JPRS ID: 10428 JAPAN REPORT

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APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500054004-7 - FOR OFFICIAL USE ONLY JPRS L/1042~3 1 A~ril 1982 - Ja an Re ort p p - ~F0~0 2~~82~ FBIS FOREIGN BROADCAST INFORMATION S~f~VICE FOR OFFICIAL L'SE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 NOTE 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 translat-:d; those from English-language sources are transcr ibed 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 [TexcJ or [Excerpt] in the first line of each item, or following the last line of a brief, indicate h~w the original information was - pracessed. Where no processing indicator is given, the infor- mation was summarized ~r extracted. Unfamiliar names rendered phonetically or transliterated are enclosed in parentheses. Words or names preceded by a ques- � tion mark and enclosed in parentheses were not clear in the original but have been supplied as appropriate in context. Other unattributed parenthetical notes withi,~ the body of an item origina te 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 at.titudes of the U.S. Government. ~ 7 CJPYRI(~iT LAWS AND RE~ULATIONS GOVERNING OWNERSHIP OF MATERIALS REPRODUCED HEREIN REQUIRE THAT DISSEMINATION OF TH IS PUBLICATION BE RESTRICTED FOR OFFICIAL USE ONLY. APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R440500050004-7 FOR OEFICIAL USE ONLY JPRS L/10428 1 April 1982 JAPAN REPORT CFOtro 2 0~ a 2~ t',ONTENTS POLITICAL AND SOCIOIAGICAL Factors Affecting Suzuke Reele~:tion As LDP President Analyzed . (Takao Iwami; USHIO, Mar 82) 1 MILITARY ~ LDP Eyeing Military Satelitz (MAINICHI SHIMBUN, 10 Max 82 ) 8 ECONOMIC 'ASAHI'On U.S. Call For Opening Japan's Markets (ASAHI EVENING NEWS, 12 Max 82) 10 Automobile Paxts Industry Activities Reported (Various sourcAs; various dates) 12 Dull Business, Fierce Competit ion Manufacturers'Survival Strategy Detai~ed Kayaba Industry Co., Ltd. U.S. Japan Traat Conflict Industry to Div~rsif~ Nissan Motor C~., Ltd. Sr_eelmakers Plan to Expand Facilities (NIHON KEIZAI SHIMBTJh~ 9 Max 82) 21 Country Must Find Permanent U.S. Trade Measures (Konoe Kawagishi; THE DAILY YOMIURI, 9 Mar 82) 23 SCIE'_`dCE AND TECHNOLOGY 'MAINICHI'On Crisis Facing L~aw of Sea Conference (Editorial; MAINICHI SHIMBUN, 9 Mar 82) 25 _ - a - [III - ASIA - 111 FOUO] FOR OEFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000540050044-7 FOR OFFICIAL USE ONLY 'ASAHI'Lauds Revised Japan-Australia Nuclear Pact (AS~II EVENING NEWS, 13 Mar 82) 27 Delays in 57 Power Generation Pro~ects Reported (MAINICHI DAILY NEWS, 10 Mar 82 ) 29 Fu~itsu Develops 5,000 Gate Array For Semiconductors - (DIIVPA SHINIDUN, 10 Feb 82) 3~ Japan To Develop 5th Generation Computer (NII4CEZ SANGYO SHIMBtIN, 4 Jan 82) 32 Test Stage of High Speed Linear Motorcax Describ ed (SHtIItAN TOYO KEIZAI, 6 Feb 82) 35 Trend Toward Widespread Factory Use of FMS Described (NIKKEI SANGtO SHIMBUN, 1,6 Jan 82) ~+2 Entire Machine Industry Fu~i, Fu,jitsu Group Joint Venture Relaxation of Recombina.nt DNA Guidelines Recommended (NIKKAN KOGYO SHINiBiJN, l~+ Jan 82) ~+7 Recent Biotechnology R&D Reported (Various sources, various dates) 50 Artific~.al DN~!. STA's Holonic Function Research Interferon Mass Production Briefs New Meteorological Satellite 5~ -b - ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 FOR OFFICIAL USE ONLY POLITICAL AND SOCIOLOGICAL - FACTORS AFFECTING SUZUKE REELECTION AS LDP PRESIDENT ANALYZED Tokyo USHIO in Japanese Mar 82 pp 264-69 [Article by Takao Iwami, MAINICHI SHIMBUN reporter: "Suzuki Regime Agonizes Over Financial Reconstruction Without Tax Increase"] ' [Text] Reports of Current Policies Eventually Komoto will leave the cab inet due to dtsagreement = with Suzuki over economic management policy, which will lead ~ to a political upheaval. - Fukuda Predicts a Major Uphe~val In contrast to last year, which passed peacefully without any major dispute, the forecast of "cloudiness followed by a rainstorm" seems more appropriate for 1982. Since early this year, ominous rumors of a"major upheaval" have been circulating here and there in political circles, which is unusual. One of the Liberal Democratic Party's (LDP) top leaders, former Prime Minister Fukuda, ref erring to the upheaval theory said (on 13 January at a general meeting of the Fukuda faction): "A storm is brewing this year. There are rumbles in the skies and we should refrain f rom rash and impulsive actions. Rather, we should carefully watch the movements in the skies and act accord- ir.gly." Meanwhile, the leaders of the various opposition parties are also predicting a major political upheaval. The lineup of sides has gradually become clear. It is safe to say that f orces critical of Suzuki within the LDP (the Fukuda, Komoto and Naka.sone factions are still observing the situa- ~ tion) and the majority of the oppasition parties are anticipating a major turmoil, while the Suzuki-Tanaka coalition hopes to pacify any rumblings. The outlook among Fukuda faction cadres is that "a ma~or upheaval appears likely, but so far no one is personally trying to ignite a fire. The reason is that there a:a so many uncertain factors. Nevertheless, conditions are such that, once a fire is lit, it could lead to a major conflagration." And, despite refutations by the Tanaka faction cadres that "although a ma3or upheaval would b e unavoidable if the prime minister were to stumble over administrati~ ~ reform or financial and political policy issues, the prime minister is an old campaigner whb would probably ride out the storm; 1 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R004500050004-7 FOR OFFICIAL USE ONLY ~ historic~:?ly, there has never been a major upheaval during the Year of the Dog," tnere appear signs of uncertainty. Both sides recognize that the political situation is not lacking in disruptive factors. Moreover, the complexity of the political scene in 1982 probably is due to the fact that a policy confrontation has been joined by a political struggle. It is not merely a factional strife over the power of rule: an issue of policy choice centering on economic management is also closely involved. First, a look at the makeup of the political struggle shows a gradually aeveloping split into two forces within the LDP over Prime Minister Suzuki's reelection. Suzuki's term of office will expire in late November and r.e is of course seeking reelection with support from the Tanaka faction. Prior to the party and cabinet reshuffle at the end of November last year, the relationship between the Tanaka faction, led by former Prime Minister Tanaka, and Suzuki was not exactly smooth. The reason was that in order to keep a balance with the Tanaka-Fukuda forces and maintain equilibrium between Suzuki, Tanaka and Fukuda forces, Suzuki tried to stay neither too close nor - too distant from Tanaka. Nor was Tanaka very energetic in his support o= Suzuki's reelection. However, Tanaka needs a stable goverr~ment and party leadership structure under his control in order to overcome the crisis he faces in the Lockheed trials. On the other hand, Suzuki believes that the full support of the Tanaka faction--th.e largest LDP faction--is indispensable for his own - reelection. As a result, the interests of Suzuki and T~naka are in complete agreement and the outcome was the appointment of Nikaido as secretary general, as well as the appointLnents to the party's top positions in favor of the Tanaka faction under Nikaido's leadership. The lineup in preparation for the ~ reelection centering on th~ Suzuki-Tanaka forces has thus been boldly consolidated. Of course, the balance between the Suzuki, Tanaka and Fukuda factions has been eroding. The critical posture of the Fukuda faction toward Suzuki has inten- - sified since the November cab inet reshuffle and portends trouble to the point where Fukuda has predicted "a ma~or upheaval." However, the Fukuda farces are clearly no match for the Suzuki-Tanaka coalition from the standpoint of numbers. While the competitive strength of the Tanaka faction in political - struggles has already been proven and Suzuki's reelection appears to be on track, it is not that simple. There are several factors which may impede his reelections. Suzuki Reelection Not On Track First, the direction of the Nakasone and Komoto factions and the Nakagawa group which follow the three major factions--the Suzuki, Tanaka and Fukuda factions--remains to be seen. Nakasone (Administrative Control Agency direc- tor), Komoto (Economic Planning Agency director) and Nakagawa (Science and Technology Agency director) were all reappointed in the November reshuffle and they are thus tied down to the cabinet. Especially Nakasone, who is in charge of promoting administrative reform, has been rendered i.mmobile. If Nakasone 2 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 FOR OFFICIAL USE ONLY and Komoto pass up the party presidential election late this year, they migtit have to forfeit their chances in the presidential race for good. Already a group of new leaders, around 60 years of age, have their sights set on the "second next presidential race," and the view is that after next year there will inevitably be an increasing tendency to shelve Nakagawa. Especially for Komoto (70 years old), this is the last chance in terms of his age, and a challenge of Suzuki by him this year is considered to be a strong possibility. Komoto's greatest strength lies in his outstanding party support. The breakdown of the approximately 1.1 million registered party members is reported to be as follows: Komoto faction, 400,000; T~naka factian, 300,000; Suzuki faction, 200,000; Fukuda faction, 100,000; and Nakasone faction, - 100,000. The party presidential primary, in which the entire party membership participates, has been weakened by th~ recent structural reform which stipu- lates that: 1) a full election will not be held if there are less than thr~e candidates, in which case the party president will be elected by party Diet members; 2) a candidate requires endorsement by 50 or mcre Diet members. The Komoto faction thus has few opportunities to utilize its superiority in numbers, hecause at present it is diff icult to hypothesize a case where four or more candidates endorsed by 50 or more Diet members can be fielded. However, hypothetically speaking, if S;izuki, Fukuda, Nakasone and K~moto were � to run, Komoto would compete with Suzuki for suprema.cy in the primary. It - is certain that the Komoto factior. by its sheer numbers would exert no small - influence on a presidential election limited to Diet members. If a unified candidate is fielded by forces seeking to prevent Suzuki's reelection and it results in a"Suzuki versus Komoto" race, Suzuki could not afford to be optimistic, depending on the circumstances surrounding the presidential election. Second, there is the shadow cast on a Suzuki reelection by the Lockheed case. Of course, Suzuki's reelection is planned "without Tanaka," and Tanaka is gradually being driven to the wall by the Lockheed affair. There is strong conjecture that the ruling on Tanaka in the first trial (Marubeni conduit case) will be delayed until after the party presidential election, but the decision on the bribery recipients through the All-Japan Airways pipeline (Tomizaburo - Hashimoto and Takayuki Sato) is scheduled for this spring, while the prosecu- tor's case against Tanaka will be started around this summer. In each case, political circles will no doubt be agog with excitement concerning "Tanaka's role in the Lockheed scandal," and Suzuki, who is supported by Tanaka, will ' suffer a decline in his image. It shoald cast a considerable burden on his preparations for reelection. The third factor is Suzuki's faux pas regarding policy matters, and this is inevitable as we will explain later, albeit a matter of difference in degree. While there have sometimes been severe years both externally and domestically Suzuki's inflexible "politics of peace" will probably show various signs of unravelling. This will provide opportunities for attack by forces seeking to stop Suzuki. 