Appendix
1. Speeches by the Prime Minister and the Foreign Minister at the National Diet
(1) Policy Speech by Prime Minister Toshiki Kaifu to the 116th Session of the National Diet
(October 2, 1989)
Having been designated Prime Minister at the previous Session of the National Diet, I am pleased to address this 116th Session of the Diet. Looking ahead to the challenges of the 21st century and acutely aware of the gravity of my mission in opening the door to the new era, I am resolved to deal with the national policy issues before us with determination and energy.
I would like first to touch upon three issues.
The first is the relation between politics and the people. I humbly acknowledge the will of the voters as expressed in the House of Councillors election this July. The restoration of trust in politics is this Cabinet's most important task. I am thus determined to continue to make a good-faith effort to move ahead on political reform.
Second is about Japan and the world. The international situation is extremely fluid, and expectations of Japan and criticism of Japan both loom large. I thus intend to pursue a foreign policy of toiling for world peace and prosperity through examining anew the questions of what Japan can and should do for a better world and adopting the appropriate measures.
And third is the very profound issue of Japan and the Japanese. Japan has come to be regarded as one of the wealthiest of nations. Yet do we Japanese have an inner sense of fulfillment, and can we bequeath today's Japan to future generations with confidence? This is a time to pause and consider - a time to work in humble pursuit of a fair and spiritually rich society. Dedicated to the politics of dialogue and reform, I intend to devote my every effort to grappling with these urgent and wide-ranging issues.
It should be noted that I believe the results of the closely watched by-election yesterday in Ibaraki to fill a vacancy in the House of Councillors vindicate our policies of reforming politics and reviewing the consumption tax. I very much hope that it will now be possible to discuss this consumption tax dispassionately.
I fully intend to continue listening to the people and dealing diligently with the issues before us.
Restoring Trust in Politics
I would like to talk first about restoring trust in politics.
Humbly aware that the political process has become convoluted and the link between politics and the will of the people tenuous, I intend to return to the founding principles of democracy and to make politics open to the people and easy to understand, I intend to listen as much as possible to what the people are thinking and feeling in their everyday lives. Likewise, I intend to state my beliefs frankly and to engage in continuing dialogue. My political ideal is that of politics infused with a sense of freshness.
Along with the obvious need to have each and every politician observe high standards of political ethics, we must determinedly implement reforms premised upon returning to the fundamentals of political activities that are transparent and inexpensive and an election system that focuses upon policies. This administration has asked the Election System Council to draw up specific recommendations for fundamental reforms in such areas as the election system, including the apportionment of seats, and political funding, and I am asking them to do their best to put a set of recommendations together by next March. Once of these recommendations are in, I hope to gain the understanding and cooperation of all parties and intend to try to implement reforms fully respecting the spirit of the recommendations by next November's centennial of the Diet's establishment.
Bills were submitted to the last Session of the Diet by the Liberal Democratic Party to amend the Public Office Election Law and the Political Contribution Control Act and by the Japan Socialist Party and two other parties to amend the Public Office Election Law and all parties are hard at work drafting legislation to establish political morality, including rules for asset disclosure. With the utmost respect for these efforts by the legislative branch, I very much hope that these deliberations will proceed on the highest plane as the first step toward political reform. This administration also intends to do everything it can.
I will also work to have all civil service personnel without exception adhere to the highest standards of propriety and to establish an upright and principled administration that leaves not the slightest room for public suspicion.
Reviewing the Consumption Tax
Looking ahead to the older Japan to come, the recent sweeping tax reforms were intended to have all of the people share equitably in bearing the costs common to society as well as to eliminate the sense of being overly and unfairly taxed that comes from having the tax system skewed toward salary income. I am confident that the stable tax structure established as a result of these reforms lays the foundations for enabling the people to live anxiety-free lives in the welfare state of the future. The consumption tax is absolutely indispensable in light of the need to equalize the tax burden and to meet Japan's future needs. I have no plans to abolish it.
I frankly admit that our efforts to gain popular understanding of the significance of this tax reform and the need for the consumption tax have been inadequate. Once we see how the consumption tax actually works in practice, I would like to listen to the people and, with all due heed to consumer interests, to move ahead forcefully with any necessary reforms. At the same time, I intend to implement measures carefully tailored for the socially disadvantaged.
I should add that my Cabinet does not intend to propose any increase in the consumption tax rate.
Administrative and Fiscal Reform
Administrative and fiscal reform is essential to firming up the foundations for the coming century. I will make every effort in the budget for fiscal 1990 to draw up fiscal policies that are not dependent upon the issuance of deficit-financing national bonds. Even if this can be done however it should be remembered that we will still have a total of \160 trillion in national debt outstanding, with the interest payments alone amounting to \30 billion a day.
In line with the deliberations of the Provisional Council for the Promotion of Administrative Reform, I am determined anew to reform our institutions and expenditures and to unrelentingly promote the theme of fiscal and administrative reform at both the national and local government level.
Agricultural Policy
Thinking back on Japan's development to date, it is impossible to forget the contribution made by agriculture in tiding the people over our postwar food shortages and sustaining us since then.
Agricultural policy today needs to work on formulating a firm long-term vision for agriculture to stand on its own feet and on creating a climate in which farmers can manage their farms with pride and hope. The creation of such a climate is, I believe, prerequisite to further improving agricultural productivity and enabling farmers to provide stable food supplies at prices acceptable to the people.
With regard to rice, which forms the basis of Japanese agriculture, in view of the special importance of rice and rice-farming and inline with the spirit of the resolutions adopted in the House of Representatives and House of Councillors, I intend to deal with this with our basic policy that of self-sufficiency from domestic production. Also, recognizing the multifaceted role of farming, forestry, and fishing, I intend to work to revitalize these communities.
Japan Contributing to a Better World
The world is in the midst of major changes. There are especially noteworthy changes taking place in the socialist countries, including perestroika, democratization, and the policies of reform and openness. East-West dialogue is all the more needed to consolidate these developments and to build more stable East-West relations. While the world economy is fundamentally doing well, it does face such problems as the external imbalances, concerns about inflation, and protectionist pressures. Although this situation demonstrates the superiority of the value that we have opted for - the values of freedom and democracy and the market economy - it also means that the international community has to come to grips with a host of new issues. Japan has become a major actor within the international community, and I believe it is incumbent upon us to clearly delineate the path we intend to follow as a responsible member of the international community.
