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$Date{1981}
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Title:       Japan
Book:        Japan, A Country Study
Author:      Frederica M. Bunge
Affiliation: HQ, Department of the Army
Date:        1981

Front Matter

Foreword

     This volume is one in a continuing series of books now being prepared by
the Federal Research Division of the Library of Congress under the Country
Studies-Area Handbook Program. The last page of this book lists the other
published studies.

     Most books in the series deal with a particular foreign country,
describing and analyzing its political, economic, social, and national
security systems and institutions, and examining the interrelationships of
those systems and the ways they are shaped by cultural factors. Each study is
written by a multidisciplinary team of social scientists. The authors seek to
provide a basic understanding of the observed society, striving for a dynamic
rather than a static portrayal. Particular attention is devoted to the people
who make up the society, their origins, dominant beliefs and values, their
common interests and the issues on which they are divided, the nature and
extent of their involvement with national institutions, and their attitudes
toward each other and toward their social system and political order.

     The books represent the analysis of the authors and should not be
construed as an expression of an official United States government position,
policy, or decision. The authors have sought to adhere to accepted standards
of scholarly objectivity. Corrections, additions, and suggestions for changes
from readers will be welcomed for use in future editions.

Louis R. Mortimer
Acting Chief
Federal Research Division
Library of Congress
Washington, D.C. 20540

Acknowledgments

     The authors are grateful to individuals in various government agencies
and private institutions who gave of their time, data, special knowledge, and
authoritative perspective. Appreciation is also extended to members of the
Foreign Area Studies staff who contributed directly to the preparation of the
books. These persons include Karen R. Sagstetter, editor in chief, and Kathryn
R. Stafford and Dorothy M. Lohmann who, with the assistance of Janet B.
Connors, edited the manuscript and the accompanying tables and figures;
Harriett R. Blood, who prepared the graphics with the assistance of Gustavo
Arce, and John Dupont and Margaret Quinn who typed the manuscript. The team
appreciates as well the assistance provided by Gilda V. Nimer, librarian,
Ernest A. Will, publications manager, and Eloise R. Brandt, administrative
assistant.

     The calligraphy on the cover of this volume is the work of Reiko I.
Seekins, to whom we are deeply indebted. Special thanks are also owed to Marti
Ittner who designed the illustrations on the title page of each chapter. The
inclusion of photographs in this book was made possible by the generosity of
various individuals and public and private agencies. We acknowledge our
indebtedness especially to those persons who contributed original work not
previously published. Donald Seekins wrote portions of the addendum to the
Introduction.

Preface

     This study replaces the Area Handbook for Japan, which was completed in
June 1973. Three and one-half years later, a general election was held, and
the results seemed to foreshadow the end of conservative rule and the start of
a new day in Japanese politics. In that election the ruling Liberal Democratic
Party, which had dominated the political scene since 1955, failed to gain a
simple majority in the House of Representatives. The expected new era never
materialized, however, and in the election of June 1980 the party registered
an impressive comeback, winning a higher percentage of the popular vote for
the Lower House than at any time since 1967. On the economic front the country
continued to achieve substantial growth, albeit at a somewhat lessened pace
during the 1970s than in the preceding decade. More significant was the
enviable recovery of the economy from the oil crises of 1973 and 1979, a
success without parallel among free-market countries.

     Japan: A Country Study examines especially the changes that have ensued
and the problems that have arisen in the period since completion of the
previous book. Like its predecessor, this study is an attempt to treat in
compact and objective manner the dominant social, economic, and national
security forces at work and to give readers insight into the attitudes and
values of the people. Sources of information used in its preparation include
scholarly works, official reports of governmental and international
organizations, journals, and newspapers. Available books, articles, and other
documents provide important amplification at the end of each chapter. Full
references to these and other valuable sources used by the authors are
included in the Bibliography.

     The spelling of place names follows usage of the United States Board on
Geographic names, as set forth in the official gazetteer published in 1953.
The generic parts of some place names, however, have been dropped in favor of
their English equivalents. Personal names are written in accordance with
Japanese practice, giving the family name first. The prime minister, Mr.
Suzuki for example, is referred to on first mention as Suzuki Zenko,
thereafter simply as Suzuki. Toyotomi Hideyoshi and a few other historic
personages are referred to by their given names, rather than their family
names, since they are better known in the West by those names.

