Kanazawa--beautiful city on the Sea of Japan

bullet train

Bullet trains just started running between Tokyo, near the Pacific Ocean, and Kanazawa, across Honshu Island on the Sea of Japan.  In the morning and evening the express trains run, but we took a midday bullet train that stopped in a dozen cities along the way.  Even so, it only took 3 hours, passing through endless tunnels and across high bridges as we went through the mountains literally from sea to sea.  The high mountains are covered in snow and even many of the towns and villages have a surprising amount of snow for mid-April.

When the bullet trains slide into a destination station like Tokyo or Kanazawa, an array of cleaners waits at attention next to the doors of each car. 

train cleaners

They quickly replace all the head protectors with clean cloth, wipe down the seats and tables and vacuum the entire car.  All this takes about 8 minutes because, in Japan, the trains run precisely on time.  Next the cleaners hop out at each door and again stand at attention until the doors open for the orderly lines of passengers waiting to get on.

samurai soldier

Kanazawa is a city of about 500,000 people which, fortunately, was not bombed heavily during World War II.  Its old samurai section lines the narrow canals of the old part of the city.  The shogun did not live in Kanazawa, but kept a close watch on the feudal lords who ruled the area.  To keep them from rising up against him, the shogun always required the wives and oldest sons of the various feudal lords to live in the capital near him as hostages of sorts.

These lords always feared for their lives.  In Kanazawa, we visited the Ninja Temple, a large Buddhist temple that had rather extraordinary protections and escape routes for the warlord.  These included secret rooms and stairways, hidden doors, trap doors that could send an invader plunging to a small room below, where soldiers waited to kill him, paper panels that hid other soldiers and let them watch for shadows of enemies entering the space and spear them in the feet, and 7 levels of rooms on 4 floors in a building that looks like it is only 2 stories from the outside.  None of these devices was ever needed, but were a source of comfort to the warlord.

untended graves

Nearby, we walked through s small cemetery.  There were many old gravestones neatly arranged against 2 sides of the cemetery.  These were from graves where families had died out so had no one to care for them anymore.  The stones were brought here so that the cemetery caretaker could tend them.

garden at samurai house

 

One samurai house is particularly notable, as it is large, beautifully built around a lovely small garden and very well-preserved.  The large rooms are all covered with tatami mats, as are most Japanese homes even today, where the family would gather to sit on the floor and sleep on futons placed on the floor. 

alcove in samurai house

Consequently, these were multi-purpose rooms.  In the cold winters, families would congregate around a fire in an urn placed below the floor level.  This was the only heat and would rise enough to warm the second floor rooms as well (though I can’t imagine it did much to keep people toasty).

Our ryokan was very traditional, so we slept on futons on the floor.  During the day, the futons and down comforters are put away in a closet and the room has a low table on the tatami matted floor with 2 chairs, seats flat on the floor, for sitting.  Fortunately for us, the ryokans also have an alcove with 2 higher chairs and a small table since sitting on the floor can be a bit hard on unaccustomed joints.  Each room has a small alcove that holds a flower arrangement and a scroll.  In family homes, this will usually be a shrine, often with an altar.  This ryokan also has one of Japan’s best restaurants for kaiseki cuisine and we enjoyed a superb meal at the inn.

 

 

 

Kanazawa's famous Kenrokuen Garden in spring

cherry blossoms over stream--Kenrokuen Garden

One of Japan’s 3 most famous gardens is in Kanazawa, the Kenrokuen Garden.  It spans 25 acres, with hundreds of trees, including dozens of pines and cherry trees, blooming shrubs and flowers, and several lakes.  It is a treasure.

pine tree growing over pond

The garden is meticulously maintained.  Ladders lean high against the tallest pine trees where pruners carefully cut off any needle or clump of needles that hangs down towards the ground, so that all the needles point to the sky.  In the fall, when we were last here, the lower trunks of the trees were wrapped with reed sheets.  When it gets really cold, the insects that damage the trees move towards the ground where it is warmer.  They winter over in the reed matting, which is removed and burned in the spring before the bugs have time to reproduce.

