I hereby promulgate the Japan Monopoly Public Corporation Law. Signed:HIROHITO, Seal of the Emperor This twentieth day of the twelfth month of the twenty-third year of Showa (December 20, 1948) Prime Minister YOSHIDA Shigeru Law No.255 The Japan Monopoly Public Corporation Law Contents: Chapter I. General Provisions 1-8 Chapter II. Monopoly Enterprises Council 9 Chapter III. Officers and Employees 10-26 Chapter IV. Business 27&28 Chapter V. Accounting 29-43 Chapter VI. Supervision 44-46 Chapter VII. Penal Provisions 47&48 Chapter VIII. Miscellaneous Provisions 49-56 Supplementary Provisions Chapter I. General Provisions

(Objective) Article 1. The Japan Monopoly Public Corporation shall have, as its objective, the sound and efficient operation of the enterprises which are monopolies of the State at the present time in accordance with Tobacco Monopoly Law (Law No.14 of 1904), the Salt Monopoly Law (Law No.11 of 1905), and the Crude Camphor and Camphor Oil Monopoly Law (Law No.5 of 1903).

(Character as a Juridical Person) Article 2. The Japan Monopoly Public Corporation (hereinafter to be referred to as the Corporation) shall be a juridical person of public law. It shall not be considered to be a commercial company within the meaning of Article 35 of the Civil Code (Law No.89 of 1890) or of the provisions of the Commercial Code (Law No.48 of 1899) concerning commercial companies and associations.

(Office) Article 3. The Corporation shall have its head office in Tokyo-to. 2 The Corporation may open its branch offices in such places as are necessary for its business purpose with the approval of the Minister of Finance.

(Capital) Article 4. The capital of the Corporation shall be the assets turned over by the Government on the effective date of this Law. These assets shall be those properties and undertakings now owned and operated under the Monopoly Bureau Special Account which relates to or are used for the business purposes stated in Article 27 of this Law, as of March 31, 1949.

(Registration) Article 5. The Corporation shall be registered as prescribed by Cabinet Order. 2 Matters required to be registered in accordance with the provisions of the preceding paragraph shall have no binding force on a third party prior to registration.

(Tax Exemption) Article 6. The Corporation shall be free from the income and corporate taxes. 2 To, Do, Fu, Ken, cities, towns, villages and the like shall not levy local taxes on the Corporation with the exception of the mine product tax, admission tax, liquor consumption tax, electricity and gas tax, timber transactions tax, entertainment tax, surtaxes of the above taxes and the entertainment tax share.

(Restriction on the use of corporation name) Article 7. Persons other than the Corporation shall not be allowed to use the name of the Japan Monopoly Public Corporation or any other similar name.

(Application of provisions concerning juridical persons) Article 8. The provisions of Articles 44, 50 and 54 of the Civil Code shall be applicable with necessary modifications to the Corporation.

Chapter II. Monopoly Enterprises Council

(Monopoly Enterprises Council) Article 9. A Monopoly Enterprises Council shall be established in the Ministry of Finance. 2 The Monopoly Enterprises Council (hereinafter to be referred to as the Council) may offer advice at the request of, or state its views to, the Minister of Finance, on matters pertaining to the business operation of the Corporation, in addition to the matters prescribed by paragraph 1 of Article 12 and paragraph 2 of Article 45. 3 The Council shall be composed of a chairman and six conncillors. 4 The chairman and councillors shall be appointed by the Minister of Finance from among those who are learned or experienced, growers of leaf tobacco and employees of the Corporation. 5 The chairman and councillors shall serve three years;provided that at the time of creation of the Council, each two councillors shall be given the tenure of 1, 2 and 3 years respectively. In case of vacancy prior to the expiration of the tenure of the chairman or a councillor, his successor shall serve for the remaining term. 6 The chairman and councillors may be reappointed. 7 The chairman and councillors shall not be paid for service;provided that they may be paid a reasonable per diem allowances equivalent to the time spent in order to attend meetings of the Council or spent in special service to the Council, and travelling expenses to and from such meetings or when assigned to such service. 8. In addition to the provisions of the preceding paragraphs, administrative matters necessary for the operation of the Council may be prescribed by a Cabinet Order.

