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On August 15, 1945, Toshio, in the company of other Matsushita
employees, listened as the Emperor announced Japan's surrender. Toshio on hearing
the news remarked that the company would now have to be part of a nation-wide
effort to rebuild the country. To support this effort, Toshio immediately ordered
employees to switch from military production to civilian manufacturing.
Over the next year and a half, Matsushita Electric was beginning to recuperate
its pre-war economic status. However, during this time the General Headquarters
of Allied Forces (GHQ) decided it was necessary to penalize companies that had
supported Japan's military effort by producing munitions. For Matsushita, that
penalty involved the removal of one executive officer. Normally Konosuke, as president
of the company, would accept responsibility and step down. With the future of
Matsushita in mind, however, Toshio decided that he should be the one to leave.
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