(* 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 Koichiro Gemba

Date: Wednesday, November 9, 2011, 5:05 p.m.
Place: MOFA Press Conference Room

Main topics:

Opening Remarks
- (1) Attendance at APEC Ministerial Meeting
- (2) Visit to Japan by H.E. Mr. Nassir Abdulaziz Al-Nasser, President of the 66th session of the United Nations General Assembly
- (3) Response to World Cup Match between Japan and North Korea
Japan-China Relations
TPP
Nuclear Exports
Measures Related to World Cup Match between Japan and North Korea
Other (Hidden Losses by Japanese Company)

1. Opening Remarks

(1) Attendance at APEC Ministerial Meeting

Minister Gemba: I am scheduled to visit Honolulu from Thursday, November 10 to Saturday, November 12 to attend the 23rd APEC Ministerial Meeting, subject to approval from the Diet.
Parliamentary Senior Vice-Minister for Foreign Affairs Yamaguchi is scheduled to visit there as well from Friday, November 11 to Saturday, November 12 to attend meetings including the Ministerial Meeting on Trade to be held in parallel.
At the meeting, I am scheduled to exchange views with the participating Ministers of other economies on the themes such as disaster resilience, open governance and economic growth, support for the multilateral trading system, the reinforcement of regional economic cooperation, and the promotion of green growth, to which the United States as the Chair attaches importance, in preparation for the following Summit Meeting.
During my stay in Honolulu, I am scheduled to hold talks individually with the participating Ministers including those of the United States, the Philippines, Mexico, and Thailand to exchange views on bilateral relations and issues concerning the APEC Ministerial Meeting.

(2) Visit to Japan by H.E. Mr. Nassir Abdulaziz Al-Nasser, President of the 66th session of the United Nations General Assembly

Minister: President Al-Nasser of the 66th session of the United Nations General Assembly, will visit Japan from Saturday, November 12 to Wednesday, November 16 upon the invitation of MOFA. During his stay, he is scheduled to hold meetings with VIPs besides me. Moreover, he will go to the Kansai region during his stay to visit the Disaster Reduction and Human Renovation Institution.
President Al-Nasser has a long experience serving as Qatari Ambassador to the UN, and we hope that his visit will further deepen the cooperation between Japan and the United Nations.

(3) Response to World Cup Match between Japan and North Korea

Minister: We are sending a a group of officials to Pyongyang, North Korea, to minimize the possibility of an unexpected contingency involving the Japanese team and supporters visiting there for the Japan vs. North Korea third qualifier round for the 2014 FIFA World Cup scheduled on Tuesday, November 15, next week.
Specifically, we are making preparations to dispatch 13 officials headed by the director of Consular Affairs Bureau of MOFA to Pyongyang from Saturday, November 12 to Wednesday, November 16. The 13 members include 12 MOFA officials and an official of the Ministry of Education, Culture, Sports, Science and Technology, which has jurisdiction over the Japan Football Association.

2. Japan-China Relations

Yoshioka, NHK: I have two questions about Japan-China diplomatic relations. Some evening newspapers reported today that you would make a day trip to China on Wednesday, November 23. One of my questions is about the state of planning for visits to China by you and the Prime Minister. The other question is about a series of incidents in which Tibetan monks set themselves on fire in Sichuan and other provinces in protest against the Chinese government. Do you intend to raise this issue when you meet with the Chinese side in the future?

Minister: With regard to your first question about a visit, it is true that we are in the planning process, but we have not decided on an exact schedule. As my Chinese counterpart and I have decided to have talks with each other frequently, I am thinking of visiting China this time.
With regard to Tibet, it has been Japan's stance to regard the status of Tibet as an internal affair of China. This stance remains unchanged.

