Saizeriya said it signed derivatives deals with BNP Paribas Securities (Japan) Ltd. twice, in October 2007 and February 2008, to procure Australian dollars needed to import food from that country. Under the deals, Saizeriya is to receive 1 million Australian dollars every month, payments of which started in September.
If the yen weakens below the level set in the contract, Saizeriya is entitled to buy the Australian dollars at a discount. But should the yen appreciate beyond that threshold, the purchase price rises.
The publication of an essay denying Japanese aggression in the Pacific before and throughout the WW2 by Japan Air Self-Defense Force Chief of Staff Gen. Tamogami Toshio (pictured below) could have led to another major international diplomatic incident. This seems to have been curtailed by his immediate firing, and a reaffirmation of the Government of Japan’s official stance of acknowledging Japanese aggression.
Almost all of the news coverage I have seen reports simply on the contents of General Tamogami’s essay, the fact that it was a contest, his prompt dismissal, and some half-hearted complaints about the essay from overseas (clearly headed off by the rapidity of his firing), but aside from this article at Mainichi virtually nothing about the contest itself. My first reaction was to wonder what the background story here was.
Naturally I started poking about online. I’ll start with what the Mainichi story had to say about the contest:
Watanabe etc. on the selection committee
According to the APA Group web page, essays were solicited for the purpose of “steering Japan towards a correct understanding of history as an independent nation”, and a prize of ￥3 million (Note: around $30,000 USD) was awarded as the grand prize. The head of the selection committee was Sophia University Distinguished Professor Watanabe Shouichi, a conservative commentator. APA Group CEO, Motoya Toshio, writes essays on historical perceptions under the pen name Fuji Seiji (藤誠志).
Mr. Motoya does not simply write essays under this pen-name, but actually publishes them in the APA corporate newsletter, Apple Town (“Fresh Information For Your Best Life”). He has also published a number of books under his own name, which you can order through the APA website, most notable “Modern History The Media Doesn’t Report on: Postwar History is an Argument over Nuclear Weapons”, for which he has a promo page on the APA site. (There are also a couple of books written by his wife, Motoya Fumiko CEO of APA Hotels.) Incidentally, another of Mr. Motoya’s books, “Business is Romance”, appears on a “Japanese National Bibliography” page on the National Diet Library website.
As you can see from the above screen capture of the contest website, the essay contest actually appears to be a promotion for his book. In fact, the grand prize is self-aggrandizingly named the “Fuji Seiji Prize Award”, after Mr. Motoya’s pen name. Although APA Group is a publicly traded company and not a family business (I believe this is the case, but I am not 100% sure, so I would appreciate someone checking), CEO Motoya is not only using the corporate website and magazine to promote his right-wing political agenda, but may also very well be using corporate funds for the contest prize money. According to this blog post, the book is also being promoted and sold in APA hotels.
At or near the bottom of the sidebar present throughout the entire APA Group website (some pages have other links below), there is also a link to an external political organization run by Motoya, the “Kanazawa Friends of the Komatsu Military Base.” (小松基地金沢友の会) The purpose of the group, according to a statement from Motoya on the front page is “get the entire citizenry of Japan, in which there is yet a shallow understanding of the importance of national defense, to understand that a balance of power involving military deterrent leads to international peace,” and to “support the Komatsu Base, which covers the entire Sea of Japan region, which is close to such countries as Russia, China and North Korea.” Googling a few sample names from the members list produces what would be expected: old men from Ishikawa Prefecture involved mostly in business, and one LDP Diet member who had held a minor position in Koizumi’s cabinet.
The website is located on a domain which appears to be independent of APA Group, at jasdfmate.gr.jp (Japan Air Self Defense Force Mate at the Japanese secondary .gr domain for volunteer groups). They also appear to be hosted at different locations, as the traceroute path is significantly different. However, the WHOIS database indicates that the contact person for both websites is a Nishikawa Harumi (西川 治美), who according to the apa.co.jp WHOIS entry is an employee in the Business Section of APA Co.,LTD. and according to the jasdfmate.gr.jp WHOIS entry is a “Clerk” for “Air Self-Defense Force in Komatsu, Kanazawa Mate.” Ms. Nishikawa has been listed as the contact person for the sites since at least 2001.01.16 and 2000.03.21 respectively, when the contact information was last updated. The shallow attempt at separation of private form corporate breaks down, however, when the JASDFMate site lists the contact email address as office@apa.co.jp. You too can join the group, and go on their various activities-such as tours of the base-for a mere ￥10,000.
