JPRS ID: 10543 JAPAN REPORT

• Document Type: CREST
• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000500060056-9
• Release Decision: RIF
• Original Classification: U
• Document Page Count: 60
• Document Creation Date: November 1, 2016
• Sequence Number: 56
• Content Type: REPORTS

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000540060056-9
FOR OFFiCIAL USE ONLY
JPRS L/ 10543
26 May 1982
Ja an Re ort
p p
CFOUO 3~/82)
~
FBIS FOREIGN BROADCAST INFORMATION SERVICE
FOR OFFICIAL USE ONLY .
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9
- NOTE
JPRS publications contain information pri~narily from foreign
newspapers, periodicals and books, but also from news aRency
transmissions and broadcasts. Materials from foreign-language
sources are translated; those from English-language sources
are transcribe~ or reprinted, with the original phrasing and
other characteristics retained.
Headlines, editorial reports, ar~d material enclosed in brackets
[j are supplied by JPRS. Processing indicators such as [Text]
or [Excerpt] in t;ie first line of each item, or following the
last line of a brief, indicate how the original information was
processed. Where no processing indicator is given, the infor-
mation was summarized or extracted.
Unfamiliar names rendered phonetically ar transliterated are
en~closed 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 paren~thetical notes with in the body of an
item originate with the source. Times wiXhin ~tems are as
given by source.
The contents of this publication in no way represent the poli-
cies, views or attitudes of the U.S. Government.
COPYRIGHT LAWS AND REGULATIONS GOVERNING OWNERSHIP OF
MATERIALS REPRODUCED HEREIN REQUIRE THAT DISSEMINATION
OF THIS PUBLICATION BE RESTRICTED FOR OFFICIAL USE ONLY.
i
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9
FOR OFF'iCIAL USE ONLY
JPRS L/10543
2E May 1982
JAPP,N f EPORT
(FOUO 32/82~
CONTENTS
POLITIC~
Maneuvers Among LDP Factions Reported
(Shizuo Kobayashi; SANI~EI SHIMBUN, 22 Apr 82) 1
- POLITICAL AND SOCIOLOGICAL
Komoto as a Contender to Premiership Discuased
(Taro Maki; MAINICHI DAILY NEWS, 24 Apr 82) 4
Suzuki Cabinet's Aifficulties Discussed
(Takuo Hayashi; MAINICHI DAILY NEWS, 2 May 82) 6
Farm Lobby Oppose~ Increased Importa From U.S.
(EditoriP.i; THE DAILY YOMIURI, 24 Apr 82) 8
Activitiea of LDP Factior.g Reported ~
(Takehiko Takahashi; MAINICHI DAILY NFWS, 28 Apr $2) 10
LDP's Idea of Think Tank Examined
ZRenjx Kitahara; THE DAILY YOMIURI, 30 Apr 82) 12
ECONOMIC
LDP Dietmen's Views on U.S. Relationship
(THE DAILY YOMIURI, various dates) 13
Research Commission Head Comments, by Hyosuke Niwa
Congress ilrged To Change Policiea, by lchiro Hatoyama
- Avoid Aestruction of GATT, by Masumi Esaki
Trade, Defense Link Noted, hy Kichizo Hosoda
Need To Know Each Other, by Toshio nimura
Tokyo Colloquium Discusaes Japan, World Economy
(THE DAILY YOMIURI, 12-16 Apr 82) 21
- a - ~II1 ASIA - 111 FOUO]
FOR OFF'ICIAL U5E ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9
SC.ENCE AND TECHNOLOc;Y
Electronica, Computer Induetries' FY82 Plant, Equipment
Investment Reported
(DENPA SHII~UN, 3 Msr 82) 34
Current R&D of Ceramic Engine, Siirling Engine Discusaed
(Yasu~nobu Otori; SHUKAN TOYO KEIZAI, 13 Feb ~2) 37
Future of Japanese Biotechnology Industry Diacueaed
(Teruaki Fukami; USHIO, Mar 82) 43

I~
- b -
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-40850R040500064056-9
FOR OFFICIAL iJSF. ONLY
POLITICS
'J
- MANEUVERS AMONG LDP FACTIONS REPORTID
Tokyo SANKEI SHIMEUN in Japanese 22 Apr p 2
~Article by Reporter Shiz~io Kobayashi: "Ta~:ska Faction's Countermeasure A-
gainst Three Anti-Suzuki Factions."1
[Tex~ With the party presidential electi~n this fall as the backdrop, and
with the budget de~icit problem and the first court ruling on a politiciar_
= defendant in the Lockheed incident, the movement of factional opinions within
the Liberal Democratic Party (Y.DP) have begun to appear. Both the Fukuda and
Nakagawa factions, estimating the future political situation, ha~~P already de-
cided to hold their factional in-service training con.cerences, and on the 21st
the Kawamoto factioi~ also announced it will have its factional in-service
training conference in September. And in opposition to ti~e attitude of theae
three factions of trying to upset the Suzuki and Tanaka factione, the Tanaka
faction also set up a governing board meeting and meetings for the mainstay
party members and younger members, and will begin tightening up th~ bonds of
unity in preparation for *.he future political situation. With the end of the
Diet near at hand, there is the smell of blood in the movements of these vari-
ous factions.
At its regular ge~.~~a~ meeting on th~ ?lst, the Tanaka faction's "Nanoka-kai,"
created by Diet membera electe,~ less than i{ve times to the House of Represen-
tatives, dscided to hold a conference right aiter the consecutive holidays
(Golden Week holidays) and invite former Prime Minis ter Tanaka. With regard
to this, this group's leaders are emphasizing that thia has nothing to do
with the movem~nt of the political situation, saying: "this is a regular
'drinking partv' since the end of the DieL session is near."
However, tl~.: Tanaka faction set up in turn a meeting for those elected to
the Hou~e of Representatives six to eight times on t~?e 22nd, and a mee*_ing
for those winc ~atiinet sxperience on the 27th. FoS~n~r Prime Minister Tanaka
is expected to attend all of tfiese meetinga. It seAms this series of ineetings
is ~or strengtbening their unity in pr~aparation for the future political situ-
ation.
1.
FOR OFFICIAL USF, ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPR~VED F~R RELEASE: 2007/02/09: CIA-RDP82-04850R000500060056-9
FCR OFFICIAL USF. ONLY
This kind o~ mane~uvexi.n$ hy tfie Tanaka ~act~fln ia not unrelated to the fact
that hoth the $ukuda and AIakaga~ta ~actions qu~,ckly a~nouneed the~.z ,~actional
training conferences at tfie ~eginning o~ this montfi. TI~e ~'ukuda faction `s
conference arxll be field at a fiotei ~n Haknr~e on Tiot~i the 14tfi and 20th of
_ June; and tfie Nakagawa ~action ia undec~ded on tbe dates and location but
intends to tiold it a#ter tfie F'ukuda factionTs training conference. These
two factions are intensffying tfieir confrontatio:~ with ba~h the Suzuki and
Tanaka factions uver Prime Minister Suzuki's reelection. And althought in
the beginning tbe Tanaka fact~on officials showed composure with the com-
ment, "our unity is always firm; it isn't particularly wecessary for ue to
hold an in-service trai~ing conference," it seems they decided to liold sep-
arate meetings for officials sad younger members after making the ~udgment
that "now is the time to tighten up thz faction."
Likewise, tfie Rawamoto faction, keeping its eye on the November presidential
election, w~ll fiold its traii:?^_o conference at Aakon~ for ti:ree days, the 4th
through the 6th of September; and furthermore, "it will work out across the
board policies on tha economy, foreign affairs and defense at its national
conference for the formation of a new 'policy research committee' expected
on 28 September. This will be the "Kswamoto go~vernment plan" when Economic
Planning Agency Minister Kawamoto runs in the presidential election.
The future political situatian looks like a schema for confrontation between
the three factions of the Suzuhi and Tanaka facticaa, which aim at Suzuki's
reelection, and the Nakasone factian, which wants the support of these two
factions "post-Suzuki," and the Fuksda, Kawamoto and Nakagawa factions. In
this schema, the Tanaka faction, the "father of Suzuki," has stP=*_~d moving
since these three factions have intensified their "anti-Suzukt attitude."
It seeias that tfie three "anti-Suzuki" factions will commence firing criticiam
at Suzuki on the budget deficit question, but since Prime Minister Suzuki and
the Tanaka faction assume the attitude that "no matter who is in charge of
the government, there are no miraculous plans; this problem must be resolved
with the government and party uni ted," it is difficult for the three "anti-
Suzuki" factions to attack. In particular, it is difficult for Kawamoto to
act inasmuch as he occupied the position of the "gerson responsible for the
management of the economy" in the Suzuki cabinet as Minister of the Economic
glanning Agency for nearly two years. This is why Kawamoto earlier gave warn-
ing to the managers of his faction to be careful in their speech and behavior.
Former Prime Minister FLkuda is carefully trying to grasp the change in the
political situation. "Now he is steadfastly watching the course of events."
(Fukuda faction official) And Kawamoto himself, like former Prime Minister
Fukuda, is taking a"natural" pose.
The Fukuda faction offical~a state: "The two points are the budg~~~ deficit
probiem and political etfiics. Former Prime Minister Fukuda is stradfastly
watching the court ruling on Takayvki Sato and Tomisaburo Hashi.moto on 8
June." Tfie Fukuda faction~s tactics are to shake up the Suzuki government
2
FOR OFFICIAL USF ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500060056-9
FOR OFFICIAL USF. ONLY
hy bringing to the ~ore.front the quest~on o~ estahl~shing political ethics
which can more easily be "materi.al for attack" than can the hudget def icit
Issue. Regarding this, the Tanatka faction officials are showing tfiey will
stand up and take it~ say~ng "~ofien PUkuda att$cks, fiis old trick is to talk
about tfie estafilisfiment of politic~l etFi~cs.'~
It seems inevitable tTiat former Prime Minister Fukuda will work out "the
establisfiment of political etfiics" at bis faction's training conf~erence on
19 June. The view that Fukuda's ~;ords will be the txigger for political
upheaval is increasing within tfie LDP.
COPYRTGHT: Sangyo Keizai Shimbun Tokyobonsha 1982
9400 .
CSO: 4105/102
l
3
FOR OFFICIAL i1SE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000540060056-9
MOR OFFICIAL USE OtiLY
POLITICAL AND SOCIOLOGICAL
KOMOTO AS A CONTENDER TO PREMIERSHIP DISCUSSED
i Tokyo MAINICHI DAILY NEWS in English 24 Apr 82 p 2
[Arti.cle by Taro Maki: "Komoto in Political Limelight~']
[Text]
To all appearances, problems No~v this uniqae busi- national economy has been
serious enough to rock the ne~sman�turned politEcian will dormant tor a~long time and the ~
administration of Prime move may determine :he numberottheunemployedisl.t
1?finister Zenko Suzuki are political scene in the second million. It lhis situation
likely to emerge en masse atter half of this year. remains, Japan ls bound to
the holiday-studded Golden Once before, Komoto was the experience the social unrest
Week trom late April lo early center ot political attention. In now observed in~ other coun-
hfay. Intensi(ication of trade the tall ot 1977, he was chair- tries. The biggest political~task
trictions w~ith the United Stales man ot the Policy A(tairs today is to take bold step to
and Western Europe, the Research Council of the ruling overcome the recession,"
Versailles summit conference Liberal-Democralic Party argued Komoto.
scheduled for June 4-5, and the ~~�hen Fukuda w~as prime As the nation's business
disclosure ot a shortfall in minister. circles had been discouraged by
~ excess ot 2 trillion yen in tax ~t ~~as a time when. after the Fukuda who. (eartul of a
revenues tor the central initial shock ot the first oil resurgence ot inflationary
gove~~.,:.:.::: -~all thes~ and pressures, was hesitant to
ocher elements inc to the crisis, the Japanese economy
Po resort to expansionary
possibitity -~f a"great turmoil" �'as expected to reqain its measures, Komoto acquired a
forecast by tormer Prime vitality, but it remained ~d re utation as "a litician
,1linistcrTakeoFukuda. staRnant for a lonq time. While K p ~
domestic demand remained with a sense ot actual business
In these c~rcumstances �~eak, Ja anese enter rises management.''
Toshio I:omoto, director p p Finall , the overnment
generai ot the Economic were promoting exports, thus Y B
Planninq Aqen~y, is the invitingseverecomplaintstrom tollowed his lead and compiled
politician who is attracting the United States and Western a supplementary budget in-
most attention. He is attracting Europe. corporating a 2-Lrillion-yen
attention not only because he is, Prime Ministec Fukuda. investmenl in pubiic works
_ to~;ether H~ith Director General ho�~e~~ec. was insisting on projects.
1'asuhir~ Nakasone of the "restraints'~ In tiscal apending. Politieal Turmoll
Administrative Management He was unwillin~ to change his
ARency, a leading contender tor economic.policy in the direction It Komolo again demands a
the post of prime minister, but of expansion wlth the help o( switch to an expansionary
also because he is known 'as a i n c r e a s e d b u d q e t a r y policy today when a huqe tax
perennial advocator o( positive allocatlons. ~ shoMfall has become certain, he
- manaqement ot the Japanese I t w a s K o m o t o w h o 1s bound to create a p,reat
_ economy. challenged Fukuda. "The politic8l Commotion. ~
4
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500060056-9
FOR OFFICIAL USE ONLY
!ie was born in Hyogo The company only had two for anyone to tile his candidacy
Pre(ecture on June 22,1911, the trei~hters, but 30 years laler, it tor the party presidency -
same year as Prime Minis- had grown to become the third which almost automatically
ter Suzuki and U.S. Presi- bi~~est shipping firm in Japan, means the post ot prime
d e n l R o n a I d R c a~ a n. next only to Nippon Yusen minister when the LDP enjoys a
Among his rivals, Susumu Kaisha (NYK? and Osaka com(ortable majority in the
Nikaido, secretacy ~eneral of ShOSCn Kaisha (OSK1. The Diet.
the Liberal-Democratic Partv, growth of Sanko Steamship Co. He is in need ot cooperation
is two years his senior and in such a short periocl [rom other factions. At present,
l~akasone seven vears his eloquently demonstrates Ko- he is making contacts with
juninr. ~ moto's management skill. Fukuda; who heads his own
Komoto's family is said to Throughout his period as (action, under the guise o[
date back to betore the Edo manager in the shippinq in� consultations on how to manage
Period. His (ather ~~~as once a dustry, he remained positive in the nation's economy. Both
school principal and a village adopting various measures. Fukuda and Komoto are kno�~n
headman. Even a(ter entering the political as economic experts.
Ai middle school, he was good worid, bis stance toward In parallel with his approach
at mathematics and won the positive economic policies to the Fukuda faction, Komoto
reputation of � being the neverwavered. is also seeking contact with the
brightest boy since the school's Some of the nation's top biggest faction, the one headed
inception. business leadcrs still seem by tormer prime minicter
In 19z8, he advanced to a skeptical o( his economic Kakuei Tanaka, througlt Shln
higher school in liimeji, also in policies, but such leaders as Kanemaru, who is one o(
Hyoqo Prefecture. It was there Chairmap Kazuo Iwata ot Tanaka'sclosestconfidants.
that he had one o( thc most Tosf~iba Corporation and Komoto is also seen urging
dramatic experiencctis in his President Eishiro Saito of some indepeqdent Dietmen to
lifc. When he was a second-ycar Nippon Steel Corporati~n have join lhe LDP. ~
student, a school military drill begun expressing their support Thus, he may be in real
was to be held at the Himeji ot Komoto a(tcr having often earnest in challenging Prime
Intantry Regiment parade examined his economfc Minister Suzuki in the LDP
ground. � Betore his tcllow lhinking over meals. It may be presidential election scheduled
students, the young Komoto possible to say that he is tor this coming tall.
delivered a speech opposing the gradually gaining a foothold in
drill. "What is most important business circles.
for students is to study. Military

~ trainin~ is mcaningless," hc Miki Faction
declared. ~ It ad~ocacy ot ezonomy '
His speech angered the stimulating policies is one
military that dominated the weapon for Komoto's challenqe
country at that time and to become the next pcime
IComotowasexpelled. minister, his remaining task
A student who. might have must be how to increase his
adv~:ued to the Tokyo Imperial supporters within the ruling
University (president-day party.
