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APPROVED FOR RELEASE: 2007102109: CIA-RDP82-40850R040400054045-3 FOR OFF[CIAL USE ONLY JPRS L/9995 - 21 September 1981 9 - a ar~ Re o~t p p CFOUO 56/81) FB~~ FOREIGN BROADCAST iN~ORMATION S~RVICE FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050045-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400054045-3 NOTE JPRS publications contain information primarily from foreign uewspapers, periodicals and books, but also from news agency _ transmissions and broadcasts. Materials from foreign-language sources are translated; those from English-language sources are transcribed or reprinted, with the original phrasing and other characteristics retained. Headlines, editorial reports, and material enclosed in brackets are supplied by JPRS. Processing indicators such as [Text] or [Excerpt] in the first line of each item, or following the last line of a brief, indicate how the original information was processed. Where no processing indicator is given, the infor- mation was summarized or extracted. Unfamiliar names rendered phonetically or transliterated are _ enclosed in parentheses. Words or names preceded by a ques- tion mark and enclosed in parentheses were not clear in the original but have been supplied as appropriate in context. Other unattributed parenthetical notes within the body of an item originate with the source. Times within items are as given by source. Tne contents of this publication in no way represent the poli- cies, views or attitudes of the U.S. Government. COPYRIGHT LAWS AND REGULATIONS GOVERNING OWNERSHIP OF = MATERIALS REPRODUCED HEREIN REQUIRE THAT DISSEMINATYON - OF THIS PUBLICATION BE RESTRICTED FOR OFFICTAL USE ONI,Y. APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050045-3 APPR~VED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050045-3 FOR OFFICIAL USE ONLY JPRS L/9995 21 September 1981 JAPPN REPORT (FOUO 56/81) ~ C~NTENTS SCIENCE AND TECHNOZOGY Middle, Near Eaat Provide Market for Zarge Piants (Shigeru Matsui; BUSINESS JAPAN, Aug 81) 1 Aluminum Industry Struggling for Survival (BUSINESS JAPAN, Aug 81) 6 High-Polymer Whisker Crystals Show Great Promise (BUSINESS JAPAN, Aug 81) 10 New Polyimide Resin Developed for Printed Circuit Boaxd (Kenji Tsukanishi; NITACHZ HYORON, Apr 81) 12 ECONOMIC Enterprises Find Welcome in Middle East Countrins (Yasuf wr,i Sugiyama; BUSINESS JAPAN, Aug 81) 29 - a - [IIr - ASIA - 111 FOUO] FOR OFFICIAL USE OItiLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050045-3 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400404050045-3 FOR OEFICIAI. USE ONLY ~CIENCE AND TECHNOLOGY I-IIDL~LE, NEAR ~ST PROVIDE MARKET FOR IA,RGE P~ANTS Tokyo BUSINESS JAPAN in English Vol 26, No 8 Aug 81 pp 41-43 ~Article by Shigeru Matsui~ ~Te:ct ] I T was only after the tirst oil crisis at the end of 1973 that Japan's in~.iustrial plant exports to the 1liddle and Near East began progressing a(ong the ri~t lines. Since then. Japanese enterprises have been exerting eFforts to advance into the area in order to secure the oil resources that support Japanese industry and to seek markets for Japa- nese-made industrial plants. .4s indicated in the attached table compiled by the ,Llinistry of Intcrnational Trade and Industry, lapan's - in~lustrial plant exports to the Middle and Near East after fiscal 19 i~ liave shown fluctuations in share and valile in relationship to the nation's total industrial plant exports: ? 1.8% in tiscal 1975, 36.3�Io in fiscal 1976, 21.~no in fiscal 1977, 16.~~'o in fiscal 1978, 31.O~Io in fiscal 1979 and 19.~~"0 in fiscal 19~p. This shows that the nation's industrial plant exports to the !~liddle and Near East increased at the annual growth rate ot '_~.~3~~ over the past six years. Currently, tha Ministry of International T'rade and , ~ Iridustry ('r11T[1 hopes tu achieve more than 510 b~lliun a year in industrial plant e~cpurts. In fiscai 1979, such exports rapidly increased by 35.