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| Top Speeches and Statements by Prime Minister |
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| (Provisional Translation) |
Press Conference by Prime Minister Junichiro Koizumi at the Beginning of the Year 2003 |
January 6, 2003 |
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[Opening Statement]
A Happy New Year to you all. I believe this year will again be one in which many things happen and many challenges come. I will exert every effort in carrying out my duties, and would like to ask you for your kind cooperation. I am open to your questions now, which could be many.
(Question) I would first like to ask a question concerning the economy. Although you always say that you are putting all your efforts into overcoming deflation, at the same time you are also saying that you are accelerating the disposal of non-performing loans. I believe that there are many economists pointing out that, if you accelerate the disposal of non-performing loans, the result would be that non-viable companies would fail, thus further increasing non-performing loans and increasing deflationary pressure on the economy. I would like to ask you how you intend to proceed to overcome deflation.
(Prime Minister Koizumi) Overcoming deflation and curbing deflation are both means of achieving economic revival. As you have pointed out, if we proceed with the disposal of non-performing loans, the deflationary situation will worsen. What criticisms were made at the time when we were not proceeding with the disposal of non-performing loans? I would remind you that at that time the overwhelming majority agreed with the opinion that because the disposal of non-performing loans was not proceeding, neither was the economy recovering. Now that we are actually proceeding with the disposal of non-performing loans, critics only raise the negative aspects. Something seems to be wrong with their attitude.
Could economic revival be possible without proceeding with the disposal of non-performing loans? By proceeding with the non-performing loan disposal, there could be a temporary situation whereby business bankruptcies and unemployment increase. In response, I have taken substantive employment measures. In the supplementary budget from now, I am also resolved to see that budget implementation is seamlessly carried through, with due regard being paid to employment measures.
Given these circumstances, I am not saying that we will be immediately able to overcome deflation, nor realize economic revival. I am resolved to achieve economic revival through proceeding along the path of administrative and fiscal reform, which I have followed to date since my appointment as Prime Minister. We have been taking measures as far as possible in fiscal and monetary policies. In such circumstances, through the mobilization of all policy means such as deregulation, the disposal of non-performing loans, expenditure review, and tax reform, the Government of Japan is tackling the issue of curbing deflation together with the Bank of Japan. As for monetary policy, it would not be appropriate for me to comment in detail, given the independence of the Bank of Japan. However, I do believe that we, together with the Bank of Japan, should be taking monetary and other measures.
Also, in fiscal policy, a fundamental means, so to speak, we are taking measures to the fullest extent, heavily depending on government bonds, which are more than 40% of the total revenue. For the tax system, even under such a severe fiscal situation, during the course of the next fiscal year, we will carry out an advance tax cut of 2 trillion yen. Although extra taxes amounting to approximately 200 billion yen will be levied on liquor and tobacco, we will still achieve an advance tax cut amounting to a balance of 1.8 trillion yen. Concerning monetary policy, as you are well aware, interest rates are at zero. The Bank of Japan is dealing with monetary easing measures.
Given such circumstances, I am pressing forward with comprehensive measures for structural reform including administrative and fiscal reform, a review of regulations and expenditure, and the strengthening of the financial system. We are taking drastic measures against structural issues and without these there will be no economic revival for Japan. These are policies and measures that I have undertaken since my appointment. There will be absolutely no change whatsoever from this track. I believe that these policies and measures will lead to the future economic revival of Japan.
I am dedicated to setting a firm and unwavering reform track this year also.
(Prime Minister Koizumi) I visited North Korea on September 17, 2002 and issued the Japan-DPRK Pyongyang Declaration. I met directly with the leader of North Korea, Chairman Kim Jong-Il, and we signed the Japan-DPRK Pyongyang Declaration. Both parties will faithfully implement the Pyongyang Declaration that we signed. I believe this is what is most necessary and important.
