Press Conference by the Chief Cabinet Secretary

JAPANESE

Opening Statement by Chief Cabinet Secretary Edano

CHIEF CABINET SECRETARY EDANO: I have one item to report, concerning the Investigation Committee into the Operations and Finances of Tokyo Electric Power Company (TEPCO) (TEPCO Financial Investigation Committee). In dealing with the incident at the Fukushima Daiichi Nuclear Power Station of TEPCO, the Government believes that the following three points must be ensured. Firstly, that thorough measures are implemented to ensure the expedited and appropriate payment of damage compensation; secondly, that the measures are taken to ameliorate any adverse impact on the operators and others engaged in operations to stabilize the situation at the power station and deal with the incident; and thirdly, that a stable supply of power essential for people's lives is ensured. Based on these three principles the Government considers it to be necessary to engage in an investigation of the operations and financial affairs of TEPCO, through which the content of rationalization measures including the sale of assets can be clarified and it can be ascertained that TEPCO is making maximum efforts to engage in such measures, and also that if the Government extends assistance to TEPCO, the burden on the public purse can be kept to a minimum. For this reason the Government has decided to convene the TEPCO Financial Investigation Committee, composed of experts who are well-versed in operational and financial affairs, and this decision was approved by the Cabinet today. The Committee will be overseen by Minister Kaieda, in his capacity as Minister for the Response to the Economic Impact caused by the Nuclear Incident. It will engage in investigation of the operations and finances of TEPCO in order to strictly and fairly evaluate the company's assets and implement thorough cost reviews. The results of this investigation will be used by the Government when allocating assistance to the company. The members of the TEPCO Financial Investigation Committee are detailed in the handout that has been distributed and attorney-at-law Mr. Kazuhiko Shimokobe has been requested to head the Committee. In consultation with the head of the Committee the first meeting is expected to be held as soon as possible. The secretariat for the Committee is expected to be established within the Team in charge of Responding to the Economic Impact caused by the Nuclear Power Station Incident in the Cabinet Secretariat and will be termed the TEPCO Operations and Finances Task Force, to be headed by Deputy Chief Cabinet Secretary Sengoku. For further details please direct your questions to the Team in charge of Responding to the Economic Impact caused by the Nuclear Power Station Incident.

Q&As

REPORTER: With regard to the TEPCO Financial Investigation Committee, I imagine that at the current point it is envisaged that it will take some time to engage in investigations, but you have said so far that such a long period of time cannot be spent on investigations. How long do you expect it will be before a conclusion is reached and what investigations will be required from the perspective of those who have been affected by the incident?

CHIEF CABINET SECRETARY EDANO: The TEPCO Financial Investigation Committee has now been launched and its head and members have also been decided, so we are now at the stage of deciding on the specific processes that will be dealt with by the Committee, in consultation with the head and other members. The Government's position is that while it wishes the Committee to engage in a thorough investigation, it also wishes to receive a clear report at the earliest possible juncture.

REPORTER: I believe that an early conclusion is required in order to create a framework for compensation for the victims and a framework for assistance. What kind of investigations will be required from the perspective of the people who have been affected by the incident?

CHIEF CABINET SECRETARY EDANO: I believe that in relation to the people who have been affected by the incident, it is important for thorough compensation to be provided, whether it is provided by TEPCO or by the Government. The Government has repeatedly stated that compensation should be paid quickly and in an appropriate manner. The most significant point about the launch of the TEPCO Financial Investigation Committee is that it must make maximum efforts to ensure that the compensation does not end up being a public burden, whether through electricity tariffs or taxes. From that perspective, the role of the Committee will be to make maximum efforts to evaluate TEPCO's accounts and review cost structures, to ensure that compensation does not lead to greater public burden through electricity tariffs or taxes.

REPORTER: The TEPCO Financial Investigation Committee and the Nuclear Incident Investigation Committee announced by Deputy Chief Cabinet Secretary Sengoku this morning do not seem to have any official power. How far do you think their authority to engage in investigation extends?

CHIEF CABINET SECRETARY EDANO: With regard to the TEPCO Financial Investigation Committee, we have received an acknowledgement letter from TEPCO, and although I do not recall the exact wording, TEPCO undertakes to provide full cooperation to the Committee. I believe that full cooperation by TEPCO is the premise on which the Government would provide assistance and therefore it is only natural that TEPCO is providing such cooperation. In the case of the Nuclear Incident Investigation Committee, its authority is based on a Cabinet decision and members of the Government therefore have an obligation to abide by this decision, which gives the Committee mandatory powers backed by law.

