Historical Dictionary of United States-Japan ... - Bakumatsu Films

JAPAN–U.S. JOINT DECLARATION ON SECURITY • 129
ties. Because tax withholding by the local government on royalties of
immaterial intellectual property rights on which patent and trademarks
are acquired, royalties generated, just like other profits, will be
taxed in the resident country only based on the net profit. The treaty
is significant for being the first treaty under which Japan agreed to
eliminate tax withholding by the local government. The Japan–U.S.
Income Tax Treaty also eliminated or reduced tax withholding by local
governments on corporate dividends paid to overseas foreign investors.
Under the treaty, the local government pay-as-you-go taxation
of interest income paid to financial service companies and
pension funds was also abolished. Aside from a few exceptions, such
as taxation of real estate and restructured financial institutions, the
treaty in principle abolished pay-as-you-go taxation.
JAPAN–U.S. JET AIRCRAFT PRODUCTION AGREEMENT.
The first Japan–U.S. Jet Aircraft Production Agreement was concluded
on 3 June 1955. It stipulated U.S. support for the production
of jet aircraft in Japan. Because the United States assisted Japan in
kind, there is no record of exactly how much Washington provided
for this purpose, but the sum reached approximately $11 billion. Because
the government delayed its announcement of the conclusion of
the first Japan–U.S. Jet Aircraft Production Agreement in the Diet, it
became a controversial issue in Japan. In order to rectify this situation,
when Japan and the United Stated discussed a second
Japan–U.S. Jet Aircraft Production Agreement, the government reported
to the Diet at an early stage that Japan and the United States
carried out negotiations and the U.S. assistance would reach around
100 million yen. The second Japan–U.S. Jet Aircraft Production
Agreement was finally concluded on 17 April 1956. Based on this
agreement, the United States provided Japan with parts to produce
110 F-86F jet aircraft. The agreement brought large profits to jet aircraft
makers in Japan.
JAPAN–U.S. JOINT DECLARATION ON SECURITY—
ALLIANCE FOR THE 21ST CENTURY. The end of the Cold War
precipitated the need for a redefinition of the security relationship between
the United States and Japan. Negotiations of this redefinition
were largely led by Washington. They began in 1994 and continued for