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APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR O~'F[CIAL USE ONLY JPRS L/10303 4 February 1982 Ja an R~ ort ~ p CFOUO 8/$2~ ~ F~~$ FOREIGN BROADCAST ~NFORMATION SERVICE ~ ~ FOR OFFICIAL U5E ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 NOTE _ JPRS publications contain information primarily from foreign newspapers, periodicals and books, but also from news agency - transmission~ and br oadcasts. Materials from for~ign-language seurces are transla te d; 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 indicat~rs such as [Text] or [Excerpt] in the f irst line of each item, or following the last line of a brief, indicate how the original inf~rma.tion was processed. Where no processing indicator is given, the infor- mation was summarized or extracted. Unfamiliar names rendered phonetically Qr transliterated are _ enclosed in parenthe ses. Wo:ds 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 origina~e with the source. Times within items are as given by source. The contents of this publication in no way represent the poli- cies, views or 3ttitudes of the U.S. Government. - COPYRIGHT LAWS AND REGULATIONS GOVERNING OWNERSHIP OF MATERIALS REPRODUCED HEREIN REQUIRE THAT DISSEMINATION OF THIS PUBLICATION BE RESTRICTED FOR OFFICIAL USE 0'NLY. APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FUR OFFICIAL USE ONLY , JPZS L/10303 4 February 1982 1 ~ ; JAPAN REPORT (FOUO 8/82) CONTENTS POLITICAL AND 50CIOLOGICAL Suzuki's Reelection Possibilities Discussed (Editorial, Raisuke Honda; THE DAI~Y ;OMIURI, 8 Jan 82).... 1 General Election Rumors Bec ane Rife (Keiichiro Kuboniwa; THE JAPAN ECONOMIC JOURN~IL, 12 Jan 82) 3 Japan, U.S. Agree To Begin Joint Study on Defense Cooperation (Editorial; MAINICHI DAILY NEWS, 12 Jan 82) 5 Comment on Ambassador Mansfield's Remarks on Bilateral Relations (Susumu Ohara; THE JAPAN ECONOMIC ~JOURNAL, 12 Jan 82)...... 8 Planning for Emergencies (Editorial; THE DAILY YOMIURI, 10 Jan 82) 9 Suzuki Bares Instructions for Joint Security Studies , (THE DAIL~i YOMIURI, 13 Jan 82) 11 Suzuki Issues New Defense Concept , (Yuji; THE JAPAN ECONOMYC JOURNAL, 19 Jan 62)........ 13 Soviet-Japanese Relations (Editorial; MAINICHI DAILY NEWS, 9 Jan 82) 15 Editorial Outlines Important Aims of Political Circles in 1982 (Editorial; TH~ JAPAN ECONOMIC JOURNAL, 12 Jan 82)......... 17 Complicated Ties Between Nakasone, Watanabe (Takehiko Takahashi; MAINICHI DAILY NEWS, 13 Jan 82)....... 19 Editorial on Administrative Reform (MAI~IICHI DAILY NEWS, 11 Jan ffi) 21 - a- ~III - ASIA - 111 FOUO] FOR OFFICIAL U5E QNLY _ APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 FOR OFFICIAL USE ONLY Fur~~iyn Minl~L~r W~arn~ Staff 'ro F'ropare PoC 'ltuugh Weather' (Minoru Hirano; THE DAILY YOMIURI, 10 Jan 82) 23 MILITARY Security PaneZ Approves Joint Defense Study (MAINICHI DAiLY N~WS, 9 Jan 82)........... 25 Effects of Increased Defense Spending on Econany Viewed (Editorial; MAINICHI DAILY NEF)S, 10 Jan 82) 27 ECONOMIC U.S.-Japan Perception Gaps, Trade Imbalance Problems Disaussed (Aritoshi Soejima; JAPAN ECO~IOMIC JOURNAL, 12, 19 Jan 82).. 29 ~'ew U.S. Makers Take Part in N~'T Procurement Biadings (JAPAN ECONOMI:C JOURNAL, 12 Jan 82) 34 MITI Studies Ways To Help Ailing U.S. Auto Pro~ucer (JAPAN ECONOMIC JOURNAL, 19 Jan 82) 36 Domestic Auto Sales Last Year Shawed Dip, Excluding Midgets (JAPAN ECONOMIC JOURNAL, 19 Jan 82) 3 8 Fujitsu To Carry Out Large-Scale Capital Increase (JAPAN ECONOMIC JOURNAL, 19 Jan 82) 39 Toyota, Nissan Turn Efforts To Boosting Small Truck Exports ~ (JAPAN ECONOMIC JOURNAL, 19 Jan 82) 40 _ Briefs Auto Parts Mission to Spain 41 Nontariff Barrier Reduction 41 Toyota Auto Part Imports 41 Iraqi Vehicle Purchase 42 SCIENCE AND TECHNOLOGY Information Processing, Hitachi Te~minal System Discussed (Hiroyuki Osako; HITACHI HYORON, Aug 91) 43 NEC's Vice President Discusses How To Lessen Semiconductor Trade Frictions (JAPAN ECONOMIC JOURNAL, 8 Dec 81? 53 Organization of Daikyo Oil Company Viewed (NIHON KEIZAI, 21 Dec 56 Coal Imports From Soviet Union Delayed (YOMIURI SHIMBUN. 25 Dec 81) 61 - - b - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-04850R000500030012-0 FOR OFFICIAL USE ~NLY ~ Finance Minister, MI:I Discuss Relief of Aluminum Industry (ASAHI SHIMBUN, 25 Dec 81) 63 Toyota President Discusses Company's Plans (NIHON KEIZAI, 28 Dec 81) 64 ~ MITI To Purchase Additional 10,000 Tons of Aluminum Ingots ~ (NIHON KEIZAI, 30 Dec 81) 69 ~ MITI To Begin Efforts for Reorganization of Aluminum Industr~ (YOMIURI SHIMBUN, 30 Dec 81) 70 Japan-U.S. Atomic Study To Begin in April ~ - (JAPAN ECONOMIC JOURNAL, 12 Jan 82) 72 Japan, U.S. Steel Firms Move To Boost Canplementary Product Ties " (JAPAN ECONOMIC JOURNAL, 12 Jan 82) 73 EPDC, TVA of U.S. Agree on Technical Exchanges (JAPAN ECONOMIC JOURNAL, 12 Jan 82) 74 = Five Power Utilities To Help NffiI Develop ~APWR Type ReacMor (JAPAN EC~NOMIC JAURNAL, 19 Jan 82) 75 NTT's Data Division May Be Made Private Company (Ichiro Kifune; JAPAN ECONOMIC JOURNAL, 19 Jan 82)......... 76 Gene Recanbination Test Guideline To Be Altered (JAPAN ECaNOMIC JOURNAL, 19 Jan 82) 78 - In~]onesia Brown Coal May Be Utilized for Methanol (JAPAN ECONOMIC JOURNAL, 12 Jan 82) 80 Hitachi, General Motors To Develop Car Electronic Control System (JAPAN ECONOMIC JOURNAL, 12 Jan 82) ' 81 - Race Begins To Develop Servo Valve for Robot (JAPAN ECONOMIC JOURNAL, 12 Jan 82) g~ Toshiba Freezes Original Plan To Mass Produce 64K Ram Chips (JAPAN ECONOMIC JOURNAL, 12 Jan 8~2) 83 Nagaoka University Successful in Ion Beam Thermon~clear Fusions (�JAPAN ECC~NOMIC JOURNAL, 12 Jan 82) 84 F~~,jitsu Fanuc Cooperates With Tatung on Robot Marketing (JI~AN ECONOMIC JOURNAL, 19 Jan 82) 85 Yamaha To Enter Into Aircraft Er~gine Field (JAPAN ECONOMIC JOURNAL, 19 Jan 82) 86 Ministri~s Differ as How To Revise Data Canmuni~ations Laws (JAPAN ECONOMIC JOURNAL, 19 Jan 82) 87 Toray To Commercialize 'Strongest' Fine Ceramic (JAPAN ECONOMIC JOURNAL, 19 Jan 82) 89 - c - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 FOR OFFiCiAL USE ONLY POLITICAL AND ~OCIOLOGICAL SUZUKI'S REELECTION POSSIBILITI~S DISCi~SSED Tokyo THE DAILY YOMIURI in English 8 Jan 82 p 3 [Editorial by Raisuke Honda: "Suzuki's Hard Year"] [Text~ It seems likely that Prime MSnister Su- strongly trusted by the Dremier. ,'~lso, zuki w111 be reelected president ii the there aeema to be growing distrust oi the eral-Democratic Party tLDP) next Novem- prime ministcr hSmaeL'. - ber but this does not mean the year will In the current Diet sassion which will be without political turbulence or crftical ~ resumed in late January, the oppasitian tests for him. � parties are expected to demand a large- 3uzuki displayed 8rmness in hiu New scale income tax reduction as their way to Year's press conierence and in a.n inter- condemn the government's economlc poli- view over televlsion. He'll need this be- cies. - cause he must overcome some obstacles in How well will the premler survive this the way oi his reelection. onsiaught? The Erst obstacle will be to achieve F'o~ Auother dimcult polltical problem will gress in overcomirg deflcit-ridden state bc the expected series oi verdicts in the Snances and hanciling the normal session Lockheed payo8 trfBLs thia year. ai the Diet. The ruling on former All Nippon Air- Ttie premier said earlq last year thAt he wa~s (ANA) chairman Toku~i Wakasa is would stake his political life on admin- scheduled for January 28, and verdicts on latrative and rinancfal reiorm, promising former tranaport miniater Tomtbaburo that � deflcit-covering government bonds Hashimoto and Takayuki Sato, former would be discontinued bq flscal 1984 to parliamentarq tranaport vlce-minister, will establish sound state ~nances. follow ahortly therealter. But his promiaes seem less vaJid now. ~e prosecution ia expected to make its There mas a remarkable drop !n tax re- ~mand for the sentencing oi lormer venue for Sscal i981. 'I'he government has p~~e minister Kakuei Tanaka before the decided to issue government bonds worth summer vacatlon, and the court's verdict '~375 billion next flscal year, but even thi~ ~ expected in the autumn. ls eapected to leuve the government in the Needlesa to say Tanaka's verdict wlll red by i~800 billion. have an impact on Suzuki's political Under these circumstances, the F'lnance future. Ministry is con~idering borrowing funds Judging from the way the trial has gone, = which were to be used tor redeeming gov- ~~re is little chance that Tanaka will be ' ernment bonds to tide the government acquitted. ` over the revenue shortiall. And if, as eacpected, he is lound gullty, ~ Because of these developments, pessimis- thia will ~olt the ruling LDP. There is a = tlc voices are being heard withln the gov- possibility that form~r premier N'.ild may ~ ernment and the LDP tYiat there will be again raise the demand. to cleanse the no choic~ but to defer flnnnciu! rehabllita- p~rty of Tanaka's influence. tion. ThW could undermiue and perhaps cause At the same tinie, critlcis:n is beln; the collapae ot the three pillars of the Su- leveled at the Snance minister, who !s y~~ e~~l~trations-tT,e 8uzukl, Tanaka 1 FOR OFF[CIAL USE ON~.Y APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504030012-0 ~'t)!~t t)#~'F''_('!~"._ t.!`+f.: ()Nd:Y and Fuknda factions. And this could uam- aoe Suzuki's campaign for reelection as I,DP president. Suzulcf cannot aSord to take his reelec- tlon fcr granted. He should remember also that neither Tanaka nar Miki nor F~kuda succeeded in wlnnii~~ reelection as LDP presideat. COPYRIGHT: THE DAILY YOMIURI 1982 CSO: 4120/128 2 FOR OFFIC[AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR ONFIf'IAI. l1SN: ONLY POLITICAL AND SOCIOLOGICAL - GENERAL ELECTION RUMORS BECOr~ RIFE Tokyo THE JAPAN ECONOMIC JOURNAL in English 12 Jan 82 p 10 [Article by Keiichiro Kuboniwa] ~TextJ 'I'here hav~~ been rumors circulating tn h~~ the hastion of the Tanaka faction, has amun~; rulin~; and npposition parties recently mapped out secretly "a list of ~ossible candi- that a dissolulion ot the House of Repre- dates for the n~xt general election." One sentatives and an ensuing general election, meml~er of the Suzuki faction, who just ha~ pcned to drop in and see the list, was com- long considered to be scheduled in 1983, pletely astounded, saying "at the time when might be held this year. Although there are many who predicted the general election all iDP members are in a flamboyant mood would be held simullaneously with the Upper over the reshuft7ing of the cabinet and the House election slated in 1983 at the earliest, 1.1)P leadership, the Tanaka faction is some ohservers have started saying, since steadily making preparations for the general late last year, that "the general election will election." be held in 1982 betore lhe court ruling on The Tanaka iaction took hold of the post of Kakuei Tanaka" or simultaneously wilh na- LDP secrelary general in the last personnel tionwide local elections in April, 1983," reshuffle, and furthermore, managed to re- thereby casting ripples over election-con- tain Accounting Bureau Chief Yoshiro sci~~us I)ir.tmen. Hayashi, their own man, in the same post c~ne run~or, circulating among the ruling vehemently rejeeting the demand by the I,il~~,r;~l I~~~ma~ratic Part,y and the (?pposition tiuzuki faction that the post of accounting N~�~e Lib~~r.ii ('lub and the Kumeilo, had it: bureau chief must be in the hands of the fac- . ��t'rim~� Minisler Suzuki mi~ht dissolve the tion which holds lhe LDP presidency. This I.ow~~~r llause in an aU~~mpt t~, tsrcak the retention of their own man is considered as d~~~?dl~x�k if administrativ~� rcform da+s not anothcr move to prepare for the coming gen- ~;o ~madhly." 7'hc other rumor had it: "If cralelectionamongLDPmembers. 'I'anak~~ is tiurc In bc judged kuilty in the firsl Foreign Minister Yoshio SakUrauchi, who I.~x�khc~~ci payuff trial this fall, the general took command of managing the simultane- ~ ~~I~~cti~?ri is very likely to take place txfore ous elections two years ago as LDP secre- thal rulin~." F:ven ~mc memtx~r ~~f the tary general, and led the party into an over- - K~~n~~~tr~ f,~c~iinn said at its plcnary m~~~~lin~; whelming victory, said: "We did not win be- I.~tc~~ast y~~ar ~~I have hcarvl a rwnor lh~it the cause of simultaneous elections. We won be- ~;~~n~~ral ~~Icclion is likely in 1!~u'l," c~usin~;an cause Prime Minister Masayoshi Ohira sud- upruar .~mong Iacti~m memhcrs prs~scnt at denly died. It is dangerous to think that we ih~~ mcetinK. ~ can win anotfier simultaneous election again 'I'h~~sc~ rumors arc amplifird e~ven further next time. When we lase simultaneous elec- i~~ i1~~~ lau�t ihat thc�'1'anaka faction, the must tions, lhal will be a complete defeat. The pow~~rful am+m~ the I,DP, is making speedly risks involved are too high." In saying this, pr~~p~irali~ms for th~ general eleclion. In ~kurauchi voiced a stcong opposition to the _ N~w~~mb~~r last ycar, the LI)F''s National Or- double eleclions and conveyed his opinion to ~;:~n~r..~tiun ('ommiU~~~, whichwasconsidered ~e present LDP leadership. - 3 F'OR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 F()R ()I~NI('IAI. l1tiH: ()Nl.l' 13ut sumc o( Japan's busincss cireles have - repc?rtediy toid the prime minister that "ltiey cannol stand lhe idea of having three elec- tions in 198:i." That is, if lhe general election is held sometime in 1983 aside irom nation- - w~ide lncal slections in April and the Upper }louse Eleclion in June, the business circles could not affotd to pump out t~he political funds needed for those election8. Probably, ~~�ilh this rnnsideralion in mind, Fukuda fao tion membcrs declared last ycar that it is na- tural to think the elections wiU be double- Ir,irml~~d " Su�r.uki f;tction memhcrs also said "Primc Minister Suzuki, who will be able to win the reelection for the I.DP presi- dency this fall, will nol complitate the politi- cal scene by dissolving the Lower l[ouse," thereby denying lhe early dissolution of the Lower }iouse. Despite all those arguments, the only time possibly considered for the general election in am evcnt is either at the same time as na- tionwide I~xal eleclions or the Upper House ~leclion, or one year earlier or later than tli,is COPYRIGHT: 1982, The Nihon Keizai Shimbun, Inc. CSO: 4120/128 . 4 _ FOR OFFICIAL USF. ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFFICIAL USE ONLY POLITICAL AND SOCIOLOGICAL ~ JAPAN, U.S. AGREE TO BEGIN JOINT STUDY ON DEFENSE COUPERATION Tokyo MAINICHI DAILY NEWS in English 12 Jan 82 p 2 [Editorial: "Joint Defense Study"] [Text] Japan and the United States agreed during the 18th Japan-U.S. Security Consultative Committee meeting last week in Tokyo to begin a joint study on defense cooperation in cases of emergency in the Far East outside of Japan. The joint study "on emergency" means bilateral - consultations on the possible use of Japanese' Self- Defense Force bases by the American forces or Japanese logistics support to the U.S. in military conflicts on the Korean Peninsula. The study is also based on the gnideline of the U.S.-Japan cooperation ~ adopted at a previous committee meeting. , The guideline stipulates, among others, the roles ~ to be played by the United States Forces and the Japanese Self-Defense Forces to prevent possible aggression . against Japan and to cope with the possible emergency cases in the F'ar East which may seriously affect the security of Japan. The agreement on the joint study on the emergency cases in the Far East is regarded by some as the coming into the open ot the "most dangerous point" in the U.S.-Japan Security Treaty. As a prerequisite, the guidellne said that the committee meeting would not discuss three problems - the prior consultation system, Japan's con- stitutional restrictioa and the th~ee ntinnuclear principles. The Japanese gavernment has said that Japan's action would be limited within the present regulation and the interpretation oi laws. 5 FOR OFFiCIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504030012-0 ruK ~~r~~~rA~. t�h ~1tv~Y Lt. Gen. Charles Donnelly. commander, U.S. Forces in Japan, earlier ealled for the joint use of - tranaportation systems, airport and harbor facilities and also ~PiI-Defease Force facilities and ec~uipment in cas~s of emergency. - These poin:s may contradict Japan's basic . defense policy and go beyond the scope of "individual self-defense right." Apparently aware oi this,' the governma~nt has been reluctant to begin the joint study on the emergency cases. Why then did the government reach the decision? The~ biggest reason for this was the government's efforts to improve U.S.- Japan~se relations which have experienced rnugh sailing due to the so-called trade and defense fric- tions. We wonder if the emphasis on the defense ef- forts would help the two countries to erase such frictions. The agreement also contradicts Japan's basic ' pr.inciple not to become a bIg military power and its pledge to create peacetul relations amoag Asian nations. Since the end of World War II, Japan fias followed makeshift ways in its relations ~'th the United Sta~es. The Japanese governmeat must now establish comprehensive relations with the U.S. based on ideals and practices. - Decon trol Of Inform a tion Kanagawa and Saitama~refectures are expected to b~come the first prefectures to imple~nent the new ord~nances for the decontrol of information in the hands of prefectural governments in September and December, r~specti.vely. Abundant information and ' materials should not be monopoiized by the central or local governments because they are gathered for the people by the people's tax money. The speed oi lnformation decontro~ has been slow in the central government which has to deal with diplomatic, defense, and public peace and order. On the contrary, local governments dave Intormation closely related with the public life and some ot them - have actively studied the possible. decor~trol ot in- formation. ~ According to the Kanagawa outline, information compiled in the form of "official documents" would be avallable to the public in principle. ONy seven items rel~ted with resider~ts' privacy or police in- vestigation of crimes would remain controUed. The outline said that business firms must also open their 6 FAR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 MOR Ol~FICIAL USE ONLY informatipn which wffl be "necessary to protect local residents fron disasters, pollut~on and dangers from coirimodities." Some qaestions remain. Should the process of decision-making leading to the decontrol be kept secret? ~Iow can prefectural residents acquire an enormous amount of information? We hope the prefectural authorit~es will fully esamine the various cases in the new ordinance ahich will ~become the model for other prefectures. COPYRIGHT: MAINICHI DAILY NEWS 1982 CSO: 4120/128 7 ~ FOR OFFICIAL USF ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R004500030012-0 FOD~ 0l~~I('!AL UtiH; ON1,Y _ POL:CTICaL AND SOCIOLOGICAL ~ ~OrIlKENT ~N ?,1~ASSADOR MANSFIELD' S REN',ARKS ON BILATERAL RELATIONS ~ Tokyo TEIE JAPAN ECONOMIC JOURNAL in English 12 Jan 82 p 10 [Article by Susumu Ohara: "Another ~ercepti~n Gap?"] [Text ] The address by U.S. Ambas- same. especially a great friend like - sador Mike Mansfield at the The press luncheon was held Am~assador Mansfield. ~oreign Correspondents' Club ac the request of the ambas- The truth might lie, in my oi Japan last week remarkably sador himself because he - differed in approach from his Wanted to give his assessment ~u~~ent, in the simple fact previous public statements on of the current trade frictio~ ~~esa club'wnewsmen present the U.S.-Japan bilateral rela- before he leaves for hofii for ~ ~ tionship, consulfakions and home le~ve. '~'~a $roup at the press luo- � cheon. Thero were~many Japa- True, he first expressed high He was uneasy and concern = re ard for Ja n's s ial about what might be ehead ~e Journalists . amobg the g Pa P~ oWer-crowded suchenc~, but effort in increasing its defense of the bilateral economie.rela- mast of them �wece~ pr~sent as budget tor fiscal 1982. True, he ~onship in the months to come. individuals, nat reaponsi6le fur repeated his "song" that. the 'The message was clear, but it coverage ot 'ttie apeech, They relationship between fhe linited ~ doubtful whether it r~lly le[t it up to the]Cas~iForeign StaQes and Japan is "the most reached the audience he aimed Ministry) press elab members, important bilateral relationship at. With only one.exception, all most .of whom~ wrote ~ their in the world - bar none." t1?e majop vernatcular daily articles based on the prepared But the address was clearly papea's in Tokyo carried ~ text without showing up at the different from his previnus spe~~ch only in brief stories FCCJ. ones in that it urged only Japan the next day. The ambas- to take actions to sulve the sador knew that his remarks They failed to take note of the current trade frictions, "We were "hard worcls for my Japa- impot~ance of . Qle ~mbea- ' can point to the problems as we nese Eriends and cQlleaguea to eador's speech which was full _ see them, but only Japan can hear," But it seems that they � of frlendly advice and warn- take the actions to solve them," were not so hard at Ieast to hie ings. They saw nothing nevV~in hr slresscd. 1 n contrast, he friends in the Japanese media. the ~ddress in terms- of never mentioned in the speech Or was this becauae the "speeific" propoeals. Th~s in the need for the U.S. exporters Japanese press did not like to itselE may �illustrate another to make greater efforts to hear any hard words from a example of "perception gap" uf _ penetrate into the Japanese foreign source? Probably not. the av~lousness~ of the cnrrenf market, although he said. in his The Jnpanese Are rather overly economic situation between the a~nswer to a question later that sensitive to any critical words Japenese and Americans. his view on this remained the of them by foreign people, . COPYRIGHT: 19t32, The Nihon Keizai Shimbun, Inc. CSO: 4120/128 8 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034412-0 FOR OFFICIAL USE ONLY _ POLITICAL AND SOClOLOGICAL PLANNING FOR EMERGENCIES Tokyo THE DAILY YOMIURI in English 10 Jan 82 p 2 ~ [Editorial] ( Text ] Th~ Japan-US Conaultative . Committee on Security . ~Friday agreed to launch a study covering bilateral cooperation to cope with aa emergency in the Far East. In concrete terme, the atudy is to determine in what ways Japan can support US military operations - in case of another war in , Korea. The .Tapan-US security setu~ is a hollow promisP : if both sides are unable to cooperate with each other. Article 6 of the treaty allows the US to use basea in - Japan to clefend this country as well as9 the peace - and security of the Far East. Naturally, Japan has 'to cooperate. A.nd Japan cannot reject the planned study for that reason. - But the study shouId be carried out strictly within the limits of existing laws, including the constitution. ' . The study of an emergency in the Far East ahould - not be conducted unconditionally. ~ ~ - ~1o Prior flbligatiflns . ~ ' ' As a precondition of the joint study, it ia stateci .that both governments are absolved from takyng mandatory legislative and administrative steps to i~n- : plement the findings of the atudy. This means that ~Japan is under no prior obligation. Under this prin- cipl~:, Japan will be able to diatinguish betw~een areas - where it can coopera.te and where it cannot. Further- more, the prior consultation system ahould be strictly - anplied in carrying aut the joint atudy. - The restoration of Sino-Japanese and SinaAmeri- - can relatione has drxstically changed the Korean - equation. The US military presence in South Korea virtually ru1ES out another military clash on the - peninsula. - Contingency Planning' But, one muet prepare for the worst. If ever there should be another clash in Korea, the ~ poasibility ' _ 9 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000540030012-0 ~z~R n~FeciA~. (1SE ~1~II.