JPRS ID: 9790 JAPAN REPORT

• Document Type: CREST
• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000400020029-4
• Release Decision: RIF
• Original Classification: U
• Document Page Count: 45
• Document Creation Date: November 1, 2016
• Sequence Number: 29
• Content Type: REPORTS

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JPRS L/9790

_ 12 June 1981
.~a a~ R~ orf
~ p
(FOUO 35/81)
~g~$ FOREIGN BROADCAST INFORMATION SERVICE
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~
- JPRS L/9790
12 June 1981
JAPAN REPORT
(FOUO 35/81)
CONTENTS
ECONOMIC
, Aspects of Current, ~lZture Financial S~stem Analyzed
(TOYO KEIZAI, 28 Mar 87.) 1
I
17iscussion of Green-Card System
, Growth in Postal Savings
Risk of 'Financial Socialization~
Reexamination of Green-Card System
SCIENCE AND TECHNOLOGY
GDR Chairman Asks Japanese Cooperation in Advanced Technology
(NIHON KEIZAI SHIl~SUN, 12 Mar 81) 21
Titanium Froduction in Japan R,~,pidly Increasing
(Ma,sao Aoyama; NIKKAN KOGYO SHIl~UN, 16 May 81) 22
Mitsubishi Metal Corporatian To Start Producing Titanium
~ Within 3 Years
i (MAINICHI 5HIMBUN, 24 Apr 81) ~5
i Study of Liquefied Hydroger, F1ie1. for Y,-1 RockEt Promoted
' (Itsu Hiraki Interview; NIKKEI BUSINESS, 12 Jan 81) 27
- East Germany To Import Industrial Robots From Japan
(NIKKAN KOGYO SHIMBUN, 20 May 81) 32
Laser-Sensing Machine To Ins~;ruct :~obot in Job Environment
Developed
~JAPAN ECONOMIC JOURNAI~, 26 May 81) 33
F1z11-Size Steel Frame Models To Be Used for Earthquake Testing
(JAPAN ECONOMIC JOURNAL, 26 May 81) 34
_ ~ a- [III - ASIA - 111 FOUO]
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Legality of Cartel for MachinP Tool Upheld by W. Germany
( J~.PAIJ ECONOI~IIC JOURNAI,, 26 May 81) . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Government, Semiconductor Industry Work To~ether
(JAPAN ECONOT2IC JOURNAL, 26 May 81) 3b
MITI Ih~afts Interim Petroleum Policy Report for 1980~s
(JAPAN ECONONfIC JOURNAL, 26 May 81) 38
Kyushu Electric To Operate ~i.rst OTEC Type Power Plaxlt
(JAPAN ECONO~NIIC JOURNp.L, 26 May 81) 39
Livecon Develops Method To Prodtzce Stronger Concrete
~ (JAPAN ECONOP~C JOURNA.I~, 26 May 81) 1~0
Brief s
Industrial Robots Fxport 1~1
- b -
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E CONOMI C
ASPECTS OF CURRENT, FUTURE FINANCIAL SYSTEM ANALYZED
Discussion of Green-Card System
Tokyo TOYO KEIZAI in Japanese 28 Mar 81 pp 20-24
[Excerpt] Participants: A, financial reporter; B, Ministry
of Finance reporter; C, economic commentator; D, company
employee; 0, social department reporter; P, securities depart-
ment reporter; Q, stock market commentator.
t!,agazine staff inember: Introduction of the green-card system was made into law
but its position has become strangely shaky with the governing party leaders'
statement that it should be reconsidered. We would like to have you analyze
- the behind-the--scenes developments that led to this. The most obvious develop-
ment in the governing party is the pigaon-holing proposal of Political Coordina-
tion Committee Chairman Abe.
A: He says: "We were won over to the green-card system by the bureaucrats
before we really understood it. When we thought it over carefully we saw that
it was a big problem."
The justificati.on for reconsidering the measure as advocated by the politicians,
beginning with Abe, is that a great shift of funds from banks to postal savings
has occurred. Then there was the recent money boom. All this was due to the
influence of the green-card system, and if we are not careful, money will flow
overseas and people may panic and try to convert money into goods. If this
happens, they say, the pattern of Japanese savings is in danger of collapsing.
D: But what I am wondering is, "Why now?", when the date of execution is set for
1 January 1984. If we turn this inside out, it exposes the politicians' ignorance
of economics.
A: It was the politically ignorant baalks which woke up the economically ignorant
politicians. When two tone-deaf people start singing, discordant notes come out
eve rywhe re .
Voting Base Is in Danger
D: When you put it that way, the reason for the reconsideration is almost the
same as the bank's reasons for protesting the green card.
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A: The banks have lost every game in the series so far. With the revision of the
Bank Law, Nomura Securities Company and Mitsubishi Bank had a death match and
the king of the banks, Mitsubishi, lost. Then with the green card, they were
thoroughly pushed around by the post office. The banks have learned a bit late
how little political power they have.
Then, the presidents of the banks took. about 20 Diet members each and hit them
with night raids. They ran around bearing gifts.
D: And this resulted in the reconsideration idea?
A: However, the only ones who are taking the position of the banks and shouting
for reconsideration are the Fuku3a faction. Of course, behind the scenes, an
obstinate quarrel is taking place, with the bankers and Fukuda faction against
th.e postal savings people and the Tanaka faction. But even in the Fukuda faction,
there are only a few people involved. That's because anyone who says, "I am on
the side of the banks," is sure to lose his head.
D: Why is that?
A: If one announces that he is with the Postal Ministry, the special postmasters
will gather election votes. In addition, the post office activities require an
- investment of public funds equal to that fo r Tokyo Electric Company in order to
assemble the latest technology. Below the post office is a crowd of small sub-
contractors and related manufacturers,
D: A nest of political contributors.
A: That's right. Even the securities companies, which also oppose the banks,
are skillful at ieeding desirable mone~~ to the politicians even though it smzlls
bad. For example, they can make an investment using a politician's name and
then declare that he has made such and such a profit and make him a presei.it of it.
D: However, even with this difference in levels of political power, th~ idea of
reconsideration arose within the LDP because the banks make an effort beyond
their actual power.
C: That may be true. It's because the LDP was attacked by the wealthy class
that makes up its voter base. "This green card is ridiculous. The bank deposit
restriction was bad enough, but now we have to consolidate our accounts under one
name in postal savings where we used to be able to evade taxes. What are you
guys trying to do?"
A: The LDP only began to understand the size o� the problems when they were
harshly criticized. Up to now, the only pattern in their heads has been the
antagonism between postal savings and securities companies and banks. So they
thought that it was all right to take the part of the post office and securities
companies with their benefits to the politicians.
But when they noticed what was happening, the green-card system was not as simple
a matter as it seemed. They realized that when postal savings also became subject �
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to account consolidation, the second source for the budget and Public Finance
Loan and Investment Program would move elsewhere, making it difficult to collect
savings. Money for the 1982 budget could not be collected from postal savings.
= These are the ironic conclusions that we hear now. Because of this, the Postal
Ministry people are also coming out with the idea of reconsideration.
D: The politicians will use their power to grab their share of the Public FinnT~~
Loan and Investment Program money and there are other sou_~c.~ such as public
utility expenditures. This leads to a danger of politicisns losing their votir.g
bases.
A: A~~tually, the postal savings interest rate was revised right after the seccnd
reduction in the prime rate last year. As proof of this, the amount of increase
in postal savings in February this year fell to 65 nercent of the increase for the
same montli last year. The feeling of crisis acted on by the banks all last year
produced an opposite reaction, the idea that it might be best to deposit in postal
savings while there was still time. And postal savings collected close to 10
trillion yen. From now on, because of the coming (on 18 March) third prime rate
reduction and fear of the green card, there is a possibility of a sharp drop in
postal savings.
C: Another real concern of the politicians is that a lot of their own hidden
funds seem to be in postal savings.
Ministry of Finance Fiercely Opposed
D: In Abe's thinking, the next year will be a test period. He wants to decide
whether to postpone execution of the green-card system or suspend it after watch-
ing how funds move.
A: However, if it comes to postponing or suspending introduction of the system,
this will also be disadvantageous to the banks. The green-card system will not
be done away with entirely. If it is postponed, people will decide to keep their
money in postal savings while there is still time, and the banks will be hurt by
postal savings just as they were last year.
D: It doesn't matter whether they run or fight. They get hurt eitt?er way.
- C: The post office, on the c~ther hand, has a way out even if the green-card
s~stem is instituted. An individual pension system will be started this
September. With a lifetime pension at the maximum of 720,000 yen per year, one
can accumulate 12 million yen. Of course, it is tax free. If it is a 5- or 10-
year limited pension, with deposits made for 3 years, one can have the same
amount of tax-free savings as with a time deposit.
D: In that case, is the Postal Ministry ,just bluffing when it says that the
budget cannot be met if the green-card system is used?
C: No, not really. The money that would go into individual pensions is only a
small part of the money that would be caught in the net of the green-carc:. system.
The difference from the bank situation is that, even with the green-card system,
the post office still has another place for some of the money.
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I3: flowever, postponement is unthinkable. The Ministry of Finance is not respond-
ing at all to the LDP's argument for suspension of the system.
According to the Ministry of Finance, there is already a national consensus for
- the need to correct the unfairness in the tax system. Initially, this was
harshly criticized as a system for putting a uniform number on every citizen, but
ultimately agreement was reached with the voluntary green-card system. And last
March, as legal preparation, the incou;e tax law was revised. No~ that we are just
waiting for the system to be carried out, the Ministry of Finance asks, how could
the LDP change its mind?
The Ministry of Finance is taking this rather strong stand. Isn�t Japan a country
governed by law? Once a law is passed, it is ridiculous to talk about reconsider-
ing it before it is even carried out.
D: I agree. If this is reconsidered, there will be a strong protest, especially
by workers. They work and slave every day and then 100 percent of everything
down to the last drop of sweat is taxed. And in spite of this, those who do not
work as much are given favorable tax treatment. Why?
If these silent voices are ignored, a taxpayer's revolt may occur even in Japan.
C: That is the view of justice. But there are some thing~ that cannot be solved
by justice. It may be unpleasant, but I believe a last resort is necessary for
people with a little money.
D: What do you mean?
C: By a last resort, I mean a source of vitality for people who have money.
People who have thought Lhrough how funds can grow will not do anything if there
~ is not some money to be made. I think it is a bit unfair to stamp ouC all tax
havens and then tell the owners of small businesses, store owners, or business
organizations to invest more in facilities or make speeches about more action
by the private sector.
A: I believe the focus of attention from here on out will not be on postpone-
ment or suspension but on what sort of remedial measure the LDP will come up
with.
Toward Serious Public Unrest
A: I think there will be a little revision.
C: If this were America, a bill would be introduced by a member of Congress.
Here, attention is focused on what procedures the LDP will take.
D: But the opposition parties won't keep quiet about this.
C: No, on the green-card problem, some fluctuation is beginning to appear even
in the opposition parties.
