Article 1.　The Cabinet may nominate those persons who are eligible for membership of the Board of Directors before the enforcement of the Japanese National Railways Law (Law No.256, 1948) after the example of the provisions of Article 12 of the same Law.

2　The Cabinet may nominate the person who is eligible for President before the enforcement of the Japanese National Railways Law after the example of the provisions of Paragraphs 1 and 2 of Article 20 and Article 21 of the same Law based on the recommendation of those persons who are eligible for membership stipulated in the preceding paragraph.

3　In the case where the preceding two paragraphs stipulate to follow the example of the provisions of Article 12 or 21 of the Japanese National Railways Law, "the Japanese National Railways" in Item 5, Paragraph 3, Article 12 of the same Law, shall read "the Ministry of Transportation in respect to the government railway, the government operated ferry service and motor transportation relative to the government railway and the business incidental thereto" .

4　The provision of Article 17 of the Japanese National Railways Law shall apply mutatis mutandis to those persons who are eligible for membership stipulated in Paragraph 1.

5　Those persons who are eligible for membership and President, nominated by the provisions of Paragraphs 1 and 2 shall be regarded as appointed to the first Members of the Board of Directors and the President respectively of the Japanese National Railways at the time of the enforcement of the Japanese National Railways Law, in accordance with the provisions of the same Law.

Article 2.　Except otherwise designated by the Minister of Transportation, of the Ministry of Transportation employees (the Ministry of Transportation employees hereinafter means the officials, those treated as officials, employees and apprentices), those who, at the time of the enforcement of the Japanese National Railways Law, are in the service of the Railway Board of the Ministry of Transportation and the offices or other organs which are principally in charge of the business pertaining to the government railway and the business incidental thereto, and which are designated by the Minister of Transportation, shall lose their status of Ministry of Transportation employees at the time of the enforcement of the Japanese National Railways Law and be transferred to the Japanese National Railways.

2　Of the Ministry of Transportation employees, those who, at the time of the enforcement of the Japanese National Railways Law, are in the service of the Minister's Secretariat and the offices or other organs which are in charge of the business pertaining to the government railway, the government operated ferry service and motor transportation relative to the government railway and the business incidental thereto, (except those offices and organs designated by the Minister of Transportation according to the preceding paragraph) shall lose the status of the Ministry of Transportation employees at the time of the enforcement of the Japanese National Railways Law and be transferred to the Japanese National Railways in case they are designated by the Minister of Transportation.

3　In the case where the Ministry of Transportation employees are transferred to the Japanese National Railways as provided for by the preceding two paragraphs, the retirement allowances shall not be allowed to them.

4　The term during which those employees stipulated in the preceding paragraph served as the government employees shall be regarded as the term in the service of the Japanese National Railways with regard to the retirement allowances.

Article 3.　Those who have become the employees of the Japanese National Railways as provided for by the provisions of Paragraph 1 or 2 of the preceding Article, and who are the members of the local assembly at the time of the enforcement of the Japanese National Railways Law, may remain the same members during their term of office.

Article 4.　The rights and duties possessed or owned by the State at the time of the enforcement of the Japanese National Railways Law with regard to the Government Railway, the government operated ferry service and motor transportation relative to the government railway and the business incidental thereto, shall be succeeded to the Japanese National Railways at the time of the enforcement on the Japanese National Railways Law, except those otherwise provided by laws.

Article 5.　Those lawsuits in which the State is a party with regard to the businesses mentioned in the preceding Article and which are pending at the time of the enforcement of the Japanese National Railways Law shall be succeeded to the Japanese National Railways at the same time. The lawsuits in which the administrative office presiding over the businesses mentioned in the preceding Article is a party, shall be succeeded to the President of the Japanese National Railways.

Article 6.　Those who are the members of the Mutual Aid Association provided for by the provision of Item 8, Paragraph 2, Article 2 of the National Public Service Mutual Aid Association Law (Law No.69, 1949) and are not transferred to the Japanese National Railways according to the provision of Paragraph 1 or 2, Article 2 of this Law, shall continuously be the members of the Mutual Aid Association to be established according to the provision of Paragraph 2, Article 57 of the Japanese National Railways Law (hereinafter referred to as the Government Railways Mutual Aid Association) for a time after the enforcement of the Japanese Notional Railways Law.

2　The National Treasury shall bear the expenses enumerated in the items, Paragraph 1, Article 69 and Article 92 of the National Public Service Mutual Aid Association Law which are pertinent to those to whom the provision of the preceding paragraph is applied, and the Government shall pay such expenses to the Government Railways Mutual Aid Association.

