Press Conference by the Chief Cabinet Secretary (Excerpt)

Opening Statement by Chief Cabinet Secretary Suga

• An overview of the Cabinet meeting
• Personnel decisions
• Cabinet approval on the mid-term fiscal plan
• Considerations towards the decision to raise consumption tax
• Prime Minister's instructions given at the latest Nuclear Emergency Response Headquarters meeting
• The first meeting of the Headquarters for Healthcare and Medical Strategy Promotion
• The fourth meeting of the Headquarters on Creating Dynamism through Agriculture, Forestry and Fishery Industries and Local Communities

CHIEF CABINET SECRETARY SUGA: I would like to read out several announcements. Regarding the overview of the Cabinet meeting, the meeting approved four general measures, cabinet orders, and personnel decisions.

With regard to statements by ministers, Prime Minister Abe made a statement concerning the mid-term fiscal plan and FY2014 guidelines for budget requests. Minister Amari made statements concerning the mid-term fiscal plan, the FY2013 economic trends, and mid- and long-term economic and fiscal preliminary calculations. The Minister of Finance made a statement concerning the FY2014 guidelines for budget requests. The Minister for Internal Affairs and Communications made statements concerning the FY2014 organization and personnel quota requests and other related matters, reflecting the results of policy evaluation in FY2014 budget requests, local government finance in relation to the FY2014 guidelines for budget requests, and demands for tax system reforms for FY2014. Minister Inada made a statement concerning reflecting the results of the review of administrative programs in FY2014 budget requests. The Minister for Foreign Affairs made a statement concerning the holding of the ASEAN-Japan Commemorative Summit. The Minister of Education, Culture, Sports, Science and Technology and Minister Yamamoto made statements concerning the launch of H-II transfer vehicle "KOUNOTORI4" (HTV4) by H-IIB Launch Vehicle No. 4. Prime Minister Abe made a statement concerning acting ministers while ministers are away on overseas visits, among other matters.

In ministerial discussions following the Cabinet meeting, Prime Minister Abe, Minister Amari, and the Minister of Finance made statements, respectively, concerning the way forward for proceeding with the review towards a decision about raising the rate of the consumption tax. I made a statement concerning the acceleration of decontamination and other work and strengthening the system for ensuring the safety of nuclear power. Minister Furuya made statements concerning programs which should be prioritized for promoting national resilience and concerning damages caused by heavy rainfall during the rainy season and other events. Likewise, the Minister for Internal Affairs and Communications made a statement concerning the advance distribution of local allocation tax in response to damages caused by heavy rainfall and other events.

I would like to report on the personnel affairs decided at today's Cabinet meeting. With the retirement of Supreme Court Justice Yukio Takeuchi on July 19, the Cabinet has decided to appoint Director-General of the Cabinet Legislation Bureau Tsuneyuki Yamamoto as Mr. Takeuchi's replacement and to appoint Ambassador Extraordinary and Plenipotentiary of Japan to France Ichiro Komatsu to the post of Director-General of the Cabinet Legislation Bureau. Furthermore, based on mutual votes of commissioners, the Cabinet has decided to assign Commissioner Teruhiko Kawato to the post of President of the Board of Audit.

Next, I would like to report on personnel decisions related to the post of Special Advisor to the Cabinet. The Cabinet has decided to appoint commentator, Mr. Taichi Sakaiya, and Professor at the Graduate School of Sport Sciences, Waseda University, Mr. Takeo Hirata, as Special Advisors to the Cabinet, effective today. The Prime Minister will give them letters of assignment this afternoon. Mr. Sakaiya will provide information and offer advice to the Prime Minister regarding the growth strategy, based on his extraordinary expertise in the economics field from serving as the Director-General of the Economic Planning Agency, as Special Advisor to the Cabinet, among other positions. Mr. Hirata will provide information and offer advice to the Prime Minister regarding sports, health, and resource strategy, based on his extraordinary expertise in the sports and resource energy fields through working with the Ministry of Commerce, Trade and Industry, Agency for Natural Resources and Energy, Japan Football Association, and Japan Sports Association. The details regarding these personnel decisions are as shown in the material in front of you.

I would like to report on personnel affairs relating to the Cabinet Office which were decided by today's Cabinet meeting. Effective August 8, Director General for Disaster Management Yasuo Harada of the Cabinet Office will be assigned to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). Mr. Harada will be replaced by Mr. Hirofumi Hihara from the Minister's Secretariat, MLIT.

Today the mid-term fiscal plan was approved at the Cabinet meeting. In light of the Basic Policies on Economic and Fiscal Management and Reform, the plan is designed to shape initiatives for achieving the goal of putting public finances on a sound footing while also aiming to complete a positive cycle of sustainable private demand-led growth and fiscal soundness.

More specifically, we will set specific targets for improving the primary balance of the country's general accounts in order to achieve the goal of halving the fiscal 2009 national and regional governments' primary balance debt to GDP ratio before 2015. Furthermore, the plan introduces initiatives to achieve our goal of bringing the national and regional governments' primary balance into surplus by 2020. In keeping with the mid-term fiscal plan, we are determined to diligently follow through on our initiatives for economic revitalization and achieving fiscal soundness.

