1 E X D I s E X D I s E X D I s E X D I DECLASSIFIED Authority l f 1 9b 1 TELEGRAM Department of State -GEeRET PAGE 01 TOKYO 09358 01 OF 02 1013562 50 ACTION S 5 INFO OCT 01 cco 00 sso 00 NSCE 00 046 W 109805 '- 0 R 10103 02 NOV 69 FM AMEMBASSY TOKYO TO SECSTATE WASHDC IMMEDIATE 9615 INFO HI COMRY OKINA WA S g e RE T -1' - vJ SECT ON I OF 2 TOKYO 9358 EXDIS ST TE FOR UNDE SECRETARY JOHNSON DECLASSIFIED E O 1352 Sec 3 3 1s - Date By_ _ __ NARA 'q 1· 7 - I TREASURY FOR SECRETARY KENNEDY FROM JURieH SUBJ OKINAWA REVERSION• ECONOMIC FINANCIAL ASPECTS REF I ST ATE 186208 - SUMMARY• l o AGREEMENT HAS BEEN REACHED WfrHIN LIMITS GUI QELINES REFTEL• AMBASSADOR MEYER AND MINISTER SN yDER CONCUR WIT PRO POSED AGREEMENT AS THE MOST FA VO RAB LE POSSIBLE TO USG ANQ AS CONSISTENT WITH OVER•ALL ' OKINAWA REVERSIO N GOALS• STRONGuY URGE TOP PRIO RITY WASHINGTON CONCURRENCE• PROPQSED LUMP SUM A REEMENT COMPREHENDS FOLLOWING COMPONENTS AND VALUES AS KEYED TO REFTELa 1 11 CIVILIAN AND JOINT USE ASSETS $l75M 121 SOCIAL ' SE URlTY ACCRUED DEBT $33MI 131 PAYMENT IN KINP FOR RESIDUAL VALUE MILITARY FACILITIES ATTRIBUTED T01 POSSIBLE MIL TARY REL0CATION AND OTHER UNSPECIFIED COSTS TO US RELATE r TO • REVERSION • · $200MI 41 CURRENCY SUBST1TUTION • $ll2Mo 2 • PROPOSED AGREEMENT WITH GOJ THUS TOTALS $520M WITHOUT AGGRE• GAT i NG ADDITIONAL $l65M FROM SEPAR ATE DISpOSITIONS BOR A D POL AND USG BUDGETARY SAVINGS FOR FIVE YEARS AFTER REVERSION GRAND TOTAL PROPOSED AGREEMENT THUS WOULD BE $6g5M• END SUMMARY• I • AGREE MENT IS IN FOR M OF MEMORANDUM OF UNDERSTANDING TO BE ACKNOWLEDGED ORALLY TO JURiCH ON· NOV 12 BY' FUKUDA AND CO FIRMED IN WRITING BY KASH WAGI SEVERAL WEEKS AFTER SATO•NIXON MEETING• s it SECRET NOT TO BE REPRODUC D WITHOUT THE HORIZATION OF THE EXECUTIVE SECRETARY DECLASSIFIED Authority De p -d 11bwe nb uj f lA GE 0 2 ' 7 0K YtOl 09135 8 0 1' OF 02' $P-£1J-Be l f 1 bftl' X1 ElllG 110 r 3'56 Z REAS'ON FO R THIS1 PR ° c E01J RE LS C OM'8J --A1T1 Ql ll GiJJlJ• cmNCffilill TVH T v ·r-• I B I1L 1 T '1 P R E• COMMUN l •Q1JE F IIN ·Nc I AL 0JI •S-CU6Elto N-S- BE KEPT rn ITT rrL-u rr M•I1NJfMU M AN ' FUKllD'A 1 S UN OER-'SIT A'NDl i tN ffi T WA i 9 E rn£TiA R Y K ED'¥ A-GH ED 1' T FA 1 RF re •l D1 P' A Rhll 1'01 A ccr t Flt H• r s O 'Alil JD 'M1JI'Ti'M'ENIIT'•• Wt BELL I EV 11 HA·T· W E Ml J$ 11 A' Cc E P T B 01TW ITTr J I croN·CER N A'N 0 FllLK l ll 0-- A 1'53 OERsm-m0 JrNG'i A'-S V AL JrD' • AC CUR0' l 1NGl Y WE' P'RulP1tJSE FCDl l 0Y' UN ffi s-c EN RTI m1 1 W-H1IH041 WE BEL f EVl F ULJ Y A'O ENU W-lTE i QR ffi JR P -U WQSE S 11 JU R Jl 'H--K A'S ·hl W A fuI ff o A G'R Elr M'ENff ON cmNJl EN 1Tf$ MEMUWAWUl M1 Tll JE£0-'AWt E A'-R-L Y A Fi 6 R'N-OlU'Nio 8 • JURICH •FU UDA MEET I NG WEDN ESD AY MOR N1I NG•• FU K fJDA TO AC NOW L EDGE TH A T MEMORA N DUM c ONS Ti l ES HIS AGR EMENr WITH SEC E TARY K ENNEDY• JUR 1 CH TO •K-ENNE DY ME MOR AND M OF CONV E RsA T roN OF WEDNESDA-Y c Mfi ETI N G• D • WE PROPOSE ALSO ON TUES DA Y T•O' 1 -ET KA S t 1 j 1WAG f KNGW I •N E ASO Nu ABL y DEL ' CA TE WAY THAT JUffl Clf•KENNEDY M MC- -M 51 'IiN G P R'EP IO ' RED AND WHAT I TS CONTE NT S ARE o WI LL OFFER C 0-P Y OF ME MC ON TO I ASH I WAGI FOR HIS INFOR MA TION BUT PLAN NOT TO rN s J ST THAT HE CC EPT • rT Eo IN EARLY DECEMBE R KASHI WAGI TO PASS T RQUG WASHINGTO N AND CONFIR M