ACCJ Journal August 2008 by Paradigm

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¥800 / August / 2008

C H A M B E R O F C O M M E R C E I N J A P A N • A U G U S T 2 0 0 8

New employment laws What headhunters want High-risk home loans What’s mind mapping?

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MEETINGS, INCENTIVES, CONFERENCES AND EXHIBITIONS GUIDE TO BUSINESS OUTSIDE TOKYO

Contents

Volume 45 / Issue 8 / August 2008

特集 Features カバーストーリー ACCJ60周年記念特集

エピソードや将来予測から年表、今昔比較まで、ACCJ歴代役員の寄稿で構成する大特集ジュリアン・リアル

経営者は「知らない」では済まされない

法律問題や思わぬ誤解による手痛い出費を回避するためにも、新しい労働契約法はすべての経営者が理解しておかなければならない。

Cover Story ACCJ 60th Anniversary Special 14 Contributions from former ACCJ officials, including anecdotes, predictions, timeline, and then-and-now comparisons. By Julian Ryall

Employers: Read This 28 Every employer should understand this new work contract rule to avoid legal problems and costly misunderstandings. By Aki Tanaka and Jiri Mestecky

田中亜希、ジリ・メステキー

技能を備えた逸材を獲得するには？

女性、監査役、バイリンガルのリーダー。いずれも人手不足の売り手市場だ。マーティン・フォスター

住宅ローンの迷宮

貸し手は甘言を振りまいているが、外国人にとって日本で夢

のマイホーム購入はそんなに簡単なのか。ある外国人のお話。ジョン・ハリス

ビジネスマインドマップ

すぐに覚えられるテクニックながら、スタッフの革新力やコミュニケーション力、理解力の向上に役立つ方法を紹介。ジェフ・ボッティング

Search for the Purple Squirrel 34 Women, auditors and bilingual leaders are flavor of the month in a seller’s market suffering a skills shortage. By Martin Foster

Home Loans from Hell 42 Lenders promise much, but is it really that easy to buy your dream home in Japan? Here’s one foreigner’s story. By John R. Harris

Business Mind Mapping 46 This easy-to-learn technique helps companies foster innovation, communication and understanding among staff. By Geoff Botting

August 2008 / ACCJ Journal / 1

PUBLICITY

HumanSigma and Your Company’s Health This business “vital sign” provides a leading indicator of your organization’s well-being By John H. Fleming, Ph.D., and Jim Asplund, authors of Human Sigma: Managing the Employee-Customer Encounter

o ensure that you stay healthy, you regularly visit your physician, who evaluates your physical health by assessing your vital signs. What is your heart rate? Is your breathing or respiration normal? And what about that critical measure of how your heart rate and breathing interact — your blood pressure? Just like your regular visits to the physician, organizations have vital signs that need to be checked regularly. And if heart rate, respiration, and blood pressure are the vital signs of human health, then in sales and service organizations, the key vital signs are its customer relationships, employee relationships, and overall financial vitality. Links to financial performance The relationships among employee attitudes, customer requirements, and financial performance are usually viewed as a series of steps: engaged employees create engaged customers who foster organizational success by delivering positive financial outcomes. But the ways in which employees and customers interact to enhance a company’s financial vigor are more complex than a simple chain of factors. Integrating the vital signs of employee and customer engagement into a single performance construct supported by a single performance measure — the HumanSigma metric — provides a comprehensive means to capture and understand this dynamic system. HumanSigma performance is a critical vital sign that shows whether a company’s human systems are performing adequately.

Work units that performed well on the customer and employee engagement measures—we call them “optimized” — tend to deliver considerably better financial results than those that score poorly on the two measures. And work units that perform well on both measures also outperform those that scored high on one, but not both, of these metrics.

And if they’re not, its financial systems soon may not perform adequately as well. HumanSigma tools — employee and customer engagement measures — are really leading indicators of the financial performance a company hopes to achieve. Optimize But it’s not enough just to measure your company’s HumanSigma performance. Once your physician evaluates your vital signs, for instance, you’ll find out if you need to adjust your behavior. Are you eating properly? Getting enough sleep? Exercising regularly? Similarly, once a company measures its HumanSigma performance, it’s time to make adjustments — because our experience working with companies who have measured, then improved, their HumanSigma performance shows they gain a substantial boost in financial performance.

How does this look in the real world? • In a high-end retail chain, we found that optimized HumanSigma stores generated $21 more in earnings per square foot of retail space on average than all other stores combined—a difference that translated into more than $32 million [¥3.4 billion] in additional annual profits for the entire chain. • Within a consumer bank, optimized HumanSigma branches grew their number of accounts, total deposits, and total loans at twice the rate of the remaining branches, a difference that translated into more than $162,000 [¥17.3 million] in additional profit growth for the bank each month. Financial and operational measures, in large part, provide a picture of the past. Measuring the indicators that predict financial performance and understanding, and using them permits businesses to control the things that matter — before it’s too late. Monitoring your company’s customer and employee vital signs is no longer something that’s a “niceto-have” item. In today’s business environment, it’s absolutely essential.

Contents

Volume 45 / Issue 8 / August 2008

Departments Note from the Editor 11 President’s Message 13 Media Watch 25 Minicars. Citrulline fad. Young flunkies. Car subsidies. Data backup. By Mark Schreiber

On the Spot 32 Kenneth Roth, executive director of Human Rights Watch, talks about why his organization is opening a Tokyo office and what regional challenges it faces. Interview by Justin McCurry.

Opinion Leader 40 Takatoshi Ito, Professor, Graduate School of Economics and Graduate School of Public Policy, University of Tokyo, on Japan as a financial center. 東京大学大学院経済学研究科・東京大学公共政策大学院教授の伊藤隆敏氏が金融センターとしての

日本を語る。

Classic Journeys 56 Tony McNicol

Escaping the summer heat on Mt. Takao. By Tony McNicol

Science, Technology and Inventions 62 56

A wearable computer interface with hands-free controls for mobile phone, music player, game machine and other portable appliances. By Robert Cameron

FDI Portfolio 63 Commercial real estate program. Culture coach. Cosmetic surgery consultant. History preservation. LV’s biggest store. Diesel flagship. By Nicole Fall

Business Profile 66 Interview with possibly the ACCJ’s longest-serving member, David Wouters, a 39-year veteran of the Chamber. By Julian Ryall

Museum Musings 68 Visitors to Kobe’s Disaster Reduction Museum experience earthquake re-enactment and see a section of the city immediately after the tremor, recovered items, and dioramas of reconstruction work. By Julian Ryall

Behind the Book — 60-year Special 69 Chronicles of My Life: An American in the Heart of Japan by Donald Keene. Story of a foreigner’s life here since 1948 is reviewed by Tom Baker. ACCJ

In the Final Analysis 70 66

4 / ACCJ Journal / August 2008

By Samuel H. Kidder, ACCJ Executive Director

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ACCJ Leaders President Allan D. Smith AIG Companies, Japan and Korea Chairman Charles D. Lake II Aflac Japan Vice Presidents Michael J. Alfant Fusion Systems Japan Co., Ltd. Laurence W. Bates General Electric Japan, Ltd. William R. Bishop, Jr. Bishop & Associates Michael D. Bobrove (Kansai) Nihon Medrad K.K. Kumi Sato Cosmo Public Relations Corporation Mark F. Schwab United Airlines, Inc. Michael D. Weenick (Chubu) PAE Design & Facility Management Treasurer Nasir Majid PricewaterhouseCoopers Brett Jensen (Kansai) Colliers Hallifax Steve Burson (Chubu) H&R Consultants

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ACCJ Governors Vicki L. Beyer Morgan Stanley Japan Securities Co., Ltd. Ravi Chaturvedi (Kansai) Proctor & Gamble Japan K.K. Charles M. Duncan Continental Airlines Christopher K. Ellis Chrysler Japan Company, Ltd. James Foster Microsoft Japan Harry Hill (Chubu) Oak Lawn Marketing, Inc. Tad Johnson Pratt & Whitney Aftermarket Japan KK John Kakinuki GE Consumer Finance Co., Ltd. Jiri Mestecky Kitahama Partners L.P.C. Sharon Baker Morin State Street Trust and Banking Co., Ltd. Douglas L. Peterson Citigroup Japan Nicole W. Piasecki Boeing Japan Jay Ponazecki Morrison & Forester LLP Jim Weisser Weisser Consulting Ira Wolf Pharmaceutical Research and Manufacturers of America (PhRMA) ACCJ Executive Staff Samuel H. Kidder Executive Director Aron Kremer Deputy Executive Director ACCJ Committees American Auto Industry Randy Krieger Architecture, Construction & Real Estate Kevyn Johnson/Michael P. King Asia Business Philip C. Jones B2B Sales Karl Hahne Banking and Finance Thomas Clark/Ernfred Olsen Capital Markets Douglas Hymas Charity Ball Barbara Hancock Competition Policy Task Force Robert Grondine Corporate Social Responsibility Patricia Bader-Johnston Direct Marketing Joseph Peters Environmental Vincenzo Lufino Financial Services Forum Charles D. Lake II Food and Agriculture Collin Benson Foreign Direct Investment Nicholas Benes Government Relations Andrew Conrad Healthcare Steve Plunkett Human Resource Management Chris Lamatsch/Ken Somers Independent Business Rochelle Kopp Information, Communications & Technology Darren McKellin Insurance Jonathan Malamud/Grant Tanabe Intellectual Property David Case International Education Patricia O’Keefe Investment Management David Monroe Legal Services Eric Sedlak Corporate Counsel Clair Chino Marketing Programs Dominic Carter Membership Relations Andrew Silberman Privatization Task Force David Hoover Retail Victor Luis Special Events Barry Bergmann Young Professionals Group John Ghanotakis/Daniel Lintz Taxation Jack Bird/Michael Shikuma Toiletries, Cosmetics & Fragrances Yukiko Tsujimoto Transportation and Logistics Jeff Bernier/Mitsuyo Teramura Business Aviation Task Force Gary Konop Travel Industry Vincent You University Briefing Program Richard May/David Satterwhite Kansai Chapter Business Programs Jiri Mestecky Community Service Kojiro Dan External Affairs Kiran Sethi Living in Kansai Barry Louie Membership Douglas Schafer Women in Business Mari Nogami Chubu Chapter Community Service Steve Burson Independent Business Jeremy Cowx/Jason Morgan Living in Chubu Lowell Sheppard Membership Relations Chris Zarodkiewicz Programs Steve Brown

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American Chamber of Commerce in Japan Masonic 39 MT Bldg. 10F, 2-4-5 Azabudai Minato-ku, Tokyo, Japan 106-0041 Tel: 03-3433-5381 Fax: 03-3433-8454 www.accj.or.jp / www.ecentral.jp

Publisher Vickie Paradise Green paradise@paradigm.co.jp Editor-in-Chief Simon Farrell simonfarrell@paradigm.co.jp Senior Editor David Umeda Art Director Paddy O’Connor Graphic Designers Karen Jacobi, Mayumi Ohara COLUMNISTS Tom Baker, Robert Cameron, Nicole Fall, Mark Schreiber CONTRIBUTORS Vicki L. Beyer, Alana R. Bonzi, Jeroen Booij, Geoff Botting, Martin Foster, John R. Harris, Catherine Makino, Justin McCurry, Jiri Mestecky, Darren McKellin, Tony McNicol, Anthony H. Rowley, Julian Ryall, Catherine Shaw, Richard Smith, Aki Tanaka, Jeffrey Tanenhaus PHOTOGRAPHERS / ILLUSTRATORS Jeremy Sutton-Hibbert, Darren Thompson Published by Paradigm President Vickie Paradise Green Creative Director Richard Grehan Advertising Sales Eileen Chang, Melissa Daines, Sarit Huys, Leai Kubotsuka Kamiyama Ambassador 209 18-6 Kamiyama-cho, Shibuya-ku Tokyo, Japan 150-0047 Tel: 03-5478-7941 Fax: 03-5478-7942 e-mail: inquiries@paradigm.co.jp www.paradigm.co.jp

Published monthly in Tokyo, on the 25th of the month, since 1964. Indexed in the PAIS BULLETIN. All rights reserved. The views and opinions expressed herein (other than editorials from the ACCJ itself) are solely the opinions and views of their authors. The ACCJ is not responsible or liable for any portions thereof. Subscription rates for non-ACCJ members One year ¥9,000; two years ¥15,000; three years ¥22,000. ¥800 per copy. Rates include domestic postage or surface postage for overseas subscribers. Add ¥7,500 per year if overseas airmail is preferred. Please allow eight weeks for changes of address to take effect. Subscription requests should be sent to info@accj.or.jp The ACCJ Journal welcomes story ideas from readers and proposals from writers. Letters to the editor may be edited for length and style. The ACCJ Journal is produced entirely on Apple computers

Note from the Editor

Here’s to the Next 60 …

ll anniversaries are special, but in Japan 60 years is a major celebration of the past—and a new beginning—with its own name, kanreki. We had a lot of fun putting together this special 60th Anniversary issue. A number of former presidents and executive directors were delighted to contribute nostalgia, anecdotes and opinions in our cover story, and update us on their post-ACCJ lives. The accompanying timeline shows how the U.S. and Japan have survived hard times and thrived in good — while preserving that very special relationship between the world’s two biggest economies, despite testing times. In fact, many people agree, Japan-U.S. ties have never been stronger. Along with number-crunching snapshots of costs and other data from 1948 to the present, you’ll see inside how the fortunes of both countries have steadily improved as business, cultural and political cooperation and understanding deepened. Digging deep into dusty archives also revealed what we believe is our longest-serving member. So we made this 39-year ACCJ veteran our Business Profile, on page 66. Chronicles of My Life: An American in the Heart of Japan by Donald Keene is a fascinating account of a foreigner’s life here since 1948, and so a fitting book review in this anniversary issue, on page 69. As usual, we have three copies to give away. I’d like to congratulate the leaders, membership,

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management and staff of the ACCJ — past and present — on their great achievements. What is truly remarkable, for me, about the ACCJ is that Committee chairs and other members, along with the elected presidents, vice presidents and governors, selflessly volunteer for the good of all. CSR, for example, has become practically de rigueur (next month you can read which NGos will benefit from the millions in yen this year’s Charity Ball is expected to raise). Nonetheless, advocacy is, arguably, where the ACCJ has registered its biggest successes. With the organization’s full agenda, the Journal will continue to offer a platform to help level the playing field in Japan. Unlike the original 40 members in 1948, many ACCJ members today are SMEs and entrepreneurs. President Allan Smith has made 2008 a year to promote their cause. And the Journal will aim to reflect them and all member companies in their pursuit to make the ACCJ become even bigger and better. Happy 60th Birthday, ACCJ!

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By Allan D. Smith / President’s Message

Kanreki: celebrating the past, shaping the future

he American Chamber of Commerce in Japan held its first official meeting on August 24, 1948, a little over three years after the Emperor Showa’s radio broadcast on August 15, 1945 that marked the beginning of the end of WWII. The U.S. occupation of Japan continued until April 28, 1952. General MacArthur and his General Headquarters conducted extensive land reform and democratization, and envisioned an agrarian Japan without a significant industrial base that could again cause trouble. The Japanese bureaucracy, on the other hand, was planning an industrial revival but was not sure whether that would be in the context of a capitalist or a socialist system. Looking back, the extent to which these two visions were fulfilled and not fulfilled is interesting. Clearly, they left their mark on Japanese politics, its base in the countryside, and on Japan’s mix of free enterprise for export industries and lingering government control and protection for domestic ones. The ACCJ’s 60th Anniversary theme is Kanreki, the Japanese term for the new beginning one experiences aged 60. Kanreki looks to the future as well as the past. Just like 60 years ago, the planners now try to shape the

future, but what will actually develop will likely be a mix of the foreseen and unforeseen. Considering the recent G8 Summit in Toyako, the big issues that face Japan and the U.S. are how to work together to integrate nations such as China, India and Russia into the world trading economy, environmental issues that transcend borders, and further trade liberalization centering on the reduction and elimination of agricultural subsidies. The ACCJ also looks to the future and how it can shape events. We believe the best way to address issues, such as integrating economies and environmental and agricultural concerns, is through a bilateral Economic Integration Agreement. This would set the model for free trade and become the basis for integrating other economies throughout the region on the same terms. The U.S. and Japan would set the standard for other countries to meet and be a powerful force for change. Additionally, the ACCJ recently has fielded a number of inquiries about Japan’s openness to Foreign Direct Investment, and I have been asked to give a number of interviews representing the ACCJ on this topic. I also was asked to serve on the Cabinet office’s Expert

ACCJ Mission Further the development of commerce between the United States of America and Japan, promote the interests of U.S. companies and members, and improve the international business environment in Japan.

Committee on FDI Promotion under the direction of Minister of State for Economic and Fiscal Policy Hiroko ota. The Committee issued its report on May 20, which is in English at www.investment-japan.go.jp/ Former Prime Minister Junichiro Koizumi committed in 2003 to double FDI in Japan by 2008 — a goal that is nearly achieved — and Prime Minister Yasuo Fukuda has pledged to double FDI again, by 2010. Through its Committees, the ACCJ is working to make positive suggestions on how that can be achieved and is working closely with the U.S. and Japanese governments to make our voice heard.

asmith@accj.or.jp Allan D. Smith is ACCJ President.

August 2008 / ACCJ Journal / 13

ACCJ Anniversary Special 60 years of business in Japan.

rom a humble 40 members in 1948, the ACCJ has grown into an influential organization that is more than 3,000-strong. It has ridden Japan’s booms and survived the busts, but continues from strength to strength. Join us as we look back at history and invite former presidents and executive directors to mark the ACCJ’s 60th Anniversary. Edwin W. Beeby President (1974) When I gave my inaugural speech at the Hilton Hotel in 1974, the Japan-U.S. trade balance was $4 billion in Japan’s favor. I predicted that the Japanese economy would be like a train going down a hill — nobody knew how far it was going to go or how

14 / ACCJ Journal / August 2008

to stop it — and then the situation began to change. Events after that began to reveal the intransigent nature of our two economies. The U.S. needed a way to catch up. My term was marked with visits by companies searching for a role in this great market. There were two areas that Japan did not dominate yet: nuclear and defense. My company, Westinghouse Electric, was a leader in both. The then-Ministry of International Trade and Industry became a common term in board meetings in the U.S. Visiting dignitaries descended upon Japan seeking new friends and joint ventures to secure their share of the future. Extravagant parties were held at the Imperial, Okura and Hilton hotels, and Japanese teahouses, like Han-ya-en. The

ACCJ became very busy. Happy Mayger was working night and day keeping everyone supplied with his great photos. Bart Jackson and the staff kept us all organized. The ACCJ was a small outfit compared with the organization that operates today. A Washington Doorknock was a major event for us — a chance to rub elbows with “bigwigs,” something we had not done before. Contacts from these meetings proved to be very helpful in bringing the major problems and obstacles in our work in Japan to the attention of the right people. The National Chamber was very supportive in these efforts. I was very fortunate in being able to extend my tenure in Japan beyond the initial years of my posting, eventually totaling

By Julian Ryall / ACCJ Anniversary Special

As Ambassador Mike Mansfield was fond of saying, “Japan is the number one ally of the United States.” It still is.

