740.00119 Control (Japan)/1–1746: Telegram

The Acting Political Adviser in Japan ( Atcheson ) to the Secretary of State

secret

42. A summary follows of political events from 10 to 16 January.

Reorganization of Cabinet. The political crisis of the past 10 days came to an anti-climactical end when Tsugita, Maeda, Tanaka, Matsumura, and Horikiri were replaced by the Premier. These men had been disqualified from holding public office by 4 January directives. The following replacements were also made: Home and Transportation Minister, Mitsuchi Chuzo; Benosei [apparent garble]49 and Soyejima Senpachi, Education and Agriculture Ministers; Chief Cabinet Secretary, Narahashi Wateru; as Director of the Cabinet Legislative Board, Ishiguro Takeshige succeeds Narahashi. It was stated by the Cabinet Secretary that Ogasawara and Matsumoto will stay in office unless there is objection by SCAP, in which case permission will be asked by the government to keep Matsumoto on the grounds of indispensability.

The decision of the Cabinet to reorganize rather than resign, and the character of the new appointments, has been a source of resentment and bitter disappointment to the press and all parties except the Progressives, although it was conceded by thinking persons that peculiar difficulties were presented by the formation of the government which would both be capable of taking decisive action for the [Page 113] solution of current problems, reform and livelihood, and would ensure impartial elections.

The newcomers, none with party affiliations, scored as oldline reactionary politician-bureaucrats, except for Abe, whose assignment was praised widely as a liberal educationalist and of reputation a stronger personality than Maeda.

It is reported that the President of the Kinki Railway Company, Oida Torao, is scheduled to soon succeed Mitsuchi in the Transportation post.

Government. The approval of the provisional Cabinet was given the draft ordinance which prohibits persons who were affected by the 4 January directives from holding public office, for submission to SCAP. Cases which are doubtful are to be decided by the Premier based on a special questionnaire which is filed under penalties for omission or falsification of as much as a 3,000 yen fine or one year at hard labor. On or soon after 15 March the Government plans to hold elections as authorized by SCAP, but doubt has been expressed by some observers whether the screening of candidates will be finished before the last part of February, which will make it necessary to postpone the date of elections until the last part of March. It was stated by Minister Matsumoto that preliminary investigations had been completed by the constitution revision committee and that the actual drafting has been started. Stipulated in the constitution revision bill will be the House of Peers ordinance revision bill, asking for the reduction of House members up to 303, of whom there would only be 30 Peers, calling for the elimination of high tax payers representative, and various other changes, which was favorably received on the assumption of more fundamental reforms, particularly the reduction of legislative powers of the Upper House.

As Household Minister, Ishiwata is succeeded by Viscount Matsu-daira Ishitomi. The publication of details of the war profits and property taxes proposed by the Government, with an expected 100,000,000,000 yen yield, brought out widespread demands that the collected funds not be utilized to redeem Government bonds or to meet indemnification claims for war losses, thereby accentuating the concentration of wealth rather than diminishing it. Its effectiveness as a curb on inflation is held quite reduced by its long term payment aspects.

On 31 December the note issue of the Bank of Japan amounted to 55,400,000,000. The rice crop for 1945 was established finally at 39,200,000 koku, 35.5% below the past 5 years average and the lowest since 1905. Up to 31 December deliveries amounted to 23% quota, compared with 42% for the same date in 1944 with reports being [Page 114] given out that the loss of confidence in the government during the political crisis had further retarded deliveries.

The Ministry of Agriculture decided on the maximum area of farming land to be permitted individual farmers under the reform bill which was recently enacted, ranging from 3.6 chobu in 6 of the more intensively cultivated prefectures to 19 chobu in Hokkaido. Effective 1 March as [an] increase in railway fares for passengers was approved by the Rates Commission at 2.5 times and for freight rates 3 times. 1,500,000 women and 1,700,000 men were shown as without jobs as of 1 December by an unemployment census taken by the Welfare Ministry, with many unemployed reportedly failing to announce they were without jobs for fear of possibly being drafted to mines, and other reasons.

It is reported that a new commodity price control plan is being prepared by the Ministry of Finance. The licensed (contract) system of prostitution in the Tokyo area was abolished by the metropolitan police.

[Here follows report on other subjects.]

Nosaka Sanzo (Sanji) was welcomed from China enthusiastically by the Communist [leaders?] who issued with Nosaka a joint statement which substantially modified the stand taken by the party on the issue of the Emperor and cooperation with the other parties. Called for in the statement were (a) abolition of the Emperor system as a state institution; (b) should the people so decide, the retention of the Imperial household as an object of popular sentiment and for decorative purposes; and (c) the setting up of a “Democratic Front” by all groups’ or parties’ democratic elements, with each at liberty to keep its particular viewpoint.

The spokesman for the Socialists welcomed the statement as he noted that the new stand on the issue of the Emperor was a close approach to the views of the Socialists. Some observers expect that Nosaka, who has a wide following and acquaintanceship among the non-Communists, and whom the party plans to enter in the coming elections as a candidate, will exert an influence of restraint on the tactics and policies of the Communists which, without increasing necessarily the Communist Party’s strength as such, may assist materially the setting up eventually of an effective popular front. The purged leader of the Progressive Party, Tsujumi Yusuke, was reported to have stated that by no means have he and other disqualified Progressives renounced all ambitions politically, and that until an opportunity is presented for a comeback, they intended to devote their time to farming, business, or journalism and to guiding younger men to aspire to political posts.

Repeated to Moscow and Chungking.

Atcheson
  1. Yoshishige Abe became Japanese Minister of Education.