BALANCED ECONOMY PROPOSED FOR JAPAN

Wanganui Chronicle, 31 October 1946, Page 6

BALANCED ECONOMY PROPOSED FOR JAPAN

London, Oct. 28. Replying to questions in the House of Commons regarding the future of Japanese textile, industries, the President of the Board of Trade (Sir Stafford Cripps) said the reductions in Japanese heavy industries, aimed at rendering Japan incapable of waging war, would result in reductions in other consequential industries so as to leave Japan with a balanced economy. Sir .Stafford added that all Japanese physical and economic assets abroad would be taken away, and all surplus equipment released by these operations would be available as reparations to those countries which suffered Japanese aggression. It would also be the Government's policy to eliminate low-priced, unfair Japanese competition, but he added that to keep Japan internationally solvent it was necessary that she should export. She could do this by concentrating on her lighter industries, including textiles. In reply to a further question, Sir Stafford stated that it was not intended at present to impose any particular wage standards in Japan. It was intended, however, to try to develop the Japanese Government along lines on which they themselves would impose such conditions. Asked whether it was intended to allow Japan to resume the export of textiles before anything was done to raise wage standards, Sir Stafford replied that there was a great dearth of textiles in the Far East which could be supplied only by the Japanese.