The Yomiuri Shimbun
This is the second installment of a three-part series investigating how Naoki Akiyama, an executive director of the Japan-U.S. Center for Peace and Cultural Exchange who is under arrest on suspicion of evading taxes on a huge amount of funds provided by defense-related companies, became a powerful go-between for political, bureaucratic and business circles in Japanese and U.S. defense fields.
In summer 2002, Naoki Akiyama, director of the Japan-American Cultural Society--now known as the Japan-U.S. Center for Peace and Cultural Exchange--visited the head office of a Tokyo-based heavy industries company and urged an executive to join his center, saying, "You can become acquainted with U.S. lawmakers in defense fields, including former Defense Secretary [William] Cohen."
Akiyama reportedly told the executive that his firm might have the opportunity to sell its warship repair service to the United States.
When major repairs are necessary, U.S. warships homeported at U.S. Navy bases in Yokosuka, Kanagawa Prefecture, and Sasebo, Nagasaki Prefecture, always return to the United States.
For heavy industries companies with shipbuilding divisions, repairing U.S. warships would have been a boon to their businesses.
In the past 15 years, Japan's budget for procuring defense equipment has been about 900 billion yen per year. At the time of Akiyama's conversation with the heavy industries company, it was unlikely the amount would increase, and the proposed new business was highly attractive.
But it was impossible for private companies to win such U.S. forces-related contracts on their own. Akiyama knew this and used it to his advantage.
Three years later, major defense equipment providers, such as Mitsubishi Heavy Industries Ltd., Kawasaki Heavy Industries Ltd., Kobe Steel Ltd., Mitsubishi Corp., Sumitomo Corp., Itochu Corp., Mitsubishi Electric Corp. and Toshiba Corp., joined the Japan-U.S. Center for Peace and Cultural Exchange en masse.
Akiyama's proposal was made from a seemingly reasonable perspective: Should only the Defense Ministry have the right to discuss national security?
Akiyama insisted private companies felt they should jointly study the issue.
A heavy industry company executive said, "The invitation's aim was proper, so nobody could oppose it."
Behind the scenes, Akiyama encouraged companies to realize a plan to let U.S. forces repair their Aegis warships and fighter jets in Japan.
Akiyama mentioned the name of former Defense Minister Fumio Kyuma to executives, telling them that the former minister supported the proposed plan.
To secure contracts for Japanese companies to repair secret U.S. weaponry, it was essential that the two governments sign a comprehensive accord designed to prevent secret military information from being leaked to a third country.
Kyuma was a strong proponent of such a pact, voicing his support on several occasions. In May 2007--while he was the defense minister--the accord was signed.
But Akiyama's business plan eventually failed because all heavy industry companies involved judged the repair works to be unprofitable.
However, because the Japan-U.S. Center for Peace and Cultural Exchange linked together defense companies, revenue from joining and membership fees jumped from about 2.77 million yen in fiscal 2004 to about 12.96 million yen in fiscal 2005. The center benefited financially.
Companies discontinued their memberships in the center between March and May this year after suspicions about Akiyama surfaced.
When asked why companies had not left the center earlier, a trading company executive said, "We depend on people like Akiyama to be connected with politicians."
Political judgments are always involved when the government introduces new types of fighters or increases the number of Maritime Self-Defense Force destroyers.
A former defense equipment company executive said, "Even though companies need ties with politicians, we want to avoid having direct contact with them."
Attitudes like this were a reason Akiyama could act as a go-between.
A source at the Japan-U.S. Center for Peace and Cultural Exchange said Akiyama often made condescending remarks about member companies.
The source quoted Akiyama as saying, "[Member companies] can't get any contracts without the help from the center."
In an interview with The Yomiuri Shimbun, Akiyama said: "The Japanese defense industry depends on the government from the beginning to the end. They don't make their own efforts. Development costs also are paid by the government. While U.S. military companies are forced to make independent efforts [to secure contracts], Japanese companies are spoiled [by the government]."
(Jul. 30, 2008)
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