Government-Business Relations in Japan: the Deliberative Councils
Total Page：16
File Type：pdf, Size：1020Kb
Government-business relations in Japan: the Deliberative Councils (Shingikai) and the iron and steel industry, 1916 - 34 Submitted in partial fulfilment of the degree of Doctor of Philosophy at the London School of Economics and Political Science Peter von Staden Department of Economic History London School of Economics UMI Number: U187696 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Disscrrlation Publishing UMI U187696 Published by ProQuest LLC 2014. Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 Tm£S £S F ^ 1 5 7 Dissertation Abstract Government-business relations in postwar Japan have received a considerable amount of attention, as also the often associated scandals and back room dealing in Japan have been a recurrent and topical issue in academic circles and the popular press. Yet, despite this attention, scholarly and otherwise, much less research has been undertaken on these issues in Japan before the Pacific War. It is within this context that my Ph.D. dissertation “Politico-business relations in Taisho and early Showa Japan: An Examination of the Amalgamation of the Iron and Steel Industry, 1916-1934” is set. Employing the detailed records of the shingikai or. Councils of Deliberation, discussions between business and government are traced to determine, in the first instance, the success of business in realizing its aims. These findings are located within the larger conceptual framework of the overt and covert interaction between government and business in policy formulation. An important historical perspective is therefore offered by the thesis in examining this case study, providing analysis of the historical continuum frequently left out in assessments by commentators on today’s situation. The findings are that the shingikai forum was perceived by business as a place its views could be expressed and an opportunity to influence policy outcomes. The factors which determined the extent to which business could realize its goals were, among others, the political and economic circumstances in which the actors found themselves. Evidence indicates that business viewed itself as an independent actor in its negotiations with government. As both government and business were important stakeholders in the iron and steel industry, their interests did not always coincide which was observed, at least in one instance, to have led to heated debates and the amendment of the bill at hand. This finding challenges the prevailing view in the literature that theshingikai was co-opted by government to achieve its own policy ends. Table of Contents List of Tables VI - V ll Acknowledgements V lll - IX Chapter 1 Introduction 1 1 . Preamble 1 2. How the Literature Views Post-war Government- 2 business Relations 3. Survey of Pre-war Government-business Relations: 29 Historical Legacy, Political Merchants and Zaibatsu 4. Shift to Formal From Informal Lines of 49 Communication 5. Stability and the Establishment of a Government and 60 Business Relationship 6 . The Structure of the Iron and Steel Industry 63 7. Non-constitutional Formal Bodies 75 8. Formal Framework for Decision-making 83 9. Shingikai 99 10. Discussion of Sources 113 11. Outline of Chapters 118 Chapter 2 The War Years 1916-1917 121 1 . Historical Background 123 2. The Position of the Industrial Club of Japan 133 111 3. The Lower House debates 137 4. The Upper House debates 148 5. Why 5250 Tons and to Whose Benefit? 152 6. The Background of the Committee Members 153 7. Conclusion 162 Chapter 3 Coping With The Immediate Post-war Economic 165 Chaos 1919-1921 1. Historical Background 168 2. Necessity and Reasons for the Tariff Protection in 175 Japan’s Iron and Steel Industry 3. Recommendations Concerning the Promotion and 179 Protection of the Iron and Steel Industry 4. Temporary Investigation Committee on Fiscal Policy 192 and the Economy 5. Temporary Investigation Committee on Fiscal Policy 208 and the Economy - Plenary Session 6. Temporary Investigation Committee on Fiscal Policy 210 and the Economy - Consultation Number 3 7. Temporary Investigation Committee on Fiscal Policy 214 and the Economy - Record of the Special Committee on Consultation Numbers 3 & 4 8. Temporary Investigation Committee on Fiscal Policy 224 and the Economy - Consultation Numbers 3 & 4 9. Proposal for the Revision of Tariff Rate Law and the 229 IV Proposal for the Revision of the Iron and Steel Business Promotion Law 10. Conclusion 244 Chapter 4 The Long Road to Amalgamation 1921-1934 249 1. Historical Background 253 2 . The Structure of the Shingikai Meetings 269 3. The Industrial Club of Japan 269 4. Tariff Meetings of January and March of 1926 274 5. The Revision of the Iron and Steel Industry Promotion 286 Law of 1926 6 . Tariff Meetings of June 1932 298 7. Japan Steel Corporation Bill 308 8. Conclusion 313 Chapter 5 Conclusion 318 1 . How were the Shingikai Viewed by Business? 