JPRS ID: 9252 USSR REPORT ENERGY

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• Original Classification: U
• Document Page Count: 115
• Document Creation Date: November 1, 2016
• Sequence Number: 24
• Content Type: REPORTS

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JPRS L/9541
11 Febr~ary 1981
- Ja an Re ort
p p
CFOUO 10/81)
,
FB~~ FOREIGN BROADCAST INFORMATION SEI~VICE
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I
NOTE '
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are transcribed or reprinted, with the original phrasing and
other characteristics retained.
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mation was summarized or extracted.
Unfamiliar names rendered phonetically or trar~sliter.ated are
enclosed in parentheses. Words or names preceded by a ques-
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JPRS L/95~1
11 February 19 81
JAPAN REPORT
(FOUO IO/81)
- CONTENTS
POLITICAL AND SUCIOLOGICAL
Editorial Looks at Japan~s Foreign Policy Aims
(Editorial; MAINICHI UAILY NEWS, 5 Jan 81) .,.,.o.ooooooooa 1
Cabinet Reshuffle Called Most Difficult Problem for Suzuki
Cabinet
(Takehiko Takaha.shi; MAIIVICHI IlAILX NEWS, 7 Jan 81) ,ooooo. 3
Liberal Democratic Party Elated Over Election Results
(Editorial; MAINICHT DAILY NEWS, 2fi Jan 81) ooo...ooooo0000 5
Politics Face Rough Going in 1981
(Takao Iwami; MAINICHI LIAILY NEWS, 21 Jan 81) .oo � o,o.a.oo 7
'YOMIURI' Criticizes Suzuki Speech
(Editorial; THE DAILY YOMIURI, 27 Jan 81)������������������ 9
Kato~s Switch to LDP Is Blow to JSP Chai~an Asukata
(Takehiko T~kahishi; MAINICHI DAILY I~EWS, 14 Jan 81) ..o... 11
Tanaka Supporters Inaugurate 'Thursday Club'
(BUSINESS JAPAN, Dec 80) ...,,,,o,....ooooooo...oooooo.ooo0 13
Tanaka Faction Further Solidified
_ (MAINI(~iI D~PiILY NEWS, 11 Jan 81) .,,.oooo,o,o,,.ooooo000000 15
- DSP Leaders' Ambitions for New, Centrist Party Called Daydream
(Raisuke Honda; THE LIAILY YOMIURI, 17 Jan 81) .......ooo..~ 17
Editorial Praises 'Wise Men1s Group'
(Editorial; THE DAILY YOMIURI, 9 Jan 81) .oo.o....o.oo.ooo. 18
Political Corruption Charged in Chiba Prefecture
(Hideo :~atsuoka; M'~INtCHI UAILY NEWS, 20 Jan 81) ...oooaoo. 20
- a - LIII - ASIA - III FOUO~
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Country Became's World's Leading Auto, Steel Producer
(BUSINESS JAPAN, D~c 80) .........oooooooooo�oo~�~�~�~~���� 22
Prime Minister's Office Poll Tests Public's Attitude on _
Diplomacy
(BUSINESS JAPAN, Dec 80) ..............oooQ..oo��o�~~~~o�~~ 23
MILITARY
Expanded Joint U.S.-Japan Maneuvers Being Planned
(BUSINESS JAPAN, Dec 80) ..........oo.oa.....o......o.oooo. 25
Weapons Export Promising But Controvessial Field
(Yoshiteru Oka, BUSINESS JAPAN, Jan 81) o..o.o.o.ooooo~~~,~~ 27
Debates To Escalate on Defense, Security Issues
(Editorial; MP~INICEiI DAILY NEWS, 6 Jan 81) .o.o.ooooooo�oo� 29
ECONOMIC
Japan's Role Increasing in International Economic Society
(Hiroshi Yoshimoto; BUSINESS JAPAN, Jan 81) ooaooooooo..ooo sl
Japan-~S:Economic Relations Report Presented
(Editorial; MAINICHI DP?ILY NEWS, 12 Jan 81) ......oooo~~ooa 33 -
Japanese Economy Forecast for FY 1931
(MAINICHI DAILY NEWS, 4 Jan 81) ....o............oooooooo�0 35
Editorial Notes Benefits of Strong Yen Tendency
(Editorial; MAIDTICHI 1~1ILY NEWS, 9 Jan 81) o....oooao���o~� 39 "
Finance Ministry's Views on Energy Policy, Its Budget Given
(ENERUGI FORAMU, Dec 80) .........ooooo~o�����~o~~~~~~�~��~ 41 _
~
Foreign Investments in ,Tapanese Securities Market Increa.sing
(BUSINESS JAPAN, Dec 80) .......ooooooooo�������~~~~~~~~~�� 45
Japan Air Lines Report Significant Increase
(Hideo Matsuoica; MAIDTICHI DAILY NEWS, 14 Jan 81) .oooooooo. 4~
Conflicting Views Noted on Proposed Revision of Banking Law
(E4itorial; MP_II~'ICHI I~ILY NEWS, 19 Jan 81) o........ a 50
Industries 5how Great Disparity in Prc~its Report
~ (BUSINESS JAPA.Iv, Jan 81) ...........o..oo.����~����o�,~~~~~ 52
Conflicts Accompany Internationalization of ~ipping
(Susumu Ono, BUSIIZESS JAPAN, Jan 81) ........oao.ooooa~o~o~ 5~
Okita States Free Trade Principle May Require Limi.ts
_ (Yoshikazu Ishizuka.; THE JA.PAN TIMES, 19 Jan 81) , o 0 0 0 0 o a o. 57
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C'hanging Policies Affect Financial Institutions
(Hiroshi Yonesato; BUSINESS JAPAN, Jan 81) ............ooo.. 59 ~
MITI, MF Clash Over Tax Cut for Energy Investment in 1981
(NIKKAN KOGYO SHIMBUN, 8 Dec 80) ......ooo ..............ooo0 61
Chryslex Called Liability for Mitsubishi -
~ (Kentaro Koshiba; MAINICHI I~AILY NEWS, 20 Jan 81) ,,..,.ooo0 63
Bridges Reflect Early Government Policies
(Minoru Hirota; BUSINESS JAPAN, Jan 81) oo,oooooooo~ooooo000 65
Tasks, Goals of New Energy Comp.�ehe~sive Developm~ent Organization
(ENERUGI FORAMU, 26 Dec 80) ,.........oooo.oooooooooaoo.o.o0 67
SCIENCE AND TE(~NOLOGY
Wide Energy-Sourc_e Svrza.d Essential For Future
(Shozo Hochi; BUSINESS JAPAN, Jan 81) ooo,o.,.ooaooooo000000 76
Giant Steel Industry Claims Top World Position
(Isao Izawa; BUSINESS JAPAN, Jan 81) .,o.o.ooooo000000000000
a Acoustic Microscope Opens New Fields to Analysis
(BU~INESS JAPAN, Jan 81) ,.o,...oooooooooo.ooooo000000oooooa 83
Fuji Film Makes Use of Am~orphous Silicon Powder
(BUSINESS JAPAN, Jan 81) ....oooooo.oooaoo.....o.ooaooooo000 85
Nickel-Zinc Battery Developed for Electric Cars
_ (NIHON KOGYO SHIMBUN, 15 Dec 80) ......ooooo000oooooa.oo.oo0 88 _
Housing Starts Determine Demand for Galvanized Sheets
(Shigeo Yabe; BUSINESS JAPAN, Jan 81) ..,oooooooo..oooooooo. 90
Japan's Small Tools Play Big Role in Indust~ial Expansion
(Kunio Owada; BUSINESS JAPAN, Jan 81) oo.o,.oooo.ooooo000000 93
Machine Tools Support Industrial Achievements
(Naoyuki Sato; BUSINESS JAPAN, Jan 81) doa.......oooooo.o..~ 95
Industrial Diam~nds Essential for High Precision Tools
(Haruo Suzuki; BUSINESS JAPAN, Jan 81) � aoo,ooooooooooaooo. 99
Mechanized Cutter Industry Girds Itse3.f for Ha.id Times Ahead
' (Suzuo Watanabe; BUSINESS JAPAN, Jan 81) oo.,o.oo,o..oo..~o0 100
~
MITI Prepares Projection of Plant, Equipment Investment
~ (BUSINESS JA1'AN, Jan 81) o00000oooooaooooo000000000000000000 102
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Stainless Steel Producer Sets Goals for '80s
(Fujio Tsukamoto; BUSI;JESS JAPAN, Jan 81) ooo.......a..o~o 104
Jagan's Cemented Carbide Tools Contribute t~ Worldwide Industrial
Development
(Shiro Ueda; BUSINESS JAPAN, Jan 81) ooooo..o�����o~~~~~~~ 108
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pOLITICAL AND SOCIOLOGICr1L
- EDITORIAL LOOKS AT J~,PAN' S FOREIGN POLICY AI1LS
Tokyo MAINICHI DAILY NE4iS in English 5 Jan 81 p 2
[Editorial: "Japan's Foreign Policy"j
_ [TextJ
The New Year has been ushered in with a somber -
tone. Some 85,000 Soviet troops remain in
Afghanistan. 52 American hostages are still in Iran,
and no end is in sigltt in the Iran-Iraq war. The
situation in the Middle East. the powder keg of the
world, and in Poland may deal a final blow to the
detente which has beQn seriously harmed by the
Soviet occupation of Afghanistan.
A new change is taking place in such a.ponderous
world. On Jan. 20, the new American administration
under Ronald Reagan will be inaugurated. American
voters chose Reagan with the expectation that the
new president will restore a"strong America."
Reagan called for the reconstruction of the American
economy through t~e people's vigor and the
siabilization of the international situation through the
strengthening of the American military capability
against the Soviet Union.
In the new American administration, we can anti-
cipate two basic fareign policy lines: economic
diplomacy based on the cooperative competition of
the Western industrialized nations and diplomacy
directed toward the Soviet Union. We do not see any
basic difference between the policies ~�~lowed by
outgoing President Jimmy Carter z those of _
President-elect Reagan.
One difference is in their approach to the Soviet
Union. In particular, Reagan's policy will be based on
the belief that the Soviet Union is the source of a ~
threat to t~.S. security and that U.S. military
superiority i~ therefore indispensable. This is in
contrast with Carter's policy line which, as was seen
in the Afghanistan problems, tried to treat symptoms
as they arose and callec~ for attention.
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From the American viewpoint, the most im-
portant matter in the relationship with Moscow is the
Soviet military power. Some American afficials view
that the difference between the Soviet-led Warsaw
Pact forces and the NATO forces has widened,
resulting in heightened tension in Europe, while the
invasion of Afghanistan is threatening the stability ~n
the neighboring Middle Eastern and Southwest Asian
nations. Everyone knows that the Middle East is the �
oil supply source for Japan and Western Europe, and
its instability may become a:natter of life or death to
the Western nations.
Well aware of this, ~he Carter administration
tried to strengthen the NATO forces and prepare
"Rapid Deployment Forces" to cope with any con-
_ tinRency in the M;ddle East. Reagan is expected to
step up this policy and will place top priority on the
improvement of U.S. strategic nuclear capability.
What will be the Soviet reaction to the new
American policy? Some people believe that the Soviet
Union desires to have talks with the U.S. for the im-
prnvement oE relati4ns because of its domestic
situation. ~
We do not expect that the Reagan administration
would easily accept a Soviet proposal for talks,
because American officials know that a prominent
cause of the Carter administration's failure in its
Soviet policy was attributable to the disarray among
the Western allies and the United States can no longer
bear heavy military expenditures. %
Accordingly, the new U.S. administration will
call for uni>.y among its allies. Talks between Reagan
and Prime Minister Zenko Suzuki, passibly in May, or
the Western summit conference in Ottawa in July will
offer good opportunities for that purpose.
How will Japan cope with the expected U.S.
demand for the stepping up of its defense capability''
We cannot find a clear-cut answer to that question.
We must remember, however, that Japan must look
at the world thrnugh its own eyes and assert its role in
- contributing to the maintenance of world peace and
prosperity by its own code of conduct.
Japan must further improve its relations with
China which has stepped up its rapprochement with
the Western bloc, extend its aid to stabilize some
re~ons. and play a definite rale in cheching the
possible cold war trend in the Reagan diplomacy.
_ Japan now sits among the nonpermanent member~ of
the United Nations Security Corancil and will be tested
in ~ts role to become a power which will contribute to
real world stability.
COPYRIGHT : Nlainichi Daily News , 1981
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POLITICAL AND SOCIOLOGICAL
CABINET RESHUFFLE CALLED MOST L'IrFICULT PROBLEM FOR SUZUKI CABINET
Tokyo MAINICHI DAILY NEWS in English 7 Jan 81 p 4
[article by Takehiko Takahashi]
[Text]
~ On New Y'ear's Day. former LDP administration will be fiscal 1981, which will be taken,
Prime ~tinister Kakuei Tanaka grasped and the administration up by the ordinary Diet session,
- received many visitors. This stabilized by that leadership. calls for a big increase ot taxes.
testifies to the political strength The Suzuld adminlstration T~ ~ a point on which the
- that Tanaka still possesses. w a s b o r a t h r o u g h t h e oPP~ition parties will con-
Why is it that so many visiWrs. centrate vehement attacks.
including incumbent cabinet cooperation o[ the Suzuki pIIOther important problem is
ministers, called at the home of faction, Fukuda factfon and ~en Prime Minister $uauki
Tanaka factioa. The Suzuki
a person who is a de(endant in a will visit the United States.
c r i m i n a I c a s e i n v o 1 v i n g tactlon taces complex inner ~~f Cabinet Secretary Kiichi
problems, with ~iITI Minisier
Lockheed paS�otts? Rokusuke Tanaka factioa w ~iY~wa is taking a cautious
The reason has a connection attitude, but it has been
form his own factfoa. The at-
with the tart that toward the titude of the Fukuda [action is ~Po~ ~at the United States
end of last year, Tokusaburo desires to hold a Japanese-
Kosaka and others joined the t� cooperate while quietly ~erican summit meeting as
Tanaka faction cor to be more Watching the movements of the ~p ~~ibte after the
specific, the Thursday Club Suzutci administration. ~uguration of Fresident-elect -
which has Susumu Nikaido. Under axh a situation, the g~~d Reagan.
chairman of the E.DP Ezecutive Tanaka [actiGn alooe is actively
Council. as its representative? ~~~oring to expand its in-
and the Ta.naka faction became tluence. The Suzuki ad- Summit
ministration daes not fmd this
a huge faction with over 100 ~~e by any means. This is Then there is the summi!
members. because Prime Mlnisier Suzuld meeting ot the industrially
Uporf joining the Tanaka ~~~ble to carry out advanced nattons. ~ pon
taction. Kosaka said. "the ~y ~p~~~ ~ifts or policies recollecting the past, the Miki,
political situatioa is stabilized =~ntraoPq'to the wishes of the Fuguda and Ohira cabinets all
due to the comfortable majority Tanaka faction. This. in tact, is began to totter atter the
that the Liberal-Democratic what the Tanaka taction is respective summit meetings.
Party dolds. The LDP ad- aiming at. Although this may be a mpre
ministration will remain stable coincidence, there is a need tor
throu the exis~eace of a Prime Minister Suzuici's
(actionp that posses.ses over� schedule this year is filled with the Suzuki cabinet to be careful.
w h e 1 m i n g n u m e r i c a 1 many important events. ~ One reason for the foregoing
superiority." Following his visit to ASEAN phenomenon is a matter of
_ What was meant by this is ~~s from Jan: 8, it will be timing. It is the ~ustomary
that by increasing the number neces=a~'Y ,for him to cope period for a cabinet reshuffle
of Tanaka faction members in s~~f~Y me ordinary and a c6ange of party
the future, the leadership of the Diet session. The budget tor executives.
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Tcward the end of 1980, Prime T4e Tanaka faction, which
. Minister Suzuki conducted a possesses the lazgest numder of
preas conterence intendeci for stocks ~ members) in the
publicatlon ia the aewspapers Liberal-Democratic Party. is
on New Year's Day. AE that bound to demand the number ot
time, Suzuki declared that he cabinet members correspond-
was not thWcing at all about a ing to its "stock holdings." It
cabinet rest~uffle. This has been this is carried out, nearly one-
the same attitude adopted by ?hud ot the cabinet posts must
prime ministers in the past� ~ be allotted to the Tanaka f ac-
Nevertheless, the reality has tion.
been dit[erent. As soon as the The other. factlons will un-
ordinary Diet session e~ds and d o u D t e d I y o p p o s e t h i s
the summit meriing is over. the vigorously. Prime Minister
problems ot a cabinet reshuffle Suzuki will tace great dltficulty
and party personnei invariably ~~?8 adjustmeats. But the
- ~ come to the tore. TanaYa taction will adt~re w
If Prime ;Kinister Suzuki i~ ~~5 even it other
attempts to avoid this, criticism dissatlsfied tactioas are driven
is bound to rise that "as in the ~~0 ~p�
case ot the Miki cabinet, this is One of the problems here is
an administration in which the the 6andling of Executive
prime minister lacks the Council Chaircnan Nikaido. The
- leadership even to reshutfle the TanaYa faction may demand
cabinet." that Nikaido be ~ven the post of
On th: otber hand, if Suzuki deputy prime minister. If so,
tries to carry out changes of the Y~~~ro Nakasone and Toshio
cabinet and party personnel. Komoto, who are in the pasition
the problem that will arise is the of deputy prime ministers at the
movement of the Tanaka fac- Present time, will be torced to
tton which has increased its put up resistance.
membership. - An LDP faction waY~ ~ P~ over
has been described as "a joint- the peak ot a cabinet reshuffle,
s t o c k c o r p o r a t i o n t h a t which is forecast for July-
d i s t r i b u t e s m o n e y a n d August, is likely to become the
position." most difticult problem faced by
the Suzulri cabinet. , .
COPYRIGHT: Kainichi Daily News, 1981
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POLITICAI. AND SOCIOLOGICAL
LIBERAL DF.MOCRATIC PARTY EIATED OVER ELECTION RESULTS
Tokyo MA~NICHI OAILY NEWS in English 26 Jan S1 p 2
~Editorial: "Overconfident LDP"~
- (Text] -
The Liberal-Democratic Party is puffed up with
- pride, backed by its numerical strength in the
national Diet, and its campaign policy charting the
future course of the nation announced at the regular
party conventit,n on Jan. 23 smacks of self-conceit.
Nobody leveled a serious questian at the an-
nouncement at the convention which was nothing
more than a festive rally, reflecting an air of over- -
confidence prevailing in the party.
The dual elections for both Houses held last June ~
resulted in the victory for the LDP, reversing the tide
in domestic politics. !n this regard, a soul-searching
_ analysis of the election results and subsequent
changes in the poli~ical climate should have been the
foremost issue at the convention. The campaign _
policy gointed out that the healthy political con-
sciousness of the nation, which favored a comeback to
_ tradition-bound conservatism, paved the way for the ~
LDP's smashing victory. Their analysis, however, .
does not sound right. :
The trend toward conservatism is based on the
realistic sent~r.ient of the people calling for medium-
scale economic grawth. This should not be interpreted
- as indicative of the people's positive support af the
LDP or a change in the people's political awareness.
According to a public opuuon survey conducted .
_ recently by the Mainichi Newspapers, only 8 percent
said that the LDP had r~mained in power for so long
because of its excellent poli~ics. On the other hand, _
more than half of the respondenfs declared that the ~
lacx of strength on the part of the opposition parties
resulted in an LDP win.
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The LDP victory was due to the passive support
of th~ p~ople resulting from errors by its rivals. The
survey also revealed that the people are rather
uneasy about ~he m~ajority strength of the LUP, _
associating the party with such bad images as "tax
increases" and "corruption in the p~litical arena." _
The consensus of most people is th~at under the
prevailing circumstances they had no choice but to
- "pick the Liberal-Democrats." With its numerical
strength, the campaign policy of the LDP appears
unusually strong on such iss~es as revision of the
Coastitution, defense, atomic power plant develop-
ment and education. They seem to be in a hurry to
realize these issues while in power.
We are aot against their enthusiastic manner of
tackling these problems, but it must be pointed out
that they are too confident of their ability.
COPYRIGHT : MAINI CHI IY~ILY NEWS 1981
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POLITICAL AND SOCIOLOGICAL
POLITICS FACE ROUGH GOING IN 1981
Tokyo MAINICHI DAILY NEWS in English 21 Jan 81 p 5
~Article by Takao Iwami~
~Text~
Msny une.cpect.�.d events occurred In At a glance, the I.DP government,
Japanese domestic politics in the 1970s. which survived some difficult situations
The trend is likely to continue in the in the latter hait of the 19i0s, seems able
- 1980s. to coatinue enjoying one-party control
In May 1980, the government ot Prime due to its numerical strength in the Dtet.
AZinister Masayoshi Ohira wa~S toppled Some political observers believe that the
by a noncontidence motion sponsored by LDP has fully regained its stren~th.
opposition parties. 'I'he passage of the coinciding wi~h the worldwide tendency
_ motion became possible by the absence toward oa expansion of conservative _
of several dissident Liberal�Democrats. influence� _
As a r~sult, for the firsi time in Nevertheless, judging from what is
Japanese political history, elections of ~8 Place inside the party, the LDP
the members of both Houses ot the Diet governmeat under Prime Minister
took place on the same day-June 22. Suzula w[ll not necessarily be able to
During the ei~ction zampaign, Otura ~loY its stability. It can maintain
died. numerical strength because ao election
The election resutts showed that voters ~ e~a for Diet members in 1981 but
did not support the opposition parties' S~ntee that such a
call for the formation ot a coalition favorable situation would continue in the
government to replace the LDP govern- future.
ment. The government party w~on a Tbe ~~~'a~ve tendency is an in-
landslide victory and the opposition dication that voters do not want to
parties, excce~~pt for the mode.Tate New ~an8e ~ current order rapidly. The
Liberal Club, suffered a consic~erabte ~ndency cannot be interpreted however,
setback "One strong and six weak ~~~~~tion of the voters' active
parties" emerged on the Japanese support of the government party.
- political map. Staunch supporters of the LDP single
party government account for about 30
Zenko Suzuki fo;~med a new cabinet. p~nt oi the total voters. ~The current
"Zenko who?" was a common question ~~~ty of ~~nrative government
asked by foreign political leaders. But y~ a~it ot 4he weal~ess of the op-
Prime blinister Suzuki skillfully p~s~tion parties. In otl~er words, the
- managed the extraordinary Diet session S~~ity ~s attained through a structural
in autumn .and corupiled a draft budget W~~ of the political world. _
for fiscal 1981 with litUe diEficulty. Some A recent phenomecwn which has al-
peoFle~said that Suzulti's leadership was tracted political observers is the
inadequate but, in spite of that, he made emergence of cracgs in the "stable"
a smooth start. party. Until the death af for~_ ~r Prime
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Minist~r Ohira, the Japanese political n~~~~ ~~pg~ of the club now
- map was distinguished by two colors- at 101, comprising members of
the factional alliance Uetween former g~ of the Diet. Japanese
Pr[me Minister Kakuei Tanaka and pou~c~ circles, including opposition
' Ohira, on the one hand. and that between p~i~, ~ carefuily watching the ac-
tormer Prime Ministers Takeo ~ikuda tivities of the largest and strongest
and Takeo htilci, on the other. faction in the govecnmeni party.
Since the death of Ohira, the LDP p~e Minister Suzuki, in his New
members. weary of factional struggles.. y~ p~ �onference, said that the
- bave lived under a relative lull during the formation of tbe new club was "not
past six months. A change appeared ~l~m~~~ ~~cating his displeasure
toward the end of December. with the expansionism of the Tanaka
A remarkable phenomenon was the faction.
outright expansionist tactics among V~re must attach signiEicance to the fact
factions. The faction headed by former that Suzufd, who had eajoyed support
Ptime Minister Takana, who was. ~~e T~~ ~action, was compelled
prosecuted in the Lockheed scandal case, to make such a critical comment.
has exerted considerable influence in the Ta~ ~~~voriag by every means
party tor about siz years since the ~~me ~ p~e minister of Japan.
retirement ot Tanaka from the highest M~~ile, the LDP a~ust face such
position of the Japanese government, ~~py~ p~~e~s as the possittte revision
although its activities have remained of ~ war-renouncing Codstitution,
somewhat dormant. � expansion of the defense capability, and
Tanaka is reportedlY determined to ~~ctioa of t6e deficit-ridden state
regain the premiership. He has openly finances.
resumed activities, apparently W aftain ~ gOVe~ept party members must
his reported ambition. make a choice oa these pcoblems and,
In October last year, he reorganized together with this, the possibllity exists
his faction, giving it a n~w name of ot a polorization among the members-
~�Thursdaq Club" with Susumu Nikaido; between the pro-Tanaka and anti-Tanaka
former chief cabinet secretary under the members.
Tanaka cabinet and now the LDP It is too early to predict anythinB at
Executive Council chairman, assuming pe~eseat. I have heard some Political
the post of its chairman as a"surrogate" leaders unanim,ously express their
of Taaaka himself. anxiety that they will experience "rough
Tokusaburo Kosaka, businessman- ~g ~ the Iatter halt of this year.
turned-politician and fonuer director ~y ~ av~are of the start of.factional
general of the Economic Planning ~~es as an undercurrent. T6e year
Agency, j owed the club. The total 1981 is bound to be stormy.
- COPyRIGHT : MAITtICHI DAILY NEWS 1981
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POLITICAL AND SOCIOLOGICAL
'YOMIURI' CRITICIZES SUZUKI SPEEQi
Tokyo T~ DAILY YOMIURI in English 27 Jan 81 p 2
~Editorial: "The Insipid Policy Speech"]
~Text)
Prime Minister Suzuki's speech to the Diet was
,monotonous, boring and inaipid like thoae of his pre-
decessors except when he stressed Japan's respon-
sibilities for world peace. , .
Suznki went into - unnecessary details of policy
which would have been better left to respective min-
isteis involved with financial and economic affairs.
_ Tnatead he should have set forth foreefully~ his politi-
cal philosophy. . .
I~owever, we were imprPsaed when he stated that
Japan had responsibilities to perform for world peace
and asked the people to bear an increased financial
burden to fu1fiI1 Japan's duties. Nobody can object
to Japan 'taking an assertive political role for world
peace nor to the coet of this.
~'ails 'To Clarify Japan's Roles
However, the prime minister failed to make clear
just what role. or roles Japan should perform, and
this left the impression that he and the nation lacked
determination. After all Japan for many years has
steered clear of a political tole, and t,he idea now
seems to plunge us toward the unknown.
But with the Soviet invasion of Afghanistan and
the hostage crisis in Iran, Japan abandoned its "omni-
directional foreign.~ policy" with its falee sense of
security. However, where do we go from here? Of
course, Japan must denounce acts which disturb world
peace even when this means economic losaes.
And Japan must expand its economic cooperation.
The prime minister haa promiaed in the aext five
yeara to double economic aid. Hawever, this ie not
_ enough. .
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Japan must perform more fc+rcibly as a nonperrna-
nent memb~er of the LTN 5ecurity Council and must
. ~ be especially active in working for peace and ~atability
in Aaia. JaQan rnuat speak out atrongly in the cause
of peace.
~ Japan can find a role to play in easing confronta-
tfon and preventing armed conflicts, even though it .
cannot adopt a military role. It should. demand dis-
armament in a� louder voi~e and we wonder why Su-
zuki made no mention of this in his apeech.
Adjust Japan-L~S Reletiona
The most important diplomatic task for Japan
this year is to adjust Japaa-US relations, and we
hope Suzuki ~aaill be. able to visit Was+hington next
April to further this procesa. Consultation with the
L'S ia neceasary because we depend on the US for
the greater part of our security. But Japan must
make it very clear that what it can do in defense is
limited.
What the two nations can do quickly to improve
relations ia follow the advice of the Wise Me~'s
~Toup and reopen the joint conferences of ministers
fo reduce trade friction.
(January 27)
COPYRIGHT: THE DAILY YOMIURI 1981
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POLITICAL AND SOCIOLOGICAL
KATO'S SWITCH TO LDP I:' BLOW TO JSP CHAIRMAN ASUKATA
Tokyo MAINICHI IIAILY NEWS in English 14 Jan 81 p 4
["Nagatacho Doings" colu~ by Takehiko Takahishi: "'Kato Shock' For JSP Chairman
P_s uka ta"~
- ~Text)
A~~shocking development" IA last year's House of
for the Japan Socialist PartY ~cillors election, however,
has occurred. Former Diet Ka~ w~ deteated. Jusi thea
member Kiyomasa K~ato, once ' Chiet Toyama of Tokyo's
considered to be a dYed-in-th~ B~,o W~ w~ talcen by `
wool JSP member. is becoming death. Kato decided to become
a candidate under Liberal- a c~~~ ~ the election tar
Democratic Pariy colors itw the ~ nezt Bunkyo Ward chief. �
electioa tor.ttsee chiei ot Chiyoda To~,~ Buak},o W~ ~ a
Ward, Tokyo. district with strong con-
KaW is a man in the direct servative influence. Many of
line from tbe late Inejiro ~~Ple supporting Kato did
Asanuma; ~ former JSP chair-
man, After Asanuma's tragic so not because he was a JSP
a;sassinatioa at Hibiya Public member but because of his
Hall, his widow ran ance in his character. Thus many of those
place for the. House of Kato suPPo~~ ~ election
Re~presentatives but the Diet Were P~PIe of the consen'ative
seat was takea over by Kato ~p'
Tbe consetvatives are a_Lso in
after that. the uverwhelmin8 majarity in
Unfortunately tor Kato, at the ~~yo ~y~ ~~bly.
time when 6e was deteated in AccordinglY, ii the ward ebiet
one election, the first electoral ~re to carry out his
.dlstrict ot Tokyo was decided as a~~~ation smoottily. the
Chairman ~sukata's con-' ~;peration ot tbe conservative
stituency ( Asukata did not have ~{luence Sn the ward assembly
a Diet seat thefl). AlthouSh ~~o~~, In order to become
KaW had been planning a aew ~ ward chief, it became
bid W recover that Diet sea~ it ~~ry for Kato to lean
became nece.ssary to Yield that ~w~ ~e LDP.
constituency .t~~ the party At ~ time, the LDP was
chairman. A promise was made l~~g for a oandidate to
then thnt he would be supported e~~hon tor
_ as a candidate from the Tokyo T~,o~s ~yoda Ward c6ief.
tocal constiwency in the Ho~se ~ is where Kato eater~d the
ofCouncillorselection. picture. He was accepted at.
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ance. Talks were held by LDP According to Asukata, �I tust and Democratic Soclalist Party
Secretary Genarai Yoshfo~ iieard about Kato from S6ogo are .the government parties,:
Sakurau~h~ and Kato. Today Ogi, chairman of the JSP's and the JSP is the opposition.
Kato has become the LDP's T o k y o b e t r o p o 1 i t a n A Tokyo gubernatorial
of tlcial candidate. ' F e d e r a t i o n. T h e T o k y o election will take place this'
The Japan Socialist Party tederation says that it is unable year. This is not locked upon as
was ~eatly takea aback. [n the to fathom KaW's true in- a local election. It is being
last House ot Representatives tentioas. Ogi is searching for watched with close attention as
election, Kato campaigned Kata but hasn't been able to tellinB t6e risinB t~B
activelyforChairmanAsukata. mecthimasYe~" fortunes of the different
For C4airman Asitkkata, the In regard to this, the criticism political parties. -
~~Kato voters" ( votes by people has arisen that "Karu has held a But betore that, an erstwtiile -
personally triendly with Kato p~ss conterence and has also JSP figure is running as an LUP
and having no rnnnectioa with met the I,,Dp secretary general. ~~e ~tion for the
either JSP or Asuka!al are Tn say~ that~ the JSP alone is ~Y~~ w~ ~ef. This is a
very important in aa election. unable to meet him is not an big blow to the Japan Socialist
For Kato to have gone over to expianation Wat the public wiU Party.
the LDP means tbat Asukata- . There was a time when the
suttered a tremendous loss in JSP Secretary General JSP was called "a political
Bunkyo Ward. . . . Shizmea Tagaya seems to be party of the cities." This is ra
eva~ug tt~e issue: tor he says. longer so. Even in the big cities,
,11Qeeting Av0lded ~ "I had returned to Kyus6u and tbe couservative influence is
rooted and its stren is
since I was away from To{ryo, I
At present Kato is avoiding don't k~tow exactly ~thaf is mounting, as testified to by -
meetings �with Chairman ha~~g,~~ Kato'saction.
Asukata and JSP executives. At q~ ~e time the Japan The blow ~is particularly
the JSP's first Executive ~~~t p~y experienced the s~vere tor JSP Chairman
Comm[ttee meeting ot the year. ,~Minobe as Tokyo Governor Asukata, sinc~. he was the one
held on Jan. 8, "Kato" was p~~~ refoemists' Dag who took o~ er Kato's former
naturally taken up as a big f 1 e w o v e r t h e T o k y o constituency.
problem. . � metropoUtan oftice. Today,
with Shtmichi Suwld as Tokyo's ~~~ter is an ad viser to
governor, t6e ~Liberal- ~e Maiuichi lYewspapers and
Democratic,. Pazty, Komeito formerchiefeditorial writerl.
COPYRIGHT: MAINICHI DAILY NEWS 1981
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POLiTICAL AND SOCIOLOGICAL
TANAKA SUPPORTERS INAUGURATE 'THURSIaAY CLUB'
- Tokyo BUSINE~S JA.PAN in English Dec 80 pp 14, 15
rText~
A total of 93 Diet members of the ~r(~ter, as Tanaka proposed, but at
Kakuei Tanaka faction of the ruling an early stage of the negotiations,
Liberal-Democratic Party inaugurated Noboru Takeshita, Shin Kanamaru and
a group named the Thursday Club on ~a~� who are pro-Euchi Nishimura,
October 23. Susumu N~caido, chair- a veteran LDP member who is the
man of the LDP's Executive Board, intra-factional rival to Tanaka, showed
who has been known as Tanaka's a reluctance to accept Tanaka's pro-
right�hand man, was appoinfed presi- posal. Instead, they showed strong
dent of the Club. He leads the faction support for Toshio Komoto, now
on behalf of the former prime minis- director-general of the Economic Plui-
ter, now an independent, who is a nin A enc .
defendent in the Lockheed payoff The Diet elections in June resulted
trial. Nikaido was once alleged to be ~ a victory for the Tanaka group
- the "high-ranking `gray' govemment vvithin the faction, with the defectors
o.`ficial" in the payoff scandal. even losing their leader Nishimura's
Kakuei Tanaka himself is listed seat in the Diet. But the victory over
among the members of the Club. the Nishimura group was not enough
Although he has avoided open political for Tanaka to for~ve and forget the
activities since the payoff scandal "rebellion" of the praNishimura
emerged, many feel that his member- ~~ers at an early stage when they
ship in the group is a sure sign of his recommended their own candidate for
move toward rejoining the LDP. the LDP chairmanship.
The Thursday Club's inauguration Now that Nishimura has failed to
is significant. First, there is Nikaido's be reelected in the Diet, Tanaka appar-
appointment to the Club presidency.