Todai), he went to Osaka and After serving tormer Prime
worked as a(actory hand and Minister Takeo Miki as his chief
stevedore. (inancial source, Komoto
After ~raduating trom Nihon succeeded Miki as leader of the
University in Tokyo, he joined a Miki taction, currently with 4~
shipping firm opcrated by his members in the Diet. This
brothcr-in-law as an executivc. number is short ot the 50 needed
COPYRIGHT: Mainichi Daily News 1982
CSO: 4120/261
5
FOR OFF[C[AL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9
FOR UFFI('IAI. USF: ONLY
POLITICAL AND SOCiOLOGICAL
SUZUKI CABINET'S DIFFICULTIES DISCUSSED
Tokyo MAINICHI DAILY NEWS in English 2 May 82 p 2
[Article by Takuo Hayashi in the column "Political Periscope": "Suzuki
Cabinet in Distress"]
_ [Text]
It has now become quite clear phenomenon will occur in the However, even it the flotation is
that the fiscal 1981 budget 1982 fiscal year beginning from cut by 1,380 biliion yen in the
suftered a huge "shortage ot April 1982 through March 1963. original budget, if the (lotation
revenue." According to It is also speculated that ttte is increased Sy 3 tNltion yen by
Finance Minister Michio revenue shoctaqe fn the flscal the supplementary budeet, the
Watanabe, the revenue shor- 1982 budget will run up to 3 total amount o[ the deticit-
tage amounted to more than triliion yen. covering naGonal bonds i~
two trillion yen. Fiscal 1981 With regard to tiscal 1982, the tiscal 1982 will be more than
began in April 1980, and ended government needs to compile a that in fisca11981.
in March 1981. Since the tiscal supplementary budget to cover Supplementation of the tiscal
� year in question has ended ~e shortage and ~ubmit ~t to the 1982 budget, however, is not an
already, the necessary fiscal Diet for approval. But, where is immediate task for ~ the
steps to (ill the deficit will be ~e revenue source to cover the government. Compilation ot a
taken by the authority of the deficit? It seems that flotatiorr supplementary budget and its
government. The government of deficit�covering national submission W the Diet by the
does not have to compile a bonds is the only means government usually takes place
supplementary budget for that available. sometime after autumn. So. the
purpose and obtain Diet ap- government can take time, at
proval. Most ot the ex- FloatingOf Bonds least severai months, with
penditures tor the purpose of ~e government, . in com- regard to the question of
making up ihe loss has to be piling the fiscal 1982 twdget, cut compiling a supplementary
covered tiy the 1983 tiscai ~e . amount ot the deficit- budget for tiscal l~tt2.
" Dudget to be compiled this year. covering national bonds to be The immediate headache for
There is little doubt that there tloated by 1,?d0 biliion yen the government is what to do
will be a big shortage ot ear- compared with the origina11981 with the compilation o( the 1983
nings for the tiscal 1982 budget buAqet: This was done on the national budKet. it is towerd the
which was approved early in . basis ot Pr~me Minister Zenko end ot this year that the
April. The biq shortage of Suzuki's pubiic pledge that "by ~overnment wili makc a
revenue in the tiscal 1981 budget making the flotation of the decision at its cabinet meeling
resulted trom the tact lhat the deficit-covering national bonds on the draft budget. But, it has
tax revenue was tar below the nil in tiscai 1984. the [iscal to make a cabinet decisfon at an
original estimale due to the reconstruction must be earlier date on the.guideline
slowdown ot the economic achieved - and tor that pur; wilh whlch various ministries
growth rate. It is believed ~~e tlotation of such bonds will tile a roughly estimated
almost, certair~ that a similar should be reduced every year."
6
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9
FaR OFFICIAL USE OtiLY
request with th~ F'inance But then, we must question if
~linistrv. such is really possible. The
The ~overnment at a c9binet Finance Ntinistry believes thai
meetin~ on June 5 last year "althougi, great etforts must be
decided on a strict guideline made to realize a large scale
calling tor a"zero ceiling as a reduction of expenditures, thal
maiter of principle." The 1982 alone is not enough to balance
budget was compiled on the the revenue and expenditures." ,
basis of such a strict guideline, Then, is it possible to cover the
and yet it is expected that the revenue by increased tlotation
spending will exceed ~evenue ot deficit-covering nationat
by about 3 trillion yen. bonds by withdrawing the
public pledge ot Prime Minister
OutloOk Gt'im Suzuki calling tor "reduction of
the flotation ot such bonds to
The economic foreca~t for make it ultimalely nii in tiscal
(iscal 1983 is extremely grim. In 1984?" That would mean the
case the government, in political suicide ot Prime
compiling the 1983 budget, cuts MinisterSnzuki.
the deficit-covering national 'Jltimately there seems to be
bonds by 2 trillion yen com- no means but a large-scale
pared with the ori~inal 19R2 increase of indirect taxes. Since
budget, it is speculated that an income tax c~+t is inevitable
there will be a large-scale for fiscal 1983. an increase in
shortage ot revenue, amounting indirect taxes is believed
to 6 or 7 trillion yen, in com- necessary not only to make u~p
_ parison with the necessary ior the loss resulting from such
expenditures. an income tax cut but also to
The usua! "zero ceilin~" ensdre a large arnount o( tax
guideline is therefore in- revenues.
sufficient to balance the tiscal The government has already
1983 budget. An extremely started to hint at such a move.
drastic "minus ceiling" will Can Prime Minister Suauki
have to be introduced. In other actualiy carry it out. There are
words, aside from a few ex- now some signs within the
Liberal-Democratic Party to
ceptions involving defense hold the prime minister to task
spending, overseas aid ex� and rebel against him. The
penses, etc., almost all ex- Suzuki cabinet now faces the
penditure items must be cut on b~ggest crisis since it was
a large scale compared with the inaugurated.
expenditures in fiscal l~d?. ~,Tl~e writer is. fournalist-
_ prolessor at Musashi Univer-
sity in Tokyol
COPYRIGHT: Mainichi Daily News 1982
' CSO: 4120/261
7
FOR OFH'ICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500060056-9
FOR OFFICIAL USE ONLY
~ POLITICAL AND SOCIOLOGICAL
FARM LOBBY OPPOSES ZNCREASED IMPORTS FROM U.S.
~ Tokyo THE DAILY YOMIURI in English 24 Apr 82 p 2
[Editorial: "The Farm Lobby"]
[Text]
Agricultural organizations and political parties
are stepping up .their opposition to the freein; and
expansion of farm imports in the face of US de-
mands that increased imports of farm produc~a be
included in the second market opening package to be
decided at a meeting of economic affairs minister~
on May 7. NLeanwhile, the US has moved to discon-
~ tinue talks at the Japan-US trade subcommittee and
will take the farm import issue to the General Agrec-.
ment on Tariffs and Trade (GATT).
The Agriculture, Forestry and Fisheries Commit-
tee of the House of R.epresentatives Thursday sdopt-
ed a resolution that proper steps should be taken to
avoid sacrificing farmers and fishermen in respect to
the liberaiization of residual imports : estrictions and
expansion of import quotas.
Forward-Looking Stance
We don't object to the resolution itself. But pre-
sent import curbs on f$rm and fishery products ahould
nat be allowed to stand. Imports of beef, oranges
- and juice ahould be tackled not only from the view-
point of Japan's responaibility in the free wortd but
also from the position cf the people's interest. Thp
government needs to take a forward-looking stand
on expansion of import of farm aad fishery products.
T~e plann~ed second package should reRect such
a basic attitude although there rriay be no time to
~ work out specifics. �
We hope Prime Minister Suzuki will not heed only
the atrident voices of agricultural lobbies but will
reach a wise and r~easonable decision as the nation's
top leader.
In this respect, the open ~ circulars issued Thurs-
day by the Conaumera Union of Japan showed an
$
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPR~VED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9
FOR OFFICIAL USE ONLY
extreme attitude in their dentands for protection of
domestic agriculture. They called for complete self-
sufficiency in grain=both for food and fodder-and
for revision of foreign dependence on staple foods.
We have to doubt whether theae demands truly re-
flect the consumers' attitude.
Anachronistic Thinking
Such thinking is anachronistic. Japan's present
producti~n of beef, pork, chicken and eggs and con-
sequent improvement in the people's diet was made
possible only becauae of vast grain imports.
Incalculable funds will be needed if the grains are
to he provided solely by domestic f.armers. And,
_ even if complete self-sufficiency should be attained,
it �~ill he impossible to maintain the current standard
of dict.
O~~erprotection of domestic agriculture will only
pro:tuce a minus effect.
VVc c~eplor.e the senseless statements of the con-
sumcrs' union. Such groups should defend the in-
terests of consumers. This is especially so in a so-
ciet,y where the producers have too much power.
1'Ve hope the government and consumers' group will
tackle the agricultural import problem from this
, standpoint.
( April 24 )
- COPYRIGHT: The Daily Yomiuri 1982
CSO: 4120/261
9
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R004500064056-9
FOR OFFI('IAL U5E UNLY
POLITICAL AND SOCIOLOGICAL
ACTIVITIES OF LDP FACTIONS REPORTED
Tokyo MAINICHI DAII.Y NEWS in English 28 Apr 82 p 2
[Article by Takehiko Takahashi in the column "Nagatacho Doings": "Meetings
Held Actively by LDP Factions"]
[ Te xt ]
P r i m e M i n i s te r Z e n k o Despite such voices, the view the paMy saying, "Isn't it about
Suzuki's term ot of(ice as held by many is that the Suzuki lime tor the ~ Suzuki ad-
president of the I,iberal- administration may stiU Con- ministrationtowithdraw?"
_ Democratic ~ Party will ter- tinue tor some time. � The reasons tor this ar~ as
minate in November. It the This is because, ditfering tollows:
1.UP decides on Suzuki's cnn- from the case o( the Tanaka. I11 As the boss of a faction,
tinuance as party president. it Miki, Fukuda and Ohira ad- Suzuki became the prime
will mean that the Suzuki ad- ministrations (the last named minister witpout any effort. The
ministration will rnatinue for having ended with Ohira's earlier�mentioned tour -
twomoreyears. sudden deathl, there seems to Tanaka. Mikf. Fukuda and
Voices are heard within the be no infinence iatent on Ohira - took care ot their
Liberal-Democratic Party. brin~ing down the Suzuki ad- followecs over a long period of
saying. "one year tor a singer, ministration. time and spent a great deal ot
two years tor a prime The Suzuki administration money. ~Even then, their
minister." This means that was born with the support ot r.espective administrations
recent "singing stars" are three large tactions within the ended atter two yeacs. Prime
generally made much of for LDP - the Tanaka. Fukuda Minister Suzuki became the
about one year only and it is and Suzuki tactions. Under prime minister without spend-
customary tor a prime minister those circumstances, there was ~nq money, so two years
to bow out at the end ot his two- no way in which Yasuhiro should be sufficient.
year term. Nakasone and Toshio Komoto ~ Z ~ The biggest reas~?ns tor
T h e E i s a k u S a t a~ a d- could oppose the move. Both the aRgravation of rcl~tians
ministration was an ex- Nakasone and Komoto have W~~ the United States are the
ceptionally lengthy ~ one that become cabinet ministers prime . minister's statements
lasteci (or seven years and eight supporting the Suzuki ad- and actions since the Japanese-
months. The Tanaka, Miki, ministralion. AmeMcan summit of May last
F u k u d a a n d 0 h i r a a d- ' year. In order to imprnve
ministrations that came atter SuZUki's R81gtl Japanes~American relations,
that each ended in about two � it is necessary for Prime
years. This is how the saying. The circumstances have not Minister Suzuki to step down
`~two years tor a prime changed. This is the basis for tromhispost.
minister, originated. The the strong opinion that the ~31 Prime Minister Suzuki
supposition is that the Suzuki Suzuki administration wtll stiil has made a political pledge to
administration will not be an continue. Nevertheless, there ~~rehabiiitate public fmances
exception to this rule. are voices smoldering within without a tax inerease." For the
10
FOR OFF[CIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R000540060056-9
F'OR OF'FiCIAL USE OtiLY
.)apane..se economy trom now The Tanaka taction, which
on, it is necessary to do the holds the key to the life or death
Economic Seven-Year Plan ot the Suzuki administration
over again and to carry out a has also begun to move. A
drastic conversion ot economic meeting ot this faction's
policies. Since a wron~ stact "Nanoka Kai" consisting ot its
was made, it is up to a new Dizt members elected less than
administration to revise this. tive times will be meeting
Although such voices are in May. A meeting ot the
smoldering within the party, faction's members who have
when the question ot the paMy been elected to the Diet
presidential election in from six to eight times. and a
November comes up, eveu meeting of those with ex-
those criticiiing the Suzuki perience as cabinet ministers
administration possess no will be held in succession. It is
strategy. The only thing visible said that tormer Prime
is that meetin~s of various 1~[inister Kakuei Tanaka will
f a c t i o n s c e a 11 e d s t u d y attend the last-named meeting.
meetingsl are being actively When politicians gather, a
held. crystallization ot energy occurs
The Nakasone faction held a and thece are otten cases ot an
larqe meetin~ on April 16. The unexpected political move
Fukuda taction held a two-day becoming initiated.
study meeting al Hakone on
June 19 and Z0. The Komoto It the various factions are to
taction u~ill hold a study hold their meetings while
meeting from Sept. 4 to 6 at Prime Minister Suzuki is
Hakone and this wil! become traveling abroad, this must be a
that tacti~n's national con- matterotconcernfocSuzuki.
ference to form ~~a study I,ppking toward November
meeting tor new policies." The when the party president's term
Naka~awa faction is also ot office will expire, the at-
planning to hold a s2udy mosphere within the LDP is
meeting. likely to become disturbed.
In the midst ot these activities ~The wriler is an adviser to
by . the various tactions, the the Mainichi News a rs and
Suzuki faction is adopting a formerchieledrtorlai w~'ter).
prudent attitude so as not to
excite the other factions.
COPYRIGHT: Mainichi Daily News 1982
CSO: 4120/261
11
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R000540060056-9
ruec urr~~~w~ UJ~. UNLY
POLITICAL AND SOCIOLOGICAL
LDP'S IDEA OF THINK TANK EXAMINED
Tokyo THE DAILY YOMIURI in English 30 Apr 82 p 3
~ [Article by Ken~i Kitahara in the column "Political Beat": "LDP's Think
Tank"]
[Text]
It may seem odd but the ruIlng Lib- seen in the ruling Social Democratic Pur-
eral-Democratic Party (LDP) appears to ty of West dermany.
want to establish a"Soviet-type" govern- West C~ermany's ruling party is led by
ment-party regime. Willy Hrandt and the government by
The thought strlkes our mind when we Chancellor Helmut 3chmidt. High-level
hear the words and watch the behavlor poHtical policymuking, auch aa atrategy
of LDP Secretary-(3eneral Susumu Nikaido ugainst the Sovlet Union, la gres~ly in-
and LDP Pollcy Board Chairman R.oku- fluenced by the party.
suke Tanaka, although what they are do- It ia not known ii Nikaido's think tank
ing has been malnly motivated by thelr concept haa been formed after taWng into
rivalry with Chlei Cabinet Secretary Kll- account Lhe casea of the 8oviet Union and
chi Miyazawa. West dermany. But the concept calls for
Nlkaldo and Tanaka, who control the forceful actlons by the Liberal-Democratic
core of the party, now are anxious to Party to lead the nation's bureaucrutic
create a"think tank" us ~ party policy- setup into productive work, !n place o!
making organ. It aould include retired its usual token obedlence~ as was done
bureaucrats, scholars and engineers spe- by the party in trytng to aolve the trade
clulizing in advanced technology and iriction with the UB and European coun-
wonld make decislons whlch need hlgh tries.
political iudgment. But competitlon over hegemony oi for-
In practice, these experts would form a eign poticy between Nlkaido and Miya-
group of advisers who would work in the zawa and a strong feeling of rivalry as
process of policymaking. Naohiro Amaya, "new LDP leaders" between Miyazawa and
former director-general oi the Natural Re- Tanaka also certainly seetn beMnd the
sources and Energy Agency, and Kenichi idea.
