Press Conference by the Minister for Financial Services

(Excerpt)

August 5 , 2003

Regarding matters related to the Financial Services Agency (FSA), two cabinet orders concerning the Insurance Business Law were endosed by the Cabinet. Further, my visit to the U.S. was approved.

Also, based on the ''Report of the Second Sub-Committee regarding the Use of Public Funds for Financial Institutions'' compiled on July 28, we established a project team so as to further examine this matter administratively and comprehensively within the FSA.

The project team consists of deputy director-generals and directors of the Planning and Coordination Bureau, the Inspection Bureau and the Supervisory Bureau. The first meeting will be held during this week, and such meetings will be held in the future, as needed.

Q.

With whom do you intend to have meetings during your visit to the United States? What will be the subject of discussions?

A.

Basically, I will have discussions with one of my counterparts, Mr. Nicholas Gregory Mankiw, Chairman of the Council of Economic Advisers (CEA). And in the context of meeting with economic ministers, I also plan to meet Treasury Secretary Mr. John Snow, as well as non-ministers, including Federal Reserve Chairman Mr. Alan Greenspan, Assistant to the President for Economic Affairs Mr. Stephen Freedman, and Chairman of Securities and Exchange Commission (SEC) Mr. William H. Donaldson.

Q.

In the upcoming meeting, what kind of matters do you want to convey to the U.S. as a Japan's message? Also, what is likely to be the focus of discussions?

A.

As we acknowledge that the effects of Prime Minister Junichiro Koizumi's structural reform have finally started to become apparent two years and three months after its launch, I intend to inform them of the current Japanese situation frankly.

At the same time, I would like to exchange opinions frankly with those in charge of policy administration, about their views on the U.S. economy from the latter half of 2003 through 2004, as the trends of the Japanese economy--or rather, Japan, Asia and the entire world--are heavily dependent on the trends of the U.S. economy.

Q.

Please give us a recap of the project team's role, its directions and the discussions to be expected.

A.

In the Second Sub-Committee's report, various opinions on the system of public funds are described and we need to examine important points of them. As the report is a compilation of experts' opinions, we need to make policy decisions on the way to reflect them in policies, and give consideration in concrete terms, including the consistency as a whole. We would like to determine what to do, while clarifying issues to be noted.