ASAHI PHoTo SERVICE

more than 20 years in the country, beginning by living in a small apartment in the Imperial Hotel and finally in a beautiful Homat apartment in Roppongi. My family and I are true Japanophiles and still have many ties to friends in Tokyo. We wouldn’t have exchanged this experience for anything. The future is not rosy for Japan, nor is it for the U.S. With changes happening daily in all countries at this time, it is not easy to predict the future. “Maynard” M. Barney Williamson President (July 1976 – Dec. 1977) It is fascinating to read the issues demanding the attention of the Chamber today. While e-mail has replaced the fax, the time change is still the same. The technical revolution has merely made those midnight wakeup calls easier for the home office. As Ambassador Mike Mansfield was fond of saying, “Japan is the number one ally of the United States.” It still is. A breakfast

Joseph M. Dodge, a Detroit banker sent by President Harry S. Truman, explains new economic policies to Tokyo reporters in March 1949.

meeting for Jimmy Carter, who aspired to be president, was a typical event. Today, Democratic Presidential nominee Barack obama has a Japanese island with the same name! Then, as now, Americans were expressing concern over the purchase of their vital assets by foreign investors. Rates of exchange and corporate responsibility were debated. The ACCJ Doorknock was an important feature of the Chamber’s activities. Direct contact with U.S. Commerce Secretary Juanita Kreps and her expanding trade negotiating

teams was vital. More significantly, globalization had already taken hold. During 1976-77, the Chamber took an active role in APCAC (Asia-Pacific Council of American Chambers of Commerce). Even the U.S. Embassy residence decided to change its driveway so that traffic followed Japanese standards! With us as host, the Joint Economic Committee of Congress, under Lloyd Benson, actually convened meetings in our region. The ACCJ participated in a meeting with Vice President Walter Mondale

1948

1949

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1956

The 40 original members of the American Chamber of Commerce in Japan elect President Dennis McAvoy of Reader’s Digest and a Board of Governors at the first official meeting, on August 24, at the Tokyo American Club

North Atlantic Treaty Organization formed U

ACCJ by-laws and distinctive logo introduced

ACCJ publishes its first cost-ofliving survey

•

U.S. Secretary of State John Foster Dulles creates a peace treaty with Japan, waiving the rights to compensation of every prisoner of Japan during WWII. • President Harry S. Truman grants amnesty to Japanese war criminals not then imprisoned

Japan and U.S. sign Treaty of Friendship, Commerce and Navigation

TTK (later Sony) introduces the world’s first transistor radio

Liberal Democratic Party founded

•

1957

First Japanese International car sold in the Atomic Energy U.S. Agency formed • Douglas MacArthur appointed U.S. Ambassador • Japan joins the United Nations

August 2008 / ACCJ Journal / 15

A single-minded push for more exports will not work in today’s world. Japan will need to find a more cooperative approach.

and Speaker of the House Tom Foley in China. There is much to be done and it is encouraging to see how, over the years, the Chamber has expanded to continue to be the most important public-private influence between our two nations. Congratulations, and keep up the good work. Joseph A. Grimes, Jr. President (Sep. 1986 – May 1988) I arrived in Tokyo in 1979, the year of the second oil crisis. oil prices were surging, just as they had surged a couple of years before. Japan, not surprisingly, geared up its export machine to be ready for the next increase. It didn’t happen then, but here we are today, almost 30 years later, with another oil crisis that will have a significant economic impact on Japan. A single-minded push for more exports will not work in today’s world. Japan will need to find a more cooperative approach. When I arrived, the economy was tightly regulated, either

by law or “consensus.” Rules were relaxed after the Plaza Agreement of 1985. Direct investment increased and ACCJ member companies had more non-Americans in top management positions. one result was a change in the by-laws in 1987 to permit non-Americans to serve on the ACCJ Board of Governors. Academic thinking at the time agreed that Japan had put it all together to create an ideal economic machine. Government, business and labor were working together harmoniously. Ezra Vogel wrote a best-seller, Japan as Number 1. Almost everyone believed in Japanese management superiority. Even after the Bubble burst, Chalmers Johnson wrote in 1991 that the “Cold War is over and Japan has won.” Since Japan was slow to react proactively to the bursting of the Bubble, it is still struggling to recover. Japan will come back, but it will never be No. 1, even in Asia. It will, however, continue to be an important role model for other countries if it continues to move in the direction of greater transparency. I am no longer working on

1958

1959

1960

1961

1962

Japanese Chamber of Commerce visits New York to seek 10% rise in exports to the U.S.

Crown Prince Akihito marries a commoner, Michiko Shoda

Zengakuren (All-Japan Federation of Students’ Self-Governing Associations) forces cancellation of President Dwight Eisenhower’s visit to Japan

Ambassador Douglas MacArthur’s farewell speech, “The Evolution of the JapaneseAmerican Partnership”

President Most-favorednation provision John F. Kennedy adopted in U.S.- assassinated Japan consular U convention

16 / ACCJ Journal / August 2008

William E. Franklin President (May 1988 – Dec. 1990) Forget the sentimental notion that foreign policy is a struggle between virtue and vice, with virtue bound to win. Forget the utopian notion that a brave new world without power politics will follow the unconditional surrender of wicked nations. Forget the crusading notion that any nation, however virtuous and powerful, can have the mission to make the world over in its own image. Remember that diplomacy without power is feeble, and

1964

1965

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1967

Tokyo admits U.S. nuclear-driven warships • Games of the XVIII (Summer) Olympiad held in Tokyo • ACCJ Journal launched in March with 29 black-andwhite pages

Agreement reached to establish Asian Development Bank

Joint U.S.-Japan Committee meets on trade and economic affairs

Japan calls for Vietnam peace

•

1963

Japan-related issues, but I am a member of a small group at the Council of Foreign Relations that is interested in more CFR focus on Asia. With the rise of China and India, that should be an increasingly easy sell. I also am on the board of Enterprise Works/ VITA, an NGo that promotes for-profit businesses in the developing world.

ACCJ Anniversary Special

U.S. Chamber leaders learned early on about the importance of respecting the power and influence of others …

ToKYo METRoPoLITAN GoVERNMENT

Tokyo population (in millions) 15 12

11.4

11.7

11.9

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1980

1990

12.1

12.8

10.2

9 6 3.5

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1962

2000 2007

power without diplomacy is destructive and blind. Remember that no nation’s power is without limits, and hence that its policies must respect the power and interests of others. (From the book In Defense of the National Interest, 1951, by Hans Joaquim Morgenthau). Do Prof. Morgenthau’s words have relevance for us in 2008? Sometimes we Americans believe that as other countries develop and become economically successful they will want to adopt all our values and systems to become just like us. Not likely. When we think that our ideals and our institutions are the one best way for all cultures, we automatically forgo the possibility of learning that other systems may have equal validity.

The ACCJ Journal’s 50th Anniversary issue in August 1998

Teilhard de Chardin, one of the early Jesuits in China, observed, “The Chinese are instinctively hostile to foreigners who propose changes for which they see no need.” U.S. Chamber leaders learned early on about the importance of respecting the power and influence of others, that everyone does not want to be just like us and that most of us resist change for which we see no need. If the U. S. is a market economy, then Japan might be called a network system. We learned, some of us the hard way, that

1968

1969

1970

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1972

Agreement reached on returning Bonin (Ogasawara) Islands to Japan

Lower House protests U.S. textile import restrictions

Renewal of the JapanU.S. Security Treaty

Japan agrees XI Olympic Winter to three-year Games held in Sapporo deal to limit U textile exports to the U.S.

unless we established the right relationships, created “internal allies” and win-win solutions, most of our “breakthrough” trade and investment agreements would not produce breakthrough results. (And how many of us have learned so much from our Japanese partners about how to improve our quality?) on the ACCJ’s 40th anniversary, we honored Mike Mansfield. He said, “The American Chamber of Commerce in Japan is the best American chamber in the world.” I believe that to be true. J.W. “Bill” Beagles President (1996–97) It is a pleasure to offer a few remarks about one of the most enjoyable chapters in my life and that of my family. We were tapped by the Boeing Company to relocate to Japan in 1986, to “sell” AWACS to the Japan Air SelfDefense Forces (JASDF). I learned a new meaning for the word “patience.” The sales cycle for this multi-billion dollar program took more than 12 years. Two

1973

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1976

1977

Japan switches yen to floating exchange rate system

Price of oil quadruples to nearly $12 per barrel in three months as OPEC cuts supplies to punish the U.S., Japan and Western Europe for being pro-Israel; U.S. pump prices reach 55 cents

Emperor Hirohito makes his first state visit to continental U.S.

U.S. Senate Michael Mansfield appointed U.S. holds Ambassador U hearings on the Lockheed scandal

August 2008 / ACCJ Journal / 17

MINISTRY oF INTERNAL AFFAIRS AND CoMMUNICATIoNS

The early 1992 visit of President George H.W. Bush and 20 leading CEos from the U.S. had been hyped in the Japanese press as the salesman president and his entourage. Consumer Price Index (excluding rent) 120

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highlights of my Boeing experience in Japan were the signing of the AWACS contract and delivery of the 100th Boeing 747 to Japan Airlines, both in 1998. Early on, it was my good fortune to have become a member of the ACCJ. Subsequently, I was elected to the ACCJ Board and during this time it was a privilege to become acquainted with Ambassadors Mike Mansfield, Michael Armacost, Walter Mondale and Tom Foley. Each played a supportive role in the AWACS sale. During the two years of my ACCJ presidency much change took place in both the ACCJ and in Japan, especially with ongoing deregulation and major currency fluctuations. During this time, the annual Washington Doorknock

was extended with great success to the Diet in an effort to lobby Japanese politicians. one accomplishment during my watch as president, of which I am especially proud, was the formation of the ACCJ Community Service Fund. Under the nurturing and direction of Tom Whitson, this fund was established as an outgrowth of the ACCJ’s response to the Great Hanshin Earthquake of 1995. It has long been a passion of mine to encourage “volunteerism” as a means to foster organization momentum and company pride. Since our retirement and repatriation to Seattle in 1999, I have been enjoying the fruits of 32 years with Boeing by spending time with my family. We have just welcomed our 8th grandchild. Linda and I are enjoying our travels around the world, and seeking out the nooks and crannies of America. We have both spent time at our hometowns to be in touch with our roots. We are thankful for being Americans; I am confident that if we continue to renew and develop close personal relationships with

our Japanese counterparts, the most important bilateral relationship on Earth will flourish far into the future. We currently live in Ahwatukee (Phoenix), Arizona. William R. Farrell Executive Director (1990 – 95) In May of 1990, when I arrived to serve as executive director, the Japanese economy was at the zenith of the Bubble, while the U.S. economy was struggling. Clyde Prestowitz’s book, Trading Places, was on the best-sellers’ list, alongside Akio Morita and Shintaro Ishihara’s A Japan That Can Say No. Whether it was the auto industry, insurance, glass, supercomputers, construction, beef, rice, semiconductors, mobile phones or a host of others, there were a lot of heated issues confronting American businesses. It was also the era of trade strategies focusing on quotas, limits, market access and the ominous sounding “301” and “Super 301” trade legislation. In March 1991,

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Japan agrees to reduce trade surplus with the U.S. • The Tokyo International Airport at Narita opens U

U.S., Japan liberalize telecommunications equipment market

U.S., Japan cooperate on science and technology

Japan restrains automobile exports to the U.S.

President Ronald Reagan visits Japan Tariffs, quotas and restrictions discussed at 2nd round of Tokyo trade talks to open markets for U.S. goods

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U.S., Japan agree on agricultural imports

Japan further opens domestic market to imports

Japan joins in the Strategic Defense Initiative program

The U.S. restricts Japanese imports

ACCJ Anniversary Special

Through economic upturns and downturns, the ACCJ has showed itself to be a vibrant and vital organization.

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1948 U.S. prices: ■ House: $14,500 ■ Average income: $3,216 ■ Ford car: $1,339-2,262 ■ Milk: $.82 ■ Gas: $.20 ■ Bread $.14 ■ Postage stamp: $.03 ■ Pumpkins: $.02 cents a lb ■ Campbell’s Pork & Beans, 1 lb. cans: $.25 ■ Sirloin steak: $.77 lb ■ Admiral “home entertainment” TV system: $549.50 ■ 12” records: $4.85 ■ 10” records: $2.85

The Coming War with Japan, by G. Friedman and M. Lebard, hit bookstores. The mood between the two nations was not the best. The early 1992 visit of President George H.W. Bush and 20 leading CEos from the U.S. had been hyped in the Japanese press as the salesman president and his entourage. The president’s illness and passing out into the lap of then Japanese Prime Minister Kiichi Miyazawa did not help bolster America’s image. However, by this time, the speculation-driven Japanese Bubble had popped and the effects were beginning to hit home. It was

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Japan liberalizes President George beef and orange H.W. Bush attends funeral markets U of Emperor Hirohito

not only Japanese companies that felt the impact, but ACCJ member companies had to cut costs and personnel. Since much of the Chamber’s revenue came from dues, the office hired its first professional staff to work with the Membership Committee to augment efforts to maintain and grow the organization. In 1993, President Bill Clinton visited Japan and accepted an invitation for himself and senior advisors to participate in a Trade and Investment Forum hosted by the ACCJ. The event drew a lot of attention and international media coverage. By the end of that year, membership had grown to 2,300. Not only was Japan facing economic difficulties, but in 1994 the political situation was not much better. There were a series of prime ministers and much uncertainty. The ACCJ determined to get more proactive and that it was time to replicate the Washington Doorknock process in Tokyo. The Chamber initiated the Diet Doorknock, a critical effort that continues today. 1995 saw no letup in the troubles confronting Japan. A tragic earthquake struck, killing

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The Nikkei 225 index loses nearly 40% in value, as the Bubble economy starts to deflate

President George H.W. The U.S. commemorates Bush and 20 top CEOs 50th anniversary visit Japan U of the attack on Pearl Harbor

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thousands. The Kobe area was particularly hard hit. ACCJ corporations and their staff in the area suffered as well. Member companies provided donations and volunteers to help the stricken area get back on its feet. Through hard work by staff and volunteers, membership grew to over 2,500 by the end of the year. Through economic upturns and downturns, the ACCJ has showed itself to be a vibrant and vital organization … Mr. Farrell currently serves as the Chairman, National Association of Japan America Societies (NAJAS), a network of 40 independent Japan-related organizations in the U.S. and Canada. He is also an adjunct professor at the Naval War College, Newport, Rhode Island.

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Japan partially opens its rice market

Emperor Akihito visits the U.S.

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Earthquake hits central Japan, killing thousands and causing widespread damage especially in Kobe • Aum Shinrikyo sect releases deadly nerve gas in Tokyo, killing 12 and injuring thousands

U.S. and Japan agree to substantially reduce U.S. forces in Okinawa

Asian Economic Crisis starts

Japan announces a $195 billion economic stimulus plan

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August 2008 / ACCJ Journal / 19

ACCJ Anniversary Special

In desperation, Japan opened up to significant capital liberalization and FDI — causing angst among many in the corridors of power.

Donald B. Westmore Executive Director (1998–2006) When I arrived as ACCJ executive director in July 1998, Japan had reached a critical, historic juncture. The vaunted Japanese economic juggernaut had foundered on the shoals of a fragile financial system. In desperation, Japan opened up to significant capital liberalization and FDI — causing angst among many in the corridors of power. Some even warned that Japan might lose its unique identity! But hungry for change, Japanese voters turned to a maverick member of the Liberal Democratic Wholesale Price Index 120

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Party, Junichiro Koizumi, who pledged fundamental reform under the slogan, “No sanctuaries for special interests.” Koizumi enjoyed unprecedented popularity and became the first prime minister in nearly 20 years to be elected three times. The ACCJ had long been pushing regulatory reform, and under Presidents Glen Fukushima, Bob Grondine, Don Kanak, Lance Lee, Debbie Howard and Charles Lake, we became even more visible. We hired a media officer, moved into a handsome new office and established a chapter in Nagoya. As FDI rapidly expanded and thousands of Japanese came to work for foreign companies, ACCJ committees proliferated, increased information programs and published Viewpoint papers on virtually every economic issue. Reflecting this maturation of our role in Japan, in 2001 the ACCJ’s u.S.-Japan Trade White Paper morphed into the u.S.-Japan Business White Paper. I am enormously proud and grateful to have played a small part in this history. From my retired

U.S. Ambassador James D. Hodgson and James Adachi at an ACCJ briefing in 1976.

vantage point looking out on the Hudson River and the Catskills, those eight years seem to me to hold epical significance for Japan. The ACCJ stepped up to the plate in the best American tradition of volunteerism. Today, it is an important player in the Japanese policy process, recognized as working for the benefit not only of foreign businesses, but of everyone living and working in Japan.

Julian Ryall is the Daily Telegraph’s Tokyo correspondent.

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The U.S., Japan and South Korea warn North Korea not to carry out further ballistic missile launches

G8 Summit meeting in Okinawa U

Anti-terrorism Special Measures Law authorizes Self-Defense Forces to provide “rear area” support

Prime Minister Junichiro Koizumi visits the U.S. on the first anniversary of the 9/11 terrorist attacks

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Japan bans U.S. beef imports after BSE scare • The Kyoto Protocol to the UN Framework Convention on Global Climate Change is adopted • Japan enjoys second of two straight years of economic growth, for first time since 1990

SelfDefense Forces dispatched to Iraq

J. Thomas Schieffer appointed U.S. Ambassador

Japan re-imposes U.S. beef import ban due to discovery of BSE risk material in a U.S. beef shipment

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Nikkei hits lowest level since 2001 U.S. House passes the “Comfort Women” resolution • Toyota overtakes General Motors as world’s largest car manufacturer

Toyako, Hokkaido, hosts G8 Summit, focusing on environment and climate change, development and Africa, the world economy, and political issues including nonproliferation

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August 2008 / ACCJ Journal / 21

By J. Thomas Schieffer / 60th Anniversary

U.S. Ambassador Congratulates the ACCJ on 60th Anniversary

n behalf of the U.S. Mission goods and services with Japan in in Japan I wish to congratthe face of high tariffs and proteculate the members of the tionist policy. The ACCJ also served American Chamber of Commerce a lesser-known role as a voice of in Japan for truly “bringing busimoderation to policymakers on nesses together for sixty years.” both sides during episodes of trade The relationship between the friction between our two countries. United States and Japan has By the end of the century, it evolved dramatically throughout was clear that a wealthy Japan the postwar period, and the ACCJ needed to address new economic has been at the forefront of much challenges. In 1997, the Ministry of that change. As you begin a of Finance published an unprecnew 60-year cycle, it is fitting that edented report that fundamenwe reflect on the past accomplishtally changed Japan’s economic ments of the ACCJ, as an indicagoals. In part, it read: “The tion of how much more can be major challenge for Japan in accomplished in the years ahead. the 21st century is to maintain In its early days, the ACCJ was its economic vitality against the active in urging the parent comparapid aging of the population nies of its members to import … [and] the rapid progress of from Japan, contributing to the globalization and innovation in growth of the local economy. The the information and communicaChamber’s philanthropic activities tion technologies. To meet this included an Olympic fund to raise end, it is necessary for Japan to money for Japan’s participation undertake a structural reform of in the Melbourne Olympics and its social and economic system.” donations of rice to feed 166,000 Just as a democracy needs to people after Hokkaido’s disastrous afford citizens a transparent harvest of 1956. Throughout the process for access to informa1950s and 1960s the “Japanese tion, market-based systems must miracle” was achieved as Japanese provide consumers and investors manufacturers adapted the access to reliable information Deming and Juran methods to to make informed decisions on fit their own environment and how to spend and invest their Japanese policy-supported busimoney. Although much remains ness to create an export-driven to be done with structural reform, economy. Throughout that period, transparency has clearly improved and into the 1970s and 1980s, the in a number of areas. The ACCJ ACCJ assisted U.S. companies in has made a positive impact in the gaining market access to trade structural reform process. ACCJ

member companies are now an integral part of the Japanese system, with a wealth of experience to share to make Japan a better place for all those who live and work here. Accordingly, ACCJ recommendations now encompass the full spectrum of economic policy, including taxes, labor laws, standards, healthcare, financialmarket regulations and education. The ACCJ’s stated mission has been to further the development of commerce between the U.S. and Japan, promote the interests of the U.S. companies and members, and improve the international business environment in Japan. In all of these areas I believe you have succeeded enormously. We in the U.S. government support your continued efforts to create a business climate that fosters sustained and stable economic growth and innovation in Japan. We encourage the ACCJ to continue to share its experiences in issues such as Corporate Social Responsibility and take a leading role in community service activities. We look forward to working with you throughout the next 60 years, as we further our commitment to a strong and lasting U.S.-Japan relationship.

