Press translations [Japan]. Economic Series 0062, 1945-12-13.

Full Translation:

The Finance Ministry is hurrying preparations for the exchange of banks notes, and considers sometime around next June as the most appropriate time for it in view of the enforcement of the property tax. But the Finance Ministry is intensifying its technical preparations, in order to be ready one or two months earlier than expected to present the confusion of the transition period. The production of the plates has already been completed, and the pointing will start as soon as the manufacture of the paper is finished. As to the species of new bank notes, stress was put upon those of big amount such as 1000, 500, 100, 10 and five yen notes. One yen and 50 sen notes were not taken into consideration at first, but the rumour that one yen and 50 sen notes will not be exchanged has been spreading. As a result some people have been seeking to lay hold of these two small notes and there have been cases in which banks have had to stop giving change in these small notes. If things go on like this till the time of the new issue, there is some danger of bringing about a shortage of the small bank notes. To cope with this situation the Finance Ministry was driven to the necessity of altering its original plan end exchange even the one yen and 50 sen notes, and is due to get the permission of General MacARTHUR's Headquarters.

The new 1000 yen, and 500 yen notes alone will be as beautiful as before, printed on a concave plate. The designs will be entirely different from those of old notes, and the portraits on the notes will not be those of war gods or other symbols of militarism, but instead the (Godless of Mercy) on 100 yen note and two Deva Kingo standing inside the gates of Buddhist temples on 10 yen note. And further, to save time, an expedient method win be adapted in respect to the small troublesome notes. By cutting stamps on the former plates and changing the colors, the old will be circulated as new notes.

Summary and Full Translation (in part):

The Labor Union mill consists of five chapters and 37 articles, and aims at the establishment of the right to organize laborers, and the right to strike; The establishment of labor agreement and the right of group negotiations; and, the establishment of labor committees.

ECONOMIC SERIES: 62 (continued)

ITEM 2 (Continued)

It is clear that there is no other way for laborers who are individually powerless, to elevate their economic, social and political status, and to oppose the unlawful oppressions of the capitalists, than to resort to .joint power to be produced by their mutual unification. Therefore, the first article provides among, other things for the "guarantee of group rights and the protection and fastering of group rights for negotiations."

The bill also provides that the regulation provided in article 35 of the criminal codes will be applied to rightful actions of the members of unions, but it also provides that various laws, regulations or ordinances which so far prevented the normal development of labor unions will not be applied to any labor union movement so far as they are regarded legal. By these provisions, the regulations of the criminal code on the crimes of sedition and business obstruction will not be applied, nor will any laborer who hitherto was punished by the police criminal violation law when he requested an interview with his employer be punished.

Some people insisted on making an independent bill for labor agreement, but the agreement was included as one chapter of the new bill. The agreement clarifies the responsibilities to be assumed by labor unions and capitalists respectively, formalities, extent of application of agreements, and the methods for promotion of efficiency and the maintenance of stability in industry, by the joint efforts of both laborers and capitalists. Representatives of labor unions or those who are entrusted with trusteeship by labor unions are given the right to negotiate with capitalists concerning labor agreements and other matters (provided in Article 10). This provision seems to protect the right of group negotiations.

The agreement also provides that capitalists can not discharge or give disadvantageous treatment to laborers for the reason that they are members of unions. Capitalists can not at the same time set entry or resignation from unions as employment conditions. These regulations are noteworthy in that they neither belong to "Open shop" nor "closed shop."

One of the characteristics of the newly promulgated bill is the organization of the labor committee. The committee will be composed of equal numbers of committee members representing labor, capital and neutrals, and handle the following affairs:

• 1.Drawing up of statistics concerning labor disputes, and investigation of labor conditions.
• 2.Sponsorship of group negotiations and prevention of labor disputes.
• 3.Arbitration or mediation of labor disputes.
• 4.Constructive advice for the betterment of labor conditions.

The members of the committee will be provided with power which is comparable to that of governmental officials. Open committee meetings will be held, and every problem will be solved with the aid of public opinion. Other privileges given to the committee include:

• 1.In dissolving a labor unions, a formal proposal from the committee will be essential (provided in article 15). - 2 -

•   ECONOMIC SERIES: 62 (continued) ITEM 2 (Continued)
• 2.The committee may issue directives for the amendment of regulations of labor unions by the decision adopted at the committee meeting in case a union is not operating in agreement with laws or ordinances. (provided in article 8).
• 3.In case of arbitration, the committee has power to issue directives ordering personal presence the submission of documents or account books, the power to inspect factories or work shops (provided in article 29).
• 4.The right to advice for the improvement of treatment for laborers who are not members of labor unions. (provided in article 32).

These are the most vital points regulating the rights of unity and striking by laborers, the labor agreement and the labor committees. Compared with similar provisions issued so far, the new bill may be said to be very progressive. Another characteristic of the new bill is the broad meaning of the word, laborer, to include, besides physical laborers, also brain workers. In these cases, we have two problem worth discussing. One is on what basis we should distinguish between laborers and capitalists, end the other will be the problem of governmental officials. It is generally anticipated in this connection that the pasts of managers in corporations captains in shipping firms will be the status to distinguish the capitalists and laborers.

