Evening star., 1950-12-31

Japan is making notable progress
toward becoming a self-sustaining
e, nomy, though it will undoubt-
&c continue to require financial
assistance from the United States
fo- some time to come.
In the last six months-that is,
since the start of hostilities in the
Korean peninsula--Japanese in
dustrial production and foreign
trade have both risen to points
we'll above the previous postwar
highs. while Japanese shipping
has begun to revive from the dold-
runs it has been in since the
end of the Pacific phase of World
War II.
All is not rosy with the Japa-
nese, of course. Several weeks
ago, the Chinese Communists i'm
posed a ban on all exports to
Japan and the United States,
thus depriving the Japanese espe-
cially of a number of essential
products. Last November, SOAP
(supreme commander for the Al
lied Forcesl had the japanese
government place on its list of
exports requiring special licensing
such items as industrial nitrate,
vacuum pumps. caustic soda and
various iron and steel products,
many of which were being sold to
Communist China in large quanti-
ties. In the last few months, the
prices of numerous items imported
by Japan from various parts of
the world have undergone consid-
cradle increases.
Of all the developments recent
1y affecting the japanese econ
omy, however, possibly one of the
most important has been the
virtual cessation of trade between
Japan and Communist China.
For, ever since the Japanese be-
gan industrializing their country
in the 10Th century. China has
been one of the main sources of
their raw materials and at the
same time one of the best mar
kets for their products. In the
1S30s. China plus Manchuria
bought from and sold to Japan
more goods than did any other
country in the world. In 1899,
two years before Japan became
involved in war with the United
States, occupied China, Manchu-
kuo and the Kwantung Leased
Territory "a part of Manchukuo
leased by the japanese about go
years ago) purchased from Japan
products worth $454 million and
sold to that country goods worth
$l78 million, while the rest of the
world bought only $475 million
worth of japanese exports and
was responsible for $581 million
worth of japanese imports.
u. S. Best Customer
AS was to be expected, trade be-
tween Japan and China since the
end of World War II has been
only fraction of what it was in
the prewar period. but, until the
recent severance of almost all
economic relations, the exchange
of goods between the two coun-
Itries was still an important factor
In their respective economies. AS
an example of the significance of
this trade. China in 1948 sold to
Japan $25 million worth of food
sstuffs and raw materials, or more
than did any other country be-
sides the United States, Cuba,
India and Pakistan. In 1949, when
the Chinese mainland came under
Communist control and Formosa
became the last bit of territory oc-
cupied by the Chinese National
lists, China proper exported to
Japan products valued at $22 mil
lion, or more than any other coun-
try besides the United States.
India, PakiStan and Australia.
(Formosa in 1949 sold to Japan
goods valued at $23 million and
bought from that country pro-
ducts worth SO million)
The greatest portion of Japan's
foreign trade since the war, of
course, has been with the United
States, which is the chief occu-
pYinR force in that cn1,r,tru ar