Press translations [Japan]. Economic Series 0025, 1945-11-29.

Full translation:

The total payment of war insurance money based on the Special Damage Insurance Law is estimated at about 35,000,000,000 yen. However, this amount is not final, as the investigation by the Accident, Insurance Investigation Association has not yet been completed. The payment will go to corporations and individuals, half each. As a matter of fact, about 25,000,000,000 yen has been paid so far, leaving about 10,000, 000,000 yet to be paid.

The amount already paid consists of the cash payment of about 5,000,000,000 yen and the payment in the form of temporarily frozen deposits of about 20,000,000,000 yen. The outstanding amount of about 10,000,000,000 yen is for items involving the amount of more than 1,000,000 yen each, on which investigations are to be made before the payment is made.

So far payments have been made for about 400 items on investigation and, judging from this, the average amount of large insurance money for one item is estimated at 5,000,000 yen. About 2,000 items for 20,000,000,000 yen remain to be investigated. Before the termination of the war, priority was given to the investigation and payment for munitions companies because their rehabilitation was necessary. Those companies for investigation are mainly peacetime industrial companies, including a certain number of munitions companies, whose damage is heavy and investigation difficult. The slower the investigation progresses, the more difficult it becomes. Considering this, the investigation association had decided to finish all the investigation on the pending items by about March 1946, except for some special items difficult of correct investigation.

Summary:

It is needless to say that economic democratization is essential for the reconstruction of JAPAN as a peaceful state. A strong demand for its immediate realization is being made by the general public. What steps have been taken by the Government to satisfy this demand?

General MacARTHUR, in his interview with Premier SHIDEHARA presented five conditions for the democratization of the Japanese economic structure.

ECONOMIC SERIES: 25 (Continued)

ITEM 2 (Continued)

On 6 November a directive ordering dissolution of the ZAIBATSU was issued as an initial step toward the realization of economic democracy.

However, the Government thus far has succeeded only in drafting a plan for the dissolution of the ZAIBATSU.

Government authorities have not made any positive gestures for wholesale economic democratization, nor have they shown the slightest interest in the subject. They are absorbed in the solution of trivial matters, and seem to be reluctant to act positively to settle the graver problem, of renovation of JAPAN's economy.

The slow movement of the JAPAN'S economic structure towards the much heralded democracy is largely attributable to the various concepts of democracy existing among various classes who define democracy to correspond to their interests. Some interpret democracy as the return to pre-war conditions, while others understand by democracy a more radical, fundamental change. It is still not clear whether the people want to continue the present capitalism which is based upon the profit system, or to re-organize the economic structure by abandoning the profit system and giving the nation what it really needs.

Consequently, both the Government and the financial authorities do little more than nothing in drafting plans for a democratic structure, as directed by the supreme command, or on the demands of the people.

Young officials in the various ministries, seem to have changed their bureaucratic ideas into democratic ones overnight. They are, however, young and have a fresh idea of justice and the movement of the times. In contrast state ministers or bureau directors are more absorbed in the drafting of bills to be submitted to the Diet sessions, rather than in fundamental changes for which the young officials have an interest. This phenomenon is only a political gesture which never comes from over enthusiasm for democratization.

Within each ministry this kind of difference is often to be seen. Plans drawn up by young officials have nothing to do with those made up in other ministries. There is no relationship or co-operation among the ministries. Thus, while people hear about economic democratization, the actual situation remains unchanged.

The Agriculture and Forestry Ministry is now drafting the agricultural reform bill which is to provide for an independent farmer system instead of a tenant farmer system, and to assist tenants by a cash landlease system. The Ministry also plans to draw up a bill amending the Agricultural Association Law which aims at the reorganization of the bureaucratic agricultural associations to their former structure.

