Tuesday, June 27, 2000

ARTICLES:

(1) New Administration to be tested with a myriad of challenges, ranging from economic recovery to fiscal reconstruction, with the G-8 Summit coming next month

YOMIURI (Page 2) (Full)

June 26, 2000

Prime Minister Mori will remain in office now that the results of the lower-house elections have settled. But his administration now must face a number of difficult domestic and foreign issues. It must mull such issues as: how to reconstruct the nation’s tattered fiscal condition, while leading the economy to a solid recovery; what diplomatic approach to take as the situation on the Korean Peninsula and the rest of Northeast Asia greatly changes; and how to make the upcoming G-8 Summit in Okinawa a success.

Among these challenges, stimulating the economy, an issue of utmost concern for the people, is deemed as the highest priority item for the new administration.

The nation’s gross domestic product (GDP) growth rate turned positive in fiscal 1999 for the first time in three years. But the economy has yet to return to a self-sustaining recovery track. The new government intends to steadily implement budgetary allocations for fiscal 2000 and to tap a reserve fund of 500 billion yen for public works projects at an early date. During the election campaign, the Prime Minister indicated his willingness to compile a supplementary budget. By disbursing more government funds, he wants to make sure the economy, which has already bottomed out, is on a solid recovery track.

At the same time, the new administration must also deal with the enormous fiscal deficit of 645 trillion yen held by the central and local governments. It will be pressed to present a specific direction for fiscal reconstruction.

The Prime Minister stated during the campaign, “The Government is determined to bring the growth rate of GDP to the 2 percent level in fiscal 2001 and then to set about the fiscal reconstruction process.” Though he reiterated that “priority will be given to economic stimulus measures for the time being,” he stopped short of presenting any reconstruction prescription.

Many officials hold the view that in order to redress the nation’s finances, a consumption tax hike, in addition to effective implementation of public works projects, will be indispensable, as called for by opposition parties. The Prime Minister will be required to significantly display his leadership in order to bring about such a tax hike.

Reforming the nation’s social security system, as well, is the task the government must tackle immediately.

Social security spending has skyrocketed as a result of the declining birth rate, coupled with the rapid graying of the population, when the nation entered a low economic grow era. This is threatening to upset the social security system, which includes pensions, medical services, and nursing.

The coalition government, centered around the Liberal Democratic Party, has repeatedly deferred its policy of “boldly reforming the social security system” since the mid 1990’s, having met opposition from interest groups. The new government will have to make utmost efforts to dissolve public anxiety about the system by presenting a vision for the future.

Reflecting such recent social problems as “classroom disruption” [by unruly children] and an increasing number of violent crimes committed by juveniles, the government has been urged dramatic reform of the educational system and an amendment of the Juvenile Law. The Police Reform Council will finalize in early July its proposals to reform the police system in response to the recent series of scandals involving the police. It is necessary for the government to implement the reform proposals so that public distrust in police will be erased.

In the foreign policy and national security areas, the July Okinawa Summit is the most important event on the current agenda. The diplomatic skills of the Prime Minister of the host nation will be put to the test.

Moreover, Japan is under pressure to resolve such pending issues with the United States as host nation support for U.S. military bases and the lowering of NTT access charges. In relations with Russia, the issue of concluding a peace treaty has entered a crucial period, with the end of this year being the time limit for the negotiations.

With the summit meeting between South and North Korea, more attention will be paid to what role Japan will play to help stabilize the Korean Peninsula. The immediate challenge is how the government should promote its own normalization talks with North Korea, while continuing to take joint steps with the U.S. and the Republic of Korea.

The focus of attention is also on policy measures tossed out in succession by the Prime Minister during the election campaign. The measures included: (1) transfer of certain central government-affiliated offices to the regions; (2) establishment of a minister for information technology (IT); and (3) introduction of a system of starting the new school term in the fall.

