March 1, 1996
Published bimonthly by Japan Economic Foundation
Publisher: Masuda Minoru (Chairman)
Editor-in-Chief: Tamori Aichy (Executive Managing Director)
Managing Editor: Suetsune Takashi
The Journal welcomes letters of opinion or comment from its readers,Letters,including the writer's name and address,should be sent to:Editor,Japan Economic Foundation,11th Floor,Fukoku Seimei Bldg., 2-2 Uchisaiwai-cho 2-chome,Chiyoda-ku,Tokyo,100 Japan.Letters may be edited for reasons of space and clarity.

inputform

Journal of Japanese Trade & Industry is published bimonthly by Japan Economic Foundation, 11th Floor, Fukoku Seimei Bldg., 2-2-2 Uchisaiwai-cho, Chiyoda-ku, Tokyo 100, Japan. Tel: (03) 3580-9291; Fax: (03) 3501-6674. Annual subscription rates: All countries except Japan (incl. airmail postage) U.S.$65; in Japan (incl. postage) \7,200 (single issue \1,200). Subscription order (all countries except Japan) Maruzen Co., Ltd., International Division, Export Department, P.O. Box 5050, Tokyo International 100-31, JAPAN; (in Japan) Japan Trade & Industry Publicity, Inc., Toranomon Kotohira Kaikan, 2-8, Toranomon 1-chome, Minato-ku, Tokyo 105. Copyright 1996 Japan Economic Foundation. All rights reserved. Materials may not be reproduced without written permission.


EDITOR'S NOTE

4


TOPICS

4

Hashimoto Made Japan's New Prime Minister
JapanÕs 1995 Trade SurplusÑFirst Drop In Five Years


COVER STORY

8

Japan's Homework
The U.S.-Japan security system, the Northern Territories, and debate over constitutional revisions are among the various items of ÒhomeworkÓ that confront Japan. This article delves into the issues behind each of these questions and at the same time identifies steps that the recently inaugurated Hashimoto cabinet should take in dealing with these issues amidst increasing popular distrust of politics.

Standing at a Crossroads-Japan-U.S. Security Arrangement

8

by Sakanaka Tomohisa

Why Haven't the Northern Territories Reverted to Japan?

14

by Sato Kikuo

The Constitution of Japan

20

by Nakano Kunimi

Public Distrust of Politics and the New Hashimoto Cabinet

24

by Matsuyama Yukio


SPECIAL REPORT

28

AUTOMOTIVE NEGOTIATIONS
This latest installment in our series on the U.S.-Japan car talks introduces European and Japanese industry viewpoints and surveys the course the negotiations have taken from the reopening of the framework talks to the action brought before the WTO.

Bout over Trade Issues-What Have We Learned from the U.S.-Japan Auto Negotiations?

28

by Miyoshi Masaya

The U.S.-Japan Negotiations on Automobiles and Auto Parts:

29

The View of European Industry
by A.N.R. Millington¥ACEA Tokyo Office

Details of the Negotiations, continued

30

U.S.-Japan Framework Talks:
Car and Car Parts Sector


JAPAN EYE

32

At a Country Shrine
by Michael E. Stanley

JAPANOMICS

34

Is It Safe to Stop Worrying About Deflation?
by Hamano Takayoshi

GALLERY

36

Message from Iron: Wakabayashi Isamu
by Iseki Masaaki

FINANCE

38

Think Tanks Cautious on 1996 Economy

ANALYSIS

40

Whither APEC: Reflections on the Osaka Conference and the Future
by Goto Motoi
At the APEC meeting in Osaka in November last year the Osaka Declaration was adopted in support of an "action agenda" to liberalize trade and investments and the conference closed with an affirmation that specific liberalization programs would be decided upon at the next meeting in the Philippines. This article reviews the Osaka meeting and offers thoughts on the outlook for APEC.

FOREIGN BUSINESS

43

Foreign Telecom Firms Ring in Competition

by Hayden Stewart

FEATURE

46

A History of Industry in Japan
by Tsukamoto Takeshi

ON THE ROAD

49

Japan's High Cost of Living:
A Personal View
by Catrien Ross

OUTING

52

Hida Wood and Heritage
by Bill Tingey

TABLE TALK

53


OBSERVER

54

Decision Making and Implementation
by Robert J. Ballon

REFLECTIONS

56

Reading Out for Your Audience:
The Art of Effective Public Speaking
by Muramatsu Masumi

ECONOMIC INDICATORS

58


What's JEF
JEF HOME PAGE