Press Conference by the Deputy Chief Cabinet Secretary (Excerpt)

Q&As

• The Tankan survey of the BoJ
• The North Korea’s report on the abduction issue
• The confirmation of a case of the Ebola virus disease in U.S.

REPORTER: According to the Tankan survey (Short-term Economic Survey of Enterprises in Japan) of the Bank of Japan (BoJ) that was released today, the diffusion index (DI) for large enterprises’ business conditions for manufacturing improved for the first time in two quarters. Can you please comment on this?

DEPUTY CHIEF CABINET SECRETARY KATO: As you just noted, the BoJ’s Tankan survey released today showed that large manufacturers’ current business conditions improved for the first time in two quarters, as export-related businesses improved because of the yen’s depreciation, among other factors, and continues to remain in positive territory at a high level. On the other hand, compounded by the effects of irregular weather patterns in July and August, among other effects, the business conditions in all industries of small enterprises and large enterprises decreased due to reasons such as dampened consumption caused by the consumption tax increase. The Tankan survey forecasts that large manufacturers’ business conditions will remain at the same level. Looking at the overall results, we can see that the consumption fall after the last-minute rise in demand before the consumption tax hike is easing. We perceive that the economy reflects the assessment in the Monthly Economic Report that the Japanese economy is on a moderate recovery. At any event, we will continue to closely monitor the economic and corporate trends.

REPORTER: I have a related question. As you stated now, I believe the results are showing that Japan is headed towards pulling itself out of the slower rate of consumption that has followed the consumption tax increase. How do you think this will affect the Prime Minister’s decision in December on whether or not to go ahead with the consumption tax increase?

DEPUTY CHIEF CABINET SECRETARY KATO: As the Prime Minister responded at the Diet and elsewhere yesterday, in the quarter ending in December, the Prime Minister will make a comprehensive decision in view of various indicators, in particular, the July-September quarterly GDP estimates.

REPORTER: My question concerns North Korea’s report on the abduction issue. While I am aware that very little time has passed, can you please tell us the current status regarding the outlook for dispatching Japanese authorities to North Korea, or by when you deem that a decision should be made including the decision on whether or not to dispatch officials? 

DEPUTY CHIEF CABINET SECRETARY KATO: The Government continues to give foremost priority to the abduction issue, and strongly expects North Korea to conduct comprehensive and full-scale investigations on all Japanese nationals, including victims of abduction, and report the results promptly. Bearing in mind North Korea’s latest explanation, Japan will continue to do its utmost to find out the current status and results of the investigations. The Government as a whole will quickly review how we shall move forward.

REPORTER: In connection with this, this afternoon, I understand that the Government will be holding a briefing for the members of the Association of the Families of Victims Kidnapped by North Korea. As you just stated, I imagine that the Government will now be making its final decision. Where do the wishes of the families fit in with your final decision-making about whether or not to dispatch officials? Will they be one of the important elements that will be taken into consideration? 

DEPUTY CHIEF CABINET SECRETARY KATO: First of all, with regard to this briefing for the members of the Association of the Families of Victims Kidnapped by North Korea, from 1 pm today at the special conference room on the third floor of the main building of the Cabinet Office, a briefing will be held regarding the results of the latest Japan-North Korea meeting between diplomatic authorities, with the attendance of the members of the Association and others. During this briefing, Minister in charge of the Abduction Issue Yamatani and Director-General Ihara of the Asian and Oceanian Affairs Bureau of the Ministry of Foreign Affairs will be explaining the results of the meeting to the family members. The Government will of course need to take into account various factors in determining the course of action. We will of course be making a decision in light of the views of the family members. Ultimately, we will decide on the course of action after confirming the actual situation, with the Government as a whole, including relevant ministers, maintaining close communication.

REPORTER: Yesterday, the Centers for Disease Control and Prevention (CDC) of the United States announced that a case of the Ebola virus disease (EVD) was confirmed in the United States. This is believed to be the first EVD case confirmed outside of the African continent. Can you please give us your comments?

DEPUTY CHIEF CABINET SECRETARY KATO: We are aware that the U.S. CDC made the announcement you referred to yesterday, September 30, local time. As for Japan, we will continue to confirm with relevant ministries and agencies regarding the arrangements in place for preparations and liaising, and share response measures as needed with the Cabinet Secretariat’s situation room at the Prime Minister’s Office playing a central role.

(Abridged)