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Fukuda Cabinet E-mail Magazine No.23 (March 21, 2008)
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"On the Bank of Japan Governor issue. This is Yasuo Fukuda."
-- Message from the Prime Minister (Provisional Translation)
On the Bank of Japan Governor issue. This is Yasuo Fukuda.
Today, for the very first time in the postwar era, the Bank
of Japan does not have a Governor.
The appointment of the Governor of the Bank of Japan is subject
to the consent of both the House of Representatives and the House
of Councillors. However, in the current process of the selection
of the next Governor we have been unable to obtain the consent
of the House of Councillors, which is controlled by the Democratic
Party of Japan (DPJ).
The global financial and economic situation is becoming
increasingly uncertain due to various factors such as the sub-prime
loan problem. As such, the vacancy in the top position of Japan's
central bank is posing a severe strain, given the Bank of Japan's
impact on the country's domestic finances and economy as well as
on the nation's international credibility. I take my responsibility
as seriously as the gravity of the situation demands.
Mr. Toshiro Muto has served as the Deputy Governor of the Bank
of Japan for five years and enjoys the strong confidence
of the business world and the markets. Mr. Koji Tanami, who is
known to be a conscientious person, has demonstrated his abilities
in the world of international finance, first as the Deputy Governor
and then as the Governor of the Japan Bank for International
Cooperation (JBIC), over a span of seven years.
Although both Mr. Muto and Mr. Tanami would be highly suitable
as the next Governor of the Bank of Japan, a post that requires
deep insight into finance and the economy and keen international
awareness, the Cabinet was unable to obtain the DPJ's backing
for either of them.
Some people questioned my proposals, asking me why I did not put
forward a candidate to whom the DPJ could consent.
Were there to be proposals from the DPJ, I would at any time be
open to considering them. Indeed, many DPJ members have stated
their personal opinions, yet not one of them has ever mentioned,
as the party line, the name of any person they consider
to be suitable as the next Governor of the Bank of Japan.
Without any indication of who, specifically, the DPJ would deem fit
for the role of Governor, I concluded that my only course of action
was to propose candidates who I believe to be best qualified
for the post.
Former Prime Minister Osachi Hamaguchi once said, "I only walk
the right path," when he took an uncompromising stance against
the prewar military establishment in his efforts to bring about
disarmament.
I could have attempted to reach a political compromise to fill
the void at the top of the Bank of Japan by appointing an innocuous
person. But my conviction, on the contrary, was that I should hold
fast to selecting the right candidate on the basis of actual
qualities and abilities, because the person assuming
the responsibilities of Governor of the Bank of Japan will have
a major influence on the Japanese economy and the lives
of the people.
I am aware of the criticism as to why I choose candidates
from among former officials of the Ministry of Finance.
Why should we pass over the best available candidates merely
because they were former officials of the Ministry of Finance?
My decision was to put the right person into the right job based
solely on the perspective of choosing someone, regardless
of his or her personal history, who would best serve the interests
of the Japanese economy.
It is absolutely true that the Ministry of Finance and the Bank
of Japan must make their decisions independently, but that does not
mean that fiscal policy and financial policy should be totally
separated from each other. Coordination between the two
organizations is important, and particularly so now, considering
the current economic circumstances.
In any case, this current predicament has resulted in Japan sending
out a message to the world that it is unable to make a politically
important decision.
If the only attitude that is brought to bear is one designed to use
up the Diet's time by practically vetoing proposals, then our
responsibility as politicians to the public cannot be discharged.
In politics we bear responsibility for the consequences of our
actions, and I am responsible for the fact that the vacancy
in the post of Governor of the Bank of Japan has arisen.
At the same time, I consider it my mission and my responsibility to
normalize the situation at the Bank of Japan and political
conditions at the earliest possible juncture.
* Profile of the Prime Minister
https://japan.kantei.go.jp/hukudaprofile/index_e.html
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[What's New in Government Internet TV]
- Prime Minister's Week in Review (March 3 to 9, 2008)
https://nettv.gov-online.go.jp/prg/prg1726.html
- Japanese Technology - Supporting the World's Aquariums (Highlighting Japan)
https://nettv.gov-online.go.jp/prg/prg1725.html
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[What's up around the Prime Minister]
- Japan-Peru Summit Meeting (March 17, 2008) and others
https://japan.kantei.go.jp/hukudaphoto/index_e.html
* Please click below to open the online magazine
"Highlighting JAPAN," which introduces the main policies of
the Japanese Government, as well as Japan's arts, culture,
science and technology, among other topics.
http://www.gov-online.go.jp/eng/publicity/book/hlj/
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[Fukuda Cabinet E-mail Magazine]
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General Editor | : | Prime Minister Yasuo Fukuda |
Chief Editor | : | Deputy Chief Cabinet Secretary Matushige Oono |
Publication | : | Cabinet Public Relations Office 1-6-1 Nagata-cho, Chiyoda-ku, Tokyo 100-8968, Japan |