EXCHANGE OF NOTE REGARDING PARAGRAPH 3(d) OF ARTICLE XVIII OF THE ADMINISTRATIVE AGREEMENT UNDER ARTICLE III OF THE SECURITY TREATY BETWEEN THE UNITED STASES OF AMERICA AND JAPAN

　Tokyo, March 23, 1953.

　Excellency: 
I have the honor to refer to paragraph 3(d) of Article XVIII of the Administrative Agreement under Article III of the Security Treaty between the United States of America and Japan. The said paragraph provides that "the cost incurred in satisfying claims pursuant to the preceding subparagraphs shall be shared on terms to be agreed b3 the two Governments."

　In order that the two Governments may reach agreement, as contemplated by the said provision, on the sharing of the cost incurred in satisfying claims, I have been authorized  by the Government of the United States to propose to the Government of Japan that the cost incurred in satisfying claims pursuant to paragraph 3 of Article XVIII of the said Administrative Agreement shall be shared in the proportion of 75 percent chargeable to the United States and 25 percent chargeable to Japan, retroactive to the date on which the Administrative Agreement entered into force.

　If the proposal made herein is acceptable to the Government of Japan, this Note and Your Excellency's reply shall be considered as constituting an agreement, effective on the date of Your Excellency's Note in reply, between the Government of the United States and the Government of Japan as contemplated by paragraph 3(d) of Article XVIII of the Administrative Agreement. The Government of the United States undertakes to seek the legislative action required to carry out this agreement.

　Accept, Excellency, the renewed assurances of my highest consideration

　(Signed) Robert Murphy

　His Excellency
Katsuo Okazaki,
Minister for Foreign Affairs, Tokyo.

　(Translation)

　Tokyo, March 23, 1953.

　Monsieur l'Ambassadeur, I have the honor to acknowleage the receipt of Your Excellency's Note dated March 23, 1953, which reads as follows:

　"I have the honor to refer to paragraph 3 (d) of Article XVIII of the Administrative Agreement under Article III of the Security Treaty between the United States of America and Japan. The said paragraph provides that "the cost incurred in satisfying claims pursuant to the preceding subparagraphs shall be shared on terms to be agreed by the two Governments."

　"In order that the two Governments may reach agreement, as contemplated by the said provision, on the sharing of the cost incurred in satisfying claims, I have been authorized by the Government of the United States to propose to the Government of Japan that the cost incurred in satisfying claims pursuant to paragraph 3 of the Article XVIII of the said Administrative Agreement shall be shared in the proportion of 75 percent chargeable to the United States and 25 percent chargeable to Japan, restroactive to the date on which the Administrative Agreement entered into force.

　"If the proposal made herein is acceptable to the Government of Japan, this Note and Your Excellency's reply shall be considered as constituting an agreement, effective on the date of Your Excellency's Note in reply, between the Government of the United States and the Government of Japan as contemplated by paragraph 3 (d) of Article XVIII of the Administrative Agreement. The Government of the United States undertakes to seek the legislative action required to carry out this agreement.

　I have the honor to inform Your Excellency that the Government of Japan accepts the above proposal of the Government of the United States, and to confirm that your Note and this reply are considered as constituting an agreement between the two Governments effective on this date.

　I avail myself of this occasion to renew to Your Excellency, Monsieur l'Ambassadeur, the assurance of my highest consideration.

　(Signed) Katsuo Okazaki
Minister for Foreign Affairs

　His Excellency
Robert Murphy,
Ambassador Extraordinary and Plenipotentiary of the United States of America

　(Translation)

　April 6, 1954

　Monsieur l'Ambassadeur, I have the honour to refer to Article XXV of the Administrative Agreement under Article III of the Security Treaty between Japan and the United States of America. Article XXV provides, inter alia, in paragraph 2(b) that Japan will make available without cost to the United States, until the effective date of any new arrangement reached as a result of periodic reexamination, an amount of Japanese currency equivalent to $155 million per annum for the purpose of procurement by the United States of transportation and other requisite services and supplies in Japan.

　I have further the honour to refer to the official minutes in respect to Article XXV, in which it is recorded that as Japan may increasingly assume responsibility for its own defense as is indicated in the Security Treaty between Japan and the United States of America, the United States of America will give consideration, in the light of increased expenses required for such defense, to a request by Japan for a reduction in expenditures as provided in paragraph 2(b) of Article XXV for maintenance of United States armed forces in Japan.

　I now wish to inform Your Excellency that Japan is increasingly assuming responsibility for its own defense as is evidenced by a program of budgetary allocations and planned expenditures passed by the Diet on April 3, 1954 for the purpose of increasing defense strength in the current fiscal year and accordingly propose that the United States of America agree to a reduction in expenditures as provided in paragraph 2(b) of Article XXV by an amount of Japanese currency equivalent to $7,000,000 for the Japanese current fiscal year. It is understood that such reduction will be made provided the program referred to above is put into effect. It is also understood that no further change in the amount of the Japanese contribution will be made in the future except as the result of negotiation and mutual agreement between Japan and the United States of America.

　If the proposal made herein is acceptable to the Government of the United States of America, this Note and Your Excellency's reply indicating such acceptance shall be considered as constituting an arrangement, effective on the date of Your Excellency's Note in reply, between the Government of Japan and the Government of the United States of America reducing the figure of $155 million per annum as provided above.

　I avail myself of this occasion to renew to Your Excellency, Monsieur 1'Ambassadeur, the assurance of my highest consideration.

　(Signed) Katsuo Okazaki
Mnister for Foreign Affairs

　His Excellency
John M. Allison,
Ambassador Extraordinary and Plenipotentiary of the United States of America

　Tokyo, April 6, 1954.

