I hereby promulgate National Property Law. Signed:HIROHITO, Seal of the Emperor This thirtieth day of the sixth month of the twenty-third year of Showa (June 30, 1948) Prime Minister ASHIDA Hitoshi Law No.73 National Property Law Contents Chapter 1. General Provisions Chapter 2. Agencies for Administration and Disposition Chapter 3. Administration and Disposition Section 1. General Regulations Section 2. Administrative Property Section 3. Common Property Chapter 4. Ledgers, Reports and Statements Supplementary Provisions National Property Law Chapter I General Provisions

(Purpose of this Law) Article 1. The acquirement, maintenance, preservation and utilization (hereinafter to be referred to as administration) and disposition of national property shall be handled in accordance with the provisions of this Law, except when specifically prescribed by other laws.

(Scope of national property) Article 2. National property in this Law shall mean property that has come to fall under national ownership at the expense of the National Government, or property that has come to fall under national ownership by virtue of provisions of laws and orders, or by contribution, as enumerated below: 1. Real property; 2. Ships, buoys, pontoons and floating docks; 3. Appendages of real property or movable property prescribed in the preceding numbers; 4. Machinery and important tools which are used in Government establishments, workshops, schools, hospitals, research institutes and other similar institutions; 5. Surface rights, servitudes, mining rights, alluvial mining rights and other similar rights; 6. Patents rights, copyrights, trade-mark rights, utility model patent rights and other similar rights; 7. Stocks, debentures, Local Government bonds, beneficiary certificates of investment trusts, rights relating to investment, and securities issued by foreign countries or foreign jurisdical persons the nature of which is the same as stocks, debentures, Local Government bonds or other similar securities. However, those that are held temporarily by the National Government for operation of its fund or reserve fund and for similar purposes shall be excluded. Machinery and important tools prescribed in item 4 of the preceding paragraph shall be assumed as national property even when the Government establishments, workshops, schools, hospitals, research institutes and other similar institutions, concerned are abolished. Debentures prescribed in paragraph 1 item 7 shall include bonds issued by juridical persons as provided for by specific laws and orders, and debentures registered in accordance with the provisions of the Law for the Registration of Debentures etc.(Law No.11, 1942).

(Classification and types of national property) Article 3. National property shall be classified into administrative property and common property. Administrative property shall consist of the following types of property; 1. Official property: Property that is used or that has been decided to be used by the National Government for National Government commitment, undertaking or for residence of its personnel; 2. Public welfare property: Public park or playground that is used or that has been decided to be used directly by the National Government for the benefit of the public, and monument or national treasure that is preserved by the National Government for the benefit of the public; 3. Imperial Household property: Property that is assigned for the personal use of the Imperial family by the National Government; 4. Public enterprise property: Property that is used or that has been decided to be used by the National Government for National Government enterprise or for residence of personnel engaged in such enterprise. Common property shall be all national property outside of administrative property. Designation of National Government enterprise prescribed in paragraph 2 item 4 shall be made by Cabinet Order.

(Definition of general control, change of jurisdiction and change of administrative control) Article 4. General control of national property in this Law shall mean the adjustment of institution concerning national property, co-ordination of the business of administration and disposition, clarification of the increase and decrease, the existing amount and the current status of national property, and other adjustments necessary for administration and disposition, to ensure adequate administration and disposition of national property. Change of jurisdiction in this Law shall mean the change of jurisdiction of national property among the Speaker of the House of Representatives, the President of the House of Councillors, the Chief Justice of the Supreme Court, the Director-General of the Board of Audit, the Prime Minister, the Attorney General, and each Minister (hereinafter to be referred to as Chief of Ministry or Board). Change of administrative control of national property in this Law shall mean the transfer of national property under administrative control of one Division, Bureau etc. to that of another within the same jurisdiction when there are two or more such Divisions, Bureaus etc. in one jurisdiction.

Chapter II Agencies for Administration and Disposition

(Agency for administration of administrative property) Aaticle 5. The Chief of Ministry or Board shall administer the administrative property that is under his jurisdiction.

(Agency for administration and disposition of common property) Article 6. Common property shall be administered and disposed of by the Minister of Finance.

(Agency for general control of national property) Article 7. The Minister of Finance shall be responsible for the general control of national property.

(Turning over of national property) Article 8. When the utilization of administrative property is abolished, the Chief of Ministry or Board shall turn it over to the Minister of Finance;provided, however, that property which belongs to Special Accounts prescribed by Cabinet Order and property prescribed by Cabinet Order as unsuitable to be turned over, be excluded. As regards common property provided for in the proviso to the preceding paragraph, the Chief of Ministry or Board who has jurisdiction over the same shall administer and dispose of it, notwithstanding the provisions of Article 6.

