Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

• U.S.-China summit meeting
• ROK-North Korea relations
• The Japan-ROK bilateral currency swap arrangement
• The revised figure for Japan's GDP for the January to March quarter
• The Nikkei Stock Average

REPORTER: A summit meeting was held between the United States and China at the weekend. Could you tell us the Government's appraisal of the summit meeting overall and also whether the Government has received any report from the United States about the content of discussions?

CHIEF CABINET SECRETARY SUGA: First of all I would like to state that the Government welcomes moves by the United States and China to advance mutual interaction, from the perspective of the peace and stability of the region and the wider international community. Prior to the U.S.-China summit meeting the Government has been in close communication with the United States Government, which I understand has responded in accordance with the position of the Government of Japan. The Government will continue to make efforts to strengthen the Japan-U.S. alliance and also seeks to call on China to return to the basic position of a mutually beneficial relationship based on common strategic interests, with a view to ensuring that individual issues do not impact our relations overall.

REPORTER: By what route will a report from the United States Government on the summit meeting come from? You have previously held telephone talks with Advisor to the President for National Security Affairs Thomas Donilon, so is it to be expected that a report will be forthcoming via that route?

CHIEF CABINET SECRETARY SUGA: As I have just stated, prior to the U.S.-China summit meeting the United States requested Japan to explain its views with regard to China and I provided just such a clear explanation. I believe that based on this explanation the United States will naturally have emphasized the position of Japan during the recent U.S.-China summit meeting. Although it is true that Japan and the United States are engaged in close cooperation through diplomatic channels, I would like to refrain from commenting about individual issues.

REPORTER: Working level consultations have been held between the Republic of Korea (ROK) and North Korea and it has been agreed that talks between the authorities of the two countries will take place on June 12. However, agreement could not be reached on a ministerial-level meeting. What is the reaction of the Government to the results of the meeting and what expectations are there for the outcome of the talks this week?

CHIEF CABINET SECRETARY SUGA: I am aware that working level consultations have taken place and that it has further been agreed for inter-Korean authorities talks to take place on June 12 and 13 in Seoul. With regard to the participants at the meeting this week, I believe that coordination is ongoing between the authorities of the ROK and North Korea. The Government of Japan would like to welcome the fact that North-South dialogue has been realized. The Government will continue to cooperate closely with the ROK, United States and other countries concerned with regard to the issue of North Korea.

(Abridged)

REPORTER: With regard to the Japan-ROK bilateral currency swap arrangements, 3 billion dollars' worth of currency swaps is due to expire on July 7. At the current point has any request been received from the ROK Government concerning consultations to extend the currency swap arrangement?

CHIEF CABINET SECRETARY SUGA: The Government will engage in considerations with the ROK on whether to renew the currency swap arrangements. At the current point I have not heard myself whether such considerations have taken place.

REPORTER: The current ROK Government has been strengthening its critical stance of the Government of Japan. Given this background will the Government respond positively if a request is made to extend the currency swap arrangement?

CHIEF CABINET SECRETARY SUGA: The ROK is a neighboring country and therefore the Government would seek to consider the issue by taking a broad perspective of relations into account.

REPORTER: The revised figures for Japan's GDP for the January to March quarter have been released recently and have been revised upwards to an annualized growth rate in real terms of 4.1 percent. This figure exceeded market expectations. What is the reaction of the Government to these figures?

CHIEF CABINET SECRETARY SUGA: I would like to welcome these figures. There are a number of factors behind this growth, which I have mentioned previously, including a significant increase in personal consumption. Another factor is that exports have increased against a backdrop of underlying strength in overseas economies. In addition, capital investment showed a significant improvement over initial projections. In the preliminary figures it stood at minus 0.7 percent, which has been revised today to minus 0.3 percent. If we look back to previous figures we see that in the July to September quarter capital investment stood at minus 3.3 percent. In the October to December quarter it had improved to minus 1.5 percent, and today the revised figure is minus 0.3 percent. I believe that this demonstrates improvement in the capital investment environment, which is causing capital investment to pick up. Whatever the case, the government will continue to implement the three prongs of economic revitalization in an integrated manner, in order to overcome deflation and achieve private sector-led sustainable economic growth.

REPORTER: I usually only ask about negative incidents, but today the Nikkei Stock Average has rebounded. What is your view of the reason for this upturn?

CHIEF CABINET SECRETARY SUGA: I have said before that the Government does not waver between hope and despair just because share prices have gone down. It is undeniable that the real economy of Japan is now picking up, as can be seen in the GDP growth rate for the January to March quarter, which was revised upwards, above market expectations, to an annualized rate of 4.1 percent. As I have stated frequently in this press conference the Government has confidence in the economic outlook and will continue to implement thoroughly the three prongs of economic revitalization with a sense of speed.