ABSTRACT
This chapter confines its attention to policies supporting specific industries, that is, industry-supporting policy within Supreme Commander for the Allied Powers (SCAP's) economic policies. Meanwhile, from the outset of the Occupation, the future of the cotton spinning industry was full of uncertainty which arose partly from the industry's adaptation to the controlled economy of wartime, and partly from SCAP's reforms. Active military operations, especially from the outbreak of the Sino-Japanese War in 1937 onwards, required the Japanese government to transform the usual peacetime economy into a wartime-controlled economy. The cotton spinning industry had long been one of the main sources of foreign currency earnings for Japan. The three main raw cotton agreements namely: the Commodity Credit Corporation (CCC) raw cotton agreement, the Occupied Japan Export-Import Revolving Fund (OJEIRF), and the Public Law 820 of the 80th Congress (PL820) resembled each other in giving SCAP a heavy responsibility to reimburse the loans to buy American raw cotton in dollars.
