Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

• The visit of the island of Etorofu by a senior Russian government official
• The issue of the aerial bombing in Syria against the ISIL
• The raising of the consumption tax

REPORTER: Mr. Sergei Ivanov, Chief of Staff of the Presidential Executive Office of Russia, has visited the island of Etorofu in the Northern Territories on the pretext of viewing the new airport that has been built there. This is the first visit by a senior Russian official to the Northern Territories in two years. Can I ask how the Government of Japan will respond?

CHIEF CABINET SECRETARY SUGA: As I stated recently the Government is aware of the visit to Etorofu by the Chief of Staff of the Presidential Executive Office of Russia. A visit to the island by a senior Russian government official contradicts Japan's basic position on the Northern Territories and neglects the feelings of the Japanese people. It is therefore extremely regrettable. The Government had received prior information about the possibility of a visit and on September 18, Mr. Hajime Hayashi, Director-General of the European Affairs Bureau of the Ministry of Foreign Affairs expressed concern to the Ambassador of the Russian Federation to Japan, demanding that the visit be cancelled. In addition, a Deputy Minister at the Japanese Embassy in Moscow also issued the same request to the Director of the Third Asian Department of the Russian Ministry of Foreign Affairs. The Government will of course be lodging a protest to Russia through appropriate channels on this occasion.

REPORTER: I have a related question. A few days ago Prime Minister Abe held telephone dialogue with President Putin in which the two leaders confirmed that Japan-Russia dialogue would continue. Will this visit have any impact on such dialogue?

CHIEF CABINET SECRETARY SUGA: I do not think that will be the case. Both leaders confirmed that dialogue would continue.

REPORTER: On a related note, although the two sides agreed to continue with dialogue, how do you view the fact that the Russian side is taking actions that Japan has protested?

CHIEF CABINET SECRETARY SUGA: As I just stated the recent visit neglects the feelings of the people of Japan and we will continue to lodge a protest on this matter.

REPORTER: I have a question concerning the aerial bombing in Syria against the Islamic State of Iraq and the Levant (ISIL). Following on from a statement made by Minister for Foreign Affairs Kishida, this morning the Prime Minister also stated in a press conference with domestic journalists that Japan supports the fight against ISIL and expressed understanding for the aerial bombing in Syria. There are some who suggest that the recent bombing is in contravention of international law as it was not in response to a request by Syria. What are your thoughts on this point?

CHIEF CABINET SECRETARY SUGA: Firstly, these attacks by armed forces of ISIL have resulted in cities and towns not only in Iraq but also in Syria being brought under the total control of ISIL. The Government of Japan is deeply concerned that the attacks have resulted in large numbers of casualties and strongly condemns such armed attacks. In addition, Japan has supported the fight against ISIL by the international community, including the United States. The Government of Japan understands that the current aerial bombing is a necessary measure being conducted to prevent the further deterioration of the situation caused by ISIL attacks. In order to counter the serious threat posed by ISIL, Japan plans to cooperate with other countries, including the provision of assistance for refugees and evacuees, and humanitarian assistance to surrounding countries. It is with such an aim in mind that Japan has recently implemented assistance totaling US$25.5 million. With regard to the aerial bombing, the Government supports the fight against ISIL by the international community, including the United States, and understands that the bombing of ISIL targets in Syrian territory by the United States is a necessary measure to prevent the further deterioration of the situation caused by ISIL attacks.

REPORTER: I have a related question. You have just mentioned humanitarian support, but I think that with the bombing of Syria the situation has now entered a new stage. Is the Government considering any kind of additional responses to the situation?

CHIEF CABINET SECRETARY SUGA: No, Japan will continue to provide the kind of assistance I have just mentioned.

REPORTER: I have a further question. ISIL has stated that it will engage in attacks on the citizens of the three countries involved in the bombing and there is a growing sense of crisis about terrorism around the world. What sort of response measures does Japan intend to take?

CHIEF CABINET SECRETARY SUGA: The Government of Japan has always joined together with the international community in firmly condemning all forms of terrorism. The Government supports the fight against terrorism, including the fight against ISIL by the international community, including the United States. In addition, in order to counter the serious threat posed by ISIL, Japan plans to work closely with other countries in providing assistance and cooperation to the greatest extent possible, including the provision of assistance for refugees and evacuees, and humanitarian assistance to surrounding countries.

