JPRS ID: 10303 JAPAN REPORT

• Document Type: CREST
• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000500030012-0
• Release Decision: RIF
• Original Classification: U
• Document Page Count: 94
• Document Creation Date: November 1, 2016
• Sequence Number: 12
• Content Type: REPORTS

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JPRS L/10303
4 February 1982
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_ enclosed in parenthe ses. Wo:ds or names preceded by a ques-
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, JPZS L/10303
4 February 1982
1
~
; JAPAN REPORT
(FOUO 8/82)
CONTENTS
POLITICAL AND 50CIOLOGICAL
Suzuki's Reelection Possibilities Discussed
(Editorial, Raisuke Honda; THE DAI~Y ;OMIURI, 8 Jan 82).... 1
General Election Rumors Bec ane Rife
(Keiichiro Kuboniwa; THE JAPAN ECONOMIC JOURN~IL,
12 Jan 82) 3
Japan, U.S. Agree To Begin Joint Study on Defense Cooperation
(Editorial; MAINICHI DAILY NEWS, 12 Jan 82) 5
Comment on Ambassador Mansfield's Remarks on Bilateral Relations
(Susumu Ohara; THE JAPAN ECONOMIC ~JOURNAL, 12 Jan 82)...... 8
Planning for Emergencies
(Editorial; THE DAILY YOMIURI, 10 Jan 82) 9
Suzuki Bares Instructions for Joint Security Studies
, (THE DAIL~i YOMIURI, 13 Jan 82) 11
Suzuki Issues New Defense Concept
, (Yuji Koi.do; THE JAPAN ECONOMYC JOURNAL, 19 Jan 62)........ 13
Soviet-Japanese Relations
(Editorial; MAINICHI DAILY NEWS, 9 Jan 82) 15
Editorial Outlines Important Aims of Political Circles in 1982
(Editorial; TH~ JAPAN ECONOMIC JOURNAL, 12 Jan 82)......... 17
Complicated Ties Between Nakasone, Watanabe
(Takehiko Takahashi; MAINICHI DAILY NEWS, 13 Jan 82)....... 19
Editorial on Administrative Reform
(MAI~IICHI DAILY NEWS, 11 Jan ffi) 21
- a- ~III - ASIA - 111 FOUO]
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Fur~~iyn Minl~L~r W~arn~ Staff 'ro F'ropare PoC 'ltuugh Weather'
(Minoru Hirano; THE DAILY YOMIURI, 10 Jan 82) 23
MILITARY
Security PaneZ Approves Joint Defense Study
(MAINICHI DAiLY N~WS, 9 Jan 82)........... 25
Effects of Increased Defense Spending on Econany Viewed
(Editorial; MAINICHI DAILY NEF)S, 10 Jan 82) 27
ECONOMIC
U.S.-Japan Perception Gaps, Trade Imbalance Problems Disaussed
(Aritoshi Soejima; JAPAN ECO~IOMIC JOURNAL, 12, 19 Jan 82).. 29
~'ew U.S. Makers Take Part in N~'T Procurement Biadings
(JAPAN ECONOMI:C JOURNAL, 12 Jan 82) 34
MITI Studies Ways To Help Ailing U.S. Auto Pro~ucer
(JAPAN ECONOMIC JOURNAL, 19 Jan 82) 36
Domestic Auto Sales Last Year Shawed Dip, Excluding Midgets
(JAPAN ECONOMIC JOURNAL, 19 Jan 82) 3 8
Fujitsu To Carry Out Large-Scale Capital Increase
(JAPAN ECONOMIC JOURNAL, 19 Jan 82) 39
Toyota, Nissan Turn Efforts To Boosting Small Truck Exports
~ (JAPAN ECONOMIC JOURNAL, 19 Jan 82) 40
_ Briefs
Auto Parts Mission to Spain 41
Nontariff Barrier Reduction 41
Toyota Auto Part Imports 41
Iraqi Vehicle Purchase 42
SCIENCE AND TECHNOLOGY
Information Processing, Hitachi Te~minal System Discussed
(Hiroyuki Osako; HITACHI HYORON, Aug 91) 43
NEC's Vice President Discusses How To Lessen Semiconductor Trade
Frictions
(JAPAN ECONOMIC JOURNAL, 8 Dec 81? 53
Organization of Daikyo Oil Company Viewed
(NIHON KEIZAI, 21 Dec 56
Coal Imports From Soviet Union Delayed
(YOMIURI SHIMBUN. 25 Dec 81) 61
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~ Finance Minister, MI:I Discuss Relief of Aluminum Industry
(ASAHI SHIMBUN, 25 Dec 81) 63
Toyota President Discusses Company's Plans
(NIHON KEIZAI, 28 Dec 81) 64
~ MITI To Purchase Additional 10,000 Tons of Aluminum Ingots
~
(NIHON KEIZAI, 30 Dec 81) 69
~ MITI To Begin Efforts for Reorganization of Aluminum Industr~
(YOMIURI SHIMBUN, 30 Dec 81) 70
Japan-U.S. Atomic Study To Begin in April
~
- (JAPAN ECONOMIC JOURNAL, 12 Jan 82) 72
Japan, U.S. Steel Firms Move To Boost Canplementary Product Ties "
(JAPAN ECONOMIC JOURNAL, 12 Jan 82) 73
EPDC, TVA of U.S. Agree on Technical Exchanges
(JAPAN ECONOMIC JOURNAL, 12 Jan 82) 74
= Five Power Utilities To Help NffiI Develop ~APWR Type ReacMor
(JAPAN EC~NOMIC JAURNAL, 19 Jan 82) 75
NTT's Data Division May Be Made Private Company
(Ichiro Kifune; JAPAN ECONOMIC JOURNAL, 19 Jan 82)......... 76
Gene Recanbination Test Guideline To Be Altered
(JAPAN ECaNOMIC JOURNAL, 19 Jan 82) 78
- In~]onesia Brown Coal May Be Utilized for Methanol
(JAPAN ECONOMIC JOURNAL, 12 Jan 82) 80
Hitachi, General Motors To Develop Car Electronic Control System
(JAPAN ECONOMIC JOURNAL, 12 Jan 82) ' 81
- Race Begins To Develop Servo Valve for Robot
(JAPAN ECONOMIC JOURNAL, 12 Jan 82) g~
Toshiba Freezes Original Plan To Mass Produce 64K Ram Chips
(JAPAN ECONOMIC JOURNAL, 12 Jan 8~2) 83
Nagaoka University Successful in Ion Beam Thermon~clear Fusions
(�JAPAN ECC~NOMIC JOURNAL, 12 Jan 82) 84
F~~,jitsu Fanuc Cooperates With Tatung on Robot Marketing
(JI~AN ECONOMIC JOURNAL, 19 Jan 82) 85
Yamaha To Enter Into Aircraft Er~gine Field
(JAPAN ECONOMIC JOURNAL, 19 Jan 82) 86
Ministri~s Differ as How To Revise Data Canmuni~ations Laws
(JAPAN ECONOMIC JOURNAL, 19 Jan 82) 87
Toray To Commercialize 'Strongest' Fine Ceramic
(JAPAN ECONOMIC JOURNAL, 19 Jan 82) 89
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POLITICAL AND ~OCIOLOGICAL
SUZUKI'S REELECTION POSSIBILITI~S DISCi~SSED
Tokyo THE DAILY YOMIURI in English 8 Jan 82 p 3
[Editorial by Raisuke Honda: "Suzuki's Hard Year"]
[Text~
It seems likely that Prime MSnister Su- strongly trusted by the Dremier. ,'~lso,
zuki w111 be reelected president ii the I.lb- there aeema to be growing distrust oi the
eral-Democratic Party tLDP) next Novem- prime ministcr hSmaeL'.
- ber but this does not mean the year will In the current Diet sassion which will
be without political turbulence or crftical ~ resumed in late January, the oppasitian
tests for him. � parties are expected to demand a large-
3uzuki displayed 8rmness in hiu New scale income tax reduction as their way to
Year's press conierence and in a.n inter- condemn the government's economlc poli-
view over televlsion. He'll need this be- cies.
- cause he must overcome some obstacles in How well will the premler survive this
the way oi his reelection. onsiaught?
The Erst obstacle will be to achieve F'o~ Auother dimcult polltical problem will
gress in overcomirg deflcit-ridden state bc the expected series oi verdicts in the
Snances and hanciling the normal session Lockheed payo8 trfBLs thia year.
ai the Diet. The ruling on former All Nippon Air-
Ttie premier said earlq last year thAt he wa~s (ANA) chairman Toku~i Wakasa is
would stake his political life on admin- scheduled for January 28, and verdicts on
latrative and rinancfal reiorm, promising former tranaport miniater Tomtbaburo
that � deflcit-covering government bonds Hashimoto and Takayuki Sato, former
would be discontinued bq flscal 1984 to parliamentarq tranaport vlce-minister, will
establish sound state ~nances. follow ahortly therealter.
But his promiaes seem less vaJid now. ~e prosecution ia expected to make its
There mas a remarkable drop !n tax re- ~mand for the sentencing oi lormer
venue for Sscal i981. 'I'he government has p~~e minister Kakuei Tanaka before the
decided to issue government bonds worth summer vacatlon, and the court's verdict
'~375 billion next flscal year, but even thi~ ~ expected in the autumn.
ls eapected to leuve the government in the Needlesa to say Tanaka's verdict wlll
red by i~800 billion. have an impact on Suzuki's political
Under these circumstances, the F'lnance future.
Ministry is con~idering borrowing funds Judging from the way the trial has gone,
= which were to be used tor redeeming gov- ~~re is little chance that Tanaka will be '
ernment bonds to tide the government acquitted. `
over the revenue shortiall. And if, as eacpected, he is lound gullty,
~ Because of these developments, pessimis- thia will ~olt the ruling LDP. There is a
= tlc voices are being heard withln the gov- possibility that form~r premier N'.ild may
~ ernment and the LDP tYiat there will be again raise the demand. to cleanse the
no choic~ but to defer flnnnciu! rehabllita- p~rty of Tanaka's influence.
tion. ThW could undermiue and perhaps cause
At the same tinie, critlcis:n is beln; the collapae ot the three pillars of the Su-
leveled at the Snance minister, who !s y~~ e~~l~trations-tT,e 8uzukl, Tanaka
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~'t)!~t t)#~'F''_('!~"._ t.!`+f.: ()Nd:Y
and Fuknda factions. And this could uam-
aoe Suzuki's campaign for reelection as
I,DP president.
Suzulcf cannot aSord to take his reelec-
tlon fcr granted. He should remember also
that neither Tanaka nar Miki nor F~kuda
succeeded in wlnnii~~ reelection as LDP
presideat.
COPYRIGHT: THE DAILY YOMIURI 1982
CSO: 4120/128
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POLITICAL AND SOCIOLOGICAL
- GENERAL ELECTION RUMORS BECOr~ RIFE
Tokyo THE JAPAN ECONOMIC JOURNAL in English 12 Jan 82 p 10
[Article by Keiichiro Kuboniwa]
~TextJ
'I'here hav~~ been rumors circulating tn h~~ the hastion of the Tanaka faction, has
amun~; rulin~; and npposition parties recently mapped out secretly "a list of ~ossible candi-
that a dissolulion ot the House of Repre- dates for the n~xt general election." One
sentatives and an ensuing general election, meml~er of the Suzuki faction, who just ha~
pcned to drop in and see the list, was com-
long considered to be scheduled in 1983, pletely astounded, saying "at the time when
might be held this year. Although there are
many who predicted the general election all iDP members are in a flamboyant mood
would be held simullaneously with the Upper over the reshuft7ing of the cabinet and the
House election slated in 1983 at the earliest, 1.1)P leadership, the Tanaka faction is
some ohservers have started saying, since steadily making preparations for the general
late last year, that "the general election will election."
be held in 1982 betore lhe court ruling on The Tanaka iaction took hold of the post of
Kakuei Tanaka" or simultaneously wilh na- LDP secrelary general in the last personnel
tionwide local elections in April, 1983," reshuffle, and furthermore, managed to re-
thereby casting ripples over election-con- tain Accounting Bureau Chief Yoshiro
sci~~us I)ir.tmen. Hayashi, their own man, in the same post
c~ne run~or, circulating among the ruling vehemently rejeeting the demand by the
I,il~~,r;~l I~~~ma~ratic Part,y and the (?pposition tiuzuki faction that the post of accounting
N~�~e Lib~~r.ii ('lub and the Kumeilo, had it: bureau chief must be in the hands of the fac- .
��t'rim~� Minisler Suzuki mi~ht dissolve the tion which holds lhe LDP presidency. This
I.ow~~~r llause in an aU~~mpt t~, tsrcak the retention of their own man is considered as
d~~~?dl~x�k if administrativ~� rcform da+s not anothcr move to prepare for the coming gen-
~;o ~madhly." 7'hc other rumor had it: "If cralelectionamongLDPmembers.
'I'anak~~ is tiurc In bc judged kuilty in the firsl Foreign Minister Yoshio SakUrauchi, who
I.~x�khc~~ci payuff trial this fall, the general took command of managing the simultane- ~
~~I~~cti~?ri is very likely to take place txfore ous elections two years ago as LDP secre-
thal rulin~." F:ven ~mc memtx~r ~~f the tary general, and led the party into an over-
- K~~n~~~tr~ f,~c~iinn said at its plcnary m~~~~lin~; whelming victory, said: "We did not win be-
I.~tc~~ast y~~ar ~~I have hcarvl a rwnor lh~it the cause of simultaneous elections. We won be-
~;~~n~~ral ~~Icclion is likely in 1!~u'l," c~usin~;an cause Prime Minister Masayoshi Ohira sud-
upruar .~mong Iacti~m memhcrs prs~scnt at denly died. It is dangerous to think that we
ih~~ mcetinK. ~ can win anotfier simultaneous election again
'I'h~~sc~ rumors arc amplifird e~ven further next time. When we lase simultaneous elec-
i~~ i1~~~ lau�t ihat thc�'1'anaka faction, the must tions, lhal will be a complete defeat. The
pow~~rful am+m~ the I,DP, is making speedly risks involved are too high." In saying this,
pr~~p~irali~ms for th~ general eleclion. In ~kurauchi voiced a stcong opposition to the
_ N~w~~mb~~r last ycar, the LI)F''s National Or- double eleclions and conveyed his opinion to
~;:~n~r..~tiun ('ommiU~~~, whichwasconsidered ~e present LDP leadership.
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F()R ()I~NI('IAI. l1tiH: ()Nl.l'
13ut sumc o( Japan's busincss cireles have
- repc?rtediy toid the prime minister that "ltiey
cannol stand lhe idea of having three elec-
tions in 198:i." That is, if lhe general election
is held sometime in 1983 aside irom nation-
- w~ide lncal slections in April and the Upper
}louse Eleclion in June, the business circles
could not affotd to pump out t~he political
funds needed for those election8. Probably,
~~�ilh this rnnsideralion in mind, Fukuda fao
tion membcrs declared last ycar that it is na-
tural to think the elections wiU be double-
Ir,irml~~d " Su�r.uki f;tction memhcrs also
said "Primc Minister Suzuki, who will be
able to win the reelection for the I.DP presi-
dency this fall, will nol complitate the politi-
cal scene by dissolving the Lower l[ouse,"
thereby denying lhe early dissolution of the
Lower }iouse.
Despite all those arguments, the only time
possibly considered for the general election
in am evcnt is either at the same time as na-
tionwide I~xal eleclions or the Upper House
~leclion, or one year earlier or later than
tli,is
COPYRIGHT: 1982, The Nihon Keizai Shimbun, Inc.
CSO: 4120/128 .
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POLITICAL AND SOCIOLOGICAL
~ JAPAN, U.S. AGREE TO BEGIN JOINT STUDY ON DEFENSE COUPERATION
Tokyo MAINICHI DAILY NEWS in English 12 Jan 82 p 2
[Editorial: "Joint Defense Study"]
[Text]
Japan and the United States agreed during the
18th Japan-U.S. Security Consultative Committee
meeting last week in Tokyo to begin a joint study on
defense cooperation in cases of emergency in the Far
East outside of Japan.
The joint study "on emergency" means bilateral
- consultations on the possible use of Japanese' Self-
Defense Force bases by the American forces or
Japanese logistics support to the U.S. in military
conflicts on the Korean Peninsula. The study is also
based on the gnideline of the U.S.-Japan cooperation
~ adopted at a previous committee meeting.
, The guideline stipulates, among others, the roles
~ to be played by the United States Forces and the
Japanese Self-Defense Forces to prevent possible
aggression . against Japan and to cope with the
possible emergency cases in the F'ar East which may
seriously affect the security of Japan.
The agreement on the joint study on the
emergency cases in the Far East is regarded by some
as the coming into the open ot the "most dangerous
point" in the U.S.-Japan Security Treaty.
As a prerequisite, the guidellne said that the
committee meeting would not discuss three problems
- the prior consultation system, Japan's con-
stitutional restrictioa and the th~ee ntinnuclear
principles. The Japanese gavernment has said that
Japan's action would be limited within the present
regulation and the interpretation oi laws.
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ruK ~~r~~~rA~. t�h ~1tv~Y
Lt. Gen. Charles Donnelly. commander, U.S.
Forces in Japan, earlier ealled for the joint use of
- tranaportation systems, airport and harbor facilities
and also ~PiI-Defease Force facilities and ec~uipment
in cas~s of emergency.
- These poin:s may contradict Japan's basic .
defense policy and go beyond the scope of "individual
self-defense right." Apparently aware oi this,' the
governma~nt has been reluctant to begin the joint
study on the emergency cases. Why then did the
government reach the decision? The~ biggest reason
for this was the government's efforts to improve U.S.-
Japan~se relations which have experienced rnugh
sailing due to the so-called trade and defense fric-
tions. We wonder if the emphasis on the defense ef-
forts would help the two countries to erase such
frictions.
The agreement also contradicts Japan's basic '
pr.inciple not to become a bIg military power and its
pledge to create peacetul relations amoag Asian
nations. Since the end of World War II, Japan fias
followed makeshift ways in its relations ~'th the
United Sta~es. The Japanese governmeat must now
establish comprehensive relations with the U.S.
based on ideals and practices.
- Decon trol Of Inform a tion
Kanagawa and Saitama~refectures are expected
to b~come the first prefectures to imple~nent the new
ord~nances for the decontrol of information in the
hands of prefectural governments in September and
December, r~specti.vely. Abundant information and
' materials should not be monopoiized by the central or
local governments because they are gathered for the
people by the people's tax money.
The speed oi lnformation decontro~ has been slow
in the central government which has to deal with
diplomatic, defense, and public peace and order. On
the contrary, local governments dave Intormation
closely related with the public life and some ot them
- have actively studied the possible. decor~trol ot in-
formation. ~
According to the Kanagawa outline, information
compiled in the form of "official documents" would
be avallable to the public in principle. ONy seven
items rel~ted with resider~ts' privacy or police in-
vestigation of crimes would remain controUed. The
outline said that business firms must also open their
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informatipn which wffl be "necessary to protect local
residents fron disasters, pollut~on and dangers from
coirimodities."
Some qaestions remain. Should the process of
decision-making leading to the decontrol be kept
secret? ~Iow can prefectural residents acquire an
enormous amount of information? We hope the
prefectural authorit~es will fully esamine the various
cases in the new ordinance ahich will ~become the
model for other prefectures.
COPYRIGHT: MAINICHI DAILY NEWS 1982
CSO: 4120/128
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FOD~ 0l~~I('!AL UtiH; ON1,Y
_ POL:CTICaL AND SOCIOLOGICAL

~ ~OrIlKENT ~N ?,1~ASSADOR MANSFIELD' S REN',ARKS ON BILATERAL RELATIONS
~ Tokyo TEIE JAPAN ECONOMIC JOURNAL in English 12 Jan 82 p 10
[Article by Susumu Ohara: "Another ~ercepti~n Gap?"]
[Text ]
The address by U.S. Ambas- same. especially a great friend like
- sador Mike Mansfield at the The press luncheon was held Am~assador Mansfield.
~oreign Correspondents' Club ac the request of the ambas- The truth might lie, in my
oi Japan last week remarkably sador himself because he
- differed in approach from his Wanted to give his assessment ~u~~ent, in the simple fact
previous public statements on of the current trade frictio~ ~~esa club'wnewsmen present
the U.S.-Japan bilateral rela- before he leaves for hofii for ~
~ tionship, consulfakions and home le~ve. '~'~a $roup at the press luo-
� cheon. Thero were~many Japa-
True, he first expressed high He was uneasy and concern
= re ard for Ja n's s ial about what might be ehead ~e Journalists . amobg the
g Pa P~ oWer-crowded suchenc~, but
effort in increasing its defense of the bilateral economie.rela- mast of them �wece~ pr~sent as
budget tor fiscal 1982. True, he ~onship in the months to come. individuals, nat reaponsi6le fur
repeated his "song" that. the 'The message was clear, but it coverage ot 'ttie apeech, They
relationship between fhe linited ~ doubtful whether it r~lly le[t it up to the]Cas~iForeign
StaQes and Japan is "the most reached the audience he aimed Ministry) press elab members,
important bilateral relationship at. With only one.exception, all most .of whom~ wrote ~ their
in the world - bar none." t1?e majop vernatcular daily articles based on the prepared
But the address was clearly papea's in Tokyo carried ~ text without showing up at the
different from his previnus spe~~ch only in brief stories FCCJ.
ones in that it urged only Japan the next day. The ambas-
to take actions to sulve the sador knew that his remarks They failed to take note of the
current trade frictions, "We were "hard worcls for my Japa- impot~ance of . Qle ~mbea-
' can point to the problems as we nese Eriends and cQlleaguea to eador's speech which was full
_ see them, but only Japan can hear," But it seems that they � of frlendly advice and warn-
take the actions to solve them," were not so hard at Ieast to hie ings. They saw nothing nevV~in
hr slresscd. 1 n contrast, he friends in the Japanese media. the ~ddress in terms- of
never mentioned in the speech Or was this becauae the "speeific" propoeals. Th~s in
the need for the U.S. exporters Japanese press did not like to itselE may �illustrate another
to make greater efforts to hear any hard words from a example of "perception gap" uf
_ penetrate into the Japanese foreign source? Probably not. the av~lousness~ of the cnrrenf
market, although he said. in his The Jnpanese Are rather overly economic situation between the
a~nswer to a question later that sensitive to any critical words Japenese and Americans.
his view on this remained the of them by foreign people, .
