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Industry

VIEWS: 9 PAGES: 100

									 WORLD TRADE                                                              G/SCM/N/123/JPN
                                                                          7 July 2005
 ORGANIZATION
                                                                          (05-3005)

 Committee on Subsidies                                                   Original: English
 and Countervailing Measures



                                             SUBSIDIES

                       New and Full Notification Pursuant to Article XVI:1 of
                         the GATT 1994 and Article 25 of the Agreement
                            on Subsidies and Countervailing Measures

                                               JAPAN


        The following communication, dated 28 June 2005, is being circulated at the request of the
Delegation of Japan.

                                          _______________


        Japan submits this new and full notification in compliance with its obligation under
Article XVI:1 of the General Agreement on Tariff and Trade(GATT)1994 and Article 25 of the
agreement on Subsidies and Countervailing Measures(“the Agreement” hereinafter).

        In this notification, Japan had indicated certain measures which may not constitute
“subsidies” under Article 1 of the Agreement and certain subsidies which may not be “specific” under
Article 2 of the Agreement in order to achieve the maximum transparency with regard to the relevant
programmes and measures effective within its territory.

         It should be recognized that, in accordance with Article 25.7 of the Agreement, the
notification of the programmes and measures does not prejudge its legal status, effects or nature under
GATT 1994 and the Agreement.
G/SCM/N/123/JPN
Page 2



                                                    TABLE OF CONTENTS

                                                                                                                                             Page

I.    INDUSTRY................................................................................................................................ 6
1.    Contract for Exchanging Electronic Data for Trade-related Procedures ........................... 6
2.    Programme to Promote Research and Development of Regional Technology.................... 7
3.    Energy Efficient Fluorocarbon-Alternative Synthesis Technology Development .............. 8
4.    Subsidy for Research and Development of Next Generation House Technology ............... 9
5.    Development of the Technology Related to High Efficiency Energy Use Housing
      System ...................................................................................................................................... 10
6.    Commission on the Research for the Manufacturing Industries Technology ................... 11
7.    Research for the Valuation Technical Skill Related to the High-Efficiency
      Energy Use Housing System .................................................................................................. 12
8.    Study on the Material Industries-related Technology Measures under the
      Consignment Fee for the Research on the Manufacturing Industries-related
      Technology Measures ............................................................................................................. 13
9.    Subsidy of Expense to Investigate the Development of Next Generation
      Airplanes .................................................................................................................................. 14
10.   Assistance for Development of Civil Aircraft ....................................................................... 15
11.   The Commission on the Research and Development of Remote Sensing
      Technology to be Applied Exploration for Oil Resources ................................................... 16
12.   Subsidy for Japan Small and Medium Enterprise Corporation ........................................ 17
13.   Subsidy for the Bekko and Ivory Industries ......................................................................... 18
14.   Subsidy for the Leather and Leather Goods Industries ...................................................... 19
15.   Subsidy for Promoting the Manufacture of Traditional Craft Products ........................... 20
16.   Contract for Development of Information Processing System and for Related
      Purposes ................................................................................................................................... 21
17.   Contract for the Equipment of Infrastructure Concerning Information and
      Economy .................................................................................................................................. 22
18.   Subsidy for Training Technicians of the Information Security Evaluation ...................... 23
19.   International Demonstration Research on Photovoltaic and Other Power
      Generation Systems ................................................................................................................ 24
20.   Subsidy for Exploration of Natural Gas ............................................................................... 25
21.   Subsidy for the Rationalization of Petroleum Refinery ...................................................... 26
22.   Subsidy for Promotion of Gas Oil Desulphurization ........................................................... 27
23.   Subsidy to the Cost of Projects for Improving Refining Technology of Oil
      Producing Countries and for Related Purposes ................................................................... 28
24.   Subsidy for Major Oil Spill Response Programme.............................................................. 29
                                                                                                                        G/SCM/N/123/JPN
                                                                                                                                 Page 3


25.   Subsidy for Loans to Construct Petroleum Storage Facilities ............................................ 30
26.   Subsidy for Loans to Purchase Petroleum and LPG to be Stored ..................................... 31
27.   Contract for Study Practical Application and Popularization of DME (Dimethyl
      Ether) ....................................................................................................................................... 32
28.   Subsidy for Overseas Coal Development Feasibility Survey .............................................. 33
29.   Subsidy for Promotion of Coal Production and Utilization Technology ........................... 34
30.   Contract for Developing Technology for the Exploration of Mineral Resources ............. 35
31.   Subsidy for Promoting Exploration of Mineral Resources ................................................. 36
32.   Subsidies for Measures to Promote Conversion into Natural Gas Taken by Local
      City-gas Suppliers ................................................................................................................... 37
33.   Subsidies for Interest on Loans to Introduce Specific Facilities Suitable for
      Alternative Energies to Oil..................................................................................................... 38
34.   Subsidies for Small and Medium-scale Hydropower Development ................................... 39
35.   Interest Subsidies for Small and Medium Scale Hydropower ............................................ 40
36.   Geothermal Energy Programme ........................................................................................... 41
37.   Contract for Investigation of Promoting the Development and Introduction of
      Hydro Power ........................................................................................................................... 42
38.   Subsidy for the Technology Development of Integrated Coal Gasification
      Combined Cycle Power Generation Plant ............................................................................ 43
39.   Subsidy for the Cost of Development of Waste Power Generation .................................... 44
40.   Subsidy for Development of High-Efficiency Waste Power Generation
      Technology ............................................................................................................................... 45
41.   Subsidies to Offset the Costs of Converting Old Coal-fired Thermal Power
      Generations to Natural Gas ................................................................................................... 46
42.   Subsidy for the Innovative and Viable Nuclear Energy Technology Development
      Project ...................................................................................................................................... 47
43.   Commission for Verification Tests on Decommissioning Technology for
      Commercial Nuclear Power Facilities ................................................................................... 48
44.   Commission for the Advancement of the Light Water Reactor Technology
      Confirmation Test and Others ............................................................................................... 49
45.   Grant for the Technical Development of a Full-MOX ABWR Plant System .................... 50
46.   Commission for Demonstration Test for New-type Power-generation Reactor
      Technologies ............................................................................................................................ 51
47.   Consignment Experimental and Research Expenses of Survey on Criteria of
      Radioactive Waste Disposal ................................................................................................... 52
48.   Contract for Improvement of Safety Analysis Codes Technologies ................................... 53
49.   Entrusted Contract for Principal Structure Safety Assessments ....................................... 54
50.   Safety Verification Analysis of Nuclear Power Facilities .................................................... 55
51.   Contract for Verification Tests for Spent Fuel Storage ...................................................... 56
52.   Environmental Influence Programme .................................................................................. 57
G/SCM/N/123/JPN
Page 4


53.    Research on International Harmonization of Technical Requirement .............................. 58
54.    Actual Proof Examinations for Smoothing the Tie of Distributed Power Supplies
       to Electric Power Systems ...................................................................................................... 59
55.    Safety Technology Programme .............................................................................................. 60
56.    Power Plant Assessment Programme .................................................................................... 61
57.    Research for the Promotion of Natural Gas in Regional Area ........................................... 63
58.    Contract for Research and Study to Promote Coal Supply from Foreign
       Countries.................................................................................................................................. 64
59.    Subsidy for Loans to the Pollution Prevention Fund........................................................... 65
60.    Contract to Research of Environmental Effect of Offshore Oil Development .................. 66
61.    Well Abandonment Programme ............................................................................................ 67
62.    Contract for Engineering Development to Prevent the Mine Damage .............................. 68
II.    FINANCE ................................................................................................................................ 69
63.    Tax Measures to Strengthen the Management of Small- and Medium-Sized
       Corporation ............................................................................................................................. 69
64.    Special Deduction for Expenditure on Prospecting for Domestic or Overseas
       Mineral Deposit ....................................................................................................................... 70
65.    Special Depreciation on Certain Machinery Used for Advanced Technology
       Industries in Certain Advanced Technology Industrial Group-site Areas........................ 71
66.    Special Depreciation on Certain Facilities for Enhancing the Control Method of
       the Production Process ........................................................................................................... 72
67.    Additional Depreciation on Fishing Boat (owned by persons or corporations
       which execute the management improvement plan of fishing industry) ........................... 73
68.    Additional Depreciation on the Machinery of Corporation which is provided in
       the plans to strengthen the management base ...................................................................... 74
69.    Additional Depreciation on Machinery of Corporations which carry out the
       plans for improvement of agriculture management ............................................................ 75
70.    Special Depreciation on the Payment to Specific Association ............................................. 76
71.    Reserve for Prevention from Mineral Pollution of Metal Mining ...................................... 77
72.    Reserve for Prevention of Certain Disasters ........................................................................ 78
73.    Reserve for Special Repairs ................................................................................................... 79
74.    Reserve for Searching out New Mineral Beds in Japan and abroad ................................. 80
75.    Finance Measures for Shochu B Manufactures ................................................................... 81
III.   AGRICULTURE .................................................................................................................... 82
76.    Measures for Rice, Wheat and Barley .................................................................................. 82
77.    Measures for Soybean............................................................................................................. 83
78.    Measures for Sugar ................................................................................................................. 84
79.    Measures for Milk and Dairy Products ................................................................................ 85
80.    Measures for Bovine Meat and Pigmeat ............................................................................... 88
                                                                                                                 G/SCM/N/123/JPN
                                                                                                                          Page 5


81.   Measures for Eggs ................................................................................................................... 89
82.   Measures for Vegetable .......................................................................................................... 90
83.   Measures for Fruits................................................................................................................. 91
84.   Measures for Cocoons............................................................................................................. 92
85.   Farmer's Pension Fund Subsidy ............................................................................................ 93
86.   Farming Modernization Fund Interest Subsidy .................................................................. 94
87.   Agriculture, Forestry and Fisheries Finance Corporation Subsidy ................................... 95
88.   Fisheries Modernization Fund Interest Subsidy .................................................................. 95
89.   Fund for the Projects Implemented by Regional Governments for Promoting
      Sustainable Fisheries .............................................................................................................. 96
90.   Fund for the Activities Implemented by Non-governmental Organizations for
      Promoting Sustainable Fisheries ........................................................................................... 97
91.   Wood Industry Upgrading Funds ......................................................................................... 98
IV.   TRANSPORT .......................................................................................................................... 99
92.   Grant for Promotion of Research and Development of Future Ships................................ 99
G/SCM/N/123/JPN
Page 6


I.    INDUSTRY

1.    Contract for Exchanging Electronic Data for Trade-related Procedures

1.    Title of the subsidy programme

      Contract for Exchanging Electronic Data for Trade-related Procedures

2.    Period covered by the notification

      4/2002 – 3/2003

3.    Policy objective and/ or purpose of the subsidy

      To promote exchanging electronic data for trade-related procedures .

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      Trade related companies

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 150million
      Fiscal year 2002 (settlement of accounts) ¥ 295million
      Fiscal year 2003 (settlement of accounts) ¥ 194million

9.    Duration of the subsidy and/or any other time-limits attached to it

      This programme started in April 2002, and finished in March 2004.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                    G/SCM/N/123/JPN
                                                                                             Page 7


2.    Programme to Promote Research and Development of Regional Technology

1.    Title of the subsidy programme

      Programme to Promote Research and Development of Regional Technology

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To contribute economic development through fundamental and creative R&D by utilization of
      the regional resources.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      Research organizations such as companies, research associations, public corporations or
      universities which are entrusted by the NEDO; a public body.

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 1,554million
      Fiscal year 2002 (settlement of accounts) ¥ 1,118million
      Fiscal year 2003 (settlement of accounts) ¥ 603million

9.    Duration of the subsidy and/or any other time-limits attached to it

      Fiscal year 1991 – Fiscal year 2004.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
Page 8


3.    Energy Efficient Fluorocarbon-Alternative Synthesis Technology Development

1.    Title of the subsidy programme

      Energy Efficient Fluorocarbon-Alternative Synthesis Technology Development

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      For materialization of the usage of a Fluorocarbon-Alternative which has no ozone layer
      damaging effects and minimal greenhouse effect based on a high-efficiency synthesis
      technology development

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      New Energy and Industrial Technology Development Organization

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2003 (settlement of accounts) ¥ 192 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      4/2002 – 3/2007

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                    G/SCM/N/123/JPN
                                                                                             Page 9


4.    Subsidy for Research and Development of Next Generation House Technology

1.    Title of the subsidy programme

      Subsidy for Research and Development of Next Generation House Technology

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      To promote the technology development for the sustainable housing

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      Association for Research and Development of House Technology Creating Life Values

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001(settlement of accounts) ¥ 178 million
      Fiscal year 2002(settlement of accounts) ¥ 247 million
      Fiscal year 2003(settlement of accounts) ¥ 297 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      4/2000 – 3/2005

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
Page 10


5.    Development of the Technology Related to High Efficiency Energy Use Housing System

1.    Title of the subsidy programme

      Development of the Technology Related to High Efficiency Energy Use Housing System

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      To promote the development of the technology in house which utilizes High-efficiency
      Energy

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Budgetary basis

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      Association for Research and Development of House Technology Creating Life Values

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2002 (settlement of accounts) ¥ 138 million
      Fiscal year 2003 (settlement of accounts) ¥ 140 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      4/2002 - 3/2005

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 11


6.    Commission on the Research for the Manufacturing Industries Technology

1.    Title of the subsidy programme

      Commission on the Research for the Manufacturing Industries Technology

2.    Period covered by the notification

      4/2003 - 3/2004

3.    Policy objective and/ or purpose of the subsidy

      The study which is necessary for the promotion of Manufacturing Industries, Housing
      Industry

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      Corporation, Foundation etc.

