GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

APO 500
24 September 1946

AG 311.3 (24 Sep 46) CCS
(SCAPIN - 1228)

MEMORANDUM FOR	IMPERIAL JAPANESE GOVERNMENT.
THROUGH	Central Liaison Office, Tokyo.
SUBJECT	Revised Plan for Receiving Payments Due American Carriers for Messages and Radiotelephone Calls Filed by United States Military and Accredited Civilian Personnel for Transmission to Or Through the United States, Its Territories and Possessions, Prepaid in Japan.

1. This memorandum is effective 1 October 1946 at 0001 hours. Simultaneously there is rescinded the memorandum for the Imperial Japanese Government, file AG 311.3(16 Jul 46)CCS, (SCAPIN-1066), subject: "Plan for Receiving Payments Due American Carriers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".
2. The attention of the Ministry of Communications is directed to the following memoranda and letters which pertain to messages or radiotelephone calls to or through the United States:
a. Memorandum for the Imperial Japanese Government, file AG600(8 Oct 45)GD, subject: "Establishment of Expeditionary Force Message Service Between the United States and the Tokyo-Yokohama Area".
b. Letter dated 28 November 1945 and supplement thereto dated 5 January 1946 from the Board of Communications to the Supreme Commander for the Allied Powers.
c. Memorandum for the Imperial Japanese Government, AG 676.3 (1 Dec 45)CCS, subject: "Establishment of Sender Composition Message Service Between the United States and the Tokyo Area".
d. Memorandum for the Imperial Japanese Government, AG 311.3 (( Jan 46)CCS, subject: "Establishment of Telephone Service Between the United States and Tokyo".
e. Memorandum for the Imperial Japanese Government, AG311.23 (18 May 46)CCS, subject: "Sender Composition Message Service for Approved Private Companies".
f. Memorandum for the Imperial Japanese Government, AG 311.22(8 Jun 46)CCS, subject: "Inauguration of EFM, SCM, Private, Government and Press Service Between Japan and the Hawaiian Islands".
g. Memorandum for the Imperial Japanese Government, AG311.3(31 Aug 46)OGA, subject: "Inspection of Type 'A' Yen Currency Records Maintained by the Ministry of Communications".
h. Memorandum for the Imperial Japanese Government, AG 311.22(12 Sep 46)CCS, subject: "Amended List Showing Public Offices of the Ministry of Communications by Bureau Areas and Prefectures where Prepaid EFM and SCM Radiotelegraph Messages or Radiotelephone Calls may be Filed for Transmission by United States Military and Accredited Civilian Personnel to or Through the United States, and Indicating the Type of Service Handled and Amounts of Supplemental Military Yen Currency Type 'A' which are specifically Authorized for Change -making Purposes".
3. EFM and SCM messages and radiotelephone calls filed for transmission to or through the United States, its territories and possessions, by United States military and accredited civilian personnel will be prepaid in Military Payment Certificates at rates, per message or per ward, expressed in dollars, except as hereinafter prescribed.
4. At least forty-eight (48)hours prior to 0001 hours 1 October 1946 the Ministry of Communications will issue the following instructions to its representatives at all public communications offices in Japan where EFM and SCM messages and radiotelephone calls, as described in paragraph 3 above, are filed:
a. From 0001 hours 1 October 1946 until 2400 hours 15 October 1946 either Supplemental Military Yen Currency Type "A" or Military Payment Certificates will be accepted interchangeably in prepayment of EFM and SCM messages and radiotelephone calls.
b. Effective 0001 hours 16 October 1946, and thereafter until further notice, only Military Payment Certificates will be accepted in prepayment of EFM and SCM messages and radiotelephone calls.
c. Every effort will be made to collect Military Payment Certificates, rather than Supplemental Military Yen Currency Type "A", during the period 1 October to 15 October 1946, in order that each office may acquire the new currency for change-making purposes, as hereinafter prescribed.
d. As soon after the close of business on 15 October 1946 as the Ministry of Communications will direct, each public office concerned will forward to the Treasury of the Ministry of Communications all Supplemental Military Yen Currency Type "A" on hand, together with a statement that no Supplemental Military Yen Currency Type "A" remains in its possession. In addition, each public office will forward to the Treasury of the Ministry of Communications any amount in Military Payment Certificates which is in excess of the amount authorized to be withheld for change-making purposes by that office, as set forth in Inclosure 1.
e. The Ministry of Communications will supply each of its public offices with a list of rates in Military Payment Certificates, showing charges for each and every class of message, or for radiotelephone calls, currently authorized for transmission to or through the United States, its territories and possessions. One copy of such a list of rates is provided in Inclosure 2. It will be noted that since the lowest denomination that will be available in Military Payment Certificates will be that of five cents($0.05), and the rates per word are quoted in cents, and in some instances fractions of a cent, it will be necessary to round out the total charges for a message or radiotelephone call, to the nearess figure which is exactly divisible by five(5).
Examples: (a) 11 chargeable words LC to Chicago
11 x $.13 = $ 1.43; charge $1.45.
(b)14 chargeable words LC to Chicago
14 x $.13 = $1.82 ; charge $1.80.
(c) 16 chargeable words LC to Chicago
16x $.13 = $2.08 ; charge $2.10.
(d) 19 chargeable words LC to Chicago
19 x $.13 = $2.47 ; charge $2.45.
(e) 54 chargeable words LC to Chicago
54 x $.13 = $7.02 ; charge $7.00.
(f) 32 chargeable words ▲LT to Chicago
32 x 0.06 - 2/3= $2.13 - 1/3; charge $2.15.
