EOB Meeting Notes

Tuesday, September 7, 2004, EBC Office

8:30-10:30 a.m.

Expected Attendees: R. Collasse, A. Murray, C. Sedgman, M. Lachaussee, M. Fasce, A. Zimmermann, T. Henriksen, H. Porat, P. Gibb (New member for BCCJ), T. Varlid, G. Schlosser
Apologies: M. Otter, D. Delgorge, E. Ullner, P. Elbers

1. REPORT FROM THE EBC CHAIRMAN:

1. Government Investment Discussion Group lunch
This will be held on Friday September 10. R. Collasse will raise the issue of tax deferral on stock swaps in M&As with a focus on triangular mergers.

2. Hyogo Prefecture presentation
R. Collasse made a presentation on the EBC and the promotion of FDI to a group of around 150 Japanese businessmen in Kobe on September 1. He also met with Governor Ido. The event was organized by Hyogo Prefecture.

3. Comite Colbert
Comite Colbert is an organization of French prestige brands. They have requested EBC support for their issue relating to tariffs and quotas on imported leather goods, especially shoes. The EBC will prepare a letter to METI in support of the Comite Colbert. R. Collasse suggests that the EBC asks Comite Colbert to join the EBC as a "supporter" similar to EFPIA, which pays 500,000 yen annually - in return, the EFPIA logo is on the EBC's homepage as a special sponsor and an EFPIA entry is included in the white paper (conforming to the paper's layout requirements). EFPIA issues are also included in the EJBDRT paper.

4. Meeting on triangular mergers with ACCJ vice-chair
A dinner meeting will be held at the home of R. Collasse on Thursday, September 9 with Professor Shimada, President, Vice-President and FDI Committee Chair (N. Benes) of the ACCJ, President of JETRO, Keizai Doyukai, etc. to discuss future common approach to lobbying for tax deferral on stock swaps with a shift of focus to triangular mergers (in contrast to AC's current hardline approach) with a view to achieving success on the issue.

5. December 15 EBC party at new Chanel premises
R. Collasse will invite Chamber Presidents, EOB members, Committee Chairmen, Ambassadors and key EBC Japanese contacts to an end of year evening party to be held this year on December 15 at the new Chanel premises in the Ginza. An invitation letter will be distributed in due course. Spouses will be welcome.

6. Other items - nil

2. REPORT FROM THE EXECUTIVE DIRECTOR:

1. White paper update
Sponsorship of the white paper has reached the target enabling us to produce the white paper and subsidise a launch event (provided costs are contained to reasonable levels). The paper is under production and the English version will be sent out for translation and to the printer on October 4. The translated version will be sent to the printer towards the end of October. The launch event is scheduled for early November to coincide with the European Commission's submission of their regulatory reform proposals to the Japanese Government. Mr. Valenzuela of the EC will participate in the event as in the past. November 11 was the date mentioned in this meeting, but this was changed subsequently to November 10 at the request of the Delegation as meetings now scheduled with the Japanese government preclude their participation in the event on the 11th.

2. OECD visit
A fact-finding team from the OECD paid a second visit to the EBC this year on September 6. They spend about 2 hours meeting with A. Murray and C. Sedgman. Please refer to the material distributed in the meeting

3. Comments on Market research report updates for Eurochambres
The environmental expert assigned to complete the environment market study update (under contract with Eurochambres) proved to be disappointing. Only a very small portion of the material was updated and some of the update was incorrect. Moreover, there was little attention paid to deadlines. Accordingly, all other work in the secretariat was suspended for 2 weeks and the work was completed in-house, largely by A. Murray with assistance from C. Bedin (see point 8 below), Y. Hijikuro and C. Sedgman. The final update appears to have been considered satisfactory and accepted by Eurochambres.

4. Visits from MOFA (new Economic Policy Division)
MOFA's second international economic affairs division has been reorganized to form an economic policy division with a focus on promoting inward FDI. Two visits of various relevant personnel have been received at the EBC secretariat.