Chapter III. Officers and Employees

(Officers) Article 10. The Corporation shall have, as its officers, a President, a Vice-President, five or more Directors and two or more Auditors.

(Duties of Officers) Article 11. The President shall represent the Corporation and shall preside over its business. 2 The Vice-President shall represent the Corporation when directed by the President, assist the President in the management of the corporate business, act on behalf of the President in case of the latter's disability, and act as President in case of a vacancy in the office of the President. 3 Directors shall represent the Corporation when directed by the President, assist the resident and the Vice-President in the management of its business, act on behalf of the President or the Vice-President in case of their disability, and act as President or Vice-President in case of a vacancy in these positions. 4 Auditors shall audit the business of the Corporation.

(Appointment of Officers) Article 12. The President and the Auditors shall be appointed by the Minister of Finance on the recommendation of the Monopoly Enterprises Council. 2 The Vice-President and the Directors shall be appointed by the President with the approval of the Minister of Finance.

(Terms of Office for Officers) Article 13. The term of office for the President, the Vice-President and the Directors shall be four years, and that for Auditors shall be three years; provided that, for the first appointment of Directors and Auditors half of them shall be respectively appointed for two years.

(Restriction on Representing Right) Article 14. In any case where the interest of the President, Vice-President or any Director is against that of the Corporation, such officer shall not have the right to represent the Corporation. In this case, Auditors shall represent the Corporation.

(Appointment of Agents) Article 15. The President, the Vice-President and Directors may appoint agents will full power to act both in and out of court, in connection with the business of branch offices, from among the personnel of the Corporation.

(Restriction on Holding of Concurrent Offices by Officers) Article 16. The officers of the Corporation shall not hold posts as officers of profit-making organizations or engage in profit-making enterprises. 2 The officers of the Corporation shall not concurrently be members of the Diet or of the assembly of any local public bodies.

(Duty to keep secrecy) Article 17. The officers and employees of the Corporation and those who have been its officers or employees shall not divulge secrets that came to their knowledge in the course of their duties, or abuse such secrets.

(Status of Officers and Employees) Article 18. Officers and employees of the Corporation shall be regarded as personnel engaged in public service in accordance with laws and ordinances. 2 The National Public Service Law (Law No.120 of 1947) shall not apply to officers and employees of the Corporation.

(Scope and Qualifications of Employees) Article 19. Employees of the Corporation shall be as defined in paragraph 2 of Article 2 of the Public Corporation Labor Relations Law (Law No.257 of 1948).

(Standards for Appointment and Dismissal) Article 20. Appointment of dismissal of employees of the Corporation shall be made on the basis of the results of examinations and the merit of their performance or other demonstrated abilities.

(Pay) Article 21. The salary and wages of employees of the Corporation shall be paid in proportion to the nature of their duties and their responsibilities. 2 The salary and wages of employees of the Corporation shall be fixed in consideration of their living cost, payment for national public service, and workers in private enterprises and other factors.

(Demotion and Dismissal) Article 22. Except in cases where any employee of the Corporation falls under the provisions of any of the following items, any employee shall not be demoted or dismissed against his will: (1) In cases of poor showing in the performance of his duties; (2) In cases where physical or mental trouble hamper execution of duties, or deprive him of the qualifications necessary therefor; (3) Any other case where necessary qualifications are wanting for his duties; (4) In the case of reduction of business volume or other unavoidable circumstances in the Corporation.

(Temporary Retirement) Article 23. Except in cases where any employee of the Corporation falls under the provision of any of the following items, any employee shall not be made to temporarily retire from office against his will: (1) In cases where any metal or physical trouble of the employee claims his rest for a long term; (2) In the case of indictment on any criminal charge. 2 The term of temporary retirement, as provided for in item 1 of the preceding paragraph, shall be full one year. In case the said trouble ceases to exist during the term of temporary retirement, the employee in question shall be reinstated without delay;and in case the term of temporary retirement expires during retirement he shall be dismissed. 3 The term of temporary retirement, as prescribed in item 2 of paragraph 1 shall correspond to the period during which the said case is handled by the court concerned. 4 Any employee who is temporarily retired shall not be engaged in business, though he shall hold the status of an employee. Any employee who is temporarily retired shall receive one-third of his salary during the term of his temporary retirement.

