Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

• The issues related to the comments of Special Advisor to the Cabinet Honda reported in the Wall Street Journal
• The issue related to the Basic Energy Plan
• The issues related to the January trade statistics released by the Ministry of Finance
• The issue related to the National Security Summit

REPORTER: I would like to ask a question in regard to Special Advisor to the Cabinet Honda. It is being reported that in an interview with the U.S. newspaper, The Wall Street Journal, Special Advisor Honda stated that in addition to raising wages and improving livelihoods, Japan needs a strong economy so that it can build a more powerful military and stand up to China. Could you please comment on this, and give us the facts surrounding the article?  

CHIEF CABINET SECRETARY SUGA: Special Advisor Honda phoned the Office of the Chief Cabinet Secretary and talked with my Executive Secretary. Special Advisor Honda briefed as follows: "I was shocked when I read the article. I was indeed interviewed, but the article misreported the meaning of my remarks and does not communicate at all what I really meant. Furthermore, I never said anything to suggest that there are militaristic intentions behind Abenomics. In regard to the visit to Yasukuni Shrine as well, I told the interviewer to ask the person in charge." "The interviewer simply wrote an article that fit his desired narrative. It is very upsetting that he wrote the article in this way, and made it seem like this is what I stated."

REPORTER: With regard to the visit to Yasukuni Shrine which you also mentioned moments ago, the same article says that Mr. Honda touched on the kamikaze pilots during World War II. According to the article, Mr. Honda said, "Japan's peace and prosperity has depended on their sacrifices. That's why Mr. Abe had to go to Yasukuni." Does what you just stated apply to this comment as well?   

CHIEF CABINET SECRETARY SUGA: I would say it applies to everything reported in the article. This is what my Executive Secretary was told.

REPORTER: Did Mr. Honda specifically mention any subsequent actions on this matter? For example, did he say he was requesting The Wall Street Journal to make any corrections?  

CHIEF CABINET SECRETARY SUGA: I have no knowledge about that. In any case, Mr. Honda has briefed the Office of the Chief Cabinet Secretary on the matter. I imagine that this will now be dealt with between Mr. Honda and the reporter.

REPORTER: Regarding a related point, I gather that usually in articles of this nature, the text in quotation marks represents statements that are quoted verbatim, and the other sections may include the interpretations of the reporter. Is Mr. Honda saying that he did not even state the comments inside the quotation marks?

CHIEF CABINET SECRETARY SUGA: Quoting what Mr. Honda told us, he said, "I was shocked when I read the article." The rest is exactly as I described earlier.

REPORTER: A related question. When he says he was shocked, was he shocked that things he did not say were quoted in quotation marks? Or leaving aside the issue of the direct quotes, was Mr. Honda shocked because the reporter's interpretation throughout the article differed from what he meant? There is a significant difference between these two scenarios. Can you tell us which of the two it was? 

CHIEF CABINET SECRETARY SUGA: As I stated a short while ago, Special Advisor Honda stated, "I was indeed interviewed, but the article misreported the  meaning of my remarks and does not communicate at all what I really meant. Furthermore, I never said anything to suggest that there are militaristic intentions behind Abenomics."

REPORTER: In which case, you are saying that the text in quotation marks is also not correct?

CHIEF CABINET SECRETARY SUGA: That is what I understand.

REPORTER: Then will Special Advisor Honda be requesting that The Wall Street Journal issue a correction on this matter?

CHIEF CABINET SECRETARY SUGA: Mr. Honda is  the one interviewed and  the aforementioned is what he is saying. I therefore deem that this is a matter between Mr. Honda and the reporter who interviewed him.

REPORTER: You said that Mr. Honda denies making these statements. What do you think about the fact that the interview was reported in a way that leads to misunderstanding? 

CHIEF CABINET SECRETARY SUGA: Firstly, Special Advisor Honda said, "The interviewer simply wrote an article that fit his desired narrative. It is very upsetting that he wrote the article in this way, and made it seem like this is what I stated." This is what he reported to us. Mr. Honda is the one interviewed. Therefore, I hope Special Advisor Honda thoroughly deals with this matter with the reporter in question.

