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Press translations [Japan]. Economic Series 0069, 1945-12-16.
Supreme Commander for The Allied Powers. Allied Translator and Interpreter Section.

translation-number: economic-0342

call-number: DS801 .S81



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GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS
ALLIED TRANSLATOR AND INTERPRETER SECTION
PRESS TRANSLATION
No. 342 Date: 16 Dec 45

ECONOMIC SERIES: 69

ITEM 1 Coal for Chemical Fertilizer Production - Nippon Sangyo Keizai - 12 Dec 45. Translator: S. Iwata.
Full Translation:
The conference on coal and coke, between the Government and fertilizer companies, was held under the auspices of the Ammonium Sulphate Manufacturers! Association on 11 December, 1945 at the TOKI[illegible]AYA, MARUNO UCHI. The members of the Association explained that the following quantities of coal and coke were absolutely necessary between December 1945 and March 1946 in order to restore ammonium sulphate production:
Month and year Coal Coke
December (1945) 93,500 29,925
January (1946) 112,900 31,725
February (1946) 109,830 28,425
March (1946) 131,940 28,425
Total Amount 448,170 118,500

In regard to this demand, the Commerce and Industry Authorities answered that coal for the chemical fertilizers, will certainly be supplied oven if coal for railways is not.
The following measures were proposed as necessary, to improve coal distribution: 1. Chemical fertilizer workers must be sent to aid in the coal mines; 2. Coal companies must transport coal by sailing vessels with motors attached; 3. Coal in stock for the Japanese Army and Navy is to be released.
As a result of the coal shortage, it is reported, several fertilizer companies have had to shut down.
ITEM 2 Food Import Promotion Conference - Nippon Sangyo Keizai - 11 Dec 45. Translator: T. Mitsuhashi.
Full Translation:
Confronted with the pressing food crisis, the Government has decided to set up a Food Import Promotions Conference (SHOKURYO YUNYU SOKUSHIN KAIGI) to accelerate the importation of foreign rice. Mr. NISHIYAMA, vice-chief of the Liaison Office of the Foreign Ministry, will assume the duties of chairman of the conference, and its members will be composed of senior officials of the various Ministries concerned. This was approved at the vice-Ministers Meeting of 5 December. The Conference will deal with the necessary contacts to be made to facilitate food importations.

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ECONOMIC SERIES: 69 (Continued)
ITEM 2 (Continued)
In addition, the Conference will have a simple investigation room where officials will collect and turn out data in connection with the problem. Its regular meeting will be held every Tuesday and Saturday to exchange information and to fix a program.
ITEM 3 Minimum Importation Needs Estimated in Relation to the Reparation Problem - Yomiuri Shimbun - 11 Dec 45. Translator: R. Aoki.
Extracts:
Through the report of Ambassador PAULEY we are now in a position to judge the general plan of reparations. Even in glancing through the report we can think of the tremendous influence of the reparation upon our national economy. The Japanese Government, therefore, must study the report carefully and must correct any misconceptions, if it has acted contrary to the intentions of the Allied authorities. Here we should consider the minimum requirements of our Nation as based upon the 1930 standard.
Food - Per capita consumption of food of the Japanese people in 1930 was estimated at 2,200 calories. We imported about 20 per cent of the basic materials of energy. According to the study of the Nutrition Research Institute, (EIYO KENKYUJO) the necessary requisite of a Japanese adult is 2,400 calories. In 1930 the average consumption of rice was estimated at 1.08 koku. Now, suppose, the population in 1949 - 50 is 82 million, and rice production, giving a fall allowance for increased productively, is 70 million koku. This means a shortage of 19 million koku, and JAPAN would have to depend on importation from abroad. Even calculating at the low import price of 1930 (34 yen per koku) the price amounts to 645 million yen. As for beans, the most important source of protein in JAPAN, consumption per head in 1930 was 14.7 kilograms. Using this figure as a base, the total quantity of consumption in 1949 - 50 is estimate at 1.2 million metric tons. Supposing the domestic production to be 350,000 metric tons; this means an importation of 850,000 metric tons at 187 million yen at the 1930 price. Consumption of sugar, another important source of human energy, was 13.8 kilograms per head (in AMERICA and ENGLAND, it was 50.0 kilograms, in GERMANY 30.0 kilograms). The total requirement in l949 - 50 will therefore reach 1.13 million metric tons. Domestic production is estimated at 30,000 kilograms, thus necessitating importation of 1.1 million metric tons, The price amounts to 253 million yen. The raising of barley, sweet potatoes, and Irish potatoes by home production is sufficient, but a large quantity of salt, vegetable and animal fats and oils must be imported. All in all, using the 1930 standard, JAPAN must import 5.7 million metric tons of food, the value being estimated at 1,213 million yen.
Fertilizer and Feed - JAPAN is in a position to supply its own needs for nitrogen compounds, but she must depend on foreign supply for potash. In addition to this, the import of soy been cakes, flakes, and ether products will raise the total import of fertilizer in 1949 - 50 to 2.25 million metric tons, or 260 million yen in value. Added to this, the Nation must depend on foreign supplies of feed. up to 1 million metric tons (120 million yen in value).
Clothing Materials - The requirements of textile products in 1930 were: cotton, 7.6 pounds per capita; rayon, 0.53 pounds; silk, 0.62 pounds; wool, 0.97 pounds; and hemp, 2.61 pounds, the total amounting to 12.33 pounds. Adjusting to the estimated population in 1949 -50, we must import in that year 1,110 million pounds or 580,000