COPYRIGHT: 19t32, The Nihon Keizai Shimbun, Inc.
CSO: 4120/128
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_ POLITICAL AND SOClOLOGICAL
PLANNING FOR EMERGENCIES
Tokyo THE DAILY YOMIURI in English 10 Jan 82 p 2
~ [Editorial]
( Text ] Th~ Japan-US Conaultative . Committee on Security
. ~Friday agreed to launch a study covering bilateral
cooperation to cope with aa emergency in the Far
East. In concrete terme, the atudy is to determine in
what ways Japan can support US military operations
- in case of another war in , Korea.
The .Tapan-US security setu~ is a hollow promisP :
if both sides are unable to cooperate with each other.
Article 6 of the treaty allows the US to use basea in
- Japan to clefend this country as well as9 the peace
- and security of the Far East. Naturally, Japan has
'to cooperate. A.nd Japan cannot reject the planned
study for that reason.
- But the study shouId be carried out strictly within
the limits of existing laws, including the constitution.
' . The study of an emergency in the Far East ahould
- not be conducted unconditionally. ~ ~
- ~1o Prior flbligatiflns . ~
' ' As a precondition of the joint study, it ia stateci
.that both governments are absolved from takyng
mandatory legislative and administrative steps to i~n-
: plement the findings of the atudy. This means that
~Japan is under no prior obligation. Under this prin-
cipl~:, Japan will be able to diatinguish betw~een areas
- where it can coopera.te and where it cannot. Further-
more, the prior consultation system ahould be strictly
- anplied in carrying aut the joint atudy.
- The restoration of Sino-Japanese and SinaAmeri-
- can relatione has drxstically changed the Korean
- equation. The US military presence in South Korea
virtually ru1ES out another military clash on the
- peninsula.
- Contingency Planning'
But, one muet prepare for the worst. If ever there
should be another clash in Korea, the ~ poasibility '
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~z~R n~FeciA~. (1SE ~1~II.~r
arises that Japan could get involved~ ~erhaps ~on the
- grounds of collective defense, although the constitu-
- -tion forbids such an excuse.
- The US is not always right ia its judgments. Japan
- needs to set up a system under which it can judge
- situations coolheadedly. The prior consultation sys-
tem serves this purpose. Japan should also prudently
study the reperaussions of allow:ng US aircraft based
~in Japan to engage in direct battle.
Du'ring negotiations for the return of Okinawa,
then prime minister Eisaku Sato gave a de facto
"yes" to the sally of ~US aircraft from Okinawa. To-
day, such consent needs reexamination when it bears
on the fate of this country. ~
~ Prime ~iinister Suzuki and other cabinet ministers
should h~ kept directly informed of the nature of the
studies. Otherw~ise, they may not be ab:e to~nake a
free decision in the face of a fait acc~mpli.
The Diet, on its part, should conduct an in-depth
study on security. Otherwise, the study of emergency
' situations may adrance to such an extent that it ha~
- , passed civilian control.
~ , (Tanuary 10)
;
COPYRIGHT: THE DAILY YOMIURI 1982
CSO: 4120/135
~
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- POLITICAL AND SOCIOLOGICAL
SUZUKI BARES INSTRUCTIONS FOR JOINT SECURITY STUDIES
Tokyo THE DAILY YOMIURI in En glish 13 Jan 82 p 1
[Text] Prime Minister Suzuki Tuesday announced a set of "principles for national
security studies," emphasizin g the need for establishing a defense setup "well
suited to Japan as a country encircled by the seas."
The premier's views on The "hedgehog theory." become s focus of discus-
the natinn's iuture defense however, runs counter to sions in the ordinary Diet
priorities came in the form the Ground Seli-Defense session to be reconvened
of instructions to Defense Force's (C38DFi argument January 25.
Agency Director - C~eneral that land troops are the Besides the "defense ef-
Soichiro Ito and Chief Ca- �~core of milltary poa~er" of forts well geared to Japan
binet Secretar~ Kiichi Mi- a country. as a maritime country," the
yazaa~a aiter a cabinet The Defense Agency as a instructions also gave spe-
~ meeting Tuesday morning. whole is in favor of a de- cial i~mportance to keep any
In the extraordinary fense setup based ~ on a ~~arbitrary moves" by the
nine-point instructions, the "well-balanced bulldup" oi Defense ABency in check in
prime minister also called the nation's grour.d, mari- dealing with defense-related
for the Defense Agency to time and alr forces. problems.
be '�as prudent as possible" Indlca,tions are that the In engaging in the recent-
in its joint studies with tre premier's "sea-encircled
= US on contingencies in- country's hedgehog defense ly agreed Japan-US joint
- volving the Far East regiun, setup" theory will ca~ase studies on defense coopera-
so as not to cause dfsarry strong reactions and opposi- tion in the event of con-
with the Foreign Ministry tlon for "thinking light of tingencies in the Far East,
and other government ground forces." the premier's instructicns
agencies. said, the Deiense Agency
ftegarding relations be- should use utmost prudence
Chief government spokes- tween the premier-proposed and be in alose consulta-
man Miyazawa said later nea~ defense concept and the tions without f~,il with other
Tuesday that the premler's existing defense buildup mir.istries and agencies
concept of '�defense setup program, Mtyuzawa suggest- ~oncerned.
befltting to a seagirt coun- ed the poss1b111ty of the The agency should bear
trv" can be interpreted as program being replaced by ~~ind the opinlon Lhat
meaning that Japan 1n its a new defense outllne in the Japan-US joint deiense
dcfense effor~s should give favor of greater emphasls on studles might lead even-
priority to maritime and t1~e marltlme und u1r de- tually to a sort of collec-
uir defense capabilities ra- fense capabilitles.
ther than ground, forces. tive defense setup, which
Miyazawa quoted ~~.he was banned by Japan s
The new concept Ls in ppemier as saying that the . constitution, the premier
line with the premler's be- nine-point instruction were told Ito.
lief that the goal of Japan's aimed at unifying views
defense ePiorts should be within the government on Adding to the eonstitu-
set at makin~ this country defense matters, aince de- tlonal issue, the premier
spiny "hedgehog" capable fense issues are certain to instructed the agency h~ad
of drlving back militarv at- to be in close touch with
tacks on Japan before the Foreign Ministry and
enemy forces land, Miyt?-
zawa explalned.
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thr CubUiel Le61~luLlou Bu-
reau regarding possible re-
vision oi defense-related
laws in connection with
the Japa:z-US defense stud-
ies.
Reiterating the need for
= the Defense ARenc~ tn be
circumspect not to Bo
arbitrarily, the premler also
reminded Ito of the need
for close consultation in
proceeding with the plan-
ned Japan-US exehange of
military technology.
COPYRIGHT: THE DAILY YOMIURI 1982
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PULITICAL AND SOCIOLOGICAL ~
SUZUKI ISSUES NEW DEFENSE CONCEPT
Tokyo THE JAPAN ECONOMIC JOURNAL in English 19 Jan 82 p 10
[Article by Yuji Koido]
[Text]
Prime Minister Zenko Suzuki recently io- Corrimenting on Suzuki's instructions,
structed Director-Ge~eral of the Defense Director-General Itb said, "This is the tirst
Agency Soichiro Ito to strengthen the Mari- time that the Premier has talked abaut.de-
time and Air Self-Defense Forces by "map- tense comprehensively.:He has asked, me to
ping out a deferLSe plan or system appro- search tor ways to defend Japan in its own
priale for a maritime nation." ~The premiec ways, so his instruction shouW be reflected
also counseled Ito that Japan needs to be "a upon the future course of our detense pla: "
- porcupine" to be able to inflict heavy Yet, some oECicials of the Defense Agency
damages upon an invader. have wondered why Suzuki "had ~ given
Suzuki's instructions are, ot course, de- those instructions now." The argument that
signed to cope with an expected heated de- Japan should be "a porcupine" or strengthen
bate on defense in the coming Ordina ,ry Diet its maritime and air~torces is not new and
' sesion slated to reopen next Monday. The has been discussed time and again in the
Defense Agency is planning, however, to re- past. Why then did Suzuki talk about
view a fundamental detense buildup pro- defense now in such a comprehensive mai}
gram again.. ner? Replies .to this question may be thaee-
In addition, Prime Minister Suzuki has in- (old: ~
str~icted Ito on the following points: -It is inevitable that there will be a heated
-The defense budget was expanded as a debate on deferBe in the coming ordinary
step to achievE the 1976 defense buildup plan, Diet session slated to reopen aoon, so the
not to cope witt~ the deteriorated internation- Suzuki launched a balloon agairut expected
al environmen~ opposition ~illing oi government leaders.
-The remaining defense budget outlays -Suzuki wanted to place a brake on
will be distributed equally in later years. t}~e defense budget, which has increased
-The personnel cost accounts for 40 per more substantially than others. That is, he
cent ot the 19s2 defense budget ( Y 2,586.1 bil- wants to reduce the weight oi grosmd forces
lion or 0.93 per cent of GNP), but the Defense in the budget and put more on maritime and
Agency should consider a more etficEent air forces ko build up ma jor weaponry,
utilization of its budget. -The emphasis on maritime and sir forces
-Japan and the United States agr~ed in e ~5~~~ ~ meet the U.S. request for a de-
recent consullation to start formal studies on ~
possible joint military actions in case ot fense buildup in Japan s neighboring seas.
emergencies in the Korean Penir~sula and the 'I'h~s was clearly illustrated when a visiting
Far East. Such studi~ should not be done, U.S. Congressional delegation told Dietmen
however, in such a way that they invite criti- of the ruling Liberal Democraflc Party that
cism sug~esting they will portend the en- they highPy appreciate Suzuki's'1982 defense
(orcement of the right of collective seli-de- budget which inereased by 7.54 per cent over
fense. That is banned under the ConstituCon. the previous.year, but urged Japan to make
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N't)N UH'H'1('IA1, lJtil~: UNI,Y
furthrr dcfert,r rfturts in d'J!rmnl acaas lika
securing sealanes to Uansport crude oil from
the Middle East to Japan.
_ Among various instivctions given by
Suz~ilci, Defense Agency offici~ls are
especially concerned over repulsion of in-
vading forces at Japan's waters' edge; a
"porcupine"-like d~ense of Japan by utiliz-
ing� highly-sophisticated surface-to-air
_ missiles and the cost ceiling on the expansion
o[ personnel. Ftirthermore, contrary to
Suzuki's emphasis on maritime and air
forces, the Defert~e Agency is seeking
balanced growth in all three (~round; mari--
time, and air) branches ~ their forces, so the
premier's instruction will invite another
- heated debate within the Defense Agency.
Another problematical point is whether
Suwki's instructions were issued siter his
con~~ltation with the n~ling,LDP. There is a
possibility that his ir~tructions came~ out
from a recommendation from Chiet Cabinet
Secretary Kiichi Miyazawa alone. Thus
chances are likely that the Suzuki's instruo-
tions will be a target o[ debate within not
only the Diet, but also the Government and
the LDP.
COPYRIGHT: 1982, The Nihon Keizai Shimbun, Inc.
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FOK UMFI('IA1. litil~: ()Nl.l'
POLITICAL AND SOCIOLOGICAL
SOVIET-JAPANESE RELATIONS
_ Tokyo MAINICHI DAILY NEWS in English 9 Jan 82 p 2
[Editorial]
[Text] Prime Minister Zenko Suzuki called on the Soviet
Union to exercise prudence in dealing with the Polish
issue, sounding a warning that the Soviet government
has been interfering indirectly in Polish affairs. He
- conveyed the warning through Soviet Ambassador
Dmitrii Polyanskii who visited t6e prime minister on
the occasion of his departure from Japan for
reassignment.
There is no knowing ~xactly to what extent the
Soviet Union has been involved in Poland's crisis.
dudging from the position of Poland and Soviet-Polish
relations, w~e cannot say that the Soviet Unioa had
nothing to do with the recent turn ot events there.
Polish Prime Minister Wojciech Jaruzelski said he
had tak~n the step toward military rule in order to
avoid "a civil war." There is little doubt that by civil
war he meant Soviet military intervention as in the
case of Hungary and Czechoslovakia.
The biggest concern of the world in connection
with the Polish problem is whether or not there exists
Soviet military intervention. In this regard, the
United States and Western European countries ~
recognized the existence ot the Soviet Union behind
the developments of the Polish situation and called on
the Soviet leadership to exercise seli-restraint. Prime
Minister Suzuki has takea a similar step by issuing a
warning to the Soviet Union.
The Eastern European crisls poses a very dif-
ficult problem for the West because it is impossible to
expect radical reform or a chan~e ~ by force ia this
area, given the strength oi the Soviet Union which
regards the area as its sphere of influence as a tesult
of victory in World War II. The Western side b~lieves
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that fui~ lamental human rights are ~ot fully
guaranteed there.
Against sucb a background, the West has been
very caref.~l in dealing with the Eastern European
problem. 'Their cautious manner, on t6e other hand,
has helped the Soviet Union to strengthen its coatrol
of Eastern Europe. The only thing left for the i~lest is
to keep on expressing its concern and call~ng on the
Soviets to exercise restraint. All we can do is to wait
for a gradual liberalization ot the Soviet Union and
Eastern Europe as a whole through a revival of
detente. The liberalization of Eastem Europe through
increased exchanges between the West and the East
made little headway mainly because detente was on
- the wane. .
Thus viewed, thefuture of the Polish issue lies in ~
- the diplomacy vis a-vis the Soviet Union. The keynote
of diplomacy toward the Soviet Union is to spealc out
~ when we must without closing the road leadin~ to
dialogue. Prime Minister Suzuki also expressed hi~h
expectations for the top-level consultations between _
the two countries scheduled for Jan. 20 Iu Moscow.
It was the first time since February 1978 that the .
Japaaese prime minister had met the Soviet am-
bassador. In the face of the chilled relations, we
sincerely hope that bilateral dialogue will soon be
revived.
COPYRIGHT: MAINICHI DAILY NEWS 1982
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POLITICAL AND SOCIOLOGICAL
E.~ITORIAL OUTLINES IMPORTA1uT AIMS OF POLITICAL CIRCLES IN 1982
Tokyo THE JAPAN ECON~MIC JOURNAL in English 12 Jan 82 p 10
[Editorial: "Politics tn 1982"]
[Text]
The lhree most important acts demanded of Japan's
~ political circles in the new year of 1982 undoubtedly will
be vigorous prnmotion of administrative reforms, elimi-
nation of trade frictions, and adequate handling of the
; expected serious aftermaths of the court decision on the
Lockheed payoff case.
~ Why i~ vigorous propulsion of administrative reforms
~ so important? It is not simply because the Suzuki Ad-
i ministration's fate virt~ally depends on it. It is vital,
~ first of all, because a complete review of the nation's en-
tire administrative and dependent systems is manda-
I tory, now that the Japanese economy has definitely.run
; into a slow-growth period.
Administrative reforms are also necessary if .Japan
truly wants to prevent its economy from developing a re-
calcitrant disease of its own, similar in nature to those
plaguing other advanced countries. A complete review of
welfare systems is especially urgent.
Another rationale for administrative reforms is'.the
fact that if the governmenl deficits are long lefl ~t the
current exhorbitant levels, it wi~~� not ohly rpb pilbliC
finances of highly-needed maneuverability and effec-
tiveness but also may very well lead to vicious inflation.
As to international frictions, the crisis had barely been
avoided for lhe timc bein~ as Japan hiked the growth
i�ate of its defensc budget for Ihe new fiscal year to 7.75
pc~r cent at ihe end of last year. This apparently appro-
priate step, however, seems to be highly unpopular not ~
only a?nong politicians but also among the general pub-
lic. Many of lhose who are opposed to higher defense out-
- lavs maintain that as long as Japan is under the Peac~
('onstitution, it should do its part in international co-
~ ~~pc~rati~n not in the field of military hardware but in eco-
nomic assistance. Some, on lhe other hand, believe that
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Jap~~~~ ~~~�i r~~ua~~ U:e t~wtste~.~ ~~f the lteagan Ad-
ministratiosi which seems to be committed to outright
confronlation with the Soviet Union.
The contentions of those opposed to greater defense ap-
propriations are understandable to some exterit, it is
true. Are those people, however, really aware of the fact
that not only the Americans but alsa EC member coun-
tries are convinced that Japan's economic prosperity de-
pends primarily on its penny-pinching in the field of de-
fense? It is futile in the face of such a strong conviction to
- lry to reason with them that economy and defense are
lwo different things. We cannot simply ignore the fact
that such a view is widely prevalent in Western countries
and that this conviction is now being further fanned up by
the reality of the severe 8-9 per cent unemployment rate.
Japan has to pay "social expenses" for the sake of peace.
Moreover, it is doubtful whether the Japanese people
are willing to increase the nation's economic cooperatian
to other countries by all that mach. At present, Japan's
ODA cofficial development assistance) represents a
mere 0.34 per cent of the nation's GNP. Are the Japanese
people truly willing to increase the ratio to the 3-4 per
cent level, the ratio of defense expenses against GNP in
EC countries?
The final outcome of the Lockheed payoff casre involv-
ing former Prime Minister Kaku~i Tanaka is, of course,
anybody's guess at the moment. It is, however, clear that
- the court decision on the case, when it comes, will have
serious repercussions not only the Tanaka faction and
the Liberal Democratic Party as a whole but also on the
entire Japanese people. How will the ruling party cope
with the expected repercussions? As long as Japan's
democracy and the people's confidence in politics depend
- strongly on the conservative party's rea~ctions to the final
court decision, it is necessary from now to be fully pre-
pared for the eventuality.
COPYRIGHT: 1982, The Nihon Keizai Shimbun, Inc.
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POLITICAL AND SOCIOLOGICAL -
COMPLICATED TIE~ BETWEEN NAKASONE, WATANABE
Tokyo MAINICHI DAILY NEWS in English 13 Jan 82 p 2
[Article by Takehiko Takahashi]
[Text]
On Jan. l a tent was put in the stature as a new leader, to call the Tanaka residence.. The
garden of Adminlstr~tlve and express greetings lo influence o[ the Tanaka taction
Management Agency Director Nakasone on New Year's Day and the streagth ot Taaaka
General Yasuhiro Nakasone's . w o u I d h a v e v a l u e i n himselt were appareat. Among
residence ~which is being strengthening Nakaso~ie's thecallersweremembersotthe
rented from former Giants political position. present cabiqet and pact~+ ot-
Manager Shigeo Nagashima). Forelgn Minister Sakurauchi ficIal~s, as well as leaden ot the
Tables were placed here and asked k'iaance Minister political worid and pmminent
there in the garden. Many New Watanabe, "What is your, governmentofficials.
' Year callers were there. Among ~o~ ~~y? To this, Wata- Presenting a decided contcast
those who stood out were pabe replied. "The same as to this show of iniluence by
Foreign Minister Yoshio yours." When Sakurauchi Tanaka was toraner Prime
Sakurauchi and Finance continued with "What about the Minister Takeo Fukuda. For
~ Minister Michio Watanabe. shadow general?" Watanabe about one week from We last
. oreign '.Viinister Sakurauchi e~We~. ~"fhat too is the year-end to the first part of
is a member of the Nakasone ~me as with yoa" Jaauary~ Fukuda left Tokyo
faction. Finance Minister $efox calling on Nakasone, and rested in ~ 11[iyazaki
Watanabe belonged tormerly to Finance Minlster Watanabe Prefecture. One year ago ~t had
the Nakasone faction but left it visited the Mejiro� residence ot beea the same. It Tanaka
over a ditference oC attitudes tormer Prime Miaister Kakuei represented "movement," then
t o w a r d t h e 0 h i r a a d� Tanaka and expressed his New Fukuda showed "repose." It
ministration. Nakasone was Year greetings to Tanaka. was certaialy a contrast.
anti�Ohira while Watanabe Gathered at the Tanaka It is a t~ct that Nakasone ts
supported Ohira. r e s t d e n c e w e r e m a n y aiming for the pctimkrship.
Wataaabe tater tormed his politicfans ot the Tanaka fac� That is only natural, After the
own group but then begen to tion. Speakfng to them. Sato administration, 'fo~u~ men
have contact with Nakasone Watanabe said, "I ask toc yotu' - Tanaka, Fukuda, Ohira and
again and nn Jan. 1 Watanabe coopetation," and raised a toast Mlki - vied for the premier-
was one of the caUers at the tel[citating the tuture ot the sbip. All four have. swce
Nakasone residence to express ~'anaka factton. become prime ministers.
New Year greetings. ~nuence Of Taaaka At tirst Nakasone supported
Hakasone smiled broadly as Tapaka. T'nis ubstructed the
he welcomed Watanabe. This is It la sald that this year again. bicth of the Fukuda ad-
because it was Eelt that for about 400 penons called to ministration and ?n t1~e next
Watanabe, who is gaining express New Year greetings at general eiection, the votes cast
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tor Nakasone showed a big drop Following the death of Ichiro
(Nakasone is from tt~e same Kono, Nakasone succeeded to
third electoral district of his faction. Nakasone is facing
G u m m a P re f e c t u re a s difficulties as th~ boss of a
~'ukuda). faction. Not much time has
When the first open ele~tion ot passed as yet after Komoto
the party president was held, became a tactioa's boss.
Fukuda, Ohira, Nai~asone and Theretore, the ocily boss ot
Komoto were the candidates. established factions who has not
Contrary to the earlier yet become the prime minister
predlction, Ohira ranked first in is Nakasone. For that reason, it
the preliminary voting. Fukuda is perhaps only natural that
declined candidacy in We maia Nakasone ~s strongly desiring.
election ( by Diet members the LDP presidency.
affiliated with the Liberdl- For Nakasane. the attitude
Democratic Party), with the takea by Watanabe, who Is
resWt that Ohira became the gaining strength as a new
- party president. Following the leader, is a matter of great
birth of the Ohira ad- concern.
ministration, Fukuda, Komoto When Watanabe called at
and Nakasone became an anti� Nakasone's residence,
mainstream existence. But in Nakasone steppQd torward
the voting on the aonconfidence eagerly, bowed firsi ond
motioa against the Ohira grasped Watanabe's band. This
cabinet, Nakasone separated was an indication of Nakasone's
'[rom Fukuda and Komoto and expectations being placed in
= supported the Ohira ad- Watanabe.