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For example, in the Democratic Socialist Party, adviser Ikko Kasuga was greatly
opposed at first. With his uniquely deep perception, he judged very early that
- "if we support the green card, the owners of small businesses who make up our
voting base will turn away from us." As expected, a terrific backlash movement
is occurring naw in Nagoya and Osaka. The party itself will probably have to
go along with revision.
In terms of the present political balance, if a revision ~il~ were introduced
- which could cooidinate the interests of all parties, it just might pass.
A: The simplest proposal for revision is the one loudly advocated by the post
office--to raise the nontaxable limit to 5 million yen.
The Postal Ministry says that if the green-card system is instituted as planned
in 1984, postal savings will fall off sharply in late 1983. If this happens, the
government will not be able to collect enough money for its budg~t. This is the
_ standard argument.
C: But even as a revenue source measure, the Ministry of Finance will throw it
out,
A: A strong proposal which has sprung up receztly is the idea of single taxation.
Under this proposal, postal savings and bank deposits would be taxed at the same
ra te .
D: But the Postal Ministry will not let something like this happen again. It
would be like asking for a Copernican revolution.
A: No, there is more. This proposal is to set the tax rate at 10 percent. If
this is done, neither the banks nor the post office can say that it is more
beneficial or harmful to one side or the other. They will be facing each other
in the same ring. The advocates of this p roposal are calculating that even if
the rate of taxation is only 5 percent, revenues will increase.
- In a sense, one tax would also help to leave the last resort spoken of by Mr C.
D: However, one tax might mean preferential tax treatment even worse than what
we have now.
A: That goes back to a problem of value judgment. Opinions are divided on our
stance taward the vitality of Japan's free enterprise system. Is perfect
equality actually best? Or should we give so~2 breathing space to wise people
with money in order to obtain vitali:y.
D: Suddenly I feel as if I con't have enough money Qr wisdom (laugh).
B: I have a slightly different opinion. I think that either postponement or
suspension of the green-~.ard system would be very difficult.
If a revision is made, the time limit is 1984. By then the atmosphere will not be
right for revision.
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The second phase of Temporary Coordination Co~ittee meeting chaired by
_ Mr Tsuchimitsu has been established and there is a clamor for administrative
refonn from the entire financial sector. Mr Tsuchimitsu is enthusiastic. "If we
carry out administrative reform, we can obtain enough money for the budget in
1982 even without a tax hike." Prime Minister Suzuki has also made a firm vow
to carxy out administrative reform. The feeling is apreading among the people
that there really will not be a tax increase.
C: But it is totally impossible to avoid a tax increase.
B: That's ri~ht. Even if there is bold administrative reform and a cut in
personnel. The more people laid off, the more severance pay that must be paid
out. Rather than reducing spending, there will be a large temporary increase.
Even if we count up the overall profit and loss, it is clear that in the present
situation a tax increase will be necessary, even with extensive administrative
reform. If they rashly give the people the hope that administrative reform will
not increase taxes, then turn around and raise taxes after all, there will be a
fierce reaction.
- D: When that happens, it will be absurd to say that the green-card system must
be revised to give the rich a way to cut taxes.
B: That's why I think revision is impossible. On top of that, there is a need
to reduce income taxes. With all these things happening, the public is going to
be in an ugly mood starting this summer. The formulation of the 1982 budget may
be impossibly difficult.
COPYRIGHT: Shukan Toyokeizai 1981
Growth in Postal Savings
Tokyo TOYO KEIZAI in Japanese 2$ Mar 81 pp 28-32
[Text] I. Why Do Only Postal Savings Grow? Overall Advantages Recognized
In playground gossip sessions in apartment complexes, the women are saying
things like: "The interest on poatal savings is high, isn't it? My husband's
salary is paid directly to his bank account so he followed the teller's sugges-
tion and put part of it in a time deposit there. But maybe we should change to
the post office." Since last spring, this sort of conversation has been going
on throughout the r_ountry.
The ordinary white-collar worker and his wife living near the city have had little
to do with the post office. Especially to the person struggling to repay a hous-
ing loan, the idea of exceeding the "Maru Yu" (system for nontaxation of small
amounts of savings) limit in savings was something belonging to another world.
In su~ition, if one said that his financial dealings were with a post office,
the comeback would probably be: "You must live in a place with a lot of trees
and clean air." And most people would have said that it would be inconvenient
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not to be able to withdraw from a savings account using a card near one's place
of employment.
Hawever, following the green-card (card for people with small savings accounts)
commotion, interest in postal savings suddenly grew and reached fever proportions.
- Stuck in a situation where wages don't rise but prices do and real income is
reduced, people naturally have come increasingly to feel t~~at even a small amount
of savings should be deposited in the most advantageous place.
Even the average white-collar worker whc� doesn't have a lot of extra money feels
this way, so the "hidde?i rich," who are afraid their income will be grabbed in :he
- green-card transition after January 1984, have cast their hopes on postal savings
- as a tax haven.
Shock of Shift to Postal Savings
Financial institutions and even the Ministry of Finance, which forced the green-
card system into existence in order to secure revenue, were frightened by the
rapid growth of postal savings. The increase in postal savings (including interest
on principal) this month was a huge 1.408 trillion yen more than last year. It
was more than a medium-size earthquake. It was as if a new reg~.onal bank had been
established.
The growth in postal savings in the 3 months July through September was
- ~,999,600,000,000 yen, an increase of 64 percent over the same pariod last year.
The recent increase in individual savings account deposits was 5,436,200,000,000
yen (an 11 percent increase). So 55 percent of the increa~e was stolen away by
the post office. 'I'he remaining 2.4 trillion yen was divided among private finan-
cial institutions, but their growth rate was the wdrst ever. Except far the
credit unions which fought well and had only a 1-percent reduction, all others,
- including city banks, regional banks, mutual banks, trust banks, the fishermen's
cooperative, and labor union f~znds, suffered reductions in growth rate from 20
percent to more than 30 percent.
Resentment against postal savings was voiced in all financial institutions.
Attacks on paper were made and distributed by everyone involved under the leader-
ship of the National Federation of Bank Assr~ciations (chairman, Shun Yamada,
president of Mitsubishi Bank) with titlea like "Postal Savings Tyranny," "Postal
Savings--Breeding Ground for Tax Evasion Savings Accounts," and "Examples of
Illicit Solicitation." Also, a frontal attack was made in a debate over the
state of government and industry.
Dramatic Fall in Banks' Position
The seemingly hysterical enmity of banks toward postal savings is inevitable in
certain respects. That is because the sudden increase in postal savings is not a
new event dating only from the beginning of last year.
As can be seen in the graph presented below, the share of individual savings
accounts held by postal savings has grown year by year, from less than 20 percent
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in 1971 to 29 percent at the end o� Se~tember 1980. Compared to this, tre share
held by banks throughout Japan (city banks, regional banks, long-term trust
banks, etc.) has falle.n from 38 percent to 33 percent.
Fast growing postal savings; bank
(tril) savi~~~~~i1~a~~i~~or
~c~~ , -
. . - .r%Y
. .
_ Total: individual
- pos~s~~avings
~ ~
' c a~F9) .
70 -
~
.-~�-r
Nationwide banks
` ~/f~r ,
so
. ~
~o
.
~ ~
~a
~o -
~
:.o
Po al
g~ .
- ~o
~ 89/6 50 61 53~ . 64 66 .
~1971 1975 1976 f978 1979 1980
The overallJnolume of increase in post:~l savi.ngs is dramatic. Total postal
savings first reached the high plateau of 10 trillion yen in June 1972. It had
_ reached 1 trillion yen 22 years before, so the rate of increase during this period
was slow.
- However, after that things speeded up: 20 trillion yen was reached in only 3 years
(June 1975), 30 trillion yen in less tlian another 2 qears (March 1977). It took
only a little Iess than a year and a half to grow to 40 trillion yen (July 1978)
and about the same to reach 50 trillion yen (January 1981). This January, it
will break 60 trillion yen, a growth of 10 trillion yen in only 1 year.
It is easy to say 10 trillion yen, but there are only six banks which exceed this
- volume of funds--Daiichi Kangyo, Fu~i, Sumitomo, Sanwa, Mitsubishi, and Kogyo.
- And for the banks, this includes corporate accounts and securities. No private
institution c~ assemble 10 trillion yen only in savings accounts, and that in
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1 year. And when banks are forced to take on national bonds as an aid to the
government, one can understand why their hatred of postal savings is growing.
Preferential Treatment in Interest and Taxes
So then why has this avalanche of funds come into the postal savings system?
_ The first reason is advantages in interest. The regular =;;sta1 savings accour~t
has a better interest rate (4.08 percent annually) than an ordinary bank deposi.t
(2.75 percent annually). The rates for the 1-year time deposit and the fixed-
amount savings deposit are equal, at 7 percent. When we compare the chief
strength of the banks, the time deposit (7.25 percent for 2 years) to the fixe~i-
amount savings deposit of the post office (7.25 for 3 years or more), the banks
seem to have a favorable position.
However, the fixed-amount savings account, which has a 10-year limit, has
interest compounded semiannually and the interest rate grows progressively as the
period of deposit lengthens, up to 3 years. Then the high interest applies retro-
actively back to the time of the initial deposit. Just before the third reduction
in the prime rate, the annual yield on a 10-year fixed savings account was about
11 percent. In reality the bank cannot possibly offer a better product.
The second advantage is the preferential tax treatment. Up to 3 million yen are
- exempt from taxes in a postal savings account. The banks' "Maru Yu" deposit
(3 million yen limit) must be reported to the tax office and the amount exceeding
the limit is, of course, taxed.
There is a large difference between systematic exemption from taxation and
_ inclusion in the tax return. By using this system illegally, many people have
- made illicit deposits to evade taxation. For example, one person opened 70
accounts and deposited a total of 150 million yen in th2m. A former postmaster
deposited 170 million yen in 1,000 separate accounts.
- It is perhaps inevitable that the angry banks will make accusations. "More than
30 percent of the 60 trillion yen in postal savings accounts is there for tax
evasion. Postal savings solicits accounts by printing 'safe, profitable, secret,
no report necessary' on its business cards and by passing out handbills that
offer a 2,000-yen gift certificate for a 1-million yen deposit. It is totally
unfair."
Regional Affiliation Used as a Weapon
A third advantage is the strong foundation of postal savings. At the end of 1979,
there were 21,810 post offices, including very small offices in every area from
remote mountain valleys to the largest cities.
In comparison, there were only 12,414 bank branches, or if trust companies and
credit unions were included, just over 20,000--a big difference.
Also, in the post offices, there are about 10,000 "external affairs personnel"
who specialize in obtaining savings accounts. These salesmen have a system of
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strong lo~al ties so they can drop into people's homea and chat over tea. This
can function as a"vote-getting machine" when necessary at a moment's notice,
so politicians do not mistreat the "postal family."
- The postal savi_ngs system has grown rapidly both because of its overall fighting
- strength--interest and tax advantages and network of outlets--and its attractive-
ness as a tax haven. In these aspects, there is much truth to the bank's accusa-
ti~ns of "preferential treatment of postal savings." On the other hand, it cannot
be denied that there are other aspects, thoroughgo~tng service and understanding
of the people`s feelings, which the banks have neglpcted.
