GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS
APO 500
24 June 1949
AG 091.31
(17 Jul 48)
ESS/FTC
(SCAPIN-2020)
JAPANESE GOVERNMENT. |
Purchase of Foreign Exchange Credits for the Purpose of Stimulating Exports |
1. Reference is Memorandum for the Japanese Government from General Headquarters, Supreme Commander for the Allied Powers, AG 386.7 (2 Feb 49) ESS/FIN, SCAPIN 1968, 2 February 1949, subject: Foreign Exchange Controls.
2. It is desired that the Japanese Government submit plans and procedures not later than 27 June 1949, to permit purchase of foreign exchange credits by exporters of Japanese goods in accordance with the principles outlined herein.
3. Exporters of Japanese goods (other than government agencies) will be permitted to purchase with yen foreign exchange credits resulting from any private export transaction in accordance with the following allowable percentages and commodity categories:
a. Category I (see Incl 1) -3%
b. Category II (see Incl 2) -6%
c. Category III (see Incl 3)-10%
In cases where a commodity is not listed under categories indicated above, separate prior approval of the Supreme Commander for the Allied Powers will be obtained for the right to purchase an appropriate percentage of foreign exchange credit resulting from the export thereof.
4. Foreign exchange retention credits may be available only as a result of transactions financed by Letters of Credit or remittances received from outside of Japan. Transactions financed through open accounts may be a source of such credits only if relative foreign government's concurrence is obtained and to the extent of such concurrence. Such retention credits as do result from open account transactions will be available only for and/or in the country with which the contract has been made.
5. Foreign exchange credits purchased by private exporters of Japanese goods may be used for the following purposes:
a. Travel and living expenses abroad of Japanese or foreign personnel sent abroad for the purpose of increasing Japanese trade and/or production.
b. Compensation for foreign agents merchandising Japanese goods.
c. Payment for sales promotion expenses.
d. The importation of such industrial raw materials, machinery, tools, or other items designed to maximize export production.
e. Purchase of credit information, samples, catalogs, and other trade publications.
f. Purchase of patent rights and services furnished by foreign technical and engineering consultants.
g. Other purposes as may be specifically approved by the Supreme Commander for the Allied Powers.
6. The establishment and operation of a system under which foreign exchange credits in the currency of the export contract are allowed under this memorandum will be implemented by the Foreign Exchange Control Board in accordance with reference 1 above. Such credits may be purchased subject to the following controls:
a. Rights of purchase will not be effective beyond a six (6) months' period.
b. Rights of purchase may be transferred only once and to not more than three persons within the chain of supply.
c. No foreign currencies or instruments negotiable within Japan will be made available to any person.
d. Such other safeguards as may be prescribed by the Supreme Commander for the Allied Powers.
7. Appropriate Japanese Government agencies will be designated to submit to the Supreme Commander for the Allied Powers for approval names of Japanese nationals requesting travel abroad under provisions of this memorandum subject to the following limitations:
a. The travel requested must be demonstrated to be confined to trade activities.
b. The individual concerned will not be acting as sole sales or purchasing agents for the Ministry of International Trade and Industry or for Japanese trade associations.
8. Direct communication among the Ministry of International Trade and Industry, designated agencies of the Japanese Government and interested staff sections of the General Headquarters of the Supreme Commander for the Allied Powers is hereby authorized to implement the instructions contained in the memorandum.
FOR THE SUPREME COMMANDER:
R.M. LEVY,
Colonel, AGD,
Adjutant General.
3 Incls as indicated
Inclosure 1.
CATEGORY I
1. METAL, MACHINERY &. INSTRUMENTS
a. Non-ferrous metals:
Mercury, Cadmium, Zinc, etc.
b. Ferro-alloys, alloy steel scrap
c. Coal
d. Vessels
e. Railway rolling stock
2. TEXTILES:
a. Cotton
(1) Yarn
(2) Grey goods
b. Silk
(1) Raw Silk
(2) Yarn
(3) Fabrics, greige and bleached
c. Rayon
(1) Staple fiber
(2) Yarn (Filament & spun rayon)
d. Woolens & Worsteds
(1) Yarn
(2) Tops
3. CHEMICALS & DRUGS:
a. Fertilizer
4. FARM AND MARINE PRODUCTS:
a. Mining timbers, railway-sleepers, telephone poles
5. IRON & STEEL PRODUCTS:
a. Alloy steel
b. Bars, ingots & billets
c. Bars, all shapes & types
d. Cast iron pipes
e. Rails
f. Sash bars
g. Seamless tube
h. Sheets (Plain & galvanized)
i. Wire rope
j. Structural shapes
Inclosure 2.
