Ext 6116/46(S) 'Secret Weekly Political Intelligence Summaries, nos 356-416, August 1946-November 1947' [‎26v] (52/978)

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the target figure and no further improve
ment has occurred in the first half of
October. Production in the metals, chemi
cals. fats and pulp industries continues to
rise. Nearly all raw materials are still so
short, however, that Japanese production
is very far from being able to pay for
minimum imports. Estimates of the extent
of the black market and of its depredations
on the controlled economy are unreliable,
but all accounts agree that they are con
siderable. Movements have been started in
Government departments, with a measure
of assistance from Trade Unions, the
Tokyo Chamber of Commerce and some
consumers, to enforce controls and to
improve production and distribution. Tax
evasion seems to have reached alarming
proportions, and one report by a Chinese
Central News correspondent states that
only 26 per cent, of the taxes due are being
collected.
Against a background of such sombre
reality the head of the Treaty Department
of the Japanese Foreign Ministry has
stated before the House of Councillors that
Japan has 44 not been conquered ” and will
not stand as a defendant at the peace con
ference. The individual in question has
been promptly dismissed but his statements
are symptomatic of a mood of unjustifiable
buoyancy. Party politics also appear to be
infected with premature preoccupation
about the peace treaty. The Liberal party,
for instance, has suggested that Yoshida.
the party chairman and former Prime
Minister, is the only man qualified by his
political importance, his uncompromised
past and his acceptability to General
MacArthur to be Japan’s representative at
the peace conference. From this premise
the Liberals have been endeavouring to
argue the Democrats out of the present
coalition into a new “ Conservative
Party ” which they propose to form under
their own leadership to take over the
government of the country before the peace
conference is convened. These manoeuvres
continue, and serve to unsettle such stability
as at present exists in Japanese politics.
The Socialist party, moreover, is reported
to suffer from strong personal antipathy
between two of its leaders, both of them
Ministers, while the Democrats have always
been divided in their attitude towards their
coalition with the Socialists.
Korea
The recent publication in south Korea of
the results of investigations concerning the
rising planned by the Communists for the
15th August last, but forestalled by the
United States forces (see Summary
No. 404), has implicated a member of the
Soviet delegation to the Soviet-American
Joint Commission in Seoul. As a conse
quence the chief Soviet delegate on the 17th
October protested to the G.O.C., United
States forces, about ‘ ‘ inimical attacks^on
the Soviet delegation ” and demanded \ne
removal of the Korean metropolitan police
chief. This protest opened the way for a
telling reply from the United States com
mander on the 20th October into which he
introduced, to show the credibility of the
very moderate allegations made against the
individual in question, some statements on
the general nature and extent of Com
munist seditious activity in the American
zone, on the direction which this activity
receives from the North Korean Labour
Party, on the part played in it by the North
Korean radio, and on the great quantity
and conclusive nature of the evidence on
which these accusations are based. The
statement ended by saying that, far from
being removed, the chief of police will be
encouraged to further vigilance in defence
of the interests of the Korean' people and
the United States Zone against such sub
versive and terroristic activities.
On the 21st October, on instructions
from Moscow, the Soviet delegation to the
Joint Commission in Seoul began to with
draw and the last members left on the 23rd.
This withdrawal is not thought to be
directly related either to the exposure of
subversive activities or to the American
suggestion that the Commission should
adjourn pending debate in the General
Assembly.
The left wing is thus for the moment dis
comfited in south Korea, and Dr. Rhee is
rejoicing with the right. Intelligent
Koreans, however, appear to be making up
their minds to the prospect of eventual
civil war. The right-wing parties still
conduct themselves noisily, to the frequent
embarrassment of their American friends,
but militant organisations including a
“ Braving Death Society ” under Kim Koo
have been forming for some time, and there
is now talk of building a united “ Public
Peace Army ” for the defence of the south.
Discussion of the American Resolution
opened in Committee No. 1 of the Assembly
on the 28th October. The United States
Representative stressed the responsibility
of the occupying Powers for the formation
of a Korean Government. He stated that
existing electoral laws (mentioned in Sum
mary No. 413), though imperfect, would
serve for the initial elections; and he went
on to say that withdrawal of the occupation
troops should follow the establishment of