JPRS ID: 10582 JAPAN REPORT

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APPROVED FOR RELEASE: 2447/02/09: CIA-RDP82-44850R444544474428-9 = FOR OFFICIAL USE ONLY - JPRS L/10582 11 June 1982 - ~ = J~ ~n Re or~ ~ p ~ - (FOUO 34/82) _ ~g~S FOREIGN BROADCAST INFORM~TION SERVI~E - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500070028-9 NOTE JPRS publications contain information primarily from foreign - newspapers, periodicals a.nd books, but also from news agency transmissions and broadcasts. Materials from foreign-language � snurces are traaslated; those from English-language sources are transcribed or reprinted, with the original phrasing and - other characteristics retained. Headlines, editorial reports, and material enclosed in brackets [J are supplied by .JPRS. Processing indicators such as [Text] or [ExcerptJ in the first line of each item, or following the last line of a brief, indicate how the original information was processed. Where no processing indicator is given, the infor- mation was summarized or extracted. Unfamiliar names rendered phonetically or transliterated are _ enclosed in parenttieses. Words or names pre~eded by a ques- tion mark and enclosed in pa.rentheses were nor, clear in the original but have been supplied as appropriate in context. Other unattributed parenthetical notes with in the body of an item originate with the source. Times within ~.tems are as given by source. - The contents of this publication in no way repres~nt the poli- _ cies, views or at.titudes of the U.S. GovernmQnt. COPYRIGH'.~ LAWS AND REGULA,TIONS GOVERNING OWNERSHIP OF ; MATERIALS REPROD'JCED HEREIN REC~UIRE THAT DISSEMINATION - OF THIS PUBLICATION BE RESTRICTED FOR O~FICIAL USE ONLY. APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007102/09: CIA-RDP82-00850R000500070028-9 FOR OFFICiAL USE ONLY JPRS L/10582 11 June 1982 ~ ~ _j . y~ i ~ JAPAN REPORT ~ - (FOUO 34/82) - CONTENTS - POLITICAL AND SOCIOLOGICAL Prime Minister Suzuki's Relationship with LDP Hawks Examined - (ASAHI SHIMBUN, 16 Apr 82) 1 Possibility of Fukuda's Bid for Power Discussed . (YOMIURI SHIMBUN, 11 Apr 82) 5 Nakasone's Dilemma Described ~Kenji Kitahara; T~iE DAILY YOMIURI, 8 May 82) 8 - Nakasone Faction's Role Analyzed ~ (Tetsuo Tamura; THE J~pAN ECONOMIC JOURNAL, 18 May 82) 9 Changed Nature of Labor Spring Offensive Analyzed (NIHON KEIZAI SHIMBUN, 16, 17, 18 Apr 82) 10 Handling of ~'-4 Phantom Issue Criticized (Shintaro Ishihara; BUNGEI SHUNJU, May 2) 17 SCIENCE AND TECHNOLOGY Government, Private, Academic Biotechnology Effort~ Reported - (NIHON KOGYO SHIMBUN, 10 Feb 82) 32 - DNA Experiment Guideline, H. Sai~o Interview - Four Applications of Biotechnology Active Enterprises in Western Japan Mounting Interests, Expectations ' - a - [III - ASIA - 111 FOUO] FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R000540070028-9 FOR 6FF'[CiAL USE ONLY = POLITICAL AND SOCIOL(3GICAL PRIME MINISTER SUZUKI'S RELATIONSHIP WITH LDP HAWKS EXAMINED Tokyo ASAHI SHIMBUN in Japanese 16 Apr 82 p 2 - [Fifth in series of articles: "Prime Minister Suzu~i's Hurdles"] . [Text] Speeches and ar_tivities relating to former Prime Minister Kakuei - Tanaka, who is good at handling matters realistically, have recently tended to be hawkish. - A party was held on the evening of 17 Merch to celebrate former Prime Ministea~ Nobusuke Kishi's becoming and LDP supreme counselor. Before approxiamately - 80 people from the political arena and business world, former Prime Minister Tanaka proclaimed in a raised voice: "A canstitution written under the occupation of anather country is not a constitution. Although constitutional amendment has been considered taboo, our party upi:olds the establishment of an autonomous constitution in its plat~orm, does it not?" Sense of Security From a Stable Ma.3ority On the same day, at a party co~emorating a publication of a Tanaka faction Diet member, former Prime Minister Tanaka said: "It is good to study amend- ment of the constitution which was given us by the occupation force." Of the 60 Diet members who endorsed the Co~nmittee of 100 Requesting Revision of _ the Japan-?t:c, Security Treaty that was founded in the middle of March, one- third are Tanaka ia~tion members. In the case of the Japan Strategic Research Center organized by Mr Shin Kanemalru, former director of the Defense Agency - and a 1Eading member of the Tanaka faction, whic~ has gathered together - retired uniformed officers of the Self Defense Forces and military specialists, - the important positions are all occupied by members of the Tanaka faction. ~ The reason behind this hawkish zendency which has encompassed the Tanaka faction is the sense of security that arose following escape from the evenly balanced situation between the ruling and opposition parties in the Diet and regaining a stable ma~ority after a long hiatus. ~ Since then Justice Minister Okuno's remark about constitutional amendn~ent last year has occurred, the membership of the Diet Members' lUnion for Realization of an Autonomous Constitution has increased to over 300, and the LDP's three . highest nfficials, including Mr Nikaido, have become vice presidents. ~ 1 ~ � FOR O~'FICIAI. USE ON~.Y APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500070028-9 FOR OFF[CIAL USE ONLY The number of parti.cipants in tha~ Diet A:embers~ Group to Pay Universal Respect tu thc: Yasukuni Shrine is 321. '.Jine cabinet members, including Prime Minister Suzuki, paid visits to the Yasukuni Shrine last year. Moreover, virtually all cabinet members are going to pay respect to the Yasukuni Shrine on 15 August this year. A party circular letter to restrain antinuclear and arms-reduction.movement was issued. There is a movement to strengthen inspection of school textbooks. Tt?e Defense White Paper placed emphasis on patriotic education. As the LDP has bPSn gradually realizing its long-term desires, the Tan~ka ~ faction's attitude h~s also becnme clear. In regard to olijectives, some - people observe t:iat: "For the Tanaka faction , awaiting the conclusion of the Lockheed trial, thQ Suzui-.i rpgime is absolutely necessary as a protective wall.. In order for Suzuki to be reelected, the Tanaka faction is trying to - fill the gap between the prime mir.ister, who sometimes shows dovish tendencies, ~ anu hawkish gruups. It i; a farsighted and deeply laid tactic." Can protec- tion of the Tanaka faction really contribute to r.iaintenance of ttxe Suzuki regime? The Uni*_ed States Provokes the LDP Hawks ~ Whether or not the United States has observed a change in the condition of the - LDP, U.S. maneuvering of the LDP has become active. Concerning the issue of increases in defense power, in particular, the United States seems to have concluded that "it is more efficient to fill in from an outer moat--the LDP--rather than attacking the Suzuki administration itself." Sir.ce last month, pro--Japanese America~s have visited Japan one after another. Form~r presidential adviser Allen, Deputy Assistant Secretary of State - Shoesmith, farmer Secretary of Defense Brown, former Minister to Japan (cur- rently ambassador to the United Nations) Sherman, and Congressman Solarz have - had meeting with important members of the LDP. All of them conveyed ~he severity of U.S. congressional criticism of Japan over the trade friction issue. They i.mpressed upon the Japanese that the "U.S. Government stands in front of these tough opinions which are directed toward Japan" (Motoo Shiina, - director of the Assoc.iation for Study of Asian Pr~blems). While giving such _ an impression,.they deman3ed that "Japan should therefore ~arry out the prime minister's pu'~lic promise" and realize "~efense of the sea lanes for 1,000 nautical miles." This kind of behind-t~se~-scenes mane~ivering by the United States is reflected in the LDP's Security R~search Committee Subcommitcee on Maintenance of Defense Power. The U.S. maneuverst an eye on the compilation of next fiscal year's budget dratt, have stimulated subcommittee moves to eliminate the - "within 1 percent of GNP" upper ceiling on defense expenditure. They are also intended "to open a road through the leadership of the LDP sin:.e the Suzuki administratior_ cannot do it" (a tormer Defense Agency director). Considering this~kind of condition within the LDP, the prime ~inister's reputation is not necessarily favorablee - i 2 = F'OR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500070028-9 ,1 Fc)R OFFICIAL USE ONLY At the palace banquet to welcome Italian President petrini on 10 March, the _ prime minister and an elder LDP Diet member had a chat: "A n~ovement to revise the Japan-U.3. Security Treaty has come into tihe open." ~ Prime Minister: "If one thinks it possible..t~~ amend the constitution or revise the Japan-U.S. Security Treaty, he is ~~squalified as a politican." "Then, it is netter for you to speak out." Prime Minister: Doing Everything ~o Maintain an Equilibrium for Relec.tion Certainly the prime minister is prudent 3bout constitutional amendment and revision of the Japan-U.S. Security Treaty. In the JaF~n-U.S. summit.meeting - Iield last year, he made c'!_ear the items Japan should reserve in regard to increases in Japanese defense power. His instzuctions for a"por.cupine-like defense system ap~+ropriate to a maritime nation" is a moderate opinion in the LDP. Tokuma Utsunomiya, a former member of the LDP's dovish fa~ .ion and currently a member of the House of Councilors, sympathizes with the prime minister, saying: "Mr Zenko is preferable~~:.n the midst of domination by the hawkish factions." The prime minister s~e.ms to be losing the support of the hawkish factions to the same extent as he. ia gaining sympathy from someone lilce Mr Utsunomiya. Nevertheless, the prime minister pulls the hawkish groups back to his side = by shifting in his attitude from time to time. While he is eager to attend - the special general meeting of the United Nations for arms reduction he re- jects endorsement of the antinuclear movement oecause it will generate an anti-American atmosphere. He once opposed a big increase in the defense budget, but in the end he approved it. In regard to the LDP's requests for official visits to the Yasukuni Shrine by cabinet members and establishment of a day to mourn the war dead, the prime minister re~ected the former but accepted the latter by entrusting it to a third party for detailed study. The prime minister's politics of "harmony" sometimes maintain a balance by following the strongest forces and the loudest voices. For example, he ~ appointed members of the Tanaka faction, the largest faction, to various , positions. He accepted reexamination of the green card system. He held back _ from addressing political ethics. He raised the producer price of rice in the last fiscal year. Whether or not these are due to his skillful main- - tenance of political power, at any rate he does not step outside the bounds of trends within the LDP, which are often marked by overeagerness. The leading member of ~he Suzuki faction says: "Considering the path towa,~d reelection, there are many instances when the prime minister cannot push through his opinions." He also admits that the - prime minister's political technique is rather effective. 3 FOR OF'F[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R000540070028-9 I'VK Vr~It.~nl. v~~: ~~~~~a Which way this prime minist~r's sense of balance for the purpose ef reelection directed the course of Japan is a question that will be asked when we look back at our history in the future. COPYRIGHT: Asahi Shimbun Tokyo Honsha 1982 9896 ~ CSO: 4105/100 4 FQR OFF[CIAL USiE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 - FOR OF~ICTAL USE ON1.Y POLITICAL AND SOCIOLOGICAL POSSIBILITY OF FUKUDA'S BID ~OR POWER DISCUSSED Tokyo YOMIURI SHIMBUN in Japanese 11 Apr 82 p 2 ~ [Text] "The revenue deficit in the FY-81 budget is going to be big. Since a revenue deficit is a financial issue, in that sense it becomes a political i:ssue." Thus predicted former Prime Minister Fukuda. As if to substantiate his prediction, the issue of the revenue deficit came out at the cabinet meet- ing and the 1.DP Executive Committee meeting of the 9th. The government has begun reexaming.its economic management. Alth_~ugh Pri.me Minister Suzuku still maintains an aggressive stance and says that "the goal of reducing deficit government bonds to zero remains unchanged," he is undeniably caught in a - pinch. On the other hand, Mr Fukuda avoids talking about the political situation as much as possible and remains calm and quiet. What has happened to Mr Fukuda's other pr.ediction of "a great disturbance in the world?" Contrary to former - Prime Minister Tanaka, who is much talked about one way or another, Mr Fukuda continues to hold an uncanny sil~ence. ~ "This year is going to be a year of much disturbance. Even though we do not move, heaven will move." - At the beginn~ng of this year, Mr Fukuda uttered sensational remarks one after another. He may have spoken them because of his bitter feeling toward - "ihe Suzuki-Tanaka axis," which dared to appoint Mr Nikaido secretary gen~ral in t~e cabinet reshuffle at the end of last year. A more likely reason is, however, that he was picturing to himself the thorny path toward November's - LDP presidential election, which will include the first verdicts for politici-~. - ans who are defendants in the All Nippon Airways case of the Lockheed trial scheduleci.in the spring, a verdict for former Prime Minister Tanaka which early this year was expected to be handed down this fall, a di.fficult recon- structuion of national finances and economic management, and furthermore, ' external pressures surrounding trade and defense. It is not hard to imagine that Mr Fukuda was picturing himse'f the path at the beginning ~of this year. The political schedule Mr Fukuda fixed is certainly falling to pieces at least partizlly because of countermeasures by the Tanaka side, including a delay in the verdict on Tanaka. However, the revenue deficit has become a - political issue entangled with speculation on the political situation. The - Suzuki administration is being forced to correct its economic management 5 _ FOR OFF'[C[AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2447/02/09: CIA-RDP82-44850R444544474428-9 FOR OFFICIAL USE ONLY E~u.tLcleS. At tlits tlme, ls Mr Fukuda ready to change hls previous attitude of- "supporting Suzuki" and become "active?" Attention in the political arena is now focused on just this point. Recently a Diet member of a certain large faction visited Mr Fukuda. Mr . Fukuda pointed out to him again the importance of the revenue deficit issue and told him the following: "Mr Suzuici's reelection must be considered care- fully. However, the question is who is to succeed." Restraining the Diet member who replied, "Mr Fukuda, you ahould become prime minister," Mr Fukuda supposedly said that "the age of the new leaders will inevitably come, but - before them how about Mr Komoto (director of the Economtc Planning Agency)?" According to the analysis of the same experienced Diet member, Mr Fukuda is in a complex state of mind: (1) Although he has doubts about Suzuki's reelec- tion, he cannot find a good candidate that he can support as Suzuki's succes- sor. (2) He cannot completely deny his own desire for a comeback as prime minister. (3) Although he feels a clcseness to Mr Komoto, the situation has ~ not yet reached the stage for a"Fukuda-Komoto tie." Although he is very critical of the concentration of power in the Tanaka faction that is the other support of the Suzuki administration and distrusts ~Suzuki's politics, Mr Fukuda still cannot decide to take action to turn the political situation. His mind is still unsettled. As if seeing through his - mind, the Suzuki and Tanaka factions make cynical remarks about Fukuda. "Be- cause Fukuda himself wants to relieve the prime minister, he neither seriously - su~ports Komoto nor takes rough actions to antagonize us" {a leading member of the Suzuki faction). - Putting aside these speculations from the outfield bleachers, Mr Fukuda - himself enjoys his present position considerab'_~ by making pinpricks at Suzuki and Tanaka. "Although nothing will happen by summer, there will be many crises by November's presidential election. I will store my energy for a while." "Th2 basis of people's trust in politics is clean p~litics." - Then, when and how will Mr Fukuda turn to the offensive? In particular, how is he going to respond to the~presidential election? This is going to be a focus of attention. "If the prime minister's leadership is firm, there will be no primary election. How Mr Nakasone (director of the Administra~ive Management Agency) acts will - determine the future political situation." � Although Mr Fukuda has been negative about the primary election beca~+se he has thought it would have too many adverse effects and until last Sear declared that there would be no primary election, since he is one of the two powerful men along wit:~ former Prime Minister Tanaka, indica~.ions of recrgani- zation in the political arena such as "a Fukuda-Komoto tie" or "Fukuda-Komoto plus the middle-of-the-road parties" glimmer fitfully in the distant background. 