894.50/4–2348
The Acting Political Adviser in Japan
(Sebald)
to the Secretary of
State
restricted
No. 243
Tokyo, April 23,
1948.
[Received May 3.]
Sir: As of possible interest to the
Department in connection with this Mission’s view that the economic
deconcentration program in Japan should be completed as a matter of
urgency, I have the honor to transmit as enclosures herewith copies
of certain self-explanatory papers prepared in the Antitrust and
Cartels Division.1 Other pertinent
papers were forwarded with the Mission’s despatch 126, February 27,
1948.2
Respectfully yours,
[Enclosure]
Recommendations Prepared by the Antitrust and
Cartels Division of SCAP in
Tokyo in March 1948
restricted
- 1.
- That the control of the Zaibatsu be eliminated and that
actions be taken to prevent the Zaibatsu from regaining
their control.
- 2.
- That domestic cartels, such as control associations be
eliminated and actions taken to prevent their
redevelopment.
- 3.
- That restrictive controls over private business, such as
unnecessary licensing and quota and inspection provisions,
be prohibited.
- 4.
- That ownership in private businesses be distributed widely
and that divestiture of government ownership in private
companies be accomplished quickly.
- 5.
- That excessive concentrations of economic power be
reorganized into independent companies quickly and without
impairing large-scale production efficiencies or hampering
the speedy economic recovery of Japan.
- 6.
- That anti-trust and anti-cartel legislation be
administered equitably so as to prevent unfair competition
and unreasonable restraints of trade.
- 7.
- That governmental restrictions, necessary for completing
the transition from Zaibatsu control to private-independent
ownership, be eliminated as promptly as possible and that
agencies and legislation needed for such transition be
eliminated as soon as the job is done.
- 8.
- That deconcentration increase the number of independent
sources of credit and number of independent producing and
distributing outlets, without establishing any maximum or
minimum sizes or numbers of such independent operations for
the future.
- 9.
- That liabilities of companies suffering war losses be
capitalized promptly so as to establish financially sound
companies.
- 10.
- That United Nations nationals, who were investors as of 7
December 1941, be restored their shares and given
opportunity to receive prompt adjustment of additional
claims and that all United Nations nationals be assured
equitable treatment with Japanese investors to extent of no
discriminatory legislation or governmental
administration.
- 11.
- That SCAP see to it that
the entire deconcentration program, which includes actions
which will establish a reasonable basis for freedom of
enterprise and competition without special privileges, is
administered efficiently, speedily, and to the advantage of
Japan’s economic recovery.
- 12.
- That public announcement from high authority be made of
the recommendations made herein and that such notice include
statement that examination of the actions taken and the
actions planned indicate that the present administration is
practical.