(Delegation of business pertaining to national property) Article 9. The Chief of Ministry or Board may let the chief of subordinate Division, Bureau, etc. handle a part of the business pertaining to national property under his jurisdiction. The National Government may let the Special Procurement Board or its officers and personnel or local public bodies or their personnel handle the business pertaining to national property.

Chapter III Administration and Disposition

Section 1 General Regulations

General control of administration and disposition) Article 10. The Minister of Finance, if he considers it necessary, may collect from the Chief of Ministry or Board information on reports on the condition of national property under the jurisdiction of the latter, carry out spot inspection, or, subject to Cabinet decision, request the change or abolition of utilization, or change of jurisdiction be made, or other necessary measures taken.

Article 11. The Minister of Finance shall be responsible for keeping a record of the current status of all national property under the jurisdiction of the Chief of Ministry or Board to have its status clear at all times.

Article 12. When a Chief of Ministry or Board wishes to have national property transferred to his jurisdiction, he shall consult with the Chief of Ministry or Board who currently has jurisdiction over the property, and the Minister of Finance.

Article 13. When property is to be acquired for the purpose of making it public welfare property or Imperial Household property, or when national property other than public welfare property and Imperial household property is to be changed to such property, it shall be done with the decision of the Diet. The same shall apply to cases where utilization of public welfare property or Imperial household property is to be abolished.

Article 14. In the following cases, the Chief of Ministry or Board who has jurisdiction over the national property concerned shall consult with the Minister of Finance: 1. When intending to acquire land or building in order to make it official property or public enterprise property; 2. When making common property official property or public enterprise property; 3. When making official property public enterprise property, or public enterprise property official property; 4. When the utilization of land or building which is official property or public enterprise property is to be changed; 5. When intending to move and rebuild on another site building with is official property or public enterprise property; 6. When change of administrative control is intended for land or building which is official property or public enterprise property between accounts belonging to different jurisdictions. The provisions of items 1, 4 and 5 of the preceding paragraph shall not apply to property that belongs to Special Accounts prescribed by Cabinet Order.

(Change of jurisdiction etc. between accounts belonging to different jurisdictions) Article 15. When change of jurisdiction or change of administrative control of official property, public enterprise property or common property is to be effected between accounts belonging to different jurisdictions, or when such property is to be used by an accounts belonging to a different jurisdiction, there shall be an adjustment between the accounts. However, when it is to be done for the purpose of making it property which the National Government directly employs for the benefit of the public such as road, river, waterway, harbor etc. and which is not public welfare property (hereinafter to be referred to as public facilities), or for the purpose of making it public welfare property, this shall not apply.

(Restriction on acts of personnel) Article 16. The personnel who are engaged in business relating to national property shall not acquire the national property under their charge, or exchange the same for their own property. Acts in violation of the preceding paragraph shall be invalid.

(National Property Co-ordination and Investigation Committee) Article 17. The National Properry Co-ordination and Investigation Committee shall be established in the Ministry of Finance to investigate and deliberate upon, at the consultation of the Minister of Finance, matters pertaining to change or abolition of utilization, change of jurisdiction or other necessary measures that the Minister of Finance may request in accordance with the provisions of Article 10, and important matters concerning which the Minister of Finance may be consulted with in accordance with the provisions of Article 14. The Committee shall consist of a President and Commissioners not exceeding twenty in number. The Minister of Finance shall be the President. Commmissioners shall be appointed by the Cabinet from among the personnel of the House of Representatives, the House of Councillors, the Supreme Court, the Board of Audit, the Cabinet, the Attorney General's Office and each Ministry (hereinafter to be referred to as each Ministry or Board). Matters necessary for the Committee not provided for in the preceding paragraphs shall be prescribed by Cabinet Order.

Section 2 Administrative Property

(Restriction on disposition, etc.) Article 18. Administrative property shall not be leased, exchanged, sold, transferred without consideration, made object of investment, or private right created on it, except in cases where it is to be used or proceeds are to be obtained from it in so far as it does not interfere with its utilization or purpose.

(Application mutatis mutandis) Article 19. When administrative property shall be used or proceeds obtained from it in accordance with the provision of the preceding Article, provisions of Articles 21 to 25 shall be applied mutatis mutandis.

Section 3 Common Property

(Disposition etc.) Article 20. Common property may be leased, exchanged, sold, transferred without consideration or private right created on it, in accordance with the provisions of Article 21 to Article 31 inclusive below. Common property may be made the object of investment only when specifically provided for by law.