Once termed within the LDP as "the endy considers it an opportune time
Tanaka Corps," the T'anaka faction to solidify the faction by having his
boasted of ironbound unity among its right-hand man, Nikaido, take over the
members; yet their unity was impaired leadership. Consequendy, the Tanaka
and internal struggles came to the faction is getting ready to present
surface on the occasion of recom- Nikaido as a candidate for the LDP
mending a candidate for the party presidency should current Suzuki
chairmanship and subsequendy prime administration begin to falter for some
minister, at the sudden death of Prime re~son. Thus the LDP has anuther
- Minister Masayoshi Ohira. Nikaido and strong contender for the top national
Tanaka's other direct followers uncon- position in addition to Toshio Komoto
ditionally supported Zenko Suzuki, and Yasuhiro Nakasune.
the present LDP president and Prime Another point that should be noted
at the Thunday Club s inauguradon is
, ~
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the membership of Tanaka himself, a the stage for a retrial in the higher
defendant in the Lockheed trial. Al- courts as early as possible. Perhaps he
though Nikaido explains that "it's not feels that at a trial before the Supreme
at all unusual for Mr. Tanaka to have Court he could possibly be acquitted.
joined the Club, a social and friendship There is also the rumor that he expects
organization which accepts anyone to be granted amnesty by a special
wishing to join," it is clear to political Cabinet order after being judged guilty
observers that the birth of the Club at the fust trial. -
signifies that Tanaka has started to What impact these new moves by
move toward being reinstated in the fo~er Prime Min:ster Tanaka; who
LDP, perhaps in an attempt to bring a partically launched the Suzuki regime,
more favorable atmosphere to the arill have on the over�all LDP which
Lockheed hearings. ~ appears to have secured stability since _
Recendy, the Tanaka facdon an- its overwhelming victory in the recent
nounced its strong wish for the earliest
= possible conclusian of a court trial for Diet elections? It ~.an be said that
Tanaka. The announcement has led Japanese politics in the coming year
observers to speculate that Tanaka, will develop on the ~asis of moves by
already prepared for guilty verdict at the "Shogun behind-the�scene."
the ~rst trial now in progress, is setting
COPYRIGHT: Nikkan Kogyo Shimbunsha 1980
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POLITICAL AND SOCIOLOGICAL
TANAICA FACTION FURTHER SOLIDIFIED
Tokyo MAINICE:I DAI1~Y NEWS in English 11 Jan 81 p 1
~Text~
Former Prime ~Viinisfer As a result, the membership
Kakuei Tanaka's stronghold of the Tanaka faction now totals
within. the Liberal-Democratic 101 - 62 in the Hoase of
- Partv. is becoming more and g~~ntatives and 39 in the
more solid. as his fa~tion, the House ot Councillors. It has
largPSt in the Libera!- ~~e ~e first faction to
Democratic Party fLDP) has have more than 100 members
enlisted aew membeis frnm S~~ the Sato faction or-
maverick and conservative ~t~~ by the ]ate Prime
sectors. + ~inister Eisaku Sato, forn~er
For aewcomers to the Tanaka boss of Taaaka. In ~addition,
faction the fact that Tanaka is Nikaido says he is tinding a
in the dock, involved in the Au~nber ot potentlal Tanaka
Lockheed payoft scandal, does faction members in ot6er
not seem to be ot seric~us con- factions. _
cern. Enrollment in ttsee faction ~xplaining their motive tor
means better access to cabinet parx~cipation in the Tanaka
~osts and more ample election factioa, the newcomers say
- money than in the case of other ~ey were attracted by the
factions. personality of Kakuei Tanaka.
.Last year-end, seven Diet Tokusaburo Kosaka, an in-
members, six of them LDP ~~n~~ ~p member and one
members of the House of of the newc~mers to the Tanaka
Representatives and a New faction, declares that the ever
Liberal Club member in the fl~~ating world was making it'
House of Councillors, were ~~ry for the Tory party to
admitied to the Thursday Club, faster its own firni stabilizing
a Tanaka tactioa group. fo~, and the Tanaka faction
Susumu Nikaido, chairman of ~~~e a pivotal role in
the LDP Executive Council, ~t,
heads the club. Tanaha left the Other factional members
- LDP and his taction, assuming ~y ~ow ~"~~S" ot the
responsibility for his in- Tanaka factioa. The general
volvement in the scandal. But i~g politicai arena is
there are few to believe that ~at among LDP tactions, the
Tanaka is not a~ngpin of the Tan~y faction posSesses the
club, � best moqey backing for
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members and the best team- is sending a shcek wave through
work to help each other win other LDP factions, even to the
elections. point where a new round of
Also, the powerful say of the factional contests for enrolling
Tanaka taction in cabinet ~W ~embe~ ~ likely to start.
formation is ~:~ell known. There What is emphaticaAy pointed
is a case ia~-which a middle out is the impact of the ex- -
echelon LDP member quickly p~~g Tanaka faction army
obtalned a cabinet post after he . on the 19~i election ot the LDP
joined the Tanaka faction. presidenk In this connection,
The faction.'s growiag the factions of Yasuhiro Naka-
membership wiIl coatribute ~d Toshio 'Komoto are ~
greatly in solidifying. its ~d p~~~ bazd to
position as a LDP kingmaker. catch up with the expanding
On the other hand, the Tanaga factioa ~
enlazged Tanaka faction may Factional reactions to the
encounter internal tronbie in recent Tanaha faction develop-
the distribution of cabinet posts ments are not limited to these
allotted ?o it. To the "original" rival factions. Critical views of
Tanaka faction members, the the T~naka faction are being
appearance ot the newcomers heazd from even in the Suzuki
means a slimmer chance oti taction led by Prime Minister
becoming a Cabinet minister. Zeako Suzuki, an ally of Tanaka
Kosaka's joining the factioa and an advocate ot "politics of ~
may also add fuel to the harmony."
leadersY:~p debate. Already, the ap~t from political con-
Tanaka faction has Ganri siderations, the criticism may
Yamashifa and Noboru Tak~ ~~~~n, ~ Suzuki faction
shita as the likely next- were recently com-
generation leader for the fac- ~~~rye a scene
tion. Kosaka's presence is illustrating who is actually the
expected to complicate the post- ~p po~r holder in the LDP:
Tanaka race. Tanaica received more New
Naturally, ~ the emergence of Year callers than Suzuki.
the bigger Tanaka faction
COPYRIGHT: MAIDIICHI DAILY NEWS 1981
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POLITICAL AND SOCIOLOGICAL
DSP LEADERS' AMBITIONS FOR NEW, CENTRIST PARTY CALLED DAYDREAM
Tokyo THE DAILY YOhIIURI in English 17 Jan 81 p 3
- ("Political Beat" column by Raisuke Honda: "DSP`s Day Dream"~
[ Text ] The leadershlp of the Democratio-So- time nsed to maneuver actively, in an at=
cialist Psrty (DSP) is busy preparing for tempt to organize a coalition government
the forthcoming party convention, report- comprlsing the Ltberal-Democratic Pazty
edly with the vteW of a"blg leap forward" (LDp> and middle-oi-the-road opposition
toward the goel of creating a new ceatrist parties.
party by rallying moderate forces among ~e scheme availlng of the LDP's rawr-
oppositton parties. thin maiority in the Diet, however, came
The coming convention schednled to ~ naught following the conservative par-
start on February 18 will most likely re- ty's landslide vlcbory in the "twin" Diet
elect party Chairman Ryosaku 3asaki and electiotts last year.
party Secretary-(3eneral Saburo Tsuka- . According to his aides, Kasuga's new
- moto for thelr third conse~utive ternn. ~~ai in favor of JSP rlght-avingers
ffigh on the agenda wlll be the party.'s ~~~~s he now has returned to the
action policy for 1981, the draft of whtch ~~on he had taken eaflier over the
calls for all DSP members to make renewed new pastY issue.
eliorts to unite middle-of-the-mad forces ~uga has even said: "At least 20 oi
in the oppoaition camp. ~e ~~mbent JSP Dietmen would be cer-
The D3P leaders' amuitlon for a new,
large-scaIe cen~rist party, however, seem~ ~n to join us at the rlght time."
almost bound to end in a day dream, as Underscoring hls sel!-confldence, Ra-
volces of obJection have taken root even suga's conndants say the Kasuga group
within the D3P, let alone the cold and in- ~~a P~~~B ~ancial assistance
dlfferent reaction from other partiea. on varlous occasions to JBP right-wingers.
T`here are two approaches among L8P ~E' C~ag however, has re-
leaders to realize the envlsioned new pofl- port~~9 ~~ned strongly averse to go-
tical party. in6 hand in hand wlth any JSP mem-
One is being advoca:ed by DSP chief ber for a new centrlst party scheme.
Sasalci !n favor o! "merger" of four op- In addition, several senlor members of
poaiUon parties-the DSP, Komelto, the ~ the DBP, inclnding Secretary-Cieneral
New Llberal Club (NLC) and the IInited Tsukamoto and partq policy board chair-
8oda1 Democratic Party (IISD), with the man Beigo Ouchi, are expressing iears of
IIrst two piaying a leading role. the D3P losing its independent poflcy line
The other 1s recently being pushed by becanse of the prnposed merger of centrist
DSP's top councilor Ikko Kasuga, who forces.
wants to see right-wing elements of the On top of these dreumstances, the DSP
Socialist Party (JSP) allowed Lo joia the must .engage in a Serce struggle against
lour parties mentioned by 3asaki as com- Komeito, the NLC and other centrist par-
ponents of the envisaged new party. ties in the Tokyo Metropolitaa Assembly
The draft action pollcy to be adoDted in electtna this coming July, a scenario con-
the P~ebruary convention favors the Kasu- trarY to the DSP's wishes to form closer
ga concept as lt saya the DSP should ties wlth them for eventually effecting a
ask "sonnd-thlnking people" (or right- grand merger of centrist forces.
wingers~ in the JSP as weli as the four Ia the flnal aaa~ysis, both the arguments
centrfst partles to participate in the move backed by 3asakl and Kasuga for carrying
for creating a new opposition party. out a new centrist merger are likely to
Fbrmer DSP chairman Kasuga at one end ln smoke.
COPYRIGHT: The Daily Yomiuri 1981
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POLITICAL AND SOCIOLOGICAL
_
EDITORIAL PRAISES `WISE MEN`S GROUP'
Tokyo THE DAILY YOMIURI in English 9 Jan 81 p 2
[Editorial: "Wisdom of the Wise Men"]
[Text]
The Japan-US Economic Relations Group, known as ~
the "~'~'ise Men's Group," has submitted a report to
Prime Minister Suzuki and President Carter which
thoroughly reviews Japan-US frictions, including the
security problem, clarifies each other's expectations
and makes apecific proposals for unproving the situa��
tion from a long-range standpoint We are higb.ly
pleased with the wisdom ahown.
Security matters were not included in the origi-
nai brief of the group, whose themes were limited to
economic affairs when the body was inaugurated
following a meeting between the late prime minister
~iasayoshi Ohira and President Carter in May 1979.
However, in the midst of the group's deliberations,
the incident of the A.merican hostages in Iran and the
5oviet Union's armed intervention in Afghanistan
occurrecL
These incident~ crystallized recurrent claims by
some Americans that Japan was enjoying a"free
ride" under the US defense umbrella. Thns, Japan's
own defense capability became a new form of diplo-
matic friction in Japan-US relations, delicately inter-
twined with economic friction between the two
countries.
In thia respect, we feel that the Wise ~Men's Gmup
acted properly in recognizing the security issue
Denger Of Miainterpretation
But if the US misinterprets this report and puts
preasure on Japan by linking all other frictions with
the security issue, diplomatic relations between
the two countries will become strained. It is reasona-
ble that Japan should use its own judgment in decid-
ing by how much it should increase itn defenee power.
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Of the proposals the group made to the Sttzuki~gciv=
' ernmEUt, t~e US places particular hopes on wider
aoceas to the Japanese marke~ The report seems to
etress what specific measurea the Japaneae Govern-
ment will take in this respect.
~B the report points out, dissatisfaction on the _
part of the US will not accumulate if the Japanese
Government sets up a body to deal promptly with
each complaint as it arises. The Suzuki cabinet should
create an agency with authocity to funetion eftecti-
vely.
Japancse Proposals
The Japanese membera of the group also made
clear-cut proposals, including an increase in US pro-
ductivity. We believe the US will take this
advice with good grace siace the incoming Reagan
administration itself is committed to rehabilitating
the US economy.
Frankly speaking, the report is better than we ex-
pected. If both governments carry out the recom-
mendationa faithfully, the future of Japan-US rela-
tions will be bright.
The Reagan administration will be inaugurated in
less than two weeks. Immediate problems to be dis-
cusaed �are expected to be the automoblle issue and
Japan's defenae buildup.
No doubt, many ~ther problems will arise. But the
two countries musti avoid a situation where an issue
developa into political confrontation. For that pur-
pose, as the report advises, the US ahould refrain
from placing undue pressure, while Japan should
respond quickly to moderate US warnings.
- COPYRIGHT: The Daily Yomiuri 1981
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POLITICAL AND SOCIOLOGICAL _
POLITICAL CORRUPTION CHARGED IN CHIBA PREFECTURE
~ Tokyo MAINICHI DAILY NEWS in English 20 Jan 81 p 4
[Article by Hideo Matsuoka]
[Text~
" Chiba is a standout in political impurtant to get these votes. It the lowest caliber in that
corruption when compared w~th is also important to show that prefecture.
other prefectures. In almost he is backed by that many � And Governor Kawakami
every election, big vote buying assemblymen. and he has to matches his assemblymen.
is reported from Chiba PaY app~val. Like governor, like assem-
Pretecture. There have been so Whatever the moaey is paid for, blymen. The going political
many election irregularifies in it is buying votes. ~ practice is that one does not
that prefecture that you have For Goveruor, Kuchi Kawa- sign a receipt for political
difficulty identifying a par- kami of Chiba Pretecture, he money. Ia the Lackheed payoff,
ticular case with the year of its ~B~Y ~ million to receipts si~ed by Marubeni -
occurrence. The sheer number ~ Bubernat�~al e.recutives blew the lid off the
makes it impossible. candidacy oa the assumption of hush-hush deal, But Kawakami
Koichi Hamada ot Las ~'egas paying each o! some 45 not only signed a receipt for the
fame was elected to the Diet assembiymen ri million. 'I~at ~"00 million in a departure from
trom Chiba Prefecture. we ~~ll~~ political common sense but
wonder how this prefecture can president of a Tokyo real estate even put his seal c the Japanese
keep electing men of Hamada's firm. At t6e time ot election of equivalent ot a Western
ilk year after year. Now it is the �Diet members and the signature) on a written pledge
governor of the prefecture who prefectural goveraor, it seems ~ elected, he would
has made a splash in che it has become a custom tor cooperate aith the business
political pool ot comiption. The Chiba prefectural assem- activities of the doaor and
miasma rising from the blymen to collect "be-good-to- consult with him on matters
where his business interest was
prefectural political mire has me fees trom candidates. It is ~volved. This i~ Iudicrnus! It
sent some people crazy, it wholesale corruption. This that a man
seems. electoral climate naturally isA't anything
~ spawns vote buying: aspirir?g to be a governor would _
Buying Votes In generai elections, it is not do� It borders on hoodlumism.
The political contaminatlon oi uncommon for a candidate to Even more absurd is the
Chiba Prefecture has its root in give moneY to his tn~sted governor's claim that he
t h e c o r r u p t p r e t e c t u r a l prefectural assemDlymen to rettirned the ~50 mill ion to che
assembly. Whenone wants to be obtain votes tor him. In Chiba donor after his election.
a candldate in a general elec- Prefectnre's case. the whole Returning the money after the
tion or a gubernatorial election, assembly was up tor sale. Il is election does not undo the fact
he has to buy the support ot not known how long this of ~g full advantage of the _
prefectural assemblymen. situation has persisted� I can moneyduringthecampaign.
They have votes that they can only assume that the Chiba Kawakami received the
- deliver. For the candidate, it is assembly consists of people ot ~,p ~~op ~Uy from the
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donor, Tetsuo Fukaishi, man of good grace even withirr fear even the ~Judiciary may
president of Nittan Co. In the Liberal-Democratic Pazty, soon beeome incapable ot
r e t u r n i n g t h e m o n e y, he could only have been half ineting out due justice to
Kawakami did not go directly to ~ri~ ~ decl'~Ption of Tanaka. I hope not. If the
Fukaishi. Instead, he m~rely politics as a protession. judiciary does not want to fall
delivered it to a certain K~hota, Polidcs, however, shauld not be under suspicioa, it should
a close triend ot Fukaishi, in a"lowly" protession. On tbe speedily conclude the Tanaka
return tor Kubota's name card ~ontra~'Y. 1t should be a highly trial. 0*ily the coutt can end this
on which he signed the receipt. l~� ~ut digusting state ot politics where
The money iavolved is not just ~~~lljg~~ ~~~'acte- the gi~oup led by a man in a
ten or twenty thousand yen. It is ristics of the politicians criminal court . wields the
~50 million. If Kawakami was themselves are helping biggest clout. That, of course, is
really anxious to establish the degenerate politics into an not the job of the court. B~~t. in
tact that he did ceturn the unethical and lowly profession. reality, tbe court is the only
- moaey, he should have gone ~o~ ~Y~Y else, no auihority that can do the job.
direcdy to Fukaishi and given less a man than a former prime The political world itself is
him the money back in return minister is shoaing the way ~Y a self-purifica-
for the written pledge. ' how to do i~ ac~ many others tion function. '
- Where is that i50 million are unabashedly following in As though Tanaka had tried
now? Everybody involved has his (oatsteps. God's patience a litUe tao much,
been telling either a half truth President F~kaishi of Nittan he developed heart trouble~. The
or a complete lie. There is no hails, like Kakuei Tanaka, fram ailment is said to be aot
tcnowing the truth. One thing Niigata Prefecture. In trying to chronic. But when one is beyond
that is cleaz is that Kawakami buy Kawakami off for ~f50 60, he should be wary of any
gave the donor a written pledge million, it is said ~&aishi put atfliction that threateas the
promising that he would, if wto practice a le.5son he learned health. We have an example in
elected, worf~ in the interest of from Tana~a. Buying a public Masayoshi Ohira. A con-
the donor's business. This fact o(ticial otf is not unco[nmon, scientious doctor would tell
_ cannot be neutrali2ed by and it is rather inappropriate to Tanaka to`stay away from
Kawakami's claim that 6e link just any buying-off to politics ?f he wanted to enjoy a
returned the mooey or that he Tanaka. The problem is, loag life.
had not acted to favor the however, that people have been Moreover, Tan~ica himself is
- dorior'sbusiness. so influenced by what Tanaka completely unwanted in
did that they are wont to Japan's politics. It is because of
Immahtrity associate any politicai Tanaka's evil influence that his
How could Kawakami have corruption with him. It is said faction keeps growing and the
committed such puerile tolly? chat F~lcaishi often mentioned Chiba governor is bought off.
Chiba pretecture citizens must Tanaka's name in conversa- T~~ ~~~~B bu! a minus
be lamenting over the sad fact Go~ Kawakami before tactor in Japanese politics. A
ot being governed by a man ot ~v~g ~~~oney. It all man who should be in political
lead to Tanaka. The political purSatory teeps swashbuckling
gross intellectual immaturity. I climate in Japan has been ~~~ter stage in the
cannot help sympathizing with spotlight, all hls seamy sides
the people who live in the ~0C0u~~y C�~~'
- politically backward and notwit6standing. That he is
- Tanaka Faction allowed ta do so is to shame
contaminated area. "Sym- Japan'sdemocracy.
pathize" is putting it mildly. There has been a corruptive ~7'he Japanese original ap-
Actually, I would li~e to bring avalanche toward Tanaka pears in tbe latest issue ot the
- the Chiba voters to their within the LDP, swelling the weekly "Sundaydfainichi. "i
_ political seflses, Tanaka taction to 101 to become
An acquaintance of mine who the largest intraparty group. No
held two or three cabinet posts LDP government shaild ignore
- used to say, with a bit of selt- Tanaka or his followers.
humDiation, "I am in that lowl}~ Japanese politics musi always
protession called politics." A mind the Tanaka facdon. Some
COPYRIGHT: :~Iainichi Daily News, 1981
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POLITICAL AND SOCIOIAGICAL
COUNTRY BECOMES WORLD'S LEADING AUTO, STEEL PRODUGER
Tokyo BUSINESS JAPAN in English Dec 80 pp 15-17
~Text~
Ihe production of both the steel of Nippon Steel Corporation, is proud
. and auto industries of Japan has final- that both management and labor have
ly exceeded that of the U.S., assuming combined their efforts to reduce costs
the world's top place in both nominal and promote technological develop-
and real terms. ment, thus paving the way toward
This remarkable achievement has today's growth.
been largely helped by the recession in The major reason for the stagnancy
the U.S., but this symbolizes the of the U.S. steel industry has been the
1980s, a decade of confusicn. It also marked decline in the supply of steel
- indicates that the responsibilities of products to the auto industry, which
Japanese enterprises are great in regard has lagged far behind its Japanese
to the world economy. counterpart in small car production.
An estimate compiled by the Inter� The U.S. auto industry, now replaced
national Steel Associadon at its recent in top spot by its Japanese counter-
annual general assembly in Madrid, part, is expected to produce some nine
Spain, shows that crude steel output in m~7lion units this year, while Japan's
the U.S. this year is cxpected to production will exceed 10 million,
decrease by some 25 million tons to reaching more than 10,500,OW (in-
98 million tons, while Japan is ex� ~u~ li t cars).
pected to maintain t}:e sarrie level of In g965 when the U.S. auto indus-
production as in 1979, that is some tiy produced more than 10 m~lion
11?,400,000 tons. As a resuit, Japan _ actually, 11,130.000 - Japan's
has tinally assumed top place in the output was only 1,870,000, less than
world in steel output, exceeding the one-fifth. The pace of Japan's auto
U.S. industry in taking the place of its U.S. -
In 1953 when the U.S. steel output counterpart has been more rapid than
surpassed the 100 million-ton mark for ~at of the steel industry. This, too,
the first :ime, Japan's stee~ output ~~n ~e result of a united effort
- reached only 7,660,OOo tons, much less ~t~,,,~n management and labor.
than one�tenth that of the U.S. Even ~~verted phenomenon, how-
- in the period of high-paced growth of ever, may not last very long. Crude
the Japanese economy after 1965, the steel output in the U.S. is expected to
U.S. steel output was roughly twice ~ach 112,500,000 tons next year and -
that uf Japan. The marked increase in ~r production will also reach a
Japan's steel output can be ascribed to f~.productiun stage. Japan's steel and
the stagnancy of the U.S. steel indus- auto industriss will not be able to
try and the effort of its Japanese avoid for long a counterattack from
counterpart. Eishiro ~aito, president their U.S. and European counterparts.
COPYRIGHT: Nikkan Kogyo Shimbunsha 1980
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POLITICAL AND SOCIOLOGICAL
PRIME MINISTER~S OFFICE POLL TESTS PUBLIC~S ATTITUDE ON DIPLOMF~CY
Tokyo BUSINESS JAPAN in English Dec 80 pp 20-22
~Text~
The number of Japanese taking an Asked with which country they
unfavorable view toward the Soviet think Japan concentrate on in pro-
Union has increased during the past moting friendly ties, 32% of those
year due to the Soviet intervention in questioned said the United States, 24~0
Afghanistan and the buildup of its replied China and 14% all countries in
military facilities in controversial the world. Compared w~�h a simIlar
islands off Japan's northernmost main survey last year, those favoring close
island of Hokkaido. Japan claims the ties with the United States and China
islands which were seized by the increased 3 and 4 percentage points,
Soviet Union in the closing days of respectively. Only 1% each said they
World War II. favor promoting close ties with the
The latest public opinion poll on Soviet Union or South Korea. The
diplomacy, conducted by the Prime percentage of those favoring close rela-
Minister's Office, showed that 84% of tions with those two nations remained
persons questioned do not feel friend- unchanged from 1979.
ly toward the Soviet Union. On U.S.-Japan relations, 77% of
Meanwhile, the poll showed that those questioned said they feel friend-
many Japanese want to promote ly toward the United States because
friendly relations with the United they said Japan and the United States
States and China. The number of be(ong to the free wortd and that they
_ Japanese looking for close ties with have a close affinity with each other in
China is pacticularly increasing in re- economic and security mv.ters. Those
cent years, the Prime Minister's Office who consider the United States as
said. Japan's important partner increased to
The poll was conducted May 29 - 22% from 16% last year.
June 4 among 3,000 Japanese chosen On Sino-Japanese relations, 79%
at random throughout the nation. felt friendly toward China, up from
Questions were asked conceming 71% last year, while 80%, or eight
Japan's diplomacy at large, its rela- percentage points more than last year,
tions with other nations and future ~d they believe Japan already has
diplorracy as well as economic co� friendly relations with China. This
cperation and the Indochinese refugee means a large majority of Japanese
pr~blem. now believe firmly that China is a
Asked which area they are con- close neighbor in name and reality
cerned about the most, a majority of especially with the recent visit to
persons questioned said Asia. Other Japan by Chinese leader Hua Guofeng
persons chose the Middle East, North and the development of cultural and
America, East Europe (including the economic cooperation between Japan
Soviet Union) and West Europe in that and China. -
order.
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On Russo-Japanese relations, only the results of this poll would indicate.
_ 8%, or 5 percentage points less than Japan lodged a protest with the _
tast year, said they feel friendly Soviet government because the crip-
toward the Soviet Union, while those pled Soviet submarine violated Japa-
who said they do not feel friendly nese territorial waters on its way to
went up to 84% from 77% last year. the naval base at Vladivostok, Siberia,
Asked about present Russo- despite the Japanese demand that it
Japanese relations, 74%, or four per� stay clear of coastal waters because of
centage points more than last year, said a possible radiation hazard.
relations were generally not good, b~- The Prime Minister's Office said
cause they felt the Soviet Union is not only 10% of those questioned claimed
trying to settle territorial issues involv- they are satisfied with present Russa
ing the four northern islands off Hok- Japanese relations because they said
kaido while, at the same time, it is bilateral fishery problems aze settled
engaging in diplomacy backed up by through negotiations, while the two
military power including activities in countries are promoting economic ca
Afghanistan and the Far East. They operation with joint development of
also said the Soviet Union is a com- Siberian tesources. They also noted
munist nation and is conducting un- that the two countries are promoting
friendly activities in Japan, including cultural and sports exchanges.
espionage activities. As to the Indochinese refugee prob-
Since the poll was conducted be- lems, 57% said they will give assistance
fure the Soviet nuclear-powered sub- to refugees whenevPr necessary. The
marine incidenc that occurred in Prime Minister's Office said 78% of
August, the present Japanese feeling those questioned would welcome re-
toward the Soviet Union can be as- fugees wanting to live in their
sumed to be much more critical than neighborhoods. ~
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MILITARY
EXPANDED JOINT U.S.-JAPAN MANEUVERS BEING PIANNED
Tokyo BUSINESS JAPAN in English Dec 80 pp 19, 20 -
~Text~ ^
According to a Defense Agency In the 19th joint exercise, ASDF's
source, the Air Staff Office of the F4EJ and F104J interceptors engaged
Defense Agency is currently stuay- in aerial combat with F15 and F4E
ing the feasibiliry of upgrading joint fighters of the U.S. Air Force and A4
- maneuvers of the Air Self-Defense attack planes of the U.S. Marines.
Force (ASDF) and the U.S. Air Force The joint maneuvers always are
to a large�scale, sophisticated joint highly instructive to the ASDF, be-
operational training program designed cause its men are able to eng~ge in
to improve the Japan-U.S. joint de- aerial battles with aircraft of different
fense capability in an emergency. types from their own, and they can
Detailed training plans canceived also learn aerial combat taciics from
by the Air Staff Office include: (1) U.S. pilots who have had actual com-
training aimed at enhancing electronic bat experiences.
warfare technology by employing U.S. The joint maneuvers thus far con-
B52 strategic bombers as target planes; ducted were mainly for improving
(2) joint operational maneuvers using aerial combat ability. The Defense
the Airbome Warning and Control Agency officials and ASDF personnel
System (AYVACS) and (3) large-scale are eager to have opportunities to
joint defense maneuvers to be partici- conduct more sophisticated aerial
pated in by Japanese and U.S. air combat training.
forces, incorporating the radar net- Because one of the serious draw-
work and the network of anti-aircraft backs of the ASDF is the lack of
missiles in Japan. 'I7ie Air Staff Office electronic warfare technology, the pro-
will identify problems concerning co- posed maneuvers using B52s is de-
ordination with the U.S. and the pre- signed to improve this particular inter-
paration of a domestic defense setup. ceptor-plane technology. The B52 is a
All this is intended to improve the large bomber with sophisdcated elec-
quality of the maneuvers in line with tronic combat capability. The ASDF
the guidelines on Japan-U.S. defense hopes that B52s will be used as target
cooperauon. This is attracting atten- planes.
tion as indicating that the Defense The proposed maneuvers using
Agency has taken a step forward AWACS are intended to train ASDF
towazd escablishing a structure capable pe~sonnel taking concerted action with
of effectively meeting an emergency AWACS to counter "enemy" planes
under the Japan-U.S. security treaty coming in at low altitude when the
system. radaz network is destroyed.
Beginning in November 1978, the The Defense Agency hopes that
ASDF and U.S. Air Force jointty have large-scale joint maneuvers using not
conducted maneuvers 19 times, the only AWACS and the radar network
last one a four-day exercise from and the network of Nike-J and Hawk
October 17 in the area centering on antiaircraft missiles but also Japanese
Misawa Air Base in Aomori Prefecture and U.S. combat units will be realized.
in northern Honshu. ~
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By conducting such comprehensive ~(n order to realize the proposed _
maneuvers, the Defense Agency hopes jo~t marbeuvers, various problems will
to build up and perfect Japan s air have to be solved, such as U.S. re-
defense structure. sponse to the Japanese proposal, the
Prior to conducting such maneuvers Japanese political situation and legisla-
using AWACS, the Defense Agency is tive problems, and the difference in
studying the possibility of ASDF con- strategic procedures and in com- -
ducting joint maneuvers using the munication equipment between the
E'Cs of the U.S. Navy before the E2C pgDF and the U.S. Air Force.
early airborne warning planes are Accordingly, the Air Staff Office of
introduced into Japan. the Defense Agency will study these
The proposed improvement and ex- problems thoroughly so that full-
pansion of the Japan-U.S. joint fledged Japan-U.S. joint maneuvers
maneuvers is based on the need to can be realized.
improve Japan's air defense capability.
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MILITARY
WEA.PONS EXPORT PROMISING BUT CONTROVERSIAL FIELD
Tokyo BUSINESS JAPAN in Engli~h Jan 81 p 41
~Article by Yoshiteru Oka, associate editor, FUJI EVENING~
~Text~ -
HOUGH there was a great deal of tion effect being achieved," Shindo
T debate on whether the Tansam (a continues, "nobody should have to
_ Japanese abbreviation for a particular complain that Japanese-made weapons
short-range surface to air missile origi- are non~competitive cost-wise. The
nally developed in the U.S.) should be government should permit us weapon
domestically manufactured or im- manufacturers to export them and
ported, it has finally been decided to compete with overseas manufacturers
produce them in Japan. Seizing on this on an equal footing." This statement
opportunity, however, some people well demonstrates the irritation of the
have started appealing for the lifting of inembers of the Electronic Industries
the current embugo of weapons. Asso~iation of Japan and the Ord-
Sadakazu Shindo, Chairman of nance Association.
Mitsubishi Electric Corporation and There is something reasonable in his
President of the Electronic Industries comment. Concerning weapon export,
Association of Japan, which has many Japan has the most strict regulations in
leading weapon manufacturers as its the world. The three principles on the
members, emphasizes that with the export of weapons have been long
exception of exports to belligerent observed by the government. On the
na4ions, the government should lift basis of the Export Trade Control
the embargo on weapons from Japan. Order, the principles are applied to the
~ Shindo's statement is in contrast to following three cases: no export of
the recent debate at the National Diet: weapons is allowed to (1) Communist
it is less costly to import the Tansam bloc countries, (2) countries to whicr.
than to produce them domestical- the export of weapons is prohibited by
ly. He calims that the cost of domes- the resolution of the United Nations, -
_ tic production of weapons can be and (3) international belligerents or
greatly reduced once their mazkets possible belligerents. Furthermore, in
are expanded and mass-production February 1976, then Prime Minister
- introduced as markets are enlarged. Takeo Miki stated at a National Diet
This can also lead to fortifying the spssion that virtually no export of
defense weapon industry's internation- weap~ns was aqowed.
al competitive strength and demon- Even under such strict restrictions,
strating the excellence of Japan-made however, it is undeniable that Japan
weapons to the world, he insists. has exported some weapons for use in
"The reason why Japan-made war actions. Though the Ministry of
weapons are comparatively costly is International Trade and Industry
that their export is restricted and their stipulates the range of "weapons" as
users are confined to the Defense "d'uect lethal weapons," the range or
Agency alone, with no mass-produc- limit of weapons is extremely vague in
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itself. Shces many U.S. soldiers wore used for close air support also.
in jungles in Vietnam were jikatabi or 'I'}~en once the embargo is lifted,
workmen's split-tced heavy-cloth the prices of Japaneso-made
shces made in Japan. Airbome TV Weapons go down? Even though the
receivers to control SMART bombs embargo is lifted, this does not direct-
were also produced in Japan. They ly lead to their export. Only when
may not be direct lethal weapons, but their reliability and pnces are proved
_ how about Japanese-made motorcycles ~ternationally competitive they can
adopted by the U.S. Army during the be fust exported. The reliability of
Vietnam war? The U.S. Army used Japanese-made weapons is not highly
these cycles instead of tanks in ap- evaluated. In order to enhance their
proaching enemy lines, making break- reliability, more efforts and expendi-
- throughs in barren lands and jungles tures must be made in research and
after advancing irsto battle areas by development, tests, and assessment,
helicopters. Though tanks are not ex- ~d ~e cost for these efforts must be
ported from Japan, motorcycles or t~~ ~at currently being
jeeps to be used for the same purposes spent. Even after lifting the embargo,
as tanks can be exported freely. the prices of Japanese-made weapons,
Rifles are representative lethal therefore, would not become cheaper
weapons, but the only domestically ~mediately.
produced ri(le, the M64, was once ~e Japanese defense
exported to the Thailand Police Force weapons industry expects to export
and the Border Patrol Police. As the large numbers of weapons to the Mid-
three principles on the export of dle and Near East in particular, the
weapons are applied only to armed area is currently unstable from a politi-
forces and not to the police, MITI cai standpoint. Even if the industry
approved the export. The Thailand tries to help the nation import more
Police Force is actually an armed force oil from the area collaterally with ihe
itself. export of weapons, the oil supply
The export of weapons from lapan could be stopped suddenly due to
has already been made to this extent, some political change in the area,
so once the embargo is lifted, exports jeopardizing the future of the nation.
would be infinitedly expanded. If not Japan should not hastily resort to
fighters, the export of reconnaissance increased exports of weapons even
planes or trainers could be made. But ~o~~ it would seem to be a promis-
transport planes are able, to lay mines ing field for the future. O
and the current trainers are usually
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DEBATES TO ESCALATE ON DEFENSE, SECURI~Y ISSUES
Tokyo ;~IAINICHI DAILY NEWS in English 6 Jan 81 p 2
- [Editorial: "Security of Japan"]
[Text]
Debates on our security problems will escalate
this year in the face of mounting American pressure
for Japan to increase its defense outlay. It is
regrettable, however, that the Suzuki cabinet has so
far failed to elucidate its fundamental stand on the
defense and security issue.
At the same time, we cannot but entertain some
anxiety that the rising call in some quarters of the
Liberal-Democratic Party for revision of the Con- _
stitution may endanger Japan's secarity. It goes
without saying that the basic idea of security calls fo~ ,
efforts to stabilize the environment both at home and
abroad to minimize the threat against the people's
livelit~ood.
With regard to the oft�publicized "Soviet threat."
the Soviet Union itself has demonstrated by its deeds
that tl~e maintenance of stability at home constitutes _
the biggest deterrent. iVloreover, this country aims to
remain a peace-loving country by virtue of Article
Nine of the Constitution.
The nuclear race between the United States and
the Soviet Union has also been checkmated, while the
emergence of the Th~rd World has made it impossible
for the big powc:i6 to engage in reckless military
actions.
L'nder such circumstances, there is every reason
to believe that the correctness of Japan's peaceful
policy will be prnved. This dces not mean that the
- pursuit of economic security under the preteat of
_ being a peaceful country, in other words, efforts for
securing supplies of food and energy from abroad,
can be justified.
Japan is at once a peace-loving camtry and an
etonomic power. It is a pity that the nation has not
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tully realized the importance of contributing its
economic power toward the stability of the in- .
ternational environment.