A senior official at the Ministry of Health and Welfare call these measures “lip service just for the election” because they suddenly cropped up without any discussion first conducted in the government. But because the Prime Minister’s words are deemed significant, public attention will likely be focused on whether he will be able to implement the policy measures he promoted.

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(2) General election: Wins-losses in 1st electoral district in 47 prefectures; Ruling camp wins 27 seats, opposition bloc 17; 19 LDP candidates defeated in 1st electoral districts

MAINICHI (Page 2) (Full)

Eve., June 26, 2000

Looking at the number of seats the ruling and opposition camps obtained in the 1st single-seat districts across the country, the ruling camp won in 27 1st electoral districts, while the opposition bloc gained 17 seats. The figure indicates that the opposition parties, including the Minshuto (Democratic Party of Japan), put up a good fight. The remaining three seats were secured by conservative independent candidates. Candidates defeated include seven former cabinet-ranking members, including former agriculture minister Tokuichiro Tamazawa, who ran in the 1st Iwate electoral district, and Kaoru Yosano, former minister for international trade and industry, who ran for the 1st Tokyo single-seat. For the ruling camp, the setbacks in the 1st electoral districts could lead to damaging its ability to secure capable politicians in the urban areas. During the campaign, former Liberal Democratic Party secretary general Koichi Kato raised the alarm about such a possibility. Compared with population-dense large cities such as Tokyo metropolitan area in which many unaffiliated voters live, the seats of prefectural governments are not necessarily large cities. Three-fourths of the 47 1st electoral districts are excluded from the category of being a “large city.” However, they still serve as the centers of regional politics. The trend of voters seeking change that has been seen among the electorate in large urban areas is now beginning to appear in the smaller regional cities. This phenomenon symbolizes the outcome of the general election this time. Of the 16 candidates elected in 1st electoral districts, five were newcomers. It can be gathered that the voters in urban areas sought political change in this election. At the same time, voters expressed their dissatisfaction with senior lawmakers, as seen in that 19 LDP candidates, including former MITI minister Eiichi Nakao, who was elected ten times to the Diet, were voted out in the regional cities.

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(3) General election: Junior and senior Kono reelected; LDP wins seats in all prefectures

YOMIURI (Page 10) (Full)

June 26, 2000

Successful candidates with the oldest age and in their 20s

The oldest elected person was Seisuke Okuno (3rd Nara electoral district), former justice minister hailing from the Liberal Democratic Party (LDP). He is 86 years, followed next in age by former prime minister Hiroyasu Nakasone (elected in the Kita Kanto proportional representation bloc), who is 82.

There was no candidate born in the Meiji period. Kenzaburo Hara, former speaker of the Lower House, was the oldest person who ran in the 1996 lower-house election when he was 89.

Candidates in their 20s totaled 28 (25 ran in the single-seat constituencies and three in the proportional representation blocs). Yuko Obuchi (26), the late prime minister Keizo Obuchi’s second daughter who ran on the LDP ticket, succeeded in winning election in her father’s former constituency (5th Gunma electoral district).

Those with most times elected

The candidate elected the most times to the Diet was Yasuhiro Nakasone, who is going to serve his 20th term. He is followed by 16^th-termer former MITI minister Sadanori Yamanaka (elected in the 5th Kagoshima) and 14^th-termer former prime minister Toshiki Kaifu (9th Aichi electoral district).

Kenzaburo Hara held the record with largest number of elections, 20, in the 1996 general election.

Voter turnout

The voter turnout of the lower-house election reached 62.48 percent in the single-seat constituencies and 62.28 percent in the proportional representation blocs, up over the 1996 general election (59.65 percent in the single-seat and 59.62 percent in the proportional representation), which was the lowest-ever rate. The rate was the second worst in the postwar period, down from 67.26 percent in the 1993 lower-house election.

