Japan-United States Friendship Commission 1997-1998 Biennial Report

Japan-United States Friendship Commission 1999-2000 Biennial Report

The Japan-United States Friendship Commission, 1997-1998

Japan-United States Friendship Commission 1999-2000 Biennial Report

The Japan-United States Friendship Commission, 1997-1998

Program Highlights
1. Japanese Studies in the United States

2. The Study of the United States in Japan

3. Policy-Oriented Research

4. Public Affairs/Education

5. The Arts

6. CULCON

Program Highlights 1. Japanese Studies in the United States

2. The Study of the United States in Japan

3. Policy-Oriented Research

4. Public Affairs/Education

5. The Arts

6. CULCON

Program Highlights
1. Japanese Studies in the United States

Chairman:

Vice-Chairman:

Members:

Staff:

Head Office:

Japan Liaison Office:

Chairman:

Vice-Chairman:

Members:

Staff:

Head Office:

Japan Liaison Office:

The Japan-United States Friendship Commission, an independent federal agency dedicated to promoting mutual understanding and cooperation between the United States and Japan, administers grant programs in the following areas:

-Japanese Studies in the United States
-Policy-Oriented Research
-Public Affairs/Education
-The Study of the United States in Japan
-The Arts
-Infrastructure Building

A Message From The Chairman

I am pleased to present the Commission's Biennial Report for Fiscal Years 1997 and 1998.

The Commission’s original mandate to ensure a vital base of expertise on Japan in the United States remains strong and meaningful today, but increasingly, the Commission looks for means to project that expertise in ever-wider spheres of activity where doing so will not dilute or distort it. One important arena where the Commission has sought to expand the boundaries of expertise is the United States Congress, where the Commission’s support of the Legislative Exchange Program at The George Washington University expanded this past year to include the leadership of both the Congress and the Diet. In the same way, it continues to give high priority to the professional dissemination of the results of Commission-supported policy research by experts in universities and research institutes.. In April, 1997, for example, it supported a conference in Washington, DC to bring the results of research on deregulation in Japan to the policy community’s attention. The conference, organized for the Commission by the Japan Information Access Project, proved a major success and has created a model and a standard for the Commission in charting its current and future efforts in this area.

In other program areas, the most significant work of the Commission over the past two years is a new category called "Infrastructure Building." Through this, the Commission will support the costs of professional staff development to provide national leadership in emerging areas of education and exchange. The model for this category is the National Coordinating Committee on Japanese Library Resources (the NCC), founded jointly with the Japan Foundation in 1991. Its success has encouraged the Commission to seek other opportunities to help develop professional leadership in such areas as broadcast media, study abroad in Japan and Japanese language education in the United States. Infrastructure building is a concept that can be applied across the Commission’s five traditional areas of support. We look forward to increased activity in this new venture.

Throughout the period under report, the Commission has continued to support the arts, and particularly, the Creative Artists Exchange Fellowship Program, which the Commission operates jointly with the National Endowment for the Arts. The artists sent to Japan for half-year residencies under this program continue to enrich American cultural life with the insight and techniques they bring back upon their return. Over the period of this report, the Commission preserved this program with the NEA by sending three artists annually to Japan. I am happy to report that beginning with the 1999 fiscal year, we will once again be able to send five artists – the original goal of the program. In addition, it is important to note here a significant new priority in the Commission’s program of support for the arts, namely, its intention for the foreseeable future to support exclusively the exchange of American art and artists to Japan. I encourage interested applicants to consult with Commission staff for details of this new priority.

To support even this limited number of priority programs requires significant resources. Over the past two years, the Commission has drawn heavily on its funds to maintain even a minimal level of activity. At this rate of drawdown, the Commission would reach an untenable financial situation early in the next decade. Over the past two years, therefore, the commissioners and staff have worked hard to obtain relief from the regulations governing its investment authorities found in the Commission’s enabling legislation. Thus, it is perhaps the most significant achievement of my term as Chairman of the Commission that the Commission’s legislation was amended by PL 105-277 in October, 1998 to allow it to convert its dollar and yen funds freely to achieve maximum return on its investments in government issues of the two countries. The success of this legislative effort means the Commission will no longer need to draw down on its principal, relying instead on the increased revenue this more modern financial authority brings. Readers will find a significantly increased account of grant activity in the next biennial report.

Finally, I am pleased to report on the successes of CULCON over the past two years. We have instituted a major new program to facilitate the exchange of American undergraduates for study in Japan in new semester- and year-long English-language programs at Japanese national universities. Projects funded by the Commission to support this initiative will be found under Japanese Studies in both years of this report. In addition, the CULCON Information Access Working Group has sought to enhance the flow of information through the Internet to users in both countries, especially that relating to bibliographic controls in the library communities in the two countries. In this regard, the NCC, mentioned above, has played a seminal role in carrying out many of the Working Group’s recommendations. The next CULCON session will be held in Okinawa in February, 1999, and I look forward to reporting to you on the results of the forthcoming session.

With a permanent staff of only four, the Commission remains one of the smallest and most cost-effective independent federal agencies. Its structure – a board of government officials and private citizens who serve as a peer review panel – is unique to the federal system. This experiment in mixing the strengths of the private sector and of the executive and legislative branches represents in my view an excellent example of the current search for effective public/private partnership. This record of the Commission’s achievements of the past two years speaks to the success such partnerships can produce.

Richard J. Wood

Chairman
January, 1999

Dr. Richard J. Wood* **
Dean
Yale Divinity School

Mr. Glen S. Fukushima* **
President,
Arthur D. Little (Japan), Inc.

Mr. Burnill F. Clark**
President, KCTS TV, Seattle

Hon. Joseph D. Duffey* **
Director, United States Information Agency

Mr. Lawrence J. Ellison (from Oct. 1, 1998)
Chairman and CEO, Oracle Corporation

Hon. William E. Ferris, Jr.
Chairman, National Endowment for the Humanities

Dr. Carol Gluck* **
Professor of History
Columbia University

Mr. David I. Hitchcock (ending Oct. 1, 1998)* **
Senior Associate
Center for Strategic and International Studies

Hon. William Ivey
Chairman, National Endowment for the Arts

Mr. Jeffrey M. Lepon**
Partner, Lepon, McCarthy, White & Holzworth

Hon. David Longanecker**
Assistant Secretary for Higher Education Programs
Post-Secondary Education
US Department of Education

Mr. Thomas E. McLain**
Partner, Perkins Coie

Hon. Frank H. Murkowski
United States Senate

Hon. Thomas Petri*
United States House of Representatives

Hon. John D. Rockefeller IV*
United States Senate

Hon. Stanley O. Roth**
Assistant Secretary of State
for East Asian and Pacific Affairs
US Department of State

Mr. George H. Takei**
Actor/Writer
Los Angeles, CA

Hon. Robert Wise
United States House of Representatives

Mr. Ira Wolf**
Director, Japan Relations and Vice President
Eastman Kodak Company

