Press translations [Japan]. Economic Series 0015, 1945-11-24.

Summary:

Thirty million kan (kan= 8.25 1bs.) of sweet potatoes were apportioned this year to CHIBA prefecture for the production of starch. Eastern CHIBA, which has annually used about 15,000,000 kan in the production of starch, reports a serious failure on the part of farmers to meet the production quota.

This failure to meet quotas has been caused by the heavy purchase of farm products by the urban population at the farms. The farmer prefers to sell direct to the town people who pay gladly and thereby save the cost of transportation, which is eight times as much as the fixed government price for potatoes. The starch factories can obtain the cooperation of both farmers and consumers. There is little likelihood of their operating at full capacity.

Full Translation:

(Asahi - A.P. Special Contract)

On 14 November, JAPAN made a proposal based on the barter system to the UNITED STATES and other countries with the objective of acquiring basic food speedily and bolstering its tottering economy. Commerce and Industry Minister OGASAWARA expressed his hopes that the UNITED STATES would become JAPAN'S best customer again and at the same time filed a formal application with the Supreme Commander of the Allied Powers for the importation of food, coal and heavy oil. He was hopeful of securing a means of payment for these imports through the exportation of goods. In this connection, the authorities of the Economic and Scientific Section of the Supreme Commander of the Allied Powers declared that the Allied Forces were not yet ready to express their policy toward the problem of JAPAN'S financial future, but that the Allied authorities consider this as JAPAN'S most vital question and are studying the proposal.

In his statement to the Associated Press correspondent, Commerce and Industry Minister OGASAWARA outlined the policy of the Japanese Government, saying, "JAPAN'S foreign trade is at a standstill now, but we would like to resume it as quickly as possible". He further stated, "I have asked, the Supreme Allied Headquarters for the permission to import 3,000,000 tons of coal, 850,000 tons of ferrous ore, and 128,000 tons of non-ferrous ore. As collateral for these imports, JAPAN has included gold, silver, platinum, raw silk,

ECONOMIC SERIES: 15 (Continued)

ITEM 2 (Continued)

silk cloth, cotton goods, chemicals, drugs, machines, celluloid articles earthenware, hardware, tin ore, antimony and art goods in a list of available exports."

The Ministry declared that JAPAN did not want financial credit to be established and that, in case permission was given for the proposed imports, this country would be able to pay one-fifth of the accounts by the end of December and the remaining four-fifths next year.

Observing that it would take five years before production in JAPAN is restored to normal, the minister made it clear that raw silk to be produced next year would be made collateral. He also declared that preparations would be made to make payment for cereals which were to be imported and delivered immediately. He said that goods now held in stock in JAPAN and those which could be used as exports were not enough to meet the payment for what the country needed as imports. Should the export plan fail to be realized, JAPAN would be placed in a position in which it can neither pay nor import. A great many people will starve and the industrial foundations will be destroyed, the Minister said.

It is highly desirable that American business experts investigate Japanese market conditions, find out what articles JAPAN is able to export and then have this country send trade representatives to AMERICA. Because Japanese industry is hard hit, JAPAN will highly appreciate AMEKICA'S spiritual and material support. He believes that AMERICA will become JAPAN'S best customer, as was the case before the war.

The fact that JAPAN has no financial credit is not the only impediment to reopening trade. JAPAN, which now has only two vessels available for the transportation of cereals from the UNITED STATES and CANADA, needs 330,000 shipping tons for the first three months of next year, and 670,000 tons for the second three months. The supply of this necessary shipping space can be accomplished only by the Allied Nations.

Commerce Minister OGASAWARA further made the following proposals on imports of materials: Cereals should be imported from KOREA, MANCHURI., FORMOSA, INDO-CIIINA, SIAM and a major portion from the UNITED STATES and CANADA; petroleum products from the UNITED STATES; fertilizers from NORTH CHINA, OKINAWA and KOREA; copra from the PHILIPPINES; coal from SAGHALIEN, KOREA and NORTA CHINA; iron and gold ore from KOREA and CEMTRAL CHINA; and non-ferrous metals from KOREA and MANCHURIA. So far, permission to import has been given for a small amount of salt and crushed corn from KOREA. JAPAN is now supplying only 70,000 tons of coal to railways in KOREA.

Authorities of the Commerce Ministry said that in return for the imports from AMERICA, JAPAN will be able to deliver raw silk, silk goods, porcelain, platinum, tin, antimony, art goods, tea, canned goods, toys, ornamental and decorative articles, and flax. They also stated that JAPAN would be able to export 10,000 bales of raw silk by the end of December of this year and 39,000 bales more later. In 1940 JAPAN out of the total raw silk exports of 289,382 bales sold 254,433 bales to the UNITED STATES. Minister OGAS [illegible]ARA reported that this year's cereals would be consumed by April of next year and that wheat and potatoes will be supplied for foodstuffs in August of the same year. He pointed out that a food crisis would overtake JAPAN during the intervening period between April and August and that, should the people ever come to know that they are unable to get enough food, this would result in uneasiness and disorder

- 2 -

ECONOMIC SERIES: 15 (Continued)

Summary:

At a round table meeting held in one of the villages ho had visited in his trip through rural areas to encourage the farmers, Agriculture and Forestry Minister, MATSUMURA, in an appeal to farmers asserted that people are facing starvation unless the farmers help by sparing no effort to ship their designated crop quotas.

