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CONFIDENTIAL

DSR 11C

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8.

It is therefore in our interests to press the

Japanese privately about their defence spending during

discussions with them, but not to make our démarches public.

The Americans have found it increasingly difficult to get

any increase in Japanese defence expenditure and we should

not lose credit by trying publicly to do the same to no

avail. The Japanese must be edged towards a greater resp-

onsibility in defence matters which they are beginning to

do themselves as a result of the factors mentioned above, and because of their direct vulnerability on on any interruptia in

the imports of raw materials and oil, which was brought home

to them by the 1973 oil crisis and subsequent price increases.

(of course one should add the caveat that if Japan did

spend much more on defence they might well challenge the

very lucrative arms exports orders of the US /and France in

Ruid

markets).

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Uki

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CONFIDENTIAL

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