Executive Director
Dr. Eric J. Gangloff

Assistant Executive Director
Ms. Margaret P. Mihori

CULCON Program Officer
Ms. Pamela L. Fields

Secretary
Ms. Roberta S. Stewart

1120 Vermont Avenue, NW, Suite 925
Washington, DC 20005
Telephone: (202) 275-7712
Facsimile: (202) 275-7413
e-mail: jusfc@compuserve.com

c/o Program Office
The International House of Japan, Inc.
11-16, Roppongi 5-chome
Minato-ku, Tokyo 106
Japan
Tel. (03) 3470-4611

*Members of the Executive Committee

**Members of CULCON

The Japan-United States Friendship Commission in 1997-98

In compliance with the provisions of PL 94-118, as amended, the Japan-United States Friendship Commission is pleased to submit to the President and to the Congress this report on its twenty-first and twenty-second years of operations covering the period from October 1, 1996 to September 30, 1998, which corresponds to the Federal Fiscal Years 1997 and 1998.

Background and Overview

The Japan-United States Friendship Commission is an independent federal agency, dedicated to promoting mutual understanding and cooperation between the United States and Japan. In passing the Japan-United States Friendship Act (PL 94-118) in 1975 to establish the Commission, Congress acknowledged the unique character and great importance of the relationship between Japan and the United States, and in particular the need to strengthen its foundation through educational and cultural exchange programs at the people-to-people level. It was searching for the means to develop the knowledge, the leaders and the friendly associations which in turn would improve the likelihood that any problems that might arise on the national level could be resolved on a basis of mutual understanding and respect.

To carry out these efforts, the Congress established the Commission, the only federal agency whose sole purpose is to promote friendship and understanding with a single foreign country. In the Friendship Act, it also appropriated the Japan-United States Friendship Trust Fund, an endowment denominated in both yen and dollars with a combined value of approximately $36 million at the exchange rate then in effect. These two funds represented a portion of the money paid by Japan to compensate the United States for post-World War II assistance, and for certain public facilities on Okinawa at the time of the reversion of the Ryukyus. The former payment became the yen fund, and the latter the dollar fund. The Commission was authorized to invest the Fund in government obligations, and to expend the interest earnings, subject to annual appropriation thereof, and up to five per cent annually of the principal of the Fund to carry out the purposes of the Act. In 1982, the Act was amended to permit the Commission to invest such gifts as it may receive and to spend the principal and interest earnings thereof without reference to the appropriations process.

Although governmental, the Commission operates much like a private foundation. The Commission is composed of a board of eighteen commissioners and a permanent staff of four officers. The board of commissioners is divided equally between nine senior representatives of the United States government from both the legislative and executive branches, and nine private citizens, including the chairman. Of these eighteen, twelve members, including the private citizens and the representatives from the Departments of State and Education and the US Information Agency, serve ex officio on the Commission by virtue of their appointment to CULCON, a binational advisory board to the two governments in educational and cultural affairs. The board’s chief responsibility is to manage the Trust Fund, principally by investing it and using the proceeds to make grants to institutions in the United States and Japan to develop programs of education and cultural exchange.

It does not require special insight to comprehend that the mission given to the Commission remains valid. The relationship between Japan and the United States has no counterpart. In sheer size, in its variety and complexity, and in its mixture of cooperation with competition, friendship with rivalry, it stands alone.

The relationship stands, however, on a narrow and fragile base. Obviously, as the history of the past fifty years demonstrates, the United States and Japan have much in common in terms of broad national objectives. In the short term, each nation has its own objectives and concerns. Moreover, the record of that relationship shows that the centuries-old differences in thought patterns, value systems, social and economic behavior, decision-making processes and means of communication can readily lead to mutual misunderstanding and friction. There is above all a language barrier that all too often forces each nation to react to the other through stereotypes. There is a severe imbalance in the amount of attention that the media in the two countries devote to each other. Finally, there is growing recognition that many of the problems that exist and persist in the relationship are not amenable to easy solutions occasioned by enhanced cultural understanding alone. New thinking about the relationship and new ways of managing it -- based on greater understanding of the character and causes of these problems and devised through mutual deliberation -- are called for.

The Commission today has a new sense of purpose and a more focused program of activity to meet the new conditions both of its financial management and of the binational relationship. In accordance with its mandate, it continues to address the problems and misperceptions that exist between Japan and the United States by funding projects that will lead to greater mutual understanding and cooperation. It asks, however, that the projects it supports take cognizance of the contemporary relationship and each in its own way contribute back to the public good that PL 94-118 envisioned and sought to embody in the Commission. Currently it places priority on several areas that will directly affect the quality and management of the bilateral relationship, including policy research and its dissemination, and programs of education and exchange for Members of Congress.

To secure the resources necessary for its operations, the Commission sought and achieved in 1998 an amendment to PL 94-118 that allows it to convert its dollar and yen funds at will, to achieve the best rate of return available in government obligations of the two countries, and to convert the interest income into the currency of the other country to carry out its operations. For the two years under consideration in this report, the Commission resorted to drawdown of its funds, specifically the yen fund, to maintain even a minimally acceptable level of grant-making activity. Up to 1997, the Commission had followed a strict policy of no drawdown of funds, limiting support to what interest income alone would allow. With the historically low interest rate that came to dominate Commission investments in Japanese government bonds, however, it had a very difficult dilemma to resolve, beginning in 1997. The origin of the dilemma was found in the language of PL 94-118, which required that the dollar and yen funds be kept separate and virtually unconvertible. If the Commission limited activity to interest income alone, it could preserve its principal to maintain long-term viability, but it risked allowing institutions of long-standing, vital to the national interest and unique in character, to collapse if critical Commission funding were to cease.

This was not an easy choice, for those institutions faced with danger would not easily be recreated if allowed to disappear. The commissioners chose to sacrifice Commission principal in the short term, knowing that the long-term benefit to national interest would be better met by preserving the institutional base of expertise and knowledge on Japan in the United States, and seeking relief from the restrictions that prevented the currencies from being freely converted. If there is a story to the Commission in these two fiscal years, it is in its effort to obtain relief from the restrictions on its investment and financial management authorities, which it did obtain in PL 105-277. Achieving it has modernized the Commission’s finances to a great degree and has brought about the desired effect of significantly increasing income from the Friendship Trust Fund. The effect of that increase should be seen in the next biennial report.

The story of this amendment serves as an interesting footnote to the Commission’s history as well. The original of the Commission’s yen fund was GARIOA, a fund provided by the Government of the United States to Japan for assistance to help redevelop the economy in the immediate postwar period. GARIOA funds were, for example, the first funds available for Japanese scholars to visit the United States for training and research at that time, and their repayment by the Government of Japan to the United States during the ambassadorship of Edwin O. Reischauer was used in part to establish the yen account that ultimately became the Friendship Trust Fund yen account. By converting that fund into dollars, rather than spending it down and out, the Commission will be able to keep its value intact and thus preserve not only the spirit of GARIOA, but its resources as well, for the future.

