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a. The Democratic-Liberal Party (Minshu Jiyuto).
The Democratic-Liberal Party (DLP) was inaugurated on 15 March 1948 by
the Liberal Party, which was dissolved at that time. The organization and personnel
of the Liberal Party was transferred to the DLP. In addition, 35 former members of
the Democratic Party joined the DLP. Through the Liberal Party the DLP has in-
herited much of the organization, leadership, and political connections of one of the
two major prewar conservative parties, the Seiyukai. The DLP represents essentially
the same vested interest groups that dominated prewar political parties-business and
financial groups, the bureaucracy, the landlords, and the aristocracy. In the postwar
period the DLP has also gained the support of many of the new yen groups, which
have the same interests as the more firmly established moneyed interests.
The DLP's economic policies are based on the principle of a privately organized
economic system free from government control, although the party recognizes that
minimum controls may be essential in the immediate future. The party favors restric-
tions on organized labor, especially in regard to political activity of trade unions, strikes
in important public services, and the use of production control by labor unions;
a
reduction of individual and corporate earned income taxes; the free sale of agricultural
products, over and above the fixed quota, at free market prices. Politically, the party
is firmly opposed to communism and, if circumstances permitted, would undoubtedly
favor restrictions on Communist activities.
The DLP is at the present time the largest single party in the House of Repre-
sentatives, with 152 seats. During the past year the party has strengthened its national
and local organization, increased its membership, and gained in public support at the
expense of the parties in power. The DLP is therefore in a favorable position to in-
crease its Diet membership in the next general election.
b. The Democratic Party (Nippon Minshuto).
The Democratic Party was inaugurated in March 1947 by the Progressive Party
and a few dissidents from other parties, including the Liberal Party. The Democratic
Party has inherited the vestiges of the organization and personnel of the Minseito, one
of the two major prewar conservative parties. The Democratic Party is supported
by essentially the same vested interest groups as the rival Democratic-Liberal Party,
thus producing a situation similar to that which obtained in the prewar period when
two conservative parties supported by the same interest groups were divided primarily
on the basis of personal rivalries rather than issues of policy.
The Democratic Party's program calls for the organization of the economic
system on the basis of limited government control, but the party has opposed all
measures designed to alter the fundamental principle of private ownership of the means
of production. The fact that the Democratic Party has for over a year been a member
of a coalition government with the Socialists and as such has been forced to compromise
its policies for the sake of agreement with the Socialists has been responsible for the
defection of over forty Democratic Diet members from the party. The Democratic
Party is still divided over the issue of cooperation with the Socialists versus the unifica-
tion of the conservative parties into a single party. Differences in policy between the
I-15
SECRE
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"ocrText": "SECRET\na. The Democratic-Liberal Party (Minshu Jiyuto).\nThe Democratic-Liberal Party (DLP) was inaugurated on 15 March 1948 by\nthe Liberal Party, which was dissolved at that time. The organization and personnel\nof the Liberal Party was transferred to the DLP. In addition, 35 former members of\nthe Democratic Party joined the DLP. Through the Liberal Party the DLP has in-\nherited much of the organization, leadership, and political connections of one of the\ntwo major prewar conservative parties, the Seiyukai. The DLP represents essentially\nthe same vested interest groups that dominated prewar political parties-business and\nfinancial groups, the bureaucracy, the landlords, and the aristocracy. In the postwar\nperiod the DLP has also gained the support of many of the new yen groups, which\nhave the same interests as the more firmly established moneyed interests.\nThe DLP's economic policies are based on the principle of a privately organized\neconomic system free from government control, although the party recognizes that\nminimum controls may be essential in the immediate future. The party favors restric-\ntions on organized labor, especially in regard to political activity of trade unions, strikes\nin important public services, and the use of production control by labor unions;\na\nreduction of individual and corporate earned income taxes; the free sale of agricultural\nproducts, over and above the fixed quota, at free market prices. Politically, the party\nis firmly opposed to communism and, if circumstances permitted, would undoubtedly\nfavor restrictions on Communist activities.\nThe DLP is at the present time the largest single party in the House of Repre-\nsentatives, with 152 seats. During the past year the party has strengthened its national\nand local organization, increased its membership, and gained in public support at the\nexpense of the parties in power. The DLP is therefore in a favorable position to in-\ncrease its Diet membership in the next general election.\nb. The Democratic Party (Nippon Minshuto).\nThe Democratic Party was inaugurated in March 1947 by the Progressive Party\nand a few dissidents from other parties, including the Liberal Party. The Democratic\nParty has inherited the vestiges of the organization and personnel of the Minseito, one\nof the two major prewar conservative parties. The Democratic Party is supported\nby essentially the same vested interest groups as the rival Democratic-Liberal Party,\nthus producing a situation similar to that which obtained in the prewar period when\ntwo conservative parties supported by the same interest groups were divided primarily\non the basis of personal rivalries rather than issues of policy.\nThe Democratic Party's program calls for the organization of the economic\nsystem on the basis of limited government control, but the party has opposed all\nmeasures designed to alter the fundamental principle of private ownership of the means\nof production. The fact that the Democratic Party has for over a year been a member\nof a coalition government with the Socialists and as such has been forced to compromise\nits policies for the sake of agreement with the Socialists has been responsible for the\ndefection of over forty Democratic Diet members from the party. The Democratic\nParty is still divided over the issue of cooperation with the Socialists versus the unifica-\ntion of the conservative parties into a single party. Differences in policy between the\nI-15\nSECRE"
}