UNIT 10 FOREIGN POLICY Ob JAPAN

Structure
10.0 Objectives
10.1 ~ntroddction
10.2 Foundations of Foreign Policy in Modern Japan
10.2.1 Basic Objectives of Japan's Foreign Policy
10.2.2 Japan's Foreign Policy Before World War 11
10.3 Making of Foreign Policy and the Role of
Parliament
10.3.1
Ministry of Foreign Affairs
10.3.2
Ministry of International Trade and Industry
10.3.3
Political Parties
10.3.4
Interest Groups
10.3.5
Public Opinion
10.3.6
External Factors
10.3.7
10.4 Japan's Defence and Security Concerns
10.4.1 Defence and Security Policy
10.4.2 Strength of Japan's Defence
10.4.3 Constitutional Limits
10.4.4 Defence Budget
10.4.5 Importance of National Security
10.4.6 Regional and Global Security
10.5 Japan's Foreign Relations
10.5.1 India and Japan
10.5.2 Japan: North America and European Community
10.5.3 Newly Industrializing Countries
10.5.4 Japan, Former Soviet Union and China
10.5.5 Japan and Developing Countries
10.6 Japan and the United Nations
10.7 International Exchange and Cooperation
10.8 Let U s Sum U p
10.9 Key Words
10.10 Some Useful Books
10.11 Answers t o Check Your Progress Exercises

10.0 OBJECTIVES
The objectivc of this unit i\ to hclp cou understand the undcrlyinp importance
of economic factors in making and applicatio~lof Japanesc foreign policy. I t also
brings into focus the various prioritic3 and problems that Japan encounters while
implementing thc foreign policy. 'I'hcrci11tc.r. it brictly introduces you t o Japanesc
attempts made towards removing global incqualitics by promoting both bilateral,
regional and glob;l order. development and pcacc. After studying this unit, you
will be in a position to:
trace the historical background yf Japan's foreign policy ,
explain the formulation of Japan's foreign policy and role of various agencies
in the same
assess the main character of Japan's f o ~ e i g npolicy as well as defense And
security policies.

10.1 INTRODUCTION
Today Japan is in a very influential posit~onin the W S I I I . 130th advanced as well
as developing countries hove to improve their relafluni \\ ith Japan They expect
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 Japan t i provide capital and technology. Meeting developmental challenges and Foreign Pdky
solving international complex political and economic problems is a great challenge
to Japan.
The pace of Japan's economic growth in the last few decades is difficult for many
to understand. Since World War I1 Japan has viewed geoeconomic rather that
geopolitical influence as the most important source of power in an increasingly
interdependent world political economy. However, much Japan may classify its
policy as independent, still its foreign policy has a great deal of American influence.
The one glaring visible factor in Japan's foreign policy is its democrating economic
content. To some extent Japan did succeed in diversifying its foreign sources of
markets, energy and raw materials widely. At the same time these sources became
dependent on Japanese goods, services, technology and capital.
Making and implementing foreign policy with a strong geoeconomic factors for a
long-term is a difficult exercise for Japan. T o provide you a better understanding
of Japan's actual foreign relations, for convenient reasons some regions and
countries are selected, and introduced. Also introduced to you in this unit is how
Japan conducts multilateral relations i.e. through the United Nations by participating
in many of its bodies and programme.

10.2 FOUNDATIONS OF FOREIGN POLICY IN

MODERN JAPAN
In terms of modernization and industrialization, what the West taught Japan and
Japan adopted from the West is indeed impressive. From the recorded account
i of 20th century, the following events become clear:
a) In 1900s. Japan brought Western imperialism to a halt in East Asia by defeating
Russia, which was then a Western power,
b) In the 1920s, world trade that was largely dominated by Western countries
was challenged by Japanese products copied from Western products and sold
at cheaper prices, .
c) In t h t 1940s, Japan terminated Western colonialism in this part of the world
by attempting to build its own brand of colonialism,
d) In 1960s, Western technological superiority was challenged by imported
technology which w'as improved to meet world market'expectations,
e) In 199[k, by becoming No. 1creditor country in the world, Japan put anend
t o Western financial hegemony.
These achievements appear 'to be remarkable as well as. phenomenal for
transformationof Japan itself. Considering its achievements at home and influential
. position in the world many developing wuntries expeciJapan to play a significant
role in meeting development challenges as well as solving complex international
political issues. Therefore, understanding Japanese foreign policy becomes very
important today.
Two sets of circumstances that define Japan's basic position in the world are:
(a) geography; conditioned by history and the prevailing stage of technological.
development, and (b) resource endowment and needs, conditioned by the effective
political demands and expectations of the Japanese people. These circumstances
cause Iapaneae government to reflect seriously on the possible implications of
their position and on foreign relations in both regional and international terms.
In evaluating Japanese foreign policy issues, it is necessary to keep in mind these
I geopolitical and geoeconomic factors as well as national security and of resource
scarcity factors with its related economic consequences,

