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Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

U.S. told Japan what to do with Japan Post privatization

Japan has repeatedly consulted with the United States to draw a blueprint for postal privatization.

At the July 25 House of Councilors Special Committee on Postal Privatization meeting, Japanese Communist Party Daimon Mikishi exhibited a report of the Office of the U.S. Trade Representative (USTR) showing that the blueprint has been changed as required by the United States.

In the USTR report published in March, the U.S. government expressed concern about "imbalanced competitive conditions" between Japan Post's life insurance (Kanpo) and private insurance companies, and demanded that Japan stop presenting new Kanpo products.

As a result, the Japanese government changed the blueprint of a bill on postal privatization in accordance with the U.S. requests, such as making Japan Post meet the same tax obligations as private companies and terminating government guarantees on Japan Post's insurance products.

Daimon criticized the government for faithfully submitting to the U.S. demands.

Takenaka Heizo, Minister of State for Privatization of the Postal Services, admitted that Japan has consulted with the U.S. government and representatives concerned 18 times since last April, including five times with the U.S. insurance industry, but denied taking into consideration the U.S. demands to draw up the bill. -- Akahata, July 26, 2005