Basically, this is the path of dedicating ourselves to peace and toiling mightily in the cause of international peace and prosperity. Under our Constitution, Japan will not become a military power such as might threaten other countries, is working to develop a moderate defense capability, and is taking the initiative in contributing to attaining the noble aims of international peace and disarmament and world prosperity.
I intend to work even more vigorously for the implementation of the International Cooperation Initiative to fulfill our greater responsibilities and to play a greater role in the world, and I will flesh out and promote the Initiative's three pillars of cooperating for peace, enhancing our official development assistance (ODA), and strengthening international cultural exchanges. In addition, I will also make a positive contribution to the resolution of the debt problem and to the success of the Uruguay Round to preserve and strengthen the multilateral and free trade system.
The road to the future is today barred by major problems that threaten the very survival of the human race. The first of these is the global environment, including the global warming, and the second is the problem of drugs and stimulants that eat away at people's souls. Strengthening our cooperation with the other countries working for solutions to these problems, I am firmly resolved to join the fight against these threats.
The environmental problem is best understood if we think of the globe as a single sphere. The air and the water know no national borders. It is thus extremely important to bring together the collective wisdom of all mankind to solve the environmental problem. While the carbon dioxide gases that cause the global warming and the acid rains that destroy our forests have arisen with the development of today's materialistic civilization, mankind has no future unless that future includes environmental protection. Japan is in the forefront in environmental monitoring, emission regulations, and pollution-prevention technologies, and I intend to mobilize our expertise, experience, and research and development capabilities to contribute to the explication and solution of these global issues and to promote cooperation with the developing countries. This administration will make a strong effort in this area building upon the success of the September Tokyo Conference on the Global Environment and Human Response toward Sustainable Development.
Leaving in late August, I visited the United States, Mexico, and Canada and had very fruitful talks with President Bush President Salinas and Prime Minister Mulroney, and I have also met with British Prime Minister Thatcher and other dignitaries when they were here. Part of my effort to meet world leaders and to establish strong bonds of mutual respect with them, these meetings have given me anew awareness of the international community's great expectations of Japan and the major role that Japan should play, as well as renewed determination for the future.
Relations with the United States are the cornerstone of Japanese foreign policy. Japan and the United States share the ideals of freedom, democracy, and market economies, and this has been a major factor underlying Japan's current peace and prosperity. During my visit to the United States, we agreed on firmly maintaining the bilateral security arrangements and continuing to cooperate to solve our bilateral problems, as well as on joining together to deal with global issues. I intend to approach the structural problems in the Japanese and American economies through vigorous negotiations, speaking out frankly, saying what needs to be said, and listening to the American position.
Western Europe on the eve of integration is forging a second renaissance as a stronger single entity. It is important that Japan work to make the trilateral relations among Japan, the United States, and Europe even closer and stronger.
The Asia-Pacific region is the region of the 21st century. The recent events in China were extremely regrettable. I very much hope that China will promote the policies of reform and openness in deed as well as word and, avoiding the path of isolation, will contribute positively to peace and prosperity in the Asia-Pacific region. It has also become more important that we further strengthen our relations with the Republic of Korea and the ASEAN countries.
I intend to promote further dialogue with the Soviet Union for the improvement of our bilateral relations in line with the consistent policy of establishing stable relations based upon the resolution of the Northern Territories issue and the conclusion of a peace treaty.
People today are not satisfied with mere economic wealth but seek a sense of fulfillment, cultural richness, and purpose in life. Accordingly, we must work to right and rectify the distortions that economic development has manifested in some aspects of society and to convert to systems and institutions that will result in a society in which people can feel truly well off. I intend to move steadily forward toward the goal of creating a fair and spiritually rich society.
A Fair Society
The extraordinary rise in land prices has been a factor shaking the people's faith in society's fairness. It is impossible to ignore the widening disparity between the haves and the have nots. This rise inland prices has robbed the people of their dream of home ownership. We need to launch effective land policies from both the supply side and the demand side in a determined effort not only to stem speculative trading but also to disallow exorbitant profits from land trading. As a first step, this administration has submitted a basic land bill to the Diet defining the framework for land policy in the belief that land is an invaluable and finite resource for the benefit of all the people, and I very much hope that it will be promptly enacted. We are also hard at work on comprehensive housing and land policies to provide comfortable housing.
Rectifying the overconcentration on Tokyo and revitalizing our communities are the keys to balanced national development. As well as seeking to create a multipolar and decentralized nation, I will promote furusato-creation and work to create communities attractive to young people and beautiful towns rich in caring.
Inflation strikes hardest at the elderly, the handicapped, and society's other disadvantaged members. Happily, prices have been stable and I intend to continue to do everything possible to see that they stay that way.
All of the people are also consumers. It is thus important to take consumer interests into account in the drafting and implementing of all of our policies. If there are factors preventing consumers from enjoying the comforts commensurate with Japan's economic development, we will eliminate them. Along with promoting competition through deregulation and other means, I will also work to create rational distribution structures and to reduce the disparities between domestic and international prices.
I will also work to reduce the external imbalances by consolidating our domestic-demand-led economic structure and making Japan a major importing nation.
A Spiritually Rich Society
The truly rich society blossoms only when there is spiritual richness. I am most concerned that there have been a number of vicious incidents, especially incidents involving young people such as the recent kidnapping and killing of little girls, that have shaken society to its roots. I fear that we are losing a very important part of ourselves. Accordingly, I want to return to the basics of education and reform education to raise people firmly imbued with respect for other people.
Well has it been said that parents are the first teachers anyone has. The ability to say such simple things as "Good morning," "Thank you," and "I'm sorry" naturally is extremely important as the basis for interpersonal relations and the creation of a spiritually rich society .The home is the primary educational experience.
In the school, it is important to be careful not to overemphasize intellectual learning and instead to seek to develop the individual's personality and creativity and to promote education contributing to a climate of respect for the individual. And the results of this education must be carried over into society and passed along to posterity.
I also intend to make an effort to create a climate and to establish the foundations enabling all of the people to feel an affinity for culture, arts, and sports and to take a personal hand in the vigorous creation of culture.
I have long striven for true equality between the sexes and sought to promote balanced social development drawing upon women's capabilities and experiences. Continuing to value the woman's perspective on life and to help women achieve improved status, I will do every-thing I can to enable women to use their abilities to the fullest and to join together with men in contributing to society.
