Year 2000 Problem Readiness Status

(Provisional Translation)

October, 1999
Cabinet Secretariat Y2K Office

In line with the 'Year 2000 Problem Action Plan' (as adopted by the Advanced Information and Telecommunications Society Promotion Headquarters, 11th September, 1998), central government ministries and agencies, semi-government organizations, local government bodies and the private sector have been pushing ahead with measures to ensure their readiness to cope with the year 2000 problem. Also, the state of progress has been reported at the 'Y2K Measures Promotion Conference' and 'Advisors' Conference', set up within the above mentioned Headquarters, every quarter for the last five quarters, based on the quarterly reports of the competent ministries and agencies. With just two months remaining until the year 2000, this report presents a summary of the final quarterly reports of the ministries and agencies, as well as a summary of the status of preparations for the management of crises during the New Year period.

(Overview of readiness status)

  1. Status of system inspections, etc., in critical private sector fields.

    (1) In critical private sector fields, inspections of computer systems have been carried out, as per the 'Action Plan'. Following is an overview of the situation.

    ‡@Critical private sector fields.
    Finance: All major banks, regional banks, and second-tier regional banks had completed major systems corrections and dry-run tests by the end of September.
    Electricity: By the end of September, corrections and dry-run tests for major control systems were 99.5% complete. The remainder of the work is scheduled to be completed by mid November.
    Telecommunications: Corrections and dry-run tests on telephones and other major communications systems were completed by the end of September.
    Aviation: All airlines operating scheduled flights had completed corrections and dry-run tests on major systems by the end of September. Corrections and dry-run tests on air traffic control systems were completed by the end of June.
    Medical care: Corrections and dry-run tests, on medical equipment containing microchips (8,602 items) were 94% complete by the end of September. Of the major medical institutions (2,281 institutions), as of the end of September, around 50% had completed corrections and dry-run tests. The remainder are scheduled to be completed by the end of November.
    Water supply: All water companies have completed corrections to major control systems, and 96% of water companies have completed dry-run testing. The remainder are scheduled to be completed by the end of November.

    ‡A Readiness of central and local government bodies, etc.
    ? Corrections and dry-run tests on the major systems of central government ministries and agencies and semi-government organizations, etc., have largely been completed and the remainder will definitely be completed within the year.
    ? In all urban and rural prefectures, cities and villages, etc., corrections to important systems are more than 95% complete. The aim is for practically all of the remaining systems to be corrected within the year.

    ‡B Small and medium sized enterprises
    The results of a survey undertaken in early October suggest that, among small and medium sized enterprises, 92% of administrative systems and 85% of devices with built-in microchips used as manufacturing equipment, etc., have been made ready, or are undergoing such work.

    (2) As can be seen from the foregoing, preparations for Y2K readiness in the critical private sector fields are well under way, as per the 'Action Plan'. Therefore, it is highly unlikely that there will be any significant problems the social infrastructure due to year 2000 problems, such as suspension of services, etc., on a scale that is likely to impact daily life in any serious way. However, it is still very important that steps be taken in preparation for unexpected problems, however unlikely, that might impact daily life in a minor or short-term fashion, from time to time. Also, within the remaining time, in order to ensure that every effort is made to complete preventive measures and crisis management readiness, central and local government bodies and the private sector alike should avail themselves of every opportunity to test their systems and endeavour to ensure that their crisis management plans are as complete and comprehensive as can be.

  2. Preparations for the New Year period

    Based on the foregoing, the government is working with local government agencies and the private sector to reinforce crisis management systems as we approach the New Year period, and to provide pertinent information.

    (1) Strengthening of crisis management systems

    ‡@Over the New Year period, in order to gather and disseminate information on what is happening at home and abroad, and to make doubly sure that the crisis management systems are capable of covering any eventuality, an information network will be set up, with the Prime Minister's Residence Crisis Centre as the hub. Therefore, as part of the preparations for an information network that will operate through the cooperation of government and private sector, dry-run training has been conducted. (First training, 8th September)
    ‡AIn order to respond to the status of service in critical sectors, failure of vital equipment, etc., and to be able handle queries regarding local information over the New Year period, the private sector, local government bodies and central government will cooperate in the setting up of information desks.
    ‡BOver the New Year period, operating inspections, etc., will be conducted on central government's main systems.