5. The Ministry of Communications is hereby authorized to withhold the amount of $3,500.00 in Military Payment Certificates for change-making purposes in its public offices. Inclosure 1 is a list of the public offices authorized to withhold this currency, together with the amount allocated to each public office. During the period 1 October to 15 October 1946 inclusive, each public office is authorized to withhold, for change-making purposes, the amount allocated to it, in either Military Payment Certificates or Supplemental Military Yen Currency Type "A", or a combination of each, but not in an amount of either or both currencies that will exceed the total authorized to be withheld as specified in Inclosure 1. The Ministry of Communications is further authorized to withhold, as an addition to the amount listed in Inclosure 1 for its own Treasury, sufficient Military Payment Certificates to offset any deficit in the total amount of $3,500.00 which may be occasioned by one or more of its public offices not having accumulated the full amount authorized for that public office. The amount so held by the Treasury of the Ministry of Communications will be reflected in the semi-monthly revenue collection report referred to in paragraph 12 below. The total amount in Military Payment Certificates withheld by the Ministry of Communications, in its Treasury and at its public offices for change-making purposes, will be at all times exactly $3,500.00 in Military Payment Certificates. Any public office, which has not accumulated by 15 October 1946, sufficient Military Payment Certificates to equal the amount authorized that public office, is authorized to withhold such Certificates collected in subsequent semi-monthly periods, or as the Ministry will direct, until such time as the total amount authorized to be withheld for change-making purposes in Military Payment Certificates by that office, in accordance with Inclosure 1, has been accumulated. Each public office upon accumulating the total amount authorized will thereafter maintain, for change-making purposes, the exact amount authorized in Military Payment Certificates and will forward to the Treasury of the Ministry of Communications at intervals which the Ministry of Communications will prescribe, all Military payment Certificates collected for prepayment of messages or radiotelephone calls, as described in paragraph 3 above, in excess of the stipulated amount to be withheld for change-making purposes.
6. The amount in Military Payment Certificates in the possession of any public office will never be in excess of the amount collected since the last forwarding of collections to the Treasury of the ministry of Communications plus the amount authorized for change-making purposes. The transactions of each public office involving Military Payment Certificates will be shown by that public office's accounting records which will be open for inspection at all times by representatives of the General Accounting Section of General Headquarters, Supreme Commander for the Allied Powers.
7. The amount authorized for change-making purposes must be withheld from the Ministry of Communications share of the revenue derived from receipts for prepaid messages and radiotelephone calls, described in paragraph 3 above, and must not be withheld from the share due the American carriers.
8. The amount withheld for change-making purposes at any public office and the number of public offices shown on Inclosure 1 may neither be increased nor decreased without the approval of General Headquarters, Supreme Commander for the Allied Powers, except as provided for wile accumulating the withholding fund. By pre-arrangement, large denominations of Military Payment Certificates 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.
9. The deposit by the Ministry of Communications on 5 November 1946 with the "Transfer Agent for Telephone and Telegraph Message Funds", hereinafter called the "Transfer Agent", which will be made in accordance with this directive and will cover the amounts due each American carrier for the period 1 October to 15 October 1946 inclusive, will include both Supplemental Military Yen Currency Type "A" and Military Payment Certificates. All of the Supplemental Military Yen Currency Type "A" on hand with the Ministry of Communications, including that hold by its public offices, will be deposited on 5 November 1946 with the "Transfer Agent". Thereafter, only Military Payment Certificates will be deposited. Un the event that the Ministry of Communications has on hand, on 15 October 1946, a sum representing deposits made for uncompleted radiotelephone calls to the United States, such deposits having been made in Supplemental Military Yen Currency Type "A", the Ministry of Communications will withhold the equivalent amount in Military Payment Certificates so that all of the Supplemental Military Yen Currency Type "A" will be deposited as directed. The Ministry of Communications will deposit on 5 November 1946 all of the Military Payment Certificates collected in excess of the $3,500.00 authorized to be withheld plus the amount representing advance radiotelephone payments. The total amount deposited in both currencies will represent the full amount due the American carriers, plus all of the Supplemental Military Yen Currency Type "A" on hand with the Ministry of Communications and its public offices heretofore authorized to be withheld for change-making purposes, plus the Ministry's share of the revenue collected during the period, less $3,500.00 in Military Payment Certificates. From this total amount deposited, the "Transfer Agent" will convert to United States dollars the amount due the American Carriers for their share of the revenue, and will convert the balance to Japanese Yen for payment to the Ministry of Communications for its share of the revenue. Inclosure 3 is the prescribed from to be used by the Ministry on 5 November 1946 for the statement to be submitted to the "Transfer Agent". Inclosure 4 is the prescribed form to be used by the Ministry upon depositing Supplemental Military Yen Currency Type "A" and Military Payment Certificates on 5 November 1946, which represent funds due the Ministry of Communications. Inclisure 5 is the prescribed form to be used by the Ministry of Communications as a receipt for the Japanese Yen received from the "Transfer Agent" on 5 November 1946. Inclosures 6, 7, and 8 are the prescribed forms to be used by the Ministry of Communications in connection with submitting statements and making deposits with the "Transfer Agent" for periods subsequent to the period ending 15 October 1946.
