MEMO FOR RECORD : (SCAPIN - 1438)
27 December 1946
1. Memorandum for the IJG from GHQ, SCAP, AG 091.4(2 Oct 45) ESS, subject: Authorization No. 1 Living Expense Allowances to Axis Nationals Domiciled in Japan, permitted nationals of Germany, Italy, Bulgaria, Finland, Thailand, Rumania, and Hungary, resident in Japan to make withdrawals from their bank accounts of 1500 yen per month for the head of a family and 500 yen per month for each dependent for living expenses. At that time the Emergency Financial Measures were not in effect but accounts of Axis Nationals were blocked at the end of the war. Accordingly this release was granted to provide living expenses. The apparent generosity in the amount was due to the fact that many Axis Nationals had been rounded up and placed in selected hotels where the cost of living was high. From 2 October 1945 to the enactment of the Emergency Financial Measures the releases were made in cash. After that time they were made in conformity with the regulations of the Emergency Financial Measures and treated in the same manner as any other foreign nationals. The releases permitted foreign nationals in free cash are (a) 300 yen per month per person for supplemental food allowance and (b) 100 yen per month per person for living expenses. In addition they may draw in free cash 500 yen per month if employed; up to 500 yen free cash for each servant employed for purpose of paying wages; 50 yen per month free cash for each dependent school child. By means of restricted payment foreign nationals can make withdrawals for payment of rent, utilities and necessary travel.
2. Subject memorandum has had no effect since the enactment of the Emergency Financial Measures. The decision to include releases to Axis nationals within the framework of the Emergency Financial Measures was taken by the Ministry of Finance on their own initiative with informal approval of Finance Division. There is a possibility that through collusion or ignorance, certain banks could permit withdrawals by Axis nationals under the terms of subject, memorandum in excess of the limits allowed by the Emergency Financial Measures and greater than those allowed other foreign nationals. There have been no reported instances of this but since the memo has no further useful purpose it should be rescinded both to avoid such a possibility and to definitely establish the fact that Axis nationals and other foreign nationals are to be given identical treatment in this connection. Axis nationals still in Japan can be considered as non-objectionable so there can be no criticism of the policy of according them treatment given to other foreign nationals.
3. This action does not affect the interests of Korea.
4. This is an administrative matter and surveillance by EIGHTH Army is not required.
5. No concurrences necessary.
W. K. L.