J. Thomas Schieffer Ambassador United States of America

August 2008 / ACCJ Journal / 23

By Mark Schreiber / Media Watch

Minicar Revolution With gasoline prices soaring, carmakers are working frantically to introduce new, fuel-saving technologies. The business weekly Toyo Keizai devotes its May 24 cover story to the “revolution” now sweeping the automobile industry. Toyota Motor Corporation’s super compact iQ (pictured), billed as the world’s smallest four-seat passenger car, was initially unveiled as a concept car at the Frankfurt Motor Show in 2007. It is expected to be launched later this year with a choice of gasoline or diesel engines; and while much praise has been devoted to its remarkably roomy design, the real issue for drivers will be, of course, fuel economy. (Performance figures were pending as of this writing.) The world, Toyo Keizai asserts, has its eyes on Japan’s kei-jidosha (minicars), which, for now, might very well be the closest thing that comes to the ideal eco car. (For tax purposes, minicars are categorized as having a body length of less than 3.4m and engine displacement under 660cc.) According to the Japan Automobile Manufacturers’ Association (JAMA), minicar sales in 2007 accounted for 1.42 million units, or about one-third of the 4.39 million vehicles sold. Yet, exports in this category were negligible — an unbelievably low 1,604 units last year. one of the reasons for the lack of foreign customers is that minicars’ sticker price is only slightly less than for the next-larger category of subcompacts, such as Toyota’s 1.3-liter class Vitz. Also, the smaller cars’ power uphill is said to be wanting; and, for this reason, Daihatsu Motor Co., Ltd. exports its Mira mini-sedans to Pakistan in a souped-up 1-liter version. Nonetheless, Japanese manufacturers’ expertise in this field, Toyo Keizai reports, holds great promise in terms of ecology-friendly vehicles of the future. one such example is Mitsubishi Motors Corporation’s iMiEV (pronounced “eye-meeve”), an electric car

based on the automaker’s “i” minicar platform, due to be launched domestically with a 2009 year model. MMC’s European distributors are also said to be eagerly awaiting the iMiEV. The breakthrough came in the form of a high-performance Lithium-ion battery that gives the MMC car longer cruising range without additional weight. Storage-battery development match-ups — Toyota-Panasonic, Nissan-NEC and Volkswagen-Sanyo — should lead to a leap in the number of such vehicles on the road. The shift to batteries will have wider implications. “If more large-capacity Lithium batteries come into use, we foresee their being adopted in a variety of applications, such as storage for solar generators,” Mitsubishi Corporation’s Hiroshi Imakawa is quoted as saying. Fuji Heavy Industries Ltd., which produces Subaru, is pursuing a similar strategy of developing an electric vehicle based on its minicar platform, with very few modifications, thereby joining the race to develop an eco-car by harnessing a strategy far more practical than developing an entirely new model from scratch. A resurgence of RR (rear engine, rear drive) designs — harking back to the days of the old Volkswagen Beetle — may also be in the offing, notes Toyo Keizai. The magazine also points out that motorcycle manufacturing — where Honda Motor Co., Ltd. and Suzuki Motor Corporation have their origins — has had a crucial influence on compact car designs through achievements in a number of areas, including architecture (chassis design), electronic fuel injection, engines, shock absorbers, brake systems and production methods. “Two-wheelers are seasonal products, with smalllot, carefully timed production,” an engineer points out. “The ideas applied to this kind of focused demand are also reflected by automakers.”

August 2008 / ACCJ Journal / 25

Citrulline Boom? Ever heard of citrulline? It’s an alpha-amino acid that Japanese scientists first extracted from watermelon juice back in 1930. Its name is derived from citrullus vulgaris, the Latin word for watermelon. This summer, the Nikkei Marketing Journal (May 14) predicts we may see a boom in products incorporating citrulline, which only gained Ministry of Health, Labour and Welfare recognition in August 2007. The substance boasts antioxidant properties, and is also said to reduce muscle fatigue.

In April, Asahi Soft Drinks Co., Ltd., Lotte Co., Ltd. and Shiseido Co., Ltd. announced they would collaborate in a Citrulline Health Project, pushing beverages, gum and other products containing the substance. The respective marketing targets will be males in their late twenties for Asahi Soft Drinks, working women for Shiseido, and people engaging in sports for Lotte. These new products follow on the heels of the citrulline supplement tablets launched by Kyowa Hakko Kogyo Co., Ltd. in 2007. During the month of May, a

laboratory established to promote the substance sponsored a special Citrulline Suika Café in Shinjuku. “It’s hard for a single company to achieve consumer recognition,” says a marketing manager at Asahi Soft Drinks, explaining his firm’s strategic tie-up with Lotte.

Low Riders While riding on the JR Yamanote loop line, Miya Matsumoto, a 31-year-old section head at R-Live, a worker dispatch service based in Tokyo’s Shibuya Ward, was shocked to see a female subordinate, stereo headphones plugged into her ears, sound asleep on the train. At that time, the employee should have been making a sales call to a client in Ebisu. “If you’re going to oversee people, pay a visit to a manga coffee shop,” advised Matsumoto’s boss. She did, and found it full of young men in business suits, poring over comic books. Twenty years into the law requiring gender equality, reports Aera (June 9), the emerging class of female managers is discovering, to their dismay, that motivating subordinates is no easy task. “Did you send the client an e-mail, thanking them for meeting you yesterday?” Matsumoto queried one staff member. “Is it necessary?” came the reply.

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“I lost my cool,” she relates. “They’re all such compliant, nice kids. “Even if I kick the wastebasket across the room and curse at them, they don’t complain,” she says. “They don’t show enough defiance.” Another female manager, while conveying job know-how to a staff member — a woman in her early thirties with one child — was shocked when the woman retorted, “I’m content with what I’m doing now. I don’t want to advance to the point that I sacrifice my family.” “You shouldn’t say that in front of male co-workers,” she was admonished. “If you say that, in the end, you can’t get promoted.” “I suppose it’s the generation gap,” the manager tells Aera. “And it’s not limited to women. More young people are content to remain flunkies. But, in jobs that involve all-round tasks, I don’t think there’s such a thing as a ‘take it easy’ approach.”

Media Watch

Fuel Incentives Planning to drive out to the huge 204-shop Mitsui Outlet Park that just opened in April in Iruma City, Saitama? Trend magazine Dime (June 3) notes that your bargain hunting better save you at least ¥7,900 off the regular prices elsewhere, since that’s what the combined charges for gasoline and expressway tolls are likely to add up when coming from the center of Tokyo. This also applies to the 190-shop Karuizawa Prince Shopping Plaza in Nagano (¥13,767) and the 196-shop Gotemba Premium Outlet in Shizuoka (¥9,334). This raises the question: With gasoline prices possibly headed to ¥200 a liter during the summer, how can the domestic travel industry keep its customer base? One solution to consider is offering subsidies to customers who come by car. The Sankei Shimbun (May 23) reports that, up to the end of May,

Kinki Nippon Tourist, Ltd. (love that name) — selling packages to 10 designated Japanese inns in Shiobara, Tochigi Prefecture — had kickbacks in the form of coupons entitling the bearer to 10 liters of gas at the three participating gas stations. A group of four tourists, a spokesperson tells the newspaper, would be entitled to four coupons. For those who come by other modes of transportation, the tickets can be used to make purchases of up to ¥1,500 at local eateries and shops. Following the April-May Golden Week period, Japan Airlines Corp. began offering gas tickets, valued at ¥2,000, for round-trip passengers on JAL’s Haneda-Asahikawa route. Sankei adds that a Web site to help drivers fill their tanks more inexpensively, gogo.gs, has already attracted 210,000 registered users.

Data Space If you’re running out of places to keep your data, or just want to be extra careful, online data backup services may be the way to go. The Asahi Shimbun (May 31) reports that the new Internet services may obviate the need for purchasing an additional harddisk drive or external storage devices. Internet Disc, operated by JustSystems Corporation, offers a maximum storage of 3GB, and charges a monthly subscriber fee ranging from ¥315-2,940. Microsoft Co., Ltd. offers up to 5GB of free storage on its Windows Live Skydrive. (Maximum single-file size is

50MB.) Ricoh Company, Ltd.’s quanp can accommodate up to 100GB, with charges ranging from free to ¥980. If you only store photos, Hatena Co., Ltd.’s photolife offers virtually unlimited storage for photographs only,

at ¥180. Its only restriction relates to the volume of uploading that can be performed during any given month. The downside? Slightly higher costs, slower file-transfer time (unless via fiber-optic cable) and the limits on security for your personal data. Except for Microsoft, proprietary software is required. Mac OS users have been left out in the cold, at least for now. Mark Schreiber is an authority on Japanese print media and co-author of Tabloid Tokyo 2 (Kodansha International).

August 2008 / ACCJ Journal / 27

Employers: Read This Important new law governing employment contracts

he government recently enacted an important new statute called the Employment Contract Law (Rodo-Keiyaku-Ho), hereinafter referred to as the ECL, which became effective as of March 1, 2008. This law, which provides rules governing employment contracts, is basically a codification of case law and rules found in the Labor Standards Act (LSA) and other Japanese laws. Nonetheless, it brings together under one statute the rules applicable to employment contracts, which are clearly among the most vital to running a business in Japan. We will explain some of the most important aspects of the ECL, as well as discuss a bit of the background to the employment law in Japan, in order to provide an understanding as to how the ECL will impact both foreign and domestic employers in Japan. A. Japanese Employment Law in general Before explaining the details of the ECL, we would like to provide a basic explanation of the Japanese legal system’s treatment of employment by way of comparison with the U.S. system.

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In the U.S., there are basically two types of employment: (1) employment based upon the terms of an express contract; and (2) “at will” employment. The former is a concept easily understandable in both the U.S. and Japan, whereby an employer and employee enter into a written employment contract that specifies the term, compensation, duties of the parties and other terms relevant to the employment relationship. “At will” employment, however, is a legal concept that does not exist in Japan and, thus, can be the source of legal troubles for the foreign employer if applied to employees in Japan. Briefly, “at will” employment means that, in the absence of an employment contract specifying otherwise, an employer can terminate an employee, and an employee can terminate his or her employment, at any time, for any reason or no reason, without penalty, subject to certain exceptions under U.S. State and Federal laws. These exceptions include violations of public policy, the existence of an implied (unwritten) contract, refusal of the employee to engage in illegal acts, and civil rights

By Aki Tanaka and Jiri Mestecky / Employers: Read This

… Japanese law, including the ECL, does not provide for “at will” employment and trumps any private employment contract that provides it. violations based upon discrimination due to sex, race, age, religion, disability or other bases prohibited under U.S. law. In contrast, under Japanese law, virtually all employment relationships are based upon contract, and statutes serve to fill the gaps that exist in the absence of an express written employment contract or specific contractual provision relating to certain employment terms. Moreover, previously under the LSA and now under the ECL, termination of employees must be for cause, the threshold for “good cause” being extremely high from the perspective of U.S. employers. Some foreign employers in Japan seek to include contractual provisions that, for example, specify that either party can terminate the employment relationship based upon terms they decide, including for no reason at all, essentially creating an “at will” employment situation. The problem with this approach is that Japanese law, including the ECL, does not provide for “at will” employment and trumps any private employment contract that provides it. Another approach sometimes used by foreign employers in Japan is to insert a provision in an employment contract that specifies that the law of another country will govern the parties’ contractual relationship. This kind of provision is normally also invalid because employers cannot exclude the application of Japanese employment laws to their Japanbased employees. In light of the foregoing, it is important for both foreign and domestic employers in Japan to understand the ECL. B. Important provisions of the ECL 1. Beginning of employment Under Article 6 of the ECL, an employment contract is created when an employee agrees to work for an employer and the employer agrees to pay for that work. The specific terms and conditions of the employment relationship can, and usually are, set forth in a written employment contract. In Japanese practice, however, Working Rules (Shugyo-Kisoku), in which the employer stipulates and regulates

working conditions, are prevalent in Japanese companies and also form part of the “contract” between the employer and employee. Under the LSA, employers with more than 10 employees must implement Working Rules, must register same with the head of their local Labor Standards Inspection Office, and are subject to fines for noncompliance. Many Japanese companies use their Working Rules as the basis for terms and conditions of employment, and simply provide new employees with a short letter stating individual conditions, such as salary and job duties, in lieu of individual, lengthy employment contracts. Working Rules can be useful in this regard and also because employers can, subject to certain limitations, unilaterally revise such Working Rules. Article 7 of the ECL clarifies that Working Rules govern employment conditions as long as they are reasonable and the employer properly informs employees regarding their content. This article further provides that, if the terms of an individual employment contract differ from the applicable Working Rules, the terms of the employment contract will generally govern. However, under Article 12, in the event that conditions of the Working Rules are more favorable to the employee than the individual employment contract, the relevant provisions of the Working Rules will take precedence. For example, if an individual employment contract provides ¥200,000 per month in salary for a certain type of position, and the Working Rules provide a salary of ¥250,000 per month for the same position, the employee will be entitled to receive the higher amount, regardless of the terms of the individual employment contract. Article 13 of the ECL also provides that any individual employment contract or Working Rules that provide lesser employee benefits than required under applicable Japanese law or contract with a labor union will be deemed invalid. 2. Changing conditions of employment Under Article 8 of the ECL, in principle, employers must obtain the consent of employees when

August 2008 / ACCJ Journal / 29

… Japanese society and law have come to expect that employers will provide training and job security, and not terminate employees without extremely good reason. changing the conditions of employment. Nonetheless, some Japanese court decisions have held that, under certain conditions, employers can unilaterally change employment conditions by amending the Working Rules, without the consent of each employee. For example, one leading Japanese Supreme Court case previously held that a unilateral Working Rules’ change by a company was valid with respect to reducing the company’s mandatory retirement age. The ECL codifies such legal precedent, and stipulates in Articles 9 and 10 that employers can unilaterally amend their Working Rules, but only when: (a) the employer properly informs employees of the changes; and (b) the new rules are reasonable in light of: (i) the possible detriment to employees; (ii) the necessity of the change; (iii) the reasonableness of the changed rules; (iv) negotiations with the labor union and other relevant parties; and (v) other relevant factors. 3. Disciplinary action Examples of disciplinary action taken against employees in Japan may include warnings, reprimands, pay reductions, demotions, suspensions and, in extreme cases, termination. Nonetheless, employers must be very careful and prudent when imposing disciplinary action. Previous Japanese court decisions have at times invalidated certain disciplinary action by employers if such courts find an employer’s disciplinary measures excessive or unreasonable. One recent court, for example, invalidated reducing an employee’s pay for sending private e-mails on a company computer, based upon, among other factors, the fact that no previous warning had been provided by the employer and the employee’s use of company computers for private e-mail was not that frequent. The ECL, in Article 15, codifies Japanese case law and provides that a disciplinary action can be held invalid if, in light of the employee’s actions and surrounding facts, it lacks objectively reasonable grounds and is deemed unreasonable in general societal terms as a misuse of the employer’s rights.

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4. Secondment Rules regarding the secondment of employees is another area codified by the ECL based upon Japanese case law. For example, a Japanese court once held that an ordered secondment by a company was invalid where there was no business necessity, and the company seconded the employee, not to accommodate its business partner’s needs, but rather because the employee was incompetent and unsuitable for any other posts. As a result, Article 14 of the ECL provides that secondment can be invalid if deemed a misuse of the employer’s rights in light of the business necessity, selection of that employee and other factors. 5. Termination of employment One of the lessons that virtually all foreign employers eventually learn, too often the hard way,

Employers: Read This

In recent years, Japan has seen a great increase in employment disputes and awareness among employees of their legal rights.

is that it is not easy to terminate employees in Japan. Companies used to being able to hand out pink slips in other countries for poor employee performance, misconduct or, in some cases, simply because the employee is “not a good fit” — often unwittingly step into a costly, time-consuming and demoralizing legal battle when attempting these actions in Japan. It is important to understand that, in Japan, which until recently was a land of “lifetime employment,” the attitudes toward the employer-employee relationship are rather sacrosanct. In exchange for the famed work ethic and loyalty of Japanese employees (which is changing with increased job mobility), Japanese society and law have come to expect that employers will provide training and job security, and not terminate employees without extremely good reason. One might even say that the employeremployee relationship in Japan is traditionally somewhat analogous to the parent-child relationship. There are numerous court decisions in Japan where the termination of an employee has been invalidated based upon facts that would almost certainly allow termination for cause in countries such as the U.S. Japanese courts have invalidated terminations of employees who have been in the bottom 10% of efficiency ratings , employees who have made false statements in their job applications, and employees who have even defamed their employers. In accordance with Japanese case law, as well as a previous provision of the LSA, Article 16 of the ECL stipulates that termination of an employee will be invalid if lacking objectively reasonable grounds and deemed unreasonable in general societal terms as a misuse of the employer’s rights. Once again, however, it is important to remember that the threshold for “objectively reasonable grounds” and “unreasonable in general societal terms” is extremely high, in comparison to valid grounds for termination in countries such as the U.S. Article 17-1 of the ECL also states that the employer cannot terminate a fixed-term contract without an “unavoidable reason,” the threshold for which is higher than the “unavoidable reason” usually required to terminate

an employment contract with an indefinite term. Consequently, even if an employer inserts certain seemingly customary or “reasonable” grounds for termination in an individual employment contract or the Working Rules, Japanese courts will often construe the same in a very limited way, in furtherance of the Japanese legal system’s traditional protection of employee job security. Therefore, prior to terminating an employee, employers should consult with their Japanese attorneys in order to determine whether there are proper legal grounds for termination, as well as the possible consequences thereof. 6. Penalties One final important point with respect to the ECL is that, unlike the LSA, it provides for no administrative fines or penalties. Rather, the penalty for violation of the ECL is invalidation of the offending contractual provisions, as well as the actions of a party based thereon. C. Conclusion In recent years, Japan has seen a great increase in employment disputes and awareness among employees of their legal rights. This has led to various changes in Japanese employment law, one of the most important being the recent enactment of the ECL. The purpose of the ECL is to clearly set forth the basic rules regarding employment contracts in Japan; and going forward, it will be necessary for both foreign and domestic employers to be familiar with this new law in order to handle Japanese employment matters properly.