- ministration. It is questionable, however,
Nakasone today Is thinking whether Watanabe will take
that receiving the backing of politica! action in exactly the
the Tanaka influence will open way desired by Nakasone. This
the path to the pre .,iership. His is clear from the fact that
policy is therefon~ to cooperate Watanabe visited the Tanaka .
with ihe Suzuki aaministration residence [irst on New Year's
that the Tanaka taction is D a y b e f o r e c a i l i n g o n
supporting. Naka~one.
~
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POLITICAL AND SOCIOLOGICAL
IDITURIAL ON ADMINISTRATIVE REFORM
Tokyo MAINICHI DAILY NEWS in En~lish 11 Jan 82 p 2 �
(Text] The Second Ad Hoc Council on Administrative
Reform is scheduled to submit its interim report this
- month and a basie recomrnendation in June or ~July,
- and Prime Minister Zenko Suzuki will face the cruCiaJ
moment whea he must give full play to his leadership.
- The prime minister has often declared that he has
been staking his political career on administrative
reform. In thls regard, we hope that he will demon-
strate his ``unfalCering posture" to tackle the issue. In
reality~ however, we are disappointed with him as he
- has been lukewarm toward the realization of the
council's first recommendation during the past year.
Even Chairman Toshiwo Doko and other members of ,
- the councu expressed their dissatisfaction: It seems
that the prime minister betrayed the expectations of.
the nation.
Prime Mini~ter Suzuki submitted a package bill
calling far reforms, but he had simply picked up tbase
items in the recommendation that might encounter
least resistance from the bureaucrats and other
pressure groups. Many vested interests were lett
untouched. The proposed cut in government subsidies
was insufiicient. In the compilation of the 1982 fiscal
~ budget, he also tailed to trim the budge~s related to
agriculture and torestry.
It is thus small wonder that Chairman Doko
declared he was greatly dissatisfied with the out-
come. The government ltself was reluctant to carry
out a scale-dQwn, while attempting to increase
~evenues in an easygoing ma~ner. Th~ essence of
administrative retorm Is for the govecnment to trim
its overly eacpanded size. This the government
- neglected completely,
No matter how splendid the recommendation
may be, the retorm will make little headway unless �
the government Is determined to carry it out. All
depends on the determination oi the prime minister.
_ In the tirst place, th~e prime minister should not
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mix administrative reform with tiscal retorms. The
- prime minister contends that the adminlstrative and ,
fiscal reforms are like both sides of a coin. It may be
so as a matter cf consequence, but Ehe two problems
are originally on different planes. Administrative
reform should not be subsidiar}~ to fiscal reform. Th~
primaxy purpose of administrative retorm i~ to
realize a�`simplified, effective" gover~ment by
paring the fat off the administration to meet ad-
~iiinistrative demands in the new age. As a matter of
consequence, it may lead to fiscal reconstruction, but
that is not the final aim.
An opinion is prevalent in some quarters that
administrative reform tends to invite repression.
Such a voice is heard even within the government
circles, but the Suzuki cabinet should overcome such
a negative view since the realization of a small
- government by administrative reforms Is the only
_ way for the govermnent to meet the expectations of
the people. Thoroughgoing review of government
spending is the unanimous call of the people now
suffering from an increased burden of taxes ~nd
public utilities rates. �
- The prime minister should also pay all-out
respect to the recommendations of the council. So far
he has capitalized on the recommendatioas to cover
the shortcomings of the administration. He ~as shown
a posture as if fie were willing to delegate part of his
authority to the council, but It turned out to be a mere
gesture,.an empty stance. This is nothing more than
the negligence ot political duties on the part oi the
_ prime minister.
We must call on the prime minister to redouble
his efforts in smashing the uncooperative attitude ~f
bureaucrats toward administrative reform. He must
overcome the re~istance of interest groups. The ~
administrative reforms of the. past failed simply
because they ~vere watered down before being sub-
mitted to the Diet, largely due to the uncooperative
attitudes of the bureaucrats. In order not to repeat the
same fcnistake, the prime minister is urged to
demonstrate strong leadership thrnugh his cabinet
ministers.
Now that he has repeatedly promised the nation,
we believe that not only his leadership but his own
cabinet is at stake. Any half ineasure. designed to
postpone the execution of reforms will only speed up
the collapse of the government.
It is regrettable to note that the nation is losing
interest in reform. The prime minister should be held �
~ solely responsible tor this.
- COPYRIGHT: MAINICHI DAILY NEWS 1982
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POLITICAL AND SOCIOLOGICAL
FOREIGN MINISTER WARNS STAFF TO PREPARE FOR 'ROUGH.WEATHER'
Tokyo Ti~ DAILY YOMIURI in English 10 Jan 82 p 2
[Article by Minoru Hirano]
[TextJ l~oreign Minister 3akurauchl noted in hls take.
New Year address to the F'oreign Miaistry The Foreign Ministry's. conclusion is that
staS on January 4 that Japan was blessed 1982 will be an even more unatable and
with Sne weather on the flrst three days uncertain year than 1981.
oi January, that he wlshed tYse world's Quite a few schoIars warn that in such
weather would stay just as flne this year; an internatiunal cllmate, Japan should not
but that this was unlikely to happen. FIe sing the pralses oY peace and chortle its
thus wamed the ataS to t~e prepared ior se~i-conSdence to the rest of the world,
rough weather. that Japan !s earning loreign Srowns for �
Sakurauchi's warning was pertlnent. The its excessive emphasis on economic muscle,
dc~eatic situation Sn lapan is peaceful that Japan should. not forget that the US'
and tranquil. The Japanese think they are and Western Europe's concern over 3oviet
- living in the most peaceful country on military strength and the inatability in
earth and ara the happlest people in the the Middle East !a behind the trade tric-
world. They were sllghtly uneasy g~out tion between Japan and Westem countrles,
their future at the outset of the 1980s. and that 1982 will be a year when Japan's
Now they are conSdent of the future be- isolation lrom the rest o! the world will
cause they helieve Japan will be able to b~come prominent.
lead the r,est ot the world in such frontier Aware of such a probablUty, the Jap-
technologies as electronics, robotics and anese Ciovemment inereased defense
biotechnology. Most Japanese newspapers spending in the 8sea1 198Z budget by 7.75
in their New Year supplements featured percent over the preceding year to show
ind'ustria.l roaots, and this is symbolic o! Japan's willingness to periorm its defense
the future of Japan. Optimism in Japan role within the Western camp. US Se~-
has expanded further as the specter oi retary o! 9tate Alexander Haig and Sec-
OPEC's dominance over the world was laid retarq n! Defense Casper Weinberger im-
to rest and oll prices have begun to de- mediatelq addressed letters to the Jap-
cllne. anese C3overnment saying that they highly
What is the actual international situa- appreciated the Japanese step.
- tlon surrounding Japan? The Japanese C~overnment also hoped to
The Foreign 1VIInistry sizes up the situa- allay trade friction through increased de-
tion as follows: fenae spending because the US has com-
� All problems requiring qulck solutions, Plalned that Japan, by iree-ridlnP the
such as the Soviet occupation ot Af- Japan-U3 security treaty and spendi~ig too
ghanlstan, the Iran-Iraq War attd the ~ittle for delense, was making large sur-
Kampuchea problem. have been brought pluses in its trade with the U3.
forward, unsettled, lnto the New Year. ' However, US Ambassador to Japan Mike
� The enTorcement o! martial luw in Po- Mansfleld crushec~ this hope on January
tund and Israel's annexation oi the 8 when he made a distinction tsetween the
C3olan Helghts have intensifled tensions in defense problem Qnd the trade issue, sa, -
Europe and the Mlddle East. ing that the cause of trade friction be-
~ Because of these re~ionai disputes, it is tween Japan and the US and Japan and
dlfHcult to predict what c~~~rse the U3- Weatern Europe was in the closed charac-
Soviet nuclear arms reduction talks will ter of the Japanese h~arket.
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Criticlsm oi Japan by the US and West-
ern Europe i~ alao dlrected against the
fact Lhat ,japan depends on exports rather
than domestic demand to spur its eco-
nomic growth. In the government budget
- tor 8sca1 1982, a reduction o! interest is
the only step aimed at stimulating do-
mestic demand whlle both Sscal policy and
the tax system are to perform the roles
of dampening domestic demand.
- Then, trade friction between Japan and
Western countries will eacalate in 1982.
Forelgn Vice-Minister Ryoao Sunobe pre-
dicts a violent storm.
_ COPYRIGHT: THE DAILY YOMIURI 1982
- CSO: 4120/I35
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MILITARY
SECURITY PANEL APPROV'ES JOINT DEFENSE STUDY
Tokyo MAINICHI DATLY NEWS in IIzglish 9 Jan 82 p 1
~ ~Te~~ Another milestone was set in Japan-U.S. defense cooperation
Friday. 'I'he 18th Japan-U.S~ S~curity ConsuYtati~e Committee
(SCC) agreed to begin a joint study on defense cooperation in ca~es
~f emergency in~ the Far East ou~tside Japan.
The joint study was proposed remai~inB su6jeat was defense closely to the U.S. in the field of
- in the guidelines for Japan-U.S. cooperation in cases of defense.
defense cooperation, which emergetlcy In the Far East, The government already has
were adopted at the previous notably, the Kor~an Pentnsula. announced a sharp 7.75 percent
meeting of the SCC_ held in Friday's meeting, held at the increase in defense speading for
November 1978. Foreign Ministry, was par-. fiscal 1982 and is elated by
With Friday's agreement, the ticipated in by Admiral Robert appraisals comiag from
two parties will start working Long, commander of the U.S. Washington.
within one month on joint Forces, Pacific, U.S. Am- The indications are that the
defense scenarios, taking into bassador to Japan Mike joint study on Far East
consideration existing con- ~Jtaastield and other U.S. of- emergencies and the sharp
stitutional restraints and ticials. increase in defense spending
related damestic laws. The Japanese delegation was will be hot issues at the Diet
The SCC is the tiighest con- led by Yoshio Sakurauchi, which reopens later this month
sultative organ on the operatlon foreign minister, and Soichiro after the a?inter recess.
of the Japan-U.S. Security Ito, director general of the At tde ontset ot We meeting,
Treaty which went into force In Def~nse Agency. the two parties exchaaged
lg6p ~ By most accounts, however, it �~ews ao international affaiirs,
Japan's contribution in an is an agreemeat that creates notably, the situation ia Asia.
- emergency would mostly con- questions, it presupposes a Admira! Long stated North
- cern logistics - supply, trans- more active Japanese rnle in Korea has advantages over the
~ portation and communication. joint defense and the chances of South in every aspect of
A4ore importantly, however, it Japan being drawn tnto a war military power.
coWd also involve pmviding would be far greater. But South Korea is politically
- Seli-Defense Force bases tor It woWd also run counter to stable and if It is combined with
the U.S. armed torces. ~ ' the Japanese Constitution, a tirm American commitment
The Japan-U.S. detense which does~not a11ow Japan to and steady defense buildup, a
guidelines also called for take action in collective military conflict on the Korean
studies on actions to be taken in security. ~ Peninsula is unlikely, he said.
case of a direct attack oa Japan However, the Suzuki gov- Both Long and Ambassador
and measures to deter ernment, which wants to ease Mansfleld stressed attention
aggression. ~ the trade friction with the must be focused on the Soviet
The studles were completed United States, has apparently capability in evaluating Soviet
tast year, and the only decided to align itself more might because inteation could
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change overnight. the government is nuw working
- Foreign Minister � Yoshio hard formulating principles for
Sakurauchi said the Soviets are technological transfer.
faced with a number of serious 141ajor General Moore, chief
problems; the economy, of staff, U.S. Forces, Japan,
minorities, Afghanistan, and later told the press at the U.S.
Poland. Embassy in Tokyo: "We
But despite tbese difficulties, betieve we should naturally be
combat ready now, completely
Sakurauchi said, the Soviets are ready. We believe that the
steadily expanding their government of Japan and
- defense capabilities and the p~ple of Japan perceive that
- West must keep.a close eye on there isa basic need. We would
them. like to see this happen as soon ~
He also said the South Korean as possible based on what we
economic si!;:~tion is quite bad perceive to be a definite threat
and Japan is willing to make as that has to be met.
large an economic contribution ~�If they cJapanese) deter-
as possible based on the prin- mine there's got to be a drama-
ciples ot ecoaomic cooperatioa tic change or rapid buildup, we
While highly appraising the should be prepared to assist
substantial increase in defense them. We should also be patient
spending for fiscal 1982, the enough to know in fheir
Americans stressed that the democracy that it takes time.
momentum should be c~rried in ~~~,ye would like to see a
more defense spending, defense successful capability, suc-
cooperation, and technological cessful ia combat tomorrow.
cooperation. We know it's going to take
But the Japanese side Ionger than that and we're
re[rained from making a firm going to work closely with them
commitment to the transfer of in a projective period...to see
military teck~nology to the ~ey are ready to meet their
L'nited States. Soichiro Ito, responsibility k~ the country
director general of the Detense ~d our responsibility to our
Agency told the Americans that allies."
COPYRIGHT: MAINICHI DAILY NEWS 1982 ~
CSO: 4120/135
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MILITARY
EFFECTS OF INCREASED DEFENSE SPENDING ON ECONOMY VIEWED
Tokyo MAINICHI DAILY NEWS in English 10 Jan 82 p 2
[EditorialJ
- [Text~ We have noticed the emergence of a dangerou~a
- sign in Japanese economic cireles. Yoshihiro
Inayama, president of the Federation ot Economlc
Organizations (Keidanren) and three other top
business leaders have told a joint press contereuce
that national defens~ and social welfare must be
treated as two different things, and als~ tbat the
defense expenditures in the fiscal i982 budget draft
are reasonable. .
In the statements of these business leaders, we
noticed a generous chorus of support for an expanded
defense capab%lity. At the same time, we als~~ kriow
that not a small number of bpsinessmen, es~,ecially
those in the service industry, are opposed~ to the
defense expansion. But the staEements at tne press
confer�.^.c� to have exposed ~n !~~!~~.rcur*ent
among business leaders who have become, tol~rable
toward mildtary expansion after the repeated
American requests for a bigger Japanese- role in this
specific field. We regard this as a dangerous sig~n
because we doubt that military expansinn and civilian
vitality or economic development can coexist.
In the postwar days, Japan gchieved the highest
economic growth rate in the worid. It has been
regarded as a model in this respe~t because of its
light military outlag under the war-renouncing
Constitution. This has also been proven by historical
fact when we compare Japan with the United States.
In short, among the democratic nations, the
productivity of Japan, whose military burden was
light compared with its gross national product
(GNP), has been exceptionally high while the
productivity of the United States, the super military ~
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p~~ver, has been the lowest.
- Japan's defense outlay remains less than one .
percent of its GNP and the total production of the
- defense industry is also less than one percent of the
total industrial output. Accordingly, economic circles
still remain optimistic that the vitality of the
Japanese economy and economic developmeat would
not be hampered by the militarization of the
economy.
Japanese economic circles believe that civilian
vitality must be maintained and that the free
economic system must be protected. We believe that
the business leaders must bear the responsibility of
thinking about the future of the Japanese economy
from a long-range viewpoint.
COPYRIGHT: MAINICHI DAILY NEWS 1982
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ECONOMIC
U.S.-JAPAN PERCEPTION GAPS, TRADE IMBALANCE PROBLEMS DISCUSSED
Tokoy JAPAN ECONOMIC JOURNAL in English Vol 20, No 988, 12 Jan, Vol 20, No 989,
19 Jan 82 pp 19, 24
[T~ao-part article by Aritoahi Soe3ima: "U. S.-Japan Perception Gaps and Trade
Imbalance Problems (1)"]
[12 Jan 82 pp 24, 19]
[Text ] After nearly 32 years af serv- The 18 years trom 1985 unGl major portion of the latter haff
= ice with the Japanese Govern- my retirement saw Japan's M my public llfe in promoting
ment I retired from public life transfor~nation lnto the rank of the liberallzation and restruc-
last October. In retroepect, a an "induaMulized country" turinB of the JApanese econoMy
history of my � public service under the IMF-GATT system: as well as developing measures
could be viewed as the ~twar 3apan's GNP gi~ew at an us~- to provide loans and credits to
history of the Japanese eco- precedented rate through the third world aad ioter-
~m , active importation d foTeign national organizations.
During the first 15 years, capital and technology as well ~ ThrouBhout these years ~ I
- from 1950 to 1965, Japan was as perpetuaY efforts to elevate have personally witnessed the
internationally ranked as a our indusMel structure and to strength of tt~e Japanese people
developing country. The coun- expand our exports. and their adaptability to
try was trying to rise from the With the objective of achiev- changEng external cir- ~
damages of the war. Aspiring ing an economy with features cumstances. I took gre~t prlde
to a standard d living compar- slmilar to those characterizing in being Japanese.
able to that ot the Western the economy oi otber Western Candidly apeaking, when I
countries, all of the Japanese countriea and in order to fulfill returned from military eervice �
people worked exhaustively. international reaponsibilities ag to a totally destroyed Tokyo 38
Fortuna.tely, those were the an indusWalized natian, su~ years ago, I had grave doubts
years when a free trade policy stantial liberalizet!~ measures ~~~w Japan could survive,
of the Western countries were taken end structural ~et alone, achieve today's
prevailed under the GATT-IMF upgrading aE the economy took affluence which was beyond
- system, from which Japan place. anyone's imaginakion.
greatly benefitted. This hiatory d the past-war However, hiatory changes the
During this period, the Japa- Japanese economy r:oincidea people, the country, and the
nese Government was able to Wi~ my history at the Miniutry world. With half of the popula-
adopt a protectionist policy of Finance. The ficst 15 years at tion now being tt~?e past-war
which was legitimately ac- my work were basically generation, there are few Japa-
~�urded to the developing couo- ~voted to the procurement a~ nese who know that Japan was
lries. In order to protect funds from the~ IMF/World labeled as a"developing couo-
domestic industries from for- gank or from the capital mar- try~~ untii only 1S years ago and
eign competition, both trade kets of the industrialized coucr that overseas sightseeing
and foreign exchange trat~sac- ~ Japan was chronically travel, for instance, was then
ti~ns were subject to strict rnn- 8~p~qg from a shortage d~ohibited. This lack of knowl-
trol. forei~ exchange. But I spent a edge about the rapidl.y chanaed
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- e.~:onomy ot Japan also applies ~t ~ increasingly competitive U.S. must he pcevented,
to Westerners. Many foreigners Japanese industries. There are especially if perception gaps
do not realize that Japan had a some who are familiar with develop attributable to such a
"develc~ping country" statas Japan and express their con- move.
until 15 years ago and simply cern over the present situation, It may be useful to briefly r~.
assume that we have always but they are generally less view the changing relative
enjoyed the same kind of living ~a~~, " positions of the U.S. and Japa-
standard that they have long image of Japan, which is nese economies in the past 30
had. I fepl that the major per- so distant from what Japan years. At the risk of over-
ception gap between the U.S. really is, began to emerge. simplification, I would like to
and Japan is based up on this W~t worried me mast was the point out the following four
point. fact that the misperception of features:
Experlences in the U.S. Japan was strengthening in the 1. The gap between the U.S.
American political circle. and Japanese economies
Twice I h:ive had occasions to ~is concern led me to per- narrowed tremendously.
live in the U.S.: for six years sonally visit all 50 states to While the per capita income
from 1962 W 1968 and again for ~ecture and to exchange views ~ of the U.S. was 11 times that
two years from 1979 to 1881. I Wi~ ~e American people at d Japen in 1850, it ia a mere
personally witnessed ' during large. I also contributed to uni- 1.2 times today.
these two periocls how su~ Ve~~ty magazines published by 2. Japan's bilateral trade
stantially the American per- Harvarc~, Yale, etc., to balance with the U.S., which
ception of Japan has changed. eradicate the American mis- showed chronic deficits in
When I first went to live in perceptions of Japan. the 1950s beBan to yield
America in 1962, the U.S. was However, the U.S. is a large stable surpluses begitminB
still a global giant and Japan a ~~n~.y. As a federal nation, in the mid-196os.
small Far Eastern nation. individual states t~ave _ more 3. WMIe the U.S. economy
Hardly any news of Japan was autonomous strength tl~an o?u' showed stcength throu~out
ever seriously treated in the efectures. the 1950s and until the mi~
mass media then. When there ~~rge businesses also have 60s, intlation seems to have
was a write-up on Japan, the an enormously strong influence been built into the economy
tone was warm, as thou8h an since the Vietnam war. The
adult were observing a good on political and economic deci- ~o~~Y ~an to falter and
child. Needless to say, a knowl- sion makers. Unfortunately, i~ ~ormance has been
edge of Japan by average ~o~d~ �'iticiam of Japan ~rticularly po.or in the last
Americans was then virtually expressed by a iew large three years. The GNP
- nil. Only the few who had spent American enterprises cap in' oW~ rate dr ped to
fluence blic opnion or Coo- ~ �p
post-war occupation years in ~ minus 0.1 in 1980, the infla-
Japan as soldiers or a handful ~'~smen af certain statea, who ~on rete has been double
of people acquainted with in turn can affect the entire ~g~~~ and the productivity
Japan had a rather pto-Jepa- U.S. public opicrion. Witnessing gi,oW~ ra~ hae been nega-
such political processea at work
nese sentiment then. tive sitlce 1978.
with my own cyea is a very
- But the second time I went to f~~~,8~ eXpa.~en~e 4. The Jepanese economy
live in Washington in 1979, the H~yeve~,, wth must persiat, showed remarkable growth
American perception of Japan t~. Aegardless ot how lo~ it ~rWBh~t the past-war
had changed ~'eatly. The may take and what difficult Yeers. Ww~e it stagnated
Americans no longer Veated efforts may be required, it ia ~~r ~e first oil criais, it
Japan as a child but regarded ~r r~~ibility to correct the has bcen growing atably
us as their equal. News and misperception ot Japan held by since 1975.
_ write-ups a6out Japan a~ many Americans. It is d para-
peared almost daily in U.S. Factors for bilateral
newspapers. The tone of the mWnt importance for ~e roblems
articles also changed from stability of the world that the p
positive to neutral to negative. U.S. and Japan - the 1arBest Some af the notable pheno-
At the same time, the Amer- and ~e second largest eco- mena resulting from the strong
icans began to know more ~m1es of the free world - Japanese economy and con-
, about Japan, although differing de~e~op mutual understanding. trastingly stagnant U.S. eco-
in degree by states and som~ particularly wocTisome Ie the nomy are aa followe:
what ':nfluenced by negative or ?mPact that U.S. protectiotdsm 1,Phe hl~ee, rat~ d y~;n the
critical voices of American W~~d have on the world eco- foreign exchange macket
business ip'oups which had last nomy. Such a te�ndency towaM 2 Expanding Japenese trade
protectionism on the part of the surpluaes with the U.S.
