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Japanese Rubber and Iron Investments in Malaya, 1900–1941

Published online by Cambridge University Press:  07 April 2011

Extract

The first Japanese investments in Malaya were in rubber planting but their most important were in iron-mining. This article traces the development of Japánese interests in these two fields and shows how these ventures contributed to the expansionist impulse which, among other factors, eventually led to the military invasion of Malaya in December 1941.

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Articles
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Copyright © The National University of Singapore 1974

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References

1 Professor Hino, Iwao and Singam, S. Durai Raja, Stray Notes on Nippon-Malaisian Historical Connections, (Negri Sembilan, Syuu Seityoo 2604/1944), p. 123.Google Scholar The 92 acres were made up of four estates and the 83,750 acres came from 81 estates.

2 See Appendix 1

3

4 A brief comment on the Japanese Planters' Association is found in German, R.L., Handbook to British Malaya, (London, 1937), p. 100.Google Scholar

5 List dated 9.9.13, enclosed in Commissioner of Land and Mines (C. L. & M.) Johore File No. 628/1913. See Appendix 1.

6 Department of Agriculture, Federated Malay States, Bulletin No. 20, Sept. 1914, p. 42. Figure was taken from Table 4, “Rubber Statistics, Malaya up to 31st. Dec. 1912 and 1913”.

7 Johore, , Annual Report, 1913, p. 9; 1914, p. 13.Google Scholar

8 Enactment No. 1 of 1917, F.M.S. It was an Enactment to impose during the War certain restrictions on alienation of and dealings in Rubber Lands of large areas.

9 Telegram, High Commissioner Malay States to Sec. State for Colonies, 6.7.17, C0273/460, 6.7.17. The breakdown of figures is as follows:

  • F.M.S. — 10,343 acres

  • S.S. — 1,511 acres

  • Johore — 100,000 acres

  • Kedah — 100 acres

  • Kelantan — nil

  • Trengganu — nil

10 See Supplement to the F.M.S. Government Gazette, 25.7.17, No. 17, Vol. IX, Notification No. 2253.

11 The Stevenson Rubber Restriction Scheme was implemented during 1922–28, followed by the International Rubber Regulation Agreement during 1934–43.

12 Nationality of ownership of rubber estates in Johore:

  • Europeans — 278,000 acres

  • Chinese —160,000 acres

  • Japanese — 54,000 acres

  • Indians — 14,000 acres

  • Malays — 3,000 acres

  • Other Asiatic races — 1,000 acres

  • Total — 510,000 acres

H. A. Tempany, Director of Agriculture, S.S. & F.M.S. Report on Agriculture Development in Johore, 1934, p. 2. This acreage was more or less static lasting till the eve of World War II. From the lists of Japanese estates in Batu Pahat and Johore Bahru it can be found that the acreage was about 44,000 acres not counting the acreage in Kota Tinggi where figures are not available. See lists 33a and 34a Aug. 1937, C. L. & M. Johore File No. 514/1928.

13 Allen, G. C., A Short Economic History of Modern Japan, 1867–1937, 2nd. rev. ed., (London, 1962), p. 87.Google Scholar

14 Nanyo Nichi-nichi Shimbun 23.8.17, under cover of minute from General Officer Commanding the Troops S.S. to Secretary War Office, London, 19.9.17, C0273/463, 15.11.17.

15 Memorandum, R.G.A. to Sec. State for Colonies, 3.1.17, C0273/464.

16 Ibid. See also Minutes of Meeting of War Cabinet, 31.5.17, C0273/464, 6.6.17.

17 Memorandum, op. cit.

18 Sir Edward Brockman, Confidential Report on Disposal of Land to Aliens 24.1.17, C0273/459,29.1.17.

19 Minutes of War Cabinet, op. cit.

21 Telegram, Gov. S.S. to Sec. State for Colonies, 27.6.17, C0273/460,.6.6.17.

22 The objective of such British policy is quite clear. As noted by a government official, “This will leave Japanese, who now own estates, free to transfer to other Japanese. I think we must put up with this as our object is the preservation of the status quo …” Ibid. See comments on file cover.

23 Rubber trees take about eight years to mature and the restrictions came at a time when the Japanese were reaping their first returns, part of which could be ploughed back for further expansion.

24 Telegram, High Commissioner, Malay States to Sec. State for Colonies, 11.4.17, C0273/459, n.d.

25 Telegram, British Ambasaador, Tokio to Sec. State for Colonies, 1.5.17, C0273/462,2.5.17.

26 Baron Heitaro Fujita acquired Nam Heng Rubber Estate in 1914. He later formed a partnership with T. Fujita and H. Fujita called Gomei Kaisha Fujitagumi of Osaka, Japan. See C. L. & M. Johore File No. 667/1914 and 473/1916. Furukawa of Tokyo invested in rubber planting as early as 1910. See C. L. & M. Johore 723/1913 and 114/1915. Okura Gomu Kabushiki Kaisha had estates at Niyor, Johore. See C. L. & M. Johore File No. 1559/1919. Mitsui Gomei Kaisha owned the Sungei Papan Estate at Tanjong Surat. See C. L. & M. Johore File No. 697/1914.

