I hereby give My sanction to the Special Supply Office Act (Tokubetsu Chotatsu Cho Ho) 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-sixth day of the fourth month of the twenty-second year of Showa (April 26, 1947)
Countersigned: Prime Minister and concurrently Minister for Foreign Affairs YOSHIDA Shigeru
Minister of Welfare KAWAI Yoshinari
Minister for Home Affairs UEHARA Etsujiro
Minister of Finance ISHIBASHI Tanzan
Minister of Commerce and Industry ISHII Mitsujiro
THE SPECIAL SUPPLY OFFICE ACT (Tokubetsu Chotatsu Cho Ho)
Chapter 1 General Provisions
Art.1. The Special Supply Office shall be under the supervision of the Prime Minister and have for its object, arranging for the building and repairing of building and utilities and the procurement and delivery of the materials or services procured for the Allied Forces and for the Imperial Japanese Government at the designation of the competent Minister in accordance with the basic policy for procurement formulated by the Director-General of the Economic Stabilization Board and with the schedules as will be set forth by the competent Minister.
The Special Supply Office shall be a juridical person.
Art.2. The Special-Supply Office shall have its main office established in Tokyo Metropolis.
The Special Supply Office may, with the approval of the competent Minister, establish branch offices where necessary.
Art.3. There shall be no authorized capital or working funds. Payment for all buildings, utilities, and goods (hereinafter called goods) or services shall be made from funds appropriated therefor by the Diet to the respective ministries using or responsible for payment for such goods or services.
Upon procurement of. any goods or services (building and repairing included;the same hereinafter) by the Special Supply Office for any agency for which it is authorized to procure, the Special Supply Office shall at the same time forward to the ministries responsible for payment for such goods or services a voucher showing the quantity, price and supplier of building, repairing, goods or services to whom payment shall be made. In the case of goods and services supplied to the Occupation Forces the voucher shall be clearly identifiable for occupation procurement and shall show the procurement demand by number.
Art.4. The Special Supply Office shall stipulate the following matters in its Articles of Incorporation:
4. Matters pertaining to the principal officials
5. Matters pertaining to the business and its execution
6. Matters pertaining to accounting
7. Matters of the public notices
The Articles of Incorporation may be revised with the approval of the competent Minister and the Director-General of the Economic Stabilization Board.
Art.5. The Special Supply Office shall have its registrations made as prescribed by the Imperial Ordinances.
The matters required to be registered as provided for in the preceding paragraph shall not be valid against a third person until after they are registered.
Art.6. The Special Supply Office shall be exempted from income tax, and corporation tax.
The metropolis, district, urban or rural prefecture, city, town, village and the like shall not levy local taxes on the business of the Special Supply Office. This, however, shall not apply if and when the Minister for Home Affairs and the Minister of Finance have given approval for such levy under special circumstances.
Art.7. The Special Supply Office shall be dissolved by order of the Director-General of the Economic Stabilization Board.
Matters pertaining to the dissolution of the Special Supply Office other than stipulated in the preceding paragraph shall be prescribed by an Imperial Ordinance.
Art.8. Any person other than the Special Supply Office shall not use the title "Special Supply Office" or similar title in his firm name.
Art.9. The provisions of Articles 44, 50, 54 and 57 of the Civil Code and Article 35, paragraph 1 of the Non-litigant Case Procedural Law shall apply correspondingly to the Special Supply Office.
Chapter 2 Officers and Personnel
Art.10. The Special Supply Office shall have as its principal officers one president, one vice-president, two or more directors and one or more auditors.
The President shall represent the Special Supply Office and supervise its business in accordance with Article 15.
The Vice-president shall, as prescribed in the Articles of Incorporation, represent the Special Supply Office, control the business of the Special Supply Offices, assisting the President, act for the President in case he cannot take his duties and perform the President's function in case the post becomes vacant.
The directors shall, as prescribed in the Articles of Incorporation, represent the Special Supply Office, control the business of the Special Supply Office, assisting the President and Vicepresident, act for the President and or the Vicepresident in case they cannot take their duties and perform their functions in case their positions become vacant.
The auditors shall inspect the business of the Special Supply Office.
Art.11. The President, Vice-president, Directors and Auditors shall be appointed by the Prime Minister.