REPORTER: What mandatory power will the Nuclear Incident Investigation Committee be able to exert over TEPCO?

CHIEF CABINET SECRETARY EDANO: As the situation at the power station is still not fully under control it is necessary to engage in a thorough investigation of the causes of the incident and the responses made immediately after it occurred as a means of preventing a further deterioration in the situation. It is in this general context that the Minister of Economy, Trade and Industry has authority, based on the stipulations of the Nuclear Reactor Regulation Act. The Nuclear Incident Investigation Committee has been convened based on a Cabinet decision and TEPCO will provide full cooperation to the Committee, but if it is necessary to exert authority, this will be done and in the final instance the head of the Nuclear Emergency Response Headquarters may also exert authority.

REPORTER: I have one more question concerning the Nuclear Incident Investigation Committee. Members of the Government will of course be subject to investigation and Secretary General Ishihara of the Liberal Democratic Party (LDP) has stated that the Committee should therefore be established outside the administration. What are your views on this comment?

CHIEF CABINET SECRETARY EDANO: First of all, I believe that whatever the case it is necessary for the Government to engage in a thorough investigation of the incident and naturally the Government would not veto any investigation implemented by an external third party. However I believe that it is necessary for the Government to engage in an investigation of its own. The Government has therefore established the Nuclear Incident Investigation Committee under the Cabinet on this occasion, but with the intention of ensuring its independence to the maximum degree possible, separate from the existing nuclear power administrative structure and also from the Cabinet itself. Furthermore, the Government will not refuse to cooperate with other reviews and investigations of the Diet or international organizations and with these two or three investigation processes in place I do not see any particular problem.

REPORTER: With regard to the TEPCO Financial Investigation Committee that you have just announced, you have emphasized to date that TEPCO is not currently a nationalized company. While it is of course the case that the Government would share responsibility with a private sector company concerning the response to the incident at the power station, it has also been pointed out that it is irregular for the Government to intervene in this way in examining the finances of a private company. What are your thoughts on this matter?

CHIEF CABINET SECRETARY EDANO: If TEPCO did not require assistance then of course the Government would not be implementing this investigation in the first place.

REPORTER: With regard to the timing of the submission of the conclusions or interim report of the TEPCO Financial Investigation Committee, do you consider that the submission of such a report is a precondition for moving forward with the compensation scheme, including the submission of a draft bill on compensation and the establishment of an organization for compensation following the submission of the bill?

CHIEF CABINET SECRETARY EDANO: I do not think that it is a precondition for moving forward, but there is also a question of the extent to which the Diet will provide its understanding on this matter. Unless the Government can submit to the Diet a certain outlook concerning the actual status of TEPCO's finances and the scale of funds that TEPCO can generate through its own independent efforts, it is unlikely that the Diet would provide its understanding, although that is naturally a matter for the Diet to decide.

REPORTER: With regard to the scope of the mandate of the TEPCO Financial Investigation Committee, will it be also examining shareholder responsibility and the necessity for capital reduction, or the handling of debt by financial institutions?

CHIEF CABINET SECRETARY EDANO: I think you should look at the content of the Cabinet decision for an answer, but as the purpose of the Committee is stated as being to engage in investigation into the operations and finances of TEPCO in order to strictly and fairly evaluate the company's assets and implement thorough cost reviews, items that fall under this description will be subject to investigation, and those that do not will not be investigated.

REPORTER: If the investigations of this Committee show the possibility of TEPCO falling into insolvency, is it possible that the Government would provide legislative measures to support TEPCO?

CHIEF CABINET SECRETARY EDANO: This is something that will be the target of investigation from now and as it is a sensitive issue, I think I should refrain from comment at this time.

REPORTER: This is similar to a previous question, but is it possible that the results of the investigation will have a bearing on the Government's assistance scheme or cause the scheme to be changed?

CHIEF CABINET SECRETARY EDANO: The scheme that was approved by a meeting of related ministers is the scheme on which the Government will seek to gain the understanding of the public. Although I cannot say in absolute terms, the intention is to press forward with the implementation of this previously decided scheme, based on the results of the investigation.

