Page:Military Occupation and Military Government Relations of the Allied Forces in Japan - Press Release Dossier Vol. 11.pdf/23

 The commission is charged with the task of disposing of stock under "such surveillance as to prevent directors and officers of the Fuji company, the Nakajima family, or any new companies carved out of the firm from acquiring stock in any of the subsidiary plants or new corporations created from the 15 branch plants," Mr. Henderson added.

Of its total subsidiaries, the Fuji Industrial company owns 10 per cent or more stock in 65 concerns, and less than 10 percent in the remaining 24.

All proceeds from sales of stock by the Holding company Liquidation Commission of both the Fuji Industrial Company and its 89 subsidiaries will go first to pay outstanding debts of the Fuji corporation.

Whatever assets remain after payment of debts will be turned over to the Nakajima family in the form of non-negotiable government securities which will be convertible only at the end of 10 yers.

Total assets of the Fuji Industrial company are 2,276,892,000 yen, Mr. Henderson said. The company owes 2,130,399,000 yen, of which 2,076,735,000 represents loan payments due the Industrial bank of Japan. The remaining debts are outstanding debentures and tax obligations.

Mr. Henderson said the Fuji Industrial company must "cease immediately to exercise its voting rights as a shareholder in any company in which it holds shares, except as may be necessary to protect its investments, and then only upon approval of SCAP."

The Nakajima firm produced transport plans before the war. During the war it made phenomenal growth.

The concern assisted in financing many subcontracting companies to furnish essential parts to the Fuji company's plants. In addition to acquiring shareholdings, it extended loans to many of the companies.

Most of the Fuji subsidiaries today are valued at less than 10,000,000 yen, and, according to Japanese standards, are considered fairly small industrial plants.

Meantime, all of the 15 branch plants of the Fuji company have applied for temporary reconversion permits, and eight have been granted. These are manufacturing essential civilian goods such as household utensils, bicycles and wagons.

Because all 15 plants manufactured aircraft or aircraft parts, Mr. Henderson said they come under proposed lists for reparations.

He added that proposed reorganization of the Fuji Company was drawn up the the concern in accordance with previous SCAP directives.

-O- LONG-RANGE DISCHARGE PLAN ANNOUNCED BY WAR DEPARTMENT

All non-volunteer enlisted men with 20 months of service as of September 30, and all non-volunteer enlisted fathers, regardless of their service, must be separated from the army by September 30, the War department informed GHQ, AFPAC, today in a radio establishing long-range policies for the discharge of enlisted men.

Theater commanders were ordered to schedule the release of personnel affected so that they will arrive in the zone of interior by September 20.

Beginning October 1, all enlisted men with 18 months service as of November 30 will be eligible for discharge, and will be separated from the army by November 30. Enlisted men who meet these requirements must reach the zone of interior by November 20.

Subsequently, enlisted men who accumulate 18 months active duty must be separated from the army by the end of the month in which they attain that amount of service, the War Department has announced.

The War department also announced that all non volunteer enlisted women will be eligible for discharge October 1. Until September 30, they will require the same amount of service for discharge as enlisted men.

Earlier AFPAC estimated that all non-volunteer enlisted fathers and all non-volunteer enlisted men with 23 months service of June 30 would be on their way by August 31 for disposition in the zone of interior.

The new discharge criteria released by the War Department will require a substantial increase in demobilization shipping in the Pacific Theater, according to GHQ officials. It was estimated that 80,000 men in the Pacific theater will be affected by the criteria affecting fathers and men with 23 months service as of June 30. The new requirements are expected to raise the number of enlisted men to be sent out of the theater by August 31 to 155,000. These men must leave their overseas stations in time to reach the United States by Sept. 30.