MEMO FOR RECORD: (SCAPIN - 1983/1)
WFM/ECW/JR/jm
11 April 1949
1. Reference is SCAP Memo AG 004 (10 Mar 49) ESS/AC, SCAPIN 1983, subject: Regulations Affecting Restricted Concerns.
2. The purpose of the reference memorandum was to combine and collate those portions of five SCAPINs which were still operative and which formed the basis of Imperial Ordinance 657 of 1945 regulating the activities of Restricted Concerns. This collation was a further step in the program of removing and simplifying controls over Restricted Concerns, prior action having been taken to rescind the requirement that approval be obtained for all acts performed outside the normal course of business.
3. In the drafting of the reference memorandum, the provision of the collated SCAPINs requiring prior SCAP approval for the following acts was unintentionally omitted: transfer for business, dissolution, alteration of articles of incorporation relative to change in amount of capital or otherwise altering the rights of stockholders, distribution of profits or surplus funds, flotation of debentures and transfer of securities of Restricted Concerns whose share capital exceed ¥5,000,000. Imperial Ordinance 657 of 1945 still requires prior approval of the Minister of Finance.
4. The purpose of the subject SCAPIN is to amend SCAPIN 1983 by restoring this omission in drafting. It is essential that this correction be made in order to conform to the reference memorandum with existing practice and to establish a sound basis for requiring action by the Japanese Government to prosecute violations of Imperial Ordinance No. 857. Careful consideration has been given to the possibility of handling this matter with the Minister of Finance on an informal basis but it has been concluded that this method of SCAP supervision will be neither satisfactory nor feasible.
5. This is an administrative matter and no surveillance by the Eighth Army is required.
6. No concurrences required.
Joseph Rand - 25-6597
E. C. W.