3 ' FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000540050044-7 FOR OFFICIAL USE ONLY However, this doesn't mean that the "Suzuki-Tanaka" forces, who are adroit fighters, will observe this situation from the sidelines. Late last year, they made an initial attempt to contain the situation by spreading news of "a cabinet dissolution within the year, plus a general election." Ordinarily, a so-called "dissolution threat" is used by a prime minister as his strongest weapon in manipulating the political situation, but on this occasion the newg was s~,read by the Tanaka faction, which is unusual. The opposition camp was the f irst to react to the news. The Japan Socialist Party (JSP) and other parties commenced election preparations, albeit from a prone position. One opposition cadre (secretary general of the Yamaguchi branch of the New Liberal Club) even revised the slogan of "a decisive political showdown in 1983" to publi~ly proclaim "a decisive political show- down in 1982." The view was seriously expressed that "the election will be disadvar~tageous to the LDP after Tanaka is indicted in the first trial. A cabinet dissolution will theref~re not be possible for some time. For this reason, chances are strong for a dissolution within the year--that is, immedi- ately before or af ter the LDP presidential election in November." Meanwhile, an opposing view has been expressed: "Chances are extremely small for a dissol.ution within the year. There are some in the Fukuda faction who say they will not permit a dissolution and will force a change in government. The possibility of a government change is greater." In any case, menories are still fresh of the nightmarish joint Upper and Lower House elections the year before 3.ast. The spectacular fea.t of the IDP in turning disaster (intraparty strife and Ohira's sudden demise) into fortune by tripping up the opposition was reportedly schemed by Tanaka, and the political world is ~arapped in a kind of fear that "one can never tell what Tanaka might be up to." Therefore, the threat of a cabinet dissolui:~~n did have an effect. Moreover, in addition to the reason that a Tanaka conviction would be disadvantageous to the LDP, it is inferred that, if the stop-Suzuki forces should start to move, they would be crushed by a cabinet dissolution. There- fore, the dissolution threat has added realistic significance. Regarding r_he dissolution theory, Fukuda stated during his Manila visit (on 17 January): I b elieve there will not b e any dissolution. There will be various changes in the political situation during the latter half of this year. I don't know exactly how it will changs, but there won't be any disso- lution, regardless of the nature of the Tanaka court case. It will not be necessary. The LDP holds the power of dissolution. As far as an LDP victory - in the election is conCerned, it is not clear at this point." He appears resolute in ruling out any dissolution, but his statement that "the LDP holds - the power of dissolution" is interesting. Perhaps he meant that he will not leave any dissolution up to the Tanaka faction. Three days later, on 20 January, Secretary General Nikaido addressed a joint national convention of the LDP's women and youth divisions. He tentatively denied the dissolution theory, saying: "The newspapers are writing about a dissolution in the fall, but the LDP's mission is rather to rack its brains to fulfill :its responsibility (to cope with such difficult issues as the 4 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-44850R000500050004-7 FOR OFFICIAL USE ONLY removal of trade frictions) This probably sLemmed from a sense of caution that if the Tanaka faction persists in its forceful tactics at this time, then intraparty elements might be pushed into the anti-Tanaka camp. In any case, the statements by Fukuda and Nikaido on the cabinet dissolution could be interpreted as "light jabs made in the first round." There is no doubt that wbth each successive round the exchanges between the two sides will heat up. Unforeseen situations could appear in succession and, while the party presidential primary might be sidetracked, it would be increasingly difficult to hypothesize a smooth Suzuki reelection without a rival candidate. It is difficult to predict whether the rival candidate will be Komoto, Nakas~ne or Fukuda himself. It is unlikely that a new leader will suddenly appear, but is cannot be entirely ru].ed out. In any case, af ter next spring when the nex*. f iscal budget is established, the tension in political circles will rise, centering on the fate of the Suzuki reelection. One can also expect two or three rumbles of a cabinet dissolution. Resignations by Komoto and Nakasone Possible : The major reason for the Fukuda faction's view that a Suzuki reelection is in jeopardy is that it sees Suzuki with his back to the wall regarding policy matters. In a speech in Tokyo on 13 January, Fukuda made the following f ore- cast: "If the FY-81 budget should show a broad revenue shortfall, it will directly become a political issue on the basis of economic mismanagement. This will develop into an issue of political concern." Chairman Takeiiri of Komeito also stated (at the party Central Executive Committee meeting on 11 January): "This year will be a crucial year with a huge load of issues, including trade,friction, administrative reform, the treat- ment of an unbalanced budget and the direction of the Lockheed case. Particularly regarding economic policy, there is concern that there may be a revenue shortfall between Ma.y and July, and a potential political upheaval." As the first example of Suzuki's mismanagement, the revenue shortfall problem has already been pointed out by opposition parties. It is a serious problem which Suzuki cannot consider lightly. That is, the tax revenue in FY-81 slowed down because of the business recession--especially the stagnation in domestic demand. Even when taking into consideration a future business recovery and full corporate tax revenues , in the March accounting settlement, there is a strong possibility that an annual revenue shortfall of some 1 trillion yen is unavo3.dable. The supple- mentary issuance of 375 billion yen worth of deficit national bonds late last - year as an emergency measure for the supplemental budget has ~ust been subjected to severe criticism as a violation of Suzuki's public commitment. An additional shortfall of approximately 600 billion yen is said to be likely. If this is true, his political responsibility for a"misjudged forecast" will - immediately become an issue. ~ - FOR OFFIC?iAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/42/09: CIA-RDP82-00850R004540050004-7 FOR OFFICI,4L USE ONLY ; Tt~ere are rumors that the crisis will be overcome through the resignation of ; rinance Minister Wata~abe, but that will certainly not resolve the issue. ~ Moreover, there is a strong possibility that the tax revenue for FY-82 will j fall considerably short of the government's forecast. If the forecasts for ; both fiscal budgets prove to be in error, the distrust o~ Suzuk~'s ee~nomic i management will surface~~and the formation of his "f inancial reconstruction ~ without a tax increase, on which he has staked his political life, will be ~ shak~, ~n . There was a strong premonition of such a turn of events on 20 January during ~ the debate on tax reduction at the government-opposition liaison conference. Excerpts are given here as follows: , Political and Financial Research Council Chairman Hashimoto: "The lowering of income taxes has recently become a hot topic and the question is beginning to be raised among those involved in administrative reform whether administra- tive reform should bovementdofetheSeconomyy, The inf erencerhere issperhapslto be given to the impr anticipate moves by the opposition." Prime Minister Suzuki: "No matter how diff icult they may be, administrative reform and f inancial reconstruction are national tasks. If we lose this opportunity, they will become impossibl~ to handle. We cannot afford to pass up this opportunity. In such a s;tuation, it makes Sbu~eit�WOUldlnot dowtoe c~n create an atmosphere conducive to tax reduction, let tax reduction slow down administrative reform." Economic Planning Agency Director Komoto: "At his press conf erence in Ise, the prime minister used the apt phrase (regarding tax cuts): 'when prospects for a~'ministrative reform and ~financial reconectsCbeco eecertainf lrather than believe it is better to say when their prosp to say 'we will not reduce taxes until administrative reform is completed."' Suzuki: "In any case, the FY-82 budget draf t is a joint compilation resulting from cooxdinated ons~for taxtreductionmpurposes)his absolutely outrof~the any tampering (revisi question." Komoto: "If so, ways to increase annual revenues can be found." In a speech on the same day, Komoto said: "In Japan's tax structure, there is a lack of balance between direct taxes and indi~ect taxes. The time has come to improve the balance between the two." He thus clarified his stand tl~at a tax increase through indirect taxes should be considered as quickly as possible in order to build a base for income tax reduction. In other words, Komoto's target is an expanded economy from the standpoint of improvin~ business con- ditions, and he advocatesis difficult,ihe says,ythere isnnolalter ativeeexcept indirect taxes. 7:f this further the period of financial reconstruction. On the other hand, Suzuki has made a public commitment for "a financial reconstruction without a tax increase," and he puts a time limit on the 6 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500054004-7 FOR OFFICIAL USE ONLY reconstruction period "until FY-84." He has thus adopted the line of a tight economic policy. If he accepts Komoto's contention, iuzuki must be prepared to renege on his public pledge thus putting himself ii: a dilemma. Moreover, the f ive opposition parties and four labor organizations have merged in a joint struggle this year for the f irst time regarding a 1-trillion-yen ~ tax cut, and they are taking an unprecedentedly strong stand. They appear likely to present an ultimatum, demanding the promise of a drastic tax cut in FY-83, if not in FY-82. As far as the Ko~oto line is cor.~cerned, there is room for adjustment with the opposition's demand, but is is unacceptable to Suzuki, who gives top priority to administrative reform. The opposition would probably attack this intracabinet confrontation as soon as the Diet reopens, and Suzuki might find himself in a q~andary. There is also spreading specualtion within the LDP regarding the Komoto statement that "although they may not immediately commence anti-Suzuki moves, there are people who are so inclined. If the budget for the next fiscal year is accepted, the political situation will also change drastically. The statement was therefore intended to clarify the divergence in the policy li~e in preparation ior such a change." There are not a few who believe that Komoto will eventually leave the cabinet, citing the disunity over economic management as the reason, and `hat this will serve to ignite the political situtation. It might be said that Komoto holds an important key which couLd sway the political trend. The annual revenue shortfall, the policy confrontation between Suzuki and Komoto over a tax cut and the extraordinary administrative investigation hearings are weighing heavily on Suzuki's shoulders. The extraordinary hearings committee, in its reply last summer, appeared ready to demand that Suzuki "re~~iuce taxes, using cuts in annual expend3.tures as the base, inste~d of raising taxes and extending the period of financial reconstrciction." From the committee's standpoint, such a reply would be consistent with the funadmental concept of essential administrative reform. But to Suzuki it would be close to an impossible task. It is clearly beyond Suzuki's political power. Thus his confrontation with Chairman Doko will become further aggravated. At the same time, the worst possible situation, Doko's resignation as well as Nakasone's resignation, could arise. There is more. How to cope with trade friction and the issue of rising defense spending. Japan-U.S. relations could become stormy with a single faux pas. Doe~ Suzuki's diplomacy have the ability to overcome these issues? Literally, "a year of tribulation" awaits Suzuki, who has somehow adroitly managed to survive through his "politics of peace," and Tanaka, who has supported him from behind the scenes. COPYRIGHT: USHIO SHUPPANSHA 1982 5884 CSO: 4105 /6~+ 7 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 r^OR OFFICIAL USE ONLY MILITARY LDP EYEING MILITARY SATELLITE OW121355 Tokyo MAINICHI SHIMBUN in Japanese 10 Mar 82 Morning Edition p 2 ["Reporter's Box" column: "'Reconnaissance Satellite' Plan La~ched"] [Text] A plan to launch a reconnaissance satellite of Japan`s own for military use is under debate in the Liberal Democratic Party. In hi~ so-called theory of national defense at sea, Prime Minister Suzuki calls for arming the country with spines like a hedgehog and repelling external enemies at the water's edge. The satellite plan is, so to speak, to serve as the - hedgehog's eye and help discern the accurate mili~ary situation from space. The plan was advocated by Taro Nakayama, who recently assumed the post of chairman of the Liberal Democratic Party's-Special Committee on Space Development. Nakayama, formerly director geizeral of the prime minister's office, who touched off a criticism of the Japanese Academic Council, appears to aspire to take the lead of scientists in having a crack at space develop- ment. If the satellite launching plan,materializes, Japan will become the third country to possess a"security satellite" after the United States and the Soviet Union. The photo reconnaissance satellite is designed to monitor the Soviet military situation in the Far East by photography. Japan is getting information on Soviet military deployment to the four northern islands from t,.