GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

APO 500
2 September 1948

AG 544 (27 Jul 48) CTS
(SCAPIN-1931)

MEMORANDUM FOR	JAPANESE GOVERNMENT.
SUBJECT	Japanese Merchant Shipping

1. References:
a. SCAPIN 256 of 9 November 1945, file AG 334, subject, “Appointment of Civilian Merchant Marine Committee.”
b. SCAPIN 1828 of 26 November 1947, file AG 545, subject.
“Sale or Charter of Japanese Merchant Vessels.”
c. Commander Naval Forces Far East serial letter 1778 of 16 June 1948, file CNFE/A4 - 3, subject, “Japanese vessels; assignment of SCAJAP number and issuance of Certificates of Operation.”
d. Commander Naval Forces, Far East serial letter 1782 of 16 June 1948, file CNFE/A4 - 3, subject, “Operation of Vessels under the Supervision of the Administrator, SCAJAP.”
2. This directive does not modify or supersede references in paragraph 1, nor shall it be interpreted as changing existing policy previously announced as follows:
a. All vessels assigned to repatriation will be retained in that service under the operational and administrative control of the Administrator, Shipping Control Authority Japanese Merchant Marine (SCAJAP), through Civilian Merchant Marine Committee.
b. The assignment of merchant vessels and present booking procedures now in effect shall continue as heretofore.
3. In order to increase the utilization of Japanese merchant fleet, the following revisions in procedures will be effected by the Japanese Government:
a. The Japanese Government through its Ministries and various agencies will exercise operational control of all vessels to which complete title is held by the Japanese Government, designed and engaged exclusively in the following special services of the Government: fishery patrol, fishery research, fishery training, cable layers, weather service, training, sewage, tugs, salvage, dredger, ice-breaker, and police patrol. Expansion of these categories shall be subject to prior approval of Commander Naval Forces, Far East. This operational control will include manning, supply, and husbandry of the vessels. The Ministry of Transportation will be responsible for reporting any change in charter, characteristics, title, and operational status of these vessels in accordance with requirements set forth in reference 1b.
b. Respective private owners will operate all vessels designed and engaged exclusively in the following special services: salvage, tug, dredger, sewage, hopper, barge, passenger ferry, utility, floating crane and floating dock. Expansion of these categories shall be subject to prior approval of Commander Naval Forces, Far East. The Master or Owner will be responsible for reporting any change in charter, characteristics, title and operational status of these vessels to the Ministry of Transportation.
c. Respective private owners, under the immediate supervision of the Fisheries Agency, Ministry of Agriculture and Forestry, may operate all vessels over 100 gross tons employed exclusively in fishing and whaling service. The Director, Bureau of Fisheries shall report any change in the charter, title or operational status to the Ministry of Transportation.
d. The Civilian Merchant Marine Committee will employ on a time charter basis under the direction of the Administrator, SCAJAP, all steel vessels over 100 gross tons not mentioned in sub-paragraphs 3a through c above.
e. Through the Civilian Merchant Marine Committee, vessels referred to in sub-paragraphs 3a, b, c and d above will be subject to the administrative control of the Administrator, SCAJAP.
f. The Ministry of Transportation will collect, compile and submit such reports as may be required.
4. Revisions listed above have been prepared with a view to:
a. Providing for the most efficient means of vessel operation.
b. Giving full benefit to the national economy.
c. More fully utilizing the skills and capabilities of the shipping industry.
d. Increasing the lifting capacity of the present fleet:
e. Reducing the deficit in Japanese Government operation.
5. To permit orderly and gradual return of operating responsibilities for Japanese merchant fleet and miscellaneous craft to normal channels as outlined above, direct communication in implementation thereof is authorized between Civil Transportation Section, General Headquarters, Supreme Commander for the Allied Powers, Commander Naval Forces, Far East, (Administrator, Shipping Control Authority Japanese Merchant Marine) and the Japanese Government.

FOR THE SUPREME COMMANDER:

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