The Japan-DPRK Pyongyang Declaration clearly stresses the importance of security issues, in addition to the issue of abductions. International law will be observed; concerns related to the nuclear issue will be dispelled. A comprehensive approach must be taken to address issues that are intertwined with past, present and future Japan-North Korea relations. When the Japan-DPRK Pyongyang Declaration is truly faithfully implemented, the relations between our two countries will be normalized. We have to continue to pursue this.
In this regard, I believe that while the issue of abduction is an issue between Japan and North Korea, security issues and the nuclear issue, are not issues that concern only Japan and North Korea. The Republic of Korea and the United States of America, and still further the People's Republic of China and the Russian Federation, have grave concerns. So does the European Union, as well as the International Atomic Energy Agency (IAEA). These concerns about nuclear development on the part of North Korea must be eliminated in cooperation with the international community. Japan must tenaciously persuade North Korea that wiping out these concerns will bring about the largest benefit to North Korea as well.
The reason I visited North Korea and met with Chairman Kim Jong-Il last year was that I want to normalize the abnormal situation that exists between Japan and North Korea. I also wanted to emphasize that making the transition from hostile Japan-North Korea relations to cooperative relations would be most beneficial to North Korea as well. Of course, this is the case for Japan as well. Moving from hostile to cooperative relations between Japan and North Korea would mean that the degree of safety would be greatly increased on the Korean Peninsula and the world as a whole and lead to peace and stability. It was with this conviction that I approached the Summit Meeting. Even now there is absolutely no change in my thinking in this regard.
In the future, as this is a negotiation, I anticipate many twists and turns. I believe that this is not just a matter of concern for Japan and North Korea, and also think that it is crucial to tenaciously stress to the North Korean side the importance of fostering cooperative relations with the United States, the Republic of Korea, surrounding countries and the international community.
Given these circumstances, I am not overly optimistic. However, I intend to somehow outline a path for normalization of relations between Japan and North Korea.
Also, there will be the elections for the presidency of the LDP in September this year. What is your stance concerning this election?
(Prime Minister Koizumi) I recognize that there has been great interest in the dissolution of the House of Representatives since last year. It is already over two and a half years since the last general election. Since it will be three years since the last election in June this year, if you are a Diet member it would be reasonable to expect that the House of Representatives will be dissolved. I have been elected ten times over a career in the Diet that spans 30 years, meaning that there has been a general election once every three years on average. During my career there has been only one general election which was held after the Diet had run for its full elected term. There is probably just one case that an election of the House of Representatives has happened after the full elected term during the post-war period. I imagine that Diet members start their preparations with the feeling that the next election could happen at any time, once two and a half years have passed.
For that reason, I can understand that the issue of whether the election will be held is always being raised, but I do not have the intention to dissolve the House of Representatives this year. My term of office as president of the LDP will expire in September. While I recognize that there is discussion that connects the presidential election of the LDP and the dissolution of the House of Representatives, I have not a slightest intention of connecting these two. When September comes the presidential election will take place in an orderly manner as planned. I believe that it has to take place as planned.
I was reelected on the previous occasion. What judgments will LDP party members and Diet members make about my achievements in the intervening period? What I need to do is to wait for and see their judgments. Although there are those who think that I will dissolve the House of Representatives in order to advantageously run the presidential election, I am not of this opinion at all. It is best to conduct the presidential election in a straightforward manner.
Besides, it seems that there are some LDP members of the House of Representatives who clearly say that I will not be reelected. While they are free to have such opinions, I think it better to see what happens at the time, and make a judgment based on the situation then. I believe that there will be no growth without reform. I am the President of the LDP and the Prime Minister of Japan who has emerged under this policy. I will not budge an inch from this reform track. When the time comes, it will depend on how LDP Diet members and party members evaluate the reform track that I have charted.
So, I have no intention of connecting the dissolution of the House of Representatives with the presidential election, and at this point in time I see no reason why the House of Representatives should be dissolved during the course of this year. At present the LDP alone holds more than half the seats in the House of Representatives. The members of New Komeito and the New Conservative Party which has been formed just recently have also said they will cooperate with the Koizumi Cabinet. While maintaining the three-party coalition, we will cooperate to advance the reform track. Is it not the case that it all comes down to this? I, therefore, have no intention of dissolving the House of Representatives.