Aki Tanaka is a Japanese attorney and Associate with Kitahama Partners, based in Osaka.

Jiri Mestecky is an ACCJ Governor and a Registered Foreign Attorney and Partner with the law firm Kitahama Partners.

Disclaimer: This article is provided for informational purposes only and should not in any way be considered legal advice.

August 2008 / ACCJ Journal / 31

On the Spot Kenneth Roth

rom Tibet and Burma (Myanmar) to Sudan and Zimbabwe, human rights abuses are back in the news. Since its launch in 1978, Human Rights Watch [HRW] has positioned itself at the forefront of the struggle to secure basic human freedoms for millions of people. The New York-based organization now investigates, reports on, and seeks to end, abuses in about 80 countries — anywhere there is oppression, dictatorship or war. HRW works alongside victims and campaigners to raise awareness of abuse, and challenges governments and other power holders to respect international law. Kenneth Roth, executive director, visited Tokyo recently to raise money for the planned opening of an HRW office in Japan, part of a new drive to highlight human rights violations across Asia. His visit coincided with unrest in Tibet and mounting calls for a boycott of this summer’s Beijing Olympics. Why do you want to open an office in Tokyo? Aside from publicizing abuses to shame governments into stopping their abuses and helping prosecute the perpetrators of major atrocities at international tribunals, we also take our information and go to powerful governments, and ask them to

32 / ACCJ Journal / August 2008

use their influence on behalf of human rights. We recognize that the government with the greatest potential influence in Asia is Japan. We want to open an office here so that we can provide our analysis of what it takes to improve human rights and, frankly, to encourage a more activist human rights policy [by Tokyo]. Is Japan an appropriate choice, given its history and mixed record on pushing for human rights elsewhere in Asia since WWII? I recognize that Japan so far has been reluctant to talk about human rights in its foreign policy; or if it does talk about them, it prefers quiet diplomacy to public pronouncements. We would like to see the Japanese government doing more to promote human rights. We feel there are many countries where Japanese influence could be tremendously important, if not decisive. We are not oblivious to Japan’s historical record and understand how that can be perceived as an impediment to a more activist human rights policy. Our experience has been that a frank and complete acknowledgement of the past has been a way of moving beyond it. This is not an impossible task. It may be politically difficult, but Japan needs

Human rights watch

Executive director, Human Rights Watch

to take those steps because the world needs Japan to move beyond its reticence. The fact that a nation may have been responsible for atrocities in the past does not excuse inaction today. While I understand the concerns about moral authority, 60 years is a long time. Apart from Tibet, Sri Lanka and Burma, which other countries concern you with respect to Japan’s role? In North Korea, Japan talks mainly about the [Japanese] abductees, but relatively little about the human rights of the North Korean people. The abductees are very important, but so are the rights of the Korean people, and we would like to see a broader human rights policy towards North Korea. There is concern about the abductions, but there are also North Koreans who have fled to China to escape persecution, but China doesn’t recognize them. Japan could play a very positive role to have these people recognized and insist that China not forcibly send them back to North Korea, where their fate could be

By Justin McCurry / On the Spot

We recognize that the government with the greatest potential influence in Asia is Japan.

WWW.HRW.oRG



BIOGRAPHY



Kenneth Roth has been executive director of Human Rights Watch (HRW) since 1993, having spent the previous six years as the organization’s deputy director. Before that, he was a federal prosecutor in the U.S. Attorney’s Office for the Southern District of New York and during the Iran-Contra investigation in Washington, D.C. Roth’s many investigations around the world have focused on justice and accountability for the worst human rights abuses, military conduct in wartime and the human rights policies of the United Nations and United States. He is the author of more than 80 articles and papers that have appeared in such publications as the New York Times, the Washington Post and Foreign Affairs. A graduate of Yale Law School and Brown University, Roth was partly inspired to work in the human rights field by his father’s experience fleeing Nazi Germany in 1938. Under Roth’s stewardship, HRW has quadrupled in size, extended its geographical reach and launched a range of special programs, including those for children’s rights, gay and lesbian rights, and the human rights responsibilities of international corporations.

as bad, or worse than, that of the abductees. There’s an enormous amount Japan could do to protect human rights in its foreign policy. We want to see Japan play that role, which is why we are committed to a presence in Tokyo to assist with this evolution. How do you propose to persuade Tokyo to change its laissez-faire attitude? We are in the midst of combat

and repression, and can provide details, analysis and prescriptions for improving the situation that I presume Japan currently does not have. We can empower the Japanese government to make it more secure in dealing with these situations. We will also try to spotlight Japan’s bilateral relations with abusive governments and highlight the opportunities to make a difference. When there is greater attention paid to bilateral ties, the government tends to pay more attention to human rights in those relations. Will you also tackle human rights violations in Japan? The plan for the office is to focus mainly on foreign policy, but I’m also aware that there are human rights issues in Japan. The death penalty is one; the extended use of solitary confinement; the very low acceptance of asylum seekers; the sometimes-cruel prison conditions and the extraordinarily high rate of confessions among people emerging from police interrogation; the discrimination against non-Japanese residents. over time we may address them, but it’s a question of resources. Internet censorship has become a new concern for human rights campaigners. Is the situation getting better or worse? Just as the Internet has become a useful instrument of freedom, so it is a target of repression for precisely the same reasons. one of our concerns is the degree to which the major international

Internet companies have become complicit in this censorship of the Internet, and we are working closely with some of them to develop a code of conduct that would minimize that complicity. What is your response to calls to boycott the Beijing Olympics? We don’t support a boycott, but we do believe the olympics provide an opportunity to encourage a positive evolution on the human rights front by Beijing. It’s particularly important for governments to insist on improvements as a condition for sending high-level official representatives to the olympics. It’s one thing not to want athletes to boycott the olympics, but there’s no reason for high-level government officials to attend the olympics if they are being held amid Chinese repression. What role should the private sector play in promoting human rights? It’s a complicated issue, but we believe every corporation has a duty to avoid complicity in human rights violations. That doesn’t mean avoiding certain countries; but it means operating in countries in a way that maximizes respect for human rights, whether it’s the rights of workers in the plant, or the rights of victims of security forces that a company might employ.

Justin McCurry is the Guardian’s Tokyo correspondent.

August 2008 / ACCJ Journal / 33

Search for the Purple Squirrel

Long neglected, women, auditors and bilingual leaders now name their price.

shrinking workforce, demands for different skill sets and an economy that has not sustained a full recovery long enough to promote liquidity in the job market are making it difficult for many multinational companies to fill key positions in Japan. In 2007, Japan’s first round of post war baby boomers reached mandatory retirement age (60 years old), gouging upper and middle management, and creating a potential loss of core skills that could take a generation or more to replenish. The hole was already growing after companies cut back on hiring graduates during the lost decade of the 1990s, resulting in a vacuum throughout corporate hierarchies that many are now rushing to fill. Despite the virtual death of lifetime employment and a generation of internationally educated MBAers prepared to move between companies in a snake and ladder style of which their fathers would never have dreamed, there are just too few workers who meet the requirements of many positions at multinational companies. “No matter what part of the cycle, the supply/ demand curve is stacked against companies,” says

34 / ACCJ Journal / August 2008

Kevin Gibson, managing director at Robert Walters Japan K.K., a global executive search company. Most in demand, says Gibson, are future bilingual leaders who can turn a strategy into a reality. Also in demand are technical experts in areas such as the Japanese GAAP regulations applying to internal corporate governance, modeled on the U.S. Sarbanes-Oxley Act, known as the Financial Instruments and Exchange (FIE) law, as well as in the latest ERP technologies that aim to integrate several organizational data sources and processes into a unified system. Companies are now prepared to pay more for the right people, and have come up with improved retention strategies — including better bonuses for higher performers, and allowing them to progress faster through such avenues as enhanced training. According to the Robert Walters Global Salary Survey 2008, the increased demand for IT project managers capable of completing projects on or under budget has translated into an annual salary, exclusive of bonuses, of between ¥10 million-14 million ($94,940-132,915), up from ¥9 million-12 million in 2007.

By Martin Foster / Search for the Purple Squirrel

“Foreign entrepreneurs have figured out that Japanese women are extremely competent and hardworking.” Lack of auditors conversant in FIE has also exerted upward pressure on salaries. This year, internal auditors with five to eight years’ experience are in a position to command salaries of ¥13 million-20 million, up from ¥12 million-18 million last year. Some of the world’s major companies are finding it difficult to fill positions in Japan. “As a part of global organization, we have certain criteria to search for key management and line positions,” says Stephen Cronin, chief human resources officer, Nikko Citi Holdings Inc. “But we find that the talent pool of capable workers in foreign financial firms is relatively limited in Japan.” Cronin highlights English-language proficiency as a stumbling block. “English is the international business language, but the talent pool with high enough proficiency level is still low in comparison to other markets, including the emerging nations,” he says. Cronin also highlights certain cultural issues hampering business. “Global business requires a more proactive and self-assertive attitude,” he says. “In some instances, [Japan] does not encourage that as much as in some other cultures.” Japanese women are an increasingly important source tapped by recruiters, as the limited opportunities for advancement offered by Japanese companies typically see highly talented candidates gravitate to multinational corporations — sometimes even small international companies. “Foreign entrepreneurs have figured out that Japanese women are extremely competent and hardworking,” says Tim Clark, who, in 1994, founded TKAI Inc., providing an Internet-based tool for conducting market research in Japan, which he sold in a multimillion-dollar deal in 2000. “Half of the small companies led by foreigners in Japan would collapse tomorrow if their executive assistants — mostly women — stopped working.” A recent survey by Nikkei Woman ranked as No. 1 the Japanese unit of U.S. consumer products group Procter & Gamble regarding working environments for women, due to its high percentage of female

Kevin Gibson: supply/demand curve stacked against companies.

managers. IBM Corporation’s Japanese unit was ranked second regarding its eagerness to engage women in the workplace, including providing training to female candidates for managerial positions. Gibson and his staff also recently helped a Japanese female candidate, who had just returned to Japan after living in the U.S. for 10 years, to find a new international position in a global firm. “The candidate was very worried that after so long overseas there would be no position for her in Japan,” Gibson recalls, “and really had no idea of her market value. “She was concerned she would have to take a pay cut,” he says, “or would have to enter into a company where she would not be able to make use of her English.” Gibson and his consultants used the Robert Walters Global Salary Survey to explain to the candidate about her earning potential, then turned to their company’s extensive network of global clients to introduce a number of positions that would allow her to apply her English ability and work on projects around the world. Within four weeks of the candidate returning, she accepted an offer with a global medical company as part of the international SAP support team, according to Gibson, received a 20% increase over her U.S. salary and support in relocating back to Japan. The new employee was then sent to Australia for a two-week project meeting. Nikko Citi`s Cronin looks to work with executive search companies that have a clear understanding of his company’s briefing on the positions,

August 2008 / ACCJ Journal / 35

Search for the Purple Squirrel

The number of private employment agencies here has dramatically increased, following changes to related laws governing the industry in 1999. professional consultants who will work closely with both Nikko Citi and potential hires, and a sufficient pool of talents available on a consistent basis. Recruiters should also have a research capability both in Japan and on a regional or global basis, combined with an in-depth knowledge of the financial business sector, he says. “Do interviews yourself so to develop insights about people at the beginning, and have close dialogue with recruiting company CEOs to learn about the market,” he says. But sometimes demands made on the recruiter can be unrealistic, and the client’s requirements unreasonable for what the market will bear, says Mark Saft, President and CEO of The Ingenium Group Inc. “If your client is holding out for absolute perfection, I know from experience as a recruiter that you are not going to make the placement,” says Saft. Experienced headhunters refer to this totally qualified candidate with the perfect resume and glowing personal qualities as “purple squirrels,” because they don’t exist, and no matter how hard you look for them they are not to be found. Successful recruiters help keep clients and candidates well informed about the realities of the job market, which is important especially in situations when clients are new to Japan, says Saft. “As a result, we are often in the position of persuading clients and candidates to make reasonable compromises in order to achieve a win-win situation,” he adds. The number of private employment agencies here has dramatically increased, following changes to related laws governing the industry in 1999. There was a major expansion in job sectors these companies were allowed to handle — specifically the service industry — according to data from the Ministry of Health, Labour and Welfare. The number of fee-based recruiters grew by more than 3.5 times, for example, from 3,498 firms at the end of March, 1999, to 12,808 at the end of March 2007. Back in 2000, Mark Saft established The Ingenium Group, Inc. to identify and attract bilingual Asian executives for firms in Japan and the Asia-Pacific

region. Saft’s company operates two types of basic search — a retained and a contingent one. The former tends to be exclusive in nature, with the client choosing to work with a single search firm on the basis of an upfront financial commitment, determined as a portion of the anticipated final fee. This fee typically starts from around ¥6 million, or 35% of total anticipated first-year salary, whichever is the greater amount. This arrangement tends to lead to upfront payments of about ¥2 million, according to Saft. A contingency search, on the other hand, entails no fee paid unless Ingenium introduces the successful candidate. In such a search, the client often works with multiple recruiters, “with the assumption that this will create more candidate flow by casting a wider net,” Saft says. This assumed advantage often proves to be flawed, however, as neither side is establishing a secure, fully committed arrangement. “And without that, we cannot provide the same level of service as with a retained search.” Most positions are successfully filled within 60-90 days from the time Saft and his team commence a

August 2008 / ACCJ Journal / 37

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Search for the Purple Squirrel

“’Blacklist’ is a strong word, but every firm has people who they will not represent for a variety of reasons.” search. Following a search customized to the client’s needs, the screening and evaluation, Saft will generally draw up a short list of candidates — typically three — and introduce them to the client. Clients will normally conduct between 2-5 interviews with each candidate before arriving at a decision and extending a formal job offer. In the vast majority of cases, searches end with everyone concerned content. Citing an occasion when this was not the case, Saft found himself having to act as a fireman, so to speak, moving rapidly to prevent a potential disaster for the client, based on findings by his staff only after a candidate had been introduced to a company, initially accepted, and an offer letter issued. Very late in the selection process, the candidate suddenly began acting erratically, and became abusive. Saft and his colleagues concluded that the possibility was great that he could be an alcoholic — something that they had not detected during the search process. “We held a powwow and decided it was in everyone’s best interests to inform the client,” Saft says. “The client was genuinely grateful for the input, and withdrew the letter of intent.” Saft re-conducted the search from scratch, and successfully placed a client with the company. He believes the decision to inform the company of the prior situation worked to bring out Ingenium’s ethics foundation, as well as generate goodwill.

There are well-documented cases of individuals possessing the basic skill sets, but become displaced from the major job markets mainly on character and/or compatibility issues. Unfortunately, they flit between major Asian cities, where they somehow manage to make a living. “There are a number of people who fail again and again, but still keep getting jobs in Asia,” Robert Walter’s Gibson says. “This is because most firms will want to hire people with some local knowledge and, in many cases, will ignore warning signs.” Many people under the radar are on a clear downward spiral. What happens, eventually, is that their companies tend to keep getting smaller, Gibson notes. “When we see that, it is a definite red flag for us!” Which begs the question — do recruiters ever blacklist anyone? “’Blacklist’ is a strong word, but every firm has people who they will not represent for a variety of reasons,” Gibson says without further explanation. The best executive search officers are consummate professionals possessing good communications and presentation skills, as well as several years of business experience, says Ingenium’s Saft. They also tend to be people who want autonomy, but are comfortable working in a team environment; collegiate but with clear financial goals, he notes. Executive recruitment is a competitive, performancebased business that ranks near the top of lists regarding the world’s most stressful jobs. “Headhunting is not for the fainthearted,” Saft says. “It is not for those who want to work regular hours and have a rich social life! “The job suits those who want to earn good money, but are prepared to make the sacrifices necessary to achieve those goals,” he adds. Recruiters have a certain body language, according to Gibson. “I’m not sure how to describe it, but I can spot a headhunter 50 meters away,” he says.

Martin Foster is a freelance writer based in Tokyo.

August 2008 / ACCJ Journal / 39

n reforming the financial sector, you want to have better markets, and a stock and commodity exchange. If the Tokyo Stock Exchange wants to expand, it should be able to have commodities or grains trading sections. To have comprehensive financial products under one umbrella would be good. That is the trend of the global coalition, and the merger and affiliation of stock exchanges. Presently, the grains exchange clears demand and supply only several times a day, which is very backward—probably as backward as in 1730, when the Osaka rice futures started trading. Despite having been

proposed by the Tokyo Grain Exchange, rice is still not traded because the Ministry of Agriculture, Forestry and Fisheries argues it is a state-controlled commodity that cannot be used in futures trading. Ironically, Osaka merchants could do so in the 18th century, but Japanese financial participants in the 21st century cannot. Institutional barriers that prevent better financial players to thrive and trade in Tokyo must be lifted. Players in private equity funds and hedge funds are afraid that the tax treatment may change, that their Tokyo office will be taxed on the profits gained from trading stocks, referred to as permanent establishment risk (P.E. Risk). As a result, they stay away and trade Japanese stocks from Singapore. The U.S. and Japan historically have separated banking and securities, while in Europe, they have investment banks carrying out both functions. The U.S. has been introducing more modern legislation, and I think Japanese law will be as liberal as its U.S. counterpart, so an executive can be on both a banking and a securities board, and it will be easier to share customer information. Japanese households, in total, have ¥1,500 trillion, but half is bank deposits, yielding probably 0.01% interest. Retirees have huge personal assets, but most are not yielding any returns. Public pension funds

amount to ¥150 trillion, which is probably a multiple of five of the second-biggest public pension funds such as in Norway or the Netherlands. Japan has ¥100 trillion in foreign reserves. Mobilizing these assets in medium-risk/medium-return portfolios would be of significant benefit to households, public pensions and the government budget. The Government Pension Investment Fund (GPIF) manages most of the ¥150 trillion public pension fund accumulated over the last 30-40 years. The portfolio is divided into 67% for domestic bonds, 11% for domestic stocks, 9% for foreign stock and 8% for foreign bonds (5% short-term reserves). The GPIF must manage the portfolios carefully, and it interprets this mandate as meaning government bonds are safe, which explains the high governmentbond ratio. Better management and returns, however, would be helpful for future baby-boomer retirees and for future young workers who will have to support the baby-boomer retirees in 15-20 years’ time. The foreign reserves have huge liabilities that match their assets. The liabilities are in yen, whereas the assets are mostly in U.S. dollars and other foreign currencies. So authorities issue fiscal bills to get yen, and purchase U.S. dollar treasuries when they intervene. Presently, returns on U.S. bonds Views expressed in the Opinion Leader column are those of the author and do not necessarily represent the views or policies of the ACCJ.