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2002 (settlement of accounts) ¥ 11 million
      Fiscal year 2003 (settlement of accounts) ¥ 11 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      4/2002 – 3/2007

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
Page 12


7.    Research for the Valuation Technical Skill Related to the High-Efficiency Energy Use
      Housing System

1.    Title of the subsidy programme

      Research for the Valuation Technical Skill Related to the High-Efficiency Energy Use
      Housing System

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To establish the valuation technical skill in house which utilizes High-efficiency Energy

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Budgetary basis

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      Association for Research and Development of House Technology Creating Life Values

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2003 (settlement of accounts) ¥ 80million

9.    Duration of the subsidy and/or any other time-limits attached to it

      4/2003―3/2005

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 13


8.    Study on the Material Industries-related Technology Measures under the Consignment
      Fee for the Research on the Manufacturing Industries-related Technology Measures

1.    Title of the subsidy programme

      Study on the Material Industries-related Technology Measures under the Consignment Fee for
      the Research on the Manufacturing Industries-related Technology Measures

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      Promotion measures of the user industries for fine ceramics through the study on utilization of
      ceramics in ceramic-related industries and development of research and development

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Budgetary Assistance

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Consignment fee

7.    To whom and how the subsidy is provided

      Japan Fine Ceramics Association, Japan Fine Ceramics Centre


8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2003 (settlement of accounts) ¥ 20million

9.    Duration of the subsidy and/or any other time-limits attached to it

      The contract for consignment starts in April 2002, and there is no time-limit attached to it.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
Page 14


9.    Subsidy of Expense to Investigate the Development of Next Generation Airplanes

1.    Title of the subsidy programme

      Subsidy of Expense to Investigate the Development of Next Generation Airplanes

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      This programme aims to promote the project formation capability through technological
      research for aircraft development.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      The Japan Aircraft Development Corp.(JADC)

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 160million
      Fiscal year 2002 (settlement of accounts) ¥ 123million
      Fiscal year 2003 (settlement of accounts) ¥ 145million

9.    Duration of the subsidy and/or any other time-limits attached to it

      4/1991 – 3/2007

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 15


10.   Assistance for Development of Civil Aircraft

1.    Title of the subsidy programme

      Assistance for Development of Civil Aircraft

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To promote the development of aircraft industry, and to contribute to the enhancement of
      industrial technology and the evolution of international exchange, through the promotion of
      the international collaborative joint project for development of aircraft and aero engines.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      The Law of Aircraft Industry Promotion

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      The Assistance is provided in the form of reimbursable grant only for international
      cooperative development projects which involve a great amount of risks, through the
      International Aircraft Development Fund.

7.    To whom and how the subsidy is provided

      The Japan Aircraft Development Corp. (JADC) , The Japanese Aero Engines Corp . (JAEC)

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 2,499million
      Fiscal year 2002 (settlement of accounts) ¥ 2,403million
      Fiscal year 2003 (settlement of accounts) ¥ 1,014million

9.    Duration of the subsidy and/or any other time-limits attached to it

      This programme started in April 1986, and there is no time limit attached to it.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
Page 16



11.   The Commission on the Research and Development of Remote Sensing Technology to be
      Applied Exploration for Oil Resources

1.    Title of the subsidy programme

      The commission on the Research and Development of Remote Sensing Technology to be
      Applied to Exploration for Oil Resources

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To implement research and development projects on the sensor on-boarding satelite for the
      purpose of improvement and accomplishment in relation to the remote sensing technology to
      be applied to exploration for oil resources.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      Earth Remote Sensing Data Analysis Centre, Japan Resources Observation System
      Organization

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 3,804million
      Fiscal year 2002 (settlement of accounts) ¥ 2,954million
      Fiscal year 2003 (settlement of accounts) ¥ 2,277million

9.    Duration of the subsidy and/or any other time-limits attached to it

      This programme started in April 1981, and there is no time limit attached to it.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 17


12.   Subsidy for Japan Small and Medium Enterprise Corporation

1.    Title of the subsidy programme

      Subsidy for Japan Small and Medium Enterprise Corporation

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      The promotion of the electronic commerce of the small enterprises of the textile industry, the
      support for educational training, the promotion of the silk goods

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      Japan Small and Medium Enterprise Corporation (JASMEC)


8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (budget) ¥ 181 million
      Fiscal year 2002 (budget) ¥ 151 million
      Fiscal year 2003 (budget) ¥ 151 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      4/1999-3/2009

10.   Statistical data permitting an assessment of the trade effects of a subsidy
               Production Import         Export Domestic Consumption
      2000 1,089,043t 1,692,321t 438,868t 2,353,328t
      2001 994,024t 1,717,365t 434,023t 2,302,676t
      2002 850,950t 1,668,381t 430,657t 2,132,261t
G/SCM/N/123/JPN
Page 18


13.   Subsidy for the Bekko and Ivory Industries

1.    Title of the subsidy programme

      Subsidy for the Bekko and Ivory Industries

2.    Period covered by the notification

      4/2003 - 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To provide relief to the bekko and ivory industries injured due to the prohibition of trade by
      the Convention on International Trade in Endangered Species of Wild Fauna and Flora
      (CITES).

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      The subsidy is provided to non-profit associations which conduct consulting services or
      maintaining of processing skill on bekko and ivory, etc. for the bekko and ivory industries. In
      addition, the associations consist of SMEs in this sector.

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 207 million
      Fiscal year 2002 (settlement of accounts) ¥ 101 million
      Fiscal year 2003 (settlement of accounts) ¥ 100 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      The subsidy was started in April 1991, and there is no time limit attached to it.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA(Trade of these goods are prohibited by CITES.)
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 19


14.   Subsidy for the Leather and Leather Goods Industries

1.    Title of the subsidy programme

      Subsidy for the Leather and Leather Goods Industries

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      To contribute to the sound development of SMEs in the leather and leather goods industries

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      The subsidy is provided to local governments or non-profit associations which conduct
      consulting services or personnel training, etc. for the leather and leather goods industries. In
      addition, the associations consist of mainly SMEs in this sector.

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001(settlement of accounts) ¥ 286 million
      Fiscal year 2002(settlement of accounts) ¥ 280 million
      Fiscal year 2003(settlement of accounts) ¥ 277 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      The subsidy was started in April 1971, and there is no time-limit attached to it.

10.   Statistical data permitting an assessment of the trade effects of a subsidy
      ( Unit: 100 Million yen ) Statistics on leather and leather goods
                           2001          2002         2003
      Production               6,750        5,944           NA
      Import                   3,041        2,925         2,943
      Export                     181          163           148
G/SCM/N/123/JPN
Page 20


15.   Subsidy for Promoting the Manufacture of Traditional Craft Products

1.    Title of the subsidy programme

      Subsidy for Promoting the Manufacture of Traditional Craft Products

2.    Period covered by the notification

      4/2003 - 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To promote Japanese traditional craft products made by traditional skills or ways.

4.    Background and authority for the subsidy

      Ministry of Economy Trade and Industry

5.    Legislation under which it is granted

      The Law on the Promotion for Traditional Craft Products

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      46 local governments (except Hokkaido)

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (budget) ¥ 187 million
      Fiscal year 2002 (budget) ¥ 200 million
      Fiscal year 2003 (budget) ¥ 200 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      The subsidy was started in April 1974, and there is no time-limit attached to it.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

                        '00              '01          '02
      Production      265,345          233,619    204,799 (million yen)
      Import              0                0            0
      Export            NA               NA           NA
      These goods are produced only in Japan. There is few amount of export because these are
      used in the Japanese life style.
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 21



16.   Contract for Development of Information Processing System and for Related Purposes

1.    Title of the subsidy programme

      Contract for Development of Information Processing System and for Related Purposes

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      R&D of the equipment of infrastructure in order to develop the information-oriented society
      in Japan

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      private-sector organization etc
      Japan Information Processing Development Corporation
      New Media Development Association

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 1,844 million
      Fiscal year 2002 (settlement of accounts) ¥ 2,598 million
      Fiscal year 2003 (settlement of accounts) ¥ 1,509 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      This programme was started in April 1973, and its termination is not determined

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
Page 22


17.   Contract for the Equipment of Infrastructure Concerning Information and Economy

1.    Title of the subsidy programme

      Contract for the Equipment of Infrastructure Concerning Information and Economy

2.    Period covered by the notification

      4/2002 – 3/2003

3.    Policy objective and/ or purpose of the subsidy

      The investigation of the equipment of infrastructure in order to promote the restructuring of
      the social system and structure by using of the information technology.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      Private-sector organization etc
      New Media Development Association
      Japanese Standards Association

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 4,320 million
      Fiscal year 2002 (settlement of accounts) ¥ 3,690 million
      Fiscal year 2003 (settlement of accounts) ¥ 2,100 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      4/2001-3/2006

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 23


18.   Subsidy for Training Technicians of the Information Security Evaluation

1.    Title of the subsidy programme

      Subsidy for Training Technicians of the Information Security Evaluation

2.    Period covered by the notification

      4/2003 - 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To facilitate the establishment and operation of the information security evaluation
      Scheme under the Common Criteria based upon ISO 15408

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      NA

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      Institutions which have capability to train those technicians

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 122 million
      Fiscal year 2002 (settlement of accounts) ¥ 97 million
      Fiscal year 2003 (settlement of accounts) ¥ 51 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      4/2000 – 3/2004

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
Page 24



19.   International Demonstration Research on Photovoltaic and Other Power Generation
      Systems

1.    Title of the subsidy programme

      International Demonstration Research on Photovoltaic and Other Power Generation Systems

2.    Period covered by the notification

      4/2003 - 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To improve the performance and reliability of photovoltaic and other power generation
      systems, utilizing the natural and social conditions of the counterpart countries.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      Corporations which are entrusted by the NEDO; a public body

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 277 million
      Fiscal year 2002 (settlement of accounts) ¥ 800 million
      Fiscal year 2003 (settlement of accounts) ¥ 1,897 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      4/1992 – 3/2005

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 25


20.   Subsidy for Exploration of Natural Gas

1.    Title of the subsidy programme

      Subsidy for Exploration of Natural Gas

2.    Period covered by the notification

      4/2002 – 3/2003

3.    Policy objective and/ or purpose of the subsidy

      To promote exploration and development of Japanese natural gas resources

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Petroleum and Combustible Natural Gas Resources Development Law

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      The subsidy is provided to owners who have natural gas mining rights

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 2,202 million
      Fiscal year 2002 (settlement of accounts) ¥ 1,746 million
      Fiscal year 2003 (settlement of accounts) ¥ 2,120 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      The subsidy was started in April 1952, and there is no time limit attached to it

10.   Statistical data permitting an assessment of the trade effects of a subsidy

                                              (Unit: million cubic meter)
                               2000FY           2001FY           2002FY
      (production)              2,499            2,466             2,752
      (import)                 75,156           73,035           71,632
      (consumption)            77,655           75,501           74,384
      (export)                      0                 0                0
G/SCM/N/123/JPN
Page 26


21.   Subsidy for the Rationalization of Petroleum Refinery

1.    Title of the subsidy programme

      Subsidy for the Rationalization of Petroleum Refinery

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To assist the rationalization (such as closure) of refineries

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Interest rate subsidy

7.    To whom and how the subsidy is provided

      Oil refining companies which have rationalized their business etc.

