Priority Production System (PPS) implemented during 1947-8 aimed at a leap in coal and steel production as the first step for the Japan's post-war economic recovery. (1) We discuss a case of private business negotiation before the implementation of PPS, which suggests a possibility of private transactions of coal and steel in the market instead of PPS. (2) one reason for PPS implementation was the world-wide regulation of foreign trade, and the difficulty to import oil in particular. (3) Black market for coal prospered particularly among consumer good industries, but rationing of coal to strategic industries seemed rather effective. (4) The dispersion of purchasing prices of coal among industries was very large in 1947 due to price regulation and different purchasing power of industries.
