Excerpts from Several Articles

 Chapter 30

From the Karafuto Nippo, 1993

"After the reunification, the economic recovery plan for the North Japan government was formulated by the Ministry of International Trade and Industry, but the enormous costs have left the stakeholders distressed.

The economy of Karafuto is currently suffering from an inefficient bureaucratic system, outdated equipment, and a social system exhausted by pervasive corruption. Furthermore, talented individuals have been fleeing to the mainland, leading to an economy dependent on the mainland and worsening public safety.

Recognizing the gravity of this situation, the government has drafted a long-term reconstruction plan while urgently listing improvement measures. They plan to collaborate with the newly established Karafuto Prefectural Government to advance these measures, but the immense budget required..."

From the Karafuto Nippo, 1994

"Government officials have admitted that the Karafuto reconstruction plan involves negotiating with various conglomerates to provide funding in exchange for resources and facilities in Karafuto. Notably, the Iwasaki and Yodoyabashi conglomerates are repeatedly clashing over Karafuto's competitive heavy chemical industry and natural gas resources.

The government is inclined to assign heavy chemical industries to the Iwasaki Zaibatsu and natural gas to the Yodoyabashi Zaibatsu, but the Futaki Zaibatsu has also shown interest, indicating that further adjustments will be needed.

Moreover, the Karafuto Bank, which has been nationalized due to its massive non-performing loans, cannot yet be handed over to a conglomerate and will have to continue operating as a government financial institution for the time being, according to a government official.

Nevertheless, the financial strain from the post-reunification bubble collapse has left all conglomerates with limited resources, prompting criticism from the opposition Rikken Seiyutō party, urging the government to 'focus on the mainland economy first!'"

[T/N-The Rikken Seiyutō (立憲政友党), also known as the Constitutional Association of Political Friends, was a historical political party in Japan. Established in the early 20th century, it played a significant role in Japan's political landscape during the Taishō and early Shōwa periods.]

From the Karafuto Weekly, 1995

"Amid the confusion caused by earthquakes and terrorist incidents by new religious movements on the mainland, the economic deterioration of Karafuto and the population exodus to the mainland are accelerating. Meanwhile, there are reports that criminals and terrorist organizations are fleeing to Karafuto, prompting law enforcement to monitor the situation cautiously.

The Karafuto Prefectural Police, which continued under the North Japan government's police structure after reunification, is plagued by corruption and bureaucratism, leading to dysfunction. An anonymous source stated that internal discipline reforms are necessary.

The infiltration of Russian mafia is particularly notable, with businesses smuggling Russians across the Strait of Tartary to become former North Japan government citizens, along with established drug and arms trafficking routes. Both domestic and ICPO investigators are involved, indicating severe organizational corruption.

[T/N- The Strait of Tartary, also known as the Tartary Strait or the Mamiya Strait (after the Japanese explorer Mamiya Rinzō), is a strait in the Pacific Ocean separating the Russian mainland from the island of Sakhalin. It connects the Sea of Okhotsk on the north with the Sea of Japan on the south.]

The ICPO is pursuing the counterfeit currency known as 'Super J,' created by the North Japan government, which is said to be a factor in the bubble collapse. The deployment of the Self-Defense Forces and the imposition of martial law following the earthquake and subsequent terrorist incidents have somewhat stabilized social unrest across Karafuto, but there are claims that behind the Russian mafia lies the oligarchs, the new financial powerhouses of Russia..."

From the Monthly Economic Magazine Zaibatsu, 1996, Excerpt from 'Countdown to Hokkaido Economic Collapse'

"The economic decline of Hokkaido shows no signs of stopping. The bubble burst turned resort developments into non-performing loans, and the government's necessity to inject massive funds into Karafuto led to cuts in public works budgets for Hokkaido.

Particularly with the front line now shifted to Karafuto, government discussions on reducing Self-Defense Forces bases are frequent, prompting Hokkaido prefectural staff to appeal tirelessly to Kasumigaseki and Nagatacho. Additionally, the influx of people from Karafuto has led to deteriorating public safety and social unrest, surpassing the prefectural government’s capacity to manage."