　Excellency: I have the honor to acknowledge the receipt of Your Excellency's Note dated April 6, 1954, which reads in the English translation thereof as follows:

　"I have the honour to refer to Article XXV of the Administrative Agreement under Article III of the Security Treaty between Japan and the United States of America, Article XXV provides, inter alia, in paragraph 2(b) that Japan will make available without cost to the United States, until the effective date of any new arrangement reached as a result of periodic reexamination, an amount of Japanese currency equivalent to $155 million per annum for the purpose of procurement by the United States of transportation and other requisite services and supplies in Japan.

　"I have further the honour to refer to the official minutes in respect to Article XXV, in which it is recorded that as Japan may increasing1y assume responsibility for its own defense as is indicated in the Security Treaty between Japan and the United States of America, the United States of America will give consideration, in the light of increased expenses required for such defense, to a request by Japan for a reduction in expenditures as provided in paragraph 2 (b) of Article XXV for maintenance of United States armed forces in Japan.

　"I now wish to inform Your Excellency that Japan is increasingly assuming responsibility for its own defense as is evidenced by a program of budgetary allocations and planned expenditures passed by the Diet on April 3, 1954 for the purpose of increasing defense strength in the current fiscal year and accordingly propose that the United States of America agree to a reduction in expenditures as provided in paragraph 2(b) of Article XXV by an amount of Japanese currency equivalent to $7,000,000 for the Japanese current fiscal year. It is understood that such reduction will be made provided the program referred to above is put into effect. It is also understood that no further change in the amount of the Japanese contribution will be made in the future except as the result of negotiation and mutual agreement between Japan and the United States of America.

　"If the proposal made herein is acceptable to the Government of the United States of America, this Note and Your Excellency's reply indicating such acceptance shall be considered as constituting an arrangement, effective on the date of Your Excellency's Note in reply, between the Government of Japan and the Government of the Unit6d States of America reducing the figure of $155 million per annum as provided above."

　I have the honor to inform Your Excellency that the Government of the United States of America accepts the above proposal of the Government of Japan and to confirm that your Note and this reply are considered as constituting an arrangement between the two Governments effective on this date, reducing the figure of $155 million per annum as provided above.

　Accept, Excellency, the renewed assurances of my highest consideration.

　(Signed) John M. Allison

　His Excellency
Katsuo Okazaki,
Minister for Foreign Affairs,Tokyo.

　Tokyo, August 19, 1955

　Monsieur l'Ambassadeur: 
I have the honour to refer to Article XXV of the Administrative Agreement under Article III of the Security Treaty between Japan and the United States of America. Article XXV provides, inter alia, in paragraph 2 (b) that Japan will make available without cost to the United States, until the effective date of any new arrangement reached as a result of periodic reexamination, an amount of Japanese currency equivalent to $155 million per annum for the purpose of procurement by the United States of transportation and other requisite services and supplies in Japan.

　I have further the honour to refer to the official minutes in respect to Article XXV, in which it is recorded that as Japan may increasingly assume responsibility for its own defense as is indicated in the Security Treaty between Japan and the United States of America, the United States of America will give consideration, in the light of increased expenses required for such defense, to a request by Japan for a reduction in expenditures as provided in paragraph 2 (b) of Article XXV for maintenance of United States armed forces in Japan.

　I now wish to inform Your Excellency that the policy of the Government of Japan is to increase gradually its self-defense forces, including an increase of its self-defense forces during the Japanese fiscal year 1955. I further wish to confirm that the policy and intention of the Government of Japan is to devote a larger portion of its resources for defense purposes during the Japanese fiscal year 1956 and in ensuing years in accordance with the expectation expressed in the Security Treaty between Japan and the United States of America that Japan "will increasingly assume responsibility for its own defense".

　I have also the honour to inform Your Excellency that under the program of budgetary allocations and planned expenditures for defense for the current fiscal year, as approved by the Diet on July 1, 1955, the Government of Japan, inter alia:

1. Has appropriated for the National Defense Agency a budget of 86.8 billion yen.

2. In addition to the above appropriation, has provided the National Defense Agency with a carry-over of about 23.5 billion yen from Japanese fiscal year 1954 and will also provide the National Defense Agency with contract authorization of about 15.4 billion yen.

3. Under Article XXV 2 (b) of the Administrative Agreement, will make available to the United States an amount of Japanese currency equivalent to $105,555,555.56 for the maintenance of the United States forces in Japan, and in addition has provided an appropriation of approximately 8 billion yen to extend runways and to compensate the owners and suppliers of facilities used by the United States forces in Japan.

4. Will complete during Japanese fiscal year 1955 the
increase of strength in its defense forces as programmed in the appropriation of 86.8 billion yen for the National Defense Agency.

5. On the basis of the above, has provided a defense appropriation within the framework of last year's defense appropriation of 132.7 billion yen, and in addition will pro-vide the sum of 15.4 billion yen as mentioned above for contract authorization.

　The Government of Japan faces financial difficulties in Japanese fiscal year 1955 and considers it as a crucial period for economic stabilization of the country. It is, however, the intention of the Government of Japan as mentioned above to devote a larger portion of its own resources to defense purposes in Japanese fiscal year 1956 and in ensuing years.

　Accordingly, in the light of the considerations outlined in this Note, I have the honour to propose that the Government of the United States of America agree to a reduction in expenditures called for in paragraph 2 (b) of Article XXV of the Administrative Agreement, by an amount of Japanese currency equivalent to $49,444,444.44 for only the current Japanese fiscal year.

　It is understood that the above reduction for Japanese fiscal year 1955 will not extend beyond the fiscal year, except as may be otherwise arranged by mutual agreement between Japan and the United States of America.

　It is further understood that the Government of Japan will devote the said reduction of $49,444,444.44 for the current Japanese fiscal year to defense purposes, and that such reduction will only be made, provided the defense program outlined above is put into effect, unless amended by mutual agreement between our two Governments.