~r arises that Japan could get involved~ ~erhaps ~on the - grounds of collective defense, although the constitu- - -tion forbids such an excuse. - The US is not always right ia its judgments. Japan - needs to set up a system under which it can judge - situations coolheadedly. The prior consultation sys- tem serves this purpose. Japan should also prudently study the reperaussions of allow:ng US aircraft based ~in Japan to engage in direct battle. Du'ring negotiations for the return of Okinawa, then prime minister Eisaku Sato gave a de facto "yes" to the sally of ~US aircraft from Okinawa. To- day, such consent needs reexamination when it bears on the fate of this country. ~ ~ Prime ~iinister Suzuki and other cabinet ministers should h~ kept directly informed of the nature of the studies. Otherw~ise, they may not be ab:e to~nake a free decision in the face of a fait acc~mpli. The Diet, on its part, should conduct an in-depth study on security. Otherwise, the study of emergency ' situations may adrance to such an extent that it ha~ - , passed civilian control. ~ , (Tanuary 10) ; COPYRIGHT: THE DAILY YOMIURI 1982 CSO: 4120/135 ~ 10 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFFICIAL USE ONLY - POLITICAL AND SOCIOLOGICAL SUZUKI BARES INSTRUCTIONS FOR JOINT SECURITY STUDIES Tokyo THE DAILY YOMIURI in En glish 13 Jan 82 p 1 [Text] Prime Minister Suzuki Tuesday announced a set of "principles for national security studies," emphasizin g the need for establishing a defense setup "well suited to Japan as a country encircled by the seas." The premier's views on The "hedgehog theory." become s focus of discus- the natinn's iuture defense however, runs counter to sions in the ordinary Diet priorities came in the form the Ground Seli-Defense session to be reconvened of instructions to Defense Force's (C38DFi argument January 25. Agency Director - C~eneral that land troops are the Besides the "defense ef- Soichiro Ito and Chief Ca- �~core of milltary poa~er" of forts well geared to Japan binet Secretar~ Kiichi Mi- a country. as a maritime country," the yazaa~a aiter a cabinet The Defense Agency as a instructions also gave spe- ~ meeting Tuesday morning. whole is in favor of a de- cial i~mportance to keep any In the extraordinary fense setup based ~ on a ~~arbitrary moves" by the nine-point instructions, the "well-balanced bulldup" oi Defense ABency in check in prime minister also called the nation's grour.d, mari- dealing with defense-related for the Defense Agency to time and alr forces. problems. be '�as prudent as possible" Indlca,tions are that the In engaging in the recent- in its joint studies with tre premier's "sea-encircled = US on contingencies in- country's hedgehog defense ly agreed Japan-US joint - volving the Far East regiun, setup" theory will ca~ase studies on defense coopera- so as not to cause dfsarry strong reactions and opposi- tion in the event of con- with the Foreign Ministry tlon for "thinking light of tingencies in the Far East, and other government ground forces." the premier's instructicns agencies. said, the Deiense Agency ftegarding relations be- should use utmost prudence Chief government spokes- tween the premier-proposed and be in alose consulta- man Miyazawa said later nea~ defense concept and the tions without f~,il with other Tuesday that the premler's existing defense buildup mir.istries and agencies concept of '�defense setup program, Mtyuzawa suggest- ~oncerned. befltting to a seagirt coun- ed the poss1b111ty of the The agency should bear trv" can be interpreted as program being replaced by ~~ind the opinlon Lhat meaning that Japan 1n its a new defense outllne in the Japan-US joint deiense dcfense effor~s should give favor of greater emphasls on studles might lead even- priority to maritime and t1~e marltlme und u1r de- tually to a sort of collec- uir defense capabilities ra- fense capabilitles. ther than ground, forces. tive defense setup, which Miyazawa quoted ~~.he was banned by Japan s The new concept Ls in ppemier as saying that the . constitution, the premier line with the premler's be- nine-point instruction were told Ito. lief that the goal of Japan's aimed at unifying views defense ePiorts should be within the government on Adding to the eonstitu- set at makin~ this country defense matters, aince de- tlonal issue, the premier spiny "hedgehog" capable fense issues are certain to instructed the agency h~ad of drlving back militarv at- to be in close touch with tacks on Japan before the Foreign Ministry and enemy forces land, Miyt?- zawa explalned. � 11 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000540030012-0 HOR OFFICIAI. USE ONLY thr CubUiel Le61~luLlou Bu- reau regarding possible re- vision oi defense-related laws in connection with the Japa:z-US defense stud- ies. Reiterating the need for = the Defense ARenc~ tn be circumspect not to Bo arbitrarily, the premler also reminded Ito of the need for close consultation in proceeding with the plan- ned Japan-US exehange of military technology. COPYRIGHT: THE DAILY YOMIURI 1982 CSO: 4120/128 - 12 . FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFFICIAL USH: ONLY PULITICAL AND SOCIOLOGICAL ~ SUZUKI ISSUES NEW DEFENSE CONCEPT Tokyo THE JAPAN ECONOMIC JOURNAL in English 19 Jan 82 p 10 [Article by Yuji Koido] [Text] Prime Minister Zenko Suzuki recently io- Corrimenting on Suzuki's instructions, structed Director-Ge~eral of the Defense Director-General Itb said, "This is the tirst Agency Soichiro Ito to strengthen the Mari- time that the Premier has talked time and Air Self-Defense Forces by "map- tense comprehensively.:He has asked, me to ping out a deferLSe plan or system appro- search tor ways to defend Japan in its own priale for a maritime nation." ~The premiec ways, so his instruction shouW be reflected also counseled Ito that Japan needs to be "a upon the future course of our detense pla: " - porcupine" to be able to inflict heavy Yet, some oECicials of the Defense Agency damages upon an invader. have wondered why Suzuki "had ~ given Suzuki's instructions are, ot course, de- those instructions now." The argument that signed to cope with an expected heated de- Japan should be "a porcupine" or strengthen bate on defense in the coming Ordina ,ry Diet its maritime and air~torces is not new and ' sesion slated to reopen next Monday. The has been discussed time and again in the Defense Agency is planning, however, to re- past. Why then did Suzuki talk about view a fundamental detense buildup pro- defense now in such a comprehensive mai} gram again.. ner? Replies .to this question may be thaee- In addition, Prime Minister Suzuki has in- (old: ~ str~icted Ito on the following points: -It is inevitable that there will be a heated -The defense budget was expanded as a debate on deferBe in the coming ordinary step to achievE the 1976 defense buildup plan, Diet session slated to reopen aoon, so the not to cope witt~ the deteriorated internation- Suzuki launched a balloon agairut expected al environmen~ opposition ~illing oi government leaders. -The remaining defense budget outlays -Suzuki wanted to place a brake on will be distributed equally in later years. t}~e defense budget, which has increased -The personnel cost accounts for 40 per more substantially than others. That is, he cent ot the 19s2 defense budget ( Y 2,586.1 bil- wants to reduce the weight oi grosmd forces lion or 0.93 per cent of GNP), but the Defense in the budget and put more on maritime and Agency should consider a more etficEent air forces ko build up ma jor weaponry, utilization of its budget. -The emphasis on maritime and sir forces -Japan and the United States agr~ed in e ~5~~~ ~ meet the U.S. request for a de- recent consullation to start formal studies on ~ possible joint military actions in case ot fense buildup in Japan s neighboring seas. emergencies in the Korean Penir~sula and the 'I'h~s was clearly illustrated when a visiting Far East. Such studi~ should not be done, U.S. Congressional delegation told Dietmen however, in such a way that they invite criti- of the ruling Liberal Democraflc Party that cism sug~esting they will portend the en- they highPy appreciate Suzuki's'1982 defense (orcement of the right of collective seli-de- budget which inereased by 7.54 per cent over fense. That is banned under the ConstituCon. the previous.year, but urged Japan to make 13 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 N't)N UH'H'1('IA1, lJtil~: UNI,Y furthrr dcfert,r rfturts in d'J!rmnl acaas lika securing sealanes to Uansport crude oil from the Middle East to Japan. _ Among various instivctions given by Suz~ilci, Defense Agency offici~ls are especially concerned over repulsion of in- vading forces at Japan's waters' edge; a "porcupine"-like d~ense of Japan by utiliz- ing� highly-sophisticated surface-to-air _ missiles and the cost ceiling on the expansion o[ personnel. Ftirthermore, contrary to Suzuki's emphasis on maritime and air forces, the Defert~e Agency is seeking balanced growth in all three (~round; mari-- time, and air) branches ~ their forces, so the premier's instruction will invite another - heated debate within the Defense Agency. Another problematical point is whether Suwki's instructions were issued siter his con~~ltation with the n~ling,LDP. There is a possibility that his ir~tructions came~ out from a recommendation from Chiet Cabinet Secretary Kiichi Miyazawa alone. Thus chances are likely that the Suzuki's instruo- tions will be a target o[ debate within not only the Diet, but also the Government and the LDP. COPYRIGHT: 1982, The Nihon Keizai Shimbun, Inc. CSO: 4120/128 14 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOK UMFI('IA1. litil~: ()Nl.l' POLITICAL AND SOCIOLOGICAL SOVIET-JAPANESE RELATIONS _ Tokyo MAINICHI DAILY NEWS in English 9 Jan 82 p 2 [Editorial] [Text] Prime Minister Zenko Suzuki called on the Soviet Union to exercise prudence in dealing with the Polish issue, sounding a warning that the Soviet government has been interfering indirectly in Polish affairs. He - conveyed the warning through Soviet Ambassador Dmitrii Polyanskii who visited t6e prime minister on the occasion of his departure from Japan for reassignment. There is no knowing ~xactly to what extent the Soviet Union has been involved in Poland's crisis. dudging from the position of Poland and Soviet-Polish relations, w~e cannot say that the Soviet Unioa had nothing to do with the recent turn ot events there. Polish Prime Minister Wojciech Jaruzelski said he had tak~n the step toward military rule in order to avoid "a civil war." There is little doubt that by civil war he meant Soviet military intervention as in the case of Hungary and Czechoslovakia. The biggest concern of the world in connection with the Polish problem is whether or not there exists Soviet military intervention. In this regard, the United States and Western European countries ~ recognized the existence ot the Soviet Union behind the developments of the Polish situation and called on the Soviet leadership to exercise seli-restraint. Prime Minister Suzuki has takea a similar step by issuing a warning to the Soviet Union. The Eastern European crisls poses a very dif- ficult problem for the West because it is impossible to expect radical reform or a chan~e ~ by force ia this area, given the strength oi the Soviet Union which regards the area as its sphere of influence as a tesult of victory in World War II. The Western side b~lieves 15 ~ EOR OFFIC[AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-44850R000500030012-0 FOR OFFICIAL US~: ONL'~ that fui~ lamental human rights are ~ot fully guaranteed there. Against sucb a background, the West has been very caref.~l in dealing with the Eastern European problem. 'Their cautious manner, on t6e other hand, has helped the Soviet Union to strengthen its coatrol of Eastern Europe. The only thing left for the i~lest is to keep on expressing its concern and call~ng on the Soviets to exercise restraint. All we can do is to wait for a gradual liberalization ot the Soviet Union and Eastern Europe as a whole through a revival of detente. The liberalization of Eastem Europe through increased exchanges between the West and the East made little headway mainly because detente was on - the wane. . Thus viewed, thefuture of the Polish issue lies in ~ - the diplomacy vis a-vis the Soviet Union. The keynote of diplomacy toward the Soviet Union is to spealc out ~ when we must without closing the road leadin~ to dialogue. Prime Minister Suzuki also expressed hi~h expectations for the top-level consultations between _ the two countries scheduled for Jan. 20 Iu Moscow. It was the first time since February 1978 that the . Japaaese prime minister had met the Soviet am- bassador. In the face of the chilled relations, we sincerely hope that bilateral dialogue will soon be revived. COPYRIGHT: MAINICHI DAILY NEWS 1982 CSO: 4120/135 , 16 FOR OFF[C[AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFFICIAL USE ONLY POLITICAL AND SOCIOLOGICAL E.~ITORIAL OUTLINES IMPORTA1uT AIMS OF POLITICAL CIRCLES IN 1982 Tokyo THE JAPAN ECON~MIC JOURNAL in English 12 Jan 82 p 10 [Editorial: "Politics tn 1982"] [Text] The lhree most important acts demanded of Japan's ~ political circles in the new year of 1982 undoubtedly will be vigorous prnmotion of administrative reforms, elimi- nation of trade frictions, and adequate handling of the ; expected serious aftermaths of the court decision on the Lockheed payoff case. ~ Why i~ vigorous propulsion of administrative reforms ~ so important? It is not simply because the Suzuki Ad- i ministration's fate virt~ally depends on it. It is vital, ~ first of all, because a complete review of the nation's en- tire administrative and dependent systems is manda- I tory, now that the Japanese economy has ; into a slow-growth period. Administrative reforms are also necessary if .Japan truly wants to prevent its economy from developing a re- calcitrant disease of its own, similar in nature to those plaguing other advanced countries. A complete review of welfare systems is especially urgent. Another rationale for administrative reforms is'.the fact that if the governmenl deficits are long lefl ~t the current exhorbitant levels, it wi~~� not ohly rpb pilbliC finances of highly-needed maneuverability and effec- tiveness but also may very well lead to vicious inflation. As to international frictions, the crisis had barely been avoided for lhe timc bein~ as Japan hiked the growth i�ate of its defensc budget for Ihe new fiscal year to 7.75 pc~r cent at ihe end of last year. This apparently appro- priate step, however, seems to be highly unpopular not ~ only a?nong politicians but also among the general pub- lic. Many of lhose who are opposed to higher defense out- - lavs maintain that as long as Japan is under the Peac~ ('onstitution, it should do its part in international co- ~ ~~pc~rati~n not in the field of military hardware but in eco- nomic assistance. Some, on lhe other hand, believe that 17 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFFICIAL USE ONLY Jap~~~~ ~~~�i r~~ua~~ U:e t~wtste~.~ ~~f the lteagan Ad- ministratiosi which seems to be committed to outright confronlation with the Soviet Union. The contentions of those opposed to greater defense ap- propriations are understandable to some exterit, it is true. Are those people, however, really aware of the fact that not only the Americans but alsa EC member coun- tries are convinced that Japan's economic prosperity de- pends primarily on its penny-pinching in the field of de- fense? It is futile in the face of such a strong conviction to - lry to reason with them that economy and defense are lwo different things. We cannot simply ignore the fact that such a view is widely prevalent in Western countries and that this conviction is now being further fanned up by the reality of the severe 8-9 per cent unemployment rate. Japan has to pay "social expenses" for the sake of peace. Moreover, it is doubtful whether the Japanese people are willing to increase the nation's economic cooperatian to other countries by all that mach. At present, Japan's ODA cofficial development assistance) represents a mere 0.34 per cent of the nation's GNP. Are the Japanese people truly willing to increase the ratio to the 3-4 per cent level, the ratio of defense expenses against GNP in EC countries? The final outcome of the Lockheed payoff casre involv- ing former Prime Minister Kaku~i Tanaka is, of course, anybody's guess at the moment. It is, however, clear that - the court decision on the case, when it comes, will have serious repercussions not only the Tanaka faction and the Liberal Democratic Party as a whole but also on the entire Japanese people. How will the ruling party cope with the expected repercussions? As long as Japan's democracy and the people's confidence in politics depend - strongly on the conservative party's rea~ctions to the final court decision, it is necessary from now to be fully pre- pared for the eventuality. COPYRIGHT: 1982, The Nihon Keizai Shimbun, Inc. . CSO: 4120/128 18 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504030012-0 F~JR OFFICIAL USE ONLY POLITICAL AND SOCIOLOGICAL - COMPLICATED TIE~ BETWEEN NAKASONE, WATANABE Tokyo MAINICHI DAILY NEWS in English 13 Jan 82 p 2 [Article by Takehiko Takahashi] [Text] On Jan. l a tent was put in the stature as a new leader, to call the Tanaka residence.. The garden of Adminlstr~tlve and express greetings lo influence o[ the Tanaka taction Management Agency Director Nakasone on New Year's Day and the streagth ot Taaaka General Yasuhiro Nakasone's . w o u I d h a v e v a l u e i n himselt were appareat. Among residence ~which is being strengthening Nakaso~ie's thecallersweremembersotthe rented from former Giants political position. present cabiqet and pact~+ ot- Manager Shigeo Nagashima). Forelgn Minister Sakurauchi ficIal~s, as well as leaden ot the Tables were placed here and asked k'iaance Minister political worid and pmminent there in the garden. Many New Watanabe, "What is your, governmentofficials. ' Year callers were there. Among ~o~ ~~y? To this, Wata- Presenting a decided contcast those who stood out were pabe replied. "The same as to this show of iniluence by Foreign Minister Yoshio yours." When Sakurauchi Tanaka was toraner Prime Sakurauchi and Finance continued with "What about the Minister Takeo Fukuda. For ~ Minister Michio Watanabe. shadow general?" Watanabe about one week from We last . oreign '.Viinister Sakurauchi e~We~. ~"fhat too is the year-end to the first part of is a member of the Nakasone ~me as with yoa" Jaauary~ Fukuda left Tokyo faction. Finance Minister $efox calling on Nakasone, and rested in ~ 11[iyazaki Watanabe belonged tormerly to Finance Minlster Watanabe Prefecture. One year ago ~t had the Nakasone faction but left it visited the Mejiro� residence ot beea the same. It Tanaka over a ditference oC attitudes tormer Prime Miaister Kakuei represented "movement," then t o w a r d t h e 0 h i r a a d� Tanaka and expressed his New Fukuda showed "repose." It ministration. Nakasone was Year greetings to Tanaka. was certaialy a contrast. anti�Ohira while Watanabe Gathered at the Tanaka It is a t~ct that Nakasone ts supported Ohira. r e s t d e n c e w e r e m a n y aiming for the pctimkrship. Wataaabe tater tormed his politicfans ot the Tanaka fac� That is only natural, After the own group but then begen to tion. Speakfng to them. Sato administration, 'fo~u~ men have contact with Nakasone Watanabe said, "I ask toc yotu' - Tanaka, Fukuda, Ohira and again and nn Jan. 1 Watanabe coopetation," and raised a toast Mlki - vied for the premier- was one of the caUers at the tel[citating the tuture ot the sbip. All four have. swce Nakasone residence to express ~'anaka factton. become prime ministers. New Year greetings. ~nuence Of Taaaka At tirst Nakasone supported Hakasone smiled broadly as Tapaka. T'nis ubstructed the he welcomed Watanabe. This is It la sald that this year again. bicth of the Fukuda ad- because it was Eelt that for about 400 penons called to ministration and ?n t1~e next Watanabe, who is gaining express New Year greetings at general eiection, the votes cast - 19 FOR OF'FIC[AL USE ONLY . APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFFICIAL IJSE ONI.Y tor Nakasone showed a big drop Following the death of Ichiro (Nakasone is from tt~e same Kono, Nakasone succeeded to third electoral district of his faction. Nakasone is facing G u m m a P re f e c t u re a s difficulties as th~ boss of a ~'ukuda). faction. Not much time has When the first open ele~tion ot passed as yet after Komoto the party president was held, became a tactioa's boss. Fukuda, Ohira, Nai~asone and Theretore, the ocily boss ot Komoto were the candidates. established factions who has not Contrary to the earlier yet become the prime minister predlction, Ohira ranked first in is Nakasone. For that reason, it the preliminary voting. Fukuda is perhaps only natural that declined candidacy in We maia Nakasone ~s strongly desiring. election ( by Diet members the LDP presidency. affiliated with the Liberdl- For Nakasane. the attitude Democratic Party), with the takea by Watanabe, who Is resWt that Ohira became the gaining strength as a new - party president. Following the leader, is a matter of great birth of the Ohira ad- concern. ministration, Fukuda, Komoto When Watanabe called at and Nakasone became an anti� Nakasone's residence, mainstream existence. But in Nakasone steppQd torward the voting on the aonconfidence eagerly, bowed firsi ond motioa against the Ohira grasped Watanabe's band. This cabinet, Nakasone separated was an indication of Nakasone's '[rom Fukuda and Komoto and expectations being placed in = supported the Ohira ad- Watanabe. - ministration. It is questionable, however, Nakasone today Is thinking whether Watanabe will take that receiving the backing of politica! action in exactly the the Tanaka influence will open way desired by Nakasone. This the path to the pre .,iership. His is clear from the fact that policy is therefon~ to cooperate Watanabe visited the Tanaka . with ihe Suzuki aaministration residence [irst on New Year's that the Tanaka taction is D a y b e f o r e c a i l i n g o n supporting. Naka~one. ~ COPYRIGHT: MAINICHI DAILY NEWS 1982 CSO: 4120/128 20 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 FOR OFFICIAL USE ONLY POLITICAL AND SOCIOLOGICAL IDITURIAL ON ADMINISTRATIVE REFORM Tokyo MAINICHI DAILY NEWS in En~lish 11 Jan 82 p 2 � (Text] The Second Ad Hoc Council on Administrative Reform is scheduled to submit its interim report this - month and a basie recomrnendation in June or ~July, - and Prime Minister Zenko Suzuki will face the cruCiaJ moment whea he must give full play to his leadership. - The prime minister has often declared that he has been staking his political career on administrative reform. In thls regard, we hope that he will demon- strate his ``unfalCering posture" to tackle the issue. In reality~ however, we are disappointed with him as he - has been lukewarm toward the realization of the council's first recommendation during the past year. Even Chairman Toshiwo Doko and other members of , - the councu expressed their dissatisfaction: It seems that the prime minister betrayed the expectations of. the nation. Prime Mini~ter Suzuki submitted a package bill calling far reforms, but he had simply picked up tbase items in the recommendation that might encounter least resistance from the bureaucrats and other pressure groups. Many vested interests were lett untouched. The proposed cut in government subsidies was insufiicient. In the compilation of the 1982 fiscal ~ budget, he also tailed to trim the budge~s related to agriculture and torestry. It is thus small wonder that Chairman Doko declared he was greatly dissatisfied with the out- come. The government ltself was reluctant to carry out a scale-dQwn, while attempting to increase ~evenues in an easygoing ma~ner. Th~ essence of administrative retorm Is for the govecnment to trim its overly eacpanded size. This the government - neglected completely, No matter how splendid the recommendation may be, the retorm will make little headway unless � the government Is determined to carry it out. All depends on the determination oi the prime minister. _ In the tirst place, th~e prime minister should not 21 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R004500030012-0 FOR nEFICIAL USE ONLY mix administrative reform with tiscal retorms. The - prime minister contends that the adminlstrative and , fiscal reforms are like both sides of a coin. It may be so as a matter cf consequence, but Ehe two problems are originally on different planes. Administrative reform should not be subsidiar}~ to fiscal reform. Th~ primaxy purpose of administrative retorm i~ to realize a�`simplified, effective" gover~ment by paring the fat off the administration to meet ad- ~iiinistrative demands in the new age. As a matter of consequence, it may lead to fiscal reconstruction, but that is not the final aim. An opinion is prevalent in some quarters that administrative reform tends to invite repression. Such a voice is heard even within the government circles, but the Suzuki cabinet should overcome such a negative view since the realization of a small - government by administrative reforms Is the only _ way for the govermnent to meet the expectations of the people. Thoroughgoing review of government spending is the unanimous call of the people now suffering from an increased burden of taxes ~nd public utilities rates. � - The prime minister should also pay all-out respect to the recommendations of the council. So far he has capitalized on the recommendatioas to cover