(Discipline) Article 24. In cases where any employee of the Corporation falls under the previsions of any of the following items, the President may, as disciplinary action, dismiss, suspend from office, reduce the pay of, or reprimand the said employee: (1) When the said employee has acted in violation of any provision of this Law or any operational regulations laid down by the Corporation; (2) When the said employee has acted contrary to the duties of his position or has neglected his duties. 2 The term of suspension from office shall range from one month to one year. 3 Any suspended employee shall not be engaged in his duties, through he shall hold the status of an employee. Any suspended employee shall receive onethird of his pay during the term of suspension. 4 In case of reduction in pay, less than one tenth of his pay shall be deducted for the term ranging from one month to one year.

(Basic Standard for Performance of Duty) Article 25. Any employee of the Corporation shall, in the execution of his duties, conform to laws and statutes, and operational regulations laid down by the Corporation. 2 Any employee of the Corporation shall exert his utmost in the execution of his duties, except those who exclusively engage in the business of the employees'union in accordance with the provision of Article 7 of the Public Corporation Labor Relations Law.

(Application of Labor Relations Law) Article 26. With regard to the labor relation of employees of the Corporation, the provisions of the Public Corporation Labor Relations Law shall be applicable.

Chapter IV. Business

(Scope of Business) Article 27. The Corporation shall conduct the following business in order to attain the objectives prescribed in Article 1: (1) Purchase of tobacco leaf, cigarette paper, salt, bittern, crude camphor and camphor oil; (2) Manufacture of tobacco and salt; (3) Sale of tobacco, cigarette paper, salt, bittern, crude camphor and camphor oil; (4) Business pertaining to guidance and encouragement of production to be offered to manufacturers of tobacco leaf, cigarette paper, salt, bittern, crude camphor and camphor oil; (5) Business pertaining to guidance and assistance to be offered to dealer in tobacco, cigarette paper, salt, bittern, crude camphor and camphor oil; (6) Business pertaining to export and import of leaf tobacco, cigarette paper, salt, crude camphor and camphor oil; (7) Business pertaining to execution of matters prescribed in the Tobacco Monopoly Law, Salt Monopoly Law and Crude Camphor and Camphor Oil Monopoly Law, other than those prescribed in each of the preceding items; (8) Business incidental to business prescribed in each of the preceding items.

(Plan of operation) Article 28. The Corporation shall, at the commencement of its business, determine the plan of operation and submit it to the Minister of Finance for approval. Any alteration thereof shall be subject to the same procedure.

Chapter V. Accounting

(Accounting Principle) Article 29. The Corporation shall, until such a time as new legislation governing accounting and finance of public corporations, including the fixing of prices and charges, in the interest of higher business efficiency of such enterprises may be enforced, be deemed an administrative agency of the State, and the provisions of the Special Accounts Law for the Monopoly Bureau and Printing Bureau (Law No.36 of 1947), the Finance Law (Law No.34 of 1947), Accounts Law (Law No.35 of 1947), National Property Law (Law No.73 of 1948) and other laws, and regulations having hitherto applied to accounting and finance of the Government Monopoly Enterprise shall be conformed to by the Corporation in its accounting and finance matters other than those provided for by this Law and the Cabinet Orders of Ministerial Ordinances established in accordance with this Law. 2 In cases where the Corporation is deemed an administrative agency by virtue of the preceding paragraph, "the President of the Corporation" shall be deemed "the chief of a Ministry or of an Agency," and "the Corporation" , shall be deemed "a ministry or an agency," excepting when "the Corporation" is deemed "a department in the Ministry of Finance" as provided for by Cabinet Order.

