Evening star., 1945-11-25
japan
Continued From First Page

period not only dating from the
perfidious attack on Pearl Harbor |
but includes the period prior to that
date to the maximum extent pos
sible."
The directive blocked government
funds intended for payment of war
indemnities to Japanese Arms and
individuals, on which the govern
ment still owes approximately
so ,o00, 10000 yen. 1t gave the gov
ernment 30 days to recover all such
war indemnity payments, in excess
of 5000 yen. which have been made
since August Is.
The purpose of this freezing is to
assure that funds are kept available
for taxing purposes under the new
war ar-profits tax. At the same time ;,
the supreme commander said, efforts
would be made to permit the Japa-
nese farmer, laborer and small busi-
ness man to retain their legitimate
savings.
100 Pct. Tax on Industries.
Generally the tax program con-
templates 100 per cent war-profits
tax on all war industries and a
graduated tax up to 100 per cent
on all other corporations and indi-
viduals, supplemented by a gradu-
ated capital lazy up to at least
10 per cent.
The imperial household is in
cluded, since the directive specifies
that there must be no exemptions.
The recapture Of war profits and
the capital levy are expected to
yield well over 100000. 100000 yen
($6 $40 900, ,000), thus providing "the
financial basis for the re-organiza-
ton of government finances toward
peaceful ends"
| Gen. Macarthur described the di-
rective's termination Of all service
pensions as another major step
toward Tightening the deadweight
burden which japanese militarism
forced the rest of the country to
bear"
| Supreme headquarters estimated
that the abolition of military pen
sions would remove yearly burden
Of 1,500, 900, 900 yen.
| The Ministry of Finance informed
Supreme Allied Headquarters that
the government had assumed war
indemnity insurance liabilities to-
falling 56,5oo. 900 900 yen, of which
50,500, 100000 remains unpaid. OF
this total, war industries have claims
for 1880, 100000 yen, plus 12,600,-
100000 yen for war risk insurance
and 4,100, 600, 900 for cancellation Of
war contracts.
Statement Also Issued.
The broad purpose of Gen. Mac
Arthur's directive was outlined in
an accompanying statement which
said:
THE Japanese government al
ready is heavily In debt. New taxes
and antimilitary pension plans
should convince everybody else in
Japan. from the biggest industrialist
down to the man in the street, that
war does not pay.
"At the same time those who are
l going to be hit hardest are those
who made the greatest profits out
of Japanese aggressions, and the
overall plan is going to result In a
more equitable distribution Of wealth
than Japan has ever had.
1.-THE power of wealth of these
few big people Is being taxed a way
so that greater number of little
people can have a chance to run
their farms. get decent prices for
work in industry, get fair wage,
and enter business with less fear
OF monopoly controls Z" There is
a large share of war guilt among
those who will lose the most money.
"Outstanding Japanese govern
ment bond issues now total more
than 120,000000 1000 yen, with a
floating debt of another 10000, ,000,-
900 yen, not including contingent
liabilities. The continuation of un-
controlled government borrowing
and spending would be disastrous. -
Good Imports o. KID.
Meanwhile, hungry and bedrag-
gled Japan obtained permission
from Gen. Macarthur to import
food, cotton, petroleum and salt,
thus opening the way for revival
of its foreign trade.
/ Tempering this news, however,
was the disclosure by Kyodo News
.---AeoMnPPtkEETE