the shortcomings of the administration. He ~as shown a posture as if fie were willing to delegate part of his authority to the council, but It turned out to be a mere gesture,.an empty stance. This is nothing more than the negligence ot political duties on the part oi the _ prime minister. We must call on the prime minister to redouble his efforts in smashing the uncooperative attitude ~f bureaucrats toward administrative reform. He must overcome the re~istance of interest groups. The ~ administrative reforms of the. past failed simply because they ~vere watered down before being sub- mitted to the Diet, largely due to the uncooperative attitudes of the bureaucrats. In order not to repeat the same fcnistake, the prime minister is urged to demonstrate strong leadership thrnugh his cabinet ministers. Now that he has repeatedly promised the nation, we believe that not only his leadership but his own cabinet is at stake. Any half ineasure. designed to postpone the execution of reforms will only speed up the collapse of the government. It is regrettable to note that the nation is losing interest in reform. The prime minister should be held � ~ solely responsible tor this. - COPYRIGHT: MAINICHI DAILY NEWS 1982 CSO: 4120/135 22 . FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R440500030012-0 NOR OFEIC'IAI. USF. ONLY POLITICAL AND SOCIOLOGICAL FOREIGN MINISTER WARNS STAFF TO PREPARE FOR 'ROUGH.WEATHER' Tokyo Ti~ DAILY YOMIURI in English 10 Jan 82 p 2 [Article by Minoru Hirano] [TextJ l~oreign Minister 3akurauchl noted in hls take. New Year address to the F'oreign Miaistry The Foreign Ministry's. conclusion is that staS on January 4 that Japan was blessed 1982 will be an even more unatable and with Sne weather on the flrst three days uncertain year than 1981. oi January, that he wlshed tYse world's Quite a few schoIars warn that in such weather would stay just as flne this year; an internatiunal cllmate, Japan should not but that this was unlikely to happen. FIe sing the pralses oY peace and chortle its thus wamed the ataS to t~e prepared ior se~i-conSdence to the rest of the world, rough weather. that Japan !s earning loreign Srowns for � Sakurauchi's warning was pertlnent. The its excessive emphasis on economic muscle, dc~eatic situation Sn lapan is peaceful that Japan should. not forget that the US' and tranquil. The Japanese think they are and Western Europe's concern over 3oviet - living in the most peaceful country on military strength and the inatability in earth and ara the happlest people in the the Middle East !a behind the trade tric- world. They were sllghtly uneasy g~out tion between Japan and Westem countrles, their future at the outset of the 1980s. and that 1982 will be a year when Japan's Now they are conSdent of the future be- isolation lrom the rest o! the world will cause they helieve Japan will be able to b~come prominent. lead the r,est ot the world in such frontier Aware of such a probablUty, the Jap- technologies as electronics, robotics and anese Ciovemment inereased defense biotechnology. Most Japanese newspapers spending in the 8sea1 198Z budget by 7.75 in their New Year supplements featured percent over the preceding year to show ind'ustria.l roaots, and this is symbolic o! Japan's willingness to periorm its defense the future of Japan. Optimism in Japan role within the Western camp. US Se~- has expanded further as the specter oi retary o! 9tate Alexander Haig and Sec- OPEC's dominance over the world was laid retarq n! Defense Casper Weinberger im- to rest and oll prices have begun to de- mediatelq addressed letters to the Jap- cllne. anese C3overnment saying that they highly What is the actual international situa- appreciated the Japanese step. - tlon surrounding Japan? The Japanese C~overnment also hoped to The Foreign 1VIInistry sizes up the situa- allay trade friction through increased de- tion as follows: fenae spending because the US has com- � All problems requiring qulck solutions, Plalned that Japan, by iree-ridlnP the such as the Soviet occupation ot Af- Japan-U3 security treaty and spendi~ig too ghanlstan, the Iran-Iraq War attd the ~ittle for delense, was making large sur- Kampuchea problem. have been brought pluses in its trade with the U3. forward, unsettled, lnto the New Year. ' However, US Ambassador to Japan Mike � The enTorcement o! martial luw in Po- Mansfleld crushec~ this hope on January tund and Israel's annexation oi the 8 when he made a distinction tsetween the C3olan Helghts have intensifled tensions in defense problem Qnd the trade issue, sa, - Europe and the Mlddle East. ing that the cause of trade friction be- ~ Because of these re~ionai disputes, it is tween Japan and the US and Japan and dlfHcult to predict what c~~~rse the U3- Weatern Europe was in the closed charac- Soviet nuclear arms reduction talks will ter of the Japanese h~arket. 23 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OF~'ICIAL US~ ONL~ Criticlsm oi Japan by the US and West- ern Europe i~ alao dlrected against the fact Lhat ,japan depends on exports rather than domestic demand to spur its eco- nomic growth. In the government budget - tor 8sca1 1982, a reduction o! interest is the only step aimed at stimulating do- mestic demand whlle both Sscal policy and the tax system are to perform the roles of dampening domestic demand. - Then, trade friction between Japan and Western countries will eacalate in 1982. Forelgn Vice-Minister Ryoao Sunobe pre- dicts a violent storm. _ COPYRIGHT: THE DAILY YOMIURI 1982 - CSO: 4120/I35 24 FOR OFFIC[AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 - M(DR OFFICIAL l1SE ONLY MILITARY SECURITY PANEL APPROV'ES JOINT DEFENSE STUDY Tokyo MAINICHI DATLY NEWS in IIzglish 9 Jan 82 p 1 ~ ~Te~~ Another milestone was set in Japan-U.S. defense cooperation Friday. 'I'he 18th Japan-U.S~ S~curity ConsuYtati~e Committee (SCC) agreed to begin a joint study on defense cooperation in ca~es ~f emergency in~ the Far East ou~tside Japan. The joint study was proposed remai~inB su6jeat was defense closely to the U.S. in the field of - in the guidelines for Japan-U.S. cooperation in cases of defense. defense cooperation, which emergetlcy In the Far East, The government already has were adopted at the previous notably, the Kor~an Pentnsula. announced a sharp 7.75 percent meeting of the SCC_ held in Friday's meeting, held at the increase in defense speading for November 1978. Foreign Ministry, was par-. fiscal 1982 and is elated by With Friday's agreement, the ticipated in by Admiral Robert appraisals comiag from two parties will start working Long, commander of the U.S. Washington. within one month on joint Forces, Pacific, U.S. Am- The indications are that the defense scenarios, taking into bassador to Japan Mike joint study on Far East consideration existing con- ~Jtaastield and other U.S. of- emergencies and the sharp stitutional restraints and ticials. increase in defense spending related damestic laws. The Japanese delegation was will be hot issues at the Diet The SCC is the tiighest con- led by Yoshio Sakurauchi, which reopens later this month sultative organ on the operatlon foreign minister, and Soichiro after the a?inter recess. of the Japan-U.S. Security Ito, director general of the At tde ontset ot We meeting, Treaty which went into force In Def~nse Agency. the two parties exchaaged lg6p ~ By most accounts, however, it �~ews ao international affaiirs, Japan's contribution in an is an agreemeat that creates notably, the situation ia Asia. - emergency would mostly con- questions, it presupposes a Admira! Long stated North - cern logistics - supply, trans- more active Japanese rnle in Korea has advantages over the ~ portation and communication. joint defense and the chances of South in every aspect of A4ore importantly, however, it Japan being drawn tnto a war military power. coWd also involve pmviding would be far greater. But South Korea is politically - Seli-Defense Force bases tor It woWd also run counter to stable and if It is combined with the U.S. armed torces. ~ ' the Japanese Constitution, a tirm American commitment The Japan-U.S. detense which does~not a11ow Japan to and steady defense buildup, a guidelines also called for take action in collective military conflict on the Korean studies on actions to be taken in security. ~ Peninsula is unlikely, he said. case of a direct attack oa Japan However, the Suzuki gov- Both Long and Ambassador and measures to deter ernment, which wants to ease Mansfleld stressed attention aggression. ~ the trade friction with the must be focused on the Soviet The studles were completed United States, has apparently capability in evaluating Soviet tast year, and the only decided to align itself more might because inteation could 25 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR nFFICIAI, l~tiE ONI.ti' change overnight. the government is nuw working - Foreign Minister � Yoshio hard formulating principles for Sakurauchi said the Soviets are technological transfer. faced with a number of serious 141ajor General Moore, chief problems; the economy, of staff, U.S. Forces, Japan, minorities, Afghanistan, and later told the press at the U.S. Poland. Embassy in Tokyo: "We But despite tbese difficulties, betieve we should naturally be combat ready now, completely Sakurauchi said, the Soviets are ready. We believe that the steadily expanding their government of Japan and - defense capabilities and the p~ple of Japan perceive that - West must keep.a close eye on there isa basic need. We would them. like to see this happen as soon ~ He also said the South Korean as possible based on what we economic si!;:~tion is quite bad perceive to be a definite threat and Japan is willing to make as that has to be met. large an economic contribution ~�If they cJapanese) deter- as possible based on the prin- mine there's got to be a drama- ciples ot ecoaomic cooperatioa tic change or rapid buildup, we While highly appraising the should be prepared to assist substantial increase in defense them. We should also be patient spending for fiscal 1982, the enough to know in fheir Americans stressed that the democracy that it takes time. momentum should be c~rried in ~~~,ye would like to see a more defense spending, defense successful capability, suc- cooperation, and technological cessful ia combat tomorrow. cooperation. We know it's going to take But the Japanese side Ionger than that and we're re[rained from making a firm going to work closely with them commitment to the transfer of in a projective see military teck~nology to the ~ey are ready to meet their L'nited States. Soichiro Ito, responsibility k~ the country director general of the Detense ~d our responsibility to our Agency told the Americans that allies." COPYRIGHT: MAINICHI DAILY NEWS 1982 ~ CSO: 4120/135 26 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 FOR OFFICIAI, USE ONLY MILITARY EFFECTS OF INCREASED DEFENSE SPENDING ON ECONOMY VIEWED Tokyo MAINICHI DAILY NEWS in English 10 Jan 82 p 2 [EditorialJ - [Text~ We have noticed the emergence of a dangerou~a - sign in Japanese economic cireles. Yoshihiro Inayama, president of the Federation ot Economlc Organizations (Keidanren) and three other top business leaders have told a joint press contereuce that national defens~ and social welfare must be treated as two different things, and als~ tbat the defense expenditures in the fiscal i982 budget draft are reasonable. . In the statements of these business leaders, we noticed a generous chorus of support for an expanded defense capab%lity. At the same time, we als~~ kriow that not a small number of bpsinessmen, es~,ecially those in the service industry, are opposed~ to the defense expansion. But the staEements at tne press confer�.^.c� to have exposed ~n !~~!~~.rcur*ent among business leaders who have become, tol~rable toward mildtary expansion after the repeated American requests for a bigger Japanese- role in this specific field. We regard this as a dangerous sig~n because we doubt that military expansinn and civilian vitality or economic development can coexist. In the postwar days, Japan gchieved the highest economic growth rate in the worid. It has been regarded as a model in this respe~t because of its light military outlag under the war-renouncing Constitution. This has also been proven by historical fact when we compare Japan with the United States. In short, among the democratic nations, the productivity of Japan, whose military burden was light compared with its gross national product (GNP), has been exceptionally high while the productivity of the United States, the super military ~ 27 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 FOR OFFICIAL USE ONLY p~~ver, has been the lowest. - Japan's defense outlay remains less than one . percent of its GNP and the total production of the - defense industry is also less than one percent of the total industrial output. Accordingly, economic circles still remain optimistic that the vitality of the Japanese economy and economic developmeat would not be hampered by the militarization of the economy. Japanese economic circles believe that civilian vitality must be maintained and that the free economic system must be protected. We believe that the business leaders must bear the responsibility of thinking about the future of the Japanese economy from a long-range viewpoint. COPYRIGHT: MAINICHI DAILY NEWS 1982 CSO: 4120/135 28 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 - FOR OFFICIAL USE ONLY ECONOMIC U.S.-JAPAN PERCEPTION GAPS, TRADE IMBALANCE PROBLEMS DISCUSSED Tokoy JAPAN ECONOMIC JOURNAL in English Vol 20, No 988, 12 Jan, Vol 20, No 989, 19 Jan 82 pp 19, 24 [T~ao-part article by Aritoahi Soe3ima: "U. S.-Japan Perception Gaps and Trade Imbalance Problems (1)"] [12 Jan 82 pp 24, 19] [Text ] After nearly 32 years af serv- The 18 years trom 1985 unGl major portion of the latter haff = ice with the Japanese Govern- my retirement saw Japan's M my public llfe in promoting ment I retired from public life transfor~nation lnto the rank of the liberallzation and restruc- last October. In retroepect, a an "induaMulized country" turinB of the JApanese econoMy history of my � public service under the IMF-GATT system: as well as developing measures could be viewed as the ~twar 3apan's GNP gi~ew at an us~- to provide loans and credits to history of the Japanese eco- precedented rate through the third world aad ioter- ~m , active importation d foTeign national organizations. During the first 15 years, capital and technology as well ~ ThrouBhout these years ~ I - from 1950 to 1965, Japan was as perpetuaY efforts to elevate have personally witnessed the internationally ranked as a our indusMel structure and to strength of tt~e Japanese people developing country. The coun- expand our exports. and their adaptability to try was trying to rise from the With the objective of achiev- changEng external cir- ~ damages of the war. Aspiring ing an economy with features cumstances. I took gre~t prlde to a standard d living compar- slmilar to those characterizing in being Japanese. able to that ot the Western the economy oi otber Western Candidly apeaking, when I countries, all of the Japanese countriea and in order to fulfill returned from military eervice � people worked exhaustively. international reaponsibilities ag to a totally destroyed Tokyo 38 Fortuna.tely, those were the an indusWalized natian, su~ years ago, I had grave doubts years when a free trade policy stantial liberalizet!~ measures ~~~w Japan could survive, of the Western countries were taken end structural ~et alone, achieve today's prevailed under the GATT-IMF upgrading aE the economy took affluence which was beyond - system, from which Japan place. anyone's imaginakion. greatly benefitted. This hiatory d the past-war However, hiatory changes the During this period, the Japa- Japanese economy r:oincidea people, the country, and the nese Government was able to Wi~ my history at the Miniutry world. With half of the popula- adopt a protectionist policy of Finance. The ficst 15 years at tion now being tt~?e past-war which was legitimately ac- my work were basically generation, there are few Japa- ~�urded to the developing couo- ~voted to the procurement a~ nese who know that Japan was lries. In order to protect funds from the~ IMF/World labeled as a"developing couo- domestic industries from for- gank or from the capital mar- try~~ untii only 1S years ago and eign competition, both trade kets of the industrialized coucr that overseas sightseeing and foreign exchange trat~sac- ~ Japan was chronically travel, for instance, was then ti~ns were subject to strict rnn- 8~p~qg from a shortage d~ohibited. This lack of knowl- trol. forei~ exchange. But I spent a edge about the rapidl.y chanaed 29 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-04850R000500030012-0 F/)R OFFII'iAl. UtiE ONI.Y - e.~:onomy ot Japan also applies ~t ~ increasingly competitive U.S. must he pcevented, to Westerners. Many foreigners Japanese industries. There are especially if perception gaps do not realize that Japan had a some who are familiar with develop attributable to such a "develc~ping country" statas Japan and express their con- move. until 15 years ago and simply cern over the present situation, It may be useful to briefly r~. assume that we have always but they are generally less view the changing relative enjoyed the same kind of living ~a~~, " positions of the U.S. and Japa- standard that they have long image of Japan, which is nese economies in the past 30 had. I fepl that the major per- so distant from what Japan years. At the risk of over- ception gap between the U.S. really is, began to emerge. simplification, I would like to and Japan is based up on this W~t worried me mast was the point out the following four point. fact that the misperception of features: Experlences in the U.S. Japan was strengthening in the 1. The gap between the U.S. American political circle. and Japanese economies Twice I h:ive had occasions to ~is concern led me to per- narrowed tremendously. live in the U.S.: for six years sonally visit all 50 states to While the per capita income from 1962 W 1968 and again for ~ecture and to exchange views ~ of the U.S. was 11 times that two years from 1979 to 1881. I Wi~ ~e American people at d Japen in 1850, it ia a mere personally witnessed ' during large. I also contributed to uni- 1.2 times today. these two periocls how su~ Ve~~ty magazines published by 2. Japan's bilateral trade stantially the American per- Harvarc~, Yale, etc., to balance with the U.S., which ception of Japan has changed. eradicate the American mis- showed chronic deficits in When I first went to live in perceptions of Japan. the 1950s beBan to yield America in 1962, the U.S. was However, the U.S. is a large stable surpluses begitminB still a global giant and Japan a ~~n~.y. As a federal nation, in the mid-196os. small Far Eastern nation. individual states t~ave _ more 3. WMIe the U.S. economy Hardly any news of Japan was autonomous strength tl~an o?u' showed stcength throu~out ever seriously treated in the efectures. the 1950s and until the mi~ mass media then. When there ~~rge businesses also have 60s, intlation seems to have was a write-up on Japan, the an enormously strong influence been built into the economy tone was warm, as thou8h an since the Vietnam war. The adult were observing a good on political and economic deci- ~o~~Y ~an to falter and child. Needless to say, a knowl- sion makers. Unfortunately, i~ ~ormance has been edge of Japan by average ~o~d~ �'iticiam of Japan ~rticularly po.or in the last Americans was then virtually expressed by a iew large three years. The GNP - nil. Only the few who had spent American enterprises cap in' oW~ rate dr ped to fluence blic opnion or Coo- ~ �p post-war occupation years in ~ minus 0.1 in 1980, the infla- Japan as soldiers or a handful ~'~smen af certain statea, who ~on rete has been double of people acquainted with in turn can affect the entire ~g~~~ and the productivity Japan had a rather pto-Jepa- U.S. public opicrion. Witnessing gi,oW~ ra~ hae been nega- such political processea at work nese sentiment then. tive sitlce 1978. with my own cyea is a very - But the second time I went to f~~~,8~ eXpa.~en~e 4. The Jepanese economy live in Washington in 1979, the H~yeve~,, wth must persiat, showed remarkable growth American perception of Japan t~. Aegardless ot how lo~ it ~rWBh~t the past-war had changed ~'eatly. The may take and what difficult Yeers. Ww~e it stagnated Americans no longer Veated efforts may be required, it ia ~~r ~e first oil criais, it Japan as a child but regarded ~r r~~ibility to correct the has bcen growing atably us as their equal. News and misperception ot Japan held by since 1975. _ write-ups a6out Japan a~ many Americans. It is d para- peared almost daily in U.S. Factors for bilateral newspapers. The tone of the mWnt importance for ~e roblems articles also changed from stability of the world that the p positive to neutral to negative. U.S. and Japan - the 1arBest Some af the notable pheno- At the same time, the Amer- and ~e second largest eco- mena resulting from the strong icans began to know more ~m1es of the free world - Japanese economy and con- , about Japan, although differing de~e~op mutual understanding. trastingly stagnant U.S. eco- in degree by states and som~ particularly wocTisome Ie the nomy are aa followe: what ':nfluenced by negative or ?mPact that U.S. protectiotdsm 1,Phe hl~ee, rat~ d y~;n the critical voices of American W~~d have on the world eco- foreign exchange macket business ip'oups which had last nomy. Such a te�ndency towaM 2 Expanding Japenese trade protectionism on the part of the surpluaes with the U.S. 30 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFFICIAI. USE ONLY 3. lncreased Japene~e inveetr eware ot the cruelul lmpoct- ment in the U.S. ance of trade. Perhaps the I would like to confine my followl~ phenanena underllne discussion to the problem af the ~8 BW~~ ~ deapite our increasing and perpetual Japa- ~~~y p�~' ~~nguage ap~ nese surplus. titute, the Japanese study for- Trade is so cruciaUy vital for Qign languages very dillgently; the Japanese economy. The ~r ~ding canpanies always only means of survival for among the mat popular Japan, with a population af career choice of students; moet nearly 12o million and withaut Japanese enterprises are any meaningful natural strongly motivated to export - resource endowment, is to their products; the Japanese. import raw materials, process tend to preEer toreign-made them and export manufactured goods (although most Amer= products abroad. It showe a icans perceive ua contracily). stark contrast with the U.S. which has abandunt resources _ and a large domestic market that have made export markets rather peripheral in impor~ ance, at least ia the condcience of most Americana, until recently. Virtually every Japat~ is [19 Jan 82 pp 24, 19] ~ - [ Text ] The Japanese have started invest in training their staff for be over 100,000 Japanese busi- from literally zet'o at the end of overseas business. nessmen living in the U.S. = World War II. K~�wing that The second notable feature,~f ~Y� The number must ex- � survival of the Japanese eco- Japanese firms is their ~eager- ~d .the total businessmen nomy was only attainable ~8 to secure t~esoutces. F`or ~'om the EC living in America. through trade, both the private Japan which relies for mast of Moreover, in 1956, the year i and public sectors of Japan its natural resource needs on first went to the U.S., Japanese attached priority to training forei~ supplies, securance af .products were synonymous their staff, securance d raw resources is crucial. This ex- with "cheap but of poor materials and exports of manu- plains why initia} Japanese for- quality." The reputation Japa- factured goods. eign investments in Southeast nese products enjoy today The first priority was to send ps~a, the Middle East, Aus- reflects the ccystalizaPlon af the younger people abroad to study tralia, the U.S, and Canada painiul efforts every Japanese and receive trairung. Mast Were approved even in the days has made with many tcials and Japanese organizations started of scarce foreign exchange errors as well as financial this system immediately after reserves. The actent to which losses over the past few the war, which was by no the 1971 U.S. embargo of agi~i- decadea. means an easily manageable cultural products to Japan as Developing a new foreign task under the limited eco- WQ~J ~~,}~e 1973 oil crisia put the market requirea a tremendous n~mic strength of Japan in entire country into a state af inveatment af, both finahcial thase days. panic describes out total and human resources. I have lYot only large firms but vir- ~~ndence upon imports. witneased meny inatanc~s tually all entrepreneurs who Thircily, Japanese firms have wl~ere enterpcises felt too arc interested in toreign trade made impressive efforts to ~feated to continue and left have maintained this system of ~~.elop ^.xport markets. When sending their staff abroad. The the country which they had ~I was an economic advisor in a decided to enter. On the other [act that a large proportion of W~t African country some 15 Japanese students in American years ago, I was astonished to ~nd, however, I also know of graduate schools are sent by meet a re resentative of an many firms which are~success- - their employers indicates the ~scure Japanese company ful abroad, only after having degree to which Japanese firms selling their praducts in the overcome many difficult ob~ remotest villages. There must stacles. 