In the period under consideration, there are two major trends to note in the Commission’s program of support for Japanese studies in the United States: vigorous support for the basic institutions of Japanese studies; and a new interest in CULCON recommendations related to this field. With its overlapping membership with CULCON, the Commission is in an excellent position to initiate projects in cooperation with the private sector that will help implement CULCON recommendations.

For the past two years, the direction of this fundamental category of Commission activity has been dictated by discussions held among the commissioners in spring, 1996, on program priorities. At the time, the Commission faced declining interest income, especially in the yen fund, which is critical to support of this category. They concluded that the Commission would need to divest itself of many of its programs of long-standing in this category if it were to help preserve even a minimal number of the basic institutions of Japanese studies in the United States and still have any funds available for new initiatives. In April of that year, they published the following announcement:

In the area of Japanese studies, the Commission will in principle provide seed money only to assist those start-up projects that have good prospects of converting to a self-funding basis within a reasonable period of time. Those projects that the Commission has supported annually on a long-term basis will be treated on a case-by-case basis, within the following guidelines: those that serve to "retail" the Commission’s general support to the individual scholar and researcher over a broad range of disciplines and geographical regions, such as the Northeast Asia Council of the Association for Asian Studies, will be given precedence over those that serve only a single discipline, institution, project or region.

As a result of these discussions, readers of this report will find that Commission support of Japanese studies has been concentrated on four major institutions that serve the field nationwide: The Interuniversity Center for Japanese Language Studies in Yokohama; the National Coordinating Committee on Japanese Library Resources; the Association of Asian Studies; and the Social Science Research Council. These grants serve to support language study, library collection development, and basic research in the case of the last two. In the Commission’s judgment, these grants help serve to keep the field vital as a whole, and are able to project their services and resources both to the highest level, and simultaneously, to the widest level possible of participation by individuals in the field.

Even here, the Commission continued to work with these institutions to help them find ways of diversifying their sources of support, given the limitations the Commission faced during this period on its own funding base. In particular, it worked with the Interuniversity Center to design and launch an endowment drive. That initiative has been highly successful and will help the Center better tolerate the vagaries in its external funding sources that have made its management increasingly difficult.

In new ventures, the Commission worked with two organizations, the Association of American Colleges & Universities (AAC&U) and the Association of Teachers of Japanese (ATJ), to help them design projects to implement a CULCON priority, the Bridging Project. Since 1993 CULCON has set as its foremost priority significantly increasing the number of American undergraduates studying in Japan, and the Commission has worked to help create an institutional base to set that priority in motion. In the last reporting period, the Commission had worked with the Japanese Ministry of Education and the US Department of Education to begin the work of creating English-language curriculum at Japanese national universities to expand study opportunities for American undergraduates. In this reporting period, the Commission turned its attention to American campuses, working with the AAC&U to foster greater interest in study abroad opportunities in Japan among the American professorate, and with the ATJ to recruit students for study. This latter project, the Bridging Project Clearinghouse at the ATJ, was created under the rubric of the Commission’s Infrastructure Building initiative. For its part, the Commission has launched a fundraising effort for student scholarships for the Clearinghouse to help move the effort forward.

The Study of the United States is a core element of the Commission’s programs as defined in its enabling legislation. In its implementation, the Commission looks for guidance and leadership in this field from Japanese colleagues and friends. Of particular interest in this regard was a comprehensive survey of the field organized in Japan in 1997 by the International House and partially funded by the Commission that outlined current maximizing dollar income in both countries as well as building on earlier efforts in the field. This approach is represented by the Commission’s grants to both the American Studies Association of the United States (ASA), and the Organization of American Historians (OAH), to carry out short-term exchanges for lecturing and consultations between their members and members of the Japanese Association of American Studies (JAAS). By arranging extensive opportunities for graduate students in Japan to establish personal contacts with ASA and OAH members, the plan looks forward to the nurturing of a new generation of American studies scholars in Japan. Even more so, by arranging for JAAS members to lecture in classrooms and consult with graduate students in the United States, the ASA has converted the Commission’s long-term support of its exchange program into a truly exciting and innovative approach to the field. Future plans call for opening the exchanges of lectures and consultations to practitioners from third countries in Asia with encouragement from the Commission.

Since 1990, the Commission has made a concerted effort to take a more active stance vis-à-vis the US-Japan relationship and the serious challenges facing both countries in its management through placing emphasis on supporting policy-oriented research projects and their professional dissemination. In sponsoring policy research projects the Commission intends that the results of these research efforts be pertinent to those concerned with Japan in the Congress, various think tanks, academia and the media. In this category, the Commission places high priority on projects that deal with Japan-US economic, political and security policies. In the period under consideration, the Commission also announced interest in projects analyzing trends in Japanese society and their implications for bilateral relations. Increasingly, the Commission seeks research projects will provide analysis of pertinent issues in the bilateral relationship in broader contexts, whether disciplinary, regional or global.

Support of policy research was a high priority for the Commission in the period under report, and will remain a high priority for the foreseeable future. Key to its success is dissemination of the results, and thus in reviewing proposals to the Commission for support under this rubric, the commissioners pay close attention to the quality and feasibility of the dissemination plan. Late in 1998, the Commission made a grant to the Japan Information Access Project to serve to provide professional advice on dissemination to policy research projects supported by the Commission, and opportunities at various policy venues in Washington, DC for direct presentation of results by the researchers in person.

Key to the dissemination plans of the Commission is the policy conference format. The Commission supported two such efforts in this period, the first in April, 1997, and the second in October, 1997, on deregulation in the Japanese economy and on intellectual property rights in Asia respectively. Both were based in part on research previously sponsored by the Commission and were organized for it by the Japan Information Access Project.

In 1997 the Commission announced priority topics for research on competition policy and on social transition and change in Japan. Under the former topic it provided support for a major research project directed by Professor Mark Tilton of Purdue University in FY 1998 and looks forward to the results of that project and several others in the conference format described above in the 1999 calendar year. Surprisingly, the topic of social change in Japan has not yet elicited significant interest from the research community, and the Commission currently is considering an alternative topic of greater salience.

In addition to the projects described above, the Commission supported various projects in security issues, increasingly looking at US-Japan security relations in the context of East Asian security relations as a whole. Finally, the Commission also supported a project on US-Japan trade relations at the Council on Foreign Relations in FY 1998 under the leadership of Senator John D. Rockefeller IV and Representative Amo Houghton, to ask what better initiatives the two countries might take as trade relations worsen in the late 1990s. This project also will be given a major public presentation by its co-chairmen to the Washington policy community in 1999.