　If the proposal made herein is acceptable to the Government of the United States of America, this Note and Your Excellency's reply indicating such acceptance shall be considered as constituting an arrangement, effective on the date of Your Excellency's Note in reply, between the Government of Japan and the Government of the United States of America, reducing for Japanese fiscal year 1955 the figure of $155 million as provided above.

　I avail myself of this opportunity to renew to Your Excellency, Monsieur l'Ambassadeur, the assurance of my highest consideration.

　Mamoru Shigemitsu
Minister for Foreign Affairs of Japan

　His Excellency
John M. Allison
Ambassador Extraordinary and Plenipotentiary of the United States of America to Japan

　Tokyo, August 19, 1955.

　Excellency: I have the honor to acknowledge the receipt of Your Excellency's Note dated August 19, 1955, which reads in the English translation thereof as follows:

　"I have the honor to refer to Article XXV of the Administrative Agreement under Article III of the Security Treaty between Japan and the United States of America. Article XXV provides, inter alia, in paragraph 2 (b) that Japan will make available without cost to the United States, until the effective date of any new arrangement reached as a result of periodic reexamination, an amount of Japanese currency equivalent to $155 million per annum for the purpose of procurement by the United States of transportation and other requisite services and supplies in Japan.

　I have further the honour to refer to the official minutes in respect to Article XXV, in which it is recorded that as Japan may increasingly assume responsibility for its own defense as is indicated in the Security Treaty between Japan and the United States of America, the United States of America will give consideration, in the light of increased expenses required for such defense, to a request by Japan for a reduction in expenditures as provided in paragraph 2 (b) of Article XXV for maintenance of United States armed forces in Japan.

　I now wish to inform Your Excellency that the policy of the Government of Japan is to increase gradually its self-defense forces, including an increase of its self-defense forces during the Japanese fiscal year 1955. I further wish to confirm that the policy and intention of the Government of Japan is to devote a larger portion of its resources for defense purposes during the Japanese fiscal year 1956 and in ensuing years in accordance with the expectation expressed in the Security Treaty between Japan and the United States of America that Japan "will increasingly assume responsibility for its own defense".

　I have also the honour to inform Your Excellency that under the program of budgetary allocations and planned expenditures for defense for the current fiscal year, as approved by the Diet on July 1, 1955, the Government of Japan inter alia:

1. Has appropriated for the National Defense Agency a budget of 86.8 billion yen.

2. In addition to the above appropriation, has provided the National Defense Agency with a carry-over of about 23.5 billion yen from Japanese fiscal year 1954 and will also provide the National Defense Agency with contract authorization of about 15.4 billion yen.

3. Under Article XXV 2 (b) of the Administrative Agreement, will make available to the United States an amount of Japanese currency equivalent to $105,555, 555.56 for the maintenance of the United States forces in Japan, and in addition has provided an appropriation of approximately 8 billion yen to extend runways and to compensate the owners and suppliers of facilities used by the United States forces in Japan.

4. Will complete during Japanese fiscal year 1955 the increase of strength in its defense forces as programmed in the appropriation of 86.8 billion yen for the National Defense Agency.

5. On the basis of the above, has provided a defense appropriation within the framework of last year's defense appropriation of 132.7 billion yen, and in addition will provide the sum of 15.4 billion yen as mentioned above for contract authorizations.

　The Government of Japan faces financial difficulties in Japanese fiscal year 1955 and considers it as a crucial period for economic stabilization of the country. It is, however, the intention of the Government of Japan as mentioned above to devote a larger portion of its own resources to defense purposes in Japanese fiscal year 1956 and in ensuing years.

　Accordingly, in the light of the considerations outlined in this Note, I have the honour to propose that the Government of the United States of America agree to a reduction in expenditures called for in paragraph 2 (b) of Article XXV of the Administrative Agreement, by an amount of Japanese currency equivalent to $49,444,444.44 for only the current Japanese fiscal year.

　It is understood that the above reduction for Japanese fiscal year 1955 will not extend beyond the fiscal year, except as may be otherwise arranged by mutual agreement between Japan and the United States of America.

　It is further understood that the Government of Japan will devote the said reduction of $49,444,444.44 for the current Japanese fiscal year to defense purposes, and that such reduction will only be made, provided the defense program outlined above is put into effect, unless amended by mutual agreement between our two Governments.

　If the proposal made herein is acceptable to the Government of the United States of America, this Note and Your Excellency's reply indicating such acceptance shall be considered as constituting an arrangement, effective on the date of Your Excellency's Note in reply. between the Government of Japan and the Government of the United Sates of America, reducing for Japanese fiscal year 1955 the figure of $155 million as provided above.''

　I have the honor to inform Your Excellency that the Government of the United States of America accepts the above proposal of the Government of Japan and to cofirm that Your Excellency's Note and this reply are considered as constituting an arrangement between the two Governments effective on this date, reducing for Japanese fiscal year 1955 the figure of ＄155 million as provided above.

　Accept, Excellency, the renewed assurances of my highest consideration.

　John M. Allison

　His Excellency
Mamoru Shigemitsu,
Minister for Foreign Affairs, Tokyo.

　April 24, 1956

　Monsieur l'Ambassadeur, 
I have the honour to refer to Article XXV of the Administrative Agreement under Article III of the Security Treaty between Japan and the United States of America and to the official minutes in respect to Article XXV.

　In the exchange of notes between us on August 19, 1955, constituting an arrangement between the two Governments reducing for Japanese Fiscal Year 1955 the figure of $155 million set forth in Article XXV of the Administrative Agreement, I indicated that the policy of the Government of Japan was to increase gradually its self-defense forces and confirmed the policy and intention of my Government to devote a larger portion of its resources for defense purposes during the Japanese Fiscal Year 1956, and in ensuing years in accordance with expectation expressed in the Security Treaty between Japan and the United States of America that Japan "will itself increasingly assume responsibility for its own defense." I wish to assure Your Excellency that these are still the policies and intentions of the Government of Japan. In addition, I now wish to confirm a policy decision of the Government of Japan, in continued implementation of these policies and intentions, to carry out a sustained program for increasing Japan's self-defense forces and for assuming, in progressive stages, greater responsibility for its own defense.