40 / ACCJ Journal / August 2008

illustration for the accj journal by darren thompson

Tokyo as a Financial Center

By Takatoshi Ito / Opinion Leader

are about 4-5%, depending on maturity, while Japanese financial bills are issued at 0.5%. This huge interest-rate gap makes the foreign reserves a huge profit center of ¥3 trillion annual interest, the equivalent of more than a 1% consumption tax increase. But this is not really pure profit; this is against any future evaluation loss due to possible appreciation of the yen. Lower-interest currency tends to appreciate in the future, I believe. So this interest income should be retained to cover for future possible losses in foreign reserves. One might think that this ¥3 trillion is simply accumulating. This is partly true in terms of assets. However, when interest is received in U.S. dollars, unfortunately, fiscal bills are issued to match it. So though there is pure income, the issuance in liability to match it through a special account siphons these yen revenues, half of which goes into the general account to help the fiscal deficit, and the other half kept in the account as reserves against future evaluation losses. So my personal recommendation would be to keep this interest income separate from the foreign reserves, and handle it for better management of yield, by diversifying the assets so they can be used in the future, in the event the Japanese foreign reserves come under stress. And never siphon it off to general accounts. Takatoshi Ito is Professor, Graduate School of Economics and Graduate School of Public Policy, University of Tokyo.

金融センターとしての東京金融部門の改革には、マーケットの整備と、よ

リオを見ると、67％が国内債券、11％が国内

り先進的な証券・商品取引が求められる。東

株式、9％が外国株式、8％が外国債券（短期

京証券取引所に商品取引や穀物取引の部門

資産5％）となっている。慎重なポートフォリオ

を設け、広範な金融商品を一箇所で扱えるよ

管理が求められるのは当然だが、同行政法人

うにすることが望ましい。それが世界の証券

は国債が安全と考えて、これを大量に運用し

取引市場における趨勢でもある。現在、穀物取

ている。しかし、団塊世代の大量退職を迎え、

引は1日に数回しか需給均衡が成立しない。

15～20年後も若い世代が支えていくことを考

しかも米は依然として取引対象になっていな

えれば、管理とリターンを今以上に向上させる

い。米は国が管理する商品であり、先物取引

ことが大切だ。

には向かないという農水省の意向があるため

外貨準備はその資産なりの巨額の負債を抱

だ。18世紀の大阪では可能だった米先物取引

えている。負債が円建てである一方、資産は大

が、21世紀の日本金融界では不可能とは皮

部分が米ドルなどの外貨である。そこで当局は

肉な話だ。

円を獲得するために政府短期証券を発行し、

優れた金融プレイヤーの活発な取引を阻害

介入時には米債を買う。現在、米国債券のリ

する制度的障壁は取り除かなければならない。

ターンは満期にもよるが約4～5％。それに対し

プライベートエクイティファンドやヘッジファン

て、日本の政府短期証券は0.5％。この大きな

ドの関係者は、税制が変わり、証券取引の利益

利回り格差ゆえに外貨準備が年間3兆円もの

が課税対象になるのではないかと危惧してい

利益を生んでいる。その額たるや、1％の消費

る。その結果、日本に拠点を設けることを避け、

税増税よりも大きい。

シンガポールから日本株を取引している。

とはいえ、これは純然たる利益ではなく、円

日米では昔から銀行と証券が区別されてき

高になれば評価損になる。そして低金利通貨

たが、欧州では投資銀行が両機能を担う。米国

は将来的に高騰する可能性がある。したがっ

は時代に合った法制度を取り入れており、日本

て、この利回りのプラス分は、外貨準備の将来

も米国並みの自由化が期待される。

の損失に備えて確保しておく必要がある。しか

日本の個人金融資産は1500兆円あるが、そ

し、利回りを米ドルで受け取っても、政府短期

の半分は金利0.01％程度の銀行預金になっ

証券はそれに見合うように発行される。特別会

ている。定年退職者は大きな個人金融資産を

計での政府短期証券の発行で円建ての収入が

持つが、そのほとんどがリターンを生まない状

奪われてしまい、その半分が財政赤字の埋め

況にある。さらに、公的年金は150兆円と世界

合わせに一般会計に組み入れられ、残る半分

的にも突出しており、外貨準備金は100兆円

は将来の評価損の備えとなる。個人的には、こ

に上る。これらの資産を中リスク中リターンの

の利回りの収入を外貨準備から切り離し、投

ポートフォリオに投入すれば、個人にも公的

資対象を分散すれば、もっと利回り管理が改

年金にも政府予算にも大きなメリットがある

善すると考える。せっかくの利益を一般会計に

はずだ。

吸い取られないようにする必要がある。

年金積立金管理運用独立行政法人は、過去30～40年間に蓄えた150兆円の公的年

伊藤隆敏東京大学大学院経済学研究科・

金基金のほとんどを管理している。ポートフォ

東京大学公共政策大学院教授

オピニオンリーダーに掲載されている意見はすべて著者個人の意見であり、 ACCJの意見や活動を代表するものではありません。

August 2008 / ACCJ Journal / 41

Home Loans from Hell How a high-risk foreigner beat the credit crunch to buy his dream home.

he foreigner who sets out to borrow money and buy property in Japan may end up in a bizarre twilight zone where Alice in Wonderland meets Franz Kafka, where even breathing seems to require notarized certificates and seals. And yet — unless you’re into dirty politics or drug dealing — this may be the only time in life you’re expected to show up with a briefcase full of cash. You may only glimpse this weird world if you are a mainstream salaryperson with a Japanese spouse and buying a standard property in the city. As bankers love normality, your local branch may be eager to lend 90% of the sale price at rates as low as 2%. If, on the other hand, you’re a “double-gaijin” couple without permanent residence, selfemployed, buying an unusual rural property and deluded by

42 / ACCJ Journal / August 2008

previous mortgage experiences elsewhere — prepare for the grand tour. The good news is that — after much frustration and many disappointments — you may still end up with your very own “jutaku loan.” Having dabbled at country house-hunting for years, we already had the first clues. In other countries, you can drive around seeking “For Sale” signs, or check a central online registry listing all properties on offer. But in Japan, there are very few signs and no central registry. So each local agency must be checked tenaciously each day. This distorts the market — and gives a huge advantage to foreigners who live or weekend in the boondocks. As most locals want to walk to the pachinko parlor, agents don’t even promote the remote, unspoiled

sites many foreigners favor. So when we asked about a secluded, 4,300-square-meter forest glen with a decent-sized house, the agent said: “oh, you wouldn’t want to see that — it’s too remote.” Not only did it fit the bill, it was love at first sight for the whole family. So we made an offer, contingent on finding financing within six weeks. And we got a certain naughty thrill watching a burly crew-cut guy count the wad of cash we put down as deposit. If we’d had cash for the full amount, the whole thing could have been done in a day; cash sales in Japan are very straightforward. But when banks get involved in the transfer of an unusual property to unusual customers — life gets complicated. Having made the offer, we went into a frenzy asking

By John R. Harris / Home Loans from Hell

But when banks get involved in the transfer of an unusual property to unusual customers — life gets complicated.

advice everywhere. As anecdotal accounts of banking experiences, good and bad, streamed back from friends of friends, a consensus quickly emerged. Mike Buttrick, a Canadian neighbor in Chiba, told us, “Shinsei rejected me because they said they won’t lend on property outside Tokyo.” Citibank, we discovered, has no mortgage business in Japan. And when Shinsei Bank confirmed they would only lend in Tokyo to Japanese or foreigners with permanent resident status, we shuffled them to the bottom of our list. According to Sandeep Deobhakta, head of Shinsei Bank, Ltd.’s Retail Banking Group, new consumer credit regulations make repossessing property from a foreigner who has missed payments and left Japan more difficult and risky. However, the bank will still consider “on a caseby-case basis” applications from foreigners without a Japanese spouse or permanent residence. All this was hugely disappointing, as we had hoped years of doing business with both banks would give us at least a toe in the door. When several people suggested Karen Sieg at the Azabu-Juban branch of the Bank of TokyoMitsubishi UFJ, I was encouraged. I remembered interviewing this very helpful lady years back when it first set up services for foreigners. Alas, Sieg alerted me to an unforeseen obstacle — that my one-man company should show a

profit, however slight, for three consecutive years before I wanted to borrow. I thought consistently healthy gross revenue would suffice. Now I’m wiser and have a better accountant. At least it took just 30 minutes to discover UFJ was “no go.” Then we saw ads in a magazine for New City Mortgage aimed at foreigners. But when we phoned we were told the advertised service for foreigners was being discontinued. As one after another lender rejected us when they heard we were a couple of years short of being entitled to permanent residence, we began to sweat and to consider offering friends extortionate rates for a three-year bridge loan. Then one day my wife Mindy heard from a friend and I heard from another about a mortgage broker specializing in foreigners. “It’s called ISG,” I averred. “No, it’s IFG,” she replied. After some argument, I was pleased to find for once I was also right: two gaijin-specialist mortgage brokers have similar names. Although on extended parental leave, Mindy retains skills honed as a financial planner tasked with disciplining Swiss banks. So I expected a shrewd appraisal when she called to find out what beyond “s” and “f” separates ISG from IFG. Phoning ISG Japan Mindy encountered the “very helpful and knowledgeable” Naoko Machida. But she came away with the impression that ISG works primarily



SNAPSHOT



Beyond the best terms, there are four things any customer — and any bank shareholder — should want from a mortgage lender: 1. Triage — a quick, decisive initial appraisal to ensure no one’s time gets wasted 2. Common sense paperwork — no jumping through needless hoops 3. Due diligence that looks at actual customers, not stereotypes 4. Speedy outcomes

with Tokyo Star Bank, a lender that tends to limit its exposure to 60% of the sale price — where our target was 80-90%. And that tipped the balance. Tony Collins, a dapper young Brit, took Mindy’s call at IFG Asia Limited. “And I was quickly impressed at how much he knew about the system and all the lenders in town,” she reported. Best of all, Tony did not see our lack of permanent residence status as an insuperable obstacle. At first, though, I smelled a rat. IFG wanted a ¥30,000 registration fee, plus ¥300,000 if they managed to secure us a loan. (That’s the minimum; fees are higher when large sums are involved.) “Isn’t that a bit much?” I remember saying. No shame in admitting I was dead wrong. If your Japanese is fluent, your case easy, and you are happy to take the first offer coming your way, by all means, do it yourself. But, if you need to shop your deal all over town, get a good broker. The documentation required is mind-boggling — and many

August 2008 / ACCJ Journal / 43

… each week brought demands for some new and, from my perspective, irrelevant document, such as residence certificates for our children. 

SNAPSHOT



■

Relative to other countries, Japan offers good legal protection and excellent value in real estate — if you choose carefully Accelerated depreciation rules on older structures means ownership can yield attractive tax advantages Sell a property bought less than five years earlier and you will face punitive capital-gains tax As selling property is easier for residents, calibrate your investment window with your period of stay in Japan

lenders have their own eccentric requirements. So at our first meeting, Tony presented a neatly itemized, bilingual list of more than 20 basic documents we needed to prove our own bona fides — plus an equally long list of documents certifying every detail about the property. Many of these need to be sourced from various bureaucracies: national and local tax offices, the ward office or city hall, the land registry office and more. Each document must be letter perfect and match all the others in every detail. If a bank finds one document spells your family name in capitals, while all the others have it in title case, it may be taken as evidence of moral turpitude. Collins, and his colleague Kanae Hayashi, patiently counseled us

44 / ACCJ Journal / August 2008

ACCJ

On June 25, the ACCJ Architecture, Construction and Real Estate Committee presented a lunch panel on buying property in Japan, which featured presentations by mortgage broker Tony Collins, realtor Bobby Dozier and tax specialist Joseph Daniels. Some key lessons for foreign residents:

From left, Tony Collins of IFG Asia Limited; Joseph Daniels, associate at Japan Auxiliary (JAX); Bobby Dozier, real estate consultant at Platinum Ltd.; and writer John R. Harris.

through this bureaucratic nightmare, and helped us document our financial prospects and longterm commitment to living in Japan. Armed with this evidence, they were then able to get a variety of lenders to take a closer look. Any lingering doubts about the wisdom of using a broker were quickly dispelled by a rash decision to continue on our own with one first application we had made. Surely, we thought, our 10-year relationship elsewhere would be an asset as a bespoke private banking outfit opened branches in Tokyo promising luxury, personalized service. What does “luxury” mean in Japan? on an old episode where Homer and family visit Japan, The Simpsons hit it spot-on. As TV’s funniest family checked

into a hotel that resembled The Imperial, the marquee boasted: “Sale: now 20% more bowing!” one experience started with rosy assurances as to how easy it would be borrowing 80-90% of the sale price … “So why not just shift all your deposits today?” A week later, we were told that copies of relevant documents would not do; originals were needed, even just to consider our case. No other bank required this, but agent and vendor went to great lengths to provide extra copies of the deed and other key documents for which bureaucrats charge ¥500 a page. I dread to imagine how much time a certain bank’s staff spent on our case, but each week brought demands for some new and, from my perspective, irrelevant document, such as residence

Home Loans from Hell

overnight, dozens of cherry trees — our cherry trees! — had magically burst into full, flagrant bloom. Suddenly, it all seemed worthwhile.

certificates for our children. Six weeks later — with our offer on the very edge of expiry — we were still waiting on that bank when Collins phoned with the good news. Shizuoka-based Suruga Bank had agreed to lend us 90% of the sale price, at a rate higher than the optimum but far short of usury. We were over the moon. Finally, the big day arrived. All of us — vendor, agents and IFG staff — had to schlep to a branch on the far side of Tokyo for one final bizarre four-hour ceremony in the presence of a “judicial scrivener,” an official notary. We worked through a huge stack of documents. on each I had to affix my hanko (registered seal) and handwrite my name and address. This might not sound onerous, except that rendering kanji is not easy for a klutzy

southpaw like me. Luckily, my kanji-capable wife was allowed to inscribe the loan terms. By this time, though, if a nurse had appeared to draw blood to use as ink we would have been hardly surprised. When all the documents were done at long last, in a great show of prestidigitation, the scrivener compared each hanko mark with its corresponding inkan shoumeisho — the seal’s certificate of registration. A process one must see to believe, this is done by flicking one page rapidly over the other 10 times or so. Then came the ultimate and surreal moment: The banker appeared with huge stacks of ¥10,000 notes, which he parceled out to the vendor and agent, who laboriously counted it. once all were satisfied, the vendor passed me the keys.



SNAPSHOT



When borrowing to buy: ■ Get pre-approval from a lender before you go house shopping ■ Borrowing is much, much easier if you have a Japanese spouse or permanent residence status (you can apply after 10 years here) ■ Lenders generally want to see stable employment, income and tax records going back three years ■ With the exception of resorts like Karuizawa, many lenders are unwilling to consider property outside major urban areas ■ As some foreigner-friendly lenders exit the market, new players like National Australia Bank are entering

After four hours in a small, stuffy conference room, after two months of nail biting and nightmares, it is over. We are reeling and giddy with relief. Next morning, keys in hand, we drove up the hill to our new forest home. And our jaws dropped. overnight, dozens of cherry trees — our cherry trees! — had magically burst into full, flagrant bloom. Suddenly, it all seemed worthwhile. By the skin of our teeth — and with help we will never forget — we managed the impossible. The irony is that help came not from where we expected — banks that have courted our business for years — but from a provincial bank we’d never heard of and a type of service provider we never knew existed.

John R. Harris is a speechwriter and freelance journalist.

August 2008 / ACCJ Journal / 45

Photos Jeremy Sutton-Hibbert

Business Mind Mapping

This easy method boosts innovation, communication and much more.

he pages of Warren Arbuckle’s (pictured above) notebook offer a riot of colors and spider webs of meandering lines. On each page, the lines branch out and then connect to other lines, which, in turn, connect to more lines. They are drawn in every color of the rainbow — yellows, pinks, greens, you name it. Scattered about the pages are small doodlelike drawings, such as caricatures or icon-type items like keys. The one thing you won’t find in Arbuckle’s notes is notes — as in linear strings of words. The founder of Tokyo-based U-cubed Inc. calls his creations “maps.” Looking like the work of an imaginative 13 year old with too much time on his hands, there is, nonetheless, a clear method to the madness. The maps, Arbuckle says, help him think, innovate and plan his projects. “Mapping helps both my logical and creative thinking. It gets the hand moving. It gets the eyes looking at colors and thinking about things,” he says. “When you get involved in it, it kicks your mind into gear; it gets you thinking much better.” These maps are at the heart of Arbuckle’s business. U-cubed runs training courses in “business mapping,” a technique he devised to make business people more innovative — and better communicators. That said, mapping isn’t new. Whether talking about business, education or science, people have been

46 / ACCJ Journal / August 2008

organizing their ideas in graphical and non-linear forms for centuries. It was in the 1970s that an educational consultant and efficiency guru, Tony Buzan, turned mapping into an industry. He developed “mind maps,” claiming that they can assist in unlocking more of our thinking potential. He has written dozens of books on the subject. Buzan claims that people remember things by imagination and association, and memories are stored images. Words are important, but only insofar as they trigger the images stored in our minds. So those lead-gray, bulleted strings of words we jot down during a business meeting or lecture are really collections of key words that trigger the more significant memories behind them. When mapped, these triggers become much more effectively organized. Though the term “mind mapping” may have an ominous ring to it — akin to, say, “body snatching” — it’s simply a tool to help improve productivity, what speed reading attempts to do. While not purely scientific, neither is it a remarkable pseudo science, in the realm of the paranormal. Arbuckle, a certified project management professional, studied Buzan’s methods over a three-year period. While working at a medical consultancy in Tokyo some 15 years ago, he found himself mapping

By Geoff Botting / Business Mind Mapping

Mapping, which takes less than an hour to learn, serves as a facilitation tool for problem solving. for his job. Soon he was teaching it to his co-workers. “The reason we used [mapping] was because it was fast and easy. We found that we could get our thoughts organized and clarify them on paper with just the key words and putting the lines together — just like a map,” he says. Arbuckle and his team also used mapping for their clients. “We were consultants, so obviously people would come to us with some kind of problem or need that they couldn’t fulfill themselves,” Arbuckle says. “A lot of it was market research for Japan. So we used [mapping] for the problem solving. “ U-cubed’s training course evolved. Simply put, Arbuckle fused Buzan’s ideas with his own experience and expertise in problem solving in a business context. The approach taught by U-cubed is about stimulating innovation and communication. Mapping, which takes less than an hour to learn, serves as a facilitation tool for problem solving, says Arbuckle. “The [ultimate] result is not the map. What you’re trying to do is focus, clarify and organize your thinking,” he says. “The map is just a piece of paper, and you’ll probably throw it away in the end anyway.” His company, run out of an office in Shinagawa Ward, has an impressive list of clients: Insurer AIG Edison Life Insurance Company, trading house giant Itochu Corp., food and beverage maker Calpis Co., Ltd., and pharmaceutical Eli Lilly and Company, to name a few. With the course’s goal being to prompt innovative thinking and/or improve communications, participants brainstorm and discuss their ideas, which are added to a large master map everyone can see. As the map takes shape, participants are inspired to think about and discuss the problem at hand. So what happens in the classroom? A group of co-workers, for example, spends the first morning getting acquainted with the concept of left and right brain functioning. Then they’re shown how to make a map. Initially, they draw their own, then discuss their creation, and eventually collaborate in making one large map projected in front of the class. The afternoon session is devoted to figuring out solutions for a specific problem the client brings in.

