GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

APO 500
16 July 1946

AG 311.3 (16 Jul 46) CCS
(SCAPIN-1066)

MEMORANDUM FOR	IMPERIAL JAPANESE GOVERNMENT.
THROUGH	Central Liaison Office, Tokyo.
SUBJECT	Plan for Receiving Payments Due American Carriers for Messages and Radio-telephone Calls Filed by United States Military and Accredited Civilian Personnel for Transmission to or Through the United States Prepaid in Japan.

1. The provisions of this memorandum and inclosures herein are effective 19 July 1946 at 0001 hours. Effective the same date and time there is rescinded the Memorandum for the Imperial Japanese Government, file AG 311.2 (17 May 46) CCS, subject: "Plan for Receiving Payments Due American Carriers for Messages to the United States Prepaid in Japan".
2. Attention of the Ministry of Communications is directed to Memoranda for the Imperial Japanese Government, file AG 600 (8 Oct 45) GD, subject: "Establishment of Expeditionary Force Message Service Between the United States and the Tokyo Area" ; and file AG 311.3 (8 Jan 46) CCS, subject: "Establishment of Telephone Service Between the United States and Tokyo", and also to the letter from the Board of Communications of 28 November 1945 to the Supreme Commander for the Allied Powers and the supplement thereto of 5 January1946.
3. EFM and SCM telegraph messages and radio-telephone calls to or through the United States filed for transmission by United States military and accredited civilian personnel will be prepaid in Supplemental Military Yen Currency Type "A".
4. Within the first 24 hours following receipt of this memorandum and prior to its effective date, the Ministry of Communications will instruct its representatives at all public communications officers in Japan where EFM and SCM messages and radio-telephone calls, described in paragraph 3 above, are filed that effective 19 July 1946 at 0001 hours, the public offices will not accept Japanese yen as prepayment for such messages and radio-telephone calls but must require prepayment in Supplemental Military Yen Currency Type "A"; and that any currency exchange between the senders filing such messages and radio-telephone calls, and the public offices, must be made in Supplemental Military Yen Currency Type "A".
5. Paragraph 2, Memorandum for Imperial Japanese Government, file AG 123.7 (4 July 46) FD, subject: "Authorization to Use Supplemental Military Yen Currency Type "A"", is hereby amended to authorize the withholding of fifty thousand (50,000) Supplemental Military Yen Currency Type "A" by the public offices of the Ministry of Communications for change-making purposes, in amounts allocated to each public office as shown on Inclosure 1. This amount authorized for change-making purposes will be withheld from the Ministry of Communications' share of the revenue derived from EFM and SCM messages and radio-telephone calls, described in paragraph 3 above, and will not be withheld from the share due the American carriers. The amount authorized for change-making purposes for each public office (as shown in Inclosure 1) will be withheld from Supplemental Military Yen Currency Type "A" collected at each public office for such prepaid messages and radio-telephone calls. Until the amount authorized for change-making purposes is thus obtained, the senders of such messages and radio-telephone calls must pay the public offices the exact amount of the charges in Supplemental Military Yen Currency Type "A". Each public office where such messages and radio-telephone calls are filed will never have on hand an amount of Supplemental Military Yen Currency Type "A" in excess of the collections made since the last forwarding of collections to the Treasury of the Ministry of Communications plus the amount authorized for change-making purposes. The amount of Supplemental Military Yen Currency Type "A" authorized to be in the possession of any public office will be shown by that office's accounting records which will be open for inspection at all times by Eighth Army representatives. The amount of Supplemental Military Yen Currency Type "A" on hand at any time will not be less than the amount authorized for change-making purposes at any public office. The amount withheld for change-making purposes at any public office, and the number of public offices shown on Inclosure 1, will neither be increased nor decreased without the approval of General Headquarters, Supreme Commander for the Allied Powers. By pre-arrangement, large denominations of Supplemental Military Yen Currency Type "A" may be exchanged by public offices of the Ministry of Communications with the nearest United States Finance Office or Post Exchange for small denominations so that a proper balance in denominations will be available to facilitate change-making.
6. The Ministry of Communications will deposit on 25 July 1946 with the "Transfer Agent for Telephone and Telegraph Message Funds" the amount of Japanese yen that is due each American carrier as its share of the revenue collected for the transmission of EFM and SCM messages and radio-telephone calls, described in paragraph 3, for the period 1 July 1946 to 18 July 1946. No Japanese yen may be deposited for payment to the American carriers subsequent to 25 July 1946, unless approved by General Headquarters, Supreme Commander for the Allied Powers. The deposit to be made on 25 July 1946 will consist only of Japanese yen. This deposit will be accompanied by five (5) copies of a preliminary statement showing the amount of Japanese yen due each American carrier for the period 1 July 1946 to 18 July 1946 inclusive, or as a result of adjustment made for previous periods. This preliminary statement will include the statement set forth in Inclosure 2.
