(Establishment)
Article 1. There shall be established the Foreign Exchange Fund in order to expedite the purchase, sale and incidental transactions thereto by the Government of foreign exchanges, etc.(meaning foreign means of payment and foreign claimable assets prescribed in Article 6 paragraph 1 of the Foreign Exchange and Foreign Trade Control Law (Law No.228 of 1949), and gold and silver bullion necessary for settlement of external payment;hereinafter the same), and a Special Account shall be established in order to handle the accounting of its management as distinct from the General Account.
(Administration and Management)
Article 2. This Account shall be administered by the Prime Minister having jurisdiction over the Foreign Exchange Control Board, in accordance with the provisions of the laws and orders.
2 The Prime Minister shall make the Foreign Exchange Control Board manage this Account.
(Foreign Exchange Fund)
Article 3. The Foreign Exchange Fund shall consist of the money transferred from the General Account in accordance with the provisions of the budget.
(Temporary Borrowings and Accommodation Bills for Covering the Foreign Exchange Fund)
Article 4. In case there is any shortage in the cash (meaning the cash in yen;hereinafter the same) belonging to the Foreign Exchange Fund, it may be made up for by making temporary borrowings and/or issuing accommodation bills on the responsibility of this Account.
2 The maximum amount of the temporary borrowings and accommodation bills prescribed in the preceding paragraph shall be approved by the Diet in the budget.
3 The temporary borrowings and accommodation bills prescribed in paragraph 1 shall be redeemed within a year.
(Management of the Foreign Exchange Fund)
Article 5. The Foreign Exchange shall be operated for the purchase and sale of foreign exchanges, etc.
2 The Foreign Exchange Control Board shall be authorized, when it is deemed necessary for purchase, sale and incidental transactions thereto of foreign exchanges, etc., to deposit with or loan to (including cases pursuant to the conclusion of contracts of overdraft;hereinafter the same in this paragraph) the foreign exchange banks (meaning the foreign exchange banks prescribed in Article 10 paragraph 3 of the Foreign Exchange and Foreign Trade Control Law) and foreign banks located abroad designated by the Minister of Finance (hereinafter referred to, en bloc, as "the foreign exchange banks, etc." ) the foreign exchanges, etc. belonging to the Foreign Exchange Fund, or to deposit with or loan to the foreign exchange banks, etc. the cash belonging to the said Fund.
3 The Foreign Exchange Control Board shall be authorized, when it is deemed necessary for purchase, sale and incidental transactions thereto of foreign exchanges, etc., to receive deposits of or to borrow (including cases pursuant to the conclusion of the contract of overdraft) foreign exchanges, etc. from the foreign exchange banks, etc. on the responsibility of this Account, or to accept foreign bills of exchange or to undertake the guarantee of the liabilities in connection with foreign exchanges, etc. of the foreign exchange banks, etc. or to receive deposits of or borrow under the contract of overdraft, the cash from the foreign exchange banks, etc. on the responsibility of this Account.
4 The Foreign Exchange Control Board shall be authorized, when it is deemed necessary for purchase, sale and incidental transactions thereto of foreign exchanges, etc. to be entrusted with foreign exchanges, etc. by the foreign exchange banks, etc., on the responsibility of this Account, or to entrust the foreign exchange banks, etc. with foreign exchanges, etc.
5 When there is any surplus in the cash belonging to the Foreign Exchange Fund in this Account, it may be entrusted with the Trust Fund Bureau.
(Entrusting of the Management Business of the Foreign Exchange Fund)
Article 6. The Foreign Exchange Control Board may make the Bank of Japan handle the business concerning the management of the Foreign Exchange Fund prescribed in the preceding Article.
(Disposal of Profits and Losses in Connection with the Purchase and Sale of Foreign Exchanges, Etc.)
Article 7. The profits accrued in connection with the purchase and sale of foreign exchanges, etc. shall be transferred into the annual revenues of this Account of the fiscal year concerned, and the losses accrued in connection with the purchase and sale of foreign exchanges, etc. shall be covered by the annual expenditures of this Account of the fiscal year concerned; provided that, in case the amount of budgetary appropriation of this Account for the fiscal year concerned for the said covering is short of the actual amount to cover, the shortage concerned shall be covered in the following fiscal year.
2 The necessary matters concerning the method of accounting of the profits and the losses, the time of transfer of the said profits and of covering of the said losses prescribed in the preceding paragraph shall be provided for by Cabinet Order.
