Basic Purposes
Now that the fundamental national policy of establishing the Greater East Asiatic sphere of common prosperity, which aims at the construction of a new world order, has entered upon a new phase with the conclusion of the Three-Power Pact between Japan, Germany and Italy, the Government, at a recent session of the Cabinet Council, have decided on the Summary of the Programme for Economic Construction Embracing Japan, Manchoukuo and China, with a view to coping with new developments in the situation, and intend hereafter to carry out national policies consistently in conformity with that fundamental national purpose. The objective of the new policy is to realize unprecedented progress in the Greater East Asiatic sphere of common prosperity based upon a comprehensive economic development of the three countries, in accordance with a new outlook on the economic order.
The world economic system of free trade resting upon the basic assumption that peoples and nations everywhere can freely exchange goods is in the process of disintegration. Accordingly, the Japanese system is also called upon to reorganize on a new basis discarding the old structure which is dependent on the old order. In this reorganization, however, Japanese economy must be made a higher, broader and stronger structure, capable of leading the peoples of East Asia to improve their living conditions and to find their respective places in the new world order. What is meant here by "higher" is that the power of life in possession of our nation must be made to create a higher productivity; by "broader" is meant that the sphere of mutual economic dependence must be extended from that of Japan, Manchoukuo and China to that of Greater East Asia and must be firmly established, and by "stronger" is meant that impregnable economic strength able to meet any situation must be maintained by keeping the extent to which Japanese economy is dependent upon other countries to a minimum. To this end sufferings
attendant on efforts of renovation must be overcome internally and any pressures and threats from outside be repulsed, by uniting all the forces and resources of the nation and by a determined will. Thus a new East Asiatic economic order under Japanese leadership must be established within about ten years. In this East Asiatic order alone, the economic system not only of Manchoukuo and China but also of other countries of East Asia can be expected to improve and develop to the highest extent.
Essentials of Basic Principles
For the purpose of realizing the task of constructing a new East Asiatic order and thereby ensuring the lasting peace of the world, the processes of the renovation of her internal structure and of the enlargement and organization of her living sphere must be brought into perfect unity. Her basic economic policies must accordingly be established upon the organized planning of the three following processes :
1. Perfection of the reorganization of national economy. 2. Organization and strengthening of Japanese-Manchoukuo-Chinese economy. 3. Enlarged organization of the East Asiatic sphere of common prosperity.
Basic Lines of Policy
1. The objective of the programme for economic construction embracing Japan, Manchoukuo and China is to establish a self-supporting, self-sufficient economic structure within about ten years, in order to strengthen the position of East Asia in the world economy by accelerating the construction of the East Asiatic sphere of common prosperity. 2. Guiding principles on which Japan is to undertake the economic construction programme embracing the three countries lie in the promotion of the general welfare in an ideal state of co-existence and common prosperity through the unitary cooperation of the three countries, in accordance with the high and broad spirit of Hakko Itiu.1 3. In order to expedite the economic construction Japan will endeavour to uplift the morale of the nation, renovate the internal structure, augment national strength while rendering assistance to
1 The world as one family.
the economic reconstruction of Manchoukuo and China. For this purpose she will strive for the promotion of science and technique and undertake the development of pioneer industries. 4. Manchoukuo, being in an inseparable relationship with Japan, is expected to swiftly perfect and develop important basic industries. 5. China is expected to develop her resources and reconstruct her economic system in collaboration with Japan and Manchoukuo ; in particular, progress in communications and transport services, smooth exchange of goods, and development of essential industries and resources are called for. Thus she is expected to contribute to the establishment of the East Asiatic sphere of common prosperity. 6. With a view to adjusting and accelerating the organized planning of economic construction embracing Japan, Manchoukuo and China the administrative machinery relating thereto shall be speedily perfected.
Practical Policies
In view of the fact that Japan, Manchoukuo and China constitute the backbone of the East Asiatic sphere of common prosperity, having thereby the duty to regulate economic relations on the basis of their closest union, the government have decided on essential policies in respect to spheres of industrial activity, labour, finance and banking, exchange, and communications and transport covering the three countries.
Spheres of Industrial Activity
In determining spheres of industrial activity, the conditions peculiar to the three countries and their respective phases of economic development should be considered, thereby effecting decisions from the comprehensive point of view and treating them as an organic whole.