A full record of the Commission's support for policy-oriented research projects for both FY 1997 and FY 1998 follows in this report. Readers are urged to consult the Commission’s website to link directly to the results of many of these projects that are posted on it.

In this category, the Commission endeavors to meet the growing demand for information on Japan throughout the United States. The Commission emphasizes projects that disseminate information on major issues between the two countries through the creation of public forums and conferences for the exchange of opinion and information among professionals and policymakers, and through print, broadcast and multimedia outlets in both countries.

The most important event of the past two years in this category was the end of the Gift Fund. The Gift Fund was a cooperative effort of the Commission and the Government of Japan to help build Japan America societies across the United States. Beginning in 1981, over a span of five years, the Government of Japan made several gifts to the Commission totaling five million dollars for this purpose. The Commission used these funds at an average of $300,000 annually to help newly-forming societies with seed grants for administrative purposes, and once formed, with grants for programs on public and policy aspects of US-Japan relations.

When the Commission began this venture, there were perhaps a total of seven such societies on the two coasts. Today, there are more than thirty-five such societies across North America, tied together through a vibrant network of mutual programming and shared administrative mechanisms, and overseen by the National Association of Japan-America Societies, Inc., (NAJAS). In 1998, with the end of the Gift Fund in sight, the Commission concluded that its historical mission in helping establish this network had ended. Future efforts in fundraising and organizational development properly belonged to the societies themselves, represented in American public life on a national plane by NAJAS. The societies themselves have set a policy of converting much of their common administrative tasks and information sharing to the US-Japan Links, a shared website belonging to all the societies that the Commission and its Japan counterpart, the Center for Global Partnership, have helped support over the past several years.

The Commission lacks the staff and funding to make a major contribution to the complex and costly field of media. Thus, beginning in FY 1997, under its "Infrastructure Building" category, the Commission worked with KCTS, Seattle, a major PBS programming station, on Japan Connection, a clearinghouse for the production and distribution of information on Japan for newly emerging multimedia outlets. Now in its second year of operation, the Connection has made considerable progress in organizing interactive multimedia conferencing for numerous professional non-profit organizations on Japan-related issues, production of educational and business materials on Japan for interactive use over multimedia outlets, and plans for two series of documentaries on Japan-related themes for the broadcast media. Again, as with the NCC under Japanese studies, the Commission sees the Japan Connection as an innovative means the Commission can leverage its relatively modest resources into programs of truly national impact.

In the area of counterpart exchanges, the Commission placed increased emphasis on support of congressional exchanges during the period under report. Of particular note were developments in the Legislative Exchange Program, a Commission-supported element of the larger US-Japan Economic Agenda of The George Washington University. Over a decade, groups of legislators from both the Congress and the Diet met in semiannual meetings to hold direct discussions on issues affecting the bilateral relationship and of common interest to both societies. Over time, the two groups of core legislators not only came to possess a body of solid knowledge about the political process of the other country and of the views and opinions of their counterparts, but they also came to form close personal bonds

In 1998, the leaderships of the Congress and the Diet designated this program to help organize a more systematic exchange of legislators between the two bodies that would extend to members of the leaderships themselves. The core members in both countries took up the challenge and designed a program that would preserve the benefits that close personal contact and frank and open discussion in a common language had traditionally bequeathed, but that would also allow for participation at the highest levels and in more formal settings. The expanded program will begin in an experimental phase in 1999, and the Commission has committed the resources necessary on the US side to support the expansion. We look forward to the success of this very important initiative.

The Commission continues to support projects in the arts of the highest merit, with emphasis on collaborative projects in contemporary modes. It recognizes that it must take an increasingly selective approach to funding in this field, given pressure in other program areas. However, it supports the arts in the firm belief that they can help foster better understanding between the two countries at a time when they face increasing strain over trade deficits and other current issues.

In FYs 1997 and 1998 the Commission continued to work closely with the National Endowment for the Arts (NEA) and the Japanese Agency for Cultural Affairs in sponsoring the US-Japan Creative Artists Exchange Fellowship Program. The national competition for the fellowships awarded annually to American participants is administered by the NEA and draws hundreds of applications from established creative artists in a wide range of disciplines. The recipients spend six months in Japan, studying Japanese culture and its manifestations in their particular fields. In addition, the Commission continued to provide support to the International House of Japan to hire an expert to facilitate the program on site. Given the budget constraints in this period, the joint program was able to sponsor only three artists annually, but with the beginning of the 1999 fiscal year in October, 1998, and with the enthusiastic support of the commissioners, the Commission and the NEA once again were able to increase the number to five fellowships annually.

Throughout the 1990s the Commission had given priority to the exchange of American art and artists to Japan, especially to major venues outside Tokyo, when all other factors were considered equal, but in view of the new infusion of funds from Japan to bring Japanese art to the United States, the Commission adopted this priority as its policy in support of the arts, beginning in 1998. Fundamental to this policy was a grant that year to the Japanese American Cultural and Community Center for the first year of the project "US Arts Export to Japan," an innovative approach to identifying and funding the exchange of American art to Japan through cooperation with US state arts councils and boards of trade, and prefectural arts presenters in Japan. The Commission anticipates the development of a strong base of presenters in Japan interested in exhibiting American performance and visual arts in their venues as this project matures.

In addition, the Commission supported a number of collaborative projects in line with this new policy in their developmental and presentation phases in Japan in 1998, in such projects as "The 1998 SILENCE in Japan Tour," AN Creative’s presentation of a collaborative work by the American choreographer Doug Varone, a presentation of KWAIDAN and a two-week workshop by the Ping Chong Company of New York at the Fukuno Culture Center in Toyama and residencies arranged by the Atlantic Center for the Arts for American master artists at the Akiyoshidai International Art Village in Yamaguchi.

CULCON (the US-Japan Conference on Cultural and Educational Interchange), a binational advisory panel to both governments, serves to focus official and public attention in both the United States and Japan on the vital cultural and educational underpinnings of the bilateral relationship. Its origins lie in discussion held in 1961 between President John F. Kennedy and Prime Minister Hayato Ikeda. In cooperation with the United States Information Agency, the agency with oversight for CULCON, the Japan-US Friendship Commission assumed responsibility for US secretarial functions of CULCON in 1991.

CULCON continues to serve as a forum for discussions over a broad range of US-Japan educational and cultural issues. At the same time, CULCON emphasizes the implementation of recommendations. In recent years, CULCON activities have been focused in two areas: undergraduate educational exchange and information access.

Since 1993, CULCON’s first priority has been to increase the number of American undergraduate students studying in Japan. Based on extensive research, the US CULCON secretariat developed a tri-partite, comprehensive approach to this goal: 1) to create appropriate programs for US undergraduates in Japan; 2) to develop faculty and curriculum at the United States home campuses that will allow students to form a solid base for study both before and after a study abroad experience in Japan; and 3) to gather and disseminate the information necessary to inform students of opportunities for study abroad in Japan and actively recruit them to do so.

