[Congressional Record Volume 140, Number 145 (Friday, October 7, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 7, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                      VICTIMS OF REICHSBANK NOTES

  Mr. MURKOWSKI. Mr. President, I rise today to speak out on a matter 
of great importance to a multitude of the people of Taiwan and many 
Taiwanese-Americans. My long held admiration for the courage of the 
people of that nation is no secret and so I have become greatly 
troubled that I have not received an answer from the Government of 
Japan regarding the circumstances underlying the allegations of the 
forced issuance of Reichsbanknotes in Taiwan by the Government of 
Japan.
  At issue, Mr. President, is the revelation that the Government of 
Japan, beginning in 1924, mobilized their colonial police and the 
military policy in Taiwan to compel the Taiwanese to sell their farm 
lands and other properties to raise cash to buy German Reichsbanknotes. 
This saga goes back to 1922 and 1923, when Reichsbanknotes, the German 
currency in circulation at that time, were given to the Japanese 
Government by the defeated German Government to fulfill a portion of 
Germany's obligation of reparation to Japan under the provisions of the 
Versailles Treaty. In Taiwan, Japanese governmental enterprises, 
including the Taiwan Sugar Co., the Taiwan Tobacco and Wine Monopoly 
Bureau, and the Taiwan Salt Co., paid a portion of employee salaries to 
its Taiwanese employees by the transfer of Reichsbanknotes.
  The Government of Japan has in recent years acknowledged its 
obligation to redeem these Reichsbanknotes because similar notes held 
by citizens of South Korea were retired in August 1965 when diplomatic 
relations between South Korea and Japan were established. 
Reichsbanknotes sold to the Taiwanese by the Japanese, however, have 
not been retired as of this date even though several demands have been 
made upon the Japanese Government by the Taiwanese Reichsbanknotes 
Creditors Association since 1973.
  Mr. President, because of the compelling evidence presented to me and 
my colleague, Senator Robb of Virginia, the Foreign Relations 
Committee's East Asian and Pacific Affairs Subcommittee on which we 
serve has made not one, but two direct inquiries to the Japanese 
Ambassador regarding this matter. To date, we have receive no response 
from the Government of Japan.
  At this time, Mr. President, I ask unanimous consent that a 
translated version of a news story that appeared in the December 25, 
1993, edition of the Mainichi Shinbun be printed in the Record. This 
news article documents first hand accounts of how parents of surviving 
Reichsbanknote holders were forced by Japanese colonial police to buy 
Reichsbanknotes from the Japanese Government 70 years ago.
  There being no objection, the translation was ordered to be printed 
in the Record, as follows:

       Lin Mu-Zon: Born July 31, 1933, Resides in Pintung County, 
     Taiwan.
       Grandfather owned and operated coal mining in Taipei and 
     grandfather and father owned 960,000 square meters (237 
     acres) of land for rice and sugar cane plantation. Japanese 
     police and neighborhood unit head forced my grandfather to 
     buy Reichsbanknotes. My grandfather refused and then Japanese 
     military police joined Japanese police, if my grandfather 
     refused to buy, they will put my grandfather into prison. So, 
     in order to satisfy demand of the Japanese police and 
     Japanese military police, my grandfather sold one third of 
     land for 5 luggagefuls of Reichsbanknotes.
       The land my grandfather sold was turned over to Taiwan 
     Sugar Co. (Japanese Government Enterprises) and the land 
     today is still owned by Taiwan Sugar Co. The current value of 
     land sold by my grandfather is estimated at 20 billion 
     Taiwanese yen (U.S. $800 million).
       Ask to return my grandfather's land to my family.
       Chen Chi-Yao: Born March 7, 1925, Resides in Kaohsiung, 
     Taiwan City.
       Drafted by Japanese Army. There was a typhoon upon 
     returning home after World War II, I discovered a bagful of 
     Reichsbanknotes stored in the attic of my home.
       According to my mother, my father was doing trading rice 
     and sugar with Japan. Instead of cash, Japan pay one third at 
     the beginning and later one half of payment to my father in 
     Reichsbanknotes. At the beginning of trading, rice and sugar 
     suppliers accepted a portion of payment in Reichsbanknotes, 
     but later the suppliers refused to accept Reichsbanknotes. 
     due to this my father sold property to cover the loss and 
     send my two aunts to be employed by other to earn living.
       Chen Tien An: Born October 10, 1921, Resides in Tainan 
     County, Taiwan.
       My father owned and operated family grocery store with 
     average income. Japanese police and neighborhood unit head 
     came and forced my father to buy Reichsbanknotes which my 
     father left when he passed away. I was mechanics employed by 
     Japanese Navy Base in Kaohsiung during World War II. Japan 
     can afford to buy back Reichsbanknotes from us now.
       Chen Chin Shan: Born November 15, 1927, Resides in Ping-
     tung County, Taiwan.
       My father owned 500 ton ship and was doing trading. My 
     family was wealthy so I went to Japanese school with Japanese 
     children instead attending Taiwanese school for Taiwanese 
     children.
       My father was forced to buy these Reichsbanknotes currently 
     owned by my family by Japanese Government. My wife's family 
     also owned Reichsbanknotes. My father-in-law's elder brother 
     was mayor of township and Japanese Government forced him to 
     buy Reichsbanknote.
       Liu Jin-Chang: Born March 6, 1923, Resides in Hsin Chu 
     County, Taiwan.
       Farm income alone can not support the family therefore my 
     father went to Taiwan Sugar Co. and A-Li Shan Railway Co. to 
     work as a temporary employee. One third of my father's salary 
     was paid in Reichsbanknotes. My father died when I was a 
     child. My mother kept Reichsbanknote in the cabinet believing 
     that Japan will repay for Reichsbanknote.


