SCAPIN-1735: PAYMENT OF PRINCIPAL AND INTEREST ON JAPANESE GOVERNMENT BONDS OWNED BY PERSONS RESIDING OUTSIDE JAPAN
GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS
APO 500
16 June 1947
AG 168
(16 Jun 47)
ESS/FI
(SCAPIN - 1735)
| MEMORANDUM FOR | Japanese Government |
|---|---|
| THROUGH | Central Liaison Office, Tokyo |
| SUBJECT | Payment of Principal and Interest on Japanese Government Bonds Owned by Persons Residing Outside Japan |
1. Reference is C. L. O. Memorandum No. 3210 (LO 1198-SF/FF), dated 30 April 1947, subject: Application for Permission to Pay Principals and Interests of Japanese Government Bonds on Maturity Owned by Persons Residing Outside of Japan.
2. Application attached to reference memorandum is approved subject to the provision that all interest and principal paid on said bonds will be placed in blocked accounts from which no withdrawals may be authorized without permission of the Supreme Commander for the Allied Powers.
FOR THE SUPREME COMMANDER:
/s/ A. J. Rehe
for /t/ R. M. LEVY,
Colonel, A.G.D.,
Adjutant General
MEMO FOR RECORD : (SCAPIN - 1735)
23 May 1947
1. C. L. O. M. No. 3210 (LO 1198-SF/FF), dated 30 April 1947, Subject: Application for Permission to Pay Principals and Interests of Japanese Government Bonds on Maturity Owned by Persons Residing Outside of Japan, forwards an application from the Ministry of Finance, requesting that the payment of principal and interest on certain Japanese Government Bonds be authorized to branch offices and agencies in Japan of companies whose head offices are located outside Japan and to property custodians and representatives in Japan of persons residing outside Japan. Authorization would be given for payment of principal and interest on only national bonds actually located in Japan and registered bonds on which payment places of the principal and interest have been designated as the head office, branches or agencies of the Bank of Japan located in Japan.
2. Memorandum for IJG from GHQ, SCAP, AG 130 (22 Sep 45) ESS (SCAPIN 45), dated 22 September 1945, subject: Control of Financial Transactions, prohibits all transactions in foreign exchange without the prior approval of the Supreme Commander for the Allied Powers.
3. It is considered that this application should be approved. The payment of principal and interest on these Japanese Government Bonds owned by persons outside Japan need not be deferred. Since the money would be paid into blocked accounts in Japan from which no releases could be made without Supreme Commander for the Allied Powers approval (except for maintaining and preserving property in Japan of agencies with head offices outside Japan), there would be no transfer of these funds to points outside Japan or possible misuse of the funds within Japan. In the US this same general policy was followed relative to the payment of principal and interest on other securities and U.S. government bonds held by Japanese, German and other nationals and has worked successfully.
4. This is an administrative memorandum and does not require the surveillance of the EIGHTH Army.
5. The interests of Korea have been provided for.
6. Concurrence: CPC (see attached check sheet)
W. K. L.