Art.12. The President, Vice-president and Directors may, in accordance with the provisions of the Articles of Incorporation, assign staff to authorize them to perform all juridical or non-juridical conducts pertaining to the business of the main or subordinate offices of the Special Supply Office.
Art.13. The officers and personnel of the Special Supply Office shall not be permitted to be stockholders or employees or to have any beneficial interest in any company or enterprise engaged in contracts with the Office for procuring materials or services or engaged in building, repairing, production, fabrication, storage, sale, purchase, transportation services procured by Special Supply Office, or receive benefits in connection with such matters.
Art.14. All officers and personnel of the Special Supply Office shall be government officials and personnel.
The President shall be not less than Vice-Ministerial rank and the principal officials other than the President shall be ranked "first grade" or others ranked with "first grade" and the rest shall be either the "first, second or the third grade," other ranked with preceding ranks and the number of them shall be decided by the Prime Minister.
The officials and personnel of the Special Supply Office shall be governed by all laws and ordinances relating to the government officials. The special exception concerning the amount of salaries, allowances or other civil service rules, may be stipulated by the competent Minister with the approval of the Director-General of the Economic Stabilization Board.
Chapter 3 Business
Art.15. The Special Supply Office shall perform the following business in compliance with the basic policy for procurement formulated by the Director-General of the Economic Stabilization Board and with the schedules and instructions relating thereto as will be set forth by the competent Minister:
1. Arranging for building and repairing of building and utilities necessary for the Allied Forces or Japanese Government as where designated by the competent Minister.
2. Procurement of services and materials necessary for the Occupation Forces, and for the Government where designated by the competent Minister.
3. Such other business for the Occupation Forces as may be designated by the Director-General of the Economic Stabilization Board, if it is necessary to obtain them.
The Special Supply Office may not purchase any materials unless to fill specific procurement orders or to build stockpiles which have been specifically approved by the competent Minister in accordance. with the policies of the Director-General of the Economic Stabilization Board.
Art.16. The Special Supply Office shall at the commencement of its function establish the method of executing its business and submit the same to the Director-General of the Economic Stabilization Board for his approval.
The same step shall be taken when revising the said method. The Director-General of the Economic Stabilization Board shall consult the competent Minister and the Finance Minister when giving approval on matters prescribed in the preceding paragraph, but the final responsibility for the approval rests with the Director-General of the Economic Stabilization Board.
Art.17. The Special Supply Office shall, at the beginning of each fiscal term as defined in Art.18, prepare a business program and financial scheme for each term and submit the same to the Director-General of the Economic Stabilization Board for his approval. This shall also apply when a revision is to be made therein.
The Director-General of the Economic Stabilization Board shall consult the competent Minister and the Finance Minister when giving approval on matters prescribed in the preceding paragraph, but the final responsibility for the approval rests with the Director-General of the Economic Stabilization Board.
Chapter 4 Accounting
Art.18. The business year of the Special Supply Office shall be from April 1, each year to March 31, of the following year, and shall be divided into 1st and 2nd terms.
Art.19. The Special Supply Office shall prepare a statement of assets, a statement of affairs, and a statement of profit and loss account for each term and after the expiration of the terms submit them to the Director-General of the Economic Stabilization Board within two months for his approval.
The Director-General of the Economic Stabilization Board shall consult the competent Minister and the Minister of Finance when giving the approval as prescribed in the preceding paragraph, within 15 days of the receipt of the documents referred to in the preceding paragraph, but the final responsibility for the approval shall rest with the Director-General of the Economic Stabilization Board.
The Special Supply Office shall make public notice of the statement of assets, the statement of affairs and the statement of profit and loss account and keep them together with the Articles of Incorporation at the main and branch offices immediately when the approval is given by the Director-General of the Economic Stabilization Board as prescribed in the first paragraph.
The statement of assets, the statement of affairs and the statement of profit and loss account shall be inspected and approved by the Board of Audit.
The Special Supply Office shall, when it has obtained the approval of the Director-General of the Economic Stabilization Board, pay to the National Treasury entire cash as determined by stipulations of the Ordinance within two months from the end of each term.
