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Appendix A
Chronology of Trade Friction and Scandal in Japanese Construction, 1985–1994




12 April

Official of U.S. Consulate in Osaka asks that U.S. firms be permitted to bid on projects at the Kansai International Airport (KIA)


U.S. government formally requests that American firms be allowed to bid on KIA projects


Ministry of Transport announces that foreign firms will not be disadvantaged in designation decisions concerning bidding on KIA projects


Kansai International Airport Corporation (KIAC) nominates only Japanese firms to bid on a levee for an artificial island at KIA



24 June

Senator Frank Murkowski (R-Alaska) demands that the USTR Clayton Yeutter launch an investigation according to section 301 of the Trade Law

26 July

Commerce Secretary Malcolm Baldridge receives promise from Prime Minister Nakasone to open a seminar for foreign firms to explain bidding procedures for KIA projects

5 September

South Korea's Construction Minister visits Japan to petition for access for Korean firms; President Chun makes similar request at meeting of heads of state held in Seoul on 21 September

8–9 October

KIAC convenes seminar for foreign firms




21 January

Bechtel signs contract to enter joint venture with six Japanese companies to supervise the design phase of the terminal at KIA

18 March

Senator Murkowski introduces proposal to revise Airport Law

30 April

U.S. House of Representatives passes omnibus provision to Trade Law that includes retaliatory measures against Japanese construction firms

1 May

Prime Minister Nakasone promises President Reagan that Japan will eliminate discriminatory practices in its construction market

30 June

U.S. Senate unanimously adopts a bill excluding Japanese firms from federally funded airport projects

25 September

Bechtel granted metropolitan contractors license

29 October

U.S. Senate approves Senator Murkowski's amendment by a 96-1 vote

4 November

Bilateral talks involving business interests on participation in KIA projects

16 November

U.S. points to bid-rigging on public works as a "structural impediment" fair trade

1 December

Senator Murkowski sends letter to USTR Yeutter demanding invocaton of Section 301

4 December

U.S. House of Representatives votes 399-17 to ban Japanese firms from participating in federally funded public works; two weeks later the bill passes the Senate

22 December

Brooks-Murkowski Amendment inserted into annual Expenditure Law



5 January

Effective 30 December 1987, USTR bans Japanese firms from federally funded public works

22 January

Senator Murkowski threatens to seek retaliatory legislation against Japanese firms in private-sector construction

25 January

Representative Pete Stark (D-Calif.) introduces bill that would effectively exclude Japanese firms from private construction projects

17–19 February

High-level bilateral talks on construction end in failure

25 February

Trade Policy Study Group recommends invocation of Section 301

2–8 March

Bilateral talks on construction end without resolution

3 March

Washington, D.C., Transit Authority rejects Kajima Corporation's bid (result of Brooks-Murkowski Amendment); similar action taken against Kajima in Houston on 25 March; low bid by Kumagai Gumi for a public works project in San Francisco rejected on 11 May


22–29 March

Bilateral talks produce Major Projects Agreement (MPA), signed on 25 May

25 March

French design selected for KIA terminal

21 April

Omnibus trade bill passes the House and, on 27 April, the Senate; bill sent to President Reagan on 13 May; vetoed on 24 May

15 August

Flour Daniel granted contractors license

6 September

First meeting of MPA monitoring commission

24 November

Contract for Minato Mirai, one of the special projects set aside in the MPA, granted to a joint venture that includes Schal Associates

8 December

Japan Fair Trade Commission orders payment if fines in Yokosuka Naval Base bid-rigging incident



25 May

Suggestion to undertake talks on "structural impediments"; agreement reached at summit on 14 July

4–5 September

First meeting of Structural Impediments Initiative (SII) talks

29 September

Senator Murkowski sponsors a rider to a bill banning firms involved in the Yokosuka Naval Base bid-rigging incident from participating in U.S. federally funded public works

20 December

Bechtel wins contract for Haneda Airport




Dissolution of the Management Harmony Society


KIAC bypasses AEG Westinghouse for people-mover contract



3 April

U.S. Department of Justice announces possible action against foreign collusion

25 April

Bilateral construction talks; USTR Carla Hills gives 30-day ultimatum under threat of Super 301

2 June

U.S.-Japan Construction Market Agreement signed (expands list of specially designated projects from 17 to 34)



22 January

Los Angeles trolley war

27 August

Kanemaru Shin admits receiving ¥5 billion from Tokyo Sagawa Kyubin and resigns as LDP vice-president




6 March

Kanemaru indicted on charges of tax evasion

20–23 March

Acting upon evidence gathered in the Kanemaru probe, investigators search the offices and homes of 18 major general contractors

30 April

USTR Mickey Kantor threatens to impose sanctions if Japan does not more fully open its construction market to American firms within 60 days


Bilateral talks to review progress on construction-related issues; U.S. demands replacement of the designated bidding system with an open bidding system

29 June

Sendai Mayor Ishii Tooru arrested on charges of receiving ¥100 million in bribes from four general contractors

30 June

Clinton administration formally identifies Japan as a country that discriminates against U.S. construction firms; imposition of sanctions deferred until 1 November 1993

18 July

In general elections, LDP loses its absolute majority in the Lower House

19 July

Sanwa Town Mayor Oyama arrested on charges of receiving a ¥14-million bribe from a general contractor

23 July

Ibaraki Governor Takeuchi arrested on charges of receiving ¥10 million from a general contractor

9 August

Hosokawa cabinet formed


Bilateral talks on construction

27 September

Miyagi Governor Honma arrested on charges of receiving a ¥20-million bribe from a general contractor


Chief Cabinet Secretary Takemura announces that an open bidding system will be put in place for large-scale public works projects and consultancy contracts; USTR Kantor defers a retaliatory action until 20 January




USTR Kantor includes construction in a list of 43 areas in which impediments block fair trade in Japanese markets

11 March

Member of Parliament Nakamura arrested on charges of improper use of the powers of office

31 March

USTR Kantor cites problems in access to Japan's construction market as one of 43 areas affected by unfair trading practices; threat of Super 301 looms

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