Table of Contents

　〜 Three Action Principles 〜

• Private sector's initiative
• Creation by the Government of an environment favorable to the private sector's initiative
• Demonstration of initiative toward the establishment of a global consensus

　〜 Four Goals 〜

• Implementation of Electronic Commerce
• Realization of Electronic Government
• Elevation of Information Literacy;
• Installation of Information and Telecommunications Infrastructure"

(1) Significance of an Advanced Information and Telecommunications Society

1. Definition of an Advanced Information and Telecommunications Society
   　An advanced information and telecommunications society is a new socioeconomic system whereby people can realize free creation, circulation, and sharing of information and knowledge (the products of human intellectual activities) and harmonize daily life, culture, industry, economy, nature, and the environment. This system is intended to replace the current malfunctioning system, which is based on mass production and mass consumption. The new system will lead to a wave of reforms, which may be collectively referred to as a "digital revolution," that will broaden economic frontiers, eliminate the need for high-cost structures, revitalize regional societies, and enable people to live more freely and affluently.

2. Changes in Conditions Since the Formulation of the Previous Basic Guidelines, and the Need for Revision of the Guidelines
   　As shown by the recent global increase in the use of the Internet and electronic mail, the spread of portable remote information terminals such as mobile phones, and the emergence of global mobile radio communication systems, networks for various sectors of the economy and society are appearing and expanding at a rate that was not foreseen when the previous Basic Guidelines were drawn up.
   　The previous Basic Guidelines failed to take into account the incipient boom in electronic commerce. That boom was a result of efforts from both the government, which contributed a number of test-bed projects based on a series of supplementary budgets, and the private sector, which set about establishing common guidelines for electronic commerce. The rate of growth in electronic commerce is so high that some companies have already begun achieving profits through this means.
   　In addition, it was determined in the "Revision of the Basic Plan for Computerization of Administration" (approved at the Cabinet meeting on December 20, 1997) that, in principle, as many of the government's application and notification procedures as possible would be conducted electronically by the end of fiscal 1998. It was also determined in the "Action Plan for Economic Structural Reform and Creation" (approved at the Cabinet meeting on May 16, 1997) that as a general policy, all the designated statistics disclosed by the government would be made available to the public in electronic form by the end of fiscal 1998. As these initiatives indicate, progress toward an "electronic government" has been rapid in recent years.
   　We are currently poised to make a transition from a post-industrial-revolution economic society, which attached the greatest importance to "mass production and mass consumption," to an economic society, which is based on the "creation and distribution of information" - processes made possible by the "digital revolution." We are in the midst of a paradigm shift that will create a whole new set of values.
   　In response to such far-reaching changes, we decided to review all of the "Basic Guidelines on the Promotion of an Advanced Information and Telecommunications Society," which indicated the fundamental direction our country would take toward establishing an advanced information and telecommunications society, and to disclose, both within and outside Japan, new Guidelines incorporating situational changes that have occurred since the previous Guidelines were established. These Basic Guidelines also include measures in response to many political issues that have recently emerged. The new Guidelines will facilitate further efforts toward establishing an advanced information and telecommunications society.

3. Effects of Realization of an Advanced Information and Telecommunications Society
   i) Accomplishment of economic structural reform
   　The creation of an advanced information and telecommunications society will change the structure of the Japanese economy. The changes will affect the productivity of industries and organizational structures, facilitate the rationalization of distribution, and improve efficiency in brokerage and similar businesses.
   　The development of economic activity which reduces international borders through the use of information and telecommunications networks will promote global economic competition and lead to economic structural reforms not only in Japan, but also internationally.
   
   ii) A standard of living that allows the Japanese people to enjoy true affluence
   　The creation of an advanced information and telecommunications society will transform our life. Greater speed and improved efficiency in transactions will lower social costs, increase real income by correcting high-cost structures, reduce the occurrence of daily stress, and improve the convenience of daily life.
   
   iii) Realization of a diverse range of lifestyles and formation of new communities
   　Growing information and telecommunications networks will encourage the formation of a new type of community, one that transcends traditional geographic boundaries and encourages new kinds of human relations. The changes will also increase the feasibility of telecommuting, allow consumption activities to be conducted through the Internet without consumers leaving their homes, and open up a wide range of lifestyle choices to satisfy a variety of individual ideals.
   
   iv) Development of information and telecommunications industries: strategic industries of the next generation
   　The applications of electronic commerce in many areas of economic activity will expand and increase in sophistication. Information and telecommunications technology will continue to develop to meet ever-increasing demand while the information and telecommunications industries continue their rapid growth, consolidating their roles as leading industries in the new economy. New industries will arise in various areas peripheral to information and telecommunications technology, creating new jobs.
   
   v) Change in social structure on a nationwide scale
   　The creation of an advanced information and telecommunications society is expected to encourage the self-reliance of regional areas and to allow population and functions to diffuse from major metropolitan areas toward regional areas. This is especially likely for areas such as Tokyo and its environs, which are currently burdened with excessive population concentrations and functions. Such progress will be the direct result of a decreasing emphasis on physical transportation and a declining need for high population concentrations and economies of scale.
   
   vi) Further progress in globalization
   　Global networks will enable borderless transactions to be conducted instantaneously, transforming traditional social and economic structures. Such networks will also contribute to the improvement of international relationships in various spheres, further accelerating globalization.
   

4. Necessity of Further Acceleration of the Development of the Advanced Information and
   Telecommunications Society
   i) Strong promotion of economic structural reform
   　The paradigm shift made possible by the digital revolution necessitates a committed effort to promote reforms in Japan's economic and industrial structures as quickly as possible, based on the emerging principle that the most important element in economic activity is the creation and distribution of information. Encouraging progress in information and telecommunications is the most important aspect of reforming rigid industrial structures to improve efficiency and vitality in industries and lifestyles. This is a task which the entire nation must tackle. Failure to devote sufficient energy to such efforts now will result in Japan falling behind other nations such as the United States, where the transition to more efficient economic and industrial structures is already in progress. Such neglect will inevitably weaken Japan's international competitiveness in the medium to long term.
   
   ii) Demonstration of international leadership
   　The United States and Europe last year announced basic policies for the establishment of international regulations governing electronic commerce and other electronic activities. These policies are expected to form the kernel of a new international economy. In May of this year, Japan and the United States also made a joint statement on electronic commerce. Current activity includes numerous bilateral discussions between Japan, the United States, and Europe, as well as discussions in multilateral (regional) forums such as the OECD, WTO, and APEC. International discussion of electronic commerce is quickly becoming of paramount inportance. Japan must take an active leadership role in helping to create the rules for the new era, or risk lagging behind other nations, possibly losing its current standing in the international economy.
   
   iii) Creation of new industries and employment
   　The present economic boom and historically low unemployment rate in the United States are largely due to developments in information and telecommunications technologies, and innovations by the new energetic companies that have sprung up around these technologies. In Japan, as well, the information and telecommunications industries are expected to grow rapidly and become leading industries. New industries will arise, with venture businesses playing supporting roles in the digital revolution. The ever-developing information and telecommunications technologies and their applications are expected to create new jobs. As described in the "Action Plan for Economic Structural Reform and Creation" (approved at the Cabinet meeting on May 16, 1997), advancing Japan's information and telecommunications industries and applications and maintaining them at a world-class level is critical. In conjunction with the private sector, the government must implement all necessary measure! ! ! s by fiscal 2001.
   
   iv) Consideration for disadvantaged members of society and alleviation of geographical constraints
   　An advanced information and telecommunications society will take human factors into account and provide for the aged and physically handicapped, making it possible for such people to participate more actively in society and allowing them to play more varied roles in cultural and political activities. It is essential to provide access to inexpensive and easy-to-use services and equipment to everyone.