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3. lncreased Japene~e inveetr eware ot the cruelul lmpoct-
ment in the U.S. ance of trade. Perhaps the
I would like to confine my followl~ phenanena underllne
discussion to the problem af the ~8 BW~~ ~ deapite our
increasing and perpetual Japa- ~~~y p�~' ~~nguage ap~
nese surplus. titute, the Japanese study for-
Trade is so cruciaUy vital for Qign languages very dillgently;
the Japanese economy. The ~r ~ding canpanies always
only means of survival for among the mat popular
Japan, with a population af career choice of students; moet
nearly 12o million and withaut Japanese enterprises are
any meaningful natural strongly motivated to export
- resource endowment, is to their products; the Japanese.
import raw materials, process tend to preEer toreign-made
them and export manufactured goods (although most Amer=
products abroad. It showe a icans perceive ua contracily).
stark contrast with the U.S.
which has abandunt resources _
and a large domestic market
that have made export markets
rather peripheral in impor~
ance, at least ia the condcience
of most Americana, until
recently.
Virtually every Japat~ is
[19 Jan 82 pp 24, 19] ~
- [ Text ] The Japanese have started invest in training their staff for be over 100,000 Japanese busi-
from literally zet'o at the end of overseas business. nessmen living in the U.S.
= World War II. K~�wing that The second notable feature,~f ~Y� The number must ex-
� survival of the Japanese eco- Japanese firms is their ~eager- ~d .the total businessmen
nomy was only attainable ~8 to secure t~esoutces. F`or ~'om the EC living in America.
through trade, both the private Japan which relies for mast of Moreover, in 1956, the year i
and public sectors of Japan its natural resource needs on first went to the U.S., Japanese
attached priority to training forei~ supplies, securance af .products were synonymous
their staff, securance d raw resources is crucial. This ex- with "cheap but of poor
materials and exports of manu- plains why initia} Japanese for- quality." The reputation Japa-
factured goods. eign investments in Southeast nese products enjoy today
The first priority was to send ps~a, the Middle East, Aus- reflects the ccystalizaPlon af the
younger people abroad to study tralia, the U.S, and Canada painiul efforts every Japanese
and receive trairung. Mast Were approved even in the days has made with many tcials and
Japanese organizations started of scarce foreign exchange errors as well as financial
this system immediately after reserves. The actent to which losses over the past few
the war, which was by no the 1971 U.S. embargo of agi~i- decadea.
means an easily manageable cultural products to Japan as Developing a new foreign
task under the limited eco- WQ~J ~~,}~e 1973 oil crisia put the market requirea a tremendous
n~mic strength of Japan in entire country into a state af inveatment af, both finahcial
thase days. panic describes out total and human resources. I have
lYot only large firms but vir- ~~ndence upon imports. witneased meny inatanc~s
tually all entrepreneurs who Thircily, Japanese firms have wl~ere enterpcises felt too
arc interested in toreign trade made impressive efforts to ~feated to continue and left
have maintained this system of ~~.elop ^.xport markets. When
sending their staff abroad. The the country which they had
~I was an economic advisor in a decided to enter. On the other
[act that a large proportion of W~t African country some 15
Japanese students in American years ago, I was astonished to ~nd, however, I also know of
graduate schools are sent by meet a re resentative of an many firms which are~success-
- their employers indicates the ~scure Japanese company ful abroad, only after having
degree to which Japanese firms selling their praducts in the overcome many difficult ob~
remotest villages. There must stacles.
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~'!?R :)(~'f~'li'If.l, ll~}~: c~Nl.'Y'
structioi~s ~Penta-Ocean~, interest rates up and the yen by mar~y Americans. Anc! that
odd~ and ends among the slightly down and all. In is the closed nature of the mar-
machineries tTsubakimoto Kabutocho's new dialectic ket.
Cfiain), and a wide assort- tsince last year) that was While I think the Japanese
ment of scattered others problem of very complicated ~onomy is as open as many
~:~hose anly characteristic in distribution chaYi~r.:'s :n Japan. European economies with the
common was t:~e~; 11ai~~ layers of i:~tern;ediaries, sole exception of West Ger-
= manipulalion by many ad including trading companies many, I do admit that frequent-
hoc task forces ot corporate and wholesalers, exist between ly mentioned import inspection
treasurers, financial institu- producers and consumers. But P~'~~ures, medical inspection
tion fund managers, "in- it is a unique feature af the procedures, auto inspection
vestment consuitants," and Japanese market whicli has systems are too complicated by
securities salesmen operat- been developed against a com- ~ny international standard.
ing with large discretionary pletely isolated historical back- Fortunately, the U.S.
accounts. Par for the ground. These are faets of life Government recently came up
course, in other words. in the Japanese society which W~~ a 9-item specific proposal
A segment of the non- are not intended to dis- for Japsn to imprave imports,
ferr~us metals rates special criminate exclusively against one cavering tariff reductiop on
comment. Sumitomo Metal foreigners. 29 products an~ the other eight
Mining, plaything o[ old Admittedly, mastering the relating to NTBs. Many at'
C:inzo Korekawa, came alive Japar~ese language is next to these items are rather con-
again as nostrils flared over impossible for many for- ~ncing. While I don't think full
the rich gold seam it's cigners. The best alternative to acceptance of the propasat will
supposed to be digging up overcome that handicap fs to aubstantially impc~ove U.S. ex-
down around Kagashima. select and train promising ports to Japan, we must do
On 3 of the 4 trading days it Japanese nationals tor their what we can immediately in
accounted for 10 per cent of management. view of today's masaive trade "
~ total first section volume, The one encouraging trend is imbalance.
and on Tuesday that and 2 that many American tirms are W}y~t I would like to stress
others cMitsui Metals, increasingly promoting Japa- ~re, bwever, is that I don't
Mitsubishi Meials) absorbed nese to their top managerial any measure taken by the
no less than 38 per cent. In positions. The more successful Japanese side alone can solve
Mitsui's case the incentive, an American company is in ~e bilateral trade imbelaace.
boiled down to its essentials, Japan, the more adapted they In ~e first place, it is not
was that it owns a gold mine are to the Japanese saciety and even appropriate to discuss
in Kagoshima right next the more Japanese staft they bilateral trade s~trpluses or
- door to Sumitomo's. In this ~nd to have. deficits. Half of Japan's im-
- and almast all other cases, jdeas for alleviation Por~ ~ Petroleum. In order to
interest in the new faces pay for the oil, Japan must
arose primarily becauae Ever since the Tokyo Raund earn foreign exchange els~
their margin balances and of negotiatio~~s started, JApan's w~re. Moreover, our invisible
share prices were relatively b~~~ral trade surplus with the trade account has been yielding
~ low; the search [or respect- U.S, has been a serious issue large deficits. In order to
~ able rationales followed, Wi~ ~e U.S. Government. In- promote foreign assistance and
with results ot varying ~ed, the increasing surplus investment, Japan must earn
degrees of believability. At must be irritaGng to many surplus in its trade balance.
bottom it was that simple: Americans. Excellent management of the
Kabutocho is not a I, for one, however, who was Ja~nese economy has been
sophisticated miliev. iirvolved with the Tokyo Round envied by many countries.
All this was of course a o[ negotiations and served as ~y~t must be noted here is that
continuation uf the flavor the Financial Minister to the it is the efforts made by enter-
shown so far this year - and U.S., am not completely con- ~ises as well as the sense ot'
the last quarter of 19R1 too, ~nced that American com- ~~~s~bility aad discipline af
for thal matter; it's just that P~aints are always valid. Part i~~vidual labor in this country
_ the speculation became of the reason I am not con- that ahould be admired.
more blatant and the funda- ~~r.ced is that the complaints ~,y~~ We to leave the situa-
menfal figleaves ~amaller. It are often based on the outdated tion ea it is, Japan's surplus is
arose because forei~ers ~mage, or the misperception as ~~~nd to accrue even more. It
were still largely absent, ~scribed earliet, of Japan held Wlll further exacerbate the
what wilh U.S. short-term American public opinion, and if
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the worst com~s to the worst, it tion industry, petroleum Japanese firms to produce in
can invite a situation where the indusUy, service industry, to ; the U.S.
protectionist tendency cannot name a few. I ara among the b. U.S. export of the Ales-
be prevented in the U.S. The very first to pay the highest kan oi1 to Japan.
U.S. Administration has been respect to the enormouA c. More export of U.S. coal
consistent in defending free potentials of the U.S. toJapan.
trade and fighting protection- economy and believe that it d. Moce entry into Japan af
ism. However, the check and can revitalize if only enough the tertial sector industries.
balance mechanism in the U.S. resolutions are mtide. e. Ik is easential to coor-
Government gives an enormous c. When I lived in the U.S., I dinate both economic and
power to the U,S. Congress. did find many products in monetary policieb of both
- Then how should the im- ~erica which would be suc- countriea. Discusaion of one
= balance problem be alleviated? cessful in Japan if only they without the other leads us to
I would like to give personal cauld be tailored to the Japa- simply go around in a circle.
thoughts below: nese taste. The point here,
The , imbalance problem again, is the efforts to be Concludlon
ought ta be solved not by ~ade by American firme to pg an official of the Japsne~e
voluntary export restric- develop export markets Government with preasing re-
(there waa no Japanese who s~lbilides, I etressed the
tions of the Japanese com- pr.~~cted 10 yean ago that ~
panies but through increas- McDonalde would be eo ~uc- ab�ve pointa at every occaeion
ed U.S. exporta to Japan. cessful in Japan.> I had over the past two yeara. I
a. Both the U.S. and Japa- 2. Japan muat pureue an or- ~0 e~~ ~t ~ reaaon
nese Governmenta ,must ~y ~t $ome of the joint ventures have
reco~?ize that voluntary ex- forget that a ~udden u~ ~n BL1CCEdBEtII was because
port restrictions are not eurge tn export~ (no matter ~e Japaneee counterp~arts
helping either country. The ~ how popular a certain pcod~ showed competence in
past voluntaty restrictiong o~ uc! may be) ie dlsruptive aseuming reapona1bi11tlee,
steel or TV seta proved tbe ~and can trigger domeetic indicating that a ioint venture
point. The ongoing auto case roblems in im ortin f~~~ m~
is likewise to end in a similar p p g Eor Amerlcan firme to enter
countries. This ia easential, into the Japanese market.
result: if Japan wants to maintain I have recently accepted the
b. The U.S. should bring to a free trade. After all, the ~sj~~y of a joint venture
halt the dama~ng built-in gi~eatest beneficiary of tree firm end Z am nuw in a labo-
infletion and restore a trade is Japan. ratocy tube to pcove that my
strong America. America 3. As the long-term solution, I argument is cort~ect. I am con-
has the fundamental can recommend, among fldent that no m~tter how small
strength. Advanced tech- others: oar undertaking may be, by
nology which landed men on a. Further pcomotlon of making thia venture a success,
the moon or operated the I can contribute to the eradtca-
space shuttle is simply awe- tion of U.S.-Japen ecanomic
some: There are many other friction, a large part of wtrich
competitive industries; the ariaea from the perception gap.
aircraft industry, informa- lEndotBeMes)
COI'YRIGHT: 1982, The Nihon Keizai Shimbun, Inc.
CSO: 4120/130
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ECONOMIC
FEW U.S. MAKERS TAKE FART IN NTT PROCUREMENT BIDDINGS
Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 988, 12 Jan 82 p 9
[Text]
More than a year has for "Track II" which applies not appear very eager to
passed since Japan agreed to mainline communications Qarticipate in the biddings.
with the United States in equipment already available But this does not mean that
December, 1980 to open pro~ in the market and utilized by they are not interested. Dur-
- curement of Nippon Tel~ NTT with some modifica� ing the past year, about 240
~,traph and Telephone Public tions. The remaining eight inquiries have been made to .
Corp. equipment to interna- items are for "Track IiI" NTT trom foreign firms and
tional bidding. N`IT has kept which is applied to key parts gover�unents about procure-
~ its word during this period ot mainline communications ment pracedures. But when
and, upon President Hisashi equipment and calls for joint it comes to actual biddings,
Shinto's stern instructio~, research by N'[T and pri� there ace many cases that
implemented ita, tlvee~track vate tirms f~.>r eventual NTT foreign [irms' general
procurement procedures, ~e equipment under "Track I" .
thereby opening up its ~~~~Track I" category, dces not meet speciiicatiorB
market more speedily than bidding has been completed ot NTT. '
scheduled. [or 28 items out of the 81 For example, Hewlett�
But the U.S. Government ~~ling ~F 7.4 billion in Packard Co. of the U.S. was
and Cangress, trustrated value, and distlibuted very eaBer to sell its mea-
over the country's t15 billion among 41 tirms. Nine tor- suring equipment but did not
trade deficit with Japan, e~gn firms have won tenders participate in a bidding be-
still complain that N'I'T's tor eight items, including re~ tatLSe the company's pcod-
ope~ door policy is not suffi- search equipmenl~ :otaling uct did not match N'fT
cient. Their frustration is il- ~~~0 miUion: tt~ey are seven specifications: Hewlett-
lustrated by the propased pmerican and one Dutch Packard ~es "inch"�unit
amendment to the com- tirms. screws tor its products,
municatior?s act, pending in So far, 22 f irms have ao- wheareas NTT specifica-
Congress, to exclude [oreign plied to participate in bid- , tions call for "millimeter"-
(irms from the U.S. com- ~ng for nine items under unit ~raducts. On the sur-
munications equipment ~~Track Il" and "Track III", tace~ the difference between
market. in which only one foreign "inch" and "millimeter"
The items NTT has opened tirm, Motorola Inc. of the does not matter much, but it
to international bidding U,g,~ pert in a bidding can make a supplier to give
have reached 90 since ihe tor automobile telephone up participation in a tender,
agreement with the U.S. equipment. NT'C's expecta- as actually happened.
- took etfect. 9t these, el ere tions that more foreign Secondly, when it comes
categorized tor "Track I" W~~~ ~ke part in bid- to the procurement ot main-
which applies to g~eneral ~ngs ha,ve, up until now, not line cotnmumcations equip~
equipment and are procured come true. ment under "'Frack Il" and
through competitive bid- fact remains �'Track III," the interna-
ding. One item is classilied that contrary to NTT's ex- tional standard becomes a
pectations, [oreign [irms do
- 34
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~ hUR OFF1C'IA1. USF: ANLY
\TT�c Procurenient from Foreign Firms
~lem Company rurrN
Maqnetlc lepe for informalion processin0 Sum11pm0 ]M. Gnham Maqn~Nc Int.
Lowpressur~CVO .......Aavancea Semiconductor MatKials'
Grophlc Desiqn Syslem (11 CALMA Co.
Grephic Desipn SVStem Appliton Inc.
Profecfiun mask allipnment sysfem The Perkin Elm~r Corp.
Computer sYStem Dipil~l EQuipment
Multi diroclional tomoqraphy system � PhiliDf'
MaqnetrOnspultersystlm ..................WrianAssOtislff, Inc.
mooted point. NTT procures On the othec hand, a
products which follow clase- spokesman for NTT said.
ly the standard set up by the "The problem oE speciGca-
Consultative Committee for tions will be resolved with
~ [nter:?ational Tele~hon� and time. But since this is a
Telegraph (CCITT), but competitive bidding, we
U.S. Eirms, like Western cannot buy products it the
- Electric, do not care much prices are too high. That is,
about such standard. Con- when foreign [irms cannot
sequently, products of tor- win biddings because oE
~ eign tirms do not get into their high prices, the pro~
even procurement biddings. lem will be more com-
- NTT officials said those plicated than beEore."
U.S. tirms are somcwhat ar- NTT ~s planning to
rogant in their *easoning list more products tor
that since their products are international biddings and
well accepted in the. U.S., ~Ve all their equipment
NTT should accept them ac- piaced under such bidding
cording to U.S. standards. by December,1982. But even
An increasing number at aEter their proriucts are open
foreign firms have visited to tree competition, NTT
the NTT head office in W~~~ s~fer trom (resh prob~
Tokyo to sell their products, Iems in case toreign tirms
twt President Shinto told Wi~~ fail in one bidding atter
them, "If you like to sell to another because oI high
NTT, you shouid change w.~~,~, U~ess the funda-
- your products suited to me~~~ ~sue ot trade tric-
specifications-ot NTT. With- tions with the U.S. and Eu-
out such efforts, you just rope are solved, the NTT
cannot blame us Eor not P~~urement issue will al-
opening up our market Ways ~ vulnerable to at-
enough." tackstrom abcoad.
COPYRIGHT: 198~, the Nihon Keizai Shimbun, Inc.
CSO: 4120{124
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_ ECONOMIC
MITI STUDIES WAYS TO HELP AILING U.S. AUTO PRODUCER
Tokyo JAPAN ECONUMIC JOURNAL in English Vol 20, No 989, 19 Jan 82 pp 1, ~F
[ Te:c t ]
In compliance with a request MITI's planned help boils stocks as collateral.
made by 'the U.S. Government, down essentially to two points: MITI fe~ls that having Exim
the Ministry of International 1) how to assist the U.S. com�� bank and Mitsubishi Motors
Trade & Industry has buckled pany financially, and 2) how to cooperate in such financing will
~ down to study concretely what increase its competitiveness as se: ve to help Chrysler recover
sort of financial assistance, io- to sales in th~ American auto the credibility it has lost from
cluding financing by the Ex- market. private finaneial organs within
- port-lmport Bank of Japan, As to the first point, MITI is the U.S.
might be offered as cooperation considering ~ the passibility of However, as to buying back
lo help rehabilitate Chrysler having Exim bank extend Chrysler's stocks of 14itsubishi
Corp., now staggering in a tinancing, such as a bank loan Motors, it needs to be noted
- serious business crisis. or supplier's credit. Informanis that the U.S. automaker turned
The assistance steps being said that extension ~f supplier's dowa such a proposal when it
wei~hed by MITI are said to credit appeared to be the most was made by the,~apanese auto
include the following: promising as it could be applied producer at the end of 1880.
c~~~nin~ a way for the F.xim most ~readily in the event In autumn, last yeac, there
bank ~to extend help to lhe Mitsubishi Motors exports also was ~a reverse case af
ailing U.S. automaker through body and mechanical com- Chrysler ' asking Mitsubishi
Mitsubishi Motors Corp., which ponents to Chrysler. Motors to buy back :ts stocks
is tic~d up with Chrysler. In such a case, Mitsubishi but then quickly retrae:ing its
-Inducing Mitsubishi Motors Motors will shoulder the for- proposal.
to buy back its shares now held eign exchange risk, but tF~e As for Mitsubishi Motors, one
by Chrysler or of:ering the Government can back it up ot its top men said that if the
latter financing with the shares from the fact that it will be able scale of the financial help was
taken as collateral. to apply the export insurance small, it would not go very far
-Having Mitsubishi Motors system to the financing as it in promoting Chrysler's
undertake joint prodnction of will involve the Exim bank. rehabilitation, and from such
nEw mcxlels or further step up Another influential way for thinkinB, the company was not
technicAl cooperation for aiding Chrysler !s regarded inclined aeQively on its part in
restoring Chrysler's competi- to get Mitsubishi Motors to buy such a case to take up the
tiveness within the U.S. back its shares in Chtysler's problem.
_ MITI hopes that if such steps possession, or 15 per cent of the On'the other hand, Mitsubishi
are realized, this will amount to total, at the prevailing price Bank, the main ban7c of the
.lapan shouldering the Reagan within a scope of bekween Japanese automaker, said it
Administration's additional 5~~~.~ million, or having the was obvious thet it cauld not

- debl guarantee oi the U.S. ~apat~ese automaker extend ignore any possibility ot Chry-
aulomaker, and helping Chry- relief funds to Chrysler with the sler collapsing arld it would be
sler regaining its teel will serve ready to study ttte~ problem if
to prevenl a rekindling of the ~k~�
Japan-U.S. trade friction over
Japan's auto exports.
~
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t'rtridc~nt 'Cuiuio Kubu ut
Mitsubi5hi Motors said that as a ~
general problem, his company
= was not against helping the U.S.
_ firm, but that it wished to deter-
mine~ its altitude' tow~rd the
~~11�, .n ; n.:,
matter only after receiving a
concrete request from Chrysler.
_ It was possible, as a part af
technical cooperation, to con-
sider having Chrysler under-
take license production of
A1itsubishi Motors' cars, but
the priority now was for
Chrysler itself to rationalize its
production setup and smoothly
carry out a cost down, he said.
COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc.
- CSO: 4120/131
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~h~1{ ~rr~4in~ uyN UN1,Y
ECONOMIC
DOMESTIC AUTO SALES LAST YEAR SHOWED DIP, EXCLUDING MIDGETS
Tokyo JAPAN ~CONOMLC JUURNAL in English Vol 20, No 989, 19 Jan 82 p 7
[TextJ
Sales of new automobiles, ex- ~ier Eo 3,897,200 units.
cluding midget vehicles af less The 1981 re istraHons broke
- than 550 cc, in Japan last year down into 2;
O1,t56 passenger
_ dropped below the year-earlier cars, u 0.8 per cent, 1,173,147
level for the second year in a wcks, down 9.7 per cent, and .
row.
The Japan Automobile ~~897 buses, down 2.1 percent. _
Dealers Association said that When midget vehicles are ih
registrations of new passenger cluded, sales af new suta
- cars, trucks and buses cof mobiles in the year totaled
- more than 1,000 cc) in 1981 fell 5,127,009 units, up 2.2 per cent
by 2.6 per cent f rom a year ear- trom 1980.
1)omestir tiales o( ~ew� Autos (excluding midget vehicles)
in 1!Ittt b~� Maker
- (Yrto~Yr cAan9e in �e in parenthexs)
Oecember 19l1
- Maker Vassenqer car TrocM Bus Totel in 19l1
Tovole Motor . . . . . . . . . . . . . . . . . . . . V7.675 46.OB1 499 1.192.699 0.11
Nissen 01Mtor . 60,991 19,~VA 701 1,1~I,~17 2.s1
Mitsubishi Moton 17.lr8 l.911 2SA 727,SII (-10.!)
