Page:Economic Reform Policy by Envoy Dodge (Dodge Line).pdf/3

 March 7th, 1949 Text of Dodge's Statement

The statement issued by Joseph M. Dodge, Economic Adviser to General MacArthur, at a press conference yesterday follows in full:

On a New Currency

There is no reason for any assumptions to arise from the fact that at one time I worked on the original plans for a German financial rehabilitation which included drastic currency devaluation, since put into effect.

My presence in Japan does not indicate that any plans have been made for similar monetary devaluation for Japan.

Whatever the problems may be here they will be approached and considered by everyone concerned solely on the basis of local conditions and the fundamental requirements for achieving and effective financial and economic stabilization under the conditions relating to Japan alone.

I will state my personal conviction that, as a matter of principle, a currency devaluation should be avoided if any way can be found to do so. This will largely depend on the course of events. Principally, it will depend upon the sincerity and effectiveness with which the Japanese Government and the Japanese people meet the difficult problems connected with halting inflationary trends and achieving an actual financial and economic stabilization.