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UNCLAS SECTION 01 OF 10 TOKYO 001742 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST 
DIVISION; TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS 
OFFICE; SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY 
ADVISOR; CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 03/31/06 
Part-2 
INDEX: 
 
 
 (8)  Is "Koizumi politics" helping widen social disparity? Osaka 
University Prof. Otake says, "No," while Kyoto University Prof. 
Tachibanaki says, "Yes" 
 
(9)  Leverage for Japan's space exploration as LDP eyes new space 
legislation for defense purposes 
 
(10)  Editorial: Administrative surcharges leniency system 
effective to prevent bid-rigging practices 
 
(11)  Growing Japanese economy (Part 2): Promotion of efficiency 
increasing domestic productivity again 
 
ARTICLES: 
 
(8)  Is "Koizumi politics" helping widen social disparity? Osaka 
University Prof. Otake says, "No," while Kyoto University Prof. 
Tachibanaki says, "Yes" 
 
TOKYO SHIMBUN (Page 3) (Full) 
March 30, 2006 
 
A debate is intensifying over the evaluation of the structural 
reforms Prime Minister Junichiro Koizumi has implemented to date. 
Has social disparity been widened over the past five years? The 
Tokyo Shimbun interviewed two academics about what Koizumi 
politics has created over the past five years. 
 
Fumio Otake, professor at the Institute of Social & Economic 
Research, Osaka University: Widening social disparity 
attributable primarily to aging population 
 
Interviewer: Katsumi Sekiguchi of the Political Desk 
 
-- Do you think the Japanese public is happier than they were 
five years ago, when the Koizumi administration made a start? 
 
"It is a rule of thumb that when the jobless rate goes up, the 
national level of happiness goes down. Although I can't tell how 
the public has felt over the past five years, the jobless rate 
has now dropped to below the level in 2003, when it was at its 
worst. So I can say the public is happier than they were at that 
time." 
 
-- Some people think social disparity has expanded. 
 
"True, income disparity has widened, but the cause is 
attributable to the growing percentage of aged individuals among 
whom there is a wide income gap in the same generation. This has 
nothing to do with the Koizumi administration. Some are making 
too much fuss, arguing (the disparity is expanding)." 
 
-- Well, why do you think many people feel the gap widening? 
 
"One reason is for the rise in stock prices and land prices in 
midtown districts. When their prices go up in anticipation of 
economic recovery, those who possess them see the value of their 
assets rise. But salaries have not been raised before the economy 
recovered, so there is time lag. This sort of gap (in assets 
between the haves and the have-nots) always occur during a 
recovery period of the economy." 
 
TOKYO 00001742  002 OF 010 
 
 
 
-- But there are entrepreneurs with a huge amount of assets, for 
instance, those who have been doing well in IT businesses. They 
are called "winners." 
 
"Such entrepreneurs had no opportunities to find a job as a 
regular employee (because of the slump after the burst of the 
economic bubble). So, they created their way of living by 
starting their own companies. They are not the real winners. The 
winners are permanent employees who form a majority of workers. 
There is a gap in young people between regular employees and 
'freeters' (who do not have a permanent full-time job but live by 
having one or more part-time jobs or become job-hoppers). But 
this gap is viewed as being exception." 
 
-- Why do you call regular employees the winners? 
 
"During the hard times for college-graduate job-seekers since 
1997 until just recently, many young people turned into freeters. 
If companies had continued the new hires of college-graduates, 
the disparity among young people would not have emerged. However, 
regular employees were advocating the logic of the strong to 
protect their position, arguing, 'Instead of cutting wages, the 
company should hire part-timers.'" 
 
-- Do you think the disparity between permanent employees and 
freeters will be dissolved over time? 
 
"Looking at the new college-graduates (who will get jobs) in the 
years ahead, I thinkg the ratio of regular employees to total 
workers will rise, but those who are already freeters would find 
it difficult to get permanent positions, given their ages. Public 
support, including vocational training, is necessary for them." 
 
Fumio Otake: Completed the first half of the doctorate course at 
the Graduate School of Osaka University; after serving as 
lecturer at Osaka Prefecture University, has served in the 
current post since 2001; majored in labor economics; comes from 
Kyoto Prefecture; is 45 years old. 
 