10.2.1 Basic Objectives of Japan's Foreign Policy

'The basic objective of Japanese foreign policy is to contribute to world peace
and stability and to a harmonious progress of the entire international community.
Japan claims: . Content Digitized by eGyanKosh, IGNOU
 i) its basi . lorelgn pollcy has been tcmllowed w~thoutprcj~da:~+.
r t , til<

country s friendly and cooperative relations with the Western sfun*r),.~.,!

ics.
ii) it is important to maintain and further promrjte its trad~tior:,?lr-.f.;t!os,. ,d
friendship with its neighbours in Asia;
iii) its close and abiding relationship with the United States, in p;irticular IF t i t e
cornerstone of its forelgb policy,

10.2.2 Japan's Foreign Policy Before World War II

For Japan, the 19th century was a period of struggle against ~ o u r ~ i r i zassumed
s
to be hostile and ready to attack. Therefore, it was natural for i h e Meijl
Constitution to stress the right of the military. From the start Japanese diplomats
laboured under the difficulty of foreign language, particularly E:~glish $?id other
barriers like Japanese social customs. Besides Genro. army and foreign trx3e
interest groups influenced the decision-making and foreign p o l i c ~making. Often
this led to a lack of communication with other countries in the course of negotiations.

The foreign ministry was a changing institution which went through v a r i o ~ phases
~s
of development. Up t u 1890s a professional service had scarcely been formed.
Recruitment was haphazard and career development uncertain. By 1890 and after
a professional service had'been emerging and there was a uniform quality t P entraiies
For the next 40 or so years, from this service came the Japanese foreign minisless.
As elsewhere, in .Japan also in the 1920s the ministries of dei'ci7s.- ::r-rd $r.--.de
became more important and influential than the foreign rninislry. Mliitary was
specially well placed to challenge the civilian government. As military becannc
more influential, the standing of diplomats in society accordingly declined. Once
the most popular General called Tojo remarked that "the foreign ministry should
confine itself to observihg protocol and giving parties to foreign diplomats and leave
the real decisions to men with practical knowledge of affairs, namely. !he ;~rmy'-
How to sustain a ministry that was declining in importance and how to cope with
the challenge of the military were main concerns. Neither professionalisrts nor
seniority counted for promotions. This resulted in diverse responses to t'he prol-blcms
of expansion and dealing with military. In 1940s major work of foreign ~ninistl-y
was to perform mopping up operation for the work of military. 1nheritit:g sitn:atiom
that were not its swn creation, the foreign ministry was expected to resolve them
diplomaticallly and sustain good relations with foreign countries. Outside powcrs
had little confidence in the Japanese voices for peace. Such great leaders associated
with foreign ministry like Shidehara, Tokugawa Iemasa and Shigeru Yoshida
proclaimed their distaste for Japan's foreign policies and resigned.
The foreign ministry exists largely for the formulation and implerrler~tiiticjlacaf
foreign policy. Japan's foreign policy over the years has tended to be hardheaded
and materialistic rather than altruistic or ideological. There were many ideologies
which the individual foreign ministers tried to impart to Chinese or A-'.>lans,
However, the following are continuing factors in Japanese foreign relations - not
fundamental but superficial: economic and commercial, to obtain access to scplbltr:~,
of raw materials and remove obstacles in'the way of a profitable overseas trade,
defence, to secure Japan's own shores from attack and to prevent the occirpstion
by hostile countries, to remain on good terms with other countries xnd, where
appropriate, to join international bodies and thus improve Japan's prestige among
other countries.
Before World War 11. there was continuity in Japan being harsh towards China,
in Japan being expansive on the Asian mainland and Pacific area.
Though expansion overseas was an important factor in Japan's forelgn policy, yet
it was not a continuous and uninterrupted theme. From 1870s to 1920s the
consensus among the foreign policy makers was 'Join Europe and ignore Asia'
Butfbythe 1930s it was changed for 'Joining Asia and being vigileni for Western
opposition'. But by 1942 when Japan became a very expansive power, its expansicn
had been haphazard and disorderly. When the military agencies were destroyed
in the battle, the foreign ministry emerged into the postwar era.
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 for both its doniestlc and foreign policies. Western Europe and the United States
to a lesser extent, provided such a model for pre-war Japan. Japanese endeavoured
to 'catch up' with the model and even surpass it. Modernization was equated
1 with westernization in the minds of most Japanese. But in the post-war period
the United States has been the only country that served Japan as a model.
Particularly in the areas of defence and foreign policy, the Japanese government
i
I has continuously followed the leadership of the United States. Having surpassed
1 the advanced western countries in technology and Gross National Product (GNP),

i
quality of life, the West no longer provides a valid model to emulate. The need
for Japan now is to create its own vision and decide what role should it play to
contribute to world peace and development.

I! Check Your Progress 1

Note: i) Use the space below for your answer.
ii) Check your answer with the answer given at end of this unit.
1) What factors are important to understand Japan's foreign policy?

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: 2) Name two major achievements by Japan in last 30 years.

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3) Mention the basic objective of Japan's foreign policy.

4) What .are the superficial, continuing factors in Japan's foreign policy?

