GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

APO 500
12 August 1947

AG 311.23 (12 Aug 47) CCS
(SCAPIN - 1762)

MEMORANDUM FOR	JAPANESE GOVERNMENT.
THROUGH	Central Liaison Office, Tokyo.
SUBJECT	Osaka-colombo Radiotelegraph Circuit.

1. Reference is made to memoranda for the Japanese Government as follows:
a. File AG 311.23 (11 Jan 46)CCS (SCAPIN 578), dated 11 January 1946, subject: Establishment of Sender Composition Message Service and Press Service Between Great Britain and the Tokyo Area.
b. File AG 311.23 (18 Sep 46)CCS (SCAPIN 1206), dated 17 September 1946, subject: Establishment of Expeditionary Force and Sender Composition Message Service Between Japan and All Points in the British Commonwealth over the Osaka-London Radiotelegraph Circuit.
c. File AG 311.23 (5 May 47)CCS (SCAPIN 1657), dated 5 May 1947, subject: Change in Acceptance Offices for EFM and SCM Messages from Japan to British Commonwealth Points.
2. The rate schedule contained in paragraph 4 of reference 1a above as replaced by inclosure 1 to reference 1b above is hereby superseded by the rate tables shown on inclosure 2 of this memorandum.
3. Paragraph 7 of reference 1a above is hereby amended to read as follows:
Statements of accounts will be expressed in sterling and will be rendered monthly to the British Transfer Agent. A copy of the monthly statements of account will be supplied to General Headquarters, Supreme Commander for the Allied Powers, attention General Accounting Section.
4. Paragraph 5 of reference 1a above as amended by paragraph 5 of reference 1b above is superseded by the list of public acceptance offices shown in inclosure 1 of this memorandum.
5. Memorandum for Japanese Government, file AG 311.23 (5 Ma47) CCSCS (SCAPIN 1657) dated 5 May 1947, subject: Change in Acceptance Offices for EFM and SCM Messages from Japan to British Commonwealth Points, further identified as reference 1c above, is rescinded coincidentally with the effective date of this memorandum.
6. This memorandum will become effective at 0001 hours Japan time 15 August I947. Thereafter EFM and SCM messages from Japan to all points in the British Commonwealth will be prepaid in British Armed Forces Special Vouchers, hereinafter referred to as BAFSVs, at rates per message or per word, expressed in sterling as shown in the rate tables in inclosure 2 of this memorandum.
7. At least forty-eight (48) hours prior to the effective date of this memorandum the Ministry of Communications will issue the following instructions to its representatives at all public acceptance offices in Japan where EFM and SCM messages as described in paragraph 6 above will be filed:
a. Effective 0001 hours 15 August 1947, and thereafter until further notice, only BAFSVs will be accepted in prepayment of the charges for EFM and SCM messages from Japan to points in the British Commonwealth.
b. As soon after the close of business on 31 August 1947 as the Ministry of Communications will direct, each public acceptance office concerned will forward to the Treasury of the Ministry of Communications any amount in BAFSVs which is in excess of the amount authorized to be withheld for change making purposes by that office, as set forth in inclosure 1.
8. The Ministry of Communications will supply each of the public acceptance offices for EFM and SCM messages from Japan to the British Commonwealth shown in inclosure 1 of this memorandum, with a list of rates in sterling and payable in BAFSVs, showing charges for all classes of messages currently authorized for transmission from Japan to any point in the British Commonwealth. 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 BAFSVs will be that of three pence (3d), it will be necessary to round out the total charges for a message to the nearest three ponce (3d) or multiple thereof, as per the following examples:
a. 11 chargeable words LC
11 x 7 1/2d = 6s-10 1/2d; charge 7s-0d
b. 50 chargeable words NLT
50 x 5d = 30s-10d; charge 30s-9d
c. 37 chargeable words NLT
37 x 5d = 15s-5d; charge 15s-6d
9. The Ministry of Communications is hereby authorized to withhold the amount of L 325. 0. 0 in BAFSVs for change making purposes in its public acceptance offices. Inclosure 1 is a list of the public acceptance offices authorized to withhold this currency, together with the amount allocated to each public acceptance office. The Ministry of Communications is further authorized to withhold, as an addition to the amount listed in inclosure 1 for its own Treasury, sufficient BAFSVs to offset any deficiency in the total amount of L 325. 0. 0 which may be occasioned by one or more of its public acceptance offices not having accumulated the full amount authorized for that public acceptance 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 20 below. The total amount in BAFSVs withheld by the Ministry of Communications, in its Treasury and at its public offices for change making purposes, will be at all times exactly L 325. 0. 