ToYO KoDYO . . . . . . . . . . . . . 41.415 7,~V9 16 ~}1~?71(- 0.l1
Isu:u Morors 5,1~9 7.971 270 119d75 l- 9.E)
MondeMOtor 46,610 1,790 - 117,W1+IZ.1)
Oalnatsu Mofor . . . . . . ~~MS l.~t/ - 71,516 (-7T.11
Fufi Heavv lndustries A~SO? 1,119 - S~.SSS 7.3)
Mino Mofors 2,179 116 ]~,~12t-17.51
Nissan Diesel Motor - 1.17~ 7~ �f-S2.])
Suiuki Motor . . . . . . - 6 -
Importedcars . . 7.]70 - - J1,110(-15.1)
~ COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc.
CSO: 4120/131
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ECONOMIC
FUJITSU TO CARRY OUT LARGE-SCALE CAPITAL INCREASE
Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 989, 19 Jan 82 p 9
[Text] '
Fujitsu, Ltd., Japan's biggest Fujitsu's coming capital io-
c�nmputer manufacturer, is go- crease will become its lhird as
inK to c�~~rrv out a large capital to procuring funds. The amount
inc�rea~c~ on a public subscri~ of its share issue will outstrip
tion basis, with payment set for the 70 million by Toyota and
the latter part of February. rank next to the 200 million
It will involve a total of 80 share issuance by Toshiba.
million shares - 50 million As to the capital increase on
shares domestically and 30 bil- the ~uropean market, it aR
lion shares in the form of Euro- pears that the oil-producing
pean Depository Receipt. In- countries will secure a coo-
- dications are that the money siderable amount of shares
procured will reach nearly ~F 60 through Nikko Securities Co.,
million. which will act as lead manager
In considering money, pro- of the capital increase ahare is-
curement by means of capital suance.
F increase, it stands to become a
capital increase ranking next in
scale to the Y 99 billion increase
I~v Tovota Motor Co. in July, ~
lasl vear ~ind the Y81.6 million
increase by Toshiba Corp. in
ti~~ptembc~r of the same year.
Eujitsu has been briskly
building up its facilities, ceo-
~orin~ on semiconductors, and
ii~ exp~~rt oP computers also
have started to become con-
spicuous I~~tely. Il is regarded
tu havr dccidcd on a capilal in-
crease in considering the need
for [urth~~r strengthening i~ti
financial position, such as for
c~ompeling against Internation-
~il liu~iness Machines Corp.
COPYRIGHT: 1982, the Nihon Ke~.zai Shimbun, Inc.
CSO: 4120/131
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ECONOMIC
TOYOTA, NISSAN TURN EFFORTS TO BOOSTING SMALL TRUCK EXPORTS
Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 989, 19 Jan 82 p 11
[Text] ~
Toyota Motor Co. and Nissan levels between Febnt ry and Japan's exports of small
Motor Co. have begun to step August ot last year, ~owever, trucks to the U.S. suffered a
up their etforts to export small hecause ot a rise in export of heavy . blow at the end of
trucks to the United Statea in small trucks~ total expoM to the August.1980 when the U.S. rais-
order to make up for the de- ~S�e~be~a$~t~~=~ 8~ i= ~chs ickuf
s from 4 c r
cent to
crease in the export of pas- Pt Y P Pe P P~ P~
senger cars to the country t~ cent over the correapoadin8 S per cent. As a result, sales of
sultirtg from "voluntary re- month of 1980. This was the Japanese trucks in the U.S.
straint" Japan started last first increase in eight montM market remained slugg~sh tot
year. trom January, ot 1981. Further- the tirst half of 1981.
Tha shift in export of small more, Nissan's export to the Beginning in the middle af
h they turt~ed
pickups has begun to take effect ~ a~~t~~ ~ u~~ e f~tct
e~rbett~ aschigh~~~
as the total export of cars and
trucks to the U.S. by Toyota record tor thai month, or up due to increased ta s no
- and Nissan began to increase ~�3 Per cent from the corre longer constituted a negative
last September and October, sponding month d the previo~ factor and aa sales eiforts, io-
exceeding the level of the cor- Yeaz� cluding incentive' payments to
~ responding nnonth af the Fre Toyota also marked a 3.3 per dealers. has begun to. take
vious year. cent increase in its export to effect.
- Due to shipment curtailments the U.S. last September ~ On the basis of these develo~
adopted by Japanese auto- over the conespondinQ inonth ments. Japanese automakers
makers, the export ot Toyota ~ 1~. the first increase in five stepped up their export drive in
and Nissan to the U.S. had coo- months, and further auQmented smaA trucks to the U.S. in an
tinued to be lower than the pre the export increase level to 8.8 effort to bring the total~ for
vious year's level up to last Per cent in October aver the Ciscal 1981 to tho pr'evio~s
AuKust corresponding month d 19~0. yeer's SOO,OOO le~'e1�
= In the case of Nissan, the
total number of cars and trucks
exported to the U.S. continued
lo i~c Inwer than year�earlicr
COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc.
- CSO: 4120/131
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ECONOMIC
BRIEFS
AUTO PARTS MISSION TO SPAIN--The Japan Auto Parts Industries Association is
scheduled to send a mission to Spain next May to confer with its local counter-
parts on how to cooperate with each other in the field of automotive parts and
components. This will be a follow-up to similar miseions so far dispatched to
South Korea and Canada to exchange information about parts business trends. In
April, 1980, Spanish parts makers sent a fact-finding team to Japan to probe the
"secret" of international competitiveness of Japan-built parts. Jaganese parts
builders hope ta have more contact with Spain which is due to ~oin the Europe?r_
Communities in 1985. [Text] [Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20,
No 989, 19 Jan 82 p 8] [COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc.]
NONTARIFF BARRIER REDUCTION--Prime Minister Zenko Suzuki wants to reduce or
improve the number of non-tariff barriers cited by the U.S. to Japan--51
~ instances--by over one half. Last week, he made this known at a meeting with
: the ruling Liberal Democratic Party's three top executives and Masumi Esaki,
chairman of the party's special study committee on international economic policy
' measures. The Prime Minister issued a directive to them that the Government and
its party swif t1y should work together to draft concrete steps on the following
~ points: Reduce or improve over half of the cited non-tariff barriers; adjust
views among the ministries and agencies concerned for reducing the number of items
on the residual import restriction list; grant Western enterprises which have
~ entered Japan the same business opportunities and benefits accorded by their
governments to Japanese enterprises in their country. In line with Suzuki's
i instruction, the party's special study committee on international economic policy
measures will have a meeting of its chairman and vice-chairman this week to work
out a final plan nn the matter for presentation to the Prime Miniater. [Text]
[Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 988, 12 Jan 82 p 1]
[COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc.]
TOYOTA AUTO PART IMPORTS--Toyota Motor Co. has announced a plan to procure ~26
billion worth of automotive parts and components in 1982 from ab road, 18.2 per
cent more than an estimated ~�22 billion in 1981. The planned imports for this
year will break down ~nto ~�15 billion worth of parts and ~�11 billion worth of
supplies and equipment. The estimar~d imports in 1981, consisting of ~�13 billion
worth of parts and ~�9 billion worth of supplies and equipment, represented a
37.5 per cent increase over the comparable imports in 1980. Of the 1981 imports,
North American products accounted for ~�12 billion. Besides, Toyota's American
- subsidiary, Toyota Motor Sales U.S.A., Inc., bought ~�28 billion worth of parts
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aua ~~aip~uc~ut:: truiu uaclvr. ~u~~ll~ra. '1'ti~ ~l28 billion tigure does not include
the purchases made by Toyota's local dealerships and Toyota Motor Manufacturing
U.S.A. engaged in production of truck cargo beds in Long Beach. A Toyota spokes-
man said that the company's imports and purchases from U.S. producers last year
accounted for a considerable share in the annual $300 million amount demanded by
the U.S. for Japanese automakers to buy U.S.-made parts and components. [Text]
[Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 988, 12 Jan 82 p 7]
[COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc.]
IRAQI VEHICLE PURCHASE--Toyota Motor Sales Co. and trader Sumitomo Corp. have
won an order from the Iraq Im~ort Corporation to supply 36,000 automobiles in
1982. The vehicles ordered break down into 135,000 1-ton pickup trucks, 6,500
small buses, 4,500 four-wheel drive vehicles, 1,500 2-ton pickup trucks and
10,000 subcompact cars. Iraq suggested in October, 1980 that the country might
suspend purchases from Toyota if the company tied up with Ford Mutor Co. listed
as an anti-Arab enterprise by the Arab nations' Israel-boycotting committee.
Toyota's sales talks with Iraq thus were stalled for some time in the first half
of last year. But Iraq resumed ordering from Toyota in December to buy 15,000
subcompact cars following the announcement of the company in July that it gave up
' the joint car-making plan with Ford. Sources took the preceding and latest Iraqi
orders as an indication that the moves of Arab na~ions to boycott Toyota cars
have tapered off. Iraq placed orders for automobiles with foreign producers in
August and September in usual years, but the prolonged Gulf War forced the coun-
try to act slowly this time. [Text] [Tokyo JAPAN ECONOMIC JOURNAL in English
Vol 20, No 988, 12 Jan 82 p 7] [CQPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc.]
CSO: 4120/124
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- SCIENCE AND TECHNOLOGY
~
INFORMATION PROCESSING, HITACHI TERMINAL SYSTEM DISCUSSED
Tokyo HITACHI HYORON in,Japanese Aug 81 pp 1-4
(Article by Airoyuki Osako]
[Text] In conjunction with quantitative growth and wider application of infor-
mation processing systems, the terminal equipment or system has recently under-
gone various changes. The terminal system, in other words, is assuming an
important role in the area of information processing, permeating to every p~r't of
institutions.
This paper will discuss these trends along with Hitachi's product development,
R&D philosophy and future trends in terms of technologies which support the
realization of terminal systems consistent with such trends.
I. Introduction
According to statistics compiled by MITI in FY-80, Japanese production of digi-
� tal electronic computer systems topped the remarkable 1-trillion-yen mark in
FY-79. This is 1,000 times greater than the 1-billion-yen performance of FY-60.
Among the increases, the proportion of terminal-related equipment, including
communications control systems, grew as much as 25 percent in FY-79, in contrast
to S.5 percent in 1965, when the "online system" was beginning to be commercial-
ized. This indicates a 330-fold production growth in simple comparative terms.
This ~rowth is largely due to liberalization of public telephone circuits and
reduction in c~mmunications cost through utilization of the DDX (digital data
exchange) network; however, the ma3or reason is the harmony between the reduc-
tion in total cost of information processing, including communications costs due
to the progress in semiconductor and magnetic memory technologies, and the devel-
opment of software technologies including complex online system controls.
Under these conditions, a significant recent trend in "network architec~ture" is
the polarization between intelligent terminals, which are moving toward all-pur-
pose and more sophisticated models, and terminals designed to exhaust their
;ipptication by limiting their usage to a certain degree.
Tn coping with these market trends, Hitachi has developed and marketed terminal
equipment with a wide range of applications. In this brief paper, however, I
wo~ild like to report on the development of products, particularly those in the
- front line of information processing, and the technological development support-
ing each of these products.
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II. Changes in Market Needs and Data Processing Systems
One characteristic of recent trends in information processing systems, in addi-
tion to that of substantiating management control, is a strong demand for the
system to function as a tool for upgrading working conditions and for providing
full service to customers. Accordingly, we see many cases in which the appli-
cation, control, and operation of a system are either partially or totally taken
out of the hands of specialists and put into the hands of the final users. This
tendency is particularly strong in regard to terminal equipment and terminal
systems.
This means that the circle of information processing systems has widened in terms
of space, quality, and quantity. Here we can see the birth of factors contribut-
ing to the realization of. such concepts as decentralized processing, network ar-
chitecture, and codeless information processing.
On the other hand, as seen in the cooperation among banks on matters of savings
operations and their coterminal centers and as seen in the establishment of
mutual communication "protocols" among chain stores and textile industries, data
communications among different industries or plans for proznotion of such coopera-
tion is being carried out.
With respect to information processing systems that can deal with these market
conditions, I provided details of decentralized processing and network architec-
ture in the May issue of this ~ournal under the title, "Recent Trends in the
~ Decentralized Processing System."1 Here,I would like to make observations{:aainly
from the standpoint of terminal equipment.
2.1 Meeting the Increase in the Volume of Information
In terms of both space and time, the manner of presenting information handled
through terminal equipment located in the vicinity of the source of information
has expanded from the conventional coded style to a codeless style; the contents
of presentation now include both fixed and nonfixed forms. Examples are infor-
mation expressed in terms of images, Japanese language, voices and shapes. In
comparison with fixed coded forms, such information requires a great deal of data
before it can be presented.
In order to proce~s a large amount of data efficiently within the time required,
improvement in th~ speed of transmission can only go so far. Therefore, a method
is needed to decentralize the processing as much as possible so that it can be
handled locally. For efficient exchange of data between sites, such a system
that usesthe coded information which has necessary aad sufficient data is neces-
sary to recognize the information being exchanged. In order to accomplish this,
both large capacity and high performance are required of either the terminal
equipment or its control system. This is gradually becoming a possibility within
an acceptable price range through the development of various technologies dis-
cussed in section III. Examples of this are the various types of terminal equip-
ment for the Japanese document information processing system, the shapL process--
_ ing system, and the document cantrol system.
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2.2 Meeting Diversified Uperational Needs
The major requirements for the terminal equipment cited above are reduction in
cost of the equipment itself and its operation, even greater adaptability to
business, and easy handling. In order to meet these requ~rements, it is indig-
pensable, while maintaining a low price, to diversify input-output methods,
strengthen support software, and facilitate operation. More precisely, the
following measures can be taken.
In terms of input and operation, in addition to various keyboards and key sets
for different usages, the OCR (optical character reading) hand reader and bar-
code reader, both of which can directly read data from the source, can be con-
nected, and the system which produces the necessary control codes through a one-
touch operation (code key function) can be improved. Also, an input check by
means of various displays and an operational guidance function are effective ways
to improve the operation of the equipment.
In programming the terminal equipment, adequate and simple language, and conver-
sational programming that require~ minimal learning, are effective. Furthermore,
program packages are being consolidated for standard operation.
On the other hand, in con~unction with popularization and more sophisticated util-
ization, increasing the system's overall rate of opf:ration is inevitable. In
order to do this, its reliabiliry undoubtedly must be improved and consideration
must be given to a backup system in ca~e of breakdowns.
The role of the backup system for terminal equipment is to prevent bringing
ordinary business operations to a halt, totally or temporarily, when the system
including the backup breaks down. A design that will make this possible requires
that it not only be suitable for operation of the entire system within a certain
- tolerance range but r_hat it also be accomplished at minimal cost.
In this respect, the system design based on the "store and forward" and "delayed
online" methods has been rated higher than designs based on conventional inethods.
- The popular decentralized processing system is considered an extension of this
concept.
2.3 Consideration for System Environment
In connection with the Popularization of data communications among various indus-
tries, the use and support of public data communications networks, such as public
circuits and DDX are now indispensable elements in terminal equipment. The same
applies to data communications within a single industry that has accompanied the
exPansion of DDX usable areas.
On the other hand, coordination with the software that controls the enti~e system
is critical, for unless various software assets, which require a great amount of
development expense and time, are sufficiently utilized, the system cannot become
- a useful tool. It is believed that software will control the information process-
_ ing system increasingly in the future, and that its full utilization will lead to
increasing the ~verall adaptability of the terminal equipment.
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Altiu, 1'rum thc at~in~lpuliit i~l mt~king the software s~tructure appllcable tu the
systems environments as much As possible, stratification of the software struc-
ture for the terminal equipment 3s being ~.:arr~ed out. This has been greatly
influenced by the strata structure sy~tem based on the concept called network
= architecture; however, this is a cechnology widely used as a means of comprehen-
sively improving the efficiency in the changing, maintenance, and prodsction of
software, even for terminal ea~lipcnent which is not directly subscribing to the
software.
In software which is developed on the basis of this concept, the functional
definition of each st?-atum and the specification of the boundaries between
strata are, in general, clearly unified. By combining existing modules that
comply with the def inition and specifications, or newly developed modules if
necessary, the software can easily support the system with a wide range of
applications. ~
III. Technologies That Support Texminal Equipment
The basic technologies invoived in terminal equipment are: printer, display,
keyboard, electronics, data communicati~ns, mountings to make the equipment
compact and light, handling of paper, and progra~ing. But what is important
- is not that these basic technologies be used independently in making the equip-
ment, but that they be comprehensively and systematically integrated to produce
equipment which can then serve its purpose. For example, the "Automated Machine
for Banks (ATM, CD Celler window equipment)," introduced in the special issue of
this publication, materialized only when these technologies were brought together
and the final product designed; it could be manufactured by combining individually
existing functional units.
Since the principal basic technologies have already been discussed in the special
issue under "Printer Technology," "Display Tectu~ology," "Making Terminal Equip-
ment Compact and Light," and "The Handling of Paper in the Printer Terminal,"
I want to summarize other technologies.
3.1 Use of Microprocessors
To control ti~e operation of terminal equipment at a rate faster than or just as
fast as the human senses can react, it is sufficient to use the consecutive con-
trol of a micraprocessor. For example, in 30 ms, which is said to be the limit
of the motion-recognition capacity of humans, a microprocessor with an average
command execution time of 2 Us can handle 15 x 103 steps of command. Even if
two-thirds of this, or 10 x 103 steps, is used exclusively for performing a
program which becomes the overhead for simultaneous movement, it is possible,
iL the operation moves at an average step number of 1 x 103, to control less
ttian five functions simultaneously.
Also, if higher performance is required, it is possible to install microproces-
- sors specially adapted to each functional unit. Even with this arrangement, the
cost ratio of the micraprocessor and its accessories to the total equipment is
- not large, and an allowable cost-performance ratio can be obtained.
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Un the other hand, specific microprocessors can be selected on the basis of the
performances and functions required. For instance,for those which are used as
single units and whose functions are relatively simple, such as printers, dis-
plays, and keyboards, 4-8 bit microprocessors are often used. For equipment
processing compound functions as a result of the combination of single units,
8-16 bit microprocessors can be used selecti~rely, either singly or in multiples,
depending on the required functian and performance.
- In view of the diversified functions of the terminal equipment, the use of micro-
processors plays an important role. In conventional equipment, using "hard
wired logic," changes in s~andard functions, the addition of different functions,
and changes in performance distribution for various functions would be likely to
necessitate modifications in the entire design of the equipment. However, equip-
ment with microprocessor control can accommedate the required functional changes
~:,.~i additions in a relatively short time either through the manufacturer changing
the program or thrcugh the user's prograimning.
- In addition, we are stri.ving to improve the efficiEncy of progra~ning. To meet
the sophistication i.n program language, the development of a"cross-compiler" by
means of large models is in progress; this will supplement a decline in efficiency
deriving from a lack of resources at the time of programming the microprocessor.
3.2 Mechatronics Technology
Mechatronics technology refers to the fusion of inechanical engineering and elec-
tronic engineering technologies. This technology owes a great deal to the utili-
zation of microprocessors, as mentioned in section 3.1. Its results are seen
clearJ.y in printers, keyboards, various inserters for printers, paper and plas-
tic and transport mechanisms, and in various automatic cash processors for cash
and for cash transactions.
This technology applies electronics to a large part of the mechanical controls
previously achieved by combining various mechanical functions. This simplifies
the complex mechanical parts and the mechanism comprised of these parts. In
addition to reducing the manufacturing cost and increasing reliability,�this
technology provides diverse functions not carried out by conventional terminal
equipment.
For example, let us consider the serial print~r. A matrix printer with a print~-
ing speed of 20 letters per second, TELETYPE model 37, for instance, was
formerly composed of several thousand mechanical parts. As against this, the
number of parts used in a"wire dot matrix printer" with a speed of 120-250
tetters per second is less than S00 at most. By electronir.ally con~.rolling the
X and Y directions of the printing head and the print wires, it is now possible
to handle various fonts, including Chinese characters, and print shapes, neither
of which could be done by conventional printers. In comparison with previous
printers, reliability has improved 20 times and manufacturing cost is dowr: by
more than 80 percent.
t3y us~ng mechatronics technology, similar improvements are being made to products
previously based only on mechanical engineering technology. This makes it pos-
s~ble to supply popular terminal equipment models where the installation and
maintenance environment ;ire not always good.
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3.3 Magnetic Memory Technology
The appearance of 8-inch floppy disk equipment drew a line between conventional
terminal equipment and new models, in that it added a filing function to the
tenninal and ma3e exchange of information more efficient. With this as a turn-
ing point, file equipment such as the S-inch floppy disk and the 5-inch and
8-inch hard disks was d~veloped. This improved the function and performance
- of the terminal equipment.
The floppy disk can be used widely as an internal filing device, but it also
plays an important role as an information exchange medium. For this purpose,
it is important that the information be handled by a memory system which has
mutual convertibility; however, even though it is technologically possible to
increase the memory capacity, the restrictions are great, so we cannot expect
muc}i in terms of achieving greater capacity. Rather, it will contribute to
~ popularization of terminal equipment if it can be made smaller and consume less
power.
The 8-inch or S-inch hard disks can be effectively used to make the file device
of the terminal faster and smaller and to increase its capacity. At present,
the 8-inch disk has a capacity for 10-100M bytes, the 5-inch disk, for 5-20
_ bytes; the average access time is 30 ms and 80 ms, respectively. But these hard
disks are most appropriate for terminal equipment because of their compactness
and low power consumption. The power consumption during normal operation is
100 W for the 8-inch disk, 20 W for the 5-inch disk, which is one-fifth to one-
twentieth of the consumption than that of the conventional 14-inch disk. The
- lower power consumption was made possible by minimizing the friction created
when a disk rotates and by improvements in high density m~nory technology which
provide needed memory capacity and at the same time permit the reduction of the
radius of the disk.
To obtain greater capacity while maintaining the compact size, the disk equipment
is so structured that the disk surface itself is fixed to the rotating axis of
the equipment. When operating a terminal with file equipment, it is itnportant
to consider a backup system to cover damage and file breakdowns caused by opera-
tional error. For smaller capacity equipment, a floppy disk is more desirable;
however, it is insufficient as a backup system for a f il.e whose capacity exceeds
tens of inegabytes. n�loppy disk with 1 M byL-e requires tens of sheets, and the
problem is the time required for backup operations rather than capacity. For
tliis purpose, an open reel-type magnetic tape device was used in the p~st;
_ however, its load is too great for the terminal equipment. Because of this,
recently a magnetic cartridge has been attracting attention. This device, al-
though there stiil remains the problem of canvertibility with conventional sys-
tems, is compact and is expected to achieve a memory capacity of 10-40 M bytes.