Successful candidates who are father and son, and brothers

Both Foreign Minister Yohei Kono (17th Kanagawa electoral district) and his eldest son, Taro Kono (15th Kanagawa) were elected in yesterday’s election. It was the second time for the father and son to each win a lower-house seat, following the previous general election. The pairs of brothers were elected include former foreign minister Taro Nakayama (18th Osaka district) and Construction Minister Masaaki Nakayama (4th Osaka) and Minshuto (Democratic Party of Japan) head Yukio Hatoyama (9th Hokkaido) and former education minister Kunio Hatoyama (Tokyo proportional representation bloc) of the LDP.

No vacant prefecture

In the 1996 election, the LDP failed to have its candidates win seats in Shiga and Okinawa prefectures. It was able to secure seats this time in all prefectures. It has gained single-seats in both Shiga and Okinawa prefectures.

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(4) Voters clearly split between LDP-supporting rural area and Minshuto-backing urban areas

MAINICHI (Page 2) (Excerpt)

Eve., June 26, 2000

The results of yesterday’s lower house election was analyzed by breaking down all single-seat constituencies into five categories by size. Our study clearly showed that the Minshuto (Democratic Party of Japan) won seats centering on large cities, whereas the Liberal Democratic Party was strong mainly in smaller agrarian areas. It can be concluded that the Minshuto’s strong achievement and the LDP’s setback are traceable to the trend of unaffiliated voters in urban areas.

The Mainichi Shimbun classified single-seat constituencies into five groups by the density of population based on the 1995 census: “large city type” constituencies (84 constituencies including 12 largest cities); “city type” (97); “quasi-city type” (32); “quasi-farmland type” (27); and “farmland type” (60).

Of the 84 “large city-type” constituencies, the Minshuto garnered 43 seats, more than a majority, whereas the LDP won 27 seats, about 30 percent of the total. This clearly illustrates that the Minshuto was able to make headway owing to support by urban floating voters.

Of the Minshuto candidates elected in “large city-type” constituencies, 11 were newcomers. Their average age comes to 39.8, with the youngest being Hisayasu Nagata (30) of the Chiba 2nd district. They are more than 10 years younger than the national average of 53.9. Presumably, their “youthfulness” was particularly appealing to urban voters.

In contrast, of the 22 LDP newcomers in large-city constituencies, only two made it to the parliament. Such nationally known figures as Kenji Eda, an ex-secretary to former prime minister Ryutaro Hashimoto, all failed to win seats. In some areas, not only personal characteristics but also party names determine success or failure of candidates.

Fifteen percent of the LDP’s votes came from “large city-type” constituencies, 34 percent from “city-type,” 12 percent from “quasi-city type,” 12 “percent from quasi-farmland type,” and 27 percent from “farmland type.” For a glance, the results seem well balanced. But out of 60 “farmland type” constituencies, the LDP won 47 seats, or more than 80 percent. In addition, of 27 “quasi-farmland type” constituencies, the LDP garnered 22 seats, also about 80 percent. Again, this underlined rural areas as the LDP’s support base.

In contrast, the Minshuto’s breakdown: “large city type” constituencies 53 percent; “city type” constituencies 32 percent; “quasi-city type” 8 percent; “quasi-farmland” 3 percent; and “farmland type” 4 percent. The Minshuto’s votes are clearly concentrated on urban areas.

Distribution of 84 “large city-type” seats among parties

Minshuto	52 percent
LDP	32 percent
New Komeito	6 percent
Independents	4 percent
Social Democratic Party	2 percent
Hoshuto (New Conservative Party)	2 percent
Jiyuto (Liberal Party)	1 percent
Independent Club	1 percent

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(5) The truth about Takeshita’s power: Opened the door to political realignment and control from behind the scene; Ushered in an era of short-lived governments and factional breakups

NIHON KEIZAI (Page 2) (Full)

June 22, 2000

The death of former prime minister Noboru Takeshita has given the impression that conservative politics led by the Liberal Democratic Party (LDP) has ended. Takeshita dexterously coordinated the interests of political, bureaucratic, and business circles. This newspaper probes into the truth about Takeshita’s influence, which lasted for 11 years after he stepped down from the premiership.