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10.3 MAKING OF FOREIGN POLICY AND

ROLE OF
During the occupation period (1945-52) the authorities introduced a series of.
reforms to democratize Japan through political and Constitutional changes. Since
then such segments of Japanese society like the parliament (Diet), political parties,
pressure groups and bureaucracy take part in the process of making Japanese
foreign policy.

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J;ltpl. 10.3.1 Parliament
Foreign policy is an act of sovereignty and decided by people through their elected
representatives in parliament. To become effective, all treaties to which Japan is
a party, need the approval of the Diet. The existence of Standing Committees
strengthens its role in the decision-making process. On the basis of relative strength
of political parties, composition of committees and its leadership is decided. By
far two important committees related directly with foreign policy making are:
(1) Budget Committee and (2) Foreign Affairs Committee. Through its power to
decide the budget allocations to foreign ministry, the budget committee attempts
to influence the foreign policy making. The discussions of the foreign affairs
committee are many and varied relating to important diplomatic issues. These
committee reports are further deliberated and voted in the House of Representatives.
Naturally, it is the majority ruling party that gets the committee headship, influences
policy making, votes the proposals and thus wields enormous influence in formulating
Japan's foreign policy. Opposition parties, after studying the proposal. depending.
on the situation, remrt to criticising the ruling party, vote against the proposal i
or even boycott voting. And the proposal gets passed with voting by the ruling
party members. It is also possible for members of parliament with commonality I

d views to form groups and bring pressure on government to follow a particular I

plicy line or to change a continuing policy. Because of practical difficulties, often
st a not possible for opposition party members to obtain minute technical details
of the proposals and thus fail to carefully examine, and formulate viewpoints and
positively influence the discussions.

10.3.2 Ministry of Foreign Affairs

In gathering information about the external setting in which Japanese foreign
policy has to operate, the foreign ministry plays an important role. However, in
the actual process of making policy, it is the political leadership that is much
more influential than foreign ministry officials. While the fortune and importance
of foreign-ministryvaried greatly before World War 11, in the post-Second World
War period, other ministries like Ministry of International Trade and Industry
(MITI), for example, have also become very influential in Japan's foreign policy
making. The increase of transnational activities has also given rise.to a greater
Japanese participation in private and non-official international organizations, which
'have a beneficial effect in trying to bring people ciivarious nationalities together.

10.3.3 Ministry of International Trade. and Industry (MITI)

,Policies related to international trade are the exclusive preserve of MITI. In the
#administrationof international economic pollcy MITI and Foreign Ministry cooperate
despite some differences between them. MITI is a powerful economic planning
and regulating body but it is not all powerful. It functions within a framework
d numerous competing agencies and interests. MITI's basic powers rest on Diet
ienacted statutory authority. This authority is exercised generally indirectly through
benuasion, advice and inducement. Because of its small budget and relatively less
bureaucrats and great achievements, il commands both criticism and appreciation.
Being resource-deficient and highly industrialized, Japan's dependence on
international trade is related to its very existence. Given Japan's history as a
brading nation, importance attached to MITI and its authority is understandable.
MITI transfers its officialsoften to foreign ministry, Japanese embassies abroad,
pninistry of finance and other ministries. Since Japan's foreign policy is seen.-as -
Llapan's foreign economic policy, MITI's role in providing inputs to foreign policy
1s very important and d far successful also.

20.3.4 Political Parties

Generally, it is the ruling party that assumes a great responsibility and power to
determine foreign policy. Based on the principle of majority, all decisions made by
Ihe ruling party become policies of Japan. But sometimes factions within the
ruling Liberal Democratic Party and the relative strength of opposition parties
make the difference. Then, it is the consensus approach that come to rescue the
policy, and the credit when the proposal gets passed, go to all cooperating factions.
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 When 'opposition parties simply overcriticize government poliaes, t h e ~ rpolicies
have no chance.

All important parties have set up foreign affairs divisions which carry out study,
research and planning of policy. Usually there exist lobbies within government,
parties and factions that work and influence policy of the government. For
p example: A strong US lobby exists in most Japanese parties. Similarly, China
lobby and Korea lobby were active at different times.
The Prime Minister is centrally important to the foreign policy making process
because of his constitutional position as the chief executive of the government.
This function has been enhanced in recent years through the strengthening of the
Secretariat to the Cabinet. As a result the number of parliament members
pcirticipating in foreign policy related meetings of the LDP has increased. Many
foreign policy issues are now discussed in relevant LDP committees: Political
Affairs Research Council and International Affairs Division.

10.3.5 Interest Groups

As in purely domestic economic issues, the leaders af the major economic
organizations can exercise considerable influence on foreign policy making.
However. their influence tends to be overestimated abroad. The interests of
business. industry and finance enter the decision-making process through
consultation bodies attached to various ministries. Groups with varying interests,
size and strength have become very active and influential since World War 11.
Protecting interests and advancing through pressure are the main concerns af
these groups. It was Zaibatsu (family based big financial groups with varied
business interests) which were important economic interest groups before World
War 11. However, in period since World War 11. the most influential interest
groups at the national level are:
The Federation of Economic Organizations.
The Committee for Economic Development.
The Japan Chambers of Commerce and Industry,
The Council on Industrial Policy.
The,role of the government is to coordinate various domestic economic interests
and to protect greater national inkrest from particular economic interests.
Besides. foreign policy making is also influenced hy the activities of trade
associations. regional economic organizations, bilateral friendship societies etc.

