Category Archives: U.S.

A Japan-trained Dutch Banker’s Impressions of Chicago, 1968

From The Magatama Doodle: One Man’s Affair with Japan, 1950–2004, by Hans Brinckmann (Global Oriental, 2005), pp. 184-185:

Seven years earlier, our first US visit was no confrontation. We were wide-eyed tourists then, basking in America’s sun and easy smiles without care or consequence. Even our brief stay in Illinois in 1965, a year after my bank’s takeover by the Chicago bank, was little more than a courtesy call made out of our safe and trusted Japanese home base.

But this time it was different. This protracted stay was intended to be confrontational. There were wise men in the head office suspecting their ‘man in Tokyo’ of alien sympathies. They were right, twice over.

First, there was my typical European prejudice against the might and swagger of America, its superficial, money-based way of life, its waste and hyperbole, even that questionable concept – the ‘pursuit of happiness’. This spoon-fed mindset was overlain by a less expressible, more internalized reserve about the United States, Japan-grown and stubborn. It was directed at the American mentality, the casual arrogance that is the birthright of the strong. It was a silent protest against the overweening, patronizing manners of so many Americans towards anyone and anything foreign, and especially Asian. Above all, it was a deep-seated resistance against the immodest American approach to life itself, its aggressive ‘conflict model’, its blatant emotionalism and lack of restraint, its materialism and physicality and holier-than-thou Christian orthodoxy.

Thus I arrived in Chicago heavily burdened with opinion but also willing to change my views ‘in the light of new experience’. Well, experience is what we got. From the first day I had to place my mental constructs on the back-burner. Actual, visceral life, took precedence. The accommodation the bank had arranged for us, a small, furnished apartment in Old Town, turned out to be an address of ill repute, teeming with prostitutes. Within our stingy rent allowance we found a better place, near the Ambassador East Hotel, with mostly decent tenants. But we had to decide how to deal with the neighbours across the hall, a friendly well-groomed woman with an attractive grown-up daughter for whom – Toyoko had to conclude to her astonishment – she was acting as a ‘discreet’ pimp.

The confrontation with American reality brought home to me the vast cultural gap that separated that society from the Japanese – and the Dutch. But the comparison was not necessarily negative. The office, for instance, far from being a nasty environment steeped in power-crazy adrenaline, was more like a large living-room filled with people exchanging easy banter while glancing at a document or two, or discussing golf scores with a customer on the phone. The informality was deceptive. While telling jokes or kidding around these well-educated bankers kept a beady eye on the boss’s door, to see who would go in next or to wait for an opportunity to slip in with a ‘hot deal’. I was amazed to see that in spite of their relaxed style of communication they did get their job done.

The looser structure was an immense relief from the tensions and social rules of Japan. What is more I soon discovered that the much-maligned ‘shallowness’ of American social relations was actually more like an open, unprejudiced kind of hospitality which we tight-arsed Europeans and fastidious Japanese would do well to try and emulate, to our benefit. Americans, I found, opened their doors first and then sorted out what they had let in. Europeans and Japanese, distrusting spontaneity, were forever trying to determine the suitability of others before deciding whether they wanted to get acquainted.

My lifelong latent resistance against America’s ways had collapsed inside a week. Not on fundamentals, but – let us say – on the attractions of their lifestyle. These Americans lived their lives instead of fretting about them. They had no time for wrenching soul searching or weighing up the relative merits of their civilization. They were victors, and victors are free of doubt.

Vietnam was supposed to have changed all this. But not here, not yet, in this heartland of assured capitalism, where seating a single black graduate from Northwestern University on my bank’s carpeted ‘platform’ for all to see, was deemed to constitute an adequate gesture to the irksome demands of the Civil Rights movement. The headlines of the Chicago Tribune copies scattered about the desks might be screaming indignantly about the seizure of the US Navy ship Pueblo by the North Koreans or about the Communist Tet offensive just launched by the Viet Cong, but loan requests had to be processed and the 17.37 back home to the comforts of Winnetka had to be caught.

The self-assuredness was astounding. Laced as it was with magnanimity and the decency of family concerns it was a far cry from the imperial hauteur of the British and French or the self-conscious pride of the Japanese. But it was daunting nonetheless. Paraded around Chicago as ‘our man in Japan’ I had to make frequent appearances at meetings, both inside the bank and on calls to important corporate customers, to shed light on the mystery that was Japan. I was expected to explain the peculiarities of the market and dispense hot tips on how to breach its protectionist shell.

My audience was eloquent, courteous and sceptical.

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Filed under economics, industry, Japan, Netherlands, U.S.