(Business Year) Article 30. The business year of the Corporation shall start in April and end in March of the following year. 2 The Corporation shall finally settle its each business year account by July 31 of the following business year.

(Budget) Article 31. The Corporation shall prepare a budget for each business year and submit the same to the Minister of Finance. 2 The Minister of Finance shall, when the budget is submitted by virtue of the provisions of the preceding paragraph, examine it, adjust it, if necessary, and submit it to the Cabinet for decision. 3 The Cabinet, when it has decided the budget in accordance with the preceding paragraph, shall submit the same, together with the budget of the State, to the Diet. 4 The form, content, and appendices of the budget shall be provided for by Cabinet Order;the procedure for the formulation and submission of the budget shall be determined by the Minister of Finance.

(Supplementary Budget) Article 32. Only when it is necessary and inevitable due to a cause arising after the formulation of the budget, a supplementary budget may be formulated in the same manner as the regular budget for submitting to the Minister of Finance. 2 The provisions of paragraphs 2 to 4 inclusive of the preceding Article shall apply mutatis mutandis to the supplementary budget referred to in the preceding paragraph.

(Settlement of Account) Article 33. The Corporation shall prepare, for each business year, an inventory, balance sheet and a profit and loss statement, and shall submit the same to the Minister of Finance for approval not later than a month after the close of the settled account. 2 The Corporation shall, when the approval of the Minister of Finance is obtained by virtue of the provisions of the preceding paragraph, without delay make public the inventory, balance sheet and profit and loss statement.

Article 34. The Corporation shall, in accordance with the form of the budget, prepare the statement of the settled account for each business year, and submit the same to the Minister of Finance. 2 The Minister of Finance shall, when the statement is received in accordance with the provisions of the preceding paragraph, forward the same to the Cabinet.

Article 35. The Cabinet, in turn, shall forward the statement to the Board of Audit, when it received the same in accordance with paragraph 2 of the preceding Article. 2 After the auditing by the Board of Audit, the Cabinet shall submit, together with the statement of the settled account for revenues and expenditures of the State, the statement of the settled account of the Corporation to the Diet.

(Contribution of Profits to the Government) Article 36. The Corporation shall turn over the profits of each business year to the National Treasury. 2 The Corporation shall turn over the profits referred to under the preceding paragraph in approximate sums on the request of the Government even before the settlement of accounts in accordance with the provisions of a Cabinet Order. 3 The method of computing and the procedures involved in turning over profits referred to under paragraph 1 shall be provided for by Cabinet Order.

(Loan) Article 37. The Corporation may receive long term loans and make temporary borrowings from the Government, with the approval of the Minister of Finance, but it shall not borrow from private banks or other private sources. 2 The ceiling for borrowings referred to in the provisions of the preceding paragraph shall be set forth in the budget. 3 The temporary borrowing referred to in the provisions of paragraph 1 shall be redeemed within the business year concerned.

(Loan by Government) Article 38. The Government may loan funds to the Corporation.

(Plan of redemption) Article 39. The Corporation shall, for each business year, set up a plan for the redemption of long term loans referred to under paragraph 1 of Article 37 for the approval of the Minister of Finance.

(Disposition of Cash Arising Out of Business) Article 40. The regulations governing the disposition of money of the National Treasury shall be conformed to by the Corporation as provided for by law or Cabinet Order, in connection with moneys arising out of business operations.

(Accounting Books) Article 41. The Corporation shall prepare books to be able properly and clearly to show the nature and details of its business and conditions of business operations and accounting.

(Restriction on the Disposal of Assets) Article 42. The Corporation shall not transfer, trade or put in mortgage its assets of substantial importance without the authorization of the Minister of Finance. 2. The scope and nature of the assets of substantial importance referred to under the preceding paragraph shall be determined by the Minister of Finance.

(Audit) Article 43. The accounting of the Corporation shall be subject to audit by the Board of Audit.

