lt
?i
G!IE!.&!
ea
1!&t rs iot to* !...!t l.tt., .!d t!. a.lo..a .p...[ ,or !t...,t.d r.d @!ti r. F.&t.r. oa t!. J.p.!-C.lla.rd. r.rod.tlo! t! Nr8oF, J.F.. A. .luy., I v.h. t.u oglrtd. ll3tlt.ad .ar.. tt.t w. a!.t .yeta @c..r.!, cda,olr.n.nr b.tr..n olr ho coutlt.r .v.r !1.1!i ,.pta... t r.la. i!v..rB.al ata .@!.tttlo! tc, ...r.! rtnr.l r..ou..!, I l.l!.v. rot! r.dv. !â&#x201A;Źltrclp.tton r! .!.h t!@p. .. r!. adrt.ory Co@.tl d ,!p.!-U,S. Ecomhi< R.l.doa. ea th. J.!E-C.U{o&tr r..o.i.rt.a h.. do.. D..L to.!.rr U.S. ofn.t l. to.o.i 1..s., C.r.t!r .rp].Btt.E rttl th. Jrp.!... h b.iL pulltc .!d pilv.t. c!.e.!. etu, l.E .6.! L.l, i. d.v.Lp th. .oop.r.ltr. rplrd.t B.d.d t. a.A!. ar 6nt@l r!t.r..rt in t6.r. .r..r. I
.p9r..r.r. yor! t .pt S D. l!lo6.il o! tit. dtt r. tr:r
P.i..
a!
tLlra.r -4..Li.rt ta lL. P...td.* ,or &a.rud.Bl !6!et. Aanb. Mr.
C. W,
M-
Robl!..a
{ l!h.c.r Co!E.El16r O.. rarlttl Pl.z.
$! fru.lr.!.
C.ltloEL
9,rur
FLPri..:itlop:10/19/ ?2 ..'s: Mes!.8. Flanig.nr HlDto!, Prt../Clton,
r's-
(, I MARCONA CORPORATION
Duins {D Eceht dlscusston tn {ashinsto!,
I
s/a33
ex!&ssed flre
vie{ thet t]1eie {ere as seas of confxontatton rhich :6urc dew€I.! rith Jelan ovea t]ja coh1ng dccade. Altnouel the curcnt
tht6 declinins over the next fsr yBars as a Il&tver, thele ae stuce of lrrttatton bet e
ffi
evoidns vhich 'ibattteeroundst befole 1980: neE tssues
I Dticilate vill
develop tnto naior
.. The JalaeBe xi11 nNe essressirelyj dlloJtne anit eqnit inveshenl3 tl:eir sul)tus l1]eJ {i11 do this sadtibg nole throueh@t the rc{d. eene!@s lendins teme e.i eccelti.s a r6e? nte of retun on equiw jnresr2r€nt D woJS which , l have a Be'1ous i@act on !. s. and Eu@eo financia.r md conr*clat tnte!€ste. r'hiE r-1I1 cxeate diff:cult !.oblms ,or @r cotlanieo sd narls o?elatins ahload aDit nanr ea€n create Eei@B difficuliies i, ou! @ d@estic e.oDoqr! if tne Japoege !1ay W the b. As the !, s. b,"c@es increesinzry defictent ir mtuIal lesuces--!etldla!1t' enelcy rcs@ce5--there dl-1 ie d expandi.€ cchfli.t xith ,_ap$ese dtlcilate urat re stll fa.e lddl.uIar.ly 3edor3 probfotrs 1n M effo*s ir obtain iEressins murries of oi] and €6s Sertds lrot1fts a1ll aeye1o! ir Soih of these lake ea?lv stels lre"ttrrne co 'rortoticn t]]rrah dlticitaiiie tx8 isses ed dcre1+ixg coo!.Etive ar]t@ch altt
'
sre! of Jaldesd assoctatid :eciing in lraeoJa. ir
tne
,Japane3e lrolld deas
urese n.v
I
leaderg ot rnc Jalo-ca1i,.ornia disclssed txe cxercine stn.tuc cted the dereloDnent of her econmtc srdt}.
since]e1y,
('1...