=. satellites: But, in case of eu~ergency, borrowed data wi11 not do. If Japan posses;;es its own satellite, it will be possib le to see the develop- - ment of the situation moment by moment,.and even identify the license plates of cars. Hence, Nakayama stresses, to Japan which arms itself solely for self-defense, the satellite is quite appropriate, in that it will help prevent a war." '1'he question is: Whether to build it using Japanese technology or to seek U.S. techi~ology? Recently Nakayama visited the United States as a member of the Ezaki mission. During this visit, he consulted ~aith U.S. officials concerned, who rather asked Japan to provide more of its technology for space development in the United States. 8 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-44850R000500050004-7 FOR OFFICIAL USE ONLY Tt costs about 20 billion yen to launch a satellite, equivalent to the price of two F-15's. At a time when Diet proceedings get entangled over funding for requipping a F-4 phantom on a trial basis, one wonders how this idea of launching a security satellite can possibly materialize. However, Nakayama himself was dead serious when he said, "If we can get U.S. technical coopera- - tion, it will help reduce Japan's trade surplus." He is scheduled to leave for Europe ~in 12 March as a memher of a Japanese mission to find ways of easing trade friction. Will the Diet approve this scientific Dietman's proposal, busy as he is with data control, using personal computers installed in the Dietmen`s hall? (Hiroshi) COPYRIGHT: Mainichi Shimbtmsha 1982 CSO: 4120/199 9 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 1'111~ VL'L'll+la7L UJL vl\a~l ~ ECONOMIC 'ASAHI' ON U.S. CALL FOR OPENING JAPAN'S MARKETS OW131119 Tokyo ASAHI EVENING NEWS in English 12 Mar 82 p 5 [ASAHI SHIMBUN 11 March Editorial: "U.S.-Japan Trade"] - [Text] The position of the U.S. Government on the "opening of the Japanese market" has been made very much clearer in the hearings that have been held since the beginning of this month in the U.S. Congress and in the meetings of the U.S.-Japan Trade Subcommittee in Tokyo on 9 and 10 March. The U.S. undersecretary of commerce, Lionel Olmer, told the public hearings . in Washington that the closed nature of the Japanese market is a natural consequence of the relationship between Japanese Government and industry, a relationship that results in non-tariff barriers that encourage and protect domestic in dustries. . The deputy trade representative, David MacDonald, said in the Tokyo meetings that the world believes that the Japanese Government acts to.restrict imports. He said that the U.S. expects to see imports of soda ash, paper and pulp, ~ and medical equipment to Japan increase. He went on to say that definite policies should be presented by Japan. Both the United States and Japan are u.Lhappy about the growing differences in their economic relations. The solution of these differences requires a calm response. Japan should begin to review, as soon as possib le, its restrictions on imports and those aspects of its economic system that are perceived as resistant to foreign penetrati.on. Though it may be possible to create an environment more conducive to the activities of foreign enter- prises here and to imports, it will be quite difficult to take the "dramatic steps" that the U.S. side expects. ' 'I'l~e `1'rade Subcommittee has decided to hold working level discussions on the issue of import restrictions on 22 agricultural products from next month. ln Uctober, consultations will be opened to decide import levels for beef and orange juice. Japan must put its energies into developing a competitive agricultural sector and should try to eliminate import restrictions as far - as is possible. 10 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 FOR OFFICIAL USE 0~1LY But it must be said that all the restrictions cannot be removed at a stroke, in the manner hoped for by the United SCates. Agriculture in every country, including the United States, is to some extent protected by governmental policies, and it cannot be treated in the same way as other sFCtors. Sc it is important that there should be a place where tbe experts of each side can thrash these matters out. If the United States is to be made to under- stand the situation of Japanese agriculture and the efforts that are being made to open the door in this sector, frank explanations have to be given. The U.S. Commerce Department regards a variety of matters as falling in the category of nc.i-tariff barriers, extending from government monopolies such as that on tobacco to government-assisted projects, activities resembling cartels and even preconceptions of the inferiority of foreign products. These complaints are not all off the mark. For example, Japan should re- examine its government monopoly on tobacco so that imports of foreign tobacco products can grow. Policies for depressed industries and the distribution _ sector should be pursued xn a manner that does not encourage allegations that foreign products are being kept out. Abuses of administrative guidance should be scrupulously controlled ir. the supervision of the financial, securities and insurance industries. However, several assert~ons_. have been made duri.ng the hearings in the U.S. Congress that are based on the mistaken assumption that American standards are standards for other nations as well. Japan must respond to the U.S. demands, but inasmuch as our societies differ in ways that cannot l~e changed, it is reasonable that certain demands should be re~ected. A domineering attitude toward Japan can be seen in the U.S. Congress, and one-sided pressure on Japan risks arousing anti-American sentiments here. We hope that the U.S. Government recognizes this and acts accord3n gly. Arthus Dunkel, director-general of the General. Agreement on Tariffs and Trade _ (GATT), criticized in a recent speech the tendency in Europe and the United States to blame the economic recession on Japan. Dimkel said that "the only permaner..t solution to the so-called `J~panese problem' is for the Western economies to raise their productivity to Japanese levels, to accept the challenge." We hope that the Reagan administration listens to these argu- ments and shows itself more willing to check the reciprocity legislation ~ that is before the U.S. Congress. COPYRIGHT: Asahi Evening News 1982 CSO: 4120/195 11 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 FOR OFFICIAL USE ONLY ECONOMIC AUTOMOBILE PARTS INDUSTRY ACTIVITIES REPORTED Dull Business, Fierce Competition Tokyo NIKKAN KOGYO SHIMBUN in Japanese 1 Jan 82 p 12 [Text] ~e auto parts industry predicts that the 1982 domestic and overse~s automobile; ~sles will be about the level of 1981. This forecast is based an the likelinood that the self-imposed export restrictions to the United States ~ will continue in effect into 1982 and that pressure from the EC countries f~or similar "self-control" will increase. The domestic sales outlook is bleak ~~s well. If there is growth in automobile sales, there will be no increase in orders from finished car manufacturers to the parts makers. It is expected that 1982 will be even more severe than 1981. "When the auto industry was in a high-growth stage, cutting costs by increasing production was possible; i~: a low-growth phase, effecting cost reductions is quite difficult. In 1982, a business climate even more stringent than 1981 is anticigated, and the parts makers must follow a policy of further belt tightening." (Japan Autamobile Parts Industry Association Chairman Shogo Tsuru) The industry, therefore, is c:alling for extraordinary entrepreneurial efforts. The biggest reason is that when the finished car manufacturers' production - volume is decreased, unless there is efficient production, the merchandise produced will be expensive and the profit base will be lost. It is also fully - anticipated that the cost of materials will rise in 1982, and there is a good possibility that~ sandwiched in between the cost-down demand from the finished car manufacturers and the rise in the cost of materials, the parts makers' anticipated profits will be last altogether. Thus, many auto parts makers are considering replacing their machines even though amortization is many years away, if there is efficient equipment to be had. It appears, therefore, that investment will exceed the 1981 figure. Overseas expansion in the sense of new market development is also likely to be emphasized. This is in response to the southeast Asian countries; move to in- crease their domestic auto production, as well as an attempt to expand auto parts sales to the United States and developed countries of Europe. "The current state of Japanese business--especially the auto parts business--is characterized by a relatively low ratio of export. This must be given a new turn." (Kinugawa Rubber Industry President: Shojiro Fu3ita) This view re- flects the parts companies' plans to put their overseas strategies into action 12 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 FOR OFFICIAL USE ONLY in 1982. Speaking of overseas expansiea, subsidiary production in the United States is likely to grow in 1982. Overseas production programs by Honda Motor Co., Ltd. and Nissan Motor Co., Ltd. are about to commence. The parts r~akers that had been shying away from a decision must seriously consider this _ alternative. There are many auto parts makers that cannot establish an overseas base be- cause of their business scale and they will most likely try to cultivate either new areas of operation or new products. Of course, the major research and - development sectors capable of overseas expansion are planning considerable investment input. Needless to say, they will seek to develop new products that conform to the requirement of less weight put forth bq the autQmobile manufactur~rs. Parts makers will try to survive a tougher 1982 with (1) operational rational- ization, (2) overseas strategy, and (3) new products development. It is quite probable that as one w.sy to ride through this tough phase, some parts makers would opt to merge. COPYRIGHT: Nikkan Kogyo Shimbunsha 1982 Manufacturers' Survival Strategy Detailed Tokyo NIKKEI SANGYO SHIMBUN in Japanese 1 Jan p 8 [Text] As a result of curbs on exports and decreased domestic demznd, the automobile industry which has had con- tinuous higt~ growth is leveling off. Increased production was the source of growth for the auto parts makers and thus, the new year's outlook is not a rosy one. Moving from "the era of competitive high growth to a race for survival era (Japan Automobile Parts Industry Association Chair- man: Shogo Tsuru)," the ma~or parts manufacturers are uniformly starting to strengthen their business structures. Review of secondary subcontractors who provide basic strength to the group, strenghtening subsidiary and overseas based operations, re-consolidation of the company's internal labor force and production process, and cultivation of new business by launching other industries are some avenues being explored. In another words, a shape-up strategy for a slower paced era is under way. Number of Auto Parts Makers to be Whittled Down to ~tao-Thirds Last year, the ma~or automobile manufacturers significantly changed their thinking. They clearly set forth a reorganization policy for the auto parts industry which had been left to grow and expand in an unchecked fashion. The representative view set forth was that "in terms of the future, there are too many auto parts makers (finished car manufacturers' primary subcontractors) and that the number would eventually have to be cut to two-thirds." (Toyota Motor Co., Ltd.) 13 . FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000540050044-7 FOR OFFICIAL USE ONLY Mitsubishi Auto Ir.asstry, Honda Motor Compai~y and others struck with a"one- third ~ut back of cooperating parts makers." In th~ name of "requests" for lower costs, increa~ed technological skills and stronger business structures, the f ii,~shsd car man.ufacturers are