Press Conference by the Chief Cabinet Secretary (Excerpt)

Opening Statement by Chief Cabinet Secretary Fujimura

CHIEF CABINET SECRETARY FUJIMURA:First, I will give an overview of the Cabinet meeting. The meeting approved five general measures, and also the promulgation of cabinet orders and personnel decisions. With regard to statements by ministers, Prime Minister Noda made a statement concerning the holding of a meeting of the National Strategy Council, and the Minister for Foreign Affairs made a statement concerning the abolition, etc. of the Overseas Economic Cooperation Council, among other councils. I made a statement on the abolition of the Ministerial Meeting on Economic Measures, among other councils. Minister Furukawa made a statement concerning comprehensive measures in response to yen appreciation. The Minister of Finance made a statement concerning the FY2011 supplementary budget. The Minister for Internal Affairs and Communications made a statement concerning the holding of the National Governors' Conference.

In ministerial discussions following the Cabinet meeting, Prime Minister Noda and Minister Kawabata made a statement concerning the promotion of reforms for regional sovereignty. Prime Minister Noda made a statement concerning the holding of a recommendation-based policy review by the Government Revitalization Unit. Minister Renho made a statement concerning the holding of a recommendation-based policy review by the Government Revitalization Unit, among other items. The Minister for Foreign Affairs; the Minister of Economy, Trade and Industry; and Prime Minister Noda made a statement concerning the flooding in Thailand. The Minister of Economy, Trade and Industry made a statement concerning his visit to the United Arab Emirates, Saudi Arabia, China, and France.

At the Cabinet meeting, it was decided that the National Strategy Council will be holding a meeting. As a "control tower" overseeing important national policies relating to Japan's domestic and overseas affairs as well as a driving force for promoting these policies, the National Strategy Council will be compiling key basic policies and conceptualizing a mid- to long-term national vision. The Council will be chaired by the Prime Minister and vice-chaired by me and the Minister for National Policy. The other permanent members of the Council will be: the Minister for Internal Affairs and Communications; the Minister for Foreign Affairs; the Minister of Finance; and the Minister of Economy, Trade and Industry. The experts from the private sector are those I reported to you earlier. The first meeting will be held by mid-October, and the schedule is now being coordinated among the relevant people. In addition, in establishing the National Strategy Council, existing councils were reviewed, and as a result, 18 of them were abolished. I stated at the Cabinet meeting that first, with regard to the operation of the councils which still exist, creative efforts should be made in accordance with the discussion themes of the councils. Secondly, from now on, the establishment or the holding of a meeting of a new council chaired by the Prime Minister will be restricted to those which are recognized as truly necessary. Whether or not that is the case will be studied and determined by the Chief Cabinet Secretary based on the Prime Minister's orders. Thirdly, I asked the ministers to also proactively review the councils which are established at their respective office and ministries.

Also, with regard to the large-scale flooding in Thailand and the resulting massive damage, I would like to express my deep condolences and sympathy to those affected. The flooding in Thailand was one of the discussion items at today's ministerial discussions following the Cabinet meeting. Based on the Prime Minister's instructions, it was decided that I will be leading the considerations regarding the assistance measures of the Japanese Government and the efforts to quickly put these assistance measures together. There is the saying, "A friend in need is a friend indeed." We will never forget Thailand's kindness for its prompt and generous assistance in the wake of the Great East Japan Earthquake. It is our belief that repaying the kindness of a true friend when it is suffering from such large-scale disaster is essential for obtaining the trust of the international community. Furthermore, Thailand is a major center of production for Japan's manufacturing industry and also has a large Japanese population. Japan, therefore, has a heavy presence in Thailand. This makes Thailand's expectations from Japan for coping with the situation and restoration that much higher, and we intend to compile careful measures that will not be counter to expectations.

Also, this morning, a meeting of the Council on the State of the Economy was held before the Cabinet meeting. Based on the discussions held, the comprehensive measures in response to yen appreciation were approved at the Cabinet meeting. Taking into account the recent mid-term report, the latest comprehensive measures in response to yen appreciation identified three priorities: (1) Mitigating the "pain" of yen appreciation; (2) Building a strong economy which will not succumb to risk; and (3) Thoroughly taking advantage of the benefits of yen appreciation. The measures include not only those to "protect" against yen appreciation, such as employment creation and supporting measures and the expansion of financial assistance to small- and medium-sized enterprises (SMEs). They also include "aggressive" measures, such as those to strengthen competitiveness by expanding the subsidies for companies building new facilities in Japan, etc, and those to promote overseas mergers and acquisitions (M&As) by taking advantage of the strong yen. Moving forward, efforts will be made to quickly submit to the Diet and pass the third supplementary budget, an estimate of which was approved today, and the measures will be fully translated into action. I believe Minister of State for Economic and Fiscal Policy Furukawa will be giving a report on the details.