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 208 million
      Fiscal year 2002 (settlement of accounts) ¥ 55 million
      Fiscal year 2003 (settlement of accounts) ¥ 152 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      The subsidy was started in April 1986, and there is no time limit attached to it.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 27


22.   Subsidy for Promotion of Gas Oil Desulphurization

1.    Title of the subsidy programme

      Subsidy for Promotion of Gas Oil Desulphurization

2.    Period covered by the notification

      4/2003– 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To assist to advance of refineries, in order to promote gas oil desulphurization

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Interest rate subsidy

7.    To whom and how the subsidy is provided

      Oil refining companies

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts)         ¥ 57 million
      Fiscal year 2002 (settlement of accounts)         ¥ 30 million
      Fiscal year 2003 (settlement of accounts)         ¥ 12 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      1990FY-2006FY

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
Page 28


23.   Subsidy to the Cost of Projects for Improving Refining Technology of Oil Producing
      Countries and for Related Purposes

1.    Title of the subsidy programme

      Subsidy to the Cost of Projects for Improving Refining Technology of Oil Producing
      Countries and for Related Purposes

2.    Period covered by the notification

      4/2003 - 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To exchange experts, information and cooperative R&D for technologies related oil industry
      between Japan and oil-producing countries from Japan

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      Japan Cooperation Centre, Petroleum
      Petroleum Energy Centre

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001(settlement of accounts) ¥ 6,833 million
      Fiscal year 2002(settlement of accounts) ¥ 4,271 million
      Fiscal year 2003(settlement of accounts) ¥ 4,808 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      The programme started in April 1981, and no time limit is attached to it.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 29


24.   Subsidy for Major Oil Spill Response Programme

1.    Title of the subsidy programme

      Subsidy for Major Oil Spill Response Programme

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      To prepare the system which copes with major oil spill disaster at home and abroad.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grants

7.    To whom and how the subsidy is provided

      Petroleum Association of Japan

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001(settlement of accounts)    ¥ 733 million
      Fiscal year 2002(settlement of accounts)    ¥ 774 million
      Fiscal year 2003(settlement of accounts)    ¥ 712 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      The subsidy was started in 1990FY, and there is no time-limit attached to it.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
Page 30


25.   Subsidy for Loans to Construct Petroleum Storage Facilities

1.    Title of the subsidy programme

      Subsidy for Loans to Construct Petroleum Storage Facilities

2.    Period covered by the notification

      4/2002-3/2003

3.    Policy objective and/ or purpose of the subsidy

      To ensure stable supply of oil by taking measures to secure oil stockpiles

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      The subsidy is provided to Japan Development Bank, Okinawa Development Finance
      Corporation and Japan Oil, Gas and Metals National Corporation, those loan funds for
      construction of petroleum storage facilities in low interest rates.

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001(settlement to accounts) ¥ 31 million
      Fiscal year 2002(settlement to accounts) ¥ 6 million
      Fiscal year 2003(settlement to accounts) ¥\ 2 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      This programme was started in April 1981, and there is no time limit attached to it.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 31


26.   Subsidy for Loans to Purchase Petroleum and LPG to be Stored

1.    Title of the subsidy programme

      Subsidy for Loans to Purchase Petroleum and LPG to be Stored

2.    Period covered by the notification

      4/2002-3/2003

3.    Policy objective and/ or purpose of the subsidy

      To ensure stable supply of oil by taking measures to secure oil stockpiles

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      The subsidy is provided to Japan National Oil Corporation, etc., that loans funds for purchase
      of petroleum and LPG.

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001(settlement to accounts) ¥ 4,381 million
      Fiscal year 2002(settlement to accounts) ¥ 3,626 million
      Fiscal year 2003(settlement to accounts) ¥ 2,897 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      This programme was started in April 1972, and there is no time-limit attached to it.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
Page 32


27.   Contract for Study Practical Application and Popularization of DME (Dimethyl Ether)

1.    Title of the subsidy programme

      Contract for Study Practical Application and Popularization of DME (Dimethyl Ether)

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To study the practical application and popularization of DME (Dimethyl ether)

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      Liquefied Petroleum Gas Centre, The High Pressure Gas Safety Institute of Japan

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2002 (settlement of accounts) ¥ 598 million
      Fiscal year 2003 (settlement of accounts) ¥ 608 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      04/2002-03/2005

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      N/A
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 33


28.   Subsidy for Overseas Coal Development Feasibility Survey

1     Title of the subsidy programme

      Subsidy for Overseas Coal Development Feasibility Survey

2.    Period covered by the notification

      4/2003 - 3/2004

3.    Policy objective and/ or purpose of the subsidy

      Support to exploration and development of overseas coal resources by Japanese private
      companies through The New Energy and Industrial Technology Development Organization
      (NEDO) in order to help secure stable supply of coal resources for Japan’s future.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Law Concerning The Promotion of Development and Introduction of Alternative Energy
      Sources Assistance by budget.

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grants

7.    To whom and how the subsidy is provided

      The New Energy and Industrial Technology Development Organization (NEDO)

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal Year 2001(settlement of accounts) ¥ 50.4 million
      Fiscal Year 2002(settlement of accounts) ¥ 38.4 million
      Fiscal Year 2003(settlement of accounts) ¥ 10.4million

9.    Duration of the subsidy and/or any other time-limits attached to it

      The subsidy was started in April 1980, and there is no time limit attached to it.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      N/A
G/SCM/N/123/JPN
Page 34


29.   Subsidy for Promotion of Coal Production and Utilization Technology

1.    Title of the subsidy programme

      Subsidy for Promotion of Coal Production and Utilization Technology

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      Assistance for the development of technology for coal production and utilization to cope with
      the environmental problem

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      New Energy and Industrial Technology Development Organization (NEDO), Japan Coal
      Energy Centre, Centre for Coal Utilization Japan, etc.

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal Year 2001 (settlement of accounts)    ¥ 4,852 million
      Fiscal Year 2002 (settlement of accounts)    ¥ 3,424 million
      Fiscal Year 2003 (settlement of accounts)    ¥ 2,493 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      This programme started from 1993 and no specific time limit exists at the moment.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      N/A
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 35



30.   Contract for Developing Technology for the Exploration of Mineral Resources

1.    Title of the subsidy programme

      Contract for Developing Technology for the Exploration of Mineral Resources

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To develop more efficient technology for the exploration of mineral resources

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      Metal Mining Agency of Japan (MMAJ)

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 103 million
      Fiscal year 2002 (settlement of accounts) ¥ 86 million
      Fiscal year 2003 (settlement of accounts) ¥ 75 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      Fiscal year 1975 –

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      N/A
G/SCM/N/123/JPN
Page 36



31.   Subsidy for Promoting Exploration of Mineral Resources

1.    Title of the subsidy programme

      Subsidy for Promoting Exploration of Mineral Resources

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To promote the exploration of mineral resources in Japan carried out by small and medium-
      sized enterprises and to improve their mining technologies.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      The small and medium-sized mining enterprises are eligible for the subsidy if their capital
      does not exceed ¥ 100 million, or if the number of their full-time employees does not exceed
      1,000.

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 347 million
      Fiscal year 2002 (settlement of accounts) ¥ 236 million
      Fiscal year 2003 (settlement of accounts) ¥ 172 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      Fiscal year 2000 – 2004

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 37



32.   Subsidies for Measures to Promote Conversion into Natural Gas Taken by Local City-
      gas Suppliers

1.    Title of the subsidy programme

      Subsidies for Measures to Promote Conversion into Natural Gas Taken by Local City-gas
      Suppliers

2.    Period covered by the notification

      4/2003 - 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To promote introduction of natural gas that is one of the alternative energies to oil into local-
      city gas suppliers.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant
      Interest rate subsidy

7.    To whom and how the subsidy is provided

      Local city-gas suppliers

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001(settlement of amounts) ¥ 1,858 million
      Fiscal year 2002(settlement of amounts) ¥ 1,884 million
      Fiscal year 2003(settlement of amounts) ¥ 1,688 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      The subsidy was started in April 1985,and there is no time limits attached to it.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
Page 38


33.   Subsidies for Interest on Loans to Introduce Specific Facilities Suitable for Alternative
      Energies to Oil

1.    Title of the subsidy programme

      Subsidies for Interest on Loans to Introduce Specific Facilities Suitable for Alternative
      Energies to Oil

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      To promote introduction of natural gas that is one of the alternative energies to oil into local-
      city gas suppliers

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted
      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Interest rate subsidy

7.    To whom and how the subsidy is provided

      Development Bank of Japan

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001(settlement of amounts) ¥ 420 million
      Fiscal year 2002(settlement of amounts) ¥ 387 million
      Fiscal year 2003(settlement of amounts) ¥ 363 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      The subsidy was started in April 1985,and there is no time limit attached to it.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 39



34.   Subsidies for Small and Medium-scale Hydropower Development

1.    Title of the subsidy programme

      Subsidies for Small and Medium-scale Hydropower Development

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      To promote the development of small and medium-scale hydropower from the point of
      effectively utilizing indigenous energy resources, reduce initial generation cost by providing
      subsidies for construction cost.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      The subsidy is provided to electricity utilities, wholesale supplier and installer of in-house
      generator through the New Energy and Industrial Technology Development Organization
      (NEDO).

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 2,000 million
      Fiscal year 2002 (settlement of accounts) ¥ 991 million
      Fiscal year 2003 (settlement of accounts) ¥ 553 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      The subsidy was started in April 1980, and there is no time limit attached to it.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
Page 40


35.   Interest Subsidies for Small and Medium Scale Hydropower

1.    Title of the subsidy programme

      Interest Subsidies for Small and Medium Scale Hydropower

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To subsidize Interest for the construction of small and medium scale hydropower by New
      Energy Foundation (NEF) for decided period after the power plant starts

4.    Background and authority for the subsidy

      Ministry of Economy Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    From of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      New Energy Foundation (NEF)

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 260 million
      Fiscal year 2002 (settlement of accounts) ¥ 170 million
      Fiscal year 2003 (settlement of accounts) ¥ 169 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      Fiscal year 1985 - No time-limit attached to them.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 41



36.   Geothermal Energy Programme

1.    Title of the subsidy programme

      Geothermal Energy Programme
      1) Subsidy for the Geothermal Development Promotion Survey
      2) Subsidy for the Cost of Development of Geothermal Power Generation

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To assist the construction of geothermal power plants and the survey of geothermal
      development, etc. for the diffusion of geothermal energy utilization

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      The sub-programme 1 and 2 are provided to the New Energy and Industrial Technology
      Development Organization (NEDO).

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      1)      Fiscal year 2001 (settlement of accounts)   ¥   3,822million
              Fiscal year 2002 (settlement of accounts)   ¥   3,384million
              Fiscal year 2003 (settlement of accounts)   ¥   2,066million
      2)      Fiscal year 2001 (settlement of accounts)   ¥   1,027million
              Fiscal year 2002 (settlement of accounts)   ¥     428million
              Fiscal year 2003 (settlement of accounts)   ¥     513million

9.    Duration of the subsidy and/or any other time-limits attached to it

      1)      Fiscal Year 1980 - Fiscal Year 2010
      2)      Fiscal Year 1986 - Fiscal Year 2010

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
Page 42



37.   Contract for Investigation of Promoting the Development and Introduction of Hydro
      Power

1.    Title of the subsidy programme

      Contract for Investigation of Promoting the Development and Introduction of Hydro Power
      1)     Contract for Fundamental Investigation of Guiding the Development and Introduction
             of Small and Medium Hydro Power
      2)     Contract for Investigation of the Development of Technology for the Effective
             Utilization of Hydro Power Resources

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To promote the development of Hydro power which is oil-alternative Energy

4.    Background and authority for the subsidy

      Ministry of Economy Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    From of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      1)      New Energy Foundation
      2)      New Energy Foundation Pacific Consultants Co., LTD. CHUGOKU ELECTRIC
              POWER CO., INC.

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      1)      Fiscal year 2001 (settlement of accounts)             ¥ 648 million
              Fiscal year 2002 (settlement of accounts)             ¥ 508 million
              Fiscal year 2003 (settlement of accounts)             ¥ 637 million
      2)      Fiscal year 2001 (settlement of accounts)             ¥ 0 million
              Fiscal year 2002 (settlement of accounts)             ¥ 96 million
              Fiscal year 2003 (settlement of accounts)             ¥ 158 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      1)      This programme was started in April 1986,and there is no time-limit attached to it
      2)      Fiscal Year 2002 - Fiscal Year 2007
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 43



10.   Statistical data permitting an assessment of the trade effects of a subsidy
      NA

38.   Subsidy for the Technology Development of Integrated Coal Gasification Combined
      Cycle Power Generation Plant

1.    Title of the subsidy programme

      Subsidy for the Technology Development of Integrated Coal Gasification Combined Cycle
      Power Generation Plant

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      To develop the technology for Integrated Coal Gasification Combined Cycle Power
      Generation

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      Clean Coal Power R&D CO., LTD.

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 218 million
      Fiscal year 2002 (settlement of accounts) ¥ 367 million
      Fiscal year 2003 (settlement of accounts) ¥ 0 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      Fiscal year 1999 - Fiscal year 2009

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
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39.   Subsidy for the Cost of Development of Waste Power Generation

1.    Title of the subsidy programme

      Subsidy for the Cost of Development of Waste Power Generation

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      To assist the construction of waste power plants for the diffusion of waste energy utilization

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      Waste power producers

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001( Settlement of accounts ¥ 147 million
      Fiscal year 2002( Settlement of accounts ¥ 419 million
      Fiscal year 2003( Settlement of accounts ¥ 202 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      Fiscal year 1995 – Fiscal year 2004

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 45


40.   Subsidy for Development of High-Efficiency Waste Power Generation Technology

1.    Title of the subsidy programme

      Subsidy for Development of High-Efficiency Waste Power Generation Technology

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      To develop a new type of facility which can efficiently utilize the potential energy in waste,
      this project helps development of high-efficiency waste power generation technology.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      New Energy and Industrial Technology Development Organization (NEDO).

