The Japanese further demonstrated their desire for improved relations with the U.S. last week when the Nissan Motor Company, Ltd., manufacturer of Datsun cars and trucks, donated $1 million to Harvard for a Japan Institute.

The firm allocated the grant for the construction of a new building, the creation of new building, the creation of new teaching posts in Japanese studies and the enlargement of Harvard's Japanese literature collection.

But the long term goal is to implant a greater understanding and spirit of cooperation in America towards its growing industrial competitor, Masataka Usami, vice president of Nissan's American branch, said last week.

The announcement of the Nissan donation comes one year after the Mitsubishi group of industries gave $1 million to Harvard for the establishment of a chair in Japanese legal studies at the Law School.

Harvard was chosen for the gift partly because Edwin O. Reischauer, University Professor, is the former U.S. ambassador to Japan, Usami said.

Reischauer will accept the gift from Nissan in Tokyo later this month.

Reischauer and John K. Fairbank, director of the East Asian Research Center, were the chief proponents of the Japan Institute, which will cost an estimated $5 million when completed.