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The State Department were less critical than the Senate and pointed out that Japan was paying $1 billion for US forces. in Japan However Japan's trade imbalance had risen from $2 billion in 1979 to $18 billion. They added that Japan imports less than Switzerland!'
The Department of Defence said that Japan was spending 0.93% of their GNP on defence and that this would have to rise to at least 1.8% by 1990 if the Japanese were to have any capability for self defence.
The Japanese third defence plan 1982-1987 was now under consideration.
JAPAN
In Japan we talked to members of the Special Committee on Security of the House of Representatives, the Foreign Minister, the Minister of Justice, the Director General of the Japanese Defence Agency etc. The members interested in defence took the view that Japan could and should spend more.
It appeared that
The Government recognised that the Prime Minister's promise should be fulfilled but refused to say when. this would take at least ten years.
The Japanese were getting worried about the increasing threat from the USSR, particularly from the SS20 and the Backfire bomber, and recognised that the Americans had to move units from their Seventh Fleet from the Pacific to the Indian Ocean.
Japan imports 99% of its oil, 70% from the Middle East and at present did nothing to protect these vital supplies.
They were concerned about the continued Soviet occupation of their four northern islands, and recognised the need for greater air defence and the improved ASW capabilities of their Navy.
The Americans had 51,000 troops in Japan and one was very sympathetic with their frustration about the slowness of the Japanese to provide for their own defence.
I would particularly like to refer to the outstanding quality of Mr J S Whitehead, the Chargé d'affaires (the Ambassador being on leave), who could not have been of greater assistance to us.
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