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forced early retirement. Sahashi has often denounced it as irrational, even though he was a past master at manipulating it. By the 1970's both the bureaucrats and the public were showing signs of irritation with the system. In 1974 an official rocked MITI by refusing to resign after he had been tapped and told it was time to go. Hayashi Shintaro *, spring class of 1947 and a Ph.D. in economics, had been chief of the Industrial Location and Environmental Protection Bureau for less than a year when he was asked to resign. Even though he had excellent job offers from private industry, he refused them on the grounds that his current work was important and that it was poor administration to change officials before they could even begin to be effective in their posts. Hayashi was liked in the ministry; he had become famous for developing the postwar Japanese sewing machine industry into a thriving export business, and he had served for several years in the JETRO office in West Germany, where he had studiedas MITI habitually puts it'how American capital overran the Western European economy.'
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His refusal to resign won praise from some younger MITI officials and from the press. Nonetheless, he was reassigned to the Secretariat with no work to do and took a cut in pay. Shortly thereafter he resigned and became vice-president of Jasco Corporation, a big chain of retail stores in the Osaka and Nagoya regions.
In contrast to the views of Sahashi and Hayashi, Ojimi* Yoshihisa, a vice-minister, defends the system. He argues that strict rules of seniority and early retirement make Japan's top bureaucrats more youthful and energetic than those of other countries, and that because of their vigor they can generate more good new ideas. At the same time, the system of senior-junior (sempai-kohai*) relations, which extends beyond the period of bureaucratic service, ensures that their actions are watched by men with great experience.
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It should be added that an additional result of the system of early retirement and subsequent reemployment in big business or politics is another link between a ministry and its main clients. The practice of bureaucratic descent from heaven thus generates one more kind of factional tie among the central groups of Japanese societyfactions based on financial considerations (zaibatsu, in the nonspecific sense of the term).
As we have already seen, state bureaucrats in Japan retire early from government service and then obtain new employment in big business, public corporations, or politics. This practice is obviously open to abuse, and many Japanese commentators have charged that it has been abused. MITI reporters, for example, argue that a wise bureaucrat will use his years as a section chief to generate new ideas and put pressure on the business community to adopt them, but that as a
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bureau chief he should become submissive toward the ministry's clients with a view to enhancing his own amakudari.
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Misono* Hitoshi asserts that the combination of early retirement and inadequate pensions has made government service ''only an apprenticeship for favorable employment after retirement.'
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And Takeuchi Naokazu, a disgruntled former Ministry of Agriculture bureaucrat who quit and became active in the consumer movement, charges that the Budget Bureau of the Ministry of Finance has been known to increase the budget shares of ministries that were willing to find positions for retiring finance officers in the public corporations those ministries control, or among their clients.
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Actual corruption among higher officials in Japan has occurred but is uncommon. In general, the Japanese public places greater trust in the honesty of state officials than in the honesty of politicans or business leaders. Such petty corruption as does occurgifts from businessmen, golf club fees, dinner parties, junketsis more common among noncareer officials than among the higher bureaucrats, and was more common in the period of shortages in the 1950's than in later years.
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When such incidents do involve higher officials, the press and public are quick to condemn them. For example, charges of the misuse of public funds in several public corporations and efforts to apprehend the guilty were national causes celebres during 1979 and 1980.
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And the press and opposition parties are very watchful. The
, for example, reports that 'toward the end of November of 1973, Nozue Chimpei, a member of the House of Councillors, conducted a unique study. He and his staff examined the trash cans at the construction and transport ministries to study how conservation policies were being carried out. After seven days of investigation, they found that the trash cans at the two ministries were filled with empty bottles of Johnny Walker and other expensive foreign liquor, and empty gift boxes bearing the names of senders.'
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The serious issue in Japan is not the occasional abuse of office by a higher official but a pattern of cooperation between the government and big business that may have unintended consequences. Throughout its modern history Japan has experienced a series of major governmental corruption scandals, the most famous of which are the Siemens case of 1914, the Yawata state steel works case of 1918, the Teijin case of 1934, the Showa* Denko* case of 1948, the shipbuilding bribery case of 1954, the Tanaka 'money politics' case of 1974, and the Lockheed case of 1976. These are only the most sensational; numerous others have occurred, and four resulted in the fall of governments.
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Less flagrant but possibly more important have been incidents of
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seeming wholesale payoffs by the government to business interests with preferential access or advance knowledge: the 'dollar-buying scandal' of 1931, the payments to munitions companies immediately following the defeat in 1945, and the Bank of Japan's dollar-buying policies at the time of the August 1971 'Nixon shock' (in the face of certain knowledge that the yen would be revalued). On August 27, 1971, alone the government paid out some $1.2 billionsix times the amount involved in 1931to purchase dollars that had already been devalued on the rest of the world's foreign exchange markets. Total Bank of Japan dollar purchases in 1971 came close to $6 billion at ?360 = $1 instead of ?308 = $1; this represented a gift to
