JAPAN SAYS OECD STUDY ON SUBSIDIES STILL ONGOING
Japanese Agriculture Ministry officials
said a study of agriculture subsidies by the Organisation for
Economic Cooperation and Development, OECD, is still under way
and will be completed sometime next month.
    The officials said the study has been inaccurate so far,
and they said Japan would comment on the final results.
    A Reuter report from Washington yesterday said the study
has found that Japan has the highest agriculture subsidies in
the world and that dairy farmers benefit more than any other
commodity producers from subsidies. The study has not been
officially released due to objections from some countries.
    Japan has withdrawn its objection and decided to accept the
release of the study, the agriculture ministry officials said.
OECD directors are expected to approve the release at a meeting
in mid-May.
    One agriculture ministry source said the study so far was
based on the years 1979-81. Japanese subsidies have dropped
sharply since then, partly because of tight budgetary policy,
and foreign currency factors have also changed, he said.
    "The study is ... Unfair and unacceptable because it does
not take account of various differences in farming conditions
in each country, such as geography," the source said.
    He said it is highly likely that the final study will show
Japan has the highest farm subsidies in the world.
    "This would increase foreign pressure to open Japan's farm
market further, but this would have little impact on Japan's
agriculture policy," he said, without giving further details.
    A main purpose of the study is to clarify export subsidies
by major exporting nations like the United States and the
European Community, but Japan is a major importer, he said.
 Reuter
