JPRS ID: 8710 JAPAN REPORT

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• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000100100019-9
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• Document Page Count: 36
• Document Creation Date: November 1, 2016
• Sequence Number: 19
• Content Type: REPORTS

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.,r'~iS L/8710
15 October 1979 .
, Ja an Re ort ~
p p
CFOU4 30/79)
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JPR5 L/8710 '
15 October 1979
JAPAN REPORT
(FOUO 30/79) ,
CONTENTS PAGE
POLITICAL AND SOCIOLOGICAL
Fall Election: Fierce Figl~t Among Conservative Candidates _
~-Predicted
- lYuji Katsumata; SHUKAN ASAHI, 7 Sep 79) 1
ECONOMIC
NTT Becomes Target of U.S.-Japan Electronic Technology War
(Masaomi Ohmae; CHUO KORON, Jul 79) 9
SCIENCE AND TECHNOLOGY
- Super Conductor Power Generation, Transmission Project Planned
(NIHON KOGYO SHIMBUN, 23 Jun 79) 28
Micro-Ceramic Ball Manufacturing Technology Developed
(NIHON KOGYO SHIMF3UN, 26 rsay 79) 30
Briefs
Methacoal by Mitsui , 3z
- a - [III - ASIA - 1.11 FOUO]
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POLITICAL AND SOCIOLOGICAL j
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FALL ELECTION: FIERCE FIGHT AMONG CONSERVATIVE CANDIDATES PREDICTED
i
Tokyo SHUKAN ASAHI in Japanese 7 Sep 79 pp 16-20 ' ~
_ ~
[Article by Yu~i Katsumata, ASAHI SHIMBUNSHA, Political Gffice] j
i
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[Text] Prime Minister Ohira's administration is going all\out to prepare ;
fox the general election on 7 October. The general public may not under- ~
stand the reason for declaring the dissolution and general election, but ~
Ohira and his faction have a clear purpose, which is to increase its strength ;
so as to achieve a decisive victory again in the presidential election of , ~
the Liberal Democratic Party [LDP] next year. Understandalily, the other (
- factions will wage an all-out struggle to retain their strength. Indica- ~ ~
tions point to a low level election with in-fighting within the conserva- ~
. tive camp. i
1
"Presidential election based on factionalism has become a big issue. The j
number of new candidates desirous of running under the Ohira faction banner I
is so great that all of them cannot be accepted. A weeding-out program i
has been established and candidates are being carefully selected, but...",
so said Yoshitake Sasaki, a leading member of the Ohira faction and LDP's
first deputy secretary general. From his breast pocket, he took out a
memo pad that.contained the names of the 21 "key candidates" being con-
sidered as new candidates. It included their addresses and election cam-
paign office telephone numbers. Small cryptic notes which could not be
deciphered were scribbled extensively throughout the pad.
The weeding-out program first considers, as the general political practice,
wh~ether a clash exists in an electoral district between an incumbent seeking
- reelection and a former Diet member who is trying to make a comeback, and
secondly, whether the aspirant will support Ohira's reelection in the
party's presidential election next year. A victim of this careful screening
who was d~nied endorsement by the Ohira faction is Hakuo Yanagizawa from ;
_ the Sh~zuoka prefectural third electoral district. Yanagizawa was a
former official of the Finance MinisCry and later served as the private
secretary of Chief Cabinet Secretary Rokusuke Tanaka, who had encouraged
his candidacy, thereby leading everyone to believe that Yanagizawa
belonged to the Ohira faction. Yanagizawa himself assumed this. However,
hailing from tha same electoral district are Atsuro Adachi of the Tanaka
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faction and Kazuo Shioya of the Miki faction. Both men, from different
factions, are pro-Ohira. "Yanagizawa cannot be endorsed by the Ohira
faction because the two incumbents would be in a pinch," defended Sasaki.
Former Prime Minister Kakuei Tanaka, Prime Minister Ohira's ally, once
remarked: "In gaining one ally, if two or three enemies are created in
the sam.e electoral district it is a loss." ,
Tanaka is very sensitive about protecting new candidates of his faction.
_ The su~~?e belief is held by Qhira, who is hoping for a stable hold within
the party.
On the other hand, the case of Jiro Kawasaki of the Mie Prefecture's '
first electoral district is considered unusual. Because his father ~
Hideji, who died during his incumbency, was a member of the Nakasone :
faction, he too was considered to be with Nakasonc. '"his past spring,
when Hideji's first memorial service was hpld at the New Otani Hotel in
Tc~kyo, his presence with the Nakasone faction led others to remarlt that _
the occasion was a full-strength attendance of the Nakasone faction. ,
tlowever, the Sasaki memo notes he is as an Ohira faction member. Sasaki
states: There is a Dietman who serves as his father's successor, and ;
he is slated to move into our camp." In his home district, Kenji Maide, ;
who for 22 years served loyally as the elder Kawasaki's private secretary, ~
managing the affairs of his constituency, remarked: "The move to ~oin `
the Ohira faction is not final yet." He described the latest developments ~
in the following manner: !
- "Dietman Hajime Tamura of the Tanaka faction from the neighboring Mie ;
Prefecture second electoral district has bQen continuously giving b,is full ~
- support. At first, the Nakasone faction made the overture by offering ;
to look after our needs, but Tamura intervened and thwarted the attempt. ~
In the final analysis, it was decided that we remain factionless until !
the election and then to reconsider when elected. To date, we have not
received any financial support from Zenko Suzulti, one of the top offi- ~
- cials of the Ohira faction, and Tamura has not given instruction that we :
should join the Ohira faction." ~
The Ohira faction does not need to deal directly with Kawasaki, for it ~
appears that through the already firmly established relationship existing
with Tamura, the promising young man is already in their clutch. In any . ~
election, the faction of the incumbent president expands its inf luence. ,
He controls the party's executive section, which gives official endorse- :
ment as LDP member and has large political.funds. The Miki and Fukuda ,
cabin~ts, that followed Tanaka's pay-off scandal, could not establish '
their own party's executive group; but, upon gaining the presidency,
Prime Minister Ohira forcefully overcame the opposition of other =actions
- to name Kuniyoshi Saito as his secretary-general and his confidant,
Masayoshi Ito, as chairman of the finance committee which controls the
party's funds. All this happened after Tanaka's regime.
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- Tanaka Faction Is Capitalizing on Ohira Faction's Successes
The following can be interpreted as bein~ said out of envy or ~ealousy. ~
In April of this year, immediately after the consolidated prefectural ~
elections, an LDP Diet legislator is said to have remarlced: "The '
party headquarters collected several billion yen for use in the p,ref~ctural ;
elections, yet, half of the sum was stashed away. The general election '
.will b2 held soon." ~
i
Although the election date of 7 October is about to be confirmed, leaders ,
of the Ohira faction are saying, jwith tongue in cheekJ, "Without election ;
funds, how can we dissolve the Diet?" Prime Minister Ohira's predecessor, ~
Takeo Fukuda, called for dissolution and the election, but he could not '
accomplish his aim ~of being elected party president.] One reason for ~
his failure is attributable to the damaging reference to the depletion of i
party funds made by the then Secretary-General Ohira, who was against ~
dissolution at that time. Ohira, who won the presidency, insisted on
forming his own executive group because he was fully aware of the inner i
workings of the party.
Political commentator Kiyoshi Ii~ima has said: "The Ohira faction's '
Kochi Club is comparable to a stock company while the rest of the factions ~
are single proprietorship shops. Since former Prime Minister Hayato I
Ikeda, personalities have been recruited from the financial world and the ~
mainstream of the Finance Ministry and, even if the head of the state is i
not Ohira, the organization is designed to draw personalities and money. ~
This arrangement may be weak in a political turmoil, but once the gears' II
of the organization start moving, power emanates." '
Closely allied to the Ohira faction, which recruited personalities from ,
the major companies of the financial world since the days of ex-Prime ~
Minister Hayato Ikeda, is the Suehiro Club, led by President Yoshihiro ,
Inayama of the New Japan Steel Corporation. On 18 August of this year
the club mcmb~rs gathered at Karuizawa where Prime Minister Ohira was
resting. Members golfed at the Dai Asama Country Club, which is owned
by the Mitsui conglomerate. At night, non-golfers Mrs Mitsuie Ikeda, widow
of ex-Frime Minister Hayato Ikeda, Shigesaburo Maeo, who is supposedly at
odds with the prime minister and who was formerly presiden.t of the Kochi
Club, and others dined together. Naturally, joining them were such
personalities from the financial world as: Hideo Edo, chairman of the
Board of Mitsui Real Estate Co., Ltd.; Rokuro Ishikawa, president of the
Kajima Construction Co., Ltd.; and Masaichi Nishikawa, consultant of
Nissho Iwai Co., Ltd., and others.
The fact that new candidates are seeking membership in the Ohira faction
is probably because the Tanaka faction has lost the power it once had.
An increasing number of new candidates depend on the Tanaka clan for
campaign activities but publicly identify themselves with the Ohira
faction. Linkage with the LDP president's faction has its advantages,
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and the Ohira political regime might possibly be a long Cerm one. In
proclaiming a new brand of politics," the "Tanaka01 faction is not
quite appropos. However, ths Tanaka faction has the best know-how to
' run election campaigns and therefore should not be evaded. This is how _
the new candidates view the situation.
