Press translations [Japan]. Economic Series 0172, 1946-01-17.

Summary:

No measures will have any effect in the present food crisis unless some effort is made to increase the production of natural fertilizer. The quantities of chemical fertilizer required in MIYAGI Prefecture were originally estimated to be 31,920 tons of ammonium sulphate, 36,720 tons of superphosphate of lime, and 8,120 tons of potassium salt. The actual distribution figures, however, were only 60 per cent of the above even in 1940; in 1945, the figures were only 7,46l tons of ammonium sulphate and 1,407 tons of super-phosphate of lime, while potassium fertilizer was not distributed at all.

The majority of fertilizer factories which used to supply MIYAGI Prefecture are now meeting with great difficulties due to air raid damage and the present labor, coal, and transportation shortages. Therefore, we cannot expect in increase in production in those factories. The Government is aiming at the production of 750,000 tons of ammonium sulphate in 1946, 1,250,000 tons in 1947, 1,500,000 tons in 1948 and 2,000,000 tons in 1949. The above figures, however, are very far from the actual figures for fertilizer available in JAPAN. Even before the war, the actual amount of ammonium sulphate distributed was 4,960,000 tons.

Furthermore, as we cannot hope under the present circumstances for phosphorous and potassium fertilizer, the production of chemical fertilizer in the future does not warrant optimism. With this in mind, the MIYAGI Prefectural authorities have scheduled an increased production of natural fertilizer in order to be independent of chemical fertilizer. Their aim is the production of 530 million kan (370 kan per tan) of composite fertilizer. Increased production of green manure end vegetation ashes and the utilization of other natural fertilizers is also an urgent necessity.

Extracts:

By the Potsdam Declaration, JAPAN is permitted to retain those industries necessary for the maintenance of a minimum economy and for making it possible to pay reparations. For this purpose alone JAPAN will be allowed to receive overseas materials. Hence, in the future she will be accepted as a nation participating in foreign trade.

ECONOMIC SERIES: 172 (Continued)

ITEM 2 (Continued)

In the choatic days just after the end of the war, no one had formed any conception regarding what would become of JAPAN'S foreign trade. Curtailment of overseas trade was anticipated then and the Trade Division in the Ministry of Commerce and Industry narrowly escaped elimination at the time of the drastic organic changes in the Ministry.

In a directive issued on 10 October by Allied Headquarters to the Imperial Government, JAPAN was directed to establish machinery which would handle the collection and distribution of imported goods to nationals at fair prices taking into account current wages. Another directive issued from the same source on 24 November said that JAPAN will be allowed to import food, cotton, petroleum, and salt. Thus, a way to foreign trade was cleared and three days after the directive, the Diet agreement was reached to establish the Board of Trade.

The Board's functions were set forth as follows: (l) It will assume full responsibility to Allied Headquarters as the general machinery for the administration of JAPAN's import and export of food; (2) It will participate in trade administration, which has been so far performed by the Commerce and Industry Ministry and it is supposed also to concern itself with affairs under the Finance Ministry's jurisdiction, such as the importation of salt; (3) In fulfilling the Board's responsibilities, a committee consisting of officials from the various ministries concerned will be set up; its function will be to formulate and put into effect plans for the distribution of imported goods; (4) For the time being foreign trade will be administered jointly by Allied Headquarters and the Board of Trade, but actual trade will be done by traders whenever possible; and (5) The settlement of the balance of trade will be handled by the existing "Special Account for the settlement of the balance of Foreign Trade" of the Finance Ministry.

The Board’s job is to appeal to Headquarters for importation of necessities from Allied Nations and to secure goods to be exported in turn. But since the outbreak of the war, industries connected with foreign trade were completely neglected, including the most important cotton spinning industry, and this will make recover difficult. JAPAN's stocks of exportable goods do not amount to more than 470 million yen. So it remains for us to produce the major part of the estimated 3 billion yen of goods to be exported.

We are ready to export objects of art in return for food, though some difficulties in their appraisal are expected, if accepted by Allied Nations. We are looking forward to the exportation of manufactured articles made from raw materials in which we are self-sufficient, JAPAN is eminently well-suited to the production of such goods and we should have few rivals. These will be products such as china, lacquerware, sculpture, metallic work, and bamboo works of higher quality than those of prewar times.

The Board recently has asked manufacturers and prefectural officials concerned to co-operate in carrying out the program. The Board, furthermore, is studying the improvement of institutions in charge of the guidance of manufacture and the use of exhibition houses. The Revision of laws and regulations is expected in order to let the Board have role authority in trade administration and the distribution and collection of goods for foreign trade. For instance, the Board's running expenses are to be met tentatively by 50

- 2 -

ECONOMIC SERIES: 172 (Continued)

ITEM 2 (Continued)

million yen of the Special Account for Settlement of Foreign Trade. This account, however, belongs to the Finance Ministry, and therefore, are Imperial Ordinance or a departmental ordinance is necessary if the account is handled by the President of the Board of Trade. The Bank of JAPAN, which will manage the account, will also be asked to form a clear plan. Revision of laws and regulations are being studied by the Ministries concerned.

Meanwhile, the co-operation of traders is anxiously requested in the coming foreign trade, for it is utterly impossible for the Trade Board to do all which thousands of traders used to do. MUKAI, Tadaharu was appointed president of the Board and it is anticipated that from now on more non-official persons are to be invited to sit on the Board.

Full Translation:

The Production Committee of the Telegraph Wire Association (DENSEN KYODO) held its first meeting on 12 January 1946 and discussed the assignment, production methods, types, and members of telegraph wires to be manufactured and measures to be taken for regular production from January to March as decided by the Commerce and Industry Ministry.

The Commerce and Industry Ministry estimated that required production of the following five kinds of materials would be 8,400 metric-tons: rubber-insalated wire, cotton-covered wire, power cables, communication's cables, and base wires. These will be assigned to the transportation offices and companies, su[illegible]pbuilding companies, communications offices and companies public works and building offices and companies, and for other purposes affecting the people's daily life.

The offices and companies which are allotted these wires and cables, are to distribute them to consumers. The consumers, however, are to do business directly with the wire producers.

DISTRIBUTION "X"

- 3 -