And journalists have picked up the theme introduced by White. Not surprisingly, in financial

Centers in the United States, particularly in New York, investment bankers have indicated that the

Japanese position in the US stock market is threatening national security.

What do the numbers tell us? Today Japan’s share of total foreign holdings in the United States is

less than 13 percent. Japan’s ownership of an estimated $15 trillion of US capital is about 1.2 percent.

Compared to Western European ownership of American assets, Japan doesn’t look so imposing.

Western European investors own over 50 percent of all foreign-owned assets in the United States.

What does Japan invest in? About a third of its investments are in finance and insurance. Real

Estate and manufacturing constitute less than 20 percent of Japanese investments. The remainder

Are in transportation and commerce, as well as in US Treasury securities.

The question, then, is, Why does Japanese investment in the United States seem like such a

threat today? The answer probably lies with the more visible direct investments that Japan has

Made. When a Japanese purchases a Los Angeles hotel or an American landmark, such as the

Algonquin Hotel or Rockefeller Center in New York, it generates a lot of publicity. It also reminds