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More serious concern should be given to the closed and parochial sense of trade
appearing among Japanese scholars in the form of ignorance of the issues regarding

the laundering of legal titles by way of importing stolen movables. This intellectual
attitude of ignorance has a very profound and close relationship with the concept of

secure and stable trade for Japanese society.

Japanese legal concept of stable transaction

The Japanese Supreme Court held one particular version of the concept of stable
trade which is based on domestic practice, being mainly institutionalized for domestic

transactions. However, the Court also applied this concept to international trade.
The exclusiveness and closeness of this concept of stable trade leads to discounting any
causal relationship developed abroad and based on good faith. Once a movable object

entered within the country’s boundaries, the international good faith relations previously
connected and accumulated might easily be reset, and the legal title of a stolen movable
easily laundered in accordance with Japanese domestic law which the Court interpreted

in a manner favorable to legal-title laundering by way of import.

Unresolved general problem for international commerce

Japan devised a modern Civil Code at the end of the 19 century, modeled after
th
the “Western Principles,” without, however, taking seriously into consideration certain
54
socio-structural differences between Western countries which could lead to a different
concept of secure and stable trade and also to different choice-of-law rules.

Even now, as shown in this article, the way of thinking of Japanese courts and
scholars shows the parochial and closed characteristics in terms of international

commerce. The Japanese courts and scholars in particular are not very much aware of
the possible impact of such a formulation and reasoning, such as those held by
the Supreme Court, based on a particular view in terms of both domestic substantive

law and choice-of-law.

54 For the Japanese codification of P.I.L. as part of the outcome of “legal modernization” or “Westernization”,
see HARATA, L’exterritorialité (supra note 9).

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