The Welfare Ministry is preparing a bill providing for the formation of labor unions, while the Finance Ministry, following the recent bill providing for dissolution of the ZAIBATSU, is studying the levying of a property tax, and war time profiteers tax. Bills being drafted by other departments are limited only to problems under their respective jurisdiction. The Ministry of Commerce and Industry is the only state department that handles a grave problem. It is now drafting a bill for

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ECONOMIC SERIES: 25 (Continued)

ITEM 2 (Continued)

JAPAN's industrial economic structure. The details of the projected hill are not known, and they have no connections with other ministries, but it is understood to contain the following items:

• 1.In order to place industrial and economic management on a basis of free enterprise, the formation of organizations which conduct operations, collaboration by or union of various enterprises, and any action which improves business, will be freely permitted. Free commercial transaction will be restored and rational demand and supply relationship will be established in the market. In such industrial and economic transactions, Government control will be at a minimum.
• 2.In order to give equal opportunities for the development of enterprises, the principle for free but fair competition will be established. Steps will also be taken to prevent monopoly in private enterprises, and unfair monopolistic control of the market. The Government, in view of the peculiarity of the Japanese economy, must conduct rationalization and improvement of the operation of medium-sized or small scale enterprises.
• 3.In management of any enterprise, a co-existence and co-prosperity principle will be adopted and in capital investment, preferential opportunities will be granted by any particular enterprise to its own employees and laborers. Opinions of the employees or laborers will thus be reflected in the operation of enterprises.
• 4.For the benefit of ultimate consumers, the Government will make efforts for the reenforcement of co-operative systems, and the thorough enforcement of state measures necessary for the correct and fair distribution of people's daily necessities. The frank opinions of the consumers on the management or operation will also be stimulated.
• 5.Any controlling measure, necessary for the smooth operation of post-war industries and for the stability of any industrial economy, will be taken by the independent organizations, which represent the will of the industry. Necessary legal privileges will be granted to such representative organizations.

It is noteworthy that some people claim the transfer of management of state enterprises such as railways and communications to civilians, as a step toward economic democratization. These opinions are welcome as they contribute not only to democratization, but also to the prevention of inflation, at the same time contributing towards the improvement of industrial efficiency.

In a larger sense, management or strict control by the state is to be regarded in the category of democratization, as long as it benefits the nation. In view of the present situation in coal and electricity, strict control such as state management is required.

In this connection, some rush to promulgate a special law, for the smooth operation of the industries and economies of JAPAN as a whole. They also point out examples of state management of all key industries in SWITZERLAND and the Bank of ENGLAND and coal mining industries in ENGLAND.

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ECONOMIC SERIES: 25 (Continued)

Extract:

The plan of establishment of Nippon Silk Industry Association. (NIPPON SAHSHI-GYOKAI) has not yet been accepted by MacARTHUR's Headquarters. The Agriculture and Forestry Ministry is about to decide whether the Silk Industry Control Act (SANSHI-GYO TOSEI-HO) must be abolished or amended.

The ministry has prepared the following bill:

Article 1: Only superior cocoons shall be sold to raw silk producers or those to whom regional government permission is granted.

Article 2: Only superior cocoons shall be used for silk production and taken over from the hand of the first assignee only by raw silk producers or those to whom regional government permission is granted. The Agriculture and Forestry minister, when it is expecially necessary to export and produce raw silk, can direct raw silk producers [illegible]assign raw silk to others to be appointed at the directed price, time and conditions.

Article 3: Raw silk producers shall submit their products, machine-spun silk, to inspection by governmental silk conditioning houses. The only exceptions are those to whom the Agriculture and Forestry Minister has given special permission. The Minister or the Raw Silk Industry Association can direct the quantity, purpose and density of machine-spun raw silk which should be submitted to inspection. Raw silk producers shall submit to directives of Nippon Raw Silk Industry Association, based upon the preceeding clause.

Article 4: Raw silk producers shall assign their products, raw silk, to Nippon Raw Silk Industry association. The only exceptions are those to whom the Agriculture and Forestry Minister gives special permission.

Article 5; The Nippon Raw Silk Industry Association cannot assign raw silk to others except of a density and quality which the Agriculture and Forestry Minister directs for the purpose of meeting home demand. The only exceptions occur when the Nippon Raw Silk Industry Association assigns raw silk to others as materials to produce silk textiles for export in exchange for a rationing ticket based on an article in the Raw Silk Distribution Control Regulations (KI-ITO HAIKYU TOSEI KISOKU), and when the Agriculture and Forestry Ministry permits.

Article 6: The Nippon Raw Silk Industry association shall export raw silk or assign others to do so by directives of the Agriculture and Forestry Minister except for raw silk which is of that density and quality directed by the same minister based on the preceding article on the provisions in the preceding article.

