Prime Minister Naoto Kan held the 12th meeting of the Local Sovereignty Strategy Council at the Prime Minister's Office.

Discussion took place on reforming ministerial branch offices, introducing subsidies in the form of block grants, and revising the system of obligations (gimuzuke) and frameworks (wakuzuke) imposed [by the central government] on the regions [as a condition for using grant funds], among other matters.

The Prime Minister said in his opening address, "The reform of ministerial branch offices was again on today's agenda. We have already made the decision to transfer authority on this to the regions. I would like to decide on a clear direction as to how we should proceed with this transfer, what must be done to further improve the system of block grants - which has been making a remarkable progress - and the third revision of the system of obligations and frameworks."