What Happened Immediately After Japan Surrendered

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[Music] The defeated nation comes face to face with their conquerors on the USS Missouri at the surrender ceremony on September 2, 1945. The signing of the surrender signals the official end to a devastating conflict. On August 15, 1945, the Japanese people heard the voice of their Emperor for the first time, but Emperor Hirohito wasn’t delivering good news; he was announcing Japan’s surrender to the Allied Powers, an announcement that officially ended World War II.

[Music] After the war, Japan was a nation in ruins, its cities devastated by bombing and nuclear attacks. We’ve all seen these images—complete destruction. But then came an unprecedented transformation under the watchful eyes of an occupying force, the very same force responsible for this devastation. So let’s unpack how Japan rose from the ashes. It’s a fascinating story with everything from censorship and organized crime to secret intelligence operations.

In August of 1945, Japan faced a reality it had never expected: surrender. The Japanese government sent a message in response to one forwarded by the Secretary of State on August 11. This reply was deemed a full acceptance of the Potsdam Declaration, which specified the unconditional surrender of Japan. The island nation was now under the control of the Allied powers, led by the U.S. and General Douglas MacArthur. MacArthur had essentially become the de facto ruler of Japan, with a mission to demilitarize and democratize the country he had helped destroy.

MacArthur had almost absolute authority over Japan’s administrative decisions during the occupation. His office controlled all aspects of Japanese political, economic, and social life. He had the power to approve or disapprove laws, controlled the media, and directed Japan’s economic policies. His decisions were final and could ensure directives that had the force of law without needing approval from any other authority.

MacArthur’s title in Japan was the Supreme Commander for the Allied Powers (SCAP). He issued what were called SCAP directives, aimed at suppressing militaristic nationalism within Japan—the kind of nationalism that had led Japan into its imperialistic frenzy. This suppression meant controlling the media; SCAP censored all forms of media to extinguish any sparks of pre-war ultranationalist sentiments. This was about more than just controlling the narrative; it was about fundamentally changing Japanese culture and political thought.

Censorship was intense and all-encompassing, impacting everything from newspapers to movies to radio broadcasts, all to ensure Japan could rebuild itself in America’s image. Newspapers were under strict surveillance, and the Press Code of 1946 prohibited the publication of any material deemed detrimental to the occupation’s goals. This included criticism of the occupation itself, any form of militaristic or ultranationalistic sentiment, and the glorification of pre-war Japanese conquests or leaders.

Newspapers were not allowed to publish articles that openly criticized SCAP or portrayed the Emperor in a divine light. Before the war, the Emperor was considered a divine figure, but after the war, this perception changed. The Emperor’s New Year’s address in 1946, where he renounced his divine status, was heavily influenced by SCAP to ensure it aligned with their goals of democratizing the nation.

One of the most controversial impacts of SCAP’s directives was the addition of Article 9 to the Japanese Constitution, which renounced war as a sovereign right of the nation and prohibited the threat or use of force as a means of settling international disputes. This law is still in effect today. Think about it: when have you seen Japan in the news for starting a war or joining a war effort? You haven’t. Japan is constitutionally barred from participating in wars.

SCAP also dissolved Japan’s zaibatsu system. The zaibatsu were powerful conglomerates that controlled large portions of the Japanese economy through family-owned holding companies. These conglomerates emerged during Japan’s Meiji Restoration in the late 19th century as the country industrialized. Key families like Mitsui, Mitsubishi, Sumitomo, and Yasuda were major zaibatsu and played significant roles in Japan’s economic development leading up to World War II. They influenced everything from banking to manufacturing to shipping and were closely tied to Japan’s Imperial government.

Dissolving the zaibatsu led to economic instability and unemployment in the short term, creating an environment ripe for organized crime. The Yakuza, already embedded in Japanese society, took advantage of the chaos and expanded their operations. They controlled the black markets that emerged in the aftermath of the war. Japan’s industrial manufacturing centers had been obliterated, and with the economy in shambles, the Japanese people had to get creative.

Yamiichi, which translates to “dark markets,” sprang up all over the country. Allied Army surpluses and stolen goods were bought and sold. Items like Jeep tires and aircraft parts were repurposed for civilian use. Sugar was scarce, so the artificial sweetener saccharine became a hot commodity that was smuggled and sold at high prices. Even radio soap operas found their way into the black market as people sought an escape from the censorship.

Behind all this illegal trade was the Yakuza, providing muscle, running illegal vending stalls, and dealing with anyone who didn’t comply. In a way, the Yakuza became a sort of Robin Hood, maintaining order and keeping the shelves stocked, albeit on the down low.

One notable figure during this time was Yoshio Koda, a right-wing hustler who had been amassing wealth through various means, including squeezing resources out of China. He was imprisoned by the Allies after the war but was released in 1948 due to his anti-communist stance, which made him an ally in the eyes of the U.S. as the Cold War intensified. Whispers in the back alleys suggested that Koda began collaborating with the CIA.

