EBC Meeting Minutes

EOB Meeting Notes

Tuesday, June 28, 2005; EBC Office, 08:30 a.m. - 10:30 a.m.

      

Attendees: R. Collasse, A. Murray, J. Edberg, Y.Oishi (for D.Delgorge), P. Gibb, T. Henriksen
M. Lachaussee, M. Otter, T. Varlid, C. Bystedt (for E. Ullner)
Regrets: D. Delgorge, E. Ullner, A. Zimmermann, G. Schlosser, D. Delgorge, P. Stalman

1. REPORT FROM THE CHAIRMAN:

  1. EJBDRT
    This year, the EBC was required to provide an evaluation of each category of the 2004 follow-up report from the Japanese government. The Japanese side requested that we soften our evaluation, but we did not agree to do so. The Airbus issue is included in the Working party 1 report this year. AXA will join the Round table this year now that financial sector companies can participate.
    A near-final draft of the WP1 paper was distributed in the meeting.

  2. Report on LDP presentation on corporate governance (May 26) and press articles
    The presentation went well and it seemed to be well-received by the politicians present. Around 200 people altogether were present.
    The presentation and press articles were distributed in the meeting.

  3. Joint ACCJ-EBC press conference on Corporate Governance (June 29)
    R. Collasse of the EBC and D. Howard of the ACCJ will have a joint press conference on corporate governance on June 29.
    The flier, R. Collasse's presentation, the EBC position paper on FDI, the ACCJ Viewpoint on corporate governance and the draft joint press release were distributed in the meeting.

  4. Others
    1) A regular briefing meeting with Ambassador Zepter is scheduled for June 29
    2) A. Murray has been decorated by the French Government in the National Merit Order, Knighthood (Chevalier dans l'Ordre National du Merite) for promoting relations between Europe and Japan

2. REPORT FROM THE EXECUTIVE DIRECTOR:

  1. Article 821 report
    The Judicial Committee of the House of Councillors passed the new corporate law with Article 821 on June 28. The EBC together with other foreign groups had undertaken vigorous discussions on 821 with the Japanese authorities. As a result, we were able to achieve a delay in the imminent passage of the law through the upper house, thus providing time to negotiate ways to mitigate the effects of the article. In consequence, the article was passed with a politically binding rider/resolution added to the bill providing that existing foreign companies will not be affected and that new companies in the future can use the same corporate structure as existing foreign companies. Moreover, in the last sentence of the rider, there is wording that provides a foothold for discussion and a political foundation for future revision of the article. An extensive parliamentary question and answer session last week (using a scripted Q&A based on discussions with the joint foreign group) provided a political record of clarification. These were the minimum measures that the joint group was prepared to accept as an interim solution. The law had already passed the lower house, and the political leadership was not willing to amend and send the law back to the lower house as they did not want the session delayed further by reopening discussion on the corporate law in the lower house, thereby further delaying discussions on the post office privatization. Thanks to the rider and the Q&A record, we are confident that the relevant companies can operate without the need to reincorporate. However, following the conclusion of the current diet session, which is now focusing on the post office privatization, the EBC will work to have article 821 amended as soon as possible to provide the proper clarity that one should expect in the statutes in order to provide legal certainty.
    The following documents were distributed in the meeting:
    1. Article 821 with explanation 2. EBC position statement 3. Joint EBC-ACCJ-ANZCCJ position statement 4. Joint EBC-ACCJ-ANZCCJ press release - English 5. GATS analysis 6. Joint EBC-ACCJ-ANZCCJ press release- Japanese 3. EBC press release 7. Rider for Article 821

  2. White paper 2005: (i) Response to sponsorship outreach, (ii.) Launch date (November 24)
    The response to the sponsorship outreach has been slower than usual. Several reminders will be needed. The launch date is now confirmed to be November 24 to coincide with the visit of the EC's Regulatory Reform Dialogue team, who will join our event.

  3. Visits to EBC Office and other contacts

    1. Ministry of Justice visited to ask the EBC to send a letter to various ministers requesting that all of Japan's laws be translated into English in a harmonized manner - they will send the contact details of the people to receive letters. (5/30)

    2. Courtesy Visit from Mr. Okada of the Foreign Dealers Committee of the Japanese Securities Dealers Association (5/31)

    3. Lunch meeting with Senator Tamura about Article 821 (5/31)

    4. Office meeting room used for the BLCCJ board meeting (6/3)

    5. Visit from an Osaka group discussing a seminar to be held in Tokyo to promote Osaka (6/7)

    6. Visit from a Shinjuku ward group to discuss an international event to be held in Shinjuku in December (6/10)

    7. A. Murray met with the EU commercial counselors to brief them on Article 821 developments

    8. A. Murray met with P. Vandoren, Director Trade Relations, EC, to brief him on Article 821 developments (6/20)

    9. Office meeting room used for the SCCJ board meeting (6/21)

    10. Bimonthly government investment discussion group lunch (6/28)

    11. Meeting with EU politician, Mr. Graf Lambsdorff, is scheduled to brief him on Article 821 developments (6/29)

    12. Joint EBC-ACCJ press conference scheduled for 6/30 - materials distributed

    13. Meeting scheduled with representative of the Madrid Chamber of Commerce (6/30)

    14. Meeting scheduled with Hong Kong-based regulatory compliance representative of British Telecom - developing business in Japan again (7/01)

    15. Meeting scheduled with visiting VP of Eramet - nickel tariff issue (7/06)

  4. Others
    None

3. REPORT FROM THE POLICY DIRECTOR:

  1. Committees report
    Retail Committee: Discussions with METI have continued following submission of a policy paper on tableware. Fundamental problem is that Japan will not accept a universal certification system.
    Telecom Carriers Committee: A chapter has been included in the WP1 paper of the RT and a separate background position paper on spectrum allocation has also been prepared for distribution at the RT and in Japan.
    Materials Committee: Japan is the only country among the OECD nations in which a tariff on processed nickel remains. The committee has had three meetings this year already on this issue.
    Food Committee: A new problem is that the Tokyo metropolitan government is now insisting on random food safety tests in supermarkets and is publishing any unsatisfactory findings. This has affected some companies already.

  2. Cross-cutting issues report
    No special items other than Article 821 and preparation for the Roundtable discussed earlier in the meeting

4. ORGANISATIONAL ITEMS:

  1. Funding Proposal - Update
    The initial powerpoint slides setting out the funding formula will be distributed together with the voting form and the sample table of calculated values. Voting forms are to be returned to the EBC by the end of August and 2004 membership figures (full members/Other members) to be submitted to the EBC secretariat in August.

6. DAIMLERCHRYSLER CUP REPORT:

  1. Progress report (Clas Bystedt)
    Already 52 players have signed up. All European ambassadors will be invited as guests this year. Sponsorships have been received, but there is a need for cash donations in order to pay for costs.

7. ANY OTHER BUSINESS:

Any Other Business
None