It must be noted, however, that the 1981 fiscal
budget for economic cooperation aimed at easing the
north-south conflict is relatively small considering
Japan's current economic might. The budgetary
_ scale must be raised to the level of other advanced
nations within tive years. As a peace-loving country, -
we are obligated to tackle this issue all the more
positively than other nations. .
In concrete terms, for instance, we should take
the initiative by extending a helping hand to increase
food production in Southeast Asia, since food is the
basis for the promotion of industrialization and the
people's living standards. ' ~
Since Japan depends on imports for 90 percent of
its energy needs and 60 percent of its food
requirements, a settlement of the north-south
prnblem is essential for Japan's security. However, if
we are too intent upon securing these resources
without stepping up our efforts , for economic
cooperation, we are doomed to be termed economic
imperialists. ~
An easing of the trade friction between Japan and
the United States and Europe is also essential for the
maintenance of a stabilized international climate. At
- this time when justice and welfare are calling for
more attention both at home and abroad, present
trade principles based on freedom and in-
discrimination will soon be replaced with those based
on freedom and justice.
The most advanced countries have already
adopted preferential tariff systems in importing
goods from developing nations as part of their efforts
to promote development in these countries. Depen-
ding upon the circumstances, some industries in this _
country will be seriously affected, but then the
government must endeavor to settle suc~fi possible
outcome b~ encouraging industrial adjustment. ~
Mutual dependence in the fields of technology and
capital, as witnessed in the proposed tie-up between
Nissan Motors and Volkswagen, must be fttrther
promoted. If mutual dependence is deepened through
Japan's positive participation in the development of
the Siberian economy, the Soviet threat will diminish.
A sense of unity is particularly strong in our
society, which has been called a Japanese village, but
we must overcome the eacclusionism inherent in a
village society and contribute toward the construction
of what can be called a"global village." The best way
to maintain our security is to make this country an
indispensable entity in the world community.
COPYRIGHT : tifainichi Daily :tews , 1981
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ECONOMIC =
JAPAN'S ROLE INCREASING IN INTERNATIONAL ECONOMIC SOCIETY
Tokyo BUSINESS JAPAN in English Jan 81 pp 61, 62
~Article by Hiroshi Yoshimoto~ direc tor-genera 1, Securities Bureau, Ministry of
Finance~
~Text~ e~NG with the enhancement of more advantageous than doing so in
1~ Japan's role in the international Japan because of the gaps between
economic society in the 1980s, inter� foreign interest rates and domestic
national capital transfers in the ones. The international exchange of
nation's securities market are expected funds is thua expanding yeaz after
to become more brisk, further promot- year.
ing the market's internationalization. ~
Stock Market
Bond and Debenture Market The Japanese stock market in 1980
Japan's bond and debenture d'rstri- strongly reflected the influence of
bution market is expanding its scale international transfers of funds cen-
rapidly with total transactions exceed- tered around oil money. From the last
ing 1~200,000 billion a year. As a ten days of last July, foreign investors'
result, the Tokyo capital market is buying of Japanese stocks, both blue-
gmwing as one that can well compare chip stocks and those of large enter-
wit}~ its counterparts in the Western prises, became especially active with
hemisphere. Investments by foreign the net purchases amounting to some
investors in Japanese bonds and deben- ~90 billion in July, ~190 billion
tures are continuing to be active, with in August, ~220 billion in September,
their ne~ buying from January to and ~74 biliion in October. The mar-
October 1980 tota}ing nearty ~800 ket regained briskness with stocks of
billion. The amount of foreign deben- large enterprises being transferred,
tures issued in yen by foreign organiza- with their quotations renewing their
tions is also increasing. 'Ihou~h the previous records. Total transactiens ~
amount of foreign bonds issued on a also increased. The increase in for-
yen basis remained at a lower level in eigners' investments was due to their
the first half of fiscal 1980, it started higfi evaluation of the Japanese econ-
- to increase again last fall reflecting the omy, and has a deep significance from _
improvement in the bond market since the standpoint of international trans-
last April. fers of funds including the reflux of oil
Investments by Japanese investors money.
in forcign bonds and debentures are
also active. Floating of foreign loans International Exchange of Securities
by Japanese enterprises is also steadily Companies
increasing, procuring as much as Against the background of the
~�442,30Q million in the first nine increasing intemationalization of
months of last year. This is because securities transactions from the begin-
the procuring of funds overseas is n~ng of the 1970s, internationai
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business by Japanese securities com-
panies rapidly expanded from around Out~ook for the Securities Market
1972. Such international business of Despite the severe environment in
Japanese securities companies is being which the price of imported crude oil _
developed overseas mainly in the form has been sharply increased following
of local corporations in such cities as the two oil crises, the Japanese econ-
New York, London and Hong Kong. omy has steadily expanded thanks to
In 1980 alone, three local corpora- the people's successful coping with the
tions, one branch and six staff offices environmental changes and the
were opened in the Middle and Near strenuous efforts of enterprises to
East and Australia among others (as of improve their management over the _
the end of October). Their inter- past several years. During this period,
national business has thus geographi- the Tokyo capita) mazket has devel-
cally diversiFed. As the law concerning oped as a relay base for the inter-
foreig~ securities companies came into national transfers of funds. As men-
effect on September 1, 1971, foreign doned earlier, foreign investors'
securities companies were allowed to acquisition of Japanese stocks has
establish branch offices in Japan, and become very acdve also as they have
there are now four companies doing highly evaluated the strength of the
business here with five branches in Japanese economy.
- Japan including two companies which It should be noted that the new
opened their offices in 1980. In addi- Foreign Exchange Law came into ef-
tion, cases in which foreign securities fect l~st December. The liberalization
companies establish staff offices with- of foreign exchange transactions and
out doing securities business but for international exchange of funds
the purposes of collecting and offering through the nation's securities market
information concerning the securities now is acpected to become more
market are on the increase. As of the brisk.
end of last October, 65 foreign secu- At the threshold of the age of full
rities companies had staff offices in internationalization, the role of the
Japan. Along with the further inter- nation's securities market will undergo
nationalization of the securities mar- serious tests in the international eca
ket, such cases are expected to in- nomic arena. O
crease.
COPYRIGHT: 1981 The Nihon Kogyo Shimbun
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ECONOMIC
JAPAN-U.S. ECONO~IC RELATIONS REPORT PRESENTED '
Tokyo MAINICHI DAII.Y NEWS in English 12 Jan 81 p 2
IEditorialJ _
[ Text l 'The final report aim a m rnv g Japan-U.S.
economic relations was presented last week by the
Japan-U.S. Economic Relations Group, more com-
monly known as the "Wisemen's Grnup, ^ to tqe heads
of both governments.
The report, the first to be filed by a group of
prnminent figures of both nations in their joint effort -
deserves due credit, we believe, for the significant
bearing it will have on attaining the goal.
The report, unlike others, is straightforward in
expression. Touching on the sources of trade friction,
it bluntly poi~ts out the lack of the sense of in-
ternationalism among Japanese government officials
in dealing with trade problems, and also strongly -
criticizes the growing protectiocusm in both the U.S.
_ administration and the Congress.
The constructive recommendations, made from
long-range perspectives, cover wide aspects of the
causes to be removed to improve the bilateral trade
relations. .
Among them is the need to set up a White House
national council on prnductivity ~~prove the low
U.S. productivity, one of the major causes of the
friction, and to map out realistic policies toward this -
end.
As for Japan, it also offers many proposals as
well, with two of them deserving our close attention.
One is for the Japanese government to set up a
"powerful central office" for consultation and -
resolution of trade and investment issues to improve
market openness in Japan.
The other is to prnvide American firms doing
business here, or planning to do so, with preferential
treatment. On this score, the report says both nations
should give foreign firms operating in each other's
countries the equal preferential treatmept that the
domestic firms enjoy in all aspects qf business
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operations such as in taxation, subsidies and _
development prnjects�
The market here has finally become just as open
as that in the United States in the ~~y
tariffs and import 9uotas. DesP
American exporters still find a barrier in what
amounts to a Japane.se govemment bureaucracy in
taking required procedures for obtaining apprnval
and registration of their exported Boods and for tests.
This, coupled with Japan's commercial practices
and social and cultiu'al structures that differ from
those in the United States, has given rise to a strnnger
impression in the U.S. that the Japanese market is
more closed than it ~ Ce
~y for establishing a cenn'al
In this respect,
.government office to deal with American
businessmen's complaints in trade and investments
here is meaningful and useful. It also falls in line with
the Japanese effort to maintain an oPen gl�ba1 trade
mechanism. Inade is, as stated
Another important proposal
earlier, to provide .~merican fu~ns `xith ~e s~e
preferential business treatment that the Japanese
firms enjoy. '
We believe this is the mast effective way to
recnove the basic cause of trade fricGon with the ~
U.S.-a move which wi11 certainlY contribute toward
maintaining a global mechanism of economic in-
terdependency.
. The biggest 9uestion that both the Tokyo and
_ Washington governments face is how to translate the
proposals into realiry�
We are somewhat con~erned about the change of
the American administration.~We~ ~ ~
~c~~
about the uew U.S. Congress ~ is
prntectfonism agai~st Japane~e imports,
evidenced in lwldin8 a Public hearinS on the import of
Ja}~anese automobiles.
We strongly hope that President-elect Ronald
Reagan and the Congi'ess will take due heed and
respect the Wisemen's findings whfch say in part that '
success by the U.S. in increasing its industrial
productivity and controlling inflationary pressure,
rather than restricting Japanese unPuTts, is essential
in eliminating ihe sources of trade ~ricaon.
Also, closer consultation and better com-
munication aimed at imPro`~g ~ bilateral trade
relations on the private level, not only ou We c.abinet-
minister level, seem essential. .
COPYRIGHT : MAINICHI DAILY NEWS 1981
CSO: 4120
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ECONOI~IIC
,
JAPANESE ECONOMY FORECAST FOR FY 1981
Tokyo :YfAINICHI DAILY NEWS in English 4 Jan 81 p 5
[Text]
~ Fiscal 1981 ~Apri119E1-~iarch ~~s ~~~Y P~r World Economy, Trade
1982) will see an economic cut-0ttofIranianexports.
growth of 4.5 percent in real Given the cw~ent decline in cl) In calendar year 1980,
ter;ns wtu7e the current fiscal o~ ~an ~~~y. the six major OECD countries
year t April 1980-`?arch 1981 ~ p~g ~ hi~ level (the United States, Canada,
w~ll . end a~th a growth of 4.7 ~~u ~rv~ United Kingd~.-n, West Ger-
p e r c en t, t he l~i i t sub i s h i produ~tion. capacity in OPEC manY, ~'ance and Italy) were
Research lnstitute has estimated to Dave posted a ,
predicted in its semiannual ~~r of negative growth rate of around
report on the outlook for the stwrta8e d~ain8 thi~ a~inter is i~ 01 percent. The setback of
nation's econ~my. f~ ~y, business activity in the United
The nation's economy is a~ States tim~ed out to be stmrter
expected to follow the path to ~,of ~~~g than had originally been
recovery in the coming fiscal ~itioas and assumed, and this will prevent
- year. But the surrounding ~~y~.d p~ ~ the average Browth rate for the
situation tar the Japanese ~ op p~ ~ ~ a wha~e from
ecosmmy will not ~ as rosY as it wint~r montts of :ate 1981. P~~B a larger negative
used to be during the period of .
ecnnomic expansion, the report M~~'~ ~ OPEC is pb ~~r }~and, as the U.S.
reads. ~uilikely to be able to agree on a ~~y ~ expect~ed to suffer
- tuc~ rate of pric~ increase for ~~r de~;ine in eariy 19&1
The English version report ~~8 and conditions will remain
released by MRd follov~~s. - q~ ~t ~ be p~~ for a basi~aiiy subdued till mid-year
Editor. succession of arbitrarY in the other five co~mtries.
creases by iadividual UPEC ~ growtb rate fa the six in
I. OU~OOk ~f ~'a1�g ~ m'ODt~� - ~ ~981 is ezpeCted to average a
It was I~ky fort~e to fmd the mere02 percent.
Ex~Tn11 FaC'LOIS average per barrel' prfce ot
- ~pE~ ~g t2? Meanwhile, the new.
Ofl Situation s4o at thee ~d of caleadar year y~' t0
1981. (See Table 11 easiag of inflationary pressures
The reductioa of crude oil -
- supplies re.~ulting fmm the - � - - - . _T _ .
outbreak of the Iran-iraq w~ar 'fi~le 1'"
_ corresponds roughly to the OPEC oil prices
shriakage that occurred ~ (i/bbl)
t o i l o w i n g t h e K h o m e i n i J~.~M~. ppr.-,Tun. Jul:
Au~ Sepk-Dec. Year average
ftevaiution in Iran. However. lggp 2gZp 31.pg 32.61 33.56 31.5~
the general view is that the 19g1 34.97 35.96 37.86 39.62 37.19 .
prevaiiing shortage will not Nate: PticesaieenOPECgovernment sellingprkebasfs. .
~ harm world oil market con-
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relative to 1980 i~ all of the six Tab1e$' . ' .
couniries. Nonetheless, the rate � OveTSeas Economy Projections
_ ot inflation itself will still be ~ 1579 1980 i981
high with an average 10.5 A~~g~ ~ term growth rate '
percent i~crease in . consumer of the six m~jor countries c~O ) 2.7 -o.l 0.2
prices tor the six. of which: U.S. 2.3 -0.7 -0.2
~3) Sluggish busiaess WestGermany 4.4 1.8 0.7
coaditions in the major coun- U.K 0.9 -2.5 -4.3
tries caupled with a low siarting Average increase of consumer prices
point at the begirmiag of the iatbesixl�ol ~ 10.6 13.2 10.5
year will ~inhibit a strnng ex- otwhich: U.S. 11.6 13.6 11.0
pansioa of world trade in 1981. WestGermany 4.1 5.7 4.1
Our project~on is for a meagre U�K 13.4 ~ 18.4 11.2
2,3 perceat increase in the Vah~e ot ~orld imports (bill. S) 15442 1957.8 .2277.7
volumeof worid imports forthe .fd~ange.sowerprevw~Year, ~ (25.6) (26.81 (I6.3)
year. cSee TaDle 2) chanBes in imi: value (~o ) 18.2 23.1 13.7
' Changesl~ volu~e 6.3 3.6 2.3
. . ])evelop�d couptries 1141.6 144Z.1 1675.4
II. ~~Outloog Of ~c~~o~~rp~year~ czs.i~ czs.~~ cis.~~
Ja anese Econom ~~~t ~ 18.s x~.s 13.9
P Y cbanges ~n votnme 7.7 2.2 ~ z.o
~vp,~pQj~g ~p~ � 402.6 515.7 602.3
ResttltsOf Forecast . cchangesoverpreviousyear~ c1s.9~ c28.1~ c1s.s)
c 1 t I~t ite af the ressures ~~~t value 142 ~ 23.4 13.4
SP P changes in volume 4.2 3,8 3.0
for adjustment towards the� ~ � '
impact o[ the second oil crisis.
the Japane.se economy is ex� carrted aver into the January- 'men~,'s target oi S9.1 billion. it !s
pected to post a telatively 6igh March quarter of 1981. Ttws, certainly an improvement of
growth rate ot 4.7 percent in . tbe burden of exc~ess stocks will co[~iderable scale.
(iscal 1980. Major factors of bear down 6eav~y on the S u s t a i a e d b y t h e s e
growth will have been the economy throughont the developments, the yen rate has
strength of prtvate investments remaining months of fisca11980, been on an ugward trend for
and an exceptio~rally large so that in spite of. the hl~est some time. By the end of the
expan.cion in net acports. Aapid GNP girowth rate among the cin~c~ent fiscal year, the rate is
growth of expocts and devdoped camtries, loolang acpected to have :isen by more
depressed imports are expected back at tbe fiscai 19E0 ecooomy, than 25 percent against 262 yen
to result in an increase of ooe vvould Gnd all tbe sy~nptoms per ddlar at tde beginning of
al most 60 percent in net ex- of a t~eces~oa year. the year.
ports. Increases in whoiesale and (2) In fiscal 1981, the
On the other hand, iaflation .c~er prices.are experted Jaganese ec~omy is projected
and the res~ilting decderation to stazxi at 13.5 percent and 7.8 to grow by 8.9 perc~t and 4.5
of growth in rea! incomes will percea~, r~htivvelY. for the perceat in nonninal and real
dold down persoaal con- year. The~ are by no meaas terms, respectively. Wh~7e the
sumption to a meagre 2A iow rates of in~ation. Never- fiscal 1980 ~ real term ~
owth
percent increase in real tertns: theless, the rate ot price rate of 4.7 percent ~~+ill have
the slowest growth yet since creaSe is eapected to decelerate bee~n susiained by a 2.3 percent
flscal 1974. Nor will housing ~ially during the latter statistical carryover from
_ investments be a contnbutor to~ half of tta~ year, and we may fifical 1979, the cariyover into
girowth. Soaring ho~se prices ca~qy say that domestic fiscal 1981 will be a mere o.9
- and Iac~ ot purrhasing power inflatiun has passed its peak in percent. In other words. the
will combi~e with the fact that Japan. economy is expected to attain a
the housing market is ap- Strnag exports and slow strong quarterly average
proaching saturation to res~ilt growtb of imports cnotabdY g~owth rate of 12 percent in
in a negative growth rate of 4.& crude o~7 imports) are expected fisca11981.
percent in the outlays for to resuIt in a marked 'un- Owing (a) to relatively slower j
housing. provemeat in t~e balance of rates of increase in OPEC crude
Owing to this generally payments. Our projectioa is for oil prices and (b) to the up-
lackluster perfortnance of a c~u~reflt account def'Kit of floating of the yen's exchange
domestic final deinand, in- 511.5 billion in fisca11980. While rate agauist the doUar w�hich
ventory adjusiment will be this falls. s~ort of the govern- will work as a buffer against the
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infiltration of in?lationary Thus, so (ar as the ~owth One major element of con- ~
pressures from overseas, the ~performances of the demand cern is the basic insta~ility
rate of inflation is expected to compo~ts are concerned, the inherent in the current in-
decelerate during the Tina1 domestic private sector is poiitical situation.
months of fiscal 1980 and expected w lead economic No cIear blueprint for ending
throughout fisca11981. Thus, the expansioa in fiscaD 1981. In spite ~ U~.Iraq war has yet been
situation will be one ot: a rising of this, tt~e fisca11981 economy drawn by any of the parties
- e!cchange rate--slower infla- w�ill essentially lack the The pre,serxe of -
tion--recovery of domestic de- buoyancy which is n~rmallY ~ Soviet troops in Af~anistan
mand-sustained G~1P growth. ~0m ~ a~�~ appears to have become an
This is the type of virtuous pattern. Corporate profits accomplished fact. Now the
spiral that West Germany was P~ iarge increa.ses ~n the world ts faced with th~
able to enjoy following the first ~~f of 5sca1 1980 due to possibpity of Soviet tnilitary
~ oil crisis. ~g ~P~. 6~ interveation in Poland.
The tiscal 1981 rates of in- risinBvatueoicheyenanarapia Amidst this cluster ,of
riation are projected at 3.2 p~ destabil'tting factors, the U.S.
percent . for w4olesale prices of has experienced a change in its
and 5.5 percent tor coasumer ~ C�~~ pr0t~ political reg~me and the basic
prices: a marked slowdown in to . di~minish to virtually zero inclinatioas oi its nea leaders
both cases compared to fiscal growth m fisca11981. ~ are as yet unkown. Prospec~s of
1980. However, scheduled in- ~ J~� S an overall adjustment in policy
creases in the various public ~e management cacu;at be ruled
utility charges a~ll prevent pected to post a stnplus of 56.7 out either in China or in the
consumer intlation from b~ 198: a s~' Soviet Union. The second year
decelerati~g as npidly as is ~ increase a8~ ~ ot the 198os will no doubt be a
anticipated for whulesale S.2billions~n~plasoffisca119~0. year of arute instabiliry and
p~c~. ' This . will be tbe result of mamy surprises whe. e in-
- Sustained by steadier prices S~ ~~8~ in eaPo?'~ teraational politics are con-
and a relatively favorable ~ ~~g ~ ~
~th of im parallel to
employment situation, personat ~ Another factor of instability is
the improvement in t6e trade ~~(~y the oil situation.
consumption is expected to Japan's current ac- p~g ~~he Iran-Iraq war,
become the leadmg factc of ~t deficit is also ted to
expansion in fisca! 1981 with a ~ supply of ~crude o~1 from OPEC
real term incre~. ~ of 4.1 per- frum t11.5 b~7lion in is expected to remafn at sub-
ceat over tiscal 1980. Private fiscal 1980 to 56.5 b~illen in C~scal dued levels for at least a year
invesiments will also cartinue 29B1. ThLs imprnvement in the from Qow. Given thiS un-
to be a strong co~ributor to ~ C�~~ derly~ng shortage, the -
growth with a 6.0 perc~nt rate of ~~~C ~8~ ~~e possibility ot r~ewed ronfusion
increase fn real tzrms. Most of ~mY ~~t in i~ world oil markets and a third
these investments will be aimed furt6er upward pressure on ihe ezplasion in cnide oil prices
at eaergy conservaticm, co~- p~n rate. , cannot be eliminated.
vertioa from oil to other energy Fallfig impa~ts and abundant
sources and modernization. Ijj, Fe~tures Of supplies in the importing _
weanwhile, tpe need to co+mtries have thus far restilted
- r~iuce the ~urrently massi~e Eeo~omie Outlook in compa'rative peace in world
budgetary deticit will restrain � . o~l mar~ets." Hoaever,~ should
public spending to alinosi zero T~~Y~'otthe1980swas the supply s6ortfall be
growth in fiscal 1981. Both jt~st out. Last year w6ich began prolanged still further, the
govemment fiaal cor~mption R'ith the entry ot Sav~et troo~s preyailing balance between
and goverament fAed capital ~~0 ~ S~re ~ supply and demand will
formation are expected to see ~e unavoidablq be desiroyed.
- very little c6ange from fiscal ~~r ~b~'a of Meanwh~e, as Saudi Arabia s
19~ w-ith growth rates cf 0.5 ~~y daily production level ap-
percent aad o.2 percent P~~ ~ capacity, the
respertively for the two items. Governor Reagan and the OPEC price hawks are
Exports which had been a ~P~~� U.S. gradually gaining gmuud with
' predominant factor of gro~rth in presideatial election. Coo- little that can be done to stop
fiscal 198o are also eapected to ditions surrounding the them. The situation calls for
see a rnr~siderable slowdow~n in JaP~ ~�my are likely to further and more resnlute ef- -
fLsca11981. ~ m l~ ~ 1� ~ 9~' forts on the part ot the con-
. 1981. _ . .
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StuIIipg COtmhtiCS t0 COLLSCTV6 . . - B83~C ASSI]TIIp~OAS
energy, to refram fmm n~shing t 1~ Budgetary outlays: fy 19a0-42.59 trillion yen
to OPEC members for In- ty 1yg1-r16,8p trlllion yen
Cre&sed a~pply. l2 ~ Value of public works fy 1980-6.66 Wlan yen
A tblyd factor ot concem is ~t~: fy 1g81.-~,=p trDlioa yen
the growing Instability in the Q3~T~ ~~n for tp 19a1-150 bNion yen
area ot Wtemationat finance. ~ inve.stments: '
The~^e !s no aeed to dwell here (4 ) O~cial disco~mt rate t~?19~-i.75 peneat
on the maasive imbalance in the ~yearead level): ~ ty 1981-6.T perceat
wodd bslance of PaY~~~ IS)Importpriaofcrudeo~ ' fy1980-~1.4t/bbl
stcucture that resutted from the ce~toms clearance basis) : ty 1961-39.E i/bbl .
OP,EC prke hikes. t6 ) Volume of cn~de o~ imports: fy 198o--257.7 m71. kls.
OA the a~e hand tt~re aTe the fq 1981-2641 mU. kls.
OPEC countries with their (7)Ye~/dollarexcbangerate fy198~-219.75yeaperdollar
abundant ~ assets. aad on the , tavera/e tur the yeu) . tY.1881-'D1.07 pea per dollar :
other tbere ar~ the nono~7 ~
develaQing camtries wit6~theU
heavy burdea of aa~unulated
extern~l debts. and the
situatba is one of struct~al
and cyronic aveslending and
overborrowing betvreen
aati~as. Gfven coati~ufng in-
tlatioa and repeated increases
in crude al prices, there is l~ttle
hope of an improve~eot in
these condltions.
In summary, the Japanese
economy in final 1981 is es-
pected to follow a relativdy
strong recovery trend.
However, it ls lite~q to be a
t~ecavery witbout any oi the
normal buoyancy that ac-
_ companies a period oi ex-
pansion. hloreover, maay
elements of iu~certainty cloud
over the world today, all af
which hold seriaus implicatioos
for d~.welapme~ats in Japan.
'fhus, fiscal 19811s e~ to
be a yeat' oi low vital pre.s~u`e
anid lxkl~ster developtn~ts
- withln and hi~ winds blaro~ag
for the Ja~at?ese ec~oinY �
COPYkIGHT: Mainichi Dailq News, 1981
CSO : 4120
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ECONOI~4C
EDITORIAL NOTES BENEFITS OF STRONG YEN TENDENCY
Tokyo ;~SAINICHI DAILY NEWS in English 9 Jan 81 p 4
[Editorial: "Rising Value of Yen"]
[Text]
The va~ue~oi the yen against therL'.S. dollar has
risen rapidly. For the first time in two years,. the
dollar-yen exchange rate temporarily broke the
psychological barrier of 20o yen on the Tokyo forejgn
exchange market. The Bank of Japan intervened to
- check a further rise of the yen's value.
Several reasons can be pointed out for the rising
value of the yen. Basically, many nations have put
confidence in Japan's economic performance which ~
has survived two oil shoc;~s and has c~ntrolled in-
flation while attaining a relatively high economic
growth. In addition, the high interest rate in the
United States, which supported the strong dollar, has
declined somewhat.
A strong yen has both favorable and unfavorable
. effects on the Japanese economy. We want to em-
phasize the favorable aspects. A strong yen will help
Japan keep prices stable because it wiIl enable Japan
to import natural resources and foods at relatively
- low prices. Accordingly, we believe that Japan must
establish economic and industrial structures which
can tolerate a relatively higher value of the yen.
The foreign exchang~ market fluctuates at the
spur of the moment. Speculation ignites further _
speculation. The central bank has intervened to
prevent a deterioration of such a trend. Past ex-
perience tells us that such intervention has been
ineffective.
Some people believe that the value of the yen
would rise to 176 yen per one dollar, the figure which
was recorded in Cctober 1978. Many consider that the
Japanese economy has become resilient to such a
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fluctuation. But an excessively rapid dollar-yen ex- ~
change rate fluctuation would ~cause w3e.xpec:ted
results in the Japanese economy.
The government authorities may resort to the last
measure - stipulation of an "emergency" regulation
in the new forei~ exchange law which came into
existence last December. We do not support the idea
of resorting to th~ "emergency" regulation because it
will invite international criticism that the Japanese
market is isolated. We hope that the Japanese -
government would not rea~t too sensitively.
. We support the cent~'al bank's intervention in the
market to prevent a rapid rise of the value of the yen.
At the same time, we propose another reduction of the _
discount rate. The reduction will remove the pressure
to buy yen because it will hdp to curb the inflow of
speculative money to Japau. Moreover, it will
stimulate the domestic demand, especiallY indi`ndual
spending and housing construction, because the
higher value of the yen will lead to a decline iu ex-
ports. ~
We know that the Bank of Japan cannot easily
reduce the official bank rate at this moment. As
pointed out by central bank Gove~nor Haruo
Maekawa at his latest press conference, the fluc-
tuation has been excessive. Coincidentally, the
current interest rate of the national bonds in circula-
tion is higher than the interest rate of the newly issued
national bonds which are now open to subscription.
The tendency indicates that the national bond
rnarket is in a"glut." The large vo~ume of nationaa..
bonds has become an obstacle to the smooth and
flexible financial policy of the government.
The timing for implementing the financial policy
is very important. The government and the Bank of
Japan must always be ready to put a flexible policy
into practice. For example, they must unify the in-
terest rates oi various financial institutions, in~ludin8
post otfices which are under the supervision of the
Posts and Telecommunications Ministry.
Due to international and domestic reasons, Japan
has relatively small room ir1 which to choose its
financial policy. For this spec~fic reason, the
government and central bank officials must cope with
tlie situation wisely.
We believe that the high value of the yen against
the dollar is a favorable phenomenon for Japan
- cecause it has a favorable effect on stabilizing prices�
We hope that the economic circles wilI take some
measures that will enable the general public to share
the benefits oi foreign exchange pmfits, if the present
strong yen tendeacy continues. ,
~ COPYRIGHT: Mainichi Daily News, 1981
. CSO: 4120 40
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ECONOMIC
FINANCE MINISTRY'S VIEWS ON ENERGY POLIGR, ITS BUDGET GIVEN
Tokyo ENERUGI FORAMU in Japanese Dec 80 pp 95-98
[Original title: "The Ministry of Finaace: the Safekeepers Who Gave Special Treat-
ment to Energq")
[Text] Deepening Sense of Crisis Among Finance Ministry Officials
The Ministry o� Finance publishes FINANCE once a month as a public relations maga-
zine. Appearing in the January 1980 issue of FINANCE were the results of an in-
teresting opinion poll. On the theme of "The Convulsive, Obscure 1980's," the
magazine quest~.oned 231 persons on the issues of the 1980's, the nature of economic
policies, and the world situation, and compiled the results. Three groups were
questioned--knowledgeable individuals, retired officials of the Ministry of Finance,
and present employees of the Ministry of Finance. Each of these groups made up
approximately one-third of the total.
An interesting result of this survey was the answers to the question, "What is the
most important issue in economic policy?'~ "Energy" accounted for an overwhelming
35.7 percent of the responses. 1'~umber two was "inflation" at 29.9 percent and
number three was "rebuilding of public finances" at 26.8 percent. Some important
. replies were recorded in the magazine. Uader Secretary of Administrative Affairs
Takashi Tanaka said that the most important issue for the 1980's was "spiritual
transformation and energy measures" and pointed out that in order to develop the
necessary measures, "a great deal of time is needed. Everything depends on educa,
tion." The importance of the energy problem was also 3ndicated by Sagami Takehiro,
official in the Regional Finance Bureau. Hiroshi Yoshimoto, director of the Securi-
ties Bureau, Eisuke Hamamoto, budget planning official, and Sugio Hatanaka, manager
of the Foreign G~rrency Section of the International Finance Bureau. _
The Ministry of Finance has the 3mage of working despereately to rebuild public -
finances and hold down expenses in order to overcome a severe burden of debt.
Actually though, it places more importance on the energy problem than on f inancial
rebuilding. At any rate, the results of this poll show that many Finance Ministry
off icials have an exceptional amount of interest in the energy problem.
Full Amount Granted for Energy Budget
So then, with this awareness, how is tfie Ministry of Pinance dealing with the
energy problem? This is hard to know. MITT is directi,ag energy conservat~on
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policies in industry. 'I'he Foreign Ministry participates in international c:onfer-
ences on energq. The Transport Ministry provides guidan.ce for improvement of
automobile fuel economy and the Science and Technology Agency promotes the develop-
ment of nuclear power. The important policies of these other ministries and agencies
are clear and evident, but the role of the Ministry of Finance is a more passive one
and its position is less clear. Because of this we tend to see the Ministry of
Finance as a miser guarding the money box and, even with respect to the energy
problem, cutting out a big portion of the budget requests of MITI and the Science
and Technology Agency for alternative energy source development and new energy
development expenses.
What sort of response is the Min~strq of Finance making to the energy problem?
Looking at the ~udget for 1980, we see that "energq related expenses" are given
top priority. This budget was formulated right in the middle of the "financial ~
rebuilding" campaign carried on by literally the entire Ministry of Finance, and
the size of the budget was held down to an increase of only 10.3 percent over last
year. The growth of general expenditures, except such mandatory expenses as na-
tional bond expenses (expenses such as interest payments on government bonds) and
allocation of regianal allocation tazes (32 percent of income taxes, corporate _
taxes, and liquor taxes), was only 5.1 percent. This is the smallest increase in
the budget since 1957. It is an extremely austere budget.
In the budget, energy related expenses are set at 424 billion yen, an amazing 30.2
percent increase. It is a tremendous increase with economic cooperation expenses
held to a 17.5 percent increase, social welfare to 7.7 percent, and education and
culture to 5.2 percent. The total budget for eaergy including special accounts is
740.7 billion yen, a huge 30.9 percent increase. The Ministry of Finance, after
difficult ~uggling of ineager revenue sources, has given a fat budget only to energy.
This liudget is certainly a concrete response consistent with the energy conscious-
ness of Finance Mini~try officials.
Of course, the Ministry of Finance will take a tough stance toward MITI, the re-
questing ministry, during the process of budget formulation. MITI initially
_ presented a new tax plan with levies on both petroleum and electricity. The idea
- was to collect a new tax and use it as a revenue source to promote development of
alternative energy sources. However, the industrial sector was f iercely antagonis--
tic to this. The Keidanren and other business organizations stated their opposi-
tion to the LDP on this and "MITI was left stranded. The Ministry of Finance re--
~ jected the MITT proposal because, "Oil is already taxed heavily and there are many
problems involved in creating another new tax."
Then MITI set its sights on the petroleum tag which is rising along with increasing
oil prices. Among types of taxes, tRere is the specific tax levied according to
volume and the ad valorum tax levied according to price. The petroleum tax is an _
ad valorum tax. Under this system, if OPEC (Organization of Petroleum Esporting
Countries) raises the price of oil and, in response, the domestic oil campanies
raiae their prices, tax revenues will go up.
In 1979, the petroleum tax revenue was initially estimated to be 1.78 billion yen.
However, because of the Tranian revolution, the price of crude o31 ~umped to over
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$30 a barrel very quickly and the tax revenue for 1980 is expected to exceed 400
billion yen. MITI has demanded that this be used for development costs of alter-
native sources of energy.
There are some taxes which are ob~ect taxes with specified applications like the
gasoline tax which can only be used for the highway budget. However, the petroleum
tax is an ordinary tax with unrestricted use. Therefore it can be used for any
purpose ~ust like income taxes or corporate taxes, and it is impossible to demand
that it be used for energy ~ust because it was levied on petroleum products. When
, the national finances are under a great burden of debt and f inancial rebuilding is
an urgent problem, MITI itself did not expect to obtain verq much.
However, the Ministry of Finance responded with almost the full amount asked for.
F`urthermore, it is reported that this was pushed forward secretly by the Finance
Ministry in unofficial negotiations with MITI. At the time, a Budget Bureau of-
f icial, Mr Kadoya (presently manager of the Legal Section of the Budget Bureau)
said, "It is a fact that we have ;iven special consideration to the energy budget,
to the extent that we may be criticized for being too lenient. This is simply be-
cause the entire Ministry of Finance was conscious of the importance of the energy
problem. Also, no matter how tight the financial situation is, we should allocate
money for necessary expenses as long as we have the means. In 1980, the necessary
expenses were for energy."
In the 1980 budget, an increase was also made in the electric power source develop--
ment promotion tax. This is an object tax to be levied according to the volume of
electric power used to promote the lagging establishment of power plants. Up to
- 1979, this tax was 8.5 sen per 1 kWh. MITI requested that this be raised to 30 sen.
The Ministry of Finance also approved this right away. As a result, the tax will
,
be quadrupled beginning this June.
Because the Ministry of Finance has provided these sources of revenue, a tremendous
advance can be seen in the energy policy for 1980. This Japanese energy policy
can be divided into three main parts.
