History of Japanese Migration to Peru, Part III (Conclusion)

Author(s): Toraji Irie and William Himel

Source: The Hispanic American Historical Review , Feb., 1952, Vol. 32, No. 1 (Feb., 1952),
pp. 73-82
Published by: Duke University Press

Stable URL: https://www.jstor.org/stable/2508910

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 HISTORY OF JAPANESE MIGRATION TO PERU,
PART III (CONCLUSION)

ToRAJi IRIE, translated by WLLIAM HIMm

CHAPTER XVII, PRESENT CONDITIONS AND

T'HE IMMIGRATION RESTRICTION LAW

PART I, IMMIGRATION AFTER CESSATION OF CONTRACT LABOR AND

ACTIVITIES OF THE RESIDENTS

The number of Japanese who entered Peru during the seven years
between 1924 and 1930, subsequent to the cessation of contract immi-
gration in 1923, was as shown below. The figures include some non-
immigrants.
1924 1925 1926 1927 1928 1929* 1930 Total
751 1,037 1,362 1,423 1,153 1,327 880 7,933
(Overseas Ministry, Migration Statistis)

2,255 of these went through emigration companies as shown in the

following table, but the majority went independently, as a comparison
of the two tables will show.
1924 1925 1926 1927 1928 1929 1930 Total
335 306 496 392 312 222 139 2,255
(Statistics of the KKKK)

Most of those who went to Peru during this period, whether

through emigration companies or not, were called by friends and rela-
tives residing in Peru. The population increased as follows: Accord-
ing to a census of 1918, the total was 9,891 and by the time of the
1930 census, 20;385. A survey by the Ministry of Foreign Affairs
showed 21,127 in 1934, but this should probably be about 25,000 since
some people did not report.
This population increase was accompanied by an improvement in
the group's economic position. Many merchants and manufacturers
in the urban areas had a capital of several tens of thousands, and
some employed a number of Japanese and Peruvian men and women
in factories making automobile parts, hats, light bulbs, etc. Others
were successful in lumber, furniture, brewery, and other businesses.
Most of these activities were developed by contract laborers who had
come to Peru without any capital.
The Peruvian Cotton Company, Ltd. and the Retes Agricultural
Company were established with Japanese capital in 1926 and 192830
8O Some sources give the date 1927.

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74 THE HISPANIC AMERICAN HISTORICAL REVIEW

respectively. rpThe Retes C(ompany later added a subsidiary known as

the Iluaral Cotton Milling Company.
An occupational breakdown of the 21,127 residents as of 1934 is
as follows:

Classification Number Percentage

Total in occupations .............................. 7,612 10 0% C/o

Total including family inembers ................... 21,127 (100 )
Agriculture ................................ 1,899 24.9 %
Total including family members ................... 5,670 (26.8%c)
Manufacturing ................................ 451 5. 5.9 %
Total including family members ................... 1,706 (8.9% )
Business ................................ 4,763 65.5%
Total including family inembers ................... 12,838 (90.5% )31

Thus, over 60'%, were in business, 535(/2 in agricultu

manufacturing. D)lring the peak of the contract period most Japanese
had gone to sugar plantations as agricultural laborers, but very few
continued on there. The world-wide decline in sugar drove them
away. Moreover, sugar plantations were operated directly by large
owners, and the land, which was bought and sold in big plots, wvas
expensive, making it impossible for persons with little capital to enter
this field. But, the sudden rise in cotton-growing presented an oppor-
tunity for small independent operators. In this type of agriculture
the tenant system is practical, whereas direct operation by large
owners is disadvantageous because tremendous outlays of fixed capital
which cannot quickly be recovered are required. Cotton also requires
careful cultivation. Many Japanese saw an opportunity to demon-
strate their ability. Most of the farmers who became independent
took up cotton-growing. From 1923 the number of independent farm-
ers of all kinds (cotton, potatoes, bananas, etc.) increased as follows:

Year Numb er

1923 . 1145
1924 . 1145
1925 . 1347
1926 . 1388
1927 . 1504
1928 . 1492*
1929 . 1620

* Decrease due to lack of report from Libertad Dept.