318 2. Judging Business Expectations 321 3. Characterising Government and Business Relations in 323 the Taisho and early Showa Period Bibliography 332 Appendices 346 List of Tables 2.1 Estimated Pig Iron Demand and Production Volumes 2.2 Estimated Steel Materials Demand and Production Volumes 2.3 Committee Meetings 2.4 Market Shares in Iron and Steel in 1918 2.5 House of Peers Members on the Sub-committee 2.6 House of Representatives Members on the Sub-committee 3.1 Affiliates 3.2 The Production of Domestic Iron and Steel During the First World War 3.3 List of Committee Members 3.4 Outline of Temporary Investigation Committee Meetings 3.5 Background of Temporary Investigation Committee on Fiscal Policy and the Economy Members 3.6 Tariff rates under the Anglo-Japanese Commercial Treaty 3.7 Detailed Comparison of Cost in 1922 of Pig Iron as Calculated by Specific Duty and Ad Valorem Tariff Rates 3.8 Comparison of Cost of Indian Pig Iron as Calculated by Specific Duty and Ad Valorem Tariff Rates 3.9 Comparison of Cost of Indian Pig Iron Including Tariff Rate and Cost of Transportation 3.10 Iron and Steel in 1918 3.11 Outline of Meetings on the Iron and Steel Business Promotion Law and Tariff Rate Law VI 4.1 Comparison of Cost of Pig Iron as Calculated by Various Tariff Rates 4.2 Outline of 1926 Tariff Meetings 4.3 Outline of the Meetings on the Revision of the Iron and Steel Industry Promotion Law of 1926 4.4 Subsidy and Profit Assessment of Integrated Firms 4.5 Outline of 1932 Tariff Meetings 4.6 Revised 1932 Tariff Schedule for Iron and Steel 4.7 Outline of the Meetings on the 1933 Japan Steel Corporation Bill Vll Acknowledgements This dissertation is the culmination of more than a decade of postgraduate study undertaken at universities in Canada, Japan and England. My indebtedness to those who have helped me reach this point, whether they be academics, language teachers or friends is enormous, and I cannot hope here to express adequately my gratitude for the kindness, guidance and support that I have received over the years. I started this journey as a MA student at the University of New Brunswick, Canada, where I began to realize what I could do. Later, during my early years of study in Japan, I had the good fortune to be introduced to Professor Akira Amakawa and later Professor Hyuck-Soo Yoo, both of Yohohama National University. Their support and guidance helped steer me through a difficult and critical point in my MA at YNU. The ensuing period in the Department of Economic History at the London School of Economics as a Ph.D. student has been deeply formative. O f great importance as well, was my year of research at Tokyo University, arranged by Professor Wada Kazuo. Under the supervision of Professor Takeda Haruhito, I had the good fortune of being introduced to Professor Okazaki Tetsuji, who graciously shared his wealth of knowledge on Japan’s iron and steel industry and shingikai. Through the good offices of Professor Yui of the Japan Business History Institute in Tokyo, I was given access to the historical records held at the Industrial Club of Japan. Professor Nagura Bunji of Ibaraki viii University, also, most graciously, opened his personal library to me. Long before I had serious thoughts of doctoral study, I attended an evening reception for a military history symposium, at Royal Military College, Kingston, where Professor Hamish Ion introduced me to Dr. Janet Hunter. We chatted at length and, upon leaving, she gave me her business card. Throughout my years in Japan, I carried that card. When, some time later, I set my sights on doing a Ph.D. in the United Kingdom, I returned to our conversation and sought to work under Janet. She soon saw my intellectual curiosity and kept my feet on the ground. My gratitude to Janet is deep and heart-felt. This dissertation would not have been realized had it not for the continued support of my father and Lindi. They have stood by me over the years - my debt is more that words can express. Had Ed and Jane not have lived in Paris and provided me my ‘continental escape’, this dissertation would have been far more arduous. Also, to Alan, for the many nights of sushi and trans-oceanic computer rescue service - thanks mate! The research on which this thesis is based was generously supported by the Japan Foundation Endowment Committee, the Central Research Fund of the University of London, and the Michael Postan fund.