　I have also the honour to inform Your Excellency that under the program of budgetary allocations and planned expenditures for defense for the Japanese fiscal year 1956 as approved by the Diet on March 27, 1956, the Government of Japan, inter alia:

1. Has appropriated for the National Defense Agency, a budget of 100.2 billion yen.

2. In addition to the above appropriation, will provide the National Defense Agency with a carry-over of any unexpended balance from the National Defense Agency appropriation for Japanese Fiscal Year 1955 and has also provided the National Defense Agency with contract authorization of about 16.5 billion yen.

3. Under Article XXV 2 (b) of the Administrative Agreement, will make available to the United States an amount of Japanese currency equivalent to $83,333,333.33 for the maintenance of the United States Forces in Japan; and in addition has provided an appropriation of approximately 10.5 billion yen for the purposes of Article XXV 2 (a) of the Administrative Agreement.

4. Will complete during Japanese Fiscal Year 1956 the increase of strength in its Defense Forces as programmed in the appropriation of 100.2 billion yen for the National Defense Agency.

　According1y, in the light of the considerations outlined in this note, 1 have the honour to propose that the Government of the United States of America agree to a reduction effective for only the Japanese Fiscal Year 1956, in expenditures called for in paragraph 2 (b) of Article XXV of the Administrative Agreement by an amount of Japanese currency equivalent to $71,666,666.67. It is understood that the above reduction will not extend beyond such fiscal year except as may be otherwise arranged by mutual agreement between Japan and the United States of America.

　It is further understood that the Government of Japan will devote the said amount of reduction equivalent to $71,666,666.67 for the Japanese Fiscal Year 1956 to defense purposes and that such reduction will only be made, provided the defense program outlined above is put into effect, unless otherwise mutually agreed by our two Governments.

　If the proposal made herein is acceptable to the Government of the United States of America, this Note and Your Excellency's reply indicating such acceptance shall be considered as constituting an arrangement, effective on the date of Your Excellency's note in reply, between the Government of Japan and the Government of the United States of America reducing for Japanese Fiscal Year 1956 the figure of $155 million as provided above.

　I avail myself of this opportunity to renew to Your Excellency, Monsieur l'Ambassadeur, the assurance of my highest consideration.

　Mamoru Shigemitsu
Minister for Foreign Affairs of Japan

　His Excellency
John M. Allison,
Ambassador Extraordinary and Plenipotentiary of the United States of America to Japan

　Tokyo, April 24, 1956

　No. 1677

　Excellency: I have the honor to acknowledge the receipt of Your Excellency's note dated April 24, 1956, which reads in the English translation thereof as follows:

　"I have the honour to refer to Article XXV of the Administrative Agreement under Article III of the Security Treaty between Japan and the United States of America and to the official minutes in respect to Article XXV.
In the exchange of notes between us on August 19, 1955, constituting an arrangement between the two Governments reducing for Japanese Fiscal Year 1955 the figure of $155 million set forth in Article XXV of the Administrative Agreement, I indicated that the policy of the Government of Japan was to increase gradual1y its self-defense forces and confirmed the policy and intention of my Government to devote a larger portion of its resources for defense purposes during the Japanese Fiscal Year 1956, and in ensuing years in accordance with expectation expressed in the Security Treaty between Japan and the United States of America that Japan "will itself increasingly assume responsibility for its own defense." I wish to assure Your Excellency that these are still the policies and intentions of the Government of Japan. In addition, I now wish to confirm a policy decision of the Government of Japan, in continued implementation of these policies and intentions, to carry out a sustained program for increasing Japan's self-defense forces and for assuming, in progressive stages, greater responsibility for its own defense.

　I have also the honour to inform Your Excellency that under the program of budgetary allocations and planned expenditures for defense for the Japanese fiscal year 1956 as approved by the Diet on March 27, 1956, the Government of Japan, inter alia:

1. Has appropriated for the National Agency, a budget of 100.2 billion yen.

2. In addition to the above appropriation, will provide the National Defense Agency with a carry-over of any unexpended balance from the National Defense Agency appropriation for Japanese Fiscal Year 1955 and has also provided the National Defense Agency with contract authorization of about 16.5 billion yen.

3. Under Article XXV 2(b) of the Administrative Agreement, will make available to the United States an amount of Japanese currency equivalent to $83,333, 333.33 for the maintenance of the United States Forces in Japan; and in addition has provided an appropriation of approximately 10.5 billion yen for the purposes of Article XXV 2(a) of the Administrative Agreement.

4. Will complete during Japanese Fiscal Year 1956 the increase of strength in its Defense Forces as programmed in the appropriation of 100.2 billion yen for the National Defense Agency.

　Accordingly, in the light of the considerations outlined in this note, I have the honour to propose that the Government of the United States of America agree to a reduction effective for only the Japanese Fiscal Year 1956, in expenditures called for in paragraph 2 (b) of Article XXV of the Administrative Agreement by au amount of Japanese currency equivalent to $71,666,666.67. It is understood that the above reduction will not extend beyond such fiscal year except as may be otherwise arranged by mutual agreement between Japan and the United States of America.

　It is further understood that the Government of Japan will devote the said amount of reduction equivalent to $71,666,666.67 for the Japanese Fiscal Year 1956 to defense purposes and that such reduction will on1y be made, provided the defense program outlined above is put into effect, unless otherwise mutually agreed by our two Governments.