A pharmaceutical company, for instance, once wanted to know how to expand its global R&D. Mapping is used to prompt some brainstorming and problem solving. Arbuckle takes a back seat at this point, circulating around the room while observing. “I provide information, or maybe questions, but not answers,” he says, “because it’s the process the students take in order to get to an answer that is important.” The second day is spent on analysis, coming up with solutions and figuring out action plans. If participants disagree, or if contradictions emerge, during the session, then that’s a good thing, Arbuckle believes. “The contradictions come because people see things differently,” he says. “You want them to understand that different people have different perceptions.” The importance of innovation can’t be underestimated these days, according to Arbuckle. What sets companies apart in a globalizing marketplace is their ability to innovate — the conventional standards, such as quality, provide less and less of a competitive edge. “You can bring in consultants, and they can help. But, really, your expertise is within your company. You’ve got those people there every day who are struggling with the problems,” Arbuckle says. “If they’re taught how to be more innovative in their thinking — which means coming up with ideas and making connections — they will come up with innovative solutions. “It’s just that we’re not trained to be creative or innovative,” he says. “We’re trained to be more logical — reading, writing, arithmetic are what’s emphasized in education.” As for communications, the mapping use of lines, images and simple keywords tends to prompt greater discussion than long lists of text, according to mapping advocates. That’s especially true in multicultural settings. Atsushi Nakamura, a manger in the Inorganic Chemicals Section of Itochu, is convinced of such benefits. “I find it extremely useful, both for myself and in groups with other members of my staff,” he says, while showing off a stack of papers bearing the various maps he has drawn lately.

August 2008 / ACCJ Journal / 47

If anyone in your valued network is not an ACCJ member yet, help sign them up. Recommend a new member to connect the best in business. Send in the sign-up form included with the New Member list enclosed with your Journal, or call us at 03-3433-7304. The ACCJ Journal is a member benefit and the only business magazine sent to all ACCJ members.

Business Mind Mapping

“But now we do the mapping, everyone joins in and starts talking. It’s a completely different atmosphere.” Since signing up his office as a client of U-cubed, “communications has really improved,” says Nakamura, who speaks in rapid-fire bursts. He used to be frustrated at office meetings, which he likened to having a stern schoolteacher (him) lecturing a class of lethargic kids (his staff members). “I used to have meetings with my staff about once a week to keep up to date with our information and determine direction. But I was the one who did most of the talking. I’d have to reach out and say, ‘So, what does Mr. So-and-So think?’ and so on,” Nakamura says. “But now we do the mapping, everyone joins in and starts talking. It’s a completely different atmosphere.” Nakamura also believes that business mapping may be especially useful for a Japanese office culture, as a way of coaxing opinions and ideas out of normally reticent employees. “Often when you have meetings, even with just seven or eight employees, it’s quite difficult for the junior- and senior-ranking [Japanese] employees to exchange opinions freely. They tend not to express whatever ideas they’ve got flowing through their minds at that moment,” he says. “So [mapping] is a tool that can prompt expression.” But is business mapping for everyone? Chet Borucki, a professor in the MBA program at Temple University Japan, believes that most business people can benefit from using the technique, but adds that “classic left-brain people” — those whose thinking is highly analytical — may have trouble accepting it and adapting to it. That conclusion was recently reached after the professor invited Arbuckle to run a business mapping session for his human resources class of about 20 students. During the session, a third of the students embraced it and an equal portion were “fence sitters,” according to Borucki. The remaining third, for the most part, seemed a bit skeptical, but with a potential of becoming converts. Only two or three rejected the approach, saying, “It’s not for me.” “I walked away from this half-day exercise with a very positive feeling that this could be a very successful tool,” Borucki recalls. The professor’s big challenge that day was to

generate communications among a very multicultural mix of mainly Japanese, other Asians and Westerners. Though the session didn’t exactly turn everyone into extroverts, “we saw behavior shifts among some of the students,” says Borucki. As Borucki explains in an e-mail: “Traditionally, in an Eastern context, the professor is revered; and, as such, in the traditional ‘Eastern’ classroom, the result is lecturing [monologue] rather than discussion [dialogue].” It’s the classroom dialogue that Borucki and the other faculty in Temple University’s MBA program are eager to stir up. The high diversity in the class is in regard to not just nationality, but also the industries in which the students work. Most can attend classes only on Saturdays, as they are fulltime employees. Business mapping, Borucki concludes, can be a useful tool in achieving the program’s goal. “[Business mapping] was, I’d say, a catalyst for enhancing dialogue and communication within a multicultural type of a setting. That’s because you’re mapping general conceptions,” Borucki says. “It’s not as if someone is reading many lines or paragraphs, or pages of written text. It’s concepts with arrows and there are lines drawn between them, and people can easily resonate and interpret a map by just looking at it.” Web site: www.u-cubed.bz E-mail: warren@u-cubed.bz Geoff Botting is a freelance writer based in Tokyo.

August 2008 / ACCJ Journal / 49

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Building Memories

ome people say that the best ideas in business come to us when being out of the office traveling. Sometimes it happens when we go out on the road, or during team outings, or at times even during personal vacations. Is this true for all of us? I tend to agree, not only because I love traveling, but also because I witness this happening at our hotels more and more during MICE events. In fact, at The Westin Tokyo, for example, MICE events are more than events; they are memories that involve all the senses and evoke personal renewal for participants. So how do we make this happen? As we recognize our customers’ changing lifestyles and evolving expectations,

our responsibility has increased to transform MICE from events into MICE experiences that are memorable. What is a MICE experience? A MICE experience starts and finishes with our customers, and focuses on what they value most for this experience, be it culture discovery or a once-in-a-lifetime experience. In the end, our job is to engineer an experience that results in great memories. Today, we have become “memory designers” that personalize experiences with a signature inspiration from our brands. At the heart of a MICE experience is also the destination. Japan is one of the best untold secrets for MICE experiences — as the passion for details and harmonious balance of the past and future, the culture and entertainment, and the refinement and the freshcasual being elements of the unique formula for a MICE experience. Japan has always been a great place for meetings and, today, has the opportunity to lead this segment and develop a reputation for unforgettable memories. Javier Cedillo-Espin Regional Director of Sales & Marketing Japan, Korea, Guam Starwood Hotels Japan Company

August 2008 / ACCJ Journal / 51

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Airlines

Visit nwa.com/jp to start planning a trip that suits you today.

Air Canada

Hotels

Tel: 03-5405-8800 (in Tokyo) Toll-free: 0120-048-048 (from outside Tokyo) www.aircanada.jp Air Canada, together with Air Canada Jazz and other business units of parent company ACE Aviation Holdings Inc., provides scheduled and charter air transportation for passengers and cargo to more than 150 destinations, vacation packages to over 90 destinations, as well as maintenance, ground-handling and training services to other airlines. Canada’s flag carrier is recognized as a leader in the global air-transportation market by pursuing a strategy based on value-added customer service, technical excellence and passenger safety. Air Canada offers electronic ticketing and Web check-in on most North American and international routes, and continues to expand convenient online services, simplified fare products, innovative multi-trip Flight Passes and self-service check-in kiosks.

Northwest Airlines Toll-free: 0120-120-747 (land line) 0476-31-8000 (mobile) nwa.com/jp With Northwest Airlines® E-Services you can fly your way, whatever your taste. My NWA Info makes managing your reservations and your WorldPerks® account a piece of cake. And with Email Express, the latest tempting offers are sent straight to your inbox. Select your favorite seat onboard from your favorite seat at home. And it only takes a few mouse clicks to print your boarding pass, wherever you are. Northwest has also recently launched a new check-in process at Narita Airport, coinciding with the removal of the X-ray machines checkpoints in the North Wing of Terminal 1. The new system, originally introduced at Narita, enables faster transaction times for customers who have checked in at nwa.com/jp. Northwest Airlines will continue introducing the latest technologies to improve convenience for our customers.

52 / ACCJ Journal / August 2008

Grand Hyatt Tokyo Tel: 03-4333-1234 Fax: 03-4333-8885 www.tokyo.grand.hyatt.com Located in the heart of Roppongi, Grand Hyatt Tokyo is a dynamic “Lifestyle Destination Hotel” ideal for dining, entertaining and relaxing. A total of 389 uniquely designed guestrooms and suites, using a selection of natural woods and fabrics, create the ideal residential ambience with spacious bathrooms with deep soaking tubs, allowing water to luxuriously overflow, and an invigorating “rain shower.” A line up of 10 unique restaurants and bars focuses on culinary authenticity, design originality, quality and service to provide guests with a truly exceptional dining experience. There are 13 function rooms totaling 2,800 square meters of conference, banquet and wedding space, featuring advanced technology and administered by a dedicated team of planning specialists. Nagomi Spa and Fitness provides hotel guests and private members with a peaceful and serene facility for fitness and relaxation, equipped with a red-granite stone swimming pool, illuminated whirlpool, fully equipped gymnasium, relaxation areas, sauna and eight private spa treatment rooms. Experience Grand Hyatt Tokyo, a dramatic hotel suitable for all occasions, offering the ultimate in comfort and luxury.

Hotel New Otani Tel: 03-3265-1111 www.newotani.co.jp/en/tokyo/ Surrounded by a spectacular 10-acre Japanese garden, one would forget that the New Otani is located in central Tokyo, with easy access to the Ginza, Roppongi, Shibuya, Shinjuku— business districts as well as tourist, entertainment attractions. 34 function rooms equipped with high-speed Internet access, range from 46 square meters to approximately 2,000 square meters, accommodating a maximum of 2,500

guests buffet-style. To mention a few of the facilities: two business centers, health club, outdoor swimming pool, travel agency, as well as over a 100 shops, 38 restaurants and bars, including the Michelin-star La Tour D’Argent. Without the hassle of stepping out of the hotel, you can also enjoy the convenience of being downtown—post office, convenience store, grocery store, clinic, dentist, ATM, art museum and even a chapel offering regular services. New Otani is composed of three different hotel types—Executive House ZEN, The Main and Garden Tower. The Garden Court features office functions. Being chosen as the venue for the G7 Tokyo Summit of 1979, 1986, and 1993, as well as numerous large-scale conventions and accommodations for heads of State, the New Otani has the savvy to respond to the complex and versatile needs of our discerning guests.

Sheraton Grande Tokyo Bay Hotel Tel: 047-355-5555 Fax: 047-355-5566 www.sheratontokyobay.co.jp www.sheraton.com/tokyobay In celebration of our 20th Anniversary, the Sheraton Grande Tokyo Bay Hotel is undergoing a $10-million renovation, to be re-launched as a leading international meeting facility by March 18. We remain one of Japan’s favorite hotels and the official one for Tokyo Disney Resort. The timely refurbishment will position us as one of the leaders in the family, conference and incentive markets, in a destination that attracts global travelers. The warm, welcoming revitalized spacious guestrooms will be enhanced by our brand’s signature comforts, including the nine-layered custom-designed Sheraton Sweet Sleeper beds, high-speed Internet access, flat screen televisions and roomy work areas. The Link@Sheraton, at the heart of our new lobby, will serve as a sleek communications hub where guests can catch up on e-mails, enjoy a board game, watch television, relax with a good book or enjoy a selection of gourmet treats. This is enhanced by our brand’s new signature lobby scent “Open Skies,” the new Sheraton soundtrack, custom-designed lighting and gardeninspired botanicals.

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We will re-energize our dining options with two new restaurants: the casual and lively Toastina, where guests indulge in a variety of freshly prepared items, and enjoy live music; and the Maihama Teppanyaki Grill.

Sheraton Miyako Hotel Tokyo Tel: 03-3447-3111 Fax: 03-3447-3133 www.miyakohotels.ne.jp/tokyo www.sheraton.com/miyakotokyo In addition to our convenient location in central Tokyo, the Sheraton Miyako Hotel Tokyo provides genuine hospitality and comfort in a tranquil environment, surrounded by an exquisitely landscaped Japanese garden. We offer a combination of traditional Japanese and contemporary Western, with an assortment of restaurants, banquet facilities, a swimming pool and guestrooms fashioned for complete comfort. The interiors of all 495 guestrooms combine Japanese and Western styles. The effect is harmonious and calming—just right for tourists and businesspeople seeking comfort without interruption. To ensure a sound sleep in a superior bed, every room has top-quality Sheraton Sweet Sleeper Beds. We believe our bed offers the best sleep in the world! Whatever brings you to Tokyo, you’re guaranteed a premier-quality stay. Our restaurants offer a choice of fine cuisine: Japanese, Chinese, French and Continental menus that cater to a variety of culinary preferences. And our soothing bars and lounges are perfect for your relaxing hours at the hotel. For those inclined to physical activity during their stay, we are equipped with a 25m indoor pool, private health club with sauna, whirlpool baths and training gym

The Peninsula Tokyo Tel: 03-6270-2888 Fax: 03-6270-2000 http://tokyo.peninsula.com/ Whether it’s a glamorous charity ball, board meeting or small seminar, The Peninsula’s sweeping main entrance and Peninsula Pageboys welcome guests in grand style. Located in the prestigious Marunouchi financial

district, opposite the Imperial Palace and directly connected to four train lines, The Peninsula is the most accessible luxury hotel in Tokyo. Facilities include a grand ballroom, junior ballroom and five elegant function rooms totaling 1,200 square meters. The Grand Ballroom features views of the Imperial Palace Gardens, making it the only grand ballroom among Tokyo luxury hotels to offer views of the Imperial Palace Gardens, with natural sunlight for inspired thinking and enhanced daytime events. All function rooms feature the latest in technology, and are Wi-Fi enabled to optimize communication access from all points in the meeting venues, public areas and guestrooms. To ensure that organizers are never out of touch with their guests and meeting delegates, guestrooms feature two types of telephones. The wired phone can be synchronized with guests’ personal mobile phones for automatic transfer of incoming calls via Bluetooth synchronization to any handset in the room, and to make Skype calls. The portable phone functions anywhere within the hotel, yet converts to a mobile phone for outgoing calls throughout Japan when outside.

The Westin Tokyo Tel: 03-5423-7760 Fax: 03-5423-7766 www.westin-tokyo.co.jp A respite in the heart of the city, The Westin Tokyo’s understated European elegance creates an ideal venue for productive and successful meetings, where delegates can rejuvenate the body, energize the mind and reflect on the business at hand. Sophisticated, yet welcoming surroundings reflect rich textures, fine furnishings and absolute comfort. Unprompted, distinctive service awaits delegates on arrival and during their conference or meeting. Superb facilities, creative, delicious cuisine and unconstrained, attentive service are hallmarks of The Westin Tokyo’s fine reputation for meetings, conferences and events. From largescale events in the opulent Galaxy Ballroom, to small gatherings in one of eight other function rooms, the options are flexible, with expert staff on hand to offer advice and assist in making the right venue choice.

Whether the event is a business lunch meeting or an elaborate themed banquet for 600 people, the hotel’s culinary team produces imaginative and personalized menus fashioned from the freshest local ingredients to suit each occasion. As well as the elegant surroundings, the banquet and conference facilities are also equipped with state-of-theart technology, including audiovisual and lighting systems, and simultaneous translation.

Yaesu Fujiya Hotel Tel: 03-3273-2111 Fax: 03-3273-2180 www.yaesufujiya.com Situated near the Yaesu south exit of Tokyo Station, the hotel is ideally located for you to take a stroll around the Marunouchi area or the Ginza shopping district. It is most conveniently located for business and sightseeing in Tokyo. The warm and friendly atmosphere will make you feel at home. We have a wide range of accommodations, from practical Western-style rooms to quiet, restful Japanese rooms, so that you can enjoy a relaxing stay. We have a wide variety of restaurants. Katsura serves traditional Japanese cuisine and sushi, while Wisteria offers healthy Western cuisine. In the evenings, guests can enjoy our chef’s unique menu with a choice of over 100 wines selected by our resident sommelier. Our versatile facilities, including banquet halls and conference rooms, can meet all of your needs: be it for a party, wedding reception, business meeting or other kinds of functions. We look forward to serving you soon!

Human Engagement Consulting The Gallup Organization Tel: 03-5148-7031 Fax: 03-3544-3966 E-mail: rex_valentine@gallup.com www.gallup.com Gallup has studied human nature and behavior for more than 70 years, employing many of

August 2008 / ACCJ Journal / 53

the world’s leading scientists in management, economics, psychology and sociology. Consultants help organizations boost organic growth by increasing customer engagement and maximizing employee productivity through measurement tools, coursework and strategic advisory services. Gallup’s 2,000 professionals deliver services at client organizations, through the Web, at Gallup University campuses and in 40 offices globally. The Gallup Poll has built its reputation on delivering relevant, timely and visionary research on what humans around the world think and feel. Consultants assist leaders to identify and monitor behavioral economic indicators worldwide. Gallup Consulting is global research-based, specializing in employee and customer management. Consultants draw on a suite of constructs and tools like HumanSigma to drive business performance. Gallup University is a leading provider of degree and non-degree programs in management education and leadership development—a complete curriculum on managing employee and customer assets, and the factors driving individual and organizational performance. Gallup Press educates and informs the people who govern, manage, teach and lead the world’s 6 billion citizens. In addition to books on groundbreaking management, social and political research, the Gallup Management Journal is a monthly online business publication with actionable insights for business leaders and serious management thinkers.

Private Facilities Tokyo American Club Tel: 03-4588-0687 Fax: 03-4588-0330 E-mail: membership@tac-club.org www.tokyoamericanclub.org Discover Tokyo American Club One big worry Tokyo’s busy expats face is ensuring their families have a rewarding day every day. Tokyo American Club is a perfect solution. A stress-relieving oasis and a gateway to Japanese culture since 1928, it’s a home

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away from home for families. It’s also an office away from the office for busy professionals. The Club has something else that sets it apart even more from the city’s slick new condos and fitness centers. Within our walls, people from around the world gather to form a friendly, multicultural community. Our Membership is one-third American and one-third Japanese, with the balance representing more than 50 nationalities. Outfitted for business and leisure, the Club includes four restaurants, a bar, banquet services, meeting and seminar rooms, a fitness center, squash courts and a swimming pool. You can enjoy browsing the 30,000 volumes in our library (Internet access included) and video library. The thriving social and cultural scenes come to life through sports leagues, classes, lectures, domestic and international tours, an art gallery and our Women’s Group activities. The Club also offers a beauty salon, a childcare center, UPS service and more. Please contact the Membership Office by e-mail or phone; banquet room reservations through members.