First is the development of synthetic fu~ls to substitute for oil and new energy
sources. Of special mention in this area is the New Energy Comprehensive Develop-
ment Organization, created under a third sector system. This is an organization
for comprehensive promotion of liquification and gasification of coa1, nuclear de~
velopment, etc., which were previouslq carried out separately. 'fEie Ministry of
Finance gave strict orders to MITI for administrative reform, but eventually ap-
proval was given on the condition of abolishing the Coal Mining Industry Ration-
alization and merging the Small Business Promotion Corporation and the Small Busi~
ness Mutual Aid Corporation. The enterprise was started on schedule on 1 October
this year and took ies first sure steps as a central organization for alleviating
dependence on oil in the future. MITI certainly played the main role in creating
this organization but without the "understanding the approval" of the Ministry of
Finance it would not have succeeded so well. No one would deny that the Ministry
of Finance was cooperating behind the scenes.
E
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The second important measure is the petroleum stockpiling plan. A ma3or long-
term issue for Japan is promotion of alternative energy sources and reduction of
dependence on oil, but this is certain to take time. Therefore, expansion of
pettoleum stockpiling is an essential policy for national economic security. A1-
though it is not well lrnown, the Minietry of Finance is allowing almost 20~ billion
yen in grants-in aid to pay interest for petroleum stockpiling in 1980. Lhider this
syetem, interest is supplemented up to 5.5 percent. This was 5 percent through
1979 and has been raised by 0.5 percent.
What effects will this bring about? It is difficult to prove quantitatively, but
it is certain that the Japanese petroleum campanies have been motivated to stock-
pile oil. If the Ministry of Finance had lowered the level of this grant for in-
terest on the basis of f inancial difficulties, the present stockpile, good for
more than 110 days, would not have been created. The cutback in the oil supply
due to the Iran-Iraq war would probably have had a greater effect and caused social
unrest.
The third energy measure is energy conservation. This can be little influenced by
f inancial measures and greatly depends on individual effort by the industrial sector.
However, there is a budget included for small items such as energy conservation PR
expenses and operating expenses for guidance. It is reported that the Ministry of
Finance has approved most of the requested amounts for these items.
Problems of Formulating Financial Measures
At this point the problem is where to go from here. Until recently each bureau or
section of the ~Iinistry of Finance has worked separately unless an especially im-
portant policy was involved. Aowever, several years ago, a position was created to
coordinate everything relat ed to the energy problem. This post is held by a coun--
cilor from the minister's secretariat. His function is to work out policies from
a long-range point of view and coordinate the response of the entire ministry. The
present holder of this position is Councilor Miyamoto. With a small staff, he is
continuing to do slow and steady but wide-raaging research.
Here, the technical aspects of direction of energy development are not considered
centrally as they are by MITI or the Science and Technology Agency but a theoretical
framework is being built iri a thoroughgoing way for advancing energy policy most
eff iciently. For example, which is the most eff icient way to develop alternative
energy sources, to spend money on liquif ication of coal or emphasize nuclear de-
velopment? Hearings are constantly held with related ministries and agencies and
a watch is kept on overseas developments for optimum allocation of resources and
energy balance.
Councilor Miyamoto says, It is clear that revenue sources will cont~.nue to tighten.
- In the 1981 budget, it Grill probably be impossible to approve an increase of 30
percent for energy alone. Because of that, we must come up with more ideas on how
to increase productivity and use public funda weJ.l. It may turn out to be unsatis--
factory from the viewpoint of other ministries and agencies. However, we must make
our decisions inside the framework of the entire national budget. In terms of order
of priority, however, we have no intention of changing our previous policy.
- COPYRIGHT: Denryoku Shimposha 1980
9651
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ECONOMIC
FOREIGN INVESTMENTS IN JAPANESE SECURITI~S MARKET INCREASING
Tokyo BUSIIQESS JAPAN in English Dec 80 pp 17-19
~ Text ~ p~ordin to informed sources, in-
g large amounts as 5953 rr?~ion in Iune
vestments at the Tokyo securities msr- and 3958 million in July, reaching
_ ket by foreign investors exceeded amounu close to 51,000 million.
310,000 million in the first nine 'Though these investments slightly de-
months this year, surpassing for ihe clined in August and September, the
first time those at the New York net buying from this January to Sep-
mazket which has been reg~rded as the tember exceeded the 5~,000 million
largest market in the world for foreig~ mark.
investors. This is largely because those Some city banks assume that the
in oil producing countries who are total amount of the free yen (the yen
mana~ng investments of oil dollars that can be freely exchanged with -
have become more enthusiastic about forei~ currencies) held by non-
investing in Japanese stocks and securi- resident foreigners reached some
ties for the following reasons: (1) the $q~~pp ~on or ~1,100 billion in
current basic trend of hig~er yen yen during the first nine months of
quotations is expected to continue; (2) ~S year. Together with their invest-
the technical levels of Japanese enter- ments in Japanese stocks, foreign in-
prises are so high that their business vestments in Japan exceeded the $10
results are drawing an upward curve; billion level for the fust time.
and (3) Japan's political situation is Meantime, the net buying of U.S.
stable. Experts foresee that once the stocfcs by foreign investors at the New
war between Iran and Iraq ends, yen York stock market totaled only
quotations will become still higher and ~2 563 million and that of U.S. bonds
investments by foreigners will con- and debentures amounted to 52,507
tinue to increase, raising the position m~7lion in the first six months this
of the Tokyo investment market still y~~. ~ough the figures were available
higher. for these six months only, Japanese
According to securities circles, the securities circles explain that when
net increments of stock investments ob~~g ~e moves at the stock and
by non-resident foreigners mainly with debentures markets, foreign invest-
oil dopars were $1,040 million in m~~ at these markets have dwindled
August and $1,028 million in Septern- and deposits in dollars also tend to
ber (on the basis of reports from the decrease. As a result, as for the period
121eading general securities companies from this January to September, the ~
for September), surpassing the 51,000 rokyo mazket became the largest maz-
million level for two consecutive ket in the world in buying by foreign
- months. As a result, foreign invest- investors.
ments in Japanese stocks sutpassed 'I'(te scale of each transaction in
53,700 million in the ~ust few months ]apanese stocks and debentures at the
this year alone. Ihe net increments of Tokyo market by foreigners is less
foreign investments in Japanese bonds than half that at the New York mar-
and debenture~ also reg}stered such ket. But Japan's internadonal pay-
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ments balance turned favorable in Sep- at the end of last year to mae than
tember after a lapse of 15 months. 6% this August. As the ratio of Deut-
Securiries circles, therefore, are bullish ~hemark assets in OPE~'s total fund
in their outlook by saying, Except management in foreign currencies is
fur OPEC coun~ies, Japan is the only ~umed to have reached some 12%,
country that has the potential to have Japanese securities circles are still bul-
a surplus in the international payments ~h in outlook: they are forecasting
balance. If the yen quotation con- ~t mae oil dollars will flow into the
tinues to go higher despite the second-
ary reduction in the Bank of Japan's Japanese market.
official interest rate, the scale of each The balance of free yen deposits by
purchase of Japanese stocks and de- non-resident foreigners, which con-
bentures by foreigners is expected to tinued to increase from this March, has
become close to that in New York." begun to decrease from this October.
The current surplus in th~ inter- The inf]ow of foreign funds into the
national paymenu balance among lapanese stock market - there was a
OPEC countries in t980 has reached ~rp increase this August and Septem-
some $120,000 million, while the ac- ber - also sharply decreased in the
cumulated surplus has surpassed middle of ~October despite the bullish
~200,000 million, according to securi- forecast by Japanese securities circles.
ties circles. This is due to the fact that fonign
Kuwait is enthusiastic about invest- depositors and investocs have deceler-
ments in stocks in particular, and is ated their fund management in yen
regarded as having bought some of the unexpected long,
$2,000 million in Japanese stocks and drawn-out war between Iran and Iraq
debentures this year alone. and the intensified oudook that inter-
Most of the EDR (European De- est rates in Japan will become lower.
positary Receipts) issued by Nippon The Japanese government and the
Miniature Bearing Co. on September 4 Bank of Japan, however, re~rd this
this year were purchased by Kuwait seemingly unfavorable phenomenon as
investors, and those to be issued by temporary, since the fundamentals of
- such Japanese companies as Uny and the Japanese economy, such as its
Clarion are expected to be purchased u?~~tr~~ P1Yments balance, are
by them. generally improving. Both institutions
The ratio of yen assets to the total believe that foreign investors have not
assets in foreign currencies heid by oil yet lost their confidence in the Japa-
producing countries increased from 1~'o nest currency.
COPYRIGHT: Nikkan Kogyo Shimbunsha 1980
CSO: 4120
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E CONOI~Q C
JAPAN AIR LINES REPORT SIGNIFICANT INCREASE
_ Tokyo MAINICHI D~ILY NEWS in English 14 Jan 81 p 4
~Article by Hideo Matsuoka]
~Text]
ToWacd thee t year~n~ aad of tbe prime min~ster's trip. At
througb Neav Year, the New that time. the yen was valueless
Tokyo International Airport at ~ts~de oj ~apen. Nobody cared
Narita was awas6 with to have the yen In exchange for
, Japenese who were leaving tor. 6is national currency.
and returaing ttom vacatbn Now the y~ is a star per-
abroad. 1Every ~ day, 16,000 (or~ on tpe worid's currency
Japacese to~ists either left or markets. A receat report by a
~ ~ ~'Po~. ~ major Britis6 securities
survey ~y Japan Ait Lines comP~Y Predlcted that the yen
showed the Japanese depar- wou?d be the must attractlve
tures and arrivals at Karita amoag We world's major
~ over the year-end to be 8 P~'- . currencfes in the oext s'vc
cent above last year. _ months to a year. In the last
Fli~ts to Guam aad Sa~pan ~ qnarter century, t6e yen
drew a heary load of family changed fr~m a mere scrap of
groups. Not.a few on flights to pa~er to a cun~enc.y coveted by
Eumpe w~re traveling for a everyooe. 1be yea's rtse is
taste of Alpine ~ skring. Better ~ impressive to me aPter se~ing
than anyt6ing els~, t6ey (ts humillation on the European
represented an aiflue.at and moaey mar~ets 27 years ago.
peateful Jap~n� . � The yen has started on a r~eew
This reminds me ~o[ my ex- ciimb again. As the dollar has
priesce 27 years ago. In tLe ~nne available for less than ,
autumn ot 1956, Prime Minisier Zpp yen, ~ going abroad Is
Shigecv Yashidar went aa a two- becoming ever cheaper.
moath taur oi Earc~pe tor tatks ~~g an ovec~eas trip no
with ~uropean leaders. Only ~8~' a big c3ecision
seven eeporters from as many forthe..~apanese.
newspaper companies ac� g~ I~ p~tected by
companied the prune minister. ~ statute of limitations. I
,Yoshtda's tau was an im- admit that, in acco~paaying
portaat event for the Japac~ese Y~~ ~ hls Eumpean tour, I
presg, but aewspapers did not ~~t ~~e Dlack-
- have the dollars. To put it more .~a~ ~e dollars ,
correctly, the country could not ~lied by the Mainiehi were
afford to spend hard-earned ~ e~~. ~ blacl~arket
dollars [or newspaper ooverage price was 400 yen, per doilar,
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compared to the otifcfal rate ot remembers how it was in those Peaceful N8ti0n
360 yea. Still, t was thankful years. No particulaz' sector or
that 400 yen bought a ~~s are to be credited for Along with the rnsh of
dollar. Now the dollar is worth ~ miracle, lt is the con- overseas tours, the traditional
only halt as muct?. m other centration of general power by New Year visit to shrlnes and
words. the yen has doubled its the nation as a whole that ~pl~s is another indication of
worth. What- particularly d~r,escredit a peaceful Japan. According to
delights me is that anybodY ~ present state of the a~olice Agency survey,. 80
would now ~ take the yen ~t~ ~~~llapse easily million paid a New Yea.* vis?t to
anywhere. in the world. Banks because it is supported by the shrines and temples in the first
will chanBe' We yen into any , combined power of the whole � four days of 1981. The filgure e
currencies. natio0. ?~d of the power of a an all-time high. DesP.
~ Int'1 ftespect limited sector ot the ~atioQ. If it fervent prayers qf the nation,
~ is to collapse the cause gods and buddhas !et the n~tion
Japan tops the world ~ probaWy will be~politica:� In a lose World Waz II. Some openly
in the number of auto- rece�t P~~ �P~0� P~ll by t6e ~mpl~ ~~~t ~~~�0~
~Mainichi Nervspapers. the . of prayipg'" From a different
mobiles mauufactured. were ~y however, it may b~
It has also topped the thai and buddhas
associate with t6e word arBued 8~
United States in crude �~conservative." Aa over- letJapanlosebecausetheYs~W
a tutnce Pmsperity in the lasing.
steel production. whelming ~ajority ~ ~~e m~~ ~ 1~ Japan
"connivance, corruption,
T~~ ~ unreliableness, deceit, and lose� .VI'bY no~ teep paY~g
not all. In a receat survey o[ ~~~ents that denote homage to them every New
national potentials, analYzed moral depravity." Thee fact that ~ Yeai''
into economic arrd other tac- a cooservative party that has What do New Year visiWts to
tors. Japaa scored most amon8 lost the tn~st ot tbe nation has shrines ~d tempies pray for? _
t h e 20 W e s re rn m a j o r power is a miracle What beaeGt do tbey expect
ecoaoanies. ,The tinding may in itselL UnWce :he econqmic from their visits.' Do t~ey go to
sound "itiy~~ W some. But it miracle, the political miracle ~e places just because many
apparenUy is a measure ut the i o r m s J a p a n' s b i g g e s t oWers do? Tbere are not many
international respect for ~,a~~~ � ~at can mopilize 20
Japaa's national polentials acad, The PoII re.spond~ts Picked . milllon Japanese every day for
as such, s~ould constitute one of ~~it6ets as "unreliable, four days. This too is a product
the causes that push up the Ye~� for . reformist of a peaceful Japan.
Last year, for reasons con- parties. At leasi the [ emp6asized a peaceful
nected with my worfc, I dId ~p~non parties are spared the rush of
some research on the ~~~t Japan by citing
Katayama Cabinet of t947~8. overseas tnurs and visits W
corrnption. Like the coo- ~d ~mples over the
That was the time Wheq ~~Y seriratives in power, these year-end aad New Year
dead bodies of siarved peuple p~es have beea I wanted W compare
Ilttered the tilth�covered ~~~~~e~� by the ~a~~ of Japan
passageways oi 0~6aka, NaBaYa nation. This sb~ws . that aU with the Eurnpeaa situation�
and other major statioas.o~.the� political parties canstitute
Japanese National Railways. ~tive elements in Japan's Ac~ording to a high govern- -
The whole oi Japan was star- ~cs. We oeed ment offkial aho returned to
.ving tuen. Nvbo~Y then could 8~~ ~~S to Japan in Ikcember frora an
foresee today's economic for our ~ of Europe, the
P~rity in Japan. Today's national interest. ~
state of the nation may well be situation ther~ atas tight as a
called a miracle whea one
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dnunhead over the deveta~r pri~ ~~d to be fal- -
ments in Poland. He said his ling in West Germany. I had�
talks witb Eurupean govern- he~ that land prices had
ment otficiaLs were dominated there, but it was ~
by Polish topics. with ecooomic ~ first time I was toid t~at
matters shoved to the~ ~y ~ve started W go down.
background. The prepoo- T6is too is a Polish ~
derance ot Polish topics could p~~et invasion -
have beefl due to the tact tbat ~ of~ Poland, when it rnmes, witl� -
the whoIe of Europe feared an y~t ~ -
imminPr+t Soviet invasion ot ~~y, ~~atand sctusl Invai _
Poland at tbe time of his visit. sion are two difterent things.
Every ofSdal he talked to, he g~ p~le worry ahead ot
said. was vissbly worried about reality. Aa advance pessimism
wbat would happen in case ot a .~~~y cuts the prices of
~ Soviet 'snvasisrn. Tebsion was land. .TLe tumble oi the Wesi -
everywhere to be seea. 6e German maric in December
~Po~ was not all an economic -
"Llpon comiag home, I P~~~� . It was aL9o a�
my ~ poIitical' and -Pol�sh
Japan is Heaven a mpny P~meflon.
ways,,, he said. By "in manY . Zbere is ~othing wrong about
ways," 6e suggested a variety Japan Deing. Heaven-even of
of elements such as one might some dubioas sorts. Japan~
cboo~e-an economk Heaven, sboiild rematn a Heaven. To -
Heaven ot peace, coa- keep Japan a Heaven, it Is�
servatlves' Heaven, Heaven tor important to do everything to
the middle c,lass, Heaven for aVoid its involvement in war. To
_ corniptive elements, or what ~day out of war, we must Iceep
have you. Uadoubtedly, Japan waGcD on our narioaal poiitics, �
is Heaven compared with, ~ w~icb tends to t~ a defecEive
Eurapean co~tries., , gei~e in t~e natiooal system..
CGPYRIGHT: MAINICHI DAILY IdIEWS 1981
, CSO: 4120
,
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ECONOt~ff C
CONFLICTING VIEWS NOTED OH PROPOSED REVISION OF BANKING LAW
Tokyo MAINICHI DAILY NEWS in English 19 Jan 81 p 2
[Editorial: "Bank Law Revision" ]
[Text]
The proposed revision of the Banking Law bas
given rise to sharply conflicting views between
banking circles and the Finance Ministry over the
_ business operatxons of ordinary commercial banks.
` Due to the opposing views, revision of the law,
_ being carried out based on the June 19i9 recom-
mendation by the Financial System Research
Council, has I.~een hampered. The mini~try intends to
send a law ~evision draft to the Diet in mid-March.
- The differences of views concern several issues.
~ In the revised law, the ministry seeks the legality
of a finance minister's "right to advise" ~commercial
banks to improve their business operations-a step
the miniater will take when he sees it n~cessary to
protect khe depositors' interests.
ThE banks, which look ~ upon this as government
intervcntion in their business, vehemenUy oppose the
idea, arguing that such a concept was not contained in
the council's recommendation. ~
The banking side also strongiy-'� ~opposes . the
ministry's plan to write into a law the need for im-
posing quantitative restriction on the banks' large
laans to private corporations. The restriction, now
- being enforcesi under a guideline provided by the
director of the ministry's hanking bureau, catls for a
ceiling on such a loan so that a bank's extiended loan
_ tu a company will not exceed a certain percentage of
- the bank's owned capital c far instance, 20 percent in
the case of a commercial bank) 'The banking side
contends that the m~asure itseif was originally
temporary in nature, having been imposed when the
r.~ti~n's economy was gravely threatened due to the
1973 global oil crunch. It opposes the indiscriminatory
imposition of the measure by enacting it into law.
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Besides these Conflicting views, the most serious
problem concerns a bank's dealing iii the securities
business. Under Article 65 of the Securities and Ex-
change Law, all financial institutions are prohibited
- lrom dealing in this business. The advisability of this
- particular provision has always been the subject of a
heated controversy between the banks and securities
campanies and the planned revision of the law this
time has further heated up the controversy.
In the law revisiori, the ministry takes a stand
- allowing a ba~4c to deal in the securities business,
- although this is strictly limited to the sector.of public
- bonds, by defining the business as "a service" that
the bank can alsn provide to customers. In this case, a
_ bank wishing to engage in this business will be
required to ob~ain a license under the existing
SecuY-ities and Exchange Law. .
' Banking institutions, however, are dissatisfied
and disagree with the ministry's stand. They argue
that dealing in the securities business,has innerently_
~ b~e~n a"concomitant" of t,he banking business,
defined under the Banking Law. They even go so far ~
as to say that the ministry's posture in this regard will
reduce the valu~ of the Banking Law itself.
- The securities business they mention conslsts of
underwriting, flo~ting and dealing in negotiable
securities, and the acceptance of th~ir balanee.
Learning a lesson from the financial crisis of the
past, a bank in the United States is stricf~y banned
from engaging in the securities basiness or a
securities flrm in banking services, althoug~t finan-
cial institi:tions in Europe are allowed to cariy out
both the banking and securities businesses.
It will be logical to assume that banks in Japan
will also be allowed to deal in publie bonds in view of
the fact that Article 65 of the Securities and Exchange
Law is a"copied" version of the pertinent article of
America's banking law. ~
� Alsu, we believe the bank's ~enetration into the
- field of public bonds is desirable from the viewpoint of
nation~l economy. It will open the way for correcting
= the government's '~near compulsory" allocation of
national bonds to the banks and the restrictions im-
posed on their selling.
Secand, it will ease the r~ajor securities firms'
monopoly in securities dealings, leading to a more
logical price formation in the public bond market,
which will benefit the subscribers.
As the Financial System Research Council has
pointed out in its recommendation, the role the bank ,
will play in absorbin~ new public bonds is bound to
become large as the fund raising demand in the gublic
sector will remain strong. ~ ~ ; ~
COPYRIGHT: Mainichi Daily News, 1981
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ECONOMI C
INDUSTRIES SHOW GREAT DISPA.RITY IN DROFITS REPORT
Tokyo BUSINESS JAPAN in English Jan 81 pp 24-26
~TexC~
The interim account settlements as ~dustries listed on the exchange's first
of last September of major enterprises section are expected to enjoy~ an aver-
listed on the first section of the Tokyo ~e recurring profit with an increase
Stock Exchange show that while half mte of nearly 50`~'0 over the previous
~ of these enterprises enjoyed an in- }~~f-year term, registering an historical
crease in recurring profits, the remain- fo~~o~g previous term, the
ing half suffered from a decrease ~onomic institute says.
in profits. As steel, oil and power ~Sp~te such good results in general
companies gained hugt exchange ~ recurring profits, their business
profits, these enterprises thoughout all profits suffered a S.SR6 decrease re-
industries enjoyed a 50% increase in flecting that their favorable account
- recurring profits on the average over uttlements were due mostly to a
the previous six months. Except for marked increase in exchange profits.
the power companies, even ncurring It must be pointed out also that
profits increased by 7�k.on the average, W}We 173 out of the above enterprises
a record high. When closely exatnining surveyed increased their recurring
the contents of the account settle- prot~ts, the remaining l75 suffered
ments, however, business profits with from a decrease in such profits.
exchange profits deducted are found industry-wise, the manufacturing
to have decreased, indicating that their ~dustries enjoyed an increase of
account settlements substantially re� ~0.696 in recurring profits on the
flect their stagnant business perform- average, and the non-manufacturing
~ ance. As for the near future, their industries decreased their recurring
account settlements for the next half- profits by 6.496.
year term ending next March are Among the manufacturing indus-
expected to show decreased recurring tries, the pulp and paper industries
profits and their full-scale recovery enjoyed a 9996 inerease, the oil indus-
from the current stagnancy is expected try doubled its profit, and the steel
- to start only Irom next September, industry increased its recurring profits
According to a recent survey by the by 24~Jo, compensating for the de-
Wako Economic Institute, the interim creased rofits in the textile, chem~ca~,
account settlements of 348 major p
ass and nonferrous metal industries,
_ enterprises tisted on the first section of Y~
the Tokyo Stock Exchange indicate leading to an average 20% increase in
that their sales increased by 3.496 and ihe basic materials producing indus-
their recurring profits by 7.89b o* '~e In the rocessin industries, where
average over the prcvious hali�year ~ere was ~o enterprise as in the
term. materials roducin industries that
In addition, if the results of the s~ly ~aeaseJ gits profits, the
account settlements, which are not
- available yet as of this writing, ue incr~ass ir? profits was only 2.79'0.
included, the enterprises in all the In the nonmanufacturing sector, all
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the enterprises except for thosc in the
warehousing, communicatan and serv- 'rhe interim account settlements are
ices register~d a decrease in their seemingly favorable in general, but in
profits. fact reflect the depressive trend of
The Nikko Research Center says, business activities. Nevertheless, the
"7'he increase rate in their sales went figures represented in the accounts are,
below the expected rate by 2%, and no doubt, an historical high far surpas-
their profit from operations (business sing early expectations. The following
profits minus substantial interest rates) facton pn be cited as the major
decreased, in this sense, their interim reasons for these good results:
account settlements reflect the stag- The value of the yen, which stood
nancy of business activities in gener- at ~249 against US$1 at the end of
a~�" March 1980, sharply increased to
The depreuive trend of the eca ~212 at the end of September, leading
nomy is clearly casting its shadow on to high exchange profits for some
the non-manufacturing sector with the industries -~f90 billion for the steel
exception of the power industry. As industry, ~160 billion for the oi)
the movements of goods slowed down industry, and ~110 billion for the
due to the depression, land transport power industry - totaling as much as
companies decreased their profits by ~360 billion. The total corresponds to
25%, while warehousing companies 279'0 of the total recurring profit
increased their profits by I1%, reflect- gained in the previous half-year term
ing an increase in inventories. by a11 the industries listed on the first
While pulp and paper companies, section of the Tokyo Stock Exchange.
steel companies and power enterprises Exports in the first six months of
successfully settled their accounts with 1980 increased by 33`X~ over the same _
good results by transferring the rise in term of the previous year and by 129b _
prices of raw materials to prices of over the previous term, a major factor
their products, there are many enter- that brought good profits to the enter-
prises which failed to transfer in- prises. Exports of automobiles com-
creased costs to the prices of their pletely compensated for a decrease in
products due to the stagnant demand. domestic sales. Exports of machine
As for the reason why they failed tools, video tape recorders, integrated
to do so, Kazuo Matsumoto, managing circuits and single-lens reflex cameras
director of the Wako Economic Insti- also sharply increased.
tute, points out, "In addition to the Many enterprises sliced the fat off
off-setting of substantial earning their managerial burdens ir. terms of
power caused by increased consumer personnel, money and materials after
prices, the cool weather during last fust oil crisis, lowering the'u break-
summer kept consumers from buying. eyen point. Even though the rate of
Furthermore, private housing con- their operation was low, they could
struction was dull due to the high produce some profits.
interest rates of housing loan;. The All the enterprises exerted efforts
restriction placed on public invest� to save on energy consumption and
- ments also reduced end users' demands succeeded in reducing not only fixed
for various products." costs but also variable costs as well.
Both textile and chemical products Many cement and steel manufacturers
manufacwrers failed to transfer in- shifted from oil to coal for fuel.
creased costs to the prices of their P1ant and equipment investments
products, leading to a large decrease in that had been long suspended after the
recurring profits. Despite tfie increase fust oil shock started to inerease
in fares, airlines suffered loss as the from around fiscal 1979, compensat-
� number of passengers did not increase. ing for the stagnancy of personal
_ Shipments by steel manufacturers also spending.
decreased from the previous half�year Shipments of video tape recorders
term. reached some ~�500 to '~600 billion a
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Trends of Indices of Recurring Profits of Companies
Listed on the First Section of Tokyo Stodc Excharge
Whose Accounts Have Been Settled for the Period
Between March and September 1980 163
(100 for Sept. 1973) Second Oil Shodc
150 \144i 152
129
Fint Oil Shod~
AllIndustries~~~ 12p 112
100 _ 1 89
~ 94
/
SO f/ 74~~\ i
x 28 / Manufacturing Industrie~
5 ~(Based on a aurny by Wako Economic Research
5 Insdtute)
0
'73 .74 '74 ,75 '75 .76'76 '77 ~78 '78 ~79 ~79 ~80 ~80
S�p~ Mar Sept Mat S~pt INars~pt Mu ~Pt MuSept ~ISept ~r Se t
(esptimate)
year, surpassing the sales of color T'V the development of new products and
sets and rescuing electrical appliance reducing their production costs. -
manufacturers that were suffering Concerning the account settlements
from the cooi summer. The sales of for the current half-year term ending _
integrated circuits, numerically- ~~g March, no favorable results can
controlled machine tools and copying ~ expected due to the economys
machines also markedly increased. The ~agnancy, likety it will be only after
application of highly advanced elec- the term ending next September that ~
tronic technology is phenomenally ~e economy will show any sign of
strengthening Japanese enterprises in recovery.
the international market by f~cilitating
COPYRIGHT: 1981 The Nihon Kogyo Shimbun
CSO: 4120 -
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ECONAMIC
CONFLICTS ACCOMPANY INTERNATIONALI7ATION OF SHIPPING
_ Tokyo BUSINESS JA,PAN in English Jan 81 p 65
~Article by Susumu Ono, president, Nippon Yusen K.R.~
- [Text]
'~j'' HE U.S. economy, which had However, the domestic and inter-
- 1 experienced high postwar growth, national environment surrounding ~
ptunged rapidly into recession in early Japan's shipping industry in 1981 is
1980. Then the economic situation in anything but rosy. This year is ex-
principal European countries, includ- pected to become another period of
ing Great Britain and West Gecmany, ordeal for the shipping business.
began to show evident signs of a The first problem facing the indus-
downtrend. The international econo- try is the world economy. Although -
my as a whole thus entered a period of the U.S. economy is said to have
recession and slowdown. climbed out of the worst trough in the
- Tension in international politics has middle of 1980, its full-scale recovery
also been aggravated. The invasion of is likely to be delaytd through the
Afghanistan by Soviet troops brought pressure of inflation and the rising
- about economic sanctions by the U.S. interest rate, lt is hoped that the new
against the Soviet Union including a administration under President Reagan
grain embargo. American Embassy w?11 implement a powerful policy to
employ,~es were taken prisoner by realize a strong American economy.
student militants in Iran brin~ng rela� But immediate effective steps to
tions between the two countries to an harness inflar:on and to bring about -
all but irreversible low. economic recovery hardly exist.
Furthermore, war broke out be� OECD predicts that this year's
tween [ran and Iraq in September, growth rate of world trade volume will
1980. [ntemational politics and the fail to attain last year's figure owing to
economy surrounding the shipping the slowdown of real growth in all
industry is in turmoil. indusuially advanced countries. In
In spite of such a gloomy environ- particular, expoRS to advanced coun-
ment, Japan's shipping industry tries and developing countries not
achieved generally normal business producing petroleum are expected to
results last year. The tanker market register a very low growth. Exports
stagnated since the start of the year from Japan, which .could maintain a
- owing to a warm wincer throughout fair level for some time, will inevitably
the world and the vigorous campaign experience a setback.
cu economize petroteum consumption. The second problem is the trend of
The tramp market could sustain the shipping market. The Soviet Union
fairly good activity thanks to increased and China will continue to import a
shipments of coal and cereats. The targe volume of grain this year. Ship-
shipping market further benefited ments of coal as an alternate energy
from Japan's brisk export trade source will stay on a high level.
throughout the year ii~ spite of ~en On the o~her hand, the demand for
~ appreciation and aggravating trade fric- the transport of steel raw materials,
tion. which contributed to the uptrend in
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the shipping market in the past two tries. The possibility of OPEC coun- ~
years, is expected to slow down inevi- tries adopting a unified oil price has
tably because of the production cur- receded further beyond the horizon.
tailment in the steel industry in Both prices and supply of the Mid-
Europe and Japan. dle Eastern oil are in for a period of
A large number of bulk carriers, protracted instability, throwing an
newly ordered since 1979 after re� ominous shadow on the future man-
~ generation of the shipping market and agement of Japan's shipping industry.
the drop in shipbuilding costs, are Lastly, competition with the for-
expected to be launched in succession eign merchant marine fleet is destined
in 1981 and after. The future of the to intensify in international shipping.
tcamp market is extremely uncertain The walkout of Sealand Co. from the
since the demand for bottoms is tend� Conference in the North American
ing to deteriorate. routes and the disturbance of routes
The tanker market, encumbered as by the rampaging of non-Conference
it is with a large number of surplus ships are expected to create trouble
bottoms, cannot hope for a full re- for some time to come. Recovery of
covery this year in the midst of general freight rates and the stabilization of
economi~ing in petroleum consump- international routes will requir~ a still
tion and uncertainries in Middle East� longer period of time.
ern poGtics. Moreover, non-Conference activities
The third problem is the deteriorat- of Soviet and East European Btoc
ing profit and loss demarcatiQn of ships in the routes between free coun-
shipping business due to soaring oil tries and the cutthroat discount com-
prices, with strong apprehensions of petition disregarding a sound com-
dwindling corporate profit. The mercial basis are posing a serious
comparative stability of the oil supQly threat to the stabilization of liner
last year brought a temporary respite rouces. If maritime cargo movement is
to the ri~ing trend of ship fuel prices. to dwindle through a general slump in
- But the situation changed abruptly wortd trade, key routes centering on
after the outbreak of the war between Japan will inevitabty be exposed to
[ran and Iraq in Septembet 1980. ugly competition.
Prices of ship fuel skyrocketed im� [n the field of bulk cargo transport,
mediately. The conflict in the Middle developing countries have begun to
East has been dragging on contrary to demand national flag discrimination at
initial predictions. Fear of a short UNCTAD. Discussion by a group of
supply of petroleum has revived with specialists will start this year on this
the approach of the consumption subject.
season. Japan's shipping industry has sur-
Since both Iran and lraq have been vived a protracted recession following
extremely diligent in destroying each the first oil crisis. Although some
other's petroleum production facil- improvement in business performance
- ities, exports of oil from both coun- has been achieved, consolidation of
tries will not recover to a normal level corporate strength through the im-
for a long period of time even if the provement of international reserves
present conflict is speedily terminated. can by no means be termed adequate.
Under the circumstances, even the With the advent oE 1981 promising
smooth supply of ship fuel will be a great number of problems and hard-
' hampered in some areas in addition to ships, it is the urgent task of Japan's
soaring fuel bills. shipping industry to positively pra
The Iran-Iraq war has alsa a8' mote the consolidation of its inter�
gravated the dissension between che national competitiveness through
doves and the hawks in Arab coun- redoubled rationalization efforts. p
COPYRIGHT: 1981 The Nihon Kogyo Shimbun
' CSO: 4120
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ECONOMIC
- OKITA STATES FREE TRADE PRINCIPLE MAY REQUIRE LIMITS
Tokyo THE JAPAN TIMES in English 19 Jan 81 pp 1, 3
[Article by Yoshikazu Ishizuka]
\
[Text]
. Saburo Ok1la.~ tl~~ettF: ~riiles.~ su~h sis fhose on safe- ~ ~ T1~ t~ner' torei~ minister'
~r~sent's trade representacive, guards - emergency mea- . and promir~ent economist also
has indfcated that Japan may suces allowe~i by GATT to lim- said cootrol of in(lation is the
have to conslder fnternatfonal it ?mports to save the cbmestic toremast task tacing the new
arrangements that could to fr?dustry irom disruptkon by U.S. government. "We want to
some degree llmit the free sharp increases in imports - see a sira?g, stable dollac at
trade princlple !n Its automo- should be, worked out so that the earliest possible date" tor
~ btle exports to the Unlte~ trading ParUsers can observe ~ 6~ of tbe world econo-
States and the ~ - mY� '
European Com- He did not say "vvhethen c~ Excerpts from the coo-
mon Market. meant an "orderly market Ve~~~~
T h f s p o s s I b I y agreement ~ OMA by suc~ ar- Japan-U.3. trade and econom-
means volun- rangements, and his ottke cle~ k rela~lans
tary nwderatlon Ned he lavored an OMA. 'IT~e higt~er yen rate !n the
on the part oI Okita's statement, never- range o[ Y200 to the dollar
the Japanese, theless shows his perceptia~ since the beginning ot the year
_ short o[,an o[ff- and aMerstanding ot the need 1vi11 inhibit Japan's expor[s
ctal fhree-way tor some sort ot agreement on and enc.~ourage fmports. '~his -
agreement. . the conduct of trade in key irr wW help ease trade [rictions to
- Clkita made the suggest{ori dust~ies saich as automobiles. sorne deg,~"ee this year. Last
during a recent interview with He said he wlll discuss year's expoR surge was partty
'T'he Japan Tlmes, saying chac cbietly "various economic due to the yen's depreciatlon
whether~ or not tree com- problemg" with leading mem- to as 1ow as Y~0 tn the [irst
, peUtfoo stuwld be limlted in bers o! the Reagan admiNs- halt ot the year.
suct~ ~~key Industries" as au- tratbn wt~ he visfts. the U.S. But the automobile trade
tomoblles would have to be 1~ ~ will coatinue to be a maJor
Dlscussing JaQan-U.S. rela= problem this year, as the L'.S.
