Press Conference by the Chief Cabinet Secretary (Excerpt)

Opening Statement by Chief Cabinet Secretary Suga

• An overview of the Cabinet meeting
• The formulation of the Growth Strategy and Basic Policies for Economic and Fiscal Management
• The start of the Cool Biz campaign from May
• A meeting regarding the strategy for reducing fuel procurement costs
• Electricity supply-demand measures for summer 2013
• A new Basic Plan on Ocean Policy

CHIEF CABINET SECRETARY SUGA: I would like to give an overview of the Cabinet meeting. The meeting approved ten general and other measures, a legislation proposal, cabinet orders, and personnel decisions. With regard to statements by ministers, Prime Minister Abe and Minister Yamamoto made statements concerning the revision of the Basic Plan on Ocean Policy. The Minister of Economy, Trade and Industry made a statement concerning Trends among Small and Medium Enterprises (SMEs) in FY2012 and SME Policies in FY2013. The Minister for Internal Affairs and Communications made a statement concerning the consumer price index. Prime Minister Abe made a statement concerning acting Ministers while Ministers in charge are away on overseas visits, among other matters.

In ministerial discussions following the Cabinet meeting, Prime Minister Abe and Minister Amari made statements concerning the Growth Strategy and Basic Policies for Economic and Fiscal Management. Minister Yamamoto made a statement concerning the establishment of the Comprehensive Strategy on Science and Technology Innovation (tentative title). Minister Mori made a statement concerning Consumer Month. The Minister of the Environment made a statement concerning the extension of the Cool Biz period. Minister Yamamoto made a statement concerning the wearing of Okinawa kariyushi shirts during Cool Biz.

At today's ministerial discussions following the Cabinet meeting, Prime Minister Abe made the following statements concerning the Growth Strategy and Basic Policies for Economic and Fiscal Management. First, the Prime Minister asked that the Growth Strategy and Basic Policies for Economic and Fiscal Management be established before the G8 Summit, which will be held in mid-June. Secondly, he asked that ministers swiftly put together the outcomes of the considerations made by the various councils, including the Council for Science and Technology Policy, the Education Rebuilding Implementation Council, and the Regulatory Reform Council, so that these outcomes may be reflected in the discussions at the Industrial Competitiveness Council in mid-May at the latest. Thirdly, with regard to the Basic Policies for Economic and Fiscal Management, the Prime Minister stated that the Council on Economic and Fiscal Policy is holding discussions with a view to achieving both economic revitalization and fiscal soundness, among other objectives, and asked ministers to study this matter towards the establishment of the Basic Policies. In light of the Prime Minister's statements, Mr. Amari, the Minister in charge of Economic Revitalization and Minister of State for Economic and Fiscal Policy, who oversees the whole process, will coordinate wholeheartedly with the ministers concerned for the compilation of the Growth Strategy and Basic Policies for Economic and Fiscal Management.

With regard to the Cool Biz campaign, at today's ministerial discussions following the Cabinet meeting, the Minister of the Environment made a statement concerning this year's Cool Biz campaign. Same as last year, the Government has decided to start the Cool Biz campaign in May. Furthermore, the Minister of State for Okinawa requested ministers for their cooperation in adding Okinawa's kariyushi shirts to their Cool Biz wear options. For more information regarding Cool Biz, please direct your questions to the Ministry of the Environment.

Today, prior to the Cabinet meeting, the Minister for Foreign Affairs, the Minister of Economy, Trade and Industry, the Minister of the Environment, and I met for a meeting regarding the strategy for reducing fuel procurement costs. Following last month's ministerial meeting, discussions took place at the director-general level, and today, an action plan was compiled. I would like to highlight two items of the action plan. The first item is the strengthening of resource diplomacy and support measures. Next week, the Prime Minister will visit Russia, and the Minister of Economy, Trade and Industry will visit the U.S. On the occasion of these visits, Japan hopes to make progress on the Vladivostok liquid natural gas (LNG) project, on receiving the U.S.'s approval for exports of shale gas to Japan, and on other matters. The strengthening of the support measures of the Japan Bank for International Cooperation and the holding of the Second LNG Producer-Consumer Conference in Tokyo are also included in the action plan. The second item I would like to highlight concerns coal-fired thermal power generation. Today, it was reported that the Minister of Economy, Trade and Industry and the Minister of the Environment agreed on clarifying the environmental assessment procedures for coal-fired thermal power generation from the standpoint of increasing Japan's energy options and strengthening Japan's negotiating position. The content of this report is also included in the action plan. The two ministers will be providing more specifics, so please ask your questions at that time. In any case, the Government will make concerted efforts to reduce the cost of procuring fuels in accordance with the action plan.