    (2) Strengthening information provision

    Since the adoption of the 'Action Plan' in September of last year, efforts have been underway to increase public awareness of the year 2000 problem through a variety of media. From now, every effort will be expended to disseminate the following types of pertinent information through the government's public information offices and the mass media, etc.

    ? Progress reports on the status of Y2K readiness in critical private sector fields.

    ? Public and private crisis management readiness over the New Year period.

    ? Public information regarding 'Guidance for the Y2K Preparations for the New Year Period'.

    ? Explanation of matters of concern to the general public,
    etc.

I. Status of system inspections, etc., in critical private sector fields

  1. Status of Y2K readiness in critical private sector fields, etc.

    (1) Finance

    * By the end of September, 99% of all financial institutions, etc., had completed corrections and dry-run tests on their major systems overall. In particular, all major banks, regional banks, and second-tier regional banks had competed their corrections and dry-run tests by the end of September.
    With regard to settlement related systems, joint dry-run tests have been conducted six times since December of last year in order to test the settlement and transaction systems of the BOJ-NET, Zengin (Federation of Bankers' Associations of Japan) system and the Tokyo Securities Exchange, etc. Also joint confirmation tests are due to be run on 2nd January, 2000.

    * The crisis management plan is largely completed, and dry-run tests, etc., are now being conducted to verify the content of the plan.

    (2) Energy

    ‡@Electricity:
    * Corrections and dry-run tests on 99.5% of major control systems had been completed by the end of September, with the remainder due to be completed by mid November.
    * Because the microchips and other devices that have direct control functions over power supply at atomic and other power stations do not use date data, there is no danger of interruption to the power supply.
    * With regard to atomic power stations, a third party committee was formed of external experts and conducted cross checks from a specialist and neutral standpoint. The results of these tests confirmed that there is no danger of any interruption in the safe and stable operation of power stations, due to year 2000 problems.
    * All power companies have adopted crisis management plans.
    ‡ACity gas:
    * Corrections and dry-run tests on the major control systems of large city gas suppliers were all completed by the end of September.
    * Date data are not used in microchips, etc., in the production and supply of gas, so there is no danger of any problems with regard to supply or safety.
    * All gas companies have adopted crisis management plans.
    ‡BPetroleum:
    * Petroleum manufacturers and wholesalers are due to complete all corrections and dry-run tests on major control systems by the end of October (98% complete as of end of September).
    * All operators have adopted crisis management plans.

    (3) Communications

    ‡@Telecommunications:
    * Corrections and dry-run tests on the major systems of communications systems, such as telephones and private leased circuit, were completed by the end of September.
    * Interconnection tests, in which 65 type I carriers participated, were completed by the end of September.
    * All major carriers have adopted crisis management plans.
    ‡ABroadcasting:
    * Corrections and dry-run tests have been completed (98% as of end of September) on all major control systems, except in cases where this was not possible due to equipment renovations, etc. In conjunction with equipment updates from October onwards, dry-run tests are scheduled to be completed soon.
    * All major operators have adopted crisis management plans.

    (4) Transportation

    ‡@Aviation:
    * All 12 airlines operating scheduled flights completed corrections and dry-run tests on their major systems by the end of September.
    * All of the above mentioned carriers have adopted crisis management plans.
    * Corrections, dry-run tests and crisis management plans for air traffic control systems were completed by the end of June.
    * On 13th September, a demo flight was arranged in order to test linkage between air traffic control and aircraft, and tests were run on 27th September, in order to check linkage between air traffic control and NTT's communications equipment.
    ‡ARail:
    * 37 major railway companies have completed corrections and dry-run tests on their major control systems.
    * All of the above companies have adopted crisis management plans.
    ‡BMaritime transport:
    * The 57 major coastal and ocean-going and passenger vessel operators will complete their corrections and dry-run tests on major control systems by the end of October.
    * All of the above operators have adopted crisis management plans.
    * Steps are being taken to ensure that steering devices and other important machinery can be operated by hand when the date rolls over to 2000.
    * At seven major ports, the major operators have all but completed their preparations, including the adoption of crisis management plans. Further, the companies involved have set up communication meetings in order to establish and maintain communications with each other.
    Reference
    Accident Prevention Plans

