My telegram 1 [1], paragraph 3.

The most important directives may be classified under the
following main heads:-

(1) Financial and industrial.

(2) Public relations.

(3) Educational and religious.

(4) Public health.

2. The following is a digest of the chief matters dealt with
therein, under the above headings.

(1) (a) Bank of Japan has been ordered to make available funds for
the occupation forces by the Finance Department United States
Army. Supplemental military yen currency issued by the occupation
forces has been made legal tender. Transactions involving gold or
silver coins, gold, silver or platinum bullion have been
prohibited.

(b) Colonial and Foreign Banks and special wartime financial
institutions have been ordered to close.

(c) Banks, Trust Companies, Insurance Companies and Security
Brokers have been required to segregate foreign exchange assets
held by them and to furnish reports thereon.

(d) Reports have been called for from the Japanese Government on
the following matters:-

Machinery established for production and distribution of essential
consumers commodities;

Control of prices, salaries and wages;

Elimination of black market;

Quantities of industrial and agricultural products available, with
a computation for twelve months of estimated monthly needs.

Following on these reports the Japanese Government has been made
responsible for control of wages and the prices of essential
commodities and for encouraging maximum production of essential
consumers goods.

(e) In matters of factory conversion G.H.Q. approval must always
be sought.

(f) The Japanese Government has been granted authorisation for the
use of certain quantities of specified textiles and certain
quantities of steel, aluminium, leather and rubber.

(g) Petroleum stocks are made available, as directed by G.H.Q.,
through Home Ministry.

(h) Japanese plan for dissolution of holding companies involving
Zaibatsu has been approved in general by G.H.Q. Main concerns
involved are Mitsui Honsha, Yasuda Hozensha, Sumitomo Honsha and
Mitsubishi Honsha. Lists are to be submitted of property,
securities reserves and control in which Mitsui, Yasuda and
Sumitomo families had any rights or interest up to November 1st,
1945. No disposition of property transferred to Holding Company
Liquidation Commission will be made without the approval of the
Supreme Commander. Intention is to dissolve all combines other
than the above and the Japanese Government has been directed to
submit plans to this end.

(2) Press and radio codes have been laid down for Japan and
requirements are as follows:-

(a) News must adhere to the truth and must not by false emphasis
or omission of relevant facts follow any propaganda line.

(b) No destructive criticism of the Allied powers is permitted.

(c) Nothing calculated to disturb public tranquillity is to be
printed or broadcast.

(d) In furtherance of the policy of freeing the press, Government
control of news agencies has been removed.

(3) Main emphasis is on the elimination of militaristic ideology
and to this end curricula, text books and personnel of educational
institutions are to be investigated by G.H.Q. Freedom of speech,
assembly and religion has been enunciated as an essential
principle.

(4) In the interests of public health the Japanese Government has
been ordered to make surveys to determine disease prevalence,
medical personnel available, hospital facilities. The Japanese
Government is required to carry out disease control, to establish
port quarantine control with particular reference to Japanese
repatriates and to restore all civilian employment involving
public health work, civilian hospitals and public water supply and
sewerage systems.