applying pressure on the parts makers daily. The brunt of the pressure from the auto makers is being borne by the major = parts manufacturers. How will they relay the message to their sub-contrac- tors? The reorganization of auto industry's pyran~idal structure actually refers to the reorganization ~f the subsidiary and sub-contracting system by the major auto parts manufacturers. "The finished car manufacturers will pass their losses on to us parts makers on a scale unprecedented he:-etofore. How wi11 the major parts makers absorb it? A great hurdle has bean placed before us--a~hurdle that has to be sur- mounted by secondary sub-contractors as well." (NHK Spring Co., Ltd Chair- - man: Seishun Fu3ioka) Leading businesses have begun reviewing their resp~ec- ti~e operating structures. The most severely affected are parts makers supplying tuucks. Tokyo Parts Industry Chaiman Karo Shimada says that, "Our firm's outside order ratio is low, but we must reconsolidate sub-contracting procedures and re-examine internal manufacturing and outside order categories." An executive of a certain parts manufacturer said with honesty that, "Almost all those below the secondary sub-contractor level are town factories. Unrler the small business protection law, they are protected and we cannot press them too hard; but if we ourselves are backed into a corner, we have to shift the loss on to our subordinate partners." The signs of decline in auto parts manufacturing growth actually became evident a little over a year ago during the latter half of 1980 (October 1980 - March 1981). The Japan Automotive parts Industry Assor_iation gathers and tabulates production volume data from approxi*.aately 310 member businesses. Since the method of classifYcation was changed in 1980, the operation is behind schedule. But a provisional tabulation of the Kanto and Chubu regions' auto parts manufacturers (equivalent to 95 percent of the total) for 1980 shows that the production total would almost certainly exceed the 5 trillion yen mark. Never- theless, the production is leveling off trend during the latter half of the year. That is to say, the trend for the last several years had been a 5 to 10 per- cent production increase during the latter half of the year, compared to the first half. But in 1980, the Kanto/Chubu regions' tally showed a 0.7 percent decline during the latter half of the year in comparison with the first half. (Automotive Parts Industry Association) Moreover, this survey focused mainly on the primary sub-contractors (from the perspective of finished car manufac- turers), and the shifts in production volume of these firms have a high de- gree of correlation to the domestic four-wheel vehicle production trend. A production increase in 1981 is highly unlikely. 1~+ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R004500050004-7 - Streamlining Plants Among the leading parts manufacturers, many have subsidiaries that are really suh-contractors. Akebono Brake Ind;~stry has many such subsidiaries, so it cannot :~imply "cut" its sub-contractors. In such instances, the firm's own curtailment must be all-~ut. Atsugi Auto ~ Parts has adopted a policy of dropping seasonal and temporary workers. Auto- mobile Casting, Keihin Preci~ion Machinery, and Rikeu are building new high efficiency factories or are centralizing work at high efficiency plants in an effort to achieve more efficie~at production. Countering the domestic automakers~ declining demand, the parts manufacturers are starting to emphasize ovprseas export of their products. As shown in the attached diagram, auto parts exports increased by a wfda margin last year. Though the increase ratio dropped somswhat during the latter half of the year, - this trend will undoubtedly continue into 1982. "Nor a business t~ exist as an enterprise, growth, either by increased sales or increased profits must be maintained continuously." (Nichitan Bulb Presidertt: Sadahide Nagano) In the meantime, a desire to expand into fields other than automobiles (the so-called non-auto sectors) is also becoming evident. Starting this year, NHK Spring ~aill initiate full-s~:ale production of goods based on the application of urethene synthetic technology to sir conditioning related equipment at a specialized plant being constructed in Nagano Prefecture. Teikoku Piston Ring this spring will begin mark~ting industrial, ceramic covered dessication equip- ~ ment which employs piston ring technology. Akebono Brake is hoping to exten- sively market aluminum.materials for home interior decoration. Kyowa Alloy is working to develop heat-resistant appliances by recycling emission parts' scrap. As these activities attest, expansion into non-auto sectors is remarkable. In terms of cost factors, the automotive parts manufacturers are seasoned veterans. Thus, these new ventures are beginning to raise cries of a"cost revolution" in non-auto industries. Even the largest automotive parts maker Nihon Denso expresses its future out- look as follows: "For the next several years, all aur energy will be devoted to establishing a 50-percent self-sufftciency ratio in IC's, Th.en we will develop an electronic equipment business slated for non-auto sectors with the goal of becoming a consolidated electronic equipment manufacturer." (President Fubito Hirano) Making inroads into other industries a tactic begun by "~eneral automotive parts" manufacturers--such as Japan Oil Seal Industry's electronic, chemical operations development plan--is a common formula being followed by many private car parts manufacturers. (Reporter: Kawabe) 15 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 FOR OFFICIAL USE ONLY ~ ~ a~~ ' r~~~is-a~ ~ 73 . 3 !t It) ~ 5~~~~ . ~ 55~ (l.~ ~ /6#8i/8 50 52 3/ Figure 1(second column): Japanese Automotive Parts Production, in Transition Rey : 1. Trill.i.on yen 2. 1971, 1973, 1975, 1977, 1979 3. (Automotive Parts Industry Association Survey, latter half of 1980 representis a partial f igure estimate) 4. 1979 first half 5. 1979 latter half 6. 1980 first half 7. 1980 latter half 8fb~#b~Mtbw~ . 4 ~ . " 5 ~l0 ~ � 1 . 1~i t ~ ~ 30 ~ ~ ~ ~ ~3 3 ~~1 � ~~~~~t ~1~ ~z wrt~ ~ iow ~2~ ~.~~81~ 3 5 1 9 ' (~)~Athltlry.M~f1At3FOBF~b. � I~I~~IAltMU~l2%.M~I3~At 6~tt-fi-.e~a~t-i1-o~~it Figure 2(third and fourth column): Automotive Parts Export in Transition Key 1. Export amount, 100,000,000 dollars 2. 1980/1981 monthly average January, March, May, July, September 3. Monthly comparison--growth rate rel~tive to previous year same month 4. Export amount 5. Monthly comparison--growth rate relative to previous year same month percentage 6. (Note) from Customs Survey, The export figure is in terms of FOB dollars. Growth ratio relative to equivalent month/previous year expressed in percent Export figure repregents total for finished car manufacturers and parts makers. COPYRIGHT: Nihon Keizai Shimbunsha 1982 16 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 FOR OFFICIAL USE ONLY Kayaba Industry Co., Ltd. Tokyo NIKKEI SANGYO SHIMBUN in Japanese 7 Dec 81 p 8 [Text] Kayaba Industry Co., Ltd. intends to solidify the relative strength of its non-automotive section by direct export of its oil pressure equipment to the United States. There is increased demand from the industrial machinery sector and there is thinking that enlargement of ti:e automotive sector is not appropriate in the light of friction between the Unii:.d States and Japan over auto exportation. The plaa is to increase the curreat ratio of non-automotive = direct export to the United States (30 percent) to about 40 percent. Kayaba is a ma~or manufacCurer of automotive oil pressure shock absorbers. Its chief direct export item to the United States is this product. The product is sold in the U.S. open market and its sale has been growing at a considerable pace. The sale is expected to increase at ap.proximately 30 percent per annum and the outlook is that the sales will reach the 10 million dollar base for the first time this year. The eompany resolved, however, that it was not ; ' advisable to rely exclusively on the automotive section. COPYRIGHT: Nihon Kei2ai Shimbunsha, 1981 _ U.S.-Japan Trade Confl:'cC Tokyo NIKKEI SANGYO SHIMgUN in Japaneae 10 Dec 81 p 8 [Text] Japan-U.S. Trade Facilitation Commission (TFC) will redeliberate the question of importiation of U.S. made automotive parts at an executive level session this week. It was disclosed on 9 December that the United States is very dissatisfied with the "Japanese finished car manufacturers' parts procurement stance which is the chief inhibitor in expanding importation of U.S.-made parts." The Ministry of International Trade and Industry's response was that "a concrete instance~ought to be cited to illustrate this accusation. Otherwise, it is difficult to judge if indeed the fault is the Japanese car ma.nufacturers'." The matter will be attended to at the executive session. Importation of U.S.-made automotive parts totaled 140 million dollars ia 1979. _ In 1980, the contractual amount was 200 million dollars and the prediction is that the actual import figure will be around 170 million dQllars. However, the "Automotive Parts purchasing Mission" indicated to the U.S. side, when it visited the said countiry in S~eptember of last year, that if possible, Japan would like to import 30Q million dollars worth in 1981. ~ The MITI asseases the lack of growth tn U.S.-made automotive parts importation to be the result of: (1) strong dollar trend during the year seen as a whole; (2) reduction in the relative purchase ratio of parts for private cars slated - for the U.S. market as a result of automobile export restriction to the United SCates; and (3) decrease in automobile sales in Japan. Meanwhile, the Japanese automobile industry's argument is that, "in terms of quality, price and delivery schedule, there is absolutely no reason why we 17 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 FOR OFFICIAL USE ONLY have to buy American products," and that it is unfair to have the responsibility for lack of import growth shifted onto the Japanese automobile manufacturers' _ shoulders under the pretext of the latter's uncooperative ~purchasing stance." According to MITI, the United States is seeking increased importation of the following automotive parts: turbo-charger, catalytic agent, lights and so on. The (Automobile Section) would "like to hear in concrete terms as to which of the acquisition policies of the Japanese manufacturers (finished car makers)-- that is, wh3ch American automotive parts--that the United States is dissatisfied with; and then work out a counter-measure." MITI, however, would like to avoid being pinned dowa to concrete figures such as the 1981 target amount (300 million dollars). COPYRIGHT: Nihon Keizai Shimbunsha 1981 Industry to Diversify Tokyo NIKKEI SANGYO SHIMBUN in Japanese 12 Dec 81 p 1 [Text] Automotive parts makers are engaged in a flurry of activities in an effort to "get out of automotive ties." In response to the rapid decrease in automobile sales, the parts makers are beginning to modify their total dependence on sutomobiles and armed with their strongest weapon--their cost - management know-how--they are recharting their course to electronics, industrial machinery and/or precision instrument sectors. The automotive parts industry is a 4 trillion yen business concern and the industry's dash toward other fields will cause formation of new multiplex marketa ~3s well as create competition and friction in the existing sectors. The largest member of the automotive parts industry--Nihon Denso (Toyota Motor Company Group)--has ~ust initiated a plan for a significantly increased pro- duction of automotive LSI (Large Scale Integration circuits). This is seen by some as the cornerstone upon which the company is planning an entry into the semi-conductor field in the future. This move is already regarded by semi-conductor manufacturers as well as automotive parts makers as a threat. Koito Works, an automotive lamp maker (Toyota Group) and Japan Oil Seal (Inde- pendent), a seal maker, have set out to manufacture and distribute print wiring boards [haisen kiban]. Koito is already producing komaku [transliter- ation] IC (Integration Circuitry) and has begun preparing for production of electronic parts in the United States in cooperation with the Heller Corporation of West Germany. Through its subsidiary--Japan Mectron--Japan Oil Seal is scheduled to enter a joint venture with the U.S. and West German parts manu- facturers in the print wiring board field. Koito and Japan Oil Seal both intend to sell print wiring boards not only to auto manufacturers but to camera, watch and other precision instrument businesses as well. The top manufacturer of automotive