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A. I told the Japanese publisher that the book should be published in the U.S. so that Americans could better understand what Japanese are thinking. But someone circulated a pirated translation, a clear infringement of copyright. The book is basically written for Japanese readers, to tell them that it's time for Japan to stand up and speak its mind. I mention at one point in the book that Japan could drastically change the world balance of power by selling advanced computer chips to the Soviet Union. This is a very provocative thought, even to me. But I had to say it.
Q. Why?
A. Let me explain. I was in Washington two years ago, right after the U.S. Government slapped punitive tariffs on Japanese electronics goods over the semiconductor issue. The mood was hysterical. At a party an American politician told me that because the U.S. and the Soviet Union were moving closer together, the world power balance had shifted, and Japan was no longer very important. He had the nerve to tell me that the Americans and the Russians share the same identity because they are white. Well, that's fine. But if Moscow is looking to Washington for high technology, Japan is the country that has it. The Soviet Union is free to choose between Japan and the U.S. for high technology, just as we are free to choose between the U.S. and the Soviet Union. In fact, the U.S. can't make reliable one-megabit chips. Japan is the only country that can mass-produce high-performance semiconductors. When I said this at the party, the Americans turned pale. But let me remind you that I was only responding to American threats that Soviet- American detente left no room for Japan.
Q. Is that why Japan should be more assertive or, as you put it, stand up and . say no?
A. Well, of course. But at the same time we have to say yes on many issues. First of all, we -- particularly politicians -- should say no to some groups of people at home. For example, Japan's distribution system is a shambles. The Japanese Fair Trade Commission is a den of Finance Ministry bureaucrats in collusion with industries. It's perfectly understandable that the U.S. got frustrated over some trade issues.
Q. You sound very conciliatory.
A. I believe in talking out problems between Japan and the U.S. But the Foreign Ministry, which sets the tone for negotiations, must stand firm in expressing Japan's position. For example, the U.S. claims that our keiretsu-ka ((vertical integration)) of banks and other financial institutions is outrageous. I don't agree. It's an idiosyncrasy of the Japanese economy. But unless we make the structure of keiretsu-ka clear to all, the Japanese market remains very unfair to people who come from abroad to do business in Japan.
Q. But what you say. . .