JAPAN - TAXES ON ALCOHOLIC BEVERAGES

                                                          Status Report by Japan

                                                                   Addendum

        The following communication, dated 7 November 1997, from the Permanent Mission of Japan to the Chairman of the Dispute Settlement Body, is circulated pursuant to Article 21.6 of the DSU.

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                                                                                Status Report on Implementation of the Recommendations and Rulings of

               the Dispute Settlement Body Regarding “Japan - Taxes on Alcoholic Beverages”

                                           (WT/DS8/11, WT/DS10/11, WT/DS11/8)

                                                        The Government of Japan

                                                              7 November 1997

        Pursuant to Article 21.6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (“DSU”), the Government of Japan (“GOJ”) is obliged to inform the Dispute Settlement Body (“DSB”) on the status of the implementation of the recommendations of the DSB regarding “Japan -Taxes on Alcoholic Beverages”.  Since this matter will be placed on the agenda of the DSB on 18 November 1997, the GOJ presents its third status report.

        The GOJ is continuing its examination of possible and practical responses to this issue in order to find a mutually acceptable solution with the other parties to this dispute regarding the modalities of the implementation of the recommendations of the DSB.  To this end, the GOJ will maintain its discussions with the other parties to this dispute.