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- 3 -
also an important factor which will militate against rapid
economic recovery here.
Definitive settlement of reparations will give Japanese
industry a considerable impetus, especially if ready means are
found of financing the importation of raw materials. Conversely,
some foreign claimants are unfortunately going to be disappointed
in what they get and there are indications of resentment which
is creating opposition to the recovery of Japanese economy to
peace-time needs. Due to obsolescence, deterioration and other
factors the available internal assets may not reach a roughly
estimated basic value of more than US $625,000,000, with the
estimated market value about one-fifth of that figure. While the
external assets in Northern Korea, Manchuria and formerly
occupied China and Formosa had a locally estimated value of
US $27,000,000,000, I am afraid that the Chinese and others will
not let that circumstance modify their resentment against us--and
against Japan--in the matter.
The new Japanese Cabinet has published its economic program
and we are hopeful that it will have definitely good results in
time. Meanwhile the dependents of our Occupation population are
increasing with the constant addition of several hundred a month.
This means that we are taking more and more houses, furniture,
etc. from the middle class Japanese. In Tokyo we have taken
most
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"ocrText": "- 3 -\nalso an important factor which will militate against rapid\neconomic recovery here.\nDefinitive settlement of reparations will give Japanese\nindustry a considerable impetus, especially if ready means are\nfound of financing the importation of raw materials. Conversely,\nsome foreign claimants are unfortunately going to be disappointed\nin what they get and there are indications of resentment which\nis creating opposition to the recovery of Japanese economy to\npeace-time needs. Due to obsolescence, deterioration and other\nfactors the available internal assets may not reach a roughly\nestimated basic value of more than US $625,000,000, with the\nestimated market value about one-fifth of that figure. While the\nexternal assets in Northern Korea, Manchuria and formerly\noccupied China and Formosa had a locally estimated value of\nUS $27,000,000,000, I am afraid that the Chinese and others will\nnot let that circumstance modify their resentment against us--and\nagainst Japan--in the matter.\nThe new Japanese Cabinet has published its economic program\nand we are hopeful that it will have definitely good results in\ntime. Meanwhile the dependents of our Occupation population are\nincreasing with the constant addition of several hundred a month.\nThis means that we are taking more and more houses, furniture,\netc. from the middle class Japanese. In Tokyo we have taken\nmost"
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