The Electricity Supply-Demand Review Meeting, of which I am the Chair, was held in order to decide on electricity supply-demand measures for summer 2013. At the meeting, Minister of Economy, Trade and Industry Motegi reported that this summer, all areas serviced by Japan's electric power companies are forecasted to be able to secure more than the 3% minimum reserve margin necessary to ensure a stable supply of electricity. However, should anything occur, such as a major power source failure, it is possible that supply will become tight relative to demand. Currently in Japan, the various initiatives taken to revitalize the economy are gradually beginning to have an impact. In order to make power saving efforts, now firmly established in Japan, in a sure and not unreasonable way, while giving considerations to ensure that these efforts do not set back the economic revitalization, the Government has decided to request "power saving not accompanied by a numerical target." Power saving will be in effect from 9 am to 8 pm, July 1 to September 30. Also, in case electricity supply remains tight relative to demand as a result of a major power source failure or other reasons, a number of steps are being taken, including enabling electric power companies to interchange electricity over a wide area and in a flexible manner. Through these measures, the Government is doing all that it can to ensure a stable supply of electricity. The Government is intent on spearheading the power saving efforts. We kindly ask the people to cooperate with the power saving efforts. As the specific details will be announced by the Ministry of Economy, Trade and Industry (METI), I would like to ask you to forward your questions to METI.

Today, the Headquarters for Ocean Policy convened a meeting. A new Basic Plan on Ocean Policy was approved and decided by the Cabinet. The new Basic Plan on Ocean Policy will guide Japan's ocean policy. Moving forward, it is important that this plan is steadily implemented to realize a new maritime nation. For details, please direct your questions to Minister Yamamoto.

Q&As

• Fiscal rehabilitation targets
• Historical issues
• Constitutional revision
• Japan-Russia relations

(Abridged)

REPORTER: I would like to ask a question regarding fiscal rehabilitation targets. I understand that at the meeting of the Council on Economic and Fiscal Policy several days ago, you stated that it was necessary to review or examine the target of halving the primary balance deficit by 2015. My questions are, what was the motive behind this statement, and do you intend to examine this target, which I believe is an international pledge made by the Government?

CHIEF CABINET SECRETARY SUGA: There are fiscal health targets to decrease the deficit-to-GDP ratio of national and local primary balances to half the FY2010 ratio by 2015, and achieve primary surplus by 2020. These targets were established during the previous administration. The Abe administration too believes that steps must be taken to make these fiscal rehabilitation targets a reality. However, 2015 is just around the corner. As our administration is the one that will realize these targets, in any case, the view of our administration is not that we need to decide whether to continue upholding this commitment or defer the targets but that these targets may need to be carefully examined one more time. My statement was not necessarily meant to suggest a review of the targets or abandonment of fiscal soundness. I made the statement in the context of the need to ensure the realization of the targets.

REPORTER: If I may confirm once more about the Murayama Statement. At the meeting of the Budget Committee of the House of Councillors on April 22, the Prime Minister stated, as you stated yesterday, that while acknowledging or sharing the view that Japan caused tremendous damage and suffering to Asian nations, the Abe Cabinet will not stick with the entire Statement. A variety of things are written in the Murayama Statement. For example, it states that Japan followed a mistaken national policy or that through its aggression Japan caused such damage and suffering. Is the Abe Cabinet's position that it will not necessarily stick with these other sections of the Statement?

CHIEF CABINET SECRETARY SUGA: Statements by the Prime Minister have been issued on the occasion of the respective milestones. The Murayama Statement was issued on the occasion of the 50th anniversary of the end of World War II, and the Koizumi Statement was issued on the occasion of the 60th anniversary. As for the Abe administration, the Prime Minister has already announced that he would like to issue a future-oriented statement on the occasion of the 70th anniversary. As I stated here yesterday, Prime Minister Abe's statement will uphold the same views as past Cabinets with regard to these matters concerning Asia. In this vein, the Abe Cabinet has no intention at all to turn this issue into a political or diplomatic issue.

REPORTER: I very much understand what you are saying. However, in reality, this matter has whipped up a media frenzy in the Republic of Korea (ROK). There have been reports in the ROK questioning whether the Prime Minister is denying the war of aggression. The Prime Minister's current views have been disputed as an actual diplomatic issue. The Prime Minister has made statements which can be interpreted as keeping some elements but not keeping some elements of the Murayama Statement. This has caused widespread controversy. It seems to me that in response to this you need to explain now what your position is.

