(* This is a provisional translation by an external company for reference purpose only. The original text is in Japanese.)

Press Conference by Minister for Foreign Affairs Hirofumi Nakasone

Date: Friday, October 31, 2008, 10:19 a.m.
Place: Briefing Room, Ministry of Foreign Affairs

Main topics:

North Korean Issues
Crash Landing and Burning of a Cessna Belonging to Kadena US Air Base Aero Club
Emergency Economic Measures

1. North Korean Issues

Question:
Regarding the matter of North Korea's reinvestigation on the abductions issue, there is a report that North Korea communicated to the Chinese Government that it was planning to refuse the reinvestigation because it could not find any merit to do so which has been conveyed to the Japanese Government by the Chinese Government. Is there any truth to this?

Minister:
There is no truth to these reports.

Question:
Up until now, has there been any sort of response from North Korea regarding the reinvestigation of the abductions?

Minister:
No, there hasn't. Although I believe that this message has been conveyed through the Prime Minister's statements as well as my own, I would like to reiterate that there is no change in the Aso Cabinet's policy to go through with what was agreed upon at the Japan-North Korea Working-level Consultations in August. I hope for a full reinvestigation on the issue as soon as possible. There is no change in our position of following through with the actions that Japan has promised on the principles of "action for action" and "simultaneous action," that is to say, we will lift the restriction on personnel exchanges as well as the restriction on chartered air travel, as soon as the reinvestigation starts.

Question:
When you stated that there was no truth to the reports, did you mean that it is not true that North Korea communicated this to China or that this was not communicated from the Chinese side to the Japanese Government?

Minister:
I do not know what exchanges took place between North Korea and China, but I do know that no such communication has been conveyed to the Japanese Government from the Chinese Government.

Question:
Some members of the government are of the opinion that if North Korea does not show any progress in the abduction issue, we should impose more effective sanctions on it. Is any sort of concrete measure being considered?

Minister:
I am sure there are various discussions within each political party and at the Diet. However, I will refrain from making any comments in the capacity of a member of the government prior to the discussions at the Diet.

Question:
Is the Japanese Government planning to confirm the dialogue in question between China and North Korea?

Minister:
At the moment, we are not planning to confirm the dialogue in question between China and North Korea.

Question:
Regarding sanctions against North Korea, it seems that there are opinions within the government or within the ruling parties that the sanctions currently being imposed by Japan are not very effective. What are your thoughts on this?

Minister:
I plan to continue with the so-called policy of dialogue and pressure while giving consideration to the balance of this policy and demanding concrete action from North Korea. As for additional sanctions, we have and will continue constant deliberations within the government on what measures to take against North Korea. In any event, we will make comprehensive decisions based on North Korean responses to the three matters of concern - the abductions issue, and nuclear and missile issues - as well as the Six-Party Talks and the actions of the international community such as at the United Nations Security Council.

Question:
There seem to be some difficulties in planning the Six-Party Talks and there are some who think that the talks might be delayed. What are your thoughts on this?

Minister:
At the moment, nothing has been decided regarding the schedule.

Question:
Is there any possibility that it will held sometime this month?

Minister:
Nothing has been decided.

Question:
Originally, the deadline for the disablement of nuclear facilities was the end of this month. Now that this has become impossible, what do you think future prospects are and what do you think of this delay?

Minister:
The important thing is that US-North Korea Consultations are held, the Six-Party Talks are held and the disablement of nuclear facilities is completed. The most important thing is that the parties, including North Korea, adopt an effective verification protocol, so for the immediate future the main issue is to hold the Six-Party Talks as soon as possible. As for the disablement of nuclear facilities, it has been reported in the news that North Korea is proceeding with this little by little and I think this is significant.

2. Crash Landing and Burning of a Cessna Belonging to Kadena US Air Base Aero Club

Question:
Regarding the light airplane crash in Okinawa the other day, it has been pointed out that the Japan-US Status of Forces Agreement is inhibiting the investigations. As current actions to improve the Japan-US Status of Forces Agreement are limited to the improvement of its procedures, please comment on your current thoughts regarding the revisions of the Agreement and so forth.

Minister:
Up to now, numerous issues involving US Forces have occurred, and each time such issues have been resolved through the improvement of the Japan-US Status of Forces Agreement procedures. From the perspective of residents, there are likely thoughts of the need for revision of the Japan-US Status of US Forces Agreement, but issues have been addressed through the improvement of the procedures. In the first place, the Japan-US Status of Forces Agreement is an agreement of the placement and activities of US Forces in Japan, and is the most important agreement within the Japan-US Security Treaty. I think it is practically adequate that we will continue to seek the improvement of the procedures of the Agreement on a case-by-case basis.

3. Emergency Economic Measures

Question:
Yesterday Prime Minister Aso announced emergency economic countermeasures. How do you think such measures will impact the international community? What are your thoughts on this, especially concerning the prospect that while international conferences such as a financial summit and the APEC summit in Peru are drawing near, the dissolution of the House of Representatives will likely be postponed?

Minister:
Firstly, regarding the impact on the international community of yesterday's countermeasures, Japan developed these economic countermeasures in addition to the recent supplementary budget, and I think that they will be met with high approval. In the context of the current global financial crisis, it has been said that the damage to Japan has been comparatively small. However, in a situation where numerous indexes show that the economic climate will again worsen, I think that developing countermeasures such as these in order to stabilize domestic economic conditions will be met with high approval. The issue now is for the members of the opposition parties to cooperate with us and put these measures into effect.

Question:
Regarding Prime Minister Aso's economic measures, we have been informed that the Prime Minister would also like to raise the consumption tax in three years in addition to these measures. Please tell us your thoughts on the raising of the consumption tax.

Minister:
In order to implement economic countermeasures and stimulus measures, naturally, financial resources are involved, and this point must not be ignored. Firm backing must definitely be in place. Reform of government revenues, which includes the review of the direct-indirect tax ratio, has been constantly called for from before. The people of Japan understand to some degree that such reform must be carried out at some point. I think this perception is basically consistent with the Prime Minister's view that it will take three years for a full recovery. I think, though, that the actual development will be influenced by varying political climate and economic recovery conditions.

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