Page:Economic Reform Policy by Envoy Dodge (Dodge Line).pdf/7

 services left over after satisfying the requirements of the government, exports, capital programs and war termination costs.

Under present conditions if the people are to have or to consume more it can only come from reducing these requirements or as a gift from the United States. Therefore, any relaxation in favor of the domestic economy must be offset by a tightening up somewhere else and every consideration in favor of the domestic economy must be accompanied by offsetting proposals of retrenchment.

There should be a general recognition that an increasing part of the national output will be needed for years ahead to replace the free goods now coming from the United States, which cannot come forever.

If this is to be accomplished, there must be less of thinking solely in terms of how much U.S. aid will be forthcoming and more thinking of increased production, decreased costs and greater exports. To substantially increase exports will require continued limitations on domestic consumption and an emphasis on the needs of the export consumer rather than that of the domestic consumer. While the domestic need for consumer and capital goods is real and apparent, internal rehabilitation and expansion necessarily falls into second place behind the need for a priority of exports. The objective must be to achieve self-support so as to warrant continuation of U.S. aid and ultimately create the conditions favorable for foreign credits.

It should be understood clearly that the U.S. Government is rightly concerned that lasting benefits to the Japanese economy and itself must