In 1938 Hayashi made his biggest contribution to the spread of Reiki worldwide when he visited Hawayo Takata in Hawaii and initiated her as a Master Teacher. Sensing the uncertain future of the World he felt it important to make Hawayo Takata a custodian of his teachings.
In January 1940 it is said that Hawayo Takata had a vision of Hayashi. Sensing something was wrong she decided to set sail for Japan in March. Upon her arrival she made her way to Tokyo and things seemed normal. However in May Hayashi Sensei wired Hawayo Takata to come immediately to his summer Villa in Atami near Mt Fuji. In the presence of his wife, Hawayo Takata and his other students he committed Seppuku (Ritual Suicide).
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