Toshiaki Tachibanaki, professor at Kyoto University: Competition- 
oriented policy going too far 
 
Interviewer: Shoichi Takayama of the Political Desk 
 
-- Over the past five years under the Koizumi administration, has 
the public been made happy? 
 
"I think those who have been pushed down into a lower bracket as 
a result of the expansion of income disparity may feel unhappy, 
while those who have climbed into the upper bracket may feel 
happy." 
 
-- Why do you think the disparity is expanding? 
 
"The number of poor people has increased. The number of 
households living on welfare has risen from 600,000 in 1995 to 
1,000,000 in 2005. The most serious cases are found in aged 
individuals living alone, poor young people and fatherless 
families." 
 
 
TOKYO 00001742  003 OF 010 
 
 
-- There is an argument that the gap has not been so much widened 
when it comes to the whole society, though the number of elderly 
people among whom there is a wide gap in income disparity has in 
fact increased. 
 
"An increase in the number of such elderly people means an 
explosion in needy aged individuals. When the majority of people 
in the society were in the middle class, everybody had incentive 
to work. But once people were pushed into the lower class, they 
have lost their will to work, and there is also a rise in crimes. 
Some corporate managers are also arguing that the widening income 
disparity is a bad thing." 
 
-- Is the Koizumi administration to be blamed for the widening of 
income disparity? 
 
"Inequality was already seen before the Koizumi administration 
started, but it is true that market fundamentalism and the 
competition-emphasized policy (advanced by the Koizumi 
administration) have helped the gap expand. These policy 
approaches were intended to boost the economy, but they have gone 
too far, failing to pay attention to the poor; as a result, the 
number of poor people has risen. Changing the strategy is 
necessary." 
 
-- The Prime Minister has also emphasized the necessity of safety 
net. 
 
"What he has been doing in actuality is the opposite. He has cut 
the social welfare budget. That has led to hiking, for example, 
the medical treatment fees the public pays at hospitals and 
pension premiums." 
 
-- Yet, the so-called Koizumi reforms have helped corporate 
performances to recover. 
 
"I give high marks to the administration in terms of slashing 
useless public outlays and thereby contributing to expanding the 
economy, but the benefits of all these have not been passed along 
to the workers in view of wage hikes and turning non-regular 
employees into regular employees, for example." 
 
-- There is concern that the income disparity will become fixed. 
 
"Wealth disparity between parents determines whether their 
children receive good education. This gap will be taken over by 
the next generation. Japan must take action, including improving 
the scholarship system, and expand the current lowest level of 
educational expenses among the industrialized nations." 
 
Toshiaki Tachibanaki: completed the graduate course at the Johns 
Hopkins University; after serving as assistant professor at Kyoto 
University, has served as professor there in 1986; majored in 
labor economics; comes from Hyogo University; is 62 years old. 
 
(9)  Leverage for Japan's space exploration as LDP eyes new space 
legislation for defense purposes 
 
ASAHI (Page 15) (Full) 
March 29, 2006 
 
 
TOKYO 00001742  004 OF 010 
 
 
Cabinet post likely for strategic space exploitation 
 
Japan will likely soon make a big leap for space exploration. The 
ruling Liberal Democratic Party is moving ahead on the drafting 
of new legislation that would end Japan's self-imposed moratorium 
on the use of outer space for defense purposes. Until now, Japan 
has limited its space utilization to activities for nonmilitary 
purposes only. The LDP is also studying the feasibility of 
setting up a 'control tower' for Japan's space activities. In the 
upcoming fiscal year or later, the government will entrust the H- 
2A rocket, Japan's mainstay launching vehicle, to private 
sector's hands in order for Japan to make inroads into 
international markets for the space business. However, Japan's 
space-related industry has been dwindling and is becoming 
precarious. 
 
"Japan has shackled itself to a Diet resolution. As a result, 
Japan has strayed off its course in returning its rockets to 
flight. We now have to meet global standards. To do so, we'll 
must enact a new law. That's the best way." 
 