REPORTER: The bottom line, as I understand it, is that this is not the opinion of Special Advisor Honda. In other words what the reporter wrote differs from what Mr. Honda meant. . I would think that the Government does not want this article to end up giving a misleading impression of Japan or the Abe administration. As such, I imagine that you are considering taking action, including requesting that The Wall Street Journal issue a correction. How does the Government intend to deal with this matter?

CHIEF CABINET SECRETARY SUGA: So as I said, I view this as a matter for Mr. Honda to deal with, because something he did not say was written in an article. Special Advisor Honda said clearly, "I never said anything to suggest that there are militaristic intentions behind Abenomics." Therefore, I believe he will be the one to get this matter worked out.

REPORTER: While yes, he is just a Special Advisor, Mr. Honda is seen overseas as a key person behind Abenomics. In my mind, it is quite difficult to convey to overseas observers that this was the Special Advisor's personal opinion or that his view differs from the view of the Government. I perceive that unless the Government makes it clearer which parts are erroneous and in what way they are erroneous, it is highly likely that those outside Japan will attribute these statements to the Japanese Government.

CHIEF CABINET SECRETARY SUGA: So as I said, as this is what Special Advisor Honda stated, I would think that this matter would first be worked out between Special Advisor Honda and the reporter who interviewed him.

REPORTER: Perhaps militaristic intentions of standing up to China are indeed not behind Abenomics. However, is it not true that one of the intentions behind Abenomics is that Japan must maintain its position as an economic power, otherwise it cannot stand up to China?

CHIEF CABINET SECRETARY SUGA: Abenomics is about revitalizing the Japanese economy by breaking free from deflation. If you recall, until our administration came into office, people were not able to find jobs even if they graduated from high school or university. There was a problem of deflation caused by yen appreciation. The three arrows of Abenomics are indeed the policies to break free from such deflation. For example, although the yen was close to falling below the 75-yen mark to the U.S. dollar, it is now nearing the level before the global financial crisis. Additionally, while the Nikkei Stock Average was about 8,000, this is beginning to recover. In this sense, as I have said before, the profit from public pension insurance premiums is now close to reaching 20 trillion yen. Indeed, we have been moving forward along the path of breaking free from deflation and revitalizing the economy. 

REPORTER: I of course understand that Abenomics was a very effective policy domestically. However, I believe it also has international implications as well, particularly in terms of diplomatic affairs. At the risk of repeating myself, the Prime Minister's comments also often suggest that Japan must reestablish itself as a major economic power, if it is to maintain its position in the world. As such, it seems to me that this is not dissimilar to what Mr. Honda said. What are your thoughts?

CHIEF CABINET SECRETARY SUGA: I do not at all believe that is true. Mr. Honda stated that he never said anything to suggest that there are militaristic intentions behind Abenomics. I assume that your question presupposes that he did make such comments. However, Mr. Honda stated that he never said anything to even suggest those things. Therefore, I think that we should trust exactly what Mr. Honda is saying. The matter is left to Mr. Honda and the journalist.

REPORTER: I would like to change the topic and ask a question on the Basic Energy Plan. There is a media report circulating that says the Government intends to position nuclear power as an important base-load power source in the Plan. Could you inform us of how the Government's discussions are currently progressing?

CHIEF CABINET SECRETARY SUGA: We are indeed discussing the matter. However, I have not received any information to suggest that the reported issue is decided.

REPORTER: I have a question about the schedule for the finalization of the Government draft. It seems the Government is making arrangements and aiming to finalize the draft sometime early next week, after which the draft will be passed on to the ruling parties. Is my understanding correct?

CHIEF CABINET SECRETARY SUGA: A number of things have been reported on this matter, but it is an extremely important subject that is directly related to economic activities. Therefore, we will proceed carefully without setting a definitive deadline. Obviously the sooner the Government finalizes its draft, the sooner we can proceed with discussions with the ruling parties. Therefore, although the media has reported various things, including a deadline at the end of February, there currently is no specific deadline.

REPORTER: Does the Government intend to hold a ministerial council or some other meeting to finalize the Government draft before passing it on to the ruling parties?

