./.RESTRICTEDWORLD TRADE
ORGANIZATIONGPA/W/100
16 November 1999
(99-4933)
Committee on Government Procurement Original:  English
QUESTIONS TO JAPAN RELATING TO NTT
Communication from the United States
The following communication, dated 13 November 1999, has been received from the
Permanent Mission of the United States with the request that it be circulated to the Committee on
Government Procurement.
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Please find below questions regarding Japan's notification of a proposed modification to its
Appendix I (GPA/W/91).
1. According to Japan's 6 September 1999 notification, when NTT was restructured on
1 July 1999.  NTT Communications Corporation "took over the interprefectural telecommunications
business activities conducted by NTT".  Please describe in detail those activities.
2. Were NTT East Corporation and NTT West Corporation established as private companies
under the Japanese Commercial Law?
3. Was NTT's transfer of business activities to NTT Communications Corporation different from
its transfer of business activities to NTT East and NTT West?  If so, please explain the differences in
detail.
4. Has government control or influence over NTT Communications Corporation been
effectively eliminated?  If so, how?  Please explain in detail.
5. How does the Government of Japan explain the following means of government control or
influence over NTT Communications, as set out in the Supplementary Provisions of the NTT Law
cited below?:
(a) the requirements in Article 4 of the Supplementary Provisions of the NTT Law that
MPT instruct NTT to compile implementation plans for each successor company,which includes NTT Communications Corporation, in accordance with an MPT
ministerial ordinance, and that NTT obtain MPT authorization to change the
implementation plans;
(b) the exemptions of NTT Communications Co rporation from certain provisions of the
Commercial Law, based on Article 6 of th e Supplementary Provisions of the NTT
Law;
(c) the provisions in Article 12 of the Supplementary Provisions of the NTT Law related
to the exemption NTT Communications Corporation as well as the RegionalCompanies from certain taxes;  andGPA/W/100
Page 2
(d) Article 13 of the Supplementary Provisions of the NTT Law, which states that MPT
authorization is necessary if NTT intends to dispose of the share of NTT
Communications Corporation.
6. With its exemption from certain taxes based upon Article 12 of the Supplementary Provisions
of the NTT Law, has not NTT Communications been accorded benefits that are not accorded to
companies established under the Commercial Code?  Why has NTT Communications been given
these benefits?
7. What other companies established under Japan's Commercial Code are required to seek
government approval before selling stock in the company?
8. Other than what is described in question 5 above, in what ways is the Japanese Government
empowered to control/influence NTT Communications?  Please describe with relevant legal cites.
9. What percentage of NTT (Holding Company)  stocks does the Government of Japan hold at
present?  What percentage of NTT Communications does the Holding Company hold at present?
10. What rights does Japan's Commercial Code accord to shareholders who hold at least one third
of a company's stock?  Please explain in detail, with relevant legal cites.
11. What share of the Japanese long distance market does NTT Communications currently have?
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