Press translations [Japan]. Economic Series 0185, 1946-01-20.

Summary:

It is not pleasant to live under excessive Governmental control, as was my experience during my stay in GERMANY from 1922 to I923. I am afraid the same unpleasant living conditions may develop here in JAPAN in the near future. In GERMONY there were plenty of materials but the people did not have sufficient buying power, while in the JAPAN of today the people have sufficient buying power but there are no materials. This is expecially true of food. This means that inflation is gradually setting in, though it has not yet fully appeared. However, it is sure to appear in the near future, and when it does the people are aft to speculate wildly and then suddenly become down-hearted, thus presenting a dangerous future for JAPAN. Under these circumstances, it is unreasonable to expect a steady and rational political movement on the part the people. This is because of the uncertainty of living conditions. Unless these difficult living conditions are eliminated no powerful post war political action can be expected from the Japanese people. But if conditions improve the people are certain of regaining their political composure.

The solution of the food crisis is of vital importance today. Naturally ways and means of increasing the amount of available previsions must be found, but the immediate problem is one of distribution and rationing of those provisions on hand.

The problem of rationing is acute today because of the many confusing methods of control previously used to distribute those provisions. In JAPAN today there is an acute production shortage; therefore, quota system to the farmers is out of the question. To promote economic efficiency a competitive profit system is necessary.

The present socia1 phenomenon of traffic confusion is a result of persons going out to rural districts to buy provisions, in order to take advantage of the food shortage and make large profits on their purchases. They take these trips to the rural districts because no free market exists today due to the food shortage. Only through the incentive of profit are provisions collected and starvation averted. This is where the error of excessive Governmental control lies; namely, in not taking this fact into consideration. If free buying were allowed, the consumers themselves could go out to the rural districts to buy their food. This would avert decomposition of provisions and the starvation of the people.

ECONOMIC SERIES: 185 (Continued)

ITEM 1 (Continued)

There are three ways of collecting materials for consumption. One is the use of a free market, the second is Governmental control and the third is purchase by the consumers themselves. The first is inadvisable because of its inflationary tendencies and the second because of its waste and inefficiency. Hence, the third is the only alternative left. In short to save people from starvation the only recourse is to allow the consumers free buying power and to set up consumers co-operative unions throughout JAPAN. This will serve to prevent profiteering in the black market, retard the inflationary trend of today and feed JAPAN'S starving millions.

Summary:

Some time ago Allied Headquarters issued a directive ordering the liquidation of the fifteen major ZAIBZTSU. In the near future, according to an informed source, another order will be forthcoming, providing for the liquidation of about fifteen more large firms.

It is evident that Allied Headquarters actually desires that the ZAIBATSU and other large firms make clear their own share of mar responsibility and carry out the necessary r forms by their own free will. Unfortunately however, the leading circles of our financial world hesitate to do so, and these continued directives become necessary. In a recent YENAN broadcast, IKEDA, Seihin, FUJIWARA, Ginjire, KYOKO, Ketsu, FURUTA, Shunnosuke, NAKAJIMA, Chikuhei, OKOCHI, Masatoshi, AYUKAWA, Gisuke, and others were named as the principal war criminals in JAPAN's financial circles. I wonder, however, if these few people should assume the whole burden of mar responsibility, which rested with JAPAN's wartime financial circles.

Here I recall to mind those who belonged to the Key Industries Council (JUYO SANGYO KYOHIKAI). The following is a list of the representative members: KYOKO, Ketsu, SHIBA, Koshiro, WATANABE, Gisuke, MATSUMOTO, Kenjire, ITO, Bunkichi, ASANO, Soichiro, AKIYAMA, Shohachi, SAITO, Kosuke, HARA, Seimei, YASUKAWA, [illegible]aigora, YAMAGUNCHI, Kisabure, SUZUKI, Gen, MURAKAMI, Giichi, OYA, Atsushi, SUZUKI, Kumatara, SEKI, Keizo, FUJITA, Masasuke, ISHIKAWA, Ichiro, HAYASHI, Zenji, KADOTA,[illegible]geru, SHIMIZU, Yasuji, ARAI, Shoji, NAGATA, Masakichi, TAKASHIM., M[illegible]ol, TAKEUCHI, Yoshikichi, SHIMIZU, Mitsuyoshi, KANEKO, Kiyota, ISHIDA, Reikichi, KATO, Kyohei, MURAKAMI, Toshitaso, ASANO, Ryozo, OKOCHI, Masatoshi, KODERA, Genkichi, GODO, Takuo, SHIMADA, Katsunosuke, TERAl, Hisanobu, MANGO, Saburo, FUJIYAMA, Aiichire, and FURUTA, Shunnosuke.

This list is not an exhaustive one to be sure; every name on it, however, should be eliminated from the financial world of the new JAPAN. As members of the Key Industries Council these men cooperated to the full with the military Government in establishing and putting into practice industrial policies which promoted JAPAN's war effort, and they must, consequently, assume their share of war responsibility.

