EBC Board of Governors' Meeting

Thursday, September 08, 2005; Europa House, 6th Floor, 08:30 a.m. - 10:30 a.m.

Attendees: R. Collasse, M. Reiterer, P. Van Den Heuvel, A. Murray, J. Edberg, C. Marquant, H. De Mestier, P. Baron, S. Ginoux, C. Vellecoop, M. Lachaussee, J. Bertrand, A. Pockett, D. Delgorge, R. Kracklauer, A. Ponzetta, R. Mason, C. Halling, W. Wagner, M. Makinen, D. Buckley,
S. Saugnes
Regrets: M. Hoffmann, V. Heiberg, J-F Minier, A. Zimmermann, J-P Oulevey, T. Varlid, A. Borelli,
M. Romano, H. Meuller

1. REPORT FROM THE EC DELEGATION:

1. Comments from Michael Reiterer, Minister, Delegation of the EC in Japan
   1. Michael Reiterer introduced Mr. Peter Van Den Heuvel, successor of Philippe Duponteil in the EC Delegation.
   2. The EU-India summit led to India signing on to the Galileo system. So far, Japan has not agreed to switch to the European system from the American system, but the EC will continue to encourage Japanese participation.
   3. Preparations for the annual Regulatory Reform Dialogue have started. There have been some changes in the negotiators: Mr. Kovanda will replace Mr. Valenzuela as the chief negotiator in the EC team and Mr. Ishikawa will replace Mr. Sase on the Japanese side.
   4. An EU-Japan Industrial Policy Dialogue meeting will take place in October.

2. REPORT FROM THE CHAIRMAN:

1. Report on joint EBC-ACCJ press conference (June 29)
   Around 40 people attended the EBC-ACCJ press conference on corporate governance. Several influential media, including Reuters, were among the participants. There were about 20 articles that appeared in various media (distributed in the meeting). According to the ACCJ, this was the most substantial response to a press conference they have experienced.
2. Report on EU-Japan Business Dialogue Roundtable (July 7-8)
   • This was the last year for Viscount Etienne Davignon to co-chair the EJBDRT. He will be replaced by Baron George Jacobs, Chairman of the Board of UCB and former Chairman of UNICE.
   • This year, the Working Party 1 report included a section on the difficult environment for Airbus in Japan. Although there was a move by the Japanese side to have this section removed, it was retained with only a minor change.
   • At the request of R. Collasse, Mr. Duverne, Chief Financial Officer of AXA joined this year's meeting and is willing to co-chair the Financial Working party for Europe if this working party is established formally next year.
   • Viscount Davignon made an excellent presentation about the EU constitution.
   • As usual, attendance of the Japanese participants was good. The METI Vice-Minister and the MOFA Parliamentary Secretary were present.
   • Mr. Christian Gregoire, Senior Vice-President of Alcatel Asia-Pacific, praised the Working Party 1 presentation.
3. Japan Investment Committee: M&A and Healthcare Subcommittee meetings (September 7)
   At the suggestion of the EBC, the Japan Investment Council has established a sub-committee to work on the M&A infrastructure and another to work on healthcare sector reform. R. Collasse is participating in both sub-committees and will be joined in the former by John Versantvoort and in the latter by S. Kamijo (Medical Equipment Committee Chairman) and I. Ohhashi (EFPIA Japan Chairman). The first meetings of both sub-committees will be held sequentially throughout the afternoon of September 7.
4. Meeting with Ambassador Zepter (September 22)
   This is one of the regularly scheduled EBC-EC Delegation Ambassador briefing meetings. R. Collasse will report on the EU-Japan Business Dialogue Roundtable, the EBC white paper launch and other EBC activities such as the joint EBC-ACCJ press conference, LDP presentation and so on. R. Collasse will suggest that the EBC Chairman be invited to make an annual EBC briefing to the EU Ambassadors at one of their regularly scheduled meetings.
5. Government Investment Group Lunch (September 22)
   R. Collasse reminded the meeting that the Government Investment Group Lunch is an informal event at which key working-level contacts from JETRO, the Keidanren, Soumusho, METI, MOFA and the Development Bank of Japan discuss recommendations about ways to promote FDI and improve the FDI infrastructure (i.e. the regulatory framework).

