EBC Board of Governors' Meeting

Friday, February 03, 2006; Europa House 6F, 08:30 a.m.-10:30 a.m.

Attendees:  R. Collasse, M.Reiterer, A. Murray, J.Edberg, P.van Oppen, C.Goulios, M. Arnold, J-F Minier, J-P Oulevey, A. Lanigan, V Trelut, L. Dubois, M. Schaedlich, T. Varlid, M.Makinen, H. Tempel, D. Buckley, R. Kracklauer, L Zukauskaite, P. Mattioli, R. Mazzucco, B. Winderickx, D. Delgorge, W. Wagner, C. Halling, A. Ponzetta H.De Mestier, M. Lachaussee, R. Mazzucco
Regrets: A. Pockett, G. Schlosser, R. Mason, P. Baron, M. Hoffmann, S. Kamijo C. Vellekoop

1. REPORT FROM THE EC DELEGATION:
Comments by Michael Reiterer, Deputy Head of Delegation

• High-level EU-Japan Consultations were held on January 24. The Director General of External Relations visited Japan for these talks. While the focus was on politics, there was also a strong economic component. Regulatory reform issues discussed included civil aviation, leather footwear, article 821, and investment issues. WTO issues following the HongKong meeting also were discussed - EU wants to avoid to focus only on agriculture, underlining the need to make progress in NAMA (non-agricultural market access), services and rules. Japan remains reluctant to do engage more vigorously and proactively in the process.
• There will be a high-level EU-Japan meeting on the environment in April. Austrian presidency is preparing this meeting. A main theme will be to build a bridge between environment and science & technology and to counter the perception that environment and industry are antagonists. Efforts will be made so that EBC members can meet with Director General Peter Carl.
• The Austrian Presidency plans a S&T conference in April, in conjunction with the EU-Japan Summit. This half a day conference will focus on the ways stakeholders (companies, universities, public interest group, regulators, etc.)in Europe and in Japan organise themselves and interact with each other through e.g. clusters in Japan or "European Technology Platforms" in Europe (see Internet sites hereunder). The conference will focus on key research and technological innovation sectors such as (i) hygrogen and fuel cell technology or (ii) nanoelectronics. The European hydrogen and fuel cell technology platform http://europa.eu.int/comm/research/energy/nn/nn_rt/nn_rt_hlg/article_1261_en.htm
  European technology Platform for nanoelectronics http://cordis.europa.eu.int/ist/eniac/home.html
• Delegation (Philippe de Taxis du Poet) has approached to raise awareness of the need for improving the conditions for research and innovation (e.g. improved efficiency of intellectual property protection, availability of human resources, research and innovation clusters, improving university-industry partnerships...) are as important for the business environment in Japan as they are in Europe. The European companies present in Japan (in particular the ones having research activities but also the ones which don't have any now but could develop some in the future) could consider these research-related issues in order to identify specific barriers or difficulties and propose ways to improve the research-related business environment in Japan and therefore their competitiveness. Suggest that these are taken up further.
• The commissioner for competition, Neelie Kroes, will visit Japan on March 7 to join the EU-Japan Competition Symposium and for high-level EU-Japan government talks on competition.
• EU-Japan Business Dialogue Round Table will be held in July. M.Reiterer encourages companies with expected CEO visits to Japan this year to try and schedule the visits to coincide with the RT.

