GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

APO 500
6 November 1948

AG 676.3 (6 Nov 48) CCS
(SCAPIN - 1940)

MEMORANDUM FOR	JAPANESE GOVERNMENT.
SUBJECT	Establishment and Operation of Radiotelegraph Circuit Between Osaka, Japan and Shanghai, China.

1. Reference is made to memorandum for the Japanese Government, file AG 676.3 (27 May 47) CCS, SCAPIN 1707, dated 27 May 1947, subject: Establishment and Operation of Direct Telecommunications Circuits Between Tokyo and Manila, as amended.
2. It is directed that a radiotelegraph circuit be established and operated between Osaka, Japan and Shanghai, China, beginning at 0001 hours, 15 November 1948, in accordance with the provisions herein set forth.
3. The radio terminal in Japan will be operated by the Ministry of Communications on a forked circuit basis using the same transmitting frequencies authorized for use on the radiotelegraph circuit from Osaka to Hong Kong. The radio terminal in China will be under the control of the Chinese Ministry of Communications, which will coordinate the frequencies required for use from China to Japan.
4. Message classifications authorized between Japan and China are:
Full rate NLT/DLT
CDE Press
LC Government
5. Rates for messages exchanged between Japan and China will be established in gold francs which will be converted into U. S. dollar currencies using a ratio of 3.06l gold francs equals one U. S. dollar ($1.00). Based upon the foregoing, the gold franc rates together with the equivalent U. S. dollar rates per word for the classifications authorized, also the division of revenue between the Japanese Government and the Chinese administration, are shown in inclosure 1.
6. All classes of messages will be prepaid at the point of origin. Prepaid reply (RP) messages will not be admitted for the present. The provisions of SCAPIN 1707, pertaining to acceptance of and settlement for United States Government messages from Japan to the Philippines, will apply equally to the acceptance of and settlement for United States Government messages from Japan to China.
7. Currencies to be used for payment of charges for messages from Japan to China via the Osaka-Shanghai circuit will be United States Military Payment Certificates or Foreign Trade Payment Certificates.
8. Messages exchanged between Japan and China will be subject to all applicable censorship rules and regulations of General Headquarters, Supreme Commander for the Allied Powers. Exceptions thereto will be only as specifically provided for by General Headquarters, Supreme Commander for the Allied Powers.
9. Plain language messages from Japan to China are restricted to the following languages: Chinese, English, French, Japanese, Korean, Portuguese, Russian, Spanish.
10. The Chinese Mission in Japan agrees to designate a transfer agent in Japan to act for the Chinese Ministry of Communications in the manner indicated below.
11. The Japanese Ministry of Communications and the Chinese administration will keep full and complete records of all telegrams sent and received between Japan and China via the Osaka-Shanghai circuit, in the same manner as for other international radiotelegraph circuits. Monthly traffic and accounting statements for telegrams sent and received between Japan and China via the direct Osaka-Shanghai circuit may be exchanged directly between the Japanese Ministry of Communications and the Chinese transfer agent in Japan. The Japanese Government, Ministry of Communications, will submit traffic and accounting records pertaining to this circuit to General Headquarters, Supreme Commander for the Allied Powers, in the same manner required in the case of other international radiotelegraph circuits from Japan.
12. The Japanese Government, Ministry of Communications, will deposit monthly, not later than fifteen (l5) days after the close of each calendar Allied Powers, all funds collected in Japan in payment of the charges for prepaid messages sent over this circuit from Japan, under authority contained in this memorandum.
13. Payment of balances due either administration will be accomplished on a quarterly basis and will consist of the United States dollar equivalent of the gold franc net amount, including any necessary adjustments, due either administration for the preceding quarter.
14. In the event revenue due to the Chinese administration is not offset by revenue accruing to Japan from charges collected in China, balances due to the Chinese administration will be paid to the Chinese administration through the Chinese transfer agent by General Headquarters, Supreme Commander for the Allied Powers from deposits made in accordance with paragraph 12 above. Balances in favor of the Japanese Government, Ministry of Communications will be deposited by the Chinese administration or its representative in an appropriate account to be designated by the Supreme Commander for the Allied Powers.
15. Direct communication between the Civil Communications Section, and other staff sections of General Headquarters, Supreme Commander for the Allied Powers and the Ministry of Communications, regarding operating, accounting, and settlement procedures within the scope of this memorandum, is authorized.

FOR THE SUPREME COMMANDER:

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

1 Incl
Rates and Division of Revenue
(See reverse for incl)