<SEC-DOCUMENT>0001140361-23-022609.txt : 20230503
<SEC-HEADER>0001140361-23-022609.hdr.sgml : 20230503
<ACCEPTANCE-DATETIME>20230503093542
ACCESSION NUMBER:		0001140361-23-022609
CONFORMED SUBMISSION TYPE:	N-CEN
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20230228
FILED AS OF DATE:		20230503
DATE AS OF CHANGE:		20230503
EFFECTIVENESS DATE:		20230503

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			JAPAN SMALLER CAPITALIZATION FUND INC
		CENTRAL INDEX KEY:			0000859796
		IRS NUMBER:				133553469
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			0228

	FILING VALUES:
		FORM TYPE:		N-CEN
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-05992
		FILM NUMBER:		23882001

	BUSINESS ADDRESS:	
		STREET 1:		WORLDWIDE PLAZA
		STREET 2:		309 WEST 49TH STREET
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		8008330018

	MAIL ADDRESS:	
		STREET 1:		WORLDWIDE PLAZA
		STREET 2:		309 WEST 49TH STREET
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	JAPAN OTC EQUITY FUND INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-CEN
<SEQUENCE>1
<FILENAME>primary_doc.xml
<TEXT>
<XML>
<?xml version="1.0" encoding="UTF-8"?>
<edgarSubmission xmlns="http://www.sec.gov/edgar/ncen" xmlns:com="http://www.sec.gov/edgar/common">
  <schemaVersion>X0404</schemaVersion>
  <headerData>
    <submissionType>N-CEN</submissionType>
    <filerInfo>
      <liveTestFlag>LIVE</liveTestFlag>
      <filer>
        <issuerCredentials>
          <cik>0000859796</cik>
          <ccc>XXXXXXXX</ccc>
        </issuerCredentials>
      </filer>
      <flags>
        <returnCopyFlag>false</returnCopyFlag>
        <overrideInternetFlag>false</overrideInternetFlag>
        <confirmingCopyFlag>false</confirmingCopyFlag>
      </flags>
      <investmentCompanyType>N-2</investmentCompanyType>
    </filerInfo>
  </headerData>
  <formData>
    <generalInfo isReportPeriodLt12="N" reportEndingPeriod="2023-02-28"/>
    <registrantInfo>
      <registrantFullName>JAPAN SMALLER CAPITALIZATION FUND INC</registrantFullName>
      <investmentCompFileNo>811-05992</investmentCompFileNo>
      <registrantCik>0000859796</registrantCik>
      <registrantLei>5493000KJSHWEB3YKZ37</registrantLei>
      <registrantstreet1>Worldwide Plaza, 309 West 49th Street</registrantstreet1>
      <registrantcity>New York</registrantcity>
      <registrantzipCode>10019-7316</registrantzipCode>
      <registrantstate>US-NY</registrantstate>
      <registrantcountry>US</registrantcountry>
      <registrantphoneNumber>1-800-833-0018</registrantphoneNumber>
      <websites>
        <website webpage="https://www.nomura-asset.com/investment-solutions/funds/closed-end-funds/jof/"/>
      </websites>
      <locationBooksRecords>
        <locationBooksRecord>
          <officeName>Brown Brothers Harriman &amp; Co.</officeName>
          <officeAddress1>50 Post Office Square</officeAddress1>
          <officeCity>Boston</officeCity>
          <officeStateCountry officeState="US-MA" officeCountry="US"/>
          <officeRecordsZipCode>02110-1548</officeRecordsZipCode>
          <officePhone>617-772-1818</officePhone>
          <booksRecordsDesc>Records related to its function as Custodian</booksRecordsDesc>
        </locationBooksRecord>
        <locationBooksRecord>
          <officeName>Computershare Trust Company, N.A.</officeName>
          <officeAddress1>150 Royall Street</officeAddress1>
          <officeCity>Canton</officeCity>
          <officeStateCountry officeState="US-MA" officeCountry="US"/>
          <officeRecordsZipCode>02021</officeRecordsZipCode>
          <officePhone>781-575-4175</officePhone>
          <booksRecordsDesc>Records related to its functions as Dividend Paying Agent, Transfer Agent, and Registrar</booksRecordsDesc>
        </locationBooksRecord>
        <locationBooksRecord>
          <officeName>Nomura Asset Management U.S.A. Inc.</officeName>
          <officeAddress1>Worldwide Plaza, 309 West 49th Street</officeAddress1>
          <officeCity>New York</officeCity>
          <officeStateCountry officeState="US-NY" officeCountry="US"/>
          <officeRecordsZipCode>10019-7316</officeRecordsZipCode>
          <officePhone>1-800-833-0018</officePhone>
          <booksRecordsDesc>Records related to its function as Manager</booksRecordsDesc>
        </locationBooksRecord>
        <locationBooksRecord>
          <officeName>Nomura Asset Management Co., Ltd.</officeName>
          <officeAddress1>2-2-1, Yoyusu, Koto-ku</officeAddress1>
          <officeCity>Tokyo</officeCity>
          <officeCountry>JP</officeCountry>
          <officeRecordsZipCode>135-0061</officeRecordsZipCode>
          <officePhone>1-800-833-0018</officePhone>
          <booksRecordsDesc>Records related to its function as Investment Adviser</booksRecordsDesc>
        </locationBooksRecord>
      </locationBooksRecords>
      <isRegistrantFirstFiling>N</isRegistrantFirstFiling>
      <isRegistrantLastFiling>N</isRegistrantLastFiling>
      <isRegistrantFamilyInvComp>N</isRegistrantFamilyInvComp>
      <registrantClassificationType>N-2</registrantClassificationType>
      <isSecuritiesActRegistration>Y</isSecuritiesActRegistration>
      <directors>
        <director>
          <directorName>Rodney A. Buck</directorName>
          <crdNumber>000000000</crdNumber>
          <isDirectorInterestedPerson>N</isDirectorInterestedPerson>
          <fileNumbers>
            <fileNumberInfo fileNumber="N/A"/>
          </fileNumbers>
        </director>
        <director>
          <directorName>David B. Chemidlin</directorName>
          <crdNumber>000000000</crdNumber>
          <isDirectorInterestedPerson>N</isDirectorInterestedPerson>
          <fileNumbers>
            <fileNumberInfo fileNumber="N/A"/>
          </fileNumbers>
        </director>
        <director>
          <directorName>Marcia L. MacHarg</directorName>
          <crdNumber>000000000</crdNumber>
          <isDirectorInterestedPerson>N</isDirectorInterestedPerson>
          <fileNumbers>
            <fileNumberInfo fileNumber="N/A"/>
          </fileNumbers>
        </director>
        <director>
          <directorName>Paige P. Ouimet</directorName>
          <crdNumber>000000000</crdNumber>
          <isDirectorInterestedPerson>N</isDirectorInterestedPerson>
          <fileNumbers>
            <fileNumberInfo fileNumber="N/A"/>
          </fileNumbers>
        </director>
        <director>
          <directorName>Yuichi Nomoto</directorName>