fasteners--Niccolo (Independent)--is emphasizing fasteners for electronic machines and is scheduled to begin taking orders in the United States in the near future. Aside from the electronics 18 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 FOR OFFICIAL USE ONLY field, Kayaba Industry (Nissan Motors Group)--a ma~or oil pressure shock absorber maker--is concentrating on oil pressure equipment for industrial machines. It will formalize its expo.t to the United States, and in con- 3unction with this operation, the fiz~m will invest substantiallq in the firm's facilities. Tokyo Welding Factory (Isuzu Motors Group)--a medium size welding plant--has begun producing ashimawari [transliteration] parts for construction machines and has signed a long-term contract to supply the world's largest construction machinery maker--Catepillar Tractors of the United States. Bustling activities such t~s described above are beginning to surface everywhere. COPYRIGHT: Nihon Keizai Shimbunsha 1981 Nissan Motor Co., Ltd. Tokyo NIHON KEIZAI SAIMBUN in Japaneae 15 Dec 81 F~ 8 [Text] In order to streamline parts production format, the Nissan Motor Company began reviewing the division of tasks set up among its affiliated parts manufacturers. This is because the company had concluded that in order to meet the intensified new model automobile development and cost-reduction competition, efficient grouping among the vast number of parts makers and restructuring of manufacturing processes of ma~or auto parts are needed. In. promoting the FF (frontal engine, front wheel drive) for compact vehic~es, Nissan has first of all demanded that Kokusan Metal Industry and Tachikawa Spring Company create a new parts assembly line. Meanwhile, Atsugi Auto~otive . Parts which may lose work volume as a result: of installation of FF is hasteaing to select new parts that it can manufacture. T.;i_ssan disclosed that it had dispatched new commissions to Rokusan Metal and Tachikawa Spring and ordered items which neither of the firms had handled heretofore. Nissan commissioned Kokusan Metal ta produce a finished lock mechanism for car handles. Kokusan Metal is a specialty maker which manuf,~c- tures door handles and automobile keys. Up to now, Kokusan Metal manufactLred the key portion and the structural components of related lock mechanisma~. These then were sent to Kanto Precision Instruments and assembled into finished parts. The transport cost between zhe two firms was one cause o.f the high cost. The gist of the current urder was to let Rokusan Metal handle the entire process from parts manufacture to assembly of the completed merchandise so as to reduce the merchandise flow cost. Nissan also requested Tachikawa Spring to deliver completed ~.utomobile seats. Traditionally, Tachikawa manufactured spring and the seat's structural frame- work; these then were purchased by the completed seat maker--Ikeda Bussan (Main Office: Yokohama) and finished, then delivered to various Nissan auto plants. But automobile seats are bulky items and their transport is one of the most costly among automotive parts. Having decided to carry the manufacturing process all the way to completed seats, all of Tachikawa Spring's finished seats wi11 be applied to Nissan's Murayama Plant (Musashi Murayama City, Tokyo) which is located relatively near 19 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R004500050004-7 FOR OFFICIAL USE ONI ~Y Tachikawa Factory. Meanwhile, Ikeda Bussan will "specialize" for Nissan's Suwama (Suwama, Kanagawa Prefecture) and Oihama (Yokosuka, Kanagawa Prefecture) Plants. In this fashion, a new division of labor assignments among manufacturers delivering ta Nissan has been formulated. Nissan is rapidlq switching from FR (frontal engine, rear drive) format to ~F format. In this type of switch-over, the most damage is sustained by the manufacturer whose propeller shaft production volume would decline drastically. In the case of the Nissan Group, Atsugi Automotive Parts is the firm most adversely affected. Atsugi Parts is anticipating approximately 99 billion yen in sales this year. The reduced propeller shaft production in 3 years will amount to 10 billion yen per year. In order to "cover [ease]" this drastic decline, Nissan assigned the manufacture of compressors for automobile air conditioning units to Atsugi Parts. It is said that Nissan has also entered the final selection process with the view to adding the FF running gear parta to Atsugi's list of manufacture items. COPYRIGHT: Nihon Keizai Shimbunsha 1981 11460 CSO: 4105/40 20 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500054004-7 FOR'OFFICIAL USE ONLY ECONOMIC STEELMAKERS PLAN TO EXPAND FACILITIES OW120623 Tokyo NIHON KEIZAI SHIMBUN in Japanese 9 Mar 82 Morning Edition p 7 [ExcerptsJ Despite signs of a slowdown in the export of seamless steel pipes, Nippon Kokan and other major steel pipe companies have set about expanding their facilities. Nippon Kokan, Nippon Steel Corp and Kawaskai Steel Corp are planning to move up completion dates for their expansion projects now underway while Sumitomo Metal Industries, Ltd, a top seamless steel pipe manufacturer, is to further extend its expansion program. The steelmakers believe that the oversupply--forecaet for the second half of this year and next year--wi11 only be a temporary phenomenon and that the steel pipes trade--mainly in high-class products for oil wells--wi11 become a seller's market by arotmd 1985. This race for seamless steel pipe facilities is likely to continue for some time both at home and abroad. Against the background of an oil development boom in the United States, seamless steel pipes used for such development projects have been in short supply in recent years, and this,situation has served as a treasure chest for Japan's four major steel pipe companies. The facilities expansion projects _ now underway by the four companies are aimed at coping with the future situation, the four companies plan to build facilities with an annual combined capacity of more than 1.3 million tons with investments of about 250 billion. yen. When completed, Japan's seamless steel pipe production capacity will increase from the present 4.2 million tons a year to 5.5 million tons. Nippon Kokan, which is building a seamless steel pipe plant with an annual capacity of 600,000 tons at its Keihin ironworks, plans to move up the date for its completion by about 3 months from the original September 1983. Nippon Steel Corp, which is adding a plant with an annual capacity of 420,000 tons to its Yahata ironworks, wants to advance its com;.tetion, set for March 1983, by a month. Kawasaki Steel Corp, which has nearly completed the second reinforcement plan on its Chita works, wants to~begin the third plan in February, instead of the originally scheduled March 1983. Meanwhile, Sumitomo Metal Industries, which had originatly planned to reinforce its Kainan steel piple plant with an annual rolling capacity of 600,000 tons and a refining capacity of 240,000 tons, app~:ars to have modified its plan and will increase the refining capacity to a level close to the rolling capacity. 21 FOR OF~'ICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 FOR OFFICIAL USE ONLY A~;ainst the background of these bullish plans are the following factors: 1. Conditions for oil development have become increasingly severe making it inevitable to drill for oil in deep soil, remote areas, seabeds and in ~orrosive gas environments; therefore, there is strong demand for high-class oil well pipes that can withstand such conditions. 2. Before oversupply b~comes a serious pr~blem, companies must expand their markets by boosting their capac3ties. = 3. If the Reagan administration decontrols the gas price, the oil develop- ment fever will be rekindled resulting in the scarcity of steel pipes by around 1985. COPYRIGHT: Nihon Keizai Shimbunsha 1982 - CSO: 4120/195 22 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007142/09: CIA-RDP82-40854R040500050004-7 FOR OFFICIAL USE ONLY - ECONOMIC ~ COUNTRY MUST F'IND PERMANENT U.S. TRADE MEASURES OW101221 Tokyo THE DAILY YOMIURI in English 9 Mar 82 p 4 [Article by Washington correspondent Konoe Kawagishi] [Text] Japan is now facing its thi~+d big wave of American pressure, the first being by four American battleships to open its ports more than a century ago and the second being the Pacific War. This time, Japan is requested to whether to open its market to American goods totally and unconditionably. [Sentence as published]. What tihe U.S. actually wants Japan to do seems to have been unveiled at the Senate Banking Committee meeting on 4 February. Cons idering what was discussed at the Senate Committee meeting and what had been said by U.S. Government leaders since the beginning of this year, the trade friction this time is completely d~fferent from the previous trade disputes between Japan an d the U.S. in terms of its nature and scale. Firstly, the dispute today is not over certain items such as te~tilss, color television sets or automobiles as was in the past. Secondly, the U.S. is now not only defending its market by limiting Japan's _ exports to it, but is in on the offense in demanding that Japan open its market totally to foreign goods, including service industries and investment. Thirdly, the most important demand is for a drastic change in Japanese traditional customs and practices, such as the Liberal Democratic Party's [LDPJ heavy dependence upon farmers' votes as well as of Japanese business practices. 'Ifi e U.S. knows that the major obstacle to the import of more American agri- cultural products to Japan is the opposition from Japanese farmers. Masumi Esaki, chairman of the LDP Special External Economic Committee and the head of a recent Japanese mission to the U.S. said that the Japanese market is now as open as that of oth er Western nations after Japan had advanced by 2 years the planned tariff cuts and decided to remove nontariff barriers on 67 items. Esaki also asserted that what was left now is only the differ- ence in custom and social setup between the two cotmtries, including language barriers. 23 " FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400504050044-7 What the U. S. is deman.di:ng is just what Esaki asserted, however. U.S. Secretary of Commerce Malcolm Baldrige said that the problems pending today were Japanese customs, traditional market systems and psychological barriers. The U.S. side is fully aware of the tendency among the Japanese to live and love foreign goods. The problem is the system of Japanese distribution that - keeps the prices of foreign goods higher, by taking advantage of this tendency. Officials of the U. S. Government agencies concerned with trade and commerce said that for example, the prices of American automobiles and cosmetics are twice as high in Japan as in the U.S. _ The practice of strong combination amon g industrial groups in Japan, such as buying goods, even at higher prices, from makers within the same industrial group, is another target of American criticism. In a sense, the U.S. is now demanding a change within Japanese business society, or change in the mind of individual Japanese people who tend to close the door to the world outside. The immediate reason for the U.S, to make such a strong demand or. Japan is its trade deficit with Japan of $18 billion last year. Baldrige said that the deficit could be improved by $8 billion to $5 billion within 5 years if - the Japanese market was totally opened to U.S. goods. t11so behind th e scenes of the U.S. demand is the economic depression in the U.S, as shown in the record number of unemployed--10 million people--and a move to make Japan a scapegoat amon g U.S. congressional and labor groups. Also seen in the strong criticism against Japan by the entire American establishment, including the government, industry and the congress, is an apparent plan to threaten and weaken Japanese strategy in the "future industries" such as computers, commimications, industrial robots and biotechnology. The U.S. appeared to have determined not to repeat the same mistake it made in the case of automobile industry in which Japan closed its market to foreign c.ars until it was full of domestically made cars. The Japanese auto industry took the strategy of exporting its products to foreign markets only after its own market was completely dominated by Japanese cars. In this sense, the U.S. demand on Japan today matches President Reagan's economic strategy, that is to rehabilitate the U.S. economy by revitalizing private industries. Japan should be fully aware that patch- up measures or minor reme dies case- by-case are no longer good to overcome today's trade friction between the two countries, as had