American Multinationals and Japan: The Political Economy of Japanese Capital Controls, 1899-1980 (Harvard East Asian Monographs)

400 Pages·1992·26.388 MB·English

by  Mark Mason

HARVARD EAST ASIAN MONOGRAPHS
154
American Multinationals and Japan
The Political Economy of Japanese
Capital Controls, 1899-1980
Subseries on the History of
Japanese Business and Industry
Japan's rise from the destruction and bitter defeat of World War I1 to
its present eminence in world business and industry is perhaps the
most striking development in recent world history. This did not
occur in a vacuum. It was linked organically to at least a century of
prior growth and transformation. To illuminate this growth a new
kind of scholarship on Japan is needed: historical study in the context
of a company or indmtry of the interrelations among entrepreneurs,
managers, engineers, workers, stockholders, bankers, and bureau-
crats, and of the institutions and policies they created. Only in such
a context can the contribution of particular factors be weighed and
understood. It is to promote and encourage such scholarship that this
series is established, supported by the Reischauer Institute of Japa-
nese Studies and published by the Council on East Asian Studies at
Harvard.
Albert M. Craig
American Multinationds and Japan
The Political Economy of Japanese
Capital Controls, 1899-1980
MARK MASON
PUBLISHED BY
COUNCIL ON EAST ASIAN STUDIES
HARVARD UNIVERSITY
Distributed by
Hamard University Press
Cambridge, Massachusetts, and London
1992
O Copyright 1992 by
The President and Fellows of
Harvard College
Printed in the United States of America
The Council on East Asian Studies at Harvard University publishes a mono-
graph series and, through the Fairbank Center for East Asian Research and the
Reischauer Institute of Japanese Studies, administers research projects designed
to further scholarly understanding of China, Japan, Korea, Vietnam, Inner
Asia, and adjacent areas.
Library of Congress Cataloging-in-Publication Data
Mason, Mark, 1955-
American multinationals and Japan : the political economy of
Japanese capital controls, 1899-1980 / Mark Mason.
p. cm. - (Harvard East Asian monographs ; 154. Subseries on
the history of Japanese business and industry)
Includes bibliographical references and index.
ISBN 0-674-02630-6
1. Investments, American-Japan. 2. Corporations, American-
Japan-Case Studies. 3. International business enterprises-Japan.
4. Japan-Commerical policy. I. Title. 11. Series: Harvard East
Asian monographs ; 154. III. Series: Harvard East Asian monographs.
Subseries on the history of Japanese business and industry.
HG5772.M34 1992
338.8'8973052-dc20
92-9934
ClP
To my parents

