JPRS ID: 8508 TRANSLATIONS ON JAPAN

• Document Type: CREST
• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000100060019-4
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JPRS L/8508
~ ].3 June 19 79
~ ~
TRANSLATIONS ON JAPAN
CFOUO 19/79)
U. S. JOINT PUBLICATIONS RESEARCH SERVICE
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Unfamiliar names rendered phonetically or transliterated are
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Other unattributed parenthetical notes within the body of an
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~ ~ JPRS L/8508
, ~ ~.3 June 19 79
~ TRANSLA~IONS ON JAPAN ~
(FOUO ].9/79 ) ~ ~ ~
CONTENTS ~ PAGE ~
POLITICAL AND SOCIOLOGICAL ~
"e1SAHI': Japan Decides To EsCablish Closer 7:ies With Chi1e
(A,SAHI EVENING NiWS, 28 May 79) . 1
B~iefs '
Leftists Oppose 'ERA' Bill 3
ECONOMIC
E~?pert R~views Roots of Friction With United States
(Fumitoshi Takahashi; ASAHI JANARU, 13 Apr 79) 4
Canadian Ambassador Discusses Japanese Trade, Investment
(Shig Fujitar; ASAHI EVENING�NEWS, 24 May 19) 13
'NAINICHI' Editorial Calls for Review of Aviation Policy . F.
(Editorial; MAINICHI DAILY NEWS,~16 May 79) 17
I`fITY Decides To Triple Government Oil Stockpile.
' (ASAHI EVENING NEWS, 26 May 79) 19
Briefs ' . .
~ MITI Policy 20
SCIENCE AND TECHNOLOGY
- Japan w'ill Push for Joint International rechnology VenCures
(THE DAILY 7~OMIURI, 21 Maq 79) 21
~ U~ Japan .Ioint Jet Engine Development
~ ' (THE DAILY YOMIURIp 23 May 79) 24
' Mitsui, Kawatetsu Develvp Re~�olutionary Coke Process ~
'(MAZNICHI DAILY NEWS, 25 May 79) 25
. - � .
~ - 8 - . [III - ASIA - 111 FOUO]
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CONTENTS (ConCinued) Page
NREA Urges Energy Research ~unding
(MAINICHI DAILY NEW5, 23 May 79) 21
Briefs~
Rainbow Project 29
' MITI Space CommiCkee 29
HTGR Planning 29
Centrifuge Enrichment 29
, Coal Liquefaction Plant 30
� Sh~'pbuilding Computerization 30
Automated Shearing Line 30
Titanium-Clad Aluminum 30 ~
, Image Recording MaCerial 30
Plastic Magnet 30
-b-
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POLITICAL AND SOCIOLOGICAL
ASAHI': JAPAN DECIDES 'PO ESTABLISH CLUSER TIES WITH CHILE
Tokyo ASAHI EVEI~ING N~iJS in Engliah 28 May 79 g 1(DW
, [Text] The government will henceforth eatabliah close relationa with the
military regime o� Preaident Augusto Finochet of Chile, which is a target of
international criticism for human rights violat~lons,.sources disclosed Sun-
day [27 May].
Preaident Pinochet will be invited to Japan sometime after June next year,
and Foreign Minister Sunao Sonuda has added Chile to the itinerary of his
Latin American tour in August this year.
The policy change has resulted from strong requests by formex Agriculture
and Porestry Minister Zenko Suzuki, a top leader of Prime Minister Masayoshi
Ohira's faction within the ruling Liberai-Democratic Part~; the sourcea said.
Suzuki acted on behalf of Japan's fisheries industry, they said. Chile is
very important to the industry because the war$rs off its long coaet are
_ good fiahing grounds.
A visit here by Robeito Kelly, Chile's minister of economy, development and
reconstruction, in late ~1pri1 provided the breakthrough, the sources said.
~uzuki met Sonoda twice around that time and asked for a change in policy.
Sonoda gave his consent and informed Kelly that the government wi7.1 invite
Pinochet to make a trip here sometime after June next year as a state guest. _
Because of the international criticism of Chile, Japan's relations with the
Latin American country have been kegt to a minim~mm.
The United Nations Getieral Assembly has passed a resolution denounding Chile
for human rights violations svery year since 1975. Japan has been voting
for it.
The governmerrt's policy chsnge is bound to co~e under opposition attack in
the Diet. The oppasition parties will see in the change of policy somethir.g
in cc?mmon with the govarnment's attitude towards the 1973 kidnaping of South
Korean opposition leader Kim Tae-chong from Tokyo to Seoul.
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The Japan Socialist Party and the Japan Communiat Party, in parCicular: have
a s~ecial sympathy for the government of Preeident Selvedor Allende, u
Murxiet~ which wae toppled in a bloody milltary coup in September~ 1973.
When Allende roae to power in a peaceful revolution in 1970, they welcomed
it as aetting a pre~edenC for Japan.
Japan's fisheriea industry hae been auffering from the establiahment of
20U-mile national fishing zones. BuC the Pinochet government has reported-
ly responded favorably to Japanese plana to aet ~p fiehing firms in Chile.
' Suzuki himself visited South America in August .lasC year on behalf af the
fisheries induetry.
Strong ob~ections to the change in policy reportedly aroae within the Foreign
Ministry (G~imuaho), bu*. the miniatry eventually decided to go along ae it
was "an order from abowe," in the words of miniatry sources.
. Some Gaimusho officials have eince c~me around to supporting the change.
They say: (1) Chile is domeaCically stable, and the suppreasion of rights
is diminishing; (2) Japan's making an approach to Chile at a time when it is
internationally isolated will be highly appreciated and yield ma~or economic
gains; (3) Some other countries are worae than Chile with reapect ~o human
rights violations, and to bear hard on Chile a~one may conatitute inter-
Eerence in the domestic affaira of that counCry.
COPYRIGHT: Tokyo Asahi Evening News 1979
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POLITICAL ~ SOCIOLOGYCAL
BRIEFS
LEFTISTS OPPOSE 'ERA' BILL--To~kyo, 30 May, JPS--The communist, socialiat
parties, the General Council of Trade Unions of Japan (SOHYO) and five other
, central organizations are to hold a"central ra11y of national united actions
for opposition to the legislation of Ch~ imperial era name, for thorough -
investigation into the aircraft acandals, and the Kim Tae-chung abduction
case," on June 5 at Hibiya Park in Tokyo. The eight organizations are also
calling on the people to participaCe in united actions on that day through-
out the country. The liaison council opposing the legislation of the im-
peri~l era name on May 29 carried out a demonstration calling on the people
to defeat the bi11 for legislation of the imperial era name (gengo). Several
hundred people raised voices, "We need an inveatigation into the aircraft
now. Not the bill for Gengo." The Osaka and Kanagawa prefectural coma?ittees
of tne executive comnittee for abrogation of the security treaty the same day
conducted petitions to the Diet, demanding the scrapping of the bill for
Gengo, and inquiry into the aircraft related acandals. [TextJ [Tokyo JPS
in English 0902 GMT 30 May 79 OW]
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ECONOMIC
,
EXP~RT REVIEWS ROOTS OF FRICTION WITH UNITED STATES
Tokyo ASAHI JANARU in Japaneae 13 Apr 79 pp 12-17
[Article by FumiCos hi Takahashi, deputy chief editor of ASAHI JANA.RU:
"U.S.-Japan Economic Friction in Che Midst o� Che 011 Criais"]
~Text] The "season" for acCivity in United Statea-Japaneae relations
began in April. With an eye toward the Japaneae-American summit talka
in April and the "Tokyo Summit" in June, Foreign MinisCer Sonoda
s tarted thinga off by visiting the UniCed ~tates to begin resolving ~
the economic friction between Japan and the United 5tates and to rush
to repair the breakdown in Japanese-American negotiatione over liberali-
zation of government procurement. Nevertheless, the United States has
taken a hardline stance and has mounted an offensive againat Ja~an
and, in t;~r~,e background, there is unusual. i:.ritation with the breakdown
of President Carter's global strategy. Zn this aense, the recent
friction between Japan and the United States is not simply an economic
problem. It is deeply and cloaely connected with the Organization of
Petroleum Exporting Countries (OPEC) raising the price of crude oil,
with the United Statea heavy-handed caaneuvering for the Middle East
peacc, which brought on the price increase, and with the Iranian
revolution.
