CONTENTS [no#3l Social [no.2] Political [no*ll Economic TWO YEARS OF OCCUPATION SUPREME COMMANDER FOR THE ALLIED POWERS SOCIAL DEPARTMENT OF THE ARMY CIVIL AFFAIRS DIVISION WASHINGTON 25, D. C. T W 0 YEARS 0 F OCCUPATION CIVIL INFORMATION AND EDUCATION EDUCATION First Year of Occupation: Schools of nil levels, most of which had been shut ("'own during the spring of 1945, were reopened and resumed operation* Under SCAP directive of 30 October 194? steps were taken to eliminate militaristic and ultra.nationalistic influences and personnel from the teaching profession. A total of 11?,??8 teachers and administrators resigned prior to the issuance of the implementing Imperial Ordinance No* 263 of 7 May 1946, Other teachers, who had been dismissed by the militarists during the war years on account of their liberal views, were reinstated. Military schools were closed, and military training courses and equipment were re- moved from all schools. Objectionable materials were deleted from textbooks and committees of Japanese educators, aided by SCAP1s educational experts, began the task of writing new texts and new courses-of-study. A Mission,of 27 outstanding American educators visited Japan in March of 1946 and, after an examination of the Japanese educational system-and a series of conferences with SCAP offi- cials and Japanese educational leaders, prepared a comprehensive report for the reorganization of the Japanese educational system. The suggestions of the American Education Mission were imple- mented by*a group of prominent Japanese educators who prepared detailed recommendations for the guidance of the Ministry of Education. On 9, August 1946 thijs group was, established by ordinance on a permanent basis at Cabinet as the’Japan-, ese Educational Keforn Council, ' y « Second Year of Occupation; At present approximately 19j000,000 students are attending some 40,000 schools of all levels. Over a half million teachers' are gradually learning to make the adjustment from the old authoritative methods of * classroom management to the new democratic methods of teach- ing, From April of 1946 to April, of 1947/new editions of text- books, free of objectionable materials, were printed, A nation- wide program for screening all educational personnel by machinery set up- oh ca democratic basis was initiated, in implementation of Imperial Ordinance No; 263 of 7, May 1946.- A total of 2,643 educators were, removed automatically under the features of this Ordinance; 2,268 additional educators have been found un- acceptable by the Japanese screening committeee*. . Based upon the recommendations of the various* advisory ‘ '• bodies, the Ministry of Education prepared and the Diet by al- " most unanimous vote on 25 March 1947 passed a riew Fundamental > Law of Education, a document that is referred to by many Japanese as the ’ nagna charta" of Japanese education, Xt* implements those articles of the new Constitution which have educational implications arid provides a legal basis, for the elimination of , c iscriminations in education and inequality of educational opportunity. It contains provisions for protecting the national schools from political influence and emphasizes that education * is broader than the schoolroom* 1 The School Education Law passed by the Diet by unanimous vote on' 27 March 1947. provides for the extension of compulsory, free education on a .steprby-step basis from six,.to nine years far all.Japanese children. For the present schpol year compulsory education was extended through the seventh year. . It is planned to-make the eighth school year compulsory starting in 1-948, and the ninth year as- soon as practicable pm the standpoint of availability of schoolrooms, -teachers,7, and funds. The. old complicated educational progression ladder was so designed that only a favored few had opportunity to continue, the IT-, education to the university level. This system has been replaced by a new school ladder with six years of elementary education and three years of lower secondary education, followed by three years of upper secondary education and four years of higher education, with provision for graduate study. Under -the new organizational plan.regulations for entrance to the upper secondary and higher educational levels have been broadened and made more’ democratic. •‘New history and geography books have been developed which• for the first,time give Japanese schpol children an honest'and objective story of their country’s development and which are: free of the mythology which characterized texts of the past. An entire new curriculum and courses-of-study, with accompanying textbooks for the first 12 years of schooling,, have been compiled and are being -printed and distributed. 'I.iese are based upon knowledge of the social and mental development of the child and the nature of the community in which he lives. There is stress upon inter- national- relations, the basic freedoms, and the accompanying responsibilities of citizenship. Provision has been made for increased teacher participation in the development of teaching materials. The sweeping changes that have been made ana that are conT tinuing to be made.in Japanese education necessitate a. retraining of. teachers already in service to transform them from.the old role of subject matter drillraasters to leaders of the learning processes of their pupils. The Education Ministry Under SCAP supervision early set to work preparing new teachers’ manuals and teaching guides for.specific subjects, and undertook to reorleht teachers to their new responsibilities. A series of Ministry, sponsored regional and prefectural institutes1 and con- ference’s have been held throughout Japan, at which the new courses- of-study have been introduced and explained. The raising of standards, of teacher training institutions has been initiated. Plans are being developed for sound programs of certification. Professional education associations 'representing various fields of interest have been*organized democratically and are..lending support to. the new educational program. Educational authdrity has ’been ctecehtraiizea to the extent that, although the legal authority has .remained with the Ministry of Education, greater responsibilities have been placed in the hands of the prefecture!-and local educational authorities, with greater freedom to develop programs., end practices to meet local needs. Groups of citizens have been established in local communities throughout ...Japan, tp.ajdyis authorities on critical problems. Preliminary steps have been taken to est- ablish prefectural and local school boards elected by the people, in whose hands the responsibility 2 for administering the schools will be placed. These plans envisage the retention by lav; at the national level of certain ninioun provisions and standards, and the granting of increasing powers at prefectural and local educational levels* RELIGION First Year of' Occupation: SCAP directives were issued 1) calling for removal of restrictions on religious freedom, 2) withdrawing state sponsorship, support, and control from Shinto, and (3) prohibiting militaristic and. ultranationalistlc organizations'from carrying on activities under the guise of . religipjn. . Religious..freedqta:was':established and religious toleration encouraged *‘ Second Year of Occupation: Implementation of the basic SCAP directives continued.Japanese religious life was care- fully scrutinized and militaristic and ultranationalistic doctrines and are in the process of elimination# The enactment of a law and the promulgation of implementing ordinances established the legal basi3 for. to ' shrines and.,temples of title to the State-owned’ land which- they presently occupy and use for religious purposes. Virtually all Shinto shrines and more than half of the Buddhist temples now possess State-owned land which In the aggregate exceeds- 200,000 acres.d - Sponsorship and support by units «or organs of “government of funerals,.memorial services, and other ceremoniesthe war dead, militarists, and ultrahationalists and participation in such, ceremonies by public officials’acting in their official capacities were prohibited by notifications, issued from the Home and Education Ministries.. Also-prohibited was the construction of monuments and statues for the war dead, militarists, and ultra- nationalists. The same ordinances directed, the removal-of : such monuments and statues located in public .schools, along with those patently objectionable monuments and statues located in public buildings and on public grounds. A .notification of the Education Ministry eliminated school-sponsored veneration for 'the Emperor. The influence- of Christianity was greatly strengthened* when Tetsu KATAYAHA and Konakichi IfATSUOKA, both active-- V’. Christians. became Prime Minister and Speaker’ of the House o'tu Representative's respectively. The of *- justice, -tolerance, and understanding which have guided the conduct of the Occupation appear to have contributed materially to the popularizing of Christian principles,. • Although the number, of Christian church members is probably less than^500f000, the number of Christian sympathizers has been estimated at upwards of 2,000,000. Some 1,250 Christian foreign missionaries are pre- sently in Japan, about 25D of whom have entered since the be- ginning of the Occupation* ARTS ItiAP. MONUMENTS First Year of Occupation: Instructions were issued to the Japanese government arid to Occupation forces to insure the protection and. preservation of: cultural sites,' structures, and objects of national and. international importance. Inspections were made to determine the extent of war damage or war. deterior- ation, and reports were completed revealing ho appreciable damage tor the great cultural centers of Kyoto. Nera and Kamakura, 3 but serious or total damage to castles of the Monoyama and. Tokugawa periods (1568-186? A. D.) of which Nagoya castle was the most prominent and famous example, and architectural losses to l?th and l8th'century structures in Tokyo, Yokohama, and Osaka. Second Year of Occupations. Inspections of Registered Sites. National Treasures, and Registered Objects were continued, with attention to private collections. Encouragement was given to the exhibition of private collections and the first major display of privately owned masterpieces of Chinese and Japanese art was held at the Hakutsuru Museum in the Kobe-Osaka area during April 194-7* Exhibition activities at the Nezu Art Museum in Tokyo were renewed, with shows in the fall of 194o and in the spring of 1947. An exhibition of National Treasures of the Imperial Household Museum held in Napa was attended by more than 120.000 people in 21 days. With the promulgation of the New Constitution on 3 Hay 194?,. the Imperial Household Museum was transferred to the people,«and the name changed.to the National Museum. Pending the reconciliation of budgetary and other problems, the transfer was accomplished under an interim plan.that placed the National Museum under the jurisdiction, of the Ministry of Education. Activity in the field of contemporary art has been high, with displays at the Tokyo Municipal Art Gallery taking first place in volume at attendance and variety of exhibition. .The restoration and repair of National Treasures has re- ceived the- serious attention of the Ministry of Education. De- terioration of the famous Seventh Century lacquer figures of Guardian Kings .at' Todai-ji, caused by neglect during the war years, has been repaired, as have panel paintings by artists of the Kano in various temples in Kyoto. The long-range plan of Reconstruction begun before the war at Horyu-ji, near Nr.ra—the most important single monument of Japanese been resumed! the current work being concerned principally with the dismantling and reconstructing of the original Seventh- Century Golden Hall and Pagoda. Special problems involving the preservation of the famous murals are being studied by Japanese scholars and experts. The importance of formulating a plan for the rehabilitation of the area at Itsukushimh damaged by flood and typhoon in 1945 has been stressed. A.new national park, Ise Shina, was designated on 20 December ■- 1946 . INFORMATION Jas SKiriS! it was -emphasized that freedom of the press !^ant rlgh present-news and editorial opinion through, all meaic. ** free from influence, domination, or any form of totalitarian control by any governmental agency, by any Polit^aJ;vpc^^y’th^r uny employees* association, by any labor union, or by any 4 for administering the schools will be placed. These plans envisage the retention by lav/ at the national level of certain minimum provisions and standards, and the granting of' increasing powers at prefectural and local educational levels* MHflE First Year of Occupations SCAP directives were issued 1) •calling for removal of restrictions -on religious freedom, 2) withdrawing state, sponsorship, support., and control from Shinto, and '(3) prohibiting.militaristic and ultranationalistic organizations1 from carrying on activities under the guise'of established and* religious toleration encouraged,' Second Year of Occupation: Implementation of the basic SCAP directives continued, Japanese religious life was care- fully scrutinized and militaristic and ultranationalistic doctrines anr?.: practices are in the process of elimination* The enactment of a law and the promulgation of implementing ordinances established the legal basis for the transfer to shrines and temples Of title to the.State-owned land which they presently occupy'arid use for religious purposes. Virtually all Shinto shrines and more than half of the Buddhist temples now- possess State-owned, land which^in the, aggregate exceedr 300*000* acres.' ' . . Sponsorship and;support.by units or* organs of government of>.funeralsj memorial'services, and,other ceremonies for the wax-dead, militarists, and Ultranationalists and participation in such ceremonies by public officials -acting in their official capacities were prohibited by notifications, issued from the Home and Education Ministries. Also prohibited was the construction of, monuments and statues for the war dead, militarists, and ultra- nationalists. The sane ordinances directed the removal of such monuments and. statues1 located in public, schools, along with those patently objectionable monuments and statues'located in public buildings and on public grounds*a,, A notification of the Education Ministry eliminated school-sponsored veneration fon the Emperor* The influence of Christianity was greatly strengthened when Tetsu KATAYAHA and Kbnakichi MATSUOKA, both active- Christians, became Prime Minister and Speaker of the House of Representatives the Council on Medical Education were placed in effect on i April 1947V The standards are designated * to elevate the profession to a position comparable to that of modern democratic states. Refresher courses for graduate nurses in public health, clinical and midwifery subjects have been given. The model Demon- stration School for Nurses was, granted recognition as a college of nursing by the Ministry of Education. - Standards of nursing similar to those of other modern nations were established by a law passed in the Diet on 3 July 1947. For the first time in the history of Japan nursing educational requirements have reached a high level. Surveys in all 46" prefectures have been completed to estimate the nursing requirements and the existing facilities for training. Educational requirements for entry to schools of dentistry were lengthened three years when the Council on Dental Education adopted the 6-3-3-2-4 program. Continuing nutrition surveys at three-month intervals on the group selected for the- 1947 program indicate that food imports are still necessary to supplement indigenous food production* This is particularly true in the summer months- when food stocks are at a low. ebb. 12 Eighteen million school .children will eventually benefit through the deTelopment of a school lunch program that cane through the recognition of the need for more food for that part of the nation still in the formative years. The program is slowly expanding as more food stocks become available. At present 4,000 city schools and 4,500 village schools, with a total of some 5,500,000 children are receiving benefits. Licensed Agencies for Relief in Asia (LARA) has assisted with contributions to this program. A new Children1s Bureau was formed in the Ministry of Welfare in 2uly of 194? and functions excellently as an aid in the development of special programs in the field of child care aid. Administered by approximately 150,000 Japanese social workers, the Daily Life Security Law has effectively furnished assistance to the needy and the handicapped* The majority of the 5,569,288 individuals repatriated to Japan have received help from the government in the rebuilding of their lives. Colleges ana universities have recognized the need for trainee social workers and many of them have added courses in social welfare work to their curricula-. Reorganization of the Japanese social and welfare insurance systems with a view to consolidation of the various systems into a standard unified program is under study. The Japanese Red Cross continues its reorganization at a satisfactory pace. The program now includes health and welfare services, hospitals*, clinics and dispensaries, training of nurses, public health education, disaster preparedness and relief, voluntary ?e?vices* bid, inquiry and message service and the Junior Red Cross. ,, National Disaster Plan has been approved for submission to the Diet. This provides for a National Disaster Board, of Cabinet level, which will be responsible for making available to the Japanese people such items as supplies, medical care, food, cloth- ing, housing and other services. There will also be a National Disaster Operating Committee which will function in time of disaster Each prefecture will have a Prefeotural Planning Board and Operat- ing Committee which will be composed of the foilowing sections; police, fire, health, welfare, economics, and engineering. This law will also provide for recognition of the Japanese Red Gross as a quasi-governmental agency to act as sole coordinator of all volunteer agencies‘in time of disaster. . complete reorganization of the Vital Statistics reporting system^has been completed and it is now ready and able to function accurately and smoothly. 13 TWO YEARS OF OCCUPATION SUPREME COMMANDER FOR THE ALLIED POWERS POLITICAL PUBLIC INFORMATION OFFICE, GHQ AUGUST 1947 TWO YEARS 0 F OCCUPATION GOVERNMENT SECTION The Government Section, GHQ, SCAP, was established 2 October 194p to advise the Supreme Commander for the Allied Powers oh policies relating to the establishment of a peaceful democratic government in Japan. The Section was assigned responsibility for advising the Supreme Commander concerning relationships of the. Japanese Govern- ment tb,military to subordinate governmental agencies, to the people, and to business (including its relationships, to financial regulations, to subsidies, and to other devices for the control and manipulation of industry). It was also assigned res- ponsibilities concerning the demilitarization of the government in all its agencies and sub-divisions, the decentralization of govern elimination of feudal and totalitarian practices and the elimination of those relationships between government and business which tended to continue the Japanese war potential and t6 hamper the achievement of the objectives of the occupation. ■ In June, 1947, the-reform of the Japanese bureaucracy, in- cluding the establishment of a civil, service system based on merit was assigned as an additional function of the Section. Despite the extensive labor involved in the. complete re-organ- ization of the nation’s governmental, political and economic structure, sweeping reforms h»ve been put into execution. Japan, which, until two years ago, was a feudal police state, dominated by an oligarchy of militarists, bureaucrats' and big businessmen controlling''more than 80 percent of the national com- merce, industry and finance, has been transformed into a modern nation with a-Constitution guaranteeing economic, social, political and cultural freedom. The masses of the people, docile by training and terror- ized by fear, were without a voice In the determination of their own affairs. Today they are assured freedom, self-expression and democracy. A totalitarian economy, wherein the nation’s vast industrial combines, concentrating within themselves virtually all economic power dictated their policy to the Government, h*s been shattered. An infamous secret police system has been crushed. Feudalistic governmental structures have been modernized. Civil liberties have been guaranteed. Old laws forbidding freedom of speech, press, organization, religion, study and re- search, have been replaced by new guarantees of liberties. Thousands of political prisoners have been released from prison and have been restored their proper political and civil rights. All.vestiges of militarism h»ve been destroyed through, aboli- tion of the War ahd' Navy Ministries, the'Ministry of Munitions, the Great East Asia Ministry and other governmental agencies. The major reform measures taken in Japan under SCAP super- vision may be summarized as follows: 1. The transfer of sovereignty from the Emperor to the people and the guarantee to the latter of a bill of rights derived from the experience and enlightened thought of the Western democracies? 1 2, Drafting the adoption of a new democratic Constitution vesting sovereignty in the people and guaranteeing civil xioerDie s; 3. -The elevation of the Legislature, as the body directly representing the people, to the position of supreme organ of state power; 4. Decentralizetipn of government and the democratization or local governments working through leaders elected by and res- ponsible to the people of their localities; 5* , reform of the traditional family system to conform to enlightened principles of human relationships and the confer- ment of political, social and economic equality upon the women of Japan; 6. The removal from important positions in the political and economic life of Japan of leaders who formulated the policies of conquest, ultra-n°tionalism and aggression; . ?