Press translations [Japan]. Economic Series 0127, 1945-01-05.

Full Translation:

The program to provide for the supply and demand of coal for January1946 was decided upon by the Ministry of Commerce and Industry and reported in the cabinet meeting on 30 December by Minister OGASAWARA. The amount of coal to be committed to distribution, according to the program, will be increased by 60,000 metric tons beginning with December1945. This amount will be assigned to the railway services, basic industries of iron, salt, and fertilizer, for heating in. HOKKAIDO, for exportation in general, for making coal-gas (for light) and cokes, and for home use (restricted to an amount that permits the minimum standard of living).

To supply sources: for the increased production of coal.

To shipping: for transportation of coal and commodities in general.

To foreign regions: 70,000 metric tons for KOREA, 7,000 metric tons for HONG KONG.

To railway services: they had been given an increase of 50,000 metric tons from the previous month; services are not, however, essentially improved due to snow falls and deteroriation.

To iron manufacture; for heating in three of eight factories; one of four steel-pipe factories in YAWATA; three of seven factories in WANISHI; one of four factories in KAMAISHI; factories in HIRCHATA remain as yet without supplies, one of them (there are two plants), will be compelled to stop if left to its own stocks.

For making gas and cokes; for use in six greater cities as well as IDIROSHIMA.

For manufacturing ammonium sulphate; for preparing fertilizers as collateral for (rice) deliveries (a reasonable amount of coal has been distributed already).

For salt-manufacture: has been given as much as yielding capacities of extaut salt ponds will allow.

To others: majority of 150,000 metric tons for Occupation Army, the rest for preparing articles requested by the Occupation Army and medical institutions in general.

The program of supply and demand is as follows:

(Including 10 to be disposed of at WANISHI to the JAPAN Steel Company MITTETSU)

- 2 -

ECONOMIC SERIES: 127 (Continued)

ITEM 1 (Continued)

Refineries are in poor condition because of the lack of capital and necessary materials, unsatisfactory labor sources, and so on.

As the coal supply becomes smaller, more and more high temperature furnaces will cease operation. This necessarily, influences the production of gold, silver, copper, lead, zinc, and so on, and urgent effective measures are requested by the industries concerned. Mining industrialists are taking negative measures due to the persimictic outlook on conditions seen in production data, especially that with regard to the supply of coal and coke assigned to refineries, and the number of high temperature furnaces being shut down, despite the fact that they are endeavoring to make use of lignite and coke. Since the coal supply has [illegible]refineries at MURAKAMI, HIBI, YOKKAICI, NAOJIMA, MIYAKO and ASHIO have stopped work. Others, at HITACHI, OSARUSAWA, KAMIOKA, MILKE, HIKOJIMA, KOSAKA, SAGA-NO-SEKI, HOSOKURA and HATSUS KARI are coming to the same point. Even the predicted output in 1945 and in 1946 will be very difficult to attain.

The Ministry of Commerce and Industry estimates the output of metals as follows;

As for lead and zinc, the shortage of labor sources will more seriously affect production than shortage of coal. As for copper the shortage of coal and the problem of labor are the chief causes for holding back production. These conditions which prevail are also causes for the decrease in production of gold and silver, which must be corrected by immediate measures.

Checking decreased production of lignite

The increased production of liquite is urgent in order to alleviate the serious conditions which have arisen out of the shortage of coal. The production of lignite decreasing since the termination of the war. Those concerned are demanding that immediate, concrete measures be taken by the authorities based on the principles decided in the cabinet me time on 13 December, regarding the "increased production of lignite and encouragement of its use."

In spite of the 1945 plan for a lignite output of 2,500,000 metric tons, the output actually attained in the first six months was 738,000 metric tones. The estimated output in the latter half of the year was set at only 700,000 metric tons. Shortage of labor became acute, since Korean

- 3 -

ECONOMIC SERIES 127 (Continued)

ITEM 1 (Continued)

laborers were being repatriated, and Japanese laborers, owing to the high cost of living, were leaving the mines in great numbers. This made a sharp decrease in production inevitable.

Actual output since April (in 1,000 metric tons): April - 174; May - 15; June - 108; July - 93; August - 109; September - 93; October 60.

Local production to the end of October: the TOKOKU Region: 367,000 metric tons; the Eastern region: 338,000 metric tons; and the Western region: 92,000 metric tons.

In order that these deplorable conditions might be improved to some where near the standards of 1943, where monthly production stood as high as 280,000 metric tons, the following measurements must be taken, in line with Government decisions: 1. Increase the rice ration for laborers concerned; 2. Necessary commodities and materials must be assured props, powder, carbide, etc;, 3 More efficient collection and distribution of coal.

Others are demanding a revision of the prices of lignite and lignite coke and are submitting their request to local governments.

DISTRIBUTION "X"

- 4 -