10. The "Transfer Agent" will arrange with the United States Finance Officer, or such other agent as the General Headquarters, Supreme Commander for the Allied Powers, may designate, to convert the Supplemental Military Yen Currency Type "A" and the Military Payment Certificates into United States dollar instruments and into Japanese Yen to accomplish the purposes described in this directive. Japanese Yen will be paid in cash to the Treasury of the Ministry of Communications. In all cases in this directive which require transactions by or with the Ministry of Communications or its Treasury, it is understood that such transactions will be performed on behalf of the Ministry of Communications or its Treasury by a duly authorized representative in each instance.
11. On 21 November 1946, and thereafter on each regular date as herein after prescribed, the Ministry of Communications will deposit with the "Transfer Agent" the total amount of Military Payment Certificates that has been collected by its public offices for payment of messages and radiotelephone calls, as described in paragraph 3 above, during the period for which statements are being rendered. The "Transfer Agent" will convert the Military Payment Certificates so received into American Dollars and Japanese yen, forward checks drawn on the Treasury of the United States in amounts as shown due the American carriers and pay to the Ministry of Communications its share if revenue in Japanese yen. The Ministry of Communications will render statements and make deposits in accordance therewith to the "Transfer Agent" on a semi-monthly basis, the periods of which will be from the first to the fifteenth of the month inclusive, and from the sixteenth to the last day of the month inclusive. Statements and deposits will be made with the "Transfer agent" within twenty-one (21) days after the close of each period. The deposits to be made in accordance with the above will be accompanied by five (5) copies of a preliminary statement showing the amount of dollars (Military Payment Certificates) due each American carrier for the period involved or as a result of adjustment made for previous periods. The "Transfer Agent" will forward the statements to the respective carriers, endorsing one of each as a receipt to be returned to the Ministry of Communications.
12. In addition to the semi-monthly preliminary statements required in accordance with the preceding paragraph, the Ministry of Communications will submit a report in triplicate semi-monthly to the General Accounting Section, General Headquarters, Supreme Commander for the Allied Powers not later than five days after the close of each semi-monthly period, showing the exact amount in Military Payment Certificates collected by each of its public offices during the period, as well as the exact amount withheld by each public office for change-making purposes on the closing date for that period. The figures for this preliminary report are to be collected by means of rapid communication from outlying public offices, in order that no delay will be incurred in submitting the report to the General Accounting Section. Description or breakdown by classification of messages or radiotelephone calls is not required in this report. Total amounts will be shown in two columns for each public office, the columns representing, (1) total Military Payment Certificates collected during the current period, and (2) total Military Payment Certificates withheld for change-making purposes. The statement submitted for the period 1 to 15 October 1946 will include two additional columns representing, respectively, the total amount of Supplemental Military Yen Currency Type "A" collected during the current period, and the total amount of Supplemental Military Yen Currency Type "A" heretofore authorized to be withheld for change-making purposes.
13. Final traffic accounting 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", will be forwarded to the Ministry of Communications.
14. All communications relative to fiscal or accounting matters will be transmitted through the "Transfer Agent", except as provided for in paragraphs 12 and 16 of this memorandum. 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 either Military Payment Certificates or Supplemental Military Yen Currency Type "A" received by its public offices for messages and radiotelephone calls, as described in paragraph 3 above, to be turned over to any banking agency or any individual until after the currencies have been received by the Treasury of the Ministry of Communications, Tokyo To, Azabuku, Iigura, Rokuchome. The Treasury of the Ministry of Communications is authorized to use the National City Bank of New York, Tokyo Branch, as its depository for either currency, pending the time deposits are made with the "Transfer Agent". In this connection it will be noted that Supplemental Military Yen Currency Type "A" is included in the provisions of this paragraph only to provide for the interim wherein both currencies will be in circulation.
16. Direct correspondence within the scope of this memorandum is authorized between the "Transfer Agent". The Civil Communications Section, or the General Accounting Section, General Headquarters, Supreme Commander for the Allied Powers, and the Ministry of Communications.

FOR THE SUPREME COMMANDER:

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

8 Incls:
Incl # 1- List of Public Offices of the KOC
by Bureau Areas and Prefectures.
Incl # 2- Radiotelephone and Telegraph Rates
to US and Hawaiian Islands.
Incl # 3 through #8 - Prescribed statement forms.