Press translations [Japan]. Economic Series 0233, 1946-01-30.

Full Translation:

Regulations relative to the application of the Labor Union Law are now hurriedly being written by the Legislative Bureau. After the necessary negotiations with the quarters concerned with the budget, it will come into effect about the middle of February, a little later than originally expected.

The regulations provide in detail for the items prescribed in the Labor Union Law, including provisions dealing with the joining of unions by Government officials and by those participating in business management and deals also with the organization of the labor committee. As to the union membership of officials, it is prohibited that strikes by officials develop into political movements, or that Government officials join any union but one consisting of Government officials. However, it is not prohibited that their labor union co-operate with other unions or for it to join a united group of unions. Strikes by officials are permitted only where arbitration or conciliation has failed. In addition, it is provided that the administrative office has jurisdiction over strikes by officials. As for the labor committee, the central labor committee is to be established in the Department of Welfare and a local labor committee in each prefecture. In addition, regional labor committees are to be set up in each area where there is an Employment Office (KINROSHO) and a special labor committee is to be set up to manage special affairs.

The central committee is to be composed of about 21 members, the local committee 15 members and each of the regional committees and the special committees of about nine members. Their term of office is limited to one year. Each committee is to be composed of an equal number of representatives of labor, capital and neutrals. The chief of the committee is to be chosen from among the neutral committeemen through mutual election by all the committeemen. The head of the committee can cast a vote in case of a tie. The selection of suitable persons for these committees is now being made. It is most desirable that a selection be made in such a manner as t reflect the whole will of the laboring class. The influence of bureaucrats must especially be avoided.

In foreign labor organizations, what corresponds to our labor committee has generally been formed naturally through nation-wide union movements. In contrast our labor committee is being organized at the very beginning of the union movement. It has not the nature of an organization employing collective bargaining on a national scale but is rather tinged with official color. In fact, it is to be the judge of the qualifications of a labor union and has also great authority in arbitrating labor disputes. Considering these facts, it needs to be much emphasized that committeemen should be selected with

ECONOMIC SERIES: 233 (Continued)

ITEM 1 (Continued)

great care. Next, the Labor Conflict Arbitration Law, which is closely related to the labor Union Law, has proved to be a dead letter in that it has been employed only several times since its enactment in 1926. Its revision has been under consideration by a small committee from the Labor Law Conference since the 28th of last December. The draft of a report will be submitted to the Welfare Minister in the near future. A bill will be proposed at the extraordinary session of the Diet to be held after the general election. Expanding the [illegible]of arbitration of labor conflicts in the public enterprises and strengthening compulsory arbitration is being considered.

The following are the essential points of the draft now under consideration: (1) The Labor Committee will become the main agency for labor arbitration by the transfer to it of the function of the arbitration committee which is prescribed in the Arbitration Law. (2) In cases where [illegible]is unacceptable to either side, the matter is to be decided by public opinion, that is by a general vote of the laborers. (3) A court for Labor Disputes (RODO SHIMPANJO) will be established as an agency for handling labor conflicts, having the power to restra[illegible] [illegible]side

As might be expected from the [illegible]that the present Arbitration Law was instituted as a [illegible]for the abolished 17th provision of the Peace Police [illegible], which [illegible]suppressed labor movements, it too is of a reactionary character. A drastic revision of it is much needed. The social function of the arbitration law is harmonizing the demand of Laborers with the interests of the public who suffer most from stoppage of public enterprises. The success and failure of this law defends upon the manners in which the strike is handled by whose charged with the responsibility of administering the Law.

Full Translation:

The withdrawal of the deposits in banks and the [illegible]dency to change money for goods among the people has been greatly aggravated, since the publication of the three Postwar Financial Readjustment Taxes, namely the [illegible]Tax, the Corporative Wartime Income Tax, and the Private Increase Property Tax. And the process of exchanging money for goods has been intensified more and more in inverse proportion to the decrease in production, and there is no knowing where it will stop. One of the purposes of establishing these taxes has been to absorb the purchasing power of the people since the end of the war. This brought about the people's feeling of despair towards holding properties, which made them conceal their properties to avoid taxation. Meanwhile there prevailed a tendency to buy consumable goods, as well as to spend money extravagantly.