REPORTER: Can you explain why Mr. Shimokobe has been made head of the Committee?

CHIEF CABINET SECRETARY EDANO: That would be because of his depth of experience investigating the state of corporate operations. He has experience as the CEO of the Industrial Revitalization Corporation of Japan which is in charge of these issues, and has also held a post on the Industrial Revitalization Committee. Given the nature of the investigation into the operational and financial state of TEPCO this time, we judged him fit for the job.

REPORTER: I feel that the evaluation committee has been established quite quickly since the formulation of a scheme for the restructuring of TEPCO. On the other hand, it seemed like some time passed between the Prime Minister's announcement of the Nuclear Incident Investigation Committee around April and its formation. Any comment?

CHIEF CABINET SECRETARY EDANO: We want the Investigation Committee to be able to carry out its work from a neutral position in the public eye. Particularly in order to ensure such neutrality, we need a thorough investigation, or checks, into the member's previous involvement with TEPCO or Japan's policy for atomic power up until now. Finding those with no direct relationship to the matter or conflicts of interest took a certain amount of time.

REPORTER: I have a question about accident investigations. There are regulations for the establishment of an Investigation Committee by an external agency of the Ministry of Land, Infrastructure and Transport (MLIT) when an airplane crashes, for instance, or for the establishment of other investigation committees for other incidents. There are also punishments in place if it is found that false information was reported. However, this time, the Government has not created this Investigation Committee based on any laws, but through a decision of the Cabinet. I don't think that anyone has questioned the penalties related to this issue up until now. Are there relevant penalties? If not, why not? Can you really guarantee trustworthiness without regulations to punish people if they misbehave? I would like to hear your opinion on these points.

CHIEF CABINET SECRETARY EDANO: While what I'm about to say perhaps doesn't really apply to those of us in the special service, actually, separate from the existence of punishments, it is the duty of national public employees to follow and cooperate on matters decided through Cabinet decisions. If they do not, my understanding is that they are at the least subject to penalties prescribed in the National Public Service Act. Also, I think there was a report about this during the morning press conference with Deputy Chief Cabinet Secretary Sengoku, but we have always felt that we want this investigation to be as open to the public as possible, and I have heard that the head of the Committee feels the same way. And so if we can ensure such transparency, I think that more than anything, the eyes of the public will be sternly checking the way this investigation moves forward.

REPORTER: I would like to confirm something one more time. Recently the Government corrected the statement made by Chair of the Nuclear Safety Commission Haruki Madarame (on March 12 related to seawater injection operations). I think that you and the Prime Minister will both be subject to the investigation this time along with other ministers, and I think that there have already been multiple questions on this, but I want to ask about the lack of recordings, tape or otherwise, made of the decision process utilized from the start of the incident until now.

CHIEF CABINET SECRETARY EDANO: To be precise, I think there are instances during which nothing was recorded. I don't know how much I should say about this, but for example, within the Crisis Management Center a truly tremendous amount of documents are made and then passed out for people to view. And in these documents I believe there are items relating to reports from TEPCO or NISA, or specific instructions, or instructions to be shared, and other matters. It's all on paper. However, as you all know, there was a phase spanning a few days after March 11 during which the situation was truly tense, and I cannot deny that it is possible no notes were taken, or at least no accurate and detailed ones, of the debates and decisions undertaken in that unforgiving environment. Everything was recorded later on, and if we revive our memories based on it, I think that we will be able to have a thorough investigation based on what we have. For example, and this has been an issue for me recently, but I do not have any memory of the meeting that took place at 6:00pm on May 12. When I checked the records, it seems I was holding a press conference at that time, so of course I wouldn't remember the meeting. We are able to confirm facts like these. And in doing so I think we will be able to properly put all the facts together, to the extent we can.

REPORTER: A moment ago you spoke about your intention to make the Nuclear Incident Investigation Committee's work open to the public. But for matters not recorded in text form or otherwise, will you directly be reporting things in a hearing? Will you be making the hearing open to the public as well?