31 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 ~'!?R :)(~'f~'li'If.l, ll~}~: c~Nl.'Y' structioi~s ~Penta-Ocean~, interest rates up and the yen by mar~y Americans. Anc! that odd~ and ends among the slightly down and all. In is the closed nature of the mar- machineries tTsubakimoto Kabutocho's new dialectic ket. Cfiain), and a wide assort- tsince last year) that was While I think the Japanese ment of scattered others problem of very complicated ~onomy is as open as many ~:~hose anly characteristic in distribution chaYi~r.:'s :n Japan. European economies with the common was t:~e~; 11ai~~ layers of i:~tern;ediaries, sole exception of West Ger- = manipulalion by many ad including trading companies many, I do admit that frequent- hoc task forces ot corporate and wholesalers, exist between ly mentioned import inspection treasurers, financial institu- producers and consumers. But P~'~~ures, medical inspection tion fund managers, "in- it is a unique feature af the procedures, auto inspection vestment consuitants," and Japanese market whicli has systems are too complicated by securities salesmen operat- been developed against a com- ~ny international standard. ing with large discretionary pletely isolated historical back- Fortunately, the U.S. accounts. Par for the ground. These are faets of life Government recently came up course, in other words. in the Japanese society which W~~ a 9-item specific proposal A segment of the non- are not intended to dis- for Japsn to imprave imports, ferr~us metals rates special criminate exclusively against one cavering tariff reductiop on comment. Sumitomo Metal foreigners. 29 products an~ the other eight Mining, plaything o[ old Admittedly, mastering the relating to NTBs. Many at' C:inzo Korekawa, came alive Japar~ese language is next to these items are rather con- again as nostrils flared over impossible for many for- ~ncing. While I don't think full the rich gold seam it's cigners. The best alternative to acceptance of the propasat will supposed to be digging up overcome that handicap fs to aubstantially impc~ove U.S. ex- down around Kagashima. select and train promising ports to Japan, we must do On 3 of the 4 trading days it Japanese nationals tor their what we can immediately in accounted for 10 per cent of management. view of today's masaive trade " ~ total first section volume, The one encouraging trend is imbalance. and on Tuesday that and 2 that many American tirms are W}y~t I would like to stress others cMitsui Metals, increasingly promoting Japa- ~re, bwever, is that I don't Mitsubishi Meials) absorbed nese to their top managerial any measure taken by the no less than 38 per cent. In positions. The more successful Japanese side alone can solve Mitsui's case the incentive, an American company is in ~e bilateral trade imbelaace. boiled down to its essentials, Japan, the more adapted they In ~e first place, it is not was that it owns a gold mine are to the Japanese saciety and even appropriate to discuss in Kagoshima right next the more Japanese staft they bilateral trade s~trpluses or - door to Sumitomo's. In this ~nd to have. deficits. Half of Japan's im- - and almast all other cases, jdeas for alleviation Por~ ~ Petroleum. In order to interest in the new faces pay for the oil, Japan must arose primarily becauae Ever since the Tokyo Raund earn foreign exchange els~ their margin balances and of negotiatio~~s started, JApan's w~re. Moreover, our invisible share prices were relatively b~~~ral trade surplus with the trade account has been yielding ~ low; the search [or respect- U.S, has been a serious issue large deficits. In order to ~ able rationales followed, Wi~ ~e U.S. Government. In- promote foreign assistance and with results ot varying ~ed, the increasing surplus investment, Japan must earn degrees of believability. At must be irritaGng to many surplus in its trade balance. bottom it was that simple: Americans. Excellent management of the Kabutocho is not a I, for one, however, who was Ja~nese economy has been sophisticated miliev. iirvolved with the Tokyo Round envied by many countries. All this was of course a o[ negotiations and served as ~y~t must be noted here is that continuation uf the flavor the Financial Minister to the it is the efforts made by enter- shown so far this year - and U.S., am not completely con- ~ises as well as the sense ot' the last quarter of 19R1 too, ~nced that American com- ~~~s~bility aad discipline af for thal matter; it's just that P~aints are always valid. Part i~~vidual labor in this country _ the speculation became of the reason I am not con- that ahould be admired. more blatant and the funda- ~~r.ced is that the complaints ~,y~~ We to leave the situa- menfal figleaves ~amaller. It are often based on the outdated tion ea it is, Japan's surplus is arose because forei~ers ~mage, or the misperception as ~~~nd to accrue even more. It were still largely absent, ~scribed earliet, of Japan held Wlll further exacerbate the what wilh U.S. short-term American public opinion, and if 32 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OF'FI('IA1. USH: ONLY the worst com~s to the worst, it tion industry, petroleum Japanese firms to produce in can invite a situation where the indusUy, service industry, to ; the U.S. protectionist tendency cannot name a few. I ara among the b. U.S. export of the Ales- be prevented in the U.S. The very first to pay the highest kan oi1 to Japan. U.S. Administration has been respect to the enormouA c. More export of U.S. coal consistent in defending free potentials of the U.S. toJapan. trade and fighting protection- economy and believe that it d. Moce entry into Japan af ism. However, the check and can revitalize if only enough the tertial sector industries. balance mechanism in the U.S. resolutions are mtide. e. Ik is easential to coor- Government gives an enormous c. When I lived in the U.S., I dinate both economic and power to the U,S. Congress. did find many products in monetary policieb of both - Then how should the im- ~erica which would be suc- countriea. Discusaion of one = balance problem be alleviated? cessful in Japan if only they without the other leads us to I would like to give personal cauld be tailored to the Japa- simply go around in a circle. thoughts below: nese taste. The point here, The , imbalance problem again, is the efforts to be Concludlon ought ta be solved not by ~ade by American firme to pg an official of the Japsne~e voluntary export restric- develop export markets Government with preasing re- (there waa no Japanese who s~lbilides, I etressed the tions of the Japanese com- pr.~~cted 10 yean ago that ~ panies but through increas- McDonalde would be eo ~uc- ab�ve pointa at every occaeion ed U.S. exporta to Japan. cessful in Japan.> I had over the past two yeara. I a. Both the U.S. and Japa- 2. Japan muat pureue an or- ~0 e~~ ~t ~ reaaon nese Governmenta ,must ~y ~t $ome of the joint ventures have reco~?ize that voluntary ex- forget that a ~udden u~ ~n BL1CCEdBEtII was because port restrictions are not eurge tn export~ (no matter ~e Japaneee counterp~arts helping either country. The ~ how popular a certain pcod~ showed competence in past voluntaty restrictiong o~ uc! may be) ie dlsruptive aseuming reapona1bi11tlee, steel or TV seta proved tbe ~and can trigger domeetic indicating that a ioint venture point. The ongoing auto case roblems in im ortin f~~~ m~ is likewise to end in a similar p p g Eor Amerlcan firme to enter countries. This ia easential, into the Japanese market. result: if Japan wants to maintain I have recently accepted the b. The U.S. should bring to a free trade. After all, the ~sj~~y of a joint venture halt the dama~ng built-in gi~eatest beneficiary of tree firm end Z am nuw in a labo- infletion and restore a trade is Japan. ratocy tube to pcove that my strong America. America 3. As the long-term solution, I argument is cort~ect. I am con- has the fundamental can recommend, among fldent that no m~tter how small strength. Advanced tech- others: oar undertaking may be, by nology which landed men on a. Further pcomotlon of making thia venture a success, the moon or operated the I can contribute to the eradtca- space shuttle is simply awe- tion of U.S.-Japen ecanomic some: There are many other friction, a large part of wtrich competitive industries; the ariaea from the perception gap. aircraft industry, informa- lEndotBeMes) COI'YRIGHT: 1982, The Nihon Keizai Shimbun, Inc. CSO: 4120/130 33 ~ FOR OFFICIAL USE ONI.Y APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 FOR UFFICIAI. U5E ONLY ECONOMIC FEW U.S. MAKERS TAKE FART IN NTT PROCUREMENT BIDDINGS Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 988, 12 Jan 82 p 9 [Text] More than a year has for "Track II" which applies not appear very eager to passed since Japan agreed to mainline communications Qarticipate in the biddings. with the United States in equipment already available But this does not mean that December, 1980 to open pro~ in the market and utilized by they are not interested. Dur- - curement of Nippon Tel~ NTT with some modifica� ing the past year, about 240 ~,traph and Telephone Public tions. The remaining eight inquiries have been made to . Corp. equipment to interna- items are for "Track IiI" NTT trom foreign firms and tional bidding. N`IT has kept which is applied to key parts gover�unents about procure- ~ its word during this period ot mainline communications ment pracedures. But when and, upon President Hisashi equipment and calls for joint it comes to actual biddings, Shinto's stern instructio~, research by N'[T and pri� there ace many cases that implemented ita, tlvee~track vate tirms f~.>r eventual NTT foreign [irms' general procurement procedures, ~e equipment under "Track I" . thereby opening up its ~~~~Track I" category, dces not meet speciiicatiorB market more speedily than bidding has been completed ot NTT. ' scheduled. [or 28 items out of the 81 For example, Hewlett� But the U.S. Government ~~ling ~F 7.4 billion in Packard Co. of the U.S. was and Cangress, trustrated value, and distlibuted very eaBer to sell its mea- over the country's t15 billion among 41 tirms. Nine tor- suring equipment but did not trade deficit with Japan, e~gn firms have won tenders participate in a bidding be- still complain that N'I'T's tor eight items, including re~ tatLSe the company's pcod- ope~ door policy is not suffi- search equipmenl~ :otaling uct did not match N'fT cient. Their frustration is il- ~~~0 miUion: tt~ey are seven specifications: Hewlett- lustrated by the propased pmerican and one Dutch Packard ~es "inch"�unit amendment to the com- tirms. screws tor its products, municatior?s act, pending in So far, 22 f irms have ao- wheareas NTT specifica- Congress, to exclude [oreign plied to participate in bid- , tions call for "millimeter"- (irms from the U.S. com- ~ng for nine items under unit ~raducts. On the sur- munications equipment ~~Track Il" and "Track III", tace~ the difference between market. in which only one foreign "inch" and "millimeter" The items NTT has opened tirm, Motorola Inc. of the does not matter much, but it to international bidding U,g,~ pert in a bidding can make a supplier to give have reached 90 since ihe tor automobile telephone up participation in a tender, agreement with the U.S. equipment. NT'C's expecta- as actually happened. - took etfect. 9t these, el ere tions that more foreign Secondly, when it comes categorized tor "Track I" W~~~ ~ke part in bid- to the procurement ot main- which applies to g~eneral ~ngs ha,ve, up until now, not line cotnmumcations equip~ equipment and are procured come true. ment under "'Frack Il" and through competitive bid- fact remains �'Track III," the interna- ding. One item is classilied that contrary to NTT's ex- tional standard becomes a pectations, [oreign [irms do - 34 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 ~ hUR OFF1C'IA1. USF: ANLY \TT�c Procurenient from Foreign Firms ~lem Company rurrN Maqnetlc lepe for informalion processin0 Sum11pm0 ]M. Gnham Maqn~Nc Int. Lowpressur~CVO .......Aavancea Semiconductor MatKials' Grophlc Desiqn Syslem (11 CALMA Co. Grephic Desipn SVStem Appliton Inc. Profecfiun mask allipnment sysfem The Perkin Elm~r Corp. Computer sYStem Dipil~l EQuipment Multi diroclional tomoqraphy system � PhiliDf' MaqnetrOnspultersystlm ..................WrianAssOtislff, Inc. mooted point. NTT procures On the othec hand, a products which follow clase- spokesman for NTT said. ly the standard set up by the "The problem oE speciGca- Consultative Committee for tions will be resolved with ~ [nter:?ational Tele~hon� and time. But since this is a Telegraph (CCITT), but competitive bidding, we U.S. Eirms, like Western cannot buy products it the - Electric, do not care much prices are too high. That is, about such standard. Con- when foreign [irms cannot sequently, products of tor- win biddings because oE ~ eign tirms do not get into their high prices, the pro~ even procurement biddings. lem will be more com- - NTT officials said those plicated than beEore." U.S. tirms are somcwhat ar- NTT ~s planning to rogant in their *easoning list more products tor that since their products are international biddings and well accepted in the. U.S., ~Ve all their equipment NTT should accept them ac- piaced under such bidding cording to U.S. standards. by December,1982. But even An increasing number at aEter their proriucts are open foreign firms have visited to tree competition, NTT the NTT head office in W~~~ s~fer trom (resh prob~ Tokyo to sell their products, Iems in case toreign tirms twt President Shinto told Wi~~ fail in one bidding atter them, "If you like to sell to another because oI high NTT, you shouid change w.~~,~, U~ess the funda- - your products suited to me~~~ ~sue ot trade tric- specifications-ot NTT. With- tions with the U.S. and Eu- out such efforts, you just rope are solved, the NTT cannot blame us Eor not P~~urement issue will al- opening up our market Ways ~ vulnerable to at- enough." tackstrom abcoad. COPYRIGHT: 198~, the Nihon Keizai Shimbun, Inc. CSO: 4120{124 35 FUR OFFICIAL USE ONLY r APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFF~CIAI. USE ONLY _ ECONOMIC MITI STUDIES WAYS TO HELP AILING U.S. AUTO PRODUCER Tokyo JAPAN ECONUMIC JOURNAL in English Vol 20, No 989, 19 Jan 82 pp 1, ~F [ Te:c t ] In compliance with a request MITI's planned help boils stocks as collateral. made by 'the U.S. Government, down essentially to two points: MITI fe~ls that having Exim the Ministry of International 1) how to assist the U.S. com�� bank and Mitsubishi Motors Trade & Industry has buckled pany financially, and 2) how to cooperate in such financing will ~ down to study concretely what increase its competitiveness as se: ve to help Chrysler recover sort of financial assistance, io- to sales in th~ American auto the credibility it has lost from cluding financing by the Ex- market. private finaneial organs within - port-lmport Bank of Japan, As to the first point, MITI is the U.S. might be offered as cooperation considering ~ the passibility of However, as to buying back lo help rehabilitate Chrysler having Exim bank extend Chrysler's stocks of 14itsubishi Corp., now staggering in a tinancing, such as a bank loan Motors, it needs to be noted - serious business crisis. or supplier's credit. Informanis that the U.S. automaker turned The assistance steps being said that extension ~f supplier's dowa such a proposal when it wei~hed by MITI are said to credit appeared to be the most was made by the,~apanese auto include the following: promising as it could be applied producer at the end of 1880. c~~~nin~ a way for the F.xim most ~readily in the event In autumn, last yeac, there bank ~to extend help to lhe Mitsubishi Motors exports also was ~a reverse case af ailing U.S. automaker through body and mechanical com- Chrysler ' asking Mitsubishi Mitsubishi Motors Corp., which ponents to Chrysler. Motors to buy back :ts stocks is tic~d up with Chrysler. In such a case, Mitsubishi but then quickly retrae:ing its -Inducing Mitsubishi Motors Motors will shoulder the for- proposal. to buy back its shares now held eign exchange risk, but tF~e As for Mitsubishi Motors, one by Chrysler or of:ering the Government can back it up ot its top men said that if the latter financing with the shares from the fact that it will be able scale of the financial help was taken as collateral. to apply the export insurance small, it would not go very far -Having Mitsubishi Motors system to the financing as it in promoting Chrysler's undertake joint prodnction of will involve the Exim bank. rehabilitation, and from such nEw mcxlels or further step up Another influential way for thinkinB, the company was not technicAl cooperation for aiding Chrysler !s regarded inclined aeQively on its part in restoring Chrysler's competi- to get Mitsubishi Motors to buy such a case to take up the tiveness within the U.S. back its shares in Chtysler's problem. _ MITI hopes that if such steps possession, or 15 per cent of the On'the other hand, Mitsubishi are realized, this will amount to total, at the prevailing price Bank, the main ban7c of the .lapan shouldering the Reagan within a scope of bekween Japanese automaker, said it Administration's additional 5~~~.~ million, or having the was obvious thet it cauld not - debl guarantee oi the U.S. ~apat~ese automaker extend ignore any possibility ot Chry- aulomaker, and helping Chry- relief funds to Chrysler with the sler collapsing arld it would be sler regaining its teel will serve ready to study ttte~ problem if to prevenl a rekindling of the ~k~� Japan-U.S. trade friction over Japan's auto exports. ~ 36 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 FOR OFFICIAL USE ONL1' t'rtridc~nt 'Cuiuio Kubu ut Mitsubi5hi Motors said that as a ~ general problem, his company = was not against helping the U.S. _ firm, but that it wished to deter- mine~ its altitude' tow~rd the ~~11�, .n ; n.:, matter only after receiving a concrete request from Chrysler. _ It was possible, as a part af technical cooperation, to con- sider having Chrysler under- take license production of A1itsubishi Motors' cars, but the priority now was for Chrysler itself to rationalize its production setup and smoothly carry out a cost down, he said. COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc. - CSO: 4120/131 37 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 ~h~1{ ~rr~4in~ uyN UN1,Y ECONOMIC DOMESTIC AUTO SALES LAST YEAR SHOWED DIP, EXCLUDING MIDGETS Tokyo JAPAN ~CONOMLC JUURNAL in English Vol 20, No 989, 19 Jan 82 p 7 [TextJ Sales of new automobiles, ex- ~ier Eo 3,897,200 units. cluding midget vehicles af less The 1981 re istraHons broke - than 550 cc, in Japan last year down into 2; O1,t56 passenger _ dropped below the year-earlier cars, u 0.8 per cent, 1,173,147 level for the second year in a wcks, down 9.7 per cent, and . row. The Japan Automobile ~~897 buses, down 2.1 percent. _ Dealers Association said that When midget vehicles are ih registrations of new passenger cluded, sales af new suta - cars, trucks and buses cof mobiles in the year totaled - more than 1,000 cc) in 1981 fell 5,127,009 units, up 2.2 per cent by 2.6 per cent f rom a year ear- trom 1980. 1)omestir tiales o( ~ew� Autos (excluding midget vehicles) in 1!Ittt b~� Maker - (Yrto~Yr cAan9e in �e in parenthexs) Oecember 19l1 - Maker Vassenqer car TrocM Bus Totel in 19l1 Tovole Motor . . . . . . . . . . . . . . . . . . . . V7.675 46.OB1 499 1.192.699 0.11 Nissen 01Mtor . 60,991 19,~VA 701 1,1~I,~17 2.s1 Mitsubishi Moton 17.lr8 l.911 2SA 727,SII (-10.!) ToYO KoDYO . . . . . . . . . . . . . 41.415 7,~V9 16 ~}1~?71(- 0.l1 Isu:u Morors 5,1~9 7.971 270 119d75 l- 9.E) MondeMOtor 46,610 1,790 - 117,W1+IZ.1) Oalnatsu Mofor . . . . . . ~~MS l.~t/ - 71,516 (-7T.11 Fufi Heavv lndustries A~SO? 1,119 - S~.SSS 7.3) Mino Mofors 2,179 116 ]~,~12t-17.51 Nissan Diesel Motor - 1.17~ 7~ �f-S2.]) Suiuki Motor . . . . . . - 6 - Importedcars . . 7.]70 - - J1,110(-15.1) ~ COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc. CSO: 4120/131 38 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFFICIAL USE ONLY ECONOMIC FUJITSU TO CARRY OUT LARGE-SCALE CAPITAL INCREASE Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 989, 19 Jan 82 p 9 [Text] ' Fujitsu, Ltd., Japan's biggest Fujitsu's coming capital io- c�nmputer manufacturer, is go- crease will become its lhird as inK to c�~~rrv out a large capital to procuring funds. The amount inc�rea~c~ on a public subscri~ of its share issue will outstrip tion basis, with payment set for the 70 million by Toyota and the latter part of February. rank next to the 200 million It will involve a total of 80 share issuance by Toshiba. million shares - 50 million As to the capital increase on shares domestically and 30 bil- the ~uropean market, it aR lion shares in the form of Euro- pears that the oil-producing pean Depository Receipt. In- countries will secure a coo- - dications are that the money siderable amount of shares procured will reach nearly ~F 60 through Nikko Securities Co., million. which will act as lead manager In considering money, pro- of the capital increase ahare is- curement by means of capital suance. F increase, it stands to become a capital increase ranking next in scale to the Y 99 billion increase I~v Tovota Motor Co. in July, ~ lasl vear ~ind the Y81.6 million increase by Toshiba Corp. in ti~~ptembc~r of the same year. Eujitsu has been briskly building up its facilities, ceo- ~orin~ on semiconductors, and ii~ exp~~rt oP computers also have started to become con- spicuous I~~tely. Il is regarded tu havr dccidcd on a capilal in- crease in considering the need for [urth~~r strengthening i~ti financial position, such as for c~ompeling against Internation- ~il liu~iness Machines Corp. COPYRIGHT: 1982, the Nihon Ke~.zai Shimbun, Inc. CSO: 4120/131 39 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-44850R000500030012-0 FUR OMF'IC1AL U5E UNLY ECONOMIC TOYOTA, NISSAN TURN EFFORTS TO BOOSTING SMALL TRUCK EXPORTS Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 989, 19 Jan 82 p 11 [Text] ~ Toyota Motor Co. and Nissan levels between Febnt ry and Japan's exports of small Motor Co. have begun to step August ot last year, ~owever, trucks to the U.S. suffered a up their etforts to export small hecause ot a rise in export of heavy . blow at the end of trucks to the United Statea in small trucks~ total expoM to the August.1980 when the U.S. rais- order to make up for the de- ~S�e~be~a$~t~~=~ 8~ i= ~chs ickuf s from 4 c r cent to crease in the export of pas- Pt Y P Pe P P~ P~ senger cars to the country t~ cent over the correapoadin8 S per cent. As a result, sales of sultirtg from "voluntary re- month of 1980. This was the Japanese trucks in the U.S. straint" Japan started last first increase in eight montM market remained slugg~sh tot year. trom January, ot 1981. Further- the tirst half of 1981. Tha shift in export of small more, Nissan's export to the Beginning in the middle af h they turt~ed pickups has begun to take effect ~ a~~t~~ ~ u~~ e f~tct e~rbett~ aschigh~~~ as the total export of cars and trucks to the U.S. by Toyota record tor thai month, or up due to increased ta s no - and Nissan began to increase ~�3 Per cent from the corre longer constituted a negative last September and October, sponding month d the previo~ factor and aa sales eiforts, io- exceeding the level of the cor- Yeaz� cluding incentive' payments to ~ responding nnonth af the Fre Toyota also marked a 3.3 per dealers. has begun to. take vious year. cent increase in its export to effect. - Due to shipment curtailments the U.S. last September ~ On the basis of these develo~ adopted by Japanese auto- over the conespondinQ inonth ments. Japanese automakers makers, the export ot Toyota ~ 1~. the first increase in five stepped up their export drive in and Nissan to the U.S. had coo- months, and further auQmented smaA trucks to the U.S. in an tinued to be lower than the pre the export increase level to 8.8 effort to bring the total~ for vious year's level up to last Per cent in October aver the Ciscal 1981 to tho pr'evio~s AuKust corresponding month d 19~0. yeer's SOO,OOO le~'e1� = In the case of Nissan, the total number of cars and trucks exported to the U.S. continued lo i~c Inwer than year�earlicr COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc. - CSO: 4120/131 40 FOR OFFIC[AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFFICIAL USE ONLY ECONOMIC BRIEFS AUTO PARTS MISSION TO SPAIN--The Japan Auto Parts Industries Association is scheduled to send a mission to Spain next May to confer with its local counter- parts on how to cooperate with each other in the field of automotive parts and components. This will be a follow-up to similar miseions so far dispatched to South Korea and Canada to exchange information about parts business trends. In April, 1980, Spanish parts makers sent a fact-finding team to Japan to probe the "secret" of international competitiveness of Japan-built parts. Jaganese parts builders hope ta have more contact with Spain which is due to ~oin the Europe?r_ Communities in 1985. [Text] [Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 989, 19 Jan 82 p 8] [COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc.] NONTARIFF BARRIER REDUCTION--Prime Minister Zenko Suzuki wants to reduce or improve the number of non-tariff barriers cited by the U.S. to Japan--51 ~ instances--by over one half. Last week, he made this known at a meeting with : the ruling Liberal Democratic Party's three top executives and Masumi Esaki, chairman of the party's special study committee on international economic policy ' measures. The Prime Minister issued a directive to them that the Government and its party swif t1y should work together to draft concrete steps on the following ~ points: Reduce or improve over half of the cited non-tariff barriers; adjust views among the ministries and agencies concerned for reducing the number of items on the residual import restriction list; grant Western enterprises which have ~ entered Japan the same business opportunities and benefits accorded by their governments to Japanese enterprises in their country. In line with Suzuki's i instruction, the party's special study committee on international economic policy measures will have a meeting of its chairman and vice-chairman this week to work out a final plan nn the matter for presentation to the Prime Miniater. [Text] [Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 988, 12 Jan 82 p 1] [COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc.] TOYOTA AUTO PART IMPORTS--Toyota Motor Co. has announced a plan to procure ~26 billion worth of automotive parts and components in 1982 from ab road, 18.2 per cent more than an estimated ~�22 billion in 1981. The planned imports for this year will break down ~nto ~�15 billion worth of parts and ~�11 billion worth of supplies and equipment. The estimar~d imports in 1981, consisting of ~�13 billion worth of parts and ~�9 billion worth of supplies and equipment, represented a 37.5 per cent increase over the comparable imports in 1980. Of the 1981 imports, North American products accounted for ~�12 billion. Besides, Toyota's American - subsidiary, Toyota Motor Sales U.S.A., Inc., bought ~�28 billion worth of parts 41 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FUR OFFICIAL USE ONLY aua ~~aip~uc~ut:: truiu uaclvr. ~u~~ll~ra. '1'ti~ ~l28 billion tigure does not include the purchases made by Toyota's local dealerships and Toyota Motor Manufacturing U.S.A. engaged in production of truck cargo beds in Long Beach. A Toyota spokes- man said that the company's imports and purchases from U.S. producers last year accounted for a considerable share in the annual $300 million amount demanded by the U.S. for Japanese automakers to buy U.S.