6 FOR OF'FICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2407/42/09: CIA-RDP82-40850R000500470028-9 FOR Q~FICIAL USE ONI.Y ln any case, he is certatnly expecting "u great disturbunc~" tu ~sc~~ur b~~~weeu 8 June, ~ahen verdicts will be handed down to the defendants in All Nippon Airways case of the Lockheed txial, and the middle of next year. Former Prime Minister Tanak.a, Fukuda's rival, is also busy every day tightening up hia own camp as if to say "Be aware of Fukuda." COPYRIGHT: Yomiuri Shimbunsha 1982 9896 CSO: 4105/98 7 _ FOR OFF[CIAL US~ ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R000540070028-9 h'uK urrt~~AL ua~, u,~~Y POLITICAL AND SOCIOLOGIGAL - NAKASONE'S DILEMMA D::SCRIBED - Tokyo THE DAILY YOMIURI in English 8 May 82 p 3 - ["Political Beat" column by Kenji Kitahara] [ Text ] ~Z ~in trying not to be preoccupied witti o! strategy. ambition aad not to be sensitive. i will One of them is to thoroughiy carry out never take any lnitiative." the task of administrative reform in line These ars the ' words ot Yaauhiro Pia- with Prlme Minister Su2u~'a directives. kasone, dlrector-Beneral oi the Admialat- However, there Sa a dlspute within ths rative Management Agency, wt~o ia a Sgure government as to which should come flrst, in the political world at a tim~ when busineas stimulation or u~minlatrative re- politics are being stirred up a6~ after a Qa~ a~d by Komoto ras Naka onees riva2 period oi Lranquility. Nakason~ spent ~he hoIIdays oi "(3olden !a becoming louder. Week" at a larm in the Tama area o_' In this sltuation Nakasone aibaa to - western Tokyo and at hia villa in Karuiza- strengthen his position by urging the wa. Nagano-ken. premier to continue pressing for admin- - His vacatioa was appareatly aimed at fstrative reform. stockpiling energy !or the preparation oi "Noth:ng ventured, nothing galned." Na- sectional reports to be submitted ia or kasone apparently would llke to learn ' . aiter mid-May aad the basic report on ad- something irom this ~roverb. . ministrative reform to be compiled in July. The other strategy is more positive. Na- Whethei Prime MinlBter Sa'~uki will be ' kasone may be able to casE the decidinb - reelected ia the Liberal-Democratic Party: vote i! Suzuki, supported by hLs faction y (LDP) presidential electioa scheduled ior and that of Tanaka, and ~ Komoto, backed December depeads upon how Nakasone by Fukuda and Nakagawa, are atymied be- and Toahio Komoto, director-general of cause of the bslance o! power. the Economic Plaaning Agency, will act. I! thls occurs, Nakasone will announce - Komoto, ovha is close to former paime _ that he will not run in the preliminary minister Takeo Fukuda and ia deepenin6 .election and that he will support Suzuki relations with. ichiro Nakagawa, director- ~in order to carry out administrative re- general of the 3cience and T'echnalogp form in a bid to secure victory for Suzuki. Agency, aad Ikko Kasuga, adviser to the If thia comes to pa-c, it is speculated Democratic-3ocla1lst Party, is conductinq that �.the 3uzuki and Tanaka factions an open race for the LDP preaidency. would become indebted, to Nakasone and Iiowever, obaerver~ feel Naka?sone's plans age~ Lo suport hlm a~ the LDP president seem obacurs. to . iollow Suzuki. This may be due to the tact that Naka- His ailence encourages this kind o! spe- - soae 1s now trapped in the task of ad- culation. minfatrative reform as former psemier ~a- Hut there la no guarantee that the po- kuei Tanaka points out or due to a more 1ltical sltuation wlll develop !n this way complicated strategy as ore oi the iavor- conaiderinB the constant shifts of alliances. ites in the race. But there seems to be tto other choice but According to those who are close to Na- this, and it la reported that this was whut kaaone, he is actuallq planniag two tyyes Nakasone tald his assoctates. . COPYRIGHT: The Daily Yomiuri 1982 CSO: 4120/271 8 FOR OF'FICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500070028-9 FOR OFFICIAL USE ONLY POLITICAL AND SOCIOLOGICAL r NAKASONE FACTION'S ROLE ANALY.�.ED ' Tokyo THE JAPAN ECONOMIC JOURPiAL in English 18 May 82 p 10 ["Political ~cene" column by 'Yet~uo Tamura: "Nakasone Faction May Have Deci3ing - Power"] There is a growing belief among politic~l party president (and the premier) right [Text] circles that Yasuhiro Nakasone, director away. But if he did,~ Japan's poliGcs would ~ general of the Administrative Management become chaotic. There also would be a _ Agency, and his faction will have the decid- probability that Nakasone would incur the ing vote on the outcome of the ruiing Liberal wrath of the Tanaka and Suzuki factions and � Democratic Party's presidential election lose his chance to be the party president. slated tor Nwember. Tne reason is simple: Furthermore, even it Fukuda, Miki, Naka- the Nakasone faction, a quasi-mainstream sone and Nakagawa joined hands under the Eaction" aligned with mainstream Tanaka banner of "anti-Suzuki," there would be a and Suzuki factions, could �eriously aftect chancP that thase four factions could not the Suzuki Cabinet's fate if it moves even an reach a consensus on a successor to Suzuki, inch toward "anti-mainstream" factiu~s. and after much confusian, Suzuki would be That is, if the Nakasone faction joins the rew~ecte~; to the presidency. camp of "anti-mainstream" Fukuda, Miki Faced with this praspect, Nakasone and and Nakagawa factions, the LDP's present ~s faction are keeping fheir stance as a tactionally-balanced framework cauld be ~�yuasi-mainsUeam" faction in an attempt to _ disintegrated very easily, thereby staggering W~~ ~Wer with support from the Tanaka and - the very toundation of the Suzuki Cabinet and Suzuki tactions. There are a number af suddenly throwing the LDP into a very un- ~~ues which could passibly threaten the stable situation. faundation of the Suzuki Administration, For example, if Nakasone decided to clear- such as the -expected shortfall o[ ~ 3 trillion ly go againsl Prime Minister Suzuki and run ~ revenues [or fiscal 1981 and the court rul- - in the coming presidential election, it wauld ~~8 ~une 8 on defendant (and incumbent be almast certain that the election would be Dietman) Takayuki Sato in the Lockheed - held. At present, Prime Minister Suzuki, PaY~t case. Director General Tashio Komoto ot the Eco- Under such circumstances, one cannot nomic Planning Agency, and Director Gen- deny the passibility that the Nakasone fac- - eral Ichiro Nakagawa of the Science and Csan will change its mind and suddenly join Technology Agency have expressed iheir ~e ~~anti-mainsUeam" camp when the occa- intention to run in the election. If Nakasone sion arises. At present, a prevailing view joins those three, there will be tour candi- within the LDP does not warrant Nakasone's dates, and lhe presidential election must be chances to succeed Suzuki, but there is no - held according to party nyles. That is, if denying that Nakasone is the most likely - there are only three running, there will be no candidate to become the next premier. For need to hold a primary election and the run- this reason, everyone is keeping a conslant off election by LDP's Dietment will decide watch on~every move of the Nakasone tac- who should become the next party president. tion. If viewed from a ditferent angle, how In that case, party leaders wil! probably hold Nakasone sees things and what action i?~ - talks to avoid confusion and conflict~ and takes by this November will determine the - Suzuki is very likely to be reelected to the final outcome of the LDP's presidential elec- presidency. tion and the future course of Japanese On the other hand, even if Nakasone de p�~~tics. cided to be "anti�~Suzuki," it would not en- . hance his chance of becoming the next COPYRIGHT: 1982 The Nihon Keizai 5himbunsha, Inc. cso: 4i2o/2~0 9 - FOR OFFICIAL US~ ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2407/42/09: CIA-RDP82-40850R000500470028-9 FOR OFFICIAL USE 4NLY - POLITICAL AND SOCIOLOGICAL CH~'JGED NATURE OF LAI;~iR SPRING UFFENSIVE ANALYZED - Tokyo NIHON KEIZAI SHIMBUN in Japanese 16, 17, 18 Apr 82 [16 Apr 82 p 2] [Text] "It will conclude with a bluff fight." (Top-level executive of the General Ccsncil of Trade Unions of Japan) The 1982 spring offensive was the � first "spring of~ensive without a transportation strike" in the history of ; spring offensives because a strik~ of the ~ajor private railway companies and = the Japanese National Railways was averted. Amid the administrative ~eform storm and the criticism of "the good old government will foot the bil]." atti- ~ tude, there is no way of concealing the ebbing of the National Cour~cil of Gov- ernment and Public Workers Union (Kankoro), which until now has taken upon - itself the role of axis of the labor movement. The labor tide has started to shift froa~ Kankoro to private union leadership centered in the labor front Unification Preparatory Association (Toitsu Jumbi-kai). National Council of Government and Public Workers Union Disheartened Kaoru Ota, chairman of the General Council of Trade Unions of Japan (Sohyo), who is bath the originator and father of the spring offensive, preached the - "end of the spring offensive" in 1975 with the comment.: "A settlement was - reached on the price offered by the employers via their response to the iron ~ and steel workers." It is forecast that this year's spring offensive wage in- - crease will somehow reach the 7 percent level and "actual disposable income will increase about 2 percent." (Chairman Miyata of the Metal Workers Federa- tion) And there is no f eeling af defeat in the labor unions. Rather, it is held that private industrial unions, such as the International Metal Workers Federation-Japan Council's common front of steel, electro~ics and automobile workers and the General Federation of Private Railway and Bus Workers Unions of Japan (Shitetsu Soren) have "fought well." Kankoro, through the Natior?al Railway Workers Unions (Kokuro) and the National Railway Locomotive Enginee~rs Union (Doro), and Sohyo, in which Kankoro occupies the main current, have beeu battered. The fact of "no JNR strike" for 2 con- secutive years has clearly given the impression of a decline in Kankora's _ power. Given the stormy sea of the "administrative reform spring offensive," Kokuro officials have been locked in a prone position since the beginning of the year, saying: "If possible, we want to avoid a strike." The criticism that the workplace discipline is lax has also helped, and it may be accurate to say that Kokuro is "no longer able to wage a strike." _ 1G = FOR OFFICIAL USE ONLY ~ APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 FOR OFFICIAL U5E ONLY - Rise of Labor Front Unification Preparatory Association On the one hand, Shitetsu Soren, th~ main power in Sohyo affiliated pri~vate in- dustrial unions, made application to partic.ipate in Toitsu Jumbi-kai before the - spring offensive, and intensified its "separation from the government uniona." An illustration of the coordination of strike dates strategy until now is that Sohyo proffioted coordination with Kokuro. PJevertheless, Shitetsu Soren indepen- - dently set a strike for the 13th and 14th, and after that the Council of Public Corporation Workers Union (Korokyo), such as Kokuro, went along with them, de- - ciding to strike for half a day on the 13th. Backbiting com~ents, such as "we carried a heavy burden" or "an ugl.y woman's persistent attachment," we~e heard ~ from within Shitetsu Soren. Chairman Katayama of the Federation of Independent Unions (Churitsu Roren) (chairman of the Federation of Electrical Workers Unions) - has predicted that "leadership by the private unions will be strengthened more and more." Toitsu Jumbi-kai is at the stage of recognizing participation of the second echelon of Sohyo, such as Shitetsu Soren and the National Trade Union of Metal and Engineering Workers, on the 17th. If so, infZuential private industrial unions will be assembled in ~oitsu Jumbi-kai and about 4.3 million members will col.lectively have the strength to match the membership of Sohyo (4.57 million members). It is inevitable that in the fa].1 Toitsu Jumbi-kai will expand and reorganize into a"council," and will assume leadership of the spring offensive next year. In some ~aays, this spring offensive was also the spring offensive which ques- - tioned how the "Toitsu Jumbi-kai spring offensive shou~d be." L~t ~he beginning of April, Noboru Goto, president of Tokyo Electric Express Railway, Ltd, ob- served that "this year will see a serious spring offensive in that Toitsu - Jumbi-kai has been allowed to take root," and that he would send back a = generous answer to Shitetsu Soren as a congratulatory gift for its joining Toitsu Jumbi-kai. Management's "parental affection" in fostering the sprout- ing Toitsu Jumbi-kai could be seen at every turn. Birth Pains in Next Year's Spring Offensive As for the rise of Toitsu Jumbi-kai, zhe view concerning the National Spring Offensive United Front Congress, comprised o~ Sohyo and Churitsu Roren and others, that "next year Dhuritsu Roren will pull away fro m the congres~ and the congress will noz be organized" is spreading. (A11-Japan Telecommunica- tions Workers Union official) They have been placed in a life or death crisis. - Chairman Katayama himself, one of the rounders of Toitsu Jumbi-kai, spoke ambiguously with these comments: "If Toitsu Jumb i-kai is substantially _ strengthened, naturally the private united front will becom,e its axis. How- - ever, if the view of labor f ront unity does not grow a little more, the spring offensive united front may last only one more year." It is certain that the "decline of the spring offensive united front" has drawn near. The end of the spring offensive. Granting that the spring offensive format does not disappear, the spring offensive formula to date, whereby the wage i.ncrease market is pushed up via the effect of riding together under the 11 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2447/02/09: CIA-RDP82-44850R444544474428-9 - FOR OFFICIAL US~ ONLY backdrop of a strike, has, in substance, become a mere shell of itself. And - the Sohyo style labor linkage with Kankoro as its core is standing az a turn- = ing point. In such a situation, wili ~he Toitsu Jumbi-kai and private unions' spring offensrve give birth to a new spring offQnsive formula? The private railways' labor and management have already begun to grope for a labor-management coop- erative "united response formula" similar to that of the steel workers. Even - within Sohyo, the assessment has been voiced that "because it will be the end - of a one-shot response comes to the forefront; we will do our utmost until a - reply is given; it is worth a three-shot response." (Sohyo official) Therefore, this also has the defect of making it easy to fall into a"spring - offensive controlled" by management. While Sohyo and Kankoro are searching for the path to a painful ?-ebirth, in the meanti~e, fi.he private unions for which Toitsu Jumbi-kai is a mother's womb seem to be experiencing the birth ~ pains of a new spring offensive pattern. [17 Apr 82 p 2] = [Text] "It is presimnptuous for us to grade this year's wage increase offen- sive, but won't everyone give us a prize for our fighting spirit?" On the 8th, when a simultaneous response was given ta the metal wo-rkers federation (Inter- national Metal Workers Federation-Japan Council, six metal and electrical workers unions), Ichiro Shio~i, chairman of the Federation of Automobile Work- - ers Unions, boastf ully made the above co~nents. The rate of consumer price - increase in FY 81 was 4 percent, a reduction by half over the previous year (7.8 percent). Since it was expected that this year a wage market "in con- formity with prices would drop sharply compared to last year's 7.7 percent average, this may be called an expression of confidence from labor, whose out- - look was that a 7-percent increase could be maintained throughout the Japan Council. However, the view is strongly held that in this year's spring offensive, the employers judged there would be no transportation strike by private and gov- ernment railway workers from the very beginning, and joining forces, they worked out a higher than anticipated wage increase. The response to the steel- workers, which is the standard for the response to the private railway workers, was Y3,100 yen, a 6.36-percent increase, less than last year by only 400 yen - or 0.63 percent. The private railway workers answer topped ttit steelworkers offer by 1,200 yen during the last 2 years. The private railway management promptly declared early in April that "a difference of 1,200 yen will be main- tained this year as well." It can be said that the private railway response was set at more than 14,300 yen. High Offer Was Effective At this stage, the observation that "There will hardly be a transportation - strike" began to be made by some within the Japan Council. After all, the second reply to the private railway workers which came on the 12th was settled at 14,500 yen, which added 200 yen to the bottom line, plus cost of living allowance (1,000 yen beginning in October). 