carefully tended roots of large pine tree

Large branches of the pine trees are supported by posts so that they don’t break during the heavy winter snows that have just melted in Kanazawa.  Some pines are trained out over the lakes with their huge, curving branches held up over the water by posts.  This is gardening with precision and high artistry.

white cherry blossoms

cherry blossoms in stream

The cherry trees are blooming beautifully right now.  There are over 400 kinds of cherry trees, with many varieties in Kenrokuen so that the flowers come at slightly different times and fill the sky with pink and white blossoms.  There is a dusting of blossoms from the earlier bloomers covering the ground and edges of the ponds like pink snowflakes.

water fall and small shrine

Water to feed the lakes and fountains comes from the surrounding mountains.  As a result, the fountains are gravity-fed—the water in the fountain gushes as high as the lake that feeds it.

weeping cherry tree

 

Since it’s spring, thousands of visitors fill the garden, taking selfies in front of the gorgeous cherry trees and enjoying the beauty of Kenrokuen.  Now that there is a bullet train from Tokyo to Kanazawa, there are likely to be many more visitors from Tokyo (a metropolis of about 13 million people), even those who come just for the day.

 

 

 

A Morning in Ginza

 

one of Ginza's more unique buildings

We started the day with a visit to the huge Tsukiji Fish Market, only to find that it is closed on Wednesdays.  There were a couple of fishmongers there, but not the thousands you usually seem slicing, washing and selling fish in the midst of frenzied activity.

Tsukiji fishmonger with fish heads

The Ginza is one of Tokyo's best-known shopping areas, with nearly every luxury brand in the world represented.  It also has some of Tokyo's most unusual buildings, designed by leading Japanese architects.

We arrived at one of Ginza's most prestigious department stores in time for its opening to watch the formal process of welcoming shoppers.  Dozens of people were lined up outside waiting to get in at the exact moment of opening.  Two clerks opened the doors, bowed to the crowd several times and stood at attention until exactly 10:30.  Meanwhile, no one tried to barge in through the open doors.  Everyone waited politely until they were told they could enter.  The day's special sales were announced on a loudspeaker as the crowd waited.

Department store greeter

Once inside, the part of the store I like best is the basement, with its 2 floors of gorgeously displayed gourmet foods, ranging from gaudy cakes to chocolates to Kobe beef to fresh fish to many kinds of breads to absolutely perfect fruits and vegetables.  You can buy a melon, wrapped individually in a spongy netting to protect it from the weight of the other melons, at $50 per melon or $200 per melon.  Or a tray of ripe, red strawberries for $40.  One mango can cost $200 as well.  We bought a sale package of strawberries to share with our group, each individually situated inside the tray, for $10 (I'm sure they were that cheap because they would have been over the hill--with maybe a soft spot or two--by the end of the day).

Beef costs from $50 to hundreds of dollars per pound, depending on its marbling and origin.  Wisps of bacon are thinner than a piece of paper.  There is no such thing as a Costco-sized rib roast or package of steaks.  Every piece is individually packaged and very small.

You're not allowed to take photos for some reason no one could explain, but I sneaked in a couple just to show the beauty of Japanese food artistry.

display of fresh fish

 

Kobe beef, ranging from $40 to $200 per pound

 

$60 melons

 

$200 mangoes (each)

beautiful tomatoes that actually have wonderful flavor

 

 

 

Legal complications in Japan

view of downtown Tokyo

We spent several hours with a group of Western lawyers in Tokyo yesterday, learning how the legal system works and the complexities of being a non-Japanese lawyer in Japan.