The magnetic bubble, which is theoretically different from the conventional mag-
netic memory system, has advantages in terms of resistance to adverse environ-
ment,particularly changes in temperature, a problem common to disk and tape
equipment. The magnetic bubble tolerates temperatures from -10 to 70�C. But
at present there are problems of capacity and cost, so it will take 2 to 3
years before it can be realized.
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3.4 Utl~er 'reclinolugteti
In connection with the above-mentioned utilization of microprocessors, the
' semiconductor technology for memory, LSI, and VLSI is important for terminal
equipment. In particular, a move toward higher integration of the memory
system is likely to become a factor in radically changing the economical dis-
tribution of functions of the equipment. For example, in the Chinese character
font, which is expressed by 24 x 24 bits, the character generator, which gener-
ates approximately 8,000 characters of JIS's No 2 standard, requires a memory
of about 5 M bits. To install this in a printer is impossible in terms of size
and cost. Therefore, it is more practical to cor.sider it in ca~on use with
- other equipment, install it within the file of the control mechanism, and design
it so that the portions necessary for operation can be extracted onto the main
memory device. But in the near future, when it is expected that a mask-type
read only memory of 128 kilobits or 256 kilobits per chip will be developed,
this character generator will appear with a 36-chip or 18-chip LSI, so that it
can be built into the prinrer. This will contribute greatly to the performance
of small-scale Chinese character systems.
In con~unction with the popularization of inechatronics technology, the role of
the power semiconductor must not be neglected. In this area, it will be possi-
ble to use highly integrated units as a result of utilization of p~wer MOS (metal
oxide semiconductor)-type FET (electric field efficiency transistor), which has
- good control efficiency.
Various input devices are needed for the terminal equipment. The operation of
most conventional keyboards has switched from a mechanically driven system to
electronics. In addition, new technologies such as keyset and CRT (cathode ray
tube) touch-keys along with image sensor based image input, voice recognition,
voice synthesizing, and voice output are being utilized in codeless devices.
IV. Development of Terminal System
The development of Hitachi's terminal system has been in the area of all-purpose
terminals, specialized terminals for specif ic purposes, and custom-made terminals.
For these terminals, Hitachi has been developing and strengthening a number of new
products in the p:~st 1-2 years: these include the HSTAC T-560/20 video data sys-
tem; HITAC L-320/30H and SOH terminal co~aputers; the HITAC T-550/30 decentralized
OCR; HITAC T-5862, T-5866, T-5869 automatic cash transaction systems; and the
HITAC T-580/10 parking terminal system.
In addition, respondl.ng to the market trends and needs as mentioned in section II,
Hitachi has developed new terminals by applying technologies discussed in section
IIT. The basic devel.opmental concepts of these terminals are as follows:
1) Data Pr.ocessing in the vicinity of data source.
2) The ability to make inputs with least amount of change in the original
form of data.
3) Easy operation even for nonspecialists.
4) Minimizing space, cost, and other factors in installing the terminal.
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= 5) Maintaining maximum convertibility with different terminals so as to allow
for maneuverability with future products or mixed operations with different
terminals .
6) Maintaining interchangeable character sets and a code system for them.
The development of new terminal equip~?ent in each of these areas of application
is as follows . .
4.1 Chinese Characters and Japanese Language Processing Terminal
For terminals which can be used exclusively for processing information in the
~ Japanese language, the following have been developed.
- 1) HT-5217 Chinese Character Printer Terminal. This is a terminal for process-
ing conversation, with English, numeral, and kana, the Japanese syllabary, inputs,
and Chinese cha-acter output; the output device is a thermal printer.
2) BW-20 Japanese Word Processor. This has diverse input methods which can
meet a wide range of demands; the output devices can be selected for various pur-
poses, f rom matrix printing type to dot matrix type.
In addition, in order to support the function of Japanese language processing
- for all-purpose terminal equipment, share-load type and stand-alone type systems2
are available for the HITAC T-560/20 and the HITAe L-320/30H and 50H respectively.
Since they can be used as they are for various functions of an all-purpose terminal,
they can be applied to establish comprehensive office automation in the future.
_ 4.2 Shape Processing Terminal
As a full-scale shape processing system, the HITAC G-710 and HITAC G--7303 are
available; furthermore, a shape processing function suitable for office process-
ing has been added to the HITAC T-560/20. Thjs function is reinforced when backed
by a printer which provides color displays and hard copies .
4.3 Terminals for Banking Institutions
As a general teller c~evice the HT-5821 and HT-5822 have been backed up by Chinese
character processing. The HT-5825 teller window device has been developed by
retaining the functions of these models but reducing the size so that it can
be used on the teller's desk. A"teller's cashier," which handles all currencies
- and types can be connected to this equipment as well.
In the area of automated equipment, HT-5862 automatic cash payment and HT-5866
and HT-5~369 automatic transaction equipment have been developed to meet a wide
range r~f needs. These items of equipment are installed with new mechanisms,
including "guidance" by CRT display and "offl~.ne" processing by a built-in floppy
disk. In addition, consideration has been given to ad~ustments in terms of in-
stallation, operation, and interphase, so that these items of equipment can pro-
vide a unified system for all cash transactions.
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4.4 A1.1-I'urp~~e 'i'~rmin~l Equipm~~it
For all-purpose terminal equipment, regarding c:hich the main objectives are
low price and popularization, the following products are available.
1) HT-5101 Telephone Terminal. This is a multipurpose terminal for public cir-
CL' CS whose data entry is diversified and which can be used as easily as a te:le-
phone.
2) HT-5455 Display Terminal. This is a CRT display te minal whose functions
and interphase are equivalent to those of the TELETYPE which is used exten-
sively for TSS (time sharing system) and other convPrsation-processing systems
and minicomputers.
These terminals are available not only as standard equipment but they can also
become a developmental base for individualized terminals for different businesses.
In addition, custom-made systems, using the resources developed in con,junction
with all-purpose systems such as the HITAC ?.-320/30H an3 T-560/20, are used in
- various areas; they are highly rated for their operational convertibility and
for their development within a short period of time.
V. Future Terminal Systems
Terminal systems are becoming popular and are being used in many areas; there
are, however, many problems to be solved and new technologies to be developed in
the future. Some of these are:
1) Popularization of t?igh-speed data transmission network using optical fiber.
2) Recognition and accumulation of image informa.tion.
3) Efficient processing of codeless information.
4) Making the system compact, lightweight, aru highly reliable.
But more important than these problems as a future issue is the matter of secur-
ity control. As the utilization of informa~ion processing systems expands, pre=
cautions must be taken against crime anu secrrcy must be maintained. The demand
w{.71 naturally arise for the addition of a function which can recognize lawful
- operators from unlawful ones. In addition, the popularization of decentralized
data ~rocessing will bring about decentral{zation of the files in the vicinity
of the terminal equipment or its control system. The ma~ority of the security
work in connection with a terminal system is related to thes e decentralized �iles.
A great deal will depend on developments in software rather than hardware.
?~urtliermore, in order to achieve even greater popularization, it is necessary
to develop portable high-performance tsrminal equipment. For this pur.pose, in
~ddition to compactness, light weight, and. low pawer consumption, it is important
C.o make software into firmware.
On the other hand, in terms of utilization of terminal equiprnent, the trend will
' still be toward polarization between all-purpose and specialized systems.
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From the standpoint of the former, realization of a multifunctional terminal
must be worked out. This does not mean providing what is essentially single-
funct~ion equipment with many applications, as in the case of conventional key-
- board displays and keyboard printers; it means connecting the terminal with
equipment with individualized functions such as OCR, various wand reader
, [phonetic] and keysets, and providing the appropriate software for various needs.
For example, the terminal OCR must be provided with functions in addition to
those available to conventional OCR, such as OCR with keyboard data entry,
- inquiry, and remote batch processing, and nuirerous other functions required when
- the terminal is seen abstractly as a data input system, or functions that may
em~rge from this.
In supplying these functions, it is desirable to have the system perform as con-
currently ~s possible those functions which can be realized by using resources
which do not interfere with one another during simultaneous operations.
Also, in the area of specialized terminals, it is believed that the populariza-
tion of the "full-turn key system" which most meets the user's demand will be
promoted even more. This trend will aid in establishing a bulk sales market,
supported as it is by a preference for cooperation among industries, as repre-
sented by the trend mentioned above of establishment of "protocols" common to
different industries., A terminal system suitable for this would be a packaged
product in which the advantages of both hardware and software have been incor-
. porated to the maximum.
It would seem inevitable to promote a system design based on special terminolo-
gies and customs which are used in business daily, and to provide products by
which mechanization will spread smoothly.
VI. Conclusion
I have approached the topic under discussion on the basis of existing products,
those being developed, and existing and future technologies.
On this and eight other articles in this special issue, I would appreciate it if
the reader would provide us with critique and guidance concerning Hitachi~s
product development discussed above.
REFERENCES
l. Ikeda, et al.: "Recent Trends in Decentralized Processing System," HITACHI
HYORON, No 63, pp 297-302 (1981-5).
~ 2. Ito, et al.: "Development of HITAC L-320/30H and SOH Systems," HITACHI
HYURON, No 63, pp 303-308 (1981-5).
- 3. Hayakawa et al.: "CAD/CAM Systems in Manufacturing Business," HITACHI
HYORON, No 61, pp 419-424 (1979-6).
COPYRIGHT: 1981 Hitachi Hyoronsha
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SCIENCE AND TECHNOLOGY
NEC'S VICE PRESIDENT DISCUSSES HOW TO LESSEN SEMICONDUCTOR TRADE FRICTIONS
Tokyo JAPAN ECONOMIC JOURNAL in English Vo 19, No 984, 8 Dec S1 pp 20, 15
[Text ] Nihon Keizai shimbun: What rate af "good products" against our producta at two-month-old
is your ouclook for technologica! the total? is rapidly improving pricea and still remain tn
competition between Japan and in the United States. If we competition L3Is are producfs
the United States? remain smug about the victory whose prices can come down
Ouchi: We may be ahead of the of Pearl iiarb6r, we may as yet 10-fold in a matter of-a-single
Americans in mass praduction face another tragedy of Mid- year. If we reduce our prices,
technologies of integrated cir- WaY� however, we ar~ liable to risk
cuits. The Americans, however, The flnal outcome of the "LSI dumping charg~s and have our
are by no means laggard`~n war" will not become clear ehipments etopped. We, ther~
high technologies as a whole. until about 1986 when the bona fore, have occasions to control
We feared that Japanese fide VISIs-256-kilobit RAMs our exports to the U.S. market.
makers' announcement that - made their debut. IBM is NKB: Which do you� think has
they were going to mass plaughing back some ~300 a greater Gompetitiv~'edge in
produce 64-kxlobit random billion RdcD futtds per~ annum patented technologies - Japan
access memory (RAM) chips, into VISIs and other high tectr or the United StptesT
the first-generation of very nology fields. Ouchi: Although Japan and the
larg~scale Integrated Clrcuits NKS: Now wi!! the price war Utlited Stetes ace just about
cVLSIs), would unduly provdce between ~apan and the Untted equally matehed in teeh-
the Americans. We heaved a 5tatea jare? ~ nological etandards~ Japan is
sigh of relief when we found Ouchi: The price of. a 84K paying more in patent
that there is no great tech- RAM, which stood at about;]AO royalties. Our own company is
- nological differences in this at the Gme of experimental mastly trading technologies
- field between Japanese makers delivery a year ago, has now with U.S. firms on a mutual ex-
and their U.S. counterparts. come down to only about E10 change basis. Some U.S.
- The strong superiority of and is bound to decline further. patents, however, have be~n
Japan's mass production tectr Price competition in the U.S. acquited by petroleum com-
nologies primarily comes from market is certain to intensify. panies, and we naturally
the fact that Japanese semi� The definite disadvantage for cannot obtain such patents on
- conductor makers placed extra us in the fierce price war is the a cross-licensingbasis. We have
emphasis on automatization of existence of the U.S. trade law. to pay cash for such patents afid
their own domestic plants, According to the law, Japanese our payment excess in the
while their Western counter- makers have to sell their prod- patent field will continue for
p~~rts depended on Asian labor ucts in the U.S. market at the some time.
for assembly work. The use of prices which prevailed in the Technologica] development is
nutomatic assembly machines Japanese market two month breathtakingly swift in the field
nol only givcs extra yuality and p~�eviously. The rationale is of semiconductora. Our own
rcliability to the end products that U.S. diatributora will carry company is investing some ~ 40
but also help~ reduce produc- two months' inventories. `fhe billion in new equipment in the
tion cost~5 by minimizing bad trouble is that we cannot sell current fiscal year. Equip~
products, ments are as good as new after
Complacency on our part, three ~yeacs of use. We have to
however, is totaliy un- scrap them, ,however, or we
warrnnteci. The yield rate (the will lose out to our competitors.
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We, therefore, try to recover absolute superiority in the field build truly integrated semi-
the invested amount in the first of ICs and computers etc. from conductor plants. This is the
two years, turn a profit in the the national security point of reason we have to limit our
third year and use the profit for view. It must be pointed out plant establishment in specified
re-investment in newer clearly here that there is a con- areas in advanced countries.
facilities. To use a metaphor, siderable difference between We are now actively advancing
we are a i�unner in an endless production for the military and into the United States and
marathon race. that for the civilian use� European countries, while such
NKS: Aren't U.S. manuJac- Makers of military products U.S. companies as Texas
turers having chest pains in are liable to take their con- Instruments and Motorola are
their ruthtess marathon race tracts for granted. If makeTS of llow rapidly bolstering their
~with their Jupanese rivals7 civilian products sllow them- mapufacturing bases in Japan.
ouchi: Independent U.S. semi- selves such a luxurious illusion If such mutual entries in each
conductor makers having only and take it easy, they w'11 other's ~ountry inerease, it will
several hundred workers on immediately lase their clients. greatly help reduce trade fria
their payrolls are beginning to If U.S. makers, which have tions, as no one can pin down
have management troubles, it long depended on military the blame on any single party.
is true, and they are putting production, really want to NKS: Will technologtcal
themselves up for sale. Our make themselves stronger, transfer thrive7
own company has purchased they should try to shed their Ouchi: Some say that estaf}
Electronic Arrays Inc., a protectionist armor. lishment of wholly-owned
specialist semiconductor NKS: The Americans are plants will not promote tech-
manufacturer in the Silicon claiming that Japaneae aemi� nological transfer. I do not
Valley, while Siemens of West conductor makers are ahutting agcee with this opinion. TeCh-
Germany has acquired another out U.S. products a8 they are nological transfer can be
s e m i c o n d u c t o r m a k e r, concurrently engaged in pro� gteatly speeded up by plant
Advanced Micro Devices, Inc. duction of comput�rs.. . entries. When we bought at
Philips of the Netherlands, on Ouchi: The claim is simply uit qmerican company, we invited '
the other hand, has bought into founded. As there are many S~ne of the company's eo-
Signetics, while Schlumberger, thousands of ICs with different ~neers to Japan and trained
_ an oil prospecting company oi properties, it is aimply u~co- t~em at our Kyushu~ plank
France, has purchased Fair� nomical to engage in produo- Several of the Americans since
child. tion of all of them. American were taken over by other U.S.
NKS: The Americans are manufacturers boast oi u~r ~mpanies as quality control
criticizing as unjair Go~ern- rivalled competitive edge in experts. We are now. planninB
nii~nt subsidies and research many ICs. I belleve that Texas. ~t~liah a plant in Scotland
unions etc. Japanese manufac- Instruments Japan Ltd., a and reeruit h1uldTeds uf et1-
turers are enjoying.. . wholly-owned subsidiary of ~~~rs in the host cou~ry.
Quchi: There are moves in the Texas Instruments Inc., know ~me of such local engineers
United States for the Federal much more about our comy ~ certain to move to other
Government to guarantee loans Pa~Y's computer sales than our after working with
to semiconductor manufactw- company's semiconductor divf- ~.for a while. Such movements
ers - a welcome development. sion. will greatly promote teclr
European governments are NKS: Do you think that Japan iqlogical tranafer in hoet coun~
already providing subsidies to and the United States wtlt be tries.
LSI makers "following Japads able ~to eliminate trade fric- W~~nn
r~
le~fieldlofptughl~teetr
example. In the United States, tions.
the Department of Defense is Ouchi: I think that e3tablistr nologies. As technological
axtending a helping hand in ment of manufacturing plants developmeat is exceptionally
development of very high- in each other's markets will go brisk in the Seld, even sli~t
_ speed ICs, called VHSI, a long way to tone down fric- delays in c~clsion-making in
What we fear most is the : ise tions. The trouble is that we e9uipment investmec~ts etc.
of p~otectionism in the United cannot simply establish our will lead to disastrous end For
States. We are strongly o~r plants just anywhere. For such quick ciecision, we have to
posed to the protectionist belief production of such sophisti- be lndependent when we go to
among the Americans that the cated commodities as semicoo- o~~' and establlsh
United States should have ductors, we need a pretty high manufacturing plants. Some of
industrial basis. Ii we cannot the technicians we recrult and
buy special gases and chemical nain oere oareecertacoun m 6e
etc. nearby, we won't be able to
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promoting technological trans-
fer. We may suffer a bit from
such development, it is true,
but not much as we are certain
to develop new technologies
and commodities on our own
The source of all evils is to try
- to adamantly protect one's own
technoiogies.
COPYRIGHT: i9a1, The Nihon Keizai Shimbun, Inc.
CSO: 4120/129
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SCIENCE AND TECHNOLOGY
ORGANIZATION OF DAIKYO OIL COMPANY VIEWED
- Tokyo NIHON KEIZAI in Japanese 21 Dec 81 p 8
[Text] "Suspend, at any rate, the manufacturing of steel plates for crude oil
tanks." This was the directive given ihe procurement department by President
Yoshiro Nakayama (67) at the beginning of June, this year. The project for the
construction of a crude oil depot with a capacity of 800,000 kiloliters in a
zone contiguous *o the Yokkaichi Oil Refinery had already been started, with a .
ceremony of purifying the building site held in April. J~ist after the end of
the consecutive holidays in May, however, shipments of products fell to an
abnormally low level. Also, the yen rate on the foreign exchange market was
falling at an increasing tempo. So, it taas necessary for the company to study,
for some time, whether it should continue this pro~ect as scheduled.
Liaison Conference of Executives Is Theater for Free Discussion
The liaison conference of executives, which conference is held on the morning
of every Tuesday, became a theater of fierce controversies for some time there-
after. The subjects of controversies were such as whether the present decline
in demand is only temporary and what prospect it is possible to establish for the
demand for crud~ oil tanks in the country as a whole in the future. In the ~
meantime, the downward trend of the yen rate made unexpected progress, to reach
the level of ~�230 to $1 in the end. Crude oil prices, which must be paid in yen,
rose drastically and the deficit in the company's account swelled rapidly.
"All plans for the construction of depots should be frozen, with the exception
of liquefied petroleum gas (LPG) tanks." This was the final decision made by
President Nakayama in early August, after deliberations at the meeting of execu-
tive directors (held in the afternoon of every Tuesday). Although resistance
was offefed by those concerned with the work of construction in the field, it
was dangerous for the company to invest a sum of ~�%0 billion in total in con-
struction pro~ects under the circumstances prevailing at that time. Fortunately,
the manufacturing of steel plates for tanks had been suspended just before enter-
ing the process of rolling. So, it was necessary for the company to pay only
- several hundred million yen to the construction enterprises concerned in compen-
sation for the freezing of the construction projects.
The president does not attend the liaison conference of executives, so that "the
participants can speak as they like" (President Naka~'ama). This conference,
which is presided over by Vice President Hiroto Sumiyoshi (59), is a theater
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for the exchange of information concerning the details of everyday business
and discussions on various problems including tihe strategy of the company.
On the morning of every Thursday, a"tea party" is held with the participation
of Chairman Hirotaka Mitsuda (74), President Nakayama, Vice President Sumiyoshi
and Managing Director Satoshi Kobayashi (60), who has jurisdiction over the
technological field. This party, too, does not take up any specific problems
for discussion. It can be seen, therefore, that free discussions are held at
two different stages, to provide a"lubricant" for this company.
However, the dominant view is that it is President Nakayama who is the most
effective "lubricant" for the company. President Nakayama is a man of open-
hearted character, as can be seen from therepresentative.view that he is a man
who "can hold heart-to-heart talks with everybody" (Chairman Mitsuda). Because
of such a character, both those within the company and outsiders are favorably
disposed toward him.
He has an established reputation as a man who controls his special agents most
firmly in oil industry circles. Within the Petroleum Association of Japan, too,
he has become an important candidate for the chairmanship on every occasion of
- change of the chairman, because his ability as mediator is appreciated within
this organization whose members harbor "different speculations." Also, Chairman
Mitsuda turned over the post of president, in which he had served for a little
more than 15 years, to Nakayama, because he placed expectation on such an ability
of Nakayama.
The four members of the "tea party" are assisted by eight executive directors.
There is the impression that this company has too many executive directors for
its scale. The reason is that President Nakayama decided to "clarify the loca-
tion of responsibility in every department."
With Executive Director Keizo Suemasa (60), who is in charge of planning, at the
top, the company has such executive directors as Shigeo Homma (62) who is
director of the Yokkaichi Oil Refinery, Koichi Tsutsumishita (56) who is in
charge of supply and transportation, Takaaki Makino (58) who is in charge of
procurement, calculation control and environmental problems, Katsuji Saito (54)
wh oi.s in charge of crude oil and youngest of all executive directors, Hiroshi
Harayama (55) who is in charge o� general and personnel affairs, Shota Kikuchi
(58) who has the exclusive jurisdiction over the f ield of business, and Hisashi
'I'anaka (59) who is in charge of accounting.
Cxchange Between Groups of Part-Time Executives
The executive staff is characterized by the existence of six part-time direc-
tors. In late June this year, Daikyo Oil offered the post of part-time direc-
tor to four executives of Asia Oil (head office: Tokyo; President: Ryutaro
Hasegawa; capital: ~�7,50(~ million), including President Hasegawa (72). An ex-
change of personnel took place between the two because Daikyo Oil established
its control over Asia Oil by ~ts acquisition of 48.7 percent of the total shares
of t}iis oil company.
