694.0031/12–2947
The Acting Political Adviser in Japan (Sebald) to the Secretary of State
The Acting Political Adviser has the honor to enclose copies of this Headquarters’ Circular No. 15 of December 11, 194713 rescinding Circular No. 9 of August 15, 1947 regarding the establishment of an Occupied Japan Export-Import Revolving Fund for financing Japanese imports and exports of commodities and services.
By the terms of Circular 15 additional authorization has been granted to the Controller of the Fund to borrow money on the credit of the Fund (par. 3,b); to treat such money as a part of the Fund assets (par. 4, 9[d]); and to use the Fund for the payment of monies so borrowed (par. 5,e). Furthermore, Circular 15 places a time limitation upon the Controller’s power to use the Fund for payment of imported materials to be utilized in export production. He may make such purchases only if, in his judgment, the materials will “have an [Page 344] anticipated value in excess of the cost of such materials realizable within one year after the date of arrival in Japan of such materials” (par. 5,b). Circular 9 provided that no special lien or preference would be given the supplier of commodities for which the Fund is obligated or expended, whereas Circular 15 provides that those to whom the Fund is so obligated shall have a first claim against the Fund’s assets (par. 6,a).
Paragraph 6,c of Circular 15 provides that in the event the Controller decides to sell Fund assets to meet Fund obligations, the Controller must offer “to sell such assets to member nations of the Far Eastern Commission for currencies required to discharge such obligations of the Fund.” The percentage requirement of Circular 9 that the net worth of the Fund exceed fifty per cent of the total liabilities before the Supreme Commander for the Allied Powers may make withdrawals in any amount from the Fund provided that such withdrawals do not reduce the net worth of the Fund to less than fifty per cent of the total liabilities, has been changed in Circular 15 to forty per cent.
- Not printed.↩