1. What an Advanced Information and Telecommunications Society Should Be
   i) A society in which everyone can enjoy the benefits of advanced information and telecommunications
   　The most significant feature of an advanced information and telecommunications society is that information located at distant locations may be used as if located near at hand, while information one provides may be transmitted to any location quickly and accurately. This is made possible by a seamless information and telecommunications network. Our objective is to realize a society in which these benefits are available to all people. To this end, improvements in information literacy are planned for workplaces, schools, and homes, targeting all people. In step with these initiatives, further reductions in telecommunications charges are planned.
   
   ii) A society in which the freedom and safety of information and telecommunications are assured
   　The value of information will increase further in an advanced information and telecommunications society. As this information will make possible a wide range of economic and social activity, assurances of security and reliability and protection of privacy will become even more important. To overcome the potential vulnerabilities of an advanced information and telecommunications society, efforts will be made to guarantee the security and reliability of information and telecommunications, as well as the protection of privacy, while also ensuring free circulation of information and free activity by the private sector. Consideration will also be given to public safety, disaster prevention, and national security as well.
   
   iii) A society in which people have a choice of intellectual lifestyles and enjoy true affluence
   　An advanced information and telecommunications society overcomes the limits of geography and transportation, thereby allowing instant communication and access to information. Such a structure makes it much easier to provide fora in which Japanese people from all walks of life may satisfy their intellectual curiosity. Without the necessity of being physically present at a workplace (e.g. by making telecommuting possible), workers will be free to shape their own individual lifestyles. Our objective is to create a society that encourages true freedom and affluence - not merely material affluence.
   
   iv) A society in which local communities are revitalized
   　Information and telecommunications networks overcome the barriers of distance, erasing at a stroke the information gap between cultural centers and outlying regions, contributing to the balanced development of the country, and improving the information transmission and reception capabilities of regional areas. While working with local authorities, regional communities, and corporations, we need to consider means for increasing the use of information and telecommunications in remote regions, which vary greatly in their geographical characteristics and histories.
   
   v) A society in which circulation of information across national boundaries is realized
   　Cooperation in international joint projects will enable Japan to clearly indicate what kind of benefits can be brought about by the use of information and telecommunications. Providing developing countries with the benefits of Japan's technology and experience in the fields of information and telecommunications will also contribute to a balanced information and telecommunications infrastructure on a worldwide scale.
   
   
2. Action Principles for Realization of an Ideal Advanced Information and Telecommunications Society: Three Action Principles
   i) Private sector's initiative
   　Technological innovation today is progressing briskly, as are new trends resulting from the digital revolution. As the rise of the information and telecommunications industry in the U.S. shows, free competition led by the private sector enables a smooth transition to a new business environment and enables rapid responses to current challenges. In general, the work of establishing an advanced information and telecommunications society should be led by the private sector, in a climate of fair and effective competition.
   
   ii) Creation by the government of an environment favorable to the private sector's initiative
   　The fundamental role of the government is to create an environment that allows the private sector to operate with optimum vitality. The government must keep in mind that the development of information and telecommunications technology is rapid, and that there are many directions in which businesses and society may head. The government must be careful to avoid imposing unnecessary regulations and restrictions that may inhibit such possibilities. If the government participates in the establishment of new regulations, its participation must be well-defined, transparent, and minimal. The government must restrict its administrative measures to the minimum necessary, and avoid creating an atmosphere of uncertainty. Guidelines on the involvement of the government should be implemented on a sector by sector basis, following thorough discussions.
   
   iii) Demonstration of initiative toward the establishment of a global consensus
   　The government must keep in mind that the globalization of the economy and society will continue to progress because of information and telecommunications networks. The government must work in concert with international organizations and with other nations, participating in discussions concerning international harmonization and international standards while securing its position. It must demonstrate initiative in establishing an international consensus.

1. Role of the Private Sector
   　In establishing an advanced information and telecommunications society, it is desirable that the private sector demonstrate creativity and leadership on the basis of fair and effective competition in order to maintain rapid progress in information and telecommunications technology and capitalize upon the potential of diverse applications.
   　More specifically, the private sector must observe market needs which are changing in step with the introduction of information and telecommunications technology, supply products and services promptly in order to fulfill those needs, and by demonstrating feasibility, strive to develop and market products and services that anticipate the emergence of potential needs.
   　As exemplified by the ability of the private sector to create rules or guidelines for electronic commerce and de facto standards for information and telecommunications technology, and due to the rapid pace of development of information and telecommunications technology this function of the private sector will become even more important, as rules developed in the marketplace can be promptly and effectively substituted for institutions traditionally established by the Government. Therefore, the role of private sector in setting these rules is expected to increase in importance.
   
   
2. Role of the Government
   　To help establish an advanced information and telecommunications society, the government, based on a fundamental recognition of the effectiveness of unfettered private sector activity, will create an environment conducive to opportunely tapping the vitality of the private sector through the flexible reform of institutions, the relaxation of unnecessary regulations, the establishment of conditions for fair and effective competition, the promotion of basic and leading-edge research and development, and the provision of public assistance for infrastructure improvement.
   　At the same time, keeping in mind the rapid progress of technological innovation in the information and telecommunications sectors, the government will systematically and comprehensively implement measures focusing on tasks that are unlikely to be accomplished solely by the private sector's efforts or competition.
   　The government also has an important role to play in implementing countermeasures against unlawful acts such as crimes committed using a network, as well as in rectifying disparities among regions or between individuals due to advanced age or disability, so that all people can confidently enjoy the benefits of an advanced information and telecommunications society.
   　While carrying out these preparations, the government must also acknowledge that the government itself is the largest consumer of the products and services provided by the information and telecommunications industries. In the United States, for quite some time the government has been the leading supporter of the information and telecommunications industries. The Japanese government should also act as the driving force for demand by actively promoting the use of information and telecommunications and improving procurement for information and telecommunications products and services. The government should also educate the public about the significance of information and telecommunications, based on actual experience in improving the efficiency of administrative affairs and administrative services through the increasing use of information and telecommunications. This should be a collaborative effort undertaken by governmental agencies and municipal public entities. 　Furthermore, the transparency of these measures needs to be improved through clear indications to the public of the specific content of its information policies based on the Basic Guidelines, and through follow-ups based on evaluations of measures already implemented.

The policy issues Japan must tackle, and the basic aims of the measures it needs to devise, are as follows.

(1) Laying the Groundwork for the Promotion of Electronic Commerce

　The report of the Working Group on Electronic Commerce of the Advanced Information and Telecommunications Society Promotions Headquarters, "A Japanese Initiative in promoting Electronic Commerce," has now taken its final shape and was presented to the Headquarters. The government needs to actively lay the groundwork for the promotion of electronic commerce in accordance with the directions specified in the report.

