Press translations [Japan]. Economic Series 0041, 1945-12-03.

Full Translation:

Now, because of the abolishment of price limitations for fresh provisions and the tacit permission for black market prices on commodities, nearly all articles except the staple food can be obtained by money.

If we depend only on the normal distribution, we are short of bean-paste (MISO), soya beans and the like, but we not only can get them but also (ajinomoto) a sort of seasoning substance at the black markets which are now being opened in the daytime. Shoes, shoe polish, silk cloth (meisen) and underwear are beyond the reach of the mere poor. "Sake" (or rice wine) and to accoes, which many people find difficult to serve, are easily obtained by some people.

Even staple food is within easy reach of the rich. Those who have much money have also much time and influence. They can, therefore, secure railway tickets without standing in the long queue of buyers and can go out to distant places. On the part of the farmers, some boldly sell the rice, which they have harvested lately, to purchasers who solicit them, taking advantage of the delay in the allotment of rice which is to be offered for sale to the Government. Some town and village officials and members of the farmers! associations are now deeply concerned with this state of affairs, because there will remain but a small amount of rice in the farmers! hands when the allotment is decided.

However, the rich, for the most part, look unworried as they are well provided with staple food for all next year. It is needless to repeat the great danger which lies in the present situation, in which the rich not only have more than enough to eat but also can live surrounded by luxury. If the means to remove the causes for this situation is not put into effect soon, it will be too late to do any good.

The conversion of the notes of The Bank of Japan and the enforcement of the property tax will be put into effect some day, but before then some other means must be used.

Summary:

On the morning of the epoch-making directive of Supreme Headquarters' on the war profits tax and property tax, Finance Minister SHIBUSAWA

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in answer to newspaper reporters, clarified several points concerning that directive.

In order to levy new taxes successfully, a reorganization of the entire tax system is necessary. Therefore the Finance Minister is considering a revision of the present tax laws along the line that excise taxes chiefly will be increased. For the appraisal and levying of the war profit and property taxes a special committee composed of civilians will be formed. In the case of corporations it is easier to trace back the record than in that of private persons. Consequently two different sets of regulations for corporations and individuals shall be set.

Concerning exemption from the war profit wax, the Finance Minister thought that it would involve the question of changing price levels and demarcation of profits and salaries. These problems are not easily solved. The taxes shall be levied during next fiscal year (TN April 1946 to March 1947). For tax-payers who fall into a certain category such as the war victims, installment payments shall be allowed.

The preparation of the new yen note is under way. It will be issued when the time for the levy of the property tax has been designated. The financial authorities are studying methods to detect the total amount of bank deposits of one tax payer. A deposit without a responsible owner shall be confiscated or, if it was made willfully for the purpose of evading the property tax, the owner when found shall be punished.

The Finance Minister stated that at first the war profit tax will be levied and the property tax will be imposed on what remains of the property. The frozen accounts which arose out of the government compensation to munition industries or for wartimes insurances benefits shall be treated just as present frozen accounts. However, together with the present frozen accounts which were deposited at commercial banks, from now on all frozen accounts shall be concentrated at the Bank of JAPAN.

As to the relationship between the government compensation and profit dividents to the shareholders of munition companies, the Finance Minister thought that since the war profits are levied to the fullest extent and since the compensation allowed is only to companies for which such compensation is necessary, there will be no profit left for the stockholders. The amount of the government compensation to munition industries is estimated at 30,200,000,000 yen. While the loan of the Bank of JAPAN to city banks is reported at 25,000,000,000 yen. Concerning the balance of 5,200,000,000 yen, the Finance Minister said that the of by banks shall be ordered to buy the government bonds held by the Bank of JAPAN. He further added that, the war insurance compensation included in the [illegible]al amount of government compensation will be reduced considerably, he said.

In reply to the question of whether compensation to munition industries may be considered justified when pensions to war veterans are canceled, the Finance inister said that the question is justified but that compensation may facilitate recovery of manufacturing industries, and without immediate increase of production the nation will collapse undo inflation, The Government is considering a system of social security to replace present discriminatory pension systems. Concerning this social insurance, Mr. SHIBUSAWA asserted it would be executed

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within the limit of present annual expenditures for pensions, that is, 600,000,000 yen.

