Jan 14 report, japanese business leaders in china

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Thank yotr lor yonr l.tr-cr ot January 14 to i1€ Presidenl, to wlic} l raye been aslrcd ro rcDly. D'6P AlSl) ii3/o oo....)8".< r--v. ^- .-rr ^ .Fpo ' !'

^L,M .. ,nora.\ , r.in" i.'. r:. -.ap"'. r la io .'"s, I lonrd, vcry !selu1. As ,ou remarked, r€dctions to Cliresc Pr.rnier Chon Er-tai's co,mnents on Sino-Japanese rcl.tn,ns did ItrhisI atr if,er.sting irriglf oa lbis relalionshil, I alptc.iete very much your sharhg lris comletris lvith !s,


Senior srafi Ofliccr

.rlct -



llx::'"'":,*'" Nev Yorlr, Ncv York 10!04 rl IiLES


2/rsl72 rrb)





xn. Ixr'January 14,

19r 2.

President Richard M. Nixon


My Dear

Mr. Presrdent:

vi6it to New York city witb your fafrily, to attend the theatre, you nay recaI1 havins le€n gracious enolgh to stop rroliday sieetinqs sitn a nun ber of peopre as you sere leaving tne 21 club. r uas one of those, and mentioned tlat I nad not seen you sirce tle days when you useal to tuncn from tine to tine at the on your recent


of the directors of

my conpany uho

is a promilert


distinquisbed ralanese businessnan, rec€ntly wisited naintana chiba a.d gave ar interviee to one of the Jalanese maqazines about lris trip, following his return. He {as sood enough to senal me a copy of tbis -report and I tholqht it sufficiently int€restinq to -axraht nly sendirs it or to you. Ae 1 read it. there is a sood d€a1 that ca! he read between the lines if one takes trre tine to cortenlrate a rittle bit vlrat tbe riter is so carefully sayilq. The whore question of tbe relationship betueer Japan ard china is a fascinating one, and one -hicn is nDt easy to defi.e ewen for the cbinese and Japanese thehs€lves. xeeping the above in mind, tbe attacned relort - it seens to ne is a valuable one in providing some insisht into tlre indiviatual Japanese ale making to understand and to be uDderstood try thei! chinese neighbcf,s.

sith all

qood qishes,



itctori on a Visit oI Tokyo's lop BL'sjncss J,eaders to Ciina

Nainland China (as rt birrhrlac., .nd I tholsht I r,.s Ne1l i.Io! cd about tle chans€s tnat harc trk.tr pl..e there.

3ut as a res!lt oI a r€c.nt 1ri, ro China, I \ras rcally srrpris.d to discoler rlrat conrenporary China has under!o.€ a significani inprovenetrt in rarious respecrs. 1he rife of chinesc people today is far bctlcr than it vas in the pasr. Pr€viously jn china tnere Nas s ride gull L,etL.c.n rich ald Ioor, and the Irivileged class oftcn squeezcC tne conmon

pcolre, olten to an exc.ssire extent, I 0),sc1I oftcn {itxessed thjs tr"pe of exploitation, ire.ause of this, I Nas pa.ticrlarly impressed durins my tri! !y the lanarkable chaDees tnat nav. taken place there.

0riginatly, L,c erpected inat Ne trorld have a series of rleli,rinar/ talrs trith our clinese counrcrrarrs. on suci occasions, r'e tnolght (c lould 6e livcn a chance to express otr or r opinion and, at the sane tine, to hcar Nhat the Chincse had to say. Durins tle eichange of opinions, ve aiso anticipated, political !roblens routd sonerincs cnerse, o. other difticult or even intlactaile natters. But our {ears proved ulJound.d. Tlre Clrinese sidc shoNed, fron thc start, its ieadincss to h€ar our frank vievs on !.hat .Iaranese econonists and busifessnc. think alout Japa. and rle Nortd of today, and Nhat they thouEht Nould Le Jalan,s futurc

policies jn tl\e orld.oi:mlrity. Tllc," listened to our ri\-. L rho't a"l.'-nL r y'cdl q'(qrioos tirst land stud)' tcur oI irdustlia1 ard eCucarional {aciliries, and had a cl'a.ce to talk about v.rious ,!3ttcrs Nith clinrse Deorlc. In this c?se, too, thev seened to 6e irtcrcsten in hcarj!8 our lielis lut this is nv ol'n !in!rcssjon, and I do n.t rnoN exdcllr \rnat kind of inpressior Nc inade a

the othc,

Jarranese dclegates had.