1. Electronic Authentication
   　Electronic authentication is used to verify the identity of a person with whom data is being exchanged electronically, and to verify that the data has not been tampered with. It is a necessary element to ensure the security of electronic commerce.
   　However, the required level of authentication and its function will vary according to the form of the transaction. Various authentication methods and technologies are being rapidly developed and electronic authentication issues are actively being discussed in the international community. Therefore, it is necessary to continue studying the authentication system in its entirety, with government involvement, ensuring that parties to transactions may freely choose the authentication method that best meets the requirements of the particular transaction format.
   　Judging the reliability of an electronic authentication system requires the disclosure of information, by which such a judgment can be formed. In light of this, the private sector should be encouraged to formulate guidelines for .self-regulation.
   　The Government should promote the autonomous development of such electronic authentication technologies and guidelines. At the same time, the Government is also expected to negotiate with foreign governments to ensure that regulations introduced in foreign countries are kept to a minimum and do not discriminate against the authentication methods of other countries. Such regulation could become a barrier to the promotion of international electronic commerce. Furthermore, the Government should also actively support attempts to establish impartial and neutral international standards for a secure electronic authentication system. Finally, the Government is also expected to study the possibility of establishing an electronic authentication system and an electronic notary system based on the current public administrative authentication services, including the commercial registration system.
   　So-called "electronic signatures" should at least be accorded the same legal status as handwritten signatures and seals. Thus, the Government should continue the research necessary to achieve this goal, including the clarification of basic rules regarding the rights and responsibilities of the parties to transactions. At the same time, the government must take into consideration the compatibility of Japan's system with international efforts, for instance, the UNCITRAL preparatory work to draft a model law which has been under way since 1996.
   
   
2. Protection of Privacy
   　With the development of information and telecommunications technology, it has become possible to process large amounts of information rapidly, and to accumulate, search, use and alter the information easily. Under such circumstances, the protection of personal data has rapidly become even more necessary than in the past. The ease with which information is distributed is indispensable in the development of electronic commerce, but the full protection of personal data must be ensured.
   　However, because the way of using, method of collecting, and the content of, personal data differ according to types of industry and business, the private sector should take the initiative to formulate guidelines and set up registration systems and labeling or marking systems specific to each industry and business. On the other hand, governmental regulations concerning entities dealing with highly confidential information, such as personal credit data and medical data, which could be damaging if leaked, should be considered.
   　The Government should promote independent efforts in the private sector, and review the situation, taking into consideration legal regulations. In order to alleviate the anxiety of consumers regarding infringement on their privacy, the Government should make the necessary efforts to encourage businesses to disclose to consumers the manner in which they protect personal data. Consumer consultation services should be augmented as well. At the same time, it will be necessary to consider the conformity of Japan's policies with the OECD Guidelines Governing the Protection of Privacy and Transborder Flows of Personal Data and with other international discussions in progress.
   
   
3. Measures Dealing with Illegal/Harmful Content
   　The problem of illegal and harmful content is a serious issue today due to the rapid spread of the Internet, the large volume of information that is widely distributed, and the fact that such information can be downloaded instantaneously at home or any place else. If this problem is left unsolved, trust in the Internet will be lost, thus not only impeding the development of electronic commerce, but also raising the fear that the Internet could be damaging for the sound education of children.
   　Content which is considered illegal under the current obscenity and libel laws is also illegal when transmitted over networks, and must be regulated accordingly.
   　Content which is legal but harmful to the youth must also be controlled. New laws should regulate adult-oriented businesses that offer sexual content over the Internet. As a basic measure, the government will promote technological means, such as the use of content-filtering systems by guardians of minors, and self-regulation by the private sector.
   　The government must improve the effectiveness of its regulation of illegal content, striving for a judicious and fair application of the above-mentioned laws. At the same time, it must promote improvements in filtering-system and other technologies, the independent creation of guidelines by Internet providers, and education for both users and providers.
   
   
4. Consumer Protection
   　Just as with conventional commercial transactions, consumers are frequently placed at a disadvantage in electronic commercial transactions, due to an unequal distribution of knowledge and information. Consumer problems involving electronic commerce have increased recently. Steps are required to ensure that consumers have the same level of protection as in conventional commercial transactions. Adequate and appropriate distribution of information for transactions and transparent measures are needed to prevent problems and to provide redress if problems occur. Consumers must also be educated so that they can make appropriate decisions whenever possible.
   　Given that laws governing consumer protection have so far been based on a variety of actual transactions or independent measures taken by companies, further study is required to clarify the proper interpretation of current legislation, and the fair administration of laws previously strengthened to ensure fair and proper indication in advertising. The study should include consideration of a system for processing complaints, and for the promotion of independent measures such as the preparation of self-regulation guidelines by companies. In addition, a reconsideration of the current legal system may be in order. Given the distinctive characteristic of electronic commerce - its ability to cross national borders easily - we must take an active part in OECD discussions and in other fora in order to devise fair guidelines, and to ensure worldwide consistency and establish a system for international cooperation.
   　Problems regarding propaganda and advertising transmitted directly to consumers through information and telecommunications networks, such as exaggerated or false advertising, should be handled within the existing legal framework. With regard to the arbitrary transmission of propaganda and advertising, systems for screening advertisements and processing complaints as well as the development and diffusion of filtering technology should be promoted.
   
   
5. Security Measures and Countermeasures Against Crime
   　To develop and promote electronic commerce, the network, as the basic infrastructure, should be protected against violations such as unauthorized access and infection by computer viruses. To ensure the security of networks, thorough measures should be implemented so that such intrusions can be prevented and the offenders arrested and indicted. To this end, the establishment of appropriate laws should also be considered.
   　The Government must promptly respond to new types of crimes committed through computer networks. However, because the ability to locate a criminal whose identity is only manifested electronically and to control such types of crimes is limited, it is important to prevent these criminal activities from occurring, and to establish measures that effectively protect potential victims. To this end, besides educating users, it is necessary to further develop counter-technologies and also to formulate guidelines and legislation necessary to establish an adequate security framework containing measures to protect against, for example, unauthorized access and abuse of cryptographic technology. Such measures should be formulated to comply with the principles prescribed in the OECD Guidelines for the Security of Information Systems (1992) and the OECD Guidelines for Cryptography Policy (1997).
   　With regards to other crimes, such as money laundering schemes aided by the use of networks, the formulation of minimal legal restrictions that protect consumers should be considered while taking note of the balance with existing commercial regulations.
   
   
6. Rules Related to Commerce in General
   　The rules that govern commercial transactions through networks should be determined by the parties to the transaction under the principle of party autonomy, as is true for all current commercial transactions. However, because business practices utilizing electronic commerce have not yet been fully developed, model agreements and guidelines are particularly useful in clarifying the legal relations of the parties involved and eliminating uncertainty from the transactions. Therefore, initiatives to formulate such model agreements and guidelines should be promoted.
   　Electronic commerce will involve situations not covered by the current civil and commercial codes which are premised on face-to-face/paper-based declaration of intent. Thus, it is necessary to review anew and clarify specific ground rules concerning the requirements of traditional transactions, such as transactions by unauthorized parties and requirements for taking priority over a third party in respect of an assignment of claims. The effectiveness of stipulations and incorporation by reference should also be considered thoroughly. On the other hand, full consideration must be given to the diversified nature of transactions in the electronic environment, the rapid progress of technology, and compatibility with international agreements such as the UNCITRAL Model Law on Electronic Commerce adopted in 1996. Care must also be taken to ensure that the smooth development of electronic commerce will not be hindered, while monitoring the integration of practices.
   
