I hereby give My Sanction to the Law concerning the Special Measures about Government Contracts for which the concurrence of the Imperial Diet has been obtained and cause the same to be promulgated.
Signed:HIROHITO, Seal of the Emperor
This twenty-eighth day of the twelfth month of the twenty-first year of Showa (December 28, 1946)
Countersigned: Prime Minister YOSHIDA Shigeru
Minister of Justice KIMURA Tokutaro
Minister for Home Affairs OMUKA Seiichi
Minister of Finance ISHIBASHI Tanzan
Law concerning Special Measures about Government Contracts
Article 1. As regards the contracts with the Government as the party interested, which are provided for by the Imperial Ordinance (hereinafter to be called "specified contracts" ), and whose amount to be paid by the Government is not determined, in case an amount is designated by the Government as proper within the period as may be prescribed by Ordinance, the designated amount shall be considered to be the definite amount to be paid.
This shall apply also to any portion of the amount to be paid remaining undetermined.
The designation of the amount to be paid according to the provisions of the preceding paragraph shall be made in the form of a notice to the other party interested.The other party to the specified contract shall not be able to bring an action to the orhiuary court with respect to the amount to be paid by the Government for the specified contracts during the period provided for in paragraph 1. In case the designation is made according to the provisions of the preceding paragraph, the same shall also apply until the time when the notice provided for in Article 2, paragraph 3 is received.
Article 2. The other party who is not satisfied with the amount to be paid which is designated by the Government, in accordance with the provisions of the preceding paragraph, may apply to the Government for the revision of the amount to be paid, as provided for by Ordinance.
When there is an application in accordance with the provisions of the foregoing paragraph, the Government shall decide it by referring it to the deliberation of the Committee for Specified Contracts.
When the decision as mentioned in the foregoing paragraph has been made, the Government shall immediately notify the other party to that effect.
The provision pertaining to the Committee for Specified Contracts shall be determined by Imperial Ordinance.
Article 3. The other party who is not satisfied with the decision made by the Government, in accordance with the provisions of paragraph 2 of the preceding Article, may bring up an action into the ordinary law court.
Article 4. The other party to the specified contract shall, as provided for by Ordinance, provide itself with special books and documents, in which it shall make due entry about the amount of money concerning the performance of the specified contract, the receipt and delivery of things, as well as other matters which it is necessary to be mentioned.
Article 5. The Government may, when deemed necessary for the purpose of investigation in regard to the specified contract, cause the competent authorities to put pertinent questions to, or collect reports from, the other party to the contract or his sub-contractor or any other persons who do business with the said other party in connection with the said contract (including sub-contractors'subcontractors and other psrsons similar thereto), or to visit all these persons'places of business, places of operation or any other places to inspect books documents and other things kept there, or to put questions to witnesses.
The Government may, when deemed necessary, cause the competent officials of "To," "Do," "Fu" and "Ken" to attend to the affairs as prescribed in the preceding paragraph, as provided for by Ordinance.
Article 6. When falling under any of the following items, the other party to the specified contract, his sub-contractors and any other persons who transact business with the said other party to the said contract (including sub-contractors'sub-contractors and other persons similar thereto) shall be liable to penal servitude for one year or less or to a fine of ten thousand yen or less.
1. When failing to answer questions put as prescribed in the preceding Article or giving a false answer thereto.
2. When neglecting to file reports as prescribed in the preceding Article or making false reports.
3. When refusing, obstructing or evading inspections as prescribed in the preceding Article.
4. When producing books or documents as prescribed in the preceding Article with false entries made therein.
Article 8. Any representative of a juridical person, any agent, employee or other worker of a juridical person or an individual who commits an illegal action in violation of the provisions of items 1 or 4 of the preceding Article pertaining to the business of the juridical persons or individual concerned, the juridical person or individual concerned shall be subject to a fine prescribed in the said Article, in addition to the punishment imposed on the actual violator.
Supplementary Provisions:
The date of enforcement of the present Law shall be determined by Imperial Ordinance with respect to each of the provisions therein.
The provisions of Article 1 shall not apply to the specified contracts on which an action is pending in the law court at the time of the enforcement of the said provisions in respect to the amount to be paid by the Government.
The provisions of Article 5 shall not apply to the specified contracts existing at the time of enforcement of the said provisions.