Press translations [Japan]. Editorial Series 0125, 1945-12-20.

Full Translation:

The statement recently made by Mr. PAULEY on repatriations is rather encouraging for us because it gives us the clear prospects of future industry in this country. It is said that his plan is concerned with economic stabilization, and the realization of democracy in JAPAN. Therefore, we must faithfully observe it. Nevertheless, we must venture to say that even if the vanquished has been thoroughly relieved of militarism and is democratized, the peace of the world will not come from that alone. The peace of the world rests upon the attitude of the victors.

At the Versailles Conference, CLEMENCEAU said to WILSON and LLOYD GEORGE, "Do you really desire the permanent peace of the world? If so, the prerequisite must be to abandon all our colonies, that is, INDIA, the PHILIPPINES, and colonies in AFRICA."

To question the reality of this episode is out of place here. Suffice it to say that the Versailles Conference, which tried to bring peace at the sacrifice of the vanquished, invited after 20 years World War II which exceeded the preceding one in magnitude of scope.

President TRUMAN's 12 principles for foreign policy clarified the lack of territorial ambitions. Nevertheless, it is questionable whether the Allied Powers can be impartial to each other in treating on armament and other problems. For example, a wide difference of opinion among them is reported as to the management of the atomic bomb. However, suspicion is common among both victors and vanquished. This is now the most powerful factor that could spur the Allied Powers in the enlargement of armaments.

We should consider the problem from the side of the masses. There is no doubt that the directive for the emancipation of farmers recently issued by General MacARTHUR will bring beneficial results. However, if we extend our outlook to foreign farmers, we find that Japanese farmers are put under very infavorable conditions by comparison. According to the statement of the Public Relations Office the farmer's average share of agrarian land in JAPAN is less than three acres, while in the UNITED STATES the average share amounts to 47 acres, in ENGLAND, 10 acres, in CANADA, 80 acres, and in KOREA, 3.6 acres. It is needless to say that the difficulties caused by such inequality, in a country, can not be settled by the mere improvement of internal conditions.

EDITORIAL SERIES: 125 (Continued)

ITEM 1 (Continued)

Here is another dangerous factor. "So far as there exists a hell on earth in some corner of the world, we can never expect permanent peace," said Mr. BEVIN, Foriegn Minister of the Labor Cabinet in England. Mr. Hector MANIIRU, who occupies the position of Vice-Minister under BEVIN, also declared in Parliament, "The fundamental policy of British diplomacy is to elevate the living condition of the general masses in the countries with whom the BRITISH EMPIRE has friendly relation. "It will pay to watch the future development of British diplomacy carefully.

Full Translation:

It is reported that the new yen notes will be issued next spring to be exchanged for the banknotes now in circulation. KANNON and NIO, goddess and king in BUDDHISM are to be represented on the new yen notes.

It is only natural that martial gods and warriors have already disappeared from view now that militarism has been eradicated from our country. However, is it proper that idols of BUDDHISM should be printed on the new notes in place of them? Because of freedom of religion in JAPAN, some people believe in CHRISTIANITY, others in SHINTOISM, and still others are Mohammedans. Currency is issued for the use of all these people. It is also provided for foreign people in JAPAN, who will also be impressed with a feeling of being closer to JAPAN. In view of such facts it may be downright disagreeable to those other than BUDDHISTS to handle banknotes on which idols of BUDDHISM are printed.

"Bad currency drives off good currency" is generally known as GRESHAM's law. This is also applicable to the circulation of paper currency including non-convertible currency, and in the case of only convertible paper currency being in circulation it is likewise applied. Moreover, it is natural that this law might be applicable to an instance in which no difference in quality or premium exists between the old and new currency. For the worshippers of BUDDHA, the above mentioned designs will be good currency while to ether believers, it will be bad currency. When there [illegible]s apprehension that the inferior quality and indistinct printing of the new paper currency, alone, will reduce the trustworthiness of the currency and may affect the feelings of the public in a most delicate way thus helping to accelerate inflation, what is the need of issuing banknotes with Buddhist idols on them? It only serves to reduce a trust in currency. This is much more so in the case of 100 yen and ten yen notes which are popular notes.

Paper currency should, first of all, carry the symbol of that country as is seen in the case of AMERICA where the first president, WASHINGTON, is represented on the notes. Second, it is suitable for the new JAPAN to represent peace and production on paper currency. In this connection, a design for representing peaceful JAPAN is preferable. With regard to production, the designs on agriculture or industry might easily be obtained. In 1879 when productive industry was being heralded, a new five yen note was issued on which a factory and a blacksmith's workshop were represented. This might furnish a good

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EDITORIAL SERIES: 125 (Continued)

ITEM 2 (Continued)

example for the new design on the future paper currency.

Full Translation:

Of late what particularly attracts our attention is a boom in black market transactions. When we see black markets flourishing in railway stations or on busy roads, we can not but feel sad somehow. Although it is undeniable that a large number of people may share in their benefits, on the other hand all sorts of illegal dealings are carried on with the co-operation of the authorities. This indicates nothing but a lack of policy on the part of the government. It testifies to the fact that the Government has not yet fulfilled its duty in stabilizing the people's livelihood. With little production going on the present situation results in the food of black marketing and only spurs on inflation. As it is, this unsound state is evidently due to underproduction of which fact the Government must be fully aware. We wonder Why the Government does not take more resolute steps in this respect.

Needless to say, there are many bottlenecks, in the future outlook of our economic world in securing raw materials and in raising funds. However, when we take into due consideration the terms of the POTSDAM Declaration, the reparations' policy program outlined by Ambassador PAULEY and the directives of the Allied Headquarters regarding our economic reconstruction, we come to realize that JAPAN can maintain and develop agriculture, commerce and industry on a small scale, leaving foreign trade aside for a while.

Permanent plans are undoubtedly necessary, but at this time when the people's livelihood has reached a crisis, we must start with the solution of urgent but familiar questions, such as the revival of wholesale dealers and brokers and the reorganization of the existing guild system. Originally wholesale dealers and brokers were peculiar to this country's economy and acted as intermediaries through retailers between producers and consumers. However, they ceased to exist during the war due to the drastic reorganization of our trades. If they are revived they will not fail to stimulate producers by systematic orders resulting in the smooth circulation of goods and still leaving a little room for the existence of black market dealers. As for the existing guild system, only two guilds will be permitted to exist, namely, a trade and a co-operative guild. The two guilds will help each other and vivify the economic morale of the country. With a small area of land, poor natural resources and many economic restrictions imposed by the allies, JAPAN will have no choice other than a planned economy to push ahead.

The writer has dared to express above some remarks regarding immediate measures against the current economic situation which threatens a complete collapse.

Summary:

I think the Japanese have many defects but what tops the list of these defects is that their life is replete with falsehoods. This means

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EDITORIAL SERIES: 125 (Continued)

ITEM 4 (Continued)

that they are not faithful to the truth and inclined to make light of reality. However misguided they were by their leaders, they would never have been subject to the exorbitant ambitions of these leaders if they had been able to grasp the reality of the circumstances before World War II. We must find out where in lies the root of our defect and stop such a rule of life which causes us to indulge in false-hoods. Thus we can bring about the completion of what we call the reconstruction of a new JAPAN.

This is really a hard task now that almost everything has been destroyed by the war. However, their must be accomplished at any cost. We must remember that the materials we lack may be covered by imports from abroad, but this mental shortage can be covered only by our own efforts and not by any foreign impart.

(Letter sent by ISOBE, Shin MD., an adviser to the Central Liaison Office)

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