Page:Economic Reform Policy by Envoy Dodge (Dodge Line).pdf/30

 It is my strong belief, just like yours expressed in the statement, that the profits obtained from the special demand due to the Korean War and the exportation turning favorably should not be wasted, but should be reserved to be used for the extention [sic] of normal trade as well as to improve the capitals and equipments of emergency, especially for the purpose of increasing the efficiency of our industry and expanding (rationalization) the output, etc. However, under the present tax collection system which is too strict, I am afraid that these profits, instead of being deposited in normal banking organs to be accumulated as capital, will be invested for unsound speculations or spent to no purpose in order to evade a tax. Herein lies the great difference between the economy of your country and ours. It is therefore specially requested that you would examine in detail the true state of actual Japanese economy, so that your consideration be given to such means of capital accumulation subject to no taxation as the unregistered deposti [sic] system or discounted bonds of Industrial Bank etc.


 * 3. Extensive appropriation of counterpart fund to rationalization is hoped.

Thr [sic] rationalization of Japanese industry which is far below the world level is an important subject for the reconstruction of postwar economy, considering the necessity of self-supporting our country by means of normal export under the compentition [sic] of world market. But the fundamental solution of the problem ca not be expected only by depending on the funds obtained from special demand or trade profits. Under the present condition of this country where the securities maket [sic] is still undeveloped, not only the raise of long-term fund is not an easy task, but also each industry is very poor in its own fund due to the great devastation of its productive equipment after the war. Adding to this, even the repair of existing equipments is quite difficult to be made within the present unreasonable redemption term of fixed assets, and considering the amount of sinking fund loaned by each industry being several times greater than that of its own fund, the improvement of equipment is absolutely impossible. There is not other counter-measure to take for meeting such situation than the appropriation of counterpart fund or that of Deposit Bureau. I hope in this connection that you special consideration be made so as to advance these funds with importance attached to the exporting industries and other industries forming the common basis of productive activity.