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Press translations [Japan]. Economic Series 0193, 1946-01-22.
Supreme Commander for The Allied Powers. Allied Translator and Interpreter Section.

translation-number: economic-0885

call-number: DS801 .S81



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GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS
ALLIED TRANSLATOR AND INTERPRETER SECTION
PRESS TRANSLATIONS
No.885 Date: 22 Jan 46

ECONOMIC SERIES: 193

ITEM 1 Food Dealers Associations To Be Reorganized - Nippon Sangyo Keizai - 21 Jan 46. Translator: Z. Konishi.
Full Translation:
A public outcry has been raised for a reorganization of the system of food production and distribution to meet the present food crisis and this outcry is spreading with the growth of the democratic movement. The Agriculture Association is gradually taking steps for a democratic reorganization based on the revision of the Agricultural Bodies Law (NOGYO-DAN-TAIHO*). However, on the other hand, the Food Dealers' Association (SHOKURYO EIDAN) is still keeping to the old system. When one considers the problem, however, it seems that the stage has been reached where its reorganization is inevitable.
After the war ended, the Central Food Dealers' Association (CHUO SHOKURYO EIDAN) was obliged to give up its main line of business which was storage work, and at present, their only business is small scale food distribution, cleaning of wheat etc. In point of fact, this corporation has had its business suspended. On several occasions before this they have been confronted with dissolution or reorganization. Taking this into consideration, Mr. NARITA, President of the Corporation, tendered his resignation to the government last autumn. The Government, however, has not as yet taken any steps to deal with this problem. But a definite step seems indicated in the near future.
The outline of a reorganization plan submitted recently to the authorities by the Central Association is as follows: The present Central Food Dealers' Association should be dissolved, and in its place the new National Federation of Food Dealers' Associations (ZENKOKU, SHOKURYO EIDAN, RENGO KAI) should be established, based on the former system of the National Federation of Rice Dealers (ZENKOKU BEISHO RENGO KAI). The new body is to be an organ: for the guidance of, and liaison among, the local food dealers. Its officers would be appointed by public election. The business of cleaning wheat and milling would be returned to the new body. The Korean Rice Association (SENMAI KYOKAI) is to be organized as a part of this body to undertake the import of Korean rice in the future. Each local food dealers' association would organize an employees' union and undertake independent operation.
ITEM 2 663,755 Chobu for Sweet Potatoes, 4,000 million Kanme of Pumpkins Decided - Sangyo Keizai - 21 Jan 46. Translator: S. Iwata.
Summary:
The Ministry of Agriculture and Forestry has decided to increase the area of land under cultivation for sweet potatoes in 1946 to 663,785 cho-bu from 540,000 cho-bu. This decision was made in view of the progress of land reclamation. Instructions regarding this increased acreage will not be given to the prefectural governments

