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Press translations [Japan]. Economic Series 0040, 1945-12-03.
Supreme Commander for The Allied Powers. Allied Translator and Interpreter Section.

translation-number: economic-0198

call-number: DS801 .S81



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GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS
ALLIED TRANSLATOR AND INTERPRETER SECTION
PRESS TRANSLATIONS
No. 198 Date: 3 Dec 45

ECONOMIC SERIES: 40

ITEM 1 1,000 Cho Mountain Forest Burnt and 150,000 labor wasted in mining Aluminum Ore - Nagasaki Shimbun - 19 Nov 45. Translator: S. Kinoshita.
Summary:
It has been generally believed that aluminum ore is not produced in JAPAN. To our amazement, it was revealed that an excellent ore containing 80 per cent aluminum is located in NAGASAKI Prefecture in such huge quantities as 20,000 tons at least. Its mining was carried out under the strict supervision of military authorities. Despite exceedingly painful labor by both officials and civilians devoted to the undertaking, not a grain of aluminum was gained. The story was kept strictly secret before the end of the war.
The ore was found underground in FUKUEJIMA in NAGASAKI Prefecture, the western tip of JAPAN in the summer of 1942 when the Great EAST ASIA War was painted as a brilliant military achievement.
It was found accidentaly by Dr. TAKANE of the TOHOKU Imperial University, when he visited Mount OTO on his inspection tour. The OTO mountain is located in the center of FUKUEJIMA and small scale mining of alabaster was then being undertaken by a private company. To his great delight, analytical research testified that the ore contained 80 per cent aluminum he named the ore DAISU[illegible]OA*. Ascertaining by repeated chemical investigations of the excellence of the ore, he formally proposed to the naval authorities that they utilize these resources. However, the naval authorities gave no heed to his important proposal. It was not until February, 1945, that the naval authorities, having been reminded of Dr. TAKANE's proposal, finally dispatched mining troops to FUKUEJIMA.
In order to make a prompt survey of the total quantity of this underground treasure, the authorities decided to burn the whole forest covering OTOZAN. At the beginning of March 1945 they set fire to several points of the mountain. The fire, which burned several days, ended in entire destruction of the mountain forest extending over 1,000 chobu.
Actual mining activity began in the middle of March. All inhabitants of the island, men and women, young and old, school boys and girls, even primary school children, were called upon to co-operate with mining troops of the Navy. Even cattle for cultivation were mobilized. It is matter of curce that tremendous resource and labor was spent unsparingly by the naval authorities themselves.
The mining work continued until the war ended. For about five months, all people engaged worked day and night without any complaint. Nevertheless, they were not told clearly what they were mining. The splended words, "CTO ZAN produces splended things which makes JAPAN victorious" were all they heard from the authorities. Despite

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ECONOMIC SERIES: 40 (Continued)
ITEM 1 (Continued)
tremendous resources and labor, all that is revealed by the present investigation is that only about 150 tons of this aluminum ore were shipped from FUKUE port. Some one says that 2,000 tons were dug out. But nobody knows the truth. If the original prospect had been realized, the output of the ore should have been for more than ten thousand tons during these five months. Regarding the cause of t[illegible]failure, some say it was due to conflict among high officials. Others suggest sabotage by the officials concerned. At any rate, it is certain that the undertaking was far more difficult than anticipated.
It is very much to be regretted that the historical events, undertaken at such expence and with the labor of more than 150,000 people, ended without any fruitful result. Anyhow, it may be a freak of destiny that Dr. TAKANE, the finder of DAISUROA* was killed in a [illegible]-29 air raid on 26 June at the NAGASAKI Station en route to TOKYO.
ITEM 2 The Courses of Chemical Industry Control Organizations Still Uncertain - Nippon Sangyo Keizai - 25 Nov 45. Translator: S. Zwata.
Extract:
Control Companies and Control Associations under THE CHEMICAL INDUSTRY CONTROL ASSOCIATION (KAGAKU KOGYO TOSEI KAI), with public attention focussed upon them, are in a state of uncertainty as to what changes in organization should be made. The following control associations of the Chemical Industry Association, consisting of fifteen control agencies have started reorganization, but the others are still uncertain:
The JAPAN Brine Goods Control Association (NIPPON KUJU SEIHIN TOSEI KUMIAI).
The JAPAN Carbon Bisulphide Control Association (NIPPON [illegible]IRYUKA TANSO TOSEI KUMIAI).
The JAPAN Carbon Black Control Company (NIPPON CARBON BLACK TOSEI KAISHA).
The JAPAN Gunpowder Control Company (NIPPON KAYAKU TOSEI KAISHA).
The JAPAN Chemical Industrial Chemicals Control Company (NIPPON KAGAKU KOGYO KAGAKUHIN TOSEI KAISHA).
The Metal Soda Industry Association (KINZOKU SODA KOGYO KAI).
Reasons given by the others for not yet making changes are:
The Foundation Law of Industry Party (SANGYO DANTAI KIHON HO) is not plain though they intend to reorganize to associations.
Opinions have not been formulated as to the future demand and supply. It is impossible to ascertain when they will be reformed to Independent Distribution Organizations (JISHUTEKI HAIDYU KINAN).
The control organizations (TO SEIKIKAN), which borrow their working fund from The National Welfare Bank (KOKUMIN KOSEI KINKO), will not be reformed of the employees, whom The control organization subsidizes, is forced to change their jobs or to be out of employment.