Since the United States-Japanese negotiationa on liberalization of govern-
ment material procurement ended in failure, it seems as though the scenario
for resolving the friction between Japan and the United States before
Prime Minister Ohira's visit to the United States may have run into
early tro~~~e. In the view of a high government official who deals with
international economic issues, however, a feeling of confidence in Prime
Minister Ohira has been growing recently within the United States government.
This may be somewhat hard to believe in view of the barrage of personal
letters from President Carter which came after the promise of a 7 percent
growth ~ade during the Fukuda government was abandoned and the post of
minis ter of external economic affairs was aboli.shed. Nevertheless, when
Secretary of the Treasury Blumenthal, Spec3al Representative Owen and
oChers came to Japan one after another in March, Prime Minister Ohira
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ehowed a very poeiCive aCtitude Coward reaolving the economic friction
beCween Japan and the UniCed Stares and rhis, reporeedly, wae rarher
we11 appreciared.
If Prime Minieter Ohira were truly winning appreciation abroad in
proportion Co hia loes of populariry aC home, Chut would be all right
because of Che urgency of reaolving international economic iasuea. The
aituaCion, however, is not thaC aimple.
If Che o Cher s ide, which has �ormed the idea that "Chis ia a person who
can be Crusted," discovers that he ie acCually not to be Cr~seted, then
rhere wi11 be a strong reaction and Che feeling of miatruat will grow
a1L of a sudden. There are high of~icials in Che Foreign MiniaCry who
are seriously concernPd abouC this,
What should Prime Minis ter Ohira do to reapond to the United States trusC
in him? There is only one answ~r. He can only agree to a fairly great
extent to what the United S taCea ~.i~~mands .
On Chis score, there is a view that even the unsatiafactory progresa of
the recent Ushiba-Strauss negatiations on liberalizaCion of government
material procurement was "a plot puC Cogether by the ForeiKn Ministry."
In short, the uperative consideration was that "for the sake of what might
happen later, it would be best Co give the atill alow-moving Prime
Minister Ohira a shock by having the negotiations break down." The
evidence for this is that although Ushiba, who was the government's repre-
senCative for the Tokyo Round (Che M~ltilateral Trade Negotiations), met
twice with SCrauss, who ie the United Statea President's special trade
represenCative, in the end Ushiba did not requeat orders to continue the
negotiations.
Since liberalization of government material procurement is one of the main
items in the Tokyo Round, Mr Ushiba went as far as to delay his departure
for Washington for a day as he pushed for adjustments by requesting increases
in the amounts to be liberalized for Nippon Telephone and Telegraph and
the Japan National Railways. Nevertheless, the result was that liberali-
zation was limiCed to "an amount equivalent to $5 billion." From the -
Japanese newspapers, Washington knew Chis figure before the negotiations
with Mr Ushiba~ It seems that Japan had politically resolved to add on
another $.5 to $1 billion if Mr Ushtba had requeated ins tructions to =
continue negotiations. Howe~�er, the amount the United States is to
;.�.beralize in connection with Chis issue is $12.4 billion and the EC
counLries have come forward with a figure of $10.5 billion, while Japan
is being asked for $7.5 billion to match these amounts. The reason that
Mr Ushiba~ who is a veteran ~vho excels in this aort of negotiation, did
not go ahead and reques t instructions was probably that he decided thaC
the United States could never be persuaded by adding a bit to the figure.
In fact, in Washington, after the negotiations bro~Ce off~ Mr Ushiba
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confeased, "The decision was weak, I am ashamed o~ it but there ia
nothing which can be done about iC," Ae a preae conference af ter he
reCurned Co Japan he said~ "Maybe I was wrong in not requeating in-
structione buC I was not conEident the issue could be settled." Ir has
been said khaC Che main reason the negoCiaCiona were nr~C setCled ie that
the United States presaed a trongly �or the release of mainline electronic
communications equipment and other "hoatagea," buC it is safe to say that ~
the sCatement released by the office oF the United S tates apecial trade
_ representative reflected the atren~th and severity of rhe Unired Statea
demanda to Japan ~ust as Chey stood. The statement said blunCly, "The
Japanese proposal is totally insufficient, United S taCes liberalization
based on the Code of Government Procurement will not apply Co Japan."
Why did the friction be~ween Japan and the UniCed States become so serious?
In some cases, an indulgenC view of Japan's economic diplotnacy has been
pointed out~ There are still high government officials who rack their
brains wondering that "they do not clearly understand why economic
friction between Japan ::~d the United S Cates has come out so sharply
~ aC this poinr in time." Of course~ with the faet pace of the high yen,
Japan's exports to Che United States have gradually slowed down and~
beginning around last fall, the balance of Crade began to improve. At
the beginning of this year this trend was particularly conapicuous; exports
of s teel~ automobiles and televisions~ which are major items for export
to the U nited States, have declined by comparison with previoua years~ IC
is certain that increasing the import quotas for beef and orangea as the
United S tates requested previously, or the matter of liberalizing material
procurement by NTT will not dramatically change the Japanese-United States
trade balance,
Nevertheless, inasmuch as the Japanese-American economic friction has
already gone on implicitly and explicitly for 10 years, since the Japan- -
UniCed S tates textile nPgotiations, even the Japanese side aeems to have
been op timis tic ~ AC leas t i t is safe to say that on the Japanese s ide
no notice was taken of the unusual signals being sent out by the United
States and no measures raken to answer back Chat "Chis time would be
different from the past."
On 18 March~ Che United States Joint Congressional Committee on Economics
recommended an economic policy to be adopted by the United Statea govern-
menC~ This commiCtee clearly suggested Che need for implementation of an
import surcharge by saying in its recommendaCion that it "feels thst it
is necessary to take appropriate unilateral measures to encourage countries
with a surplus in their ordinary balance to fulfill their international
responsibilities." This was not surprising because some people involved
in the Congress were already talking openly about legislation to restrict
Japanese imports; nevertheless, the fact that an official organ af the
Congress produced this kind of document, clearly aiming it at Japan,
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made the people around rhe prime miniaCer finally realize rhe seriouenesa
of Che aiCuation, with the prime miniater's trip to the UniCed S tates
coming up.
'1'he UniCed SCares has mounted an offensive against Japan and in order
to understand why the AmericAn irritation is somewhat differenC from
what it has been up ro now, it is necessary to know the situaCion in which -
the Carter administraCion is placed. What we are calling "economic
friction between Japan and Che UniCed StaCes" ia in fact no longer an
economic problem. It is a problem with very aCrong political avertonea
which is not understood by looking only a t trade statistics and other
economic indicators.
Although Preaident CarCer achieved a rentaCive success by orches trating
the conclusion of the EgypCian-Israeli peace treaty, he immediately
gathered his close associates at his Camp David retreat and began
re~ining a new s trategy on domesCic problems to deal mainly with inflation
and the energy crisis. Editorial opinion in the American mass media
did nat give Carter even a moment of euphoria over the succesa of his
maneuvering for peace in the Middle East.