II. Secret Strategy To Become World's Largest Bank? Advance Into Lending by
the "Post Office Public Corpora~ion"
The postal bureaucrats always have these words on their banner: "Postal savings
is the savings institution for the people." According to a public re~.ations
pamphlet recently produced by the Postal Ministry, "The Housewife's Conscious-
ness of Financial Institutions," 88.4 percent of the persons questioned said that
the post office was "people-oriented." This was much higher than the figure of
71.2 percent for banks. And they congratulate themselves that the post office
has a much better reputation in other areas as well: "hard to use" (post office,
9.3 percent; banks, 12.6 percent), "self-centered" (post office, 4.6 percent;
banks, 11.4 percent), "different attitude at deposit time and withdrawal time"
(post office, 7 percent; banks, 48.1 percent).
Certainly, one gets angry at the unpleasantness of banks when one withdraws a
time deposit early or asks for a loan. If banks are to proclaim that "we place
importance on the individual," this is something that should be corrected right
away .
However, in asking whether the relationship with depositors is "people-oriented"
- or not, we should look at the matter on a different level. Postal savings is
_ oriented toward the people in its original intention of gathering small savings
accounts and heightening the consciousness to save. However, today, when exam-
ples of tax evasion appear continuousl;y and the postal savings system is using
- this as an attraction to spur growth, we cannot be convinced that they are
_ ope~ating out of concern for co~on people.
With this background, the green-card issue came up and the majority of the people
hoped for a correction of the unfair tax system. There must be many who feel the
difficulty of closing the gap between the public pretense of "the people's
financial institution" and the reality of "a refuge for the rich."
In ttie Diet, for example, there has been this response: We will take a scalpel
to illicit savings accounts." But if there is no direct response to the doubts
mentioned above, one becomes willing ta take the side of the banks in their call
for "equal footing." If the politicians who want to appear to be on the side of
the people assemble the power of over 250 Diet members and haphazardly spur on
the expansion of functions of the Postal Ministry, the suspicion arises that
interests unrelated to the people are involved.
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Because of this, it is necessary for the Ministry of Posts and Telecommunications
_ to open up and give more information to the public.
Postal Ministry Skilled in Negotiations
The actual stance of the Postal Ministry is an increasing ambition to expand its
jurisdiction.
In September, an individual pension system, a form of postal insurance, will b~~
put into effect over the protest of private life insurance companies. The
- annual limit of the pension will be 720,000 yen, much greater than the average
private figure of 300,000 yen.
'T'he Postal Ministry coldly put off the protests of other institutions. "They
have neglected not only individual pensions, but personal finance as well. This
advance of the post office should be a stimulus to them." They even say: "It
would be fine if the private sector started a new type of copipound interest
account to compete with our fixed-amount savings account with compound interest."
Even though some of these statements strike home, there are some things that
are not as simple as they appear on the surface. Looking at the previous pattern
of Postal Ministry action, we see that when they ask for something from the
private sector, they plant bombs for security.
- This came out in extreme form in the negotiations over individual pensions. In
the initial proposal, the amount of the pension was 2.4 million yen. This was
ultimately reduced to 720,000 yen, so it was a"big concession."
In the interpretation of the private sector,'"The original figure was ridiculously
- exorbitant, so this was no concession. It was a ma~or victory for the enemy."
This kind of apprehension can be felt in many other areas.
One example is the "silver savings account" idea, tax exemption for up to 10
million yen for savings of heads of households over 50 years of age. The declared
pretense is that this is for retirement planning in a society that is growing
older. However, it is highly probable that this will be used as an effective
means to make up for the shift to the green-card system.
In addition, there are plans to introduce new services starting in 1981 such as
combined deposits, automatic bill-paying, instantaneous telegraphic transfer,
etc. At the end of March, computer centers in Tokyo, Utsunomiya, Osaka, Nagoya,
and Hiroshima will be set up on line with 7,192 post offices. By the end of
1983, a network of 20,000 post offices throughout the country will be completed.
This on-line system will deliver a severe blow to banks, which have mainly dealt
with household finance transactions. In terms of bringing in funds, this will
be an even more effective weapon than the tax and interest advantages.
Why is the Ministry of Finance, which is supposed to be the guardian of the
private financial institutions, unable to make an effective counterattack to
the instincts of the post office toward proliferation?
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Sponsor of Second Budget
There are many reasons, but the main one is the financial power of the p~st
office. The Public Finance I,oan and Investment Program (1980), which is known as
the second budget, has a huge amount of funds, more than 18 trillion yen~ and 96
- percent of the base funds are Trust Fund Bureau funds. The largest sponsor is the
- Postal Ministry, which puts out 9.592 trillion yen from postal savings and postal
insurance combined. This "debt" carries great significance.
The earnest desire of the post office is to gain autonomous control in investing
and using these funds. The Ministry of Finance, on the other hand, is determined
- not to give the right to the Postal Ministry to use the funds placed in the Trust
Fund Bureau, which is tied to the Financial Bureau. As long as the post office
does not enter this sacred ground, the Ministry of Finance will continue to make
concessions to their belligerent moves.
With respect to the rapid growth of postal savings, theories abound concerning
uneven distribution of funds in favor of government enterprises and reevaluation
of government enterprises. The private sector claims that uneven distribution of
funds toward the government sector prevents the smooth flow of money to the
private sector, especially the manufac~turing industries, and destroys private
sector vitality. This view is correct, with no room for argument.
Right now, the Postal Ministry is taking this attack lightly. But Postal Ministry
bureaucrats are known for their persistence, a~d they are thinking: "If the
private supply of funds dries up, then we can make loans." They are waiting for
a chance to provide assistance.
When that time comes, it will be the perfect chance to advance the concept they
have long had on the back burner, a"post office public corporaticn." The ulti-
mate goal of the Postal Ministry people is to change from half a"bank," which
has only savings accounts ar.d can put only part of its funds into ioans, into the
_ world's largest bank, in both function and name, with comprehensive activities
of raising funds and employing them.
III. Unification of Interest for Whom? Postal Savings Discussion Group--Many
- Problems Amid High Hopes
The postal savings discussion group was created at the end of last year in a
trade off for realization of the indiv:Ldual pension plan. It will be a forum
for testing the great plans of the Postal Ministry. It is a personal advisory
- body for the prime minister and its fo~rn?al name is the "Discussion Group on the
Status of Government Enterprises in the Field of Finance" (chairman, Hiromi
Arisawa, professor emeritus of Tokyo Utziversity). As the name indicates, it
deals with concentration of funds in guvernment enterprises, the function of
government enterprises, and unification of interest, etc. The five members of the
group are all influential people.
The current focus is on the problem of interest unification. At present, there
are two levels--interest on savings accounts is determined by the Postal Services
Advisory Council and interest on bank deposits is determined by the Interest
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Adjustment Council. The resistance of the post office to reducing interest is
particularly strong, and there are many difficulties in regulating interest.
Even the Bank of Japan, which is the supervisor of monetary policy, has announced:
"The shift of funds to postal savings has narrowed the range of monetary policy
and weakened mobility," beginning to wave a flag attacking the post office.
Then the National Bank Association organized a group of sc,~olars known as the
"Public and Private Sector Study Group" and commissioned it to thoroughly
reexamine the postal savings problem.
In all these moves, the aim is to use interest unification as a lever to put
public and private institutions on an "equal footing" and secure a more ideal
condition in the government enterprises and better monetary policy from the
point of view of the people's economic situation in a period of low growth.
PR Battle Planned for August
_ The Ministry of Posts and Telecommunications considers that if othErs enter the
sacred precinct of determining interest on postal savings, not only will postal
savings stop growing rapidly but there is a danger that the overall balance will
drop. Therefore, they have quickly established the Special Committee for Funda-
mental Post Office Problems in the Postal Services Advisory Council (chairman,
Toshio Tsuchimitsu) and moved to counterattack in the battle of words. The LDP
Communications Committee also organized a subco~ittee which exhibits strong
characteristics of a cheering section for the post office.
The report from the postal savings discussion group is scheduled for submission
in the middle of August. However, the committees of all parties will present
reports clarifying their views in May and June and will direct public relations
efforts toward the members of the postal savings discussion group.
The members of the postal savings discussion group are complaining: "Between
the screams of the players on both teauLS and the shouts from the stands, the
commotion is unbearable."
In the Diet, questions like the follow:ing are flying about: "Won't unification
of interest work against interest liberalization? The problem of interest unifi-
cation has been debated for many years. It is disgraceful to ask for a decision
in August." (Akira Nakano, Komeiti Diet member)
- The argument that unification of interest will go against interest liberaliza-
tion is also the view of the Postal Ministry. However, this argument is based
on a misunderstanding. Liberalization has the aim of reflecting the market
mechanism. The existence of two artificial interest systems is even more
antithetical to liberalization.
Since vested interests are clashing openly over this issue, it is not certain
that a clear canclusion. can be reached in August. And there are many other
~problems of differences in thinking. The Bank of Japan and the Miniatry of
Finance are fighting together on the side of uniform interest, but once it is
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adopted, the problems will remain of which one is to have leadership and what
sort of monetary policy to adopt.
The postal savings problem has been likened to the Hundred Years War. The
vested interests of the parties involved have thick walls and deep foundations.
The postal savings discussion group has been handed an effective scalpel by a
thousand-in-one chance. Attention is focused on whether it can wield it with
- the skill of a great surgeon in response to the great hopes which are placed on
the group.
COPYRIGHT: Shukan Toyokeizai 1981
Risk of 'Financial Socialization'
Tokyo TOYO KEIZAI in .Tapanese 28 Mar 81 pp 33-35
[Text] I. Proliferation of "Government Officials Labor Federa'tion"
The postal savings problem has been debated from many angles. These include the
problem of an unfair tax system, problems in new products and services, and prob-
lems of determining interest rates. Each of Chese should be examined carefully,
and honest evalua.tion should be given its due. However, this author believes
that there is great danger of sticking exclusively to this debate while the
actual problem continues to grow now. This is because there are many respects
in which the overall patterns and internal nature of the problems cannot be
grasped in a partial and technical debate.
From this point of view, the first thing that should be observed is that the
expansion of postal savings is not a unique phenomenon that occurred in isola-
tion. The postal savings problem occurred together with the expansion of public
sector intervention in the private sector in financial affairs. Expanded inter-
vention has occurred, first, by quantitative and qualitative expansion of
government financial institutions, and second, by increased public intervention
in private financial institutions. The former aspect is seen, in the area of
fund procureiaent, in the expansion of postal insurance and pension funds as well
as postal savings, and in the area of fund employment, in the expansion of the
- public finance loan and investment program. The latter includes the strengthen-
ing of regulations and guidance based ~on the pretext of the "public nature" and
"social responsibility" of banks.
This expansion of intervention, or in other words, financial socializationn is
advancing in the form of competition with or pressure on private financial
institutions. And in the background, I believe, is self-proliferation of a
"government officials labor federation" including not only the employees of
government financial institutions, but the politicians of both governing and
opposition parties, who use them as an effective base of support.
This socialization of finance is not just a life-or-death issue for the private
financial institutions. It is a problem involving selection of the overall
economic system. If financial socialiaation continues to spread, financial
restrictions will gradually cause private industry to lose its vitality and
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resilience and force it closer to the public corporations of the big boss, the
Japanese Government. Finances are being used as a device to socialize the
entire economic system. This is the path of "financial socialism."
