B

CONFIDENTIAL

At the time, it seemed

21 January (see attached telegrams).

clear that the additional $9 billion allocated by the

Japanese was for the multinational force as a whole, and

that the only question was how much of it the UK would get.

4. However, the Americans have since laid claim to the whole amount, and the latest report from Tokyo (in the telegram at A) makes clear that this is causing an

embarrassing problem for the Japanese. The Ambassador's

recommendation is that we should tackle the Americans about

the problem, and we are indeed submitting separately,

recommending a message from the Prime Minister to the President about the whole question of burdensharing.

5. In addition, we need to keep up the pressure on the Japanese. Lord Caithness is at present in Hong Kong, and from preliminary soundings I understand that it would in principle be possible for him to go on to Tokyo on

2 February.

J. A. Noakes

for

RH Smith

CONFIDENTIAL

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