(Reevaluation of Foreign Exchanges, etc. and Disposal of Profit or Loss in Connection therewith)
Article 8. Whenever there occurs a change in the foreign exchange rate (meaning as regards the Foreign Exchanges, etc. other than gold and silver bullion, the basic rate or the cross rate of foreign exchange designated by the Minister of Finance in accordance with the provision of Article 7 paragraph 1 or 2 of the Foreign Exchange and Foreign Trade Control Law, and as regards gold and silver bullion, the controlled price prescribed by the Price Control Ordinance (Imperial Ordinance No.118 of 1946);hereinafter the same), the foreign exchanes, etc. belonging to the Foreign Exchange Fund shall be reevaluated by the foreign exchange rate after change.
2 The profit or loss accrued in connection with the reevaluation prescribed in the preceding paragraph, shall be settled as the profit or the loss by reevaluation of the Foreign Exchange Fund.
(Annual Revenues and Expenditures)
Article 9. In this Account, the annual revenues shall be the profits transferred in accordance with the provision of Article 7 paragraph 1, proceeds in connection with the management of the Foreign Exchange Fund (meaning, with respect to these expressed in foreign currency, the amount converted in yen thereof, and excluding the profits prescribed in Article 7 paragraph 1), proceeds by the borrowings or the accommodation bills prescribed in the proviso to Article 18 paragraph 2, the transfer from the General Account for covering shortage prescribed in Article 14 and incidental sundry receipts;the annual expenditures shall be business handling expenses, expenses for entrusting businesses, expenses for the management of the Foreign Exchange Fund (meaning, with respect to those expressed in foreign currency, the amount converted in yen thereof), money to redeem the borrowings and the accommodation bills prescribed in the proviso to Article 18 paragraph 1, interests to borrowings, temporary borrowings and accommodation bills, expenses concerning the issue and redemption of accommodation bills, the money to cover the losses prescribed in Article 7 paragraph 1 and incidental miscellaneous expenses.
(Preparation and Sending of Statement of Estimated Annual Revenues and Expenditures)
Article 10. The Prime Minister shall prepare, in each fiscal year, the statement of estimated annual revenues and expenditures of this Account and send it to the Minister of Finance.
2 The statement of estimated annual revenues and expenditures prescribed in the preceding paragraph shall be accompanied with the following documents:
(1) The balance sheet and the profit and loss statement of the fiscal year before the preceding;
(2) The estimated balance sheets and the estimated profit and loss statements of the preceding fiscal year and the fical year concerned.
(Classification of the Budget of Annual Revenues and Expenditures)
Article 11. The budget of annual revenues and expenditures of this Account shall be divided into titles and items, according to the source of revenue and the purpose of expenditure.
(Preparation and Submission of the Budget)
Article 12. The Cabinet shall prepare the budget of this Account every fiscal year and submit it to the Diet together with the budget of the General Account.
2 The budget under the preceding paragraph shall be accompanied with the statement of estimated annual revenues and expenditures prescribed in Article 10 paragraph 1 and the documents prescribed in each item of paragraph 2 of the same Article.
(Transfer of Surplus on the Settlement of Accounts)
Article 13. In case there is any amount of surplus obtained by deducting the sum total of the amounts as disbursed of business handling expenses, expenses for entrusting businesses, expenses for the management of the Foreign Exchange Fund, interests to temporary borrowings, borrowings and accommodation bills, expenses concerning the issue and redemption of accomodation bills, the money to cover the losses prescribed in Article 7 paragraph 1 and incidental miscellaneous expenses and of the amount of appropriation to be carried forward to the next fiscal year under the provision of Article 22 paragraph 1 (hereinafter referred to as "the sum total of the disbursed amounts, etc." ) from the sum total of the amounts as received of the profits transferred in accordance with the provision of Article 7 paragraph 1, proceeds in connection with the management of the Foreign Exchange Fund and incidental sundry receipts (hereinafter referred to as "the sum total of the received amounts" ) on the settlement of accounts of annual revenues and expenditures of this Account in each fiscal year, it shall be transferred to the revenues of the General Account.
(Covering of Shortage on the Settlement of Accounts)
Article 14. In case there is any amount of shortage obtained by deducting the sum total of the disbursed amounts, etc. from the sum total of the received amounts on the settlement of accounts of annual revenues and expenditures of this Account in each fiscal year, it shall be covered with the appropriation of the General Account in the fiscal year concerned; provided that, in case it cannot be covered owing to the budget of appropriation of the fiscal year concerned of the General Account having no amount specified for the said covering, or to the specified amount for the said covering in the fiscal year concerned being short of the actual amount to cover, the amount that can not be covered shall be covered in the following fiscal year.
(Preparation and Sending of the Final Statement of Annual Revenues and Expenditures)
Article 15. The Prime Minister shall prepare the final statement of annual revenues and expenditures every fiscal year with the same classification as that of the statement of estimated annual revenues and expenditures, and send it to the Minister of Finance.