          <crdNumber>006705212</crdNumber>
          <isDirectorInterestedPerson>Y</isDirectorInterestedPerson>
          <fileNumbers>
            <fileNumberInfo fileNumber="N/A"/>
          </fileNumbers>
        </director>
      </directors>
      <chiefComplianceOfficers>
        <chiefComplianceOfficer>
          <ccoName>Neil A. Daniele</ccoName>
          <crdNumber>001180331</crdNumber>
          <ccoStreet1>Worldwide Plaza, 309 West 49th Street</ccoStreet1>
          <ccoCity>New York</ccoCity>
          <ccoStateCountry ccoCountry="US" ccoState="US-NY"/>
          <ccoZipCode>10019-7316</ccoZipCode>
          <ccoPhone>XXXXXX</ccoPhone>
          <isCcoChangedSinceLastFiling>N</isCcoChangedSinceLastFiling>
          <ccoEmployers>
            <ccoEmployer ccoEmployerId="N/A" ccoEmployerName="N/A"/>
          </ccoEmployers>
        </chiefComplianceOfficer>
      </chiefComplianceOfficers>
      <securityMatterSeriesInfo isRegistrantSubmittedMatter="Y">
        <seriesInfo seriesName="N/A" seriesId="N/A"/>
      </securityMatterSeriesInfo>
      <isPreviousLegalProceeding>N</isPreviousLegalProceeding>
      <isPreviousProceedingTerminated>N</isPreviousProceedingTerminated>
      <isClaimFiled>N</isClaimFiled>
      <coveredByInsurancePolicy isCoveredByInsurancePolicy="Y" isClaimFiledDuringPeriod="N"/>
      <isFinancialSupportDuringPeriod>N</isFinancialSupportDuringPeriod>
      <isExemptionFromAct>N</isExemptionFromAct>
      <isUnderwriterHiredOrTerminated>N</isUnderwriterHiredOrTerminated>
      <publicAccountants>
        <publicAccountant>
          <publicAccountantName>Ernst &amp; Young LLP</publicAccountantName>
          <pcaobNumber>42</pcaobNumber>
          <publicAccountantLei>N/A</publicAccountantLei>
          <publicAccountantStateCountry publicAccountantState="US-NY" publicAccountantCountry="US"/>
        </publicAccountant>
      </publicAccountants>
      <isPublicAccountantChanged>N</isPublicAccountantChanged>
      <isMaterialWeakness>N</isMaterialWeakness>
      <isOpinionOffered>N</isOpinionOffered>
      <isMaterialChange>N</isMaterialChange>
      <isAccountingPrincipleChange>N</isAccountingPrincipleChange>
      <paymentDividendSeries isPaymentDividend="Y">
        <seriesInfo seriesName="N/A" seriesId="N/A"/>
      </paymentDividendSeries>
    </registrantInfo>
    <managementInvestmentQuestionSeriesInfo>
      <managementInvestmentQuestion>
        <mgmtInvFundName>Japan Smaller Capitalization Fund, Inc.</mgmtInvFundName>
        <mgmtInvLei>5493000KJSHWEB3YKZ37</mgmtInvLei>
        <isFirstFilingByFund>N</isFirstFilingByFund>
        <numAuthorizedClass>0</numAuthorizedClass>
        <numAddedClass>0</numAddedClass>
        <numTerminatedClass>0</numTerminatedClass>
        <fundType>N/A</fundType>
        <isNonDiversifiedCompany>N</isNonDiversifiedCompany>
        <isForeignSubsidiary>N</isForeignSubsidiary>
        <isFundSecuritiesLending>Y</isFundSecuritiesLending>
        <didFundLendSecurities>N</didFundLendSecurities>
        <securityLendings>
          <securityLending>
            <securitiesAgentName>Brown Brothers Harriman &amp; Co.</securitiesAgentName>
            <securitiesAgentLei>5493006KMX1VFTPYPW14</securitiesAgentLei>
            <isSecuritiesAgentAffiliated>N</isSecuritiesAgentAffiliated>
            <isSecurityAgentIdemnity>N</isSecurityAgentIdemnity>
          </securityLending>
        </securityLendings>
        <paymentToAgentManagerType>N/A</paymentToAgentManagerType>
        <avgPortfolioSecuritiesValue>N/A</avgPortfolioSecuritiesValue>
        <netIncomeSecuritiesLending>N/A</netIncomeSecuritiesLending>
        <relyOnRuleTypes>
          <relyOnRuleType>Rule 32a-4 (17 CFR 270.32a-4)</relyOnRuleType>
        </relyOnRuleTypes>
        <isExpenseLimitationInPlace>N</isExpenseLimitationInPlace>
        <isExpenseReducedOrWaived>N</isExpenseReducedOrWaived>
        <isFeesWaivedRecoupable>N</isFeesWaivedRecoupable>
        <isExpenseWaivedRecoupable>N</isExpenseWaivedRecoupable>
        <investmentAdvisers>
          <investmentAdviser>
            <investmentAdviserName>Nomura Asset Management U.S.A. Inc.</investmentAdviserName>
            <investmentAdviserFileNo>801-12129</investmentAdviserFileNo>
            <investmentAdviserCrdNo>000108222</investmentAdviserCrdNo>
            <investmentAdviserLei>549300ZN36E1MEF7S595</investmentAdviserLei>
            <investmentAdviserStateCountry investmentAdviserCountry="US" investmentAdviserState="US-NY"/>
            <isInvestmentAdviserHired>N</isInvestmentAdviserHired>
          </investmentAdviser>
        </investmentAdvisers>
        <subAdvisers>
          <subAdviser>
            <subAdviserName>Nomura Asset Management Co., Ltd.</subAdviserName>
            <subAdviserFileNo>801-24357</subAdviserFileNo>
            <subAdviserCrdNo>000110814</subAdviserCrdNo>
            <subAdviserLei>549300LNIUIPKJOPIK90</subAdviserLei>
            <isSubAdviserAffiliated>Y</isSubAdviserAffiliated>
            <subAdviserCountry>JP</subAdviserCountry>
            <isSubAdviserHired>N</isSubAdviserHired>
          </subAdviser>
        </subAdvisers>
        <transferAgents>
          <transferAgent>
            <transferAgentName>Computershare Trust Company, N.A.</transferAgentName>
            <transferAgentFileNo>085-11340</transferAgentFileNo>
            <transferAgentLei>254900Y7PP3ZED9AUY94</transferAgentLei>
            <transferAgentStateCountry transferAgentCountry="US" transferAgentState="US-MA"/>
            <isTransferAgentAffiliated>N</isTransferAgentAffiliated>
            <isTransferAgentSubAgent>N</isTransferAgentSubAgent>
          </transferAgent>
        </transferAgents>
        <isTransferAgentHiredOrTerminated>N</isTransferAgentHiredOrTerminated>
        <pricingServices>
          <pricingService>
            <pricingServiceName>Refinitiv US LLC</pricingServiceName>
            <pricingServiceLei>N/A</pricingServiceLei>
            <pricingServiceStateCountry pricingServiceCountry="US" pricingServiceState="US-MA"/>
            <isPricingServiceAffiliated>N</isPricingServiceAffiliated>
          </pricingService>
          <pricingService>
            <pricingServiceName>ICE Data Services, Inc.</pricingServiceName>
            <pricingServiceLei>N/A</pricingServiceLei>
            <pricingServiceStateCountry pricingServiceCountry="US" pricingServiceState="US-GA"/>
            <isPricingServiceAffiliated>N</isPricingServiceAffiliated>
