For us Japanese shipbuilders, strengthening of our competitive position in the world market is an urgent requirement. In particular, securing our technical advantage constitutes the core of non-price competitiveness. I think it is essential to enhance strategic technological themes and to broaden the scope of our initiatives in other new fields of technology in addition to going farther ahead in our ongoing technological attempts for the utilization of ocean space. I also find it imperative to further impress our clientele with the excellence of our technology and product quality by consolidating the common basis of technology in anticipation of the needs of the times.

At present, the Shipbuilding Industry Competitive Strategy Conference (a consultative committee reporting to the Director-General of the Maritime Bureau), in which the industry, the government and the academic community are represented, is discussing how Japanese shipbuilding can continue to develop as a stable industry in an environment of free and fair competition and to play a vital role in the world shipping and shipbuilding industries. As the discussions have identified key issues to be addressed, we would like first to endeavor for the development of a common perception regarding these issues while taking due note of differences in business environment among individual companies, and then to evolve specific actions and implementations to help increase our competitive strength out of the issues individually identified by the industry, the government and the academic community.

At the international level, there is an ongoing interplay of complex factors including the EU’s filing of complaint with the WTO against Korea, the start of negotiations for a new OECD Shipbuilding Agreement and intensive environmental and safety initiatives promoted by various countries and bodies. We will make our best efforts to keep track of these developments and find out what we can do to address them, and actively make Japanese shipbuilders’ views known in all relevant international scenes. Especially, we will continue to approach the competent governmental authorities and international organizations in pursuit of the realization of a free and fair competitive environment for steady development of world shipbuilding.On the other hand,the JECKU Top Executive Meeting, which is our important international framework, has arranged a new forum of consultation in which the fast growing Chinese shipbuilding industry is now represented. SAJ will continue its efforts to promote not only mutual understanding with China but also discussions in further depth among the five regions, Japan, Korea, Europe, the U.S. and China in search of ways to greater stabilization of world shipbuilding.