Koyama, professor of C3akushuln . Univer- Although using a policymaking staS !n
sity, are mentioned as possible members the party to gain stronger influence over
of the think tank. the government's pollcymaking ia an un-
Nikaido is well known !or his abhorrence derstandable tuctic, it may all come to
of bureaucrats. The ldea of the think naught. '
tank devoted to party-led policymaking Even though the slogan "the party's lead-
was conceived when he aerved aa the chiet ershlp~' haa ita appeal, the "new idea"
cabinet secretary of the Tanaka cabinet moat certainly will run lnto extreme dif-
in 1972. Sculties, Hke adminlstrativc reform, in
Although i refened to a"8oviet-type" confronting the buresucracy. And the bu-
regime, this method is not llmited to the reaucracy after' all dfapenses benellta to
Soviets. A similar phenomenon is alao its irienda.
COPYRIGHT: The Daily Yomiuri 1982
CSO: 4120/261
12
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500064456-9
- FOR OFF7CIAL USE ONLY
ECONOMIC
LDP DIETMEN'S VIF.WS ON U�S. REIATIONSHIP
Research Comad.ssion Head Co~ents
Tokyo THE DiAILY YOMIURI in English 25 Apr 82 p 1
~Article by Hyosuke Niwa, chairman of the Liberal-Democratic Party research
com~aission on comprehensive agriculture: "Japan Cannot Afford To Liberalize
Fa rm Imports"~
~Text~
It has been pointed out in ~ a result Japaa''s food
_ the tiS that the trade i,m- sel!-sufflciency rate. stands
balance between Japan and at 53 percent in terms of
the US is due to problems calories. This is a very low
faced by ioreign goods, par- ~gure among advanced
ticularly agricultural prod- countries. � ~
ucts, in gaining access to
the Japanese marxet. El~orta Made
But the Japanese market In vlew of such facts it
~ is not as closed ag the U3 is evident that Japan has
thinks. It is wide open. made eSorts to liberaIIze
Japan has been contribu~- agricultural products, has
ing greatly to the develop- oSered its market to the
ment of trade in agricul- rest oi the world and has
tural produce while over- contributed to .the preven-
coming fts dif~lcult domestic tion of trade imbalance.
situation. Japan is also paying
Japan's imports of agri- greatest consideration Yo
- cultural products have ex- expanding import quotas
panded year by year and it
has become one of the for goods with residual im-
world's targest importers. port restrlctions.
Accordfng to the latest Nevartheless, protection
statistics. Japan suffers of Japanese ' agricultural
from a de8clt o! ;9.8 billlon pr�lucts is criticized. Un-
in tcrms of trade in agri- like industrial products.
culture, forestry and flshery agricultural produce in-
- produce while it enioys a volves diPllcult problems
surplus ot a13.3 billion i:i which cannot be settled ac-
terms of the total trace cording to the prlnclPles of
balance. free trade. The U3 and the
Imports ot ugriculture, EC hs~ve protective mea-
forestry und flshery produc�e surea at their borders for
total ~10.2 billion and their agricultural products and
place in domestic consump- there is no reason why only
tion has risen from 39 per- Japan should be the on:y
cent to 99 percent for cereal one to get the blame:.
forage and four percent tu Agriculture dces not iust
'29 percent for beef !n past provide food, an indLspensa-
20 years. ble necessitq in people's
llves. It also serves an im-
13
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/42/09: CIA-RDP82-00850R000500064456-9
FOR OFFICIAL USE ONLY
ports?nt role in stabillzing tries, it ought to De stated The pllght of Japanesa
the economic and sociai that we cannot meet the
development of a country. farmers is such that pro-
In this sense it exhibits a demands oi cur criWcs. duction of some goods is re-
trait ~that cannot be reg~i- Although it is pointed , stricted because of oversup-
lated by the free trade out that the Japanese peo- ply: As a result they are
principle alone. ple would like the freedom suSering trom dwindling
to buy cheaper beef and incomes.
U$ .41so i~as ~nrbs oranges, Japanese agricul- Japan i~ now attempting ,
^ven the US, which is the ture is aimed at increasing ~~tb build~`up' t]ie stiveture of
largest exporter o1 agricul- productlvity and ,maintain- its�agrlcultural. aector iry re-
tural produce, has one item ing domestic agrlcultural organizing production tech-
under residual import rest- production in order to meet niquea and lostering "core"
ric!ions and more than 10 Lhe demands of people in-~ farmers.
items on restricted import. cluding conaumera. ~ Serious Damage
The EC malntatns protec- J a p a n e s e agricultural ~~raliyation will heavily
tive measures for 60 stapla products, particularly those damage this proiect and aa
items through variable sur- which need vast tracts of a result Japanese agricul-
charges and each member land for production have to ture will have no brlght
country haa its own sepa- set rather hiBher prices prospects. ior developmel~t.
rate import restrictions ior compared to lmported goods: ' E'~ren whea residual im-
other items. But the price diSennce is part, reatrictiona are llited
Japanese agriculture is dwindling thanka by prlce in accordance with US de-
in the disadvantagPOUS setting which takes im- mand~ it will be impossible
situation where an average provements .in producttvity to correct Japan's . trade
farm is one-150th~ the 'size into account. surplus oi ;13.3 btllion aith
of une in the US and the What concerns the Jap- the US only through thla
price oi farm land is 30 anese people !s that domes- measure.
times the US. , t1c agricultural production Ii ao, demands for liber-
it is almost impossible alone cannot even supply a alization are certaln to be
for Japan to overcome such total calorie equivalent to accelerated. As my stand
conilittons and matc:i fo*- what was available aronnd favors protecting Japanese
eign countries. 1945 just after the war. agrlculture, I must avoid
Japan is constantly try- Crowing Corecern taking such an action as to
ing to build up its agricul- Under the circumstances, jolt Japanese agriculture.
~ tural structure but the cur- there is growing concern It is only natural to in-
rent residual import rest- that a secure food supply crease the rate of self-suf-
rictions are the flnal step be maintained and the Diet flciency in !oods as they are
, which Japan cannot con- has unanimously adopted ~s lndispens.ble to all the peo-
cede. resolution aimed at building ple. In ';his sense it is ne-
It is very unfair to critic- up seli-sufHclency in food. cessary for Japan , to en-
ize only Japan's residual Given these factors Japan courage policies aimed at
import restrictions. cannot liberalize i~.nports of enhancl~ng productivity to
If the rate of increase in agricultural products. Even enable Japanese agrlcultural
imports of agricultural if they are liberalized, the products to compete with
products and the residual eftect would fall far short foreign products in terms
lmport restrictions are com- of correcting trade imbal- of prices in any difflcult
ance. situation.
pared to foretgn coun-
14
FOR OF'FICIAL USE ONI.Y
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9
FOR OF':FICIAL USE ONLY
Congress Urged To Change Policies
Tokyo THE DAILY YOMIURI in English 26 Apr 82 p i
~Article by Iichiro Hatoyama, member of the House of Councilots: "US Should
Pursue Different Economic Policies"~
~Text~
Senator ponald W. R.ie~le months of thls year. Tlie
singled out the sutomobile r1se seems to be quite na-
trade i5siie and said lie had tural because auto aalea in
introduced a bill calling�~i'or the US depend on the gene-
u red.ictioi~ of Japanese ral economic perfortnance
uto imports to 14 peraei~G~ there.
~r ~s saics. ~ High Interes~t Rates
Last May, we enforced The present U8 admi-
voluntary auto export res- nistration is pursuing a
traint recognizing that the policy oi . 8trict monetary
automobile industry is equ- restraint, hlgh interest ra-
ally vital for Japan and the tes and a strong dollar ln
US and that we must pre- its Sght against inflation.
. vent the US auto industry One result has been a steep
from unrecoverably sufter- 1a11 in housing starts to a
ing by a sharp rise in Ja- yearly level of less than
panese auto exports. 900,000 units, a level only
Although Lhe curb toak a half of the peak years.
the form of a unllateral For automobiles, the im-
Japanese action, it was ac- pact may not be so severe
tually the result of negotia- as housing, but a sub-
tions between the Intema- stantial sales decline is sim-
tional Trade and Industry P1Y inevitable.
Ministry and the U3 Trade Last year's auto sales !n
Representative, the US were 8,530,000 units,
Just before the restraint a drop oi 450,000 from a
went into its second year Year earlier. There might be
in April, we snade it knowri a lurther decline this year
that our auto exports would if interest rates remain on
be limited to the same I,- the same high plateau.
880,000-unit level as in the Japanese automobiles are
Srst year. The annoUnee- $~u and the strong dollar
ment was welcomed by the Bjves them a price edge. It
US Trade R,epresentative. ' ~ ul~ely their share !n the
Our auto export reduction US market will rise this
to 1,880,000 units last year Year as well.
resulted in a 3 percent de- In mY opinion, the pre-
cline from the preceding sent U8 poliey o! ttght
year. We made the promise money should be shifted as
and carried it out 1n good soon as possible ta restore ,
fuith. a normal level oi interest
A certain senator who rates.
visited Japan in January There has been a sub-
urged us to malntain the stantial easing of inflatio-
restrafnt at 1,680,000 unlts nary pressures in the US
u year. He did not press for and price rises are being
a fu:ther cut. Therefore, held within a yearly rate
Senator Riegle's insistence of 8 percent.
took us by surprise. Mtt~t Switc% Policy
He :nade the point that When i visited the U8
the Japanese share in the recently as a member of a
US auto market rose to 24 Liberal - Democratic Party
percent in the 8rst two mission headed by Masumi
15
FOR OFF[CIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R004500064056-9
FOR OFF'ICIAL USE ONLY
P:tiakf, I was fnlormed of operation between Japanese of the Esaki missfon to the
bunkruptcles of housin~ and U3 automakers. It is US and Europe, the central
loan insLitutions. There my deep regret that Sena- topic was freer access to
must be a awitch in the tor Riegle called it a breach Japanese markets. Today,
economic ~olicy and I count of promise. we are doing our best look-
on the in8uential members Car Industr VitaI ing ior an optimum second
oi Congress to press for it. y package to respond to their
If and when the US in- The auto industry is vt- calls.
terest rates come down to tal to both countries. There Aimed At,./~ an
is a need for broad co- p
a normal level, a rise of operatlon. Tallcs are under The import curb bill pro-
700,000 to 800,000 units in Way for possible prqduction posed by Senator Riegle
auto sales would not be seems to be aimed at only
difficult. in the U3 by one of the Japan. Bills of thia sort do
top Japanese automakers.
Senator Riegle also point- I hope 3enator Riegle takes nothing ~more than dash
ed ont we had reneged on a long look at thls problem. cold water on our ongoing
our earlier promises to pur- F?nally~ I have to discuss programs to open our mar-
chase more US-built auto kets.
the choice between protec-
p�i~. tionlst and free market No other times require so
My personal survey show- strong a need for partner-
principles to rule the in- ship among free oountries.
ed that Japanese auto- ternational trading systein.
makers are invariably try- Western countries have so It can be a.ttained only
ing to increase their pur- far abided by the free trade through a further expan-
chase of US par~s. Last principle. It ahould not sion of global trade, not
year, the flgure came to mean unlimited Ireedom reduction.
~80 million. This flgure that lets the weak fall prey We are well aware of our
would have reached ~320 to the strong. As admitted faults to be corrected. We
million if we count the US ' by GA'T'T negotiations, each are Lrying so hard to en-
part:s bought to equlp Ja- country can protect domes- hance aur cooperation with
plnese autos 1n the US. tic lndustries W a certatn other countries. Actlon ra-
Ttie talk on our purchase extent. ther than words is needed.
of US parts was essentially During the recent visits And we have to produce
aimed at enhancing co- - solid results.
Avoid Destruction of GATT
Tokyo THF DAILY YOMIURI in English 27 Apr 82 p 1
~Article by Masumi Esaki, chairman, Liberal-Democratic Party�s comaittee
on external economic relations: "US Must Avoid Destruction of Ct4TT System"~
~Text~
More than 10 million peo- There are both pros and
ple are out of work in the cons to . Reaganomics but
US and I saw with my own the ultimate success of this
eyes the e8ect that policy rehabilltating the U8
stugSation had had on its economy is in serioua doubt.
economy. The economic ~lif- On top of this, the US ofi-
ficulties were far � worse year elections ure around
than I had previon~sly the corner.
imuglned. The same can be US leg[slators have .
said of the Europeun Com- focused their growing ~
munlty nations. frustration on the Japan-
The economic problems U3 trude imbalance, which
have now become political is $18 billion in favor o!
issues. In France, the ruling Jupan. They take the eus~
Socialist Pazty led by Pres- way out by explaining that
ident Francois Mttterrand the deterioration o! the US
lost local electiona by a economy has been braught
wide margin !n March. In ubout because the Japanese
West C3ermany, the opposi- market is closed.
tton Christian Democratic In order to cooperate
Union (CDU) overwhelm- with the US and Western
iug'ly won a state assembly Europe in their e8orts to
election in Niedersachsein revitalize their economies.
lLower Sa~COny) 3tate. Jupan has advanced by two
16
FOR OF'F7CIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-40850R040500064056-9
- FOR OFFICIAL USE ONLY
ycars the implementation sides will not onl lead to
of reduced tariffs agreed Y It was agreed at the
upon at the Tokyo round of 1 confrontation bet~veen Ottawa su~triit of seven
multilateral trade negotia- the two countries,concerned industrial nations last year
tions while removing non- but also a8ect third coun- to discuss such a problem
tarifi barriers to a level Lries. This could result in on the basis o1 C~ATT.
similar to that existing in all countries adopting pro- Distt'ibution $ystem
the US and West Europe. tectionist policies.
This would mean the re- Streamlining the distribu-
Cuise Of Reciprocity emergence ot the nteht- tion system wtll contribute
Despite this, moves have mare the world faced dur- greatly to the promotion of
been made to submit pro- ing the Great Depression trade among industrially
tectionist legislation to the in the 1930s. There is a advanced nations and, in
US Congress under the proverb which gces: "Only this sense, Japan must im-
guise ot seeking reciprocity a fool makes the same mis- prove the situation.
whtch, in the true meaning take twice." In connection with Ja-
of the word, is a concept Since the early 1800s pan-US trade issues, Japan
- that can be equated with when the Monroe Doctririe has been voluntarily res-
the spirit ot fatrness. But Prevailed, the US policy has tricting exports of automo-
the problem is the content been to ensure a self-suf- btles, steel und electronics
o[ the proposed "recipro- flcient and independent na- equipment as requested by
city" btlls. tionul ecanomy, thc US.
Many . of the proposed The US, the world's lead- It w~s decided in I~Iurch
bills run counter to the ing economic power, must to limit the export of auto-
spirit of the General Agree- avoid the mistake o2 de- mobtles to the TJS to 1.68
ment on Tarifis and Trade stroying the GATT system million units in Sscal 1982,
IGATT). and introdLCing protection- the same level as in the
ism, which would only previous flscal year. US im-
For example, the bill sub- bring nbout clzaotic condi- por~,y irom. Japan account
mitted by John Danforth, tious for the economies of for 13 percent of total US
chairman of the Senate the world. imports , whtle Japanese
finance subcommittee on In this respect, the bill imports from the US
international tr~de, is de- proposed by Senator Willi- amount to 9.4 percent of
signed to allow retaliatory am V. Roth (Republicun- Lhis count~ry's total.
acttons to be taken in con- Delaware) is more moderate
nection with ordinary trade thnn other "reciprocity" la Japan Reaponsible?
if problems arise in the legislation. Is Japan really responsi-
field of services and invest- ~yith the revision last ble for the fact that 10
ment. ~ million people are out of
year of the Foreign Ex- work in the US when we
The deflnition and objec- cliange Control Law and consider these flgures and
tivity ot the bill remains the enactment in Aprll of compliant rnoves on the
obscure but it is feared that tlle new Banking Law, Ja- p&rt of Japan?
the bill's provisions would pan gives foreign com- The economlc situation in
be applied u~ any time tile panies the same treatment the US has become so seri-
liS felt like it. in the flelds oi services, ous that the U8 is calling
Application of such a bill banking and insurance as on Japan to take posltive
means that a COillltl'y can that granted domestic action instead of inerely
arbitrarily ignore interna- flrms. Therefore, no prob- debating the lssue. Now Ja-
tional trade rules based o?i lems exist in this respect as pan is going ahead with
t.he GATT which ~uarantees far as Japan is concerned. new plaas on its own re-
f;itr, equal und free trade. Problems in the fleld o! sponsibllity to revitalize the
servlces in the ~?roader economies of the West.
