The U.S. and Japan: Myths, Threats, and Opportunities

THE U.S. AND JAPAN: MYTHS,___ THREATS, AND OPPORTUNITIES Desaix Anderson T,he close, even intimate, relationship between such culturally, historically , and geographically distant societies as Japan and the United States is unprecedented. With the end of the Cold War, the United States-Japan relationshiphasbecome the mostimportanttothe futurepeace andprosperity ofthe world. The relationship is also the most plagued with misunderstanding and myth. A few simple statistics make a compelling case for U.S.-Japan partnership .The United States and Japan are the two largest economies in the world, together accounting for about one-third of the world's economic activity. Japan and the United States are the principal sources ofdevelopmental assistance for the developing world, providing annually roughly twenty billion dollars of economic assistance to the rest of the world, 35 percent ofthe Development Assistance Committee (DAC) total. Moreover, Tokyo announced recently that its overseas development assistance would increase by nearly fifty percent over the next five years to total $75 billion, making Japan by far the largest donor. Characterized by common purpose, Tokyo-Washington consultations cover every significant international issue. Japan readilyjoins forces with Desaix Anderson is a U.S. Foreign Service Officer who has served for more than thirtyyearsinAsia, includingDeputyChiefofMissioninTokyo. Hewas assignedas Diplomat-in-Residence at Princeton and Rutgers universities for the past academic year. The views expressed are his, and do not necessarily reflect those ofthe State Department. 95 96 SAIS REVIEW the United States, bringing its huge financial resources and growing political influence to bear to provide economic assistance, revamp international institutions, apply political pressure, or work together for almost any constructive purpose anywhere around the globe. The United States' security alliance withJapan is the core ofAmerica's strategic position in Asia andthe Pacific. The bilateral HostNationSupport agreement provides for Tokyo to assume by 1996 73 percent of all costs, excluding American salaries, ofU.S. armed forces stationed in Japan. This support, by far the most generous support of any ally and is a model for allied burden-sharing, plays a pivotal role in maintaining the U.S. forward deployed presence in Asia. Conversely, should our security relationship with Japan suffer, American military flexibility and political influence throughout Asia would deteriorate rapidly. The shock waves would bring instability throughout the vast region and reorder the Asian strategic universe. The governments have demonstrated growing maturity in their ability to address bilateral trade and other economic frictions. From textiles to televisions, to steel, semiconductors, and satellites, our negotiators have managed to resolve economic frictions ofincreasing sophistication and complexity . The Structural Impediments Initiative (SH), begun in July 1989, marked an unprecedented joint examination of the internal structures of the United States and Japanese economies. Through this process, Tokyo and Washington devised solutions to issues which earlier would have been regarded as sacrosanct sovereign matters. The Framework Agreement, announced by President Clinton and Prime Minister Miyazawa during the Tokyo Summit, goes beyond SH in envisioning a new, comprehensive approach which will address the basis of macroeconomic, structural, and sectoral issues. Scientific and technological cooperationbetween the public and private sectors ofJapan and the United States is one ofthe most promising fields for major breakthroughs that will benefit producers and consumers. While for much ofthe time after World War ? technology transfers went largely to Japan, the Science and Technology Agreement, concluded in 1989, provides the basis for a more balanced technological relationship. Both the Science and Technology Agreement and its counterpart concerning defense technology, concluded during President Reagan's visit to Tokyo in 1983, provide the opportunity for greatly expanding the transfer of Japanese technology to the United States. However, it is unclear if U.S. firms are prepared to make the commitment necessary to take advantage of the opportunities provided by these agreements. With So Much Right, What Is Wrong? Given the vital importance of the U.S.-Japanese relationship to one another and to the world, why are the ties under constant pressure and THE U.S. AND JAPAN: MYTHS, THREATS, AND OPPORTUNITIES 97 such aneasytargetforcriticson both sidesofthePacific?WhydoAmericans commonly believe that Japan's market is closed to foreign products? Why has it apparently escapedpublic attention thatJapanisour largestoverseas market; that we nearly doubled our exports to Japan between 1987...