RESTRICTED
WORLD TRADE G/SCM/Q2/JPN/1
26September 1996
ORGANIZATION(96-3832)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from KOREA Regarding theNew
andFullNotification ofJAPAN1
Thefollowing communication, dated 19September 1996, hasbeenreceived fromthePermanent
Mission ofKorea.
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6. Subsidy forpromotion oftextile andapparel industry
7. Loan guarantee forpromotion oftextile andapparel industry
Initsnotification, Japan indicated thatthese twosubsidies (grants andloanguarantees) which
promote thetextile andapparel industry areprovided tothegroups ofenterprises approved under the
LawonExtraordinary Measures fortheStructural Improvement oftheTextile Industry.
Could Japan provide amore detailed explanation ofthecriteria usedforapproval andthe
conditions ofthesubsidy inconnection withtheproduction, export/import andstructural adjustment
cost,etc?
Inaddition tothat,cangrants andloanguarantees bothbegiven toanenterprise atthesame
time?
8. Grant forpromotion ofresearch anddevelopment offuture ships
Could Japan explain towhom andhowthesubsidy isprovided?
Inaddition tothat,could Japan provide more details about theconditions andcriteria according
toArticle 8.2oftheSCM Agreement ontheassistance forresearch?
15. Special depreciation onmachinery
Japan'snotification states that"special depreciation onmachinery" isprovided tosmall and
medium-sized corporations (1)whose plansforstructural improvement areapproved and(2)whoengage
inbusinesses qualified asnecessary forimmediate structural improvement.
Could Japan provide theselection criteria fortheplans andbusinesses eligible forsubsidy?
1G/SCM/N/3/JPN +Rev.1 +Suppl.1.
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17. Special depreciation oncertain machinery usedforhigh-technology inthedesignated high-
technology industrial development areas (Technopolis)
Japan'snotificationstatesthatthissubsidyisprovidedtocorporationsthatengageinthequalified
high-technology industries.
CouldJapanprovideamoredetailedexplanationoftheselectioncriteriaforthesehigh-technology
industries andthespecific industries orenterprises eligible forthesubsidy?