Wordcatcher Tales: Yakinokori-zei, Yoyū-jūtaku-zei

From The Magatama Doodle: One Man’s Affair with Japan, 1950–2004, by Hans Brinckmann (Global Oriental, 2005), pp. 99-100:

She had contracted tuberculosis towards the end of the war, and had spent her teenage years in hospital and at home to fight the disease and recuperate. American-made streptomycin, not available in Japan at the time, saved her. Bought at great expense on the black-market, it consumed a good part of what remained of the family’s fortune after MacArthur’s confiscatory property taxes, including the infamous yakinokori-zei, ‘having-survived-the-bombings tax’ [焼き残り税 ‘burn-remainder tax’], levied on houses that were left standing, followed by the yoyū-jūtaku-zei, the ‘excess living space tax’ [余裕住宅税 ‘surplus residence tax’]. As she had been unfit to attend class, she had been tutored at home to prepare her for higher education.

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Trading Thai Ganja for U.S. Guns in Vietnam

From In Buddha’s Company: Thai Soldiers in the Vietnam War, by Richard A. Ruth (U. Hawaii Press, 2011), pp. 123-126:

This exchange of drugs for luxury goods brought together the Thais and the Americans to a degree greater than any official duty ever did. When asked to recall their interactions with Americans and other farang in Bearcat Camp, the Thai veterans brought up their meetings with drug-prowling GIs more often than they did any other circumstance. Even those Thai soldiers who said they did not participate in these illicit exchanges often cited conversations with drug-using farang as the only time they had a lengthy conversation with a foreign soldier in South Vietnam.

A drug user’s urge for a score was a powerful motivating factor for overcoming the reticence generated by cultural boundaries and difficulties in communicating. And the happy garrulousness that emerged in the aftermath of a successful buy turned some normally taciturn GIs into ad hoc cultural ambassadors. The relaxing effects of the marijuana on the Americans, when combined with the Thai soldiers’ self-described propensity for friendliness and tolerance, created the circumstances and environment in which the two groups could meet and learn about each other. “The ones who talked to us were the ones who [used] intoxicants, such as marijuana,” Sergeant Wad Kaeokalong remembered. “They used to come around looking for the Thai soldiers every day.”…

The drugs seemed to provide the impetus for farang soldiers to learn Southeast Asian languages. Some Thai volunteers later remembered the drug-using Americans as possessing superior language skills….

In addition to … items … available from the PX or the quartermaster’s store, there were other items more difficult to obtain that the Thais eagerly sought from the Americans. Namely, they wanted guns. It was common for Thai soldiers to bargain for a sidearm like those carried by American helicopter pilots. Possession of one of these high-powered pistols, which were not included in the arsenal issued to the Thai units, brought honor to its owner. More importantly, these unofficial weapons would not be taken from the Thai volunteers when they returned to Thailand. They could be hidden in their duffel bags and smuggled past the military police and customs officials who haphazardly searched the returning soldiers.

The most prized of these pistols was an American officer’s .45-caliber Colt automatic, what the Thais called the “US Army brand,” the “11” (for “11 millimeter,” the size of its round, or “M1911,” the US Army’s designation for the pistol). They did not come cheap, though. To obtain a weapon like that, the Thai volunteers had to trade a minimum of three kilograms of marijuana. “They brought [the pistol] back to Thailand to show it off,” Wad Kaeokalong explained. “Thai soldiers like guns.” For an American intent on scoring some marijuana from a gun-loving Thai, it was only a matter of reporting that his sidearm had been accidentally lost in flight.

The consequences of this drugs-for-guns trade affected crime patterns in Thailand. Thai authorities were alarmed by the number of personal weapons being smuggled into their country during this phase of the war. Some of the “top-grade” weapons acquired by the Thai volunteer forces began appearing in Thailand’s arms black market. Criminal investigators discovered a dramatic increase in the number of hand grenades, automatic pistols, assault rifles, and high-caliber ammunition turning up in the possession of private citizens, and in May 1970, Thai police officials gave orders for a crackdown on soldiers smuggling weapons from Vietnam and Laos….

This Thai desire for American arms had its origins in earlier episodes of modern Thai history. In bringing these weapons home, either for sale or personal use, the Thai volunteers were participating in a historical trend involving the dramatic proliferation of small arms throughout rural Thailand in the late twentieth century. This quiet arms race, a process that Thai historian Chalong Soontravanich has called the “democratization” of small arms, began during World War II, when most of the Thai volunteers interviewed for this project were young children. The influx increased during their adolescence Great quantities of lethal weaponry, including automatic pistols, hand grenades, and high explosives, flowed back and forth across the Mekong River when war between the French colonial forces and the Viet Minh flared in the late 1940s. Other wars of liberation throughout Southeast Asia fed more weaponry into these arms-trading networks throughout the 1950s and 1960s. These modern weapons, according to Chalong, became part of rural people’s “daily tools” and were used primarily for protection. The Thai government’s statements and warnings about the dangers posed by indigenous and foreign communists, subversive Vietnamese refugees, and militant Muslim separatists all helped generate a social atmosphere of imminent danger throughout rural Thailand. The acquisition of personal protection not only continued in this period but appears to have intensified with the availability of American weapons in the region. The Thai troops who acquired handguns and other weapons had a ready market at home. There was no indication of a glut in this market. As long as there were Americans around who wanted drugs, the Thais had the means to facilitate a trade….

