VIII. Unification of Concordia Society and Other Organs

1. The organization of the Concordia Society will plece emphasis on the adjustment of organs aiming at the moulding of people's minds and the complete suppression of Communist ideas, and will open all sorts of Concordia headquarters, amplify and adjust existing headquarters, increase branch offices and organize and strengthen Concordia Volunteer Service Corps, Concordia Young Men's Bodies, Concordia Youth Training Schools. Two new provincial headquarters and 87 new prefectural headquarters of the Society will be created.

2. Various other organs like the Society to Support Soldiers, the Red Cross Society, the Women's Defence Auxiliary, the Aviation Affairs Society, will strengthen and amplify their capacity and will each center their activities about the activities of the Concordia Society; maintain the closest contact with it, apply themselves to furthering its objects and power and use every effort to raise the people's strength.

IX. Facilities for Sociel Happiness

In order to dispel anxiety over housing, there shall be built et the above named places substitute official residences, officiel and compeny residences, while in order to provide facilities for research exchange dealing with business and training and for assembly and lodging every type of public hall will be erected. In addition it is planned to build homes (for children and nursing mothers), nurseries, drill grounds, libreries, circulating libreries, lodging houses, charity hostels, emusement parks, playgrounds, et cetera. Facilities for distribution of daily necessities and sanatoria will also be operated. New official residences for families will number 2,500, for bachelors 1,300; there will be seven new assembly hells and 400 collective free hostels; 800 radios and phonographs will be distributed; 1,800 sets of "go". (Japanese checkers) and "shogi" (Japanese chess) and some 130,000 magazines will be distributed;, two sanatorie will be erected; while some Yen 1,000,000 will be spent for orgens for distributing daily necessities.

Source: "Manchoukuo" Official Gazette, May 18, 1939.

Manchuris Industri 1 Development Corporation

Administration Act

Imperial Ordinance No. 460

Promulgated December 20, 1937

Article 1. The Government shall supervise the Manchuria Industrial Development Corporation in accordance with this Law, in order to expedite the coordinated establishment of heavy industries in this country, and to control these industries.

Article 2. The objects of the Manchuria Industrial Development Corporation are to invest in any or all of the following industries and to direct the management thereof in this country:

Besides the business mentioned in the preceding paragraph the Manchuria Industrial Development Corporation may incidentally invest in the business of mining gold, zinc, lead, copper and other metals or other enterprises. Provided, that the sanction of the Minister of the Competent Department. shall be obtained for business other than investments in the mining business in this country.

Article 3. The Manchuria Industrial Development Corporation shall

establish its head office in Hsinking Special Municipality.

Article 4. The amount of capital of the Manchuria Industrial De-velopment Corporation shall be Four Hundred Fifty Million Yen (¥ 450,000,000). Provided, however, that the amount of capital may be increased with the sanction of the Minister of the Competent Department.

In the case contemplated in the proviso of the preceding paragraph, shares without voting power may be issued, irrespective of the provisions of the second paragraph of Article 97 of the Corporation Law.

Article 6. Shares with voting power of the Manchuria Industrial Development Corporation may be transferred to persons of Manchoukuo and Japanese nationality only, or to juridical persons organized under the laws of either of these countries, the majority of the voting power of which Juridical person belongs to a person or person or a juridical person or persons of Manchoukuo or Japanese nationality.

Article 7. The Manchuria Industrial Development Corporation shall have one President, two Vice-Presidents, five or more Directors and three or more Auditors.

Article 8. The President shall represent the Manchuria Industrial Development Corporation and superintend the business affairs thereof.

In case the President is prevented from performing his duties, one of the Vice-Presidents shall perform the duties of the President.

The Vice-Presidents and the Directors shall assist the President and shall manage the business affairs of the Manchuria Industrial Development Corporation.

The Auditors shall audit the business affairs of the Manchuria Industrial Development Corporation.

Article 9. The President and Vice-Presidents shall be appointed by the Government and Directors and Auditors shall be elected at General Meetings of Shareholders.

The term of office of the President and of Vice-Presidents shall be five years, the term of office of Directors shall be four years, and of Auditors three years.

Article 10. The amount of remuneration and allowance to the President and Vice-Presidents shall be decided by the Government.

Article 11. The President, Vice-Presidents and Directors attending to the ordinary business affairs shall not engage in other business without the permission of the Minister of the Competent Department.

Article 12. The amount of dividend payable to shareholders at the close of each fiscal term of the Manchuria Industrial Developmont Corporation not in excess of seven and one half (7) per cent per annum on the paid-in capital, shall be distributed in the proportion of one part to the shares owned by the Government and two parts to the shares owned by others than the Government. ・

In case the amount of dividend payable to shareholders exceeds seven and one half (7) per cent per annum on the paid-in capital, the rate of dividend for such excess shall be equal as to each share.

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In case the capital is increased in accordance with the provisions of Article 4, a special provision shall be made, with the sanction of the Minister of the Competent Department, as to the dividend payable to shareholders, irrespective of the provisions of the two preceding paragraphs.

