JPRS ID: 10313 JAPAN REPORT

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APPR~VED F~R RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 FOR OFFICIAL USE ONLY JPRS L/ 10313 9 February 1982 , Ja an Re ort p p CFOUO 9/82) F~IS FOREIGN BROADCAST INFORMATION SERVICE ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 APPROVED FOR RELEASE: 2407/42/09: CIA-RDP82-40850R000500430022-9 IvOTE JPRS publications contain information primarily from foreign newspapers, periodicals and books, but also from news agency transmissions and broadcasts. Materials from foreign-language sources are translated; those from English-language sources are transcribed or reprinted, with the original phrasing and other characteristics retained. Headlines, editorial reports, and material enclosed in brackets are supplied by JPRS. Processing indicators such as [Text] or [Exc~rpt] in the first line of each item, or following the last line ~f a brief, indicate how the original information was processed. Where no processing indicator is given, the infor- mation was summarized or extracted. Unfamiliar names rendered phonetically or transliterated are enclosed in parentheses. Words or names preceded by a ques- tion mark and enclosed in. parentheses were not clear in the original but have heen supplied as appropriate in context. Other unattri~uted parenthetical notes within the body of an item originate with the souz�ce. Times within items are as given by source. The contents of this publication in no way represent the poli- cies, vi.ews or attitudes 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 ONLY. APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R400504030022-9 FOR OFFiCIAL l!SE ONLY JPRS L/10313 9 February 1982 I ~ ; JAPAN REPORT ~ (FOUO 9/82) . CONTENTS POLITICAL AI3D SOCIOLOGICAL Japan To Endorse Disarmament TreaCies st UN (ASAHI F.VENING NEWS, 1 Feb 82) 1 Japan's nSP Adopts 1982 Action Program ~KYOUO, 20 Jan 82) 3 Suzuki Diet Spe~ch Viewed as Evaeive ~ (Editorial; NIHON I~IZAI SHIMRUN, 26 Jan 82) 5 'YOMIURI' Hits.'Lackadaisical' Diet Proceedinga (Edit.orial; ^~'HE DAILY YOMIURI, 31 Jan 82) 7 Suzuki Defenda Defense Spending Plan in Diet ~KYODO, 1 Feb 82) ......a.....~ 9 - MITI's Goals, Policiea, Administrative Methode Examined (Tadahide Ikuta; CHUO KORON, 1981) 11 - ' MILITAIZY 'MAINICHI': Release Contents of Japan-i1.S. Arme Metnorandun~ (Editorial; MAINICHI DAILY NFWS, 31 Jan 82) 30 SDF Mapa Out New 5-Year Aefense Program (JIJI, 7 Jan 82) 32 Briefs View of Japan's Defenae Minister 34 S~IENCE AND TECHNOLOGY Reprocessed Plutonium for Light Water Reactor Power Generation (MAINICHI SHIMBUN, 31 Dec 81) 35 - a - [III - ASIA - lIl FOUO] FOR aFF'ICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R400540030022-9 r~ux ur'h'ic:~n~ u5E uNLY Strengthened Nuclear Fuel Cycle, Budget Examined (DENKI SHUI~UN, 9 Jan 82) 38 Ultra High Performance In.~rtial Guidance System for H-1 Rocket Being Develope~ (C'!I~IITER DIGEST, Jan 82) 40 ~ - b - _ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 APPROVED FOR RELEASE: 2407/42/09: CIA-RDP82-40850R000500430022-9 FOR OFFICIAL USE ONLY YULITICAL AND SOCIOLI~ICAL JAPAN TO ENDORSE DISARMEIMENT TREATIES AT UN OW021633 Tokyo ASAHI EVENING NEWS in Enolish 1 Feb 82 p 1 [TextJ In response to the growing interest in disarmament in connection with the second United Nations special General Assembly on disarmament in June, the govern- ment will submit to the current diet ses~ion bills to approve the ratification of, or Japan's participation in, three international disarmament treuties in non-nuclear areas. `The three pacts are: (1) The treaty on the prohibition or restriction of the use of "certain conven- tional weapons which may be deemed to be excessivelq injurious or to have indis- criminate effects": Weapons to be controlled ~snder this pact include plastic bombs, mines and booby traps which could cause injuries to the civilian population, - and napalm and otii'er incendiary weapons. Japan and 44 other countries, including Britain, France, West Germany, the Soviet Union and China, have signed the treaty, which was adopted in 1980 by the United Nations. The United States has not yet signed it, saying its disarmament policy is still under review by the new Reagan Administration. (2) The treaty on the prohibition of the production and stockpiling of "bacterio- logical and taxic weapons," which was established in April 1972 and signed by 88 nations including Japan and the two superpowers. (3) 'I'he tre:~ty ~n tl~e prohibition ot the use for military purposes of technologies ~u cuu5c natural haz~~rds such a:: earthquakes, tidal waves, sudden changes in the currents oF the seas and other c�hanges in the natural environment, wh.'