[Title] Directive No. 3 Office of the Supreme Commander for the Allied Powers

DIRECTIVE No. 3

OFFICE OF THE SUPREME COMMANDER FOR THE ALLIED POWERS

DIRECTIVE)

                  )

NO......3)

APO 500

22 September, 1945

1. General. The Japanese Imperial Government is hereby directed to comply, or to insure the compliance as the case may be, with the requirements of the Supreme Commander for the Allied Powers stated in this directive.

2. Economic Controls.

a. You are responsible for initiating and maintaining a firm control over wages and prices of essential commodities.

b. You are responsible for initiating and maintaining a strict rationing program for essential commodities in short supply, to insure that such commodities are equitably distributed.

c. You will report to the Supreme Commander all details of existing economic control machinery and procedures covering the objectives outlined in paragraphs "a" and "b" above within ten days after the receipt of this directive. You will include data on wage schedules and ration allowances of essential commodities in short supply. You will include a statement as to the manner in which such economic control measures are operating and the reasons for inadequacies, if any.

3. Production.

a. You will stimulate and encourage the immediate maximum production of all essential consumers' commodities, including industrial, agricultural, and fisheries products, and commodities necessary to the production of such essential consumers' goods. Priority in allocation of materials, fuel, equipment, and labor will be given to the production of commodities necessary to the feeding, clothing, and housing of the population.

b. Where conversion is considered necessary, of plants heretofore engaged in the production of items prohibited by Par. 4, below, to the production of essential consumers' commodities, you will submit individual application for such conversion of each plant concerned.

4. Prohibited items. No production will be permitted of the following types of items:

a. Arms, ammunition, or implements of war. Applications will be presented for the use or manufacture of such industrial explosives as may be deemed necessary, accompanied by complete supporting data as to its essentiality and methods by which their distribution and use will be controlled.

b. Parts, components or ingredients especially designed or produced for incorporation into arms, ammunition, or implements of war.

c. Combat naval vessels.

d. All types of aircraft, including those designed for civilian use.

e. Parts, components, and materials especially designed or produced for incorporation into aircraft of any type.

5. You will preserve and maintain in good condition for inspection and such disposition as may be directed by this Headquarters all plants, equipment, patents, and other property, and all books, records, and documents of Japanese Imperial Government or private industrial companies and trade and research associations which have manufactured any of the items listed in paragraph 4 of this directive or any of the following items:

a. Iron and steel.

b. Chemicals.

c. Non-ferrous materials.

d. Aluminium.

e. Magnesium.

f. Synthetic rubber.

g. Synthetic oil.

h. Machine tools.

i. Radio and electrical equipment.

j. Automotive vehicles.

k. Merchant ships.

l. Heavy machinery and important parts thereof.

and of any companies, associations or cartels which contributed to the Japanese war effort or were essential to the Japanese economy.

6. Inventory and Records Required. You will as rapidly as possible submit to this Headquarters an inventory of significant plants producing or intending to produce products in the industries listed in paragraphs 4 and 5 of this directive. This inventory will include detailed reports specifying condition and equipment and capacity of plants, and the extent of the stocks of fuel, raw materials, finished goods, and goods in process available.

7. Imports and Exports No imports to, or exports from, Japan of any goods, wares or merchandise will be permitted, except with the prior approval of this Headquarters.

8. a. You will submit a report of all laboratories, research institutes, and similar scientific and technological organizations which will include the following information:

(1) Name.

(2) Location.

(3) Ownership.

(4) Description of facilities.

(5) Number of employees.

(6) Detailed list of all projects by agency that are currently being studied by thes6 agencies and projects studied since 1940.

b. You will direct such agencies to be open for inspection by duly authorized Allied representatives at all times.

c. You will direct such agencies to render a report as of the first day of each month to this Headquarters through your office stating in detail the projects on which their facilities and personnel have been engaged during the preceding month and the results of such work.

d. You will prohibit all research or development work which has as its object effecting mass separation of Uranium 235 from Uranium or effecting mass separation of any other radio actively unstable elements.

9. All reports required in this directive will be submitted typewritten in English, on white paper- size 8 1/2 by 11 inches, in five copies.

R. K. SUTHERLAND

Lieutenant General, United States Army,

Chief of Staff.

OFFICIAL:

(Sgd.) Harold Fair

For B. M. FITCH,

Brigadier General, U.S. Army,

Adjutant General.