Of all the stories about Thais who smuggled US Army weapons back to Thailand, one in particular gained legendary status among members of the Royal Thai Army for its audacity and high profile. Lieutenant General Chalad Hiranyasiri, the Thai commander entrusted by MACV to crack down on the Thai malfeasance in 1969, “embezzled” (om) a US Army helicopter as a “souvenir” of his time in South Vietnam. He kept it on the grounds of the Royal Thai Army’s First Infantry Regiment. Chalad, who was described by one Thai military writer as “bighearted,” used the helicopter to give rides to children each year on Children’s Day. Nearly three decades after Chalad was executed for his coup attempt, the helicopter was still in use.

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Wordcatcher Tales: Kohada-zushi, Konosirus punctatus

From Edo Culture: Daily Life and Diversions in Urban Japan, 1600–1868, by Nishiyama Matsunosuke, trans. and ed. by Gerald Groemer (U. Hawai‘i Press, 1997), pp. 170-171:

At the end of the Edo period the charming sight of sushi vendors selling kohada-zushi (sushi topped with a small gizzard shad) could be seen in the streets of Edo. Nigiri-zushi—bite-sized sushi made by squeezing a small amount of rice in the hand—was an Edo specialty that appeared during the Bunsei Period (1818–1830). This sushi soon became all the rage. The most conspicuous nigiri-zushi vendors sold kohada-zushi. These hawkers covered their heads with a hand towel in Yoshiwara fashion; they wore narrow-striped kimono tucked up behind, short coats with broad stripes and black silk collars, sashes known as Hakata obi, cotton leggings with white socks, and sandals made of straw and linen. Such a unique outfit made kohada-zushi vendors quite striking in appearance. From the start of spring until early summer sushi peddlers sauntered through the streets and called out in a mellifluous voice, “Sushi! Hey! Kohada-zushi!” …

Nigiri-zushi was also sold by “Atakematsu” of Atakegura in Honjo; eventually this sushi came to be known simply as “Matsu’s sushi.” … Most were mere street stalls, but true restaurants existed as well. At any rate, sushi was highly popular. From Edo the sushi fashion spread to the Kamigata area. In the late 1820s a restaurant called “Matsu no sushi” appeared south of Ebisubashi in Osaka. This was the first Osaka outlet of Edo sushi: but before long this specialty was sold at shops throughout Osaka.

Kohada (小鰭) and shinko (新子) are young and younger stages of konoshiro ‘dotted gizzard shad’, Konosirus punctatus (Temminck & Schlegel, 1846), according to Japanese Wikipedia, but a species utterly missing from English Wikipedia, where gizzard shad is summarily redirected to American gizzard shad (Dorosoma cepedianum), in a genus limited to eastern North America. The other five genera of the subfamily Dorosomatinae (gizzard shads) are not covered at all. The systematics of shads appear to be extremely complex.

I first heard of shad from my youngest uncle, who had a cabin down by the James River near the site of Virginia’s peculiar political gathering, the Shad Planking.

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What the River Kwai Meant to Thais

From In Buddha’s Company: Thai Soldiers in the Vietnam War, by Richard A. Ruth (U. Hawaii Press, 2011), pp. 42-44:

Behind the confident statements issued by Thai and US leaders throughout the first half of 1967, the battle readiness of the regiment was uncertain. American military personnel who had come to train the Thai [Queen’s Cobra] regiment were unimpressed by the volunteers’ level of preparedness. From early June, in the ten weeks that remained before embarkation, the American advisers guided the Thai unit through field exercises and training missions in Lopburi, Chonburi, and Kanchanaburi. The Americans had designed “an intense training” program that “drilled the Thai [troops] in the exact tactics and methods of operation employed by the Viet Cong.” They hoped that this crash course would help the Thais counter the guerrilla warfare methods being used by the Vietnamese guerrillas. All of the American instructors came from experienced combat units in South Vietnam and were eager to impart the lessons they had acquired. They attempted to simulate the conditions that the Thais would face in South Vietnam, but despite the physical similarities between Thailand’s and South Vietnam’s landscapes, the Americans found it difficult to impose a sense of urgency or even realism on the regiment that had hitherto been regarded as a domestic symbol. In Kanchanaburi the Americans led the Thai troops in field training exercises that crisscrossed the jungles along the Khwae (or Kwai) River, not far from the site of the bridge built by forced labor for the Japanese Imperial Army’s “Death Railway” during World War II. The fictionalized retelling of the bridge’s construction, as presented in Pierre Boulle’s 1954 novel and its 1957 film adaptation, was on the minds of the Americans as they trained the Thai troops. The hint of cinematic make-believe suggested by the Khwae River location may have contributed to the growing unease among the American instructors. It was as if their appreciation of the book and film undermined their own attempts at simulating realism in the jungles there. The Americans’ effort to impose realistic conditions on the exercises were compromised by the feeling that they had been dropped into a movie set on which a familiar, unrealistic film had been made. While the Thai troops were certainly aware of the cinematic resonance that the Khwae River setting elicited, the region offered them another set of specifically Thai symbols born from a different semifictional source: Thailand’s nationalist history.