12 FOR OFFICIAL USE ONLY I APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2407/42/09: CIA-RDP82-40850R000500470028-9 - FOR OFFICIAL USC O1~iLY While the negotiations were continuing to the utmost before the second reply, thera were even union officials in the major private railway workers union~ who were sayin~, "If we get 14,500 yen, there will be no strike even without the living .allowance given last year." It can be said that the employers' deep attachment to a"no strike" was the reason for the high response. One person connected with the National Ra~lway Workers Union (Kokuro) made the follc+wing analysis : "It was handled perfectly by m~*�3gement. Kc~kuro and Doro could not have a stri::e independently. Ii ~here is no private railway workers strike, a sCrike by Kokuro and Doro would autamatically disap~;ear. _ Next year and thereafter, private railway management will make a high offer and try to continue the 'no strike'; aren't they aiming at a single shot re- sponse in the future?" Kokuro and Doro Also Pull Back From Strike Amid severe criticism of ~NR, such as blackmarketing and working while drunk, Kokuro and Doro have conspicuously lost ground. Nevertheless, this year from _ their position of honor as the "core unions" in the spring offensive up until now, Kokuro and Doro set the strike dates--a half day on the 13th beginning - with the first train departure until noon f'or the ~?ational Railways commuter � trains in the capital and Osaka areas, in t~itison with the major privatE. rail- way workers; on the 15th for the principal arterial railroads; and or. :.he 16th, simultaneously throughout the entire country. But from the velry begin- ning, they had no intention of striking. There are ind.ications that even re- garding the simultaneous strike with the private railway unions on the 13th, Kokuro approached the private railway unions about aver~ing a strike. - What will happen to the private railway unions strike next year and thereafter, given the phenomenon of Kokuro and Doro which joined forces with them in the - transportation strike calling for a"pull b3ck from striking?" Likewise, management does not have a clear and accuratt~ outlook, saying, "If possible, we will settle with a one-shot response, and ~~e would like to stop making our passengers nervous, but it will take 4 or 5 more years." (Managing Director Sudo of the Japan Privately Managed Ra~Llway Association) Shitetsu Soren (whose chairman is Taiceshi Kur~kawa and which has 203,000 m~- _ bers) holds a pessimistic view on a no-strike settlement. The problem is the extent of the reply; it can't be said that the pattern next year will be the same (as this year, which had an early settlement). It will still. take time to arrive at a one-shot response. Likewise, there ar.e times when the strike - itself is the objective (for riaintaining the organization)." (Chief Secretary Tamura) ~ One key forecasting the direction of the private railway strike is the course of T.oitsu .7umbi-kai (Labor Front Unification Preparatory Association), which ~ took leave of the Kankoro type labor movement which makes the strike omnipo- _ tent, and is advancing with the leadership of the private labor unions. Even though it was. shelved at the managers' conference of Toitsu Jumbi-kai held on the 16th, Shitetsu Soren's application with Toitsu Jumbi-kai is an already established route. There is also the view that "management's intention in hoping that Shitetsu Soren will affiliate with Toitsu Jumbi-kai (whose aim is ~ the no-strike line) is working behind this year's high offer to the private railwaqs." 13 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 EOR OFFICIAL USE ONLY Break-up Deepens in Korokyo ~ l~:oreover, the dreakup wltk?in the Council of Public Corporations Workers Unions ~ (Korokyo), such as Kokuro and Japan Telecommunications Workers Union (Zendent- su), is showing signs of deepening further. Even concerning this apring's - basic wage rate increase, it was strongly voiced within Zendentsu whexe busi- ness is good that "Let's increase the difference with JNR where there is a - deficit," but in the end, it seemed to settle at about the same rate as in the past. Apart from the reality, dissatisfaction has a~~c~rmulated with Kor~kyo which took pride in ~eing a monolith, and there is Lhe potential for the cri- sis of dissolution. _ "The private railway unions are going to Toitsu Jumbi-kai, and Kank.oro is being cut uF, Not to mention t;he private railway objections, th~ decision far no n strike will un*:istakabiy take root beginning next year. Such comments from a Kokuro official appea~~ to suggest a spring offensive next year and thereafter. [18 Apr 82 p 2] jText] The backers are outside the mosquito net. The Japan Federation of - Employer.s Association (Nikkeiren), the General Council of Trade Unions of Japan (Svhyo) and the Ministry of Labor are the backers needec~ for the spring - offensive. The wage increase in this year's spring offensive was decided with- out concern for these backers, who were all put outside the r~osquito net. For example.... "We are not say~ing, proceed with a wage increase in accordance with the produc- tivity standard principle, but instead we are saying we want to temper the pro- ~ ductivity standard principle with the ability to pay." (Chairman Otsuki of - Nikkeiren at a regular interview on the 14th) "This year's spring offensive is full of changes in comparison with the past. Official sources are talking about everything from the content of the reply to the time period. An illegal act!" (Chairman Makieda of Sohyo at a press conference after a meering with Minister Hatsumura of the Ministry of Labor on the 12th) "Each enterprise decided independently on a wage increase with both Zabor and management. No problems appeared. Our turn never came." (Official of the ~ Ministry of Labor af~er agree~ment in the wage increase negotiations with the private railways) Nikkeiren Ignored It was Nikkeiren which waved the flag of wage restraint, insisting on "a wage increase within the limits of a productivity increase rate." But when the re- sults were known, the major private companies went with a 7-percent wage in- - crease. ~oth labor and management effectively ignored the Nikkeiren guidelines, - and decided on "their own" wage with labor and management cooperating. It can be said that Nikkeren's wage increase tk~eory ended in "empty talk." 14 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2407/42/09: CIA-RDP82-40850R000500470028-9 FOR OFFICIAL USE ON1.Y Condition of Piajor i'rivate Industrial Union Wage Increases Last Year's Years Amount and Base Actual ResulL~ Aver- of Em- Percentage Wage (yen and age ~loy-- of Offer ( en percentage) Age ment Electronics (14 companies) 13,072 + a 175,560 13,344 (8.1) 32.7 12.2 (7.5+ a) Automobiles (11 companies) 13,223(7..4) 179,424 13,611 (8:0) 34.4 11.4 Iron and~steel (5 companies) 13,100(6.36)206,000 13,500 (7.0) 35.0 15.0 Shipbuilding (7 companies) 13,100(6.6) 197,366 13,500 ~7.1) 37.5 16.0 _ Power utilities (9 companies) 13,800(6.3) 219,Ob2 14,300 (6.9) 35.5 1b.6 Private railways (8 companies) 14,500(7.06)205,467 14,700 (7.6) 39.%+ 19.0 = (N.B.) Only steel differs from the other industries in the standard laborer's formula. This is also the reason for~the weak-hearted words from Chairman Otsuki, speak- _ ing on behalf of Nikkeiren: "We want to temper the productivity standard prin- ciple." The situation is the same with Sohyo. In addition to the "pressure" from ad- ministrative reform, disorder in the National Ra~.lways labor union which - symbolizes Kankoro is the subject of all-out public criticism. Even though - Sohyo wanted to get a word in on the spring offensive, the circumstances did not allow it. Shitetsu Soren, which leans most toward Kankoro am~ng ^the pri- vate labor unions, explicitly broke away from Kankoro in this year's spring offensive and 3oined the private unions. Sohyo, that is, Kankoro, stood com- pletely alone. The spring offensive was an affair symbolizing change. In this situation, a no-strike spring offensive materialized for the fist time and, as it were, generally settled down with a wage increase standard. The _ Ministry of Labor also has no turn in an undisputed spring offensive. A spring offensive. close to the Ministry of Labor~'s ideal materialized but ironically resulted in dimming the significance of the existence of the Ministry of Labor. Disposable Income In.crease Expected - In this year's spring offensive, labor and management of the ma~or private companies realized a 7-percent wage increase without being bothered by the backers. Since many factors, such as business trends, the enterprise's earn- ings, labor-management relations, trends in other companies in the same indus- try, and labor supply and demand were counted in the 7 percent. Tlxe wisdom of both labor and management was pooled. What inf luence will this wage increas~ have on business (especially the indivi- dual consumer) and prices? 15 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2447/02/09: CIA-RDP82-44850R444544474428-9 FaR OFr[CIAL USE Oh1.Y First of a1Z, Iet's look at the influence on individual consumption. It is said _ that one reason.for the stagnation in consumption is the decrease in real wages. ~ Especially ~ith the natural tax increase~ real disposable income has dropped for 2 consecutive years. There is no hope for a recovery i~ consumption. However, the Ministry of Labor's analysis is that with the 7 percent increase, "about a 1 percent increase in real disposable incoffie is firm." The condition for a recover~? in individual consinnption has been tentatively - arranged, and the prominent view is that "the psychological effect of gaining a 7-percent increase will sL~:a?ulate individual consumntion." (Ministry of Labor) Nevertheless, cor~sidering future business trends, the~t are also impor- tant factors such as rhe decrease in overtime work and a constriction of the bonus. There is little possibility of total cash wages expanding more than last year. And even considering the influenr_e on prices, the generai view is that "I don't - think it will be a factor in price increases." (Chairman Otsuki) However, this does not mean it is not a matter for concern. "When the future international competitive ability is considered, I feel it was a little high." (Chairman Otsuki) Further Acceleration of Private Leadership Certainly, the United Automobile [7o~kers of the United States and West Germany's - Metal Worktrs Union accepted an actual decrease in wages in this year's wage - revision. ::oncerning wage increase, a phenomenon of passing each other occurred between Japan and Europe and the United Statesa This is a matter of concern for ~ management looking at the mid- and long-term views. - However, the majority in the financial world voice the opinion that ti;e movement of "employment over wages" in Europe and the United States is two or three = rounds behind Japan." It is not thought that a 7-percent wage'incrF.ase will have an effect on international competitive ability. Concerning this y~ar's spring offensive, certain persons in the financial world - stated: "Real ~aages increased and public sentiment will stabilize." It can also be seen that~in thisyear's spring offensive, Japan's labor and management made the "wisest" decision both macroeconomically and politically. In this year's spring offensive, this pattern became quite clear--the influen- tial power of the old backers dimmed and the negotiations of private labor and management will clecide the spring o'r."fensive market. Such movement will accelerate ~even more in the spring offensives next year and thereafter. COPYRIGHT: Nihon Keizai Shimbunsha 1982 9400 - CSO: 4105/93 . - 16 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 FOR OFF'~CIAL USE ONLY POLITICAL AI~ID SOCIOLOGICAL . HANDLING OF F-4 PHANTOM ISSUE CRITICIZED Tokyo BUNGEI SHUNJU in Japsnese May 2 pp 136-146 [Article by writer and Diet member Shintaro Ishihara: "F-4 Phantom Deception"J _ [Text] Philistine Politica Rejected Unsound "Diet Policy" Broadly speaking, as long as there are internal politics and external pol- ~ itics, the political aims of any government are varied. In addition, those aims are organically intertwined, and the political means and methods for their attainment are implemente3 while interacting with each other in a com- plez manner. In this sense, except for very unusual circumstances under given conditions in _ a given era, a singular and absolute political aim or theme is difficult to conceive. The prir..ri:ies within a variety of political aims are not deter- mined e~.sily, and if thep are determined they are inevitably altered due to changes in eras or other pa?~*_ical coeff icients. It is very dangerous for politicians in posi~tions of leadership--i.e., a limited group of people who have a powerful influence not only on politics but also on society in general from the standpoint of social engineering, in- cluding the spirit and psychology of the national anasses--to easily de~ermine the prioritfes of aims within the politics at their disposal. The upshot is that the range of political choices is narrowed down and rendered inf lexible, while the nation and the people are likely to be compelled to bear ~nnecessary sacrifices and losses. ~Poday, unnoticed by the people, politicians are always acutely sensitive to _ the handling of legislative and political affai.rs by the Diet and the govern- ment~ There is a firm order of top priorities concerning political goals. It is called "Diet policy" and all political issues must yield to Diet policy. Nevertheless, "Diet policy" is merely a means of Diet operation and should be subordinated to concreCe political issues. But in the present politias, the cart is being placed before the horse. 17 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02109: CIA-RDP82-00850R400540070028-9 FOR OFFICIAL USE ONLY Roughly speaking, a judgment of political values is made only by induction in re lat3.on to politically indispensable matters--ma.inly the budget and elec- tions. - However, a budget is only a budget, be it the ma.in budget or a supplemental ' budget. It is merely 3 political derivative, while an election is merely a component of pelitics. Of course, it depends on the nature of things, but a political theme which can influence the fate of a:.ation can also become a factor in basically influencing a national budget in proportion to its im- portance. It can also provide the political impetus for a new election, de- pending on the political situation. Nonetheless, in Japan's politics today, _ the cart is placed before the horse, and regardless of the importance of a political issue, discussions are held only in the framework of such a per- - ve rs ion. _ This has resulted in a serious confrontation in Diet deliberations, and the _ more likely an issue is to evoke heated debate, the more possible it is for a budget to be denied speedy approval, depending on the Diet policy of the op- = position. Therefore, ir. order to provide impetus for a new.election, the ruling party would attempt to water down the key political issues by resort- ing to superEicial debate and deliberation, while the opposition would demand concessions from the government party, irrationally distorting the substance of the issues, in order to prevent the formation and implementation of the - budget. Meanwhile, whenever there is the possibility of an issue being - linked to an election, it is customary for the substance of the issue to be _ diffused amid stormy debate from the two sides. The individual political i~sues which become the subject of Diet deliberation constitute the heart of p~litics, while the derivative issues and procedures such as budgets and elections are mere auxiliary affairs. However, the sterility of modern Japanese politics stems from the reversal of .these two - elements. It could perhaps be offered as solid proof of the qualitative de- cay of an advanced culture which Sei Ito predicted long ago in his thesis on culture during the early stage ~f Japan's consumer society. The forma.tion and implementation of a budget are indispensable in government administration. However, as long as the separation between the executive and legislative branches of government is a key prerequisite for demacracy, it cannot be considered sound from the standFoint of the functior~~.ng of democracy for the concepts of the executive branch to coincide completely with those of the legislati.ve branch in which a political party plays a role, although tha.t party happens to be the party of a long-reighing government. The formation and im~lementation of a budget are most important to a government official, next to - his life. Or rather, it is the raison d'etre of a goverrunent official. Despite this, and regardless of the existence of a large number of former of- ficials as Diet members of the ruling party, it is definitely unsound for them - to completely dominate the party's concept of values and purpose. The absolute _ control of the Japanese nation by its bureaucrats is clearly evident, judging from the concepts held by the ruling party. , ' 18 FOR OFFICIAL USE ~ ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2407102/09: CIA-RDP82-40850R000500070028-9 FOR OFF[CIAL USE ONLY - As long as politics reflect their concept of values--or rather, their sense - of highest priority regarding their methods and practices as government of- ficials--there can be no hope for dynamic politics. There would be no reason to expect foresight on the part of politicians to tranacend the present or to itave a historical awareness. Their concepts should not move ahead of the cycle of budget formation, nor could they willingly accept the correct3an and revision of their past errors due to their excesaive self-pride. To conduct all political affairs on the basis of induction from the forma- tion and implementation of the budget--tt~at is, the methods of the present _ Libera 1 Democratic Party (LDP) and its government in placing top priority on "Diet policy"--may be easily explained away as self-defense, even when a - basic error has been couunitted, but to that extent they are only being irre- sponsibl.e and philistinely customary. I would venture to say that the charge often made by the ruling party, to the effect that the perennial immaturity unique to the opposition and its irrespon- sible brazenn.ess in refusing to acknowledge that fact has produced the present - state of Diet policy, is actua.lly the opposite of reality. That state was actually derived from the disposition of the ruling LDP itself. _ 1 i . , ~ ~ - ~ - ~ r~r~?~I'~ ~ . - ~ \ ~ _ ~ ~ � \ ~ ~ % ~ 1 ~ ~ ' �I ~ .f! Mr. I i~ I ~ - ~ ~ . ~ � J f 405iif ~ " ~ 508' .4'. ~ ' F-4EJ ~ ~ t5400iif~ ' ~ ' /S00i'it'4liil ~ � 1x4 i~Mlr# ~ ~ , F-15 ~ 280' ~ ; ~ ~ ~ . F-4EJ � 7 0' 4. - ~ ; i ~ i~ F-1 !�1200i~T ' 1'~ ~T _ ~ / \ 895' !E _ ~ ~ - ~ ~ _ 412i~! Ih800iK~ 19 - FOR OFFICIAG USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 FOR OFFICIAL U5E ON~.Y xey: 1. Map of Japan and Its Environs - 2. 405 nautical ~iles 3. 508 nautical miles 4. F-4EJ about 400 nautical miles (500-1b bombs x 4 aboard) 5. F-15 about 280 nautical miles 6. F-4EJ about 250 nautical miles 7o F-1 about 200 nautical miles . 8. 335 nautica? miles 9. 