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Extensions of Remarks October 11,, 1987 EXTENSIONS OF REMARKS 27931 EXTENSIONS OF REMARKS UNITED STATES-JAPAN RELA­ This happens, because each ministry is gards for the situation of our trading part­ TIONS FROM THE VIEWPOINT closely tied to its own industrial sector. In ners? OF JAPANESE MULTINATIONAL addition, every ministry has Diet members LIVE AND LET LIVE who, visibly or invisibly, wield great power. CORPORATIONS DOING BUSI­ These are called "Zokugiin" or Diet Interest In fact, once, it might have been a good NESS IN THE UNITED STATES Group. They are vocal in their own special thing to make quality goods inexpensively area, and their interest intertwines with and sell them overseas. But "no man is an that of the ministry. island." The human race is such that we do HON. NORMAN D. SHUMWAY not live freely by ourselves, but only OF CALIFORNIA Since each ministry is independent, its pri­ mary concern is to protect its own vested through our mutual relationship with IN THE HOUSE OF REPRESENTATIVES rights and interests. This also means that others. We must be more aware of the fact that we live by virtue of being "let live." Wednesday, October 14, 1987 private corporations and Diet Interest Groups have much control over the minis­ Consequently, we should not do anything Mr. SHUMWAY. Mr. Speaker, I recently had tries. that would jeopardize others. This new con­ the opportunity to participate in a seminar This explains why an agreement at the cept that the world must join hands to help sponsored by Johns Hopkins University on the national level may still face much opposi­ each other and coexist, is, in fact, an age-old issue of United States-Japan relations. The tion at the ministry level. There, the discus­ philosophy. It's time for our corporate man­ sions tend to degenerate to arguing over the agers to wake up to this philosophy and keynote speaker was Kazuo lnamori, chair­ start changing their ideas. man of the now-international Kyocera Corp. interests of the ministry, its group of indus­ THE UGLY JAPANESE His statement on the relations between our tries, and of the Diet Interest Groups that two nations from the viewpoint of Japanese control it. This also explains why our open The present problem of trade imbalance economic policy lacks in consistency and should be viewed in the same light. This sit­ multinational corporations doing business in why its progress is so sluggish. uation is becoming even more severe be­ the United States is both refreshing and chal­ OVERHAULING JAPAN, INC. cause of the vicious fight for market share lenging. I believe that Mr. lnamori's remarks The historical roots of this administrative among Japanese corporations. Enlightened are worthy of careful review by my colleagues, structure date back to the Meiji Reforma­ business leaders must surely see that this is and thus I am sharing them with the House tion when Japan's present government causing problems in our host countries. membership herein: Shouldn't we then adopt a more orderly, structure was formed. Its long history disciplined, and better-managed way to UNITED STATES-JAPAN RELATIONS FROM THE makes it difficult to changing it overnight. trade? "Free Trade" should not imply a VIEWPOINT OF JAPANESE MULTINATIONAL Nonetheless, I firmly believe that there is a "Free for all." Behaving in a self-willed, self­ CORPORATIONS DOING BUSINESS IN THE definite need for a radical, fundamental profiting manner has nothing to do with the UNITED STATES reform of this administrative structure. real meaning of freedom. <By Kazuo Inamori) Another consideration is that Japan has UNITED STATES-JAPAN TRADE ISSUES It is a great honor and pleasure to be in­ no policy-making organization that cuts vited to address your monthly forum of the across all ministries to set general and stra­ Concerning Japanese exports to the School for Advanced International Studies tegic policies. Rather, policies devised by in­ United States, America tells Japan that its of the Johns Hopkins University, the oldest dividual ministries become Japan's national non-tariff barriers, complex distribution policies. How can we possibly have a uni­ system and bizarre trading customs prevent research university in the United States. form consistent economic policy when each American imports from increasing in Japan. The topic I have been asked to address ministry decides its own policy and acts ac­ Japan, on the other hand, tells the United concerns U.S.-Japan relations from the cordingly! States that their import duties are lower viewpoint of Japanese multinational corpo­ What Japan needs is an exclusive control­ than any other country, that non-tariff bar­ rations operating in the United States. I ling body to deal with all ministries on a riers do not exist, and that the reason why would like to start with a general overview horizontal level, and one whose policies and America's imports into Japan fail to in­ of U.S.