     Measurements are given in the metric system; a conversion table is
provided to assist those readers who are unfamiliar with metric measurements
(see table 1, Appendix). A glossary is also included.

Country Profile

[See Global Map: Map of Japan on the globe.]

Country

     Formal Name: Japan (Nihon or Nippon).

     Term for Citizens: Japanese.

     Capital: Tokyo.

Geography

     Size: The archipelago stretches in an arc 3,800 kilometers from north to
south. Total land area, 377,643 square kilometers. Four main islands,
Hokkaido, Honshu, Shikoku, and Kyushu, and thousands of adjacent, smaller
islands.

     Topography: Largely mountainous. Plains and basins account for less than
25 percent of total land area. Long, narrow archipelago traversed by mountain
ridge separating Pacific Ocean side and Sea of Japan side of the country.
Mount Fuji highest point of elevation. Coast long and varied. Deep indentation
provides some excellent harbors.

Society

     Population: In 1980, estimated 118 million persons. Rate of natural
increase in 1979 of 8.3 per 1,000. Korean residents numbered about 675,000.
Ten largest cities all had populations of more than 1 million; Tokyo about 8.2
million in 1981.

     Education: Literacy near universal among adults. Compulsory education for
nine years provided free to all children six to fifteen years of age.
Vocational training and education for the handicapped provided in special
schools. In 1981 upper level secondary schools had enrollment of 4.7 million,
junior colleges 371,000, universities 1.8 million.

     Health: General health conditions excellent. Increasing life
expectancy-nearly seventy-three years for men; over seventy-eight for women.
In 1978 modern medical services included more than 7,500 general hospitals,
75,000 clinics, and 35,700 dental clinics.

     Languages: National language is Japanese, used and understood by all,
including minority ethnic groups.

     Religion: Traditional, dominant religions are Shinto and Buddhism, both
split into numerous schools and sects. Christians number less than 1 percent
of population. Many Japanese adhere simultaneously to more than one faith.

The Economy

     Gross National Product (GNP): US$1.04 trillion in 1980 (US$8,900 per
capita). Real GNP growth nearly 10 percent per year during 1955-73; slowed
after 1973-74 to about 4 percent per year. Investment about 30 percent of GNP.
In 1981 foreign demand for nation's exports responsible for most of GNP
growth.

     Resources: Scarce domestic natural resources. In 1979 imported 87 percent
of raw energy; 69 percent of wood, lumber, and zinc; over 90 percent of iron
ore, tin, and copper; all of aluminum and nickel.

     Industry: In 1979 manufacturing, mining, construction, and utilities
about 41.6 percent of gross domestic product (GDP); 35.4 percent of total
employment in 1980. Technology-intensive industries, such as electronics and
transportation equipment, leading sectors.

     Services: Domestic trade and other services (including transportation and
communications) accounted for 54 percent of GDP in 1979; about 54.6 percent of
total employment in 1980. Small retail shops most common enterprise, but chain
stores and supermarkets growing in number. Financial, advertising, real
estate, restaurant, and computer software services leading sectors.

     Agriculture, Forestry, and Fishing: Generated 4.5 percent of GDP in 1979;
about 10.4 percent of employment in 1980. Slow growth with employment
diminishing. Farm population 5.3 million persons, and farmland about 5.5
million hectares in 1980. Subsidized rice production exceeded demand. In 1979
domestic production 97 percent of vegetables, 75 percent of dairy products, 80
percent of fruits and meats, 32 percent of cereals, and less than 19 percent
of pulses (mostly soybeans). Fishing industry one of largest in world. Catch
about 10.8 million tons in 1978, with poor growth prospects. Forestry products
32.1 million cubic meters in 1978, less than a third of lumber needs.

