Occupation Without Troops. Glenn Davis
government to pay Ienaga compensation of ¥300,000, a paltry sum and only a fraction of what the lengthy trials have cost. Ienaga, who had sought ¥2 million for "mental suffering," filed an appeal while the Education Minister of the time, Ryoko Akamatsu expressed regret that Ienaga had received anything, but said she was pleased that the court had upheld the "constitutionality" pf the government's textbook screening system. See "Text Author Wins Damages, but Constitutionality of State Screening is Upheld," The Japan Times, October 21,1993.
5. There is an extensive analysis of this subject in Mitsui: Three Centuries of Japanese Business, John G. Roberts, Weatherhill, Tokyo, 1973.
6. One of the best analyses of the ACJ and its historical role was an article called "The Japan Lobby in American Diplomacy, 1947-1952," by Prof. Howard Schonberger, Pacific Historical Review, vol. 46, no. 3, August 1977, pp. 327-359.
7. One interesting theory making the rounds in 1947 was that the ACJ was out to "get" MacArthur because he had ambitions of running for president once he returned to the United States. According to General Robert L. Eichelberger, then commander of the Eighth Army, MacArthur believed that the "unfriendly articles" on the economy in Newsweek were a "result of fear" of the general's presidential ambitions, wrote Howard Schonberger in a footnote to "Zaibatsu Dissolution and the American Restoration of Japan," Bulletin of Concerned Asian Scholars, Vol. 5, no. 2, September 1973.
8. Harry F. Kern was interviewed by Japan's semi-governmental television station, called NHK, in March 1994 about his role in the Japan Lobby in the late '40s and early '50s. As expected, the aging Kern claimed that he did nothing out of the ordinary in Japan or elsewhere. This documentary was based on many of the materials appearing in this book. Ref: "The Japan Lobby," (A Contemporary Scoop), NHK Channel 1, March 15,1994. Harry told his own, sanitized, version of how the Grumman Scandal unfolded and how he was completely "innocent" of any wrongdoing in a series of interview articles in The Daily Yomiuri, in April 1979.
9. See Chapter 29, "Behind the Curtain," in Mitsui, John G. Roberts.
10. James L. Kauffman to Robert L. Eichelberger, May 13, 1949. This letter is the chief source of biographical information on Kauffman, who was writing Eichelberger—then working at the Pentagon on Japanese economic affairs—to secure assistance in re-establishing his law office in Tokyo. General MacArthur refused to allow Kauffman back in Japan because of his role in the FEC-230 controversy (see Chapter 2). Kauffman finally returned to Japan in 1951 (after MacArthur was relieved of his command) as senior partner of the Mclvor, Kauffman & Christensen law firm. He died in Tokyo in 1968 at age eighty-two. See obituary in New York Times, June 7, 1968. Ref: "Zaibatsu Dissolution," p. 30.
11. See Schonberger, "Zaibatsu Dissolution," p. 28.
12. Unpublished manuscript by Professor Howard Schonberger entitled "Harry F. Kern and the Middle East-Japan Connection," dated June 8,1979.
13. Although many years have passed since this individual was the representative of an American aircraft company in Japan, the source of this information still opts to keep his identity secret.
14. See a description of these events in Schonberger's "Middle-East Connection," p. 8.
15. For his side of the story, see Joseph C. Grew, Ten Years in Japan, Simon and Schuster, New York, 1944. In this book, written in a diary style, Grew speaks highly of his close friend Nobusuke Kishi. "Kishi has always been one of my highly valued friends in Japan and nothing can ever change my feeling of personal friendship and affection for him." p. 523.
16. Address made to the Economic Club of New York, March 22,1939.
17. See New York Times, July 19,1948 article on formation of the ACJ.
18. Even though the Russians had signed a Non-Aggression Pact with Japan that was to expire in 1946, Joseph Stalin had promised the Allied powers at the Yalta Conference that the Soviet Union would enter the war against Japan on August 8,1945, which it did. This opportunistic move has never been forgotten, or forgiven, by the Japanese, who are still technically in a state of war with the former Soviet Union over the "Northern Territories" problem. In the closing days of World War II, Russia saw a golden opportunity to recover territory conceded to Japan forty years earlier after its defeat at the hands of Japan in the Russo-Japanese War (1901-1905). Russian troops were in the Kurile Islands when the first American atomic bomb exploded over Hiroshima. Some even believed Japan would be split into northern and southern parts, with Russia occupying the former and America controlling the latter. As one scholar put it, "She [Russia] had much to gain and nothing to lose simply by a policy of watchful opportunism." Japan's Imperial Conspiracy, David Bergamini, Granada Publishing, London, 1972, p. 57.
