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Polls indicate, however, that irrational suspicion of Japan is growing in America, fueled in part by Japanese purchases of prominent U.S. companies and real estate and by a sense that America is falling further behind in the technology race. Says a State Department expert: "We could knock down every trade barrier there is and cut down our trade deficit to zero, but we still must face this issue that we believe Japan is becoming the dominant economic power, and we're losing our ability to cope."
The L.D.P.'s election win may help with several of the immediate problems. | The Liberal Democrats are perceived as being more willing to compromise with the U.S. than Japan's opposition parties, which espoused more protectionist policies to favor farmers and small shopkeepers. The voting outcome may also be useful in strengthening the position of Kaifu, whom one Washington-based diplomat calls a "very healthy influence" on the U.S.-Japanese relationship. This week Kaifu will attempt to smooth relations with the U.S. when he makes a hastily scheduled trip to California to meet with President Bush.
A relative political unknown without a strong base in the L.D.P., Kaifu, 59, was named Prime Minister in a moment of desperation last August. The party had just suffered an embarrassing defeat in the upper-house election, and was plagued by scandals involving everything from tainted stock dealings to a loquacious mistress of a previous Prime Minister. Now that the Liberal Democrats are out of danger, Kaifu's rivals within the party would like to replace him. They belittle his foreign policy experience and claim he cannot tackle problems of the magnitude of the U.S.-Japanese friction. Kaifu is keenly aware that his longevity in office may depend on how well he handles the strained ties -- and that is no small incentive.