SCAPIN-1058: LIMITATION OF ACTIVITIES OF AND REQUIRING OF REPORTS FROM UBE INDUSTRIAL COMPANY, LTD. (UBE KOSEN K. K.), AND IWAKI CEMENT COMPANY, LTD. (IWAKI SEMENTO K. K.)
GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS
APO 500
10 July 1946
AG 004
(10 Jul 46)
ESS/AC
(SCAPIN - 1058)
| MEMORANDUM FOR | Imperial Japanese Government |
|---|---|
| THROUGH | Central Liaison Office, Tokyo |
| SUBJECT | Limitation of Activities of and Requiring of Reports from Ube Industrial Company, Ltd., (ube Kosen K. K.), and Iwaki Cement Company, Ltd., (iwaki Semento K. K.) |
1. Reference is made to the following Memoranda for the Imperial Japanese Government from General Headquarters, SCAP:
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 Securities 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."
h. AG 248 (24 May 46) ESS/AC (SCAPIN-981), subject: "Payment of Salaries to Executive Officers of Restricted Concerns."
2. The Imperial Japanese Government will take immediate action to assure that Ube Industrial Company, Ltd., and Iwaki Cement Company Ltd., shall comply with the provisions of and make reports required by reference Memoranda listed in paragraph 1, above. Wherever reference is made in inclosure 1 and inclosure 2 to Memorandum referred to in subparagraph la, above, to the year 1944, it shall be amended to read 1945.
3. No requirement of this Memorandum shall be construed as placing the Ube Industrial Company, Ltd., and Iwaki Cement Company, Ltd., on the Schedule of Restricted Concerns referred to in subparagraph 1c, above.
FOR THE SUPREME COMMANDER:
/s/ R. Y. Hersey
for /t/ JOHN B. COOLEY,
Colonel, AGD,
Adjutant General.
MEMO FOR RECORD: (SCAPIN - 1058)
WFM/JMcIH/HGH/gg
27 June 1946
1. Representatives of Toyo Cement Company, Ltd., and Nozawa Asbestos Company, Ltd., have submitted a joint request for assistance in re-acquiring certain facilities which the Government forced them to sell in June 1944. Toyo Cement Company, Ltd., was forced to sell its Kokura Factory to Ube Industrial Company, Ltd., Japan Asbestos Manufacturing Company, Ltd., (now Nozawa Asbestos Industrial Company, Ltd.), was forced to sell its Hikone Factory to Onoda Cement Company, Ltd. These forced sales were accomplished under the Enterprise Arrangement Act of 13 May 1942.
2. It appears unquestionable that the sales referred to above were forced and that the consideration paid was inadequate for the assets transferred. The Cement Control Association along with Kogyo Bank and Kangyo Bank were charged with determining the fair price of the factories to be sold. The Toyo Cement Company, Ltd., was forced to sell its Kokura Factory, which had two (2) kilns, to Ube Industrial Company, Ltd., for ¥7,300,000. (One (l) kiln, however, was later sold to a North China Company at a reported price of ¥7,000,000.) The same was true in the case of Japan Asbestos Manufacturing Company, Ltd., 'selling' its Hikone Factory for ¥2,500,000, when it had a concurrent offer of ¥5,000,000, from Japan Light Metals Company, Ltd. Some action, therefore, should be taken to assist these companies to re-acquire assets transferred because of forced sales.
3. Conclusions:
a. It has been reported authoritatively that some of the companies benefitting from these forced sales and not now listed on the Schedule of Restricted Concerns, namely, Ube Industrial Company, Ltd., and Iwaki Cement Company, Ltd., are cognizant of the application by Toyo Cement Company, Ltd., and Nozawa Asbestos Industrial Company, Ltd., and are taking steps to liquidate the subject assets before they are also restricted.
b. It is not considered desirable to have these companies subject to proposed more stringent action, such as a purge of officers and directors; consequently, the attached Memorandum restricts their activities, requiring that they shall comply with the provisions of pertinent directives and make all reports required of companies on the Schedule of Restricted Concerns.
c. This surveillance procedure will be used until the reports requested have been examined and so that SCAP's activities of investigating the detailed structure of the Japanese industrial economy can be kept at the minimum consonant with the objectives of the Occupation.
4. The interests of USAFIK have been considered. This action does not affect the Korean area.
5. This is considered an administrative matter.
6. Concurrences: Industrial Division, ESS. (Mr. G. T. Walker).
J. McI. H.