The area used in the training exercises was not far from several sites important to the historical imagination shared by most Thai soldiers in this era. Kanchanaburi’s location below the Three Pagoda Pass put it on a major route traditionally used by the Burmese and Siamese armies while invading and raiding each other’s kingdoms. In the nationalist version of Thailand’s history prevalent in 1967, a retelling of events that was particularly popular with members of the Thai military, the Burmese of old were always portrayed as the Thai people’s archenemy. The natural corridor created by the mountains to the west and the Chaophraya floodplain to the east was the site of several celebrated (and historically embellished) clashes between these occasionally bitter rival kingdoms.

The battle of Nong Sarai was certainly on the minds of the Thai volunteer soldiers as they trained for their South Vietnam mission. It had occurred during a phase of Ayutthaya‘s history when the kingdom’s Thai rulers were struggling to retain their sovereignty after several decades of Burmese military occupation. At this site in January 1593, King Naresuan the Great, the most revered figure in this nationalist history, won Siam’s greatest military victory. With his forces pressed to the breaking point, Naresuan was said to have called out the Burmese crown prince to challenge him to a duel on war elephants. After a few minutes of fierce combat, Naresuan got the better of his Burmese rival and killed him with a well-aimed slash of his sword. The Burmese forces panicked and fled south-southwest toward Burma. Naresuan’s army pursued them through Kanchanaburi, decimating their scattered lines.

The Thai soldiers preparing to fight in South Vietnam relished their proximity to the site of Naresuan’s victory. Joseph Callaway described his Thai trainees talking about a centuries-old victory over the Burmese “as though it took place only a few years before.” They cherished the historical memory of the warrior king and asked his spirit to bless their upcoming adventure. The men prayed in an ubosot (Buddhist ordination hall) said to have been visited by Naresuan while he was fighting in the area. Many recalled dreaming of Naresuan while training in Kanchanaburi and fighting in South Vietnam….

In the midst of this atmosphere of competing cultural and historical symbolism, the Thai troops added one realistic detail to their training procedure that may have trumped even the Americans’ passion for realism. The Thai troops carried live ammunition along with the simulated rounds used in their training because they felt they required protection against the dangerous forces that inhabited the Thailand-Burma frontier, everything from cobras and tigers to opium smugglers. Although the American trainers felt that the Thais did not fully comprehend the danger posed by the Viet Cong guerrillas, they were flabbergasted to discover how anxious this apparently sleepy western province made the volunteers.

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Goals of Thai Volunteer Soldiers in the Vietnam War

Normally, I try not to excerpt from books hot off the press unless they offer new historical perspectives on recent events. This ground-breaking book seems long, long overdue, and the rest of the chapter from which I’ve quoted is available online. It offers a useful corrective to those who view every regional conflict through the lens of their own far-removed national partisanship, those who see every wartime ally of a hegemonic power as a bought-and-paid-for puppet, or those who imagine that Buddhists cannot be just as warlike as members of any other religion.

From In Buddha’s Company: Thai Soldiers in the Vietnam War, by Richard A. Ruth (U. Hawaii Press, 2011), pp. 4-8:

The most important of the Thai national symbols constructed during the war was that of the volunteer soldier. He was an idealized man who was brave, devout, patriotic, and selfless. His image was the incarnation of modern Thainess in an age of anticommunist furor. For a while, he would be hailed—in Thailand at least—as what was intrinsically good about the Thai nation in the postcolonial age. He would restore honor to the Thai military in the wake of its ignoble adventures during World War II, and make the goals of the military appear consistent with those of the civilian population. In the years before 1973–1976, when this idealized soldier-citizen was put to sinister use by the Thai military and by the Thai paramilitary vigilante organizations that emerged from the military’s dark shadows, he was someone to be admired, envied, and supported.

