Friday, November 14, 2008

1st Day of the Summit on Financial Markets and the World Economy
〜Japan-Brazil, Japan-UK, and Japan-Indonesia Summit Meetings, and Other Events〜

On the evening of November 13 (Japan time: morning of November 14), Prime Minister Taro Aso arrived in Washington, DC, the capital of the United States of America, to attend the Summit on Financial Markets and the World Economy.

On the morning of November 14, Prime Minister Aso held talks with Mr. Luiz Inacio Lula da Silva, President of the Federative Republic of Brazil. At the talks, President Lula stated that it is important, as an immediate measure, to ensure an ample supply of liquidity to avoid impacts on the real economy, and pointed to the importance of regulating the flow of speculative money. The President said that the modalities of the International Monetary Fund (IMF) and the World Bank must be reviewed, in order to increase the number of countries participating in the decision-making processes of these institutions. In response, Prime Minister Aso stated that it is important for the countries participating in the Summit to address issues facing the world economy in cooperation with emerging economies, including Brazil. The Prime Minister stressed the necessity of providing adequate regulations on new financial products, among others, while ensuring international coordination, and the necessity of reviewing the modalities of the IMF so that it can function in a way that is suitable for today's world.

In the afternoon, Prime Minister Aso held talks with Mr. Gordon Brown, Prime Minister of the United Kingdom, at the official residence of the UK Ambassador to the United States. At the talks, the leaders exchanged opinions, mainly on international efforts to address the financial crisis, and found that they had in common many of these views. They confirmed their intention to advance cooperation going forward.

Prime Minister Brown urged the necessity of ensuring international coordination -- which he also stressed to be necessary in the supervision of financial markets -- of financial and fiscal policies. He acknowledged the significance of Prime Minister Aso's new economic countermeasures. Prime Minister Aso explained Japan's experience in the 1990s, and emphasized the necessity of nations implementing adequate financial and fiscal policies.

Afterwards, Prime Minister Aso held talks with Mr. Susilo Bambang Yudhoyono, President of the Republic of Indonesia. At the talks, the Prime Minister and the President exchanged views on cooperation and collaboration between the two countries to address the financial crisis.

Prime Minister Aso thanked President Yudhoyono for his recent meeting with the Prime Minister's special envoy, stating that it is appreciated that the two countries work to tackle the current situation in the same direction. The Prime Minister said that it is his intention to work together with the President in overcoming a once-in-a-century financial crisis. President Yudhoyono, agreeing with Prime Minister Aso's statements, said that Japan can play an extremely important role in the face of the current crisis both at global and regional fora including ASEAN+3. President Yudhoyono stated that Indonesia intends to cooperate at the Summit with Japan.

After the Japan-Indonesia Summit Meeting, a dinner was hosted by President George W. Bush at the White House. At its onset, the leaders of four international institutions -- Mr. Ban Ki-moon, Secretary-General of the United Nations, Mr. Dominique Strauss-Kahn, Managing Director of the IMF, Mr. Robert B. Zoellick, President of the World Bank, and Mr. Mario Draghi, Chairman of the Financial Stability Forum (FSF) -- each made their remarks. Then, President Bush called on Prime Minister Aso to make the first statement. In response, Prime Minister Aso said, "In addressing the financial crisis, the functioning of the IMF must be brought into alignment with the new needs of this era. Assistance to emerging and small and medium-sized countries and strengthening of early-warning functions are of particular importance."

Related Link

• Summit on Financial Markets and the World Economy (Ministry of Foreign Affairs)