(
1,11e
Jar:r-caliloni.r xs:ociriio. :.:ietlnt I*oya, Jnl,ar selieli!.r 23, ).t72
tJ,1}l\1J-U,s.
lllruTlollJlilm IN OII 1170,, ! \r)i.h ha. bc.r djsirinuted to atl mrticlrarls tn adldrcc. I would liltc to clat.rate
!r?cr
t]]aae tn tlre J.!a.ese
rirnclural c).ng.s tuLins i:race haae a ,!nd.):enial jhlacr on
on ny baslc
u.s.-Ja!d rcletionslrirs i, the tutu.. rher. is in tle Bocial scicn.es mch the sue prlnci?le of ln.*ia 1. tlE lhysical sct.nccs. Io4es orce eet ii notlol continu. .t
Ure
6de s!3ed uii in tle see directton, unlcss act.d ulon by coDto.
forcer.
This phendenon has b€€n aploeni
ir oD lerceltions
leAardile
iI€ ftlue
.ourse of tlre Ja1)mese econow drich h.ve .onttNed as a
Drojection
ol tne
facts,
r96o,s.
There has )cen
llttIe
iecogltt::oD
ts reflcctcd in the wr,t that tne exoqlne st?ensth of ihe doh.sitc o.on5ry of Jale is self-leirforcina ard vi)I Thie perceptton Ga!
contimc at ar a.celeral:tne !ace.
thts njs.oncc)'tion vas I)erlErs nost d,turatized and .e!tat!1y test Dublicized by the V.S. futuroloelstJ licn0an Elrerging Ja?&e3.
xalr, ir })is boot llre
snperslltc: cha11enlc and Reslo.se.
lEs pibri3led.,r.ly in
1.970
I inrediote:x slole oui sllonglJ dn
jclu ssainst trc viev6 hc c)Tr.rsed. r did so not o)ny l)ccals.r r tlrorsli txesc viers lcre Do.g, [nt n.rc irp.rls!,,1y I felr th.t txcy verc l]oilg to rre cxtrDye]y laIJu1 r. futuc Jar!n-u,s. lelalrJoristrils. lDbl
In
Japan
nemd
of
Kahn
{as Fanctillcd
because he s.cn
ii to recoriir-
.rhe
lotictes and..couasc 1rr. J:ilanesc to.otriiruc lJheir drive ror e1otal status on.a. eco.onic basis. Ie offcred EAssruelce of the hlne or a !ota1 dedjcation to this n.tio.al carse th d!fte of thc najor lerloEl sacrtric€r jnvolved. This rcs!.Ilcd tn a costly dcl.y tn soundness
Japanrs
the necessary reanlraisal. and rcdircctioDing of Jalo,s socio-c..r.ntc
lolictcs to hamorlze -lth rhe ID the united states
rea1
sd tn t]re
clea&a m i@se
rbrtd d tr is !o,
rrrD.orea. comuniq,,
evo1vtno.
}Iemd rahn's
book
ooliath ctridine acloss our lahds loayiiE
of conc€r! aDd faar rhicn ras r,raDslataA into a nev dd serious !o1ttl(a1 tlnst, It encruaged thc d€velolDert of liot.ctionisn lot onlJ in thc United States bni
i! the rxroled cmuni!. a! welt.
nhereas neman (anD vas
these vjdrs,
san.tiftad tn
Jepan
I m confident that urrinat.ly
,he! he filst elAless.d tre
vil1be
seen
x@ 1ct's look at the fects taleD !1ace stnce
- trre ijportot deyelolsents llich nare thc nid-aDis - vlich xit1 ccrrainly inth.-nce Ure
future couse of Jalanis econonlc developnent:
ts a sroii.s labor stort.se vljch li1f, Ie accentlat€d ty tl,e tncraiiha dcrdd for :ho*er
There
in r.oler
-3-
v.rk
2.
lrours ata a
snorte \$!l.ieel..
oi eii]y acquirec tecbr.I.5 {htclr '!ve $e!t, olrr Jtrlnn durins tle ,O's ad 60'. ir reccdln6 raridlY. nDtlre? !rolr.s3 lD this area Elr "r' .losely para1l.l t\c rote of riccl..loeical i&ac. t,
The
tid&l
the l,'.s. and in tlr. Ibopea! Corn.ltv.