It is imperative that the institutional arrangements for public pension funding underwriting our lengthening post-retirement lives be firm. Along with working to reform pension levels, we have submitted legislation to, among other things, clearly set the age of eligibility for employees' pension payments and coordinate premiums for people enrolled in the different systems, and I very much hope that this legislation will be promptly enacted.
For elderly people needing special care, we are doing our best to keep them from becoming bedridden and are working for the creation of a society in which they can lead fuller lives and be as much a part of the family and the community as possible.
I am also working to create a climate in which those young people who will be the mainstays of our aged society can be born in safety and grow up in health.
It is extremely important for the society of the future that all individuals feel that their lives are worthwhile and be able to exercise their talents and creativity to the fullest for all of their years. Working to for closer dialogue with labor and management, I will seek, for example, to ensure continuing employment until about the age of 65, to provide diverse educational opportunities, and to tackle the issue of shorter working hours.
I am also promoting science and technology in light of their importance in opening our future horizons.
Conclusion
Arising from the rubble of war, Japan has come to be regarded as one of the richest of countries. This must be attributed to the tremendous efforts that all of the people have made in line with our basic philosophy of freedom and peace, of democracy and respect for human rights. I believe we are now at the point in history when, adhering firmly to this fundamental policy path, we must seriously pursue fairness and spiritual richness.
We must seek to build a society in which each and every person has the opportunity to contribute what he or she can and everyone plays a vital role with mutual respect for each other and no place for narrow-minded egocentrism, a society that does not concentrate single-mindedly on economic efficiency but is replete with comfort and culture, and hence a society in which people care about each other and feel a sense of personal worth.
I thus hope to move soon to establish the Committee on Japanese Society in the 21st Century in the hope of bringing together social ideals and policy ideas from all walks of life and giving birth to a broad and sustained national movement.
It is always the sense of mission and enthusiasm of young people that heralds the dawning of the new era. The times once again need the idealism of youth. The times need the kind of devoted hearts and hands seen in the Japan Overseas Cooperation Volunteers living and working overseas as they dedicate themselves to progress in the developing countries and in the many volunteers who are active throughout Japanese society. There is no limit to Japan's potential if these young people think and talk about what they can do to open new horizons in our tumultuous society and then translate these ideals into action inquest of these lofty goals.
I hereby pledge to do everything I possibly can to create that kind of a country.
In all of this, I earnestly ask for the understanding and cooperation of my fellow Diet members and all of the people.
(2) Policy Speech by Prime Minister Toshiki Kaifu to the 118th Session of the National Diet
(March 2, 1990)
Following the solemn judgment in the general election, I have again been selected as Prime Minister and charged with the task of guiding government policy. Although somewhat awed at the accumulation of problems we face in Japan and overseas, I am determined to forthrightly accept the results of the election and to make every effort to forge a national consensus. In this, I earnestly ask for your cooperation.
The world is today undergoing historic changes. And the most dramatic changes are taking place in the Soviet Union and Eastern Europe. As symbolized by the demolition of the Berlin Wall, the oppression of liberty and the inefficiencies of the socialist centrally controlled economies are giving way to a rising crescendo demanding freedom, democracy, and market economies. Although there is some anxiety about this turbulent change, I still remember well the Polish and Hungarian Prime Ministers telling me that there is no turning back, no matter how difficult their reforms.
The Malta Summit between President Bush and President Gorbachev was profoundly symbolic for world peace and stability. These moves in search of a new world order transcending the East-West power confrontation and the Cold War approach and based instead upon dialogue and cooperation must not be confined to Europe alone but must spread in a chain reaction to the Asia-Pacific region. When power confrontation ruled the world order, Japan was unable to make a contribution through force; but now that moves have begun to create anew world order of peaceful coexistence based upon dialogue and cooperation, Japan has a positive role to play.
I am pleased to report to you that, with my recent trip to Europe, the cooperative relations between Japan and the Euro-American countries have become stronger still, that our friendly relations with the countries of Eastern Europe have entered a new stage, and that my discussions with the leaders of these countries were highly significant. In addition, there was a proposal from President Bush last week that, following up on last year's meeting, he would like to have another meeting soon with no fixed agenda but to discuss the international situation and our bilateral relationship in general. With the permission of the Diet, I would like to go to the United States and engage in a candid exchange of views soon.
The world economic order is also at an important watershed. The rising pressures of protectionism today threaten the very survival of the free trade system that has sustained our postwar prosperity. At the same time, economic globalization is proceeding at a rapid pace and the world in which we live is increasingly being perceived as a single community. This is truly an age of globalization.
Looking closer to home, Japanese society is also entering an era of major change. There are a number of important alterations underway that will reshape the basic structure of our society, including the rapid aging of the population, the declining birthrate, the difficulty of finding successors in farming, foresting, and fishing, the shortage of workers for small businesses, and the growing social participation by women; and it is imperative that we respond appropriately to these changes. Despite the sustained economic growth, many people have indicated that they do not feel personally better off. In the major urban areas, land prices are unusually high and there are great difficulties finding housing. It has also been pointed out that there are a number of problems, including the lack of purpose and fragile interpersonal relations, afflicting mainly those young people who will be the leaders of the future.
Given the situation in Japan and overseas, I intend to develop and deploy policies in line with the following approaches.
First, Japan will mobilize its economic strength, technological prowess, and experience to take a positive part in international efforts to create a new world order.
Second, we will seek to create a society which is fair and spiritually rich. Especially urgent issues here are those of enhancing welfare provisions for the aged society, solving the land and housing problems, and rectifying the disparity between Japanese and international prices.
Third, we will promote political reform and reestablish trust in politics. Along with establishing political ethics drawing upon the lessons of the Recruit incident, I will make every effort to effect meaningful political reform including downgrading the importance of money in politics and upgrading the importance of policy debate in elections. I have the utmost regard for the reforms that the previous Session of the Diet effected in the Public Office Election Law, and I believe this was the first step in the Heisei political reforms. At present, the Election System Council is ambitiously deliberating specific policies for far-reaching reforms, including the apportionment of seats and other aspects of the election system and the regulations governing political funding. This year a milestone year, marking as it does the centennial of the Diet's establishment, I intend to have the Council report this year and then to work untiringly for reforms respecting the Council's recommendations. I very much hope that all parties will continue to give me their understanding and cooperation in this effort for political reform.