　If the proposal made herein is acceptable to the Government of the United States of America, this Note and Your Excellency's reply indicating such acceptance shall be considered as constituting an arrangement, effective on the date of Your Excellency's note in reply, between the Government of Japan and the Government of the United States of America reducing for Japanese Fiscal Year 1956 the figure of $155 million as provided above.

　l avail myself of this opportunity to renew to Your Excellency, Monsieur l'Ambassadeur, the assurance of my highest consideration."

　I have the honor to inform Your Excellency that the Government of the United States of America accepts the above proposal of the Government of Japan and to confirm that Your Excellency's Note and this reply are considered as constituting an arrangement between the two Governments effective on this date, reducing for Japanese Fiscal Year 1956 the figure of $155 million as provided above.

　Accept, Excellency, the renewed assurances of my highest consideration.

　John M. Allison

　His Excellency
Mamoru Shigemitsu,
Minister for Foreign, Tokyo.

　April 25, 1956

　Monsieur l'Ambassadeur: 
With reference to Article XXV of the Administrative Agreement under Article III of the Security Treaty between Japan and the United States of America, I have the honour to refer to the official minutes of the Administrative Agreement with respect to Article XXV, in which it is recorded that as Japan may increasingly assume responsibility for its own defense as is indicated in the Security Treaty between Japan and the United States of America, the United States of America will give consideration, in the light of increased expenses required for such defense, to a request by Japan for a reduction in expenditures as provided in paragraph 2 of Article XXV for maintenance of United States armed forces in Japan.

　In the exchange of notes between us on April 24, 1956, constituting an arrangement between our two Governments, reducing for Japanese Fiscal Year 1956 the Japanese expenditures called for in paragraph 2(b) of Article XXV of the Administrative Agreement, I indicated the policies and intentions of the Government of Japan to increase gradually its self-defense forces and to devote a larger portion Japan's resources for defense purposes in the future in accordance with expectations expressed in the Security Treaty between Japan and the United States of America that Japan "will itself increasingly assume responsibility for its own defense". I also confirmed a policy decision of the Government of Japan to carry out a sustained program for increasing Japan's self-defense forces and for assuming in progressive stages a greater responsibility for its own defense.

　Accordingly, in the light of the considerations outlined in this note and in the notes exchanged between us yesterday, I have the honour to propose on behalf of the Government of Japan that the Government of the United States of America agree to the following arrangement to be applied commencing with Japanese Fiscal Year 1957 concerning an annual and progressive reduction in expenditures called for in paragraph 2(b) of Article XXV of the Administrative Agreement, and under which arrangement the Government of Japan and the Government of the United States will share the increased defense effort in equal portions:

1.(a) With an annual increase in the appropriation for defense purposes, the amount of Japanese currency to be made available to the United States of America under Article XXV 2(b) for each Japanese fiscal year beginning 1957, will be that for the previous fiscal year reduced by an amount equivalent to one-half of increase in the appropriation for defense purposes for each fiscal year over that for the previous year.

(b) For the purpose of this arrangement, the "appropriation for defense purposes" will be the total of funds appropriated for each Japanese fiscal year (exclusive of contract authorization, any carry-over of unexpended  appropriations and reappropriations of any rescinded part of previous appropriations) for the National Defense Agency and for the facilities for the United States Forces in Japan as required under Article XXV 2(a) of the Administrative Agreement.

2. In addition, any unexpended balance from the cash appropriations for defense purposes for each fiscal year will be carried over.

　I have further the honour to propose that under the foregoing arrangement the annual amount of the reduction in the said expenditures will be formalized on a yearly basis by agreement between our two Governments, such agreement to include other pertinent considerations as may be found mutually acceptable. The Government of Japan understands that the conclusion of any such annual agreement would depend upon a mutually satisfactory execution of the agreement or agreements governing reductions in Japanese contributions under the Administrative Agreement for previous periods.

　To this end, therefore, the Government of Japan proposes that the authorities of Japan and the United Statets of America review on an annual basis, prior to the consideration of an agreement concerning the said annual reduction in expenditures, the status and execution of the sustained defense program and other plans related to the defense of Japan.

　If the proposals as made here are acceptable to the Government of the United States of America, this note and Your Excellency's reply indicating such acceptance shall be considered as constituting an agreement effective on the date of Your Excellency's note in reply, between the Government of Japan and the Government of the United States of America.

　I avail myself of this opportunity to renew to Your Excellency, Monsieur l'Ambassadeur, the assurances of my highest consideration.

　Mamoru Shigemitsu
 Minister for Foreign Affairs

　His Excellency
John M. Allison,
Ambassador Extraordinary and Plenipotentiary of the United States of America to Japan

　Tokyo, April 25, 1956

　Excellency: I have the honour to acknowledge the receipt of Your Excellency's Note dated April 25, 1956, which reads in the English translation thereof as follows:

　"With reference to Article XXV of the Administrative Agreement under Article III of the Security Treaty between Japan and the United States of America, I have the honour to refer to the official minutes of the Administrative Agreement with respect to Article XXV, in which it is recorded that as Japan may increasingly assume responsibility for its own defense as is indicated in the Security Treaty between Japan and the United States of America, the United States of America will give consideration, in the light of increased expenses required for such defense, to a request by Japan for a reduction in expenditures as provided in paragraph 2 of Article XXV for maintenance of United States armed forces in Japan.

　In the exchange of notes between us on April 24, 1956, constituting an arrangement between our two Governments, reducing for Japanese Fiscal Year 1956 the Japanese expenditures called for in paragraph 2(b) of Article XXV of the Administrative Agreement, I indicated the policies and intentions of the Government of Japan to increase gradually its self-defense forces and to devote a larger portion Japan's resources for defense purposes in the future in accordance with expectations expressed in the Security Treaty between Japan and the United States of America that Japan "will itself increasingly assume responsibility for its own defense". I also confirmed a policy decision of the Government of Japan to carry out a sustained program for increasing Japan's self-defense forces and for assuming in progressive stages a greater responsibility for its own defense.