2 The final statement of annual revenues and expenditures of the preceding paragraph shall be accompanied with the balance sheet and the profit and loss statement of the fiscal year concerned.
(Preparation and Submission of the Settlement of Accounts of Annual Revenues and Expenditures)
Article 16. The Cabinet shall prepare the settlement of accounts of annual revenues and expenditures of this Account every fiscal year, and submit it to the Diet together with the settlement of accounts of annual revenues and expenditures of the General Account.
2 The settlement of accounts of annual revenues and expenditures of the preceding paragraph shall be accompanied with the final statement of annual revenues and expenditures prescribed in paragraph 1 of the preceding Article and the balance sheet and the profit and loss statement of the fiscal year concerned prescribed in paragraph 2 of the same Article.
(Deposit of Surplus Cash on Payment of Annual Expenditures)
Article 17. In case there is any surplus cash for payment of annual expenditures in this Account, it may be deposited with the Trust Fund Bureau.
(Temporary Borrowings, Borrowings and Accommodation Bills, and Diversion of Cash Belonging to the Foreign Exchange Fund)
Article 18. In case there is any shortage of cash for payment of annual expenditures in this Account, temporay borrowings may be made or accomodation bills may be issued on the responsibility of this Account, or the cash belonging to the Foreign Exchange Fund may be diverted.
2 The temporary borrowings, accommodation bills and diverted money under the provision of the preceding paragraph shall be redeemed by the revenues of the fiscal year concerned;provided that they cannot be redeemed owing to the shortage of revenues, borrowings may be made or accommodation bills may be issued on the responsibility of this Account up to the amount that cannot be redeemed.
3 The borrowings and the accommodation bills under the provision of the proviso to the preceding paragraph shall be redeemed within a year.
(Business concerning Floatation, Redemption, Etc. of Temporary Borrowings, Borrowings and Accommodation Bill)
Article 19. Business concerning floatation, redemption, etc. of temporary borrowings and accommodation bills under the provision of Article 4 paragraph 1, temporary borrowings and accommodation bills under the provisions of the preceding Article, and borrowings and accommodation bills under the provision of the proviso to paragraph 2 of the same Article shall be managed by the Minister of Finance.
(Transfer into National Debt Consolidation Fund Special Account)
Article 20. The amount necessary for disbursement of the interests to the temporary borrowings and accommodation bills under the provision of Article 4 paragraph 1, the interests to and the money to redeem the borrowings and accommodation bills under the provision of Article 18 paragraph 1, and the miscellaneous expenses concerning the issue and redemption of accommodation bills belonging to the responsibility of this Account and the redemption of the borrowings and accommodation bills under the provision of the proviso to the same paragraph shall be transferred into the National Debt Consolidation Fund Special Account every fiscal year.
(Fund Obligation Plan and Fund Payment Plan)
Article 21. The Foreign Exchange Control Board shall decide, as prescribed by Cabinet Order, the necessary amounts for contracts and other acts to cause the purchase of foreign exchanges, etc., or the deposits or loans of the cash belonging to the Foreign Exchange Fund (hereinafter referred to as "the fund obligation" ), and the necessary amounts for payment of the cash belonging to the Foreign Exchange Fund (hereinafter referred to as "the fund payment" ), shall prepare the documents concerning the plan of the fund obligation (hereinafter referred to as "the fund obligation plan" ) and the plan of the fund payment (hereinafter referred to as "the fund payment plan" ), and shall submit them to the Minister of Finance and get the approval from him.
2 When the Minister of Finance has approved the fund obligation plan and the fund payment plan prescribed in the preceding paragraph, he shall notify to that effect to the Foreign Exchange Control Board and the Board of Audit, as regards the fund obligation plan, and to the Foreign Exchange Control Board, the Board of Audit and the Bank of Japan, as regards the fund payment plan.
3 When the Foreign Exchange Control Board intends to make the fund obligation or the fund payment, it shall not exceed the amounts provided for in the fund obligation plan or the fund payment plan as approved by the Minister of Finance in accordance with the provision of paragraph 1.
(Carrying Forward of Undisbursed Amount)
Article 22. A budgetary appropriation in this Account covering such expenditures as has become binding and yet has not been disbursed in fully by the conclusion of receipt and payment for the fiscal year concerned may be carried forward to and disbursed in the following fiscal year.
2 In case the Prime Minister has made the carrying forward in accordance with the provision of the preceding paragraph, he shall notify it to the Minister of Finance and the Board of Audit.
3 In case the carrying forward has been made in accordance with the provision of paragraph 1, the expenses concerned shall be deemed to be the budget allocated under the provision of Article 31 paragraph 1 of the Finance Law (Law No.34 of 1947).
