Provisional translation

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

(Excerpt)

Friday, October 3, 2008

[Questions and Answers]

Q.

The U.S. House of Representatives is scheduled to vote on a bill for financial stabilization measures Friday afternoon, U.S. time. How do you feel about this?

A.

I am waiting to see how the U.S. House of Representatives will vote. When the House of Representatives rejected the bill at the first vote, stock prices fell in the United States and around the world, causing great turmoil. U.S. and Japanese economic statistics have also shown poor figures, so it is necessary for the United States, Japan, Europe and every country to make their respective efforts and cooperate with one another toward improvement.

Q.

Do you have high expectations?

A.

Are you talking about the bill?

Q.

About its enactment.

A.

Of course, I am not in a position to make comments on the contents of the bill. However, as the U.S. government has concluded that the bill is necessary for resolving the situation, I hope that it will be enacted.

Q.

There was a media report that Mitsubishi UFJ Financial Group has reached a basic agreement to merge its securities subsidiary and Morgan Stanley’s Japanese subsidiary. Could you provide information regarding this if you have any?

A.

I have not heard about it.

Q.

Could you tell me about your thinking regarding whether or not to appeal the case of Daiwa Toshi Kanzai to a higher court?

A.

We should not waste time on this matter, so I would like to make a decision today.

Q.

What kind of decision would that be?

A.

I do not know yet. I will make a decision after receiving a briefing from my staff.

Q.

Will you make a decision today?

A.

If possible. I think it is better to make a decision quickly, rather than waiting until next week or later.

Q.

Mr. Yanagisawa of the Liberal Democratic Party’s financial project team has suggested that the existing preferential tax treatment of securities investment be maintained next year and beyond. What is your view on this matter?

A.

That is outside the framework of the upcoming supplementary budget, so what I said earlier should suffice as a reply to your question.

(End)