In spite of this, however, financial socialism is ma.king gradual progress as a
fait accompli without fundamental debates, judoments, or decisions ever clearly
takin g place. This means that the special interests of the "government offic~.a;
labor federation" are proliferating without being checke.. ~~rom the point of view
of the entire economy. In other words, special interests have taken precedenc�~
over the pursuit of the general interest. This is wherc the greatest problem
lies.
The phenomenon of special interests taking precedence over the general interest
is not at all peculiar. It is the most common danger that a democratic society
is prone to and something which has been emphatically pointed out by scholars
in recent years.l The gradual socialization of finance did not result hap-
hazardly from a special or temporary state of affairs. It is the appearance of
a flaw in democratic society itself. Therefore, it cannot possibly be stopped
by temporizing measures or arguments.
II. Creeping "Financial Socialism" [Author: Iwao Kuroda, assistant professor,
Tsukuba University]
The socialization of finance has a decisive influence on the state of macro-
stabilization policies. As the government financial institutions expand,
monetary policy which ignores the direction of socialized sectors will meet
with more and more difficulty. This means that a central body to control the
socialized areas will become necessary in addition to the central bank, the
organ that executes macrostabilization measures. Recently, "unification of
interest policy" is being loudly demanded. On the surface, this appears to be
a jurisdictional dispute between the Ministry of Finance and the Postal Ministry.
But we must not forget that such a~urisdictional dispute has become a big prob-
lem because Japanese finance has become socialized to the point where the central
controlling organ that executes the mar_rostabilization policies mentioned above
, has to be reinforced.
If the socialization of finance continues to expand, it will become impossible to
maintain the stability of the ma.croeco~zomy through the monetary policy of the
Bank of Japan, and the government will have to take its place as a regulating
agency. This is because the monetary policy of a central bank is carried out
by some form of action on the activities of private financial institutions.
However, as the weight of private financial institutions is decreased and their
operating base is weakened through the socialization of finance, the measures
which smoothly regulate the overall economy through these channels are no longer
effective.
Especially if the self-propagating government financial institutions combine the
regulatory organs and come to have great influence on them, there is little hope
M. Friedman, "Freedom of Choice," Ch 10.
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that regulation will be determined rationally with a view to overall welfare.
This is because when the overall welfare is balanced against the special welfare
of the g~vernment financial institutions, the latter will tend to take priority.
A fundamental debate going beyond technical considerations is necessary to deal
with this problem.
These days, public opinion generally comes down hard against expansion of the
" public sector. The kind of fundamental debate indicated above is included in
this. The socialist society which was previously attractive to intellectuals
has recently become a negative symbol. In the United States and Europe, as
indicated in the new Reagan policies, the desire to reduce the size of the
_ public sector is growing stronger among the common people as well as among
scholars. The same kind of movement is beginning in Japan when financial
reconstruction is being planned chiefly by means of a tax increase.
III. Intellectual Climate Allowed Socialization
However, these voices are not being directed toward the socialization of finance.
This is due to the general level of consciousness of finance and the intellec-
tual climate of the academic disciplines which influences it strongly.
The first thing that should be pointed out is that a fixed idea still exists
that Japan's pY'ivate f,.nancial institutions work irrationally in line with
unique Japanese banking, and business practices and unique Japanese regulations.
As long as this premise is accepted, no matter how undesirable the recent
socialization of finance p;~enomena may be, the influence of socialization
itself is underrated as just a switch from one irrational system to another.
In reality, there is very little evidence for this theory of uniqueness.* On
the basis of a uniqueness theory with little supporting evidence, the effect
of financial socialization is underrated and a force occurs which is overlooked.
- The second point that should be made is that scholars and economis~s have not
actively attributed significance to the existence of private financial institu-
tions. The image of banks as a great evil, coming from the monetary capital
theory of Marxist economics, is still strong.
Modern economists, on the other hand, see financial institutions as mediating
in saving and investment and supplying currency. They do not offer a positive
explanation of why this musti de done by private financial institutions. For
_ example, private financial institutions have always competed on the basis of
investigative and organizing functions, and this has brought about vitality and
reailience in the public sector. These functions are never mentioned in conven-
tional textbook theory. A one-sided monetary theory naturally gives li~tle
importance to the private financial system. In fact, it contributes to mis-
_ understanding.
*The author, "Reconsideration of Japanese Irbnetary Policy," Economic Studies,
- Hitotsubashi University, January 1981.
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- The third point is that modern economists especially are severely critical of
private monopoly but tend to be tolerant of public monopoly. (This is not
limited to finance.)
The Anti-Monopoly Law which prohibits private monopoly is a development from
the common law. In other words, under the principle of the rule of law, the
giant public sector is to be regulated first and then the same thinking is to 1~.~
applied to private monopolistic organizations. However, ~.o~crn Japanese econo-
mists, without being aware of or sufficiently examining this consistent concept,
have been oddly diligent in demonstrating the economic hsrm caused by private
monopoly only.
Moreover, the theory that the public sector should always be free and able to
maneuver as it sees fit (the theory named after the Keynsian, Harvey Road) was
accepted until recently as only natural. When this problem is added to the
first two, we see that financial socialization is not just underrated in its
harmful aspects. It is given a positive evaluation as a matter of course.
IV. Active Effort Toward a~ndamental Debate
As I have stated, the predominance of special interests over the general interest
is a danger to which a democratic society is prone. In order to escape this, it
is essential that a public opinion be formed that is clearly aware of the dis-
tinctions and contradictions between special interests and the general interest.
And for this purpose, it is necessary that there be a change in general con-
sciousness and in the intellectual climate.
Tliere are many reasons why this is not taking place, but I believe the first
_ problem is that those who stand to be directly affected by financial socializa-
tion have basic misunderstandings or are being naive about the points made here.
Active effort is necessary to obtain the theoretical equipment to reform con-
sciousness and the intellectual climate examined in section III and to appeal
to public opinion to recognize the existence of the basic problems discussed in
sections I and II.
Of course, theoretical equipment and appeals will not solve everything. If those
involved are to proclaim the advantages of financial socialization, an effort
will be required, along with explaining their own actions, to make necessary
changes and clear up areas that cause misunderstanding in addition to dealing
with immediate problems.
The recent movement of gradual financial socialization was originally triggered
by rapidly rising prices and the accompanying increase in criticism of banks.
The wounds remaining from the wild price hikes are long and deep. The con-
tinued maintenance of macrostabilization policies is a necessary condition for
rational and clear discussion of the basic problems involved in financial
socialization.
As I have stated above, the most important thing to be done in relation to the
postal savings problem right now is to have a wider debate among the citizenry
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on the fundamental problem of financial socialization. For this purpose, it is
necessary to take care to avoid words or actions which present an incorrect
image to those who will be directly harmed by socialization and to make active
efforts and take measures to dispel misunderstandin g.
We should remember that without such an effori., repeated partial or technical
arguments and responses will only aid the process of gradual financial
socialization.
COPYRIGHT: Shukan Toyokeizai 1981
Reexamination of Green-Card System
Tokyo TOYO KEIZAI in Japanese 28 Mar 81 pp 36-37
[Text] The green-card (small savings account card) system is to be instituted
in January 1984. Arguments opposing it are springing up fast. The main reason
for opposition is that if this system is pushed through, hidden funds and money
which has evaded strengthening of the tax system will flee overseas or go to
precious metals or paintings. It is held that this would not only have a big
effect on Japanese financial markets, but also lead to an inflationary mentality i
of exchanging money for goods. The opposition movements are coming from small i
businesses and industry and from politicians.
Observing these movements, most citizens are likely to be angry. This is
because they see right away that the reason for the protest is that funds hidden
to evade taxes will be exposed and illicit political contributions will be harder
to hide. Therefore, it is only natural that the average wage earner, who has
no illicit contributions to hide and has his income tax collected at the source,
strongly feels that this system should be resolutely carried out and the wrong-
doers should be strictly controlled.
As of the present, Prime Minister Suzuki and other government officials have
not changed their policy of carrying out the initial plan for the green-card
system based on the pretext of correcting unfair taxation practices.
We do no t believe there is any necessity to protect the hiding places of the
rich and the politicians and we do not think there is any reason tc listen to
their pleas. But we would like to poialt out that the issue is too complex to be
;zolved simply by emotional arguments. We believe this system is problematic
because of the very small positive effect to be gained from the tremendous
energy output and friction that will go along with instituting the green-card
system. Since this problem is very closely related to the life of the nation,
it deserves rational study and we thinlc that it is now necessary to reconsider
the green-card system.
Positive Effects
First, what are the advantages to be derived from the green-card system? It goes
without saying that its major purpose is to eli~?inate preferential treatment of
the rich in the tax system. Heretofore, when the rich selected divided taxation
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at source for their interesr and dividend income, the tax rate was 35 percent
and it was not ner,essary to pay any regional taxes. If there is a shift to
compreh~nsive taxation, a high tax rate will be applied and regional taxes will
have to be paid.
On 11 March in the House of Councillors Budget Committee, Finance Minister
Watanabe reported the expected increase in tax revenues following introduction
of the green-card system. Based on the tax revenues of 1"IIl, the increase in
income tax revenue will be 70-80 billion yen and the accompanying increase in
local residence tax revenue will be 120-130 billion yen, for a total of 190-200
billion yen. The expenses for instituting the system, on the other hand, will
be approximately 2 billion yen annually, so the actual increase in government
revenue will be 170-180 billion yen.
This amount of money will be obtained as compensation for a tremendous expendi-
ture of energy. Leaving aside for the moment the question of whether it is
really enough, we should look next at the disadvantages of introducing the green-
card system.
Negative Effects
The first problem is that it is very doubtful whether the tax revenues will
increase as planned. The rich are worried about exposure of the previous hiding
places for their income more than they are worried about a small increase in the
- tax on their interest and dividend income. Therefore, the money presently in
these hiding places will flee overseas or move to ordinary bank deposits not
covered by the green-card system. As a result, the amount of money that was
previously taxed at 35 percent will decrease, and because of this reduction in
deposits subject to taxation, the increase in tax revenues may be much sma.ller
than planned.
Second, even if this system is instituted, the feeling that the tax system is
unfair will not disappear. This is because the greatest cause of a feeling of
unfairness is the 9-6-4 difference in income supplement rate between salary
income, business income, and agricultural income. Even if the tax on interest
is manipulated to some extent, the feeling that taxation is unfair will not
disappear as long as this basic inequality persists.
Third, even if there is sufficient consolidation of bank deposits and savings
accounts under one name with the green�-card system, it will be impossible to
check discount bonds and dividends suf.ficiently, and this will lead inevitably
to new sources of inequality reJ_ated tu financial assets.
Fourth, when this system is introduced, fierce competition will develop among
the banks to get "Maru Yu" accounts filled. It will probably be worse than the
competition in newspaper sales. The well-intentioned average depositor will be
drawn into this whirlpool of excessive competition.