According to Ohira and Tanaka factions, Sadatoshi Kosato of the Kagoshima
- prefectural second electoral district, Mc~toji I~ondo of the Niigata prefec-
tural first electoral district and Kiyoshi Ozawa of the Tokyo seventh
electoral district fall into this category. The matter of their affilia-
tion has already been discussed by the leaders of both factions and they
are counted on as "candidates from the ~oint Ohira-Tanaka factions" or
"waist-up Ohira factxon" and "waist-down Tanaka faction."
A typical case is Kosuke Hori, son of the late Shigeru Hori, who was
formerly the chairman of the House of Representatives. Kosuke Hori is
being groomed to be his father's successor from the Saga prefectural dis-
trict. Supporting Kosuke in his election campaign is his father's close
friend, Shin Kanemaru of the Tanaka faction, who singlehandedly took
over Kosuke's fund-raising party and sold 3,000 tickets. On the 22d,
Kanemaru went with Welfare Minister Ryutaro Hashimoto of the Tanaka
faction to Saga Prefecture and at the rally said: "If I cannot get
~ Kosuke elected, then I'd be ashamed to visit Hori's grave. I have my
campaigning to do in Yamanashi Prefecture, but I'll be in Saga for 10
days." From the Saga prefectural district, incumbent Kenichiro Otsubo ~
of the Ol~ira faction will also be campaigning for reelection; but, since
the constituencies do not conflict, an understanding was easily reached _
between th~ Ohira and Tanaka factions that the Ohira faction will furnish
young Hori's campaign funds.
A similar case is that of Motoji Kondo whose office issued this statement:
"An understanding has been reached between Kakuei Tanaka and Yrime
Minister Ohira that Kondo will be identified with the Ohira faction but
will be cared for by the Tanaka faction. According to Kondo's office,
.leaders of the Tanaka faction will pazticipate in the general rally on
the 31st and members of the Kochi Club have expressed their availability
to assist if necessary." !
Thus, there is no conflict. There is hardly any troub le between the
Ohira and Tanaka factions concerning new candidates. With the Ohira
faction furnishing "hardware," such as funds and campaign preparations,
and the Tanaka faction providing "software" by way of overseeing the ~
campaign techniques, the e.lection machinery gears are in mesh and the ~
strength of rhe main force is progressing steadily.
Kawamoto Faction Accepts All Comers in Order to Expand
By contrast, the Fukuda faction is trying to maintain the status quo while
the Nakasone faction is on the defensive.
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Commentator Kiyoshi Iijima states: The Nakasone faction is especially ;
vulnerable to losses. One or two new candidates shuw promise and two ' ;
former members of the Diet appear hopeful of m~king a comeb.ack but, on ~
the other hand, eight or nri;ne incumbents appear vulnerable. In the past ;
tw~ general ~lections, the Nakasone faction increased their nuaiber of t
new Dietmen and gained momentum, b ut in this comi~g election, a slump ~
is anticipated. I
~ ;
Last month, Nakasone himself returned to his constituency, the Gumma ~
Prefecture's third electoral di:ctrict, for a long stay. This is con- ~
sidered unusual �or a leader of a faction. It is said that he even attended ~
small group meetings to devote himself to election activities. ~
"Although it appears there is no change in his attitude of aspiring to )
become the head of the next government, it seems that he has lost some ~
of his .fervor." i
Among the new candidates, Kawasaki, who belonged to the Nakasone faction, ,
has joined the Ohira faction, and problems have been encountered in '
selecting a successor to former Dietman Taro Otake of the Nakasone faction
from the Niigata Prefecture's four�th electoral district. The person ,
selected by the booster club has refused to enter the race and his replace-
ment, Katsuhiko Shirakawa, has opted to join the Ohira faction. The
Nakasone faction cannot recover l~st ground.
In the midst of the established hig factions which are strengthening ;
their positions, Toshio Kawamoto (chairman of the party's Policy Research
Committee) of the Miki faction and Ichiro Nakagawa (former ~cf~inister of
agriculture and forestry), who organized the Liberal Reform Associates
Club are conspicuous in their activities to establish new power groups.
Kawamoto holds one of the three key party posts and, as successor to the
Miki faction, shows definite intention to take over after the Ohira regime. '
Said he determinedly: "As a holder of one of the party's key posts, I
will go whereever the party directs. As for the presidential election
- next year, I cannot comment until the election rules are revised. We of
the M3ki fact':on will go all out in seeking the elec'tion of the incumbents,
the four formi,fr legislators making a comeback and the 10 new candidates.
As usual, he is full of enthusiasm and does not speculate. Friends around
him report that th~re.:-is~~.~re than meets the eye. Kyoichi Noro, who
has been flatly st :':;ing :*_liat Kawamoto will be the next party president,
comments: "Kawamoto, himself, has clearly shown his interest in the
positions of party president and prime minister. He shows tremendous
' interest in the subject of the ~residential election and acts upon the
mat*er immediately. As for the coming general election, he is already
- gambling on the numUer of gains by the Kawamoto faction."
The strategy of winning 40 seats between the Miki and Kawamoto factions is
progressing smoothly and favors have been done for the new candidates,
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ahead of the incumbents. Actually, he has been in charge of Miki faction
funds, but outwardly he has bypassed Miki and leaders of the same faction.
According to a i~iiki faction Dietman, since serving as chairman of the
party's Policy Research Committee, Kawamoto's name has surfaced as the
fund dispenser.
Among the new candidates claimed by Kawamoto faction as belonging to
his faction are some being wooed by the Ohira and Fukuda factions. These .
new candidates are noncommittal about their factional affiliations and ~
place priority on organizing their awn bo~ster clubs. Candidate Iwao
Kudo, former mayor of Morioka city from the Iwate prefectural first
electoral district, has linked himself with several factions. Noro has
remarked that any new candidate is welcomed to join their forces and
efforts are being exerted to elect those who favor the Kawamoto faction. ;
In the presidential election held last year, second to Kawamoto's con- ~
stituency of Hyogo Prefecture was Nagasaki Prefecture, and Kawamoto has
entered new ~andidates in the first and second electoral districts. In
the second district, Kuro P4atsuda of the Kawamoto faction caused an
uproar by almost defeating two incumbent cabinet members, Ji.nkichi
Shirahama, minister of posts and telecommunications, and Iwazo Kaneko,
director of the science and technology agency.
Kawamoto's movements indicate his involvement with the presidential ~
election for, along with supporting candidates of his faction, he has
been attending alumni gatherings throughout Japan of his alma mater, Nippon
University, as well as Nippon University alumni groups which are being
organized. He has already attended alumni meetings in Tokyo, Osaka,
Fukuoka and Fukustiima. Because his force is weak in the rural areas, it
appears that his strategy is to make up for the low party membership of
the Miki faction through the organization of Nippon University.gracluates.
It is also rumored that a powerful membpr of the fi~ancial world, active
since the Ikeda regime, is making overtures to ally Ohira with Kawamoto,
and Kawamoto's activities are considered uncanny. -
Nakagawa is said ta be admired by ~he new candidates also for his energetic
leadership on election techniques and his quick decisions regarding fund
disbursement.
Designs of the Big Five Factions and the Pdakagawa Faction
The case of Tooru ;Iogami, wh~o is running in the Toyama prefectural first
electoral district in which the LDP wants to sweep all three seats, is
give~- He had served two terms in the prefectural assembly and, although
he was closely affiliated with Noboru Takeshita of the Tanaka faction,
he joined the Nakagawa branch of the Fukuda faction. Said Nogami: "If
there were a Takeshita faction, I would have joined it. The public is higtily
allergic to Tanaka faction's "Lockheed" incident, and my political beliefs
also differ from theirs. The Ohira and Nak~sone factions already have _
incumbents running from my electoral d~.strict.'
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Cooly considered, it would be advantageous for me to fnllow Takeshita
or Shintaro Abe, who will take over the big factions. However, I came
to respect Nakagawa for his quick responses to my requests. Upon con-
sulting Nakagawa, he recommended joining the Fc~kuda faction and even intro- ;
duced me to Fukuda and Abe."