2. REPORT FROM THE CHAIRMAN:

1. Lunch with Government Investment Luncheon Group - February 3 This is the next in the series of lunches with Japanese government officials and other organisations to discuss measures to promote investment. This lunch will be hosted by the Keidanren.
2. EJBDRT - update on dates The original dates set were July 9 and 10, but these are likely to change to 13 and 14. If it is held on the July 9/10 dates, R. Collasse will not be able to attend due to conflicting Chanel dates. The 2006 RT will be held in Tokyo under Co-Chairman Baron Jacobs for the first time. Yonemura San (sherpa to Co-Chair Kobayashi) visited R. Collasse on January 31 to express the Japanese side's desire to include a Financial Services working party from this year, an opinion held also by the EBC. Yonemura San will meet with baron Jacobs next week in Brussels. R. Collasse obtained a high-level participant (CFO) from AXA last year and AXA is willing to co-chair the new working party. The EBC remains a driving force of the RT due to the comprehensive content of Working Party 1 (business and investment environment) and has some success in obtaining EU participants..
3. Other items
   1. An article was distributed - a good article about the EBC appearing in the French Counsellors' journal
   2. Relations with Japanese officials:
      • R. Collasse was visited by Ms. Ichikawa of MOFA to explain Mr.Ishikawa's reaction to the EBC's 2005 white paper. R. Collasse explained to her that 2 major developments set 2005 apart from previous years - the introduction of article 821 and the delay in introducing as well as the likely restrictions being imposed on the use of the triangular merger scheme.
      • In contrast, R. Collasse met with Mr. Yasutaka Nagatomi (Director-General, Regulatory Reform）of the Cabinet Office to present the EBC White Paper (13 December, 2005), who was highly supportive of our activities and position..
   3. R. Collasse met recently with Mr. Yabunaka (Chairman of the FDI Committee of the Keizaidoyukai). They discussed the possibility of holding a joint Keizaidoyukai-EBC seminar on measures to increase FDI into Japan. Ms. Clara Gaymard, who is the Invest in France Ambassador, will visit Japan in April, which might be a suitable time to hold some type of joint activity. If this project moves forward, it will be important to enlist speakers from other European countries.
   4. R. Collasse intends to maintain a close relationship with the ACCJ and to further develop relations with Mr. Nagatani, Mr. Ishikawa, Professor Shimada and the Japan Investment Council

3. REPORT FROM THE EXECUTIVE DIRECTOR: 

1. Office activities 
   • A visit from Ms. Marianne Gumaelius, Deputy Head of the EC's Unit for IPR, Procurement, New Technologies and Trade Relations. She expressed great support of the EBC white paper and A. Murray noted that large sections of her copy had been highlighted with a yellow marker, indicating that she had studied it closely. (1/27) 
   • A joint EBC/ACCJ/ANZCCJ taskforce meeting was organized by the EBC and was held in the offices of J-F Minier. (1/30) 
   • A. Murray and J. Edberg had lunch with Mr. S. Kamijo (EBC Medical Equipment Chairman) to discuss future management of the committee (see details below under 3B) (1/31) 
   • A. Murray met with Ms. Lina Zukauskaite, Counsellor of the Lithuanian Embassy. She has requested observer status in the BoG and A. Murray briefed her on the EBC and the role of the BoG etc. She will attend the BoG meeting on February 3 (2/1) 
2. Agreements 
   Agreements with European Wood, ETPA (Executive Training Programme Association) and Eurochambres have been made and contracts are being drafted. 
3. Crisis Management/Consulting - formation of advisory group to set conditions, etc.
    As discussed at the December BoG meeting, the EBC could provide a fee-charging crisis management consulting service to companies that are not yet established in Japan or to companies with an issue that is not of concern to other members of their EBC committee and is not, therefore, taken up by the commmittee. The secretariat will seek advice from key EBC members on charges, terms & conditions, etc. in order to provide such a service. 
4. Eurochambres-funded visit to Brussels (for ETP promotion training)
   A. Murray will visit Brussels in late February to attend an ETP promotion training seminar to be organised by Eurochambres. Eurochambres will provide the air fare and cover some of the accommodation cost. A. Murray will extend the trip to include visits to the European Commission, Eucomed, the EU-Japan for Industrial Cooperation (the RT Secretariat) and Baron Jacobs (RT Co-Chair).

4. FUNDING & FUND-RAISING: 

1. Statement of Cash balances and of cash receipts and disbursements - 2005 (to be audited in March) Distributed in the meeting 
2. Additional funding lines (other than stakeholder and committee member fees): 
   Confirmed: 
   1. European Wood: 
      In 2006, identical to 2005 (and the latter half of 2004), the EBC will receive funds for subletting a section of the office space, and providing facilities, equipment, storage and utilities 
   2. Ultracall donations 
      Global Tank (Ultracall) is continuing to provide a proportion of its earnings from EBC members as a donation to the EBC. This was in excess of 360,000 yen in 2005 and Global Tank hopes to exceed this substantially in 2006 by encouraging more EBC members to be Ultracall customers 
   3. Golf (DaimlerChrysler cup) registration fees 
      This amounted to about 200,000 yen in 2005 and can be expected again in 2006 
   4. ETPA office hosting 
      From February 2006, EBC will receive funds for subletting a section of the office space, and providing facilities, equipment, storage and utilities. EBC will also receive funds to pay the salary of an appropriate staff member (currently C. Marquant) for 2 days per week. 
   5. Eurochambres for ETP promotion 
      EBC has been subcontracted by Eurochambres to promote the ETP programme in Japan. In return for this service, the EBC will receive funds plus additional funds to cover the cost of an event and other expenses 
   6. Eucomed for visit organisation and liaison services 
      In 2006, the EBC will provide Eucomed (European association of medical equipment industries) with visit/meeting organization services (for at least 4 visits) and proactive liaison with the EBC Medical Equipment Committee in return for a contracted fee. 