19. Some scholars on the bombing of Hiroshima and Nagasaki believe that the American justification of "saving thousands of American lives in an invasion of the Japanese mainland" masked a deeper intention of warning the approaching Russians to stay out of Japan. "The U.S. dropped the bombs to end the war against Japan and thereby stop the Russians in Asia, and give them sober pause in Eastern Europe," wrote William A. Williams in a chapter entitled "The U.S. Overplays Its Hand" in Recent America —2933 to the Present, Edited by Ross, Vaughan and Duff, Thomas Cromwell Co., N.Y., 1971, p. 128.
20. While Harry Kern was busy promoting his friend Nobusuke Kishi to the American people in the early 1950s, Compton Pakenham was equally busy introducing leading Japanese to Kern. "Journalists like Harry Kern and Compton Pakenham, who frequently traveled between Japan and the United States, provided Japanese with another means of overcoming the communication obstacle thrown up by MacArthur's tight rule in Japan," wrote Schonberger. "Even before the formation of the ACJ, Tokyo-based Pakenham linked his Japanese friends to Kern at Newsweek, and through Kern to high corporate and government figures in the United States. Always careful to protect the identity of his Japanese sources in his dispatches and letters, Pakenham was a regular visitor with high officials at the Imperial Palace, the Ministry of Finance, the Foreign Ministry, the Rural Police and, no doubt, many others." See Schonberger's "Japan Lobby in American Diplomacy."
21. The link between Newsweek, the American corporate and government elite, and the "reverse course" policies for Japan appears to be more than coincidental. W. Averell Harriman (Secretary of Commerce, 1946-48, and an influential hard-line Cold Warrior) and his sister, Mary Harriman Rumsey, were key figures in founding Newsweek in 1937 and among its most important financial backers. During 1947 and 1948 E. Roland Harriman, Averell's younger brother, was a member of the board of directors of Newsweek. Averell's close associate and also a co-founder of Newsweek, Vincent Astor, was chairman of the board of the weekly news magazine. See Raymond Moley, After Seven Years (New York: Harper and Row, 1939), pp. 278-281, and Who's Who in America 1972-73, voL 1, pp. 1334-35. Quoted in "Zaibatsu Dissolution," p. 29.
22. See the "Season of Reckoning" chapter of Marc Gayn's excellent book on the Occupation period entitled Japan Diary: An Eyewitness Record of What Is Happening in Japan and Korea, William Sloane Associates, New York, 1948.
23. According to writer William Manchester, MacArthur had first suggested a peace treaty with Japan as early as March 1947. In a speech at the Tokyo Correspondents Club (now the Foreign Correspondents' Club of Japan), the SCAPs commanding general explained his three stages for the Occupation's reforms: demobilization of Japan, political reform, and economic revival. He said the first stage had been completed, the second was almost finished, and if the third was carried out too strenuously by SCAP, it would bring about the "economic strangulation" of Japan. Thus, the time for a treaty between the United States and its former enemy had arrived, he argued. See American Caesar: Douglas MacArthur 1880-1964, William Manchester, Dell Publishing, New York, 1978, p. 626.
24. Ibid.
25. 'Transcript of the Meeting of the Study Group on the Japanese Peace Treaty Problem of the Council on Foreign Relations, October 23, 1950," John Foster Dulles Papers, Princeton University, Princeton, New Jersey.
26. Letter from Kern to Admiral Pratt, September 8,1950. Pratt Papers, Naval War College, Newport Rhode Island.
27. Ibid. See also Takeshi Watanabe, Senryoka no Nihon Zaisei Oboegaki (Memorandum of Japanese Finance under the Occupation), Tokyo: Nihon Keizai, 1966, p. 290 ff.
28. See the extensive connections