     Exports: Merchandise exports US$129.8 billion in 1980; motor vehicles
17.9 percent of total, iron and steel products 11.9 percent, chemicals 5.2
percent, remainder mostly equipment and machinery. Major markets: United
States, Western Europe, noncommunist Asia.

     Imports: Merchandise imports US$140.5 billion in 1980; mineral fuels
nearly half the total value, foodstuffs 10.4 percent, raw materials and scrap
15.2 percent. Major suppliers: Middle East, noncommunist Asia, United States,
and Western Europe.

     Balance of Payments: Current account balance in deficit in 1979 and 1980
following surpluses during 1976-78 period, primarily because of net deficits
in services and transfer payments. Trade balance positive since mid-1960s;
equivalent to 1.7 percent of imports in 1980. Normally long-term capital
outflows and short-term inflows. Overall official settlements balance in
deficit in 1979 and 1980.

     Exchange Rate: Rate 233.69 Yen to US$1 (August 1981). Generally
appreciating during 1971-77 period, slightly depreciating thereafter. Floating
exchange rate system according to international convention.

     Railroads: About 26,880 kilometers in operation in fiscal year (FY) 1978,
of which 79 percent run by public corporations. Passengers in FY 1978 totaled
17.8 billion, and freight 41.2 billion ton-kilometers. Passenger traffic
basically unchanged since early 1970s, slight decline in freight.

     Roads: About 1.1 million kilometers in length in FY 1978, of which 30
percent were improved and 40 percent were paved, including all 40,196
kilometers of national highways. Traffic increasing steadily at about 8
percent per year.

     Ports: Eleven major ports servicing ships with combined capacity of over
50 million gross tons. Largest were Kobe, Osaka, and Yokohama. Merchant marine
totaled 38 million gross tons, third largest in world in 1979. About half of
all international trade traveled on nation's own carriers.

     Civil Airports: Fifteen major airports in urban centers. Passenger
traffic grew at annual rates often exceeding 11 percent during the 1970s.

     Telecommunications: Extremely well developed, fully automated switching
system. Heavy investment in the development of non-telephone services to link
data systems.

Government and Politics

     Government: Constitutional monarchy; emperor defined in 1947 Constitution
as "the symbol of the State and the unity of the people." National Diet
consisting of two houses, House of Representatives and House of Councillors,
which designate prime minister. Outside of the prime minister, the cabinet
consists of no more than twenty persons, each heading one of the twelve
ministries, or one or more of the agencies or commissions of the Office of the
Prime Minister. Constitution of 1947 guarantees wide spectrum of political and
civil rights, as well as independent status of judicial branch. Supreme Court
has power of judicial review.

     Administrative Divisions: Forty-seven administrative divisions below
national government: one metropolitan district (Tokyo), two urban prefectures
(Kyoto and Osaka), one district (Hokkaido) and forty-three rural prefectures,
including Okinawa, which was returned to Japanese jurisdiction by United
States in 1972. These divisions further subdivided into cities, towns, and
villages. All have elected officials and assemblies.

     Politics: Liberal Democratic Party in power since its formation in 1955.
Gaining much of its support from organized business and agricultural
interests, party is divided into powerful factions whose leaders compete to
gain post of party president, who becomes prime minister. Upper level civil
servants extremely influential in formation of policy, particularly those
connected with Ministry of Finance and Ministry of International Trade and
Industry. Important opposition parties: Japan Socialist Party, Japan Communist
Party, Democratic Socialist Party, and Komeito (Clean Government Party).
Smaller New Liberal Club and Socialist Citizens' League are breakaways from
Liberal Democratic Party and Socialist Party, respectively.

     Foreign Policy: Since 1950s "omni-directional" diplomacy has been
pursued, which essentially advocates political neutrality while expanding
economic relations whenever possible. Country has been included within
defensive network of United States military forces in the Pacific. Member of
United Nations and other international organizations.

National Security

     Self-Defense Forces: Total personnel on active duty, approximately
246,000; total reserves, 42,600. Component services: Ground Self-Defense
Force, 155,000; Air Self-Defense Force, 46,523; and Maritime Self-Defense
Force, 44,558.

