MEMO FOR RECORD: (SCAPIN - 1031)
ESS/IN GTW/CDH/mdb
1. The Nippon Fertilizer Company had engaged in extensive work converting the 2nd Naval Fuel Depot at Yokkaichi, affiliated plant at Kogetsucho, Nagoya, and the 3rd Naval Fuel Depot at Tokuyama to nitrogenous fertilizer production, in accordance with Memo to IJG from GHQ, SCAP, AG 091.22 (10 Oct 45) ESS, subject: "Disposal of fecilities belonging to the 2nd and 3rd Naval Fuel Depots for the production of sulphate of ammonia." The plants in question are not on the approved list for conversion to fertilizer production as listed in Memo to IJG from GHQ, SCAP, AG 464.5 (17 May 46) ESS/'IN, SCAPIN 962, subject: "Production, distribution, and use of fertilizers". The 2nd and 3rd Naval Fuel Depots are listed in Memo to IJG from GHQ, SCAP, AG 004 (28 May 46) ESS/IN, SCAPIN 987, subject: "Custody, Control, and Protective Maintenance of Japanese Aircraft Plants, Arsenals, and Laboratories."
2. a. The present memorandum is issued to clarify the effect on the plants concerned of the three memoranda to the IJG cited in paragraph 1, above, and to assure the early use of a small amount of capacity for fertilizer production.
b. The policy concerning conversions of plants to nitrogenous fertilizer production stated in the SCAP Memo of 17 May is to limit such conversions to plants requiring a minimum of effort and material to place them in production. The intent is to prevent diversion of effort and materials into plants which cannot produce appreciable amounts of fertilizer during the next few months, the period of most critical need for the product. The plants discussed in the present memorandum are in this category. For this reason the plants were not included among the approved plants listed in the fertilizer memorandum of 17 May, and in the present memorandum it is clearly stated that:
(1) An earlier authorization for conversion granted by SCAP is rescinded, and
(2) The plants will remain in custody and control as provided in the SCAP Memo of 28 May.
c. One small exception to the above conditions is considered desirable on the basis of recent detailed information concerning the progress of conversion of the 2nd Naval Fuel Depot at Yokkaichi. In one portion of the plant, which will require no critical raw materials to operate, conversion at present is approximately 90 percent complete. Production can commence in August at the rate of 20,000 tons of ammonium sulphate per year. Authorization of this conversion, which applies to one-sixth the possible full capacity of the entire plant, is highly desirable. Authorization of additional conversion remains undesirable because it would not be completed until March, 1947, and operation of the additional capacity would require the use of coal, a material which will be in short supply for many months.
3. By the present Memorandum through C.L.O., IJG is advised as follows:
a. The Nippon Fertilizer Co., Ltd., will be permitted to continue conversion of that portion of the plant which can begin production of ammonium sulphate in August at the rate of 20,000 tons per year. The units which comprise this portion of the plant are specified.
b. The portion of the plant specified as indicated above is placed on the approved list of nitrogenous fertilizer producers, as set forth in Memo for IJG from GHQ, SCAP, AG 464.6 (17 Mar 46) ESS/IN, SCAPIN 962, subject: "Production, Distribution and Use of fertilizers."
c. Authority to convert to nitrogenous fertilizer production, as indicated in Memo to IJG referred to in paragraph 1, above, is rescinded except for that portion of the Yokkaichi plant placed on the approved list.
d. Provisions of the Memo to IJG from GHQ, SCAP, AG 004 (28 May 46) ESS/IN, SCAPIN 987, subject: "Custody, a Control, and Protective Maintenance of Japanese Aircraft Plants, Arsenals and Laboratories," are to be adhered to with respect to all portions of the 2nd and 3rd Naval Fuel Depots.
4. No Concurrence is required.
5. Military surveillance of the plants in question will be conducted in accordance with instructions previously issued in connection with the memoranda referred to above. The present memorandum is an administrative matter and no additional surveillance is required.
G. T. W.