VZCZCXRO1693
RR RUEHFK RUEHNAG RUEHNH
DE RUEHKO #5570/01 3480824
ZNR UUUUU ZZH
R 140824Z DEC 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC 0317
RUEAIIA/CIA WASHDC
INFO RUEHFR/AMEMBASSY PARIS 5881
RUEHFK/AMCONSUL FUKUOKA 4968
RUEHNAG/AMCONSUL NAGOYA 3692
RUEHNH/AMCONSUL NAHA 7364
RUEHOK/AMCONSUL OSAKA KOBE 8630
RUCPDOC/USDOC WASHDC

UNCLAS SECTION 01 OF 08 TOKYO 005570 
 
SIPDIS 
 
PARIS PLEASE PASS TO USOECD 
STATE PLEASE PASS TO USTR 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ETRD ECON JA ZO EAGR
SUBJECT: The Japan Economic Scope--December 13, 2007 
 
¶1. (U) This cable contains the Japan Economic Scope from 
December 13, 2007. 
 
¶2. (SBU) Table of Contents 
 
Japan Post, Privatization 
¶3.  Japan Post Insurance Submits New Product Applications 
¶4.  Bill to "Review" Postal Privatization Passes Upper House 
¶5.  Japan Post Insurance Contract Sales Down 74% 
 
Beef, Agriculture 
¶6.  U.S. Beef: GOJ on Train That Says 30 months? 
¶7.  Where are the U.S. Apples? 
¶8.  Daily Yomiuri Puts Spotlight on Japan's Declining 
Agriculture Sector 
 
China Relations 
¶9.  Missing Text Sours Japan-China Econ Dialogue Outcomes 
 
Trade Policy 
¶10. Japan's EPA Agenda (SBU) 
¶11. Brief Summary of the EPA Sub Committee Conclusions (U) 
 
Business, Foreign Investment 
¶12. Wal-Mart's Stake in Seiyu Over 95 Percent After Its Tender 
Offer 
¶13. JFTC Whacks International Hose Cartel 
¶14. Government Seeks to Extend Capital Gains Tax 
 
Aviation 
¶15. International Airfare Liberalization in Japan? 
¶16. Itami Airport--MLIT Considers More Financial 
Responsibility by Local Government 
 
The Environment 
¶17. IWC Chairman Vists Tokyo 
 
The Regions 
¶18. FDI:  Costco Sapporo on Schedule for January 2008 Opening 
¶19. Largely Dropped Public Works in Osaka 
¶20. "Kansai Science City" Third Sector Project of Kyoto 
Prefecture Bankrupted 21. The Year in Kanji: "Itsuwari" 
Deception/Lies/Deceit 
Sports 
¶22. Cubs Swallow Dragon 
¶23. .Ambassador of Beef to Padres 
¶24. This Week's Cables (SBU) 
 
------------------------- 
JAPAN POST, PRIVATIZATION 
------------------------- 
 
¶3.  (SBU) Japan Post Insurance Submits New Product Applications 
 
In its first application for new or altered products since 
postal privatization began October 1, Japan Post Insurance 
(Kampo) submitted plans for two products to the Financial 
Services Agency (FSA) Commissioner and the Minister of Internal 
Affairs and Communications.  The plans, which will also have to 
be reviewed by the Postal Services Privatization Committee, 
were submitted November 26. 
 
According to government and industry officials, Kampo's new 
plans are (1) to distribute insurance products, starting in 
June 2008, targeting the business succession plans small and 
medium size companies' executives, and (2) to expand 
hospitalization coverage under certain medical riders attached 
to existing Kampo products. 
 
Despite the insurance industry's long-held fears about Kampo's 
move into new or altered products, U.S. industry officials have 
not criticized the action, noting that in the corporate market, 
Kampo has chosen to offer the products of eight private sector 
companies' (including, we hear, those of an AIG affiliate). 
 
Regarding the expansion of medical riders, one U.S. company 
executive described the scope of Kampo's plans as "relatively 
modest." 
 
While assuring us they will continue to press for transparency 
and a level playing field, American Chamber of Commerce of 
Japan (ACCJ) officials have told us they are unlikely to submit 
 
TOKYO 00005570  002 OF 008 
 
 
a public comment on this round of product applications, given 
Kampo's decision to open its network to private sector 
companies. (ECON: Marc Dillard) 
 
¶4.  (SBU) Bill to "Review" Postal Privatization Passes Upper 
House 
 
On December 12, the Diet's Upper House passed a bill to 
"review" postal privatization.  The bill is now in the Lower 
House, where media and government contacts believe it will 
either remain unaddressed (and thus fail at the end of the 
current session) or be voted down by the ruling Liberal 
Democratic Party (LDP). 
 
