SCAPIN-2158: RESCISSION OF DIRECTIVES AFFECTING THE HOLDING COMPANY LIQUIDATION COMMISSION
GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS
APO 500
21 June 1951
AG 004
(21 Jun 51)
ESS/FTP
(SCAPIN-2158)
| MEMORANDUM FOR | JAPANESE GOVERNMENT. |
|---|---|
| SUBJECT | Rescission of Directives Affecting the Holding Company Liquidation Commission. |
1. Reference the following Memoranda for General Headquarters, Supreme Commander for the Allied Powers, from:
a. The Imperial Japanese Government, dated 4 November 1945, subject: Dissolution of Holding Companies.
b. The Japanese Government, dated 18 June 1951, subject: Dissolution of Holding Companies.
2. The measures proposed in the memorandum of the Japanese Government, dated 18 June 1951, reference paragraph 1b, above, are approved and incorporated herein by reference for implementation.
3. The following Memoranda for the Japanese Government from General Headquarters, Supreme Commander for the Allied Powers, are hereby rescinded:
a. Paragraphs 1 to 4, inclusive, of AG 004 (6 Nov 45) ESS/ADM, SCAPIN 244, 6 November 1945, subject: Dissolution of Holding Companies.
b. AG 319.1 (19 Jan 46) ESS/AC, SCAPIN 626, 19 January 1946, subject: Reports to be Made by Certain Business Firms.
c. AG 004 (4 Apr 46) ESS/AC, SCAPIN 859, 4 April 1946, subject: Holding Company Liquidation Commission.
d. AG 091.4 (3 Jun 46) ESS/AC, SCAPIN 995, 3 June 1946, subject: Reports to be Made by Certain Families.
e. AG 091.3 (23 Jul 46) ESS/AC, SCAPIN 1079, 23 July 1946, subject: Ordinances and Regulations Affecting the Holding Company Liquidation Commission.
f. AG 095 (26 Nov 46)ESS/AC, SCAPIN 1363, 26 November 1946, subject: Transfer of Zaibatsu Family Properties to Holding Company Liquidation Commission.
4. The rescission of the above memoranda, or parts thereof, shall not in any way affect any actions heretofore taken pursuant thereto, nor shall it have any retroactive effect whatsoever; and all references to such memoranda in other directives of the Supreme Commander to the Japanese Government shall from the date hereof be construed to refer to this memorandum.
FOR THE SUPREME COMMANDER:
K.B.BUSH
Brigadier General, USA
Adjutant General
MEMO FOR RECORD: (SCAPIN - 2158)
WFM/RMG/LNS/ld
20 June 1951
1. In November 1945 the Japanese Government, after informal discussions with the Headquarters, submitted a plan for the dessolution of holding companies and termination of controls exercised by Zaibatsu families over the principal financial and industrial combines and the establishment of a JG agency, the Holding Company Liquidation Commission, to administer those measures.
2. Such plan was approved, with certain modifications, by specific SCAP directives.
3. The approved plan provided, among other measures, for payment to Zaibatsu family members and holding companies of proceeds from liquidation of properties transferred to HCLC in the form of ten-year non-negotiable government bonds and prohibited the designated Zaibatsu persons from holding any position as officer of any company without prior JG approval.
4. The HCLC has disposed of all securities transferred to it, including more than 166 million shares of capital stock and is now ready to make final liquidation payments.
5. The amount of net proceeds held by HCLC for distribution to Zaibatsu persons is approximately \300 million. The JG has submitted a proposal, dated 18 June 51, for amendment of the November 1945 plan so as to eliminate its provisions requiring payment of liquidation proceeds in government bonds and the prohibition against management activities and to provide for dissolution of the HCLC.
6. In view of the relatively small amount of free funds that would be acquired by Zaibatsu persons from HCLC cash payments, instead of government bonds, and other safeguards such as anti-monopoly legislation, new tax laws, etc., it is not deemed necessary for SCAP to insist upon carrying out of the originally approved plan and approval of the current proposal is compatible with basic post-surrender policy and the current pretreaty Occupation policy.
7. The effect of abolition of the current ordinance and the promulgation of the new proposed ordinance is to eliminate all restrictions on designated holding companies and designated persons except a prohibition against exercise of voting rights to revive companies which are in liquidation under the provisions of the old ordinance.
L. N. Salwin 26-6671
R. M. G.
