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Postwar Japan
The elections in 1952 kept the conservative Liberal party and Premier Shigeru Yoshida in power. In Nov., 1954, the Japan Democratic party was founded. This new group attacked governmental corruption and advocated stable relations with the USSR and Communist China. In Dec., 1954, Yoshida resigned, and Ichiro Hatoyama, leader of the opposition, succeeded him. The Liberal and Japan Democratic parties merged in 1955 to become the Liberal Democratic party (LDP). Hatoyama resigned because of illness in 1956 and was succeeded by Tanzan Ishibashi of the LDP. Ishibashi was also forced to resign because of illness and was followed by fellow party member Nobusuke Kishi in 1957.
In the 1950s Japan signed peace treaties with Taiwan, India, Burma (Myanmar), the Philippines, and Indonesia. Reparations agreements were concluded with Burma (Myanmar), the Philippines, Indonesia, and South Vietnam, with reparations to be paid in the form of goods and services to stimulate Asian economic development. In 1951, Japan signed a security treaty with the United States, providing for U.S. defense of Japan against external attack and allowing the United States to station troops in the country. New security treaties with the United States were negotiated in 1960 and 1970. Many Japanese felt that military ties with the United States would draw them into another war. Student groups and labor unions, often led by Communists, demonstrated during the 1950s and 1960s against military alliances and nuclear testing.
Prime Minister Kishi was forced to resign in 1960 following the diet's acceptance, under pressure, of the U.S.-Japanese security treaty. He was succeeded by Hayato Ikeda, also of the LDP. Ikeda led his party to two resounding victories in 1960 and 1963. He resigned in 1964 because of illness and was replaced by Eisaku Sato, also of the LDP. Sato overcame strong opposition to his policies and managed to keep himself and his party in firm control of the government throughout the 1960s.
Opposition to the government because of its U.S. ties abated somewhat in the early 1970s when the United States agreed to relinquish its control of the Ryukyu Islands, including Okinawa, which had come under U.S. administration after World War II. All of the Ryukyus formally reverted to Japanese control in 1972. In that same year, Sato resigned and was succeeded by Kakuei Tanaka, also a Liberal Democrat. For his efforts in opposing the development of nuclear weapons in Japan, Sato was awarded the Nobel Peace Prize in 1974. Later that year, Tanaka resigned and was replaced as prime minister by Takeo Miki, another Liberal Democrat. Miki, who became embroiled in a scandal over his personal finances, was replaced by Takeo Fukuda. Though Fukuda was considered to be an expert in economic policy, he had difficulty in combating the economic downturn of the late 1970s. He was replaced by Masayoshi Ohira, who died in office in 1980 and was replaced by Zenko Suzuki.
In 1982, the more outspoken Yasuhiro Nakasone took office. He argued for an increase in Japan's defensive capability, extended his second term by an extra year, and appointed his own successor, Noboru Takeshita. The terms of both Takeshita and his replacement, Sosuke Uno, were cut short by influence-peddling and other scandals that shook the LDP and caused a public outcry for governmental reform. In the general election of 1989, the LDP lost in the upper house of the parliament for the first time in 35 years; nonetheless, LDP president Toshiki Kaifu became prime minister later that year. He drew much criticism for pledging $9 million to the United States for military operations in the Persian Gulf, and in 1991 he was succeeded as prime minister by Kiichi Miyazawa.
After the LDP split over the issue of political reforms in 1993, the Miyazawa government fell. None of Japan's political parties managed to win a majority in the subsequent elections. An opposition coalition formed a government and Morihiro Hosokawa became prime minister. Hosokawa resigned in 1994 and was succeeded by fellow coalition member Tsutomi Hata, who resigned after just two months in office. In June, 1994, Tomiichi Murayama was named prime minister of an unlikely coalition of Socialists (now the Social Democrats) and Liberal Democrats, thus becoming the nation's first Socialist leader since 1948.
During 1995, Japan was shaken by two major disasters. The worst earthquake in Japan in more than 70 years struck the Kobe region on Jan. 17, killing more than 6,000 people. On Mar. 20, lethal nerve gas was released through plastic bags left in the Tokyo subway system by members of the Aum Shinrikyo religious group; 12 people were killed, and about 5,000 others suffered ill effects.
Murayama resigned as prime minister early in 1996 and was succeeded by LDP leader Ryutaro Hashimoto. In 1997, Japan suffered a major economic crisis resulting from the failure of stock brokerage firms and banks. The financial industry was rocked by scandals, leading to a number of prosecutions and, in early 1998, the resignation of the finance minister and the governor of the Bank of Japan, the nation's central bank. Although Prime Minister Hashimoto announced a program of tax cuts and spending to spur the economy, Japan slipped into its deepest recession since the end of World War II. The country's bad debt was estimated at near $1 trillion when Keizo Obuchi was elected head of the LDP and succeeded Hashimoto as prime minister in mid-1998. In Oct., 1998, the parliament approved legislation to allow the government to nationalize failing banks and to commit more than $500 billion to rescue the nation's banking system. By the time Japan's economy began to revive somewhat in 1999, the government had spent more than $1 trillion in a series of economic stimulus packages that included numerous public works projects.
In Jan., 1999, the LDP agreed to form a coalition government with the Liberal party, and the New Komeito party later joined the coalition. The Liberals withdrew from the government in Apr., 2000. Shortly afterward, Obuchi was incapacitated by a severe stroke and was replaced as prime minister by Yoshiro Mori, secretary-general of the LDP. lower-house elections the LDP-led coalition lost seats, but it retained control of the house and Mori remained prime minister. A series of political blunders undermined Mori, who was replaced by Junichiro Koizumi, an insurgent supported by the LDP rank and file, in Apr., 2001; the same month the New Conservative party joined the governing coalition. An LDP victory in upper-house elections in July, which the party had earlier been expected to lose, was regarded by Koizumi as a mandate for his government. Reform was resisted, however, by entrenched government bureaucrats as well as by LDP factions that would be affected by it, and Koizumi's government has tended to avoid difficult choices and largely has continued the status quo.
Despite that mandate and his initial popularity, Koizumi had difficulty passing more than superficial economic reforms, as powerful and entrenched bureaucratic and LDP interests resisted change. The stagnant economy, hindered by a domestic deflationary spiral that began in the early 1990s and by contraction overseas, experienced its fourth recession in 10 years in 2001. In November unemployment reached 5.5%, a postwar high. In part because of already high levels of government debt, Koizumi's government adopted a 2002 budget that reduced expenditures, instead of increasing spending to stimulate the economy. The economy improved during 2002 and 2003, but the government continued to fail to make any significant economic reforms. Also in 2002, Koizumi made a landmark visit to North Korea, which led to an agreement to establish diplomatic relations between Japan and North Korea.
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