895 nautical miles 10. ~+12 nautical miles 11. about 800 nautical miles ~ Government Views Fail To Present Perspective My preface has been somewha~ lengthy. The ma~ority of the people who pre- - sented the i~DP with an unexpectedly decisive victory, albeit tacitly, in the previous general election of 1980, had hoped that the party in pocuer would bring about a drastic reform in response to this turning point in history, and to make possible a new development on the basis of the reform. I have been frustrated and irritated by the almost total failure of the government and its party to respond to this challenge following the election. The rea- son is, ever since I became a politician, I have seen with my awn eyes the un- changing philistine attitude of the LDP in its political management~ _ The constitutional debate sparke.d by Justice Minister Okuno, which became an issue in the postelection Suzuki cabinet; the problem of interpreting the three antinuclear principles relative to the pros and cons of port calls and pa.ssage through territorial waters under present inte rnationai conditions; the con- = fusion arising from the interpretation~ of the U.S.-Japan "alliance" in the - joint statement which was signed by the prime minister himself; the adminis- - trative reform which was tentati.vely effective in bringing about a zero ceiling in this year's fiscal budget, but which has subsequently shawn signs of taper- ing off; especially the major overhaul of the totally dilapidated National Railway Sytem, which not only is the greatest minus factor in Japan's gavern- ment and finance, but could also adversely affect the spiritu~z] health and = judgment of the masses; and the futile controve rsy in the budget committee this year over the remodelling of the F-4 jet, which was an apprQpriate medium for the dispersal of previous deceptive notions concerning self-defense-- despite the fact that these are all more or less equally crucial issues sur- roundir.g the nation's fate, and even today when their political coefficients have clearly changed in comparison to the points in time when their seeds were planted or were first brought to attention, the government has not rendered any statement or manifested any attitude which would contr.ibute favor ably to - any solution or progress of the issues in terms of the interest of the nation and the people. The views expressed by the government have been absolutely stupid repetitions of past p~actices~ , 20 FOR OF~7CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R000540070028-9 FOR UFFICIAL USE ONLY They are apparently unabl~ to see the steep and treacherous incline of the _ stagea in hi.story whicn they themselves have climbed. They barely see the _ individual steps, fiont and back--i.e., tf~e budg~;t cycles--and do not bother to stop and look back at the steep steps they have climbed or are about to climb. With regard to the normalization of Japan-South Korea relatione, the U.S.- Japan security pact, etc., the I~ P formerly resorted to free-for-all fighting,,. adoption through steamroller tacCics, and unilateral adoption in the unain Diet sessions. Moreover, only a minority of the people today criticize as wrong those choices which could only have been made by such methods. The opposi- tion also submitted numerous proposals of non-confidence, criticized the slow pace of the administration and conducted nonstop deliberations for as many as _ 4 days on end, late into the nighto To that extent, at least, the people focused their attention on politics. Toc~ay, hawever, neither the ruling _ party nox the opposition has such volition or energy. When did such rigidity = and secrecy begin to set in into real politics, alienating the people? It = probably began under the ruie of Prime Minister Sato, who boasted of his long- = reigning government. Mor eover, the cl:ronic and endless decline of the LD P pro- - ceeded parallel with it. It seems ttaat, after the previous general election, the seeds of the key _ political issues pl;iced on the agenda were sawn mostly during the Sato era. Witness the establishment of the peace constitution, wtiich was repeatedly men- - tioned by Prime Minister Suzuki in the same wo.rds. Witness his atatement - that "no constitutional reform y~ill be contemplated during my term af of- _ fice"; the three antinuclear principles which were actually two antinuclear principles according to its rhetoric; the coldblooded abandonment, during , parl:y Presi3ent Isozaki's era, of support for the National Railway's move- ment to increase productivity for fear of a strike, resulting in the National Railw3y's ruin and decline; and witness the foolieh attemgt to decrease the capability of the F-4 planes which were bought at high cost. - Of course, Prime Minister Sato did have a political goal to which he gave high priority--that is, the return of Okinawa. For its early return, regardless of the costs and apparently denying himself any thought of a wider r~nge of choices and with surprising casualness, Prime Minister Sato ignored the im- portance of all other political issues. His merciless curt dismissal of all cabinet members who caused problems was described as "the cutting off of the lizard's tail." Probably in his view even a single mosquito which disturbed the issue of Okinawa's return was cause for anxiety and could not be spared. Seeds Sown During Sato Era - At the time, I made an interpellation befoie the Budget Cou�nittee af the Upper House regarding Prime Minister Sato's attempt to establish the three anti- r?uclear principles by accepting the broad interpretation o= the opposition. I stated that the denial of port calls and passage through territorial waters and the renunciation of the "manufacture, possession and entry'~ of nuclear weapons was typical Japanese jibberish which ignored the strategic and tacti- cal principles of, self-defense; that it would result in a serious disaster under certain conditions in the future. I incurred the wrath of Prime 21 FOR OF'F~CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2407/02/09: CIA-RDP82-40850R000500070028-9 FUR OFFIC[AL USE ONLY Minister Sato. As I recall, the prime minister said: "What do you mean by _ jibberish? If you don't lilce it, you can leave the party." As long as~such an obstinate "conviction" on the part of the prime minister was based on his desire for the return of Okinaraa, the party probably really had no alter- _ native but to quietly follaw suit. Nonetheless, the seeds of the three antinuclear principles, which have gained attention again recently, and the bombing equipment problem concerning the F-4, we re indeed sown during this era. It is unbelievable that even today, when the international situa.tion surround- ing Japan has changed drastically, the government's position on these issues remains unchanged. _tegarding the port calls and passage of nuclear weapons- - carrying warships, Prime Minister Suzuki replied at the outset as a mater of course: "We will deal with them on the basis of reality." It~was probably an honest reply based on the fact that the political coefficients had changed since the Sato era, or it was the hackneyed phrase used by politiciana who are not knowledgable about the circumstances involved. Ironically, however, fram . the standpoint of those who were well-advised, it was a very appropriate state- - ment. However, extremnly absurd views which were counter to the common~ense of Prime - Minister Suzuki--a man of co~mmonsense who was not an expert regarding such is- sues--had been pursued as policy throughout the years, beginning with the Sato era. The superficial newspapers pointed this out and the government hastily compelled the prime minister to retract his statement. If the prime min- ister's advisers had backed his very practical vaw to "deal with the situ- = ation realistically," there might have been some debate, but it would have resulted in a re~urn close to the direction af commonaense. However, politics - emphasizing the supremacy of Diet policy forced a compromise for the sake of maintaining a pacified Diet policy. . Despite the U.S.-Japan security pact, there is no right on Japan's part.to search U.S. ships entering Japanese ports, and if we consider the case of the Soviet nucl~ar submarine which had an accident in the vicinity of the Nansei - Islands and pushed its way through our territorial waters despite warnings from the Japanese side, Japan does not have the power to check or prevent the passage of nuclear weapons. If that is so, the problem of port calls and free passage under the three antinuclear principles is actually a hollow is- - sue. Also, while the United States and the Soviet Union are 1~ughing behind our backs, the United States, an ally, carries on a dialog as to whether or_ not it will bring in nuclear weapons~ Therefore, the Question is why such a hnllow issue is so important. Such ~ deception could grRa'tly impede the proper awareness of the people who must support political ct:oice~ when they count. Moreover, this could beco~e a great strategic advantage to the Soviet Un3.on, an adversary. In fact, the - Kremlin immediately responded to an antinuclear manifesto issued by Japanese literary figures and called for strong support of the three anti- nuclear principles. A political principle which does not recognize port calls and free passage for the ships of the United States, an ally, would clearly be advantageous to the adversary from both the strategic and tactical 22 FOR OFFIC[AL USE O1VLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02109: CIA-RDP82-00850R400540070028-9 _ FOR OFF'[CIAL iJSE ONLY - standpoints if it were to be actually enforced. Even though we are aware that it is a hollow issue, some people in Japan would use it as a pretext to accuse the government and the United States, which would become a minor but effective factor in bringing about political confusion. In any case, failure to deal with reality and continuing the lies and nonsense which originated more than a dozen years ago would only result in benefitting the adversary. It is said that as long as it is within the time limit of its mandate to rule, _ the government could successfully deceiva the people. There is arrogance on the part of the bureaucr~3ts who say, "Let the people come to us," and pre- - sumptuousness in their ~~~iew that there would be no time to argue the pros and cons of port calls and free passage in the case of a showdown. At the same time, they say there may be no chance of it coming to a showdown. As ~ae _ wrote in this magazine the other day, it is a baseless optimism which in fact comes from a typically Japanese world outlook based on insular self- _ righteousness. In fact, the chief cabinet secretary clearly stated that there is some per- _ ception gap between the United States and Japan concerning the Soviet Union. And at a public hearing in the U.S. Congress, former U.S. Ambassador to Japan - Johnson referred to the statement and clearly testified that the ultimate - cause of the crisis in U.S.-Japan relations lies in a perception gap between the two countries regarding the Soviet Union. _ He was probably referring chiefly to awareness of the Soviet military threat, which constitutes the greatest factor in present international politics, in- - cluding the defense problem. Hawever, there has been no tangible explanation by the government concerning the difference in perception and, first of a11, = there is no reason to expect Japan to have its own information or analysis which would be the source of such a perception gap. From the standpoint of preserving U.S.-Japan relations amid the friction centering on several issues, = if there is a perception gap between the U.S. and Japanese Governments concern- ing the grave question of a Soviet threat, then the Japanese side should pre- sent its views and propose a debate in order to overcome the gap. However, that does not seem possible. Typically vague Japanese statements are made for the sake of preserving U.S.-Japan relations, and still a perception gap is ad- - mitted to exist. - His dissatisfaction with the procedures aside, Prime Minister Suzuki person~ ally signed the recent joint statement expressing satisfaction with the con- tents. Meanwhile, the cabinet spokesman admitted the existence of a per- ception gap between the two nations regarding the Soviet Union. Which is _ the government's true opinion? If the gap is not crucial to the government, it should, as the U.S. side has frequently pointed out and Japan has agreed, _ assume its "fair".share of the buxden for its awn security within the frame- _ work of retaliatory strategy by the free nations. Before the percentage of the GNP as allocation for its defense budget or the number of new planes for purchase are ta be discussed, a"fair" share of the = burden can only be realized amid the present international tension, to which 23 FOR OFFtC1AL USE ONI.Y APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 - FOR OFF[CIAL USE ONLY the Soviet threat is a main contributing factor, by rejecting the habit of seek- ing help from others on defense--a habit which was understandable under past international conditions when Japan did not have its present world status--ar.d by shedding the bas~less optimism rooted in that habit. But first the decep- tion:which pern?itted the existence of those factors must be removefl. Incidentally, the government's words and actions concerning the modification _ of the F-4 fighter plane, which recently elicited a fierce debate in the Diet, merely added to the clearly erroneous government view when it became an is- - sue during the Sato era, or rather to the unquestionable deception without any attempt to correct it. The F-4 issue is actually not limited to the - strategic value of t'ie fighter-bombero The debate between the government and = the opposition over the plane symbolizes the strange and dangerous idealism - which has prevail~d in postwar Japan and which is present in the "peace con- stitution." It also symbolizes the empty rhetoric based on unrealistic poli- tical rules which prevail only in Japanese politics and the detriment to the - national interest which is fostered by such rhetoric. Otherwise, it was a - great opportunity to stem the negative trend and to restore a sound policy. Absurd F-4 Debate The Defense Agency attempted to increase its defense capability as demanded - and concurrently to cut its spending in various areas to conform with admin- istrative reforms. By equipping the previous second-lir~ F-4 fighter with modern electronic instruments and devices, it planned to increase its longev- ity as a self-defense weapon from the original 3,000 hours to 5,000 ho~ s - (about 10 years in real terms). By recycling obsolete equipment, as it were, it contemplated its inclusion in the defense power buildup plan. The F-4, costing 3.8 billion (yen) per plane at the contracting r~int in FSj-77, was _ trial u~nufactured at a cost of 1,33 billiori (yen) in F'Y-81 and again at a cost of 8.496 billion (6en; in FY-82. After :~n.~icigat~ad results are con- firmed, it is planned to similarly modify the other F-4's in order to boost _ their capability and prolong their longevity. If the initial tri~l manufac- _ ture is successful, the cost of modifying the remaining F-4's beginning 3 years later with the second plane will cost no more than 1 billion (yen) per plane, an:i for certain types of combat it will have a capability equal to the F-1S fi.ghter. Incidentally, the cost of the F-15 at its contra~ting point in FY-82 was as high as 11.2 billion (yen) per plane. Although perhaps not equal to r_he - F-15, the 132 F-4's in Japanese possession could be seen as an investment with _ a very high rate of return. The modifications will involve changing the radar - system to add the capability to attack a low target in a low-altitude approach, - and adding a central computer similar to the one mounted on the F-25, thus increasing accuracy by replacing the simple, human-eye operated bombing sys- tem with a modern electronic device. The Japan Socialist Party (JSP) raised opposition to the proposal and the Diet recessed amid turmoil. From the standpoint of the JSP, which emphasizes unarmed neutrality--i.e., against the use of a single r~fle--the argument is that, for whatever reason, it is a breach of promise to suddenly reequip the F-4, whose electronic bombsight was removed because of a commitment made 24 ' FOR OF~'ICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 FOR OFF[CIAL USE ONLY during the Sato era, with the same device to improve its capability. The JSP considers it a deviation from the explanation made in the Diet. From the standpoint of the Defense Agency, it wanted to ask why the JSP was acting at this stage like it was half asleep, but it refrained. Instead, the agency explained that, in view of the general improvement of a broad range of weapons, the restoration of an accurate bombing capability to the F-4 does not pose the relatively aggressive threat to an adversary that it � did before. Moreover, the F-15, which is superior to the F-4, has subse- _ quently been purchased and deployed, so the agency assumed it was understood - that the basis for the F-4 threat had become relatively nonexistent with the change of times. In fact, the F-4 was not a threat during the Sato era. Diet member Oide, who made the statement opposing the reequipment of the F-4, also demanded removal of the bombsight from the F-15 as an excessive threat. _ The issue was skirted at the time with the statement that a repl.y would be forthcoming after a technical study was ma.de on the basis of an original pro- duction design. The JSP refused this time to be circumvented. However, was _ it necessary at this juncture for the government to reply to this kind of argument at the pace of the opposition? In doing so, hasn't the government _ tied its own hands, and isn't it bound to suffer a serious setback both ~tangibly and intangibly? .Truthfully, it i.s sophistry to argue in this age of rapid technological pro- gress that the F-15, which appeared several years �later than the F-4,~is a purely interceptor type considered inferior to the F-4 in its bombing cap- - ability. It would have been better not to purchase such a type of new plane. It proves that the debate in the name of Diet deliberation, using arguments which no one really believes, is conducted only for the sake of a low- dimensional "Diet policy" whose results and arguments of pro and con deviate from the real substance. Following Suit With the Fukuda Statement Following the uproar, I read the government's view which was made public on - 9 March, and was again disappointed. The gist of the government's explanation - was that the spirit of the statement by forsner Defense A gency Director Ma.suda--i.e., the basic policy of not possessing equipment presenting an ag- gressive threat to other nations--would be upheld. It also stated that, since the F-4 bombing device is no longer a threat relative to the improvement of capabilities in other weapons, the governmerit would proceed with its - scheduled plans. _ Since the deceptive statement which Director Ma~uda issued or was forced to issue during the Sato era has been upheld with another overlay of lies, the - government has planted and left the seeds for similar unproductive debate.to _ future generations. i~hat, then, are the lies and deception in the Masuda statement which the gov- ernment has recently upheld? First of all, what did the JSP mean by "an ag- - gressive threat to othar nations?" - 25 FOR AFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500070028-9 _ FOR OFFICIAL USE ONL'~ By other nations, at the time it meant the Soviet i`nion, China and North Korea. ~ Today, China would be excluded. By "thraat" it meant that the principal cities of those nations would fall within the fli~;'~t range of the F-4 or F-15. However, aside from reconnaissance flights, any ?:'::~.cl of plane would have to be equipped for combat in order to present a threat~ 'I'he F-4 can ordinarily carry eight 500-pound bombs, but with such a 1~::~: its fligk~t range would be _ 250 nautical miles one way even in a beeline 'r.o~.:,r.dtrip flight. If so, it - could not reach any of the cities in the aforementioned nations, even from = domestic bases in Chitose, Misawa, Koma.tsu, Tsuiki, Nyutabaru and Nahao Therefore, the JSP attacked the Defense Agency;on the basis of a hypotheticall,y - reduced load of four bombs in ordsr to increase the flight range, and the gov- ernment responded in accordance with that hypothesis. Data is available on a map which was often displayed at the time. It is a - linear map with a radiu~ of 400 n~utical miles one way for an F-4 carrying four bombs from principa.l bases in Japan. Actually, an accurate radius of - . 