CULCON progress in building English-language curricula at Japanese national universities has been outlined in previous Commission biennial reports. By September, 1998, over twenty national universities have programs now in operation or under development. This is a striking change from a 1993 base of zero programs.

In both 1997 and 1998, the Commission worked to fund CULCON programs on the US side that would help increase the flow of students to Japan. In both years it provided the Association of American Colleges and Universities (AAC&U) funding for projects to help teams of faculty from eight colleges and universities undertake a year of directed study of Japan and develop courses and course units that will ensure more widespread attention to Japan in the undergraduate curriculum. In a similar fashion, it provided funding in both years to the Association of Teachers of Japanese (ATJ) for the Bridging Project Clearinghouse, a center for study abroad opportunities in Japan for American undergraduate students. Its functions encompass recruitment, information gathering and dissemination and the establishment of a network of faculty "champions." The clearinghouse is located at ATJ headquarters at the University of Colorado at Boulder.

A new activity for CULCON in educational exchange in 1998 has been an aggressive campaign to raise funds in the US private sector for incentive scholarships for American students going to Japan. The goal of the campaign is to raise two million dollars over the next three years. With an average $5,000 scholarship per student, this will generate a new wave of study in Japan with an additional 400 students. The ultimate goal is to double the number of Americans studying annually in Japan on a self-sustaining basis. The work of recruitment and selection will be handled by the Bridging Project Clearinghouse.

In information access CULCON has placed priority on the need for increased flow of information, especially through the Internet, as a primary means of improving the quality and quantity of discourse between the two countries. Beginning with a broad agenda of information issues, members of the CULCON Information Access Working Group came to agree that the best means of achieving progress in this area would be to focus energies on improving flows of bibliographic and other library-related sets of data. The Working Group met for a second time in June, 1998 in Tokyo, at which meeting the members drafted a set of recommendations on library practices and information exchanges between the library and information communities in the two countries. The members agreed that talented librarians on both sides act most effectively as the gatekeepers of information to the information community as well as the general public.

Breaking with precedent, CULCON will hold its next plenary session outside Tokyo or Washington. In February, 1999 CULCON XIX will be held in Naha, Okinawa at the invitation of the Japan CULCON Panel. The binational meeting will provide an opportunity to review progress to date and to chart a course of action over the coming two years. Discussions will focus on current projects in educational exchange and information access, as well as on subjects for future action. Prior to the plenary session, the two panels will jointly host a symposium on the topic of national identity and cultural interchange in the 21st century. The results of this symposium, to include a wide range of views from local experts as well as CULCON members, will be incorporated into planning for future directions of CULCON activity.

NOTE: In the listings below, in many cases Commission support met only partial costs of the total project.

Grants Awarded in Fiscal Year 1997

October 1, 1996 - September 30, 1997

Grants Awarded			US Dollar Grants	Japanese Yen Grants
A.	JAPANESE STUDIES IN AMERICAN EDUCATION
	Faculty and Curriculum Development
	1.	Association of American Colleges & Universities - for support of the project "Faculty and Curriculum Development Seminar on Japan	62,075
	Language
	2.	Stanford University, for the Inter-University Center for Japanese Language Studies in Yokohama - for advanced Japanese language training for American graduate students		50,500,000
	Libraries
	3.	National Coordinating Committee on Japanese Library Resources - for continuation and expansion of activities, and support of the National Program for Coordinated Japanese Library Acquisitions of Multi-Volume Sets and External User Services for 1997-1998	50,050	10,000,000

Grants Awarded			US Dollar Grants	Japanese Yen Grants
	Professional Studies
	4.	Committee on Japanese Economic Studies - for support of a program to train specialists on the Japanese economy	37,000	3,750,000
	Research
	5.	Association for Asian Studies, Northeast Asia Council - for the various programs the Council undertakes to promote the teaching and study of Japan in the United States	49,105	200,000
	6.	Social Science Research Council - for fellowship and administrative support for advanced research on Japan by American scholars	80,000	6,000,000
	Other
	7.	Association of Teachers of Japanese - for support of the first year of a project to establish a clearinghouse to encourage study abroad in Japan by American undergraduate students	82,017
	8.	Columbia University, The Donald Keene Center of Japanese Culture – for support of the project "The Japan-US Friendship Commission Prize for the Translation of Japanese Literature"	18,426
	9.	University of California, San Diego - for support of a project "Competing Moderni- ties in Twentieth-Century Japan Part II: Empires, Cultures, Identities, 1930-1960"	13,225
TOTAL FOR JAPANESE STUDIES			$391,898	¥70,450,000

Grants Awarded			US Dollar Grants	Japanese Yen Grants
B.	THE STUDY OF THE UNITED STATES IN JAPANESE EDUCATION
	Research Centers
	1.	Doshisha University, Center for American Studies - for support of the activities of the Center	6,000	1,000,000
	Faculty and Curriculum Development
	2.	American Studies Association - for the second year of support of the project "Japan-United States Dialogues Across the Pacific: Curriculum, Program, and Faculty Development for an International American Studies"	6,440	1,067,360
	3.	Organization of American Historians - for support of the project "Short-term Residencies in Japan for US Historians"	5,295	1,465,500
	4.	University of the Ryukyus - for a faculty development grant for Professor Katsuyuki Miyahira, College of Law and Letters, to develop new curriculum in the area of American communications at the University of Washington, Seattle	23,017
	Other
	5.	American Studies Society of the University of the Ryukyus – for the participation of Dr. Lee Francis in the 18^th annual meeting held in Naha	3,779	140,000

Grants Awarded

US Dollar Grants

Japanese Yen Grants

International House of Japan, Inc. - for support of the project "Survey on American Studies in Japan"

2,300,000

TOTAL FOR THE STUDY OF THE UNITED STATES IN JAPANESE

EDUCATION

$44,531

¥5,972,860

Grants Awarded			US Dollar Grants	Japanese Yen Grants
C.	POLICY-ORIENTED RESEARCH
	1.	Association of Japanese Business Studies - for support of a panel to present Commission-supported research at the tenth annual meeting of the Association	2,710
	2.	Georgia Institute of Technology - for the second year of support of the project "Deregulating Japan’s Health Care and Pension Systems"	33,294
	3.	National Bureau of Asian Research - for publication of the monograph "Act Now or Pay Later: A Call for a Farsighted Policy Toward Japan’s Production Network in Asia"	5,000
	4.	University of California, San Diego - for the second year of support of the project "Deregulation and the Japanese Firm"	43,837
	5.	University of Georgia - for support of the project "Nonproliferation Export Controls: Japan, China, and the United States"	19,550
	6.	University of Washington - for the second year of support of the project "Regulating Electronics: Japan’s State Management of Competition in the Telecommunications, Computer, Semiconductor, Software and Consumer Electronics Industries"	49,360
TOTAL FOR POLICY-ORIENTED RESEARCH			$153,751