~~~ to S 1 1,?80 million as compared with w3,730 ~niUion in the previous tiscal y~ar. Even though ~11T1 lioped to see the value of such exports in fiscal 1980 surpass the S l0-billion level, dley remained at the level of - only 58,930 million, showing the first negative growth ui . the past decade. The mair causes of this decline were the conflict between lran and Iraq and ttze uneasy pofiti~al situation in the Middle and Ne~r East ;~s a whole. Because of the Ira~~-(raq w3r, lapan's industrial plant expurts to both cc~ur~rries wcre suspended. The nation's exports ol' purt tacilicies tu Iraq were also suspended and new negutiations f~,; other exports wcre postponed. ~levertheless. MITI plans to expurt such plants tu wurld markets at a level ot more than S 10 billion a year. In this _ c:~se, the larges[ emphasis is to be placed un exports to the ;~tiddle and Near East. In regiunal shares ~Isu, the compara- tive stability in recent years is expected tu result in more - 1 FOR OFF[C~AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050045-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050045-3 FOR OFFICIAL USE OyLY negotiations tor importing larger plants. Relying on abun- ~ dant oil dollars, such ~rabic oil producing cuuntries as Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain, Oman, [raq and Libya are actively engaged in ~ mudernization programs and completing thier industrial facilities and infrastructure. This is quite clear when we see their economic developmenc plans. Egypt, with limited - foreign currency reserves in the past, lias now become - affluent as it is now producing sume 600,000 barrels of oil every day and receiving a large amount in fees from the uperatiun of the expanded Suez Canal. Overseas Eeyptians . are alsu remitting large amounts of foreign currency to their home country. In addition to s~:h tavorable cunditions as stated above, the most attractive tact to Japanese industrial piant manufacturers and exporters is that, except cor Egypt, all the Arabic oil producing countries repay the costs of such ~ plants in cash. ~ Japan sought new markets for industrial pla: ts in China, but the large shift in China's econumic policy an.~ its lack of foreign currency reserves have suspended almost all the projects, and negotiations for Japanese industrial plants. to z be exported have all but scopped. There is no such anxiety concerning plant exports to the Middle and Near East. Despite such favorable conditions, the political uneasi- ness in the Middle and Near East could result in revolutions, coups d'etat, terrorism and political changes. Even in these cases, Ilowever, it is expected that only those in power . would change; the basic policy to modernize the nations would remain. Even in lran's Islamic revolution that overthrew Stiah Pahlavi's regirr:e, the new regime led by Ayatollah Khomeini expresses its strong intention to _ continue to construct the petrochemical plant which was under construction in a joint venture between the [ranian government and Japan's Mitsui gro~~p of enterprises. As far as Japanese industrial plant manufacturers' efforts to establish some footing in the 11i~dle and Near East are concerned, sume quick actiuns were made without proper ~ study ~n the beginnin~ as they wanted to acliieve some notable results. However, the more they liave come to ~ understand the actual situation in these areas and accumu- lated experiences through their undercakings, the more . their moves have becume effective. They have now entered a phase of fair competition with rival enterprises from Europe and the United States. They have learned many lessons through encounters with Western enterprises on the spot. There are no longer e;ccessive competitions with their overseas counterparts in this market. ~'nder such circum- stances, Japanese indusuial manufacturers have been classi- fied quite accuratPly by the Arabic oil producing countries concerning tl~eir tields of specialty, technological capacity. and engineering capabilities. As the backgrou~~d of the ' excessive competitions in earlier years, there was the fact tf~at J~pa~lese shipbuitders, whu were suifering from stag- nant business. ~ctempted tu export various machines for land use and tried to win orders even through dumping to secure so?ne share in the market. ~s the Arab oil producing countries came ro hnow the incernal situation and capability uf each of the Japanese enterprises, these ~ompanies could no longer ~ontinue - 2 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050045-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R044400050045-3 FO~2 