Views representing laborers' and capitalists' circles regarding the provisions of the new bill are summarized as follows. According to laborers' opinions, the organization of the labor committees will be a difficult task, though the privileges of the committees are very strong and wide. The "neutral" committee members, in many cases, are supposed to take an advantageous attitude toward capitalists, and they will be disadvantageous to laborers in handling disputer. Though the provisions of Article 15 regulating the dissolution of labor unions contains a clause saying, "in cases they frequently violate laws and ordinances or disturb the peace and order", there are many possibilities for disadvantage to laborers in the interpretation of the clause.

Observations of capitalists assume the possibilities of abstructing smooth negotiations between capitalists and laborers by the appearance of so-called "labor brokers'' when the right for group negotiation is granted to those who have been given trusteeship by labor unions as provided in Article 10. The provisions of Articles 23 and 24 which admit the labor agreement to be applied on certain conditions to other laborers than union members will not be welcomed by capitalists who have been maintaining a low wage policy. As for the labor committees, capitalists may entertain a viewpoint opposite to that of laborers. Though the labor agreement in its provisions provides that laborers can not go on strikes in violation of regulations provided there in, if they propose the arbitration or mediation in connection with disputes regarding the articles of agreement (provided in article 25), the lack of provisions regulating punishment to be given in such actions will weaken its meaning.

At the proposal of the Progressive Party, the clause prohibiting the use of a selfare fund of labor unions for the political movements was amended, but this clause has now again been amended in its final draft, for the reason that it is illogical to prohibit the use of the fund only for political movements when it is allowed to be spent for social welfare. Dissatisfaction is anticipated to be expressed in this connection by members of the progressive party.

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ECONOMIC SERIES: 62 (Continued)

Summary:

The final draft of the Labor Union Act passed through the Cabinet meeting of 6 and 8 December, and will be presented to the Diet on 10 December. The original draft was formulated by a special committee and passed through the Cabinet meeting of 2 and 4 December, and since than the scruting of the Allied Headquarters. Since the first abortive bill of this kind was presented to the Diet 15 years have eloped. The imminent passage of the present bill will be a milestone in the progress of democratization of the nation. Here a few points most prominent in the revised draft will be mentioned in comparison with original draft.

The purpose of the Act is stated in the first article: "The purpose of the present Act is to elevate the position of labor and thereby to contribute to economic progress by guaranteeing the right of organization of labor and by protecting and encouraging joint contracts." The social and political purposes included in the original were eradicated.

The foregoing first article ends with a clause that "Article XXXV of the Criminal Law shall be applied to the acts of unions in order to attain the aforesaid purpose." This is, in fact, to legalize picketing and other union activities. Article IX of the revised draft forbids police, wardens, and firemen to form such organizations.

The revised draft eradicated a clause which made labor unions liable for the damages incurred from disputes arising during mediation under the term of contract. Article XIII of the new draft authorizes the diversion of specified union funds to other purposes, subject to the approval of the general meeting. Article XVIII specifically exempts unions from income and corporation taxes. Finally, the new draft forbids, under penalty, exployers from discharging or otherwise discriminating against employees because of their union membership.

Summary;

If PAULEY's Reparation program be put into force, JAPAN will at first be confronted with a problem of shipbuilding, for most of the staple commodities must be imported from abroad and this requires as much tonnage as is available. This will be one of important problems to be solved.

As for machine tools, we have now about 780,000 machine tools, and though 300,000 to 400,000 of them are to be removed, we can manage to meet the public demand, in manufacturing general machinery. It depends entirely upon the working capacity of the remaining machine tools. We can also manage to manufacture 12,000 more machine tools even though our working capacity be halved.

The amount of iron and steel required for maintaining the people's livelihood is as much as 3,000,000 tons, while iron end steel production is estimated at 750,000 tons in the next year, owing to the shortage of raw material in stock. We must import iron and steel to cover the shortage, apart from the reduction of working capacity. Four

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ECONOMIC SERIES: 62 (Continued)

ITEM 4 (Continued)

hundred thousand tons of soda and 210,000 tons of soda ash are needed in our chemical Industry, while the production capacity is 170,000 tons of soda end 150,000 of soda ash. Four hundred tons of sulphuric acid is also need, while production capacity is 430 tons. The reduction in production capacity will therefore have a serious effect upon our chemical industry unless the present demand-supply schedule he changed.

As for light metal, we have now a good amount in stock to meet the public demand for the time being. After it is consumed, we must import it from abroad.

As far electric power, even though half the number of the present steam power stations are to be removed, we will have no disturbance of electric enterprise, because we can make it up with hydroelectricity which is plentiful here in JAPAN.

In conclusion, we must point out that the post-war schedule of all the industries must be set up and a scientific rationalization of our industry must be brought about so as to have top efficiency in our peacetime industries. This will be our greatest economic problem.

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