AMERICAN EMBASSY, TOKYO
POLITICAL SECTION
TRANSLATION SERVICES BRANCH
INQUIRIES: 583-7141 EXT 426

DAILY SUMMARY OF JAPANESE PRESS

Wednesday, November 14, 1973

EDITORIALS

<table><tr><td>KISSINGER Visit to Japan and Middle East Diplomacy</td><td>(Mainichi)</td><td>1</td></tr><tr><td>On the Occasion of Greeting Secretary of State</td><td></td><td>2</td></tr><tr><td>KISSINGER</td><td>(Yomiuri)</td><td>2</td></tr><tr><td>President NIXON and American People's Judgment</td><td>(Mainichi)</td><td>4</td></tr><tr><td>Growing Unrest and Dissatisfaction over TANAKA</td><td></td><td>5</td></tr><tr><td>Politics</td><td>(Asahi)</td><td>5</td></tr><tr><td>We Urge Orderly Way of Coping with "Trial"</td><td></td><td>7</td></tr><tr><td>Protraction of Oil Crisis Inevitable</td><td>(Sankei)</td><td>7</td></tr><tr><td>Background behind Low Yen Quotations</td><td>(Tokyo Shimbun)</td><td>9</td></tr></table>

ARTICLES

<table><tr><td>Secretary of State KISSINGER to Come to Japan<br/>Today</td><td>(Tokyo Shimbun)</td><td>10</td></tr><tr><td>"Every Nation Has Trouble about Prices and Public Nuisances; Japan Not So Serious"</td><td></td><td>11</td></tr><tr><td>Statement by Prime Minister TANAKA</td><td>(Mainichi)</td><td>11</td></tr><tr><td>Gives Serious Shock to Renovationists; Conservatives<br/>Win Victory in Election for Nagano and Ueda City<br/>Mayors; Renovationists Defeated by Enthusiasm of<br/>LDP</td><td>(Asahi)</td><td>12</td></tr><tr><td>TANAKA Cabinet's Unpopularity Continues; Results<br/>of Kyodo News Service's Public Opinion<br/>Survey; Anger at "No Policy toward Commodity<br/>Prices"; Rates of Support for Opposition<br/>Parties Also Decrease</td><td>(Kanagawa Shimbun)</td><td>13</td></tr><tr><td>Sales by Textile Sectors in First Half of<br/>Fiscal 1973 (April-September) by Ten Large<br/>Trading Firms in Japan</td><td>(Nihon Seni Shimbun)</td><td>16</td></tr><tr><td>Oil Supply to Big Consumers to Be Reduced<br/>Greatly by 15% to 16%; MITI's Policy;<br/>Electric Power, Iron and Steel, Etc.</td><td>(Mainichi)</td><td>17</td></tr><tr><td>Agreement Reached on Import Contract for Indonesian<br/>Natural Gas; Quantity of Supply and Price as<br/>Promised</td><td>(Asahi)</td><td>18</td></tr><tr><td>Crude Oil Shipment in Confusion along Persian<br/>Gulf; Some Ships Leave Port Empty</td><td>(Nihon Keizai)</td><td>19</td></tr><tr><td>Awakening Drugs Worth ¥50 Billion Smuggled into<br/>Japan Via Hongkong Route</td><td>(Nihon Keizai)</td><td>20</td></tr><tr><td>"Confrontation with Prime Minister" Strengthened;<br/>FUKUDA Faction Holds General Meeting</td><td>(Nihon Keizai)</td><td>21</td></tr><tr><td>LDP's Structure of Way of Thinking (Part 12)</td><td>(Nihon Keizai)</td><td>22</td></tr><tr><td>Nigeria Oil Discovers Oil Strata in Sea<br/>Mining Area off Nigeria</td><td>(Nikkan Kogyo)</td><td>24</td></tr><tr><td>Heading for Expansion of Japan-China Trade;<br/>Substantial Bank Loans to China; In Form<br/>of Deposits in Bank of China</td><td>(Mainichi)</td><td>25</td></tr><tr><td>Dietmen's Mission to Be Sent to Arab Nations;<br/>Prime Minister's Instructions for Breaking<br/>"Oil" Crisis</td><td>(Tokyo Shimbun)</td><td>26</td></tr></table>

(over)

