Macarthur’s November 1, 1945 speech (37); “…to this end shall be the policy for the dissolution of the large industrial and banking combination which have exercised control over Japans trade and industry.”
-eager to demonstrate value of democracy by encouraging diffusion of wealth, political and economic power.
-Japanese govt submits “Yasuda Plan” which under the holding companies of the Big Four (Mitsui, Mitsubishi, Sumitomo, yasda) would begin dissolution proceedings.
-Japan strategically important to US against communist expansion, could not stand to have a weak and feeble Japan.
-Nine Point stabilization plan of 1945enacted economic reforms, in accordance with these reforms, restrictions on passenger vehicles was relaxed to 300 annually and then removed entirely in oct 25, 1949.
- bleak situation for auto industry post-ww2=distorted management-“amount of investment 1952 twice what it had been previous year, 1953 was 2.5 times that of 1952.
-two laws encouraged investment in equipment= Property Revaluation law of April 1950 and law of promotion of rationalization of enterprises mach 1952. (pg 44 for details)
-“Operation Roll-up” was the program for recovery and rehabilitation of ww2 equipment abandoned in pacific by demobilization.
-provided important source of domestic employment during Korean war, providing 30,00 jobs by 1951.
*-history of Japanese industry closely linked with technology of the US industry.
-technological gap massive after ww2.
-however, transfer of American technology through American military forces was crucial for restoration.
-during occupation and Korean war Japanese engineers, mechanics, and laborers gained experience with American production layout, methods, new techniques, and experience with American ingenuity in dealing with scarcity of motor vehicle parts.
Government Postwar Policy
-Reconstruction Finance Bank, issued loans to auto manufacturers and all debts of these companies were transferred to guaranteed...