been the case in past economic disputes. Without a bold determination to break through the "closeness" of the econ~mic, political and social setup within the country, Japan will never be able to overcome today's pressure to open its market to both U.S. and other foreign products. And Japan would also probably be unable to find the positive aspects of opening itself to foreign trade this time, as it found twice in the past-- the four American battleships a century ago and World War II. COPYRIGHT: DAILY YOMIURI 1982 CSC): 4120/195 2~+ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 FOR OFFICIAL USE ONLY SCIGNCE AND TECHNOLOGY ' MAINICHI' ON CRISIS FACING LAW OF SEA CONFERENCE OW141105 Tokyo MAINICHI SHIMBUN in Japanese 9 Mar 82 Morning Edition p 5 [Editorial: "Is It All Right to Break Up the Law of the Sea Conference?"] [Text] Is a new intei-national constitution of the sea, treaty on the new law of the sea," only a dream after all? The third UN Conference on the Law of the Sea, which has been debating for more than 8 years, was to hold its llth meeting in New York on 8 March, but the U,S. Reagan administration's "policy" concerning seabed development, which was submitted to the conference, prompts our pessimism. The U.S. Government's attitude toward the question of seabed development since the Reagan administration's inauguration shows a big departure from that of the preceding administrations--the attitude of seeking a compromise with developing nations. The United States now puts its national interest above anything else. One of its expressions is found in moves to conclude monopolistic mutual treaties with the United Kingdom, France and West Germany, which came to light Iast month. A"policy concerning major problems of the draft law of the sea," reportedly distributed to all countries this time, stipulates this attitude taken by the Reagan administration. The U.S. policy calls for guaranteeing the participation of the United States and other advanced industrial nations in the composition of the highest executive body for development, the International Seabed Agency Council, with the United States serving as a permanent council member. Regarding decisionmaking, it also calls for the introduction of the method used at general meetings of the International Monetary Ftmd (IMF), where a weighted voting method in proportion to the amount of funds contributed is used. In addition, it alleges that development technologies reportedly possessed by only the United States at present should not be forcibly transferred to the proposed International Development Corporation. All ttiis constitutes a grave challenge to the consensus in the informal draft at the law of the sea conference that had been formed step by step since its inauguration in December 1973. Certainly, manganese nodules, the reason for seabed development, contain large quantities of manganese, nickel, copper, cobalt and other precious mineral resources of strategic value; therefore, their mining is an important matter 25 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 rua ~rri~iru. u~~ v,wi of national interest to the United States. Furthermore, since the United States has both the money and technology needed for seabed development, it is passible for the United States to carry out development independently if its deman d is not met. The new policy spelled out by the Reagan administration even shows a little of this intimidation to the conference. However, if the U.S. Government persists in this attitude, the law of the sea conference will undoubtedly come to a breaking point, with its serious effect rebounding not only on order on the seas but on the North-South issue as well. The conference is faced with a dire crisis. COPYRIGHT: Mainichi ShimbLmsha 1982 CSO: 4120/197 26 FOR OFFICIt1L USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 - SCFENCE AND TECF~TOLOGY 'ASAHI' LAUDS REVISED JAPAN-AUSTRALIA NUCLEAR PACT OW151253 Tokyo ASAHI EVENING NEWS in English 13 Mar 82 p 5 [Editorial of ASAHI SHIMBUN 12 March: "Japan-Australia Nuclear Accord"] [Text] The revised agreement ori nuclear energy, on which Japan and Australia had been negotiating since 1978, has been signed. It is valid for 30 years, with provision foi its extension after that period. The government intends to ask the current Diet to ratify the agreement. When the agreement is implemented, not only will the pipeline of energy resource cooperation between Japan and Australia be considerably widened, but the already very stable Japan-Australia relations will be further strengthened 'oy yet another governmental agreement. The revised agreement includes a"comprehensive prior approval formula" Lm der which post-notification is adequate when the transfer and reprocessing of Aus~ralian uranium are carried out in Japanese facilities of previously designated scope. Through the adoption of this clause, the revised agreement - can be said to provide an important diplomatic footh~ld for the nuclear energy policy of Japan, which is trying to make nuclear energy a semi-domestic energy. The central problem in revising the agreement lay in how to recon cile, on the one hand, the Australian demand for followup restrictions on the use of its uranium aimed at preventing the proliferation of nuclear weapons, and on the other hand, the Japanese demand for the rationalization of restric- tions on the transfer and reprocessi.ng of uranium and the simplification of procedures. l:n the current nuclear energy agreements that Japan has signed with the United States and with Canada, an individual approval system is in effect. According to this system approval must be obtained from the source country each time uranium is transferred or reprocessed. Not only are the negotia- tions and procedures complicated, but Japan's use of nuclear energy can have major restrictions imposed on it as a result of changes in the policies of the source country or in the international situation. 1)uring the Carter administration, the United States adopted the policy of indefinitely postponing reprocessing by other countries and imposing restric- - tions on the development and commercialization of the fast breeder reactor. It refused to agree to reprocessing by Japan. 27 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 L'VR VPrllilKL UJi+ VLVLL Japan presently depends on Australia for about 11 percent of its uranium. The Ranger mine, being mined by a joint venture in which Japanese electric power companies have invested, began production in the fall of 1981. When the revised agreement with its more liberal transfer and processing clause is implemented, dependence on Australian uranium is expected to increase. ~de sincerely hope that such circumstances will strengthen Japan's position in the current negotiations with the United States and Canada which are seeking long-term agreements based on the Japan-Australia formula. Currently, Japan purchases natural uranium (yellow cake) and has it converted and enriched in Canada, the United States and France. Reprocessing is entrusted in most part to Britain and France. Eventually, however, Japan inten ds to do most of the converting and enrichment, and all of the reprocessing, domestically. Consequently, all the various facilities in operation within Japan as well as the facilities which Japan is utilizing in other countries are included in the list of designated facilities. The second reprocessing plant, which aims at starting operations in 1990, is also included in the list of designated facilities, but further discussions are to be held when operations are scheduled to begin. A time will eventually arrive when the nuclear energy indusCry of Japan will be developed as an export industry. When Japan signs nuclear energy agree- ments with South Korea, China, Southeast Asian countries, Mexico and other Central and South American cotmtries, what restrictions should Japan impose as a technology supplier comanitted to the nonproliferation of nuclear weapons? Serious consideration of the question should begin immediately. ln deliberating the agreement in the Diet, these points should be studied from diverse, long-term viewpoints. Thorough discussions are essential. After signing the agreement, Foreign Minister Yoshio Sakurauchi issued a statement saying the agreement is a constructive contribution to international cooperation, and will serve to maintain and strengthen the nonproliferation treaty and the safeguards set down by the International Atomic Energy Agency. Japan, whose dependence on nuclear energy is high, must take the lead in the research of systematic and technical safeguards based on international cooperation. The world's future depends on our ability to prevent the proliferation of nuclear weapons. Japan must utilize the revised Japan- Australia nuclear energy agreement to work toward this goal. COI'YRIGHT: Asahi Shimbim Tokyo Honsha 1982 CSU: 4120/198 28 FOR OFFICIAi~ USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 FOR OFFICIAL USE ONLY SCIENCE AND TECHNOLOGY DELAYS IN 57 POWER GENERATION PROJECTS REPORTED OW121148 Tokyo MAINICHI DAILY NEWS in English 10 Mar 82 p b [Text] The government has decided to postpone the construction of 57 nonoil power development projects, such as nuclear and hydroelectric power-stations, for up to more than 4 years, it was learned Tuesday. i"he decision is expected to have considerable impact on the nation's economic activities, as the power industry is one of the largest investors in this country. The postponement has been necessitated by the worldwide recession and a decline in energy consumption. Consequently, only a slow increase is expected in the demand for power, forcing a downward revision of the govemment's - earlier program of power development. According to the government`s new plan, almost all development projects will be delayed in comparison with the o1d program. Industrial observers said the same day that the postponement decision will further dampen the national economy, already hovering at a low level. The electric power industry envisages plant and equipment investments amounting to 3.5 trillion yen for the current fiscal year, the observers pointed out. The siun is equivalent to roughly 10 percent of the nation's total private investments. A slowdown in investment activities by the industry will not only affect the economies of the local communities chosen for the development projects, but also might lead to a:i unfavorable influence on the world economy, they recisoned. C~PYRiC~Ti': Mainichi Dai1y News, 1982 CSU: 4120/198 29 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R004500050004-7 FOR OFFICIAL USE ONLY SCIENCE AND TECI~IOLOGY FUJITSU DEVELOPS 8,000 GATE ARRAY FOR SEMICONDUCTORS Tokyo DENPA SHIMBUN in Japanese 10 Feb 82 p 1 [Text] Fujitsu Limited announced on the 9th that it has developed and will begin taking orders for 8,000 gate arrays using CMOS ]complementary metal oxide semiconductor] technology. A gate array allows the large-scale integra- tion of circuits required by the user within a short period; this is a promis- 3ng product which is expected to find a large market within the semiconductor industry. Both Hitachi Ltd and Toshiba Corp are expected to announce large gate arrays at the International So1id State Circuit Conference (ISSCC) which is to begin on the lOth in the United States; these announcements are likely to further stimulate development of the gate array market from now on. The 8,000 gate arrays developed by Fu~itsu are called the MB66000 series, and are characterized by the world's highest level of integration and high-speed operation, comparable to that of ECL [emitter coupled logic] chips--2.5 ns per gate delay time. The series was developed over 14 weeks at a cost of 13 mil- lion yen. The sample price is 65,000 yen, and the minimum order is 200 units. Because they have 8,000 gates, these arrays will have capabilities r_omparable to those of a general purpose microprocessor. Fu~itsu anticipates demand for use as small computer CPU's (central processing units) or control circuits for peripheral equipment, and is prepared to accept orders from boi:h the Japanese and U.S. markets. Gate arrays can be configured with digital circuits or other frequently used . circuit blocks as ordered by the user, and can be put to use in computers quickly with only the final wiring. Short delivery times and response to diversified demand for small quantities will facilitate the design of non- standard electronic devices with specialized characteristics. This is a pro- mising product of a type which ia expected to constitute over half of all semiconductors in 5 or 6 years. Fu~itsu is the first Japanese company to announce an array of 8,000 gates, but Oki Electric Industry Co, Toahiba, Hitachi and Nippon Electric Corp all entered the gate array market last year, and foreign ventures like Inter- design (agent: Microtech), AMI Japan and Japan Texas Instruments have also put their effort into developing this market. 