Monday, Apr. 07, 1947

Needed: Absolution

The Japanese take the word "dear" literally, even at the start of a letter. Last week General MacArthur took care to begin his letter to Japan's Premier with a curt "Mr. Prime Minister."

The letter was as barren of endearments as the salutation. Shigeru Yoshida's Government, it said, had better take prompt steps to tighten Japan's economy and wipe out its black markets, or it could expect no help from the Allies.

As a victorious administrator of enemy territory and idealistic prophet of democracy, General MacArthur had long disclaimed any responsibility for Japan's economic welfare. But Allied policy had made it necessary to limit her foreign trade and shut off many of her vital materials. By last week Japan's currency had increased by almost 100 billion yen in a single year. Prices spiraled in an inflationary whirlwind that sucked living costs and wage demands high in its wake.

Again & again SCAP had told the Japanese Government to get rid of the Control Association system which perpetuated zaibatsu (big business) domination of the economy but had not been able to raise Japan's production above one-third of the 1930 level. Last week when, in the face of impending economic disaster, the rubbery Yoshida Government again evaded the Control Association issue, MacArthur even threatened to seek advice from the four-power Allied Control Council.

Said one august Control Councilor in surprise: "It's not advice that Japan needs now, but absolution."

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