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APPROVE~ FOR RELEASE= 2007/02/09= CIA-R~P82-00850R000100060019-4 i3~_ ~ , iOF i APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047102/09: CIA-RDP82-00850R000100060019-4 ~ FOR OFF~CIAL USE ONI.Y JPRS L/8508 ~ ].3 June 19 79 ~ ~ TRANSLATIONS ON JAPAN CFOUO 19/79) U. S. JOINT PUBLICATIONS RESEARCH SERVICE FOR OFFI CIAL USE OHLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-0085QRQOQ1 QOQ60019-4 ~ NOT~ JpItS publicaCions conCain informaCion prim~rily from fnreign newspapers, periodicale ~nd books, buC a1~o frmm ~ews agency Cransmissions and broadcasts. MaCerials from foreign-langu~ge sources are Cranslated; those from English-language sources are Cranscribed or reprinted, with tfie original phrasing and other characteristics reC~ined. kieadlines, ediCorial reporGs, and meterial enclosed in brackets are supplied by JPR5. Processing indicaeors such as [Texe~ or (ExcerpC] in the tirsC line of each item, c~r following the last line of a brief, indicaCe how Che origina', information was processed. Where no processinb indicator is given, Che infor- mation was summarized or extracCed. Unfamiliar names rendered phonetically or transliterated are enclosed in parentheses. Words or names pr~ceded by a ques- tion mark and enclosed in parentheses were not clear in the original ~ut have been supplied as appropriate in context. Other unattributed parenthetical notes within the body of an item originate with the source. Times wfChin items are as given by source. The contents of this publication in no way represent the poli- cies, views or attitudes of the U.S. Government. COPYRIC~iT LAWS AND REGULATIONS GO~VERNING O~INERSHIP OF MATERIALS REPRODUCED HEREIN REQUIRE THAT DISSEMIAtATION OF THIS PUBLICATION BE RESTRICTED FOR OFFICIAL USE ONLY. APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-0085QRQOQ1 QOQ60019-4 . FOR OFFZCxAL USE ONLY ~ ~ JPRS L/8508 , ~ ~.3 June 19 79 ~ TRANSLA~IONS ON JAPAN ~ (FOUO ].9/79 ) ~ ~ ~ CONTENTS ~ PAGE ~ POLITICAL AND SOCIOLOGICAL ~ "e1SAHI': Japan Decides To EsCablish Closer 7:ies With Chi1e (A,SAHI EVENING NiWS, 28 May 79) . 1 B~iefs ' Leftists Oppose 'ERA' Bill 3 ECONOMIC E~?pert R~views Roots of Friction With United States (Fumitoshi Takahashi; ASAHI JANARU, 13 Apr 79) 4 Canadian Ambassador Discusses Japanese Trade, Investment (Shig Fujitar; ASAHI EVENING�NEWS, 24 May 19) 13 'NAINICHI' Editorial Calls for Review of Aviation Policy . F. (Editorial; MAINICHI DAILY NEWS,~16 May 79) 17 I`fITY Decides To Triple Government Oil Stockpile. ' (ASAHI EVENING NEWS, 26 May 79) 19 Briefs ' . . ~ MITI Policy 20 SCIENCE AND TECHNOLOGY - Japan w'ill Push for Joint International rechnology VenCures (THE DAILY 7~OMIURI, 21 Maq 79) 21 ~ U~ Japan .Ioint Jet Engine Development ~ ' (THE DAILY YOMIURIp 23 May 79) 24 ' Mitsui, Kawatetsu Develvp Re~�olutionary Coke Process ~ '(MAZNICHI DAILY NEWS, 25 May 79) 25 . - � . ~ - 8 - . [III - ASIA - 111 FOUO] � EOR aF.FICIAL USE ONLY ~ � . ~ APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047102/09: CIA-RDP82-00850R000100060019-4 FOR OFFICYAL USE ONLY , CONTENTS (ConCinued) Page NREA Urges Energy Research ~unding (MAINICHI DAILY NEW5, 23 May 79) 21 Briefs~ Rainbow Project 29 ' MITI Space CommiCkee 29 HTGR Planning 29 Centrifuge Enrichment 29 , Coal Liquefaction Plant 30 � Sh~'pbuilding Computerization 30 Automated Shearing Line 30 Titanium-Clad Aluminum 30 ~ , Image Recording MaCerial 30 Plastic Magnet 30 -b- FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-0085QRQOQ1 QOQ60019-4 FOR OFFICIAL USE ONLY POLITICAL AND SOCIOLOGICAL ASAHI': JAPAN DECIDES 'PO ESTABLISH CLUSER TIES WITH CHILE Tokyo ASAHI EVEI~ING N~iJS in Engliah 28 May 79 g 1(DW , [Text] The government will henceforth eatabliah close relationa with the military regime o� Preaident Augusto Finochet of Chile, which is a target of international criticism for human rights violat~lons,.sources disclosed Sun- day [27 May]. Preaident Pinochet will be invited to Japan sometime after June next year, and Foreign Minister Sunao Sonuda has added Chile to the itinerary of his Latin American tour in August this year. The policy change has resulted from strong requests by formex Agriculture and Porestry Minister Zenko Suzuki, a top leader of Prime Minister Masayoshi Ohira's faction within the ruling Liberai-Democratic Part~; the sourcea said. Suzuki acted on behalf of Japan's fisheries industry, they said. Chile is very important to the industry because the war$rs off its long coaet are _ good fiahing grounds. A visit here by Robeito Kelly, Chile's minister of economy, development and reconstruction, in late ~1pri1 provided the breakthrough, the sources said. ~uzuki met Sonoda twice around that time and asked for a change in policy. Sonoda gave his consent and informed Kelly that the government wi7.1 invite Pinochet to make a trip here sometime after June next year as a state guest. _ Because of the international criticism of Chile, Japan's relations with the Latin American country have been kegt to a minim~mm. The United Nations Getieral Assembly has passed a resolution denounding Chile for human rights violations svery year since 1975. Japan has been voting for it. The governmerrt's policy chsnge is bound to co~e under opposition attack in the Diet. The oppasition parties will see in the change of policy somethir.g in cc?mmon with the govarnment's attitude towards the 1973 kidnaping of South Korean opposition leader Kim Tae-chong from Tokyo to Seoul. 1 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-0085QRQOQ1 QOQ60019-4 FOR OFFICIAL USE ONLY The Japan Socialist Party and the Japan Communiat Party, in parCicular: have a s~ecial sympathy for the government of Preeident Selvedor Allende, u Murxiet~ which wae toppled in a bloody milltary coup in September~ 1973. When Allende roae to power in a peaceful revolution in 1970, they welcomed it as aetting a pre~edenC for Japan. Japan's fisheriea industry hae been auffering from the establiahment of 20U-mile national fishing zones. BuC the Pinochet government has reported- ly responded favorably to Japanese plana to aet ~p fiehing firms in Chile. ' Suzuki himself visited South America in August .lasC year on behalf af the fisheries induetry. Strong ob~ections to the change in policy reportedly aroae within the Foreign Ministry (G~imuaho), bu*. the miniatry eventually decided to go along ae it was "an order from abowe," in the words of miniatry sources. . Some Gaimusho officials have eince c~me around to supporting the change. They say: (1) Chile is domeaCically stable, and the suppreasion of rights is diminishing; (2) Japan's making an approach to Chile at a time when it is internationally isolated will be highly appreciated and yield ma~or economic gains; (3) Some other countries are worae than Chile with reapect ~o human rights violations, and to bear hard on Chile a~one may conatitute inter- Eerence in the domestic affaira of that counCry. COPYRIGHT: Tokyo Asahi Evening News 1979 CSO: 4120 _ 2 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047102/09: CIA-RDP82-00850R000100060019-4 FOR OFFICIAL US~ ONLY POLITICAL ~ SOCIOLOGYCAL BRIEFS LEFTISTS OPPOSE 'ERA' BILL--To~kyo, 30 May, JPS--The communist, socialiat parties, the General Council of Trade Unions of Japan (SOHYO) and five other , central organizations are to hold a"central ra11y of national united actions for opposition to the legislation of Ch~ imperial era name, for thorough - investigation into the aircraft acandals, and the Kim Tae-chung abduction case," on June 5 at Hibiya Park in Tokyo. The eight organizations are also calling on the people to participaCe in united actions on that day through- out the country. The liaison council opposing the legislation of the im- peri~l era name on May 29 carried out a demonstration calling on the people to defeat the bi11 for legislation of the imperial era name (gengo). Several hundred people raised voices, "We need an inveatigation into the aircraft now. Not the bill for Gengo." The Osaka and Kanagawa prefectural coma?ittees of tne executive comnittee for abrogation of the security treaty the same day conducted petitions to the Diet, demanding the scrapping of the bill for Gengo, and inquiry into the aircraft related acandals. [TextJ [Tokyo JPS in English 0902 GMT 30 May 79 OW] CSO: 4120 3 � FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-0085QRQOQ1 QOQ60019-4 , FOR OFFICYAL USE ONLY ECONOMIC , EXP~RT REVIEWS ROOTS OF FRICTION WITH UNITED STATES Tokyo ASAHI JANARU in Japaneae 13 Apr 79 pp 12-17 [Article by FumiCos hi Takahashi, deputy chief editor of ASAHI JANA.RU: "U.S.