This November the Ceremonies of the Accession to the Throne and the Daijosai, or Rite of Offering of New Rice after the Enthronement Ceremony, will be held marking the accession of the new Emperor, the symbol of the state and of the unity of the people. Every preparation is going forth on the Ceremonies of the Accession to the Throne so that the Japanese people can extend their felicitations and guests from overseas their congratulations smoothly. At the same time, the necessary arrangements are being made so that the Daijosai can be conducted with the dignity befitting the traditions of the Imperial House.
Foreign Policy
International relations are undergoing major changes in both the political realm and the economic realm. It is truly noteworthy that the countries of Eastern Europe are moving faster than expected to institute freedom, democracy, and market? economies and even the Soviet Union is moving to dismantle the dictatorship of the Communist Party and adopt market economies, and that East and West Germany have begun to move toward unification. And it is most welcome that the relationship between the United States and the Soviet Union is being changed to one of cooperation and that progress is evident in the East-West arms control and disarmament negotiations.
Looking at the Asia-Pacific region, while this region has demonstrated astonishing economic development, there are still uncertain-ties. Elsewhere, some of the regional conflicts seem to be heading toward resolution, but it is impossible to say that there is enhanced political stability overall.
The world economy is also in a time of structural transformation. With the rapid advances in the information field and in science and technology and the greater global interdependence, there have on the one hand been dynamic changes such as Japan and the EC's enhanced economic presence, the progress by the Asian NIEs, and the moves toward EC integration, but on the other hand there are also a considerable number of factors portending heightened instability, including the rise of protectionism and the developing countries' massive indebtedness.
Looking ahead from this perspective, even though the 1990s is the start of a new age, the blueprint for progress is yet incomplete and this is an era of both hope and anxiety intermixed. It is precisely at such a time that it is important that Japan take part in the building of an international order conducive to the creation of an international community full of hope and embark upon what might be called "a foreign policy of aspirations."
This new international order that we seek must be one that strives,
first to ensure peace and security;
second, to respect freedom and democracy;
third, to guarantee world prosperity through open market economies;
fourth, to preserve an environment in which all people can lead rewarding lives; and
fifth, to create stable interntional relations founded upon dialogue and cooperation.
In seeking to build this new international order, firm relations of cooperation between Japan and the United States must be the foundation. The cooperative relations between Japan and the United States are indispensable not only to Japan's peace and prosperity but also to the stability of international relations in the Asia-Pacific region and hence the entire world. It goes without saying that we will continue to firmly maintain the security arrangements that underlie these cooperative relations.
The solution of the trade and economic issues between Japan and the United States is one of the main policy issues facing Japan today, and the Structural Impediments Initiative is an urgent and important issue. These SII talks are intended to improve the Japanese standard of living and to strengthen America's competitiveness, and they are thus directly linked to strengthening the foundations for our bilateral cooperative relationship, I intend to make every possible effort for progress in these talks. At the same time, I will promote even-better Japan-U.S. relations through joint action to deal with the diversity of shared problems that the entire world faces.
The maintenance and strengthening of the multilateral free-trade system is one of the important issues confronting the world economy today. It goes without saying that the world's economic development owes much to the free-trade system. We must never forget that protectionism, even if it does provide temporary respite, ultimately weakens the protectionist country's economic infrastructure and thus creates even greater problems than it solves. Realizing this, it is imperative that we do everything possible to bring the Uruguay Round of multilateral trade talks to a successful conclusion by their end-of-the-year deadline, as it is that we firmly maintain economic management for domestic-demand-led growth as well as improving market access, adopting taxation incentives to promote manufactured imports, and making other like efforts so as to further reduce the external imbalances and effect the shift to an internationally harmonious economic structure. This administration also intends to firmly promote policies designed to expand imports from the perspective of improving the Japanese standard of living and focusing on consumer interests. I very much hope that all of the people and all companies will continue to work in this direction.
Ensuring political stability and economic development in the Asia-Pacific region is an extremely important issue for Japan. This region is growing much faster than the world economy overall, and it is expected to be an increasingly important presence in the world of the twenty-first century. At the same time, Japanese investment in and trade with this region is increasing year by year to contribute importantly to this region's economic development and to greatly strengthen Japan's ties with this region. Nonetheless, there are still a number of unpredictable areas in the region, including the Korean Peninsula with its continuing military stand-off between North and South, Cambodia where fighting continues, and a China that has yet to repair its relations with the Western countries. Moreover, many of the countries of the region are still in the developing stage and need increased assistance and more investment and trade. As an Asian country, Japan will continue to work for the peace and prosperity of the region, including the gelling regional economic cooperation, and to further strengthen its relations with the ASEAN countries and the other Asia-Pacific countries. At the same time we will continue to work for improved relations with North Korea, including the holding of dialogue.
On our relations with the Soviet Union, it is Japan's policy to achieve development of the overall relationship between our two countries in a balanced manner in line with the basic policy of establishing stable relations through resolving the Northern Territories issue and concluding a peace treaty. With the recent structural changes in the international community, normalization of the Japan-USSR relation-ship is now more important than ever. Looking ahead to President Gorbachev's visit next year, I hope that the two sides will further develop their dialogue and work for a radical improvement in the bilateral relationship.
In Europe, there is major momentum for the creation of a new order bridging the rift between East and West. Developing closer political, economic, and cultural relations with the European countries, I intend to work to strengthen the trilateral relationship among Japan, the United States, and Europe, with Japan-Europe relations one important side of this triangle.
Having developed as much as it has blessed with the help of the international community, Japan is now in a position to contribute through international cooperation to world peace and prosperity. The International Cooperation Initiative is achieving good results around its three pillars of cooperating for peace, enhancing ODA, and strengthening international cultural exchanges, and we intend to further promote this Initiative. At the same time, strengthening our efforts in such areas as the global environment, drugs, terrorism, and population growth and strengthening our scientific and technical co-operation, we intend to promote international cooperation from the global perspective.
Looking particularly at the preservation of the global environment, along with contributing to the creation of international frame-works, enhancing cooperation with the developing countries in the environmental sphere, improving monitoring and surveillance of the global environment, and strengthening research and technological developments, we also intend to develop a spirit of husbanding re-sources and loving nature in what might be called the environmental ethic, to promote steadfast efforts for environmental protection, and to bring the global efforts to deal with these issues to fruition.
The choices for Japan in the international community given these times and this international situation may be briefly summarized as follows.
