https://www.nippon.com/en/features/c00202/
Japan Donates $13 Billion in Support
After the Americans made their displeasure clear to Tanba, Japan announced on August 29 that it would contribute funding to the coalition against Iraq. But the initial announcement referred to a figure of only $10 million. The next day, following an extremely frosty American response, the Ministry of Finance came out with an amended figure of $1 billion. In fact, this was the amount that had been on the table in internal government discussions from the outset, but the ineptness of the announcement only served to strengthen the impression of Japan as a self-centered country that would not contribute to international efforts without external pressure. Anxious not to alienate the Americans any further, the Japanese government later supplemented this amount with further funding, ultimately bringing the total to some $13 billion. But a dispute arose between Tokyo and Washington regarding the $9 billion of support that Japan announced after the opening of hostilities by the coalition. Was this amount denominated in yen or dollars? US Treasury Secretary Nicholas Brady and Japanese Finance Minister Hashimoto Ryūtarō came to a speedy agreement on the extent of Japanese support, but no clear announcement was made on the currency question. Following exchange rate fluctuations, Japan announced that the contribution would be denominated in yen, only for the United States to demand payment in dollars. In the end, Japan yielded—but squabbles of this kind over technical details did not make a good impression.
While this was going on, the Kaifu government submitted a “United Nations Peace Cooperation Bill” to the Diet in October in an attempt to provide the legal framework for Japan to contribute personnel. But three was no consensus even within the political leadership over the status of the personnel to be dispatched. Prime Minister Kaifu was leery of sending SDF units to the Gulf; even if members of the SDF were dispatched, he thought they should go under the auspices of a different organization. LDP Secretary General Ozawa Ichirō, by contrast, insisted that even under the existing constitution it was permissible for Japanese soldiers to take part in UN-organized operations for collective security, and argued for Japanese forces to be sent to the Gulf under the SDF banner. Opinion was similarly divided within the Ministry of Foreign Affairs. This split dimmed the prospects for passage of the legislation. And with the opposition holding a majority in the upper house of the Diet, it was unlikely that any sort of bill authorizing the dispatch of the SDF would pass. Only around 20% of the population was in favor of such a move. There was an impassioned debate within the government, but in the end the bill was shelved on November 8.
The government also failed to take any noteworthy action to secure the release of the Japanese citizens being held effectively as hostages in Iraq. Japan had little leeway for negotiations with Iraq—and even if it had dealt directly with Baghdad and secured the release of Japanese citizens, there was a concern that this might lead to increased criticism of Japan for acting in its own interests. With military action imminent, the Japanese hostages were eventually released in late November, after various efforts including a visit to Iraq by former Prime Minister Nakasone Yasuhiro as a special emissary. But given that the remaining Western hostages were released the following day, it seems likely that this decision represented a last-ditch Iraqi attempt to influence international opinion rather than the result of successful Japanese diplomacy.