GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

APO 500
3 April 1946

AG334 (3 Apr 46) ESS-IE
(SCAPIN-854)

MEMORANDUM FOR	IMPERIAL JAPANESE GOVERNMENT.
THROUGH	Central Liaison Office, Tokyo.
Subject	Board of Trade (Boeki Cho).

1. References are made to the following documents pertinent to the establishment of an agency by the Imperial Japanese Government which will represent that government in the performance of approved foreign trade functions:
a. Paragraph 3d of Memorandum for the Imperial Japanese Government AG (091.31) ESS, dated 9 October 1945, which ordered the creation of an agency to be responsible for receiving, and for the distribution of, imports.
b. Central Liaison Office No. 1176 (1.123) dated 18 December 1945.
c. Imperial Ordinance No. 703 dated 14 December 1945.
d. Imperial Ordinance No. 704 dated 14 December 1945.
e. Foreign Trade Settlement Fund Law, Proceeding of the Diet No. XXVI (c) of 21 December 1945.
2. The Board of Trade, as indicated in C. L. O. 1176 (1.123) dated 18 December 1945, hereinafter referred to as Boeki Cho, is hereby recognized as the exclusive agency of the Imperial Japanese Government to handle all Japanese foreign trade transactions in accordance with the following:
a. All of the transactions of Boeki Cho will be handled in accordance with, or in a manner consistent with, instructions of the Supreme Commander for the Allied Powers.
b. All foreign trade will be handled by Boeki Cho on behalf of the Imperial Japanese Government, except as may be specifically authorized to the contrary by the Supreme Commander for the Allied Powers.
c. No other agency of the Imperial Japanese Government, no quasi-governmental or other organization or association, and no natural or legal person under the jurisdiction of the Imperial Japanese Government will perform any foreign trade functions except through Boeki Cho or as specifically authorized by the Supreme Commander for the Allied powers.
d. Boeki Cho will deliver or cause to be delivered all export goods as instructed by the Supreme Commander for the Allied Powers. It will take delivery or cause delivery to be taken of import goods as instructed by the Supreme Commander for the Allied Powers. Boeki Cho will deliver or cause to be delivered for export only goods to which full and complete title has been vested in Boeki Cho on behalf of the Imperial Japanese Government, unless otherwise specifically authorized by the Supreme Commander for the Allied Powers, and Boeki Cho will transfer title thereto as the Supreme Commander for the Allied Powers may direct. Boeki Cho will take title on behalf of the Imperial Japanese Government to imported goods as directed by the Supreme Commander for the Allied Powers.
e. All commercial burdens, risks, claims and other responsibilities and liabilities as to foreign trade will be assumed by Boeki Cho.
f. All imports will be received “as is” and, except as approved by the Supreme Commander for the Allied Powers, Boeki Cho and the Imperial Japanese Government will assert no claims with respect to quality, quantity, condition or any other matter directly or indirectly affecting the receipt of such goods.
g. Boeki Cho and the Imperial Japanese Government will hold all other Governments and agencies and representatives thereof harmless from all loss, cost, damage or expense arising directly or indirectly out of any purchase, sale, disposition or other handling of export or import goods or arising in connection with any foreign trade transaction.
h. The appointment of all personnel of Boeki Cho of the rank of Chief of Bureau or higher, including Advisers and Counselors, will be subject to the approval of the Supreme Commander for the Allied Powers. Advice concerning personel listed in the inclosure to your memorandum C L O No. 1176 (1.123) dated 18 December 1945 will be furnished at an early date.
3. Imperial Ordinance No. 703, dated 14 December 1945, which established Boeki Cho, and other laws, ordinances and regulations partinent. thereto will be amended to give effect to the following:
a. Boeki Cho will purchase export goods only as authorized by the Supreme Commander for the Allied Powers by approval of an “Application to Prepare for Export” or an “Application to Deliver for Export” or by issuance of an export directive from the Supreme Commander for the Allied Powers.
b. Boeki Cho will receive all import goods made available by the Supreme Commander for the Allied Powers. It may allow others to perform acts connected with receipt of the goods, but title will first be vested in Boeki Cho on behalf of the Imperial Japanese Government, unless otherwise directed by the Supreme Commander for the Allied Powers.
c. Boeki Cho will handle, transfer, and receive all import and export goods in accordance with instructions of the Supreme Commander for the Allied Powers and authorizations and policies established by duly empowered agencies of the Imperial Japanese Government.
d. Boeki Cho will be empowered to perform all of the acts and do all that is necessary to give full effect to paragraphs 2d, e and f above.
e. Advisers will be appointed for one year terms.
f. Advisers will in general act as a body (Board of Advisers). They will act upon a vote of a majority of the advisers, and minutes of all meetings shall be kept. The President of Boeki Cho will request their advice on all important matters. On occasion, they will upon the President’s request, individually or as members of committees, assist him in the discharge of operations functions.
4. Imperial Ordinance No. 704, dated 14 December 1945, which established the Committee for the Distribution of Imported Goods, and other laws, ordinances, and regulations pertinent thereto will be amended to give effect to the following:
a. The Committee for the Distribution of Imported Goods will advise and assist Boeki Cho and other duly empowered agencies of the Imperial Japanese Government in the distribution of imported goods, acting consistently with instructions of the Supreme Commander for the Allied Powers and policies of all duly empowered agencies of the Imperial Japanese Government.
b. Committee members may act individually or in groups to advise or assist the President of Boeki Cho.
5. The Foreign Trade Settlement Fund, created by Proceeding of the Diet, No. XXVI (c) of 21 December 1945 will be sufficient in amount to meet the obligations of Boeki Cho, and laws, ordinances and regulations will be amended to give effect to the following:
a. Any loans or appropriations deposited in the fund are to be reported to the Supreme Commander for the Allied Powers.
b. The fund will be available solely to Boeki Cho and will be expended upon order of Boeki Cho only to discharge financial obligations reasonably assumed in the performance of the acts mentioned in paragraph 3a, b, c and d, above, except as may otherwise, be specifically authorized by the Supreme Commander for the Allied Powers.
c. All sums received by Boeki Cho arising directly or indirectly out of the sale or other disposition of imported goods will be deposited in the Foreign Trade Settlement Fund and will be available to Boeki Cho for the purposes defined above.
d. No loans for financing distribution of imports nor for processing or assembly of goods for export will be made out of the Foreign Trade Settlement Fund.
e. The Fund will not be used for any subsidy, direct or indirect, on any imported goods.
6. Direct communication between Boeki Cho, designated agencies of the Imperial Japanese Government and interested staff sections of the General Headquarters of the Supreme Commander for the Allied Powers is hereby authorized to implement the instructions contained in this memorandum.
7. Provisions of this memorandum do not apply to restitution, restoration or reparations directed by the Supreme Commander for the Allied Powers.

FOR THE SUPREME COMMANDER:

B.M.FICHI
Brigadiar General,AGD,
Adjutant General