ABSTRACT

The imprint of the Supreme Command for the Allied Powers (SCAP) was at least as indelible in the economic sphere as in the social and political institutions of Japan during the occupation that followed World War II. SCAP's elaboration and implementation of economic controls provided an educational experience both for itself and for the Japanese. One of the ways in which SCAP educated the Japanese was by demonstrating how economic controls could be implemented by means of statistical reporting requirements. SCAP's complacency in developing foreign trade procedures was prompted partly by the fact that at the start of the occupation trade was practically nonexistent. In attempting to impose excessive international economic controls with inappropriate procedures, and then attempting to keep track of the results, SCAP achieved the worst of both worlds. The control system bogged down and became a drag on Japan's economic recovery, as seen by its poor performance prior to the Korean war.