-Japan Economic Friction in Che Midst o� Che 011 Criais"] ~Text] The "season" for acCivity in United Statea-Japaneae relations began in April. With an eye toward the Japaneae-American summit talka in April and the "Tokyo Summit" in June, Foreign MinisCer Sonoda s tarted thinga off by visiting the UniCed ~tates to begin resolving ~ the economic friction between Japan and the United 5tates and to rush to repair the breakdown in Japanese-American negotiatione over liberali- zation of government procurement. Nevertheless, the United States has taken a hardline stance and has mounted an offensive againat Ja~an and, in t;~r~,e background, there is unusual. i:.ritation with the breakdown of President Carter's global strategy. Zn this aense, the recent friction between Japan and the United States is not simply an economic problem. It is deeply and cloaely connected with the Organization of Petroleum Exporting Countries (OPEC) raising the price of crude oil, with the United Statea heavy-handed caaneuvering for the Middle East peacc, which brought on the price increase, and with the Iranian revolution. Since the United States-Japanese negotiationa on liberalization of govern- ment material procurement ended in failure, it seems as though the scenario for resolving the friction between Japan and the United States before Prime Minister Ohira's visit to the United States may have run into early tro~~~e. In the view of a high government official who deals with international economic issues, however, a feeling of confidence in Prime Minister Ohira has been growing recently within the United States government. This may be somewhat hard to believe in view of the barrage of personal letters from President Carter which came after the promise of a 7 percent growth ~ade during the Fukuda government was abandoned and the post of minis ter of external economic affairs was aboli.shed. Nevertheless, when Secretary of the Treasury Blumenthal, Spec3al Representative Owen and oChers came to Japan one after another in March, Prime Minister Ohira 4 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047102/09: CIA-RDP82-00850R000100060019-4 _ FOR OFFICIAL USE ONLY ehowed a very poeiCive aCtitude Coward reaolving the economic friction beCween Japan and the UniCed Stares and rhis, reporeedly, wae rarher we11 appreciared. If Prime Minieter Ohira were truly winning appreciation abroad in proportion Co hia loes of populariry aC home, Chut would be all right because of Che urgency of reaolving international economic iasuea. The aituaCion, however, is not thaC aimple. If Che o Cher s ide, which has �ormed the idea that "Chis ia a person who can be Crusted," discovers that he ie acCually not to be Cr~seted, then rhere wi11 be a strong reaction and Che feeling of miatruat will grow a1L of a sudden. There are high of~icials in Che Foreign MiniaCry who are seriously concernPd abouC this, What should Prime Minis ter Ohira do to reapond to the United States trusC in him? There is only one answ~r. He can only agree to a fairly great extent to what the United S taCea ~.i~~mands . On Chis score, there is a view that even the unsatiafactory progresa of the recent Ushiba-Strauss negatiations on liberalizaCion of government material procurement was "a plot puC Cogether by the ForeiKn Ministry." In short, the uperative consideration was that "for the sake of what might happen later, it would be best Co give the atill alow-moving Prime Minister Ohira a shock by having the negotiations break down." The evidence for this is that although Ushiba, who was the government's repre- senCative for the Tokyo Round (Che M~ltilateral Trade Negotiations), met twice with SCrauss, who ie the United Statea President's special trade represenCative, in the end Ushiba did not requeat orders to continue the negotiations. Since liberalization of government material procurement is one of the main items in the Tokyo Round, Mr Ushiba went as far as to delay his departure for Washington for a day as he pushed for adjustments by requesting increases in the amounts to be liberalized for Nippon Telephone and Telegraph and the Japan National Railways. Nevertheless, the result was that liberali- zation was limiCed to "an amount equivalent to $5 billion." From the - Japanese newspapers, Washington knew Chis figure before the negotiations with Mr Ushiba~ It seems that Japan had politically resolved to add on another $.5 to $1 billion if Mr Ushtba had requeated ins tructions to = continue negotiations. Howe~�er, the amount the United States is to ;.�.beralize in connection with Chis issue is $12.4 billion and the EC counLries have come forward with a figure of $10.5 billion, while Japan is being asked for $7.5 billion to match these amounts. The reason that Mr Ushiba~ who is a veteran ~vho excels in this aort of negotiation, did not go ahead and reques t instructions was probably that he decided thaC the United States could never be persuaded by adding a bit to the figure. In fact, in Washington, after the negotiations bro~Ce off~ Mr Ushiba 5 FOR OFFICIAL USE ONLY . APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047102/09: CIA-RDP82-00850R000100060019-4 FOR OFF'ICIAL ~JSE ONLY confeased, "The decision was weak, I am ashamed o~ it but there ia nothing which can be done about iC," Ae a preae conference af ter he reCurned Co Japan he said~ "Maybe I was wrong in not requeating in- structione buC I was not conEident the issue could be settled." Ir has been said khaC Che main reason the negoCiaCiona were nr~C setCled ie that the United States presaed a trongly �or the release of mainline electronic communications equipment and other "hoatagea," buC it is safe to say that ~ the sCatement released by the office oF the United S tates apecial trade _ representative reflected the atren~th and severity of rhe Unired Statea demanda to Japan ~ust as Chey stood. The statement said blunCly, "The Japanese proposal is totally insufficient, United S taCes liberalization based on the Code of Government Procurement will not apply Co Japan." Why did the friction be~ween Japan and the UniCed States become so serious? In some cases, an indulgenC view of Japan's economic diplotnacy has been pointed out~ There are still high government officials who rack their brains wondering that "they do not clearly understand why economic friction between Japan ::~d the United S Cates has come out so sharply ~ aC this poinr in time." Of course~ with the faet pace of the high yen, Japan's exports to Che United States have gradually slowed down and~ beginning around last fall, the balance of Crade began to improve. At the beginning of this year this trend was particularly conapicuous; exports of s teel~ automobiles and televisions~ which are major items for export to the U nited States, have declined by comparison with previoua years~ IC is certain that increasing the import quotas for beef and orangea as the United S tates requested previously, or the matter of liberalizing material procurement by NTT will not dramatically change the Japanese-United States trade balance, Nevertheless, inasmuch as the Japanese-American economic friction has already gone on implicitly and explicitly for 10 years, since the Japan- - UniCed S tates textile nPgotiations, even the Japanese side aeems to have been op timis tic ~ AC leas t i t is safe to say that on the Japanese s ide no notice was taken of the unusual signals being sent out by the United States and no measures raken to answer back Chat "Chis time would be different from the past." On 18 March~ Che United States Joint Congressional Committee on Economics recommended an economic policy to be adopted by the United Statea govern- menC~ This commiCtee clearly suggested Che need for implementation of an import surcharge by saying in its recommendaCion that it "feels thst it is necessary to take appropriate unilateral