EOB Meeting Notes

Thursday July 1, 2004, EBC Office

8:30-10:30 a.m.

Attendees: R. Collasse, A. Murray, R. Mason, L. Lachaussee, F. Ziprani (substitute), P. Elbers, A. Zimmermann, G. Schlosser, C. Bystedt (substitute), H. Porat
Apologies: M. Otter, D. Delgorge, E. Ullner, M. Fasce, T. Henriksen
Substitutes: 　 C. Bystedt (for E. Ullner); F. Ziprani (for M. Fasce)
Absent: T. Varlid

ACTIVITIES REPORT FROM THE CHAIRMAN:

1. EU-Japan BDRT (June 20-21)
Japanese participation was very strong this year, largely due to the influence of Japanese Co-chair, Yotaro Kobayashi of Fuji Xerox. There were two new working groups: Life Sciences & Biotechnology and Sustainable Development, both of which produced good papers. All papers and presentations are available on the EJBDRT website - http://www.eujapan.com/roundtable/workinggroup.htm
The main issues presented in the Working Party 1 paper (presented by R. Collasse of EBC and K.Honda of Japan Tobacco and prepared by EBC and JT, respectively) included telecom-related issues, food additives, privatization of postal services, and extension of exclusivity (IPR) of pharmaceuticals. WP1 also reiterated last year's request for a mutual framework agreement on two-way FDI. The EJBDRT papers and recommendations were submitted by the RT co-chairs in person to PM Koizumi and President Prodi in an hour-long meeting that included substantial discussion. In the EU-Japan Summit that followed the EJBJRT, the requested framework agreement on FDI was signed.
(Relevant materials distributed in the meeting)

2. Nikkei Seminar (June 21)
The seminar was successful overall with an initial audience of about 500 people, but disappointing for the EBC as the only profile gained was the EBC's name in the program. Due to the participation of President Prodi and Commissioner Lamy, a large portion of the audience departed when the Prodi and Lamy speeches concluded. The Nikkei was difficult to work with and would not agree to the participation of any local European company personnel, nor even the EBC Chairman. (Program distributed in the meeting)

3. Meeting with Commissioner Lamy (June 22)
A one-hour meeting to brief Commissioner Lamy was held at the EC Delegation with the following EBC personnel nominated by the EC Delegation:
R. Collasse (EBC Chairman)
R. Murray (EBC Automobile Committee Chairman)
S. Ginoux (EBC Aeronautics, Space & Defence Committee (CASD) Chairman)
R. Terrones (Representative from Airbus and former CASD Chairman)
P. Stalman (EBC Tax Committee Chairman)
D. Delgorge (EBC Food Committee Chairman)
L. Auguste (Member of EBC Environment Technology Committee, Veolia Water Japan)
G. Illichmann (EBC Airline Committee Chairman)
T. Gilberston (EBC Telecommunication Carriers Committee Chairman)
L. Levant (EBC Retail Committee Chairman)

4. Visit from Japan Investment Council Secretariat (JIC) and METI
A group of representatives from the Japan Investment Council secretariat, METI and MOF visited R. Collasse and A. Murray to explain the Ministry of Finance's response to R. Collasse's presentation at the JIC in March.. The prospects for tax deferral on M&As occurring via direct stock swaps is not good with the MOF even considering abolishing the practice that is currently possible for purely domestic Japanese company stock swaps. The JIC and METI appeared to be urging the EBC to promote tax deferral associated with the triangular stock swap, which they believe might be accepted by the MOF. The ACCJ position is more hard-line.
(Relevant materials distributed in the meeting)

5. Meeting with Kanto Local Finance Bureau (June 23)
R. Collasse was asked as the EBC Chairman, to attend this meeting. Also present were N. Benes and G. Fukushima (ACCJ), a Financial Times representative, and representatives from the Star Bank, a Chinese Bank and JTB. The purpose was to hear from industry groups about taxation issues. A positive aspect of the meeting was the news that the Ministry of Finance might start utilizing the "no-action" letter system.
(Papers in Japanese are available at the EBC Office)

6. Government Investment Group Lunch Meeting (June 25)
The purpose of the June bimonthly meeting was for the EBC and the EC Delegation to report to the other participants (Japanese government ministries, Keidanren, Development Bank of Japan) on the EJBDRT and EU-Japan Summit, respectively.