(Term of lease) Article 21. Lease of common property shall not exceed the following periods of time: 1. When land or fixture of land other than building is to be leased for the purpose of planting trees:60 years; 2. When land or fixture of land other than building is to be leased for purposes other than that mentioned in the preceding number:30 years; 3. When building and other items are to be leased:10 years. The period of lease specified in the preceding paragraph may be renewed, in which case it shall not exceed the periods of time specified in the same paragraph counting from the date of renewal.

(Lease free of charge) Article 22. Common property may be leased to local public bodies, irrigation associations, the Hokkaido Public Works Association (hereinafter to be referred to as public bodies) free of charge in the undermnentioned cases: 1. When the property is to be used by public bodies for verdant area, park, pond, crematorium, graveyard or rubbish-disposition place; 2. When the property is to be used by public bodies for the accommodation of the destitute who need relief; Lease of national property free of charge previded for in the preceding paragraph shall not be allowed in case the management by public bodies of the facilities concerned aims at making profit or accompanies profit. When, after common property has been leased free of charge in accordance with the provision of paragraph 1, the Chief of Ministry or Board considers its administration by the public bodies to be inadequate, or when its management comes to fall under the provisions of the preceding paragraph, the Chief of Ministry or Board shall cancel the contract without delay.

(Rent for Lease) Article 23. The rent for lease of common property shall be paid at a fixed time annually. However, rent for several years may be paid in advance.

(Cancellation of contract for lease) Article 24. When, during the period of lease of common property, it becomes desirable for the National Grvernment or public bodies to employ the same for public or official use or for the use of National Government enterprise or non-profit undertaking the Chief of Ministry or Board who has jurisdiction over the property may cancel the contract. When the contract has been cancelled in accordance with the provision of the preceding paragraph, the lessee may request compensation for the damages caused thereby to the Chief of Ministry or Board who has jurisdiction over the property.

Article 25. When request for compensation has been made in accordance with the provision of paragraph 2 of the preceding Article, the Chief of Ministry or Board who has jurisdiction over the property concerned may submit the request to the Board of Audit for examination. When the Chief of Ministry or Board has been notified by the Board of Audit of the findings of the examination provided for in the preceding paragraph, he must take due measures based on the decision notified.

(Application mutatis mutandis) Article 26. The provisions of the five preceding Articles shall be applied mutatis mutandis to cases where common property is used or proceeds obtained from it in forms other than lease.

(Exchange) Article 27. When it becomes necessary for employment by the National Government public bodies for public use, official use, for the use of National Government enterprise or non-profit undertaking, land, fixture of land, or solid building which is common property may be exchanged for other land, fixture of land or solid building respectively, provided that the difference of values does not exceed one fourth of the price of the higher. In the exchange prescribed in the preceding paragraph, when prices are not equal, the difference shall be made up with money. When solid building is to be made the object of exchange in accordance with the provision of paragraph 1, the Chief of Ministry or Board shall notify the Board of Audit in advance.

(Transfer without consideration) Article 28. Common property may be transferred without consideration in the following cases: 1. When, upon abolition of the utilization of property which was being employed for use as road, river, waterway, harbor, embankment, trench of pond and for which public bodies were paying the cost of maintenance and preservation, the common property that comes to exist thereby is to be transferred without consideration to the public bodies concerned, within the limit of the cost incurred; 2. When, upon abolition of the utilization of property which was being employed for use as road, river, waterway, harbor, embankment, trench or pond, cansed by provision by public bodies or private persons or corporations of new facilities to take its place, the common property that comes to exist thereby is to be transferred without consideration to the public bodies or the private persons or corporations concerned, their heirs or other general successors, within the limit of the cost incurred; 3. When, upon abolition of the utilization of property which had been contributed and which was being employed for use as road, river, waterway, harbor, embankment, trench or pond, the common property that comes to exist thereby is to be transferred to the contributors, their heirs or other general successors. However, this shall not apply to cases where twenty years have elapsed since the time of the contribution of the property, unless special agreement had been made at the time of the contribution; 4. When common property employed by public bodies for public use as crematorium, graveyard or rubbish-disposition place, is to be transferred without consideration to the public bodies, provided, however that the management of the facilities concerned by the public bodies neither aims at moking profit nor accompanies profit.

(Sale with utilization specified) Article 29. When common property is to be sold with a view to its employment for a definite purpose the Chief of Ministry or Board who has jurisdiction over the property shall indicate to the buyer the purpose, the period of time during which it is to be used for the purpose, and the time limit within which the use for the purpose is to begin.