CATEGORY II
1. METALS, MACHINERY & INSTRUMENTS:
a. Textile Machinery
(1) Spinning, weaving, knitting, preparing & finishing machinery
b. Industrial machines
(1) Chemical machines
(2) Mining machines
(3) Printing & bookbinding machines
(4) Boilers
c. Agricultural machines
d. Electrical machines
(1) Generator and motor
(2) Transformer
(3) Turbine
e. Construction & conveying machines
f. Well & pumping machines
g. Food processing machines
h. Machine Tools
i. Metal products
(1) Semi-fabricated
(2) Cable
(3) Copper & copper alloy products
2. TEXTILES:
a. Cotton
(1) Fabrics: bleached, piece dyed, yarn dyed and printed
(2) Nets and netting
(3) Towels, toweling, blankets, blanketing, thread, sheets, pillow cases, handkerchiefs
(4) Knit fabrics
(5) Velveteen, Corduroys
(6) Rag rugs
b. Silk
(1) Fabrics: dyed and printed
c. Rayon
(1) All fabrics
(2) Scarfs
d. Woolens and worsteds
(1) All fabrics
(2) Blankets and rugs
e. Miscellaneous
(1) Linen yarn, twine and fabrics
(2) Ramie yarn, twine and fabrics
(3) Cordage
(4) Jute yarn, twine, fabrics & bags
3. SUNDRY GOODS:
a. Porcelain insulators, porcelain tile, porcelain sanitary ware
b. Paper
c. Automobile tires & tubes
4. CHEMICALS & DRUGS:
a. Caustic Soda, soda ash
b. Portland cement
5. FARM & MARINE PRODUCTS:
a. Tea
6. IRON & STEEL PRODUCTS:
a. Barbed wire
b. Conduit pipe
c. Nails
d. Rivets
e. Galvanized wire
f. Galvanized iron wire netting
g. Enamelled iron wire netting
h. Iron wood screws
Inclosure 3.
CATEGORY III
1. METALS, MACHINERY & INSTRUMENTS:
a. Light machinery
(1) Bicycles & parts
(2) Optical instruments:
(a) Binoculars
(b) Cameras
(c) Microscopes
(3) Communication equipment:
(a) Amplifying systems
(b) Radio receivers
(c) Radio transmitters
(d) Switch Boards
(e) Telephone sets
(f) Vacuum tubes
(4) Electric apparatus:
(a) Batteries
(b) Desk & reading lamps
(c) Fans
(d) Light bulbs
(e) Lighting fixtures
(f) Wire & wiring apparatus
(5) Gauges & Indicators:
(a) Ammeters, barometers, magnetic volt meters
(b) Scales
(6) Photographic equipment: (roll-film, sensitized paper)
(7) Medical instruments:
(a) Surgical instruments
(b) Injection needles
(c) Clinical and household thermometers
(d) X-ray equipment (film-hangers, portable X-ray apparatus, X-ray film and others)
(8) Wire netting (brass, copper)
(9) Agricultural goods and machines:
(a) Hand type cultivators
(b) Hoes
(c) Hand type plows
(d) Sickles
(e) Spades
(10) Carpenter Tools:
2. TEXTILES:
a. Cotton
(1) Apparel and household goods (except towels, blankets, sheets, pillow cases, handkerchiefs, and rag rugs)
b. Silk
(1) Apparel and household goods (except scarfs)
c. Rayon
(1) Apparel and household goods (except scarfs)
d. Woolens and worsteds
(1) Apparel and household goods (except blankets and rugs)
e. Miscellaneous
(1) All other textiles and textile products
3. SUNDRY GOODS:
a. Porcelain ware (except porcelain insulators, porcelain tile and porcelain sanitary ware)
b. Glass & glass ware
c. Enamel ware
d. Agricultural implements
e. Musical instruments
f. Metallic goods:
(1) Cast iron goods
(2) Aluminum ware
(3) Antimony ware
(4) Sewing needles
(5) Galvanized bucket
(6) Metal leaf
(7) Metal powder
(8) Cutlery
(9) Hand tools
(10) Smoking articles
g. Fountain pens & pencils
h. Motion pictures
i. Bamboo & bamboo ware
j. Paper goods
k. Leaf-tobacco
l. Brushes
m. Matches
n. Fishing guts and fishing hooks
o. Imitation pearls
p. Buttons
q. Foot wear
r. Umbrellas
s. Papier-mache tray
t. Fans & lanterns
u. Incense
v. Art & curios (including lacquer ware, etc.)
w. X’mas lamps & miniature electric lamps
x. Toys
y. Artifical flowers
4. CHEMICALS & DRUGS:
a. Chemicals (except fertilizer, caustic soda, soda ash and Portland cement)
b. Medicines
c. Celluloid goods (including celluloid sheets)
d. Rubber goods (except auto tires & tubes)
e. Leather goods
5. FARM & MARINE PRODUCTS:
a. Dried Aquatic Products:
Sharksfin, Cuttle-fish, Scallops Abalone, Seaweed, Kazunoko, Dried-slugs, Agar-agar
b. Aquatic products:
Seed oysters, Frozen goods, Fish liver oil (Vitamin A & D. Natural Coral tree, Living fish)
c. Miscellaneous Foods:
Japanese pickle, miscellaneous food & drink, ajinomoto
d. Agricultural products:
Fruits, bulbs, vegetable-wax, chillies, persimmon juice, seed, menthol crystals, peppermint oil, refined camphor, illes-illes flour, onion
e. Hard-wood lumber, flooring, plywood chest
f. Furs (including angora-wool)
g. Canned goods
MEMO FOR RECORD: (SCAPIN - 2020)
RWH/JMC/yy
3 June 1949
1. Reference is Memorandum for Chief of Staff, 3 June 1949, subject: Stimulation of Japanese Exports, requesting approval of the attached SCAPIN.
2. Concurrences: ESS/TEX; ESS/FC; ESS/FIN
J. M. Capron - 26-8593
R. W. H.