“Modern History The Media Doesn’t Report on” was published on April 18 of this year, and a combination publishing celebration party and birthday party was held in early June, which is commemorated at this page on the APA site. This page contains some videos which were screened at the party, the third of which finishes off with a list of the party’s sponsors. The list is long, but contains quite a few names of note. Some of the ones that jumped out at me were (in order of appearance):
Asao Keiichiro (DPJ Shadow Defense Minister)
Abe Shinzo (former LDP PM)
Ikeguchi Ekan (Shingon-shu leader)
Koh Se-kai (Former Taiwan representative to Japan, Taiwan independence activist)
Ko Bunyu (Japan-resident Taiwanese independence activist and writer, darling of Japan’s far right)
Dewi Sukarno (Japan-born former wife of Indonesian dictator Sukarno)
Tamogami Toshio (just-fired JASDF chief)
Hatoyama Kunio (LDP politician, currently Minister of Internal Affairs and Communications)
Bobby Valentine (Former MLB baseball player and manager, current manager of Japan’s Chiba Lotte Marines baseball team)
Jose de Venecia, Jr. (Speaker of the House of the Philippines)
Mori Yoshirou (Former LDP PM)
Watanabe Shouichi (Sophia U. Distinguished Professor of English and right-wing commentator, and head of the essay committee)
According to this Sankei article on the party, over 1500 guests were in attendance, of which several dozen were thanked by name in the video.
In this photo of the party (again, from the APA page) you can see General Tamogami was not merely a guest at the event, but actually addressing the crowd. This was just under a month after the contest had been announced, on May 10. According to the above-linked Sankei article, Tamogami jokingly referred to himself as a “controversial figure” and said that:
After the war, speech arguing to defend our country was suppressed, but speech that was anti-Japan or badmouthing Japan was free. As long as the fundamental problems of security are not dealt with, it is impossible to be ready to protect this country in the manner it deserves.
This is a reference to constitutional revision to eliminate or revise Article 9-Japan’s famous pacifism clause. Essentially, the grand prize winner of an “essay contest” was a speaker at an event which was both the launch party for the book the essay contest was promoting, as well as the birthday of the author, expressing essentially the same opinion later given in that essay.
Tamogami and Motoya actually had a political association dating back some time, at least to a “Wine no Kai” (Wine Party for Discussing Japan)documented in Motoya / APA’s own magazine. (Click here for PDF of the article, originally copied from the APA web site.) In this photograph you can see Tamogami , Motoya, Hatoyama Yukio (one of the leading hawks in Japan’s opposition Democratic Party, which differs little from the permanent ruling LDP on substantial matters, his family name ironically means “Dove Mountain”) and his wife, as well as Sankei Journalist Oshima Shinzo.
Wine no Kai 2004
I am actually slightly unclear whether the article text is a summary of the discussions had at the party or simply yet another of Motoya’s essays, but it is probable that the participants at least agreed with the ghist of it. The article concludes by stating that “the statement that ‘Japan must absolutely not equip itself with nuclear weapons’ is absurd.” Japanese nuclear armament seems to be one of Motoya’s main issues.
Motoya has apparently hosted a number of annual sessions of the “Wine no Kai,” including a session the following year attended by not-yet Prime Minister Abe Shinzo.
Wine no Kai 2005
That’s Abe sitting there in the middle, flanked by Motoya Toshio, with the horrific grimace and weirdly out of place striped shirt, and Mrs. Motoya Fumiko, wearing one of the silly hats she is famous for. PDF of the entire article is here.The article contains nothing nearly as inflammatory as the previous year’s call for nuclear weapons, but I would like to share this brief and bewildering excerpt.