Sakai, Sankei Shimbun: I have two questions. At a meeting today of the Liberal Democratic Party’s Extraordinary Commission on National Territory, it was revealed that lawmakers from the Republic of Korea are going to hold a concert on Takeshima. I would like to ask your view and whether you have made a protest against it.
The other question is about a media report. In the latest edition of the Shukan Shincho weekly magazine, which goes on sale tomorrow, there is a story claiming that you said over drinks that if Beijing were to push for the Senkaku Islands, it would be fine for Tokyo to give them away. Did you in fact make such remarks?.

Minister: First of all, regarding Takeshima, on Tuesday, November 8, and Wednesday, November 9, we made demarches seeking the cancellation of the concert
As for the weekly magazine's report on the Senkaku Islands, as you are well aware, Japan's stance is that there is no territorial dispute over the Senkaku Islands and that they have always been Japanese sovereign territory. Needless to say, whatever the setting there’s no way I would ever say such a thing. I want to say that this is 100% untrue. Whatever else I may have said, I definitely never made such a comment, and everyone around me at that time will verify that the report was baseless.

3. TPP

Hanamura, TV Asahi: The TPP issue is reaching a critical juncture. Right when it seemed as if the senior DPJ leadership and the rest of the party had reached a consensus, it emerged that views were still splintered. Former Agriculture Minister Yamada said in the morning that there would be serious repercussions if the Prime Minister announced that Japan planned to join the negotiations. Do you think that there will be serious repercussions?

Minister: I am aware to a certain extent of the discussions going on within the party. There are certain consultations taking place now, but in any case, the final decision is to be made by the Prime Minister. We do not know what conclusion will emerge, but I think it is necessary for all the members of the DPJ to support his decision.

Ikegawa, NHK: I believe that you have been making efforts to deepen public understanding of the TPP by attending forums discussing the issue. In your opening remarks you talked about the upcoming APEC Ministerial Meeting, which is scheduled for the day after tomorrow. With that meeting around the corner, how far do you think the public has come toward understanding the TPP issue?. I think that the government has recently been making efforts in this direction, and there have been many opportunities for the public to be exposed to the issue through the discussions being held by the party, but do you think the level of understanding has deepened?

Minister: Unfortunately, looking at survey results, I think that there are many people who are still not familiar with the issue. We must take seriously those respondents who answered that they had not been provided with sufficient information. However, we are confident that we have done everything we can to organize the information we have collected in the fact-finding process and present it to the public. I have made it my own rule to share whatever information I have, down to minutiae, as straightforwardly and simply as possible without waiting to be asked for it. Various concerns have been raised at department
and project team meetings. I think this was a very good thing. As a result, I think the focal points of the debate have become very clear.
In other words, I feel as if we’re finally in a position where we can have more meaningful discussions since the key issues have been clarified.

Ikegawa, NHK: I have a follow-up question. In various forums I think you have, relatively speaking, tended to emphasize the benefits of Japan's participation in the TPP negotiations at this time. Could you reiterate what the benefits would be if Japan announced its intention to join the TPP negotiations at the APEC Ministerial Meeting?

