894.00 TA/8–3154

No. 797
The Secretary of State to the Director of the Foreign Operations Administration (Stassen)1

confidential

Dear Governor Stassen: I refer to your letter of August 5, 1954, attaching a copy of Mr. Clarence E. Meyer’s report on Japan and to [Page 1716] our conversation of August 9, when you expressed the opinion that we should adopt a program making available $100 million worth of raw materials, principally food, each year for three years to be handled through an augmented FOA organization in Japan.

Now that the Agricultural Trade Development and Assistance Act2 is law and since an executive order under this Act will soon be issued, it is appropriate to consider the expansion of the FOA organization in Japan, as the Meyer report has recommended. As I understand you are now convinced that Japan can procure substantial quantities of agricultural products, I am glad to approve in principle the recommendations in the Meyer report.

It is, of course, important to give full recognition to the complex and intimate relationship between political and economic factors in Japan. I am sure you agree that due to the political situation there it would be unwise for the United States to take any action which would create undue expectations with respect to future United States economic assistance in Japan or which would, for any reason, cause the Japanese to relax their own efforts to create a sound economy in the shortest possible time. I feel as you do, that a small, highly competent FOA organization in Tokyo, together with the assignment of Mr. Meyer, will further strengthen the efforts which the United States Government has been making for several years, with considerable effectiveness, to persuade the Japanese Government to take these internal measures of self-help which, as the Meyer report properly points out, are the prerequisites to the development of a sound economy and the effective use of assistance of any sort from the United States. Mr. Meyer will, of course, be informed of these political considerations and of the importance of further developing interrelated political and economic policies with respect to Japan.

I agree that no time should be lost in completing the steps necessary for carrying out these plans. Details should, of course, be worked out with the Embassy. The manner in which the move is made known to the Japanese and to the public will be important politically and should be planned in close cooperation between our agencies.

Sincerely yours,

John Foster Dulles
  1. This letter, drafted in NA, is filed as an attachment to a covering memorandum from Robertson to the Secretary, which reads:

    “Governor Stassen and I had a long talk on this subject yesterday. There was no doubt in the Governor’s mind that we will have a substantial program of agricultural surpluses for Japan. Since this is the one condition which we have been placing upon the establishment of an FOA mission, I concluded that it would be best to agree without further delay to the establishment of such a mission.

    “Governor Stassen emphatically agreed with our position that nothing should be done which would weaken the measures which Japan must take to solve its own economic problems. Since the establishment of a mission in itself could arouse undue expectations, this will require very careful handling.

    “I have accordingly revised the letter to Governor Stassen which was prepared for your signature.”

    To this recommendation S/MSA filed a dissenting memorandum, not found in Department of State files.

  2. P.L. 480, approved July 10. (68 Stat. 455)