~
,
Nakagawa does not return to his constituency, Hokkaido fifth electoral
district, during the entire election period. This is because he is
traveling throughout ttie country to support the 19 incumbents, one former
Dietman seeking a comeback, and the more than 10 new candidates of the ;
- Liberal Ref orm Associates Club. ;
In all likelihood, there will be moves for the formation of a Nakagawa ~
faction after the election. Nakagawa has said that he has no intention
of seeking the presidency and prime ministership, and that he seeks the '
number two ranking post which is the prime mover in politics. There is
talk, however, that LDP is moved by Ohira and Fukuda. Abe had to precede '
Nakagawa as party president. If;one does not await his turn and ~umps
the gun, the debacle that fell oir�Tanaka, who had bypassed Fukuda, can ~
occur. Because of such talk, there is nothing definite as to when the i
Nakagawa faction will be formed. rlakagawa would like to have five or I
six of his new candidates elected and to have a total following of 20
Diet~en. Then even, if he Is not referred to as one of the big six i
factions, at least the public would make reference to a"big five factions ~
plus the Nakagawa faction." In such a manner, his ambitions are being ~
made known. His so-called rivals, Takeshita and Abe, are confined to
activities within the Tanaka and Fukuda factions while he (I~akagawa) will
be factionless and free to do whatever he pleases. ~
I
While the established big factions and the newly rising forces are battling I
fiercely, the intermediate factions are withering away. This is inevit- ~
able with the demise of the faction heads, such as Mikio Mizuta and Naka
" Funada and the retirement of ~tsusaburo ShiiTYa. Movements by the incum-
bents are taking place, hawever, such as Shun Hasegawa of the former
Ishii faction, both Shiro Hasegawa and Yuzo Matsuzawa of the Shiina ~
faction joining Nakagawa's Liberal Reform Associates Club; and Mitsuo I
Horiuchi of the Shiina faction affiliating with the Ohira fac~tion. I
Formerly with the intermediate factions and acpiring for a comeback are (
Munemori Akagi with the Miki f action, Shinjiro Yamamura witln the Tanaka ~
f action and Kiyoshi Mizuno with the Ohira faction. i
~
~ Caught in the great change within the LDP, whose president is selected f
essentially through the election by the 1.5 million party members and ~
- friends, the intermediate factions which hitherto had the swinging votes
whic~ could sway the elections, have naw f allen to an insignificant role.
Among the mainstay Dietme~ with cabinet aspirations, who had been affiliated
with intermediate factions, are those;who connive first to offer concen- I
trated support to certain types of factionless new candidates 3nd then, ~
with the successfully elected new candidates, join the Ohira faction
with cabinet appointments as their bargaining reward.
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The Ohira governmer~t has been boasting of gaining a stable majority of
271 seats, but the truth is that a fierce factional struggle is taking
place within the LDP. This conservative party struggle is directly
~ related to the election of the LDP president at the end of next year.
'N~W' LDP Candidates ;
- Ohira faction . . . . . . . . . . . . 20 (Excerpt)
Fukuda f action . . . . . . . . . . . . 11 '
Tanaka faction . . . . . . . . . . . . 6
Nakasone faction . . . . . . . . . . . 7
7 ~
Miki faction . . . . . . . . . . . . ~
Nakagawa faction . . . . . . . . . . . 6 '
~
.
Others:
Leaning toward Ohira iaction 2
Fukuda faction . . . 2 j
~
Tanaka f action . . . 2 ;
Miki faction . . . . 2 ;
~
' Ohira, Fukuda, ~fiki factions 1 i
I
Independents (no faction) . . . . . . 22
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Total number of new candidates 88 '
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(Research done by Kiyoshi Iiji.ma, critic on political affairs) I
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COPYRIGHT: As ahi Shimbunsha ?979 '
9134 I
CSO: 4105
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ECONOMIC
NTT BECOMES TARGET OF U.S.-JAPAN ELECTRONIC TECHNOLOGY WAR
Tokyo CHUO KORON in Japanese Jul 79 pp 251-265..
[Article by Critic Masaomi Ohmae]
[Excerpt] Behind the negotiations on the opening of NTT, there lurks a
violent battle centering around electronics technology that will decide the
supreme ruler of the information era. ,
Senator Frank Church set out a solution that strives for a"renaissance" of
technology. As chairman of the prestigious Senate Foreign Relations Commit-
tee, he was compelled to wrestle first with American's regeneration rather
than with strategies toward the USSR. He calls for striving for a tech-
nology revival, raising productivity, regaining international competitive
power, increasing exports, and overcoming inflation by means of expansion
of research and development and plant and equipment investments.
The technology debate has suddenly become lively. "'These clays, 35mm
cameras and color televisions are :~ot being produced in the United States.
Our country is a world leader only in computers, aerospace and advanced
electronics. Japan is making extensive investments to overtake the United
States even'in computers." (Ms Martha Frangiadachs of the U.S. Machin~e
Industry Association). "Japan is succeeding in computers, previously domi-
nated by the United States, and presently, they are going for the same in
aircraft." (Robert Strauss, special trade representative).
THE NEW YORK TIMES, in an editorial, also deplored that the United States
is falling behin~i the remarkable technology developmsnt of Japan and Western
Europe and poirited out that, although the number of patents U.S. firms re-
ceived from the U.S. government from 1971 to 1976 decreased 20 percent, the
number of patents foreign firms received from the United States increased
- 25 percent during that time.
There ~s an unbelievable u~ieasiness in the United States which once boasted
the world's most advanced technology in all fields and defeated Japan and
Germany in World War II and became the post-war world leader thanks to it.
Now, when one walks the streets of the United States, one cannot help but
notice that the best cameras the people have are almost all Japanese made,
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and that low fuel cost Japanese cars have increased. Not only that, Japa-
nese made producCs have increased even in the advanced electronics field ~fY
of electrical communications equipment, in which the United States is be- _
lieved to be the leader. The export volume of telephones, radios, tele-
visions, cameras and the like to North America will reach 67.1 billion yen
ir~ JFY 1979.
In particular, it was NEC's successful bid for SBS (Satellite Business Sys-
tem) earth stations that opened the eyes of America's business circles.
The SBS is a communications network IBM and others had planned and is a
system whereby the home office of a firm transmits data via satellite to
its branch offices throughout the country. The branch office receives the ~
signal via a small earth station set up in a parking lot or the like. ;
Hughes Aircraft is making the satellites; NEC fought six U.S. manufacturers ~
in the bidding for the earth stations. In the end, both NEC and Hughes
caere successful�in their bids. Each unit costs more than 500,000 dollars; .
each company received an order for 100 units for the first phase. !
Americ~'s electronics industry circles were surprised at NEC's successful
bid, especially since SBS received attention as the enterprise in which ;
IB::, the computer company, was taking a hand in communications. A.~d in ~
particular, the low cost could not be believed. Perhaps expressing the
i.ndustry's ~ind, AEI (American Electronics Industry Association) Vice- ;
chairman Sodolsky, on a visit to Japan, ask an NTT executive, "Isn't this ;
dumping? Wasn't NEC able to lower the price for export because it is sup-
plying NTT with earth stations?" ~
Unfortunately, since Japan has no communication satellites, there is no de- ~
mand for earth stations. NTT management dismissed the suspicion with a.
laugh. The United States is a one-man show in satellites. On its own, '
NEC started early on development of earth stations, and has already risen
to being the top manufacturet in the world. An SBS executive who visited ~
Japan said, in connection with NEC orders, "the Japanese technological !
genius is well known world-wide" and "I know full well the high level of ~
Japan`s technology and the strength of its competitive power from the ~
aspect of cost." Given the explanation by this concerned party, perhaps
Japanese manufacturers have strength in these areas.
But, it must be an uneasy thing for the United States is trying to solve
its economic distress by a technology revival, for Japan to have started a
"counter-landing" in its own bailiwick. The United States has to make a
"second landing" in Japan.
If a"second landing" in Japan is difficL_t or impossible, it would not be
strange if a cry to shut out Japanese nroducts is raised, as it was with
the northern Minnesota steel workers, as another solution. That cry has
_ become extraordinartly loud because next year's presidential election has
drawn nearer.
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How Did NTT Enter the Picture
In Washington, SANKEI correspondent Abe warned, "Watch out for Connally." ;
Afterwards, correspondent Abe sent a spine-chilling report. Connally, who ;
seeks nomination as the Republican Party's presidential candidate, was
giving anti-Japan speeches in various parts of the country and evoking a
- popul;ar response. At a Washington gathering, he violently attacked Japan's
trade policies, saying that Japanese products ought to be shut out from the .
United States if Japan does not open its market. At that time, "when a
Japanese TV cameraman engaged in covering events in the assembly hall
circled around behind Connally to bring the audience into camera view, the
assembly hall was enveloped in loud laughter. It appeared to the Americans
that the Japanese cameraman was trying to attack Connally from the rear as
he was ma.king his anti-Japan charges."
"At that time, Mr Connally, turning to the rear, said caustically, 'You
appeared ~ust at the right time. If you don't understand from my saying
' it once, I'll say it many times,' and there was loud applause again in the
' assembly hall." (SANKEI, 26 April)
Changes such as the above in America are the background to Strauss's strong
demands placed on Japan in the U.S.-Japan negotiations on opening NTT, ~ust
~ like Cordell Hall's demands before Pearl Harbor. In addition to the general
tendency to take only a short-sighted look at inflation, Strauss himself
was too eager for success.
Perhaps the real reasons why he high-handedly placed such demands on Japan
will not be made public except in the life to come, but there is no doubt -
, that he was drug into it by Connally, who is critical of the Carter admin-
istration's timidity toward Japan. Both are riatives of Te:~as and former
attorneys. Texans are.hard-nosed people and are famous for their love of
a political fight. And on those points, they are both second to none.
Moreover, Connally changed from the Democratic Party to the Republican
Party, held authority as the Secretary of the Treasury in the Nixon admin-
istration,
On the other hand, after the 1968 presidential election, Strauss was called
to Washington from Texas in order to rebuild tY;,~ Democratic Party which had
fallen to pieces; he did all he could to rebuild tihe Democratic Party under
a Republican administration, first as the person in charge of finance of
the National Committee and later as Chairman of the National Committee, its
highest executive officer. He cannot forgive Connally for betraying the
party, and it is even more difficult for him because Connally is basking ,
'in the limelight as a favorite candidate of the Republican Party.