Under discussion - To be confirmed: 

1. Eurochambres for market report updates 
   The EBC has agreed to undertake the updating of 4 market research reports under a subcontract from Eurochambres. 
2. Medical Equipment committee for "secretariat" hosting 
   The EBC Medical Equipment Committee is considering employing a person to manage the committee's activities and may rent EBC office space, facilities, equipment, storage and utilities for a fee. This may not take place until later in the year or subsequently as the committee has not yet taken a firm decision on this matter. If it goes ahead, the EBC will try to assist in identifying an appropriate person.

5. REPORT FROM THE POLICY DIRECTOR: 

A. Committee items 

• J-F Minier on Article 821: Various key politicians were visited by the joint taskforce in late 2005 with the result that we were advised that the MOJ and LDP leadership would not oppose an amendment in the spring session of the Diet. However, with the latest Livedoor problem, the LDP leadership is again under pressure and they now are suggesting amending it in the fall session (which would be after implementation of the article in May). The joint taskforce meeting on January 30 concluded that the best solution might be to lobby to have implementation of article 821 delayed until 2007 (to coincide with implementation of the triangular merger scheme). Visits to the MOJ and politicians will take place next week and the situation is in a state of flux. Unlike the Ministry of Foreign Affairs, both the MOJ and the policians are acknowledging that the futaiketsugi, while helpful, is not legally binding and they are committed to taking some action. It is important for companies to fill in the EBC survey. 
• J. Edberg reported that the EBC Retail, Wholesale and Distribution Committee has submitted public comments to the proposed changes of the City Planning law making it considerably more difficult to build large-scale retailing facilities in Japan. The submission was preceded and followed up with visits to both METI and MLIT. 
• The EBC Tax Committee has been contributing actively in the debate on the tax reform proposal submitted by the LDP in mid December. The Committee also visited MOF to express EBC views on changes in tax rules for "semi-permanent residents". The Tax Committee is planning to hold a seminar on the new corporation law jointly with the EBC Legal Services Committee 
• On the construction side, the EBC visited the Housing Industry, Ceramics & Construction Materials Division of METI to discuss a new voluntary labeling system for insulation propensities of windows to be introduced this year. The EBC Construction Committee is working together with European Wood, as well as Industries in Europe to provide the information requested. Next step is an information meeting with METI and foreign manufacturers. 

B. Cross-cutting items 
J. Edberg reported that most efforts on the part of the EBC secretariat have been focused on trying to get article 821 of the Corporations law revised before implementation in May this year. An EBC taskforce consisting of members from EBC, ACCJ and ANZCCJ have conducted a number of meetings with the Ministry of Justice as well as with Members of Parliament. Good news before Christmas was followed by less good news in January.

6. ORGANISATIONAL ITEMS: 

1. Replacement of one of the three committee chairmen representatives in the BoG 
   Hans Tempel, Chairman of the EBC Automobile Committee, had expressed interest in standing as a Committee Chairmen Representative in the Board of Governors. His name was submitted to the committee chairmen and his nomination was adopted without dissent. 
2. Treasurer Recommendation from EBC Chairman 
   The EBC Chairman has nominated Erik Ullner (EOB member for Finland with an investment banking background) to serve as EBC Treasurer and E. Ullner has accepted.

DAIMLERCHRYSLER CUP REPORT: 
Year 2006 planning 
The tentative date is September 29, 2006. The event will be held at the same club, but perhaps on a different course within the club.

ANY OTHER BUSINESS: ……… 
Any Other Business 
None