.ch was adopted - in December 1976 and signed by the U.S., the Soviet Union, Britain and other major countrtes. Tokyo has not yet signed it. Prime Minister Zenko Suzuki has made it clear that he will go to New York in June to attend the U.S. conference to appeal for ~i ban on nuclear and chemical weapons. Japan has signed the first two of the above three treaties but has not yet ratified them, and it has yet to become a signatory to the third one. 1 F~~R OFF1C[AL 1JSE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 APPROVED FOR RELEASE: 2007/02109: CIA-RDP82-00850R400540030022-9 ~OR OFFICIAL USF ON1.Y 'I'iie government fcels .Japan shautd become a party to the three treaties to give more weight to its appeal for disarmament. With the U.S. conference scheduled in June, - now is the best time for Tokyo to take such action. No objection is expected to _ be raised by either the ruling Liberal-Democratic Party or the opposition parties. Work is now being conducted hurriedly on coordinating the provisions of these treaties and those of related domestic laws. COPYRIGHT: Asahi Evening News 1982 CSO: 4120/139 2 - FOR OFFIC.IAL tJSE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 FUR OFFICIAL USH: ONL1' PO;,ITICAL AND SOCIOLOGICt1L .TAPAN'S DSP ADOPTS 1982 ACTION PROGRAM OW201145.Tokyo KYODO in English 1134 GMT 20 Jan 82 [Text] Ta%yo, 20 Jan KYODO--Japan's Democr:itic Socialist Party, the moderate No ~ opposition party, Wednesday decided its 1982 action program, stressing the need io~: Japan to strengtYien the existing Japan-U.S. sec~irity partnership and bear greater responsibility for i.ts own defense. The plan, to be submitted to a DSP regular party convention scheduled to start 17 February, said the party would promote Japan's greater role in defense and closer Japan-U.S. defense cooperation in concrete terms. Such closer defense ties between Japan and the United States are needed particular- ly in view of the current global situation which the party said is forcing Washing- ton to adopt the "swing" strategy involving rapid transfer of forces from one area to another. Behind the DSP's thinking on defense is increasing world tension, the party's advocacy of greater preparedness against what it calls the p1threat" from the Soviet Union, and the party's receptivity to America's mounting calls for greater Japanese defense effurts, observers commented. The DSP action plan calls for a well-balanced Japanese defense buildup whils promotion a peace strategy, sticking to the framework of the war-renouncing constl.tution and paying due consideration to tl- ndition of government finances, _ It urges Japan to make effective use of its defense budget and upgrade quality in an effort to achieve its responsibility as one of the Western bloc nations. The DSP plan declares that the party upholds the current security partnership between Tokyo and Washington and calls on the Japanese Government to conduct a general reassessment of the national defense progrum outline, adopted in 1976 as a basic buildup plan. The DSP proposes unified parliamentary action by the four moderate opposition parties--the DSP, Komeito, New Liberal Club and United Social Democratic Party-- through a liaison between their diet policy and electio� policy committees. 3 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R400504030022-9 FOR OFFICIAL USE ONLY This proposal is ].ess amhitious than one for a more outright political alliance of the four parties within the diet, advocated by DSP Chairman Ryosaku Sasaki last June. Th~ former proposal failed to work. The DSP also calls on the three other opposition parties to agree to run joint candidates for the house of representatives in 39 electoral districts. CSO: 4120/138 4 , FOR OF'F[CIAL USF ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R400504030022-9 FOR OFFICIAL USE ONLY POLITICAL AND SOCIOLOGICAL SUZUKI DIET SPEECH VIEWED AS EVASIVE OW311409 Tokyo NIHON KEIZAI SHIMBUN in Japanese 26 Jan 82 p 2 [Cditorial: "Prime Minister Suzuki's Speech Unappealing, Unimpre~sive"] ['Pext] Why are the government's policy speeches deli~vered at the diet so bor.ing? We are not satisfied that U.S. President Reagan endlessly expounds changes of ideas - or philosophy in his speeches and, thus, gives us the impre5~,ion that what he is saying must still be given the finishing touches to be called concrete policies. Frankly, in speeches by our prime minister, Suzuki, we cannot find anything to be called a philosophy or any detailed explanations on policies. We are sure that the prime minister has gov~rnment policies to dwell on but, per- haps, because of the need to make prudeatial replies during diet interpellations, he steered c1Ear of elucidating or expounding his policies in that important speech in which he should