 The bill, which proposes that postal privatization be halted 
while it is under review, is sponsored jointly by the 
Democratic Party of Japan (DPJ), the Social Democratic Party 
(SDP), and the People's New Party (PNP).  (ECON: Marc Dillard) 
 
¶5.  (SBU) Japan Post Insurance Contract Sales Down 74% 
 
Japan Post Insurance's (Kampo) October contract sales were down 
74 percent relative to its sales in October 2006, according to 
media reports.  October's sales were the company's first since 
postal privatization commenced. 
 
Some newspaper reporting attributed the decline to Kampo's no 
longer being able to offer a government guarantee on its 
products--one of the key conditions of privatization. 
 
Industry officials, however, have stressed to us that 
solicitation requirements not previously required of Kampo's 
sales agents (as the requirements came into effect October 1 
when the Financial Services Agency became Kampo's regulator) 
were likely responsible for the unusually large drop in sales. 
 
Sales figures over the next several months will shed more light 
on the cause(s) of the decline.  (ECON: Marc Dillard) 
 
----------------- 
BEEF, AGRICULTURE 
----------------- 
 
¶6.  (SBU) U.S. Beef: GOJ on Train That Says 30 months? 
 
Under Secretary of Agriculture Keenum told a press conference 
in Tokyo December 7 that the United States disagreed with 
Japan's desire to ease restrictions on U.S. beef to allow beef 
from cattle up to 30 months old -- a policy at variance with 
the preferred U.S. approach, which would be for Japan to adopt 
OIE guidelines and allow U.S. beef imports without age 
restrictions. 
 
In part in reaction to the Keenum comments, Japanese 
authorities, including Chief Cabinet Secretary Machimura, have 
done more to explain the Japanese position, which has appeared 
in the press in recent weeks but in vague terms by officials 
speaking off the record.  Machimura told reporters after 
Keenum's comments that authorities are considering the 
"possibility" of recommending that age restriction on U.S. beef 
be raised  from 20 to 30 months.  (See attachment for 
Machimura's complete comments.) 
 
Japan's largest circulation daily, Yomiuri, had an editorial 
December 11 suggesting that moving to a 30-month age 
restriction on U.S. beef was appropriate.  The editorial added, 
however, that it was too early to eliminate age restrictions in 
accordance with OIE standards.  Yomiuri generally represents a 
fairly mainstream view of Japanese public opinion, and in the 
past has taken an even more anti-U.S. position over the beef 
issue.   (ECON:  Nicholas Hill) 
 
¶7.  (SBU) Where are the U.S. Apples? 
 
Two years ago the United States won a WTO ruling against Japan 
over U.S. apples, essentially opening the way for their import 
into the Japanese market.  Despite the ruling, in 2006 Japan 
did not import a single apple. 
 
According to a December 10 USDA GAIN Report, Japanese apple 
growers face no competition due to phytosanitary restrictions 
and high tariffs.  Meanwhile, exports -- mostly to Taiwan -- 
 
TOKYO 00005570  003 OF 008 
 
 
have expanded by 10 percent, to 18,800 metric tons. 
For more please see attached report.  (ECON:  Nicholas Hill) 
 
¶8.  (U) Daily Yomiuri Puts Spotlight on Japan's Declining 
Agriculture Sector 
 
Japan continues to struggle with a declining farm sector. 
Despite steep barriers to imports and generous support programs 
for farmers, agricultural production continues on a downward 
trajectory. 
 
Hiroyuki Ueba describes the decline in a page one feature 
article in the December 8 English language Daily Yomiuri. 
Between 1990 and 2005, agricultural output plunged from 7.84 to 
4.81 trillion yen.  Japan's self-sufficiency rate declined from 
78 percent in 1961 to 39 percent in 2006. 
 
The government's handling of the farm sector has been mixed, 
with an assortment of political barriers to introducing 
necessary reforms.  Some blame attempts to consolidate farms 
and boost efficiency as one reason the Abe government suffered 
heavy losses in last summer's Upper House parliamentary 
elections. 
 
