Press translations [Japan]. Economic Series 0096, 1945-12-22.

Summary:

In consideration of the slow recovery of industries from chaotic conditions despite repeated announcements promising a rosy industrial future, experts from various fields were invited by the MAINICHI to hold a round table conference to discuss current problems.

The meeting was opened with a discussion by Chairman SATO, head of the Economics Section of the MAINICHI, on the relationship between public finance and economics. [illegible]e presented the question of whether or not, JAPAN could industrially stand on her feet again.

NAGASAKI, Eizo President of the SHOWA Petroleum Co. (SHOWA SEKIYUSHA) opined that delay in industrial reconstruction was caused primarily by ambiguity concerning future remundration to industries. No definite forecast can be made on compensation for industrial loss, no statement of financial conditions is available, and the stock market is not operating. Ambassador PAULEY'S statements have so far, been rather abstract. Moreover, the war profits tax and capital levy are still in the nebulous stage. In such a situation the ardent desires of industrialists have no means of expression. Chaotic economic conditions such as prevailed in GERMANY after World war I should, of course, be warded off by early redemption of national bonds, but the economic welfare of industries must be given first priority, other wise, anxiety about public finance will nip industrial recovery in the bud.

Secondly, industrialists are also puzzled by lack of decisiveness about the future of materials, prices of goods, and salaries or wages. Serious consideration should be given particularly to the prices of consumers commodities at the first chance, for the safety of business and the welfare of workers depends on this. Mr. SATO added that unless responsible industrialists are not encouraged to resume their activities, the situation will result in economic malnutrition for the Nation.

At this point YOKOYAMA, Goichi, assistant editor of the MAINICHI asked what kind of measures are to be taken to adjust relations between public finance and industrial economics. In answer, ISHIKAWA, President of the Chemical Industry Control Association (KAGAKU KOGYO TOSEIKAI) stressed the urgent need for a quick solution of the food problem and for the Government to demonstrate its willingness to compensate the industries.

Then MORI, President of SHOWA Electric Co. (SHOWA DENKO KABUSHKI KAISA), insisted on the necessity of mature deliberations before realization of the proposed tax bill so as not to curtail production.

ECONOMIC SERIES: 96 (Continued)

ITEM 1 (Continued)

MINOBE, Ryohichi, MAINICHI, advisor suggested the consideration of Economics and public finance at the same time by the country's top experts; to which SUZUKI, Shigesaburo, member of the executive committee of the Social Democratic Party, voiced approval. He also warned the government against putting too much stress upon national finance while sacrificing industrial activities.

KIDO, head of the Price Bureau of the Finance Ministry, stated that the Government should attempt to prepare a complete industrial program before any other step is undertaken. MINOBE, taking up the issue introduced by KUDO, asked what was meant by the adjustment of prices; should the inflated value of money act on prices, or should prices be manipulated by means such as the government measures taken during the war? KUDO replied that he farored setting up well balanced prices at rather high level since it is not possible to reduce prices. YOKOYAMA asked how the national economic program is developing, and NAGASAKI answered that he had a plan covering all economic fields of the nation and not any particular industry. KUDO Proposed the need of the participation of experts in forming such an important program.

MORI interrupted, saying that we should start production of necessary goods regardless of difficulties. YOKOYAMA expressed the need for encouraging the production of staples such as coal, salt and fertilizers. He also stressed the need to permit a special release of food and funds. SUZUKI and ISHIKAWA agreed with him.

MORI asserted that he could start the production at once if his plant were supplied with men and capital. MINOBE took up the price problem again, YOKOYAMA said that the high level of prices which KUDO favored as an inevitable temporary step, must be evaded as being likely to lead to an expansion of credit, which once begun is hard to control. NAGASAKI, here, disclosed that he considered the 400 per cent estimated price increase an accurate estimate, and suggested that salaries should be increased to certain extent. YOKOYAMA interrupted KUDO'S statement with the remark that the nation's income should not necessarily be increased in exact proportion to the price index, but that, other things being equal, when prices are doubled, the enterpreneur's profit will be doubled. This idea was shared by NAGASAKI.