REPORTER: A decision was approved by the Cabinet concerning the right of collective self-defense, so if it becomes possible to exercise the right of collective self-defense in the future would the Government embark on new measures to support the United States?

CHIEF CABINET SECRETARY SUGA: This matter is completely unrelated to the right of collective self-defense. The assistance that Japan is providing is limited to humanitarian assistance and that will not change.

REPORTER: With regard to the raising of the consumption tax, in a press conference with domestic journalists the Prime Minister stated that the Government would ask for an evaluation by experts without waiting for the announcement of the July to September GDP figures that are due out in mid-November. When will such a meeting of experts be convened to examine the economy and who are its members expected to be?

CHIEF CABINET SECRETARY SUGA: What the Prime Minister was saying was that although the quarterly estimate for GDP in the period from July to September will be announced in mid-November, the Government seeks to speed up the process a little, in the same way as happened last year. We will do so by establishing a forum for seeking focused opinions from experts and scholars on macroeconomic analysis. The aim is for such experts to discuss with great care and attention the degree to which the economy is recovering and the outlook for the future. It is on the basis of these discussions that the Prime Minister will make a decision by the end of the year on raising consumption tax.

REPORTER: I have a related question. In the run-up to the consumption tax being hiked to eight percent the Government sought opinions from 60 experts. Is it expected that the discussions this time will be on a similar scale?

CHIEF CABINET SECRETARY SUGA: That is something that we will decide at a later date. In any case, the Prime Minister will make a decision after having listened carefully to the opinions of such experts and scholars.

REPORTER: Yesterday Chief Representative of New Komeito Yamaguchi stated that if the consumption tax is not increased it will reflect badly on Abenomics. Persons from parties involved in the three-party agreement, including Secretary-General Tanigaki of the Liberal Democratic Party (LDP) are stating that consumption tax should be raised. Can I ask for your thoughts on this matter?

CHIEF CABINET SECRETARY SUGA: As I have stated previously with regard to the increase of the consumption tax to 10 percent, the basic stance of the Government is to make an appropriate decision by the end of the year that takes the economic situation into comprehensive consideration. The Government will take into account both the risks associated with raising the tax and the risks that would accompany the raise being postponed, listening earnestly to the opinions of the experts and scholars I have just mentioned, before making the best decision. I have always said that the Abe administration is one that seeks to achieve the double feat of vitalizing the Japanese economy and achieving fiscal soundness, as well as breaking out of deflation and rebuilding public finances. With regard to the current economic situation, it is a fact that there was an economic reaction to the increase in the consumption in April and the economy has been further impacted by the poor weather since July. Whatever the case, I believe that it is also a fact that against the backdrop of this situation the Japanese economy is continuing on a moderate recovery track. Abenomics is bringing forth steady results in terms of share prices and the ratio of jobs to applicants. We must of course look very closely and carefully at whether an increase in consumption tax could be coordinated effectively with the vitalization of the Japanese economy, including breaking out of deflation. Therefore there is absolutely no change to the Government’s stance of making a decision after an extremely careful and thorough process of deliberation.

REPORTER: You have just referred to a “double feat” and yesterday in a speech you stated that the priority is to break out of deflation. If it is determined that Japan has yet to break out of deflation, is there a possibility that the option of not raising consumption tax will be chosen?

CHIEF CABINET SECRETARY SUGA: As I have just explained the Government will listen carefully to expert opinions about the risks associated with raising the consumption tax and also the risks that would accompany the raise being postponed. We will also take into account the status of the quarterly estimate for the July to September period and deliberate carefully before making a decision by the end of the year. The economy is a fluid thing and subject to various movements and influences, therefore we will make a decision after comprehensive consideration. That is the situation.

REPORTER: I have a related question. As you have just explained, a final decision will be made on the basis of comprehensive consideration that takes into account various outlooks. However, I believe that the weight given to the various factors that comprise the decision will be different. As a specialist in risk management yourself, is there a possibility that avoidance of the risks posed by not raising consumption tax would be given greater weight when making a decision on raising consumption tax?

CHIEF CABINET SECRETARY SUGA: Whatever the case, the Government must consider responses to both the risks associated with raising the consumption tax and also the risks that would accompany the raise being postponed. Therefore the Government will listen closely and unerringly to the opinions of experts, after which the Prime Minister will deliberate carefully before making the best decision by the end of the year. There is absolutely no change to this stance.