　Accordingly, in the light of the considerations outlined in this note and in the notes exchanged between us yesterday, I have the honour to propose on behalf of the Government of Japan that the Government of the United States of America agree to the following arrangement to be applied commencing with Japanese Fiscal Year 1957 concerning an annual and progressive reduction in expenditures called for in paragraph 2(b) of Article XXV of the Administrative Agreement, and under which arrangement the Government of Japan and the Government of the United States will share the increased defense effort in equal portions:

1.(a) With an annual increase in the appropriation for defense purposes, the amount of Japanese currency to be made available to the United States of America under Article XXV 2(b) for each Japanese fiscal year beginning 1957, will be that for the previous fiscal year reduced by an amount equivalent to one-self of increase in the appropriation for defense purposes for each fiscal year over that for the previous year.

(b) For the purpose of this arrangement, the "appropriation for defense purposes" will be the total of funds appropriated for each Japanese fiscal year (exclusive of contract authorization, any carry-over of unexpended appropriations and reappropriations of any rescinded part of previous appropriations) for the National Defense Agency and for the facilities for the United States Forces in Japan as required under Article XXV 2 (a) of the Administrative Agreement.

2. In addition, any unexpended balance from the cash appropriations for defense purposes for each fiscal year will be carried over.

　I have further the honour to propose that under the foregoing arrangement the annual amount of the reduction i11 the said expenditure3 will be formalized on a yearly basis by agreement between our two Government, such agreement to include other pertinent considerations as may be found mutual1y acceptable. The Government of Japan understands that the conclusion of any such annual agreement would depend upon a mutually satisfactory execution of the agreement or agreements governing reductions in Japanese contributions under the Administrative Agreement for previous periods.

　To this end, therefore, the Government of Japan proposes that the authorities of Japan and the United States of America review on an annual basis, prior to the consideration of an agreement concerning the said annual reduction in expenditures, the status and execution of the sustained defense program and other plans related to the defense of Japan.

　If the proposals as made here are acceptable to the Government of the United States of America, this note and Your Excellency's reply indicating such acceptance shall be considered as constituting an agreement effective on the date of Your Excellency's note in reply, between the Government of Japan and the Government of the United States of America.

　I avail myself of this opportunity to renew to Your Excellency, Monsieur l'Ambassadeur, the assurances of my highest consideration."

　I have the honor to inform Your Excellency that the Government of the United States of America accepts the above proposals of the Government of Japan and to confirm that Your Excellency's note and this reply are considered as constituting an agreement between the two Governments effective on this date.

　Accept, Excellency, the renewed assurances of my highest consideration.

　John M. Allison

　His Excellency
Mamoru Shigemitsu,
Minister for Foreign Affairs, Tokyo.

　August 16, 1957

　Monsieur l'Ambassadeur: 
I have the honour to refer to the exchange of notes effected at Tokyo on April 25, 1956, between Foreign Minister Mamoru Shigemitsu and Ambassador John M. Allison relating to the arrangements between our two Governments to be applied commencing with the Japanese Fiscal Year 1957 for support of United States Forces in Japan as provided for in Article XXV of the Administrative Agreement under Article III of the Security Treaty between Japan and the United States of America and the official minutes with respect thereto.

　Under the exchange of notes, in consideration of a continuing annual execution by the Government of Japan of its Policy expressions with respect to carrying out a sustained program for gradually increasing Japan's self-defense forces, an arrangement was agreed to between our two Governments whereby an annual and progressive reduction could be effected in expenditures called for in paragraph 2 (b) of Article XXV of the Administrative Agreement. The amount of the annual reduction would be formalized on a yearly basis by agreement between our two Governments, such agreement to include any other pertinent considerations found to be mutually acceptable.

　The Government of Japan reaffirms its previously expressed Policies and intentions to carry out a sustained program for gradually increasing Japan's self-defense forces and for assuming, in progressive stages, a greater responsibility for its own defense. A larger portion of Japan's resources will be devoted for defense purposes during the Japanese Fiscal Year 1957 in accordance with the expectations expressed in the Security Treaty that Japan "will itself increasingly assume responsibility for its own defense."

　I have further the honour to inform Your Excellency that under the program of budgetary allocations, planned expenditures and authorizations for defense for the Japanese Fiscal Year 1957, as approved by the Diet on March 31, 1957, the Government of Japan, inter alia:

1. Has appropriated for the Defense Agency a budget of 101 billion yen:

2. Will provide the Defense Agency, in addition to the above appropriation, with carryover of any unexpended balances of appropriations for that Agency for prior fiscal year8, and has also provided the Defense Agency with contract authorization of approximately 23 billion yen; and

3. Has provided an appropriation of approximately 10.5 billion yen for the purposes of Article XXV 2(a) of the Administrative Agreement.

　The authorities of Japan will continue to review on an annual basis with the authorities of the United States of America the status and execution of the sustained defense program and other plans related to the defense of Japan.

　In the light of the considerations outlined in this note reflecting the policies and actions of the Government of Japan, I have the honour to propose that, in accordance with the Exchange of Notes of April 25, 1956, the amount of Japanese currency to be made available to the United States for the Japanese Fiscal Year 1957 under Article XXV 2(b) of the Administrative Agreement, be the equivalent of $82,222,222.22. It is understood that this proposal depends upon a mutually satisfactory execution of the agreements governing reductions in Japanese contributions under the Administrative Agreement for previous fiscal years.

　If the foregoing proposal is acceptable to the Government of the United States of America, I suggest that this note and Your Excellency's reply indicating such acceptance be considered as constituting an agreement between our two Governments, effective on the date of Your Excellency's reply, concerning the amount to be made available to the United States of America under Article XXV 2(b) of the Administrative Agreement for the Japanese Fiscal Year 1957.

