Conditions in Japan - Summary for July, 1945. Note by the Secretary (Summery Prepared by the F.O.)

Minister Hirose admitted what Domei called "the threat of vicious inflation hovering over the economic life of the nation." He reminded the people of the situation in Germany after the last war and warned that inflation could be checked only by full cooperation between the Government and the people and that the outlook "permitted of no optimism". He called for a better distribution of commodities, a more flexible price system, drastic measures of taxation and the absorption of money held by certain working classes whose income had been disproportionately increased owing to wartime economic conditions.