(identical text on pages 5-6 and page 59)

Network Channel Terminating Equipment (NCTE):

1. The Governments of Japan and the United States, having exchanged views on the relevance of the 1990 Exchange of Letters on Network Channel Terminating Equipment (NCTE) ("the 1990 Letters"), share the following recognition, based upon which the two Governments propose a process for terminating the procedures established through this exchange of letters:

a. Significant competition among telecommunications carriers has emerged and the development process of terminal equipment has changed substantially.

b. Because of the shortened life-cycle of products, the shortened lead-time of product development, and the increased use of standards, timeframes described in the 1990 Letters for the disclosure of information on specifications for NCTE before the introduction of individual services may hinder prompt supply of advanced services.

a. Scope of carriers subject to revised procedures: Main carriers that determine specifications of NCTE and provide services (except those of sufficiently competitive areas), using Category I designated telecommunications facilities.

b. Scope of information disclosure under revised procedures: Regarding NCTE where network interface information has been made generally available through a standardization process or by other means, disclosure will not be required.

c. Term of disclosure of technical specifications: In principle, three months minimum, prior to introduction of a new service.