have personally appealed to the nation. For instance, he did - not even mention the question of an income tax re~iuction which, by its very nature, wi11 be the focus of debates at the current diet session. The question of a tax cut is not the only which the people wanted to know more about but which was left untouched in the government speeches. In his speech Prime Min- ister Suzuki did cite the implementation of administrative reforms and the elimina- tion of economic frictions with foreign countries as the immediate, urgent tasks facing Japan. However, he only put perfunctory words in order regarding them, thus making us unahle to find what course the government is planning to take from his speech. What we do find is the attitude toward administrative reforms that the government will wait for the provisional survey council on administrative reforms to come up with recommendations. Regarding the elimination of economic frictions overseas, he did no more than "express his resolve" to settle the issue. As far as administrative refornis are concerned however, what the nation wants to learn from fhe government at tliis stage is what kind of Japan the highest person in 1 the administrative authority aspires to build through administrative reforms, or the "philosophy behind the admtnistracive reforms" and a rough direction of the reforms eyed by the government. This notwithstanding, the prime minister persisted - with a posture of entrusting everythii~g to the deliberative council and only await- ~ ing its recommendations. Consequently, this means that political leadership is of no utie. 5 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 APPROVED FOR RELEASE: 2007/02109: CIA-RDP82-00850R000500030022-9 = MOR OMFICIAL US~: ONLY ~ The prime minister's reference in his speech to the elimination of external economic friction was too short. He said only: "It is Japan's obligation to contribute to preserving and expanding free trade and making the world economy active" and "we will voluntarily work out measures to further open up the Japanese market and strive to make trade relations with ot}~er countries smooth." Does this suffice in making other countries understard Japan's resolve and sincerity? Nowhere in the govexnment's policy speeches can we feel the tension which we should naturally feel for the nearing expiration of the time limit on the resolution of this issue. In the first place, speech is an act for conveying one's will to his audience and f or influencing it. As a rule, the meaning in political science that violence is the "last reason" is understood in conjunction urith this. However, prime minister Suzuki abandoned the best opportunity to make the most of his speech. In Japan where things are mostly done through behind-the-scenes maneuvers and dealings rather than the utilization of the power of the public speeches, Prime Minister Suzuki is not the only one who does not make the most of speech. However, we are afraid that national interests may be impaired if teaders fail to say something timely which should be said with regard to affairs invc~lving external relations. In this sense, the prime minister's speech which is too ambiguous and too simple is open to ques- tion in too many areas. Tht portion of the policy speeches dealing with the defense question--which is expected to be one of the focal issues at the current diet session along w~ith admin- istrativz reforms, economic friction with other countries and tax reductions--seemed as though it was bound with hoops two- to three-fold. In this we can perceive the rulers' evasive attitude of giving consideration to the safe steering of diet delib- erations first, instead of influencing the people through speech. This is regret- table. We believe the pr~me minister's concern lies in the opposition's criticism of the ~;overnment for increasing the fiscal 1983 defense budget by 7.75 percent over the preceding fiscal year. Neverthc�less, unlike the general perception prevailing at home, it has become the seed of international criticisms against Japan that Japan is not spending money for defense. T~ c~ur regret, the government's policy speeches only showed an evaslve posture in all areas. COPYRIGHT: Nihon Keizai Shimbuneha 1982 CSO: 4105/53 6 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R400504030022-9 ~ I~OIt OFF'ICIAL USH; ONLY POLITICAL AND SOCIOLOGICAL 'YOMIURI' HITS 'LACKADAISICAL' DIET PROCEIDINGS UW011030 'Pokyo TEI~ DAILY YOMNRI in ~nglish 31 Jan 82 p 2 [YOMIURI SHIMBUN 30 January editorial: "Diet Shadow Play"] [Text] We are not only deeply disappointed but infuriated by the lackadaisical proceedings in the lower and upper houses. We have ~o feel that the ruling and - opposition parties are not delving deeply