•, eradication of a u least 130 ultra-nationalistic and militaristic organizations, including infamous secret and terror- istic societies and their responsible leaders who have been barre from farther interference in Japanfs political, cultural, or economic activities* ?ke elimination of State Shintoism as an instrument for instilling Emperor worship and for enslaving the minds of the Japanese people; 9. ihe revision of the educational system to replace regi- mentation of the mind with academic freedom, the teaching of myth and legend with historical truth; 10, The breaking up of a system of land ownership and tenancy rooted in feudalism to permit ownership by the farmers of the land they long have tilled, thus creating throughout Japan a new class of small land owners; IX. The breaking up of the system of private monopolies under which, with government protection, a dozen families have controlled over eighty per cent of Japan*s commerce, industry and finance, in order that under a system of truly free enterprise, widely owned, the economy may be oriented- solely toward peaceful ends; ... Seeing of labor from the prohibitions under which it could not organize to fight for decent living wages and for years was exploited under conditions beside which our sweatshops at the turn of the century were models of advanced liberalism* All of these reforms have been initiated through the instru- mentality of the existing governmental and ecohomlc machinery. Thepe has been no suspension, disruption, no discontinuity of functioning,of these organs, no collapse, no dislocation, no disorder. The fears of chaos and confusion, voiced by those persons who viewed with alarm any move to disturb the status quo, have not materialized. Cabinet decision to dissolve the once-powerful Ministry of Home Affa.irs, long the core of centralized bureaucratic authority marks an important step in the democratization of Japan, Among civil pgencies, the Home Minister, because of his complete con- trol over the daily life of the people, had been popularly ranked in power and prestige,*as second only to the Prime Minister. 2 A vitally important step, perhaps in some respects the most important governmental achievement during the Occupation, was the drafting, debating, passage and implementation of a new, democrat! Constitution, Under the leadership of the Supreme Commander, negotiations were undertaken with Japanese Governmental agencies which resulted in the preparation of a new fundamental Constitution. Both within the Diet, in the press and public forums as well as in innumerable general.conversations, the provisions of this document were debated long and earnestly, ' After extensive nation- wide discussions, certain revisions in the basic draft were accept ed and the Constitution was adopted virtually unanimously in both branches of the Diet, The Constitution, promulgated 3 November 1946, became effec- tive 3 May 1947. This new Constitution, now the nation*s fundamental law, con- forms to the most advanced concepts of human relationships and is a realistic blending o,f divergent theories concerning the appli- cation of democratic principles by a large modern state. An historic landmark in the age-old struggle of mankind to be free, it serves as a shining beacon for the people's not only of the Far East but of the world. Japan thereby divorced itself from the past and'assumed the lead in declaring its faith in justice and in tolerance. Widespread popular acceptance by both people and Government, without the Issuance of a single directive by the Supreme Commandc- is itself a fact fraught with the greatest significance for the ultimate re-entry of Japan into the family of nations. In April,1947, the Japanese people, under their new Constitu- tion and through a democratic election procedure, chose 232,863 elected officials on all levels of government. These constituted the entire body of elected officers, including a new Diet, 46 governors, 209 mayors, 1784 town and village chiefs, 8?22 headmen and*new prefecture! and local assemblies. These new officials carry on the work of self-government and self-reformationto the end that .Japan may, some day in the not too distant future, be able to take its place - a dignified and helpful place - in a world community of peaceful democratic-nations. NOTE: See Appendix I for more complete information on the new Japanese Constitution. THE PURGE The purge of all persons who shared the responsibility for Japan*s program of aggression always has been intended to be a preventative, never a punitive measure. Based on internationally approved policies of the Potsdam Declaration, it was conceived and is being administered with the purpose of eliminating continuity of influence or exercise of power by persons whose past careers showed them to be undesirable leaders for a nation dedicated'to democracy and world peace. The purge was initiated in the fields of education and police as early as October,-1945, Its fundamentals were first expressed to the Japanese government in SCAPIN 5?0 of January. 4, 1946, which ordered the removal of all undesirable persons from influential 3 positions in the political, economic, and social life of Japan, In the first year after SC/1 PIN 550 was -issued, 1,067 versons had been barred and removed. An extension of the original,purge directive was issued by the Japanese .government on January 4, 1947 and an additional 1,681 persons had been barred or removed up to July 15, 1947. There had been 183,000 career officers, gendarmes, and intel- ligence agents barred by the 1946 original directive. Another 20*000 persons quickly had resigned their positions to avoid designation as purgees. . Except for the initial Purge Directive issued to the Japanese government January 4, 1946, and certain memorandums issued after post-review of the governments action directing the removal of specific individuals, SOAP has insisted that the Japanese govern- ment itself implement and administer the purge program. All Japanese government actions are subject to SOAP review to insure compliance with the word and spirit of SCAPIN 550. Up to January 4, 1947* 8CAP had reviewed 1,770 cases acted upon by the Japanese government and had disapproved 27 decisions. Between January 4, 1947, and July 19, 1947, the Japanese government screened 563,099 cases, most of them before the general election in April. A total of 1,681 individuals were removed or barred. The small number of persons actually purged indicated that fe risked running for office when they considered it possible that they would be designated as purgoes. .Of the. total number screened during this period SOAP reviewed 16,047 cases, involving persons holding important elective and appointive posts in government, officials in the major economic and financial concerns, and inf--uential persons in the political and social life of Japan. In 47 Instances the action of the Japanese government was disapproved. Further action by SOAP upon post-review of the Japanese governments action has been to direct the reinstatement of 12 individuals unjustly or mistakenly barred or removed. INITIAL PURGE DIRECTIVE * The impact of the initial purge directive, which listed un- desirable Japanese in seven categories, was immediate and profound Nine days after the directive was issued the cabinet, under Kijuro Shldehara, underwent extensive reorganization. Three ministers and six cabinet executives and many other high government official resigned. Another wave of resignations crme on March 10, 1946, when the cabinet interpreted "additional militarists and ultranationalists, a category of the original SCAP directive. The entire political scene was altered by this announcement. Political party leadershi changed, political allegiances shifted, and new.candidates were sought to replace those previously scheduled to run in forthcoming April elections. Of the 3,384 candidates for the Lower House, 252 were barred* Among these 113 were candidates recommended by Prime Minister Tojo in the 1942 elections. Another 268 "recommended candidates" did.not file. By August 4946 the Japanese government announced it had com- pleted the Initial phases of the purge program. A total of 5,520 persons in the Privy Council, the Diet, the Cabinet, Prefectural Governments, higher courts, government controlled companies, and 4 higher educational institutions had been screened, and 814 were barred or removed. In 183,000 career officers of the army and navy, members of the gendarmerie and ''ormer intelligence agents had been categorically barred. EXTENSION OF PURGE Upon confirmation that the initial phases of the purge had been completed, SOAP in August 1946. issued a statement of policy to the Japanese government requiring extension of the purge pro- gram to local government, to the economic field, and*"to the field of public information. On January 4, 1947,’ one year from the issuance of the original directive, the Japanese government promulgated imple- menting ordnances extending the purge to all elective offices in national and local government, and to specified positions in certain companies, associations, and mass communication media. To insure that local government administration would undergo a complete reorganization, incumbent mayors and headmen were pre- vented from running for their old positions if they had held these positions consecutively since September, 194?. These officials, however, were not held from becoming candidates for other government positions. A reorganization of the screening system, setting up local boards, was necessary to funnel upwards of 500,000 cases through screening procedures before the general elections in April. Numbers o(f candidates screened, as reported by the Japanese government, included 3,426 fo* the House of Representatives; 1,406 for the House of Councillors; 451 for prefectural governors; 43 for the mayors of the principal cities; 72,5?0 for headmen of wards, towns, or villages; 21,126 for deputy-mayors, deputy- headmen, and accountants of cities, towns, and villages5-and about 42,252 members of election administrative committees. When successful candidates were re-examined by the Central Screening Committee, 11 members-elect to the House of Representa- tives, and four members-elect to the House of Councillors were removed. The economic phases of the purge began about April 15, 194?, when an estimated 3*200 persons holding policy positions..in about 300 companies required screening. By mid-July 1947, 292 persons had been removed and/or excluded from public service. There followed extensions of the purge in the field of public information media, and to "invisible’1 purgees who resigned to escape designation but manipulated behind the scenes strings of influence. A Board?of Appeal, to review cases where injustices may have been committed, was established in February, 1947, Jo handle the increasing volume of protests as screenings were extended to include more persons. These figures do not, of course, include the tens of thousands of other undesirable readers who are forever barred from public Service but who have held no office since the purge became effective and therefore, have not yet been-designated by name. 5 Nor are nearly 6,000 Thought Control and Special Higher Police, removed by SCAPfs Civil Liberties Directive of October,. 1945 included. Because they are barred only from positions in the Justice, Welfare, and Home Ministries and from police work, their status is somewhat different from that of persons purged under SCAPIN 550 who are barred from all public Service. A similar group, likewise not included in th£ above, is the approximately 5,000 teachers who have 6een removed from the field of education. NOTE: See Appendix II for complete review of the purge of Japanese who shared responsibility for their country1s program of aggression. 1947 ELECTIONS The inalienable right to choose and to dismiss their public officials is one of the most important guarantees afforded Japanese by the new Constitution, In anticipation of the coming into effect of the new Consti- tution, a series of four (and in some instances, five) elections was held during April in which each of the 23?,063 public offices, local and national, legislative ~nd executive, was at stake. Seldom in history have the people of any nation enjoyed the opportunity in such brief span of time and by so peaceful a process as election, to select all of their elective officials. Certainly never before in Japan had such an opportunity been presented. Never, before, indeed, had Japanese voted for their local executives or for the Upper House of their Diet, For the first time in their history, Japanese voted for 46 governors, 209 city mayors, 10,210 town and village heads, and 22 ward chiefs in Tokyo, In the past all these had been selected by methods which made no concession to popular wishes. Governors had previously been appointed by the Home Minister; mayors, town chiefs and village headmen by local assemblies from lists approved by pre- fectural governors, and ward chiefs by the Tokyo governor. The inevitable result had been that local chief executives were in- different to local desires because they owed their primary allegiance to the Home Minister or to the governor. The April 194? elections also represented Japan1s first elections for local assemblies on the basis of universal suffrage and the first election for assemblies in which membership was more than a * purely honorary distinction. Voting hitherto had been based on limited suffrage only, so that assemblies’represented only the conservative element in Japanese life. Membership con- ferred no legislative powers since the assemblies met infrequently and were invariably dominated by local chief executives. These elections, moreover, were the first to be publicly administered. Hitherto, all elections had been supervised in detail by government officials controlled by the Home Ministry, In April 1947, 10,500 local elections administration cora- ilttees were established. Technical changes introduced into the laws prior to election forbade candidates to campaign, in more than one district, abolished the former abuses whereby teachers had required students to cam- paign in their interests; they also increased the number of dis- tricts from 53 to 117 and increased tenfold the fines to be im- posed for violation of election laws. 6 In connection with the vast amount of publicity given to the election campaign by press, serein and radio, special commendation should be made of the Broadcast Corporation of Japan which re- jected a proposed Diet appropriation of eight million yen, offered in payment of time devoted to election broadcasts% on the ground that it was merely fulfilling its public duty* The Broad- casting Company of Japan thus established the principle of direct public responsibility, free from government direction or political influence. SHIMANE SHIMBUN (Matsue) and OKAYAMA GODO SHIMBUN (both 2 May) described the election results as "a corner-stone in Japan1s peace- ful revolution.11 They warned voters, however, that they 11 must exercise vigilance over the performance of the successful candi- dates.” SHINANO MAINICHI (2 May) voiced the same theme by writing "If the people are unconcerned with administration after election, it can be said that they are exercising only half their rights and duties." A most reassuring feature of the elections was that, following the election, the Japanese press contained virtually no reference whatever to evils such as had been prevalent in pre-war election campaigns. None but rare and isolated charges appeared concerning dis- franchisement (accidental or intentional) of voters qualified to cast their ballots, of the inefficiency or incapability of elec- tion officials, of fraud, irregularities, miscounting or ballot box stuffing. A certain amount of vote buying and corruption, although far less than in previous election. , was ,reported, but the total num- ber of incidents^was less and the extent of the crime more res- tricted 'than in previous years. Few, if any, charges were alleged that campaign expenses had violated the official ceilings or that money interests had played any important part in the determination of results. Boss activity, which had been predicted by TOKYO TIMES (12 April) and dishonest practices, which EHIME SHIMBUN and IWATE SHIMBUN (both 24 April) feared might affect the House of Represen- tatives balloting the following day, were not again mentioned in the press following the close of the campaign period. This situation stood in sharp contrast to the experience of former years when accusation of election law violations, especially bribery and corruption, had been common phenomena of the press. A wide variety of pre-election measures was taken to insure democratic elections: strengthening of the election laws, exten- sion of the franchise, increase in the number of polls, applica- tion of the purge, assurance of non-interference by the police, surveillance by Occupation Forces, to name a few. Insofar as counting and tabulation were concerned, not only did every candi- date have the right to have a witness present at every step in the voting and counting process at every polling place and ballot counting station in Japan—but every Japanese citizen had the further right to bring any protest which he might have to the attention of the Occupation Forces as well as his own Government. With respect to the laws, therefore, every step in the elec- toral process, from the filing of 'candidacy and the registration of voters to the final tabulation of results was fully protected by laws and safeguards comparable to those of any democratic nation Insofar as violations of. these laws were concerned, not only were Japanese procedures of investig tion, indictment and trial highly competent and satisfactory but once again full opportunity was afforded all citizens to bring any criticisms of methods to the 7 dictments tirJlkcUon ‘iVtXoks 1*7 elutions “^J;99?.83 opposed to 2,632 in the one election of sn indication that political morality markedly imnroved The figure of 2,997 included all alleged viol-tionffrom all sources• • J? connection, it is imperative to note that the vast majority of claims of election law violations involved such crimes °C voters, house to house canvassing for votes, and vioiations of the poster law. For all the 42,000 polling nieces 200 000 stations in a11 Japen and for ail the ballots which were counted during five elections there wpre only a handful of charges made anywhere—by press, or public or candidates or parties—of improper casting of votes, and no charges were made of miscounting of votes. Improvement of Elections T^CO?sif?ring aver?ge abstention rate of 30 percent for t e 1947 elections, it must be recalled that essentially this rperesents a percentage of all eligible voters and not a percent- age of the total of registered voters. Japanese law provides basically for automatic registration; once each year all eligible in terrd reSardlefs of whether they have any interest in voting or not. In most Western countries, of course, the situ- thp°£ f^£V£rS^; registration is not automatic but requires that tF4.J?kG the illative and register himself. From the stand point of the percentage of all adults actually participating in an th(rreforf> a 7° percent turnout in a Japanese election would be equivalent* of about an 8? percent turnout in an average American election. ” 6 Political Implications to/o T?e £?llowing t?ble summarizes party votes in the 1946 and d eiections. Since the method of voting adop.ted in the House of Representatives election'in 1946 permitted voters to cast ballot for two or three candidates, dependent on the size-of the elector*! district concerned, direct comparison with the Representatives election of 194? is not possible, since this ye*r electors voted for but one candidate each. Table II, however, projects a for comparison, indicating an estimated division of votes in 1946 if electors had then cast ballots for but one candidate. 8 19*+6, 10 April Liberals Democrats Social Democrats Cooperatives Coramuni st Minor Parties Indepenr- dents Total 13.505.7^ 10.350,530 9,858,1+08 1.799.766 2,135.757 6.673.272 11,352.602 5573+87879 The same reduced to common denora. 6,500,one U, 96a,000 U,730#Oco sfi'vrr 1,030,COO 3, ico,'to 5,63",'oo 26,6^0,000 5 -April 2,111,906 1,605,51+0 6,067,059 392,867 258,0U1+ 1,590,637 16.736.586 26,760,667 Governors 20 April, Local 3,822,767 3. U7.202 1+, 8^7.188 1.038,271 309,177 1,026,178 7,235.693 21,896,1+76 20 April, National 1.360,1+56 1,908,087 3.679,811+ 569,916 610,91*8 1.039,819 12,662.073 21,1+11,113 25 April 7.295.21+2 6,857,1+80 7,168,888 1.862.753 1,002,883 1.560,070 1.616.295 27,361.611 30 April, Municipal 1,980,001 2,073,1+91 2,0U9,!+QU ii+S.^3 0 S2,'4C9 652.571 2 7 .1+81,019 y, 638.638 Prefectural 5.733*280 6,092,109 5.682,627 1.187.322 556,673 2,52r ,1+28 5,086,367 31,258.61+6 April 10 2U.1+ I8.7 17.8 3.2 3.8 11.7 20.1+ 1CC.C April 5» Gov, 7.9 6.0 22.6 1.5 o.9 6.0 55.1 ICO,a April 20, Local 17.C 1^.3 22.2 6.5 3.2 5.0 33. S V>0> April 20, Natl, 6.5 7.2 16.6 2.6 2.9 K3 59.3 109.0 April 25 26.6 25.1 26.2 6.8 3.7 5.7 5.9 100#c April 30, Pref, 18.3 19.5 17.5 3.8 1.8 8.1 31.-0 10^.0 April 30, Munic, 6.5 6.8 6.7 0.9 0.8 2.1 76,6 100.0 9 POLITICAL PARTIES I Japanese politics are a tangled maze of personalities, cross- currents, compromises and flexibilities, but the general course is clear. Japan is moving toward democracy and toward the adoption of a Western type of parliamentary government- Elections.have been marked uy the manner in'which electors disregarded party lines to select candidates whom they regarded as personally well-qualified by character and experience. A second noteworthy result has been the repudiation after full, fair and free discussion, of extremists of either reactionary or revolutionary character. Recent Election Results Of 20? candidates in the April 1947 elections for.46 governor ships, voters chose 29 Independents, fiV© Liberals, four Social Democrats, three Democrats and five of various minor parties. In 202 mayoralty elections, 144 Independents, 2? Democrats, 12 Liberals, nine Social Democrats and one Cooperative were elected, together with 11 representatives of minor parties. In 4,247 village headship contests, 3,716 Independents were returned, 159 Liberals, 145 Democrats, 126 Social Democrats, 74 minor parties, 19 Cooperatives and -eight Communists, An estimated -54 percent of the eloctprabe voted Independent, with 24 percent Social Democratic, eight percent Liberal, seven percent for minor parties, five percent Democratic and one percent each for Cooperatives and Communists. House of Representative The Social Democratic party, with 144 seats, won a plurality in the House of Representatives. Next in order the Democrats, 130; Liberals, 129; Cooperatives, 31? various minor parties, 10; Independents, nine; Japan Farmers, eight; and Communists, four’. These figures represent gains of 46 Social Democratic seats over the figures at the close of the last Diet, Minor parties in- cluding the New,Japan Farmers1 party, gained 13 seats while Inde- pendent figures remained unchanged. Gains were made at the ex- pense of the Liberals who now have eleven less seats than in the last Diet, Democrats 15 less, Cooperatives 31 less,and Communists two less. The Farmers1- party, a new organization, drew its strength largely from last year’s Cooperative party. Since 234 votes were required for a Lower House majority, no party could single-handedly control the government. After various, political maneuvers, therefore, agreement was reached whereby the Social Democrats, Democrats and Cooperatives formed a coalition, totalling .305 seats, as a.gainst a maximum of 159 opposition votes. Tetsu Katayama, Social Democrat became Prime Minister May 1947, with Hitoshi Ashida, Democrat, as vice- Prime Minister. The Social Democrats are professedly Socialists. The Demo- crats call themselves stream-lined modernists, but among them are numerous conservatives.. The Cooperatives, largely an agrarian group, differ from Social Democrats in philosophy but work, with them,.for practical governmental purposes. 