Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

• The issues related to the situation in Ukraine
• The issues related to the forcible recruitment of　Chinese laborers during World War II
• The issues related to Japan-North Korea relations
• The issues related to the result of the provisional trade statistic

REPORTER: I have a question in relation to the situation in Ukraine. During the meeting of the Cabinet Committee of the House of Representatives earlier today, you mentioned Japan's additional sanctions against Russia. Could you share with us the details of these sanctions and  the timing that the Japanese Government is considering implementing them?

CHIEF CABINET SECRETARY SUGA: Firstly, Russia recognized the independence of the Autonomous Republic of Crimea and a treaty for the annexation of Crimea was signed on March 18. I have consistently said during these press conferences that Japan does not approve the infringement of the unity, sovereignty and territorial integrity of Ukraine. As such, we first of all deplore these actions. At the same time Japan can never overlook an attempt to change the status quo with force in the background. In light of this, the Japanese Government announced yesterday that it has decided to take the following measures vis-a-vis Russia: suspension of consultation for easing visa regulations as well as freeze of launching negotiations on three new international agreement of a new investment agreement, an outer space cooperation agreement and an agreement for prevention of dangerous military activities. If Russia completes the annexation, the Japanese Government will consider further sanctions. We will decide on any additional sanctions while being sure to coordinate with other G7 member countries.

REPORTER: I have a question concerning the G7 countries keeping in step with each other. I understand that the G7 leaders will meet to discuss how to respond to Russia's actions at next week's Nuclear Security Summit. Does the Japanese Government intend to implement the sanctions you just mentioned, either today or tomorrow, prior to the summit?

CHIEF CABINET SECRETARY SUGA: The G7 member countries are currently considering how we would respond to this annexation. Therefore the Japanese Government will respond while coordinating with the countries concerned. Moreover, if the Prime Minister is able to gain Diet approval, he will attend the Nuclear Security Summit and make a variety of responses accordingly.

REPORTER: The E.U. and the U.S. have been critical of Russia’s actions, describing them as an invasion or land grab, for example. What do you think about this way of viewing the matter?

CHIEF CABINET SECRETARY SUGA: For the first time we used the word "deplore." This is an expression of our firm stance that we cannot accept an annexation and can never overlook an attempt to change the status quo with force in the background.

REPORTER: I understand that the basic stance of the Japanese Government is that it will act in step with other G7 countries. I also believe the U.S. and Europe implemented sanctions that include suspending the issuance of visas to high-ranking Russian Government officials and freezing assets. Would Japan therefore consider additionally implementing such sanctions as a means of keeping in step with the G7 countries?

CHIEF CABINET SECRETARY SUGA: We will respond while coordinating with each of the G7 member countries. However, looking at the sanctions that are currently in place, it is clear that each country is determining its own set of sanctions.

(Abridged)　

REPORTER: According to a media report, a Chinese court decided to take up the lawsuit filed by a group of former workers who were allegedly forcibly recruited. It is the first time that such a suit will be taken up in China. Could you share with us the Japanese Government's thoughts and how it will respond?

CHIEF CABINET SECRETARY SUGA: Firstly, in relation to the issue of the forcible recruitment of Chinese laborers, the Government recognizes that it is undeniable that many people found themselves in an unfortunate situation at one time, and believes that even though the situation was unusual even in wartime, it is extremely regrettable that it brought on these people unbearable suffering and sadness. If the media report is true, it could give rise to additional cases in China. This could also raise grave concerns in terms of the impact on the framework of Japan and China’s postwar settlement and economic relations between our two countries. Following the Joint Communique of the Government of Japan and the Government of the People's Republic of China, the Government deems that no issues exist in terms of claims between Japan and China concerning World War II. The Japanese Government will continue to closely monitor the situation with interest. On a related note, item five of the Joint Communique states, "The Government of the People's Republic of China declares that in the interest of the friendship between the Chinese and the Japanese peoples, it renounces its demand for war reparation from Japan." Please take note of the fact that China is the subject of the sentence.

REPORTER: With regard to the Joint Communique, the Chinese group claims that China did not renounce the right to claims by individuals. How do you view this difference in opinion between Japan and China?

CHIEF CABINET SECRETARY SUGA: As I just said, our position is that following the Japan-China Joint Communique, no issues exist in terms of claims between Japan and China concerning World War II, including issues of claims by individuals.
 
REPORTER: You just said that "If the media report is  true." Does that mean that the Japanese Government has not confirmed the recent actions by the Chinese court?