Retaliatory Steps sense lnclude those. involv- The US ;should use a
A country, which finds ing distributton. True, the sense of proportion and
itselP the object of distributlon system, whlch take tl~.e initiative as n
trade restrictions through i~ based on long-standing leading advocate ~ of tree
the "rectprocity" principle, traditions and customs, trade in collecting idefls
mi~;l~t retaliate :iiid repcat- should be streamllned but irom all coi~ntrles ln the
ed retnllatory steps by both it is unreasonable to taCkle Western bloc to establish a
thSs problem on a bllateral new economic order.
basis.
17
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9
rvK ~rr~~~~L U~~ UNLY
Trade, Defense Link Noted
7~,kyu 'I'li~ D~AILY YOMIURI in English 28 Apr 82 p 1
- ~Article by Kichizo Hosoda, cliairmar. of House of Representatives ad hoc
couarittee on security: "Americans Link Defense With Trade Issue"~
- ~Text~ ~
US opinions about the de- Fie also criticizes Lhe
fense of Japan in the past argument, often heard' in
= couple of years have been Japan, that foreign eid is
- . extreanely diverse. Since more important than !m-
_ lus~ sutumn, various re- psoving the nation's de-
solutions have been sub- lenae capability. .
mitted to Congress and Defense and trade prob-
from the beginning of this lems are not connected, he
year the defense issue has asaerra. OPtlcially the two is-
been~ dfscussed, together suea may be separate but
aith the trade problem at the Japanese must bear , in
public hearings and other mind that they are in fact
forums. insepsrable to Americans
1V~r Levin's arguments regardless oi what they may
seem to me to be a reitera- say,
tion of what has been said ~
in these discussions. They Mr Levin proposes thst
are persuasive and exurie Japan should make the
common sense and if we minimum necessary defense
Japanese question thelr elfort. He saya that Japan,
validity or oppose them we~ ~ a member of the Western
will be, in Mr I,evin~8 'camp, shouid "make an
~~orda, "an ally whose con- equitable contribution to our
cerns for its oavn sel!lak~, common defenae by achiev-
economic well-being ecllpee ~B~ aa soon as possible dur-
what ~hould be s more ing the 1980s, the real mili-
lmportant consideration= tary capability to undertake
maintenance . oi mutual its own defense to the ex-
securit tent articulated by the
Y, peace a~! demo-. Japanese C~overnment's own
cracy o1 both nationa." defense policy statements
I would Iike to brielfy and agreed to commit-
comment ' on some note- ,
worthy. points in Mr i,eviti~a ments.'
article. In general, he ac- He'says that Japan should
cepted the Japan-U3 ioint undertake the defense of its
declaration lssued by Prime sea-lanea up to 1,000 miles
Minister 8uzuki and Pres- from its coast and contri-
ident Reagan last May and bute to the security of the
Prime Mlnister 3uzuk!'s Pac!!!c.
speech at the National The 7.754 percent growth
Press Club � in Washington in defenge spending in the
which, in a se~se ia'a com- 6overnment'a Ascal 1982
mentary on tha 7oint state- budget, he aaya, is in~uffici-
ment and he urgea Japan ~^t and the argument Chat
to honor tha commltments th~a growth ratc !s higher
- 1E made. He saya thia !s of than tha: :or social welfare
serious concerr~ in Japnn 8nd Lherefore demonstratea
aa well as the US. . the government's good faith
is accepted only !n Jape?n.
Dilference Ite Views Siu Of Bud et
. Mr Levln also mentSons g
the threat to peace, free- The afu of Japan'a de-
dom and democracy men- lenae budget !a far removed
tioned in the Japan-US from the sacritlces being
~oint statement. R,egretta- made in the U8 to procure
bly, I must admit that funds for defenae.
there is a considerable dif- When US Secretary o! De-
ference in views on this fense Caspar Welnberger
point between the Amer- recently vislted Japan he
icans and the Japanese. met avlth Japaneae C3overn-
18
FOR OFF'[CUL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9
FOR aFFIC[AL USE ONLY
ment offlcials and called for mittee for improvement and
greater d.efense eSorts in expansion of Japan'a defenae
the future. capability and ia atudying
Japan is beset with prob- the problem. It is high time
lems concerning the flscal that the committee wss.
1983 budget, national eco- drawing conclusions.
nomy and administrative It should give its recom-
reform. C31ven thia situation, mendations on such prob-
the goverr.ment and the lems as the 1981 mid-term
Liberal-Democratic Party defense equipment purchase
ILDP) must determine the plan and the percentage ot
size of the defense budget defense spending to the CiNP
which will embody Japan's and endeavor to win public
detense eftorts in the com- understanding.
ing years. This 1s a problem for Ja-
Problem Studied Pan, not the Us. It is a~
The LDP Security Re- Problem related to the basic
search Council, chaired by mutual trust exlsting be-
tween Japan and the US as
Asao Mihara, set up a com- alliea. '
Need To Know Each Other
Tokyo THE DAILY YOMIURI in English 29 Apr 82 p 1
~Article by Toshio Kimura, member of the House of Representatives: "Play it
Cool in Resolving Pending Issues"]
~Text~
A special and close bond Washington, pointing to course for boosting defense
a�as for;ed between Japan an increasingly harah inter- capabilitiea . within the
and the US back in 1951 nationul climute~ expects � iramework oi the conatitu-
a~hen they signed the peace Tokyo to build up its de- tionr �
treaty in San F'rancisco. fense. �~>P'or ~ IIscal ~1982, the de-
Three decades after pass- On the economic front, fense budget has gone up
ing that memorable mile- too, Washington is seeking 7.8 percent .on 1981, despite
stone in their histories, the Japan's cooperation to ease a burst oi outcry aBainst a
tao nations flnd themselves the deepening frietion in marked hike in such fund-
on the thresliold of an even bilateral trade; iTS oPticials ing. The new defense ap-
more mature relationship, also realize the business pic- propriations, backed by
With a host of serious is- ture at home is far trom highly polltlcal considera-
sues hanging over the world, 1O8y ` tions, will cover purchases
such as a direct ~ threat to ~at contribution can of F15 SBhters, P3C anti-
global peace and stability, Japan make to cement its submarlne aircraft, destroy-
the need for a revitalization American bond? What is ex- ers, etc. '
oi the global economy and Pected of Tok~o in unravel- I don't subscrlbe to the
ing a raft of pending issues? oft-repeated crittcism that
a stable development of the .
Third World~ Tok,~~o and Defeflse Japan isn t meeting its
Washington . need to put A resolution presented by defense obligationa.
their cooperation on a still Representative Clement J. The defense budget aslde,
flrmer footing. Zablockf (Democrat, W1s- Japanese-Atnerican coop-
In a broader context, it's ~onsinl points up the latest eration has been anaklnB
needless to say, the Western �ongresslonal bid for Ja- s~ady headway in such
camp should remain closely pan's defense buildup. flelds as ioint strategic stu-
kn1t. dies and war games. .
And Japaneae-US ties ~~�e 8'iYing due heed to ~at I presume nettles
such American expecta- the US !s Japan's psce of
form a ma~or pillar of the tfons, Japan's' baaic stance defense buildup.
Western alliance. is to map an independent -
19
FOR OI~'I~'ICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500060056-9
rvn vrr~~.~wa, u~l, VI~ILY
Thc Amerlcans calculatc der in assessing the eco- They pofnt out that some
Japanese defense spending nomfc relatlons. Notable American complaints on
s?s a percentage of GNP or progress could be cited in Japanese marheting have
of the o~erall budget-an such flelds as industrfal co- obviously been caused b~
approach that isn't neces- operation, investments in misunderstandiags, .
sarily cor.structivP. each other, an exchange of Ja an should o! course
What is essential, as I service industry know-how, tr tpo
see it, .is a deepening of Y project an undistort-
mutual understanding ~d etc. ed image of itself through
a constant swup of views The Americans have been public relations efforts.
on what Japan should and demnnding that lapan But we also would like
can do under the bilateral liberalize its market to just the Americans, above all
security treaty. about the same extent as Congress and the Reagan
A revision of the treaty the US has already done. administration, to study a
has been called for both in What's missing in the bit more about Japan.
Japan and the US. Is there American argument is
any need for the amend- acknowledgement of each JaP~, in fact, has taken
ment? The ^ountry's marketing peculi- $ series of steps over the
act is 1 Y ari;les which could be link- i~st couple o! months in-
functfoning. p prO ~erl ~ ~
ed to its socfal evolution, cluding tariff cuts on some
ECOnomic Ties customs and so forth. items Lwo years ahead of
True, both countries are An obJective yardstick is schedule as agreed on in
confronted with knotty hard to come by in decid- the Tokyo round of multi-
economic problems, yet one ing whether this market is national negotiatton; To-
can't deny that Japanese- open or that one is closed. kYa has also done away
American commerce hns And emotionalism lends to wlth or relaxed nontarlff
nowhere. barrlers, simpli8ed import
yielded some dividends, The Jlpanese usk: Procedures and opened the
beneflting both. Why do Aren't overseas reports go- Bovernmental Offlce of Trade
some people overlook these in too far about the Ombudsman.
plus factors? g
An unemotional, well- "closed nature" of the Jap- Such efforts should be
balanced approach is in or- anese market? mutull; u"buy Amerlcan
drive." for lnstance, cun be
dfspensed with.
COPYRIGHT: Th2 Daily Yomiuri 1982
CSO: 4120/264
20
FOR ORFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-40850R040500064056-9
ECONOMIC
.
TOKYO COLLOQUIUbl DISCUSSES JAPAN, WI~RLD ECONOMY
Tokyo THE DAILY YOf�4IURI in English 12-16 Apr 82
[12 Apr 82 p 5]
Need for CooF.~ration Flith Other Nations
[Text ] The followi:~g is a posi- pan's, per capita output for forced to impose political
tion paper presented by both items in the US was settlement because of eco-
Seikei University Professor about half that fn Japan. nomlc ditriculties experi-
Miyohel Shinohara, who This massive production, oi enced in other countries or
was moderator at a recent course, cannot be complete- in defense a~alnst the ac-
symposium held in Tokyo ly absorbed within Japun cusation that it is getting
~~nder the theme "Japayz in itself, and the steel and car "iree ride" in military
ihe Context of th~e World industries in particular security affairs.
Economy." Excerpts of the have grown increasingly This has led to the im-
discussion, including the and overwhelmingly de- pression in Japan that the
moderator's notes, are car- pendent on export. established economic prin-
ried on this page in flve Japan now exports about ~iple of free trade is gradu-
instalments beginning to- half o! its sutomobiles and ally bein~ overruled. But if
d1y. about one-third of its steel, international negotiations
Participants were Heinz and this has inevitably be- are being conducted in t}~is
v~'. Arndt, professor errreri- come the source of severe manner, it brings to tlie
tus, Austraiiun National friction over tracie with fore the questlon as to
University; Dick Wilson, other countries. whet.her such negotiations
writer on Asian uffairs; The problems ensuing ~might be reduced to mere
Saburo Okita, chairman, lrom the phenomenll ~n- bar~;aining with no basis i~1
Instltute for pomestic and ~rease in Japaii's economic consistent principles or
International Policy Stu- strength may be divided restr:?1nts. To avold this,
dies; and Susumu Nishibe, between those involvic~b the every ePfort must be made
associate professor, Tokyo industrially ac3vanced na- to discuss free trade in its
Liniversity. tions on the one hund, and specifle, concrete contexts.
The symposium was or- the Third World on the A new economi~ principle
~nnized I?y Tokyo Collo- other. This same distinction must be identifled that
qulum 1nd sponsored by is one that must be mudc tnkes into concrete consid-
The 3~omiuri Shimbun.- when consfdering Japan's eration all the various
Fditor. role in internAtional societ.y p:oblems we now confront
* * ~ as well. in order to achieve a bal-
In 1950, the production of Trade fricti: tt~mong the ance in the world economy.
cri~de stecl in Japan was industrially advanced na- To what degree should
only 5.5 percent compared tions is now the foeu~ of the princlple oi Pree trade
u~ith thnt of the US. For attention all over the world. be modifled? How should
ni~tomobile production, the Just as did the US before industrlnl cooperatipn and
percentage� was alma5t zero. it, Japan now strongly ad- e:cport restrictions be im-
In 1980, Japan surpa.ssed vocates free trade from its plemented? It is t}iese
the US by 10 percent 1n ~~ndpoint as a strong eco- questions to which tl~e Sn-
both crude steel and suto- nomi ; power. Practic~lly, dustrinlly adranced n~.tions
mobile productlon. Essen- however, !t lias encounterr.d must direct their eSorts at
tlally, then, since the U8 many occasions where it is zchieving u consensus. In
populltion is double Ja- 1ny event, it is dangerous
21
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500060056-9
. .,i.~. ~
:~nd unwise tn allow the er~tive system among the emphasis is glven to uni-
}~olitirat settlement ot such advanced nations so that vers:~lity at the expense of
matters without reference recycling of oil money will cultural unit;ueness, dialog
to a qiven unifying prin- promote the expansion of can easily become one-
ciple. production in nonoil-pro- sided, as has often been
Anoiher important ques- ducing developing countries. our experfence in the past.
tion is how Japan's eco- In the world economy in ~ A� powerful country, for i~:-
nomic assistance should the remaining years of this stance, anay end up expl~it-
respond to the diversifica- century, no single, domin- ing weaker countries if it
t.ion among Third World ant country will be able to insists on free trade with-
countries. First of all, with control other r.ations. Eco- out proper attention to the
regard to the least less- nomic multipolarization will full economic context. In
prevail; it will be a dy a- this sense, all nations must
developed countries (LLDC), mic time of "eatching up" strive both to apprecilte
Jnpan should naturally em- in whlch newly industrlal- each other's cultural peculi-
phaslze humanltariaii re- izing countries (NICs) wlll arities and to identify those
Ilef for the starving, its catch up with advanced na- things that 1re unlversal or
aid corresponding to the tions, and developing coun- commonly shlred.
basic humzn necds of these tries will in Lurn anake Some people tend to
~oi~ntries. As tor the NICs gains on the NICs: The think that the Japane~e
i nrwly industrializinq coun- bargatning power of the management system is uni-
t rics i or those countries Third World es ciall of
~S�}~ich will soon "gradt~lte" ~ ~ Y qiic, tha.t is, so lacking in
the otl-producing countries, t~niversaliLy that the prin-
fro:ii the status of devclop- will increase, making it an ciple of free trade cannot
in~ country, J1pan's eiTorts era of negotiation. Econom- be strictly adhered to�
sliould be focused on aid ic exchange will force dif- These people do not seeni
to industrialization through ferent countries to be to be aware that avery cul-
trlnsfer of indt~stries from in constant COI11I1]ll11~CAL~OIl ture displays universality to
J1Pan - ie, internationnl ~,yith one another, ushering some degree or other. On
acljustment of the indus- in a,n age of cross-culturll the other h:~nd, there are
trial structure.
Iri its relations with the contact. those who believe iii thc
otl-producing countries, Ja- Great care must be taken universal quallties of Japa-
paii must help to siistain to ensure thnt such con- nese culture so thoroughly
the oil market as a buyers' tact does not result in in- that they tend to under-
' market by cooperating with creased cultural conflfct. rate its peculiurities.
olher countries in concert- We have never been so Jupan's role in interna-
ed ef?orts to convert to much in need of mutual tionfll society from now on
nonoil energy source� and understanding as we are should be ttiat of neither
in energy conservatlon, thus today. An overemphasis on arrogapt lealer nor servile
deterrtn~ arbitrary lncreases either cultural relativity or follower. It must work
in oil prices. It can also uniqueness is undeslrable, together with other nations
contribute to st~bility in !or it could produce con- in Lhe aarld, sharing feed-
tt~e energy. supply by ex- trontation deriving irom back on vital issues of con-
tending economic assis- self-assertion among coun- +cern, and in this effort Ja-
tance to neighboring coun- tries that might prevent pan may be able to play a
tries. Japan must also play effective dialog. At the special roie as coordinator.
a role in building a coop- same time, if too much To b~ conttnt~ert
Copyright: The Daily Yomiuri 1982
(13 ~pr 82 p 5]
['iuxtJ Trade Ro~as and Payments Balance Issue
This is the second of flve Saburo Okita, chalrman,
Instaiments ot e~cerpts ot Instltut0 for pomestic and
discusaion st a recent sym- Internatlonal Pollcy 8tu-
posium held in Tokyo under dies; and Susumu Nishibe,
the theme "Japan and the associate professor, Tokyo
World Economy." University.