Article 7.　In the case where the Japanese National Railways has succeeded to the rights relative to fixed properties in accordance with the provision of Article 4, the entrusting document of the registration to make in respect to the said rights need not be annexed with the approving document by registration obligator, notwithstanding the provision of Article 31, Paragraph 1 of the Fixed Property Registration Law (Law No.24, 1899).

2　In the case where the President of the Japanese National Railways have notified publicly through the Official Gazette to the effect that he designated the officers or employees of the Japanese National Railways as his agent in entrusting the registration of rights concerning the fixed properties, the said agent need not submit the documents enumerated in Item 5, Paragraph 1, Article 35 of the Fixed Property Registration Law.

Article 8.　The properties to be succeeded to the Japanese Natioal Railways from the Government at the date of the enforcement of the Japanese National Railways Law shall be the assets and liabilities other than the public bonds and borrowings in the Government Railways Special Account as of May 31, 1949.

Article 9.　The public bonds and borrowings borne by the Government Railways Special Account on May 31, 1949, shall be reverted to the General Account at the date of the enforcement of the Japanese National Railways Law.

2　The Japanese National Railways shall owe the Government the liabilities equal to the amount of the public bonds and borrowings stipulated in the preceding paragraph at the date of the enforcement of the Japanese National Railways Law.

3　In respect to the liabilities sripulated in the preceding paragraph, the Japanese National Railways shall deliver to the Government the certifitate to manifest the said liabilities.

4　The term of redemption, the rate of interest and the due date of interest of the liabilities owed by the Japanese National Railways to the Government according to the provision of Paragraph 2, shall be those of the public bonds and borrowings reverted to the General Account according to the provision of Paragraph 1.

5　In case of having converted the public bonds and borrowings reverted to the General Account in accordance with the provision of Paragraph 1, the Government may alter the term of redemption, the rate of interest and the due date of interest of the liabilities owed by the Japanese National Railways to the Government according to the provision of Paragraph 2 based on the term of redemption, the rate of interest, the due date of interest and the issue par (in respect to the public bonds) of the public bonds and borrowings.

Article 10.　In the case where there arises any deficit in the cash for the payment of the Japanese National Railways, the Government may loan temporarily to the Japanese National Railways from the surplus fund of the national treasury as the loan stipulated in Article 45 of the Japanese National Railways Law.

Article 11.　The sum of capital stipulated in Article 5 of the Japanese National Railways Law shall be equal to the amount of assets (including the amount enumerated in Adjustment Account) minus the amount of liabilities as of May 31, 1949.

Article 12.　After the enforcement of the Japanese National Railways Law, business affairs relating to the use of reserve fund, settlement of account, property, receipt and payment and other accounting matters for the fiscal years of 1948 and 1949 in the Government Railways Special Account, shall be executed by the Japanese National Railways by following the example as heretofore.

Article 13.　The Japanese National Railways may loan the office being actually used by the Government at the time of the enforcement of the Japanese National Railways Law to the Government without compensation.

Article 14.　A part of the Railway construction Law (Law No.37, 1922) shall be amended as follows:

Article 15.　A part of the Law Governing Japanese Government Railways Fares and Charges (Law No.112, 1948) shall be amended as follows:

Article 16.　A part of the law for the Nippon Express Company Ltd.(Law No.46, 1937) shall be amended as follows:

Article 17.　A part of the Teito Rapid Transit Railway Corporation Law (Law No.51, 1941) shall be amended as follows:

Article 18.　A part of the Stamp Tax Law (Law No.54, 1899) shall be amended as follows:

Article 19.　A part of the Registration Tax Law (Law No.27, 1896) shall be amended as follows:

Article 20.　A part of the Transit Tax Law (Law No.43, 1940) shall be amended as follows:

Article 21.　A part of the National Public Service Mutual Aid Association Law (Law No.69, 1948) shall be amended as follows:

Article 22.　A part of the Law concerning the Transfer from the General Account to meet the Deficits in Revenues of the fiscal year of 1947-48 of the Special Account for Deposits Bureau of Ministry of Finance, the Special Accounts for Government Railway, the Special Accounts for Communication Service and the Insurance Sub-Account and the Annuity Sub-Account of the Special Account for Post Insurance and Postal Annuity (Law No.170, 1947), the Law concerning the Transfers from the General Account to the Special Account for Deposits Bureau, of the Ministry of Finance and Other Three Special Accounts, pursuant to the Measures relative to the Payment of Salaries and Others of Government Employees, (Law No.13, 1948), and the Law concerning the Transfer from the General Account to cover the Deficits in Revenues of the Special Account for Deposits Bureau, Ministry of Finance and Other Two Special Accounts for the Fiscal Year 1948-1949 (Law No.18, 1948) shall be amended as follows respectively:

Article 23.　The Laws and Ordinances enumerate below shall be abolished.