Perhaps because of a great shortage of talented men in the Carter adminis-
tration, Strauss has been given one difficult ~ob after another. His
greatest duty will be to get President Carter reelected next year. In ,
order to do that, he had to have the Tokyo Round, for which he was respon-
sible at that time, ratified; and, in order to do that, he had to obtain
= the greatest concessions from Japan and at the same time outwit Connally.
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There is no doubt that Strauss wa~ backed by such influential manufacturers
as IBM and ITT. Although the developing cou.ntries want electrical communi-
cations networks, they lack the ability to pay. Because matters are not
going well between the United States and USSR, the eastern European market
has fallen flat. Looking at the domestic situation, the Japanese were
playing havoc there too. So naturally, they turned to Japan.
The annual market of NTT, which has a monopoly on Japan's communications
network, is 3 billion dollars. That is almost entirely domestic orders.
Foreigners have not tried to sell to it in 20 years, but if this lucrative _
market should open at this point in time, and if foreign manuFacturers are :
allowed to come in, this would be a greater opportunity than could be asked
for. A characteristic of this kind of equipment is that, once deliveries
are made, it is difficult to end a contract. So, U.S. manufacturers put ,
ideas into Strauss and others to securs a much better deal. Finally, there
we~re manufacturers wh~ pleaded that it be ~?pened to digital exchanges, the ~
most crucial portion.
But it cannot be thought that IBM and the like plotted to make NTT the
target from the very beginning. First, it was decided in the Tokyo Round
negotiations that "no distinction will be made between one's own country
and foreign countries in the products each country's government purchases."
The United States said it would open government procurements in an amount
of 30 hillion dollars, but, afterwards, that was lowered to 12 billion
dollars through excluding the military, NASA and such. The United States
urged Japan to open up 7-8 billion dollars. i_
However, Japan has only about 3 billiun dollars controlled by the central '
i
government. The United States said that was quite out of the question and
demanded the cpen~ing of 141 quasigovernment institutions, including public i
corporations a;�d the like. At that time, the name of NTT, which has a
procurement bud;et of 3 billion dollars, first came out.
It ~~emed that the United States did not understand NTT's character very I
well. AT&T (American Telephone and Telegraph), the monopolistic telephone !
company, constitutes more than 80 percent of thP market with.the rest
shared by more than a thousand companies, but all are private enterprises. ~
America and Canada are the only countries in the world where private enter- '
prise handles the telephon~; in other countries, it is publicly operated. I
TherFfore, there was no one in U.S. government circles experienced in the i
tP~ephone business. When a conference of experts from the United States
and Japan opened in Tokyo regarding the opening of NTT, the United States i
was forced to dispatch as its STR (Special Trade Representatives) not
government officials but executives from business circles (GTE, Western
Electric, Northern Telecommunication, Rockwell International and the like).
Formal negotiations are carried out by government representatives from the
two countries, so this was a strange conference. In the past, there were
arms reduction negotiations between Japan, the United States and England, _
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which made decisions on possession of warships. Although experts like
- Isoraku Yamamoto were present as participants at that time, there was no I
participation by telecotmnunications technology experts from both parties in ;
the NTT negotiations. Then, in Washington, there ~~ere such episodes as ~
when the other party brought up the name of a piece of machinery, it was !
uhintelligible to the Japanese, and even though they made inquiries to ~
the home office, no one knew. ~
During that time, the full story of NTT was made public to both Japan and ~
the United States--that it was unexpectedly large and its technolagy level ;
was the world's highest. The NTT negotiations were completely different ~
in character than the regulations on the volume of textiles or salmon and ~
trout. ~
Nippon Telegraph and Telephone Public Corporation i
~
Nippon Telegraph and Telephone Public Corporation is normally shortened to i
Denden Kosha or Denden, but nowadays the English name most familiar to ~
U.S. authorities is NTT. It goes without saying that it is the publicly I
operated telecommunications business that handles telephones, telegraphs
and also data communication, and it is the most successful among post-war
" Japan's "successful."
There are 320,000 employees. This does not match Japan National Railways' ~
420,000 employees, but it far exceeds the 230,000 in the 5elf-Defense ~
Forces or the 200,000 in the National Police Agency; and Nippon Steel
Corporation, Japan's largest private corporation, is no match for it with
i
70,000 employees.
Assets are 7,722.7 billion yen. That is more than double the 3,455.3 bil- i
lion yen of Nippon Steel Corporation. JFY 1977 budget was 3,403.5 billion ,
yen. Since the Self Defense Forces Budget is 2,904.5 billion yen, NTT's
annual budget exceeds national defense expenditures. Annual sales are
_ 3.55 trillion yen. It is one and a half times the 2,384.6 billion yen of ~
Japan National Railways and the 2,326.1 billion yen of Nippon Steel Corp~ora-
tion. Moreover, Japan National Railways c~ntinues to have a deficit, as
is commonly known. In JF'Y 1977, it had a deficit of 833.9 billion yen;
but NTT made a 438.9 billion yen profit. Even Nippon Steel Corporation's
profit was only 7.2 billion yen.
The amount of plant and equipment investments was 1.6.trillion yen. There
is no other enterprise where such an investment is, made by one company.
- Furthermore, it has scheduled an enormous investment of 9 trillion yen in
its 5-year plan beginning in JFY 1978. Its annual procurement volume is
600 b~llion yen. There is no other er.terprise thst purchases as much.
NTT's employees number 320,000, but there are 300 subcontractor manufac-
turers surrounding it. When the major manufacturers' subcontracts are .
added in, the number of allied industries' employees reaches 600,000. So
to speak, nearly 1 million people are making their living off NTT.
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NT'r rises above the common in its personnel and financial scale and in its
superior operations situation. It is certainly Japan's greatest corpora-
tion. Furthermore, NTT raised Japan, ruined in the war, up to the world's
second pl.ace "telephone society." The world's first is the United States,
of course. It has nearly half of the world's 15S million telephones. But
Japan increased nearly 100 times from 540,OA0 at the time of defeat to 53
million, and has completed a syst~m of direct dial throughout the country~
Concerning the quality of service, Japan's trouble rate is the world's
lowest. Although the monthly trouble rate per 100 telephones is 2.6 in the
United States and 4.2 in England, it is only 0.6 in Japan. There is tele-
phone trouble only once every 13 years per telephone user.
Until the question of opening NTT became the focal point of the U.S.-Japan
negotiations, concerned parties in both Japan and the United States had not
noticed how huge NTT was. Even we hardly knew it. That was to be expected.
Tha~ is because NTT has no "public image." Even though a similar public
service, newspapers are delivered daily by a person, and someone comes for
the fee at the end of the month. Gas and electric meters may be outside,
but, even so, a meterman comes to check them.
However, all telephone bills are recorded automatically at the telephone
office. Charges are drawn against a bank. All we get is a piece of paper
that records the total amount of the charges. We are not i.nformed of the
details of how much the cost is because of when and where the call was
placed. If we are late on paying the charges, a call demanding payment
will come; and, if one does not pay, a public emplo}~ee will not come to `
seize the telephone; it will be disconnected automatically.
Since telephone trouble sel3om occurs, repai.rmen also do not come. The only
time one has contact with an employee is when the operator gives a number,
and this is only a voice, no face is shown. No matter how much we use the
telephone, we know only a cold telephone. There is almost no human contact '
with NTT.
The reason there is no human contact is because the telephone is not a human,
but rather an e"lectric signal. Electricity moves at the speed of seven and
a half revolutions around the earth per second, and is unevenly distribueed
_ in our environment, but it cannot be seen. It cannot be seen, but when some-
one dials a telephone, the desired number is selected almost in a split
second from 53 million numbers, the charge is computed, practically any-
thing and~everything is done. The 320,000 employees are just too many.
There are not telephone strikes since the labor union cannot touch the
mach~nes. Because Japan National Railways does go on strike, both those
who use Japan National Railways and those who do not cannot help but be
aware of Japan National Railways' existence. But since there is no tele-
phone strike, the~existence of NTT is more and more forgotten.
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Also, the Japan National Railways' "Shinkansen" is the quintessence of our
country's railroading skills, but it has brought about noise pollution and ;
radio int:erference and it runs only between Tokyo and Hakata. Because of
oppc>~irion movements by resl.dents, i.t i.y not easy nownd~ys E~r electric ,
power companies to build power plants, and all the more so if there are
nuclear powered.
On the other hand, instead of being opposed, telephone installation is wel-
comed everywhere. Cities, towns and villages cooperate in the opening of i
a telephone office because they can have telephones installed. No matter ;
where, the "unsociable" telephone office building stands in the best part ~
of the business section. That is b~cause the telephone is a clean elec-
tricity that does not bring pollution (except harassment). Thus, before
~ one was aware of it, the entire country was connected with direct dial ~
telephones which must be called the "shinkar.sen" of electricity.
But, since the existence of an organization becomes known only through '
negative news in this modern mass communication society, almost no one
realized that NTT was so large an3 so prosperous.
