LUXURY SPENDING IN JAPAN TO CEASE

Rotorua Morning Post, Issue 5317, 1 February 1947, Page 2

LUXURY SPENDING IN JAPAN TO CEASE

W 1 > AMERICAN ORGY CLUBS AND REST CENTRES COSTl|NIG M1LLIONS. General MacArthuir's headquarters apparently intends to follow through its order clamping down on the last 16 months' orgy of luxury spending byi the Antericanj forces in Japan, writes a staff correspondent in the Sydney Morning Herald. A section of the Occupation forces at the cost of the Japanese Govern--ment, has been living on an Aladdinlike scale, ?using procurement orders. (In the new order dated January '2, Major-General P. J. Mueller, Chief-of-Staff of the General' Staff Corps, ordered section chiefs to submit full details of any new construction, rehahilitation or alterations. Other orders will halt the expenditure of niillions of yen on new luxury undertakings not completed by the

middle of January. Wlhile the American forces have already completed a ehain of luxury ihotels, rest centres, stadiums, cluhs, cinemas and theatres throughput Japan on the 'understanding that tl|ey would cost the Allies nothing, the new orders will curtail (unless an exception i§ made) the more austere British f plans, which have just ibeen started, for the provision of clubs and leave centres for troops of the British Cojnmonwealth 'Occupation Forces. B.C.O.F. troops, as the Australian Minister, Mr. Chamhers, recently learned at first hand, cannot use the opulent chajn «of A^nericah luxury ihotels, where the dollar is legal ten-der. Those American hotels which have been completed will not come under the new guillotine orders. Although Supreme Headquarters is reluctant to divulge vital statistics, and one officer v/as sacked for talking to the Press, here is an nnofficial estimate of the spending on some luxury projects which are available to Americans only: — • Reconstruction and refurbishmg ■ oi one American post exchange (canteen), 120,000,000 yen (£stg.2, 000,000 at the peggeff rate >of '60 yen to the £stg.). ^Road and other directory signs m English throughout Japan. About 170, 000,000' yen (over £stg.2,800,000).

Signs of the Times. On one post I counted 26 signs, in- . cluding directions to an ice-cream f ac- : tory and a Coca 'Cola refflling depot. Outside the headquarters of the • Allied Oouncil for Japan the sign ; "Allied Council for Japan" is about one-eighth the size of that for P.A.C.U.S.A. (Pacific Air Command, United States Army),. which shares the same huilding. j. Along the roads are conlpetitive neonised signs advertising American

units. , , A Japanese banker, who iknows hov , Japanese ffnanciers are thinking, saicl that the cost of the Occupation will eat up at least 80 per cent. of Japan s nqtional revenue during the past yoar. Japanese contractors— the new Zaibatsu, hattening on th Occupation— - have been- giving parties costmg 200,00 yen (over £stg.3000). According to the latest Supreme Headquarters' report the note circulation of the Banlc of Japan had reaehed rnore than 70i hillion yen on October 3'1 last, show an average daily increase of 1*98,00 0,0'00 ye.since September 30, 1946. Jf the plans of Mr. E'dwin Pauley President Truman's reparations ve presetnative, are implemented, the following Japanese preciious metals will he made available as a first charge against the cost of occupation: Gold, about 205,000,000 dollars; silver, about 46,000,000 dols.; platmom. about 256,000,000 dollars. High officials at iSupreme Headquarters in Tokio expect an Allied reparations showdown any time nov/. An> proposals, of course, will 'have to ■ suhmitted to the Far Eastern Commis sion for review. Headquarters's oi ficials are most anxious to avoid a position in which the Allies will hav.to pay Japan for the privilege o occupying the country in ordei 1 - implement the terms of the Potsdan.

Declaration. Reparations Demands. China desires about 30* per cent. oJapan's heavy industries, includinii much hydro-electric gear. Holland wants aboat 7,000,000* do - lars, principally against losses in I" donesia. , France has suhmitted a list totai ling 2,000,000 dollars. The Philippines, supported hy thcUnited States, wants as much 'heavy

industry as she can get. Rather than see the Japanese economy ruined the United Kingdom, il is believed, would sooner see Japan retain a large proportion of the industries previously earmarlced for export to the claimant nations. Australia, New Zealand, 'Canada and India have not finally decided what they require, *but- it is understood that Australia desires a share of the textile machinery and whaling fleet, New Zealand a number of coastal vessels, and India certain steel and textile mills. Other claimants include . Korea, Outer Mongolia, Mexico, Greece, Norway, Italy and Portugal. Russia so far is opposed to the Allied Reparations Conference. It is believed that the United States;, will not seek any industrial reparations. Because of Japan'® war-torn economy, much attention is iheing . devoted; to the British and American point of view-r-that unles Japan . is permitted to retain sufficient industry to manufacture exports in order fco maintain ;herself . she will finally hit the. poclkets .of American and British Commonwealth taxpayers, who comprise the only nations supplying ' the occupation troops. ■ —i mmmm — w— — mm