./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q2/JPN/28
19 May 1999
(99-2022)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Follow-Up Questions from the EUROPEAN COMMUNITY
Regarding the New and Full Notification of JAPAN1
The following communication, dated 11 May 1999, has been received from the Permanent
Delegation of the European Commission.
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The numbering follows the order of the Community's original questions (document
G/SCM/Q2/JPN/21).
I. NOTIFIED SUBSIDIES
I-A-11/12 Is it the case that "Subsidy for measures to promote the textile industry" was
introduced in 1998.  Is this the reason why it was not notified in the 1998 new and full notification?
(The same question is valid for Programme 1-B-2) .
I-A-No. 41 The notified subsidy budgeted for FY 1998 was zero and the duration of the subsidy
is given as 1992-97.  Is it therefore correct that this subsidy was terminated at the end of FY 1997?
I-A-Nos. 47 and 48 When will Japan notify the "Subsidy for promotion of facilities for the
rationalization of energy use?"
II. NON-NOTIFIED SUBSIDIES
A. NATIONAL PROGRAMMES
II-A-No. 12 The definition of an SME differs according to its sector of activity.  In the absence of
a consistent definition, is this subsidy not specific?  (The same question is valid for Programme
No. 33).
II-A-No. 13 From a general point of view, a financial contribution to a public body can confer a
benefit as defined by Article 1.1(b) of the Subsidies Agreement.  If this were not the case, state-ownedcompanies would be treated more favourably than private sector companies.  In the light of this, could
Japan explain why, in this particular case, there is no subsidy?  (The same question is valid for
Programmes Nos. 14, 18, 24, 30, 31, 41, 42, 43, 44 and 47).
II-A-No. 15 Could Japan explain exactly why there is no financial contribution from the
government in the case of such contract research?  How is the budget for the programme spent and
                                                     
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who are the recipients of the funding?  To what extent are the results of the research made available to
the public, and to what extent does industry benefit?  (The same question is valid for Programmes
Nos. 20, 22, 27, 34, 41 and 42).
II-A-No. 21 If this programme is only available for the creation of new industries, firms in
existing industries are presumably not eligible.  Therefore, how can this programme be non-specific?
II-A-No. 40 Is it not the case that many firms will simply never be in a position to introduce such
energy equipment?  In view of this, how are the criteria objective and the subsidy non-specific?
II-A-Nos. 49, 50 In practice, which type of companies take advantage of these programmes?
Is there predominant use by any sector or sectors?
B. SUB-NATIONAL PROGRAMMES
II-B-1 With regard to the cited subsidy programmes of Iwate, Tottori and Fukui, would Japan agree
that these programmes are specific within the territory of the granting authority, even if they are not
export contingent?
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