1995-1996 Biennial Report

Japan-United States Friendship Commission 1995-1996 Biennial Report

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 1995 and 1996.

This year marks the end of my first year as Chairman of the Japan-US Friendship Commission. Early in my term I had the opportunity to meet many of the important players in the Commission’s fortunes, both inside and outside the government, and I was impressed by the deep level of support for its activities that I have found. Subsequently, the commissioners and I reviewed the entire range of Commission priorities, programs and activities at both the Spring and Fall, 1996 meetings. We have published our conclusions in the November, 1996 edition of the Commission’s Program Guidelines. Over the course of this process I have come to appreciate the spirit of collegiality that marks the commissioners’ interactions. I value that spirit above all.

The historically low return on investments in Japan has greatly affected the operations of all agencies and organizations that work in US-Japan exchange. The Commission is no exception. It faces an era of significantly diminished resources, a situation that inevitably affects grant-making abilities and program priorities.

One option has been to look increasingly to cost-sharing with other agencies on large-scale projects. Another response by the Commission has been to help organize informal consultations among the major funding agencies of US-Japan exchange, to promote better coordination and co-operation. Nonetheless, the situation remains grave.

In light of this, while maintaining a presence in all its traditional areas of activity, the Commission has chosen to concentrate its efforts in the areas of policy-oriented research and its effective dissemination, of greater attention to Japan in the US media, especially broadcasting, and to a new category called “infrastructure building.” Potential applicants are urged to consult with the Commission staff for information on priorities in Commission support for policy-oriented research and on its other programs.

In the vital area of Japanese studies, the Commission will continue to look for projects of national scope that help to open new opportunities for research and exchange, especially for areas such as undergraduate study for American students in Japan. In particular, the Commission will continue to look favorably on those organizations that serve to “retail” Commission funds by crafting grants for individual research projects in Japanese studies through peer review committees.

An area of great interest to me is the Commission’s leadership of CULCON, a USIA-sponsored bilateral forum to review educational and cultural relations between the United States and Japan. Under a CULCON initiative, the two countries have planned ways of increasing the number of American undergraduates studying in Japan. Under this plan, Japanese national universities have steadily been building new junior year-abroad programs in English for American students from a variety of backgrounds. For our part, we have begun the process of establishing a national clearinghouse of information, orientation and facilitative services to address the several obstacles that continue to impede greater flows to Japan, and to recruit students for these new programs. More recently, CULCON has established an initiative to increase access to information in the public domain in Japan through a variety of means, particularly through increased use of the Internet. I look forward to reporting more to you on these efforts in the future.

With a permanent staff of only four, the Commission remains one of the smallest and most cost-effective independent agencies in the federal bureaucracy. Its purpose is to prepare Americans to deal effectively with the challenges we face in the Asia Pacific region in the 21st century. Through this work, it offers the possibility of strengthening true friendship between the United States and Japan, based on tested and accurate knowledge of each other, devoid of stereotypes, as the most important goal toward which we should aim. I am pleased to have the opportunity to provide leadership in its quest for that goal.

Richard J. Wood
Chairman
January, 1997

The Japan-United States Friendship Commission, 1995-1996

Chairman:

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

Vice-Chairman:

Mr. Glen S. Fukushima* **
Vice President, International Affairs
AT&T Japan, Ltd., Tokyo

Members:

Hon. Jane Alexander
Chairman, National Endowment for the Arts

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

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

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

Mr. David I. Hitchcock* **
Senior Associate
Center for Strategic and International Studies

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

Hon. David Longanecker**
Assistant Secretary of Education for Post-Secondary Education

Hon. Winston P. Lord**
Assistant Secretary of State for East Asian and Pacific Affairs

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

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

Mr. Ira Wolf**
Director, Japan Relations and Vice President
Eastman Kodak Asia-Pacific Ltd.

Hon. Robert Wise
United States House of Representatives

Staff:

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

Head Office:

1120 Vermont Avenue, NW, Suite 925
Washington, DC 20005
Telephone: (202) 275-7712
Facsimile: (202) 275-7413
e-mail: jusfc@compuserve.com
or jusfc@dgs.dgsys.com
Homepage: www2.dgsys.com/~jusfc/commissn/commissn.html

Japan Liaison Office:

c/o Program Office
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 1995-96

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 nineteenth and twentieth years of operations covering the period from October 1, 1994 to September 30, 1996, which corresponds to the Federal Fiscal Years 1995 and 1996.

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. Although governmental, the Commission operates much like a private foundation.

In passing the Japan-United States Friendship Act (PL 94-118) in 1975, the 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.

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, and particularly the United States, 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.

In the past several years the Commission has placed greater emphasis on research that will focus on the problems in the contemporary relationship and suggest new and more effective ways of managing them. The Commission today has a renewed 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.

The Commission is under no illusion that its efforts alone will eliminate all problems and misperceptions. It does believe that as a principal source of American funds for educational and cultural exchanges, research and public affairs activities with Japan, its programs have a catalytic effect on activities of many kinds that can lead to mutual understanding and cooperation.

Program Highlights
1. Japanese Studies in the United States

In Japanese studies the Commission provided its largest single grants in FYs 1995 and 1996 to the Inter-University Center for Japanese Language Studies in Yokohama. Jointly sponsored with the Department of Education, the Japan Foundation and seventeen North American universities, this institution provides advanced language study to forty-eight carefully selected American students from institutions across the United States on a full-time, intensive basis. While in the early years most students planned academic careers in the Japan field, a recent trend is bringing to the Center more young lawyers, economists, engineers, scientists and business managers, who have realized the importance of the Japanese language to their professional interests.

In the field of library support, the Commission has continued and upgraded its support for the National Coordinating Committee for Japanese Library Resources, a permanent body that serves to plan for shared collection development and user access to Japanese-language library materials on a national scale, and to represent in a comprehensive manner the needs of the library community to various funding sources. Since 1992, the Committee has organized an annual program with Commission funds to purchase at least one copy of multivolume sets important to research that otherwise would not be found in US collections because of cost. It has begun the difficult task of planning to convert to machine-readable format the bibliographic records of North American library holdings in the Japanese language – an indispensable tool for planning collection development and user access on a national scale. It currently is directed by a professional director, hired with Commission support to transform its operations from a volunteer basis to a permanent, professional organization.