27 See Press reports entitled “Protest against Land Regulation in Malaya. Business Men Interested in Rubber Plantations Invited Pressmen to Hear their Case. Imperial Government questioned …” Japan Times, 20.7.17, C0273/462, 8.9.17.

28 Minute, Eyre A. Crowe to Under-Sec. State, Colonial Office, 4.9.17, C0273/462, 4.9.17.

29 See file comments dated 20.10.17, C0273/461, 18.10.17.

30 Above, p. 18 and fn. 9.

31 Above, p. 18 and fn. 5.

32 Information based on Press reports of Osaka Asahi transmitted by the Commander-in-Chief, China to Director of Naval Intelligence, 2.9.19, C0273/491,10.11.19.

33 The deceased was a Teikiu Okamoto. C. L. & M. Johore File No. 113/1915.

34 The land applied for was of considerable acreage and the Company was willing to recruit its own labour from China instead of the more economical method of picking from the labour recruited by others, namely the Europeans and Chinese. C. L. & M. Johore File No. 3920/1919.

35 This is made evident by a comparison of the list of Japanese rubber estate owners compiled in 1913, (C. L. & M. Johore File No. 628/1913) and the lists enclosed in C. L. & M. Johore File No. 514/1928.

36 See notes numbered 11A and 16A in Custodian of Enemy Property Johore File No. 2/1941.

37 In a recorded list of estates acquired by Japanese during the period 1.4.38 to 27.6.38 the last registered owners of some land grants were given as Baron Iwasaki Hisaya, Iwasaki Hikoyata, Iwasaki Takaya, Iwasaki Tsuneya (probably associated with the Mitsubishi zaibatsu in Japan) and Naoyah Akuzawa; and Consolidated Sangyo Koshi Ltd. was listed as the new owner. See C. L. & M. Johore File No. 714/1935.

38 K.K.N.A.K. was in existence as far back as 1914. C. L. & M. Johore File No. 210/1914.

39 An agreement was made on 7.3.27 by D.G.G.K.K. to transfer its property to K.K.N.A.K. The latter on 28.3.38 sold its rights to a new company, Showa Gomu Kabushiki Kaisha. C. L. & M. Johore File No. 848/1914.

40 C. L. & M. Johore File No. 113/1915.

41 The land grant was for 2013 acres. C. L. & M. Johore File No. 4319/1916; General Adviser (G. A.) Johore File No. 265/1918.

42 C. L. & M. Johore File No. 514/1928.

43 The application for 300 acres was made in July 1920 but was withdrawn in Sept. 1921. C. L. & M. Johore File No. 3593/1919.

44 Malayan Bulletin of Political Intelligence, December 1925, para. 193, C0273/534,15.1.26.

45 Malayan Bulletin of Political Intelligence, February 1926, para. 218, Ibid., 18.3.26.

46 Straits Settlements Police Journal, 1926, para. 16.

47 Siew, Kee Yeh, “The Japanese in Malaya before 1942”, Journal of South Seas Society, Vol. XX, Pts. 1 and 2, (1965), p. 55.Google Scholar

48 Above, pp. 18–19 and fn. 9 and 12.

49 Above, p. 18 and fn. 12.

50 Matsuye, H., “The South Seas and Japan”, Contemporary Japan, Vol. IX, No. 5, May 1960, p. 625Google Scholar. Saito is mentioned as one of the pioneers who did not neglect the South Seas after the Meiji Restoration. Other writers lauded him as one of the two consuls in Malaya who had “rendered distinguished services in the promotion and steady development of Nippon enterprises.” Iwao Hino and Raja Singam, op. cit., p. 88.

51 Sinclair, K., “Hobson and Lenin in Johore: Colonial Office policy towards British concessionaires and investors, 1878–1907Modem Asian Studies, Vol. 1, Pt. 4 (Oct. 1967), pp. 338–40CrossRefGoogle Scholar. See also Drabble, op. tit., pp. 49–50.

52 High Commissioner's Office File No. 1296/1932; G. A. Johore File No. 692/1932.

53 Nanyo Nichi-nichi Shimbun 10.9.17, quoted in letter from General Officer Commanding the Troops, S. S. to Sec. State for War, London, 19.9.17 C0273/463,15.11.17.

54 Inouye's views were reported in Japan Times 20.7.17, C0273/463, 15.11.17; Ajia Jiron (Asian Review) Sept. 1917, C0273/462, 16.11.17; Ajia Jiron Dec. 1917, C0273/475, 6.2.18.

55 Irikura, James K.,Southeast Asia, Selected Annotated Bibliography of Japanese Publications, (New Haven, 1956), p. 217.Google Scholar

56 Straits Settlements Police Journal, 1927, para. 99; Iwao Hino and Raja Singam,op. tit., p. 108.

57 Iwao Hino and Raja Singam, op. cit., p. 108.

58 According to one observer, Malayan iron was “the most important source of supply outside the territories under Japanese control. Malayan iron mines are financed by Japanese capital, operated by Japanese management and export their output exclusively to the furnaces and smelters of the Island Kingdom”. Alvin Barber, “British Malaya as a Leading Source for Japanese Iron”, Far Eastern Survey, 15.3.39, p. 66.

