SCAPIN-1004: ADDITION OF CERTAIN TEXTILE COMPANIES TO SCHEDULE OF RESTRICTED CONCERNS

GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

APO 500
8 June 1946

AG 004 (8 Jun 46) ESS/AC
(SCAPIN-1004)

MEMORANDUM FOR

IMPERIAL JAPANESE GOVERNMENT.

THROUGH

Central Liaison Office, Tokyo.

SUBJECT

Addition of Certain Textile Companies to Schedule of Restricted Concerns.

1. Reference is made to the following Memoranda for the Imperial Japanese Government from General Headquarters, Supreme Commander for the Allied Powers:
a. AG 319.1 (22 Oct 45) ESS/IE (SCAPIN-177), subject: “Reports to be Made by Certain Business Firms.”
b. AG 004 (31 Oct 45) ESS (SCAPIN-215), subject: “Sale or Transfer of Certain Business Firms.”
c. AG 004 (8 Dec 45) ESS/AC (SCAPIN-403), subject: “Establishment of a Schedule of Restricted Concerns.”
d. AG 300.8 (8 Dec 45) ESS/AC (SCAPIN-408), subject: “Regulations Affecting Restricted Concerns.”
e. AG 123 (15 Jan 46) ESS/FI (SCAPIN-599), subject: “Restriction on Dividend Payments.”
f. AG 319.1 (19 Jan 46) ESS/AC (SCAPIN-625), subject.: “Reports to be Made by Certain Business Firms.”
g. AG 150 (23 Feb 46) ESS/AC (SCAPIN-767), subject: “War Damage and Government Indemnity Claims of Companies on the Schedule of Restricted Concerns.”
2. The Oriental Cotton Spinning Company, Ltd.; Daiken Industrial Company, Ltd.; Kanegafuchi Industrial Company, Ltd.; Dai Nippon Cotton Spinning Company, Ltd.; Katakura Industrial Company, Ltd.; Gunze Industrial Company, Ltd.; Naigai Cotton Company, Ltd.; Fuji Gasu Spinning Company, Ltd.; Shikishima Spinning Company, Ltd.; Teikoku Artificial Silk Company, Ltd.; Nisshin Cotton Spinning Company, Ltd.; Kurashiki Industrial Company, Ltd.; and Japan Woolen Cloth Company, Ltd., and the subsidiaries of each as listed on inclosure hereto, are hereby added to the Schedule of Restricted Concerns referred to in subparagraph 1c, above.
3. The Imperial Japanese Government will take immediate action to assure that the concerns listed in paragraph 2, above, and the subsidiaries of each as listed on inclosure hereto, shall comply with the provisions of and make reports required by reference Memoranda listed in paragraph 1, above. Wherever references is made in inclosure 1 and inclosure 2 to Memoraudum referred to in subparagraph 1a, above, to the year 1944, it shall be amended to read 1945.

FOR THE SUPREME COMMANDER:

JOHN B. COOLEY,
Colonel, AGD,
Adjutant General.

