Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Tuesday, October 25, 2011, from 8:45 a.m. to 8:54 a.m.)

[Opening Remarks by Minister Jimi]

Today, I do not have anything particular to report to you.

[Questions & Answers]

Q.

I would like to ask you two questions.

First, regarding measures to deal with the double loan problem, the ruling and opposition parties reached an agreement last week on the establishment of a reconstruction support organization that purchases corporate debts. Thus, we now see the full picture of the measures to deal with the double loan problem, for both individual and corporate borrowers. How do you assess those measures as a whole? In relation to that, it is a little more than seven months since the earthquake. How do you view the speed of the policy decision?

A.

As for the double loan problem, as was mentioned now, consultations were held on the revisions of the bill on the reconstruction support organization for companies damaged by the Great East Japan Earthquake, and on October 20, an agreement was reached on the revisions among the working-level officials of the three parties.

Under the three-party agreement, I believe that it is necessary to divide the roles between the reconstruction support organization and prefectural industrial reconstruction organizations - each of three disaster-stricken prefectures has received 50 billion yen from the government, if I remember correctly - and it is required that care should be taken to avoid creating confusion in the frontlines of activity. The draft supplementary resolution stipulates that this requirement be included in the bill.

If the bill has been enacted in the legislative branch, I hope that appropriate management of each organization will be ensured with that requirement in mind. From now on, we will create an organization that provides support mainly to small enterprises, agriculture, forestry and fisheries industries, and medical and welfare service businesses, and that will enhance support while ensuring that this organization and the prefectural industrial reconstruction organizations complement each other. It is important that those organizations and the organization that was previously established at each prefecture (Management Committee of Individual Debtor Guidelines for Out-of-Court Workouts) complement each other.

Q.

Now, let me ask the second question. Regarding the TPP (Trans-Pacific Partnership), the government is in the final stage of making a decision. Are you yourself for or against Japan's participation in the TPP negotiations?

A.

Regarding the TPP, as I am in charge of financial services and postal reform, I have heard of various things about the relationship between the TPP and postal reform. I am aware that the United States has indicated interest in postal affairs at the bilateral level as you know. In Washington, U.S. Undersecretary of the Treasury once expressed concern over this issue. In relation to that, we conscientiously explained the management independence of Japan Post under the current law and the fairness ensured as a result. In this respect, the attitude of both the United States and the EU is like this: “We will not comment on what form Japan's postal businesses should take, as that would be an interference in internal affairs. What we want is that as a result, fair competition between Japan Post and foreign companies is maintained.” The U.S. ambassador to Japan expressed an attitude like that to me.

As the TPP is a multilateral issue, I will clearly express my opinions if postal reform is debated in the Diet. For the moment, I have not heard of anything at the multilateral level.

Q.

I will press the same question. Are you for or against Japan's participation in the TPP negotiations?

A.

s to whether we are for or against it, Mr. Shizuka Kamei, leader of the People's New Party, has made various comments. The government has said that it will decide as soon as possible whether or not to participate in the TPP negotiations and the timing of participation after conducting a substantive debate and comprehensive study in light of the relationship between the TPP and the recovery of agriculture in the disaster areas, as well as the progress in international negotiations and concerns over the hollowing-out of industries, among other things. I am a member of the Noda cabinet, which is a coalition of the Democratic Party of Japan and the People's New Party, and various matters are still being debated. Therefore, as I previously stated, as a member of the Noda cabinet, I should not make comments with any prejudgment for the moment. All the same, I think that the timing is important.

Q.

This morning, Asahi Shimbun reported about a cyber attack on the House of Representatives. What do you think of that?

A.

I read that report carefully. Fourteen years ago, when I was Minister of Posts and Telecommunications, the status of the Internet was still such that former President Clinton's chief of staff visited Japan to discuss global rules on e-commerce. Compared with the situation at that time, over the past 14 or 15 years, IT has developed remarkably, for better or for worse. It is important to properly manage information, and technology may cause disorder depending on how people use it. Although this is my personal opinion, national awareness and international regulation are necessary. Although there are various opinions as to how regulation should be conducted, it is important that in an information society, Japanese citizens and people around the world live with peace of mind. Radio waves and information, which are public property, spread worldwide instantly.

From what I learned, optical fibers have expanded data transmission capacity 10,000-fold. The downsizing of computers has expanded capacity by 10,000-fold. No sooner were we surprised at these numbers that we saw a further technological advance expand capacity by 100 million-fold. That means, if I may use an extreme expression, that information that was previously worth 100 million yen is now worth just one yen. The speed of progress is accelerating, so we must take appropriate measures with that in mind. That is my view as a person who served as the Minister of Posts and Telecommunications in the nascent era of IT, when former President Clinton and Vice President Gore positioned the Internet as the Information Highway.

Thank you very much.

(End)

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