Japan's International Relations

B 52862 Japan's International Relations Politics, economics and security Glenn D. Hook, Julie Gilson, Christopher W. Hughes and Hugo Dobson London and New York

Contents LIST OF ILLUSTRATIONS GLOSSARY ABBREVIATIONS A NOTE ON THE TEXT ACKNOWLEDGEMENTS PREFACE XIX xx i xxv i XXX i xxxiii xxx iv MAPS Map 1 Japan's administrative districts, US bases in Japan and basic statistics on Japan Map 2 Japan and East Asia xxxvii xxxviii PART I JAPAN'S INTERNATIONAL RELATIONS: WHAT, WHY AND HOW 1 1 The significance of Japan's international relations 3 1.1 Debates on Japan's international relations 4 1.1.i Metaphors of change 4 1.1.ii Metaphors of challenge 4 1.1.iii Metaphors of contradiction 7 1.2 Why Japan matters: economics, politics and security 8 1.2.i Economics 8 1.2.ii Politics 10 1.2.iii Security 12 1.2.iv A tri-dimensional perspective 13 1.3 Why Japan matters: regional and global perspectives 13 1.3.i United States 13 1.3.ii East Asia 14

1.3.iii Europe 16 1.3.iv Global institutions 1 7 1.3.v Balancing regional and global perspectives 18 1.4 Paradigmatic paradoxes? 18 1.4.i Japan's role: what, why and how 18 1.4.ii Japan's international relations as normal 20 1.5 Summary 21 Explaining Japan's international relations 23 2.1 Methodology 24 2.2 Historical overview: from the Chinese world order to the post-cold War period 25 2.2.i Chinese world order 25 2.2.ti Imperial world order 27 2.2.iii Cold War order 29 2.2.iv Post-Cold War period 32 2.2.v Dominant historical patterns of Japan's international relations 36 2.3 Determinants of Japan's international relations: structure, agency and norms 37 2.3.i Theoretical approach 37 2.3.ii International structures 39 2.3.iii Domestic agency 40 2.3.iv Norms 65 2.4 Reactivity and proactivity 69 2.4.i Reactivity and immobilism 69 2.4.ii Proactivity 70 2.4.iii Normal reactivity and proactivity of the Japanese state 71 2.5 Normal modes of instrumentalization 71 2.5.i Crisis and long-term policy-making 71 2.5.N Formal, informal and proxy channels 72 2.5.iii Sources of quiet diplomacy 74 2.5.iv Cultural determinism? 74 2.5.v Unilateral, bilateral and multilateral levels 75 2.6 Instrumentalizing policy 75 2.6.i Primacy of economic power 76 2.7 Summary 78

PART II JAPAN-UNITED STATES RELATIONS 79 3 Introduction 81 3.1 Changing places? 82 3.2 Approach 82 3.3 Historical overview 83 3.3.i Changing international structures 83 3.3.ii Changing domestic order 84 3.3.iii Changing domestic society 86 3.4 Summary 88 4 Japan-United States political relations 89 4.1 Overview 90 4.2 Changes in the structure of the international system 91 4.2.i Normalization of relations with the Union of Soviet Socialist Republics 92 4.2.Ii Japan's response to the Vietnam War 93 4.2.iii Normalization of relations with China 94 4.2.iv Opportunities of multipolarity 95 4.2.v Opportunities and constraints of renewed bipolarity 96 4.2.vi Opportunities and constraints of the post-cold War period 98 4.3 Domestic society 101 4.3.i Americanization of the academic community 101 4.3.ii Public opinion 101 4.4 Summary 102 5 Japan-United States economic relations 105 5.1 Overview 106 5.2 Trade relations 106 5.2.i Trade conflicts 109 5.3 Investment relations 113 5.3.i Manufacturing investment 114 5.3.ii Finance 115 5.4 Japan, the United States and regional projects 118 5.4.i North American Free Trade Agreement 118 5.4.ii Asia Pacific Economic Cooperation 119 5.5 Clash of developmental and liberal economic norms 120 5.6 Summary 122