10 Similarly the opposition is composed of Liberals, who are committed to conservatism, and Communists, as well as various smaller parties of contrasting political opinions. House of Councillors The newly constituted House of Councillors contains a poli- tical group peculiarly its own named the Ryokufu Kai, or Green Breeze Society, so-called because it announced its intention of effecting a spring-like renaissance in Japanese ’affairs. This group enrolls members. These include virtually all former members of the House of Peers who succeeded in being elected as ' Councillors, ex-diplomats and other who felt that the Upper House should preserve a character above the party battle. True political parties in the Councillors include 47'SociaJ Democrats, 43 Liberals, 42 Democrats, 18 Independents and four Communists. If party lines were strictly drawn this might seem to indicate that the Katayama coalition controls only 89 votes out of 2?0 in the House of Councillors, as against a possible opposition bloc of 161 votes. Such, however, is not the e se since the 96 Green Breeze members do not constitute a genuine party.and are neither pro- nor anti-coalition. At least 13 of them were members, at the time of their election, of the Cooperative party, but merged thereafter with others, chiefly Independents and Liberals, to form the non- partisan Green Breeze Society. II All parties profess to democratic government, anti*- bureaucracy, social insurance, stabilization of the people’s live- lihood, better rationing methods, abolition of the black market, entry of Japan into the United Nations, a speedy peace treaty, justice in international relationships, and other popular causes. They differ in the ways suggested to accomplish these results. Social Democratic Fart The Social Democratic party, for instance, contains some members who are popularly classified as left-wingers, as well as so-called right wingers. The Social Democratic party is the contemporary successor to several pre-war farm-labor parties. Some of these were frankly proletarian, and their survivors constitute the Social Democratic left wing. The Social Democratic p*rty has enjoyed the support of the largest group fo politically conscious labor unions. For example, the Speaker of the House of Representatives is a right wing Social Democrat who is also president of the Japan Federation of Labor. Many members of the formerly outcast Eta group are also believed to have supported the Social Democrats; their leader, who is vice- president of the House of Councillors, is also a Social Democratic committeeman. As might be expected from its large labor unionist membership, the Social Democratic party is strongest in the cities. It stands for the creation of a peaceful democratic revolution through peaceful democratic processes, for the progressive national ization of essential key industries, beginning with coal and iron, for the taxation of incomes derived from war profits, and for the suspension of interest on war bonds. 11 c?,VIlb.^C°axiL±on wlT'n more conservative parties precluded aggres- ction °f measures which conservatives termed socialistic, tbe party is at present moving toward introduction of a bill for state control of coal production. tic Party The Democratic party, created in March as the successor of the former. Progressive party, is also divided into two groups — a renovationist faction he-ded by Foreign Minister Hitoshi flshida, Shidehara6 conservative 6rour’ lec' former Prime Minister Kijuro The Ashida section, now in control, includes most of the younger members of the party. ... |bl,s bolds second place in the Diet but in mapy locali- ties it led in elections for mayors, village headmen and assembly- men, J Some observers believe that its nucleus consists of remnants of the pre-war Minseito party—citing Home Minister Kozaemon Kimura and State Minister Tskso Saito as examples—and there is no ooubt but that many old-line politicians of that p*rty are influential local leaders. The Democratic party stands for strict economic supervision iin contrast to Liberal desires for free economy and to Social Democratic ideas of state control). Liberal Party • 4. The Liberal party, strong among businessmen and financial interests, and headed by former Irime Minister Shigeru Yoshida, regards anti-Communism as its strongest platform plank. Because it defends individual enterprise, it argues it l7SUidv.aC<^°mpi4 i53 ends and through evolution rather than by immediate drastic action. The Liberal party was the plurality party in the 1946 Diet f?11 to second P1?ce in snd then to third place among Diet parties. Peoples ' Cooperative Party The Peoples' Cooperative party, founded as an agrarian party based upon Japanese semi-official producing and distributing monopolies, lost most of its original members through the purge. 1 br?adened its b?se Ly merging with a powerful bloc of schoolteachar Diet members headed by State Minister Junzo Sazamon, and with v&rious local parties such as that led by the party s present chief, Communications Minister Takeo Miki. The party stands for the cooperative principle, for the pro- motion of education, and for the stabilization of Japan upon a generally conservative basis. Japan Farmers' Party The Japan Farmers' party regards itself as the true Coopera- tive Party from which it split when the latter voted to admit city members and education members to what had been a purely agrarian group. The Farmers' party strength lies in Hokkaido, formerly a Cooperative stronghold. 12 Other Minor Parties Minor parties and Independents are, in the main, identical. In virtually no instance except that of the Communists, is any national group concerned nor are any firm ideas set forth differ- ing from those of other parties. These groups,some of which may be as evanescent as the 28 Minor Parties which existed when the 194-6 Diet opened but which gradually became absorbed in larger parties, center about the personality of individuals popular in, one locality but entirely unknown elsewhere in Japan. The Communists call themselves the party of the masses but have failed to. win support of more than between one to two per- cent of the voters. The party platform colls for abolition of capitalism and the Imperial System. This attack upon the Emperor was more strongly voiced in 1946 than in J947. * The party is led by Sanzo Nosaka' and Ryuichi Tokuda. Tokuda spent eighteen years in prison prior to his release under the terms of SCAP’s civil liberties directive issued on 4 October 1945* Nosaka is well known for his Propaganda work among Japanese troons captured by Yenan Chinese. LABOR MINISTRY Noteworthy among the specific - steps undertaken by the Japanese nation to secure a complete reformation of its govern- mental structure has been the establishment of a Labor Ministry, The Japanese labor record prior to the surrender had indeed been black, but in the early days of the Occupation, the work- ingman was freed from all the oppressive restrictions. During succeeding months, measure after measure designed to protect him and promote his welfare was enacted into law. No cabinet, how- ever, established any governmental agency with sufficient authority and prestige effectively to represent labor1s interest in govern- ment, although during the January 194? crises, the Yoshida'Cabinet suggested establishing a Labor Ministry. With Labor steadily becoming more articulate and better, organized and with measures such os the Labor Standards Law, the Labor Relations Law and the Unemployment Security Law reaching fruition, it became apparent that the manshift machinery set up in the Welfare Ministry was Inadequate. The Katayama Cabinet, under the leadership of its Minister of Labor designate, Yonekubo, therefore drafted a bill to- establish a strong and effective labor ministry. The movement was Japanese in conception and execution. When the final Cabinet draft was presented to' the Supreme Commander for approval in early July, no alteration or amendment was required and the bill in its original form was laid before the Diet on 22 July 1947. NATIONAL GOVERNMENT Ministry Home Affairs The Ministry of Home Affairs ’(Naimusho) is probably the oldest formal arm of government in Japan, dating back as far as the year AD 649,* Its position was established more definitely in 1868 with the Melji Restoration and became, probably at that time, the most important ministry of government as -created by the Meiji Constitution. It consisted of the four most powerful bureaus in the scheme of government as it affected the domestic affairs of 13 the people. These were; Shrines Bureau Local Affairs Bureau Police Bureau Public Works Bureau It can be truthfully said that the Home Ministry controlled the intimate lives of the Japanese people from the "cradle to the grave," Through its Shrines Bureau it forced the people to conform to ritualistic State Shinto. While this was not a real religion it compulsorily required the people to observe and partake of the various rites and ceremonies which were developed under this cult. This was one of the principle devices by which the people's spirit was held in subjection and through which it was possible to infuse the general populace with ultra- nationalistic and militaristic doctrines. All of the shrines, numbering more than 100,000 came under the jurisdiction of this Ministry. The members of the higher priesthood were State employees and directly under the Home Ministry, thus the spiritual education of the people was com- pletely in the hands of the government. Through its Bureau of Local Affairs the Home Ministry con- trolled to the minutist detail the local government in Japan. The Horae Minister appointed all of the prefectural governors. They were subject to his discipline and could be shifted or removed at his pleasure. The governor, in turn, could refuse to follow actions taken by the prefectural assembly. Any pre- fectural assembly could be dissolved by the Home Minister when- ever he so deisred. The governo:’ also had power to nominate mayors and could remove them. City assemblies could be dissolved by the Ministry of Horae Affairs the same as prefectural assemblies. Thus by his power of life and death over countless thousands of local officials, the Home Minister was virtually an absolute monarch of internal administration in Japan, Another of the principal functions of the Local Affairs Bureau was the administration of elections. This was absolute. At no point in the election procedure or machinery did the citizens of Japan have any representation. The Horae Ministry was in charge of the machinery at the national level and its henchmen, governors and local officials, ran the machinery at the local level. From the earliest days of the parliamentary system elections were notoriously swung by the power which the Home Ministry exercised. During the period, through the 1920*s, when party development reached its highest level, the party in power, through its use of Home Ministry controls, was always able to swing the elections as it saw Tit. In the later years, preceding and during the war, the most vicious regimentation of the people came through the police force of Japan, which was also under the Horae Ministry. By both legal and extra-legal methods the police eliminated dissident elements, frequently throwing people in jail who were considered trouble- some and keeping them there for years without lodging specific charges. The police department exercised many functions which are not normally associated with police administration in the western world. These cover such a wide.range of subjects as recording births and deaths, exercising many functions in connection with economic affairs, keeping track of movements of people, censorship of books, magazines, newspapers, etc. 14 In elections, previously discussed, the police were used to harass, intimidate, and often to eliminate troublesome opposi- tion candidates or groups. The neighborhood associations, which r©present an oriental institution dating back some centuries, were highly developed during the war. Through these associations the most Intimate check was kept on every individual person in Japan. Operating the rationing system, it exercised tremendous power over every family* This institution was a?so directly under the Ministry of Hom6 Affairs. The Public Works Bureau, as its name implies, was in charge of such matters as harbors, roads,.rivers, flood control, etc. By virtue of its veritable size, the Horae Ministry was in a position to exercise great power in its administration of this Bureau. This Ministry also had under it many of the public instit- utions in Janan, such as Homes, Asylums, Houses of Correction, etc.. The surrender of Japan and successive directives from SCAP had stripped the Home Ministry of many of its principal functions and responsibilities. The two most important of those remaining early this year were local affairs and the police. The respon- sibility v/ith respect to the former was substantially eliminated by the granting of local autonomy by Diet action to the pre- fectural city, town and village governments. Decentralization of the police force which was obviously close at hand would re- duce the Home Ministry’s responsibility in regard to that,. fun- ction. Thus it was clear that, this Ministry, which was ortce the most powerful in the Japanese government with thes exception of the War,and Navy Ministries, was now merely a hollow shell of its former self. The Japanese government accordingly presented a plan for the reorganization of the Home Ministry , taking into a ccount the changed conditions. This Ministry had within it the most hardened core of the professional bureaucracy and it was plain that this bureaucracy was resisting a thorough reorganization. Inevitably, as the days went by, it became apparent that the Ministry could and should be abolished. Draft legislation to accomplish this has been prepared by the government, and will be submitted to this session'of the Diet for its consideration. Thus will come to an end an institution which has for centuries been an instrument of oppression for the Japanese people. It was a most powerful ally of the militarists in conditioning the nation to face almost unbelievable privations in making pre- parations for war and during the war itself. LOCAL GOVERNMENT During the first year of the occupation the Local Govern- ment Division was concerned with the reorganization of the organic laws which have established the structure for government in the local echelons: the Law Concerning the Organization of Towns and Villages, the Law Concerning the Organization of Cities, the Law Concerning the Organization of Urban and Rural Prefectures and the Law Concerning the Metropolis of Tokyo-to. The program was divided into two phases of work, one dealing with the central government and the other with the local governments. The first phase entailed extensive examination and study of fundamental laws, Imperial ordinances and ministerial orders under which the ministries of the central government exercised authority and control over the echelons of local government. 15 Administrative procedures were .ilso analyzea intensively. Although all the ministries of the central government were studied, special attention was devoted to the Ministry of Home Affairs because of its jurisdiction and direct authority over all local governments. The second phase was wholly one of field inves- tigation, first to obtain knowledge and benefits from the exper- ience of military government companies, and second to test and observe the results of the findings produced in *the first phase. These field investigations covered numerous military government companies and other units, as well as, of course, many villages, towns, cities and prefectures in which Japanese officials and other citizens were contacted. The purpose of conducting so widely a detailed examination and analysis was to secure an unquestionable foundation of facts on laws and administrative practices and procedures on which could be built more simplified and useful structures for local govern- ments and from'which could be devised a democratic, integrated system for the whole framwork of government in Japan. The revisions represented great progress in the democrati- zation of the government even for the Japanese countryside in which the old feudalistic elements more strongly than elsewhere. The revisions introduced (1) the principle of direct elections by universal suffrage in all three echelons of local government, (2) the concept that local assemblies in Japan can be effective controlling bodies, (3) a new agency in the system of conducting local -elections to make -manipulations more difficult, and (4) the practice of recall and initiative thus giving the people themselves some certainty of control on all their elected officials and representatives. The completion of the four‘laws was achievedat the end of the first year of the occupation although final enactment by the Diet and promulgation were not accomplished until the beginning of the second year. During the second year of the occupation continued work and further revisions of the four laws given above, produced a bill entitled, nThe Law Concerning Local Autonomy" and was promulgated as Law No. 67 on 16 April 1947. This Law- is a codification of the four laws and the revised Imperial Ordinance No. 147 which provides the prefectural governments with their more important departments and offices and the governors with powers over the personnel to staff them. The new law still within the confines of the Meiji'Constitu- tion contains many added liberalizations. It eliminates the dominant power of the Ministry of Home Affairs. Under the old laws local decisions could not be made on a host of local because of hampering restrictions in a chain of permissions having to be sought from higher authorities. In the law local assemblies are given the right and power to debate the budget completely, even to altering the total sum of it. With the introduction of the procedure of having standing committees for particular or combined functions of government, the assemblies have been pro- v vided with agencies for obtaining better and continuing infer-, mation to utilize in their legislation. This new procedure, toget- her with more, frequency of assembly meetings, lessened the need for a council. Previously the council functioned when the Assembly was not in session. Vice-governorships were also established. For the first time the right of self-government was given to the inhabitants of the outlying islands. Moreover, a system for the creation of'special cities was introduced under which a large municipality "could obtain the status of a prefecture. . 4 16 During the year another major alteration was made by dissolving and eliminating the system of Tonari Gumi. In its compulsory form in which all people were forced to be members, this system was introduced in 1940 to regiment citizens for war. It placed between the citizen and the municipality three organs of control to watch and direct their activities. Approximately ten families were united into a neighborhood association or Tonari Gumi with a chief at its head; about one hundred of these formed a block association or Chonaikai in the cities and towns or a Burakukai in the villages. In some cases the Burakukal and Chonaikai formed federations or Rengokai. All these organizations had their own chiefs, in theory elected, in practice appointed* In view of the small number of members in each Tonari Gumi, the life of every individual under a constant surveillance. The eradication of this evil system was a sine qua non for the healthy development of democracy in Japan. Its existence had been defended because (1) the administration could easily issue orders to citizens, and (2) the distribution of rations was facilitated. Not only was the abolition of the Tonari Gumi needed but also a radical change in the system of rationing and re-establishment in Japan of a free consumers1 movement. The present efforts of the Local Government Division are directed toward (1) the prevention of further establishment of the central organs in the prefectures, independent of the prefect- ural government; (2) the study the relationship between the central ministries and the local bodies to determine (a) which functions of sound government may be most properly performed by the local body without any interference on the part of the cen- tral government; (b) which functions may be most effectively per- formed by the central government with its own representatives in the givejn area; Cc) which functions should be performed by the local governments under the supervision of the central government. The actual work here involves the legal and functional rela- tionships between the central government and all local bodies, particularly prefectures, in the fields of finance, commerce and industry, education, labor, public health and welfare, agricul- ture, forestry and transportation. LAW NO. 67 Law No. 67, the Law Concerning Local Autonomy, was promulgated 16 April 1947. This law codifies former laws dealing with the organization and structure of (1) towns and villages, (2) cities, (3) prefectures, (4) Tokyo. I. Chief Executives; 1. Today they are elected directly by the populace for a four year terra. They may be re-elected. This term of office is provisional because the officers can be re- moved through (a) vote of non-confidence of assemblies, (b) recall procedure by voters through petition, and (c) impeachment of governors only for non-performance of national duties.* Formerly the governors, as high ranking bureaucrats, were appointed by the Home Affairs and served appointments of short duration with the avowed purpose of serving primarily the central.government rather than the local. Mayors took office through indirect election by the assemblies; they were elected renewable terms of fo.ur years. Today the executives are now responsible to the electorate and must answer at the polls for their actions. 