(Overseas Ministry, Peruvian Agriculture and the Japanese)

31 This figure is inaccurate, actually, about 60.7 per cent.

2 Actually, about 25 per cent.

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 DOCUMENTS 75

In 1934 cotton growers numbered 1,136. The acreage, crop and

sales were as follows:

Average
Number Crop per Sales Price
Area under of 1934 Crop Fanegada Valve per Quintal
District Cultivation Growers (qwiintals) (quintals) (in Soles) (in. Soles)

Pacasmayo 20.00 1 1,200 60 24,000 20.00

Chimbote 51.00 2 2,260 45 45,000 19.90
Pativilea 200.15 64 16,463 83 328,900 20.00
Huacho 342.00 23 45,310 127 872,285 19.25
Chancay 2,248.25 489 270,000 120 5,973,603 22.05
Lima 1,648.00 556 172,500 106 3,528,650 20.40
Cafiete 51.60 1 5,000 97 28,000 23.60

TOTAL 4,561.00 1,136 512,733 112.4 10,890,638 21.24

(Emnigration Reports, Vol. VIII, No. 2)

The most successful cotton growers were Nikumatsu Okada and

Hatsusaburo Motonishi, both from Hiroshima-ken. They went to Peru
in 1899 with the first group, began cotton tenant-farming together
in 1912 and, favored by fortune, made rapid progress. At one time
they were ill difficulties, but recovered and finally achieved preemi-
nence in Chaiicay valley. It is said that the land they cultivated
amounted to 3,000 cho.33

PART II CONSIDERATIONS ON URBAN CONCENTRATION

The concentration of Japanese in urban districts early attracted

unfavorable attention.

When the Japanese immigrants first entered Peru, they worked, in general,
oln plantations. After the expiration of their contracts, they came to the cities-
especially the capital-to engage in small business and to work as house boys.
This completely new development was regarded with disfavor by the government
and people of Peru. For sixty years, Chinese, ex-slaves, and others controlled
small business in Peru. Two years ago I reported in detail on the flourishing
economic activity in Lima's Chinatown. At present there are undesirable tenden-
cies which adversely affect the well-being of enterprises belonging to Japanese.
With their entry into the field, the fear is expressd that eventually no small
business will remain in the hands of Peruvians. It is natural that in recent
times there is a tendency to oppose the concentration of Japanese in the cities.
(Report of Hiroshi Morobashi)

This was written in the early Taisho34 period. Since then, there
has been an increasing tendency to concentrate in the cities. During
and after World War I Japanese residents spread into commerce and
industry, especially commerce. Many became laborers in urban areas.
As those in business and those in the labor market came into compe-
33 Uinit of measure. 1 cho equals 2.45 acres.
3 Japanese Emperor, 1912-1926.

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76 THE HISPANIC AMERICAN HISTORICAL REVIEW

tition with natives, the hostility of the latter increased. Intellectuals,

politicans and labor interests began to take notice. In 1930, Presi-
dent Leguia, one of the benefactors of Japanese immigrants, fell from
power after eleven years in office. Peruvian polities were in a chaotic
state, and persons connected with the labor movement took advantage
of the situation to voice their hostility.
The extent of the concentration as of 1930 may be seen from the
following table:

Distribution of Japanese in Peru-1930

Lima City ................... 8,204 Puno Department ............ 6

Callao City .................. 1,990 Ayacucho Department ........ 21
Lima Province ............... 7,531 Tacna Province .............. 12
Ancash Province ............. 329 Moquegua Province .......... 11
Libertad Department ......... 749 Junin Department ............ 575
Lambayeque Department ...... 259 HuAnueo Department ......... 48
Piura Department ............ 137 Loreto Department ........... 19
lea Department .............. 341 San Martin Department ...... 30
Arequipa Department ......... 123 Total .. 20,385