NTT's Technology Development
It is all the more strange that it reached this technology level. After
the defeat, when Japan fell to being the "fourth rate power" MacArthur
called it, Japan squandered its meager foreign reserves, on par with an
underdeveloped country, in its telephone enterprise, and, along with bring-
ing in microwave equipment and exchanges from England and West Germany,
it continued to make visits to its mentor Bell Laboratories of America's
AT&T.
But that was not in order to Y,ecome a"telephone colony" of the advanced
nations, but rather, in order to develop its own technology by using ad-
vanced technology as the stimulus material. Making their motto, "Tech-
riology is power, they put about 2 percent of the annual budget into re-
search and development expenditures. Top engineers were given special
laboratories named after themselves, and efforts were made to catch up
with and surpass the United States and Europe.
According to what NTT's engineers proudly state, the result was that
Japan's technology became equal to that of Western Europe in the first
ha.lf of the 1960's, and reached the same level as the United States about ,
1970. It is equal with the United States in switching equipment and has
outdistanced the United 5tates in transmission equipment. As for micro-
wave analog, although 1,700 circuits can be handled per wave in the United
States, 3,600 can now be handled in Japan.
In digital transmission technology, although it is 267 megabits in the
United States, it is 400 megabits in Japan. Microwave was 10 years behind
the United States, but Japan caught up about 1965, and, having taken the �
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world lead in practical application, it has now outdistanced the United
States. The aforementioned NEC earth stations are based on microwave _
technology development.
Somehow it seems that a distinctive feature of Japan is to make prompt ~
practical application of an original idea from elsewhere. An example of .
that can be seen when one visits NTT's spectacular electrical communica-
tion laboratory at Musashino inside Tokyo. The world's largest laboratory
is AT&T's Bell Laooratories with 17,000 employees, but Japan is second
with 3,300 employees in the three laboratories of Musashino-shi, Yokosuka-
shi and Tokai-mura in Ibaraki Prefecture.
There is an LSI design room in the Musashino Laboratory. The LSI researched
there have been put to practical use; calculators as thin as a card inun-
date the streets and The Invaders [game] is now enjoyed.
There is a magnetic bubble memory device. This is something the Bell _
Laboratories conceived but NTT's laboratories made prompt practical appli-
cation. of it and surprised Bell Laboratories personnel who came to visit.
It is the same with optical fiber communication. This is a method of send-
ing a signal by passing optical energy, changed from electricity, via glass
fibers as thin as 150 microns in diameter. This was also conceived first
by the United States, but now Japan has advanced fLrther and has already
succeeded in a 20 kilometer field test. A test for practical use is ex-
pected 2 to 3 years from now. Likewise, the visiting Bell Laboratories
staff looked on with envy.
We.ll th~n, in which field is Japan behind the United States? NTT's engi- _
neers candidly admit it is in large-scale computers, software, commur_ica- !
tions satellites and solar cells. Of these, coimnunications satellites and
solar cells are not needed for the present, but the problem for the future j
� is computers which will make up the nucleus of telecommunications. This
is the very field the United States demanded be newly opened at the last ~
moment in the U.S.-Japan commercial trade negotiations in the spring of ;
this year, and that Japan flatly refused. ~
i
,
We11, what is it that brought NTT's level of technology to the point of ~
being equal with the United States in some areas and surpassing the United j
States in other areas? ~
From my point of view, perhaps one thing was a burning conv~ction on trying ~
to establish "communications sovereignty." Until World War II, the world's i
te'lecommunications technology was controlled by the United States and ;
Europe. Prior to the war, Japan's submarine cable was controiled by the
Danish company, Grea-t Northern, and as for the telephone, there w~as nothing +
to do but introduce the machines from Europe and the United States. But I_
the telephone and telegraph are the nerve center of the nation. There can- ,
not be any real independence and security for a country so long as it de- (
pends on foreign countries in this. This belief can be clearly gathered ~
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fYOm the words of the NTT engineers with whom I have spoken. Unmistakably,
that was one of the motivations that thrust NTT's technology to the world's
highest ].evel.
Nex~,, there is perfectionism which aims at perfection at all costs. There ~
is a special room for carrying out LSI durability tests at the Musashino
LaUoratory. Here, they put 10,000 LSI into a refrigerator-like box, turn
on the electric current and test for trouble for a period of one year. It
is said that a durability test on submarine cabl.es continues for 2 years.
NTT's perfectionism makes it try to lower the trouble level to the lowest
degree.
The previously mentioned optical fiber is a delicate fiber extruded from a ~
mass of glass as the basic material. The laboratory is also making the '
basic material. In a word, the laboratory has become a glass manufacturing ;
factory and will not entrust it to subcontracts. This brings to mind that i
the Japanese navy consistently built its ships, such as the Musashi and
Yamoto, at its own naval shipyards. ;
Perfectionism affects the subcontract manufacturers. NTT makes an inspec- ~
tion visit to its subcontract factories at the time it places orders, and ~
makes a close inspection. For example, when it orders polyethylene wrapped ;
wires, it specifies even the raw materials of the polyethylene. It has a ~
reputation throughout the world for such strictness. NTT officials boast
that the quality of telephone service is guaranteed to be the world's ;
most trouble-free on account of this kind of strictness.
Well, thi.s kind of perfectionisni uses only specific manufact~:rers--a manu-
facturer who meets NTT's strict requirements has a superior technology,
works together actively, promotes mutual understanding, embraces their .
mission and has a sense of being a community bound by common fate. For
key products, the manufacturers who possess such qualifications are limited,
_ of course. They are Fujitsu, Ltd., NEC, Hitachi, Lt3., and Oki Electric
Industry Co., Ltd. It is absurd to give an order by means of competitive
bids to a subcontractor af dubious origin.
A manufacturer has to be designated. So, NTT gives the know-how developed
in the laboratory to favorite manufacturers, and nurtures the manufacturer
along with letting it make the product. Also, it lets special manufacturers
participate in the development from the beginning stages. On accaunt of
that, the manufacturer acquires valuable know-how. For the manufacturer,
the value of the know-how gained from joint development is appreciated
more than the money it receives.
Naturdily, NTT and these special manufacturers form one family. NTT guaran-
tees them work, and, together with rendering devoted service to NTT by sup-
plying excellent products, they guarantee the livelihood of NTT's employees
by accepting NTT's retirees as directors. Lt is called the "Denden Family,"
and it forms a huge mutual support structure seldom seen even in Japan.
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When the family is included, the number of employees would probably reach .
the magnitudp of 5 million.
This mutual support structure has expanded to include politicians connected
with NTT and a large number of the members of the Liberal Democratic Party's
coim~?unication committee is a part of it. Even in the Japan Socialist
Party, a seven member counnittee was set up and, as seen even in the recent
Japan-U.S. negotiations, they conducted lobbying activities on behalf of
NTT.
The fact that NTT raised Japan to be. the world's number two telephone soci-
ety and to have the world's highest technology in specific fields is pre-
cisely nothing less than the maximum demonstration of the merits of this
cliquish mutual support structure.
Not only that, but the manufacturers belonging to the NTT family put to
practical use the know-how obtained from their work for NTT in export com-
modities, and successively advanced into .foreign markets. The export volume
of Japan's telecommunications equipment has increased every year--in 1975, ,
14~.7 billion yen; in 1976, 163.9 billion yen; in 1977, 166.7 billion yen;
and in 1978, 202.4 billion y~n. This was almost"entirely from family mem- '
bers, with the majority being from Fujitsu, Ltd., Hitachi, Ltd., and Oki !
Electric Industry Company, Ltd.
That is to say, NTT reared not only a communications industry within the '
country, but also an export industry by means of its cliquish structure. ~
It was mentioned before than when NEC made its successful bid on the earth :
station in the United States, U.S. busir.essmen argued, "Isn't this dumping
from NTT's supplies?" Even though it is not dumping, NEC was able to de- ,
velop and original technology and be victorious over companies in the
Un:ited States, the home of this technology, precisely because it (NEC) was
tenderly nurtured by NTT. It follows from the foregoing that, for the '
U.S. manufacturers, the ringleader of the intrusion into the U.S. market j
was not individual Japanese manufacturers, but had to be NTT. ~
I
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The Focus Is Electronics j
i
It is not strange that in the course of U.S.-Japan negotiations, when the ~
United States discovered the realities of this "faceless" giant, NTT, it i
became convinced that this is a market that had to be opened. First, NTT, ~
which had built a communications technology empire through its excessively ;
Japanese family system, is a symbol of Japan's closed market. ~
i
Secondly, even though the United States were to get all of NTT's procure- ~
ment orders, st 3 billion dollars, it cannot settle the 11.6 billion d~ollar i
deficit with Japan. But, as Strauss said, "it is quality rather than quan-
tity." What the United States is trying to sell to NTT is not agricultural
products, such as oranges or beef, but the avant-garde technology of ad-
vanced electroT~lics, in which they believe themselves to be the world's !
leaders. ~i; ~ ~
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The "Jones Report" set forth very clearly the U.S. posture at this stage. ,
NTT insists there is nothing it should purchase from the United States. ~
But that same report counterargued that, in the opinion of "experts in
general," the "U.S. made equipment is superior from the standpoint of
technology and is competitive from the standpoint of price." ("Jones
Report," Highlife Publishers) ;
It is reported that the U.S. manufacturers want to be allowed participation ;
in NTT's development in the early stages, the same as Fujitsu and NEC. If
there is cooperative development, they can gain a fair share of NTT's com-
- munications network. It will take considerable time to participate in de- -
velopment, but it will be profitable because, in several years, they will
be able to have their expensive products purchased.