All books, documents and records of the Special Supply Office shall be clearly written and ready for inspection by the Board of Audit and the Economic Stabilization Board and the competent government office.
The Board of Audit shall continually carry out precise inspection of them.
Chapter 5 Supervision
Art.20. The Director-General of the Economic Stabilization Board will direct the Special Supply Office in regard to the basic policy for procurement.
The Director-General of the Economic Stabilization Board may, when deemed necessary to secure the procurement of materials or services for the Allied Forces and for the Imperial Japanese Government designated by the competent Minister, issue necessary orders to the Special Supply Office.
The competent Minister may, when deemed necessary to secure the procurement of materials or services for the Allied Forces and for the Imperial Japanese Government, issue necessary orders to the Special Supply Office in accordance with the basic policy for procurement of materials or services formulated by the Director-General of the Economic Stabilization Board.
The competent Minister or the Director-General of the Economic Stabilization Board may, when deemed necessary, have the Special Supply Office submit a report or have an official concerned inspect a necessary place to examine the state of business, books, documents or any other necessary matters.
In case the official concerned sent for inspection and examination in accordance with the provisions of the preceding paragraph, he shall carry an identification certificate to prove his post as prescribed by orders.
Art.21. The Special Supply Office shall prepare rules or remuneration for its officers and personnel when deemed necessary to pay special payment to them, and submit them to the Director-General of the Economic Stabilization Board for his approval. This shall apply where a change is to be made thereto.
The Director-General of the Economic Stabilization Board shall consult the competent Minister and the Minister of Finance when he approves by the preceding paragraph. In this case, however, the final responsibility for approval shall lie with the Director-General of the Economic Stabilization Board.
Art.22. The competent Minister may remove an officer from the Special Supply Office in the case he violates laws and ordinances, Articles of Incorporation or orders issued on the basis of this Law.
The Director-General of the Economic Stabilization Board may also remove an officer of the Special Supply Office if he considers that he is not suitable or properly carrying out his duties in connection with the objects and business of the Special Supply Office.
Chapter 6 Penalties
Art.23. The officers and personnel of the Office shall be liable to penal servitude not exceeding five years and or a fine not exceeding \50,000 in the following cases:
1. When performing business which is not prescribed in Art.15.
2. When violating supervisory orders of the Director-General of the Economic Stabilization Board or the competent Minister, prescribed in Art.20, paragraph 2 or 3.
3. When performing business in violation of Art.13.
Art.24. Any persons who fail to make a report as required by this Law or submit a false report or refuse, interfere or evade inspections shall be liable to a penal servitude not exceeding 1 year and or a fine not exceeding \10,000.
Art.25. In case a representative of a juridical person or an agent, employee or any other persons other than the Special Supply Office engaged by a juridical person or a person violates this Act as prescribed in Art.23 or the preceding Article in connection with the business of such juridical person or the person not only the offender shall be subject to penalties but also the juridical person shall be liable to penalties as referred to in the preceding two Articles.
Art.26. Those who use the name "Special Supply Office" or the like in violation of Art.8 shall be liable to a fine not exceeding \10,000.
Supplementary Provisions:
Art.27. The date of enforcement of this Law shall be set forth by an Imperial Ordinance.
Art.28. The competent Minister shall appoint an Organizing Committee to take charge of the works relative to the establishment of the Special Supply Office.
Art.29. The Organizing Committee shall prepare the Articles of Incorporation and obtain the approval of the competent Minister and Director-General of the Economic Stabilization Board.
Art.30. Upon approval of the preceding Article, the Organizing Committee shall hand over without delay the business to the President of the Special Supply Office.
When the President has taken over the work referred to in the preceding paragraph, all of the President, Vice-President, Directors and Auditors shall effect the registration of the establishment without delay.
The Special Supply Office shall come into being upon the registration of the establishment.
Art.31. A part of the Registration-Tax Law is amended as follows:
In Art.19, Section 7, the "Special Supply Office" is added after "Kodans stipulated by laws," and "Special Supply Office Act" is added after "Laws relative to Kodans (Public Corporations)."
Art.32. A part of the Stamp Tax Law is amended as follows:
The following sub-section is added to Art.5, Section 6-6.
Section 6-6-2 Certifying documents and books relative to business of the Special Supply Office.