Of the total of over 20,000, more than 10,000 were clustered in

Lima and Callao. Japanese officials in Peru had long been concerned
about this but, because of the physiography of Peru and other factors,
could find no easy solution. The Andean range, which runs north
and south near the Pacific coast of Peru, divides the country into three
parts-costa, sierra and montana. Since 1899, with few exceptions,
the Japanese had centered their activities in the coastal region because
the industry of Peru was based there and because this area offered
opportunities. Most Peruvians, Chinese, Italians, and others were
likewise concentrated in this limited area.
Some Japanese entered cotton cultivation with more or less success,
but others who disliked the life on sugar plantations continued to drift
to the cities where they made out fairly well. With their small capi-
tal, they made opportunities and could not withdraw simply because
they had incurred the displeasure of the natives. But, as urban con-
centration increased, a few individuals urged: "Go to the montania,
go to the montana." In earlier times, some had gone there, but most
were not attracted to the area. Urban enterprise was more suited to
their impetuous nature and appealed to some as a way of becoming
rich quickly and returning home.
Although cotton cultivation had proved profitable, opportunities
for expansion were limited by the shortage of suitable land. In places
where Peruvians had failed Japanese were able to produce splendid

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 DOCUMENTS 77

cotton. At first the land owners had welcomed them wholeheartedly,

but later it was said, "The Japanese produce cotton on Peruvian
plantations and then ship it all to their native land." To a slight
extent the attraction of cotton-growing and other agricultural pursuits
in rural areas adjacent to the cities reduced urban concentration,
but it did not alleviate the long standing antagonisms. In the final
analysis, urban concentration and urban activities, although they
promoted this hostility, were the two chief factors which brought
about the economic well-being of the Japanese in Peru.

PART III JAPANESE IN THE MONTASM

On the recommendation of Saburo Kurusu,35 minister in Lima,

the Peruvian Colonization Association was established in March 1931
under the slogan "Go to the montaiia." The montaiia is the Amazon
basin area which starts from the eastern base of the Andes at an ele-
vation of 2,000 meters above sea level and spreads out in the center
of the South-American continent. It has an area of 8,700,000 square
kilometers and is bordered by Ecuador on the north, Bolivia on the
south, Colombia on the northeast and Brazil on the east.
In the year of its founding, the association purchased 1,000 cho
of land on the banks of the Punizas River in the Chanchamayo valley,
and in June of the following year (1932) six families were brought
in as settlers. Subsequently, more than ten families entered one after
the other. The land is located within the Perene colony of the (Brit-
ish) Peruvian Corporation. (It was here that Aoyagi came in 1894
to discuss the possibility of settling Japanese.) Coffee is the chief
product; yucca, bananas and corn are also cultivated. In addition
to a government grant, the Punizas colony started out with 120,000
soles invested by Japanese residents of Peru.
This was not the beginning of Japanese enterprises and activities
in the montaia. Some had resided in the Chanchamayo valley for over
twenty years. Others had been struggling for over thirty years along
the banks of the Madre de Dios River. It had also been more than
ten years since the Hoshi Pharmaceutical Company bought land in
the Tulumayo River basin. On a smaller scale, Japanese had been
active in various other areas. The following sketch of the Japanese
in the montania is based on observations made in 1932 by Jutaro
Tanaka and Tatsujiro Kurotobi:

1. Hoshi Pharmaceutical Company Plantation.

BY purchasing "Pain-avaku" hacienda in 1918. Halime Hoshi of the Hoshi

"Served as special envoy to the United States immediately preceding the

Pearl Harbor attack.

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78 THE HISPANIC AMERICAN HISTORICAL REVIEW

Pharmaceutical Company got an early start in Japanese capitalistic developments

in the montana. The hacienda, situated on the right bank of the upper Huallaga
River north of Huanuco, is said to have an area of 300,000 hectares. At present,
only a part of it is utilized-for the cultivation of yucca. The rest remains
uncleared. Senshi Saito (of Lima), who is experienced in colonization enterprises,
has general administrative charge, while Masao Sawada (of Huanuco) is the
manager.