He said hc teels that .lapan's , tions under President-elect auWmo[ive industry has vari-
autocrwbile exports tn Uae U.S. Ronald Reagan's admtnis ous problems ot its own, such
as wdl as to the Gbmmon Mar- tration and Japan-EC relations as Uwse ot Chrysler. besides
ket wiN continue tp be a majoc 1n ihe new Year� Ok1ta also Japan's exports. There is a
Issue tht~ year and some k?nd said that how Japan and Eu- question of whether or not a
ot talks among these three c~aQe would.mspo~ to the U�S� cflmpletely [ree trade principle
trade partners wiil� become calt bnr "shared responsi- can be applled to the trade in
~l.~,, billty" in economlc. political such key Amehcan industrles
Although he stressed that and secucity tleids would be a as autorrabiles. I have the (eet-
GATT rules must be ob.ger,ved, mafor Lss~e and that Japan ing thal various probiems of
Ok1ta aJso said that, i[ neces- should be PnePared to articu- automabile trade will emerge.
sary, new arrangements or late what t6 can and.caru~ot do boch in the U.S. and in Europe: _
. ;a5 its sisare d r~oRSfbility. . and some kind o[ talks among
us will become necessary.
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~iT~e newU.S. Congress maY~ wfla value cansultations more on sa[eguards, should be ~
pass a resolution that woutd than the outgoing one, but on w~orked out. ~
empower the president to major issues and not on trUling For Instance. France. which
negotlate with Japan on the ai+- detafls. . restricts Japan's automobile
tomoblie trade - a slmilac res- , exports to 3 percent of the do-
Japen = de~e b~td~et -
olutlon that was pessed ~ast ~~~y~~ ~d ~rimeclfc market. complalns
December by the Houae but d~ very ltw~.- about Japanese auto exports to
kflled by the Senate. . oughly. What Is important other EC members. t~ecause it _
A group o[ U�S. Congress a~~ ~QeL is its ~ys I[ Japanese cars sales
~ me,y, ~1ast week in ~ i~ ~~d in 14'est Germany and Benelux
Tokyo) potnted out t1?at naclon- ~ Belgium. Netherlands and
judged only in terms ot the Luxembourg~ increase,
al SecurSty would be in Jeop- o~ ~roN~h in the Iis-
- a~Y ~t c:il 1981 budge[. I suspeM [he French car exports to those
' the U.S. tal! to malnLaln tl~ir L�S. ~vernrr?ent w~iil be satis- ~ntries w~ill decrease. This is
P~~~ ~siderably it it know's a prot~lem tor the EC as a
'a certafn level. Such Ilelds ir~- more about its contencs - how H'~ole. and not a problem in-
clude automobiles and certain it is spent. volving France alone. We want
a~ - the EC to come out ~~'ith a
It Is a matter oI (utuce studY Taska ot tlfe Reaga~ single, unitied stand on such a
~r ~ P~~~ ~~q probiem, so that w~e can dis-
competit~on needs modlfica-~ . The fmmediate. most impor- cuss it w~ith the EC commis-
tfons wt~en applied to the com- tant task the Eteagan adminis- sion, not with each govern-
petitlon In the [teld ot hip,h- tration should tackle is in- ment.
techno~ogy lndustries, sach as flation - reducing t~'o-dlgit in- !n view ot political and eco-
semlconductors and computers. tlation- to a one-digit tevel: nomic impact, Japan should
~~u'ty, u�hile carrying out tax cuts exercise seti-restralnt so as
Another ma}or issue in Ja- and enhancing vitallty ot the not to seriously ~dama~e the
pan-U.S. relattons w1U be how P~va~ ~O~� 1t ~uire a economy o( its trade partners.
Japan and Europe will re- considerable "shock treat- But at [he same time. ft com-
spond to the U.S. call foc ment" in order to break the petftfon is Ilmited too much.
'�shared responsiblllty" among tw~o�dtg[t inflation ''in- E:urope wiU further lose its
_ major Western natfons in the stitutionalized" in the U.S. competitleeness. It w'e rel}� too
eoonomic, polltical and secu� ~my and change the Amer- much on restrictions, d~~nam-
� rity tields. ican peoQle'S in[latton psychol- ism ot the economy tn ~1'estern ~
I~~~~ ~,.~a~ ogy. Bul if Amecicans are con- countries will be lost. A weak-
Ibillt meaas increasing ~i~ ~~mtnistration tt~is ened European economy~ is not
y~~ time means it, there may in the interest of the �'est as a
defense spending alone. b~t ~e a rea! wrninR po~nl. w~hole.
~SO 1O ~~O ~ P~aY~ I hope the new adminis- Japan and the EC should try
in the economfc Ueld, such as ~tion's antt-inflation po~~cjr to find ways to share as much
economic aid W developing w,~~~ w.~~ ~erica's E~~o-dfgit as pcu.sible prottts and employ-
countries. Japan should be
prepared to state cleariy what it Intlation and an unstable ment opportunities in fucure
- can and cannot_do uncler t1?C do~lar have a very undesirable throuRh such endeavors as
e[tect on the worid eco~o~?Y� buflding o( Japanese manufac-
present wotld s~Wation. including Japan's. �+e to turing plar~ts in Europe. start-
~agan admWstratlon's aW- ~ a strong doltar, stabie dol- in~ ot joint ~~en~ures in third
pide toward Japan ~ lar resiored as quickly as pos- ccwntries, and tuRher opening
�There Ls a possibility that sible. up of the Japanese market to
the Reagan administration wil! imports.
evaluate Japan-U.S. relations ~e~~ ~a~~ Japan-EC relations are stiU
.1[ is not very. desirable tha[ at a stage in ~�hich Japan-1;.5.
In overall terms. Inc~ud~~8 eco' each ot lhe EC awntries take
nomic tles and defense rela- ditterent arbitrary steps relations were a decade ago.
tio~s as Secreiar'Y ot State- - a�hen Japan and the U.S. k�ere
- designate Alexander M� Ha1B iagainst Japanese e~P~ns'� disputing the textiie trade
~~TT m~ ~�h~~~' and trade imbalance prob-
supported "linkage"'In his car it necessary. nea� arrange-
gr~10~~ ~~~~a~iOD ~~~t ments or rules, such as tfbse lems: :~tore, claser dialo~ue b~
mony. The new admtnistration tween the governments o( Ja-
pan aod the F.C is needed.
COPYRIGHT : TIiE JAPAN TIMES 1981
CSO: 4120
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ECONOMI C
G'HANGING POLICIES AFFECT FINANCIAL INSTITUTIONS
Tokyo BUSINESS JA.PAN in English Jan 81 pp 57, 59
~Article by Hiroshi Yonesato, director-general, Banking Bureau, Ministry of Fina.nce~ -
~Text~
FOLLOWING the outbreak of the corporate sector, which was nther
oil crisis 1973, the ]apanese easily done through influencing the
economy has been struggling for a lending activities of banks. However,
smooth transition from ihe high with changes in the money flow, it is
growth pattern the country had pur- necessary to control the total flow of
sued throughout the post-war period funds including public sector and indi-
to stable economic ~rowth. In this vidual funds, and also to see to it that
transitional process, the lapanese fund allocation among these three
economy demonstrated, by compari- sectors is proper. For example, there `
son internationally, excellent res~ience aze arguments against increased floata-
and showed a good recovery from the tion of public bonds on the grounds
- negative growth, registering a 5.9% that increased floatation, under the ~
_ growth in ceal terms in 1976, 5.8% in present system of absorption by finan- ~
- 1977. 5.7~'~ in 1978, and 6.0"o in cial institutions, is inflationary in
1979, a very stable pedormance. nature or that this will limit the fund
However, this transition from a flow to the private sector and cause
high growth economy to a slow- "clouding out" in the market. It is too
- but-stable growth economy was ac- hasty a conclusion to d'uectly conne~t
companied by vazious structural the increased bond floatation with
changes in financial conditions, and these conditions, but we cannot deny
the monetary policy is challenged to the possibility if the ecr~nomic policy
effectively cope w~rn these cnanges. is not catri~d out caiefully in order to
Among the changes are the following: avoid such co?~sequences. So, in float-
fust, the volume of monetary trans- ing public bonds, careful consideration
actions will expand at a slower pace. of the financial condition at the time
Secondly, the decline in the propor- as well as coordination of fiscal policy
don of the corporate sector in the and monetary policy is becoming more
total need for funds is accompanied by and more vital.
a corresponding increase in the share Secondly, in order to secure the
assigned to the public sector and indi- effectiveness of monetary policy under
viduals, and thirdly, the further thrust the changing flow of funds, effective
for intemationalization. utilization of the interest mechanism is
With these changes, the ways and called for. From this point of view, the
means cf monetary pc~licy formuladon report on "The Workings of Ordinary
need certain review. During the high- Banks and Reform of the Banking
growth period, it was possible to System," published in June 1979 by
agsume the effectiveness of monetary the Committee on Financial System
policy as an economic stabilizer by Research, positively credits the intra
controlling che flow of funds to the duction of the ccmpetitive tendering
method for the issue of inedium-term
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_ ~
national govemment bonds, the intro- ~onsumer loans, and to medium and ~
duction of negodable certificates of businesses. This w~11 make it
deposit bearing an uncontrolled inter- necessary for fmancial institutions to
" est rate, and various steps to liberalize cope with the wide and more diver-
and make more flexible the interest sified needs of various sectors of the
rates of the call market and bills economy.
market. Thirdly, there wiil be further steps
These developments in the Japanese toward intemationalization. With the
- economy and the accompanying implementation of the new Foreign
changes in the money flow have EX~ge Control Law, which gready
brought about drastic changes in the liberalizes the foreign exchange trans-
management of financial institutions. actions of individuals and businesses as
First of all, it is going to be difficult to well as banking activities, the business
merely pursue a policy of economy uf activities of Japanese companies will
seale. On the contrary, the focus will be rapidly internationalized. Bankin8
be placed on how to compete against activities also will have to internation-
the respective expertise and knowhow alize to cope with tha Beneral inter-
of each institution. The slowing down nationalization of the Japanese econa
of the scale of expansion will deprive my.
the financial insdtutions of economics In order to effectively cope with
of scale and, together with the narrow- these changes in the managerial envi-
- ing profit margins from 1974, will ronment, the financial institutions in
present a very severe profit prospect Japan are expected to endeavor to
for them. attain efficient operations through free
Secondly, there will be strong pres- competition. And for the administra-
sures and demands for financial insti- tion of banking aperations, it will be
tutions to play public and socially necessary to secure an environment
beneficial roles. With the relative where free competition of financial
decline in the demand for funds within institutions will lead to socially benefi-
_ the corporate sector, and especially big cial results. The establishment of an
business, the lending activides of the institutional framework such as fuller
fmancial institutions will be shifted to disclosures by fmancial institutions
emphasis on the public sector, to and a limit foc lazgescale loans aze
individuals through housing loans and necessary steps toward this end. O
COFYRIGHT: 1981 The Nihon Kogyo Shimbun
CSO: 4120
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ECONOMIC
MITI, MF CIASH OVER TAX CUT F~R ENERGY INVESTMENT IN 1981
Tokyo NIKKAN KOGYO SHIMBUN in Japanese 8 Dec 80 p 1
[Article: "Concentrating on Energy--A1,1-out Effort by MITI To Get Tax Cut for
Investment"]
[Text] Starting this week, MITI will face its greatest test in the offensive and
defensive battle over the tax cuts for investment which it is promoting with all
its resources--the "Comprehensive Energy Measures Investment Tax Cut" and the
"Industrial Diversification Investment Tax Cut." If the Ministry of Finance
smells trouble and asks, "How can there be a tax cut when we cannot cover in-
evitable cost increases without raising taxes?" MITI will not give any ground. .
"If Japan is to have healthy development under severe restrictions on energy, it
is essential to promote investment in energy facilities and secure the energy base
of industry. We cannot have great expectations of exports because of trade
friction, and public investment is limited because of decreased issue of government
bonds. The future of individual consumption is unclear, and what is going to
support our economy? Is there any solution but to stimulate private investment in
_ equipment?"
MITI officials say, "The industrial diversification tax cut may be impossible,
but we can by no means give in on the energy investment promotion tax system."
They are concentrating on the tax cut for energy investment and enlisting the aid
of Diet members in their effort to make it a reality. Fundamental principles for
LDP revisions of the tax system will be decided on 19 December, and the outcome
of the MITI tax system proposal will be watched carefully.
Under the Comprehensive Energy Measures Promotion Tax System there would be a
tax deduction of 10 percent of the amount of income from energy conservation
facilities, facilities for application of alternative energy sources, and facili-
ties for stabilizing the supply of petroleum. It would be applied for a 5-year
period. The amount of tax reduction in 1981 would be 200 billion yen. The
effect of the tax cut in stimulating investment would be an acceleration of 15 per-
cent in investment in energy facilities and it is estimated that there would
actually be 3 trillion yen in energy equipment investment (one-third by small and '
medium enterprises) coming under the tax deductian.
Therefore, the following developments can be expected. (1) Vitalization of indus-
- try would be brought about by a tax deduction with a time limit, and energy
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I
~
_ ~
= equipment investment, which is being postponed due to uncertainty about the
future, would be carried out. (2) By limiting the period of application to 5
years, investments would probably be made earlier. (3) Profitability would be _
improved by means of the tax deduction, and energy eqiiipment investments could be
ac~elerated.
Furthermore, expanding this investment will have the following effects on the
= national economy. (1) The transfer of 4 trillion yen in incame to OPEC can be
- prevented by promoting conservation of energy. (2) Although a great deal of
investment expansion cannot be hoped for in these times, an increase in national i
income of 750 billion yen can be realized through the expansion of private invest- i
ment. (3) The level of private business activity will rise and a resulting in- i
crease in tax revenues can be expected; according to one trial calculation the
= increase will ultimately cover 80 percent of the amount of the tax cut.
However, the Ministry of Finance is desperately working not only to decrease the (
amount of national bonds for next year by 2 trillion yen and cut new expenditures, ~
but to cut off aid money and cut into inevitable cost increases and increase ~
corporate taxes. Even if it is admitted that energy is a special category from ;
the viewpoint of Japanese security, there is likely to be strong resistance to a ~
tax cut. MITI makes the point that, "this is a scrap-and-build version of the
Industrial Conversion Investment Promotion Tax System which will be terminated in
1980. It is not at all new. We cannot accept simple expansion of the existing ~
financial framework and application of investments and loans from public funds" ~I
(MITI official). MITI wants to get this investment pror~otion tax instituted no j
matter what. f
- Although there is no way of telling what will happen in the end, there is a good
possibility that the Energy Investment Promotion Tax System will materialize. ,
However, it is possible that the size of �he tax cut will be reduced and the equip-
ment sub~ect to the reduced tax may be greatly limited. If this is the case,
especially today when all new equipment of small and medi~n enterprises is related
to energy conservation, attention will focus on which items the tax cut wi11
apply to. Recently equipment investment by small and medium enterprises has
slumped dramatically. In order to maintain the vitality of our economy, small
and medium enterprise organizations like the Japan Chamber of Commerce along with
MITI strongly desire the institution of a tax cut for small and medium enterprise
equipment investment. So there is much interest in the ou~come.
The other measure of concern, the Industrial Diversification Investment Tax Cut,
calls for a deduction of 10 percent of the amo~int of investment from the tax for
industries located in industrial parks built by pi~lic organizations in industrial
guidance regions (a 60 billion yen tax reduction). MITI has promoted this tax
cut along with that for energy, but at this point there is a growing feeling of
resignation on the diversification tax reduction system. However, there is still
some tenacious support for this measure within the LDP.
COPYRIGHT: Nikkan Kbgyo Shimbunsha 1980 ~
9651
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ECONOI~SC
~
CHR.YSLER CALLED LIABILITY FOR MITSUBISHI
' Tokyo ~IAINICHI DAILY NEWS in English 20 Jan 81 p 5
[Article by Kentaro Koshiba]
[Text]
The deepening crisis o! l~P~ 3~ percent to 63.000 inciuding competi[fon trom
('hrysler Corp. ls having some lmported cais.
- inevitable impact on its 71~e situation has markedly Now the U.S. government is -
Japanese pactner, 9titsubishi deteriorated ot late. Earlier �his commltted to help Chrysler tide
;~totors Corp. and several month Mitsubish.i decided to over the crisis - by guaran-
Japanese banks who have lent stop pcoducing all [ypes o[ cars teetng an additional ~100 millton
money to the American for Chrysler because U.S. fo- in loans to [he afling automaker
automaker. ventories had reached twice the ~so tar S800 millfon has been
For blltsubtshi, the third ~orn~a1 ctltree-month) level. guaran[eed).
_ largest automaker here, Ne~ct month, exports, In- The tederal Chrysler Loan
Chrysler ts now a tiabUity, cludir?g engines, will also come Guarantee Board, which has
something that was in- to a halt. With 15 percent ot approved ot the new guarantee,
' conceivable a decade ago when output cut of(, Mitsubishi bas supports a rescue plan that
the two Ifrms~ formed thetr been torced to discontinue calls tor, among other things, a
present tles. overtlme work on the assembly merger or Joint venture bet-
In April 1971 Chrysler tines and trans[er some ot its ween Chryslet and one ot its
acquired a 15 percent owner- empioyees to other forei~partners.
ship position In ?Nitsubishi. an P~~~s. That puts Mitsubisht in a very
attillate of Mitsubishi Heavy~ These problems, serious difttcult pos[tion, a posi~ion
_ Industrfes r",IHI1. ~?nd Mit- ~`ti ~6h theY are� ~eem [o ~warf stmilar to that in whtch Toyota
subishl Motors, whtch had no cumpa~� a�ttb the comFlex Nlotor Co., for instance. ��as
sales network ot tts ow~n in the problem of preventing a place: i::st year, when it came
U:S., obtained the right to sell Chrysler cnllapse, ior M1tit- under pressure not only trom
i t s c a r s t h e r e t h r o u g h subishi's cooperatlon. whate~�er the U.S. Cut trom the J apanese
Chrysler's dealers. form it may take, is con.5idered government as well, to �'help"
But, with tts American essential to Chr~~sler's theAmerfcanautolndustry.
partner apparently on che brink ~0Ve17'� What Toyota did, besides
ot bankruptcy, Nlitsubishi naw� Admi[tedly, the trouble in Iaunci~ing a teasibil(ty study on
stands to lose, rather [han gain, which t;ne thfrd larges~ U.S. U.S. production, was io begin
f r o m t h e m a r k e t I n g auto [[rm ftnds Itself now stems ~ptiattons with Ford Niotor
arrangement with Chrysier. ln primarily trom tailures in ~ a~~. p~~ to build cars in
tact, it ~�as the only Japartese management - esgecially ~ye U.S. through a jotr.: ~enture
auto [irm that sutfered a drop in ~tailure to alter its production ~~e talks are siill under way,
L'.S. sales in 1980. . scrategy in tine with the shitt in ~~W ~QY �,i~l end is not
Sales o! ~titsubishi assen er autodemand.
p 8 ~clear at the moment 1.
~ cars, marketed under Chry~sler But the Ctirysler crisis is also
nameplates such as Dodge and percwived to be an integral part The probiem witn Mitsubishi
Plymouth. (ell ott 6.3 percent of the larger probiem (acing the is th2.t Chrysler as tt stands
trom a year ago. to 130.000 U.S. auto industry - the di[- seems to hold out little promise
units. although truck sales ticulries Involved in its tran- as a possible parfner in a
sitlon tu small~car production, merger or joint venture. Last _
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wcek, speaking fn a news
conference Yoshltosht Sone'.
Ml~sublshS president, lndlcated
he was not much laterested tn
such a pcusibility.
- in LaM. Mttsubishi has trled In
recent months to break lts tles
with Chrysler. For examp?e, It
- has trled, w~itMwt success. to
- abollsh the capital linkup lby
MHI buying up Chrysler's la
percent stock) and set up Its
own sales company [n the L'.S.
= bieanwhile. the seven banks
lnvoived. Including Mitsubisht
Bank. also tlnd'themselves ln a
- dellcate posltton. For !!ke
Mttsubi:r,hi. they are likewtse
exp~c~..Pd t~ cooperate in the
Chrysler ca~~out
Such cooperation woWd tn-
votve writing ott a po~tion ot the
Et56 mlllbn debt Chrysler owes
them. L'nder the conditions set
by the loan guarantee board.
halt that amount woWd be
converted to pre(erred Chrysler
stock. Ot the remainder, 30
perceM would be paid ott tn
lnstallments, and the rest,
equal to about one-third ot the
debt, would be ettectively
torglven. ~
That would be a "con-
trlbutlon" requlred noc oNy
from the Japanese banks but
- also trom 100-odd oti~er banks to
whom Chrysler owes money. As
one banker put lt, constdering
the poliNcal and economic
' relatSoos between the two
natlons, "we would have to
resgond cposlUvelyl to the
American plea tor
cooperatton."
Currency Report
'I'he Bank ot Japan's note ~
_ Issae Saturday aecreased
Y15U,~300 mWlon to Y15.151.000
mllllon while i[s loans uut-
standing tell by Y150.400 mtllion
to iE2,~89,10~ millfon.
COPYRIGHT: :vtainichi Daily News, 1981
- CSO : 4120
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ECONOMIC
BRIDGES REFLECT EARLY GOVERNMENT POLICIES
Takyo BUSINESS JAPAN in English Jan 81 p 42
~A;ticle and illustrations by Minoru Hirota]
~Tea:t~
AF'TER passing the Rokugo Shrine Shogun, there was no danger of rebel-
and proceeding southwest along lious elements rising against the Baku-
the national highway (in this azea, the The foregoing bridges were th~~s
ol~ Tokaido and the national highway built as an exception to help make the
are one), we approach a large river life of the inhabitants more conveni-
called the Tamagawa. Here the river is ~t� .
generally called Rokugogawa instead It was extremely inconvenient not
of Tamagawa, however. having a bridge over a wide river. When
The bridge over the national high- the water level was low, it was possible
way is consequently called Rokugo to wade through to the other side, but
Bridge. Today several railroad and when it rained, tha water level immedi-
motor vehicle bridges span the Roku- ately rose and made crossing impossi-
gogawa, but there was none during the ble. It was not unusual to see travelers
Tokugawa period (from the 17th to ~'s~~6 for days along the river bank
the mid-19th century), until the water level fell.
- It was not that bridge building was Fortunately, in the case af the
technically infeasible; but because con- Rokugogawa, there were wooden ferry
struction of bridges was banned by the boats that carried people across the
Tokugawa Bakufu, the military gov- 'iver. The boaUnen would not row
ernment in power at the time. The ~i~? oars but propel the vessel forward
purpose was to protect Edo (Tokyo). using a bamboo pole. Such a boat was
Without bridges spanning the wide called watashibune.
rivers, an enemy invasion of the capital Acvording to old documents, it
on a large scale was not possible. The seems that in the days before the
$akufu therefore banned, in principle, Tokugaw~ period, th~ rivers were span-
_ the building of bridges over large rivers ned by bridges. For instance, in the
intersecting the Tokaido, the major former province of Kai (Yamanashi
trunk highway. prefecture), there once lived a power-
Exceptions were the bridges built ful wazload named Shigen Takeda
across the Toyo and Yaha~ rivers whose army tried to cross the Ro~~~o-
ilowing through Toyohashi and Oka- gawa. Legend has it that a general
_ zaki cities, respectively, in Aichi pre- named Danjo Namekata bumed the
fectwe. Aichi is where Ieyasu Toku- bridge over the river in order to block
gawa, the first shogun, was born. the invasion which occurred in the
Generations of daimyo (manor lords) mid-16th century.
~ who were particularly close to the It is also recorded that another
_ Tokugawa family ruled the arca. And bridge was built there in the year
since darmyo in the vicinity were also 1C00. There is no clear record as to
- related by blood to the Tokugawa ~t sort of structure it was, but it
seems to have been crudely built.
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- 1 i~~
- ~ st te,~P~ ~ twrK~sk bath-
- ~u~d..h~
S~~' O~DToKAIDo ~
x ~
a.k~ (
o Kawas s~~~~ori
,
nn
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~ ~ n ~ n n~~ i
h n(1n
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~ ~U~~`~'` ha c;o7tcZ 1 1^oacC l( l,
Nd ~ vey~ ( ~~1 r~ r e
~d~u~~ r3" ~oKc~4o
~ R
~df~, ~(J~'TO
~~~G: Y',' Uel^
- 'fhere was a wooden framework and
_ the section where people walked was
filled with eartt?, so it was in the
_ category of an earthen bridge. When-
ever there was a flood, it was quickly
- swept away.
Even in the early days of the
Tokugawa period, simple earthen
bridges were built during the winter,
perhaps because they could be easily
constructed when the volume of water
(low was s~~iall. However, in the early
part oC the 18th century, in the
mid-Tokugawa period, the building of
bridges was strictly banned, and only
ferries could be utilized for crossing
ri~ers.
COPYRIQiT: 1981 The Nihon Kogyo Shimbun
cSO: 4L20
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ECONOMIC
TASKS, GOALS OF NEW ENERGY COMPREHENSIVE DEVELOPMENT ORGANIZATION
Tokyo ENERUGI FORAMU in Japanese Vol 312 No 26 Dec 80 pp 48-52
~Text] It has been a month since the start of new energy development and promo-
tion as the central subject headed by Sunshine 60 on 1 October. How is this tar-
get program going to be developed through organically coupled development and _
practicalization efforts on the parr of government and industrp? We asked the
fiery Director Watamori for his comments.
From Smooth Touch of a Button to Main Body Development
~This Journal: It has now been a month since the birth on 1 October of the "New
Energy Comprehensive Development Organization." Needless to say the feature of
this organization is the establishment of an operating committee comprised of
_ learned people from the ranks of private industry (Honorarp Chairman Toshio Doko _
of the Federation of Economic Organizations) to serve as the topmost decision
making organ in order to activate to the utmost degree activities and creative
powers of the private sector. It is said the activities for JFY 1980 were de-
cided at the second meeting of this operating committee on 29 October. Was there
any difference at this meeting compared with those of the past and is there any
_ feeling of change in the atmosphere?
Watamori: The first meeting of the operating co~ittee was held on 1 October,
and this was the first meeting where there was greater attention at getting to
knaw each other. The second meeting was held on 29 October at which the business
plans for JFY 1980 were decided. Among the themes which emerged at this time
were the ones which had already been set forth under the Sunshine Program of the
Industrial Science and Technology Agency which could be brought out at the touch
of a button, and these are programs which are we11 under way. This ~ust about
accounts for the activities for the last part of JFY 1980. We are not creating
entirely new themes for introduction at this time. _
This is why this operating committee is one which has been pushed into this
present situation and which has the role from hexe ou to function to fully acti-
vate the true im,age of this new organization. Mr poko and Mr Yoshiwaxa along
with the re~t of the operating co~nittee may have set out to resolve this energy
problem as though they were going to cut th~ Gordian knot, but this effort has
not yet come to the suriace at the present time.
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While I myself am not devoid of the feeling of wanting to try something else, one
of our present problems is tfiat the budget for 1980 has already been set and even
the initial draft of the JFY 1981 budget was drawn up in August and is presently
being discussed such that our wishes are not reflected.
It will not be until JFY 1982 when our true wishes will be entered into the budget
along with the wishes and plans of the other members of the operating committee.
When we speak of the JFY 1982 budget, we ar~~ talking about next August. This is
why we already have to start our wheels moving to present something to the operat-
ing committee along about next March and then in June, and I believe this will be
a magnificent effort.
In this situation what I am putting my greatest efforts into is how to continue -
without incurring losses to the button touch capabilities passed on to me by my
predec~ssors. At the same time, the group which has been assembled represents
people from the ranks of government and private sectors, and it is very important
how their orbits can be synchronized so all can function as a single body, and a
considerable part of my energy is directed at this matter.
[Question] How do you propose to provide this operating coIDUnitt~e with the capa-
bilities which were lacking in the public organs of the past? At the same time,
what the chairman and the rest of the executive board will be doing in this ini-
tial attempt along with their basic line of thought will be very important; could
- you explain this situation? '
[AnswerJ Our future mode of operating will probably be the introduction of some
ideas from the private sector to determine the targeted efforts from year to year.
We do not intend i.n an abstract manner to decide to do this or that. For example,
we may decide to cut our oil consumption by 1990 to 50 percent and obtain the rest
of our needs completely from alternate energy forms as one of our objectives.
Then the attainment of this goal will be one of target management.
On the other hand, the government operations of the past were not restricted very
much by time limits as far as target management was concerned as a result of which
they did not offer much elation. Now, when people from the private sector come in
and carry out target management which includes time limits, a situation in which
the contents themselves can be altered arises. The makeup of the board of direc-
tors has changed at least in shape ~ust because of the entrq of people like us
from the private sector, at least to my way of thinking.
Then the question arises why do you call this an operating com~ittee? If one
looks at the situation it would seem that the operating committee members are
pointing and saying do this and that, but it certainly isn't the situation that
the orgar.ization itself is telling these different people, "just what shall we
do?" and wait for an answer. Isn't it the situation tiiat the organization itself
shall come forth with its own ideas while the organization proposes that the sub-
~ects, which it intends to have carried out next year in 1982, be studied within _
the organization for which purpose a feasibilit~ study group has already been
started?
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While we have been working on themes gi.ven us by the government, we are now in
a position to say that is what we ourselves should do. One of these courses is
illustrated by the Pxample in which we conduct a feasibility study deciding what
to do in 1990 about a certain ob~ective and what to do in some other area and
Chen go to the operating committee along about next March and say, "this is whaC
we believe, and we ask your consideration." By requesting a review in this man-
ner, we receive a number of suggestions.
We then take this theme for which we obtain the operating committee's approval
along about June and take this idea incorporating the originality of this organi-
~ zation to some organ such as the Energy Agency. Then this idea is reflected in
the budget drawn up in August, and this is when our ideas first come to reality.
[Question] In other words, the new organization itself will first subject a new
pro~ect it envisions to scrutiny within its target management concept and evaluate
and analyze all facets on j ust what steps are required to attain this objective
and whar will be used to achieve this end. At the same time, it will submit its
activity plans and strategic pro~ects to the operating committee and grasp the
capability which should be reflected in the policy for itself. Is this the way
you propose to start?
[Answer] That is so. This is the line of action I would like to follow.
[Question] In such a situation, doesn`t it mean that that portion of Japan's
energy technology strategy which the new energy development organization will ta~e
and aseume responsibility over will be self limiting? In the presence of a limit-
ed fund situation the problem will arise, what items should be assigned priority
and impcrtance while a check and review is conducted and effective development is
being promoted?
[Answer] Speaking in a gen eral sense, there is the target date of 1990. While -
we were thinking about 10 years in the future, it is already only 9 years away,
- and there are but 9 years left. This is why if we are to lower oil's contribu- -
tion from 75 to SO percent, we will have to double our contribution from alternate
energy. This is because the base itself will be expanded.
Such being the case, what kTe can do by ourselves in the 10-year period is already
known. Small scale hydroelectric pawer, geothermal power, or solar energy are
very minor when compared to the overall scale. On the other hand, their status _
will change in the next 10 years from 1990 to 2000 and the next 10 years follow-
ing that period.
This is why I feel that we must work on coal during the next 10 years because
_ there is nothing else. We make no mistake to say that we will cover the alternate
- energy situation with nuclear power and coal. This is why it is only natural that
the new organization will want to empFiasize coal. On the other hand, if we limit
ourselves to just coal, when 1990 rolls around, the next 10 years will see the
emergence of solar ener gy and geothermal energy as ma~or actors, and there is a
need to make a start in that direction from naw. TEiere is need to sprout the -
seeds and nurture them to the seedling stage. This effort will require a consid-
erable amount of effort.
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Of course there is sa~e feeling that maybe some of the money allocated to geo- `
thermal or solar energy s~iould be reallocated to coal, but there is need to con-
duct basic studies in geothermal or solar energy while placing emphasis on coal.
' [Question] Then a premise to such an approach wi11 be the need for consider.able
increase in funds. There is about an order of magnitude difference in funds com-
pared to other leading countries. An increase in funding levels is an important
factor, isn't it?
[Answer] Certainly, that is one of the sub~ects we must not lose sight of. Be
that as it may, if we look at the present situation, solar energy is still in the
basic study stage so that such a large increase may not be necessary. On the
other hand, there is need to make sharp increases in funding where coal is con-
cerned. For example, the coal liquefaction studies we are presently conducting
in Japan are with a 1-ton/day �acility. TEie United States, on the other hand,
is already planning on 6,000-tons/day scale plants. In this respect, the Japa-
nese Government is keeping in step and is to enter into a one-fourth participation
in a~oint international research program. This tab is expected to run fnto 80
billion yen, and this is something this ne~a organization is to take up.
Such being the case, it is not our position simply to shift funds from the right
to the left hand. If we are to simply send these 80 billion yen gathered as tax
from our people overseas and do not realize equivalent value, we will not be able
Co face the people. This 80 billion yen is intended to be research funds. This
is no trifling sum.
= Then we can up our scale of operation from the 1-ton/day level to at least 40
tons/day, and this scale will become much larger in quick order.
[Question] The present Japan-United States-West Germany joint international
energy project SRC-II is funded for a total of 80 billion yen and Jdpan's share
will be 22 billion yen for JFY 1981. In contrast to Lhe above, the Japanese
domestic program was funded for 1.5 billion yen in 1980 and the request for JFY
1982 is but 13.2 billion yen (of which 3.2 billion yen is for coal gasification).
Are we not losing our balance as a result of this limited fund distribution?
[Answer] You are mistaken. I am not in love with Gulf's SRC-II process. I have
not engaged in this study myself. This is something the government had already
decided, but is something we will take up from here on.
This is why while I am not completelq enamored by the Gu1f process, if we are to
assume a considerable share of the funding and participate, there must be some
reasons. There are 3-4 small sprouts which Japan is nurturing such as the
solvolysis method, solvent treatment method, or the direct hydrogenation method.
These are being cultured in Japanese hothouses. I am thinking of growing these
sprouts, and I am not thinking of growing sprouts from some other party.
r
Now, whaC do we expect to gain from this 80 billion yen? We hope to gain some
insight on mass production technology. Japan is in no position to put up a 6,000-
ton plant. Ttie sprout being grown in Japan is one of them. WIien this one of them
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grows in Japan and assumes the stature of a 6,000-ton plant, the areas where we
can fall down, and the areas we need to study will not be lrnown until we have ~
actual experience. If we can acquire this information through SRC-II by partici-
p~tion with an outlay of 80 million yen, this mass production technology should
become available to us.
By utilizing the information so obtained to grow these young sprouts this becomes
Japan's method, and 1_et us put forth all ava.ilable information in this direction.
And we will have to put up roughly four times the 80 billion pen or about 320 bil-
lion yen to develop the system, but I feel we must make do with about 200 billion
yen. We are making our present outlays with the hope that this program does not
meet with failure, and I am certainly not in love with the SRC-II process. .
This is a very important point, and this is where the merit lies in participa-
tion in the ~oint international program.
_ [Question] Coal energy technology development can be classified into liquefaction
and gasification. Now, assuming that the respective types of new energy are de-
veloped, what would be the most appropriate way of using this new energy in place
of oil? Certainly the question here is not one simply of liberating energy, but
the selection of the quality of this energy is an important problem. In this
respect it is my feeling that both from a technological sense and in line with
the actual needs, gasification pawer generation will be more in line witin the
range of the individual's needs.
[AnswerJ There are boundary conditions to such a problem. We will pursue only -
]_iquefaction this fiscal year. We will start on gasification next year. That is
- the order which this organization will follow. When someone asks me why liquefac-
_ tion first and gasification later, I can only say that is the way it was planned
and there are no deep rooted reasons. Gasification is easier. ~
On the other hand, liquefaction holds some charm for me, and th,lt 3s because I
believe that liquefaction will be more stable in Japan. I have ~ust started in
this business and I am not yet an authority who can be a protagonist to a cause,
but it seems to me that liquefaction is more advantageous when the transport
angle is considered.