First that Japan must not become such as would threaten any other country militarily. In line with this policy, Japan, while firmly maintaining the security arrangements with the United States, maintaining an exclusively defensive posture, adhering to the three non-nuclear principles and the principle of civilian control, is working to develop a moderate defense capability and is continuing to promote diplomatic efforts in support of that arms control and disarmament for which international momentum is building.
Consistent with this basic policy, we intend to take the international initiative in constructive efforts to build a richer and brighter future for all humankind and all the world by putting our economic strength, technical prowess, and experience effectively to use in the service of globally important projects as well as to peacefully resolve economic-centered discord through dialogue and mutual efforts.
I am proud to proclaim this stance anew to the world as the resolution of Heisei Japan.
Affluent Lives
I have heard criticism that the Japanese people do not lead fulfilling lives-that we study too hard as children, work too hard as adults, and have too much time on our hands after retirement. I would like to create a climate in which each and every Japanese feels more affluent, including having the ability to freely select the most comfort-able lifestyle at each stage of life, enjoying good health and affluence in their old age, and ensuring that the burden of child-rearing and care for the sick does not fall unduly on women. Accordingly, I am promoting a new life-planning project around the slogan of "vigorous lives, happy lives" and, as the first stage in this, have drawn up a Gold Plan decade-long strategy for improving health and welfare care for the aged to explicate the goals that we should be aiming at achieving by the end of the century. I will forcefully promote policies to minimize the number of bedridden old people, to urgently improve the arrangements for at-home care, to sharply improve health and welfare facilities, and to establish a welfare foundation for improved at-home care among other things. I will also implement policies carefully tailored to the needs of the handicapped and single-parent homes. In addition, we will continue our efforts on behalf of better physical fitness, preventive medicine, treating cancer and unlocking the mysteries of the so-called intractable diseases, ensuring safe food supplies, and more.
Another aspect of the aging of our population that must not be forgotten is that we do not simply have more old people but that fewer and fewer children are being born each year. The declining birthrate poses a number of problems for Japan's future. We must make an effort to positively support the young people's desire to have children, for the future of Japan depends upon it. Children are our treasure. And it is of the utmost importance that we cherish this treasure and raise our children to be healthy and robust adults. This is etched in my heart, and I am determined to work hard to create the right kind of environment for this.
I will also work actively for the establishment of a child-care leave system enabling women to reconcile the demands of the workplace and the demands of the home and to use their abilities and experience to the same full advantage that men do.
It is extremely important for the aged society of the future that each and every person be able to make full use of his or her abilities and creativity and lead a rewarding life throughout his or her lifetime. I will thus endeavor to ensure a wealth of employment opportunities for the aged, including continuing employment until about age 65 and measures to enable people to develop their abilities throughout their lifetimes.
Education and Culture
Education is the eternal bedrock of the state. It is imperative that we work to bring up young people who are sure of their own identities, who respect history, culture, and traditions, and who have the fair-minded spirit and the creativity that earns them the respect of the international community. It is important to see that school education does not overemphasize academic learning but draws out each student's personality and creativity and that we ensure an educational climate of mutual respect for each person's personality. Responding to the popular demand for diverse and advanced education, we will also make an effort to enhance the opportunities for lifelong education and sports for those desiring spiritual and cultural enrichment.
There is today a heightened interest in culture as the Japanese people seek spiritual affluence. Seeking to encourage the creation and development of new arts and cultural facets while sustaining Japan's own distinctive cultural traditions, I thus intend to enhance the climate and establish the foundations so that all of the people can feel closer to the arts and culture and can participate in the generation of culture and to establish an arts and cultural promotion foundation for the fostering and dissemination of outstanding arts and culture and for the support of community revitalization through culture.
Land and Housing Policy
I suspect one of the main reasons why people do not feel affluent is that their housing is so impoverished. Soaring land prices under-mine the sense of social fairness and rob people of their dream of homeownership. With the much-awaited passage of the Basic Land Act, we moved quickly to put the priority land policies together and, along with closely watching land price trends and unrelentingly deterring speculative trading, we will forcefully implement comprehensive land and housing policies. There will be an overall review of land taxes and we will have a bill ready for deliberation by the end of fiscal 1990. On the issue of the taxation of agricultural land in urbanization promotion areas in major urban areas, we will coordinate, enhance, and review the necessary systems in line with the Comprehensive Land Policy Outline and are working for smooth implementation starting in fiscal 1992.
In addition, we will deploy comprehensive housing policies inline with the diverse and crying demand for housing, including efforts to add a million new homes over the next ten years so that people can find quality housing within commuting distance of Tokyo.
Disparity between Japanese and International Prices, etc.
Japanese prices have been very stable. However, among those prices impacting directly upon consumers are some that are still high in comparison with international price levels. As the head of the newly established Government-LDP Joint Headquarters for Adjustment of Price Differentials between Domestic and Overseas Markets, I thus intend to work for streamlined distribution, strict enforcement of the Anti-monopoly Law, import promotion, appropriate public utility rate schedules, and other improvements so as to reduce the disparity between Japanese and international price levels and to further enhance Japanese living.
The Japanese economy is currently enjoying sustained expansion. While promoting economic policy coordination with the other industrial countries and working to stabilize currency exchange rates, we will also continue to work for appropriate and flexible economic management so as to achieve sustained and non-inflationary growth centered upon domestic demand and to further reduce the external imbalances.
We will make a serious effort to effect that shortening of working hours that is so essential to achieving affluent and comfortable lives for working people. Likewise, along with working to sustain and develop good labor relations, we will strive to promote a vigorous small business sector.
Working to promote academic research and such science and technology as that for nuclear power and the exploration and use of space, we will seek to see that the results of these efforts are used internationally and thus to create a brighter future for humankind.
We will also continue to make vigorous efforts for Hokkaido's comprehensive development and Okinawa's promotion and development.
In addition, we will work to further enhance international exchanges through the International Garden and Greenery Exposition opening this April.
Review of the Consumption Tax
The recent reform of the tax system was intended to provide for the coming aged society and to alleviate the people's feeling that they are taxed unfairly and excessively. Within this, the consumption tax was intended to have all of the people broadly and equitably bear the costs of our shared society. However there have been numerous opinions and suggestions voiced by people in all walks of life. This administration thus conducted a sweeping review of this new tax inline with our consumer-oriented perspective and our emphasis on better living, and the necessary revisions have already been identified. Quickly submitting legislation for amending the law to the Diet, we hope that it will be deliberated and enacted, and we intend to continue to make every effort to gain acceptance for this new tax.
