Evening star., 1949-05-27
Compare Occupation
Costs in Reich, Japan,
.2G.0.P. Senators Ask
sy me Asse<scssc sssss

INO rS6plDllCdl Ct1lAlUss CAA4FI
today for a congressional COM
parison Of American occupation
records in Germany and Japan
Senators Bridges Of New Ham
shire and Ferguson OF Michigan
said they viii ask the Senate Ap-
propriations Committee TO stack
against the situation in Germany.
Gen. Macarthur claim that
Japan has made a greater eco
nomic comeback than any Euro
pean nation.
Gen. Macarthur said in re-
cital Of occupation accomplish
ments- for Fortune magazine that
Japan's exports are showing a
three fold gain since ls47.
Gen. MacArthur's views were
published by Fortune in response
to an article previously published
by the magazine entitled the
Two Billion Dollar Failure in
Japan"
Sees Greater Relative Gain.
Without direct American aid for
rebuilding industries. he said. ia
pan has boosted its output pro-
portionately more than Poland.
the Netherlands. France, CZecho-
slovakia and Britain.
He added that Japan's recovery.
despite the fact that its people
have been forced to rely largely
on their own resources for reha-
bilitation. compares favoraoly
with that Of Germany.
He said production gained 100
per cent in two years up to the
end OF l948, compared with 1873
per cent in Germany and 20 per
cent in Britain.
Senator Ferguson said that
since the aim Of the American aid
given to foreign countries Is re-
covery, "it will be interesting to
compare what has been accom-
plished In Germany with what
Gen. Macarthur says has been
done in Japan"
Imitation Called Unavoidable.
Gen. Macarthur said there has
been some unavoidable" imitation
in Japan. but added that 1t has
not reached the runaway stage.
He said that government
agencies and private enterprises
follow a divide the-work policy.
adding:
1T may have been the means OF
preserving the capitalist structure
in Japan. Certainly it has been
the means of avoiding the unrest
inevitable to mass unemployment" !"
The rise of trade unionism with
occupation announcement was
cited by Gen. Macarthur as a
factor in the growth of the post
war export trade.
"Prewar competition offered In
world markets by cheap Japanese
goods based on underpaid labor
was a source of continuing resent
ment and complaint in other
countries" he said.
For the first time In history. a
proper balance is being effected
between labor and capital in the
Japanese economy and the Japa-
nese exporters must find their
markets on a more truly competi-
tive basis
Lists Accomplishments.
In a detailed recital of occupa-
ton accomplishments he makes
these points: t-v r~s-a q
~ /. Japan has received only one
fourth as much American aid as
Germany. per capita. While the
United States has helped rebuild
German industry. Gen. Mac
Arthur was expressly ordered by
the American Government in 1945
to require the Japanese to rely
on their own resources for
recovery.
2. The occupation entered new
phase last year when restoring
Japan's self-support became an
avowed occupation objective. The
original major aims of the Pacific
allies-to disarm the japanese.
create democratic institutions, and
put into effect social and eco
nomic reforms-were realized two
years ago.
3. Imitation was unavoidable"
but has not approached the run
away stage. The government is
striking now at the cause with
economy measures and credit con-
trolls.
4. Japan's recovery. far from
being the worlds lowest. COM
pares favorably with that of
European nations. Production
output gained 100 per cent in two
years up to the end Of 1948 COM
pared with 1873 per cent in Ger
many and only 20 per cent in
Britain. Exports are expected to
exceed $425 100000 in the year
ending June 80 compared with
$I03. .000. 900 in 1946.