In addition to these two highly-focused programs of support, the Commission continued to pursue vigorously its two priorities during this period in Japanese studies: support of basic research to maintain the vitality of the field; and support for developing Japan programs in professional graduate schools of engineering, business, journalism and other fields. The Commission made major grants in FYs 1995 and 1996 to the Social Science Research Council, following a long tradition of such grants from its earliest operations, for support of postdoctoral research in and on Japan by established American scholars selected through a national competition. In its most recent years, the Commission’s support to the Council has been aimed at stimulating and supporting research on the modern Japanese political economy. Scholarship on Japan was also furthered through the efforts of the Northeast Asia Council of the Association for Asian Studies, which was awarded grants in FYs 1995 and 1996 to support research, travel, regional seminars and a distinguished lecturer series, especially with a view to the needs of the “isolated” Japan scholar outside the major centers of Japanese studies.

In an effort to remedy critical shortages of Japan specialists in such key areas as economics, journalism and engineering, the Commission worked with major universities to offer fellowships to outstanding graduate students in these fields. In FY 1996, for example, the Commission provided support to the American Society for Engineering Education program for recently-graduated engineering undergraduates to spend nine-month internships in Japan. In a different vein, the Commission provided support in FY 1996 to NAFEO to help establish programs of Japanese studies at member HBCU institutions. Support for these programs will be found in this report under the heading “Professional Studies” and “Other” in Japanese studies and represents a significant commitment on the Commission’s part to drawing Japanese studies into the mainstream of American undergraduate, graduate and professional education.

2. The Study of the United States in Japan

In FYs 1995 and 1996 the Commission provided support to Doshisha University for its library, research and American studies graduate programs. Both grants included funds for a unique effort to bring American graduate students of American studies to Doshisha for further training and development.

In a related effort, the Commission also provided funds in FY 1995 to the Center for American Studies at The University of Tokyo for the development of its American studies library collection and staff.

The Commission continued support to bring Japanese and American scholars into direct contact through seminars and conferences, to help them keep abreast of the most recent trends in their fields. Specifically, it continued a program of support in FY 1995 for a second series of three-year collaborative research projects on the general theme of “Images and Symbols of America” between the American Studies Association of the United States and the Japanese Association of American Studies. In FY 1996, a third series of three-year collaborative research projects between these two entities entitled “Japan-US Dialogues Across the Pacific” was begun to enhance curriculum, program and faculty development of the study of the United States in Japan. The two latter series were outgrowths of a previous project to exchange members of the two associations at each other’s annual meeting. The Commission also provided funds in FY 1995 to The University of the Ryukyus to assist in publishing the proceedings of a three-year project entitled “America and Postwar Okinawa: Fifty Years of Cross-Cultural Contact.” This publication was cited by the National Diet Library as a notable publication of 1995.

The Commission continues to look for guidance and leadership in the study of the United States in Japanese education from Japanese colleagues and friends. In this regard in FY 1996 the Commission funded a comprehensive survey of the field, organized by the International House of Japan, to assess strengths and areas requiring further attention. The Commission continues to seek opportunities to help create channels of communication between the American studies communities in Japan and the United States, and between American studies specialists in Japan and their Japanese counterparts in other disciplines in the humanities and social sciences.

3. Policy-Oriented Research

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 support of policy-oriented research projects. 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. More recently, it has also placed emphasis on issues of social transition in Japan that have implications for the bilateral relationship.

In FYs 1995 and 1996 the heart of the Commission’s support for policy-oriented research lay in its RFP, or “Request for Proposals,” program. Under this program, the Commission designated certain topics for priority in research and advertised its support for this research widely through direct mail, newsletter, the Internet and other means. The Commission set aside sufficient funds to support five such projects per subject over a two-year period. It had begun the program in FY 1994 with the subject of Japanese investment in Asia, when it selected two projects for support, and continued the program in FY 1995 with three more projects on Japanese investment in Asia, namely, Harvard University, The Program on US-Japan Relations, for the project “Japanese Corporate Activities in Asia: Effects on Regional Integration and US-Japan Relations,” University of California, San Diego, “Competing or Complementary Production Networks?”, and University of Washington, “Facing Japanese Competition in Asia: A Political-Economic Analysis.” Culminating this effort, in FY 1996 the Commission supported a conference at the Woodrow Wilson Center in Washington, DC to bring the results of these and several related projects to the attention of the Washington policy community.

Similarly, in FY 1995 the Commission designated a second topic for support – the deregulation and reregulation of the domestic Japanese economy and its implications for US-Japan relations. Under this second RFP, the Commission supported five more research projects in 1995 and 1996, namely, Georgia Institute of Technology, “Deregulating Japan’s Health Care and Pension Systems,” the University of Hawaii and Purdue University, “The Political Economy of Deregulation in Japan,” the University of California, San Diego, “Deregulation and the Japanese Firm,” the University of California, Santa Cruz, “The Context and Rationale for Deregulation in Japan: Real and Financial Implications,” and the University of Washington, “Regulating Electronics.” Once again, the Commission plans to bring the results of these projects to the attention of the Washington policy community through a grant in FY 1996 to the Japan Information Access Project, which will organize a conference in March, 1997 entitled “The Political Economy of Deregulation in Japan: Sectors, Interest Groups and the Prospects for Meaningful Market Liberalization.”

A full record of the Commission’s support for policy-oriented research projects for both FY 1995 and FY 1996 follows in this report.

4. Public Affairs/Education

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 and potential areas of cooperation between the two countries. These projects fall under three major sub-headings: Outreach, Media and Counterpart Exchanges.

As has been the case for several years, the core of the Commission’s outreach program funding was provided to the network of Japan-America societies throughout the country, which the Commission has supported since 1979. This funding has allowed societies in thirty-four American cities to hire professional staff and move from providing primarily social and cultural programming to offering substantive public affairs programs on Japan and on US-Japan issues, as well as providing a link between Japan and geographical regions and minority communities in the United States that historically have had little association with it. Fiscal Years 1995 and 1996 saw a further maturation of this program with a total of eight newly-forming societies receiving administrative support.

In addition to providing administrative support in both fiscal years, the Commission also provided program support Japan-America societies. Specifically, in FY 1996, the Commission supported the Japan-America Society of the State of Washington’s “US-Japan Links,” a project to link Japan-America societies electronically across the United States. The Commission also provided support to the Japan Society of Boston, Inc. in FY 1995 for its project “Critical Issues in Japan and the US: Understanding the Demands of a New Society.” This project allowed American and Japanese experts at four symposia in Boston dealing with subject areas deemed critical to both nations to visit other, smaller societies in New England. In the foreseeable future the Commission will remain committed to assisting societies as a major means of educating the American public on issues facing the US-Japan relationship and of engaging communities that heretofore have not had significant contact with Japan.