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ECONOMIC SERIES: 193 (CONTINUED)
ITEM 2 (Continued)
concerned until the Ministry has collected the reports of reclamation progress and decided on the acreage to he planted.
At first, it was scheduled that the 663,785 cho-bu would consist of the 540,000 cho-bu planted last year, 60,000 cho-bu converted from mulberry farms, 34,000 cho-bu converted from tea-farms, 6,000 cho-bu from orchards, and 20,000 cho-bu from other farm lands. This plan, however, was abandoned owing to various circumstances. The above plan was decided on as reclamation had been progressive and a crop of 132 million kan of sweet potatoes is assumed.
The Ministry of Agriculture and Forestry has decided on a concrete plan for pumpkin cultivation. War damaged land will he utilized and orders will be given to the prefectural governors to help put the plan into effect as the authorities will be able to purchase the seeds. According to this plan, war-damaged land which can not be rehabilitated by October 1946, sites beside rivers, residential land, inclined land, and banks and dikes will be utilized to encourage the early sowing of seeds.
The pumpkins, whose total quantity will be 4,000 million kan, will be used as a substitute for staple food, amounting to 2,000 million, kan of barley and wheat and 2,000 million kan of rice. The 4,000 million kan of pumpkins will be consumed in a little less than five days as compared with about four million koku of rice in a month throughout the country. But its importance is not to be underestimated in view of the food situation.
The quantity of seeds is estimated at 6,000 koku, including the seed stocks of farmers. The Ministry of Agriculture and Forestry will supply the seeds, except the seeds for the farmers' use, and will bear part of the expenses for the utilization of the war-damaged land.
ITEM 3 The Three New Tax Bills - Part 9 - Tax Rate and Examples of Tax Calculations by NATANABE, Kikuzo - Nippon Sangyo Keizai - 21 Jan 46. Translator: T. Okamura.
Summary:
7. Tax Rate.
The taxation rate for class A property increase is as follows: On amounts lower than 100,000 Yen, 60 per cent; on amounts exceeding 100,000 Yen, 80 per cent; and on amounts exceeding 300,000 Yen, 100 per cent.
The rate of class B property increase is as follows: On amounts lower than 100,000 Yen, 10 per cent; on amounts exceeding 100,000 Yen, 20 per cent; and on amount exceeding 300,000 Yen, 30 per cent. The tax rate and the tax exempt amount will be applied to the entire increased property of the family at the time of the assesment.
8. Examples of Tax Calculation.
The following are examples of tax calculations in different cases which may serve to help the understanding of the readers: -A- Take a non-war stricken family of five members including the head of household who had property worth 5,000 Yen at the beginning of the period in April 1940, and 50,000 Yen at the end of the period of the investigation. The rate of rise in commodity prices which is taken into consideration in this process is tentatively fixed at 100 per cent. As pointed out before, furniture, and cocking utensils which are vital for daily life are to be exempt from the calculation. The property increase tax for this family will be calculated in the following way: Deduct 5,000 Yen from 50,000 Yen, and another 10,000
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ECONOMIC SERIES: 193 (Continued)
ITEM 3 (continued)
Yen which is designated a basic subtraction. The remainder amounting to 35,000 Yen is calculated as net property increase. Since the rate of commodity price increase is set at 100 percent this remainder is to be classified into two items of 30,000 Yen and 5,000 Yen, belonging to Class A and Class B property increase categories respectively. Calculated at the rate of 60 per cent for class A category, this family's property increase tax is 18,000 Yen. The property under the B class category is exempt from taxation as it is less than 10,000 Yen.
The property tax for this family will be 2,000 Yen, which is calculated as follows: Out of 50,000 Yen, deduct 18,000 Yen which is the property increase tax, and 10,000 Yen, which is the unified subtraction amount for five family members at the rate of 2,000 Yen per capita. The rest, to the amount of 22,000, is the net property subject to 10 per cent property tax. However, since the surplus amount exceeding 20,000 Yen in the taxable estimate is exempt from taxation, the property tax for this family is set at [illegible],000 Yen. This family thus is liable to the payment of 2,000 Yen and 18,000 Yen as property and property increase taxes respectively.
Take the case of a non-war stricken family of five members, whose property on 1 April 1940 was 1,500,000 Yen, and at the property investigation date was two million yen. The property increase for this family is 500,000 Yen. Deduct 10,000 Yen which is the basic subtraction from the amount. This leaves 490,000 Yen, which is the taxable property increase. This taxable amount is all classified into class B property increase category, and its tax is calculated at 107,000 Yen. The property tax for this family will be levied on 1,883,000 Yen, which is the remainder of 2,000,000 Yen after deducting 107,000 Yen, which is the property increase and 10,000 Yen, which is a basic subtraction for five family members at the rate of 2,000 per head. Thus the property tax for this family is 749,850 Yen, aggregating 856,850 Yen when its property increase tax is included.
9. Reports, Statements, etc.
Reports, statements, investigation, decision and appraisal for the increased properties, appeal, administrative litigation, collection of tax, and punishment in connection with the property increase tax are to be treated as in the case of the property tax.
The term for the tax payment is limited to the end of February 1947. The collection of the tax based on a rough assessment of properties, prior to the tax payment date, the payment in kind such as by land or buildings, and the postponement of the payment are also acceptable in the case of property increase taxation. This bill will take effect on the date of promulgation.
ITEM 4 Ministry of Commerce and Industry to Expedite Reconversion - Mainichi Shimbun.- 21 Jan 46. Translator: S. Kinoshita.
Summary:
Though conversion of large wartime industries into peacetime industries obviously has a most important bearing upon national living conditions, thus far no speedy progress has been made. The lack of speed maybe attributed to:
The extent of reparations not yet being clear, capitalists fear that their equipment may be confiscated.
Floating capital is hard to obtain. Banks hesitate to finance activities with government indemnification plans as they are.

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ECONOMIC SERIES: 193 (Continued)

ITEM 4 (continued)
Materials reserved at present are enough only for from three to eight months' operations, and replenishment is uncertain.
Entrepreneurs fear that if they resume production at present inflated costs, they might undergo a loss on account of price ceilings which would be settled at a lower base in future.

To cope with these circumstances, the Ministry of Commerce and Industry is now studying employee participation in the management of industry. A new organization, the Production Management Council (SEISAN KANRI KYOGI KAI) should be organized by the representation of all employees including engineers and clerical staffs of the office, the function to be to consult with and to offer proposals to the owners on all matters relating to business management, and to spur idle capitalists to increase effort. The body maybe organized by representatives of both employers and employees if circumstances make it advisable.
The Ministry is further studying the advisability of establishing new corporations on the receiver system. To cope with inconveniences arising from unsettled indemnification and reparations, it is advisable to establish new corporations as subsidiary bodies of the old corporations. The old corporation will turn over or lend all of its convertible equipment and production facilities to the new corporation. The old one will continue to exist only for handling matters relative to reparations, indemnities, and so forth. The relationship between the old corporation and the new one is to be similar to that in a receivership. In case the old corporation's equipment is mortgaged, it is impossible under the present legal system to transfer a part of the equipment to any one without the creditors' agreement. This circumstance is expected to cause trouble between the corporation and its creditors. A legal measure entitling the Government to order the corporation to transfer or turn over its equipment to any other place or persons is now being studied by the Ministry of Commerce and Industry.
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