Press Conference by Yoshimi Watanabe, Minister for Financial Services

(Excerpt)

September 14, 2007

[Minister's Statement]

Good Morning. Today's cabinet meeting was held as an informal gathering of ministers as Prime Minister Abe was absent because of illness.

I feel sorry that the Prime Minister has expressed his intention to resign. It is quite regrettable particularly because we were tackling difficult problems together in order to achieve our common goal. Naturally, we should continue to implement policies in a sincere manner under a new prime minister based on our reflection upon the results of the House of Councillors election. I intend to fully perform my duties until the end so as to ensure a steady transition to the next government. This is all I have to say.

[Questions and Answers]

Q.

The schedule of the presidential election (of the ruling Liberal Democratic Party) has been decided. Prime Minister Abe has pursued reformist policies, and what kind of person do you think would be desirable as the next prime minister?

A.

The most important thing is to continue and develop reform further. I hope that the new prime minister will be a person willing to go in this direction.

Q.

There are concerns about a political vacuum. Could you tell me whether or not you expect the financial administration to be affected?

A.

As we must avoid a political vacuum, I hope that the next cabinet will promptly prepare itself to ensure steady administration. For my part, I will appropriately tackle the pending issues while I am in office.

Q.

After the resignation was announced the day before yesterday, you said that a person with ''reformist genes'' would be desirable as a new prime minister. Is there any such person among the three men now running (as LDP presidential candidates)?

A.

As the full line-up of candidates will not become clear until tomorrow, I would like to refrain from commenting on that at this time.

Q.

Among young lawmakers, there has been a move to prod Mr. Koizumi into standing for the election. In relation to the reformist genes you have mentioned, how do you think the situation will develop from now on?

A.

I cannot make my judgment until I look at the full lineup of candidates tomorrow. I will make my judgment after looking at who expresses what kind of views.

Q.

Aren't you thinking of prodding somebody into standing?

A.

As I have been serving as a member of the Abe cabinet, I do not think I am in a position to recommend any specific person. Anyway, I would like to look at who will submit candidacy tomorrow.

Q.

I think administrative reforms, including the civil servant system reform, should be handled as a medium- or long-term issue. How do you think these will be affected by the departure of the Abe cabinet?

A.

The civil servant system reform has already started. The relevant legislation was revised in the previous Diet session for the first time in 60 years. We are now tackling the ongoing process. As a consultation group on the whole reform package is conducting intensive discussions with an eye on the next ordinary Diet session, I think the trend of reform will never fade away.

Q.

Regarding the LDP presidential election, is there any possibility that you will run?

A.

I think there is no such possibility.

Q.

Are you completely sure?

A.

I do not know. Anyway, the requirement for securing 20 recommenders constitutes a substantial hurdle. Three or four years ago, I drew up an election manifesto, which was eventually abandoned, and I felt at that time that the requirement for 20 recommenders was a high hurdle.

Q.

Active consultations within and between party factions are being held, and what do you think of this situation?

A.

It is quite an anachronism like the situation in a recent movie about the good old days. This is no longer an era in which LDP presidents are picked based on factional consultations.

Q.

A lot of cabinet ministers have come and gone in a short period of time, prompting opposition parties to allege that this is a ''cabinet of electoral administration'' focusing on the next general election. What do you think of this?

A.

Although opposition parties may describe this cabinet as a cabinet of electoral administration, there are two years left until the full term of the current House of Representatives expires. This means that the important issue is what should be done over the remaining two years. In the current political situation of a divided parliament, in which the House of Councillors, unlike the House of Representatives, is majority-controlled by opposition parties, I think it will be necessary to seek policy collaboration and make constructive concessions based on our reflection upon the results of the previous House of Councillors election. Therefore, I think the next cabinet will need to steadily implement reforms over the remaining two years while making bold concessions where necessary.

(End)