After 1947 the USA introduced the “reverse course” on Japan 5. US containment in action in Asia
This meant that the US had changed their ideals from reparations and
the deconstruction of Japan towards a more reconstruction and - At the s
development side of things. KMT in th
Their recovery was seen by the US as an establishment of a powerbase What was the General Agreement on Tariffs
in Asia, they also were anti-communist minded and began to target - Mao wa
and Trade (GATT)?
communists in Japan rather than war criminals, and this was part of interest i
This was created by the UN at the end
their idea for Japan was to stop them from falling to communism Taiwan th
of the 2nd world war
At the start of 1949 General MacArthur as supreme commander for the It formed through a multinational - In 1949
allied powers (SCAP) had received a directive from Washington that agreement to manage international attempt t
measures had to be taken to ensure Japan’s economic recovery which trade and minimise tariffs and duties
symbolised that the US now had a structed approach towards Japan’s - Howeve
in order to maximise international
recovery before th
trade
This planned attempted to provide economic stability by creating a Taiwan, b
balanced budget, wage controls, stricter lending criteria, price controls, weren’t s
a more efficient tax systems as well as increased regulation of trade and reinforce
increased regulation of foreign exchange US-Japanese relations - Supporti
This programme was based on control and austerity but it focused on - Japan’s geographical significance was brought into a new phase when in Feb CCP,
the accelerated economic recovery in order to align Japan with the USA 1950 Mao Zedong formed a military alliance with the USSR and in November they
Joseph Dodge (a Detroit banker) was appointed to SCAP was the joined North Korea in their war against south Korea - The wh
economic advisor and given responsibility for implementing the plan - in many respects this involvement led to the globalisation of containment and of direct
Dodge worked with Japan’s finance minister Hayato Ikeda and they increasing commitment of the USA as global policeman
produced the “super-balanced budget” and this set a surplus target of - As the US needed Japan to globalise containment, The Prime minister Yoshida
157 million yen a year (nearly $4 million) However the budget initially formed a 2nd world war peace treaty with the USA to reintroduce their sovereignty
led to increased unemployment due to business closures In return for the implementation of US troops on Japanese soil
The San Francisco Peace Treaty, Sep. 1951
- the treaty didn’t place significant restrictions of Japan’s economy, identify
Japan’s responsibility for the war, impose reparations for south Asian states
-
occupied by Japan during the war or restrict Japan’s future rearmament
1
- Of the allied powers only the USSR refused to sign the agreement and
-
China didn’t as well
o
- The treaty did, recognise Japan’s sovereignty, force Japan to renounce
-