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The Japanese shipbuilding industry was comparatively stable for a long period, but it experienced serious structural depression after the oil panic of 1973, resulting in a decline in orders for tankers. There exists a worldwide surpulus of cargo space, particulaly for oil. So, the Ministry of Transport made the Report to cut down 35% facilities of the 61 Special Shipbuilding Industries. The reduction of the 61 special companies made three patterns. Many of the Japanese big shipbuilding companies are collective heavy machinery industry. So, the large financial groups such as Mitsubishi, Mitsui, Hitachi and others, where the economy slack and laid off workers can absorbed by the other companies within the group which are prospering, such as the automobil companies. As of April 1984, there are 34 major shipyards in Japan. Most of them are roughly concentrated in three areas ; 4 are located in Keihin Industrial Region, 18 in the Seto Inland Sea Region and 5 in the Nothern Kyushu Region. From the major former concentrated region as Keihin, Chukyo, and Hanshin have moved to Seto and Nothern Kyushu Region. In June 1986, the Council for Rationalization of Shipping and Shipbuilding Industries submitted the report to cut down 20% facilities of the Special Shipbuilding Industries for ships of over 5,000 G.T., till the end of March 1988. In Sept. 1986, the head office of Ishikawaiima-Hanma decided to close new shipbuilding industry in Aioi shipyard, so till the end of 1986, about 2600 employees almost over 45 years old retired together with special retirement lump sum grant. It has same situation in Hitachi (Hiroshima-Innoshima), Kawasaki (Kobe) and so on where they were oblized to stop to build new ships. These are old tradional shipyards in Seto Inland Sea and also single shipbuilding industrial city, its closing reflects big influences about regional economy.