0 in BAFSVs. Any public acceptance office which has not accumulated by 31 August 1947, sufficient BAFSVs to equal the amount authorized, that public acceptance office is authorized to withhold such BAFSVs collected in subsequent semimonthly periods, or as the Ministry will direct, until such time as the total amount authorized to be withheld for change making purposes in BAFSVs by that office, in accordance with inclosure 1, has been accumulated. Each public acceptance office upon accumulating the total amount authorized will thereafter maintain, for change making purposes, the exact amount authorized in BAFSVs and will forward to the Treasury of the Ministry of Communications at intervals which the Ministry of Communications will prescribe all BAFSVs collected for prepayment of messages, as described in paragraph 6 above, in excess of the stipulated amount to be withhold for change making purposes.
10. The amount in BAFSVs in the possession of any public acceptance 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 acceptance office involving BAFSVs will be shown by the accounting records of that public acceptance office and such records will be open for inspection at all times by representatives of the Financial Adviser to the Genera Officer Commanding, British Commonwealth Occupation Force, and to representatives of General Accounting Section, General Headquarters, Supreme Commander for the Allied Powers.
11. 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, described in paragraph 6 above, and must not be withheld from the share due the British Carriers.
12. The amount withheld for change making purposes at any public acceptance office and the number of public acceptance 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 while accumulating the withholding fund. By pre-arrangement, large denominations of BAFSVs may be exchanged by public-acceptance offices of the Ministry of Communications with the nearest British Commonwealth Paymaster for small denominations so that a proper balance in denominations will be available to facilitate change making.
13. On 20 September 1947, the Ministry of Communications will deposit with the "Transfer Agent for British Commonwealth Telecommunications Funds" (hereinafter referred to as the "British Transfer Agent") the total amount of BAFSVs that has been collected by its public acceptance offices for payment of messages for the period 15 August to 31 August I947, less the amount of L 325. 0. 0 authorized to be held for change making purposes. Thereafter the Ministry of Communications will render statements and make deposits in accordance therewith to the "British Transfer Agent" on a semi-monthly basis, the periods of which will be from the 1st to the 15th of the month inclusive, and from the 16th to the last day of the month inclusive. Statements and deposits will be made with the "British 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, from the records of the Ministry of Communications, the amount in pounds sterling (BAFSVs) due in net settlement for all traffic in the period involved (or as a result of adjustment made for previous periods) either from the Japanese Ministry of Communications to the British Carrier or vice versa. The "British Transfer Agent" will forward the statements to the carriers concerned, endorsing one as a receipt to be returned to the Ministry of Communications.
14. If the net balance is in favor of the British Carrier, the "British Transfer Agent" will convert to pounds sterling from the amounts deposited with him the amount due to the British Carrier in net settlement and will convert the balance to Japanese Yen for payment to the Ministry of Communications. If the net balance is in favor of the Ministry of Communications, the "British Transfer Agent" will convert the entire sum deposited to Japanese yen for payment to the Ministry of Communications and will, in addition, deposit in an account designated by the Supreme Commander for the Allied Powers, in sterling, the net sum due to the Japanese Government from the British Carrier, such sum to be under the control of the Supreme Commander for the Allied Powers without restrictions.
15. The Japanese Ministry of Communications' share of revenue for the radiotelegraph services performed in accordance with this directive will be:
(a) The applicable Japanese terminal charges.
(b) One-half of the radio rate computed after deduction of the Japanese terminal charge and the U.K. terminal and beyond charges.
16. The British Carriers' share of revenue will be:
(a) The applicable U.K. terminal charges plus the beyond charges.
(b) One-half of the radio rate computed after deduction of the Japanese and U.K. terminal charges and the beyond charges.
17. The division of charges per full rate word for the radiotelegraph services to be performed within the scope of this directive are shown in inclosure 2 of this memorandum. The rates, terminal charges and residue applicable to SCM messages of LC, NLT, and VLT classifications exchanged between Japan and