   
7. Electronic Payment and Electronic Money
   　Electronic payments and electronic money are still in the early developmental stage, and the framework for their use has not yet been established. In the future, new transactional methods may emerge as well. In this context, it is important in the immediate future to promote the development of technologies, free experimentation and creativity in the private sector. On the other hand, it is also necessary to provide users with appropriate protection, to ensure the reliability of payment systems which can be trusted by users and to promote the development of electronic payment systems and electronic money.
   　The Government should attempt to balance these two objectives, and in the near future, while monitoring private sector initiatives, it should study the legal environment of this new field.
   　Specifically, the Government must undertake the responsibility of establishing fair regulations for:

   -the governance of electronic money and electronic payments

   -a system of user protection

   -requirements for validating the issuer of electronic money

   -measures for responding to cases when the issuer of electronic money becomes insolvent

8. Intellectual Property Rights
   　With developments in information technology, it has become easy to copy or alter digital information. Computer networks like the Internet and digital storage media have become widely used as the preferred means of electronic communication and storage. These changes enable the easy transmission of information to the general public by anyone without any special technology or commercial funding. To promote the development of electronic commerce, we should discuss the framework for designing the protection of intellectual property while taking into consideration the above-mentioned characteristics of information technology. However, the issues concerning intellectual property rights in the context of the promotion of electronic commerce include the complicated relations among the various parties involved. In addition, in order to solve these issues, many technological obstacles may have to be overcome.
   　The Government should promote the review of intellectual property legislation, based on the outcomes of the research conducted by WIPO including the new treaties adopted in 1996. At the same time, the Government should discuss protection systems for intellectual property rights from the open perspective of finding adequate solutions not only through reviewing intellectual property laws but also through means of other related legislative action. Furthermore, the government should actively support the development of technologies related to prevention of unauthorized use, such as electronic watermarks, as well as other technologies for management of intellectual property rights.
   　A copyright system is part of the essential legislative foundation for the qualitative and quantitative content enrichment which is necessary for the development of electronic commerce. To maintain and increase the incentive for content creation and to facilitate appropriate use of content in actual practice, the government will immediately promote a study of desirable legal means for controlling usage of copyrighted materials, as well as preparing systems for provision of copyright information that will satisfy user needs.
   　Also indispensable is the protection of industrial property rights concerning fundamental technology supporting the development of electronic commerce.
   
   
9. Domain Name System
   　The domain name serves as the Internet address of a host computer, and its importance continues to increase. A variety of issues related to the domain name system have surfaced, such as the short supply of domain names and IP addresses, the increased need for international registration and control of domain names, and disputes concerning domain name and trademark rights.
   　To improve the usefulness of the Internet, the government must study these issues. In the process, it should consider a system for registration and control of domain names that allows international participation, is fair, and is based on market principles. To guard against violations of registered trademarks, the government needs to pay attention to trademarks when domain names are registered, and consider a prospective system for processing complaints.
   
   
10. Taxes
    　With the development of electronic commerce, economic activities will become complex and global, and it will become increasingly difficult to accurately grasp the concrete details of transactions: who, when, where and how these transactions were conducted and in what volume. As a result, it will become necessary to devise appropriate taxation methods.
    　Taxation of electronic commerce must be fair, neutral and simple. Since electronic commerce is global in scale, it will also be important to establish a taxation structure which is consistent with international tax laws in order to avoid dual taxation or tax leakage. From this perspective, Japan must make efforts to contribute to the progress of the ongoing tasks of the OECD.
    
    
11. Tariffs
    　In Japan, no customs duties are imposed on content transmitted electronically. At the Second WTO Ministerial Conference held last May, a declaration was adopted in which it was stated that a comprehensive study on electronic commerce should be implemented by the Third Session the next year, and that Members would continue their current practice of not imposing customs duties on electronic transmissions. In order to promote global electronic commerce, Japan should actively participate in discussions in the WTO or in other international fora, while adhering to the WTO Agreement. At the same time, the imposition of customs duties needs to be considered immediately both from the legal and practical perspective, including, for example, the issue of how each country views the relationship between the customs duties imposed on imported software that is recorded on physical storage devices such as CD's and the same software which is transmitted over the Internet .

[Basic concept]

　Increasing the use of information technologies and telecommunications in the public sector contributes to reducing the cost of government services and improving public convenience. It also plays an important role in promoting the use of information and telecommunications in both society and the economy. The government itself will introduce leading-edge applications, and the relevant ministries and agencies will unite to research and develop information and telecommunications systems that will form the foundation of various public services such as administration, education, and transport, so that all people may have access to satisfactory public services. In their efforts, government agencies and municipal public entities must proceed comprehensively, systematically, and in cooperation with each other.

1. Increasing the Use of Information Technologies and Telecommunications in Government Administration
   　Increasing the use of information and telecommunications technology in every field of government administration will result in the reform not only of government work and activities but also of government organizations and will contribute to effective and efficient government administration for the benefit of the Japanese people.
   　In step with increasing use of information and telecommunications technologies in economic activities, as witnessed by the rapid expansion of Internet use and the beginnings of electronic commerce, there are now increased expectations regarding public communication with the government, and demands for a reduced burden in the procedures used when dealing with government, such as when submitting applications and reports. Our objective will be to shift from an information management system based on paper to a method for managing electronic information that makes free use of information and telecommunications networks, thereby implementing an electronic government for the start of the 21st century.
   　Viewed in this light, the plan for increasing use of information and telecommunications in administration based on the "Revision of the Basic Plan for Computerization of the Administration," (approved at the Cabinet meeting on December 20, 1997) comprehensively and deliberately promotes policies of the kind described here. As for the work and activities of municipal public entities, the use of information technologies and telecommunications in their administration will be further promoted, as laid out in such documents as "A Guide for the Promotion of Computerized Administration in Municipal Public Entities," whose recommendation are as follows:

   - Use the Internet to improve public access to administrative information, through such means as electronic guides to administration information, timely presentation of information, and electronic presentation of increasing amounts of administration information such as statistics and reports.

   - Digitize procedures, ease regional restrictions, and promote expansion of access points to reduce the burden associated with filing applications with, or notifying municipal public entities. In addition, design solutions in the short term for matters such as verification of the originality of digital documents, authentication of senders and receivers, and methods of paying commissions.

   - For "One Stop Service," phase in a project that would provide various government services at every household or company computer terminal and at familiar access points, by first conducting a field experiment using Post Offices and other existing public facilities, taking steps to resolve systematic and technical problems revealed through these efforts.

   - Promote the use of information and telecommunications technologies which are consistent with those of the private sector through procurement procedures matched to progress in electronic commerce both domestically and overseas, including digitization of payments and receipts.

   - Promote the concept that systems for overall document management be maintained as versatile systems. This includes the system for data on budget requests which was the Kasumigaseki WAN and LANs, and electronic systems for public documents and other information.

   - Actively encourage conversion to outsourcing of information systems management, in step with the changing morphology of offices and enterprises, promoting simplified, efficient, and superior administration.

   - Comprehensively provide urban planning information, such as that relating to urban redevelopment and regional redevelopment, and move forward with information systems that can be used to obtain public opinions.

   - Investigate the creation and method of use of a Residents' Address Registration Network System and plan for the comprehensive usage of information and telecommunications in administration to encompass national and regional governments and municipal public entities.

   - As part of the effort to promote the use of information and telecommunications technologies in public enterprises, standardize and digitize every type of information including plans and specifications, and create an environment conducive to information exchange and sharing, initially for those involved with procurers and providers of public works, after introducing electronic procurement systems and maintenance management systems for public facilities.

