Press translations [Japan]. Economic Series 0077, 1945-12-19.

Summary:

In view of the recent import situation, an increase in the production of raw silk and silk textiles is keenly urged in order to provide goods for reparations.

The YAMAGUCHI prefectural authorities recently started to take steps to supply the demand. Before the war, 500,000 kan of cocoons per year had been produced in that prefecture and more than 3,000 chobu of mulberry fields were under cultivation. The conference, which concerns the reconstruction of sericulture, was held at the end of November at the Assembly Hall of YAMAGUCHI Ken and attended by forty businessmen connected with sericulture. The following resolutions were approved:

• 1.To give an impetus to sericulture industry - for this, the co-operation of public leaders is needed, and cocoons would be recognized as important as other agricultural products.
• 2.Management in sericulture industry - for this item, each town, village or tribe would be selected as a unit of management, and technical advancement would be carried out effectively. Instruments for cocoon paper would be perfected.
• 3.Acquirement of areas of mulberry fields - in order to prevent a scarcity of mulberry fields, a special distribution of food for seri-culturists should be considered.
• 4.Expansion of mulberry fields - according to the five year plan of the prefectural authorities, fields would be increased to 560 chobu, producing 50,000 kan of cocoons by the end of five years.

Full translation:

Mr. UEKI, Chief of the Monopoly Bureau(SENBAI-KYOKU), replied to the interpellation by Mr. MATSUURA. Ihef, [illegible]Independent, on the importation of salt at the Salt Monopoly Law Committee (SHIO SEMBAI HO) of the Lower House on 13 December as follows:

"Collateral goods and the discharge of labor required for salt importatic still remain problems of prime importance. Allied Headquarters is likely to permit our salt imports from CHINA, which amount to 100,000 metric tons, for that is required to supplement our home supply of salt. A

ECONOMIC SERIES: 77 (Continued)

ITEM 2 (Continued)

plan has been decided upon to expend some 1,060,000,000 yen in the 1945-46 fiscal year to provide more equipment for the production of salt. Moreover, a plan for salt self-sufficiency, the materialization of which may cover several years, is being studied; a plan for expenditures by means of an extraordinary treasury contract shall be submitted in the forthcoming session of the Diet.

Summary:

The chaotic conditions prevailing in industrial and commercial circles throughout the country are attributed to inactivity in producing peacetim[illegible]goods, caused by the following conditions: (1) an obscure failure in the economic world; (2) shortage of staples such as food, iron, coal, and salt; (3) the lack of capital.

We are in an ironic situation, with plenty of labor yet without production. This situation requires that something be done to prevent an economic breakdown. Issues are being decided as to whether or not large scale firms should be built up in anticipation of the recovery of foreign trade. Questions should be decided whether medium and small enterprise should be given ranking positions, whether direct distribution from producers to consumers, as urged by trade unions, should be put into effect, and how to better relations between large enterprises, department stores, small and medium sized retailers and street vendors. An opinion revealed by the Commerce and Industry Ministry authorities follows:

Recovery of commission agents and middlemen is urged. Merchandise should follow the track - producer to wholesale merchant to commission merchant to retailer to consumer. Wholesale merchants will bear the responsibility for wholesale buying on a well conceived plan and will run all risks arising from the deal.

Large enterprises with superior personnel and equipment will take the lead when trade has expanded into foreign countries. However, economic activities intended to be within the country will be assumed by smaller enterprises. In other words, large and small enterprises will reinforce each other in their own field, in the attainment of the country's prosperity.

Retailers will run their business under their prefectural governor's supervision, but street dealers are not legally entitled to carry on their trade, being liable to the charge of underselling the official price and tax evasion. The best measure to eliminate them will be the encouragement of the healthy development of retailers, which will require establishment of a good distribution system. Co-operation between retailers, who have freer choice in the place of trade, and department stores, which are limited in the choice, will be hard. Street stalls will be eliminated if the department stores and retailers organize an association to enable them to pursue their trade without friction.

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ECONOMIC SERIES: 77 (Continued)

ITEM 3 (Continued)

Ideas expressed by TOKYO City Commerce and Industry Union Association (TOSHO KUMI KYOKAI) are as follows:

• 1.Two kinds of trade associations, one compulsory, another optional, are anticipated, which, according to the opinion among traders, will require a drastic revision of the current Commerce and Industry Law.
• 2.Recovery of the commercial system from chaotic conditions caused by the war, hospitality to customers, improvement in quality of goods, and allowance for competition between dealers are also anticipated. Because the POTSDAM Declaration prohibits large scale business, middle-sized enterprises will flourish from now on. An organization to supervise and encourage the development of commerce is desired.
• 3.Before the war, JAPAN had 4,500,000 merchants, 1,500,000 industrialists, and 6,000,000 farmers. Full consideration must also be made in deciding which areas shall be taken by commerce or industry.
• 4.Unions have been financed by the Commerce and Industry Control Bank, whose personnel were appointed by the Government. This resulted in a bureaucratic administration. The leaders of the Bank from now on should be elected in a more democratic way. The same applies to the management of consumers' associations. Lastly, the labor unions will be guided to enhance the productivity and the development of industry, instead of indulging in destruction and strife.

Summary:

The coal mining industry in JAPAN is characterized on the one hand by a high degree of management and, on the other hand, by bad working conditions in the pits. As early as 1921 a strong coal cartel was formed, the Federated Coal Mine Industry (SEKITANKOGYO RENGOKAI). This body, representing the MITSUI, MITSUBISHI and a few other interests virtually controlled the entire coal industry in JAPAN. Since 1931, this control was strengthened under many wartime measures.

Contrary to the capitalistic tendency, the technical aspect was not furthered. It is especially so in the case of the middle or small scale mines, and there, the use of the shovel and other hand tools are still in common practice. There is also backwardness of general working and living conditions. It is just such retarded technical advancement which caused the present coal crisis, together with the desertion of miners during the confusion which followed the end of the war.

Because of the critical coal situation, on 7 December Allied Headquarter issued a directive to the Japanese Government. In reply to this, the Japanese Ministry of Commerce and Industry submitted its program for the rehabilitation of coal mines. The ministry's program may be classified under four headings: 1. Repatriation of Chinese and Korean miners; 2. Recruiting of domestic miners in place of former foreign miners; 3. Adoption of a compulsory financial system by mine operators and 4. Establishment of an independent coal administrative board and the general improvement or modernization of working conditions, with the institution of more cultural equipment. In addition, there should be a recognition of miners' unions.

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ECONOMIC SERIES: 77 (Continued)

ITEM 4 (Continued)

In the above program, the financial measures may simply be to subsidize the already fattened capitalist with a handsome allowance of 300 million yen. The future of coal production depends rather upon the extent of modernization of conditions, doing away with feudalistic features, such as the criminally cruel dormitory system (HAMBA) and "prison room" (KANGOKU-BEYA) (TN: Prevalent in HOKKAIDO). The fact that, in spite of the great unemployment at present, the mines feel difficulties in recruiting new man, amply demonstrates that working conditions are unbearable. The present crumbling condition of Zaibatsu makes the picture more gloomy, but the nationalization of coal mines will show the way to a rational solution of the problem.

Distribution "X"

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