MEMO FOR RECORD: (SCAPIN - 430/1)
WKL/JCS/CBD/bb
8 July 1948
1. CLCO Memorandum No. 1966 (LO 2146 AD/CU), dated 27 May 1948, subject: Application for Permission to Raise Limit on Sum of Relief Payments to Japanese Repatriates, forwarded a request from the MOF to increase the amount of relief payments made by the Japanese Government to repatriated Japanese Nationals. The desired increase was from the present authorized ¥1,000 per individual to ¥3, 000 for the head of a family and ¥1,000 for each member of the family.
2. Memorandum for the JG from GHQ, SCAP, AG 123(13 Dec 45)ESS/FI, SCAPIN 430, dated 13 December 1945, subject: Relief Payments to Japanese Repatriates, authorizes payments of ¥1,000 to each individual provided that the payment plus any currency, the importation of which is authorized, in the possession of the individual being repatriated does not exceed ¥1,000.
3. In view of the fact that import-export regulations were under revision, the MOF was informed that the application attached to reference memorandum paragraph 1 above was under study and upon revision of existing regulations the MOF would be so advised. Reply was made in letter to the Ministry of Finance from ESS, GHQ, SCAP, 091, 714 (7 Jun 48)ESS/FI dated 7 June 1948, subject: Relief Payments to Japanese Repatriates.
4. However, after careful consideration, it has been determined that a change in the amount of currency, the importation of which is authorized, allowed to the individual being repatriated, has no real effect on this problem. The reason is that at this time only Japanese yen is authorized to be carried in. Theoretically, the only type yen located outside of Japan and which is in possession of the repatriates is the Old Imperial type which has been invalidated by the currency conversion of March 1946. However, certain repatriates are entering Japan with new BOJ notes in their possession. Since the exportation of these notes are prohibited, this indicates that some notes are finding their way out illegally. The invalidated yen is picked up at the port of debarkation. Amounts up to the authorized limitation are exchanged by the BOJ for new Bank of Japan notes. A receipt is furnished the individual for the remainder, if any. There is no conversion of the invalidated yen for which receipt has been issued.
5. The plan presently being formulated is to prohibit the importation of all currencies including invalidated yen and New Bank of Japan notes.
6. It is recommended that the proposal of the Ministry of Finance be approved. Since the issuance of reference memorandum paragraph 2 above, the value of the yen has declined. A relief payment of ¥1,000 per individual is not longer considered sufficient.
7. Proposed directive to the JG amends paragraph 3.b. of reference memorandum paragraph 2 above. Until formulation of policy as outlined in paragraph 5 above, certain currency is permitted to be carried in by repatriates. The amendment is worded so as to take into consideration any such currency while it is authorized.
8. The interests of USAFIK have been considered. Korea is not affected.
9. Surveillance of Eighth Army is not necessary.
10. No concurrences necessary.
W. K. L.