New+Order+in+Japan+Reading+Section+Four+A+Controlled+Economy

> (machine tools, oil, materials in steel alloys)came from other countries. the only option was to balance supplyand demand by a system of planning and controls
 * 1) ship building was an industry that recovered greatly from 106 000 tons in 1929-33 to 259 000 tonnes in 1934-7; at the same level of WW1 production which suggests that the Japanese were building a force for war.
 * 2) The value of the Yen fell which meant that the Japanese imports were made more expensive and exports less profitable. The Japanese began to look for new markets for trade and sources of supply. By 1934-6 nearly 60% of Japan's exports went to South East Asia and 50& of imports came from that area.
 * 3) The expansion of heavy industry, in particular electrical and machinery.
 * 4) The victory of the Control faction in the army, commited to a programme of military modernization resulted in further economic problems
 * 5) increased military expenditure from 9% of gross national expenditure in 1933-37 to 38% in 1938-42
 * 6) Territorial expansion on the Asian mainland gave Japan access to coal and iron but much of what was required
 * 1) Late in 1937 controls were instituted over capital and foreign trade for the purpose of giving priority to military requirements.
 * 2) The National mobilization law of April 1938 allowed for this by regulating wages, providing direction of labour and materials,the government operated key industries.