Acknowledgments
It is truly a pleasure to acknowledge the contributions of numerous -
scholars who provided counsel and support throughout the succes-
sive stages involved in the preparation of this manuscript. At Har-
vard, I wish to thank in particular Professor Albert Craig of the
History Department, my advisor in the doctoral program at the
Graduate School of Arts and Sciences, together with Professors
Alfred Chandler of the Graduate School of Business Administration,
Henry Rosovsky of the Economics Department, and Ezra Vogel of
the Sociology Department. I owe an especially great debt of gratitude
to Professor Dennis Encarnation of the Graduate School of Business
Administration, whose professional and personal generosity have
been enormous. Elsewhere, Professors Chalmers Johnson, Richard
Samuels, Udagawa Masaru, Mira Wilkins, Kozo Yamamura, Yama-
zaki Hiroaki and Yui Tsunehiko deserve special thanks for their con-
sideration.
vii
Acknowledgments
Countless individuals in business, government and elsewhere also
contributed greatly to the completion of this work. I would like to
articular
thank in James Abegglen, James Adachi, Richard Agnich,
Amaya Naohiro, And6 Kaoru, Ayukawa Yaichi, Robert Baker,
Richard Bechtold, James Birkenstock, Daniel Blake, Barton Brown,
Kenneth Brown, William Brown, J. Fred Bucy, John Callander, John
Christensen, William Conner, William Diehl, Sven Dithmer, Wil-
liam Dizer, Dagauchi Masato, Edo Hideo, Milfred Ettinger, Joseph
Emory, Richard Finn, Darlene Flaherty, Fujiyama Kakuichiro,
Robert Galvin, Laurence Goldfarb, Donald Gorham, Gota Tatsuro,
Gota Takeshi, Bernard Grossmann, Hama Shatar~R ichard Heim-
lich, Hiramatsu Morihiko, Richard Hodgson, Lester Hogan, Inuta
Akira, Misha Kadich, Kashiwagi Yiisuke, Katsube Toshio, Kaya
Masao, Kiuchi Nobutane, Komura Tsuneo, Stephen Levy, A1 Loen-
ing, John Loughran, Sally Merryman, Anne Milbrooke, Philip Moo-
ney, Morishita Keizb, Frank Moss, Nagata Takashi, Nakai Sei,
Nakaya Ryiihei, Nakayama Takao, George Needham, Norman Neu-
reiter, Roger Nichols, Robert Noyce, Theodore Peightol, Robert Per-
kins, Max Post, Hans Pringsheim, Richard Rabinowitz, Robert
Reilly, Edwin Reischauer, James Roche, William Roche, Edward Rog-
ers, Sakurai Makoto, Will Scott, Mark Shepherd, Shindii Isao, Albert
Sieg, Mary Smith, Suzuki Kanemitsu, Takahashi Korenobu, Takana-
shi Nisaburii, Takasusuki Toshio, Takenaka Homare, Tokuoka
Takaki, Philip Trezise, Ushijima Hiromi, William van Zandt, Cant-
well Walsh, Watanabe Takeshi, William Weisz, Elmer Welty, William
Wilkinson, George Wise, Yamaguchi Emi, Yanase Jira, and Yuasa
Kybz6.
For their research assistance in Japan, the United States and Eur-
ope, I wish to acknowledge the excellent work of Aoki Nobuko,
Hari Avula, Kaji Katsuhiko, Kat6 Hidenaka, Nakazawa Hideko,
Jerome Del Pino, Rachel West, Suzuki Yoshimi, and Yoshimoto
Utsuru.
Numerous institutions also offered valuable assistance. The follow-
ing organizations provided significant financial support during one
or more stages of the project: the Graduate School of Arts and
Sciences, Harvard University; the Harvard Academy for International
.. .
Vlll
Acknowledgments
and Area Studies, Harvard Univeristy; the Japan Foundation; the
Edward A. Kilroy Research Fund at the School of Organization and
Management, Yale University; and the United States Department of
Education.
In addition, the following institutions provided other types of assis-
tance without which this history could not have been told: the Amer-
ican Chamber of Commerce in Japan; American Telephone & Tele-
graph; the British Chamber of Commerce in Japan; the Center for
International Affairs, Harvard University; La Chambre de Com-
merce et D'Industrie Fran~aised u Japon; Coca-Cola; Deutsche Indus-
trie und Handelskammer in Japan; Ford Motor Company; General
Motors; Hagley Museum & Library; the Institute of Social Sciences,
University of Tokyo; IBM Japan; the International House of Japan;
the Japan Broadcasting Corporation; the Economic History Section
of the Ministry of Finance, the Diplomatic History Section of the
Ministry of Foreign Affairs, and the National Diet Library-all of
the Government of Japan; Motorola; National Cash Register; Otis
Elevator; Texas Instruments; the Department of Commerce, the
Department of State, the Library of Congress, and the National
Archives-all of the Government of the United States; United Tech-
nologies; and Victor Company of Japan.
I am grateful to the School of Organization and Management, Yale
University for critical support during the final stages of the research
and publishing process.
It is a privilege to recognize the contributions of Florence Tre-
fethen, Executive Editor of Harvard University's Council on East
Asian Studies, for her expert work in editing and otherwise guiding
the manuscript through to its completion.
I wish to thank Simon and Nancy O'Shea for their generosity and
consideration through many years of friendship.
Finally, I would like to thank my family. My brother Peter and my
late uncle Harold contributed significantly to the eventual comple-
tion of this work. My wife Roslyn provided enthusiastic support and
constant encouragement. And it is with particular appreciation that
I acknowledge the support of my parents Robert and Abelle, to
whom this book is dedicated.