From the Western Socialist, #1, 1968
From mythological archives comes the legend of the phoenix, a bird of rare and unseemly attainments. After a lengthy and variegated existence, a pervasive act of its own volition caused it to be consumed in fire, and eventually to rise in callow newness from its ashes. Modern Japan has a close affinity with that fabulous bird. Playing a reckless role in the attack on Pearl Harbor, it suffered in consequence the fiery ordeal at Hiroshima and Nagasaki and then, in rapid strides proceeded to rise from apparent disaster to take its place among the leading exploitive nations of the earth.
Marx tells us of how the capitalist mode of producing and exchanging wealth got started. Of how the primitive and scattered method of turning out wares and putting them on the market for sale, typified in the peasant tilling his few acres of land, and the artisan using his tools to fashion staples of various kinds; of how this primary production at some point on its growth aroused the tangible means of its decay and demise. Something was stirring in the matrix of society demanding that the old method be ruled out and a new order installed.
The old structure rebels against the threatened change and employs every device at its command to stifle the upsurge but the unavoidable will have its way, and the personalized and deranged means of obtaining goods from field and workshop moves back, while the socially composed mode takes its place. The stunted holding of the self-employed are converted into the massive wealth of a small select class.
Japan Rings in the New
While Marx directed his analysis mainly to the capitalist nations of Western Europe, it applies with even greater cogency to the case of Japan. No country has made its transition from feudalism to capitalism with less hesitancy in the movement than Japan. Her catharsis and liberation from mediaeval economy and into systemized mass production and exploitation of labor was so sudden and effective that it evoked the wonder and enmity of the older nations. Capitalist Japan arrived on the scene sans any red carpet treatment on the part of her dismayed colleagues. She had to go it alone.
Even in the world that existed prior to the second big war, Japan was an aggressive and splenetic competitor in the market of nations. Shoved in the midst of competitive forces she had no alternative but to become a competitor. It was a case of compete or die. Her first reaction was to copy the methods already established by her rapacious confederates in the West. She was not dilatory in learning the role of profiteer. All the tricks of the trade were acquired in short order, and finishing touches were added to those already in vogue. Her proficiency in the guileful art was observed and evaluated by the older recreants and every ruse was adopted to restrict the gimmicks of their avaricious neighbors. But despite the repellent measures of tariffs, sanctions and threats, Japan moved forward and made her influence felt in global affairs.
But the old, prewar Japan that was feverishly building an army and navy to cope with military competitors in getting a share of world trade is gone. Her experience in participating in a war of conquest brought home the fact that this was not the advisable route to travel in search of the coveted profits. A more accessible and effective way to the desired bonanza was found in aid, investment, diplomacy, and trade. These might well invoke some sounds of alarm on the industrial frontier, but they could be diverted to greater advantage in reaching the hoped-for destination than what was offered in promoting the weapons of war.
Commercial Travelers
The Japanese economy has been fashioned with speed and solidity since World War II. Being Asia’s most advanced nation in a capitalist sense, Japan is bidding for dominant influence in that region, and backing its bid with enormous loans and investments. Japanese national output has increased at an annual rate of more than ten percent over the last ten years, a nation which exceeds that of any of its aspiring rivals. Just a year ago Japan turned the financial corner and became a life-sized member of the creditor nations, entitling her to an honored seat in the Monetary Wizard’s Fellowship from now on.
Japan’s industrial apparatus has been materially transformed during the postwar years. Instead of light and cheap products made by cheap labor, the move has been made to heavy industry and chemicals which now accounts for two thirds of all Japan’s manufacture. While this change was sure to take place at some stage, it was stimulated by the switch to the construction of military and naval equipment during the war years. Being short of virtually every item essential to industrial production, Japanese envoys, agents, and directors are scouring the earth’s surface in search of the ingredients necessary to keep their factories busy.