A certain Japan-born Korean said that “The Japanese value respect. Japanese culture is excellent on the inside. But I shed tears when looking at today’s Japan.” The lazy attitude of young people is particularly offensive. Korea still has a military draft system, and although I am not saying that Japan should revive militarism, I will say that the draft system should be introduced. They would not need to serve for two years, but let them live for a year in a group to teach them rules and endurance. If you invite a young person today to say “let’s go drinking” they refuse saying, “that’s OK.” In the old days, they were happy to get an invitation from an elder.
Abe and Motoya are reputed to have far stronger links. Although it seems to have been rarely discussed in the mainstream media (keep in mind that Japanese newspapers keep articles online for a very short time and I am not actually going so far as to check archives), it has been repeatedly claimed on blogs (most notably Kikko’s Diary, but also many smaller ones) that Motoya was vice-chair of Abe’s political support committee known as the Anshinkai, (安晋会, J-Wikipedia article). The name “Anshin” is a pun derived from part of Abe Shinzo’s name, which also sounds like the Japanese word for “safety.” neither the existence of Anshinkai nor Motoya’s membership in it has ever been publically acknowledged, but the above photograph of the “Wine no Kai” is often cited as evidence of both.
One blog wrote in February 2, 2007, that “mentions of Anshinkai have finally started appearing off-line as well,” indicating that this story actually began in the blogs before being taken up by the offline media, in a pattern considered to be generally un-Japanese. Another blog, on the same day, has a roundup of weekly news magazines (traditionally these magazines and not daily papers is the place for news that is more based on investigation or rumor) which had recently mentioned the Anshinkai, including Shukan Post, Shukan Bunshun and Shukan Asahi. The blog says that Shukan Post had been the first to report on Anshinkai, in February 10, 2006, alleging a connection with the Livedoor scandal.
Another blog, from January 31, 2006, has some more information on the Livedoor connection, notably that HS Securities VP Noguchi Hideaki, who committed suicide after falling under suspicion, was director of Anshinkai. The same article contains a dizzying chart of connections between various persons, groups and companies, which does not include Motoya/APA but does include another interesting name – HUSER (Human User Company). Huser had been involved in a construction inspection scandal, seriously enough so that President Ojima Susumu was actually called to testify before the Diet, where he admitted to meeting with Abe Policy Secretary, Iizuka Hiroshi.
As I mentioned at the beginning of this increasingly long post, APA Group is now infamous for their involvement with a similar scandal. I don’t want to spend more time on this, so I recommend you read the good English coverage of at Shin Fukushige’s blog (note that Adam commented on this post.) The CEOs of both Huser and APA are allegedly members of Anshinkai, and there has much much suspicion that Abe and his people deflected as much heat as he could. The connections between Motoya and Abe are strong enough that Kikko titled one January 2007 post “APA Group is Abe Group.”
As I write this, the US 2008 election results are coming in and I want to wrap this up so I can concentrate on that, so let me summarize briefly.
Motoya Toshio is a very successful construction and real estate entrepeneur, with extreme right wing views, an obsession with political leaders and celebrities (he brags about having met a wide variety of famous people, starting oddly with Castro), and an otaku-esque fascination with military things (he also brags about having taken a test flight on a fighter plane). Having built his company into the massive APA Group, he used his company’s publicity apparatus to promote his political ideas, and his significant financial leverage to support Japanese politicians supportive of his militaristic agenda. He appears to have also used those political connections to promote large business projects, and when his company became embroiled in a serious construction inspection scandal, he also turned to his political allies for help.
Combining his attraction to both power and military, he invited ASDF General Tamogami Toshio into his circle, bringing him to the Wine no Kai and to address the launch party for his latest right-wing tract. Motoya then had APA sponsor an essay contest promoting his book-possibly an illicit use of corporate funds-with the grand prize awarded to Tamogami , in a decision I suspect was actually arranged by Motoya personally, with the “selection committee” only choosing the lesser prizes. Motoya was probably hoping that Tamogami , who had a history of making controversial public statements and escaping serious censure, would be able to step up and continue the main-streaming of right-wing militaristic views, but his gamble failed. His friend Abe Shinzo was no longer Prime Minister, having perhaps spent too much of his political capital defending Motoya’s APA Group and Huser during the earthquake proofing inspection scandals, and Aso’s government was just not interested in risking blow-back by defending a general who had so egregiously violated the rules on political speech by uniformed officers and the supremacy of civilian leadership. Fukuda Yasuo had worked to improve relations with China and other neighbors following the Abe administration, and perhaps newly appointed Prime Minster Aso Taro, despite his right-wing views and his own well-earned reputation for making gaffes decided to take the pragmatic route and declined to protect Tamogami .