1 Incl: List of Subsidiaries of Certain Textile Companies Added to Schedule of Restricted Concerns.

1. Subsidiaries of Oriental Cotton Spinning Company, Ltd.:
a. In Japan
Asahi Wool Spinning Company, Ltd.
Ashimori Cotton Rope Manufacturing Company, Ltd.
Chosen Special Alloy Company, Ltd.
Daien Chemical Industrial Company, Ltd.
Daiwa Machine Tool Manufacturing Company, Ltd.
Gosho Company, Ltd.
Haromachi Cotton Weaving Company, Ltd.
Hiyoshi Aircraft Industrial Company, Ltd.
Homare Industrial Company, Ltd.
Imaza Woolen Company, Ltd.
Kanjyo Iron Work Company, Ltd.
Koa Business Company, Ltd.
Kobe Motor Manufacturing Company, Ltd.
Kyodo Woolen Company, Ltd.
Miyuki Woolen Company, Ltd.
Nakabayashi Cotton Weaving Company, Ltd.
Nakajima Electric Motor Company, Ltd.
Oji Cotton Weaving Company, Ltd.
Oriental Aircraft Industrial Company, Ltd.
Oriental Cloth Company, Ltd.
Oriental Dyeing Company, Ltd.
Oriental Iron-rope Company, Ltd.
Oriental Iron-work Company, Ltd.
Oriental Machine-sewing Company, Ltd.
Oriental Rubber-treatment Company, Ltd.
Oriental Sulphur Industrial Company, Ltd.
Oriental Synthetic Goods Manufacturing Company, Ltd.
Osaka Woolen Company, Ltd.
Osaka Wool Industry Company, Ltd.
Rising Sun Rayon Company, Ltd.
Rokyo Pump Manufacturing Company, Ltd.
Shinano Special Plank Company, Ltd.
Shinko Industrial Company, Ltd.
Shoyo Carbon Company, Ltd.
South Sea Bag Manufacturing Company, Ltd.
South Sea Production Company, Ltd.
Tanyo Coal Company, Ltd.
Toa Chemical Industrial Company, Ltd.
Toshin Wool Spinning Company, Ltd.
Yamahatsu Industrial Company, Ltd.
Yutani Iron Work Company, Ltd.
b. Outside Japan
Chiong-Da Cotton Weaving Company, Ltd.
Daiko Repairing Company, Ltd.
Great Manchuria Mining Company, Ltd.
Hoho Milling Company, Ltd.
Jotuong Tobacco Manufacturing Company, Ltd.
Manchuria Building Material Supply Company, Ltd.
Manchuria Central Woolen Company, Ltd.
Manchuria Glue Industrial Company, Ltd.
Manchuria Leather Company, Ltd.
Manchuria-Oriental Cotton Spinning Company, Ltd.
Oriental Chemical Industrial Company, Ltd.
Oriental Grain Industrial Company, Ltd.
Oriental Graphite Mining Company, Ltd.
Oriental Tire Company, Ltd.
Oriental Tobacco Manufacturing Company, Ltd.
Shanghai Textile Industrial Company, Ltd.
Shi-Fuong Mining Company, Ltd.
South Sea Electric Power Company, Ltd.
South Sea Production Company, Ltd.
Tang-Shian Fua-Shin Cotton Weaving Company, Ltd.
Tuongya Aircraft Industrial Company, Ltd.
Wei-Huoi Cotton Weaving Company, Ltd.
Yufuong Cotton Spinning Company, Ltd.
2. Subsidiaries of Daiken Industrial Company, Ltd.
a. In Japan
Aichi Industrial Machinery Company, Ltd.
Asahi Special Steel Wire Manufacturing Company, Ltd.
Chosen Kureha Cotton Spinning Company, Ltd.
Chosen Weaving Company, Ltd.
Daido Dyeing Factory, Ltd.
Daiken Clothing Manufacturing Company, Ltd.
Daiken Lumber Industry, Ltd.
Daisen Industrial Company, Ltd.
Far Eastern Mining Company, Ltd.
Formosa Cotton Spinning Company, Ltd.
Itoh Building Company, Ltd.
Japan-Chinese Trading Company, Ltd.
Japan India Trading Company, Ltd.
Kamiki and Company, Ltd.
Koa Gum Industry, Ltd.
Koa Steel Works, Ltd.
Kureha Chemical Industry Company, Ltd
Kureha Gum Industry Company, Ltd.
Kureha Industrial Company, Ltd.
Kyoekisha Company, Ltd.
Nishiki Trading Company, Ltd.
Osaka Heat Hardening Industry, Ltd.
Osaka Manufacturing Company, Ltd.
Sakae Industrial Company, Ltd.
Sanko Company, Ltd.
Sanko South Sea Developing Industry, Ltd.
Sanko Steel Wire Products Company, Ltd.
Tatsumi Industrial Company, Ltd.
Toa Steel Manufacturing Company, Ltd.
