Bab 339: Chapter 339: Pull 1 Batch and Hit 1 Batch
Hardy's speech in Japan not only caused a sensation within the country but also garnered significant attention internationally.
**America**
After reading the report in the Global Times, President Johnson smiled and turned to Mike, who was standing next to him. "Hardy went to Japan. It seems like his objectives are quite clear. Do you know what he told me before he left?"
Mike shook his head.
"Hardy said that Japan shouldn't be a burden but also shouldn't become a threat. We can use it as a stepping stone, but we mustn't give it the chance to rise."
"He mentioned that by restricting Japan's industrial capabilities and constantly suppressing it through public opinion, Japan can have money but no real power."
"The first thing he did in Japan was force them to acknowledge their wartime mistakes and mentally subdue them. Hehe, I think he did a great job. In fact, Hardy would make an excellent politician if he were willing."
Mike replied, "Hardy and I discussed Japan. He said we should always be wary of that country. He's fought with the Japanese and witnessed their fanaticism firsthand. Their current obedience is merely a reluctant compromise. If given the chance, their inherent aggression will resurface."
"He also mentioned that if Japan were to rise while the United States fell, the Japanese would certainly seek to retaliate against us. They'll never forget the resentment from the atomic bombings."
Johnson's expression grew colder. He had given the order to drop the bombs, and he suspected that the Japanese harbored a deep resentment towards him personally.
Johnson said gravely, "Therefore, the restrictions must continue, and we must remain vigilant. When I step down from the presidency, I'll make sure to document this in the 'President's Diary' and pass it to my successor."
**Hong Kong**
The Hong Kong Global Times prominently featured Hardy's arrival in Japan as an economic envoy on its front page.
The Japanese Prime Minister, along with all cabinet members and numerous entrepreneurs, came to the airport to welcome Hardy. His delegation was equally impressive, consisting of representatives from the seven major American consortia.
The newspaper highlighted these seven consortia and listed dozens of prominent American companies, collectively controlling assets exceeding $200 billion.
This figure was staggering and hard to fathom for many.
Photographs in the newspaper showed the Japanese Prime Minister bowing to Hardy, who had delivered a speech criticizing Japan for its imperialist and monarchist-driven aggression that led to its current predicament.
The Prime Minister publicly admitted Japan's wartime mistakes for the first time, expressing repentance on behalf of the nation.
The newspaper speculated on the potential changes Hardy might bring as Japan's new "economic czar," following in MacArthur's footsteps.
In Hong Kong, where the Hardy Group had substantial investments, the company was widely recognized. Victor noticed that entrepreneurs treated him with increased respect, which he attributed entirely to Hardy.
**China**
The People's Daily featured the news on its front page.
"Japanese Prime Minister Shigeru Yoshida bowed and apologized, acknowledging the mistake of launching the war and expressing repentance on behalf of Japan. This is the first time a Japanese leader has publicly admitted fault."
The report also introduced Hardy, the economic envoy sent by the United States to Japan, making his name well-known across the country.
**Japan**
At the welcome reception held at the Prime Minister's residence, the atmosphere was noticeably subdued compared to the lavish receptions of the British royal family. The event was attended by men, mainly politicians and businessmen.
Among the guest list were prominent names like Mitsubishi, Sumitomo, Mitsui, Toyota, and Honda.
After Prime Minister Shigeru Yoshida's welcome speech, he invited Hardy to speak. Hardy took the stage with a serious demeanor, and the audience immediately felt the weight of his presence.
Previously, Hardy had spoken at the airport with a smile, but he knew he shouldn't be overly friendly to the Japanese, especially now. It was time to be imposing.
"I bring three directives from President Johnson that I hope you will remember," Hardy began, causing a stir in the audience.
"The first is that Japan will not be allowed to engage in military production or research. This is mandated by the Bostan Convention and the United Nations."
"The second is that Japan must achieve self-sufficiency as soon as possible. Assistance is limited. The United States has already provided over $2 billion in aid over the past four years, and this cannot continue indefinitely."
"The third is that Japan's return to the international community is possible, but it must accept transformation across all sectors—political, economic, financial, military, and cultural. Once Japan aligns with the standards of a civilized world, the United States will support its entry into the United Nations."