As symbols, the Thai volunteer soldiers reflected the evolution of Thai society in several critical ways. They stood at the nexus of many of the important themes that defined Thailand’s history in the 1960s. In this way they can be read as the embodiment of the changes that affected the country after World War II. These trends are related principally to Thailand’s relationship with the United States. In the period now known as the American Era, these troops became Thailand’s official representatives in the biggest US-dominated event: the war against communism in South Vietnam. They were physical reminders of America’s close relationship with Thailand during the period of the conflict. They wore American uniforms, carried American weapons, and conducted military operations according to American training. They departed and returned to Thailand aboard American ships and planes. They lived in an American-built camp bearing an American name. They carried American currency with which they purchased items of American material culture. The stories they carried back were as much about things American as they were about the people and culture of South Vietnam. Their repatriated casualties received prominent American visitors—some of them international superstars—in Thai military hospitals. And some of their dead ended up buried in American soil to be mourned far from home by American strangers. In an age defined by an American idiom, they bore the marks of close contact with the Americans.

The troops were also a product of the other great theme of the day: development (kan-phatthana). The American-built roads that transformed rural Thailand’s physical landscape and social and economic systems in the 1950s and 1960s also transformed its people. The infrastructure constructed with American aid, machinery, and advice profoundly altered the relationship between the people of the countryside and those of the urban center. For the first time in Thailand’s history, the people and circumstances of the rural areas rivaled those of the capital in importance to the national state. The need for industrial labor, construction workers, and service employees brought waves of internal migrants from what had once been Siam’s hinterlands to live and work in Bangkok. The newcomers changed the face of Bangkok, a city whose dynamism had previously been understood to be almost the exclusive product of the Chinese immigrant and entrepreneurial energies. And in doing so they changed Bangkok’s self-image. These upcountry people redefined what it meant to be Thai. Their migration patterns from rural to urban were not one-way journeys. Their ties to their homes and the seasonal nature of the farms they left behind contributed to the exchange between two formerly antithetical geographic cultures. The newly mobile brought back the ambitions, ideas, and perspectives of the capital city. These men and women became a migratory population whose outlook was simultaneously rural and urban, traditional and modern, settled and restless.

The Thai volunteer soldiers were products of this age of rural transformation. Changes in national politics, economics, and education were influential agents in the formation of their outlook. Their individual stories describe the profound changes under way in areas where the people had only recently begun to see themselves as belonging to the center, as being truly Thai. This process of transformation coincided with some of the earliest academic studies of Thai regionalism. The experiences of the Thai volunteers complement such studies as Charles Keyes’ Isan: Regionalism in Northeastern Thailand. The stories of their youth and young adulthood, of their time before, during, and after their tours of duty in South Vietnam, are the stories of rural Thailand in this era. The rapid expansion of government public schools, and the emphasis on national loyalties over local loyalties, encouraged rural youths of this era to consider themselves subjects of the state to an unprecedented degree.

Although they were not the first generation to be educated in Thailand’s government schools, the volunteer soldiers were the first to have been schooled at a time when secondary education was a possibility for all children of the rural poor. The expansion of upcountry secondary schools and technical colleges provided some of these people with the educational infrastructure for more advanced degrees and also the broadened ambitions and expectations that come with higher learning. Similarly, the traditional intrusions of the state, obligations such as taxes and conscription, were less odious, if not less onerous, to a young population that saw its adult fate as entwined with that of the nation. As per the requirements of the Royal Thai Army’s guidelines for the recruitment of soldiers for South Vietnam, all of the volunteers had graduated from secondary school, a newly possible feat for the rural poor. Many of them had continued their education while serving as draftees in the army. The sheer number of volunteers who qualified for service in South Vietnam was a reflection of the rise in education levels throughout the country. As young adults, many of these men had wanted to elevate their social status but had failed so far. Most of them had missed out on the opportunities available to the expanding middle class located almost exclusively in Bangkok’s urban sphere. Unwilling to join the unskilled labor force in the capital, they pinned their hopes on gaining positions as civil servants—bureaucrats, policemen, and teachers—in the upcountry provinces of their births. Lacking the advanced education to become teachers and the connections needed to secure a spot in the provincial government, these young men became soldiers. Even this avenue was only a stopgap measure. Like the civil service, the Royal Thai Army lacked the capacity to absorb all of those who sought long-term careers. With the exception of the few who had made a career in the military, most soldiers served only two years as conscripts. The opportunity to reenlist with the Queen’s Cobra Regiment and the Black Panther Division represented an unexpected second chance at an army career.

The strong desire the volunteer soldiers expressed to visit foreign lands and learn about neighboring cultures reflected a correlated elevation in ambitions as well. The largely rural population of young who volunteered for service in South Vietnam had taken the government’s mantra of kan-phatthana and applied it to themselves. A tour of duty as a member of the celebrated volunteer corps confirmed their personal worth as well as their value to the state. Going to South Vietnam became a major goal in their personal program of change. To this day, many veterans cite their time in South Vietnam as the pinnacle moment in this process of transformation. Long after they returned home, and long after they had spent the monetary rewards they had acquired as compensation, the lingering aura of exceptionality garnered them a measure of distinction, of a special social status, in the societies that had produced them. Many got jobs that were better than they would have previously expected. And, a generation later, their children enjoyed even better lives, thanks to the continued financial, educational, and health benefits and expanded horizons that Vietnam service provided.