ou} stldy tour took us to unilersities in tlle suburbs of Peking, chenical industriar conrlcr.s, People's Connuncs,

farn vi1lalcs, atrd so oD. ilnost everyuhere I Nent I Nas greatlr inprcss€rl by vhat I sar'. the unique education svsten at thc nniversities enligl\t€ned us a -great deal ' Nlile the hignly succc5sful coo!erat!ons b.tveen acanenic circles ard tle irdustrlal coflnunity strucl us as vholly adniratle. Also inlressive r,as tne pcrfect control of $aste vatet at oil refinins !1ants. rt People's Consunes, it vas our inPression thdt cbaiflnan IIaors idea o, uniting agricultu?c and industrv Nas bcins put into plactice admirabry, and tlat the leop1e's facirities for both liviDg and $ortirg {ere kePt extr€nelv

tr ihc lrelininary talks, l;c iid not u:e the tem "re,ised


.apiLaljsn, ! At tlre outs.t of thc toll(s on tne Iirst da, oI our rrir, r1r, snoji, tlre forncr l,residcnt oI Japan Io.orolI Corporation, na.le an i.a!!u.n1 address o, bel,alf of thc JaPancse

I{r, iijlir(nda, c,IaiLrtrarr ol Tolyo tlcctrjc ro,ier Corpany, 1rc,, tallicd oi his o(n viei5, nIi.n arc tirokn anong us ds thc "liilariada vision," ln lis !a1:rs, ur' Iili.{aL1a nientioncd tlrc ph!ase "neN capitalisi," Lur did not u5e tlle tern !'revised ca!ita1isn." lle â‚Źxptcsscd ii. basic idea aDoui the nornalization cf diplonatic rel3tions letNeen Jap.tr and Cnina, enlhasizjnE tle reccssjt/.I d.epenins mutu41 understandina and 1rust. Ile sf,id that the Japanese econony it bascd on the capjtalistic principle, but that c.Pitalisttc econonl itself is nolr uJergoing a najor chansc, !e t|en discussed tne lroblern oI Io! \'e shourd try to inlrorc oxr ovn econonic systen. In this connection, lre tatked abolt thc vision expressâ‚Źd in ni) oL1 boo( ent:11.., i" 01o':c 'on.t"rv S..''d on I'noris'." Ther I vas asked to say sonethins. l talted atout the roaa to tne construction of an orderly and harnoniors rrelfare society baseil on the policy of stable ccononic Crovtn aad thc corcePt a concept I have so far been stud/jng of hrnan respcct together rith ncnbe!s of the Jalan comnittee for Econonjc Developnent. I rent into detail in an atte pt to supplenent (hat Lr. xika{ada s, id. dcleeation.


I po nred 'Lr ''\-


lr:. Ll1 tr. i"'! ,'e J- .-cse '"ono,, 3

no! faces, lI. are (rl the suptlI of naturat rcsou!c.s, (21 traDsporlarjon, i3) enrirotrn.ntal pollution and lo.ation .t industrial plarts, i4) suppl-r oI labot force, ard (s) frictions vith forcill tr.dina partncrs. .s you tnorr, I nar€ long leen insistinC that iI Japan continues to a.hicv. an econ.nic grorlth rale of nore than 10tr 3 year, sle Ni11 naturallv cor€ to Iace difficult problens sooncr or later, tl.c!.fore the groNth tenpo of tlle Jalanesc ccon.ny vill hale to be oderated