(Obtaining of Gold and Silver Bullion)
Article 23. Gold and silver bullion that can be obtained by this Account shall be only those necessary for settlement of external payment.
(Entrusting of Business concerning the Operation of this Account)
Article 24. The Foreign Exchange Control Board may entrust the business concerning the operations of this Account excluding that prescribed in Article 6 to the Bank of Japan.
2 In the case under the preceding paragraph, the Foreign Exchange Control Board may deliver funds necessary for disbursement of the expenses for the management of the Foreign Exchange Fund to the Bank of Japan.
(Enforcement Provision)
Article 25. Necessary procedural and administrative matters for enforcement of this Law shall be prescribed by Cabinet Order.
Supplementary Provisions:
1 This Law shall come into force as from April 1, 1951.
2 The Foreign Exchange Special Account Law (Law No.227 of 1949) shall be abolished.
3 As regards the receipt and payment of the fiscal year 1950-51 and the settlement of accounts of the fiscal years 1949-50 and 1950-51 of the Foreign Exchange Special Account, former procedures shall still be effective.
4 With respect to the interests to borrowings, short term borrowings and accommodation bills, the expenses concerning the issue and redemption of the accomodation bills, the business handling expenses, the expenses for entrusting businesses and incidental sundry expenses, a budgetary appropriation of the Foreign Exchange Special Account covering such expenditures as has become binding in the fiscal year 1950-51 (hereinafter to be referred to as "the payable expenditures" ) and yet has not been disbursed in full by the conclusion of receipt and payment for the said fiscal year, may be carried forward to and disbursed in the Foreign Exchange Fund Special Account.
5 The provisions of Article 22 paragraphs 2 and 3 shall apply mutatis mutandis to the carrying forward prescribed in the preceding paragraph.
6 The assets (excluding cash and claims for receivable amount) and liabilities (excluding those concerning the payable expenditures) which have belonged to the Foreign Exchange Special Account at the time of enforcement of this Law shall belong to the Foreign Exchange Fund.
7 Of the cash belonging to the Foreign Exchange Special Account at the time of the conclusion of receipt and payment of the said Special Account of the fiscal year 1950-51 (hereinafter referred to as "the conclusion of receipt and payment" ), the amount excluding the amount equivalent to the amount of liabilities concerning the payable expenditures that have not been liquidated by the time of the conclusion of receipt and payment (hereinafter referred to as "the liabilities to be carried forward" ), and the claims for receivable amount which belongs to the said Special Account at the time of conclusion of receipt and payment shall belong to the Foreign Exchange Fund at the time of the conclusion of receipt and payment.
8 The liabilities to be carried forward shall belong to the Foreign Exchange Fund Special Account at the time of the conclusion of receipt and payment, and shall be liquidated with the annual expenditures of the said Special Account.
9 Of the cash belonging to the Foreign Exchange Special Account at the time of the conclusion of receipt and payment, the amount equivalent to the amount of the liabilities to be carried forward, shall be transferred to the annual revenues of the Foreign Exchange Fund Special Account at the said time.
10 Of the borrowings made of accommodation bills issued in accordance with the provision of the proviso to Article 14 paragraph 4 of the former Foreign Exchange Special Account Law, the amount not yet redeemed as at the time of enforcement of this Law shall be considered as the temporary borrowings made or accommodation bills issued at the date of the said borrowing or issuing in accordance with the provision of Article 4 paragraph 1; provided that, the amount of the said borrowings and accommodation bills shall not be counted in case of calculation of the maximum amount of temporary borrowings and accommodation bills prescribed in paragraph 2 of the said Article.
11 The Foreign Exchange and Foreign Trade Control Law shall be partially amended as follows:
In Articles 21 and 22, "the Foreign Exchange Special Account" shall be amended as "the Foreign Exchange Fund Special Account" .
12 The Foreign Exchange Control Board Establishment Law (Law No.229 of 1949) shall be partially amended as follows:
In Article 3 item (1), "the Foreign Exchange Special Account" shall be amended as "the Foreign Exchange Fund Special Account" .
In Article 4 item (9), "into the Foreign Exchange Special Account" shall be amended as "into the Foreign Exchange Fund Special Account" , and "that Account" shall be amended as "the Foreign Exchange Fund" .
In Article 14 paragraph 2, "the Foreign Exchange Special Account" shall be amended as "the Foreign Exchange Fund Special Account" .
13 The Law concerning Transfer and Payment from Special Account, Etc. to the General Account for Appropriation for the Retirement Allowances to be Paid to the Retired Officials (Law No.62 of 1950) shall be partially amended as follows:
In Article 1, "the Mint Agency Special Account," shall be amended as "the Foreign Exchange Fund Special Account, the Mint Agency Special Account," .