For example, gasification is already under way in South Africa. Coal is gasified
and then liquefied on a commercial basis. On the other hand, I do not plan to
imitate that process. As far as Japan is concerned, it would be easier to di-
rectly liquefy the coal rather than gasify then liquefy, and the overall cost will
be lower. Furthermore, unless the product is liquid, the transportation becomes
a problem.
While Japan has pro~ected production of about 20 million tons of coal, here again
there is no other way but to rely on coal imported from abroad to provide the
main supply. Now, the question is what would be the most advantageous way of
bringing in the coal from the resources rich countries which ring the Pacific
Ocean? At the present time, 60 to 70 percent of the cost of coal is transporta-
tion. That is why the conversion of the coal at the mine to a high calorie and
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small volume product which can be transported most readily and at lower cost will
be the most advantageous means: almost anyone will agree.
The liquefaction of the coal dug out of the mountain vastnesses of Australia and
piping this product to the waiting tankers will be the most intelligent approach.
In this manner, it is my feeling that the ultimate treatment of coal will be
liquefaction, but should gasification be brought about very cheaply, then gasifi-
cation should be fine. Even now LPG aizd LNG are shipped into this country in
liquefied form. It seems that this is the logical end every time transport is
conaidered.
[Question] On the other hand, when we think of the liquefaction process, rioesn't
it turn out to be a fairly e~ensive process? Such being the case, it can only
be used in a demand area which can withstand considerable add-on cost, and the
soft area for research and development on the mechanism of its introduction into ~
the market should become an important theme.
[Answer] A certain university professor asked why are you liquefying coal; are ,
you not using up half the calories in the coal for the liquefaction? You start
off with a large mass of coal and reduce it to a limited amount of the liquefied
product, and this seems to be so wasteful. Surely, it is very wa.steful. Here
we have 8,000 calorie~ of coal and we use 5,000 calories for the liquefaction.
Then the 8,000 original calories becomes 5,000 calories of liquid fuel. While
you may say it is wasteful, the situation is that the abundant coal has no value
resting in the hills of Australia. It :Ls only after the coal is used to fire
power company boilers that it acquires anq value, and the material nestling in -
the stamping grounds of the kangaroo in Australia has no value whatsoever to man.
That is why even when only half of the calories is recovered in the form of the
liquefi~d product, this material first begins to assume value.
[QuestionJ I suppose where the coal producing country is concerned, it would be
more advantageous to export a product to which a high add-~on value has been tacked
on.
[Question] [Sic] This is where this new organization has this ma~or role of ty-
ing together technological development of this alternate energy technology to
practicalization. There is no need to mention that we need technological break-~
throughs to achieve this end, but the problem arises in ~ust how to make up for
the economic disadvantage in competing with other forms of energy. This is why
there is need to set up a private business operation and management system to
carry out this end.
[Answer] No, I feel that is a simple matter, and I am no longer afraid of such
a situation. We have experienced a number of such situations. I am a nuclear
power advocate. Let us take the example of the centrifugal separator which is
a facility for the enrichment of urani~. That is a technology which none of the
other countries would teach us. Since there was no other recourse, it was de-
cided to start its construction by an agreement among the Japanese makers. The
first unit which was completed cost several dozens of million yen. We now talk -
abouC producing these centrifuges at the cost of about a million qen per unit.
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Take the case for example, in which something which could not be produced for -
30 anillion yen is now produced for 3 million yen. The present situation is we
are trying to produce them for a million yen per unit. And this is the situation
at the present time, and this has come about in the short time of but 5-6 years.
This is why I feel that where coal is concerned, it should be possible to bring
down the cost of the liquefied product to the level of coal today.
[Question] That is a reassuring thought. The next item of concern is whether
private industry and groups will participate wholeheartedly in the research and
development program offered by this new ocganization. This is a problem tied in
with management and operation of industrial rights such as patents and utility
models, and we must not cause the participation group or industry which itself
possesses strength to develop technology and power to amass capital to lose in-
centive.
_ [Answer] I am sure that many such problems which require resolution are around.
We are now in the process of studying ~ust how to go about this management and
operation so that the socalled incentive is not lost.
[Question] What about the local energy appruach?
[Answer] We are now at a stage where we have a~ountain of pro~ects which we want
to pursue, and i feel that local energy is something which should be left up to
the private sector or delegated to some smaller organization.
[Question] What I next want to hear about is the relationship with the "New
Energy Foundation."
[Answer] This is an area which is still not yet firmly established. We expect
to gradually develop this subject from here on, and bits are falling into place
in localized manner. The "New Energy Foundation" is again one of our input areas
[ukezara] and it is an organ which functions as an intermediary between this or-
ganization and the private sector in a role similar to that of the Japan Atomic
industrial Forum (Genshiryoku Sangyo Kaigi) of the nuclear industry which func-
tions in a general sort of way. Coming back to the sub~ect of local energy, even
though the organization does not act on it, this "New Energy Foundation" may act
on it.
~Question] The final problem is how you consider the terms "new" and "compre-
hensive." It was said that the principal alternate energy from here on will be
- oil and nuclear power, yet the all important nuclear power was left out and we
are left standing on coal alone leaving us in a very strained situation. How do
you feel about this future problem?
[Answer] The "New Energy Comprehensive Development Organization" which does not
include nticlear power is something akin to a couple in a three-legged race.
Truthfully speaking, we do not intend to be a three-legged couple. We will at-
_ tain the objective of 50:50 in 1990. It will be nuclear power and coal which
will account for the ma~or portion. This is a theme which I have been reiterat-
ing over and over. If we take away the ma~or accomplice that is nuclear energy
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and I am assigned the ~ob of attaining the desired energy goals, I would consider _
it a completely unreasonable assignment. While I may think along such lines, the
series of events seems to have resulted in such a situation (laughter).
In any event, we must organically tie together the directions of "govemment" and
" rivate sector" to pursue the co~n+on goal. On1y after such a
the ideas of the p
union is formed that a new urse desniCersomeeheadachesrandipainsn can be born,
and we are pursuing this co P
Budget for New Energy Comprehensive Development Organization
(New Energy Related Fraction) (Unit: 100 Million Yen)
i Al ~ z ~ ) ~
a ~ *~~~~v~~ sa a3
(i f1.~~ (R#~hGjr. ~t~~o (si) C12)
1 (z):l~D~E3~'~
1 ~3)k~(LCl~~~-~-ix3s.. ~ ~ 6) ~1)
_ s n~ ~t - ~~~k~1Y~i~)
2 0 y~~%~~[~I~~:zT~~,.
~~+e~~ 18 3
2 6. ~~~6~'Fr3~`1~~'c$) 33 i6
2 7. SRC-II5}~! 2~0 0
2 3 ff 653 I 17i
24 It (SRC-AS}~5}~'t6~C.) I -
25 C~) s~~l~~i5 fi~9$~
Key:
1. Item
2. Requests for JFY 1981
3. JFY 1980 budget
4. Promotion of overseas coal development
5, (1) Overseas coal prospecting fund (objective expansion, funding ratio
70 percent, interest 6.5 percent)
6, (2) Overseas coal development obligation guarantee (70 percent of one-
half total of cities and Export Bank, 15 timese loticlstructural survey)
7. (3) Others (survey on possible developments, g g
8. Coal energy technological development
[Key continued on following page]
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9. (1) Simshine coal liquefaction
10. (2) Coal gasification (high calorie gas, law calorie gas)
11. Geothermal energy technological development
12. (1) Technology development (hot water power g2neration, geothermal
search technology, deep layer hot water supply system)
13. (2) Surveys (geothermal development promotion survey, all country geo-
thermal resources comprehensive survey)
14. (3) Geothermal development obligations guarantee
15. (4) Large scale deep layer geothermal survey
16. Solax energy technology development -
17. (1) Solar energy power generation
18. (2) Solar photopower generation
19. (3) Others (industrial solar syst~ms, technologq for utilization of
solar energy for desalination of sea water)
20. Other technological developmeats (wind power generation, hydrogen pro-
duction plant, electric power storage systems, fuel cells, etc.)
21. Others (office expenses, subsidies, etc.) _
22. SRA-II share
23. Total
24. Total (excluding SRC-II share) _
25. (Note) JFY 1980 was budget during June
COPYRIGHT: Denryoku Shimposha 1980
2267
CSO: 8111/0408
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SCIENCE AND 'TECHNOLOGY
~
WIDE ENERGY-SOURCE SPRFAD ESSENTIAL FOR FUTURE
- Tokyo BUSINESS JAPAN in English Jan 81 pp 32-35
~Article ~y Shozo Hochi, editor-in-chief, BUSINESS JAPAN~ ~
~Text~
report recenfly compiled by the Shell Oil Co. of Japan T~5 u partly due to the fact that demand has not grown
A and Shell Kosan Co., titled "A Report on Oil Majors ~~use of the economic slowdown in the U.S. and other
in 1979," states that during the second oil crisis in 1979, ~dustrially advanced nations. But an even greater factor is
when supplies of Iranian crude were halted and prices hiked that as a result of OPEC's hiking of oil prices since 1979,
twofold, consumption of energy throughout the world there has been a conspicuous acceleration in oil saving
increased by 3% over the preceding year. But it notes that measures and moves away from o~1.
consumption of oil grew by a mere 1% while that of energy The promotion of safety measures at nuclear P h~ve -
other than oil, such as coal and gas, marked a higher plants and their operation at nearly full capacitY
~oW~ resulted in France's oil consumpdon declining by 14% from
In the autumn of 1979, the Secretariat of the Inter- the preced:ng year. The figure for West Germany, which is
national Energy Agency (IEA) and the Commission of the striving to expand use of domestic coal, has also fallen by
European Communities compiled a forecast on the volume 9%. ]apan's oil consumption, too, is expected to drop by
of oil consumption in 1980 by the 21 member countries of 7% since th~ operating rate of nuclear power plants reached
IEA plus France, a non-member. According to the forecast, the level of 61.6�k (monthly average between April and
the volume of consumption would decline by 7% as September) in 1980, as compared to 46.7% in the same
compared with the preceding year while imports would also period a year ago. ~
fall by F 196. The economic slowdown in vanous countries ReflecUng this decline in consumption, the volume of
had its effect, but the rise in oil prices spurred economy petroleum imports of the 22 countries in I980 is expected
measures in the consumption of oil and a switch to the use to total 1,163 million tons, or just under 2,370,000 bbl. per
_ of coal. Another major reason for the lower consumption day, which wil1 be aPp~ea~Com ared
with th~res ncted ~
- of oil was the high operating rate of nuclear power plants. that of the preceding y P
The IEA believes that both consumption and imparts import targets for 1980 set af the summit meeting of the
will continue to decline in 1981 as the U.S. economy leaders of the industrially advanced nations in Tokyo in
recovers, and it is increasingly thought that the era of large 1979, L:e daily volume Wn71 reportedly fall by 12% to the
oil consumption is drawing to a close. Japan's petroleum low level of 3.2 million bbl.
imports (daily volume) amounted to 5,160,000 bbl. in 'T1~e IEA and other quarters expect that oil consumption
~ 1980, and IEA thinks that 5,060,000 bbl. - far less than and imports w~71 continue to decline in 1981. They predict
the restricted import target of 5,400,000 bbl. agreed on thai the ann~~ n1~on~t sn(j stunde~ 37.6 mill on bbl.
in 1980-will be sufficient m 1981. will total 1,
The forecasts of the IEA and EC are based in principle per day) and imports, 1,139 million tons (23 million bbl.),
on the outlook for annual economic growth of 4he various down by 19'o and 2�b, respectively. Restraints on oil
governments in both 1980 and 1981 (4.896 ir? the case of imPorts, they stress, will prove effective.
Japan in FY 1980 and an average of 5.596 thereafter). It is estimatsd 60 000 bbl. of ilpn~ 1980 nd no more
According to their estimates, peiroleum consumption of (daily volume,
the 22 countries in 1980 will total 1,855 million tons, or than 248 million tons (5,060,000 bbl.) in 1981. And there
- a daily volume of just under 38 million bbl. (1 ton = is very little likelihood that the operating rate of nuclear _
apprax. 7.4 bbl.). [t will fall short of the daily volume of 40 power plants will register a sudden fall hereafter. The
million bbl., a level which has continued for the past several ~e usr.eof coal iseexpected o p k up momentum, artdceven
- years.
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Table 1. Expected Supply and Demand Results of
Industrially Advanced Nations in FY1980
and Outbok for FY1981 -
1980 1980 1980 19SI 1981 1981
Con- Con- 1980
sump- Import Import sump- Import Target
tion Volume T~iget tion Volume Com-
Volume Volume azison
Japan S11 516 540 507 506 �6
(�7) (~8) (~1) (�1) (�2)
United States 1,664 692 890 1,660 703 �11
(�8) ('6) ( 0) ( 2)
- W. Germany 271 2T 1 291 267 259 �11
(�9) (�10) (�2) (~4)
Italy 204 204 212 200 196 �8
, ('1) ( 0) (�2) (�4)
United 173 6 24 167 n10 -
Kingdom (~3) (~84) (~4) (
IEA Totals 3 588 2,153 2,450 3~40 2,108 �14 _
(�6) (�11) (�1) (~2)
France 220 216 238 216 212 �ll
(�14) ('15) ('2) ('2) -
Total of 3,778 2,369 2,688 3,756 2,320 �14
22 Countries (~7) (~11) (~I) (~2)
Notes: 1) Figures within parenthqes indiate percent of rix/fall
mmpared with preading year (expected rcsults).
- � indicatesdecline.
2) 1980 target comparison also indicated by percent.
~ indicates decline.
_ 3) In case of United Kingdom o indicates net export -
volume.
- with the foregoing import level, it is believed that the ~urces of energy, facilitate their import and seek t~
economy can be managed without difficulty, establish a society that dces not rely on oil. -
On ti~e basis of the above forecast, the IEA and the EC pf the foreg~ing supply targets, that of nucl~ar power
commission will decide the 1981 oil import target by ~neration is set at a wide range of :rom 51 million ]c~.~+ to
- country, 1t looks as if Japan s target will be lowered by 696 53 million kW with an annual power generation of 292,1?00
betow that of 1980. For the moment, the Japanese ~on kWh. At present; location of nuclear power plants is
government is taking a cautio~is wait-and-see attitude ~,nspicuously lagging due to the opnosition of local
� toward the considered target reduction, but there are residents and the dimculty of putting the full potentials of
officials even within the government who believe that Japan the facilities to work. However MITI's Agency of Natural
can manage w:�.h a daily import volume of from 5 million Resources and Energy belives that even if Sl million kW
to 5.2 million bbl. It is possibls, therefore, that Japan will ~not be attained, the supply volume to_det can be
_ accept the target cut. achieved by raising the operating rate to 65%.
- It should be mentioned tha! at the cabinet meeting on In the past, Japan's nuclear power plants had been
November 28, the Japanese government officially decided ~~~~g at a rate of 5(~76, somewhat lower than the 60% `
- on the ~ltern~te e~ergy supply :argets which would lower ~evels of the U.S. and Europe. Since 1980, however, they
Japa;~'s dependence on oi~ from the present 7296 to 5096 in have sxperienced little trouble and hav~e been o~eratir,g at a
FY 1990 (See Table 2). The targets were formulated by the 60~ rate. Since regular inspections (requiring a month -
Ministry of International Trade and Industry (MITI) on the ~ree tir~~es a year are stipulated by law in Japan, a "
basis of the Petroleum Alternate Energy Law promulgated 7396 operating rate is the ceiling. MITI i~ increasingly `
in May 1980. It provides for a higher ratio in the use of ~nfident of achieving a 6596 operating rate in the next
various alternate energies such as nuclear power, coal, etc. dzcade as a result of the ~iffusion of relativel trouble-free
A MITI minister's notice, together with an "Import domestical:y redesigned plants and anticipat d technologi~
Guidelines" for industry, was issued on December 3
explaining the kinds of alternate energy that industries can ~~Provements in existing plants.
introduce in accordance with their business category, the MITI estim~tes the supply of coal, the major alternate ~
work process and the method of introduction. Following ~ergy, at 163.5 r*ullion tons, of which .imports will
this guideline, the government will develop alternate account for 143.5 milIion tons and domestic production 20
million tons. it expects th3t the demand, mainly from ~
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Tabie 2. Altemate Eneryy SupplY Targets (FY1990)
~ Adual Fi~ute ~ TO~s of 031 Ratio
E~tY (1.0001~ (96)
W~ter power 123 billion IcWh 31.900 4.6
- GeothmrtW ?.3 mi7lion kl 7.300 1.0
Domestic oil/ 9S ~~n k~ 9,500 1.4
naturalgai
Domescic ooal 20 million tons 14,900 2.0
Nuclar power 29i billionkWh 75,900 10.9
~mported ooal 1g3.5 million tons 108,70G 15.6
, (prdinuy ooal) (56 million ton~)
~G 45 million tons 635~ 9�0
- O ers~ 38S million tons 38,500 S~
Sub-total 350 million kl 350 million kl 50.0
366 millankl 366 million kl 50.0
Importod oil (350 million kl) (350 million kl)
716 million kl 716 million kl 100.0
- Supply Total ~~00 million kQ (700 million kl)
i~ote: Figures with~ puentheses in imported oil category
indicate volume of demand, the ratw having been
calcutated on the basis of thase figurea.
power plants, for ordinary imported coal will double to 56 sector. As a result, the share of petroleum thermal power
m~7lion tons, while that. for coking coal will double to 87.5 generation will account for less than one-fourth of the ov+er-
m~7lion tons. a11 ~ower generation structure at the end of 1990 and -
Following the November 28 cabinet decision on alter- rank with nuclear power in siu of share.
' nate energy supply targets, the Atomic Energy Council, 'rne powa suppty targets compiled in Deamber 1979
_ headed by Ichiro Nakagawa, d'uector genera] of the Defense by the supply and demand subcommittee of the Electric
Agency, published the following statement appealing for projects Councal are based on the provisional oudook of the
the pre-notion of the development of nuclear power Comprehensive Energy Study Councal Supply and Demand
, generation: Committee. The target for nuclear power generation
"Nuclear power generation is the most promising and volume ia put at 268,0~0 million kWh to 291,000 million
- realistic of all the alternate energies, but the problem of k~ ~ fiscal 1990. In all sectors, with the exception of
location is proving to be a bottleneck. For this reasons as a m in u and LPG wer eneration both the u r and
means of promoting progress, 1) assistance will be given to p g P P� g ' P~
lower limit figures are listed.
public relations activity from the initial state of site In contrast, the latest power supply targets, although
location, 2) if necessary, the government, on behalf of the b~d on the tar ts of 1979, have been raised to the
power companies, will commission a third party organ to g ~ -
hi~est level in the entire nono~ sector with respect to
conduct a study on site location, and 3) assistance of a kind vo ume of power generation, thus encouraging the power
that local governments can accept on their own initiative ~mpanies inereasingly to move away from the use of oil.
will be provided. As a result, the nuclear power supply target has been
Share of Petroleum Therrr+al Power Generation raised from the 1979 low of 28.6�Io to 31.1%; coal, from
Let us survey the power supply targets up to fiscal 1990 10.196 to 11.196; ING, from 18.29(o to 20.1%; water power
as incorporated in the foregoing alternate energ,y tupplY from 11.596 to 12.396; and geothermal energy, from 1.4% to
targets. These targets were published by MIT'! and are based ~�~On other hand, the oil su 1 tar et has been
~ on the power supply targets compiled by the svpply ar?d lowered from the 1979 ceilin of 2~,U00 million kWh to
demand subcommittee of the Electric Projects Council at the lower limit of 18,000 million kWh. Thus the shaze for
the end of 1979. 1) The volu;ne of nuclear power in the volume of ower eneration w~l decline from the
generation in fiscal ]990 is set at 291,000 million kWh, and P B _
coal, 104,000 million kWh, the power generation volume of 1979 ceiling of 26.0% to 193�6.
the non-petroleum sector being raised to the 1979 target In the cor:~position of power sources at the end of fiscal
ceiling, 2) Oil power generation is pegged at the lowest level 1990, only nuclear power in the non-oil sector has lower
of 181 000 million kWh. Petroleum thermal power genera- and upper limit targets similar to those in 1979, the figure
tion is targeted at 53 million kW as compared t~ the upper ranging from 51 million kW to 53 million kW. Other power
level figure of 59.5 million kW in 1979. The targets are source targets are the same as the 1979 ceiling figures. ~
characterized by hikes in the ratios of the non-petroleum
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Specifically, the target for coal has been raised from the many of the plants operating at almost full capacity.
lower level of 22 million kW to 23 million kW; LNG from On the other hand, the conversion to other forms of
40.5 million kW to 43.5 million kW; w~ter powcr from 50 energy have necessitated new technology, such as coal
million to 51.5 million kW; and geotherm~l energy from 20 liquef~ction, which, together with the LSI (Large Scale
' million kW to 30 million kW. Of the fongoing, general ~tegrator) revolution in the electronics industry, is proving
water power has bsen increased from 23 million kW to 24.5 to be a new stimulus for tec.hnological innovations.
million kW. ~ any case, an energy changeover sufficient to rock the
In contrast, the targets for oil, which were set at a high ~untry to its foundation is under way. It would not be an
of 59.5 million kW and a low af 51 million kW in 1979, ~xaggeration to call it an "industrial revolution" in terms of
have been lowered to 53 million kW and 51 million kW, ~~~~ce ~d scale.
respectively, the same level as nuclear power. 'The ctiling According to estimates of the Council on Promotion of
share has also been reduced from 1979's 25.8% to 22.996. Comprehensive Energy, the cost of energy conversion,
Even at the top figure, the target for oil is expected to be ~cluding the stockpiling of petroleum and energy-saving
less than one�fourth the overall composition of power measures, from 1980 to 1995, will amount to as much as
sources. ~230,000,000 million (~155,000,000 million in ter:..~ of
- 1979 costs). For the lower growth Japanese economy, it
Advances in industrial Retorm should prove to be a big sustaining factor.
Japar, is thus entering a new era of industrial reform. It
is a movement to switch its principal energy sources from Oil Conwmption Down
oil to coal, nuclear power and natural gas. In the past, when power consumption in the first half of fiscal 1980 was
the changeover was made from charcoa] to coal, and then down by 1% from the same period of 1979. In particular,
- to oil, the economy, the people's life and regional societies ~e volume of generation of thermal power stations fell by
- ;;f the country were greatly afPected. Now, influences just ~3.8% as a result of which an economy of 6.7 million kl in
as strorig are being felt. When will this alternate energy oil, etc. was achieved - one of the reasons for the present
- revoluticn be achieved? It will most likely take 20 or 30 ~~~~s of oil in Japan.
years, but when it is completed, ]apan's industrial map will ~e fact that there was no growth at all in the
have been cornpletely revamped and immense changes will consumption of power last year was due to: 1) the efforts
of both i~dustry and huuseholds to economize because of
have taken place in all areas.
Today, however, Japan's oil tanks are full, and still more the over 509'o hike in power rates in April; 2} the industry's
are being built in the vicinity of harbors where giant tankers cutback in produciion from April; and 3) the drop in
discharge their cargoes. In addition, enormous petroleum demand for air conditioners owing to the cool summer.
reserve bases are under construciton in coastal industrial If the drop in power consumption was largely due to the
areas such as Tomakomai Higashi, in Hokkaido, and Mutsu cool summer - a temporary factor - It would be unwise to
Ogawara, in Aomori prefecture. Each is large ?nough ta take a shortsighted view and ease off on the construction of
hold one or two baseball stadiums. The Japanese eco~~omy power plants. Also, the favorable utilization ratio (61.5%)
is thus showing a strong preference for petroleum, the most of nuclear power ptants in the first half of the year helped
convenient source of energy, and finding it difficult to to lower oil consumption, and the effects of the conversion
switch easily to any other fuel. to alternate sources of enerqy began to show up.
But with the price of oiJ having risen to over 530 a bbl. Consequently, there has been a surplus of oil, prices have
as a result of the lranian revolution, and wiih coal and turned sluggish, and despite the Iran-Iraq war, the situation
nuclear power generation now showing a clear price remains calrn in Japan. Efforts to switch to other forms of
advantage, it can be saia that Japanese industry has firmly energy have tended to wane because oil, after all, is
decided to switch to alternate sources of energy. extremely convenient.
Huge tanks to i~old LNG are being built one after the Japan, however, must convert to other sources of energy
oehcr in coastal areas, but they are not of the usual kind. because by depending on oil only, it would run the risk of
They are like thermos bottles, with heat insulating material placing its fate in the hands of the countries of ihe Middle
packed between double steel plates. East, a limited region.
Coal unloading platforms are being built on piers where Non-bulky, enriched uranium can be preserved within
coal carriers dock and coal carrying freight tr,~ins are che country for a long period, while coal is available from
increasingly being seen. In the Chichibu ctment areat for ~arious countries, such as Canada, America, Australia,
_ iristance, coal hauling trains have made a sVong comeback. China and the Soviet Union.
The power plants continue to generate electricity but Therefore, it would not be a judicious policy for Japan
- they are now moving from burning onl~+ oil to a mixture of to get av~�ay from oil altogether. Japan should operate
oil, coal and natural gas, nuclear power, coal and natural gas plants together with oil
77~ere is violent opposition to the construction of powered plants. It should establish oil tanks and maintain
nuclear power plants. However, the power companies are good relations with the Arab countries.
pinning even greater hopes on nuclear energy because ai the The indispensable condition for Japan in terms of the
time of the iate hikes in April 1980, those which possessed security of f.`?e nation ar~d economy is to use all types of
d~e rnost nuclear power plants carried out the Inwest rate energy, spreading ihe sources as widely as possible. It is the
increases and also because nuclear power generation is foremost reason for the need to steadiiy promote t2~e
progressing silioothly ~ince the ]atter half of last year, with revolution in altemate energy. p
= COPYRIGHT: 1981 The Nihon K~gyo Shimbun
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SCIENCE AND TEC~INOLOGY
GI1~NT STEEL IN~iiSTRY CLAIMS TOP WORLD POSITION
Tokyo BUSINESS JAPAN in English Jan 81 pp 79, 83, 87
~Article by Isao Izawa~
~Text~ jRON is the State. This state- 756,080,000 tons in terms of crude _
1 ment d'uectly represents the in- steel production. As for 1980, demand
fluence the steel industry has in indus- is expected to be on the same level.
trial circtes in Japan. Of this total demand, Japan meets
Though such representative indus- more than I5~/o by producing some
tries as the auto and household 110 million tons.
electrical appliance have ~own, As the U.S.'s steel output dwindled
their voices are not strong enough yet in 1979 due to the depression of its
to be equal to that of the steel economy, it is becoming apparent that
industry in ~apan. Conceming the auto Japan has become the largest steel
industry that is now gaining a larger producing country in the free world,
and larger share in the U.S. market and now exceeds the U.S.
with small cars, leaders of the steel Th~re is no doubt the brisk eco-
- industry say, "The auto industry has nomic activities of the nadon have
come into bloom only because the help~~ the steel industry to produce
steel industry continued to supply it such a large amount of steel.
with high-grade steel products on a Though demand for automobiles
stabilized basis." The pride of the has been leveling off recendy, the auto
people in the steel industry is well industry is still contributing gready to
represented by this statemcnt. the increasing steel output. Other
Both Yoshihiro Inayama, president factors that are helping the steel indus-
of the Federation of Economic Organi- try are the nation's shipbuffding indus-
zations (Keidanren), and Shigeo try (also strong in the world market),
Nagano, president of the Japan the household electrical appliance
Chamber of Commerce and Industry, industry, and public investments made
are concurrendy chairman and honor- by the government in the domestic
ary chairman, respectively, of Nippon market.
_ Steel Corp., Japan's top steel maker. Exports to the U.S. and other ~
We often hear such expres~ons as, countries in the worid are also con-
- "Steel controls the nation's indus- tributing considerably to the increased
tries." output of the steel industry.
Then how strong is the steel indus- The industry produced some I 10
try now? As Japan heavily depends on million tons of crude steel in 19?9, up
overseas countries for most of its raw 9.4% over the previous year and more
= materials for industnal production, the or less on che same level as in 1973
steel industry in .his way is perhaps when a peak-time output was
the most typical lapanese industry. achieved.
Production ~ Though not compiled yet, the steel
Demand for steel in the world in industry's crude steel output in 1980
1979 was estimated to 1;~ve been some is expected to reach some 107 million
tons.
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Despite being the top steel pro-
ducing country in the world, Japan is nations as the U.S. but also some
completely different from other steel communist bloc countries including
producing countries such as the U.S. the U.S.S.R.
because it has to import most of iron 'm~ ~tion's steel exports amount
ore and coal from overseas to produce to some S 15,000 m~lion a year. The
its steet. country assumes the top position in
It is a wonder, then, that Japan has s~al export in the world, far surpas-
established itsel~' as the world's top ~B ~?e 25 m~llion tons by West
steel producing country despite being ~T~?Y� Japan exports more than
a country without natural resources. one-third of its steel output.
Japan's steel industry processes 'fhe remazkable nature of Japan's
some 130 mi7lion tons of iron ore and ~~1 industry is its extremely high
some 52 million tons of coal into steel international compedtive strength
every year, all irnported. even though it has to unport most of
- Of the total iron ore imported its raw materials from abroad. .
every year, Japan buys 42.4~'o from ~~B advanced industrial coun-
Australia, 20.1~Io from Brazil, 13.1% tries, a predominant idea is that the
from India and the remaining from steel industry is now declining.
other re~ons of the world, thus assur- Tlus concept is especially strong in
ing a stabilized basis for production. the US. and no active mvestments are
As for coal, Japan imports 45.7% bein8 made in the industry there. This
from Australia, 24.8% from the U.S., is based on the judgment that it is
18.9% from Canada and the remaining ~icult to invest much money in -
from elsewhere. non-profitable industrial flelds such as
Japan thus produces stee! by pro- che steel industry. This may be the
cessing these imported raw materials logic of capitalists, but in Japan this
and adding value to them. concept is far less prevailing. A high
This being thr case, [herefore, level of investments, therefore, con-
should there be problems with the tinues to be made in Japan.
sources of these raw materials, steel Such active investments in the steel
production would be considerably af- industry lead to the construction of
fected. Those in the steel industry felt 1u8~1Y advanced steel mills on one
eztremely uneasy about [he security hand and pave the way toward the
of coal from Australia when strikes development of pioneering iron and
continued at coal mines in that coun- steel making technolo~es on the
try for a long period of time from last other.
July to September. These advanced technolo~es have
- One of the largest problems for the been the prime mover to produce
cheaper and internationally competi-
nation's steel industry is how the tive steel products.
government develops che nation's ln recent years, some representative
diplomacy with Australia, Brazil, the Ja~~ steel manufacturers have
U.S., Canada and other counuies in started to export even software related
order to assure stable supply of raw to steel making to such U.S. makers as
materials on a long�term basis. p~~, Republic Steel and U.S. Steel
Japan's steel industry's Achilles' from which they once induced tech-
heel is that it is heavily dependent nolo~es. The export of technolo~es
upon the moves of the countries from to advanced steel making countries is -
which it receives supplies of raw mate- expected to become more brisk from
rials.
now.
- In 1945 when World War II ended,
Ex~edominant in Japan is the con- Japan's steel industry started to re-
bu~d itself from nothing, and the
cept, "Steel is a strategic commodity
for export." It is true that steel is one remarkable growth of the nation's
of the most important export com- economy has brought this basic
modities for Japan along with auta industry to a top level in the world.
mobiles and industrial plants. A~cording to those in the steel
[n 1979, Japan exported some 31 industry, there ue now some 30 pro-
mllion tons of steel products. Their j~~s to construct steel plants through-
destinations include not only such free out the world, and in each one of
these cases, Japanese steel makers have
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been requested to extend cooperation Consequently, the yields of its '
in one form or another. products have improved, its produc- -
Plant and Equipment Investmenu tion costs have been reduced, and its
Japan's steel industry is now equip- international competitive strength has
ped with 65 blast furnaces, of which increased. _
43 are in operation, producing some ~ fact is related not only to the
110 million tons of crude steel every industry s products but also to its
year. Though all the biast furnaces are export of steel plants. Especially
not in operation, plant and equipment ~ong advanced steel making coun-
investments are still active in the ~es such as the U.S. there aze many
industry. people concerned with the steel indus-
:ry who place great expectations on
Ssch investments in the steet indus- the induction of kn^~vhow to manage
try have registered the following ~~1 productior. established by Japan's
figures in the past decade: steel industry.
In 1970, '~852 billion or 17.9% of 'I'he conventional concept long held
total plant and equipment investments by foreigners that the Japanese steel
in all industries; in 1971, some ~�770 industry developed thanks to the low
billion or 17.6~'a, in 1972 some ~�b50 wages of its workers has been totally
billion or 15.2%; in 1973, ~590 b~lion ~~ated.
or 113'0; in 1974, some '~896 bi1L'on or -
13.9%; in 1975, some ~�1,100 b~llion prospects
or 19.1 %a; in 1976, about ~ 1,300 Though Japan's steel industry has
billion or 20.3%; in 1977, some ~�690 ~y ~med a top position in the
billion or 11.2%; in 1978, some ~590 , world, it is doubtful that it can main-
billion or 8`~0; and in 1979, some ~650 ~ its position for long.
billion or 7.6%. pomestically, its mazket re-
The steel industry's ratio against -
, presented by the auto industry has
the nation s total plant and equipment reached a satwation point, wtule inter-
investments have ranged from a mini- ~~onally developing countries aze
mum of 7% or so to a maximum of ~ i~ ~tchin u Steel itself is
more than 20% over the past decade. P Y g p'
- The industry has assumed a yearly losing its characteristic as a strateac
average of more than 10%. export commodity. Though Japan's
In the first half of the 1970s, the steel industry is now holding the top
- industry's emphasis on such invest- position in the world, its export of
ments was placed on increased output, s~~l plants to developing countries is
but in the second half of the decade, likely to lead to the danger that it
investments were made on rational9za- could be surpassed by developing
tion or modemization of facilities. countries in the future.
~~I ~~g W~ an~po~t Once Japan's steel industry starts to
tar~~t of such investments. recede in the export market, this
As a result, extensive rationaliza- would lead to the retreat of Japan, an
tion of production processes has been industrial nation, itself. The environ- _
achieved on one hand, and divers~ca- ment of Japan's steel industry, espe- -
don and enhancing the grades of its cially the industry's cooperative rela-
products have been materialized. tions with its counterpart in other
Development has been seen also in countries, has become more and more
the improvement of blast furnaces and romplicated. It will be necessary for
convarters and much progress has been ~e nation's steel industry to re-
witnessed in new technologies such as examine its relationships with its
continuous casting. Combined with ~unterparu in other countries so that
computers, iron and stcel making pro- it can more firmly establish itself while
cesses have made phenomenal progress still contributing to the further devel-
as total systems. opment of the world economy. p
COPYRIGHT: 1981 The Nihon K,ogyo Shimbun
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SCIENCE AND TEC~IIJOLOGY
ACOUSTIC MICROSCOPE OPENS NEW FIELDS TO ANA.LYSIS
Tokyo BUSINESS JAPAN in English Jan 81 p 130
~Text~
TT was about 30 years ago that the Applications of ultrasonic waves
A idea of observing things by sound }1ave made amazing progress in the
emerged. The idea, however, could not pyist several years. Such waves hav~e the
find practical application in those days property of penetrating some objects
because no technique was then avail- ;~hich aze impervious to light and
able to generate ultrasonic waves of electron beams The higher the fre-
high frequencies. quency, the better the achieved resolv-
LJltrasonic technology has made ~g power.
giant strides in subsequent years. The Furthermore, ultrasonic waves give
most important step was made in 1973 ~'ormation on the internal structure
- at Stanford University in the United of objects nat available from optical
States where the world's first ultra- devices, because some physical proper-
, sonic microscope based on mechanical ties of the objects, such as elasticity,
scanning was made. This intensified density and viscosity, are imparted on
research efforts throughout the world. ultrasonic waves. The acoustic micro-
Hu~es Aircraft of the U.S. sub- ~ope makes use of these ultrasonic
sequently successfully developed an v~rave characteristics.
acoustic microscope. In Japan, Olym- T'}le working principle of an acous-
pus Optical Co. perfected the first trial tic microscope is as follows: A piezo-
model (using 200 MHz ultrasonic electric film is excited by pulses from
waves and achieving an azimuth resolu- frequency carrier waves, causing
tion of 5 mic;rons) at the end of March it to generate ultrasonic waves. They
1980, and delivered it to Tohoku are sharply focused by a spherical lens
University. All of these early models ~d ~~ted onto the test sample
failed to attain full-scale commercial- w,~ch is moving two-dimensionally so
ization because of yet-to-be-solved en- ~ to ~~~ed by the ultrasonic
gineering problems. waves. The waves reflected from the
In the meantime, Hitachi had per- ~Ple are picked up by the sensor
fected the world s first acousUc micro- ~ction and converted into electrical
scope with interference mode and us- s~~s
ing 1 GHz (1 biilion f~iz) ultrasonic pievious acoustic microscopes
waves. Unlike previous acoustic micro-
scopes, Hitachi's new model can "see" ~uld work with ultrasonic frequencies
in the depth ot over 0.3 microns at of 200 MHz at most, since the manu-
high resolution thanks to its inter- facture of acoustic lenses was cumber-
ference mode. some. Azimuth resolving power and
This enables a detailed observation depth resolving power stayed at about
of minute variations of the intemal 10 microns and 5 microns, respec-
structure of semiconductor devices, tively. These resolving powers have
been raised to 1 m~cron and 0.3
living organisms and metals. The new micron, respectively, in Hitachi's new
acoustic microscope is expected to be pr~duct by applying ultrasonic waves
placed on the market in a few years. of higher frequency.
