Following is the gist of remarks made by Mr. Hiroshi Okuda, Chairman of Nippon Keidanren, at a scheduled press conference after monthly Chairman and Vice Chairmen's meeting on 7 October 2002. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.
(Concerning Minister Takenaka's NPLs disposal team)
I see that all members of the team selected are from promoters of NPLs disposals -- unfortunately no one from the business community is included. NPLs disposal must be accompanied by anti-deflation measures (such as tax reform on securities transaction tax, land related taxes, corporate tax, re-balancing between gift and inheritance taxes, and other measures that could prop up the stock price) while speeding up writing off NPLs or else increase in unemployment could outpace what Japan could socially endure. I believe that such anti-deflation measures are far more important and urgent than creating a supplementary budget, unless Japan will be heading into a deflation spiral.
(About Minister Takenaka)
Minister Takenaka is trying to let us know that banks are in such a bad situation -- even four largest banking groups are not excluded. For this reason he is seeking ways to pour tax money into them, be it directly or through RCC, or even to temporarily nationalize them in bailing them out. I agree with him in recognition, but how to write off NPLs, how much, and how soon is the problem. I understand his stance that no companies are too big to fail. Should he decide to haste by going without adequate anti-deflation measures going parallel to the NPLs disposals, then I should say my opinion would differ from him.
(Difference between Japanese and the U. S.'s corporate governance)
Nippon Keidanren will finalize its paper by 15 October. I expect that the outcome will look totally different from the law of the U. S. I think that Japan's corporate governance weighs all stakeholders equally while the U. S. system prioritize stockowners and corporate executives -- the two lines will never intersect. However, almost all Japanese companies operating in the U. S. will have no problems in meeting the U. S. expectations.