The Tyrant Billionaire

During a meeting with the Japanese Prime Minister, MacArthur had hinted that once Japan's reconstruction met certain criteria, he would consider loosening the restrictions, including allowing some of the seized factories and equipment to be repurposed for civilian use.

The Japanese government had begun to feel hopeful again.

But now the U.S. was preparing to sell off these seized assets. If they were sold to Americans, there would be no chance for them to return to Japanese hands.

It was important to note that these companies represented virtually all of Japan's heavy industries. Losing them would inflict an irreversible blow to Japan's industrial base.

Prime Minister Shigeru Yoshida hurried to meet with MacArthur, hoping the general could intervene and stop the sale.

The U.S. Occupation Headquarters was located in Tokyo's commercial district, in the city's largest building, directly across the moat from the Imperial Palace. Prime Minister Yoshida entered MacArthur's office, where the general was smoking a pipe and reading a newspaper. Yoshida bowed deeply.

"General MacArthur!"

MacArthur, who was effectively Japan's ruler at the time, had the power to appoint and dismiss officials. Even the Emperor had to pay respects to him.

"You called to say you had something important to discuss. What is it?" MacArthur asked.

Yoshida quickly presented the list of seized companies. MacArthur took it and glanced over it while Yoshida explained, "This information comes from our embassy in Washington. President Johnson has submitted this price list to Congress for approval. Once approved, these assets may soon be purchased by other parties.

"We've learned that this list was prepared by Mr. Jon Hardy, the U.S. special envoy for Japan's economic recovery."

Jon Hardy.

MacArthur shifted his corn-cob pipe.

He knew that President Johnson had recently appointed Hardy as the special envoy to address Japan's economic collapse following the failure of the Dodge Plan, with the goal of making Japan self-sufficient so the U.S. wouldn't have to continue funneling aid.

The U.S. wanted to control Japan, but not destroy it. After all, total destruction would be detrimental to their own interests. The ideal situation was for Japan to become self-sufficient, but still under U.S. control, making it easier to manage.

America had not anticipated the extent of Japan's later economic growth.

As for Jon Hardy, MacArthur wasn't particularly fond of him. He'd heard Hardy was once a Marine under his command, just a low-ranking soldier.

But in just a few years after returning to the U.S., Hardy had become a billionaire, founded the Hardy Group, and helped Johnson win the presidency. Now, this small time former soldier had been made Japan's economic envoy.

MacArthur, as the Supreme Commander of the Allied Occupation Forces in Japan, wielded the highest authority and had been used to having absolute control. Now, this economic envoy was encroaching on his domain, and he didn't like it. From the start, MacArthur had been displeased with Hardy.

Recently, he had accepted a large bribe from the Japanese.

The Japanese had pleaded with him to return some of the seized companies.

Some enterprises—like those that produced warships, fighter planes, tanks, guns, and ammunition—had to remain seized under any circumstances. But other supporting factories could go either way.

MacArthur had initially planned to return some of those companies to the Japanese as a goodwill gesture, in light of the gold bribe. But now Hardy had drawn up a price list, intending to sell off all of the seized companies, disrupting MacArthur's plans.

MacArthur hated having his plans disrupted.

He was already displeased with Hardy for encroaching on his authority. Now, Hardy was messing up his agreements, adding to MacArthur's growing resentment.

"I'll send a telegram to President Johnson expressing my concerns and see if we can ease this situation," MacArthur said, blowing out a puff of smoke.

Yoshida bowed deeply. "Thank you, General, for your mediation."

MacArthur sent a telegram to the White House office, and the office secretary presented it to President Johnson. In the telegram, MacArthur opposed the low price sale of Japan's confiscated assets, believing it would incite hostility among the Japanese people and suggested handling the matter more gently.

After reading the telegram, Johnson calmly said, "Not only is MacArthur unable to stop this, but even I don't have that power."

He knew very well.

This time, Hardy had gathered the seven major consortiums, and the pricing list was the result of their discussions.

Johnson was fully aware of the enormous influence of these seven major consortiums.

He believed that the proposal would easily pass Congress without any resistance.

As for Johnson, he wouldn't oppose it either, because he used this matter to negotiate with Hardy regarding a limited healthcare plan.

During his election campaign, Johnson had mentioned a healthcare plan, but later Hardy opposed it and proposed a limited healthcare plan as a transitional solution. After his re-election, Johnson presented this limited healthcare plan to Congress.

The plan involved funding from the federal government, local governments, and citizens to provide limited healthcare benefits to the public.

Even so, the previous vote still failed to pass.

This left Johnson feeling quite helpless.

With the Republicans holding the majority in Congress, Johnson had long anticipated that many of his policies would face significant obstacles during his presidency.

There was no doubt, when it comes to party competition, some legislators oppose just for the sake of opposition.

So they can let you know that even though you're the President, they can still make things difficult for you.

So, when Hardy presented the pricing list for Japanese assets, Johnson saw an opportunity. He proposed to Hardy that the seven major consortiums should help persuade Congress to pass the limited healthcare plan simultaneously.

In simple terms, he was using Japanese assets to benefit the seven major consortiums, so they would work to convince their own legislators.

Hardy took the proposal back to the seven major consortiums, and, out of self-interest, the other consortiums decided to use their connections to lobby the legislators.

To put it bluntly, this was a blatant exchange of interests.