6 Japan-United States security relations 123 6.1 Overview 124 6.2 Interpreting the security treaty 124 6.3 Cold War period 126 6.3.i International setting and domestic agency 126 6.3.ii Balancing internal and external pressures 127 6.4 Post-Cold War period 136 6.4.i Implications of the Cold War's ending 136 6.4.ii 'Reaffirmation' or 'redefinition' of the security treaty? 139 6.4.iii Revised Guidelines for United States-Japan Defence Cooperation 140 6.4.iv 'Situations in areas surrounding Japan' 141 6.4.v Theatre Missile Defence 142 6.4.vi United States bases in mainland Japan 143 6.4.vii United States bases in Okinawa 143 6.5 Summary 145 7 Conclusion 147 7.1 The changing nature of Japan-United States relations 148 7.2 Continuing strength of bilateralism 148 7.3 Salience of other norms 149 7.4 Dominant pattern of Japan-United States relations 149 PART III JAPAN-EAST ASIA RELATIONS 151 8 Introduction 153 8.1 Japan and the rejoining and remaking of East Asia: Association of Southeast Asian Nations + 3 154 8.2 Approach 155 8.3 Historical overview 1945-56: the origins of structural barriers to Japan-East Asia interaction 156 8.3.i Legacy of colonialism 156 8.3.ii National division 157 8.3.iii Cold War bipolarity 158 8.3.iv Fragmentation of the East Asian regional political economy 159 8.3.v Japan's isolation from East Asia 160 8.4 Summary 161

9 Japan-East Asia political relations 163 9.1 Overview 164 9.2 Japan and China 164 9.2.i Japan's approach towards China: structure, agency and norms 164 9-2.it Sino-Japanese relations and normalization in the first Cold War period 165 9.2.iii Sino-Japanese relations in the 1980s 168 9.2.iv Tiananmen Square incident 169 9.2.v Sino-Japanese political relations in the post-cold War period 170 9.3 Japan and the Korean Peninsula 1 73 9.3.i Japan's approach towards North and South Korea: structure, agency and norms 1 73 9.3.ii Japan-South Korea relations in the Cold War period 1 74 9.3.iii Japan-North Korea relations in the Cold War period 1 76 9.3.iv Japan-South Korea relations in the post-cold War period 178 9.3.v Japan-North Korea relations in the post-cold War period 180 9.4 Japan and Southeast Asia 183 9.4.i Japan's approach towards Southeast Asia: structure, agency and norms 183 9.4.ii Japan and Southeast Asia in the Cold War period 184 9.4.iii Japan and the Vietnam War 185 9.4.iv Japan and the emergence of the Association of Southeast Asian Nations 186 9.4.v Japan-ASEAN relations in the post-cold War period 188 9.4.vi East Asian Economic Caucus 190 9.5 Summary 191 10 Japan-East Asia economic relations 193 10.1 Overview 194 10.2 Japan's economic re-entry and presence in East Asia 194 10.2.i Official Development Assistance 194 10.2.ii Foreign direct investment 195 10.2.iii Trade 196 10.3 Japan and the economic development of the East Asia region 198 10.3.i Developmental models 198 10.3.ii Propagation of developmental norms 200 10.3.iii Criticisms of the developmental state model 201 10.4 Japan and the East Asian economic crisis 202

10.4.i East Asian financial and economic crises 202 10.4.ii Japan's perceived responsibility for the crises 203 10.4.iii Japan's regional response and the Asian Monetary Fund 204 10.4.iv New Miyazawa Initiative 205 10.5 Summary 206 11 Japan-East Asia security relations 207 11.1 Overview 208 11.2 The pattern of Japan's security policy in East Asia 208 11.2.i Structure, agency and norms in Japan's security role in East Asia 208 11.2.ii Japan's alternative security agenda 209 11.3 Japan and East Asian security in the Cold War period 210 11.3.i Japan and Southeast Asia 210 11.3.ii Korean Peninsula 211 11.3.iii China 212 11.3.iv Japan and multilateral security in East Asia in the Cold War period 214 11.4 Japan and East Asian security in the post-cold War period 215 11.4.i Changes in the post-cold War international structure 215 11.-4.il Complexity of the post-cold War security agenda 215 11.4.iii Japan's bilateral security links with East Asia in the post-cold War period 216 11.4.iv Japan and multilateral security in East Asia in the post-cold War period 21 7 11.4.v United States-Japan alliance and regional security in the post-cold War period 219 11.4.vi Japanese economic power and security policy in the post-cold War period 223 11.5 Summary 224 12 Conclusion 225 12.1 Association of Southeast Asian Nations + 3 revisited 226 12.2 Japan's reconstruction of an East Asia region 226 PART IV JAPAN-EUROPE RELATIONS 229 13 Introduction 231 13.1 Obuchi calls for a new currency era 232

