[ Nippon Keidanren | Press Conference ]

Chairman Okuda's Press Conference

May 28, 2002

Following is the gist of remarks made by Mr. Hiroshi Okuda, Chairman of Nippon Keidanren, at a press conference following the Federation's first annual general assembly on 28 May 2002. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.

(Asked how should the Federation's name be shortened)
Prime Minister Koizumi gave us a good name -- the long Japanese name is Nippon Keizai Dantai Rengokai; it's short name is Nippon Keidanren; the long English name is Japan Business Federation, the abbreviation is JBF; but I am not sure how non-Japanese media would call us.

(Asked on how he wants to run the Federation)
When Mr. Imai asked me to take up the post, I decided to do all what I can. I will pour my energy in running the Federation. I will keep my membership on Council on Economic and Fiscal Policy until the term expires in January 2003. I will also chair the Board of Directors and to evaluate new cars at Toyota Motor Corporation.

(Asked on the state of Japanese economy)
There are some good signs in statistics. Prospects of corporate performance in fiscal year 2002 look better than those of 2001. However, unemployment rate remains high, consumption remains low, and facility investment remains low. I sincerely hope that more good signs would appear by this summer. On a longer term, there is a fear about shortage of labor force, caused by declining birthrate. Japanese should utilize its intelligence to develop and sell goods with originality -- this is how Japan could survive international competitions. In any case, business sector should develop and sell what consumers want to buy. Government, meanwhile, should create a sustainable social security system on pension, medical care, and welfare. If all work well, consumption will surely pick up.

(Asked on how he wishes to define the relationship between business and politics)
I personally believe that politics must be financed by private donations and official party support (subsidy). At this moment, companies are contributing within the framework of existing law, but many news of political corruptions makes me to put hold on reforms for the time being until cleansing will be completed.

(Asked on his view over Shenyang incident)
I have no more depth in information than publicly available ones. On personal basis, I see no needs to withdraw or withhold Japanese investment into China by this incident.

(Asked on his views over Japan's ratification of Kyoto Protocol)
Japanese government should bring those countries who oppose Kyoto Protocol, such as U. S. and Canada while business community must keep up with the its own promises.

(Asked on his views over rating decline)
Japan has ability to repay debt, and I personally see no reason to lower the rate. In any case, Ministry of Finance should make Japan's case better known.


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