enough into such important national issues as administrative reform, financial rehabilitation, income tax reduction, defense and political ethics. Prime Minister Suzuki is appare~~tly playing a safe hand, for his replies to inter- pellators have been merely a reading of drafts composed by go~erinnent officials. Where has the passion of political debate gone? How can we get to the core of pzoblems when our representatives are acting out a shadow play? The people are calling for a tax cut. But the heart of the problem is how to - reconcile Einancial rehabilitation witlt a tax cut. All the parties urged the government to carry out a tax cut, but none of them went into the matter in great depth. This omission is regrettable. But what the people deplored more was the premier's hemming and hawing. He ducked the issue by saying that the government would con- sider a tax cut if it was the national consensus, as if the matter had nothing to do with him. This smacks of an eva.sion. Soci~zlists Skimp A].so The opposltion partics also showed inconsistency in questioning the government's plans For administrative reforms. The people must particularly remark that Socialist Party (JSP) Chairman ]'chio Asukata hardly toucked the sub~ect, which concerns the people as much as a tax reduction. Perhaps Asukata became tongue- tied because his ears were gttuned to union opposition. As long .zs the JSP fails to lead, but is led, it can never become a national party. - 7 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 FOR OFFICIAL USE ONLY Meanwtiile, we sensed some subtle change in the premier's replies on administrative reform. Although we do zot know yet the contents of the report to be compiled by the administrative reforn. council this July, it is certain that the rec.ommendations will be strongly resisted by various quarters. The premier's duty is to break through such resistance, he should not be looking far a way out in anticipation of difficulties. ~ther Evasions When the debates focused on defense spending, the premier parroted the 1976 cabinet decision that defense spending each year shall be set so as not to exceed one percezt of the GNP [gross national product]. We have to be dissdtisfied when debates on defense focus only on percentage margins. The core of the defense problem is a proper appreciation of the current reality that a balance of power actually serves to maintain world peace and security. - An objective assessment of the status ~~uo must be the basis for Japan to contribute to disarmament efforts. We hoi~e for pc~netrating debates in the upper and locaer house budget committees. COPYRIGHT: The Daily Yomiuri 1982 CSO: 4120/139 S FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 APPROVED FOR RELEASE: 2007/02109: CIA-RDP82-00850R400540030022-9 FOR OFFICIAL US~ ONLY POLITICAL AND SOCIOLOGICAL . SUZUKI DEFENDS DEFENSE SPENDING PLAN IN DIET OW011301 Tokyo KYODO in English 1156 GMT 1 Feb 82 . [Text] Tokyo, 1 Feb KYODO--Prime Minister Zenko Suzuki said Monday he has "no plan at all" of building up Japan's defense strength to the extent that it poses a military threat to its neighbors. Speaking at a house of representatives committee meeting, Suzuki noted that there - are people who fear that Japan's defense spending may grow "unchecked" in the future. ~ "Such fears are unwarranted," Suzuki said. He also rejected as "absurd" allegations that his Liberal-Democratic Party (LDP) is trying to put Japan again on the road of militarism. This refers to an objection by opposition parties to the government-proposed 7.75 percent defense budget increase in fiscal 1982 to yen 2.6 trillion (dollar 11.7 billion) at the expense of educational and social welfare outlays, each held to _ less than a 3 percent budgetary hike. "We have no plan at all to pose a threat to our neighbors by expanding defense strength," Suzuki said. ~arlier in the committee session, Suzuki said he wants the 1976 defense buildup plan completed "a year or even 6 months ahead" of its target ~~~u~letion year of fiscal 1987. The plan maps out Japan's def.ense power in terma of number of tanks,~aircraft and ground combat units. ~ But many LD1' diet members as well as U.S. Government officials mainta3:n that the plan is outdated, saying it was compiled during the detente between the Western and Eastern blocs and that it does not take into account the recent Soviet military buildup in the Western Pacific. - Concer.ning the government policy to hold its defense spending to less than 1 per- - cent of the gross national product (GNP), Suzuki said in the committee meeting; "GNP is subject to fluctuations of the international economy." 