Press Conference by the Press Secretary 29 March 1996

The agreements reached on 28 March by the Japan-United States Special Action Committee on Facilities and Areas in Okinawa (SACO)
Foreign Ministry Spokesman Ken Shimanouchi: Good afternoon, ladies and gentlemen. As you know, the Special Action Committee on Facilities and Areas in Okinawa (SACO) is now undertaking two types of tasks. One is to address various issues related to the Status of Forces Agreement (SOFA). The other is to address the issue of realignment, consolidation, and downsizing of bases in Okinawa. The agreements reached yesterday fall into the first category, that is to say, issues related to the Status of Forces Agreement. There were three agreements -- two agreements regarding noise abatement countermeasures for Futenma Air Base and the Kadena Airfield, and a third agreement concerning identification tags for official United States military vehicles in transit on the public thoroughfares of Okinawa. With regard to the Noise Abatement Countermeasures Agreement for the two bases, let me correct myself. The official name for Kadena is Kadena Air Base, and the official name for Futenma is Futenma Air Station. Let me give you just two salient features of these agreements. The two agreements establish countermeasures comparable to those in place at the Atsugi Naval Air Facility in Kanagawa Prefecture, and at Yokota Air Base in Tokyo. The agreements also include consideration for days that carry special significance, such as Memorial Day in Okinawa -- 23 June. That is the day that the Battle of Okinawa ended. The agreements contain a lot of detail, but just let me give you one example. Night flights between 22:00 and 06:00 will be restricted to those essential to the operation of United States forces. Also, under the agreements, commanders will have the responsibility to continue to review any ways to reduce aircraft noise. Regarding the agreement on vehicle markings, basically, it requires that all United States forces official vehicles display both front and back number plates when using public or private Japanese roads outside the bases. This agreement also spells out the size of the tags, and other specifics.
Revision of Japan's Deregulation Action Program
Foreign Ministry Spokesman Ken Shimanouchi: The revision of Japan's Deregulation Action Program was announced this morning by the Japanese Government. As you know, the Japanese Government gives highest priority to deregulation. There have been requests for deregulation from overseas, but the significance of deregulation does not stop there. It is essential for reactivating Japan's economy. Let me give you a little bit of background about this Action Program, although, I believe that those of you who were here in Japan about this time last year already know about it. Last year, the Japanese Government announced its Deregulation Action Program. It was originally announced as a five year plan, but subsequently shortened to three years. At the time of the initial announcement, it was clearly stated that the Program would be reviewed and revised each year. The decision reached this morning pertains to the first revision of the Three Year Plan. The review and revision over the past year has been carried out basically in two tracks. The first track is the Administrative Reform Committee track. The Administrative Reform Committee is an independent third- party watchdog created by legislation. Most of its work is accomplished by the members of a subcommittee within it. This subcommittee has twelve members. They are all private citizens, including representatives of foreign companies. Last December, the Administrative Reform Committee put together and submitted its recommendation to then Prime Minister Tomiichi Murayama. Since then, the Government has been looking at the recommendations of the Committee. We have been trying to translate these recommendations into actual deregulation policy. That is the first track. The second track is the review and revision carried out by the Government itself. To carry out these tasks, an Administrative Reform Headquarters was established. It is headed by the Prime Minister himself. The Headquarters held two two-day hearings: one in December, and the second in February. Also, the Government solicited views from interested parties, both foreign and domestic, and both public and private. For your information, the United States Government provided submissions, as did the EU Commission. Also, from the private sector, the American Chamber of Commerce in Japan presented its submission. Other countries -- Canada and Australia -- also provided submissions. From the Japanese private sector, the Japanese Federation of Economic Organizations (Keidanren) submitted a very lengthy list to the Government. One more point, before I go into the specifics -- this is a continuing process. We are at the end of the first year, and this process will go on for two more years. Basically, the process next year will be very much like the process that has been pursued in the past year. The only difference is that since the Administrative Reform Committee has already made its recommendation, the Committee will also be monitoring the development of deregulation activities by the Government. So, the Administrative Reform Committee, from the second year on, will have a two-fold role. The first is to monitor the deregulation efforts of the Government, and the second is to come up with further recommendations regarding deregulation. You have before you a document titled, Salient Points of Japan's Deregulation Action Program. The full text is not yet available. We hope that can be made available to you before the end of the day, but it is 230 pages long. This document here is not a very short document, itself, either. It has 19 pages with two attachments, so I will not be going over all the points listed in the document. Let me just mention two items which have drawn considerable attention and interest here in Japan and overseas. The first is on page three of the document -- construction and construction materials. As you may recall, when Prime Minister Hashimoto visited Santa Monica in February, he told President William Clinton of the United States of America about his initiative for reducing housing construction cost. Under the instruction of the Prime Minister, the Emergency Priority Program for Reducing Housing Construction Cost was announced. The unique feature of this program is that it focuses on a specific sector -- housing -- and brings together a broad range of approaches and techniques, which we believe will be conducive to slashing the cost of housing. Let me give you two examples of such techniques or approaches. One is the shift from prescriptive regulation, which is being currently employed, to performance-based regulation. We believe that this will be conducive to more imports of housing materials from overseas. Another aspect is that the mutual recognition of building codes and international alignment of Japan Industrial Standards (JIS), and other standards, will be promoted. This will stimulate the acceptance of foreign building materials in Japan. There is a long list of other measures mentioned in this document, as well as in the attachment.
Telecommunications deregulation
Foreign Ministry Spokesman Ken Shimanouchi: One important aspect of the telecommunications package is the amendment of the Telecommunications Business Law. To be more specific, Article X will be abolished in the course of FY1996. As this document says, this article concerns the prevention of excess facilities, and the adjustment of supply and demand, so as to ensure further transparency for the new entry of type-one telecommunications carriers. This has been seen by businessmen in Japan and overseas as sort of a symbol of government intervention in the market, although this measure has already been rendered obsolete by a change in circumstances. So, we will be deleting this article from the Telecommunications Business Law. Another aspect is ensuring transparency in terms and conditions of interconnection. Specific measures to this end will be devised by the end of 1996. As you know, NTT monopolizes the local networks in Japan. It is against this background that these measures are being contemplated. Another item worth measuring may be the shift from an authorization system to a prior notification system on rates charged for mobile communications. I think this will be in the interest of all of us here.