The Commission lacks the staff and funding to make a major contribution to the complex and costly field of media. Nevertheless, in FYs 1995 and 1996 it continued to seek opportunities to provide support for media projects that exhibit high quality, good financial prospects and opportunity for broad visibility and impact. Of particular note in FY 1995 was a project with Public Radio International for the weekly business news program “Marketplace: Japan Desk,” and a project with the Film News Now Foundation for its documentary film “Doubles: Japan and America’s Intercultural Children.” During this period, the Commission also provided partial support for documentaries on the lives of Isamu Noguchi, Akira Kurosawa, and Frank Lloyd Wright.

In the future, the Commission will give priority to projects in broadcast media that promote coverage, commentary and sustained analysis of Japan on major news and public affairs programs, both on PBS stations and commercial networks. It will continue to consider requests for the research and development of the treatment of scripts for documentaries and for support for their direct production costs on a case-by-case basis.

In the area of counterpart exchanges, the Commission continued its support for three on-going legislative exchange programs between the United States and Japan. These included: the US-Japan Economic Agenda at George Washington University for its FY 1995 and FY 1996 legislative exchange programs between Diet members and the members of the US Congress; the US Association of Former Members of Congress for its Congressional Study Group on Japan; and the Congressional Economic Leadership Institute’s study tour of Japan by senior congressional staff members. In both fiscal years grants were again made to the International House of Japan to provide support services to American scholars and researchers as needed. Also of interest in this category was a grant in FY 1995 to the National Security Archive to help support “A Public Forum in Japan on Public Access to Official Japanese Records,” a symposium in Tokyo held jointly with the Yomiuri Newspaper on the purposes and operations of the Freedom of Information Act in the United States.

5. The Arts

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 and other current issues.

In FYs 1995 and 1996 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 awards up to five fellowships annually to American artists 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. In FY 1996 the Commission took over the direct administration of this program.

During this period, the Commission was able to help support tours of Japan by significant American artists and art, including second tours of Japan by the Fiji Theater Company and the Bill T. Jones/Arnie Zane Dance Company, and a series of performances and workshops at several sites in Japan by Eiko and Koma in collaboration with Native American musicians. In exchanges from Japan, the Commission was particularly active in supporting US tours by major performance troupes during this period, including the butoh troupes Sankaijuku and Butoh-Sha Tenkei. In addition, the Commission assisted with several major exhibitions of Japanese art in US museums, including a show of Momoyama-period art at the Dallas Museum of Art, and a retrospective show of the postwar avant garde art world of Japan entitled “Scream Against the Sky” in New York and San Francisco. A number of important collaborative projects were supported during this period, including the production of SILENCE by the Milwaukee Repertory Theater and the Institute of Dramatic Arts of Tokyo, the NOH Project by the June Watanabe Company and Japanese artists, and “Strange Nature,” organized by the American Composers Forum for American and Japanese composers and performers.

In view of the new infusion of funds from Japan to bring Japanese art, both visual and performance, to the United States, the Commission will place priority on helping support the exchange of American art to Japan. To begin this process, it made a grant in FY 1995 to the Japanese American Cultural & Community Center of Los Angeles for the “Japan-US Visual Arts Partnership Project” to help organize exhibitions of American visual art for exchange with museums in Japanese prefectural centers.

6. CULCON

The US-Japan Conference on Cultural and Educational Interchange (CULCON) is a binational advisory panel to the two governments on cultural and educational relations between the two nations. In the United States, it is a program of the US Information Agency, and of the Ministry of Foreign Affairs in Japan. Its origins lie in discussions held in Washington, DC in 1961 between President John F. Kennedy and Prime Minister Hayato Ikeda.

In March, 1991 a bilateral accord to restructure and revitalize CULCON was adopted, calling for the establishment of permanent CULCON secretariats in Tokyo and Washington. With funding from the USIA, the US CULCON panel secretariat was established at the Japan-US Friendship Commission to administer CULCON programs.

In the past two years, CULCON has focused on two areas of activity: undergraduate student exchange and information access.

At its April, 1993 plenary session, and again at its January, 1995 plenary session, CULCON called for an effort to “significantly increase the number of American undergraduates studying in Japan in order to build better understanding and closer relations between the two countries.” CULCON efforts in this area have generated three integrated projects: the Bridging Project Clearinghouse; the Faculty and Development Project; and the Curriculum Abroad Project.

The Bridging Project Clearinghouse is a multi-faceted, multi-year effort that will encompass, among other elements, providing information about study opportunities in Japan for US undergraduate students, recruiting US students for study in Japan, and providing support services relating to that study. Fundraising for this project is underway.

The goal of the Faculty and Curriculum Development Project is to develop a corps of faculty members at US institutions who are sensitized to Japan-related issues and can incorporate material about Japan into regular curricula, especially where full-fledged Japan studies and Japanese language programs are not available. In addition to training students on Japan, such faculty members will help recruit students for study there. Together with a major grant from the US Department of Education, which also serves on CULCON, the Commission has provided funds to the Association of American Colleges & Universities to help teams of three faculty members each from eight universities to undertake a year of directed study of Japan and develop undergraduate curriculum to begin the project,.

The Curriculum Abroad Project is a three-year project to develop and implement model curricula in selected Japanese national universities for undergraduates studying there for semester or year-long terms. Currently, twenty national universities are participating in the program. Major funding for the initiative is provided by the Japanese Ministry of Education. The programs are taught in English with a strong Japanese language and culture component. The Department of Education’s Fund for the Improvement of Postsecondary Education (FIPSE) has provided major funding for US participation in the discussion leading to the implementation of actual curriculum.

A binational working group under CULCON auspices has been established and charged with setting policy for all three projects above and for monitoring their progress.

A second focus for CULCON has been issues of information access between the two countries. A joint working group has developed an agenda to address a range of issues including: the current status of accessibility of public resources on the information highway in the United States and Japan; the needs for information; guidelines for fees, copyrights and technical obstacles; and new technologies for information access and sharing.

In 1996, CULCON published the third edition of ON THE RECORD, a directory of Japan specialists in the United States and Japan for use by US media personnel. This resource, published with funding from USIA, is available online through the US CULCON homepage.

The next round of CULCON meetings were held in Washington, DC on May 8-9, 1997.