<table>
  <tbody>
    <tr>
      <td>Energy to Be Secured by Making Atomic Energy Safe:<br/>New Chairman of Atomic Energy Industrial Forum<br/>ARISAWA ....................................................(Asahi) .. 27</td>
    </tr>
    <tr>
      <td>Stable Supply of Oil Requested of Iran and<br/>Indonesia -- Government ................................(Sankei) .. 27</td>
    </tr>
    <tr>
      <td>Will Not Approve Increase in Flights on<br/>International Lines Even after April Next<br/>Year; Transportation Ministry Firms Up Policy<br/>toward Air Schedule ....................................(Sankei) .. 28</td>
    </tr>
    <tr>
      <td>US Secretary of State KISSINGER to Come to Japan<br/>Today ........................................................(Sankei) .. 28</td>
    </tr>
    <tr>
      <td>Secretary of State KISSINGER to Arrive in Japan..<br/>Today; Co-ordination on Pro-Arab Shift; Talks<br/>with Prime Minister Tomorrow ........................(Yomiuri) .. 29</td>
    </tr>
    <tr>
      <td>Secretary of State KISSINGER to Arrive in<br/>Japan Today ..............................................(Nihon Keizai) .. 29</td>
    </tr>
    <tr>
      <td>JSP to Send Delegation to Arab Countries for<br/>Talks on Oil Problem ..................................(Sankei) .. 29</td>
    </tr>
    <tr>
      <td>Draft Settlement of Accounts in First Half of<br/>Fiscal 1973 (April-September) by Ten Large<br/>Trading Firms in Japan ..............................(Nihon Seni Shimbun) .. 30</td>
    </tr>
    <tr>
      <td>Mr. INGERSOLL to Leave Japan on the 17th;<br/>Reputation of "Businessman American<br/>Ambassador" During His Stay in Japan ................(Sankei) .. 31</td>
    </tr>
    <tr>
      <td>Truth of KIM Dae Jung Incident Still Not<br/>Clarified; People Not Convinced with "Political<br/>Settlement"; Should Permit KIM's Leaving<br/>Country Quickly; Statements by Professor<br/>REISCHAUER ............................................(Yomiuri) .. 34</td>
    </tr>
    <tr>
      <td>Oil Development in Tonkin Gulf and East China<br/>Sea; Fuyo Group Negotiates with French Oil<br/>for Tie-Up ..............................................(Nihon Keizai) .. 35</td>
    </tr>
    <tr>
      <td>Diet Negotiations Making No Progress; Pending<br/>Personnel Reshuffle; Sense of Lack of Ability<br/>and Distrust in Prime Minister Hampering LDP;<br/>Voices of Complaint as to "Ability Being<br/>Doubted" ..............................................(Asahi) .. 35</td>
    </tr>
    <tr>
      <td>Heading toward Consultations with US on "Yakut";<br/>Japan-Soviet Economic Committee's Natural Gas<br/>Discussion Council's Way of Pushing Negotiations<br/>with Soviet Side ....................................(Nihon Keizai) .. 37</td>
    </tr>
    <tr>
      <td>UNICE-Keidanren Conference Reaches Agreement on<br/>Japan-EC Co-operation over Oil Problem ............(Mainichi) .. 38</td>
    </tr>
    <tr>
      <td>20 Per Cent Reduction of Oil to Bring Minus<br/>Growth: Bank of Japan's Trial Calculation ............(Asahi) .. 38</td>
    </tr>
    <tr>
      <td>Co-operation on Restrictions Requested; ITI<br/>Minister Gives Report on Tiding over of<br/>Oil Crisis ..............................................(Tokyo Shimbun) .. 39</td>
    </tr>
    <tr>
      <td>Oil and Prices Becoming Key Political Issues ...........(Asahi) .. 40</td>
    </tr>
    <tr>
      <td>Conclusion of Multilateral Agreement on Textiles<br/>within This Year Depends on EC Attitude:<br/>MITI Councillor SUZUKI ........................(Nihon Seni Shimbun) .. 41</td>
    </tr>
    <tr>
      <td>How to Cope with Energy Crisis (Part 2) ............(Nihon Kogyo) .. 42</td>
    </tr>
    <tr>
      <td>Press Conference with EPA Director General<br/>KOSAKA ................................................(Nihon Keizai) .. 44</td>
    </tr>
    <tr>
      <td>King FAYSAL of Saudi Arabia Holds Talks with<br/>Former Ambassador TAMURA on Oil Problem;<br/>Shows Friendly Reaction toward Japan ............(Yomiuri) .. 45</td>
    </tr>
    <tr>
      <td>International Fund for Arab Development; Finance<br/>Minister AICHI's Plan; To Propose It to U.S.<br/>Secretary of State; As Way to Break "Oil"<br/>Difficulty; To Absorb Oil Dollars and<br/>Financing Aid at Low Interest ........................(Mainichi) .. 46</td>
    </tr>
    <tr>
      <td>Measures for Settling KIM Incident Proposed by<br/>Japanese Side: Foreign Minister OHIRA's<br/>Diet Reply ............................................(Yomiuri) .. 47</td>
    </tr>
  </tbody>
</table>

- 2 -

At the same time, it should be possible for our country to extricate
itself from the diplomacy of merely taking part in resolutions, following
the general trend of the world, within the framework of the U.N., under
the pretext of the so-called diplomacy, centering on the U.N., and to
express independently, from its own standpoint of maintaining international
peace, clearly and openly, the unjustness of Israel's continuing to hold
the occupied areas, even since the Middle East War of 1967. Furthermore,
toward Secretary of State KISSINGER, should not Japan rather take the
position of convincing the U.S., as a natural revision of its course,
instead of taking the attitude of seeking the understanding of the U.S.,
for its supporting of the Arab side, in a tone of explanatory justification?
The Arab countries will probably not trust Japan, unless it takes actual
moves, instead of merely paying them lip-service. It is thought that an
increase in technical co-operation will provide one such means.

The nine EC Foreign Ministers conference already adopted a more pro-Arab and anti-Israel resolution, than the U.N. Resolution. On the other hand, Japan is giving the impression to various countries concerned that it is completely rejecting all Arab demands.

When Prime Minister TANAKA took up the question of co-operation in
the development of oil resources with Britain and the Soviet Union, on the
occasion of his visits to Europe and the Soviet Union, it is said that the
Arab countries were displeased with these consultations which excluded the
oil-producing countries. The oil crisis this time can be said to be an
example of how great a difficulty diplomacy, which lacks foresight and
which always moves belatedly, can bring to the people. The Government
should awaken to the fact that this is a difficult problem for which our
country itself must open a way to settlement, even though it may respect
Secretary of State KISSINGER's views.

KH

YOMIURI (Full)

November 15, 1973

On the Occasion of Greeting Secretary of State KISSINGER

US Secretary of State KISSINGER opened the break-through point
for putting the Middle East War under control, by making arrangements
for the signing of the Ceasefire Agreement between Egypt and Israel,
through his visits to various Middle East nations. On his way back
from these nations, the Secretary of State visited China on the 10th,
and now he is scheduled to come to our country on the 14th, that is, today,
and to hold a series of talks with Japanese Government leaders, starting
with Prime Minister TANAKA.

We can probably say that the fact that talks were held in China with
Chairman MAO unexpectedly, shows that the talks held this time between
Secretary of State KISSINGER and Premier CHOU and others were satisfactory
for both sides. However, concerning the problem of normalizing Sino-US
relations, it will be difficult to restore diplomatic relations between
the two nations officially, because it is probably impossible for the US
side to sever diplomatic relations with Taiwan in the near future. How-
ever, as it seems that both the US and China are in agreement as regards
the point that they should establish close relations between them in the
fields of the economy, culture, and others, it is fully conceivable that
agreement has been established on promoting Sino-US relations even to the
situation, which is close to virtual restoration of Sino-US relations,
through the conclusion of a cultural agreement, trade agreement, and other
operational agreements.

On the occasion of Secretary of State KISSINGER's visit to our
country this time, we want to listen to him, as concretely as possible,
as to the contents of the Sino-US talks, especially as to how the Chinese
side is viewing the Middle East situation for the present and also in
the future, and how the Chinese side intends to deal with the same situa-
tion. Also, we want to sound him out as to the situation of the problem of
a Sino-US aviation agreement, the conclusion of which the US side has
been hoping for since a long time ago, and which must have been discussed,
probably, at the Sino-US talks this time.