The farmers were deeply impressed. They had set aside the day of the meeting as a holiday, and for the occasion served cakes made from rice which had been accumulated by foregoing several days' rations. This in itself indicates the farmers spirit is active. Authorities must not deceive the farmers as they did during the war.

At the meeting a member of the SAITAMA Prefectural Assembly proposed the establishment of a rice-monopoly in place of the current quota allotment system of delivery. Although heavy farm labor necessitates the consumption of 4 go of rice per person per day, farmers cannot store even half the amount required for this consumption under the current system. A rice monopoly system will, on the other hand, make available this supply.

Tea-seed Harvest in SEIZUOKA-KEN

In SHIZUOKA-KEN a tea-seed harvesting program is about to go into action. Oil extracted from tea seeds is useful in the home, and as a lubricant.

Tea seeds harvested last year totaled 13,587 bushels, but only 10,000 bushels are expected this year.

Unutilized Foodstuffs in KANAGAWA-KEN

The KANAGAWA Prefectural government has ordered its rural sections and towns to gather edible but heretofore not utilized greens such as, starch lees, vines and leaves of sweet potatoes, acorns, mulberry leaves and sea-weed.

Substitutes Staple in TOCHIGI-KEN

Staple substitutes in T0CHIGI-KEN such as acorns, sweet potato vines, and mulberry leaves will be shipped for distribution.

Since the rice crop was meagre, it is likely these substitutes may have been shipped at one time, thus causing confusion at distribution centers. In order to avoid this, the prefectural government has decided to limit shipment.

Summary:

It is reported that coal output has dropped severely since the end of the war, resulting in the presort critical shortage. Latest investigations show that coal output in KYUSHU is apt to Increase from October, except in the TSUKUHO, KASUYA, and. ASAKURA districts, which suffered severely from recent hurricanes and floods. However, output by the end of October in the MIIKE, SAGA and NISFISONOGI district is encouraging.

- 3 -

ECONOMIC SERIES: 15 (Continued)

ITEM 4 (Continued)

It is still, doubtful, however, whether the situation in the country, as a whole has improved. The increase in output in KYUSHU has been affected through the successful elimination of trouble with Chinese and Korean workers, recovery of public peace, and restoration of areas which had suffered from, hurricanes and floods.

Extract:

Under the auspices of the JAPAN Commercial and Industrial Economic Association, the TOKYO Commercial and Industrial Economic Association, and the Central Organization of the Commercial and Industrial Associations, a commercial and industrial rehabilitation meeting was held on 14 November, at the HIBIYA Public Hall. A number of men and industrialists representing many localities assembled.

Following the opening addresses of Messrs. FUMIYAMA and GODO, the Commerce Minister, OGASAWARA, addressed the Conference. The Commerce Minister told in part that the most pressing need of the nation at this moment is the solution of the food problem. But the task of economic rehabilitation of the ration largely depend upon the renewed activities of the medium or small-scale merchants and industrialists. The Commerce Minister concluded by saying that the Government, determined to do its best in facilitating the commercial and industrial activities of the people, is ready to abolish control laws in accordance with the demands of the people.

After the address of the Commerce Minister, representatives of local commercial and industrial organizations expressed their opinions. Among them, Mr. SATO of IWATE-KEN expressed the following opinion: "One of the chief factors which led the nation to defeat in war was the existence of the economic control laws. Because of these laws, which restricted merchants and industrialists in every phase of economic activity, they could not work actively. In my prefacture the merchants and industrialists are still caught in the maze of control regulations which still remain".

Throughout the Conference the desire for repeal of economic control laws was almost universally expressed among the business world. Finally the Conference passed resolutions which included, among others, the demand for the abolition of control laws and a three go per capita distribution of rice a day.

Summary:

Stimulated by an Allied Supreme Headquarter's directive to emancipate the small peasants from their slave-like conditions, the government is preparing a bill aimed at the basic reform of the land ownership system and the democratization of agricultural associations. The former will be acheived by the reform of the present Agricultural Land Ownership Law. The reform bill will authorize associations to buy land at a fixed price. The associations, in turn, will allot land to those who are willing to be independent farmers.

At the same time, the agricultural Association Law will be revised so that the associations which have been so timid in assuming their duties under bureaucratic control, will be giver a freer hand.

- 4 -

ECONOMIC SERIES: 15 (Continued)

ITEM 6 (Continued)

The main elements in the revision of the Agricultural Land Ownership Law Pre as follows: Out of 6,000,000 chobu of cultivated land in the country, 46 per cent or 2,700,000 chobu of tenanted land will come under the agricultural association's control by compulsory purchase, with the exception of farms which their owners prefer to keep for their own production. Two billion yen will he appropriated for this purpose. The purchasing price of land will be fixed to correspond with that prescribed by tentative farmland price control laws, plus 150 yen per tan.

Committees of the association will be elected by members and will not be appointed, by prefectural authorities as has been the case before. Those who are not willing to be independent farmers will pay their farm rent in money, not in food products. The gist of the Farm Association Law is that the leaders of National and Prefectural farm associations, who have been appointed by the Agricultural and Forestry Ministry, will be elected by a vote of the members.

DISTRIBUTION "X"

- 5 -