Digitized from Box 65 of the Gerald R. Ford Vice Presidential Papers at the Gerald R. Ford Presidential Library OFFICE OF THE VICE PRESIDENT WASHINGTON January 21, 1974 MEMORANDUM OF CONVERSATION PLACE: OEOB TIME: 9: 00 a. m.. DATE: January 10, 1974 SUBJECT: Meeting with Deputy Prim.e Minis ter Takeo Miki of Japan ~"""." PAR TICIPANTS: The Vice President ~ Major General Dunn Am.bassador Robert . I ersoll Manabu Fukuda, Interpreter Deputy Prim.e Minister Takeo Miki Am.bassador Takeshi Yasukawa Yoshio Okawara, Director of Am.erican Affairs Bureau M. Kunihiro, Interpreter After an exchange of pleasantries, Deputy Prim.e Minis ter Miki opened his rem.arks with a discussion of the significance of his three-week m.ission to eight Middle East nations expressing his hope that his m.eetings with the leaders of the United States m.ay produce som.e m.utual benefit as regards the global energy crisis. Mr. Miki was encouraged by the discussions with the leaders of the Arab nations who recognize now an opportunity to resolve the problem.s of the Middle East. The Arab leaders welcom.e present negotiations to achieve disengagem.ent and hope that peace will com.e soon. Miki believes that the United States is the only country that can take a peace initiative and asked the Vice President for a continued strong effort on the part of the United States to achieve this goal. Miki then touched on the subject of the Arab leaders I thoughts on the present energy situation. He believes that reduction in oil export supply and raising the price of crude oil is not based solely on nationalistic tendencies. They contend that Arab nations are predominantly desert areas and that their sole natural resource is oil deposits. They see a need to conserve this valuable resource. There is a need to cooperate with the Arabs by aiding them in their efforts to industrialize and modernize. He emphasized Japan's role in extending economic and technical assistance for this area of the world which supplies more than 80% of Japanl s petroleum needs. Miki expressed the thought that the Arab leaders are not only interested in the present supply of oil resources but they are also quite concerned about the development of an alternate energy resource because eventually the fossil fuel supply will be exhausted. He again emphasized that the influence of the United States is vital in the settlement of the Middle East problems. He believes that stability must be achieved in the Middle East before energy problems can be solved and depends upon United States leadership to use its influence to resolve the differences existing between the Arab nations and Israel. He asked that the President, Vice President, Dr. Kissinger and other American leaders continue to exert efforts to achieve this end. The Vice President spoke of the need for strong support of UN Resolution 242. Words will be more meaningful if we can end the Middle East war, His extensive travel in the United States has indicated overwhelming support for Kissinger's efforts to find a solution to the Middle East problems. Whatever solution Dr. Kissinger proposes the American people will support. Miki stated that the United States is the only nation with sufficient influence and strength to achieve succes s in this task. He injected a personal note by saying that he had supported UN Resolution 242 in a speech at the United Nations General Assembly while he was Foreign Minister of Japan. He regrets that nothing has been accomplished during the past six years. He looks forward to an initiative by the United States to correct this situation. "r.:." ...1 < " 2 ., The Vice President spoke of the departure of Dr. Kissinger to the Middle East tonight to continue negotiations and expressed his belief that action will be forthcoming. The Vice President said that an energy crisis does exist in the United States but is less severe than in other nations, such as Japan. President Nixon will propose a program which should make the United States self-sufficient by 1980. Miki replied that producing and consuming nations have mutual interests and should complement each other. The producing nations want to industrialize, and this is one area where the industrialized consumer nations can aid them. The Vice President then touched on his visit to the People's Republic of China during June and July of 1972. Senators Mansfield and Scott preceded him by about two months. His trip to China was concentrated mainly in the North. He was unable to stop over in Japan at that time but expressed his hope of a visit to Japan again soon since his last trip was in August of 1953. Miki promptly invited the Vice President to visit Japan as soon as pos sible. The meeting ended with an exchange of pleasantries. 