                  japan's rule on taiwan and repayment

       Colonial Rule: After Sino-Japanese War in 1894, China ceded 
     Taiwan to Japan. Japan established Taiwan Governor's office 
     to rule Taiwan for 51 years. During that time native 
     (Abroginees) revolted against Japan and were crushed by 
     Japanese Army (Wu-Shia Incidence). Japan's policy was to 
     force Japanese culture and language on Taiwanese.
       Demands for Repayments: 1952 peace treaty was signed 
     between Japan and Taiwan. Demand for repayment on property 
     was to be determined separately. In 1972 Japan established 
     diplomatic relations with People's Republic of China and 
     terminated its diplomatic relation with Taiwan. Due to this, 
     this problem is still unresolved.
       Approach to Demands: Japan paid 2,000,000 yen for family of 
     each person who died while serving in Japanese army. Military 
     savings, salary and pensions shall be paid in accordance to 
     wholesale price index. Victims demand 2000 times and Japanese 
     Government is asking for 20 times of the amount of 1945 
     price.

  Mr. Robb. Would my distinguished colleague yield for a moment? I 
thank the Senator.
  As my friend from Alaska, the ranking Republican on the East Asian 
and Pacific Affairs Subcommittee, knows, I too, consider myself a 
friend of Taiwan and would like to associate myself with my colleague's 
remarks in that regard. Senator Murkowski and I are not the only 
Members of this Body who have sought to determine the true 
circumstances surrounding this matter of post-World War I reparations 
and the Government of Japan's use of Reichbanknotes in Taiwan. Our 
Department of State has approached the Government of Japan about this 
controversy. Let me quote what the State Department was told,

       The Government of Japan has researched this issue 
     previously and found no evidence that the activities which 
     form the basis of the Taiwan Reichbanknote Creditors 
     Association's allegations against Japan took place.

  Mr. President, despite the Japanese Government's statements to the 
contrary, I have in my possession a transcribed news story from the 
Taiwan Daily News dated August 19, 1930. The headline reads and I 
quote, ``One Million and Five Hundred German Bonds received from 
Germany as Reparation Payments to be Sold to the General Public by 
Japanese Government.'' Mr. President, I ask unanimous consent that this 
news story, too, be printed in the Record. I thank the Senator from 
Alaska for yielding to me.
  There being no objection, the translation was ordered to be printed 
in the Record, as follows:

              [From the Taiwan Daily News, Aug. 19, 1930]

 One Million and Five Hundred Bonds Received From German as Reparation 
      Payments to be Sold to General Public by Japanese Government

               (Telephone From Tokyo on 18 (August 1930))

       Government of Japan has decided to sell German Bonds paid 
     to Japan between April and August this year to be sold to 
     public and announced that applications must be submitted to 
     Ministry of Finance by August 31 (1930) and terms are as 
     follow:
       Qualification--Creditable merchants who has been engaged 
     trading with Germany for last three years.
       Commodities purchased by merchants from this Reparation 
     credit must exclude luxurious items.
       Minimum purchase to be 50,000 Marks.
       The purchasers to receive Reparation Credit from Japanese 
     Imperial Government Reparation Material Transfer Commission 
     in London.

  Mr. MURKOWSKI. Mr. President, I thank the Senator from Virginia. I 
hope that the Government of Japan will be responsive to the 
subcommittee's requests for information so that we can make an informed 
decision as to the proper role for our Government in resolving this 
dispute.
  Mr. President, I yield back the floor.

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