Minister: Allow me to answer your question in general terms only. The Prime Minister will take the lead in deciding the government’s position.
To restate the benefits, let me say that it is very beneficial for Japan to participate in rulemaking with many other countries. There are those who say that a combination of bilateral free-trade agreements is enough. As you know, Japan has signed economic partnership agreements (EPAs) with a total of 13 countries starting with Singapore in 2002. But the reality is that the number of tariff lines covered by these agreements is exceptionally low, about half of the Republic of Korea’s coverage rate. We are now accelerating EPA negotiations with Australia, resuming talks with the ROK, and starting them with the EU. We are moving forward the completion date for joint research into an EPA among Japan, China, and the Republic of Korea. That research will be completed by the end of this year. This is something that came up earlier today. So we are not just considering the TPP; we are looking at it in conjunction with various bilateral EPA agreements.
The current situation is this. The WTO would normally be the best [mechanism for multilateral rulemaking]. Unfortunately, however, the WTO is stalled, and as a result we are facing the issue of how our county can take part in making rules that conform with our situation. The timing issue can be viewed in those terms. I think that’s a valid point generally speaking.
Furthermore, one cannot deny that there are issues between Japan and the U.S. that need to be addressed. We also need to develop multi-layered relationships with ASEAN and Australia. And China is a very important country, Another benefit might be to provide a chance to engage in high-level economic partnership with China.
Therefore, while I am taking the liberty of speaking in the most general of terms, I would say that the significance of joining such talks can be considered in terms of diplomacy and security as well as in terms of trade policy.
On the other hand, some concerns were raised at today's committee meeting, and I think that we need to move forward while taking a hard look at how we can address those concerns.
Should we decide to participate in the talks, I don’t think it would be in the national interest for me in my capacity as Minister for Foreign Affairs to spell out what we want to protect. The premise of the negotiations is that all items on the negotiating table, subject to the agreement of all three [sic] countries. However, I think what is important is to formulate our response while thoroughly reviewing all these considerations.

4. Nuclear Exports

Yokota, Mainichi Newspapers: I would like to ask you about projects to build nuclear power plants in other countries. I think the Noda Administration has decided to continue
negotiations which have already been started for such exports of nuclear technology. According to an opinion poll that our newspaper conducted last weekend, however, it seems that there is a gap between the government's policy and public opinion, because 65% of the respondents said they opposed nuclear exports while 31% were in favor. As expected, the public is concerned about the prospect of these projects moving forward while the accident at the Fukushima Nuclear Power Station has not been brought to a conclusion or its cause fully clarified. Please tell us your view of going ahead with these projects under the circumstances.

Minister: I think we need to look at this issue by making a broad distinction between those countries with which Japan has been negotiating for the sale of nuclear plants and those with which it has not. Japan has a relationship of trust with countries with which it has been negotiating. Furthermore, in those cases in which countries have reconfirmed their interest in buying our nuclear technology, I think it is necessary that Japan cooperate with these countries while applying the lessons of the accident. It’s critical not to compromise the relations of trust.
In the case of new projects, that is, projects on which negotiations have not yet begun, I think we need to decide on a policy after the lessons of the accident have been formally and thoroughly ascertained. .

Yokota, Mainichi Newspapers: When you took part the other day in an online discussion on the subject of the TPP, you mentioned that you instructed MOFA to promote exports of environmental technology rather than focusing on sales of nuclear power plants. Does this mean you instructed officials to limit sales of nuclear power plants to those countries with which Japan is currently negotiating as part of a future shift toward exporting environmental technology?

Minister: I cannot say anything definitive at this moment. Regarding our policy on exports of nuclear technology to countries with which Japan has not previously negotiated such projects, all stakeholders must discuss the matter thoroughly while taking a hard look at the lessons of the accident. Having not the public join those stakeholders in a national debate to decide the matter is another idea. Meanwhile, we should develop environmental technologies including those related to renewable energy, in particular, and achieve breakthroughs in batteries and the reduction transmission losses in the power grid, as I have said time and time again. I believe that Japan will make progress in those fields and has already achieved a certain level of technology. It is true that I urged MOFA officials to be more aware of the importance of promoting the sales of such technologies rather than the sales of nuclear power plants and make the necessary arrangements in coordination with the Ministry of Economy, Trade and Industry

Oshima, Asahi Shimbun: The other day I visited communities including Koshijicho and Funabiki in the city of Tamura [in disaster-hit Fukushima Prefecture]. I spoke to some people who told me that their values and outlook on life changed [after the disaster]. You also stated in the online forum that your own values and outlook on life had changed. I would like to ask you two questions. The first is how your values and outlook on life changed. The other question is related to something you mentioned at your the press conference here on the day you took office. While saying that your fundamental stance would be one of continuity with the policies you inherited, you added that you did not necessarily take a positive view of nuclear power plant exports. What is your current thinking on the subject?