Yashu Fibre Industry Company, Ltd.
b. Outside Japan
Asaka Iron Works Company, Ltd.
Bokkai Chemical Industry, Ltd.
Continental Fuel Machine Manufacturing Company, Ltd.
Daifuku Koshi
Furukawa Plantation Company, Ltd.
Koka Dyeing Factory, Ltd.
Konan Gum Industrial Company, Ltd.
Kotobuki Koshi
Manchurian Flax-net Manufacturing Company, Ltd.
Manchurian Textile Manufacturing Company, Ltd.
Manchurian Woolen Factory, Ltd.
Ryuka Shipyard, Ltd.
Taiya Iron Works, Ltd.
Toa Gum Industry, Ltd.
Tohendo Forestry and Chemical Industry, Ltd.
Totai Industrial Company, Ltd.
Toyo Automobile Manufacturing Company, Ltd.
3. Subsidiaries of Kanegafuchi Industrial Company, Ltd.:
a. In Japan
Kanegafuchi Engineering Company, Ltd.
Kanegafuchi Oil and Fat Manufacturing Company, Ltd.
Kanegafuchi Radio Industry, Ltd.
Kanegafuchi Sea-Water Utilization Company, Ltd.
Kanegafuchi Textile Sales Company, Ltd.
Kanegafuchi West Korean Heavy Industry Company, Ltd.
Korea Electrometallurgical Company, Ltd.
Showa Industrial Products Company, Ltd.
b. Outside Japan
Kanegafuchi Kunda Business Undertaking Company, Ltd.
Konan Paper Manufacturing Company, Ltd.
Kotoku Dyeing and Printing Company, Ltd.
Kotoku Mining Company, Ltd.
Kotoku Wool Spinning Company, Ltd.
Manshu Graphite Company, Ltd.
Manshu Kanegafuchi Paper Manufacturing Company, Ltd.
4. Subsidiaries of Dai Nippon Cotton Spinning Company, Ltd.:
a. In Japan
Chosen Chemical Industry, Ltd.
Dainichi Industry, Ltd.
Gofuku Commercial Company, Ltd.
Ibigawa Electric Industry, Ltd.
Iga Lignite Mining Company, Ltd.
Matsui Iron Works, Ltd.
Osaka Dyeing Company, Ltd.
Otsu Rubber Industry, Ltd.
Owada Carbon Industry, Ltd.
Owada Industry, Ltd.
Shinkawa Woolen Weaving Company, Ltd.
Special Light Metal Alloy Works, Ltd.
Suzumasa Woolen Weaving Company, Ltd.
Takano Precision Industry, Ltd.
Toa Chemical Industry, Ltd.
Toa Metal Industry, Ltd.
b. Outside Japan
China Beer Brewery Company, Ltd.
Hong Kong Cotton Spinning Company, Ltd.
Japan-Thai Textile Industry, Ltd.
Keizen Coal Mining Company, Ltd.
Koa Insecticide Manufacturing Company, Ltd.
Konan Machine Works, Ltd.
North China Shinkawa Cotton Spinning Company, Ltd.
North Korea Carbon Bisulphide Manufacturing Company, Ltd.
Shinkawa Cotton Spinning Company, Ltd.
Taiko Commercial Company, Ltd.
Tensho Paper Manufacturing Company, Ltd.
5. Subsidiaries of Katakura Industrial Company, Ltd.:
a. In Japan
Hokusei Iron Mine Ltd.
Kachu Silk Company, Ltd.
Katakura Chemical Industry, Ltd.
Kyushu Plywood Company, Ltd.
Nippon Machine Industry, Ltd.
Nippon Silk Yarn Manufacturing Company, Ltd.
Nitto Spinning and Industrial Company, Ltd.
Showa Silk Hosiery Company, Ltd.
Suwa Aircraft Industry Company, Ltd.
Taiyo Plywood Company, Ltd.
Toha Nutritional Chemical Industry Company, Ltd.
b. Outside Japan
Manshu Acetic Acid Company, Ltd.
Nikka Industry Company, Ltd.
6. Subsidiaries of Gunze Industrial Company, Ltd.:
a. In Japan
Aizu Veneer Manufacturing Company, Ltd.
Gunze Industry, Ltd.
Gunze Textile Sales Company, Ltd.
Kasumi Provision Manufacturing Company, Ltd.
Nakano Bolting Silk Manufacturing Company, Ltd.
Nitto Steel Manufacturing Company, Ltd.
Ohmi Silk Spinning Company, Ltd.
b. Outside Japan
Chosen Industry, Ltd.
Chosen Knitting and Weaving Company, Ltd.
Jinsin Chemical Industrial Company, Ltd.
7. Subsidiaries of Naigai Cotton Company, Ltd.:
a. In Japan
Daido Industry Company, Ltd.
Japan Cotton Industry, Ltd.
Japan Water Pump Manufacturing Company, Ltd.
Kobe Electric Company, Ltd.
Manshu Naigai Cotton Spinning Company, Ltd.
b. Outside Japan