Article 13. If at the close of each fiscal term of the Manchuria Industrial Development Corporation, the consolidated net profits accrued from undertakings carried on in Manchoukuo do not equal six (6) per cent per annum on the total amount of funds appropriated for such undertakings, (funds consisting of profits earned from such undertaking excepted), the Government will contribute an amount equal to the amount of such shortage for any fiscal term ending within ten years from the enforcement date of this Law. If and when consolidate net profits for subsequent fiscal term exceed six (6) per cent per annum, the amount so contributed shall be repaid from such excess, with interest at the rate of two (2) per cent per annum.

Consolidated net profits shall be calculated by deducting gross losses (interest on debts excluded) from gross profits (profit brought forward included) accrued, from undertakings carried on in Manchoukuo,

Article 14. In case of dissolution of the Manchuria Industrial Development Corporation, the residual assets, the value of which does not exceed one hundred fifty (150) per cent of the paid-in capital, shall be distributed in the proportion of one part to the shares owned by the Government and two parts to the shares owned by others than the Government.

In case the value of the residual assets exceeds. one hundred fifty (150) per cent of the paid-in capital, the rate of distribution for such excess shall be equal as to each share.

In case the capital is increased in accordance with the provisions of Article 4, a special provision shall be made, with the sanction of the Minister of the Competent Department, as to the distribution of the residual assets to shareholders, irrespective of the provisions of the two preceding paragraphs,

Article 15. The Manchuria Industrial Development Corporation may issue debentures to the extent of twice the amount of the paid-in capital with the sanction of the Minister of the Competent Department.

Article 16. In calling general meetings of shareholders of the Manchuria Industrial Development Corporation, a notice shall be sent to each shareholder ten days prior to the date of the meeting.

Article 17, The Manchuria Industrial Development Corporation shall determine its business plans for each fiscal year, and submit the plans to the Minister of the Competent Department. This rule shall apply to any alterations in the plans.

Article 18, Resolutions for the election and dismissal of Directors and Auditors, for amendments to the Articles of Association, for the disposition of profits, for the issuance of debentures, for the amalgamation and dissolution of the Corporation shall not become effective unless the sanction of the Minister of the Competent Department is obtained therefor.

Article 19. The Manchuria Industrial Development Corporation shall not transfer its important assets or surrender the same as security without the sanction of the Minister of the Competent Department.

Article 20. The Minister of the Competent Department may issue the necessary orders for supervision of the business affairs of the Manchuria Industrial Development Corporation,

Article 21. The Minister of the Competent Department may issue the necessary orders for control of the enterprises as to the business of the Manchuria Development Corporation.

Article 22, The Minister of the Competent Department may rescind resolutions of the Manchuria Industrial Development Corporation, if he deems such resolutions to be against the laws, regulations, Articles of Association, or to be detrimental to public welfare.

The Minister of the Competent Department may dismiss the President, Vice-Presidents, Directors or Auditors, if he deems acts of such offices to be against the laws, regulations, Articles of Association, orders issued hereunder, or to be detrimental to public welfare.

Article 23. The Minister of the Competent Department shall appoint Superintendents of the Manchuria Industrial Development Corporation, and have such Superintendent inspect the business affairs of the Manchuria Industrial Development Corporation.

Article 24. The Superintendent of the Manchuria Industrial Development Corporation may at any time examine safes, books, and documents of the Manchuria Industrial Corporation.

The Superintendent of the Manchuria Industrial Development Corporation may at any time he deems it necessary order the Manchuria Industrial Development Corporation to submit its accounts and a report on the conditions of its business.

The Superintendent of the Manchuria Industrial Development Corporation may attend general meetings of shareholders, and other meetings, and express his opinion thereat.

Article 25. The Minister of the Competent Department referred to in this Law shall be the Minister of the Department of Industry and the Minister of the Department of Finance and Commerce.

Article 26. No person other than the Manchuria Industrial Development Corporation may use the name of Manchuria Industrial Development Corporation, or any other name similar thereto, as a trade name.

Supplementary Provisions

Article 27. This Law shall be enforced on and after December 27th of the 4th year of Kangte (1937).

Article 28. The Capital of the Manchuria Industrial Development Corporation may for the time being be in Japanese currency.

Article 29. As to the business coming under the second paragraph of Article II, in which the Manchuria Industrial Development Corporation may have invested at the time of the enforcement of this Law, such business or businesses as to which notice is given to the Minister of the Competent Department within thirty days from the date of enforcement thereof shall be deemed to have been sanctioned hereunder.

Article 30. If the President, Vice-Presidents or Directors attending to ordinary business affairs of the Manchuria Industrial Development Corporation, who are engaged in other business at the time of enforcement of this Law, notify such fact to the Minister of the Competent Department within thirty days from the date of enforcement hereof, it shall be deemed that they have obtained saction therefor.