10.3.6 Public Opinion

Growih of mass media and 100% literacy in Japan have mide Japanese citizens
awarc of pcncral information ahout contemporary interfiational affairs. This has
Icd to a growth of strong and articulate public opinion. Whether it is Japan-US
bilateral relations. or sending Japanese defense personnel overseas to participate . .

in U N pcacc kecping efforts or cvcn allowing an increase in Jacanese military

expenditure - the general public can organize massive demonstrations, collect
millions of signatures and impress policy makers to change their course of thinking
or halt a policy ainendment successfully. Also among the bureaucrats such officials
exist in Japan who tend to think that "diplomacy cannot be guided by domestic
public opinion that are not formed on the basis of reliable information about
critical diplomatic problems".

10.3.7 External Factors

Among cxtcrnal factors. it is the United States which has been able to exert
maximum pressure on Japan to adopt a particular line of action in foreign policy
matters. Most.of Japanese foreign economic policy matters are directly or indirectly
influenced by both positive and negative external factors. Positive factors were:
Korean war. Vietnam war while negative factors were: Nixon shock, oil shock
and so on. Thus. japan's foreign policy is yet fo come out of US protective shell.
rhus. cach segment of Japanese government and society like parliament. foreign

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Jam ministry, MITI, political parties, interest groups, public opinion has a role in
influencing the making of Japanese foreign policy.
Until 1970s the relative insulation of foreign policy from public concern had
allowed a smooth aggregation of national interests and required only a minimal
response to outside demands. However, in the 1980s Japan's increasingly prominent
position in the global economy and the rapid changes in the international
environment have made such minimal responses less acceptable.

Check Your Progress 2

Note: i) Use the space below for your answer.
ii) Check your answer with the answer given at the end of the unit.
1) Name important offices/ministries/agenciesinfluencing the making of
Japan's foreign policy.

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2) What is MITI?

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3 ) Why is Prime Min~sterimportant in forc~gn~ ~ ) l l cmakrng?

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10.4 JAPAN'S DEFENCE AND SECURITY CONCERNS

10.4.1 Defense and Securitj Policy
The Japanese defense policq is hascd on trio. malor government dec~slonh.Thc
Basic Policies for National Det'ensc ot' 1957 and the National 1)ctcnse Program
Outline ot 1976.
. Thc ohjet'tivc of n:rtional dbt'cnw i3 t o prc\~mtd~rcctand indlrect ,ipgrc-i\m. 'tnd
once invaded. to repel such aggrcsion to preserve the lndependencc' and pcace
of Japan.
To achieve this objective. the pwernmcnt of Japan has e\t,rhlt\hcd the folloa~ng
four principles :

a) to support thc activitic4 c,f the L'nited Nations. an(: prclmc~tt.international

cooperation. thereby contrihut~ngto the realization ot world peace.
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 'b) to stabilize the public welfare and enhance people's love for Japan, thereby
establishing the sound basis essential to Japan's security,
c) to develop progressively the effective defense capabilities necessary for
self-defense with due regard to the nation's resources and the prevailing
domestic situation.
d) to deal with external aggression on the basis of the Japanese-US security
arrangements, pending more effective functioning of the United Nations in
the future in deterring and repelling such aggression.
The National Defense outline is intended to provide greater flexibility for
administration, upgrading, and operation of the Japan Self-Defense Forces in
responding to any major changes in the domestic or international situation and
to provide for a smooth transition to a hightened state of defense preparedness
in such an event.

The Constitution of Japan embodies the ideal of pacifism, and Article 9 is an

explicit renunciation of war. Yet, this does not deny Japan right of self-defense
as a sovereign nation. As long as this right is not denied, Japanese government
believes that the Constitution does not forbid maintaining the necessary minimum
military strength. Thus Japan has been maintaining its Self-Defense Forces (SDF).
I
As regards nuclear weapons, Japan holds'firmly, as a policy, to its three non-nuclehr
principles of non-possession, non-manufacture and non-introduction of nuclear
weapons to Japan.

1014.2 Strength of Japan's Defence

In Japan, the Army, Navy and Air Force come under the name of Ground,
Maritime and Air Self-Defense Forces. They are sign~ficantin their size and
capabilities. With one of the highest defense budgets In the world, Japan has
:produced a sizeable military power - a combination of technical sophistication
and efficiency matching best countries in the world. Japan's rearmament is taking
place under the Amer~caninfluence. There are also 45,000 American troops in
Japan. plus 1 19 American bases, and Japan is the home base for the US Seventh Fleet.
The Ground Self-Defense Forces - GSDF - has 1,55,000 personnel, with
additional 43,000 in reserve. It has 5 regional Commands.
The Maritime Self-Defense Forces - MSDF - has44,OOO personnel, 600 in reserve
and bases at Yokosuka, Kure. Sasebo, Maizuru and Ominato..
The Air Sclf-Defense Forces -- ASDF - has 46.000 personnel.