REPORT FROM THE EXECUTIVE DIRECTOR:

1. Update on project for Eurochambres
Contracts have been signed, and an appropriately qualified expert has been contracted to work on the Environment technology report. Others have been identified to work on the other three reports. This should provide about 1.2 million yen for the EBC

2. Update on start of EWI's use of EBC office space (from June 1)
EWI has begun using the EBC's facilities harmoniously. This will raise 1.5-1.75 million yen for the EBC.

3. Visit from Tokyo-based Osaka Officials - A. Murray to join Advisory Committee (May 28)
Osaka City is redeveloping part of its city area and is seeking close links with the EBC for networking purposes

4. Report on first of the EBC-MCE seminars (June 17)
Was successful and professionally conducted. There were only 5 participants. This raised 40,000 yen for the EBC, but was not labour-efficient considering the small profit level. Hopefully, more people will register for the October and November events - the De Bono 6 Hats program might not have been particularly attractive.

5. Request to "rent" EBC meeting room - appropriate price?
A non-member company has requested the use of the EBC meeting room on September 24. It was decided that an appropriate fee would be 40,000 yen for a full-day and 25,000 yen for a half day plus 5,000 yen for self-service refreshments (as per usual EBC style)

6. Request for A. Murray to join discussion panel of OECD/MOFA seminar
The OECD visits the EBC annually for a day to receive a briefing on the business environment. A follow-up to this year's briefing earlier in the year was a request to take part in an OECD-MOFA panel discussion. .

7. White paper planning:

• Outreach for sponsorship: An outreach will be made as usual - the large list of company names authenticates the report. Will be done early next week (week of 7/5)

• Date of completion: November 1

• Government doorknock: Early planning was for November, but will be changed to the new year

• Event: Under consideration. The same type of event has been conducted for the past 3 years, hence a change is worth considering. The EC's regulatory reform dialogue will take place on November 10/11 so an event would take place at that time if it is decided to run one.

FUNDING UPDATE FROM THE EXECUTIVE DIRECTOR:

1. Committee member fee payment update
On track. BCCJ and GCCJ members invoiced directly have all paid with a minimum of follow-up.

2. Revised prediction of 2004 revenues and expenditures
Revised based on the two contracts signed with EWI (office space) and Eurochambres (market report updates) (Distributed in the meeting)

EBC COMMITTEE ITEMS:

1. EBC Telecommunications Committee position paper
This was produced by Vodafone and edited by C. Sedgman and the Committee. Distributed by the EBC at the EJBDRT with Working party 1 documents.

2. Comments from committee liaison EOBs

ORGANISATIONAL ITEMS:

1. Reminder about next steps on constitution
Chambers have been asked to provide written comments if they have any to the EBC office by July 31. The taskforce will meet to finalise the draft in early August and the new version will be circulated to the Council members at least 2 weeks prior to the next Council meeting (September 9). The revised Committee Rules draft (currently being reworded by M. Hancock) will also be distributed at that time. The objectives are to: 1) discuss the committee rules document, and 2) hopefully take a vote on the council draft at the next council meeting.

2. Stakeholder funding taskforce - first meeting?
The first 2 meeting dates were set at August 6 and 26 at 6:30 p.m. in the EBC office. The EOB decided that Council members will be advised and requested to: 1) provide a representative to join the taskforce if desired, 2) to provide ideas for the first meeting, and 3) prepare chamber details to submit at the first meeting (numbers of chamber members in each category, membership fees, annual budget and so on). The goal is to prepare a transparent formula and to reach a final agreement through mutual consent.

3. FDI Taskforce - Members? First meeting?
To be considered again in the fall.

DAIMLERCHRYSLER CUP REPORT:

• Update from C. Bystedt
  Now fully subscribed, but registrations are still being accepted on a waiting list basis as some cancellations are expected. More sponsors are needed to match the North American sponsors.

ANY OTHER BUSINESS: 　

• Any Other Business