     Major Tactical Military Units: In 1981 ground force had one armored
division, twelve infantry divisions, one tank brigade, one artillery brigade,
two antiaircraft artillery brigades, one airborne brigade, two composite
brigades, one signal brigade, five engineer brigades, eight surface-to-air
missile groups, and one helicopter brigade. Air element had three fighter and
ground attack squadrons, ten interceptor squadrons, one reconnaissance
squadron, and three transport squadrons. Maritime force had Self-Defense
Fleet, which included four escort flotillas, fleet air force, two
minesweeping flotillas, and two submarine flotillas. In addition five district
units covered various ports, bays, and coastal waters.

     Military Equipment: Domestic production of almost all equipment except
for fighter aircraft. Some manufacturing done under licensing agreements. Most
equipment of United States design.

     Military Budget: Expenditures represented 2.4 trillion Yen or 5.13
percent of total government budget, and .91 percent of estimated GNP for 1981.

     Foreign Military Treaties: Treaty of Mutual Cooperation and Security
between United States and Japan, 1960.

     Police Forces: National Police Agency staffed by almost 2,500 officers
and some 5,500 civilians supervised forty-five prefectural police forces,
Tokyo Metropolitan Police, and Hokkaido Prefectural Police which together
employed over 200,000 police officers. All police forces under civilian
control.

Introduction

     The Japan of the early 1980s exhibited both change and continuity. An
economic revolution had transformed the ruined and defeated country of 1945
into the third most productive nation in the world. The impact of this
revolution could be readily seen in the advanced levels of industrialization,
technological development, and international trade, and in the modernity of
the society, in which extremely high urban densities, mass education, and
other portents of a post-industrial era were already present. Yet for all the
change in these areas, the form and functioning of Japan's political order had
remained remarkably stable since 1955, and parts of the traditional culture
and social system had been strengthened and revitalized.

     Stability has arisen in great part because of the dominance of a single
political party, the conservative and pragmatic Liberal Democratic Party
(LDP), whose identification with policies that brought unparalleled economic
growth and great material wealth to the country had helped to keep it in
power for more than twenty-seven years. Party politicians had been part of a
coalition including big businessmen and bureaucrats, who with the firm, if not
unequivocal, support of much of organized labor had brought off the country's
spectacular successes.

     As Japan's economic recovery had accelerated during the 1950s, an almost
exclusive orientation to economic growth had emerged as a matter of practical
politics at the highest levels of party and government. The LDP had been
organized in 1955, some three years after Japan had regained its sovereignty,
and by uniting the various conservative groups under a single umbrella, had
achieved a dominant political position for itself. The party saw that economic
recovery would bolster its hold on leadership, promote national unity and
stability, buttress national security, and deprive leftist opposition critics
of a key issue.

     The LDP and the government adopted the strategy of rebuilding Japan as an
industrialized nation, which would be based on scientific principles and
technology borrowed from the West and would participate extensively in
international trade. The premise that economic efficiency, productivity, and
growth would hinge to a large extent on involvement in the greater world
economy was consistent with the relative scarcity of Japan's resources and
arable land in relation to the population it must sustain. Public support
coalesced behind the drive for economic growth, fanned by the prospect of
improved livelihoods for all and a brighter future for the country. The very
strong sense of national identity may have also lent zest to the effort,
making it into something of a shared national mission of survival and renewal.

     The quickening pace of growth during the 1950s had testified to the
business and industrial acumen of the society; but additionally the nation's
hand had been greatly strengthened by its relationship with the United States
as a partner in economic growth and in defense. The United States had played a
major role in supporting social, economic, and political reform and recovery
during the occupation, and in assisting Japan in gaining access to foreign
resources and markets later in the decade. Moreover given constraints on
rearmament defined in the 1947 Constitution, the leadership had relied on
United States power for the defense of the nation and had accepted that
country's perspective on a wide range of international issues, while keeping a
low foreign policy profile itself. Beyond these matters Japan had also
benefited by the free trade environment that the United States at that time
had been fostering around the globe.

     The development strategy proved singularly successful. Between 1949 and
1973 the real gross national product had risen at an annual compound rate of
9.2 percent, exports by 14.7 percent, and real per capita income by 8.3
percent.

