Chairman Okuda and Chairman-nominee Mitarai's joint Press Conference
and Chairman Okuda's Press Conference

January 23, 2006

Following is the gist of remarks made by Mr. Hiroshi Okuda, Chairman, Keidanren and Mr. Fujio Mitarai, Chairman-nominee at a joint press conference on 23 January 2006. This is followed by a scheduled press conference by Mr. Hiroshi Okuda. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.

Joint press conference

(On nominating Mitarai to be Okuda's successor)

(Okuda)
As previously announced, I decided to nominate Mr. Mitarai as my successor at the next General Assembly meeting on 24 May, and received consent of other Keidanren leaders. He is a man of wisdom; CEO of a manufacturer who is knowledgeable on Japanese manufacturing and R&D that turned Canon into a global power. Both the company and Mr. Mitarai are globally minded. He is knowledgeable of Keidanren's work style. All these factors combined made him a good nominee. He should be able to exert a strong leadership to guide Keidanren and Japan's businesses towards sustainable economic growth under business sector initiatives.
There remains many important agenda that Japan must overcome, including social security reform, tax and fiscal reform, public employee reform, measures against decreasing birthrate, and more proactive approach towards EPA. In doing so, stronger relationship with the politics and enhancing business sector financial contributions must be continued.

(On Mitarai's accepting nomination)

(Mitarai)
A heavy responsibility lies ahead. I would try my utmost to improve Japan's and hence world's economic climate. I will seek further transition of Japan's society from the government to private. In doing so, I will follow the path Mr. Okuda has kindly laid out in front of me. This should lead Japan to remain strong even under declining population.
The largest task is to overhaul Japan's tax system, build a sustainable social security system, and to make sure a success in WTO negotiation and secure bilateral interest through FTAs.

Mr. Okuda's press conference

(On expectation towards Mr. Mitarai)

He should be able to contribute towards making Japan a leading nation in science and technology. Meanwhile, I shall pursue existing agenda before passing on to Mr. Mitarai in May.

(On Livedoor inquiry)

Keidanren will consider sanctions on Livedoor after thoroughly learning the case.
There are new start-up companies that are led by young entrepreneurs. They work hard and are trying to become a part of the society. It is wrong to deny them -- Keidanren will continue to support them.

(On import of the U. S. beef)

The fault is at the U. S. side so they must rectify what is necessary. After that, both should meet again and restart import as soon as possible.

(On Tokyo Stock Exchange overflow)

No one expected the growth of traffic so rapidly among "day traders" as well as non-Japanese securities companies that bring orders in smaller lot. TSE should have worked harder to expand its capacity.

(On relationship with neighboring countries)

Relationship with China and Korea are not excellent in politics. I do hope that top meeting will be realized while Mr. Koizumi is the Prime Minister.


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