SCAPIN-1894: RESPONSIBILITIES OF THE JAPANESE GOVERNMENT FOR THE PACKAGING, TRANSFER AND DELIVERY OF EQUIPMENT AND RECORDS ALLOCATED TO CLAIMANT NATIONS UNDER THE REPARATIONS PROGRAM

GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

APO 500
14 May 1948

AG 387.6 (14 May 48) ESS/AC
(SCAPIN-1894)

MEMORANDUM FOR

JAPANESE GOVERNMENT.

SUBJECT

Responsibilities of the Japanese Government for the Packaging, Transfer, and Delivery of Equipment and Records Allocated to Claimant Nations Under the Reparations Program

1. Reference Memorandum for the Japanese Government from General Headquarters, Supreme Commander for the Allied Powers, AG 387. 6 (22 Jul 47) REP, SCAPIN 1751, 22 July 1947, subject: Responsibilities of the Japanese Government for the Packaging, Transfer, and Delivery of Equipment and Records Allocated to Claimant Nations Under the Reparations Program.
2. In order to effect closer cooperation and coordination between Japanese Governmental agencies and Occupation agencies involved in the removal of reparations equipment, it is desired that the following division of responsibilities be as indicated:
a. The Reparations Board will be responsible for the overall coordination and planning for the Japanese Government of all removals of reparations equipment and for the establishment of policies relating to such removals.
b. The Special Procurement Board will be responsible for the contracting of services to effect removals of reparations equipment, for the furnishing of adequate materials and special equipment to successful contractors, and for the payment of all expenditures incurred in such removals. This responsibility will include the issuance of bid invitations, prequalification of contractors within established standards, awarding of contracts, issuance of bid abstracts and execution of contracts. The Special Procurement Board will be further responsible for the processing of special reports as required pertaining to the status of reparation removals.
c. The Japanese Government ministly directly concerned with the removal of any specific reparations plant or equipment will be responsible for maintaining and effecting custody of such plants and equipment; reviewing and making recommendations on issued bid invitations, issued bid abstracts and executed contracts; supervising the physical execution of the contract; and certifying for the Japanese Government the correctness of quantity and quality of materials, labor, and equipment shown on contractor’s bill submitted. These responsibilities will include continuing constant inspection of the work performed, certifying as to the quality of the work performed, and preparing and submitting such reports as may be required. In addition, the ministry concerned will be responsible for the preparation of engineering and technical data as may be required.

FOR THE SUPREME COMMANDER:

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

MEMORANDUM FOR: General W. F. Marquat, Chief, Economic and Scientific Section 22 April 1948
(SCAPIN - 1894)
SUBJECT Proposed SCAPIN Outlining the Responsibilities of the Japanese Government with Regard to Reparations and Packaging
1. In accordance with SCAPIN 1751, which outlines the general responsibility of the Japanese Government with regard to reparations packaging, the Reparations Board of the Japanese Government submitted a proposed procedure to the Reparations Section and to ESS which would have established a Reparations Council to be responsible for the awarding of contracts and the implementation of the program for reparations packaging. The proposed procedure was, in fact, already in operation.
2. While Reparations Section had no objection to the procedure, ESS took exception on the basis that the procedure did not provide for the operation to be within the framework of the Japanese governmental structure and that the agencies that were to undertake the operation had no public responsibility or accountability. It was, therefore, suggested that the Special Procurement Board, which was initiated at the request of ESS to control Occupation procurement, be assigned the responsibility. Reparations Section had no objection to the proposal (reference Informal Memo to Mr. Hiroo Wada, dated 28 January 1948, subject: "Packaging of Reparations Equipment, M in which concurrence was received from Reparations Section). Since the proposal means a substantial shift in the plans of the Japanese Government and the elimination of a rather substantial non-governmental organization which is now in existence in the form of an Arms Disposal Committee, the Japanese have insisted on specific instructions as to the method of implementation of the above memorandum. The reputation of the Arms Disposal Committee, as outlined in the Memo for Record, is extremely poor, both in terms of economy of operation and in terms of past affiliation of their personnel, but the head personnel of the organization are quite influential.
3. The proposal has been reviewed in detail by members of the Reparations Section and by General Harrison and the precise wording of the SCAPIN has been modified in accordance with their requests. However, they have maintained the position that the system to be used by the Japanese Government in carrying out this responsibility is not their primary interest. If ESS wishes to modify the existing system and to use the Special Procurement Board, ESS must take responsibility for such modification. Because of the interest of ESS in eliminating the Arms Disposal Committee and in effecting economy in governmental operation, ESS has taken the initiative in this matter.
4. Action on the situation is urgent since the first reparations program has been completed and a second program is being initiated. It is desirable that the instructions given the Japanese be clarified prior to the initiation of the second program.
/s/t/ EDWARD C. WELSH
Chief, Antitrust and Cartels Division