    (1) Requests directed to maritime-related industries
    ‡@ Ships which have yet to comply with the precautionary measures against the Y2K problem are requested to refrain from going out to sea in the congestion area during the special alert period. (31 Dec. 1999. 21:00 - 1.Jan. 2000. 21:00)
    ‡A Ships or port terminals which have yet to comply with the precautionary measures against the Y2K problem are requested to refrain from transporting/handling dangerous cargo.
    ‡B Give other necessary warnings on shipping and transporting with regard to the Y2K problem.

    (2) Legal measures
    ‡@ Control the launching of ships which have yet to comply with the precautionary measures against the Y2K problem onto sea routes during the special alert period
    ‡A Prohibit the ships which have yet to comply with the precautionary measures against the Y2K problem from using the ports at night during the special alert period
    ‡B Prohibit the ships or port terminals which have yet to comply with the precautionary measures against the Y2K problem from transporting/handling dangerous cargo
    * The level of compliance of each ship and port terminal should be examined using the "IMO Circular 2121". (Self reports on corrections made to the system and the preparation of a crisis management plan should also be the subject of examination.)

    (5) Medical care
    * Out of 8,602 items of medical equipment that contain microchips, 8,101 (94.2%) were confirmed to have no problems whatsoever, and other necessary preparations, such as corrections and dry-run tests on systems, have completed. Tests, etc., on the remaining 501 items (5.8%) are due to be completed by the end of November.
    * Of the major medical institutions (2,281 institutions), as of the end of September, some 49.3% had completed corrections and dry-run tests, and 35.6% had completed the adoption of crisis management plans. However, the remainder of these institutions are scheduled to have completed their readiness preparations by the end of November.

    Reference
    Measures for medical institutions
    Measures for important medical institutions
    ü Ensuring thorough instructions
    - Instructions should continue to be given through medical surveillance to those medical institutions which have yet to complete the simulation and prepare a crisis management plan, in order that they complete such preparations by the end of November. Also, each prefecture should investigate the state of compliance with the precautionary measures against the Y2K problem at the major medical institutions and report it to the Ministry of Health and Welfare by November 19. Those institutions that have yet to comply with the measures should be individually instructed (by the Ministry when it is necessary).
    - A conference attended by the divisional manager of the Y2K problem for medical institutions in each prefecture should be held in the middle of November.
    - The level of compliance as of the end of November at each major medical institution should be published (at the beginning of December). [The names of all major medical institutions should be published on the Ministry of Health and Welfare homepage (at the end of October)].

    (6) Other

    ‡@Water supply:
    * By the end of September, all water supply operators had conducted corrections on the major control systems affecting the water supply, and 96% of operators had implemented dry-run tests. All operators have already completed correction and dry-run tests on major administrative processing systems.
    * 94% of operators of major water supply systems have completed adoption of crisis management plans. The remaining operators are due to have completed their readiness preparations by the end of November.
    * Also, major water supply facilities can be easily switched to manual operation in the event of a breakdown in operations, so that there should be no interruption to the water supply.
    ‡AEducational institutions:
    * Corrections and dry-run tests on the major systems of state schools, private schools and educational enterprises under the jurisdiction of the Ministry of Education, as well as the adoption of crisis management plans, will be largely completed by the end of November.
    * Through the education committees in urban and rural prefectures, cities and villages, primary, junior high and high schools will continue to receive instruction and advice on preventive measures and crisis management.
    ‡BIron and steel industry:
    Blast furnace operators will have completed corrections and dry-run tests on major control systems by the end of October. Further, the iron and steel industry has long had countermeasures in place in the event of trouble caused by power failure, and these and other crisis management plans have already been adopted.
    ‡CChemical industry:
    Major companies in the chemical industry will complete corrections and dry-run tests on their major control systems by the end of November. Further, with regard to crisis management plans, these are due to be adopted by the end of October.
    ‡DNuclear fuel facilities:
    Reprocessing plants, nuclear fuel processing plants and other major facilities using nuclear fuel will have completed corrections, etc., on their systems by the end of October.