Participants were Heinz The symposium was or-
W. Arndt, prntessor emer:- sanized by Tokyo Collo-
tus, Australlan Nstional quium and aponsond by
Univeraity; Dick Wilaon, The Yoatluri Shlmbun.-
writer on Asian sRairs; Editor.
22
FOR OFFICIAL USE ONI,Y
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9
* * * merely torming consensuses to i for. :Cn due cour5e,
Shinohara: Japan's mlu- on an ad hoc basls lrom y
the Americc~ns ovcrcame
ttonship to the internution- tlme to time without flrm this so-ca3led dollar short-
al economy has two differ- principles. age, Rrst by loans and
ent aspects. One is its rela- grants, and then capitll
tionship with the advanced Balance Oi Paymenta exports, and gradually by
industrial economies of the Arndt: Professor Shinoha- ~hange in their comparatlv~e
- world and Lhe other is its ra's reference to the static advantage�
relationship with the Third nature oi traditional trade We don't ever talk about
World economies. theory makea me feel very the yen shortage because
I would suggest that we unhappy. I believe it is at are don't think of the yen
devote uurselves flrst to least ambiguous to re?er to ~ a reserve currency. But
Japan's relationship wlth the case for free trad~ as the prablem of Japan's bal-
the advanced industrial being based on static con- ance of payments, such as
economies. sfderattons.' ManY have it is, is exactly analogous
It seems to me that the stressed the dynamic bene- to that of the US dollar
traditional theory of free fits, including me, on prob- balance of payments in the
_ trade hus bzen based more lems of the developing early 1950s, and the solu-
or less on static assumP- countrles of Southeast Asia, tion is, in the longer run,
tions. However, since the countrles w2ilch stand as bpsically the sf?me.
early days of the growth an increasingly effective ex-
and development o1 capi- ample of the dynamic bene- Seelttllg SCapegoats
tallsm, condttlons have flts to be gained from out- Wilson: In Europe I be-
never been really static. ward-looking policies. ]ieve many people think of
Sometimes it has been the There is a tendency asso- the current relationship
US that has grown and ciated with references to With Japan in terms of a
I~rospered. At other times, Japun as ~ an industrial gind of competitiveness
it ~may be Japan's turn to giant to think that Japan gap. The economic reusons
catch up with the US. can now produce everything for this gap are straight-
In other words, there are mor e cheaply than anybody forward, I suppose, for Eu-
many dynamic factors that else: That of course is the rope and the West in gen-
constitute the world's eco- proposition which R.tcardo eral. In our case in Britain,
nomic development. So even attacked by saying what we are awarN that our in-
though one can argue t2;at matters is not absolute but dustries have not reinvest-
the theory of free trade is comparative advantages. No ed enough in the past, per-
a plausible one, if trade is country can have a bal- haps because they have had
just left to grow as it will, ance-of-payments surplus to pay too Snuch tax.
it maY occastonally hlve a indeflnitely with the whole ~r soCiological reasons
~�ery adverse lmpact upon of the rest of the world. there has been a gradual
some countrles. The most obvious method erosion of the work ethic
ot ad~ustment is either do-
Consldering the nlture of in Britain and in other
the age in which we live, I mestic price chunges or Western countries. This is
ttiink it is high time that changes ln the exchan~e something apart irom the
we reexamine the uccepted rate, and, sooner or later, trade g1p,
if the overall balance of but it has led to
theories oi international payments is brought lnto the trlde gap. The trade
trade. And in light of Ja- gap in itself is not vei�y
an's hnving become such equilibrium, even J1pan will
p importunt. Truly speaking.
1n econom(c iant, it would have a comparative diszd-
g in today's multilateral
- be particularly appropriate vantage in the productlon world trade system, the
for us to reconsider the of some things. competitiveness gap is more
free trade theor The situation reminds one
y~ of the postwar years when worrying because if it per-
The nature and character sists or worsens things Arc
of the Ja anese peo le is we all talked about Lhe
p p terrible dollar shortage. The B'o~ng to be very diPficult.
such that we don't insist In normal times these
on the lot,*!c of things. US appeared to have a bal- things can be absorbed, but
ance-of-payments surplus in a perlod of recession ab-
~Vl~cn faced with external wlth everybody else, and sorption isn't so easy, and
~~ressures, we 1re instend this was interpreted as a so we seek scapegoats. A
~irc,?~e to attempt to settlc dollor shortage. Economists Jnpanese trade surPlus is
ttu~ mntters in a politicnl gradually persuaded poll- i~nncceptable, it seems, o~i
w�:~y. I thiiik this approach ticinns and the public that
is hlghly problematicAl. Lhls was a nonsense con- the sc11e in which it has
V~~hile, realistically, we do cept, thut there wfls ~ dol- bi~ilt iip in Brit.~in ancf
n~~cd Lo take into account l1r shortage only in the Europe todny, whilc ,in
~~litlcal pressure, as lon~ sense that in the postwar American surplus of slmi-
a~ we are a part oi the yeurs British and Europeuns ~~r magnitude goes i~n-
world economy, I think we tried to buy more from the noticed and without com-
;~?tio need a set of ru~es to US than they could aPford mcnt.
falioa�. We should not be So, sensible people on
23
FOR nFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500060056-9
both sides ure trying Lo that it Ls rather uaeleaa to cording to Lhe statistics of
salvage what is salvageable keep blaming each other. the U8, the US was in de-
of free trade in this dlffl- What !s needed is for peo- flcit of $10 billlon vis-a-vis
cult perlod. Thus, it so hap- ple � to subdue their emo- Japan. Looking further,
pens that, on the whole, it tions nnd conduct a Ta- however, we also see that
is the Japanese rather than tionnl dialog. in the same year the US
t1~e Europeans or Ameri- enjoyed a surplus in com-
cans who are azguing for Trade Friction modity trade ot ~17 billton
free trade. Oldts: When we consider vls-a-via the European
Of course, Jupan is not the trade frictions between Community.
in fact a free�trade coun- Japan and the other ad- In that same year Japan
try. There is a large sector vanced nations, one per- had a de5cit vis-a-vls the
oi agrlcultural products- spective that we ahfluld Middle East nations of ~30
items like silk and leather take is that oi a dynamic blllion.
-in whtch Japan is pro- i~nternstional division o! la- Another thing that should
tectionist. For Lhis reason, draw our attention is that
it !s beneflcial if Japan's With such a divlsion oi the lnternational balance
advocacy of Iree trade is labor, over the long run of the US is changing in
tactful. each nation arould, oi terms of structure. When
Japan was not u free course, see a change in its We look at US. balance in
trade country 20 or 30 comparative advantage. In ~ommodity trade, we see
~�cars aBo. It is relatlvely other words, it would lead that the US hns been
rccently that 1lberallzattons to a change in the world- hnvtng a yearly deflclt on
h:?ve been brought !n, and wide trade flow. No coun- ~he order of S25 billfon.
tlie vlew is beqinntng to try, whatever its deslres, q,hereas when we look nt
~pread in Europe that it is would be able to enioy and the lnvislble trade-that is,
most re rettable that Euro- preserve the status q~to.
g In that sense, Japan is trude in services, the US
~~ean flrms did not make a has been enjoying a sur-
bi . enough entr lnto Ja- facing the sa~me competi-
~ y tive challenge. We are al- plus of over ;30 billfon.
~~an 10 or 30 yenrs ago But the sltuution in J~-
when the opportunities ready seeing some challenge pan 1s just the reverse. A1-
~vere greater ;~nd casGs were from the 3outheast Atsian ttiough Japan has a trade
loa~er and . w;+en the bar- nationa, lncluding 9outh surplus in commodities,
gaining power, so to speak, Korea and Taiwan. in t~e when we look at the invi-
of Western enterprise was future we will see a~ addi- sible trade balance, we see
bigger, rather than to have tional challenge from C~i- that each year Japan h~s
left it instead to today, a na. In other words, I think a deflcit oi approximately
time when it 1s uneconomic we need to make an indus- 13 blllion.
for most Western corpora- trial adJustment here in ~ Therefore, I think we
tions to set uP new export- Japan, and, in fact, a pro-
cess toward such change is can say that as far as
ing operations fn Japnn on already taking place. overall current accounts are
a very large scale. As things stand now, I concerned, the situation is
And, of course, the other think we can break down better for the U3 than for
way around, Europe was a the frictlons vis-a-vis the J1pan. It is merely Amer-
free-trade thinking Area iri US and Europe into short- ic1's commodlty trade b:~l-
the 19th century when i; term and long-term prob- ance, her bilateral tr:?de
~~as competitive, but now it lems. balanoe vis-a-vis Japan in
is becoming protectfonist. ~o~ng flrst at , the the commodlty sector does
We have a body in Eng- not show a~d picture.
land called the Trade Po- short-term problem, let me pnother point I have
clte, for example, the US
licy Research Center which ~~ticisms of Japan. Those has to do with the ex-
does a lot of propaganda- criticlsms take difierent change rate. If things
if I may use that word- forma, but in keeping wlth worked as they should,
for free tra,de, puttin~ out a,hat Mr Wilson snid eur- there should be a change
~:ood lntellectual urguments lier, I think they overlook ~n the dollar-yen exchnn~;e
:u~d constantly relating cur- the invislble trade balance rlte whlch would. serve to
rent issues in Brltain to as well as multilateral set- suppress Ja.pan's exnorts.
free-trade principles. I per- tlementa. In other words, However, because of the
~ sonnlly would llke to see Jnpan-US interest-rate dif-
more of this klnd of work Amerlca 1s crltici2ing Jn-
pan solely on the basis of ferential, due magtly to the
and indeed more thinking ~ommodity t�rade. As we abnormally hiqh interest
on things like the role o! ecnomist,s are cont�lnually rates seen in Lhe US at
invisible trade in this whole Asserting, this is an error. Present, the high vAlue of
issue. It 1s the wrong approach. Lhe dollar in rcl~tlon Lo
So my comment comes Looking for example at the yen hns ~erved to spur
down to this: that, trom the trade bulance between JaPanese exports to the US
f.he polltlcal polnt of view, even further..
everybody Ls perhaps at the U3 and Japan for the Therefore, whzt is neces-
fnult 1n thls situation, and Year 1980, we see that, ac-
24 .
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9
r~R crFN~cin~, u~F: ~Ni.v
sary Lo an early solution Amertcan complaints about
is a lowering ot interest the complexity of the dis-
rates 1n the US. tributlon system in Japan
Nationat Interests or elee potnting out to
Eur~peans and Americans
Nishibe: It seems to me that they hs~ve not suf~i-
tha6 as intellectuala speak ciently studied the very de-
out in Japan or abroad, licate oonsumer preferences
they appear to be speaking in Japan.
excesslvely in terms of There is a good deal of
their countries' national truth in this Japanese at-
interests. OP course, no one titude, but if Japanese are �
is free from the ties to the truly sincere about opening
nation or soctety to which the market, we might well
he belongs, but I think make it easier for Soreign
that for lntellectuals to interests to have access to
pl~y a really useful role, the Japanese market by do-
they should free themselves ing something posittve and
a~ cnuch as possible from concrete. That would be a
siich ldentiflcutlon. i would, logtcal thing for the Jupa-
t.l~ercfore, llke to speak up nese to do. In reality, how-
wit.l~out plrticularly identi- ever, I see very little evi-
fying ~myself wlth mY own dence of s?ny positive efTorts
rountry. in that direction.
JiiSt, as the United Kinq- Conversely speAking, how-
ciom in the mid-19th cen- ever, it is highly inoppro-
t.~~ry, which saw itself as prlate for Americans and
the factory of the world, Europeans to be merely
rcg~rding all other nations Rriping about the complexl-
;i.5 clther ruw-matcriuls Ly of Japan's dlstributlon
suppliers or customers for system or the Loo rsophisti-
their country's products, cated nature of consumer
Japan today seems to have preferences. InsLead, Amer-
become an ardent advocate icans and Europeans should
of iree trade, and I do of understand that such com-
course Appreclute Lhe sev- plexity of distribution and
eral beneflts that accnie sophistication and efflcien-
from such advocacy. cy of the entire Japanese
In order for all countrtes economy.
to benefit from free ex- The second ex~mple is
change snd trade in a nbout the well-known asser-
tr�lY voluntary fushion, it tion that the Japanese are
seems to me that you need Workaholics. To me the
conventional trust between Europeans and Americnns
the countries concerned. should try harder to under-
Trade and other interna- stand that the Japanese
tional frictions, whether people can survive only by
you llke it or not, do in- working diligently. Con-
evitably impair such trust versely the Jupanese people
between nations. should also recognize that
In order to demonstrate diligence is neither an ab-
the need for such mutual solute nor a universal value
understanding, I would like in this world. The Japanese
to quote two illustratlons. should know that from the
One has to do with open- viewpoint of the people who
ing up the domestic Japa- don't regard diligence as a
nese market. universal and absolute va-
- All too often Japanese ut- lue, the kind of dtligence
terances in refuting critic- the Japanese are well
ism from America or Eu- known for can indeed be
rope tend to be simed at very mueh o! a nufsance.
countering European and (To be continued)
COPYRIGHT: The Daily Yomiuri 1982
25 �
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500060056-9
(14 Apr 82 p S) ~
[Text) Necessity of Revising GATT Rules
This is the third of five and national economles in sort of constraint on short-
~nstalments ot excerpts ot the process of dynam(c term internationnl c:ti~ital
9iscussion at a receni sym- development. Thnt I think flow~.
~osium held in Tokyo under is what Dr Okita was re-
the theme "Japan snd ihe ferring to as "a dynamtc Britiah Disease
11'orld Economy:' division of labor" interna- Wilcon: Professor N~shi-
Participants were Ileinz tfonally. be snid that he a~as not go-
Arndt, professor emeri- Seen from this potnt oi ing to use stltistics, but
tu~, Australian Nalional view, I do not thtnk tt is t.he one that he did use I
l'ni~�ersity; Dick Wilson, suPRclent, say, to invoke found a little bit in~eresttng.
w�riter on Asian atTnirs; the safeguard provfsions He said thnt nltions sliould
Saburo Okita, chairman, t~nder C3ATT as a cushiott dc11 with each ot.hcr on a
I~~.6itute tor pome~tic and while maintatning the prin- 50-50 b:~sis. Now I fccl
Inlernational Policy Stu- ciple of free trude. compelled Lo renct to thal
dies: and Susumu Nishibe, It 1s not that I am ob- :?long these lines: that wc
avsociate prot~s~r. Tokyo stinately arguing for the find it dltficult enough in
l'niversity. c:?se of proteetion or export our own socleties to ncliieye
The symposium was or- control. My polnt !s that, in eqnnlity betw~en indivldull
~anized by Tokyo Collo- the lnterest of maintalntng human beings - althou~:h
quium and sponsored by the overall free-trade prin- that is something whlch we
The Yomiuri Shimbun.- clple and free-trade frame- strive for, and rightly so-
F.diter. work, it is not enough for let alone to try to achlevc
* * * us merely to practice whlt it mmong nations, ~nd I
Shinohara: Let me Ro the textbooks say. We need :nYself doubt if that would
b~ick to the earlicr vicw I 1 different mix of ap- ever be possible. Indeed
~�~~~ressed about frce trs?d~~. proaches. Japanese diplomat.s 1re .