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 321 million
      Fiscal year 2002 (settlement of accounts) ¥ 529 million
      Fiscal year 2003 (settlement of accounts) ¥ 210 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      Fiscal year 1992 - Fiscal year 2003

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
Page 46



41.   Subsidies to Offset the Costs of Converting Old Coal-fired Thermal Power Generations
      to Natural Gas

1.    Title of the subsidy programme

      Subsidies to Offset the Costs of Converting Old Coal-fired Thermal Power Generations to
      Natural Gas

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      The purpose is to promote the conversion of industrial coal-fired boilers to natural gas as well
      as promoting the conversion of the now old coal-fired power generations that have long been
      used to highly efficient natural gas combined cycle power generation

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Law on Special Accounts for Electric Power Development Acceleration Measures1-3-4
      Ordinance of Law on Special Accounts for Electric Power Development Acceleration
      Measures 1-5-1

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      The government subsidizes10per cent of construction costs for high efficient LNG power
      plants to electric utilities.

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2002 (settlement of accounts) ¥ 0 million
      Fiscal year 2003 (settlement of accounts) ¥ 0million

9.    Duration of the subsidy and/or any other time-limits attached to it

      Fiscal Year 2002 - Fiscal Year 2012

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 47



42.   Subsidy for the Innovative and Viable Nuclear Energy Technology Development Project

1     Title of the subsidy programme

      Subsidy for the Innovative and Viable Nuclear Energy Technology Development Project

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      The government of Japan support the innovative and viable research & development activities
      of the private sector of in nuclear technology field, which enhance safety and economy of
      nuclear power plants and the nuclear fuel cycle facilities.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance By Budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      The Institute of Applied Energy etc.

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement to accounts) ¥ 2,113 million
      Fiscal year 2002 (settlement to accounts) ¥ 1,952 million
      Fiscal year 2003 (settlement to accounts) ¥ 1,843 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      FY2000-FY2007

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
Page 48



43.   Commission for Verification Tests on Decommissioning Technology for Commercial
      Nuclear Power Facilities

1.    Title of the subsidy programme

      Commission for Verification Tests on Decommissioning Technology for Commercial Nuclear
      Power Facilities

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      To develop necessary technologies for safe dismantling of nuclear power plants in Japan

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Commission

7.    To whom and how the subsidy is provided

      Nuclear Power Engineering Corporation, The Institute of Applied Energy

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001(settlement of accounts) ¥ 1,210 million
      Fiscal year 2002(settlement of accounts) ¥ 1,437 million
      Fiscal year 2003(settlement of accounts) ¥ 990 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      FY1981 - FY2003

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 49


44.   Commission for the Advancement of the Light Water Reactor Technology Confirmation
      Test and Others

1.    Title of the subsidy programme

      Commission for the Advancement of the Light Water Reactor Technology Confirmation Test
      and Others

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      New technologies investigation for the purpose to ensure the safety of Light Water Reactors

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    From of the subsidy (i.e. grant, loan, tax concession, etc)

      Commission

7.    To whom and how the subsidy is provided

      Nuclear Power Engineering Corporation, other public corporations which are entrusted by the
      METI.

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 760 million
      Fiscal year 2002 (settlement of accounts) ¥ 632 million
      Fiscal year 2003 (settlement of accounts) ¥ 493 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      FY1981-FY2007

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
Page 50


45.   Grant for the Technical Development of a Full-MOX ABWR Plant System

1.    Title of the subsidy programme

      Grant for the Technical Development of a Full-MOX ABWR Plant System

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      To promote development of a full MOX ABWR plant, in order to improve flexibility of MOX
      fuel utilization in LWR plants, and to contribute to keep plutonium balance with appropriate
      supply-demand relations.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    From of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      Electric Power Development Co., Ltd.

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001(settlement of accounts) ¥ 930 million
      Fiscal year 2002(settlement of accounts) ¥ 1,009 million
      Fiscal year 2003(settlement of accounts) ¥ 1,713 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      FY1996-FY2011

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 51



46.   Commission for Demonstration Test for New-type Power-generation Reactor
      Technologies

1.    Title of the subsidy programme

      Commission for Demonstration Test for New-type Power-generation Reactor Technologies

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      To develop technologies for maintaining safety of the fast breeder reactor in Japan

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Commission

7.    To whom and how the subsidy is provided

      The Institute of Applied Energy, THE JAPAN ATOMIC POWER COMPANY

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 416 million
      Fiscal year 2002(settlement of accounts) ¥ 411 million
      Fiscal year 2003(settlement of accounts) ¥ 430 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      FY1987-FY2004

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
Page 52



47.   Consignment Experimental and Research Expenses of Survey on Criteria of Radioactive
      Waste Disposal

1.    Title of the subsidy programme

      Consignment Experimental and Research Expenses of Survey on Criteria of Radioactive
      Waste Disposal

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      Contract research on criteria of radioactive waste disposal

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      Radioactive Waste Management Funding and Research Center and Institute of Research and
      Innovation, etc

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 5,765 million
      Fiscal year 2002 (settlement of accounts) ¥ 4,623 million
      Fiscal year 2003 (settlement of accounts) ¥ 4,460 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      Fiscal Year 1983 - Fiscal Year 2007

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      This subsidy has no effects on trade, because its purpose is survey on criteria of radioactive
      waste disposal.
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 53



48.   Contract for Improvement of Safety Analysis Codes Technologies

1.    Title of the subsidy programme

      Contract for Improvement of Safety Analysis Codes Technologies

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To enhance the function of safety examination on permit for setting up reactor by improving
      safety analysis codes which is necessary to cross-check of safety analysis calculation

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Entrusted Contract (September)
      Subsidy for Operating Expenses of Japan Nuclear Energy Safety Organization (October)

7.    To whom and how the subsidy is provided

      Nuclear power Engineering Corporation (September)
      Japan Nuclear Energy Safety Organization (October)

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 925 million
      Fiscal year 2002 (settlement of accounts) ¥ 927 million
      Fiscal year 2003 (settlement of accounts) ¥ 932million

9.    Duration of the subsidy and/or any other time-limits attached to it

      This programme was started in April 1980, and there is no time limit attached to it.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
G/SCM/N/123/JPN
Page 54



49.   Entrusted Contract for Principal Structure Safety Assessments

1.    Title of the subsidy programme

      Entrusted Contract for Principal Structure Safety Assessments
      1)      Non-destructive Inspection Technologies for Shroud Integrity Assessments
      2)      Development on Standards and Guides for Formation of Up-graded Inspection
              System on NPP

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      1)      Research and demonstration are to be made on inspection technologies for shroud and
              PLR piping, including ultrasonic inspection technologies, to realize adequate
              evaluation of the integrity of aged plants.

      2)      From the point of view of improvement in reliability of in-service inspection,
              detectability and sizing accuracy of ultrasonic inspection are to be confirmed, to
              demonstrate that the integrity of the plant is well maintained during its service period.
              In addition, research is to be made on such inspection technologies and techniques as
              are necessary for upgrading general inspection technology, in consideration of ageing
              of the plant steadily in progress.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Entrusted Contract (September)
      Subsidy for Operating Expenses of Japan Nuclear Energy Safety Organization (October)

7.    To whom and how the subsidy is provided

      Japan Power Engineering and Inspection Corporation (September)
      Japan Nuclear Energy Safety Organization (October)

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      1)      Fiscal year 2003 (settlement of accounts) ¥ 276million (September), ¥ 609million
              (October)
      2)      Fiscal year 2003 (settlement of accounts) ¥ 186million (September), ¥ 160million
              (October)
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 55



9.    Duration of the subsidy and/or any other time-limits attached to it

      Entrusted Contract started on April 2003, and it ended in September 2003.
      Subsidy for Operating Expenses started on October 2003, and it ended in March 2004.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA

50.   Safety Verification Analysis of Nuclear Power Facilities

1.    Title of the subsidy programme

      Safety Verification Analysis of Nuclear Power Facilities
      1)      Contract for establishment of nuclear power facilities’ inspection system
      2)      Non-destructive Inspection technologies on the Ni Alloy Welded Joint

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      1)      The objectives of this programme are to conduct necessary studies and preparations
              for the Government inspection, so that the public can feel confidence on nuclear
              safety: To further ensure safety of nuclear facilities through building up a stimulating
              mechanism so that licensees can implement safety activities: to improve effectiveness
              of the Government inspection by carrying out risk informed inspections and the plant
              performance evaluations: to help extensively licensees’ operations management and
              the Government inspection through widely collecting and analyzing the minor trouble
              information and operation procedures etc..

      2)      Inspection technologies are to be developed for Ni alloy welds by using such a
              technique as ultrasonic inspection method, and provisional code and standard are to
              be prepared, to realize improvement in reliability of aged plants.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Entrusted Contract (September)
      Subsidy for Operating Expenses of Japan Nuclear Energy Safety Organization (October)
G/SCM/N/123/JPN
Page 56


7.    To whom and how the subsidy is provided

      1)      Nuclear Power Engineering Corporation (September)
              Japan Nuclear Energy Safety Organization (October)
      2)      Japan Power Engineering and Inspection Corporation
              Japan Nuclear Energy Safety Organization (October)

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      1)      Fiscal year 2003 (settlement of accounts) ¥151million (September), ¥ 132million
              (October)
      2)      Fiscal year 2002 (settlement of accounts) ¥100million
              Fiscal year 2003 (settlement of accounts) ¥ 194million (September), ¥ 167million
              (October)

9.    Duration of the subsidy and/or any other time-limits attached to it

      Entrusted Contract
      This programme started on April 2003, and it ended in September 2003.
      Subsidy for Operating Expense started on October 2003, and it ended in March 2004.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA

51.   Contract for Verification Tests for Spent Fuel Storage

1.    Title of the subsidy programme

      Contract for Verification Tests for Spent Fuel Storage

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To verify the safety of spent fuel storage technology, in order to promote the interim storage
      of spent fuel.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    From of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 57


7.    To whom and how the subsidy is provided

      Nuclear Power Engineering Corporation and Central Research Institute of Electric Power
      Industry

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001(settlement of accounts) ¥ 766 million
      Fiscal year 2002(settlement of accounts) ¥ 959 million
      Fiscal year 2003(settlement of accounts) ¥ 725 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      Fiscal year 1999 - fiscal year 2004

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA

52.   Environmental Influence Programme

1.    Title of the subsidy programme

      Environmental Influence Programme
      1)     The Research on Influence of Hydropower
      2)     The Research on Influence of Electric Power Facilities

2.    Period covered by the notification

      4/2002-3/2004

3.    Policy objective and/ or purpose of the subsidy

      1)      River environment preservation is planned by researching the optimum method to
              recover environmental influence around Hydropower Station.
      2)      Not only special and objective investigations about the influence of the 50-60Hz
              commercial cycle electromagnetic field generated from electric power equipments to
              a living body are performed, but also collections, arrangements and offers of
              information inside and outside of the country about the influence of the
              electromagnetic field to the living body are performed.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract
G/SCM/N/123/JPN
Page 58


7.    To whom and how the subsidy is provided

      1)      JAPAN ELECTRIC POWER CIVIL ENGINEERING ASSOCIATION
      2)      Central Research Institute of Electric Power Industry
              Japan Electric Safety & Environment Technology Laboratories

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      1)      Fiscal year 2001 (settlement of accounts)        ¥ 38 million
              Fiscal year 2002 (settlement of accounts)        ¥ 63 million
              Fiscal year 2003 (settlement of accounts)        ¥ 169 million
      2)      Fiscal year 2001 (settlement of accounts)        ¥ 285 million
              Fiscal year 2002 (settlement of accounts)        ¥ 327 million
              Fiscal year 2003 (settlement of accounts)        ¥ 88 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      1)      FY 2001-FY 2005
      2)      FY 1993-FY 2003

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA

53.   Research on International Harmonization of Technical Requirement

1     Title of the subsidy programme

      Research on International Harmonization of Technical Requirement
      1)     The Research on Electric Utilities Area
      2)     The Research on Electrical Appliances and Materials Area

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      1)      To promote a rapid harmonization of Japanese technical requirements on electric
              utilities to international standards which are being amended every year by carrying
              out research on the status of international standards in this field.
      2)      To promote a rapid harmonization of Japanese technical requirements on electrical
              appliances and materials to international standards which are being amended every
              year by carrying out research on the status of international standards in this field.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry
                                                                                    G/SCM/N/123/JPN
                                                                                            Page 59


5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      1)      (i)Japan Power Engineering and inspection Corporation
              (ii)Japan Electric Association
      2)      Japan Electric Safety & Environment Technology Laboratories

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      1)      (i)Fiscal year 2001 (settlement of accounts)    ¥ 36 million
              Fiscal year 2002 (settlement of accounts)       ¥ 35 million
              Fiscal year 2003 (settlement of accounts)       ¥ 14 million
              (i)Fiscal year 2003 (settlement of accounts)    ¥ 14 million
      2)      Fiscal year 2001 (settlement of accounts)       ¥ 16 million
              Fiscal year 2002 (settlement of accounts)       ¥ 17 million
              Fiscal year 2003 (settlement of accounts)       ¥ 16 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      1) (i)FY 1997 - FY 2005                   (ii)FY 2003 - FY 2007
      2) FY 1983 - FY 2004