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ECONOMIC SERIES: 69 (Continued)

ITEM 3 Continued

metric tons of clothing materials. The value amounts to 563 million yen.
Therefore, in order to take care of 82 million people, four or five years hence, at the low standard of 1930, we must import 1 to 6 billion yen of food, fertilizers and feed, and 573 million yen of clothing materials. Furthermore, other essential imports are estimated at 996 million yen. Thus the aggregate total of imports will reach 3.16 billion yen.
Since we are a defeated Nation, we should cut the consumption of sugar to one-tenth, clothing materials to one-third, and mineral oils, gum, paper, iron and steel to two-thirds. In this way, the world may save about one billion yen. With all humility JAPAN must rely upon 2.2 billion yen worth of foreign goods for her bare subsistence.
ITEM 4 Farm Land Reform Bill - Mainichi Shimbun - 12 Dec 45. Translator: S. Kinoshita.
Summary:
In Lower House committee meeting held on 10 December for deliberation on the farm land reform bill, Agriculture Minister MATSUMURA reported on MacARTHUR directives for agrarian reform. Expressing his belief that the reform bill now under deliberation conforms to the directives, the Minister said that whether not the Government must draft a new bill replacing the present [illegible]he is net yet known until SCAP reveals its views. He further said that, in addition to the present farm land reform bill, some other draft bill may be presented to SCAP by 15 March 1946, and some bills will be submitted to next Diet session while others will be enforced as emergency ordinances.
Regarding the payment-in-currency system of farm rent, the ministerial authorities revealed the followings: Under the payment-in-kind system, farm rent is apt to rise, due to fluctuations of prices of commodities; moreover, the system is unreasonable today when price of staple food is controlled by the Government. It is absolutely necessary to establish a payment-in-currency system which serves to make a reasonable farm, rent, thereby stimulating tenant farmers to increase productivity."
At the same meeting, Education Minister KAEDA voiced his opinion on the educational system in rural districts. He said that he would like to have the war-damaged, urban schools removed to rural districts, and making use of abandoned military establishments. In this way, concentration of schools in big cities would be minimized. He recognized that, as the result of enforcing the present farm land reform bill, big landowners will become extinct, and consequently very few country people will be given the opportunity to be educated in colleges or universities. The minister further added that he is contemplating the raising of the educational standards of rural public schools with additional lessons in science; be also intends to wipe out all militaristic elements.
The Ministry of Agriculture and Forestry decided the purchasing price per tan (about 0.25 acre) of farm land as follows: 1, Paddy field of medium productivity, 757.60 yen per tan; 2. Farm field, 446.98 yen per tan.
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ECONOMIC SERIES: 69 (Continued)
ITEM 4 (Continued)
The above figures apply to landowners who cultivate their own lands, and they are calculated on the basis of profits. derived from the cultivation of land. The official prices of farm lands in the possession of absentee owners are decided as follows; 3. Paddy field of medium productivity, 978.53 yen per tan; 4. Farm field, 577,33 yen per tan.
The above figures were computed by calculating on the basis of farm rent which the owner receives in kind. The farm land reform bill provides for the Governments[illegible]reimbursement of the difference between the above-two figures when the land is sold from landowner to peasants.
ITEM 5 Chief Posts of the MITSUBISHI Bank Shifted - Nippon Sangyo Keizai - 12 Dec 45. Translator: T. Mitsuhashi.
Full Translation:
The MITSUBSHI Bank, Limited reorganized its main office to create three new departments, the welfare, Accounts, and Investigation Departments, and at the same time shifted the chief posts as follows; Auditor for Local Branches, Mr. YOSHIDA, Toshizo (former Chief of the General Department); Chief of the General Department, Mr. YOSHIDA, shin (former manager of the ODENMA-Cho Branch); Chief of the Welfare Department, Mr. FURUKAWA, Naohiko (former vice-chief of the General Department); Chief of the Accounts Department, Mr. SUGINO, Chu (former vice-chief of the Examination Department); Chief of the Inspection Department, Mr. MATSUMURA, Hitoshi (former Manager of the NIHONBASHI Branch); Chief of the Investigation Department, Mr. NAGASHIMA, Tadao, (at the Main Office); Manager of the KYOTO Branch, Mr. YAMAKAWA, Sutejiro (former Manager of the MARUNOUCHI Building Branch); Manager of the MARUNOUCHI Building Branch, Mr. SAKANO, Nobuo (former Manager of the OJI Branch); Manager of the. OJI Branch, Mr. IKAWA, Naohiko (at the Main Office); Manager of the NIHONBASHI Branch, Mr. SHIBUSAWA, Kinzaburo (former vice-chief of the Special Financial Department) ; Manager of the NIHONBASHI-TORI-MAOHI Branch, Mr. YAMADA, Nobuichi (former Manager of the OMORI Branch); Manager of the OMORI Branch, Mr. ISHIGURO, Sadaichi (former Manager of the SHINAGAWA Branch); Manager of the OD[illegible]A-Cho Branch, Mr. YAMAMOTO, Kiyoka (former Manager of the S[illegible]ITA[illegible]A Branch); Manager of the SHITAYA Branch, Mr. OIKAWA, Kiyoshi (former Manager of the GINZA Branch); Manager of the HONJO Branch, Mr. OTA, Hisashi (former Manager of the EITAIBASHI Branch); Manager of the KIC[illegible]IJOJI Branch, Mr. KUBOTA, Yoshie (former Manager of the NAKA[illegible]Branch).