          </pricingService>
        </pricingServices>
        <isPricingServiceHiredOrTerminated>N</isPricingServiceHiredOrTerminated>
        <custodians>
          <custodian>
            <custodianName>Brown Brothers Harriman &amp; Co.</custodianName>
            <custodianLei>5493006KMX1VFTPYPW14</custodianLei>
            <custodianStateCountry custodianCountry="US" custodianState="US-MA"/>
            <isCustodianAffiliated>N</isCustodianAffiliated>
            <isSubCustodian>N</isSubCustodian>
            <custodyType>Bank - section 17(f)(1) (15 U.S.C. 80a-17(f)(1))</custodyType>
          </custodian>
        </custodians>
        <isCustodianHiredOrTerminated>N</isCustodianHiredOrTerminated>
        <shareholderServicingAgents>
          <shareholderServicingAgent>
            <shareholderServiceAgentName>Computershare Trust Company, N.A.</shareholderServiceAgentName>
            <shareholderServiceAgentLei>N/A</shareholderServiceAgentLei>
            <shareholderServiceAgentStateCountry shareholderServiceAgentCountry="US" shareholderServiceAgentState="US-MA"/>
            <isShareholderServiceAgentAffiliated>N</isShareholderServiceAgentAffiliated>
            <isShareholderServiceAgentSubshare>N</isShareholderServiceAgentSubshare>
          </shareholderServicingAgent>
        </shareholderServicingAgents>
        <isShareholderServiceHiredTerminated>N</isShareholderServiceHiredTerminated>
        <admins>
          <admin>
            <adminName>Brown Brothers Harriman &amp; Co.</adminName>
            <adminLei>5493006KMX1VFTPYPW14</adminLei>
            <adminStateCountry adminState="US-MA" adminCountry="US"/>
            <isAdminAffiliated>N</isAdminAffiliated>
            <isAdminSubAdmin>N</isAdminSubAdmin>
          </admin>
        </admins>
        <isAdminHiredOrTerminated>N</isAdminHiredOrTerminated>
        <brokerDealers>
          <brokerDealer>
            <brokerDealerName>Nomura Securities International, Inc.</brokerDealerName>
            <brokerDealerFileNo>008-15255</brokerDealerFileNo>
            <brokerDealerCrdNo>000004297</brokerDealerCrdNo>
            <brokerDealerLei>OXTKY6Q8X53C9ILVV871</brokerDealerLei>
            <brokerDealerStateCountry brokerDealerState="US-NY" brokerDealerCountry="US"/>
            <brokerDealerCommission>0</brokerDealerCommission>
          </brokerDealer>
          <brokerDealer>
            <brokerDealerName>Nomura Securities Co., Ltd.</brokerDealerName>
            <brokerDealerFileNo>N/A</brokerDealerFileNo>
            <brokerDealerCrdNo>000000000</brokerDealerCrdNo>
            <brokerDealerLei>XPSKD1VTEQPKCHBEKQ95</brokerDealerLei>
            <brokerDealerCountry>JP</brokerDealerCountry>
            <brokerDealerCommission>0</brokerDealerCommission>
          </brokerDealer>
        </brokerDealers>
        <brokers>
          <broker>
            <brokerName>MUFG Securities EMEA PLC</brokerName>
            <brokerFileNo>N/A</brokerFileNo>
            <brokerCrdNo>000000000</brokerCrdNo>
            <brokerLei>U7M81AY481YLIOR75625</brokerLei>
            <brokerCountry>GB</brokerCountry>
            <grossCommission>35674.13</grossCommission>
          </broker>
          <broker>
            <brokerName>Daiwa Capital Markets Europe Limited</brokerName>
            <brokerFileNo>N/A</brokerFileNo>
            <brokerCrdNo>000000000</brokerCrdNo>
            <brokerLei>MIM2K09LFYD4IB163W58</brokerLei>
            <brokerCountry>GB</brokerCountry>
            <grossCommission>21624.57</grossCommission>
          </broker>
          <broker>
            <brokerName>Mizuho Securities Asia Limited</brokerName>
            <brokerFileNo>N/A</brokerFileNo>
            <brokerCrdNo>000000000</brokerCrdNo>
            <brokerLei>35380066IP7PQ32LZN84</brokerLei>
            <brokerCountry>HK</brokerCountry>
            <grossCommission>13036.93</grossCommission>
          </broker>
          <broker>
            <brokerName>J.P. Morgan Securities PLC</brokerName>
            <brokerFileNo>N/A</brokerFileNo>
            <brokerCrdNo>000000000</brokerCrdNo>
            <brokerLei>K6Q0W1PS1L1O4IQL9C32</brokerLei>
            <brokerCountry>GB</brokerCountry>
            <grossCommission>10669.52</grossCommission>
          </broker>
          <broker>
            <brokerName>Citigroup Global Markets Limited</brokerName>
            <brokerFileNo>N/A</brokerFileNo>
            <brokerCrdNo>000000000</brokerCrdNo>
            <brokerLei>XKZZ2JZF41MRHTR1V493</brokerLei>
            <brokerCountry>GB</brokerCountry>
            <grossCommission>9659.06</grossCommission>
          </broker>
          <broker>
            <brokerName>Goldman Sachs &amp; Co. LLC</brokerName>
            <brokerFileNo>008-00129</brokerFileNo>
            <brokerCrdNo>000000361</brokerCrdNo>
            <brokerLei>FOR8UP27PHTHYVLBNG30</brokerLei>
            <brokerStateCountry brokerState="US-NY" brokerCountry="US"/>
            <grossCommission>7854.98</grossCommission>
          </broker>
          <broker>
            <brokerName>BNP Paribas Securities Services</brokerName>
            <brokerFileNo>N/A</brokerFileNo>
            <brokerCrdNo>000000000</brokerCrdNo>
            <brokerLei>549300WCGB70D06XZS54</brokerLei>
            <brokerCountry>FR</brokerCountry>
            <grossCommission>6778.86</grossCommission>
          </broker>
          <broker>
            <brokerName>Morgan Stanley &amp; Co. International PLC</brokerName>
            <brokerFileNo>N/A</brokerFileNo>
            <brokerCrdNo>000000000</brokerCrdNo>
            <brokerLei>4PQUHN3JPFGFNF3BB653</brokerLei>
            <brokerCountry>GB</brokerCountry>
            <grossCommission>5315.96</grossCommission>
          </broker>
          <broker>
            <brokerName>UBS Securities Asia Limited</brokerName>
            <brokerFileNo>N/A</brokerFileNo>
            <brokerCrdNo>000000000</brokerCrdNo>
            <brokerLei>549300Y35FCB6270R069</brokerLei>
            <brokerCountry>HK</brokerCountry>
            <grossCommission>3507.38</grossCommission>
          </broker>
          <broker>
            <brokerName>SMBC Nikko Securities (Hong Kong) Limited</brokerName>
            <brokerFileNo>N/A</brokerFileNo>
            <brokerCrdNo>000000000</brokerCrdNo>
            <brokerLei>254900KF8E8L84LI7648</brokerLei>
            <brokerCountry>HK</brokerCountry>
            <grossCommission>2787.63</grossCommission>
          </broker>
