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THE EVOLUTION OF THE U.S. JAPAN ALLIANCE William C. Sherman JL? the fall of ig45JAPAN layinruins, and the United States entered the country as victor and occupier. Forty percent ofJapan's urban areas had been destroyed, production in both the agricultural and manufacturing sectors was only 60 percent of 1933 levels, and more than 25 percent of Japan's physical capital stock had been lost to direct war damage. Few Americans then would have dared to predict thatjust more than 30 years later, Japan would be the world's second largest economy, a global leader in technology, and a major source of private capital and official development assistance for the nations of the world. But on the day that he accepted Japan's surrender, General Douglas MacArthur broadcast a report to the American people. Speaking with the authority of his long experience in Asia, MacArthur forecast a future for Japan: "The energy of the Japanese race, if properly directed, will enable expansion vertically rather than horizontally. If the talents of the race are turned into constructive channels, the country can lift itself from its present deplorable state into a position of dignity."1 In 1945 even fewer would have dared to predict also that these two wartime enemies would forge during the next four decades one of the 1. GHQ, SCAP, Press Release, "Text of Speech by the Supreme Commander for the Allied Powers Broadcast to the American People on V-J Day," 2 September 1945, as cited in Reports of General MacArthur, The Campaigns of MacArthur in the Pacific, vol. 1, prepared by his General Staff. (Washington, D.C: Government Printing Office, 1966), 455, 458. William C. Sherman is deputy assistant secretary of state for East Asian and Pacific affairs. Ambassador Sherman has been a foreign service officer for more than thirty years and has served overseas in Japan and Italy. 191 192 SAIS REVIEW world's strongest and healthiest alliances, and one that continues to grow in importance not only to the United States and Japan themselves, but also to the world. In his landmark speech at the Shimoda Conference on 2 September 1983 exactly thirty-eight years to the day aiter MacArthur's broadcast to the American people, Secretary of State George P. Shultz said that something "remarkable" has happened in our relationship. An increasingJapanese perception ofJapan's global responsibilities; a resurgence of American confidence and of confidence in America; our combined influence on events; and the fact that what we do together has worldwide ramification, have turned our bilateral partnership into a global relationship. "We are faced now with unprecedented opportunities to act as partners on a global scale," said the Secretary, "and we have an obligation to grasp those opportunities and to use them for the advantage of present and future generations of the entire world."2 An equally remarkable and positive transformation has taken place in American popular attitudes towards Japan as well—although it is hard to tell that from a perusal oi current literature. A glance at recent American magazines and books could lead one to believe that the United States and Japan are again on a collision course: Trade War, Chip Wars, The Japanese Conspiracy: The Plot to Dominate Industry Worldwide and How to Deal with It, and Japan Against the World, 1941-2041: The One Hundred Year War for Supremacy are among the most recent book titles, and the pages of American newspapers regularly highlight the latest problems in our trade relations. Publishers apparently believe that this is what will sell, and editorial standards and reality are often thrown to the wind in the process. A recent article in a prestigious business magazine authoritatively stated that Japan "is still virtually shutting out U.S. agricultural imports"3; yet the reality is that Japan is America's best customer for food products—bar none—and buys nearly $7 billion per year from us. The truth is that the American people have a far more positive attitude ano a lot more common sense about Japan than many people in Washington give them credit for. In a spring 1984 Gallup poll ot the American people, Japan ranked third among twenty-two countries...

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