2. Increasing the Use of Information and Telecommunications Technologies in the Culture and Sports Sectors
   　In response to the growth and diversification in cultural interests among the Japanese people, establish an environment in which information on cultural assets, works of art, local culture and performing arts becomes easier to access from within and outside Japan. At the same time, strive to create an environment that meets the expectations of a population demanding the diversification and growth of its sports activities.
   　The following types of measures will be comprehensively and systematically promoted.

   - Plan the preparation of a database of traditional regional culture and industry, including such items as historical legacies, to enhance information supply structures.

   - Promote and sponsor the analysis and collection of information related to sports science via facilities linked to national sports and science institutes.

3. Increasing the Use of Information and Telecommunications Technologies in the Research Sector (including Academic Research)
   　To enable sustainable economic growth for Japan in the future, we need to encourage development of the scientific technology that serves as the foundation for human intellectual capital formation. In addition, to provide academic information for researchers at universities both quickly and accurately and to plan for the dissemination of such information both domestically and overseas, a drive to ensure that basic academic information is well maintained is crucial. Thus, by promoting the use of information and telecommunications technologies in the research sector, a world-class environment for research and development will be established and maintained and a much higher standard of research will be targetable. In addition, we expect that pioneering research activities will accelerate the use of information and telecommunications technologies in the general community, and play a leading role in the realization of an advanced information and telecommunications society! ! ! .
   　Thus, the following types of measures will be comprehensively and systematically promoted.

   - Advancement of information networks that bridge the gaps between research institutions, ministries, agencies, and non-government research establishments, as well as increasingly sophisticated academic networks that link universities and other locations, is planned, along with the accelerated construction of networks based on international cooperation, which will effectively utilize the network resources of the Asian Pacific region.
   　All in all, these efforts will result in a substantial research information base about computers and promote the use of increasingly sophisticated university LANs. An ultra-high-speed network is also planned as a testing ground for research and development.
   

   - In addition to the preparation of a research information base, the promotion of higher levels of skills in the use and applied investigation of networks and high-performance computers will lead to new developments based on a balance between hardware and software.

   - In addition to enriching the quality and quantity of databases, including network-databases, and while promoting the active transmission of information resources, prepare an electronic library function in the libraries of universities and research institutes that will facilitate the distribution of information resources, in addition to providing precise guidance on the location of information resources and providing the potential for integrated searches.

   - Through the appropriate assistance of the Council for Science and Technology, deepen the collaboration and cooperation among all ministries, agencies, and organizations.

   - Along with a radical strengthening of research and development about the use of information and telecommunications technologies in research sectors, encourage the dissemination of research and development results about information and telecommunications networks.

4. Increasing the Use of Information and Telecommunications Technologies in Health, Medicine, and Welfare
   　In a low-growth society with fewer births and an aging population, improvements in services in sectors related to people's lifestyles, health, medicine, and welfare will be promoted through active use of information and telecommunications technology, helping to create a society in which all Japanese are able to enjoy the benefits of information and telecommunications.
   　The following types of measures will be comprehensively and systematically promoted.

   - Strive to establish a network for health-, medical-, and welfare-related information, such as health and safety information and information about the various services that can be used by residents, to achieve a system providing comprehensive services for regional areas.

   - Strive for improvements in the quality and efficiency of health, medical, and welfare services through means such as enhancing medical examination support systems, promoting an IC card system, and implementing a standard that would enable exchange of information between different sectors and between facilities.

   - Respond to the needs for new health, medical, and welfare services in remote areas and for in-home welfare services (such as in-home care), using multimedia technology. Also develop the necessary technologies for such services.

   - Facilitate the creation of a friendly environment free of information barriers, which gives sufficient consideration to the aged and the disabled, by developing information and telecommunications equipment and systems easily usable by such people.

   - Actively contribute to studies designed to achieve standardization of health insurance and medical information by international organizations.

5. Increasing the Use of Information and Telecommunications Technologies in the Road, Transportation, and Vehicle Sectors
   　Establish an integrated road and vehicle system using leading-edge information and telecommunications technology, and strive to promote the intelligent transport system (ITS), which is expected to have a significant socioeconomic impact by alleviating road transport problems, including congestion, traffic accidents, and environmental damage, as well as improving efficiency of distribution and enabling the creation of new industries.
   　The following types of measures will be comprehensively and systematically promoted.

   - Promote national coverage as well as greater sophistication of the vehicle information communication system (VICS) already in use.

   - Based on the general plan to promote the intelligent transport system (ITS), conduct research and development as well as empirical tests on ITS information and telecommunications technology for automatic toll collection systems, support for safe driving, optimization of traffic management, improved road management efficiency, support for public transportation, and improved efficiency of commercial vehicle usage. Also take steps to establish domestic and international standards for ITS, as well as to promote ITS usage in regional areas.

   - In relation to ITS, actively promote international cooperation, including exchange of information at international conferences and international standardization.

6. Increasing Use of Information and Telecommunications in the Public Transport Sector
   　Take steps to improve the convenience, safety, and efficiency of passenger and cargo transportation, using information and telecommunications technology.
   　The following types of measures will be comprehensively and systematically promoted.

   - Strive to improve the convenience of public transportation systems by promoting the introduction of multi-purpose electronic tickets which use wireless IC cards.

   - Strive to promote an information network providing necessary and beneficial information for the transportation of passengers and cargo.

   - By using EDI, strive to establish paperless, one-stop service for most procedures in use at harbors.

   - By preparing an aviation satellite system, strive to improve air traffic processing, thereby increasing the capacity of the air transport system.

7. Increasing the Use of Information and Telecommunications Technologies in the Disaster Prevention and Meteorology Sectors
   　Construction of an advanced disaster prevention information and telecommunications system will link government, municipal public entities, and the public and enable the rapid gathering and distribution of information allowing people to live at ease.
   　The following types of measures will be comprehensively and systematically promoted.

   - Promote the construction of an information and telecommunications system to gather and provide information whenever a disaster occurs, using satellite communications. Apply this system to the rapid collection and analysis of information related to weather, earthquakes, and tidal waves, and use it to supply accurate forecasts, warnings, and disaster-prevention weather reports about earthquakes and tidal waves over cable television lines and disaster-prevention administration radio.

   - Promote a state-of-the-art and comprehensive disaster prevention public information transmission system to ensure mobility if a disaster occurs.

   - Create a disaster prevention management system that permits the collection and distribution of disaster information through liaison between management staff of public facilities and local people.

   - Promote the preparation of an infrastructure that contributes to disaster prevention measures, such as a database for various kinds of disaster prevention information, an optical fiber network and its accommodation space in order to further enhance the management systems of public housing facilities.

   - Strive for improved weather observation and other functions through the establishment of a weather satellite system.

8. Increasing the Use of Information and Telecommunications Technologies in the Environmental Sector
   　By applying information and telecommunications technologies, promote the development and distribution of an environment information provision system for monitoring and forecasting changes in the global environment, and in so doing, expand collection, analysis, and distribution of information related to global environmental problems.
   　The following types of measures will be comprehensively and systematically promoted.

   - The preparation of a system for collecting and analyzing information related to the environment. By applying information and telecommunications technologies, promote the introduction and promotion of systems that involve research and development activities whose aim is to monitor the global environment, and to forecast global changes using simulation technology.

   - The development, introduction, and expansion of an information and telecommunications network for dissemination of environmental information, the preparation of environmental information databases and the improvement of information providing devices.