3 January 21, 1974 Mr. Gerald R. Ford Vice President of the United States of America Dear Vice President Ford: I should like to express to you my sincere gratitude for the cordial welcome you and the Government of the United States kindly extended to me during my visit to Washington, D.C. I was particularly glad to have the opportunity of meeting with you to encharge our thoughts on the problems of our mutual concern. It is in the full realization of the tremendous responsibilities our countries have to shoulder in the face of manifold and difficult tasks both domestic and international that I offer you my very best wishes for your health and the success of your Vice Presidency. Thanking you again for your hospitality and looking forward to seeing you again, I am, Sincerely yours, / Briefing Memorandum Visit of Deputy Prime Minister Miki Takeo Miki completed his nineteen-day mission to eight Middle East countries on December 30. The OAPEC member countries have since designated Japan as a "friendly" country, and Miki is receiving the credit. Analysis and Background Although head of a large faction within the ruling LDP, Miki's political strength has been on the decline. His post as Deputy Prime Minister has an impressive title but little real power. With no position on the Arab­ Israeli dispute on the record, Miki was untainted from the point of view of either side, had the requisite rank, and was selected to make the trip at a time when Japanese public opinion was demanding dramatic action. The lifting of the embargo against Japan just as Miki returned to Tokyo crowned his trip with apparent triumph. Our purpose in receiving Miki is to encourage Japan to resist domestic pressures for an expedient, short-term solution which would please public opinion, but complicate our own efforts to bring about a lasting settlement in the Middle East. We also want to hear Miki's own impressions on the situation. Miki is coming to Washington to balance his trip to the Middle East. He will want to show that Japanese ties with the US have not been weakened, and he will seek our understanding and acquiescence, if not our overt support, for Japan's overtures to the Arabs. Japanese concern about oil exports is entirely genuine. The Japanese feared that the Arabs would press Miki for more specific actions against Israel, such as a break in diplomatic relations. Fortunately the Arabs did not apply new pressures, and were glad to discuss closer economic ties with Japan. Miki took with him a list of major projects which Japan is prepared to carry out in the Middle East. The Japanese are increasingly worried about oil price DECLft,SSIFIf:O E.O. ~;... '. .'\ ":; '\ 3 GDS By .J~_"-=.~~_'>:;", ....~.::jqJ-1IJ.~. <SFCP:iT 2. increases. That concern is the reason for Japan's willingness (expressed privately) to join in meetings with other major consumers without Arab participation. That is a complete reversal of their past policy of avoiding con­ frontation with the Arabs. They have also solidly supported the establishment of the Energy Action Group proposed by Secretary Kissinger in his London speech. Should the opportunity arise, you may wish to emphasize the following US positions, some of which may be touched upon by Secretary Kissinger. Issues and Talking Points 1. Miki Mission to the Middle East Japanese Position: The mission was necessary to explain Japan's position on the Arab-Israeli dispute and to win Arab cooperation in assuring stable oil supplies to Japan. To get that cooperation Japan offered technical and industrial development assistance, but not submission to Arab blackmail. Japan wants to hasten, not delay, a peace settlement. US Position: We appreciate Japan's interest, which we obviously share, in promoting a peaceful settlement, but take no stand either way on the Miki mission. We believe a strong, united position in the face of Arab pressures offers the best prospect for success. Suggested Talking Points: -- We understand and sympathize with Japan's posi­ tion of heavy reliance on oil imports. -- There is no short-term solution to Japan's problem, nor can it be resolved bilaterally. The oil consuming countries must work together and with the producers to achieve a lasting settlement. -- We appreciate Miki's repeated assurances that his mission was not to be interpreted as an effort to solve Japan's problem in isolation. 2. Energy Action Group (EAG) Japanese Position: The Japanese are "basically in agreement with the EAG proposal and would like to deal positively with it so that its objectives are achieved." •) 3. us Position: We propose the establishment of an EAG to develop an action program for collaboration in all areas of the energy problem. Suggested Talking Points: -- We are glad to have Japanese support for the EAG proposal.