10.4.3 Constitutional Limits

Article 9 of the Japanese Constitution states "Aspiring sincerely to an international
peace based on justice and order. the Japanese people for ever renounce war as
a sovereign right of the nation, and the threat or use of force as a means of
settling interniitional disputes. To accomplish these. land, sea and air forces as
well as other war potential will never be maintained. The right of belligerency
of the State will not be recognized"
Believing this docs not dcnv Japan its right to self-defense, a substantial build
up and inaintcnance of forces'are allowcd.
Thc,credihilitfof thc SDF's hu~nanitariitnrolc is in search and rescue operations
and disaster rclicf is well estahlishcd. There have been attempts and influences
to amend the Article 9 of thc Constitution.

10.4.4 Defence Budget

Defense as a percentage of GNP fails to reach 1 per cent by a fraction always,
using the Japanese m'ethod of calculation. This is misleading because the method
of calculating is different from NATO method. If SDF pensions are included,
then the Defense percentage of GNP easily crosses 1 per cent. Since 1985 a
sig~iificn~~t
. I , . ,. I ' . ~ , , . .- .. .
boost has hecn givcn to rqscarch :tnd development related to military Content Digitized by eGyanKosh, IGNOU
 expenditure. how much Japan needs to spend when it has officially renounced
belligerency as a mcans of settling international disputes is still uncertain.

10.4.5 Importance of National Security

Various forms of aggression which threatens Japan's security are conceivable
depending on the international situation at any given time. These ~ncludedirect
and indirect aggression. Therefore, as a major trading country in Asla and world,
' Japan's national security is very important. Japan seeks to achlevc t h ~ sby
cooperating UN activities for peace and safety, contribut!ng to pol~t~cal and
economic development of the world and continuing efforts towards drsarmament.
Japan makes self-reliant efforts to maintain a defense capah~l~tddequate for
deterring and dealing witb .ression. Also firmly maintams tht (. S-Japan security
arrangements and ensureb their smooth and effective implementation.

10.4.6 Regiona: Global Security

Becavse of its declining politico-military capability and domestic economic, social
and other constraints, the United States of America i> not expected by many
Asian and other countries to provide order and security. Thus most countries in
the regions of Last and South-East Asia are looking towards Japan for an
important role. None of the Asian countries want Japan to acquire nuclear
weapons. However, Japan's security role in South-East and East Asia is acceptable
with two principal conditions: (a) that it be played within the framework of its
security relations with the United States, and (b) the concomitant military build-up
be undertaken in regular consultation with its fr~endsin the region. Still. Japan
is undecided and thus unclear about its security role in the region. However, at
the world level Japan seeks to work for peace and stability through economic
cooperation and by supporting UN activities.

Check Your Pm&ess 3

Note: i) Use the space below for your answer.
ii) Check your answer with the answer given at the end of the unit.
1) What are the basic source of Japan's defense policy?

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2) Name the immediate objective of Japan's national defence.

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3) How Japan intends to deal with external aggression?

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6
! 4) What are the three branches of Japan's Self-Defense Forces?

10.5 JAPAN'S FOREIGN RELATIONS

k
Since World War 11, the economic development of Japan has affected the pattern
1L of its foreign relations. The principles cif economic complementarity have had to
be compromised for political, legal, cultural or ideological reasons. Japan's foreign
relations have been overshadowed by the adjustment problems in the process of
integration of its domestic economy with the world market. Japan's post-wareleaders
also realizedihat without a strong economic base there could be no political power.

Japan's economic effort took precedence over all other considerations and issues,
and thus foreign policy and foreign relations became equated with foreign economic
policy and foreign economic relations:
Without military might or territorial ahbitions Japan reemerged in the arena of
international relations as an almost exclusively economic power. Its economy grew
at a phenomena rate from the mid-1950s ukil the oil crisis of 1973. Even after
1973 Japan's overall economic performance was much better than that of the
other industrial nations in the West. Japan's transformationfrom a semi-developed
state to technological power is a rare event in world economic history.
The management of a rapidly growing industrial nation with little dbmedic nat"ral
resources required maintaining regular perfect access to overseas markefri tp s stain ,
the dynamics of internal economic activity. 'Export or perish' has been its slo[~ r
as proved by the 'structural properties of its economy.