Possibility of Takeshita regaining the premier’s seat

Whenever his scenario turned out just as he wished, Takeshita had the unique habit, which struck many people as highhanded, of remaining silent with glum look on his face.

On September 30, 1991, when Toshiki Kaifu was prime minister, he once quipped that he would be making “an important decision,” after three of his bills related to political reform had been killed. Takeshita, hearing of this, made that same gloomy face and , “An ‘important decision’ means dissolving the Lower House or the resignation of the entire Cabinet. There is no other meaning.” At the time, Takeshita received information that Kaifu had clearly mentioned the words “dissolution of the Lower House.”

Although Kaifu aimed at dissolving the Lower House to the end, he gave up the idea on the morning of October 4, as well as to run again in the LDP presidential race. “If the Kaifu Cabinet had resigned en masse at the time, there would have been the possibility of Takeshita serving again as prime minister” (senior LDP official). Then Secretary General Keizo Obuchi, Takeshita’s closest aide, regretted the way the matter developed for a long time. “Even so, I was unable to give Mr. Kaifu the sack,” said Obuchi.

Inter-factional discord

Urging Kaifu to give up his desire to dissolve the Diet were Shin Kanemaru and Ichiro Ozawa, who held the real power in the Takeshita faction. Kanemaru, who had criticized those in the party seeking to return Takeshita to the premiership, accelerated the process of bringing the faction under the control of Ozawa. Kanemaru’s action incurred the anger of veteran and mid-level lawmakers in the faction who were unhappy with Ozawa.

In October 1992, the Takeshita faction divided into the Obuchi and Ozawa groups over a squabble as to who would succeed faction chief Kanemaru, who resigned from the Diet because of his involvement in the Recruit stocks-for-favors scandal. Aware that a majority of junior faction members from the Lower House supported Ozawa, Takeshita shut himself up in a Tokyo hotel and then called in more than 30 upper-house members to form the Obuchi faction.

Meeting with Takeshita, Ozawa, who was accompanied by Kanemaru, reportedly jeered at Takeshita. This ended the friendship that had existed to a certain degree between Takeshita and Ozawa. This became the spark for the political realignment that later occurred.

Control from behind the scenes

If the Takeshita administration had served out its full two terms or four years, the helm of the faction would have been transferred from Takeshita to Ozawa as expected. The early collapse of his government contributed to the breakup of the faction. As a result, the so-called “cloister government” then started.

With the breakup, the Takeshita faction fell at one stroke to the level of being the fourth largest faction in the LDP. But with Seiroku Kajiyama serving as LDP secretary general, it was able to hold on to power within the party. After that, the faction saw its golden days with Ryutaro Hashimoto and then Keizo Obuchi serving as prime ministers.

However, Takeshita’s influence gradually declined during the latter half of the Hashimoto government. Bolting the faction, Kajiyama ran in the LDP presidential race in July 1998. Kajiyama predicted: “Obuchi is the best trump card. When that card is shuffled, the age of Takeshita will be over.”

Age of Takeshita power again

Since he was hospitalized in a Tokyo hospital in April last year Takeshita avoided meeting anyone, except senior Obuchi faction members. This gave Obuchi the opportunity to exercise strong political management on his own.

Takeshita reportedly continued to give the LDP advice on resolving internal discords. He also had a hand in choosing Mori as the successor to Obuchi. Takeshita’s influence determined the political trendline. The after-image of his influence remains. As if to symbolize the end of the power game that lasted more than a decade, Obuchi passed away on May 14, Kajiyama on June 6 and Takeshita on June 19 – all lead players in the power game.