OFFICIAL USE ONL~' ' dumping their industrial pl~nts. 1'hey have undergune a kind ot natural selection and thuse which could nut meet the strict requirements of :he Arab oil producing countries ' have gradually been eliminared from the competition. The requirements impused by the Arab oil producing cuuntries on the technolugical level oC Japanese enterprises are ~u severe that thuse wliich du not hav~ sufticient engineeru~g capability and technolo~cal capacity cannot participate in the biddings. ln the case of industrial plants tu be expurted tu the Ntiddle 3nd Near East, each of the plants is so large in both scale and value that it custs at least from several scores of billion yen ro~~00 billion at the most, several times larger than thuse beine exported tu Southeast .asia ur Central and Suuth :~merica. This being the case, therefore, nu une Japanese manu- farturer ran praduce alune an industrial planc tur whi~h it h~s received an order: instead. several manutacturers are required to take part on a joint basis in the production of _ the plant by manufacturing portions in which they are technical more advanced than the others. On the part of the Arab oil producing countries also, this type of joint participation is thought more acceptable and it has becorr~e a common practice for the Japanese enterprises to organize international consortiums together with European or U.S. enrerprises to jointly fill orders for industrial nlants. 1n the case of industrial plants to be exported to the Asian region, an individual Japanese manufacturer is able to meet the requirements, but it cannot do so in the case of those to be exported to the Middle and Near East. Japanese industrial manufacturers are no longer trying to sell their products through dumping, but they have their own fields of speci ilization and technology and now prefer the method of filling orders on a joint basis with European or U.S. manufacturers through an international consortium. ~ The types of such international consortiums have . become rather fixed in recent years depending on the history of cooperative relations with their Western counter- ~ parts as well as how they recognize the technical capability of Japanese industrial plant manufacturers. Unless there is agreement, no consortium can be effectively organized, but once they have achieved a good reputation in r~upplying indust;ial plants on a joint basis, the participants in such an _ international consortium are likely to continue their coop- � eration over a long period of time. ' Under such circumstances, the roles of Japane~EEO nese enterprises will establish bwi^ess operations there. Such expansion is assured because the Japanese ways of management and technological guid- ance as wel] as Japan's modern produc- tion technology are regarded highly by the people of ~iiddle East coun- tries. Table 3. Approved Exports of Industrial Plants by Region ~uni~: st,oou? i~ FYt9?6 FY1977 ; FYt978 ' FY1979 FY1980 ~`o. ~ ' No. ; ~ No. ! ~ No. ; 40. , , of Value Share oi ~ Value j Share of ' Value Share ut ~'alue Share : of ~ Value ~ Share itrms items ~ ' items ~ ! items ; items Southeast Asia ~'l6 ~ 1.=60.919 : 15.8 ?38 i 1.848.d56 ?1.5 ~?26 , 2.4U6.975 2?.6 187 1.878.143 16A , 196 2.d35.917 2'.3 ~ ~tidJle ir.d ' I ~ Near Eas~ 38 ''.906.57: 36.3 ~ 94 I,851,440 ',1.5 87 ~ l.~?0.434 i6.3 , 118 3.624,;3? 31.0 ' l24 1.1J3.771 19.5 West Europe ' ~ ~j ~ ' and tinrth T9 3?6,8ti9 ' i.l 7? ; 49?,642 ~ 5.7 68 I:IS,?04 ~ ?.S 95 458.535 3.9 ; 105 772,999 3.6 Amena I ~ ' Central ~nd ~ ~ ~ ~ South Amenca '~Z' ~>>g�392 14.7 l40 i 8)0,4a6 ~ 9.6 ! l67 ' 2,021,304 �?3.2 ; 1?0 ' S94,834 5.0 , BI 791,105 ~ 89 i i ~fric~ ~ 5~ ; y19.491 t0.2 ~ a2 I.951.1t4 ~:?.7 ; 46 ; 640.589 I 7.3 ~ 41 ~ 863,'45 '.1 4t . 1.647,845 ' 18.4 t ~ ; Ocean~a ' ti~.3U7 0.6 ' l3 ~ 1??,140 . 1.~1 ' !3 i 329,382 ; 3.7 ' 1? ' 48.284 . 0.4 ?6 ?63.757 3.0 i ~ ~ ~ iommuaisc i04 I.349,9Y5 13.1 ~ l~l ~ I.Sll,l36 ' 17.6 ~ l46 : 1,695,086 19.4 170 4,317,708 36.6 ' l04 1.2'76,602 14.3 h:,~c ~ To~~l-----^ti80 ~SA05.5?5 Ioo ~3G , a.60~.37s ~ t00 ~53 ' 8.7?9.17a ' 100 ! ~43 'IIJSa,981 t00 ; 6~7 8.93t.996 ~ l00 - - - ~ ;Saurce. .~linistry of Incemahonal Trade & Industrvi COPYRIGHT: 1981 Nihon Kogyo Shimbun CSO: 4120/327 END 31 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050045-3