13.2 From early encounters to defeat in World War II 233 13.3 Core states of Europe 235 13.4 Divided continent 236 13.5 European Economic Community 236 13.6 Summary 237 14 Japan-Europe political relations 239 14.1 Overview 240 14.2 Japan and the community of Europe 240 14.2.i Fall of the Berlin Wall 241 14.2.ii Consolidating links with the European Community 241 14.3 Policy-making actors 242 14.3.i Policy-making agents 243 14.3.ii Political parties 244 14.3.iii Business interests 244 14.3.iv Non-governmental organizations 245 14.3.V The European Commission Delegation in Tokyo 245 14.4 Divide and rule? Japan and the European Union member states 246 14.4.i Japan's promotion of shared interests with the European Union 246 14.4.ii Japan's promotion of multilevel engagements with the European Union 247 14.4.iii Standardized approach to the European Union 247 14.5 Japan and peripheral Europe 248 14.6 Expanding dialogue with Europe 249 14.7 Cooperating in regional fora 249 14.7.i Multilateral opportunities 249 14.7.ii Asia-Europe Meeting 250 14.8 Emerging norms: new trilateralism 252 14.8.i Trilateral Commission 252 14.8.ii New trilateralism 253 14.9 Summary 254 15 Japan-Europe economic relations 257 15.1 Overview 258 15.2 Economic relations with the European Union 258 15.2.i Japan as an emerging challenge during the 1970s and 1980s 258

15.2.ii Responding to structural changes 260 15.2.iii Anti-dumping 261 15.2.iv 'Screwdriver'problems 262 15.3 Post-Cold War economic relations 262 15.4 Domestic actors ~ 263 15.4.i Policy-making agents 263 15.4.ii Other policy-making actors 265 15.4.iii Business interests 266 15.5 National differences of perception and reception 267 15.5.i Types of market 267 15.5.ii Reception by host government 268 15.5.iii Links with the European Union 270 15.6 Peripheral Europe 271 15.7 Institutions 273 15.8 Trilateralism 274 15.9 Summary 274 16 Japan-Europe security relations 277 16.1 Overview 278 16.2 Cold War structures 278 16.3 Post-Cold War changes 280 16.4 Facing a converging European security agenda 280 16.4.1 Shared security interests 281 16.4.ii Peacekeeping operations 282 16.5 Bilateral security dialogue 282 16.6 Peripheral Europe 283 16.7 Multilateral cooperation 284 16.7.i North Atlantic Treaty Organization 284 16.7.ii Organization for Security and Cooperation in Europe 284 16.7.iii United Nations 285 16.7-iv G7/8 286 16.7.V ASEAN Regional Forum 287 16.7.vi Korean Peninsula Energy Development Organization 287 16.8 Domestic actors 288 16.8.i Policy-making agents 288 16.8.ii Non-governmental organizations 289 16.9 Changing security norms 290 16.10 Summary 291

17 Conclusion 293 17.1 Trilateral agenda 294 17.2 Balancing relations 294 17.3 Tripolar competition 294 17.4 Triangular unity 295 17.5 Supplemental strategy 296 PART V JAPAN-GLOBAL INSTITUTIONS 297 18 Introduction 299 18.1 Renewed internationalism 300 18.2 From Versailles to the San Francisco peace treaty 302 18.3 Post-war reintegration of Japan 304 18.4 Summary 307 19 Japan-United Nations 309 19.1 Overview 310 19.2 United Nations reform 311 19.2.i United Nations Security Council 311 19-2.ii Japanese initiatives 314 19.3 Representation 316 19.3.i Personnel 316 19-3.it United Nations University 318 19.4 Economics 318 19.4.i Funding 318 19.4.ii Development 321 19.4.iii Environmental issues 322 19.5 Security 323 19.5.i Peacekeeping 323 19.5.M Disarmament 327 19.6 Summary 328 20 Japan-economic institutions 331 20.1 Overview 332 20.2 Historical context 333 20.3 Financial contributions 334 20.4 Japanese representation 335