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This microscope is expected to play fully overcome through the develop-
a vital part in the inspection of semi- ment of a lens of extra snall aperture
conductors. Recent semiconductors for focusing ultrasonic beams below 1
" have become extremely minute and micron wavelength.
_ complex in structure throcgh the prog- 't~e newly developed sample table
ress of technology. Many of them have features extremely small vertical shift
a multilayer structure. Extremely fine (below 0.05 micron) during scanning,
inspection is needed for rejecting de- ~~t images of very high quality are
fective products and collecting design obtained.
data. The new acoustic microsco e can
Development of an acoustic micro- ~ applied with advantage to (l~medi-
scope enabling the observation of the ~e and biology, and (2) physics and
fine multilayer structure of semi-
conductors was the target of Hitachi's engineering.
In the field of inedicine and bi-
research. Higher resolving power and a~~,~ ~e sample need not be dried as
direct observation of multilayer struc- for electron microscopes or dyed as
ture involving aluminum wiring and for optical microscopes. Cells and tis- .
insulating layers have become possible sues can be directly observed.
through the application of 1-GHz The acoustic microscope will open
waves and the interference mode. the way for quantitative analysis of
Oscillating frequency of the piezo- ~e ~a~cteristics of inedical
electric film is the decisive factor in ultrasonic diagnostic equipment now
achieving high resolving power. Hitachi widely in use.
has solved this problem by developing ~ey p~ove useful in phys- -
a high-performance piezoelectric film ~d engineering where they offer a
generating a frequency ef l GHz. means for noninvasively examining
However, higher frequency is at- minute samples, including the struc-
" tended with the difficulty that ultra- ture of inetals and the subsurface
sonic waves are more easily attenuated structure of semiconductor devices. p
in the intervening medium between
the sample and the sound-collecting
lens. This obstacie has been suc:,ess-
COPYRIGHT: 1981 The Nihon Kogyo Shimbun
CSO: 4120
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SCIENCE AND TECI~iOLOGY
FUJI FILi~i MP,KES USE OF AI~OKPHOUS SILICON P~WDER
_ Tokyo BUSINESS JAPAN in English Jan 81 pp 128, 129
~ExcerptsJ Amorphous Silfcon Powder With Outstanding Photoelectric C~aracteristics
(Fuji Photo Film Co., Ltd.)
Fuji Photo Film Co. has established is obtained. Flexible and large�area
a manufacturing process for amor- photo-receptors for a variety of uses
phous silicon powder with ouutanding ~ be made by mixing this powder
photoetectric characteristics. It can be with or c hi ol mer substances.
l~ed to the hoto-cells of ~ ~~p Y
aPP P h'8h' Its main application is expecied to
performance copying machines and be the photosensitive plates of elec-
c'her photo-sensors. tronic copying machines. Photosensi-
Although amorphous s7icon pow- tive plates are made at present by
der has been known for some time, its evaporating se(enium on a cylinder of
physical properties or practical appl'r aiuminum or stainless steel, but the
cations were never studied in earnest. development of moc~e efficient photo-
Now Fuji Photo has discovered sensitive materials has been awaited
through its research that powder-form 2he great increase in demand for
amorphous silicon with s$ec~c resi~st~ copying work.
ance lying between 10 and 10 The new photo-receptor, developed
Ohm~cm can be readily produced. The in response to these needs, can repro-
- company has succeeded in developing duce intermediate tones, which cannot
photo-receptors used for various appli- ~~mptished by conventional sele-
cations by mixing the new amorphous nium photosensitive plates. Copying
~licon with organic high-polymer ma- that is almost indistinguishable from
~~g� photography becomes possible by
The powder itself is made through combining with a suitable toner, the
the decomposition of silane gas by ~mpany claims.
means of glow discharga Spec~c re- Furtnermore, this silicon powder
sis~ance can be varied in the range of ~ light sensitivity resembling that of
10 � 10 Ohm/cm by adjusting the human eye, so that its use as
manufacturing conditions such as gas photo-cells for cameras, for illumina-
pressure, flow, umperature and the don photometers and for actinometers
power of high-frequency current ap- ~ p~ible. The maker intends to work
plied to the discharge. toward eventual commercialization by
Powder of hydrogen dope rype developing various uses for the prod-
with particle size of about 0.1 microns uct.
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New Technique To Isolate Ethanol Through Special Diaphragm
A new technique to isolate ethanol not consume as much energy as distil-
(ethyl alcohol) dissolved in water has ]ation. The new process will thus be
been perfected by Assistant Professor ~eatly welcomed.
M. Tamura of the [nstitute for Solid 'I'he heart of the new process is a
State Physics, Tokyo University. The hydrophobic porous diaphragm com-
proceu is accompanied by far less con- b~ ~ylidene fluoride, radicalized
sumption of energy than conventional teflon and teflon. If water is dropped
distillation processes. on a hydrophobic surface, it becomes
The sepuation takes place with a a~iny sphere tluough the repellent
special diaphragm. The process is so force of the surface. Thus water mole-
effective that alcohol can be separated cules are stopped on the diaphragrn -
even from beer and 92% ethanol is surface while ethanol molecules with
obtained in this way. lt offers the smaliea viscosity freely pass through its
possibility of obviating completely the po~~. The condensadon ratio is as
previous distillation process regarded ~ 9~,~qo,
as indispensable for the manufacture In the new process, the separation
of ethanol. ~ is expedited by imparting microwave
Research is progressing throughout vibrations to the diaphragm. Vibration
the world on transforming biomass is generated through a high-frequency
into ethanol. The central theme has current of 100 - 1,000 kHz applied to
been the development of a new al- the diaphragrn through an electrode.
cohol condensing process which dces
Powder Paint Lengthens Service Life of Heat-Collecting Plates
Kuboko Paint Co. has developed adopting a smaller particle size. This
"Nisshin Solar Coat" (trade name), a not only reduces heat absorpti,on loss
powder paint which imparts high per- but also enhances considerably the
formance and durability to the heat- absorption speed and durability.
collecting piates used with solar Conventional heat collecting plat;:s
houses. for solaz systems are made by sintering
This powder paint also contributes matte paint on base plates of stainless
to the saving of natural resources and steel, aluminum or copper. They are
the prevention of environmental pollu- encumbered by low weather resistance
aon since it can be applied electro- and short service life (2 - 3 years).
statically, and any paint lost in the Their heat absorpdon ratio is 92% at
painting booth can be recovered. most.
Solar Coat for heat-collectors is On the other hand, Soiar Coat has a
mairily composed of thermosetting service life of about 15 yeazs. The heat
polyester resin with a few additives absorption ratio has been raised to _
including carbon. Its composition is an 953'0 or more. Even if the hot water
industrial secret. supPly rystem becomes empty and ohe
Whereas it was regarded as impos- plates are overheated to I50 - 200 C,
sible to reduce the coat thickness of ~t dces not come off the plates.
powder paints below 50 microns, ~ p~t cr sts about '~72 per m' ,
Kuboko Paint has succeeded in reduc- w,}uch is cheaper than conventiona'.
ing the thickness to 30 mi~rons by praducts.
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_ Gas Absorbing Heat Pump System Saves Energy
The first gas absorbing heat pump of the equipmtnt was undertaken by
system has been perfected by Osaki Tokyo Sanyo Electric Co.
Gas Co. with the cooperation of To- The newly developed system works
kyo Sanyo Electric Co. in the s~me manner as an absorption-
This system produces hot water of type refrigerator. High-temperature
90�C (maximum) from effluent water water is produced from low-tempera-
of about 30�C through heat exchange. ture water by heat transfer using +vater
It achieves a 5096 energy saving com- as the coolant and the aqueous solu-
pared with the conventional method tion of lithium bromide as the absorb-
based on steam heating with a boiler, ing fluid. The fust rystem developed
Osaka Gas claims. so far recoveres heat of about 332,000 ~
In developing the new heat pump kcal per hour, ar,d obtains water of
system, Osaka Gas had to consider the 80�C from effluent wate: of a dyeing
following engineering problems: (1) plant at about 40�C. The equipment
how to measure the flow and tempera- cost of about ~�20 mfllion is claimed
ture variation of low-temperature ef- to be recovered in about 2.5 years.
fluent water, (2) study of corrosion by Osaka Gas intends to produce 40
low-temperature effluent water and units of this system in the initial year.
the material of the Iteat exchanger, It will undertake sales compaigns sim-
and (3) the heat balance of recovered ed at prospective customers such as
heat and the operating method suit- factories, bathhouses and hotels regu-
able to that balance. The manufacture larly discharging lukewarm effluent
water. O
COPYRIGHT: 1981 The Nihon Kogyo St?imbun
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SCIENCE AND TECHNOLOGY
NICKEL-ZINC BATTERY DEVELOPED FOR II.ECTRIC CARS
Tokyo NIHON KDGYO SHIMBUN in Japanese 15 Dec 80 p 1
[Text] According to the disclosure on the 14th by the authorities concerned,
- the Japan Storage Battery Company (presidPnt, Motoshige Sakata), which has
been involved in research for an electric vehicle (EV) new storage ba ttery,
has succeeded for the first time in th~: world in developing an epochal
"nick el-zinc battery" which is lighter and can be used to increase driving
dista nce two times or more over the conventional lead battery. The hardest
prob lem relating to electric vehicles which are expected to be the real
answer to "oil-independency" is the development of a new battery which can
rFplace the low energy density lead battery. Manufacturers in every country
in th e world, a nd of course manufacturers in Japan, and GE and Gulf and
Western in Amer ica, have been engaged in fierce compeiition in order to -
develop a new battery fcir practical use. With this backdrop, the JS$C has
demonstrated that a veh~cle loaded with this new battery achieved fantastic
performance results in 40 km/h highway driving tests, a one-charge driving
dista nce of 86km (lea:i battery 38.6km). The new battery promises to serve ~
the propagation and promotion of electric vehicles to a great extent in
- the days to come.
The " nickel-zin c battery" is an alkali secondary battery which usea nickel
for the anode ans zinc for the cathodE. Other theoretically feasible new
batteries which can replace the lead battery are "nickel-iron" and "zinc-
chlorine" batteries. Compared to those, this battery is characterized with:
(1) high discharge voltage, (2) high energy density, (3) high discharge
capability, and considered to be the top contender among the batteries to
be used for electric vehicles. However, on the other hand, there are plenty
of p roblems to be resolved before practicalization due to the use of zinc
electrodes, for instance, reduction of capacity caused by the elution of
some reaction products into the eJ ectrolyte durin.g discharge and by the
pro duction of dendroid zinc during charging.
The new battery developed by the JSBC this time has solved all the problems -
assa ciated ~ith this phenomenon by improving the electrolyte, developing a
zinc electrod e hard to elute and a3opting a special separator with a low zinc
mineral ion permeability. This battery which uses a six cell monoblock
electrolytic b ath encompasses an energy density of 62 kw/h per kilogram,
approxi~natel.y two times more than the lead storage battery and trimmed in -
gros s weight b y 30-50 percent to 28kg per one unit.
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The JSBC conducted driving tests using a veh icle loaded with five of these
new batteries (gross weight 140kg) and demonstrated that by,one charge the
_ vehicle could be driven 86km in highway driving at 40km/h and 751an in city
driving, a performance 2.3 times better than a vehicle loaded with lead
batteries .
Speaking of new L�'~l batteries, GM invested $33 million last year to develop
a"zinc-nickel battery." Gulf and Western, the Amesican conglomerate,
- announced a"chlorine-zinc battery" this year. Neither company disclosed
their demonstration test data, and the batteries weigh close to five times
more than that of the JSBC.
The battery may well be practicalized as it is, but the JSBC intends to
improve it in respect to its further weight rPduction and extension of charge
- and discharge lif e cycle before mass production which is scheduled within a
few years. The related industries will eventually give attention to this
development since it is very likely that electric vehicles will come into
wide use much faster than expected with thj.s invention.
~ Ss+ /34~~}jYi iyi ,~t .~n.;4
>~'i~f q{ s~ ~ ~ ~r~~,''~~ 4r ~a~ `~~~f^~Y~~ ~.7
s ~ ' i ' ~1 '
~
.
; .
S>:
,'=t
~
New Battery (for EV) with high performance twice that of a Lead Battery
COPYRIGHT: Nihon Kogyo Shimbunsha Tokyo Honsha 1980
8940
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~
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SCZENCE AND TF'(~NOLOGY
HOUSING STARTS DETERMINE DEMAPID FOR GALVADTIZED SIiEETS
Tokyo BUSZNESS JAPAN in English Jan 81 pp 89, 91, 93
[A,rticle by Shigeo Yabe, executive director, Japan Galvanized Iron Sheet Export
_ Cooperative~
~Text~
T HOUGH Japan's output of galva- piiances, and other items This has
nized stee: sheets has increased markedly increased their output. It is
- year after year as shown in Table 1 expected that because of their eco-
due to the stagnancy of housing reL~t� nomical nature, durability and from a
ed industries in 1980, the output of standpoint of saving resocrces, de-
- both galvanized steel sheets gnd mand for galvanized steel shats will
colored galvanized sheets is expected further expand.
- to go down. Our industrial circles are exerting
more and moro effocts in order to
meet the increasing demand, improve
Table 1. Output of Galvanized ~e quality of products and heighten
Steel Sheets in Japen ~u ~d~, Research and develop-
ment are in progress in the industry in
1975 a.3 million cons order to ship to the ir.arkets products
1976 5.8 that are not ~nly highly economical,
1977 5.9 anti-corrosive and eary ta process, but
1979 ~ 6,9 I ~1so long lasting, and easy to paint and
weld as high-grade materials. As fnore
~~~9 ~Pi ~ 5.27 and more higher grade products con-
tinue to be required, galvanized steel
sheets and especially sucface treated
steel shcets can he said to be promis-
Of the above total output for each ing.
year, some 30`,"'0 or 2 million t~~ns or so There are many types of galvanized
aze for export to various parts of the steel sheets, which can be roughly
world including North Ar*ierica- ~ded into types by manufacturing
Trends in those overseas markets, ~thod. They include fused galva-
_ therefore, largely affect tbe nation s ~ed steel sheets, ,unong them galva-
output. nized iron sheets ~JIS G?302), fused
As is well known, though previous ~~ed steel sheets and alloyed
demands for galvanized steel sheets ~~~yed steel sheets; and electro- -
were mainly from the construction plated stecl sheets (JIS G3313).
industry for use as roofing materials Furthermore, on the basis or these
and exterior fuushing materials, along products, there have been developed
- with technical progress and qualitative many varied products such as colored
improvement in the galr�anized steel gaivanized iron sheets painted by bak�
sheet industry, these sheets have start- ing with rynthetic resin paints, printed
ed to be extensively used for auto- steel sheets printed with ~arious pat-
mobiles, household electrical ap- terns, polyvinyl chloride steel sheets _
coated with P'VC and insulating galva-
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nized steel sheets surtaced with in� meter boxes, lighting equipment, rice
sulating materials such as urethane boilers, washing machines, dryers,
foams. These products developed for automatic vending machines, etc.)
_ varied use~ have undergone secondary For civil engineering: (guard rails,
and tertiary processings. One product corrugated pipes, deck plates, etc.)
that is attracting wide attention is For machine parts: (various forms
galvanized steel sheet which has of frames, acros, covers for machines
undergone cold pressing. One side of and equipment, etc.)
this sheet can be easily painted and For agriculture: (silos; drying fur- -
the other side is highly anti-corrosive. naces, panels, catde sheds, containers,
In 1979, some revisions were made etc.)
on the standardization of both galva� As for demands for galvanized steel
_ nized steel sheets (JiS G3302 - 79) sheets in 1979, the consWction indus~
and colored galvanized steel sheets try assumes the largest ratio of 55% -
(JIS G3312 - 79) to meet the varied (including 11.5% for roofing and
needs of customers. Major points in 14.4% for sidings), which is followed
these reyisions are as follows: more by airconditioning ducts with a ratio -
subdivisions of classificatiens of prod� of 16.9%, etectric machinery, 13%,
ucts by use; prescriptions on the quali� civil engineering works, 16.6%, and
~ ry of products according to uses and others, 15.4%. As for demands for
- incteased quality of producu; pre� colored galvanized steel sheets, the
scriptions on the minimum volwne of construction industry occupies the
zinc to be used; and induction of largest share of 92.6% (mainly for
standards for roofing industries. roofing and sidings). Regionwise, the
For details, please refer to JIS Tohoku District and Hokkaido assume
G3302 and JIS G3312, 1979. a majoriry of demands.
The major uses of electroplated -
iVlajor Uses of Gaivanized Steel Sheets galvanized 'uon sheets are for interior .
Uses include: finish, furniture, office machines,
For construction: exterior finish automobiles, electric machinery and
work (roofs, exterior walls, curtain panels.
walls, rain doors, arcades, etc.); inter� We have already mentioned that
ior finish work (walls, room dividers, Japuri s exports of galvanized 'uon -
decorated plates, interior decorations, sheets asaume about one-third of its
etc.); and structures (deck plates, light� total output or about 2 million tons.
~~+ei~t shaped steel, etc.) Japanese-made galvanized steel sheets
or furniture: o~ce fixtures have won wide acceptance throughout
(desks, shelves, lockers, cabinets, filing the warld because they are good in -
cases, etc.); containers (for rafe-kcep~ quaiity, high in grade, rapid in delivery
ing goods, apparel containers, cup~ and proper in price. Consequently
boards, dispiay cases, etc.); and miscel� they are very popular among overseas
laneous goods (buckets, dustpans, users. As a result, Japan's exports of
washbowls, etc.) galvanized steel sheets assume about
For automobiles: exterior fu~ish haif of the total ~nde of such products
_ work (bodies for buses and trucks, among major countries in the world, _
etc.); portions surrounding wheels making the country the world's top ~
(floors); interior finish work (interior supplier.
fuilsh, dashboards, etc.); etectric fur� In 1979 when Japan exported some -
. ;~ishings (air cleaners, oil cleaners, 2 nvllion tons of galvanized steel ~
various covers, etc.); and tanks (gaso� sheets, the total export of such prod- _
line tanks, oil tanrs, etc.) ucts by major countries in the world
, 4~'or transport machines: railway was only 4,120,000 tons, indicating
rolling stock (panels, ceilings, etc.); that Japan assumed 48% of the world's
and sh:ps (interior finish, duc~s, total exports. (See Table 2)
panels, containers, etc.); As indicated in Table 2, though
- For ~lectric machines: kitchens [taly'4 and the U.S.'s exports de-
(ovens, refrigerators, coolers, kitchen creased by ;36.5% and 23.3% respec- ~
sets, etc.}; air conditioning (heaters, tively in 1979 from the previous year,
etc.); and communication and power those by other countries showed a
(switchboards, panels, switchboxes, stig3it uicrease, increasing the total by
. . . 1.4g'o.
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Though the U.S., Belgium and America, and Oceania.
- Britain showed a~ecreasc in imports In ratios against the previous ytar,
by 6.6~0, 17.9% and 14.1% respec- lapan's exports to [he Middle and
dvely in 1979, those of France, [taly Near East increased by 2.5% in 1979,
and W. Germany increased by 10.9%, and those to Africa, Oceania and
52.7~o and 8% respectively. Thus over- Europe showe~ a slight increase. But
all imports showed a slight increase of those to North America decreased by
- 1.5%. 2.99'o in 1979, and those to Southeast
Japan's imports of galvanized steel Asia and Central and South America _
sheets became negligible, and Japan showtd a slight decrease.
became more and more an exporting [tem-wise, exports of coils as,su.med
country. the largest share of 48.73'a (50% in
The destinations of Japanese-n.ade 1978), which were followed by flat
galvanized steel sheets in 197a were sheets, 38.3'~ (26.SM), corrugated
North .,?merica with a share of some sheets, 9.796 (9.7�G), electroplated
50%, and Southeast Asia and the galvanized steel sheets, 7.5~'0 (5.1%),
Middle and Near East with shares of colored galvanized stee! sheets, 4.3%
1.6% respectively. These ar~ followed ~5.1%), and belts, 1.5%(2.0�!0). p
by Africa, Europe, Central and South -
Table 2. Trade in Galvanized Steel Sheeu by Major Countries
(in 1,000 tons)
Exports Imports
Ratio Ratio Rat'a Ratio
i Country 1978 I ag~~ 1979 ~~~st 1978 a~~ 1979 ~ainst
previou previous prehous prev~ous
yt. yr. Yr. yr.
_ i lapan I 1.986.6 I 89.3% I 2.001.8 100.8% 0.1 - - - -
U.S. I 48.6 ~ 169.3 i 37.3 ~ 76.7 1,393.0 102.7~ 1.301.0 93.4%
W. Germany 655 S~ 111.7 698.2 1065 268.0 ~ 104.8 289 5 108.0
~ France 413.4 136.0 434.11 105.2 195.3 100.6 2165 110.9
~ Belgium 640.3I 111.5 668.8 104.5 45.9 95.4 37.7 82.1
Britain 177.6 145.8 189.4 106.6 189.2 134.8 162.6 85.9
ltaly laa.8 ISb.6 I 91.9 63S 99.1 72.8 150.8 152.2
Total 4,066.8 103.8 4,122.1 101.4 2,190.6 102.8 2,IS8.1 98.5
Table 3. Japan's Galvanized Steel Sheet cxports by Country
Destination !979 (A) 1978 IB) (A) - (a)
$outheast Asia 16.6�0 17.8`70 -1.23'0
btiddle & Near East 16.2 13.7 2S
~ Africa 7.6 6.8 0.8
_ i North America j Sl.l 54.0 I -Z�9
Central South America ~ 2.7 3.0 -0.3
~ Omnia ~ 2.3 ~ 1.8 0.5
~ Europe I 3.5 2.9 0.6
Total 100.0 100.0
COPYRIGHT : 19$1 The Nihon K,ogyo Shi~un
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SCIENCE AND TECfIIdOLOGY
JAPAN'~ SMALL TOOLS PIAY BIG ROLE IN INDUSTRIAL EXPANSION
_ Tokyo BUSINESS JAPAN in English Jan 81 p 113
~Article by Kunio Owad.a, director, Japan Small Tool Makers Association~
~Text~
W ITH the advent of the New Year The favorable export trend also
1981, the machine tool industry covcrs automobiles, household electric
in Japan u looking forward to the app(iances and electronic products.
sixth yeaz of censecutive expansion Expor;s of these products aze now
following a 20�!o growth last year in causing tcade fricdon abroad, and in-
spite of general business stagnation at dustries are seeking possibile ways for
- home and abroad. peaceful coexistence in the milieu of
- The fast growth factor i~ rhe ex- free competition. Under the circum-
pansion of equipment investments, stances, economic acrivities are ex-
which may be classified as follows: pected to stay on a relatively high level
1. Industries which have finished for some time to come.
che fust�round development of energy- On che other hand, there are a ~
saving technology have now started number of negaave factors including
full-scale equipment investments. the s~uggish international economy,
2. Diversification of needs and the the slowdown in general consumption
progress of series production are and the stagnation of public enter-
stimulating the development of NC prises. The machine tool industry with
machines which make these chang~es its multiple and close dependence on
possible. other industries must be aware of
3. The need for labor saving and these negative and disturbing trends.
rationalization for increased produc- Let us turn our attention from the
dvity has impressed itself forcibty on quantitative side to the qualitative side
the consciousness of industrialists in of the growth possibilities.
management streamlining for the past The following fields in Japan re-
several years. quire an extremely high level of tech-
~ The boom is not expected to end in nology:
a short time, since invesirnents of this 1. Technological aspects of the
rype are far-reaching. ~nall-car competition,
The second growth factor is the 2. Development of aircraft and
e brisk export centering on machine space industries,
_ tools. Japan's machine tools aze enjoy- 3. Expansion and realization of
= ing a boom. Their export ratio has higher performance in the electronics
= surpassed 40% consecutively in the industry, and
_ past several years. 4. Ressearch and development of
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energy to replace petroleum and ener- ers Association in an emironment =
- gy saving efforts in all industries. ~y~~ pn by no means be consi~ered
All have contributed to bringing as completely optimisric.
about a transformation in materials for 'I'he industry has set as its target the
machine tools and induad efforts for quick response to the continuing
enhancing machining precision and stream of txhnological innovations `
performance. The qualiry of machine ~d to variegated new needs, establish-
tools must be raised incessandy. ment of enhanced reliability of ma-
The Japan Small Tool Makas As- ~e tools, and fostering of the prog- `
sociation is fully aware of these nceds. ~ess of inteaelated industries.
Japanese machine tools belong to the I~ to conclude my greeting by
highest level in the world as to quality ~,y~ng ~ of you a happy New Year, -
and performauce. But we must not as our industry hopes, with your sup-
relax our efforts for further improve- po~, for the continued growth of the -
ment in response to higher demands. Japan Small Tool Makers Association.
Against this background, the New p _
Year finds the Japan Small Tool Mak�
COPYRIGHT: 1981 The Nihon Kogyo Shimbun -
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SCI j'NCE AND TECEi~IOLOGY
MACHII~IE TOOLS SUPPORT INDUSTRIAL ACIiLEVEMENTS ,
Tokyo BUSINESS JAPAN in English Jan 81 pp 105, 147, 109, 111 ~
~Article by Naoyuki Sato, Machinery and Information Industries Bureau, Ministry
of International Trade and Industry)
~Text~
THE world economy, hard hit by go~ Japanese steel too:s and
successive increases in oil prices, cemented carbide tools stand at a high
is suffering from inflation and business international technical level, with
recession. [n the field of trade, there is diamond tools having the greatest
great concern over trends toward pra growth potential.
tectionism among the develo~ed The value of machine tools pra
; nations, despite the agreement on the duced in 1979 was ~180 billion, a
framework of th~ world economy record 24% increase over the preceding
reached as a result of the Tokyo year due to the growth of electronics
Round of trade negotiations. Now it and other industries that require them.
- has become more important than ever Exports in 1979 totaled ~16.1 hillion,
for Japan to make international contri- a gain of 329'0 over the preceding year.
butions through the maintenance of a The percentage of exports has steadily
world economic or~:~r and to pursue increased year after year with those to `
economic cooperation with other Southeasi Asia and North America
countries. It is no exaggeration to say leading the way.
that the machine tool industry, which In the 1980s, the Japanese machin-
is indispensable to the growth of the ery industry will be required to make
Japanese machinery industry, has con- itself an even more creative and knowl-
- tributed to the Japanese economy edge-intensive industry, on the basis of
which has come to play such an the development of unique technology
important role throughout the world. and of the results of similar efforts
Machine tools, as indispensable made in the 1970s, to supply various
basic products for modern industries, sophisticated, value-added products.
constitute the basis of all branches of The scale of production of machine
the machinery industry, such as auto- tools is expected to increase to ~400
mobiles, precision machines and indus- billion (at an annual rate of about
trial equipment, all of which have 8.2%), while the value of exports will
supported the postwar Japanese econ- increase to about ~50 billion (at an
omy. Goods processed by cutting, annual rate of about 12.3%). However,
grinding and polishing determine the due to the shift of the Japanese
quality and performance of many economy to a period of slow growth,
products. By use, they are divided it is difficult for the industry to expect
broadly into steel tools which are domestic demand to grow as fast as it
made of high speed steel, cemented did in the past. Therefore, further
_ carbide tools made of cemented car- efforts are needed in the industry to
bide alloys and diamond tools which develop technology and promote inter�
use diamonds. These machine tools changes, including export expansion.
- each have their own technical fields of In terms of technological develop-
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ment, it is necessary to develop tech- Exports in 1979 totaled '~8.1 bil-
nologies to produce high-performance lion, an increase of 30�!0 over the
machine tools with new materials, preceding year. Probably as a result of
such as CBN, ceramics and cermet and efforts to develop new markets in
to positively promote efforts to econo- enticipation of stagnant domestic
mize such key raw materials as tan- demana, tne proportion ot expores
gusten and cobalt, as well as to cope grew at an ann�al rate of more than
with such pr~blems as increased 10% for the three consecutive years
demand from elecuonics and other from 1977. The percentage of exports
industries for materials difficult to cut is expected to increase further in the
1980s t}vou overseas publicity activ-
and grind and uncertair. supplies of ~
raw materials. The development of ities exchanges of information.
new technology is another require- Imports in 1979 grew 259'0 over the
m~~ preceding year to ~3 billion,~ ducts
tendency to import standard p.
- Tool Steel Tools from semi-developed countries in
Producaon of tool steel tools in recent years. The average import catio
1979 reached a record ~`66.7 billion, a remains relatively stable at 3-496.
gain of 1~~"o over the preceding year. ~m~ted ~.arbide Tools
However, it represents an increase of pr~uction of cemented carbide
15% over the previous record set in
- 1974 and shows that the industry tools in 1979 grew 269'o to a record
barely emerged from the impact of the ~63 billion, setting an all-time high for
- oil shock. As a result of diversified the second year in a row due to
demands and labor-saving efforts in vigorous activiry in such industries as
various industries during that period, automobiles, steel and electrical appli-
toul steel tools yield~d the position of ances that prospered in spite of the
the biggest market share holder to economic slowdown. Their production
cemented carbide tools. It is necessary is expected t~ continue smoothly in
' to orient chem toward overseas mar� spite of such problems as supplies of
kets hereafter by taking advantage of tungsun, cobalt and other resources,
Japanese products which are on a technical renovations, the advance of
world level in terms of quality and foreign enterprises from developed
technology. countnes and the industrialization of
developing countries.
Table 1. Machine Tool Production
(Unit: ~1 million)
Annual Production L970 1974 1975 1976 1977 1978 1979
Item
Production 94,162 132,149 91,441 109,295 133,739 146,583 182,357
i Machine tools Com azed to
~ year before 131.9 i 122.4 69.2 ~ 1195 122.4 109.6 124.4
Production 44.778 ~ 58,212 38,679 42,201 52,320 58,120 66,656 ~
' Special steel
toois ~
~ Compared to ~ 130.2 ~ 125.2 66.4 109.i I 124.0 111.1 114J
year before ~ i I
' Production ~ 37.796 I 54,760 i 36.297 ~ 44,718 I 56.632 62,971 79,067 ~
Cemented carbide ,
tools ~ Compared to i 138.8 122.4 66.3 ~ 123.2 I 126.6 111.2 125.6
year beFore ;
Production I1s88 19,17~ 16.465 22,376 i 24,787 25,492 36,634
~ Diamond tools Compared to
vear before 118.6 114.6 85.9 135.9 110.8 102.8 143.7
Source: !NITI statistics for speciat stal rools and diamond toois.
]apan Cemented Carbide Tool ytamifacturer's
Associarion statistics for cemenred carbide tools
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Table 2. Nlachine Toot Exports
Exports (Unit: ~1 million)
Mnual Productan
1967 1968 1969 1970 1971 197 2 1973 1914 1975 1976 19~7 1978 1979
_
' Expocts 1,878 2,426 2,630 3,836 3,251 3.246 3,696 5,192 S~ 16 7,332 10,266 12,221 16,066
= Machine I Compared
tools to yeu 136.0 129.2 108.4 145.? 84.7 99.8 113.9 140,5 106.2 I 132.9 140.0 119.0 131.5
~ before
Export rata 4.2 4.1 3.7 4.1 4.0 4.1 3.4 3.9 6.0 6.~ 7,7 g.3 g,g -
i ~ I
~ Exports i 1.270 1,766 1594 i 2,27g 1,719 ~ 1,803 1,189 I 2,612 2,959 i 3,807 5,500 6,295 8.163
~ Compazed
Speciai ~o Y~ar ; 13 LS 139.1 90.3 ! 142.9 75.5 104.9 104.8 ~ 138.3 I 113.3 I 128.7 1445 ~ 114.5 129J
steel tool~ before ~ I '
~ I ~
Export ntio ~ 6.0 6.3 4.6 ~ S.i 4.7 5.3 4.1 i 43 7.7 ~ 9.0 10.5 I 10.8 12.2
Exports 421 518 8121 1,221 1,266I 1.057 1,235 1,928 1,826I 2,516 3,834 5,015 6,270
, Cemented ~ Compazed ~ ~
carbide to year ~ 147.6 123.0 I56.8 ~ L50.4 103.7 ~ 83.5 116.8 156.1 94.7 I 141.0 148.8 I 130.8 125.0
~ tools before ~
I Export ratio ; ZS 2.3 I 3.0 3.2 3.8 3.2 I 2.8 3S ~ 5.0 5.8 6.8 ~ 8.0 7.9
I Exports ; 187 112 ~ 224 ~ 337 266 i 386 572 ~ 652 731 ~ 949 932 911 ~ 1,633
Compared i
Diamond ~~o Y~~ I i43.8 75.9 ~ 157.7 150.4 78.9 . 145.1 148.2 114.0 112.1 I 129.8 98.2 97.7 I 179.3 I
_ tools ' before i
I ~
Export ratio 2.8 1.7 2.3 2.9 2.3 3.0 3.4 3.4 4.4 4.2 3.8 3.6 4.5 ~
Sources: lapan Small Tool :~takers Association for special steel tools; M1TI statistics for cemented carbide tools and di~mond tools
Table 3. Exports by Destination
(Unit: ~F1 million)
1975 1976 1977 1978 1979 Jan.-May
1979
Special steel tools 840 803 1,052 ],270 1,946 1,309
Cemented suel carbide tools 382 475 521 1,226 815 487
N. Aroerica Diamond tools 11 ~ 65 4S 3~ 59 19
Machine tools 1,293 1,343 1,6t8 2,533 2,820 1,815
Special steel toois 716 1,017 1,384 1,427 1,836 911
E C Cemented steel carbide tools 233 210 278 336 402 3E5
Diamond tools 32 ! 14 18 33 ! 37 27
~ Machine tooLs 981 t,241 1,680 1,79G ~ 1,275 1,303
~ Special stal tools 2,311 2,515 3,422 5,910 7,245 ' 2,017 "
Southeast Asia Cemented steel carbide tools 534 j 1,161 1,799 2,035 3,296 j 1,049 I
I Diamond tools 275 405 444 409 ! 539 314
P
~ Machine tools ! 3,120 4,081 5,665 fs:354 i 11,080 I 3,380
I Special neel tools 57 12T I 200 2Z0 ' 211 ~ I50
'~liddle & i Cemented steel carbide tools 39 95 100 147 i 63 ~ 122
Near Past ~ Diamond tools 37 222 I 47 42 75 ' 27
i :~iachine tools 133 444 347 409 ' 349 ~ 299 ~
Special steel tools 106 ; 79 230 348 ~ 301 ~ 102
Cemented sted carbide tools ' 241 ' 186 ~ 201 309 ; 428 ; 487
I Oaania
Diamond ~ools 10 j 15 15 18 33 42
Machine rools ~ 360 ~ 280 446 675 762 i 631
, Special steel tools 186 , 586 3,087 974 ; 734 i 1,587
Cemented steel carbide tools i 248 297 167 ~ 111 118 77
Africa
Diamond tools 31 32 2$ 46 40 13
~tachine tools 465 915 3,278 1,131 892 1,677 ~
- Source ~11T1 ~tatiaics
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Table 4. Machine Saws, Edged Tools
(Unit: ~1 million) 96
- Annual 1975 1976 1977 1978 1979
Production
18,495 . 22,438 23,615 24.170 28.892 _
_ 121.3 109.1 102.4 119.3
~ Exports 1,570 1,908 2.261 2,170 2.484
_ 1215 125.9 96.0 1145
Exports in 1979 increased 25% to time, steady demand is expected to
~6.3 billion, thereby continuing the come from che frontier technology _
tendency of growing at an annual rate field, such as the spread of CBN tools
of around 3096 since 1976. The export whose hazdness ranks next to diamond
~ ratio came to exceed the import ratio and demand for automated factories.
in 1978 and 1979, indicating that Pcoducrion of diamond machine
Japanese producers had become able tools is a domestic demand-oriented
to compete with world enterprises of industry; exports in 1979 totaled ~1.6
- developed countries. billion and accounted for 4.Sqo of total
Imports in 1979 grew 24% to ~�5.4 production.
billion due in part tu those wluch were Ed d 7ools
intended to compensate for the 1978 Ed ed tools aze divided into various
_ decreases. The average import ratio has cate ones according to use, such as
been high compared with other ma- 8
- chine tools, at 6-8�~'a. Since the markets those for woodworking, bookbinding,
of the developed countries ie? Europe paper making and steel making. De-
and America have reached maturity, mand comes from a wide ranRe of
foreign producers are expected to try general industries, such as steel, auto-
to :upply Japanese demand with for- mobiles and ;hipbuilding. Th~Y ~e
eign-capital firms operating in Japan basic products wluch play an impo~-
leadin~ the way. tant role in meeting the requicements
of these industries. Such mdustries
" need high-Qrecision and high-gerform-
Diamond Tools
- Production of diamond tools grew ance edged tools in order to make
smoothly in 1979, totaling ~�36.6 bil- effective use of sophisdcated facilities
lion for a gain of 44% over the and technologies.
preceding year, or twice the 1975 Edged [ools have made rapid prog-
figure. The growth of diamond tools ress in terms of quality and manufac-
was particularly remarkable, although turing technology, but the industry's
the production of both tool steel tools productivity remains low. Since edged
and cemented carbide tools also regis- tools are produced to order, there are
tered all-time highs. several tha?sand products of different
Diamond tools can meet the more standards and sizes, and it is difficult
sophisticated demands in the field of to save labor and rationalize opera-
Tions `xcause of the need to produce a
machining, such as high-precision and Iarge number of items on a small scale.
