GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

6 November 1945

AG 004 (6 Nov 45) ESS/ADM
(SCAPIN-244)

MEMORANDUM FOR	IMPERIAL JAPANESE GOVERNMENT.
THROUGH	Central Liaison Office, Tokyo.
SUBJECT	Dissolution of Holding Companies.

1. Receipt of the proposed plan for the dissolution of Mitsui Honsha, Yasuda Hozensha, Sumitomo Honsha and Kabushiki Kaisha Mitsubishi Honsha is acknowledged.
2. The plan proposed therein is approved in general and the Imperial Japanese Government will immediately proceed to effectuate it. No disposition of any property transfered to the Holding Company Liquidation Commission will be made without the prior approval of the Supreme Commander. You will submit the legislation through which the Holding Company Liquidation Commission will be created to the Supreme Commander for approval. It should be clearly understood that full freedom of action is retained by the Supreme Commander for the Allied Powers to elaborate or modify the proposed plan at any time and to supervise and review its execution.
3. The Imperial Japanese Government will immediately take such steps as are necessary effectually to prohibit the sale, gift, assignment or transfer of any moveable or immoveable property, including securities and other evidences of ownership, indebtedness or control by Mitsui Honsha, Yasuda Hozensha, Sumitomo Honsha and Kabushiki Kaisha Mitsubishi Honsha and the members of the Mitsui, Iwasaki, Yasuda and Sumitomo families or by any person acting in their behalf.
4. The Imperial Japanese Government will deliver to the Supreme Commander for the Allied Powers, within fifteen days of the receipt of this memorandum, a report listing:
a. All moveable or immoveable property, securities and other evidences of ownership, indebtedness and control in which the members of the Mitsui, Iwasaki, Yasuda and Sumitomo families had any right, title or interest as of November 1st, 1945.
b. All transactions involving moveable or immoveable property, including securities and other evidences of ownership, indebtedness and control by any member of the Mitsui, Iwasaki, Yasuda and Sumitomo families since January 1st, 1945.
5. It is the intention of the Supreme Commander to dissolve the private industrial, commercial, financial and agricultural combines in Japan, and to eliminate undesirable interlocking directorates and undesireable intercorporate security ownership so as to:
a. Permit a wider distribution of income and of ownership of the means of production and trade.
b. Encourage the development within Japan of economic ways and institutions of a type that will contribute to the growth of peaceful and democratic forces. The plan proposed by the Imperial Japanese Government in the memorandum referred to in paragraph 1 above will be considered only as a preliminary step toward these objectives.
6. Accordingly, the Imperial Japanese Government will promptly present for approval by the Supreme Commander for the Allied Powers:
a. Plans for the dissolution of industrial, commercial, financial and agricultural combines in addition to those mentioned in the communication acknowledged in Paragraph 1 hereof.
b. Its program to abrogate all legislative or administrative measures which create, foster or tend to strengthen private monopoly.
c. Its program for the enactment of such laws as will eliminate and prevent private monopoly and restraint of trade, undesireable interlocking directorates, undesirable intercorporate security ownership and the segregation of Banking from commerce, industry and agriculture and as will provide equal opportunity to firms and individuals to compete in industry, commerce, finance and agriculture on a democratic basis.
7. The Imperial Japanese Government will immediately take such steps as are necessary effectually to terminate and prohibit Japanese participation in private international cartels or other restrictive private international contracts or arrangements.
8. Acknowledgement of the receipt of this memorandum is directed.

FOR THE SUPREME COMMANDER:

H.W.ALLEN,
Colonel, A.G.D.,
Asst Adjutant General.