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA

54.   Actual Proof Examinations for Smoothing the Tie of Distributed Power Supplies to
      Electric Power Systems

1.    Title of the subsidy programme

      Actual Proof Examinations for Smoothing the Tie of Distributed Power Supplies to Electric
      Power Systems

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      Technical requirements to realize not only the introduction of distributed power supplies but
      also the safety of the electric power systems are investigated and analyzed using computer
      simulations.
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4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      New Energy and Industrial Technology Development Organization
8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy
      Fiscal year 2001 (settlement of accounts) ¥ 301 million
      Fiscal year 2002 (settlement of accounts) ¥ 239million
      Fiscal year 2003 (settlement of accounts) ¥ 99 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      FY 1998 - FY 2003

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA

55.   Safety Technology Programme

1.    Title of the subsidy programme

      Safety Technology Programme
      1)      The investigation about the adaptation of technical requirements on electrical
              appliances and materials to performance based regulation
      2)      The investigation of the technology for raising the safety of power generation
              facilities

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      1)      To promote the introduction of performance based concept to the Japanese technical
              requirements on electrical appliances and materials by carrying out research and
              analysis on safety factors and adequate means of regulations which are necessary to
              ensure safety of electrical appliances and materials
      2)      The investigation and research on safety of power generation facilities are advanced,
              much more improvement in safety is aimed at, and it contributes to carrying out
              smoothly of the location of power generation facilities.
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4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract
7.    To whom and how the subsidy is provided

      1)      Japan Electric Safety & Environment Technology Laboratories
      2)      Japan Hydraulic Gate & Penstock Association

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      1)      Fiscal year 2001 (settlement of accounts)        ¥ 11 million
              Fiscal year 2002 (settlement of accounts)        ¥ 10 million
              Fiscal year 2003 (settlement of accounts)        ¥ 10 million
      2)      Fiscal year 2003 (settlement of accounts)         ¥ 9 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      1)      FY 1999-FY 2004
      2)      FY 2003

10.   Statistical data permitting an assessment of the trade effects of a subsidy

NA

56.   Power Plant Assessment Programme

1.    Title of the subsidy programme

      Power Plant Assessment Programme
      1)     The Research on Impacts of Intake and Drainage in Large-scale Power Plant
      2)     The Research on Impacts of Thermal and Nuclear Power Plants
      3)     The Research on Impacts of Thermal power plants

2.    Period covered by the notification

      4/2003-3/2004
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3.    Policy objective and/ or purpose of the subsidy

      1)      The purpose of this project is to establish technologies for environment impact
              assessment of cooling water taken into and discharged by thermal or nuclear power
              plants, and also technologies for harmonizing integration of the niche, newly
              developed in the vicinity of power plants, into the existing marine ecosystem.

      2)      The purpose of this project is to ensure the proper development of power resources.
              Specific objectives are the demonstration of the availability of technologies for the
              assessment of environment impact caused by construction and operation of thermal or
              nuclear power plants, and then, the application of the results of demonstrating surveys
              to examination processes of power plant impact assessment.

      3)      The purpose of this project is to ensure the most prudent examination of power plant
              impact assessments for the development of thermal power plants using petroleum
              alternative fuel, such as liquefied natural gasses and coal.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      1)      Marine Ecology Research Institute
      2)      Marine Ecology Research Institute
              Central Research Institute of Electric Power Industry
      3)      Japan Wildlife Research Centre
              Marine Ecology Research Institute
              Central Research Institute of Electric Power Industry

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      1)      Fiscal year 2001 (settlement of accounts)        ¥ 465 million
              Fiscal year 2002 (settlement of accounts)        ¥ 509 million
              Fiscal year 2003 (settlement of accounts)        ¥ 506 million
      2)      Fiscal year 2001 (settlement of accounts)        ¥ 267 million
              Fiscal year 2002 (settlement of accounts)        ¥ 271 million
              Fiscal year 2003 (settlement of accounts)        ¥ 227 million
      3)      Fiscal year 2003 (settlement of accounts)        ¥ 29 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      1)      FY 1976 - FY 2008
      2)      FY 1975 - FY 2006
      3)      FY 2003 - FY 2007
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10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA

57.   Research for the Promotion of Natural Gas in Regional Area

1.    Title of the subsidy programme

      Research for the promotion of natural Gas in regional area

2.    Period covered by the notification

      4/2003 - 3/2004

3.    Policy objective and/ or purpose of the subsidy

      To examine, to develop technology and to give information for the equipment of
      infrastructure and for the promotion of natural gas

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      The Japan Gas Association

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 1178 million
      Fiscal year 2002 (settlement of accounts) ¥ 1333 million
      Fiscal year 2003 (settlement of accounts) ¥ 1265 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      FY1985 – FY2010

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
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58.   Contract for Research and Study to Promote Coal Supply from Foreign Countries

1.    Title of the subsidy programme

      Contract for Research and Study to Promote Coal Supply from Foreign Countries

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      To contribute to a stable supply of coal, by application of the safety technologies accumulated in
      Japan as well as development of necessary safety technologies matched for the actual condition of
      each coal producing country as preventive measures for serious accidents in coal mines.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      Japan Coal Energy Centre

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts)     ¥ 581 million
      Fiscal year 2002 (settlement of accounts)     ¥ 582 million
      Fiscal year 2003(settlement of accounts)      ¥ 483 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      FY1996-FY2006

10.   Statistical data permitting an assessment of the trade effects of a subsidy

                                (Unit: thousand tons)
      COAL             2000FY 2001FY 2002CY
      production          2,974     3,208      1,305
      Import            149,441 151,734 162,669
      consumption       149,330 151,699 154,920
      Export                  0          0         0
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59.   Subsidy for Loans to the Pollution Prevention Fund

1.    Title of the subsidy programme

      Subsidy for Loans to the Pollution Prevention Fund

2.    Period covered by the notification

      4/2003-3/2004

3.    Policy objective and/ or purpose of the subsidy

      The policy objective of this programme is to prevent the pollution caused by metal mines
      smoothly and effectively.

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      The Law of Japan Oil, Gas and Metals National Corporation

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Grant

7.    To whom and how the subsidy is provided

      The subsidy is provided to owners who have mining rights, through the Japan Oil, Gas and
      Metals National Corporation in the form of Loans.

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2001 (settlement of accounts) ¥ 34 million
      Fiscal year 2002 (settlement of accounts) ¥ 29 million
      Fiscal year 2003 (settlement of accounts) ¥ 23 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      This programme was started in April 1973, and its termination is not determined.

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
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60.   Contract to Research of Environmental Effect of Offshore Oil Development

1.    Title of the subsidy programme

      Contract to Research of Environmental Effect of Offshore Oil Development

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      Research of environmental effect by offshore oil development

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      Engineering Advancement Association of Japan

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2003 (settlement of accounts) ¥ 78 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      FY2003 - FY2005

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA.
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61.     Well Abandonment Programme

1.      Title of the subsidy programme

        Well Abandonment Programme
        1)     Contract for Research and Proof to Identify a Location of Neglected Well in the
               Ground
        2)     Subsidy for Oil Well Abandonment

2.      Period covered by the notification

        4/2003 – 3/2004

3.      Policy objective and/ or purpose of the subsidy

        1)      Establishment of the method that it identify a location of neglected well in the ground
        2)      To prevent the pollution caused by oil well that had been neglected to abandon.

4.      Background and authority for the subsidy

        Ministry of Economy, Trade and Industry

Legislation under which it is granted

        Assistance by budget

6       Form of the subsidy (i.e. grant, loan, tax concession, etc)

        1)      Contract
        2)      Grant

7.      To whom and how the subsidy is provided

        1)      Engineering Advancement Association of Japan
        2)      The subsidy is provided to Local government who will abandon oil well, directly
                from Government.

8.      Subsidy per unit, or in cases where this is not possible, total amount or annual amount
        budgeted for that subsidy

        1)      Fiscal year 2003 (settlement of accounts) ¥ 138 million
        2)      Fiscal year 2003 (settlement of accounts)      no result

9.      Duration of the subsidy and/or any other time-limits attached to it

        1)      FY2003 - FY2005
        2)      FY2003 - FY2008

10.     Statistical data permitting an assessment of the trade effects of a subsidy

NA
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62.   Contract for Engineering Development to Prevent the Mine Damage

1.    Title of the subsidy programme

      Contract for Engineering Development to Prevent the Mine Damage

2.    Period covered by the notification

      4/2003 – 3/2004

3.    Policy objective and/ or purpose of the subsidy

      Engineering development for energy saving when carrying out processing mine water

4.    Background and authority for the subsidy

      Ministry of Economy, Trade and Industry

5.    Legislation under which it is granted

      Assistance by budget

6.    Form of the subsidy (i.e. grant, loan, tax concession, etc)

      Contract

7.    To whom and how the subsidy is provided

      Metal Mining Agency of Japan (from Feb.2004, Japan Oil Gas and Metals National
      Corporation)

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Fiscal year 2003 (settlement of accounts) ¥ 72 million

9.    Duration of the subsidy and/or any other time-limits attached to it

      FY2003 – FY2006

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      NA
                                                                                   G/SCM/N/123/JPN
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II.   FINANCE

63.   Tax Measures to Strengthen the Management of Small- and Medium-Sized Corporation

1.    Title of the Subsidy programme

      Tax Measures to Strengthen the Management of Small-and Medium-Sized Corporations

2.    Period covered by the notification

      4/03-3/04

3.    Policy objective and/or purpose of the subsidy

      (a)     Improvement of the management of the agricultural processing business
      (b)     support of the development of the new business

4.    Background and authority for the subsidy

      Ministry of Finance

5     Legislation under which it is granted

      Special Taxation Measures Law

6.    From of the subsidy (i.e. grant, loan, tax concession, etc)

      Tax deferral or tax credit

7.    To whom and how the subsidy is provided

      (a)     Small and medium sized enterprises engaging in the agricultural processing
              businesses
      (b)     Small and medium-sized enterprises which operate the specific businesses which is
              under the influence of the remarkable changes of the economic environment

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Choice of special depreciation of 30 per cent of the acquisition cost or tax credit of 7 per cent
      of the acquisition cost on the equipment. As for leasing, tax credit on the 60 per cent of the
      leasing fee is permitted.

9.    Duration of the subsidy and/or any other time-limits attached to it

      Between 1 April 1987 and 31 March 2005
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10.   Statistical data permitting an assessment of the trade effects of a subsidy

      Production of main industries (a)
                            2001FY         2002FY       2003FY
      Cheese                    123           123          126          (thousand ton)
      Polished Barley           164           176          189               〃
      Wheat Flour             4,909         4,909        4,981               〃
      Not available for (b)

64.   Special Deduction for Expenditure on Prospecting for Domestic or Overseas Mineral
      Deposit

1.    Title of the Subsidy programme

      Special Deduction for Expenditure on Prospecting for Domestic or Overseas Mineral Deposit

2.    Period covered by the notification

      4/03-3/04

3.    Policy objective and/or purpose of the subsidy

      To ensure continuity of mining business

4.    Background and authority for the subsidy

      Ministry of Finance

5.    Legislation under which it is granted

      Special Taxation Measures Law

6.    From of the subsidy(i.e. grant, loan, tax concession, etc)

      Deduction from taxable income

7.    To whom and how the subsidy is provided

      A person or a corporation engaging in mining industry

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      The lowest of the following three amounts may be deducted from taxable income.
      (a)    the amount of the prospecting costs incurred, including depreciation expenses
             allowed on machinery and equipment used for prospecting
      (b)    the amount added back to the taxable income from the prospecting cost reserve
      (c)    the amount of corporation income for the business year

9.    Duration of the subsidy and/or any other time-limits attached to it

      Between 1 April 1965 and 31 March 2007
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10.Statistical data permitting an assessment of the trade effects of a subsidy

      The amount of domestic production of minerals (thousand ton)
                      2001Y             2002Y           2003Y
        copper        0.7 ( 0.1%)       1.5 ( 0.1%)      -     (-)
        lead          5.0 ( 4.0%)       5.7 ( 4.7%)     5.7 ( 5.3%)
        zinc         44.5 (7.2%)       42.9 ( 7.1%)    44.6 ( 7.6%)

      NB        The Percentage is derived from the following:
                The amount of Domestic production / (Domestic production + imports )

65.     Special Depreciation on Certain Machinery Used for Advanced Technology Industries
        in Certain Advanced Technology Industrial Group-site Areas


1.      Title of the Subsidy programme

        Special Depreciation on Certain Machinery used for Advanced Technology Industries in
        Certain Advanced Technology Industrial Group-site Areas

2.      Period covered by the notification

        4/03-3/04

3.      Policy objective and/or purpose of the subsidy

        Promotion of the industrial development in certain areas, based on the advanced technology
        industries

4.      Background and authority for the subsidy

        Ministry of Finance

5.      Legislation under which it is granted

        Special Taxation Measures Law

6       From of the subsidy(i.e. grant, loan, tax concession, etc)

        Tax deferral

7.      To whom and how the subsidy is provided

        Corporations engaging in the qualified advanced technology industries

8.      Subsidy per unit, or in cases where this is not possible, total amount or annual amount
        budgeted for that subsidy

        Special initial depreciation of 8 per cent or 15 per cent of acquisition cost is granted for the
        advanced technology industrial machinery
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9.       Duration of the subsidy and/or any other time-limits attached to it

         Between 1 April 1999 and 31 March 2005

10.      Statistical data permitting an assessment of the trade effects of a subsidy

         Industrial shipment figures

             Advanced technology industrial group-site           Certain advanced technology industrial group-
      Year       areas (billion yen)                                  site areas (billion yen)
      1998                       63,480.0                                              33,053.5
      1999                       60,962.7                                              31,970.2
      2000                       62,989.2                                                 ―

66.      Special Depreciation on Certain Facilities for Enhancing the Control Method of the
         Production Process

1.       Title of the Subsidy programme

         Special Depreciation on Certain Facilities for Enhancing the Control Method of the
         Production Process

2.       Period covered by the notification

         4/03-3/04

3.       Policy objective and/or purpose of the subsidy

         Facilitate the enhancing the control method of the food production process

4.       Background and authority for the subsidy

         Ministry of Finance

5.       Legislation under which it is granted

         Special Taxation Measures Law

6.       From of the subsidy(i.e. grant, loan, tax concession, etc)

         Tax deferral

7.       To whom and how the subsidy is provided

         Corporations engaging in food production industries, whose plans to enhance the control
         method of the food production are approved by the Minister of Agriculture, Forestry and
         Fisheries
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8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Special initial depreciation of 6 per cent or 12 per cent of acquisition cost is granted for
      enhancing the control method of food processing industry.