On March 28, the ruling Liberal Democratic Party's special 
committee on space activities held a meeting of its subcommittee 
on Japan's exploration and peaceful uses of outer space. In the 
meeting, Katsuyuki Kawai, presiding as deputy chairman over the 
subcommittee, proposed establishing a space activities law. The 
subcommittee unanimously approved the proposal. In principle, 
Japan has limited its space activities to peaceful purposes only. 
The new legislative measure, meanwhile, is aimed at its 
changeover to nonattack defense purposes. 
 
The peace doctrine for space activities was adopted in a 1969 
Diet resolution. The government has interpreted it as limiting 
Japan's space utilization to activities for nonmilitary purposes 
only. The LDP could also opt to resolve in the Diet to lift the 
ban on space utilization for defense purposes. However, Kawai 
notes that Diet resolutions basically require unanimous approval 
from all lawmakers in their plenary sittings. "The hurdle is 
lower in the case of lawmaker-initiated legislation," he says. 
The targeted law, once enacted, would allow the Defense Agency to 
develop and employ early warning satellites that detect ballistic 
missiles launched, as well as high-performance spy satellites. 
 
"Japan's space programs used to be mainly for research and 
development," says former Education, Culture, Sports, Science and 
Technology Minister Takeo Kawamura, who chairs the subcommittee. 
"But," he adds, "it's critical to utilize space for strategic 
purposes, including the areas of national security, diplomacy, 
and public security." In addition, the new legislation is also 
aimed to broaden the spectrum of space activities and develop new 
industries. 
 
Some lawmakers in the leading opposition Democratic Party of 
Japan (DPJ or Minshuto) are also voicing their support for a 
review of the peace doctrine. The LDP eyes enacting the new 
legislation into law at next year's ordinary session of the Diet. 
However, the Diet resolution has served to deter Japan from being 
involved in the space arms race. The New Komeito, a coalition 
partner of the LDP, has treated the 1969 Diet resolution in a 
positive way, so the LDP cannot necessarily expect the 
legislation to clear the Diet without a hitch. 
 
TOKYO 00001742  005 OF 010 
 
 
 
The LDP is also seeking to revamp the government's current 
decision-making framework. In concrete terms, the LDP will 
advocate establishing a special portfolio or cabinet post for 
space activities and setting up a council for space strategies. 
At present, a number of space development programs are separately 
going on in various organizations affiliated with the Ministry of 
Education, Culture, Sports, Science and Technology (MEXT), the 
Ministry of Economy, Trade and Industry (METI), and the Ministry 
of Internal Affairs and Communications (MIC). The Space 
Activities Commission (SAC), a one-time government board 
overseeing Japan's space development, was also demoted to the 
status of an advisory panel to MEXT in the government's 
restructuring of its ministries and agencies in 2001. "The way 
things are going, we can't go ahead with multipurpose satellite 
projects in various areas, including agriculture, environmental 
protection, and disaster prevention," says Japan Aerospace 
Exploration Agency (JAXA) President Keiji Tachikawa, who was on 
the board of SAC members. 
 
For example, Japan has now embarked on a quasi-zenith satellite 
(QZS) project. The QZS is a satellite to be orbited near the 
zenith of Japan for hyperacute positioning. This satellite can be 
expected to provide commercial services as well. The first QZS 
delivery is timetabled for fiscal 2008. However, the government 
has yet to define its internal role sharing and yet to decide on 
which organization is to oversee QZS operations and what services 
to provide. Details are still up in the air. 
 
Some point to Japan's lack of strategy for manned space 
activities. The International Space Station (ISS) project will 
now be phased down since the US National Aeronautics and Space 
Administration (NASA) has backpedaled on the project. Japan is 
concerned about whether its astronauts can stay long on their ISS 
module. In point of fact, there is no choice but to depend on the 
United States. 
 
In 2004, the Council for Science and Technology Policy (CSTP), a 
board of advisors to the government, released a report on Japan's 
basic strategy for space development and exploitation. The 
report, however, went no further than to suggest the need for the 
government to begin in 20-30 years to study the feasibility of 
setting about manned space activities on Japan's own. 
 
