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The United States and Japan are very firm allies On the security side the United States and Japan are linked by a mutual security treaty Despite all the attention in the press and negative attitudes toward Japan in Washington particularly among government agencies that have to face the frustrations of Japans competitiveness many American businessmen are doing very good business in Japan The figures demonstrate this Japan is Americas most important overseas trading partner its most important agricultural consumer and now a major investor in the United States State 4 Our interests require that we not just look at Japan but also at the economic vitality of all East Asia Its economic growth and stability is based on free market principles and participation in the international market The US government is trying to institutionalize and strengthen is dialogue with the Japanese government and to enhance the dialogue between the two private sectors There are many institutions involved in the governmental side of the dialogue and just about every aspect of the economic relationship is covered A key problem today is the false thinking that the Japanese market is a closed one Many Americans seem to feel that if the Japanese market is not like the US market then it must be unfair The Japanese have clearly perceived their national interest in trade terms and have organized themselves and disciplined themselves to do something about itState 7 There are strengths and weaknesses in both the American and the Japanese social system The Emperor of Japan descends from an Imperial House that has been more or less in direct succession for 1500 years When the Portuguese the Dutch the Spanish and the British went out around the world creating colonies Japan was hardly touched We need to keep in mind also some simple facts Japan is the most densely populated country in the world It has the most educated population known to human history The
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