Fifth, there are 300,000 people who come under today's 35 percent rate for
divided taxation at source. In order Lo prevent ill.icit use of the "Maru Yu"
system by this small group of people, it will be necessary for the other 100
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million people to get a certificate of residence and go out of their way to
present a card when making a time deposit. This involves tremendous inconven-
ience and expenditure of energy. And the only result for the average depositor
will be this inconvenience with no increase in actual benefits.
T`he sixth problem is the effect on the national economy. Last year a great deal
of money shifted to postal savings because of the green-card system, and this
caused a lot of harm in the financial market. If a large amount of money goes
overseas in the near future, it will lead to stringency in the fina.ncial markets.
If there is a big move to change to bank deposits, banks will have reduced
financing costs but problems in securing stable long-term funds.
Urgznt Reconsideration Needed
While there ma}� be a need to correct an unequal tax system for the public good,
the problems listed here are likely to occur. Is it really necessary to pay such
a high price to obtain a mere 100 billion yen in extra tax revenues? Finance
Minister Watanabe stated at a press conference following the cabinet meeting of
13 March that there would be a great burden on people c~*ith high incomes resulting
from the introduction of this system. He said he would like to take steps to
alleviate this because compared to other countries such as Great Britain, we have
an extremely high tax rate on high incomes.
There is nothing to be gained. The effect of increased tax revenues following
introduction of the green-card system will be further diminished by a reduction
in the income tax rate.
It is essential that the green-card system be reconsidered soon, before
immeasurable adverse effects are brought about in the financial markets~ We
would like to discuss the specific measures to be taken at another opportunity.
COPYRIGHT: Shukan Toyokeizai 1981
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CSO: 8129/0947
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SC"iENCE AND TECHNOLOGY
GDR CHAIRMAN ASKS JAPANESE COOPERATION IN ADVANCED TECHNOLOGY
Tokyo NIHON KEIZAI SHIMBUN in Japanese 12 May 81 p 1
[Article by special correspondent Murase in East Berlin: "GDR Chairman Met With
Japanese Reporters Before His Visit to Japan; Cooperation in Advanced Technology"]
[Excerpts] Erich Honecker, chairman of the East German Council of State and
secretary general of the Socialist Unity Party (the Communist Party), who will
pay a formal visit to Japan on the 26th for 1 week, met with the Japanese press
group on the llth in East Berlin. At the interview, he stated his hopes for his
first visit to Japan.
- He expressed his satisfaction with the fact that the economic cooperation between
East Germany and Japan is steadily progressing. At the same t_~ae, he stated that
"he would like to rapidly introduce microcomputers and robots because East Germany
suffers from a s~rious labor shortage." He strongly suggested that East Germany
needs Japan's cooperation in this respect.
With regard to the relationship with Japan, he greatly appreciates that the trade
volume between the two countries doubled during the past 4 years between 1977 and
1980, and stressed that "it is possibl.e to maintain peaceful coexistence and
economic cooperation even between countries with different political systems."
He showed his satisfaction with the fact that Jap~anese enterprises have partici-
pated in East Germany's ma~or projects and the two countries have increased their
cooperation in the Third World's market. He showed a positive attitude toward
introducing Japanese advanced technology into East Germany. He pointed out that
an improvement in productivity is especially indispensable for East Germany's
economic development, and asked for Ja.pan's cooperation in the fields of micro-
, computers and robots.
Also, Chairman Honecker disclosed that East Germany had an annual economic growth
of 5 percent in the last five-year plan which ended in 1980. He stressed that
"East Germany plans to achieve an annual 5.5-6 percent of economic growth in the
next five-year plan."
COPYRIGHT: Nihon Keizai Shimbunsha 1981
CSO: 4105/164
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SCIENCE AND TECHNOLOGY
TITANIUM PRODUCTION IN JAPAN RAPIDLY INCREHSING
Tokyo NIKKAN KOGYO SHIMBUN in Japanese 16 Mar 81 p 7
[Article by Masao Aoyama, the journal reporter; an annual 50,000 ton production;
Osaka Titanium Co., Ltd. has an aggressive plan; new demand will still cantinue"]
[Text] Osaka Titanium Co., Ltd. (headed by Yasubumi Doi) announced its intention
to "produce 50,000 tons of titanium per year," in "responce" to the military build-
up by the Reagan administration.
A 50,000 ton per year production is about the level of production in the Soviet
- Union, and is more than sufficient to satisfy the demand in the free world.
- Osaka Titanium has the ambition to satisfy the free world's demand alone. It
is reported that Toho Titanium Co., Ltd., the second largest titanium producer
in Japan, is examining the possibility of a 50% production increase. In addition,
Mitsubishi Metal Corp. backed by the Mitsubishi Group is studying whether to begin
titanium production. Thus, activities in the titanium production industry are
very lively. Despite the dull activita.es in both the ferrous and non-ferrous
metal industries, only the titanium mar.ket is energetic. The reasons why the
Japanese titanium producers are so aggr.essive in production are examined here.
Osaka Titanium announced on 3 March that it will invest 12 billion yen to con--
struct a plant with a 12,000-ton per year capacity. The plant is expected to have
a capacity of 5,000 tons by December 1981, and another 7,000 tons some time later.
Osaka Titanium will be the world's largest titanium producer, if the new plant is
completed, and will produce a total of 27,000 tons per year. President Doi
"declared" also that "the company is establishing a system so that it will be able
to produce up to SO,OOC tons in future.," The reason behind this is that the
company is expecting the rapid increase in the demand for titanium due to the
increase in production of commercial aircraft, nuclear generation facilities and
= medical equipment, and is planning to build the world's largest titanium export
- base through.reducing the production cost by means of the most sophisticated plant
and equipment. While it is stepping up the production of titanium sponge, Osaka
- Titanium is constructing an ingot smelting furnace. When completed, it will
produce 200 tons of ingots per month. Thus, the company is extremely aggressive
in establishing a comprehensive production system.
Titanium is heavier than aluminium, weighs half that of copper or nickel and is
twice as strong as iron. Besides, it has such superior characteristics as high
heat and corrosion resistance. The titanium market, however, is always violently
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affected by the business conditions. ~~cao thirds of the titanium demand derives
rrom aircraft production. The volume c~f military aircraft production especially
affects the titanium demand. Only a fE~w years ago, all titanium producers suffered
severe financial difficulties because af the reduction in military expenditures
_ in the U.S. and Europe and reduced demand for commercial aircraft production due
to a recession in the airline industry. Adding to their difficulties, the Soviets
dumped titanium at a low price on world market and the titanium producers were
_ hit with large increases in electricity charges. All producers, including Osaka
Titanium and Toho Titanium, together with TMC and RMI of the U.S. fell into the
bottom of a recession. Also, because titanium sheet makers, such as Kobe Steel,
Ltd. and Sumitomo Metal Industries, Ltd., had heavily invested in their plants
and equipment prior to this period, the financial damage was the worst of any
- recession that they had ever experienc:ed.
The situation has completely changed since 1978. The Soviet Union, the world's
largest titanium supplier, which gave great trouble to the Japanese titanium
industry with its low sales price tactics suddenly stopped the export of titanium
to the free world. It is said that the Soviets are making nuclear submarines which
are totally made of titanium and sail at 40 knots at 3,000 feet in depth, or that
they are developing a new type titanium tank ta replace the T-72 tank, but the
true reasons are not known. The Soviets involved in the titanium production gave
"no comment" to any question directed roward them. Naturally, purchase orders are
coming to Japan more frequently and the price is rising from 2-3 dollars to 7.5-8
dollars per pound (3 million yen per ton). Kobe Steel, which is the top processor
- of titanium sheet is receiving purchase orders from practically every aircraft
manufacturer in the Unit.ed States and i.n Europe, including Airbus, Rolls-Royce,
and Pratt and Whitney. Such is the tit-anium fever phenomenon. At this time last
year, many people were saying in spite of the titanium boom that "we never know
- how long this boom would last," or "thE: Soviet Union may start dumping again soon
enough." At that time, e~~~.n Vice Pres3_dent Minkler of TMC, who has a 30-year
experience in the titanium business, took a pessimistic attitude toward investment
in plant and equipment, saying that "I cannot believe that good business activity
_ will last for long." Even now, howeve~-, the high price and high demand for titanium
are continuing. Regardless of the pessimism on the part of the U.S. and European
titanium producers, the two Japanese pl-oducers have each aggressively expanded
their production by 100%--to 15,000 tons at Osaka Titanium, and to 12,000 tons at
Toho Titanium. Their tactics have cert:ainly proven successfully.
The factor which gives impetus to this boom is the fact that President Reagan has
revived the idea of building new milit~iry aircraft and has been working on Japan
_ and NATO countries to expand their defense forces. The F-15J, the FX, which is
made by McDonnel-Douglas is 30% titanium. It is said that the aircraft which is
to replace the B-52 wi11 use more titanium than the B1 (120 tons for the fuselage,
10 tons for the engine) which was considered as the candidate for the B-52 replace-
ment during the Carter administration. Both aircraft are Iike a chunk of titanium.
Additionally, the production of Boeing 747's and 767's and other commercial air-
craft will inflate the demand even more. It is natural that the producers have
become all excited. Osaka Titanium (the Sumitomo Group) and Toho Titanium (the
Nippon Mining Co., and the Mit~ui Group), which are the forerunners in the field,
are planning on expansion, and Mitsubishi Metal, which has talked about beginning
titamiun production for some time is studying the possibility of joining the
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business. Mitsubishi Metal enthusiastically stated that "we will complete our
study within this year on whether we wj.ll join them or not. However, it is said
that the "50,000 ton" remark made by O~:aka Titanium ia meant to be a diversionary
tactic against Mitsubishi Metal. In nriy case, the titanium industry sgreea that
as far as the international tenaion centering around the U.S. and the Soviet Union
continues, the demand for titanium will continue to be high. Titanium demand by
commercial aircraft, sea water desalination facilities and nuclear reactors in
addition to military aircraft is high, however, if the price goes down, there is
~ a possibility for development of new products. There is a voice which counsels
those who are ecstatic about the titanium boom, that "we must do our best in cul-
tivating new fields and developing new technologies at the very time when we can
afford it."
COPYRIGHT: Nikkan Kogyo Shimbunsha 1981
CSO: 4105/163
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SCIENCE AND TErHNOLOGY
~
i
MITSUBISHI METAL CORPORATION TO START YRODUCING TITANIUM WITHIN 3 YEARS
Tokyo MAINICHI SHIMBUN in Japanese 24 Apr 81 p 7
[Article: Mitsubishi Metal Corp. to produce titanium; 500 tons per month, within
3 years]
[Text) Mitsubishi Metal Corp. (headed by Yoshihiro Inai) announced on 23 April
that the company will start producing titanium within 3 years. The company decided
to venture into the Titanium producing field because titanium demand is expected
- to grow continuously. The company expects high demand in the fields of weaponry,
aircraft, nuclear generation and desalination facilities. lhere are some members
of the Mitsubishi Group such as Mitsubishi Heavy Industries and Mitsubishi Electric
Corp., which strongly demanded the production of titanium within the enterprise.
Both the Mitsui and Sumitomo groups already include titanium producers among their
members, and with the participation of the Mitsubishi group all three of the old
financial combines will be participating in the titanium industry.