9.    Duration of the subsidy and/or any other time-limits attached to it

      Between 1 July 1998 and 30 June 2003

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      Production of main specified businesses
                              2000Y             2001Y               2002Y
      processed meats           520              519                 503 (thousand ton)
      packed food            5,129              4,820              4,613        〃
      milk and dairy goods 5,788                5,683               5,590 (ton thousand kiloliter)

67.   Additional Depreciation on Fishing Boat (owned by persons or corporations which
      execute the management improvement plan of fishing industry)

1.    Title of the Subsidy programme

      Additional Depreciation on Fishing Boat (owned by persons or corporations which execute
      the management improvement plan of fishing industry)

2.    Period covered by the notification

      4/03-3/04

3.    Policy objective and/or purpose of the subsidy

      Support of management improvement of fishing industry.

4.    Background and authority for the subsidy

      Ministry of Finance

5.    Legislation under which it is granted

      Special Taxation Measures Law

6.    From of the subsidy(i.e. grant, loan, tax concession, etc)

      Tax deferral

7.    To whom and how the subsidy is provided

      Fishing enterprises certified under the improvement plan provided in the Special Measures
      Law for Improvement and Reconstruction of Fisheries Management.
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8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Additional depreciation of 14 per cent is granted for fishing boats for 5 years.

9.    Duration of the subsidy and/or any other time-limits attached to it

      Between 1 July 2000 and 31 March 2004

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      Not available

68.   Additional Depreciation on the Machinery of Corporation which is provided in the
      plans to strengthen the management base

1.    Title of the Subsidy programme

      Additional Depreciation on the Machinery of Corporation which is provided in the plans to
      strengthen the management base

2.    Period covered by the notification

      4/03-3/04

3.    Policy objective and/or purpose of the subsidy

      Strengthening of the management base of small-and medium sized enterprises which operate
      the specific businesses

4.    Background and authority for the subsidy

      Ministry of Finance

5.    Legislation under which it is granted

      Special Taxation Measures Law

6.    From of the subsidy (i.e. grant, loan, tax concession, etc)

      Tax deferral

7.    To whom and how the subsidy is provided

      Small-and medium sized enterprises which operate the specific businesses, who is a
      constituent member of the association whose plan to strengthen the management base is
      approved
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8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Additional depreciation of 27 per cent is granted for certain buildings and machinery for 5
      years.

9.    Duration of the subsidy and/or any other time-limits attached to it

      For 5 years after the approval of the plan to strengthen the management base

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      Concerning Law on Supporting Business Innovation of Small and Medium Enterprises
      Sales or transaction                                                 (million yen)
                                             2001Y                  2002Y           2003Y
      manufacturing industry
      Electric Planting industry            409,224                435,800         467,591
      Japanese sake                         667,978                    ―                 ―
      Shipbuilding, excluding more
      than 10 thousand-ton ship.
      and Ship Machinery Industries       1,041,140               1,078,126              ―

69.   Additional Depreciation on Machinery of Corporations which carry out the plans for
      improvement of agriculture management

1.    Title of the Subsidy programme

      Additional depreciation on machinery of corporations which carry out the plans for
      improvement of agriculture management

2.    Period covered by the notification

      4/03-3/04

3.    Policy objective and/or purpose of the subsidy

      Strengthening of the management of forestry and improvement of number of labourers who
      are engaged in forestry

4.    Background and authority for the subsidy

      Ministry of Finance

5.    Legislation under which it is granted

      Special Taxation Measures Law

6.    From of the subsidy (i.e. grant, loan, tax concession, etc)

      Tax deferral
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7.    To whom and how the subsidy is provided

      (a)     A person and a corporation engaging in forestry on a large scale, whose plans for
              improvement of forestry management approved by the Minister of Agriculture,
              Forestry and Fishery
      (b)     A person and a corporation engaging in produce materials whose plans for
              cooperative improvement of forestry approved by the Minister of Agriculture,
              Forestry and Fishery

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Additional depreciation of 12 per cent is granted for forestry machinery for 5 years.

9.    Duration of the subsidy and/or any other time-limits attached to it

      For 5 years after approval of a plan

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      Not available for (a)
      Production (b)                                               (thousand ㎥)
                               2001Y            2002Y              2003Y
      Production               15,774           15,092             15,171

70.   Special Depreciation on the Payment to Specific Association

1.    Title of the Subsidy programme

      Special Depreciation on the Payment to Specific Association

2.    Period covered by the notification

      4/03-3/04

3.    Policy objective and/or purpose of the subsidy

      Development of new products or new technology

4.    Background and authority for the subsidy

      Ministry of Finance

5.    Legislation under which it is granted

      Special Taxation Measures Law

6.    From of the subsidy(i.e. grant, loan, tax concession, etc)

      Tax deferral
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7.    To whom and how the subsidy is provided

      A member of the specific association

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Special depreciation of all the amounts which are paid by the member of the association as
      the acquisition cost of assets used for research and development work which belong to the
      association

9.    Duration of the subsidy and/or any other time-limits attached to it

      Till 31 March 2005

10.   Statistical data permitting an assessment of the trade effects of a subsidy

      Concerning Law on Supporting Business Innovation of Small and Medium Enterprises
      Sales or transaction                                                       (million yen)
                                                            2001Y       2002Y 2003Y
      manufacturing industry
      Electric Planting industry              409,224       435,800     467,591
      Japanese sake                           667,978            ―           ―
      Shipbuilding, excluding more
      than 10 thousand-ton ship
      and Ship Machinery Industries        1,041,140      1,078,126          ―

71.   Reserve for Prevention from Mineral Pollution of Metal Mining

1.    Title of the Subsidy programme

      Reserve for Prevention from Mineral Pollution of Metal Mining

2.    Period covered by the notification

      4/03-3/04

3.    Policy objective and/or purpose of the subsidy

      Mineral pollution prevention relating to metal mining

4.    Background and authority for the subsidy

      Ministry of Finance

5.    Legislation under which it is granted

      Special Taxation Measures Law
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6.    From of the subsidy (i.e. grant, loan, tax concession, etc)

      Tax deferral

7.    To whom and how the subsidy is provided

      A person or a corporation engaging in the mining industry

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Deduction of the amounts accumulated in the Metal Mining Agency of Japan as the reserve
      for prevention of mineral pollution.
      (When the expense for prevention of mineral pollution is paid, the reserve corresponding to
      the cost is included in the profit)

9.    Duration of the subsidy and/or any other time-limits attached to it

      Between 1 April 1974 and 31 March 2006

10.   Statistical data permitting an assessment of the trade effects of a subsidy
      The amount of domestic production of minerals              (thousand ton)
                                 2001Y            2002Y            2003Y
      copper                     0.7(0.1%)       1.5(0.1%)          - (-)
      lead                       5.0(4.0%)       5.7(4.7%)         5.7(5.3%)
      zinc                      44.5(7.2%)      42.9(7.1%)       44.6(7.6%)
      NB The Percentage is derived from the following:
           The amount of Domestic production / ( Domestic production + imports )

72.   Reserve for Prevention of Certain Disasters

1.    Title of the Subsidy programme

      Reserve for prevention of certain disasters

2.    Period covered by the notification

      4/03-3/04

3.    Policy objective and/or purpose of the subsidy

      To prevent the disasters from the quarrying

4.    Background and authority for the subsidy

      Ministry of Finance

5.    Legislation under which it is granted

      Special Taxation Measures Law
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6.    From of the subsidy (i.e. grant, loan, tax concession, etc)

      Tax deferral

7.    To whom and how the subsidy is provided

      A person and a corporation in the quarrying industry or open-pit coal mining company

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Deduction of the amounts credited to reserves for the expense to prevent disasters after
      mining
      (When the expense is paid, the reserve corresponding to the cost is included in the profit)

9.    Duration of the subsidy and/or any other time-limits attached to it

      Between 1 April 1991 and 31 March 2005

10.   Statistical data permitting an assessment of the trade effects of a subsidy

       Production of limestone ore                           (thousand ton)
                        2001FY          2002FY           2003FY
      production        179,683         168,109          163,522
      import                285             331              383
      export              2,470           2,168            2,618


73.   Reserve for Special Repairs

1.    Title of the Subsidy programme

      Reserve for Special Repairs

2.    Period covered by the notification

      4/03-3/04

3.    Policy objective and/or purpose of the subsidy

      To equalize each year's cost of repairs

4.    Background and authority for the subsidy

      Ministry of Finance

5.    Legislation under which it is granted

      Special Taxation Measures Law

6.    From of the subsidy (i.e. grant, loan, tax concession, etc)

      Tax deferral
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7.    To whom and how the subsidy is provided

      A corporation possessing vessels or blast furnaces etc.

8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Deduction of the amounts credited to the reserves for the assumed cost of the special repairs
      (When the cost is paid, the reserve corresponding to the cost is included in the profit)

9.    Duration of the subsidy and/or any other time-limits attached to it

      No time limits

10.   Statistical data permitting an assessment of the trade effects of a subsidy

       Sales and export amounts of shaft furnace makers      (million yen)
                        2000FY            2001FY         2002FY
      sales            5,316,548         4,916,406      5,008,883
      export           1,214,933         1,336,749      1,303,647


74.   Reserve for Searching out New Mineral Beds in Japan and abroad

1.    Title of the Subsidy programme

      Reserve for Searching out New Mineral Beds in Japan and abroad

2.    Period covered by the notification
      4/03-3/04

3.    Policy objective and/or purpose of the subsidy

      To promote the exploitation of mineral resources

4.    Background and authority for the subsidy

      Ministry of Finance

5.    Legislation under which it is granted

      Special Taxation Measures Law

6.    From of the subsidy (i.e. grant, loan, tax concession, etc)

      Tax deferral

7.    To whom and how the subsidy is provided

      A person and a corporation engaging in mining industry
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8.    Subsidy per unit, or in cases where this is not possible, total amount or annual amount
      budgeted for that subsidy

      Deduction of the amounts credited to the reserves which correspond to 12 per cent of the sales
      amount of the minerals
      (After 3 years following the transfer to the reserves, the reserve is included in the profit)

9.    Duration of the subsidy and/or any other time-limits attached to it

      Between 1 April 1965 and 31 March 2007

10.   Statistical data permitting an assessment of the trade effects of a subsidy

       The amount of domestic production of minerals        (thousand ton)
                   2001Y              2002Y                    2003Y
      copper      0.7 ( 0.1%)       1.5 ( 0.1%)                - (-)
      lead        5.0 ( 4.0%)       5.7 ( 4.7%)               5.7 (5.3%)
      zinc      44.5 (7.2%)        42.9 ( 7.1%)             44.6 (7.6%)

      NB The Percentage is derived from the following:
         The amount of Domestic production / ( Domestic production + imports )

75.   Finance Measures for Shochu B Manufactures

1.    Title of the subsidy programme

      Finance Measures for Shochu B Manufactures

2.    Period covered by the notification

      4/03-3/04

3.    Policy objective and/or purpose of the subsidy.

      To reform the structure of Shochu B industry and to help the modernization of its environment
      protection facilities

4.    Background and authority for the subsidy

      Ministry of Finance

5.    Legislation under which it is granted

      Special Measures Law concerning the stability of the Sake Brewing and Related Manufacture

6.    Form of the subsidy (i.e., grant, loan, tax concession, etc.).

      Interest-free loan to “the Shochu B Manufactures Industry funds”
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7.     To whom and how the subsidy is provided

       Japan Brewers Association

8.     Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
       budgeted for that subsidy

       The Funds’ running profit ¥ 1.03 billion

9.     Duration of the subsidy and/or any other time limits attached to it

       Duration of the interest-free loan is limited to 10 years

10.    Statistical data permitting an assessment of the trade effects of the subsidy

       Quantity of Shipment of Shochu B (kl)

               Year     2001     2002    2003
               Domestic 361,474 386,347 447,786
               Import        139     489   1,569
               total     361,613 386,836 449,355

III.   AGRICULTURE

76.    Measures for Rice, Wheat and Barley

1.     Title of the subsidy programme

       Measures for Rice, Wheat and Barley

2.     Period covered by the notification

       Fiscal year 2002 (April 2002-March 2003)

3.     Policy objective and/or purpose of the subsidy

       The purposes of the programme are to ensure stable supply-demand and price of staple food
       (rice, wheat and barley) so as to stabilize national life and economy.

