MEMO FOR RECORD: (SCAPIN - 2067)
JRA/JCS/WNR/GPW/CDY/yy
1 December 1949
1. Memorandum from MOFA, FOM No. 955 (FIM) dated 27 Sep 45, subject: Application for Release of Segregation and Custody of Foreign Exchange Assets Pursuant to the Imperial Ordinance No. 656 of 1945, forwarded an application from MOF requesting:
a. Authority to release foreign exchange assets now held by financial institutions in Japan to the liquidators in Japan of branches of companies whose head offices are located in areas formerly occupied by Japan, and;
b. The rescission of SCAPIN referred to in paragraph 2 below.
2. SCAPIN 96 dated 6 Oct 45, subject: Reports of Foreign Exchange Assets and Related Matters, required all financial institutions in Japan to physically segregate all foreign exchange assets held by them and not to remove such assets without SCAP permission. (Imperial Ordinance No. 656 of 1945 implemented this SCAPIN).
3. SCAPIN 45 dated 22 Sep 45 prohibits without prior approval of MOF and SCAP all transactions in foreign exchange. (Imperial Ordinance No. 88 of 1945 implemented this SCAPIN).
4. The release of foreign exchange assets now held by financial institutions to the liquidators of branches in Japan of companies whose head offices are located in areas formerly occupied by Japan is considered necessary to facilitate such liquidations. Further, it is considered that the segregation of foreign exchange assets required by SCAPIN 96 is no longer necessary, and that other SCAPINs now in force offer sufficient control over foreign exchange assets in Japan.
5. The attached SCAPIN rescinds SCAPIN 96. Accordingly, as requested by memorandum referred to in paragraph 1 above, financial institutions in Japan are no longer required to segregate foreign exchange assets and such assets may be released to the liquidators of branches in Japan whose head offices are located in areas formerly occupied by Japan.
6. Upon issuance of the attached SCAPIN MOFA will be informed accordingly.
7. Concurrence: CPC ( )
C. D. Yoemans
J. R. A.