From MacArthur's Reminiscences pp. 282-284 cited in Richard B. Finn. Winners in Peace: MacArthur, Yoshida, and Postwar Japan (University of California Press, 1992), p. 29:

First, destroy the military power. Punish war criminals. Build the structure of representative government. Modernize the constitution. Hold free elections. Enfranchise the women. Release the political prisoners. Liberate the farmers. Establish a free labor movement. Encourage a free economy. Abolish police oppression. Develop a free and responsible press. Liberalize education. Decentralize political power. Separate the church from state.