1. t rapid dcicrtoEtion 1n eNtroroientat corditions ls a fact. It is .rso a tact ihat ftc puhlic h* necoEe acalclY arare of lo1luttc! ud its co3ts in r-cms of besltlt ard !er6ora1 discdfort.
!. ftere rs a sreat need for dcc.lcrltine investlent tn soclal tnf}astncture. Tl]e llblic hae mt odv leco|:nttca tlis tut vjll denan{l jncr€asins €brhasis o, the cons-lrdcator or hads, sclroo1s, recreatiolxl Ia.llltieB, etc. ,. In botlr tlre U.S. dd i! tlre itr.re.n Comuhitv it is !rctectionift ts tn the saadle od txere v1lr r. jn''.asi's r':ls!dc. o .p& 3 Do es.j a aprarent txal
6.
Jaran lras
Featly i.crcased tts forciEh
exchane€ balance
$16}tllior end sttll S"ovirs, tt ts not o,lv to thc eorernrctrt a budch }nt a ?, Thele is increasths recozaition of @ n,lcn'rtns volfadd. enera!/ crisis vlich rill lrave u esleclnllv sie.iftc.rt thpact on Jalen, n€ futue sxortase of eneaev - lsrticddrly j! lN su1fiLr foms - vjll r€strl.t rlc rate of dd at
ovc!
J.lanesc tndustrisr erd"'ih.
-l!
I telicvc tlat e)} of ns e..elt thc.e rr dcvclopicfts tnat ldU 'i11 lrEve sdo iryact o! tt! i\turc relario.slri}e rreirccn J3ia. md flr. 0.s, mat ore tle conseqnel.cs thot c$ bc arti.i!a1,.r1 i! llte irjrcn).dtaro
1.
rtlst dd
ledral]s noat hasicr
lubIle ettitnd€s v,ith.a refer to a3 ripcollcii
I anttctletc
I s.! r rulia c]]aije in
er.oqinil dirc.c.: rrelr:een
rhat r
"in(lu.tly', inierc.ts.
rcatrring tn rxo coresjon tlrnt las hla LoS.'h.- ,h" ,e-!o, 1'-...'' maic,r oI 1.. 1tr.. ., -or .., a
oi daaic.Jlo! dni of th. vi[tuLness to ra]re persoEl 8lcliti.es lor mtioDal ccor.mlc €;di4tr goels nessued in quantit:tili teme. Thi.:iu en.ouace a s@}-scarchins tor n.v vcluor, r.Ile4t!.c jn d irpo.rant vey older cdtural !Elu.s, $iq. ,tU be a srorirs ill.Iest of the
in
senre
loruras ro! enrutis lroxress iD qu"lttattve instead of qrahiitativ€ tehs as tu re rasi t enLy yeEs. netr
This
rill nrhA a lolarizatr:o! of attitudes wittr a g$(inA
.onfroDtalion bct!..n vartous eiouls
(e) ftere tiiu
be
rithin
u ex-idsiJ..f .olftrcls
u)e Jaldese
trer'eer t&bo!
sd naasen.nt vith ln4.e.si.g lressuc ror sbort.r hours and rietl.l !rV. lrc !r11 Fee a le.scnJhE of rh. iiiantificaticn ol 1,lr3 i.rr:.r ril,h Llr..orn:rrris over.]l comorcia! .nd flnr.lar
G.e.ls.
-r-
(b) flrc inc+ic.t to (ro?
ir, JlrlD !i11 contid:e
an.l ]Jecoie
mre
ahcrd shost 2r rilrion }corl. ars..iarr,r vj+) consw3r cr.ups ilnct n:vc d.r.Ior\:,i rra,rtly. T.e lublic vi11 t n( lrcssarc .r Fi.in3 plicies ixd qnelity
slsndards
.har{.r in t}u tnaftional md inef?icient .bf,:r.1s ol di.rrinniion.