OPEC held an extraordinary general session in Geneva on 26 and 27 March
and decided to move this year's fourCh quarter price increase forward
and implemenC it on 1 April. It will be a 9.05 percenC increase. Ironically,
since announcement of the price increase came on the day following the
signing of the E gyptian-Israeli peace treaty, iC nicely upset the White
House prediction that "Che signing of the history~making peace treaty
would bolster Carter's popularity for at least 3 days." Not only that,
buC the price increase also made the American people clearly realize
what the resulCs of the Iranian revolution will mean and how sCrong
the Arab reaction against Egypt is.
Although not in as clear a manner as in the oil shock in October 1973,
OPEC has again, in fact, activated "a sCrategy of using oil as a weapon."
With the conclus ion of rhe Egyptian-Iaraeli peace treaty Chrough United '
States mediation, the Arab oil producing countries intensified their
reaction against the United States and the argument that they should
protest Che peace treaty through oil grew stronger. The change of Eace
by Saudi Arabia, which had opposed price hikes in the past, was also an
indication of this atCitude of protest against the Egyptian-Israeli peace
treaty.
Furthermore, the OPEC general meeting tried to display the s trength of iCs
coordination on production, which seemed weak in the past, by mutually .
agreeing thaC simultaneou~ly with Che price increase the counCries which
had raised produc tion since the Iranian revolution would return production
levels to what they were originally. It goes without saying that this
was aimed at making certain of the price increase and was based on the
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consideration rhati the, international aupply and demand aituarion ahould
not become too slack even af ter Iranian produc tion atarts up again.
In the United States, becauae of increases in the price o� gasollne and
other items, the rate o~ increase in consumer pricea for February is ~..2
percent over Che prices for the previous month. As a yearly rate, this
comes to a sharp increase of about 15 percent, twice rhe government's
estimate (7,4 percent). The policy on in�lation ia at Che point of
breaking down. Thus it is probably no wonder that "Middle East popularity"
for Carter did not come about~
President C~rter earnesCly Cackled the ~ob of engineering a separaCe
Egyptian-Israeli peace because exCernally he was pressed for Cime in ~
reorganizing his Middle East policy in the wake of failure in Iran and
domes tically he was pressed to make his movea in preparation for
presidential rselection. Howevar, his efforts invited OPEC's oi1 price
increase and caused inflation ro worsen. Increases in America's payments
for imporred oil and acceleration of inflation both promoCe decline of
the dollar.
When ~he dollar declines, Che price of imports goes up, inflation pro- ~
gresses and the dollar falls further. This vicious circle has already
been proven. The awkward thing is that since the presidenCial election
is coming up next year, the siCuaCion has given rise to the view that
Che anti-inflation policy which was ~nnounced in October last year will -
break down early in its course.
Furthermore, there are serious indications that the recent economic
situation in the United States has become such that it cannot easily
be solved by policy mar.agement which holds down inFlation while controlling
business conditi~ns to a moderate degree.
In the past, business conditions in the United S tates depended on
automobiles and steel, but recently good business condirions have come
to depend heavily on housing construction and consumer financing, These
things are strongly affected by financial policy, but the United States
financial policy cannot now be decided without regard to the dollars
accumulated overseas and, therefore, without regard to trends in inter-
national economics.
However, if American inflation is not brought under control, and continues
at its current high rate, it will seriously affect the international
economy, particularly in monetary matters and trade, At Chat point the
bill for American infla tion moves toward Japan, which boasts excellent
strength in trade and mon~:tary marters, and the schema in which this bill
is passed on in the form of discriminatory trade measures against Japan
is completed .
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~ A~tuglly, in som~ re~peceg it ie inevitgble tt~e Che Chru~t of criticiem
ehould be conc~nerated on Jgpan. Laet year (January through December)
th~ Unit~d S tatee trade dpficit was $2$~450,900,000. The American trade
deficit with Japan eet a record with an all-time high ot ~bout $11.6
billl.on. Th~ deficit with Japan increased by nearly SO percent in compari-
eon with 1977, despite the drastically hi~h yen and cheap dollgre. In
the b~ckground of Chis eitiuation ie Ct~e clos~d nature of Japan'e ielgnd
natidn type nf economir etructure.
In ehort, we have aet up an economy which is arienCed toward exporte ~
' while w~ hav~ set up e cordon of import barriers. In the final analyeis,
however, this ie deeply related Co nur Japanese way of life car way of
thinking and our conceptual makeup. The facC that the Carter government
has direceed the thruat of criticism taward Japan also has very eGroag
reasons, if one uses the Carter government's logic. Thus, what the United
State~ ha~ been decnanding of Japan ie a"structural ad jtiatmeat."
It is also a fact that there are some things on the American eide which
are different from what they have beea up to now. As former Director of
Che CIA Colby points out, legislation in connecCion with Che Tokyo Rouad
must be worked out in the Congress. Ninety-nine countries have participated
in the Tokyo Round, and the long negotiations are entering the final
stages. The intention of tbe develoaing countiies te to decide on their
final s taace at the United Natioas Conference on Trade and Developmeat
(UNCTAD) which opens in Manila in May, but the advanced countriee of Japan,
thp United S tates and ~urope are acheduled to reach an actual agreemeat
(initial an agreement) one sCep earlier, in mid-April. Af ter that, it
, is arranged that the Trade NegoCiations Committee of the General Agreement
on Tariffs and Trade wiLl adopt the agreement formally by a target datP
sometime in July and will have the agreement take effect beginning 1
January 1980. The whole effort, hawever, Will go up in smoke if the
United S tates Congreae does not accept the related legislation. Therefore, ~
Strauss, who is a powerful m~a ia the Democratic Party, is restrainiag
the conservatives in the Congrese on the one hand, and press iag Japan ia
s trong terma for concessiona oa Che other hand. In any case, members of
Congress who ordinarily have had ao interest in trade and so forth suddenly
become active in this sort of situation.
Moreover, it is not the Americaa people who are complaiaing and making
Japan the bad guy. Chairman Lloyd Bentsea uf the Joint Ecoaomic Coamittee
is said to be actually preparing legislatioci Which s~ould levy a surcharge
on couatries s~hich have a surplus balance with the Uaited S tates (it goes
without saying that this is aimed at Japan), and Strauss ie reportedly
tryiag to convince him to give up the idea of proposing the legislation.
The outlook is that if the legislation ie proposed, it will surely pasa
both houses of Congress. S trauss is said to be scheduled to return to the
post of national chairman of the Democratic Party ao later thaa September
to work for Carter's reelection aad he is said to waat to straighten out
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the Crade igeue by th~C time, One view is that iC w~g for thig reaeon
~h~t he demanded concegdione frnm Jap~n, end rhat Che breukdown nf theee
n~gotiaeinne over the liberalization of gnvernmenC pr~curea~ nt was g
gestur~ fnr Am~rtcgn domestic coneumpCion.
,
In hie prpes conference afCer returning tn Japan, Mr Ushiba said, "Maybe
It~presentgtiv~ S Crause Ch~ught it wae to the United 5tates governmeaC'e
and his own advgnrage to have acted as he did. There were probably
domestic coneiderations." Mr Uehiba's s tatement wa~ elso based on Che
view Chat Straues' actions were for domeetic consumption.
Again, in its 1980 hudget proposal (October 1979 through 5eptember 1980)
the Caxter administration put togeCher a"guna rather than buCter" budget
and hae aeked the average pereon to live a more ~useere life than ev~r
before.