2. Chancharayo Valley.

The first Japanese in this area. were 300 colonists settled by the Morioka Com-
pany about twenty years ago on the I Naranharu " hacienda near San Ramon
in the Chanchamayo valley. They later scattered around the valley or lived on
the hacienda as ''mehorero'' (coffee tree contractors). Some became small
traders in San Ramorn and Tarma. Successful "'mehorerol" now have small
haciendas. Jimpachi Shimizu has 24 cho of land at Santa Elvira and Tsutae
lino, over 100 cho. near La Merced. Both engage in coffee cultivation. Among
those who have their main business in Lima. and elsewhere but also operate in
the Chanchamayo valley is Nobusada Yagusuku (Okinawa-ken) who runs the
"C~hotoniaII hacienda at a. point four hours by horse from San Ramon. Tajiemon
Nishi (Okinawa-keii) and others invested funds to organize the Peruvian Agri-
cultural and Forestry Company of Eintasu which has 200 cho of land at the con-
fluence of the Paucartambo and EThtasu rivers. Kiichi Onari of San Ramon and
Magoichi Okihiro of Tarma, who operate general stores, are prominent business
men of the area.

3. Lower Huallaga River Valley.

Since ancient times there have been many inhabitants in the Yurimaguas
region of the lower Huallaga. River because the land is very fertile, the climate
good and health conditions satisfactory. There, fifteen or sixteen Japanese en-
gage in cotton cultivation and cattle-raising. Outstanding among then is Kozo
Ikeda (Hiroshima-ken) at San Jose to the north of Yurima-guas. He is well
known as far away as Iquitos. He grows cotton, raises cattle, and has obtained
gratifying results year after year.

4. Maran6n River VValley.

Kotaro Tsuchiya has achieved success on the banks of the Marafoin River
comparable to that of Ikeda on the Huallaga River. Near Limon, two and a half
days by steamer upstream from Iquitos, he has 5,000 cho of land. On this land
seventy or eighty natives are employed to gather the balatA (hard gum) from
trees growing wild. It is transported to the market at Iquitos.

5. Iquitos.
This city on the upper Amazon is the last river-port reached by ocean-going
steamers. It is in touch with the economies of both the eastern montana and
Brazil. About fifteen or sixteen Japanese live in the city. A decade and a half
ago when rubber prices took a sudden rise, the Japanese who now reside in
Iquitos came to the montana as rubber gatherers. When prices fell, they made
their way to the city. Their principal occupations are barbering, carpentering,
and running general stores, but they have not achieved any great economic success
in their short time here.

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 DOCUMENTS 79

6. Ucayali River Valley.

(a) In the vicinity of Contamana which is in the center of the Baja Ucayali
River basin, five persons from Okinawa-ken cultivate sugar cane which they
process and sell in Iquitos.
(b) A few Japanese also reside along the Upper Ucayali. They cultivate rice
which is shipped to Iquitos.

7. Pachitea Biver Valley.

In the vicinity of Puerto Inca in the Pachitea River valley are the Kudo and
Taba settlements. The former is owned by Suketsune Kudo (Miyagi-ken) and
consists of 450 cho of land on which rice is cultivated. The latter is owned by
Yamato Taba (Okinawa-ken) and consists of 150 cho of land used for coffee and
rice cultivation and cattle and pig-raising. Both settlements were purchased from
La Colonizadora Land Company and are regarded as the best equipped along the
Pachitea. They are conveniently located for river transport to the port of
Iquitos. When a 120 kilometer motor road from Puerto Inca to "'Mufia" is
completed, it will be possible to ship goods by road directly to Lima., via Cerro
de Pasco. Future prospects for these settlements are bright.

8. MadIre de Dios River Valley.

The Madre de Dios River rises in southeastern Peru, traverses the northern
part of Bolivia and flows into the Madeira as it enters Brazil. At the time when
rubber prices were high, many Japanese came here as rubber gatherers. At one
time they almost monopolized water transport around Maldonado. Later, as
prices fell, some went to Brazil and others scattered along the coastal region of
Peru. Only forty or fifty remain at present. All live in Maldonado and engage
in business. The roads built long ago still remain, the land is fertile and pros-
pects for the future are good. In recent times there has been much interest in
the montaila and development of the area seems imminent.
(Commercial Affairs Bureau, Survey Report
of the Peruvian& montania)

