The Japanese Minister of International Trade and Industry (MITI), Kaoru Yosano, spoke today before the Council on Foreign Relations in a speech entitled "Japanese Economy for the Future and Japan-U.S. Partnership."

In his remarks Minister Yosano described current efforts to revitalize the Japanese economy, with a particular emphasis on supply side reforms. He also addressed the need to enhance Japan's global economic policies grounded in a stronger relationship with the United States.

Prefacing his remarks with comments on the current political situation in Japan, Minister Yosano began with an overview on the current state of the Japanese economy. He described new measures implemented by the Japanese government to promote economic revitalization. These include: a) a 60 trillion yen program to resolve bad loans and restore the health of Japanese financial institutions, b) initiatives to address the credit crunch effecting Japanese and Asian companies, and c) economic stimulus measures totaling over 27 trillion yen to restore consumer confidence and demand.

Minister Yosano highlighted the Japanese government's ongoing commitment to economic reform, noting the need to promote market competition and greater mobility of personnel, capital, technology and other management resources. He also emphasized the importance of developing new industries and employment opportunities stressing the need for increased deregulation in these areas. Citing the major progress that has been achieved in Japan's retail, telecommunications, petroleum and financial services sectors, Minister Yosano noted the importance of foreign direct investment by U.S. and foreign firms and called for additional development in sectors including medical care, social welfare, logistics, biotechnology, alternative energy and energy conservation.

Proceeding with comments describing the reorganization of MITI into the new ministry of international trade, industry and economy by 2001, Minister Yosano highlighted the active role MITI will play in coming years to promote deregulation, human resources empowerment, the development of financial safety nets and the reform of corporate laws. He noted it would also participate more vigorously in macroeconomic policy formation.

In respect to Japan's global economic policies, Minister Yosano expressed his strong belief that Japan-U.S relations are central to Japanese international economic relations. Noting that Japanese and U.S. actions have global implications, he emphasized the need for stronger cooperation based upon a common faith in democracy and market mechanisms and the strong security ties shared between the two nations.

Calling for a new paradigm to increase mutual understanding and cooperation, Minister Yosano proposed that Japanese and U.S. economic policy officials meet more regularly to engage in fuller, frank discussions. The agenda would include not only bilateral concerns, but also issues pertaining to Asia and the global economy. In addition, Minister Yosano stressed the need to strengthen channels of communication between Japanese and U.S. business.

Citing the need for stronger cooperation between Japan and the U.S., Minister Yosano highlighted numerous multilateral issues that could be addressed. These include the need to promote structural reform within the APEC framework and to build momentum for the next negotiations of the World Trade Organization (WTO). Emphasizing that Japan and the U.S. share many common positions, including the need to balance environmental protection with economic development, he expressed his belief that the prospects for bilateral cooperation are nearly limitless.

Minister Yosano concluded his remarks noting the Japanese government will play its part and throw its full weight behind efforts to restructure its domestic economic system. This will be done to restore positive momentum within Japan and its Asian neighbors and to promote growth within the world economy.

A complete copy of Minister Yosano's remarks can be viewed at JETRO NY's Internet web site: http://www.jetro.org/pr011199.html . Minister Yosano will also appear this evening (January 11, 1998) on the Charlie Rose Show, which is broadcast on public television stations nationwide. It can be seen at 11:00 PM in the New York area on WNET, Channel 13 and in the Washington D.C. area on WETA, Channel 26. Other locations should check their local television schedule.

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