measures to encourage countries with a surplus in their ordinary balance to fulfill their international responsibilities." This was not surprising because some people involved in the Congress were already talking openly about legislation to restrict Japanese imports; nevertheless, the fact that an official organ af the Congress produced this kind of document, clearly aiming it at Japan, 6 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-0085QRQOQ1 QOQ60019-4 FOR OFFICIAL USE ONLY made the people around rhe prime miniaCer finally realize rhe seriouenesa of Che aiCuation, with the prime miniater's trip to the UniCed S tates coming up. '1'he UniCed SCares has mounted an offensive against Japan and in order to understand why the AmericAn irritation is somewhat differenC from what it has been up ro now, it is necessary to know the situaCion in which - the Carter administraCion is placed. What we are calling "economic friction between Japan and Che UniCed StaCes" ia in fact no longer an economic problem. It is a problem with very aCrong political avertonea which is not understood by looking only a t trade statistics and other economic indicators. Although Preaident CarCer achieved a rentaCive success by orches trating the conclusion of the EgypCian-Israeli peace treaty, he immediately gathered his close associates at his Camp David retreat and began re~ining a new s trategy on domesCic problems to deal mainly with inflation and the energy crisis. Editorial opinion in the American mass media did nat give Carter even a moment of euphoria over the succesa of his maneuvering for peace in the Middle East. OPEC held an extraordinary general session in Geneva on 26 and 27 March and decided to move this year's fourCh quarter price increase forward and implemenC it on 1 April. It will be a 9.05 percenC increase. Ironically, since announcement of the price increase came on the day following the signing of the E gyptian-Israeli peace treaty, iC nicely upset the White House prediction that "Che signing of the history~making peace treaty would bolster Carter's popularity for at least 3 days." Not only that, buC the price increase also made the American people clearly realize what the resulCs of the Iranian revolution will mean and how sCrong the Arab reaction against Egypt is. Although not in as clear a manner as in the oil shock in October 1973, OPEC has again, in fact, activated "a sCrategy of using oil as a weapon." With the conclus ion of rhe Egyptian-Iaraeli peace treaty Chrough United ' States mediation, the Arab oil producing countries intensified their reaction against the United States and the argument that they should protest Che peace treaty through oil grew stronger. The change of Eace by Saudi Arabia, which had opposed price hikes in the past, was also an indication of this atCitude of protest against the Egyptian-Israeli peace treaty. Furthermore, the OPEC general meeting tried to display the s trength of iCs coordination on production, which seemed weak in the past, by mutually . agreeing thaC simultaneou~ly with Che price increase the counCries which had raised produc tion since the Iranian revolution would return production levels to what they were originally. It goes without saying that this was aimed at making certain of the price increase and was based on the 7 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047102/09: CIA-RDP82-00850R000100060019-4 FOR OFFICIAL USE ONLY consideration rhati the, international aupply and demand aituarion ahould not become too slack even af ter Iranian produc tion atarts up again. In the United States, becauae of increases in the price o� gasollne and other items, the rate o~ increase in consumer pricea for February is ~..2 percent over Che prices for the previous month. As a yearly rate, this comes to a sharp increase of about 15 percent, twice rhe government's estimate (7,4 percent). The policy on in�lation ia at Che point of breaking down. Thus it is probably no wonder that "Middle East popularity" for Carter did not come about~ President C~rter earnesCly Cackled the ~ob of engineering a separaCe Egyptian-Israeli peace because exCernally he was pressed for Cime in ~ reorganizing his Middle East policy in the wake of failure in Iran and domes tically he was pressed to make his movea in preparation for presidential rselection. Howevar, his efforts invited OPEC's oi1 price increase and caused inflation ro worsen. Increases in America's payments for imporred oil and acceleration of inflation both promoCe decline of the dollar. When ~he dollar declines, Che price of imports goes up, inflation pro- ~ gresses and the dollar falls further. This vicious circle has already been proven. The awkward thing is that since the presidenCial election is coming up next year, the siCuaCion has given rise to the view that Che anti-inflation policy which was ~nnounced in October last year will - break down early in its course. Furthermore, there are serious indications that the recent economic situation in the United States has become such that it cannot easily be solved by policy mar.agement which holds down inFlation while controlling business conditi~ns to a moderate degree. In the past, business conditions in the United S tates depended on automobiles and steel, but recently good business condirions have come to depend heavily on housing construction and consumer financing, These things are strongly affected by financial policy, but the United States financial policy cannot now be decided without regard to the dollars accumulated overseas and, therefore, without regard to trends in inter- national economics. However, if American inflation is not brought under control, and continues at its current high rate, it will seriously affect the international economy, particularly in monetary matters and trade, At Chat point the bill for American infla tion moves toward Japan, which boasts excellent strength in trade and mon~:tary marters, and the schema in which this bill is passed on in the form of discriminatory trade measures against Japan is completed . 8 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 I~Ott Ori'FICIAL t15~ ONLY ~ A~tuglly, in som~ re~peceg it ie inevitgble tt~e Che Chru~t of criticiem ehould be conc~nerated on Jgpan. Laet year (January through December) th~ Unit~d S tatee trade dpficit was $2$~450,900,000. The American trade deficit with Japan eet a record with an all-time high ot ~bout $11.6 billl.on. Th~ deficit with Japan increased by nearly SO percent in compari- eon with 1977, despite the drastically hi~h yen and cheap dollgre. In the b~ckground of Chis eitiuation ie Ct~e clos~d nature of Japan'e ielgnd natidn type nf economir etructure. In ehort, we have aet up an economy which is arienCed toward exporte ~ ' while w~ hav~ set up e cordon of import barriers. In the final analyeis, however, this ie deeply related Co nur Japanese way of life car way of thinking and our conceptual makeup. The facC that the Carter government has direceed the thruat of criticism taward Japan also has very eGroag reasons, if one uses the Carter government's logic. Thus, what the United State~ ha~ been decnanding of Japan ie a"structural ad jtiatmeat." It is also a fact that there are some things on the American eide which are different from what they have beea up to now. As former Director of Che CIA Colby points out, legislation in connecCion with Che Tokyo Rouad must be worked out in the Congress. Ninety-nine countries have participated in the Tokyo Round, and the long negotiations are entering the final stages. The intention of tbe develoaing countiies te to decide on their final s taace at the United Natioas Conference on Trade and Developmeat (UNCTAD) which opens in Manila in May, but the advanced countriee of Japan, thp United S tates and ~urope are acheduled to reach an actual agreemeat (initial an agreement) one sCep earlier, in mid-April. Af ter that, it , is arranged that the Trade NegoCiations Committee of the General Agreement on Tariffs and Trade wiLl adopt the agreement formally by a target datP sometime in July and will have the agreement take effect beginning 1 January 1980. The whole effort, hawever, Will go up in smoke if the United S tates Congreae does not accept the related