  2. Small and medium sized enterprises
    * A comparison of the readiness status of small and medium sized enterprises with administrative systems shows that, compared with three months earlier, the number of enterprises that have 'completed' or are 'now working' on readiness countermeasures has increased significantly from 79% to 92%.
    * Readiness countermeasures implemented for devices with built in microchips that are used in the control of manufacturing equipment, etc., has risen from 66% to 85% over the last three months.

  3. Readiness measures taken by central and local government bodies, etc.

    (1) Government ministries and agencies and semi-government organizations

    ‡@Government ministries and agencies and special government enterprises, other than medical institutions
    Dry-run tests and crisis management plans were completed for 98% of major systems (545) by the end of September. The remainder are scheduled to be completed by the end of November.
    ‡AMedical institutions
    * Dry-run tests had been completed on 93% of major systems (1,243) by the end of September. Updates, etc., on the remaining systems are certain to be completed by December. Crisis management plans have been adopted for all systems.
    * Dry-run tests and crisis management plans for 177,387 items of critical medical equipment had been largely completed by the end of September, with the exception of that cannot be tested because they do not have a date input function. (With respect to those items of equipment for which a dry-run test was not possible, crisis management plans have been adopted.)

    (2) Local government bodies

    ‡@Urban and rural prefectures
    * In the urban and rural prefectures, correction work on 98% of all affected systems has been completed, and dry-run tests done on 94% of affected systems. Corrections and tests on the remainder are certain to be finished within the year.
    * Crisis management plans have been adopted for 99% of affected systems.
    ‡ARegional cities and other municipalities
    * In regional cities and other municipalities, correction work has been completed on 95% of the affected systems. Dry-run tests have been completed on 83% of the affected systems. Almost all of the remaining systems are certain to be completed within the year.
    * Further, with respect to crisis management plans, 47% of the affected systems have been covered, but plans are certain to be adopted for almost all systems within the year.

II. Readiness for the New Year period

The government, based on the foregoing and the 'Measures for the strengthening of crisis management system', adopted on 30th July of this year, will be taking the following measures to ensure readiness over the New Year period.

‡@Over the New Year period, regardless of whether or not there are any major events, in addition to gathering and publishing information on what is happening at home and abroad and providing information to international organisations, etc., in order to make doubly sure that the crisis management systems are capable of covering any eventuality, an information network will be set up, with the Prime Minister's Residence Crisis Centre as the hub.

‡ASince the adoption of the 'Action Plan' in September of last year, efforts have been underway to increase public awareness of the year 2000 problem through a variety of media, as well as reporting on the progress of measures toward year 2000 readiness in the critical private sector fields, etc., and the explanation of matters of concern to the general public. From here on, efforts will be made to reinforce the provision of information, including updates on both governmental and private sector crisis management readiness as the year end approaches, as well as the level of preparedness of the general populace.

Specifically, these efforts will include the following.

