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⁴ In 1986, Japan's population was an estimated 121.5 million, compared with 61.1 million for West Germany, 57.2 million for Italy, 56.6 million for the United Kingdom, and 55.4 million for France. See Keizai Koho Center, Japan 1988: An International Comparison (Tokyo: Keizai Koho Center, 1987), 6.Google Scholar

⁵ Japanese long-term capital outflows in 1986 totaled $132 billion; OPEC annual capital outflows in the mid-1970s averaged under $65 billion. See Nomura Investment Review, July 1987, p. 11; New York Times, August 31, 1986.

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¹¹ The Fiscal Investment and Loans Program, for example, expanded by 6.2% in 1986, and by 22.2% in 1987. See Yonezawa, JunichiNoguchi, Takuo, and Kubota, Katsuhiro, Zusetsu: Zaisei Tōyūshi [The fiscal investment and loans program: A graphic description], 1987 ed. (Tokyo: Tōyō Keizai Shinpōsha, 1987), 254–55.Google Scholar

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¹⁴ Calder (fn. 12).

¹⁵ The report was informally named after the former governor of the Bank of Japan, Haruo Maekawa, the chairman of the advisory group. The formal name is Advisory Group on Economic Structural Adjustment for International Harmony; the committee was charged with recommending ways of “more fully internationalizing the Japanese economy.”

¹⁶ Japan Times, April 8, 1986.

¹⁷ See Keohane, Robert O., “The Big Influence of Small Allies,” Foreign Policy No. 2 (Spring 1971), 161–82CrossRefGoogle Scholar, on the methods smaller states use to influence the foreign policies of larger powers upon whom they are dependent.

¹⁸ In fiscal 1986, for example, Japan's 24 insurance companies incurred a ¥ 2.2 trillion (over $15 billion) foreign exchange loss on their ¥ 10 trillion in foreign securities holdings, 50% of which were in U.S. Treasury offerings. Results for 1987 were reportedly comparable. See Japan Times, January 5, 1988.

¹⁹ By 1988, Japan had, at prevailing exchange rates, by various definitions either the thirdlargest or the seventh-largest defense budget in the world, with rising defense technology capabilities and a central role in funding both U.S. defense budgets and economic assistance programs supportive of U.S. basing rights in states such as the Philippines. The Japanese defense budget for fiscal 1988 by Japanese definition was ¥ 3.67 trillion (around $30.4 billion at December 1987 exchange rates). By the NATO definition, including military pensions that Japan treats as welfare spending, Japan's defense budget was around $45 billion—significantly larger than the 1987 totals for France ($34.5 billion), West Germany ($34.2 billion), and Britain ($31.8 billion). See The Economist, January 23, 1988, pp. 27–28.

²⁰ Wolferen, Van, “The Japan Problem,” Foreign Affairs 65 (Winter 1986–87), 289.CrossRefGoogle Scholar

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²² See the studies by Sadao Asada of the 1922 Washington and the 1930 London Naval Conferences, in Hosoya, Chihiro and Watanuki, Jōji, eds., Taigai Seisaku Kettei no Nichibei Hilkaku [A comparison of U.S. and Japanese foreign policy processes] (Tokyo: University of Tokyo Press, 1977)Google Scholar; and Hosoya, Chihiro and Saitō, Makoto, eds., Washington Taisei to Nichibei Kankei [The Washington system and U.S.-Japan relations] (Tokyo: University of Tokyo Press, 1978).Google Scholar

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²⁵ See, for example, Satō, Seizaburō and Matsuzaki, Tetsuhisa, Jimintō Seiken [The LDP administration] (Tokyo: Kōdansha, 1986)Google Scholar, and Bu, Nihon Keizai Shimbun Seiji, ed., Jimintō Sekhō Kai [The LDP policy affairs research council] (Tokyo: Nihon Keizai Shimbun Sha, 1983).Google Scholar

²⁶ Some see the LDP's mediation of the import liberalization controversy of metal baseball bats in the early 1980s as one such case. See ibid., 40–43.

²⁷ In 1986, 77.7% of global U.S. beef and veal exports went to Japan. So did 86.5%, 73.2%, .55.2%, and 29.2% of U.S. lemon/lime, pork, grapefruit, and orange/tangerine exports, respectively. See Keizai Kōhō Center (fn. 4), 18.

