I hereby promulgate the Law for Partial Amendments to the Law concerning Foreign Investment.
Signed:HIROHITO, Seal of the Emperor
This third day of the fourth month of the twenty-sixth year of Showa (April 3, 1951)
Prime Minister YOSHIDA Shigeru
Law for Partial Amendments to the Law concerning Foreign Investment
The Law concerning Foreign Investment (Law No.163 of 1950) shall be partially amended as follows:
In Article 8 paragraph 2 item (4), "debentures, claimable assets arising from loans, stock or proprietary interest" shall be amended as "debentures or claimable assets" , and the said item shall be made item (5) of the said paragraph;and the following one item shall be added next to item (3) of the said paragraph:
(4) Unless otherwise provided for by Cabinet Order, in the event that payment for the acquisition of stock or proprietary interest is not made with national currency which has been legally obtained from exchange of foreign means of payment for the said acquisition or the equivalent thereof.
In Article 11 paragraph 1, "in a juridical person established under Japanese law (except in cases requiring prior report pursuant to the provisions of the following paragraph)" shall be amended as "(unless it comes within the purview of the stock or proprietary interest as prescribed in the following paragraph) in a juridical person established under the Japanese laws and orders" ;and paragraph 2 of the said Article and item (1) of the said paragraph shall be respectively amended as follows: 2 A foreign investor shall, if he has acquired the stock or proprietary interest in a juridical person established under the Japanese laws and orders which comes under any of the following items, the dividends of which he will not receive by way of payment to a foreign country, file a report thereof with the Foreign Investment Commission in accordance with its Regulations:
(1) Stock or proprietary interest, acquisition of which creates additional assets of the juridical person concerned.
Article 12 shall be amended as follows:
In Article 13, "Japanese law" shall be amended as "the Japanese laws and orders" . Article 17 paragraph 2 shall be made paragraph 4 of the said Article, and in paragraph 3 of the said Article, "preceding two paragraphs" shall be amended as "preceding four paragraphs" , and the said paragraph shall be made paragraph 5 of the said Article;and paragraph 1 of the said Article shall be amended as follows:
In the event that the government, local public entities or other duly authorized persons expropriate or compulsorily purchase, after the enforcement of this Law, pursuant to procedures prescribed by law other than the Foreign Exchange and Foreign Trade Control Law, the whole or a part of property legally owned in Japan by a foreign investor, the document indicating the said effect and matters as provided for by Cabinet Order, shall be submitted to the Minister of Finance in accordance with the provisions of Cabinet Order, when the said foreign investor intends to make payment to a foreign country of the whole or a part of the corresponding amount receivable as the result of the said expropriation or compulsory purchase.
2 In the event that the document as prescribed in the preceding paragraph has been filed, the Minister of Finance shall submit immediately data concerning necessary foreign exchange funds for the payment to a foreign country as stated therein to the Ministerial Council.
3 In the event that data as prescribed in the preceding paragraph have been submitted, the Ministerial Council shall appropriate necessary funds in the foreign exchange budget in order to assure payment to a foreign country of the amount in return as stated therein for the period of one year from the day of the receipt of the said amount.
In Article 24, "filed report or" shall be deleted.
In Article 27, "and acquired stock or proprietary interest pursuant to the said paragraph" shall be deleted.
Paragraphs 4 and 5 of the Supplementary Provisions shall be made paragraphs 6 and 7 of the Supplementary Provisions respectively, and the following two paragraphs shall be added next to paragraph 3 of the Supplementary Provisions.
4 The payment to a foreign country of dividends (only those paid after the date of designation) arising from the stock or proprietary interest which has been acquired by foreign investors pursuant to the following validations and which has been designated by the Foreign Investment Commission in accordance with the application made in accordance with Foreign Investment Commission Regulations within six (6) months from the day of enforcement of this provision shall be deemed to have been authorized in accordance with the provisions of Article 27 of the Foreign Exchange and Foreign Trade Control Law;provided that the same shall be subject to the conditions, if any, stipulated by the Foreign Investment Commission:
(1) Validation as prescribed in the provisions of the Cabinet Order concerning the Acquisition of Properties and/or Rights by Foreign Nationals;
(2) Validation obtained pursuant to the provision of Article 11 paragraph 1 where the application for validation under the provisions of the said paragraph is deemed in accordance with the provision of the preceding paragraph to have been filed.
5 The provisions of Article 8 paragraphs 1 and 2, Article 14, and Article 15 paragraph 2 shall apply mutatis mutandis to the cases as perscribed in the preceding paragraph. In this case, "validating or licensing" , "validate or license" or "validating" referred to in Article 8 paragragh 1 or 2, or in Article 14 shall read "designating" , "designate" or "designation" respectively, and "the preceding paragraph" referred to in Article 15 paragraph 2 shall read "paragraph 4 of the Supplementary Provisions" .
Supplementary Provision:
This Law shall come into force as from the day of its promulgation.
Prime Minister YOSHIDA Shigeru
Attorney-General OHASHI Takeo
Minister for Foreign Affairs YOSHIDA Shigeru
Minister of Finance IKEDA Hayato
Minister of Education AMANO Teiyu
Minister of Welfare KUROKAWA Takeo
Minister of Agriculture and Forestry HIROKAWA Kozen
Minister of International Trade and Industry YOKOO Shigemi
Minister of Transportation YAMAZAKI Takeshi
Minister of Postal Services TAMURA Bunkichi
Minister of Telecommunications TAMURA Bunkichi
Minister of Labor HORI Shigeru
Minister of Construction MASUDA Kaneshichi
President of Economic Stabilization Board YOSHIDA Shigeru