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Says he: "When they came to me to manufacture airplanes, I knew things were hopeless." V-J day found the Japanese economy prostrate. U.S. fire bombings—so numerous that they were more devastating to the wood-and-paper cities than atomic bombs—left 80% of Japan's industry a charred rubble; the shell-shocked populace foraged for weeds to keep from starving. When General MacArthur demanded 50 cars to move his staff to Tokyo, the Japanese government could not find that many functioning autos in the entire Tokyo-Yokohama area. But in the long run, defeat and devastation proved the best thing that could have happened to Japanese industry. Forced to rebuild with modern plants, Japan's businessmen vastly increased their ability to compete abroad. And the downfall of the militarists meant that the Japanese economy was no longer made to play armorer. With the outbreak of the Korean war and the consequent U.S. decision that Japanese industry should be treated as a valuable free world asset instead of a threat to world peace, the way was clear for Japanese businessmen to build a new Japan.
Economic Explosion. In the past decade, Japan's steel industry has poured $1.3 billion into construction of some of the world's most automated plants, has increased its output 480%. Last year, without benefit of military spending —Japan still produces no missiles or heavy military equipment — Japanese steel production hit 27.8 million tons, enough to oust Britain as the world's fourth largest steel producer. In shipbuilding, by adopting the most modern techniques and guaranteeing quick delivery, Japan nosed Britain out of the No. 1 spot six years ago. The Japanese chemical industry, riding the crest of a demand for chemical fertilizers that has helped make Japan self-sufficient in rice, has more than doubled its sales (to $3.2 billion) in the past six years, is now going heavily into petro chemicals. Under the protection of stiff tariffs, even the long-struggling Japanese auto industry has increased its sales —virtually all domestic — from $93 million to $1.3 billion since 1951.
In this mighty surge, Japanese industry produced a managerial class that can hold its own against any in the world. Among its leaders: > Shigeo Nagano, 61, stocky, hardheaded president of Fuji Iron & Steel Co., who expanded his company at such a pace — in eight years he increased Fuji's steel production 300% — that he gave growth fever to all of Japanese industry.
> Toyota Motor's Chairman Taizo Ishida. 73, patriarch of Japan's auto industry, who in a single year turned Toyota away from near bankruptcy toward prosperity as Japan's biggest automaker.
> Ex-Insurance Man Taizo Ishizaka, 75, who has led Tokyo Shibaura Electric Co. (Toshiba) to a sizzling 35% a year growth rate, is Matsushita's biggest competitor in appliances and Japan's largest producer of heavy electrical equipment.
> Shigeki Tashiro, 71, a zaibatsu executive "purged" by the U.S. Occupation, who came back to make Toyo Rayon Japan's largest synthetic fiber maker and a major earner of foreign exchange.
> Kaneo Niwa, 66, chairman of Mitsubishi Shipbuilding Co., who aggressively rebuilt his company's shipyards at atom-bombed Nagasaki into the world's largest.