Article 30. In case, when sale of common property has been made with the purpose, the period of time during which it is to be used for the purpose, and the time-limit within which the use for the purpose is to begin, indicated, in accordance with the provision of the preceding Article, the said propeaty is not used for the indicated purpose within the indicated time-limit, or the use is abolished within the indicated period of time after the use of the property for the purpose had begun, the Chief of Ministry or Board who has jurisdiction over the property may cancel the contract. In case, upon cancellation of contract in accordance with the provisions of the preceding paragraph, claim for damages has been made, the Chief of Ministry or Board shall consult with the Minister of Finance concerning the amount of damages.

(Payment of sales price etc.) Article 31. The sales price or the margin of exchange for common property shall be paid prior to the delivery of the property. However, when the transferee of the property is a public body, or a body undertaking educational or social work, and the Chief of Ministry or Board considers it difficult for such body to pay the sales price or the margin of exchange in a single payment, a special agreement for deferred payment, not exceeding five years, secured by reliable mortgage, and with interest, may be concluded. When the Chief of Ministry of Board intends to conclude a special agreement for deferred payment provided for in the proviso to the preceding paragraph, he shall consult with the Minister of Finance concerning the period of deferment, mortgage and rate of interest. When, after a special agreement for deferred payment has been concluded in accordance with the proviso to paragraph 1, either of the following cases arises, the Chief of Ministry or Board shall cancel the agreement without delay: 1. When administration of the property by the transferee is considered inadequate; 2. When the total of annual payment of and interest on the sales price or the margin of exchange deferred is smaller than the estimated rental value of the property for that year.

Chapter IV. Ledgers, Reports and Statements

(Ledgers) Article 32. Each Ministry or Board shall keep ledgers according to the classification and types of national property as prescribed in Article 3. However, when a chief of Division, Bureau etc. handles a part of the business pertaining to national property, each Division, Bureau, etc. shall keep its own ledgers, and the Ministry or Board shall summarized ledgers. When there is a change in the status of national property under his jurisdiction or administrative control by reason of acquisition, change of jurisdiction, disposition or other causes, the Chief of Ministry or Board or the chief of Division, Bureau etc. shall enter the change in his ledger without delay.

(Report and consolidated statement of increase, decrease and existing amount) Article 33. The Chief of Ministry or Board shall prepare a report of increase and decrease in national property under his jurisdiction during each fiscal year and of the existing amount of such property as of the end of each fiscal year, and submit it to the Minister of Finance by July 31 of the next fiscal year. The Minister of Finance shall prepare a consolidated statement of increase and decrease in national property and of the existing amount of such property, from the reports of increase and decrease in national property and of the existing amount of such property submitted to him in accordance with the provision of the preceding paragraph. The Cabinet shall send the consolidated statement of increase and decrease in national property and of the existing amount of such property as provided for in the preceding paragraph, to the Board of Audit for examination, by October 30 of the next fiscal year, together with the reports of increase and decrease in national property and of the existing amount of national property prescribed in paragraph 1.

Article 34. The Cabinet shall make a report to the ordinary session, as a rule, of the Diet opening in the next fiscal year on the consolidated statement of increase and decrease in national property and of the existing amount of such property as examined by the Board of Audit. The consolidated statement of increase and decrease in national property and of the existing amount of such property as prescribed in the preceding paragraph shall be accompanied by the examination report from the Board of Audit and the report of increase and decrease in national property and of the existing amount of such property from each Ministry of Board.

(Reports and consolidated statements on estimated amounts) Article 35. The Chief of Ministry or Board shall prepare each fiscal year reports on the estimated amounts of national property as of the end of that fiscal year and as of the end of the next fiscal year, and submit them to the Minister of Finance by September 30 of that fiscal year. The Minister of Finance shall prepare consolidated statements on the estimated amounts of national property as of the end of that fiscal year and as of the end of the next fiscal year, from the reports on the estimated amounts of national property submitted to him in accordance with the provisions of the preceding paragraph.

(Report and consolidated statement on lease free of charge) Article 36. The Chief of Ministry or Board shall prepare, at the end of each fiscal year, a report on the lease of national property free of charge as of the end of each fiscal year, for national property leased free of charge in accordance with the provision of Article 22 paragraph 1 (including application mutatis mutandis by virtue of Articles 18 and 26), and submit it to the Minister of Finance by July 31 of the next fiscal year. The Minister of Finance shall prepare a consolidated statement on the lease of national property free of charge, from the reports on the lease of national property free of charge submitted to him in accordance with the provision of the preceding paragraph. The Cabinet shall send the consolidated statement on the lease of national property free of charge prescribed in the preceding paragraph to the Board of Audit for examination, by October 31 of the next fiscal year, together with the report on the lease of national property free of charge from each Ministry or Board prescribed in paragraph 1.

