CONFIDENTIAL
ai

regime since those who held the real power continue to hold it.

Japan is, however, concerned for the future since Chang represented

a moderating influence in the SCNR which has now been removed. However,
sere is no need for reappraisal of Japan's policy towards Korea at this
point.

_ _% Jn response, Mr. Bacon first noted that there had been three
identifiable groups in~ the SCNR:~ With the Chang “Do-Young group. ousted
there remained General Pak Chang Hui and his cohorts and the young “~~~ ™
colonels of the 8th class in the Military Academy. There may be

future changes as a result of rivalries between those two groups.

Mr. Bacon also noted with pleasure the Japanese conclusion that no
reassessment was necessary and elicited Mr. Kato's confirmation that
this should be taken to mean that Japan contimes to be ready to assist \
Korea if conditions permit. The US has also concluded that no
fundamental reappraisal is necessary; we are continuing our military and
economic assistance. Our contribution is contingent on the Koreans
doing their part to carry out planned economic development programs.
Mr. Bacon concluded by noting that the US would be glad to see the
resumption of the dialogue between Japan and Korea.