17 XII gfcJlItJl'ax ai'ti XU duiuxius ui d i xunuv/C auu personnel. Each is responsible for the administration within his area of jurisdiction; each has final control of personnel although the a ctual work is performed by a deputy through an organized division of the adminis- trative offices; each initiates a budget bill and is responsible for its execution. Under the old laws these powers were held completely by the executive. Today, they share this authority with the legislatures. The budget may be altered in the legislative assembly whereas before, the budget was the prerogative of the executive. II, Tne Assemblies: 1, Today as before the assemblemen are elected directly by populace for a four-year term. The term also is provisional as, after a vote of non-confidence, the assembly can be dissolved. Assemblymen today can be recalled by popular vote. This could not have been done previously. 2, Powers of the assembly have been greatly increased. Today they exercise real legislative powers. Formerly their position was almost entirely advisory. (a) Today the assembly can override the executive's veto. Formerly this required action by the governor and the Minister of Home Affairs, Moreover the Minister of Home Affairs held the threat of dissolution over the assemblies. This power has now been taken from him. (b) Today the assemblies may alter the budgets. Under the old laws, assemblies could lower the total amount but could not raise it. (c) Ratification and confirmations! powers are greater in that more nominees* names must be -submitted for appointment. III. Other Changes: 1. Election Administration Committees now supervise and con trol elections and political campaigns. These bodies are independent and are responsible to the public. 2. Recall procedure the public a check on executive and legislative agencies. 3, Initiative procedure allows the public to bring a matter or bill directly for legislative consideration. 4, The Tonari Gumi system established as an integral part of Japan's total war effort, has been abolished. The individual can now go with his or her problems direct to ward, village, town or city offices instead of being forced to belong to a system of organizations which intervened between the people and their govern- ment. With the abolishment of the-Tonari Gumi, Chonaikai and Rengokai, a three layer network of compulsory organ- izations has been removed. 18 Under the Tonari Gumi system, as amplified during the war, no Japanese could receive food c • other necessities if he failed to cooperate with all orders of his superiors. The system drilled and disciplined Japan for war, indoctrinated every individual with nationalistic and militarist theory, and spied upon those deemed likely to hold liberal or democratic ideas. This system was wiped out by Japanese Government orders de- manding the absolute cessation of all Tonari Gumi activities by 31 March 1947. New regulations provided for a more democratic method of food distribution and for the assumption by local authorities of all governmental or quasi-governmental responsibilities formerly administered through Tonari Gumi channels. - Until the close supervision over their freedom had--been re- moved, and until Japanese could be assured opportunity for individual development, free from fear of espionage, from maliciou* interference by envious or suspicious neighbors seeking to curry favor with the authorities,* and frofn the crushing weight of bureau- cratic intervention in even the minor details of their daily life, Japanese had no real opportunity to be free. Abolition of the Tonari Gumi and the assumption of true per- sonal liberty affords Japanese society its first real opportunity in history to win and to enjoy the blessing of liberty. courts ;nd law The chief accomplishments in the' field of law during the first two years of the Occupation have resulted from the promulgation of a democratic Constitution, the establishment of an Independent judiciary, and a sweeping reform of the Japanese legal system. Because all laws, ordinances, et cetera contrary to the pro- visions of the Constitution were to become invalid with its err- forcement, it was necessary both to enact completely new legisla- tion to implement the provisions of the Constitution and to revise the existing judicial and legal system to conform to the principles of the new Constitution. In the beginning of the Occupation ECAP was primarily con- cerned with the main problem of demilitarization rather than with Japan’s judicial organization and law. However, the Japanese Gov- ernment, under the direction of the Occupation authorities, did abolish the most conspicuous legal restrictions on civil liberties and did. abrogate a number of laws which did not conform to the democratic principles and policies of the Occupation. Most of these were concerned with the -al of measures which had been used to suppress opposition to the war lords and the imperialists. During the preparation of the draft of the proposed Constitu- tion two Committees, the Provisional Legislative Investigating Com- mittee of the Cabinet and a similar group from the Ministry of Justice revised the codes and statutes to implement the provisions of this proposed Constitution. The Committees also introduced re- forms in spheres.of law not immediately affected by the Constitution When the preparation of this supplementary legislation was concluded, the two committees recommended preliminary and tentative outlines of nineteen bills to the Cabinet. These bills covered a variety of subjects including: a. Bills relating to the new position of the Imperial family: (1) The Revised Imperial Household. Bill (2) Imperial Household Economy Bill 19 b» Bills of an organizational character: (1) Cabinet Bill (2) Diet Bill (3) House of Councillors ©lection Bill (4) Administrative Offices Bill (5) Finance Bill* (6) Civil Service Bill c. Bills relating to civil liberties: (1) Revision of the Petitions Law (2) Revision of the Ci' i Code (3) Revision of the Criminal Code (4) Revision of the Code of Criminal Procedure (5) Revision of Law for Criminal Procedure Compensation d. Bills relating specifically to the judicial administration (1) Court Organization Bill. (2) People1s Investigation of Judges Bill (3) Impeachment of Judges Bill (4) Administrative Litigation Bill (5) Public Procurators Office Bill Coincidental with the promulgation of the new Constitution on 3 November 1946 a far-reaching amnesty was granted. It consisted of general amnesty covering political offenses, such as lese majest and most military offenses, of sracial amnesty to be granted indi- vidually of commutation of and of rehabilitation. The 91st extraordinary session of the Diet. 26 November 1946, to 26 December 1946, adopted four major bills whose provisions im- plemented the provisions of the Constitution. a. The Cabinet Law provided for the machinery and proce- dure by which the Cabinet and the Ministers of State are to operate b. The House of Councillors Law provided for the election of members of the first Chamber, qualifications for election of candidates, et cetera. c. The Imperial House Law related to all matters concern- ing succession to the throne, status of members of the Imperial Family, membership in the Imperial Family, the regency, ceremonial functions, and the establishment of the Imperial House Council. d. The Imperial House Economy Law implemented Article 88 of the Constitution dealing with property of the Imperial Household as belonging to the State and with the appropriation of expenses for Imperial Household in the budget. Legislative Enactments Concerning Judicial Administration and the Basic Codes. The new Constitution of Japan has not only brought about a sweeping transformation in the organization and functions of the Judiciary,/ it has, in addition, established’principles which affect the basic Japanese law such as Civil and Penal Codes of Civil and Criminal Procedure in an almost revolutionary way. Fundamental human rights have been guaranteed and safeguards are especially elaborate for the protection of the individual in the field of criminal justice. All these constitutional innovations'have re- quired implenentary legislation. Japan finds itself, therefore, in the middle of a comprehensive and fundamental reform of the whole body of law. The first phase of this reform was concerned with the organ- isational aspect of the administration of justice. In its 92nd Session, the Diet enacted a new Court Organization Law and a Public Procurators1 Office Law. a. Court Organization Law. The basic principles behind this law are the complete inde»pendence of the judiciary from Hip particularly the Ministry of Justice and, in conn.ction with this, the strengthen- ing of the pfestige and power of the Supreme Court to which the judicial administration is entrusted , The two new prerogatives of the highest tribunal, judicial review over legislation and rule-making power aye vested in the Supreme Court and the inferior courts, namely high courts, di.suriot courts and summary courts. Consequently the Court Organization Law provides that all legal disputes shall be decided by these courts. This brings about, among others, the abolition of the Court of Administrative Liti- gation, However, the monopoly of the courts of law on legal disputes will in no way prevent the establishment of a jury system or preliminary fact finding by administrative agencies. The Supreme Court will, as a rule, be restricted in both civil and criminal affairs to a review of issues of law. The High Courts take the place of the former appellate courts. The District Courts take over most of the functions of the former Local Courts which are a", dished. The Summary Courts, as the lowest strata, may be compared with the institution of Justice of Peace in Anglo-Saxon countries. In civil suits they are limited to less significant claims and in criminal affairs they try petty offenses, thus also taking over the functions of the former Police Courts, which cease to exist. The Supreme Court will consist of one Chief Justice appointed by the Emperor on designation of the Cabinet, and of fourteen associate Judges appointed by the Cabinet, Ten of the judges must be on the basis of strict professional requirements such as long experience as lawyer, or professor of legal science, while the remaining* five are not subject to such limitation in order to open the way for the appointment of personalities with a background different from that of the normal expert in jurisprudence. In order to facilitate the choice of suitable personailities to the high position of a judge of the Supreme Court, it is provided that the Cabinet con- sult an Advisory Committee before making the designation of the Chief Justice and the appointment of the other judges. This Com- mittee determines on the candidates to be proposed to the Cabinet. It had been considered necessary to postpone the appointments to the Supreme Court until a Cabinet was formed after the enforcement of the new Constitution. It may be noted that all appointed judges of the Supreme Court are subject to recall by popular referendum. The status of all judges has been fundamentally changed. Formerly they were regarded as civil, servants and were classified and remunerated like admin- istrative officials. Appointments and promotions were determined by the Ministry of Justice, Now their appointment is entrusted to the Cabinet, which, however, in its selection is limited to the proposals of the Supreme Court. 21 The -law repeats the constitutional guarantee that no judge shall, against his will, be dismissed or be removed to any other position, or be suspended from exercising his judicial function, or have his salary reduced, except by Impeachment or in the case of-the judges of the Supreme Court by popular referendum, or unless he is declared mentally or physically incompetent to perform his official duties. However, a retirement age has been fixed at 70 years for judges of the Supreme Court and at 65 years for judges of the inferior courts. It is noteworthy that the Supreme Court now has power of appointment and removal over the bulk of all those court officials who are not judges. Such secretaries, research assistants, teachers at a Judicial Research and Training Institute, clerks and sheriffs were formerly under the juris- diction of the Ministry of Justice. Another important shift of jurisdiction from the Ministry to the Supreme Court has been made with regard to matters concerning the study and examination of judicial apprentices. These matters will in the future be subject to the rule-making power of the Supreme Court. b. Public Procuratorys Office Law. This lav/ is essentially a reenactment of those provisions of the former Court Organization Law which related to procurators their powers--and their relationships. The need for a separate law dealing with these subjects followed from the complete separation of courts and administrative agencies required by the Constitution. In the past the close connection between judges and public procurators who both were under the super- vision of the Ministry of Justice had unfavorably affected the personal independence of the Judiciary, The procurators organizationj as before, is nationwide and is made up of separate offices which correspond to the new type of courts—the Supreme Procurators1 Office to the Supreme Court; High Procurators1 Offices to the High Courts; District Procurators1 Offices to the District Court; and Local Procurators1 Offices to the Summary Courts, 22 Procurators are appointee" administrative officials and are responsible to the national government through the Ministry of Justice. However, the Procurator General as Chief of the Supreme Procurators1 Office enjoys a limited functional independence. A number of supplementary laws connected with the organizatio of courts and procurators1 offices was enacted by the last Diet, i These laws were concerned with, enforcement with the establishment of inferior courts and their jurisdiction; with the total number of court officials; and with temporary provisions con earning the compensation of judges and public procurators. The Constitution provides that no law contrary to its prin<- ciples shall have legal fofee after 3 May 194?, the date of en- forcement of the Constitution. The Japanese Government, aware of the danger of a hasty legisla^-'. n under pressure of time resorted to the expedient of submitting to the last Diet provisional bills which contain only the most elementary revisions of the basic Code These provisional revisions were enacted by the Diet in the fields of civil law and procedural law. They will be replaced Joy laws to be passed by the present Diet which will incorporate the final and full revision of the whole, body of law. Their temporary character is made clear by the provision that they will become automatically invalid at the' end of this year. a. Provisional Revision of the Civil Code. The Law emphasizes as its guiding principle individual dignit and the essential" equality of r :es, as provided in the new Consti tution. All restrictions on the legal capacity of women as wives and mothers are abolished, A wife will, in. the future, be free to dispose of her property. With regard to grounds of divorce, hus- gand and wife are now treated equally. While hitherto parental power was primarily in the hands of the father, now it is exercise' jointly by the father and mother. The most sweeping change ijq the family law of Japan has been brought about by the abolition of the centuries-old semi-feudal instition of the "head of the house". According to this old syste? not the family consisting of father, mother, and children, but the Chouse"—a kind of clan group—was the basic family unit. The Head of the House, usually the oldest male-of the group, exercised considerable legal and economic powers over the other members of the house regardless of whether he lived with them or not. He owned most of the family property, and succession into property war thus tied up with the succession into the headship of the house. As a logical consequence of the abolition of the institution, the new law provides that the principles governing succession to the property which is not house property shall be applied to all property. Furthermore the inheritance right of the spouse (husband or wife), not existing in the Ci"Til Code with regard to such suc- cession- into personal property has been established. b. Provisional Revision of the Code of Criminal Procedure, The fundamental change in the criminological attitude necessi- tated by the new constitutional safeguards for the individual's lij and liberty must bring about a thorough-going reform of the criminr procedure which in the past left too much latitude to arbitrary 23 intenerence oy T;ne s taue anu one puxxv.c xn vi*w of privacy. The provisional law restrictes itself to the necessar; implementations of the Constitution and to revisions mainly re- quired as a consequence of the enforcement of the neto Court Organ- ization Law. The most important reforms are those designed to carry out the principles of the Constitution with regard to arrest and deten- tion. The law provides that no public procurator or Judicial police officer shall have the power to issue a warrant of arrest or detention. Only a judge may issue such warrant. As: a rule, a warrant of arrest must be procured before apprehending a suspect on reasonable ground of suspicion. The need for a practical dj vice to facilitate the prompt apprehension of a criminal motivated, however, the legislators to make two exceptions from the rule that the judicial warrant must precede the arrest; one is the case in which there are sufficient grounds to suspect the commission of a serious felony if, in addi- tion, because of great urgency a warrant of arrest could not be obtained beforehand from a Judge. In such a case a public procure tor or a judicial police official may apprehend the suspect, but must immediately request a warrant of arrest from a judge, and if such warrant is not issued must release the suspept at once. The second exception is the case of an individual actually engaged in committing a crime. For example, when a pickpocket is caught stea ing a purse, the individual citizen or police officer could not possibly obtain a warrant of arrost before seizing the thief. In all cases of arrest the warrant of detention must be re- quested from a judge by the public procurator without delay, and in any event within seventy-two hours from the time of physical apprehension of the_ individual. That is an important innovation because as the law was heretofore, this period only started to run from the time the apprehended person was brought to the police station. This device made it possible for a police official to delay the delivery of the apprehended person by holding him in con- finement at a place other than the police prison and thus to pre- vent arbitrarily the speedy operation of justice. Now this has be< made impossible since this 72 hour period starts from the moment or the physical apprehension. Only a judge may, upon proper showing of fapts, later rule the unavoidable circumstances, such as weathej conditions and poor communications, justified a delay. If the warrant of detention is not iar** :d by the judge on request within the mentioned period, the apprehended person must be released immediately. Another equally important safeguard which guarantees a speedy trial is the provision that the public procurator must bring public action as promptly as possible tinder the circumstances. If no public action has been commenced within ten days after a warrant of detention was requested by the public procurator, the suspect must be released. This is mandatory and binding upon the procuratc as well as upon the Court. Consequently, all time limitations sur- rounding arrest and detention of a suspected criminal are tied irrevocably to the moment of his actual physical apprehension. Thirteen days after this moment, public action must have been broug or he must be released. Following the principal established in Article 37 of the Con** stitution, the court must provide counsel for a proverty-strlcken accused. Heretofore, the court had to appoint counsel only if the crime involved was felony or in certain other special cases Invol- ving incompetents and minors, and then only upon the advice of the public procurator. To guard an accused further against arbitrary action it has been provided that preliminary examinations which all too often tool 24 tjle character of f.f the Japanese Gove rnnent tms disapproved* Further action by SOAP upon j3Q«t*revlerf of the Japanese Governments action has been io direct the reinstatement of 12 individuals unjustly o~* mistakenly barred err removed* Statirtice on persons affected hy tiie Fro.aren- as of nid'-July .Toduce to the -folio./1U* approximate, totals: 11 Barred and removed -*Init ihl phase f4 Jan 1946 4 Jan 1947).........s♦*,.., 1,067 2* Barred arid removed im'erthePvtension. (4 Jah 1947 - I? Ju|y 1947)..• -4....v 1,S?1 • r. ■ ' ■•* ' ,* v<1 ■ * * 3. Career officers, "cndartc.es and Intel* licence afputs barred*by original difect 1 ve*4':'fi • ** * • • •«••«**•****•• 183,000 4, Persons Thp resignedtheir positions in order to evbld designation,, f ,. *.* t. •.• 20,000 ■* Fheseifigures do libt, of course, include the tens of thousands of other undesirable loaders ?ho are forever barred from ihiblic Service but hrho have held no office since the purge became 'effective and therefore have not yet been designated by name# ITor are nearly 6000 J|vrU!ght Control and Special Higher; Police reoov.ed by $GAP’s Civil Liberties firoctivc o" October,’ 194? Included# Because they ard barred only from positions In the Justice! Welfare, and Home Ministries and. from police rrork, their status! Isieore’/iat different from that of persons purged under SCAPUT 5?0 arc barred fro®hr 11 .Public Service. A similar group* likevise not Included In the above, is the app- roximately* 5000 teachers r/hio Havo boon removed from the rield of education.. 