20.4.i World Bank 335 20.4.ii International Monetary Fund 336 20.4.iii World Trade Organization 337 20.5 Japan as a norm entrepreneur 338 20.6 The East Asian Miracle report 339 20.7 Policy-making process 341 20.7.i Ministry of Finance 341 20.7.ii Other actors 342 20.8 Trade conflict 343 20.9 Summary 346 21 Japan-G7/8 347 21.1 Overview 348 21.2 Economic issues 349 21.2.i Management of the global economy 349 21.2.ii Debt relief 350 21.3 Expanding the G7 351 21.3.i Russian reconstruction 351 21.3.ii FromG7toG8 353 21.4 Japan, East Asia and the G7/8 354 21.4.i Japan as regional leader 354 21.4.ii East Asian participation 355 21.5 Promotion of security 356 21.5.i Traditional security 356 21.5.ii New security challenges 357 21.6 Policy-making process 358 21.6.i Ministry of Foreign Affairs and Ministry of Finance 358 21.6.ii Ministry of International Trade and Industry and Bank of Japan 359 21.6.iii Big business and opposition parties 359 21.6.iv Prime minister 359 21.6.V Domestic issues 360 21.7 Summary 361 22 Conclusion 363 22.1 Assuming global responsibilities 364 22.2 Internationalist future? 365

PART VI JAPAN'S INTERNATIONAL RELATIONS: WHAT NEXT? 367 23 Japan explained 369 23.1 Japan: no longer an enigma 370 23.2 Japan-United States relations 370 23.2.i What? 370 23.2.H Why? 371 23.2.iii How? 372 23.3 Japan-East Asia relations 372 23.3.i What? 372 23.3.ii Why? 373 23.3.iii How? 373 23.4 Japan-Europe relations 374 23.4.i What? 374 23.4.ii Why? 374 23.4.iii How? 374 23.5 Japan-global institutions 375 23.5.i What? 375 23.5.ii Why? 375 23.5.iii How? 376 23.6 Japan: the aikido state 376 23.6.i Crisis and long-term policy-making 377 23.6.ii Formal, informal and proxy channels 378 23.6.iii Bilateral, regional and multilateral levels 379 23.7 Summary 380 24 Japan: the challenge of globalization 383 24.1 Overview 384 24.2 Globalization and the tri-dimensional approach 384 24.2.i Political dimension 384 24.2.ii Economic dimension 385 24.2.iii Security dimension 385 24.3 Globalizing agents, 386 24.3.i Political dimension 386 24.3.ii Economic dimension 386 24.3.iii Security dimension 387 24.4 Globalizing norms 387 24.4.i Political dimension 387 24.4.ii Economic dimension 388

24.4.iii Security dimension 388 24.5 Globalization and quiet diplomacy 388 24.6 Challenges for Japan 390 CHRONOLOGY OF JAPAN AND WORLD AFFAIRS 1933-2002 393 BIBLIOGRAPHY 423 TABLES 441 APPENDICES 0.1 Internet sources 462 1.1 Constitution of Japan - Preamble and Article 9 466 1.2 Post-war prime ministers of Japan 468 1.3 Security Treaty between the United States and Japan 1951 469 1.4 Treaty of Mutual Cooperation and Security between the United States and Japan 1960 471 2.1 Constitution of Japan - Article 66 474 4.1 Bilateral visits between Japan and the United States 475 6.1 Japan-US Joint Declaration on Security 1996 476 9.1 Joint Communique of the Government of Japan and the Government of the People's Republic of China 1972 481 9.2 Treaty of Peace and Friendship between Japan and the People's Republic of China 1978 484 9.3 Japan-China Joint Declaration on Building a Partnership of Friendship and Cooperation 1998 486 9.4 Treaty on Basic Relations between Japan and the Republic of Korea 1965 490 9.5 Japan-Republic of Korea Joint Declaration 1998 504 9.6 Joint Declaration Issued by Korean Workers' Party, Liberal- Democratic Party and Japan Socialist Party 1990 510 11.1 Defence exchanges with East Asia 512 14.1 Joint Declaration on Relations between the EC and Japan 1991 517 21.1 Meetings of heads of state and government of the G7/8 520 INDEX 521