[n-Laj e\I]cssed his ovn vieNs atJoxt our ideas. llis nanner oI erirrcssion \ias very sontlc, but l had t\e feeli!s tlat Ie Nas Iery shart in Sraspi g our nost vital and vulnerable points, rlre first loint !e siezed upor concclned tle current picturc of tne Japanese ecotro[y. Prenier Clou sai.1 that tne current diffi.ult situation of tle JaDinese econonl seened to have resulted fron cont.adictions peculi,r to the capitalistic econony, Nhich had earlier Iee, pledicted bv llarx and l,enin. IJ€ said jt rould be a Cood idea iI sc ma.1e an effort to revise caritalisn and contributc to tne lrono tion of Noild peace and,clfare for aIr nankind. Blt, he continu€d, rhat he fears is thaL {natever our {ishful thinkirg iEy be, the anarcnistic laN intrinsi.slly inhcretrt in a ca?italistic econony will er.ntua1l/ !revent ou, ideas fron Prertric, Chou

b. sure, !nis point is one of rhe najor Celects peculiar to cor\,.,1io.a1 capitalistic eccnoDy. l rysell thinh tliat this is undcni.bl.. treiiier chou added that eye. if ve tr/ to revisc thc aDarchistic nalur. of capilalistjc To

econom), and introduce a plrnned econony, as long as our

.! the rrincille o, Iree ecoroir, th. econonic grcNtn rate Ni11 tend to rise IiElter by jtsolf aid thcrc ri11 arise tne problen of over plodlction- Such a process !i11 take p13c. i. dcl:iance of our oNn su[jective vi11. It Ni11 bc incvitablc aftcr d11, econonic

srste is


Preni€r Clro!, j. concludint hjs ta1h, said thaL he had a feelinC that th. !roNth 1ci'po ol tbo j?-!iarcsc econonry \'as too Iast, and tlre nanncr of Jalancsc ccononic aronth sone-

{hat xneven and !rccarious, lle said that .inons th€ factors baving suppoltcd tho JaDanese econonl in post xar years N€re included a nunb.r of rijndfall clcnents. First of all, the Korean Nar, ana then the Victnan fiar. The United states occupi.d Japan (after tle second r,rorld ltar) atrd hare, sin.c tnen, continueJ to naintain her nitttary bascs and troops in Japan under the Securit, Treaty between tle tvo countries. Such a continse,t happeninS nas enablcd Jatan to grou {ithout carrling a neavy burden of itrililary defcnse costs and to continuc to achieve atr annral ecoloi,ic sroNtl rato of rore tl,in 101 Ior som. Jozer ) errs lut rt wouILl be roo 5

ortinistjc to tnink that su.I a convcnient situation trould last Ion8. Japaneso €conorists seen to considcr that a rrorer ccoronic sro(ih rate oI Jalan xould bc 8l o, tner. llhi1c saying this, he looled as abouts, in rcat if he lllcught that such a niEh levc1 ot Erolilh rate,ould IJ. soneuhal difficult to re.lize. lle also addcd that {hat is morc inlortant tliln tlle mcre sre.d of cconomic ardvth triI1 bc tnc basic Dri.ciple slpportiDx the Erortl ard its substance. this lird, r'e firsl can€ to rerlize that thcsc Ncrc the nosi 1ila1 Foints. Il.arinE criticis


(Resudine thc !rollcn of selI-dcfense,l Presier Cnou saiil that it is quite nattrrrl that an inile! endent country should defend its orq irdeperdence, $verci*nty, and ter-

ritory, and have its ovn self nefense force for that purpose. But I tlrilt tlrat Prenier Chou, in naling tnis statenent, based it on the Fr€nise that a country in tnis case nust be an indelendeDt country. Ily leeling (as that Frenier Cho! did not seen to recognize that Jopan is a corpletcly indepenilent courtry, Japan has the security Treaty Nith Anerica, and there are Anerican nilitary irases in Ja?an. A1so, J.pan is heavily dc!cndcnt on Anerica econorically. I real1y felt that Pr€nier Chou, judsins Iron these f.ctors, seen to co.sid.r Jnran t. lr. not an inJct).nd.nt country in tlre a