In Latin America, Japan is challenging the U.S. tycoons in seeking raw materials and commodity sales, and has already invested more than 300 million dollars to make good the attempt. A large Brazilian shipyard is half-owned by Japanese, while in the same country a half ownership in the Usi Minas steel mill has been negotiated. Projects contemplated for 1968 include a 20-million-dollar steel rolling mill in Argentina, a microwave factory in Columbia, and a 7-million-dollar deal in boilers to Mexico. Already effected are railroad cars to Bolivia, trucks to Mexico, a paper plant to Argentina, and auto assembly plants to Peru.
In Australia, the Japanese have made entry in vigorous style. Big coal deals are getting bigger. A record 10-million tons are expected for 1968. Shipments of salt to Japanese chemical companies are made regularly. Tin concentrate sales are increasing. A pulpwood project is under study, while big investments in iron ore are featured, and the potential mineral wealth of the western and northern section of the continent are being assayed. In return, Japan is multiplying the sales of manufactured goods to Australia. Big tariff reductions have been asked for and granted and, for the first time in history, Australia sold more to Japan in the past year than to “Mother England.”
In Canada, the Japanese have been busy for some years exploring and investing in the mineral, timber, oil, and potash resources, principally in the north and the west. In recent years the Canadians have been selling about 120 million dollars worth of wheat annually to Japan. This deal is now in jeopardy. Japan has recently invented a new process for milling wheat. This enables her to substitute the softer and cheaper grades of Australian wheat for the hard, high-quality species grown in the Canadian west.
Asia First
But, while the ambitious Japanese capitalists are making entry on every trail of the earths resources for materials and markets, it is to the continent of Asia that they direct their main attention. While her growing economic power enables her to flex her political muscles and maker her way to every latent market on the international scene, the Asian prospects are serviced first. Joint ventures, mutual trade deals, and secret agreements are the instruments in constant use to stimulate and clinch sectional contracts aimed at presumedly mutual gains.
So far, there have been 215 separate investments in Asian countries. They do business with anyone, anywhere, anytime. The ideological complexion of the customer is of no moment. Japan does more trading with China and Soviet Russia than any other “free-enterprising” community. It is the chief trading partner of Thailand and Taiwan, and second in Korea, Malaysia, and the Philippines. Asia is the designated “Co-Prosperity Sphere” for Japanese development, and regional cooperation is sought in the effort to build a more stronger and more stable Asia under Japanese domination. Two-thirds of Japanese economic aid is currently being channeled into Asian territory. This in no way implies that the aid is extended for altruistic purposes. There is a gainful catch in the generous mood. Even the backward recipients occasionally note that the assistance is heavily weighted in Japans favor. Loans and credit have interest rates attached that call for as much as 5 or 6 percent. It’s another case of economic colonialism in a novel setting. Japanese aid, like Japanese investment, is securely tied to trade and tailored neatly to Japanese needs. The objective is to force its neighbors into the position of being obsequious suppliers of raw materials and a ready market for finished commodities.
When adjacent anxieties and complaints emerge from the one-sided contracts, the invariable rule is to suggest that their retarded partners assume Japan’s prewar role of furnishing light industrial goods produced by cheap labor. But even this advice has its sinister connotations. No move is made to eliminate or lower existing tariffs which excludes such goods. The palpable idea is to get them to peddle their cheap goods to other countries, thus evading confusion in the local market.
Bilking Uncle Sam
The efficacy of the Japanese trading policy is seen even in the war in Vietnam. While no support is countenanced in the way of providing foot soldiers or advisory personnel, there is nothing to thwart participation in an economic capacity. Wily Japanese strategists are recurrently dispatched to Washington to “varnish nonsense with the charms of sound,” and encourage the Administration to prolong the war, while Japanese business magnates are making sales and reaping profits behind the lines.