In short, the U.S. manufacturers want to b e allowed entry into the NTT '
family circle. This was a dilemma for NTT. Because, up until now, they �
have been quite comfortable working just within the family. They do not
want to use anyone outside the family, even Japanese manufacturers such
as Matsushito Electrical Industrial Co., Ltd. They want to use the Ameri- ;
cans even less. l
If "strangers" come in, they cannot attain the perfectionism that guaranteed I
the quality of the product and service. Moreover, the price system wuuld j`
have to crumble due to competitive bids, and, besides that, various estab- !
lished systems would fall into disorder. That would be intolerable for the
family that has been allowed to "grow beautiful large flowers inside its ~
~
'hothouse."' '
I
i
But that does not hold true for the Americans,with an "uberzeugungsverbrechen" i
. in the philosophy of a free market, comprised entirely of "strangers" and in I
which the person who excels in free competitidn wins. It is argued that if
� goods are supplied according to specification, NTT's communication network
should function perfectly. If the goods are cheaper and superior to Japa-
nese products, NTT should gain that much more profit.
Japan counterargued that the U.S. telephone market also is not open to for.-
eign countries. AT&T, which holds 80 percent of the U.S. telephone market,
has its 100 percent financed subsidiary, Western Electric, and orders al-
most everything from it. They open the door to foreign countries in prin- ~
ciple, but actually, foreign countries cannot participate. Moreover, the ~
U.S. military, FBI, CIA, Department of State and other government agencies ;
each has its communication network, but these are not open. ~
Perhaps the United States would answer thus. If one talks about opening
government procurement, the United States has offered more than enough.
Also, AT&T is a private agency. Moreover, AT&T has recently decreased its
orders to Western Electric from the previous 90 percent level to a 70 per-
cent level. And the government is following a policy of eliminating AT&T's
monopoly.
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Japan stated that except for undeveloped countries, there is no example of
an advanced country approving a foreign country's participation in the
heart of a national telecommunications network. In the Tokyo Round, EC `
did not add the key parts of their telecommunications to the opening of
- government procurement."
The United States replied: "The imbalance between the United States and
Japan in the balance of payments is extraordinary. Moreover, the United _
States has entered the private markets of the advanced nations, but has not .
entered Japan's. Haven't Japan's telecommunications manufacturers sold
- several million dollars to the United States?" Regardless of whether these
kinds of questions and answers were exchanged during diplomatic negotia-
tions, Japan made ~oncession upon concession in the course of the negotia-
tions, and finally gave in to the extent of promising to open up the key
parts of carrler equipment, microwave equipment, and coaxial cables. But,
because the United States demanded a further opening of more key items, ,
- that is, computer related items, Japan closed the negotiations without hav-
ing given that away.
However, the real substance of the problem is difficult to understand when
one gets into the details of the negotiations. The "Jones Report" has
shown the real substance perfectly. !
According to the report, the communications related field is "one of the ~
industries of the future." The reason is that this field is a"high value- '
added industry of the future." Until now it was thought that the United
States, as a high level technology and capital intensive nation, is sup- ~
posed to lead from the aspect of new technology development, and other na- :
tions should adopt more labor intensive and lower technology intensive
industry." ;
However, according to the "Jones Report," Japan has tried to seize the
"leadership" in this field also. The "Jones Report" indignantly asked,
"What kind of products can the United States make for export" if Japan
gains leadership in this technology field through subsxdy and restrictive I
trade practices.
It seems that the United States is asking Japan to get out of the advanced I
electronics field, such as telecommunications equipment. The reason is j
that this is America's domain and it seems America can be regenerated only ~
~ thx'ough it . ~
It goes without saying that Japan cannot get out. There might be some addi-
tional political considerations, but Japan also has no way to continue to
survive except through high technology. It happened to be revealed in the
NTT negotiations that Japan and the United States are destined to have
fierce competition in the avant-garde technology ~ield.
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Significance of Telecommunications
Here, we have to make a further inquiry into the significance of telephones
and teler.ommunications. The telephone is not only an instrument for con-
versation. ,
After the war, Japan rose to be the world's number two telephone society.
This was wholly the result of high level economic growth. However, at the
same time, it cannot be overlooked that the telephone markedly accelerated
economic growth. On this point, the Electrical Communications Laboratory--
' it is the only full-scale laboratory in the world researching telephone
and telecommunications from the perspective of the humanities--quantita- '
tively grasped the economic usefulness of the telephone. Accordingly, tele-
phone installation and direct dialing markedly raised Japan's productivity. ~
Nowadays, there is but a feeling that it used to be other than it now is, ,
but there was a time when it took more than half a day to call between
Tokyo and Osaka. One could hardly leave his desk while waiting for the
telephone. Direct dialing between Tokyo, Nagoya and Osaka came in the ~
fall of 1953, at the time a cease-fire agreement was reached in the Korean ;
War. It was gradual but Japan was heading toward an economic comeback. j
Soon it entered a period of tremendous high level economic growth. And ~
during that time, while mutually expanding each other, the economy and the '
telephone grew witk? increasing speed. '
~
. Now the number of telephones in Japan is approximately 53 million. In num- '
bers, that is second in the world; but, in numbers per 100 people, Japan is
number 8 with 40.8 telephones. Even here, the United States is first with
71.8, followed by Sweden, Switzerland, Canada, New Zealand, Denmark and ;
Finland. '
. ;
However, when the number of telephones is looked at from the aspeCt of land ~
area per unit, Japan has very many. Although the United States has 16.7 '
telephones per square kilometer, Japan has 135.2. ~
~
The aforementioned Electrical Communications Laboratory investigated the ~ ~
correlation between the number of telephones and population density by .
country. The countries with low population density and advanced telephone
(systems) are the United States, Canada and Sweden. These countries have
. widely scattered homes and the telephone was developed for use in long
distance communication. Countries where the population density is low and
the telephone is not developed are the developing countries. Countries
where the population density is high and the telephone is not developed
are the medium developed countries. These include West Germany and France.
However, Japan is the only country in the world where~the population density _
is high and telephones are widespread. Use of the telephone in Japan is
definitely not only for long distance communication. Even next door neigh-
bors in a highly crowded neighborhood talk on the telephone. .
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It is said that there are about 50 billion telephone calls annually in
Japan. In the United States, ther~ are 200 billion. The Japanese use '
the telephone 1.2 times daily; the Americans use the telephone 2.5 times.
However, when looked at as telephone calls per unit area, there are 36,900
telephone calls per square kilometer annually in Japan; and 2,160 in the
United States.
When one considers these data, it must be said that Japan is an extremely
unique telephone society. In short, when one looks at unit space, there
are 10 times more telephone messages flying past each other than in the
- United States. They constitute a crowded information space. With the
United States as the standard, Japan is living in an information space 17
times its land mass. '
More than that, the number of telegrams has decreased on account of the I
spread of telephones, and the number of letters has increased, though ,
slightly. As for the so-called media, the Celephone may be making the :
Japanese communications activity more and more lively.
It is said that now the world's electrical equipment market is expanding ,
- at the rate of 7-8 percent per year. This is because the developing na-
tions are introducing communications networks and broadcasting networks ,
before anything else.
However, this is not because the authorities are doing it for communica- i
tion for the masses, but because a national connnunication netwark, in which
the central ~overnment would draw information from the rank and file and
would convey orders to them, is an indispensable instrument for national ,
, un:ity. A new country, which has an unstable political status and has rebel- ;
li~us factions in the provinces, is driven by the necessity of having one. ~
Even in Japan, the Mei~i government, along with opening the country, imme- ~
diately introduced the telephone; and after having set about installing ~
them between Tokyo and Nagasaki in 1869, complete communication lines were ,
completed from Hokkaido in the north to Kyushu in the south from 1869 to
1873. That was because national unity was being aimed at. In the Seinan ~
War (Satsuma Rebellion) in 1875, the reason government troops gained '
mastery over the rebel troops was nothing less than that government troops ~
could be quickly dispatched by means of urgent messages sent by telegram
~ from Kumamoto. Likewise, when 3t was reported an anti-government charged ,
atmosphere existed in Tosa on the island of Shikoku in concert with the
Seinan War, the government hurriedly completed the communication lines ,
between Matsuyama and Kochi. ("Nihon Shihonshugi to Denshin denwa sangyo" .
[Japanese Capitalism and the Telegraph-Telephone Industry] by Tatsuo
Takahashi, Misuzu Publishing Center)
Also, around 1882-1883, when there was an argument in the~government about
the introduction of the telephone and whether it should be privately managed
or publicZy managed, the Ministry of Industry insisted on public management.
The reason was "private telegrams, recognized as a breach of the public
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order or an afEront to public mor~llty, can be stopped; also, it is pos-
sible to stop private message~ in the localiCy of the lines and r.esCrict
discusaion in time of disorder~ It is the same with the telephone.