59 Further details of the mining certificate can be found in a report on iron-mining in Batu Pahat by Johore's Warden of Mines, 19.9.21, High Commissioner's Office File No. 792/1921.

60 Naburo Suzuki, a Japanese miner, interview, 18.5.69. Suzuki has a wealth of mining experience behind him from his close connections with Nippon Mining Co. Ltd. and later with the Southern Mining Iron Co. Ltd. He arrived first in Singapore in 1912, migrating later to Trengganu and Kelantan as a miner.

61 C. L. & M. Johore File No. 144/1921.

62 Johore, Mines Department, Annual Report, 1936, p. 12. Some Japanese were reported to have been interested in this deposit but the lack of economical means of transporting the ore to the coast discouraged them. See Mannet B. Davies, “Increased Importance to Japan of Malayan Ore”, 26.4.37, enclosed in G. A. Johore File No. 461/1937.

63 Interview, 18.5.69.

64 Johore, Land Department, Annual Report, 1921, p. 16, enclosed in C. L. & M. Johore File No. 328/1922.

65 Ibid., 1922, p. 13, enclosed in C. L. & M. Johore File No. 1119/1922.

66 Ibid., 1920, p. 9, enclosed in C. L. & M. Johore File No. 144/1921.

67 This was a reason given by Johore authorities for the approval of a further application for 7,280 acres of mining land by H. Ishihara in February, 1921. C. L. & M. Johore File No. 189/1921.

68 C. L. & M. Johore File No. 528/1931.

69 Ibid.

70 These deposits were found in Pelepah Kanan and Pelepah Kiri, Johore. Johore, Mines Department, Annual Report, 1936, p. 47.

71 This was the Third International Tin Agreement to restrict international tin production, operative from 1.1.37 to 31.12.41.

72 C. L. & M. Johore File No. 25/1937.

73 Johore, , Mines Department, Annual Report, 1937, pp. 33–4.Google Scholar

74 Op. cit.

75 Bauxite is used in building of aeroplanes. Fermor, Sir Lewis, Report upon the Mining Industry of Malaya, 1939, p. 32.Google Scholar

76 Johore, Warden of Mines' Office, Annual Report, 1936, enclosed in C. L. & M. Johore File No. 349/1937; Ag. Chief Inspector of Mines, F.M.S., Annual Report on the Administration of the Mines Department and the Mining Industries, F.M.S., 1937, p. 14.

77 See Appendix 2.

78 Ibid.

79 Emerson, R.,Malaysia, (Kuala Lumpur, 1964), p. 628.Google Scholar

80 The proportion of export duties on iron ore to total revenue in Trengganu in 1936, 1937 and 1938 was 19–4 per cent, 19–8 per cent and 19–1 per cent respectively. Fermor, op. cit., p. 90.

81 Letter, Ag. British Adviser (B.A.), Kelantan to Sec. High Commissioner, 6.11.35, Kelantan File No. 1085/1935.

82 Kelantan File No. 655/1936.

83 Fermor, op. cit. p. 91.

84 See Appendix 2.

85 Kelantan File No. 223/1937.

86 Kelantan, Lands and Mines Department, Annual Land Report, 1937, pp. 3–4, enclosed in Kelantan File No. 194/1938.

87 Ibid.

88 Memorandum, A. C. Baker (British Adviser, Kelantan) to Sir Lewis Fermor, -14.5.38., Kelantan File No. 342/1938.

89 Letter, British Adviser Kelantan to Sir Lewis Fermor, July 1938, ibid.

90 Kemaman, Land Office, Annual Report, 1346 (1928), sheet 19, para. 70, enclosed in Land Office Kemaman File No. 344/47.

91 Allen, op. cit., p. 122.

92 Letter, British Adviser Kelantan to Sir Lewis Fermor, 9.4.28, Kelantan File No. 342/1938.

93 C. L. & M. Johore File No. 528/1931.

94 Appendix 2.

95 C. L. & M. Johore File No. 25/1937.

96 Fermor, op. cit., p. 27.

97 Allen, op. cit., p. 122.

98 E. S. Wilbourn, Senior Geologist, F.M.S.,The Geology and Mining Industries ofJohore, enclosed in C. L. & M. Johore File No. 1797/1922.

99 Callis, H. G., Foreign Capital in Southeast Asia, (New York, 1942), p. 56.Google Scholar

100 Irikura, op. cit. p. 30.

101 Straits Settlements Police Journal, 1937, para. 56; also see above, p. 25.

102 Irikura, op. cit., p. 169; Grajdanzev, A. J., review article of K. Ishihara, “Japan at the Turning Point”, Pacific Affairs, Vol. XTV, No. 2, June 1941, pp. 247–52.Google Scholar