~
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1~;~ { kv.~ U i l sc�ut t~~ l:i U l.l, 'l'akri::i~ l~;r K i Caudti (bU) (now a part-tiwc dlr~clur) ,
wtio was the senior executive director at that time and who had a reputation as
a top theorist within the company, and Tatsuji Takanashi (53) (now a part-ti.me
- director) who was the director in charge of technology. These two executives
of Daikyo Oil took the post of managing director and that of director, respec-
tively, in Asia Oil. At the same time, five executives of Daikyo Oil--Mitsuda,
Nakayama Sumiyoshi, Tsutsumishita, and Kikuchi--became part-time directors of
Asia Oil. Especially, Kitsuda took charge of demand and supply (production
plans and distribution of products), which can be regarded as a key department
for any oil campany, to serve as a bridge between the two oil companies.
It may be unnatural, in the light of the logic of capital, that an exchange of
executive personnel is carried out, on a nearly equal footing, between two com-
panies, one of which isvirtually in control of the management of the other.
This step was taken, however, from the standpoint that "the two companies should
unite together, as early as possible, to form a group in the true meaning of the
word, instead of making use of their own strength" (President Nakayama). About
6 months have passed since the exchange of executive personnel was started, and
this exchange has begun to produce such an effact as follows: "The special
quality of the business information from Daikyo Oil, which is the seller of
crude oil, and that of the technological information from Asia Oil, which is a
refining enterprise, have begun to be connected together" (Vice President
Sumiyoshi).
The biggest purpose of Daikyo Oil's acquisition of 48.7 percent of the total
shares of Asia Oil at the request of Mitsubishi Chemical ~ndustries was to im-
prove the efficiency of the refining department. Daikyo Oil has only one oil
- refinery (Yokkaichi), but Asia 011 has three (Hakodate, Yokohama, and Sakaide),
including those of its subsidiaries. Moreover, Asia Oil has facilities to
handle crude oil of inferior quality, including the apparatus for direct desul-
furization, while the Yokkaichi Oil Refinery handles mainly gasoline and other
kinds of light crude oil. Besides, it was attractive for Daikyo Oil that Asia
Oil maintained a long-term crude oil supp~.y contract with Mobil Oil.
It is dif�icult for any one oil refinery to improve its production efficiency
independently beyond a certain limit. Also, the weight of heavy oil in Japan's
crude oil imports has been increasing, year by year. The f irst purpose of Daikyo
Oil's acquisition of Asia Oil shares was to break such a stalemate.
With tlie transfer oE shares, Asia Oil deserted the group led by Kyodo Oil. In
late September this year,however, Asia Oil concluded with Kyodo Oil a contract,
- whereby "the delivery ofproducts will continue as before for 5 years to come."
~ llaikyo Oil, too, emphasizes that "We do not intend to increase our market share
unnecessarily" (Preside~tt Nakayama).
'fhe market share of Daikyo Oil is 5.7 percent (recorded in 1980), but the share
of the Daikyo group in regard to ref ining capacity is 8.25 percent. So, the
so-called reverse refining-sales gap is about 2.5 points. Daikyo Oil, there-
fore, will be burdened with excessive facilities for a long time to come, even
if it makes effective efforts for the combined operation of crude oil tankers
and the proper distribution of refining work.
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Even under the 3-year management plan (1982 through 1984) which is in the making
at present, "It must be expected that demand will remain rather stationary
- throughout the 3 years" (Executive Director Suemasa). Excessive co~npetition for
the expansion of sales will only increase the blow already dealt this company by
the losses amounting to ~28.8 billion, which losses were recorded on the occasion
of the interim settlement of accounts as of the end of September.
Sumiyoshi Is Likely To Take Next PresidE.zcy
If we want to foresee the future of the Daikyo group, we must keep watch on the
� Japan Industrial Bank, which is the ma~or bank connected with Daikyo Oil. At
one time, Daikyo Oil had three executives hailing from this bank. At present,
how~ver, only Chairman Mitsuda and Vice President Sumiyoshi are the executives
who came from this bank. The Industrial Bank played a leading role in Daikyo
Oil's acquisition of Asia Oil shares. It also served as an intermediary in the
establishment of business tie-up between Daikyo Oil and Fu31 Kosan, which tie-
up has produced such effects as unification of asphalt sales departments since
1979.
These past circumstances provide an important foundation for the prevailing
view that Daikyo Oil is the eye of the movea for the reorganization of oil in-
dustry circles. At this time when the necessity of reorganization of oil indus�-
try circles is advocated, not a few people think that it is a matter of time
that the Industrial Bank and Daikyo Oil will r_ake a new step to strengthen the
Daikyo group. With consideration for such a possibility, it is proper to think
that the next presidency will go to Sumiyoshi.
Conditions for Being President
President Yoshiro Nakayama says as follows: An ordi~ary person is desirable
for the post of president. It is very good to have a president who belongs to
~ the elite. However, a person with strong elite consciousness is not acceptable.
It is important for the president to ~oin the members of his company and wall~:
together with them. The post of president is not an honor at all. It is a try-
ing post. This post must be buttressed by the trust of the members of the company
in their president. There is no reason to think that the president can win the
trust of Che members of his company, without assimilation with their feeling.
"Nevertheless, the primary mission of the president is to display leadership.
I think that it is most desirable for the president to make decisions, on the
basis of future prospects and the present situation combined together at such a
ratio as seven to three. Any person, who is induced to make immediate gains,
must be qualified as president. Especially in oil industry circles, where the
circumstances concerning crude oil and foreign exchange are changing too rapidLy,
it is most terrible to lose sight of the general situation."
Daikyo Oil
Number of Executives: 25 (including two auditors).
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Average Age of Executives: 3 are gr:iduates of Tokyo Univeraity; 2--Tokyo
Institute of Technology; 2--Hitotsubashi University; 3--other national uni-
versities; 3--Waseda University; 4--other private universities; 4--higher
technological and commercial schools; and 4--other schools.
Terms of Off ice Held by Presidents: Ei~i Saito--3 years and 3 months; Masao
Takahsshi--17 years and 1 month; Hirotaka Mitsuda--15 years and 7 m~nths; and
Yoshiro Nakayama--from August, 1975 to the present.
Remuneration for Executives: Regular payments--~�228 million, and bonuses--
~30 million. '
Annual Income for President: ~�35,040,000 (according to his final income tax
return for 1980) .
COPYRIGHT: Nihon Keizai Shimbunsha 1981
CSO: 4106/38
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SCIENCE AND TECHNOLOGY
COAL IMPORTS FROM SOVIET UNION DELAYED
Tokyo YOMIURI SHIMBUN in Japanese 25 Dec 81 p 9
[TextJ It became certain on the 24th that coking coal exports from the Soviet
Union to Japan for the current fiscal year will be far below the annual tonnage
of the 1 million tons which the Soviet Union guarantees. This is because the
coal received from April through November was 545,000 tons, which tonnage is
only half of the target quantity. Consequently, a Japanese steel industry
source says that "We cannot expect additional receipt, henceforth, either."
The S~viet Union has promised to export 1 million tons as collateral for the
bank loan provided by Japari in connection with the development of South Yakut
coal mines. Because the matter is incorporated in the Government-to-Government
~ agreement between Japan and the Soviet Union, it seems that this sharp decrease
will leave problems in the future. .
I It is viewed that the sudden decrease in the shipment of Soviet coal to Japan
I has been affected by the fact that the Soviet production of coal has not neces-
i sarily been smooth and that the annua~ supply of 10 million tons of Polish coal
to be shipped to the Soviet Union has almost stopped due to the unstable politi-
cal situation in Poland.
Soviet coal exports to Japan increased approximately to 2.5 million tons per year
during the peak period of S or 6 years ago. However, exports have been on the
gradual decrease since then. Nevertheless, 1.74 million tons and 1.85 mi2lion
tons of coal were exported to Japan during fiscal 1979 and fiscal 1980, respec-
tively. Thus, the Soviet Union maintained a fairly good level, being a str.ong
supplier after the United States, Australia and Canada.
However, the situation completely changed during the current fiscal year, as
Soviet coal exports to Japan sharply dropped. Negotiations for the current f is-
- cal year on Soviet coal exports to Japan between the steel industry and the
Soviet Union were delayed more greatly than usual. They reached an agreement
finally in early September. The contents of the agreement are that (1) Shipments
from April through December will be from 700,000 tons to 750,000 tons (including
quantities carried forward from the previous year), and (2) consultations will be
held once again as to shipments from January through March, next year. Thus, the
Soviet Union was to strive for .the aim of reaching the 1-million-ton level, anyway.
- The fact that there are no prospects for January-March shipments, next year,
blocks the attainment of the 1 million tons. Consequently, a person in the
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~taal in.iu~[r~� in .:~~ar~,e ~i .:~~kici~ .:~al foresees that "1-mil.lion tons is hope-
less. We wonder if the tonnage will be substantially below that." The Soviet
side has recently made representations, saying "If we end up not attaining the
target, we want to move the target forward beyond April, next year. Thus, the
Polish situation is affecting Japan in the form of a decrease i n the shipment of
Soviet coal to Japan.
As Japan imports approximately 70 million tans oz coking coal, the decrease in
_ Soviet coal imports does not directly affect Japan~s iron and steel production.
Because of the sluggish economies at home and abroad, the production of iron and
steel is falling. As a result, there tends to be leftover coking coal. However,
it means the Soviet side's "breaking its promise" that coking coal, which is
collateral for the repayment of the loan on the development of Yakut coal mines,
is not supplied smoothly. Consequently, measures to be taken by Japan are to
- be noted.
COPYRIGHT: Yomiuri Shimbunsha 1981
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SCIENCE AND TECHNOLOGY
FINANCE MINISTER, MITI DISCUSS RELIEF OF ALUMINUM INDUSTRY
Tokyo ASAHI SHIMBUN in Japanese 25 Dec 81 p 9
(,TextJ According to what was clarified by a source concerned on the 24th,
how to spend the balance (about ~4,300 million, including the interest of some
~�500 million) of the funds for dispoeing of excessive facilities, which funds
had been pooled through the ingot tariff allocatian system for fiscal 1978 an3
- ~979, for the relief of the aluminum-refining industry, was decided upon through
consultations between the Finance Ministry and MITI. ~
This breaks down into the following: (1) About ~1 billion for the latter half
of fiscal 1980, as scheduled, as partial aid in expenses for disposal, and
about ~2 billion for fiscal 1981, by extending the time for granting by 1 year,
in regard to the facilities which were discarded or frozen when the annual
facilities capacity was reduced from 1,64 million tons to 1 million ton through-
! out the~industry circles; (2) about ~�500 million, which is equivalen~ to the
interest, will be spent for research and development in industry circles of a
refining method under which much electric power is not used, inc~luding the blast
furnace method; and (3) the remaining funds, amounting to some ~�1,300 million,
will be returned to the Treasury.
Under the tariff allocation system in the past, unlike the tariff exemption sys-
tem which is to be carried out for 3 qears from f iscal 1982, the tariff rate of
9 percent was reduced to 5.5 percent in fiscal 1978 and to 4.5 percent in fiscal
1979, with the :iecessary volume of imports as an object. At the same time, an
amount with an equivalent of 0.25 percent deducted, in the amount of reduction
of the tariff burden, was contributed by ingot importers, and it was distr~.bLted
- l: UNL,Y
SCIENCE AND TECHNOLOGY
EPDC, TVA OF U.S. AGREE ON TECHNICAL EXCHANGES
Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 988, 12 Jan 82 p 6
[Text]
Electric F'ower Development fired power plants. TVA,~ ho~wever, is more ad-
Co: and Tennessee VaDley Au- The fluidized-bed coal com- vanced in large plant know-
thority will sign a technical co- bustion developed by EPDC h^W, already developing and
operative agreement in Fel~ E~atures curbed output d r~.::~ic~' 1.3 million kilowatt
ruary. nit;~qen oxides and compact cls:~:. ~~lants fired by coal.
The two government-con- coal D:~lers. Air is blown from EPI: i_ >'rying to construct a 1
trolled organizations will ini- a boiler :nttom into the bed milli~r : kilowatt class plant
tially swap technical know-how with limestone as ,pulverized after ~~erting up two 500,000
on coal-fired power plants, in- coal is fed alao to the bed. TVq kilowatt generators - the larg-
cluding generation and trans- is constructing a similar ex- est of ita kind in Japan - at the
mission. Eventually, they may perimental plant, while EPDC Matsushima works early in
expand mutual cooperation to' started up ita test plant at ib 198I�
include hydrcelectric and high- Wakamatsu station in July, Both EPDC and TVA started
voltage electricity transmis- 1981. their power biisiness by hydro-
sion. Besidee, EPDC's flue gas electric plants. They are ex-
TVA is interested in obtain- treatment technology is said to pected to probe possibilities af.
ing EPDC's caeil know-how, ~ more advauced than TVA's mutual assiatance in this area,
such as fluidized-bed coal com- be~~e af the more atringent too. Further cooperation was
bustion, ftue gas treatment and anti-pollution regulations in Ja- likely to involve higlrvoltage
coal ash utilization. EPDC, on ~n. The Tokyo company is direct-currency transmission,
. its part, wants to induct tech- trying to develop know-how for fuel battery and solar energy.
nical know-how on construction fertilizer production from coal Like TVA, EPDC'generates
and running large-scaled coai- ~h~ _ something that inter- p~wer primarily for wholesale
- ested TVA. The U.S. organiza- without directly servicing end
tion produces p..^wer as well as uaers.
fertilizets.
COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc.
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SCIENCE AND TECHNOLOGY
n
FIVE POWER UTILITIES TO HELP MHI DEVELOP APWR TYPE REACTOR
Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 989, 19 Jan 82 p 5
[Text]
Kansai Electric Power Co. cast totsling ~F 10 billion. ~
and four other utilities have In additon, the Bechtel Group
agreed with Mitsubishi Heavy and Mitsubishi Electric Corp.
Industries, Ltd., (MHI) to and others in the Mifsubiahi
financially help the reactor ~oup, also pledged to join the
maker's advanced pressurized project to improve the pres-
water reactor (APWR) project. surized water reactors. Some
MHI and its PWR partners conatruction companies, which
intend to complete APWR undertake civil engineering
deslgn by 1984 so that they can ~ Wo~k at reector rltee,' vdt]1' ~
start construction oi commer- participate by the .end of thia
cial APWRs in 1987. year. �
The project will cast an esti- The project is almed at im-
mated ~ 33 billion. Of the total,
~E 10 billion each wiil be put up Pr~~ng reactor reliabllity and
by MHI and the five electric fuel economy. The latter will be
utilities - Kansai, Shikoku, made poBaible by lxtrning plu-
Kyushu and Hokkaido`Electric tonium, as generaEed in a reac-
Companies as well as Japan tor. The goal is to redure enrich- ,
Atomic Power Co. - and ~fe ~ uranium consumptlon by 25
~ billion by Westinghouse Elec- Per cent.
tric Corp. The remaining ~f 5 In the fall of 1981, Tokyo
bitlion is expected to be sutr Electric Power Co., other utili-
sidized by the Ministry of Inter- ties and two boiling water
national Trade & Industry. reactor makers - Hitachi Ltd.
The utilities, led .by Kansai and Toshiba Corp. - started
Electric Power, are discussing joint efforts for advanced
- how they should share their BWRs.
COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc.
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SCIENCE AND TECHNOLOGY
NTT'S DATA DIVISION MAY BE MADE PRIVATE COMPANY
Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 989, 19 Jan 82 pp 1, 4
[Article by Ichiro Kifune]
[Text]
Nippon Telegraph & Tel~ siun is severed from NTT, the placed on a self-paying basis
phone Public Corp. ( NTT), separate firm's operation will for the following reasons:
which is Japan's domestic tele- bE~ limited to a data com- -The corporation's aata
communicalions services municatlons facilities serviee communications services have
- monopoly, is cantemplating competitive with the'"~'ta8te greater advantages than pri-
- separating its data com- data communications industry, vate enterprises in that NTT it-
munications division as an such as the science & tech- self holds the circuits and the
entirely private, Eelf-sustai~~ing nology cpmputation service corporation does not have to
enterprise. This was disclosed cDEMOS-E) and the 'sales pay the corporate tax.
last Thursday for the firsl inventory service (DRESS) -The data,~tomcnunication
time by ils president, Hisashi which NTT has created by servicss constitute a burden to
Shinto. He declared at a press using its communications NTT's finances, and this should
' conference, "Separation seems circuits and is offering to `~eMbr'~e~ered with`~Yti~v~nii~`~
to be the best way tor ukilizing general enterprises. derived trom its telephone and
NTT's technologies for � fur- NTT inten~ to retain tor other profitable fields.
thering data communications." il.self the~ service of offering its -It is preferable to have the
The Second Ad Hoc Commis- ci~�cuits to private parties and data communieations division
siun on Administrative Retorm also the simultaneous tele- compete on the same basis with
now is studying the possibility phone, tacsimile and data com- private enterprises in order to
of changing NTT lo a semi-gov- munications system, dubbed enhance its technologies to
crnmenlal "special corpora- INS, which it is now developing boost product~vity.
tion" similar to Japan Air tor inauguratioe in the 21st ceo- The Government's Adminis-
Lines Co. and Kokusai Desn- tury, trative Management Agency
shin Denwa Co., which mono- Uata communications are recommended strongly in
polizes Japan's overseas tele- one ot the principal services July, last year that the data
communications services. offered by NTT's data com- communications d:vision
Signs thus are lhat the munications divi~ion along with should be made financially selt-
problem of altcring NTT's data tetephone, telegraph and leased sustaining and streamlined.
. communic;ations division to a ci~�cuits. The corporation's data Amid such circumstances,
private basis, together with the cc~mmunications service in opinion also increased within
issue of modifying the present fisca! t980 recorded a deficit of the Government in favor of
- rY~:~na~;erial structure of the ~ 10.9 billion, and its [acilities having NTT becoming a
corporation itself, is going to service in particular ran u~ a private enterprise, and the
- have major repercussions on rcd of ~F 43.9 billion. commission studying adminis-
privatc industrial fields in the Up to now there have been
future. v~~ices that NTT's data com-
flowever, evcn in the event munications division should be
lhe data communicatiuns divi-
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trative reform said then in its
first report that it was going to
study the issue from such a
viewpoint.
NTT itself worked out three
possible plans to change its
- managerial structure. They
- were:
-It should be converted to a
special corporation like JAL
and $DD, set up jointly with
government and private funds.
-Or NTT should be made a
completely privately managed
joint stock company like Ame-
rican Telephone & 'Celegraph ~
Co.
_ ~-Or NTT should keep its
managerial form of being a
governanent corporatio~ but, �
legally, shouid be [reed from
budgetary restraint and be less
bound by necessity ta secure
approval cor~stantly for new ~
projects.
_ The corporation shortly is
going to submit the three plans
to the administrative refarm
commission for study.
NTT thus hopes to have its
data communications division
cut ofF and set up as a private,
self-paying enterprise. For
swiftly erasing the deficit of its
data ~ommu~rications division,
NTT is intending to do away
with five centers of its sales
inventory service and slash its
personnel by about 1,000 per-
sons.
However, it is generally fslt
, thal in ordcr to set up the data
section as an entirely private
company, NTT inevitably will
have to undertake a radical
review of its present mana-
gcrial structure.
COPYRIGHT: 1982, the Nxh~n Keizai Shimbun, Inc.
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F'OR OF'F!C'IAI, ll~t~: ()NI,Y
- SCIENCE AND TECHNOLOGY
~
GENE RECOMBINATION TEST GUIDELINE TO BE AL'rERED
Tokyo JAPAN ECONO,IIC JOURNAL in English Vol Z0, No 989, 19 Jan 82 pp 1, 4
[Text]
- 'I'wo official standards to According to ine Ministry, been unnecessarily strict in the
unsure thc safety of gene the interim recommendation light of all sorts oF gene recom-
recom~inalion experiments in will be proceduraUy repl8ced bination researches realized
the country in force since 1979 shortly with the tinal one, and both in Japan and abroad since
are expected to be radically the council will process it into 1979. Such apprehensions have
rclaxed to about the same level its own ultimate revision plan come to be considered too
as their equivalents of the U.S. for the guideline after con- exaggerated or imaginary.
and other advanced Western sulting all schools and The equivalent situation in
- countries by May. acadetnj,c institutions with America is quite different
They are an experiment general engineering resear- because there are not 'only a
~uideline made public by jhe ches. But the Ministry already similar experiment guideline
Ministry of Education in March visualizes acceptance of the but arrother closely related
197'), and an almost ider.ticai, plan and hopes to p^oclaim its safety guideline concerning the
- guideline establi~hed by the relaxed guideline by the sec~ond handling of disease-causing
Prime Minister in August of the week of May. microorganisms, and thus,
same year. According to sourczs close to there is even a rising call in the
Kespectively applied to the Stience & Technology U.S. for abolition ot at least the
universities and nther Agency, the Science and Tech- experimenG guideline. But
~cad~mic research faciliti~ nology Council ot the Prime Japan has no disease-causing
under the Education Ministry's Minister's Office will quickly ni^roorganism handling guide-
jurisdiction, and all national, review the Prime Minister's line, which poses a certain
public and private research guideline to match the Educa- problem with the pr^spective
t;: ~ilitics under the Science and tion Ministry's relaxation, and relaxation. The it?terim recom-
Terhnolo~y Agency's jurisdic- the Prime Minister's guide- mendation has offered an
~ion, the two standards are su line's similar easing could be answer by suggesting some
clnsely r~~latc~d with cach othcr mcide pubiic almast simultane- new mandatory rule that such
thal nm~ hi{~ r~~visiun of cith~r i~ ously. dangerous microorganisms, if
- certain to lea~ a correspund- The Education '.Vlinistry says to be used for gene recombina-
in~; chan~;~~ nf the olhc~r. the interim recommendation tion tests, should be pent up by
With th~~ P:ducation Minis- was to the effect that the Mio- adopting the National Institute
try's Kuidelinc, lhe Itea~m- istry's original guid~line based of Heal:h's internal study
binant llNA ~ deoxyribonucleic on its Science Counci!'s initial control standard concerned.
acid~ Experiment Gui~ieline ~ipprehension about maximum Anyway, the existing rigid
- h:xamination Subcommittee of ~c~ssibil;ties of artifical creation standard re~uiring very elosely
- the Mini~try's Science Council i~f unkr:flwn species af living sealed study facilities, known
.ast we~~k came up wilh an Ihin~s, especially new danger- as the P(Physicall 4 and P3
ir.terim r,~commendation ou~diseaseca~~sin~microorgan- class, even in comk~ining
- calling (ur such radical relaxa- ism,, if not tne science-fiction- human genes with colitorm
tion of thc Min~str~'~, guideline. style chimera ur monsters, has bacillus genes, will be eased
~
78
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_ respectively to the P3 and P2
class, almost the same as the
conventional microorganism
experiment laboratories. Ob-
serven "looked forward to
the relaxation's effects of
having a new impetus on
Japan's entire gene recombina-
tion researches, especially
industrial attempts to mzke the
most of gene recombination
' technology. ~
COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc.
