PLAN FOR JAPAN LOANS TO US FIRMS ADVANCES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83M00914R002400010044-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 20, 2016
• Document Release Date: February 27, 2007
• Sequence Number: 44
• Publication Date: July 22, 1982
• Content Type: OPEN SOURCE

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Mainichi Daily News
Thursday, July 22, 1982
lan 'For Japan
Loans To US
Firms Advances
A Proposal by a Japanese-
American business magnate to
extend'- low-interest Japanese
loans for businesses approved
by U.S. state governments to
help revitalize the American
economy is expected to make a
major headway.
. Kay Sugahara, chairman of
the, U.S.-Asia institute who
made , the ; proposal,. is .: now
visiting Tokyo for, , full-scale
negotiations:., with, .Japanese,
banks. ..:
Likewise, William Piez, U.S.
economic ministe1' ,. at A he:
American Embassy in Tokyo,
has negotiated with "Finance
Ministry officials at the request
of senators'and governors
of various U.S. states.
The plan, ' called "Partners in
Progress," involving.-Japanese
Dietmen of the ruling Liberal-
Democratic Party, is an m i-
proved, version of Sugahara's
proposal for a, $10 billion fund to
help solve Japan-U.S. economic
frictions, made at a meeting of
U.S. state governors last Febru-
aryy
Already,: applications' to
finance : an estimated 500
business programs worth $50
billion from various states have
been received. Sugahara's
institute will screen them prior
to starting negotiations.
Motoo Shiina, an LDP Diet-
man instrumental in the
promotion of the program, has
high hopes for the program in
the hope to shore up the U.S.
economy which, he said, would
favorably affect the Japanese
economy.
Overseas demand for yen-
denominated Japanese loans
have been further increased
since the Finance Ministry ,in
May abolished a restriction that
allowed low-interest Japanese
loans only to official agencies
and organizations related with
energy.
Isaji Tanaka, chairman of the
LDP's Policy Affairs Research
Council, also , supports the
program from ' the viewpoint of
helping to , 'solve the ;trade
frictions.`-
In , April, Zentaro ` Kosaka,
chairman of LDP's Foreign
Affairs Research Council, made
the similar proposal in a speech
at the Japan Society in New
York.
According to Sugahara, U.S.
.government agencies concern-
ed have agreed to guarantee the
proposed loans.
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The Japan Times Saturday, July 24, 1982
Japan Bank Said
Eyeing U.S.
Loans
The Associated Press
A major Japanese bank is
considering the possibility of
extending low-interest loans to
job-creating programs in the
United States - an idea
proposed -earlier this year by
American-born millionaire Kay
Sugahara, a government
member said Thursday.
Motoo Shiina, a Diet member
belonging to the ruling Liberal-
Democratic Party, said in an
interview with The Associated
Press that "Sugahara's
financing plan just got off the
mark ... a Japanese bank is
interested in channeling money
into the United States to help its
economic recovery.
a.. key.,... figure, -.in'
promoting the. Plan called
"
IPartners in
Progress,"
I declined to identify the bank,
but said it probably would form
a bank syndicate to support the
loan project.
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 Er %T?dtF rM@PSgc?rQ07172Ait19? RW A 14 R002400010044-1
Nihon Keizai 7/21/82
"We would like to have the advice and support of the Japanese Government
for the Japanese low interest loan to the U.S. business sectors to help
increase employment" - such letters have reached Ambassador Mansfield
at the U.S. Embassy in Tokyo from several U.S. Senators.
This was to promote the proposal by an American businessman, Mr. Kay
Sugahara, last February, followed my Mr. Kosaka of Foreign Affairs
Research Council in April, who proposed the. Japanese loan to the U.S.
The U.S. Embassy in Tokyo will forward the U.S. request to the Foreign
Office and ask for their support.
What Mr.. Sugahara.proposed was the $10 billion "revitalization fund"
for U.S. economy. Kosaka proposed "Japan/U.S. Economic Ally Fund".
Both of these proposals were intended to invest our low interest fund
to the U.S. business which will in-turn contribute to the,(unemployment
problem in the U.S., thus helping to resolve the economic friction
between the 2 nations.
This has raised great interest within the U.S. The National Governors
Association has begun preparations to accept the proposal and several
hundred projects have been sent. to the'NGA office. The U.S. Government
also showed positive attitude to support?'this proposal when USTR Brock
stated in April, "It would be great if this proposal is finalized."
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However, on the Japanese side, so far there has been no positive approach
at the public financial level. The Japanese Government is showing
negative attitude since "if.we further accelerate the trend of outflow
of funds to the U.S., the devaluation of yen will not stop."
According to some source, several Senators wrote to Ambassador
Mansfield stating, "This is on a private to private basis and not
a government level project but we hope to receive the advice and
support of the Japanese Government. Is it possible to approach the
Japanese Government so to start the machinery moving?" The U.S. Embassy
has already passed this message to the Ministry of Foreign Affairs and
will. be approaching the Ministry of-Finance.
On the other hand, on the 20th, Mr.. Sugahara has met officials of our
financial circle but can this proposal,which is highly anticipated as
a countermeasure for Japan/U.S. economic friction,'_be realized?
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