I shout,l liIe to add a fe! vords in this conn.ction. That is, tne {act rcnairs t}at Jatanrs ecoronic poier of ional oves nxclr to tle United states --- na$e1), thc Anclican occuration !o1icy and econonic assista)ice to JataD. Alove all, Jana. is depc.dent a areat deal on Anerican capital for the sur!1y of a nejor portion o{ ra! naterials {hich arc indispcnsable to Japanese industry. To change tne culrent siluatjon abruptly js vjrtually inpossibre Iion Jaran's standpoint, I lnjnk that !rei!ie, Chou linself is reIl a{are of this lojnt, To eljtuinate nisunderstanding,

TIe Jalanese are fa! )rore inpatient hr_ nature than the Chinese, and are apt to conside! thinls on., "atl or.otline"

basis, The Chinesc lat of tlirliins, howe!er, is characteriscd by tatience. Thcy arc pretared to contenptate things taking 10 years, 20 yca!s, or even 100 years in some cases. In lIis sense, I tlirl it is reasonatl. to .onsid.r that vnat Preriicr Chou said to us is not bas€d on a snort ranee vicu, bxt is interaed to indicate the nay that things sfi.nl.l he i. tne

Jatan and CIina .re Iery close in nany respects and are capable

of fillinA each other's needs, Prcnier CIou said.

Pronotion of friendly rclations bet!..n 1l,c tNo .ouitries

n€rcafter lril1 serr. to nialc s!.1:. !.olrbilit,



Rc!arding the proLlon of rarLral rescurces, he recalleC that lelore th€ var, scholars of the world {crc alnost un-

ani ous ir sayins that inportint natrral resourc.s suc! as oi1 probably did not cxist jn llainland cnirn in an) sienilicant atrount, b!t tlis Drediclio^ Nas not correct.

bciig deveroped in In fact, letrolcun vari.us places in Najnlan.! c[ina. It is cven said that china is ro, plannins to develop subnariae oil resources. Prenier Clou did not nention this natter directly, but s€e,red to bc confident tnat such a Dossibility is very likely I felt that Prcnier alou tad nade a statenent {lrich could be interpr.ted as a }int that cnina nislLt becore able to suPply oi1 ro Japan in the futu.e, d€Pendils lpon cir.unstanccsBut

tlis again is ny oN. opinion,

according 1o rrenier chou, China ratcs JaPan's tcchnorogy ve,y nis}ly. Chira's purchasins pode! Ii11 continue to becone strong€r and strorger, itratinE hcrs.lf caPabre ot increasing

her purchasins lror Japan, chi.a, hotrever,

- 6-


ror. inter.sted

iD inlortins lechIol.!I fron.Jap.n. ,]\t arlt rate, tra.lin! betieen the 1r'o counrrics oust he corducted on thc PrinciPl of "mutual rccip,ocit) lrd .qnaritr." If such a princill. is olserred faithlullyr .coxornic rclati.ns bctueen our tNo conntries could be Iurther expanded and improYed. lrc$ier Chou hirserf, it seeiied to,re, Nas oI the iilea that sucl a

t,lina roulil !e of nulua1 tenerit. 1l)ere is a gicat deal of r.rforn.l ion about CIina

av.itahle in JaPan no{, 6ut ny feeri.r js tnat rost oI i: is distort.d to a 1a!8e extent ,rd.{t.r untruthlul. !otlr Japa, and China hale tackcd nutual u.,dcrstarding. 1 t}ink tnat it is ritally necessar) to elininatc such a 1a-ch of inutual understandire if Iriendly relati.ns betNecn tbettro c.unt,ics are to bc lronoted, The clinesc did nol raise any poli1ica1 probl.rs in connccti.n {ith the restora tion o{ nornal diplonaiic rel.tions betle€n thc tvo countries cither on this occasion in th€ {orn of a state,ncLt irv Pterier Chou, or d!rjns th€ prelininary tarls The Chinese side apparen!ly took the stand that in order to resto,e nornal diplcnatic relations betfeer JaIan,nd china, it is nece5sarito ileep€n nutual understanding fir5t of all, and for this purlosei the pro otio. of interchanses lieiir'cn tne tto cou.trics in various ficlds !s reconnended.

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