CHIEF CABINET SECRETARY EDANO: Another important perspective for the Committee is independence. This is something we decided in the Cabinet. We have delegated a chair to this Committee and will delegate its other members and basically as a Government ask them to keep the investigation open. However, as for the actual operations of the Committee, how to put it, I don't think that someone like me who is to be a subject of the investigation should say to them ‘please do your job this way.' If I led them on and made decisions for them, I think that we would conversely run into problems regarding independence. So we have requested that they keep the investigation open as a major basic policy, but as for the exact work of the Committee, that is better left up to its members to decide.

REPORTER: Again on the Nuclear Incident Investigation Committee, now that the chair has been decided, by when will the other members be decided? And how many people will be on the Committee?

CHIEF CABINET SECRETARY EDANO: We will be consulting with the chair on that; or rather, letting him decide, I think. We will of course assist him at the working level with logistical matters, such as making request to the persons named by the chair to sit on the Committee. That said, we want these decisions made as soon as possible, so I don't think this is a matter that should take half a month or a month or anything like that.

REPORTER: Do you mean that you also want to have the Committee's first meeting before such a time span?

CHIEF CABINET SECRETARY EDANO: Yes, I want to move as quickly as possible. I expect decisions to be made in about a week. This is a matter that we have started, but it is something that the Chair will decide. I don't think it is something about which we can directly tell him how to work. These are my expectations.

REPORTER: On a slightly different note, it seems that a member of the Republic of Korea (ROK) national parliament visited Kunashiri Island. What is the stance of the Japanese Government on this issue, and will you be issuing a response or something like that to the government of the ROK about this?

REPORTER: I have heard that the parliament member boarded a plane from the Sakhalin Island heading toward Kunashiri Island. I think that given the stance of the Japanese Government regarding the Northern Territories this is a matter that we cannot absolutely approve of. I think it is extremely unfortunate.

REPORTER: I would like to ask whether you, the Prime Minister, or any members of the Cabinet were already acquaintances of the two people named to chair each Committee this time.

CHIEF CABINET SECRETARY EDANO: Neither are acquaintances of mine. I have not checked this with the Prime Minister, but as far as I judge from the way he reacted when the choice of chairs was reported, I don't think he already knew them personally.

REPORTER: Concerning Mr. Sadakazu Tanigaki's question in the Diet regarding the response made at 6:00pm on March 12, which you just mentioned, according to the documents of the Nuclear Emergency Response Headquarters released by the Government, nothing has been updated since the materials were released on March 12. The materials indicate that the Prime Minister gave the order to cease freshwater treatment and begin injecting seawater as of 6:00pm. Since the Government created these documents, I am only left to think that there were at least some people in the Government that believed that the Prime Minister issued an order to commence seawater injection at 6:00pm, which leads me to believe that an order was given to change the method used. What are your thoughts on this matter?

CHIEF CABINET SECRETARY EDANO: It is my impression that some form of memorandum was created that implied that the Prime Minister had issued such orders and then was distributed and read probably at the Crisis Management Center. Nevertheless, how should I put it, it is unclear at present for what reason that memorandum was drafted. At that time, however, the situation was very tense and various things were happening all at once, so at the 6:00pm meeting there were not so many people. The idea was that if fresh water did not work then we should use seawater, and I have also heard that TEPCO even reported that the time needed for seawater injection operations would be a matter of hours. Given the situation, discussion was made on whether there was any risk related to seawater injection, and it was concluded that if it was possible to inject it, it should be injected as quickly as possible. So, I think that there is no contradiction in seeing a memorandum that could be read to imply that such an order was given.

REPORTER: Is it possible that the existence of a memorandum that implied that the Prime Minister ordered the injection of seawater at 6:00pm could have made its way to TEPCO somehow and prompted them to commence the actual injection of seawater?

CHIEF CABINET SECRETARY EDANO: I was not directly present at the 6:00pm meeting, but I hear that TEPCO was. If there was something that should have been relayed to TEPCO, they would have received that information there; however, I am not personally checking this matter.

REPORTER: As a memorandum was created by the Government that spawned such a misunderstanding, I can assume that unclear discussion was carried out during the meeting, leaving TEPCO staff with a false impression about what they should do. Is there not the possibility that the TEPCO staff mistook the dialogue for an official order?

CHIEF CABINET SECRETARY EDANO: I am not aware of the correlation between those points, but Special Advisor Goshi Hosono and others, I believe, have recalled the meeting with accuracy and have made a report about it. Since I was not at the meeting, I am not aware of anything more than that. I do not know whether someone at the meeting created a memorandum or not, but there is the possibility that someone that received a report on the discussion of the meeting created the memorandum by shortening, or omitting, the facts. However, I personally do not know about the specific circumstances.