The causes of all control organs are as follows:
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ECONOMIC SERIES: 40 (Continued)
ITEM 2 (Continued)
The JAPAN Brine Goods Control Association will for the time being be a voluntary association as an Independent distribution organization and will be reformed when The Foundation Law of Industry Party is formed.
The JAPAN Carbon Bisulphide Control Association will be similar to The JAPAN Brine Goods Control Association.
The reorganization of the JAPAN Glauber's Salt Sulphuretted Soda Control Association (NIPPON BOSHO RYUKASODA TOSEI KUNIAI) is not certain.
The JAPAN Chemical Industry Chemicals Control Company will be a commercial company.
The JAPAN Sulphuric and Nitric Acid Company (NIPPON SHO RYU CAN KAISHA) will be a company under the Commercial Law, which deals in ammoniac and sulphuric acid goods.
The organization of the Soda Industry Chemicals Company (SODA KOGYO YAKUHIN KAISHA) is still uncertain and will be a metal industry association which will consist of metal soda makers.
The organization of the Carbide Control Company (CARBIDE TISEI KAISHA) is uncertain.
(ORGANIC)
The Metamorphusis Goods Company (KASEI-HIN-KAISHA) will be changed to a company.
The Oil Goods Company (YUSHI-SEIHIN-KAISHA) will be changed to a company under The Commercial Law as an organization for the distribution of oil goods
The Paints Control Company will probably be changed to a company under the Commercial Law as an organization for the distribution of paints.
The Synthetic Resin Control Company (GCSEI-JUSHI-TOSEI-KAISHA) is uncertain.
The Carbon Black Company (CARBON BLACK KAISHA) will remain as it is.
The JAPAN Gunpowder Control Company will be a company organized for the distribution of industrial powder under The Commercial Law.
The Coal Oil Control Company (TANYU TOSEI KAISHA) will be an independent manufactures distribution control company under The Commercial Law.
The Organic Compound Company (YUKI TOSEI HIN KAISHA), now composed of various companies, will be devided into independent units.
ITEM 3 Analyzing the Nakajima Aircraft Company - Nippon Langyo Keizai - 26 Nov 45. Translator: M. Maruyama.
Summary:
The NAKAJIMA Aircraft Company and the MITSUBISHI Heavy Industry Company were the largest aircraft manufacturing plants in JAPAN.
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ECONOMIC SERIES: 40 (Continued)
ITEM 3 (Continued)
Conjectures are hazarded in some quarters as to the questionable status of that company (NAKAJIMA), because an enormous sum of money was dispensed by the military to the company during the confusion immediately following the termination of the war. The fact that the company also had failed to make public its balance sheet during the war has increased public suspicion. This article deals mainly with the company's past status and partly with the present condition.
The company was established by Mr. NAKAJIMA, Chikuhei on the basis of his technical knowledge of aviation which he acquired in the UNITED STATES after World War I. Taking advantage of the universal tendency of armament expansion, the company was enlarged. The MANCHURI incident, CHINA affair and War of Greater EAST ASIA had caused it to expand its equipment on a large scale. While many other companies usually enlarge their scales of business through invitation to the public to share subscriptions, this company has been operated under monopolistic control of men closely related in blood to NAKAJIMA. The monopolization of the company is the largest cause of its present growth to greatness.
It also has aroused public suspicion. When the company increased its subscribed capitalization from 20,000,000 yen to 50,000,000 yen 1933, it borrowed 30,000,000 yen from the Industrial Bank of JAPAN without offering any shares to the public for subscription. This is the NAKAJIMA way of management. Someone pointed out that this policy came from the fact that aircraft shares were not popular on the stock market, but others said that the important nature of aircraft industry had caused the company authorities to take this conservative policy.
The number of shares held by members of the NAKAJIMA family on the increase of capitalization to 50,000,000 yen consisted of 515,320 shares by NAKAJIMA, Chikuhei; 178,072 shares by NAKAJIMA, Kiyoichi; 137,600 shares by NAKAJIMA, Momkichi; 135,600 shares by NAKAJIMA, Kimihei; 32,404 shares by NAKAJIMA, Chiihei. All these shares combined make 99.9 per cent of the total. The remaining shares of less than 1,000 shares were held by SAKUMA, Iehiro; KURIHARA, Jingo; and KIMURA, Gonshiro.
The company is a joint stock company in name, but the same family is the company in reality. Especially, CHIKUHEI is the absolute master of all the shareholders. His predominating position combined with his political influence in the Diet has given rise to the public suspicion on the composition and character of the company.
The NAKAJIMA interests have enlarged their business scale by means of frequent issues of debentures and loans. The balance sheet as of 31 December 1944. reveals that the company's debentures floated through the Industrial Bank of JAPAN totalled 1,200,000,000 yen and that as of 30 June 1945, shows that they increased to 2,500,000,000 yen. Recognizing the necessity of large-scale equipment for aircraft industry, the Government attached great importance to the expansion of the company's plants with the result that the NAKAJIMA Aircraft Company formed the mainstay of the eastern aircraft manufacturing group against the western aircraft manufacturing group with the MITSUBISHI Heavy Industry Company as the central figure.
