"PARTNERS IN PROGRESS"

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83M00914R002400010042-3
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 6
• Document Creation Date: December 20, 2016
• Document Release Date: February 27, 2007
• Sequence Number: 42
• Publication Date: August 16, 1982
• Content Type: LETTER

Approved For Release 2007/02/28: CIA-RDP83M00914R002400010042-3
Approved For Release 2007/02/28: CIA-RDP83M00914R002400010042-3
 Approved For Release 2007/02/28: CIA-RDP83M00914R002400010042-3
Mainichi Daily News
Thursday, July22, 1982
.
Ian Fo
again
PIWIM
A~k
Loans US
Firms Advances
A proposal by a Japanese- denominated Japanese loans
American business magnate to have been further increased
extend - low-interest Japanese since the Finance Ministry -in
loans for businesses approved May abolished a restriction that
by U.S. state governments to allowed low-interest Japanese
help revitalize the American loans only to official agencies
economy is expected to make a and organizations related :with
major headway. energy.
Kay Sugahara, chairman of
the U.S.-Asia Institute who Isaji Tanaka, chairman of the
made the proposal, is now LDP's Policy Affairs Research
visiting Tokyo for full-scale Council, also, supports the
negotiations with Japanese program from the viewpoint of
banks. helping to solve the trade
Likewise. William Piez, U.S. frictions.
economic minister ..at the In April, Zentaro Kosaka,
American Eri bassy' in Tokyo, chairman' of'' LDP's Foreign
has negotiated with 'Finance Affairs Research Council, made
Ministry officials at the request the similar proposal in a speech
of U.S. senators and governors at the Japan Society -in New
of various U.S. states. York. .
The plan, called "Partners in
Progress," involving Japanese
Dietmen of the ruling Liberal-
Democratic party, is an im-
proved version of Sugahara's
proposal for a $10 billion fund to
help solve Japan-U.S. economic
frictions, made at a meeting of
U.S. state governors last Febru-
ary.
Already. applications to
finance an estimated 500
business programs worth $50
billion from various states have
been received. Sugahara's
institute will screen them prior
to starting negotiations.
According to Sugahara, U.S.
.government agencies concert-
ed have agreed to guarantee the
proposed loans.
Motoo Shiina, an LDP Diet-
man instrumental in the
promotion of the program, has
high hopes for the program in
the hope to shore up the U.S.
economy which. he said, would
favorably affect the Japanese
economy.
Overseas demand for ven-
Approved For Release 2007/02/28: CIA-RDP83M00914R002400010042-3
 Approved For Release 2007/02/28: CIA-RDP83M00914R002400010042-3
The japan Times Saturday,
Japan Bank Said
Eyeing U.S. Loans The Associated Press
A major Japanese bank is
considering the possibility of
extending low-interest loans to
job-creating programs in the
United States - an idea
proposed earlier this year by
American-born millionaire Kay
Sugahara, a government
member said Thursday'.
Motoo Shiina, a Diet member
belonging to the ruling Liberal-
Democratic Party, said in an
interview with The Associated
Press that "Sugahara's
financing plan just got off the
mark .. . a Japanese bank is
interested in channeling money
into the United States to help its
economic recovery. '>
Shiina. a.. key.,,.figure in.:. -
promoting the plan called
"Partners in Progress,-
declined to identify the bank,
but said it probably would form
a bank syndicate to support the
f loan project.
July 24, 1982
 Approved For Release 2007/02/28: CIA-RDP83M00914R002400010042-3
English translation
of attached article
Nihon Keizai 7/21/82
U.S. SIDE WILLING LOW INTEREST FUND PROPOSAL
"We would like to have the advice and support of the Japanese Government
for the Japanese low interest loan to the U.S. business sectors to help
increase employment" - such letters have reached Ambassador Mansfield
at the U.S. Embassy in Tokyo from several U.S. Senators.
This was to promote the proposal by an American businessman, Mr. Kay
Sugahara, last February, followed my Mr. Kosaka of Foreign Affairs
Research Council in April, who proposed the. Japanese loan to the U.S.
The U.S. Embassy in Tokyo will forward. the U.S. request to the Foreign
Office and ask for their support,
What Mr. Sugahara.proposed was the $10 billion "revitalization fund"
for U.S. economy. Kosaka proposed "Japan/U.S. Economic Ally Fund".
Both of these proposals were intended to invest our low interest fund
5, tzi4 - 4 c~ ,
to the U.S. business which will in.turn contribute to the,(unemployment
problem in the U.S., thus helping to resolve the economic friction
between the 2 nations.
This has raised great interest within the U.S. The National Governors
Association has begun preparations to accept the proposal and several
hundred projects have been sent to the'NGA office. The U.S. Government
also showed positive attitude to support-this proposal when USTR Brock
stated in April, "It would be great if this proposal is finalized."
Approved For Release 2007/02/28: CIA-RDP83M00914R002400010042-3
 Approved For Release 2007/02/28: CIA-RDP83M00914R002400010042-3
However, on the Japanese side, so far there has been no positive approach
at the public financial level. The Japanese Government is showing
negative attitude since "if.we further accelerate the trend of outflow
of funds to the U.S., the devaluation of yen will not stop."
According to some source, several Senators wrote to Ambassador
Mansfield stating, "This is on a private to private basis and not
a government level project but we hope to receive the advice and
support of the Japanese Government. Is it possible to approach the
Japanese Government so to start the machinery moving?" The U.S. Embassy
has already passed this message to the Ministry of Foreign Affairs and
will. be approaching the Ministry of Finance.
On the other hand, on the 20th, Mr. Sugahara has met officials of our
financial circle but can this proposal,which is highly anticipated as
a countermeasure for Japan/U.S.* economic friction, be realized?
Approved For Release 2007/02/28: CIA-RDP83M00914R002400010042-3
 Approved For Release 2007/02/28: CIA-RDP83M00914R002400010042-3
The japan Times Saturday,
Japan Bank Said
Eyeing U.S. Loans
The Associated Press
1~
A major Japanese bank is
considering the possibility of
extending low-interest loans to
job-creating programs in the
United States - an idea
Proposed .earlier this year by
American-born millionaire Kay
Sugahara, a government
member said Thursday.
Motoo Shiina, a Diet member
belonging to the ruling Liberal-
Democratic Party, said in an
interview with The Associated
Press that "Sugahara's
financing plan just got off the
mark . . . a Japanese bank is
interested in channeling money
into the United States to help its
economic recovery.',
Shiina,:,_ key._. ..figure ' in
promoting the plan called
"in Progress,"
declined to identify the bank,
but said it probably would form.
a bank syndicate to support the
loan project.
July 24, 1982
Approved For Release 2007/02/28: CIA-RDP83M00914R002400010042-3