Increased Demand for Titanium Because af the Production of Weapons and Aircraft
According to Mitsubishi Metal, it plann to use ilmenite ore, which contains only
50% titanium but is cheap, instead of Iutile ore, which contains 90% titanium but
is expensive. The company will refine the ore in two steps: refining ilmenite
into artificial lutile ore and then int:o titanium. Currently, Mitsubishi Metal
is negotiating with DuPont of the U.S, for technology transfer, but it also has
good prospect for producing titanium with its own technology.
Also, Mitsubishi Metal plans to diversify the means of ore acquisition through
securing titanium tetrachloride from chemical plants which belong to the Mitsubishi
Group, including Mitsubishi Chemical Iridustries Ltd., which produces it as a by-
product. Mitsubishi Metal also plans to manufacture titanium plate and pipe at
its Okegawa factory. It plans to start titanium production "within 3 years"
(President Inai), and the production scale is scheduled to be 500 tons per month.
Titanium has the following characteristics: 1) it is slightly heavier than
aluminium but weighs half as much as copper or nickel, 2) it is twice as strong
as iron, and 3) it has high heat and corrosion resistance. Therefore, the demand
- for titanium has rapidly increased during the last few years mainly in the air-
craft, nuclear submarine, thermal and nuclear power generation and sea water
desa]ination industries. Consequently, price has j�umped to about 3 million yen
per ton.
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In Japan, there are two titanium produc.ers, Osaka Titanium (the Sumitomo Group,
with a 15,000 ton ann~~al production capacity), and Toho Titanium (Nippon Mining
Co., Ltd. and the Mitsui Group, also wi.th a 15,000 ton annual production capacity).
Thus, the domestic production capacity totals 30,000 tons. The Japanese annual
production capacity surpasses that of the U.S., which is now at 22,000 tons.
Japan is the world's second largest producer, following the Soviet Union, which
is said to produce 35,000 tons per year. Because of the rapid increase in demand,
Osaka Titanium also plans to increase its production by 12,000 tons per year. If
Mitsubishi Metal participates in the business, Japan will surpass the Soviet Union
and will become the world's largest producer of titanium in a few years.
COPYRIGHT: Mainichi Shimbunsha 1981
CSO: 4105/162
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SCIENCE AND TECHNOLOGY
I STUDY OF LIQUEFIED HYDROGEN FUEL FOR H-1 ROCKET PR~DMOTED
Tokyo NIKKEI BUSINESS in Japanese 12 Jan 81 pp 76-78
~ [Interview with Itsu Hiraki, director of the National Space Develo~ment Agency, by
Koichi Shiraishi, assistant manager of NIKKEI BUSINESS; date and place not given]
~ [Text] [Question] In the 1960's, Japan began development of the H-1 rocket
launch program on its own. In what form did development progress before the H-1
rocket?
i
I [Answer] Even in wartime, rocket research was carried out, but the space age
i curtain opened for Japan in 1955 with the launch test of the Pencil rocket.
~ This was performed by the Tokyo University Institute of Industrial Science, but
research was taken over by the Tokyo University Spaceship Research Institute,
which wae established soon after. ,
i
' Meanwhile, the Science and Technology Agency's National Space Development Center
~ was performing launch tests at Nii~ima (Izu, Shichishima), but there was a resi-
~ dents' opposition movement and the launch center was transferred to T~negashima.
The centPr was reshuffled in 1969 and became the "Space Development Pro3ect
Group," and the National University people performed general research there.
Eventually, centered on the two stxuctures, the Space Development Pro3ect Group
and the Spaceship Research Institute, Japanese rocket experiments progressed.
Successful Beginning of Stationary Satellites With N-1 Type
[Question] It is said that Japan had launched rockets up to then. What were
those?
[Answer] At the Spaceship Research Institute, after the Pencil rockets, they
were enlarged as the Kappa, Lambda, Mu series, but at the National Space Develop-
ment Center, the idea of this line was further advanced, and as regards the
present N rockets, the "N project" was set up to provide utility satellites.
However, as rapid production of utility satellites was difficult, it was con-
verted to the "Q Project" when it was on the brink of launching utility [satel-
lites]. At that time, ionosphere observation satellites of 85 kg, which were
- ~ the extent of the launch ability, were being tracked.
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However, user needs steadily escalated in the direction of enlarging the satel-
- lites, and this degree could not possibly be reached. Hence the Q Pro~ect was
stopped halfway, and a new N Project began.
[QuestionJ To what extent did U.S. technology enter into the N Project?
[Answer] In the United States, rockets of the possible extent of the N Project
are called "Delta." These are converted as first-stage rockets of the
intermediate-range missile "Thor," with the second and third stages being
added. Lip to the present time, 153 Delta rockets have been launched at NASA
alone; this was introduced to Japan because it was considered suitable. The
first and third stages have been almost completely retained; the second stage
is an improved, deve,oped version of the second stage of the Japanese Q Project.
For its performance, at first the power to lift a 100 kg satellite into stationary
orbit was pursued. As the Q project had the power to lif t an 85 kg satellite into
a low-level orbit, when this was changed to a stationary orbit there was not the
launch power for 20 kg, and we were talking of a great advance.
The outcome of this was entirely that the so-called "kick" of the N-1 stage was
successful in launching the satel]ite; this was followed by the "second kick."
In February 1977 the "second kick" was launched, becoming the first Japanese
_ stationary satellite. Finally the N-I type rocket reached a stationary satellite
launch power of 130 kg.
European "Aryan" Cheap; Opposition to America
[Ques tion] However, one could say the situation was that this degree of launch
power did not meet the users' needs, couldn't one? From the users' side, what
actual weight of satellite do they say they want to launch?
[Answer] Satellite capability advances, and waight is also advanced, but for
- esanm le in the "e�~^fi^~.~^_*" weather satellitP, because the precision camera (a
visible infrared scanning radiometer) and so on pile up weight, it has reached
350 kg. Because this is unreasonable for an N rocket, a launch in the United
States was arranged. Launches in the United States were also arranged for co~-
munications and broadcast satellites, known as "Sakura" and "Yuri."
"Sunflower" was launched in July 1977, with an assumed lifetime of 3 years. In
fact, this lifetime has been exceeded. Next, it is essential to improve the N-I
so that Japan will have the power to launch its "No 2 Stationary Satellite."
- Concerning the method of this improvement, it has been argued both that "it
would be a good thing to introduce the improved type of U.S. Delta rocket as it
is," and that "the United States would not export the latest technology to other
countries. As this is indecisive, the outcome was that a"black box" form of
hardware, the contents not being disclosed, was imported from the United States.
As a result, a launch capability test is to be performed with the N-II in
February, and if this is a success, a program for launching the "No 2 stationary
satellite" will be advanced.
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[Question] In the N-II type, what proportion of independent, Japanese technology
is there, as you mentioned, and what proportion is contained in the black box?
[Answe r] The term "domestically produced" is used in variaus ways and is diffi-
cult to define, but we are thinking of a large amount of money. This has
increased from the introduction of the N-I type to the N-II type. I would say
that in the former, about 60 percent was imported.
[QuestionJ That means more than half is U.S. technology, doesn�t it? In the
European Space Agency (ESA) there is the "Aryan" rocket. H,ow do its capabilitie~
compare with the N-II?
[Answer] Let us briefly touch on the present state of world rocket technology.
First, in the ihiited States the technology has been established, beginning with
applications o� missile technology, for launching the huge Saturn S and other
rockets utilized in the Apollo project, or the Titan, Atlas, Centaur, and other
types that launched the Voyager, Pioneer, and other planetary probe craft.
As for Eu~ope, in England there was the so-called Black Arraw satellite launch
project, which failed and was discontinued. In the European Community, attempts
were made by the European rocket development organization ELDO to launch satel-
lites. Af ter this, the European Space Research Organization (ESRO) and ELDO
were merged to form the present ESA, and the Aryan being developed there can in
fact rival the United States.
Like Japan, Europe has recourse to the United States for satellite launches,
but the aim seems to be to rival the United States by cheap launches with the
Aryan. As the launch capability created is 925 kg, nearly three times that of
the N-II, in the future the aim ma.y be to launch two satellites in tandem
simultaneously with the same launcher.
Independent Technology: "Liquid Hydrogen"; "Inertial Guidance"
[QuestionJ Well, the H-1 rocket is a genuine development from this; it is cap-
able of launching a 550 kg stationary satellite, isn't it? With the increase in
capacity over the N-II, the name of the program itself was changed. What was
the reason for the original alteration?
[Answer] Mainly because, as you said, the N pro~ects depended to quite an
extent on U.S. technology, there of course existed various restrictions. Even
_ for the H-1, an independent technology was developed and introduced, and it was
thus not necessary to buy U.S. parts. However, with the continuation of the N
project in this way, restrictions due to imported technology will probably drag
on into the distant future. So changing over to the H project means strengthen-
ing independent kinds of development.
With regard to practical development methods for the H-1, various arguments have
been raised; initially the opinion was even that it should be completely
redeveloped from the first-stage rocket. However, utilization of the results
up to that point meant using as the first stage a single N-II first stage just
about as it was, and development af completely new technology, using liquid
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~
t~
,
i~ydrot~,en as fuel, for the second stage. A high-power, newly developed third
sta~e is intended.
~c2uestion] Liquid hydrogen is to be used as the second-stage fuel. How does it
compar~ with fuels up to now?
[AnswerJ Hitherto, the fuel used in the second stage has been a hydrazine
system, but as this is toxic it is extremely dangerous. As against this,
hydrogen, as I am sure you will agree, is of interest to many people as a clean
energy source of the future. It has the further advantage that the specific
thrust (thrust per unit weigh~) is high. But hydrogen is highly explosive;
- liquid hydrogen has to be used, and cryogenic temperatures, below -200�C, are
necessary for this.
The United States has not released this cryogenic technology, but recently the
climate has changed and now it is all' right to sell it. Hnwever, a policy that
liquid hydrogen engines be produced by independent technology has been explicitly
proposed in the Space Development Committee. We too have reached the stage of
having confidence that it is good.
[Question] Other technology envisaged for the H-1 rocket is guidance control,
isn' t it?
[Answer] Guidance and control are to ma.ke the satellite follow a given .:ourse
to the target. For the first "Ohsumi" satellites launched in Japan by the
Spacesliip Researcli Institute, Lambda 4S, etc., there was practically no guidance.
However, in order to launch satellites for practical use, because greater pre-
cision is necessary, radio-controlled guidance in the N-I and inertial guidance
in ttie N-II were introduced in the form of black boxes from the United States.
lnertial guidance is the detection of attitude and acceleration in three direc-
tions with gyros (compasses) and accelerometers as sensors, the calcu'dtion of
position by the rocket itself, and the performance of position corrections. This
- is being used in the H-1 as independently developed technology.
Overtaking America and Europe, and Even Leading the World
[Question] Wtiat is the actual situation with regard to launching the H-1?
[Answer) At the present time it is planned to launch a test second stage in
January or February 1986 and a third stage in 1988.
