GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

APO 500
18 January 1949

AG 602 (17 Nov 48) CPC/FP
(SCAPIN-1965)

MEMORANDUM FOR	JAPANESE GOVERNMENT.
SUBJECT	Liquidation of Property in Japan of Branches of Companies with Head Offices Outside Japan.

1. Reference is made to memorandum for the Japanese Government, file AG 130 (22 Sep 45) ESS, SCAPIN 45, 22 September 1945, subject, “Control of Financial Transactions,” from General Headquarters, Supreme Commander for the Allied Powers.
2. Notwithstanding the terms of reference one (1) above, the Japanese Government is directed to establish necessary procedures to effect the liquidation of all property in Japan of companies with head offices in areas formerly occupied by Japan. Property in which less than ten percent (10%) Japanese interest is involved is excluded from provisions of this memorandum.
3. In effecting such procedures, the Japanese Government will appoint a competent official of the branch in Japan of the company as a liquidator for such property. If such official is not available, the Japanese Government may go outside the branch to appoint a liquidator. This liquidator will be charged with the duty of promptly carrying out and completing such liquidation under the procedures established by the Japanese Government. No sale of any assets will be made by the liquidator without the prior approval of the Japanese Government, Ministry of Finance and General Headquarters, Supreme Commander for the Allied Powers.
4. Each liquidator will be required to submit, within ninety (90) days from the date of his appointment, the following information:
a. A complete report of all claims submitted, subdivided into the following categories:
(1) Claims in Japan and from abroad secured by liens on assets in Japan
(2) Claims in Japan and from abroad arising out of business transactions with branches or agencies in Japan (excluding head office or inter-branch claims)
b. A complete inventory of all assets in Japan which will reflect both the book value and the current value of the items listed. Two (2) copies of all the above data will be forwarded to General Headquarters, Supreme Commander for the Allied Powers, Civil Property Custodian upon receipt by the Japanese Government.
5. The Japanese Government, Ministry of Finance will be responsible for the correctness of all report.
6. Each liquidator upon submission of the information required in paragraph 4 above will also submit a schedule covering proposed procedures for payment of all claims. No claims, however, will be paid without the prior approval of the Japanese Government, Ministry of Finance and of General Headquarters, Supreme Commander for the Allied Powers.
7. Direct communication is authorized between General Headquarters, Supreme Commander for the Allied Powers, Civil Property Custodian and the competent Ministries of the Japanese Government in carrying out this directive.

FOR THE SUPREME COMMANDER:

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

1 Incl: (For addressee only)
List of Companies with Head Office Abroad (in trip)