7. The Ministry of Communications will deposit on 21 August 1946 with the "Transfer Agent for Telephone and Telegraph Message Funds" the total amount of Supplemental Military Yen Currency Type "A" that has been received for the period 19 July 1946 to 31 July 1946 inclusive, less the account of Supplemental Military Yen Currency Type "A" authorized for change-making purposes in paragraph 5 above. The Ministry of Communications is further instructed to deposit thereafter at semi-monthly intervals with the "Transfer Agent for Telephone and Telegraph Message Funds" within twenty-one (21) days after the close of a semi-monthly period the total amount of Supplemental Military Yen Currency Type "A" that has been collected at its public offices, less the total amount of Supplemental Military Yen Currency Type "A" authorized for change-making purposes. The deposit to be made on 21 August 1946 and all subsequent semi-monthly deposits will be accompanied by five (5) copies of a preliminary statement showing the amount of Supplemental Military Yen Currency Type "A" due each American carrier for the period involved or as a result of adjustment made for previous periods. This preliminary statement will include the statement set forth in Inclosure 3.
8. At the time the Ministry of Communications makes a semi-monthly deposit of Supplemental Military Yen Currency Type "A" with the "Transfer Agent for Telephone and Telegraph Message Funds" that agent will arrange with the United States Finance Officer, or such other agency as may be designated by General Headquarters, Supreme Commander for the Allied Powers, to convert the Ministry of Communications' share of Supplemental Military Yen Currency Type "A" to Japanese yen. The "Transfer Agent for Telephone and Telegraph Message Funds" will deliver the Japanese yen to the representative of the Ministry of Communications who will give a receipt for the yen to the "Transfer Agent for Telephone and Telegraph Message Funds".
9. In connection with handling the deposit of 21 August 1946, the Ministry of Communications will give to the "Transfer Agent for Telephone and Telegraph Message Funds" a receipt as set forth in Inclosure 4.
10. In connection with handling the deposit of 5 September 1946, and subsequent deposits, the Ministry of Communications will give to the "Transfer Agent for Telephone and Telegraph Message Funds" a receipt as set forth in Inclosure 5.
11. The deposits referred to in paragraphs 9 and 10 above will contain less than the full amount of the Ministry of Communications' share of Supplemental Military Yen Currency Type "A" collected for radio-telephone calls to or through the United States, because of advance prepayments made by filers of radio-telephone calls prior to 19 July 1946, in Japanese yen. The statements accompanying these deposits will show clearly the accounting details of the payments made prior to 19 July 1946 for calls which were completed after 19 July 1946.
12. The "Transfer Agent for Telephone and Telegraph Message Funds" will acknowledge, over his signature, receipt of the funds and the accompanying preliminary statement by writing the word "RECEIVED" and date of receipt on one (1) copy of the statement and will return it to the representative of the Ministry of Communications who deposited the funds.
13. Final statements will be submitted monthly showing payments made and adjustments, if any. Each American carrier will prepare a similar statement which, when received by the "Transfer Agent for Telephone and Telegraph Message Funds", will be forwarded to the Ministry of Communications.
14. All communications relative to fiscal on accounting matters will be transmitted through the "Transfer Agent for Telephone and Telegraph Message Funds". All matters pertaining to basic rates and underlying policies will, as heretofore, be directed to the Civil Communications Section, General Headquarters, Supreme Commander for the Allied Powers.
15. The Ministry of Communications will not permit Supplemental Military Yen Currency Type "A" received by its public offices for prepaid EFM and SCM messages and radio-telephone calls, as described in paragraph 3, to be turned over to any banking agency or any individual, until after this currency has been received by the Treasury of the Ministry of Communications. Tokyo To, Azabuku, Iigura, Rokuchome. The Treasury of the Ministry of Communications may, as a temporary measure only, deposit such currency for safekeeping in the Bank of Japan, Tokyo To, Nihonbashi Ku, Muromachi, San-chome, from which it will be withdrawn on settlement days for deposit with the "Transfer Agent for Telephone and Telegraph Message Funds". However, within twenty-four (24) hours after the opening of the Tokyo ▲ranch of the National City Bank of New York the Ministry of Communications will use the National City Bank of New York as its depository for the Supplemental Military Yen Currency Type "A" pending the time this currency is deposited with the "Transfer Agent for Telephone and Telegraph Message Funds", and will not thereafter use the Bank of Japan as a depository for Supplemental Military Yen Currency Type "A".
16. It is directed that within three (3) days after the receipt of this memorandum, a representative of the Ministry of Communications contact the Special Service Officer, Eighth Army, Yokohama, to receive any further directions or instructions necessary to accomplish the purpose of this memorandum.

FOR THE SUPREME COMMANDER:

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

5 Incls:
As indicated above.