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(6) Economic projection for fiscal 2000 by major think-tanks; Growth of over 1.0 percent predicted by most institutes; Views divided over personal consumption; Possibility of self-sustaining recovery of concern

SANKEI (Page 11) (Excerpts)

June 22, 2000

Major think-tanks as of yesterday have come up with revised economic projections for fiscal 2000. They have revised upward their outlooks to reflect a rise in the real growth rate of gross domestic product (GDP) for the January – March 2000 term to a high 2.4 percent. The prevailing view is that private demand, such as information technology-centered capital investment, would tug the economy. Most think-tanks forecast positive growth for two straight years, topping 1 percent as projected by the Government. As to individual consumption, views are divided over whether a full-fledged recovery can be attained. Their outlooks for the second half of the year, including the propriety of additional fiscal spending, are diverse. As to the lifting of the Bank of Japan’s zero-interest policy, which is drawing much attention, some organizations projected that it would occur soon.

g Business opportunities projected to spread

Looking at their projections for real economic growth rates, an upward revision was made in all of them, as seen in the Asahi Research Institute having upgraded its projection to 1.4 percent, by raising its previous forecast by 0.8 percentage points. Only Sanwa Research and the Sumitomo Life Insurance Research projected lower growth than the Government outlook. All other research institutes forecast growth of over 1.0 percent. The Daiichi Life Insurance Research Institute, the Research Institute for the National Economy and the Daiwa Research Institute estimate a full-fledged recovery of over 2.0 percent, a level regarded as Japan’s potential growth rate.

The greatest factor that contributed to the think tanks’ upward revision is an uptrend in the corporate sector thanks to an increase in capital spending and exports. In particular, the IT-related business is deemed to take the lead in corporate capital spending. The Daiichi Life Economic Research Institute sees that IT-related investment would grow to a whopping 30 percent over the preceding year and maintain that level.

Many think-tanks took a positive view on growth in areas other than IT as well. The Fuji Research Institute analyzed, “Capital investment for replacing outmoded facilities and strengthening competitiveness will spread in many industrial areas because of an improvement in the investment environment, such as the restoration of corporate profits.” It predicted that “business opportunities would spread further,” instead of a single concentration of such in the IT area as in the past.

The problem is whether the uptrend in the corporate sector as seen in capital investment and corporate profits will lead to growth in individual consumption, which is absolutely necessary for a full-fledged recovery of the economy.

As to employment, too, many think-tanks pointed out that the decline in the job situation will slow down, though the prevalent view is that it would be difficult to expect a sweeping improvement for the reason of the existing “mismatch” in employment, that is to say, whereas there is shortage of manpower in growth sectors, such as IT-related, medical and welfare industries, the jobless rate is high.

The primary concern for the future is whether the economy will steam for a full-fledged and self-sustaining recovery track so that it does not have to rely on fiscal stimulus measures. The Fuji Research Institute predicted, “The economy will attain a self-sustaining recovery backed by capital investment and individual consumption.” The Dai-ichi Kangyo Bank Research Institute also projected that the economy would be put on a self-sustaining recovery in the second half of this fiscal year. In contrast, the Sanwa Research Institute is skeptical about the possibility of a full-fledged recovery, citing that public works and investment in housing would lose steam from the second half of this fiscal year.

g Different views taken on policy measures

Reflecting a situation like this, the think tanks took different views on the government’s fiscal and financial policies. The Sumitomo Life Insurance Research Institute forecast that the current zero-interest policy would be lifted in early summer. The Nissei Basic Research Center analyzed that the economic recovery phase, which set in in April last year, when the economy bottomed out, would reach the peak this summer and slow down from the fall on. It added, “If we miss this fall, we will lose such a timing forever.” In contrast, several think tanks took a negative view on the early removal of the policy, such as that Daiwa forecast the lifting of the policy early next year.

Views were also diverse as to the propriety of additional fiscal outlays. Whereas Dai-ich Life Insurance noted, “There is no need to take economic stimulus measures,” Mitsubishi worked out economic prospects, premised on economic stimulus measures worth 7 to 8 trillion yen in the second half of this fiscal year. Nomura Research Institute also came up with economic outlooks with the implementation of 3 trillion yen worth of fiscal measures as a precondition. It explained, “The first check points in predicting the future of the economy are the outcome of the general election and economic policies in response to that.”