        </brokers>
        <aggregateCommission>120148.51</aggregateCommission>
        <principalTransactions>
          <principalTransaction>
            <principalName>BNP Paribas Securities Services</principalName>
            <principalFileNo>N/A</principalFileNo>
            <principalCrdNo>000000000</principalCrdNo>
            <principalLei>549300WCGB70D06XZS54</principalLei>
            <principalCountry>FR</principalCountry>
            <principalTotalPurchaseSale>8474884.86</principalTotalPurchaseSale>
          </principalTransaction>
          <principalTransaction>
            <principalName>Citigroup Global Markets Limited</principalName>
            <principalFileNo>N/A</principalFileNo>
            <principalCrdNo>000000000</principalCrdNo>
            <principalLei>XKZZ2JZF41MRHTR1V493</principalLei>
            <principalCountry>GB</principalCountry>
            <principalTotalPurchaseSale>2765300.34</principalTotalPurchaseSale>
          </principalTransaction>
          <principalTransaction>
            <principalName>Goldman Sachs &amp; Co. LLC</principalName>
            <principalFileNo>008-00129</principalFileNo>
            <principalCrdNo>000000361</principalCrdNo>
            <principalLei>FOR8UP27PHTHYVLBNG30</principalLei>
            <principalStateCountry principalCountry="US" principalState="US-NY"/>
            <principalTotalPurchaseSale>2532055.82</principalTotalPurchaseSale>
          </principalTransaction>
          <principalTransaction>
            <principalName>Mizuho Securities Asia Limited</principalName>
            <principalFileNo>N/A</principalFileNo>
            <principalCrdNo>000000000</principalCrdNo>
            <principalLei>35380066IP7PQ32LZN84</principalLei>
            <principalCountry>HK</principalCountry>
            <principalTotalPurchaseSale>2004402.16</principalTotalPurchaseSale>
          </principalTransaction>
          <principalTransaction>
            <principalName>UBS Securities Asia Limited</principalName>
            <principalFileNo>N/A</principalFileNo>
            <principalCrdNo>000000000</principalCrdNo>
            <principalLei>549300Y35FCB6270R069</principalLei>
            <principalCountry>HK</principalCountry>
            <principalTotalPurchaseSale>1422055.57</principalTotalPurchaseSale>
          </principalTransaction>
          <principalTransaction>
            <principalName>J.P. Morgan Securities PLC</principalName>
            <principalFileNo>N/A</principalFileNo>
            <principalCrdNo>000000000</principalCrdNo>
            <principalLei>K6Q0W1PS1L1O4IQL9C32</principalLei>
            <principalCountry>GB</principalCountry>
            <principalTotalPurchaseSale>610768.41</principalTotalPurchaseSale>
          </principalTransaction>
          <principalTransaction>
            <principalName>MUFG Securities EMEA PLC</principalName>
            <principalFileNo>N/A</principalFileNo>
            <principalCrdNo>000000000</principalCrdNo>
            <principalLei>U7M81AY481YLIOR75625</principalLei>
            <principalCountry>GB</principalCountry>
            <principalTotalPurchaseSale>161691.62</principalTotalPurchaseSale>
          </principalTransaction>
        </principalTransactions>
        <principalAggregatePurchase>17971158.78</principalAggregatePurchase>
        <isBrokerageResearchPayment>Y</isBrokerageResearchPayment>
        <mnthlyAvgNetAssets>221083318</mnthlyAvgNetAssets>
      </managementInvestmentQuestion>
    </managementInvestmentQuestionSeriesInfo>
    <closedEndManagementInvestment>
      <securityRelatedItems>
        <securityRelatedItem>
          <description>Common stock</description>
          <securityClassTitle>Japan Smaller Capitalization Fund, Inc.</securityClassTitle>
          <commonStocks>
            <commonStock commonStockExchange="XNYS" commonStockTickerSymbol="JOF"/>
          </commonStocks>
        </securityRelatedItem>
      </securityRelatedItems>
      <isRightsOffering>N</isRightsOffering>
      <isSecondaryOffering>N</isSecondaryOffering>
      <isRepurchaseSecurity>N</isRepurchaseSecurity>
      <isDefaultLongTermDebt>N</isDefaultLongTermDebt>
      <isDividendsInArrears>N</isDividendsInArrears>
      <isSecuritiesModified>N</isSecuritiesModified>
      <managementFee>0.89</managementFee>
      <netOperatingExpenses>1.41</netOperatingExpenses>
      <marketPricePerShare>6.77</marketPricePerShare>
      <netAssetValuePerShare>8.12</netAssetValuePerShare>
    </closedEndManagementInvestment>
    <attachmentsTab>
      <isLegalProceedings>false</isLegalProceedings>
      <isProvisionFinancialSupport>false</isProvisionFinancialSupport>
      <isIPAReportInternalControl>true</isIPAReportInternalControl>
      <isChangeAccPrinciples>false</isChangeAccPrinciples>
      <isInfoRequiredEO>false</isInfoRequiredEO>
      <isOtherInfoRequired>false</isOtherInfoRequired>
      <isMaterialAmendments>false</isMaterialAmendments>
      <isInstDefiningRights>false</isInstDefiningRights>
      <isNewOrAmendedInvAdvContracts>true</isNewOrAmendedInvAdvContracts>
      <isInfoItem405>false</isInfoItem405>
      <isCodeOfEthics>false</isCodeOfEthics>
    </attachmentsTab>
    <signature registrantSignedName="JAPAN SMALLER CAPITALIZATION FUND INC" signature="/s/ Amy J. Robles" signedDate="2023-05-03" title="Principal Financial Officer"/>
  </formData>
</edgarSubmission>
</XML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>ADVISORY CONTRACTS
<SEQUENCE>2
<FILENAME>brhc20052232_exg1biii.htm
<DESCRIPTION>EXHIBIT G.1.B.III
<TEXT>
<html>
  <head>
    <title></title>
    <!-- Licensed to: Broadridge Financial Solutions, Inc.
         Document created using Broadridge PROfile 23.3.2.5148
         Copyright 1995 - 2023 Broadridge -->
  </head>
<body style="font-family: 'Times New Roman'; font-size: 10pt; text-align: left; color: #000000;" bgcolor="#ffffff">
  <div>
    <hr style="height: 4px; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"></div>
  <div>
    <div style="text-align: right;">Exhibit G.1.b.iii</div>
    <div><br>
    </div>
    <div style="text-align: center;">MANAGEMENT AGREEMENT</div>
    <div>&#160;</div>
    <div style="text-indent: 36pt;">AGREEMENT made on December 15, 2022, by and between JAPAN SMALLER CAPITALIZATION FUND, INC., a Maryland corporation (hereinafter referred to as the &#8220;Fund&#8221;), and NOMURA ASSET MANAGEMENT U.S.A. INC., a New York corporation