Article 7: Losses resulting from the preceding article will be compensated for by the Government and these must be normal losses. In this case raw silk exporters will be excepted from assigning raw silk to others to meet home demand.

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ECONOMIC SERIES: 25 (Continued)

Full translation:

Manufacturers of textile fabrics at the CHICHBU district announce that they will weave 100,000 tan (tan = about 10 yards) of striped cloth of CHICHIBU-MEISEN (a kind of common silk textile) for bed-sheet use regardless of profit as a present to the air-raid sufferers of TOKYO to tide over this winter and as a celebration in honor of the revival of the CHICHIBU textile manufacture.

The new price of CHICHIBU-MEISEN has been fixed as 40.50 yen per tan. However, according to the calculation of silk dealers, the price of silk warp has advanced from 1,200 yen to 2,000 yen, and the price of dupion woof has advanced from 850 yen to 2,465 yen, or triple the former one. And so the weaving, of one tan of the bed sheet cloth requires 9.88 yen for 38 monme (1 monme = 0.13275 ounces) of silk warp and 12.81 yen for 90 monme of dupion woof bringing a total of 22,098 yen and leaving a balance of 17.802 yen. The balance is too insufficient to cover a reduction in thread, tax, managing expenses, wages, and living expenses and it will go into red figures.

Extract:

As it is feared that a great food catastrophe will come next spring, a nation-wide movement is being organized, the essence of which is that on one hand the farmers are requested to fill the proportionately heavy quota of 30,000,000 koku of rice out of the poor harvest of this autumn, and, on the other half starving consumers are requested to be patient and quiet. The outlook for the movement is not bright, but if it fails the very foundation of the nation will collapse.

The first requisite of this movement is to understand the mental makeup of the farmers and attack the problem of quota apportionment with skill and statesmanlike determination. An appeal may be made to the brotherly love farmers, but how can this appeal be substantiated? When the cities and the country are divided against each other, the nation will fall.

Heralding the mationwide movement, Mr. MATSUMURA, Minister of Agriculture, is now visiting farm areas. This editor who followed him on the trip shall hereunder convey to the readers what he has learned during the [illegible]trip.

Farmers in general are unskilled in espressing their views; hence, in order to understand what they wish to say, we must carefully analyze their rather halting expression of opinion.

Of course, there are profiteering farmers. It cannot be denied. But on the whole the farmers are honest and are very willing to sell to the Government at its price. Nevertheless they demand fair and well calculated apportionment.

As a matter of practice, the exact estimate of the crop is very difficult.

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ECONOMIC SERIES: 25 (Continued)

ITEM 5 (Continued)

Generally, the actual harvest in a lean year less this is lees than estimated. In practice the final estimate is the job of public officials, whose estimate cannot necessarily be exact to the last minutia. This is one source of distrust of officials by the farmers, but the true sources of distrust are the irresponsibility and inefficiency of officials in their execution of public commitments. This fall the Government announced more "democratization" of allotment committees and of allotments to individual producers instead of to towns and villages. But the "democratization" of the committees, as well as the reduction in the number of the public officials, is still in the making. This is a clue to the solution of the farm problems of JAPAN.

What the farmers really want are fertilizer, farm tools and instruments, and working clothes. These wants symbolize the simpleness of the farmer life.

The farmers, this editor interviewed, showed without exception their willingness to fulfill their quotas provided the counter-distribution of farm necessities is assured.

The Government announced that the fertilizer industry would be placed on the emergency priority list, but for the manufacture of lime we need coal, and what is the present condition of the coal supply!

As to the farm tools, the nation has to mobilize its industrial capacity which once produced airplanes and other products of world standard, and by no means shall it be left to the hands of village smiths alone.

The farmers who are usually indifferent to current news are eagerly watching the Government proposed land bill. Some people even observed that since the land reform was announced, the mental state of the country people has changed almost overnight. They are now willing to invest in fertilizer, farm instruments, or what ever else might contribute to improve the land which, it seems, will be assured as their holding. The landlords also do not seem to resist much this time.

One reason that Mr. MATSUMURA' s visit to farm areas has been rather successful is that the farmers look upon him as a reformer. Certainly it is nigh time to strike while the iron is not.

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