10.5.1 India and' Japan

Relations between India and Japan are those betwecn two uncqu;rl powers. lndia
has never been on Japan's priority list to deal with. Japan is a member of Western
Alliance whereas India is a non-aligned country. Japan's foreign policy has a
strong influence of United States, and till recently Japan considered India ar a
close friend of former Soviet Union and therefore Indo-Japanese relations were
confined only to economic field. Now, in the changd~circumstances,Japan needs
toshed its earlier stances and assclciate with South Asia in general and lndia in
particular. With its strength in capital and.technology Japan can play a significant
.development role in India.
As India has greatly lihcializcd its emnomic policy, the earlier complaints of
Japan are no more valid. Japan is trying to assess the changed situation in India
and is thinking of investing to the tune of $2 billion. In thc ncilr futurc cven a
'Japanese industrial township' in 1ndi;r may be sct up. There is greilt hope in
Indo-Japanese joint ventures both in public and private sectors. Some of the .
popular Indo-Japanese industrial collaboratrons are the following:

Automobiles
Manti Suzuki, Hero-Honda. DCM-Toyota. Swaraj-Mazda, Eicher-Mitsubrshi,
TVS-Suzuki, and Escorts-Yamaha

Consumer Electronics
Videocon-Matsushita,Wcston-Hitachi. BPI.-Simyo. 0nitl;l-JVCnnd i(alynni-~harp.
Besides, there are a number'of components-makers both in tlutomohiks ils well
as electronic areas. Content Digitized by eGyanKosh, IGNOU
As a developing country lndia needs greater access to ibtemauonal capital markets.
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Japan with its high current account trade surplus and shift towards knowledge
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intensive industries, can transfer its technology and capitai as well as relocate
gradually some of its industries into India.
Japan is a big exporter, trader and a.world power, and India is no match. India's
only advantage is its cheap labour, as well as a huge domestic market. 'k . ,

India's exports to Japan include iron ore, some engineering goods, agricultural
goods, food items (chutney, tamarind, gaurd gum, fruits, edible nuts), textiles,
leather and leather goods, gems, and jewellery. India's imports from Japan mainly
i
consist of machinery and equipment besides synthetics. i
Though India and Japan have different geographical, political and historical I
backgrounds, there exist bilateral agreements between them in the fields of trade, 1?
shipping, aviation, science and technology. i
A central lesson that lndia can learn from Japanese experience is the imperative
of evolving and applying, with .great tenacity and hard work, a strategy for
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technological development as an integral part of societal development programme.

10.5.2 Japan, North America and European Community

Japan's relations with the United States evolved in the context of the close
political, economic and military ties between the two countries since World War 11.
But in the recent years relations have been strained by the persistence of a large
bilateral trade imbalance in Japan's favour. While ttle US plays the role of a
, supplier of primary goods to Japan, Japan is exporting large quantities of
' manufactured goods to US market. Some Japanese argue that Japan should
become a military power commensurate with its economic strength and should '
persue a foreign policy independent of United States. However, Japan is
strengthening its Western-American-alliance instead of abandoning it. Besides,
strengthening Japanese solidarity with Western natlons always means close
cooperation with the United States. Thus, American considerations have always
dominated post-war Japanese foreign policy csl~.:ulations.Also Japan-US Security
Treaty has become the cormerstone of Japwe,r foreign policy. Japan is participating
in the United States Strategic Defense !nil rtive - SDI program. The bilateral
defense technology agreement of 1983 pro *c'r~the framework for Japanese
involvement in this project.
\ \'
Japan's relations with Canada is less strail d because of the absence of a
conspicuous trade imbalance, the small si-e of the Canadian market, and the
basic complementarity between Japanese manufactures and Canadian natural
resources.
Such Western Europe and Japan are highly industrialized and resource poor. The
European Community constitutes to be a large, attractive market for Japanese
exports, while it offers few primary goods of great imporlance to Japan. Japan
often attempts to diffuse European complaints about Japanese trade practices and
to improve Japan's image in Europe.

10.5.3 Japan and NICs

Korea and Taiwan both former colonies of Japan, offer different pictures.
Korea-Japan relations have been greatly conditioned by colonial legacy, geopolitical
constraints and military-stratkgicconsiderations rather than by economic rationality.
Japan the status quo of a divided ~ o r i a In, as mush as either of the
alternatives - unification of North and South Korea or conflicts between the
two - poses a threat to Japan's economic welfare and security interests. Recently
there is some improvement in Japan-South Korea relations. There was a deadlock
on negotiations regarding an economic aid-package. The then ,Japanese .Prime
Minister Nakasone Yasuhiro visited South Korea in 1983 and agreed to provide
4 billion worth of assistance.
Taiwan and Japan, caught by one-China policy of the People's Republic of China,
lost their formal diplomatic connection but still have pragmatically managed to
sustain growing and close; commercial relations. Content Digitized by eGyanKosh, IGNOU
 10.5.4 Japan, Former Soviet Unioa and China
Relations between Japan and former Soviet Union were in poor shape and showed
few signs of improving. Fears of security threat from former Soviet Union led
Japan to reassess its security relationships and also to.consider more seriously
than in the past the regional aspects of its defense. When Mikhail Gorbachev
was in power, there had been a series of diplomatic overtures from the Soviet
Union to improve relations with Japan. But Japanese government remained
suspicious of Soviet peace offensive. Soviet peace strategy did not succeed as
long as Japan demanded the return of disputed northern territories. However,
breakup of former Soviet Union into Commonwealth of Independent States has
further complicated the question of Japanese return of northern territories to
Japan and thus improve mutual relations.
The present relations between China and Japan are sustained not so much because
of its profitability but by Japanese government's long-term geopolitical
considerations. Japan's political relations with China have not changed much.
Japan remains cautious about military cooperation with China. Japan does not
1 want the US to help China develop an effective navy that could eventually
threaten Japan. China has also expressed concerns about Japan increasing its.
' ,
1 military strength.

