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UCOM COMMENTS ON USTR REPORT

 UCOM COMMENTS ON USTR REPORT
 TOKYO, Aug. 5 /PRNewswire/ -- The Electronic Industries


Association of Japan issued the following:
 Regarding the announcement by the United States Trade Representative (USTR) concerning the interagency review of the Japan- U.S. Semiconductor Arrangement, Nobuo Kanoi, chairman of EIAJ's Users' Committee of Foreign Semiconductors (UCOM), expressed concern over USTR's conclusion that "efforts by the Japanese Government and Japanese industry have not, to date, resulted in sufficient progress." He went on to stress the fact that significant progress has been made in the past several years, and that progress will continue to be made in the future.
 "UCOM is confident that business opportunities between Japanese users and foreign suppliers are increasing," Kanoi noted. "The most important task lies in how effectively both users and suppliers utilize the opportunities before them."
 We are seeing serious efforts by the Japanese side in line with the Joint Statement Regarding Plans for Market Access Expansion announced by EIAJ and the U.S. Semiconductor Industry (SIA) at the June meeting in Tokyo. The "Inquiry List," submitted by the 10 largest Japanese user companies, is the central feature of the Emergency Measures stated in the EIAJ/SIA Joint Statement.
 The 10 user companies have approached their task in earnest and have given the highest priority to improving the market share of foreign semiconductors. All inquiry lists have been completed and will be used as reference materials by more than 440 foreign suppliers for the third and fourth quarters of 1992. The key will be how effectively suppliers use the lists.
 Kanoi commented: "More than 20 suppliers have already expressed their appreciation, verbally or in writing, for continued cooperation by the Japanese side. However, as noted by USTR, it is too early to assess the results of the emergency measures."
 While the Japanese side agrees that U.S. semiconductor suppliers are highly competitive in some areas, the U.S. industry is not competitive in all areas of the Japanese market. EIAJ/UCOM has, since the establishment of the Japan-U.S. Semiconductor Arrangement, continuously made a series of recommendations to U.S. suppliers on how to improve their competitiveness in these areas. Moreover, continuing efforts are being made toward design-ins of foreign semiconductors and the establishment of long-term relationships between foreign and Japanese firms. In light of the fact that both are long-term projects, however, it should be noted that immediate results are not possible.
 Kanoi stated: "UCOM will continue its positive efforts to improve access to the Japanese market for foreign semiconductors. However, to ensure mutual success in a healthier business environment, we would like to ask for further efforts by foreign suppliers. Only through mutual efforts by users and suppliers, including small and medium-sized suppliers, will we see effective improvement in market access."
 Until now, through various efforts, such as sponsoring exhibitions and seminars, and dispatching trade missions, Japanese users have worked to increase access opportunities for foreign semiconductor suppliers into the Japanese market. In addition, on June 1, 1992 UCOM established a liaison office in California to further enhance communication links between users and suppliers. Moreover, during the three days beginning July 15, 1992, representatives of over 400 suppliers from the United States, Europe and Japanese affiliates of foreign suppliers participated in what turned out to be more than 480 one-on-one meetings in Tokyo with Japanese users -- the largest number ever for meetings of this kind.
 Since the 1986 implementation of the First Japan-U.S. Semiconductor Arrangement, Japanese users and foreign suppliers have exchanged candid views and deepened mutual understanding of the specific areas into which each party must put effort. This has clearly been reflected in the joint statement announced at the EIAJ/SIA meeting in June.
 Notes:
 1. The following outlines the action plan agreed upon by EIAJ
 and SIA as a result of the June 4, 1992, meeting in Tokyo.
 I. Efforts by EIAJ
 To expand market access for foreign semiconductors, the
 chairman of UCOM will send a letter to all member companies
 seeking the issuance by each company's CEO and purchasing
 manager (or other top management person responsible for
 purchasing) of a complete statement on the company's policy.
 (nearly complete)
 II. Emergency Special Measures by 10 Largest Japanese User
 Companies -- Inquiry List
 The 10 largest Japanese user companies will present to
 foreign suppliers their inquiry lists, which will be used as
 sales opportunity information that may lead to possible
 business deals in the third and fourth quarters of 1992.
 (already presented)
 III. Efforts by SIA
 SIA will continue to encourage participation of small and
 medium-sized suppliers by establishing design centers in
 Japan, undertaking further distributor training, ensuring
 quick responses to quality-related problems and adapting
 products to match Japanese users' needs.
 IV. Shared Efforts by EIAJ and SIA
 (a) Supporting UCOM California office
 (b) Holding a trade mission in Tokyo in mid-July for
 one-on-one meetings between foreign suppliers and
 Japanese users. (completed)
 (c) Persuading their respective governments to be more active
 in stimulating economic recovery.
 (d) Presenting awards to outstanding supplier and user
 companies.
 V. EIAJ/SIA Joint Activities
 EIAJ and SIA have seven subcommittees currently operating.
 EIAJ/SIA Steering Committee members will review and
 prioritize the directions and activities of these
 subcommittees. (Steering Committee meeting currently being
 planned)
 VI. An Additional Action to be Taken by SIA
 SIA will survey its members to publish a "flash report" of
 monthly data on bookings from Japanese customers.
 2. 10 Largest Japanese User Companies (mentioned above)
 -- Old Electric Industry Co., Ltd. -- NEC Corp.
 -- Sanyo Electric Co., Ltd. -- Hitachi, Ltd.
 -- Sharp Corp. -- Fujitsu Limited
 -- Sony Corp. -- Matsushita Electric
 Industrial Co., Ltd.
 -- Toshiba Corp. -- Mitsubishi Electric Corp.
 -0- 8/5/92
 /CONTACT: Tamotsu Harada of the Electronic Industries Association of Japan, 03-3213-1071/ CO: Electronic Industries Association of Japan ST: IN: CPR SU:


MH -- DC014 -- 7114 08/05/92 12:52 EDT
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