Serviced Apartments Fraser Place howff Shinjuku, Tokyo Tel: 03-5925-3111, 03-5925-3831 (DID) Fax: 03-5925-3555 E-mail: Kelly.wong@frasershospitality.com http://www.frasershospitality.com Introducing its first Gold-Standard fully-serviced apartments in Japan, Fraser Place opened its East Tower with 175 units on March 1, 2008. The chic & contemporary apartments are fullyequipped and an ideal choice for extended-stay or relocation including business or leisure travelers on short or daily stays. The East Tower highlights a limited inventory of designerstyled apartments including duplex and triplex types. On June 1, 2008, Fraser Place howff Shinjuku, Tokyo opened a further 209 units in its West Tower. With a total inventory of 384 units, Fraser

Place is one of Tokyo’s largest international serviced apartments. Located within easy walking distance of Shinjuku’s business area, it is conveniently located while being away from the main hustle and bustle of Shinjuku’s business district, providing an ideal balance between work and life’s little pleasures for discerning people. A 3-minute walk to Okubo Station and 15 minutes to Shinjuku Station, one of Tokyo’s main transportation hubs, enables quick and easy access. Facilities include a gymnasium, Residents Café/Lounge with daily complimentary continental breakfast and Internet stations for complimentary Internet access. The West Tower offers additional features with a Kids Area and meeting rooms to meet the varying needs of every resident.

Tokyu Stay www.tokyustay.co.jp There are a total of 12 Tokyu Stay properties throughout the Tokyo Metropolitan area— Aoyama Premier, Suidobashi, Gotanda, HigashiGinza, Shibuya Shin-Minamiguchi, Nihombashi, Shimbashi, Shibuya, Yotsuya, Monzen-Nakacho, Meguro-Yutenji and Yoga—thus making it possible to select the location best suited to your own personal needs. All guestrooms are designed for comfort, with a spacious layout. This allows you to enjoy a most pleasant stay in a uniquely cozy atmosphere. Tokyu Stay Aoyama Premier just opened on April 15th. Guests will enjoy a spectacular view of the metropolis below and relax in spacious rooms. This reaches new heights in Aoyama quality-hotel stay. Most rooms are equipped with laundry appliances and kitchenette, and all rooms have high-speed Internet access. Guests staying longer will be given a discount based on the duration of stay (e.g., 1-6 nights, 7-29 nights, and 30 nights or more). Also, we care about the safety of all our guests. Since no one except Tokyu Stay guests can enter the hotel due to our security system, you may rest with ease while lodging with us. We hope you will choose our hotel to experience the ideal comfortable stay.

Be inspired...

OFFICIA celebrates the opening of its brand new business center in the Shiodome Building. Conveniently located in Central Tokyo and built to a unique and unrivaled standard. We offer state-of-the-art serviced offices, conferencing facilities and virtual offices. Whether a single person enterprise, a growing team, or large business looking to optimize flexibility, OFFICIA will provide a serviced office solution tailored to suit your needs.

For more information on this unique opportunity, please contact: CBRE Japan KK. David McKellar - Tel + 81 3 5470 8817 | Taeko Ichioka - Tel + 81 3 5470 8818 Email: officia@cbre.co.jp or visit www.officiajapan.com We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. Governor of Tokyo (2) License No. 79583.

PHOTOS Tony McNicol

Mystic Mountain: Takao-san

t is hard to believe there is actually a 599m-high mountain within Tokyo’s city limits, but Takao-san is just a 50-min train ride from Shinjuku Station. The area got a 3-star rating in last year’s Michelin Guide, and is increasingly popular with both tourists and foreign residents. Where better for an impromptu cool summer escape from the city? Takao-san’s main attraction is hiking — six wellmarked, well-trodden routes lead up to the summit. None are that arduous, and there are numerous vending machines and small shops along the way. (The vending machine operators must have gone to the Mt. Fuji business school: the drinks get more expensive the further up the mountain you get.) There are lots of little diversions such as small temples and shrines, so perhaps Takao-san is suited more to a ramble than a hike. A cable car and a ropeway run halfway up (the former, apparently, the steepest funicular railway in Japan). One sunny weekday in June, the mountain was pretty busy. In the lead were energetic groups of middle-aged hikers. Perfectly kitted out, they looked ready for Annapurna, never mind Takao-san. Meanwhile, some fashionably — and impractically — dressed young girls tottering up the slopes might just have

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got on the wrong train at Omotesando. Takao-san is famous for its wild flowers, and many hikers were exhibiting the zeal of Victorian botanists (albeit with compact cameras for sketchbooks). And everyone was ready with a greeting on the footpaths. You’ll get more konnichiwa in an afternoon on slopes there than in a year along the streets of Tokyo. A short walk from the upper cable car and ropeway station is Yakuouin, a Shingon Buddhist temple said to have been built by Saint Gyoki in 744. The main building looks much like Nikko’s temples, elaborately carved and painted. Shingon is also known as Mikyo, the secret teaching — one of the oldest Buddhist traditions in Japan, esoteric and magical. Statues of Shingon founder Kobo Daishi look over the walking paths here and there. He wears pilgrim’s clothes and a conical hat, and carries a pilgrim’s staff. Kobo Daishi is also the founder of Shikoku’s 88-temple pilgrimage. The real thing is some 1,300km or more in length; but that sounds a bit arduous, so you can complete a shorter version on Takao-san. There are several mini-pilgrimages within the temple grounds. “People don’t have time to do the real 88-temple

By Tony McNicol / Classic Journeys

Several women have gotten into trouble after attempting to reach the summit — in high heels.

pilgrimage, so they do it quickly here,” explained a friendly Takao-san priest to me. Clearly, Shingon is an eminently practical religion. The mini Shikoku pilgrimage consists of 88 small Buddha statues on pedestals marked with the Shikoku temple names. A few rocks from the relevant temple are at the base of each pillar. Pilgrims place a ¥1 coin at the foot of each statue, step on the stones, pray, then move on. But it doesn’t seem many people have trod the pilgrimage lately; the priest had to scrape away dirt from the little glass windows over the rocks. Takao-san is also closely associated with the mysterious mountain religion of Shugendo. A statue of a Yamabushi mountain ascetic stands over the bath for washing your hands, at the temple entrance. The ceremonies and garb here are a hybrid of Shugendo and Shingon. You can get a taste for mountain asceticism yourself on the first Saturday and on the 28th day of each month at Biwa Falls on Takao-san. Anyone is welcome to join the group of Yamabushi meditating under the torrent of water. other notable Takao-san inhabitants are Tengu mountain goblins, among the best known of Japan’s innumerable yokai spirits. Tengu statues are dotted throughout the temple’s precincts and come in two types. one is the Daitengu, red-faced and longnosed. The other is the Shotengu, beaked, greenfaced, and said to be a servant of the Daitengu. Both are winged and favor tall cedar trees for their perch, of which there are many on Takao-san. Tengu are notoriously cunning and vengeful; stories abound of Tengu perpetrating kidnappings and deceptions. Luckily, Tengu mainly target the vainglorious and those who abuse their power. You may want to be careful visiting Takao-san. The mountain’s new-found popularity has had unfortunate side effects. According to the Mainichi newspaper, the number of mishaps on Takao-san has increased with the greater number of hikers. There were about twice as many accidents in 2007 as in previous years. The Yomiuri reports that a 37-year-old man was rescued after trying to ride up the mountain on a bicycle, without drinking water. Another man, dressed in a suit and leather

Takao-san appeals to everyone.

shoes, had to be rescued after starting his climb in the afternoon, and then losing his way when it got dark. Several women have gotten into trouble after attempting to reach the summit — in high heels. Tokyoites tend to underestimate this mountain on their doorstep, it seems. or could there be another explanation? Despite recognition by the Michelin Guide, Takao-san’s pristine environment is now threatened by the Ken-o Expressway, a new Tokyo ring road. As of this writing, a tunnel is being hacked through the bottom of the mountain and a junction built nearby. Perhaps the Tengu are already exacting their revenge? Getting There Takao-san is a 50-min ride from Shinjuku Station, on the Keio Line. Be sure to get off at Takaosanguchi Station, not Takao Station. The mountain is usually packed on weekends and holidays, so a visit on a weekday is recommended. Takao-san

Tony McNicol is a freelance writer based in Tokyo.

TOKYO

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Guide to Business Outside Tokyo | Special Advertising Section by lorem ipsum / lorem ipsum

nternational firms serious about doing business in Japan naturally look toward Tokyo. It’s easy to understand why: most multinational companies are based there; it’s a leading global financial center; it’s Japan’s capital city; and there’s a built-in consumer market of 35 million people living and working the greater metropolitan region. No wonder regional cities — huge by global standards — have a difficult time competing. To be sure, a substantial number of firms have opted to set up operations outside of Tokyo. Companies that are focused on Asia, rather than on the U.S. or European markets, can deal with their overseas clients just as easily from Kansai or Kyushu. Research, engineering and manufacturing firms are taking advantage of tax breaks, infrastructure assistance and business development opportunities offered by local and regional governments. Setting up shop just a few hours away by plane or train from Tokyo can equate to tremendous savings. Despite cost advantages, international companies often need to work harder to build thriving businesses outside of Tokyo. So many of their client firms tend to be located within Tokyo, and constant travel can be quite expensive. Building a sales force and developing channels to and from Tokyo are also harder to do from outside the capital. By far the biggest challenge international companies face outside of Tokyo, however, is finding the talent they need to grow their businesses.

Looking for Talent Outside of Tokyo professionals who have had extensive experience in Tokyo, looking for the chance to return to their hometowns. Others are mid-level employees attracted to the lower cost of living and differences in lifestyle that can be enjoyed in smaller cities. Whatever the reason, it is clear that candidates would be willing to move. Yet, most candidates are not, or have not been, aware of the opportunities available. To some degree, recruiting firms and online job advertising sites are helping to close this information gap. Specialized recruiters only recently have expanded operations into regional cities such as Osaka and Nagoya, and they have been spreading the word about jobs and employment conditions outside of Tokyo. As specialized recruiters learn more about those markets and expand further, candidates in Tokyo and beyond will have better access to regional opportunities, and companies will become aware of the growing talent pool that exists outside of the Kanto plain.

Where is the talent? Skilled professionals go where the most rewarding work is, and where they can develop their careers. Bilingual candidates with international experience, for example, are concentrated in Tokyo, because that’s where most international companies are located. Compound this demographic trend with Japan’s general skills shortage and it’s clear that companies outside of Tokyo are facing a staffing challenge. Staffing difficulties have played a major part in some companies relocating to Tokyo or scaling back their regional operations. For example, several banking and financial services firms, already under pressure because of the subprime crisis in the U.S., slowed or aborted their regional sales’ activities because they were unable to find the sales staff they needed. Instead, they chose to centralize in Tokyo and dispatch salespeople as needed from their head offices.

Seeking alternatives to support growth At the same time, companies are looking for ways to grow their businesses and stay competitive, and may not be willing, or strategically able, to endure a long search for skilled talent, especially for experienced, technically superior professionals. That’s why firms are increasingly looking at alternative employment arrangements, such as hiring contractors, interim managers or project consultants, or even looking outside of Japan for talent. Staffing firms that can provide these solutions will help develop business outside Tokyo and improve Japan’s overall employment landscape. Maintaining a healthy flow of skilled talent between and among Japan’s cities and regions is one way recruiters and employers can assist in Japan’s gradual decentralization process.

Information gap At the same time, a considerable number of candidates are open to employment outside of Tokyo. Some are accomplished

David Price Managing Director, Robert Half Japan

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Guide to Business Outside Tokyo | Special Advertising Section

Business Consulting & Strategy PM-Global K.K. Tel: 03-5159-2151 Fax: 03-5159-2152 www.pm-global.com PM-Global provides business performance solutions and services via four professional services groups: • Program Management Optimization • Governance & Compliance • Business Risk & Continuity Management • Business Performance Management Also, we expand your skills inventories through knowledge-transfer workshops and OJT engagements. Our long-term relationships under servicelevel agreements and fixed-priced fee schedules deliver high-quality, cost-effective and responsive services, while maintaining strict adherence to global management standards, and employing proven process disciplines and performance metrics. Program management has become the core competency for organizations leveraging resources to bring maximum profitability and success across the whole enterprise. Program Managers with enterprise-wide responsibilities must optimize the return from organizational resources: Capital, People, Process and Infrastructure. Reducing risk and creating project success are our consulting services’ focus. We employ proprietary business solutions in operational areas of Business Integration & Improvement, Business Reengineering, Change Management and Business Intelligence. Over five decades of global experience have made us a leading professional services group helping organizations in Japan, China and the U.S. increase profitability and reduce timeto-market. Internationally certified project managers and business specialists provide integrated multilingual and multicultural skills to overcome the challenges of our customers’ emerging global business operations. PM-Global’s offices also include Osaka, Shanghai, Dalian, San Francisco and now Seoul.

Logistics & Supply Chain Management Solutions Daifuku Company, Ltd. Tel: 03-3456-2395 E-mail: terry_wagemann@ha.daifuku.co.jp www.daifuku.com

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Since 1937, Daifuku has become a global leader in the development of automated material-handling solutions for manufacturing, warehousing and distribution, operating in more than 16 countries. Our products range from simple utility carts to complete, fully automated warehouses, DCs, factories and cleanrooms. We provide a Total Solution, not just automated equipment. Total Design—We start by analyzing your total process. We have become a global leader not only by our experience, but also by dedicating ourselves to achieving a complete understanding of manufacturing and distribution logistics. Forming a partnership with our customers through each phase—interviews, analysis, concept, design, installation and operation—a Total Solution is realized. Total Production—Under strict qualitycontrol guidelines, we produce our products incorporating the latest technologies. Faster operation, higher density, improved working environments and greater productivity are your benefits from our commitment to constant improvement. Daifuku’s major production facilities are certified under ISO9001 and ISO14001. Total Support—Our customer commitment continues beyond installation and implementation. Global support and service are essential to delivering a Total Solution. As your needs change, our partnership makes it possible to help you more quickly achieve the results you need for success.

Kintetsu World Express, Inc. (KWE) Tel: 03-3201-2580 Fax: 03-3201-2666 www.kwe.com KWE, a company listed on the First Section of the Tokyo Stock Exchange (Code: 9375, Capital ¥7,216,000,000), is an international freightforwarding and logistics company with an overseas network of 285 business sites covering 187 cities in 30 countries. The KWE group is actively expanding operations under our five regional group-management system that encompasses the regions of Japan, the Americas, Europe and Africa, East Asia and Oceania, and Southeast Asia and the Middle East. KWE, as services ancillary to our freightforwarding operations, also provides logistics that includes temporary warehousing and distribution processing, such as sorting, labeling, packaging and product inspection. KWE, with our comprehensive network of distribution facilities, provides a full range of logistics services, both within Japan and abroad, with 18 of our distribution hubs having obtained TAPA certification.

KWE — by integrating all of our 178 distribution facilities worldwide, representing a 774,895-square-meter global space of warehouses, and through our industryleading IT systems — is committed to providing logistics of the highest quality to satisfy our customers’ needs.

Recruiting Specialists Robert Half International Tokyo: Tel: 03-5219-6633 Fax: 03-5219-6634 E-mail: tokyo@roberthalf.jp Osaka: Tel: 06-4560-5522 Fax: 06-4560-5523 E-mail: osaka@roberthalf.jp www.roberthalf.jp Founded in 1948, Robert Half International (NYSE: RHI) is the world’s first and largest specialized recruitment firm and a member of the S&P 500 Index. RHI is a recognized leader in professional consulting and recruitment services, and is the parent company of Protiviti®, a global independent internal audit and business and technology risk consulting firm. With over 400 locations throughout Asia, Oceania, Europe, North America, South America and the Middle East, our dedication to outstanding service knows no boundaries. Built on a foundation of ethics and a dedication to discretion, we provide expedient solutions to unique and specific recruitment needs. We offer six specialized recruitment resources: • Robert Half Finance & Accounting provides accounting and financial recruitment services at all levels. • Robert Half Financial Services Group is dedicated to the special needs of banking and financial services companies. • Robert Half Management Resources provides financial professionals on an interim project or contract basis. • Robert Half Technology places IT professionals in a wide range of fields, including Web development, systems integration, network security and technical support. • Robert Half Sales & Marketing provides qualified professionals for sales, marketing and advertising positions across all industries. • Robert Half Human Resources provides qualified professionals for human resources roles across all industries.

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Science, Technology and Inventions / By Robert Cameron

he snazzy new mobile phone you just bought may look pretty hot and modern, but to Masaaki Fukumoto, “it’s a dinosaur.” Fukumoto, executive research engineer at NTT DoCoMo Inc.’s Frontier Technologies Research Group, and his team are hard at work on technology for the “next-to-next generation” of mobile devices, a full-time wearable computer interface with hands-free controls for mobile phone, music player, game machine and other portable appliances. “You can already read a bar code or a QR code on an ad with your mobile phone, but you have to take the phone out, switch it to photo mode, take a photo and read the output — and you have to think of doing it,” Fukumoto says. “All this gets in the way of smooth functionality.” Fukumoto is concentrating on a phenomenon known as electrooculography (EOG). “The eyeball has many of the properties of a battery,” Fukumoto says. “There is an electrical potential between the white [sclera] and the pupil, and it can be used to precisely track eye movements. We can detect that potential, amplify it, filter it into vertical and horizontal components, and use it to control things.” EOG is already in use in medicine, for example, to allow paralyzed patients to communicate

62 / ACCJ Journal / August 2008

via electrodes attached around their eyes. NTT’s approach is to build the signal-detection electrodes into a set of headphones, to create what Fukumoto calls a “gaze detector.” The signals from the 10 electrodes — five on each earpiece (two for vertical, two for horizontal, and a ground) — are amplified and fed through a software filter. A computer converts the data into a cursor on the monitor. The system is programmed to respond to the wearer’s eye movements — in a recent demonstration of a music player, for example, a level gaze meant “play”; two right glances meant “next song;” and two left glances indicated “previous.” Rolling the eyes left or right controlled the volume. “Left-right-center” disabled and enabled the function. The demo version also included a pair of cameras, whose field of view was fed to a computer monitor. Red squares on the monitor indicated what in the field of view the wearer’s eyes were directed at, and allowed an additional function — gazing at a two-dimensional QR code instructed the system to read it and output the information — a shopping coupon, a ring tone or a multimedia advertisement, for example. Other applications for the technology could be as a market

Robert Cameron

Eye on the Future

Masaaki Fukumoto: “next-to-next” generation of mobile devices.

research tool, a hands-free controller in a factory, or in automated tour guides at museums. These are the early stages, and clearly there are some bugs to be ironed out. The system is large and unwieldy, and it will need wireless connectivity that can handle the 10mbps data stream from the cameras. But it does work. Fukumoto was cagey on when we might be able to buy such a system incorporated into our keitai denwa, but certainly within 10 years. In its final, marketable form, according to Fukumoto, EOG will doubtless be one of a number of control options incorporated into a wearable device that is as ubiquitous as wristwatches are now.

Robert Cameron is a freelance writer based in Tokyo.