In order to be reelected, President Career tausC firet get the Democratic
Party's nomina tion, and Co do that he must geC Che supporC of Che "New
Deal Force,~" (blue collar labor, blacks aad the liberal wing) in the
Bemocratic Party which eupported him in the la~C election in 1976. At
the same time, the hawk faction must be appeased in order to get a two-
thirds conaenting vote in the Seaate on the ratification of the Second
SCrategic Arma Limitation Talks (SALT II). This meaas that the political
dynamics of the Democratic Party and military requiremente demand, rather,
f iscal expans ion.
Neverthelese, in order Co show an inflaCion-fighting stance, the Carter
adminiatration had to put together a tight budget. It is not s trange
that they ahould have used "sanctions against Japan" to avert domes tic
dissatisfaction in connection with CongressioQal debate on the budget.
It was, rather, necessary for them to make Japan the victim.
Why, then, are the bullets not flying at Wes t Germany, Which has a grouiing
surplus in its balance of trade and current account balance just as Japan
does?
It is a fact that West Germany does not have the closed economic structure
of an island natioa. However, the actual situation probably is that even
the Carter administration cannot come out against the reasonable position
of West Germany's Chaacellor Schmidt as it caa agaiast Japan. West
Germany raised its official discount rate 1 percent per year to 4 percent
beginniag 30 March. This means West Germany put up a warning eignal
anticipating the effects of OPEC's incrQase ia the price of crude oil
and iadustry's wanting to raise prices in the midst of an actual recovery
in business conditioas. Since Japan is in enactly the eame situa[ion,
some newspapers reported chat "The Bank of Japan began to study raising
the of�icial discount rate," but Prime Minister Ohira deaied this, simply
saying, "At this point we are aot consideriag touchiag the interest policiea."
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'Th~~ dltu~rion in J:~p~n i~ ~uch Chat it 1~ not pnggibi~~ tc~ Couch thc
offtcial ~Il.n~uunt rge~.
The ~gnk of Japan has already begun to take pric~g ~eridusly. Wholea~l~
prices are ri~ing gr~dually and land priC~e have alsd rieen. A seriee of
incr~a~eg in public utility charg~e ig glso exp~cCed. IC a~ems in~viCable
that the pric~ of th~ y~n will be directly a~fecred by OP~C'e boose of ttie
crude otl pric~ gnd will drop rapidly gnd, conBequently, impnrt prices
wili riee. Thue~, Chere are cn~ny factore which will coneinue to pueh
prices upward. However, with a tight money policy, Che aize of the
surplus balance will swell all th~ more. This would be embarrassing at a
time when the United S tates ie exerting external preesure to open up rhe
market by etimulating domestic demand more in order to reduce Japan'e
surplus.
Neverthelese, West Germany coolly made its decision. If Weat Germany
raises interest rae~s nnw, ttoe only will this further increase the pressure
on thp dollar, but is is probably inevitable that the rift that has for
some time been rumored to exist beCween PresidenC Carter and Chancptlor
Schmidt wi11 become greater. Even at the Cime of the "Bonn Sucomit" last
year, Carter made an ad~ance visit to WesC Germaay to apply presaure, but
Schmidt did not respond and relationa betweea Che tWO men deteriorated.
Could one say rhat the fact that Schmidt looks dos~n on Carter as a
"country paliCician" and coolly takes him on is one of the differences
betwecn the discreet Schmidt and "the Dumb Ox?" _
Nevertheless, Wese Germany and Japan are not in a situation where Chey can
, make com~n~n cause. The EC, too, is faaning the fires of criticiam against
Japan. The surplus in Japan's trade balance With the EC last year was
$6.4 billion, which, c~hen compared with the previous year, representa an
increase of $1.2 billion, or 23 percent. 'Furthermore, becauae the yen
rate against European currenciea has aot risen as much ae it has against ~
the dollar, the trade goods which have been diverCed from export to the
United States have been heading for European markets, actd the surplus
balance with the EC has grown every month aince the beginning of this
year. ~
Whilhelm Haferkamp, vice president of the EC Executive Commission, pressed
strongly for "show specifically by its attitude tt~at it will red~ice the
durplus." Furthermore, Haferkamp expressed dissztisfaction with the
results of his trip to Japan, and at Brussels, just after he had left
Japan, laaked a confidential "Report on Trading Relationships with Japaa"
in a way which could only have been iateational. This report took the
Japanese to task for !lping "a aation of Workaholics Who live in What
Westerners would regard :s little more than 'rabbit hutches."' In an
editorial on this question on 30 March, the British economic neWSpaper
FIIZAIdCIAL TIMES eaid "The EC has lost patience vith Japan; na+ the EC ia
thzeatening to take retaliatory measures if Japaa doea not take e teps to
reduce its surplus within the next several months."
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, 5LnCe ehe poliCicel situation in ehe ~C countries, pareicuLarly in
, Brit~in, France and ICgly, is unsCable, "there ee~m Co be po~iCical
con$id~igCinng h~re, Co~, which are aim~d ae Japan. lr is ae ~hough
America and ~urope ar~ alined rogeeher in an atra~k on Japan, and in
Che midst of this aetack from all side~ ehe d~teg for the Tokyo 5ummie
are rel~ntleegly pregsing clo~er.
If, in ~ degire only to make g succesa of the To~yo Suamit, Japan were
to p~tch ehings up by paying 1ip service, and iC w~re to become known
laCer thaC promiaes were noC kepC, distrusr of Japan would grow evQn
greater. Thus, since thp UniCed S tates and Europe will nor be convinced
as things nc~w etand, the Tokyo Summit could not only be painful for
Jepan, bUe there ig a aerong possibiliCy ChBt iC will be non-produceive
~nd to no purpoae. Kowever, Che past four Cimes summit conferences have
been held thus fgr, they h~ve been basSCally non-productive, so once more
would noe be eo surprieing. It is certain, however, ChaC the Cime has
cnme fnr Prime Minister Ohira eo make a clear decision.
COPYRIGHT: Aeahi Shinbuneha 1979
9111
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ECONOMIC
CANADIAN AMBASSADOR DISCU55ES JAPANESE TRADE, INVESTMENT
Tokyo ASAHI EVENING NEWS in ~nglish 2~, May 79 p 6 OW
[Keport on Inrerview with Bruce Rankin, Canadian Ambassador to Jnpan by
5hfg ~ujitar, date, place noti given]
[Text] Canada provides Japan with the best market in the world becauae it
is Che only ma~or trading partner that does not impose restrictiona on the
importa of Japanese automobilea, color televieion seta, steel and electronic
producta, according to Ambassador for Canada Bruce Rankin.
But he did not think Japan was doing much practically to import more Canadian
finished and semifinished products. Concerning the buying miesiona that
Japan has aent to the United States and the European communities countries~
he said, "I think there's a lot of Windov dressing invnlved. I don't think
they're unsuccessful, but they're not as successful as you joutnalists like
to make out. Japan should get riLd af its non-trade barriers."
Trade Shows Successful
The ambassador pointed out that Canada has had conaiderable auccess with the
trade shows it has been holding at the Canada Trade Center in Sunahine City
in Ikebukuro, Tokyo. He said, "We've had five showa so far, and Che fifth
oae ~ust sCarted on 21 May. It's o~ electronics. The shovs have worked
out rather well. They have been very carefully put together and Well de-
signed, and invitations have been set to appropriate buyers."
"I know that the very first shaw made up of furs and ~eWelry did a million
dollars worth of business in the first week. They expect to do more than
that in the long rua, and the other sho~rs have been similarly successful."