I erovi.s entlusiaei
foa co.) cratiye! !111
tcl!
.ccc1â&#x201A;Źrate tnis trend.
(c)
,i11 te a eio tDg .onftontatto! Ietnren the public ana inaustry oler p.rlrl1on st:r&.ds. Lcst.laThere
tion !it1 hecdie nore rcsiriciir= vit! court3 ararding
ircre$ir;slv eerro!. coioeDs.ii.x to idjvt.rrd.s rlr. have oulftred !hyst..l ddaea d txe Esnrt of
I}ds ,o1diz6i!oD of airtituiLcs
dtl@ for
riU .!.:ate a seltous
the Jeloese sovcrnhent. Ilorev.r, as tn elerT
tnny denocmtic soctety, the Aolernient of JaFn will
rlrr-'
J 'o.' 'I ,,'ri'!!o 1c' j. e1s'e.
tlrc.iy o. trrr n ycero ego vte, the hesd or Ccneral l{.tos assued d inlolt&t lo:llioh tr Dur eorermentJ he stated that - 1Et tr
eood
lor c.Deral liol.or:
to hi,, .re t. md.{o.Dis g.n.r;t11l that thc Dnblic ,a. lot ir accord, T srar.s! tI.t this .are
-6-
reacttor !j11 lreval1 th Jata du ihrt uris
dcca{te.
In iderl,ilYins xttx txe !co?1.,
to tndurtry,
urâ&#x201A;Ź eoYerrienl,
(,
ol
Jnlen
as ol}og.d
rtr.l:
irrc iss.essircly in Eo.ecurj,,g
r,rdc
industries
contind.c to ]]o1Iate txe :thoslhere. .r?an'led sociar intuastluctuN.
(c)
ovcr d lerloa of ih" 'o, '" "1'
tire tle
cowermcnt
will atsorl
iility) xhtch is nov none Iy tndintduar cohpdl.s. (d) It trLe see the the eover ent 'iu. reilce tle to provlde coryorcte fjral.hg on a mie ltlleral
ba.i! the
3. Hd ri1]
vo.d d be
losslue in
t]1e U.S.
or nuro?ea
indnstry Lea.t to the.e cbarges in attitu{ies
soyerment
and
lollcjes? I anticilzte that
to{dds trre eencrally accâ&#x201A;Źpted .tod3rds and obJe.dlvcs of the business comrntttes of the U.s. ed ure E\Jropean C@tru
(a)
jty:
- return or investn nt - or RoI and lrolit ns.sins vill tecone not or].v bclite! ujer6to6d but acc.ltcd i, Jopa.cse blriless I)}.ctjccs.
The eares3ions
(Trrc
r$xr.en 1ai, drodtjre.l
c.r).ie in Uris confcrcnce
-7-
tu hcara oi tle djl.Ma lnrlclr d Jalanese orrcn &lfi1i.t. ts lo-tr f:ctrg j! its u.s. o!.ratio:)t, Tl,c
wlrcn
Ilolit rarsin :is ]]jeh.nousn tn relation to txc saF ,dustry tn J.rrn that ure ro:fj.r ls ]cing coi,.na.d lry ]]is .Dlerlors, tet so :.o!r ny U,s, Btordads tlut U.S. Ud authorities are cotrvth.ed that lilse lrofjts ee
(i)
nâ&#x201A;ŹtDE c.rcealcd).
vilLr lorrt inc?cssin.ry to the
,aarrs
lnsle.d of to tnc sovexDicnt ror tncjr ldan prot.ction. InevtNab)y t :!o x:i1I l.ea.l to a reducrion in bor&xea 80/20
,atlo iodor.