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

Grants Awarded in Fiscal Year 1995

October 1, 1994 – September 30, 1995


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

A.     JAPANESE STUDIES IN AMERICAN
EDUCATION

Language

      1.  Stanford University, for the                 50,678,250
Inter-University Center for
Japanese Language Studies in
Yokohama - for advanced
          Japanese language training for
          American graduate students

Libraries

      2.  International House of Japan,                 3,000,000
Inc.- to support revision of
          the publication entitled "A
          Guide to Reference Books for
          Japanese Studies"

      3.  National Coordinating                86,156  10,000,000
Committee on Japanese Library
Resources - to support the
          project "Planning and
          Coordinating, Operation
          Maintenance, and Project
          Execution of the National
          Coordinating Committee on
          Japan Library Resources, FY
          1995-1996"


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

Professional
Studies

      4.  Columbia University, Graduate        85,772   6,955,900
School of Journalism - for
          training two future
          journalists for reporting in
          Japan.  Includes funds for
          second half of 1994-1995
          program and first half of
          1995-1996 program

      5.  Committee on Japanese Economic       80,000   3,750,000
Studies - for support of a
          program to train specialists
          on the Japanese economy

      6.  Johns Hopkins University - for       44,200   1,392,000
          support of a program for
          fellowships for disadvantaged
          students at the Nitze School
          of Advanced International
          Studies.  Includes funds for
          second half of 1994-1995
          program and first half of
          1995-1996 program

      7.  Massachusetts Institute of           37,200
Technology - for professional
          graduate fellowships and a
          summer workshop in technical
          Japanese language

Research

      8.  Association for Asian Studies,       46,690   6,000,000
Northeast
Asia Council - for a program
          to enhance the quality of
          American research and
          instruction devoted to Japan,
          primarily for scholars not
          located in the major graduate
          research centers of Japanese
          studies.  Yen portion includes
          3,000,000 for the 1996 year


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

      9.  Social Science Research              78,528   9,000,000
Council - for fellowship and
          administrative support for
          advanced research on Japan by
          American scholars

     10.  Society for Japanese Studies -       17,164
          to publish "The Journal of
          Japanese Studies"

Other

     11.  Amherst College - to support         25,000
          the first year of a two-year
          project entitled "The
          Constitution of Japan:  A
          Documentary History in
          English"

     12.  Columbia University, The             17,449
Donald Keene
Center of Japanese Culture -
          prize for translation of
          Japanese literature

     13.  Society for Japanese Studies -       23,450
          to support a two-day symposium
          entitled "Pacific North- west
          Symposium on the Heisei
          Transforma- tion of Japan"

     14.  University of Hawaii                  4,000
Foundation - to support the
          first conference, entitled
          "Taisho Demokurashii," of the
          Association for Asian
          Studies/Northeast Asia
          Council's conference series on
          competing modernities in 20th
          Century Japan

TOTAL FOR JAPANESE STUDIES                   $545,609 ¥90,776,150


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

B.     THE STUDY OF THE UNITED STATES IN
JAPANESE EDUCATION

Research Centers

      1.  Doshisha University, Center           4,400   5,000,000
for American Studies - to
          provide assistance in the
          development of a research
          collection and other related
          activities of the Center

      2.  University of Tokyo, Center                   2,000,000
for American Studies - to
          provide assistance in
          promoting activities of the
          Center

Faculty and
Curriculum
Development

      3.  American Studies Association -        6,000   1,999,120
          to provide assistance in the
          final two years of a
          three-year collaborative
          project with members of the
          Japanese Association for
          American Studies.  The yen
          portion includes support for
          the 1995 and 1996 programs
 

Other

      4.  The American Studies Society          2,830     140,000
of the University of the
Ryukyus - to provide
          assistance in sending a guest
          speaker from the United States
          to the sixteenth annual
          meeting to be held in Naha


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

      5.  The American Studies Society                  2,000,000
of the Uni- versity of the
Ryukyus - to assist in pub-
          lishing the proceedings of a
          three-year project entitled
          "America and Postwar Okinawa:
          Fifty Years of Cross-Cultural
          Contact"

TOTAL FOR THE STUDY OF THE UNITED             $13,230 ¥11,139,120
STATES IN JAPANESE
EDUCATION 


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

C.     POLICY-ORIENTED RESEARCH

      1.  Defense Budget Project - for         46,300
          the second half of the
          research project entitled
          "Potential Military
          Applications of Japanese
          Advanced Technology Transfers
          in East Asia:  Implications
          for Regional Stability and
          Japan-US Relations"

      2.  Harvard University, The              52,800
Program on US-Japan Relations
          - for the research project
          entitled "Japanese Corporate
          Activities in Asia:  Effects
          on Regional Integration and
          US-Japan Relations"

      3.  Harvard University, The              30,000
Program on US-
Japan Relations - for the
          research project entitled "Who
          is in Charge? - Leadership and
          Influence in Contemporary
          Japan"

      4.  Japan Forum on International                    750,000
Relations - for the research
          project entitled "The Essence
          of US-Japan Economic Conflicts
          and Japan's Response"

      5.  Mississippi State University -       19,609     459,800
          for the research project
          entitled "Global Partner-
          ship:  A Multinational Study
          Group on Dumped Nuclear Waste
          in the Sea of Japan, Sea of
          Okhotsk and the North Pacific
          Ocean"

      6.  US-Japan Joint Committee on          10,000
Politics & Economics of the
Contemporary Middle 
East - for the research
          project entitled "Politics and
          Economics of the Contempo-
          rary Middle East and the
          Possibilities of Japan-United
          States Cooperation"


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

      7.  University of California,            40,200   1,730,000
Berkeley - for the
          research project entitled "The
          Network
          Organization of Japan:
          Structure, Conse-
          quences and Change"

      8.  University of California,            50,270
Berkeley - for final phase of
          the research project entitled
          "The Development of the East
          Asian Economic System:  The
          Role of Investment from, and
          Trade with, Japan and the
          U.S."

      9.  University of California, Los        15,000
Angeles - to publish the
          findings of the research
          project entitled "US/Japan
          Comparative Cultural Policy
          Project"

     10   University of California, San        25,000
     .    Diego - for the research
          project entitled "The Economic
          Structure of Asia:  Competing
          or Complementary Production
          Networks?"