By Nicole Fall / FDI Portfolio

Real Estate Program As investor interest in Japanese property strengthens, America’s oldest real estate organization has introduced a bilingual program in Tokyo that leads to the Certified Commercial Investment Member (CCIM) designation. After a successful debut in April, the next fiveday CCIM program is scheduled for August 21, said Coldwell Banker Affiliates Japan, Inc. spokesperson Natasha Thompson. “Every CCIM faculty member is actively involved in the commercial real estate industry and has received extensive training and education. They are eager to impart their knowledge to assist all the participants to analyze and have a competitive edge in today’s real estate industry.” The requirements to earn the CCIM designation include completing core courses, submitting a portfolio of qualifying experience and passing the Comprehensive Exam. The CCIM curriculum, which is hosted by Coldwell Banker Affiliates Japan,

incorporates financial analysis, market analysis, user decision analysis and investment analysis. The lectures are in English with interpretation, study material and texts in Japanese. Since its inception nearly 40 years ago, more than 9,000 professionals have become CCIM members in North America and some 30 countries. The membership network includes appraisers, property managers, mortgage bankers, lawyers, asset managers, leasing agents, developers, brokers, REIT executives and accountants. “Just as accountants earn the CPA, the Certified Commercial Investment Member (CCIM) designation distinguishes you as an expert in commercial investment real estate,” Thompson said. To apply, e-mail: cbj_edu@coldwellbanker.jp

Cultural Coach Moore Associates, founded in 2004, is a coaching and intercultural consulting business dedicated to assisting companies with the development of leadership talent and the enhancement of their effectiveness in the Asia-Pacific region. Founder Thomas Moore, fluent in Japanese and Chinese, increasingly finds himself on a plane between Shanghai and Tokyo to handle the increasing number of international executives posted in these two cities who

require cultural adaptation to local business practices and leadership training. “We work on development needs, such as communication skills, delegation skills, intercultural skills and people management,” says Moore. A particular area of expertise is in assisting expatriates to work through culture shock in order to build and strengthen multicultural teams. Professional coaching can assume a format of as little as a half-day team course, through to months of

one-on-one sessions. Background in human resources gives him an advantage in the people skills area, according to Moore. Moore Associates also helps family members of executives adjust to living abroad, dealing with issues that include homesickness and acclimating to new perspectives. “My logo is a stone lantern,” he says. “I like this image because it is symbolic of both Asia and a guiding light, which I think captures the essence of my practice.”

August 2008 / ACCJ Journal / 63

Cosmetic Surgery Consultant

As more people turn to cosmetic surgery in Japan to enhance and improve their features, there is an increased need for impartial advice on what procedures and which clinics. Looking to fill the knowledge void on which cosmetic surgeons have U.S. training and are “foreigner friendly” is the

International Medical Aesthetic Information Centre (www.imaic. org). Founder Scott Austin, a Canadian based in Nagoya, has five years of Japan experience in consulting and working directly with plastic surgeons. His Web site and regularly scheduled seminars aim to bring a greater understanding and, ultimately,

empowerment to the public who search for impartial information on which cosmetic surgeons are reliable, rather than just being limited to those who spend the most on advertising. “I want to create more awareness of products in Japan that are FDA approved and where people can find them,” says Austin. “Unfortunately, there are many products that are not approved [in the U.S.] that are readily available in clinics in Japan; and I want patients to make informed decisions about plastic surgery.” Austin has been targeting foreign residents living in Japan, but has also seen a number of Asians outside the country seeking knowledge on available procedures in Japan — a trend, he anticipates, that will continue to intensify.

Preserving History Many books and other paper materials, including significant historic and cultural artifacts, are on the verge of extinction. Fortunately, U.S.-based Preservation Technologies L.P. — a provider of deacidification products and services for libraries, archives and consumers worldwide — is battling latent forces. The company’s patented Bookkeeper® Deacidification Process safely and effectively neutralizes acids in books and documents, greatly extending their lifespan. It now has an Asian arm in Saitama City, a sister city to Pittsburgh, Pennsylvania, where the firm is headquartered. This is the first Asia base for Preservation Technologies, which has already landed

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clients that include national and private libraries, university-related facilities, the Institute of Developing Economies and JETRO. “The goal of deacidification is to keep paper in good condition over a longer time span by ensuring that it contains an appropriate alkaline reserve. Bookkeeper, which is effective for most paper-based materials, deposits the alkaline buffer needed to neutralize destructive acid content and preserve valuable collections,” says Hiroyoshi Okada, president of Preservation Technologies Japan. “Bookkeeper is non-toxic, making it safe for humans and the environment.”

FDI Portfolio

Vuitton’s Biggest Store Louis Vuitton is set to open its largest store in the world, in the Ginza, at the end of 2010. LVJ Group K.K., the company responsible for importing and selling the Louis Vuitton brand in Japan, has announced plans to build what it bills as Asia’s largest Louis Vuitton store. Sources close to the company say the new building will have a total space of about 7,000 square meters, on at least 10 floors — far surpassing the luxury French brand’s current largest store in Paris (about 1,800m2). Louis Vuitton presently has two stores in the Ginza, just a few blocks apart, at the Matsuya Department Store and LV’s original location on uber-posh shopping street Namiki-Dori. Both stores were designed by well-known architect Jun Aoki, who also was responsible for the brand’s standalone flagship store in Omotesando. Out of its 11 stores in Tokyo, the Namiki-Dori location is particularly popular. An estimated 60

employees handle customers buying the brand’s best-selling Monogram bags and accessories, stocks of which are routinely depleted on a daily basis. In March, Louis Vuitton launched with a huge splash its reigning biggest flagship store in Asia, dethroning the Omotesando location.

Diesel Asian Flagship Italian fashion brand Diesel has launched in Tokyo its largest Asia-region flagship store. While the world’s economy falters, the unabated luxury shopping spree in Japan continues, as fashion brands spot the opportunity to build bigger and better flagship stores in Tokyo to service both Japanese and, increasingly, tourists from China and South Korea looking to spend their holiday money. Diesel’s store in the heart of the Ginza boasts three floors, and was described by Diesel President

and Founder Renzo Rosso as “a must” for the luxury denim and casual lifestyle brand. He went on to describe Japan to news agency AFP, at a preview of the store, as “the most important market in the world.” Hollywood actress Mischa Barton was flown in to attend the brand’s launch party at the Conrad Tokyo in nearby Shimbashi, two days before the official store opening on April 23. The store features Diesel’s casual luxury line, Black Gold, in a bid to appeal to a more mature,

wealthier shopper who tends to gravitate toward the Ginza. It is also reaching out to Japan’s increasingly older demographic, who have outgrown trendsetting styles yet still want to look fashionable. Diesel has also expanded into home textiles in Italy, and plans to do the same in Japan.

Contact Nicole Fall at nicole@fivebyfifty.com if you have ideas for this column.

August 2008 / ACCJ Journal / 65

ACCJ’s Longest-serving Member?

he large table in David Wouters’ conference room is neatly stacked with files, reference books and documents, all meticulously organized with differentcolored sticky labels attached. To the untrained eye it is a daunting paperwork mountain; to Wouters and his staff, it is all just part of the twice-yearly update of a book that any company doing business in Japan needs to have in hand. The tome, Employment Practices in Japan, details regulatory changes that affect employment, including workplace conditions, regulations on overtime and latenight working hours, safety in the workplace, contracts, rules of engagement and a myriad other constantly changing legal requirements of which an employer needs to be aware, alongside case studies that demonstrate the rules as they are applied here. Wouters gives a wry smile and admits, “It is a pretty major task.” It is, by no means, the only project that the possibly longestserving member of the American Chamber of Commerce in Japan has ongoing. Wouters was sent to Southeast Asia in 1967 by The Coca-Cola

66 / ACCJ Journal / August 2008

Company as marketing manager. Based in Bangkok, his remit included Singapore, Thailand and Malaysia, as well as Vietnam, Cambodia and Laos during those nations’ years of conflict. He recalls taking DC-6s into Saigon and “hoping there were not too many bullet holes in the wings after we had landed.” Two years later, he was invited to Tokyo to challenge Coca-Cola (Japan) Co., Ltd.’s marketing programs, and served in the office of President Nick Hughes and Masomi Iwamura. Within weeks of arriving in the country, Wouters had signed up as a member of the ACCJ. “There were two secrets to Coke’s success here,” believes Wouters. “The first was our unique style of marketing, our brand identity, cooperative advertising, packaging and the way our message was delivered; the second was the bottlers. “Coke was the first here, we got the best bottlers,” he says. “And anyone who came in after that was only going to end up second best.” With bottlers such as Kirin Beer, Mitsubishi and Mitsui on board, along with their distribution networks, Coca-Cola was in the position of strength that it has maintained to this day. Pepsi may have given Coca-Cola a run for its money in other markets, but the Japanese consumer has, by-and-

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SNAPSHOT

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David Wouters Born: Millburn, New Jersey Married: To Masako Children: Lilian, Kevin, Sharon and Rosalind Hobbies: Squash, golf and swimming

large, stuck by Coca-Cola. In 1976, the soft drinks manufacturer asked Wouters to relocate back to Atlanta and take on the task he had been doing in Japan for seven years. “I really enjoyed working for Coke, but it got to the point where I asked myself if I wanted to take a dare and to do something different in Japan,” he says. “I felt there was more of a challenge here — and I have always got real enjoyment out of doing something that someone has told me that I can’t.” Wouters and Associates Inc. was set up in that same year as a consultancy specializing in human resources and management. Building on the reputation that he had earned at Coca-Cola for building the company and its business here, Wouters brought together foreign companies looking to do business in an expanding market and the Japanese executives that would help them to negotiate the subtleties in doing business here. In 1991, Wouters was invited to join InterSearch Worldwide

By Julian Ryall / Business Profile

“In the years of World War II, there were some great leaders who were able to steady the world situation. I don’t see that today.”

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InterSearch Japan

Limited as a partner handling the Japanese market; presently, it is the fourth-largest executive search and consulting company in the world. As you flick through his handwritten ledgers of names, dates and corporations, it becomes clear that some of the largest names in global business have come to Wouters for assistance. In any given year, Apple, Ford, Merrill Lynch, Audi, owens Corning, Amway, Walt Disney, Nortel and others have approached, looking to him for filling senior management positions. “The secret to this business is having personal relationships with the people involved,” Wouters says, although he adds that the market has undergone drastic changes in the intervening three decades. “When I first started, there were very few retained search firms; now there are plenty of contingency companies that go out and offer their services without a retainer,” he says. “Their fees are based on successfully placing a person with a company.

ACCJ

President: David A. Wouters Employees: Six Established: Japan branch set up in 1991 Location: Roppongi, Tokyo Areas of operation: Human resources and management consulting Major clients: Ford, Merrill Lynch, Citibank, Walt Disney, Mattel, Apple, Northern Telecom, Amway www.intersearchjapan.com d.wouters@intersearchjapan.com

David Wouters (center) greets State of Georgia Governor Jimmy Carter at an ACCJ breakfast event in May 1975 at the start of his campaign for the U.S. presidency.

“That has made the market very competitive,” Wouter says. “And I feel there has been a decline in the quality of the work being done, as there is a need to keep pace with the contingency companies.” one thing that has not changed is that client companies always want the very best candidate — and they want him or her yesterday. In an average year, InterSearch Japan will expect to place as many as 12 fairly senior executives. But this year, Wouters admits, business has been slow. “There is a broad feeling of economic uncertainty; and I do think that one issue that is

worrying is the lack of clear leadership in the world,” he says. “In the years of World War II, there were some great leaders who were able to steady the world situation. I don’t see that today.” The former chairman of the ACCJ’s Employment Practices Committee, the Living in Japan Committee and the Independent Business Committee, Wouters now focuses his energies on the Membership Expansion Committee, and feels confident that the ACCJ will be able to build on the successes it has recently seen in attracting new members. Julian Ryall is the Daily Telegraph’s Tokyo correspondent.

August 2008 / ACCJ Journal / 67

Disaster Reduction and Human Renovation Institution

yohei Furumi had just left his home in Kobe early in the morning of January 17, 1995, when the Great Hanshin Earthquake struck, the most devastating quake to hit Japan since 1923. Measuring 7.3 on the Japanese magnitude scale, the quake struck before dawn, lasted for around 20 seconds and caused the deaths of more than 6,400 people. Furumi spent the following days and weeks helping neighbors and friends who had lost everything, and continues that work to this day at the twin museums that make up The Disaster Reduction and Human Renovation Institution. The Disaster Reduction Museum starts with a searing re-enactment of the earthquake on a wraparound cinema screen. Visitors then walk through a section of the city immediately after the tremor, flickeringly lit by flames, to a longer movie detailing the quake and the subsequent work to rebuild the region. On the third floor, items that were recovered from the shattered city are on display, along with dioramas showing the progress of the reconstruction work. Perhaps the most powerful presentations are those by survivors of the quake, such as Furumi, who share their stories and experiences with visitors. “I woke up to this loud noise and I couldn’t understand what was happening,” said Nobuo Nakai, 69, who helped pull his neighbors from their wrecked homes in the aftermath of the quake. “It was like God was shaking the house. I thought I was going to die.

68 / ACCJ Journal / August 2008

Disaster Reduction and Human Renovation Institution, Kobe

Museum Musings / By Julian Ryall

“In those few seconds, the whole infrastructure of the city was destroyed and we had a lot of very frightening aftershocks as we tried to help other people,” he said. “There were incredible scenes: huge buildings had collapsed; entire neighborhoods were gone; there was no electricity, water or gas. It was like another world. “Nature is truly powerful. Much more powerful than mankind,” he said. The museum also operates disaster-prevention workshops, and has a library and resources room. Across the skywalk is the Human Renovation Museum, which is dedicated to enhancing visitors’ understanding of the preciousness of life and co-existence with nature. A 13-min film called “The Fall of Freddie the Leaf” will appeal to children, as will the stroll through the four seasons of a beech forest, complete with animated woodland creatures. Location: 1-5-2 Wakinohama, Kaigan-dori, Chuo-ku, Kobe City 651-0073. Tel 078 262 5050. http://www.dri. ne.jp/english/index.html Hours: Open between 9:30 and 18:00 from July to September, but closes 30 min earlier at other times of the year. From 9:30 until 19:00 on Fridays and Saturdays. Last admission one hour before closing time. Closed Mondays (or the following Tuesday if Monday is a national holiday), December 31 and January 1. Access: A 10-min walk south from Iwaya Station on the Hanshin Line, or 12 min from the south exit of JR Nada Station. Julian Ryall is the Daily Telegraph’s Tokyo correspondent.

Reviewed by Tom Baker / Behind the Book

Chronicles of My Life: An American in the Heart of Japan by Donald Keene Columbia University Press, 176 page, $27.95

“The first Japanese I ever really knew … all were dead before I met them,” Columbia University Prof. Donald Keene recalls. His lifelong relationship with Japan got off to an uncomfortable start. As a freshly trained U.S. Navy translator during World War II, Keene’s main responsibility was making sense of captured Japanese military documents filled with boring minutiae — but he also read “almost unbearably moving” diaries that had been found on the bodies of dead Japanese soldiers. After the war, Keene established himself as a leading authority on Japanese literature, translating works by writers such as Chikamatsu Monzaemon, Yukio Mishima and Kobo Abe, as well as compiling a major survey anthology and writing his own nonfiction books on the nation’s history and culture. Not only did he, thus, help explain Japan to the West, but Keene also made a name for himself in this country. He has written articles for Japanese literary journals, and was employed by the Asahi Shimbun from 1972 to 1992. His work for the paper was compiled into several Japanese-language books. Keene has written his autobiography, Chronicles of My Life: An

American in the Heart of Japan, that, too, has newspaper connections, having initially appeared as a recent yearlong serial in both the Yomiuri Shimbun (Japanese) and the Daily Yomiuri (English). His writing style in this work is light and conversational, making for a quick, easy and pleasant read. Even so, I sometimes wished Keene had gone into more detail on certain topics. His description of the challenges of translating Chikamatsu, for example, was quite interesting — and more of such material would have been welcomed. The book’s best passages come when Keene allows himself a wry comment, as when he denounces the touristification of Kyoto: “I anticipate with dismay that one day there will be a display of sound and light in the [Ryoanji Temple rock] garden, the stones shifting from purple to orange to the sound of koto music.” But Keene, now in his eighties, does not automatically oppose change, as shown by the inclusion of illustrations by contemporary artist Akira Yamaguchi, who is not yet 40 and was born after most of the events in the book took place. Yamaguchi’s trademark is meticulously drafted color drawings of modern, everyday scenes turned mildly surreal by the inclusion

of antique Japanese details and fanciful bits of machinery. When Keene recalls the horse-drawn milk carts of his New York childhood, for example, Yamaguchi sketches what looks like a horsedrawn yatai food stall, adorned with a white paper lantern in the shape of a milk bottle. When Keene mentions how difficult it is for him to detect the faint scent of Japanese plum blossoms, Yamaguchi shows the bespectacled American confronting a flowering tree with a cartoony, multi-nozzled sniffing device. If Keene has been a rare cross-cultural bridge-builder for the past half-dozen decades, then Yamaguchi is one of the numerous individuals building such bridges in the 21st century.

Tom Baker is a staff writer at The Daily Yomiuri. We are giving away three copies of Chronicles of My Life. Simply e-mail editor@paradigm.co.jp by August 13. Winners will be picked at random. Winners of DigiMarketing: Cindy Mullins, Foreign Correspondents’ Club of Japan, Gunnar Hempel, Robert Walters Japan K.K.

August 2008 / ACCJ Journal / 69

By Samuel H. Kidder / In the Final Analysis

Gen. MacArthur and the ACCJ

ixty years ago, August 1948, our first President, Dennis McAvoy, spent an hour in private conversation with Supreme Commander of the Allies in the Pacific Douglas MacArthur. The purpose of the meeting was to explain to General MacArthur the mission and goals of the newly established ACCJ and to ask for the General’s advice and support prior to the opening of formal Chamber business. Reporting back to the leaders and members, President McAvoy said that he was “pleased to learn that he [General MacArthur] welcomed most enthusiastically the appearance of our organization and extends to it his full approbation and support.” The General noted his positive experience with other Chambers, particularly while in Manila, and emphasized that his door was always open to our organization and that he believed we would be able to give constructive suggestions that would be very helpful to the Occupation authorities. In 2008, when the Chamber is emphasizing the need for America to become even more engaged in the region in the face of increasing Asian economic integration, it is interesting to note that General MacArthur “spoke freely on the subject of Asia as an economic unit.” And he solicited ACCJ support in working in the region to help Japan’s recovery. McAvoy’s recounting of General MacArthur’s comments is quite colorful. “The General feels that some of our members, carrying fat satchels full of facts and figures and blest with a certain amount of eloquence, could visit other Chambers of Commerce such as Manila and Shanghai and help SCAP a great deal through aiding to overcome this resistance to Japanese goods.” Improving the international business environment in Japan remains an important clause in our mission statement. In 1948, General MacArthur felt we could do that by supporting Japanese exporters. It’s a little more complicated in 2008.

Samuel H. Kidder is ACCJ Executive Director.

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