Article 37. The Cabinet shall make a report to the ordinary session, as a rule, of the Diet opening in the next fiscal year, on the consolidated statement on the lease of national property free of charge as examined by the Board of Audit. The consolidated statement on the lease of national property free of charge as prescribed in the preceding paragraph shall be accompanied by the examination report from the Board of Audit and the report on the lease of national property free of charge from each Ministry of Board.

(Exemption) Article 33. Provisions of this Chapter shall not apply to public facilities.

Supplementary Provisions:

Article 39. This Law shall come into force as from July 1, 1948. However, the provisions of Articles 33, 34 and 36 to 38 inclusive shall be applicable from fiscal year 1947-48, and the provision of Article 13 shall come into force as from the date on which Diet decision shall be made in accordance with the provision of Article 45.

Article 40. National property received as payment in kind in accordance with the provisions of the Capital Levy Law (Law No.52, 1946) or the War Indemnity Special Measures Law (Law No.38, 1946) shall neither be leased free of charge nor be transferred without consideration, as provided for in Article 22 (including application mutatis mutandis by virtue of Article 26) or Article 28. However, this shall not apply to property that has been removed from the Special Account of Receipts from Capital Levy etc. to other accounts by Law.

Article 41. In the reports to be prepared in accordance with the provisions of Article 33 paragraph 1, Article 35 paragraph 1 and Article 36 paragraph 1, reports for Korea, Formosa, Saghalien, ex-Japanese Mandate Islands, Kwantung Province and foreign countries may be omitted.

Article 42. Exchange, sale, transfer without consideration and investment of national property, and lease, creation of private right and other acts allowing use of or obtaining of proceeds from national property, which were effected prior to the enforcement of this Law, shall be regarded as effected according to this Law. Acts mentioned in the preceding paragraph that conflict with the provisions of this Law shall become invalid on the date of enforcement of this Law to the extent they are in conflict.

Article 43. Machinery and important tools that had been under the jurisdiction of the former War Ministry, Navy Ministry or Munitions Ministry, shall be regarded as national property provided for in Article 2, except those that fall under the provisions of Article 2 paragraph 2. However, this shall not apply to those which were transferred to the Chief of Ministry or Board as articles prior to the enforcement of this Law, and those which neither fall under Article 2 paragraph 1 item 4 nor under paragraph 2 of the same Article of this Law subsequent to change of jurisdiction (including change of administration as provided for in the national Property Law (Law No.43, 1921) prior to amendment) to the Chief of Ministry or Board (excluding Minister of Finance).

Article 44. The Chief of Ministry or Board shall classify all national property under his jurisdiction in a (c) rdance with the classification and types of national property set forth in Article 3 by September 30, 1948 and submit the classified list to the Minister of Finance. The Minister of Finance shall prepare a consolidated classified list from the lists submitted to him in accordance with the preceding paragraph, and refer the same to the National Property Co-ordination and Investigation Committee for consultation.

Article 45. The Cabinet shall submit the consolidated classified list provided for in the preceding Article to the Diet for its decision.

Article 46. All the provisions of other laws and orders which are inconsistent with the provisions of this Law at the time of enforcement of this law, shall be invalid as from the date of the enforcement of this law.

Article 47. The State Property Law (Law No.43, 1921) shall be abolished.

Article 48. The National Forest and Estate Law (Law No.85, 1899) shall be partially amended as follows:

Article 2 Deleted;

Article 3 paragraph 2 shall be deleted;

Articles 4 to 7 inclusive Deleted;

Article 9 Deleted;

Articles 12 to 14 inclusive Deleted;

Article 16 Deleted;

Articles 24 and 25 Deleted.

Article 49. The Imperial House Economy Law (Law No.4, January 10, 1947) shall be partly amended as follows: In Article 1 paragraph 1, "State property which is assigned, or which has been determined to be assigned, to the official use of the Imperial House (called the Imperial House Use Property hereinafter) shall be treated as government use property under the State Property Law, and matters pertaining to it..." shall read "Matters pertaining to Imperial House Use Property..." In Article 1 paragraph 2 "... is assigned, or is to be determined to be assigned to the official use of the Imperial House," shall read "... is to be assigned for the private use of the Imperial House,"

Prime Minister ASHIDA Hitoshi Minister of Finance KITAMURA Tokutaro