Minister: When I spoke of the change in my values and outlook on life, I was referring to several things. I never felt more clearly that a tranquil life is truly the source of happiness. The disaster brought me to that realization. I feel that it may have an influence on my way of thinking in different ways in the future.
As you pointed out, I remember answering at my first press conference that I could not necessarily take a positive view of exports of nuclear technology. As I said earlier here today, I think that we should rethink whether or not to accept new orders for such plants from other countries. But I believe that Japan's comparative advantage lies elsewhere. I think Japan is strong in many other fields. As I always say, I think that the essence of a strategy becomes obvious when a situation is turned upside down. It must be encoded in our DNA, but for a variety of reasons we Japanese excel in fields including the miniaturization of technology. Given that comparative advantage, I think that it is time for us to develop so-called environment-related technologies. In order to achieve that, and I have said this before, Japan needs to rethink policies including its approach to investments in research and development. Therefore, in response to Mr. Yoshioka's question the other day about Japan's future plans for nuclear power, I replied that those plans would depend on the pace of technological innovation. The focal point is a revolution in batteries and improvements in power grids to reduce transmission losses. Currently, transmission losses in Japan are equivalent to the total capacity of six nuclear power plants. We should think of catalysts as well. How much progress we can make in developing such technologies, and lighter materials as well, will I think affect Japan's dependency on nuclear power, or how much power Japan must rely on nuclear power plants to provide.
When we consider the state of economy, however, I think have to take a realistic view of these issues. All told, I think these are the considerations we need to keep in mind while taking resolute steps to deal with the issue.

5. Measures Related to World Cup Match between Japan and North Korea

Matsumura, Asahi Shimbun: I have a question about the plan to send a team of officials to North Korea which you announced at the outset of the press conference. Specifically, Japan has no diplomatic relations with North Korea, and of course there are various issues pending between the two countries. At least 100 people are going to be visiting, and I wonder what specific arrangements are being made on the ground in case of a contingency. For example, I think you’ll have to work out communications issues, put together measures in case a visitor is a victim of crime, and set up a base of operations. What concrete plans do you have?

Minister: We are now focusing on those details including, for example, what measures should be taken in case a visitor loses a passport. As a matter of course, these officials will be sent after all these matters have been given thorough consideration.

Ogawa, Yomiuri Shimbun: Is there any chance that the officials will come into contact with North Korean authorities in Pyongyang? In that regard, I would like to ask you about the dispatch of officials and Japan’s basic stance on negotiations with the DPRK. If there is contact between the officials and North Korean authorities, how will that be handled, and what instructions have you given to the officials about this matter?

Minister: I said earlier that 13 officials would be sent. Basically, we selected personnel familiar with crisis management, the protection of Japanese citizens overseas, and related matters. As you know, Japan has imposed various sanctions against North Korea. If you read the relevant provisions closely, you will note that these sanctions are to be imposed "in principle." I think that cases like this one should be regarded as exceptional given the need to protect Japanese citizens overseas. If you view this case from that perspective, I think that you will understand most of these other matters.

6. Other (Hidden Losses by Japanese Company)

Nanao, Nico Nico Douga: The FBI and the British SFO are investigating the allegations of hidden losses by Olympus. Meanwhile, there has been criticism that the Japanese authorities have been slow to respond. I have one more question. We’ve been hearing from the international community including Europe and the United States that this problem goes beyond Olympus and has implications for Japanese companies in general. What’s your view?

Minister: I am not sure if I am the right person to answer your question. Fundamentally, I think that the Minister of State for Financial Services should answer the question. If there has been a violation of laws, such as Financial Instruments and Exchange Act, in particular, the Securities and Exchange Surveillance Commission will investigate.
Frankly speaking, if it is true and Olympus has broken the law, then I could not stand here and say I was not concerned about how the case would be perceived in Europe and the United States.
I think it is very important for corporate governance to ensure fairness and transparency.

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