Those are the announcements that I wanted to make, and I will be delighted to respond to any questions that you might have.
The position of Japan regarding nuclear deterrence
Q: Can you please comment on the latest United States defense paper, especially the part that says that the United States must maintain a highly effective nuclear force as a deterrent?

A: I have not seen the text of the paper yet, so I cannot comment on the paper itself. However, as you know, Japan is of the position that it should work for a world that is free from nuclear weapons. That is to say, we should work for the ultimate elimination of nuclear weapons. We are making realistic efforts in Geneva and elsewhere in order to bring this about. At the same time, we believe that military power, including nuclear deterrence, plays an important role in maintaining peace and stability in the world. We fully recognize that Japan itself depends on the United States nuclear deterrence to maintain its security.
Matters regarding Okinawan concern over Futenma Air Station
Q: You have just announced noise reduction agreements, etc., concerning Okinawa. The point on the side of the Okinawa people is they want Futenma Air Station to be moved elsewhere -- at least a portion of the function. What is the situation here? And, my second question is, what else do you expect the two countries can reach an agreement on concerning the realignment of Okinawa bases before President Clinton's visit next month.

A: Regarding Futenma, we are fully aware of the desires and wishes of the people of Okinawa, particularly regarding the return of Futenma Air Station. It is one of their highest priorities. But, at the same time, we have to recognize that the Futenma Air Station plays an extremely important role in the operation of United States forces in Japan. So, we believe that this issue of the reversion of Futenma Air Station needs to be dealt with very carefully. As you are well aware, the Special Action Committee on Areas and Facilities in Okinawa (SACO), which I mentioned in my first announcement, is now conducting a comprehensive review of the situation related to United States bases in Okinawa. It is now in the process of identifying and sorting out the problems related to each base -- a process which will continue. When the SACO was established in November last year, both governments announced that they would try to reach a conclusion on the question of realignment, consolidation, and downsizing of bases within a year. So, the target is November this year. President Clinton's visit to Japan next month will be a very important phase of the process, so we will be trying to make as much progress as possible by then. But, I have to repeat that this is basically a one-year process. I think that answers your second question as well.
Matters involving the land lease contract for Sobe Communications Base
Q: The land lease contract covering part of the Sobe Communications Base is expiring on Sunday. Now, apparently, the Government thinks it is not illegal that the contract has expired. Do you think that the situation can be rectified before President Clinton's visit?