43 TWO YEARS 0 F OCCUPATION INTERNATIONAL PROSECUTION SECTION Oil December 8, 194?, the International Prosecution Section was established as a staff section of SCAP and charged with the duty of investigating and bringing to trial those persons who could be charged as having committed crimes against peace; that is, planning, preparing, initiating or waging of aggressive war contrary to. international law or treaties, agreements and as- surances, or participating in a conspiracy to perform any of such acts. The first task of the section in its first year of work was to determine the persons who were to be charged as responsible for the bringing about of the aggressive wars which Japan had waged since 1931 and to determine the charges against them. To accomplish this task, a large number of persons including the proposed accused were interrogated at length and thousands of documents, some of which had been newly discovered in the archives of the Japanese government, were scanned for evidentiary material. The first indictment charging twentv-eight persons as responsible for the activities of Japan in waging aggressive warfare was filed with the International Military Tribunal for the Far East on April 29, 1946. On May 3, the Tribunal formally convened for the purpose of arraigning the defendants. The formal trial opened on June 4, 1946, with the delivery of the opening address by Mr. Joseph B. Keenan, Chief of Counsel. The actual presentation of evidence began on June 13, 1946. Shortly after the formal trial had opened, the Tribunal adjourned the proceedings for about two weeks to enable air conditioning to be completely installed in the courtroom. From the time the Tribunal resumed, the Prosecution continuously presented its evidence without interruption or recess until it rested on January 24, 1947. For purposes of convenience in handling the vast amount of material which the Prosecution had to present to the Tribunal, the Prosecution*s evidence was broken down into phases. By the con- clusion of the first year of the occupation the Prosecution had completed the presentation of its evidence on four phases of the case; namely, the Constitution and Government of Japan, Propaganda in Preparation for War, the Manchurian Aggression, and Aggression Against China. During the first half of the second year of the occupation, the Prosecution completed presentation of its remaining phases.. The phases covered in that period were Narcotics and Opium, Economic Aggression in Manchuria and China, Conspirational Re- lations between Germany and Italy, Aggression against France, Aggression against the Soviet Union, Economic, Military and Naval Preparation for Aggressive War, the Illegal Fortification of 'the Mandated Islands, Aggressive Warfare against the United States and Great Britain, Aggressive Warfare against the Netherlands, Atrocities against the people of the Philippines, General Conven- tional War Crimes and Atrocities against civilian populations in other areas, and evidence relating specifically to one or more of the individual defendants. The Prosecution finished presentation of its evidence on January 24, 1947. In the course of the presentation of its evidence, the Prosecution brought before the Tribunal 104 witnesses and submitted 2282 documents consisting of official records of the 44 Japanese government and of other nations, interrogations of the accused, affidavits, and other similar documents. The documents presented were but a small fraction of the total number of documents scanned and translated, and were selected after mature and deliberate consideration as the best then available for the presentation of the evidence against the accused. In preparing any document for presentation to the Tribunal, it was necessary under the rules of the Tribunal to translate the document into either English or Japanese. In the event the document was in a third language, it had to be translated into both English and Japanese. Thereafter, 2?0 copies of the document had to be reproduced for distribution to the Tribunal, the Prosecution, Counsel for the Defense, other public bodies and newspapers. The Defense began to present its evidence on February 24, 1947 after a short recess to allow for preparation. The several hundred witnesses which the Defense proposed to call hove had to be investigated for purposes of cross-examination and their connection with the case determined. Defense documents must be analyzed for purposes of determining their relevancy, materiality, and probative value as evidence to meet the issues of the Prosecution. 45 TWO YEARS OF 0 C C II P S II 0 II LEGAL SECTIOW Investigation of War Criminals During the period November 1, 1945, to July 21, 1946, the V/?Alg'’t'10n Dlvision had under investigation 636 cases. A totai or 430 cases were completed, leaving 206 on hand at the end of the period. t,lt„,jranf offices were opened during 1945 and 1946 in Osaka, Fukuoka, Sapporo, Nagoya, Hiroshima, Niigata and Sendai so that interrogations and investigations could be carried out with a minimum of delay in dealing with Japanese Government agencies. *?u515f July 21, 1946, to July 21, 194?, the Inves- ti'ontJntlth1V?;A<0n tod under investigation 2,029 new oases in addl- enA® 206 oase? not oonoleted by July 21, 1946. Of these ?9non’ 90 Were This resulted in a cumulative total of °®ses completed of the total of 2,665 under investigation during the period from November 1, 194?, to July 21, 1947. Apprehension of Suspected War Criminals rvAA-PS Of July 15, 1947, the apprehension of 3 214 Japanese Sus- pects has been directed by the Legal Section, some for trial in apan and some for_trial by Allies in areas outside Japan, Of ?i^S;rD^barnai'PS0Aimstfijr have been i itemed in Sugamo Prison 216 were deleted from the memoranda after proof was received that nrovonS?f£S wer° held in prisons outside Japan, or were otherwise proven-to be unobtainable or not desired. A high percentage of ,ri„sf_^nt|rnedZ approximately 55 per cent, have been or are await- ing transfers to other areas for trial. Seventy-five have been proven dead and authenticated death certificates have been re- AS °f July 1947> thero were 393 Suspected War Crimi- nals whose apprehension has not vet been accomplished. This .Ifcent or the includes a number who are believed to be held by Allied Nations in areas other than Japan proper and also a number who are believed dead, but whose death cannot be proven. 5 __Q. Durpast year, requests have been received from Governments and the United States Navy to locate, for> cnd dispatch Japanese lav/yers and interpreters to war crinesetrl0irOUghOUt th<3 ’’aoi:fic» t0 assist in the* conduct of f„,, of July 28, T-94-7,Japanese personnel in the categories indicated have been engaged: BRITISH: Singapore Hong Kong Lawyers Interpreters Bhuddist Priests 43 4-2 2 Lawyers Interpreters 2 2 DUTCH (NEI) Lawyers 9 Interpreters 11 PHILIPPINE REP (MANILA) 10 10 AUSTRALIAN (Rabaul) 4 Admin. Pers. 3 10 U.S. NAVY (Guam) 4 Inter prcters 3 Prosecution of Suspected War Crimnnl.g The Prosecution Division of the Legal Section began 18 months of actual trial work before Military Commissions appointed in December 194-5. During this period of time prosecutors have organized, assembled and clarified an enormous volume of documentary evidence; classified much oral evidence coming from witnesses, and drafted charges and specifications against many accused Japanese. The Prosecution Division has been charged with the responsi- bility of preparing charges and specifications and trying Class B- and Class C Japanese War Criminals. A large number of the case involve atrocities committed in Prisoner of War Camps, aboard transports enroute to Japan, against B-29 crew members after they had parachuted to safety, by members of the Japanese Army Medical Corps in conducting medical and surgical experiments, and atro- cities involving the Japanese Kempei Tai, or secret police. Material assistance and a grea-t contribution to the program has resulted in the assignment to the Section of a number of Australian, British, Canadian (mission completed), Chinese- and Dutch officers and other military personnel from these Allied countries, all of whose Governments have furnished excellent documentary evidence and, in many instances, have been able to procure live witnesses for the trial of cases here. As of July 1, 1947. after 18 months of actual trial work, the Division has assisted in the trial of 146 cases involving 274 perpetrators. Of this group, nine were found "Not Guilty”; in 25 cases the death sentence was imposed and five accused have been executed to date. Life imprisonment was imposed in 21 cases Sentences ranging from 25 to 50 years were imposed in 36 cases, 10 to 25 years were imposed in 83 cases, 5 to 10 years were im- posed in 37 cases, and 5 years or less were imposed in 62 cases. 47 TWO Y E £ R S OF OCCUPATION SUPREME COMMANDER FOR THE ALLIED POWERS ECONOMIC PUBLIC INFORMATION OFFICE, GHQ AUGUST 1947 TWO YEARS 0 F OCCUPATION CIVIL COMMUNICATIONS First Year. In the first year the primary Job,in the communications field was demilitarization. All fixed radio statiohs and telegraph and telephone offices of the former Japanese Army and Navy were closed and dismantled, or con- verted to the use of the Occupation Forces, the Japanese Demobilization Board, or the domestic communications system. Stocks of equipment and supplies were inventoried and distri- buted to the public communications offices. The Broadcasting Corporation of Japan, which is the sole broadcasting agency, had been a propaganda weapon of the militarists. It was re- lieved of undesirable personnel and thoroughly reorganized as a free and democratic institution. SCAP ordered the Japanese Government to strictly control all radio stations, through licensing, assignment of frequencies, and increased surveillance of operations. In order to speed the work of repatriation, radio broadcasts were beamed to Jap- anese nationals outside the home islands, and other radio ser- vices were provided to Repatriation officials. kt the same time radiotelegraph newscasts from Japan to the outside world were inaugurated and radiotelegraph circuits be- tween Japan and the U. S. and London were set up for press messages. Other inter-national radiotelegraph circuits were opened and submarine telephone and telegraph circuits were main- tained. The work of rehabilitation began during the first year and the Japanese Government appropriated one billion yen for communications construction. Actual and budgeted expend- itures were carefully scrutinized so that they would result in services for the Occupation Forces or the domestic internal economy. Production of communications equipment was set into motion. Current requirements of the postal, telecommunications and broadcasting systems were net, Production of vacuum tubes, which would be used by radio owners in all parts of Japan, was particularly emphasized. Prom an administrative point of view, the most important envelopment of the first year was the elevation of the govern- ment agency managing, communications to Cabinet level, thus assuring the newly-named Ministry of Communications, an amal- of enterprises whose operation entailed the employment of 400.000 persons, of adequate status to present to the Cabinet the needs of the Japanese civil communications -systems. |gc.ond Yepr: ■&c-:rji;ni strati on? In order to continue democratization oi the Japanese communications system, SCAP encouraged the setting up of a Temporary Legal Committee, which framed eight new communications laws concerned with postal, telephone, tele- radio operations. The New laws are being introduced in the current session of the National Diet. International Telecommunications pri?clpS1 the Japan Telegraph and Construction Company, both highly autocratic in their structure and. policies and forming nh obstacle to the aenocratic integration of the communications system, Cover) 1 were placed in the process of liquidation, -by a SCAP directive issued 25 March. At the peak of its power, the ITC had in- vestments in Korea, Formosa, Mongolia, Manchuria, Central China, the East Indies, Singapore, Hongkong, Hainan and Palao, The ITC had managed its far-flung interests through a group of interlocking directorates , . Liquidation of these companies ,is being accomplished through the Holding Company Liquidation Commission, which called in all stocks of, other companies owned by the ITC; and JT&T. These stocks will be sold to the public by that commission. The operation of the facilities of the companies was taken over by the Japanese government, which’became the employer of the former personnel of these companies. SCAP also brought about innrovements in the accounting and budgetary .procedures of the Ministry of Communications, In December, 1946, for the first tine in its history, the Min- istry of Communications itemized by projects its budget for the fiscal year ahead before submitting it to the National Diet. The practice previously had been to secure a lump sun appropriation and then to allocate it to various uses. A new accounting system, for the Ministry, whereby the financial status of its enterprises might .be determined sep- arately, was installed to replace the cash system previously in use. On 1 April 194? the Diet passed the Communications Enterprises Account Law, ?jhich provided for the change to .a modern accrual accounting system. A further reform of the Ministry of Communications accounting system is the establishment of a depreciation reserve.< A program to secure data on which depreciation accounting procedure may be based has been initiated, and the year ahead should see this project brought to fruition, ■' 4 ' Much remains to be accomplished, however, in the imple- mentation of the plan for the integration of operations at present performed by the Japan Telephone Equipment Company, whose functions are being assumed by the.Ministry of Communications, This company has maintained approximately 196.000 privately-owned telephones. The Ministry plan is to acquire rhese instruments, through donation or purchase, and maintain them. It is es- timated that entire integration will require from.three, to five years, Telephone and Telegraph. The second year saw great progress made in the repair of telephone exchanges, through- out Japan. This program, initiated in September. 194b, has brought about the rehabilitation of all major offices, thereby improving the service to approximately .600,000 telephones. Due to the installation of 130,000 new telephones, the present total in Japan stands at approximately 1,160,000. An average of roughly 5,000,000 telegraph messages per month was maintained in the year ending Augrot. 1947. which approximates.-.the monthly traffic loads in the years 1940 .and 1941, In a program covering the next three to. five years the Ministry of Communications formulated a new policy under which the government will own FBX installations. Formerly privately owned, the 20,000 PBX installations throughout Japan will grad- ually be, brought .und.er Ministry ownership. Construction on one major cable route has been*continued throughout -the year, and a sectiah consisting of approximately l85 miles of non-1ended carrier cable with cable carrier repeater- stations Has been brought to 95 per cent completion. Practically 2 all direct war Manage to sections of outside toll plants has. now been repaired or rehabilitated. Maintenance of sub-- marine cables, which are extremely important to the communi- cations system of insular regions, was facilitated by the acquisition of a second large cable ship. The major communications requirements of the Occupation Forces have been served during the second year following the Surrender by an average of 1,200 leased line circuits. In addition approximately 70*000 toll calls a month have been placed over long distance circuits of the domestic system. The work of the next year will include implementation of the outside toll plant program, and arrangements to obtain most of the common items of Occupation Force signal main- tenance supply from Japanese manufacturers, instead of importing them from the United States. International Radiol . International radio services continued to expand durirgthe second year of the Occupation. Authorization was given to the sending of private and non-transactional business radiotelegrans between Japan, Hawaii and the United States:■radiotelegraph and program transmission was opened be- tween Japan and Manila; and a radiotelegraph circuit for official government messages ?jas set up between Japan and the Netherlands East Indies, Other international radio services were continued, including beamed radiotelegraph newscasts from Japan to repatriation areas in Southeast Asia and Manchuria. Improvements were made in some services. Due to intolerable delays on the direct Osaka-London circuit, which follows an extremely northern route for considerable distance, the cir- cuit was rerouted via Colombo' in May 1947, bringing about an immediate improvement in the service. Domestic Radio: A limited public correspondence was react- ive coastal radio system. Radiograms now may be sent by Occupation personnel who heave ARO and FPO addresses to U. S. citizens aboard ship, A corresponding service is provided for British and other Allied Powers who make the necessary arrangements. Two radio quadrant-indicating aerial beacons were added to the five already operating in July 1946 for the navigation of Occupation Forces aircraft. SCAPIN 1166 which established regulations governing the operation of Japanese radio stations, as to location, power, licensing and authorizing procedures, and technical standards to be followed, was published August 1946, later revised by SCAPIN 1744 in July 1947. The Japanese have been required to expand their monitoring of internal and international stations and to establish self-- surveillance. As monitoring of international services was inad- equate, a close liaison with,the Federal Communications Commission Field Monitoring Division was established. The monitoring system has now expanded to 90 per cent of the strength required by SCAP, and has begun to show results. Weekly reports showing violations of standards requirements and engineering, mal- practices by offending stations now are being submitted to SCAP. 3 Broadcastings The second postwa? year saw some of the groundwork laid for the development of Japanese broadcasting as a popular medium of information ■ nd education and an instrument of democracy. Broadcast transmission had been before the war, and continued to be. conducted as a non-profit, public-service corporation organized under the Japanese Civil Code. The year’s, achievement consisted largely in the educatl n of new leaders whortook the place of■ those who had been in power during the militaristic periodf and in a study of the problems and prospects of broad- casting. This study has revealed the problems which confront leaders in the broadcasting field. These include legislative clarifi- cation of the legal status of the Broadcasting Corporation of Japan, the establishment of its financial structure on a sound basis, rehabilitation of facilities for transmission, reorgan- ization of distribution of programs and station and network coverage, and the improvement of programs so that they will constitute a better service to listeners. Studies have also been made to improve the design, production, equitable distribution and servicing of radio receiver sets from the viewpoint of the listeners. In order to develop the technical, social, economic and legal bases and future policies for the expansion of broadcasting services, including standard broadcasting, FII international broadcasting and television are being investigated. Communications Equipment Ha:-, iifacturing: The past 12 months saw the completion of the conversion of all communications equip- ment manufacturing plants in Japan from war-time' to peace-time production. Approximately 90$ of all plants possible to put back • into production have been rehabilitated. Practically all phases of the communication industry have been operating close to capacity. Production has risen substantially. xhe output of radio receiving tubes, an outstanding example, has increased from 160,000 tubes per month a year ago to the present rate of 629,000 tubes per month, and the plan is to bring production up to 1,500,000 tubes per month in the next 12 months. In order to properly handle communication equipment production and distribution problems, governmental controls have been est-: ablished over the distribution of raw materials arid blacknarket activities have been checked. Previously existing systems.of graft between private manufacturers and government procurement agencies have broken up., and the unhealthy situation of competition between private communication equipment manufacturers and the Ministry of Communications, which had been allowed to arise, has been abolished. Research and Development: In the pas-c year teleprinter weather.reporting circuits were established for the first time in Japan. Two weather reporting stations at Sendai and: -Sapporo are now linked with Tokyo, although the service is not wholly satis- factory, Radio teleprinter operation, another innovation in Japah, also is in an experimental stage, .Laboratories in Japan are emphasizing the search for material substitutes as scarcities are’ gravely Impairing production of communications equipment. A najot project which remains to be accomplished is the reorganization of the Ministry of Communications research and development laborator- ies to increase their efficiency, and productivity. During the past year surveillance.was maintained over all‘ communications labor- atories in Japan. 4 Postal Services: The standard which has been set for the rehabilitation of the Japanese postal system is that which will meet the minimum requirements of a democratic country and people. One of the most important problems was the reestablishment of international mail service between Japan and all .other countries of the world. These arrangements were completed 10 September 1946 when the first international postal service in Japan since the end of hostilities was inaugurated. Until January 194? only personal and family communications on pofetal cards in the regular international mails to and from Japan, and 'relief parcels to Japan were allowed. At that time international service was expanded to include non-transactional letters to and from Japan and all countries of the world. The opening of international airmail, the increasing of the weight limit of international parcel post relief parcels, and the addition of other postal services in operation before the war are at present being studied. Investigation of the domestic postal system has brought to light a multiplicity of feudalistic and paternalistic allowances and commissions in its wage structures. One beneficial result has-been the abolition to a great extent of the giving of the so- called "Free Fund*' allowances which had been abused by the chiefs of special post offices, who are not subject to all accounting provisions of regular post offices. Faster handling of mail has resulted from the adoption of modern methods of mail handling and distribution, from improve- ments in railway mail cars and from revision of mail dispatch schedulesT Investigation of the Japanese Postal Transfer system also has resulted* in a narked increase in efficiency through revision of laws, increases in fees, and new budgeting methods, A survey of accounting procedures for receipts and disbursements at post offices has effected many improv *..ents, among which are adequate measures for the protection of funds. Methods to curb illegal practices of postal employees such as embezzlements and the cashing of frozen checks have been instituted to protect the public• A survey of the Japanese Post Savings system, the "poor nan*s checking account" in Japan, brought about a reorganization which has not only increased .its efficiency of operation but its relia- bility, Services and safeguards necessary for the democratic tradition, which were discontinued by the Japanese during the war, have been reintroduced, and many autocratic practices have been eliminated. The tangible achievements during the past year have consisted in the further freeing of the Janrmese communications system, from undemocratic influences and practices through the destruction of a powerful telecommunications monopoly, the inauguration of modern accounting procedures, the rehabilitation of telecommunications lines, the reopening of international communications—including international postal services, the improvement of quality and the raising of the* production of communications equipment to essential levels. 