Evening star., 1950-12-31
Japan Makes Headway
Moves Toward SeIf-Sustainine Economy
As Industry and Trode Stoee Comeback
By Doyid Bellies

d Bellies
well as its principal benefactor
/ Between September, 1945, anc
December, 1916, for example, the
total value of japanese imports
was $305 million and the tota
value of Japanese exports wa.
$103 million. Japanese import.
from the United States In thi.
period were worth $297 million
and Japanese exports to this
country were worth SIT million
During 1947, the total value oi
Japanese imports and exports was
respectively, $526 million anc
$173 million. The value of Japan's
imports from and exports to the
United States was $483 million an6
$40 million. During 1949, the totaI
value of Japanese imports was
1888 million and the total value
of their exports was $50 million
Japan bought from the United
States during this period goods
worth $50 million and sold tc
this country goods worth $83 mil
lion.
Transactions Supervised
Japan has been able to carry
on so big a trade with the United
States principally because of the
aid we have given her since World
War II for the purchase Of food
and raw materials. Without this
income that country would be
able neither to live nor maintain
modern, industrialized economy
Since September, 1945, for ex-
ample. Congress has appropriated
for economic aid to Japan about
$1A billion. In the last few years
We have also spent several million
dollars on providing technical and
other advice regarding foreign
trade problems, and on sending
abroad selected groups of busi-
nessmen to develop trading pos
sibilities with other countries.
Because of the large amount OF
aid that Japan has been receiv-
ing from the United States, all
business transactions between the
Japanese and other nations have
until lately, been carefully super
vised and controlled by soap. In
keeping with directives issued un-
der this program, foreign trade
between September, 1945, and
August, 1947, was carried on on q
strictly government . to govern
ment basis, and between August,
1947, and December, 1949, while
a certain amount of private trade
was permitted. most of the re-
strictions that were originally i'm
posed were kept in force. Since
January, 1850, however, when a
special directive on Japanese COM
merce was issued, foreign trade,
with the exception of imports OBJ
tanned with United States-appro-
priated funds, has been conducted
solely by private firms.
AS was doubtless inevitable, the
value Of japanese exports since
1945 has been far less than that
of Japanese imports, though the
size of the figures for both ex-
ports and imports has grown in
creasingly larger. Exports be-
tween September, 1945, and De-
cember, 1916, for example, were
worth $103 million and imports
totaled $305 million. During
1947, exports were STA million,
importss 1926 million. Two years
later. the figures were, respec-
lively, $50 million and $911 mil
lion.
The situation japanese for
eign trade now Is in has given
American occupation officials a
good deal to worry about in recent
months. Beginning with the Dodge
mission in 1949 lheaded by Joseph
Dodge, a Detroit banker, soap
has made serious efforts to in
crease exports while at the same
time overhauling japanese eco
nomic life in such a way that the
fantastic inefhciencies that had
existed right after the war would
be eliminated, or reduced to a
minimum. Industrial production,
however, is still not as great as it
was in the prewar period and costs
are still much too high. During
the last few months both retail
and wholesale prices. have been
higher than at any time in over a
year. reversing a trend that had
been set in motion soon after
Dodge submitted to Gen. Mac
Arthur his recommendations for
Strengthening out the Japanese
economy.
Problem of Balance
In addition to carrying out
most of Dodge's proposals, occupa-
ton officials have done number
of other things to increase the
amount of Japanese-made goods
sold abroad, such as encouraging
improvement in the quality of ex-
port products and allowing the
establishment of Japanese gov
ernment trade promotion agencies
in a number of foreign countries.
But at the moment the Korean
war is being counted on to pro-
vide at least a partial solution to
the problem of Japan's unfavor-
able balance of trade. The reason
for this particular development is
that during the last few months
the conflict between the u. N.
forces and the North Koreans and
their Chinese Communist allies
has resulted in a record breaking
demand for Japanese industrial
and agricultural products, ranging