By Phillip Towle, Nobuko Margaret Kosuge
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Extra resources for Britain and Japan in the Twentieth Century: One Hundred Years of Trade and Prejudice
Many obstacles existed to Japan’s sustaining her remarkable progress of the war years, let alone using it as a platform for further development. Problems stemming from Japan’s position as a late industrializing economy were widely recognized in both Britain and Japan. 3 The chapter will start with a brief overview of the effect of the First World War on the functioning of the international economy, and the positions of Britain and Japan within it. Particular attention will be paid to the impact of wartime conditions on the Japanese economy, and the way in which they acted as a stimulus to longer term growth.
25 It was the efforts to achieve this goal that impelled both Edward VII, who after all was related to the Russian dynasty, and Lord Lansdowne to praise Cassel, Schiff and the others for their ‘admirable arrangement’. The first Russo–Japanese war loans were issued on 11 May 1904, one-half by Parr’s Bank, HSBC, and the Yokohama Specie Bank in London, and the other half by Kuhn, Loeb in New York. The Japanese government, desperately in need of money to meet wartime expenses, agreed to terms it would not have accepted three months earlier.
Practically all the existing mills are fitted with British machinery, and the workers are now so thoroughly accustomed to its use that although there has been a good deal of talk about introducing American machinery, it is unlikely that such a drastic step will be taken – at least in the near future. 25 The war itself therefore posed limits to import-substitution industrialization. But even allowing for Japan’s ability to supply, her 25 Janet Hunter manufacturers did not always provide exactly what the British or Empire purchaser wanted; in other words, the output failed to reach the required standards.