-made parts and components. [Text] [Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 988, 12 Jan 82 p 7] [COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc.] IRAQI VEHICLE PURCHASE--Toyota Motor Sales Co. and trader Sumitomo Corp. have won an order from the Iraq Im~ort Corporation to supply 36,000 automobiles in 1982. The vehicles ordered break down into 135,000 1-ton pickup trucks, 6,500 small buses, 4,500 four-wheel drive vehicles, 1,500 2-ton pickup trucks and 10,000 subcompact cars. Iraq suggested in October, 1980 that the country might suspend purchases from Toyota if the company tied up with Ford Mutor Co. listed as an anti-Arab enterprise by the Arab nations' Israel-boycotting committee. Toyota's sales talks with Iraq thus were stalled for some time in the first half of last year. But Iraq resumed ordering from Toyota in December to buy 15,000 subcompact cars following the announcement of the company in July that it gave up ' the joint car-making plan with Ford. Sources took the preceding and latest Iraqi orders as an indication that the moves of Arab na~ions to boycott Toyota cars have tapered off. Iraq placed orders for automobiles with foreign producers in August and September in usual years, but the prolonged Gulf War forced the coun- try to act slowly this time. [Text] [Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 988, 12 Jan 82 p 7] [CQPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc.] CSO: 4120/124 42 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFF'ICIAL USE ONLY , - SCIENCE AND TECHNOLOGY ~ INFORMATION PROCESSING, HITACHI TERMINAL SYSTEM DISCUSSED Tokyo HITACHI HYORON in,Japanese Aug 81 pp 1-4 (Article by Airoyuki Osako] [Text] In conjunction with quantitative growth and wider application of infor- mation processing systems, the terminal equipment or system has recently under- gone various changes. The terminal system, in other words, is assuming an important role in the area of information processing, permeating to every p~r't of institutions. This paper will discuss these trends along with Hitachi's product development, R&D philosophy and future trends in terms of technologies which support the realization of terminal systems consistent with such trends. I. Introduction According to statistics compiled by MITI in FY-80, Japanese production of digi- � tal electronic computer systems topped the remarkable 1-trillion-yen mark in FY-79. This is 1,000 times greater than the 1-billion-yen performance of FY-60. Among the increases, the proportion of terminal-related equipment, including communications control systems, grew as much as 25 percent in FY-79, in contrast to S.5 percent in 1965, when the "online system" was beginning to be commercial- ized. This indicates a 330-fold production growth in simple comparative terms. This ~rowth is largely due to liberalization of public telephone circuits and reduction in c~mmunications cost through utilization of the DDX (digital data exchange) network; however, the ma3or reason is the harmony between the reduc- tion in total cost of information processing, including communications costs due to the progress in semiconductor and magnetic memory technologies, and the devel- opment of software technologies including complex online system controls. Under these conditions, a significant recent trend in "network architec~ture" is the polarization between intelligent terminals, which are moving toward all-pur- pose and more sophisticated models, and terminals designed to exhaust their ;ipptication by limiting their usage to a certain degree. Tn coping with these market trends, Hitachi has developed and marketed terminal equipment with a wide range of applications. In this brief paper, however, I wo~ild like to report on the development of products, particularly those in the - front line of information processing, and the technological development support- ing each of these products. 43 , FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFFICIAL USE ONLY II. Changes in Market Needs and Data Processing Systems One characteristic of recent trends in information processing systems, in addi- tion to that of substantiating management control, is a strong demand for the system to function as a tool for upgrading working conditions and for providing full service to customers. Accordingly, we see many cases in which the appli- cation, control, and operation of a system are either partially or totally taken out of the hands of specialists and put into the hands of the final users. This tendency is particularly strong in regard to terminal equipment and terminal systems. This means that the circle of information processing systems has widened in terms of space, quality, and quantity. Here we can see the birth of factors contribut- ing to the realization of. such concepts as decentralized processing, network ar- chitecture, and codeless information processing. On the other hand, as seen in the cooperation among banks on matters of savings operations and their coterminal centers and as seen in the establishment of mutual communication "protocols" among chain stores and textile industries, data communications among different industries or plans for proznotion of such coopera- tion is being carried out. With respect to information processing systems that can deal with these market conditions, I provided details of decentralized processing and network architec- ture in the May issue of this ~ournal under the title, "Recent Trends in the ~ Decentralized Processing System."1 Here,I would like to make observations{:aainly from the standpoint of terminal equipment. 2.1 Meeting the Increase in the Volume of Information In terms of both space and time, the manner of presenting information handled through terminal equipment located in the vicinity of the source of information has expanded from the conventional coded style to a codeless style; the contents of presentation now include both fixed and nonfixed forms. Examples are infor- mation expressed in terms of images, Japanese language, voices and shapes. In comparison with fixed coded forms, such information requires a great deal of data before it can be presented. In order to proce~s a large amount of data efficiently within the time required, improvement in th~ speed of transmission can only go so far. Therefore, a method is needed to decentralize the processing as much as possible so that it can be handled locally. For efficient exchange of data between sites, such a system that usesthe coded information which has necessary aad sufficient data is neces- sary to recognize the information being exchanged. In order to accomplish this, both large capacity and high performance are required of either the terminal equipment or its control system. This is gradually becoming a possibility within an acceptable price range through the development of various technologies dis- cussed in section III. Examples of this are the various types of terminal equip- ment for the Japanese document information processing system, the shapL process-- _ ing system, and the document cantrol system. 44 FOR OFFICIAL USE ONL'Y APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFFIC[AL USE ONLY � 2.2 Meeting Diversified Uperational Needs The major requirements for the terminal equipment cited above are reduction in cost of the equipment itself and its operation, even greater adaptability to business, and easy handling. In order to meet these requ~rements, it is indig- pensable, while maintaining a low price, to diversify input-output methods, strengthen support software, and facilitate operation. More precisely, the following measures can be taken. In terms of input and operation, in addition to various keyboards and key sets for different usages, the OCR (optical character reading) hand reader and bar- code reader, both of which can directly read data from the source, can be con- nected, and the system which produces the necessary control codes through a one- touch operation (code key function) can be improved. Also, an input check by means of various displays and an operational guidance function are effective ways to improve the operation of the equipment. In programming the terminal equipment, adequate and simple language, and conver- sational programming that require~ minimal learning, are effective. Furthermore, program packages are being consolidated for standard operation. On the other hand, in con~unction with popularization and more sophisticated util- ization, increasing the system's overall rate of opf:ration is inevitable. In order to do this, its reliabiliry undoubtedly must be improved and consideration must be given to a backup system in ca~e of breakdowns. The role of the backup system for terminal equipment is to prevent bringing ordinary business operations to a halt, totally or temporarily, when the system including the backup breaks down. A design that will make this possible requires that it not only be suitable for operation of the entire system within a certain - tolerance range but r_hat it also be accomplished at minimal cost. In this respect, the system design based on the "store and forward" and "delayed online" methods has been rated higher than designs based on conventional inethods. - The popular decentralized processing system is considered an extension of this concept. 2.3 Consideration for System Environment In connection with the Popularization of data communications among various indus- tries, the use and support of public data communications networks, such as public circuits and DDX are now indispensable elements in terminal equipment. The same applies to data communications within a single industry that has accompanied the exPansion of DDX usable areas. On the other hand, coordination with the software that controls the enti~e system is critical, for unless various software assets, which require a great amount of development expense and time, are sufficiently utilized, the system cannot become - a useful tool. It is believed that software will control the information process- _ ing system increasingly in the future, and that its full utilization will lead to increasing the ~verall adaptability of the terminal equipment. 45 ~ FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFF'ICIAL USE ONLY Altiu, 1'rum thc at~in~lpuliit i~l mt~king the software s~tructure appllcable tu the systems environments as much As possible, stratification of the software struc- ture for the terminal equipment 3s being ~.:arr~ed out. This has been greatly influenced by the strata structure sy~tem based on the concept called network = architecture; however, this is a cechnology widely used as a means of comprehen- sively improving the efficiency in the changing, maintenance, and prodsction of software, even for terminal ea~lipcnent which is not directly subscribing to the software. In software which is developed on the basis of this concept, the functional definition of each st?-atum and the specification of the boundaries between strata are, in general, clearly unified. By combining existing modules that comply with the def inition and specifications, or newly developed modules if necessary, the software can easily support the system with a wide range of applications. ~ III. Technologies That Support Texminal Equipment The basic technologies invoived in terminal equipment are: printer, display, keyboard, electronics, data communicati~ns, mountings to make the equipment compact and light, handling of paper, and progra~ing. But what is important - is not that these basic technologies be used independently in making the equip- ment, but that they be comprehensively and systematically integrated to produce equipment which can then serve its purpose. For example, the "Automated Machine for Banks (ATM, CD Celler window equipment)," introduced in the special issue of this publication, materialized only when these technologies were brought together and the final product designed; it could be manufactured by combining individually existing functional units. Since the principal basic technologies have already been discussed in the special issue under "Printer Technology," "Display Tectu~ology," "Making Terminal Equip- ment Compact and Light," and "The Handling of Paper in the Printer Terminal," I want to summarize other technologies. 3.1 Use of Microprocessors To control ti~e operation of terminal equipment at a rate faster than or just as fast as the human senses can react, it is sufficient to use the consecutive con- trol of a micraprocessor. For example, in 30 ms, which is said to be the limit of the motion-recognition capacity of humans, a microprocessor with an average command execution time of 2 Us can handle 15 x 103 steps of command. Even if two-thirds of this, or 10 x 103 steps, is used exclusively for performing a program which becomes the overhead for simultaneous movement, it is possible, iL the operation moves at an average step number of 1 x 103, to control less ttian five functions simultaneously. Also, if higher performance is required, it is possible to install microproces- - sors specially adapted to each functional unit. Even with this arrangement, the cost ratio of the micraprocessor and its accessories to the total equipment is - not large, and an allowable cost-performance ratio can be obtained. 46 FOR OF'FICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 FOR OFFICIAL USE ONLY Un the other hand, specific microprocessors can be selected on the basis of the performances and functions required. For instance,for those which are used as single units and whose functions are relatively simple, such as printers, dis- plays, and keyboards, 4-8 bit microprocessors are often used. For equipment processing compound functions as a result of the combination of single units, 8-16 bit microprocessors can be used selecti~rely, either singly or in multiples, depending on the required functian and performance. - In view of the diversified functions of the terminal equipment, the use of micro- processors plays an important role. In conventional equipment, using "hard wired logic," changes in s~andard functions, the addition of different functions, and changes in performance distribution for various functions would be likely to necessitate modifications in the entire design of the equipment. However, equip- ment with microprocessor control can accommedate the required functional changes ~:,.~i additions in a relatively short time either through the manufacturer changing the program or thrcugh the user's prograimning. - In addition, we are stri.ving to improve the efficiEncy of progra~ning. To meet the sophistication i.n program language, the development of a"cross-compiler" by means of large models is in progress; this will supplement a decline in efficiency deriving from a lack of resources at the time of programming the microprocessor. 3.2 Mechatronics Technology Mechatronics technology refers to the fusion of inechanical engineering and elec- tronic engineering technologies. This technology owes a great deal to the utili- zation of microprocessors, as mentioned in section 3.1. Its results are seen clearJ.y in printers, keyboards, various inserters for printers, paper and plas- tic and transport mechanisms, and in various automatic cash processors for cash and for cash transactions. This technology applies electronics to a large part of the mechanical controls previously achieved by combining various mechanical functions. This simplifies the complex mechanical parts and the mechanism comprised of these parts. In addition to reducing the manufacturing cost and increasing reliability,�this technology provides diverse functions not carried out by conventional terminal equipment. For example, let us consider the serial print~r. A matrix printer with a print~- ing speed of 20 letters per second, TELETYPE model 37, for instance, was formerly composed of several thousand mechanical parts. As against this, the number of parts used in a"wire dot matrix printer" with a speed of 120-250 tetters per second is less than S00 at most. By con~.rolling the X and Y directions of the printing head and the print wires, it is now possible to handle various fonts, including Chinese characters, and print shapes, neither of which could be done by conventional printers. In comparison with previous printers, reliability has improved 20 times and manufacturing cost is dowr: by more than 80 percent. t3y us~ng mechatronics technology, similar improvements are being made to products previously based only on mechanical engineering technology. This makes it pos- s~ble to supply popular terminal equipment models where the installation and maintenance environment ;ire not always good. 47 FOR ORF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 - FOR OFFICIAL USE ONLY 3.3 Magnetic Memory Technology The appearance of 8-inch floppy disk equipment drew a line between conventional terminal equipment and new models, in that it added a filing function to the tenninal and ma3e exchange of information more efficient. With this as a turn- ing point, file equipment such as the S-inch floppy disk and the 5-inch and 8-inch hard disks was d~veloped. This improved the function and performance - of the terminal equipment. The floppy disk can be used widely as an internal filing device, but it also plays an important role as an information exchange medium. For this purpose, it is important that the information be handled by a memory system which has mutual convertibility; however, even though it is technologically possible to increase the memory capacity, the restrictions are great, so we cannot expect muc}i in terms of achieving greater capacity. Rather, it will contribute to ~ popularization of terminal equipment if it can be made smaller and consume less power. The 8-inch or S-inch hard disks can be effectively used to make the file device of the terminal faster and smaller and to increase its capacity. At present, the 8-inch disk has a capacity for 10-100M bytes, the 5-inch disk, for 5-20 _ bytes; the average access time is 30 ms and 80 ms, respectively. But these hard disks are most appropriate for terminal equipment because of their compactness and low power consumption. The power consumption during normal operation is 100 W for the 8-inch disk, 20 W for the 5-inch disk, which is one-fifth to one- twentieth of the consumption than that of the conventional 14-inch disk. The - lower power consumption was made possible by minimizing the friction created when a disk rotates and by improvements in high density m~nory technology which provide needed memory capacity and at the same time permit the reduction of the radius of the disk. To obtain greater capacity while maintaining the compact size, the disk equipment is so structured that the disk surface itself is fixed to the rotating axis of the equipment. When operating a terminal with file equipment, it is itnportant to consider a backup system to cover damage and file breakdowns caused by opera- tional error. For smaller capacity equipment, a floppy disk is more desirable; however, it is insufficient as a backup system for a f il.e whose capacity exceeds tens of inegabytes. n�loppy disk with 1 M byL-e requires tens of sheets, and the problem is the time required for backup operations rather than capacity. For tliis purpose, an open reel-type magnetic tape device was used in the p~st; _ however, its load is too great for the terminal equipment. Because of this, recently a magnetic cartridge has been attracting attention. This device, al- though there stiil remains the problem of canvertibility with conventional sys- tems, is compact and is expected to achieve a memory capacity of 10-40 M bytes. The magnetic bubble, which is theoretically different from the conventional mag- netic memory system, has advantages in terms of resistance to adverse environ- ment,particularly changes in temperature, a problem common to disk and tape equipment. The magnetic bubble tolerates temperatures from -10 to 70�C. But at present there are problems of capacity and cost, so it will take 2 to 3 years before it can be realized. 