Seeking to alleviate the tax's regressivity and in consideration of social policy, the amendments to be proposed include provisions for exempting foodstuffs at the retail level and also exempting such items as rent the medical costs incurred in giving birth, school entrance fees, textbooks, items needed by the handicapped, and home-care services for the elderly, and there are also further income tax cuts for people living on pensions. Providing for mid-term filing and more frequent tax payment, we are also doing everything we can to iron out the various administrative problems that consumers have pointed out. And on the disbursement side, we will seek to make the uses to which these revenues are put clearer and to enhance public welfare services responsive to the aging of the population.
I am confident that this new tax is an essential support for Japanese society in the twenty-first century. No one likes paying taxes. However, I hope that people will consider the society as a whole, will understand the need, and will cooperate with this new tax.
Administrative and Fiscal Reform
In the draft budget for fiscal 1990, it has proved possible to escape our structural dependence on deficit-financing government bonds. This was only possible thanks to the great efforts of successive Cabinets and your own cooperation.
However, the total amount of bonds outstanding is even now on the increase and is expected to reach \164 trillion by the end of fiscal 1990. Our fiscal situation remains grim. Our basic policy being one of not wanting to leave an excessive burden to the aged society of the future and hence not wanting to again issue deficit-financing bonds, we must now work to solidify the foundations for the future in an effort to create a fiscal structure in which the total amount of bonds outstanding stops increasing.
While we must obviously not let up in reviewing our systems and expenditures, we also want to promote administrative and fiscal reform anew by respecting to the utmost the final recommendations expected from the Provisional Council for the Promotion of Administrative Reform next month.
Likewise, in line with the recent recommendations on the relations between the national and local governments, we will respond positively on such issues as the transfer of authority from the central to the local governments and will promote the revitalization of local areas.
Looking at local government finances, I hope they will be man-aged smoothly.
Finally, we will work to ensure a disciplined administrative structure in which civil service officials are honest and upright and there is not the least suspicion of improper behavior.
Agriculture
Agriculture, forestry, and fisheries have the important mission of providing stable supplies of those foodstuffs that are vital to Japanese life.
In line with the firm long-term outlook for enabling agriculture to stand on its own two feet, we will work to create a climate in which people can farm with pride and hope. With the rapid aging of the population, we will attempt to foster successors who are interested and ambitious as well as to promote further improvements in productivity by, for example, enhancing agriculture's foundations and utilizing biotechnology and other cutting-edge technology, and to encourage the provision of stable food supplies at prices acceptable to the people. By implementing these policies, I hope to halt the decline in our food self-sufficiency and to raise the level of self-sufficiency to at least 50% of caloric intake.
While emphasizing the multifaceted role played by agriculture, forestry, and fisheries and drawing upon local resources, we will also work to revitalize farming, foresting, and fishing villages in the geographically disadvantaged mountain regions and other areas.
With regard to rice, which forms the basis of Japanese agriculture, in view of the special importance of rice and rice-farming and inline with the spirit of the resolutions adopted in the House of Representatives and House of Councillors I inted to deal with this with our basic policy that of self-sufficiency from domestic production.
Creating Vigorous Communities
Regional vitality has been the very basis of Japan's development. I thus intend to work for the creation of communities that are richly creative and replete with diverse potential and to promote specific furusato-creation policies as also recommended in the recent report from the Forum for the Creation of Vigorous Communities. Likewise, I intend to work on the revitalization of underpopulated communities.
It is the government's responsibility to correct the overconcentration and overdependence on Tokyo and to work vigorously to promote the creation of multipolar and balanced national land use. Promoting public works investment with all due care not to provoke higher land prices, we will, in line with the Fourth Comprehensive National Development Plan, encourage the dispersion of urban and industrial functions to non-Tokyo areas as well as promoting the provision of high-speed transport trunk roadways and high-speed information and communications networks and encouraging the formation of personal networks through the holding of events and other exchanges. We will also make a special effort to deal positively with the New Tokyo International Airport and to complete work there soon. At the same time, we will work on the maglev train and other new technology for the creation of advanced transport services.
As well as making every effort to ensure traffic safety in light of the recent increase in the number of traffic accidents we will make an effort to enhance disaster-relief policies in urban and other areas and to promote international cooperation in the disaster-prevention field this year, the first year of the International Decade for Natural Disaster Reduction. At the same time, we are determined to respond firmly to violence, terrorism, and guerrilla attacks threatening the public's peace of mind and affronting freedom and democracy.
Conclusion
I am keenly aware that Japan and the rest of the world are now at a historic turning point in which we will determine our own future.
As we move toward the end of the Cold War and with the increasing importance attached to economics and technology, now is the time for Japan to put the economic strength, technological prowess, and experience that it has gained thanks to the international community at the service of the global community and to make a positive contribution.
Looking around us, we see people still suffering from poverty or illness, countries that are still in the developing stage and dependent upon assistance, countries that are taking the first steps in pursuit of freedom, and a globe that is wracked with the threat of environmental degradation. Joining hands with the other countries of the world, we must take the leadership in seeking to resolve these problems, not being content to extend economic assistance alone but also making abroad-based contribution including the transfer of advanced technology and help with human resources development. Let us therefore exert ourselves in achieving these lofty ideals, enabling all the people of the world to lead more affluent and rewarding lives and creating a beautiful and comfortable planet Earth.
The new international community that we seek to create will have no need of the word "war" and will assuredly be a world of peace and prosperity. I am thus determined to make every effort in pursuit of this lofty ideal.
In this, I ask for the understanding and cooperation of my fellow Diet members and all of the Japanese people.
(3) Foreign Minister Taro Nakayama's Foreign Policy Speech to the 118th Session of the National Diet
(March 2, 1990)
I would like at the opening of the 118th Session of the National Diet to set forth my views on the basic foreign policy of Japan.
Introduction: Japan's Response to a Changing World
The international community stands on the threshold of a period of historic transformations, both political and economic. In particular, the political situation in Europe is changing at a faster pace than anybody could have imagined. The countries of Eastern Europe are shedding their old ideologies and setting out on the path of democracy and market economies, and the Soviet Union, 70 or so years after the communist revolution led by Lenin, has taken steps to renounce the dictatorship of the Communist Party and introduce a market economy.
