Conditions imposed by the Ministry of Transport

Corporations

( The Ministry of Transport compiled this statement after it had consulted

with the Kokuro. On June 11, 1999, the ministry imposed on the Kokuro the

conditions below through relevant political parties.)

1. Before starting a negotiation talk between the Kokuro trade union and the private railway enterprises, Japan Railway ( JR ) Corporations, the Kokuro is required to follow the conditions provided below;

(1) The Kokuro shall acknowledge that the newly established JR Corporations across the nation are exempt from legal responsibilities in terms of the employment rejection issue produced at the time of privatization of the former Japan National Railway Corporation, and it shall discuss a settlement of the dispute ( new recruitment ) from a purely humanitarian point of view, thus such negotiation should completely be separated from the employment rejection issue of the new JR railway companies. Their negotiation table between the railway companies and the Kokuro trade union shall be built with a major premise to establish sound relationship between the labor and the management.

(2) The dispute is attributable to the labor-management issue, and therefore negotiation talks shall be held between the parties concerned and no discussion is possible between the government, Kokuro and JR Corporation.

(3) The Kokuro shall dismiss litigation at a proper time in the context of the negotiation process, at least those cases related to the restructure of the former National Railway Corporation and raised at the time to found the JR companies.

(4) Parties with whom the JR Corporations across the country will have negotiation talks shall be respective area headquarters of the Kokuro. As for the JR cargo firms, no such an area headquarters of the Kokuro exists, the central headquarters of Kokuro may not be excluded as a negotiating party.

2. When the terms and conditions described above under Item 1. are fully met, the Liberal Democratic Party and the Liberal Party shall present ademand to the respective JR firms to the effect to start a negotiation talk with the Kokuro to discuss a settlement over the dispute from a humanitarian point of view.

3. Incidentally, in a separate manner, the dispute is relevant to reconciliation by money on the law-court between the Kokuro and the former public railway firm ( ex-Japan National Railway Corporation ), and the case shall be dealt with by the Liberal Democratic Party, the Liberal Party and the Social-Democratic Party in collaboration, responding to a process of negotiation between the Kokuro and the JR firms.