²⁸ On the influence of the Japanese mass media since the late 1950s, see, for example, Kido, Mataichi, ed., Gendai Jyanarisumu: Shimbun [Modern journalism: Newspapers] (Tokyo: Jiji Tsushin Sha, 1973)Google Scholar; Kido, Mataichi, ed., Gendai Jyanarisumu: Hōsō [Modern journalism: Broadcasting] (Tokyo: Jiji Tsushin Sha, 1973)Google Scholar; Miyake, IchirōWatanuki, Jōji, and Kabashima, Ikuo, Byōdō o meguru Elito to Taikō Elito [Elites and counter-elites who bring about equality] (Tokyo: Sōbun Sha, 1985)Google Scholar; and Kabashima, Ikuo and Broadbent, Jeffrey, “Referent Pluralism: Mass Media and Politics in Japan,” Journal of Japanese Studies 12 (Summer 1986), 329–61.Google Scholar

²⁹ Johnson, Chalmers, MITI and the Japanese Miracle (Stanford, CA: Stanford University Press, 1982)Google Scholar; also see McCraw, ed., America versus Japan, esp. p. 37.

³⁰ According to Ministry of Finance statistics, Japan's 1986 trade surplus was $92.8 billion. See Nomura Investment Review, January 1988, p. 10.

³¹ Feldstein, Martin, “Correcting the Trade Deficit,” Foreign Affairs (Spring 1987), 795–96.Google Scholar

³² Bergsten, C. Fred, “Economic Imbalances and World Politics,” Foreign Affairs 65 (Spring 1987), 770–71.CrossRefGoogle Scholar

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³⁴ Ibid., 799–800.

³⁵ See Gilpin, Robert, The Political Economy of International Relations (Princeton: Princeton University Press, 1987), 328–36.CrossRefGoogle Scholar

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³⁷ Among the growing literature combatively justifying Japanese economic management and blaming others for global imbalances, see Shimomura, Osamu, “Ijōna Amerika Keizai, Rifujin na Amerika” [A distorted American economy, and an unfair America], Next (July 1985), 90–95Google Scholar; Ohmae, Kenichi, “Nichibei ni ‘Fukinkō’ wa nai” [Between Japan and the U.S. there is no imbalance], Bungei Shunjū (April 1986), 94–109Google Scholar; and Shimomura, Osamu, “Nihon Mondai kara ‘Amerikan Puroburemu’ e” [From the Japan problem to the American problem] Seiron (July 1987), 40–49.Google Scholar

³⁸ In 1985 the metal fabrication industry employed 1,278,000 workers, compared to 427,000 for the steel industry, and 202,000 for the nonferrous metals production sector. See Management and Coordination Agency Statistics Bureau, Japan Statistical Yearbook, 1987 ed. (Tokyo: Management and Coordination Agency Statistics Bureau, 1987), 74.Google Scholar

³⁹ Keizai Kōhō Center (fn. 4), 56.

⁴⁰ Nomura Investment Review, April 1987, p. 11.

⁴¹ After the sweeping reforms of the foreign exchange law in 1980, operating profits of the top four securities houses rose between 29% and 51% in one year. By the end of 1985, they stood at roughly triple the levels of 1979–1980, while those of the major banks quadrupled during the same period. By 1986, all four of the largest banks in the world, and six of the ten largest, were Japanese. See The Oriental Economist, Japan Company Handbook, First Half 1986 (Tokyo: Tōyō Keizai Shinpō Sha, 1986), 1010–1113Google Scholar; and Shimbun, Nihon Sha, ed., Nikkei Sōgō Charts [Nikkei composite charts] (Tokyo: Nihon Keizai Shimbun Sha, 1985), 425–30.Google Scholar

⁴² See, for example, Ishiyama, Yoshihide, “Utage no ato no Kokusai Tsuka Kaikaku” [International currency reform after the banquet], Chūō Kōron, April 1986, pp. 176–87.Google Scholar

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⁴⁴ On the G-2 concept, see Funabashi, 194–230 and Bergsten (fn. 32), 789–93.