Continental Iron Works, Ltd.
Daito Artificial Resin Industry, Ltd.
Manchuko Home and Foreign Cotton Dyeing Company, Ltd.
Nansho Chemical Industry, Ltd.
Shanghai Shoe Manufacturing Company, Ltd.
Shanghai Surgical Instruments Manufacturing Company, Ltd.
Shinko Company, Ltd.
8. Subsidiaries of Fuji Gasu Spinning Company, Ltd.:
a. In Japan
Central Blanket Manufacturing Company, Ltd.
Fuji Arms Company, Ltd.
Kyokko Silk Reeling Company, Ltd.
Kyowa Heavy Industry Company, Ltd.
Teikoku Machine Cotton Thread Company, Ltd.
Yanai Chemical Industry Company, Ltd.
Yanai Industry Company, Ltd.
b. Outside Japan
Hankyu Sewing Company, Ltd.
Iida and Company
Manshu Spinning Company, Ltd.
Sainan Dyeing Company, Ltd.
Sainan Sewing Company, Ltd.
Toa Sewing Company, Ltd.
9. Subsidiaries of Shikishima Spinning Company, Ltd.:
a. In Japan
Asahi Dyeing Company, Ltd.
Hanwa Dyeing Company, Ltd.
Haya Shifuku Sewing Company, Ltd.
Japan Electric Instrument Manufacturing Company, Ltd.
Konishi Shoten and Company, Ltd.
Kotobuki Company, Ltd.
Kubota Industry, Ltd.
Nichiman Industry, Ltd.
Omi Aircraft Industry, Ltd.
Osame Chemical Machinery Company, Ltd.
Shikishima Airplane Manufacturing Company, Ltd.
Teikoku Physical and Chemical Company, Ltd.
Tokai Dyeing Industrial Company, Ltd.
Tokushu Airplane Manufacturing Company, Ltd.
Yasukawa Air Electric Apparatus Company, Ltd.
b. Outside Japan
Formosa Fibre Industrial Company, Ltd.
Manchuria Spinning and Weaving Company, Ltd.
Soki Spinning and Weaving Company, Ltd.
10. Subsidiaries of Teikoku Artificial Silk Company, Ltd.:
a. In Japan
Mukojima Nishi Shipbuilding Company, Ltd.
Nippon Metal Company, Ltd.
Teijin Precision Machinery Company, Ltd.
b. Outside Japan
Formosa Organic Compounds Company, Ltd.
11. Subsidiaries of Nisshin Cotton Spinning Company, Ltd.:
a. In Japan
Enshu Machinery Company, Ltd.
Kokusaku Pulp Company, Ltd.
Nisshin Cloth Dyeing Company, Ltd.
Nippon Printing Cloth Company, Ltd.
Takizawa Fibre Company, Ltd.
Teikoku Heat Treatment Company, Ltd.
Towa Commercial Business Company, Ltd.
b. Outside Japan
Fuji Cloth Dyeing Company, Ltd.
Kako Iron Works, Ltd.
Showa Machine Tool Company, Ltd.
Towa Hemp Goods Company, Ltd.
12. Subsidiaries of Kurashiki Industrial Company, Ltd.:
a. In Japan
Aichi Weaving Company, Ltd.
Dai Nippon Woolen Dyeing and Finishing Company, Ltd.
Fujinagata Shipbuilding Works, Ltd.
Harima Steel Works, Ltd.
Kinjo Rock-drill Manufacturing Company, Ltd.
Kurashiki Airplane Company, Ltd.
Kurashiki Machine Industrial Company, Ltd.
Kurashiki Mining Company, Ltd.
Kurashiki Rayon and Staple Fibre Manufacturing Company, Ltd.
Musashi Machine Manufacturing Company, Ltd.
Osaka Machine Manufacturing Works, Ltd.
Osaka Special Steel Manufacturing Company, Ltd.
b. Outside Japan
Manchuria-Mongolian Natural Products Cultivating Company, Ltd.
Sino-Japanese Spinning Company, Ltd.
13. Subsidiaries of Japan Woolen Cloth Company, Ltd.:
a. In Japan
East Asia Pottery Industry Company, Ltd.
Japan Mineral Industry Company, Ltd.
Japan Wool Industry Company, Ltd.
Manchurian Synthetic Plate Manufacturing Company, Ltd.
Nisshin Machine Manufacturing Company, Ltd.
Nitto Machine Manufacturing Company, Ltd.
Osaka Nikke Company, Ltd.
Sankin Industrial Enterprise Company, Ltd.
Taisei Woolen and Worsted Textile Manufacturing Company, Ltd.
Tokyo Nichimo Company, Ltd.
Tokyo Nikke Company, Ltd.
b. Outside Japan
Kawanishi Machine Manufacturing Company. Ltd.
New Industrial Enterprise Company, Ltd.
Nichimo Hosiery Manufacturing Company, Ltd.
Nikke Company, Ltd.
Oriental Pulp Company, Ltd.