4.     Background and authorization for the subsidy

       Ministry of Agriculture, Forestry and Fisheries

5.     Legislation under which it is granted

       The Law for Stabilization of Supply-Demand and Price of Staple Food
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6.          Form of the subsidy/to whom and how the subsidy is provided

            Along with the introduction of Law for Stabilization of Supply, Demand and Price of Staple
            Food (the Staple Food Law) in 1996, Rice Farming Income Stabilization Programme has been
            in place since 1998, aiming at mitigating the negative effects on rice producers` managements
            caused by the decline in the prices of voluntarily marketed rice.
            The Government purchase of rice is limited only to minimum amount necessary to form
            public stockholding for food security purposes.
            Regarding wheat and barley, the Wheat and Barley Farming Income Stabilization Fund has
            been in place in order to stabilize producers managements in 2000.
            As for barley for feed, the Government provides a compensatory payment for producers. A
            certain portion of producers' income is provided through producers' associations in order to
            encourage production and ensure smooth distribution of barley for feed.

7.          Amount of the subsidy

            FY 2001 ¥ 183 billion
            FY 2002 ¥ 182 billion

8.          Duration of the subsidy and/or any other time-limits attached to it

            Duration of the subsidy is not clearly specified, since the subsidy is determined and provided
            based on a fiscal year.

9.          Statistical data
                                                                                          (unit: thousand tons)
       Item           Fiscal Year      Production         Consumption              Import              Export
                      2000             9,490               9,790                   879                462
     Rice             2001             9,057               9,638                   786                603
                      2002             8,889               9,459                   882                222
                       2000             688                6,311                  5,688                0
     Wheat            2001              700                6,227                  5,624                0
                      2002              829                6,203                  4,973                0
                       2000             214                2,627              2,439                    0
     Barley           2001              207                2,548              2,154                    0
                      2002              217                2,455              2,142                    0

77.         Measures for Soybean

1.          Title of the subsidy programme

            Measures for Soybean

2.          Period covered by the notification

            Fiscal year 2002 (April 2002-March 2003)
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3.        Policy objective and / or purpose of the subsidy

          The purposes of the programme are to maintain soybean production and to stabilize farmers'
          income.

4.        Background and authorization for the subsidy

          Ministry of Agriculture, Forestry and Fisheries

5.        Legislation under which it is granted

          Temporary Measure Act for Subsidizing Producers of Soybean

6.        Form of the subsidy / To whom and how the subsidy is provided

          The Government provides a subsidy, based on the volume of sales of soybean and the
          common unit price determined in the previous year, for the soybean producers through the
          producers’ association.
          And the Government makes a payment to the fund along with producers contribution, aiming
          at mitigating the negative effects on soybean producers’ managements caused by the decline
          in the market prices of soybean. When the market prices fall below the standard prices, the
          fund provides a compensatory payment, which is 80 per cent of the difference between two
          prices.

7.        Amount of the subsidy

          FY 2001 ¥ 18,516 million
          FY 2002 ¥ 26,610 million

8.        Duration of the subsidy and / or any other time limits attached to it

          Duration of the subsidy is not clearly specified, since the subsidy is determined and provided
          based on a fiscal year.


9.        Statistical data
                                                                                       (unit: thousand tons)
        Item        Fiscal Year       Production        Consumption               Import            Export
                    2000             235                 4,831               4,829                 0
     Soybeans       2001             271                 4,940               4,832                 0
                    2002             270                 5,172               5,039                 0

78.       Measures for Sugar

1.        Title of the subsidy programme

          Measures for Sugar
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2.       Period covered by the notification

         Fiscal year 2002(April 2002-March 2003)

3.       Policy objective and / or purpose

         The purposes of the programme are to safeguard the income of the farmers who produce
         sweetening resource crops and to contribute to stabilizing national living conditions through
         adjusting prices of sugar.

4.       Background and authorization for the subsidy

         Ministry of Agriculture, Forestry and Fisheries
         Agriculture and Livestock Industries Corporation.

5.Legislation under which it is granted

         Sugar Price Adjustment Law
         Agriculture and Livestock Industries Corporation Law

6.       Form of the subsidy / To whom and how the subsidy is provided

         The Government provides payments for sugar made of beet and cane originating in specified
         areas through the Agriculture and Livestock Industries Corporation, based on the applications
         from sugar producers located in those areas.

7.       Amount of the subsidy

         FY 2001 ¥ 12,915 million
         FY 2002 ¥ 11,615 million

8.       Duration of the subsidy and / or any other time limits attached to it

         Duration of the subsidy is not clearly specified, since the subsidy is determined and provided
         based on a fiscal year.


9.       Statistical data
                                                                                      (unit: thousand tons)
       Item        Fiscal Year       Production        Consumption               Import            Export
      Sugar           2000               842               2,413                 1,607                3
                      2001               823               2,339                 1,572                2
                      2002               901               2,433                 1,511                2

79.      Measures for Milk and Dairy Products

1.       Title of the subsidy programme

         Measures for Milk and Dairy Products
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2.    Period covered by the notification

      Fiscal year 2002 (April 2002-March 2003)§

3.    Policy objective and / or purpose of the subsidy

      The purposes of the programme are to promote sound development of dairy farming and
      related industries and to contribute to improvement of nation's dietary life, through stabilizing
      prices of milk and dairy products.

4.    Background and authorization for the subsidy

      Ministry of Agriculture, Forestry and Fisheries

5.    Legislation under which it is granted

      Livestock Products Prices Stabilization Law
      Manufacturing Milk Producer Compensation Temporary Law

6.    Form of the subsidy / To whom and how the subsidy is provided

      In order to maintain production of milk for manufacturing, whose price condition is inferior to
      that of drinking milk, the Government provides producers with a certain amount of subsidy
      for milk for manufacturing up to the quantity limit.
      In order to promote supply of the manufacturing milk for cheese by productive farmers, the
      Government provides a certain amount of premium for producers. The Government also
      provides a certain amount of premium for manufacturing milk producers for cream,
      concentrated milk and skimmed concentrated milk to promote demand and production of
      fresh liquid milk products which are unlikely to compete with imported products.

7.    Amount of the subsidy

      FY 2001 ¥ 36,008million
      FY 2002 ¥ 53,621 million

8.    Duration of the subsidy and / or any other time -limits attached to it

      Duration of the subsidy is not clearly specified, since the subsidy is determined and provided
      based on a fiscal year.
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9.           Statistical data
                                                                            (unit: thousand tons)
             Item               Fiscal Year   Production   Consumption   Import           Export
     Fresh                         2000         8,414         8,414        0                 0
     Milk                          2001         8,312         8,312        0                 0
                                   2002         8,380         8,380        0                 0
     Butter and                    2000          80            83          0                 0
     butter oil                    2001          83            91          0                 0
                                   2002          80            91          7                 0
     Skimmed milk                  2000          185          193         21                 0
     Powder                        2001          178          174         14                 0
                                   2002          179          176          3                 0
     Sweetened                     2000           5            6           0                 0
     condensed                     2001           6            6           0                 0
     skimmed milk                  2002           5            7           1                 0
     Sweetened                     2000          34            33          1                 0
     condensed                     2001          34            34          1                 0
     milk                          2002          34            35          1                 0
                                   2000          34           243         209                0
     Cheese                        2001          34           240         206                0
                                   2002          36           232         196                0
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80.   Measures for Bovine Meat and Pigmeat

1.    Title of the subsidy programme

      Measures for Bovine Meat and Pigmeat

1.    Period covered by the notification

      Fiscal year 2002(April 2002-March 2003)

3.    Policy objective and / or purpose of the subsidy

      The purpose of the programme is to ensure stable supply of bovine meat and pigmeat, and
      stable development of cattle and pig farm management.

4     Background and authorization for the subsidy

      Ministry of Agriculture, Forestry and Fisheries
      Agriculture and Livestock Industries Corporation

5.    Legislation under which it is granted

      Livestock Products Price Stabilization Law
      Special Measures Law on Beef Calves Production Stabilization

6.    Form of the subsidy / To whom and how the subsidy is provided

      The Agriculture and Livestock Industries Corporation contributes to stabilizing the price of
      bovine meat and pigmeat.
      In case wholesale prices fall below the Standard Stabilization price, the Corporation takes
      measures to stabilize prices of bovine meat and pigmeat by withdrawing domestic bovine
      meat and domestic pigmeat from the markets.
      In case wholesale prices exceed the Upper Stabilization price, the Corporation takes measures
      to stabilize prices of bovine meat and pigmeat by increasing sales of domestic bovine meat
      and domestic pigmeat.
      When the calf price falls below the guaranteed base price, the Government provides calf
      producers with a compensatory payment per head, and ensures stable production of calves.
      The Government provides beef cattle producers with a subsidy per head, in order to prevent
      worsening their return and stagnating domestic bovine meat production.

7.    Amount of the subsidy

      FY 2001 ¥ 128,620 million
      FY 2002 ¥ 147,359 million

8.    Duration of the subsidy and / or any other time -limits attached to it

      Duration of the subsidy is not clearly specified, since the subsidy is determined and provided
      based on a fiscal year.
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9.        Statistical data

                                                                                 unit: thousand tons)
        Item        Fiscal Year      Production        Consumption        Import              Export
     Bovine            2000              364                 1,087         738                   0
     Meat              2001              329                  913          608                   0
                       2002              364                 933           534                   0
                    2000              879                1,515             651                   0
     Pigmeat        2001              862                1,549             706                   0
                    2002              872                1,622             748                   0
         Note: The amounts are converted to those of cut meat.

81.       Measures for Eggs

1.        Title of the subsidy programme

          Measures for Eggs

2.        Period covered by the notification

          Fiscal year 2001 (April 2002-March 2003)

3.        Policy objective and / or purpose of the subsidy

          The purpose of the programme is to contribute to developing a sound management of poultry
          farms, through planned production and stabilizing egg prices.

4.        Background and authorization for the subsidy

          Ministry of Agriculture, Forestry and Fisheries
          Egg Price Stabilizing Fund

5.        Legislation under which it is granted

          None (Assistance by budget)

6.        Form of the subsidy / To whom and how the subsidy is provided

          Revenue for compensation in the Egg Price Stabilizing Fund (EPSF) consists of:
          (1)    that paid by producers and producer organizations who make compensation contracts
                 with the EPSF; and
          (2)    a government subsidy.
          When the average transaction price falls below the standard price, the EPSF provides a
          compensatory payment for producers. Producers are paid 90 per cent of the difference
          between the two prices.

7.        Amount of the subsidy

          FY 2001 \ 1,502 million
          FY 2002 \ 1,453 million
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8.          Duration of the subsidy and / or any other time limits attached to it

            Duration of the subsidy is not clearly specified, since the subsidy is determined and provided
            based on a fiscal year.

9.          Statistical data

                                                                                           (unit: thousand tons)
        Item          Fiscal Year       Production        Consumption               Import              Export
                         2000              2,535               2,656                 121                   0
     Eggs              2001             2,519              2,634                114                        0
                       2002             2,529              2,649                120                        0
            Note: The amounts in import and export are converted to those of shell eggs.

82.         Measures for Vegetable

1.          Title of the subsidy programme

            Measures for Vegetable

2.          Period covered by the notification

            Fiscal year 2002(April 2002-March 2003)

3.          Policy objective and / or purpose of the subsidy

            The purpose of the programme is to contribute to a sound development of vegetable farming
            and a stable life with respect to consumption, through stabilizing production of major
            vegetables.

4.          Background and authorization for the subsidy

            Ministry of Agriculture, Forestry and Fisheries
            Vegetable Supply Stabilization Fund

5.          Legislation under which it is granted

            Vegetable Production and Marketing Stabilization Law

6.          Form of the subsidy / To whom and how the subsidy is provided

            The Vegetable Supply Stabilization Fund is financed through a contribution from the
            registered marketing associations and a subsidy from the Government. When the market
            prices fall below the guaranteed base prices, the Fund provides a compensatory payment for
            producers through the registered marketing associations.