In addition to moves toward the integration of Western Europe, there have been rapid developments on the issue of German unification. Moreover U.S.-Soviet relations appear to be moving from an era of confrontation toward expanded dialogue and, further, to the building of a new relationship that transcends the Cold War approach. Naturally, these historic developments are going to have an enormous influence on the world as a whole.
We should welcome these changes, which show that more and more people are accepting the principles of freedom, democracy, and market economies.
At the same time, however, the sheer pace of the changes taking place in the Soviet Union and Eastern Europe brings with it uncertainty, and many destabilizing factors remain in the international community. In the Asia-Pacific region alone, tension and instability remain on the Korean Peninsula, in Cambodia, and elsewhere.
Ideology is not the only cause of conflict among countries around the world; we should not overlook conflicts that have their roots in history, culture, or other factors. Arms control and disarmament certainly enhance national security, but it will not be possible to realize peace immediately through these measures alone.
In the international economy, meanwhile, mutual interdependence is growing at a tremendous rate, but the framework of the postwar international economy, including the mutilateral free trade system, stands at an important junction, with various structural changes taking place and protectionism raising its head. Moreover, the accumulating debts of developing countries pose a major problem for the world economy.
At such a time, it is extremely important for Japan to develop an active diplomacy geared toward ensuring the peace and prosperity of the world. After all, Japan now has an economic power that accounts for 14% of the world gross national product, tremendous technological strength, and a wealth of experience as a nation that has developed from economic backwardness to become an advanced industrial country.
Being aware of our responsibilities and role in the international community, adopting a new outlook, and making sacrifices ourselves when necessary, we must maintain our determination to contribute to the prosperity and stability of the world. I believe this is the only way for us to become a reliable member of the international community in the future.
With these perspectives in mind, allow me to state my opinions on the main foreign policy issues facing Japan today.
Relations with the United States and Europe
To overcome conflict and build a new international order based on dialogue and cooperation, the whole world, and especially the industrial democracies, must join hands and tackle the problems together. For this purpose, it is necessary to strengthen relations among Japan, the United States, and Europe.
As allies that are becoming ever more interdependent and have the common values of freedom, democracy and market economies, Japan and the United States enjoy a basically firm relationship. While the issues on which Japan and the United States must cooperate are becoming global in scale, the Japan-U.S. relationship itself is having an increasing influence on the international situation. In this sense, it is important for Japan to engage in policy coordination with the United States on the main bilateral problems facing us and to strengthen our joint endeavor with the United States on ,global problems.
On the economic front, Japan-U.S. relations face a difficult situation, with bilateral trade still running up an enormous imbalance. The most important issue on the bilateral agenda at the moment is the Structural Impediments Initiative talks. I intend to do all I can to achieve progress in these talks so that they contribute to improving Japan's standard of living and to strengthening American competitiveness.
At the foundation of our relationship with the United States are the Japan-U.S. security arrangements. Despite the recent developments in East-West relations, the balance of power and deterrence continue to be the underpinnings of international politics. In these circumstances, the Japan-U.S. security arrangements will continue to be indispensable as we strive to ensure the peace and security of our country through effective deterrence and active dialogue and to contribute broadly to the stability and development of the Asia-Pacific region. While developing a moderate defense capability, the government is determined to firmly maintain the Japan-U.S. Security Treaty and continue to work to ensure its smoother functioning.
The government intends to enter the Japan-U.S. summit meeting, scheduled for March 2 and 3, with this awareness of the importance of Japan-U.S. relations firmly in mind. With the approval of the Diet, I hope to accompany the Prime Minister on his visit to the United States and do my utmost to further strengthen the cooperative relations between our countries.
With regard to our relations with Europe, I believe that a marked strengthening of our cooperative ties with countries in this region is needed. Believing that the creation of a democratic, prosperous, and stable Europe is essential to the formation of a desirable international order in the future, I am paying close attention to developments in East-West European relations, including the moves toward integration of the European Community, developments in the relationship between the EC and the European Free Trade Association, and progress toward German unification. As Europe takes on increasing importance, it is vital for Japan to forge close ties with the region in a broad spectrum of areas, including politics, economics, and culture. When the Prime Minister and I visited Europe in January, we concurred with European leaders on the need to strengthen the bonds between Japan and Europe.
The broad expansion of the trilateral relationship among Japan, the United States, and Europe can contribute enormously to the creation of a new international order. On the occasion of our visit to Europe in January, the Japanese Government announced economic assistance programs for Poland and Hungary to help their economic reconstruction and development, which is the key to the success of their efforts to democratize and improve their standards of living. This assistance stemmed from our awareness that the events now taking place in Eastern Europe are directly related to the peace and prosperity of the world as a whole, including Japan. It was a clear indication to both the Japanese people and the rest of the world of our determination to cooperate with Europe and the United States in building a bright future for the international community. Our intention is to keep a close eye on the progress of reforms in other East European countries, as well as Hungary and Poland, and to respond actively in cooperation with the United States and European countries.
Relations with the Asia-Pacific Countries
Next I would like to talk about our relations with the Asia-Pacific countries.
In view of the international situation that I have just described, it is more important than ever that we make efforts to eliminate the destabilizing factors in the Asia-Pacific region, ensure its prosperity, and build a region that is dynamic and open to the rest of the world.
With regard to the Korean Peninsula, I hope that the dialogue between North and South will make progress, and I intend to make an appropriate contribution toward creating a climate conducive to this purpose.
With the Republic of Korea we hope to build a cooperative relationship based on a global perspective and oriented toward the twenty-first century. We will also make a good-faith and all-out effort in the talks that we are now holding with the Republic of Korea on the problem of the legal status and treatment of descendants of Korean residents in Japan. In addition, we very much hope that South Korean President Roh Tae Woo will visit Japan as early as possible.
The improvement of our relations with North Korea is also an important task. To this end, we will continue to persevere in our call for dialogue, and provide lateral support for exchanges between Japanese and North Korean people in various fields.
For the peace and stability of both the Asia-Pacific region and the world as a whole, it is extremely important that China maintain and develop cooperative relations with other countries, rather than isolating itself. The Japan-China relationship has a major role to play in this respect, and it is very important to maintain and strengthen friendly and stable ties between our two countries. When Chinese State Planning Minister Zou Jiahua came to Japan in January, we stated clearly once again that the improvement of relations between China and Western countries requires efforts on both sides and that we especially hope for even greater efforts on the Chinese side. I believe it is important for both Japan and China to make efforts to restore our bilateral relations as soon as possible.