     11.  University of California,            36,168
Santa Cruz - for the research
          project entitled "The Context
          and Rationale for Deregulation
          in Japan:  Real and Financial
          Implications"

     12.  University of Georgia - for          64,400     900,000
          the third and final year of a
          three-year research project
          entitled "Nonproliferation
          Export Control:  US-Japanese
          Interests and Initiatives"

     13.  University of Hawaii - for the       57,481
          research project entitled "The
          Political Economy of
          Deregulation in Japan:
          Sectors, Interest Groups and
          the Prospects for Meaningful
          Market Liberalization"


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

     14.  University of Washington - for       26,000
          the research project entitled
          "Facing Japanese Competi- tion
          in Asia:  A Political-Economic
          Analy- sis"

TOTAL FOR POLICY-ORIENTED RESEARCH           $473,228  ¥3,840,200


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

D.     PUBLIC AFFAIRS/EDUCATION

Outreach Programs 

      1.  Japan-America Society of             30,000
Charlotte - for a first year
          of administrative support

      2.  Japan-America Society of             30,000
Cleveland - for a first year
          of administrative support

      3.  Japan-America Society of             30,000
Minnesota - for a third and
          final year of administrative
          support

      4.  Japan-America Society of             14,000
Northwest Florida - for a
          first year of administrative
          support

      5.  Japan Society of Boston, Inc.        11,400
          - for support of a project
          entitled "Critical Issues in
          Japan and the US:
          Understanding the Demands of a
          New Society"

      6.  National Association of               6,630
Japan-America Societies, Inc.
- for support of the second of
          a three-year project entitled
          "American Business Seminar
          Series"

      7.  University of Arkansas - for a       27,165
          second year of administrative
          support for the Japan-America
          Society of Arkansas


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

Counterpart
Exchanges

      8.  Congressional Economic               65,000   3,985,000
Leadership Institute - for
          support of study trips to
          Japan in 1995 and 1996 by
          senior congressional staff
          members

      9.  The George Washington                62,083   1,280,000
     .    University - for support of
          "The US-Japan Economic Agenda:
           1995 Legislative Exchange
          Pro-
          gram"

     10   International House of Japan -                8,500,000
     .    for services for American
          educational, cultural and
          professional institutions

     11.  The National Security Archive        23,298
(The Tides Foundation) - for
          support of the project
          entitled "Public Forum in
          Japan on Public Access to
          Official Japanese Records"

Media

     12.  Film Arts Foundation - for           25,000
          support of a film entitled
          "Stones and Paper," a one-hour
          documentary on the American
          sculptor Isamu Noguchi

     13.  Film News Now Foundation -for        15,000
          support of a film entitled
          "Doubles:  Japan and America's
          Intercultural Children"

     14.  Films for Humanity - for             15,000
          support of a film entitled
          "SENSEI:  A Documentary
          Profile of Akira Kurosawa"


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

     15.  Pittsburgh Filmmakers - for          12,500
          support of a film entitled
          "Frank Lloyd Wright and
          Japanese Art"

     16.  Public Radio International -         25,000
          for the inter-
          national news program "Market
          Place:  Japan Desk"

TOTAL FOR PUBLIC AFFAIRS/EDUCATION           $392,076 ¥13,765,000


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

E.     THE ARTS

      1.  Exchange Fellowships for             26,492  21,390,000
Creative Artists -
          Jointly-sponsored program
          funded by the Japan-United
          States Friendship Commission
          and the U.S. National
          Endowment for the Arts.  The
          funds devoted to this program
          include $75,000 received from
          the National Endowment for the
          Arts.  Grant funds for the
          artists in FY 1995 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 Blair
          Margarita Guergue
          Sandra Higbie
          Mark Klett*
          Wendy L. Maruyama
          Richard M. Wiley

          *Received offer in FY 1994 but
          deferred
          grant until FY 1995.


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

American Performances/Exhibitions
in Japan

      2.  Fiji Theater Company - for           45,000
          support of costs associated
          with the production of DESHIMA
          at the 1995 Tokyo
          International Festival and
          various other sites in Japan

      3.  Foundation for Dance Promotion       45,000
          - for support of costs
          associated with the Bill T.
          Jones/Arnie Zane Dance Company
          1995 Japan tour

Japanese Performances/Exhibitions
in the United States

      4.  Dallas Museum of Art - for           30,000
          costs associated with
          publication of the exhibition
          catalogue "Power and Glory:
          The Arts of Japan's Golden Age
          (1568-1615)"

      5.  June Watanabe In Company - for       20,000
          costs associated with The Noh
          Project

      6.  Milwaukee Repertory Theater -        45,000
          for costs associated with the
          production of SILENCE, a
          collaboration with the
          Institute of Dramatic Arts of
          Tokyo


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

      7.  Portland State University -           9,390     200,450
          for costs associated with
          "Portland International
          Performance Festival:
          Japanese Contemporary Artists
          in Residence"

      8.  San Francisco Museum of Modern       19,500
Art - for costs associated
          with the exhibit "Japanese
          Avant-Garde Art of the Postwar
          Era Since 1945:  Scream
          Against the Sky"

      9.  Solomon R. Guggenheim Museum -       19,500
          for costs associated with the
          exhibit "Japanese Avant-Garde
          Art of the Postwar Era Since
          1945:  Scream Against the Sky"

Other
 

     10.  The Artist Trust - for a             25,793
          project to produce a published
          history of the Commission by
          former Creative Artist Fellow,
          Tommer Peterson

     11.  Japanese American Cultural &         10,800   1,665,000
Community Center - for the
          Japan-US Visual Arts
          Partnership Project

TOTAL FOR THE ARTS                           $296,475 ¥23,255,450

Commission Program Totals                        U.S.    Japanese
                                               Dollar         Yen
                                             Expenses    Expenses

          Japanese Studies                        $    90,776,150
                                              545,609

          The Study of the United States       13,230  11,139,120
          in Japanese
            Education

          Policy-Oriented Research            473,228   3,840,200

          Public Affairs/Education            392,076  13,765,000

          The Arts                            296,475  23,255,450

TOTAL                                      $1,720,618 ¥142,775,92
           0


                                              U.S.     Japanese
                                            Dollar        Yen
                                            Expenses   Expenses

F.     CULCON ACTIVITIES FUNDED BY
TRANSFER FROM USIA

      1.  Undergraduate Educational          $  5,625
          Exchange
          Oversight Committee

      2.  Media Working Group                  18,755

      3.  Information Access Working              945
          Group

      4.  CULCON XVII Plenary Session          37,195

TOTAL FOR CULCON ACTIVITIES FUNDED            $62,520
BY TRANSFER FROM USIA


Administrative Expenses of the Commission in FY 1995

          Personnel                          $277,515

          General Services                     42,800
          Administration for Payroll,
          Accounting and Other Services