During today's ministerial discussions, the Prime Minister gave instructions in relation to considerations towards the decision to raise consumption tax. It was decided that intensive review meetings concerning the economic and fiscal situation are to be held in order to specifically hear the opinions of experts and specialists who will be invited from wide-ranging fields in the private sector. It is hoped that through these meetings we will gain understanding of factors we must be alert to in relation to economic and financial management and how we are expected to respond in order to facilitate comprehensive consideration of the economic situation in relation to the raising of consumption tax. As for the intensive review meeting, Minister Amari, Minister Aso, Bank of Japan Governor Mr. Kuroda and four private sector members who also all serve on the Council on Economic and Fiscal Policy will hold a meeting as soon as possible after the summer holidays. Please ask Minister Amari if you would like to know any further details on this matter.
Following the Prime Minister's instructions given at yesterday's Nuclear Emergency Response Headquarters meeting, I asked all relevant ministers to put into action the plan to strengthen organizational capacity in order to accelerate the development of facilities for decontamination and interim storage facilities during today's ministerial discussions.

Furthermore, in relation to the nuclear regulations, I asked all relevant ministers to put into action the plan to strengthen organizational capacity to ensure strict and appropriate assessment by the Nuclear Regulation Authority and enhancement of nuclear disaster prevention measures, among other matters.

Today the first meeting of the Headquarters for Healthcare and Medical Strategy Promotion was held in which the R&D system for new medical fields and the basic guidelines for budget requests related to R&D in the medical field were approved. More specifically, the Headquarters will be responsible for integrated coordination and management beginning with budget requests from all ministries under strong political leadership. To this end, I will directly investigate the budget details of each ministry. It was decided that approximately 100 billion yen of medical research funds currently distributed by ministries and independent administrative agencies that are overseen by ministries will be consolidated into the new independent administrative agency, which will be launched sometime in the future. The funds will be centrally managed and distributed flexibly and efficiently across ministries depending on research progress. Following today's decision, the Government is determined to work hard toward the practical application of innovative medical technology. The Government also anticipates that the private sector and universities, which will be conducting the actual research and producing results, will further strengthen their efforts. For more details on this topic, please contact the Office for Healthcare and Medical Strategy.

Finally, I would like to say that the fourth meeting of the Headquarters on Creating Dynamism through Agriculture, Forestry and Fishery Industries and Local Communities was held prior to today's Cabinet meeting, and the Prime Minister issued instructions. I also stated that this matter should be addressed by each ministry and agency without vertical segmentation and that ultimately we will aim to come to a conclusion before the end of this year after having the Industrial Competitiveness Council, Regulatory Reform Council, and National Strategic Special Zone Working Group discuss the matter.

This concludes my opening statements.

Q&As

• The appointment of a new Director-General of the Cabinet Legislation Bureau
• Yasukuni Shrine
• The leakage of contaminated water from the Fukushima Daiichi Nuclear Power Station
• Japan-ROK relations
• The Senkaku Islands

REPORTER: I would like to ask a question regarding the personnel change involving the Director-General of the Cabinet Legislation Bureau. I understand that Mr. Komatsu has been appointed to this role from the Ministry of Foreign Affairs, which I believe is unusual. I am aware that Mr. Komatsu was a member of the advisory council on the collective right to self defense while the first Abe Cabinet was in office. Given this, could you share with us the objectives of this personnel decision?

CHIEF CABINET SECRETARY SUGA: Personnel decisions are made with consideration of personalities and acumen to ensure we place the right person in the right position. Ambassador Komatsu, who will assume the role, previously held the post of the head of the International Legal Affairs Bureau and has also worked for an extended period for the Treaties Bureau, the forerunner to the current International Legal Affairs Bureau of the Ministry of Foreign Affairs. Mr. Komatsu has extensive knowledge and experience in a number of fields such as international law and we came to the conclusion that he is the right person for the position of Director-General of the Cabinet Legislation Bureau.

REPORTER: Am I right to understand that this personnel decision was made as a strategic move as the Government prepares to alter its interpretation of the Constitution in relation to the right to collective self-defense?

CHIEF CABINET SECRETARY SUGA: No, the personnel decision was made for the reasons I just stated. Personnel changes by the Abe Cabinet are conducted with consideration of personalities, acumen and competence to ensure we place the right person in the right position rather than making personnel decisions based on fixed ideas such as custom or seniority.

As for the interpretation of the constitution by governmental bodies, the Cabinet Legislation Bureau provides direct legal assistance to the Cabinet. However, the Bureau is still an agency under the Cabinet and therefore interpretation of the Constitution is the Cabinet's responsibility.

REPORTER: Am I then right to understand that Mr. Komatsu is the right person to facilitate debate over Constitutional interpretation of the right to collective self-defense?

CHIEF CABINET SECRETARY SUGA: The recent personnel decision was made on the grounds that Mr. Komatsu was the right person for the position of Director-General, and this was the right decision for the Government as a whole. He was not chosen for his ability to facilitate debate over Constitutional interpretation. A number of you have asked that question, but given the personnel decisions made by the Abe Cabinet so far, I sincerely hope that you view this personnel decision as one of the personnel decisions that we have made with consideration of personalities, acumen and competence to ensure that we place the right person in the right position.