.r.a
(.) v,j.h, \a,e.
p
ofrr mlrq:nc rs
De .'o@rE- lh pr..ir'/ coa., .nc, loliciei. flre rcdnction ih ftxcd loan reLjlencnt oblicettons) cohnlDed lttx goverhnert dbsorptioD of the rcspon-
s$ ity for
so.ia-l
oecuritr, tl1 lesser ine necessity
for raintainine sales volMc 1! tines of dccrini.s dmMd. fhereforc lriclng
(d) mrs
clanse in
{ll1 }e
lricilg ioucy vil1
leduc. the !.cssue
to "exlort'r darcsilc rec.ssj.ons. Inis
has 1]ceh
d n@.rtet
tne d.tarioratlon tn Ja!.n-!.g. acononlc
rclatiors dlrins tlre last
lbls }iotnt I rcnId lilr.
few
years. a
To d,rhsstre
nondt 1o dts.uss
-8thc clrcu's1,erccs rhichr
o- /.q .'r _, or r._' a s.rionJ Janan
doi..ttc
rcccssron
in 131. 19?a/.ar1y
1971
udertooh to e}?ort ihis rec.s.ion Urronsh @
sssressiwe
exlort thn$l into tle U,S. ralket, jncludtha
!!ice ,edlctions. unfo ,u3d.1y the u.s.
it" ."" **""r*
a'.
rhlt tine &d
nas cyroric.cina
conrrar.rr
ro ra!.ncae
s..elallJ nrintatrtq @! price3 t, the fa.e of ftdnced this, of c@rse, su!!.lted J:,!al's er:ort 10 solvc tt.s ov, prcbloi. Hox-
lolicy
ye vere
erer, 1t becme a}ldrent as c@Idr't
dea.l
1971 proaresscdr
t]]ai rc si@1y
vtth 6u oD recession od dieest t]]e
Jal)enese
flrls mc a rey f&tor vhich lrolsht of ou eovernicnt to alpry a 1oi iu:gax ' oD "U ijlor- 6, vh:.h vas arnou,.d or A.B sr ,.
I d conftdent that the adjn6tnent6 ir !!orr! o l. t'!es
tusineEs 1)olicles an4
.ralaesc relatioE with both tlrc u.S. da UE Over a perio.t
of eencrarly
hao,.d cmutty.
o, tjie txls rilr eliriiatâ&#x201A;Ź
accepted s'lardalns
of retu
on
tnreshent tx
i! Japo, FrrUrem..cj tl, $itl ,rovide .! inlloved b3i3 countLi.s ia tlre ftturo.
Jor
-9-
4,
Nidx theso crra!:e. in attiind.s no.tjtylne lrir.rlcics oi both goverm6nt .!d inaustryj r a;ttcir):Ld. Hr: rortcvine
o!,,31- !na.;,
(a)
nre.e vrl1 te a elor:ine ot rndus1ri.,l
lro1i] cllecrine a ,edtrcctio.i.s or Jald.so iiresblrt vith an erNal Ererur Dte l'ox tre balsace ol $1. ar.de in
trte ra.ec or r?oD 6 to 8{.
(b)
hoductron cosis
!1111 :increas.
nor o!1y rh rbsointe
tehs tlt also tn relotion to lraauc .tr c.sts iD tIe U,'s. .nd Iu&!3o CoNnity, Tbe odEtlgc r:lrt Jalc
!a!id tndustri.l Gr&nsior lr.vld1hE of scale vtII nccone GUtively l.ss
has erTerierced r'ron
tlre ecoronics
as aaTdsion s14s
tr
vi11 be nore ditftclar
to a!!ly the n*est [cch.o1oAr,
Es feci].iiJa.rer1 ty tlre ac..Ierati.e urorih cuk of tiâ&#x201A;Ź recent 1r:1.rr
Iator costs fill es.arqte ,ot onl.y as a resulr of liBlrg,aee rates, f,Itch shoul d coDlisra ar a rewel of aD!.ox stely lrrl !,ei year, but also as a redlli of tost prod'lction lton lat.r cotifl,ici:s. I .itici])at. r.re ftequent aha 1orye! vorr st.lrasc! ih t]je
niile!
rij.ljtr
tlr sianiric.nt lllaci rn !roCr.ti., cosLs vhlcl ts -..-.i': :. o'oP." '.'c
tnc4.rjrrr-1y stri.xcrt r,olhiton co!t!ol. jLrnd.rdj
{i[ G)
also .ontrihut. to
Jr.r.as..i
odr..Lton co:ts.