  1. Strengthening of central government systems, etc., to handle crises in the run-up the New Year period

    (1) Strengthening systems
    ? In order to coordinate the implementation of the measures to reinforce crisis management systems, the 'Year 2000 Problem Task Force (chaired by the Deputy Chief Cabinet Secretary) was set up within the 'Promotion Headquarters'(30th July). Further, in order to strengthen Y2K readiness within the Cabinet Secretariat, a Y2K office was set up within the Cabinet Councilors' Office on Internal Affairs (30th July), as the secretariat of the Task Force.
    ? Y2K offices have been established within all concerned ministries and agencies, in order to ensure that all relevant internal and external information is gathered and disseminated.
    ? The Ministry of Home Affairs has requested that all local government bodies formulate crisis management systems, in line with the ' Guidelines for the adoption of crisis management plans for local government bodies'. In accordance with this request, all urban and rural prefectures have established task force headquarters across all agencies. In the regional cities and other municipalities also, as of September, 1999, task force headquarters have been established in around 60% of bodies and organisations, and task force headquarters are scheduled to be established in over 90% of regional cities and other municipalities by the end of the year.
    ? In the critical private sector field also, crisis management plans have already been adopted by the major companies, etc., and these are being used as the basis for the preparation of crisis management systems. Also, in the information field, hardware supplier members of the Japan Electronic Industry Development Association (JEIDA) are ready to adopt a 100,000 person strong crisis management system, and the Japan Information Service Industry Association (JISA) aims to forge a user support system comprised of some 500,000 software suppliers and staff.

    (2) Provision of a joint government and private sector information network
    ? In order to provide for the smooth gathering and dissemination of information over the New Year period, preparations are under way on a new information network that will operate between the Cabinet Secretariat and competent ministries and agencies, between competent ministries and agencies and critical private sector fields such as finance, energy, etc., and between the Ministry of Home Affairs and local government bodies, etc. This new network will complement the existing emergency communications network for the prevention of disasters, etc.
    ? The first dry-run test on the above mentioned joint government and private sector information network was run on 8th September. There are plans to hold as many tests as possible before the end of the year.

  2. Specific measures for crisis management over the New Year period

    (1) Gathering of pertinent information, action in the event of an emergency, etc.
    The above mentioned systems and information network will be utilised to ascertain accurately and effectively the situation with regard to any social impact from Y2K related incidents occurring in Japan, and to disseminate the information, as well as to ensure that the most appropriate action is taken in response to any serious incidents occurring during this period. Responsibilities within the system will be allocated as follows.

    ‡@Action to be taken by Cabinet Secretariat and competent ministries and agencies
    The Y2K Task Force is the nucleus of the government's crisis management setup, and the requisite systems will be established at the Prime Minister's Residence Crisis Management Centre, with the ministries and agencies working from their own Y2K Task Force offices to gather and disseminate internal and external information, report back to and maintain contact with the Cabinet Secretariat and take the necessary action in the event of an emergency.
    ‡AGathering of overseas reports and information, etc.
    The Ministry for Foreign Affairs will work in cooperation with the Cabinet Secretariat and competent ministries and agencies to put in place a system that will be able to provide information on incidents occurring within Japan to the International Y2K Cooperation Centre within the UN and to diplomatic establishments at home and abroad, and will gather information on incidents occurring overseas via diplomatic establishments at home and abroad and the International Y2K Cooperation Centre.
    ‡BSupport for action taken by local government bodies ‡CInternational information exchange among specialists in the critical private sector fields, etc.
    At the APEC summit in September of this year, the 'APEC Y2K 100 Days Cooperation Initiative' was adopted. Based upon this agreement, preparations are being made for the establishment of a system that will enable international exchange of information over the New Year period among experts and specialists from administrative organisations and private sector groups and organisations in the critical private sector fields, and overseas experts and specialists.

    (2) New Year period operation inspections of major systems of central government ministries and agencies

    ? Based on the 'Measures for the strengthening of crisis management system', the central government ministries and agencies will run tests on those systems that will operate over the New Year period, in order to ascertain their operating statuses after the New Year, and to ensure correct start-up.

    ¥ Additionally, the ministries and agencies will be requesting the semi-government organizations under their jurisdiction and enterprises, competent organisations and industrial bodies in the critical private sector fields, to run tests in order to ascertain the operating statuses of their systems after the New Year, and to ensure correct start-up.
    Similarly, the Ministry for Home Affairs is requesting local government bodies to run tests to fully ascertain the operating statuses of their systems, and to ensure their correct start up after the New Year.