At this time when economic problems, centering on the imbalance in
trade, which was said to have been the biggest problem between Japan and
the US, are moving in the direction of being settled, for the time
being, due to another revaluation of the yen and a sharp rise in the
prices of agricultural products cropped in the US, probably it will not
be necessary to discuss these problems again at talks to be held with
Secretary of State KISSINGER during a limited time. The problem, about
which we most want to ask Secretary of State KISSINGER, at this time, is
his frank view on the Middle East situation. What is the reason for
Saudi Arabia, which had been regarded as comparatively friendly toward
the US, having formulated severer measures than expected as to the
oil problem this time? Is there the strong possibility of the Arab
side's continuing its oil policy until an over-all settlement of the
Middle East problem is realized? What is necessary for the purpose of
having the Arab side soften its attitude toward the oil problem? We hope
that the Japanese side will ask probing questions to Secretary KISSINGER
as much as possible.

At the same time, on the part of our country, which is being exposed
to the most serious crisis in connection with the oil problem, it is neces-
sary to make efforts so as to secure Secretary KISSINGER's understanding
toward the possibility that our country may not stick to its neutral
position toward the Middle East problem in the future; that it cannot but
assume an attitude to support the Arab side, although after holding adequate
talks with the US side; and that depending on circumstances, it cannot but
take some action or other. Judging from the position of the US, which
criticized the un-co-operative attitude of West Europe toward the Middle
East crisis this time, it is fully conceivable that the US side will show its
disapproval, depending on how favorable an attitude our country will assume
toward the Arab side. However, as the oil crisis is a problem which
will shake the very foundation of the Japanese economy, we want to secure
the US side's understanding toward the possibility that our country will
be forced to take a policy, which considerably leans toward the Arab
side, depending on circumstances.

On this occasion, probably talks will be held on the KISSINGER
concept, too. As already clear from the results of Prime Minister TANAKA's
visit to Europe, Britain, France, and Germany are not taking a favorable
attitude toward Japan's participation in the same concept with the same
status as that of the EC, although there are differences in nuances among
these nations. If this is true, it is the indispensable condition to
co-ordinate views on this problem between the US and Europe. We want to
clarify that whether our country will participate in the same concept or
it will render co-operation to the concept, is a problem which should be
discussed after co-ordination is held.

KS

- 3 -

However, in view of President NIXON's actions centering on the Watergate Case and various other cases which have been brought to light in that connection, the judgment seems to have become dominant that these are beyond the limit of the "wide-range" privileges given to the US President.

President NIXON has produced excellent results in the field of diplomacy hitherto, such as the peace in Vietnam and reconciliation with China and the Soviet Union. Few people would doubt that he is a man of ability as a politician. In fact, this has been a strong pillar of support for NIXON. However, the US President is not only a political leader of the United States but also a leader of the people. Accordingly, if the American people judge that President NIXON's actions have gone beyond the limit of permissibility under the American-style political system and that they cannot trust him as a leader of the people, the President cannot remain in his post. It appears that the time for President NIXON to make a decision is no longer so far in the future.

MT

ASAHI (Full)

November 12, 1973

Growing Unrest and Dissatisfaction over TANAKA Politics

The uneasy feeling, which we harbored over the future of the TANAKA Cabinet when this Cabinet was installed in office in the summer of last year, is undeniably becoming a reality now.

In what way will the TANAKA Cabinet remodel Japan? In what society will the people live in the future? Our uneasiness came from the accumulation of such questions.

At present, prices are soaring almost limitlessly, and there is a conspicuous tendency toward devastation of the public mind, which is peculiar to the age of inflation. The people are only talking about their unstable livelihood. Isn't such a reality quite the contrary to the social image once revealed by Prime Minister TANAKA? Doesn't Prime Minister TANAKA, who is called the Prime Minister representing the masses, lack, in fact, the political sense to understand the actual feeling of the masses in their everyday life? The everyday conversations among the masses reflect a strong undercurrent of such doubts and disappointment.

True, the progress of inflation is a world-wide phenomenon. Also it can be said that the progress of inflation has entered a decisive stage due to the limitation of the supply and the raising of the prices of petroleum, which is one of the basic commodities. Prime Minister TANAKA, however, will not be excused from the responsibility for the progress of inflation, nor will the popular feeling of unrest be liquidated, however great emphasis the Prime Minister may lay on such external conditions.

The shortage of oil resources has made it clear that Prime Minister TANAKA must definitely change his economic policy of "making use of growth" under the present situation. Nevertheless, the Prime Minister is going to implement his basic plan for remodeling of the Japanese Archipelago according to the theory of economic growth. He is not likely to show any "decision and implementation" in favor of a change in his policies.

Since this summer, some LDP leaders, such as Takeo FUKUDA, Takeo MIKI, Masayoshi OHIRA and Yasuhiro NAKASONE, have made their respective proposals to change the policies of the Government in order to meet such a situation. FUKUDA, for instance, revealed the view that the progress of inflation will lead to widespread speculation and that the popular feeling of dissatisfaction at social injustice, which will grow under such a situation, will precipitate a crisis of the LDP. He contended that "The Government should concentrate its efforts on the problem of overcoming inflation" and that "The remodeling of the country should be started only after the solution of this problem."

- 5 -

- 6 -

This opinion, however, has not been reflected at all in the basic policies of the Government. We feel this fact is indicative of the deep-rooted evils within the present Cabinet.

The Government and the Ruling Party as a whole are not functioning organically, while they maintain an all-Party structure on the surface. Also Prime Minister TANAKA adheres to his own convictions, and is not willing to listen to opinions or views on policies and values which are different from his own. We feel such a personal character of the Prime Minister remains an obstacle to the establishment of a theater for constructive discussions. Underlying this fact is, of course, a gap between the people's expectations on politics and what the Prime Minister thinks should be given priority in politics.

It deserves attention that brisk discussions took place on the pros and cons of the plan for construction of a network of new National Railway lines, at the Cabinet meeting held on September 23, when Prime Minister TANAKA was traveling abroad.