Finally, the Finance Minister praised the epoch-making directive since it was based upon a grand, kindhearted spirit to reconstruct the crambling national finance of JAPAN.

Full Translation:

The MAIZURU city authorities contemplete the establishment of the Japan Sea-Aquatic Products Company, taking advantage of the Naval port of MAIZURU. It's standing up to date is as follows:

Capital; - 10,000,000 yen.

Projectors: - presidents and vice-presidents of municipal assembly and chambers of commerce and industry in MAIZURU, KYOTO, OSAKA, KOBE. The price of a share: - 50 yen (not exceeding 200 shares for a man.) The shares will be offered for sale in KYOTO, OSAKA, KOBE, and MAIZURU.

Extracts:

The Supreme Headquarters, permitting import of staple foods on 24 November, has thrown a hopeful light on our forthcoming food crisis. The Minister of Agriculture and Forestry, MATSUMURA spoke on 26 November and was questioned by the reporter in an interview. The keynote of whet he said were:

"We are deeply grateful that staple foods have been permitted to be imported, and this gives us hope in dealing with the food problem. But, if producers and consumers spare their efforts and take advantage of the charitably Allied support, we shall not overcome the food crisis. You know, our import plan is based on the idea of 2 go 3 seki (330 gr.) per person a day because we estimated a harvest of 48,000,000 koku of rice this year. But harvest may be unavoidably reduced by 200,000,000 metric tons awing to occasional storms. More effort for getting the food to the consumer and additional regulations for production are needed for a solution to the food problem.

The question and answer discussion fallows:

Question, "Is there any certainty that we can pay for foods we import?"

Answer, "A plan is being rushed to completion."

Question, "Have you made a survey of food conditions the world over?"

Answer, "KOREA excepted no study has yet been made."

Question, "Do you intend to increase the scurrent fixed quantity of food for ration?"

Answer, "Depending on the quantity to be imported, I am willing to change the amount to 2 go 3 seki (330 gr.)."

Question, "Are any preparations for glutinous rice being made for the coming new year?"

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Answer, "I hope to ration it for established civilian customs (new year, glutinous rice cakes will he eater)"

Extracts:

The Imperial Government Railway has decided recently to take over the direct management of the SHIMEN Coal Mine, located at SHIMAN Mura KASUGA-Gun, FUKUOKA Prefecture, formerly belonging to THE Fourth Naval Fuel Depot, permission to do this had been requested MacARTHUR's Headquarters through the Central Liaison Office, with a view to securing a superior quality of coal for railway purposes. The actual work will be started shortly under the name of SHINMEN Mine of The MOJI Railway Bureau.

The mine is situated 60 kilometers southeast of HAKATA-Shi. The annual production is 500,000 metric tons and, its quality being 6,600 calories, which is best fitted for railway purposes, will be used in some part of the SANYO and TOKAIDO Lines. The work will begin on 1 December and the present number of 3,000 coal miners will be increased to 10,000 at the earliest possible date.

According to a statement by TANAKA, chief of The Coal Section, MOJI Railway Bureau, the Government Railway has been planning the running of coal mines but has met with the opposition of the Commerce and Industry Ministry. The production of the SHIMEN Mine is only 10 per cent of the entire amount of coal used by the railway which belongs to the MOJI Railway Bureau, and, owing to its superior quality, will he used in SANYO and TOKAIDO Lines also.

Summary:

At the Cabinet meeting on the 26th, discussions were held on the abolition on the pension system. The Government has decided to institute a comprehensive social insurance system based on the existing Welfare Annuity Insurance Law. To study this project, the Government has decided to establish within the Welfare Ministry a Commission consisting of civilian experts and government officials. The Government is speeding up the drafting of the bill so that it may be submitted at the present Diet session. In case the bill is not completed in time, the Government will put the measure into effect by emergency ordinance.

So is also revealed that according to the new system, payment will be decreased by about 70 per cent for ex-servicement and by about 50 to 60 per cent for civil officials. Consequently the total amount is estimated at about 700,000,000 yen a year.

Extracts of the existing Pension Law and the welfare Annuity Insurance Law are as follows:

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ITEM 6 (Continued)

I Ordinary Retirement

II Retirement due to Injuries

III Death Benefits

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ITEM 6 (Continued)

IV Bearer of Expenditures.

DISTRIBUTION "X"

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