          Office Space                         33,204

          Travel                               17,927

          Communications                        5,613

          Printing, Supplies,                  10,613
          Publications

          Equipment                             2,896

          Other                                14,023

TOTAL FOR COMMISSION                         $404,591
ADMINISTRATIVE COSTS


Administrative Expenses of CULCON in FY 1995

          Personnel                           $71,945

          Communications                          800

          Supplies                                210

          Other                                   250

TOTAL FOR CULCON ADMINISTRATIVE               $73,205
COSTS


Appropriated Dollar Fund Income and Expense Statement

Fiscal Year 1995
(10-1-94 through 9-30-95)

INCOME

          Net Interest (Earned Basis)      $1,175,832

          Refunds on Grants                    90,594

          Received from the National           75,000
          Endowment for the Arts

          Received from the U.S.              135,725
          Information Agency
            for CULCON support

          Transfer from Yen Account           187,000

     TOTAL INCOME                          $1,664,151

EXPENSES

          Commission Grants                $1,720,618

          Commission Administration           404,591

          CULCON Task Force                    25,325

          CULCON Administration                73,205

          CULCON Plenary                       37,195

     TOTAL EXPENSE (GROSS)                 $2,260,934

          Japanese Government Gift Fund     (594,040)
          (Non-Appropriated)

     TOTAL EXPENSE (NET)                   $1,666,894

     GAIN OR (LOSS)                          ($2,743)


Appropriated Dollar Fund Balance

          Original Appropriation, 1-1-76   $18,000,00
                                                    0

          Fund Balance, 9-30-94            14,966,000

          Cash on hand, 9-30-94                57,290

          Income or (loss)                    (2,743)

     FUND BALANCE, 9-30-95                        
     Portfolio                             $14,966,00
     Cash on hand, 9-30-95                  0 $ 
 54,547


Japanese Government Gift Fund (non-appropriated)
Fiscal Year 1995
(10-1-94 through 9-30-95)

          Balance, 9-30-94                 $1,586,018

          Grants                              594,040

          Administrative Expenses               5,275

          Interest Income                     122,000

          Refunds on Grants                     5,179

     BALANCE, 9-30-95                      $1,113,882


Appropriated Yen Fund Income and Expense Statement

Fiscal Year 1995
(10-1-94 through 9-30-95)

INCOME

          Discount on Bill                                   ¥
                                                        1,276,640

          Interest on Japanese                        158,509,234
          Government Bonds and Bank
          Deposits

          Refunds on Grants                             3,911,143

     TOTAL INCOME                                     ¥163,697,01
7

EXPENSES

          Grants                                      ¥142,775,92
                                                                0

          Administration                                2,318,700

          Transfer to Dollar Account                   18,681,300

          Fees                                            610,000

     TOTAL EXPENSE                                    ¥164,385,92
0

     GAIN OR (LOSS)                                    (¥688,903)


Appropriated Yen Fund Balance 

          Original Appropriation                     ¥3,615,429,4
          Received, 11-1-76                                    55

          Balance Received, 10-22-79                  325,683,316

          Fund Balance, 9-30-94                      3,538,346,72
                                                                4

          Cash on hand, 9-30-94                         3,199,013

          Income or (loss)                              (688,903)

     FUND BALANCE, 9-30-95                                     
     Portfolio                                       ¥3,538,346,7
     Cash on Hand, 9-30-95                            24 ¥ 
 
2,510,110

 

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

Grants Awarded in Fiscal Year 1996

October 1, 1995 – September 30, 1996


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

A.     JAPANESE STUDIES IN AMERICAN
EDUCATION

Language

      1.  Stanford University, for the         43,900  50,500,000
Inter-University Center for
Japanese Language Studies in
Yokohama - for advanced
          Japanese language training for
          American graduate students and
          for the Center's Financial
          Advisory Committee

Libraries

      2.  National Coordinating                52,000  10,000,000
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

Professional
Studies

      3.  American Society for                 75,407
Engineering Education - for
          support of a program to
          provide nine-month internships
          to train US engineering
          graduates in Japan


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

      4.  American University - for            23,076
          tuition scholar- ships for two
          students to participate in the
          second year of the
          University's "Dual Masters
          Degree Program" with
          Ritsumeikan University

      5.  Columbia University, Graduate         5,800   6,930,000
School of Journalism - for
          training two future
          journalists for reporting in
          Japan

      6.  Committee on Japanese Economic       50,315   3,750,000
Studies -
          for support of program to
          train specialists on the
          Japanese economy

      7.  Johns Hopkins University - for       24,200
          support of a program for
          fellowships for disadvantaged
          students at the Nitze School
          of Advanced International
          Studies

      8.  Massachusetts Institute of           22,200
Technology MIT-Japan Program -
          for support of the training,
          research and public affairs
          program on Japanese technology
          and management

Research

      9.  The Association for Asian            46,460   3,000,000
Studies, Northeast Asia
Council - for the various
          programs the Council
          undertakes to pro- mote the
          teaching and study of Japan in
          the United States

     10.  Social Science Research              78,528   3,000,000
Council - for fellowship and
          administrative support for
          advanced research on Japan by
          American scholars


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

     11.  Society for Japanese Studies -       10,000
          for publica- tion of "The
          Journal of Japanese Studies"

     12.  University of Colorado at            16,988
Denver - for publication and
          dissemination of the results
          of a survey of Japanese
          programs in colleges and
          schools of business in the
          United States

Other

     13.  Amherst College - for support        25,000
          of the second and last year of
          a project entitled "The
          Constitution of Japan:  A
          Documentary History in
          English"

     14.  The Association for Asian             2,250
Studies, North- east Asia
Council - for creation of a
          data- base system to manage
          the Northeast Asia Council's
          activities undertaken with
          support from the Japan-US
          Friendship Commission

     15.  Cornell University - for              4,505
          support of a scholarly panel
          organized by the American
          Anthropological Association to
          be held on the occasion of the
          50th anniversary of the
          publication of "The
          Chrysanthemum and the Sword"

     16.  NAFEO - for support of a             38,780
          project to expand Japanese
          studies programs in the
          curricula of historically
          black colleges and universi-
          ties

TOTAL FOR JAPANESE STUDIES                   $519,409 ¥77,180,000


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

B.     THE STUDY OF THE UNITED STATES IN
JAPANESE EDUCATION

Research Centers

      1.  Doshisha University, Center                   2,572,000
for American Studies - to
          provide assistance for the
          activities of the Center