The Thai volunteers saw themselves as Buddhist warriors. Theravada Buddhism—especially the layman’s expression of Buddhist culture popular in Thailand in the 1960s—played a critical role in the lives of these soldiers and in the national adventure that sent them to South Vietnam. Thailand’s sangha (Buddhist ecclesiastical order), after some deliberation, sanctioned their military mission. The Supreme Patriarch and other prominent monks blessed the departing troops and the returning casualties in public ceremonies. The military units transported Buddha icons along with their weapons and support equipment. A crowded Buddhist altar dominated by a Sukhothai-style Buddha statue was set up in the Thai contingent’s field headquarters as the backdrop to all meetings with the Thais’ “Free World” allies. Some troops put Buddha images on their military vehicles. And the most emblematic symbol of the Thai fighting man was the string of Buddhist amulets that ringed his head and filled his pockets. Some soldiers brought as many as 100 tiny Buddha statuettes—enough to field a full combat company—for their protection. These iconic symbols would impress their American GI counterparts, facilitate their illicit trading schemes, and neutralize foreign magic in the spirit-rich forests of Bien Hoa.

I blogged earlier about South Korean attitudes toward the Vietnam War.

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Will Japan Surrender Its Economy This Time?

Japan surrendered 65 years ago today, after decades of initially triumphant and then draining military conflict marked by official denial of any possibility of losing militarily until the very day of surrender. A recent op-ed in the Christian Science Monitor by a financial investment researcher suggests Japan is going to lose its formerly triumphant economic “war” in the same way (with lessons for the U.S. and other debt-ridden economies).

Investors are understandably scared of the sovereign debt crisis unfolding in Europe, but they are ignoring a more definite and significantly larger sovereign debt catastrophe that is about to hit the world’s third-largest economy: Japan.

The prelude to Japan’s current crisis began in the early 1990s when its housing and stock market bubbles popped, leading to recession.

For the next 20 years, using flashy names like Fiscal Structural Reform Act, and Emergency Employment Measures, and Policy Measures of Economic Rebirth, the government cut taxes, increased spending, and borrowed money to finance itself. Once or twice the government found fiscal religion and raised taxes; however, the economy stuttered and taxes again were lowered and the stimulus story continued.

Today, 20 years into endless stimuli, the Japanese economy is beset by the same rot it was then, except that its debt has tripled – the ratio of debt to gross domestic product (GDP) stands at almost 200 percent, double those of the United States and Germany, and second only to Zimbabwe….

A country that has ballooning debt needs to have an expanding economy to help the country outgrow its debt burden. Economic growth is driven by two factors, productivity and population growth. Though the Japanese economy may continue to reap the benefits of productivity, population growth is not in the cards.

Japan has one of the oldest societies in the developed world; every fourth Japanese person is over 65 years of age, and the population is shrinking. Due to cultural mores, workers are largely compensated not on merit but on seniority. Thus, young adults marry later in life, and have kids later.

This helps explain why the Japanese birthrate is one of the lowest in the world, a meager 1.37 per woman, well below the 2.1 figure needed to sustain a population….

Though debt has tripled over the past two decades, government spending on interest payments has not changed; in fact it even declined a little in the mid-2000s. This happened because the government’s average interest rate paid on its debt declined from more than 6 percent in the 1990s to 1.4 percent in 2009.

This is about to change. Historically, more than 90 percent of Japanese government-issued debt was consumed internally by its citizens, directly or through its pension system. In the 1990s, the savings rate was very high, pushing the mid-teens, but as people get older, they retire and start drawing down their savings and pensions. Today, the Japanese savings rate is approaching zero, and will probably go negative in the not-so-distant future.

The Japanese economy operates on the (soon-to-be-proved-false) assumption that the government will always be able to borrow at low interest rates. As internal demand for debt evaporates – and it’s approaching this level already – the Japanese government will have to start hocking its debt outside Japan.

When it does, it will face a rude shock in the form of higher interest payments. Japanese 10-year Treasuries now yielding 1.0 percent will not stand a chance against US or German bonds of the same maturities that yield 2.89 percent and 2.59 percent, respectively….

Along with China, Japan is the one of the largest holders of US government debt, and its demand for our fine paper will decline. Most likely, Japan will start selling Treasuries. And to make things worse, Japan will start competing with the US, not just in cars and electronics, but for buyers of sovereign government debt. Japan will export inflation, inflation will rise globally, and so will interest rates.