Ueba's Daily Yomiuri article is a serious attempt to look at 
 
SIPDIS 
Japan's overall farm sector difficulties.  What is interesting, 
an agriculture economist who was quoted extensively by Ueba 
told us later, is that the article never appeared in the 
Japanese language press. 
 
The Daily Yomiuri's circulation is about 40,000 readers, 
compared to the Yomiuri's 10 million, the largest daily in the 
world.  (ECON:  Nicholas Hill) 
 
--------------- 
CHINA RELATIONS 
--------------- 
 
¶9.  (U) Missing Text Sours Japan-China Econ Dialogue Outcomes 
 
Japanese media revealed December 7 the Chinese version of the 
press communique from the December 1-2 Japan-China High-level 
Economic Dialogue HED) was missing language regarding the 
Japanese side's call for faster appreciation of the Chinese 
currency. 
 
A portion referring to Japan's desire for China to participate 
in the Energy Charter Treaty was also dropped in the Chinese 
text.  Chief Cabinet Secretary Machimura called the omissions 
in the Chinese text of the communique "unthinkable from the 
viewpoint of international practices." 
 
Nevertheless, Machimura indicated the dispute over the missing 
text would not affect plans for PM Fukuda to visit China.  The 
Chinese government's explanation was that the document was not 
a formal "joint communique"--therefore, differences in the 
texts were to be expected. 
 
Tokyo 5532 provides more GOJ commentary and analysis on this 
incident. (ECON:  Chris Wurzel) 
 
------------ 
TRADE POLICY 
------------ 
 
¶10.  (SBU) Japan's EPA Agenda 
 
Japan's has a mixed record in ongoing EPA negotiations with an 
assortment of partners.  That was what recently published 
minutes of the Economic Partnership Agreement (EPA) Agriculture 
Sub Committee of the Council for Economic and Fiscal Policy 
(CEFP) reflected. 
 
A senior official familiar with the work of the Sub Committee 
told us that the Fukuda government remained committed to a 
reform agenda, including on EPAs, but there was a greater 
element of "realism" than under the previous Prime Minister. 
The official noted in particular that there was more conflict 
in the Diet over agriculture reform, which is critical to 
stimulating progress on EPA negotiations.  (ECON:  Nicholas 
Hill/Ryoko Nakano) 
 
 
TOKYO 00005570  004 OF 008 
 
 
¶11.  (U) Brief Summary of the EPA Sub Committee Conclusions 
 
A brief summary of the sub committee conclusions as they appear 
on the CEFP website follows: 
 
Australia EPA - Negotiations are proving difficult, although 
there is some progress to show concerning energy and natural 
resources.  On Agriculture, the two countries have focused on 
exchanging information on sensitive items.  To ensure stable 
natural resource supplies, Japan is asking Australia to 
prohibit export duties and guarantee that exports will not be 
banned.  Australia's response to this latter point is 
affirmative but cautious. 
 
Philippines EPA - the deal was signed last year and ratified in 
Japan and pending ratification in the Philippines.  As of 
November (when the CEFP minutes were first published), an Upper 
House Committee did not have the required two-thirds to pass 
the agreement. 
 
Vietnam EPA - Talks are ongoing.  The two sides have met five 
times since their launch in January 2007.  Being one of the 
least developed countries in Asia, Vietnam is highly 
protectionist.  This raises concern on how much Vietnam is 
willing to liberalize its market. 
 
GCC EPA - The sides have not been able to hold talks since 
January.  The meetings set for April and July were also 
cancelled. 
 
India EPA - Negotiators have held four meetings since January. 
India is resisting tariff reductions. 
Switzerland EPA - It is the first EPA negotiation to be carried 
out with a developed country in Europe and progress is being 
made. 
EPA with U.S. and EU - MOFA is currently asking interested 
parties and related ministries on their views toward such an 
EPA and hope to make it a future issue. (ECON:  Ryoko Nakano) 
 
---------------------------- 
BUSINESS, FOREIGN INVESTMENT 
---------------------------- 
 
¶12.  (U) Wal-Mart's Stake in Seiyu Over 95 Percent After Its 
Tender Offer 
 
Wal-Mart Stores Inc. has raised its stake in Seiyu, the fifth- 
biggest retailer in Japan, from 50.9 to 95.1 percent after 
submitting its tender offer on December 4. 
 