Basically, non-Japanese lawyers can only advise on foreign laws, not argue cases in Japanese courts.  Western firms could not hire Japanese lawyers until about a decade ago when they were allowed to form joint ventures with Japanese firms.  But, they still had to bill clients separately, have separate letterheads and other nuisances.  Now, Western firms are allowed to form joint ventures which enable them to employ Japanese attorneys, use their own names, with a Japanese addition tacked on to the end, bill jointly and practice Japanese (Japanese lawyers only) and foreign law.

Foreign lawyers must have practiced in their home jurisdictions for at least 3 years before they can be registered in Japan.  They can't become partners without being registered.  There are quite a few lawyers who have lived in Japan their entire lives so have not practiced in their "home" jurisdictions and therefore cannot really practice law or become partners.  They act as advisors to registered lawyers.  But, they can't really attend meetings with clients.  A bit of a problem.  To get registered requires a lot of time (8 or 9 months) and paperwork.  Plus, if you're a foreign lawyer, you pay a monthly fee of about $600 for the privilege of being registered.

Only a Japanese qualified attorney can advise on Japanese law or argue in court.  Japan is a civil law country, not a common law country, so precedent carries no weight.  The legal code is based on German law, but has morphed over the years to be unique to Japan.

Disputes involving arbitration are usually resolved in Singapore, particularly if the dispute is with a company from a country with a weak legal system.  Japanese companies hate litigation.  Their preference is to sit down and work out a dispute.  Their contracts, if they have them at all, are very short--only a few pages--compared to the massive documents that American firms require to do a deal.  Japanese firms don't care about contracts because they believe they can and should resolve disputes among the participants, not in court.

Court cases are very short, usually only a few hours.  Jury trials are uncommon and have only been used for the last few years in civil cases.

Japanese companies are weak negotiators regarding the choice of law that will govern any lawsuit or arbitration.  There is no discovery in a lawsuit--you really have to know what documents an adversary has that you might want in order to request them.  Judges tend to grill witnesses in court.  Most arguments are made via documents, not oral arguments.  And, there is no easy way to prove your case since you don't have depositions or documents you don't know about. 

The vast majority of Japanese companies act in good faith.  If you just go talk to them about a problem, they will generally respond reasonably.  They value good relationships and resolving disputes informally.

Becoming a lawyer in Japan is difficult.  It's more prestigious to work in a private law firm than be an inside counsel to a company.  But, being a judge is most prestigious.  Judges aren't selected from the ranks of practicing lawyers.  Becoming a judge is a separate track in law school.  Judges get rotated every three years and can be moved long distances, obviously a hardship for their families.  Being a judge is a big status job, but not a "big pay" job.  Usually panels of judges hear cases.

There is a specific appellate court for intellectual property.  Cases go there from either the district court or the Patent Office.  Judges don't grant preliminary injunctions lightly--it usually takes 8 or 9 months to get one, by which time a lot of damage can be done to a company's IP.  Even more reason to try to work things out informally.

The system reflects the critical Japanese value of harmony.

Fukushima (big problem) and TPP (big opportunity)

view across Hama-Rikyu Garden to one of Tokyo's newer business districts

Japan has done a very good job of cleaning up after the terrible tsunami that hit Fukushima following the massive 2011 earthquake, but that is just the rubble.  The nuclear reactor is still extremely dangerous and may always be. 

The expectation is that it will take 40 years to decommission the nuclear plant.  All the water is contaminated--rain, run-off, water inside the plant.  Every drop that passes through the air and ground is radioactive.  The company that owns Fukushima has built huge containment tanks to hold the contaminated water, but at some point even they won't be enough.  Some companies, particularly U.S. environmental companies, see this as a great opportunity--helping to clean up and decommission the plant.

The entire area of Fukushima and about 20 miles on all sides is still closed. Former residents were initially housed in temporary housing, but most have scattered, seeking homes and jobs elsewhere in Japan.  Some, however, still have nowhere to go and live in the very temporary homes provided by the government right after the tsunami.