(Prime Minister Koizumi) Thinking about the economic conditions to come, I believe the decisions of the Bank of Japan will become considerably important. In regard to monetary policy, the business community has great interest in the measures taken by the Bank of Japan. In light of this, there seems to be much rumor going on about who will become the successor to Governor Masaru Hayami, whose terms ends in March 2003. Regarding the new Governor of the Bank of Japan, I believe it is desirable to have someone who is proactive about combating deflation. There is independence on the part of the Bank of Japan about monetary policy and I cannot say much, but I want to appoint someone who will actively take part in combating deflation and make appropriate judgments on measures to be taken, listening fully to the voices from various sectors. I also expect sufficient insight on the international situation. I believe we must select an appropriate person who will fulfill these conditions. At this point in time, Governor Hayami is firmly taking upon these tasks, so I believe that this is not the time to raise specific name of his successor.
(Prime Minister Koizumi) I will leave Japan on January 9 to visit the Russian Federation. While in Russia I will hold talks with President Putin and we will not only discuss future issues concerning Japan-Russia relations, but of course also cover the issue of North Korea. In fact, before my visit to North Korea on September 17 last year, I received a direct telephone call from President Putin. I heard his account of his meeting with Chairman Kim Jong-Il, as well as his impressions of the North Korean side. I was able to obtain advice and exchange views.
I then visited North Korea. Upon my return, I held telephone talks with President Putin again, and we talked about close cooperation concerning the North Korean issue as a part of Japan-Russia relations now and in the future..
In addition, my visit to North Korea was highly evaluated by President Putin and President Putin offered the highest encouragement, saying that the Japan-DPRK Pyongyang Declaration was the greatest result that Japan could have hoped for at that time.
Based on these circumstances I will be holding talks with President Putin. With regard to North Korea, Russia already has diplomatic relations with North Korea and maintains a friendly relationship with that country.
In August last year Chairman Kim Jong-Il paid a visit to Russia and in the talks held with President Putin, I believe that the international situation was also discussed, in addition to various Russia-North Korea issues. Japan must work on North Korean issues in partnership with Russia and China, both of whom have diplomatic relations with North Korea.
In particular, with regard to the nuclear and security issues, both Russia and China share borders with North Korea. They also have friendly relations with North Korea. When considering the current state of Russia-North Korea relations, I believe that Russia has considerable influence on North Korea. What is more, President Putin has certain perspectives on the country that Japan may not have.
Based on such points, on my upcoming visit to Russia I will discuss the future for Japan-Russia relations. Russia has changed since the Soviet era, from a period of confrontation with the United States of America, to solidarity between Russia and the United States.
In addition, it was also decided by the G7 that Russia will participate in the Summit process as a full member.
In four years time the G8 Summit will be held in Russia. In other words, the Soviet structure has been transformed into the Russia of President Putin. The system has changed in Russia, with a move to democracy on the political front, and the adoption of market economy on the economic front, coupled with full membership of the G8 Summit process and sharing common values. Such changes in the international environment probably provide many areas in which Japan-Russia cooperation will be possible, notwithstanding the fact that certain troublesome issues still remain including the Northern Territories and the conclusion of a peace treaty. Keeping in mind the changes in international relations, I would like to make this visit to Russia and hold talks with President Putin. Of course I am also seeking to cooperate with Russia on the issue of North Korea.
(Prime Minister Koizumi) As for this issue, currently there are inspections being conducted and the situation is that the report of those inspections will be submitted to the United Nations Security Council by late this month. We will think about what to do after we see what happens after the results of the inspections have been released and it is not appropriate to have discussions based on what has not occurred yet at this point. Since last year, we have stated that we would like to have the United States take a stance of international cooperation in tackling with the issue of Iraq. In dealing with the issue, the Government of Japan will take its own initiative based on the policy of international cooperation while taking into consideration our alliance with the United States. |