� high-speed machining. At the same O
COPYRIGHT: 1981 The Nihon Kogyo Shimbun
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SCIENCE AND TECEIIdOLOGY -
INDUSTRIAL DIAMONDS ESSENTIAL FOR HTGH PRECISION TOOLS
Tokyo BUSINESS JA.PAN in English Jan 81 p 118
~Article by Haruo Suzuki, chaixman, Industrial Diamond Association of Japan~
~ Text ] T[~E quality and performance of a Japan has fortunately braked intlation,
1 product improves accordingly as with the yen remaining stable at a ~
the precision of their parts and mate- relatively high level in foreign ex-
rials increases. And to assure parts and change markets, and the country's
materials of higher precision, it is international balance of payments -
necessary to use tools with high preci- turning into the black.
sion mac:hining capabilities. [n this Japan's diamond tool industry has
respsct, diamond tools can be regarded grown steadily, and its output in the ~
as the most suitable for ehe following calendar year of 1980 is expected to
reasons. increase by mae than 10% over the
Tools made of diamond, the hard- previous year, nearing the $?00 mil-
est of all materials, achieve extra high lion level.
precision processing to a mi~ron level 'rne industry hopes to expand
- which is not possible with other rypes trade, both exports and imports, in
of machining tools. With the use of ~~e with governmental policy. To help
diamond tools, the total machining promote trade, the Industrial Diamond -
cost can be reduced remarkably be- Assa;iation of Ja an has com ~led an
cause their outstanding abrasion resist- P P
ance cuts down machining processes English-language pamphlet titled
and the need for frequent tool replace- "Tools of Japan" in cooperation with
- ment. the Japan External Trade Organization
Much progress has been macie in (JETRO) for distribution to interested
such technically vanguard industries as people via our branch offices overseas.
computers, electronics, space, aircraft In other efforts to promote trade,
and nuclear power, all of which call We orginized a trade conference on
for extreme recision. And more and ^~achine tools in Chicago during the
p ~0 Chicago International Machine
more metals and nonmetals, which are Tool Show. We are also making efforts
difficult to cut, have been developed. to estabGsh a Japanese Industrial
Diamond tools, together with tools Standard (J[S) for diamond tools
made of cubic boron nitride (CBN) which now conform to the ISO stand-
grains and their sintered producu, are ard, keeping in step with progress of
w~dely used to process hard-to-cut ~e Tokyo Round of GATT.
ferrous material. Diamond tools and Through these efforts we are trying -
CBN tools are indispensable in many to contribute to the open economy
industries whose products are used by system and to publicize our industry.
people throughout the world. Q
Despite the recent worldwide reces-
sion caused by high-priced crude oil,
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SCIENCE AND TECI~iOLOGY
MECHANIZED CUTTER INDUSTRY GIRDS ITSELF FOR HARD TIM~S AHFAD
Tokyo BUSINESS JAPAN in English Jan 81 pp 120, 121
(Article by Suzuo W~tanabe, chief director, Japan *~Yechanical Saw and Cutting
Tool Industry Association~
~Text~
T[he beginning of ]981, I would ~g related companies, our leading
A like to wish all of you a happy ~tomers, are also suffering from a `
new year. The business activities of g
eneral business slowdown.
our industry, along with the moves of pue to the ser,ond sharp rise in oil
the Japanese xonomy as a whole, prices in the fall of 1979, the prices of
turned gradually upward from the major raw materials including power
former stagnant condition from rates, steei materials and special steel
around spnng of 1979 and rapi~ly p~~ucu, wete also raised in the spring
improved, although with a slighNy af 1980. Though some price increases
overheating tnnd, from the spring of ~ceufully been transferr~_d to
1980. Since last summer, however, ~e prices of finished products izi our
business activities turned downward ~d~~y, they have not been able to
rapidly and have become more and fulty absorb the cost increases due
_ more stagnant each month. partly to the sluggishness of our
- This stagnancy within the industry ~tomer industries.
can be ascribed to the facts that plant As we will describe later, in the Fust
and equipment investments in indus- ~f of fiscal 1980, temporary demand -
tries in which our products are used for our products in anticipation of the
have been generally completed and coming rises in prices in general in- _
consumers in general are holding back creased our output considerably and -
from buying durable consumer goods, kept the industry's prafitability on a
a trend that has become more notice- fairly high kvel. In the present half, `
able since the oil crisis. however, the fact is that the industry's
Mechanical cutting tools for woai- profitability is rapidly worsening be-
working are among the items in our cause of lack of demand and curtailed
industry whose sales have become slug- production.
~sh recen~ly partly because housing The use of high-quality mechanical
construction starts have become stag- cutting tools enhances operati,ng per-
nant. This condiriou has been caused formance and the added value of
by continued increases in land prices products. Being reluctant to invest in
due to the delay in the development of ~~ovements, which assume
lands for housing and by sharp in- only a small portion of the total cost
creases in construction costs. Rises in of products, leads to larger losses, we
interest rates for housing loans and the believe.
extremely slow increase in wage levels We are exerting our best efforts to ~
must have also kept consumers fcom ~pp~y better products to meet the
- investing in housing. As a result, con- na~ of our customers. As for prod-
struction materials and fumiture mak- ~ts ~t are less profitable, makers are
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reluctant to undeRake research for to decline considerably because of the
their improvement. sluggishness in the demand for con-
Though we are continuing efforts struction materials and fumiture; the
t~ reduce costs through the simpl~ca- expected decrease in demand from the
don and rationalization of production field of iron and stcel producaon; and
processes and the adoption of more ~ancy of plywood related in-
economical materials, we also ask that d~~~, ~ well as the expected de-
our customers endeavor to understand ~~e output of those items
our situation so that we may obtain ~t showed an abnormal production
fair profts for products which demand ~~e first half of the fiscal
high production cosu. yqr,
According to production statistics ta 1981, bearing in mind the rapid-
released by our association, the output ty chan~ng conditions effecting poli-
- e~ band saws increased by 17.2% in tics and economies throughout the
the first half of fiscal 1980 com- world, Japanese ~~itic~ and entre-
pared with the first half of the pra preneurs are all urged to cope well
vioua fiscal year, circular saws by with such dif~icult problems as the
t5.696 (of which chip saws increased rooonstruction of the national finana
by 6.6�k), and mechanical cutting tools which oould evm face bankruptcy if
by Sqo. present treads continue, the security
Of inechanical cudery, the output of natural resources, the adjustment of
of inetal cutting tools increased by East�West trade, cooperation with da
17.9�I~, plywood cutting tools by veloping countries, and other challeng-
24.6~ and chipper knives by 11.99'0. ing inte~madonal problems.
On the other hand, the output of I beiieve that the Japanese people,
planer saws decreased by 5.3%, wood- who are generally dilligent and highly
working circular cutters by 6.8%, and educated and able to effectively adjust
bookbinding cutters by 8.490. quickly to any change, will be able to
As for production figures for the overcome these problems.
latter half of the cunent fiscal year, We look forward to your continued
we are not in a position yet to provide support for our industry again this
exact figures, but the output of mo- yeaz. ~
chanical cutters as a whole is expected
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SCIENCE AND TECNNOLOGY
MITI PREPARES ~'ROJECTION OF PIANT, EQUIPMENT INVESTMENT
Tokyo BU~INESS .?APAN in English Jan 81 pp 23, 24
~Text~ At a recent meeting of the subcom- follow-up survey it conducted last fall.
mittee on industrial funds of the pri~ate enterprises that were surveyed
1 n d u s trial Structure Deliberation ~~unted for 1,686 with a capital of
_ Council, the Ministry of International more than ~100 million. The indus- _
Trade and lndustry reported on pri- tries include 13 fields under the juris-
~ vate industries' plans for plant and diction of the ministry and some
equipment investments for fiscal 1980 others. Their total plant and equip-
" (April 1980 - March 1981). Accord- ~nt investments assume some 60% of
ing to the plans, the total amount of by major enterprises in Japan, an
such investments is expected to reach ~portant barometer of the trend of _
~10,269,200 million on a construc- priv~te plant and equipment invest-
tion basis through~ut all industries, up ~n~ �
28�~fi over the previous fiscal year. ps ~e growth rate of such invest-
Industry-wise, in addition to pr~ce~- ments for the current fiscal year, -
sing and assembly-type industries ~mely 28.09'0, is a nominal one, it is
which have been heavily investing so reduced to 22.0�,6 in real terms when
far, industries producing basic indus- ~e increase rate of prices in general is
trial materials are also planning to accounted. As compared with the sur-
_ invest in plants and equipment during vey conducted last February, the
this fiscal year after a lapse of several growth rate has been modified upward -
years. Investmentc in the power indus- by 5.1�Xo. lndustry-wise, investments in
try have been markedly iransferred such processing and assembly-type
from the first half to the latter half ~f ~dustries as the automobile, elec- -
the current fiscal year. The planned tronics and electric machinery con-
amount of such investments in the tinue to be brisk, while those in -
next fiscal year throughout all indus- materials producing industries such as
tries is expected to increase by only ce~nt, aluminum smelting and roll-
9.2%, indicating that such investments ~g~ petrochemical - except for paper
will level off. and pulp and steel - have recovered,
The growth rates of such invest- ~rpassing those in the previous fiscal
ments in the private industries shown year.
in this report are higher than in anY lnvestments in the non-manufactur-
survey announced by various financial ~g ~dustries are expected to increase
institutions, but the rate for fisca] by 2g.3% over the previous fiscal year.
1981 is expected to slow down con- A steady, increase is witnessed in the
siderably. MITI judges that it is neces- power industry as well as in wholesale,
sary to implement some measures to retail and leasing businesses. While in
promote such investments in the com- ~e manufacturing industries, invest-
ing fiscal year. ments increased by 13.596 in the Grst
The mm~stry conducted last Feb- }~f of the fiscal year over the previous
ruary a survey on such plans and has }~f-year term and are ~ expected to
prepared the recent report after a ~crease by 12.696 in ihe latter half in
1~2
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Plant and Equipment Investments in Major Industries in Fiscai 1980 and 1981
(On a consJUCtion basis; unit: ~1,000 miliions; percentage)
Results in P1ans Cor fiscal Ratio a ainst
lndustr No. oi Results in 1981 (On a basis of g
y enmpanies fiscal 1979 fiscal 1980 ,eplies feom componie:) previous fisnl year
(estimete) ~ Fiica11980 Fiac~11981 19A0/79 14R1~8()
_ - _ _ .
Power 35 (33) 2,128,1 3,660.8 3,660.8 4,193.6 134.2 114.7
~ Ciry eas 19 (19) 251.2 278.8 278.8 332.6 111.0 119.3
Nonferrous metals 2~ (17) 21.0 39.4 34.6 19.5 187.8 56.4
Ironsnd:teel 96 (66) 623.5 624.0 599.1 753.0 100.1 125.7
Oil refining 46 (43) 361.3 387.1 382.2 405.1 107.1 105.7
- Petrochemicals 77 (65) 131.4 174.5 157.9 186.9 132.8 118.4
Synthctic fibers 24 (22) 48.1 50.1 49.8 45.3 ]04.0 91.0
Automobiles 84 (61) 698.7 1,019.1 920.0 1,023.2 145.9 111.2
ElecttonicS & e;ectric machines 83 (57) 428.2 655.9 298.6 336.4 153.2 112.7
Paper & pu1P 56 (45) 192.9 172.8 167.6 122.2 89.6 72.9
_ Cement 23 (20) 129.9 180.3 147.1 80.7 138.8 54.9 ~
Aluminum srr~elting & rolling 27 (21) 48.8 75.3 71.1 55.1 154.5 77.5
Retail sales 60 (45) 379.8 ~51.2 365.4 345.8 118.8 94.6
~ Total of che above 654 (514) 6,042.9 7,769.3 7,134.2 7,904.6 128.6 110.8
Gther indusvies 1,032 (800) 1,978.1 2,499.9 1,950.9 2,019.0 126.4 103.5
Grand total 1.686 (1,314) 6,021.C 10,264.2 9,085.0 9,923.6 128.0 109.2
Man~facturing 1,471 3,616.9 4,619.0 3,658.0 3,795.4 127.7 103.0
Non-manufacturing 215 4,404.1 5,650.2 5,400.0 6,128.2 128.3 113.5
Note: The figures in parentheses are the numbers of enterprises which nplied to the survey for ~iscal 1981:
the non-manufacturing industries, expected to slow down to only 9.296
investments by the power industry in all industries over the current fiscal
increased by only 8.1% in the first half year. This would reAect the decl;ning
and are expected to increase by 28.796 vend of business activities, MITI
in the latter half. judges.
Throughout all industries also, Most of their investments are con-
investments in plants and equipment centrated on facilities to promote sav-
increased by only 10.5�,b in the first ings on energy consumption and labor
half and are expected to increase by as well as replacing and renewing
21.1�k in the latter half. Investments obsolete facilities. Throughout all
have thus been sharply transferred to industries, investments in facilities to
the second half of the fiscal year, as in save on energy consumption amount
the power industry. to such a high level as 7.1% of the
The recent survey has also collected total investments for plants and equip-
information on the industries' plans ment. MITI, however, anticipates that
for such investments in the next fiscal investments for this purpose are
year for reference purposes and has likely to show considerable inerease in
found that their rate of growth is the near future.
COPYRIGHT: 1981 The Nihon Kogyo Shimbun
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SCIENCE AND TECHNOLOGY
STAINLESS STEEL PRODUCER SETS GOALS FOR '80s
. Tokyo BUSINESS JAPAN in English Jan 81 pp 28-31
~Interview with Fujio Tsukamoto, president, Nippon Metal Industry Co., Ltd,, by
Shozo Hochi~ -
~Text~ -
T HE reception room for visitors calling on executives of
Nippon Metal Industry Co., Ltd. (NIKKINKO and its
trademark NTK) is ~n the 52nd floor of Shinjuku Mitsui
Building located in Japan's first skyscraper development,
and now a familiar landmark on Tokyo's skyline.
Mr. Fujio Tsukamoto, President of NTK, a quiet and
- scholarly type, was bom in the year 1918. He gcaduated
from the Metallur~cal Department, Engineering Division, -
Tokyo Imperial University, in December I941.
In March 1942, Mr. Tsukamoto was commissioned as a
technical officer in the Japanese Imperial Navy and became
~ a member of the Naval Technical Research Laboratory.
During the Pacific War, Mr. Tsukamoto devoted himself to
elevating the technical level of special steel and its related
products for the Imperial Nary.
After the end of the war in 1945, he returned to civilian
life and entered NTK in 1946. It was in February, 1962,
that he became a Doctor of En~neering as a result of his
thesis entitled "Strength and Various Deficiencies of Heat
Resistant Stainless Steel." He was appointed as director in
May 1963, and thereafter rose step by step - asswnin$ t}?e
post of managing director in 1969, senior managing director
in 1973, and in December 1975, the post of president.
It was also in that month that he was appointed to
several important posts; director of the Federation of
Economic Organizations which functions as a nucleus of
the Japanese business world, permanent d'uector of the
]apan Federation of Employers' Assoaations, and director
of the Japan Iron and Steel Federation. He continues to
hold these positions.
At about the same time, he was appointed Chairman of
the Japan Stainless Steel Association and became its advisor
in June 1976. At present, he holds the post of Vicel;hair-
man for a two-year term so as to be actively engaged in
betterment of the Japanese stainless steel industry. He is
also director and advisor of the Japan Institute of Metals
and councillor of the Iron and Steel Institute of Japan.
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~ NTK is ca~italized at ~6,500 million (authoriud capit:ll
, ~17,000 million), boasting a yearly tumover of ~90,OQp
million ard a yearly production of 190,000 tons. The
company has 1,700 employecs.
The Yokohama Works was constructed in 1932, the year
_ in which the company was founded. The Sagamihara Works
_ in Kanagawa Prefecture which went into operation in 1960
constitutes the main force of its production faciliGes. This
facility is the first in Japan to adopt the AOD refming
fumace and it is fully equipped with hot rolling mills and
_ Sendzimir cold rolling mills for the production of stain]ess
steel :.heets, coils, strips and plates.
Construction of the ICinuura Works located in the city of
_ Hekinan, Aichi Prefecture, was completed in 1972. This is a
stainless steel producing facility based on the AOD process.
~ NTK comple;ad a 100g6 continuous casting method for the
first tvme in the world, lt has cold rolling mills complete
with prucess control. This facility is capable of producing
high grad~. products with the most advanced equipment.
- In Nov-mber, when this interview took place, Mr.
'I'sukamoto was awarded the Blue Ribbon Medal, an award
presented by the Japanese govemment to persons who have
~endered distinguished services in indusUial development to
the country. We began the ir~terview by asking Mr.
Tsukamoto his feelings as a recipient of this medai.
(Interviewed by Shozo Hochi, Editor-in-Chief, Business
JAPAN)
o: I wish to express to you my heartiest congratulations reduction in costs and broadened the range of usage. I feel I
on your being awarded the Blue Ribbon Medal. We ali can say with confidence that the demand for stainless steel
know that the award is extremeiy difiicult to earn and that R,~7j increase mazkedly because this metal is rust free and
- only a handful in the steet industry are so honored each plesents a beautiful appearance.
yea�, With this in mind, I would like to ask how you feel puring the high growth period, we have seen a yearly -
about this award, growth rate of double digit numbers. 1t was actually ranging _
.A: Being an engineer, I have been constantly engaged in betwcen 10`Yo and 204b. However, the growth rate from r
~ research on and production of speciai steel - from my about 10 years ago has ranged between 4% and 5$'0.
_ school days through the nary and up to the present. I have Since 1970, Japanese stainless steel production has _
continued to work on stainless steel since entering NTK in ~'rPassed that of the United States to become the w~rld's
1946. highest. Japan now accounts for one-third of the world _
Japanese stainless steel manufacturing technique~ in production. The total volume of production in Japan is
those days were so primitive as to be almost beyond about 1.8 milliQn tons per. yeaz in t,erms of hot rolled
irnagi.nation. Howev~r, the 1960s throug,'~ the 1970s was an Products.
era of technolo~cal innovations during which great strides Japanese manufacturers differ from these of the United
_ were made. Since I have actually experienced this tran~i- States and Europe in that not only do we pursue volume,
:ion, it is like saying that my own history is the history ~f but also expend great efforts in aggressi~~ely developing the
stainless steel. market as well. It can be said that the Japanese stainless
I have eamestly worked hard as an executive as well as steel industry has follosved a path of growth similar to that
an engineer so I feel that 1 might have been recognized for of other industries in Japan in the sense that the industry
this. 1 consider that this award is not for me as an ~rther developed the technologies invented overseas.
- individual, but as a recognition of valuable centributions JaP~ is a nation without natural resources and on top
made by the Japanese stainless steel industry to our nation of that there is a pronounced worldwide maldistribution of
and society. Md in this sense. I feel that the award was ~W materius for stainless sfeel. The United States and
bestowed on me az an encouragement to brace myself and European manufacturers are also burdened by the same
work harder. handicap. I think this is the reason why we were able to
, compete with them on an equal footing.
tnrends~at are the future domestir. and overseas market Q: ~apan being a nation without resources, raw materials
A: Stainless steel in lhe past was used somewhat exten- must be transported a long way from overseas cauntries. In
sively in the chemical and paper ar~d pulp industries, but, ~~s respect, what hardships are in store for our stainless
since then, technological innovations have brought about steel indu~tryl
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A: The fact that the industry must depend on overseas In our case, each piece of equipment relating to the
supply sources fur raw materials is the weak point. There production of stainless stcel products was developed
are over l Of~ kinds of stainless steel products manufacturpt~' through the latest technolo~es developed in various coun-
- to meet various applicatiuns. lt is our desire to develop tries such ~s the United States, West Germany and
, various kinds of stainless steel to meet particulu requue- Switzerland. Therefore, it can be said that each of the
ments without using vita: metal resources, always in critical production processes is an accumulation of the world's
supply. This thinking holds much weight, because, for newest high�level technologies.
example, we have developed a grade of stainless steel ~e AOD (Argon-0xygen Decarburization) converter
without using nir.kel, a raw material of limitec' supply. We Was considered to be an advantageous refining process due
were t}ie first to put this product on the market, thus to its having the following features:
- establishing ourselves as the world's leading manufacturer (1~ It perm;ts the use of low cost raw materials;
of this grade of inetal. (2) Shortens production time;
In other words, we are constandy sUiving to develop the ~3~ Reduces unit consumption; and -
right product best suited for any specific application. (4~ Permits the extraction of contaminating gaseous
ingredients and non-metallic inclusions.
- Q: We feel that every industry in Japan should be resources Thus, AOD excells in productivity, operating efficiency,
saving conscious. What is your outlook as to future loW ~M~g ~Sts and high quality end products. We
availability of resources? installed a 55-ton capacity AOD converter in 1971 which at
- A: We always endeavor to have our sources dispersed and ~at tirne was classed as the world's largest fumace of its
diversified instead of depending on one overseas source. We type. A 75-ton capacity AOD converter was installed in the
- try to work towards internationalization by maintaining ~uura Works later.
friendly relations with many countries not only in exports, ~e~ ~stallations make up the main stream of our
but also in importation of raw materials with the aim of stairiless steel production at present.
complete diversification. 1 would like to add that in parallel to these installations,
a continuous slab casting process was adopted to replace
o: I think this cannot be accomplished by the efforts of ~e conventional ingot casting process. The continuous
the private sector alone. The government should appeal to ~sting machine installed in our Kinuura Works is called the
the developing countries with naturat resources through curved type. With this equipment, we were able to lead the
economic and technical assistance, world by establishing the NTK process with a continuous
A: From the standpoint of security, the United States is operation flow consisting of electric furnace, AOD con-
_ directing its efforts towards storage of resources. In the case verter and curved type casting equipment. We have suc-
of Japan, a consensus on this point is yet to emerge. We do ceeded in complete continuous casting of a11 grades.
have a group called the Rare Metals Stockpile Association, Furtheremore, all types of siainless steel to be developed
but after all, with only private sector funding, its scope of ~~e future will be premised on cantinuous casting aiming -
operations tends to be restricted. Without government at a significant improvement in production efficiency. @
support, the aims of this association will not be achieved. �~e ;~TK Process since then has been accepted by _
During the high growth period, there seemed to be no stainless steel manufacturers not only in Europe but
problem in securing rew materials, t}uoughout the worid, an impressive demonstration of its
A: Yea. Times change.' ~ surpassing technology.
These technical innovations and efforts expended on
Q: You have performed the role of a pioneer in importing development were risky, but I may say ihat the success of
foreign technologies. I would like to hear of some of your our company was brought about by the ability to look fat
experiences regarding the adoption of Sendzimir equipment ahead in the technological field.
in 1960 and the QOD refining furnace in 1971.
A: I took my first overseas trip in 1953. The more plants 1 Q: In 1962, you received your doctorate in engineering,
visited, the more 1 realized the necessity of importing the and you have many other achievements to your credit. I
latest of the technological innovations I was seeing. would think that these achievements have served as the _
Accordingly, with the aim of responding to the increas- foundation of your company's technology.
ing demand for stainless steel sheets, a four�foot wide cold A: I~9y thesis was concerned with characteristics of heat
rolling mill was installed in our Sagamihara Works in 1960, resistant s~ainless steel, not about production technology.
followed by a series of advanced equipment installations However, the results of technical research and experiments
such as a 50-ton capacity electric fumace, a continuous fed back to us from the floor were most effectively
casting machine, a Steckel hot rolling mill and an AO~ connected with the next technological advancc. Our tech-
converter. nological advances happened to coincide with the era of
- Again in 1972, a 70-ton ca}~acity electric furnace, a high growth, permitting investments mounting to several
75�ton capacity AOD converter, a continuous casting ~ores of billion yen, but we always strove to create plants
machine and a 20�H,i Sendzimir five-foot wide cold rolling ~d production facilities that could not be criticized by
mill were installed at our Kinuura Works. With the oncoming generations.
installation of this most up-to-date production equipment, Q: Your company has attained high rates of profit and the
the Kinuura Works has gau~ed fame as a model plant dividends to shareholders are high. At a time when it is
engaged in the manufacture of stainless steel.
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~ expected that economic conditions wili become even more Corporation, and technicai guiaance ?egarding hot rolling of
severe, what kind of management concept do yo~ have in stainless on the Steckel hot rolling mill to Ilssa�Viola, one -
mind7 Also, we would like to ask your opinion reqarding of the big three Italian stainless steel manufacturers. In
equipment investment and management strategy. addition, we have also extended tecynical assistance to
A: Long as well as short-term strategies aze being mapped developing countries.
_ out by our general staff. Alterations will be made according ln this regar~l, it is our sincere desire :o raise our level of
to changes in the times, but the most irnportant matter to technology by helping each other, thereby contributing to
keep in mind is the desire to make products that wil] meet ~e growth of the world's stainless steel industry.
t}~c requirements of customers. -
In this area, mass production and mass sales are p: Your ratio of sales is 85% domestic and 1596 overseas.
impraclical. Therefore, we are thinking of an equipment This dces not app~sar to be a company dependent on "
layout plan that would be compatible with the diversifying exports. May we have your vie~,vs on exports?
market demands. A: In the past, we were exporting in the range between 35
To attain sound process control, we must bear in mind ~d 40%. Like some other industr:es, we too have
tl~c necel tc~ iin{~rove an~l pcr(cct equi~ment with full experienczd trade friction, To overcome this situation, we _
utilization c,f cumputers as well as making equipment }~ve worked hard at expanding our domestic market
~~ulluti~m-frec. 7'itis ducs not mean adding on another line through a vigorous program of demand cultivation. ~
uf eyuipment similar to an existing installation simply to As for myself, 1 would like to reduce as much as possible
stiue~t for increased volume, but I would like very much to our degree of dependence on exports. Our present IS% is
increase uur capabilities with equipment that would re- the result of our efforts. However, if we were to export, we
spond to the diversifcation which 1 mentioned earlier. should export only products that are not available in that
particular country. This kind of thinking is based on our
dedication to contribut'e 2~o~coexistence and coprosperity in
Your Kinuura Works is situated on a large tract of land, cooperation with rrfariufacturers in other countries.
providing much room for expansion. p� A few words on future market development, please.
A: In those days, the area of the site was considered to be A: Some 40�Io of the bathtubs in Japan are made of
excessive, but we secured it after tal:ing into consideration stainless steel. Various applications are numerous. To ~axne
the future growth of stainless steel demand. a few, there are swimming pools, roofing, and other
_ building materials, and water storage tanks. These markets
_ 0: As to the needs of the coming generations, work related did not exist ten years ago. Stainless steel products are
to development of new energies and marine resources is widely used for varied sanitary purposes also. We feel that
likely to appear from many sources. In this respect, what these areas will not only increase in importance domestical-
kind of concept do you have with regard to technological ly, but overseas as well. Therefore, it is our desire to
innovations that would meet these needs? develop a grade of inetal that will meet the demands in this
A: Stainless steel is certainly useful in this work. To ~ve market. -
you some indication of its uses, stainless steel is used in
LNC; carriers, storage tanks and membranes. Q: Since you are actively engaged in a variety of business
I may add that we are constructing a fabrication plant so activities, we would appreciate your views on the overall
~s to be fully prepared to make deliveries to the Tokyo Gas .lapanese industrial economy.
Company on t}~e basis of our successful induction of A: 1 would like to contribute to society through the
- technology from overseas to produce stainless steel that medium of stainless steel. Japan as a whole is burdened
will n~t be effected by temperature changes from normal with many critical problems - energy and pollution among '
to 162 dcgrees below zero. others. I am determined to do our best in eliminating
As a stainless steel specialist, we are interested in various pollutions, and improving energy and other impor-
~arrying ou? the necessary equipment investment in this tant problems by means of stainless steel products.
area. We have great confidence in the future of this
product. +��v~ss*+ss
0: We understand that you are extending technical assist- The interview was carried out in a very relaxed and
ance to overseas manufacturers to a considerable degree. agreeable atmosphere. Mr. Tsukamoto has the reputation of
A: We are well acquainted with many stainless steel being a well-rounded man of many interests. In his overseas
manufacturers abroad with whom we maintain close rela- trips, he visits art galleries and attends concerts. He even
tions. We have bee~ on several occasions requested to carries along his own painting supplies should he be inspired
extend �echnical assistance. Our technical assistance ,in- to reproduce the local scenery on canvas, thou~ he rarely _
cludes improvement in surface defects caused by continu- finds time now for this relaxing hobby. Mr. Tsukamoto is
- ous casting to Stora Kopparbergs of Sweden, guidance on also a good golfer with a handicap of 17. ~
hc>w to operate conlinuous casting system to British Steel
COPYRIGHT: 1981 The Nihon Kogyo Shimbun
CSO: 4120
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_ SCIENCE A,DID TECHNOLOGY
JAPAN~S CEMENTED CA.RBIDE TOOLS CONTRIBUTE TO WORLDWIDE INDUSTRIAL DEVELOPMENT
Tokyo BUSINESS JAPAN in English Jan 81 pp 115, 116
~Article by Shiro Ueda, president, Japan Cemented Carbide Tool Manufacturers'
Association~
- ~Text~ HE modern scientific control successfully achieved in 1927-28. The
T method for machinery faciories cemented carbide developed in Japan
started with the measurement of the was used in single-pomt tools ior
standard work volume performed by turning and in wire drawing dies. Like
tools. Tools are vital factor in deter- its Western and U.S. counterparts, the
mining whether a specific manufactur- Japanese cemented carbide tool manu-
ing method is possible or not, as well facturing industry has a history and
as determining the manufacturing time tradition of over half a century.
and the cost of manufactur~. The quality of tool materials,
At the start of the current century, including WC-based cemented carbide,
demand for good quality, hard- has ma.de astonishing progress in
strength tools began to increase. Start- Japan. Thanks to positive investment
ing with steel, a variety of hard-tool in research and development by
materials were developed by many cemented carbide tool manufacturers,
countries. For instance, high-speed coapled with the general progress of
tool steel was developed in 1900, ihe industry, a great variety of new
- Stelite in 1907, tungsten carbide (WC) tool materials, have been developed
- in 1914, and subsequently molyb- and are now being put to practical use.
denum carbide (MoC) and cast hard- Among them are coated tips; titanium
metal. From among these hard�tool carbide (TiC), and/or titanium nitride
materials, WC emerged to play the (TiN) based cermet; aluminum oxide
principal role. (A1~03) based ceramics; and ultra-high
The development of these hard pressure composite materials (CBN
metals subsequently resulted in the use compact and diamond compact).
of cemented carbide produced by the The progress made by cemented
powder matallurgy method. It was in carbide, together with the improve-
1926 that cemented carbide made , ment of tooling technology, has
primarily of WC and metalli: cobalt expanded greatly the scope of its
used as binder was marketed for the application. Spurred by the sophistica-
first time by Krupp of Germany under tion of software technology, the diver-
the trade name of Widia." ln the Sification of cemented carbide tools
U.S., General Electric began manufac- progressed rapidly. In Japan today,
turing cemented carbide in 1928, numerous cemented carbide tools are
marketing it under the trade name of
"Carboloy." In Japan, research on employed in almost all industries. For
cemented carbide started at about the instance, the small cemented carbide
same time as in the U.S., and trial tools used today include dental burrs
manufacture of cemented c3rbide was and micron drills while the giant tools
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Table 1. Production in Value by Year
(Unit: ~1 million)
Y~r 1970 1974 1975 1976 1977 1978 1979
Item -
Cemented pr~uction 37,796 54,760 36,297 44,718 56,632 62,971 79,067
carbide
tips & Compared with 138.8 122.4 66.3 123.2 126.6 111.2 125.6
tools preceding year
include crank pin cutters which are (3) Manufacture of high-efficiency
three meters in diameter. Cemented twist drills for steel and throw-away
carbide tools produced and marketed drills for large holes, by means of
in Japan are at the world's top level. unique cutting-edge shape designs;
Standardization of cemented carbide (4) Use of cemented carbide in _
tools is now in progress, and the deep g~ooving cutters and hobbing
Japanese Industrial Standard (JIS) has cutters.
been set for 13 items, and the There are many others on the long
Cemented Carbide Tool Manufac- list of innovations.
- turers' Association Standard (CIS) for As Table 1 shows, Japan's
19 items. cemented carbide tool production in
The latest events in the field of 1979 exceeded ~�79,000 m~llion, while
_ technical development are as follows: the output of cemented carbide
(1) The structure of tools has been reached the all�time high of 1,455
improved to make quick change of tons. The production of cemented
tools possible in order to reduce in- carbide tools further expanded . after
active time; the start of 1980, renewing records.
(2) Manufacture of various high- Japan's cemented carbide tool produc-
efficiency end mills for engraving, tion is believed to rank second amotig
_ including ball-end milis, by devising mechanized Western industrial nations,
unique cutting edge geometry and next to the U.S. and on a par with
structure; Sweden. We can say that Japan is
COPYRIGHT: 1981 The Nihon K,ogyo Shimbun ~
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