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Speeches and Statements by Prime Minister Junichiro Koizumi


(Provisional Translation)

Press Conference by Prime Minister Junichiro Koizumi
on the Passage of the FY2004 Budget

March 26, 2004

The Photograph of Prime Minister Koizumi


[Opening Statement]

Today, the FY2004 budget was approved by the Diet. This is the result of the joint cooperation of the ruling parties; the Liberal Democratic Party and New Komeito. I would like to extend my deepest gratitude to all involved for their efforts.

It is also thanks to the cooperation of the opposition parties in the deliberations on the budget that enabled its compilation and approval prior to the end of the financial year. I would like to reiterate my appreciation to all those concerned.

Many important bills are still awaiting passage during this session of the Diet. I am determined to go into the second half of this session of the Diet with a renewed resolve.

Looking at the international situation, preparations against terrorism while not taken on by false threat is a very important issue and is becoming a source of worry for the people of Japan. As Prime Minister, thoughts are never far from my mind about how to allay the worries of the people and how to respond to ensure the safety of the people. We will diligently ensure that close cooperation is implemented in exchanging information among the ministries concerned as well as with other countries to prevent acts of terrorism.

At the same time, the people of Japan also need to be aware and keep in mind that acts of terrorism could possibly occur in everyday life in any area. While it is of course important to take care of personal safety, I would like all people to recognize that they also need to protect society as a whole.

With regard to reconstruction and humanitarian assistance to Iraq, the Ground, Maritime and Air Self-Defense Forces (SDF) are currently doing a splendid job in Iraq. Yesterday I met with the Chairman of the Governing Council of Iraq and an accompanying delegation, who told me that the people of Iraq are welcoming the SDF personnel into their community and are grateful for their activities. It was very reassuring and encouraging to personally hear that the work of the SDF is highly regarded from those who are taking on responsibility for the future of Iraq, and who are determined to take a stand for the sake of nation-building in Iraq. I have received a report in the form of a letter from Colonel Masahisa Sato, the leader of the Ground Self-Defense Force (GSDF) based in Samawah, also known as the mustachioed Colonel, concerning the operations of the personnel. He tells me that the SDF personnel, who are being welcomed, are performing their duties while creating a good relationship with the local people. Another letter from Col. Sato was also very encouraging, expressing the determination of the SDF personnel to perform their duties while firmly keeping in mind their roles as representatives and executers of goodwill of the people of Japan. The Government of Japan gives its full support to the SDF personnel so that they will be able to actively and safely carry out their duties in Iraq.

With regard to the issue of North Korea, the families of the abductees never go a day without wishing for a swift reunion with the family members who have been left behind in North Korea. It is incumbent on the Government of Japan to comprehensively solve the abduction and nuclear issues and endeavor to swiftly build normal relations with North Korea.

Currently, although expected results have not been achieved yet, we must strengthen concerted efforts by the countries involved and continue to utilize all possible opportunities including the six-party talks to repeatedly impress upon North Korea that it would be of the greatest benefit for North Korea to become a responsible member of the international community. We must also make efforts to take a swift resolution of both the abduction and nuclear issues surrounding North Korea.

On economic aspects, we have been able to see the passage of the budget through the Diet without any reference being made to a "March crisis" for the first time in a long time. This could be taken to imply that in economic aspects too, a brighter outlook has been seen. We must now endeavor to ensure that what we currently expect to be economic recovery is certainly realized.

Since my inauguration as prime minister, I have stated that "without reform there will be no growth." Subsequently, there have been persistent voices of disapproval, claiming that proceeding with reforms in a deflationary economy would only lead to the amount of non-performing loans further increasing. We also have been faced with the criticism that "without growth there will be no reform"

In spite of such criticism, we have advanced the disposal of non-performing loans based on the premise that there will be no growth unless the non-performing loans of financial institutions are disposed of. As a result of these efforts, we are now in the pleasant position of being on the verge of realizing the initial targets, in terms of both the amount of non-performing loans and their ratio.

Although the unemployment rate still stands at a severe level of around 5%, signs of improvements are now being seen in the numbers of employees and the ratio of active job openings-to-applicants. Despite the projection that the number of bankruptcies would increase if the disposal of non-performing loans were to be progressed, actually the number of bankruptcies has decreased for 18 consecutive months.

The improvements in corporate results have now been led mainly by large companies. One of the most significant tasks we face is to further disseminate such improvements in corporate revenues to small and medium-sized enterprises (SMEs) and to the regions nationwide.

This leaves me keenly aware of the necessity to continue to firmly maintain the policy of "without reform there will be no growth."

I will do my best to realize economic revitalization, and steadily progress reform policies, while receiving the guidance of the people of Japan.

Under the policy of "from public sector to private sector" and "from the state to the regions," and "leave to the private sector what it can do" and "leave to the localities what they can do," we have now reached the deliberation stage concerning the privatization of the highway-related public corporations. We also plan to have a concrete plan for the privatization of postal services by this autumn, which I positioned at the "heart" of reforms at the time of my inauguration as prime minister. A preparatory office for privatization of postal services will be launched next month. The issue of postal services had been termed in the past as the "hundred years war" between the former Ministry of Posts and Telecommunication and the Ministry of Finance. But such a dispute is totally irrelevant. From the perspective of structural reform of bureaucracy of Japanese government as a whole and also that cross-governmental efforts that do not cling to the minutiae of red tapism will be required in the privatization of postal services, I have asked former Vice-Minister of Agriculture, Forestry and Fisheries, Mr. Yoshiaki Watanabe to head the preparatory office. Mr. Watanabe will also serve as the Special Advisor to the Prime Minister responsible for privatization of postal services. A more concrete list of members of the preparatory office will be decided in April. There is still much that requires reform. With the conviction that politics will work with the people and under the policy of "without reform there will be no growth," we will make every endeavor towards the revitalization and revival of the Japanese economy.

