GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

APO 500
24 November 1945

AG 300.5 (24 Nov 45) ESS/IN
(SCAPIN-339)

MEMORANDUM FOR	THE IMPERIAL JAPANESE GOVERNMENT.
THROUGH	Central Liaison Office, Tokyo.
SUBJECT	Clarification of Directive 3 as Regards Conversion.

1. Memorandum, Imperial Japanese Government, CLO No. 626 (2), dated 18 November 1945, requested this headquarters to clarify the term “conversion” as applied to industrial installations in paragraph 3b of Directive No. 3, dated 22 September 1945.
2. “Conversion” as used in paragraph 3b of the above directive is intended to apply to cases where the physical modification or conversion of the equipment or facilities of a plant is required before such plants, which were engaged in production of war materials, can begin production of consumer commodities. For example, a plant containing machines designed for the production of aircraft cannot be used for the production of consumer goods until the machinery itself is converted. In this case application for conversion shall be made as specified in paragraph 3b of Directive 3. A textile establishment formerly manufacturing military uniforms or blankets for military use can produce clothing and blankets for civilian use without conversion, and may immediately proceed to do so as directed in paragraph 3a of Directive 3.

FOR THE SUPREME COMMANDER:

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