     Behind this achievement lay not only the discipline and commitment of the
people, but the benefits that had accrued from the base of modernization
initiated under Meiji rule (1868-1912) and to some degree from the earlier
Tokugawa period. This legacy included a literate population, a seasoned
bureaucracy, and corporate and business leaders experienced in large-scale
industrial and commercial activity. The Meiji era had provided precedents as
well for strong government interventionist and protectionist policies and
encouragement to private business to learn from abroad. Similarly, since 1952
the government had assumed a major role in economic affairs, among other ways,
by providing funding and credit, protecting infant industries from foreign
competition, and promoting or allowing cartels and mergers when it would
benefit producers. In a highly competitive domestic market, management had
offered major incentives for efficient production, while labor had kept its
wage demands in line with productivity, which showed steady appreciable gains.

     Japan had first developed its chemical and heavy industries, sustaining
itself in the meantime by producing and trading a variety of small
manufactures. This done, in 1973 it had turned its attention to growth in
assembly and knowledge-intensive industries, whose development was certain to
have far-reaching and irreversible consequences both in Japan and elsewhere.
Although it was hard hit by the oil crises of 1973 and 1979, it had
nevertheless achieved higher growth rates during these years than other
industrial nations. Thus by early 1982 it had become one of the world's most
economically powerful countries, viewed by some observers as a model of
efficient modernization and scrutinized by Western entrepreneurs for insights
into its success.

     By the early 1980s Japan was moving into research areas with a high
potential for rapid technological advance, such as electronics (including
integrated circuits and solar cells), biotechnologies (including DNA
manipulation and cell fusion), and atomic energy-related equipment-hoping for
breakthroughs. Public policy foreshadowed a shift to a search for alternate
energy sources, an emphasis on innovation as opposed to adaptation from
abroad, use of new industrial materials, and development of new concepts in
manufacturing.

     The country's economic achievements have brought new standards of
affluence to its people, many of whom readily assign much of the credit to the
LDP and the government. The level of affluence and continuing political
stability and security has left the predominantly leftist and fragmented
opposition with little room to maneuver, and partisan attacks on the LDP on a
wide range of issues and policies have failed to generate momentum sufficient
to loosen the conservative grip on the levers of power. At the national level
the opposition parties, including the Japan Socialist Party, the Japan
Communist Party, the Komeito, and the Democratic Socialist Party, have been
generally unable to form a viable united front, and their role has been
largely confined to that of critic, in what has been termed Japan's
"one-and-a-half party" system.

     In early 1982 the forces of pragmatism and stability manifested in the
dominant coalition of conservative politicians, big businessmen, and
bureaucrats remained firmly in place. The LDP had dominated the center of
power so long that to many Japanese in some respects the identities of the
party and the government were all but merged. Governmental authority was
legitimized through freely contested partisan political activities culminating
in elections: since the democratic reforms of the occupation it had been an
axiom of Japanese politics that conflicts should be resolved through the
civility of the electoral process.

     The LDP, stressing stability and pragmatism and upholding the principles
of parliamentary government and the promotion of economic growth, enjoyed a
wide base of popular support. Party appreciation of the importance of
agriculture to political power was reflected in the LDP's close association
with its rural constituency; this awareness was borne out in its backing of a
rice-support policy and of an electoral districting system that gave rural
areas disproportionate representation in the National Diet. Among the largely
urbanized population as well, however, the LDP could also draw on a broad base
of goodwill owing to the favorably perceived levels of national prosperity. To
most observers it was evident that, barring dramatic shifts in global
politics, or Japan's economic position, the party would continue to receive
popular support in the foreseeable future.

     Over the years the party had developed an effectively functioning process
of policy formulation and implementation that depended on close collaboration
with the bureaucracy and corporate management. Policymaking was done in great
part in the executive rather than in the legislative branch of government, and
business had built up powerful organizations to press its interests and points
of view with senior bureaucrats. Beneath the veneer of harmony and
consensus-making operations of the system at the highest levels, however,
rivalry and intense competition prevailed; time-honored tradition held that
the way to improvements in career or economic well-being was through a
patron-client relationship or membership in a faction that would press its own
causes to advantage. Breakdowns in the process occasionally produced episodes
not in the national interest such as the Lockheed scandal of 1976.

