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Press translations [Japan]. Economic Series 0081, 1945-12-20.
Supreme Commander for The Allied Powers. Allied Translator and Interpreter Section.

translation-number: economic-0396

call-number: DS801 .S81

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No. 396 Date: 20 Dec 45


ITEM 1 Supplementary Budget for Public Works in Toyama-Ken - Hokkoku Mainichi - 12 Dec 45. Translator: S. Zwata.
The TOYANA-Ken, Authorities introduced the 1945 supplementary budget for public works restoration expenses, amounting to 26,975,049 yen before the Ordinary Session of the Prefectural Assembly. This Assembly convened to complete the emergency repairs of roads, bridges, embankments and shores, which were damaged by winds and floods from February to October, 1945. This repairs are being carried out for the people's welfare, for the development of industry, and for the relief of unemployment. The following figures give details of the works:
Embankments 241 18,893,819
Breakwaters 35 3,758,573
Restoration of Walls to Prevent Sand Encroachment. 7 114,872
Roads 180 1,375,900
Bridges 29 876,291
Surveying 1,000
Miscellaneous 1,049,320
Auxiliary Public Works 905,346

The funds for these expenses come from transferred accounts (649 yen), subsidiary budget accounts (17,572,000 yen), and the floation of loans (9,402,000 yen). Furthermore, 60 per cent of the expenditures for public works construction are subsidyed by the National Treasury, and the other expenses which are to be paid by floating loans will lighten the people's burden considerably. Such an expenditure for public works has never yet been experienced in this prefecture.
ITEM 2 Shipbuilding Industry to Be Used for Reparations - Yomiuri Hochi - 14 Dec 45. Translator: R. Shibata.
Full Translation:
The report by Ambassador PAULEY has clarified for us the American policy on reparations. According to the report, equipment from about twenty shipyards is to be removed. The problem of what kind of

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ECONOMIC SERIES: 81 (Continued)
ITEM 2 (Continued)
equipment will be taken away and what plants will be left has created a great sensation among Japanese industrialists, particularly in the shipbuilding industry, which is the only heavy industry left in JAPAN at present. An earnest study of the problem is now being made.
The fundamental principles under which the Allied Powers are acting are:
JAPAN must be prevented from re-establishing her heavy industry through shipbuilding.
The financial clans (ZAIBATSU) must be made incapable of recovering their power by means of the shipbuilding industry.
The Japanese shipbuilding industry must be absolutely prevented from ever recovering sufficiently in the future to compete with the Allied Powers.
The removal of equipment must be carried out mercilessly and without regard for the rise and fall of any company.

In its positive phases the policy includes the following two points.
According to the POTSDA' Declaration industries producing civilian goods are to be permitted to exist to the extent that it is necessary to stabilize Japanese national life. (In this connection, Mr. PAULEY stated that permission will be given for the building of ships of less than 5,000 tons).
Equipment necessary for the repair of shipping of the Occupation Forces will remain.
The specific items to be removed, therefore, are:
Equipment held by the financial class.
Large scale equipment.
Superior equipment (including foreign-made machines).
Equipment involving whole phases of production (complete units are to be removed instead of individual pieces of equipment).

The shipyards to be handed over for reparations are:
(1) Several of the six MITSUBISHI yards, (2) One of MITSUI's shipyards, (3) three of NIPPOF Steel Co. plants (NIPPON KOKAN), (4) two of KAWASAKI Heavy Industry (KAWASAKI JUKO) plants, (5) one plant of the URAGA Docks, (6) five of the HITACHI shipyards (HITACHI ZOSEN), (7) three of the KAWANAMI Shipyards (KAWAWAMI ZOSEKI), (8) FUJINAGATA Shipyards (FUJINAGATA ZOSEN), (9) HAKODATE Dockyards, and (10) ISHIKAWAJIMA Shipyards (ISHIKAWJIMA ZOSEN).
Also to be handed over are any remaining medium-sized shipyards capable of complete production of ships.
ITEM 3 Former NAKAJIMA Corporations will Continue to Produce Commodities for Civilian Use - Nippon Sangyo Keizai - 15 Dec 45. Translator: T. Okamura.
Full Translation:
"Production of commodities for civilian consumption will be carried
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ECONOMIC SERIES: 81 (Continued)
ITEM 3 (Continued)
on by all subsidiary factories under the jurisdiction of the former NAKAJIMA Concerns, in line with the directives issued by General Headquarters," stated Mr. NAKAJIMA, Otsumihei, President of the FUJI Industrial Company, formerly called the NAKAJIMA Aircraft Manufacturing Company.
The FUJI Industrial Company and the MIZURO Industrial Company, formerly the MAKAJIMA Aircraft Metal Manufacturing Company, at their general meeting of shareholders on 15 November decided to establish small factories by reorganizing all their former plants. They have been conducting preparations for the reconversion of former munition factories into peacetime industries by authorilization of the Ministry of Commerce and Industry. These corporations, however, by the 12 December directive of the Supreme Command, ordering the freezing of assets of corporations managed by the ZAIBATSU and other major shareholding companies, were compelled to drastically alter their established policies.
In connection with the new policies of his corporation President NAKAJIMA said, "Directives from the Supreme Commander to the ZAIBATSU are summarized in three points. They are, first, to stabilize national life by developing peacetime industries; secondly, to democratize all industrial and economic structures; thirdly, to enforce payment of war indemnities in kind."
According to the former munition industry magnate, it is necessary for any corporation to start producing commodities for civilian use at the earliest possible date, in order to meet the requirement of the Supreme Commander, which aims at the stabilization of national life.
President NAKAJIMA went on to say, "If the breaking up of ZAIBATSU is necessary for democratization of JAPAN, we should act as directed by the Supreme Commander. It is only natural, therefore, that heavy industrial equipment and accommodations belonging to the ZAIBATSU be taken away as indemnity first, for such are only fundamental measures essential in dissolving the structure of the ZAIBATSU."
Mr. NAKAJIMA said that his corporations were all conducting preparations for early reconversion from war to peace industries. "Even those factories which are anticipated to be taken away as indemnity are also preparing reconversion in order to produce civil commodities until their workshops are ordered to close at the irrue of another directive," President NAKAJIMA said.
Speaking of new corporations which are allowed to be established, at the general meeting of shareholders held on 15 November, Mr. NAKAJIMA said that he wished to realize the project as scheduled. He did not think that General MacARTHUR would disrupt the established plans of his corporations, since all plants are not to be handed over immediately. He revealed his intention of utilizing all subsidiary corporations under separate management, and said, "All available corporations under the jurisdiction of these two vital holding companies will be managed as independent organizations by severing their accounts from their holding companies. "When these minor corporations start operating on their independent accounts, I shall ask the Supreme Commander to release their assets, and then I think we shall be authorized to establish independent corporations."
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ECONOMIC SERIES: 81(Continued)
ITEM 3 (Continued)
In conclusion NAKAJIMA said, "I believe to do so, is to follow the directives of the Supreme Commander, and this means industrial democrotization. At present some of my corporations are producing raw materials for reconstruction work, and we intend to manufacture goods for civilian use on a larger scale hereafter."
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HomePress translations [Japan]. Economic Series 0081, 1945-12-20.
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