Sep 5 memo

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THE IVHITE HOUSE

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MEMORANITUM FORJ

r]ENFY A, XISSINGER PETFR C, PE IERSON U.S. -Japar Joinr Economic

Aftached, but not necesiarily ror your reviev rodav

.hFs".re.rvof sarF, doA,and4c.i pp.per,T.b 8,, bo,hor sh.h r"ldrc'o.o. Lie.rh L'.S, -J:pao rorl r ono-i. . o, ri,reF n e"..rg

E.hedulsd ror September 9 .nd tO. Based o! these fremoranda ins decision mehorand!h:

ve recommend thar y.u approve the tollow-

The Presideni ha6 revieved rhe secrera.y or Septehber 1, 19?t on rhis subje.t, ae wen as The Presi denr nas dire.ted tnat in ite ECoNcoM meetinas, Delesation be guided by ihe rolloving prin.ipat poinis:

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Tnroughout the heeringsi aE p.oposed by rhe secretary of stale, we snould endaavor io ieesrabtistr in the hinds or rhe J.p.""". tr,.,igiit:..""" and closeness ol tne Ij,s. -Japanese relarionship thro"gt , or ro.tl,coming politi.al and psycholosi.ar measures. w€ shotrld: "..i""

. as.ure rhe Japanese that sho.dy after th€ EcoNcoM _ the President will se.d rhe Asrcemedr

meering

for Reversion 6f okina*a to seratc w h a s[onE recomnrendarion for irs e:.ly ratitication,

-Rearlirm.ur offer t6 explore vith Japan

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and other possibility ot sel]ins rh€h classitied u.s. !echnolosy lor u3e in a easeous dillusion pranr in a ihird .ountry tor enricnmeni of u.anirm.

2-

Indicate our deeire lor c1 i6n i. Beelin8 solurions 1o conmon problems in th€ fields of hansporraiion and ecolosy.

--Indicate villinc.ess ro support election of a Japancse chairma.

GAIl this Nowcmber.

of the

-Ildicate our desire ro worh within ihe oECD }Jieh Level G.onp to prepare the vay fo1 a major multilabral atkcr< on hade bar.iers.

--rndicare our desire to develop inrelnatio,at procedures for adjudicating invesrftent disputes in developi.g.ounhies.

2. The U. S. nev economi. policyi vith special emphasis on our balan.e ol payments goars, shourd be clearly explaincd to ihe Ja!,anese delegarion. we should slate strongly ihat it is our convi.tion thai a reasonatly lralanced l.ade account bctveen our t\!o .ouuies is necessary and leasible by the e.d or l9?3. ri should be poinred out thar, as we uderstand Japanese balance ot parments an.l rrade proj€ctions, they are incomlatible vith our obje.riwes. It should be pro posed that ve volL together to achieve mutually agreed .ompaiible balance of payments soa1s.

1.

The overriding U. S. objective is to obtain a rewaluation of the c!!!encies of our major trading partners, vhich will irclude a subera,rial revaluation or rhe ,eh. wh e negoriariors on rhe exacr amount of yen rcwaluarion sought should be calri€.1 otrr mult;lareralty, se.rerary comally is aurhorized p.iwarely, iI he wishes, to intorm rhe Japanese Ministers th:t a levaruario, in the ranse ot 15 ro 20 per.enr

4. li/e

should indicate rhat ve vould only remove ihe t0 percenl sur!harC- dhe. o.! ere.ndl oo5''ion.s as.u-c,.

5. Beyonil ihis, we sish to a.hieve our baLance o{ parments goals primarily through trade liberalization ard vc expect tle Jalanese to rehove quotas and other import restrictions iuegal under tne GATT. 1Ve are pa*icurarly interested in prompt removal ol quotas on agricdtural it€ms, .ohputers, air.raft, ad jat€grated.ir.nits.

6. we

shonld vel.ome lhe Jzpanese eight-point program, a d u'ee'h_m' srr- ,

.omend

?. It should ne made clear to ih€ Japa,es€ tlat {e sti11 Beel a !esotiaied wolDtary restraini aCreement for t*tiles bnt wilr be prepared to solve the proLlem in o&er ways il an agreement is noi fo*ncoming.

Our contiruing neea lot a voluntary reshai,t ag.eement {or st€el exports shourd aiso be made clear. omic .ooperaiion 3. we rh.uld 3tre5s onr il in the future. To lhis ead, ve Bholld propose periodi. meetings vitl the Japanese, sta ins vith a special interagercy mission to Japan by nd Janury to assess wilh the Japanese specific prosress tovard agreed upon balan.e ol layme4ts 8oal6, comp:tible e.onomic poricies and the eisht poi.t prosram, loide ily remai 4or emerging fuade prorlems, and to vork ont timely solutiors to como, economic problems,

9. In discussing rower priorily econonic objectives, inclndi,s in .reas€d Japanese defense procorement in tle United staics, i.cr.ased aid on sofier terms, and irvestrent liberalization, our deregates sholld maLe .l€ar our visles in tos ley, relatirg sucl secondary point3 to our ove.all balan.e 01 payments goals.

Approve with coments