Next, I would like to discuss the second meeting of the Ministerial Meeting on Okinawa that was held. The relevant ministers who visited Okinawa from last week through this week reported on the outcomes of their visits to Okinawa, respectively. Information was shared, and a candid exchange of views took place. While the ministers reported on the difficult circumstances, etc. surrounding Okinawa Prefecture's support for the relocation of Futenma Air Station to Henoko and so on., we confirmed that the Government will continue to provide sincere explanations to the people of Okinawa Prefecture and seek their understanding based on the Japan-U.S. Agreement. Also, with respect to the development and promotion of Okinawa, the Minister of State for Okinawa and Northern Territories Affairs has received a variety of requests from the Governor of Okinawa and municipalities, and the Government will be making efforts to be able to take specific initiatives as we work to formulate the budget at the end of this fiscal year.

Next, I would like to discuss the meeting of the Security Council, which was held before the Cabinet meeting. The meeting deliberated the key items among the Defense Program of FY2011. The decisions made at the meeting are as stated in the material distributed to you. For details on the equipment and so on, please direct your questions to the Ministry of Defense.

Q&As

(Abridged)

REPORTER:It is being reported that Libyan former leader Muammar al-Gaddafi has died. How do you take this news and - as I am sure that Libya is to launch a new government - how will the Government of Japan respond to the creation of a new Libyan Government?

CHIEF CABINET SECRETARY FUJIMURA:It is my understanding that it is not only the media, but that Libya's interim government has made an official announcement. The Japanese Government views this event as a tremendously important step for the Libyan Government in the formation of a new nation. Japan first expresses its anticipation for armed conflict in Libya to cease and for public order to stabilize as quickly as possible. At the same time, moving forward, Japan looks forward to Libya creating an environment that will facilitate full-fledged reconstruction, including the prompt establishment of a cohesive interim government. Utilizing our own knowledge and technology, Japan will continue to support efforts aimed at new nation-building with the participation of all Libyan citizens with the cooperation of the international community.

REPORTER:On a related note, in his speech in New York, Prime Minister Noda announced that an ODA loan of 1 billion yen would be disbursed for the Arab Spring movement. In consideration of the current situation - this milestone in Libya - is the Government considering any changes in terms of size or application for the yen loan?

CHIEF CABINET SECRETARY FUJIMURA:Japan already recognizes Libya's Transitional National Council (TNC) as the country's government, and has already provided assistance totaling 8.2 million dollars, including medical assistance. Furthermore, Japan made a request to the Sanctions Committee of the United Nations Security Council to unfreeze 1.5 billion of the 4.4 billion dollars in assets held by Muammar al-Gaddafi, which Japan had previously frozen, for emergency humanitarian use. This was approved at the end of September. Moreover, a Ministry of Foreign Affairs survey mission was dispatched to Tripoli at the end of September and has held talks with the Libyan TNC. Japan will continue to cooperate with the international community to support Libya's nation-building efforts. Details regarding the Prime Minister's comment about the 1 billion dollars at the United Nations General Assembly are going to be determined in the near future.

(Abridged)

REPORTER:I would like to ask about the meetings that the Government decided to discontinue today. These include several meetings concerning issues related to social security, but what was the Government's reasoning for abolishing meetings on, for example, the pension records problem - the Council for a New Pension System - and the Council on Comprehensive Measures to Prevent Suicide?

CHIEF CABINET SECRETARY FUJIMURA:As you are fully aware, there were a significantly large number of meetings. One idea for better organizing this meeting structure was, in light of the role and composition of the National Strategy Council, having the National Strategy Council take over all of the major meetings. However, no decision has been made yet concerning the specifics, such as whether there will be subcommittee meetings and so on. Another aspect of the decision was the discontinuation of meetings that had already completed their purpose. Yet another reason is likely due to the legal aspects. The revision of a meeting structure that was established by a law should only be discussed if revisions are being made to the policy objectives contained within the law that serves as the basis for the meeting's original creation. I do not believe that changes to existing law, however, would be appropriate during this organizational action, which simply sought to better organize individual meetings.

(Abridged)