GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

APO 500
25 November 1947

AG 463.7 (25 Nov 47) GD
(SCAPIN - 1827)

MEMORANDUM FOR	JAPANESE GOVERNMENT.
THROUGH	Central Liaison Office, Tokyo.
SUBJECT	Disposition of Waste Petroleum Products.

1. It has come to the attention of the Supreme Commander for the Allied Powers that there is an apparent misunderstanding regarding the definition of waste petroleum products. To correct this misunderstanding, the previsions of memorandum to Japanese Government, AG 463.7 (5 Apr 47)GD (SCAPIN 1602), are supplemented by this directive.
2. The Japanese Government will classify waste petroleum products as "Domestic" and "Imported". These classes are further defined as follows:
a. "Domestic" waste products will include all petroleum products produced in Japan which cannot be utilized for their original purpose, or as an acceptable substitute for any other refined petroleum product. Included in this category are such common products as "tank bottom oils," contaminated stock, and sub-specification products produced by Japanese refineries.
b. "Imported" waste products will include all petroleum products except aircraft engine oils imported into Japan by United States Army or Navy forces which have been used or which cannot be utilized for their original purpose or as an acceptable substitute for any other refined petroleum product.
3. Petroleum Distribution Kodan will, under the direction of the Ministry of Commerce and Industry, purchase and retain title to all waste petroleum products referred to in paragraph 2 above, from point of collection through the refining process and until the refined products, including all sub-specification products, are finally released for distribution.
4. In furtherance of the instructions contained in memorandum referred to in paragraph 1 above, the Japanese Government will submit to the Supreme Commander for the Allied Powers for approval the names of present collectors of waste petroleum products and the districts or areas to which they are assigned, All future nominees submitted by the Board of Trade will be approved by the Supreme Commander for the Allied Powers prior to their commencing operations.
5. The Japanese Government will require all waste oil refiners to obtain the approval of the responsible Ministry prior to disposing of any residue resulting from the refining of petroleum products entrusted to them under this directive. The Japanese Government may authorize refiners to utilize a portion of refined products in the operation of the refinery, but in no case shall the refiners be authorized to retain for their own use more than five percent of the total amount of all products refined during each month.
6. The Japanese Government will be responsible for the supply of all materials required by required by refineries for the purpose of complying with this directive.
7. The Japanese Government will continue to submit to the Supreme Commander for the Allied Powers on the twentieth day of each month for the preceding calendar month, the report currently required under memorandum to Japanese Government, AG 463.7 (5 Apr 47)GD (SCAPIN 1602), and beginning with the month of December 1947, this report will be extended to include both "Domestic" and "Imported" waste petroleum products.

FOR THE SUPREME COMMANDER:

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