5 TWO YEARS OF OCCUPATION Civil Property Custodian During the first year of the occupation, the Japanese Govern- ment was instructed relative to the custody and disposition of the property of.foreign nations and their nationals which included those of the United Nations, enemy nations and property Yirhich the Japanese had looted from all parts of their former empire, plus certain miscellaneous property. SCAP also took over the control of certain Japanese domestic property which included those of ultranationalistic and terroristic organizations, suspected war criminals and large quantities of Japanese Government precious metals and gems. At the same time, investigation of the foreign exchange assets of Japan was begun and thousands of external assets were codified and tabulated. The collection of diamonds seized from the Japanese Government and stored in the vaults of the Bank of Japan was inventoried, classified and evaluated. Experts of the Smithsonian Institute, Washington, D,C.,. were brought out to do the job. Substantial amounts of previously unreported property were uncovered as the result of investigations and audits. During the past twelve moqths much has been accomplished in the task of control, custody and especially the disposition of foreign property in Japan. Approximately ¥ of United Nations1 and their nationals1 property has been restituted in fifteen separate cases. A wider recognition is now given through powers of attorney to persons seeking restitution of property for persons who can not come to Japan at this time. Localized responsibility is still with the Japanese Government for the continued protection and preservation of United Nations*property scattered throughout the islands. German property, such as movable assets of the German Govern- ment and repatriated German nationals has been placed in four ware- houses under United States Eighth Army supervision and the movable assets of German enterprises are placed under Japanese custodians. Authority has been granted to dispose of movable property for the internal economy of Japan or for the export program where it is spoiling, deteriorating and depreciating. To date accomplish- ments include the disposition of medical supplies of the German Naval Hospital, the sale of dyestuffs for ¥ 37?000,000 and the disposition of stocks of three German corporations. German real estate valued at approximately ¥ 22,000,000 and representing 130 units of real estate is being administered and a policy for the rental and payment of insurance, taxes and main- tenance charges is being formulated. There are 78 enterprises in Japan of vested German interest with gross assets estimated at approximately ¥ 133,000,000. With the exception of five corporations and partnerships, none of these enterprises are operating. Japanese custodians have been appointed where necessary. The status of three very large Japanese concerns with mixed German interests is pending determination as to either liquidation of assets or sale of shares and participation in annual profits. Pending this determination, measures have been taken to hold in escrow, under SCAP, a total of about ¥ 10,000,000. 6 Looted property is that which can be identified as having been located in an Allied country at the time of occupation of that country and which was removed by fraud, force, or duress .by the Japanese or their agents. The fact that payment was made is disregarded unless there is conclusive evidence that fraud, force, or duress did not take place. During the year. 86 individual claims have been received from the United Kingdom Reparation and Restitution Delegation, plus lv333 individual ship claims* A total of 105claims has been received from the Philippine Reparation and Restitution Delegation, A total of 89 claims has been received from the Chinese Reparation and Restitution Delegation, A total of 137 claims has been received from the Netherlands Reparation and Restitution Delegation. Restitution for the year amounted to .a total of 41 as follows Ships : 15 (China 4. Korea 9, United Kingdom 1, Netherlands 1) 5 (Philippines 3, British 2) Automobiles Cultural Objects: 13 (Netherlands 4, Korea 1, Scot- land 1, Chine 2. Solpman Islands 1, Philippines 2, United Kingdom 2; Industrial Equipment: 2 (British 2) Miscellaneous s 6 (China 3, Netherlands 1, British I, Philippines 1) Miscellaneous property Irv Ived the property of neutral nations and "special status" nations. In this field an investi- gation was conducted as to illegally possessed foreign films in Japan. About 2,500 foreign films were taken into custody. Data has been secured on all property in Japan of the various puppet governments. An effort was also made to ascertain the source of the funds with which this puppet property was purchased. Procedure for disposition of this property is under, consideration. On 18 October 1946. the Supreme Commander for the Allied Powers sent out Invitational letters to.the eleven member nations of the Par Eastern Commission requesting the appointment of per- manent five-man Reparation and institution Delegations to be stationed in Tokyo. Since that date, all nations have sent Reparation arid Resti- tution Delegations to Japan with the exception of India. The ' Delegation from that country is expected to arrive in the near future. 7 TWO YEARS 0 F OCCUPATION CIVIL TRANSPORTATION 1.* Transportation Status at Tine of Surrender* At the time* of surrender, Japanese transportation facilities were in poor condition. The Merchant Marine, with less than one million operable gross tons, was at less than one-fifth of its immediate prewar strength. The majority of usable vessels had been built during the war to sub-standard specifications and were badly deteriorated due to lack of proper maintenance and to Initial use of sub-standard materials. Although the railways had suffered comparatively little actual war damage, lack of maintenance to permanent right of way, rolling stock, and communications, coupled with failure to rehabilitate actual damage on a current basis, had caused gross, deterioration of efficiency. Municipal trans- portation was seriously disrupted due to bombings. Over fifty percent of the bus and trolley equipment was totally destroyed or badly damaged* Highway transportation was at a low ebb due to deterioration, both of roads and vehicles. 2, Practically all transportation was operated or controlled by the Japanese Government through the Ministry of Transportation, with private enterprise and initiative almost completely stifled. Two-thirds of the railway system is government owned and operated. During the war, the government took over from private interests the entire operation of the merchant fleet. 3. Immediately after the surrender, the Occupation Forces assumed supervisory control of portions of the transportation system. The Eighth Army, through the 3rd MRS exercised supervisory control over land transportation to the extent necessary to serve the Occupation Forces. A Shipping Control Authority for Japan (SCAJAP) was established to supervise the operation of the merchant fleet. SCAJAP, now functioning under- the Commander, Naval Forces Far East, directs the activities of the Civilian Merchant Committee (CMC) which is the operating agency of the Japanese Government functioning under the Ministry of Transportation. In September of 1946. a Civil Transportation Section was established in the Head- quarters of the Supreme Commander of the Allied Powers to advise on policies relating to use and rehabilitation of water and land civil transportation facilities of Japan. 4, Target Programs. Programs for rehabilitation were set up to accomplish restoration of plant and equipment necessary to sustain a minimum level of economy. For the railways, the programs include reconstruction and rehabilitation of housing and building facilities, of equipment, and of permanent way. Programs for municipal and highway transportation include construction of trucks buses, street-cars, etc. necessary to replace worn-out and des- troyed equipment. Programs for the merchant fleet include plans for salvage, major repairs and completion of construction of new vessels whose keels have already been laid. Other programs to improve efficiency of operations were established at the same time. These include planned maintenance and repairs consistent with the availability of materials, labor and funds. Programs for-effecting changes in forms of control of transportation include plans for breaking up of monopolistic controls and restraints, means of financing the costs of salvage and major repairs, and the re- establishment of a normal pattern of rates. These programs in- volve considerable legislative reform. 8 5, Although inerked progress was made against rehabilitation programs during the first year of the occupation, the major accomplishment was the formation of the programs themselves and the establishment of goals. For the railways, first priority was given to restoration of equipment and buildings necessary to eliminate bottle-necks restricting operating efficiency. With regard to the Merchant Marine,, first consideration was given to rehabilitation of vessels which could most, economically and speed- ily be put into serviceable condition. Due to the low level of industry(and commerce, immediately after surrender, the traffic load on municipal and highway transportation was light. Early restoration of minimum operations was fairly rapid due to utilization of critical supplies released from Japanese Army and Navy stocks. Street and highway repair programs, however, pro- gressed slowly due to shortages of paving and.repair materials. 6. Progress, In Rehabilitation of Railroads.. By July 1947, approximately one-third of the railway repair capacity had been permanently restored. The repair program itself, however, is behind schedule due to critical shortages of materials such as steel, coke, carbide, etc. It is estimated that approximately fifty percent of housing and building reconstruction is completed. There remains considerable work to place the railway system in a reasonably normal condition for continued operation, but with an improvement in the supply of essential materials, it; is believed that the program will keep abreast of .the general economic recovery of the nation. Rehabilitation 6f railway communications is progressing satisfactorily and much of the program will have been,completed by the end of the Fiscal.Year 1948. Progress of railroad rehabilitation is reflected by the daily average of gross ton kilometers, which have increased 26.3 percent over 1945* Gross tons per train have .increased 34.2 percent and coal consumption has decreased from 96 kilograms to 90 kilograms per 1,000 gross ton kilometers. ?• Progress in Rehabilitation of Merchant Fleet. Progress of the program of rehabilitation of the merchant fleet has been slow but steady. At the time of surrender, the Japanese reported 526 steel vessels of over 100 G/T, a total of 736,000 gross tons in active service. A recent figure for Japanese steel vessels * over 100 G/T under SCAJAP control shows 777 operating ships with a gross tonnage of over one million tons. The salvage, program is approximately one-half completed. Progress is necessarily retarded by lack of materials and funds. It is estimated that the salvage and major repair program can be completed by the end of th4 fiscal year 1951 provided materials, labor, and funds can be made available as required. 8. Because of acute shortages in materials, maintenance pro- grams are below desired levels. .In order to conserve materials, emphasis' is being placed on essential maintenance, but in many instances work which should be done on a current basis is being deferred. 9. Progress In Democratization or Transportation Management and Control. Considerable progress has been made in programs for democratization of forms of management and control. Obstacles are rapidly being overcome.and positive results.are looked for within the current .year. Laws have been or are in process of being enacted to accomplish reforms in land and harbor transport, also toprovide and protect ah orderly and democratic framework within which a Merchant Marine can be re-established. Because of gross distortions brought about: by the war and subsequent disturbed economic conditions, a normal pattern for tariffs cannot yet be formulated, but stymies now in progress are calculated to point out .and provide a means of regaining normal freight rates both for land and water transportation. 9 TWO y .3 A FiS OF OCCUPATION ECONOMIC AND SCIENTIFIC SECTION In the first two years of the Allied Occupation of *Japa.n, SCAF's activities in econonic natters have been directed toward exadfeating the'old imperialistic; noh-demdera'tic, econonic pattern of life'and. replacing it with a new framework which should uea’d into democracy and rightful membership among the com- munity pf nations* In each of the specific fields of labor, in- dustry apd. industrial reparations.* foreign trade, finance, price control and. ra t ioning sole’nc e anc te c hnology, ant i-1 rus t and , cartels, and in the basic economic research necessary for an under- standing of the several fields, a guided" denpbratizing program is under way./.The purpose is fourfold,‘to insure that Japan will not again wage aggressive war, to reform and democratize the Japanese economic structure, to restore* the4 Japanese economy.on a sound self-supporting basts, and tb -assure*' the "'Japanese people of . their "right to a peaceful, fruitful'existence;* FINANCE . Within the field of SCAP set but on one hand to destroy those aspects’ of the Japanese financial,structure that •were used to promote the war* On" the ether hand, the program was intended to maintain, and strengthen these, aspects which could, con- tribute to the earliest possible’recovery of Japan in its new and modif ied s e tting.: "In money- andxbanking the first!yearfs program was one of issuing superimposed regulations to control repatriates* funds, to from removing the capital assets of once con- quered countries*, to block and segregate bank accounts, financial instruments or other property that later might have had value as foreign exchange assets, to-place stringent restrictions on bank withdrawals.,, to institute a system of credit rationing and to x * authorize a conversion/' Toward the end of the first year certain regulations were relaxecMto encourage reorganization.and reopening of financial institutions, as well as industrial and concerns:.; Systems.1 for reporting" the: condition of all Commercial banks were also-established. * - In. the, second w year, while many' of’ the controls continue, reorganization is]the keynote;!-A program pf licensing foreign bahks to operate on a limited1 scale and* of authorizing selected types o£;‘foreign. businesses-to operate, has been developed. A Reconstruction Finance Bank hasjb&en. established and a general re- organization of all corporate- financial institutions, including insurance companies, is progressing. In the final months of the second year the financial aspects of"reopening large scale foreign trade has become responsibility. Ili the field of public finance- a system of control-, supers visibh, and approval:pf governmental budgets was established in the first year. Control over* the of the Imperial House- hold was also established and maintained and supervision over the tax structure was Instituted. Two extraordinary tax laws were enacted.;. The Captial Levy Law had the twofold objective of decon- centreing private fortunes and of providing funds fnr the Govern- ment > .while the, War Indemni ty Tax had : a. s it £ objective the cancella- tion of wap damage. claims. • *"v second yearinpubllc finance saw the reform of govern- mental 'accduiitlng, procedures, :the power of the" Diet over public j finance increased: by virtue of the new constitution, the establish- ment of procedures for the disposition of State*owned property, and the reorganization of the ordinary tax structure, including the ’’pay-as-you-go" tax plan. 10 Perhaps -one of the most significant aspects of financial re- organization has been .in the field of "liquidation.1* In the, first year of the Occupation,46 institutions were closed, principally financial colonization and wartime development companies which were used to spearhead the economic penetration of conquered areas or to tighten control on the home front. The total book value of assets of the 46 Institutions within Japan was5f 176 billion. During, the first year proceeds of the sale or collection of certain of these assets totaled ¥ 1.8 billion and payment of domestic claims was ¥ 0.6 billion* During the second year, 113 additional Wartime institutions were closed, including domestic control associations and sub- sidiaries and affiliates of institutions previously closed. Total assets of the 159 closed institutions are .estimated at ¥ 209 billion and liquidation proceeds have been ¥ 8.8 billion and pay- ment of domestic claims hae been ¥ 7.4 billion. ANTITRUST AND CARTELS The initial step in this field was to direct the creation of the Holding Company Liquidation Commission, a juridical person empowered to liquidate the major holding companies "and tp decon- cehtrate the control held over them by individuals. During the first year the activities of 41 holding companies and their approximately 1,200 first-line subsidiaries were in- vestigated and designated as "restricted" concerns. These.com- panies were prohibited from engaging without prior SCAP approval, in' any act not construed to be in the normal course, of business.* This enabled SCAP to maintain surveillance so as to preclude the dissipation of assets until dissolution or reorganization could be achieved. Approximately 2G0 applications for exception to the prohibitions above were reviewed, investigated, and acted upon during the year. In addition to the holding companies investigated, more than 2,000 control companies, associations, and unions were investi- gated during the first year. As a result of these investigations*, the Japanese Government was directed 'to dissolve all control asso- ciations and to repeal all laws and regulations which had fostered their growth. On the positive side the newly organized Japanese Economic Stabilization Board was directed to create agencies to allocate materials to specific industries. The Japanese Govern- ment was directed to dissolve the Koeki Eidan, the war-time foreign trade agency, and to establish in its stead a Japanese Board of Trade as the exclusive government agency to handle all foreign trade transactions, finally, the Japanese Government was directed to prepare legislation prohibiting international cartels and the execution by Japanese firms of restrictive international contracts. The activities of the second year consisted of supervising r the work of tbe Holding Company Liquidation Commission and of . designating 67 corporations as holding companies. The Holding Company Liquidation Commission designated 56 members of.Zaibatsu families and commenced investigations of 27 additional families ,1 to"determine if their members should be designated. The real and personal property of designated family members is controlled. All companies designated by the Holding Company Liquidation Commission were directed to effect measures to protect and preserve securities and other properties in such companies owned by foreign nationals since 7 December 1941, Late in the second occupation year liquidation plans were submitted by the Mitsui, Mitsubishi, Sumitomo, Yasuda and Fuji Holding Companies. On 3 July 1947. Mitsui and Mitsubishi, the two* largest and most powerful trading companies in Japan, were ordered by the Holding Company Liquidating Commission to liquidate Immediately* 11 The 6? designsted,holding companies had 150.8 million shares of stock with a par value of about ¥ 6.3 billion. The HCLC also took custody of over ¥ 500 million in bonds held by the 6? desig- nated companies and the voting rights of -the shares of 4,085 sub- sidiary and affiliated concerns. Antitrust legislation.w-s initiated in the second year and became law on 31 March 1947. Trade Commission was appointee' on 14 July 1947, to carry out the intent of the legislation. In the direction of restricted companies, more than 2,000 applications requesting permission to perform acts not construed to be in the normal, course of business were reviewed and acted upo'n in the second .year. .Expenditures of more than ¥ 4: billion were authorized for the rehabilitation of industries essential to the economic recovery of Japan. PRICE CONTROL AND RATIONING In tlje field of price control and rationing SCAP has directed the activities of the Japanese Government in the planning-and „ execution of the economic controls necessary to assure the equitabl distribution of food, production materials, and consumer* goods, and through price control, to minimize inflation. At the war’s end Japan's indigenous food stocks were very low and the wartime controls had broken. It was obvious that a severe food shortage would develop by the spring of 1946. In October the 2.1 go (1042 calories) staple food*ration was reinstated; this ration, although effective the previous July, had been allowed to lapse. About the same time the first food requirements study was made. *The anticipated food crisis began in April of 1946, and in May the Japanese government under SCAP supervision placed in effect an"emergency food deficit transfer plan." This plan brought out hoarded stocks and forced them into legal distribution channels at legal prices. Further to relieve the crisis, imported foods were released throughput the summer. While these actions did not result in an adequate diet for the Japanese people, they did pre- vent widespread starvation and unrest'. Without controls and plan- ning, large numbers of Japanese would, probably have starved arid inflation would undoubtedly have become rampant.