Naturally a telephone ca11 can be stopped, if set up by Che government,
and can be strictly controlled; but if privately established, iC cannot
be taken ~.nto custody and will breed abuse." Making Che telephone public
mAnagemenr was a countermeasure for public order. (Same reference)
Presently, the aim of the developing countries in their eagerness to intro-
duce a telecommunications network, inappropriate to their naCional strength,
from foreign countries is no differenC than that of Mei3i Japan. A country
that has difficulCy installing a cable buys microwave gear. A country of
many islands tries Co cover the archipelago by means of a saeellite. In
the heyday of his power, Shah Pahlavi of Iran ordered not only telephone
equipment but also a special electronic monitoring network from the United
States. He had many young people trained in technology by having them
study abroad. This was in order to get information on rebellion factions
within the c~untry. Ironically, his new and powerful electronic monitoring
r.etwork was powerless against Khomeyni's ~assette Capes. The cassette
tapes Khomeyni used to record his inflammatory and agitative speeches in
Paris were secretly brought into Iran and were listened to in the mosques.
So khe advanced nations fight furiously in a battle for orders itt trying to
sell communication equipment to devel.oping nations. Since the developing
countries have almost no engineers nor basic equipment, the manufacturers
sell a complete plant, including everything from Craining of engineers to
after-care. Due to this, it amounts to a huge s um of money.
This is a simple profit activity for the manufacturers, but the orders have
a diplomatic meaning for the manufacturer's country, because relations with
the partner country are deepened on account of it and influence can be
exerted. Especially when the partner country is a country having a critical
importance from the aspects of resource security and strategy, like the
Middle East countries, each country~s government gets caught in the battle
for orders of communication network equipment.
Thus, whe*her they like it or not, the manufacturers cannot help but have
a political connect~on. To cite a bad example, ITT, which held the tele-
phone company in Chi~e, cooperated with the CIA to topple the Allende
government and tried to contribute large sums of money to the CIA.
On that point, the government of a country like Japan, which does not have
any sense for world strategy, does not support the overseas advances of its
communication industry. Moreover, since developing countries purchase com-
municd~ion equipment in combination with weapons imports and military aid,
Japan, having decided not to export weapons, is put at a disadvantage.
The direct significance thaC telecommunications technology has on national
security is even greater. The weight of communications on modern warfare
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is always growing greater. First, in order to display a maximum nuclear
deterrent, the central government has to control Che masses to move as it -
pleases. On account of that, information has to be sent in real Cime and '
rherefore, a precise, reliable communications neCwork is indispensable.
The climate of a communications technology war in each of the countries ;
surrounding Japan has worsened. The U.S. Seventh Fleet is deployed from
the North Pole to the South P^le. Through the use of satellites, the
center can get ahold of the location of the entire fleet. For example, ~
the flagship Oklahoma City in the Pacific and the aircraft carrier Midway
at anchor in Singapore can immediately converse by voice. The Soviet '
navy also used satellites at the time of their special "okean" maneuvers
- in the Pacific Ocean. Since the location of a U.S. or Soviet nuclear sub-
marine can be detected by the other when it goes on the air while at sea,
the submarine tries to send signals on a mass scale in a short instant.
This also demands an extensive transmis:ion technology.
The P3 is an airplane for detecting submarines. An optical fiber like
that developed by NTT is used in them. The P3 is like a computer itself; ;
its insides are full of various kinds of sensors. When wired with.~.metallic ~
wiring in the past, each built a magnetic field and caused mutual inter- ;
ference. However when optical fibers are used, no magnetic field is set
up nor does mutual interference take place. ~
Now, when there is an opening of hostilities, large and small missiles would ,
start flying. The weapons from now on are almost all guided weapozis. In
short, weapons are guided not by voice but by electronic signal. There- ~
fore, the communications equipment is key to a security system, and each
country adopts stringent secretive measures. The United States3, which per- ~
mits Japan the licensed production of the P3 and F14, does no'_ allow Japan ~
the licensed production of the communication equipment for these aircraft. ;
Rather, it has decided to bring it in from the United States. It is done i
this way even with an ally like Japan. Accordingly, Japan also allows its ~
own development to be done by national manufacturers. It is not strange ~
that these are manufacturers fostered by NTT.
i
Connection of Computers With Communication Lines
i
Thus, it is understood that the telephone and telecommunications are extra-
ordinarily widespread. Not only that, they will become more and more wide- ~
spread in the future. The reason is that there is an eagerness to connect ~
communication lines and computers. ~
i
Taking the United States as an illu~tration, the telecommunications indus- ~
try wich an annual turnover of 50 billion dollars and the data processing ~
industry with an annual turnover of 22 billion dollars have had a 15 per- ~
cent annual rate of increase, and have become a more and more promising ~
industry of the future. So, the data processing industry launched into
the communication industry. The communication industry started work in I
i
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data processinb. And there has been the tendency for communication lines -
and computers to be uniCed.
SBS, where NEC successfully bid for the earth station, is an example of a
computer manufacturer launching into communications. According to Che
plan, SBS launches two satellites. Users use them to send voice data or
facsimile signals to their branch offices throughout the whole country.
That is cheaper than using AT&T's long distance telephone. '
Even Xerox, the copy machine company, is planning a data communications
network that uses satellites, It will be called XTN (Xerox Telecommunica-
~ tions Network), and is a plan to transmit computer data and graphics--their
specialty--to 200 cities throughout the United States. Xerox has already
taken over Western Union International, a tslegraph company, and a computer
terminal company.
RCA is already performing satellite communication and it is said t'hat there
is the possibility that huge corporations, such as Exxon, the oil company,
GE and BoPing, the sircraft company, will launch into the computer communi-
cation industry.
These movements are all a challenge to AT&T which monopolizes the country's
telephones and telegraphs. By law, AT&T is prohibited from getting into
computer information processin~;. But recently, voices have been heard
urging that permission be given both from within the government and AT&T.
If permitted, huge companies, which carry information through communica-
~ tion lines and computers, would begin jostling each other.
Moreover, communications lines and computers would never remain just inside
the country, but there would be an eagerness to connect them w:ith foreign
countries. Just such a case i.s the information processing service Dentsu,
the advertising company, is offering in joint venture with the U.S. company,
GE. The computer is housed in Cleti:land. Japanese users will call the
computer in Cleveland by telephone, and give data input or receive data
output, or receive computations from this side of the Pacific Ocean. Re-
cently, NHK used this and processed the data from a public opinion poll.
In the same manner, Kokusai Denshin Denwa Co., Ltd. (KDD) entered into part-
nership with RCA, ITT and Western Union. They are also ~.lanning a service
whereby Japanese users can use an overseas data bank while retnaining within
Japan. The day may come when IBM's SBS, Xerox' XT1V and other newly estab-
lished computer communication companies will try to link Japan by use of
satellites. The voice urging the opening of NTT is perhaps a preliminary
announcement o~ that day.
Immense Chi,nese Market
If we turn our eyes to the west, there lies the immense "void regions" of
China. The telecommunications technology of this country, which is pushing
for modernization, is extremely low. The People's Liberation Army still
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uses dots and dashes. There ar4 400,000 telephones in the country. (U.S.
source) A telephone conversa'~ion between Peking and Shanghai is more dif-
ficult to hear than one between Peking and Tokyo.
There is an enormous role t~at a telecommunications network cannot help
but accomplish in the unification of this country. Although unification
of China geographically and in essence has been impossible since ancient
times, China was compelled to force a unification politically. On account
of that, the first Manchu emperor maintained the ureat Wall in the north
in an era before Christ, and, in the south, opened a canal to connect the
r north and the south. However, with telecommunications, a long river is
" easily crossed, a desert is crossed, a craggy mountain range is crossed.
All kinds of geographic conditions are overcome. Information is gathered
and orders are transmitted.
But, anyone who visits China perhaps would get a strong feeling of the
difficulty of stretching a cable in this kind of land. However, with micro-
wave equipment, a point alone is enough. Moreover, if a satellite is
launched the entire country can be covered at once from the sky.
Recently, there has been a flurry of visits by U.S. experts to China. AT&T
representatives visited China in May in ordez~ to deal with the "increasing
international telephone calls between the United States and China." A
little later, a NASA delegation, led oy Dr Robert Frosch, visited China.
China is likewise trying to use satellites for national communication.
It goes without saying, they can depend only on the United States. When
Teng Hsiao-ping visited the United States some time ago, he reached a funda-
, meatal agreement with Carter to have NASA put private use satellites into
orbit in the skies over China.
China has already started negotiations with COMSAT on the purchase of one
domestic satellite communication facility and earth station. The COMSAT
engineers are going to guide China. The price has not been announced, but
this kind of equipment is estimated to be 24 million dollars.
Undoubtedly, the problem is China's solvency. But, as long as China's
leaders are earnestly aiming at modernization, they cannot help but start
to work on the improvement and expansion of a national communications net-
work, which is the foundation of modernization. That also has great sig-
nificance for a military strat~gy toward the USSR. Thus, sooner or later,
Japan and the linited States will be in fierce opposition and competition .
over China's communicatians market. Sources at the U.S. Embassy in Japan
are aware of this.