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N'UR OFFI('IA1. USI? ONL.Y
SCIENCE AND TECHNOLOGY
INDONESIA BROWN COAL MAY BE UTILIZED FOR Ir1ETHANOL
Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 988, 12 Jan 82 p 6
[Text]
The Ministry of International use of Sumitomo Metal's
Trade & Industry will under- gasification technique
take a methanol feasibility featuring blowing pulvecized
study jointly with In~nnesia in coal and oxygen into molten
fiscal 1982. The Jakarta iron. The steelmaker plans to
Government already has develop a gasification plant
agreed in principle that the two based on the technique with
countries will jointly . utilize daily capacity of 1,500 tons. The
_ brown coal in southern Suma- gas can be converted into
tra for methanol production, methanol by existing, proven
_ with a part of the gasified coal technology like the prceess of
likely to be consumed for fer- Lurgi, West Germany..
tilizer production. Several ideas were submitted
- The basic agreement was to Indonesia by the Japanese
relayed to MITI via a fact- team, including consumption of
finding mission organized by ~oductione gAt f Palembang,
the Institute of Energy Eco- Indonesia runs a fertilizer com-
~ nomics, Sumitomo Metal plex, where ammonia and urea
Industries, Ltd. (which has the are , produced. Another idea
gasification technology) and centered on gas utilization for '
Mitsubishi Corp. po~yer generation.
Southern Sumatra has brown The team estimated that
roal deposits totaling an brown coal totaling 5,830,000
~ estimated 15 billion tons, in- tens a year can be consumed
_ cluding 435 million tons in the for methanol production to the
Bangko area alone, as earlier tune of 1.6 million tons and
found by the Roys? Dutch Shell ammonia for ~ily output of 840
Group. The coal resources, tons as well as running e
- however, have not been 500,000 kilowatt power plant.
developed until now because of On its part, the Indonesian
the high ( about 3s per cent) Government expects that the
moisture content. Such a"wet" new industrialization program
coal is generally expensive to wili contribute to dispersing its
carry. population from Jawa (with 70
The Japanese team proposed per cent of its total population).
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SCIENCE AND TECHNOLOGY '
HITACHI, GENERAL MOTORS TO DEVELOP CAR ELECTRONIC CONTROL SYSTEM
T~kyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 988, 12 Jan 82 p 7
[Text]
Nitachi Ltd. of Tokyo, one ot mobile electronic parts to GM Japan's leading sutomakers.
Japan's top-rated electric and because Hitachi wii! be chiefly As regorted, the prospective
electronic equipment and com- in charge of the future micro- Hitachi-GM tie~up will be so
pu!er makers, will shortly start computer-built-in electronic extensive it will encompass not
full-scale cooperation with control systems of all GM cars. only all types of engine control
General Motors Corp: . of the it will be all the more signifl- jobs based upon driving cir-
U.S, in jointly developing cant as Hitachi has recently cumstances; but alsa all other
microcomputer-involving elec- launched a joint "microcom� electronicatly controlled auto-
tronic control systems for GM's puter-equipped car" research mated car functions.
small, fuel-etficient passenger and development venture with Domestically, Hitachi has
car series to he produced in lsuzu Motors Ltd. and 3uzuki long been closely cooperating
future, it was recently learned. Motor Co,, both middle-rated with Nissan Motor Co. in elec-
According to sources close to Japanese automobiFe com- tronic automation of the lat-
- Hitachi, a blanket contract for panies financially affiliated ter's cars. Last June, Hitachi
such a technological tie~up on an with GM .as members of GM's also supplied Isuzu with its
i equal, reciprocal basis will be global family of automakers. microcomputerized engine con-
concluded shortly between Hi- Hitachi would thus be one of trol system for the latter's
tachi an~ GM's Delco Division the direct participants as GM's Piazza series of small cars, the
in cha:^be of electrical equi~ new ally in the latter's drive first of Isuzu's electronically-
ment for all GM vehicles. . toward its victory in the engine controlled vehicles.
The tie-up will be naturally current "small car war" Isuzu is said to have learned
quite difEerent from Hitachi's among all the world's suto- some of the GM technology
past export supplies of auto- mobile industries, including involved ttirough ordering this
system irom Hitachi.
COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc.
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N()R ()NFI('IA1, t)51~: ()NI,Y
_ SCIENCE AND TECHNOLOGY
RACE BEGINS TO DEVELOP SERVO VALVE FOR ROBOT
Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 988; 12 Jan 82 p 8
[Text] Japan's major industrial hydraulic machinery and robot makers have started
a new technologic~l race to develop robot-operating hydraulic servo valves.
At least three such companies--Kayaba Industry Co., Kawasaki Heavy Industries, Ltd.
and Tokyo Keiki Co.--are engaged in the race with such intensity as to attract
wide ar_tention of U.S. and European hydraulic mac'::.ine makers and technological
mentors of Japan's hydraulic machine industry. Until recently, there had been
only imported va'_ves of the kind on the Japanese market.
Kayaba has recently come up with its own MK-II servo valve of electronic- ~
hydraulic type, on which it had started a research and development project at the
~ end of last year jointly with a machinery and equipment technological research
gr.oup of Irlitsubishi Heavy Industries, Ltd.
The new servo valve, with a built-in high-output motor working its control revolu-
tion axis, is said to have few troubles due to clogging by dusts contained in its
hydraulic oil and at least twice as responsive to electric signals as the imports.
Its development had been ~hanced by the need for a specially precise valve to
build into steel rolling plant labor saving and various experimental machinery.
Japan's top robot maker, Kawasalci Heavy Industry (KHI), has developed its own KS
Valve to apply to the robots it has been producing under a technological license
granted by ifiimation Inc. of the U.S.
The KS Valve is said to have brought an inquiry from Unimation itself for its
1 good performances. KHI plans to apply the valve to all of its future robot pro-
ductions.
- Tokyo Keiki has emerged with its own Digital Valve, an improved version of the
- conventional robot electronic-hydraulic mechanism with the Iatter's analog con-
verter replaced with a pulse-code driving circuitry to make a built-in micro-
computer directly control the hydraulic circuits through digital signals. f~om-
mercialization of the price of imported equivslents is planned, starting early
next year.
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~OR ONFIC'IAi, 11~F: nN1,Y
SCIENCE AND TECHNOLOGY
TOSHIBA FREEZES ORIGINAL PLAN TO MASS PROi~UCE 64K RAM CHIPS
Tokyo JAPAN ~:CONOMIC JOURNAL in English Vol 20, No 988, 12 Jan 82 p 9
[Text]
Amid the intensi(ying com- turers, both on a wor'ldwide monthly, while Hitachi and
petition among Japanese semi- scale, industrial sources here Mitsubishi Electric Corp. ao-
- conductor manufacturers to believe. ticipate monthly production of 1
boost their pro~uction capacity Mass production of 64K million and 500,000 chips, re
of very large-scale integrated RAMs, the first-generation spectively. A year ago, the pro-
circuits (VLSIs), Toshiba product o( VLSis, began only duction rate oi each ot these
Corp., currently the third larg- last year. Success in this field companies was only several
est ~rcxiucer here, has frozen . is believed to be indispensable tens of thousands a month.
its plan to mass produce 64- for manulacturers to s�rvive in It is believed tfiat Toshiba's
kilobit random access memory the future and as a step up to tailure in startup marketing
(RAM) chips. Instead of io- the second generation, 256-kilo- competition of 64K RAMs is be
creasing its capacity ot 64K bit RAMs. Hitachi, Ltd. ao- ' hind the decision to freeze its
RAMs from its current monthly nounced last December it plan calling for increased capi-
output of 100,000-mintLS units to would begin mass production tal spending. Toshiba and NEC
300,000 units in next March as it as early as next autumn ot 256K have a joint `computer
has earlier planned, Toshiba RAMs; which have a four times sales/software development
will procure a certain pere~eo- larger memory capacity than business under MinisUy ot
tage of the chips to be used in ~e gqK. International `Trade & Ind~try
its small computer lines Irom In a bid lo secure as large a guidance. .
Nippon Electric Co., the top share as possible of the market "This does not mean we are
maker. and to benefit from large scale withdrawing fro^? the VLSI
Upon settlement c3 detailed production, Japanese manufac- field. We are developing more
discussions now underway be- turers have started increasing competitive, special types of
tween Toshiba and NEC, the their production ~apacity one 64K RAMs and other VLSIs,
lattcr will probably start sup~ after another. By the end of which we could start marketing
plying Toshiba 64K F~AMs be- next March, NEC expects to be this autumn," a top executive
ginning next month at the ear- turning out 1.05 million chips of Toshiba said.
liest, initially by around '30,000
units on a spot basis.
Toshiba's pianned procur~
ment of f,~K RAM chips reilects
a coRSiderable change in its
mc~dium-ran~e strategy toward
- the semiconductor business,
~~nd could affect future market
share among the manufac-
COPXRIGHT: 1982, the Nihon Keizai Shimbun, Ir~c.
CSO: 4120/124
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1~OR OH'!~I('lA1. UtiN: ONI,Y
SCIENCE AND TECHNOLOGY
NAGAOKA UNIVERSITY SUCCESSFUL IN ION BEAM THERMONUCLEAR FUSIONS
Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 988, 12 Jan 82 p 17
[Text ]
The Technological University The other is a more recently as many as 8,000 tests to create
oC Nagaoka, Niigata Prefec- developed way, an inertial ion beams. The team thus has
ture, recently reported a series pen-up type, to put such "fuels" succeeded in creating such
of remarkable successes in in a small spherical reactor beams of at least 50 nano-sec-
creating high-speed and high- and make the fuels explode by onds in beam pulse width and in
energy beams of ions of hy- some powerful energy bom- 1 million electron volts fuel ac-
drogen, boron and carbon for bardment, and~ caus4 ~the celeration ~lectric pressure
causing thermonuclear fu~ions. wanted very hot plasm9 condi- ~s~eed), using not only hydro-
tior~ by utilizing the force of gen, but also boron and carbon.
The university's Etigo-I ex- com~r~sion occurring in reac- In the necessary narrowing
perimenlal facility to create tion to the force of explosion. down of the beam, increasing of
such ion beams, Japan's first The new way is best de- its current density and ensur-
full-fledged device of the kind veloped in the U.S., where an ance of effective transmission
completed at the end of 1980, actual nuclear fusion trial by of the beam to the target, the
is intended for starting a nu- ~at way is said scheduled by team has succeeded in reduc-
clear fusion reaction phenom~ lggs. ing the beam's diameter from
non in a small test spherical According to the university, 12 centimeters to S millimeters,
reactor less than 1 millimeter in Etigo-i facility, built ac- raising the beam's electric deo-
diameter packed with deu- cording to the new ineriial sity from 50 amperes/square
terium and tritium, multi- ~n-up principle, is a cylin- centimeter to 10 kila
molecul:ir types of hydrogen as drizal affair lying on one side amp~~/square centimeter,
�'fuel," by bombarding the two and measuring 11 meten long, about 200 times higher, attain-
it.rms in the reactor w~th strong ~.5 meters high, and its ion ing about SO per cent in the
ion beams. beam generator inside is also a beam lransmittability. ~
7'he nuclear tusion lype o[ cylinder of 5 meters in length The team is contmuing to re-
energy creation, one of the two and 2.5 meters in diameter. fine its achievements toward a
ideal sun-like energy genera- A pair of concave mirror- target of 1C million electron
lion sought by all the world's style ion generating source of volts in electric pressure for
nuclear e~nergy researchers, 12 centimeters in diameter in the earliest possible start of Ja-
' ruu~;hly divide into two kinds. the heart of the double cylinder pan's own nuclear fusion trials.
l)ne o( them is to pen up such emits ion beams through Eilm-
fuels in a strong magnetic [ield inq of some kind of fuel when a
as an extremcly hot and dense st, ong electric preasure ie a~
plasma ~ electronically sepaeat- plied to it. During the past one-
~~i cnndition as to their mole- year period, the university's
cul~~s and atomsi. research team has carried out
COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc.
CSO: 4120/124
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SCIENCE AND TECHNOLOGY
FUJITSU FANUC COOPERATES WITH TATUNG ON ROBOT MARKETING
Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 989, 19 Jan 82 p 8
[Text ]
h ujitsu h'anuc Ltd. has 7'he 7':~iwanese enterprise,
reached basic agreement with basecf in Taipei, is a con-
'!'aiwan's Tatung Engineering glumerate en~aged in a variety
t'o. to tie up un sales of indus- of business lines, including
Irial rolwls. eleclronics, cumputers, com-
Undcr thc arrangement, lhe ' muuications equipment, heavy
'I'aiwanese compa~~y will be eI~~:U�ical machinery, and iron
gr~nted the exclusive right tu and steel. The company recent-
sell all kinds of F'ujilsu h'anuc's ly puts a stress on machine
rubols in 'l'aiw~n uver tl?e next tuols and other machinery sec:-
seven years. The top-rate Japa- lors. Il also shows a strong xeal
nese robot develuper now tu branch oul inlo the rottot
- mdnu[actures handling robots field. .
for machine tools equipped
with numerical control device,
assembly robots for machincry
~wrls, and otl~er high efFiciency
rubuts.
F ujilsu N unuc I'resident
ticieman Inab;~ will Cly to Taipei
a~?un tu fornialirc lhe basic ac-
curd. In~~lx~ said Ihc sales lic~up
n?.iy develop inlu a broader
li?~k, inrluding pruduclion
skills. il''I'aluu~ wishes to do so.
COPYRi.CIiT: 1982, the Nihon Keizai Shimbun, Inc.
CSO: 4120/131
ffi
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FOR OFFICIAI. USE ONI,Y
SCIENCE AND TECHNOLOGY
YAMAHA TO ENTER INTO AIRCRAFT ENGINE FIELD
Tokyo JAPAN ECONOMIC JOURNAL in English Vol 20, No 989, 19 Jan 82 p 8
- (Text]
Y~in~ha Mutor Co., one of tws becn aspiring tur such a
.lapau's largesl mulorcycle business diversification, be~
makers, is venluring inlo the cause of Its disadvantage ot
aircra[t engine indusiry lhis t~eing a motorcycle and engin~
year as its new business making specialisl, compared
diversification step. wilh tt~mda's successiul motor-
[t already had obtained the cycle and automobile business
- permission of the Ministry o[ lines.
lntertwtional Trade & Industry The company of Iwata,
[ur doing so under the Aircraft Shizuoka Pref. will be lt~e
Production Enterprises Law. fourtti Japanese air engine
Sources close lu lhe company producer under the !aw afler
said that in [iscal 198'l, starting Ishikawajima-fiarima Heavy
- n~xl April, Yamaha will Industries Co., Kawasaki
produce and deliver to the Heavy Industries, Ltd. and
I>etense Agency several pistun Mitsubishi Heavy Industries,
cngin;:s for drones, that is, un� l.td.
n~anned targcl planes, tor th~ Bul lhe sources ~aid MITI
'�Shurl 5AM" (shurt-range plans lo guide Yamaha Molor's
gr~iund to~uir missiles) of the develupmenl bs an air engine
(;ruuud S~If�I)efense F'urcc. maker in such a way as lo
~~~1~~. c~,m~ny is planning to makc a sp~.~:ial kind ot air en-
IKUId ils Fwsition ~n 1hc indus ginc manufactur~r aparl from
try, sl;~rtinb wilh such targ~~t tl~c cstablished Uiu on lhe basis
~,lane cu6ine pruclu~~lion. ot Yamaha Motur's experience
, '1'i~uugh lung fiercely c~~n~~ ancl skills in aUt~imotive engine
~ting with ilu~eda Mulor Cu., produclion. M1TI hardly lhin{es
lhc wc>rld's lur6est muturcyclc lhc con~~~ny is yualificd at
maker u( Japan, buth on Ihe pr~sent to participale in uny
domestic and uvcrsws nu?I:,r- internalional joint air engine
i~ycle u~arkels, Yanu~ha Mutor development venture.
COPYRIGHT: 1982, the Nihon Keizai Shimbun, Inc.
CSO: 4120/131
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~
SCIENCE AIvD TECHNOLOGY
MINISTRIES DIFFER AS HOW TO REVISE DATA CO1rIlrIUNICATIONS LAWS
' Tokyo JAPAN ECONOMIC JOURNAL in English Vol ~D, No 989, 19 Jan 82 p 9
[Text )
The Ministry of International The argum~nts ot both min- nomic Organizations), the Ad-
Trade & Industry and the Min- istries hinge on the following ministrative Management
istry of Posts & Telecommuni- two points: 1) Whether a new Agency and the Fair Trade
cations (MPT) are at odc~s over !aw as demanded. by M~T is. Commission have been in favor
revision of laws related to data ~~ecessary tor the libe'ral{zation of the MITI opinion. The in-
communications whose lib of leased lines; 2) Whether pro- terim report of the Spcond Ad
eralization or open use Aas tection of users of data com- Hoc Commission on Admirf
been strongly demanded by the municatior~. circuits should be istrative Reform also has de-
_ United States and Japan's busi- achieved by legal means as manded extensive liberaliza-
ness community. argued by .the Posts & Tele- tion of data communications
Both ministries have had communications Ministry or be circuits, following clasely tt~e
eight sessions of negotiations entirely left to op~n competi- MITI argument.
over revision of data communi- tson among users, as MITI con- ~rthermore, the U.S. hes
cations laws since mid-Decem- recently demanded a complete
ber, last year, but their views On these two points, the two liberalization of data communi-
still are wide apart and seem ministries completely ~differ. cations circuifs on the grounds
di[ticult to be bridged in the MITI is all-out to admit to a ~t the'~egal revis~Qn of the
near future. MPT demands that maximum de~ee the particl� Posts & Teleaommtlhications
a new law, tentatively named pation of private fi~�ma in data Minist:y excludes the partici-
"Data Communications Law," communications except for pation of foreign capital in Ja-
~ must be mapped out and such main businesses as tele- Pan'g data communications,
enacted, while MITI argues phone and telegcam services thereby likely to become an-
revision of the present Public handled by NTT, but MPT other source of economic fric-
Telecommunications Law is argues that the business of pri- tion between the4tvo countries.
adequate to cope with the situa- vate firms in data communica- Spurred by all these factors
~;~n tions field rr?ust be checked to MITI had recently adopted tac-
Data communicaiions cir- protect users. Behind these tics ot filibustering to stop the
cui~s in Japan have been widelY-changing views lies the plan of the Posts d~ Telecom-
monopolized by the govero- fact of bureaucratic "jawbon- munications Ministry and has
mental Nippon Telegraph & ing" between the two minis- heen demanding complete lil>
'fclephone Public Corp. (NTT), tries in an attempt to place eral?.zation of data communica-
but MITI and the business com- under their respective control tions circuits through the re.~i-
munity have long been criticiz- the data communications in- sion of existing laws. Fa~ed
inK that such a monopoly dustry which is expected to with this, the MPT plan has hit
hin~iers progress of data cam- make gigantic progcese in the a stumbling bloek. ,
- munications, and have been de- coming decade. All bills must be submitted to
manding "liberalization in Up until now, all reports or the current Ordinary Diet ses-
~~rinciple" of joint use of leased recommendations made by sion by inid-March for passage.
i~n~~s by privatc businesses. Keidanren (Federalion ot Eco-
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rvx ~arit,i,~?~ w~. ulv~~
But if the currenl deadlock con-
tinues, it will be extremely dif-
ficult for both ministries to
come to terms over the matter.
Chances are likely that revised
bills might just cover those
areas where both ministries
have found the agreemerit, b~
ing tar from fhe complete li~
eralization of data communica-
lions circuits aimed at the Fie-
ginning of negoliations. In this
sense, observers said, even if
both ministries ha.ve come to
agreement on some areas for
the time being, complete li~
eralization ot data communica-
tions is very likely to be post-
poned.
COPYRIGHT: 1982, t:~e Nihon Keizai Shimbun, Inc.
CSO: 4].20/131
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SCIENCE AND TECHNOLOGY -
TORAY TO COMMERCIALIZE 'STRONGEST' FINE CERAMIC
Tokyo Jt~PAN ECONOMIC JOURNAL in English Vol 20, No 989, 19 Jan 82 p 17
[Text]
Toray Industries, Ltd. re- yttrium, while Zirconia is a
cently disclosed intention to kind of zirconium oxide de-
commercialize the new fine veloped by the company itself.)
ceramic it ha.s developed and Its new engineering ceramic
coniirmed as being the strong- hes attained anywhere between
est of its sort so far made in the 150 and 170 kilograms per
world. square millimeter in bending
7 The leading multi�business strength, far surpassing the
Japanese synthetic fiber maker hitherto known world record of
will start test production of its 130 kgs. per square millimeter
new ceramic by around 5une at for such materials, the com-
an experimental plant tu be pany said.
built within its Shiga tactory In addition, its new product
complex in Otsu City near has proved to be so tenacious
Kyoto. and free from the inherent brit-
The company said the ~f 500 tleness of ceramics as to defy
ordinary hammering, let alone
million plant for producing high resistance to heat attd
several hundred kilograms of chemicals and high moldabil-
the fine ceramic will perform ~~y
all sorts ot tess to develop So far, the company has used
many different applicabiliti~ ~W product as an aocygen
- of the ceramic and set the stage ~~~ty sensor for its o~q+ ion
for iull co.*.~mercialization c~t' conductivity and also tried it
the ceramic in about tive yea: tor making k~3~~es by making
The company explained its the most its p: ysical proper-
new engineering ceramic is es- ~ips. But the company viaual-
sentially a 3 per cent yttria- izes many more uaes d the new
added and sintered version of pruducts, including ~t'oduction
7.irconia. (Yttria is an oxide of of clectronic parts and indus�
triel cutting edges.
COPYRICHT: 1982, the Nihon Keizai Shi~bun, Inc.
CSO: 412G!131 END
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