Briefcase Brigades

Two decades ago, the Japanese marched out to impose with guns their "Greater East Asian Co-Prosperity Sphere" on the helpless nations of Southeast Asia. Last week, while most of the world's eyes were trained on Europe's faltering Common Market, the Japanese were again swarming over Asia, and in Tokyo Foreign Minister Masayoshi Ohira was again talking of co-prosperity. Today's invaders are briefcase brigades of Japanese businessmen with funds to invest in local industries and squads of technicians offering help for every venture from building dams to making watches. In 1963 the Japanese really mean--and badly need--genuine co-prosperity in Asia.

Light Bulbs & Rickshas. The amount of Japan's aid to and its investment in its underdeveloped neighbors is still comparatively small, but is increasing sufficiently so that some neighbors are already accusing Japan of "economic imperialism." Some $579 million in government money is going for long-term credits to enable Asian nations to buy Japanese merchandise, and about $50 million in government money and $20 million in private funds has gone into technical aid and the training of local workers. But the most significant flow of funds is coming from Japanese businessmen: Japanese firms have invested $88 million in Southeast Asia, most of it in the past three years, to buy minority interests in new ventures with Asian businessmen.

Understandably, the Japanese are risking only small amounts in fledgling economies, but the lure is irresistible. Ishikawajima-Harima Heavy Industries, Japan's largest shipbuilder, is putting an initial $1,500,000 into a shipyard in Singapore, has joined in a $2,000,000 cement plant in Malaya. Yawata Iron & Steel

Co. is supplying 49% of the capital for a $16 million steel mill in Malaya. Matsushita Electric has started a battery plant in Thailand and an assembly plant for transistor radios and TV sets on Formosa. Japanese companies run a department store in Hong Kong and a toothpaste factory in Malaya, make gasoline rickshas in Pakistan and fountain pens in India. Altogether, no Japanese companies have moved into Southeast Asia.

Forgotten Hatred. Addressing a Tokyo meeting of the seven-nation Asian Productivity Organization last week. Foreign Minister Ohira put this drive in idealistic terms: "Asian prosperity is indispensable for the establishment of world peace.'' But wily Toshiba Electric Chairman Taizo Ishizaka. 76. puts his finger on a more immediate reason why Japan should help its neighbors. "Regional economic systems are the wave of the future,'' he says. "It is natural, therefore, that Japan should be interested in strengthening economic ties with her Asian neighbors." Hopelessly isolated from joining any of the world's common markets and aware that its phenomenal economic boom cannot last indefinitely without wider trade, Japan desperately needs prosperous neighbors to buy her sophisticated products. She already sends 33% of her exports to Southeast Asia. But to make Asians really big two-way trading partners, Japan must put her money into Asian industry.

In approaching their former enemies, Japanese businessmen at first bowed ingratiatingly, apologized for "unfortunate past hostilities," and diffidently took only minority interests in ventures. But their economic aggressiveness has been encouraged by the discovery that only a few Southeast Asians still share the hostility of Philippines Chamber of Commerce President Teofilo Reyes, who warns that "what the Japanese cannot get by force, they will get with economic invasion." More often, Asians are on the side of the Malayan businessman who says: "I hated the Japanese once, but they have what I need today. As long as they're reasonable, I'm willing to forget the past."

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