" r.s,.lt of the rn.r..sed costsr .ra!.n,s c.j}rcittive advanliese dth ure reit o, t!]e (orld vill gratua.r\ decllae. l'lris vul re{l&e the ratc of ea?oli sr.rLh tendins to brbc it irto llne xtitr rhe ,axj,iLr dicestilrc rate l! tle lj.s. and [uopcar cdo,Ditr. Ths, siyer tthe for tlcso adjnchrents r r6rad alttct ate th.t the .{s
qucstion of trade b.lance
vi1l !c..]e lnlort@ce lry txa €nd of thts ac.o.le.
one
of s..ondarv
!t thc cffect of these r:'ic choges h Jalu on the donesttc flont, Let's tur nov to lite exterml erdr-th of Ja1)orrs ecorortc strengll, rrricl! I see as rhe rcst st8ntt-
ve halc loorrcd
tcmt ne, ttrtust of the ?ois.
It
that
lolittcrl !o{o alrrys cees out of a p bauel, I m convtnced itEr J.Idr {i1f so.}ontr {qy in thts d€cade to shatLer this,n,rh. Ja-idis tnflnence - bodx econmic ad lolitical - vil1 gro. eubA tn1s d€cade tr a fom inclearjDcly urti1alierat ed .Le tnaele.dent of U.S. lolftic.I tnfhcnce. Ue nust Ie prelarcd for a series or ld.i:a !,snocks!, iD the hdnths and yeD:s alrcait rcfI€cttng flds stirtt of indclcndeicc. This xilt ihcrud. a raltd irore to est.btish a Der. rclattonstri! {iih china Eocrilictng Tzi}En i! tlc Eocoss. Iactors lhich rill tnis exterhal izirs .r aas
,.Jao
Tse-luhe wno etated
Jalan's econonic Rornl tnclrnt.
r
-11-
(o)
A vclxr ni;rh
^1in.!dr
alr sroijns forcisn rrcla.x. tala.ce,
J.r,.n
h2s
tn.rc Is litlr.c queitior rLlt nrnt
thls rtll. c.ntrhtrc towords i.
10 .y.!ahd
ftor
oaer $16
til1nr icd..r
biujon :r.cve1, Ja!.h rill ,,o\'. Larressively to cour.L rhis lres r. by scc.,lcratinz lorcifil $20
invcstrc.ts dtlr.ra.tjc\1ax air,a3is o, tne deyclo!:na ,otions of a.d lattD
tle P..ifjc! t)rchdix; bolx s
Africa.
(b) I rccoerllron of so i.s endrona.rtal !rcr1en. vilr. encora{c tne ure deveroling ?orld. It ts a-1so 3+,rercrt thrt witl trre sroli.s labor Elorta(e Jr?anese
i.dlstry
hos .hrl ,111 coittnue
to rove
pdtt@lMlY t solrrrre.st Asia. (c) rapd recoenizes thc realil,r ot slo,tne potecttontsm od vill seeh to esteblisrr nautactutus olelations in the acvelortnc mrld for nore erfective lenetration ot
(d) ,oth tlre u.s. &a Japd ere rreconi.s acntcrr a?s?e of tlc irDcndine erelAl crl.ls vntcl vi11 reacll sertous prolorti.ns rry t]]e
end
of this dec.de. To a}lleciate
flE srsYitJ of uris !&])I thc !.s. tr vcqr ralldry icconinz a irlrer notir notion i, ni.er.l ed 1n relarton to uu! .sc.-1.itns l.riDirc!::.r]js.