      (hereinafter referred to as the &#8220;Manager&#8221;).</div>
    <div>&#160;</div>
    <div style="text-align: center; font-weight: bold;">WITNESSETH:</div>
    <div>&#160;</div>
    <div style="text-indent: 36pt;">WHEREAS, the Fund is engaged in business as a closed-end management investment company registered under the Investment Company Act of 1940, as amended (hereinafter referred to as the &#8216;&#8216;Investment Company Act&#8217;&#8217;); and</div>
    <div>&#160;</div>
    <div style="text-indent: 36pt;">WHEREAS, the Manager is willing to provide management and investment advisory services to the Fund on the terms and conditions hereinafter set forth;</div>
    <div>&#160;</div>
    <div style="text-indent: 36pt;">NOW, THEREFORE, in consideration of the mutual covenants and agreements of the parties hereto as herein set forth, the parties covenant and agree as follows:</div>
    <div>&#160;</div>
    <div style="text-align: center; font-size: 12pt;"><font style="font-size: 10pt; font-weight: bold;">ARTICLE I</font></div>
    <div>&#160;</div>
    <div style="text-align: center;">Duties of the Manager</div>
    <div>&#160;</div>
    <div style="text-indent: 36pt;">The Fund hereby retains the Manager to act as the manager of the Fund and to furnish the Fund with the management and investment advisory services described below, subject to the policies of, review by and overall
      control of the Board of Directors of the Fund, for the period and on the terms and conditions set forth in this Agreement. The Manager hereby accepts such employment and agrees during such period, at its own expense, to render, or arrange for the
      rendering of, such services and to assume the obligations herein set forth for the compensation provided for herein.</div>
    <div style="text-indent: 36pt;"> <br>
    </div>
    <div style="text-indent: 36pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="font-style: italic;">Management and Administrative Services. </font>The Manager shall perform, or supervise the performance of, the management and administrative services necessary for the
      operation of the Fund including administering shareholder accounts and handling shareholder relations. The Manager shall provide the Fund with office space, equipment and facilities and such other services as the Manager, subject to review by the
      Board of Directors of the Fund, shall from time to time determine to be necessary or useful to perform its obligations under this Agreement. The Manager shall also, on behalf of the Fund, conduct relations with custodians, depositories, transfer
      agents, dividend disbursing agents, other shareholder servicing agents, accountants, attorneys, underwriters, brokers and dealers, corporate fiduciaries, insurers, banks and such other persons in any such other capacity deemed to be necessary or
      desirable. The Manager shall generally monitor the Fund&#8217;s compliance with investment policies and restrictions as set forth in filings made by the Fund under Federal securities laws. The Manager shall make reports to the Board of Directors of the
      Fund of the performance of its obligations hereunder and furnish advice and recommendations with respect to such other aspects of the business and affairs of the Fund as it shall determine to be desirable. The Manager and each of its affiliates shall
      for all purposes herein be deemed to be an independent contractor and shall, unless otherwise expressly provided or authorized, have no authority to act for or represent the Fund in any way or otherwise be deemed and agent of the Fund.</div>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" class="BRPFPageBreakArea">
      <div class="BRPFPageFooter"></div>
      <div style="page-break-after: always;" class="BRPFPageBreak">
        <hr style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;" noshade="noshade"></div>
      <div class="BRPFPageHeader"></div>
    </div>
    <!--PROfilePageNumberReset%Num%2%%%-->
    <div style="text-indent: 36pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="font-style: italic;">Investment Advisory Services. </font>The Manager shall provide the Fund with such investment research, advice and supervision as the latter may from time to time consider
      necessary for the proper supervision of the assets of the Fund. The Manager shall act as investment adviser to the Fund and as such shall furnish continuously an investment program for the Fund and shall determine from time to time which securities
      shall be purchased, sold or exchanged and what portion of the assets of the Fund shall be held in the various securities in which the Fund invests, options, futures, options on futures or in cash, subject always to the restrictions of the Articles of
      Incorporation and By-Laws of the Fund, as amended from time to time, the provisions of the Investment Company Act and the statements relating to the Fund&#8217;s investment objective, investment policies and investment restrictions as the same are set
      forth in filings made by the Fund under Federal securities laws. The Manager shall make decisions for the Fund as to foreign currency matters and make determinations as to foreign exchange contracts. The Manager shall make recommendations as to the
      manner in which voting rights, rights to consent to corporate action and any other rights pertaining to the Fund&#8217;s portfolio securities shall be exercised. Should the Board of Directors of the Fund at any time, however; make any definite
      determination as to investment policy and notify the Manager thereof in writing, the Manager shall be bound by such determination for the period, if any, specified in such notice or until similarly notified that such determination has been revoked.
      The Manager shall take, on behalf of the Fund, all actions which it deems necessary to implement the investment policies determined as provided above, and in particular to place all orders for the purchase or sale of portfolio securities for the
      Fund&#8217;s account with brokers or dealers selected by it, and to that end, the Manager is authorized as the agent of the Fund to give instructions to the Custodian of the Fund as to deliveries of securities and payments of cash for the account of the
      Fund. In connection with the selection of such brokers and dealers and the placing of such orders, the Manager is directed at all times to seek to obtain execution and price within the policy guidelines determined by the Board of Directors of the
