JAPANESE INDUSTRY AND REPARATIONS

Gisborne Herald, Volume LXXV, Issue 22585, 13 March 1948, Page 4

JAPANESE INDUSTRY AND REPARATIONS

XT was hardly surprising to read this week that “a big row” is in prospect between the U.S. Army and the State Department on the Japanese reparations issue. In fact the row could extend beyond America’s jurisdiction altogether and directly involve the Far East Commission and other Powers if, as is recommended in the Strike Report released by the Secretary of the Army, Mr. Eoyall, . the scrapping of the present Allied policy on Japanese reparations is carried out and if Japanese key industries such as steel are rebuilt to levels higher than their war-time peak. Such a policy may appeal to that section of the American nation which sees no harm in raising Japan into a great industrial nation with a “controlled” war potential, but it will certainly conflict with a present Allied policy which aims to eliminate the war potential and rebuild Japan into a nation of consumer goods. The need to restore. Japanese prosperity through peaceful industries is widely recognised. Persistence with an economic blockade would be foolish and quite unpractical. But there will be many people, including Allied leaders, who will sense the perpetuation of a grave risk to the Far East if the militaristic elements in Japan, perhaps burning for revenge on their recent conquerors, have the sinews of war placed within their reach.

General MacArthur appears convinced that the years of occupation have induced among the Japanese a spiritual revolution which historians will compare with Magna Carta, the American Civil War, or the American War of Independence. But, while there are few associated with the occupation in Japan today who would deny that it has been militarily successful, there are many sceptics, including some of. the franker Japanese, who doubt the depth of the spiritual revolution. It will be for the peacemakers—and for them alone—to determine this depth. After the treaty the Administration should merely guide Japan along the road to democracy. It will be necessary for.the peace conference to take action to ensure that, some method is adopted whereby the present social and political reforms are continued, that the new democratic Constitution is implemented, and that provision is made for externa] review if future Japanese Governments “run off the rails.’’ The temptation to run off the rails might be too strong for some Japanese leaders to resist if war potential, even a controlled war potential, were put in their hands.