Documents indicate that the CIA was interested in Koda, describing him as a living legend of ultranationalism and a backstage politician involved in smuggling and paramilitary operations. Koda was just one piece of a larger operation. In the years immediately following Japan’s surrender, an agency called G2 handled reconnaissance in Japan. The CIA, established in 1947, didn’t become involved until 1950. G2 began partnering with Japanese war criminals who were seen as useful assets, similar to what was done in Germany with Operation Paperclip.

Douglas MacArthur’s intelligence chief, Charles Willoughby, was tasked with setting up shadowy Japanese intelligence groups called Keyon. Many of these groups were filled with individuals labeled as war criminals, some of whom had participated in horrific war crimes. The U.S. played an active role in covering this up in the name of fighting communism.

When the CIA began operating in Japan after 1950, they initiated Operation Takamasu, using these Keyon to monitor North Korea and other regions. One group, the Hattori group, was involved in plotting coups and even attempted a hit against Prime Minister Shigeru Yoshida in 1952 for not being nationalistic enough. Willoughby had a massive network of spies, with over 2,500 operatives. One outfit, called the Canon organization, was reportedly involved in abducting leftists off the streets.

During this time, the CIA wasn’t just gathering intelligence; they were also influencing the political arena, funneling money into the creation of Japan’s Liberal Party, which eventually became the Liberal Democratic Party (LDP) after a merger facilitated by U.S. intelligence in 1955. The LDP has been in power almost continuously since then, forming what some call an “iron triangle” of power, money, and politics.

Before Japan and the U.S. signed a peace treaty in 1952, officially ending the occupation, CIA agents were already involved in Project Bluebird, conducting questionable mind games on suspected double agents. There was also the infamous M Fund, a massive slush fund allegedly used to finance everything from political campaigns to Yakuza operations for Western VIPs visiting Japan.

Additionally, the Red Purge began in 1949, targeting suspected communists across Japan. Thousands of academics lost their positions at universities, and many government employees were blacklisted. Any hint of left-wing sentiment was completely suppressed. That same year, Joseph Dodge arrived in Japan and implemented austerity policies that shifted Japan toward a more export-driven economy, linking big business owners with the conservative party, which was funded by the CIA.

The Dodge Line cut government spending and led to significant job losses, causing unrest among labor unions. When Prime Minister Yoshida planned to cut over 100,000 railway jobs, the chairman of Japanese National Railways, Sanori Shimoyama, received death threats and was later found dead on the tracks. Rumors circulated that it was a CIA or Soviet hit, but the case was never solved. Two other suspicious derailments followed, resulting in numerous casualties, and those cases also remained unsolved.

In 1950, the Korean War began, and General MacArthur instructed Prime Minister Yoshida to shut down newspapers to prevent the spread of communist media. Some of Japan’s most prominent newspapers were shut down indefinitely, and the purge extended to Japan’s National Broadcasting Corporation (NHK). However, by 1951, MacArthur had stepped down, and his successor, General Matthew Ridgeway, eased the purge after the Japanese Ministry of Labor revolted against continued American interference.

The Treaty of San Francisco was signed the following year, officially ending the American occupation of Japan. Amidst this political and economic overhaul, Japan’s education system underwent major reforms aimed at instilling democratic values and reducing militaristic indoctrination. Japan transitioned from a nation of rapid imperialists to one focused on rebuilding itself.

The irony is that this shift was facilitated by a nation—the United States—that had its own imperialistic tendencies, albeit cloaked in democratic ideals. At what point does intervening in other countries under the guise of democracy become undemocratic? It’s a question worth considering, though it may never be fully answered. Did Japan reevaluate its national identity, or was it compelled to change by a country that felt remorse for dropping two atomic bombs? Or did the U.S. simply see an opportunity to advance its own interests?

These questions are complex, and the reality is likely a combination of all the above. However, significant advancements were made in women’s rights, with women gaining the right to vote and new laws promoting gender equality. The educational system was overhauled and liberalized, and the economy eventually recovered, becoming one of the strongest in the world.

These changes were revolutionary, setting the stage for a more inclusive and equitable society. Today, Japan is ranked as one of the freest nations in the world. From the ashes of war, Japan was reborn—a story of resilience, bending but not breaking under the immense pressures of occupation and transformation. The Japan we see today is innovative, peaceful, and influential, shaped by these pivotal post-war years and the influence of intelligence agencies.

The occupation left a lasting mark on Japan, influencing not just its political landscape but also its cultural identity, for better or worse. What do you think about Japan’s transformation? Could such profound change have been achieved in any other way? Let us know in the comments below, and don’t forget to like, subscribe, and hit that notification bell for more insightful videos like this one.

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This version maintains the essence of the original content while ensuring it is appropriate and clear.