Grants Awarded			US Dollar Grants	Japanese Yen Grants
D.	PUBLIC AFFAIRS/EDUCATION
	Outreach Programs
	1.	Japan America Society of Charlotte - for the third and final year of administrative support	30,000
	2.	Japan America Society of Greater Philadelphia - for the second year of administrative support	30,000
	3.	Japan America Society, Ithaca Area - for the second year of administrative support	15,000
	4.	Japan America Society of Nevada - for the second year of administrative support	30,000
	5.	Japan America Society of New Mexico - for the first year of administrative support	30,000
	6.	Japan America Society of Northwest Florida - for the third and final year of administrative support	14,000
	7.	Japan America Society of the State of Washington - for the second year of support of the project "US-Japan Links"	30,000
	8.	Japan Society of Cleveland - for the third and final year of administrative support	25,000
	9.	Japan Society of San Diego and Tijuana - for the first year of administrative support	30,000

Grants Awarded			US Dollar Grants	Japanese Yen Grants
	Counterpart Exchanges
	10.	College and University Partnership Program - for support of the project "Commemoration of the 20th Anniversary of CUPP Japan Exchange"	5,000
	11.	The George Washington University - for support of the project "1997 GWU US-Japan Economic Agenda Legislative Exchange Program"	62,623	1,280,000
	12.	International House of Japan - for services for American educational, cultural and professional institutions		8,500,000
	13.	The Mansfield Center for Public Affairs -for support of the project "Japan-US Congres-sional Program" and other congressional exchange programs	44,705
	14.	Mississippi State University - for support of the project "Legislative Exchange on US-Japan Security Relations"	25,000
	15.	US Association of Former Members of Congress - for support of the project "Congressional Study Group on Japan" and other congressional exchange programs	35,015

Grants Awarded			US Dollar Grants	Japanese Yen Grants
	Media and Dissemination
	16.	KCTS Television - for the first year of support of the project "Japan Connection: A Multi-media Production Center"	75,000
	17.	The Roper Center for Public Opinion Research - for the first year of support of the project "Building an On-Line Public Opinion Information System for Survey Data from Japan"	48,736
TOTAL FOR PUBLIC AFFAIRS/EDUCATION			$530,079	¥9,780,000

Grants Awarded			US Dollar Grants	Japanese Yen Grants
E.	THE ARTS
	1.	Exchange Fellowships for Creative Artists - Jointly-sponsored program funded by the Japan-United States Friendship Commission and the US National Endowment for the Arts. The funds devoted to this program include $75,000 received from the National Endow-ment for the Arts. Grant funds for the artists in FY 1997 are administered in Japan for the Commission by the International House of Japan, Inc. Yen funds are provided for the ensuing program year. Artists sponsored under the exchange fellowships: Beliz Brother Craig McTurk Yoji Yamaguchi	14,803	14,790,000
	American Performances/Exhibitions in Japan
	2.	Goh Productions - for support of the collaborative performing arts project "The Poe Project"	30,000
	3.	Walker Art Center - for support of the collaborative performing arts project "Unfinished Symphony"	20,000

Grants Awarded			US Dollar Grants	Japanese Yen Grants
	Japanese Performances/Exhibitions in the United States
	4.	The Art Institute of Chicago - for publication of a catalogue in conjunction with the exhibition "Japan 2000"	30,000
	5	Hara Museum of Contemporary Art – for publication of a catalogue in conjunction with the exhibition "Shiro Kuramata 1934-1991"	30,000
	6.	Japanese American Cultural & Community Center - for support of the project "Warabi-za Folk Dance and Music Company 1997 US Tour"	7,500
	7.	On The Boards - for support of a US tour by Sakiko Ohshima and the H Art Chaos Company	46,625
	8.	Smithsonian Institution, Arthur M. Sackler Gallery - for support of the exhibition "Paintings by Masami Teraoka" at the Asian Art Museum of San Francisco	10,000
	9.	Smithsonian Institution, National Museum of Natural History - for publication of a cata- logue in conjunction with the exhibit "Kamuy: Spirit of the Ainu - Art, History, and Culture of Japan’s Northern People"	30,000
TOTAL FOR THE ARTS			$218,928	¥14,790,000

Commission Program Totals
	Japanese Studies in the United States	$ 391,898	¥ 70,450,000
	The Study of the United States in Japan	44,531	5,972,860
	Policy-Oriented Research	153,751	0
	Public Affairs/Education	530,079	9,780,000
	The Arts	218,928	14,790,000
TOTAL FOR COMMISSION PROGRAMS		$1,339,187	¥100,992,860

CULCON Activities Funded by Transfer from USIA
	Undergraduate Educational Exchange Oversight Committee	$ 7,380
	Media Working Group	1,950
	Information Access Working Group	4,055
	CULCON XVIII Plenary Session	31,675
TOTAL FOR CULCON ACTIVITIES FUNDED BY TRANSFER FROM USIA		$45,060

Administrative Expenses of the Commission in FY 1997
	Personnel	$303,617
	General Services Administration for Payroll, Accounting and Other Services	34,026
	Office Space	33,622
	Travel	25,333
	Communications	10,787
	Printing, Supplies, Publications	10,520
	Equipment	0
	Other	12,509
TOTAL FOR COMMISSION ADMINISTRATIVE COSTS		$430,414

Administrative Expenses of CULCON in FY 1997
	Personnel	$78,204
	Communications	350
	Supplies	200
	Other	275
TOTAL FOR CULCON ADMINISTRATIVE COSTS		$79,029

Appropriated Dollar Fund Income and Expense Statement Fiscal Year 1997 (10-1-96 through 9-30-97)
	INCOME
		Net Interest (Earned Basis)	$1,190,847
		Refunds on Grants	48,290
		Received from the Department of Education	50,000
		Received from the National Endowment for the Arts	75,000
		Received from the US Information Agency for CULCON support	122,525
		Transfer from Yen Account	220,000
	TOTAL INCOME		$1,706,662
	EXPENSES
		Commission Grants	$1,339,187
		Commission Administration	430,414
		CULCON Activities	45,060
		CULCON Administration	79,029
	TOTAL EXPENSE (GROSS)		$1,893,690
		Japanese Government Gift Fund (Non-Appropriated)	(480,491)
	TOTAL EXPENSE (NET)		$1,413,199
	GAIN OR (LOSS)		$293,463

Japanese Government Gift Fund (non-appropriated) Fiscal Year 1997 (10-1-96 through 9-30-97)
		Balance, 9-30-96	$686,558
		Grants	480,491
		Administrative Expenses	4,971
		Interest Income	10,906
		Refunds on Grants	41,156
	BALANCE, 9-30-97		$253,158