      Fund and set forth in the filings made by the Fund under Federal securities laws. Subject to this requirement and the provisions of the Investment Company Act, the Securities Exchange Act of 1934, as amended, and other applicable provisions of law,
      the Manager may select brokers or dealers with which it, or the Fund, is affiliated.</div>
    <div>&#160;</div>
    <div style="text-align: center; font-size: 12pt; font-weight: bold;"><font style="font-size: 10pt;">ARTICLE II</font></div>
    <div>&#160;</div>
    <div style="text-align: center;">Allocation of Charges and Expenses</div>
    <div>&#160;</div>
    <div style="text-indent: 36pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="font-style: italic;">The Manager. </font>The Manager assumes and shall pay for maintaining the staff and personnel necessary to perform its obligations under this Agreement and shall, at its
      own expense, provide the office space, equipment and facilities which it is obligated to provide under Article I hereof, and shall pay all compensation of officers of the Fund and all directors of the Fund who are &#8220;affiliated persons&#8221; (as defined in
      the Investment Company Act) of the Manager.</div>
    <div>&#160;</div>
    <div style="text-indent: 36pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="font-style: italic;">The Fund </font>The Fund assumes and shall pay or cause to be paid all other expenses of the Fund, including, without limitation: organization costs, taxes, expenses for
      legal and auditing services, costs of printing proxies, stock certificates, shareholder reports, prospectuses,</div>
    <div>&#160;</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" class="BRPFPageBreakArea">
      <div class="BRPFPageFooter"></div>
      <div class="BRPFPageNumberArea" style="text-align: center;"><font class="BRPFPageNumber" style="font-size: 8pt; font-weight: normal; font-style: normal;">2</font></div>
      <div style="page-break-after: always;" class="BRPFPageBreak">
        <hr style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;" noshade="noshade"></div>
      <div class="BRPFPageHeader"></div>
    </div>
    <div>charges of the Custodian, any Sub-Custodian and Transfer and Dividend Disbursing Agent, expenses of portfolio transactions, Securities and Exchange Commission and stock exchange fees, expenses of registering the Fund&#8217;s shares under Federal, state
      and foreign laws, expenses of administering any dividend reinvestment plan (except to the extent set forth in such plan), fees and actual out-of-pocket expenses of directors who are not affiliated persons of the Manager, accounting and pricing costs
      (including the daily calculation of the net asset value), insurance, interest, brokerage costs, litigation and other extraordinary or non-recurring expenses, and other like expenses properly payable by the Fund.</div>
    <div>&#160;</div>
    <div style="text-align: center; font-weight: bold;">ARTICLE III</div>
    <div>&#160;</div>
    <div style="text-align: center;">Compensation of the Manager</div>
    <div>&#160;</div>
    <div style="text-indent: 36pt;">For the services rendered, the equipment and facilities furnished and expenses assumed by the Manager, the Fund shall pay to the Manager at the end of each calendar month a fee at the annual rate of 0.90% of the Fund&#8217;s
      average weekly net assets (i.e., the average weekly value of the total assets of the Fund, minus the sum of liabilities of the Fund) not in excess of $250 million and 0.80% of the Fund&#8217;s average weekly net assets in excess of $250 million, commencing
      on the day following effectiveness hereof.</div>
    <div>&#160;</div>
    <div style="text-indent: 36pt;">This fee schedule is effective on December 31, 2022.</div>
    <div>&#160;</div>
    <div style="text-indent: 36pt;">For purposes of this calculation, average weekly net assets is determined at the end of each month on the basis of the average net assets of the Fund for each week during the month. The assets for each weekly period are
      determined by averaging the net assets at the last business day of the prior week. If this Agreement shall terminate before the last day of a month, compensation for that part of the month this Agreement is in effect shall be prorated in a manner
      consistent with the calculation of the fee as set forth above. During any period when the determination of net asset value is suspended by the Board of Directors of the Fund, the average net asset value of a share for the last week prior to such
      suspension shall for this purpose be deemed to be the net asset value at the close of each succeeding week until it is again determined.</div>
    <div>&#160;</div>
    <div style="text-align: center; font-weight: bold;">ARTICLE IV</div>
    <div>&#160;</div>
    <div style="text-align: center;">Retention of Investment Adviser</div>
    <div>&#160;</div>
    <div>This Agreement is entered into with the understanding that the Manager will enter into a separate Investment Advisory Agreement with Nomura Asset Management Co., Ltd., in which the Manager will contract for advisory services and pay the Investment
      Adviser compensation for its services out of the compensation received hereunder pursuant to Article Ill at the rates set forth therein. Such Investment Advisory Agreement will be coterminous with this Management Agreement. The Fund acknowledges that
      the Manager, with the prior authorization of the Fund&#8217;s Board of Directors, may delegate its investment discretion set&#160;forth in Article I(b) hereof to the Investment Adviser.</div>
    <div>&#160;</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" class="BRPFPageBreakArea">
      <div class="BRPFPageFooter"></div>
      <div class="BRPFPageNumberArea" style="text-align: center;"><font class="BRPFPageNumber" style="font-size: 8pt; font-weight: normal; font-style: normal;">3</font></div>
      <div style="page-break-after: always;" class="BRPFPageBreak">
        <hr style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;" noshade="noshade"></div>
      <div class="BRPFPageHeader"></div>
    </div>
    <div style="text-align: center; font-weight: bold;">ARTICLE V</div>
    <div>&#160;</div>
    <div style="text-align: center;">Limitation of Liability of the Manager</div>