Article 4 of the Cabinet Law provides that "The Cabinet shall exercise its power according to the decisions made at Cabinet meetings." This means that the Cabinet meeting is recognized as the highest organ to exercise the executive power. In fact, however, the functions of Cabinet meetings have been virtually limited to administrative affairs. It has been very rare that discussions on important policies for the nation took place at Cabinet meetings. Such discussions, however, suddenly took place at a Cabinet meeting, which was held without the participation of the Prime Minister.

Doesn't this event indicate that Prime Minister TANAKA has not been making use of the Cabinet meetings as meetings for important discussions, which befit the authority of Cabinet meetings recognized by law? Also it must be noted that such discussions on policies ceased to occur at the Cabinet meetings, which were held after the Prime Minister returned from abroad. In view of this fact, we cannot but doubt whether the LDP leaders, who hold Ministerial posts and who made their respective proposals as leaders of the internal factions of the Ruling Party, truly wanted to have their contentions reflected in the policies of the present Cabinet, or whether they made their proposals only according to their respective factional strategy for seizure of power after Prime Minister TANAKA's resignation.

In the spring of 1962, the then EFA Director General Aichiro FUJIYAMA criticized the rapid economic growth policy of the IKEDA Cabinet. His remarkable opinion, however, did not bear fruit in the end, because it was not taken up for discussion within the Cabinet. If this opinion had been incorporated into the policies of the Government independently of the speculation harbored by the respective internal factions of the LDP, the actual situation in the country would have become considerably different from what it is at present."

There are numerous opinions on how to overcome the present situation. Neither the TANAKA Cabinet nor the political group called the LDP, however, has functions to absorb such opinions and produce effective countermeasures. With politics in such a state, the condition of the people's livelihood is worsening day by day. The popular feeling of unrest and dissatisfaction over TANAKA politics cannot but increase steadily.

HF

TOKYO SHIMBUN (Full)

November 12, 1973

## Background behind Low Yen Quotations

We cannot simply support the argument that the big deficit keynote of our country's international payments accounts has become stabilized. It is necessary above everything else to take measures to make the most of the effects of the float and to grab the direction for currency reform in advance.

Since the beginning of November, the high price of the dollar and the low price of the yen have been continuing on the Tokyo Foreign Exchange Market. In European markets, too, the dollar is continuing to rise in value. Since the beginning of this year, the balance in the international payments accounts of our country has shifted to a large-scale deficit keynote, while that in the US international payments accounts has been heading toward improvement. In view of this fact, it may be said that the current quotation levels of the dollar and the yen reflect their respective real values. Rather, the problem is whether the deficit-balance keynote of our country has become stabilized structurally.

In the case of the overall accounts, they showed a big deficit this January, though they had hitherto been in a large-scale surplus keynote. In February, the amounts, involved in leads and lags (meaning the export and import traders' moving up or moving down the time for settlement of accounts), increased sharply, because the yen shifted to the floating system around the middle of that month, and a large-scale surplus balance was registered again. As of the end of February, the amount of foreign currency reserves reached 19,067,000,000 dollars, or the highest level registered hitherto. As is generally known, however, the overall accounts have consistently continued to show a big deficit since March, and the total amount of deficits, accumulated during the January-September period, reached 6,200,000,000 dollars. Thus, the amount of foreign currency reserves as of the end of October decreased by as much as 5,000,000,000 dollars, compared with the peak, seen at the end of February. In this way, the situation has changed completely.

According to the results of tentative calculations, conducted by the Finance Ministry and MITI, the surplus balance in the trade accounts for the current fiscal year is estimated at 4,600,000,000 dollars (8,100,000,000 dollars in the Government's original estimate), the deficit in the non-trade and transfer accounts -- 3,700,000,000 dollars (3,150,000,000 dollars), the surplus balance in the current accounts -- 900,000,000 dollars (4,950,000,000 dollars) equivalent to the difference between the two above-mentioned figures, the deficit in the long-term capital accounts -- 7,600,000,000 dollars (4,000,000,000 dollars), and the deficit in the basic accounts -- 6,700,000,000 dollars (surplus of 950,000,000 dollars) equivalent to the difference between the balance in the current accounts and that in the long-term capital accounts. Moreover, it is estimated that the overall accounts will also show about the same amount of deficit as the basic accounts.

However, the effects of the Middle East War are excluded from the above-mentioned figures. If the large-scale raising of Middle East crude oil prices is taken into consideration, then the current accounts will become balanced or will register a deficit, and the basic accounts will also show a deficit amounting to the level of 7,000,000,000 dollars. Thus, there is also the possibility that the amount of foreign currency reserves as of the end of this fiscal year will drop below the level of 10,000,000,000 dollars.

KANAGAWA SHIMBUN (Full)

November 12, 1973

TANAKA Cabinet's Unpopularity Continues; Results of Kyodo News Service's Public Opinion Survey; Anger at "No Policy toward Commodity Prices"; Rates of Support for Opposition Parties Also Decrease

How do the people, harassed by high commodity prices, regard the TANAKA Cabinet recently? Kyodo News Service, of which this paper is a member, conducted a nation-wide public opinion survey, on October 20 and 21, soon after Prime Minister TANAKA returned home from his visit to Europe and the Soviet Union, and surveyed the trends of the eligible voters' support for the Cabinet and various political parties. The result was that the support rate for the TANAKA Cabinet was 26.8 percent, and although this showed a slight recovery from the level of 21 percent at one time (in the last survey, conducted in June), there was still no change in its "unpopularity," and those not supporting the TANAKA Cabinet accounted for more than a majority, that is, 52.2 percent, or roughly one out of every two persons.

As the moves in the support for political parties, a conspicuous point was the decline of the rate of support for the JSP, dropping from 22.4 percent in the last survey, to 18.6 percent. Because of this, the rates of support for the Ruling and the Opposition Parties were reversed, and the rate of support for the LDP exceeded the rate of support for all Opposition Parties combined.

Exactly about the same percentage of decrease seen in the rate of support for the Opposition Parties was seen in an increase in the percentage of persons "not supporting any political party." The "non-political" group, or the "non-political party" group accounted for 31.3 percent, or almost one third of all eligible voters.

This survey was conducted with the interviewer meeting each object of the survey, who were 3,000 eligible voters from all parts of the country, chosen by the stratified, two-stage, random-sampling method, directly and by obtaining his or her answer. The recovery rate of effective answers was 83.8 percent (2,513 persons).