7.          Amount of the subsidy

            FY 2001 ¥ 9,330 million
            FY 2002 ¥ 20,522 million
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8.        Duration of the subsidy and / or any other time limits attached to it

          Duration of the subsidy is not clearly specified, since the subsidy is determined and provided
          based on a fiscal year.

9.        Statistical data

                                                                                       (unit: thousand tons)
        Item        Fiscal Year       Production        Consumption               Import            Export
                       2000             13,670               16,670               3,002                2
     Vegetable         2001             13,572               16,574               3,004                2
                       2002             13,269               15,921               2,657                5

83.       Measures for Fruits

1.        Title of the subsidy programme

          Measures for Fruits

2.        Period covered by the notification

          Fiscal year 2002 (April 2002-March 2003)

3.        Policy objective and / or purpose of the subsidy

          The purpose of the programme is to contribute to a stable development of fruits agriculture,
          through stabilizing management of fruit farms within production adjustment measures, and
          through stabilizing transaction of fruits for processing .

4.        Background and authorization for the subsidy

          Ministry of Agriculture, Forestry and Fisheries
          Japan Fruit Foundation

5.        Legislation under which it is granted

          Special Measure Law on Fruit Growing Industry Promotion

6.        Form of the subsidy / To whom and how the subsidy is provided

          The Government provides a certain amount of payments for the fruit-growing farmers who
          adjust their fruit production and shipment, or who sell fruits for processing. Payment is made
          through the Japan Fruit Foundation when the price of designated fruits falls below the
          predetermined standard price.

7.        Amount of the subsidy

          FY 2001 ¥ 1,200 million
          FY 2002 ¥ 1,200 million
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8.         Duration of the subsidy and / or any other time limits attached to it

           Duration of the subsidy is not clearly specified, since the subsidy is determined and provided
           based on a fiscal year.

9.         Statistical data

                                                                              (unit: thousand tons)
        Item         Fiscal Year       Production        Consumption               Import             Export
                        2000              3,847               8,691                4,843               68
      Fruits          2001             4,126                9,246              5,151                   64
                      2002             3,893                8,780              4,862                   27
           Note: The amounts include those of fruits for processing converted to fresh fruits.

84.        Measures for Cocoons

1.         Title of the subsidy programme

           Measures for Cocoons

2.         Period covered by the notification

           Fiscal year 2002 (April 2002-March 2003)

3.         Policy objective and / or purpose of the subsidy

           The purpose of the programme is to contribute to a stable management of sericultural farms
           and filature industry through providing incentive subsidies. This programme aims to facilitate
           the production of high quality cocoons to ensure the income of sericultural farmers.

4.         Background and authorization for the subsidy

           Ministry of Agriculture, Forestry and Fisheries
           Agriculture and Livestock Industries Corporation

5.         Legislation under which it is granted

           Agriculture and Livestock Industries Corporation Law

6.         Form of the subsidy / To whom and how the subsidy is provided

           The Agriculture and Livestock Industries Corporation provides incentive subsidies which
           depend on the quality of cocoons to ZEN-NOH (National Federation of Agricultural Co-
           operative Association) etc.

7.         Amount of the subsidy

           FY 2001 ¥1,431 million
           FY 2002 ¥ 1,395 million
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8.        Duration of the subsidy and / or any other time limits attached to it

          Duration of the subsidy is not clearly specified, since the subsidy is determined and provided
          based on a fiscal year.

9.        Statistical data

                                                                                         (unit: tons)
        Item        Fiscal Year       Production        Consumption               Import                Export
                     2000              498                1,154                    364                   82
     Cocoons         2001              412                 939                     404                   59
                     2002              352                 809                     390                    5
          Note: The amounts are converted to those of dried cocoons.

85.       Farmer's Pension Fund Subsidy

1.        Title of the subsidy programme

          Farmer's Pension Fund Subsidy

2.        Period covered by the notification

          Fiscal year 2002 (April 2002-March 2003)

3.        Policy objective and / or purpose of the subsidy

          This programme covers part of expenses of pension for farmers who have retired from the
          farm management totally and permanently.

4.        Background and authorization for the subsidy

          Ministry of Agriculture, Forestry and Fisheries
          Ministry of Health, Labour and Welfare

5.        Legislation under which it is granted

          Farmers Pension Fund Law

6.        Form of the subsidy / To whom and how the subsidy is provided

          Pension is provided for farmers who have paid the premium and have retired from the farm
          management totally and permanently.

7.        Amount of the subsidy

          FY 2001 ¥ 97,567 million
          FY 2002 ¥ 162,713 million
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8.    Duration of the subsidy and / or any other time limits attached to it

      Duration of the subsidy is not clearly specified, since the subsidy is determined and provided
      based on a fiscal year.

9.    Statistical data

      NA

86.   Farming Modernization Fund Interest Subsidy

1.    Title of the subsidy programme

      Farming Modernization Fund Interest Subsidy

2.    Period covered by the notification

      Fiscal year 2002 (April 2002-March 2003)

3.    Policy objective and / or purpose of the subsidy

      The purpose of the programme is to contribute to the introduction of advanced agricultural
      management for improvement of agricultural structure.

4.    Background and authorization for the subsidy

      Ministry of Agriculture, Forestry and Fisheries

5.    Legislation under which it is granted

      Agricultural Modernization Fund Law

6.    Form of the subsidy / To whom and how the subsidy is provided

      In order to contribute to facilitate farmers to make investments for introducing more advanced
      agricultural management, the prefectural governments provide interest subsidy to finance
      organizations including agricultural co-operatives and the Government provides part of
      necessary expenses to the prefectural governments.

7.    Amount of the subsidy

      FY 2001 ¥ 15,344 million
      FY 2002 ¥ 9,737 million

8.    Duration of the subsidy and / or any other time limits attached to it

      Duration of the subsidy is not clearly specified, since the subsidy is determined and provided
      based on a fiscal year.

9.    Statistical data

      NA
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87.   Agriculture, Forestry and Fisheries Finance Corporation Subsidy

1.    Title of the subsidy programme

      Agriculture, Forestry and Fisheries Finance Corporation Subsidy

2.    Period covered by the notification

      Fiscal year 2002 (April 2002-March 2003)

3.    Policy objective and / or purpose of the subsidy

      The purpose of the programme is to contribute to improvement of agricultural structure.

4.    Background and authorization for the subsidy

      Ministry of Agriculture, Forestry and Fisheries

5.    Legislation under which it is granted

      Agriculture Forestry and Fisheries Finance Corporation Law

6.    Form of the subsidy / To whom and how the subsidy is provided

      This subsidy is provided to the Agriculture, Forestry and Fisheries Financial Corporation,
      which furnishes farmers with a long term loan at preferred rate in order to improve
      agricultural structure including land improvement, acquisition of farm land and agricultural
      mechanization.

7.    Amount of the subsidy

      FY 2001 ¥15,437 million
      FY 2002 ¥ 9,850 million

8.    Duration of the subsidy and / or any other time limits attached to it

      Duration of the subsidy is not clearly specified, since the subsidy is determined and provided
      based on a fiscal year.

9.    Statistical data

      NA

88.   Fisheries Modernization Fund Interest Subsidy

1.    Title of the subsidy programme

      Fisheries Modernization Fund Interest Subsidy

2.    Period covered by the notification

      Fiscal year 2003 (April 2003-March 2004)
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3.    Policy objective and/or purpose of the subsidy

      The purpose of the programme is to contribute to the introduction of advanced fisheries'
      management for structural adjustment of small- or medium-size fisheries.

4.    Background and authority for the subsidy

      Ministry of Agriculture, Forestry and Fisheries

5.    Legislation under which it is granted

      Fisheries Modernization Fund Law

6.    Form of the subsidy/To whom and how the subsidy is provided

      In order to contribute to the introduction of advanced fisheries' management for structural
      adjustment of small- or medium-size fisheries, the prefectural governments provide interest
      subsidy to finance organizations including fishery cooperatives, and the Government provides
      part of necessary expenses born by the prefectural governments.

7.    Amount of the subsidy

      FY 2002 ¥ 1,301 million
      FY 2003 ¥ 1,046 million

8.    Duration of the subsidy and/or any other time-limits attached to it

      Duration of the subsidy is not clearly specified, since the subsidy is determined and provided
      based on a fiscal year.

9.    Statistical data

      NA

89.   Fund for the Projects Implemented by Regional Governments for Promoting
      Sustainable Fisheries

1.    Title of the subsidy programme

      Fund for the Projects Implemented by Regional Governments for Promoting Sustainable
      Fisheries

2.    Period covered by the notification

      Fiscal year 2003 (April 2003-March 2004)

3.    Policy objective and / or purpose of the subsidy

      The purpose of the subsidy is to implement comprehensive programmes for the promotion of
      sustainable fisheries, and thereby to ensure stable, safe and efficient supply of food to people.
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4.    Background and authorization for the subsidy

      Ministry of Agriculture, Forestry and Fisheries

5.    Legislation under which it is granted

      None(Assistance by budget)

6.    Form of the subsidy / To whom and how the subsidy is provided

      The Government funds comprehensive programmes implemented by prefectural
      governments. Subsidies are provided for, promotion of stock enhancement and sustainable
      aquaculture, restructure of fishing communities entities, conservation of coastal environment
      and recruitment of fishermen for stable supply of food. Subsidies for promotion of
      distribution, processing and consumption of fishery products are implemented for safe and
      efficient supply of food.

7.    Amount of the subsidy

      FY 2002 ¥3,907 million
      FY 2003 ¥ 3,329 million

8.    Duration of the subsidy and / or any other time-limits attached to it

      Duration of the subsidy is determined and provided based on every fiscal year.

9.    Statistical data

      NA

90.   Fund for the Activities Implemented by Non-governmental Organizations for Promoting
      Sustainable Fisheries

1.    Title of the subsidy programme

      Fund for the Activities Implemented by Non-governmental Organizations for Promoting
      Sustainable Fisheries

2.    Period covered by the notification

      Fiscal year 2003 (April 2003-March 2004)

3.    Policy objective and / or purpose of the subsidy

      The purpose of the subsidy is to implement comprehensive programmes for the promotion of
      sustainable fisheries, and thereby to ensure stable, safe and efficient supply of food to people.

4.    Background and authorization for the subsidy

      Ministry of Agriculture, Forestry and Fisheries
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5.    Legislation under which it is granted

      None(Assistance by budget)

6.    Form of the subsidy / To whom and how the subsidy is provided

      The Government funds various comprehensive programmes implemented by non-
      governmental organizations. Subsidies are provided for sustainable management of fishery
      resources, promotion of stock enhancement and aquaculture, restructure of fishing entities,
      conservation of coastal environment and recruitment of fishermen for stable supply of food.
      Subsidies for promotion of distribution, processing and consumption of fishery products are
      implemented for safe and efficient supply of food.

7.    Amount of the subsidy

      FY 2002 ¥ 3,076 million
      FY 2003 ¥ 1,955 million

8.    Duration of the subsidy and / or any other time-limits attached to it

      Duration of the subsidy is determined and provided based on every fiscal year.

9.    Statistical data

      NA

91.   Wood Industry Upgrading Funds

1.    Title of the subsidy programme

      Wood Industry Upgrading Funds

2.    Period covered by the notification

      Fiscal year 2002 (April 2002-March 2003)

3.    Policy objective and / or purpose of the subsidy

      The purpose of the programme is to contribute to rationalization and improvement of wood
      production and distribution.

4.    Background and authorization for the subsidy

      Hokkaido prefecture

5.    Legislation under which it is granted

      None (Assistance by budget)
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6.    Form of the subsidy / To whom and how the subsidy is provided

      This programme provides loans at preferred rates for forestry co-operatives, forest owners,
      timber loggers, wood products manufacturers and wood products wholesalers.

7.    Budget

      FY 2001 ¥ 3,100 million
      FY 2002 ¥ 2,800 million

8.    Duration of the subsidy and / or any other time limits attached to it

      Duration of the subsidy is not clearly specified, since the subsidy is determined and provided
      based on a fiscal year.

9.    Statistical data

      NA

IV.   TRANSPORT

92.   Grant for Promotion of Research and Development of Future Ships

1.    Title of the subsidy programme

      Grant for Promotion of Research and Development of Future Ships

2.    Period covered by the notification

      April 2003 – March 2004

3.    Policy objective and/or purpose of the subsidy.

      To promote research and development of future ships.

4.    Background and authority for the subsidy

      Ministry of Land, Infrastructure and Transport.

5.    Legislation under which it is granted

      The Law for Japan Railway Construction, Transport and Technology Agency.

6.    Form of the subsidy (i.e., grant, loan, tax concession, etc.).

      Grant.
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7.    To whom and how the subsidy is provided

      The grant is provided to research and development on higher technology for ships within a
      budget.

8.    Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
      budgeted for that subsidy

             2001                   2002                    2003
          ¥290 million           ¥160 million            ¥91 million


9.    Duration of the subsidy and/or any other time limits attached to it

      There is no time limit attached it.

10.   Statistical data permitting an assessment of the trade effects of the subsidy

      The know-how from the R&D projects has not produced commercial products. Thus no trade
      effects of this grant have appeared as yet.


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