400 nautical miles ~aould not encompass Shanghai, Pyongyang, Vladivostok or Khabarovsk. - Nonetheles~, the Masuda statement implies that those ci~ties would fall within - the flight range of an F-4 carrying a half load of bombs. - The argument seems to be that even if the F-4 were to reacl-~ those cities, it would not be equipped with a central computer for pinpoint bombing. There- fore, it would not go on any raid which might prove useless, and if it were not equipped with the device it would not become a threat. Even a child would - laiow, in this day and age, that a strategic or tactical threat is not such a simple matter. Strictly speaking, a military threat is based not only on the quality, quan- tity and capability of military equipment, but foremost on the intent behind = ~ their use. Without quoting the example of constitutivnal constraint, it is clear that Japan has neither the intent nor necessity to invade and attack those nations. - As proof, one can look at the fligYit squadrons of Japan's .Air Self Defense Force and see that there isn't a single attack squadron. They are all inter- ceptor squadrons. - In contrast, the division-size troops deployed by the U~SR in recent years on the four northern islands are excessively large to be justified as so- _ called "defense of the islands (Who on earth are they goin g to defend the is- lands against--the islands they seized from us?)." Also, qualitativel.y speak- - ing, their landing hovercrafts are nothing but aggressive infiltration wea- pons suited to Japan's topography. On the basis of these facts, we cannot _ help deducing their intentions and as a result Qense a strong threat trom _ them. - Such appropriate debate on the essence of a threat was never brought to the fore by the government at the time. And even today, when the brazen ~ 26 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02109: CIA-RDP82-00850R400540070028-9 - FOR OFF[CUL USE ONLY deployment of heavy fighting pawer under the Soviet world strategy has been confirmed on the four northern islands, why doesn't the government attempt . to conduct a fundamental dE~bate regarding such defense problems by centering on the F-4 issue? Furthermore, what was meant by the threat of the F-4 at one point was none _ other than the F-4's bombing capability compared to othex weapons. That is why the gov~rnment recognized the F-4 as a plane with a more variable pur- p~ose than the F-15. Therefore, the nuclear bombing capability, which is the F-4's real threat, could be nullified merely by removing the nuclear control system, and the F-4 should not became an issue aven though it may be equip- _ ped with a gauge for bomb:.ng purposes. , Nuclear Weapon No Rival bf Tyranny - The ~reatest decegtion of the Masuda statement lies in the fact that while advocating pure self~defense and procurring equipment for that purpose under heavy cost, the government has fallen prey to laud and unwarranted criticism - from the opposition and, without thinking of the various possibilities for Japan's self-defense in an emergency situ~;.tion or without referring to it ~ even if it did, it. has only made compromises. = Of course, the .7apanese islands are narraw in shape, but they are lengthy in distance. The distance from Wakkanai to the Yonagunijima I~lands at the _ ~~uthernmost tip of Okinawa is 3,200 kilometers or about 1,800 nautical miles. If a large-scale invasion should be made directly against Japan, the islands could easily be split in two. If one were to hypothesize defense combat supgort under these circumstances, it would mean in extreme terms that the capital area (Tokyo) or even Hokkaido would have to be defended by air combat units stationed in Naha. Half of the entire length of the Japanese islands = would be 900 nautical miles. None of the fighter planes or fighter bombers used by Japan as interceptors could amply cover this distance. If planes - capable of protective sorties from Naha to Tokyo, and from Komatsu in the Hokuriku region of the Tohoku region and Hokkaido, were to be selected, the opposition would again undoubtedly draw radical lines with their compass and cry "aggression." Considering only the F-4 or F-15, from a strictly tactical aspect of Japan's _ self-defense, studies should be made to extend the flight rante of existing - planes incZuding the use of in-flight refueling systems. - As a result, even if the planes at hand should have the cruising capability _ to reach some foreign areas, they would not in the least constitute a threat hy Japan, which could not possibly entertain such an intent. If foreign - countries should be concerned about such a capability, it would not extend - beyond a deterrent capability. ~ At one time in the secret chamber called the D iet--whether or not it was for the purpose of paving the way for the return of Okinawa--enormous national funds were invested to purchase fighter planes. Regarding those planes, argu- = ment for the sake o� argument was used, calling them a threat to peace or to 27 FOR OF'F7CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 - FOR OFF[CiAL USE ONLY - pure self-defense and using words for their awn sake whosec:true meanings were - incomprehensible. It resulted in a bizarre conclusion, and a quite common question was asked among the people who observed this from a distance: "How - could our nation be protected with weapans which present no threat to any un- known nation?" From the standpoin*_ of th~ perception of the masses, taking the trouble to dismantle a computer for accurate bombing from a fighter bomber - purchased for defense purposes and depending solely on the pilot's intuition, _ which could prove to be unreliable, wo~ild be as frustrating as adjusting and lowering the speed of a new ly�purchased car to a level which meets standard - regulatians--although the present driving regulations do limit speed. One may argue that they are two different matters, but if the speed limit for cars _ is for personal prot.:ction, the high capability cf weapons is also for per- - sonal protectiono , Although it may sound like a play on words, if the capability is of the ad- versary's attention, i*_ would serve as a deterrent as long as there is no in- - tent of aggression on our part. It only becomes a threat when the intent is altered. Many Japanese who have the bad habiL of viewing things in a narrow sense, from only one aspect or with inflexibility, cannot comprehend the organic and complex functions of deterrFnt powero Often, when in passession of a certain amount of power, they could only visualize the military effect resulting from the actual use of that pawer. To be able only to think in terms of actually - using deployed weapons is like being born to poverty, or it is sheer impetu- - ousness. Half of the efforts, including the money spent, would then be in _ vain. Not only in the area of military affairs involving the use of weapons but : also in the area of foreign diplomacy through the use of language, and especially in the area of international political strategy involving the use of both, isn't it custamary to use various tangible and intangible ruses, in- cluding bluffing, before the actual clash? Or to bargain and maneuver on the - side, or to compete with each other? For example, there is within the retaliatory political strategy evolved by the Reagan administration vis-a-vis the Soviet Un3.on the view that a limited war is possible. The real purpose is not so much the meaning of the words per se, - but the anticipated effect of the pronouncement of those words on the aver- sary. However, the Europeans whose theater is the target naturally feel anxious and protest. Fully expecting this, the European governments never- theless support the U.S. strategy, which is an example of the intric~cies of str~tegic maneuvering. The Japanese seea to forget that where there is ten- sion, there is naturally an adversary. Diverting somewhat from the main subject, the antinuclear campaign, which naturally arose in Europe, has spread to Japan. The Kremlin immediately re- sponded to an antinuclear statement issued by a group of Japanese literary figures, sending a reply in the name of the secretary gener.al of the Soviet Communist Party and calling for support of an unprecedented three antinuclear prinaiples which exist in no other country. It promised that to that extent _ 28 FOR OFFiCIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007102/09: CIA-RDP82-00850R000500070428-9 FOR OFFICIAL. USE ONLY : the Soviet Union would not attack Japan. Do those people who call for the suppo.rt of rhe communique actually understand the intent of the Soviet - Union, which is not involved in the three antinuclear principles? The 75 - SS-20's, which are placed near La.ke Baykal and pointed taward Japan and _ China, are equipped with megaton nuclear missiles which could destroy all of Japan. Those who cannot see them, or who close t:heir eyes to what they don't know, surely cannot claim to haye the power of calm persuasion. The antinuclear campaign, which spread to 3apan as I had feared, developed in the torm of strict observance of the three antinuclear principles. It - went further and developed into a call for opposition to the U.S.-Japan . security pact. In anyone's mind, nuclear weapons are naturally fearsome and foolish. However, in order to prevent those politically immature - leaders of the communist society from committing destruction and to bring _ them to the discussion table to point out their losses or gains, the anly = way after every effort has been~ exhausted is to use the warning effect of a possible limited war, and in the meantime to produce similar weapons in quantities equal to that of the adversary. In effect, the United States, , which controls the world whether we like it or not and which decided to re- arm in order to prevent a holocaust, knows the dynamics of political strategy, being well aware of the huge and wasteful cost. We should also be aware of such dynamics in order to prevent destruction. _ Both nuclear and conventional weapons kill great numbers of humans and have done so in the past. Today, people are tr gnbling in fear of a crisis in which further large-scale massacres will be committed. We must not forget that, in the Soviet Union which has almost single-handedly brought about such a condition and is an immature society despite its enormous power, actually more people than nuclear weapons could kill are being buried alive under a warped and deeply deluded ~iic!-atorship. ~~varenass of such conditiona _ depends on whether one considers a man's freedom more important, or the value _ of a man's life. There is no free man who doesn't fear and hate nuclear arms. Ho~wever, the - evasion of nuclear weapons must not be linked to unchallenged permissiveness of murder in disguise through the deprivation Af political freedom. Philistine Politics Could Ruin a Nation I am afraid that an idealistic and impulsive political movement is again about ' , to occur in Japan which could strangle the freedom af the peopZe. I believe _ the politxcians themselves should realize that their form of politics in re- fusing to examine their awn lies and deceptions concerning the F-4 or the three antinuclear principles, and their philistine concern rPgarding their self- preservation, are fostering such a danger. - = Now that I am a politician, I feel able to understand better, but when I saw the demonstrations among you~g intellectuals in opposition to the unilateral passage of the 1960 U.S.-Japan security pact in the Diet develop in a short time into an antisecurity pact movement, a number of us who were sympathet- ically involved left the movement. Jun Eto recently wrote about his awn similar experience. _ 29 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2407/42/09: CIA-RDP82-04854R004504070028-9 FOR OFF[CiAL USE ONLY - At the time, the chairman of the Japan Writers and Artists Society asked prob- ingly at the board meeting after the day~s meeting had ended: "There is a strong movement in society opposing the security pact, so what do you think about us drafting an antipact resolution, too?" Whereupon the naw deceased Shiro Ozaki and Fusao Hayashi both countered: "We are for it. But why are you fellaws against the pact" We would like an explanation." The~chairman _ could not reply. Tlie meeting adjourned without any solution, and there was no further mention of the subjecto It seema to me like an almost pathetically - comic episode. Meaciwhile, Prime Irlinister Kishi unilaterally pushed the pact through the Diet and provoked criticism even within the ruself heard~thet it eventually won support from the nation. At the time,�I my _ chairmen of the ruling and opposition parties support the pact. It was�the first time such an event had occurred in Japan. I recall being surprised _ that Prime Minister Kishi, whom I disliked for no other reason except that he was a former war criminal, showed excellent persuasion in his argument. On the other hand, Kishi's brother, Prime Minister Sato, cou3,d be said to have conducted a form of politics during his ru2e which was ~n a sense the - opposite of his brother's. It was after the return of Okinawa when the university disputes were at their peak. Prior to the opening of the Diet where great controversy over the university legislation and health insurance reforms was anticipated, Chief Cabinet Secretary Hori, in accordance with Prime Minister Sato's wish, invite@ several literary figures including my- self, who was also a member of the Upper House, to ask our opinions. At the = time, I recalled the impression I had received of Prime MinisCer Kishi on - television during the 1960 security pact debate, and made a request regarding the prime minister's government policy speech. Mr Hori tentatively agreed: _ "That's a very good idea. Hawever, he Iater retracted: "No, I don't think we should. If we do, I'mt'afraid the Diet debate will heat up." His words probably reflected his concern about the character and basic political posture of the prime minister whom he served. My rebuttal, that the people w ill not focus their attention on nor be enlightened by any debate which does not heat up, was in vain.. Because of the persistence during the Sato era regarding the return of Okinawa, the recurring Diet deliberation on the subject r::~slted in weeding out such disturbing practices as free-for-all fights, all-night debates and steamroller passage of resolutions in the Diet. Hawever, amid the ostensible tranquility and quiet, there was no telling how many importan* political ttiemes - failed to receive proper debate and to be shielded from the people. As a re- sult, the people were deprived unnecessarily in both a material and spiritual sense. Amid great changes in the political coefficients concerning issues, it is a~ hisCorical necessity to der3ve proper conclusions through appropriate deliber- ation and debate. To ignore this and to idly follaw the political posture of - the past is apt to result in a loss to the nation which is far greater than it - was at the point in time in which the action took place. - The prime minister, above all, and all politicians should refresh their minds _ to the fact that, unless we once again review such outdated and distorted 30 I FOR OF'FICIAL U3E ONLY - APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 FOR OFF[C1AL USE ONLY issues as the three antinuclear principles and the F-4 problem, and