Apparently the Halloween party train on the Yamanote Line went off without a hitch:
This year’s story is rather interesting because of the crazy 2channeler element — check out the organizers’ assertion that the police showed up to protect the drunk foreigners from crazy organized otaku. Guess the latter get more scrutiny than the former these days.
All Nippon Airways Co. and United Parcel Service Inc. agreed to handle each other’s international shipments to help better position each company economically, Nikkei English News reported, without citing anyone.
— BOJ May Have to Cut Rate as Investors See `Done Deal’ (Update1)
Oct. 30 (Bloomberg) — The Bank of Japan may have little choice but to cut interest rates tomorrow after a newspaper report raised investors’ expectations that it would.
Bloomberg, you’re not supposed to sound so obviously disgusted with another news outlet!
Sure, Bloomberg also runs stories sourced anonymously when the information is good. But the Nikkei’s case is extreme. This is just a guess, but the Nikkei’s pages often seem to contain more anonymous quotes than attributed ones.
Catching wind of a new business tie-up might be fair game, but considering the huge significance of monetary policy, and the potential for dirty tricks, there really is no business giving political insiders anonymity for the sake of a scoop, no matter who the source is. And who might that source be?
“The government is the one who wants the Bank of Japan to cut rates this week to show Japan is coordinating with other nations to ease turmoil in markets,” Mari Iwashita, chief market economist at Daiwa Securities SMBC Co. in Tokyo. Still, “the economy and markets could worsen further even after they reduce interest rates and that’s what the central bank has to think about at the meeting this week.”
Considering the Aso government’s lack of respect for the improvements in Japan’s economic bureaucracy over the past decade, it isn’t surprising that they show no hesitation to interfere with monetary policymaking.
To be sure, Aso has generally been cooperative in taking steps to deal with the crisis, but that’s because he is listening to the FSA, perhaps the authority on managing financial crises, and anyone could be doing that. And the effects of a potential rate cut are reported to be mostly psychological and would not take much from the BOJ’s already limited wiggle room on the policy rate.
But there is a risk that Aso’s bloviating and posturing for political gain could take a dangerous turn, such using recapitalization money to force banks to lend to insolvent small businesses or pushing for even easier money to help his election prospects. That’s what makes it so disappointing that the Nikkei, far from playing the role of watchdog, is actively enabling Aso’s backroom maneuvering.
It’s enough to make you sympathize with Koizumi-era economics brain Heizo Takenaka, who has argued for years that Japanese democracy just doesn’t work. He thinks tough decisions should be left to a single strong leader, with the Diet and bureaucrats relegated to supporting roles.
In the new stimulus package, the government will provide a total of 2 trillion yen in fixed-sum benefits to all households, instead of introducing a fixed-sum tax cut, which had been considered key to the package. Based on the total number of households as of the end of March 2008, each household would receive about 38,000 yen.
For the housing loan tax cuts, the government is expected to reduce income and resident taxes by as much as a total of 6 million yen per person, a record high, for people who have housing loans of 50 million yen or less. About 500 billion yen to 600 billion yen is expected to be necessary for this measure.
The government will introduce a fixed-amount expressway toll system, in which expressway users are charged 1,000 yen on Saturday, Sundays and national holidays, regardless of the distance the driver travels on the expressway. Tolls for all kinds of vehicles, including trucks, will be reduced by 30 percent on weekdays. The Shuto Expressway and the Hanshin Expressway will be excluded from rate reductions. About 500 billion yen will be needed to cover the cost, with the measure expected to take effect within this year and continue through the end of 2010.