30 � FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2047/02109: CIA-RDP82-00850R040500050044-7 FOR OFFICIAL USE ONLY ~ According to the manufacturers involved, gate arrays can be applied in a ~ broad range of consumer and production equipment, including computer equip- ment, office computers, personal computers, VTR [videotape recorder] cameras, stereos, and VTR sefis. Gate arrays can be used not only to replace standard IC's [integrated cir- cuits], but also to replace microprocessors; they have also been used recently to partially revise and improve the capabilities of office and personal com- - puters almost as soon as they have come onto the market. Rapid growth is expected in the market for gate arrays, and the expansion of their functions seen in Fu3itsu's announc:ement of a product with 8,000 gates is expected fio have an impact which will change the design concepts of exist- ing electronic equipment. This will be a.great tool in responding to the demands of the new era of small quantities, diverse functions and short deli- very times . It can be noted that Japanese semiconductor companies have put more effort into gate arrays than have U.S. manufacturers, and for that reason it is generally predicted that Japan will have a larger market than the United States. And because intricate operations are required for gate arrays. It has been called a product for the Japanese; thase involved hope that the use of gate arrays wi1,1 give rise to many creative new electronic devices. COPYRIGHT: Denpa Shimbunsha 1982 9601 CSO: 4106/71 31 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007102/09: CIA-RDP82-00850R000500050404-7 i FO~t OFFICIAL USE ONLY i I I SCIENCE AND TECHNOLOGY ~ I - i ~ i- ~ ' J?,pAN TO DEVELOP 5TH GENERATION COMPUTER i . i; Tokyo NIKKEI SANGYO SHIMBUN in Japanese 4 Jan 82 p 13 [Text] A project to develop "thinking computers" roaosaln the~governmenttallocated finally commence this year. In the FY 82 budget p p ~ development expenses of 426 millilndustrfor MlTitdecidedato~promotetresearchhby ln- istry of International Trade and Y the joint efforts of un3versities andearchalnstituteaof~theuAgencyhof1lndustrial f the General Electronic Technology Res ect. , Science and Technology, and has startestablish aftechnology research ass ciation Corporate participa.nts are likely to or a research foundation to take part in research and development. rolect toTavoid ' speeding up its efforts to include foreign computer makers in the p~ ,1 the unnecessary trouble of rekindlingofha 11ublic~privatetjoint ventures since the method of development takes the form P The first generation computer which performeedCtransistors,athe thirdrgeneration used vacuum tubes. The second generation s ress was made. adopted IC's and the fourth generation employed super LSI's as prog Currently top is the 3.Sth~generation computer which uses a 64 kilobit element, the first of the super LSI s, as a part in the memory cell. lar er capacity and higher speed have been achieved by improving Conventionally, g performance of the elements, but the basic computerremainedCtheesame WhHowever~ in was handled in order of the programs given by man, _ the nineties, a"thinking computerstor eofethedprogressnof~theeco putersi11Research mensely different from the past hi y and development of this 5th genexation computer has begun in various nations. Nonetheless, the development targets for a Sth generation "thinking computer" have not been definitely formulatedndeeendentlyeigSincentheeimporCance oftinformationet and proceed with development i p machinery and equipment such aa i mdevelopment inrorderytonfacilitatetthefcontinu- Japan should not be left behin ous growth of Japanese industries i~ter~isksnbecauseHiteisra challenge~in an un-a Sth generation computer involves la g known realm. Therefore, MITI decided to promote development entirely by "research commission fees" paid by the government. 32 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 FOR OFFICIAL USE ONLY Presently in the computer field, research on elements such as the Josephson ele- ment and the Hemto [phonetic] element from gallium arsenic that can work 10-100 times faster than conventional ones is being undertaken in Japan and other nations. Some may call a computer which incorporates this super high-speed element a fifth generation computer, however, the fifth generation computer that MITI is pursuing is not simply faster in speed but is capable of parallel computation, a computation system called "data flow." Peripheral equipment includes a voice recognition de- vice that correctly recognizes the human voice, an association and memory device, a reasoning device and a sentence recognition device. The computer is also equip- ped with learning ability. In short, the more the computer does the work, the higher the throughput rises. According to MITI, what is important to a thinking computer is architecture and software and elements which can be in the form of conventional silicon, galliw~- arsenic or Josephson types. Based upon this conviction, MITI is not going to in- clude the development of elements in the Sth Generation Computer Development Proj ect . The blueprint drawn by MITI allows 10 years for the total project, allocating 3 years for the first term, 4 years for the second and 3 years for the 3rd. Since it is absolutely a shot in the dark, a budget of 10 billion yen is estimated for the initial 3 years. MITI is planning to decide on the size of budget for the second and the third terms after reviewing progress in the first term. It is said that the computer, after completion of the "thinking computer," will change from a conventional "cold blooded" machine which can only be handled by professionals to a"warm-hearted" computer which will show compassion to amateurs. This change will be feasible because fifth generation computers think and reason by themselves without elaborate instrucCions from an operator, and instructions can be given in the form of "natural language" as in conversation. Amateurs need not strive to learn computer program language. Also, they say that computers will contain remarkably extensive knowledge from law to even dwarf-tree culture and will be helpful in any subject. Development of computers such as these will broaden the scope of the market dramatically and open an era when computers will be popularly used in industry and society. Commentary: Government Takes Initiative in Allocation of "Cornmission Fees" The Ministry of Finance and the Ministry of International Trade and Industry reach- ed an agreement to allocate research expenses to private corporations as "commis- sion fees." Research and development will be carried out under the budget of the Machinery and Information Industry Bureau of MITI. The same.bureau handled the super LSI development, a national project, in the past, and it is currently under- taking the development of a 4th-generation computer. Until now, research has been conducted under the "subsidy" system under which the Government subsidizes two- thirds to three-quarters of the research expenses. However, it has been,decided that the project at this time will be placed under "commission fees" which will be paid 100 percent by the Government. At first glance, "commission fees" may sound very convenient to corporations, but "commission fees" implies that the Government contracts out projects that it should 33 FOR OFF[C[AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 FOR OFFICIAL USE ONLY do by itself, to the private sector. The resulting patent rights and copyrights (circuit diagrams) will naturally be snapped up as national property. In con- trast, "subsidies" allow the private sector to take the initiative and the com- panies which achieved development to hold the patent rights. The view is that MITI strategically adopted these "commission fees" that the Government can hdld the leadership in the project, and promptly act to meet circumstance when foreign corporations not in the project pressure the Government to disclose fifth genera- tion computer patents and thus avoid international friction. COPYRIGHT: Nihon Keizai Shimbunsha 1982 8940 CSO: 4106/40 3~+ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 FOR OFFICIAL USE ONLY SCIENCE AND TECHNOLOGY TEST STAGE OF HIGH SPEED LINEAR MOTORCAR DESCRIBED Tokyo SHUKAN TOYO REIZAI in Japanese 6 Feb 82 pp 76-81 [Article: "500 Km/Hour Very High Speed Express Targeted"] [Excerpt] Test runs on the drer3m very high speed ground transport locomotive "the magnetic levitation linear motorcar" are being conducted at the 4-kilo- meter test track at the National,Railway Levitation Railroad Test Center at Himukai-shi in Miyazaki Prefecture. The targeted speed is 500 km/hour. A ma~or change in tranaport system is expected if this pro~ect becomea prac- tical. If rail travel between Tokyo and Osaka ie reduced to 1 hour, air travel between these two cities wi11 probably ba reduced to zero. The targeted speed of 500 km/hour has already been attained on the 7 kilometer , overall length experimental line, where a run of 504 km/hour was attained on 12 December 1979 and also a run of 317 km/hour on 22 December.of the same , year, and both runs wPre stable. The experimental vehi `le'whi recorded these runs was the ML-500. Now, speaking from an extreme viewpoint, there are no limits to the speed which can be attained by a linear motorcar. On the other hand, the horsepower has to 3e increased tremendously to reach the faster speeds. This is because the resistance of air to this vehicle increases roughly in proportion to the ~ square of the spe~d. Ass~.gning the arbitrary value of 1 to the air resistance at a speed of SOQ km/hour, this value wi11 increase sharply to 4 at 1,000 km/hour and to 25 at 5,000 km/hour. This is why the National Railway arrived at a tentative figure of 500 km/hour from the standpoint of economics and the actual distances involved. If it were possible to operate the linear motorcar within a vacuum, air re- sistance effects would be eliminated, and speeds of 20,000 lan/hour would be possible. An idea is being spawned in the United States to develop a trans- continental railroad that would span the country from Los Angeles to New York in 21 minutes. This would involve the construction of an underground vacuum tube through wh ich a linear motorcar would travel at speeds greater than 10,000 km/hour. 35 - ~'OR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2407/02109: CIA-RDP82-00854R000500050004-7 FOR OFFICIAL USE ONLY Speed of 10,000 Km/Hour Possible _ As the next step, the National Railway developed manned type connected experi- mental motorcars and initiated test runs last fa11. Already the following conclusions have been drawn: 1) the basic technological problems have been resolved, 2) there is little sway, and the riding comfort is better than that = of the Shinkansen [present fast express], and 3) energy consumption is inter- mediate between that of a regular passenger train and the Shinkansen, a passenger load three times that of a~umbo ~et is poasible, and a speed twice that of the Shinkansen can be attained. What should be pointed out here is that the Shinkansen does nat require energy to be supported on the rails over which it travels, while airplanes and levi- tation mode linear motorcars require energy to sustain their lift off the ground as they travel. There are three requirements that need to be fulfilled for the vehicle to - travel over this "railroad": 1) the vehicle must be supported vertically, 2) the vehicle must be guided over the track, and 3) the vehicle has to be propelled and stopped. The usual railway has the rails taking over all three functions. Now, as the speed exceeds 350 km/hour, friction between the wheels and the rails diminishes, and the force which the power wheels apply against the tracks becomes weaker. As shown in the illustration, the linear motorcar uses the repelling force or attractive force of the magnets installed along the guideway to put functions 1), 2), and 3) or functions 2) and 3) (when magnetic levitation is not employed) into effect, so that there are no limits to its speed or its hi11 climbing ability. When traveling in a state of levitation, energy is cons wned to support the motorcar above ground, but noise is limited to the sound of the vehicle cut- ting through the air and is no serious problem. There is no frictional wear on the wheels or the guideway, maintenance is minimal, and life is prolonged. These are ma~or merits. The National Railway initiated studies on the linear motorcar 2 years before the inauguration of the Shinkansen runs, and has accumulated deve~opmental _ results for more than 10 years with its single-minded effort on the levitation railroad; its technological level in this particular area is tops in the world. The levitation mode can be of two types: repulsion or attraction. The National Railway has adopted the repulsion type, and in particular the main- stream type of inductive repulsion. In addition, the feature here is the use of superconducting magnets. The development of small, light, and high-performance adiabatic containers was needed in order to assemble compact and highly efficient superconducting mag- nets. The targeted goal was successfully realized with the cooperative ef- forst of Toshiba, Hitachi, and Mitsubishi Electric. The spinoff effects of 36 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 FOR OFF[CIAL USE ONLY this development are very large. This is because superconducting magnets are very useful in the area of adva.r~ced technologies: to advance the cause of MHD power generation, nuclear fusion, superconducting power generators, power storage, and superconducting ~hips. Stabilized Levitation Travel There are the flat section and the side wall sections on both sides of the U-shaped cross-section guideway. Ztao series or independent levitation coils are arrayed to the left and right of the flat section at fixed intervals in the direction of travel. When the superconducting magnet attached to the chassis glides over these - levitation coils at high speed, inductive current is generated in the levita- tion coils, and the levitation coils themselves become electromagnets in the mode that is employed. 