Article 1.　The purpose of this Law is to prevent the abnormal fluctuations of the cocoon and the raw silk prices in order to try to increase the raw silk export and to stabilize the management of raw silk industry.

Article 2.　In order to achieve the purpose as mentioned in the preceding Article, the Government shall sell raw silk in its possession at the ceiling price in compliance with the applications or buy raw silk at the floor price within the limit of the budget.

Article 3.　The ceiling and the floor prices mentioned in the preceding Article as to the standard raw silk (meaning the raw silk with the kind, size and grade as provided for by Cabinet Order;hereinafter the same) shall be determined by the Minister of Agriculture and Forestry, in accordance with the provisions of Cabinet Order, making the standard thereof the amount acquired by adding the amount of the cost necessary for production and sale of raw silk to the amount of production cost of cocoon, taking into consideration the price of principal fibers and commodity prices and other economic situations.

2　The ceiling and the floor prices mentioned in the preceding Article as to raw silk other than the standard raw silk shall be the amount equal to the ceiling and floor prices of the standard raw silk plus or minus certain allowances calculated in accordance with the provisions of Cabinet Order.

Article 4.　The ceiling and the floor prices of the standard raw silk shall be determined every March (in April or May in cases where it is especially necessary to do so in view of commodity prices and other economic situations) and shall apply from June 1 of the year to May 31 of the next year.

Article 5.　The ceiling and the floor prices of the standard raw silk may be revised, if it is especially necessary to do so, in cases where a remarkable change has been brought about in commodity prices or other economic situations or where there is a probability that such change might arise.

Article 6.　In cases where the Minister of Agriculture and Forestry has determined or revised the ceiling and the floor prices of the standard raw silk in accordance with the provision of Article 4 or 5, he must notify the same without delay.

Article 7.　The raw silk to be purchased by the Government in accordance with the provision of Article 2 shall be restricted to raw silk that has been determined to be the raw silk with the kind, size and quality designated by Ministerial Ordinance as the result of the tests based on the provision of Article 16 paragraph 1 of the Raw Silk Industry Law (Law No.57 of 1945).

Article 8.　The Government may not accept an application for purchases or sales provided for in Article 2 in cases where it falls under one of the following items:

Article 9.　In cases where it is especially necessary to do so for securing the export of raw silk (including the processed articles of raw silk), the Government may, when it sells raw silk in accordance with the provision of Article 2, attach a condition that the same raw silk (including the processed articles thereof) shall be exported or other necessary conditions.

Article 10.　The Government may, in cases where there is abnormal advance of raw silk price or marked danger thereof owing to cornering and other acts for purposes of unfair profits, if it deems it necessary for preventing the abnormal advance, prohibit by Cabinet Order contracts, or payments or receipts of the equivalent, at a price exceeding a certain fixed price (hereinafter referred to as "prohibition price" ) in regard to the transactions of the raw silk as provided for in Article 7.

2　The prohibition price shall be, as to the standard raw silk, the amount not less than the ceiling price thereof, and as to the other raw silk, the amount equal to the prohibition price of the standard raw silk plus or minus certain allowances provided for by Cabinet Order.

Article 11.　The Government shall, in cases where it deems that the abnormal decline in cocoon prices cannot be prevented even by the purchases of raw silk under the provision of Article 2, take necessary measures to prevent the abnormal decline in the cocoon prices.

Article 12.　The Government may store, process, sell for clearance or sell for new uses or markets the raw silk in possession of it.

2　The sales price mentioned in the preceding paragraph shall be determined by the Minister of Agriculture and Forestry on the basis of the current price.