While the MITSUBISHI interests had invested much of their own capital in the expansion, the NAKAJIMA interests borrowed it from banks for the same purpose. The company's business scale had reached its height when it placed under its control the OTA, KOIZUMI, UTSUNCMIYA and HANDA factories, all manufacturing the fuselage; the MUSASHI, OMIYA, HAMAMATSU, and DAIYA factories, all manufacturing motors; the OGIKUBO factory for parts; the MISHIMA factory for munitions; the MITAKA Laboratory; and more than 2,500 affiliated factories.
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ECONOMIC SERIES: 40 (Continued)
ITEM 3 (Continued)
There was a movement afoot among young technicians of the NAKAJIMA Aircraft Company to induce the management to contribute the whole equipment to the Government. The objective was their earnest desire to improve their technical status and to realize the sound development of mechanical industry by placing the equipment under direct State control. Before their movement matured, orders were issued by the military to designate the NAKAJIMA plants as the First Munitions Arsenal. On 1 April 1945, the movable property fixtures and implements were bought by the Government in accordance with the Ordinance for the Use of Factories based on the General Mobilization Law, while its real estate, buildings and other immovable property were borrowed by the Government. Rumors say, in connection with circumstances leading up to the designation of the NAKAJIMA Aircraft Company as a munitions arsenal, that a monstrous ambition of Lieutenant, General ENDO, Saburo, and his followers to realize an aircraft industry monopolization policy, led these schemers to grasp the operating power of the company, by taking advantage of its weaknesses.
Why the NAKAJIMA Aircraft Company has not made public its statement of accounts is due to the fact that, if it is announced, this will make known an estimated number of aircraft manufactured. The step, therefore, was taken out of the necessity to keep this information a military secret. Moreover, there is no need for the company to make it public, because of the very small number of its shareholders. There was much talk among the public that the company must have earned huge profits during the war. What is the real situation then? The balance sheet as of 31 December 1944, indicates that the net profit for the term under review totaled 3,105,000 yen, for which the company paid a semi-annual dividend of 1,750,000 yen at the annual rate of seven per cent. As a matter of fact, however, the company paid an interest on the 30,000,000 yen loan to the Industrial Bank of JAPAN at the annual rate of five per cent. The amount paid was 750,000 yen for the half year. The net earnings of the shareholders totaled 1,000,000 yen.
The semi-annual bonus for the company's president was 73,000 yen, that for the vice-president 52,000 yen, that for the managing-directors ranged from 21,000 yen to 15,000 yen. By the way, the semi-annual bonus for the chairman of the MITSUBISHI Heavy Industry Company is 65,500 yen; that for the president 35,500 yen (he gets bonus also from his concurrent positions); and that for the managing-directors ranges from 45,000 yen to 25,000 yen. Rumors that the NAKAJIMA officials get unusually large bonuses are not correct.
An investigation made by THE NIPPON SANGYO KEIZAI reveals that an average rate of the retirement allowances for the workmen of munitions companies in connection with their business dissolution following the termination of the war was four and a half months of their salaries and that for other employees was six months. Rumors that the NAKAJIMA Aircraft Company had paid the retirement allowances corresponding to several years' salaries are unfounded, although it is true that the company paid a little higher rate of such allowances.
The NAKAJIMA Aircraft Company was designated as First Munitions Arsenal in April this year, when the special commemorative allowances were announced to be paid, but the actual payment was not made then. The two kinds of allowances were paid at one time on the termination of the war. This has given rise to the rumors about the payment of a huge amount of allowances. Actually, the allowances ranging from six months to one year were given.
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ECONOMIC SERIES: 40 (Continued)
ITEM 3 (Continued)
The amount of indemnity necessary for the company's reconversion into a peacetime industrial concern is estimated to total about 1,000,000,000 yen. The company will reduce its capitalization to 20,000,000 yen and will engage in the production of civilian goods with its title changed to the FUJI Industry Company.
The number of aircraft fuselage manufactured by the NAKAJIMA Aircraft Company during the last six years follows:
For the Army For the Navy
1941 733 409
1942 l,404 1,266
1943 2,760 2,881
1944 3,594 4,335
1945 744 1,428

The number of motors manufactured for both the Army and Navy combined fallows:
1941 3,993
1942 5,660
1943 12,198
1944 11,650
1945 2,173

The production during April and May dropped heavily, due to air raids, but it began to gain gradually during June, July and August, as its underground factories in FUKUSHIMA-Ken were nearing a full operation stage.
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HomePress translations [Japan]. Economic Series 0040, 1945-12-03.
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