[QueStion] The U.S. space shuttle and the European Aryan somewhat exceed Japan's
H-1 in capacity, and yet the H-1 is scheduled to take the lead when put to prac-
tical use a number of years from now, isn't it? This being so, what is the sense
of Japan's still carrying out individual development?
-[Answer] Can there be said to be much sense in Europe's similarly not having
recourse to the United States but having the "independence" of launching satc~l-
lites, according to its requirements, by its own means? In this respect, the
space shuttle has reliably more than four times the launch capability of the
l{-1, and the comparison is largely unfavorable; looking at predicted satellite
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neecls, however, the launch capacity of the H-1 in Japan will be of sufficient
pract~cal worth.
For 1990-1995, it is thought that stationary satellites of 800 kg will be
required. Improvements in the H-1 will meet these needs.
Further, by developing the H-1, the difference from the much-delayed space
technology in the United States and Europe can be shorten_.~ ,omewhat.
[Question] H-1 rocket technology centers on the liquid hydrogen engine and
' inertial guidance equipment, but it could be something that has uses in other
- fields, couldn't it?
[Answer] Liquid hydrogen is closely related to the wide utilization of liquid
hydrogen energy in automobiles and aircraft; the control technology permeates
, all electrical machinery. From the raw material aspect, too, something new is
~ being contributed. Furthermore, we think that software for calculation methods,
etc., will produce further advances in computer-assisted design (CAD).
Even though Japan's space technology appears promising, it will surely raise
the fears of the United States and the West. But there are sufficient grounds
_ for thinking that, like automobiles and electronics do at present, it can lead
the world.
COYYRIGHT: Nikkei-McGraw-Hill, Inc 1981
9600
CSO: 4105/83
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SCIENCE AND TECHNOLOGY
EAST GERMANY TO IMPORT INDUSTRIAL ROBOTS FROM JAPAN
Tokyo NIKKAN KOGYO SHIMBUN in Japanese 20 May 81 p 1
[Article: "45,000 Robots in the Next 4 Years, East Germany To Introduce Indus-
trial Robots, Perhaps Mostly From Japan"]
[Text] Jost Prescher, president of the GDR's WMW (Machine Tool) Export-Import
Corp, who is currently visiting Japan to proonote economic cooperation between East
Germany and Japan, held a press conference on the 19th at the Hotel New Otani in
Akasaka, Tokyo. At the conference, President Prescher stated that the GDR plans
to introduce 45,000 robots into their factories by 1985 in order to solve the
labor shortage. The GDR has ~ust begun to develop robots, and the volume of
production is thought to be very low. Therefore, there is the possibility that
the GDR will import most of the planned 45,000 robots from Japan and other foreign
countries. Industrial robots that the GDR intends to introduce into their f ac-
tories include work feeder machine (10-12 percent), pressing work feeder (18-20
~ percent), and other machines, such as painting robots, replacements for manipu-
lators for forging, and deflashing tools for casting.
President Prescher has come to Japan in order to promote the trade of machine
tools between the two countries. He explained the current situation in the GDR's
machine tool industry and future trends in its technological development. He also
explained the GDR's export plan for Japan.
The GDR's machine tool industry consists of four combines (industrial complex)
which belong ta the Machine Tool Export-Import Corp.
The GDR startecl trading with Japan more than 20 years ago and has established a
firm status among Japan's bearing makers and tractor manufacturers. The GDR
plans to captui-e 4-5 percent of the Japanese imQort market for machine tools in
the future. Japan has mainly exported to the GDR specialized machine tools such
as joint connecting tools.
COPYRIGHT: Nikkan Kogyo Shimbunsha 1981
CSO: 4105/165
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- SCIENCE AND TECHNOLOGY
LASER-SIIVSING MACHINE TO INSTRUCT ROBOT IN JOB ENVIROI~IENT DEVELOPED
Tokyo JAPAN ECONOMIC JOURNAL in Engliah Vol 19, No 956, 26 May S1 p 9
[Text]
A robot-instructing machine in America, but they have the and positions (in coordinates of
to teach versatile robots to c~rawback of requiring the use lines drawn from various points
perform complex jobs like a of complex compuier pz~og*am- of the objects). The system
human worker by ~mderstand- ming and computer languages rougtrly understands its fin- .
ing in what form, shape and ~d ~us p~ pcoblems af diags by comparison with its
condition each work~ object ~ng much time to operate memory.
comes in and what are its ~d~genors, The system then "feels" the
surroundings, including. the The new device learns ebout object of work by its laser
whereabouts of necessary tools, ~y ~j~t ~.~r~} oq and its poinfer beam hitting a single
has been developed by a Japa- s~~~ a matter ot a poitrt of the object with a small
nese governmental laboratory, f~,r, a~d transmits all ~ight spot, accurately under-
it was recently learned. informatian to robots, even standing the location of that
The new achievement made . remotely. point from the beam's direc-
and disclosed by the Electro- p~~o~g to the laboratory, tional angle and other factors.
technical Laboratory of the its "Environment Teaclung ~t~g w~~ several different
Agency of Industrial Science System" includes a laser Spot~ by the beam will allow
and Technology, Ministry of pointer, a TV camera, a display the system to ascertain the
International Trade & Indus- ~~ce, a keyboard and aa object's configuretion, pasition,
try, could provide a valuable ~ormation processor. and size by the aid of its
clue to more sophisticated and p human operator first ob~ memory. All surrounding
- complex factory robotization in- S~~ an~~ object of work and coadltions may be gresped bY
creasiagly dPmanded in Japan all surraupding conditions -the system tbrough its laser
and elsewhere. through a monitoring TV beams. A very oomplex object
Most such robots so far de- camera and screen and feeds is conceived by putting
veloped and pcectically applied ~1 his finciings into the system together divided images.
are capable of performing ~rough the keyboard. Pre~ ~ Finally, all that the system has
repeated simple jobs like thase ~o~~y ~e sy,stem is made to understaod is corrected by the
along a given production line. re~ember all basic and operator by his display screen
Some 'simllar robot-teaching ~~ard work object shapes checks�
machines have been developed
COPYRIGHT: 1981, The Nihon Keizai Shimbun, Inc.
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SCIENCE AND TECHNOLOGY
FULL-SIZE STEEL FRAME MODELS TO BE USED FOR EARTHQUAI~ TESTING
Tokyo JAPAN ECONOMIC JOURNAL in English Vol 19, No 956, 26 May 81 p 9
[Text] ~e series of expeciments on Standards. In addition to-ex-
the resisiance of ferro-concrete ~r~ from the spoasors, many
buildings to earthquakes, joint- o~ from governmental and
ly sponsored by the Japanese academic research institu-
and U.S. Governments, will tions from both countries, and
move on to its second round of various Japanese construction
using a full-size steel frame ~d steel caanpanies have
model from this year. p~~icipated and ~vill continue
This new round also will be for to do so.
a three year-penod as ~the ~
The staydies, conducted at the
first, which began f;om ~1~ Ministry of Construction's
_ summer of 1979 and will end this B~d~g Research Institute in
summer. Tokyo, have so far involved a
Such research may have a1- ~~~.story indoor ferro-con-
ready attained quite a high crete building, a concrete .
level in both countries and elso- s~cture sinewed by manY
where. But there are some S~,~a~r steel rods.
basic problems, including just
how a buiiding will be ciefor- The follow�up ~~-Ye~'
med by the force~ of earth- second round to start in August
quakes, especially in the case when -the original Japan-U.S.
of buildin8s in real daily use, agreement coacerned exQues
which are yet to'be clearlY an' Swill ynvonv~e~~ gt~l
framed
swered. - ~~r~ }ry ~oncrete.
- The experimental studies are
jointly sponsored and managed The ariginal two-y~T aK~
by Japan's'1~tinisu'Y of C0n- ment will be extended three
struction and Science and years by a aew a~reement to be
Technology Agency and Am~c'- si~ed on May 18. The second
ica's National Science Founda- roiu~d~ will coat some ~~500
tion and National B~esu of milllon.
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SCZENCE AND TECHNOLOGY
LEGALITY OF CARTEL FOR MACHINE TOOL UPHELD BY W. GERMANY
Tokyo JAP_AN ECONOMIC JOURNAL in English Vol 19, No 956, 26 May 81 p 6
[Tex t~ Japanese machine tool - ~
builders' export cartel can be ~e cartel.
legally acknowledged, Wes~ The cartel, formed by some
Germany's Federal Cartel 30 major machine tool builders
Agency told the Japanes~ last January on the basis of the
Government recently. Exporc ana t~port ~rranseccion
Government sources quoted ~ aimed at moderating
~ the German agency as sayin}; exports to Europe in connection
- that the Japanese cartel setting with the EC's recently created
floor prices for machine tool system ot watching the inflow
sales in Europe dces not cvn from Japan of machine tools
counter to the aati-Irust 1aw of equiPped with numerical con-
that country. trol devices, machiaing centers
The German agency judged it ~ and some other products.
lawful after its two and a half A1oqg with the floor pricing
months' probe oi related data system formed by the cartel
presented by the Japeneae members, the government
Government. added the restrictions on "out-
' Behind the favorable ~ sidets" to the effect mentioned
judgment of the German truat- abo~e so that exports may be
bi~sters is the administratlve curbed eifectively.
guidance of the Japanea;e The floor pricing system is
Government on the acti~ of applied to shipments to 15 Euro-
"outsider" makers in export pean countries - l0 EC
traasactions. The governme~nt members, Austria, Norway,
hes ordered non~artel memb,~ Spain, Sweden and Switzerland.
makers to abide by the floor It will be enforced for one
export pricing system set . by y~ ~til this December.
