Chairman Mitarai's comment at his press conference

May 21, 2007

Following is the gist of remarks made by Chairman Mitarai at his Press Conference. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.

( Asked on the Japanese economy )

The outlook of the Japanese economy is just bright. Some statistics show a negative sign, but business mind is positive. Companies are still desperately in need of capital investment.

( Asked on the RMB exchange rate regime reform )

Movements in the RMB rate have gotten more flexibility. It is a good move.

( Asked on antimonopoly law reform )

The Free Trade Commission (FTC) should not wear two hats -- a prosecutor against illegal cartels and a judge of the case. Surcharges on cases of violation of the antimonopoly law should not have two effects -- forfeiture of illegal profit and criminal penalty. The FTC ought to have launched a study group to consider these key issues, but they allegedly are off the right track. It is big concern.

( Asked on EPA between Japan and EU )

The EPA with EU is a must. Fierce competition for EPA forming has been spreading all over the world. Japan is in the game. Keidanren will speak in no time.


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