unless we fall into proper step, not only the ruling party but the nation and the _ people will also come to ruin. The politicians and the people who observe the political scene should heed - the words of Chigaku Tanaka: "Stupidity ~~ithout evil thoughts" can thought- lessly invert the order of a political theme and its method, and result in destroying a nation. It only pursues self-preservati~n and indolence, and is fastered within a philistine brand of politics which is d~void of true courage. COPYRIGHT: 1982 Bungei Shunju Ltd. 5884 CSO: 41U5/88 z 31 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 FUK Uh'h'IC:IAL US~: UNLY SCIENCE AND TECHNOLOGY - GOVERNMENT, PRIVATE, ACADEMIC BIOTECHNOLOGY EFFORTS REPORTED DNA Experiment ~uideline - Tokyo NIflON KOGYO SHIMBUN in Japanese 10 Feb 82~p 4 [Interview with Professor H. Saito, Institute of Applied Microbiology, Tokyo . University (Science and Technology Agency Expert Co~nittee member) by T. Inemori, NIHON KOGYO SHIMBUN Osaka office) [Text] Leading Technology Using Genetic Recombination, Cell Fusion-- Spurred by Relaxation of DNA Experimental Guidelines Recently, biotechnology has been in the limelight. It spread mainly in the United States and Europe as a leading technology using genetic recombination and cell fusion. - . It involves a broad field, from pharmaceuticals and food, to chemicals and~energy. In Japan, MITI incorporated it ~ in the "Next Generation Basic Technology Development Pro- - ject" which be~an in 1981; and in the private sector, the ~ Federation of Economic Organizations established the "Life Science Committee," with the participation of ~any cor- porations, including the energy-re2.ated industry, and lively activity is in progress. In particular, the strin- gent Japanese recombinant DNA (deoxyrib~nucleic acid) - experiment guidelines were drastically relaxed recently through revision by the Science Cauncil of the Ministry of Education, which has spurred research and developffient. - In addition, from the academic standpoint, the "Inter^3- tional Symposium on Applied Microbial Genetics" will be held in June this year for the first time in Japan at the Kyoto International Hall. The symposfum is being held on . - recombinant DNA techniques in broad f ields ranging from ~amino acids to energy, and approximately 1,200 participants will gather from specialized fields in Japan and abroad. Therefore, we interviewed Professor H. Saito of the Insti- tute of Applied ~4icrobiology, Tokyo University (a member of the Science and Technology Agency Expert Co~nittee) - regarding problems in biotechnology involving goverimnent, the problems in biotechnology involving government, the private sector, and academic institutions. 32 - ~ FOR OFFICIAI, USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 FOR OEFICIAL USE ONLY Ten Firms Leading in the Pharmaceutical Area [Question) What headway, in particular, is being made in DNA (deoxyribonucleic acid) research, a technology to open the 21st century? Saito: Interferon. Specifically, DNA synthesis is being carried out for hor- mones by Suntory with the guidance of Dr Nakanishi of Kyoto University. Manag- ~ ing director Noguchi and others are working with beta-lipotropin. Wakinaga is also working on it. Others ir~volved include Toyo Rayon, Kyowa Hakko, Green Cross, Simmi.tomo Chemical, Kanegafuchi Chemical, etc--soffie 10 firms are in leading positions. [Question] Including the late starters, more than 70 firms are working on it counting just the members of the Federation of Economic Organizations. What = do you think about this situation? Saito: They are engaged in textbook technical acquisition. For interferon, - some of them recruited Itakura's students and are busy acquiring practical ~ techniques. Even then, because of the narrow area, there is also the problem of too many corporate laboratories being involved. Setting the United States aside, there seems to be a critical attitude in Europe, especially in England and France. However~ when i visited Europe last fall, some in England were - very eager, and in France, the government is taking the lead in working on it. [Question] The groundwork for research and development lies mainly with the - pharmaceutical manufacturers, does it not? Saito: That's because they are equipped with research structures that are = not of a conventional pattern, but are compatible with advanced amino acid mass culture and the antibiotics era. They have been working by means of - gene splicing or cell fu~ion to improve the ability of a type of fungus that ~ resembles Actinomyces bacteria. : [Question] What about related areas? Saito: In Belgium, a herbicide has been developed by genetic recombination of plants. This is not a conventional syn.thetic herbicide; it was made by remov- ing a nontoxic gene. It is attracting attention as a partner in labor-saving agriculture and as having an antiseptic effect. ~In addition, alcohol synthesis = based on the same principle is also being considered. This will, however, take 5 more years looking at the prPSent state of technology. Also anticipated are petrochemical plants utilizing petroleum reactions at norcnal temperature and normal pressure as well as highly efficient refining in the mining industry. Petroleum Development by Making Fatty Acids [Question] Rather than processes, for example, is energy such as petroleum conceivable? Saito: Petroleum is a reduced form of a substance that makes fatty acids. Therefore; theoretically it is fully feasible by making the fatty acids. Fatty acids can be made by extensive genetic recombination. It will require much more sophisticated biotechnoi-,aical techniques. It will probably take 10 more years. 33 = FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R000540070028-9 FOR OFF[CIAL USE ONLY [Question] What about petroleum coat by then? Saito: Considerations are based on the premiae that it will be three times the current price. Petroleum development will have the effect of reversing this coet. Cetus, backed by oil companies in the United States, obtained a patent - for a process to manufa~ture ethylene, etc, by inducing enzyme reactions. Its cost accounting basis is set at 3 years hence with the p.remise that the price of oil will double by then. Speaking of oil prices, the United States suffered from a gasoline shortage in 1979, and cars lined up at gasoline stations on the West Coast. I was staying in the United ~tates at the time and understood their feeling well. There, voices were asking for gasoline prices to be raiaed rather than having tc+ line up, and the price of 70 cents ~wnped to $1.40. It was a realistic solutinn and no complaint was heard. Thus, the incre~se for oil will probably occur at an unexpectedly fast pace. We should not fall behind overseas countries in petroleum development using gene splicing or cell fusion. - If we do fall behind, it's important to catch up immediately. Government Should Take the Initiative in Mass Development [Question] I understand. But are Japanese corporations thinking that far ahead? Saito: In their current condition, they haven't got extra force to spare. Following the past pattern, they will make a connection immediately with pharma- ceuticals, choosing those that have high added values with small quantity. Cost accounting comes first, and Chis makes things difficult. Since this is directed toward large quantity rather than small quantity production, the governaient-- for example, MITI or the Ministry of Agriculture, Forestry and Fishery--should take the initiative. [Question] What about their administrative guidelines? Saito: The authorities concerned are the following five ministries: the Science and Technology Agency, the Ministry of Education, MTTT, the Ministry of Agri- culture, Forestry and Fishery, and the Ministry of Hea1Ch and Welfare. The first guidelines were announced in March 1979 by the Science Council of the Ministry of Education, followed by an announcement and notification by the Science and Technology Agency through the government's advisory organ, the Council for Science and Technology, in August of the same year. Aside from DNA experiments, MITI, for example, initiated a 10-year "Next Generatio~ Basic Industrial Technology Research and Development Basic Program" and began devel- opment of recombination and application techniques in FY-81. Among the various agencies, there are aspects that differ from each other, and their coordination, - which is now being handled by the Science and Technology Agency, is important. _ [Question] Recently, the Science Council of the Piinistry of Education took the initiative, in its interim report, to relax the recombinant DNA experiment ~ guidelines, which are said to be the most stringent in the world, to the , European-American level. Any opinion? Saito: Tne "subcommittee" compiled the revisio n proposal and publicly announced it. The Counc:Ll for Science and Technology, which stipulates the guidelines, will also study them and is likely to announce them in early FY-82. 34 _ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 FOR OFF[CIAL USE ONLY The donors may be handled at the Pl level, and some that are associated with experimental facilities can be handled at the P2 level; and two- to three-step relaxation (from P3 and P4) compared to the present guidelines will take place. However, on the other. hand, new rules are included as to the handling of new microorganisms produced by recombination. In this respect, it may be said that the contents received full consideration. Naw, the research structure of t~ie concerted government and private efforts wi11 be greatly accelerated. jQuestion] In the ~rivate sector, President Suzuki of Mitsubishi Chemical is fervently carrying out the activities of the Federation of Economic Organiza- tions; and collaborative arti#icial DNA development by the brewing and pharma- ceutical industries is attracting attention. Any thoughts? Saito: It is interesting that they have each gone beyond the other's franne- - work. Especially, in the comaaittee of the Federation of Economic Organiza- tions, firms other than life science concerna are also included, which I think will help in formulating the technological groundwork. Regarding artificial ~ DNA, a broad area from interferon, insulin, to amino acid trimmers has been targeted. I'm lookin~ forward to their achievements. Situation Very Similar to Penicillin Development [Question] It is said that the biotechnology rush is very similar to the time of the penicillin development. Is it? SaitA: During the 1948-1949 penicillin boom after World War II, approximately 70 firms appeared. After a while, those which survived included only Takeda and three others which were in mass production at 10- and 20-tons, and the rest stayed at the test-tube f acility stage producing 4 or 5 tdns. Mass pro- duction from fungi entails restrictions as well, and they fell behind in tech- nical and cost-accounting aspects. However, most of the 70 firms in this re- - search development acquired the basic knowledge regarding the genetic movement and culture~of microorganisms and tied it to the later mass production and dis- tribution of amino acids and antibiotics. The penicillin preparation from fung~ was not in vain by any means. The same can be said ab~st biotechnology. The genetic technology that has been established by approximately 10 firms at present will spread to 20 or 30 firms. However, even if firms are weeded out later, there will be some technology where their DNA work will be useful. Even if they don't achieve an energy source such as petrolewn, tY~ere are broad areas ranging from pharmaceuticals to food and petrochemicals. ~ jQuestion] What is the situation oversea~, especial.ly in the United States? Saito: Among the numerous venture businesses, Genentech is well known. It has grown more than 10-fold, from a staff of 23, 4 years ago, to nearly 350. Cetus Corporation is also engaged in a broad area of reaearch and development ranging from pharmaceuticala to chemical processes, food, and energy. In addition, Proiessor Kornberg (Stanford University), a Nobel laureate for gene- . tic research, ~oined DNAX and ALZA as a research consultant and is engaged in the development of inanune drugs. As is seen in these examples, they are aombi- - tious and there is a several 10-fold difference in research funds and 100-fold - in research staff. Basic biotechnology research has become a regular part of 35 . FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 FOR OF~[CIAL USE ON~.Y biology programs in U.S. universities, and numerous research institutes exist. In general, I believe that Japan is 3 or 4 years behind. In application, there are some that are more than competitive with a few products such as i.nterferon, hormones, etc, but the difference is due partly to the delayed experimental guidelines, etc. However, when it cc~mes ~o mass culture and market development, the Japanese senses are fully ac~tivated, and they are fast in reaching a reason- - able level. Especi.ally in private~industries, I think their response is quick once they see the prospect for coiamercializatian. - First Symposium ih Japan To Be Held [Question] La.stly, ? wouYd like.to ask you about the "Fourth International Symposium on Applied Microbial Genetics" to be held in Japan for the first - time. ~ - Saito: That meeting will be hel.d in Kyoto in June of this year, and Dr Y. - Ikeda, professor emiritus of Tokyo University, is the chairman of the organiz- _ ing committee. Symposia have been held twice in Europe, once in the United - States, and this is the first time in Asia. I am in charge of program formula- tion (chair~an). We are incorporating sub3ects such as amino acids antibiotics production, yeast breeding, genetics of food and energy production, recombinant DNA mudification, etc. As of now, we are expecting participation by 37 coun- tries attended by approximately 1,20~ exp~rtis from both at home and abroad. With the relaxation of guidelines, the environment is ripe in Japan, and I hope many will participate in the symposium. COPYRIGHT: Nihon Kogyo Shimbunsha Tokyo Honsha 1982 Four AppliGations of Biotechnology Tokyo NIHON KOGYO SHIMBUN in Japanese 10 Feb 82 p 4 - [Text] Recently, in industrial circles, interest in the life science has rapidly increased. Originally, life science was a comprehensive science in which the mysteries of life were sought, and it included academic fields such as biology, physiology, biochemistry, medicine, pharmacology, ecology, psy- - chology, etc. However, as a result of progress made in molecular b3:ology in - which the phenomena of living organisms are studied at the molecular level, biological functions have been elucidated, which has opened tl?~ way for appli- - cation in industrial and technological aspects. That applied technology is ~ "biotechnology." Research and development in this aspect began following the _ ~ eludication of the molecular structure of DNA (deoxyribonucleic acid) in 1953 by Watson and Crick, barely 30 years ago. Subsequently, in 1973, genetic recombination (recombinant DNA) experiments were conducted for the first time in the world by Cohen (Professor at Stanford University, U.S.A.), 8oyer (Pro- - fessor at University of California, U.S.A.), and others, resulting in a rapid development. Bas,ic and applied research are being advanced mainly in the United States. Biotechnology is generally defined as "the technology in which the life phenomena operational in living organisms are elucidated to be utilized in - 36 ~ . FQR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 - FOR OF~~ICIAL USE ONLY solving various problems related to human life ~r in producing useful sub- = stances"--in short "the applied technology of biological. functions." In other = words,,it may be referred to as the technology that incorporates the principles ~ of life phenomena inherent in all living organisms on earth such as metabolism, immunity, proliferation, movement, etc, in~~o the category of applied "engi- = neering." Specif ically, it can be roughly divided into the following four techniques. - (Recombinant DNA Technique) = The technique, literally, involves the recombination of DNA which carries bio- - logical genetic information by using enzymes, etc, and growing the living cells into which genes of different kinds o~ org~nisms are freely inserted. Tt is ~ playing the leading role in biotechnology. The culture cells (host cells) used include yeast and Bacillus subtilis in addition to Excherichia coli, which has - a high growth rate. This method enables the mass production of useful sub- stances which was not previously possible due to restrictions such as material, etc. Research in the pharmaceutical area is in the forefront; techniques to manufacture insulin, interferon (I~N), growth hormone, vaccines, vitamins, amino acids, etc, were developed, and they are now in trial stages for practi- - cal application. Not only pharmaceuticals, but heat-stable ~nzymes with the prospect of wide application in areas such as industrial processes and food technology can also be produced by ~his technique. Tts importance is immense since it becomes related to technical development in various areas of biotech- . nology. (Mass Cell Culture Technique) - A technique to obtain useful substances efficiently and in large quantities by mass-culturing animal or plant cells in large quantities that produce useful substances including various kinds of enzymes, physiologically active sub- stances, ete. This technology is indispensable in propagating microorganisms ubtained by gene splicing or new cells created by cell fusion. This technique is being tested for the cultivation of IFN, urokinase (thrombo- lytic agent), etc. However, a difficulty in commercialization e.Yists in the - fact that fetal calf serum, which is expensive and difficult to handle, is being used in the cultivation mediiun. In order to effect efficient cultiva- tion, other artificial media or serum-free