The basic Japanese stance towards China is to support and reap the benefits of its
economic modernization. Though Japan favours a developing China, ~t still fears
a developed China.

10.5.5 Japan and Developing countries

Japan is troubled by the incoherence of ASEAN (Association of South East Asian
Nations) as a regional organization and its pressure for greater Japanese aid and
preferential treatment of manufactured imports from the region. ASEAN couritries
are anxious about domination of their national economies by Japanese economic
power, Japanese resource procurement from the region, and direct investment by
Japanese firms. Recent complaints from ASEAN relate to Japan exporting pollution
breeding industries to ASEAN region as a result of structural transformation of
Japanese economy.

/ Japan critically depends on oil from the Gulf. Japan adopted a pro-Arab policy
after the first oil crisis for securing vital oil supply. As the only maior country
j maintaining friendly relations with both Iran and Iraq, Japan is in a unique position
to help resolve Iran-Iraq problems. Japan imports two-thirds of its oil from the
t Middle East through Persian Gulf Ports:
I
I
For this purpose, Japan preferentially allocated its economic and techn~cala d In
favour of those countries in Africa. which posses exportable re\ource\ H o u c ~ c r .
t
I
Japan remained silenttindifferent to the question of raclsm In resource-r~chSouth
Africa.

j Inspite of instability of Latin American politic\. Jirpan's ccono~iiicrelations with

j ' the region have expanded.
b

1
C
Check \'our Progress 4

1 Note: i ) Use the space below tor your an\wcr.

1 l i ) Check your answer with the an\wer glbcn at the end ot the unlt

I 1 ) Name the recent major problem in Japan-US relation\.

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 2) What are Japan's interest in China'!

................................................................................
3) What is at stake for Japan in the Middle East'!

10.6 JAPAN AND THE UNITED NATIONS

Japan was admitted to the United Nationa in IYih. Sincc [hen Japan i\ ;~cti\cl!
participating in almost every area of UN activities. As the role ant1 scope of
these activities increased gradually and reflected in specialised bodies. so also the
Japanese contributiork grew.
Japan's contributions particularly increased in such fields o f UN activities like:
(1) The regular budget, (2) The iosts of peace-keeping operations.

Japan is also participating and stepping up its contributions to such bod~eslike:

UNCTAD : United Nations Conference on Trade and Development
UNDP : United Nations Development Program
UNIDO : United Nations Industrial Dekelopment Organization
UNESCO : United Nations Educational, Scientific and Cultural Organization
UNHCR : United Nations High Commissioner for Refugees
WHO : World Health Organization
FA0 : Food and Agriculture Organization
IMF ' : International Monetary Fund
It is expected that in the near future Japan may be given a permanent membership
in the UN Security Council on the basis of its economic strength.

- - - -

i0.7 INTERNATIONAL EXCHANGE AND

COOPERATION
Japan has gradually stepped up its external contribution as its economic strength
has developed. The volume of its Official Development Assistance (ODA) has
been rapidly increasing. Japan accounts for more than 10% of the GNP of the
entire world and this has made Japan a major presence on the global scene.
Relative decline of America's economic strength, low defense budget relative to
Japan's GNP, rapid climb of Yen since 1985, have together led many developing
countries to look for Japanese assistance in providing capital, technology and
' foreign aid. The reach of Japanese diplomatic acti;ity is today growing ever
broader and deeper. Three important areas in which Japan makes its international
contributions are: Content Digitized by eGyanKosh, IGNOU
a) cooperation for peace
 expansion of official development assistance, and Foreign Policy
b)
c) promotion of cultural exchange.
soiving the debt problem is a major task facing the global economy. To this and
Japan needs to make great efforts in coordinating with other major aid giving
countries.
The concept of cooperation for peace emphasises a role for Japan in the settlement
of international disputes instead of simply leaving the job up to others. It entails
(a) engaging in diplomatic dialogues with those countries that are involved in
disputes as well as others who could be influential in settling them, (b) cooperation
through participation in international conferences, (c) dispatching personnel to
take part in international peace keeping activities, (d) aiding refugees and
(e) assisting reconstruction.
The principal objectives of Japan's cooperation include (a) helping to raise the
standard of living of the recipient nations by supporting self-help efforts for
economic and social development, (b) improving fiiendly relations with the recipient
countries, (c) contributing to the development of the world economy as a whole
through cooperation in the economic advancement of developing countries, and
(d) contributing to the peace and stability of the international community.
The goal is to provide $ 5 0 billion in aid during the five year period through 1992.
In 1987 Japan provided $7.5 billion worth foreign aid. In 1988 it was $9.13 billion
and in 1989 $8.9 billion. Still there is need to raise the quality of Japan's assistance.
Because from recipients viewpoint, grants are preferable to loans. The share of
grants in Japan's ODA is comparatively very low. Apd though Japan is one of
biggest donor countries in the world, yet its systems for implementation lag far
behind those of western nations.
Thus efforts at confict mediation marks a significant departure from the post-war
Japanese pattern of diplomatic passivity. But still the Japanese foreign policy is
relatively passive and reactive.
People in other countries do not understand Japan well enough. The speed of
Japan's economic growth in the last few decades has been difficult for foreigners
to keep pace with. Though Japan is promoting cultural exchange, nevertheless
the need for Japan to spread qualitative knowledge globally about itself is great.
Japan also must be open to intellectual stimulation fiom a variety of other cultures.
Check Your Progress 5
Note: i) Use the space below for your answer.
ii) Check your answer with the answer given at the end of the unit.
1) [n which year was Japan admitted to the United Nations?