In the future, JAPAN's financial world must be completely rejuvenated. It is hoped that capable, patriotic young men will appear on the financial scene. Some of those who have joined the Tuesday Society (KAYOKAI) may be expected to take leading roles in the country's future financial development. Among these men are: SHIBUSAWA, Keizo, FUJIYAMA., Aiichiro, TAKATSU, Narao, MOROI, Kanichi, MASADA, Eizo, AOKI, Kinichi, SUZUKI, Michiyo, UEMURA, Kogoro, YANO, Ichire FUJINO, Katsutare, MORI, Akira, NAKAJIMA Seiichi, YASUDA, Hajime, YUWASAKI, Tsuneya, FUJISE, Masajiro, MATSUMOTO, Kenjireo, YASUDA, Hikoshire, FURUKAWA, Jujien, KUHARA, Mitsuo,

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ECONOMIC SERIES: 185 (Continued)

ITEM 2 (Continued)

YAMASHITA, Tare, KOIKE, Koichiro, MATSUTANI, Genzo, NAGANO, Shigee, AZO, Tagakichi, SHIMIZU, Tagakich'i, SHIMIZUM Yasuo, MORI, Isamu, UEMURA, Taiji,

It should be noted, however, that among those men are to be found a number of incompetents who owe their positions entirely to the wealth and reputation of their fathers, and who are barely able to hold their own in the Nation's post war economy.

Full Translation:

As the food problem becomes increasingly serious, discontent with the farmers is gradually rising among city dwellers. It is a well known fact that the majority of city dwellers are literally h[illegible]ing on the verge of starvation. Everyone, to be sure, deplores the fact that Governmental authorities are incapable of coping with the situation, and that want profiteers, by underhanded methods, are buying up goods. On the other hand, the resentment of city residents against farmers, who greedily demand illegal black market prices and goods in exchange for food, is growing daily. In spite of this resentment, because they must eat in order to survive, most city dwellers humbly submit to the farmers demands. At the present time the city population, made up for the most part of low-salaried workers, are, 30 to speak, "eating up their subsistence;" they are using up their savings and exchanging their goods for food, Everywhere these desperate workers are saying, "just wait until we have a chance to get back at these farmers'; and talk of a "city rebellion" is spreading from street to street.

We do not hesitate, of course, to extend our sincere thanks to the many honest farmers. Though rice production for this year is optimistically estimated at 46,000,000 koku, actual production is expected to fall considerably below this figure. The total amount to be delivered was set at 30,000,000 koku. Having already submitted their crops of wheat, potatoes, and sweet potatoes to the Government, the farmers must now bear this huge additional burden.

In meeting this quota, farmers are handicapped by a serious labor shortage, and little or no fertilizer is being distributed. We are heartily sympathetic with the farmers who have produced their crop despite bad weather and severe labor shortage, and must still deliver two thirds of their crop to the Government. It goes without saying that their crops are the result of their own efforts; it is also an undeniable fact, however, that among the various strata of our society, with the exception of a portion of the priveleged classes, the farmer at present occupy the most favorable position. The farmers, who along with the war profiteers, increased their wealth during the war and are continuening to increase it, may be said to constitute a new privileged class. This, at least, is the opinion commonly expressed by the general public. Feeding from the purchasing parties who go out into the country in search of food, it is reported that farmers in the prefectures adjacent to the capital earn between 500 and 1,000 yen per day. This amount is received for the sale of sweet potatoes and other vegetables. When, in addition, we consider the black market sale of rice, wheat, and other cereals, we can easily imagine the vast sums which the farmers acquire.

It is the consensers of public opinion that excess war profits should be confiscated. When we make this statement, needless to say, we refer to a certain portion of the munitions manufacturers who made huge profits from the war. What action is to be taken against them has not yet been definitely decided; we should remember, however, that their leaders,

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ECONOMIC SERIES: 185 (Continued)

ITEM 3 (Continued)

the ZAIBATSU, have already been ordered dissolved. Next to the industrialists, it is the farmers whose wealth has increased as a result of the war. From the outbreak of the war, the agrarian class, under the encouragement of the militarists and bureaucrats, were allowed to carry on production with the aid of city dwellers and school boys; and it can easily be imagined that during the war, they obtained most profits from the sole of their produce at black market prices. From this point of view, then, farmers may be said to bear a share of the war responsibility along with the militarists and bureaucrats.

Now these farmers, who themselves bear a share of war responsibility, are continuing to exploit the urban population, which is hovering on the verge of starvation. The position of these city dwellers is becoming more and more desperate. They must spend their last penny for food in order to survive. Of course, the Government is to blame for its inability to cope with this situation. We should like to know, however, if the farmers arc going to show any consideration for the city population who, it must be admitted, have paid the greatest price for the war.

We are wondering, too, if the above-mentioned estimate of rice production for this year is not open to question. Even the poorest crops of previous years have not fallen below 55,000,000 koku. When we think of it, it seems evident that in the past few years, the annual rice production has been consistently underestimated.

The farmers will perhaps argue that Government officials are incompetent and that war profiteers have made exerbetant profits. Nevertheless, the consumers are the farmers' fellow countrymen and the bulk of them are city dwellers. Moreover the majority of the city population suffered to a greater degree from the damages and consequences of the war. Now, in spite of the untold hardships which the city population has endured, the farmers threaten to strip these suffering people of their last penny. To exploit them in their present misery seems cruel and inhuman. Thus the farmers, who once were considered sincere and innocent of any guilt, have come to be regarded as war criminals, especially since the war is ever. Who will say, when he considers their present behavior, that the farmers are worthy of participating in the building of a new JAPAN?

To be sure; the farmers are quite correct in saying that they were "taken in" by the militarists and bureaucrats, that their enthusiasm for submitting crops was considerably dempened by the actions of incompetent bureaucrats, and that war profiteers were addicted to black market activities; nevertheless, they must remember that the larger part of the consuming class is now only a step away from starvation. We therefore appeal to the farmers on behalf of the masses to make every effort to submit their crops, so that their fellow countrymen will not be allowed to starve.

The farmers are to be congratulated on the SCAF directive of 8 December ordering democratization of agrarian lands; they should remember, however, that more and more is expected of them by the people of JAPAN.

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