JAPAN HIGHLIGHTS: JULY 1985

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T01058R000201740001-2
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: December 22, 2016
• Document Release Date: October 8, 2009
• Sequence Number: 1
• Publication Date: July 24, 1985
• Content Type: REPORT

Approved For Release 2009/10/08: CIA-RDP85T01058R000201740001-2
Central Intelligence Agency
Washington, D. C. 20505
DIRECTORATE OF INTELLIGENCE
24 July 1985
Japan Highlights: July 1985
Summary
Over the past month the Japanese media have
focused on the government's efforts to put together
a program to open its markets. Press commentary
gave the tariff cut package, announced in late June,
only mixed reviews. With protectionist sentiment
building in the United States and the EC, Japanese
journalists are urging Tokyo to deliver a more
comprehensive program to benefit both Japanese
consumers and Japan's major trading partners.
Although the media and the public--which Prime
Minister Nakasone claims is his only weapon--support
the Prime Minister's market-opening measures,
reporters who cover the ministries continue to note
that he faces resistance from the bureaucracy and
Trade issues have dominated the press recently, with newsmen
highlighting foreign criticism of Japan's reluctance to open its
markets. A recent television special, for example, reported on
the British media's attacks on the "never yielding Japs."
Commentators have repeatedly warned that pressure on Japan to
improve market access for foreigners is mounting not only in the
United States, but also in Western Europe and the ASEAN
powerful interest groups.
countries.
This memorandum was prepared byl (Japan Branch, 25X1
Northeast Asia Division, Office of East Asian Analysis.
Information available as of 23 July was used in its
preparation. Comments and questions are welcome and may be
directed to Chief, Japan Branch, Northeast Asia Division, OEA, on
Approved For Release 2009/10/08: CIA-RDP85T01058R000201740001-2
 Approved For Release 2009/10/08: CIA-RDP85T01058R000201740001-2
25X1
Tariff Cut Package Disappointing
Editorials in the major dailies suggest that although the
tariff cut package announced in late June was "reasonable," it
would not have drastic and visible effects. Some trade experts--
including the Keidanren president--have argued publicly that
tariffs on all import items should have been cut and have called
for abolition of nontariff barriers.
Press reports point out that items of strong interest to the
United States and European countries, such as chocolate, dairy
products and narrow-leaf plywood, were excluded from the list.
Reporters have speculated widely on the omissions, highlighting
that the powerful Liberal Democratic Party (LDP) voting block
that represents the dairy industry clearly worked to protect the
domestic dairy farmer.
A recent television report also provided an expose on
efforts by the Union of Agricultural Cooperatives, the Chicken
Trade Association, and LDP lobbyists to protect Japan's poultry
industry. Some economists claim that tariff cuts on boneless
chicken could hit Japanese producers hard. Ninety percent of the
poultry meat sold in Japan is produced in Kagoshima. which LDP
Vice President Nikaido represents as a Dietman.
Action Program Hindered by Bureaucrats
Press coverage has closely scrutinized final planning for
the program of market opening measures to be announced by the end
of July. Over the past several weeks, commentators have deplored
efforts by the bureaucracy to block progress. Many commentators
see the process of deregulation, which will limit the
bureaucracy's administrative control over trade, as having a
greater impact on trade than tariff reductions alone. Those
journalists who cover the trade-related ministries have suggested
some bureaucrats are purposely sabotaging Nakasone's efforts to
open Japan's markets, and commented on the Prime Minister's
increasing irritation.
Press coverage of high-level Japanese criticism of and
contention over US policy has been noteworthy. In an effort to
expedite development of the action plan, Nakasone recently
chaired a series of joint meetings with members of the Cabinet
and concerned LDP committee members. According to reporters, at
one meeting Vice President Nikaido criticized Nakasone for
"catering to the United States too much" and Washington for
"making one selfish demand after another, and meddling in our
domestic affairs." The reporters also noted that during the same
meeting Executive Chairman Miyazawa and Executive Agency Director
General Gotoda criticized the bureaucrats for not taking the
initial steps toward reforming the standards and certification
systems necessary to achieve the action program. Gotoda also
Approved For Release 2009/10/08: CIA-RDP85T01058R000201740001-2
 Approved For Release 2009/10/08: CIA-RDP85T01058R000201740001-2
indicated that "as long as bureaucrats are unwilling to
deregulate import procedures, foreign countries will have
legitimate complaints."
Reporters who cover the Prime Minister claim that Nakasone
is personally pressing his Cabinet and LDP officials not to yield
to the bureaucracy and lobbyists. In an hour-long, nationally-
televised press conference on 4 July, Nakasone reaffirmed his
determination to formulate a "drastic" action program. Press
commentary, citing public opinion, is supportive and has quoted
top business leaders who back his decision to cut tariffs and to
untangle import controls. All media observers seem to agree that
strong bureaucratic resistance will probably slow implementation
of the action program, but they believe Nakasone has laid the
foundation for a reform of the Japanese market.
Approved For Release 2009/10/08: CIA-RDP85T01058R000201740001-2
 Approved For Release 2009/10/08: CIA-RDP85T01058R000201740001-2
25X1
Distribution: Japan Highlights: July 1985
Original - OEA/NAD/Japan
1 - C/OEA/NAD/Korea
1 C/OEA/NAD/STI
1 - C/OEA/NAD
1 - OEA Production Office
1 - D/OEA
1 - DDI
1 - NIO/EA
1 - C/EA/RR
1 - C/PES
1 - OCR/ISG
5 - CPAS/IMC/CB
1 - Donald Gregg, Office of the Vice President
1 - Thomas Hubbard, Department of State
1 - William Brooks, Department of State
1
1 - Byron Jackson, Department of Commerce
1 - Doug Mulholland, Department of the Treasury
1 - Glen Fukushima, Office of the USTR
DDI/OEA/NAD
/Japan/MM:mem
(24 July
1985)
25X1
25X1
Approved For Release 2009/10/08: CIA-RDP85T01058R000201740001-2