Press translations [Japan]. Economic Series 0008, 1945-11-14.

Extracts:

Premier SHIDEHARA left TOKYO station at 1910 on 6 November to attend the economic round-table meeting held under the auspices of the OSAKA Commercial and Industrial Association. In his interview with cabinet reporters on the train, he answered soberly the questions regarding the counter-measures for the urgent food shortage and unemployment problem, reconstruction of bombed ruins, economic stabilization, and inflation curbs.

The following are the chief points of his answer:

• 1.Counter-measures for the food shortage are under way.
• 2.Development of hydraulic power will be taken up as the basic factor for the economic reconstruction of the country, and will at the same time solve the keen problem of unemployment. The unemployed will be mobilized for the construction of tremendous dams in certain places all over the country.
• 3.We leave national reconstruction work to KOBAYASHI's (The Minister Without Portfolio) resourcefulness.
• 4.He is confident in tiding over the present trying inflation. His answer to the food question is as follows: All over the world the food situation is tense. In our case, besides the present unprecedented poor rice crop in JAPAN, the prospect for SOUTHEAST ASIA rice producers is not rosy. KOREA's large yield of rice this year is not available to us, nor is FORMOSA's rice crop. We must import it from overseas, dependent upon Allied Headquarter's sympathy with us. I expect the Headquarters will do something for us in view of people starving. In fact, some concrete measures have been taken, leaving only particulars to be worked out. Now for the reparations. Even in silk production, on which we rest our hope, immediate increase will be hard to achieve. The price fixing and shipping present another difficulty. With only a million tons of shipping available, trade is out of the question. Here again we have to ask the Allied Forces for consideration.

Whether the present ration of rice be increased or net when its importation is allowed, I wouldn't say, last I should default on my word.

ECONOMIC SERIES: 8 (Continued)

ITEM l (Continued)

The Premier disclosed his proposed counter-measures for the unemployment problem. Generally speaking, the quickest way to solve the unemployment difficulty is by means of a tremendous engineering program. As the loser of the war, the only natural resource we possess is potential hydro-electric power. It is my ardent desire to exploit fully this power on a large scale.

Dams and power plants will be constructed all over the country. In short, I have in mind giving the primary priority to the development of the power on which the Japanese economic resurrection will rest. This plan, if put into operation, will absorb tremendous numbers of unemployed.

Inflation is another serious problem. I have instructed the financial authorities to take it over. He said that the hopeless financial condition of GERMANY following World War I will not be repeated here.

Full translation:

A proposal regarding the establishment of an "Enterprise Re-examination Committee" (KIGYO-SAIKEN-I-IN-KAI) is to be submitted at the 6 November committee meeting of the KEIZAI-DANTAI-RENGO-KAI (Union of Economic Bodies).

The purpose and organization of the committee are as follows:

Purpose: Compensation for munition works has become a political problem as well as an economic problem. It is therefore essential to the reconstruction of peacetime JAPAN that a reasonable policy for business enterpriser be established.

Organization: The new committee will be called "The Enterprise Re-examination Committee". Under the chairman, four sub-committees are to be set up for the settlement of accounts, for policy on compensation, for policy on reconversion, and for petitioning. Questions pertaining to these matters will be handled by the sub-committees.

Full translation:

Even under the pressing food situation, the amount of rice used for the brewing of sake has bean increased by 40 per cent as compared with that of the previous year, in SAITAMA-KEN. Allotted amounts for the SAITAMA prefecture are as follows: Refined sake, 23,292 KOTU; MIRIN (a sweet sake), 10 KOKU; and shochu (a spirit distilled from sake refuse), 4 KOKU; making a total of 23,306 KOKU. In addition, it is thought that, in 1945, 10 per cent more alcohol was used than in 1944.

- 2 -

ECONOMIC SERIES: 8 (Continued)

Full translation:

The Paper Goods Manufacturing Control Organization (ZENKOKU-KAMISEIHIN-SEIZO-TOSEI-KUMIAI) has announced its manufacturing schedule for staple paper goods; such as, note-books for school use, letter-paper, envelopes etc., for the third quarter of this year.

The kind and amounts directed to be manufactured are as follows:

Each note-book is rationed at one for three months' use per student. The making of auxiliary account-books is allowed during this time. Tags for certification use are provided for charcoal. Ordinary tags are rationed two per house.

Paper is alloted for the general manufacture of paper products as follows:

Other paper goods will be manufactured to meet each local demand.

Summary:

Control companies (TOSEI KAISHA) which had been expected to perform an important role during the war are going either to be dissolved or to be changed into self-governing organs. So far the situation is as follows: Four of them have already started their activities as private associations, two as associations under the present special regulations, one liquidated, and the future of five is still undetermined.

Delay in formulating their reform plans is reported to have been caused by the undecisive attitude of the Commerce and Industry Ministry. Generally speaking, control companies seem to be waiting for the completion of new industrial corporation regulations which the said ministry is enacting. Up to now, only two bodies, namely, the LIGHT METAL ROLLING INDUSTRY ASSOCIATION, and COPPER WORKING ASSOCIATION have been inaugurated. Both associations decided to

- 3 -

ECONOMIC SERIES: 8 (Continued)

ITEM 5 (Continued)

adopt less complicated regulations with no presidency, the board of directors taking all responsibility. Directors will be elected not only from among influential companie[illegible], as has been the case, but many will come from medium and small scale business.

Full translation:

The Chemical Industry Control Association (KAGAKU KOGYO TOSEIKAI) has been pursuing a plan to reduce its structure as a measure to continue operation until a new organization is formed. As the association cannot aim at the elimination of sections with regard to the structure, because of the liaison and business with the Allied Headquarters, it has decided to reduce the number of employees only. As a result the personnel will be reduced to one-third. Two-thirds of them will be thrown out of jobs, but half of these will probably be employed by the interested control companies, some of them having been already appointed.

Now that matters of production, price, etc., along with this reduction of employees has been handed over to the control companies, this association will continue its functions of planning, liaison, research, etc.

- 4 -