cultivation is necessary, and the task is to develop them. - (Cell Fusion Technique) - A technique to fuse cells having different advantages to create new eell types (hybridoma) having the advantages of both cells. As opposed to genetic recom- bination using lower living organisms such as microorganisms as sub~ects, - this technique attempts to recombine entire rather than partial genetic infor- _ mation by adhering cells of higi~er living organisms. It is highly practical in plant and animal breeding. It is a well-known fact that tihe Max Planck Institute in West Gex~qany used this technique to create the "pomato," a mixture of tomato and potato. In = 37 FOR OFFICIAL bJSE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2407/42/09: CIA-RDP82-40850R000500470028-9 FaR OFFICIAL USE ONLY ,Japan, the Gifu Prefectural Agricultural Experimen~al Station succeeded in _ producing "Hakuran," a"mixed breed" between cabbage and celery lettuce; and = the Japan Monopoly Corporation succeeded in producing interspecies hybrids ~ between its cultivated species of leaf-tobacco "tabacum" species, and tobacco- mdsaic resistant "rustica" and "repanda" species. The merit is in the short- ened time required to create a new breed of agricultural crops that took 6-7 years previously by alternation of generations, etc. - On the other hared, in the medical field, transformed l~nphocytes and lympho- cytes with antibody production ability can be fused to create antibody- ~ praducing cells with proliferation ability, which can be cultured to make an - antibody with high precision (monoclonal antibody). The monoclonal antibodies currently being used as diagnostic agents are being isolated from animal blood, and being restricted quantitatively, this technique will open the way for mass production. It will not remain as an immunodiagnostic, but there is a strong . possibility that it will lead to immune therapy in such areas as cancer, allergy, etc. . ~ (Bioreactor) It is a technique of industrial application in vitro of chemical reactions and substance metabolism being carried out in a living body using enzymes as ~ catalysts. It is also called a"microbial application reactor" or a"bio- chemical reactor." The chemical industry heretofore generally used metal - catalysts under high temperature and high pressure for chemical reactions - to produce the target substances. As opposed to this, a bioreactor is a system to manufacture useful substances under normal temperature and normal pressure by using useful microorganisms and enzymes rather than metal cata- = lysts. It is an energy-saving, resource-conserving, and nonpolluting process. When this is realized, huge plants, etc, will become "white elephants." Thus, the interests of various chemical companies are strong. Both domestic and _ foreign corporations are positively advancing the research. Cetus in the United States developed a manufacturing process for ethylene oxide and propy- lene oxide using a fermentation method and is testing for practical applica- tion in a pilot plant. The problem is that the enzymes are very unstable, dnd while they demonstrate high activity in living cells, they totally lose activity outside. Thus, the - task is to immobilize enzymes in a form that maintains its activity, is insolu- ble in water, and is readily usable in industry. I~obilized enzymes are the - target; and when this technique is established, it will probably revolutionize th~ chemical processes such as continuous production. In addition to the imuno- bilization of enzymes, important points are finding and modifying enzyme sources in microorganisms and the development of thermophilic microorganisms that do not lose activity at high temperature. = Ranging From Pharmaceuticals/~'ood to Chemicals/Energy --Enthusiastic Pharmaceuticals Industry With a"Dream" Anticancer Drug As explained above, biotechnology is applicable in many areas such as pharmaceu- ticals, food products, chemical industry, energy, etc, and it also has depth. _ 38 _ FOR OFFlC[AL iJSE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500070028-9 FOR OFI~ICIA1. IISF. ONLY In the pharmaceuticals area, it is no longer a dre~u to develop a~enetic recom- bination technique for Actinomycetes that produce antibiotics and the develop- _ ment of antibiotics that distinguish normal cells an3 bacteria and kill only = bacteria. Prospects ~.n the agricultural field are the development of crogs - that do not require fertilizers by directly splicing into the crop plants the genes of atmospheric nitrogen-fixing bacteria (Rhizobium); and in the energy - area, plant breeding for biomass applications and the modification of microor- _ ganisms for alcohol production, etc; Ieading corporations of the world are in furious competition. - With European-American firms taking the lead, centered in the United States, Japan fell far behind. However, the Japanese firms are now spurring their - research and development and are catching up. Biotechnology-related ~enture businesses were established in England and France by goveriunent and private joint effort. On the other hand, the Japanese Goverrnnent, which fell behind in ~etting started in the aspect flf forming a national support structure, has embarked on building a foundation for research and development and is demon- strating ambitious movement by forming government and private collaborative projects with the motto "catch up, get ahead." t~irst, in the pharffiaceutical area, most of the leading drug manufacturers such - as Takeda Chemical, Green Cross, Shionogi & Co, Fujisawa Pharmaceutical, - Daiichi Seiyaku, Sankyo, Chugai Pharmaceutic.al, etc, have begun research. In - particular, Takeda Chemical, Green Cross, and Shionogi & Co are very active. _ However, research in biotechnology is not limited to major manufacturers. A ~ pharmaceutical manufacturer of inediinn standing, Wakinaga Yakuhin, succeeded, for the first time in the world, in the synthesis of "secretin," a gastrointes- tinal hormone that inhibits secretion of gastric juice by a gene splicing technique using E. coli. Ringen Biochemical Research Laboratory, which estab- lished a unique technique of producing IFN (alpha type) using hamsters, is in _ the process of developing a carcinoma breaking factor (CBF) with a new phisio- logic.activity in a joint study with Mochida Seiyaku. It is a type of lympho- kine which is produced along with interferon from human lymphoblasts obtained by mass culture (Ringen hamster technique). In ani~al experiments, data indi- ~ cates that it directly kills cancerous cells while having virtually no effect - on normal cells. Further studies may still be necessary regarding the mecha- nism of the action, but it has a high potential as a prospective anticancer drug. In addition, it i_s said that the ser~ substitution factor "CMA-1" which was extracted from cholera, a unicellular green alga, aiZd developed by - Kurorera Kogyo, can replace 90 percent of the fet~l calf serw~n used for media, - and it is noteworthy as a substance useful in mass culture of IFN, insulin, etc. General chemicals firms and petrochemical firms are also leaning strongly to . biotechnology. In the process of transformation of corporate makeup from general-purpose chemical products and basic chemica-1 products to fine and - specialty chemicals, they are advancing research and development by making - biotechnology the nucleus technology for the next generation; and they are = busy consolidating the structure. Mitsubishi Chemical develaped restriction enzymes that play an important role in genetic recombination. Tt also dis- = covered extrachromosomal genes, plasmids, of E. coli and yeast, and applied 39 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500070028-9 - FaR OFFICIAL U5E ONLY , for several patents on ~e preparation processes. While forming a consistent _ joint research structure with its affiliated company, Mitsubishi Chemical Life Science Research Institute, it is also involved in monoclonal antibody work with an American venture business, Hybritech Corporation, and plans to supply diagnostic drugs. Thus, it is developing research in a wide range fram gene- tic engineering, cell fusion, to bioreactors. Tn particular, it contemplates placing emphasis on the development of resource-conserving, energy-saving chemical processes. On the other hand, Sumitamo Chemical has newly estab- lished a biotechnology research team to strengthen the research organization, and at the same time, a Pg level experimental facility will be comgleted soon to bui13 up the structure ac'the Life Science Research Laboratory. In addi- tion, a purification plant for IFN-alpha will be completed this summer with technical importation from the Wellcome Corporation in England, and will start toward practical application. In addition, Mitsui Toatsu Chemicals made a technical agreement with Genex for manufacturing urokinase by genetic manipulation, and is planning to venture into the pharmaceuticals area. Mitsubi.shi Petrochemical, Shoa Denko, Daicel Chemical, Asahi Chemical, Toyobo, etc, are also engaged in biotechnology with a forward posture. ~ The food industry, having traditional strength in the use of micraoxganisms, - is not merely standing by helplessly, either. Along with Ajinomoto, which has - succeeded in the mass production of an amino acid, threonine, by breeding in E. coli, competing firnts are Meiji Seika which is aiming at antibiotic produc- tion from enzyme research to seed bacteria business,~and Suntory, the Yakuruto head office, Nisshin Flour Milling Co, and Sanraku Ocean which are contemplat- ing joining in pharmaceuticals, among others. - Nisshin Flour Milling Co, along with Green Cross, Earth Seiyaku and Chugai Pharmaceutical, had their staff attend the Genex seminars on genetic recombina- tion techniques which started on the 7th, and began to mobilize for technical acquisition. Kao Soap, Nippon Oils and Fats, and Miyoshi Oil and Fat are all conducting research geared to biomass. In the area of genetic engineering alone, in excess of 100 firms have made themselves heard. With leading trad- ing firms making a move for technological intermediary, the industry is in a feverish state indeed. However, even the so-called "modern-day magic" biotechnology cannot be devel- oped by a fluke. It takes a long time to develop into merchail.'.ise, and the risk entajled is also great. Investment in basic research is also limited in private enterprises. Needless to say, it should be undertaken as a national - project with a concerted national effort. Serious Growth Effort Also by the Government Based on these viewpoints, the government is also responding to the interna- tional technological competition era, and has ranked biotechnology as a lead- ing technology for the new generation along with ceramics and new functional polymers, and has begun working for its growth by investment earmarked in the - national budget. This is the "Next Generation Basic Technology Development - System" started by the Industrial Science and Technology Agency of MITI in F'Y-81; rhe development will be promoted by investing a total of 104 billion 40 FOR OFF[CIAL U~E ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040500070028-9 FOR ON'N7('IA1. USF: OlV1.Y _ yen in the lU-year plan. Out of this, 31 billion yen is estimated to go into biotechnology. Already secured are 670 million yen for FY-81 and 1.04 billion - yen for FY-82. The "Biotechnology Development Technical Research Association" (director: E. Suzuki, presid~nt of Mitsubishi Chemical), which will become the nucleus for technical development, has also been inaugurated; it includes - 14 firms and has liegun research activities in the respective subject areas. _ Gene splicing technique was assigned to Sumitomo Chemical, Mitsui Toatsu Chemi- cals, and the Mitsubishi Chemical Life Science Re~eaxch Institute; mass cell culture technique, to Asahi Chemical, Ajinomoto, Kyowa Hakko, Takeda Chemical, and Toyo Jozo; and bioreactors, to Mitsubishi Chemical, Kao Soap, Daicel Chemical, the Eleetro Chemical, Mitsui Petxochemic3l, and Mitsubishi Gas Chemical. They are to proceed with research and d~velop~ent by choosing pro- ~ects with high innovative characteristics. As if to respond to thLs move, starting in FY-83 the Agency of Science and Technology also plans to incor- - porate "Biological Information" among the targets under the title of "Creative Science and Technology Promotion System" in order to advance life science re- = search forcefully. In addition, 3-year research is being conducted starting - ln FY-81 on influenza vaceine and hepatitis B vaccine using genetic engineer- - ing techniques, and preparation is underway to construct a research facility = for gene splicing at the T~ukuba Science City. The Mini~try of Education and ttie Ministry of Agriculture, Forestry and Fishery are also promoting research - based primarily on their respective standpoints. With the practical applica- - tion of pharmaceuticals prodaced by biotechnology near at hand, the Ministry of Health and Welfare plans to evaluate not only the clinical trial of IFN, but also the method of clinical trials, the evaluation process, etc, and farrnu- - late a standard for approval of new drugs with a 3-year plan. Although their research directions differ slightly according to the various ~inistries, their ob~ectives are the same in that they promote biotechnological research and aim - for practical application at the earliest time. The Standard Research Laboratory in the United States cited biotechnology and ele^tronica as the biggest growth areas in the 1980's. According to the pre- , diction of an American survey firm, Sheets, Inc. [phonetic], the market scale - for producta by biotechnology in 1988-1980 [as printed] is estimated to be $27.1 billion (approximately b trillion yen) annuglly. In the ~urvey of Mitc~ui information devel.opment~ the market scale in tl~e year 2000 is estimated a[ 4.2 billian to 6.8 billion yen, and u market acale o� at lea~t 3 billion yen ie considered a certainty. The impact on industrial circles is indeed great. l~owever, there are also problems because of the magnitude. In the rusFi for deveLopment, the possibility of sloppy management cannot be denied. The prob- lem Q� bioettiics has already been pointed out. The need for proper regula- tions are obvious. However, too strict rules can hamper research progress. In Japan, guidelines called "Recombinant DNA Experiment Guidelines" were ~:stablished in 1970. However, due to the trend in the United States to relax regulations, strong voices have also been heard in Japan urging relaxation along thc same lines. Theae recently resulted in the interim report of the Sc:ience Council of Japan of the Ministry o� Education which proposed a dras- - tic relaxa[ion, and it is expected to be announced by early FY-82. The reason ia that in the United States, genetic recombination can be conducted in an 41 - FUR OFFICIAI. IISE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 HOR UFN'1('IAI. USF: ONL.Y - ordinary exper.imental laboratory (P1 level) when E. coli ia used, while the .Japaneae regulations are the most strin~ent in the wor].d today. Among the resenrchers worldwide, the ma~ority liold the scientific opinion that safety = is not a problem regarding the experiments in genetic manipulation themselves _ ff a proper sequence is used, and this point should be taken into considera- tion. However, on the other side, it is important to establish ~ researchers _ code of ethics, and a balanced operation will no doubt bring about the proper growth of biotechnology. - COPY~IGHT: Nihon Kogyo Shimbunsha Tokyo Honsha 1982 Active Enterprises in Western Japan Tokyo NI~TON KOGYO SHIMBUN in Japanese 10 Feb 8~2 p 5 [Text~ Business undertakings in b iotechnology are u~ore active among enter- prises in western Japan than in the eastern part. Full-scale clinical trials �or pharmaceuticals manufactured by gene splicing will begin in Japan this year, ~nd most of the druga were manufactured by western enterprises. At tt~e end oF this month, Shionogi & Co will begln clinical trials on humfln insulin produced by gene splicing in coli supplied by Eli ],illy of the United States. 