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{
    "localId": "486500942",
    "label": "Report, Central Intelligence Agency, Japan, Situation Report 38",
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    "id": "486500942",
    "sourceUrl": "https://catalog.archives.gov/id/486500942",
    "contentType": "document",
    "title": "Report, Central Intelligence Agency, Japan, Situation Report 38",
    "citationUrl": "https://catalog.archives.gov/id/486500942",
    "collections": [
        "President's Secretary's Files (Truman Administration)",
        "Intelligence Files"
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    "url": "https://catalog.archives.gov/id/486500942",
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    "levelOfDescription": "item",
    "productionDates": [
        {
            "day": 14,
            "logicalDate": "1948-09-14",
            "month": 9,
            "year": 1948
        }
    ],
    "recordType": "description",
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{
    "seq": 57,
    "pageIndex": 0,
    "type": "photo",
    "url": "https://s3.us-east-1.amazonaws.com/NARAprodstorage/lz/presidential-libraries/truman/hst-psf/602196/875514/875514-01-057.tif",
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    "ocrText": "SECRET\nVolume of total foreign trade since the end of the war has been at a small\npercentage of the 1930-34 level. SCAP has reported that during 1947, imports totaled\n$526,000,000. Of this, $295,000,000 was for food and $83,000,000 for textile fibers, the\nlatter chiefly for processing and to export. Exports in 1947 amounted to $174,000,000,\nof which $133,000,000 consisted of textiles. Exports of raw silk to the US, formerly\nJapan's chief source of foreign exchange, slumped considerably, due chiefly to compe-\ntition from nylon; however, there was a marked improvement in raw silk sales in the\nearly part of 1948. Cotton textile exports improved until November 1947, although\nconsiderable stocks were on hand (350 million yards) at the end of the year. Rayon\nyarn exports recovered somewhat and then declined because of deficiencies in raw\nmaterials. In addition, tea, chemicals, metals, rolling stock and electrical apparatus,\nand small quantities of metals from wartime stockpiles were exported. Small quanti-\nties of coal were shipped to Korea for emergency Occupation requirements.\nMost of Japan's postwar trade has been handled through government-to-\ngovernment channels. However, as of 15 August 1947, private foreign trade representa-\ntives have been permitted to enter Japan, and by early 1948, the number and value of\nprivate contracts were already quite substantial. Private export contracts had been\nmade for machinery and metals; textiles and fibers; ceramics, bamboo, paper, and mis-\ncellaneous products; and furs and chemicals. Private import contracts had been made\nfor coal and minerals; hides, textile fibers and dyes; pulp, rubber, kaolin, and miscella-\nneous products; and food and chemicals.\nSteps have been taken by the Allied powers to facilitate financing of\nJapan's postwar trade. To this end, an import-export revolving fund has been estab-\nlished to serve as a base for financing imports. This fund consists of all negotiable\nJapanese Government assets located in Japan in the form of gold, silver, precious metals\nand stones not subject to claim for restitution. The fund is designed to be pledged\nfor\ntrade credit from private or governmental financing institutions of Allied or neutral\ncountries. A currency arrangement has been made by SCAP and the UK to facilitate\nprivate trade between the sterling areas and Japan. Previously, all Japanese trade had\nbeen transacted in dollars. The arrangement provides that all trade between Japan\nand the participating sterling areas shall be on a sterling basis except exports of cotton\ntextiles manufactured from US raw cotton. The British Government guarantees to\nconvert sterling credits into US dollars at the Bank of England's middle dollar-sterling\nrate of exchange on the date of conversion.\n(6)\nTrade Prospects.\nIf the Japanese economy is to function at all commensurate with its\nprewar level, foreign trade must be the dominant feature of Japan's economy. The\nrecapture of its former foreign trade position, however, will be difficult and perhaps im-\npossible without a far-reaching reorientation of the internal pattern of production. As\nindicated above, Japan's foreign trade is integrated with its industry; like Great Britain,\nJapan must \"export or die.\" Reliance upon exports will be even more pronounced;\nJapan can no longer rely on service items to offset the trade deficit in its balance of\npayments. Moreover, its increasing population requires more imports. Japan must,\nII-21\nSECRET"
}