PART IV IMMIGRATION RESTRICTIONS AND REFLECTIONS

The Japanese in Peru were suddenly faced with some very potent
obstacles. On June 26, 1936, the Peruvian government issued a Su-
preme Decree restricting immigration and business activities of for-
eigners as follows.36

1. The number of immigrants from any one country must not exceed two to
a thousand of the total population. Immigration from each country is thus
limited to 16,000.
2. Immigration in racial groups is forbidden.
3. Foreigners living in Peru who wish to leave the country and return must
apply to the Peruvian government, and, in accordance with regulations, record
the fact on their passports. But if their quota is filled while they are away or
before that, they cannot renter until vacancies exist.
4. Foreigners who reported the fact that they were already married at the

36From Arts. 1, 3, 4, 5, 10, and 11 of the decree. See Peru, Ministerio de

Relaciones Exteriores, Boletin del Ministerio de Relaciones Exteriores 1936, pp.
432-437.

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80 THE HISPANIC AMERICAN HISTORICAL REVIEW

time of examination of their passports for entering Peru, may send for their
wives in the old country. But they must prove that they are able to support them,
and they must be included in the established quota.
5. Shops, factories and various enterprises are obliged to hire at least 80
per cent Peruvians and no more than 20 per cent foreigners in accordance with
law. This proportion holds for enterprises and occupations conducted by Peru-
vians and foreigners in each Province.
6. Shops, occupations and professions conducted by foreigners must not exceed
20 per cent. Tenant-farming must also follow the above ratio.
7. Foreigners who engage in enterprises and occupations which are not within
the above ratios may not transfer ownership of their shops to other foreigners.

This law applied to all foreigners and, while not directed specifi-
cally against Japanese, it dealt them a heavy blow. When Matsunaga
(an official from Japan) arrived in Peru, Tatsujiro Kurotobi, head of
the Japanese Chamber of Commerce, described the situation as follows:

Last June 26, the Peruvian government suddenly issued a Supreme Decree
restricting immigration and business activities of foreigners. The letter of the
law is general, but in effect it would prohibit Japanese immigration. If the law
is literally enforced without qualification, not a single Japanese will be permitted
to enter hereafter. In addition, present residents will be unable to re-enter if
they leave the country, and they are not permitted to send for their wives and chil-
dren. Furthermore, freedom of enterprises and occupations has been taken from
them. They cannot transfer shops which they now own, and they have no hope
of getting permission to open new ones.
Agriculture is also affected. There has recently been a sharp increase in the
number of Japanese moving from the cities to the villages to engage in agricul-
ture and in the number of those who farm land or who have become tenant
farmers. Under the quota relationship established there must be eight Peruvians
to two f oreigners. Tenant-f arming by f oreigners is permitted only within this
ratio.
Japanese tenant farmers are mainly cotton growers. The above ratio does
not apply to the country as a whole, but to each individual district. Therefore,
no matter how favorable a region may be from the point of view of farming
production and sales, Japanese tenant farming will not be permitted if the quota
for the area is filled.
Considering the f act that many industrial enterprises already established in
Lima and the surrounding country are foreign-operated, it is plainly evident that
Japanese will be prevented from going into them because of the above ratio or
some other obstacle.
There are no restrictive provisions on the renting of plantations from land-
lords by means of large capital investments or on those who operate them under
contract, but whenever selection of tenant farmers is an essential consideration,
then the establishment of a legal quota does great harm to freedom of selection
and, consequently, must be considered a blow to future investment and operation.

In spite of this law and other matters of the past which gave rise
to legitimate indignation, the 25,000 Japanese residents have been able

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 DOCUMENTS 81

to secure a place for themselves in Peruvian life in the course of the

thirty-eight years since the first ones arrived.
Several regrettable events in connection with this account should
be mentioned:

