I do not have anything particular to report to you about today's cabinet meeting. As there is a committee meeting that began at 10.a.m, nothing particular was discussed.

As I said when I met with representatives of financial institutions the day before yesterday, I received a great number of various opinions after I suggested in a television program about two weeks ago - I made this suggestion because I heard that there were numerous complaints about curbs on loans - that opinions about curbs on loans be sent to me directly. I have to examine each and every one of them myself. However, as this is not a problem that does not concern only me, the FSA (Financial Services Agency) has set up a contact point through which opinions and complaints are accepted either via postal mail, e-mail or telephone. Details will be announced later by FSA staff. We already received three opinions and complaints yesterday, one of which was a complaint about a financial institution's refusal to provide a loan to a well-performing business planning a business expansion. Of course, I will not order the provision of support to any specific company, as it would be an inappropriate intervention. I am hoping to contribute to the elimination of cases of financial institutions curbing new loans or collecting outstanding loans in general. Through hearings with financial institutions, we can only collect the opinions from the lender side, so we have launched the new system of inviting opinions, hoping to narrow our perception gap with hard-working borrower companies. I have instructed FSA staff to immediately forward to me the opinions received through the new system. Yesterday, I received so many e-mails that I could not have read all of them even if I had stayed awake all night, so I just took a cursory look at them. However, I would like to establish my own arrangements for properly reading e-mails received through the new system. I want the e-mails to be forwarded to me without any alteration. If I detect any alteration, I am determined to take harsh disciplinary action. Although I do not expect to face such a situation, I am tackling this issue with that kind of firm stance.

Earlier today, the Prime Minister summoned me and expressed strong concern about recent volatile stock price movements. As these could affect the real economy and the financial system, he instructed me and the policy planners of the ruling parties - the Liberal Democratic Party and the New Komeito - to take steps to stabilize the market and ensure the smooth exercise of financial functions. Minister (of Economy, Trade and Industry) Yosano and the Chief Cabinet Secretary (Kawamura) also attended the meeting.

Specifically, he instructed us to rebuild public confidence in the government and the market by issuing the instructions that I will now explain to you. This is necessary not only for Japan's sake. As this is very important, he told us to do what we can boldly and as soon as possible. I will explain what we are able to do from today, or later.

First, the Prime Minister instructed me to tighten restrictions on short selling of stocks in order to stabilize the stock market, and this will be decided at a cabinet meeting on Friday. We will tighten restrictions as soon as possible, by the first trading day of November - that is, just after the three-day weekend starting on November 1. In addition, we would like to quickly start allowing the flexible application of restrictions regarding banks' stockholdings.

Secondly, regarding the strengthening of financial functions, the Prime Minister gave me instructions concerning a partial introduction of flexibility into the capital adequacy ratio regulation. “Partial” introduction means that flexibility will be applied to banks subject to domestic capital adequacy standards, as opposed to those subject to international standards. Next, he gave instructions concerning support for efforts to ensure appropriate accounting of financial instruments, an issue being debated by the Japanese Institute of Certified Public Accountants. I understand that a public comment regarding this will be issued soon. Thirdly, he instructed me to consider expanding the scope of government capital participation based on the Act on Special Measures for Strengthening Financial Functions. This involves legislation, so we will ask the Diet to enact a relevant bill as soon as possible.

Another planned measure is facilitating stock purchases by employees' stock ownership schemes, which has been proposed by the Prime Minister. We have requested the Japan Securities Dealers Association to consider this measure, so we expect that it will be able to be implemented immediately.

These are the instructions the Prime Minister gave me. As for the ruling parties - and I think that ruling party officials will give you explanations - the Prime Minister instructed them to consider how to use the Banks' Shareholdings Purchase Corporation, apparently referring to stock purchases by this corporation. In addition, he instructed them to consider extending the effective period of the reduced tax rate for securities investment, along with the possible enhancement of tax breaks. He also gave instructions regarding a plan to expand the securities market by providing preferential treatment to small-lot investors.

These are the instructions issued by the Prime Minister. As I told you, he instructed us to start with what we are able to do immediately, and the measures I have explained to you are the ones that we can start immediately.