"Canada certainly recogaizes that Japan must export," he Went on. "We're
the only major trading pa~~tner that is not suggesting Japan should restrict
itself in its exports, but we do join other major trading partnere in com-
plaining about the difficulties of access to the Japanese market."
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~OR d~FICIAL U5~ dNLX
Itnnkin did not think there had been any great chnnge in the fundgmental
Japnneee Covernment ~Cand on Crade and poinCpd out, "We atill have henging
he~vily over our headg Che cuetiome inspecCion syatem which can be impused.
They may noe be imposed right now, but Che Chreae i~ ther~."
CiCing the example of import by Jc~pan of Canadian lumber, he said, "Right now
we have no problem of regrgding our lumber. But any Cime eomeone in gnvern-
mznt wanta Co pick up his telephone and say, 'Okay, we start regrading Ca-
nadign lumber, we have lumber starting to p3.le up on the wharfa. They have
ro wait around uneil someone comea around to ~ut his neat little stamp on
egch piece of lumber. The lumber will be there for three montha or four
months; it will rot and warp. This is despite the fact that Canadian lum-
ber standards are recognized all over the world."
Cnndu Reactors Are Safe
As for the accidenC at Che Three Mile Island nuclear power plant, the am-
bassador said, "I think it should improve Candu reactor chances, because
Candu is not a lighC water reactor. IC ia not similar in any way Co the
B&W reactora wiCh wh�Lch they had difficulties at Three Mile Island. The
Candu reacCor has two additional safety featurea which are not found in
light water reactors.
"It should improve our acceptability on safety sCandards, buC instead we
seem to be lumped together with ~verything else as having a risk. We expect
the newspapers to do a little more research in writing their articlea. We
have built into the ECCS--that's the core of the Candu reactor--beyond Che
control of any human being a 20-minute cooling system which is over and
above anything that exists in any other reactor. So that when something
goes wrong, you don't move into the melting stage. You've got 20 minutes
to figure out what's gone wrong and impose other safety measures."
He added that Candu is the "only reactor that was designed and built from
the ground up to produce electricity," while light water reactors were de-
signed originally to propel submarines.
Concerning Canadian manufactured goods sold to Japan, Rankin said they to-
talled $150-180 million a year, a not unsubstantial sum, and pointed out,
"We do $2 to $3 million a year in razor blades. It fascinates me that when
it comes down to a real fine piece of steel to take whiskers off your face,
a country that is the world's largest manufacturer of steel imports razor
blades from Canada."
Gtyod Investment Prospects �
Asked about the prospects of Japanese investments in Eastern Canada as com-
pared to Western Canada where most Japanese investments are concentrated, he
said, "Very good. We 3ust had the Ministry cf Industry from thc; Province
of Ontario here last week. There are some very successful Japanese enter-
prises in that province, including NTN [company abbreviation] in ball bear-
ings just outside Toronto.
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"'rhe nutomotive parts industry has much room for ~ointi enterprises, and iC
has ~ccesa to the eneire Noith American market. IC's the naeural place for
three-way benefits. We would like Co aee Japan utilizing more Cnnadian auta-
motive parea in their own autdmobi.le manufacturing industry. We have n good,
well-trained labor force. 'i'here are all sores of benefies around OnCario,
~nd rhaC part of Canada is a etable area for manufacCuring invesrment."
Aaked about Japanese invesements in the tourist industry, including hoCels,
Rankin said, "There are no special reatriceions as long as iC bringa aigni-
ficant benefits to Canada. That's the sole yardstick for ~udging whether
foreign capiCal--Japaneae or any other capital--comea inCo Canada. We have
American capital in hoeel chaina in Canada, although some of the finest hoCels
are Canadian owned, including the Banff Springa Hatel.
~ "I think that if you're going into an area which is the sub~ect of rouristic
developmenC and you're providing employment in an area where it otherwise
might not be provided, there wouldn't be any problem in investment."
No Quotas on ImmigranCs
Pointing ouC that Canada has no quoCas on immigrants, he said, "Immigration
ts based on the competence of the individual. He is given various points
based on how well he speaks English or French, yeara of schooling and years
of experience. If he's aeeking employment or is qualified to seek employment
in a certain area where men are needed, there is no problem.
"In fact, Japanese seem to be well qualified. They are highly educated,
are hard workers and usually have some capital. We would welcome more appli-
cants from among the Japaneae."
About 125,000 Japanese tourists are visiting Canada each year, although most
of them are currently concentrated in the Western part of Canada. Rankin
said, "There's a growing movemenC to visit Eastern Canada. Special package
tours have been designed to encourage Japanese tourisCs to move more deeply
into Canada with some success. We're getting more Japanese tourists moving
into the Toronto, Ottawa and Montreal area and Niagara Falls. They all wanC
to see Niagara Falls and they all want to stay in the Banff Springs Hotel,
but they're a long way apart."
While admitting that he is impressed at the amount of coverage Canada is
receiving in Japan, the outspoken ambassador minced no words when asked
what Canada should do to inform Canadians about Japan. He said, "No, we
don't think that`s our job. We think that's up to the Japanese Embassy in
Ottawa. Japan has an embassy in Ottawa and consulates-general in Toronto, ~
Montreal, Edmonton and Vancouver. They've got all the ma3or trading com-
panies and 10 Japanese banks in Canada. They've got Cwo Japanese journalis-
tic bureaus. That's your job. Our job is to sell Canada to the Japanese."
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Crowing InteregC in Japan
IIue ltankin added, "I Chink there ia g growing ~.ne~resC in Jup~n among ehe
Canadians, and I think there has been a greater pereon-to-peraon exchange
of knowledge. SevenCy-two of the most senior businesamen in Cangda ent
dnwn with 100 aeninr Jupaneae businessmen i.n TorenCo earlier thia month
in the Canada-Jnpun bueinessmen's conference. And right on the heels of
thae, ~he University of Toronto International CenCer held an extraordinarily
good seminar on Canada-Japan relaCions with top active academica parCicipa-
ting.
The interview was conducted in ahirtsleeves becauae when I walked into the
nmbassador's office with First SecreCary Jack Derksen, the ambassador said 1
even before shakic~ hands, "Take off your coate. You know ehat the govern-
ment has ordered 'no coats.' in order Co save on energy."
COPYRIGHT: Asahi Evening News 1979
CSO: 4120
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ECONOMIC
'MAINICHI' EDITORIAL CALLS FOR REVICW OF AVIATION POLICY
Tokyn MAINICHI UAILY NEWS in ~nglieh 16 May 79 p 2 OW
[Editorial: "Aviaeion Policy"]
[TexC] The Japan~se government must~take a new look
at its aviation pollcy~ because oi emerging in-
ternational and domestic chAnges. The international.
- avlation industry as a whole has experienced r~pid
development. At the end of March, Pan American
World Air~.~ays, the world's leading airline company,
wlthdrew from the International Air. Transport
Association (IATA).
The ~vitndratival of Pan Am unfavorably affected '
the function of ~ IATA~ which sa~v the secession of
Northwest Orient Airlines five years ago. Pan A~n's
withdra~val ~vas in line with the thoroughgoing
liberalization policy of the avlation industry
promoted by President Jimmy Carter's administra-
tion:
In the United States, the IATA agreement on
passenger fares has Iost its substance. In February,
Northwest submitted a proposal to the Japanese
Transport :1Iinistry calling for the introduction of
passenger fares 35 percent lower than the current
economy fares on the Seattle-Tokyo route.
The pcoposal was based on the idea fares must be
set in proportion to distance. The idea contradicts
IATA's concept that equal fare rates must be applied
to identical destinations. The Transport Ministry
turned do~r�n ti'orth~vest's request, pointing out Japan
Air Lines has no right to extend its services to Seattle.