This was the third survey on the rate of support for the TANAKA Cabinet conducted this year, and the support rate, which was 27.3 percent in April, dropped to the lowest level of 21.5 percent in the survey in June. Four months since then, in the survey this time, the rate slightly picked up, reached 26.8 percent, but the popularity of the TANAKA Cabinet is still quite low.

Especially, those who replied that they "do not support it," did not show any great fluctuations, with the percentage being 50.3 percent in the April survey, 60.9 percent in the June survey, and 52.2 percent in the survey this time. In all three surveys, the percentage of those "not supporting it" was big, and far exceeded those "supporting it." Furthermore, they accounted for more than the majority.

It was only in the case of persons of older age, in their 60's, when viewed by age group, and among persons engaging in agriculture, forestry and fisheries, who provide the foundation for the conservative forces, when viewed by profession that the rate of persons "supporting it" exceeded the rate of persons "not supporting it." Viewed by educational background and by place of residence, the rate of non-support exceeded the rate of support. This shows exactly the same trend as in the survey in April, and in the working class of people, who directly receive the brunt of high commodity prices, the rate of support was 19.9 percent as against the rate of non-support of 63.8 percent among clerical and technical workers, and 21.3 percent of support and 60.5 percent of non-support among manual workers, thereby showing a strong degree of distrust. The same thing can be said in regard to housewives, who are in charge of the household economy.

MAINICHI (Full)

November 10, 1973

Oil Supply to Big Consumers to Be Reduced Greatly by 15% to 16%: MITI's Policy; Electric Power, Iron and Steel, Etc.

In order to cope with the oil crisis, our country has finally decided to restrict the consumption of oil. MITI held an emergency meeting of its leaders on Nov. 9, and discussed "emergency oil-consumption restriction measures," which are scheduled to be decided at the Cabinet meeting, slated for next week. As a result, agreement was reached on the stand that even if it is true that somewhat bright prospects have been obtained as to Middle East peace, the supply of crude oil will be still left severe. Moreover, a policy was decided to the effect that the rate of reduction in the supply of oil to big consumers, including electric power and iron and steel, through administrative guidance, which is a focal point of consumption restrictions for the present, will be fixed drastically at an average of 15 to 16 percent or so for the second half of fiscal 1973, and that at the same time, in order not to stimulate the "commodity-shortage inflation," the planned reduction of supply will be carried out on the basis of a "two-stage formula," under which, at the beginning, it will start, with the supply held down to a low level, and under which the rate of reduction will be raised from next year.

MITI has also decided to curb oil product exports, which account for a little less than 10 percent of the total demand amount at present, and to include oil products among the object items for the imposition of restrictions on the basis of the Trade Control Ordinance. It plans to incorporate this decision in the emergency countermeasures, together with the plan of giving consideration also to extending emergency loans to medium and small enterprises concerned, which will suffer a serious blow, due to the proposed curtailment of oil supply to industrial circles concerned. Moreover, MITI plans to consolidate these measures, to hold again a meeting of its leaders on the 12th, next week, to decide on MITI's draft plan, and to have it decided at the Cabinet meeting, slated for the 16th, after conducting final boiling-down discussions with the Finance Ministry, the EPA, and various other Ministries concerned.

According to the oil-supply plan for fiscal 1973, the prospects are that during the second half of the same fiscal year, oil amounting to 157,000,000 kiloliters, or about 13 percent over the level registered during the corresponding period of the preceding fiscal year, will be supplied. However, MITI observes that the estimated amount of imports will inevitably decrease by a minimum of 15 to 16 percent or so, due to the reduction of supply by OPEC.

Therefore, from the stand that it is also necessary to carry out drastically the reduction of oil supply to big consumers, including electric power and iron and steel, as well as the proposed energy-saving campaign, which only will have the effect of securing an economization of several percent or so, at the maximum, MITI has decided to fix the rate of reduction at a uniform 15 to 16 percent or so on the average for the second half of fiscal 1973.

However, in regard to key industries, such as iron and steel and petro-chemicals, there is the fear that if the supply of oil is reduced drastically at one stroke, it may give an impetus to the "commodity-shortage inflation," in view of the present situation whereby the demand-supply relations are still stringent even at present. Therefore, MITI thinks it necessary to push strongly the holding down of overall demand in parallel with the planned reduction of supply, with emphasis mainly on financial and taxation measures, including the curbing of public investments.

- 22 -

NIHON KEIZAI (Fu11)

October 1, 1973

-- Results of Survey by Interviews with Lower House Members --

Doubts Harbored over Activities of Enterprises Reflecting Lack of Morals
and Absence of Politics; "Necessity of Framework" Recognized by 67 Per Cent;
Evil Nature Denied and Awakening Desired by Some Members

Time to Review "Liberal Economy"

The large-scale speculative purchase of land and those materials and goods which are essential for the people's livelihood, such as soy beans, raw silk and rice, by the big trading firms and other enterprises caused the people to harbor a strong feeling of distrust toward big enterprises. Consequently, ethical principles for enterprises came to be taken up for discussion, and unrestricted competition became a target of public criticism. In view of such a situation, we sought the views held by the Lower House members of the LDP, which stands for the liberal economic structure, about these problems.

An overwhelming majority, or 67.2 per cent (172 members), gave affirmative replies, when asked "Whether a certain framework should be established for the activities of enterprises." Of these members, 145 (56.6 per cent) expressed positive approval of such a framework, saying that "A rigid framework should be established in such forms as legal restrictions." On the other hand, 40 members (15.6 per cent) opposed the establishment of a framework, saying "We should place expectations on the awakening of enterprises." Also 36 members (14 per cent) clarified their strong opposition to the establishment of a framework, saying "It is natural that the enterprises should pursue profits under the system of free competition."

These results of the survey are somewhat unexpected. It has become clear that a far greater number of LDP members of the Lower House than we had imagined before the survey harbor doubts over the present activities of enterprises. This fact seems to have its background in the crisis-feeling caused by the declining fortunes of the LDP and the desire to review the foundation of the present liberal economic structure, as can be seen from the following replies: "Speculative purchases and other activities of big enterprises are one of the causes for the public criticism against the LDP" (Jitsuzo TOKUYASU of Tottori); "The day when enterprises were permitted to pursue profits alone has already gone. Hereafter, we must study what kind of capitalist society we should build" (Seisuke OKUNO of Nara).

