GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

APO 500
1 March 1948

AG 386.7 (1 Mar 48) CPC/CD
(SCAPIN-1868)

MEMORANDUM FOR	JAPANESE GOVERNMENT.
SUBJECT	Disposition of Properties Belonging to Dissolved Organizations

1. Reference is made to the following:
a. Memorandum for the Japanese Government, file AG 386.7, (22 Apr 46) CPC/GPD, SCAPIN 1069-A, 22 April 1946, subject, “Custody of Property of Dissolved Organizations,” from General Headquarters, Supreme Commander for the Allied Powers;
b. Memorandum for the Japanese Government, file AG 123, (29 Oct. 46) CPC/GP, SCAPIN 2472-A, 29 October 1946, subject, “Funds of
Dissolved Organizations, “from General Headquarters, Supreme Commander for the Allied Powers;
c. Memorandum for the Japanese Government, file AG 091 (4 Jan 46) GS, SCAPIN 548, 4 January 1946, subject, “Abolition of Certain political Parties, Associations, Societies and Other Organizations,” from General Headquarters, Supreme Commander for the Allied Powers;
d. Memorandum for Ministry of Home Affairs, file 386.7 (1 Jul 47) CPC/GP, 1 July 1947, subject, “Maintenance Expenses of Property Belonging to Dissolved Organizations,” from Civil Property Custodian;
e. Memorandum for Ministry of Home Affairs, file 386.7 (22 Sep 47) CPC/GP, 22 September 1947, subject, “Licensing of Properties of Dissolved Organizations,” from Civil Property Custodian;
f. The Owner-Farmer Establishment and Special Measures Law, Law No. 43, October 21st, 1946, revised by Law No. 241, December 26th, 1947, together with related Orders and Regulation;
g. The Agricultural Land Adjustment Law, Law No. 67, April 2nd, 1938, revised by Law No.64, December 28th, 1945, revised by Law No. 42, October 21st, 1946, revised by Law No. 240, December 26th, 1947, together with related Orders and Regulations.
2. Reference memoranda 1a, 1b, 1d and 1e are hereby rescinded.
3. The definition of dissolved organizations as referred to herein are such organizations as defined in reference 1c above,
4. Effective on the date of this memorandum title to all assets, negotiable instruments, accounts receivable, moveable properties, real properties and any other properties or assets belonging to Dissolved Organizations, named in Appendix “A” hereto, and in addition thereto any other organization that falls under the purview of reference 1c above, is transferred to the Japanese Government.
5. The Japanese Government will institute an investigation and will recover: All excessive liquidation expenses, gifts, loans, transfers of monies, investments in successor organizations and grants made that are in excess of ¥10,000.00. The transfer of any assets, moveable and real properties through sale or otherwise, belonging to these organizations are herewith declared null and void and title to these properties will vest immediately in the Japanese Government. Sales of moveable properties authorized by General Headquarters, Supreme Commander for the Allied Powers, Civil Property Custodian, will remain valid and are therefore exempt from the provisions of this paragraph.
6. The Japanese Government is hereby further directed:
a. To dispose of all properties belonging to Dissolved Organizations through sale;
b. To designate a Sales Agency that will handle the sale of assets belonging to Dissolved Organizations. The Sales Agency so designated by the Japanese Government will be subject to the approval of General Headquarters, Supreme Commander for the Allied Powers, Civil Property Custodian;
c. That all agricultural land, agricultural equipment, agricultural buildings, and other agricultural property vested in the Japanese Government by this directive will be subject to the Agrarian Reform Program as provided in references 1f and 1g, above;
d. That properties and equipment belonging to Dissolved Organizations now being used by hospitals or schools will continue in such use;
e. That only such properties now being used for necessary official governmental purposes, will continue in such use and will not be sold. Dwelling houses now being used by Japanese Government officials will be sold to qualified applicants. The Japanese Government will submit to General Headquarters, Supreme Commander for the Allied Powers, Civil Property Custodian, within sixty (60) days from the date of this memorandum a complete report giving the address and type of property to be used for governmental purposes;
f. That the Japanese Government will not retain or sell any property selected for reparations or subject to restoration or restitution.
7. The Japanese Government is further directed that the following stipulations will govern the sale of these properties;
a. Properties will not be sold to former officials, directors or influential members of Dissolved Organizations referred to in reference 1c above. Sales will be confined to Japanese nationals only, unless otherwise directed by the Supreme Commander for the Allied Powers.
b. Prices for the sale of moveable properties will not be lower than inventory prices nor in excess of legal maximum prices at the time of sale;
c. All real property to be sold, except that specified in paragraph 6c above, will be on a sealed bid basis; sales will be made to the highest acceptable bidder;
d. All applications for the purchase of moveable properties and all sealed bids for the purchase of real property will be submitted to General Headquarters, Supreme Commander for the Allied Powers, Civil Property Custodian for prior approval;
e. All assets to be sold will be given wide publicity. The Sales Agency designated by the Japanese Government will formulate plans for the publicity to be given the sale of these properties. Plans will be submitted to General Headquarters, Supreme Commander for the Allied Powers, for approval.
8. The Japanese Government is further directed to submit for prior approval the payment of any liability that the Japanese Government has determined to pay out of the funds of Dissolved Organizations.
9. The Japanese Government is further directed to establish an account in the Bank of Japan to be known as the Foreign Trade Yen Accout. Monies now on deposit in the Custody Account of the Supreme Commander for the Allied Powers, Bank of Japan, to the credit of Dissolved Organizations will be transferred to the Foreign Trade Yen Account in the Bank of Japan. Upon the completion of this transfer a detailed report showing the amount transferred will be submitted to General Headquarters, Supreme Commander for the Allied Powers. Effective the date of this memorandum all future payments to the Custody Account of the Supreme Commander for the Allied Powers for credit to Dissolved Organizations’ account will be credited to the Foreign Trade Yen Account in the Bank of Japan. All proceeds derived from the sale of Dissolved Organizations’ properties will be credited to this acconnt.
10. Boeki-Cho is hereby authorized to utilize funds on deposit in the Foreign Trade Yen Account for the implementation of the Import-Export Program with preference to be given the purchase of newly mined precious metals in excess of approved domestic requirements. All disbursements made by Boeki-Cho out of this fund must have the prior approval of General Headquarters, Supreme Commander for the Allied Powers.
11. The Japanese Government is further directed to submit monthly reports commencing within sixty (60) days from the date of this memorandum to General Headquarters, Supreme Commander for the Allied Powers, Civil Property Custodian. These reports will be as of the close of business on the 20th day of each month and will be submitted not later than the 25th day of each month. These reports will include:
a. Type of property recovered, location, value, and from whom recovered;
b. Description of property sold, name and address of purchaser and the price received;
c. Statement of condition of the Foreign Trade Yen Account in the Bank of Japan showing in detail all income and expenditures.
12. Direct correspondence is authorized between the Civil Property Custodian, and the General Accounting Office, Supreme Commander for the Allied Powers, and the Sales Agency.

FOR THE SUPREME COMMANDER:

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

1 Incl
Appendix “A”