MEMO FOR RECORD : (SCAPIN - 1252)
30 September 1946
1. This memorandum is concerned with the Nissan Kogaku synthetic oil plant at Wakayama. Purpose of the memorandum is to withdraw previous approval for the subject plant to convert to the production of ammonium sulfate fertilizer. Previous approval was granted by SCAPIN 1055. The present action is to rescind this SCAPIN.
2. a. This plant originally was approved only because inspection of the plant indicated early production of fertilizer was possible and the plant management declared itself capable of effecting the rapid conversion. A very recent plant inspection revealed that progress on the conversion was negligible. In view of the lack of progress and the fact that some equipment scheduled for delivery to the plant can now be diverted to other plants thereby speeding up the expansion of existing facilities, the original reason for granting approval no longer exists. The plant capacity is not needed to implement the overall fertilizer program, and any future effort expended on this plant would represent a drain on the rest of the rehabilitation program for fertilizer plants.
b. Removal of this plant from the approved list is consistent with the policy embodied in the basic fertilizer directive, SCAPIN 962, 17 May 1946. In order to assure continuous best use of scarce materials, this directive approved certain plants for conversion on a tentative basis, each plant being subject to removal from the approved list in case its conversion schedule was seriously retarded.
3. This is an administrative matter; no surveillance by Eighth Army is necessary.
4. No concurrences required.
J. Z. R.