Of the 172 members who replied that "A framework should be established for the activities of enterprises," 96 revealed the "worst points" of enterprises concretely. The greatest number of them pointed out the lack of ethical principles on the part of enterprises, saying, for instance, that "The problem lies in the managers' outlook on ethics" (Takao FUJIMOTO of the 1st district of Kagawa). An unexpectedly small number denounced trading firms or banks in particular. Next come, in number, those members who pointed out the absence of politics. One of them, Toshiki KAIFU (3rd district of Aichi), replied as follows: "It is not convincing to the sweating people that the enterprises are making huge, unfair profits. It is impossible, however, to correct the unfair deeds of enterprises by the strength of individuals. Here is room for politics to play a role." Also Reiichi TAKEUCHI (2nd district of Aomori) revealed a sense of self-reflection upon the "resourcelessness" of his Party, saying that "The LDP must be criticized, above all, for its failure to take effective countermeasures against the disorderly activities of enterprises."

## Controlling Functions Desired of Politics

Many of those members, who cited "cornering," expressed the opinion that "The trading firms should not dabble in land transactions." Also the following opinions were revealed: "Enterprises should not acquire land unnecessarily" (Takkan HAYASHI of the 2nd district of Chiba); "It is not desirable for enterprises to dabble in land speculation" (Yukio HAGIWARA of the 1st district of Hiroshima); "The trading firms and the department stores should revert to their primary businesses, that is, foreign trade and sale of livelihood materials, respectively" (Michio WATANABE of the 1st district of Tochigi).

Also there was the opinion that "Such a situation will lead to the collapse of the liberal system and institutions" (Keijiro MURATA of the 5th district of Aichi). Shunjiro KARASAWA (4th district of Nagano) emphasized the necessity of drawing a clear distinction between orderly freedom and "let-alone" freedom, saying "We should restrict freedom to defend freedom." Mitsuo SETOYAMA (2nd district of Miyazaki) pointed out as follows: "The let-alone policy is not to be taken by politics. The role of politics is to control the desires of the people which are unlimited in free society."

When the members arguing for "establishment of a framework" are classified according to age, we find that these members account for 60 to 70 per cent of the total in the respective age groups, with the exception of the 18 members in their thirties, of whom 15 (33.3 per cent) supported this argument. The ratio was about the same among those returned from the cities and those returned from rural constituencies. Also no conspicuous characteristic was found when the members were classified according to factional affiliation. We think, therefore, that the differences in views on the activities of enterprises reflect the differences in fundamental ways of thinking among individual politicians.

We then asked the LDP members to reveal their views on the "theory of the evil nature of enterprises," or the theory that enterprises, when let alone, will recklessly pursue profits. Of the 172 members who harbor doubts over the activities of enterprises, only 13, including Ichiro NAKAGAWA (5th district of Hokkaido), Setsu SHIGA (2nd district of Iwate), Seijuro ARAFUNE (3rd district of Saitama) and Tokuji TOKONAMI (1st district of Kagoshima), definitely replied that "This theory is correct." The remaining 159 members rejected the theory of evil nature, and revealed the view that the activities of enterprises can be corrected, to a certain extent, by moral principles and administrative guidance.

## Difficulties Recognized for Legal Restrictions

On the other hand, 40 members, including Toshio KIMURA (1st district of Mie), Naomi NISHIMURA (1st district of Shizuoka), Shin KANEMARU (Yamanashi) and Haruo KINO (5th district of Osaka), replied that "The activities of enterprises can be corrected by the awakening of enterprises themselves, without the establishment of a framework." Especially, Zenko SUZUKI (1st district of Iwate) strongly argued for self-reflection by enterprises, saying as follows: "Enterprises can maintain their existence only under the system of liberal economy. They should not, therefore, cause popular criticism which may lead to the denial of this system. Any act, which causes such criticism, is tantamount to self-strangulation." Also Takeo FUKUDA (3rd district of Gumma) stated "It is necessary for us to establish a trend of opinion in favor of social solidarity so that any anti-social act will be regarded as dishonorable for enterprises." Senichi TANIGAKI (2nd district of Kyoto), however, pointed out that it is difficult, in practice, to establish legal restrictions, saying as follows: "Enterprises should awaken to their social responsibility. In practice, their activities can be restricted only by moral principles and social sanctions, such as criticism by mass communications media."

- 23 -

- 24 -

There are 36 members who clarified a definite stand against the "establishment of a framework." They include Munenori AKAGI (3rd district of Ibaraki), Seiichi TAGAWA (2nd district of Kanagawa), and Ganri YAMASHITA (Shiga). Usaburo CHIZAKI (1st district of Hokkaido) "defended enterprises," saying as follows: "The trading firms have performed great services on the other hand. They must make enormous profits, if they want to make it up for the drastic wage increases. It is problematical, therefore, to establish a framework at once." Also Zentaro KOSAKA (1st district of Nagano) stated as follows: "Managers cannot fulfill their duties unless they have good sense, to a certain extent. It is true, however, that some enterprises, which have been developing rapidly, did not pay sufficient consideration to the necessity of harmonizing their interests with the interests of the people."

## Few Concrete Replies Given

What concrete step should be taken, regardless of whether to "establish a framework" or whether to "place expectations on the awakening of enterprises"? Only a few replies were given to this question. This seems to reflect the poverty of the present administration which is at a standstill, unable to find countermeasures. A remarkable reply was given by Koichi KAMEYAMA (1st district of Okayama) who proposed to "transfer the basic industries to public ownership." Coincidentally, both Wataro KANNO (1st district of Osaka) and Jujiro TOSAKA (3rd district of Ibaraki) expressed the opinion that "The rate of stock dividends should be limited to less than 10 per cent." They argued that the remaining profits should be returned to the employees and the consumers at large. Eiichi NISHIMURA (2nd district of Oita) emphasized that "A Trading Company Law should be enacted." Also Megumu SATO (6th district of Osaka) revealed the following opinion: "The problem lies in the way in which the trading firms intervene in or control the activities of medium and small enterprises. A law should be enacted, for instance, to limit the shares to be owned by the trading firms in their dummies." On the other hand, Yoshitake SASAKI (1st district of Akita) said as follows: "The provisions for follow-up investigations and on-site inspection, which were incorporated into the Speculation Prevention Law, have produced a considerable effect. We should step up such investigations hereafter."