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SCIENCE AND TECHNOLOGY
GOVERNMENT, SIIYIICONDUCTOR INDUSTRY WORK TOGETHER
Tokyo JAPAN ECONOMIC JOURNAL in English Vol 19, No 956, 26 May 81 p 7
[Text] The Japanese Govern- from . the industry con-
ment and semiconductor in- cerned. This time, however,
dustry are now working it was not so.
closely to prevent the long- The Electronic Industries
smoldering Japan-U.S. Association of Japan im-
semiconductor trade issue mediately announced in ~he
from reldndling and de- name of President Sadakazu
veloping into a"war." Shindo (who concurrently is
They seem to have chairman of Mitsubishi
learned a lesson irom the Electric Corp.) that his as-
recent negotiations between sociation would not raise
the Japanese and U.S. Gov- any particular objection to
ernmeats on their bilateral the Gavernment's decision
automobile trade issue, as it understands that Japa-
which ended with . Japan's nese and American semi-
concession - voluntary ex- conductor makers should
port restraint by Japanese compete on an equal footing.
automakers. The 587-member associa-
tions thus has virtually. ac-
Taritt cut ~pt~ the Gpvernmer~t's
At the May 7-8 summit step.
talks in Washington, Prime Calm reaction _
Minister Zen~o Saizuki in-
formed U.S. President Executives ot aiajor Japa-
Ronald Reagan of Japan's nese semiconductor manu-
readiness to harmonize im- facturers generally me~
port tariffs on inte~ated generous comments. Vice
- circuits from the prese~t . president Atsuyoshi Ouclri of
10.1 per cent. for Japan and Nippon Electric Co. (NEC),
5.6 per cent for the U.S. to Japan's largest semicon-
4.2 per cent, effective next ductor maker, said that
fiscal year. although the adyerse impact
This notification complies of the IC tariff lowering on
with the U.S: Administra- his company should not be
tion's strong request to eo- underestimated, NEC would
force far in advance the not make a particular com-
agreement at the Tokyo plaint to the Governmenk
Round of multilateral trade Against the backgro~md of
negotiations that both na- ~e industry's rather calm
tions would lower their IC reaction to the Govern-
duties to the same rate of 4.2 ment's decision is that Japa-
per cent by 1987. nese semiconductor makers
Such a one-sided conces- are ahead of their American
- sion of the Government in ~~~~parts in techaiques
trade talks so far have in- to mass produce 64-kilobit
vited a strong resistance
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dynamic random access conductor market.
memory (RAM) chips and Bilateral IC trade
other very lazge-scale inte-
_ grated circuits (VISIs), Simultaneously, NEC and
which are considered to be Fuptsu have been discon-
"strategic next-generation tinuing ship~ e~:ts of 16K
products." RANLs from Japan to the
Another factor that keeps U.S. spot market to cope
them calm is that they feaz with the ever deteriorating
any careless reaction might spot quotaiions.
stimulate American senti- As a result, the bilateral
ment against rising impurts IC trade, which was some
from Japan and, if worsa ~ 2.8 billion in favor of Japan
comes to the worst, lead in calendar 1980, has been
them to start a campaign to running against it since the
"bovcott made-in-Japan beginning of this year.
products" in the. wosld's According to EIAJ, Japan's
largest IC markeG IC exports to the U.S. during
- After learning many less- the first quarter of this year
ons from the 1977-79 "semi- dropped 27.3 per cent from
conductor war" between Ja- the same period of last year
pan and the U.S., NEC, W~F 13,948 millioa During
Hitachi, Ltd., Toshiba Corp� the same period, Japan's
and Fujitsu Limited have imports of Americao-made
located their semiconductor ICs reached about ~ 16.3 bil-
manufacturing plants in the lion, or around ~2 billion
U.S. Mitsubishi Electric and larger than exports. If fiscal
other medium-scale IC or around ~2 billion larger
makers are going to follow than exports. If fiscal year
suit. 1980 (April, 1980-Mareh,
Moreover, NEC recently 1981) is taken as a yardstick, .
doubled the 16K dynamic the bilateral IC trade was
RAM p~oduction capacity of ~985 million in disfavor of
its plant in Mouni.ain View, Japan, an EIAJ spokesman
Calif. to 600,000 chips said
- monthly. It is going to build Even with these efforts,
a second plant to meet the American semiconduc-
mounting demand from tor industry seems to still
]ocal customers. "feel uneasy about the
The foreriu?ning Japanese strength of its Japanese
compaaies are now trying counterpart which already
hard to strengthen ~eu has growa into a"~1-tril-
marketing. capabilities and lion a year" industry. Opti-
raise the share of mack-in- mism is umvarranted under
USA Japanese-brand prod- this situation, some indus-
ucts in the American semr trymen say.
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SCI~.NCE AND TECHNOLOGY
~ MITI DRAFTS INTERIM PETROLEUM POLICY REPORT FOR 1980'S
Tokyo JAPAr1 ECONOMIC JOURNAL in English Vol 19, No 956, 26 May 91 p 4
~ T~ t ~ Cracking residual oil will be situatioh will smoothly Cit the
the petroleum policy of the supply siWation" in the 1980s.
Ministry of International Trade As the group anticipated,
& Ministry in the 1989s. light products, e.g., kerasene
'11~e outlook is contained in an and diesel fuel, will grow short.
interim report prepared by an By comparison, heavier prod-
- ad t~oc committee composed of ucts wiil tend to be oversup~
MITI's Agency of Natural Re- plied. A basic solution to the
sources and Energy and the anticipated ~oblems is con-
Ministry's key burea~. verting the heavy residual oils
The MITI group envisaged into light products, the group
that the Government should concluded.
subsidize the oil industry's at- 1t~e oommittee expressed
_ tempts to crack residual oil. concern about the oil com-
Equally significant, it advo- panies and their "physiques."
cated that ANRE ease its con- In light of the foreseen lack of
' trol over pcoduct oils' prices so a~ ~dustry growth, the report
that refiners can raise prices ~d that refiners should co-
for li~ht product oils more easi- op~ate in such ftelds as pro-
ly. In addition, the committee ~ment of crude oi1 and de-
said that oil companies should velopment of, new reHning tech-
be encouraged to tie up among nology and alternative energy
themselves to impcove their so~~. tieupa should be
Cnancial positions. . encouraged, regardless of oil
The basic oil problem is seen companies' nationality, the re-
as the increasing demand for ~d,
lighter products, such as Sasa- Creation of pow,erful Japa-
line and kerosene. But the li~t nese oil companies comparable
crude oils' supplies will decline. to the present international
The report thu5 said: "There is giants was ruled out as virtual-
no guarantee that the demand ly i~~ible and unnecessary.
- COPYRIGHT: 1981, The Nihon Keizai Shimbun, Inc. ~
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SCIENCE AND TECfiNOLOGY
KYUSH'J ELECTRIC TO OPERATE FIRST OTEC TYPE POWER PLANT
Tokyo JAPAN ECONOMIC JOURNAL in English Vol 19, No 956, 26 May 81 p 9
[Text] Japan's first trial power ing to the well-known principle.
plant deriving energy from the of gasification of either liquid
temperature difference be- ammonium or liquid fluorocar-
tween the siuface and depth of bon with the warmed-up sur-
~ the ocean is expected to be put , face seawater. The force of
~ into operation sometime from gasification turns the power
this year to next by Kyushu generating turbine, and the
Electric Power Co. spent gas is rnnverted into the
- Such studies on OTEC (ocean original liquid state by the deep
thermal energy conversion) seawater of 10 degrees C. or
~ have been conducted in various even colder.
places in the world; in Japan, The test plant will cost a
notably by Saga tTniversity, rather moderate 'f 70o million
in northern Kyushu. or ~ 800 million to build b~
According to Kyushu Electric cat~se the principal hardware
Power's head office at Fukuoka already is on lease to Saga
near Saga, it is now plannir,g to Univecsity, which cooperating
build Japan's first test power with the company, has already
plant with an output of 50 succeeded on a smaller experi-
kilowatfs within its oil-burning mental scale in generating 700
Shin Tokunoshima power watts of power with a 50-meter-
station on Tokunoshima Island long deep water intake pipeline
It hopes to start construction at Imari City, Saga Pref.
early this autumn and comEdete The company envisions
, it by August, 1982. ultimate development of a
'R~e island is in the Amami much larger power plant of
Oshima island chain betu~een several thousand kilowatts in
southern Kyushu and Okin~wa. output for application to many
The prospective ~-ower N~lant remote islands if the test plant .
will utilize the mother statioa's works well. Problems yet to be
cooling water discharge to l~eep solved include such plant's
the local surtace seawat~ it resistance to stormy waves, be-
takes in at a high temperature haviors of oxygen and other
and maintain the temperature gases coming up from the deep,
difference between the surface and proper local maintenance
and depth at around 30 de~ees of ammoaium, fluorocarbon
C. throughout the year. � and other media.
The plant will have an about The company's plan has been
4-kilometer long deep water motivated hy the fact that it
intake pipeline stretching 500 has to service 37 communities
meters, down the local sea s~- on 30 remote islands with 170
face to obtain much colder oil-burning power stations at
water at that depth. double the cost of its services in
The Qlant will work accord- . Kyushu Proper.
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SCIENCE AND TECHNOLOGY
LIVECON DEVELOPS METHOD TO PRODUCE STRONGER CONCRETE
Tokyo JAPAN ECONOMIC JOURNAL in English Vol 19, No 956, 26 May 81 p 9
[ Text ] A new mefhod of producing ~ mixtiaes in concrete> are made
concrete thaE is at least 30 per uniform in humidity by a
cent stronger than that vacuum prceess of removing
produced by conventional the air around such particles.
- methods has been developed by . When the processed sand
Liveoon Engi~neering Co., I.td. pazticles ase blended with
of Tokyo. The eight-year-0id~ cement, each gi~ain of sand aad
concrete engineering firm said ~e~ poW~r will make a
the concrete was 12o to 220 per ~~~ell formation," the herd ~
ceit more resisiant to repeated ~re of the new kind of con-
shocks, such as earthquake. ~~,e.
According to the company, .~is ~~~g d~ away
its Sand Enveloped with p~b~~$ ~~mon in con-
Cement (S.E.C.) System ~ntional concrete producing
promises much better "com- methods such as bleeding -
pressive stre~gth' or capacity Water leakage - and settling of
to withstand external str~s as a~,~~~ p~l � shell forma-
well as beading strength. or ~a~ ~ite with aggregates to
the capacity to resist repc~ted ~.event such settlement. They
jolts and other eacthquake strong attec6ment
shocks without any increase in of concrete to steel and other
the necessary amount: of structures.
cement. 'll~e S.E.C. System has ~e remarkable zarthquake
also bee~ applied to production
of innovational types of mortar, resistance of the new mettad
ready-mixed concrete, and ~S ~n confirmed by Masa- .
- "shotcrete" (a special soft con- nori Tsuji, an expert in such
~crete pressure-blown into engineering at the Tokyo
cracks, holes and gaps). Coilege of Science, and by a
The company's already com- series of relentless tesfs. A
mercialized achievement has scale-model rectangular
~awn wide attention among column of concrete made by
- Japanese civil en~neerin~; and the best conventional method
~onstruction experts because broke down after being hit 38
Japan's newly-revised Con- ~ gucceasion by e falling
struction Standard Law sets a steel ball, but equivalent
far higher official standard fur columns made by the S.E.C.
earthquake resistance than System fell only sfter being
heretofore. All future buildings struck 89 to 125 times.
will be subject to the new law Lecturer Tsup has evaluated
_ from June. tfie new method for minimizing
As the company explained, concerdration of water or air
- sand particles to be mixed beneath aggregates or internal
with cement and aggretr,ates steel rods where stress gathers
cstones, pebbles and other hard and concrete destruction starts.
COPYRIGHT: 1981, The Nihon Keizai Shimbun, Inc.
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- SCIENCE AND TECHNOLOGY
BF.IEFS
INDUSTRIAL ROBOTS EXPORT--Hitachi, Ltd. a major electrical machinery builder,
is expected to shortly sign an agreen~ent with Britain's Lansing Ltd. to sell
industrial robots in Britain. Under the marketing tie-up arrangement, the
- Tokyo company will supply the British forklift-truck maker with scores of arc
welding and other general-purpose robots a year. Hitachi is eager to sell
more robots in the U.S. and Europe. The company late last year provided
America's Automatix, Inc. with a license to produce industrial robots. While
exporting 30 robots to Europe last year, Hitachi plants [as published] to step
it up this year to some 200 units. The company envisions creating new robot
sales footholds in West Germany, France and three Scandinavian countries in the
future in addition to Britain. (Text] [Tokyo JAPAN ECONOMIC JOURNAL in English
Vol 19, No 956, 26 May 81 p 6J
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