GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

APO 500
13 July 1949

AG 463.7 (13 Jul 49) ESS/IND
(SCAPIN-2027)

MEMORANDUM FOR	JAPANESE GOVERNMENT.
SUBJECT	Operation of Pacific Coast Refineries and Import of Crude Petroleum.

1. The following Memoranda for the Japanese Government from General Headquarters, Supreme Commander for the Allied Powers, are hereby rescinded:
a. AG 463.7 (13 Oct 45) ESS, SCAPIN 134, subject: Petroleum Refineries, 13 October 1945.
b. AG 463.7 (21 Jan 46) GD, SCAPIN 640, subject: Crude Oil Imports, 21 January 1946.
c. AG 096 (27 Sep 46) ESS/IN, SCAPIN 1236, subject: Pacific Coast Oil Refineries, 27 September 1946.
d. AG 004 (14 Dec 46) ESS/IN, SCAPIN 1404, subject: Pacific Coast Oil Refineries, 14 December 1946.
2. Repair and rehabilitation of the Pacific Coast Refineries, excluding ex-military refineries, will be permitted subject to approval by the Supreme Commander for the Allied Powers. Plans for repair and rehabilitation of each refinery desired by owner and approved by Japanese Government with a consolidation thereof, will be submitted to General Headquarters, Supreme Commander for the Allied Powers, within 90 days after receipt of this memorandum, and will specify:
a. Complete identification of each plant.
b. Description of contemplated repairs in detail.
c. Amount of materials and additional equipment required.
d. Source and availability of such materials and equipment required.
e. Time required for repairs.
f. Cost of repairs, including new materials, equipment and labor.
g. Type of crude petroleum to be refined in each plant and proposed operating capacity.
h. Products Proposed to be manufactured, with approximate individual and total percentage.
3. In approving any rehabilitation it should be understood that maximum utilization will be made of materials and equipment available in Japan. Consideration by General Headquarters, Supreme Commander for the Allied Powers, will be given to applications for imports of materials and equipment only when accompanied by complete justification therefor. Careful consideration should be given by the Japanese Government to pooling existing equipment and facilities for maximum efficiency. The removal, disposal, alteration, or conversion of any equipment in reference refineries is not authorized without prior approval by the Supreme Commander for the Allied Powers.
4. Construction of additional refineries will not be considered at this time.
5. Importation of crude petroleum will be considered by the Supreme Commander for the Allied Powers dependent upon the merits of individual offers.
6. The provisions of this memorandum do not supersede in any manner existing memoranda to the Japanese Government except those noted in paragraph 1.
7. Direct communication between the Economic and Scientific Section, General Headquarters, Supreme Commander for the Allied Powers and the Japanese Government is authorized.

FOR THE SUPREME COMMANDER:

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