legislation. Therefore, ~ Strauss, who is a powerful m~a ia the Democratic Party, is restrainiag the conservatives in the Congrese on the one hand, and press iag Japan ia s trong terma for concessiona oa Che other hand. In any case, members of Congress who ordinarily have had ao interest in trade and so forth suddenly become active in this sort of situation. Moreover, it is not the Americaa people who are complaiaing and making Japan the bad guy. Chairman Lloyd Bentsea uf the Joint Ecoaomic Coamittee is said to be actually preparing legislatioci Which s~ould levy a surcharge on couatries s~hich have a surplus balance with the Uaited S tates (it goes without saying that this is aimed at Japan), and Strauss ie reportedly tryiag to convince him to give up the idea of proposing the legislation. The outlook is that if the legislation ie proposed, it will surely pasa both houses of Congress. S trauss is said to be scheduled to return to the post of national chairman of the Democratic Party ao later thaa September to work for Carter's reelection aad he is said to waat to straighten out 9 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 ~OR O~Ft~IAL U5~ ONLY the Crade igeue by th~C time, One view is that iC w~g for thig reaeon ~h~t he demanded concegdione frnm Jap~n, end rhat Che breukdown nf theee n~gotiaeinne over the liberalization of gnvernmenC pr~curea~ nt was g gestur~ fnr Am~rtcgn domestic coneumpCion. , In hie prpes conference afCer returning tn Japan, Mr Ushiba said, "Maybe It~presentgtiv~ S Crause Ch~ught it wae to the United 5tates governmeaC'e and his own advgnrage to have acted as he did. There were probably domestic coneiderations." Mr Uehiba's s tatement wa~ elso based on Che view Chat Straues' actions were for domeetic consumption. Again, in its 1980 hudget proposal (October 1979 through 5eptember 1980) the Caxter administration put togeCher a"guna rather than buCter" budget and hae aeked the average pereon to live a more ~useere life than ev~r before. In order to be reelected, President Career tausC firet get the Democratic Party's nomina tion, and Co do that he must geC Che supporC of Che "New Deal Force,~" (blue collar labor, blacks aad the liberal wing) in the Bemocratic Party which eupported him in the la~C election in 1976. At the same time, the hawk faction must be appeased in order to get a two- thirds conaenting vote in the Seaate on the ratification of the Second SCrategic Arma Limitation Talks (SALT II). This meaas that the political dynamics of the Democratic Party and military requiremente demand, rather, f iscal expans ion. Neverthelese, in order Co show an inflaCion-fighting stance, the Carter adminiatration had to put together a tight budget. It is not s trange that they ahould have used "sanctions against Japan" to avert domes tic dissatisfaction in connection with CongressioQal debate on the budget. It was, rather, necessary for them to make Japan the victim. Why, then, are the bullets not flying at Wes t Germany, Which has a grouiing surplus in its balance of trade and current account balance just as Japan does? It is a fact that West Germany does not have the closed economic structure of an island natioa. However, the actual situation probably is that even the Carter administration cannot come out against the reasonable position of West Germany's Chaacellor Schmidt as it caa agaiast Japan. West Germany raised its official discount rate 1 percent per year to 4 percent beginniag 30 March. This means West Germany put up a warning eignal anticipating the effects of OPEC's incrQase ia the price of crude oil and iadustry's wanting to raise prices in the midst of an actual recovery in business conditioas. Since Japan is in enactly the eame situa[ion, some newspapers reported chat "The Bank of Japan began to study raising the of�icial discount rate," but Prime Minister Ohira deaied this, simply saying, "At this point we are aot consideriag touchiag the interest policiea." 10 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 I~Ott d~'~ICtA1, U5~ ONLY 'Th~~ dltu~rion in J:~p~n i~ ~uch Chat it 1~ not pnggibi~~ tc~ Couch thc offtcial ~Il.n~uunt rge~. The ~gnk of Japan has already begun to take pric~g ~eridusly. Wholea~l~ prices are ri~ing gr~dually and land priC~e have alsd rieen. A seriee of incr~a~eg in public utility charg~e ig glso exp~cCed. IC a~ems in~viCable that the pric~ of th~ y~n will be directly a~fecred by OP~C'e boose of ttie crude otl pric~ gnd will drop rapidly gnd, conBequently, impnrt prices wili riee. Thue~, Chere are cn~ny factore which will coneinue to pueh prices upward. However, with a tight money policy, Che aize of the surplus balance will swell all th~ more. This would be embarrassing at a time when the United S tates ie exerting external preesure to open up rhe market by etimulating domestic demand more in order to reduce Japan'e surplus. Neverthelese, West Germany coolly made its decision. If Weat Germany raises interest rae~s nnw, ttoe only will this further increase the pressure on thp dollar, but is is probably inevitable that the rift that has for some time been rumored to exist beCween PresidenC Carter and Chancptlor Schmidt wi11 become greater. Even at the Cime of the "Bonn Sucomit" last year, Carter made an ad~ance visit to WesC Germaay to apply presaure, but Schmidt did not respond and relationa betweea Che tWO men deteriorated. Could one say rhat the fact that Schmidt looks dos~n on Carter as a "country paliCician" and coolly takes him on is one of the differences betwecn the discreet Schmidt and "the Dumb Ox?" _ Nevertheless, Wese Germany and Japan are not in a situation where Chey can , make com~n~n cause. The EC, too, is faaning the fires of criticiam against Japan. The surplus in Japan's trade balance With the EC last year was $6.4 billion, which, c~hen compared with the previous year, representa an increase of $1.2 billion, or 23 percent. 'Furthermore, becauae the yen rate against European currenciea has aot risen as much ae it has against ~ the dollar, the trade goods which have been diverCed from export to the United States have been heading for European markets, actd the surplus balance with the EC has grown every month aince the beginning of this year. ~ Whilhelm Haferkamp, vice president of the EC Executive Commission, pressed strongly for "show specifically by its attitude tt~at it will red~ice the durplus." Furthermore, Haferkamp expressed dissztisfaction with the results of his trip to Japan, and at Brussels, just after he had left Japan, laaked a confidential "Report on Trading Relationships with Japaa" in a way which could only have been iateational. This report took the Japanese to task for !lping "a aation of Workaholics Who live in What Westerners would regard :s little more than 'rabbit hutches."' In an editorial on this question on 30 March, the British economic neWSpaper FIIZAIdCIAL TIMES eaid "The EC has lost patience vith Japan; na+ the EC ia thzeatening to take retaliatory measures if Japaa doea not take e teps to reduce its surplus within the next several months." 11 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 FOR O~~ICIAL U5~ ONLY , 5LnCe ehe poliCicel situation in ehe ~C countries, pareicuLarly in , Brit~in, France and ICgly, is unsCable, "there ee~m Co be po~iCical con$id~igCinng h~re, Co~, which are aim~d ae Japan. lr is ae ~hough America and ~urope ar~ alined rogeeher in an atra~k on Japan, and in Che midst of this aetack from all side~ ehe d~teg for the Tokyo 5ummie are rel~ntleegly pregsing clo~er. If, in ~ degire only to make g succesa of the To~yo Suamit, Japan were to p~tch ehings up by paying 1ip service, and iC w~re to become known laCer thaC promiaes were noC kepC, distrusr of Japan would grow evQn greater. Thus, since thp UniCed S tates and Europe will nor be convinced as things nc~w etand, the Tokyo Summit could not only be painful for Jepan, bUe there ig a aerong possibiliCy ChBt iC will be non-produceive ~nd to no purpoae. Kowever, Che past four Cimes summit conferences have been held thus fgr, they h~ve been basSCally non-productive, so once more would noe be eo surprieing. It is certain, however, ChaC the Cime has cnme fnr Prime Minister Ohira eo make a clear decision. COPYRIGHT: Aeahi Shinbuneha 1979 9111 - CSO: 4105 . 