MEMORANDUM WITH JURICH BY JOINTLY DNITIALL NG 2• COMME NT ON ROPOSED SCENARIO g g WHILE fHis PROCEDURE OBVIo USLY NOT IDEAL WE HAVE NO FEAR THAT FUKUD Wll L ' BACK iiWAY FRO M AU THORIZI NG KASH WAGI TO CONFIR M MEMORANDUM POST•COMMUNtQUE• F UK UDA IS PREPARED TO GIVE US HIS WORD ON _ THE MATTeR IT CLEARLY WO ULD BE B OTH DEMEA N ING AND DANGERO US TO JNSIS T ON SIGNATURE NOW GIVEN FUKUDA ' S P ERSONAL COMMI T MENT TO SECTY KENNEDY• RE Q QU EST APPROij L OF P R OPOSED SCENAR I O• 3 EMORA N DUM OF UNDERSTANDING FOLLOWS QTE MEMORANDUM 0 UNDER o S TAND ING BETWEEN 1' HE 1 MINISTRY OF I F N ANCE 9F JAPAN AND THEl UNrT ED STA T ES TREASURY DECEMBE •• 5 0 0 0 1 1969• REPRESENTATlVES QF THE M l N I s T R y o F F I N·A' N CE AND THE DEPARTMENT OIi' THE TREASURY H V E HELD CONVERSATIONS ' C0NCERN1 NG THE P'R I NC J p E S TO BE FOLLOWED BY OTH SIDES DURING • THE DEfAILED NEGOTlATio s CONCERNING ceRTAIN ONOMIC AND FINANCIAL ASPECifS OF HIE REVE R'SLON TO JAPAN OF AD li » il¾lilEf- EPRODl JCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY 'o ' • aJ- DECLASSIFIED Authority Department of State l f lJ 9bf CO TELEGRAM GGCRET PAGE 03 TOKYO 09358 01 OF ' 02 · 013562 MINISTRATIVE RIGHTS IN OKINAWA • AS A RESU T · OF THESE DlSGUSa SIONS THE REPRESENTAT I VES HAV E REACHED THE UNDERSTANDIN@ OUTLINED BEL OW• 1 PURCHASE OF C'I VI AND JO I NT USE ASSETS· 175 Ao POWER CO PO ATION Bo RD LC Co WATER CORPO AT ON D ADMINISTRATIVE STRUc URES Eo ROAD SYSTEM OUTSIDE BASES Fo SUCH NAVIGATION AND COMMUNICATIONS AIDS AS MAY BE AGRBED UPON INO El It l EACH SIDE MAY CHOOSE TD A TRIBUTE AND ASCRIBE DIFFERENT VALUES O THE COMPONENTS OF THE C·I VIL AND JO I NT USE ASSETS 2 TOTA L WOULD INCLUDE ANY INCREMENTS Tlo lROUGH THE • REVER$10N DATE 3 PAYMENTS IN CA§H OVER GREED N MBER OF YEARS 1 i l U So INTEREST IN RYYKYU BANK AND P O L' FACILITlES TO BE DI SPOSED OF • IN THE EVENT OF A SALE THE uSG TO FIX THE ASKING PRICE WHICH SHALL ' BE A REASONABLE PRICE ND NOT AN ART i eIClALLY HIGH PRICE WHICH WOULD IN EFFEC NU LLl r Y THE PREEMPTIV RIGHTS DESCRIBED BELOW t A RYUKYU AN PERSONS WI LLI HAVE PR EE MPT I VE R I GHTS TO BUY SOME OR ALL OF RYUKYU BANK SHARES AT ASK1NG PRICE Bl ANY BALANCE REMAINING AFTER THESE ASSETS MAY HAVE BE8N OF FERED FOR SALE TO RYUKYUANS TO BE SOLD B¥ PUBLIC AUC1ION IF NOT FULLY TAKEN UP BY RYUKYUAN PEOPLE• S ET - NOT TO BE REPRODUC D W ITHOUT THE A U HO RIZATIO N OF THE EXECUTI VE SEC RETA RY DECLASSIFIED Authority Department of State l f lJ 9b 1ttl TELEGRAM SECRET PAGE 04 TOKYO 09358 01 OF 02 · 1013562 rs Cl ANNOUNCEMENT OF SALE OF ABOVE ASSETS NOT TO BE MADE UNTIL AFTER S BSTANTlAL SETTLEMENT ' OF ASSETS au ST10N IS REACHED ANO CAN BE ANNOUNCED PUBLICALL • 101 THE SPECIFIC METHOD OF DISPOSITION OF THE POL FACiuITIES H S NO YET BE N OECJDED UPON• - I 151 SINCE THE UNITED STATES GOVERNMENT A TER NOV MBER 1969 M AY BE IN N£ED - OF FUNDS TO Fl NANCE PROJEciS · IN THE RYUKYUAN ECONOMY THE USG AND THE GOJ WILL CONSULT AS TO THE EFFE T OF OlSPOSIT16N OF - ANY ' OF THE ' CIVILlAN AND JOjNT USE ASSETS RIOR TO · RE1 ERSION FOR SUCH NEEDS SUCH D ISPOS1T ION IF ANY WIL LI BE CARRIED OUT AFTER CONSULrATtONJ AND PROcrtos OF ANY SALE WILL ' BE DEDUCTED FROM THE $J75M AGRESO TO BY TH£ G0J MEYER SEERE'l'- N-DT TQ s'E REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY '