Japan: The Modernization of an Ancient Culture. Series on Public Issues No. 3.

This booklet, one of a series of booklets intended to apply economic principles to major social and political issues of the day, traces the modernization of the ancient culture of Japan. Four major areas are covered: (1) "An Ancient Culture" covers the period from the first settling of Japan through the Heian period, the medieval ages, the Meiji restoration, and the development of Japan as a world power. (2) "Postwar Japan" covers the rebuilding of Japan, economic recovery, and social and political change. (3) "Contemporary Japan" deals with Japanese industry, lifetime employment, labor unions and management, production innovations, domestic problems, environmental and social issues, farm subsidies, and budget deficits. (4) "United States-Japan Relations" covers Japanese concerns, trade frictions from the Japanese perspective, government subsidies, Japanese protectionist measures, agriculture, and national defense. A concluding section stresses the need to remove all trade barriers in an atmosphere of mutual understanding. (IS)