    <div>&#160;</div>
    <div style="text-indent: 36pt;">The Manager shall not be liable for any error of judgment or mistake of law or for any loss arising out of any investment or for any act or omission in the execution and management of the Fund, except for willful
      misfeasance, bad faith or gross negligence in the performance of its duties, or by reason of reckless disregard of its obligations and duties hereunder. As used in this Article V, the term &#8220;Manager&#8221; shall include any affiliates of the Manager
      performing services for the Fund contemplated hereby and directors, officers and employees of the Manager as well as that corporation itself.</div>
    <div>&#160;</div>
    <div style="text-align: center; font-weight: bold;">ARTICLE VI</div>
    <div>&#160;</div>
    <div style="text-align: center;">Activities of the Manager</div>
    <div>&#160;</div>
    <div style="text-indent: 36pt;">The services of the Manager to the Fund are not to be deemed to be exclusive, the Manager and any person controlled by or under common control with the Manager (for purposes of this Article VI referred to as
      &#8220;affiliates&#8217;&#8217;) being free to render services to others. It is understood that directors, officers, employees and shareholders of the Fund are or may become interested in the Manager and its affiliates, as directors, officers, employees, partners,
      and. shareholders or otherwise and that directors, officers, employees, partners, and shareholders of the Manager and its affiliates are or may become similarly interested in the Fund, and that the Manager is or may become interested in the Fund as
      shareholder or otherwise.</div>
    <div>&#160;</div>
    <div style="text-align: center; font-weight: bold;">ARTICLE VII</div>
    <div>&#160;</div>
    <div style="text-align: center;">Duration and Termination of this Agreement</div>
    <div>&#160;</div>
    <div style="text-indent: 36pt;">This Agreement shall become effective on December 31, 2022 and shall remain in force until December 31, 2023 and thereafter, but only so long as such continuance is specifically approved at least annually by (i) the
      Board of Directors of the Fund, or by the vote of a majority of the outstanding voting securities of the Fund, and (ii) a majority of those directors who are not parties to this Agreement or interested persons of any such party cast in person at a
      meeting called for the purpose of voting on such approval.</div>
    <div>&#160;</div>
    <div style="text-indent: 36pt;">This Agreement may be terminated at any time, without the payment of any penalty, by the Board of Directors of the Fund or by vote of a majority of the outstanding voting securities of the Fund, or by the Manager, on
      sixty days&#8217; written notice to the other party. This Agreement shall automatically terminate in the event of its assignment.</div>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" class="BRPFPageBreakArea">
      <div class="BRPFPageFooter"></div>
      <div class="BRPFPageNumberArea" style="text-align: center;"><font class="BRPFPageNumber" style="font-size: 8pt; font-weight: normal; font-style: normal;">4</font></div>
      <div style="page-break-after: always;" class="BRPFPageBreak">
        <hr style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;" noshade="noshade"></div>
      <div class="BRPFPageHeader"></div>
    </div>
    <div style="text-align: center; font-weight: bold;">ARTICLE VIII</div>
    <div>&#160;</div>
    <div style="text-align: center;">Amendments of the Agreement</div>
    <div>&#160;</div>
    <div style="text-indent: 36pt;">This Agreement may be amended by the parties only if such amendment is specifically approved in accordance with applicable requirements under the Investment Company Act.</div>
    <div>&#160;</div>
    <div style="text-align: center; font-weight: bold;">ARTICLE IX</div>
    <div>&#160;</div>
    <div style="text-align: center;">Definitions of Certain Terms</div>
    <div>&#160;</div>
    <div style="text-indent: 36pt;">The terms &#8216;&#8216;vote of a majority of outstanding voting securities,&#8221; &#8220;assignment,&#8221; &#8220;affiliated person&#8221; and &#8220;interested person,&#8221; when used in this Agreement, shall have the respective meanings specified in the Investment
      Company Act and the rules and regulations thereunder, subject, however, to such exemptions as may be granted by the Securities and Exchange Commission under said Act.</div>
    <div>&#160;</div>
    <div style="text-align: center; font-weight: bold;">ARTICLE X</div>
    <div>&#160;</div>
    <div style="text-align: center;">Governing Law</div>
    <div>&#160;</div>
    <div style="text-indent: 36pt;">This Agreement shall be construed in accordance with the laws of the State of New York and the applicable provisions of the Investment Company Act. To the extent that the applicable laws of the State of New York, or any
      of the provisions herein, conflict with the applicable provisions of the Investment Company Act, the latter shall control.</div>
    <div>&#160;</div>
    <div class="BRPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
      <div class="BRPFPageNumberArea" style="text-align: center;"><font class="BRPFPageNumber" style="font-size: 8pt; font-weight: normal; font-style: normal;">5</font></div>
      <div class="BRPFPageBreak" style="page-break-after: always;">
        <hr style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;" noshade="noshade"></div>
      <div class="BRPFPageHeader"></div>
    </div>
    <div style="text-indent: 36pt;">IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of December 15, 2022.</div>
    <div><br>
    </div>
    <table style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; border-collapse: collapse; text-align: left; color: #000000;" id="z165ea54fd68a49df8e535d623f8bca8f" border="0" cellpadding="0" cellspacing="0">

        <tr>
          <td colspan="3" style="vertical-align: top;">
            <div>NOMURA ASSET MANAGEMENT U.S.A. INC.</div>
          </td>
        </tr>
        <tr>
          <td style="width: 3%; vertical-align: top;">&#160;</td>
          <td style="width: 37%; vertical-align: top;">&#160;</td>
          <td style="width: 60%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 3%; vertical-align: top;">
            <div>By:</div>
          </td>