3. REPORT FROM THE EXECUTIVE DIRECTOR:

1. Report on White paper fund-raising and production
   A. Murray expressed disappointment that white paper fund-raising via sponsorships and advance orders is currently about 1.4 million yen below the target of 5.5 million yen (which is the level attained every year for the past 5 years). This situation exists even though 4 outreaches to members have been made. The deficit is equivalent to the amount needed to subsidize the white paper launch scheduled for November 24. Another outreach was recommended and it was confirmed that the white paper launch should be held. R. Collasse indicated that his company would cover the costs if the outstanding amount is not obtained .
2. Current status of 821 issue
   The ACCJ produced a revised version of the 821 position paper and a suggested amendment in July and also pressed ahead with some lobbying visits. However, lobbying on 821 is currently on hold until after the election, passage of the postal privatization bill and formation of a new cabinet and various Diet committees. As it is important to prepare for the next phase of lobbying, it was suggested that a committee be formed to monitor the issue and take action as appropriate. The committee could include Jean-Francois Minier, Laurent Dubois, Cees Vellecoop, and John Versanvoort if they are willing to join.
3. Meetings and office visits
   1. Mr. Graf Lambsdoff, member of the EU Parliament, visited the EBC with representatives of the German Embassy to receive a briefing about Article 821 (6/29)
   2. The Belgian and Luxemburg Chamber of Commerce used the EBC premises for a meeting (6/30)
   3. Mr. Chu, Business Development Manager from British Telecom Hong Kong - planning to expand operations again in Japan．Interested in the 821 issue and in EBC activities (7/01)
   4. Mr. Seiji Kamijo, EBC Medical Equipment Committee Chairman and A. Murray met with Mr. Luciano Cattani, Board Member of Eucomed (European Federation of Medical Industries and Associations) of Eucomed for a breakfast discussion. Eucomed requested the EBC to co-sponsor their position paper on the medical device pricing issue. The committee will review the paper with an intention to support the paper pending the result of the review. (7/05)
   5. Mr. Yoshiya of the Cabinet Office, visited the EBC to discuss organization of the JIC M&A and Healthcare sub-committees (7/7)
   6. Mr. Komoda of the Osaka Regional Office in Tokyo visited to promote Osaka City's upcoming conference on locating in Osaka in the context of corporate disaster preparedness. (7/8)
   7. Michael Gropp of Eucomed visited to follow up the above-mentioned breakfast meeting and to discuss the joint paper on medical device pricing. (7/13)
   8. Mr. Asano and two others from the secretariat of the Keizai Doyukai visited to discuss possible collaboration of their FDI committee with our FDI Taskforce. They are planning a seminar to assist prefectures to promote FDI and requested our assistance in broadcasting the event. A joint lunch later in the year for informal discussions on promoting FDI and considering joint activities was suggested by the EBC and was enthusiastically received (8/16)
   9. Meeting at Philips with A. Murray and Mr. Yoshiya of the Cabinet Office to brief Mr. Kamijo (EBC Medical Equipment Chairman) on the Japan Investment Council as he will join R. Collasse in the JIC Healthcare Sector Sub-Committee. (8/23)
   10. The BLCCJ held another board meeting in the meeting room. This is excellent utilization of the EBC meeting room by a stakeholder. The Swiss Chamber also is using the room. (8/25)
   11. Mr. Masaki Noguchi, the newly appointed Director General of EFPIA visited the EBC to receive a briefing about the EBC. He was asked to consider the possibility of EFPIA Japan also joining R.Collasse in the JIC Healthcare Sector Sub-Committee. (8/25)
   12. Meeting at Novartis Japan with A. Murray and Mr. Yoshiya of the Cabinet Office to brief Mr. Ohhashi (EFPIA Japan Chairman) about the JIC Healthcare Sector Sub-Committee, which he has agreed to join with the EBC. (9/2)
   13. Another meeting with Michael Gropp of Eucomed to discuss the position paper on medical device pricing (9/2)
   14. Meeting with Peter Van Den Heuvel, the replacement for Philippe Duponteil at the Delegation of the EC to Japan. (9/5)
   15. Meeting with the Osaka Chamber of Commerce & Industry about providing assistance in promoting their events (9/9)

4. REPORT FROM THE POLICY DIRECTOR:

1. Committee items
   1. The Telecom Carriers Committee has been extremely productive over the summer, producing position papers on the spectrum allocation policy, the guidelines to universal fund policy and also a general paper on reform in the telecom sector.
   2. The Food Committee is working to influence local authorities to streamline their current procedures of random control of products in market circulation. There are no stringent guidelines on how local authorities (public health centers) should exercise their duties under paragraph 24 of the Food Sanitation Law as food inspectors of products in market circulation. The Food Committee is concerned about confusion in the market place caused by these inspectors informing retailers directly about violations and is arguing for a system in which inspecting bodies are obliged to inform the manufacturer or importer first.
   3. The Retail Committee has made some progress on the tableware issue. Two visits to the Ministry of Health Labour and Welfare led to clarification of the current rules. A cabinet order released November 2004 extended the validity of import approvals from one to three years and made application for once-approved products unnecessary, provided that the materials and production processes are unchanged.
2. General items, including white paper
   The production of the white paper is at an intensive phase of writing and also is now widely circulating among members.

5. ORGANIZATIONAL ITEMS: 　　

1. Result of stakeholder vote on funding formula
   A table showing the result of voting on the stakeholder funding formula was distributed. All votes submitted were in support of the formula; only two BoG members did not respond (both were BoG members that are not substantially affected by the funding formula)

6. FUNDING ITEMS: 　　　　　

1. Results of data entry in funding formula for 2006
   Tables were distributed in the meeting showing the: 1) breakdown of fees based on the predicted 2004 chamber membership number and fee data supplied to the Funding Taskforce, 2) breakdown of fees based on the actual 2004 data without adjustment to the agreed total of 24,116,000 yen; and 3) breakdown of fees based on the actual 2004 data with adjustment to the agreed total.
2. 2006 Draft Budget
   The draft budget based on the stakeholder fees discussed under 6A was distributed. Stakeholders were requested to submit written approval/disapproval to the EBC Secretariat by October 31.

7. DAIMLERCHRYSLER CUP REPORT:

1. Comments on current situation (Date: September 30)
   The Chrysler Cup is fully booked and there will be more than 72 players in the European team. No champagne has been donated as yet this year and some cash sponsors are still needed.
   There will be 10 million yen in prizes this year. The rules have been changed this year and the results are based more on handicaps.

8. ANY OTHER BUSINESS:

1. EBC Chairman election process
   The election process for the new chairman of the EBC as specified in the new constitution was introduced by Richard Collasse. An election committee was formed and consists of Andre Zimmermann (Chairman), Phil Gibb and Michel Lachaussee. An outreach to EBC members will be prepared by the committee and sent out by around mid September. The result of the election should be known by December 13th.