The Koizumi Seima Co. Ltd. was founded in 1889. It had its main factory in Kobe and manufactured gunny bags from jute fiber imported from East Bengal. In 1930's the Company ranked first in its production of gunny bags in Japaan. Due to the increase of military demand during the Sino-Japnese War, the Company was placed under the special controls of the Army and the Navy. After the outbreak of the Pacific War, it was authorized in August 1942 to expand its activities into Southeast Asia, first in Burma, then in Java.
a) In Burma, the Company was nominated as the agent for growing jute fibers. Owing to the lack of experience in the jute growing business, the Company employed two technicians to meet the demand. Upon their arrival at Rangoon, they were assigned to undertake the work of jute growing in the lower Irrawady delta as allocated by the Hesdquarters of the Military Administration. They distributed to the peasants the seeds which they brought from Japan. In 1944, the jute was harvested. It was spun and woven by peasants using primitive tools which they designed. The finished gunny bags were delivered to the Army suply base. From the latter half of that year, owing to the counter-attack of the Allied Forces they were forced to halt their business and to retire to Rangoon. In May 1945 they retreated to the border of Thailand where they heared of the Japanese surrender. Of eight members of the Company's team, two were lost in the course of retreat.
b) In Java, the Company was commissioned in July 1943 by the Headquarters of the Military Administration to run a jute mill and eight neighbouring jute estates which were located at Delanggu in Surakarta and had been run by a Dutch Company. The Company was under the supervision of the Sugar Industry Public Corporation since the produced gunny sacks were exclusively delivered to the Corporation for packing of sugar. The Coporation controlled the business of the Company and supplied the funds. In the meantime, the Company was, in addition, ordered to take care of two nearby tobacco estates From early 1944 the Company ran the business free from the control of the Sugar Industry Corporation. In the latter half of that year the Company was commissioned to produce cloth from jute fiber as a result of the acute shortage of cotton cloth. They managed to produce such cloth and fabricate men's short trousers using captured sewing machines which were in the hands of Military supply office and leased temporarly to the Company. These trouseres were delivered to the Substantial Material Supply Corporation.
After the Japanese surrender, they closed the offices and the mill. The Japanese employees went to the Japanese detainee's camp. However, in October 1945 a group of Indonesians headed by Soemarsono former clerk of the Company, appeared at the Jakarta Office and summoned the Company's representaive. Posing as representatives of the Ministy for Economic Development they demanded the surrender of all assets and properties of the Company to the newly born Republic of Indonesia. They also asked the representative of the Company to sign a paper prepared to that effect.
The members of the Company in Java, thirteen in all, returned to Japan early in the following year.
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