Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Tuesday, Sept. 13, 2011, from 9:26 a.m. to 9:32 a.m.)

[Opening Remarks by Minister Jimi]

I do not have anything particular to announce.

[Questions & Answers]

Q.

Today's cabinet meeting was the first since the change of the Minister of Economy, Trade and Industry. How do you feel about the change of the Minister of Economy, Trade and Industry?

A.

Basically, the decision was up to the former Minister of Economy, Trade and Industry and the Prime Minister. The appointment of cabinet ministers is a prerogative of the Prime Minister. He (Minister Edano) is a former Chief Cabinet Secretary, and I was a cabinet member when he was serving in that post, so I have worked with him for a long time. In particular, as he worked very hard to deal with the nuclear power plant accident, we may be reassured by his appointment as the Minister of Economy, Trade and Industry. I am sure that Mr. Edano will do his job properly.

Q.

What do you think of the damage done to the Noda government?

A.

The Prime Minister will make his first policy speech today. I suppose that there has not been such damage as was expected.

Q.

Late last week, the G-7 meeting (of Finance Ministers and Central Bank Governors) was held, and the financial market has not yet been stabilized. What is your assessment of the G-7 meeting?

A.

As I mentioned previously, the economic and fiscal conditions of Europe and the downside risks for the U.S. economy were apparently major topics at the G-7 meeting. In particular, regarding the European debt problem, the status of Greek debts is deviating from a promise made one or two years ago, so it is not easy to resolve the debt problem. Because of the historical backgrounds, European banks have significant loan exposure to Greece, with French banks providing a particularly large amount of loans to that country, so a certain statement was issued. Although frank and long discussions were apparently held, the discussions have boiled down to that statement, from what I heard from Minister of Finance Azumi.

Broadly speaking, there is a confrontation between the United States and the EU. As you know, the United States and Europe took different attitudes toward finance at the time of the Lehman shock and also before and after that, and at summit meetings, too, there is a very wide difference between the United States and the United Kingdom on the one hand, and France and Germany on the other hand. When Mr. Koji Omi was Minister of Finance, there were various points of difference. For a long time, there have been underlying differences in the basic approach to finance between Anglo-Saxon and Continental countries.

My point is this. Circumstances differ from country to country. Countries have different histories, cultures and traditions. The position of the economy also differs from country to country. However, this time, countries around the world are moving in the same direction from a broad perspective, and that is the difference from the situation after 1929, in which the world was divided into economic blocs, which I have often mentioned. Countries have gone so far as to carry out coordinated interventions. I hear that a G-7 meeting and two G-20 meetings will be held before the summit meeting. Various opinions may be expressed at individual meetings, but from a broad perspective, a consensus must be forged by all means. I feel this is a mission for humanity.

Q.

Mr. Edano held a key post in the Kan government, and opposition parties criticized his appointment as the Minister of Economy, Trade and Industry. What do you think of that?

A.

I am not aware of such criticism at all. A little more than a decade ago, I was the chief executive of the House of Representatives' Budget Committee on the Liberal Democratic Party's side, and Mr. Edano was my counterpart on the Democratic Party of Japan's side. When he became Chairman of the Policy Research Committee, he was succeeded by Mr. Ritsuo Hosokawa (a member of the House of Representatives). Minister Edano is a man of character. I know him very well in that sense.

Thank you very much.

(End)

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