U.S. foreign assistance to Japan (MSA) and the Japanese aircraft industry after the Korean War (1950〜53)

Abstract

The purpose of this article is to examine the relations between the Mutual Security Act (MSA) assistance to Japan and the revival of the Japanese aircraft industry. Japan received various forms of assistance from the U.S. and other countries or organizations after World War II. The MSA is noteworthy for establishing a link between Japanese rearmament and the U.S. agricultural disposal program. Section 550, which required MSA aid recipients to take U.S. agricultural surpluses, was added to the MSA in 1953. As a result, Japan was required to sell surplus U.S. agricultural products on the domestic market and use the proceeds to finance its defense industry. The funds were mainly invested in equipment and technology for the aircraft industry. This type of aid was called 'defense support' economic assistance, being a form of assistance to countries that had military agreements with the U.S. but were unable to meet their military obligations. Since funds were created by selling U.S. agricultural surpluses in Japan, the MSA was beneficial to both U.S. agricultural exports and to the Japanese aircraft industry.