order of the governor or the mayor. The prior permission of the Minister of People's Welfare, however, shall be obtained (in connection with such regulations). 6. When any disposition of a temple representative or of a propagandist has been made in accordance with. Articles 11 or 12 of the Regulations, the Governor or the Mayor of the Hsinking Special Municipality without delay shall report the fact to the Minister of People's Welfare. Source: "Manchoukuo" Official Gazette, November 2, 1938. VI ORGANIZATION OF THE NATIONAL ECONOMY Introductory Note A policy of planned economy has been followed in "Manchoukuo" from the outset. The Kwantung Army, the dominating influence in affairs in "Manchoukuo", sponsored a program of official monopoly and strict control. The first concrete application of this program in the field of industry was contained in the 1937 control law, which designated nineteen key industries to be under the close supervision of the government. Other industries were left open to "free" private enterprise. But, as all important manufacturing activities were included in the restricted list, few lines of any importance were left available for unfettered private capital. The strict control envisioned by the government did not, however, preclude, the participation of private capital. To preempt the field of heavy industry in "Manchoukuo" and to achieve its systematic expansion, an agreement was reached between the "Manchoukuo" authorities and one of the newer capitalists in Japan-- Y. Aikawa, who controlled the Nissan interests. The Manchuria Industrial Development Corporation was formed with a capital of 450 million yuan, half subscribed by the "Manchoukuo" Government and half by the Nissan interests. A series of plans for the investigation of national resources. (infra) were also drafted in 1937. Logically they should have preceded the inauguration of the five-year plan instead of being introduced at roughly the same time. The Northern Frontier Development Plan (infra) is outside the scope of the five-year plan and was a special measure, strategic in motive, to develop the communications and further the exploitation of the thinly settled frontier provinces. Provision for wartime control of all phases of economic life was contained in the National Mobilization Act passed in 1938 (infra), which was closely patterned on the Japanese Mobilization Act. The creation of a planning commission, for which the organic law is given infra, also followed the Japanese model. With the statement of July 23, 1938 regarding the supply of materials between Japan and "Manchoukuo" (infra) a change of emphasis became apparent. Instead of continuing with its plan to build an independent industrial base in "Manchoukuo", the country was to concentrate on the maximum supply of raw materials to Japan. The 1940 law for the control of prices and commodities followed familiar Japanese measures and was required to meet the inflationary trend in "Manchoukuo". Law for the Control of Important Productive Industries in "Manchoukuo" Imperial Ordinance No. 66 Promulgated May 1, 1937. Article 1. Persons wishing to engage in any important productive industry shall obtain the permission of the competent minister of state as prescribed by his orders. Article 2. Persons engaged in any important productive industry shall submit to the competent minister of state a statement reporting, as prescribed by his orders, each business year's business and business plans. Article 3. The competent minister of state may issue to persons engaged in any important productive industry orders relative to their business needed for the public good or for purposes of control.. Article 4. Whenever he deems it specially necessary, the competent minister of state may cause persons engaged in any important productive industry to report on their business or financial condition or cause officers under him to examine the safes, books, and other various documents and materials. Article 5. Persons engaged in any important productive industry shall, in the following cases, obtain the permission of the competent minister of state as prescribed by (his) orders: 1. When they wish to make a control agreement or change or 2. When they wish to expend or make changes in their 3. When they wish to transfer the whole or a part of their business; .. 4. When, in the case of juridical persons, they wish to. amalgamate. Article 6. Persons engaged in any important productive industry shall, in the following cases, make report without delay to the competent minister of state: 1. When they wish to cease or suspend the whole or part of 2. When, in the case of juridical persons, they wish to Article 7. When persons engaged in any important productive industy violate this law or orders issued thereunder or dispositions made in accordance therewith, the competent minister of state may cancel the permission mentioned in Article 1. Article 8. Persons who have engaged in any important productive industry without the permission of the competent minister of state shall be punished by a fine not exceeding Yuan 5,000. Article 9. When persons engaged in any important productive industry fall under any of the following categories, they shall be punished by a fine not exceeding Yuan 1,000: 1. 2. When they violate an order of the competent minister When they violate the provisions of Article 5. Article 10. Persons who fail to make a report ordered under the provisions of Article 4, or make a false report, or refuse, hinder or evade the inspection mentioned in the same article shall be punished by a fine not exceeding Yuan 300. Article 11. Persons who violate the provisions of Articles 2 or 6 shall be punished by a fine not exceeding Yuan 100. Article 12. When employees or other related persons commit in connection with the business of their principal an act for which a punishment is prescribed, the principal shall be punished as well as the doers; provided, however, that when the principal is a person of weak mind or, in relation to business, a minor without the same power as a competent person, his legal representative shall be punished. Article 13. When employees or other related persons commit in connection with the business of a juridical person an act for which a punishment is prescribed, the company member or employee who manages the business shall be punished as well as the doer. When a company member or employee who manages the business of a juridical person commits an act mentioned in the preceding clause, such member shall be punished. Article 14. When, in the case of Article 12 or the first clause of the preceding article, the principal, legal representative, company member or employee proves that there was no way to prevent the violating act in question, he shall not be punished. Supplementary Rules This law shall go into effect on May 10, 1937. Persons who are presently engaged at the time this law goes into effect (in any important productive industry), having already received permission from the competent minister of state, shall be deemed to have received permission in accordance with this law. Persons engaged at present in business at the time this law goes into effect who have not had the permission of the competent minister of state shall apply for permission according to this law within sixty days from the time the law goes into effect. Persons who have applied for permission as mentioned in the preceding paragraph may continue their business as before until they have received permission. Source: : "Manchoukuo" Official Gazette, No. 924, May 1, 1937: Matters Relative to the Law for the Control of Important Productive Industries of "Manchoukuo"" Imperial Ordinance No. 67 Promulgated May 1, 1937 Article 1. Important productive industries according to the provisions of Articles 1 and 2 of the Law for the Control of Important Productive Industries are the following: Manufacture of arms Manufacture of automobiles Manufacture of liquid fuel (mineral oils and pure alcohol) Coal mining (excluding mines producing less than 50,000 Manufacture of woolen textiles (excluding those woven by hand) Manufacture of cotton textiles (excluding those woven by hand) annually) Weaving of hemp yarn (excluding that woven by hand) Manufacture of beer Manufacture of sugar Manufacture of tobacco (establishments producing above Manufacture of soda (excluding refining of natural soda) Oil crushing (employing the squeezing method or more than Manufacture of cement Manufacture of matches Article 2. The competent minister of state referred to in the Law for the Control of Important Productive Industries shall be, in the case of arms manufacture and aircraft manufacture, the Minister of Industry (in the case of the jurisdiction of the Mongolian Affairs Department,' the Minister of Mongolian Affairs) and the Minister of War; in the case of liquid fuel manufacture and match manufacture, the Minister of Industry (in the case of the jurisdiction of the Mongolian Affairs Department, the Minister of Mongolian Affairs) and the Minister of Finance; and in the case of the other industries the Minister of Industry (in the case of the Jurisdiction of the Mongolian Affairs Department, the Minister of Mongolian Affairs). |