Although money-losing Seiyu had been performing better since 
Wal-Mart entered the market in 2002, there were rumors that 
Wal-Mart would exit the Japanese market after it sold its 
operations in Germany and South Korea. 
 
Wal-Mart Senior Director of International Corporate Affairs, 
Beth Keck, visited EMIN in late October to dispel these rumors. 
Wal-Mart has made the commitment to stay in Japan and wished to 
show its intention by expanding its ownership of Seiyu. 
 
Wal-Mart will now proceed with additional steps to acquire all 
of the remaining shares, which will result in the delisting of 
Seiyu shares from the Tokyo Stock Exchange. 
 
Seiyu's Executive Director and Senior Vice President of 
Corporate Communications, Ryo Kanayama, confirmed to us that 
Wal-Mart's tender offer was intended to give general confidence 
to its business partners about Wal-Mart's commitment.(ECON: 
Junko Nagahama) 
 
¶13.  (SBU) JFTC Whacks International Hose Cartel 
 
Japanese media December 8 reported the Japan Fair Trade 
Commission (JFTC) will punish Bridgestone Corp., Yokohama 
Rubber, and four European firms over an international price 
cartel in the sale of marine hoses used for transferring oil, 
according to sources. 
 
A JFTC official confirmed the punishment will be the first the 
JFTC has imposed on foreign companies and is likely to include 
imposition of punitive surcharges on the non-Japanese 
participants in the cartel. 
 
TOKYO 00005570  005 OF 008 
 
 
 
The four foreign firms are Britain's Dunlop Oil & Marine Ltd., 
France's Trelleborg Industrial AVS, and Italy's Parker ITR 
S.R.L. SpA, and Manuli Rubber Industries SpA. 
 
The six companies account for about 90 percent of the market 
and, according to the press, have been under investigation by 
authorities in Japan, Europe and the United States since May. 
 
The U.S. Justice Department has arrested eight executives, 
including the then chief of Bridgestone's overseas division for 
chemical products. Most of them--but not the Bridgestone 
executive--have been indicted. Two executives of the French 
manufacturer have admitted to the charges.  (ECON:  Chris 
Wurzel) 
 
¶14.  (U) Government Seeks to Extend Capital Gains Tax 
 
As one element of the expected tax reform package, the LDP and 
New Komeito coalition will attempt to grant a two-year 
extension of the tax break on capital gains beyond the current 
2008 deadline. 
 
At present, the tax cut reduces the 20 percent capital gains 
rate by half.  Going forward, the ruling coalition's proposal 
would apply the lower rate to annual gains of up to JPY 5 
million, while the original 20 percent rate would apply for 
gains above that amount. 
 
We will have further reporting on the entire tax reform package 
--including proposals to share local enterprise tax revenues to 
distressed regions--after its official release.  (FINATT: 
Mateo Ayala) 
 
-------- 
AVIATION 
-------- 
 
¶15.  (U) International Airfare Liberalization in Japan? 
 
On December 5, Japan's FTC formally requested the 
transportation ministry, MLIT, to review current Aviation Law, 
which allows price cartels by the International Air Transport 
Association (IATA) to be exempted from antitrust law. The FTC 
issued the same request in 1999, but MLIT rejected the request 
because other countries are in line with Japan's practice for 
IATA pricing to be exempted from respective country's 
competition laws. 
 
However, the FTC this time says there is no rationale for the 
practice to continue with active movements that are taking 
place toward abandoning IATA cartel in the United States, 
European Union, and Australia. 
 
According to the Sankei Shimbun, IATA fares are applied to all 
first-class tickets and 90 percent of business-class tickets 
for flights in and out of Japan.  The article suspects that, if 
MLIT abolishes the system, discount tickets for first-class 
seats or reduced fares for business-class and economy-class 
seats will likely appear on the market. 
 
MLIT's Vice Minister Minehisa said the ministry will not rush 
into a conclusion.  However, there have been comments from MLIT 
officials that the current system is working fine and Japan's 
decision to abolish the current system might invite confusion 
in Asia's aviation market, showing reluctance to change. (ECON: 
Junko Nagahama) 
 
¶16.  (U) Itami Airport--MLIT Considers More Financial 
Responsibility by Local Government 
 
According to the Asahi Shimbun Osaka Edition this week, MLIT 
plans to set the financial responsibility to local governments 
for Itami Airport, which is fully managed and funded by the 
national government, at 400--500 million yen ($3.6--4.5 
million) per year for the next five years. 
 