The U.S. capitalists supply the bulk of Saigon’s dollars and credits. But this largess has restrictions on the way the gratuities are to be handled or disbursed. They cannot be spent for the purchase of professed luxury goods from the U.S. But the Japanese traders have generously shown their customers in S. Vietnam that there are loopholes in the contract through which the desired ends can be obtained. They can spend the aid funds for the purpose prescribed, and utilized their own stock of foreign exchange to make payment for the articles classified in the luxury column. This has resulted in 38 million dollars worth of Japanese vehicles being sold to Saigon buyers in the past year. That this adds to the drain on the American dollar is for America to worry over; the profits go to the suppliers in Japan.
That the Wall Street manipulators do not take kindly to this display of business ethics can readily be concluded. They are tacitly concerned over the means employed. But they have little choice but to shut their eyes on the odious practice. Counteract Japan, and the only available substitute is Red China. When Peking growls or threatens, it acts as a catalyst to promote unity among the little nations, and enhance Japan’s claim to leadership on the Asian stage. The overall picture is not a pretty one.
The Forces of “Self-Defense”
While emergent Japan is denied the privilege of making, testing, or using the lethal products of the nuclear age, by the harsh prescriptions of international law, this doesn’t interfere with the construction of atomic plants for the extensive application of nuclear powering the years ahead. A British company has already completed an immense reactor in a Tokyo suburb, and the American General Electric and Western Electric are engaged in building more than a score of plants to generate many millions of kilowatts for the 70′s and 80′s to provide Japan with the power required for further expansion.
When a nation attains the status of a world competitor on the industrial level, however, it requires no special mental acumen to discern that it must have at its disposal a sufficient amount of force to protect its premises. Japan has passed the U.S., Britain, and the U.S.S.R. in the building of ships. It is second in automobiles and third in steel production. When the new Constitution was adopted, following the war, Japan forever renounced all military armaments as a means of settling international disputes. Only enough for the defense of the homeland was included. But his was enough to establish a potential that could be fostered when the need arose. Today she maintains air, land, and sea forces of material strength. Her Air Self-Defense Force consists of about 40,000 men and more than 1,000 aircraft ready for action. This defense layout means 24 radar stations in Japan and is now engaged in constructing a Base Air Defense Ground computer system. The complete network of air defense gives Japan the best equipped and most powerful air force in Asia, with the one exception of the U.S.S.R.
In Ground and Maritime Self-Defense, Japan also occupies a strong position. There are over 140,000 men in the ground force, while the maritime force comprises 33,000 men, and 225 vessels, mainly destroyers, patrol boats, and auxiliary craft. Nor is this the end of the project. The governing board is currently completing the third Defense Build-up plan that will serve as the basic guideline for defense spending through the fiscal year of 1971.
All this huge defensive mechanism is built and maintained for a definite purpose. It institutes that there is something that makes adamant a powerful war machine. This something would naturally have to come from the outside. Japanese officials have repeatedly asserted that they have no enemies, but that the Soviet Union and China are not basically friendly to Japan. This is an understatement. They are sufficiently unfriendly to warrant the spending of billions to negate their unsociable approaches.
There are no friendly alliances between capitalist nations. Each is motivated to acquire as much as possible of the world’s wealth. To support this ambition, each must depend on its own military might. Temporary arrangements may be made to gain certain objectives, but these can be discarded as soon as the emergency ceases. The tooth and claw syndrome is ever in evidence.
No Change for Workers
While surveying the status of Japanese industry and marketing facilities, it is well to take a look at the 30 or 40 million workers who are directly responsible for the existing wealth, and every department of sale or exchange. There is no resurgence in this section of Japanese society. The edibility gap has not been closed. A higher standard of living has resulted from the growth of industry, but this was necessary on order to keep the pace with the industrial competitors, and even this seeming advantage is negated by the fact that relative to what the owners accumulate in the process, the workers position is worse than before.
All the novel disclosures of modern science are summoned to stimulate speed on the job, and so soon as one method is exhausted another drops into place. Among the social profundities excreted for welding the workers to their servitude are the old familiar perennials from profit sharing to cheap burial services for those who expire on the scene of duty. The phony panaceas are the same everywhere.
-J.A. McDonald
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