Press translations [Japan]. Economic Series 0128, 1946-01-07.

Full Translation:

The production of timber and other basic materials must be speeded up for reconstruction and rebuilding. However, the lumber output has not been raised since the end of the war because of several factors, including the lack of initiative to produce, the food shortage, and the difficulty in regulating and controlling timber. Available timber which is being used or will be used is estimated at about 10,000,000 KOKU to 15,000,000 KOKU. If this timber is consumed, we will have a period of timber shortage. Even if the timber is rationed, it is said that a severe shortage of timber will be unavoidable.

The decrease in lumber products in Autumn of this past year will greatly affect the future supply of timber. The agriculture and forestry authorities are going to establish the timber supply and demand control conference so as to increase producing power. However, even if the timber producers produce at top speed, the supply of timber cannot be expected to increase because of the shortage of food and the fact that the timber must be taken from deco woods. The authorities desire to control the actions of the lumber industry in order to prevent the timber producers from using the lumber too freely.

Summary:

The democratization of Japanese economy does not only aim at wiping out the remnants of feudalism but also at establishing an economy in which the people control capital rather then find themselves controlled by it. What does such a program comprise?

The Release of labor and capita1 from the shackles of .autocracy has been ordered, by Allied Headquarters. Rule over Japanese economy by the ZAIBATSU is to be relinquished. How to dispose of the tremendous capital of the ZAIBATSU still remains an important problem. The greater part will be confiscated for war profits or property taxes, but the rest must not be allowed to be used for the re-creation of any other form of ZAIBATSU.

Labor unions are to be legalized. As soon as factory or office workers can have a strongly organized body, they can release themselves from their fetlers and take the initiative in the management of an enterprise. The most important role to be played by labor and capital in the course of democratization of Japanese economy is in the uprooting of burc[illegible]ucratic autocracy.

As has been stated already, funds, materials, and labor must be

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ITEM 2: (Continued)

arranged and organized throughout our nation1 economy as reasonably as possible. It may be impossible at present for the national economy to run as planned. It may, perhaps, have to be left to the free and creative activities of individual enterprises. A considerable number of Government sponsored associations have been and are reforming themselves toward self-control in their own fields.

There must be no extremely small enterprises, as once existed, in a new Japanese economy, in order that the economy will function without waste. Japanese economy must be organized through enterprises neither too small nor too gigantic. Extremely small enterprises are, in reality, growing continuously, and this tendency cannot be suppressed. These weak enterprises, therefore, must be protected from being oppressed through usurious rates of interest or capital, and it is desirable for this purpose to combine these weak enterprises into some association, so that they can more easily secure funds and materials and sell their commodities more easily.

BUREAUCRATIC SFLF-SATISFACTION TO BE ELIMINATED

As frequently mentioned above, every possible waste must be cut down to reconstruct a new Japanese economy. Fundamental enterprises like coal, iron, banking, communications, and so, should not be left to the discretion of selfish individuals. That is to saw, any form of Government management is desirable to rally our feeble economy. However, Government management is often accompanied by bureaucratic evils. In order to eliminate these evils civilian representatives may be selected from every field of economy. These representatives, needless to say, must reflect the public's wishes.

AIM AT SEPT[illegible]ZED MANAGEMENT OF ENTERPRISE

A fair share of the value of their production must be distributed to workers so the that they can survive under the existing conditions.. To insure that this is done, workers must participate in the management of enterprise through collective bargaining. The development toward their participation in management is most desirable in new Japanese economy and must be positively supported because workers' zeal and application alone can systematize the management of enterprise.

In conclusion, every routine problem arising in the course of the democratization of Japanese economy must be solved quickly and reasonably. At the same time, and in the same way, the socia1 and political fields must be revolutionized along democratic lines. This is the most fundamental factor in the democratization of Japanese economy.

Summary:

Every industry was affected by a number of labor restrictions and laws during the war. Labor had no opportunity to develop unions. These restrictions and Laws however, were removed at a moment's notice soon after the end of the war. Labor unions have been legalized, and collective bargaining by employees is permitted by this legislation. JAPAN has taken the first step toward her democratization in the field of labor.

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ITEM 3 (Continued)

As opposed to this, the crowds of unemployed in the streets are unwilling to be employed. For, if employed legally, the price of food would be quite beyond their reach. In reality, however, there is an urgent need for the setting up of a relief policy for the unemployed. The relief policy has two remedies for unemployment: the prevention of unemployment and rescue or relief. There are labor exchanges for the former and there are government public works end an unemployment insurance policy for the latter.

The Government has been sparing no effort toward the full employment of labor since the termination of the war. It set up the Central Relief Committee of the Unemployed (CHUO SHITSUGYO TAISAKU IINKAI) on 3 December last year. The committee has set up a sub-committee for the temporary and long term relief and rescue of the unemployed skilled class. This committee is expected to start its business with the new year. For this purpose, the necessary information has been collected; results of the committee's investigation have been reported as follows:

Finance and Banking —- Banks are afraid to give credit because of the uncertain future of industry and the present Enterprise Permission Law (KIGYO KYOKA-REI). As a result, business is bound to be slack.

Commerce and Industry —- Industry will be ham-strung unless there is an improvement in coal production and the raw materials situation. The Commodity tax is the main reason for slackness in the free market. We can see a clear instance of this in the case of department stores and stall-men.

Agriculture and Fishing —- Fishing also has its own problem: How to obtain its required materials and fuel, and how to build and repair ships. But even when these obstacles are overcome, the fishing industry will require a great deal of labor.

War-Reparations Industry —- The War-Reparations industry will depend upon the equipment left over after the removal of industry's war potential. This sub-committee has understood what the aims of the unemployment relief policy should be.

Long term Policy of the Government —- The Government urgently requires a long term policy to deal with unemployment. Let us take a glance at the Government programs:

Home Ministry —- The Ministry has made a four-year program, aiming at public works to repair rivers, roads and levees, with a budget of 6,260 million yen. Some 670,000 laborers will be required annually.

Agriculture and Forestry Ministry —- The Ministry is setting up a plan, (a) to develop agriculture, forestry and fishing and thus to make substantial progress in allied industries (b) to produce large quantities of fertilizer, implements and the necessary machines and to modernize their equipment and (c) to reclaim vast areas. The number of laborers required equally for this purpose is estimated at some 3,600,000.

Other Ministries —- When works are decided upon by the Reconstruction Board (FUKKO-IN) and the other Ministries, the unemployed will have work for several years.

One problem remains: the skilled class numbering 1,400,000, are now unemployed. The Government must make the best use of the brains of these unemployed people in order to reduce the cultural inequality between urban and rural communities. This inequality would be removed by educated farmers. Unemployed educated people must be subsidized to become farmers. The remainder of this class

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will help the work of' a greater number of civilian and governmental institutes, as JAPAN is very short of these organizations. Technicians can be leaders in the technical world of smaller industry. Current conditions permit no delay in the realization of these aims.

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