(7) Keidanren's proposal may boost space development projects now on brink; National strategy needed for promotion

SANKEI (Page 15) (Full)

June 21, 2000

Japan may fall far behind the United States and European countries now that the latest failure in launching a domestic large-size H-2 No. 8 rocket has lost the public’s confidence [in Japan's space development program]. Concerned over this situation, the Federation of Economic Organizations (Keidanren) on the 20th issued a set of proposals that urge Japan to continue space development projects. With the importance of space development increasing every day, the National Space Development Agency (NASDA) on the same day resumed rocket engine testing for the first time since the launching failure. Attention is now on whether Japan's space development will be launched again, sparked by a proposal from big business.

[Takeshi Kobayashi]

Indomitable resolve

The failure to launch the domestic H-2 No. 8 rocket last November came as a great shock to industrial circles as well. It was the second flop, following the one in February 1998. The result has been Japan’s loss of credibility with the international community. In May, a U.S. manufacturer informed Japan it was canceling a contract to launch 10 advanced H-2A rockets now under development.

Under these circumstances, many in Japan are worried that "questions may be raised by the Japanese people asking whether Japan really needs to develop a rocket on its own.” There is also concern that morale among space scientists may drop. Keidanren now calls for sweeping reforms of Japan's space development system, noting, "Japan needs to continue space development with indomitable resolve."

Companies should be more responsible

The cause of the failed launching is in part attributed to the limitation of the separate-order system.

At present, several firms are participating in projects under the supervision of the National Space Development Agency (NASDA). But technical information was not fully shared among the participating firms, making it difficult to foresee what problems might occur.

The government-sponsored Space Development Committee's special session therefore suggested that a contract be concluded with the principal firm so as to make it responsible for the project and also to enable that firm to demand other contracted part-supplier firms to disclose their information -- a system called the prime contract system. Keidanren, upon giving support to this system, suggests shifting the objective of space development projects from "science and technology development" to "commercialization," which is easily budgeted.

Keidanren raised the problem of space development projects suffering from vertical administration by government agencies in that they involve many government offices, such as the Science and Technology Agency, the Ministry of Education, the Ministry of International Trade and Industry, the Ministry of Posts and Telecommunications and the Ministry of Transport. It proposes: "The Prime Minister needs to designate space development projects as a key industry in terms of national strategy and then to draw up an overall budget that goes beyond the parts administered by various government agencies."

Battle for 40 trillion yen market

In the sphere of space development, the U.S. has the lead over all other countries. Europe comes next.

The space market, including satellites, will grow into an estimated 40.2 trillion-yen market by 2010. Japan, already on par with the world technical levels in the satellite sector, is endeavoring to expand its market to cover Asian nations. But now that the U.S. and European countries have already entered an advanced phase of space development, Japanese industrial circles worry: "If we fail to move forward now, we will lag even farther behind other countries."

Keidanren takes the view that "the next several years will be a crucial period to decide whether Japan can counter the U.S. and Europe." In order to motivate industries to engage in space development, Keidanren is hoping for a review of Japan's space policy.

Space development is vital also in terms of national security

Future growth is not the only key element in space development.

Space utilization is essential not only for securing telecommunications networks in the event of disasters but also for the sake of national security. The space industry has provided the population with services indispensable to daily life, such as weather satellites, the car-navigation system, and satellite broadcasting. The U.S., which overwhelmingly dominates this market, has become reluctant to export space-related technology.

Keidanren insists: "In order to become less dependent on other countries for key technology but to be a tough negotiator toward other countries, Japan ought to have technology needed to develop and launch rockets and to develop and operate satellites."

Furthermore, space development technology is "an amassing of advanced technology," so beating a retreat from this sector might result in bringing to a halt Japan's own technological development. Given space development projects are in most cases seen as highly risky, governmental-level involvement is essential. Kendanren proposes to set up a "technology transfer center," citing as an example Germany's case, namely in that country, a government-affiliated space agency, by transferring advanced technology – a fruit of research and development and know-how – to other sectors' industries, helps such technology to be put into practice.

