Chapter 2  Transport and International Society



2.1 Japan's Position vis-a-vis Transport-Related International Problems



   Japan's GNP has already reached 10% of the world's. If Japan is to enjoy stable economic growth for many years to come, it is necessary for this country to not only share the responsibility befitting its international status but also strive in a positive manner for harmonious development of the world economy.
   As the Japanese economy expands and interdependence deepens among the nations, internationalization is progressing in the transport sector, too. In order to ensure stable economic growth and better living standards for the people, it is necessary to formulate and pursue an adequate transport policy from an international point of view.


2.2 Future Direction of Ocean-Going Shipping and Reform of Semen's System



(1) International shipping order has been established mainly by advanced maritime countries under the "Free Shipping Principle," which calls for a minimum intervention by government. In recent years, however, some developing countries have intervened in their shipping activities and granted their vessels preferential treatment as part of the campaigns to develop their commercial fiesta. At the same time, these developing countries have been trying to reexamine the free shipping principle and establish a new shipping order. In the field of liners, the Convention on a Code of Conduct for Liner Conference was adopted in 1976, The developing countries have strongly requested at the UNCTAD and other international meetings that they be allowed to join in bulk transport operations and that the activities of ships filing figs of convenience be restricted. To counter these moves, Japan and other advanced maritime countries have maintained that it is the most efficient way for shipping activities to be left to the market mechanism and that this is also necessary for the development of trade by developing countries, most of them exporters of primary products. This is a sort of North-South problem in the field of shipping. Japan has been trying to solve these problems in a reasonable way at the UNCTAD and other international meetings in cooperation with other advanced maritime countries. At the same time, Japan has extended technical and other cooperation, including the formation of joint ventures, to developing countries so as to facilitate their shipping activities.
(2) In order to sustain and expand its economy, it is essential for Japan, a major trading nation, to maintain a stable and powerful commercial filet. From the standpoint of keeping the costs stable, of retaining a bargaining power over foreign shippers, and of national security, Japan is pursuing a policy of maintaining a certain tonnage of vessels of Japanese registry manned by national stamen.
Although it was braked by the ocean-going shipping emergency measures enforced from fiscal 1979 to 1981, a decline in the ratio of vessels of Japanese registry to the national commercial fleet has been evident in recent years. This ratio was still 56% in 1981 (Fig. 14).
In these circumstances, in order to maintain a certain tonnage of vessels of Japanese registry and further expand it, it is necessary to help Japanese vessels restore their international competitive power or to help shipping agents strengthen their business structure, so that they can have bottoms built on a stable basis.


2.3 Adoption of Sea Law Convention and Japan's Position vis-a-vis New Sea Order



   The 3rd U.N. Conference on the Law of the Sea ended its substantial deliberations, which lasted for nearly a decade, after adopting the Convention of the Law of the Sea in April 1982.
   This convention is an all-inclusive law on the sea and constitutes the backbone of a new order of the sea. Japan, a major maritime nation, is bound to be affected strongly by this convention and is compelled to deal adequately with a new order of the sea to be created under the convention, paying attention to national interests from a comprehensive point of view.
   Particularly in the field of transport, this convention is closely related to such matters as passage of vessels, ocean development, and the conservation of a maritime environment. In response to a new situation in which territorial waters are being expanded by coastal nations, Japan will endeavor to secure safe sea and air routes essential for shipping activities. At the same time, Japan will also promote in a positive manner such measures as the development of a maritime safety system, oceanographic surveys essential for effective utilization or development of the sea, and the conservation of a maritime environment.


2.4 Promotion of International Cooperation and Interchange



(1) International cooperation in the field of transport ranges from the development of railways, ports and harbors, and airports to automobiles, shipping, shipbuilding, seamen, maritime safety, and weather observations. International cooperation in this field plays a significant part in Japan's Official Development Assistance. It accounts for about 20% of total yen loans (Figs. 15 and 16).
Japan has received an increasing number of aid requests from developing countries. These include combined projects involving more than one type of industry, e.g., railway and port, such as the development of routes for carrying coal and other resources in China, a comprehensive survey for transport plans in Pakistan, and surveys for urban transport systems in Panama and Ecuador, and such large-scale projects as the construction of the 2nd Panama Canal. Since cooperation in these transport-related projects is quite useful in laying the groundwork for economic growth of developing countries, Japan will continue dealing adequately with these requests.
Since 1978, the Ministry of Transport has extended cooperation to the railway improvement project in America's northeastern area (between Boston and New York). The Ministry will continue extending technical and other cooperation to industrialized countries, including railway projects.
(2) The number of visitors to Japan in 1981 increased by about 2.4 times over a decade ago. However, this figure is still very small, compared with those of other countries (Table 14).
Many trade and other frictions with foreign countries in recent years have apparently stemmed from a lack of knowledge about Japanese life and cultural customs on the part of foreigners. In order to solve these problems and enable Japan to secure the position of a good neighbor in international society, it is necessary to enhance personnel interchange and step up efforts to enable foreigners to have a total view of Japanese industry, society, life, and culture today. While traveling abroad, Japanese tourists should strive to have local people learn about Japan. At the same time, the Japanese need to have an international view.
In international tourism, various systems have been developed to accommodate foreign visitors to Japan, including the home-visit or home-stay system and the installation of "travel phones." The Ministry of Transport will further develop such systems to enable foreigners to travel in Japan smoothly, as well as step up personnel interchange through youth exchange programs and industrial tours.