Had I written a similar article five years ago, I would have been “wrong,” as today the Japanese economy is still ticking. Timing bubbles – and Japan is in the late stages of an enormous debt bubble – is very difficult, as bubbles tend to last longer than rational observers expect. But every year that the Japanese bubble doesn’t burst and debt swells, the eventual pop just grows more catastrophic.

Japan is past the point of no return; its fiscal and demographic problems were created over decades and will take decades to be resolved. In the meantime, its citizens will pay the painful price. Japan is proof that a country cannot borrow itself to prosperity.

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The Making of “Uncle Goat”

From: Comfort All Who Mourn: The Life Story of Herbert and Madeline Nicholson, by Herbert V. Nicholson and Margaret Wilke (Bookmates International, 1982), pp. 137-140:

We sailed for Japan on the Flying Scud with two hundred fifty goats. Dick Clark, an expert photographer, was on board with color movie film to record the trip. When it was over he edited some two thousand feet of film into “Ambaassadors of Peace,” the record of our trip with the emphasis on “baa.” Besides Dick and his camera there was Al Brower, a ventriloquist with his doll Bill, Les Yoder, a Mennonite young man who came along to help, and Ty Nagano, a Nisei.

We arrived in May, which happened to be kidding time. We started with two hundred fifty goats and landed with two hundred sixty five! Just before we reached Yokohama, I was called from bed in the middle of the night. There was trouble in the maternity ward. I found “Temperance,” given by the Women’s Christian Temperance Union, in agony. She was having a breech delivery. Everyone was standing around not knowing what to do, so I rolled up my sleeves to help. I managed to get hold of the kid’s legs and pulled while Temperance pushed, and out came a beautiful large doe. We named her Kiyoko, which means “pure.”

When we landed in Yokohama, there was a welcome meeting for us. On that occasion, I told the story of a young Nisei girl, Satomi Yasui, and her family in America who had raised four goats for our project. The Japanese Vice-Minister for Agriculture who was present at the meeting told me afterward that I should tell the story over the radio for the children’s hour. So I went to the NHK (Japanese Broadcasting Company) office in Tokyo, but I was told that getting clearance for me to speak on the air would take six months.

Instead, I told the story to a newsman, a reporter for the women’s hour, and to a young man for the children’s hour. The young man elaborated on my story in his talk over the air. Another man heard the program and wrote it down for a large children’s magazine, adding even more changes. Finally, with more additions, the story was put into a fifth grade reader, and I became known as “Uncle Goat.”

In the reader, the story was no longer about Satomi, but about a boy named Harry whose father had been killed in the war with Japan. It was a very touching story about the sympathetic love of a lad who sacrificed to send a goat to the children of the man who had killed his father. In later years the printing of that story in the reader opened the way for me to speak in many schools all over Japan where I might otherwise never have had the opportunity….

At Honolulu [on the way back home to the States] I was “bumped off” the flight for someone of higher priority. It was four days before I could get another flight, so I used the time to tell the people in Hawaii about the goat project. The Okinawans living in Hawaii sent me a total of $35,000 for goats as a result of that visit. With the money, Heifers for Relief was able to send over five thousand goats to both Japan and Okinawa. After four wonderful days I made it back to San Francisco just in time to help send off the next load of goats.

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The Heifer Project’s First Goats for Okinawa

From: Comfort All Who Mourn: The Life Story of Herbert and Madeline Nicholson, by Herbert V. Nicholson and Margaret Wilke (Bookmates International, 1982), pp. 127-129:

An organization called Heifers for Relief, sponsored by the Church of the Brethren, decided to accept my offer to raise money and take goats to war-torn Japan.

Milk was in desperately short supply overseas and the Japanese children were being severely affected by the shortage. Ordinarily the Heifer project sent only bred heifers to ravaged areas. In this case, goats answered the need more readily, so goats were sent for the first time in its history. Later they sent all sorts of farm animals to many countries and aided poor farmers in the United States as well.*

When I received approval of the goat project I went to work. I raised a good part of the money and bought most of the goats myself. Then I gathered a little group of men to accompany me on the first trip. Sim Togasaki, a Nisei from San Francisco, wanted to come because he needed to make contacts in Japan for his importing business. Although he knew nothing about goats, he was a hard worker and a great help because he spoke fluent Japanese. Ted Roberts, a dairyman who had always been interested in the Japanese, and Paul McCracken, a goat expert, also came with us. Paul was a Quaker, too, so I was glad to have him along. My son Samuel also came. He took color slides everywhere which later were a great help in raising money for more goats.

In October, 1947, we arrived in San Francisco ready to load up for a trip when we found, to our great disappointment, that the Army had decided to send us to Okinawa rather than Japan! The following load would be scheduled for Japan. That disappointment was to become God’s surprise for us. What lay ahead was a wonderful adventure.