* In August 1946, on the basis of plans drawn In the spring and early summer, the Economic Stabilization Board,1 a central economic control agency, was Created in the Japanese Government. A Price Board was also established. Both agencies, however., suffered from a lack of funds and from inadequate governmental support. The continued short food supply has necessitated various emergency measures during the second year. . In an effort to break the black market and to lessen the danger of mal-distribution, the official ration was raised to 2,5 go (1240 calories) and the Japanese were instructed to take vigorous action to improve the food distribution system and control the black market. , In February 1947, SCAP took vigorous action through the Japanese government to improve rice collections. Collections, though' 104 percent of the initial quota set.were short of the 110-percent revised goe,I. In tho winter and spring 267,000 tons of imported foods were released for distribution while an equiva- lent amount of rice was withdrawn from distribution to be made available during the critical summer months,." This rice is current- ly being released. While current supply does not meet the needs of the Japanese people, the deficit, is being spread so that there 12 will be a maximum shortage of five days ration per month until the 194-7 harvest Is in* The effective per capita distribution this year is 62.5 go per month as compared with.63.O go per month in 194-6. In view of the millions of returned repatriates, the total volume is actually larger than a year ago. , , , In June 1947 the new Cabinet announced an 8-point econ- omic stabilization program. It included plans for increasing the supply of food, distribution at equitable prices, allocations control of critical items, and a new price policy. In July the new Cabinet announced a price stabilization program setting prices at a maximum of 65 times the base period 1934—36. The hew program must be effectively inte-, grated if the new higher wages are to be effective In pur- . chasing basic necessities* In June 1947 the old neighborhood associations were abol- ished and a new democratic food distribution method was established. To help curb the black marketsr all non-essentia3 restaurants were closed on 5 July for a period of six months.. Under, the new "link11 distribution system the producer is enabled to purchase farm implements, fertilizer, fish nets, . and clothing at official prices, provided he sells his produce through the official distribution organization. In July 1947 the Japanese Government announced a coordin- ated nationwide distribution and anti-blackmarket program. to support the price stabilization program* to assure equity in the distribution of scarce necessities, and to reduce the real cost of living by minimizing the dependence of the- pop-- ulation on blacknarket supply sources. The program is in- tended to eliminate the sources of blacknarket goods.,, to control transportation of essential commodities, and to redirect goods into legal channels at official prices. It further aims to improve the official procedures and increase the efficiency of distribution. FOREIGN TRADE Two basic objectives are involved in the foreign trade ... policy of the Occupation;, they are, first, the creation of a , balanced trade position for Japan and, second, a volume of for- eign trade to bring the Japanese economy to the- average 1930- 1934 level. Japan requires imports of food and essential ,c raw materials and must be able to reach a, situation in which, either her goods or her services can be exchanged for the nec- essary imports. SCAPfs first "action with respect to foreign trade was to limit the activities of the Koeki-Eidan, the war-time import- export agency of Japan which was one of the tools of Japanese aggression. The Koeki Eidan was abolished and the Japanese Government was directed to establish a new agency to handle foreign trade. This agency, Breki Cho, in November 1945 es- tablished a yen revolving fund to pay Japanese producers for their supplies. To further aid the established a foreign trade account to pay for American goods from the pro- ceeds of the sale of Japanese goods. Both nations were thus in position to resume some trade even without the formal establishment of foreign exchange Sates. Primarily the Japanese havo shipped raw silk to the- United States and received foods from the U. S. By January 1946, 13 an ‘overall import-export program for the calendar year wgs established and approved in Washington. In March 1946 the U, S. Commercial Co. became the--commercial ageticy for SCAP in the.Ui Sf For the year 1946 imports were $305 million and*exports were $72 million. A new program was developed for 194? before the year • began.1 Progress to date indicates that imports will be approximately as in 1946 while gross exports will be more than three tines as great as 1946. The overall volume of both is still insufficient, however, and the la'g in the import pro- gram is indicative of the need for further attention. Mere balance of trade, even if it could be achieved, does not make up for volume. Of tremendous potential stimulus to Japan1s foreign trade was the decision on 13 August to use approximately $137,000,000 worth of Japanese-owned gold and silver as a base for acquiring foreign exchange. This "gold pot" will be util- ized as a credit base against which private or“governmental financing institutions of Allied or neutral countries will be asked to advance funds or commodities to activate their trade with Japan. ..The fund will serve as a credit base for.loans which 'could eventually total upwards of $500,000,000, Additional impetus to foreign'trade can be anticipated as private traders re-enter Japan on 15 August 194?* IITUSTRY In September 1945 Japanese industry had virtually ground t6 a halt. ! In the face of rapidly disappearing stockpiles of essential rqw materials and the .virtual lack of imports for many months iprior to surrender,.’ Japan1 s industrial remnants were disintegrating rapidly. For a considerable period the rail lines and. equipment only that maintenance absolutely hecessary to keep the dwindling stocks rolling. Stocks, of ingots and pig iron were at the vanishing point, and actually would have been non-existent had the Japanese been -able to*furnish the fuel to fire their open hearth furnaces, The immediate tasks :0f SCAP were to remove the war pio-cential of Japanese industry and to aid in the rehabilitation of, Japan*s industry to pre-dete mined allowable limits.' War potential was removed through directives, ordering the destruction of ar- senals . aircraft factories, and other- war,baking machinery. Following surveys^in November, 1945, initial.production goals which eventually would become industrial levels were established for the Japanese. * Later the Par Eastern Commission iet the production level of* the years 1930 to 1934 as the top limit for Japanese industry. That period included approximately two years of Japanese:depression. Following the early reforms, SC AP directed the Japanese.- Government to replace Industrial Control Companies’and Industrial Control Associationswith public agencies and1 with a publicly managed system; of materials allocation' designed to facilitate recovery. Concurrently SCAP directed attention to technological improvement in food processing industries' to. aid the Japanese tn achieving greater self-sufficiency in food. The shipbuilding industry was rapidly converted to peacetime activities and trawlers and fishing vessels of all types became its chief .product. 14 At present Japan's productive level is approximately one third of the limit set by the Far Eastern Commission and only 15, to' 20 percent of her peak wartime, output- of ■.T,;."'$he f prt*1of • SCAP have been the fight in- crease cqal rpreduction-and to distribute the, production -■ most effectively* r 1A1 though 36. million tons of. coal per year are regarded as*cssential to Japan's minimum economy, only small-quantities were coming from the pits at the. close of the war* At the' end- of ‘the,, second year of occu- pation the. rate of coal production approximately 26 million tons per year; intensive efforts continue to achieve increased production# ■ • Labor shortages. labor skillsi,,t1worn, out tools, financial: difficulties! chd inadequate housing: all play a part in the failure thus far:to achieve, the minimum production goal. .Production of many other Commodities kept pace with the coal output and distribution* , In. the field ■ of construction and reconstruction desperately needed housing facilities were made- available. Allocations of lumber, cement, glass, nails.,, copper wire, and other essentials for,;housing were made, by the Japanese Economic Stabilization Board*. The allocation system was buttressed by a system of building, permits intended to.halt non-essential construction while giving priority to the essential. The blackmarket in build- ing materials and construction was finally throttled,though not broken. ,Dy August 194? one-fourth.of the war-destroyed houses in Tokyo had been replaced. Substantial progress has been reported from other- bomb damaged*cities* Fertilizer production increased over thd two year span by more than 400 percent and the industry now appears $0 have the best reconversion record. Because a ,ton of fertil- izer means more than three additional tons of food (within limits) the fertilizer program Is vitally itipprtant' to the food-short Japanese, * In August 1946 SCAP selected industrial plants in nine industrial categories which would be subject to, reparations removal. These selections were designed reduce the surplus industrial capacity above the specified limits within which Japan's future, economy will be contained*. Above the level as designated by the Far Eastern Commission, 'oil machine, tools* ball bearing plants, caustic soda plants, shipbuilding facil- ities, sulphuric acid plants. ' spaa; plants, chlorine plants, munitions plants, and thermal electric .plants were designated for reparations. The recovery of the textile industry has been complicated by shortages in.raw materials, rawvcotton and wool, and by the shortage- of coal required for processing. Nevertheless, during the past eight months, production of the key textiles, reached progressively higher levels. Generally, the post war highs varied from-one fourth to.one eighteenth of the pre-war production records*. The post war gains-have been made, in the face of dwindling stockpiles of fuel and of raw materials. Virtually fill the textiler industries are living on day-to-day deliveries of coal, since stockpiles were reduced;‘Considerably below an emergency operating level in the last quarter of 1946, ; ; Production^in the key textile industries has increased from five tp . 15—fold since the beginning of the Occupation! 15 TEXTILE PRODUCTION COMPARISON * Jan". 1946 Post-war Peak (nonth) Monthly Average Pre-war Peak’ Year Gotten Yarn 1,885,000 V- (Apr •47) 130,000,000 (1937) (lbs.)' 27,394,00b Rayon Yarn (lbs.) 206,000 1,356,000 (Jim •47) 27,500,000 (.1937) Woolen and Worsted" Yarn 1,292,000 1 2,700,000 (Dec •46) 13,000,000 (1937) (lbs.) Haw Silk (bales) 2,957 16,834 (liar •47) 60,000.61934) The production trend in the textile industries during the next six to twelve months will depend almost entirely on quantl*- ties of coal which will be mined in Japan. Even ■ if_SCAP*s pro- gram for the import of raw wool and raw cotton are fulfilled :to the point where all operable capacity may be utilized, coal will be the limiting factor in the output. . Production of rayon requires more coal per unit output .than other industries and therefore is more seriously affected by the coal shortage. Attempts have been and are being made to import high grade rayon pulp and caustic soda. If additional coal were made available through expanded domestic production or imports, the chemical industry.and the rayon pulp industry could provide enough raw materials to operate the rayon mills at capacity. Cotton spinnes have been rehabilitating war-damaged and stored machinery steadily since, the first shipments of American cotton arrived in Japan in June 1946. On June 1, 1946, there were fewer than 2,500,000 cotton spindles operable, and only a quarter of these were In operation. A year later, there were 2.700.000 spindles operable of which 2,200,000 were operating. Further rehabilitation up to the 4,000,000 spindle limit set by the 11-nation Far 'Eastern Commission will be determined by the quantities of raw cotton which-are made available. The pre- surrender peak of cotton spinning capacity in Japan had been 12.500.000 operable .spindles of which 8,000,000 were operating. Eighty per cent of the cotton goods produced since June 1946 has been made available for export, with the result that suffix , cient cotton goods have been provided to liquidate the Commodity Credit Corporation debt, when the goods are sold. In addition, significant quantities have been made available for distribution to the essential coal mining, food producing and?processing, transportation, and communication industries. -. The quantity thus far made available for general distribution to the Japanese people has been very snail. The goal for monthly production of raw silk was set; last year at bales. This level was achieved late in 1946 and production has been stabilized at around these levels ever since. Emphasis has been placed'on types most desired iri the export market. Flans have been formulated for diversion of a considerable proportion of silk production into the weaving- industry where, it is’ believed, an important export potential lies. This field, and the field of manufactured silk articles, will be exploited more fully when private buyers arrive in Japan. The rayon industry has progressed slowly but steadily in the past six months and has reached several successive postwar production peaks. The gains in production volume have been snail when compared with the operable capacity.of the industry. Only one-haIf the effective* operable production capacity of the filament branch and 1? percent of the capacity of the staple branch are actually being utilized. Production volume is only *> percent of rrewar reaks. 16 The industry rust depend entirely on scarce indigenous supplies of coal, pulp, and caustic soda. Efforts have been made to increase production of these raterials and to rake larger allocations to the rayon industry. The production trend in the woolen and worsted industry has been irregular since the end of the war, A considerable stockpile of raw wool, originally built up to supply the Japanese army and navy, existed when the Occupation began. The woolen industry has conserved this stock and censured it slowly, stabilizing production at about the present levels in order to keep the rills in operation as long as possible. The supply is now approaching the vanishing point. The first postwar shipments of Australian wool arrived in Japan early in June, but the quantity of '7*481 bales is negligible when compared, with the 300,000 bale capacity of the industry, or with the consuming potential of both the . domestic and export markets. Export markets are being investigated for linen products, since the fiber is grown in Japan arid no imported materials are required. Production has been small, pending determination of the export potential. Supplies of Jute, hemp, and other industrial fibers were at an extremely low level-at the end of the war and have so continued as a result of inability to imp st significant quantities. Small imports of cordage fiber have been received from China, the Philippines, and the United States. LABOR In .the field of labor, the first year of the Occupation was concerned primarily with four main objectives: (1) creation of conditions under which a free and democratic labor movement could develop: (2) encouragement of^sound labor relations through ' collective bargaining; (3) creation of democratic labor legis- lation; and (4) effective use of Japan1s manpower resourcesi , Only the first of these objectives was accomplished during the first year, put important beginnings were made with respect to the others The first objective was achieved by dissolving the wartime:, "laborfront" organizations, by divorcing the police from labor administration, and by the ordered elimination of the repressive labor'laws which had blocked the development of labor unions through free self-organization. The Trac'e Union Law of December, 194established the framework of .basic labor rights^and provided for the of 48 tripartite Labor Relations Committees to handle, labor disputes. By August 1946.- 3.000,000 Japanese workers were labor union members,- While the rights of workers td strike * were abridged in those instances where the interruption of services would be inimical tp the objectives of the military occupation, work stoppages were few and of sport duration and in no case was intervention by occupation troops necessary. During the first year, an Advisory Committee on Labor, consist ing of 12 American experts in labor legislation, surveyed the labor policies, programs, and agencies of the Japanese Government.and pre- pared detailed recommendations. Discrimination because of race,, nationaility. or social status was forbidden by SCAP directive. Finally, initial steps were taken toward the "rationalization" of the extremely complex and cumbersome Japanese wage structure. In the manpower field, a public works program was created to handle the problem, of unemployment and to speed reconstruction of public works. Special recruitment programs were undertaken to staff the textile and mining industries. -Initial steps were taken for the reorganization of public employment exchanges and beginnings were mde toward the abolition of Japan's malignant "labor boss" recruitment system. 17 The labor policies and programs of the first year wer£,con- tinued and successfully extended in the Second year. mem- bership nearly doubled and both the federations of labor and the employer organizatibns took definite shape,.with unions giving increasing attention to internal democracy. While labor disputes increased in number most of them were settled by direct negotia- tions or by the successful attention of the Labor Relations Com- mittees. A proposed general strike was averted, however, only by SCAP intervention. V/ithin the Japanese Government the labor administration agencies were strengthened arid several new agencies were created. By August 1947 the new Ministry of Labor had three old Welfare Ministry Bureaus. Labor Administration, Labor Standards, and Employment Security; and two new Bureaus, a Women's and Minor’s Bureau and a Bureau of Labor Research and Statistics. By the end of the' second year, the general framework had been completed for a system of modern labor legislation which compares favorably with those of progressive democratic countries. Import- ant new laws included the Labor Relations Adjustment.Law (September 1946), the Labor Standards Law (April, 194?)% the V'orknen’s Acci- dent insurance Law (April. 1947). the Seaman’s Law (April. 1947) v- ‘ and the Employment Security Law (August, 1947). Legislation providing for unemployment insurance was introduced in the Diet in August, 1947* Throughout Japan both employer and labor education.was greatlj expanded-during the .year and material progress' was made by both f national and prefectural Labor Relations Committees in their organization and operation. In the manpower field major second year objectives have been: (1) to develop an effective system of free public employment office (2) to eliminate archaic and undemocratic labor recruitment prac- tices. (3) to promote full use of Japan*s manpower resources in activities supporting economic rehabilitation, and (4) to encourage effective unemployment measures. The public employment exchanges were stripped of their last vestiges'of wartime labor controls and emphasis directed toward service to workers and employers.’ Steps were, taken to eliminate labor bosses from labor organizations -and to prosecute cases bordering on indentured service. Special recruitment programs raised total employment In the coal mines from 232,000 to 410,000 and irj the textile industry from 173,000 283,000. The public works program became effective during this year.and at its peak gave employment to some 1,300,000 persons and plans were laid to rake the program more effective in urban areas. The katayama Cabinet announced unemployment insurance as one part of the Govern- ment 1 s eight-point reconstruction program. SCIENTIFIC AND TECHNICS In October 1945. SOAP*s Directive No., 3 broadly prohibited scientific and technical research in Japan and required monthly reports from Japanese scientists. The purpose of the initial approach was to break the former subservience of scientific en- deavor to the Japanese war effort. During first year, SOAP conducted continuous and intensive investigations of Japanese scientific research activities. These investigations shewed that Japanese science and technology no. longer offered a threat to the.safety of the occupation forces. Hence restrictive control was virtually eliminated and the policy changed to one of cooperative encouragement of peaceful scientific investigation. A new directive authorized research to be under- taken provided such activities were not directed towards warrlike 18 purposes, aeronautics, or certain aspects of nuclear physics. Semi-annual reports replaced the monthly reports previously re- quired. Toward the end of the first year a basic policy was developed concerning the general attitude toward scientific work in Japan. Cognizance of research activity was to be maintained by requiring research to be reported and by making routine and special investi- gations in the field. Pure and applied research were viewed as activities of value to the rehabilitation of Japan and, by the natural inclinations of scientists in search of truth, an import- ant agent in a democratic society for establishing and maintaining a feeling of friendship between nations. A remolding of the scientific structure in Japan was to be brought about to make it fit a democratic society released from domination by nationalistic and reactionary personalities and thinking, as well as dogmas re- lated to age, political power, and social level. Such hopes for new freedom and democracy in Japanese science were to be achieved by the Japanese themselves, with SCAP offering guidance and help. During the second year of Occupation the reorganization of the Japanese science structure progressed to the point where a deliber- ative group was formed, to meet in August, 1947. This group pur- ported to be representative of all scientific fields, geographical areas, and personalities characterized by relation to industry, government, or academic institution, It was claimed by the Japan- ese that this group had the intellectual stature and national pres- tige to prepare and recommend to the Japanese people an effective and acceptable plan for the incorporation of the Japanese scientific community into the economic and social life of Japan, The group1s aim was to meet not only the scientific and engineering needs of reconstruction, but also to provide a vigorous segment of Japanese life which would continue to contribute to the preservation of democracy, and to establish and maintain the respect of all high- principled peoples of the world. To assist SCAP in the formulation of policy in this regard, arrangements were made for a group of-six American Scientists from the National Academy of Science to visit Japan in July and August, 1947, In the reparations program nearly all the laboratory equipment from Japan*s Army and Navy establishments has been collected and put in order to await final disposition to claimant nations. Work has continued on evaluation of the equipment and standards for packing. Detailed information on scientific and technical establishments, organizations, and personalities has’been collected and tabulated. There are approximately 500 organizations'in Japan whose research or engineering work warrants consideration, including 13 universities doing work in all fields, A report on the activity in each field of scientific and engineering endeavor, based upon reports by the Japanese of their research work, has been prepared. Other projects, most of which have long range Implications, have progressed to varying degrees. Some 3*7°° abstracts of Japan- ese scientific publications issued during the war have been made. Considerable effort has been directed to the problems of standards so important in research, in manufacturing, and more particularly in connection with foreign commerce. Work continues on plans for the Japanese to stimulate standardization for domestic progress and to achieve more ready acceptance of their products in foreign markets Even the scientists failed to escape some activity connected ™ith the Zaibatsu, for the latter organizations were involved in research activites as well as in manufacturing, banking, and trading. The Institute cf Chemical hnd Physical Research was divested of its Zaibatsu control and the groundwork has been laid for its rehabili- tation and Independent future aided by a substantial government loan. 19 Finally a program to fost r the sinplification of technical and scientific terminology in the Japanese language has been undertaken. Nationally recognized groups have been formed in each field to study and recommend appropriate action. RESEARCH A ID STATISTICS The inadequacy of the Japanese Government®s statistical system and the dependence of the Government upon data from pri- vate sources showed the need for a statistical mission from the United States. The Mission was composed of seven top-flight statisticians and economists, headed by Dr. Stuart A. Rice of the U.S. Bureau of the Budget. The Mission made numerous recom- mendations and suggestions for improving the organization and operation of the Japanese statistical system. The Japanese Government, cognizant of its statistical short- comings, established a central coordinating and planning group called the Statistics Committee. With the passage of the Statistics Law at the latest session of the Diet, the Committee has control over statistical surveys and for the organization of Japanese statistical agencies. Even before the arrival of U.S. Statistical Mission and before establishment of the Statis- tics Committee and the Statistics Law, the Ministry of Commerce and Industry was directed to establish a Bureau of Research and Statistics. The appropriation for this purpose for the fiscal year ending 31 March 1948 is ¥ 8.3 million. While the Statistical Mission was in Japan, considerable effort was directed toward the development of plans for an alloca- tion system to be administered by the Economic Stabilization Board of the Japanese Government. The Board has been required to take over the function of distribution of critical materials, formerly performed principally by control associations and contro companies. 20 TWO YEARS OF OCCUPATION GENERAL PROCUREMENT AGENT In accordance with the rules of land warfare, Japan was and is expected to provide supplies, facilities and services to meet the needs of the occupying forces to the extent that this can be effected without causing starvation, wide-spread disease, or acute physical distress. At the beginning of the occupation a procurement procedure was devised which, though simple, fully meets the needs. All requisitions, in the form of procurement demands, are placed on the Japanese Government whose responsibility is.to locate a source of supply. The supplier is. given a copy of a receipt form, upon delivery of the item and he is paid by the Japanese Government upon presentation of receipt. Because of the dislocation of the Japanese economy, it was pecognized that certain items were in extremely short supply. A list of such ciritcal items is published throughout Japan and procurement of items on the list is closely controlled. As economic conditions change, additions or deletions to the list are made. The outstanding feature of the procurement system used in Japan has been its flexibility. Early in the occupation, troops were spread far and wide but the smallest unit could present a procurement demand to the local representative of the Japanese Government. As the troop operations became more concentrated, the sane procedure could be used for filling the needs of larger groups, In order to exercise better control over procurement and to estimate well in advance the impact on Japanese economy-, a new system has been inaugurated which requires supply units to fore- cast their requirements several months in advance. These fore- casts cover miscellaneous indigenous items and, except in emergencies, must be approved by SCAP before procurement demands may be served on the Japanese Government. For accounting and reporting purposes all indigenous procure- ment has been divided into three general categories, namely: (1) Consumables. (2) Rentals of capital assets, and (3) Construction, rehabilitation and furnishing of capital assets. Current and future instruments covering indigenous procurement from the Japanese Government for the occupation forces will be segregated and identified within these categories. All procurement instruments involving critical items and all forecasts of miscellaneous indigenous procurement are referred to GHQ, SCAP for approval. The Commanding General, Eighth Army is the sole procuring agency of indigenous supplies from Japanese sources. Therefore, all procurement instruments approved by GHQ are referrid to ■ Commanding General, Eighth Army for processing. 21 TWO YE AH S 0 F OCCUPATION j-TATU.-AL RESOURCES The economic rehabilitation of Japan, within the limits allowed by the Potsdam declaration, depends in the ultimate analysis on the use which is made of her domestic resources. Early in the occupation comprehensive surveys in the fields of mining and geology, agriculture, fisheries and forestry were made. These surveys revealed $he extent to which utilization of Japan’s? meager natural resources had been dislocated by the war, and the urgent need' for basic long range reforms and emergency measures in each-of these fields. The most pressing- problems were the material shortages. At war’s end Japan faced a raj or coal and fuel, wood crisis. Rice production had dropped during 1945 to approximately 68 percent of average pre-war levels. Production of timber to rebuild shattered cities was virtually at a standstill. To avoid, the threat of starvation a number of emergency measures were recommended by SCAP to increase the indigenous food supply. Fishing areas '"ere extended beyond the original boundaries set in November of 194-5. To further increase fisheries production quantities.of netting, cotton, rope, wire, fishing vessels and other equipment were made aval? Ae from Japanese sources, Arrang rents were made through other SCAP sections for the purchase by the Japanese Government of surplus U. S. fuel oil for the use of fishermen. A total of 237*386 kiloliters of petroleum product? was imported for fishirg vessels in and distributed through the ’’link system”, which provided for the exchange/of fuel oil for fish in established proportions.- Exhaustive checks were made of fish landing reports. As an incentive to channeling fish catches into the legitimate market, fishermen were given extra rice allotments above their ration for obtaining specified quotas of fish catches% Fertilizer materials, seeds and farm tools wefe made avail- able to Japanese farters, lands formerly used for military purposes were converted into, farms. Agr° *ien economists compiled data for all Allied agencies concerned with food import problems. Food production, collection and consumption in the 194? rfce year were analyzed, and forecast analyses were made for the next three years. The methods used by the Japanese government in crop reporting and food collection were investigate-" by field check and appraised. Recommendations designed to minimize "opportunities for under re- porting crons", and for the upward revision of collection quotas as well as for streamlining the whole collection machinery were made. Responsibility for solving the problem of feeding Japan’s millions rests primarily with the Japanese government. Since this was and is still the most urgently critical single problem in Japan today, SCAP has exercised close surveillance of the Ministry of Agriculture and Forestry in administering the food collection program, and in encouraging production. Arrangements were made for increasing the production and importation of fertilizer in Japan, Recommendations were made to the Japanese, governr ent for increasing domestic fertilizer pro- duction and improving, distribution. Food crops were given high priority in fertilizer allocations. Plant disease specialists advised arid helped Japanese Ministry of Agriculture officials in developing methods for controlling plant: diseases. 22 Second only to the food problem in irportance was the fuel supply, upon which depends the industrial recovery of Japan, Field investigations of mining methods, capacities and reserves as well as labor and material requirements were used as a basis for recommendations for improving technical procedures. Con- ferences were held with Japanese cabinet ministers to stimulate governmental action. From November 1945 to October 1946 the pro- duction of coal was tripled, although it still remained below minimum requirements. The distribution system for coal, coke and lignite was revised. The latter half of the first year of the occupation brought a gradual shift from emergency operations to long range planning for improvements in technological procedures and for the con- servation of Japan’s dangerously depleted natural resources. Before the arrival of the occupation forces, Japan was twenty years behind the rest of the world in the field of mineral ex- ploration. SCAP experts in the field of mining and geology con- ducted a painstaking search, both within and outside Japan proper for potential sources of raw materials necessary for rehabilitating Japanese economy. For the first time in Japanese history a regional survey of all oil producing strata was undertaken as a primary step to full exploitation of petroleum reserves. ,Although the Jaranese petroleum industry produces in one year what the oil wells of Texas produce in one day, -it is an integral part of 'Japan’s economy. Through the efforts of SCAP engineers it has been put through a much needed reorganization both from the stand- point of operations and geological practices. At SCAP suggestion a Petroleum Exploration Advancement Committee composed of Japanese scientists, was created for the purpose of locating new sources of oil in Japan. Under the auspices of the committee 59 geological survey projects and 12 geophysical projects were planned for 1947* SCAP forestry experts begcan during the first year of the Occupation to conduct equally extensive surveys of all forest areas in Japan. These surveys revealed that Japan had been cutting two, possibly three times the amount of timber growing in her forests, and that at the same tine about 14 percent of the forest areas was unused because of the lack of roads. To put timber production on a sustained'yield basis, the Japanese government was assisted in Ccarrying out a reforestation program which calls for planting nine billion seedlings, enough to reforest 10 million acres in the next five years. SCAP has encouraged replanting of Japan’s overcut protection forests for erosion control. To bring unused forest areas into production, 276 miles of forest roads were built which opened up 270,000 acres of forestk supporting a timber volure of more than 500,000 cubic feet of lumber. Lumber is a key commodity in the industrial and physical recovery of Japan from the ravages of war. During World War II the whole lumber industry was under the complete control of the Japanese Governrent which exercised its authority through the Japan Lumber Company, SCAP faced the problem of retaining necessary control to insure proper distribution of lumber while at the same time allowing for the rebirth of free enterprise throughout the industry. T’-is was accomplished by the dissolution of the Japan Lumber Company, and the establishment of democratic forest industry associations, ordered by SCAP directive on June 26, 1946. The Japan Forest Industry Association established by the Japanese in It pierentation of the directive, is now composed of 35 prefectural associations and one national association. One of Japan’s major-problems has been the pressure of a large agrarian population on a lirited area of arable land. The Japanese government has made repeated attempts during the past 70 years to increase this are- by reclaiming and improving submarginal lands. 23 During the first year of the occupation, SCAP specialists reviewed critically the latest,Five-Year Land Reclamation program, and made numerous revisions in procedures. Besides bringing new land into cultivation a program for improving 8?7?0«000 acres of present cultivated land by proper drainage, irrigation and flood control was undertaken. The whole development program has as a goal an eventual increase of 2? percent in the cultivated acreage of Japan and the establishment of a million new farms• Since the beginning of the Occupation approximately 500,000 acres of land have already been reclaimed for cultivation. This is more than half the land reclaimed between 1910 and 1939• During^the first year of the Occupation, SCAP experts investigated the possibilities -for increasing pasture and forage utilization to Increase live- stock production, and started a reconnaissance soil survey project to be used as a basis for future agricultural planning* At the beginning of the second year of the Occupation arrange- ments were completed for Japanese whalers to participate In Antarctic whaling for the first time since Japan1s entry into the war. The expedition made up of twenty-one vessels owned by two fishing companies, was authorized by SCAP directive on August 6, 1946 as an emergency measure, to increase Japan1s meager food supply by vitally needed proteins* Two SOAP representatives accompanied the fleets as observers to insure compliance with, prescribed regulations. In.approximately four months of whaling operations in the the expedition returned to Japan with a total of 1,175 whales. These provided over 21,000 metric.tons of salted and frozen neat* and 50 tons of salted livers for dis- tribution to the Japanese people, the equivalent in food value of approximately 40,000 tons -of wheat. It also provided 12,000 tons of whale -oil. and 11 tons of vitamin A and D which is in short supply all over the world, and worth six million dollars in foreign exchange.. A second Antarctic .whaling expedition authorized on June 21, 1947 by the Supreme Commander pursuant to instructions from the United States government is now being organized. The second year of the Occupation brought Japan1s downtrodden tenant farmers one step-closer t*c freedom from the economic bondage of a feudalistic agrarian system. The first assault on this system came on December 9* 1945, when SCAP directed the Japanese govern- ment to undertake a program of agrarian reform which would redis- tribute the lend equally among Japan1 s fivemand a half million '■ farm families. The program was translated from plan to reality with the promulgation of the Land Reform Law bn October 21. 1946,, drawn up by Japanese legislators in response to the directive. The mein objectives, of the: Law are to transfer land ownership to those who actually till the soil, remove the yoke of high rents and* improve the conditions of tenancy for those farmers who will - continue to rent the land they cultivate. ’These to be accomplished through purchase by the government of from 70to 80 percent of the tenant cultivated land of Japan for resale to tenant farmers within a two-year period ending December 31. 1948. Some five million acres of land, or one third of all Japan*s farm lands will be involved in the transfer. Compensation of the land- owners is at legally established price levels. Resale of the land to tenant cultivators after consolidation into economic farm units will be at the same prices. Tenant payments may be made in equal annual installments over a 24-year period, will'never exceed one third of:the gross income of the land, and may be reduced, delayed or cancelled by the.government in case of crop failure or a drop in farm prices. ' In accordance with provisions of the law, every immediate member over 20 years of age of farm families owning or cultivating one or more tan (.245 acres) of land was registered in categories of owner, owner-cultivator or tenant by November 30, 1946, 24 Responsibility, for adiiinisterihg the purchase program,rests with the; local and prefectural. land, commissions democratically elected by and'fron, among Japan*s farmers. The local land com- missions, made up - of five tenants, three owners and two owner- cultivators, were elected on December 31* 1946. The prefectural lend commissions, made up in parallel ratio, were elected by and from among members of the local land commissions on February 25, 1947; The Central-Land Commission, which decides on broad policies, was appointed by the Cabinet on March 26,- 1947. As provided by law, .farmers dissatisfied with the actions of 'their representatives on the commissions may petition for their removal and schedule recall elections. The number of recall elec- tions of rural land commissioners throughout Japan (1100) resulting from tenant demands for.more effective action is an indication*of the increasing awareness on the part of the most downtrodden elements of the Japanese agrarian population. The program is now in full swing. The overall purchase plan for the transfer of land from landlords to tenant farmers provides for periodic purchases at fixed dates Within the two-year period. The first 1ana purchase date was set for March 31, 1947, at which time 129,000 cho of land were bought by the local commissions. The second occurred July 2, 1947* and brought about the purchase of a total of approximately 219,000 cho. These two purchases have exceeded by almost 50.000 cho the goal set by the Japanese govern- ment for purchase to date. Also available for resale to tenants are the 193*603 cho of land turned over to the government by landowners in lieu of cash tax payments. The total of 541,889 cho amounts to more than one third of all the land estimated to be available for purchase and resale by the land commissions to the tenant farmers. To accomplish the maximum consolidation without disturbing production,government acquisition of the land has been expedited while resale to the tenants has been deferred.’ The first sale of lands to tenant purchasers, however,.has already begun during the month of July. In many cases, the actual transfer of land to* tenants will be a technicality, since tenant-purchasers will bid to buy the land they are already cultivating. The task of altering the basic structure of Japan*s agrarian economy requires%more than the creation of. the administrative machinery of reform. It-entails also the re-education of the great mass,of Japanese farmers as to their newly acquired democratic rights and privileges. In order to set the rural lahd reform program in motion, and to insure its effective accomplishment, the Japanese Ministry of Agriculture, with the assistance and encouragement of SCAP has launched an extensive campaign of education on land reform through the press. 25 TWO YEARS 0 F OCCUPATION REPARATIONS 1. First Year1s Work - The preparatory work for reparations removals-which was accomplished during the first year of the occupation consisted largely of inventorying metalworking equip- ment in arsenals and aircraft plants. This was performed ,by the Reparations Branch in the Economic and Scientific Section* General Headquarters, Supreme Commander for the Allied. Powers, which was subsequently transferred and established separately as a Reparations Section. 2. Second Year!s Work - Host of the work'of this year has consisted of inventorying and evaluating a large proportion of the facilities taken into custody for reparations. 3. During the second year, all 11 member nations of the Far Eastern Commission established Reparations and Restitution Delegations under the operational control of the Supreme Commander to handle all reparations and restitution matters for their respective governments. 4-. In accordance with a directive from the United States Government, the Supreme Commander on 21 May 194-7 established the Reparations Technical Advisory Committee, consisting of the Chiefs of the respective Reparations and Restitution Delegations, and headed by the Chief of the Reparations Section, to assist him in an advisory capacity in the development of procedures for the orderly removal of reparations facilities. 5. -Towards the latter part of the second year, the United States Government announced an interim directive under provision of the terms of reference of the Far Eastern Commission, authorizing the Supreme Commander to make limited deliveries ox reparations goods to China, Philippines, the Netherlands (for the Netherlands East Indies), and to the United Kingdom (for Burma,. Malaya, and other Fair East colonial possessions). In accordance with-the interim (over) 26 Directive, the Supreme Commander on 9 July 194? announced the availability of metalworking equipment in Army and Navy arsenals and synthetic rubber plants which were to be allocated as soon as administratively possible. No allocations were made, however, by the end of the second year. 6. The complete Job of physical removal of reparations equipment is accordingly still to be accomplished. 27