-Japan relations. interests are adhered to by all ministries. I crease is because America does not try hard THE AMERICAN CHALLENGES think that an administrative reform to enough. Japan also stresses that American In order to improve the trade relation­ create such a structure is necessary. studies in the Japanese language and in ships between the United States and Japan, It is certainly debatable whether this kind Japan's trading customs have not been suf­ the United States has been urging Japan to of reform is indeed possible in Japan or not. ficient. formulate and execute a new economic I am of the opinion that this is a problem It is clear that the two countries are fol­ policy as quickly as possible. that has to be solved. lowing two completely different tracks. Twice in our history, Japan had to carry SING A SONG OF FREE TRADE LEARNING CURVE THEORY out changes in our major policy with re­ At the same time, the traditional manage­ I am inclined to think, however, that this spect to foreign affairs. ment thinking in industry must be changed. problem has arisen due to differences in ex­ The first of these was 120 <one hundred Traditionally, the majority of Japanese cor­ perience and in the duration of effort spent and twenty> years ago at the time of our porate managers have been firmly con­ by the two countries. Meiji Reformation. The second was at the vinced that the best course of action is to The U.S. market opened up after the war conclusion of the World War Two. Both oc­ manufacture quality products at low cost and has remained open for 40 years. Japa­ casions called for drastic changes in our gov­ and export them. They, therefore, deeply nese companies have been able to study ernment policy. If Japan is to carry out a believe that "free trade" must be advocated. ways to enter the market and accumulate major policy change now, it will be the third However, just ten years ago, Japanese gov­ know-how through this experience. such historical event. ernment was still laying down various regu­ But Japan's market did not open until THE MYTH OF JAPAN, INC. lations restricting the activities of foreign about 10 years ago. The U.S. simply has not There are various reasons why Japan is, at corporations within Japan. These restric­ had enough time to study the Japanese lan­ this time, reluctant to adopt a completely tions on "free trade" helped the growth of guage and Japanese trade customs, or tore­ open economic policy. In my opinion, the domestic industries. Japanese industries search our complicated distribution system. major problem lies in the administrative grew very strong thanks to these protective As we can see from this history, American structure of the Japanese government. regulations. companies are handicapped by their limited In trying to formulate a policy to ease the Now that Japanese industries have grown period of preparation. In order to redress trade friction between the United States to be globally competitive, we are removing the trade imbalance, Japan must do more and Japan, the situation often arises that, our protective regulations, and demanding than simply open its markets. There will be despite consensus on a national level, each that other countries do the same. Isn't it no equity reached on this score soon unless ministry gives priority to its own interest strange how we have suddenly become an Japan takes measures to provide American and may refuse to grant approval. avid advocate of "free trade"-with no re- companies with access to Japanese markets e This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. 27932 EXTENSIONS OF REMARKS October 11,, 1987 by reaching out and literally handing the and over 2,000 American employees. I would Because of these dedicated efforts, the market over to them. now like to share our experience and ad­ social status of Japanese Americans im­ FREE TRADE THEORY dress a couple of problems that may arise proved after the war. But, it was not until again as many other Japanese corporations very recently-40 years after the war Of course, there is nothing unfair about enter America. ended-that the problem surfaced and the letting America's exports to Japan increase As many of you know, we have come to American Government officially apologized by relying on the mechanism of free trade the United States to engage in the produc­ to the Japanese Americans of that time. alone. However, my thought is that, in the tion of ceramic packages for semiconductor LET US NOT REPEAT THE SAME MISTAKE light of past difficulties and the overall ICs.
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