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CONFIDENTIAL.

spent on defence so as to update their armed

Forces 'efficiency.

6.

It is obviously in the interests of the West

тыся

that Japan should do as well as possible to Contribute

to the defence the Pacific area. But it must be

remembered that Japan is unlikely to move fast on

increasing her defence expenditure, which is an extrem-

ly unpopular issue domestically. Obviously if Japan

could do more in the Far East, this would release US

forces for use elsewhere, but Japan would have to

spend a great deal more on defence to be a useful

partner for the US in the area. Een looking after the

sea area around Japan stretches Japanese resources to

the limit under the current defence budget.

7.

There is no formal relationship between Japan

and NATO though there are, of course close bilateral

contacts in the defence field between NATO members

(especially the US) and Japan. There is also an

informal relationship between the EEC and Japan (though

not of course on security issues). We plan to hold

political and defence talks with the Japanese sometime

this year, and/naturally discuss these subjects in

regular diplomatic exchanges. Mutual visits in both

directions between our Armed Forces and those in the

Japanese Self Defence Forces continue and there have been

RN naval visits to Japan which we hope will soon continue.

4

COMET DENTIAL.

/8.

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