　I avail myself of this opportunity to renew to Your Excellency, Monsieur l'Ambassadeur, the assurances of my highest consideration.

　Aiichiro Fujiyama
Minister for Foreign Affairs

　His Excellency
Douglas MacArthur II,
Ambassador Extraordinary and Plenipotentiary of the United States of America to Japan

　No. 279

　Tokyo, August 16, 1957

　Excellency: I have the honor to acknowledge the receipt of Your Excellency's Note dated August 16, 1957, which reads in the English translation thereof as follows:

　"I have the honour to refer to the exchange of notes effected at Tokyo on April 25, 1956, between Foreign Minister Mamoru Shigemitsu and Ambassador John M. Allison relating to the arrangements between our two Governments to be applied commencing with the Japanese Fiscal Year 1957 for support of United States Forces in Japan as provided for in Article XXV of the Administrative Agreement under Article III of the Security Treaty between Japan and the United States of America and the official minutes with respect thereto.

　Under the exchange of notes, in consideration of a continuing annual execution by the Government of Japan of its policy expressions with respect to carrying out a sustained program for gradually increasing Japan's self-defense forces, an arrangement was agreed to between our two Governments whereby an annual and progressive reduction could be effected in expenditures called for in paragraph 2 (b) of Article XXV of the Administrative Agreement. The amount of the annual reduction would be formalized on a yearly basis by agreement between our two Governments, such agreement to include any other pertinent considerations found to be mutually acceptable.

　The Government of Japan reaffirms its previously expressed policies and intentions to carry out a sustained program for gradually increasing Japan's self-defense forces and for assuming, in progressive stages, a greater responsibility for its own defense. A larger portion of Japan's resources will be devoted for defense purposes during the Japanese Fiscal Year 1957 in accordance with the expectations expressed in the Security Treaty that Japan "will itself increasingly assume responsibility for its own defense."

　I have further the honour to inform Your Excellency that under the program of budgetary allocations, planned expenditures and authorizations for defense for the Japanese Fiscal Year 1957, as approved by the Diet on March 31, 1957, the Government of Japan, inter alia:

1. Has appropriated for the Defense Agency a budget of 101 billion yen;

2. Will provide the Defense Agency, in addition to the above appropriation, with carryover of any unexpended balances of appropriations for that Agency for prior fiscal years, and has also provided the Defense Agency with contract authorization of approximately 23 billion yen; and

3. Has provided an appropriation of approximately 10. 5 billion yen for the purposes of Article XXV 2(a) of the Administrative Agreement.

　The authorities of Japan will continue to review on an annual basis with the authorities of the United States of America the status and execution of the sustained defense program and other plans related to the defense of Japan.

　In the light of the considerations outlined in this note reflecting the policies and actions of the Government of Japan, I have the honour to propose that, in accordance with the Exchange of Notes of April 25, 1956, the amount of Japanese currency to be made available to the United States for the Japanese Fiscal Year 1957 under Article XXV 2 (b) of the Administrative Agreement, be the equivalent of $82,222,222.22. It is understood that this proposal depends upon a mutually satisfactory execution of the agreements governing reductions in Japanese contributions under the Administrative Agreement for previous fiscal years.

　If the foregoing proposal is acceptable to the Government of the United States of America, I suggest that this note and Your Excellency's reply indicating such acceptance be considered as constituting an agreement between our two Governments, effective on the date of Your Excellency's reply, concerning the amount to be made available to the United States of America under Article XXV 2(b) of the Administrative Agreement for the Japanese Fiscal Year 1957.

　I avail myself of this opportunity to renew to Your Excellency, Monsieur l'Ambassadeur, the assurances of my highest consideration."

　I have the honor to inform Your Excellency that the Government of the United States of America accepts the above proposal of the Government of Japan and to confirm that Your Excellency's Note and this reply are considered as constituting an agreement between the two Governments effective on this date, concerning the amount to be made available to the United States of America under Article XXV 2(b) of the Administrative Agreement for the Japanese Fiscal Year 1957.

　Accept, Excellency, the renewed assurances of my highest consideration.

　Douglas MacArthur II

　His Excellency
Aiichiro Fujiyama, Minister of Foreign Affairs, Tokyo

　Monsieur I'Ambassadeur: I have the honour to refer to the Exchange of Notes of April 25, 1956 relating to the arrangements between our two Governments for support of United States Forces in Japan as provided for in Article XXV 2 (b) of the Administrative Agreement under Article III of the Security Treaty between Japan and the United States of America and the official minutes with respect thereto.

　Under the Exchange of Notes, in consideration of a continuing annual execution by the Government of Japan of its policy expressions with respect to carrying out a sustained program for gradually increasing Japan's self-defense forces, an arrangement was agreed to between our two Governments whereby an annual and progressive reduction could be effected in expenditures called for in paragraph 2 (b) of Article XXV of the Administrative Agreement. The amount of the annual reduction would be formalized on a yearly basis by agreement between our two Governments, such agreement to include any other pertinent considerations found to be mutually acceptable.

　The Government of Japan reaffirms its previously expressed policies and intentions to carry out a sustained program for gradually increasing Japan's self-defense forces and for assuming, in progressive stages, a greater responsibility for its own defense. A larger portion of Japan's resources will be devoted to defense purposes during the Japanese Fiscal Year 1959 in accordance with the expectations expressed in the Security Treaty that Japan "will itself increasingly assume responsibility for its own defense."