'I'he magnetic force of the coils which have become magnetized and the superconduct3ng magnets mutually repel each other to force the superconducting magnet upward, as a result of which the chassis of the motorcar is levitated about 10 cm. Now, this levitation force is sma11 at a speed of 50-100 kilometers/hour, so that it is necessary to lower auxiliary wheels in order for the motorcar to run. The merit of the levitation mode is that when the height of the levi- tated chassis is too 1ow, the repulsion force between magnets becomes ex- _ tremely large and forces the chassis upward while, conversely, when the ch assis rises too high, the repulsive force weakens and gravity lowers the chassis. In other words, a stabilized levitation state is realized without the need for a special device to control the height of levitation. Because an induction eurrent proportional to the speed of the superconducting magnets which pass over the levifiation coils is generated in these coils, the height of levitation increases the greater the speed and decreases the slower the speed. At the same time, the ad~ustment of the position and strength of the magnets on the chassis can be used to vary the levitation height. The National Railway has established IO centimeters as the average height of the levitation coils from the ground. Tteis height allows a margin by which there is essentially no effect of minor discrepancies in height and align- ment, and maintenance is also minimized. The coils consist of numerous windings of aluminum wire ~oated with syr_thetic resin which are affixed to the ground side. Strengthened Reutilization of Energy What is called a superconducting magnet here refers to a magnet made of ma~terial such as niobium-tantalum a11oy which has electrical resistance from - zero down close to -273�C (absolute zero) which is formed into coils to com- prise magnets. Because these coils have no electrical resistance, once a current is introduced, it will flow forever, and no electrical power is con- sumed. It is ~ust as though a super-high-strength permanent magnet were employed. 37 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500054004-7 FOR OFFICIAL USE ONLY . I.iquid helium is used in order to mainta~in these coils at very low temperatures, and a system has been developed 3n which the helium, which gasifies once it has performed its cooling function, 3s once aga3n liquef3ed and reused, and this is one of the National Railwayfs successful developments. This system was uti- lized to develop a light, sma11 cooling unit whose development was announced about 4 years ago. There are some test calculations which estimate the demand of the high-cost "superconducting magnets" which are the crux of the levitation rail~nad targeted for 500 km/hour operation. Assuming that an express of 16 vehicles plies the route between Tokyo and Osaka, taking 1 hour to traverse the distance, and that trains are dispatched at 5 minute intervals, at any given time there wi11 be a total of 24 express trains on the tracks for a total of 384 vehicles. Further assuming that each vehicle is equipped with eight superconducting magnets, the total wi11 be 3,072 magnets. This number wi11 be even greater taking into account standby vehicles and vehicles under inspection or repair. ~ The Approaching Linear Motorcar Age The National Railway Levitation Railroad Test Center at Himukai city receives many f.oreign visitors who are railway specialists; this site is presently the Mecca of '!evitation railroad experts from a11 over the world. It is only very recently that the advantages of the superconducting magnet for a levitation railroad has been recognized. It is possible that the United States and the United Kingdom, with strong leanings taward the levitation r~ilroad, and West Germany, which is conduct- ing its own experiments along this line, will import this superconducting magnet once the National Railway is able to enter mass production and lower the cost. The linear motor is the prime moving force which propels the vehicles with the superconducting magnets. An AC motor is provided with a rotating section (rotor) and a fixed section (stator) where current is supplied from outside to create the rotating magnetic field. The outer circumferential surface of the rotor supported by a shaft maintains a fixed distance from the inner circumferential surface of the stator. The linear motor maintains these cylindrical outer and inner surfaces in parallel array while extracting force in a straight line (linear) direction. This motor is arrayed so that the two parallel planes maintain a fixed dis- tance from each other while they mutually work together to produce linear movement. Now, by placing one member on the ground and the other on the vehicle, a starting force is created to propel the vehicle. The gears and wheels used in trains of the past are no longer necessary. Linear. motors can be grossly classified into linear synchronous motors (LSM) and linear induction motors (LIM). - 38 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 FOR OFFICIAL USE ONLY The levitation mode railway systems which are being researched and developed throughout the world include two types: a combinafiion of induction repulsion (ED) levitation and LSM propulsion and magnetic attraction (EM) levitation combined with LIM propulsion. The former 3s the type in which the National Railway is leading the way with the use of superconducting magnets. The make- up of this LSM is as follows. Cooling Facility Is the Rey Driving coils are installed on the inside of the two side walls of the guide- way at a height corresponding to the height of the pole faces of the super- conducting magnets installed on the vehicle. These driving coils are linked together and play the role of the stator of an LSM. The stator is on the primary side, which is the side from which current is supplied from the out- side. The superconducting magnets on the vehicle are placed on both sides so that the N pole and S pole are arrayed in an alternate manner corresponding to the driving coils on the inner wa11s of the guideway. It is clear from this that the superconducting magnets placed on the vehicle are used for the two functions of levitating the vehicle and guiding and driving the vehicle. How are these vehicles driven? First of all, the position and speed of the - express are automatically detected at a central command center, and the center is in fu11 command of operating the express ~ust as though it were in the driver's seat. It uses this information to control the supply of current and its frequency to the drive coils placed on the wa11s on both sides of the guideway. This then generates the power to propel the express at a given speed by ope- rating the N and S poles af the superconducting magnets on the express. The current supplied is limited to the number of coils proportional to the length of the express, and there is no wasted current. - This LSM system also has the advantage that when the brakes are applied, there is a power generation control by which the kinetic energy of the express is conversely converted to electrical energy and recovered. In addition, there is no limit to the speed of a ground based primary type system. The operational tests which the National Railway has been conducting at Himukai city since last fall using a two-car system has achieved a measure of success, and these tests will be continued. An item of note in this pre- sent series of tests is the new type cooling and liquefaction unit for liquid helium that is carried aboard the MLU001-3 for cooling the superconducting magnets . Liquid helium vaporizes at -269�C. In other words, the liquid helium vaporizes immediately after it cools the superconducting magnet to -270�C. In the case of the ML-500, which has posted a speed of 517 km/hour, the helium which vaporized was allowed to escape into the atmosphere, but this vaporized helium must be recovered and reliquefied when the economics of the system and the practical utility are considered. 39 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 FOR OFF~CIAL USE ONLY This is why the MLU001.-1 was provided w3th a specially developed sma11, light-weight cocling and liquefying facility. The MLU001-1 was provided with one cooling and liquefaction facility and one compressor for the four super- conducting magnets, but the MLU001-3 has been provided c~rl.th four very light, small cooling and liquefaction units and one compressor for its four super- conducting magnets. Economics To Match That of the Shinkansen The efficiency of equipment improves with increasing size, but the losses in- crease in an ultracold equipment system as the distribution lines become longer. The use of four cooling and liquefaction units has the merit of faci- litating placement design and cutting down on the use of distribution lines. The final decision as to what distribution mode will be adopted will be decided after actual tests. The fact that these tests have come to the present stage is an indication that the experiments are approaching the final stage. It appears that unless lightweight, miniaturized, and high-efficiency equip- ment for vehicle board use is developed, a high performance and economic linear motor cannot be developed. Test runs with three cars in series are under way this year, and the guideway is now a 7-kilometer-long U-shaped affair. Now, a separate 40-kilometer-long exFerimental line is needed in order to test the practical aspects of a 500 kilometer train. When one travels at 500 km/ hour, he covers 17 kilometers in 2 minutes. Once the operating characteris- tics, safety, reliability, rid3ng fee1, and wear of the express on this experimental line have been established, the decision as to its practicability should be possible. In any event, it will be at least in the 1990 decade when a Tokyo to Osaka line will become a reality. On the other hand, there seems to be some data avail- able on the economics of this new line based on the data accumulated to date on the Shinkansen and the experience and results accumulated at the experi- mental center. That is to say, comparison of economics with the Shinkansen show that construction costs including the cost of vehicles will be roughly 20 percent more than for the Shinkansen, but when the overall cost including operating costs are considered, the two systems are roughly equal. What can be stated with assurance is that the "ED'LSM" is suitable only to runs such as the Tokyo Nagoya-0saka interval where there is great need for fast travel requiring not more than 30 minutes, because the high construction costs would not warrant the construction otherwise. 40 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500050004-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000540050044-7 FOR OFFICIAL USE ONLY . Construct3on of Linear Motor ~1 ~ ~ t~ _ =?~-9-ri-~#~'ciL ~ i ( a,~v~~~ ~ ~a~.ma ~ ~~tn~~?~t ) ~,=y, \ ~ . ~ 7 ~~a~~ :`