2) What is ODA?

Content Digitized by eGyanKosh, IGNOU

3) What are the forms of Japan's international contribution?
Japan

4) How much foreign aid Japan intends to provide from 1992 to 1996?

10.8 LET US SUMUP

It is difficult for a beleaguered cwntry to frame foreign policy. Japan had been
a beseiged country. Its foreign policy has marked US influence. Despite these
limitations Japan has chalked out a foreign policy to secure an honourable place
in the world divided into two blocs-haves and have nots-the rich North and
the poor South. Japan has added new content in the arena of foreign policy
making. Foreign policy generally deals with security problems and political projection
of the country concerned. Japan has emphasized on the geoeconomic factors in
making and implementing foreign policy of the country. In these efforts Japan
has achieved great success. It is now a world economic power. Japan has not
only diversified its foreign sources of markets but also has made them dependent
upon Japanese goods, services, technology and capital.
Indo-Japanese relations are historical. Indian culture, civilization have left marked
influence upon Japan like other east and south-east Asian countries. In the modem
period Japan's rise as a modem state in Asia and its victory in Russo-Japanese
war of 1904-05 served as sources' of inspirations for Indian nationalists. Indian
revolutionaries were provided with asylum, enocouragement and material aid in
their struggle against British imperial ism. Japanese Emperor conferred on Indian
Poet Rabindranath Tagme the title of "Post laureate ofAsia". Japanese goods
were perferred in Indian markets. In recent years Japan has again caught the
imagination of Indians. In the post-Cold War period Japan has come forward
with huge aid and grant for economic development of India.
In the preceding pages all these have been elaborately and analytically recounted.

10.9 KEY WORDS

Geoeconomics - Country's economy as determined by its geographical
and political position in the world.
MITI - Ministry of International Trade and Industry.
SDF - Self-defence Force.

10.10 SOME USEFUL BOOKS

Drifte, Reinhard, 1990, Japan's Foreign Policy, 1990, Royal Institute of
International Affairs, London.
Nester, William R., 1992, Japan and the Third world, Nester Macmillan,
London.

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 - Foreign Policy
1 0 1 ANSWERS TO CHECK YOUR PROGRESS
EXERCISES
Check Your Progress 1
1) a) Geopolitics
b) National Security
C) Resource Endowment and Vulnerability
2) a) Japan challenged the Western technological superiority successfully
b) By becoming world's No. 1 creditor country Japan put an end to
Western/ American financial hegemony.
3) To contribute to world peace and stability and to a harmonious progress of
the entire international community. For this, Japan follows close and abiding
relationship with the United States.
4) a) economic and commercial
b) obtaining access to supply of raw material
c) removing obstacles in the way of profitabile trade
d) defend Japan against external attack
e) remain in good terms with other countries
f) join international bodies to enhance Japan%prestige.
Check Your Progress 2
1) a) Parliament
b) Ministry of Foreign Affairs
c) Ministry of International Trade and Industry
d) Big business
e) Public opinion
2) Ministry of International trade and Industry. Its authority is exercised indirectly.
Its power rests on Diet-enacted Statutory authority.
3) Because of his Constitutional position as the chief executive of the government
and President of the ruling party.

Check Your Progress 3

1) a) The Basic policies for National Defense of 1957
b) The National Defense program outline of 1976
2) To prevent direct or indirect attack, if invaded, to repel such aggression.
3) On the basis of Japan-US Mutual Security Treatg.
f
4) a) Ground Self-Defense Forces
b) Maritime Self-Defense Forces, and
c) Air Self-Defense Forces.

Check Your Progress 4

1) The problem relates to a large bilateral trade surplus in favour of Japan.
p
4 2) Japan wants to support and reap benefits from China's economic modernization
b
G
program.
B
3) Japan imports two-thirds of its oil from the Middie East. Safe oil supply is
--.
very vital for Japan's economy.
Z
Check Your Progress 5
1 1) In1956
- 2) Overseas Development Assistance

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Japan 3) a) Cooperation for peace
b) Expansion of ODA
c) Promotion of Cultural exchange.
4) $ 5 0 billion.

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