12 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 ~Ult O~~ICIAL USE ONLY ECONOMIC CANADIAN AMBASSADOR DISCU55ES JAPANESE TRADE, INVESTMENT Tokyo ASAHI EVENING NEWS in ~nglish 2~, May 79 p 6 OW [Keport on Inrerview with Bruce Rankin, Canadian Ambassador to Jnpan by 5hfg ~ujitar, date, place noti given] [Text] Canada provides Japan with the best market in the world becauae it is Che only ma~or trading partner that does not impose restrictiona on the importa of Japanese automobilea, color televieion seta, steel and electronic producta, according to Ambassador for Canada Bruce Rankin. But he did not think Japan was doing much practically to import more Canadian finished and semifinished products. Concerning the buying miesiona that Japan has aent to the United States and the European communities countries~ he said, "I think there's a lot of Windov dressing invnlved. I don't think they're unsuccessful, but they're not as successful as you joutnalists like to make out. Japan should get riLd af its non-trade barriers." Trade Shows Successful The ambassador pointed out that Canada has had conaiderable auccess with the trade shows it has been holding at the Canada Trade Center in Sunahine City in Ikebukuro, Tokyo. He said, "We've had five showa so far, and Che fifth oae ~ust sCarted on 21 May. It's o~ electronics. The shovs have worked out rather well. They have been very carefully put together and Well de- signed, and invitations have been set to appropriate buyers." "I know that the very first shaw made up of furs and ~eWelry did a million dollars worth of business in the first week. They expect to do more than that in the long rua, and the other sho~rs have been similarly successful." "Canada certainly recogaizes that Japan must export," he Went on. "We're the only major trading pa~~tner that is not suggesting Japan should restrict itself in its exports, but we do join other major trading partnere in com- plaining about the difficulties of access to the Japanese market." 13 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 ~OR d~FICIAL U5~ dNLX Itnnkin did not think there had been any great chnnge in the fundgmental Japnneee Covernment ~Cand on Crade and poinCpd out, "We atill have henging he~vily over our headg Che cuetiome inspecCion syatem which can be impused. They may noe be imposed right now, but Che Chreae i~ ther~." CiCing the example of import by Jc~pan of Canadian lumber, he said, "Right now we have no problem of regrgding our lumber. But any Cime eomeone in gnvern- mznt wanta Co pick up his telephone and say, 'Okay, we start regrading Ca- nadign lumber, we have lumber starting to p3.le up on the wharfa. They have ro wait around uneil someone comea around to ~ut his neat little stamp on egch piece of lumber. The lumber will be there for three montha or four months; it will rot and warp. This is despite the fact that Canadian lum- ber standards are recognized all over the world." Cnndu Reactors Are Safe As for the accidenC at Che Three Mile Island nuclear power plant, the am- bassador said, "I think it should improve Candu reactor chances, because Candu is not a lighC water reactor. IC ia not similar in any way Co the B&W reactora wiCh wh�Lch they had difficulties at Three Mile Island. The Candu reacCor has two additional safety featurea which are not found in light water reactors. "It should improve our acceptability on safety sCandards, buC instead we seem to be lumped together with ~verything else as having a risk. We expect the newspapers to do a little more research in writing their articlea. We have built into the ECCS--that's the core of the Candu reactor--beyond Che control of any human being a 20-minute cooling system which is over and above anything that exists in any other reactor. So that when something goes wrong, you don't move into the melting stage. You've got 20 minutes to figure out what's gone wrong and impose other safety measures." He added that Candu is the "only reactor that was designed and built from the ground up to produce electricity," while light water reactors were de- signed originally to propel submarines. Concerning Canadian manufactured goods sold to Japan, Rankin said they to- talled $150-180 million a year, a not unsubstantial sum, and pointed out, "We do $2 to $3 million a year in razor blades. It fascinates me that when it comes down to a real fine piece of steel to take whiskers off your face, a country that is the world's largest manufacturer of steel imports razor blades from Canada." Gtyod Investment Prospects � Asked about the prospects of Japanese investments in Eastern Canada as com- pared to Western Canada where most Japanese investments are concentrated, he said, "Very good. We 3ust had the Ministry cf Industry from thc; Province of Ontario here last week. There are some very successful Japanese enter- prises in that province, including NTN [company abbreviation] in ball bear- ings just outside Toronto. 14 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 ~Oit O~F'ICIAL US~ ONLY "'rhe nutomotive parts industry has much room for ~ointi enterprises, and iC has ~ccesa to the eneire Noith American market. IC's the naeural place for three-way benefits. We would like Co aee Japan utilizing more Cnnadian auta- motive parea in their own autdmobi.le manufacturing industry. We have n good, well-trained labor force. 'i'here are all sores of benefies around OnCario, ~nd rhaC part of Canada is a etable area for manufacCuring invesrment." Aaked about Japanese invesements in the tourist industry, including hoCels, Rankin said, "There are no special reatriceions as long as iC bringa aigni- ficant benefits to Canada. That's the sole yardstick for ~udging whether foreign capiCal--Japaneae or any other capital--comea inCo Canada. We have American capital in hoeel chaina in Canada, although some of the finest hoCels are Canadian owned, including the Banff Springa Hatel. ~ "I think that if you're going into an area which is the sub~ect of rouristic developmenC and you're providing employment in an area where it otherwise might not be provided, there wouldn't be any problem in investment." No Quotas on ImmigranCs Pointing ouC that Canada has no quoCas on immigrants, he said, "Immigration ts based on the competence of the individual. He is given various points based on how well he speaks English or French, yeara of schooling and years of experience. If he's aeeking employment or is qualified to seek employment in a certain area where men are needed, there is no problem. "In fact, Japanese seem to be well qualified. They are highly educated, are hard workers and usually have some capital. We would welcome more appli- cants from among the Japaneae." About 125,000 Japanese tourists are visiting Canada each year, although most of them are currently concentrated in the Western part of Canada. Rankin said, "There's a growing movemenC to visit Eastern Canada. Special package tours have been designed to encourage Japanese tourisCs to move more deeply into Canada with some success. We're getting more Japanese tourists moving into the Toronto, Ottawa and Montreal area and Niagara Falls. They all wanC to see Niagara Falls and they all want to stay in the Banff Springs Hotel, but they're a long way apart." While admitting that he is impressed at the amount of coverage Canada is receiving in Japan, the outspoken ambassador minced no words when asked what Canada should do to inform Canadians about Japan. He said, "No, we don't think that`s our job. We think that's up to the Japanese Embassy in Ottawa. Japan has an embassy in Ottawa and consulates-general in Toronto, ~ Montreal, Edmonton and Vancouver. They've got all the ma3or trading com- panies and 10 Japanese banks in Canada. They've got Cwo Japanese journalis- tic bureaus. That's your job. Our job is to sell Canada to the Japanese." 