894.60/7–1047
The Political Adviser in Japan (Atcheson) to the Secretary of State
No. 1163
The United States Political Adviser has the honor to enclose copy of a memorandum to the Japanese Government (Scapin 1741) subject: “Dissolution of Trading Companies”, issued by this Headquarters on July 3, 1947.24 This directive, providing specific instructions [Page 254] for the dissolution of the Mitsubishi and Mitsui Trading Companies by the Japanese Holding Company Liquidation Commission, is an addition to directives dated November 6, 1945 (Scapin 244)25 and July 23, 1946 (Scapin 1079)26 respectively, dealing with the dissolution of large holding companies in Japan.
In conversation with an officer of this Mission, the Chief of the Anti-trust and Cartels Division, Economic and Scientific Section of this Headquarters, has stated that, with the exception of the two large trading companies mentioned above and a very few others which are not essential to the Japanese economy and which produce no goods, it is intended that individual components of restricted companies (so-called “Zaibatsu” concerns) will be reorganized rather than dissolved. However, he believes that the directive of July 3 will impress the Japanese business world with the possibility of prompt and effective dissolution, and will spur other restricted concerns to submit plans for reorganization as requested by this Headquarters. In addition, he feels that permitting firms such as the Mitsubishi and Mitsui Trading Companies to enter into foreign trade with the advantage of their foreign contacts and previous informal cartels might result in such trade being directed to former subsidiary companies in Japan, leaving new businesses and small manufacturers in a disadvantageous position.