iProvisional Translationj Opening Statement by Prime Minister Junichiro Koizumi at the Press Conference following the Cabinet Reshuffle September 30, 2002

Since assuming the office of Prime Minister in April 2001, I have been tackling structural reform and, based on the experiences and achievements thus far, I have reshuffled my Cabinet, aiming to create a new structure in order to launch my policy of "no growth without reform" onto a firm orbit. In particular, in terms of my basic policy, it is my recognition that the issue of non-performing loans that permeates the Japanese economy hinders its economic revitalization and that the Government, together with the Bank of Japan, should tackle this issue of non-performing loans in the interests of economic rebirth, aiming to resolve the issue of non-performing loans in FY2004. I understand that this will be a major domestic challenge as we aim for economic rebirth. Furthermore, regarding administrative fiscal reform, we must accelerate measures to promote the shift from the public to the private sector and from the central to the local governments, and to leave to the private sector that which can be done by the private sector, as well as to promote development of unique regional communities. I will advance the issue of the privatization of the highway-related public corporations and prepare for the establishment of the Postal Public Corporation as the first step toward privatization of the postal businesses. A comprehensive and integrated approach must be taken to issues involving government-affiliated financial institutions, private sector financial institutions, the Fiscal Loan and Investment Program, and reform of special corporations. I intend to accelerate these reforms. On the diplomatic front, I believe that, in solidarity with the international community, enhancing its cooperative relations with all nations, and with an awareness of the role that it is to play, Japan must play a role that contributes to the peace and stability of the world, particularly as we approach the resumption of normalization talks with North Korea. So all in all, in the difficult circumstances we face both on diplomatic and domestic fronts, I have reshuffled my Cabinet, aiming to advance steadily along the path of reform, even little by little. The difficulties faced by the Japanese economy will continue. Nevertheless, aiming for a better tomorrow, I intend to implement boldly and flexibly the reforms that need to be carried out now in a spirit of no fear, no hesitation and no constraint of past precedent. That is the perspective from which I have resolved to make this Cabinet reshuffle. Thank you for your attention.