ITEM 6 Assessments should be made and investigations strictly conducted to enforce Two New Taxes to Prevent Evasions Hoarding - Nippon Sangyo Keizsai - 12 Dec 45. Translator: T. Okamura.
Summary:
The Ministry of Finance is now preparing the draft of a bill embracing a war-profit tax and capital levy to be submitted for approval to the Supreme Command by 31 December. There are demands that the Government conduct strict investigations and assessments at the time of the enforcement of the new taxes. The ministry is deliberating these measures earnestly. The taxes are to be introduced to check inflation and to stabilize national economic life by the fair redistribution of wealth. Opinions now current are summarized as follows:
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ECONOMIC SERIES: 69 (Continued)
ITEM 6 (Continued)
Since the project of enforcing a new war-profit tax and capital levy was revealed many individuals, as well as corporations, began to hoard and conceal properties and commodities in order to evade the heavy taxes, Some are even eagerly hoarding many goods to obtain greater profits in anticipation of the inflation due after the enforcement of the tax-project.
Conspicuous withdrawals of postal and banking deposits may be attributed to the high cost of living, but in many cases these deposits are withdrawn for hoarding purposes. Some corporations are said to have been using even their reserve funds. If this hoarding continues to spread, the tax project will lose its effect, and unfairness in distribution of the wealth of the nation will result in inflation, In order to check this unfavorable situation, it is necessary, first of all, for the Government to conduct an investigation and assessment of war profits and capital, and issue new yen notes at the earliest possible date. Legally, it is possible to enforce any emergency financial measure prior to approval of the bill at the Diet session, if an urgent imperial ordinance has been issued, but it takes time to issue new yen notes due to necessary preparations. It is, therefore, generally anticipated that it would be approximately April or May before the new notes will be issued. By the time it is greatly feared that tax evasion will be more flagrant and on a large scale, thereby further aggravating inflation. It is, consequently, highly important that the investigation and assessment of properties be very strict and fair. It is advisable to confiscate properties when any plot to evade the tax is discovered. Measures to be taken against such deeds are suggested as follows:
It is advisable to promulgate a law providing for the punishment of those who violate tax regulations. The act providing for the punishment of these who violate regulations of indirect tax payment is now in force, when such violations are discovered, revenue officials may confiscate any document, account book, or goods regarded as evidence. Officials are also authorized to inspect and search any goods deemed to be concealed, or examine any suspected criminal or witness. When such crimes are discovered, chief of the revenue office, without prosecuting criminals in court, can punish them either by fine or corporal punishment. On the contrary, in the case of the direct tax, the chief of the revenue office cannot take any emergency measure, even if he can prosecute such criminals in court. These regulations, however, have not been put into effect as yet. Enforcement of direct tax criminal 1aw in connection with the [illegible]taxes is opposed in some quarters is being contrary to the democratic way, but in order to conduct a fair distribution of capital, it is advisable to take vigorous measures for any such crime.
Increase of revenue officials is important to eliminate such crimes. Re-enrollment of repartriated ex-servicement or discharged workers is advisable.
Organisation of committee which investigate property, and are given necessary power for action, is also strongly advocated. The Government plans to organize property investigation committees (ZAISAN CHOSA IINKAI) in TOKYO and other places, which will be composed of civilian exports. Similar organizations, such as the Revenue Investigations, Committee (SHOTOKU CHOSA [illegible]NKAI), now in existence, are organizations which disregard their responsibilities. In conducting investigations, the committee members attempt to minimize assessments of taxes for their personal reasons. In view of the do facts, it is suggested that new committees be organized which will have final

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ECONOMIC SERIES: 69 (Continued)

ITEM 6 (Continued)

decision on investigations made by revenue offices. Thus the revenue offices are to be placed under the jurisdiction of the committee and are to conduct investigations and make assessments. It is also suggested that the committee supervise the action of revenue officials when the latter want to take legal action, as in the case of violations of regulations provided in the indirect tax law. Further, when tax payers are dissatisfied with the assessment of their capital or property, they are privileged to take the matter to the committee for solution.
Co-operation of the general public is desired. It is a matter of course that the Government will ask co-operation of the tax payers, but in order to make the project a success, interest of the general public is necessary. This can he shown by fair and whole hearted co-operation, either by way of contributing letters. or by similar means.

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HomePress translations [Japan]. Economic Series 0069, 1945-12-16.
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