2.5 Problems Pertaining to International Aviation and Development of International Airports



(1) In Japan at present, two national air companies operate regular flights to and from 43 cities in 30 countries, and 34 foreign air companies operate regular flights to and from 71 cities in 30 countries.
During fiscal 1981, Japan held a total of 30 aviation talks with 16 countries. Of particular note is that a three-year provisional agreement was concluded with the United States through the talks aimed at resolving the long-pending inequality in Japan-U.S. aviation interests. Consequently, this problem has been solved for the present.
32 countries have requested that Japan conclude aviation agreements with them. Japan will deal with these requests giving consideration to bilateral political, economic, and cultural relations, prospects of demand for air transport in both countries, and hijack prevention measures enforced in the respective countries.
(2) International airports hold the key to the development of international air networks. The development of international airports in Japan is still inadequate, and this has caused various problems, such as Japan is unable to comply with foreign requests for new or increased regular flights due to restricted airport functions.
As Japan's front entrance, the New Tokyo International Airport needs to be further developed and expanded. In Phase 11 of its development program, a side-wind runway and a parallel runway, as well as other facilities, will be constructed to meet growing demand for air transport in the future.
In the Kinki area, the projected Kansai International Airport, usable 24 hours for both international and domestic flights, has to be built at an early date to solve the noise problem of the Osaka International Airport and to step up international interchange by dealing adequately with rising needs for air transport.


2.6 International Problems Pertaining to Shipbuilding and Automobiles



(1) As regards the international problem related to shipbuilding, Japan has been trying to enhance mutual understanding in the spirit of international cooperation through the OECD and other forums. In recent years, however, demand for new ships has remained on low levels due to the worldwide economic slump. Consequently, the shipbuilding industry is faced once again with a severe situation. It is concerned that an economic friction may intensify between Japan and European countries in the face of the current economic stagnation.
In the meantime, several medium-advanced countries have emerged as new shipbuilders, and their weight is rising steadily in recent years. For example, the Republic of Korea has developed into the world's second largest shipbuilding country following Japan. Shipbuilding is entering a new age of competition involving Japan, Europe and the newly rising shipbuilding countries (Fig. 17).
The international condition for shipbuilding has become increasingly severe and complex. In these circumstances, Japan's shipbuilding industry needs to lead the world in technological innovation and modernization of production technology, step up publicity efforts to provide other nations with accurate information about Japanese shipbuliders, and have constant dialogue with the newly rising shipbuilding countries, so as to play a leading role in improving the international climate.
(2) Against the background of imbalances in the trade of passenger cars and other goods between Japan and the United States and Europe, these countries requested in the middle of 1981 that Japan open its market more widely to their products (Fig. 18). In response to these requests, and as the first step to market opening measures, the Ministerial Council on Economic Affairs in January 1982 decided the "Improvement of Import Inspection Procedures," which included simplified examination and inspection procedures for passenger car imports.
In accordance with this decision, a nine-point program was enforced concerning examination and inspection procedures for foreign cars, weigh included the dispatch of inspectors overseas, acceptance of test results conducted by official testing institutes in foreign countries, the shortening of examination periods, implication of approval procedures for type de-stagnation, and the introduction of simplified handling procedures for small-quantity motor vehicles. These measures have been evaluated highly by EC countries.
Against the background of a sharp drop in American car exports to Japan in recent years, the United States still insists strongly on the adoption of a self-certification system, a request Japan cannot absolutely accept from the standpoint of safety and pollution prevention. In view of the fact that the costs of examination and inspection procedures account for only 4% or so of the selling price, it is appropriate to think that the sharp drop in American car exports to Japan is due to some other factors than the examination and testing procedures, such as the consumer's switching to compact cars to cope with rising gasoline prices. However, Japan will continue efforts to seek the understanding of foreign countries concerning Japan's market opening measures and deepen mutual understanding through patient dialogue.
In recent years, there have been active campaigns to set international standards for safety and pollution prevention. Japan will positively take part in these activities, since such standards are expected to help remove trade frictions in a long-term point of view.


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