YOKOYAMA, retrieving the problem of financing important industries, said that if the new yen is poured into essential industries, a move which the Government is not likely to make willingly, they will be steadily rejuvenated. The discussion then turned to foreign trade. MINOBE expressed doubt as to whether the country would regain its old position in the cotton industry, in which prosperity was attributed to low waged female cotton mill hands. If wages are forced up by trade union action, it will not be able to meet Lancashire and Chinese competition. HONIDEN, Yoshio, managing director of the textile Industry control Assn (SENI TOSEI KAI), asserted that the textile industry would appear in the world market again if the exchange rate between the dollar and the ten remained at 1 to 15. But, he added, in foreign trade, JAPAN will have to resort to dumping. He added that there is no cause for anziety about our future export because of improved Japanese worker's standard of living, despite the struggle likely to be made by trade unions. It is not practical to imagine that our workers will live on a scale equal to that of English or American workers.

- 2 -

ECONOMIC SERIES: 96 (Continued)

ITEM 1 (Continued)

YOKOYAMA, discussing reparations, stated that he had formed same conception of the reparation problem. HONIDEM expressed his desire for JAPAN to be allowed to build as large as 5,000 ton class ships. SATO raised the problem of workers participation in business, citing a case in which an English coal minors union once took the initiative in lengthening their own working hours from 8 to 9 to cope with the then existing national emergency. HONIDEN expressed his desire that the Nation be provided with more accurate figures on which economic activities may find a guide for activity. Workers, too, should be accurately informed about the industrial situation. They will then work with greater appreciation of the problems under given conditions. Many baseless ideas will be propagated unless more concrete basic data is made available to the men who do the work.

NAGASAKI discussed the desirability of hereafter basing labor union activities on a knowledge of industrial problems. SUZUKI insisted that workers be given adequate incomes in order that all amy benifit. In this way, the workers sense of responsibility will be enchanced. SATO proposed that in place of the official control there should be self control, though, in NGASAKI'S opinion, its success is doubtful. SUZUKI spoke in favor of forming a socialistic Economy, fr[illegible]from war time control.

Participants

ISHIKAMA, Ichiro, President of the Chemical Industry Control Association (KAGAKU KOGYO TUSEI KAI)

HONIDEN, Yoshio, Managing director of the Textile Industry Control Association (KAGAKU KOGYO TOSEI KAI)

NAGASAKI, Eizo, President of SHOWA Petroloun Company (SHOWA SERIYUSHS) MINORE, Ryokichi MAINICHI Advisor

MORI, Akika President of Showa Electric Co (SHOWA DENKO KABUSHKI KAISHA)

SUZUKI SHIGESABURO, Member of the executive committee of Japan Social Democratic Party

SATO, (First name not given) - Head of Economics Section of MAINICHI SHIMBUN, Chairman of meeting

YOKOYAMA, Goichi-Assistant Editor of MAINICHI

KUDO, Shoshiro-Head of Price Bureau (BUKKABU) of Finance Ministry

Full Translation:

The yield of sweet potatoes in 1945 is estimated at 1400 million kan, and the quantity really committed to delivery by the farmer up to the present, that is, at the end of November, 1945, amounted to 250 million kan. Delivery to KYUSHU resulted in much less than generally expected. There has been little demand on the market up to now.

The cause would be ascrived to poor crops in general and the black market. The latter is run by large scale black marketeers and personal in mine industries. If the condition is not checked, the total amount of delivery from December 1945 to March 1946 will be at most 100 million kan, so that the total delivery in 1945 will be 3,500 million kan.

- 3 -

ECONOMIC SERIES: 96 (Continued)

ITEM 2 (Continued)

Farmers seem to be meeting all allotments of dried sweet potatoes to be delivered in 1945, a total of 180 million kan, according to the program. The potatoe Company (IMORUI KAISHA) has been committed solely to have charge of the transport business on behalf of producers, dealers and refiners.

DISTRISBUTION "X"

- 4 -