The Army had built pens for our two hundred goats on the rear deck of the Simon Benson, a small liberty ship which was not in good shape. We had a rough trip across the Pacific and were very relieved when we reached Okinawa safely. Later we learned that on its next trip the ship had split open! It was easy to believe.

Our arrival in Okinawa was an unforgettable experience. The harbor at Naha was full of sunken ships. The city had been completely destroyed. We could only stare in shock and pity.

We received a warm welcome and were greeted by the governor and other dignitaries. It was a delight to discover that Mr. Shikiya, the governor, was a Christian. After the ceremonies, in which we presented a goat to the community, we milked the remainder of our goats and took the milk to an orphanage.

We discovered that we were to be housed at the Military Government Headquarters across the island from Naha. Our escort there was a former missionary to Japan, Everett Thompson, who was in charge of LARA (Licensed Agencies for Relief in Asia). The occupation forces did not want to work with a lot of separate relief organizations, so they formed this agency to coordinate all relief efforts. The Heifer project joined LARA, as did the Church World Service, the Friends’ Service Committee, and many others.

At the Military Government Headquarters we were taken to the officers’ quarters. What a surprise to discover that we goatherds were classed as colonels.

* Nicholson seems to have been unaware that the Heifer project had already been sending horses and chickens as well as cattle to war-torn Europe in 1946.

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McWhorter on McCrum’s “Globish” English

In The New Republic, John McWhorter reviews Robert McCrum’s bass ackwards book, Globish: How the English Language Became the World’s Language.

But the central problem is that McCrum’s sense that English is somehow uniquely “direct” and “universal” and therefore well-suited to bestride the world is false. In two ways.

First of all, to the extent that McCrum is taking this from English being light on conjugation suffixes (in the present, just little third-person singular -s) and not having gender (no el sombrero for hat but la luna for moon as in Spanish), you can’t claim that this makes it easier for a language to be universal without looking at the fate of other languages. Russian started as a homely, unwritten Slavic dialect, but is currently spoken by 280 million people, speaking a vast array of indigenous languages natively. Yet Russian is murderously complex – three genders, verbs of pitiless complexity, assorted sounds that are tough to produce, squishy word order, unpredictable accent on words, and on and on. (Of those who have reviewed the book in big venues, I am aware of only TNR’s own Isaac Chotiner as touching on a comparison like the Russian one in his New Yorker review.)

Russians, too, are given to chauvinistic claims about their “great and mighty Russian language,” in which case one could posit that the complexity of the language makes it “mighty” as well as maximally clear. This would make, in the end, about as much sense as claiming that English has gotten around because it’s relatively easy to learn. Both English and Russian have spread the way they have because they were the languages that happened to be spoken by powers that happened to acquire vast amounts of territory.

There is a discussion to be had as to why England (plus America) and Russia have had such lasting influence – but the reasons are about sociohistory and geography, not conjugation. We know this because if there were any meaningful linguistic argument, England and Russia would neatly cancel one another out. Arabs, too, might be perplexed to hear that a language has to be easy – “direct,” as McCrum often has it – to be a vehicle of empire. As anyone who has tried to master it will attest, Arabic is a tough one for foreigners. Yet the region is unrecorded that scoffed “We shall not use this Arabic tongue, as it be too difficult on the tongue to serve as a language of conquest!”

Then McCrum errs in a second way. He misses that to the extent that geopolitical dominance and linguistic structure can be correlated, it’s in that the dominance causes the grammatical simplification, not the other way around. This was even part of English’s history – when Scandinavian Vikings occupied England starting in the eighth century, they produced Old English in a stripped-down fashion just as many of us have produced French and Spanish in classrooms. There were so many of the Vikings that kids heard as much English of this kind as “real” Old English, and in a culture with little schooling or media, this “funny” English became the only English.

McCrum knows this – but misses that it upends his paradigm. The Vikings didn’t pick up English because it was enticingly “universal” – they made it easier by picking it up. To the extent that McCrum may suppose that it was this that kicked off English’s “accessible” phase, we return to Arabic and Russian – universal in their ways despite being un-Vikinged. Sanskrit, Cree, Tagalog and other complex languages also seem to have gotten around – the whole construct McCrum builds just doesn’t work.

Meanwhile, the world over, languages are on the easy side because they happen to have been imposed on a lot of adult foreigners. The lingua franca in Papua New Guinea, for example, is Indonesian, which delights the learner in having no gender, no conjugation, and no Chinese-type tones.

Unfortunately, McWhorter confuses Papua New Guinea, where Tok Pisin is the lingua franca, with West Papua (formerly West Irian), where Indonesian is the lingua franca. Otherwise, he’s right on target.

via Rainy Day

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