15 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 FOR 0~'~ICIAL US~ ONLY Crowing InteregC in Japan IIue ltankin added, "I Chink there ia g growing in Jup~n among ehe Canadians, and I think there has been a greater pereon-to-peraon exchange of knowledge. SevenCy-two of the most senior businesamen in Cangda ent dnwn with 100 aeninr Jupaneae businessmen i.n TorenCo earlier thia month in the Canada-Jnpun bueinessmen's conference. And right on the heels of thae, ~he University of Toronto International CenCer held an extraordinarily good seminar on Canada-Japan relaCions with top active academica parCicipa- ting. The interview was conducted in ahirtsleeves becauae when I walked into the nmbassador's office with First SecreCary Jack Derksen, the ambassador said 1 even before shakic~ hands, "Take off your coate. You know ehat the govern- ment has ordered 'no coats.' in order Co save on energy." COPYRIGHT: Asahi Evening News 1979 CSO: 4120 16 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 ~'OI~ n~'FICIAL USL ONLY ECONOMIC 'MAINICHI' EDITORIAL CALLS FOR REVICW OF AVIATION POLICY Tokyn MAINICHI UAILY NEWS in ~nglieh 16 May 79 p 2 OW [Editorial: "Aviaeion Policy"] [TexC] The Japan~se government must~take a new look at its aviation pollcy~ because oi emerging in- ternational and domestic chAnges. The international. - avlation industry as a whole has experienced r~pid development. At the end of March, Pan American World Air~.~ays, the world's leading airline company, wlthdrew from the International Air. Transport Association (IATA). The ~vitndratival of Pan Am unfavorably affected ' the function of ~ IATA~ which sa~v the secession of Northwest Orient Airlines five years ago. Pan A~n's withdra~val ~vas in line with the thoroughgoing liberalization policy of the avlation industry promoted by President Jimmy Carter's administra- tion: In the United States, the IATA agreement on passenger fares has Iost its substance. In February, Northwest submitted a proposal to the Japanese Transport :1Iinistry calling for the introduction of passenger fares 35 percent lower than the current economy fares on the Seattle-Tokyo route. The pcoposal was based on the idea fares must be set in proportion to distance. The idea contradicts IATA's concept that equal fare rates must be applied to identical destinations. The Transport Ministry turned do~r�n ti'orth~vest's request, pointing out Japan Air Lines has no right to extend its services to Seattle. North~a~est then made a proposal to the govern- ment of the�Republic of horea, seeking appraval of a near-30 percent discount on the Seattle-Seoul route. Japan Air Lines reduce its round-trip fares to the United States and Australia~ by 15 per- cent~ and to Europe 10 percent~ eEfectlve in February~ 17 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 i V~\ N~ ~~,UY~~y VuV U\~Ul to adjust diff~rences ln the fares on varlous routes resultln~ from r~pfd changes in foreign exchange _ rates. As [ar tis rout~s to th~ United St~tea are con- - cerned, nu reductlon hus yet been� implemented b~caus~ tl~r Clvll Avlatton Board (Ct1B) nf the Untted States is still examinin~ the propos~l. In avlation, the United States has been qn the oftensIve and .1~pan has been on the defensive. The American airline companies can take aggressive attitudes because they enjoy enormous rights, both domestically and internattonally. In the aviatton industry~ strong rigl~ts mean strong competittve abtlity. Reflectin~ such ~ trend, there exists considerable inequallty in the Japanese�Amerlcan aviatton agreement, ~~~hich ~ve,believe must be corrected. At ,present, ho~vever, there is llttle possibility ot such correction. ~ What we want from the Transport Minlstry and Japan Air Lines is a realistic reaction to American demands. The United States offered recognition for Japan Air Lines' extension of services to Seattle in return for Japan's reco~nition of the 35 percent cut in the Tokyo-Seattle fare. Japan turned that down~ saying inequalities in the treaty must be corrected first of all. Did the rejection benefit passengers? Japan Air Lines no~v ~v~nts to enjoy "fill-up rights" on the Narita-Kagoshima-Hong Kong route, so it caii Ioad or unload passengers between Narita and Kagoshima. The airline company says this will help it economize on fuel and offer more convenient services to passengers,The reasoning is persuasive. If Japan Air Lines pursues the reasoning, it will ha~~e to face similar problems on the Narita- Nagasaki-Shanghai, and Narita-Kumamoto-Seoul r4utes. The company wants the right to solidify its managerial basis in order to . survive tierce in- ternational competition. The company apparently realizes the domestic market is lucrative. ' Under current regulations, Japan Air Lines cannot load or unload passengers betw�een the above points, because its services are limited to domestic ` tcrunk lines and international routes. Judging from recent developments, we believe another good look must be taken at the aviation policy. In examining new policy; we want 4o say F,oliticians must not interfere in such processes and the double-tracking system must be actively in- �troduced, to avoid possible monopolies' on certain routes. Aviation policy must be examined from a long-range viewpoint. ~ COPYRIGHT: Mainichi Daily News, 1979 CSO: 4120 18 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 FOR OFFICSAL U5C ONLY CCONOMIC MITI DECIDES TO TRIPLE GOVERNMENT OIL STOCKPILE Tokyo ASAHI EVENING NEWS in English 26 May 79 p 1 [Text] The MinisCry of InCernational Trad~ and Induatry has decided to increase the target for t~e Government's oil sCockpile from the present 10 million kiloliters by Ct.: end of fiscal 1982 Co 30 million kilolitera by the end of fiscal 1985. The International Energy Agency and many experCs predict thaC there will be a global oil shortage earlier than expected, and the MITI wanta to raise the nation's oil reserves up to the levels of other Western coun- tries. It intends to increase .*.~a SCaCe reserve by buying additional oil during the low-demand season rso that the crude oil market will not be affeceed. The Government is guiding the nat~;,n's oil refineries to secure by the end of fiscal 1979 a stockpile equivalent to a 90 days' supply, but the reduction in supply after the Iranian revolution has made this goal diffi- cult to accomplish. The current reserve in the private secCor is estimated to meet 85 or 86 days of supply. The original target for the State reserve was to secure by the end of fiscal 1982 10 million kiloliCers, enough to meet the needs for about 10 days, on top of the stack in the private sector. The State reserve is now put at 5,240,000 kiloliters or 7.2 days' supply, and 2,500,000 kilo- - liters is planned to be added Co it in this fiscal. year. However, compared with other Western countries, Japan's total oil reserves are very small. As of Mar. 1 last year, Switzerland had a reserve equiva- lent to 140 days of supply, Decunark 133 days, Portugal 122 days, France 103 days, West Germany 101 days and Britain 88 days. Some quarters within the domestic oil industry worry that the Organization of Petroleum Exporting Couiitries (OPEC) and ma~or international oil dis- tributors may oppose an increase in the national oil reserves by a big consuming country like Japan and that such a move by Japan may push up prices on the spot market. But the MITI says the additional buying will be done responsibly. COPYRICHT: Asahi Evening News 1979 CSO: 4120 19 ' FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 FOR OFFICIAL USE ONLY ~CONOMIC BRIEFS MITI POLICY--The two paramount concerns of Ministry of International Trade r~nd Industry policy for JFY 1980 are energy and international trade fric- Cion. Against this background, MITI policy aims include: 1. establishing comprehensive bilateral econom3c cooperation plans, 2. development of software coupling data and communications, 3. new legislation for modern- izing the distribution system, 4. structural improvemenC of the oil refin- ing industry and revision of the Petroleum Industry Act, 5. eaCablishing - an organizaCion to promote acquiring overseas mining concessions for coal, uranium, iron ore, etc. 6. strengthening medium and smaller firms in Che sofCware areas of collecting information and technological power. [Tokyo NIHON KOGYO SHIMBUN in .iapanese 22 May 79 p 1] , CSO: 4105 20 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 FOR OFFICT.AL U5E ONLY SCILNCC AND 7'GCHNOLOGY JAPAN WILL PUSH FOR JOINT INT~RNATIONAL TECHNOLOGY VEN'PURES Tokyo THE DAILY YOMIURI in English 21 May 79 p 1 ~Text~ Japan will push for ~oint international