If these demands had come from another country, they might have been seen as demeaning. However, the Japanese response was notably positive.
Since Japan's surrender at the end of World War II, the U.S. had enforced strict controls and reforms on Japan, which were even harsher than those imposed on Germany.
While Germany was treated with some degree of leniency, Japan was dealt with more ruthlessly, with the aim of eradicating its military potential.
MacArthur had offered no hope, but Hardy's third point gave Japan a glimpse of the future.
A glimmer of hope, however faint, motivated people to strive towards it. Hardy's words were intended to encourage Japan to believe in the possibility of reform and eventual freedom.
Hardy continued, "As I mentioned at the airport, Japan's future development should focus on an 'export-oriented economy,' with an emphasis on supporting civilian production."
"The United States has the largest market in the world and requires numerous products. Japanese companies should aim their efforts at the U.S. market. In summary, produce what the U.S. needs."
"Given that the U.S. military and heavy industries are globally dominant, it's not wise for Japan to pursue these sectors. Instead, Japan should focus on daily necessities and light industries."
"Daily necessities include clothing, footwear, glass, ceramics, furniture, appliances, toys, fishing gear, cameras, film, musical instruments, medicine, cosmetics, and more."
"Light industries encompass auto parts, machine components, electronic parts, precision instruments, construction machinery, factory equipment, and home appliances."
Many understood that Hardy aimed to transform Japan into an industrial base and support factory for the United States.
This was promising news for Japan's consumer goods companies, as their factories were nearly inactive. Restoring these factories could alleviate their current plight.
"You also know that we cannot support every company in Japan. Our plan is to back selected companies while allowing the rest to develop freely."
The entrepreneurs present were anxious.
Support was desirable, but the prospect of being left out was daunting. Being abandoned meant potential collapse.
The situation was tense, with everyone holding their breath. Being supported meant survival; being excluded could lead to ruin.
Hardy's intent was to instill a sense of urgency. With such pressure, it was easier to maintain control.
For those unwilling to comply, Hardy's strategy was straightforward: support select enterprises and let the rest perish.
Although some recognized Hardy's strategy, there was no way to counteract it. Knowing the scheme didn't change the reality of following it.
The choice was clear: submit or face extinction.
Hardy concluded, "Tomorrow, at the Empire Hotel, the Seven Consortia will begin negotiations with Japanese companies. Companies interested in partnering with the Seven Consortia should bring their corporate reports."
This announcement stirred the big entrepreneurs present. Cooperating with American companies offered a chance at survival, while non-cooperation likely meant closure and bankruptcy.
Some might consider selling to a U.S. consortium, though that option seemed increasingly distant.
Hardy stepped off the podium, and the reception officially began.
In reality, the event was more a gathering for discussing business and economics than a true social reception. The absence of female attendees and the focus on business discussions reflected its nature.
Members of the seven consortia engaged with Japanese entrepreneurs, discussing potential acquisitions and partnerships.
Prime Minister Shigeru Yoshida, accompanying Hardy, raised a glass of red wine in a toast. After sipping the wine, Yoshida respectfully addressed Hardy:
"Special Envoy Hardy, Japan's food supply is currently only sufficient for minimal sustenance. Many are subsisting on potatoes, sweet potatoes, and bran. Could you please discuss with President Johnson the possibility of increasing food aid?"
Bab 340: Chapter 340: A House for a Woman
After Japan's surrender, the United States imposed numerous controls on the country, including strict limitations on food supplies. Japan, with its small land area and large population, has historically struggled with food shortages. The situation worsened after Japan's military campaigns plundered vast amounts of resources from China and Southeast Asia, leaving the country in a dire state.
In the aftermath of Japan's defeat, the U.S. implemented a food aid program, but it was insufficient to meet Japan's needs. The country faced severe food shortages due to limited domestic production and a rapidly growing population, leading to widespread starvation.
Hardy was aware of the situation. While considering the 570 million aid fund he had brought, he knew that this money would not be used for purchasing food for Japan. Instead, Hardy believed in addressing the root causes of Japan's economic problems.
"Prime Minister Yoshida, solving problems effectively requires tackling them at their root," Hardy said. "What do you think?"
"Indeed," Yoshida responded, not entirely understanding Hardy's implication but agreeing with the sentiment.