　I have further the honour to inform Your Excellency that under the program of budgetary allocations, planned expenditures and authorizations for defense for the Japanese Fiscal Year 1959, as approved by the Diet on March 31, 1959, the Government of Japan, inter alia:

1. Has appropriated for the Defense Agency a budget of 136 billion yen:

2. Will provide the Defense Agency, in addition to the above appropriation, with any unexpended blances of appropriations for that Agency for prior fiscal years which can be carried over under relevant provisions of the Japanese fiscal laws and regulations now in effect, and has also provided the Defense Agency with contract authorization of approximately 19.8 billion yen; and

3. Has provided an appropriation of approximately 6.5 billion yen for the purposes of Article XXV 2 (a) of the Administrative Agreement.

　The authorities of Japan will continue to review on an annual basis with the authorities of the United States of America the status and execution of the sustained defense program and other plans related to the defense of Japan.

　I have the honour to propose that the amount of Japanese currency to be made available to the United States for the Japanese Fiscal Year 1959 under Article XXV 2 (b) of the Administrative Agreement, be the equivalent of $30,833,333.33. It is understood that this proposal depends upon a mutually satisfactory execution of the agreements governing reductions in Japanese contributions under the Administrative Agreement for previous fiscal years. It is understood that for the Japanese Fiscal Year 1959 only the reduction from the previous year includes $8,333,333.33 in addition to the progressive reduction calculated in accordance with the provisions of the Exchange of Notes of April 25, 1956. It is understood further that this additional sum does not create a lower base for calculating the yen contribution in Japanese Fiscal Year 1960 than would have obtained without the additional reduction.

　If the foregoing proposal is acceptable to the Government of the United States of America, I suggest that this Note and Your Excellency's reply indicating such acceptance be considered as constituting an agreement between our two Governments, effective on the date of Your Excellency's reply, concerning the amount to be made available to the United States of America under Article XXV 2 (b) of the Administrative Agreement for the Japanese Fiscal Year 1959.

　I avail myself of this opportunity to renew to Your Excellency, Monsieur l'Ambassadeur, the assurances of my highest consideration.

　Aiichiro Fujiyama
Minister for Foreign Affairs

　His Excellenc
Douglas MacArthur II,
Ambassador Extraordinary and Plenipotentiary of the United States of America to Japan.

　Tokyo, April 6, 1959

　Excellency: I have the honor to acknowledge the receipt of your Excellency's Note dated April 6. 1959, which reads in the English translation thereof as follows:

　"I have the honour to refer to the Exchange of Notes of April 25, 1956 relating to the arrangements between our two Governments for support of United States Forces in Japan as provided for in Article XXV 2 (b) of the Administrative Agreement under Article III of the Security Treaty between Japan and the United States of America and the official minutes with respect thereto.

　Under the Exchange of Notes, in consideration of a continuing annual execution by the Government of Japan of its policy expressions with respect to carrying out a sustained program for gradually increasing Japan's self-defense forces, an arrangement was agreed to between our two Governments whereby an annual and progressive reduction could be effected in expenditures called for in paragraph 2 (b) of Article XXV of the Administrative Agreement. The amount of the annual reduction would be formalized on a yearly basis by agreement between our two Governments, such agreement to include any other pertinent considerations found to be mutually acceptable.

　The Government of Japan reaffirms its previously expressed policies and intentions to carry out a sustained program for gradually increasing Japan's self-defense forces and for assuming, in progressive stages, a greater responsibility for its own defense. A larger portion of Japan's resources will be devoted to defense purposes during the Japanese Fiscal Year 1959 in accordance with the expectations expressed in the Security Treaty that Japan "will itself increasingly assume responsibility for its own defense."

　I have further the honour to inform Your Excellency that under the program of budgetary allocations, planned expenditures and authorizations for defense for the Japanese Fiscal Year 1959, as approved by the Diet on March 31, 1959, the Government of Japan, inter alia:

1. Has appropriated for the Defense Agency a budget of 136 billion yen;

2. Will provide the Defense Agency, in addition to the above appropriation, with any unexpended blances of appropriations for that Agency for prior fiscal years which can be carried over under relevant provisions of the Japanese fiscal laws and regulations now in effect, and has also provided the Defense Agency with contract authorization of approximately 19.8 billion yen; and

3. Has provided an appropriation of approximately 6.5 billion yen for the purposes of Article XXV 2 (a) of the Administrative Agreement.

　The authorities of Japan will continue to review on an annual basis with the authorities of the United States of America the status and execution of the sustained defense program and other plans related to the defense of Japan.

　I have the honour to propose that the amount of Japanese currency to be made available to the United States for the Japanese Fiscal Year 1959 under Article XXV 2 (b) of the Administrative Agreement, be the equivalent of $ 30,833,333.33. It is understood that this proposal depends upon a mutually satisfactory execution of the agreements governing reductions in Japanese con- tributions under the Administrative Agreement for previous fiscal years. It is understood that for the Japanese Fiscal Year 1959 only the reduction from the previous year includes $ 8,333,333.33 in addition to the progressive reduction calculated in accordance with the provisions of the Exchange of Notes of April 25, 1956. It is understood further that this additional sum does not create a lower base for calculating the yen contribution in Japanese Fiscal Year 1960 than would have obtained without the additional reduction.

　If the foregoing proposal is acceptable to the Government of the United States of America, I suggest that this Note and Your Excellency's reply indicating such acceptance be considered as constituting an agreement between our two Governments, effective on the date of Your Excellency's reply, concerning the amount to be made available to the United States of America under Article XXV 2 (b) of the Administrative Agreement for the Japanese Fiscal Year 1959."

　I have the honor to inform Your Excellency that the Government of the United States of America accepts the above proposal of the Government of Japan and to confirm that your Excellency's Note and this reply are considered as constituting an agreement between the two Governments effective on this date, concerning the amount to be made available to the United States of America under Article XXV 2 (b) of the Administrative Agreement for the Japanese Fiscal Year 1959.

　Accept, Excellency, the renewed assurances of my high est consideration.

　Douglas MacArthur II

　His Excellency
Aiichiro Fujiyama
Minister for Foreign Affairs,Tokyo.