(Abridged)

REPORTER: During today's ministerial discussions, did the Prime Minister or you make any requests in relation to the visits to Yasukuni Shrine?

CHIEF CABINET SECRETARY SUGA: No, the topic was not discussed at all.

REPORTER: I have a question on the same topic. Do you intend to join the shrine visit on August 15?

CHIEF CABINET SECRETARY SUGA: The Abe Government's stance on the Yasukuni Shine is that we believe that in any country, be it Japan or abroad, we all share a desire to clasp our hands together to pray for the repose of the souls of those who sacrificed their precious lives for their country and express our respects.

Therefore, on behalf of the Abe Cabinet I would like to refrain from commenting on whether I will visit, or whether I should visit, in the capacity of either a Government representative or a private citizen. I am after all a Cabinet member.

CHIEF CABINET SECRETARY SUGA: It has been reported that the Prime Minister and you unofficially communicated to China that you both do not intend to visit the shrine. Could you inform us of the facts?

CHIEF CABINET SECRETARY SUGA: I have no knowledge of this.

(Abridged)

REPORTER: It was revealed that it is estimated that approximately 300 tons of groundwater is being contaminated with radioactive substances each day and that this water is being released into the ocean at the Fukushima Daiichi Nuclear Power Station. Could you share with us if the Government has explained this to other nations? If not, does the Government intend to do so?

CHIEF CABINET SECRETARY SUGA: Firstly, please let me explain the situation concerning the 300 tons of contaminated water. It is estimated that approximately 100 tons of subterranean water is passing near wells on the ocean side in which contaminated water has been detected. We are currently attempting to prevent leakage of groundwater by improving soil condition through the injection of liquid glass.

As for the additional areas, such as the number 2 and 3 plants, I believe that the level of contamination is relatively low as they are further from the areas I just mentioned where contaminated water has been detected. 100 tons of water flows near the wells of each of the number 2 and 3 plants and at the moment we cannot deny the possibility that this water is also contaminated and therefore believe that it requires further investigation. In light of this, the meeting of the Committee on Countermeasures for Contaminated Water Treatment, which will be held today, will thoroughly discuss this matter and develop countermeasures.

We will naturally explain the situation to other countries as soon as we have definite results. We have always done so each time we make major decisions, therefore we will naturally continue to do the same on this occasion.

REPORTER: It appears to me that the roadmap to take the plants out of operation developed by the DPJ Government and the Tokyo Electric Power Company (TEPCO) is losing traction. Therefore, given the virtual collapse of countermeasures against contaminated water by TEPCO, and taking the opportunity of the Government decision to use national funds to rectify this problem, I believe that the Abe Cabinet's revision of this roadmap will make it easier for the public to understand and easier for the public to give it support. Could you share with us your thoughts on this revision?

CHIEF CABINET SECRETARY SUGA: Firstly, in June this year we revised the roadmap to accelerate our initiatives, which include initiatives to address the issue of contaminated water. Therefore, we believe that thoroughly following through on these revisions is most important.

(Abridged)

REPORTER: It will soon be one year since former President Lee Myung-bak of the Republic of Korea (ROK) landed on Takeshima on August 10 last year. Japan and ROK relations remain strained, so could you share with us once again how the Government intends to repair Japan-ROK relations? Also, I believe that a Japan-ROK Foreign Ministers' Meeting was held last month, and now as the next step, do you believe that it is necessary to hold a summit meeting in the near future?

CHIEF CABINET SECRETARY SUGA: Firstly, the basic understanding of ROK relations is that the ROK is indeed our neighbor and is an extremely important nation with which we share the same democratic and social values. In light of this, as a result of administrative coordination, we recently held a foreign ministers' meeting. Through this continued work we are addressing a number of issues, including issues involving North Korea, with the understanding that Japan-US-ROK relations are extremely important.

REPORTER: I have a question concerning the waters surrounding the Senkaku Islands. I understand that today Chinese Government vessels have remained within Japanese territorial waters longer than usual. Do you believe that the situation over the waters surrounding the Senkaku Islands is deteriorating? How do you assess the current situation?

CHIEF CABINET SECRETARY SUGA: The Senkaku Islands are clearly an inherent territory of Japan in light of historical facts and based upon international law. The duration of today's territorial water violation is the longest since the acquisition and retention of the Senkaku Islands by the Japanese Government in September last year. This is extremely regrettable and we can in no way accept this action. Following this incident, the Director-General of the Asian and Oceanian Affairs Bureau of the Ministry of Foreign Affairs summoned the Minister of the Chinese Embassy in Tokyo to visit the Ministry of Foreign Affairs at 9 am today, in keeping with the instructions of the Minister for Foreign Affairs, in order to lodge a strong protest. We are also strongly urging the Chinese Minister to have all Chinese Government vessels withdraw immediately.

The Government will continue to thoroughly collect information and conduct surveillance in cooperation with relevant ministries and agencies.