"Japan's issues are fundamentally economic. Restoring business operations and creating jobs will naturally alleviate social strain. Mere relief efforts will not solve the problem and may even foster dependency," Hardy explained.
"By revitalizing Japanese companies, they can produce goods for the U.S. market. This will enable Japan to eventually import more food," he added.
Yoshida smiled, appreciating Hardy's approach.
The cocktail party concluded, and the delegation returned to the Imperial Hotel to prepare for the next day's important task: the acquisition of Japanese companies.
The following morning, numerous Japanese entrepreneurs visited the Imperial Hotel, presenting their business reports to representatives from the seven major American consortiums. Companies in textiles approached the Texas consortium, while steel companies sought out Morgan, Rockefeller, or Mellon consortiums. Petrochemical firms targeted Rockefeller, known for its dominance in the oil industry.
Electrical appliance companies such as Toshiba, Hitachi, Panasonic, and Sharp also approached the Hardy Group, hoping for cooperation. Hardy himself did not get involved directly; instead, the Vice President of the Hardy Group managed these interactions.
Under Hardy's instructions, the consortiums were to collectively acquire shares of these companies, ensuring no more than 40% remained in Japanese hands. Those who refused to cooperate would face support for their competitors, potentially leading to their downfall.
The seven consortia had reached an agreement to adopt a cross-shareholding model for their acquisitions, concealing their true control behind a web of Cayman Islands companies. This strategy aimed to monopolize Japan's economy while preventing Japanese companies from negotiating with individual consortiums to inflate their value.
Hardy was invited by the Japanese Minister of Foreign Affairs to visit a traditional Japanese house, designed to impress him. The house, built in 1884 and featuring both Eastern and Western styles, was meant to impress Hardy, as General MacArthur had resided there.
Inside, Hardy was introduced to a young woman, Miss Sasaki Fumiko, a 17-year-old student and potential assistant and interpreter. The Minister of Foreign Affairs hoped that the presentation of the house and the young woman would endear Hardy to Japan.
However, Hardy declined the offer. "I prefer Western-style accommodations. The Hardy Group has already purchased a Western-style villa for me," he said, expressing his disinterest in the house and the young woman.
The Minister of Foreign Affairs was taken aback by Hardy's response. The plan to use the house and the woman as a bribe had backfired. Hardy's indifference and refusal demonstrated his determination not to be swayed by such tactics.
Sasaki Fumiko, disheartened by Hardy's lack of interest, felt rejected. Despite her efforts to impress Hardy, she was left disappointed.
Later, Duncan reported to Hardy about the food situation in Japan. There were several black markets in Tokyo where food prices were inflated, controlled by various gangs. A Wisconsin-based food trading company, owned by MacArthur's cousin, was behind these markets, secretly exporting food to Japan and bypassing official state channels.
A smile crept across Hardy's face. "Use secret channels to inform Henry about this. Have him investigate thoroughly, including the smuggling channels and tax evasion."
Duncan acknowledged the task and left.
As Hardy enjoyed a cigar, he reflected on the situation with a sense of amusement. The attempt to manipulate him with a house and a woman had failed. He looked forward to seeing how MacArthur would respond to the unfolding events, finding the situation quite entertaining.
Bab 341: Chapter 341: Economic Rescuer
"Boss, the president of Toyota Motor wants to see you. He's waiting right outside the door," Hardy's assistant reported.
Hardy was puzzled. He wasn't directly involved in the acquisitions; that task was primarily managed by the consortiums. With 600 or 700 large companies available for acquisition, if they all came to him, he would be overwhelmed.
"Is there a specific reason for his visit?" Hardy asked.
"He mentioned that he wants to discuss the future of Japanese cars with you privately," the assistant replied.
Toyota Motor was a leading company in Japan in later years. Hardy considered this and decided to meet with him.
"Let him in," Hardy instructed.
The assistant left and soon returned with a middle-aged man. Hardy recognized him as Kiichiro Toyota, the head of Toyota Motor, whom he had met at the welcome party.
"Hello, Mr. Hardy. I hope I'm not intruding," Kiichiro Toyota said, bowing deeply.
Toyota, in his fifties and wearing glasses, was still energetic and enthusiastic.