MEMO FOR RECORD: (SCAPIN - 1004)
WFM/JMcIH/RAM/las
3 June 1946
1. Pursuant to the policy set forth in JCS Directive 1380/15, dated 3 November 1945, investigations are being made of concerns which are not on the Schedule of Restricted Concerns, inclosure to SCAP Memorandum AG 004 (8 Dec 45) ESS/AC (SCAPIN-403), subject: "Establishment of a Schedule of Restricted Concerns."
2. An investigation of the textile firms and their subsidiaries, listed on attached Table A. has disclosed the following information relative to the organization and control in this industry:
a. The giant spinning-weaving firms, by use of control associations, were able to completely dominate the textile industry. All aspects of production and sales were directed by control organizations which are dominated by the companies listed herein.
b. Japanese textile production for the year 1940 was valued at ¥4,650,000,000. Production of textiles during that year by thirteen (13) major firms (exclusive of the output of their subsidiaries) amounted to ¥1,850,000,000, or forty (40) percent of the total production of Japan.
c. Direct control over 264 subsidiary companies is held by the thirteen (13) firms mentioned in subparagraph 2b, above. The subsidiaries are principally textile manufacturers, but also include many concerns totally unrelated to this field. Acquisition of a number of minor firms was made as a result of a wartime directive of the Japanese Government.
d. In 1943. with the increasing demand for use of every industrial resource, the majority of textile plants converted their production to war materials.
3. On the basis of the information disclosed in paragraph 2, above, and pursuant to JCS Directive referred to in paragraph 1, above, the Oriental Cotton Spinning Company, Ltd.,: Daiken Industrial Company, Ltd.; Kanegafuchi Industrial Company, Ltd.; Dainippon Cotton Spinning Company, Ltd.; Katakura Industrial Company, Ltd.; Gunze Industrial Company, Ltd.; Naigai Cotton Company, Ltd.; Fuji Gasu Spinning Company, Ltd.; Shikishima Spinning Company, Ltd.; Teikoku Artificial Silk Company, Ltd.; Nisshin Cotton Spinning Company, Ltd.; Kurashiki Industrial Company, Ltd,; Japan Woolen Cloth Company, Ltd.; and the subsidiaries of each listed on the attached Table A should be added to the Schedule of Restricted Concerns referred to in paragraph 1, above.