REPORTER: Even though you were not present at the meeting, do you recall later agreeing to see the memorandum?

CHIEF CABINET SECRETARY EDANO: I do not recall seeing the memorandum at that point in time.

REPORTER: Regarding the TEPCO Financial Investigation Committee, the Government, for instance, is saying that it will consider the organizational structure of the company. Does that mean that there is the possibility that this investigative panel will compile a policy, or some survey results, concerning organizational revisions?

CHIEF CABINET SECRETARY EDANO: I believe that Mr. Shimokobe and others will decide whether this falls within the scope of a thorough revision of expenses conducted over the course of their strict asset valuation. Generally, these are issues concerning policies or systems, so perhaps the Committee will produce an estimate of how much the company would be worth if sold, but I do not believe it is the Committee's place to make the decision to sell or not.

REPORTER: Going back to the visit to the Northern Territories by an ROK parliamentary member, you said that the Government would respond resolutely after confirming the facts. Has the Government in some way expressed its disappointment to the ROK Government? Also, has the Government responded to, or does it plan to respond to the ROK's visit to the Northern Territories?

CHIEF CABINET SECRETARY EDANO: While it is truly unfortunate, we have confirmed that the individual boarded an airplane headed for Kunashiri, so I am left to believe that he will be visiting the Northern Territories. The Government is currently considering a response to this issue. Nevertheless, the ROK Government previously expressed that they were completely unconcerned about the issue. In other words, I am currently confirming whether or not it is the ROK Government's position to take actions contradicting the basic stance of the Japanese Government.

REPORTER: My question concerns the so-called Fukawa Incident. Today, the Tsuchiura branch of Mito District Court acquitted the two defendants. In consideration of this outcome and the coercive methods utilized to extract confessions, which their lawyers pointed out, some have begun calling for a move to make the interrogation process completely visible. Please comment on whether you intend to respond to these calls.

CHIEF CABINET SECRETARY EDANO: I am of course aware of the acquittal. However, this is the decision of a court so I would like to refrain from making personal comments in my capacity as Chief Cabinet Secretary.

REPORTER: How about in regards to the issue of making interrogations more open?

CHIEF CABINET SECRETARY EDANO: Generally speaking, it is my role to make such considerations or express my own opinions only after cases are concluded.

REPORTER: I'm sorry but I would like to ask a pretty detailed question. I understand your point about matters around the time of the start of the nuclear incident that were not recorded, and I think that for example, for the meeting at 6:00pm on March 12, those that were involved are confirming their memories with one another. Mr. Madarame and Deputy Chief Cabinet Secretary Fukuyama spoke about this a while ago. Will you be taking records of these conversations? Depending on how you look at it almost seems like you are all working to get your stories in line before the start of the investigation.

CHIEF CABINET SECRETARY EDANO: That's not that case at all. The people involved are taking care not to arouse that kind of suspicion. Therefore they gather everyone into one room, not conducting small group discussions or one-on-one discussions, for jogging each other's memories and confirming how much they remember. I think that the definition you may be using for “record” is rather strict. For the decision making process for political matters, we do have public documents that are supposed to be created if they can be. These conversations are not intended to help us decide on our intentions nor are they opportunities to undertake administrative work. It is rather an opportunity for each of us to confirm our memories of the situation. I think it is of a different nature from an official meeting for which we might create a record of the minutes.

REPORTER: About the public nature of the nuclear incident investigation, I don't want to suggest that I am opposed to the investigation being open, but when debating something of this nature, in general, when it comes to proper nouns and discussion of who said what and when, I think it is usual to obscure the names of the people in question. I think that this has also been the case a lot for matters of government administration. I worry that by making the investigation public, people will be unable to say what they want to say because their names will be attached to their comments. What do you think about that?

CHIEF CABINET SECRETARY EDANO: On that point, starting with Chair Hatamura, we hope that the members of the Committee will have judicial backgrounds. Such experience, consideration, and insight regarding confidentiality will be required. I have heard that Chair Hatamura agrees on this point. I want the Committee members to debate on this issue and come to a final decision regarding what to do about it.