Appropriated Yen Fund Income and Expense Statement Fiscal Year 1997 (10-1-96 through 9-30-97)
	INCOME
		Interest on Japanese Government Bonds	50,889,988
		Refunds on Grants	912,889
		NEA Transfer	8,894,250
		Other Income (Discounts, Unrealized Profits)	¥ 2,895,529
	TOTAL INCOME		¥63,592,656
	EXPENSES
		Grants	¥100,992,860
		Administration	3,308,187
		Transfer to Dollar Account	24,571,800
		Fees	2,231,334
	TOTAL EXPENSE		¥131,104,181
	GAIN OR (LOSS)		(¥67,511,525)

Appropriated Yen Fund Balance
		Original Appropriation Received, 11-1-76	¥3,615,429,455
		Balance Received, 10-22-79	325,683,316
		Fund Balance, 9-30-96	3,538,346,724
		Cash on hand, 9-30-96	1,241,385
		Income or (loss)	(67,511,525)
	FUND BALANCE, 9-30-97		¥3,472,076,584

NOTE: In the listings below, in many cases Commission support met only partial costs of the total project.

Grants Awarded in Fiscal Year 1998

October 1, 1997 - September 30, 1998

Grants Awarded					U.S. Dollar Grants	Japanese Yen Grants
A.	JAPANESE STUDIES IN AMERICAN EDUCATION
	Faculty and Curriculum Development
	1.	Association of American Colleges & Universities - for support of the project "1999 Faculty and Curriculum Development Seminar on Japan		108,650
	Language
	2.		Stanford University, for the Inter-University Center for Japanese Language Studies in Yokohama - for advanced Japanese language training for American graduate students			40,400,000
	Libraries
	3.		National Coordinating Committee on Japanese Library Resources - for continuation and expansion of activities, and support of the National Program for Coordinated Japanese Library Acquisitions of Multi-Volume Sets and External User Services for 1998-1999			16,899,200

Grants Awarded			U.S. Dollar Grants	Japanese Yen Grants
	Professional Studies
	4.	Committee on Japanese Economic Studies -for support of a program to train specialists on the Japanese economy	22,050	3,750,000
	Research
	5.	Association for Asian Studies, Northeast Asia Council - for the various programs the Council undertakes to promote the teaching and study of Japan in the United States	52,440	3,600,000
	6.	Social Science Research Council - for fellowship and administrative support for advanced research on Japan by American scholars	80,000	6,000,000
	7.	University of California, San Diego – for the participation of Andrew Dewit, Yumiko Iida, Yumiko Mikanagi, and Katsuo Seiki in the project entitled "Competing Modernities in 20^th Century Japan Part II: Empires, Cultures, Identities, 1930-1960"	8,927
	Other
	8.	Columbia University, The Donald Keene Center of Japanese Culture – for support of the project "The Japan-US Friendship Commission Prize for the Translation of Japanese Literature"		2,359,000

Grants Awarded

U.S. Dollar Grants

Japanese Yen Grants

Association of Teachers of Japanese – for Year Two of the project "Development of the Bridging Project Clearinghouse to Encourage Study Abroad in Japan by American Undergraduate Students"

10,875,900

TOTAL FOR JAPANESE STUDIES

$272,067

¥83,884,100

Grants Awarded Japanese Yen Grants
B.	THE STUDY OF THE UNITED STATES IN JAPANESE EDUCATION
	Faculty and Curriculum Development
	1.	American Studies Association – for support of a third and final year of the project "Japan-United States Dialogues Across the Pacific: Curriculum, Program, and Faculty Development for an International American Studies"	7,000	1,112,000
	2.	Organization of American Historians – for a second year of the project "Short-term Residencies in Japan for US Historians"	7,225	1,465,500
	Other
	3.	American Studies Society of the University of the Ryukyus – for the participation of Drs. Barbara J. Fields and Winston James in the 19^th annual meeting in Naha	6,500
TOTAL FOR THE STUDY OF THE UNITED STATES IN JAPANESE EDUCATION			$20,725	¥2,577,500

Grants Awarded				U.S. Dollar Grants	Japanese Yen Grants
C.	POLICY-ORIENTED RESEARCH
		1.	Council on Foreign Relations – for support of the project "A Study Group on the US-Japan Trade Relationship"	50,000
		2.	Japan Information Access Project – for support of the project "Intellectual Property: Japan and the New Asia, A Dissemination Strategy"	39,447
		3.	National Bureau of Asian Research – for support of the project "The Development of Government Disclosure Systems in Japan"		6,225,080
		4.	Pacific Forum CSIS – for support of the third year of a three-year project "Coop-eration Among Japan, China, and the US on Security in East Asia"	15,000
		5.	Purdue University – for support of the project "Japanese Competition Policy and Market Access, In Comparison with Germany and the United States"	69,800
		6.	Research Institute for Peace and Security – For support of the project "Strategic Studies Fellowship Program"		1,242,000
		7.	The East-West Center – for support of the project "Power and Prosperity: The Security-Economics Nexus in US-Japanese Relations Since 1960"	53,493

Grants Awarded

U.S. Dollar Grants

Japanese Yen Grants

University of Georgia Research

Foundation – for the project "Nonprolifera-

Tion Export Controls: Japan, China, and the United States

3,100,000

TOTAL FOR POLICY-ORIENTED

RESEARCH

$227,740

¥10,567,080

Grants Awarded			U.S. Dollar Grants	Japanese Yen Grants
D.	PUBLIC AFFAIRS/EDUCATION
	Outreach Programs
	1.	Japan America Society of Central Ohio – for the first year of administrative support	27,750
	2.	Japan America Society of Greater Philadelphia – for the third and final year of administrative support	30,000
	3.	Japan America Society of Nevada – for the third and final year of administrative support	30,000
	4.	Japan America Society of New Mexico – for the second year of administrative support	30,000
	5.	Japan America Society of San Diego - for the second year of administrative support	30,000
	6.	Japan America Society, Ithaca Area - for the third and final year of administrative support	15,000
	7.	Japan America Society of the State of Washington - for the third and final year of support for the project "US-Japan Links"	30,000
	8.	Japan America Society of the State of Washington – for support of an electronic version of "On The Record," the CULCON media directory of Japan specialists on the US-Japan Links site.	4,475
	9.	Japan America Society of Washington, DC - for support of the project "Civil Society in Japan: Coping with Change"	15,500

