To provide additional perspective on the Japanese Government's recently announced $128 billion economic stimulus package, over $42 billion of initiatives to ease the Asian financial crisis and other previously announced budgetary, fiscal and liberalization measures, The Japan External Trade Organization (JETRO) provides the following information. The complete text of JETRO's Focus: Asian Finance Newsletter can be viewed at its internet web site at: http://www.jetro.org/newyork/press-release/pres0604.html.

PERCEPTION: Japan has not taken sufficient steps to stimulate its domestic economy.

REALITY: The Japanese Government Recently Announced a $128 Billion Economic Stimulus Package. It is Equal to Approximately 3% of Japan's GDP.

The latest Japanese budgetary and stimulus measures -- the largest in Japan's history -- represent a major step forward. They will also help to promote a wide range of structural reform initiatives. These measures will be implemented after they are approved by the Japanese Diet. This package will help to expand macroeconomic demand and to restore confidence and stronger economic growth in Japan.

PERCEPTION: Japan has a significantly greater economic exposure in Asia than the United States and Europe.

REALITY: Japan, Europe and the United States All Have Substantial Exposure.

While Japan has a major presence in affected Asian countries, Europe and the United States also have a major financial exposure. For example, the net capital position of international bank lending in Asia among European financial institutions exceeded those of Japan by $84 billion at the end of June 1997. The U.S. lead as the largest portfolio investor in Asia in 1996, generating a net capital inflow of $38 billion, as compared to only $3 billion for Japan.

PERCEPTION: Japan is doing very little to rescue Asia.

REALITY: To date, Japanese initiatives to ease the Asian financial crisis have totaled approximately $42 billion.

Japan has initiated a wide range of measures to alleviate the fiscal and liquidity pressures that are a legacy of last fall's Asian financial crisis. This includes support for IMF-coordinated lending (Japan has allocated $19 billion for Thailand, Indonesia and South Korea as compared to $8 billion by the U.S.), long-term funding to maintain large-scale infrastructure development and an expansion of trade finance programs to facilitate the flow of goods and services within the region and the world at large.

To obtain a hard copy of this newsletter and additional information on the Japanese Government's economic stimulus package, its ongoing Structural Reform Program, and Japan's role in the Asian financial crisis, please contact KWR International or JETRO's New York office as indicated below.

Focus: is published and disseminated by KWR International, Inc. 140 West End Avenue, New York, NY 10023, Tel: 212-799-4294, Fax: 212-799-0517, E-mail:kwrintl@kwrintl.com, which is registered on behalf of JETRO New York, 1221 Avenue of the Americas, New York, NY 10020, which is registered as an agent of the Japan External Trade Organization, Tokyo, Japan. Additional information is available at the Department of Justice, Washington, D.C.

CONTACT:
JETRO New York
Toshinaga Hirai/John Daly
Phone: 212/819-7762
Fax: 212/819-7781
E-mail:inquiry@newyork.jetro.org
or
KWR International Inc.
Keith W. Rabin
Phone: 212/799-4294
Fax: 212/799-0517
E-mail:kwrintl@kwrintl.com