48 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFFICIAL USE ONLY 3.4 Utl~er 'reclinolugteti In connection with the above-mentioned utilization of microprocessors, the ' semiconductor technology for memory, LSI, and VLSI is important for terminal equipment. In particular, a move toward higher integration of the memory system is likely to become a factor in radically changing the economical dis- tribution of functions of the equipment. For example, in the Chinese character font, which is expressed by 24 x 24 bits, the character generator, which gener- ates approximately 8,000 characters of JIS's No 2 standard, requires a memory of about 5 M bits. To install this in a printer is impossible in terms of size and cost. Therefore, it is more practical to cor.sider it in ca~on use with - other equipment, install it within the file of the control mechanism, and design it so that the portions necessary for operation can be extracted onto the main memory device. But in the near future, when it is expected that a mask-type read only memory of 128 kilobits or 256 kilobits per chip will be developed, this character generator will appear with a 36-chip or 18-chip LSI, so that it can be built into the prinrer. This will contribute greatly to the performance of small-scale Chinese character systems. In con~unction with the popularization of inechatronics technology, the role of the power semiconductor must not be neglected. In this area, it will be possi- ble to use highly integrated units as a result of utilization of p~wer MOS (metal oxide semiconductor)-type FET (electric field efficiency transistor), which has - good control efficiency. Various input devices are needed for the terminal equipment. The operation of most conventional keyboards has switched from a mechanically driven system to electronics. In addition, new technologies such as keyset and CRT (cathode ray tube) touch-keys along with image sensor based image input, voice recognition, voice synthesizing, and voice output are being utilized in codeless devices. IV. Development of Terminal System The development of Hitachi's terminal system has been in the area of all-purpose terminals, specialized terminals for specif ic purposes, and custom-made terminals. For these terminals, Hitachi has been developing and strengthening a number of new products in the p:~st 1-2 years: these include the HSTAC T-560/20 video data sys- tem; HITAC L-320/30H and SOH terminal co~aputers; the HITAC T-550/30 decentralized OCR; HITAC T-5862, T-5866, T-5869 automatic cash transaction systems; and the HITAC T-580/10 parking terminal system. In addition, to the market trends and needs as mentioned in section II, Hitachi has developed new terminals by applying technologies discussed in section IIT. The basic devel.opmental concepts of these terminals are as follows: 1) Data Pr.ocessing in the vicinity of data source. 2) The ability to make inputs with least amount of change in the original form of data. 3) Easy operation even for nonspecialists. 4) Minimizing space, cost, and other factors in installing the terminal. 49 FOR OFFICIAL USE O1VLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 - FOR OF'FICIAL USE ONLY = 5) Maintaining maximum convertibility with different terminals so as to allow for maneuverability with future products or mixed operations with different terminals . 6) Maintaining interchangeable character sets and a code system for them. The development of new terminal equip~?ent in each of these areas of application is as follows . . 4.1 Chinese Characters and Japanese Language Processing Terminal For terminals which can be used exclusively for processing information in the ~ Japanese language, the following have been developed. - 1) HT-5217 Chinese Character Printer Terminal. This is a terminal for process- ing conversation, with English, numeral, and kana, the Japanese syllabary, inputs, and Chinese cha-acter output; the output device is a thermal printer. 2) BW-20 Japanese Word Processor. This has diverse input methods which can meet a wide range of demands; the output devices can be selected for various pur- poses, f rom matrix printing type to dot matrix type. In addition, in order to support the function of Japanese language processing - for all-purpose terminal equipment, share-load type and stand-alone type systems2 are available for the HITAC T-560/20 and the HITAe L-320/30H and 50H respectively. Since they can be used as they are for various functions of an all-purpose terminal, they can be applied to establish comprehensive office automation in the future. _ 4.2 Shape Processing Terminal As a full-scale shape processing system, the HITAC G-710 and HITAC G--7303 are available; furthermore, a shape processing function suitable for office process- ing has been added to the HITAC T-560/20. Thjs function is reinforced when backed by a printer which provides color displays and hard copies . 4.3 Terminals for Banking Institutions As a general teller c~evice the HT-5821 and HT-5822 have been backed up by Chinese character processing. The HT-5825 teller window device has been developed by retaining the functions of these models but reducing the size so that it can be used on the teller's desk. A"teller's cashier," which handles all currencies - and types can be connected to this equipment as well. In the area of automated equipment, HT-5862 automatic cash payment and HT-5866 and HT-5~369 automatic transaction equipment have been developed to meet a wide range r~f needs. These items of equipment are installed with new mechanisms, including "guidance" by CRT display and "" processing by a built-in floppy disk. In addition, consideration has been given to ad~ustments in terms of in- stallation, operation, and interphase, so that these items of equipment can pro- vide a unified system for all cash transactions. 50 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R004500030012-0 FOR 4FFICIAL USE SirILY 4.4 A1.1-I'urp~~e 'i'~rmin~l Equipm~~it For all-purpose terminal equipment, regarding c:hich the main objectives are low price and popularization, the following products are available. 1) HT-5101 Telephone Terminal. This is a multipurpose terminal for public cir- CL' CS whose data entry is diversified and which can be used as easily as a te:le- phone. 2) HT-5455 Display Terminal. This is a CRT display te minal whose functions and interphase are equivalent to those of the TELETYPE which is used exten- sively for TSS (time sharing system) and other convPrsation-processing systems and minicomputers. These terminals are available not only as standard equipment but they can also become a developmental base for individualized terminals for different businesses. In addition, custom-made systems, using the resources developed in con,junction with all-purpose systems such as the HITAC ?.-320/30H an3 T-560/20, are used in - various areas; they are highly rated for their operational convertibility and for their development within a short period of time. V. Future Terminal Systems Terminal systems are becoming popular and are being used in many areas; there are, however, many problems to be solved and new technologies to be developed in the future. Some of these are: 1) Popularization of t?igh-speed data transmission network using optical fiber. 2) Recognition and accumulation of image informa.tion. 3) Efficient processing of codeless information. 4) Making the system compact, lightweight, aru highly reliable. But more important than these problems as a future issue is the matter of secur- ity control. As the utilization of informa~ion processing systems expands, pre= cautions must be taken against crime anu secrrcy must be maintained. The demand w{.71 naturally arise for the addition of a function which can recognize lawful - operators from unlawful ones. In addition, the popularization of decentralized data ~rocessing will bring about decentral{zation of the files in the vicinity of the terminal equipment or its control system. The ma~ority of the security work in connection with a terminal system is related to thes e decentralized �iles. A great deal will depend on developments in software rather than hardware. ?~urtliermore, in order to achieve even greater popularization, it is necessary to develop portable high-performance tsrminal equipment. For this pur.pose, in ~ddition to compactness, light weight, and. low pawer consumption, it is important C.o make software into firmware. On the other hand, in terms of utilization of terminal equiprnent, the trend will ' still be toward polarization between all-purpose and specialized systems. 51 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034412-0 FOR OFFICIA,L USE ONLY From the standpoint of the former, realization of a multifunctional terminal must be worked out. This does not mean providing what is essentially single- funct~ion equipment with many applications, as in the case of conventional key- - board displays and keyboard printers; it means connecting the terminal with equipment with individualized functions such as OCR, various wand reader , [phonetic] and keysets, and providing the appropriate software for various needs. For example, the terminal OCR must be provided with functions in addition to those available to conventional OCR, such as OCR with keyboard data entry, - inquiry, and remote batch processing, and nuirerous other functions required when - the terminal is seen abstractly as a data input system, or functions that may em~rge from this. In supplying these functions, it is desirable to have the system perform as con- currently ~s possible those functions which can be realized by using resources which do not interfere with one another during simultaneous operations. Also, in the area of specialized terminals, it is believed that the populariza- tion of the "full-turn key system" which most meets the user's demand will be promoted even more. This trend will aid in establishing a bulk sales market, supported as it is by a preference for cooperation among industries, as repre- sented by the trend mentioned above of establishment of "protocols" common to different industries., A terminal system suitable for this would be a packaged product in which the advantages of both hardware and software have been incor- . porated to the maximum. It would seem inevitable to promote a system design based on special terminolo- gies and customs which are used in business daily, and to provide products by which mechanization will spread smoothly. VI. Conclusion I have approached the topic under discussion on the basis of existing products, those being developed, and existing and future technologies. On this and eight other articles in this special issue, I would appreciate it if the reader would provide us with critique and guidance concerning Hitachi~s product development discussed above. REFERENCES l. Ikeda, et al.: "Recent Trends in Decentralized Processing System," HITACHI HYORON, No 63, pp 297-302 (1981-5). ~ 2. Ito, et al.: "Development of HITAC L-320/30H and SOH Systems," HITACHI HYURON, No 63, pp 303-308 (1981-5). - 3. Hayakawa et al.: "CAD/CAM Systems in Manufacturing Business," HITACHI HYORON, No 61, pp 419-424 (1979-6). COPYRIGHT: 1981 Hitachi Hyoronsha 9711 CSO: 8129/0551 52 FOR OFF[C[AL USE .ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 ' ~ FOR OFFICIAL USE ONLY SCIENCE AND TECHNOLOGY NEC'S VICE PRESIDENT DISCUSSES HOW TO LESSEN SEMICONDUCTOR TRADE FRICTIONS Tokyo JAPAN ECONOMIC JOURNAL in English Vo 19, No 984, 8 Dec S1 pp 20, 15 [Text ] Nihon Keizai shimbun: What rate af "good products" against our producta at two-month-old is your ouclook for technologica! the total? is rapidly improving pricea and still remain tn competition between Japan and in the United States. If we competition L3Is are producfs the United States? remain smug about the victory whose prices can come down Ouchi: We may be ahead of the of Pearl iiarb6r, we may as yet 10-fold in a matter of-a-single Americans in mass praduction face another tragedy of Mid- year. If we reduce our prices, technologies of integrated cir- WaY� however, we ar~ liable to risk cuits. The Americans, however, The flnal outcome of the "LSI dumping charg~s and have our are by no means laggard`~n war" will not become clear ehipments etopped. We, ther~ high technologies as a whole. until about 1986 when the bona fore, have occasions to control We feared that Japanese fide VISIs-256-kilobit RAMs our exports to the U.S. market. makers' announcement that - made their debut. IBM is NKB: Which do you� think has they were going to mass plaughing back some ~300 a greater Gompetitiv~'edge in produce 64-kxlobit random billion RdcD futtds per~ annum patented technologies - Japan access memory (RAM) chips, into VISIs and other high tectr or the United StptesT the first-generation of very nology fields. Ouchi: Although Japan and the larg~scale Integrated Clrcuits NKS: Now wi!! the price war Utlited Stetes ace just about cVLSIs), would unduly provdce between ~apan and the Untted equally matehed in teeh- the Americans. We heaved a 5tatea jare? ~ nological etandards~ Japan is sigh of relief when we found Ouchi: The price of. a 84K paying more in patent that there is no great tech- RAM, which stood at about;]AO royalties. Our own company is - nological differences in this at the Gme of experimental mastly trading technologies - field between Japanese makers delivery a year ago, has now with U.S. firms on a mutual ex- and their U.S. counterparts. come down to only about E10 change basis. Some U.S. - The strong superiority of and is bound to decline further. patents, however, have be~n Japan's mass production tectr Price competition in the U.S. acquited by petroleum com- nologies primarily comes from market is certain to intensify. panies, and we naturally the fact that Japanese semi� The definite disadvantage for cannot obtain such patents on - conductor makers placed extra us in the fierce price war is the a cross-licensingbasis. We have emphasis on automatization of existence of the U.S. trade law. to pay cash for such patents afid their own domestic plants, According to the law, Japanese our payment excess in the while their Western counter- makers have to sell their prod- patent field will continue for p~~rts depended on Asian labor ucts in the U.S. market at the some time. for assembly work. The use of prices which prevailed in the Technologica] development is nutomatic assembly machines Japanese market two month breathtakingly swift in the field nol only givcs extra yuality and p~�eviously. The rationale is of semiconductora. Our own rcliability to the end products that U.S. diatributora will carry company is investing some ~ 40 but also help~ reduce produc- two months' inventories. `fhe billion in new equipment in the tion cost~5 by minimizing bad trouble is that we cannot sell current fiscal year. Equip~ products, ments are as good as new after Complacency on our part, three ~yeacs of use. We have to however, is totaliy un- scrap them, ,however, or we warrnnteci. The yield rate (the will lose out to our competitors. 53 FOR OFFIC[AL, USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFF1C'IA1. USE ONLY We, therefore, try to recover absolute superiority in the field build truly integrated semi- the invested amount in the first of ICs and computers etc. from conductor plants. This is the two years, turn a profit in the the national security point of reason we have to limit our third year and use the profit for view. It must be pointed out plant establishment in specified re-investment in newer clearly here that there is a con- areas in advanced countries. facilities. To use a metaphor, siderable difference between We are now actively advancing we are a i�unner in an endless production for the military and into the United States and marathon race. that for the civilian use� European countries, while such NKS: Aren't U.S. manuJac- Makers of military products U.S. companies as Texas turers having chest pains in are liable to take their con- Instruments and Motorola are their ruthtess marathon race tracts for granted. If makeTS of llow rapidly bolstering their ~with their Jupanese rivals7 civilian products sllow them- mapufacturing bases in Japan. ouchi: Independent U.S. semi- selves such a luxurious illusion If such mutual entries in each conductor makers having only and take it easy, they w'11 other's ~ountry inerease, it will several hundred workers on immediately lase their clients. greatly help reduce trade fria their payrolls are beginning to If U.S. makers, which have tions, as no one can pin down have management troubles, it long depended on military the blame on any single party. is true, and they are putting production, really want to NKS: Will technologtcal themselves up for sale. Our make themselves stronger, transfer thrive7 own company has purchased they should try to shed their Ouchi: Some say that estaf} Electronic Arrays Inc., a protectionist armor. lishment of wholly-owned specialist semiconductor NKS: The Americans are plants will not promote tech- manufacturer in the Silicon claiming that Japaneae aemi� nological transfer. I do not Valley, while Siemens of West conductor makers are ahutting agcee with this opinion. TeCh- Germany has acquired another out U.S. products a8 they are nological transfer can be s e m i c o n d u c t o r m a k e r, concurrently engaged in pro� gteatly speeded up by plant Advanced Micro Devices, Inc. duction of comput�rs.. . entries. When we bought at Philips of the Netherlands, on Ouchi: The claim is simply uit qmerican company, we invited ' the other hand, has bought into founded. As there are many S~ne of the company's eo- Signetics, while Schlumberger, thousands of ICs with different ~neers to Japan and trained _ an oil prospecting company oi properties, it is aimply u~co- t~em at our Kyushu~ plank France, has purchased Fair� nomical to engage in produo- Several of the Americans since child. tion of all of them. American were taken over by other U.S. NKS: The Americans are manufacturers boast oi u~r ~mpanies as quality control criticizing as unjair Go~ern- rivalled competitive edge in experts. We are now. planninB nii~nt subsidies and research many ICs. I belleve that Texas. ~t~liah a plant in Scotland unions etc. Japanese manufac- Instruments Japan Ltd., a and reeruit h1uldTeds uf et1- turers are enjoying.. . wholly-owned subsidiary of ~~~rs in the host cou~ry. Quchi: There are moves in the Texas Instruments Inc., know ~me of such local engineers United States for the Federal much more about our comy ~ certain to move to other Government to guarantee loans Pa~Y's computer sales than our after working with to semiconductor manufactw- company's semiconductor divf- ~.for a while. Such movements ers - a welcome development. sion. will greatly promote teclr European governments are NKS: Do you think that Japan iqlogical tranafer in hoet coun~ already providing subsidies to and the United States wtlt be tries. LSI makers "following Japads able ~to eliminate trade fric- W~~nn r~ le~fieldlofptughl~teetr example. In the United States, tions. the Department of Defense is Ouchi: I think that e3tablistr nologies. As technological axtending a helping hand in ment of manufacturing plants developmeat is exceptionally development of very high- in each other's markets will go brisk in the Seld, even sli~t _ speed ICs, called VHSI, a long way to tone down fric- delays in c~clsion-making in What we fear most is the : ise tions. The trouble is that we e9uipment investmec~ts etc. of p~otectionism in the United cannot simply establish our will lead to disastrous end For States. We are strongly o~r plants just anywhere. For such quick ciecision, we have to posed to the protectionist belief production of such sophisti- be lndependent when we go to among the Americans that the cated commodities as semicoo- o~~' and establlsh United States should have ductors, we need a pretty high manufacturing plants. Some of industrial basis. Ii we cannot the technicians we recrult and buy special gases and chemical nain oere oareecertacoun m 6e etc. nearby, we won't be able to 54 FOR OFFiCIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFFICIAL USE ONLY promoting technological trans- fer. We may suffer a bit from such development, it is true, but not much as we are certain to develop new technologies and commodities on our own The source of all evils is to try - to adamantly protect one's own technoiogies. COPYRIGHT: i9a1, The Nihon Keizai Shimbun, Inc. CSO: 4120/129 55 FOR OFFICIAL USE ONL~f APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFFICIAL USE 4NLY SCIENCE AND TECHNOLOGY ORGANIZATION OF DAIKYO OIL COMPANY VIEWED - Tokyo NIHON KEIZAI in Japanese 21 Dec 81 p 8 [Text] "Suspend, at any rate, the manufacturing of steel plates for crude oil tanks." This was the directive given ihe procurement department by President Yoshiro Nakayama (67) at the beginning of June, this year. The project for the construction of a crude oil depot with a capacity of 800,000 kiloliters in a zone contiguous *o the Yokkaichi Oil Refinery had already been started, with a . ceremony of purifying the building site held in April. J~ist after the end of the consecutive holidays in May, however, shipments of products fell to an abnormally low level. Also, the yen rate on the foreign exchange market was falling at an increasing tempo. So, it taas necessary for the company to study, for some time, whether it should continue this pro~ect as scheduled. Liaison Conference of Executives Is Theater for Free Discussion The liaison conference of executives, which conference is held on the morning of every Tuesday, became a theater of fierce controversies for some time there- after. The subjects of controversies were such as whether the present decline in demand is only temporary and what prospect it is possible to establish for the demand for crud~ oil tanks in the country as a whole in the future. In the ~ meantime, the downward trend of the yen rate made unexpected progress, to reach the level of ~�230 to $1 in the end. Crude oil prices, which must be paid in yen, rose drastically and the deficit in the company's account swelled rapidly. "All plans for the construction of depots should be frozen, with the exception of liquefied petroleum gas (LPG) tanks." This was the final decision made by President Nakayama in early August, after deliberations at the meeting of execu- tive directors (held in the afternoon of every Tuesday). Although resistance was offefed by those concerned with the work of construction in the field, it was dangerous for the company to invest a sum of ~�%0 billion in total in con- struction pro~ects under the circumstances prevailing at that time. Fortunately, the manufacturing of steel plates for tanks had been suspended just before enter- ing the process of rolling. So, it was necessary for the company to pay only - several hundred million yen to the construction enterprises concerned in compen- sation for the freezing of the construction projects. The president does not attend the liaison conference of executives, so that "the participants can speak as they like" (President Naka~'ama). This conference, which is presided over by Vice President Hiroto Sumiyoshi (59), is a theater 56 FOR OFFICIAL USE ONL~' APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 - FOR OF'FIC[AL USE ONLY for the exchange of information concerning the details of everyday business and discussions on various problems including tihe strategy of the company. On the morning of every Thursday, a"tea party" is held with the participation of Chairman Hirotaka Mitsuda (74), President Nakayama, Vice President Sumiyoshi and Managing Director Satoshi Kobayashi (60), who has jurisdiction over the technological field. This party, too, does not take up any specific problems for discussion. It can be seen, therefore, that free discussions are held at two different stages, to provide a"lubricant" for this company. However, the dominant view is that it is President Nakayama who is the most effective "lubricant" for the company. President Nakayama is a man of open- hearted character, as can be seen from therepresentative.view that he is a man who "can hold heart-to-heart talks with everybody" (Chairman Mitsuda). Because of such a character, both those within the company and outsiders are favorably disposed toward him. He has an established reputation as a man who controls his special agents most firmly in oil industry circles. Within the Petroleum Association of Japan, too, he has become an important candidate for the chairmanship on every occasion of - change of the chairman, because his ability as mediator is appreciated within this organization whose members harbor "different speculations." Also, Chairman Mitsuda turned over the post of president, in which he had served for a little more than 15 years, to Nakayama, because he placed expectation on such an ability of Nakayama. The four members of the "tea party" are assisted by eight executive directors. There is the impression that this company has too many executive directors for its scale. The reason is that President Nakayama decided to "clarify the loca- tion of responsibility in every department." With Executive Director Keizo Suemasa (60), who is in charge of planning, at the top, the company has such executive directors as Shigeo Homma (62) who is director of the Yokkaichi Oil Refinery, Koichi Tsutsumishita (56) who is in charge of supply and transportation, Takaaki Makino (58) who is in charge of procurement, calculation control and environmental problems, Katsuji Saito (54) wh oi.s in charge of crude oil and youngest of all executive directors, Hiroshi Harayama (55) who is in charge o� general and personnel affairs, Shota Kikuchi (58) who has the exclusive jurisdiction over the f ield of business, and Hisashi 'I'anaka (59) who is in charge of accounting. Cxchange Between Groups of Part-Time Executives The executive staff is characterized by the existence of six part-time direc- tors. In late June this year, Daikyo Oil offered the post of part-time direc- tor to four executives of Asia Oil (head office: Tokyo; President: Ryutaro Hasegawa; capital: ~�7,50(~ million), including President Hasegawa (72). An ex- change of personnel took place between the two because Daikyo Oil established its control over Asia Oil by ~ts acquisition of 48.7 percent of the total shares of t}iis oil company. ~ 57 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFFICIAL USE ONLY 1~;~ { kv.