Cechnological ventures in such areas as electronic computers and aircrafC, Masumi Esaki, international trade and industry minister, has announced. Touching on the reported capital tie-up between Toyo Kogyo and Ford Motor, the minister said that an international division of production should not be restricted to the automobile industry but be encouraged in other fields. The ministry's new policy, as outlined by Esaki, marked a ma,jor turnaround from iCs erstwhile stance of helping 1oca1 enterprises build up the inCernational competitive edge. The departure from the old policy was prompCed in parC by a growing tendency among foreign industrial giants to join hands, according to observers. In case of Che auto industry, the American Big Three are already in tie-up with Japanese makers. Toyo Kogyo is producing small trucks for Ford; Isuzu Motor is making Crucks and passenger cars for General Motors and Mitsubishi Motor, passenger cars for Chrysler. With the economic growth slowing down worldwide, it would be too risky for individual firms to go it alone in either big-scale investment or development of new technologies and sales markets, according to experts. The MITI believes that the two biggest carmakers here, Toyoto and Nissan, also back the idea of international. cooperation or production sharing. In 1971 when capital inv~stment was liberalized for up to 50 percent, the MITI played a role in reorganizing computer makers into two groups. 21 FOR OFFICIAL USE QNLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 I FOR OFF'ICIAL USE ONLY One group was made up of ~u~iCau Limited, HiCachi and MiCsubiahi L1ecCric Corporation, and the other of Nippon Electric CompAny and Toshiba Corporation. The two groups are vying againsC each other Co develop inrernationally more competiCive technology. BuC the ministr.y is now obviously having second ChoughCa about Japan's technological research set-up more or less isolated fr~m foreign conracts. The MITI policy is shifring in favor of international cooperation as a more effective meana of achieving the desired results by scrapping the old "go it alone" idea. Eventually, the ministry reportedly believes it would be necessary to merge the two computer maker groups into one as the sole Japanese force to wnrk with prospective overseas partners. Fujitsu, meanwhile, has entered into an agreement with a West German firm ` tor joint technology development. Such international cooperation should be positively encouraged, Che MITI says. In the production of aircraft, tie-ups with foreign makers would be highly desirable as Japan lags behind in this field. The ministry earlier let it be known thaC it wanted Japanese makers to make rapid strides in the field with their own efforts but now believes that massive investments to fostet the plane industry wouldn't be a paying proposition. - And iP the Japanese successfully produced highly competitive aircraft, the makers would have to sunnount another hurdle--finding good markeCs. Ii? case of an international joint ventL?re, the risk of large investment will be reduced, the job of tapping a new market also made easier at the same time, according to ministry sources. Investigation On Chicago (AP)--A Federal Grand Jury investigation could lead to indictments of top American executives of Japan's largest consumer electronic companies, the Chicago Tribune says in a copyright story in Sunday editions. The newspaper said the investigation by the US attorney's organized crime . and rackeCeering unit in New York centers on alleged corporate payoffs to an International Brotherhood of Teamsters local in exchange for freedom from hijacking and other troubles. 22 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 . . ~dt~ U~~ICtAL U5~ ONLY '1'hi: rcpdrt g~id the inve~eig~tinn ig fdcu~in~ ~t rh~ Cnrpnr~t~ lpvpi nn anle~ arn~~ ot tour Jap~n~~e compgni~e~~5nny Cnrpnr~ttan nC Americg, M~CsughiCB ~lectrtc CnrpnraCi~on nf Americg (Pan~~~ic)~ Nit~chi S~1~~ Cnrp, and Toghiba Am~rica Inc. Th~ union i~ quegCton~ g~id the newgp~p~r~ i~ Team~C~r~ I.dc~l 805~ which r~pr~eb~nt~ gbdue 2,~OU Cruek driverg ~nd war~hougpmpn in Npa York City. ~he Trtbune gaid dee~ile of Ch~ invpgtig~Cinn, vhirh Wag initiaeed ae ehh requegt of the US L~bor nppartm~nC~ rov~rg name~~ a~legatione and specific paym~ntg from 1964 through the pr~sene. - The newapaper gaid iC had obtgined from Wgghiugenn gourceg g copy of g 35-page confid~ntial report prepared by eh~ Labox Manag~m~nt S~rvic~e AdminisCrgCiott. The repore dealg primartly with ev~ntig in Che 1970s and detail8 roughly $300,000 in paymenCg during Chie period of both cagh and aacpeneive elec- Cronics equipment. Under ~h~ Taft-Hartly Act and the Organix~d Crime Control Act of 1970, it ia illegal for union officials to take bribes aad also illegal for corporatione to offer them. The Tribune reported that a regulatory official said both union and corporate officials are targets for indictments. COPYRICNT: The Daily Yomiuri, 1979 CSO: 4120 23 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 ~'dR U1~1~ICLAL U5L Ot~iLY SCILNCL ANll TCC1fNOLOCY UK-JAPAN JOINT J~~ ENGIN~ D~V~IAPM~NT 'Cokyn TN~ UAILY YOMIUtti in Engliah 23 May 79 ~ CT~xt~ Mie~ubishi H~gvy induetri~e iMHi), i~hikaura~ia~a Narima Heavy Indugtripe (tNt) and ltg~ggki H~gvy Industrieg (KNI) have decided to Cie up With itolls-itoyce, c~f Brieain, fnr the development of an aircraft j~e engine, a governmenC sources Tueeday disclosed. T'h~ ehre~ companies will eign a technological tie-up agreement ~?ith the British company in or after June. The International Trade and Industry Ministry (MITI), i+hich favore international specializatior} plane Co back up this project. Th~ three Japan~se companiea and Rolls-~toyce ~rill join haada in research fnr aad development of an aircraft jet engine ~rith a thrust of nine tons. There is a atrong probability that the eugine thus developed arill be uaed in the YXX, a third-generation ~etliner to be developed by Japan's aircraft industry. Rolls-Royce arouad August last year proposed Co Japan's heavy machiaery induetry ~oint production of a jet engine to be developed by the Britiah campany. The Japanese side ~+ithheld an immediate ans~ter because at that time, MITI'~ Industrial Science and Technology Agency had a plan to develop a jet engine by 1980. MITI feared duplication of investment. It Was agreed later to combine the Cechn~logy of the ageacy and the technology of Rolls-Royce, and develop, through joint endeavors, a jet engin~ with a thrust of nine tons. A problem remains for the Japanese side: hov to raise ~SO billion, vhich is the Japanese share of the cost for reaearch and development. OOPYRIGNT: The Daily Yomiuri, 1979 CSO: 4120 24 FOR OFFICI~L USE ONLY I APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 ~Utt O~~ICIAi, U5~ ONi.Y 5CI~NC~ A~!iU ~~CNNOLf~Y MI'TSUI, KAWAT~TSU b~V~LOP Et~VOLUTIONAEtY COK~ PitOCESS Tokyn MAINICIiI bAiLY NEWS in ~nglieh 25 May 7g p S ~Text~ An epoch-making plant proceag deaigned to recover and remove anmonium in coke oven gag has been ~ointly developed by ehe Mitgui Construction Co. and the KawaCetsu Chemical Industry Co.s iC Was aqnounced recently. Called the KAMIAM syeCem, the neWly developed process will not only reduce costs involved buC contribute greatly to prevenCing industrial pollution. The ~oke oven gas liquor produced in the procese of manufacturing coke containe ammonium, hydrogea sulfide, cyanide, carbonic acid gas, in addition to oily subsCances and phenol. Ordinarily the COG liquor is disposed by the activated sludge disposal system after removing ammoaium, hydrogen aulfide, cyanide and carbonic acid gas by steam stripping. Thc KAMIpM system developed by the two companies, a kind of ateam stripping process, has the follor~ing ouCstanding features: 1. Although fixed ammoaium in the gae liquor cannot be removed by the existing methods, the KAMIAM system is capable of resolving and removing it by using lime. 2. Since quicklime or calcium hydroxide is used instead of expensive caustic soda to resolve fixed ammonium, the runaing cost can be reduced greatly. The cost of alkaline agent used for fixed ammonium per ton is 26,000 yen in the case of calcium hydroxide (s~ack lime) and 118,000 yen in the case of caustic soda. 3. Since the new process does not cause clogging by the uae of lime, it can be operated continuously for long hours. 