9 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 FOR OFFICIAL USE ONLY Though he did not elaborate, the remark suggested that defense expenditures may go beyond the 1 percent level in time. The 1982 defense spending is expected to equal 0.93 percent of the GNP projected in the fiscal year starting in April, up from 0.91 percent this year. Last week, Suzuki said the government will keep its defense budget below 1 percent of the GNP "for the time being." = CSO: 4120/138 10 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 FOR OFFICIAL USE ONLY POLITICAL AND SOCIOLOGICAL MITI'S GOALS, POLICIES, ADMINISTRATIVE METHODS EXAMINED Tokyo CHUO KORON in Japanese Fall Issue 1981 pp 187-204 [Article by journalist Tadahide Ikuta: "The Ministry of International Trade and Industry: The Most Powerful Government Agency~s Secret"] . [Text] Is The Ministry of International Trade ~nd Industry Necessary? On 10 June, several middle-level bureaucrats of the Ministry of International Trade and Industry (MITI) met in the Secretariat ~ s Planning Section chief's ~room on the third floor of the new MITI building, beginning at dusk. The youngest of them, Director Nonouchi of th~ General Affairs Section, Agency for Natural Resources and Energy (who joined the ministry in 1956 and is presently chief of the MITI Petro leum Department. Years in parentheses hereafter indicate entry of officials into respective ministries), and Minister Tanaka of MITI arrived late because they were attending a dinner for foreign guests. Meanwhile, the others were engaged in an animated diacussion of such questions as. "what is MITI?" and "why does a government aRency which handles industrial administration such as MITI exist onl y in Japan?" In addition to Nonouchi, six other participants were: Planning Section Chief Kosuke Yamamoto (1959), Automobile Section Chief Shin~iro Nishinaka (1960) of the Machinery and Inforniat ion Industries Buresu, Aircraft Weapons 5ection Chief = Yoshihiro Sakamoto (1 9 62) of the same bureau, North Asia Section Chief Akihiko Hayashi (1962) of the International Trade Policy Bureau, Technical Research Section Chief Norikazu Matsuda (1965) of the Agency of Industrial Science and - Technology, and energy planning official Katsusada Hirose (1966) of the Energy Agency. It is customary at MITI to begin lively shop talk while drinking beer after 7 pm, but alcohol was omitted on this particular day. The reason was that Yamamoto had rejected a proposal by one participant to "talk over beer." - The discussion centered on each individual's experiences and continued late into the night. The points emphasized could be boiled down into the following: "MITI has an aversion to co ntrol:;, while ita forte lies in the promotion of pro~ects. But the Diet and society demand the strengthening of various kinds of controls. - Nevertheless, throughout its history, MI~I has done its utmost to free itself 11 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 APPROVED FOR RELEASE: 2407/42/09: CIA-RDP82-40850R000500430022-9 ~OR OFFICIAL IJSE ONLY ~ ~ ~ from exercising controls through licensing and subsidizing, and we MITI bureau- crats are taking pains to administer without the use of controls" (Nonou~~hi). Of course, the participants had high praise for MITI's role in Japan's economic development and stressed the future expansion of that role. One participant declared: "When I observe MITI as an ordinary citizen, dissociating myself from my position as a bureaucrat, I still rate its existence highly." The atmosphere of the discussion indicated a kind of narcissism concerning MITI. Toward the end of the discussion, I posed ttte question: "How would you define MITI, using an easily understandable metaphor?" While various opinions were exnressed, Nonouchi used the metaphor of the firefighting system of the Edo period and said it was like "the leader of the 'Me' squad." There was also a comparison with the leader of the neighborhood mutual assistance system. In other words, whenever a problem occur~ in the industrial world, MITI is seen as the agency to consult for a solution to the problem. Testimony of Concerned Outsiders Several days later, I met a member of the Industrial Structure Council (Chairman Yoshihiro Inamaya, who is also chairman of the Federation of Economic Organiza- tions), the advisory organ of the MITI minister which plays an important role in - draftinK policy for the ministry. When I explained the ^ontent of the above- mentioned discussion, he responded with severe criticism. While appraising MITI's achievements in devc~loping Japan's industries in the export field and its flexible administrativ~~ posture in avoiding the use of such authoritative powers as licensing held by tl~e postwar bureaucracy, the council member said: "The term 'leader of thel~e sq~~ad' is a self-denigrating expression - used by bureaucrats, but I believe that they have adroitly used the 'carrot and stick' policy to maintain consistent control over industry. The difference lies in their highly complex and complicated methods." Tt~e council member went on to say that MITI's role in the development o� Japan's economy cannot he ignored, biit it was due b,zsically to the astuteness of the _ people ~nd th~ business enterprises, and evaluation of the true worth of MITI prob~~bly mu~.t await the fu[~~re. He also pointed out some dangerous sig~~s concerning MITI which preclude optimism, such ~is its increasing adhesion to pol~tical parti.es like the Liberal Democratic Party, from which it previously kept a certain distance, and MITI's impotence concerning structural changes in the sl.uggish pulp and cement industries. Sense of Crisis Among Y~un~ Bureaucrats Incidentally, thEre is a strong sense of crisis among the younger bureaucrats. I met a number of young assistant section chiefs (who joined the ministry in 1972-73) of the various bureaus, who invariably said: "Section chiefs think only abo~:ct associating with politicians and do not ser~ously study the industries,. so they end up becoming naive optimists." "How can we give guidance to a business concern which singlehandedly records sales totallin}; several tri]_lion yen? Also, within 12 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 APPROVED FOR RELEASE: 2407/42/09: CIA-RDP82-40850R000500430022-9 - FOR OFFICIAL USE ONLY tt~e };uv~rnmeiit structure 1.tself, we oft:en penetrate the ~urisdiction .of other ministries and agencies, but in moat cases we lose out.~' The assistant chiefs, who have been given first-line management responsibility truly believe that the founda- tion of MITI is unmistakably sinking. There is a clear gap between the previously mentioned contention of the middle-level bureaucrats and the opnions of the younger bureaucrats. What is the actual state of MITI administration and its indsstrial policy? And what are MITI's goal and direction? MITI Is a Product of Japanese Soil ~ When LDP parliamentarian Yoshiro Hayashi, former MITI bureaucrat (his last post in 1950 was chief of the Industrial Machinery Section), visited France immediately after the French presidential election, the newly elected President Mitterand's special assistant reportedly said: "France would like ro organize a ministry like MITI and embark on a full-fledged industrial policy." Also, the United States _ has promoted the "MITI-zation" of the Department of Commerce since the Carter administration. There is strong interest abroad concerning MTTI, and there are some Japanologists who are making special studiea of MITI. The reason is perhaps bec~ause they believe MITI has played a large role in Japan's miraculous resur~ence aricl remarkable economic development. According to Vice President Yugoro Komatsu of the Kobe Steel Corporation (administrative vice minister in 1944), MITI was labelled the "notorious MITI" in the late 1950's by the United States and European countries for resisting the liberalization of car imports. Does this mean that their appraisal has changed? The U.S. Commerce Department has 36,000 employees (MITI has about 14,000 employees). Its main functions are centered on compilation of stat3stics, including industrial statistics, economic growth rates, direct overseas invest- ments, and procurement of supplies and materials. In addition, it handles licensing of exports to communist-bloc countries, but it handles very few so-called policy matters. However, due to administrative reforms late in the Carter era, there was a sudden move to strengthen the fu~lctions of the Commerce Department as a means of building U.S. industry. It was a notable turnabout from a laissez-faire policy to government intervention i~i tra,de and industrial policies. As the first step in the r.eform: 1) industrial protection operations (antidumping and contravening duties) handled by the Finance Bureau were transferred to the Commerce Department; 2) ttie bureau was expanded fio promote exports; and 3) the control center for commercial attaches assigned to the State Department's overseas missions was transferred to the Commerce Department. . However, with the advent uf the Reagan administration, the tempo 3n the buildup of the Courmerce Department slowed down. This is probably because the Reagan policy of fostering the gr.owth of free enterprise is incompatible with an increase in government controls. Cn addition, Americans.with outstanding potential have traditionally aspired to employment with ma~or private enterprises or to the 13 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030022-9 APPROVED FOR RELEASE: 2007/02109: CIA-RDP82-00850R000500030022-9 rvn V/'~'~