          <td style="width: 37%; vertical-align: top;">
            <div><u>/s/ Yuichi Nomoto</u></div>
          </td>
          <td style="width: 60%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td colspan="3" style="vertical-align: top;">
            <div>Yuchi Nomoto, President</div>
          </td>
        </tr>
        <tr>
          <td style="width: 3%; vertical-align: top;">&#160;</td>
          <td style="width: 37%; vertical-align: top;">&#160;</td>
          <td style="width: 60%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td colspan="3" style="vertical-align: top;">
            <div>JAPAN SMALLER CAPITALIZATION FUND, INC.</div>
          </td>
        </tr>
        <tr>
          <td style="width: 3%; vertical-align: top;">&#160;</td>
          <td style="width: 37%; vertical-align: top;">&#160;</td>
          <td style="width: 60%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 3%; vertical-align: top;">
            <div>By:</div>
          </td>
          <td style="width: 37%; vertical-align: top;">
            <div><u>/s/ Amy J. Robles</u></div>
          </td>
          <td style="width: 60%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td colspan="3" style="vertical-align: top;">
            <div>Amy J. Robles, Treasurer</div>
          </td>
        </tr>

    </table>
    <div><br>
    </div>
    <br>
  </div>
  <div class="BRPFPageNumberArea" style="text-align: center;"><font class="BRPFPageNumber" style="font-size: 8pt; font-weight: normal; font-style: normal;">6</font></div>
  <div class="BRPFPageNumberArea" style="text-align: center;">
    <hr style="height: 2px; color: #000000; background-color: #000000; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"><font class="BRPFPageNumber" style="font-size: 8pt; font-weight: normal; font-style: normal;"> </font></div>
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>INTERNAL CONTROL RPT
<SEQUENCE>3
<FILENAME>brhc20052232_intcntlrpt.htm
<DESCRIPTION>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
<TEXT>
<html>
  <head>
    <title></title>
    <!-- Licensed to: Broadridge Financial Solutions, Inc.
         Document created using Broadridge PROfile 23.3.2.5148
         Copyright 1995 - 2023 Broadridge -->
  </head>
<body style="font-family: 'Times New Roman'; font-size: 10pt; text-align: left; color: #000000;" bgcolor="#ffffff">
  <div>
    <hr style="height: 4px; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade"></div>
  <div>
    <div class="BRPFPageHeader">
      <div><br>
      </div>
    </div>
    <div style="text-align: center; font-weight: bold;">Report of Independent Registered Public Accounting Firm</div>
    <div><br>
    </div>
    <div>To the Shareholders and</div>
    <div>Board of Directors of Japan Smaller Capitalization Fund, Inc.</div>
    <div>&#160;</div>
    <div style="color: #000000;">In planning and performing our audit of the financial statements of Japan Smaller Capitalization Fund, Inc.&#160; (the Company) as of and for the year ended
      February 28, 2023, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), we considered the Company&#8217;s internal control over financial reporting, including controls over safeguarding securities, as a
      basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements and to comply with the requirements of Form N-CEN, but not for the purpose of expressing an opinion on the effectiveness of the
      Company&#8217;s internal control over financial reporting. Accordingly, we express no such opinion.</div>
    <div>&#160;</div>
    <div style="color: #000000;">The management of the Company is responsible for establishing and maintaining effective internal control over financial reporting. In fulfilling this
      responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of controls. A company&#8217;s internal control over financial reporting is a process designed to provide reasonable assurance regarding
      the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. A company&#8217;s internal control over financial reporting includes those policies
      and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as
      necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and
      directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of a company&#8217;s assets that could have a material effect on the financial statements.</div>
    <div>&#160;</div>
    <div style="color: #000000;">Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation
      of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.</div>
    <div>&#160;</div>
    <div style="color: #000000;">A deficiency in internal control over financial reporting exists when the design or operation of a control does not allow management or employees, in the
      normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a
      reasonable possibility that a material misstatement of the Company&#8217;s annual or interim financial statements will not be prevented or detected on a timely basis.</div>
    <div>&#160;</div>
    <div style="color: #000000;">Our consideration of the Company&#8217;s internal control over financial reporting was for the limited purpose described in the first paragraph and would not
      necessarily disclose all deficiencies in internal control that might be material weaknesses under standards established by the PCAOB. However, we noted no deficiencies in the Company&#8217;s internal control over financial reporting and its operation,
      including controls over safeguarding securities, that we consider to be a material weakness as defined above as of February 28, 2023.</div>
    <div>&#160;</div>
    <div style="color: #000000;">This report is intended solely for the information and use of management and the Board of Directors of Japan Smaller Capitalization Fund, Inc. and the
      Securities and Exchange Commission and is not intended to be and should not be used by anyone other than these specified parties.</div>
    <div>&#160;</div>
    <div>/s/ Ernst &amp; Young LLP</div>
    <div><br>
    </div>
    <div>New York, New York</div>
    <div>April 27, 2023</div>
    <div class="BRPFPageFooter">
      <div style="text-align: right;"><font class="BRPFPageNumber">1</font></div>
      <div><br>
      </div>
    </div>
  </div>
  <hr style="height: 2px; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;" align="center" noshade="noshade">
</body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