A: As you said, we do not think an illegal situation will be in effect after 31 March, although we cannot deny the fact that there is a dispute between the land owner and the Government. The reason we think that the occupation of this plot of land by the Government will not be illegal is as follows. We have been occupying and using this plot of land, lawfully, for 20 years, in accordance with a lease contract with the landlord. It is an obligation under the Security Treaty that we continue to provide this land for the use of United States forces. Not only that, the use of this plot of land by the United States forces is necessary from the perspective of the peace and security of Japan, and of the Far East. The third reason is, we are currently making efforts, in accordance with the relevant legislation, to obtain the right to use the land. Fourthly, we have taken measures to provide amounts of money to the land owner equivalent to the rent, so that he will not suffer monetary damages. We will be applying to the Land Expropriations Committee of Okinawa for permission to use the land on an emergency basis. The Land Expropriation Committee is an independent organ. It is up to the Committee as to when and what to decide. I cannot speculate on the timing of the decision by the Committee. Although, of course, it is the Government's hope that this issue will be settled as soon as possible.

Q: By saying "as soon as possible," you mean by before President Clinton's visit, right?

A: Yes, that would be extremely desirable, of course.
Anti-monopoly measures in the telecommunications industry
Q: You talked about the Deregulation Action Program. Could you say what made the decision of the breakup of NTT? It seems to be sort of deregulation.

A: I have to make a confession. I am not an expert in the area of telecommunications. My understanding is that a consensus was not reached on this matter. It is still being discussed. But, we can arrange a briefing by an expert from the Ministry of Post and Telecommunications to fill you in on this matter if you are interested.

Q: Yes, thank you.
Recent efforts to extradite a Japanese national held in the Kingdom of Thailand on charges of highjacking
Q: There have been reports of a former member of the Japanese Red Army caught in Thailand on charges of highjacking. Could you update us on the situation now?

A: Regarding the highjacking of the Japan Airlines plane that took place in 1970. This man, detained by police in the Kingdom of Thailand, has been confirmed as Yoshizo Tanaka, who is a suspect in the highjacking incident. We will be seeking consultations with the authorities of Thailand to obtain his extradition. That is all I have at this moment.
Matters regarding travel for Minister for Foreign Affairs Yukihiko Ikeda
Q: Does Foreign Minister Ikeda have any plans to visit India this year?

A: No decision has been made regarding his future travel plans to any country.
Progress made in the course of implementing the Deregulation Action Program
Q: On the anniversary of this Deregulation Action Program, can you tell us how many of the 1,700+ points to be deregulated from last year have been achieved?

A: That is not an easy question to answer. I do not even know if the foremost expert in this ministry can answer that question. You have to look at each item one-by-one. It is very difficult to generalize.

Q: I suppose, then, I should ask if you are making progress?

A: I can give you a breakdown of the 1,700+ items: 550 are brand new; 400 were included in the previous package, but have been announced in more concrete form this time; around 700 are confirmations of things that we said would be done in this current fiscal year.

Q: So, what is the total?

A: I do not have the exact figures, because I have not had the opportunity to look at the final document. Once we have the final report, I can count the number of items and tell you.

Q: Thank you.
Possibility of a future visit to Japan by newly-elected Prime Minister John Howard of Australia
Q: There is a new government in Australia. I am just wondering if the Japanese Government has made any moves to invite the new Prime Minister to come to this country?

A: I am not aware of specific plans to extend an invitation to newly-elected Prime Minister John Howard of Australia. But, I can say in very general terms, that his visit to Japan would be very much welcomed. Australia, as you know, is a very close friend of Japan. Thank you very much.

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