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<SEC-DOCUMENT>0000883511-07-000001.txt : 20070130
<SEC-HEADER>0000883511-07-000001.hdr.sgml : 20070130
<ACCEPTANCE-DATETIME>20070130113312
ACCESSION NUMBER:		0000883511-07-000001
CONFORMED SUBMISSION TYPE:	SC 13G/A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20070130
DATE AS OF CHANGE:		20070130

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			JAPAN SMALLER CAPITALIZATION FUND INC
		CENTRAL INDEX KEY:			0000859796
		IRS NUMBER:				133553469
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SC 13G/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	005-59337
		FILM NUMBER:		07563473

	BUSINESS ADDRESS:	
		STREET 1:		2 WORLD FINANCIAL CENTER
		STREET 2:		BUILDING B, 22ND FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10281-1712
		BUSINESS PHONE:		8008330018

	MAIL ADDRESS:	
		STREET 1:		2 WORLD FINANCIAL CENTER
		STREET 2:		BUILDING B, 22ND FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10281-1712

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	JAPAN OTC EQUITY FUND INC
		DATE OF NAME CHANGE:	19920703

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DUDLEY & SHANLEY, LLC
		CENTRAL INDEX KEY:			0000883511
		IRS NUMBER:				133324085

	FILING VALUES:
		FORM TYPE:		SC 13G/A

	BUSINESS ADDRESS:	
		STREET 1:		130 MAPLE AVENUE
		STREET 2:		SUITE EB2
		CITY:			RED BANK
		STATE:			NJ
		ZIP:			07701
		BUSINESS PHONE:		7329361030

	MAIL ADDRESS:	
		STREET 1:		130 MAPLE AVENUE
		STREET 2:		SUITE EB2
		CITY:			RED BANK
		STATE:			NJ
		ZIP:			07701

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DUDLEY & CO LLC
		DATE OF NAME CHANGE:	20030821

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DUDLEY & CO LLC /NY
		DATE OF NAME CHANGE:	19990406

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DUDLEY & CO
		DATE OF NAME CHANGE:	19980601
</SEC-HEADER>
<DOCUMENT>
<TYPE>SC 13G/A
<SEQUENCE>1
<FILENAME>sch13gamendment123106.txt
<DESCRIPTION>DUDLEY & SHANLEY SCHEDULE 13G-AMENDMENT 12-31-06
<TEXT>
##################################################
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


SCHEDULE 13G
AMENDMENT #2

Under the Securities Exchange Act of 1934



Japan Smaller Capitalization Fund, Inc.
(Name of Issuer)

Closed-end Fund traded on NYSE
(Title of Class of Securities)

47109U104
(CUSIP Number)


December 31, 2006
(Date of Event Which Requires Filing of this Statement)


Check the appropriate box to designate the rule pursuant to which this
Schedule is filed:

	___	Rule 13d-1(b)

	_X_	Rule 13d-1(c)

	___	Rule 13d-1(d)


*  The remainder of this cover page shall be filled out for a reporting
persons initial filing on this form with respect to the subject class
of securities, and for any subsequent amendment containing information
which would alter the disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not
be deemed to be filed for the purpose of Section 18 of the Securities
Exchange Act of 1934 (Act) or otherwise subject to the liabilities of
that section of the Act but shall be subject to all other provisions
of the Act (however, see the Notes).


CUSIP No.   47109U104


1.	Names of Reporting Persons
	I.R.S. Identification Nos. of above persons (entities only).

	Dudley & Shanley, LLC		Tax I.D.: 13-3324085

2.	Check the Appropriate Box if a Member of a Group (see
      Instructions)

	(a)

	(b)  X

3.	SEC Use Only


4.	Citizenship or Place of Organization

	State of Delaware, U.S.A.

Number of Shares Beneficially Owned by Each Reporting Person With:


5.	Sole Voting Power 		1,086,800

6.	Shared Voting Power		   60,000

7.	Sole Dispositive Power	      1,086,800

8.	Shared Dispositive Power	   60,000

9.	Aggregate Amount Beneficially Owned by Each Reporting Person

	1,146,800 shares

10.	Check if the Aggregate Amount in Row (9) Excludes Certain Shares

11.	Percent of Class Represented by Amount in Row (9)

	5.41%

12.	Type of Reporting Person

	IA



Item 1.

(a) Japan Smaller Capitalization Fund, Inc.
(b) 2 World Financial Center, Building B, 22nd Floor, New York, NY 10281-1712

Item 2.

(a) Dudley & Shanley, LLC
(b) 130 Maple Avenue, Suite EB2, Red Bank, NJ 07701
(c) Delaware, U.S.A.
(d) Closed-end Fund traded on NYSE
(e) 47109U104

Item 4.  Ownership

(a) 1,146,800 shares
(b) 5.41%
(i)  1,086,800
(ii)    60,000
(iii)1,086,800
(iv)    60,000

Item 10.  Certification

By signing below I certify that, to the best of my knowledge and belief,
the securities referred to above were not acquired and are not held for
the purpose of or with the effect of changing or influencing the control
of the issuer of the securities and were not acquired and are not held
in connection with or as a participant in any transaction having that
purpose or effect.

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true,
complete and correct.


January 30, 2007
Date


/s/ FRANK E. SHANLEY, Manager
Signature, Title
















</TEXT>
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