SCAPIN-1133: REPARATIONS SELECTIONS WITHIN THE MACHINE TOOL INDUSTRY
GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS
APO 500
13 August 1946
AG 387.6
(13 Aug 46)
ESS/IN
(SCAPIN-1133)
| MEMORANDUM FOR | IMPERIAL JAPANESE GOVERNMENT. |
|---|---|
| THROUGH | Central Liaison Office, Tokyo. |
| Subject | Reparations Selections within the Machine Tool Industry. |
1. The Imperial Japanese Government is notified that all machine tool manufacturing plants on the attached list are hereby taken into custody and control of the Supreme Commander for the Allied Powers.
2. This list designates plants subject to removal under the interim reparations program. These plants will be shut down, or will be permitted to continue operation to complete machine tools under current manufacture or in the production of consumer goods, in accordance with instructions from the Commanding General, Eighth United States Army. In all cases whether or not operations are permitted to continue in the listed plants, such measures will be taken as are necessary to insure proper protection, maintenance and safeguarding of equipment.
3. There will be made available to the Commanding General, Eighth United States Army, all personnel, equipment and supplies deemed necessary by him for the establishment of proper custody, control, and protective maintenance.
4. Within seventy-two (72) hours of the receipt of this memorandum the Imperial Japanese Government will nave qualified representatives report to the Commanding General, Eighth United States Army, to receive detailed instructions to accomplish the purpose of this memorandum.
5. Provisions of this memorandum shall not be construed to preclude immediate shut-down and removal of Specific plants that may be designated by subsequent memoranda.
FOR THE SUPREME COMMANDER:
JOHN B. COOLEY,
Colonel, AGD,
Adjutant General.
1 Incl:
List of Machine Tool Factories
GENERAL HEADQUARTERS SUPREME COMMANDER FOR THE ALLIED POWERS
APO 500
13 August 1946
Information of General Application pertaining to Directive Number (SCAPIN-1133) file AG 387. 6 (13 Aug 46) ESS/IN dtd 13 Aug 46, subject: "Reparations Selections within the Machine Tool Industry."
1. With reference to memorandum Number (SCAPIN-1133), from the Supreme Commander for the Allied Powers to the Imperial Japanese Government, the following is published for the information of all concerned.
2. The purpose in issuing the attached letter to the Imperial Japanese Government and accompanying letter to the Commanding General, Eighth United States Army is to insure availability for interim reparations removals of listed facilities in the best possible condition.
3. The items within listed factories and installations which may be considered suitable for reparations are such things as machine tools, production machinery, heat treating equipment, furnaces, cranes and conveyors, precision testing and research equipment and power equipment. Expendable parts such as special dies, jigs and fixtures, bolts, nuts and small parts, etc., if available and when practicable, should remain with the factory. No definite classification can be made but the use of good judgement in preserving for reparations removal those items suitable for the purpose and in allowing the Japanese to use that portion of the remainder which will contribute to needed civilian production is the end in view.
4. It is not contemplated that buildings which are part of factories taken under custody and control will be used for reparations or destroyed except in special cases. Such cases may be those where part of the building frame forms a track for overhead cranes and the steel building skeleton can be easily dismantled for resetting. If any building, other than those likely to be dismantled, is requested by the Japanese and it can be used by them without jeopardizing the primary mission of safeguarding reparations materials it may be released to them.
5. This directive stops all manufacture of new machine tools in listed plants, though permitting completion of units for which major component parts already are manufactured.
6. The primary reason for allowing continued production in any of the listed factories is to meet the needs of the occupation forces and essential civilian economy. Insofar as possible all production in these factories should be arranged so that shutdown, when necessary for reparations removal, will have the minimum disruptive effect on the overall civilian economy.
7. It is contemplated that the Japanese will furnish personnel and material required by you; that custodial personnel selected will be individuals previously employed in each factory who are familiar with its equipment and requirements for maintenance.
8. It is expected that the Japanese will perform proper maintenance of equipment to preserve it in good condition. Such maintenance is to include sufficient oiling and greasing, with necessary materials to be furnished by the Japanese Government, when not available.
9. It is expected that a system will be established for spot-checking each installation periodically. When corrective action can be accomplished locally by conference it should be done. In cases of wilful violation or neglect, immediate report should be made through military charnels.
10. A letter of command instructions pertaining to the execution of the subject memorandum follows through command channels.
/s/ A. J. Rehe
for /t/ R. G. HERSEY,
Lt. Col., AGD,
Asst. Adj. Gen.
Distribution same as (SCAPIN-1133) less Imperial Japanese Government.
MEMO FOR RECORD: (SCAPIN-1133)
JZR/CDR/frg
8 August 1946
1. WARCOS radio W 89351, 28 May 46, directs SCAP to designate for reparations, machine tool manufacturing plants above a balanced type-size aggregate capacity of 27, 000 units per year. This corresponds to the Paulay interim program which recommended that 50% of Japan's machine tools making capacity be subject to reparation.
2. a. At its peak capacity in 1943 the machine tool industry comprised 412 factories whose total output was 60,000 units valued at 促602. 193,000. Air raid damage, dispersion of plants and other factors effective in 1944 and 1945 reduced capacity by an estimated 10% to 54,000 units. Past and current efforts of machine tool manufacturers to disassociate themselves with this industry for fear of reparations have been widespread.
b. The attached list of plants to be taken for reparations primarily represents those companies most closely associated with the munitions industry, includes the larger Zaibatsu plants, which were constructed after 1937, and leaves in Japan small old-line companies who can contribute the most to rehabilitation of Japanese industry on a reduced scale.
c. Leaving a capacity of 27,000 units in Japan provides more than adequate facilities to supply future demand for machine tools. The highest estimate of expected future demand submitted to this Division specified a capacity of 23, 000 units, while other Japanese sources have stated that a maximum of 12,000 unit capacity is sufficient for her future domestic needs. Therefore, this directive stops all manufacture of new machine tools in listed plants, though permitting completion of units for which major component parts already are manufactured. Further, it grants authority to Eighth United States Army to permit these plants to continue operations if they are producing items necessary for current civilian needs.
3. This directive to the IJG, Command letter to Eighth United States Army, and letter of general application will accomplish the custody and control of 94 machine tool manufacturing plants which will be held for reparations.
4. Concurrence: G-4 (Comdr. Ryan).
