MEMO FOR RECORD: (SCAPIN - 2103)
8 June 1950
HBG/WT/mib
1. References are:
a. SCAPIN 393, 5 December 1945, subject: Use of Maizuru and Ominato Navy Yards for Repair of Japanese Merchant Shipping and Vessels Engaged in Minesweeping.
b. SCAPIN 451, 15 December 1945, subject: Reactivation of Facilities at Kure Navy Yard.
c. SCAPIN 741, 16 Feb 46, subject: Reactivation of Facilities at Sasebo Navy Yard.
2. Reference (a) authorizes the re-activation of those facilities at the Maizuru and Ominato ex-naval shipyards which can be utilized for the repair of Japanese merchant ships and those engaged in minesweeping and such repairs to Occupation Forces' vessels as may be required. Reference (b) authorizes the re-activation of those facilities at the Kure ex-naval shipyard which can be utilized for the salvage, maintenance and repair of Japanese merchant ships and de-militarized naval vessels. Also, to carry out scrapping operations to the Japanese ex-naval vessels and establish a scrap center to accomplish salvage of useable parts of ships in the vicinity which may be beyond repair. Reference (c) authorizes the reactivation of those facilities of the Sasebo ex-naval shipyards which can be utilized for the maintenance and repair of merchant and de-militarized naval vessels and vessels of the Occupation Forces. Also, such salvage and scrapping operations as may be directed of Japanese ex-naval vessels and salvage of Japanese merchant ships.
3. At the cessation of hostilities, the Japanese merchant fleet was almost completely destroyed and a portion of the shipbuilding industry was heavily damaged by bombing. In order to provide necessary transportation and carry out repatriation and minesweeping programs, efforts were immediately directed to the rehabilitating of as many Japanese merchant vessels as possible in the shortest period of time. Every shipbuilding facility in Japan that was useable was pressed into service to salvage and repair Japanese merchant vessels, convert de-militarized Japanese ex-naval vessels into various types of merchant ships and scrap Japanese ex-naval war ships. The commercial yards were not capable then of handling all of this work and so the ex-naval yards were re-activated to assist in salvage, repair and scrapping operations. At the present time, practically all scrapping operations are completed and the majority of the Japanese merchant ships have been returned to service or scrapped. The commercial yards are again in a position to handle the present and projected future requirements of the Japanese economy. The ex-naval yards have continued in operation and are now competing with commercial yards for salvage and repair work. As a means of bolstering the economy in the areas where these ex-naval yards are located, efforts are being directed by SCAP to convert these facilities in the ex-naval yards to other types of peaceful industry such as the manufacture of textiles, furniture and such commodities that would in no way be associated with the shipbuilding industry. The major facilities of these ex-naval yards which cannot be converted and which are in competition with the commercial yards should either be closed or limited to the following activities:
a. Repairs to Occupation Ships.
b. Such scrapping operations that may remain.
c. Completion of repairs to restitution ships.
d. Minor repairs to Japanese ships.
e. Emergency repairs to foreign flag merchant vessels.
4. Consideration has been given to the geographic location of the yards and the amount of work they have been doing for the Japanese merchant fleet and also the requirements of Occupation vessels.
a. Ominato ex-naval shipyard, located at the northern end of Honshu, has practically no Occupation work, and very little repair or salvage work for the Japanese merchant fleet.
b. Maizuru ex-naval shipyard, located on the west coast of Honshu, is still doing some restitution and repair work within the area. Salvage operations are almost completed, and there is almost no work required for Occupation vessels. This is the only major shipyard on the west coast of Honshu capable of making drydock repairs to vessels over 5,000 G. T. The port of Maizuru has also gained in importance as a port of call commercially since the end of the war and has been used extensively as the port for repatriation of prisoners of war from Russia.
c. Kure ex-naval shipyard is located in the south-western part of the Inland Sea near Hiroshima. This yard has been engaged in extensive scrapping operations of Japanese ex-naval vessels, salvage and repair of Japanese merchant ships and repair of Occupation vessels. Scrapping of the ex-naval vessels has been completed. Salvage and repair of demilitarized ships is practically completed and the Occupation does not require the use of this yard. It is pointed out that because of the low rental paid the Japanese Government the operators of the yard are in a position to undercut commercial yards for salvage and repair work. There are several shipyards in this area which are now capable of handling indigenous requirements and any emergency repairs to foreign flag merchant ships if and when the Kure ex-naval yard is closed.
d. Sasebo ex-naval shipyard is located on the west coast of Kyushu Island and has been engaged in extensive scrapping operations of Japanese ex-naval vessels, repairs to repatriation ships, maintenance and repair of Occupation ships, and repair of Japanese merchant ships. Scrapping operations in this yard have been completed, and the use of the port of Sasebo for repatriation purposes is over. The port has, however, gained commercially since the end of the war and because of the strategic location Sasebo ex-naval yard is used for the maintenance and repair of Occupation ships which are operating in the area. This has been taken into consideration in the overall planning of further restricting the activities and closing phases of the ex-naval shipyards.
5. At a conference held on 24 May 1950 regarding the future use of ex-naval shipyards, the question of labor was discussed. Mr. McVoy, ESS/LAB, stated they would coordinate with the Japanese Government Labor Ministry in working out any labor-relations problem that may arise. It is pointed out, however, that the only area which will present any labor question will be Kure, and it is expected that some labor will be transferred to Harima, the main yard of the company who was operating Kure Ex-Naval Yard and the remainder will be absorbed locally by new industry which may be moved into the area in the future.
6. Action taken: memorandum was issued to the Japanese Government directing that:
a. The Kure and Ominato ex-naval shipyards be closed by 31 December 1950.
b. The Sasebo and Maizuru Ex-Naval Shipyards will limit operations to repairs of Occupation ships, emergency repairs to foreign flag merchant vessels, voyage and running repairs to Japanese ships, and scrapping operations.
7. Concurrence: CTS; G-4; COMNavFe
8. Further surveillance by CAS is requested.
E. C. Wingo 26-8571
M. M. C.