     With conflict over economic issues foreclosed by growth successes,
political competition between the LDP and opposition forces has tended to
focus on the party's handling of relations with the United States and major
foreign policy issues in which national security arrangements have been a
crucial consideration. A security treaty between the United States and Japan
enacted in 1952 was replaced in modified form by another in 1960, amidst the
worst political violence seen in Japan in the post-World War II period.
Opposition groups, strongly opposed to what they perceived as Japan's
embroilment in global United States strategy, had mobilized massive
demonstrations supported by other elements more broadly representative of the
population, including intellectuals and students. Ultimately the 1960 Treaty
of Mutual Cooperation and Security between Japan and the United States was
ratified, and it has continued in force since that time, affording Japan the
protection of the United States nuclear umbrella. The United States is
responsible for aiding Japan in the event of an armed attack on
Japanese-controlled territory, and United States bases and troops are
maintained on Japanese soil, both to protect Japan and to "maintain peace and
security in the Far East." The treaty does not require Japan to come to the
defense of the United States, however. Constitutional and political
constraints limit the size, structure, and mission of Japan's Self-Defense
Forces (SDF) and preclude its participation overseas in foreign military
ventures.

     Opinion polls taken in 1981 revealed substantial increases in public
support for SDF and the treaty, but a marked reluctance to become deeply
involved in defense issues, emerging out of the country's bitter wartime
experience, has continued to characterize the public mood. The Constitution
states that "the Japanese people renounce war as a sovereign right of the
nation and the threat or use of force as a means of settling international
disputes." No less importantly, the government has consistently pronounced its
commitment to a non-nuclear weapons policy, conforming to the "three
non-nuclear principles" of not manufacturing, possessing, or permitting the
entry of nuclear weapons into the country.

     Other prevailing aspects and attitudes in Japanese society could be
attributed to the impact of urbanization and modernization in the post-World
War II period. As members of a highly educated, urbanized, and dynamic
society, the majority of the people enjoyed a materially better life than
prewar generations, or even than they themselves had a decade earlier. Work
and study demanded long hours, but popularization of the arts was reflected in
the vitality and creativity of millions of children and adults pursuing
traditional and modern art forms in a society that had long placed a high
value on the aesthetic aspects of life.

     Traditional values of community, hierarchy, and harmony reinforced the
stability of the society, and the legacy of social discipline lingered on in
both personal and public life, despite flagrant contradictions that sometimes
occurred. It could be argued as well that the value placed on self-realization
and striving had contributed substantially to overall development in a society
in which upward mobility was dependent in great part on personal merit and
which was characterized by intense personal competition. Although traditional
values continued to be upheld, there were indications that Japanese society
could be moving closer to the emphasis on individuality and personal freedom.

     The benefits of economic modernization have not fallen equally upon all
segments of the population. Better off than others were those persons working
for one of the giant corporate enterprises (and thus protected by the system
of permanent employment) and those in professional occupations. Access to this
favored realm was the cherished dream of most Japanese boys and motivated the
intense competition that permeated the education system at secondary levels
and below. Those who made a poor showing in examinations, thus more or less
foreclosing any possibilities for a bright personal future, occasionally
expressed their frustration in antisocial behavior. The aging of the
population was a concern both to economic planners and to older Japanese
themselves. Traditional modes of family support have gradually become less
secure; yet the government, faced with massive budget deficits in the early
1980s, has targeted pensions and medical and welfare benefits for retirees as
part of a spending cutback package. Even working-age Japanese were not without
concerns about the quality of life; housing conditions were not adequate, and
environmental deterioration was a major public issue.