Nuclear power used to provide 25% of Japan's energy, but today every one of its 48 nuclear plants is still shut down.  PM Abe wants to restart some of the plants that have been retrofitted with new safety equipment, but the public is very leery.  Just today, a judge prohibited reopening one nuclear plant in an area that was the center of the nuclear power industry.  The cost of energy is up 20% from 2011, further exacerbating Japan's economic problems.

That is the huge problem side of the economy (one of the huge problems).  On the positive side, if it finally comes to fruition and, particularly, if Congress approves the treaty, is the Trans Pacific Partnership.  For Japan, this would require opening some heavily protected sectors, like agriculture.  But, this is what the PM wants to do anyway, so the treaty would help him accomplish that.

TPP has been under negotiation for 4 years.  It includes countries such as Chile, Peru, Canada, Mexico, New Zealand, Australia, Vietnam, Singapore, Japan, Brunei and the U.S.  There haven't been lots of trade agreements that set the ground rules for international trade.  TPP is designed to do that.  The U.S. wants trade to operate under our rules, not China's rules.  The participating countries want the same thing.

Smaller countries are worried about China, not in the sense of being anti-China, but because of its muscle-flexing in the region.  Like-minded countries want to set the trade rules for the region, eventually forcing China to comply in order to participate.  The relationships with China are productive, but complicated.

Japan used to be the big guy in Asia, but not now, which is why they joined TPP.  This agreement is key to Japan's managing its relationship with China.

With Russia, Japan works hard to maintain a good relationship.  They want the northernmost Japanese islands Russia seized after World War II to be returned to Japan, primarily because of potential energy and fishery development, not to mention national pride.  Russia is also a very important supplier of energy to Japan, particularly since the shutdown of the nuclear plants.  They don't like Russia's behavior in the world and have joined in sanctions against Russia, but hope this will not be permanent.

Abenomics, demographics and economics in Japan

Sake barrels outside the Meiji Shrine--a key business in Japan

Japan, formerly the world's second largest economy after the U.S., has slipped to 3rd in the world, behind China and just ahead of Germany.  It faces the real prospect of falling farther down the economic ladder as its economy continues to stagnate.

Prime Minister Abe has vowed to reverse that decline and recently won a national election that upheld his economic policies.  Just having that certainty of political continuity after years of rapid changes in the political leadership gives Japanese hope that they can turn around their economy.

The decline began in the early 1990's when their real estate bubble burst.  Since then, Japan has had an extended period of deflation--the longest in recorded world history.  Meanwhile, the yen has fallen from 76 to the dollar in 2011 to 120 to the dollar today.  To fight this, Abe has set a goal of 2% inflation based on a 3 pronged policy.  He calls this the 3 arrows (1 arrow can easily be broken, but 3 arrows held together are impossible to snap). 

First is fiscal stimulus, much like the U.S. implemented after our own real estate bubble burst.  Infrastructure projects, social programs and medical care have been key investments.  Next is monetary easing, similar to the Fed's quantitative easing, implemented by having the central bank purchase government bonds.  Third is regulatory reform, which has long been needed.

For example, the agricultural sector is highly protected in Japan.  The rice tariff alone is 700%, making it impossible to import rice and keeping domestic rice prices very high.  The government spends more on agricultural assistance than the entire sector actually produces.  50% of a farmer's income comes from the government.  Farm plots are small and often isolated, so one of Abe's reforms is to enable consolidation, letting small, unproductive farmers go out of business and enabling larger, more successful farms to buy their land.  Right now, driving through the countryside, you can see tiny fields, each belonging to a different farmer.

A second area of regulatory reform is referred to as "womenomics".  This is a complicated story and one heavily tied to cultural norms and restrictions.  Japan is very averse to immigration, but its population is in freefall, now past the point of no return (if that is ever inevitable).  The population is both shrinking and aging so that, but 2050, Japan expects to have only 1 worker to support each retiree, down from 2.5 today.  That is obviously untenable.  But, Japan doesn't even fully employ its existing population because women are discouraged, in many ways, from working.