H-2A commercialization: Concerns raised about Japan's 
international competitiveness 
 
The government will soon transfer its H-2A delivery missions to 
the private sector. Mitsubishi Heavy Industries, Ltd. (MHI) will 
take over the job from JAXA in the upcoming fiscal year or later. 
Japan has successfully returned three H-2A rockets to flight in 
the past year. "Japan has successfully lifted off three H-2A 
rockets in a row following the failure to launch a sixth one, and 
Japan could recover its international credibility," says 
Yoshiharu Kurihara, general manager of the Space Systems 
Department at MHI Aerospace Headquarters. 
 
However, the H-2A will be at a moment of truth in fiscal 2008 or 
later. Japan plans an annual space delivery of three satellites 
or so for the 2006 and 2007 fiscal years. They are intelligence- 
gathering satellites or ultrahigh-speed Internet communication 
 
TOKYO 00001742  006 OF 010 
 
 
satellites for government or JAXA use. 
 
Judging from MHI's capacity, the H-2A can deliver 3-4 satellites 
a year. From now on, MHI will annually deliver a commercial 
satellite or two on the H-2A, in addition to public satellites. 
However, some wonder if Japan will be able to survive the tough 
business on international markets. 
 
What is the H2-A's merit? "We don't have to ship satellites 
overseas," an MHI official says, "and there's no language 
barrier." However, MHI's clients are taking a frosty look at MHI. 
"The H-2A has often put off its flights for a couple of months," 
says a satellite service provider. This company also notes the 
"high cost" of delivering a payload on the H-2A. "We'll need to 
wait for a while to see actual flights," he says. 
 
Meanwhile, US and European rivals have experienced more than 100 
liftoffs and successfully returned about 90% of them to space so 
far. However, the H-2A has made only nine successful flights into 
space. The delivery costs of foreign rivals average 6-8 billion 
yen, while the H2-A costs approximately 9 billion yen. China, a 
potential rival on the international market, provides payload 
delivery services at still lower prices. MHI does not think the H- 
2A can vie with China, according to its official. 
 
NASA forecasts an annual total of 15-20 commercial satellites in 
the world for space delivery over the next 5-10 years. Japan will 
have to scramble against powerful rivals for the few business 
chances. 
 
Furthermore, the European Union's Ariane rocket-the strongest of 
all rivals-has financial backup from the European Space Agency 
(ESA) with an annual funding of 200 million euro or approximately 
28 billion yen for launching pad maintenance and other costs. MHI 
depends on the government for research intended to improve the 
credibility of Japan's launching vehicles. In addition, MHI will 
also ask the government to undertake launching pad maintenance. 
"We'll have to reduce costs, but we should first think of 
launching our rockets without fail," says an MHI official. 
 
Domestic products on the ebb, replaced with foreign products 
 
Satellite and rocket parts are now hardly available at home. 
According to Society of Japanese Aerospace Companies (SJAC) and 
other statistics, space-related industries sustained a decrease 
of about 40% in their annual turnover during the five fiscal 
years up to 2004. They have also sustained a decrease of about 
10% in their workforce and also reduced their capital spending to 
half. 
 
JAXA has a products qualification system for its suppliers in 
order to procure high-quality parts for spacecraft use. In 2005, 
JAXA qualified 250 products. This quantity, however, is half the 
number qualified five years ago. Its supplies also decreased from 
37 to 31. 
 
These facts show that Japan's space industry is on the ebb. What 
lies behind that is a decrease in government funding. JAXA's 
budget from the state coffers for the current fiscal year is 20% 
down from its peak in 1999. Japan's space industry depends on the 
government for more than 70% of demand. In the case of private- 
 
TOKYO 00001742  007 OF 010 
 
 
sector demand as well, the greater part of it is public-sector 
demand via big businesses. The private sector's own demand 
accounts for only 2%, according to 2003 statistics. 
 
NEC TOSHIBA Systems, Ltd. manufactures space-related equipment. 
Its managing director, Shogo Kitahara, is concerned about Japan's 
dependence on foreign makers for spacecraft parts. "But," 
Kitahara said, "we don't know about satellite development in the 
future." He added, "We must have prospects, or we can't ask our 
suppliers not to stop their production." 
 
Depending on foreign makers for parts will likely bring about 
problems when their products are in trouble. JAXA Space 
Utilization Project Manager Homma complains: "Spacecraft parts 
have many trade secrets, so we can't get information we need for 
trouble shooting or repair work." 
 