5. Cooperation with Hyogo Prefecture
Hyogo Prefecture will sponsor the white paper as a special sponsor. They are also considering placing a banner on the website.

6. MCE seminars (June 17, Oct. 7/8, Nov. 9/10)
Please refer to the distributed material. This event was suggested by the Human Resources Committee and approved by the EOB earlier in the year but has not attracted great interest. It will provide a modest amount of income. The first in the series provided an income of 40,000 yen. Not recommended for next year.

7. Human resources seminars with Proconsulting (Sep. 13/14)
Please refer to the distributed material. This event was suggested by the Human Resources Committee and approved by the EOB (via e-mail) in July. Attendance is limited and will provide a modest income of around 120,000 yen.

8. Intern
Ms. Camille Bedin worked in the EBC as an intern in August. She worked on updating the filing system, producing a letter and an article in support of the Comite Colbert's current issue, and assisting with the environment report update.

9. Extension of sub-letting arrangement with EWI
There is a possibility that the office subletting arrangement with EWI may continue through 2005. This will be confirmed at the end of the year.

3. REPORT FROM POLICY DIRECTOR:

1. Report on committee news from policy director

• Animal health: Position paper on teratogenicity (July 30, 2004))

• Animal health: Public comments on bacterial resistance and risk assessment (Aug. 4, 2004)

• Telecommunication carriers: Public comments on interconnection charges (Aug. 27, 2004)

• Telecommunication carriers: MPHPT briefing on interconnection and spectrum usage charges (Aug. 4, 2004))

• Patents, trade marks and licenses: Patent Office briefing on trade mark and design laws (Aug. 5, 2004)

• Human resources: Position paper on refunds to pension contributions (to be released shortly)

• Food: Position paper on chocolate tariffs (to be released shortly)

• Financial services: Questionnaire developed in cooperation with IBA and ACCJ surveying regulatory practice in Japan (to be released shortly)

• Tax: Position paper on upcoming commercial code revisions and need for relevant changes to corporate tax law (pending)

• Insurance: Public comment on reserving for variable annuities (to be released shortly)

• Insurance: Letter to PM on privatization of post offices (to be released shortly)

• Materials: Committee chairman Mr. Arnaud Tissidre has left Japan. New chairman pending.

2. Report on cross-sector policy items

• JFTC fight with Keidanren over revisions to the AMA

• Post office privatization

• Pension reform

• EU-Japan Regulatory Reform Dialogue

• Tariffs/quotas on imported shoes (request from Comite Colbert)

4. CONSTITUTION:

1. Comments/explanation on latest draft
Please refer to the distributed material. Michael Hancock will discuss the most recent changes at the September 9 Council meeting. The most notable changes relate to new payment default clauses. The council will be asked for a decision on when to vote.

5. TASKFORCE UPDATE:

1. Current taskforce members
List distributed in the meeting

2. Spreadsheet request
Pieter Stalman (Taskforce member and Tax Committee Chair) has produced a spreadsheet to facilitate the review. This has been sent to the chambers. Chambers have been requested to return the completed spreadsheet before the next taskforce meeting, which will be held on September 15.

3. Next meeting - September 15

6. ORGANISATIONAL MATTERS: 　

1. EBC elections
R. Collasse is willing to stand as chairman for next year to oversee the introduction of the new constitution if passed. The council will be asked to indicate in writing whether they wish to have a formal reaffirmation of R. Collasse as Chair for 2005 or to have a formal election for the 2005-2007.

7.DAIMLERCHRYSLER CUP: 　

1. Places still available; Sponsorship still welcome
As there are cancellations, it is still possible to register as places occasionally become available. Sponsorship is still welcome.

8. OTHER BUSINESS: 　

1. Other business
The embassies of the new EU members represented in Japan (none of which have chambers of commerce or business organizations) will be approached to see if they will join the EBC council in 2005 as observers (free of charge for 1 year, then 80,000 yen per year) or as regular fee-paying members with voting rights (300,000 yen as per EI, Portugal, Spain, and Greece), as agreed in a previous Council meeting. Enterprise Estonia has been an observer for part of this year.