Considering that Japan is generally considered to be heading into an unavoidable but relatively mild recession, and the package is in fact relatively small and focused on populist handouts, has led people to dismiss this as a political ploy. But if it’s not doing any harm, maybe in this case we can let the baby have his bottle?
This passage illustrates part of the reason why banks bought so many crappy mortgages:
In one email, an S&P analytical staffer emailed another that a mortgage or structured-finance deal was “ridiculous” and that “we should not be rating it.” The other S&P staffer replied that “we rate every deal,” adding that “it could be structured by cows and we would rate it.”
Congratulations! His blog has been absolutely indispensible reading as I try and get my head around the economic crisis. He didn’t win the prize for blogging but I have the suspicion the prize was intended by the Swedish central bank as an endorsement of his views on the crisis.
Now I feel the need to play catch-up to understand the work (PDF) that actually earned him the prize!
Right now I am translating an agreement relating to a fairly expensive sounding construction project somewhere in Japan, which contained the following rather interesting clause.
As the official language of the construction project shall be Japanese, competent interpreters and personnel will be assigned as needed to the worksite and offices, so as to avoid obstacles to ordinary communication or directives.
Compared to a few years ago, the Internet in Japan has evolved substantially. While anonymous message boards like 2-channel (and anonymity in general) remain the public face of the Japanese Internet, the dominance of 2-channel itself has long since faded in the wake of the rise of rival message boards, blogs and social networking sites like Mixi. Sites like Yahoo are far easier to use than in the past, shopping on Rakuten and Amazon is very common, and more generally the Internet is now an everyday fact of life for a very large percentage of Japanese people, to the extent that as early as 2006, 20% of people surveyed claimed they use the Internet at work for personal reasons almost every day.
The mainstream media, in particular the national newspapers, have been somewhat slow to adapt to the changing times. For years after launching their websites, most did not offer full-text articles or much else in the way of content. But as Internet ad revenue surges at the expense of newspaper ads, weaker players such as Sankei have led the way, making incremental steps to provide fuller content and better user interactivity. Sankei’s IZA!, launched in 2005, is an ambitious effort linking news content, reporter blogs, and user-generated blog posts under one site.
More recently (last year and this year), just about all the national newspapers have revamped their web offerings in step with changes to their print editions. The dead-tree newspapers seem to have undergone two major changes to accommodate their base of older readers: (1) larger fonts; and (2) more background pieces.
Their websites, meanwhile, have focused on user-friendliness, locking content behind free or fee-based user registration, more interactivity, and richer online-only content. Most if not all are stopping short of the New York Times’ practice of posting all content online. Here are two of my current favorites:
Despite its baffling name, “Allatanys,” a multi-company effort that allows users to compare national daily newspapers Asahi, Nikkei, and Yomiuri all in one site, has proven very useful. Sure, I could “compare” them myself if only the sites would offer categorized RSS feeds (Asahi does, the others appear not to). But absent that, this is an easy alternative. It is especially useful to take a look at the editorials.
Nikkei offers a revamped “NetPlus,” a platform for what they call Net-synchronized features. Among other things, the site creates a space for both experts (like the omnipresent Heizo Takenaka) and registered users to comment on some of the Nikkei’s long-form analysis pieces and op-eds. Strangely, they decline to post any text from the original articles, so you are expected to go out and buy the actual newspaper before logging on to post your thoughts.
BTW, for English-language bloggers who are interested in the Japanese web, I recommend the “Asiajin” blog. I have been following their RSS feed for a few weeks now. The site offers an informed look at developments in Japanese web as they happen. Their recent review of the top-used Japanese web services was particularly helpful (I hadn’t really heard of some of them myself).
The Aso government has indicated plans to use the upcoming emergency G7 finance ministers summit to urge the US to adopt a Japan-style capital injection of troubled banks. The Nikkei backs up this position in an editorial: “The US and Europe must press the need for an injection of capital [into failing financial institutions] to assuage financial uncertainty.”
Of course, the US will probably have little choice but to inject capital anyway (the UK is already doing something similar), so Aso’s advice might simply be a ploy to try and take credit for something he had nothing to do with.
