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The activities of the Central Intelligence Agency (CIA) in Japan date back to the Allied occupation of Japan. Douglas MacArthur's Chief of Intelligence, Charles Willoughby, authorized the creation of a number of Japanese subordinate intelligence-gathering organizations known as kikan.[1] Many of these kikan contained individuals purged because of their classification as war criminals.[2] In addition, the CIA organized and financed a Japanese intelligence gathering program, Operation "Takematsu", utilizing the kikan as part of an intel gathering operation against North Korea, the Kuril Islands, and Sakhalin.[3] One of the kikan created, the "Hattori group", led by Takushiro Hattori, plotted to stage a coup d'etat and assassinate Prime Minister Shigeru Yoshida on account of his opposition to Japanese nationalism.[4]
Under the direction of the American Far East Command, Willoughby amassed an on-paper force of over 2,500 intelligence personnel.[5] The CIA and military intelligence established numerous extrajudicial agencies including the "Canon Organ" which allegedly engaged in illegal abductions and torture of left-wing political activists, including novelist Kaji Wataru.[6]
The CIA was instrumental in laying the groundwork for the formation of the present Japanese political system. The agency was financially involved in the creation of the Liberal Party by abetting the requisitioning of assets seized from China. The agency also participated in an influence campaign in order to sway the Liberals' successor, the Liberal Democratic Party (LDP), towards accepting Nobusuke Kishi as prime minister. The CIA was active in advising the LDP on policy in regards to military installations in Japan and security interests. This process of aiding the Liberal Democratic Party also involved the agency establishing what has come to be described as an "iron triangle"[7] dealing in the trade of tungsten, for the purpose of covertly financing the LDP.[8] In addition to supporting the LDP financially, multiple authors have alleged that the CIA actively subverted and interfered with the Japan Socialist Party and anti-American protests in Okinawa.[8][9][10][11][note 1]
Prior to the signing of the Treaty of San Francisco, CIA operatives arrived in Japan as part of Project BLUEBIRD to test "behavioral techniques" on suspected double agents.[12] US intelligence helped allegedly establish and administer several clandestine funds collectively known as the M-fund.[13] The M-fund was allegedly used to enrich CIA contact Yoshio Kodama, who ostensibly used the fund to bankroll Yakuza protection for US President Dwight Eisenhower during his cancelled 1960 visit to Japan.[14]
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