Following the Japanese invasion of Manchuria and the establishment of the puppet state of Manchukuo he led a team of bureaucrats from the Ministry of Finance to provide an infrastructure for finances for the new territory in July 1932. From 1937 he served as Vice Minister of Financial Affairs of Manchukuo. To this capacity he oversaw the creation and personally directed the State Opium Monopoly Bureau that spread the mass use of the narcotic firstly in Manchuria and then in China as a way to soften public resistance to the Japanese occupation and expansion while generating huge profits. Under his authority tens of thousands of hectares were taken over by the Japanese underworld and put under poppy production, while dozens of laboratories were built to convert opium tars into various grades of morphine and heroin; thus the economy of Manchuria became inextricably bound to hard drugs. His administrating success there, made Japan by 1935 the biggest narcotics' producer accounted for approximately three tons or 10% of the world's total supply of morphine and 37% of total heroin production. According to the testimony of General Ryukichi Tanaka before the International Military Tribunal of the Far East during his post in Manchuria the revenue derived from the opium and other narcotics traffic became the chief source of revenue income for the Manchukuo government. Part of the narcotics was exported to Japan where they were used by a subsidiary tobacco industry of Mitsui of Mitsui zaibatsu in the production of special marketed cigarettes for the Chinese market bearing the then popular in the Far East trademark "Golden Bat". Including small doses of opium on their mouthpiece, apart from generating millions of addicted victims increasing the breakdown of Chinese society it also generated colossal profits for the Japanese economy that (according to testimony at the Tokyo War Crimes trials of 1948), Japanese military calculated to 300 million prewar dollars annually.