Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-09-28

serve the new competitive system.
Critics of the plan argued that 1t
was impossible to convert an econ
omy in less than a generation. The
occupation lasted neither gen.
Grafton nor q decade. Obviously,
Japan has not been converted to
the new system.
A special dispatch from Tokyo
to the State Department says that
Japanese industrial and financial
representatives take the position
that anti-monopoly measures are
a nuisance. 1t adds that the Min
istry of International Trade and
Industry representatives disagree
as to whether industry should be
given free hand or whether MTTT
should determine what cartels
should be permitted and how they
should operate. The dispatch also
declares that industrialistS and
MITT believe that cartels must be
formed to strengthen Japan's COM
petitive position in overseas
markets.
Influence Of CurteIs
Here is a direct quotation from
a translation of a MITI white
paper on Japanese industry: 'Un-
der the influence left by the cartel
system which had governed the
japanese economy during and be-
fore the war, Japanese industries
are quite accustomed to the eco
nomic control.
I'm the case of Japan with lin
tied natural resources, with sur
plus labor forces and with excess
sive number of enterprises, the
unconditional application of the
anti-monopoly law would most
likely preclude the national Jewel
opment Of the economy"
The exact extent Of the zai-
batsu resurgence and the reversion
to industrial combines is difficult
to determine for several reasons.
First, the japanese are accus-
toned to making many of their
business agreements verbally only.
This has been satisfactory to the
Japanese for hundreds Of years. 1t
is irksome to Americans, however,
who find it difficult to prove any,
thing that isn't written.
A State Department confiden-
tial report which detailed plans
for the Zaibatsu breakup ex-
planned: Extensions of ZaibatSu
control without commensurate
financial investment are so COM
mon as to constitute an important
part Of the total, but they seem to
depend so largely upon custom,
verbal understanding, prestige and
similar imponderables as to make
an objective determination Of con-
troll difficult and frequently i'm
possible"
Absentee Control
A further complicating factor is
that few of the Zaibatsu family
heads ran their businesses person.
ally. They had competent execu-
tives do it for them. Frequently
no one can tell for sure the extent
Of the executives connection with
the former ZaibatSu.
Second, officials in the State and
Commerce Departments don't like
to talk about the Zaibatsu. They
don't think it helps Japanese
American relations. It also could
be because the mere mention Of
"Zaibatsu" reminds the Japanese
that the Americans labelled them
war lords.
From the fragmentary informa-
ton available, 1t is possible to
piece together something about
the big three Of the Zaibatsu, Nit
subishi. Mitsui and Sumitomo,
Because of the reluctance Of
United States officials to discuss
the Zaibatsu. most of the current
information comes from the Jap
anese themselves The bulk Of 1t
is contained in a book recently
published by the Mitsubishi Eco
nomic Research Institute of Toxic
titled, ''Mitsui. Mitsubishi and Su-
mitomo," and subtitled Present
Status of the Former Zaibatsu En-
terprises." The information on the
former status comes from a report
made to the United States State
and War Departments at the end
Of the war by Corwin D. Edwards,