Chapter VI. Supervision

(Supervision) Article 44. The Corporation shall be placed under the supervision of the Minister of Finance;provided that the Corporation shall be under the supervision of the Attorney-General in regard to litigation in which the Corporation is a party or participant. 2 The Minister of Finance may issue to the Corporation orders concerning business necessary for supervision, whenever required.

(Dismissal of Officers) Article 45. The Minister of Finance may dismiss an officer of the Corporation when the latter has come to fall under any one of the following items: (1) When he has violated this Law, the Tobacco Monopoly Law, Salt Monopoly Law, Crude Camphor and Camphor Oil Monopoly Law, orders issued pursuant to these Laws, or Government orders; (2) When he has been sentenced to criminal punishment heavier than confinement; (3) When he has been declared incompetent, or quasi-incompetent or adjudicated insolvent; (4) When he cannot perform his duties due to mental or physical disability, or when he is otherwise considered unfit as an official of the Corporation. 2 The Minister of Finance shall request the advice of the Council in advance when he intends to dismiss an official by virtue of the provisions of item 4 of the preceding paragraph.

(Report and Auditing) Article 46. The Minister of Finance may, when deemed it necessary to do so, order to submit the reports from the Corporation, or let his staff enter the office of the Corporation to examine the business conditions, books, papers and other items that may be necessary. 2 When a staff member of the Ministry of Finance enters the office of the Corporation for examination, in accordance with the provisions of the preceding paragraph he shall carry a certificate to identify himself, and present it upon request to interested parties.

Chapter VII. Penal Provisions

Article 47. In any of the following cases, the officer of the Corporation who is responsible for the violation shall be subjected to a fine not exceeding 100,000yen; (1) In case the Corporation fails to request the authorization or to get the approval from the Minister of Finance when an authorization or an approval is required under this Law. (2) In case the Corporation engages in business other than that provided for under Article 27; (3) In case of the failure of registration or of deliberately untrue statements in connection with registration, in violation of the Cabinet Order issued in accordance with the provisions of paragraph 1 of Article 5; (4) In case of the violation of supervisory orders issued by the Minister of Finance in accordance with the provisions of paragraph 2 of Article 44; (5) In case the report required according to the provisions of the preceding Article is not submitted or contains false statements, or the examination under the same Article is refused, obstructed or evaded.

Article 48. A person who has used the name of the Japan Monopoly Public Corporation or a similar name thereto in violation of the provisions of Articles 7 shall be subjected to a fine not exceeding 10,000 yen or imprisonment not exceeding one year.

Chapter VIII. Miscellaneous Provisions

(Application of Other Laws and Regulations) Article 49. With regard to the Administration Appeal Law (Law No.105 of 1890), the Laid Expropriation Law (Law No.29 of 1900) and other laws and regulations designated by the Cabinet Order, the Corporation shall be deemed a national administrative agency and, according to the Cabinet Order, such law and regulations shall be applicable to mutatis mutandis to the Corporation.

(Pension) Article 50. In case a person who is currently a national public servant as prescribed in Article 19 of the Pension Law (Law No.43 of 1923) at the time of enforcement of this Law and becomes without intermission an officer or employee of the Corporation, he shall be regarded as a civilian official prescribed in Article 20 of the same Law in continuous service, drawing salary from the national treasury, and the provisions of the Pension Law shall be applicable to him mutatis mutandis for the time being. 2 In case the Pensions Law is applicable mutatis mutandis in accordance with the provision of the preceding paragraph, the Corporation shall be regarded as an administrative agency for matters pertaining to pension benefits and other benefits. 3 As regards funds for payment of pensions to be granted to persons prescribed in paragraph 1 or their surviving family, and pensions whose payment had become due prior to the enforcement of this Law, and of which the pensioners had been drawing their salaries or wages from the former Special Account for the Monopoly Bureau, the Corporation shall be regarded as continuing in existence as the Special Account for Monopoly Bureau, and the provisions of the Law concerning Transfer to General Account of Share of Pension Instalment to be borne by Special Accounts (Law No.8 of 1931) shall be applicable mutatis mutandis. 4 In case the Pension Law is applicable mutatis mutandis in accordance with the provision of paragraph 1, the payment to be made by officers or employees of the Corporation, in accordance with the provision of paragraph 1 of Article 59 of the Pensions Law as is applicable mutatis mutandis by virtue of the same paragraph, shall be made to the Corporation, notwithstanding the provision of the same paragraph.

