GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

APO 500
8 November 1948

AG 676.3 (3 Nov 47) CCS
(SCAPIN - 1811/1)

MEMORANDUM FOR	JAPANESE GOVERNMENT.
SUBJECT	Operation of Great Northern Telegraph Company Cable Station and Facilities at Nagasaki.

1. Reference is made to:
a. Memorandum for Japanese Government, file AG 676.3 (3 Nov 47) CCS, SCAPIN 1811, dated 3 November 1947, subject same as above.
b. Memorandum for Japanese Government, file AG 311 (9 Sep 47) CCS, SCAPIN 1771, dated 9 September 1947, subject: Relaxation of International Telecommunications Restrictions, as amended.
c. Memorandum from Japanese Government, file C.L.C.O. No. 3593 (2p), dated 18 October 1948, subject: Application for Approval of Agreement between the Ministry of Communications and the Great Northern Telegraph Company.
2. The agreement accompanying memorandum of reference lc above is approved.
3. Effective upon receipt of this memorandum, the Ministry of Communications is authorized to send traffic originating in Japan and to receive traffic terminal to Japan, between Japan and the service areas of the Great Northern Telegraph Company shown in inclosure 1. Such traffic will circulate over the Great Northern Telegraph Company's submarine cables connecting Nagasaki with Vladivostok and will consist of the following classifications:
a. Full rate (Ordinary)
b. LC (Deferred)
c. NLT or DLT (Letter Telegrams)
d. CDE (Codo)
e. Press
f. Government
Administrative routine service messages and paid service notices concerning traffic sent and received over the Great Northern Telegraph Company cables also are authorized.
4. Messages with prepaid reply (RP) will be admitted between Japan and the areas, served via the Great Northern Telegraph Company cables.
The particulars thereof will be handled in accordance with the provisions of the International Telegraph Regulations (Cairo 1938), Article 56, paragraphs 462 to 469 inclusive, except that:
a. The number of words in a reply telegram from Japan with charges prepaid by use of a prepaid reply voucher will be limited to prevent the charges from exceeding the amount of the voucher unless such excess charges can be paid by the sender utilizing the voucher in a currency authorized by the Supreme Commander for the Allied Powers in paragraph 5 below:
b. Conversion of reply paid amounts from gold francs into sterling amounts on inward traffic from Great Britain, Ireland, Gibraltar and Malta at the rate of one gold francs Into U. S. dollar amounts at the rate of gold francs 3.06l equals one U. S, dollar ($1.00) on messages from other places, as well as conversion of reply paid amounts on outward messages, regardless of destination, from sterling or U. S. dollar amounts, as collected, into gold francs at the conversion ratio stated herein, will be accomplished at Nagasaki and will be the responsibility of the Ministry of Communications.
5. Currencies authorized to be used in Japan in payment of the charges for messages circulating over the Great Northern Telegraph Company cables will be British Armed Forces Special Vouchers, hereinafter called BAFSV, United States Military Payment Certificates and Foreign Trade Payment Certificates.
6. Areas served by the Great Northern Telegraph Company's cables via Nagasaki-Vladivostok, schedule of rates per full rate word and per press word, terminal rates accruing to the Ministry of Communications for traffic exchanged between Japan and Great Britain, Ireland, Gibraltar and Malta, between Japan and the U. S. S. R. and between Japan and all other countries within the service area, expressed both in U. S. dollar and in Sterling currency denominations are shown in inclosure 1.
7. The settlement procedure for outward prepaid messages with charges paid in BAFSV will be as follows:
a. Within twenty-one (21) days after the close of each calendar month the Ministry of Communications will pay over to the Transfer Agent for British Commonwealth Telecommunications Message Funds all BAFSV currencies collected by the Ministry of Communications in payment of the charges for outward prepaid messages sent from Japan over the facility of the Great Northern Telegraph Company cables. These payments will be accompanied by three (3) copies of supporting statements showing the amounts due to the Great Northern Telegraph Company and to the Ministry of Communications for the period covered by the subject statements.
b. The Transfer Agent for British Commonwealth Telecommunications Message Funds will pay over to the Great Northern Telegraph Company Transfer Agent the Japanese yen equivalent, at the current military conversion rate, of the entire amount of the BAFSV collections received for each monthly payment period from the Ministry of Communications.
