MEMO FOR RECORD : (SCAPIN - 1641)
WFM/ECW/LHW/gg
17 April 1947
1. References are the following memoranda:
a. CLO Memorandum No. 58 (LO 2600/1397), 8 January 1947, forwarding application of Tokai Motor Transportation Company, Ltd, a subsidiary of Okura Mining Company, Ltd. and a Restricted Concern pursuant to SCAP Memorandum AG 004 (8 Dec 45) ESS/AC, (SCAPIN-403), subject: "Establishment of a Schedule of Restricted Concerns, "for removal from the Schedule of Restricted Concerns.
b. Memorandum for the IJG from GHQ, SCAP, AG 095 (19 Nov 46) ESS/AC, (SCAPIN-2618-A), subject: "Application of Okura Mining Company, Ltd, (Okura Kogyo K. K.), for permission to Sell Capital Interest in Tokai Motor Transportation Company, Ltd. (Tokai Jidosha K. K.)."
2. a. The Tokai Motor Transportation Company, Ltd, operates a bus transportation system in the vicinity of Ito and Atami, is capitalized at \1,165,000 and has assets of \4,000,000.
b. The company presented a comprehensive and democratic reorganization plan which entailed a considerable amount of time, effort and cooperation to formulate. This plan has been accepted and approved by SCAP, reference memorandum 1b, above, which provided that:
(1) Employees of the Tokai Motor Transportation Company, Ltd, would purchase all shares owned by the Okura Mining Company, Ltd, through a Benefit Society of Employees of the former company.
(2) No officers or directors of Tokai Motor Transportation Company, Ltd, will hold any concurrent position in the Okura Mining Company, Ltd, or other Restricted Concerns.
c. The transfer of shares has now been accomplished by means of an Employees' Share Purchasing Agreement, which is a contract between Okura Mining Company, Ltd, the employees of the Tokai Motor Transportation Company, Ltd, the Benefit Society of Employees of the Tokai Motor Transportation Company, Ltd, and the Tokai Motor Transportation Company, Ltd, Executed under the control of the Holding Company Liquidation Commission.
3. On 22 February 1947, at Shimoda, Shizuoka Prefecture, an Extraordinary General Meeting of Shareholders was held for the purpose of amending the Articles of Incorporation and election of new executive officers, which objectives were accomplished. In attendance at this meeting as observers were the Chairman of the Holding Company Liquidation Commission and a representative of SCAP. It has been established that the Tokai Motor Transportation Company, Ltd, has divorced itself of Zaibatsu and other objectionable influences and its business relations are in accordance with the accepted SCAP policy. In view of the above facts, the Tokai Motor Transportation Company, Ltd, is hereby removed from the Schedule of Restricted Concerns.
4. This is an administrative matter, and no surveillance by the Eighth Army is required.
5. The interests of USAFIK are not concerned.
6. Concurrences: ESS/LE (Mr. E. J. Carrington)
E.C.W. 25-6561