Evening star., 1948-12-19
Rights 10 Be Curbed
In Push for Stability,
Macarthur Tells Japs
BY Russell Brines
L.. A. A1e;>I~l H.

Macarthur told Japan today to pre-
pare for greater austerity and the
Temporary surrender" of some free
dorns In order to stabilize its econ
omy.
ANY attempt to delay or frus-
trate" the stabilization program de-
manded in Washington must be
curbed as menacing the general
welfare" he said in statement.
The statement was in a strong
letter to Prime Minister Shigeru
Yoshida placing on the latter the
responsibility for implementing the
stabilization program announced in
Washington Friday.
The program must be carried out,
Gen. Macarthur said, to form IAN
impregnable barrier against the evil
and destructive theological pres
sures" Of the left.
Japan will evolve a pattern OF
progressive stability for all Of strife
torn Asia to emulate" he added. |
IF they the Japanese people, do
not. Japan may perish"
Produces Crisis.
The new American big push" to
give Japan some economic stability
has produced one of the worst crisis
in more than three years of occupa-
ton.
Gen. Macarthur in one of the
strongest statements he has yet
made to the japanese emphasized
Theological" opposition would be
halted whether it came from the
extreme left or the extreme right.
Most japanese political parties
told newspapermen the Washington
program conceded with their plat
forms. Financiers and industrial
lists said they welcomed the
measures.
The Japanese press in editorials
praising Washington's move blamed
Japan's trouble on weak govern
ments."
9-Point Program Ordered.
The State and Army Departments
have ordered a tough nine-point
economic control program aimed atI
curhing imitation and increasing ex-
ports.
It includes tighter controls on
taxes, wages, prices, rationing and
foreign trade.
American officials on the scene
already have been attempting to
enforce wage ceilings against the &C
tive sabotage of nearly every Japa-
nese power group and against the
wishes of the bewildered japanese
public.
Crisis Is Psychological.
The crisis is psychological rather
than economic. It may well become
part of the enlarging struggle
against Communist infiltration,
which has been sharpened by Red
successes on the Asiatic mainland.
The issue is fundamental rigid
economic controls have brought
temporary stability to Japanese
living conditions, but cannot be
maintained unless wages also are
pegged.
For three years the japanese
government has refused to heed
occupation authorities requests for
wage ceilings.
This has been due both to labor'5
tncreased-and sometimes exag-
gerated-political strength, and to
power induStrialists' preference fort
subsidies rather than free enter-f
prise.
Now the japanese have been told
that future American aid will de-
pend on their compliance with new
orders that probably will be stronger
than past suggestions"
American Aid May Be Cut.
American aid appropriations may
be cut-or at least not increased to
the level the Japanese have hoped.
Against continued japanese gov
ernment apathy. occupation officials
have insisted all along that wage
increases be limited to those which
would not upset price structures or
require further government subsi-
dies. In other words, pay raises in
private industry must be financed
from profits. This means that both
labor and capital must work harder
and more efficiently.
Increases for some 5000 900 work.
ers for the partly socialized govern
ment must come from legitimate
budget revenues. Such practices as
year-end bonuses and retroactive
raises for the government payroll
must be eliminated because they
mean a continually unbalanced
budget.
Both policies have been repeated
ly stressed. Now they are to be
pressed firmly.