For example, there is a microchip for space-related equipment. 
The chip is called electronic program guide, or EPG for short. 
EPG writes a computer program for attitude control and is widely 
introduced for satellites. Only one US maker produces EPGs. In 
2003, JAXA discovered a glitch in the chip. EPGs were used for an 
engineering test satellite (ETS) and other satellites scheduled 
to be launched on the H-2A. JAXA took six months for its root 
cause analysis and other trouble-shooting steps with an 
additional outlay of several hundred million yen. 
 
Japan's launching vehicles have also undergone a sea change. In 
the case of the H-2 rocket, which is the H-2A's prototype, more 
than 90% of its componentry were domestic products. In the case 
of the H-2A, however, the rate of domestic products is down to 
30%. 
 
"Launching vehicles need guidance systems and other 
technologies," says Mamoru Endo, project manager of JAXA's H-2A 
team. Endo goes on, "Once these technologies die out, it will be 
difficult to get them back." He notes that JAXA's contractors can 
no longer afford to develop technologies, wondering if they can 
hand down their technical know-how. "The way things are going," 
he added, "we can't build the H-2A in five years." 
 
(10)  Editorial: Administrative surcharges leniency system 
effective to prevent bid-rigging practices 
 
YOMIURI (Page 2) (Full) 
March 31, 2006 
 
It has already been demonstrated that the leniency system of 
administrative surcharges, which was introduced in January when 
the Antimonopoly Law was revised, is effective to prevent bid- 
rigging practices. 
 
The Fair Trade Commission (FTC) searched the offices of about 30 
companies, including Mitsubishi Heavy Industries Lt. (MHI) and 
Ishikawajima-Harima Heavy Industries Co. (IHI), on suspicion that 
they had rigged bids on floodgate public works projects. 
 
In addition, the FTC has started detecting alleged rigging of 
bids on ventilating installation works for tunnels for which the 
former Metropolitan Expressway Public Co. and the government had 
placed orders. 
 
TOKYO 00001742  008 OF 010 
 
 
 
The FTC detected the bid-rigging scam because offenders had 
voluntarily reported the cases to the fair trade watchdog in 
consideration of the surcharges leniency system. 
 
The characteristic of the system is that the FTC will exempt or 
reduce the amount of administrative surcharges if the offender 
voluntarily reports the case to the FTC. 
 
The FTC has introduced the system, which is effective to detect 
corporate crimes, including cartels, in the United States and 
Europe. The system is similar to plea-bargaining. 
 
Business circles opposed the introduction of the system for it 
did not match the Japanese business culture, since the system 
appears to be recommending treachery as an act. Fortunately the 
system seems to have functioned well. 
 
For companies it must be a great shock because they might be 
reported to the FTC if they rig bids. 
 
Under such circumstance, the responsibilities of executives of 
the offending companies are significant. They should realize that 
increasing their awareness of obeying the rules, giving up 
rigging bids, is the only way to save their companies, rather 
than taking a high risk economically and socially by taking part 
in bid-rigging practices. 
 
Under the revised Antimonopoly Law, the standard for calculating 
the administrative surcharges for the offenders was significantly 
raised. If major companies break the law, the fine, once six 
percent, has been increased to 10 percent. A fine of 15 percent 
are applied to repeat offenders. 
 
If the hikes in the surcharges sticks, the leniency system is a 
carrot for firms to put an end to bid-rigging practices. It can 
be said that the leniency system has begun to eliminate the "bid- 
rigging culture." 
 
In construction circles where rigging bids is common, reportedly 
five leading general construction companies have agreed to 
eliminate bid-rigging practices. General construction firms 
declared many times in the past their determination to put an end 
to bid-rigging practices, but they have always broken their 
promises. But executives of the construction industry say they 
will keep their promise this time. 
 
The perception that rigging bids is an unforgivable crime to 
waste tax money should be established in the construction 
industry. 
 