HF

NIKKAN KOGYO (Full)

November 10, 1973

## Nigeria Oil Discovers Oil Strata in Sea Mining Area off Nigeria

Nigeria Oil Development (Head Office in Tokyo; President: Kazuo HAYASHI; capital: ¥11,007,500,000) announced on the 9th that it has succeeded in the discovery of oil strata with an estimated daily output of 4,000 barrels (about 700 kiloliters) and several gas strata and gas condensate strata at its trial mining well. [Amatsu (phonetic) well No. 1; 7th] in the sea mining area off the Federal Republic of Nigeria in Africa. With this, the said Company has succeeded in the mining of three wells among the seven where it has so far carried out trial mining. Within the next two or three years, it will bring into our country the 4th autonomously developed oil, following Arabian Oil, Abu Dhabi Oil, and Indonesian Oil Resources Development.

The oil fields, which the said Company has discovered this time, are in the 78th mining area, which was transferred by Monsanto of the US in the spring of this year. They are 87 meters under the sea surface, about 45 kilometers off Amatsu, Mid-Western State, the Federal Republic of Nigeria. The Company started mining late in August, stopped at a point 87 meters deep, and conducted electric examinations of the strata. As a result, it discovered the promising oil and gas strata between the depths of 1,000 and 2,600 meters. The specific gravity of the oil is about 42 degrees API, and the sulphur content is as low as less than 0.2 percent, on the same level as Minas crude oil in Indonesia.

RA

MAINICHI (Full)

November 4, 1973

Heading for Expansion of Japan-China Trade: Substantial Bank Loans to China: In Form of Deposits in Bank of China

Third Nation's Currency: Near to Realization, at Interest Rates on Euro-Dollar Loans?

The view is becoming stronger, in economic circles, that the time is approaching when the extending of "substantial bank loans" to China will be realized, in the form of Japanese banks' having third nation currency-basis fixed deposits in the Bank of China. According to a clarification made by a banking source recently, the Bank of China has already conveyed its attitude, as regards interest rates on third nation currency-basis deposits, of "approving the interest rates on the same level as those on Euro-dollar loans." Since China has been watching the moves of interest rates on Euro-dollar loans, it is observed that the time of realizing the extending of such loans to China depends on the moves of these interest rates. The banking source observes that the extending of substantial bank loans will be realized quickly, in view of the fact that the interest rates on Euro-dollar loans have recovered calmness recently and also that China has been concluding an increasing number of contracts with advanced nations in the West for the imports of plants and it has been sending an increasing number of inquiries to these nations. Economic circles have judged that when this is realized, China's ability for payments will improve, and that trade with China will further develop.

China is carrying out trade with foreign countries through purchase in cash and purchase on a deferred-payment basis. Concerning deferred payments, China is taking the attitude of rejecting all benevolent measures, including loans, on the grounds that "The problem of deferred payments is a problem, which should be considered on a commercial basis." Concerning the $1,400 million in loans obtained from the Soviet Union, China moved up the term of repayments, and completed the repayments by 1965. China is stressing the fact that it has no loans at all at present, as the basis of its independent reconstruction. However, China's ability for payments for the imports of plants is limited, as it is observed that the amount of China's foreign currency holdings is about 1 billion dollars. For this reason, the economic circles of our country, from around the time of the normalization of Japan-China diplomatic relations, rounded out the possibility of extending bank loans (bank-to-bank loans; the formula of extending loans from banks to foreign banks, which loans funds to enterprises in their nation), for the purpose of increasing the exports of plants to China. The Chinese side, however, rejected this.

The economic circles of our country are attaching expectations, in place of bank loans, on the method of their depositing third nation currency-basis money in the Bank of China, such as in dollars, and by means of this, of improving China's ability for payments. The interest rate per annum on fixed deposits in China is quite low, that is, 3.24%. In case banks in our country deposit people's yuan, which has been accumulated as a result of having carried out trade with China, the interest rate on such yuan is 5.5% per annum, according to the agreement on the settlement of accounts in yen and yuan. Thus, China's interest rates are fixed at an extremely low rate, with the stabilized commodity prices in China as the background. When the Chinese side clarified its intention, to the Japan International Trade Promotion Association Mission to China (Leader: same Association Chairman Aichiro FUJIYAMA), which was dispatched there this spring, of the Chinese side's readiness to accept third nation currency-basis deposits, it asserted that an interest rate should be fixed "as low as possible."

- 25 -

- 26 -

Around this summer, however, the Chinese side clarified its attitude that "an interest rate on the same level as that on Euro-dollar loans is acceptable." Bank of China Deputy Accountant Manager TSUI Ping, who came to Japan recently as a member of LIU Hsi-wen's Mission, reportedly revealed to Japanese banks, a positive posture toward third nation currency-basis deposits, saying, "We want to deposit surplus money mutually, and establish close relations."

The three-month basis interest rate on Euro-dollar loans at a certain time rose to such a high level as 11.5%, but the global trend for high-interest rates has passed the climax and it has dropped even to 9.2%. In view of the fact that the internationally high interest rates have recovered calmness, it is observed that the time is approaching when the Bank of China will approve third nation currency-basis deposits.

On the other hand, the Chinese side is recently increasing the imports of plants from industrial nations in the West, and it is said that China has recently concluded contracts for the imports of plants amounting to $2 billion to $3 billion. It is observed that China is feeling the strong need to increase its foreign currency holdings.

Major banks in our country are considering to deposit about $20 million, as to one bank each, at the London Branch of the Bank of China in the form of short-term, fixed deposits, regarding them substantially as long-term deposits, without drawing them out for a long period of time, even after the expiration of the term.

Banks in our country are inducing Euro-dollar loans, through a banking organization established among them, and extending bank loans, by adding a certain rate of interest to the interest rate on Euro-dollar loans. They are expecting that in case the depositing of third nation currency-basis money in China is realized, these deposits will become bank loans substantially. Going further, some enterprises are even attaching optimistic expectations, considering that in case banks within the enterprise group deposit money at the Bank of China and in case the enterprise group exports a plant to China, this will achieve the same effects as the extending of loans with strings attached. Concerning this point, however, it is observed that China, which is strictly taking the position of reciprocity, will not approve any loans to which substantial strings are attached.