c. Upon receipt of each such Japanese yen payment, the Great Northern Telegraph Company Transfer Agent will verify the accounts and pay into an appropriate account, to be designated by the Supreme Commander for the Allied Powers, the U. S. dollar equivalent of the BAFSV currency amount accruing to the Ministry of Communications for each such payment period.
For the purpose of computing the U. S. dollar amount due to the Ministry of Communications, the Great Northern Telegraph Company will use the ratio of one penny equals $.0168.
8. The settlement procedure for outward prepaid messages with the charges paid in U. S. dollar currencies will be as follows:
a. Within twenty-one (21) days after the close of each calendar month, the Ministry of Communications will deposit in an appropriate account to be designated by the Supreme Commander for the Allied Powers all U. S. dollar currencies collected by the Ministry of Communications in payment of the charges for outward prepaid messages sent from Japan over the facility of the Great Northern Telegraph Company cables during the preceding calendar month, These deposits will be accompanied by three (3) copies of supporting statements showing amounts due to the Ministry of Communications and to the Great Northern Telegraph Company for the period covered by the subject statements.
b. The U. S. dollar currency amount due to the Great Northern Telegraph Company will be paid to the Great Northern Telegraph Company Transfer Agent by the Supreme Commander for the Allied Powers from deposits made in accordance with paragraph 8a above.
9. The settlement procedure for incoming messages and outgoing receiver-to-pay messages will be as follows:
a. The Ministry of Communications and, the Great Northern Telegraph Company will exchange traffic statements and statements of account as mutually agreed upon and in accordance with accepted international telecommunications practices. One copy of all such statements will be submitted to the Supreme Commander for the Allied Powers.
b. The Ministry of Communications and the Great Northern Telegraph Company will reconcile these statements in accordance with accepted international telecommunications practices and will mutually agree upon the amount due to the Ministry of Communications and to the Great Northern Telegraph Company.
c. The amounts agreed upon as being due to the Ministry of Communications will be deposited by the Great Northern Telegraph Company Transfer Agent, in U. S. dollar currency, into an appropriate account to be designated by the Supreme Commander for the Allied Powers.
10. The Ministry of Communications will submit traffic revenue reports to Civil Communications Section, General Headquarters, Supreme Commander for the Allied Powers, covering traffic received into and sent from Japan over the facility of the Great Northern Telegraph Company cables, similar to those required for international radiotelegraph circuits from Japan.
11. Traffic originating in and terminal to Japan circulating over the Great Northern Telegraph Company cables will be subject to all applicable censorship rules and regulations as prescribed in SCAPIN 1771 as amended.
12. In order to minimize delays in the event of cable interruption, traffic from Japan routed via the Great Northern Telegraph Company, on which message charges have been prepaid in RAFSV's may be diverted via the Osaka-Colombo radiotelegraph circuit and accounted for accordingly. Messages on which the charges have been prepaid in dollar currencies may be diverted via the Tokyo-San Francisco circuits and will be considered and handled as unrouted traffic.
13. Additional U. S. dollar revenue accruing to the Ministry of Communications out of the Great Northern Telegraph Company's cable tolls for traffic to and from Japan via Nagasaki-Vladivostok cables will be deposited by the Great Northern Telegraph Company Transfer Agent into an account to be designated by the Supreme Commander for the Allied Powers.
14. Any revenue in Japanese yen currency accruing to the Ministry of Communications from the Great Northern Telegraph Company pursuant to reestablishment of international submarine cable communication services via the Nagasaki-Vladivostok cable of the company will be paid by the Great Northern Telegraph Company Transfer Agent directly to the Ministry of Communications as mutually agreed upon between them.
15. Direct communication between the Civil Communications Section and other staff sections of General Headquarters, Supreme Commander for the Allied Powers and the Ministry of Communications regarding operating, accounting and settlement procedures within the scope of this memorandum is authorized.

FOR THE SUPREME COMMANDER:

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

1 Incl
Service Areas, Total Rates Per Word and Japan's Terminal Rates for Telegrams via Nagasaki-Vladivostok Cable