Nishimatsu plans compensation for Chinese wartime laborers

Nishimatsu Construction Co. is in talks to settle a compensation claim from Chinese nationals who say they were forced to work for the company during World War II, sources said.

The two sides are negotiating the amount of compensation and other terms, even though a court case over the matter ended in 2007, when the Supreme Court rejected the plaintiffs' claims.

The top court, however, said in the ruling that Nishimatsu must make efforts on its own to give relief to former laborers who "suffered extremely grave pain."

Nishimatsu decided to seek a settlement following a political fund scandal that led to a change in its top management, according to sources within the general contractor.

Former Nishimatsu President Mikio Kunisawa was indicted in March on charges of making illegal donations to political entities headed by opposition leader Ichiro Ozawa.

The talks are meant to show the company's resolve in fulfilling its social responsibilities, the sources said.

Nishimatsu's corporate lawyer, Yasuhiko Takano, has started talks with the former laborers' side. The Chinese side is expected to accept a settlement, according to sources.

The damages suit was filed by five Chinese who claimed they or their deceased relatives were forcibly brought to Japan to work at a power plant construction site under harsh conditions.

But the settlement will have a wider reach, according to Takano.

"We are negotiating toward a settlement with others in the same situation as the former plaintiffs," he said.

According to the Chinese side, about 360 Chinese were engaged in forced labor at the construction site in Hiroshima Prefecture. How many can be identified and covered by the settlement is still unknown.

One option is for Nishimatsu to set up a relief fund, according to sources.

Nishimatsu has consistently held the position that there was "no forced labor."

The two sides will discuss what the settlement will say about the facts and whether it will include a formal apology from Nishimatsu, according to the sources.

The claims by the five plaintiffs--three survivors and two bereaved relatives--were rejected by the Hiroshima District Court but upheld by the Hiroshima High Court.

But the Supreme Court ruled that the 1972 joint communique signed by Japan and China had settled all wartime compensation issues, including claims by individuals.

The ruling effectively shattered the hopes of any Chinese seeking compensation for wartime pain and suffering at the hands of Japan.

But the court at the same time urged Nishimatsu to make relief efforts because "it profited from the forced labor of Chinese who suffered extremely grave physical and psychological pain."

Hiroshi Tanaka, a professor emeritus at Hitotsubashi University who represents the former laborers in the negotiation, welcomed Nishimatsu's move as "a step forward."(IHT/Asahi: May 2,2009)