CHIEF CABINET SECRETARY SUGA: It is completely odd to dwell only on sticking or not sticking with the Murayama Statement. As I stated a moment ago, the respective Prime Ministers issued statements on the occasion of historical milestones. Therefore, it is as I stated yesterday. That is the bottom line.

REPORTER: This must be made clear. In the ROK, speculation is spreading about the extent to which the Abe administration is denying the war of aggression. So far, the Prime Minister has stuck with the story so to speak in acknowledging that Japan caused tremendous damage and suffering to Asia. The fact that the Prime Minister does not clarify his stance on other sections of the Statement, I believe, is now creating a diplomatic controversy.

CHIEF CABINET SECRETARY SUGA: I do not believe it has become a diplomatic issue.

(Abridged)

REPORTER: When you say that you will not turn this into a diplomatic issue, it sounds to me like you are not facing up to reality and, how shall I say, simply stating your wishes. Don't you think this is a little farfetched?

CHIEF CABINET SECRETARY SUGA: What I stated yesterday is the Cabinet's view regarding the Statement.

(Abridged)

REPORTER: No comments regarding anything else?

CHIEF CABINET SECRETARY SUGA: So, as I stated yesterday, the Abe Cabinet shares the same beliefs as past Cabinets. As I noted a short while ago, Prime Ministers issue statements on the occasion of the milestone of their respective times. For the 50th anniversary, Prime Minister Murayama issued a statement. For the 60th, Prime Minister Koizumi issued a statement. I do not believe everything in the Murayama Statement was kept. Yesterday, I noted not whether the Abe Cabinet would stick or not stick with the Murayama Statement but on which parts are essential. As I have stated in these press conferences, the Abe Cabinet would like to issue a new statement for the 21st century on the milestone of the 70th anniversary and will therefore launch an experts' meeting going forward.

(Abridged)

REPORTER: Japan's ally, the U.S., has supposedly expressed concerns to the Japanese Government informally through diplomatic channels regarding the Abe administration's historical perception as well as Japanese ministers' visits to Yasukuni Shrine, saying that these things will inevitably lead to the destabilization of the situation in East Asia. Can you verify the facts?

CHIEF CABINET SECRETARY SUGA: With regard to this, nothing has been brought to my attention.

REPORTER: I would like to ask a question regarding Constitutional revision. Previously, you stated that this would be "a focus point of the House of Councillors election." What do you think about the intensifying debate over Constitutional revision? For example, this morning's Sankei Shimbun published a preliminary draft of the Constitution.

CHIEF CABINET SECRETARY SUGA: With regard to Constitutional revision, as I have stated here before, opinions vary by party, so we would like to start by addressing the issue of the revision of Article 96 of the Constitution that many parties insist upon. Furthermore, there are a variety of debates. At the moment, Commissions on the Constitution are set up at the Diet. I expect that with all parties participating, sincere discussions will take place to reach a broad consensus regarding the modality of a Constitution that is suited to a new era, and on this basis, that public debates will intensify.

REPORTER: Related to this, today's print edition of my newspaper published a tentative proposal for the Constitution. Military possession and emergency provisions were among the items included in the proposal. Can you please share your comments on the proposal?

CHIEF CABINET SECRETARY SUGA: I imagine that going forward a variety of media outlets will be coming out with such Constitutional proposals. In the past as well, other newspapers published similar views on the Constitution. In any case, I expect that this will prompt more intensive debate on the Constitution among a wide range of people.

REPORTER: I would like to ask about the Japan-Russia summit meeting. According to today's Mainichi Shimbun report, it is anticipated that at the Japan-Russia summit meeting the two leaders will agree on, or issue a joint statement on, holding Japan-Russia summit meetings or foreign and defense ministerial meetings regularly or more proactively. Can you verify the facts? Also, you can please explain the intent or the aim of doing this?

CHIEF CABINET SECRETARY SUGA: I believe such details are still being worked out. Nevertheless, leading up to the Japan Russia summit meeting that Prime Minister Abe will be holding, some length of time has passed since the last summit meeting. I expect that with Russia being a neighboring country, the meeting will serve as a new start or a first step for the bilateral friendship and partnership.

(Abridged)

REPORTER: My question deals with the sovereignty restoration ceremony on April 28. Some members of the Russian domestic media have interpreted that Japan has given up on Russia returning the Northern Territories to Japan, and noted that this ceremony is a PR event for the domestic public. Can you please comment on this view as well as explain the Japanese Government's basic stance regarding the return of the Northern Territories?

CHIEF CABINET SECRETARY SUGA: The four islands are the territories of Japan. It is natural that Japan asserts this, and we will strongly urge for the attribution of the four islands. As for the timing of the returns, we seek the return of all four islands although there might be variations in timing.