The glass ceiling in Japan is low and virtually impermeable.  PM Abe is talking up reforms that encourage women to enter and stay in the workforce.  It remains to be seen if this, in fact, will happen.  His stated goals include passing legislation requiring that 30% of management positions be held by women by 2020, supporting increased child care options which are now very limited and heavily regulated (child care centers, for example, must have a registered nurse on staff), and enforcing laws that prohibit harrassment of women in the work place.  More on this in a later blog.

In Japan's work culture, men still work very long hours.  If the boss is still at work, you have to stay also.  This is beginning to change as younger men object, but clearly makes worklife difficult for women with children.

Demographics is Japan's greatest economic problem.  There are more people over 65 than under 15.  By 2050, 40% of the population will be over 65.  Right now, retirement age is 60.  That will soon go to 65.  Under Japan's very limited immigration policy, guest workers can come into the country to work for several years, but must go home at the end of that period.  Women are getting married later, now at the average age of 28, and refusing to have many children.  Clearly, this is one area of huge economic risk that Japan is only beginning to deal with.

Japan in the world today

East Garden of the Imperial Palace

Today was our "business" day, which we started with a visit to the U.S. Embassy.  We have always found that our foreign service officers in the U.S. embassies and consulates around the world are great sources of information about the countries we visit.  The 2 officials we met with today were no exception and provided us with an excellent briefing on Japan's economy, politics and role in the world.

This year, Japan celebrates the 70th anniversary of the end of World War II, which is a big deal to them.  In that 70 years, they have gone from being our formidable enemy to one of our closest allies, a "remarkable transformation".  Japan has become a global partner, working closely with the U.S. around the world.

They have made a big humanitarian contribution in the Middle East in the fight against IS and paid a big price when IS murdered 2 Japanese citizens, citing Japan's donation of $200 million in humanitarian aid to the region.  Japan puts a huge premium on protecting their citizens abroad and has made this an important facet of their foreign policy.  Prime Minister Abe sees IS as a threat not only to Japanese citizens in the Middle East, but also to Japanese values.  IS is abhorrent to him and he wants to help defeat it by providing development aid to the region.  Japan is the second largest contributor to Afghanistan, for example, after the United States.  To put this in some perspective, Japan's economy is about 5 times larger than that of South Korea, but while S. Korea has given $10 million in aid in the Middle East, Japan has committed $200 million.

Relations between China and Japan have been difficult, as have relations between China and smaller Asian countries such as Vietnam, Indonesia and the Philippines.  None of them like China's expansion of power in the region, particularly in the South China Sea (or East Ocean as it is known here).  This is why Japan is strongly behind the Trans Pacific Partnership (TPP), the major free trade treaty the U.S. is negotiating with Pacific Rim nations.

Japan used to be N. Korea's second largest export market after China, but Japan closed its market to the North Koreans after that country's first nuclear test in 2006.  In addition, Japan is very frustrated about the North Korean kidnappings of their citizens in the 1950's, which North Korea refuses to acknowledge (and, obviously, for those kidnap victims still alive, refuses to return to Japan).

In Africa, Japan is increasingly active.  They see development assistance as a primary means of influence on that continent.  They also see 54 votes in the United Nations, critical to Japan's goal of becoming a permanent member of the U.N. Security Council.  They provide some counter to China's growing influence in the region. 

Their investments are very different from China's.  Forty percent of Japan's investments in Africa are in infrastructure, which provides more durable and higher quality projects than those financed by China.  Equally important, Japan hires local Africans to build the projects (roads, ports, water systems, hospitals, energy development), while China brings in Chinese to do the labor.  They have become the beneficiaries of China's hard push/hard sell approach to international aid and to the poor quality and negative environmental impacts of Chinese investments.

More on Japan's economy in my next blog.