Protecting Japanese Business

KIRK, DONALD

'FREE' MARKETEERS Protecting Japanese Business bydonaldkrk Tokyo The setting was the elegant living room of an American bank executive. The guests were business colleagues and their wives, over...

...The agreement between the two countries that got Japan's mighty telegraph and telephone company, NTT, to open up billions of dollars worth of contracts to competitive bidding and not simply restrict its business to Japanese companies was an example of this approach...
...The disheartening truth, though, is that no amount of words or posturing at conferences can cover over the differences that separate Japan from the other six leading Western industrialized nations, and a host of lesser ones...
...In every crunch American ambassadors and emissaries from Washington raised the specter of "protectionism" by an angry Congress if the Japanese did not yield on imports...
...Not the least extraordinary facet of Rempell's ordeal was the insouciance of the American Embassy, which refused to take up his case with Japanese authorities...
...government similar to Japan's Ministry of International Trade and Industry, which closely reviews and often guides, advises and promotes Japanese business abroad...
...specified for only the first two years...
...To check your engine oil, pull out the dipstick, wipe it clean, insert it again, then pull it back out...
...Their worst nightmare is of a group of foreign leaders banding together against them?a repetition of the coterie of " ABCD" powers (America, Britain, China, and the Dutch) that cut off their supplies of oil and other raw materials before World War II...
...It will last a total of three years, with the limits on car exports to the U .S...
...Suzuki had wanted some amplification of that point in the communique, and he stressed at once upon his return home that the term had "no military meaning...
...Each time, Tokyo made certain concessions, first peeling away tariffs and quotas on a number of major products, then forsaking "trade offensives" and, by the end of the decade, claiming even to oppose the "nontariff barriers" to imports that Washington insisted were to blame for soaring trade deficits...
...A quick-maintenance inspection can help you spot potential trouble...
...All 1981 and most older General Motors cars have fuel caps that twist on and then click when secure...
...Look at tires for signs of wear or worn-out edges which can indicate improper inflation or the need for alignment...
...Foreign businessmen and research organizations engaged in an endless game of one-upsmanship for the best stories of their efforts to beat the Japanese system, particularly the custom of distributing almost every conceivable item through middlemen...
...Before you drive into a self-service station, it's helpful to know whether your car takes leaded gas, unleaded gas, or diesel fuel, and also where your fuel tank is located, so that you can pull up to the proper pump and have the fuel tank close at hand...
...Despite their oratorical inhibitions, in fact, the Japanese have managed to stress at every conceivable forum that they are incurable addicts of the "free-trade principle," an expression they have adopted as their own with the same enthusiasm they exhibit in seizing upon foreign expertise and invention...
...of its true sensitivities in this area is the fact that every time Japanese ministers confer with their American counterparts these days, they appear somewhat ambivalent...
...Embassy "side with Japan...
...5. When the trigger clicks off, remove the nozzle from the tank and turn the pump lever to "OFF...
...Inevitably, Reagan and Suzuki were shown shaking hands in news photographs, but the Japanese still had not successfully gotten across their message: that they want no part of Reagan's military buildup...
...The latter, though, issimplyareflection of how deathly afraid the Japanese are that President Reagan and the U.S...
...Hespent four and a half months in prison before he was freed on bail, and upon his conviction five years later, he was given a heavy fine along with a suspended jail sentence...
...Nor did his second "summit" with Reagan—an hour-long breakfast conversation during the deliberations of the leaders of the seven industrialized pillars of democracy in Ottawa last month—do much to clarify matters...
...You'll be putting self-service stations to their best use if you include maintenance checks in your stops for gas...
...trade deficit, it says, the White House should assign an almost Cabinet-level official and staff "solely to the Japan trade issue...
...Under existing circumstances, negotiators have managed merely to paper over the chasms, often in a style that circumvents or postpones solutions...
...After you fill your tank, remember to clean your windshield...
...Your owner's manual tells you how...
...Perhaps more than the "nonoral" traditions, what accounts for Japan's inability to convince the U .S...
...Look for fraying, cracks, or other signs of wear on belts, too...
...This advertisement is part of our continuing effort to give customers useful information about their cars and trucks and the company that builds them...
...But too many-people think that filling a fuel tank is all there is to self service...
...Nonetheless, Japanese exports rose dramatically for most of the rest of the '70s in the face of forecasts?or at least initial false hopes—that they would decline because of stiff foreign competition as the yen went up in value...
...Far-fetched as the explanation might sound, Japanese bureaucrats and diplomats do often seem dismayed and embittered over their failure to convey their country's position...
...Once a month, you should use a tire gauge to check the pressure...
...HOW TO USE A SELF-SERVICE GAS STATION YOU CAN SAVE MONEY BY DOING SIMPLE CAR MAINTENANCE YOURSELF...
...Besides jacking up prices to levels far above those in the U.S...
...The type of fuel your car requires should be printed on the instrument panel, and the fuel tank location can be found in the owner's manual...
...market, he replied, "Zenshoshi-masu," "I'll handle it...
...6. Replace your fuel cap...
...to providing long-term military security, while Japan clings tenaciously to an independent stance in an increasingly hostile world...
