Press translations [Japan]. Political Series 0292, 1946-02-07.

Full Translation:

For the democratization of the social order, the 89th Diet passed the Labor Union Law which will be enforced shortly, thereby formally granting labor the right to form unions, strike and negotiate. Considerable attention by labor should be given to the Labor Committee which is to play the principal role in the operation of this law after its promulgation and will have an important bearing upon future labor movements in JAPAN.

SCAP is also particularly concerned about this committee. At the press conference on 2 February Captain CONSTANTINO of the Labor Section of the Economic and Scientific Section stated: "The nomination of members to compose the Labor Committee has an important bearing upon both laborers and capitalists, as it may decide the direction of the labor movement in JAPAN. Therefore, the people should closely watch the nominations to see what sort of men are going to be elected." It seems that he has roused the people's attention to the nomination of committee members. If the people should remain unconcerned and leave it to the discretion of the Government, there would be a danger of the law's complete mutilation.

Article 26 of the Labor union Law stipulates that the Labor Committee shall consist of the employers' delegates recommended by employers, the laborers' delegates recommended by the labor union and third party persons approved by the delegates of employers and laborers. The number of delegates shall be the same for each group and they will all be appointed by the government of the locality concerned. The total number of delegates far each committee shall be 15 for the Central Labor Union, six to nine for a local committee. The Labor Committee is empowered:

• 1.To recognize formation of labor unions (Art. 6);
• 2.To revise regulations of labor unions (Art. 8);
• 3.To make amendments on corporative contracts (Art. 24);
• 4.To appeal for on order to dissolve labor unions (Art, 15);
• 5.To supervise and investigate labor unions (Art, 29);
• 6.To appeal for application of punishment of employers who dismissed or unfavorably treated laborers by reason of their being members of a labor union, or who have employed laborers subject to their not joining, or their secession from labor unions (Art. 33);

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• 7.To prevent labor disputes to mediate, and to make arbitrations (Art. 27).

Thus the Committee is empowered with principal rights for the operation of the Labor Union Law.

Among the members of the Labor Committee, the delegates of capitalists and laborers will speak for the benefit of the classes which they represent, both at the central and local committees. Their numbers being equal, it follows that the casting of votes is controlled by delegates of the third party, but these third party delegates, in view of the recommendations made in the past, are usually close to capitalists because of their social rank etc. As for the labor delegates who are of the utmost importance to the laborers, they are recommended by the labor union, but not by the general will of all labor unions. The recommendation is directed by the Government to some of the bodies which it has recognized. Consequently it does not follow that the recommendations are limited to these who would fight for the laborers' benefit. This is already evident in the Maritime Labor Committee, the forerunner of labor unions in which the delegates of the third party are regarded as siding with the capitalists, and even among the labor delegates there ere some persons who, in co-operation with capitalists and the Government broke strikes in the past.

Nor the Central Labor Union the Ministry of welfare has already informally decided on MATSUOKA, Komakichi, NISHIO, Suehiro, KUMAMOTO, Torazo, AKAMATSU, Tsuneko and MATSUDA, Chozaemon. Except for Mr. MATSUDA of the General League of Transit Unions, all of them belonged to the farmer General Labor League and are the leading members of the Social Democratic Party. Their suitability causes considerable doubt.

If a recommendation lacks suitability as in the case of the YOMIURI dispute in which the arbitration committees nominated by the TOKYO-To had to be replaced by a newly formed special committee as the result of the disputers' objection it will only aggravate the situation. Besides, as observed in the recent four Ministers' Statement for clamping down on labor disputes, the Government is rapidly turning reactionary. It is possible that they may urge the Labor Committee to prevent provision of unfavorable union regulations, or interfere or hinder unions' activities under pretext of supervision, or trespass upon the laborers' interests under the guise of arbitration or amendment of contracts.

Especially in the unilateral decision on those who have disturbed the public peace' as set forth in Article 15 of the law, there is the probability of suppressing the activities of the unions. At this time all labor unions should concentrate their interest upon the Government's nominations, and strive to make the law conducive to the true development of labor unions.

ITEM 2 Liberal. Party Decided its Economic Policy - Free Economy Through Strong Control. - Asahi Shimbun - 6 Feb 46. Translator: P. Ochiai.

Full Translation:

Addressing an urgent plenary meeting on Tuesday, the Liberal party discussed its program concerning an economic policy, which has been obscurely explained only as "a return to laissez-faire." The problems of inflation and of industual reconstruction were the points to be especially discussed, and since they ought not to be solved by simple liberalism, the party admitted the necessity of a powerful, government control at the beginning, and expressed the party's standpoint that its final object is to revive free economy after financial conditions return to normal and after production increases.

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POLITICAL SERIES: 292 (Continued)

ITEM 2 (Continued)

Concerning the inflation problem:

• 1.In order to prevent inflation, the measures are not adequate if taken only to alter and set right the currency. We must endeavour to produce mony of the necessities of life, especially food, as well making attempts to import them. The settlement of the food problem is most urgent.
• 2.(a) Immediate revival of a currency limit system, (b) Deferring payment interest public debts. (c) Floating a new public debt. (d) Freezing the Government compensation on munitions factories and on property abroad. (e) Special taxation on war profits. (f) Establishing national joint taxation on those who have more than 100,000 Yen, however, consideration of non-taxable items and the rate of taxation of war sufferers and of the families of the deceased soldiers is necessary. (g) Drastic reduction of administrative expenditures.
• 3.Income from special taxation on war profits and from "national joint taxation" ought to be earmarked for easing the nation's life, for reconstructing industry and war damages, and for solving the unemployment problem.

Concerning industrial reconstruction: In order to show the capitalists the way that enterprises should be run, the Government must immediately decide upon its measures for reconstructing industry. This will help to solve the problem of unemployment at the same time, and by producing the necessities of life, the people's life will be improved and inflation will be prevented. The followings are the concrete measures:

• 1.The Government must immediately decide what factories are necessary for the people's necessities of life and what basic industries and on what scale measures are to be taken. Make clear the plans for reconstructing industry!
• 2.Funds, property, labor, and transportation should be applied according to priority equipping newly-opened workshops with machinery.
• 3.The fixtures of a factory, its machinery, and labor, which have been used in ready-made munitions factories and in those that were necessary during war, ought to be diverted to industries based on this new plan.
• 4.When a ready-made industry is diverted to other purposes its debt should be liquidated and the fixtures should to be used as soon as possible for reconstructing new industry.
• 5.As for new enterprises the Government must force financial institutions to accomodate it, no matter how it managed its credit and obligations during the war.
• 6.Prices of goods made in a reconstructed enterprise are decided upon in proportion to the present price level based on rice; and if it does not pay, the Government will indemnify the producers.
• 7.The industry reconstruction committee ought to be immediately established in order to decide upon the classification of urgent enterprises.

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