GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

APO 500
31 March 1948

AG 400.12 (31 Mar 48) CE-GD
(SCAPIN-1872)

MEMORANDUM FOR	JAPANESE GOVERNMENT.
SUBJECT	Expenditures from Funds Appropriated for Occupation Force Requirements.

1. Rescission. Supreme Commander for the Allied Powers Memorandum for Japanese Government, AG 400.12 (27 Aug 46) GD, SCAPIN 1160, subject, “Procurement Demand Procedure”, dated 27 August 1946 is rescinded.
2. It is the purpose of this memorandum to define and limit the instruments which constitute authority to expend funds appropriated by the Japanese Government to meet the requirements for support of the occupation forces as differentiated from those funds appropriated to meet requirements for compliance with directives iesued by the Supreme Commander for the Allied Powers for the benefit of the Japanese people, to carry out the terms of surrender, or to otherwise accomplish the purpose of the occupation,
3. Requirements for support of the occupation forces are transmitted to the Japanese Government by means of “Procurement Instrument”, which, when applicable, include items mutually beneficial to the Japanes people and the occupation forces. The term “Procurement Instrument”, as used herein refers to any one of the following three instruments only and used herein refers to any one of the following three instruments only and does not refer to “SCAPINS”, “Letter Directives”, or “Work Orders”:
a. Procurement Demand, GPA Form 1. The Eighth United States Army is the only authorized agency to issue these demands. The method of issue is as prescribed by the Commanding General, Eighth Army. Except for limted purposes as defined in sub-paragraphs b and c below, the Procurement Demand, GPA Form 1, is the only instrument authorized for procurement of real estate, construction, rehabilitation, maintenance equipment, services supplies, or any other requirement for the support of the occupation forces. Acknowledgment of accomplishment of Procurement Demands (GPA Form 1), in whole or in part, is indicated by receipt on GPA Form 2.
b. Comunications Order, GPA Form 8. This is a special form of Procurement Instrument served on the Japanese Government through the Japanese Bureau or Ministry of Communications through the designated Signal representative of the Supreme Commander for the Allied Powers or Commanding General, Eighth Army, for the procurement of communications services, materials, equipment, technical personnel and construction incident to installation, maintenance or operation of communications equipment. It will not be used for construction, maintenance or acquisition of buildings, real estate (except cable or wire right of ways), water, heat, power or sewage, as such. Acknowledgment of accomplishment of Communications Orders (GPA Form 8), in whole or in part, is indicated by receipt on GPA Form 5.
c. Labor Requisition, Labor Form 1. This is a special form of Procurement Instrument for labor required by the occupation forces, but not included in requirements stated in Procurement Instruments, GPA Forms 1 and 8. The Eighth United States Army is the only authorized agency to issue these requisitions. The method of issue is as prescribed by the Commanding General, Eighth Army. Acknowledgment of accomplishment of Labor Requisition (Labor Form 1), in whole or in part, is indicated by certification of Unit Labor Officer.
4. Procurement of utilities, services, and maintenance, and plant or operating facilities necessary to provide utilities or services as demanded will be accomplished as follows;
a. Utilities and Services.
(1) Procurement Instrument and receipts for utilities or services, including public carrier and communications services, will be executed for only the utility or service.
(2) The acquisition of special additional plant, equipment, and real estate, and the construction or rehabilitation and maintenance of structure and equipment as may be required in connection with a service or utility furnished by the Japanese Government to meet a requirement for the occupation forces will be covered by separate and specific procurement instruments. (See sub-paragraph (3) below).
(3) Procurement instruments issued under the provisions of paragraph 4a (2) above are only issued to the extent that the existing facilities, which are available to the agent of the Japanese Government, are inadequate to provide the utilities or services required.
b. Maintenance.
All maintenance of equipment, structures, roads and other facilities performed by the Japanese Government in response to an occupation force requirement will be covered by a specific procurement instrument (GPA Form #1 or GPA Form 8) or by properly executed work orders issued against an appropriate procurement instrument, approved and issued for a specific facility, area or service. Acknowledgment of accomplishment of maintenance will be made on GPA Form 2 or GPA Form 5, as appropriate.
5. Instructions which are not to be considered “Procurement Instruments”, though relating to procurement for support of the occupation forces, include the following:
a. MEMORANDUM FOR JAPANESE GOVERNMENT (SCAPIN).
In those cases where SCAPINS direct procurement for the support of the occupation forces, they are followed by procurement instruments covering such procurement. For those cases where SCAPINS do not direct procurement for the support of the occupation forces, see paragraph 8 below.
b. LETTER DIRECTIVES issued by Commanding General, Eighth United States Army. Such letters are applicatory to procurement instruments issued, or to be issued, and include the following:
(1) Directions for advance procurement of materials and equipment required for all maintenance and for the construction of dependent housing projects.
(2) Authorizations for advance payments to contractors up to 30% of total estimated cost of contract price.
(3) Acknowledgment of accomplishment of directions or authorizations included in 5b (1) and (2) above, will be as directed by the Commanding General, Eighth United States Army.
c. WORK ORDERS. Work orders are applicatory to a specific procurement instrument. Receipts for work orders are accomplished by full receipts or partial receipts on GPA Form 2, GPA Form 5 or labor form which covers the procurement instrument under which the work order was issued.
6. Effective as specified below, no payments may be made from Japanese Government funds appropriated to meet the requirements for support of the occupation forces, except when those requirements are covered by one of the three procurement instruments specified in paragraph 3 above, or by one of the letter directives described in paragraph 5b (1) and 5b (2) above, and then only to the extent that accomplishment of such procurement has been acknowledged, as provided in paragraph 3a, 3b, 3c, and 5b (3) above, for those instruments.
a. Effective 15 April 1948 provisions of this paragraph are applicable toall procurement accomplished after that date, but do not apply to procurement previously accomplished for which payment has not yet been made.
b. Effective 1 July 1948 provisions of this paragraph are applicable to all procurement, regardless of date of accomplishment.
c. Nothing included herein will be interpreted as affecting yen funding arrangements.
7. In all cases of deviation from the above procedures, immediate report will be rendered to the Supreme Commander for the Allied Powers. A full report, listing all pertinent details, will be rendered as soon as the facts are available. A copy of each immediate report and each full report will be rendered the Commanding General, Eighth United States Army.
8. Directives issued by the Supreme Commander for the Allied Powers for accomplishment of work or projects which are for the benefit of the Japanese People, or to carry out the terms of surrender, or to otherwise accomplish the purposes of the Occupation, are or will be issued in the form of memoranda to the Japanese Government (SCAPINS). The implementation of these directives will be under the surveillance of occupation forces and Military Government agencies charged with such surveillance by the Supreme Commander for the Allied Powers. No form of procurement instrument will be issued to cover these requirements and receipts will not be given for supplies or services necessary for their accomplishment. Payments will not be made from Japanese Government funds pursuant to directives from the Supreme Commander for the Allied Powers, unless such payments are fully justfied by the provisions of the original SCAPIN, by implementing instructions issued by those occupation force agencies charged with surveillance or by a plan submitted by the Japanese Government and approved by the Supreme Commander for the Allied Powers.
9. The Commanding General, Eighth United States Army, or his designated representative, has been designated as the occupation force agency to make periodic examination of Japanese expenditures to ensure compliance with the provisions of this memorandum.

FOR THE SUPREME COMMANDER:

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