CHIEF CABINET SECRETARY SUGA: Since the filing of this suit on February 26, the Government has been closely monitoring the developments with interest. That being the case, following today’s media report we have been engaged in various forms of communication via diplomatic routes. If we find that what was reported is  true, we will respond thoroughly.

REPORTER: Many Japanese businesses operate in China and they employ many Chinese people. In light of this, what are the Japanese Government's thoughts on the economic impact of this legal case?

CHIEF CABINET SECRETARY SUGA: Rather than being  a question of the potential economic impact, first and foremost, the Japanese Government's stance is that no such issues exist. Therefore, various levels of Japanese diplomatic authorities will  assert this to China.

(Abridged)　

REPORTER: I would like to ask a question in relation to Japan-North Korea relations. Red Cross talks between Japan and North Korea are scheduled to commence today in Shenyang, China. Additional talks involving director-level officials from the foreign ministries of both countries are also scheduled to coincide with the Red Cross talks. Could you share with us what the Japanese Government expects from these talks?

CHIEF CABINET SECRETARY SUGA: Firstly, the decision to hold the Red Cross talks that are commencing today was made from a humanitarian perspective. The Red Cross societies of Japan and North Korea are holding these talks as a follow-up to the talks on March 3. I anticipate that the issue of Japanese remains left in North Korea since the end of the war and the issue of Japanese families seeking to visit the graves of their relatives will first of all see some progress. Furthermore, Government officials from both Japan and North Korea, including those from our two foreign ministries, are expected to attend the talks. We are currently trying to arrange an opportunity to have an unofficial exchange of opinions between the two countries. The Japanese Government will make every possible effort to encourage North Korea to respond positively and to resolve the outstanding issues between our countries.

REPORTER: It has been some time since the last official talks between the two countries. If possible, is the Japanese Government hoping to elevate these unofficial talks to an official level? For instance, would the Government consider Director-General level meetings to facilitate official talks?

CHIEF CABINET SECRETARY SUGA: The Japanese Government is making every possible effort to encourage North Korea to respond positively and to resolve the outstanding issues between our two countries.

(Abridged)　

REPORTER: The provisional trade statistics for February were released and Japan recorded a trade deficit of 800.3 billion yen. Could you share your thoughts with us?

CHIEF CABINET SECRETARY SUGA: Firstly, as you just said, the February 2014 trade statistics show that the trade balance, calculated by deducting imports from exports, was negative 800.3 billion yen. This means that Japan has recorded trade deficits for 20 months in a row. However, Chinese New Year takes place in February and therefore we must bear in mind that imports from China and other countries tend to decrease during this period. The recent provisional trade statistics show that exports and imports increased by 9.8% and 9.0% respectively year on year. However, overall this has resulted in a deficit in the trade balance. Imports and exports are affected by a number of factors, including the economic situation both at home and abroad, foreign exchange rates and crude oil price fluctuations. We will keep a close eye on developments.

REPORTER: This was actually the largest deficit we have seen in February since 1979, the last year for which comparable statistics are available. I assume that this has something to do with the import of fuel following the suspension of nuclear power generation and the depreciation of the yen. What are your thoughts on this?

CHIEF CABINET SECRETARY SUGA: Firstly, the Export of Quantum Index shows that there was a 5.4% increase year on year, which was the first increase in two months. As I just said, exports are influenced by factors such as foreign exchange rates and the economic conditions faced by our trade partners. We will therefore keep a close eye on developments.

REPORTER: I would like to ask a question on a related topic. As I understand it, the depreciation of the yen is not one of the actual goals of Abenomics. Nevertheless, I believe that there was some degree of hope that the resulting depreciation of the yen would consequently drive the Japanese economy. While export figures did see an increase for the first time in two months, in terms of volume, exports have not actually grown as much as you would expect. The relocation of manufacturing bases overseas is considered to be one of a number of factors behind this. Additionally, subtracting Japan’s imports from its exports has resulted in an even larger trade deficit. Therefore, some question whether the depreciation of the yen against other currencies is truly a positive for the Japanese economy. What are your thoughts on this?

CHIEF CABINET SECRETARY SUGA: It has only been one year and three months since the inauguration of the Abe Government. During that period, the yen has depreciated significantly, or rather it has approached the levels prior to the global financial crisis. In light of this, many businesses are in fact experiencing significant profit increases, as seen from their financial statements, for example. This was also proven by the recent rise in base salaries. I am certain that the effects of the three arrows of economic policy, or Abenomics, are greatly contributing to the economy. We also believe that the trade balance will improve led by an increase in exports.

(Abridged)