Unrest in Japan

Press, Volume LXXXV, Issue 25859, 19 July 1949, Page 4

Unrest in Japan

The increasing unrest in Japan reported last week has not been caused solely by the Government’s initial proposal to dismiss 94,000 of its employees, in compliance with General MacArthur’s economy order. There has been nation-wide unrest ever since the Prime Minister (Mr Shigeru Yoshida) followed the advice of Mr Joseph Dodge, who was sent to Japan by the United States Government to advise General MacArthur on economic reconstruction. Mr Dodge recommended the Government te balance its budget by increasing taxation and reducing expenditure, particularly on subsidies, and to end inflation by a strict control of credit. Mr Yoshida’s “ austerity ” budget, introduced in April, produced an acute and sudden deflation of the economy. According to the “Economist”, the note circulation fell, investments of all kinds were heavily cut, subsidies to industry designed to cover the cost of maintaining redundant workers were reduced, and surplus officials were dismissed. The Government’s full, programme called for a cut of 750,000 in its own national and locpl payroll of 1,700,000 workers. Since then there have L ?en strikes of miners, metal workers, and transport workers. Many small and medium-sized business firms, threatened with bankruptcy, have accused the Government of favouring the big firms which it is supposed to have broken up. But the real trouble has come from the unions. Organised labour is now strongly to the left; and the Communists, who increased their representation in the last elections from four seats to 35, have gained control in a number of key unions. Encouraged by popular feeling that Mr Yoshida’s Government is reactionary in outlook, particularly on labour questions, they have carried on a campaign of complaint about every aspect of the nation’s economy, and are now encouraging and directing unrest. General MacArthur’s administration now faces the possibility of a serious clash between left and right extremists unless the ultra-conservative Democratic Liberal Government can cope with the situation. It is in a difficult position because Democratic Liberal leaders are unsympathetic to some of the occupation’s policies, and according to “ The Times ”, are trying to bring about a conservative national revival under cover of the new constitution. But, says “The “ Times ”, General MacArthur has shown before that he is prepared to intervene to frustrate any attempt, whether from right or left, to obstruct the progress of Allied policy, which is to teach the Japanese people to rule themselves in the democratic way.