The national government has been spending three billion yen 
($27.2 million) per year for Itami Airport, with the  local 
government footing one third of the cost.  Local authorities 
and businesses have resisted changes to this funding scheme in 
the past. 
 
TOKYO 00005570  006 OF 008 
 
 
 
A manager of the Osaka Prefectural Government Airport Promotion 
Section told ConGen that the current airport management 
legislation is out of line with actual MLIT practices.  Osaka 
wants Itami to continue to provide international air service 
and has expressed dissatisfaction with MLIT's current policy. 
One issue is the current structuring of airports into several 
categories based on the kind of organization operating the 
airport, with varying levels of funding and international 
service.  Responding to this criticism, MLIT will submit a 
revised bill to the Diet session of January.  (Osaka-Kobe: 
Phil Cummings/Naomi Shibui) 
 
--------------- 
THE ENVIRONMENT 
--------------- 
 
¶17.  (U) IWC Chairman Vists Tokyo (U) 
William Hogarth, current Chairman of the International Whaling 
Commission (IWC) and U.S. Commissioner to the IWC, was in Tokyo 
for meetings with Japanese officials on December 11.  For a 
readout of those meetings, please see Tokyo 5536. (ECON:  Bart 
Cobbs) 
 
----------- 
THE REGIONS 
----------- 
 
¶18.  (U) FDI:  Costco Sapporo on Schedule for January 2008 
Opening 
 
During a December visit to ConGen Sapporo, Costco Japan's 
assistant director of marketing confirmed that the company is 
on track to open its sixth Japan store here on January 25, 2008. 
 
Costco CEO James Sinegal, who attends all Costco openings 
worldwide, will travel to Sapporo for the festivities.  Costco 
Japan is pleased with the location it selected in Sapporo, 
which allowed it to build a large facility to almost 100 
percent American specifications, including a 700-car parking 
garage with excellent access to the adjoining highway. 
 
The company is also happy with local excitement about the store 
coming to Hokkaido. A pre-opening Costco membership drive in 
Sapporo has already set new records for first-time signups in 
Japan. 
 
In addition, the pool of qualified applicants for new jobs is 
strong.  Costco Sapporo has already hired nearly 200 workers, 
and the company has plans to hire an additional 100. (Sapporo: 
Ian Hillman/Yumi Baba) 
 
¶19.  (SBU) Largely Dropped Public Works in Osaka 
 
A recent study by Asahi Shimbun showed that cases of "bid 
failure" for public works projects in major cities are on the 
increase.  There were 80 such cases in Osaka City last year, 
7.3 times the rate in 2005. 
 
Bid failures quadrupled in Tokyo and Nagoya.  Contractors said 
that recent projects put forward by municipalities were 
unfeasible at initial bid levels. 
 
A manager of MLIT Kinki Regional Development Bureau said that 
recent large scale bid-rigging scandals in Osaka, which have 
led to heightened scrutiny by the Osaka District Public 
Prosecutors Office, is one factor behind the declining contract 
bid prices.  The trend is especially pronounced in Osaka. 
 
On the other hand, several prefectures in rural areas still 
depend on public works as an employment tool.  Tokushima 
Prefecture has not seen any cases of bid failure in its public 
works (possibly a sign of bid-rigging). 
 
Construction companies in Tokushima claim there are few private 
sector alternatives to local government projects to keep 
themselves employed(Osaka-Kobe:  Phil Cummings/Naomi Shibui) 
 
¶20.  (SBU) "Kansai Science City" Third Sector Project of Kyoto 
Prefecture Bankrupted 
 
Keihanna Interaction Plaza Inc, the core company managing 
 
TOKYO 00005570  007 OF 008 
 
 
Kansai Science City, which is a public/private partnership by 
the three prefectures of Kyoto, Osaka, and Nara, filed for 
bankruptcy on November 30. 
 
Its debt totaled 10.9 billion yen ($99 million).  Kyoto was the 
most heavily invested in the project.  This is the first 
bankruptcy of a so-called "third sector" project for Kyoto 
Prefecture.  The largest stockholder of Keihanna Interaction 
Plaza is the Development Bank of Japan (DBJ). 
 
DBJ is working on a revitalization plan, and has asked for 
financial support by local businesses. 
 