-\2-
tc tedicul.rly criitcal jn t]]c.!orai, ljcld l.xo.c ro.rzy tI. 1,,s. n:aorts allto]: .t.lJ thc aaic dlout of encrcJ tn tl.. forn of oi1 .nd cas ai d... JaFtr. IJo{er.r, rry }98t tt ls csttri.Lcil that fte U,s. jr!.It requixeicnis \'111 h...,e inc?cese.t ftve tnEs oner This
v
1
tnc cure.l, lcvel as ctrt?Ercd \dth a dor}Itig ol Jalri
rqu:ildicnts. lbt.r u.s. ctuac oir i{aort$ afoE arc estir.t.d at t3o rrirljon !c, rc.r ry lrot, dr.uii.e oit a, tlr,oo ler t.rr"!1 vitl1 tho lrotarr ity o, a 3tgriric.:nrly l$shcr rdce bY '!hlt datc. 0{a
ta1\ ariolt u.s. }a-ldcc 6f p6JDelts }tublens today,
tut
these
de Dot]]ilc coi!oe.1 fith UDse {irr 'c er1)erieDcc t. trre years ahead). (e) I antlcbate o exr.nston or Je!o-U.s. cooler.rton in lrivJti^ thrsdn nt in tle dc\e1oFt4 vorfd. ftris coo!c"atton ts .sscntial tf re de to edeEte the torces of irattonal mttonalis, vhich are er?andine so ml)idly
It
tlat ve seek ,!Js ol cooperaii.c in tlr. itcre:lolncnt of all lesources, bnt lrharilJ ercra. acaou.ces siren tlc !rcrraril y of sL ove$fl e1oh,tr sno.trgc w ,re erd ttuoudoul, tha r;or1d.
It ts lor this
vt11 arso be essâ&#x201A;ŹDti.f
th.t I sntrport ur. conceF of iojn! !,B.-Jard prcjects in s .ria ror the dcvclopimr of oi1 rcaso,
a.d sas. Ile nurt cohttDlc to s.ck,oi.! of ].rDonutne our int.rcats tn thjs field ns, certainty
Iy txc cari or
-13-
.rr.rttior tor mroiuccs xili. !).c a lotertirl tlr.rrt 1,o tu rclatlorslrirs ilich isr c)re..ts dI. rjrJliir of our !r.!.Dri tdl.rce of ,"raiLc issl!. this
decane, the
I lavc [atked atdt sone rraric c)r.n3e. vhlcx T erltj.tlate itu.ilg t c l97or3 xith rcser.i to !lt)1:c attltades dd tlr€ eov€Dliert a.a hnu.try rcacli.n to thcse cl,ensca. I llal,a s.ljo nmisiz.d ]:{r conci$io.s \riln reJ2rd to tl'! effect u'at lixts rdll rrarre on ovenll denclopont of Jald/ s donestic thonsh
l
€coaor.v
.ee tlrelc
ald crJernll ecor.Dic
tntrhcdi.t.
and
ero
lo.cc. {iem
r.
c}raGeo as )rcCerattnS
'r I 'arl.'1 +o st-.'. ou present tmde jlDa1arce. Tnts rea.lEd li3 ttlllon ttr rc!&'s iavor in 19?I ara certain\y will .llloach $\ biitloD durin6 the mrreLi y.ar. rtxe ee to roresiJl tle f.lces the rorc nmediete crtsis crcated ltr
of lr.te.iioris th the U.s. 1nerc N3t te norc evtdere of Jape!6 .olccrn ald hef rlllingn.ss to ]-ake acti.r ro.ednce tlir rr."de jrbald.c orr xho lear tem. In n{. vier) actI.n ts called t@ o! three I}onts:
(a)
TIre
ye, rs clcsly ud..vahca
1n
felation ro tle dou.r
frth.? rcvalultjon vorld noL h"jnE jrnediate adjutlients, it lrdld be e ?ort t step !n evjdenc-
and elilrousx e
trade
ilg Jald,s rccosdtio, oi r,lts fact rnit lrer viUi,.Bre.s t6 cooperotc. I antictl.Lc s rers]uar-ioi t. er,dt 2eo:{cn to the ao1lar, slrich rctreeclts a 10, r€dlctjo, tlon the ?.csenr o{ficial rate of 3c8, or a ?:{ rednctior lyda +-ne a.tlat ,.ie
of
301,10
ona
.f 'v
in i,lc rurcna ,!r]rel. Jararcse l].J.nits refcrr.d to ihe
:Litrr
als.rsii,ns
-II]-
to tak. ,lac. in l,Ia:rri l:t.n of ihe Jer.
