GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

APO 500
2 October 1947

AG 095 (2 Oct 47) ESS/AC
(SCAPIN-1788)

MEMORANDUM FOR	JAPANESE GOVERNMENT.
THROUGH	Central Liaison Office, Tokyo.
SUBJECT	Emergency Expenditures by Restricted Concerns as Result of Flood.

1. Memorandum from the Minister of Finance, dated 26 September 1947, subject: Regulations Affecting Restricted Concerns in Connection with Rehabilitation of Flood Ravaged Areas, requests that restricted concerns be given authority to make emergency expenditures for rapair of flood damage without prior approval as required by Memorandum for the Japanese Government from General Headquarters, Supreme Commander for the Allied Powers, AG 300.8 (8 Dec 45) ESS/AC (SCAPIN 408), dated 8 December 1945, subject: Regulations Affecting Restricted Concerns.
2. Restricted concerns may make expenditures for the following items of repair or rehabilitation of flood damage, without prior approval of the Supreme Commander for the Allied Powers:
a. Construction of levees and embankments; construction of drainage channels; operation of water pumps; transfer of raw materials, machinery and finished goods to places of safety; clearing away rubble, refuse, silt, etc., left by flood waters; emergency measures for prevention of rust damage to machinery; prevention of collapse of buildings; and levelling land.
b. The above items of emergency work may be financed by either withdrawals from bank accounts or negotiation of bank loans.
3. The authority granted in paragraph 2, above, shall be subject to compliance with the following:
a. Expenditures shall be made only to the minimum extent necessary to prevent irreparable damage to plant facilities or to permit resumption of production.
b. Expenditures shall not be made under this authority for the purchase of new machinery.
c. Within thirty (30) days from the date of this memorandum all restricted concerns having made emergency expenditures, under the authority granted herein, shall submit applications covering such expenditures with full explanation and justification.
d. A report shall be made within forty-five (45) days from the date of this memorandum of all machinery or machine parts and all other plant equipment removed to places of safety and which have not been returned to original installations, together with an explanation of such action.
4. This memorandum shall not be construed as authorizing permanent change in physical plant facilities without prior approval of the Supreme Commander for the Allied Powers, or the disposition of raw materials except in the normal course of business.
5. The provisions of the memorandum shall remain in effect for a period of thirty (30) days from the date thereof and are applicable to only the current emergency. Action taken thereafter must be in accord with established regulations and procedures.

FOR THE SUPREME COMMANDER:

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