Press Conference by Kaoru Yosano, Minister of State for Economic and Fiscal Policy and Financial Services

(Excerpt)

September 15, 2006

Q.

Let me ask you about your views on so-called financial sanctions against North Korea. Considering the unlawful acts committed by North Korea and the level of threat it poses to the international community, do you think financial sanctions should immediately be imposed if the requirements currently being prepared by the Japanese government are met, or do you think the Japanese government should wait for further actions taken by North Korea before looking into actually imposing financial sanctions?

A.

Japan is having a wide range of difficult problems in its relationship with North Korea, namely, the abduction of Japanese citizens, the launch of missiles and the development of nuclear weapons. All of these problems have to be dealt with by the international community as a whole. The abduction issue may appear to be a problem confined to Japan, but I am convinced the international community will support us in this regard.

It is becoming difficult to hold six-party talks, and considering that there are some press reports in South Korea about the possibility of North Korea launching another missile and press reports in Washington regarding suspicions about North Korea conducting a nuclear test in the near future, if it is necessary for the entire international community to take some kind of action, Japan will of course need to participate in such international action by resorting to measures it can take as a member of the international community.

However, this is a major diplomatic issue that cannot be determined solely by the Financial Services Agency (FSA). The FSA must prepare itself so that in the event that the Japanese government as a whole needs to take certain action, it can abide by government-wide policies with respect to areas relating to financial services under the jurisdiction of the FSA.

Q.

What are your thoughts on nighttime stock trading, which commences today?

A.

Nighttime trading of stocks will undoubtedly be convenient for investors. Especially for individuals engaged in work during the day who want to carry out investment activities at night, I can imagine that it would be extremely convenient for them to be liberated from the existing time constraints. On the other hand, the market and the trading volume in nighttime trading is extremely small compared to the likes of Tokyo Stock Exchange (TSE) and Osaka Securities Exchange (OSE), so it is necessary to carefully monitor whether prices are formed in a fair manner at all times. Due to the small market size, acts in violation of the Securities and Exchange Law are more likely to occur, such as insider trading and market manipulation. Market operators and the FSA must pay considerable attention to this.

Considering that publicly-traded companies used to make announcements after the close of the TSE, there are some concerns that companies might probably have to make announcements in an extremely short period of time if nighttime trading commences shortly after the close of the TSE.

(End)