North~a~est then made a proposal to the govern-
ment of the�Republic of horea, seeking appraval of a
near-30 percent discount on the Seattle-Seoul route.
Japan Air Lines decided.to reduce its round-trip
fares to the United States and Australia~ by 15 per-
cent~ and to Europe 10 percent~ eEfectlve in February~
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i V~\ N~ ~~,UY~~y VuV U\~Ul
to adjust diff~rences ln the fares on varlous routes
resultln~ from r~pfd changes in foreign exchange _
rates. As [ar tis rout~s to th~ United St~tea are con-
- cerned, nu reductlon hus yet been� implemented
b~caus~ tl~r Clvll Avlatton Board (Ct1B) nf the Untted
States is still examinin~ the propos~l.
In avlation, the United States has been qn the
oftensIve and .1~pan has been on the defensive. The
American airline companies can take aggressive
attitudes because they enjoy enormous rights, both
domestically and internattonally. In the aviatton
industry~ strong rigl~ts mean strong competittve
abtlity.
Reflectin~ such ~ trend, there exists considerable
inequallty in the Japanese�Amerlcan aviatton
agreement, ~~~hich ~ve,believe must be corrected. At
,present, ho~vever, there is llttle possibility ot such
correction.
~ What we want from the Transport Minlstry and
Japan Air Lines is a realistic reaction to American
demands. The United States offered recognition for
Japan Air Lines' extension of services to Seattle in
return for Japan's reco~nition of the 35 percent cut in
the Tokyo-Seattle fare. Japan turned that down~
saying inequalities in the treaty must be corrected
first of all. Did the rejection benefit passengers?
Japan Air Lines no~v ~v~nts to enjoy "fill-up
rights" on the Narita-Kagoshima-Hong Kong route,
so it caii Ioad or unload passengers between Narita
and Kagoshima. The airline company says this will
help it economize on fuel and offer more convenient
services to passengers,The reasoning is persuasive.
If Japan Air Lines pursues the reasoning, it will
ha~~e to face similar problems on the Narita-
Nagasaki-Shanghai, and Narita-Kumamoto-Seoul
r4utes. The company wants the right to solidify its
managerial basis in order to . survive tierce in-
ternational competition. The company apparently
realizes the domestic market is lucrative.
' Under current regulations, Japan Air Lines
cannot load or unload passengers betw�een the above
points, because its services are limited to domestic `
tcrunk lines and international routes.
Judging from recent developments, we believe
another good look must be taken at the aviation
policy. In examining new policy; we want 4o say
F,oliticians must not interfere in such processes and
the double-tracking system must be actively in-
�troduced, to avoid possible monopolies' on certain
routes. Aviation policy must be examined from a
long-range viewpoint. ~
COPYRIGHT: Mainichi Daily News, 1979
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CCONOMIC
MITI DECIDES TO TRIPLE GOVERNMENT OIL STOCKPILE
Tokyo ASAHI EVENING NEWS in English 26 May 79 p 1
[Text] The MinisCry of InCernational Trad~ and Induatry has decided to
increase the target for t~e Government's oil sCockpile from the present
10 million kiloliters by Ct.: end of fiscal 1982 Co 30 million kilolitera
by the end of fiscal 1985.
The International Energy Agency and many experCs predict thaC there will
be a global oil shortage earlier than expected, and the MITI wanta to
raise the nation's oil reserves up to the levels of other Western coun-
tries. It intends to increase .*.~a SCaCe reserve by buying additional oil
during the low-demand season rso that the crude oil market will not be
affeceed.
The Government is guiding the nat~;,n's oil refineries to secure by the
end of fiscal 1979 a stockpile equivalent to a 90 days' supply, but the
reduction in supply after the Iranian revolution has made this goal diffi-
cult to accomplish. The current reserve in the private secCor is estimated
to meet 85 or 86 days of supply.
The original target for the State reserve was to secure by the end of
fiscal 1982 10 million kiloliCers, enough to meet the needs for about
10 days, on top of the stack in the private sector. The State reserve is
now put at 5,240,000 kiloliters or 7.2 days' supply, and 2,500,000 kilo- -
liters is planned to be added Co it in this fiscal. year.
However, compared with other Western countries, Japan's total oil reserves
are very small. As of Mar. 1 last year, Switzerland had a reserve equiva-
lent to 140 days of supply, Decunark 133 days, Portugal 122 days, France 103
days, West Germany 101 days and Britain 88 days.
Some quarters within the domestic oil industry worry that the Organization
of Petroleum Exporting Couiitries (OPEC) and ma~or international oil dis-
tributors may oppose an increase in the national oil reserves by a big
consuming country like Japan and that such a move by Japan may push up
prices on the spot market. But the MITI says the additional buying will
be done responsibly.
COPYRICHT: Asahi Evening News 1979
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~CONOMIC
BRIEFS
MITI POLICY--The two paramount concerns of Ministry of International Trade
r~nd Industry policy for JFY 1980 are energy and international trade fric-
Cion. Against this background, MITI policy aims include: 1. establishing
comprehensive bilateral econom3c cooperation plans, 2. development of
software coupling data and communications, 3. new legislation for modern-
izing the distribution system, 4. structural improvemenC of the oil refin-
ing industry and revision of the Petroleum Industry Act, 5. eaCablishing
- an organizaCion to promote acquiring overseas mining concessions for
coal, uranium, iron ore, etc. 6. strengthening medium and smaller firms
in Che sofCware areas of collecting information and technological power.
[Tokyo NIHON KOGYO SHIMBUN in .iapanese 22 May 79 p 1]
,
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SCILNCC AND 7'GCHNOLOGY
JAPAN WILL PUSH FOR JOINT INT~RNATIONAL TECHNOLOGY VEN'PURES
Tokyo THE DAILY YOMIURI in English 21 May 79 p 1
~Text~ Japan will push for ~oint international Cechnological ventures in
such areas as electronic computers and aircrafC, Masumi Esaki, international
trade and industry minister, has announced.
Touching on the reported capital tie-up between Toyo Kogyo and Ford Motor,
the minister said that an international division of production should not
be restricted to the automobile industry but be encouraged in other fields.
The ministry's new policy, as outlined by Esaki, marked a ma,jor turnaround
from iCs erstwhile stance of helping 1oca1 enterprises build up the
inCernational competitive edge.
The departure from the old policy was prompCed in parC by a growing tendency
among foreign industrial giants to join hands, according to observers.
In case of Che auto industry, the American Big Three are already in tie-up
with Japanese makers.
Toyo Kogyo is producing small trucks for Ford; Isuzu Motor is making Crucks
and passenger cars for General Motors and Mitsubishi Motor, passenger cars
for Chrysler.
With the economic growth slowing down worldwide, it would be too risky for
individual firms to go it alone in either big-scale investment or development
of new technologies and sales markets, according to experts.
The MITI believes that the two biggest carmakers here, Toyoto and Nissan,
also back the idea of international. cooperation or production sharing.
In 1971 when capital inv~stment was liberalized for up to 50 percent, the
MITI played a role in reorganizing computer makers into two groups.
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One group was made up of ~u~iCau Limited, HiCachi and MiCsubiahi L1ecCric
Corporation, and the other of Nippon Electric CompAny and Toshiba Corporation.
The two groups are vying againsC each other Co develop inrernationally
more competiCive technology.
BuC the ministr.y is now obviously having second ChoughCa about Japan's
technological research set-up more or less isolated fr~m foreign conracts.
The MITI policy is shifring in favor of international cooperation as a
more effective meana of achieving the desired results by scrapping the old
"go it alone" idea.