"Please have a seat. I'm not directly handling the acquisitions—those are managed by the consortiums. If this is about the acquisition, you should discuss it with them," Hardy said.
Toyota sat on the sofa, maintaining a respectful posture, and explained, "Mr. Hardy, I'd like to give you an overview of Toyota and the current state of the Japanese automobile industry. I believe it might help you with your plans."
Hardy nodded, "Go ahead."
Toyota began by describing Toyota's history. The company initially operated as a textile business and sold it to the British Pratt company in 1929. They then ventured into the automobile industry, which, like the entire Japanese auto industry, began by imitating European and American models.
During World War II, Toyota received some orders but still fell behind other major Japanese auto companies in terms of production. After the war, Toyota faced penalties for its military-related activities, though it avoided being shut down.
Previously, giants like Mitsubishi, Isuzu, Nissan, and Subaru dominated the Japanese auto industry. These companies, being part of larger conglomerates, had significant resources. Many were seized by the US military, and the 300 Japanese military enterprises acquired by Hardy included several auto factories.
Toyota Kiichiro expressed concern that if American consortiums established car factories in Japan, Toyota would struggle to compete. Hardy's plan to focus on daily necessities and light industry further worried him, as it seemed Toyota would only serve as a support manufacturer for American factories.
Kiichiro Toyota proposed that if Toyota could merge with several other seized factories, it could quickly become Japan's largest car manufacturer. He offered 40% of Toyota's shares in exchange for $2 million and technical support.
Hardy considered the offer and replied, "Those factories have their own roles. As for Toyota, we weren't planning to retain it. However, if you agree to let other companies buy shares in Toyota and retain only 30% for your family, I can arrange $3 million in funding and an additional $3 million in low-interest loans. You would also gain access to advanced American manufacturing technology and production lines."
"Toyota must focus solely on car and van production and avoid any involvement in military-related categories."
"If you accept these conditions, discuss them with the delegation. They will handle the specifics. If not, you can operate independently."
Toyota Kiichiro, recognizing Hardy's firm stance, stood and bowed again.
"I will consider your proposal, Mr. Hardy."
Hardy had the assistant escort Kiichiro Toyota out and instructed him to inform the delegation of his decision.
The $3 million investment and low-interest loans were part of the $570 million aid fund Hardy had brought. This fund was intended for such purposes.
Hardy had empowered the delegation to offer American technology and support funds to Japanese companies accepting the consortiums' acquisition terms. This approach was a major incentive for many companies, which were struggling and in desperate need of funds, low-interest loans, and access to American technology.
The seven major consortiums' support made it clear to Japanese companies that compliance was preferable to resistance. The appeal of the financial aid and technology was strong.
In just over a month, the delegation had acquired more than 300 companies. Hardy issued $350 million in low-interest loans to these enterprises, helping them resume production and rehire laid-off workers. This revival of industry solved employment issues for hundreds of thousands.
The Japanese workforce, known for its diligence, quickly adapted, and factories began operating at full capacity. In contrast to the frequent strikes in American factories, Japanese workers worked hard to avoid being fired.
Hardy reestablished a shipping company in Japan, becoming the largest shipping entity there. He completed his global shipping network, and the factories in Japan began providing parts for American factories. These parts, excluding transportation costs, were much cheaper than those produced in the U.S.
As a result, Japanese companies experienced a significant turnaround. A Japanese newspaper published an article highlighting Hardy's impact, praising him as Japan's economic savior for the progress achieved in just fifty days.
MacArthur, stationed in Osaka, was displeased by the article. His previous praise from the Japanese seemed overshadowed by Hardy's acclaim, which irritated him.
"Economic savior? That's absurd. Without my military presence and previous efforts, he wouldn't have achieved such results," MacArthur muttered.
MacArthur was puzzled. Despite his efforts to contain the military factories, Hardy had barely interacted with him, instead focusing on acquiring Japanese companies. MacArthur had intended to offer Hardy a lower position to acknowledge his role and provide the factories, but Hardy's minimal contact left him in an awkward position.
MacArthur realized that Hardy's success, if it led to offense against the seven consortiums, could have repercussions for him. Yet, he was reluctant to seek out Hardy directly, fearing it would make him appear weak.
In the end, MacArthur found himself in a challenging situation, unsure how to navigate the evolving dynamics.
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