9. Increasing the Use of Information and Telecommunications Technologies in the Labor and Employment Sector
   　Using information and telecommunications technology, we will provide the public with timely information on work opportunities and offers as part of a comprehensive program of results-driven, efficient development of employment skills and comprehensive promotion of labor-related information. To reduce the burden of commuting and create a more relaxed lifestyle and an environment where men and women have more time to rear their children, we are conducting public and private trials involving various telecommuting methods to enable people to work at home or at satellite offices near homes. We are particularly interested in supporting SOHO (small offices, home offices), with a view toward revitalizing the economy and creating work opportunities.
   　The following types of measures will be comprehensively and systematically promoted.

   - Establishment of a system offering results-oriented employment information, using information and telecommunications networks in public employment-security institutions, promotion of results-oriented and efficient development of employment skills using multimedia equipment and telecommunications networks in employment skills development institutions.

   - Comprehensive provision of labor-related information through databases and other means.

   - Working toward the promotion of telecommuting by conducting polls on current situations and by providing information and helping establish community information centers and other facilities.

10. Promotion of the Establishment and Reciprocal Use of a Geographic Information System (GIS)
    　GIS offers great potential for applications in many areas, including the establishment of various types of administrative plans, environmental conservation, emergency medical services, disaster prevention, welfare, and crisis management. We will promote the establishment and joint use of a GIS through close coordination and linkage of the government, municipal public entities and the private sector.
    　The following types of measures will be comprehensively and systematically promoted.

    - Establishment of basic data about the territorial land mass (fundamental data about territory) essential to the creation of a GIS, and establishment of a data clearinghouse capable of searching for localized information to avoid overlapping investments.

    - Investigation of regulations concerning data control and distribution, such as the conditions for providing electronic data and the means needed to protect personal information. This will promote the fair provision, distribution, and joint use of GIS maps and other data.

    - Promote development of a decentralized GIS using the Internet and other telecommunications systems.

　In the wake of the dramatic development in information and telecommunications technologies, several existing regulations appear to be difficult or extremely inefficient to implement given the current technical standards. Awareness of these problems has led to investigations and revisions of several institutions, as stated in the former "Basic Guidelines on the Promotion of an Advanced Information and Telecommunications Society," and subsequently the "Advanced Information and Telecommunications Society Promotion Headquarters"( Report of the Working Group on Institutional Revision), the "Administrative Information Promotion Basic Plan" (approved at the Cabinet meeting on December 20, 1997), the "Deregulation Promotion Plan" (approved at the Cabinet meeting on March 31, 1995), and the "Deregulation Promotion 3-Year Plan" (approved at the Cabinet meeting on March 31, 1998). It is essential to promote further revisions of these institutions geared towards the public, bec! ! ! ause they will be the end-users of them. At the same time the goals of these institutions should be taken into consideration.
　To these ends, the following plans are to be promoted.

- Document preservation by conversion to electronic data form

- Conversion of statements and application procedures to electronic form while promoting paperless systems

1. Information Literacy Education for the Entire Population and Development of Human Resources to Support the Development of the Advanced Information and Telecommunications Society
   　We intend to work toward the creation of an environment that allows everyone to learn basic information management skills and to promote the education of specialized professionals who will support the development of an advanced information and telecommunications society. With respect to the latter, while it is important to improve operating and application skills for computers and other information devices, a correct understanding of the rules regarding intellectual property rights, security, and other issues is also vital in an advanced information and telecommunications society. Improvements in information literacy must be possible for all people, and must be promoted from several points of view, by means of the following policies.

   - Provide primary and junior-high school students with experience appropriate to their stage of development in using computers, information devices, and the Internet in all school activities, thereby improving their information management skills. Supplement high-school education with the use of advanced information applications.

   - Work toward supplementing the training of all education workers by providing with the basic knowledge and skills for using computers in their lessons through the use of satellite communications and other methods.

   - Provide more information-linked education research systems in careers departments in high schools, universities, post-graduate facilities, technical high schools, and specialist high schools, with the aim of fostering specialized professionals.

   - Train engineers and advanced researchers with high standards of information and telecommunications skills.

   - In the field of social education, provide local residents in regional areas with on-going learning opportunities involving information and telecommunications. In particular, consider improving the information management skills of people with few opportunities for learning due to their circumstances (e.g. housewives). Enhance the information and telecommunications skills of social educators during their training so that they can provide such learning opportunities.

   - Work toward the development and improvement of employment skills so that all workers in all fields can keep pace with information and telecommunications developments.

   - Make effective use of society's elderly members through social and corporate activities ,because they have specialist understanding of information and telecommunications.

2. Establishment of an Information Environment in Schools, Including Internet Access
   　As part of an education aimed at developing rounded personalities, learning opportunities tailored to the character of each child should be provided and greater creativity, active thought, and expression skills should be cultivated through appropriate use of computers and other devices, the Internet and other networks, databases, and other tools in keeping up with the progress of an advanced information and telecommunications society. Create an environment promoting the use of Internet-connected computers in primary and junior-high schools. Promote an education system that uses these tools, and by enriching information education in this way, foster the corps of skilled people who will support coming generations. Further enhance education methodologies and expand education opportunities through distance education and regional education activities.
   　In the area of social education, make efficient use of satellite communications and other networks to create flexible educational opportunities for the diverse learning needs of different regions.

   　The following types of measures will be comprehensively and systematically promoted.

   - Step up efforts to provide computers and other information devices, software, Internet access, and other tools at all education establishments

   - Promote the reduction of Internet usage fees for education establishments to allow full Internet access in primary and junior-high schools

   - Establish a curriculum for information education

   - Establish LANs in institutions of higher education and inter-university satellite communications networks

   - Improve systems for providing information in public educational facilities such as libraries and museums through the building of networks, databases, and multimedia systems.

　If we are to accelerate the promotion and establishment of an advanced information and telecommunications society for the early 21st century, we must build a sophisticated data communications infrastructure capable of supporting the creation, distribution, and sharing of information and knowledge.
　This goal calls for a seamless interconnected network infrastructure (e.g. next-generation Internet infrastructure, fiber-optic networks, and global-reach mobile communications system) as a foundation to support the "digital revolution," as well as the conversion to digital broadcast systems to create a "Total Digital Network." This will require further technological developments.
　To promote the establishment of an information and telecommunications network infrastructure, we will give full consideration to implementation of lower fees, prevention of geographical imbalances, alleviation of vulnerability to disaster, and evolution of trends in foreign countries. In principle, the private sector should take the lead under conditions of fair and effective competition. However, in cases where huge investments exceeding conventional commercial requirements are needed on short time scales, government support will be necessary to encourage private investment. A variety of equipment will be necessary to cope with various types of terrain, some of which are prone to disasters, taking into account the advantages and disadvantages of certain infrastructures, such as above-ground cable or satellite cables.
　The following types of measures will be comprehensively and systematically promoted.

- We will strive to deploy a nationwide fiber-optic network by the year 2005.
　To complement the subscriber-type fiber-optic network, we will prepare the foundations for a practicable high-speed subscriber-type radio-access system by the year 2000.

- Based upon the principle that a fiber-optic network should be established under the private sector's initiative to promote a reduction in the burden on carriers, to make greater use of public facilities such as roads, waterways, and sewer systems, and allow private enterprises to use fiber-optic networks for public facility control and their accommodation space (for example, information boxes)

- To safeguard Information and telecommunications networks against earthquakes and other disasters, promote the use of underground telephone lines and other communication lines by providing public funds and promote the use of shared telephone wire conduits in order to realize safer and smoother transport systems and more pleasing landscapes.