...The guests were business colleagues and their wives, over for drinks, horsd'oeuvres and afew potentially enlightening words from a senior official with the Ministry of Finance —very probably the center of power in Japan...
...General Motors People building transportation to serve people...
...Most GM cars are equipped with maintenance-free batteries...
...Since Japan accounts for approximately half the U.S...
...It's responsible for protecting American business interests overseas, but it's competing with those interests...
...They cite their long-standing policy against investing more than 1 per cent of their gross national product in what they euphemistically refer to as the "Self-Defense Forces," in deference to Article Nine's proscription against any form of military activity...
...officials learned to their consternation two years later...
...and Europe, the middlemen generally preferred to deal with long-standing, usually Japanese, contacts...
...The fact that his Foreign Minister then resigned amid protestations by the Foreign Ministry that the U.S...
...The memory of that failure is ingrained in Japan's psyche, despite the superficial impression of visiting foreigners that the Japanese have forgotten the experience, have "recovered" completely and now are ready to match their economic achievements with military displays that would turn their country into a true "bulwark of the free world...
...At the minimum, the Chamber urges the appointment of a deputy secretary-level special trade representative as "the highest-ranking, Washington-based official" with "primary responsibility" for trade relations with Japan—and the capability "of sustaining pressure on the Japanese government...
...Thus, in August 1979 Nixon inflicted the great "shokku" of Japanese-American postwar relations, imposing a 10 per cent surcharge on imports into the U.S...
...Japanese diplomats and trade officials astutely, smilingly saw to it that the Ottawa summit contented itself with a dish of watered-down pablum that did not get into the central issues at all...
...The oil should be between the marks labeled "FULL:' and "ADD:' If it's below "ADD',' add a quart of the oil recommended in your GM owner's manual...
...But it's still wise to make sure their cables are on tight and the ends aren't frayed...
...Asked to staunch the flood of Japanese textiles pouring onto the U.S...
...That notice came to us 15 minutes before our morning Cabinet meeting," recalls Noboru Takeshita, a former Finance Minister who was then chief Cabinet secretary...
...and freeing the dollar from convertibility into gold...
...That was for us the decade of uncertainty," says Takeshita...
...Tactless as the execution of the Nixon shock may have been, it merely marked the beginning of a whole series of episodes throughout the decade that had American negotiators alternately bullying, cajoling and pleading on a wide range of issues, while protesting the importance of the alliance and their love of the Japanese...
...Confronted by evidence to the contrary, a typical bureaucrat hastily adds the qualifier, "in principle," and encourages the foreigner to work harder and show greater "understanding" in his efforts at penetrating the barriers...
...The impact of the surcharge, lifted by the end of the year, was eclipsed by the steady decline of the dollar against the yen as a result of the end of gold convertibility...
...Congress will finally go through with protectionist threats if something positive is not said—especially since Japan's trade surplus this year is well on its way to a record $13 billion...
...Remember to keep the windshield washer reservoir filled with fluid, too, especially in the winter when you use it most often...
...3. Remove the nozzle from the pump and turn the pump lever to "ON" 4. Place the nozzle in your fuel tank and squeeze the trigger...
...Most self-service pumps have easy-to-follow directions printed right on them...
...This would permit the development of "a consistent" policy in place of the present sporadic "high level static" whenever some controversy arises...
...The Japanese, he said, "are nonoral people," they have never been great orators...
...I had great difficulty knowing what to say...
...His view may be prejudiced, yet certainly American officials here have frequently adopted an attitude of self-conscious "appreciation" of the local situation that ruffles businessmen fighting on the front lines of a full-fledged trade war...
...Your GM owner's manual can be an invaluable guide to proper car care...
...Most of all, Tokyo does not at this stage want a repetition of the era, beginning in the closing years of the 19th century, when they built up a mighty military machine merely to see it crumble in a war that cost 3.5 million Japanese lives...
...Please use it...
...At the same time, the Japanese claim their markets now are possibly among "the most open in the world...
...It was that point, beyond all others, that they sought to make at Ottawa as part of their effort at staving off protectionist pressures everywhere...
...After heated off-again, on-again talks, lasting for several years, NTT finally yielded...
...One classic "misunderstanding" occurred in the late Prime Minister Eisaku Sato's meeting at the White House with President Richard M. Nixon in 1969...
...At the same time, they point out that this year's 7.5 per cent increase in military spending is higher than that recommended for any other government agency, and claim they are anxious to upgrade the quality of their weaponry...
...To judge from the outrage of Japanese manufacturers over having had to accept any kind of "arrangement," the answer is, very probably...
...Never remove the radiator cap when the engine is hot, because pressurized coolant may overflow and burn you...
...The Europeans spew forth flowery speeches at conferences, and their tongue-tied Japanese counterparts mumble only phrases in reply...
...Periodically check your brake, transmission, and power steering fluid levels...
...Fuel fumes are highly flammable, so you should never smoke at a service station...
...The United States and Japan are joined by a military security treaty, but the visitors apparently could not convince the Americans, the Russians and everyone else that they have no real intention of betraying the underlying meaning of Article Nine of their postwar "peace" Constitution, drafted at the behest of General Douglas MacArthur when he ruled Japan as Supreme Commander of the Allied Powers...