From the Ryodo Shimbun, 1997, Readers' Voices

"'The Hokkaido Development Bank remains.' Though the name has changed, that remains a fact. A ray of light in the previously bleak outlook of Hokkaido's economy. As a Hokkaido resident, I want to express my gratitude to the Keika-in Group for making this possible. The economic environment remains harsh, and newspaper headlines are still dominated by armed bank robbers using Russian-made guns..."

From the Karafuto Economic Newspaper, 1998:

"The resource business in Karafuto is accelerating. With government support, a project to construct thermal power plants using natural gas from Karafuto has been launched. The selected candidate sites are near the Ishikari Bay estuary in Hokkaido, Sakata City in Yamagata Prefecture, and Niigata City in Niigata Prefecture, planned as chemical complexes centered around thermal power plants.

Iwasaki Trading, deeply involved in Karafuto, Yodoyabashi Trading with its strength in resource development, and Matsuno Trading, recently renowned for handling non-performing loans, are heavily invested in this project.

However, there are concerns that the natural gas output from Karafuto alone is insufficient for profitability, leading to suggestions of reopening the closed pipeline across the Strait of Tartary to purchase Russian natural gas. The collapse in resource prices due to the Asian financial crisis has led to speculation that the Russian government and oligarchs are collaborating to influence these conglomerates for foreign currency earnings..."

From the Karafuto Weekly, 1998

"There has been a noticeable increase in Chinese residents in Karafuto. Speaking Cantonese, they are former Hong Kong residents who fled following the handover of Hong Kong to Communist China. It is said that they settled in Karafuto aiming to become Japanese citizens if South Japan won.

Karafuto, while showing some improvement, remains an attractive destination for fugitives and functions as the endpoint for money laundering in Asia's black market. Funds from drugs, arms, gambling, and prostitution are first laundered in Hong Kong and then sent to Karafuto, where the 'dirty money' eventually returns to the country as natural resources.

This network is managed by Hong Kong and Russian mafias, reflecting the power balance shift following Hong Kong's handover to Communist China..."

Background Explanation of the Runa Kidnapping Attempt Incident

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Glossary

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[Karafuto Bank]

Recognized the financial institutions in Karafuto after nationalization, planned to merge them following non-performing loan resolution.

[1995 Earthquake and Terrorist Incident]

Refers to the Great Hanshin Earthquake and the Aum Shinrikyo incident, pivotal historical events.

[Super J]

The counterfeit currency known as Super Note, originally based on North Korean counterfeit US dollars. Unlike the fictional setting of Cagliostro, the real world requires more than just counterfeit money to sustain a country.

[Russian and Hong Kong Mafias] Karafuto almost became like Roanapur. This, combined with Runa's involvement, led to the kidnapping attempt...Background Explanation of the Runa Kidnapping Attempt Incident.

[T/N-Roanapur is a fictional city in Southeast Asia, portrayed primarily in the manga and anime series "Black Lagoon." It serves as the main setting for the series, known for its lawlessness, crime 

syndicates, and gritty atmosphere. Here are some key points about Roanapur]

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Translator Note

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Here is short summary for the newspapers

1.Karafuto Nippo (樺太日報) : A daily newspaper published in Karafuto (Sakhalin) during the early 20th century, known for its coverage of local news, events, and broader geopolitical issues affecting the region.

2. Karafuto Weekly (樺太週報) : A weekly publication in Karafuto that provided in-depth coverage of cultural, social, and political developments on the island, catering to both local residents and the Japanese administration.

3. Monthly Economic Magazine Zaibatsu (経済月報 財閥): A monthly economic magazine focused on zaibatsu, large conglomerates in pre-war Japan, examining their financial activities, market influence, and economic policies.

4. Ryodo Shimbun (領土新聞): A newspaper that reported on territorial issues and geopolitical developments in the context of Japan's empire, including coverage of territories like Karafuto and its strategic importance.

5.Karafuto Economic Newspaper (樺太経済新聞): A newspaper dedicated to economic news and analysis specific to Karafuto, covering industries, trade, and economic policies affecting the region.]