Provisional translation

Press Conference by Shoichi Nakagawa, Minister of Finance and Minister for Financial Services

(Excerpt)

September 26, 2008

[Opening Remarks by Minister Nakagawa]

I will report on today’s cabinet meeting. As you know, Prime Minister Aso is now in New York, so Chief Cabinet Secretary Kawamura, who is acting prime minister, took charge of the proceedings of the meeting. Regarding matters to be introduced in the Diet, an annual report compiled by the Fair Trade Commission was submitted. Regarding personnel affairs, the appointment of Kyoko Nakayama, a member of the House of Councillors, as special advisor to the Prime Minister, and two other appointments were formalized at the cabinet meeting.

In addition, it was reported that the consumer price index in August - I think that the Minister of Internal Affairs and Communications will explain this matter in detail - rose 2.1% from a year before, a slowdown of 0.2 percentage points compared with a 2.3% rise in July. The consumer price index excluding perishables rose 2.4%, while the index excluding foods and energy remained unchanged. I do not have any further statement to make.

[Questions and Answers]

Q.

In a speech before the U.N. General Assembly, Prime Minister Aso said that Japan wants to contribute its experiences and knowledge to debates over the international financial system. What do you think needs to be improved regarding the system and what will be the key points of the debates?

A.

As has been pointed out, Japan experienced more than 10 years of severe financial and economic hardship after the bursting of its economic bubble 20 years ago. I understand that Japan overcame its financial crisis through its own experiences of this painful period. In one sense, what was done in Japan may serve as a precedent for a solution to the situations of the United States and other suffering countries. Therefore, if Japan offers its experiences as a reference for others, it may contribute to a quick solution. Furthermore, in this crisis in particular, it is very important that the G-7 members and other countries around the world closely cooperate with one another. The Prime Minister is now in New York, and the U.S. government and Congress are apparently working together on bold measures, so the most important thing for Japan and other individual countries to do now, is to assertively do what they can on their own and actively cooperate in doing what they can do together.

Q.

This question may overlap the opening question. Congressional negotiations on the bill for U.S. financial stability measures are entering the final stage, and if an agreement on the bill cannot be reached, I expect that the market will be in a frightening situation on Monday. Could you tell me what you would like to say in your capacity as a cabinet minister, in order to encourage the United States to reach an agreement?

A.

What I said in reply to the second question was that at G-7 meetings held so far this year, there was some kind of consensus. I do not have any intention for now to strongly urge the United States to work hard or act quickly, as the negotiations between the U.S. government and the U.S. Senate and House of Representatives are at the final stage.

(End)