To handle MacArthur, Hardy chose a strategic approach, not exerting his full force. He uncovered the accounts of Judson and MacArthur's wife Jonnie, and even MacArthur's gold reserves. However, Hardy only disclosed Judson's involvement.
Revealing Jonnie's account details would likely prompt an immediate response from MacArthur, jeopardizing his position as the Allied commander.
Hardy planned to keep MacArthur on the sidelines, knowing his arrogance would eventually lead to his downfall. Hardy intended to let MacArthur's pride cost him dearly.
The exposure of Judson's activities had already affected MacArthur. The incident had somewhat humbled his previously unshakable confidence.
Hardy informed President Johnson about the situation in Japan and requested economic and cultural rights. Previously, MacArthur would have obstructed such a request, even arguing with the president and using his influence to block Hardy's efforts.
However, following the Judson scandal, MacArthur had become considerably more compliant. He no longer wished to contest Hardy and readily conceded Japan's economic and cultural rights.
---
Upon arriving in Japan, Duncan sought to gather information by recruiting Kuroda Ryohei, a local leader. Over the course of a year, Kuroda had expanded his group to over 300 members.
Duncan called Kuroda to discuss a new assignment. Kuroda, a tall and imposing man in his thirties, greeted Duncan with respect.
"Mr. Duncan, what can I do for you?" Kuroda asked, bowing slightly.
"Duncan, I'm planning to involve you in the black market business," Duncan said.
"The black market? Are you planning to take over?" Kuroda asked.
Duncan shook his head. "Let me explain. The American trading company supplying the black market was investigated by the Federal Revenue Service. The company's owner was MacArthur's cousin."
Kuroda was taken aback. It made sense that tens of thousands of tons of food had been flowing into Japan each month; otherwise, it would have been beyond anyone's capacity.
Since Japan's surrender, the black market had flourished. With no formal law enforcement and the U.S. military neglecting to investigate or manage gangs, the black market thrived unchecked. Despite strict control over Japanese citizens, the U.S. military had ignored the black market's existence.
Kuroda now understood why MacArthur had supported the black market. "So, are you going to supply the black market?"
"Yes," Duncan confirmed. "From now on, we'll take over the supply of grain and food to the black market."
Kuroda's eyes widened with excitement. This opportunity could significantly increase his wealth and influence. Duncan's ability to control black market supplies meant commanding considerable power over Japan's gangs.
"How do I proceed?" Kuroda asked respectfully.
"It's simple. You need to approach the gang leaders and inform them that if they want to continue their operations, they must join the 'Straw Hat Group.' If they refuse, they'll be cut off from supplies," Duncan explained.
"The Straw Hat Group?" Kuroda repeated.
"Yes, the Straw Hat Group," Duncan confirmed. Hardy had named the organization, but Duncan didn't know why.
"Understood. I'll speak with them immediately," Kuroda said, bowing before leaving.
---
Japan's gangs were numerous and varied, ranging from large organizations to small groups. Following World War II, Japan's power vacuum had led to a surge in gang activity. MacArthur had initially relied on these gangs to manage the black market but had largely ignored them.
Japan had not yet seen the rise of the major gangs like the Yamaguchi-gumi, Inagawa-kai, or Sumiyoshi-kai. The country was still a chaotic environment where gangs thrived in the absence of formal law enforcement.
Kuroda went to Shinjuku to confront Ozu Ken, a local gang leader. Ozu Ken, who controlled the black market in Shinjuku and ran an underground casino, was approached by Kuroda and his men.
Ozu Ken's underlings quickly gathered around Kuroda. "What do you want with our boss?"
"Tell him the black market supply has changed. From now on, we're in charge. If he wants to continue, he should come speak with me," Kuroda said.
Kuroda then took a seat at a nearby beverage stand and ordered a Coke with ice. Ozu Ken, after hearing the news, decided to meet Kuroda.
Upon arrival, Ozu Ken questioned Kuroda. "Who are you, and what's this about a change in suppliers?"
Kuroda glanced around at the disorganized black market. "Would you prefer to discuss this here?"
"Fine, let's talk elsewhere," Ozu Ken replied.
At the river, Kuroda explained, "The American supplier has been arrested, which has disrupted your supply chain. We're now responsible for the black market supply in Japan. Do you still want to be in this business?"
Ozu Ken, realizing the gravity of the situation, asked, "You're working for the Americans?"
"Certainly," Kuroda said. "The previous supplier was MacArthur's cousin. Now that he's out of the picture, Hardy's team is taking over."
Ozu Ken realized this was a power struggle between high-ranking figures. He understood that Kuroda likely represented Hardy, who was now managing Japan's economic and cultural affairs.
"What's in it for me?" Ozu Ken asked.
"We've established a group called the Straw Hat Club. We invite you to join. We'll supply more goods, and you can make more money," Kuroda offered.
Ozu Ken saw the benefits of joining and agreed. "I'll join the Straw Hat Group."
Kuroda then moved on to other Tokyo districts. In Shibuya, Kawashita Hiroshi, the local boss, gathered his subordinates to confront Kuroda.
When Kuroda presented his intentions, Kawashita dismissed him. "How do I know you're not lying? I've been in this business for years."
Kuroda, angered by the disrespect, drew his gun and shot Kawashita dead. His subordinates, stunned by the sudden violence, were quickly subdued by Kuroda's men.
Kawashita's second-in-command, Junichiro Akita, quickly offered his allegiance. "I'm willing to join the Straw Hat Group and lead the Akita team."
Kuroda was satisfied and instructed Akita to follow him to the next district.
As for Kawashita Hiroshi, his death went unnoticed amidst the chaos. The Akita group would handle the burial, and the police were uninterested in pursuing the matter.
This was the current state of Japan's black market.