ne):r:
ve.t
as
Jlrl.s
rD.!l
rl
ttr. dis.!srjo).
lee
a at 1,lrc l,rt he.trr6i ,orcvcr,
l,toD
or'l,xts riettor, bnt Uris tiqe rdth lressurc larceiy fton
I
do
t}]e nur.ire..! Ccmurt'ly rathcr tl,a! tlrc
final ..txci3 tt
n!11 be thc ,rcssmcs
drlicilatc coxid.ra-
U.s, norercr, i,
tlre
vithin J!!ar xlrich
d1I detclilnc this actton, It is incon.etvatte to nâ&#x201A;Ź tlret the Jalalese Eovern:ent can contlhe to Nrcrrssc d.ue6 .t tte i.ereI oi $ro to $ro hitj lon ler dsy 1o sull)ort the d.llar at thc floor level of 301.10 vhich bas teetr tla case ower the last fev nonths. Seconaly, li aplears to acl&ys
tn
,e that thcrc is
Grovins concerD iD J@an over the i.resrtrrent and tFde deoteions ftsulrhc f.d d iifeari,
e
th.t f,ear of +his aciio, ts n&. daagire Ltr$ txe aciioh trsclt @d tlrat !]tjhotety this attttnaLe d1l lreaail vtthln JaId. (b) rn enoi :o , I ura! th. ,.d1n ^L "r"r" b. st-r o !ro,rd! of
a yen ra1.elnai,ion. 1
conyinced
for "nqrkct }ile!."ltzadiolii in Jarm, a lnrase vlrich encoDlasses thc cohcepi of lroth investnent ad tada. iliercsts cs pdttcilate ii ine Jeldese .cDnd(/, bchdtbE i'provcd clonels of djstailartton, tn Ure suic mJ es tlE Ja!.ne3e can Frttctpade
in tlr. U,s, naht, ve a"e goirg to
foce even nore serims rroble,is rrith tlre
(c) rrrirdrr,
sit!.tjon jn J..rrni3
lrotectlonj.t
coula r,c t.rrovcd
crDo.t,
dfjve,
:ln
tlris
forces
_15_
..t str0f.'tin3
rcJtriciion:, althondl vhicn ror:c srels jn tnis dire.rion.
lLE-!1i.. d_u.la dcv€lop
lilat I ar lqrcsti.: i. a viiinrlsv..r o, .rltficel tar: .rd fjl.nclnx inc.,tircs irlicl crc.urj:e a hcr aErrdrsi..,e er?ort U.S..mnd{r
I
how se€l.irg 1egt3:laiivs
have o?resscd bJ vievs nr a caDdia riay
!ftte.lion.
tn tte slirft of frank.ess
vlrich ctrar.ct.rizes our Jalm-Califo$ta lssociation neciinas. I lccogntze tlrat thesc rre not altoc.Ger pre.sirs
t.
ou! Jard€se ftiends.
I rc r't "r"o'-JJ "b'ut tr.r j.-oriJr or :j! o..d u 1.!' stoding of .or- mtnal ?rotlers) vhlch cd onlv cone e,rolt flDdetr nn honest ud olen €xcha;ee of vicvs, \rtthdtr Uis urdersr@di.s vc vil} never hd-nofize ou rrl,ual ccoloii. lron1ers! rr,io, I consider essenttal ror naintatnihx ! leacelul rc)1d cormnil,', a caue to cn I Inon xe ue all dcdicated. I ho?a,-@ wiU .ccelt qr presdtation in inat l.igIt. H@ev.r!