Far Eastern Commission

Extract

On December 10, 1948, the United States Departments of State and Army announced that SCAP would direct the Japanese Government to carry out anc effective economic stabilization program calculated to achieve fiscal, monetary, price and wage stability in Japan, as well as to maximize production for export. The nine-point program consisted of the following measures: 1) achievement of a true balance in the consolidated budget by stringent curtailing of expenditures and maximum expansion in total government revenues; 2) assurance that credit extension was rigorously limited to those projects contributing to the economic recovery of Japan; 3) acceleration and strengthening of the program of tax collection; 4) establishment of an effective program to achieve wage stability; 5) strengthening of the coverage of existing price-control programs; 6) improvement of the operation of foreign trade controls and tightening of existing foreign exchange controls to the extent that such measures could appropriately be delegated to Japanese agencies; 7) improvement of the effectiveness of the allocation and rationing system; 8) increasing of production of all essential raw material and manufactured products; and 9) improving the efficiency of the food collection program.