Since there were no places of amusement on the plantations, gambling, drink-

ing and adultery flourished. Recently, the managers have cooperated with Japa-
nese supervisors to correct this situation. They remonstrated with gamblers and
put persistent offenders in jail. There is now no gambling except that carried on
secretly in millet fields or openly in the Chinese clubs of nearby towns.
Those who go to town to gamble cannot be easily restrained because they are
outside the jurisdiction of the plantation. The amount taken in up to now by
the club operators may amount to several tens of thousands of yen. Drinking has
not been as heavy as among the natives and has given no cause for alarm. But,
adultery was comparatively widespread because the number of married men was
small (less than 70 out of 800 at Canete) and because prostitutes were sneaked
in from towns only about once a year. The supervisors tried hard to correct the
situation and offenders were put in jail. Women who committed adultery had
their hair cut off, and persistent offenders were driven off the plantations. At
present, the situation is not very bad.
Because a shortage of women led to the evils described above and because
married couples are obviously more stable and hardworking, the plantation mana-
gers arranged with the emigration companies to make every effort to bring in
married men, by changing the original 25 yen fee for each immigrant to a fee
of 30 yen for every woman and 20 yen for every man.
(General Situation of Remittances, etc. of
Japanese Immigrants Resident in Peru, S.A.)

In the days of contract labor, emigration companies received a

recruiting fee from the plantation and a transportation fee of 25 yen
from the immigrant. This arrangement was an indirect cause of the
collapse of the contract labor system. It is said (source same as
above) that while former President Leguia was in office, the Morioka
Company gave him 10 yen for every laborer brought in. This story
is probably without basis in fact.
The pioneer merchant in Peru and in all South America was Shotai
Kitsutani. He went to the United States at an early date and became
a clerk in a Japanese store in San Francisco. At the urging of
Teikichi Tanaka, he moved to Peru and opened a shop, the Kitsutani
Company, in Lima. The store prospered from the time it opened.
By 1905, a branch had already been set up in Peru's second city,
Arequipa. Later, another branch was opened in Lima and a furni-
ture factory set up. World War I stimulated his good fortune. He
founded a bank and a blanket business and employed many Japanese
in his various enterprises. A central office was established to co6r-
dinate the activities of his financial empire.

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82 THE HISPANIC AMERICAN HISTORICAL REVIEW

Kitsutani naturally wielded influence among the Japanese resi-

dents and was well known as far away as Chile and Argentina. Prob-
lems which had to be discussed with the president were brought to
him. He scurried about as a private good-will ambassador and visited
all parts of the country. To Japanese capitalists, he was always talk-
ing about the charm of Peru and the rosy prospects for enterprises
there. The deposits of Japanese residents in his bank totaled hun-
dreds of thousands. When the post-war depression struck this finan-
cial empire, its enterprises, year after year, went increasingly into the
red. Money was borrowed on the security of merchandise, factories,
stores, and other property. When this was used up, Kitsutani turned
to the deposits in his bank and, despite the opposition of a bank official,
ran through 600,000 in no time at all. Day and night he was in a
state of anguish as he sought a way out of the difficulties, but the
situation had become hopeless. His suicide on March 18, 1925 was a
great blow to the Japanese residents. After his death, when the per-
sons concerned were settling affairs, it is said that they had to borrow
chairs from neighbors because all of Kitsutani's furniture had been
confiscated.

Translator's Note: The translation of the quotation appearing at the middle

of page 440 of the August, 1951, issue of this Rmvimv is in error. The Oscar
Heeren mentioned was Peruvian Consul-General to Japan, not German Consul-
General to Peru. The quotation should read:
After arriving in Lima, I went to Chinatown and asked if any Japanese were
there. They told me 'no,' but after two or three days I met Tatsu Ban-the
only one-who told me that lie was brought to Peru by a German, Oscar Heeren,
who had resided in Japan from 1868. When a provisional treaty was concluded
between Japan and Peru in August 1873, Heeren was appointed Peruvian Consul
General. He made many acquaintance among prominent Japanese, and it was
he who induced Korekiyo Takahashi to buy the silver mine in Peru. Ban stated
that it was after Heeren retired from his post in Japan that he went with him
to Peru. Ban invited me to his hotel and entertained me. Since he had not
spoken Japanese for a long time, he asked me to overlook his errors, and we
spoke freely. He said that he was some sort of technician for the Central Railway
of Peru. Meeting Ban in Peru was a great pleasure. From him I gained much
that was useful in my subsequent travels (As told by Ikutaro Aoyagi).

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