Tnic thlt Dr Hlberler did Exchange Rate among the Rrst, I think, to
emphaslze the dynflmic complatn privately about
;~spect of free trade, bi~t I Arndt: Dr Okita made, I the d[filcultles of operating
u�ould still like to arque thlnk, a very important in the UN, where you have
that as a system ot eco- Polnt when he referred to nations oi 100, 200, 300 mil-
nomic philosophy, the free- the problem of the imbal- lion people competing on a
t.rlde philosophy was bn.Sed resulting irom inter- legally equal basis wlth
on very statlc conditions. national capital flows in countriea of only a few
Therefore, in discussin~ response to the very high hundred thousand of popu-
~�~~:il world trade matters, I interest rates in the U8. I latlon.
du not thi~ik tt is suPficient. think the sudden burst of ~t me also thlnk aloud
I am not at all advoc~t- exports of Japanese manu- a bit on the topic of work-
factures could be restrain-
i?~~; controlled or managed ed very conslderably if the s?holics. In Britain, and in
i?~ternational trade. I would Europe generally, we have
be especialiy opposed to exchange rate were enabled a erception of ourselves
to adiust itself more to the p
any shlrply increusing, con- current account. This is, I us beaoming les~ interested
centrated flow of certain think, a very serlous prob- in work, less inclined to
merchandlse in certai~i sec- lem. We cannot really ex- work, und that is also of
tors o( the worid economy. pect the US to glve up the course the case here in Ja-
I~i such cases, voluntlry battle against inflation so Pan. But the relative will-
~~~~~ort restrlctions may be ~ang a8 they think thnt ingness to put in ~ood lon~
justified or, indced, mny bc l~fgh interest rt?tes them- hours of work is still Rrent.-
required. selves aSect domestlc mn- er in Jupnn, I woiild sny,
Too dynamic a Krowtli of cro-economic requirements. than in most Europcan
exports ot any particular ~rge-sCale international coiintries. Is this 1 racfal,
:nerchnndise v?~ould indeed capital movementa can, o! ethnlc constituent in the
~~lay havoc wtth, and etfec- Japanese personaltty? We
tivc~ly destroy, the ordcr in course, cauae changes or presume not. From general
~nternatfonal trade, b~~t P~vent changes in the ex- theory, from practicnl ob-
rr�;~Iistic~ily I do reco~;nize change rate which would be servntion nnd llistoricnl
tii:~t from time to time sud- beneficial from the point evidence, is it perhn~.s more
dr~n rfees of new prnducts ot view oi commodtty tlows. n culturul featt~re of tlie
nr sudden incre~ses in ex- Perhaps one way of pre- Jnpanese indivldu:~l whicli
~~orts in tact nftect thF rise venting these Imbalances is relnWvely recent? Thnt is
and f111 of v~rtoi~s n~tlons in the current accoiuit probnbly more Ilkc it., and
would be to Impo9e some fn t�h1t case, ic fs sometliln~
26 ~
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500060056-9
th~t wiU chan4c. W~~ al- just the situation with in- The next point encom-
r~~ady s~e it c~h~nFiii~:, in ternationalky agreed rules, passes the problem thlt Mr
f~r�t. maybe we are at a tlme Wilson ralsed and Professor
One could puc it in this When the (3ATT itself needs Shinohara touched upo.n.
u�ay perha~~s, that while reconslderation and restudy. Under the present GATT
the Japnne~e are ~;~t~hing In my own vlew, in order rules, it an industry, for
the British dis~ase ~nd be- to produce new rules for example, the US automobile
c;oming less hard working, (3ATT that can bear the industry, wouldn't get back
maybe the Britons are still burden of changing worl~ on its own feet even with
in fact ~oing down l,he economlc conditions, we some kind of grace period
tlippery slope still 1t thls must consider the followi~:h for self-adjustment, such
moment Lo lower de~ths of points. an industry should be al-
lcisure orientltion, and First, I do feel that we lowed to disappear from
t his 1s perha ~~s 1 h~imin need safeguard provisious the face of the earth. But
trend all over thc world. of some sort, even if only realistically is such a
l.aw Of Jun,qle for Lhe purpose oi address- course , acceptabie? Not
Okita: E~rlier I talk?d ing the question of the so- quite, unfortunAtely.
ahout the ~}~ort-term per- called torrential export ex- That is why Jlpanesc
s~~ective, and rspecially over panslon. voluntary restraints on ex-
the plst few mont,hs, I However, becau, ~ people ports of automobtles to the
think we have been able to tend to mix to ;ether tlte US, while economically un-
ece qutte substantial solu- matter of countering Ja- justifled, polit.lcally and so-
tions forming to the short- Pan's sudden export explo- cially were something in-
term problems. But when slo~~ and the question ot evitable and unavoidable
we move our perspective to ex~~ort increases from the for Japan.
a more long-term problem, newly lndustrializing coun- One more point has to
that of the competitiveness tries, or NICs, we have not do with the possible inclu-
~;ap, I wonder if European been able to produce any sion of voluntary export
nroducts can really co~npete viable answers. Therein lfes restrllnt provlstons inLo
with Japai~ese products. I the problem. GATT. In addition, there
think this is a}~oint which One solution 1n my view are questions such 1s some
will have great lmnact on might be something along new rules within GATT
the entire problem of frtc- the following lines. We governing scrvice trade, lu-
tion. might conclude an agree- ternational investments,
It I mi ht cite m own ment on some kind ol and further liberalizatian
~ y mutual surveillance me- oj agr(cultaral products.
opinion-and this is a point chanism so that while safe- On all Lhese matters, it
which has been ratsed by Is not sufflcient for gov-
Professor Shinohara as well Buard provisions are being
-rather than trying to applfed to u certain coun- ernments alone to be dis-
try, we can examine the cussing them among them-
pursue the rules under the 4ituation and decide wheth- selves. I think it important
GATT system, each nation er the countries invoking that among econom[sts,
scems to be bypassing them. the provisions are making also, there ou~ht to be ail
In other words, ns?tions are e8orts to facilftate domestfc international comparing of
~ c:irrying out arbitrary, b!- industrlal adjustment and notes accompanied by solid
]at.eral negotiattons on a to improve the efHcfency of theoretical argument so
commodlty - by - commodi- their indttstries. And if thlt all the views, not ju~t
~y basts. It such is the cas~:, those of governnients, m1y
it w�ould appear to me that through such mutual sur- ~ taken lnto account in
�~orid trade is being doml- veillance we Conciude that producing whatever ne~v
n:?ted more or less by the no eSectlve adJustment is directlon or orient:?tion is
law of the iungle. indeed taking place, we can most desirable for revistng
~Vlth this in mind, I sub- then cancel the invocation aATT ru]ea.
mil that if we Are to acl- ot the safeguard provisions. ~mo I~c continucd)
COF~YRIGIiT: The D~iily Yomiuri 1982
(1`_'iApr82p5]
(Te~ctJ Advanced rlations Must Help Third World
'fhis is Lhe tourth o[ flve the theme "Japan 1~x1 Lhe
intitalments of excerpts of 1Vorld F.conomy."
cli.cussion 1t a reeent sym- Participants were iieinz
~ioz'.um beld in Tokyo onder W. Arndt, professor emcri-
27 '
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9
tu~, Auxtralian N:~Liunul in~ sitt economlC growtlt compassed by machincry iii
~'niveraily; Dick Wilson, rate in the order ot ? to 8 the GATT, and is therefore
~vriter on Asian aftairs; percent. Therefore we see likely to be regarded to
Saburo Okita, chairman, that despite hlgher oil some extent as a model for
Institute tor pomestic and prices and the pas.give aid other commodities in the
International Pollcy Stu- policies of the advanced future.
diea; and Susumu Nishibe, nations, Lhe economies of I must confess to beinB
assocfate protessor, Tokyo these developtng natlons puzzled still by the w1Y 1n
University. are showing a real dyna- which the Japanese textile
The symposium was or- mism. I feel that this is a industry has adjusted itself
ganized by Tokyo Collo- point of great interest,. to competition irom the
quium and sponsored by To the medlum-to-high- Third World. It has been
The Yomiuri Shimbun.- income developing countrtes, done w!thout any form:~l
Ed;tor. I think the so-calied Rea- restrictions under the mul-
* * * ganomlcs has at least some tiflber arrangement IMFA~.
Shinohara: The sccond aPPlicability. There is a And Jap1n is thc only in-
topic is ~'Japan :?nd the Posslbility, for example, dustrinlfzed country which
Third World Economics." I that the World Bank can h1s not imposed any such
think it would br. nppro- s?ct as a catalyzer in pro- restrictions. If Third Worlct
moting the flow of private textiles could really enter
Priate to 4.sk Dr Oklta, who ~apltal lnto these econo- fi�cely into the Japanese
is the most distlnRutslied mies. On Lhe other hnnd, I market, !.hen sui�ely there
and well-known person in Lhink Renganomics disre- would be more Lrouble in
t1~15 field, to titart otT the ~1r~s the poor, low-income Lhe Jananese industry.
discussion. developing nations, leaving I just raise this as an ex-
North-South /sstte them, in etiect, as they are. 1mp1e ot something tliat
Okita: I would like just to In any event, I feel that has grown out of u develop-
make a few less ~encral there ls a certain ltmit as ment in commercial and
i�cmarks . The Nort�h-South Lo how :^!~ch private capi- political terms over a pertod
tiiiminit a~as helcf in M~~xico tnl can do for these nn- ut a decude or two, nnd
l;ist, Octobcr, but iL iti not tions. u~hich could perhaps serve
~�ery clear what cont.rib~t- There are many things as a kind of indicator of
tioii this summit made to that the developing nations how tuture Third World iit-
any solution of the North- must concentrate on secur- dustries are going to Ue
ing; namely, food, energy, trea.ted in the Japanese
South issue. Ot cour~e, lt trs?naportatlon and infra- market, anci how actu;~ll,y
w�a~ sald that summit that s~ructures. I belteve whot Lhe problem is Ueing solveci,
a�c ;?rc to conctucL I;lobal ne- may actually be necessary '1'o me there Ls some m)~s-
~c~tiations. Biit it scem that tcr abo~it it.
that a�e haven't seen any 1s to fln3 a means to pro- Y
clelr-cut progress in this mote investment in these Ameriean Lesson
rc~;lyd, eiLh~r. countries from both the pri- Arndt: The poiiit Lh1t
'.Cith persislent :;t:i~;!1a- "1�c and publlc sectora Dr Okittt ttntlcipated was
tion, a desperltely low worldwide. the very marked and ii~-
i economic growth rate, large Teel~nology Tranafer creasing divergence within
niimbers oi unem{~loyed, Wilson: In general I the Third World be6wecn
' tt~e advanced nations now would agree ~ with all the the middle- and high-in-
seem to have much more points that have Ueen mude come and the low-income
interest in their ov:n pro- so oiten, that Japan could countries. And one cannot
blems th:ui those of the play a particularly helpful help but feel that this diver-
. Third World. role in this area, p~rticular- Fence hus very little to do
Another tactor is the ly with economic assistance wtth the international eco-
Rcagan ndministr:~tion's po- programs. Im m~ny respects, nomic order or with any-
licy of emphactzfn~ revita- the Japanese program fs t,hing that happens from
tization by means of privace now respectable. But it does without. The d(fterence is
captt~l, and oC clown~rad- scem to ^.'~e that Jupan hus overwhelmingl)� n problem
i?~~; ~~ublic aid. This rnises the ability to flll gnPg in from aithin, not even hav-
thc question ~f ho~v pri- the European and American Ing to do with natural re-
v:~te capital ot t,he advanc- aid programs which are not source endowment but with
ed nations can contribute being fllled, and very much cultural and other factors.
to the proRress of the poor along the lines that Dr Oki- And one doesn't quite know
nztions. ta has suggested. what the rest of the warld
~ In the countries belon~- Hut more importantly, I can do about this.
in~; to ASEAN ~ A~sociatton wunt to snY somethtng A special issue of l.he
oC Southcltit A~ian Nations) about thP transter of tech- London iournnl "Encounter"
as w�ell zs in olhcr East nology side of thfs, particu- carried a very forceful
As11n crninti�ie~ a�c can ob- larly in !he fleld of textilea, statement of the view tltat
s~rve si~b.stlntial resilience. which is one of the areas of the Brandt Report ptits
Fven recently, most ot' Lhem voluntary export restrnlnts Lhings almost 181~ percenL
� are enjoyin~ and :nalntain- thnt is actually alreudy en- wron~ in si~ggesting that
2$ �
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500060056-9
the probl~ms li~ r~ut.stdc oping countries themselves Okila� Eflrlier Dr Arndt
th~~sc countrfrs. Ant. thrrr is may demand u1d for hu- eaid t,hnt the more human-
stlll, o[ course, thr qui�st.lon manitarlan reasons, Lhe it.irlun atd the US Pxtendecl.
of moral obll~ltlon to try motivutions underlying their the more 1t seems thnt it.
lnci do some6hln~. demands are in reality more W1s critictzed. But I don't
It would be very desirable down to earth. think that is true of a1d
If Japan increased li~r aid Although I cannot be ab- from every source. .
efiort. But I lhinE: what solutely sure, I am tempted For example, when we
happened to the Americans to imagine that, humanism look at the production of
ln the last quarter centi~ry and empathy are not long- rice in Indonesia over Lhe
is a warning to Japati not lasting, dependable . values. past 13 years, we see that it
to expect thanks or popu- Whenever economic Priction h1s doubled. Whereas it used
larity by giving a lot, more arises, I imagine people are to be approximately 10 mil-
aid. The Americlns were very anxious to throw away lton tons, ot present it is
denounced as tteo-Imt~eci;il- any such nlce-soundinQ over 20 million tons. In
ists for h1~~in~ givrn aid--- phrases. i thlnk history has othcr words, Atd in terms of
f~irthermore, l~nvin~,; kiven shown flmple examples of technology transfers as a�cll
most of it from hiiminit,ar- this. us clpital aid extended by
i1n impulses. Having said all that, I the Worid Bnnk, the govern-
I think Japan needs to don't personally have any ment of Jnpun, the Asian
realize that, if it does what good alternutives to offer. Development Bflnk, Aus-
everybody else expects them But at least I think our dis- trllia and the European na-
to do-give lots of more aid cu5sfon should ~�tart wtth tlons, have contributed Co
- the~� will becomc In some the basic a~imission that in quit,e and extent to the
' a�ays a lot more unpopular. the past i~~reign aid has doubling of rice production
Selfishness had rather hypocritlcal un- in Indonesia. Such funds
derpinnings. were used for fertilizers, de-
Nishibe: I would like to I'm afrnid my second veloping new t~�pes of rice.
offer t~~~o rather passive and polnt also sounds equally us for trrigation.
negative sounding notes. negative and passive. Now, In other words, as long
One is related to wh~t Pro- we all take it for granted as ald is uttlized in a pro-
frssor Arnd6 pointPd oiit in that modernization, or in- ductive manner in the re-
cerms of valties one nttlches dustrlalization, is somethfng cipient country, I don't
to aid on the ~round of that the Third World coun- think there has been any
humanism. tries are asking for and repulsion or humiliation on
For example, thou~h Ja- something thut the indus- the part oP the rec(pient.
pan has alwlys had trnde trialized nations encourage. Moral Obligatron
surpluses with many n:~tions But in the long-term view, prndt� In answer to what
Ilke I~idonesia, Th:~iland und if the varlous types oi cul- professor Nishibe said, it
t'~e Republic ot Korea, we tures and civilizations are Seems to me that no govern-
have never thoughL nbout to enjoy real coexlstence, I ment is ever allowed to 1ct
r,hese in any serious way. am not at all sure that we in any interest but thut of
Oi~ly when ~~e have been can apply a monotonous, its own country. And there- ,
criticized by the US and uniform, across-the-board fore t~ lts own people 1
Europe about our enjoying kind ot blueprint for indus- ~o~ernment always has to
' huge trade surpluses has trialization or modernization ftlstify any aid as at least
Japan begun defending it- to all o! those countries, being in enlightened self-
self, trying to justif>~ them. even though they may be interest. And I have never
And only then did Japan demandtng it in order for felt that go~ernments can
become interested in strate- them to get out of their ~ bl:~med for putting their
t;ic ways of giving economic poverty. ntitional interests flrst.
aici abroad. It would seem to me that ~at we would like them to
I do feel that underlyin~ any transier of technolo~y+ do is to act in n more en-
many ot the reasons used or other form of economic 11Rhtened manner. Countries
to ji~stlfy forel~n aid are nid must be carefully re- like Sweden have shown
~clfishly motiva6cd, c:~refully vlewed to insure tho6 Lhe Lhat givtng humanltari~n
caiculated interests. Yet, in technologies oi the develop- ~;inds ot aid is one w~y of
~;cneral, people tend to s1y ed nations are organically jncreas[ng the respect of
that we do ~ivc aid for combined and productively other countries. Not only
humanitarian or "inve tt~y blendcd with tha lndigenous that, such ald can be said
ttr.i(:hbor" rrasons. In fact, culture and social fabric of to be in the long-term in-
~~~�~n a�hen we s.iy, "We hlve each reciptent country. ~rest oi the donor countr~~.
tn hclp thc ~~~~~r anct slve Again, I don't know of uny I~~~eve we ought to give
the ~Ick .~nd hun~;ry chll- ef[ective methods to eSect ald. I think it is the human-
clren," il Is ditti~iilt t.o s~y th1s. I only want to suggest ~tariln duty and moral ob-
that our nid ts not ~�nlcul.ii- that we should kcep this lf~ation of the rich coun-
~d in li~;ht of ~~~lf-int~rests. considerltion 1n mind. trieS.