'Ln addition, Sumitomo Chemical wlll also start clinical trials for a growth hormone produced by gene splicing in E. coli supplied by a Swedish - firm, Kabi AB. Thereafter, clinical trials for Takeda Chemical's interferon (IFN) is expected in the spring, followed by those for Green Cross's hepati- = tis B vaccine. The west~rn firms are currenti.y one step ahead. - In particular, the major drug manufacturers are enthusiastic about biotech- nology work. First, the two firms, Takeda Chemical and Green Cross are typi- = cal. Takeda Chemical is reportedly on.e of the early starters in biotechnology in Japan, including gene splicing, along with M3.tsubishi Chemical and others. = It has a large-scale P3 level f acility at the Central Research Laboratory in Yodo~awa-ku, Osaka, and is making steady progress in research. Regarding IFN, in particular, a prospective carcinostatic agent~ it has a technical agree- - mc~nt w1.th Nippon Roche, a Japanese subKtditiry of Roche, whtch ~cqutred the ~~:chn~lclue from tt~e ~~neCic engineerinq specialiFt Genentech in the United Stritc~s, und 1t Le hurrying with IFN-alphr~ development by gene aplicing of I:. call, lligh purily T.FN-Filpha t?as ~lready been praduced, r~nd it expect:~ to go intu c.l.inical tr.lnle ttiis sprl.ng. In nddition Co new drug developmentH using gene epltcing technique such as Ih'N-beta~ t~epatltia B. vaccine, etc, it has uppar~ntty undertaken biotechnolugy of ce11 culture, cell fusion, etc. On tl~e other hand, Green Cross is making a contrasting move. It has not been long since it began genetic recombination research, but it has actively made technical agreements with overseas manufacturers and has risen to the top of - the Japanese biotechnology firms. Beginning witti the importation in February of a technique for IFN-gamma using yeast from Collaborative Research Incorporated (CRI) of the United States and a tecl?nique to produce aZbumin using E. coli from Genentech o� the United = States, it subsequently imported~bacteriu for producing IFN-alpha and -beta uaing F. coli from Bristol-Myers Co of the United States. In addition, in 42 FOR O~FICIA[. USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 - FOR Ual~l('IA1. USN: UhLY _ Septerober it imported a manufacturing technique for hepatitis B vaccine using gene splicing from Biogen in Switzerland, while receiving the basic patent for genetic recombination held by ~tanford University in the United States, for the first time in the world. In the meantime, a move was made for capital in- _ vestment in CRI in the United States; its active technical agreements being made with overseas firms are attracting attention. - Moreover, it recently began independent research in genetic recombination and _ is developing IFN-alpha and a thrombolytic, urokinase, by gene splicing using E. coli, where it apparently has seen a prospect. In addition, it is advanc- ing research in biotechnology to collect ~tetanus immune globulin by cell _ fusion and has already completed production of hybrid cells, hybridoma. After _ eatablishing production techniques, it plans to begin clinical trials in 2-3 years. _ Shionogi & Co is now moving rapidly with genetic recombinatfon work. It will import and market in Japan human inaulin produced by gene splicing by the U.S. _ Lilly Company through tecY~nical agreement with Genentech. In addition, in _ Januaxy of ttiia year, it reached agreement with Biogen of Switzerland to com- _ mercialize human aerum albwnin by gene splicing. In the plan, albwnin produced - Uy Biogen will be commerc~.alized as early as in tl~e latter half of the 1980's. - Although it has not been announced, Fu~isawa Pharma~eutical has already estab- lished a research facility of about P3 level, and is apparently conducting _ basic research, also. Tt commented: "we cannot say what we will manufacture" (President T. Fu~isawa), but its interest seems to be as strong as that of - Takeda Chemical or Shionogi & Co. In addition, Tanabe Seiyaku is apparently studying the biotechnological area using the technique of immobilized microorganisms, which has already been put _ into practical application, rather than geneti~ recombination. Yoshitomi Pharmaceutical is also making efforta to develop new drugs since it estab- listied tha autonomous marketing system. As a part of this effort, it is direct- ing ite attention to biotechnoingy such as gene aplicing and cell fuaion and is sending staff inembers to res~arch organizations. Ono Pharmaceutical is also - showing basic interest. - DNA Syntheeizer--Prospect for New Market --MAS~; Yroductton P].ant Is Also lietng Studied Not only in Ll~e ptiarmuceuticals induytry, but many ctiemical companiea are - venturing into the biotechnology area. Swnitomo Chemical, which has a pharma- ceuticals business as well, is emphasizing life science since it began colla- borating with Wellcome of England and has embarked on the commercialization of _ interferon. Following the completion of a Pg facility in its Osaka plant, it al.so built a Pg facility at the biochemical research laboratory (Taka,razuka - city, Hyogo Pref.ecture). At this laboratory it organized a biotechnology team cor.sisting of some 30 staff inembers. For the time being, they will center = their work on techniques which have already been in practical application, suct~ as growth hormone, insulin, etc, and are planning subsequently to venture inta development of monoclonal antibodies by cell fusion. 43 FOR OFFICiAI. USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 H'OR ON'I~1C'IA1. USH: ONI.Y ~ Kanegafuc}ii Chemical TnluRtry compleCed a P3 level facility last year at its - Takaeago plant (Hyogo Prefecture) in an attempt to expand the pharmaceutical business with new techniques. Since the firm proudly possesses the world's leading techniques in fermentation and synthesis, it began to put serious = efforts into gene splicing using its achievements as the basis. Although it has not disclased what its targets are, it apparently plans to develop unique = products besides interferon by using biotechnology. = A top firm in the paint industry, Kansai Paint, is also showing its ambition in biotechnology by advancing the development of chemical products using the _ technique of immobilized enzymes. Daicel Chemical is also reportedly advanc- _ ing research with emphasis on bioreactors using the fermentation technique at its central research laboratory in Himeji city. Toyo Rubber Industry has apparently embarked on biotechnology research, a first in the rubber tire indus- - t.ry, using the technique of immobilized enzymes in which enzymes are sealed� into polyurethane resins which the �irm successf ully developed. Beaides the ptiarn~aceuticals and chemical industries, the textile industry, - mainl.y synthetic fi.ber manufacturers, are also eyeing Che growth in biotech- nology and are showing a strong interest in it. Toray began conducting inter- feron research early on along with Green Crosa. In October last year, it, along with Aaiichi Seiyaku, imported the cechnique for interferon-ga~mna which - uses gene splicing, and has ventured into the area of genetic recombination in earneat. Asahi Chemical Industry also completed a P3 facility last year, and started research on various new substances including interferon using gene splicing. Niearnahile, it has sent researchers to the United States and is - aiming for commercialization. _ In addition, Tei~in is also directing its attention to gene splicing as part _ of its phanmaceuticals business. Kuraray is also studying the use of gene splicing in pharmaceuticals and cltemicals. At Unitica, resea~ch on an ATP (adenosine triphosphate) reproduction reactor is being advanced, and using it as a lever, it plans to ~mbark on bioreactor development, an area of biotech- nology. Through such reaearch, it recently began marketing enzymes and plans _ ta develop bi.otectinology-related products sA a line for a nontextile business t~i tYic: near future. lUnung firme in the spinning induatry, Toyobo and Kanebo are active. Using the = enz,ym~ Cechnlque, wtiich t?ae been commercialized in part, Toyobo wishes to begin gene r~plicing reeearch, also; la~t year, even Stanford University came to offer - its gene eplicing patent. It has apparently found a prospect in developing = severa.t kinds of reatriction enzymes for cutting ttie DNA chains needed for _ gene ~plicing. lCanebo, noted for development in large-scale new drugs, does _ not show too much interest in the gene splicing technique. However, it has begun cell fusion reaearch, and future achievement is anticipated. In addition, among the vario.us industrial categories, Suntory, Takara Shuzo, Sun ~itar, etc, are outstanding. In particular, Suntory, led by managing director T. Noguchi, is demon~trating active movement. Using a rich research - etaff as a weapon, gene aplicing research is in progress at a rapid pace. _ La~t year, it succeeded in the artificial creation of alpha-neoendorphin, a physiologically active substance having analgeaic action similar to morphine. 44 FOIt OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R004500070028-9 - FOR OFFICIAL USE ONLY It has also succeeded in developing a carcinostatic aubstance by cell fusion technique and is also among the top group in interferon research and develop- ment. As a unique firm, Takara Shuzo may be cited. The firm is a leader in the pro- duction of sweet sake and shochu [distilled sweet potato wine], but it has domestically produced for the first time restriction enzymes which are essen- tial for gene splicing, and it has co~ercialized approximately 20 restriction enzymes. From the dentifrice industry, Sun Star has started biotechnology re- - search such as cell culture and cell fusion and is aiming for development of interferon and new substances. An insecticide manufacturer, Earth Seiyaku (head office in Sakagoshi, Akao city) ~ - is also showing great interest in gene splicing. In January this year, it sent development staff inembers to the gene splicing technique training course spon- sored by the U.S. genetic engineering specialist, Genentech. Since insecticides use organic compounds as raw materials, mass production by gene splicing is theoretically feasible as long as th~ molecular structure is known, and their future growth in research is regardQd as hopeful. Trading firms are also deeply interested in b iotechnology. Following Mitsui & Co and Nissho-Iwai, Sumitomo Sho~i recently ventured into biotechnology. It has a basic agreement to collaborate with Celltech, a semigovernment, semi- private venture business in biotechnology in England. It plans to sell Cell- - tech's cell fusion and gene splicing techniques to various firms in the future. In addition, Matsushita Electric Industry also discovered a new strain of ~ oxygen-resistant methane-producing bacteria, and it is aiming to develop and - apply it in a methane-production system and to develop a bioaensox using the immobilized enzyme technique. Cellular Engineering Center Announces Its Concept--Osaka University - Now, undertakings in biotechnology are not limited to 7aa~or corporatians, but = activity is also found among medtum-level firms. A typical example is Wakunaga Yakuhin (head office in Osaka). In June last year, news that it succeeded in - producing a gastrointestinal hormone, secretin, by gene splicing for the first time in Japan, created a sensation. Using the nutrient tonic Kyoleopin as the main ingredient, it directed its attention to gene splScing early and achieved _ the development under the direction of chief researcher M. Suzuki. Currently, besides hastening with the final work for the commercialization of secretin, it is aiming.to develop various new substances such as interferon, and it is actually competing with the top class firms in Japanese biotechnology research, leaving many ma~ar f irms behind. Like Wakunaga Yakuhin, Ringen Biochemical Research Laboratory (Okayama city) is also attracting attention suddenly as a biotechnology venture business.. - Using a unique method for mass production of interferon using hamsters, it is - currently conducting safety tests using animals in collaboration with Otsuka - Seiyaku and Mochida Seiyaku and will soon start clinical trials. An additional _ mass production plant for interferon is under construction, with a completion - = target for the end of the year. Whr ~;,ompleted, the current annual production - 45 ~ FOR OFF[CIAL USE ONLY - APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02109: CIA-RDP82-00850R040500470028-9 FOR OFFICIAL USE ONLY of 300 billion units will ba increased to 600 billion units/year. In addition, _ as a result of the increased facility, it is expected to establish a mass pro- duction sysCem for CBF (carcinoma breaking factor) which was successfully _ _ isolated in collaboratio.n with Mochida ~ei~atucollaborativetresearchrwithn� - - Furthermore, it concluded a deal to car y on research into Messerschmitt, a spacecraft manufacturer in West Germany, various physiologically active substances in space. Thus, it continues to _ _ carry out unique activities in the f ield of bioscience. In addition, in the area of biotechnology hardware, a noteworthy firm is M-S Kiki thead office in Osaka city), w~hWhiCh isrt eicore ofdthe genest oAsathe leading apparatus for synthesizing ~ become active, the gene splicing research o.f various f e~d tolexpandain the future, and it is demand for a DNA synthesizer is e.~cg - li~Cely to become a prospective new market. _ As stated, many western Japanese firms are actively engaged in biotechnolo$y. - Meanwhile, Osaka University announced the concept for a"cellular engineering center" l a s t y e a r i n a n a t t e m p t to create a center for life scien l a ~ t ss t og c o n lea ding te c h n o l o g i e s s u c h a s g e n e s plicing. At this center, i t p - solidate the foundation for molctedarcelllfusioncin whicheimmune c~ a ntibody n w here b r o a d a p p l i c a t i o n i s e x p e , forming cells are fused with proliferative cells for con duc t in g i m m u n o l o g i c a studies such as allergy, an d s elective insertion of chemical compoundslans to = drugs into cancer cells to at~o~aliareacofb4e300ssquare~meterseat the Suita - construct the center with . I campus after FY-83. As a result of such a positive undertaking through the concerted ef~ort of both = government and private sectors inooe~istantafutureewith theeEuropeanaand Ameri- shoulder to shoulder in the not t can firms which are now one step ahead. COPYRIGHT: Nihon Kogyo Shimbunsha Tokyo Honsha 1982 - Mounting Interests, Expectations Tokyo NIHON KOGYO SHIMBUN in Japanese 10 Feb 82 p 5 [Statement by E. Suzuki, president, Mitsubishi Chemical Industries, Ltd] - [Text] Last year,,an undertaking in the life sciences began with seargthat may - government, academic and private sectors respectively. It was a y be called the beginning of the life science years in Japan. Ir. industrial circles, we have a deep sense of responsibbli~eStondi~attotthese life sciences to the progress and growth of the saciety y P g issues with a firm posture in order for them to blossom as the basic material to support the next generation. . There are several factors in the background of the life sciences in which great - expectations repose today. In brief, however, it is due to the ~act that the _ 46 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02109: CIA-RDP82-00850R400540070028-9 FOR OFFICIAL USE ONLY _ material basis of life has been elucidated by rapid progress in molecular biology, and based on that knowledge, recombinant DNA, cell fusion, etc, have been developed as technologies, and possibilities have opened for their broad _ applications in industrial and medical aspects. On the other hand, as a re- - sult of the enormous consumptian of resources and the appearance of environ- mental problems caused by rapid economic growth, the building of a new tech- - nological system is eagerly a~taited by society. - Along with cantributions to medicine and biology as the basic science, the aspect of industrial technology (biotechnology) is attracti_ng the most atten- tion in life science. At the same time, it involves various problems of human society as well as problems of welfare and a value system. Consequently, it is desirable that life science be promoted widely based on the understand- ing and cooperation of the government, academic circles, and the general pub- _ lic. In industrial circles, also, it is necessary to respond to and have a promotional system not only in a specific industry but with a widely concerted effort of the overall industry. Fortunately, as we look at the member firms of the Life Science Committee of the Federation of Economic Organizations, the constituent fi~cros belong to diversified industries such as food, chemicals, pharmaceuticals, petrole~, textiles, ceramics, machinery, electronics, in- - formation, electric powe~, trading firms, financial firms, etc, demonstrating the extensive interest and expectations of industrial circles regarding this fj.eld. In the past, the Japanese research and development strucCure in this fl.eld was not always sufficient compared to that o� the Western countries. However, in the last year or so, the respanse of industrial circles has become parti- cularly positive, and the building of developmental systems based on the pri- - vate sector has been promoted positively, including the establist~nent of a biotechnology symposium by five chemical firms. The government is also taking various measures to fully utilize such vitality of industrial circles. - First, the Agency of Industrial Science and Technology of MITI took up bio- technology in the Next Generation Basic Industrial Technology Development Sys- tem with a budget plan of 31 billion yen for 10 years and started a research structure with the cooperation oi industrial, govertmnent, and private sectors targeted at three subjects: genetic recombination application techniques, bio- - reactors, and mass cell culture media materials. In response, 14 firms in the private sector such as chemical firms ~oined to establish a Biotechnology Development Technical Research Association. At the Science and Technology Agency, also, life science research was included in the C~-eative Science and ~echnology Research System, and efforts are being made to promote the research. - The fact that these new meusures have been initiated whi~e financial recovery is in progress is a welcome event fram the~standpoint of industrial circles as an expressi~on of the governmental policy emphases of Japan, which is destined to be a technological coun~ry. Thus, the developmental structure of the industrial, government, and academic sectors toward life science has been rapidly consolidated. However, in indus- trial circles, it is necessary for us to play the role of grasping the state - ox advancement in life science both at hame and abroad, and at the same time, 47 FOR OFF'ICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R000540070028-9 FOR OFFICIAL USE OiVLY _ undertaking projects such as proper formulation of guidelines for technical development and industrialization d~rected toward the healthy growth of this _ field as well as promoting cor.ect understanding for the broad society in - general, and furthermore, based on these, at promoting specific policies desirable for the country. Life science is indeed a technology directed to th~ 21st century. However, we must realize that it is no longer a dream or fantasy, but has arrived at the _ stage of practical application, and make efforts for forward-looking activities with a realistic attitude. COPYRIGHT: Nihon Kogyo Shimbunsha Tokyo Honsha 1982 7722 = CSO: 4106/i36 END 48 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500070028-9