     Other than housing and environmental issues, the two main domestic tasks
facing the administration in the early 1980s were alleviation of energy
dependence and budget deficits. The administration of Prime Minister Suzuki
Zenko, formed in July 1980, has been addressing both problems. In the energy
field it has been stressing measures to conserve energy and develop alternate
sources to reduce imports (75 percent of total energy supply). As for budget
deficits, the years of rapid growth had been marked by high government
spending and the buildup of costly bureaucratic machinery. After 1973, budget
deficits, triggered by oil price hikes, began to rise rapidly; but public
sentiment and corporate opinion strongly opposed tax increases. The Suzuki
government has thus attempted to deal with the problem as much as possible
through administrative reform and cutbacks in costly programs.

     On the foreign policy front, trade and defense were the major issues,
particular concern being given to relations with Japan's principal partner,
the United States. The economic interests of the two countries were no longer
as complementary as they had once been, and because trade surpluses in Japan's
favor were showing no signs of decline and the United States and Western
Europe were suffering high unemployment, the country has been experiencing
considerable pressure from its trade partners for appropriate remedy. Critics
among Western industrialists and businessmen have explained away the
competitiveness of Japanese goods by accusing the Japanese government of
subsidizing industry, underpaying the work force, and dumping goods in export
markets, while keeping its own markets resistant to imports. Of special
concern to Japanese officials responsible for keeping open the country's vital
trade lifeline was the argument that Japan has an unfair edge in trade because
of its relatively modest defense burdens.

     Officially there has been action on both trade and defense fronts. United
States-Japan defense cooperation had made significant progress since the
mid-1970s, while Japan's defense outlays for 1982 were increased by 7.75
percent over the previous year, bringing the total expenditure to 2,580 Yen
billion (for value of the yen-see Glossary). Japan also made what it termed a
nonmilitary contribution to international peace and security, especially
through economic aid to developing countries and had doubled its expenditure
in this area in the 1977-80 period. In early 1982, for example, it was giving
consideration to providing a substantial sum in economic aid to the Republic
of Korea (South Korea) as part of an overall scheme to help its Asian
neighbors (but not necessarily in response to Seoul's demands for such aid on
grounds it was helping to underwrite Japan's defense).

     Responding to Western pressures for trade liberalization, Japan in early
1982 announced a modification of import regulations affecting what are
generally termed nontariff trade barriers. Such nontariff barriers, for
example, may call for exhaustive testing requirements on certain products or
establish unusually strict safety standards. Subject to cabinet approval,
sixty-seven such regulations were to be set aside. Their elimination would
significantly facilitate import of certain medicines, cosmetics, household
goods, electrical appliances, automobiles, and other commodities, and would,
from the perspective of those seeking to export to Japan, significantly
improve, but not entirely solve, problems of market access.

     The defense increases and trade regulation changes were indications that
with the significant global developments of the 1970s involving Soviet,
Chinese, and United States interests, Japan was reevaluating its position in a
multipolar world. In the latter part of the decade, for example, its relations
with China were considerably strengthened, and in early 1982 review and
reexamination were being undertaken on a broad spectrum of foreign policy
issues. A major buildup of Soviet forces in the Asia/Pacific region has been
of growing concern to Japanese officials, and further afield turmoil in the
Middle East and other trouble spots has heightened fears of escalating
tensions between Moscow and Washington and interruption of the flow of oil.
Whether because of constitutional and public pressures at home or for other
reasons, party and government leaders nevertheless have been responding with
caution to United States urgings that Japan strengthen its defense
capabilities.

     As a number of observers have pointed out, much of Japan's success in the
past has arisen out of an acute sense of isolation and of vulnerability to
foreign developments over which it has no control. These sentiments lie deeply
imbedded in the society and are not likely to change in the foreseeable
future. Accordingly, even as many Japanese leaders stressed the importance of
mutually beneficial ties with the world community, and the government moved to
open Japanese markets, Japan has been pressing forward with research and
development programs stressing domestic innovation and self-reliance.

     This ambivalence reflected Japan's ongoing consideration of its global
responsibilities and concern about its international image. As the first
nation outside the West to become a giant industrial power, it has been
confronted by complex political and economic questions. Its range of options
for the 1980s has given rise to much discussion among national leaders and
social critics, out of which, however, a readily discernible consensus on
future directions has yet to emerge.

