Cold War - US reconstruction of Japan

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  • US Reconstruction of Japan
    • Economy
      • increased regulation of foreign exchange and trade
      • a balanced budget
      • stricter lending criteria
      • wage controls
      • a more tax efficient system
      • Japan joined the General Agreement of Tariffs and Trade (GATT)
    • Military
      • USA plans for Japanese Air Force
      • Secretary of State wanted larger Japanese ground force
      • National Safety Agency 1952 - 110,000 ground troops and 7600 maritime personnel
      • USA fund $240 million in military
      • Driven by the threat of communism
      • 1954 - agreed 140,000 self-defense force should be created
      • caused some internal instability: pro & anti rearmament protests
    • Politics
      • USA wanted to stop the spread of communism
      • Key right-wing parties were restored
      • MacArthur, Supreme Commander for Allied Powers (SCAP)
        • got directions from Washington DC on leadership
    • International Relations
      • US - Japan  bilateral Security Treaty (1951)
        • USA could: Use military base in Japan; Control Japanese Island; Use military force; Stop outreach
      • USA wanted to contain communism
      • 1951 San Francisco Peace Treaty
        • recognised Japan's sovereignty
        • Japan has to renounce claims on nearby territories


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