- Promote research and development in next-generation telecommunications and broadcasting systems using satellites and airships anchored in the stratosphere (stratospheric platforms)

- Promote the standardization, research, and development necessary for the introduction of new mobile communications systems, such as next-generation mobile phones that can be used overseas, to allow the sending and receiving of simple video images.

- Promote the safety and reliability of an information and telecommunications network. Strive to ensure an environment in which radio waves are safe for humans, all types of radio devices, and electronic and medical devices.

- Promote the digitization of all broadcast media. This is expected to diversify and enhance media-related services, improve radio wave utilization efficiency, and have major economic ripple effects. With respect to the key above-ground broadcasting media, establish a system that will permit digital broadcasting to begin by the year 2000 and promote an environment that enables a smooth nationwide switchover to digital broadcasting. Finally, promote the spread of and advances in cable TV as an important and comprehensive information and telecommunications medium for regional areas.

　The government will promote basic research and development to facilitate the installation of the network infrastructure and the development of new services through private companies' ingenuity, as well as provide results-oriented incentives that will not affect the balance of competition in advanced and creative hardware- and software-related research and development undertaken by private companies.
　Information and telecommunications technology has a wide range of applications in many sectors. Such technology does more than merely promote developments in the information and telecommunications industries. We need to consider information use in industrial and social fields such as electronic commerce, in simulation technologies employed to predict climatic changes, and in information and telecommunications technology that facilitates research, contributing to greater advancement and efficiency in a diverse range of industries, as well as in private life and in finding solutions to global environmental problems.
　In this way, R&D on information and telecommunications technology addresses global issues and breaks down borders. It is vital that the government consistently promote this crucial source of industrial and economic growth.
　Growing use of the Internet means that persons in research and development must stay abreast of constantly-advancing technological trends. This includes the development of ways to create a faster next-generation Internet system.
　The policies required to meet these needs are being planned, with consideration of the following points:

- The need to encourage a competitive attitude among the wide variety of major R&D bodies in order to promote more diversified, results-driven, creative technologies.

- In order to establish an advanced information and telecommunications society, it is necessary to commercialize R&D results, thereby fostering greater advances and efficiency in industry, communities, and personal life. At the same time, these results must also be related to the creation of new industries and new employment opportunities through the growth of venture companies and other activities.

- To facilitate the commercialization of R&D results, we must recognize the efficiency of the method used by Western nations, namely, that of providing an incentive for commercialization by ensuring that research results remain the intellectual property of the developer.

- Promote truly effective links among industrial companies and the academic world based on mutual recognition of the technological potential of universities and national research centers and the needs of industry.

- Promote international cooperation in research and development.

- Make experimental ultra-high-speed networks widely available to the private sector as testing grounds, and promote R&D on technologies that will form the core of the ultra-high-speed networks of the 21st century.

　As we move toward an advanced information and telecommunications society with increased convenience in private life, high-tech crimes that exploit information and telecommunications technology, unauthorized access, violations on privacy, and other kinds of wrongdoings are also increasing. To establish an advanced information and telecommunications society, we must take appropriate actions to deal with this darker side of technological progress, including the establishment of safety and privacy protection measures by industry and the implementation of government regulations in accordance with the types of information. The prevention of high-tech crime was recognized as a particularly important topic by all developed countries at the G8 Summit. International concern is growing, and the EU has adopted Directives on privacy protection for the information and telecommunications sector.
　We will implement the following responses to these issues.

- Promotion of computer anti-virus measures and development and diffusion of encryption technologies in the information and telecommunications sector.

- Giving priority to investigating necessary technical subjects and legal systems required to prevent unauthorized access.

- Investigation of legal means, if required, to prevent inappropriate use of encryption technologies.

- Enhancement of guidelines on handling of personal information in order to promote its more appropriate control in private companies, and investigation of suitable means to promote international agreement on protection levels for personal information.

-Immediate investigation of required preparations for law enforcement bodies, and encouragement of dialogues with industry, with a purpose of taking decisive actions against high-tech crimes.

- Immediate investigation of the requirement of a legal system that limits online anonymity, so that individuals who invade privacy on networks by such means as posting other people's personal information on electronic bulletin boards can be identified.

　To advance information and telecommunications in our social system, we must improve hardware performance and secure an abundant supply of high-quality software. The creation of an even wider range of software than that currently available is also essential, because of the diffusion of information and telecommunications into all corners of society.
　In order to achieve this goal, the government should strive to develop a software industry that supplies a diverse range of advanced software.
　Based on these requirements, we should implement the following policies:

- Promote the establishment of an environment that allows easier access to capital for software venture companies with low financing abilities.

- Establish a software market environment that ensures a supply of high-quality software, by creating criteria for appropriate price setting, and by developing the required distribution systems.

- Become actively involved in the development of basic software technologies required for diverse applications.

　The explosive expansion of the Internet and the increase in the number of channels available through digital broadcasting, along with the growth in diversified, large-capacity media for an advanced information and telecommunications society, has created a greater need for quantitative and qualitative enrichment of Content.
　To achieve quantitative and qualitative enrichment of content, we need to provide sufficient protection of authors' rights and existing copyrights while allowing smooth access, thereby promoting re-use and multifaceted use of existing content.
　To ensure a diverse supply of content, we must also develop multimedia specialists and create an environment conducive to the production of content. 　Moreover, must establish content production and usage systems aimed at youth education.
　Based on these goals, we plan to implement the following policies:

- Create an environment that allows content producers ready access to capital.

- Create an environment favorable to production and distribution of contents through provision of relevant information, enhancement of facilities for shared use, and technical R&D.

- In order to promote smooth distribution of high-quality content, create appropriate transaction procedures , such as clarification of agreement and copyright processes for content production and distribution; establish systems that provide information on available copyrights to suit user needs; and encourage the development and establishment of electronic watermark technology and other rights-protection technologies.

　The assurance of interoperability and interconnectivity for a variety of devices and systems is the basis of efficient performance of general and specific tasks by corporate and individual users via information and telecommunications networks - hence the growing significance of this issue.
　Apart from public standards, other standards in the information and telecommunications sector exist as de facto standards created by major bodies such as private consortiums and individual companies. We need to examine our response to this state of affairs.
　We must consider ways of improving convenience not only for providers of the system and services but for users, emphasizing the need to maintain an open interface while conforming to the standards set by international standardization organizations such as ITU and ISO. We must also encourage the swift and smooth public adoption of de facto standards by promoting interoperability and interconnectivity through private and public cooperation.
　Given the above, we plan to implement the following policies:

- Swift and timely promotion of international standardization, in keeping with the speed of technological developments

- Promotion of research and development to support international standardization

- Promotion of public adoption of de facto standards using rapid procedures

- Promotion of greater development and propagation of public standards

- Promotion of use of open interfaces in public systems

(1) International Contribution to Establishing the Institutional and Technical Environment of Electronic Commerce

