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| 1949, Jan. 23 |
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| The U.S. representative on the Far Eastern Commission announced the termination of reparation removals to aid Japan's economic recovery. The inflationary tendencies of Japan's economy were gradually being overcome through a strict program of economic stabilization imposed by Gen. MacArthur. | 1 |
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| 1950 |
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| Largely under the impact of the Korean War (See June 25), severe restrictions were imposed on Japanese Communists, most of whose overt activities were suppressed and many of whose presence in labor unions came to an end. In the economic field, the war brought a much-needed increase in Japanese exports. The Korean War provided Japan with an opportunity to produce for the U.S. military, and the economic boom proved critical to the postwar recovery. | 2 |
| The creation of the National Police Reserve of 75,000 officers, to be used against domestic disturbances, was seen by some as the beginnings of a new Japanese army. | 3 |
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| Sept |
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| More than 10,000 prominent figures who had been dismissed at the beginning of the occupation were readmitted to public life. | 4 |
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