,
What Shall We Do
The negotiations on the opening of NTT reflected the influence of the amount _
of money to erase Japan's black-ink balance with the United States and of
Strauss' individual personality. And tfiere lurked America's desire for a
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- change in its situation that would try to seek a regenerati~n by means of
" a growing co~nunications technology. No matter who the representative is
in the negotiations, the real substance will not change.
The veil was unexpectedly stripped off of the "faceless giant," NTT, by
this new state of affairs in the United States. Now unveiled, NTT cannot
continue to be closed as it has been for many years. A storm is already
raging in the United States for the elimination of the public communica-
tion industry's monopoly. Its afte-reffect will cross the Pacific and can-
not be kept from washing Japan's shores. Through free competition, perhaps
there are fields where improvement in service can be expecte~i.
However, we have known that the telephone is not just a simple tool for con-
versation, but has an unfathomable significance socially, economically,
politically, internationally, and also from the perspective of security.
And it has deep meaning for our lives. If the telephone network is the
nerve center of the country, the computer that carries out telephone ex-
change and data processing is the brain of the country. This brain has to
. function more and more actively. In order to do that, it is necessary to
have an environment where those in charge maintain enough morale and nur-
ture technology with affection.
On that point, the merits of NTT's traditional perfectionism must be greatly
demonstrated. The minuses produced by allowing competition in a free market
would exceed the pluses.
If the government authorities were thinking of the opening of NTT in terms
of volume, as with salmon and trout, they could not have been more mistaken.
The telephone is a high level technology that is going to be the new bearer
- of the information era by virtue of its connection with the computer. It
is also a clean, freely growing field that Japan must live by in the future
, as well. Japan, which constitutes a crowded information space rarely seen
in the world, must coutribute to the world in this field.
COPYRIGHT: Chuo Koronsha 1979
9400
CSO: 4105
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SCIENCE AND TECHNOLOGY .
SUPEP, CONDUCTOR POWER GENERATION, TRANSMISSION PROJECT PLANNED
Tokyo NIHON KOGYO SHIMBUN in Japanese 23 Jun 79 p 9
" [Text] The Science and Technology Agency, Metal Materials Technology and
Research Institute (Director: Toru Araki) is planning to start a practical
techriology development project in the extreme low temperature spitere, in-
cluding super conductor transmission, from 1980. It will be a long-tez~ms -
project (5-7 years) which will test produce super conductor transmission
wires and super conductor power generation equipment. It also seeks to
develop heat resistant materials for use in extreme low temperature environ-
ment and to implement standardization of construction methods and testing
methods of such materials. It is noteworthy as a comprehensive research
development project in the super low temperature sphere which is regarded
as the industry of tomor.row.
Metal Materials Technology and Research Institute has been studying th~ super
conductor materials as an extreme low temperature technology research. To
date, it has developed vanadium 3- gallium which is said to have the highest
critical magnetic force when made into a magnet and niobium 3- germanium
which is said to excel as a processable materials. Manufacturing methods
for turning the latter into tapes and multi-cor.e wires have also been per- ~
fected. ~
Currently at Tsukuba Kenkyu Gakuen Cit_y, Ibarsgi Prefecture, there is a super
conductor magnetic field generator which combines vanadium 3- gallium mag-
net with niobium 3- tin magnet and performance tests for various test pro-
duction materials are underway there.
The project, slated to start in 1980, is built on these research results and
it is an attempt to put them into practical use or to develop a system which
would substantiate its worth. In super conductor transmission research, the
plan calls for development of construction method, cooling method for trans- -
mission wires and development and utilization of peripheral materials neces-
sary to implement these methods.
With regard to transmission wires~ a method employing super thin multi-~core
wires constructed by stretching method jenshinho] and a method by which
materials processed in the form of tape and wound in spiral formation are
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being proposed.. The research in this field will investigate the respective ~ ~
construction methods and their technical possibilities. 'I'he plan is to ~
- eventually bring the matter to test production of super conductor trans- ~
mission wires. ~
f
In the meantime, with regard to super conductor power generation, niobium 3- '
germanium is expected to be employed. Niobium 3- germaniun. is relatively ~
durable even iahen processed into a thin wire. It processes well and its
critical temperature (temperature at which super conduction state is broken)
i.s a relatively high 22~K. Because of these properties, this flexible ma~
terial is to be the basis of research on development possibility of a power
generator. ~ -
In addition, construction materials and adiabatic materials metal liquid
he.lium containers or composite plastic material for strengthening metal
wires are to be test produced. Establishment of inethods for testing
such materials is also being planned. '
COPYRIGHT: Nihon Kogyo Shimbunsha, 1979
~
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11460 j
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SCIENCE AND TECHNOLOGY
MICRO-CERAMIC BA,LL MANUFACTURING TECHNOLOGY DEVELOPED
Tokyo NIHON KOGYO SHIMBUN in Japanese 26 May 79 p 9
[Excerpts~ Assistant professor Yoshiji Ozaki of Seikei Uni-
versity Engineering Department, Industrial Chemistry Section,
and others have developed a new manufacturing method for a -
"micro-ceramic ball" of milliorder to submicron order minute-
ness. A wide range of use heat resistant and chemical -
- resistant ball bearing, electron material, composite materi-
al, catalytic agent and so on is expected to arise from
the ceramic ball invention. However, there has been diffi-
culty in finding a way to mass produce homogeneous mic?-o-
cermaic balls cheapZy. The new technique may provide the
answer. At present, corundtun (a. aluminum) micro-balls
are the only,ones being manufactured but Ozaki commented
that "the method can be applied to any and all ceramic ma-
terials -=~~oxide, carbide, nitride, borid and.,so on.
The new technique skillfully employs the phenomenon of an oil drop injected
into water and agitated vigorously. This will cause the oil drop to be dis-
persed in the water and to form into minute globules. With the passage of
time, oil thus dispersed in water will gather together again and revert back
to its original form. The crux of the operation is to solidify the globules
'~efore they recongregate. In the case of corundum balls water is added to
_ dissolve aluminum isopropoxide to obtain baimite [transliteration]. By '
adding hydrochloric acid to this solution and peptizing it at 95�C (to re-
turn colloidal particles to sol), baimite sol is obtained. When this sol
is agitated in 2 ethyl hexyl alcohol, globules are produced as the two com-
ponents are like water and oil. If interfacial activatar is introduced at
the same time, the uniting tendency of globules is repr~ssed, and with pas-
sage of time, the globules become solidified in the alcohol as a result of
sol's thixotropy characteristic (disposition of liquid sol to turn into gel
when it is left alone). Left on their own the globules will sink to the
bottom of the receptacle and will change thei.r shape as globular density is
greater than that of alcohol. Thus carbon tetrachloride is added to control
the density and the globules are left suspended in liquid "marimo [trans-
~ literation]" fashion. In this s[ate, ttie moisture in the globul es is gra-
dually released into the alcohol and eventually they will acquire a~hardness
which resists self-transformation.
30
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When dry globules thus obtained are~centered at 1600�C, the objective of
corundum ball is attained. Globular diameter diminishes in size as the
baimite volume in the gel is decreased and more viole~nt the agitation,
smaller the diameter of globules. That is, globular size can freely be con-
trolled. Also, globular diameter distribution can be restricted ta a rather
narrow range. For example, the experiments verified that in most instances
the globular si~e range was between 0.1 ~ 0.3 millimeters.
Moreover, the globules thus obtained are homogeneous and not anisotropic.
It is possible to make globules with spiracles that is their construc-
tion can be porous.
It i:; said that research is under way in the electric and electronic m;ceri-
als sector which seek to turn yttriinn, iron, garnet and.'flourescent light
into small globules. And in the composite materials sector, there appears
to be a research under way which uses globular ceramics as fillers (gobs).
Thus, the new innovation will probably draw attention. _
~f~~: M
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PHOTO CAPTION; Micro-corundum balls manufactured acrording
to new method'
COPYRIGHT: Nihon Kogyo Shimbunsha, 1979
11460
CSO: 4105
f
31
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I
~
Fc~ii oi~~'iCI.AL USt~: ONI.Y
SCIENCE AND TECHNOLOGY
~ ;
~
BRIEFS
METHACOAL BY MITSUI--Tokyo (AP)--Japan's Mitsui group of industries will
develop a new liquid energy source called~methacoal made entirely from
coal, an official at Mitsui and Co. said Thursday. The official said
that methacoal, to be composed of inethanol--methyl alcohol--and coal
powder, has potentiaX as an oil-alternative energy source because its
liquid form makes it easy to transport and it generates more heat than
methanol. The plan calls for the construction of a pilot plant~and
refinement of production techniques within five yeara. Mitsui is now ~
seeking Government funds to support the pro~ect, which will cost an ~
estimated ~5 billion ($23 million), the officials said. Methacoal will ~
have a heat generating capacity of 6,000 kilocalories for every kilo- �
gram, lower than oil at 10,000 kilocalories and coal-oil mixtures at ~
8,000 kilocalories but higher than methanols 5,400 kilocaTories. How- ;
ever, it has the big advantage of using no oil, different from coal-oil '
liquids now under development in several nations, the official said.
Japan relies on imports for 99 ~ercent of its petroleum needs. [Text] ;
[Tokyo ASAHI EVENING,NEWS in English 14 Sep 79 p 9] j
. I
, 4
~
CSO: 4120 '
,
END
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