Press Conference by the Chief Cabinet Secretary (Excerpt)

Opening Statement by Chief Cabinet Secretary Fujimura

CHIEF CABINET SECRETARY FUJIMURA: I would first like to give an overview of the Cabinet meeting. The meeting approved 14 general measures and also cabinet decisions and personnel decisions. With regard to statements by ministers, Minister Nakagawa made a statement concerning the FY2011 Measures for Crime Victims. The Minister of Justice made a statement concerning FY2011 Measures for Human Rights Education and Enlightenment.

Q&As

• Government's proposal to appoint two persons as members of the Policy Board of the Bank of Japan

(Abridged)

REPORTER: Yesterday at the Diet you proposed Mr. Kiuchi of Nomura Securities Co., Ltd., and Mr. Sato of Morgan Stanley as Policy Board members of the Bank of Japan, both of whom are economists. I would like to ask the reason why you considered the appointment of these two persons appropriate. Also, according to a number of press reports it is likely that there will be a vote on the appointments within the week. Given that there is the so-called "10-day rule" relating to such procedures, I wonder whether the Government is seeking to put the appointments to a vote within the week if at all possible?

CHIEF CABINET SECRETARY FUJIMURA: First of all, I would like to briefly introduce the two persons who have been proposed as members of the Policy Board of the Bank of Japan. Mr. Takahide Kiuchi first joined Nomura Research Institute Ltd., after which he has spent his entire career involved in the financial markets. He is currently Managing Director and Chief Economist at the Financial & Economic Research Center, Nomura Securities, where he has ably demonstrated his abilities at analyzing and forecasting trends in the Japanese economy from an international perspective. He also has a wealth of experience working overseas and is therefore highly knowledgeable concerning international finance. Mr. Takehiro Sato joined Sumitomo Bank at the beginning of his career. He currently works as a Managing Director of Morgan Stanley MUFG Securities, where he is Chief Economist and head of the economic research and securities research departments. He has engaged in a wide range of research activities in the financial sector over the years. I proposed these two persons to the Diet as members of the Policy Board of the Bank of Japan, given their high degree of knowledge in economic and financial fields, which makes them eminently appropriate for the position. The process for the approval of these appointments will be as you have stated. As there is a 10-day rule in the Diet, the Government is in no way attempting to push through the approval during this week. Our position is that we would like the Diet to make a decision as quickly as possible.

REPORTER: Previously the proposed appointment of Mr. Ryutaro Kono was rejected by the Diet, and in comparison to him these two candidates seem to be more responsive to monetary easing. Were there considerations of such monetary policies that were behind the reason these two people were selected as candidates?

CHIEF CABINET SECRETARY FUJIMURA: The reasons for the selection are those that I have just outlined. You have just mentioned Mr. Kono, and I would like to point out that Mr. Kono and also the currently proposed candidates Mr. Kiuchi and Mr. Sato all share similar attributes in that they are all private sector economists who are highly regarded by those involved in financial markets. The selection of the current proposed candidates was therefore decided based on the perspectives I have just described.

(Abridged)