Eventually, the ministry reportedly believes it would be necessary to merge
the two computer maker groups into one as the sole Japanese force to wnrk
with prospective overseas partners.
Fujitsu, meanwhile, has entered into an agreement with a West German firm `
tor joint technology development.
Such international cooperation should be positively encouraged, Che MITI
says.
In the production of aircraft, tie-ups with foreign makers would be highly
desirable as Japan lags behind in this field.
The ministry earlier let it be known thaC it wanted Japanese makers to
make rapid strides in the field with their own efforts but now believes
that massive investments to fostet the plane industry wouldn't be a paying
proposition. -
And iP the Japanese successfully produced highly competitive aircraft, the
makers would have to sunnount another hurdle--finding good markeCs.
Ii? case of an international joint ventL?re, the risk of large investment
will be reduced, the job of tapping a new market also made easier at the
same time, according to ministry sources.
Investigation On
Chicago (AP)--A Federal Grand Jury investigation could lead to indictments
of top American executives of Japan's largest consumer electronic companies,
the Chicago Tribune says in a copyright story in Sunday editions.
The newspaper said the investigation by the US attorney's organized crime .
and rackeCeering unit in New York centers on alleged corporate payoffs to
an International Brotherhood of Teamsters local in exchange for freedom
from hijacking and other troubles.
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.
. ~dt~ U~~ICtAL U5~ ONLY
'1'hi: rcpdrt g~id the inve~eig~tinn ig fdcu~in~ ~t rh~ Cnrpnr~t~ lpvpi nn
anle~ arn~~ ot tour Jap~n~~e compgni~e~~5nny Cnrpnr~ttan nC Americg,
M~CsughiCB ~lectrtc CnrpnraCi~on nf Americg (Pan~~~ic)~ Nit~chi S~1~~
Cnrp, and Toghiba Am~rica Inc.
Th~ union i~ quegCton~ g~id the newgp~p~r~ i~ Team~C~r~ I.dc~l 805~ which
r~pr~eb~nt~ gbdue 2,~OU Cruek driverg ~nd war~hougpmpn in Npa York City.
~he Trtbune gaid dee~ile of Ch~ invpgtig~Cinn, vhirh Wag initiaeed ae ehh
requegt of the US L~bor nppartm~nC~ rov~rg name~~ a~legatione and specific
paym~ntg from 1964 through the pr~sene. -
The newapaper gaid iC had obtgined from Wgghiugenn gourceg g copy of g
35-page confid~ntial report prepared by eh~ Labox Manag~m~nt S~rvic~e
AdminisCrgCiott.
The repore dealg primartly with ev~ntig in Che 1970s and detail8 roughly
$300,000 in paymenCg during Chie period of both cagh and aacpeneive elec-
Cronics equipment.
Under ~h~ Taft-Hartly Act and the Organix~d Crime Control Act of 1970, it
ia illegal for union officials to take bribes aad also illegal for
corporatione to offer them.
The Tribune reported that a regulatory official said both union and
corporate officials are targets for indictments.
COPYRICNT: The Daily Yomiuri, 1979
CSO: 4120
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~'dR U1~1~ICLAL U5L Ot~iLY
SCILNCL ANll TCC1fNOLOCY
UK-JAPAN JOINT J~~ ENGIN~ D~V~IAPM~NT
'Cokyn TN~ UAILY YOMIUtti in Engliah 23 May 79 ~
CT~xt~ Mie~ubishi H~gvy induetri~e iMHi), i~hikaura~ia~a Narima Heavy
Indugtripe (tNt) and ltg~ggki H~gvy Industrieg (KNI) have decided to Cie
up With itolls-itoyce, c~f Brieain, fnr the development of an aircraft j~e
engine, a governmenC sources Tueeday disclosed.
T'h~ ehre~ companies will eign a technological tie-up agreement ~?ith the
British company in or after June.
The International Trade and Industry Ministry (MITI), i+hich favore
international specializatior} plane Co back up this project.
Th~ three Japan~se companiea and Rolls-~toyce ~rill join haada in research
fnr aad development of an aircraft jet engine ~rith a thrust of nine tons.
There is a atrong probability that the eugine thus developed arill be uaed
in the YXX, a third-generation ~etliner to be developed by Japan's aircraft
industry.
Rolls-Royce arouad August last year proposed Co Japan's heavy machiaery
induetry ~oint production of a jet engine to be developed by the Britiah
campany.
The Japanese side ~+ithheld an immediate ans~ter because at that time, MITI'~
Industrial Science and Technology Agency had a plan to develop a jet engine
by 1980. MITI feared duplication of investment.
It Was agreed later to combine the Cechn~logy of the ageacy and the
technology of Rolls-Royce, and develop, through joint endeavors, a jet
engin~ with a thrust of nine tons.
A problem remains for the Japanese side: hov to raise ~SO billion, vhich
is the Japanese share of the cost for reaearch and development.
OOPYRIGNT: The Daily Yomiuri, 1979
CSO: 4120
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~Utt O~~ICIAi, U5~ ONi.Y
5CI~NC~ A~!iU ~~CNNOLf~Y
MI'TSUI, KAWAT~TSU b~V~LOP Et~VOLUTIONAEtY COK~ PitOCESS
Tokyn MAINICIiI bAiLY NEWS in ~nglieh 25 May 7g p S
~Text~ An epoch-making plant proceag deaigned to recover and remove
anmonium in coke oven gag has been ~ointly developed by ehe Mitgui
Construction Co. and the KawaCetsu Chemical Industry Co.s iC Was aqnounced
recently.
Called the KAMIAM syeCem, the neWly developed process will not only reduce
costs involved buC contribute greatly to prevenCing industrial pollution.
The ~oke oven gas liquor produced in the procese of manufacturing coke
containe ammonium, hydrogea sulfide, cyanide, carbonic acid gas, in
addition to oily subsCances and phenol. Ordinarily the COG liquor is
disposed by the activated sludge disposal system after removing ammoaium,
hydrogen aulfide, cyanide and carbonic acid gas by steam stripping.
Thc KAMIpM system developed by the two companies, a kind of ateam stripping
process, has the follor~ing ouCstanding features:
1. Although fixed ammoaium in the gae liquor cannot be removed by the
existing methods, the KAMIAM system is capable of resolving and removing
it by using lime.
2. Since quicklime or calcium hydroxide is used instead of expensive
caustic soda to resolve fixed ammonium, the runaing cost can be reduced
greatly. The cost of alkaline agent used for fixed ammonium per ton is
26,000 yen in the case of calcium hydroxide (s~ack lime) and 118,000 yen
in the case of caustic soda.
3. Since the new process does not cause clogging by the uae of lime, it
can be operated continuously for long hours.
4. The still requires cleanf~g generalYy once a year ~+hereas ~rith the
ordinary process it requires cleaning once every two months. Since the
new cleaning method does not require dismantling of the column, operations
can be resumed in about eight hours.
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5. Wieh Che gddpeinn nf the li�e eray, ehe amoune nf ge~am c~n b~ r~duC~d
gnd eh~ di,~mee~r df ehe column ig about nne half Che nrdinary one regulting
in a cost-down.
Th~ new ~ygtem w~g developed at a eo~t of about 200 million yen. Ttie h[itgui
CongtrucCinn Cd. plgng Co aC~g~ full-fledg~d gglee gcCiviCie~ boCh aC home
and abroad in aneicipaCion nf stricter regulationa againgt aamontum. A
KAMIAM Byetem plant, capable of disposing of 40 to 50 tona, ia expected Co
" be pric~d ~t 800 million yen. The two companiea have already filed pgCene
applicationg wieh six Wesrern countrips.