Grants Awarded			U.S. Dollar Grants	Japanese Yen Grants
	10.	National Association of Japan America Societies, Inc. - for support of the project "Transforming the National Association into a Proactive Educational Network"	37,700
	11.	National Association of Japan America Societies, Inc. - for support of the project "Designing an Integrative Framework to Support the Work of Japan America Societies in the US"	16,500
	Counterpart Exchanges
	12.	American Association for the Advancement of Science - for support of the project "Diet-Congress Program of Legislative Exchange on Science and Technology"		11,742,200
	13.	Congressional Economic Leadership Institute - for support of the 1997 US-Japan Educational Exchange Program	97,800	8,510,000
	14.	The George Washington University - for support of the project "GWU US-Japan Economic Agenda 1998 Legislative Exchange Program"	69,725	1,280,000
	15.	International House of Japan, Inc - for services for American educational, cultural and professional institutions		8,500,000
	16.	US Association of Former Members of Congress – for support of the project "Congressional Study Group on Japan"	30,015

Grants Awarded			U.S. Dollar Grants	Japanese Yen Grants
	Media and Dissemination
	17.	Film Arts Foundation - for post-production costs of the film "Masami Teraoka: Between East and West"	15,000
	18.	Japan Society, Inc. - for support of the project "ANIME: The World of Japanese Animation"	10,000
	19.	KCTS Television - for the second year of support of the project "Japan Connection: A Multi-media Production Center"		9,600,000
	20.	The Roper Center for Public Opinion Research - for the second year of support of the project "Building an On-line Public Opinion Information System for Survey Data from Japan"	69,928
TOTAL FOR PUBLIC AFFAIRS/EDUCATION			$559,393	¥39,632,200

Grants Awarded			U.S. Dollar Grants		Japanese Yen Grants
E.	THE ARTS
	1.	Exchange Fellowships for Creative Artists - Jointly sponsored program funded by the Japan-United States Friendship Commission and the US National Endowment for the Arts. The funds devoted to this program include $75,000 received from the National Endow- ment for the Arts. Grant funds for the artists in FY 1998 are administered in Japan for the Commission by the International House of Japan, Inc. Yen funds are provided for the ensuing program year. Artists sponsored under the exchange fellowships: David Stuempfle Sally Gross Pamela Z Beliz Brother* *This artist, selected for the 1997 program, received the majority of funding in the 1997 year. A small grant was made to her in 1998 for the purchase of Japanese language texts.		10,795		21,090,000
	American Performances/Exhibitions in Japan
	2.	AN Creative, Inc. – for the project "US-Japanese Dance Collaboration"				4,000,000
	3.	Institute of Dramatic Arts (DARTS) – for the project "1998 SILENCE Japan Tour"		30,000

Grants Awarded				U.S. Dollar Grants			Japanese Yen Grants
	4.	Japanese American Cultural & Community Center – for the first year of support of the project "US Arts Export to Japan"						5,120,000
	5.	Museum of Contemporary Art – for support of a Japan tour of the exhibition "Out of Actions: Between Performance and the Object 1949-1979"			30,000
	6.	Ping Chong and Company – for support of a three-week residency and presentation of "KWAIDAN" in Fukuno			49,400
	Other
	7.		Atlantic Center for the Arts, Inc. – for support of the project "Japan/US International Residency Exchange" at Akiyoshidai						1,280,000
	8.		CEC International Partners, Inc. - for the screening and review of 1998 applications to the US/Japan Creatiave Artists Fellowship Program			2,182
	9.		World Shakuhachi Festival 1998 – for support of the World Shakuhachi Festival 1998 Japanese Scholars Program						546,750
TOTAL FOR THE ARTS						$122,377			¥32,036,750

Commission Program Totals		U.S. Dollar Expenses		Japanese Yen Expenses
	Japanese Studies in the United States		$272,067		¥83,884,100
	The Study of the United States in Japan		20,725		2,577,500
	Policy-Oriented Research		227,740		10,567,080
	Public Affairs/Education		559,393		39,632,200
	The Arts		122,377		32,036,750
TOTAL				$1,202,302	¥168,697,630

CULCON Activities Funded by Transfer from USIA			U.S. Dollar Expenses
	1.	Undergraduate Educational Exchange Oversight Committee	250
	2.	Media Working Group	2,000
	3.	Information Access Working Group	7,820
	4.	Fundraising	40,000
TOTAL FOR CULCON ACTIVITIES FUNDED BY TRANSFER FROM USIA			$50,070

Administrative Expenses of the Commission in FY 1998
	Personnel	317,954
	General Services Administration for Payroll, Accounting and Other Services	33,839
	Office Space	33,557
	Travel	20,428
	Communications	12,228
	Printing, Supplies, Publications	7,474
	Equipment	5,767
	Other	32,488
TOTAL FOR COMMISSION ADMINISTRATIVE COSTS		$463,735

Fundraising Expenses of the Commission in FY 1998
	Travel	2,270
	Communications	1,641
	Consulatant’s Fee	35,000
TOTAL FOR COMMISSION ADMINISTRATIVE COSTS		$38,911

Administrative Expenses of CULCON in FY 1998
	Personnel	87,429
	Communications	275
	Supplies	200
	Other	250
TOTAL FOR CULCON ADMINISTRATIVE COSTS		88,154

Appropriated Dollar Fund Income and Expense Statement Fiscal Year 1998 (10-1-97 through 9-30-98)
	INCOME
		Net Interest (Earned Basis)	$1,077,902
		Refunds on Grants	112,210
		Received from the Department of Education	50,000
		Received from the National Endowment for the Arts	75,000
		Received from the US Information Agency for CULCON support	138,719
		Transfer from Yen Account	320,000
	TOTAL INCOME		1,773,831
	EXPENSES
		Commission Grants	1,202,302
		Commission Administration and Fundraising Activities	502,646
		CULCON Activities	10,070
		CULCON Administration	88,154
	TOTAL EXPENSE (GROSS)		1,803,172
		Japanese Government Gift Fund (Non-Appropriated)	(253,750)
	TOTAL EXPENSE (NET)		1,549,422
	GAIN OR (LOSS)		224,409

Bridging Project Gift Fund (non-appropriated) Fiscal Year 1998 (10-1-97 through 9-30-98)
		Balance, 9-30-97	$0
		Contributions*	$112,600
		Grants	$0
		Administrative Expenses	$0
		Interest	$14
	BALANCE, 9-30-98		$112,614

* includes $100,000 worth of stocks

Appropriated Yen Fund Income and Expense Statement Fiscal Year 1998 (10-1-97 through 9-30-98)
	INCOME
		Interest on Trust Fund	¥44,336,845
		Refunds on Grants	612,106
		Discounts and Unrealized Profits	92,991
	TOTAL INCOME		¥45,041,942
	EXPENSES
		Grants	¥168,697,630
		Administration	4,549,994
		Transfer to Dollar Account	41,420,800
		Fees	6,581,268
	TOTAL EXPENSE		¥221,249,692
	GAIN OR (LOSS)		(¥176,207,750)

Appropriated Dollar Fund Balance

Original Appropriation, 1-1-76

$18,000,000

Fund Balance, 9-30-96

Cash on hand, 9-30-96

Income or (loss)

FUND BALANCE, 9-30-97

$15,312,866