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DECLASSIFIED E. O. 11652, Sec. 3(E) and 5(D) or (E) 201 OSD letter, April 12, 1974 By NLT- He , NARS Date 7-3-75 is estimated that population is currently 79 million and will be 86 million in 1953. Coking coal, iron ore (or pig iron), bauxite, salt, textile raw materials, rubber, and petroleum are all seriously deficient. There are in Japan capital facilities, if not removed on reparations account, useable and convertible for the production of equipment to support limited armed forces. Also there is the trained manpower to operate such facilities. However, external supply of additional food and raw materials would be essential for such en effort. b. Japan's industries, under current reparations policies (SWNCC 236/43), will be inadequate to allow Japan to attain in the foreseeable future E. self-supporting economy at the 1930-34 level, let alone produce armament. Predicated upon conditions more favorable than those envisaged in this study, Overseas Consultants, Inc. in their recent report, recom- mended against the removal of productive facilities (except primary war facilities) which can be effectively used in Jepan. Under a program of limited armament, levels of industry recommended by Overseas Consultants, Inc. might have to be raised. C. Japan's economy is dependent upon merchant shipping TRUMAN to move into Japan major requirements of the basic raw AND materials for her industry and the extra food to feed her Ess. people. In addition, in pre-war years, the merchant fleet carried about two-thirds of the tonnage of Japan's domestic trade and earned the foreign exchange to offset in part Jepan's unfavorable balance of trade. Overseas Consultants, Inc., estimate that Japan's merchant shipping will need to be increased from the existing 1.3 million gross tons and authorized 2.0 million g.t. to 4.0 million g.t. to restore economy to pro-war levels. d. Financially, Japan is suffering from acute inflation, an unbalanced budget, and no foreign exchange or assets. TOP SECREAT - 13 - Tab "IC" to Annex 11/11

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    "ocrText": "DECLASSIFIED\nE. O. 11652, Sec. 3(E) and 5(D) or (E)\n201\nOSD letter, April 12, 1974\nBy\nNLT- He , NARS Date 7-3-75\nis estimated that population is currently 79 million and\nwill be 86 million in 1953. Coking coal, iron ore (or pig\niron), bauxite, salt, textile raw materials, rubber, and\npetroleum are all seriously deficient. There are in Japan\ncapital facilities, if not removed on reparations account,\nuseable and convertible for the production of equipment to\nsupport limited armed forces. Also there is the trained\nmanpower to operate such facilities. However, external\nsupply of additional food and raw materials would be essential\nfor such en effort.\nb. Japan's industries, under current reparations policies\n(SWNCC 236/43), will be inadequate to allow Japan to attain\nin the foreseeable future E. self-supporting economy at the\n1930-34 level, let alone produce armament. Predicated upon\nconditions more favorable than those envisaged in this study,\nOverseas Consultants, Inc. in their recent report, recom-\nmended against the removal of productive facilities (except\nprimary war facilities) which can be effectively used in\nJepan. Under a program of limited armament, levels of\nindustry recommended by Overseas Consultants, Inc. might have\nto be raised.\nC. Japan's economy is dependent upon merchant shipping\nTRUMAN\nto move into Japan major requirements of the basic raw\nAND\nmaterials for her industry and the extra food to feed her\nEss.\npeople. In addition, in pre-war years, the merchant fleet\ncarried about two-thirds of the tonnage of Japan's domestic\ntrade and earned the foreign exchange to offset in part\nJepan's unfavorable balance of trade. Overseas Consultants,\nInc., estimate that Japan's merchant shipping will need to be\nincreased from the existing 1.3 million gross tons and\nauthorized 2.0 million g.t. to 4.0 million g.t. to restore\neconomy to pro-war levels.\nd. Financially, Japan is suffering from acute inflation,\nan unbalanced budget, and no foreign exchange or assets.\nTOP SECREAT\n- 13 - Tab \"IC\" to Annex 11/11"
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