Article 13.　A person who has a place of business within the boundaries of the city of Yokohama, Kobe or Osaka and is engaged in raw silk transactions as an intermediary or an agency (hereinafter referred to as "raw silk dealer" ) must, in cases where he has sold, or intermediated the sales of, raw silk the delivery of which is made within the abovementioned boundaries based on a consignment from a person who has been licensed in accordance with the provision of Article 2 of the Raw Silk Reeling Industry Law (Law No.29 of 1932)(hereinafter referred to as "raw silk reeler" ), or in cases where he has purchased raw silk the delivery of which is made within the above boundaries from a raw silk reeler who has not a place of business within the boundaries (excluding the cases where he has purchased through an intermediary or an agency of other raw silk dealer), submit a report on the following matters to the Minister of Agriculture and Forestry:

2　In cases where a raw silk reeler who has a place of business within the boundaries provided for in the preceding paragraph has sold raw silk the delivery of which is made within the above boundaries (excluding the cases where he has sold through an intermediary or an agency of a raw silk dealer), he must submit a report on the matter mentioned in each item of the preceding paragraph to the Minister of Agriculture and Forestry.

3　The provisions of the preceding two paragraphs shall not apply in cases where the sales or the purchases are made as transactions in a commodity exchange that has been established on the basis of the Commodity Exchange Law (Law No.239 of 1950).

4　The report mentioned in paragraph 1 or 2 must be submitted by the noon of the next day of the day mentioned below (when it falls on a public holiday or a Sunday, the day after it):

Article 14.　In cases where it is necessary to do so for making the survey of the production costs of cocoons and raw silk, the demand and supply situation and other necessary matters in regard to the stabilization of cocoon and raw silk prices, the Minister of Agriculture and Forestry may, is accordance with the provisions of Ministerial Ordinance, make a person who is engaged in the production or transaction of cocoons or raw silk or who is an intermediary or an agency of the transaction, submit a report on necessary matters.

2　The Minister of Agriculture and Forestry may, in cases where it is necessary to do so for making the survey of the production cost of raw silk, make his officer enter a raw silk reeler's place of business, storehouse, etc. and inspect books and other subjects related to the business operations.

3　An officer who enters and inspects in accordance with the provision of the preceding paragraph, must carry a certificate identifying his status and, in cases where he is demanded to shows it by an interested person, must present it for identification.

4　The power of entrance and inspection under the provision of paragraph 2 must not be construed to be permitted for a criminal investigation.

Article 15.　The Cocoon and Raw Silk Price Stabilization Council (hereinafter referred to as "the Council" ) shall be established in the Ministry of Agriculture and Forestry.

2　The Council shall deliberate on the important matters in regard to the stabilization of cocoon and raw silk prices in answer to the consultations of the Minister of Agriculture and Forestry.

3　The Council may submit an opinion on the important matters in regard to the stabilization of cocoon and raw silk prices to the administrative agencies concerned.

Article 16.　The Council shall comprise the Minister of Agriculture and Forestry and Council members not exceeding 20.

2　The Council members shall be appointed by the Minister of Agriculture and Forestry from among sericulturists and raw silk reelers and other persons of knowledge and experience in regard to the raw silk industry.

3　The Council shall have one chairman and the Minister of Agriculture and Forestry shall fill the position.

4　The chairman shall preside over the activities of the Council and represent it.

5　In cases where the chairman is prevented from discharging his duties, a person designated by him in advance shall act in his place.

6　The Council members shall serve part-time.

7　Necessary matters, other than those provided for in the preceding paragraphs regarding the organization and operation of the Council shall be provided for by Cabinet Order.

Article 17.　A person who has either made a contract, or paid or received the equivalent in violation of the provisions of Cabinet Order based on the provision of Article 10 paragraph 1 shall be subject to a penal servitude not exceeding one year or a fine not exceeding 100,000 yen or both.

2　As to the application of the provision of the preceding paragraph to an act which has been committed by the time of amendment, abolition or invalidation of Cabinet Order under the same paragraph, it shall conform to the regulations that have been in force before the abovementioned amendment, abolition or invalidation.

Article 18.　A person who falls under any of the following items shall be subject to a fine not exceeding 50,000 yen:

Article 19.　In cases where a representative of a juridical person or an agency, an employee or other worker of a juridical person or a person has violated any of the preceding two Articles in regard to the business activities of the juridical person or the person, the violater shall be punished and at the same time, the juridical person or the person shall be subject to a fine based on the respective Article. However, this shall not apply to the juridical person or the person in cases where the juridical person or the person has proved that the same has exerted appropriate notices and supervision over the business operations in order to prevent such violation by the representative, employee or other worker of the juridical person or the person.