Double Prescription

Yesterday's report of a U.S. defense pact with Japan adds emphasis to the pressing need for Japanese economic stability. While Premier Yoshida has steadied the political situation in that nation, Japan is now fighting a subsistence battle with its shaky economy. The slackening of United States purchases since the Korean war has left a large trade deficit. Food imports necessary to feed the population far exceed the export market for Japan's industrial output. For this reason, although quite strongly opposed to Russia, a hungry Japan might look more favorably toward Communist promises.

Expansion of Japanese exports must come in the production of steel, machinery, and other heavy industry. Here, Western markets are closed because of their more economical production of these goods. Japan's paradox is that, in the Far East, where heavy industry is so plainly needed, the markets still remain shut to Japan. One reason for this abstinence is an ingrained hatred of Japan left over from wartime abuses. But far more important are the crippled economics of the Eastern countries. Bridled by antiquated methods of production, the mainland countries, far from exporting food, can barely manage to feed their own people.

A long term goal for strengthening the Far Eastern trade would be a mutual support system like that employed in Europe. Mating a flow of raw materials from southeast Asia with the industrial output of Japan would ensure economic stability. While low production makes this plan impossible at present, the United States could build toward it by channeling Far East aid through Japan. Its factories could make the agricultural equipment destined for the Asian countries. A double prescription, this would employ Japanese industry while promoting increased productive ability on the mainland. The loss of this market would hardly affect the huge economy of the United States but would be a great stimulus to Japan.