(Mutual Aid Association) Article 51. Officers and employees of the Corporation shall be deemed to be employees who are in the service of the Government and paid allowances by the National Treasury, for purposes of the application mutatis mutandis to the provisions of the National Public Service Mutual Aid Association Law (Law No.69 of 1948);in this case, "Agencies" as referred to in the Law shall read "the Japan Monopoly Public Corporation" , "Chiefs of Agencies" shall read "the President of the Japan Monopoly Public Corporation" and "the National Treasury" as referred to in Article 69 (excepting cases where paragraph 1, item 3 of the same Article is to be applicable mutatis mutandis) and in Article 92 shall read "the Japan Monopoly Public Corporation" and "members... representing the Government" as referred to in paragraph 2 of Article 73 and paragraph 2 of Article 75 shall read "members... representing Japan Monopoly Public Corporation." 2 The mutual aid association existing by virtue of the provisions of item 3, paragraph 2 of Article 2 of the National Public Service Mutual Aid Association Law shall, in accordance with the provisions of paragraph 1 of Article 2 of the same Law as is applicable mutatis mutandis by virtue of the provisions of the preceding paragraph, become the Mutual Aid Association to be set up in the Corporation and shall eontinue to exist without changing identity.

Article 52. The National Treasury shall share such cost of the Japan Monopoly Public Corporation Mutual Aid Association as is prescribed in item 3, paragraph 1 of Article 69 of the National Public Service Mutual Aid Association Law for the Mutual Aid Association set up in the Corporation.

Article 53. Officers and employees of the Corporation, shall be deemed to be employed by the Government for purposes of the application of the provisions of paragraph 1 of Article 12 of the Health Insurance Law (Law. No.70 of 1922), Article 16-(2) of the Welfare Annuity Insurance Law (Law No.60 of 1941) and Article 15 of the Seamen's Insurance Law (Law No.73 of 1939).

(Damage Indemnification) Article 54. Officers and employees of the Corporation shall be deemed to be employees who are in the service of the Government and paid allowances by the National Treasury for the purposes of the application mutatis mutandis of the provisions of the National Public Service Accident Compensation Law (Law No.19 of 1948). In this case, "the Government" as referred to in the said Law (with the exception of "the Government" mentioned in "the Government and mayors of cities, headmen of towns or villages" of Article 42) shall read "the Japan Monopoly Public Corporation" and "the account" and "the Account concerned" as referred to in the said Law shall read "the Japan Monopoly Public Corporation" . 2 The enterprise of the Corporation shall be deemed the enterprise directly undertaken by the Government for the purposes of the application of paragraph 3 of Article 3 of the Laborers Accident Compensation Insurance Law (Law No.50 of 1947). 3 The cost of indemnification arising out of the provisions of paragraph 1 shall be borne by the Corporation.

(Unemployment Insurance) Article 55. Officers and employees of the Corporation shall be deemed to be employed by the Government for the purposes of the application of the provisions of Article 7 of the Unemployment Insurance Law (Law No.146 of 1947).

Article 56. The National Treasury shall, in case the Corporation is to pay insurance money in excess of the requirement set forth in the Unemployment Insurance Law to officers or employees of the Corporation, share a part of the amount equal to that of the requirement of the Unemployment Insurance Law at the ratio of share as prescribed under paragraph 1 of Article 28 of the same Law.

Supplementary Provisions: 1. This Law shall come into force as from April 1, 1949. 2. Administrative procedures for the establishment of the Corporation, transfer of property and personnel from the State to the Corporation, and other matters necessary for the enforcement of this Law shall be provided for separately by Law or Cabinet Order. Minister of Finance pro tempore Minister of State OYA Shinzo Prime Minister YOSHIDA Shigeru