~ U i l sc�ut t~~ l:i U l.l, 'l'akri::i~ l~;r K i Caudti (bU) (now a part-tiwc dlr~clur) , wtio was the senior executive director at that time and who had a reputation as a top theorist within the company, and Tatsuji Takanashi (53) (now a - director) who was the director in charge of technology. These two executives of Daikyo Oil took the post of managing director and that of director, respec- tively, in Asia Oil. At the same time, five executives of Daikyo Oil--Mitsuda, Nakayama Sumiyoshi, Tsutsumishita, and Kikuchi--became part-time directors of Asia Oil. Especially, Kitsuda took charge of demand and supply (production plans and distribution of products), which can be regarded as a key department for any oil campany, to serve as a bridge between the two oil companies. It may be unnatural, in the light of the logic of capital, that an exchange of executive personnel is carried out, on a nearly equal footing, between two com- panies, one of which isvirtually in control of the management of the other. This step was taken, however, from the standpoint that "the two companies should unite together, as early as possible, to form a group in the true meaning of the word, instead of making use of their own strength" (President Nakayama). About 6 months have passed since the exchange of executive personnel was started, and this exchange has begun to produce such an effact as follows: "The special quality of the business information from Daikyo Oil, which is the seller of crude oil, and that of the technological information from Asia Oil, which is a refining enterprise, have begun to be connected together" (Vice President Sumiyoshi). The biggest purpose of Daikyo Oil's acquisition of 48.7 percent of the total shares of Asia Oil at the request of Mitsubishi Chemical ~ndustries was to im- prove the efficiency of the refining department. Daikyo Oil has only one oil - refinery (Yokkaichi), but Asia 011 has three (Hakodate, Yokohama, and Sakaide), including those of its subsidiaries. Moreover, Asia Oil has facilities to handle crude oil of inferior quality, including the apparatus for direct desul- furization, while the Yokkaichi Oil Refinery handles mainly gasoline and other kinds of light crude oil. Besides, it was attractive for Daikyo Oil that Asia Oil maintained a long-term crude oil supp~.y contract with Mobil Oil. It is dif�icult for any one oil refinery to improve its production efficiency independently beyond a certain limit. Also, the weight of heavy oil in Japan's crude oil imports has been increasing, year by year. The f irst purpose of Daikyo Oil's acquisition of Asia Oil shares was to break such a stalemate. With tlie transfer oE shares, Asia Oil deserted the group led by Kyodo Oil. In late September this year,however, Asia Oil concluded with Kyodo Oil a contract, - whereby "the delivery ofproducts will continue as before for 5 years to come." ~ llaikyo Oil, too, emphasizes that "We do not intend to increase our market share unnecessarily" (Preside~tt Nakayama). 'fhe market share of Daikyo Oil is 5.7 percent (recorded in 1980), but the share of the Daikyo group in regard to ref ining capacity is 8.25 percent. So, the so-called reverse refining-sales gap is about 2.5 points. Daikyo Oil, there- fore, will be burdened with excessive facilities for a long time to come, even if it makes effective efforts for the combined operation of crude oil tankers and the proper distribution of refining work. 58 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFFICIAI. USE ONLY Even under the 3-year management plan (1982 through 1984) which is in the making at present, "It must be expected that demand will remain rather stationary - throughout the 3 years" (Executive Director Suemasa). Excessive co~npetition for the expansion of sales will only increase the blow already dealt this company by the losses amounting to ~28.8 billion, which losses were recorded on the occasion of the interim settlement of accounts as of the end of September. Sumiyoshi Is Likely To Take Next PresidE.zcy If we want to foresee the future of the Daikyo group, we must keep watch on the � Japan Industrial Bank, which is the ma~or bank connected with Daikyo Oil. At one time, Daikyo Oil had three executives hailing from this bank. At present, how~ver, only Chairman Mitsuda and Vice President Sumiyoshi are the executives who came from this bank. The Industrial Bank played a leading role in Daikyo Oil's acquisition of Asia Oil shares. It also served as an intermediary in the establishment of business tie-up between Daikyo Oil and Fu31 Kosan, which tie- up has produced such effects as unification of asphalt sales departments since 1979. These past circumstances provide an important foundation for the prevailing view that Daikyo Oil is the eye of the movea for the reorganization of oil in- dustry circles. At this time when the necessity of reorganization of oil indus�- try circles is advocated, not a few people think that it is a matter of time that the Industrial Bank and Daikyo Oil will r_ake a new step to strengthen the Daikyo group. With consideration for such a possibility, it is proper to think that the next presidency will go to Sumiyoshi. Conditions for Being President President Yoshiro Nakayama says as follows: An ordi~ary person is desirable for the post of president. It is very good to have a president who belongs to ~ the elite. However, a person with strong elite consciousness is not acceptable. It is important for the president to ~oin the members of his company and wall~: together with them. The post of president is not an honor at all. It is a try- ing post. This post must be buttressed by the trust of the members of the company in their president. There is no reason to think that the president can win the trust of Che members of his company, without assimilation with their feeling. "Nevertheless, the primary mission of the president is to display leadership. I think that it is most desirable for the president to make decisions, on the basis of future prospects and the present situation combined together at such a ratio as seven to three. Any person, who is induced to make immediate gains, must be qualified as president. Especially in oil industry circles, where the circumstances concerning crude oil and foreign exchange are changing too rapidLy, it is most terrible to lose sight of the general situation." Daikyo Oil Number of Executives: 25 (including two auditors). 59 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-04850R000500030012-0 - FOR OFFICIAL USE ONLY Average Age of Executives: 3 are gr:iduates of Tokyo Univeraity; 2--Tokyo Institute of Technology; 2--Hitotsubashi University; 3--other national uni- versities; 3--Waseda University; 4--other private universities; 4--higher technological and commercial schools; and 4--other schools. Terms of Off ice Held by Presidents: Ei~i Saito--3 years and 3 months; Masao Takahsshi--17 years and 1 month; Hirotaka Mitsuda--15 years and 7 m~nths; and Yoshiro Nakayama--from August, 1975 to the present. Remuneration for Executives: Regular payments--~�228 million, and bonuses-- ~30 million. ' Annual Income for President: ~�35,040,000 (according to his final income tax return for 1980) . COPYRIGHT: Nihon Keizai Shimbunsha 1981 CSO: 4106/38 60 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFFICIAL USE ONLY SCIENCE AND TECHNOLOGY COAL IMPORTS FROM SOVIET UNION DELAYED Tokyo YOMIURI SHIMBUN in Japanese 25 Dec 81 p 9 [TextJ It became certain on the 24th that coking coal exports from the Soviet Union to Japan for the current fiscal year will be far below the annual tonnage of the 1 million tons which the Soviet Union guarantees. This is because the coal received from April through November was 545,000 tons, which tonnage is only half of the target quantity. Consequently, a Japanese steel industry source says that "We cannot expect additional receipt, henceforth, either." The S~viet Union has promised to export 1 million tons as collateral for the bank loan provided by Japari in connection with the development of South Yakut coal mines. Because the matter is incorporated in the Government-to-Government ~ agreement between Japan and the Soviet Union, it seems that this sharp decrease will leave problems in the future. . I It is viewed that the sudden decrease in the shipment of Soviet coal to Japan I has been affected by the fact that the Soviet production of coal has not neces- i sarily been smooth and that the annua~ supply of 10 million tons of Polish coal to be shipped to the Soviet Union has almost stopped due to the unstable politi- cal situation in Poland. Soviet coal exports to Japan increased approximately to 2.5 million tons per year during the peak period of S or 6 years ago. However, exports have been on the gradual decrease since then. Nevertheless, 1.74 million tons and 1.85 mi2lion tons of coal were exported to Japan during fiscal 1979 and fiscal 1980, respec- tively. Thus, the Soviet Union maintained a fairly good level, being a supplier after the United States, Australia and Canada. However, the situation completely changed during the current fiscal year, as Soviet coal exports to Japan sharply dropped. Negotiations for the current f is- - cal year on Soviet coal exports to Japan between the steel industry and the Soviet Union were delayed more greatly than usual. They reached an agreement finally in early September. The contents of the agreement are that (1) Shipments from April through December will be from 700,000 tons to 750,000 tons (including quantities carried forward from the previous year), and (2) consultations will be held once again as to shipments from January through March, next year. Thus, the Soviet Union was to strive for .the aim of reaching the 1-million-ton level, anyway. - The fact that there are no prospects for January-March shipments, next year, blocks the attainment of the 1 million tons. Consequently, a person in the 61 FOR OFFICIAL USE ONLY. APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034412-0 FOR OFFICIAL USE ONi.Y ~taal in.iu~[r~� in .:~~ar~,e ~i .:~~kici~ .:~al foresees that "1-mil.lion tons is hope- less. We wonder if the tonnage will be substantially below that." The Soviet side has recently made representations, saying "If we end up not attaining the target, we want to move the target forward beyond April, next year. Thus, the Polish situation is affecting Japan in the form of a decrease i n the shipment of Soviet coal to Japan. As Japan imports approximately 70 million tans oz coking coal, the decrease in _ Soviet coal imports does not directly affect Japan~s iron and steel production. Because of the sluggish economies at home and abroad, the production of iron and steel is falling. As a result, there tends to be leftover coking coal. However, it means the Soviet side's "breaking its promise" that coking coal, which is collateral for the repayment of the loan on the development of Yakut coal mines, is not supplied smoothly. Consequently, measures to be taken by Japan are to - be noted. COPYRIGHT: Yomiuri Shimbunsha 1981 CSO: 4106/38 62 FOR OFFiCIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504030012-0 FOR OFFICIAL USE ONLY SCIENCE AND TECHNOLOGY FINANCE MINISTER, MITI DISCUSS RELIEF OF ALUMINUM INDUSTRY Tokyo ASAHI SHIMBUN in Japanese 25 Dec 81 p 9 (,TextJ According to what was clarified by a source concerned on the 24th, how to spend the balance (about ~4,300 million, including the interest of some ~�500 million) of the funds for dispoeing of excessive facilities, which funds had been pooled through the ingot tariff allocatian system for fiscal 1978 an3 - ~979, for the relief of the aluminum-refining industry, was decided upon through consultations between the Finance Ministry and MITI. ~ This breaks down into the following: (1) About ~1 billion for the latter half of fiscal 1980, as scheduled, as partial aid in expenses for disposal, and about ~2 billion for fiscal 1981, by extending the time for granting by 1 year, in regard to the facilities which were discarded or frozen when the annual facilities capacity was reduced from 1,64 million tons to 1 million ton through- ! out the~industry circles; (2) about ~�500 million, which is equivalen~ to the interest, will be spent for research and development in industry circles of a refining method under which much electric power is not used, inc~luding the blast furnace method; and (3) the remaining funds, amounting to some ~�1,300 million, will be returned to the Treasury. Under the tariff allocation system in the past, unlike the tariff exemption sys- tem which is to be carried out for 3 qears from f iscal 1982, the tariff rate of 9 percent was reduced to 5.5 percent in fiscal 1978 and to 4.5 percent in fiscal 1979, with the :iecessary volume of imports as an object. At the same time, an amount with an equivalent of 0.25 percent deducted, in the amount of reduction of the tariff burden, was contributed by ingot importers, and it was distr~.bLted - l: UNL,Y SCIENCE AND TECHNOLOGY EPDC, TVA OF U.S. AGREE ON TECHNICAL EXCHANGES Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 988, 12 Jan 82 p 6 [Text] Electric F'ower Development fired power plants. TVA,~ ho~wever, is more ad- Co: and Tennessee VaDley Au- The fluidized-bed coal com- vanced in large plant know- thority will sign a technical co- bustion developed by EPDC h^W, already developing and operative agreement in Fel~ E~atures curbed output d r~.::~ic~' 1.3 million kilowatt ruary. nit;~qen oxides and compact cls:~:. ~~lants fired by coal. The two government-con- coal D:~lers. Air is blown from EPI: i_ >'rying to construct a 1 trolled organizations will ini- a boiler :nttom into the bed milli~r : kilowatt class plant tially swap technical know-how with limestone as ,pulverized after ~~erting up two 500,000 on coal-fired power plants, in- coal is fed alao to the bed. TVq kilowatt generators - the larg- cluding generation and trans- is constructing a similar ex- est of ita kind in Japan - at the mission. Eventually, they may perimental plant, while EPDC Matsushima works early in expand mutual cooperation to' started up ita test plant at ib 198I� include hydrcelectric and high- Wakamatsu station in July, Both EPDC and TVA started voltage electricity transmis- 1981. their power biisiness by hydro- sion. Besidee, EPDC's flue gas electric plants. They are ex- TVA is interested in obtain- treatment technology is said to pected to probe possibilities af. ing EPDC's caeil know-how, ~ more advauced than TVA's mutual assiatance in this area, such as fluidized-bed coal com- be~~e af the more atringent too. Further cooperation was bustion, ftue gas treatment and anti-pollution regulations in Ja- likely to involve higlrvoltage coal ash utilization. EPDC, on ~n. The Tokyo company is direct-currency transmission, . its part, wants to induct tech- trying to develop know-how for fuel battery and solar energy. nical know-how on construction fertilizer production from coal Like TVA, EPDC'generates and running large-scaled coai- ~h~ _ something that inter- p~wer primarily for wholesale - ested TVA. The U.S. organiza- without directly servicing end tion produces p..^wer as well as uaers. fertilizets. COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc. CSO: 4120/124 74 FOR OFFICIAL U5E ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FON +nFNI('IA1, l1SN: ONI.,Y SCIENCE AND TECHNOLOGY n FIVE POWER UTILITIES TO HELP MHI DEVELOP APWR TYPE REACTOR Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 989, 19 Jan 82 p 5 [Text] Kansai Electric Power Co. cast totsling ~F 10 billion. ~ and four other utilities have In additon, the Bechtel Group agreed with Mitsubishi Heavy and Mitsubishi Electric Corp. Industries, Ltd., (MHI) to and others in the Mifsubiahi financially help the reactor ~oup, also pledged to join the maker's advanced pressurized project to improve the pres- water reactor (APWR) project. surized water reactors. Some MHI and its PWR partners conatruction companies, which intend to complete APWR undertake civil engineering deslgn by 1984 so that they can ~ Wo~k at reector rltee,' vdt]1' ~ start construction oi commer- participate by the .end of thia cial APWRs in 1987. year. � The project will cast an esti- The project is almed at im- mated ~ 33 billion. Of the total, ~E 10 billion each wiil be put up Pr~~ng reactor reliabllity and by MHI and the five electric fuel economy. The latter will be utilities - Kansai, Shikoku, made poBaible by lxtrning plu- Kyushu and Hokkaido`Electric tonium, as generaEed in a reac- Companies as well as Japan tor. The goal is to redure enrich- , Atomic Power Co. - and ~fe ~ uranium consumptlon by 25 ~ billion by Westinghouse Elec- Per cent. tric Corp. The remaining ~f 5 In the fall of 1981, Tokyo bitlion is expected to be sutr Electric Power Co., other utili- sidized by the Ministry of Inter- ties and two boiling water national Trade & Industry. reactor makers - Hitachi Ltd. The utilities, led .by Kansai and Toshiba Corp. - started Electric Power, are discussing joint efforts for advanced - how they should share their BWRs. COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc. CSO: 4120/131 75 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 M'l)N tlb'Mll:l~+l. U~N: UNLY SCIENCE AND TECHNOLOGY NTT'S DATA DIVISION MAY BE MADE PRIVATE COMPANY Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 989, 19 Jan 82 pp 1, 4 [Article by Ichiro Kifune] [Text] Nippon Telegraph & Tel~ siun is severed from NTT, the placed on a self-paying basis phone Public Corp. ( NTT), separate firm's operation will for the following reasons: which is Japan's domestic tele- bE~ limited to a data com- -The corporation's aata communicalions services municatlons facilities serviee communications services have - monopoly, is cantemplating competitive with the'"~'ta8te greater advantages than pri- - separating its data com- data communications industry, vate enterprises in that NTT it- munications division as an such as the science & tech- self holds the circuits and the entirely private, Eelf-sustai~~ing nology cpmputation service corporation does not have to enterprise. This was disclosed cDEMOS-E) and the 'sales pay the corporate tax. last Thursday for the firsl inventory service (DRESS) -The data,~tomcnunication time by ils president, Hisashi which NTT has created by servicss constitute a burden to Shinto. He declared at a press using its communications NTT's finances, and this should ' conference, "Separation seems circuits and is offering to `~eMbr'~e~ered with`~Yti~v~nii~`~ to be the best way tor ukilizing general enterprises. derived trom its telephone and NTT's technologies for � fur- NTT inten~ to retain tor other profitable fields. thering data communications." il.self the~ service of offering its -It is preferable to have the The Second Ad Hoc Commis- ci~�cuits to private parties and data communieations division siun on Administrative Retorm also the simultaneous tele- compete on the same basis with now is studying the possibility phone, tacsimile and data com- private enterprises in order to of changing NTT lo a semi-gov- munications system, dubbed enhance its technologies to crnmenlal "special corpora- INS, which it is now developing boost product~vity. tion" similar to Japan Air tor inauguratioe in the 21st ceo- The Government's Adminis- Lines Co. and Kokusai Desn- tury, trative Management Agency shin Denwa Co., which mono- Uata communications are recommended strongly in polizes Japan's overseas tele- one ot the principal services July, last year that the data communications services. offered by NTT's data com- communications d:vision Signs thus are lhat the munications divi~ion along with should be made financially selt- problem of altcring NTT's data tetephone, telegraph and leased sustaining and streamlined. . communic;ations division to a ci~�cuits. The corporation's data Amid such circumstances, private basis, together with the cc~mmunications service in opinion also increased within issue of modifying the present fisca! t980 recorded a deficit of the Government in favor of - rY~:~na~;erial structure of the ~ 10.9 billion, and its [acilities having NTT becoming a corporation itself, is going to service in particular ran u~ a private enterprise, and the - have major repercussions on rcd of ~F 43.9 billion. commission studying adminis- privatc industrial fields in the Up to now there have been future. v~~ices that NTT's data com- flowever, evcn in the event munications division should be lhe data communicatiuns divi- 76 FnR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504030012-0 N'OR ONFI('IA1, l1SM: UNL,Y trative reform said then in its first report that it was going to study the issue from such a viewpoint. NTT itself worked out three possible plans to change its - managerial structure. They - were: -It should be converted to a special corporation like JAL and $DD, set up jointly with government and private funds. -Or NTT should be made a completely privately managed joint stock company like Ame- rican Telephone & 'Celegraph ~ Co. _ ~-Or NTT should keep its managerial form of being a governanent corporatio~ but, � legally, shouid be [reed from budgetary restraint and be less bound by necessity ta secure approval cor~stantly for new ~ projects. _ The corporation shortly is going to submit the three plans to the administrative refarm commission for study. NTT thus hopes to have its data communications division cut ofF and set up as a private, self-paying enterprise. For swiftly erasing the deficit of its data ~ommu~rications division, NTT is intending to do away with five centers of its sales inventory service and slash its personnel by about 1,000 per- sons. However, it is generally fslt , thal in ordcr to set up the data section as an entirely private company, NTT inevitably will have to undertake a radical review of its present mana- gcrial structure. COPYRIGHT: 1982, the Nxh~n Keizai Shimbun, Inc. CSO: 4120/131 77 FOR OFF[CIAL 115E ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 F'OR OF'F!C'IAI, ll~t~: ()NI,Y - SCIENCE AND TECHNOLOGY ~ GENE RECOMBINATION TEST GUIDELINE TO BE AL'rERED Tokyo JAPAN ECONO,IIC JOURNAL in English Vol Z0, No 989, 19 Jan 82 pp 1, 4 [Text] - 'I'wo official standards to According to ine Ministry, been unnecessarily strict in the unsure thc safety of gene the interim recommendation light of all sorts oF gene recom- recom~inalion experiments in will be proceduraUy repl8ced bination researches realized the country in force since 1979 shortly with the tinal one, and both in Japan and abroad since are expected to be radically the council will process it into 1979. Such apprehensions have rclaxed to about the same level its own ultimate revision plan come to be considered too as their equivalents of the U.S. for the guideline after con- exaggerated or imaginary. and other advanced Western sulting all schools and The equivalent situation in - countries by May. acadetnj,c institutions with America is quite different They are an experiment general engineering resear- because there are not 'only a ~uideline made public by jhe ches. But the Ministry already similar experiment guideline Ministry of Education in March visualizes acceptance of the but arrother closely related 197'), and an almost ider.ticai, plan and hopes to p^oclaim its safety guideline concerning the - guideline establi~hed by the relaxed guideline by the sec~ond handling of disease-causing Prime Minister in August of the week of May. microorganisms, and thus, same year. According to sourczs close to there is even a rising call in the Kespectively applied to the Stience & Technology U.S. for abolition ot at least the universities and nther Agency, the Science and Tech- experimenG guideline. But ~cad~mic research faciliti~ nology Council ot the Prime Japan has no disease-causing under the Education Ministry's Minister's Office will quickly ni^roorganism handling guide- jurisdiction, and all national, review the Prime Minister's line, which poses a certain public and private research guideline to match the Educa- problem with the pr^spective t;: ~ilitics under the Science and tion Ministry's relaxation, and relaxation. The it?terim recom- Terhnolo~y Agency's jurisdic- the Prime Minister's guide- mendation has offered an ~ion, the two standards are su line's similar