PROVISIONAL TRANSLATION

International Conference on The Future of Asia Hosted by the Nihon Keizai Shimbun
Welcome Speech by Prime Minister Keizo Obuchi at the Banquet

June 3, 1999

Distinguished Guests, ladies and gentlemen.

I would like at the outset to extend my heartfelt congratulations to the Nihon Keizai Shimbun for successfully hosting the fifth International Conference on the Future of Asia and to express my sincere gratitude for being invited to attend the banquet of this important conference and provided with the opportunity to speak to you all. I would also like to take the opportunity to extend my warmest welcome to all the leaders from government and business circles, who have come to Japan from respective countries to attend the conference.

I must offer my apologies that due to prior commitments in my schedule, unfortunately, I have not been able to listen to today's fruitful discussions at this meaningful conference, and will not be able to attend tomorrow's discussions either. This conference, which is now in its fifth year, serves as an extremely important forum for sending Asia's message to the world. I cannot wait to hear what kind of message will be transmitted in regard to the sub-theme of the conference, "Beyond the Economic Crisis."

In the limited amount of time that I have been allocated to make my welcome speech, ten minutes or so, I will not be able to cover everything I would like to speak about, so instead I would like to focus on a few points and share with you my thoughts and ideas on the future of Asia.

Let me first refer briefly to the Asian economy.

Our Asian economy had developed at a pace envied by the rest of the world, in such a way that it could be described as the Asian Express, but for the past two years the train has been in a long, dark tunnel. The Asian financial markets, however, are beginning to recover their stability, and although the real economy remains severe, we are seeing signs of recovery. This is a very encouraging move, as if we are seeing glimmering lights at the end of a long, dark tunnel. In each of our countries, however, we must continue to persistently and dynamically implement our various efforts toward reform. I believe that we must humbly and sincerely learn from the lessons of the economic and currency crisis that we have suffered from, improve what needs to be improved and ensure that we do not neglect our efforts toward future objectives.

I have always believed that it is vital that we gain an accurate understanding of the current situation of the Asian economy and gather our wisdom to figure out what we should do to achieve a brighter future for the Asian economy.

To this end, I have asked Mr. Hiroshi Okuda, President of Toyota Motor Corporation who recently assumed the post of Chairman of the Japan Federation of Employers' Association (Nikkeiren), to head the Mission for Revitalization of the Asian Economy, comprised of eminent persons who occupy leading positions in the economic and academic circles. The Mission will visit six countries-the Republic of Korea, the Socialist Republic of Vietnam, the Republic of Indonesia, Malaysia, the Kingdom of Thailand and the Republic of the Philippines-between the end of August and the beginning of September. In October 1998, Mr. Takashi Imai, Chairman of the Federation of Economic Organizations (Keidanren), who is present here today, took an initiative to head a Keidanren mission which visited Asian countries. It is my hope that the Mission headed by Mr. Okuda will also be able to formulate some specific recommendations based on its results.

I have, on various occasions, expressed my belief that we should be aware of the great responsibility of the Japanese economy and make every possible effort to ensure that Japan itself recovers its health, so that the Asian economy will not catch pneumonia even if Japan catches a cold.

Since assuming the office of Prime Minister, I have boldly implemented every possible measure to bring the Japanese economy back to its recovery track. Supported by the effects of such measures, the economy is about to hit the bottom. Furthermore, Japanese industry, which had been enveloped in a stagnant mood until last year, is now turning to a positive, future-oriented attitude. I will be formulating specific government measures on 11 June to tackle one of our present concerns, namely employment instability, and to reinforce industrial competitiveness. Japan's current objective is for industry, academia and government to gather together their wisdom, and to formulate guidelines which can serve as national economic strategy toward the 21st century.

It is my intention to work with indomitable resolve to securely bring about the revitalization of the Japanese economy, by overcoming any problems that may arise.

I would like us to work together to ensure that the day will soon come when the Asian Express reaches the end of the tunnel and once again runs off at top speed.

Ladies and gentlemen,

In order for the future of Asia to be a bright one, it is of the utmost importance that we develop a peaceful and stable political environment. However, looking across this region in which we live, it is regrettable to point out that there remain elements of instability and uncertainty.

For example, if we take a look at Northeast Asia, we have certainly not reached a situation in which it could be stated with confidence or peace of mind that real peace and stability currently prevail. I do not have the available time to go into detail about specific issues, but, in terms of policy toward North Korea for example, Japan, working with the United States and the Republic of Korea under the basic policy of addressing the issue by striking an appropriate balance between deterrence and dialogue on the basis of a comprehensive and integrated approach, has sent a message to the North Korean side through Dr. William Perry, North Korea Policy Coordinator for the United States, who recently visited North Korea. The Government of Japan will steadfastly continue to urge the North Korean side to open the door to dialogue.

The political stability and economic development of the Republic of Indonesia, the largest Member State of ASEAN, are of vital importance to the prosperity of Asia. This is why the general elections to be held on 7 June are being closely watched because of their extreme significance. It is the strong hope of the Government of Japan that the general elections in the Republic of Indonesia will be smoothly conducted in an open and fair manner, and to this end Japan will be cooperating as much as possible from both financial and human resource aspects. I told this to Minister of Foreign Affairs Ali Alatas of the Republic of Indonesia, who is with us here this evening, when I met with him yesterday.

Ladies and gentlemen,

If I had more time, I would go into greater detail on many other important topics. When I think of Asia in the coming 21st century, I believe that it is of utmost importance to achieve political stability and economic development as we secure respect for human dignity in each of our countries, by paying ample respect to the diverse backgrounds of Asian countries, for example differences in ethnicity, history, political systems, culture, society and economic development and by maintaining close dialogue and cooperation. I firmly believe that this will bring about a century of peace of prosperity in Asia for the first time.

For Asia to be bright and brimming with confidence in the future, Japan itself must also shine forth and project confidence. Since assuming responsibility for Japan's national policies last July, I have made efforts to formulate and implement all kinds of measures as speedily as possible, hoping that the people of Japan, who seemed to be losing their self-confidence during the continuing economic difficulties, could in some way recover their vitality. Fortunately, I have gradually been receiving a favorable response from the Japanese people. It is my intention, maintaining political stability, to continue my unwavering efforts to realize an upturn in the economy.

Finally, I would like to remind you of what I spoke about in an address I delivered as Minister for Foreign Affairs in Singapore in May last year.

At that time, I advocated the Obuchi version of the essential Five Cs, and called on everyone to work together always bearing them in mind. These Five Cs are Courage, Creativity, Compassion, Cooperation and Confidence. More than a year has passed since then, and I have come to realize more and more the need for Asian countries to cooperate even more closely with each other and to more powerfully advance reforms.

I would like to add two more Cs to the existing five, namely Commitment and Continuity. Seven being a lucky number, I would here like to newly propose the Obuchi Seven Cs. I, otherwise known as Mr. Optimism, would like to end my remarks by once again calling on you all to focus on the Seven Cs as we build a bright future for Asia.

Thank you for your kind attention.