Kansai Economic Federation Chairman Hiroshi Shimozuma, who is 
the Chair of Keihanna, said that he would support the 
revitalization of Keihanna and would ask the Kansai business 
community for restructuring assistance. 
 
Keihanna President Yoshio Tateishi, who is the head of both 
Omron and the Kyoto Chamber of Commerce, apologized.  Kansai 
Science City was established in 1989 amid the bubble economy. 
Observers likened the firm's collapse to a decade-long sinking 
of the Titanic, one of perhaps many to face the Kansai in the 
near future. (Osaka-Kobe:  Phil Cummings/Naomi Shibui) 
 
¶21.  (U) The Year in Kanji: "Itsuwari" Deception/Lies/Deceit 
 
Food for thought: The head priest of Kiyomizudera temple in 
Kyoto announced that the Chinese character best summing up the 
current year was "itsuwari," literally "deception, lies, deceit, 
etc." 
 
The annual selection, culled from surveys of the Japanese 
public, surprised few here.  A spate of food-business scandals 
involving falsified "best by" dates and ingredient labels, and 
recycled food products being sold as new, has damaged consumer 
trust of the food industry. 
 
Newspaper editorials also claimed the selection of this 
character was a reflection of voters' distrust of politicians 
over the pension scandal at the Social Insurance Agency that 
emerged over the summer. 
 
Officials at the Kanji Testing Association in Kyoto said that 
the public clearly expressed its choice of characters this year 
(18 percent), in contrast to previous years.  (Osaka-Kobe: 
Phil Cummings) 
 
------ 
SPORTS 
------ 
 
¶22.  (U) Cubs Swallow Dragon 
 
The Chicago Cubs made a big splash in the sweepstakes for 
Japanese players this week.  They reportedly signed former 
Chunichi Dragons outfielder Kosuke Fukudome to a four-year 
contract worth $48 million. 
 
Fukudome has a career .305 batting average over nine seasons 
with the Chunichi Dragons.  His production was down in 2007 due 
to bone chips in his right elbow.  His contract with the Cubs 
is conditional on passing a physical next week when he visits 
Chicago. 
 
According to ESPN, Cubs manager Lou Pinella told reporters that 
Fukudome is a cross between Hideki Matsui and Ichiro Suzuki. 
Fukudome reportedly spurned an offer with the San Diego Padres 
to go to the Cubs.  The Padres offered Fukudome a three year 
deal in excess of $10 million per season. (ECON:  Nicholas 
Hill) 
 
¶23.  (U) Ambassador of Beef to Padres 
 
On the rebound after Kosuke Fukudome signed with the Cubs, the 
San Diego Padres signed Tadahito Iguchi to a one-year contract 
to play second base. 
 
Iguchi, who played for the Chicago White Sox and Philadelphia 
Phillies in 2007, is a big fan of U.S. beef and made no bones 
about eating the stuff with the Japanese public -- becoming 
something of an Ambassador of Beef for the Tokyo media last 
 
TOKYO 00005570  008 OF 008 
 
 
year.  (ECON:  Nicholas Hill) 
 
¶24.  (SBU) THIS WEEK'S CABLES 
5540 Secure Freight Initiative 
5538 METI DG Ishige on Climate Change, Trade Issues 
5539 Kyrgyz President visits Japan 
5536 Whaling 
5535 Demarche on UN Budget Issues 
5534 Bamako Consultations Demarche on Cuba 
5533 Country Specific HR Resolutions 
5532 China-Japan Econ Dialogue Outcomes 
5519 Preventing Iranian Proliferation 
5512 Former SDF Col Sato Discusses Anti-Terrorism Law, Diet 
Extension 
5511 Paris Donors Conference 
5503 Diet Extension, OEF Bill 
5491 Rood's Nonproliferation Meetings 
 
¶25. (U) This SENSITIVE BUT UNCLASSIFIED e-newsletter from U.S. 
Embassy Tokyo's Economic Section, with contributions from the 
consulates, is for internal USG use only.  Please do not 
forward in whole or in part outside of the government.  The 
Scope is edited this week by Charlotte Crouch 
(CrouchCA@state.gov) and Joy Progar (ProgarJ@state.gov). 
Please visit the Tokyo Econ Intranet webpage for back issues of 
the Scope.  Apologies, this option is only available to State 
users.  Please contact Joy Progar if you are from a different 
agency and are interested in a back issue. 
SCHIEFFER