...When you're filling up, try to avoid topping off your tank, since it may overflow...
...If fuel does spill on your car, you should wash it off as soon as possible, to avoid paint damage...
...There was no guarantee, though, that it would not arbitrarily give the best contracts to its traditional Japanese suppliers while tossing some of the crumbs, for the sake of appearances, to foreigners...
...Company officials kept saying the foreigners did not know "the NTT system" and did not want to adjust, an indication that they would make nothing more than cosmetic changes...
...A solution suggested by Rem-pell is the formation of an entirely new department in the U.S...
...There are some things, however, that the directions may not tell you...
...Will the Japanese then export more cars than before to the U. S.—with a new wave of pressure by American labor unions and manufacturers alike for protectionist measures...
...2. Remove the fuel cap...
...If the level looks low, add coolant to this tank...
...More than ever, "partnership" commits the U.S...
...Although few American businessmen are as free-wheeling or outspoken as Rempell, the relatively staid American Chamber of Commerce in Japan has evinced some of the same sentiments in a highly critical white paper that reflects years of pent-up irritation in dealing with both American and Japanese officials...
...i GM cars, the recommended pressure is on the left front door edge or inside the glove compartment...
...Recommended pressure is for cold tires, so check them before you drive more than a mile...
...Lately there has been even more cause than usual for unhappiness...
...You'll do your automobile the most good if you also include a few simple maintenance procedures...
...Extending the thought, he observed that the Japanese were "nonoral lovers"—the first reference to kissing did not occur in Japanese literature until approximately 300 years ago, and even now Japanese men disdain lavishing kisses upon their wives, much less expostulating with " I-love-yous...
...But they do so with a sense of inner torment that few Americans can really comprehend, and the popular view prevails that the United States is exercising dictatorial power over supine leaders even though Japan's deeply conservative government has been stolidly fending off American pressure ever since the occupation...
...Rempell paid for his effrontery by his arrest seven years ago on what appear to have been trumped-up char-gesof evading customs duties...
...Most GM cars have a see-through recovery tank...
...The Japanese are capable of compromising at the last minute, as they did on the ticklish question of how many cars to export to the U nited States when there was immediatedanger of Congress passing a bill that would have set specific ceilings...
...Still, he kept the guests entertained with an elaborately contrived explanation o f the frustrations felt by his country's leaders, diplomats and bureaucrats seeking to win a sympathetic understanding of their international dilemma...
...They fear the Russians will view them as the first target in a war, and are eager to avoid provoking the Kremlin to the extent that it will feel Donald Kirk regularly reports for The New Leader on Japanese affairs...
...The automobile agreement, concluded before Suzuki's Washington trip when U. S. Special Trade Representative Bill Brock came out here on a last-minute invitation, was another example...
...If you don't find instructions on the pump, here's what to do at most stations: 1. Turn off the engine...
...An especially bizarre story was that of Steven Rempell, a young American entrepreneur who naively believed he could defy the dealers in liquor—among the more shockingly high-priced items on supermarket shelves—by importing from his own company in Hong Kong and then selling directly to stores, bars and hotels...
...Japanese officials now speak of the deal as "a bad dream" that everyone will forget when it expires...
...The process of recrimination, debate and some semblance of understanding emerges as the dominant pattern in U.S.-Japanese relations...
...He did not, however, mean that he would necessarily acquiesce to the American demand, as U.S...
...Also, fuel caps are easy to forget and lose, so when you remove the cap try to wedge it in between the door to the tank and body of the car, where you're not likely to forget it...
...Afterward, I was supposed to brief the press...
...You should also check the coolant level...
...Rempell, back in business in Tokyo purveying TV dinners to the fad-hungry citizenry, accuses the State Department of "totally defending Japanese interests" and claims that senior career diplomats in the U.S...
...Gasoline or diesel fuel usually costs less at a self-service station...
...The ruckus raised by the use of the word "alliance" in the joint communique issued by President Ronald Reagan and Prime Minister Zenko Suzuki at the conclusion of their meetings in the White House last May is a clear case in point...
...The State Department has always considered political and military matters more important than economic ones," complains Rempell, withlessex-aggeration...
...You don't need any expensive tools—just a good quality tire gauge, a rag or paper towel, an oil can spout kept in a plastic bag, and a jug of premixed windshield washer fluid, such as GM Optikleen...
...Theofficial, who had done graduate work at an Ivy League university, did not offer any concrete perceptions beyond those already available in the ubiquitous, enormous national press...
...If you've been driving in bad weather, be sure to wipe off your side mirrors and headlights, too...
...obliged to increase its military strength still further in the western Pacific...
...Like Rempell, the Chamber has criticized the United States most strongly for lacking any semblance of a cohesive, let alone decisive, policy...
...and Japan were certainly allies hardly negated Suzuki's point...
...I remember how complex and serious the Cabinet meeting was that day...

Vol. 64 • October 1981 • No. 16


 
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