:Ui~l e~~~i~ thouAh th~ devcl- The onl ~ ~
Indonesian Example y~ otnt ~ woute
29 �
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9
make ls that. in general, we
ought not to think that we
are going to get tremendous
lot ot gratitude from Lhe �
people at large.
i alao agree with Dr
Okita on low-key transfers
of technology. The note-
worthy thing about IRRI
(International R,ice R~e-
search Institutcl aid to
agriculture. ior easmple, is
that IRRI produces new
technology and dcesn't
charge anqbody anything for
it. It ia almost always a free
good, ahereas manufactur- '
ing technology tends to be
very largely protected by
putents. Th1t's a biq prob-
lem.
I'I'n hF cnnt in~i~d ) ~
COPYRIGIIT: The Da.ily Yomiuri 1982
(16 Apr 82 p Sj
[TextJ Japan Likely to Play a Bigger Global Role
This is in~ i~t ot a~e Ties Witl~ US, Europ~ skepticiam together wlth
instalments of excerpts o[ Nishlbe: I would like to their other ~modern vulues.
discussion at a recent sym- refer to cultural tfea, for Th1s ' skepticism expresses
posfum held in Tokyo under instance, betwPen Japan itseli, for example, in their
the theme "danan and the and Europe, and Japan and individue?11sm� It hos also
served to accelerate the
Wor18 Economy." the U8. ro~th of industrialism and
Participants were Heinz Japan's suceess has 1~een democracy.
~V. Arndt, professor emeri- a success in industrialism pt the same time, be-
tus, Anatralian National and democracy. In other ~ause of their individualism,
University; Dick Wilson~ words, !f JaP~ ~s ~r- individuul Europeans have
writer on As~an a![~irs; form~d aell, I think !t has },~en able to establish their
Saburo Okita. chairman, done so in � terma of ma~' oWn little niches oi livelt-
Institute for pomestic snd rial hapPiness and ~ ot hood n.round themselves.
International Policy Stu- egalltsrianlsm. I s~c? pnd they have steadfastly
dies; and Susumu Nishibe, reluctant Lo reCOgniae the ~lung to their old cultur:?1
associsie professor, Tokyo merlt of succesa measured traditions. I suppose they
University. 1n suCh terma. But I think
within Japan's succesa there used their skepticism to
The symposium was or- slow the deatruction of old
aanized by Tokyo Collo- are some problema. traditiona in the face of
~ quium snd sponsorecl by Let's cOmpare Japan and rising industrialism.
The Yomluri Shimbun.- indus~triallam ~and Pd
mo~ But over the t1me, as
F.ditor. European civiltzation cross-
* * * cracy were created by Euro- ed the Atlanttc to Lhe U8,
shinohara: Our third peans aa anodern valuea. At $uch akeptlclam waned and
toPic ia "Cross-Cultural the same time I feel that, lost its ateam. Then, aa US
Contact in the Context of alongside industrialism and ~ivilization crossed the
F,conomic Interdependence. democracy, the Europenns pACifle and reached Japnn
Professor Nishibe will lead hnve always maintuined an tollow?ng World War II,
c,ti thls sectlon and, with- uttitude of skeptleism. 3uch such akeptleiam was weak-
out further introduction, we skeptlciam, I do recognize, ened even further.
~�ill proceed to ~he last has waned over the years. If Japan has succeeded
topic, ~'Japan's Economlc But relative to Japan and industrially and in terma oi
Role tn a Multipolarized the U8, I thlnk Furopeans ~emocrncy, I thfnk such
World." have nlwaya had thls
30 '
FOR OFFICIAL USF ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-40850R040500064056-9
success has, by atid largc, only secondary. told were tt~reatening the
Ueen due to lhe flct th~t Now, in terms o! collec- closure of his factory, would
Japanese havc lotit their tivism, that oi :apan is an quite happily come home
sense of self-skepticism. In open and flexible kind of afterwards in llts Datsun
other words, iii tl~e 35 Years ~ollectivism where voluntary car nnd watch his Hitachi
siiice the end of the Pactflc acttons are always approved television set without feel-
War, t2ie process that Ja- or permltted, as opposed to ing any particualr contra-
p1n has been goi?~g through the Soviet kind of collec- diction. That is perhaps to
has been a sort of pure in- tivism, for example, which put it in rather an extreme
l~oiise breedinR of our own is closed and rigid. There- wny, but I belleve there are
inciustrial ancl dc~mocratic fore, Japun's success is very m,1ny people throughot~t
~�:~lues on the basis of, at much due to the interplay the world wtio are not real-
1r:ist superflcially, Et~ropean of individuallsm-reciprocal ly aware of the place of
- values. individualtsm-and flexlble origin of the things they
1 would not be so simplis- collectivism. And that is are using.
tic as to negatc a]l.thls in how we have been able to There are, of course,
one single stroke. But, I achieve materiul prosperity consumers who do have
think, behind these modern and social egalltarianism- strong feeling about Tapan.
values that have brought or order. And it is wlth such ~~eople
about material happlness While such indlviduallsm that exlsting pre~udlces
1nd social eg111tarianism, ~nd coliectivism may bring and fears can be reinforced
tlicre are perhaps to be about cultural stability in- by Japanese products.
frnind some seeds of decad- ternally-and I think these Somebody mentioned earli-
c~~c~e. And Lhere ts, to some factors do tend to assi~re cr something about indust-
~~cte~~t, a~;rowing risk ot such internal cultural sta- ries in the West disappear-
decadence i?i Japln~se cul- billty-when the natton is ing from the face of thc
tt~r~ today. faced with external politlcul earth. Now Lhat is some-
A second point I have is or milltary pressure, pre- thing that would make a
th;~t Jap1n's snccess is be- ~lsely because of such in- hcadline 1n a British paper.
1i~~vcd by miny oiitsid~ ob- dividualism and collectiv- I remember very dlstinct-
_ scn~crs to be becausc of ism, we do lack funda- ly going to talk to a group
i~i~ique Japanese w:~ys of .mental strength. Because of people in a town in
coliective manlt;ement. Th1t our lndlvidualism is not of England and Rnding thlt
b~~lief h1s a c~crt,ain ;unount the purely atomistic varie- ma~y of them were very
~~t trutti i~i it,. BuL I I.liink ty, our culture nnd in ilci humlllated at the prospect,
it. i~ about t,im~~ tli:lt wc our nationhood tends to as they saw it, of havi~ig
rid oursclvcs such a become somewhat unstable to admit thlt thcy couid
clicliotomous view o[ the when faeed with external no longer manufacture
~~�orld-that ~Tfl~Ril 1'UIIS on pressures. There are numer- cars that were as good as
~~collectivism'~ and America ous examples in Japan's the Japanese. These are
:~ncl Europe oi~ individual- history when we indeed feelings that the Brltish
i.m. We should no lonqer have become extremely un- are forced to endure for
~t~Uscribe to such a siniplis- stable in the face of ex- the simple reason that
t ic dichotomy. To me, there ternal pressure. And, de- they happened to pioneer
- .irc within Europe and spite our ~uccess as so many of these things
cl~nerica botli "colle~~tivism" measured in the terms I that are being passed
;it~d indivldti:ilism, ~~nd so deflned earlier, we have not lround from ~nc country to
it is w�ithin Jap:ui. I think been able to overcomc this anothcr and gotng arouud
:~ny comparition should weakness. the world tod~y. They feel
~tart from tl~is ba~ic as- OgCision-Making now that, the doors bcing
~umption. open to ull, Britain be-
Wilson: I would ]ike to
At the same time, Japa- carry the discussion now came less competltive.
ncse individualism is slight- into the practical sphere of The British are being
ly dlfferent from thc West- actual political and econo- told by thefr offlcials that
~rti iudivldualism in that mic declsion-making, which they must make more et-
o~trs may bc termed a may bear out some of these forL to exporting thinqs
~�reciprocal Individualtsm.' llke Scotch whiskey and
E~�en thou~;'h there :~rc indi- Points.
Going back to something blscuits and cloths and
~�iduais, we 1lWilyS bchave that was said eariter about contectfonery. These are
nr conduct ot~rs~~iv~~~ con- ~Jnpane~e ~roducte' accept- thlnqe about atitch Hritfali
~icicring 1t all titnes the 1btlity 1n foreign markets, ofIlctals spend a lot of timc
contextual relationship with I feel that the products arguing with JApanese o[�~
ottir.r individuals. Iii Ll~e themselves are in fact 1c- flcinl5 in tcrms of gett!ng
Wost, on the oth~r li:ind, cepted pretty widely. The better uccess Lo the Jap1-
individuallsm 1s atomistic; story thnt one used to read nese market.
tl~;~t is to say, tli~~ indi- about the British striker But they are not glam-
~�idual always can~~s first, going to his workplace Lo orous things. They are not
and his contextun] r~~lntions demonstrate u~ainst Japa- thlnqs that you can mlke
~~~it}l other individu:~ls :?rc nesc imports, whlch he wns work. Thcy are rathe~
- 31 '
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500060056-9
. ,
~,:isslvc tliin~s, c~?~~I ;i futt_ chequer of the United has suggested, tliey doii't
t;row�n man in 1 mr,dern Ktngdom said that the fccl. tliey can be sure that
~ociety has no ~~:~rt.icular British are running with thts will stiil be +^ae in 10
~~ride i~i mlkin~ tl~cm pcr- heavy armor on their or 15 years' time. They re-
liaps, whereas a c1r is backs, whereas the Japa- member that a majority of
something thnt anyone can nese are running with just tt~e Germans were pacifist
be proud of makin~. Scotch light shirt and that is the in the 1920s. And it's thls
w�hiskey is rcally just reason why the Brttish are Sort of ambivalence that I
u~atcr aith u little bit of not as competittve in trade think plays some part also
~omething added. That'a as the Japanese. in the thtnking in South-
all. There's no Krcat mcrit Of course, Japan is well elst Asia. It is a real dilem-
in ~~roducinK Lh:~t, it the aware that chan~ea htve ma which I think we all
taken place in the situa- reco �nize.
truth bc told. ti
tion in the Fnr East ns
I spcak likc Lhi~ Lo try Regarding Professor Ni-
well as !n our economlc
to convey some ot the sliibc's remarks, I accept his
t~mot.ions that :?rc aroused Power. People here nre subtle way of saying thlt '
beginning to say that per-
by these developmcnts in the dichotomy betwecn
haps we need ~ more et-
internatlonal tradc :lI1CI to Western lndividuullsm aiid
liclj> to explain some of the fectiye detense system and Ja~~ancse collectlvism !s
' :~n~;cr that nttaches to to realize that we may st~nplistic. But from the
J:ipan. need some incrense fn thc outside-and I think this
Defense Burden defense budget. This oA1- 1~~plics to people in Soutli-
n~on 1s supported by thr cast Asia as mucli as to
Okita: Wc havc bcen government of Jnpan as
tllking about the frtcttons we11. Europeans-the diSerence
lrid fcars betwccn the However, because of our or the outstanding quality
Japanese and the Ameri- bastc policy of conducttnq of Japanese both at home
cans and the Europeans self-defense, any drastic 1nd abroad ls their subordi-
and thc otl~ers. I sense increase in our defense ex- 111tion of what !n the l~Vest
thcse thinKs more strongly pendltures would give rise would be regarded as iii-
v~~hen i visit the European to doubts and suspicions on dlvidualism to traditional
i~ations t�han I do in the the part of other Asiana. I ~alues of loyalty to Lhe
US. One reason for this do not feel thnt we will company and to the nation.
is probaUly that Europeans see any substantial increase And this, I t}iink, is regard-
in ~eneral do not care for in the defense budget of ed by people outside both
chan~e. Japan. But at the aame as 1 strength and as 1
A friend of mine, an time, as I sald earlter, I weakness of the Japanese.
economist from the United do think that Japan can Ou the one hand, there
Kingdom, stated that the play a larger role !n pro- is a lot of thinking in
Uiiited Kingdom had ulways moting world development Southeast Asia and else-
been a very qulet, calm na- in terms of increasing where in the Third World
tlon atid tlic qt~llil.y oi life ~ food production, developing about the Japanese model.
enjoyed by the British was energy sources, and con- "Why can't we achieve
aiid is high. But one day solidating the infrastruc- what the Japanese achiev-
tl~e bloody Americans came ture, especially with regard ed?" The more thought-
into the United Kfngdom to transportatlon. I eon- ful people in the end
as well as tlie bloody sider this to be a conat- say, "It is precisely thfs
Japanese. And tliey started ructive role that would be collectivism in the sense
talking about efIiciency most desirable for Japan of social cohesion, this
and productivity. And, he to undertake. wlllingness to subordin-
said, '~We the British are I believe that more and 1te individual interest to
not hlppy nbout the situa- more people are gradually that of the nation, that l~ns
tion." Wcll, he said this coming to stress that Ju- been the major factor." It
at least half jokingly, but pan should be taking up may be a plrt of the whole
mlybe he was trying to such a role 1n order that business of Confucian vir-
tell me something. our great economic power tues or whatever, or it may
Another point which could be used for the be a part of the whole
could be termed back- world's beneflt. mnrale, where each indi-
Kround for Lhe frictions is vidual Japanese, we are
thlt there is crlticism, ?apaneae Mode! told, '_s reluctant to go
especfally in the US, and Arndt: The Pentagon is home from the otflce be-
recently amonq our Euro- i~rging Japan to make a fore uny other, lest he lose
~~ean friends us wcll, that blRger defense eSort, but n face. That may be untrue.
tt~c Japanese arc enioy- lot uf Amerlcans on the But still there is a ten-
1ng a"frcc rfde" in terms street ure not so sure be- dei~cy, I tUtnk, for Jupanesc
uf internatlonal securlty ar- cnuse, while Lhey might c?c- to feel that to demonstrate
ran~;ements. cept that the maiority of their loyalty, thelr sense of
I recall that u few yeara the Japanese people now duty, and such feelln~s
aKO the Chancellor of Ex- feel the way that Dr Okit~ have more inRuence on the
32 �
FOR OFFICIAL USF ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9
FOR OFFI('IAI. l~~F. ONI.Y
indlvidual's behavlor here mocracy and industrialism
than they have !n Western and the lndigenous trldi-
countries. tional values, formed the
At the same time this is two wheels of the cart
regurded as a weakness, be- supporting the very rapid
cause it does seem to sug- growth of Japan.
gest to people that the In our future dealing with
Japanese will be less mo- many nations, including
tivnted than, say Amer- many netghbor-nations of
iclns for example, by pure Asia, there must be more
commercial considerations. mutual understanding than
You can never depend, the ever before. We must get
Indonesians would say, on reaily to know the individual
the Japanese businessman churacteristtcs of each na-
making a straight proflt tion. This will be an espe-
calculation. If all they 1re cially important tuctor af-
after is the profit of the fecting our economic access
comp:?ny, as fs the situatton to these countries. As we
wltli the Americans you mnke economlc overtures to
know where you are. With these countries, I think we
the Japanese, however, you have to think in terms of
caii never be sure that they culturnl contacts, otherwise
do not put what they frlctlons und tensfon will in-
re~;lyd, or what MITI re- evitlbly arise. There must
~;ards, as the national in- be enhanced mutual under-
terest of Ja~~an ahead of standing if we are to avoid
commerctal conslderations. these frictions.