CHIEF CABINET SECRETARY SUGA: We will of course work in coordination with the ruling parties. As such we will proceed carefully.

REPORTER: Returning to the previous topic, Special Advisor Honda's  comments forms part of the basis of the Japanese Government's policies…

CHIEF CABINET SECRETARY SUGA: Pardon?

REPORTER: Mr. Honda's views form part of the basis for the policies of the Japanese Government and Mr. Honda advises Prime Minister Abe. As such, it is only natural that some people might conclude that Mr. Honda and Prime Minister Abe hold the same views. I fully understand that this is primarily a matter between Mr. Honda and The Wall Street Journal. However, I think that the Government has the responsibility to explain the objectives of Abenomics. I believe  the Government must also explain how Mr. Honda's comments were misreported and what exactly he said in the interview. What are your thoughts? Is there any chance that you  can do this before this afternoon's press conference?

CHIEF CABINET SECRETARY SUGA: Firstly, the Government has clearly explained the content of Abenomics and there are absolutely no militaristic intentions behind it. As I stated earlier, the ultimate aim of Abenomics is to break free from deflation, revitalize the Japanese economy, and achieve a sustainable economy that is driven by the private sector. This is the Government's goal. On no occasion did we mention militaristic intentions or becoming a major power. Our focus is entirely on economic revitalization. Furthermore, Special Advisor Honda says he never said anything to suggest that there are militaristic intentions behind Abenomics. Therefore, it appears to me that it is best that Special Advisor Honda first asks the journalist to issue a correction or to take some other form of corrective action. If Mr. Honda said so, the Government would have something to say, but Mr. Honda himself says he never said anything to suggest that there are militaristic intentions behind Abenomics. Therefore, in my opinion, Mr. Honda should first deal with this issue himself.

REPORTER: I would like to ask a question on the same topic. I imagine the article is having an extremely large impact on overseas perceptions of the Japanese Government and its view. So am I right to understand that if I were to speak with Mr. Honda, Mr. Honda would be able to provide a thorough explanation?

CHIEF CABINET SECRETARY SUGA: I do not know how Special Advisor Honda would respond to that. However, Special Advisor Honda is an open person and I expect that he would naturally take responsibility for his comments.

(Abridged)

REPORTER: I would like to change the topic. According to the January trade statistics released by the Ministry of Finance, the trade balance recorded a deficit of 2.79 trillion yen. Could you share your thoughts with us?

CHIEF CABINET SECRETARY SUGA: The year's lowest exports are usually seen in January due to a number of factors including the New Year holidays and Chinese New Year. Furthermore, partially due to last-minute demand before the increase in consumption tax, domestic consumption within Japan was strong and this led to increased imports, particularly fuel. I think these factors had an impact. As for future developments, overall, foreign economies are gaining underlying strength. Therefore, we can expect exports to gradually recover as the yen continues to depreciate. We will maintain a close eye on developments.

REPORTER: January's deficit was the largest ever, marking three years in a row where this was the case. Could you share with us how you view this and how the Government intends to respond?

CHIEF CABINET SECRETARY SUGA: As I just said, January is always the month in which Japan records its lowest exports. Therefore I would say it simply comes down to the time of year.

REPORTER: Could you tell us how discussions on the attendance of the Prime Minister at the Nuclear Security Summit are proceeding?

CHIEF CABINET SECRETARY SUGA: Firstly, the Government would very much like to pass the draft FY2014 budget during Diet deliberations before the end of the fiscal year. Our aim is to break free from deflation and revitalize the Japanese economy, while also finding a way to mitigate any negative impact of the approaching April 1 consumption tax increase. In this sense, we are currently working very hard to pass the draft before the end of the fiscal year. As for your question on the Prime Minister's attendance at the Nuclear Security Summit, we must first obtain approval from the Diet. We have not yet decided anything whether the Prime Minister will attend or not.

REPORTER: So the Government will consider the Prime Minister's attendance positively, if the Diet schedule permits?

CHIEF CABINET SECRETARY SUGA: As Japan is the only country to have ever suffered from atomic bombings, we are indeed hoping that the Prime Minister will be able to attend.