4. The still requires cleanf~g generalYy once a year ~+hereas ~rith the ordinary process it requires cleaning once every two months. Since the new cleaning method does not require dismantling of the column, operations can be resumed in about eight hours. 25 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 ~OR (1~~tCIAL USL ONLY 5. Wieh Che gddpeinn nf the li�e eray, ehe amoune nf ge~am c~n b~ r~duC~d gnd eh~ di,~mee~r df ehe column ig about nne half Che nrdinary one regulting in a cost-down. Th~ new ~ygtem w~g developed at a eo~t of about 200 million yen. Ttie h[itgui CongtrucCinn Cd. plgng Co aC~g~ full-fledg~d gglee gcCiviCie~ boCh aC home and abroad in aneicipaCion nf stricter regulationa againgt aamontum. A KAMIAM Byetem plant, capable of disposing of 40 to 50 tona, ia expected Co " be pric~d ~t 800 million yen. The two companiea have already filed pgCene applicationg wieh six Wesrern countrips. A Mitaui spokeaman also reported that at least one KAMIAM p1anC will go into operaeion ae home within Che year. COPYRIGHT: Mainichi Daily News, 1979 . CSO: 4120 26 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 ~Ott O~FICTAL USL ONLY SCI~NC~ AND T~CHNOLOGY Ntt~A URGES ENERGY R~S~AItCli FUNUING Tokyo MAINICHI DAILY NEWS in ~nglish 23 May 79 p 5 ~Text~ The Natural Reaources and ~nergy Agency hae decided to seek legislaCion of new Caxeg eo finance dev~elopmenC of new sourcea of energy, officials said Monday. The agency will press for legislation of ineasurea to promote developmenC of new energy sources (including coal liquefaction), inatitute new taxea and set up a special fund to pool money Co finance alternate energy deveZopment efforts. The agency, which comes under the Ministry of International Trade and Industry (MITI), will try to talk the Finance Ministry and other government ~ifice~ as well as the ruling Liberal-Democratic Party into agreeing to include the measures in the fiscal 1980 government policy, the officials ~aid. The move has been promoted by prospects far future oil supplies being clouded by uncertainties in the Mideast situation and moves of the Organization of Petr~leum Exporting Countries, Warnings by the 20-nation International Energy Agency and the U.S. Central Intelligence Agency that an oil crisis would come in 1985 or earlier also have added to a general feeling of urgency. The officials pointed out the need to speed development of coal liquefaction technology and geothermal, solar and other new energy sources to enaure the natioa's economic security. The agency will also seek fiscal and monetary help aad tax credits for the electric power, steel, petrochemical and other major oil-consuming industries - to switch to other sources of energy. The planned taxes of abo�C 1.5 percent on electricity, gas aad petroleum products will create funds of about 230 billion yen each year, according to present estimates. 27 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 ~OR OFFICIAL U5~ ONLY t3ecau~e key aub~ecrg fnr digcusgion ~r Ch~ economi.a gummie in Tokya nexe month are exp~cred to include the energy problem, MITI ie working c~uC an E~nergy aCrategy Co ehow g poaitive ~tanae on ehe part of Japan~ ehe world's gecond large~r imporCer of crudc~ oil. COI'YRIGHT: Mainichi llaily News, 1979 CSO: 4120 28 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 ~'OEt d~~ICIAL U5C dNi,Y SCI~NC~ ANU TCCHNOLUCY BRIEFS ~AINBOW PROJECT--A government-related gource reporCs that Che Agency of Industrial Science and Technology inCende Co atart a new "big pro~ect" energy program on biomass conversion systema. The pro~ecC, a parallel Co Che Sunshine and Moonlight pro3ecCs, is expected Co require funding of 50 billion yen over 10 years. A budget of 2.5 billion yen will be sought for JFY 1980, the f irst year of the program. [Tokyo MIHON KOGYO SHIMBUN in Japanese 25 May 79 p 1] MITI SPAC~ COI~tITT~~--The Ministry of InCernational Trade and Induatry (MITI) has declared its intenC to embark on fostering a satellite indus- try and to tackle research on launch of a resources survey saCellite. Judging Chat launching satellites is moving from the research to the practical stage, MITI is setting up a"Space Development Research Com- mitCee" and intends to create a governmental-private satellite develop- ment organization including the Science and Technology Agency, the Minis- try of Posts and Telecommunications, and so forth. This is the first major move by MITI in the space development field. [Tokyo NIKKAN KOGYO SHIMBUN in Japanese 18 May 79 p 1] HTCR PLANNING--The Japan Atomic Energy Research Inatitute has placed an order with Fu3i Electric, Hitachi Ltd, Japan Atomic Power Co, and Mitsu- bishi Heavy Industries for the comprehensive systems design for an HTCR featuring production of 1,000�C helium at 40 atmospheres pressure. Pre- paration of detailed designs for the reactor is scheduled to start in JFY 1980 and run about 3 years and construction of the reactor is planned to start in mid-JFY 1983. [Tokyo NIICKAN KOGYO SHIMBUN in Japanese 29 May 79 p 6] CENTRIFUGE ENRICHMENT--The first 1,000 uranium enrichment centrifuges have been installed at the PNC's Nigyo-toge pilot plant. If all goes smoothly, test operation will start in July and regular operation in August. Installation of the improved OP-1B and OP-2 centrifuges (3,000 centrifuges each) is scheduled for next year and year after next. [Tokyo GENSHIRYOKU SANGYO SHII~UN in Japanese 10 May 79 p 3~ 29 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000100060019-4 ~OIt U~~TCIAL US~ ONLY CUAL LI(~U~FACTION pLANT--'The Ag~ncy uf Indu~Crigl Snipnc~ & T~chnningy, MI'~I, has ~sked Sumitomo MeCal Indugtries gnd Sumitmm~ Cngl Mining Cn r~vi~e plgne for g 40 ton-day pilot plant for solvenr cngl liquef~cCion Co be completed in J~'Y 1985 inCo plan~ for ~ 250 ton/day piloC plant Co be completed in JF'Y 1984. xhe two firme have ~uat ~tarted a construction nf a 1 eon/day plgnr gnd have miegivings abouC attempting such a quenCum ~ump but aee some posgible advanCages. They are gtarting a feasibility study fdr a plant snmewhere in size between 40 and 250 eon/dgy capaniCy. The gnvernment presaure is viewed ge a reeulr of thp woreened oil gitua- tion and a desire to promeCe technology for Che Japan-U.S. liquefaction prn~ece thaC was gn outgrowth of Che Ohira-Carter meetinga. (Tokyo NIKKAN KOGYO 5HIMBUN in Japaneae 29 May 79 p 1~ SHIPBUILDING COMPUTERYZATION--Hitachi 5hipbuilding & Engineering has com- puterized procesging of shell expansion for the bow and etern of ahips~ reducing time required by half. This labor saving is aignificant for medium and small shipa, and Hitachi inCende to aell the system overaeas via Hitachi Shipbuilding Information Syatem. [Tokyo NIKKAN KOGYO SHIMBUN in Japanese 19 May 79 p 1] AUTOMATED SHEARING LINE--Koga Kozai, ~oined by Aizawa Tekkosho, has devel- oped a fully automated numerical-control shearing line said to have an operating efficiency five-fold thaC of convential linea. The line will go into operation Chis monCh. [Tokyo DENPA SHIMBUN in Japanese 23 May 79 p lOj TI'CANIUM-CLAD ALUMINIJM--Kobe Steel has developed a low-cost, high-quality tit~nium clad aluminum plate. The material, clad on one or both sides by vacuum soldering using an SiA1 solder, can be used for electrodes, chemical tanks, pipes, and other applications. [Tokyo NIKKAN KOGYO SHIMBUN in Japanese 23 May 79 p 6j IMAGE RECORDING MATERIAL--Fuji Photo Film has developed a new image record- ing material structurally composed of a protective layer, a metal thin film of Sn plus SnS formed by vacuum deposition, and an undercoating of polyolefin on the base film. This laser direct recording film is a heaC- mode type, and hopes are high for computer and facsimile applications. [Tokyo NIKKAN KOGYO SHIMBUN in Japanese 16 May 79 p 5~ PLASTIC MAGNET--A Tohoku University research group and Mitsubishi Steel have ~ointly developed the world's first plastic magnet usable at 180�C by using a boron (B-t) polymer as the bond material. [Tokyo NIKKAN KOGYO SHIMBUN in Japanese 18 May 79 p 5] CSO: 4105 END 30 FOR 0:'FICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000100060019-4