And even then you are not I see the future role of
siire what llne t11ey are 40- Japan us signiflcant not
inti to take. merely in the energy, de-
Now, I am not sure that fense or economic field, but
any of this is valid or wcll also as equally-or perhaps
taken. But it does seem to even more signiflcant in
me that both these views rendertng a sympathetic
of Japanese behavior, both ear to the vnrtetl~s of vtews
its strength and the weak- and vnlues of various na-
ness, ure st111 very Impor- tions.
tant outside.
Mutual Understanding Many Similarities
Shinohara: ProPessor Ni- Okita: There have been '
shibe emphasized that Ja- many books written recently
~~an's success in lndustrlal- which emphastze the di2-
ism and democracy was be- ferences between Japan and
cause these two values were the West. But today I think
aciiieved a~ithout being ac- there are more similarities
companied by European- than differences.. And i fear
style skepticism. But I feel that overemphasizing dif-
th~t in Japan's case there ferences is a wrong and mis-
~r;?s, tn Lhe plnce of skept- leading approach.
iritim, a set of troditional The major difterence is
~�:~lucs that helped our the difference in the relntive
~~,rowth and development stages ot development. Ja-
nd our success in demo- pan is a reluttvely young,
~�r~cy nnd indiistri111sm. capitalistic society. Twenty
C)i~ly because modern values yeurs from now there will be
~~~~~i�c coupled in Japan wit11 even more slmilarities be-
- t r:~cittionll values havc we twcen Japan and the V~'est
I~~,~~n :?Ule to support the than there are today. Even
~~~ry rupfd economic growth though therc remuim m~ny
t!i:it started in elrly Melji uniquely Jnpanese features,
~~r.~ n~id has continued, par- they 1re only of plrtiul in-
iic~~l?rly in the postwar fluence. Thev nre not domi-
~~~arti. In fact these two nant todly.
i~~~~e~s of values, the extern- ~C~~,nclu~l~�~t)
�~Iiy accquired valucs of dc-
COI''iRIG1IT: Tt:c Uaily Yomiuri 1~82
c'S0: 41~U/2G~.
- 33 .
FOR OF~ICIAL USF ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-04850R000500060056-9
FOR OFFI(;[Al. USE ONLY
SCIENCE APID TEC~NOLOGY
ELECTRONICS~COMPUTER INDUSTRIES' FY82 PLANT,EQUIPMENT INVESTMENT REPORTED
Tokyo DENPA SHIIrIDUN in Japanese 3 Mar 82 p 1
[Text] Emphasis on Semiconductor/IC
The FY-82 plant and equipment investment schedules of ma~or
electronics and computer manufacturers demonstrate a con-
tinued offensive stance. The total combined budget for
Hitachi, Ltd and five other firms is approximately 415 bil-
lion ye~-a double digit (14-15 percent) increase over the
previous fj.scal year amount. The enlargement of the semi-
conductorilC related field remains significant. In the co~-
puter rF.lated category, an expaosion and repletion plan in
keepinf, with a quantitative increase is expected. Ia order
to effect ~ncreased production of peripherals and terminal
equipment accompanying the expansion of OA related mach-
ines, the transfer of production items to other plants and
~ factory "relay out" are expected.
Increased Production of OA Terminals
Hitachi, Ltd will go to a 100-billion-yen budget in th~ FY-82 plant and equip-
ment investment schedule. The firm will directly invest in strategically i~
portant departments. The expanded schedule calls for investment of half the
am~unt quoted above (50 billion qen) in IC/electronics fields. Nippon Elec-
tric Compauy, Ltd will put in 95 billion yen and Fu~itsu, Ltd, 75 billion yen.
The budgets of the three firms together make up 65 percent of the six-firm i~-
vestment schedule figure total.
Oki Electric Very E~:husiastic About IC
In terms of plant and equipment investment according to different categories,
Oki Electric's IC Department designation of slightly under 60 percent of the
total budget for the semiconductor/IC field is noteworthy. Other firms are
putting 30 to 40 percent of their respective budgets into this sector. As
in the previous fiscal year, the firms regard this category as the most im-
p~rtant.
34
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-40850R040500064056-9
FOR OFFICIAL USE ONLY
Likewise, as a result of the LSI trend, the plant and equipu?ent investment in
the computer category is more than ever shifting toward the magnetic disc,
printer and other peripheral and terminal equipment fields; and there is a
s trong tendency to beef up the sof tware depar tment ~
At Hitachi, of the FY-82 budget of 82 billion yen, the electronics category
which includes IC was allotted 34.4 billion yen; and of this amount, the IC
reZated field is expected to receive 28 billion yen. When we include the five
related firms in our consideration, the total IC related allocation comes to
36 billion yen.
_ 46-Billion-Yen Total f or Affiliate Firms �
Thirty-five billion yen are slated for the semi-conductor/IC category in FY-82,
and the scheduled size of the investment in this sector for the five affiliate
firms as well as Hitachi is slated to be a total of 46 billion yen.
In the computer related category, the Kanagawa plant (99,000 square meters)
which manufactures mainframes, is operating at ~ust about full capacity; thus,
= its expansio n must be considered. But the Odawara plant (75,000 square
meters), which deals in input/output equipment and outside memory facilities,
and the Asahi plant, which hand"ies minicomputers and office computers, are
said to have some reserves, and there are no plans to expand these facilities.
10 Billion Yen for Computer Category
Nippon Electric Company (NEC[ FY-82 budget was 85 billion yen. Of this amount,
the semiconductor/I~ category captured nearly half (41 billion yen) the total
amount. Its computer allotment in the meantime has reached 10 biilion yen.
This firm has transferred a segment of the Fuchu p lant's magnetic disc section
and office computer production to the Ibaragi Nichiden plant, which was com-
pleted toward the end of last yearo It has started construction of a second-
ary-phase plant with the same dimensions as the first-phase p].ant and is work-
ing on a plan to make the former into a mass production computer factory.
In April 1982, Niigata Nichiden, which has increased its production lines, will
start producing OA Terminal 5200 Model O5, in addition to printer production.
Thus, in the computer related field, NEC's task allotmex?t is as follows:
Fuchu--mainfrane, minicomputer; Ibaragi--office computer, magnetic disc;
i~iigata--printer, OA terminal; Tohoku Nichiden--printer, crofssbar switchboard;
Shizuoka--printer, FAX.
Mita, Sagamihara, and Mizo-no-guchi's electronic switchboard, PBX are slated to
be transferred to the Gamago plant, scheduled for completion in October. The
communications/computer related production format will be expanded and strength-
ened significantly. T'he FY-82 budget of 95 billio n yen, too, will have IC as
its focal center.
. 35
F4R OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500060056-9
MUR UH'MII:~AI. U~~: UNLY
- Totebayashi Plant's Construction To Start
Fu,jitsu's FY-82 budget to 59 billion yen will have an IC related allocation of
- 33-34 billion yen. In the case of this firm, the expansion of the OA, per-
ipheral and terminal facility sections is noteworthy. It will begin construc-
tion of the Kanbayashi plant with a view to making it an OA factory. This ia
due to the fact that the Minami-Tama plant--which is producing the Japanese
WP, financial terminal, printer--has reached its maximum production capacity.
The magnetic equipment will be transferred to theKumatani plant ;13,000
square meters) scheduled for completion in ~une. It is examining the pos-
sibility of establishing magnetic.equipment production at the Yamagata plant
and a personal computer related equipment factory. at the Yamagata plant and a
personal computer related equipment factory at the Miyagi plant within the
year.
After the transfer of its I~series production to Numazu, the Nagano plant is
now the production base for the V-series, print baseboards and magnetic disc
related parts.
Expansion of Sof tware Development
Mitsubishi Electric Corporation's FY-82 budget was 45 billion yen, whereas for
FY-82, an allocation of about 50 billion yen is predicted. As in FY-81 (elec-
tronics related allocation--23 billion yen), half this amount is expected to
be invested in the electronics category.
In the computer related field, the firm poured 2 billion yen into the Kamakura
computer manufacturing plant in 1981 in order to build a 10,000-squarc-meter
building. In addition, it is enlarging the software development section and
is expanding the peripherals and terminals as well as pathologic computer
production lines.
Toshiba's FY-81 budget was 67 billion yen. In 1982, it plans to effect a 6-
percent increase of the construction base. During FY-81, it expended 22 bil-
lion yen in the semiconductor/electronics parts field (20 billion yen in IC
alone) and 8.6 billion yen for the OA, computer related categories. This
amount is slated for expansion of the Hino plant (FAX) and construction of a
new peripherals factory in Oume.
Personal Computer Production To Be Strengthened
As shown above, the main thrust of plant and equipment investment is the IC
section; but in the computer related field, it is expected that the FY-82
plant and equipment investment schedule will continue to uphold the emphasis
shift to the expansion of personal computer, OA equipment, peripherals and
terminals.
COPYRIGHT: Denpa Shimbunsha 1982.
11460
CSO: 4105/74
36
FOR OFFICIAi. USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000540060056-9
FOR OFFICIAL USE ONLY
SCIENCE AND TECHNOLOGY
CURRENT R&D OF CERAMIC ENGINE, STIRLING ENGINE DISCiISSED
Tokyo SHUKAN TOYO KEIZAI in Japanese 13 Feb 82 pp 78-84
[Article by Yasunobu Otori, science co~entator: "New World Unfolded by the
Application of Ceramics"]
[Excerpts] Late last year an automobile powered by the world's first ceramic
diesel engine was tested at the Ceramics Consolidated Research Laboratory of
Kyoto Ceramics located at Kokubu city, Kagoshima Prefecture, and caught the
attention of the world.
Speaking of ceramics, they are not the ordinary kind of ceramics. They are
the fine ceramics (FC) which were developed very rapidly in recent years and
are known for their superior heat resistance, wear resistance and mechanical
strength. The cylinder as well as the piston of this engine were made of FC.
Ceramic development and engine design were started several years ago by Kyoto
~ Ceramics with the cooperation of Isuzu Motors. This engine, which has three
cylinders and a capacity of 2,000 cc, is of practical size.

, Although the people of Kyoto Ceramics modestly stated that "We just proved it
could be done with today's technology," it was no less than a precursor of the
"ceramic engine revolution" which may fundamentally change the present low
thermal efficiency metal engine.
An Engine Which Does Not Need Cooling
Although still in the experimental stage, its epoch-making character is quite
evident from the three cylinders which s tand erect like short chimneys. The
conventional metal engine has cylinders surrounded by the water cooling system
so the cylinders are invisible, and there are also many attachments includir~
a radiator.
The ceramic engine has ~one of these because it does not need cooling. Natur-
ally, the gas temperature inside the cylinder will be much higher and thermal
efficiency will be improved. About 30 percent of the heat which would other-
wise be lost through the cooling water can be saved. If energy in the high-
temperature exhaust gas is recovered by means of a turbocharger or something
else, engine efficiency can be raised 15-20 percent over that of a metal
engine.
37
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-04850R000500060056-9
FOR OFFICIAL USE ONLY
Reduction in weight due to the elimination of ti~e cooling 5ystem superimposed
on the reduction in weight due to small size and ..ight weight afforded by an ~
improved efficiency have a secondary effect on the: improvement of efficiency.
Starting from the revolution of the engine, the revolution of automobiles will
t~lce a new turn. The leading role in this revolution is played by none other
than the FC itself.
Ceramics That Can Withstand High Temperature
Now then, how do people of Kyoto Ceramics who have successfully made a trial
run of an FC engine appraise it and what course of action will they take con-
cerning its practical application?
"In the field of electronic ceramics production, Japan takes pride in its
world dominant position in advanced technology, as well as in thE~ actual re-
sults of its application. The outstanding features of FC include high
strength at high temperatures for which metals parts are useless, so FC can
- be utilized for manu�acturing parts exposed to high temperature and severe
mechanical conditions such as an automobile engine," said Kazuo Inamori,
president of Kyoto Ceramics. He continued, saying: "Metals are not only
susceptible to oxidation at high temperature, but also the best heat-resistant
alloy with superior high temperature strength begins to lose its strength at
approximately 600�C and becomes soft and malleable. They can hardly support
any load at a temperature greater than 1,000�C.
"CEramics are not easily oxidized and there are also some materials which will
not soften at all at a temperature as high as 1,500�C, at which most metals
would melt. Therefore, if an engine that does not need cooling can be made
from ceramics, a revolutionary increase in thermal efficiency can be achieved
(heat loss through the cooling medium accounts for 30 percent of all hsat
losses).
"However, engine parts are subjected to severe and repeated stresses. There-
fore, if the parts (including cylinders and pistons) made of hard and brittle
materials such as ceramics were to be used in mass produced engines, an
extraordinary effort would have to be made to insure their reliability.
"Nondestructive inspection technology applicable to the parts with compli-
cated shapes, such as pistons and rot~rs made of ceramic, has not yet been
established. Therefore, there is urgent need to deve~.op an inspection tech-
nology of sufficiently high accuracy which is also applicable to the manage-
ment of a mass-production process in the future.
"The problems that mus*_ be solved by ceramics makers include, for example,
increasing the strength of the products which are mass-produced; minimizing
the variation in the quality; and manufacturing them efficiently in desired
shapes and sizes with the necessary accuracy.
"As to the means of increasing strength, in addition to strict quality con-
trol during the manufacturing process, strengthening through special pro-
cesses can also be considered.
38
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2407/02/09: CIA-RDP82-00850R000500460056-9
FOR OFFICIAL USE OhLY
"As to machining precision, only diamond tools can be used for machining FC
products because of their hardness. However, because of this hardness, sur-
face slack and elastic deformation during the machining process will be reduced.
FC products therefore ought to be manufactured to high machining precision
with efficiency if the appropriate tools and cutting conditions are used."
Target items for development considered by Kyoto Ceramics include the follow-
ing: automotive diesel engines, gas turbines used in power generation, rotors,
ball bearings, and such important parts as spindles used on ultraprecision
machine-tools, tubes used in high temperature heat exchanger, and the interior
walls of a nuclear fusion furnace (to withstand a temperature as high as
1,800�C). These are all related to the use of FC to improve energy.conserva-
tion, heat-resistance and durability.
The importance of developing an automotive diesel engine (2,000 cc class) using
FC of the silicion nitride family, the favorite of all ceramics, was recosnized
by MITI, and an important technology development subsidy amounting to 120 mil-
lion yen was given 3 years ago to Kyoto Ceramics. The trial production of an
FC engine has been completed. Based on the achievements of the past 3 years'
development, a 4-year plan consisting of second-stage applications research
activities was launched in 1981.
At the sar.~e time, with the cooperation of Isuzu Motors, Kyoto Ceramics will
continue research on the improvement of engine design, the development of pro-
duction technology and measures to bring down costs.
That is, during the next 4 years, the quality cf FC will be further improved;
an engine capable of fully utilizing the best features of FC will be designed
and developed, the number of parts will be reduced significantly to achieve
the reduction in weight, the reduction in size, energy savings and the low
costs so that an FC engine may become practical. This engine is expected to
be a four-cylinder, 2,000 cc one.
Toyota and Nissan Will Also Tackle the Problem
- Although Kyoto Ceramics was the f irst to conduct a trial run with an FC engine,
it was not the first to undertake the development of an FC engine.
For example, Toyota's Central Research Laboratory 17 years ago in 1965 began
its research activities with the conviction that ceramics was the only material
satisfzctory for the future engine.
They have developed their own FC of silicion nitride family sintered at 1,750�C
and found that its strength at 1,200�C was 100 kg/mm2. The fact that this
ceramic was manufactured under normal pressure was judged a favorable condition
for the mass-production of the engine.
As to the prospect of engine development, a trial car with a diesel engine will
be produced by 1985 and practical application will be realized in the 1980's.
An experimental car as well as a practical car powered by gas turbine will be
delayed until the 1990's.
39
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500060056-9

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-04850R000500060056-9
FOR OFF[CIAL USE ONLY
On the other hand, at the Nissan Motors Central Research Laboratory, work on
FC engine parts is also underway. They consider it quite possible to run an
experimental FC car by 1985, but when it comes to~mass-production of these
engines, they feel that t