A Mitaui spokeaman also reported that at least one KAMIAM p1anC will go
into operaeion ae home within Che year.
COPYRIGHT: Mainichi Daily News, 1979 .
CSO: 4120
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~Ott O~FICTAL USL ONLY
SCI~NC~ AND T~CHNOLOGY
Ntt~A URGES ENERGY R~S~AItCli FUNUING
Tokyo MAINICHI DAILY NEWS in ~nglish 23 May 79 p 5
~Text~ The Natural Reaources and ~nergy Agency hae decided to seek
legislaCion of new Caxeg eo finance dev~elopmenC of new sourcea of energy,
officials said Monday.
The agency will press for legislation of ineasurea to promote developmenC
of new energy sources (including coal liquefaction), inatitute new taxea
and set up a special fund to pool money Co finance alternate energy
deveZopment efforts.
The agency, which comes under the Ministry of International Trade and
Industry (MITI), will try to talk the Finance Ministry and other government
~ifice~ as well as the ruling Liberal-Democratic Party into agreeing to
include the measures in the fiscal 1980 government policy, the officials
~aid.
The move has been promoted by prospects far future oil supplies being
clouded by uncertainties in the Mideast situation and moves of the
Organization of Petr~leum Exporting Countries,
Warnings by the 20-nation International Energy Agency and the U.S. Central
Intelligence Agency that an oil crisis would come in 1985 or earlier also
have added to a general feeling of urgency. The officials pointed out the
need to speed development of coal liquefaction technology and geothermal,
solar and other new energy sources to enaure the natioa's economic security.
The agency will also seek fiscal and monetary help aad tax credits for the
electric power, steel, petrochemical and other major oil-consuming industries -
to switch to other sources of energy.
The planned taxes of abo�C 1.5 percent on electricity, gas aad petroleum
products will create funds of about 230 billion yen each year, according to
present estimates.
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t3ecau~e key aub~ecrg fnr digcusgion ~r Ch~ economi.a gummie in Tokya nexe
month are exp~cred to include the energy problem, MITI ie working c~uC an
E~nergy aCrategy Co ehow g poaitive ~tanae on ehe part of Japan~ ehe
world's gecond large~r imporCer of crudc~ oil.
COI'YRIGHT: Mainichi llaily News, 1979
CSO: 4120
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~'OEt d~~ICIAL U5C dNi,Y
SCI~NC~ ANU TCCHNOLUCY
BRIEFS
~AINBOW PROJECT--A government-related gource reporCs that Che Agency of
Industrial Science and Technology inCende Co atart a new "big pro~ect"
energy program on biomass conversion systema. The pro~ecC, a parallel Co
Che Sunshine and Moonlight pro3ecCs, is expected Co require funding of
50 billion yen over 10 years. A budget of 2.5 billion yen will be sought
for JFY 1980, the f irst year of the program. [Tokyo MIHON KOGYO SHIMBUN
in Japanese 25 May 79 p 1]
MITI SPAC~ COI~tITT~~--The Ministry of InCernational Trade and Induatry
(MITI) has declared its intenC to embark on fostering a satellite indus-
try and to tackle research on launch of a resources survey saCellite.
Judging Chat launching satellites is moving from the research to the
practical stage, MITI is setting up a"Space Development Research Com-
mitCee" and intends to create a governmental-private satellite develop-
ment organization including the Science and Technology Agency, the Minis-
try of Posts and Telecommunications, and so forth. This is the first
major move by MITI in the space development field. [Tokyo NIKKAN KOGYO
SHIMBUN in Japanese 18 May 79 p 1]
HTCR PLANNING--The Japan Atomic Energy Research Inatitute has placed an
order with Fu3i Electric, Hitachi Ltd, Japan Atomic Power Co, and Mitsu-
bishi Heavy Industries for the comprehensive systems design for an HTCR
featuring production of 1,000�C helium at 40 atmospheres pressure. Pre-
paration of detailed designs for the reactor is scheduled to start in JFY
1980 and run about 3 years and construction of the reactor is planned to
start in mid-JFY 1983. [Tokyo NIICKAN KOGYO SHIMBUN in Japanese 29 May 79
p 6]
CENTRIFUGE ENRICHMENT--The first 1,000 uranium enrichment centrifuges
have been installed at the PNC's Nigyo-toge pilot plant. If all goes
smoothly, test operation will start in July and regular operation in
August. Installation of the improved OP-1B and OP-2 centrifuges (3,000
centrifuges each) is scheduled for next year and year after next.
[Tokyo GENSHIRYOKU SANGYO SHII~UN in Japanese 10 May 79 p 3~
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CUAL LI(~U~FACTION pLANT--'The Ag~ncy uf Indu~Crigl Snipnc~ & T~chnningy,
MI'~I, has ~sked Sumitomo MeCal Indugtries gnd Sumitmm~ Cngl Mining Cn
r~vi~e plgne for g 40 ton-day pilot plant for solvenr cngl liquef~cCion
Co be completed in J~'Y 1985 inCo plan~ for ~ 250 ton/day piloC plant Co
be completed in JF'Y 1984. xhe two firme have ~uat ~tarted a construction
nf a 1 eon/day plgnr gnd have miegivings abouC attempting such a quenCum
~ump but aee some posgible advanCages. They are gtarting a feasibility
study fdr a plant snmewhere in size between 40 and 250 eon/dgy capaniCy.
The gnvernment presaure is viewed ge a reeulr of thp woreened oil gitua-
tion and a desire to promeCe technology for Che Japan-U.S. liquefaction
prn~ece thaC was gn outgrowth of Che Ohira-Carter meetinga. (Tokyo NIKKAN
KOGYO 5HIMBUN in Japaneae 29 May 79 p 1~
SHIPBUILDING COMPUTERYZATION--Hitachi 5hipbuilding & Engineering has com-
puterized procesging of shell expansion for the bow and etern of ahips~
reducing time required by half. This labor saving is aignificant for
medium and small shipa, and Hitachi inCende to aell the system overaeas
via Hitachi Shipbuilding Information Syatem. [Tokyo NIKKAN KOGYO SHIMBUN
in Japanese 19 May 79 p 1]
AUTOMATED SHEARING LINE--Koga Kozai, ~oined by Aizawa Tekkosho, has devel-
oped a fully automated numerical-control shearing line said to have an
operating efficiency five-fold thaC of convential linea. The line will go
into operation Chis monCh. [Tokyo DENPA SHIMBUN in Japanese 23 May 79
p lOj
TI'CANIUM-CLAD ALUMINIJM--Kobe Steel has developed a low-cost, high-quality
tit~nium clad aluminum plate. The material, clad on one or both sides by
vacuum soldering using an SiA1 solder, can be used for electrodes, chemical
tanks, pipes, and other applications. [Tokyo NIKKAN KOGYO SHIMBUN in
Japanese 23 May 79 p 6j
IMAGE RECORDING MATERIAL--Fuji Photo Film has developed a new image record-
ing material structurally composed of a protective layer, a metal thin
film of Sn plus SnS formed by vacuum deposition, and an undercoating of
polyolefin on the base film. This laser direct recording film is a heaC-
mode type, and hopes are high for computer and facsimile applications.
[Tokyo NIKKAN KOGYO SHIMBUN in Japanese 16 May 79 p 5~
PLASTIC MAGNET--A Tohoku University research group and Mitsubishi Steel
have ~ointly developed the world's first plastic magnet usable at 180�C
by using a boron (B-t) polymer as the bond material. [Tokyo NIKKAN
KOGYO SHIMBUN in Japanese 18 May 79 p 5]
CSO: 4105 END
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