At any rate, it is considered that if third nation currency-basis deposits are realized, China's ability for payment will increase, and that this will become a prop for expanding trade between Japan and China.

KS

TOKYO SHIMBUN (Full)

November 14, 1973

Dietmen's Mission to Be Sent to Arab Nations; Prime Minister's Instructions for Breaking "Oil" Crisis

Prime Minister TANAKA, at the meeting with Party Secretary General HASHIMOTO and Chief Cabinet Secretary NIKAIDO at the Prime Minister's Official Residence on the 13th, issued instructions, saying, "I want you to check into the sending of Dietmen, on a periodic basis, to Arab nations and developing nations in Africa." It is observed that this has stemmed from his intention of promoting his resources diplomacy, which has seen a quick upsurge with the oil crisis as the occasion, and at the same time, his intention of rising above postwar Japanese diplomacy, which has laid too much stress on the US and neighboring areas, including the ROK and Taiwan, and thereby, developing wide-range "Dietmen diplomacy," which will respond to the multipolarizing age.

KS

ASAHI (Full)

November 13, 1973

Energy to Be Secured by Making Atomic Energy Safe: New Chairman of
Atomic Energy Industrial Forum ARISAWA

New Chairman (Tokyo University Emeritus Professor) Hiromi ARISAWA of the Japan Atomic Energy Industrial Forum, which is trying to shift its physical constitution to a neutral, fair organ, prior to the Forum's first Standing Directors meeting held after his taking office to be held at Tokyo Kaikan Hall on the 12th, held a press conference and emphasized that "the only way for us to tide over the present energy crisis is to make atomic energy safe, for the time being."

In September last year, Chairman ARISAWA resigned from the Atomic Energy Commission he had been serving for 16 years. At the request of the Japan Atomic Energy Industrial Forum, which "wanted to stand on a national foundation," he became its new Chairman, an unusual appointment of a scientist. At the press conference held that day, he expressed his determination, saying, "I intended to quit a life connected with atomic energy. If I quit now, I will be a deserter from the front. Under these circumstances, I intend to devote my remaining days to securing energy for Japan."

According to Chairman ARISAWA, atomic energy is considered as energy of semi-domestic production. It is a promising pinch-hitter for oil. The question is that there is some uneasiness about its safety. On this safety problem, he wants to expand a dialogue on a nation-wide scale. Furthermore, as regards the present light-water-type reactor, he pointed out that as its thermal efficiency is so bad that even a warm effluent problem occurs, "it is necessary to make further improvement."

It is requested that . electric power of 60 million kilowatts be provided ' by atomic energy in 1985 under the AEC long-term project. In this connection, he stated, "With regard to the overall demand for energy in the future, I intend immediately to discuss with the AEC and MITI's Resources and Energy Agency how much of it can be met by atomic energy."

Centering on the establishment of an atomic power plant, the local residents' distrust in power companies and the Government is increasing. It is attracting attention that under such circumstances, the Atomic Energy Industrial Forum, the central figure in promoting such a plant, has greatly shifted its posture inclined to industrial circles to a neutral organ. Whether it is a real shift or a mere change of clothes "depends on the operation of the Forum's new structure participated in also by academic circles and representatives of local autonomous entities," as stated by new Chairman ARISAWA.

KO

SANKEI (Full)

November 14, 1973

Stable Supply of Oil Requested of Iran and Indonesia -- Government

According to a clarification made by a Government source on the 13th, the Foreign Ministry that day took procedures to request of the Governments of Iran and Indonesia, which are both oil-producing countries, through diplomatic channels, the securing of stable supply of imported crude-oil to our country. This is because the amount of oil imports to Japan from these countries, which are separate channels from OAPEC, has begun to decrease rapidly, recently, with the global shortage of oil as the background, and this is putting spurs on the "oil crisis" within the country.

MT

- 27 -

- 28 -

SANKEI (Full)

Eve., November 12, 1973

Will Not Approve Increase in Flights on International Lines Even after April Next Year; Transportation Ministry Firms Up Policy toward Air Schedule

Concerning the summer air schedule, which will start from April next year, the Transportation Ministry on the 12th firmed up the policy of not approving in principle an increase in regular flights on international lines. The Ministry will start to hold negotiations with various airlines, from the end of this week.

The Transportation Ministry decided to firm up such policies as (1) Restrictions on taking off and landing of planes at Haneda Airport (148 taking off and landing a day in the case of international lines) will be continuously carried out for fiscal 1974; (2) it is impossible for the Ministry to increase the number of flights at Osaka Airport because of an opposition movement started by the inhabitants living nearby; and (3) a decrease in domestic flights resulting from the induction of large-size planes will not furnish such room as to meet foreign airlines' request for an increase in flights.

The Transportation Ministry generally did not approve an increase in flights, for the reason that the frequency of taking off and landing at Haneda Airport has come to its limit and that the opening of Narita International Airport is in sight. Foreign airlines were expecting that domestic flights will decrease, as large-size planes are expected to be induced from April next year, and it will probably become possible for the Ministry to increase the flights on international lines by that amount, while showing their dissatisfaction at the delayed opening of Narita Airport.

According to the Transportation Ministry, various airlines are demanding that their existing flights be increased by 20 flights a week in total. Most of their requests for an increase in the flights are centered on the Southeast Asia line by airline companies in Southeast Asia. For this reason, the Transportation Ministry views that it seems to be able to do without approving an increase in flights other than Malaysian Airlines (Tokyo - Kuala Lumpur), demanding the opening of a new line.

However, the Ministry has the policy of approving a demand for shifting to large-size planes, including B-747 jumbo planes and DC-10's, as much as possible in view of the restrictions on the number of flights.

SA

SANKEI (Full)

November 14, 1973

US Secretary of State KISSINGER to Come to Japan Today

US Secretary of State KISSINGER will come to Japan aboard a special plane leaving Peking, some time past 1:00 p.m. on the 14th. He will immediately start talks with Foreign Minister OHIRA from 3:30 p.m. that day. According to a Foreign Ministry source, topics for the talks are expected to be narrowed down to three points -- the Middle East situation and the oil problem, the KISSINGER concept (new Atlantic Charter), and China policy.

MT