Chapter 7. Change of International Climate with Regard to Transport


7. 1 Economic Cooperation with Developing Countries


   The Official Development Assistance (ODA), which constitutes the nucleus of Japan's economic cooperation with the developing countries, consists of technical cooperation and financial aid. The Ministry of Transport is involved in the following projects:
(1) Technical cooperation
   The technical cooperation includes the training of foreign trainees in Japan, the dis-patch of Japanese experts, surveys and cooperation for development, and the supply of equipment and materials. Fig. 9 shows the development surveys conducted during fiscal 1980. (Development plans are worked out, and their feasibility confirmed, at the request of developing countries for their regional or social development.)
(2) Financial assistance
   Fig. 10 shows the financial assistance extended during fiscal 1980 on a gratis basis. Most of the funds were used to purchase buses, trucks, and boats for fishing surveys and training. Fig. 11 shows the financial assistance extended during fiscal 1980 on an onerous basis. It covered a total of 24 projects, totaling ¥179.3 billion, including 5 modernization projects in China and 3 projects in Indonesia.


7. 2 Promotion of International Understanding through Tourism


   In future tourism, greater emphasis will have to be placed in the promotion of international understanding rather than earning foreign currencies. Mindful of this, the Ministry of Transport plans to promote international tourism through the following measures:

(1) A general picture of present-day Japan to be given through unified campaigns in foreign countries;
(2) Heart-to-heart contacts with foreigners to be promoted through the home-visit and home-stay systems and the establishment of international community centers:
(3) "Travel-phones" to be set up, and guide books published, for foreign visitors to enable them to travel in Japan by themselves as far as possible.


7. 3 Future of Oceangoing Shipping


   Oceangoing ships of Japanese registry manned by Japanese seamen have had their international competitive power weakened in recent years in the face of rising costs. While the size of the Japanese merchant fleet expanded as a whole, Japanese-flag ships began to shrink numerically after a peak in 1972 and in terms of tonnage in 1976. The Japanese merchant fleet has strengthened a tendency to depend on chartered foreign vessels. (Fig. 12)
   The Japanese fleet has played a vital role in the stable transport of energy and other resources as a key industry constituting the basis of the national economy. Moreover, the Japanese fleet is expected to undertake a very important task of carrying alternative sources of energy like LNG, coal, and LPG, whether in peacetime or in emergency. It is therefore desirable that at least the present hauling ratio should be maintained. This means that Japan will have to have about the same size of fleet in 1985. It is necessary to pay greater attention to shifts to energy-saving, highly automated ships.


7. 4 Reform of Seamen's System


   The international climate surrounding Japanese seamen has undergone a major change in the following aspects:
(1) Competitive power of Japanese-flag ships on the decline
   The competitive power of Japanese-flag ships has sharply gone down because of increasing costs, including personnel expenses. To cope with this situation, the shipping industry has been endeavoring to use automation technology as far as possible, including the development of an M-zero ship with an unattended engine system. Despite these efforts, however, the dependency of the shipping industry on chartered foreign vessels is rising. As a result, the number of Japanese seamen on oceangoing routes has continued decreasing from 48,000 in 1968 to 38,000 in 1980. (Fig. 13)
(2) Demand for seamen of better quality
   International demand for seamen of better quality has grown following a series of stranding accidents involving tankers, and this question was discussed by the IMCO (Intergovernmental Maritime Consultative Organization). As a result, the International Convention on Standards of Training, Certification and Watchkeeping, 1978 (the STCW Convention) was adopted by the IMCO.
   To cope with above-mentioned situation, it is urgently necessary to modernize the present seamen's system or establish a new system capable of meeting with technical innovation in vessels and of making the most of the ability of Japanese seamen.
   The Ministry of Transport has entrusted an ad hoc commission with the task of studying a way to modernize the present seamen's system. In 1980, this commission presented a "provisional image of seamen," envisioning a new management system that unified the conventional lengthwise division of assignments, including the, deck, engine, and wireless sections. Thus the work on the reform is progressing smoothly.


7. 5 Future of Shipbuilding


   Faced with the slow growth of the world economy and the unstable energy situation, the shipbuilding industry can hardly anticipate any spectacular performance in the foreseeable future. (Fig. 14)
   Japan's shipbuilders are expected to have precedence over foreign competitors with regard to the price and quality of their products in the years ahead. In order to continue their operations on a sound and stable basis in the future, it is important for them to find a way to promote international cooperation as well as strengthen their international competitive power. To achieve that end, Japan has to develop and build various types of ships using new technology, including energy-saving, super-automated vessels, and those navigable in icy waters, while endeavoring to expand the application of shipbuilding technology to other areas. At the same time, positive international cooperation has to be promoted on both governmental and private levels.


7. 6 Japan's Position vis-a-vis Automobile Issue


   Japan's automobile exports to the United States and Europe have raised a major international problem in recent years because of the disparity in trade. (46,000 units were imported into Japan in 1980, and 3 million 947,000 units were exported from Japan.) The United States and Europe request that Japan open its market to their products and restrict its export to them quantitatively.
   Through consultations held between Japan and the United States, Japan and Europe, since the beginning of 1975, there have been increasing numbers of requests for improvements in the inspection procedures of imported cars. Japan has complied with these requests wherever possible, and most of the issues have been resolved up to now.
   Japan has taken the following actions in this regard:

(1) Inspectors have been dispatched to the United States and Europe to conduct on-the-spot inspections.
(2) Results of the examinations made by public organizations in Europe have been used in Japan for the inspection of imported cars.
(3) Results of the examinations whose standards are equal with or above Japan's have been accepted.
(4) Japanese laws and regulations related to automobile inspection procedures have been translated into English and liaison offices have been opened in the United States and Europe.

   Recognition has increased among the nations about the necessity to unify the standards and certification systems with regard to automobile inspection. At present, ECE-WP29 (Economic Commission for Europe-Working Party 29) is playing a pivotal role in this work. It is necessary for Japan to strive to unify the standards of automobile inspection in cooperation with other countries concerned.
   Japan's automobile manufacturing technology with regard to the prevention of public nuisances has won such high international recognition that increasing numbers of requests for technical cooperation have been made from developing countries where motorization is fast progressing. It is necessary for Japan to deal adequately with these requests and promote international cooperation.


7. 7 Trend of lnternational Aviation


   International aviation has been making steady progress along with the development of the world economy. The aviation industry, however, faces such difficulties as a tendency of excessive capacity caused by the introduction of large-size aircraft and equipment, stagnant demand for passenger transport, and soaring fuel costs. (Table 14)
   Japan being a major demand-creating nation, there is increasing demand from other countries that Japan permit more airlines to fly in, or increase their flights to Japan, or introduce large-size aircraft.
   The present situation of aviation talks with other countries is as follows:

(1) An air agreement was concluded with Finland in June 1981, bringing to the 36th country having air agreements with Japan.
(2) Talks on a comprehensive revision of the Japan-U.S. Bilateral Air Transport Agreement are continuing with the positions of the two countries still remaining wide apart: the United States demands a substantial liberalization in Japanese aviation policy, while Japan calls for the elimination of inequalities in aviation rights and interests between the two nations and demands a construction of orderly aviation market with avoiding harmful effects by excessive liberalization.


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