　International efforts to create an advanced information and telecommunications society have passed the development stage aimed at constructing a global information infrastructure (GII) and have switched to activities aimed at realizing a global information society (GIS). Since electronic commerce is essentially global and constitutes the core of a global information society, rapid progress has been made in international debate concerning the laying of foundations for this global information society, including the drawing up of international rules. Japan has accumulated a significant amount of knowledge and technological sophistication through mainly private-sector activities such as trials and drawing up of various model rules. For example, in a recent report by the Working Group on Electronic Commerce entitled 'A Japanese Initiative in promoting Electronic Commerce,' A policy for promoting electronic commerce is clearly stated. In the future, in the various fora o! ! ! f international debate, based upon clear explanations of factors such as Japanese cultural values and commercial practices, Japan must make the greatest possible contribution to the creation of international regulations.
　In debates taking place in international fora, it is crucial that Japan maximize its contribution. Japan should also encourage fellow nations to ensure that the same ground is not needlessly covered in different fora, so that limited resources may be used to the greatest possible effect. In its participation in such debates, Japan must consider the following points:
　In its dealings with the OECD and bearing in mind work in other areas of the OECD Action Plan, Japan must work on the agreement achieved at the OECD Ministerial Conference on Electronic Commerce held in Ottawa this past October, which pinpointed six main topics: protection of privacy, electronic authentication, consumer protection, taxation, access to the information and telecommunications infrastructure, and problems related to the socioeconomic impact of electronic commerce. With respect to electronic signatures and parallel issues, debate in UNCITRAL concerning the legal aspects of electronic commerce needs to be taken one step further. If necessary, Japan must try to ensure that the characteristics of the Japanese legal environment are taken into account.
　In the WTO, progress is being made in debates concerning the trade aspects of electronic commerce. In its participation in such debates, Japan should aim at the clarification of issues regarding tariffs, as well as the creation of an environment in which the free distribution of goods and provision of services by electronic means are protected as much as possible, and electronic commerce is promoted still further.
　The APEC is a gathering of countries and regions extremely diverse in terms of culture, language, history, and stages of social and economic development. While debate continues concerning the expansion and promotion of electronic commerce within Asia and the Pacific region, the countries involved differ considerably with respect to factors such as the availability of information and telecommunications infrastructures. In continuing the debate, this is an important point to keep in mind. Japan should be fully aware that it is an integral member of Asia and the Pacific region. In addition, Japan must recognize that it occupies a position where it is expected to play a leading role in drawing out the potential of the Asian market. Japan should actively share its knowledge regarding electronic commerce, thereby contributing to 'bottom-up' development.
　In addition to discussions with multiple countries (regions), bilateral discussions are also very effective. In May of this year, the governments of Japan and the United States issued a joint statement on electronic commerce, signaling agreement between the Japanese and US governments on policy directions for basic principles and individual issues in electronic commerce. Agreement on future guidelines between Japan and the US, who are key players in the international community, will greatly affect not only the dialog between the two countries, but also international debate. In the future, Japan must try to ensure that the various opinions included in the joint statement are reflected in international debate, and actively engage in dialogue with other countries and regions.

1. Activities Aimed at Constructing a Global Information and Telecommunications Infrastructure
   　Given that information and telecommunications play a vital role in realizing sustainable economic and employment growth, and in responding to global environmental problems, all nations have implemented measures aimed at creating an advanced information and telecommunications society. In February 1995, at the G7 ministerial meeting held in Brussels, an agreement was reached regarding the basic principles and concrete policy issues required for the realization of an advanced information and telecommunications society and for the promotion of international joint projects. Activities are now underway, in line with the concept of a global information and telecommunications infrastructure, to attempt to create an advanced information and telecommunications society on a global scale.
   
   
2. Need for Global Commitment
   　To realize a truly global information and telecommunications society, levels of information and telecommunications must be improved in both advanced and developing nations. To make this possible, the governments of advanced nations must devise appropriate cooperation policies. We must aim to build an open, seamless information and telecommunications network, which allows the international interconnection of diverse information and telecommunications terminals and networks and enables the use of various information and telecommunication services. Each country must develop its domestic policies based on a common global vision. We must continue to develop a system for smooth policy cooperation and information exchange, which encompasses international organizations such as ITU and ISO. Specifically, we should promote private-sector investment, broader scope for free competition, and the revision of regulations based on the results of technical innovation. In particul! ! ! ar, it is necessary to participate fully in the activities of the ITU, because it is currently tackling issues such as standardization measures, international frequency adjustment, and support for developing nations that will be necessary for the construction of a global information and telecommunications infrastructure. In cooperation with the ISO, Japan must also play an active part with respect to standardization of IC cards, multilingual information processing, and evaluation of encryption, authentication, and security technologies. Japan's participation in demonstrations based on international joint projects will clearly demonstrate what results may be achieved using information and telecommunications. Japan also aims to contribute to a globally-balanced information and telecommunications infrastructure by making its information and telecommunications technology and expertise available to developing nations.
   　To ensure interoperability and interconnectivity, Japan must not only participate in activities in public international standardization organizations and in international activities related to de facto standards, but must also push forward with R&D and actual experiments involving interoperability and interconnectivity. In Asia and the Pacific region, Japan intends to take the initiative in standardization activities for ensuring interoperability and interconnectivity through the Asia Pacific Telecommunications (APT) Community.

　In addition to debate in international fora focusing on rule-making, the G8, APEC, and APT are implementing international joint projects aimed at promoting developments such as international electronic commerce and the construction of a global information and telecommunications infrastructure, and identifying problems. We need to participate in these projects, accumulating knowledge in the process.

　The development of global computer networks means that prevention measures against high-tech crimes by one country alone are no longer effective. As international cooperation is necessary, Japan needs to become involved in the following activities:

- Active participation in debates on the nature of cooperation in international criminal investigations and cooperation between legislative organizations.

- Promotion of dialogue between industries and governments regarding high-tech-crime prevention measures that will contribute to the positive development of an advanced information and telecommunications society.

(1) Immediate Goals

　The goal of advancing information and telecommunications technology, which is expected to have an extensive economic ripple effect and to provide the development foundation for the 21st century, coincides with the cabinet plan for economic recovery within a few years, and with the 'Action Plan for Reform and Creation of Economic Structure' (approved at the Cabinet meeting on May 16, 1997), the aim of which is to elevate the Japanese information and telecommunications infrastructure to world-class levels by the year 2001 through intensive measures. Based on the three action principles of these Basic Guidelines, the following four points, which are particularly important in promoting the construction of an advanced information and telecommunications society, define Japan's current goals:

1. Conduct necessary studies on issues that should be resolved and formulate necessary measures to enable the full-scale implementation of electronic commerce. 2. Actively promote the use of information and telecommunications in the public sector. 3. Promote the advancement of information literacy and the development of human resources that will support the development of an advanced information and telecommunications society. 4. Utilizing the vitality of private enterprise, encourage the installation of a basic information and telecommunications infrastructure that is conducive to widespread implementation of electronic commerce and meets increasingly sophisticated, diverse, and personalized information and telecommunications needs.

　As in the past the government will implement a follow-up of these Basic Guidelines at the Advanced Information and Telecommunications Society Promotion Headquarters and in advisory meetings, as follows:
1. Once the action plan has been drawn up, the Cabinet's Councilor's Office on Internal Affairs will receive annual progress reports. With the cooperation of ministries such as the Ministry of Posts and Telecommunications and the Ministry for International Trade and Industry, the Cabinet's Councilor's Office on Internal Affairs shall compile a report on the overall state of implementation of information and telecommunications policies based on these Basic Guidelines, and report to the Advanced Information and Telecommunications Society Promotion Headquarters.
2. The Advanced Information and Telecommunications Society Promotion Headquarters shall not only publicize reports from the Cabinet's Councilor's Office on Internal Affairs, but also take necessary measures based on the opinions of advisors.

　In light of the rapid evolution of information and telecommunications technology, we will review these guidelines and revise them no later than the end of fiscal year 2001.