The Government has been deliberating upon counter-measures to cope with this financial situation and is ready to enforce the three taxes immediately after their approval at the forthcoming Special Diet Session. The Government first of all intends to levy taxes based upon the fundamental items of people's property, then, after making a full investigation in detail of all the properties to make a revision of the taxes levied. But the most important question is how to check the prevailing "exchange money for goods" and money spending tendencies, during the period prior to the taxation, that is, the first period from now to the end of April, and the second period from May to March next year.

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ECONOMIC SERIES: 233 (Continued)

ITEM 2 (Continued)

The Government also made a statement that' for the sincere savings and deposits of the people some considerations will be made in respect of taxation', and is now making a study of a concrete plan. But hitherto it has not clarified any concrete project whatever. The only thing that has been published concerning the measures for taxation, is the deduction to be made from the standard amount of taxation for savings on long term, fixed bank deposits, trust deposits, domestic loan deposits and insurance moneys. The banking circles, in view of the recent increase in withdrawal of deposits, maintain that a deduction should be made for ordinary deposits just the same as for fixed deposits, but from the standpoint of technique of taxation, we think this results in complicating the process of taxation, and hence delays it. Therefore all the Government officials are of opinion that no deduction should be made for ordinary bank deposits.

Reviewing the Government measures for the imposition of the new taxes we think it is impossible for the Government to prevent the decrease in money deposits, and the tendency to exchange money for goods. The financial authorities concerned should take the necessary steps to promote savings and deposits as well as to facilitate taxation. In conclusion we expect the Government to take drastic financial measures to save the people from uneasiness, by stabilizing the financial, world in the next few months.

Summary:

According to the study of the Ministry of Agriculture and Forestry, as the result of the formal application of the new Farm Land Adjustment Act; out of 2,543,550 chobu of all tenant farms in JAPAN, 953,000 chobu or 38 per cent are destined to be compulsorily disposed of from the ownership of the landlords, The acreages to be disposed of range from the high figures of HOKKAIDO (150,000 chobu), AKITA (49,232 chobu), and YAMAGATA (47,076 chobu) to the low figures of KAGAWA (5,000 chobu) and TOKUSHIMA (4,873 chobu). A similar uneven distribution among prefectures is noticeable in the ratios of land thus disposed of against the total tenant acreage of each prefecture. Indeed, in some prefectures in TOHOKU, e.g., in AOMORI, IWATE, AKITA, and YAMAGATA the ratios are as high as 70-80 per cent, while in such prefectures as NAGANO and KAGAWA it is only 10 per cent. In such rice producing centers as NIGATA and IBARAKI where there is over one million several hundred thousand chobu belonging to tenant farms, the proportion of land to be disposed of compulsorily is relatively small. It is pointed out in many quarters that the forthcoming land reform is one of the historically important tasks in JAPAN and that therefore every section of the nation must be affected by the new law, no matter how small the actual figures involved may be.

Creation of nearly 1,000,000 chobu of owner-tilling farms at once is really a great job. Yet it is 500,000 chobu short of the goal of 1,500,000 chobu set by the government authorities themselves for ultimate achievement. In order to bridge this gap, the authorities are at present planning to apportion these 5,000,000 chobu for the remaining tenant farms of each prefecture at an equal rate. This will be done, however, not as a compulsory measure, for it is not included in the scheme of the present land adjustment act. Nevertheless, it is reported that this will be carried on through some means of effective persuasion any way. The time limit set by Allied Headquarters for the presentation of a complete plan for peasant reform is 15 March, with present progress in view, it seems that the government authorities will be able to make all necessary plans by that date.

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