KEIDANREN'S CALL FOR DEREGULATION


We also believe in reforming the tax system by adjusting the balance between direct and indirect taxation. That is, we believe the government should press ahead with a reduction in income tax rates. We also believeto repeat a point I made earlierthat the government should press ahead with deregulation. I have told Prime Minister Hata that the government should eliminate half of Japan's economic regulations within five years. Keidanren has submitted a proposal to the government that calls for lifting or relaxing regulations on one hundred ninety-six items in seven sectors. That proposal includes market-opening measures such as rescinding the legal restrictions on opening large retail stores, reducing price supports for agricultural products, and simplifying import procedures. Only when Japan will take such bold measures will the nation be ready for genuine change. Only when we move decisively in such ways will we gain real credibility as a nation.

In closing, let me reiterate the principles that I introduced at the beginning of my talk. I hope to help steer Keidanren in the direction of progressive planning and sure-footed implementation of policy. That progressive planning is about bold concepts that will be essential in pursuing meaningful and beneficial change. It is about bold concepts that will be indispensable in harmonizing Japan's political, economic, and social systems with the international community. Those concepts will be crucial in working to ensure an economically vigorous society for the twenty-first century.

And again, the most pressing change of all centers on deregulation. What we must do is reform practices that appear collusive from an international perspective. In every way, we need to shape a society that people anywhere can regard as open and transparent. All of these efforts that I am suggesting will shift Japan's economy from its traditional producer orientation toward a consumer orientation.

Unfortunately, time does not allow me to touch on all the issues that we will be addressing at Keidanren. We certainly will devote a great deal of attention to environmental issues, for example. And we also have a role to play in encouraging the geographical decentralization of government functions in Japan. But I can assure you, that we will bring a strong sense of purpose to bear in all our endeavors. We will be adapting our goals and our approach to the emerging needs of a new era. I hope to draw freely and widely on insights and guidance from friends around the world. And I really mean it when I ask you for your ideas and suggestions in regard to our activities.


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