  3. Provision of information desks over the New Year period
    Over the New Year period, there is every possibility that there will be a great number of queries regarding the status of services in the critical private sector areas and defects in related equipment, etc., as well as requests for local area information. Therefore, efforts are being made to set up the following kinds of information desks within relevant organisations.
    ‡@Requests for the set up of information desks in private sector industries
    ¥ Competent ministries and agencies are requesting organisations and major operators in critical private sector industries to set up information desks. Additionally, contact points will be identified, networked and publicly announced.
    ¥ The Ministry of International Trade and Industry has requested major manufacturers and retailers of computers and related equipment, etc., and other related organisations, to set up information desks and to identify, network and publicly announce relevant contact points.
    ‡ARequests for the establishment of measures to be taken by local public bodies to provide advice and handle queries
    The Ministry for Home Affairs has requested local public bodies to take steps to be able to provide advice to the local populace and answer their queries, over the New Year period. In addition, they have been requested to publicise contact addresses such as the Y2K Task Force, etc. Also, competent government ministries and agencies, industries and major enterprises, etc., will cooperate in providing these local public bodies with support in their activities.
    ‡BRequest for the operation of information desks in small and medium sized enterprises
    Small and medium sized enterprises have been requested to keep the information desks within the Japan Small and Medium Enterprise Corporation and Regional Small Business Information Promotion Centres in urban and regional prefectures open over the New Year period.
    ‡CEstablishment of information desks within government organisations
    Ministries and agencies, semi-government and government organisations will, where necessary, establish and publicise information desks pertinent to their work.
    The Cabinet Secretariat will operate and publicise an advice desk to coordinate government related queries and advice.

  4. Strengthening of information provision towards the year end

    The government's Public Information office has been presenting information through a variety of media, such as newspaper, magazines, television and radio, etc., in order to keep the public well informed on the year 2000 issue, and to provide updates on the status of both government and private sector readiness. In addition, the Prime Minister's Residence and related ministries and agencies, etc., have worked to provide information through the operation of Internet home pages on the year 2000 issue.
    In the run-up to the New Year period, the following steps will be taken in order to reinforce information provision services.

    ‡@Information provision preparations in critical private sector areas and central government ministries and agencies
    Based on the final follow up results of the Promotion Conference and Advisors' Conference, active steps will be taken to provide information on the status of system inspections in the critical private sector areas and government and private sector crisis management readiness over the New Year period.
    ‡AFormulation and publication of 'Guidance for the Y2K Preparations'
    Following the Prime Minister's directive of 8th October, and based on the studies done by the ministries and agencies, the 'Guidance for the Y2K Preparations' that the general public may use as reference in making their own New Year preparations for the year 2000 problem will be drawn up and publicised. Also this list will be announced through a variety of media, such as national newspapers and television, etc., and with the cooperation of local public bodies, the information will be thoroughly disseminated in rural areas.
    ‡BInformation provision from the standpoint of the general public
    Until now, following the 'Measures for the strengthening of crisis management system', the Internet home page operated by Prime Minister's Residence has featured FAQ's in a question and answer format to make information easier to understand, and a question box to take direct questions from the public relating to year 2000 issues, and has tried to provide the relevant information from the standpoint of the general public. Efforts to consolidate and improve this provision will continue.
    ‡CReinforced Public Information and cooperation of the mass media, etc.
    Information provision via the publication of the above mentioned information, including the 'Important Information', though the government's Public Information office, will be reinforced, and related information provided for newspapers, magazines, television and other mass media, and their cooperation in this respect requested.
    ‡DResponse to the international situation
    With regard to the international situation, Japan has been working to promote international Y2K readiness by virtue of the provision of information regarding this country's Y2K readiness, and by hosting the APEC Y2K week (in April of this year). Further, based on the 'APEC Y2K 100 Days Cooperation Initiative', etc., the government is currently providing information to the industrialised nations, regarding crisis management readiness. After 1st January, 2000, the government will continue to monitor the international situation very closely, and will continue to provide international cooperation where required.