the United Kingdom and between Japan and all other British Commonwealth countries will be proportionate charges based upon the respective charges applicable to SCM full rate messages exchanged between Japan and the British Commonwealth countries concerned.
18. Inclosure 3 is the prescribed ▲rm to be used by the Ministry upon depositing BAFSVs on 20 September 1947, which represents funds due to the Ministry of Communications. Inclosure 4 ▲s the prescribed form to be used by the Ministry of Communications as a receipt for the Japanese Yen received from the British Transfer Agent on 20 September 1947. Inclosure 5 is the prescribed form to be used by the Ministry upon depositing BAFSVs on 20 September 1947, and semi-monthly thereafter, which represent funds due to the British Carrier. Inclosure 6 and 7 are the prescribed forms to be used by the Ministry upon depositing BAFSVs for periods subsequent to the period ending 31 August 1947, in respect of funds due to the Ministry of Communications. Inclosure 8 is the prescribed form to be used by the Ministry for requesting the "British Transfer Agent" to credit to the Supreme Commander for the Allied Powers in sterling the net sum due to the Japanese Government from the British Carrier, when the net balance is in favor of the Ministry of Communications.
19. The "British Transfer Agent" will arrange with the Chief Paymaster, Headquarters, British Commonwealth Occupation Force, or such other agent as the Headquarters, British Commonwealth Occupation Force may designate, to convert the BAFSVs into pound sterling instruments and into Japanese Yen to accomplish the purpose 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.
20. In addition to the semi-monthly preliminary statements required in accordance with paragraph 13, the Ministry of Communications will submit a report in triplicate semi-monthly to the Financial Adviser to the General Officer Commanding, British Commonwealth Occupation Force, Eta Jima, and supply a copy of the same to General Headquarters, Supreme Commander for the Allied Powers, attention General Accounting Section, not later than five days after the close of each semi-monthly period, showing the exact amount in BAFSVs collected by each of its public acceptance offices during the period, as well as the exact amount withheld by each public acceptance 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 acceptance offices, in order that no delay will be incurred in submitting the report to the Financial Adviser. Description or breakdown by classification of messages is not required in this report. Total amounts will be shown in two columns for each public office, the columns representing, (1) total BAFSVs collected during the current periods, and (2) BAFSVs withheld for change making purposes.
21. Final traffic accounting statements in triplicate will be submitted monthly to the "British Transfer Agent" showing payments made and adjustments, if any. The British Carrier will prepare a similar statement which, when received by the "British Transfer Agent", will be forwarded to the Ministry of Communications. Upon receipt of the traffic accounting statements submitted by the British Carrier the Ministry of Communications will reconcile the statements of the British Carrier with those prepared by the Ministry of Communications for the period covered by the statements, and reflect any necessary adjustments in the Ministry's Traffic Accounting statements for the next succeeding month. A copy of each Final Traffic Accounting statement will be submitted to the Financial Adviser to the General Officer Commanding, British Commonwealth Occupation Force, Eta Jima, and to General Headquarters, Supreme Commander for the Allied Powers, attention General Accounting Section.
22. All communications relative to fiscal or accounting matters relating to the Osaka-Colombo circuit will be transmitted through the "British Transfer Agent" except as provided for in paragraphs 20 and 25 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.
23. The "British Transfer Agent" will be located at United Kingdom Liaison Mission, British Embassy, Tokyo.
24. The Ministry of Communications will not permit BAFSVs received by its public acceptance offices for messages, as described in paragraph 6 above, to be turned over to the "British Transfer Agent" until after the currencies have been received by the Treasury of the Ministry of Communications, Tokyo To, Azabuku, Iigura, Rokuchome.
25. Direct correspondence within the scope of this memorandum is authorized between the Civil Communications Section, General Headquarters, Supreme Commander for the Allied Powers, the General Accounting Section, General Headquarters, Supreme Commander for the Allied Powers or the "British Transfer Agent" and the Ministry of Communications.

FOR THE SUPREME COMMANDER:

R.M. LEVY,
Colonel, AGD,
Adjutant General.

8 Incls
1 List of Public Office of the MOC by Bureau Areas and Prefectures
2 Rate schedules and Division of charges table for messages to British Commonwealth Countries
3 thru 8 Prescribed statement forms