January 1982

                                     * * *

     In the fall of 1982, when this book was being published, a change took
place in Japan's political leadership. On October 12, Suzuki Zenko announced
that he would not run for a second term as Liberal Democratic Party (LDP)
president. this was tantamount to resignation as prime minister, given the
LDP's solid majority in the National Diet. The announcement came as a surprise
to many observers, who expected that Suzuki would have no difficulty being
reelected in the November party presidential election. He was quoted, however,
as wishing to step down in order to "sweep away the bad faith and hard
feelings" occasioned by intraparty factional feuding.

     The weeks following Suzuki's announcement witnessed unsuccessful attempts
by LDP leaders to reconcile mainstream and anti-mainstream factions and choose
a new party leader. It was decided to hold a primary election similar to the
one through which Ohira Masayoshi was chosen prime minister in 1978. By that
method, grass-roots members of the LDP would select candidates for the party
presidency, one of whom would be chosen prime minister by LDP members in the
Diet. The results of the election, which was held on November 24, 1982, gave
about 58 percent of the approximately 1 million votes cast to Nakasone
Yasuhiro, a mainstream figure supported by the powerful Tanaka Kakui and
Suzuki factions. Nakasone, a conservative who favors revision of the 1947
Constitution and who is (within the Japanese context) "hawkish" on defense
matters, was designated prime minister on November 26. The same day, he named
his government. His selection for cabinet positions of seven men close to
Tanaka (members of his own faction received only two positions) was
controversial, raising questions about the influence of the former prime
minister, who still maintains the largest faction in the LDP.

     In the summer of 1982 the Diet passed a law that changed the way in which
members would be elected to the House of Councillors from the national
constituency. Previously voters chose them directly; under the new system they
would cast their ballots for parties rather than individuals. Individual
councillors would be selected from lists submitted by the parties, the number
being decided by the parties' proportion of the vote. According to its LDP
sponsors, the new law would reduce the expense of campaigns and free
individual councillors from the rigors of nationwide campaigning, but critics
see it as benefiting the larger or better organized parties to the detriment
not only of independents but also of the smaller opposition parties.

     A domestic issue that had divided leftist and rightist opinion for many
years-the content of public school history and civics textbooks-had
international repercussions in the summer of 1982 after the School Textbook
Authorization Research Council of the Ministry of Education, Science, and
Culture issued new guidelines to textbook publishers on historical
interpretations, including those dealing with Japanese activities during World
War II. New textbooks, according to the guidelines, should speak of Japan's
"advance" into China, Southeast Asia, and the Pacific during the 1930s and
1940s, rather than "invasion" or "aggression." These changes provoked the
indignation of neighboring Asian nations, particularly China, which accused
the ministry of attempting to "prettify Japanese aggression against our
country," and South Korea, especially offended by guideline descriptions of
Korean independence demostrations against the Japanese colonial government
before 1945 as "riotous activities." External pressure and criticism was
resisted by Japanese officials and politicians, who maintained that the issue
of textbook revision was purely a domestic matter, but in late August 1982
Minister of Education Ogawa Heiji asked the research council to draft new
criteria for textbook authorization in order to reflect the "spirit of
friendship" between Japan and other Asian nations.

     On the economic front, Japan continued to forge ahead. In late 1982, for
the third consecutive year, it was judged the world's most competitive economy
by a panel of economists, corporation executives, and labor leaders
representing more than twenty industrial countries.

     Shortly after Prime Minister Nakasone took office there were indications
of Japan's continued intent to play a more positive and constructive role in
world affairs. Such intent was reflected, for example, in the development of a
major new assistance program for South Korea and in the announcement of a
lengthy list of trade concessions. Foreign criticism of Japan's trade policy
continued, however, as Nakasone prepared for an official visit to Washington
in mid-January 1983, and observers pressed both Japan and the United States to
give serious attention to resolving sources of trade friction during the
scheduled discussions between Nakasone and President Ronald Reagan. Defense
issues were also expected to be a topic of discussion.

Frederica M. Bunge
January 1983