(11)  Growing Japanese economy (Part 2): Promotion of efficiency 
increasing domestic productivity again 
 
NIHON KEIZAI (Page 1) (Full) 
March 30, 2006 
 
Aichi Steel Works, Ltd., a leading auto parts maker of the Toyota 
Group, plans to construct a plant for foundry pieces made out of 
special steel in Tokai City, Aichi Prefecture. Foundry pieces 
used to be used to assemble engine crankshafts, because of 
 
TOKYO 00001742  009 OF 010 
 
 
difficulty in obtaining the same quality of products as those 
made in Japan from overseas, the company will expand its 
production capability by more than 20% by constructing the new 
plant at a cost of approximately 10 billion yen. When he visited 
the office of Toyota Motor Corporation, President Morita told its 
executives: "We would like to have the capability to be able to 
supply components on our own responsibility." 
 
Another member of the Toyota Group, Aishin Seiki Co., also drew 
up a plan this February to construct a new engine-parts factory 
in Tomakomai City, Hokkaido. 
 
Although the construction machinery industry was careful about 
new large-scale investment, its attitude has gradually changed. 
Komatsu Ltd., will build a new plant for the first time in 11 
years, and Hitachi Construction Machinery Co., also plan to build 
a plant after a lapse of 19 years, both in Hitachi-Nakaminato 
City, Ibaraki Prefecture. By investing more than 40 billion yen, 
the two countries will respond to increasing demands for 
construction machinery in North America and the Middle East. 
 
These companies are willing to "meet increasing demands in the 
world from a Japan that has superior technology," said Hitachi 
Construction Machinery President Dazai. Many manufacturers were 
eager to shift production bases to China until recently, but some 
of them are now planning to assemble high value-added products in 
Japan, creating a favorable cycle in which jobs and household 
incomes increase first, personal consumption is stimulated next, 
and then corporate performance eventually improves. 
 
Canon Inc. and Toshiba Corporation plan to build factories in 
Oita Prefecture. Such investment is estimated to create about 780 
billion yen worth of economic effects in the area. 
 
In the January - March period of 2007, listed companies expect to 
see their earnings reset its highest record for the fourth 
straight term. Many think-tanks estimate that capital investment 
for fiscal 2006 will increase by 5% to10%. 
 
In the past, capital investments also increased as earnings were 
on the rise. But the contents of investments have changed. As 
many as 40% of companies surveyed said they planned to invest 
more than one-fourth of all new capital investments in improving 
the functions of their existing facilities account. 
 
Honda Motors has decided to build a new plant in Saitama 
Prefecture, the first new factory in 30 years. The aim is to 
boost productivity by thoroughly making mass-production lines 
more effective. Honda President said: "Unless we improve the 
functions of our domestic plants, we will not be able to win" in 
global competition. 
 
As a result of their streamlining efforts, companies have boosted 
domestic productivity. According to Mizuho Research Institute, 
net output per head - manpower productivity - dropped to an 
annualized 0.9% in the 1990s but recovered to 2.0% during the 
period 2002 through 2005. Chief economist Hiroshi Iwamoto said: 
"The improvement is attributed to the increased efficiency of 
fund operations owing to the introduction of state-of-the-art 
production facilities." 
 
 
TOKYO 00001742  010 OF 010 
 
 
Many firms, though, still remember the experience of having had 
difficulty in disposing of excessive production capacity. In the 
electrical machinery industry, which has increased the output of 
flat-screen TV sets, some voice concern about the recent 
increasing production capacity in the industry. Nikon managing 
director Kazuo Ushida said: "It is difficult to judge if each 
firm's large-scale capital investment would create the state of 
over supply of flat-screen panels or be disposed of owing to 
growth in the TV market." 
 
If uncertainty looms over the future of the economy and should 
concerns about excessive plants and equipment appear again, 
companies might become careful about new investment. 
 
What to be noted is the future behavior of the yen value's 
exchange rates. According to the Bank of Japan, the yen's value 
to major currencies has weakened after a lapse of 20 years. The 
weak yen has driven up exports, encouraging domestic firms to 
build new plants. However, if the US economy slows down or if the 
difference in interest rates between Japan and the US contracts, 
the yen would rapidly surge again. In such a case, the brakes 
might be applied to the accelerated moves to construct new plants 
in Japan. 
 
The major premise for keeping the economy on a sustainable 
recovery track is the continued growth of capital investment. In 
order to survive global competition, Japanese business executives 
should assume an unstinting stance for capital investment in 
areas with potential. 
 
DONOVAN