easing could be answer by suggesting some clnsely r~~latc~d with cach othcr mcide pubiic almast simultane- new mandatory rule that such thal nm~ hi{~ r~~visiun of cith~r i~ ously. dangerous microorganisms, if - certain to lea~ a correspund- The Education '.Vlinistry says to be used for gene recombina- in~; chan~;~~ nf the olhc~r. the interim recommendation tion tests, should be pent up by With th~~ P:ducation Minis- was to the effect that the Mio- adopting the National Institute try's Kuidelinc, lhe Itea~m- istry's original guid~line based of Heal:h's internal study binant llNA ~ deoxyribonucleic on its Science Counci!'s initial control standard concerned. acid~ Experiment Gui~ieline ~ipprehension about maximum Anyway, the existing rigid - h:xamination Subcommittee of ~c~ssibil;ties of artifical creation standard re~uiring very elosely - the Mini~try's Science Council i~f unkr:flwn species af living sealed study facilities, known .ast we~~k came up wilh an Ihin~s, especially new danger- as the P(Physicall 4 and P3 ir.terim r,~commendation ou~diseaseca~~sin~microorgan- class, even in comk~ining - calling (ur such radical relaxa- ism,, if not tne science-fiction- human genes with colitorm tion of thc Min~str~'~, guideline. style chimera ur monsters, has bacillus genes, will be eased ~ 78 ; FOR OFFICIAL USE ONLY , APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 N'OR OFFICIAL USb: UNLY _ respectively to the P3 and P2 class, almost the same as the conventional microorganism experiment laboratories. Ob- serven "looked forward to the relaxation's effects of having a new impetus on Japan's entire gene recombina- tion researches, especially industrial attempts to mzke the most of gene recombination ' technology. ~ COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc. C~O: 4120/131 - 79 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 N'UR OFFI('IA1. USI? ONL.Y SCIENCE AND TECHNOLOGY INDONESIA BROWN COAL MAY BE UTILIZED FOR Ir1ETHANOL Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 988, 12 Jan 82 p 6 [Text] The Ministry of International use of Sumitomo Metal's Trade & Industry will under- gasification technique take a methanol feasibility featuring blowing pulvecized study jointly with In~nnesia in coal and oxygen into molten fiscal 1982. The Jakarta iron. The steelmaker plans to Government already has develop a gasification plant agreed in principle that the two based on the technique with countries will jointly . utilize daily capacity of 1,500 tons. The _ brown coal in southern Suma- gas can be converted into tra for methanol production, methanol by existing, proven _ with a part of the gasified coal technology like the prceess of likely to be consumed for fer- Lurgi, West Germany.. tilizer production. Several ideas were submitted - The basic agreement was to Indonesia by the Japanese relayed to MITI via a fact- team, including consumption of finding mission organized by ~oductione gAt f Palembang, the Institute of Energy Eco- Indonesia runs a fertilizer com- ~ nomics, Sumitomo Metal plex, where ammonia and urea Industries, Ltd. (which has the are , produced. Another idea gasification technology) and centered on gas utilization for ' Mitsubishi Corp. po~yer generation. Southern Sumatra has brown The team estimated that roal deposits totaling an brown coal totaling 5,830,000 ~ estimated 15 billion tons, in- tens a year can be consumed _ cluding 435 million tons in the for methanol production to the Bangko area alone, as earlier tune of 1.6 million tons and found by the Roys? Dutch Shell ammonia for ~ily output of 840 Group. The coal resources, tons as well as running e - however, have not been 500,000 kilowatt power plant. developed until now because of On its part, the Indonesian the high ( about 3s per cent) Government expects that the moisture content. Such a"wet" new industrialization program coal is generally expensive to wili contribute to dispersing its carry. population from Jawa (with 70 The Japanese team proposed per cent of its total population). COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc. CSO: 4120/124 80 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-04850R000500030012-0 FOR OFFICIAI. USN; ONLY SCIENCE AND TECHNOLOGY ' HITACHI, GENERAL MOTORS TO DEVELOP CAR ELECTRONIC CONTROL SYSTEM T~kyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 988, 12 Jan 82 p 7 [Text] Nitachi Ltd. of Tokyo, one ot mobile electronic parts to GM Japan's leading sutomakers. Japan's top-rated electric and because Hitachi wii! be chiefly As regorted, the prospective electronic equipment and com- in charge of the future micro- Hitachi-GM tie~up will be so pu!er makers, will shortly start computer-built-in electronic extensive it will encompass not full-scale cooperation with control systems of all GM cars. only all types of engine control General Motors Corp: . of the it will be all the more signifl- jobs based upon driving cir- U.S, in jointly developing cant as Hitachi has recently cumstances; but alsa all other microcomputer-involving elec- launched a joint "microcom� electronicatly controlled auto- tronic control systems for GM's puter-equipped car" research mated car functions. small, fuel-etficient passenger and development venture with Domestically, Hitachi has car series to he produced in lsuzu Motors Ltd. and 3uzuki long been closely cooperating future, it was recently learned. Motor Co,, both middle-rated with Nissan Motor Co. in elec- According to sources close to Japanese automobiFe com- tronic automation of the lat- - Hitachi, a blanket contract for panies financially affiliated ter's cars. Last June, Hitachi such a technological tie~up on an with GM .as members of GM's also supplied Isuzu with its i equal, reciprocal basis will be global family of automakers. microcomputerized engine con- concluded shortly between Hi- Hitachi would thus be one of trol system for the latter's tachi an~ GM's Delco Division the direct participants as GM's Piazza series of small cars, the in cha:^be of electrical equi~ new ally in the latter's drive first of Isuzu's electronically- ment for all GM vehicles. . toward its victory in the engine controlled vehicles. The tie-up will be naturally current "small car war" Isuzu is said to have learned quite difEerent from Hitachi's among all the world's suto- some of the GM technology past export supplies of auto- mobile industries, including involved ttirough ordering this system irom Hitachi. COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc. CSO: 4120/124 81 ~ FUR OFFICtAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 N()R ()NFI('IA1, t)51~: ()NI,Y _ SCIENCE AND TECHNOLOGY RACE BEGINS TO DEVELOP SERVO VALVE FOR ROBOT Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 988; 12 Jan 82 p 8 [Text] Japan's major industrial hydraulic machinery and robot makers have started a new technologic~l race to develop robot-operating hydraulic servo valves. At least three such companies--Kayaba Industry Co., Kawasaki Heavy Industries, Ltd. and Tokyo Keiki Co.--are engaged in the race with such intensity as to attract wide ar_tention of U.S. and European hydraulic mac'::.ine makers and technological mentors of Japan's hydraulic machine industry. Until recently, there had been only imported va'_ves of the kind on the Japanese market. Kayaba has recently come up with its own MK-II servo valve of electronic- ~ hydraulic type, on which it had started a research and development project at the ~ end of last year jointly with a machinery and equipment technological research gr.oup of Irlitsubishi Heavy Industries, Ltd. The new servo valve, with a built-in high-output motor working its control revolu- tion axis, is said to have few troubles due to clogging by dusts contained in its hydraulic oil and at least twice as responsive to electric signals as the imports. Its development had been ~hanced by the need for a specially precise valve to build into steel rolling plant labor saving and various experimental machinery. Japan's top robot maker, Kawasalci Heavy Industry (KHI), has developed its own KS Valve to apply to the robots it has been producing under a technological license granted by ifiimation Inc. of the U.S. The KS Valve is said to have brought an inquiry from Unimation itself for its 1 good performances. KHI plans to apply the valve to all of its future robot pro- ductions. - Tokyo Keiki has emerged with its own Digital Valve, an improved version of the - conventional robot electronic-hydraulic mechanism with the Iatter's analog con- verter replaced with a pulse-code driving circuitry to make a built-in micro- computer directly control the hydraulic circuits through digital signals. f~om- mercialization of the price of imported equivslents is planned, starting early next year. COPYRIGHT: 1982, the Nihon Keizai Shimbiin, Inc. CSO: 4120/124 82 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 ~OR ONFIC'IAi, 11~F: nN1,Y SCIENCE AND TECHNOLOGY TOSHIBA FREEZES ORIGINAL PLAN TO MASS PROi~UCE 64K RAM CHIPS Tokyo JAPAN ~:CONOMIC JOURNAL in English Vol 20, No 988, 12 Jan 82 p 9 [Text] Amid the intensi(ying com- turers, both on a wor'ldwide monthly, while Hitachi and petition among Japanese semi- scale, industrial sources here Mitsubishi Electric Corp. ao- - conductor manufacturers to believe. ticipate monthly production of 1 boost their pro~uction capacity Mass production of 64K million and 500,000 chips, re of very large-scale integrated RAMs, the first-generation spectively. A year ago, the pro- circuits (VLSIs), Toshiba product o( VLSis, began only duction rate oi each ot these Corp., currently the third larg- last year. Success in this field companies was only several est ~rcxiucer here, has frozen . is believed to be indispensable tens of thousands a month. its plan to mass produce 64- for manulacturers to s�rvive in It is believed tfiat Toshiba's kilobit random access memory the future and as a step up to tailure in startup marketing (RAM) chips. Instead of io- the second generation, 256-kilo- competition of 64K RAMs is be creasing its capacity ot 64K bit RAMs. Hitachi, Ltd. ao- ' hind the decision to freeze its RAMs from its current monthly nounced last December it plan calling for increased capi- output of 100,000-mintLS units to would begin mass production tal spending. Toshiba and NEC 300,000 units in next March as it as early as next autumn ot 256K have a joint `computer has earlier planned, Toshiba RAMs; which have a four times sales/software development will procure a certain pere~eo- larger memory capacity than business under MinisUy ot tage of the chips to be used in ~e gqK. International `Trade & Ind~try its small computer lines Irom In a bid lo secure as large a guidance. . Nippon Electric Co., the top share as possible of the market "This does not mean we are maker. and to benefit from large scale withdrawing fro^? the VLSI Upon settlement c3 detailed production, Japanese manufac- field. We are developing more discussions now underway be- turers have started increasing competitive, special types of tween Toshiba and NEC, the their production ~apacity one 64K RAMs and other VLSIs, lattcr will probably start sup~ after another. By the end of which we could start marketing plying Toshiba 64K F~AMs be- next March, NEC expects to be this autumn," a top executive ginning next month at the ear- turning out 1.05 million chips of Toshiba said. liest, initially by around '30,000 units on a spot basis. Toshiba's pianned procur~ ment of f,~K RAM chips reilects a coRSiderable change in its mc~dium-ran~e strategy toward - the semiconductor business, ~~nd could affect future market share among the manufac- COPXRIGHT: 1982, the Nihon Keizai Shimbun, Ir~c. CSO: 4120/124 83 FOR OFF(CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 1~OR OH'!~I('lA1. UtiN: ONI,Y SCIENCE AND TECHNOLOGY NAGAOKA UNIVERSITY SUCCESSFUL IN ION BEAM THERMONUCLEAR FUSIONS Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 988, 12 Jan 82 p 17 [Text ] The Technological University The other is a more recently as many as 8,000 tests to create oC Nagaoka, Niigata Prefec- developed way, an inertial ion beams. The team thus has ture, recently reported a series pen-up type, to put such "fuels" succeeded in creating such of remarkable successes in in a small spherical reactor beams of at least 50 nano-sec- creating high-speed and high- and make the fuels explode by onds in beam pulse width and in energy beams of ions of hy- some powerful energy bom- 1 million electron volts fuel ac- drogen, boron and carbon for bardment, and~ caus4 ~the celeration ~lectric pressure causing thermonuclear fu~ions. wanted very hot plasm9 condi- ~s~eed), using not only hydro- tior~ by utilizing the force of gen, but also boron and carbon. The university's Etigo-I ex- com~r~sion occurring in reac- In the necessary narrowing perimenlal facility to create tion to the force of explosion. down of the beam, increasing of such ion beams, Japan's first The new way is best de- its current density and ensur- full-fledged device of the kind veloped in the U.S., where an ance of effective transmission completed at the end of 1980, actual nuclear fusion trial by of the beam to the target, the is intended for starting a nu- ~at way is said scheduled by team has succeeded in reduc- clear fusion reaction phenom~ lggs. ing the beam's diameter from non in a small test spherical According to the university, 12 centimeters to S millimeters, reactor less than 1 millimeter in Etigo-i facility, built ac- raising the beam's electric deo- diameter packed with deu- cording to the new ineriial sity from 50 amperes/square terium and tritium, multi- ~n-up principle, is a cylin- centimeter to 10 kila molecul:ir types of hydrogen as drizal affair lying on one side amp~~/square centimeter, �'fuel," by bombarding the two and measuring 11 meten long, about 200 times higher, attain- it.rms in the reactor w~th strong ~.5 meters high, and its ion ing about SO per cent in the ion beams. beam generator inside is also a beam lransmittability. ~ 7'he nuclear tusion lype o[ cylinder of 5 meters in length The team is contmuing to re- energy creation, one of the two and 2.5 meters in diameter. fine its achievements toward a ideal sun-like energy genera- A pair of concave mirror- target of 1C million electron lion sought by all the world's style ion generating source of volts in electric pressure for nuclear e~nergy researchers, 12 centimeters in diameter in the earliest possible start of Ja- ' ruu~;hly divide into two kinds. the heart of the double cylinder pan's own nuclear fusion trials. l)ne o( them is to pen up such emits ion beams through Eilm- fuels in a strong magnetic [ield inq of some kind of fuel when a as an extremcly hot and dense st, ong electric preasure ie a~ plasma ~ electronically sepaeat- plied to it. During the past one- ~~i cnndition as to their mole- year period, the university's cul~~s and atomsi. research team has carried out COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc. CSO: 4120/124 _ 84 ~rOR OFF(CIA1. USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 NOR OFFI('IA1. USE ONLY SCIENCE AND TECHNOLOGY FUJITSU FANUC COOPERATES WITH TATUNG ON ROBOT MARKETING Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 989, 19 Jan 82 p 8 [Text ] h ujitsu h'anuc Ltd. has 7'he 7':~iwanese enterprise, reached basic agreement with basecf in Taipei, is a con- '!'aiwan's Tatung Engineering glumerate en~aged in a variety t'o. to tie up un sales of indus- of business lines, including Irial rolwls. eleclronics, cumputers, com- Undcr thc arrangement, lhe ' muuications equipment, heavy 'I'aiwanese compa~~y will be eI~~:U�ical machinery, and iron gr~nted the exclusive right tu and steel. The company recent- sell all kinds of F'ujilsu h'anuc's ly puts a stress on machine rubols in 'l'aiw~n uver tl?e next tuols and other machinery sec:- seven years. The top-rate Japa- lors. Il also shows a strong xeal nese robot develuper now tu branch oul inlo the rottot - mdnu[actures handling robots field. . for machine tools equipped with numerical control device, assembly robots for machincry ~wrls, and otl~er high efFiciency rubuts. F ujilsu N unuc I'resident ticieman Inab;~ will Cly to Taipei a~?un tu fornialirc lhe basic ac- curd. In~~lx~ said Ihc sales lic~up n?.iy develop inlu a broader li?~k, inrluding pruduclion skills. il''I'aluu~ wishes to do so. COPYRi.CIiT: 1982, the Nihon Keizai Shimbun, Inc. CSO: 4120/131 ffi FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 FOR OFFICIAI. USE ONI,Y SCIENCE AND TECHNOLOGY YAMAHA TO ENTER INTO AIRCRAFT ENGINE FIELD Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 989, 19 Jan 82 p 8 - (Text] Y~in~ha Mutor Co., one of tws becn aspiring tur such a .lapau's largesl mulorcycle business diversification, be~ makers, is venluring inlo the cause of Its disadvantage ot aircra[t engine indusiry lhis t~eing a motorcycle and engin~ year as its new business making specialisl, compared diversification step. wilh tt~mda's successiul motor- [t already had obtained the cycle and automobile business - permission of the Ministry o[ lines. lntertwtional Trade & Industry The company of Iwata, [ur doing so under the Aircraft Shizuoka Pref. will be lt~e Production Enterprises Law. fourtti Japanese air engine Sources close lu lhe company producer under the !aw afler said that in [iscal 198'l, starting Ishikawajima-fiarima Heavy - n~xl April, Yamaha will Industries Co., Kawasaki produce and deliver to the Heavy Industries, Ltd. and I>etense Agency several pistun Mitsubishi Heavy Industries, cngin;:s for drones, that is, un� n~anned targcl planes, tor th~ Bul lhe sources ~aid MITI '�Shurl 5AM" (shurt-range plans lo guide Yamaha Molor's gr~iund to~uir missiles) of the develupmenl bs an air engine (;ruuud S~If�I)efense F'urcc. maker in such a way as lo ~~~1~~. c~,m~ny is planning to makc a sp~.~:ial kind ot air en- IKUId ils Fwsition ~n 1hc indus ginc manufactur~r aparl from try, sl;~rtinb wilh such targ~~t tl~c cstablished Uiu on lhe basis ~,lane cu6ine pruclu~~lion. ot Yamaha Motur's experience , '1'i~uugh lung fiercely c~~n~~ ancl skills in aUt~imotive engine ~ting with ilu~eda Mulor Cu., produclion. M1TI hardly lhin{es lhc wc>rld's lur6est muturcyclc lhc con~~~ny is yualificd at maker u( Japan, buth on Ihe pr~sent to participale in uny domestic and uvcrsws nu?I:,r- internalional joint air engine i~ycle u~arkels, Yanu~ha Mutor development venture. COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc. CSO: 4120/131 86 FOR OFFICIAL USF. ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R004500030012-0 NUR O~FI('lAl. USH: ONLY ~ SCIENCE AIvD TECHNOLOGY MINISTRIES DIFFER AS HOW TO REVISE DATA CO1rIlrIUNICATIONS LAWS ' Tokyo JAPAN ECONOMIC JOURNAL in English Vol ~D, No 989, 19 Jan 82 p 9 [Text ) The Ministry of International The argum~nts ot both min- nomic Organizations), the Ad- Trade & Industry and the Min- istries hinge on the following ministrative Management istry of Posts & Telecommuni- two points: 1) Whether a new Agency and the Fair Trade cations (MPT) are at odc~s over !aw as demanded. by M~T is. Commission have been in favor revision of laws related to data ~~ecessary tor the libe'ral{zation of the MITI opinion. The in- communications whose lib of leased lines; 2) Whether pro- terim report of the Spcond Ad eralization or open use Aas tection of users of data com- Hoc Commission on Admirf been strongly demanded by the municatior~. circuits should be istrative Reform also has de- _ United States and Japan's busi- achieved by legal means as manded extensive liberaliza- ness community. argued by .the Posts & Tele- tion of data communications Both ministries have had communications Ministry or be circuits, following clasely tt~e eight sessions of negotiations entirely left to op~n competi- MITI argument. over revision of data communi- tson among users, as MITI con- ~rthermore, the U.S. hes cations laws since mid-Decem- recently demanded a complete ber, last year, but their views On these two points, the two liberalization of data communi- still are wide apart and seem ministries completely ~differ. cations circuifs on the grounds di[ticult to be bridged in the MITI is all-out to admit to a ~t the'~egal revis~Qn of the near future. MPT demands that maximum de~ee the particl� Posts & Teleaommtlhications a new law, tentatively named pation of private fi~�ma in data Minist:y excludes the partici- "Data Communications Law," communications except for pation of foreign capital in Ja- ~ must be mapped out and such main businesses as tele- Pan'g data communications, enacted, while MITI argues phone and telegcam services thereby likely to become an- revision of the present Public handled by NTT, but MPT other source of economic fric- Telecommunications Law is argues that the business of pri- tion between the4tvo countries. adequate to cope with the situa- vate firms in data communica- Spurred by all these factors ~;~n tions field rr?ust be checked to MITI had recently adopted tac- Data communicaiions cir- protect users. Behind these tics ot filibustering to stop the cui~s in Japan have been widelY-changing views lies the plan of the Posts d~ Telecom- monopolized by the govero- fact of bureaucratic "jawbon- munications Ministry and has mental Nippon Telegraph & ing" between the two minis- heen demanding complete lil> 'fclephone Public Corp. (NTT), tries in an attempt to place eral?.zation of data communica- but MITI and the business com- under their respective control tions circuits through the re.~i- munity have long been criticiz- the data communications in- sion of existing laws. Fa~ed inK that such a monopoly dustry which is expected to with this, the MPT plan has hit hin~iers progress of data cam- make gigantic progcese in the a stumbling bloek. , - munications, and have been de- coming decade. All bills must be submitted to manding "liberalization in Up until now, all reports or the current Ordinary Diet ses- ~~rinciple" of joint use of leased recommendations made by sion by inid-March for passage. i~n~~s by privatc businesses. Keidanren (Federalion ot Eco- 87 FOR OFFICIAL USE O1ilLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034012-0 rvx ~arit,i,~?~ w~. ulv~~ But if the currenl deadlock con- tinues, it will be extremely dif- ficult for both ministries to come to terms over the matter. Chances are likely that revised bills might just cover those areas where both ministries have found the agreemerit, b~ ing tar from fhe complete li~ eralization of data communica- lions circuits aimed at the Fie- ginning of negoliations. In this sense, observers said, even if both ministries come to agreement on some areas for the time being, complete li~ eralization ot data communica- tions is very likely to be post- poned. COPYRIGHT: 1982, t:~e Nihon Keizai Shimbun, Inc. CSO: 4].20/131 88 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034412-0 FOR OFFICIAL USE ONLY SCIENCE AND TECHNOLOGY - TORAY TO COMMERCIALIZE 'STRONGEST' FINE CERAMIC Tokyo Jt~PAN ECONOMIC JOURNAL in English Vol 20, No 989, 19 Jan 82 p 17 [Text] Toray Industries, Ltd. re- yttrium, while Zirconia is a cently disclosed intention to kind of zirconium oxide de- commercialize the new fine veloped by the company itself.) ceramic it ha.s developed and Its new engineering ceramic coniirmed as being the strong- hes attained anywhere between est of its sort so far made in the 150 and 170 kilograms per world. square millimeter in bending 7 The leading multi�business strength, far surpassing the Japanese synthetic fiber maker hitherto known world record of will start test production of its 130 kgs. per square millimeter new ceramic by around 5une at for such materials, the com- an experimental plant tu be pany said. built within its Shiga tactory In addition, its new product complex in Otsu City near has proved to be so tenacious Kyoto. and free from the inherent brit- The company said the ~f 500 tleness of ceramics as to defy ordinary hammering, let alone million plant for producing high resistance to heat attd several hundred kilograms of chemicals and high moldabil- the fine ceramic will perform ~~y all sorts ot tess to develop So far, the company has used many different applicabiliti~ ~W product as an aocygen - of the ceramic and set the stage ~~~ty sensor for its o~q+ ion for iull co.*.~mercialization c~t' conductivity and also tried it the ceramic in about tive yea: tor making k~3~~es by making The company explained its the most its p: ysical proper- new engineering ceramic is es- ~ips. But the company viaual- sentially a 3 per cent yttria- izes many more uaes d the new added and sintered version of pruducts, including ~t'oduction 7.irconia. (Yttria is an oxide of of clectronic parts and indus� triel cutting edges. COPYRICHT: 1982, the Nihon Keizai Shi~bun, Inc. CSO: 412G!131 END 89 FOR OFF[C1AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030012-0