PLAN FOR JAPAN

Otago Daily Times, Issue 26853, 18 August 1948, Page 4

PLAN FOR JAPAN

Some eighteen months ago the new Japanese Constitution was put into effect. It will come before the Diet within thq next year for revision if necessary—but. broadly speaking it is to be regarded as the blue-print of Japan’s political future. What may become the economic blue-print is the draft of the Five-year Plan for restoring Japanese economy to approximately the levels of 1930-34 which is now being considered by the Japanese Government. This report has been' prepared by the Economic Rehabilitation Planning Committee of the Government, and it has been drawn up with the assistance and encouragement of Allied headquarters. A recent report by the Tokio correspondent of The Times states that it is hoped

by the sponsors that the plan will * v ;be put into effect in a few months, but he makes the enlightening comment that the Japanese people remain unconvinced by it and for the . most part dismiss it as another of the “ paper plans ” which the Government issues from time to time for the purpose of convincing the occupation authorities of its good intentions. One« reason for this scepticism js said to be the Government’s failure to take any steps to control inflation or to stabilise

x prices and wages—fundamental 7'matters which require urgent atten--tion. Certainly it would seem to be unrealistic to . attempt to implement a plan which can be carried out only through external trade and . with external assistance until internal economic conditions have been stabilised. Although the plan aims at restoring standards of living and general industrial production to those of fifteen years ago, the expected rise .-.in the total population is such that the national income will have to be raised 121. per cent, above the aver- ‘ age of the earlier period. The supply of foodstuffs-is not expected to keep pace with the demand so. : that industry will have to produce goods which can be exchanged for - goods. These export goods wil., consist of- textiles, machinery, chemicals and earthenware. It is hoped , that the whole of the capital required for this industrial drive -will be made available by the l. United States Government. British industry will watch with interest this proposed re-entry of • Japan as a serious competitor in '‘ world textile markets, but a more . gerious attention should be given to the proposed development of secondary war industries. The Allies have already agreed, under American persuasion, to raise the permitted levels of production in heavy industries, but it would appear that something much more extensive than this is planned. The ; imminence of such important de- % velopments as are projected iif this e Five-year Plan should stinwfete an ... n appreciation of the urgency for the Allied Powers to come together to - discuss Japan’s future.