In this, from my heart I ask for your guidance and cooperation.


[Q&A]
Question: Just now, I heard that the five Chinese nationals arrested for illegally landing on the Senkaku Islands were handed to the Immigration Bureau without being turned over to the public prosecutor's office. Was this government's decision made with the intention of swiftly resolving the issue, so as not to deteriorate the relations with China?

Prime Minister Koizumi: The illegal landing on Uotsuri Island of the Senkaku Islands has been handled appropriately on a legal basis. At the same time, a judgment must be made from a comprehensive perspective to keep the incident from having an adverse affect on Japan-China relations. Instructions are given to the relevant authorities in line with this basic policy, and any incident should be appropriately handled in accordance with these instructions.

Question: The dispatch of the Ground Self-Defense Force (GSDF) to Iraq is now almost completed and they are now engaged in full-fledged reconstruction assistance activities in Samawah. On the other hand, disorder through terrorism has still not been quelled as seen in acts of terrorism inside Iraq and the train bombings in Spain. In the event that something should happen to one of the GSDF units dispatched to Iraq, or if there is an incidence of terrorism within Japan, would you consider the withdrawal of the GSDF unit and other SDF units as a possible choice?

Prime Minister Koizumi: The Government, with due concern, is making utmost efforts to prevent acts of terrorism. Rather than focusing on what would happen in the event of acts of terrorism, we must think about what we should do to ensure successful reconstruction assistance to Iraq. Without the success of reconstruction assistance to Iraq, the world will not achieve stability. In this perspective, we must think what Japan can do to assist the reconstruction of Iraq, and I believe one of them is the current dispatch of the SDF.

Whatever situations may arise, I will work to see that Japan fulfills its responsibilities in reconstruction assistance to Iraq and respond to any situations, from the perspective of what the SDF, the civilians and the Japanese government can do.

Question: Could you please specify what kind of approach you are going to take in the second half of the Diet session, which is less likely to be extended due to the coming election for the House of Councilors, when it is faced with issues such as pension, highways and emergency bills? Also concerning the pension bill, do you intend to secure the passage of this bill in the current session of the Diet, given that it has been pointed out by some that the current bill is far from a sweeping reform?

Prime Minister Koizumi: I strongly expect that the bills on pensions and highways as well as emergency bills will be passed after the deliberation. Although there are differences in opinion between the ruling and the opposition parties, I believe that opposition parties will come up with a counterproposal.

As for your question on pensions, I consider this to be an extremely important reform that deals with benefits and burden. In such a context, I will push strongly for its passage in the current session of the Diet. From a systematic aspect, although it is still unclear what sort of counterproposal the Democratic Party of Japan (DPJ) is now considering, the question is whether the counterproposal will drastically change the system or not. Since this is not the only one opportunity for reform, I think it is acceptable for the two sides to frankly and honestly talk over these points when their proposals are given. It is not the case that we will have no chance to discuss the counterproposal once the bills on reform submitted by the Government are passed. The bill submitted by the Government clearly defines the benefits and burden numerically. Furthermore, the bill incorporates the plan to raise the state subsidy ratio of the basic pension to a level of one half. As such, even after the passage of the bill submitted by the Government, opportunities for discussion over the future will remain. If counterproposals are made on such points, they could be discussed flexibly and cooperation would also be made where possible. However, I will push strongly for the bills which are currently submitted by the Government to be passed in this current session of the Diet.

Question: In relation to terrorism, you have earlier called for the public to be aware and keep in mind that acts of terrorism could occur in everyday life, but what did you mean more specifically by that? At the same time, if Japan is under the threat of terrorism, I believe such circumstances are related to the Government of Japan and your support to the Iraqi War and the dispatch of the Self-Defense Forces (SDF). Could you please share with us what you consider as your responsibility in the event of the worst case scenario and your resolution in this regard?

Prime Minister Koizumi: First, in advancing any and all policies, the maintenance of public security not only in Iraq but in general is of concern to the great majority of people in Japan. When looking at the status of regional security in Japan, we see that volunteer activities on the part of local residents have contributed to a significant deterrent against crime without relying solely on the police force.

From this perspective, I would request that all people take close notice of their own behavior on a daily basis so as not to cause inconvenience to others. Instead of turning a blind eye, it is necessary for all of us to respond with caution to anything we may notice that seems suspicious.

Furthermore, regarding my responsibility in the event of acts of terrorism, I consider the construction of a thorough system that prevents terrorism is also my responsibility. At all times I am considering the responsibility I would take as the person with the highest political responsibility in Japan. I would like to look at the situation at such a time in order to decide how to take responsibility myself. I believe it is inappropriate to hypothesize at this point about what I would do in a certain situation.

Thank you very much.