Viewed in that light, Japan should hereafter strive for the promotion of the highest type of precision industry as well as mechanical industry while endeavouring to develop basic industries, such as the heavy, chemical and mining industries.
Manchoukuo is expected to make an epoch-making advance in the mining industry and in electrical undertakings. For the development of her heavy and chemical industries Japan is prepared to offer necessary assistance.
China is expected to develop her mining and salt industries and
to undertake large-scale production of raw materials. Since her natural conditions afford much room for the development of heavy and chemical industries, progress along that line is also expected hereafter.
The development of light industries on the Continent must be greatly promoted. In this connection, it is necessary that Japan should readjust her light industries, particularly the fibre and miscellaneous industries. Their removal to the Continent must be seriously considered.
With regard to agriculture in Japan, measures will be taken for the improvement of various systems relating to land, renovation of farm management, betterment and security of the living of farmers and ensuring of the staple food of the people as well as the maintenance of definite numbers in the farm population. Measures will also be taken, in this connection, for the steady development of fishery enterprises and for the rationalization, utilization and conservation of forest resources.
With regard to agriculture in Manchuria, in view of the position of that area as a base for the supply of foodstuffs and fodder for Japan, Manchoukuo and China, and as the source of supply to the world of special agricultural products, the increase to the fullest extent of agricultural production is expected. For the purpose of this development, the migration of Japanese agricultural settlers will be facilitated. In respect to agriculture in China, efforts for the assurance of the staple food of the nation must be made. The increase of the production of cotton and other staples is also urgent.
Labour
In order to hold a predominant position in world economy, the place of labour and technique will become increasingly important. For this purpose, their structure in Japan must be radically revised. Moreover, labour power available in each of the East Asiatic countries and regions must be enabled to make its contribution to the improvement of the whole labour force, thereby maintaining the superiority of the East Asiatic sphere in world economy. With this in view Japan intends to perfect a new structure in labour and technique, endeavouring to train and build up the bodies and minds of workers, to provide a thoroughgoing scientific education, to heighten the productivity of labour, and to train technicians and skilled workers. Thus the economic construction of Manchoukuo and China will be accelerated and assisted as required by the two countries ; Manchoukuo and China will be
supplied with technicians and skilled workers capable and necessary for their industrial development and economic construction. Needless to say, the two countries themselves have to train those types of men in view of the importance of technique. It is further required of Manchoukuo that she should plan not merely for the migration to and settlement in the country of labourers from North China but for the establishment of measures for the self-sufficiency of labour as well as the improvement of its management, in particular, in the mining industry.
Finance and Banking
With a view to expediting the construction of national-defence economy, the function of finance and banking also should be made to conform to the national purpose. In other words, it should so function that the materials required by the State may be ensured in quality as well as in quantity. In order to make possible the execution of an industrial programme embracing Japan, Manchoukuo and China, the distribution of capital must be determined according to an organized plan and a system equal to that task be set up. In that connection, there must be perfected a financial mechanism facilitating the storing of staple goods, in keeping with the progress of technique, along with the creation of spheres of industrial activity, and with changes in industrial equipment. Capital required for the three countries must of course be supplied by their own accumulation. To this end measures must be taken by the three countries for the increase and efficient utilization of such accumulation. With regard to capital necessary for the development of essential industries, Japan is prepared to give assistance in its supply. And the relationship of mutual assistance in international settlements should be established between the three countries as their economic relations become increasingly closer.
Exchange
In respect to exchange in the coming new world order, the principle of commercial trade of the past must be revised to a considerable extent; there must emerge the principle of productive trade, which enables each country, region and economic sphere to supply to others goods required by them in exchange for the goods necessary for its own planned production ; and which regulates trade between those countries and regions, not to speak of that between Japan, Manchoukuo and China, in such a manner as will create a mutual, unitary relationship. In so doing, a special agreement for payments between those countries and regions will be required, with
a view to facilitating the closer flow of goods between them.
Communications and Transport
With the closer flow of goods between Japan, Manchoukuo and China as well as between the regions in the sphere of common prosperity, systems of communications and transport between the three countries must be perfected and operated by a comprehensive and organized plan, thereby ensuring the security of the whole of the sphere. Accordingly, the connection between land and sea transport services of the three countries must be expedited ; a large-scale increase in shipping, control of and connection between air lines, as well as the perfection and extension of electric communication facilities, must be planned.