Main points of Keidanren's proposals

· In order to enhance the credibility of the National Space Development Agency in research and development, ground tests should be carried out more often and space demonstration opportunities should be made more available.

· There is need to clarify the significance of space development in terms of economic and security affairs, and a policy focusing on "space commercialization" should be adopted.

· The Government should work out a horizontally-based space policy administration that transcends the vertical administration of government, and it should set a basic policy for budget allocation.

· The Government should introduce a prime contract system for rocket development and pave the way for firms to become responsible for designing and manufacturing.

· The Government should promote transfer of technology to the private sector.

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(8) What is peace? Questions from Okinawan women: Annet Caragain [TN: phonetic]; Tackling the Amerasian problem without recompense; "The Government does not turn its eyes on the matter"

OKINAWA TIMES (Page ?) (Full)

Eve., June 21, 2000

"I want no part of my family living in Japan. I don't want to pay the child-rearing expenses. You can't do anything about the matter, " said a former U.S. Marine (29), now living in Illinois, to Annet Caragain (47), an American attorney specializing in foreign law, when she talked to him on behalf of his ex-Japanese wife by international phone call. The man's irresponsible response enraged Caragain, who then shouted, "I will bring you to court without fail."

"Help me!"

The man in question married a Japanese woman residing in the city of Urasoe when he was serving in Okinawa with the Marine Corps. They had two children. But later, having retired from the Marine Corps, he left the house one day in January 1997, saying, "I am going out to interview for a job.” He never came back to his wife and children, but instead, returned to the U.S.

With no contact from her husband, his wife became suspicious. She telephoned his parents' home in the U.S. and found him there. He told his wife over the phone, "I don't want to return to Okinawa, although I love my family…" She was at a loss what to do, wondering, "Who can I consult on this matter?" Around that time, she happened to meet Ms. Caragain, who tackled the child-rearing problem without charging a fee. About two years later, she won the lawsuit calling for a monthly payment for child-rearing expenses."

There are more than 400 Amerasian elementary and junior high school children who have been born between American men and Japanese women in Okinawa where many U.S. military bases are concentrated. It is often the case there that divorced husbands refuse to pay for child-rearing expenses. Germany, too, after the end of World War II, had American troops present, but in dealing with the same sort of problem, Germany concluded a pact with each state in the U.S. in order to make it possible to force irresponsible fathers to pay for their children’s rearing expenses. Japan has never concluded such a pact.

"All we can do is to fall back on the goodwill of each American state, " said Caragain. She sends letters calling for "help" every day to officials in charge of the matter in relevant state governments. She has asked the Japanese Government and other bodies to resolve the child-rearing issue, but a response has yet to come.

Cold reaction

The Government began to have an interest in the child-rearing issue early this year. This change can be attributed perhaps only to the Group of Eight (G-8) Summit Conference being in Okinawa this July.

The Government’s attitude appears cold to Caragain. She has helped women who, after losing their economic support, have had to face the problem of educating their children under such complex circumstances as having a different mother tongue and nationality.

"Okinawan women are crying out for help, but the government of Japan is reluctant to seriously deal with them. It will not take any action unless it comes under foreign pressure."

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	Real growth rate	Individual consumption	Capital spending	Jobless rate
Mitsubishi	1.5	1.3	5.8	4.7
Sanwa	0.9	0.3	5.2	4.7
Sakura	1.6	1.0	5.8	5.0
Fuji	1.6	1.8	6.8	4.5
Dai-ichi Kangin	1.6	1.3	6.9	4.8
Asahi	1.4	0.8	7.2	4.8
NERC	2.4	1.9	7.9	5.1
Dai-ichi Life Insurance	2.5	1.3	10.4	4.8
Sumitomo Life Insurance	0.9	0.5	4.3	5.0
Nissei	1.9	1.1	7.2	4.7
Nomura	1.7	1.3	6.2	4.7
Daiwa	2.3	1.5	8.9	4.8