Faculty and
Curriculum
Development

      2.  American Studies Association -        6,000
          to provide support of the
          project entitled "Japan-United
          States Dialogues Across the
          Pacific:  Curriculum, Program,
          and Faculty Development for an
          International American
          Studies"

Other

      3.  International House of Japan,                 1,900,000
Inc. - to provide support for
          the project entitled "Survey
          on American Studies in Japan"

TOTAL FOR THE STUDY OF THE UNITED              $6,000  ¥4,472,000
STATES IN JAPANESE EDUCATION


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

C.     POLICY-ORIENTED RESEARCH

      1.  Columbia University - for the        11,730
          research project  entitled
          "International Competitive-
          ness and the Management of
          Japanese and American
          Transnational Corporations in
          Asia" at the Center on
          Japanese Economy and Business

      2.  Georgia Tech Research                37,247
Corporation - for the research
          project entitled "Deregulating
          Japan's Health Care and
          Pension Systems"

      3.  Japan Information Access             23,774
Project - for the research
          project entitled "The
          Political Economy of
          Deregulation in Japan:
          Sectors, Interest Groups and
          the Prospects for Meaningful
          Market Liberalization"

      4.  Japan Information Access             19,607
Project - for dissemination of
          policy information in
          Washington, D.C. on Japanese
          deregulation

      5.  Middle East Institute - for          10,000
          the research project entitled
          "Japan, the United States and
          the Middle East"

      6.  Pacific Forum CSIS - for the         30,000
          research project entitled
          "Cooperation Among Japan,
          China and the US on Security
          in East Asia"

      7.  Purdue University - for the          39,101
          research project entitled "The
          Political Economy of
          Deregulation in Japan:
          Sectors, Interest Groups and
          the Prospects for Meaningful
          Market Liberalization"


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

      8.  University of California,            55,500
Berkeley - for the second and
          final year of the research
          project entitled "The Network
          Organization of Japan:  A
          Continuing Research Program"

      9.  University of California, San        43,746
Diego - for the research
          project entitled "Deregulation
          and the Japanese Firm"

     10   University of California - for       25,852
     .    the second and final year of
          the research project entitled
          "The Economic Structure of
          Asia:  Competing or
          Complementary Production
          Networks?"

     11.  University of California, San        54,471
Diego - for the research
          project entitled "Power and
          Prosperity:  Linkages between
          Security and Economics in
          US-Japanese Relations since
          1960"

     12.  University of California,            34,457
Santa Cruz - for the second
          and final year of the research
          project entitled "The Context
          and Rationale for Deregulation
          in Japan:  Real and Financial
          Implications"

     13.  University of Hawaii at Manoa        24,085
          - for the second and final
          year of the research project
          entitled "The Political
          Economy of Deregu- lation in
          Japan:  Sectors, Interest
          Groups and the Prospects for
          Meaningful Market
          Liberalization"


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

     14.  University of Nevada - for the        8,650     630,000
          research project entitled "The
          Postal Savings System in the
          Context of Financial
          Liberalization, Monetary
          Policy, and Government Deposit
          Guarantees"

     15.  University of Washington - for       38,101
          the research project entitled
          "Regulating Electronics:
          Japan's State Management of
          Competition in the
          Telecommunications, Computer,
          Semiconductor, Software and
          Consumer Electronics
          Industries"

     16.  The Woodrow Wilson Center -          25,000
          for the research project
          entitled "A Conference on
          Policy Implications of
          Japanese Investment in Asia"

TOTAL FOR POLICY-ORIENTED                    $481,321    ¥630,000
RESEARCH 


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

D.     PUBLIC AFFAIRS/EDUCATION

Outreach Programs

      1.  Japan-America Society of             30,000
Charlotte - for a second  year
          of administrative support

      2.  Japan-America Society of             30,000
Greater Philadelphia - for a
          first year of administrative
          support

      3.  Japan-America Society of             15,000
Ithaca Area - for a first year
          of administrative support

      4.  Japan-America Society of             30,000
Nevada - for a first year of
          administrative support

      5.  Japan-America Society of             14,000
Northwest Florida - for a
          second year of administrative
          support

      6.  Japan-America Society of the         30,000
State of Washington - for
          support of Year One of the
          project "US-Japan Links"

      7.  Japan Society of Cleveland -         27,550
          for a second year of
          administrative support

      8.  National Association of               6,630
Japan-America Societies - for
          the third and final year of
          the project entitled "The
          American Business Seminar
          Series"

      9.  National Association of               2,339
Japan-America Societies - for
          a press conference held in
          Washington, D.C. for Japanese
          journalists


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

     10.  University of Arkansas - for a       29,600
          third and final year of
          administrative support for the
          Japan-America Society of
          Arkansas

Counterpart
Exchanges

     11.  Congressional Economic                        3,985,000
Leadership Institute - for a
          study tour to Japan by senior
          congressional staff members

     12.  The George Washington                62,623   1,280,000
University - for support of
          "The US-Japan Economic Agenda:
           1996 Legislative Exchange
          Program"

     13.  International House of Japan,                 8,500,000
Inc. - for services for
          American educational, cultural
          and professional institutions

     14.  Life Foundation - for the             4,000
          project entitled "Banishing
          Fear:  AIDS Awareness Sharing
          Between the US and Japan"

     15.  US Association of Former             20,000
Members of Congress - for the
          Congressional Study Group on
          Japan under the leadership of
          Senator Max Baucus and
          Congressman Thomas E. Petri

Media and Dissemination

     16.  Global Film Network - for the        30,000
          film "After America...After
          Japan"

     17.  Japan Information Access             46,200
Project - for support of the
          project entitled "Rethinking
          the Dissemination of Japanese
          Information"


Grants Awarded                                U.S.     Japanese
                                             Dollar   Yen Grants
                                             Grants

     18.  Pittsburgh Filmmakers/Kenneth        20,000
Love - for postproduction
          costs of a film entitled
          "Frank Lloyd Wright and
          Japanese Art"

TOTAL FOR PUBLIC AFFAIRS/EDUCATION          $397,942 ¥15,045,000


Grants Awarded                                U.S.     Japanese
                                             Dollar      Yen
                                             Grants     Grants

E.     THE ARTS

      1.  Exchange Fellowships for             22,783   9,390,000
Creative Artists
-Jointly-sponsored program
          funded by the Japan-United
          States Friendship Commission
          and the U.S. National
          Endowment for the Arts.  The
          funds devoted to this program
          include $75,000 received from
          the National Endowment for the
          Arts.  Grant funds for the
          artists in FY 1996 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:

          Jill Baroff
          Bruce Chao
          Mei-ling Hom
          Christine LoFaso
          Roy Staab

American Performances/Exhibitions
in Japan

      2.  Foundation for Independent            7,500
Artists, Inc. - for support of
          a project to present Native
          American musicians in concerts
          and workshops in Japan


Grants Awarded                                U.S.     Japanese
                                             Dollar      Yen
                                             Grants     Grants

Japanese Performances/Exhibitions
in the United States

      3.  AN Creative - for support of a       33,345
          project to present eight
          contemporary Japanese dance
          companies at the annual
          conferences of the
          International Society of
          Performing Arts
          Administrators, and the
          Association of Performing Arts
          Presenters

      4.  LaMaMa, E.T.C. - for support          9,200
          of several performances of a
          work entitled "Natural Sonic"
          by the Japanese composer
          Yoshiaki Ochi

      5.  Sankai Juku - for multiple           48,000
          performances throughout the
          United States during the 1996
          North American tour

      6.  Theater Artaud - for support         20,500
          of a five-state US tour by the
          Japanese dance company
          Buto-Sha Tenkei

Other

      7.  The American Composers Forum -       10,160
          for support of a collaborative
          project entitled "Strange
          Nature Residency During Sonic
          Circuits IV"

      8.  CEC International Partners,           5,000
Inc. - for support of the
          screening process to review
          the 1996 applications to the
          US/Japan Creative Artists'
          Fellowship Program


Grants Awarded                                U.S.     Japanese
                                             Dollar      Yen
                                             Grants     Grants

      9.  Center for Poetry and                18,500
Translation at 
Djerassi - for support of
          collaborative translation of
          modern Japanese poetry by
          American translators

     10.  Hamilton College - for support        6,630           `
          of a series of conferences on
          contemporary Japanese music
          featuring lectures and
          discussions, workshops and
          performances by the composers

TOTAL FOR THE ARTS                           $181,618  ¥9,390,000


Commission Program Totals                        U.S.    Japanese
                                               Dollar         Yen
                                             Expenses    Expenses

          Japanese Studies                         $  ¥77,180,000
                                              519,409

          The Study of the United States
          in Japanese Education                 6,000   4,472,000

          Policy-Oriented Research            481,321     630,000

          Public Affairs/Education            397,942  15,045,000

          The Arts                            181,618   9,390,000

TOTAL                                      $1,586,290 ¥106,717,00
           0


                                              U.S.     Japanese
                                            Dollar       Yen
                                            Expenses   Expenses

F.     CULCON ACTIVITIES FUNDED BY
       TRANSFER FROM USIA

      1.  Undergraduate Educational             4,105
          Exchange Oversight Committee

      2.  Media Working Group                  10,548

      3.  Information Access Working            5,672
          Group

TOTAL FOR CULCON ACTIVITIES FUNDED            $20,325
BY TRANSFER FROM USIA


Administrative Expenses of the Commission in FY 1996

          Personnel                          $293,894

          General Services                     33,322
          Administration for Payroll,
          Accounting and Other Services

          Office Space                         33,622

          Travel                               18,073

          Communications                        9,503

          Printing, Supplies,                   4,978
          Publications

          Equipment                               333

          Other                                28,206

TOTAL FOR COMMISSION                         $421,931
ADMINISTRATIVE COSTS


Administrative Expenses of CULCON in FY 1996

          Personnel                           $77,358

          Communications                          400

          Office Supplies                         200

          Other                                   250

TOTAL FOR CULCON ADMINISTRATIVE               $78,208
COSTS


Appropriated Dollar Fund Income and Expense Statement

Fiscal Year 1996
(10-1-95 through 9-30-96)

INCOME

          Net Interest (Earned Basis)      $1,226,503

          Refunds on Grants                    91,351

          Received from the National           75,000
          Endowment for the Arts

          Received from the U.S.               98,533
          Information Agency for CULCON
          support

          Transfer from Yen Account           125,000

     TOTAL INCOME                          $1,616,387

EXPENSES

          Commission Grants                $1,586,290

          Commission Administration           421,931

          CULCON Task Forces                   20,325

          CULCON Administration                78,208

     TOTAL EXPENSE (GROSS)                 $2,106,754

          Japanese Government Gift Fund     (489,223)
          (Non-Appropriated)

     TOTAL EXPENSE (NET)                   $1,617,531

     GAIN OR (LOSS)                          ($1,144)


Appropriated Dollar Fund Balance

          Original Appropriation, 1-1-76   $18,000,00
                                                    0

          Fund Balance, 9-30-95            14,966,000

          Cash on hand, 9-30-95                54,547

          Income or (loss)                    (1,144)

     FUND BALANCE, 9-30-96

          Portfolio                        $14,966,00
0

          Cash on hand, 9-30-96               $53,403


Japanese Government Gift Fund (non-appropriated)
Fiscal Year 1996
(10-1-95 through 9-30-96)

          Balance, 9-30-95                 $1,113,882

          Grants                              489,223

          Administrative Expenses               6,527

          Interest Income                     124,980

          Refunds on Grants                     6,344

     BALANCE, 9-30-96                        $749,456


Appropriated Yen Fund Income and Expense Statement

Fiscal Year 1996
(10-1-95 through 9-30-96)

INCOME

          Discount on Bill                                770,796

          Interest on Japanese                        ¥115,618,23
          Government Bonds and Bank                             3
          Deposits

          Refunds on Grants                             1,530,106

     TOTAL INCOME                                     ¥117,919,13
5

EXPENSES

          Grants                                      ¥106,717,00
                                                                0

          Administration                                4,177,052

          Transfer to Dollar Account                    7,581,150

          Fees                                            712,658

     TOTAL EXPENSE                                    ¥119,187,86
0

     GAIN OR (LOSS)                                   (¥1,268,725
)


Appropriated Yen Fund Balance

          Original Appropriation                     ¥3,615,429,4
          Received, 11-1-76                                    55

          Balance Received, 10-22-79                  325,683,316

          Fund Balance, 9-30-95                      3,538,346,72
                                                                4

          Cash on hand, 9-30-95                         2,510,110

          Income or (loss)                            (1,268,725)

     FUND BALANCE, 9-30-96
     Portfolio                                       ¥3,538,346,7
     Cash on hand, 9-30-96                                     24
¥1,241,385