THE OTAGO DAILY TIMES FRIDAY, MAY 27, 1949. FUTURE FOR JAPAN

Otago Daily Times, Issue 27091, 27 May 1949, Page 4

THE OTAGO DAILY TIMES FRIDAY, MAY 27, 1949. FUTURE FOR JAPAN

To a degree the history of occupation in Japan and Germany has been along parallel lines. At first emphasis was laid on military security. This was natural under military administration, but public opinion also supported the policy. As the meaning of occupation made itself apparent in terms of cash, the importance of economic reconstruction was more greatly appreciated by the controlling Powers and, as the Communist wave swept on and on, it came to be understood also that the task had its political implications. In Germany to-day the economic and political aspects are considered to be at least equal in importance to military security, but in Japan, where American views have not to be moderated to the same extent to suit British and French opinion, the tendency is to relegate military aims to a secondary position. A report which was recently received from the United States quoted “ authoritative sources ” in Washington to the effect that the United States is determined to push strongly ahead with its plans for the economic rehabilitation of Japan in spite of some doubts and objections by other Allied Powers in the Pacific. This recalls the sensation created in February by the alleged statement of the United States Secretary for the Army, Mr Kenneth Royall, that, in view of the changed situation in China, Japan might not be worth | defending. This statement was hurriedly, and confusingly, both denied and qualified. Whatever the truth was it may not be irrelevant that the theme of Mr Royall’s previous speeches in Japan had been that. Communism could be best fought by raising the living standards of the people and establishing a sound economy. The incident is, however, considered to have had important results in shaking the complacent faith of some Japanese that America would continue to foot the bill for defence and fehabilitation. A few weeks later, in March, the Japanese Government received complaints from General MacArthur’s financial adviser about “irrational and unrealistic” policies. Instead of concentrating on production, it was stated,The Government was depending for the solution of its problems on foreign aid, internal subsidies, and wage and price increases—sure roads to inflation and national disaster. Constructive internal action was urged to make the country self-supporting and to end all dependence on United States aid. The fact that social unrest in China has nullified American attempts to influence the situation there by semi-military aid may have played some part in producing this new emphasis. References have also been made in the American press to the lessons of India and the Philippines, where social movements decided the course of history. Whatever the reasons, this policy has an importance which must be taken note of by the British Commonwealth countries. The growth of Japan’s ability to export cottons, cheap woollens, rayons and pottery —to quote only some lines—has already given concern to United Kingdom manufacturers and the Cotton Board is attempting to arrange a joint Anglo-American mission to plan Japan’s role in the international cotton trade. More will have to be attempted along these lines. There is also the matter of the defence of the Pacific, a subject to which we have adverted on several Occasions recently. PETROL RATIONING Representations for the removal of petrol rationing have recently received slightly more encouraging answers. A few days ago the Oil Fuel Controller stated that a general restoration of the 10 per cent, reduction made last year is now “ under consideration.” Perhaps even more encouraging was the report that the Minister of Supply had informed a deputation that he favoured the abolition of rationing, and the impression was given that consultations to this end were in progress with the British Government. The continuance of the petrol rationing system appears to be merely another example of the reluctance of the authorities to stop the machinery of control once it has been set in motion. Certainly there seems little reason for it when motorists have little difficulty in obtaining petrol over and above their ration. The present aim would appear to be to check the rising fuel consumption rather than to operate a strict rationing, but it can be doubted whether there would be any great increase—apart from normal expansion—if the control were lifted. Two reasons for rationing which were valid perhaps even a year ago—the shortage of supply and the shortage of tankers —are no longer applicable to the same extent. Rationing was at first instituted because of the war-time temporary world shortage in supply, and since ,the war it has been continued as a dollar-eaming device to aid Great Britain, but as the process is advanced of shifting the source of oil supply from the western hemisphere to the Middle East, it should be possible to relax the restrictions which were originally accepted by the dominions. The argument used by Mr Chifley when refusing to lift petrol rationing in Australia was the old one, and its validity is being gradually reduced.