In general the member states of the Association of Southeast Asian Nations are securing peace and stability and attaining spectacular economic development. Japan puts great emphasis on the role of ASEAN and intends to build cooperative relations with the organization. It was with this in mind that I paid a visit to Thailand and Malaysia at the beginning of the year.
The coup attempt in the Philippines that occurred last December was extremely unfortunate, but Japan intends to continue to support that country's efforts to consolidate democracy and reconstruct its economy by participating in the Multilateral Aid Initiative for the Philippines and other means.
With regard to the Cambodian problem, which is the biggest destabilizing factor in Southeast Asia, certain developments have been seen, such as the international agreement on the strengthening of the United Nations' role in the period leading up to an election. It is to be hoped that further progress will be achieved in the discussions among the parties concerned on the makeup of a provisional administration, which is the key to peace in the country. In these circumstances, we intend to contribute in concrete ways to the peace process itself and also to actively consider providing human and financial cooperation after the attainment of peace.
On the Indian subcontinent, we intend to continue to cooperate in promoting the region's stability and development and to make efforts to further broaden and deepen our relations with countries in the region.
In Oceania, we will continue to further expand and strengthen our relations with Australia, New Zealand, and the island nations of the Pacific.
In November of last year the first ministerial-level meeting on Asia Pacific Economic Cooperation took place, at which Japan proposed a specific initiative for cooperation and emphasized that such cooperation should not aim at the creation of a regional bloc but should be open to the rest of the world. Japan intends, in tandem with the activities of the Pacific Economic Cooperation Council, to continue its efforts toward the further development of Asia-Pacific cooperation.
Relations with the Soviet Union
Let me now go on to our relations with the Soviet Union.
For the changes taking place in East-West relations to become truly global, it is essential to achieve the normalization of Japan-Soviet relations, which are an important factor in East-West relations in the Asia-Pacific region. It is Japan's policy to achieve development of the overall relationship between our two countries in a balanced manner in line with the basic policy of establishing stable relations through resolving the Northern Territories issue and concluding a peace treaty. We are making efforts according to this policy, which has gained Soviet understanding in principle. We support the perestroika policy of President Gorbachev, while we Hope that the Soviet Union's "new thinking" diplomacy will be actively applied for improvement of Japan-Soviet relations and for peace and prosperity in the Asian and Pacific region.
I intend to further develop the dialogue between our two countries toward President Gorbachev's visit to Japan next year.
Relations with the Middle and Near East, Africa, and Latin America
I believe it is essential for Japan to make efforts to geographically broaden its diplomatic activities and pursue a global foreign policy.
Following the favorable turn in U.S.-Soviet relations, there are signs of stabilization in some regions, for example, the achievement of independence in Namibia. Generally speaking, however, there are many countries in the Middle and Near East, Africa, and Latin America that are suffering from not only accumulating debts and serious development problems but also unstable political situations. The international community must continue to pay close attention to these countries. For its part, Japan intends to make efforts toward the solution of these problems by providing these countries with as much positive support as possible and cooperating in various international initiatives.
The situation in the Middle East remains unpredictable. We invited the chairman of the Palestine Liberation Organization and the Foreign Minister of Israel to Japan last year and called on them to make further efforts toward peace, and we intend to continue to make a positive contribution to the achievement of peace in the region. We also strongly hope for the achievement of true peace and unification in Lebanon. As for peace negotiations between Iran and Iraq, we fully support the efforts of the Secretary-General of the United Nations to bring about a settlement, and we intend to offer all possible cooperation.
The international community, including Japan, has for a long time been calling on the South African Government to abolish apartheid, and recently we have seen major progress in the domestic situation in South Africa, including the release from prison of Nelson Mandela. Japan highly appreciates these changes and advances toward reform. We will support moves toward the achievement of a peaceful settlement of the apartheid problem through negotiations between those concerned, and at the same time we intend to provide assistance to the victims of apartheid and extend economic cooperation to South Africa's neighboring countries, thereby enhancing our contribution to the stability of the region as a whole.
In recent years we have seen progress toward democracy in many Latin American countries, and just recently Nicaragua staged a free and fair general election under international supervision. Our country welcomes this as an important step toward the achievement of real peace in the region. We will continue to contribute as much as we can to true stability and development in Latin America.
Contributing to the World Economy
At a time when the world economy faces such problems as the large external imbalances among the major countries, the intensification of protectionist pressures, and the debt problem, the maintenance and strengthening of policy coordination is required. Through the annual economic summit and other forums, we must take an active role in promoting policy coordination among the major industrial democracies and make efforts to ensure that our external economic relations are managed smoothly. To harmonize our domestic economy with the world economy as a whole, we must, above all else, rectify our external imbalances by continuing to manage the economy so that growth is led by domestic demand and by taking comprehensive steps to increase imports by, for example, further improving access to our markets, carrying out deregulation and other structural adjustments, and introducing tax incentives for corporations that import manufactured goods.
With regard to the Uruguay Round of multilateral trade talks, in November last year I invited ministers concerned from the main participating countries to Japan for informal discussions aimed at bringing about progress in the negotiations. This year, as the negotiations enter their final stage, it is expected that Japan will have to make some difficult domestic adjustments. As a nation that has achieved its prosperity under the free trade system, however, we are determined to do all we can to ensure the success of the negotiations, because we realize that the maintenance and strengthening of the multilateral free trade system is essential to the future prosperity of not only Japan but the world as a whole.
Since the world economy cannot really prosper unless the developing countries achieve sound economic development, it is especially important that the industrial democracies and the developing countries strengthen their cooperative relations. We intend to take steps to tackle the debt problem and expand and strengthen Japan's official development assistance (ODA).
Contributing to World Peace and Prosperity: Promotion of the International Cooperation Initiative
In 1988 Japan, looking for specific ways to make contributions to the international community commensurate with its international standing, proposed the International Cooperation Initiative, which we are now promoting. The three pillars of the initiative are cooperation for peace, the expansion of ODA, and the strengthening of international cultural exchanges.
With regard to the first pillar of the initiative - cooperation for peace - we will continue to make diplomatic efforts toward building a firm foundation for peace and strengthen our cooperation with United Nations peace-keeping activities. In particular, last year we dispatched a group of 27 people to Namibia to supervise that country's election for a Constituent Assembly. Our first such full-scale dispatch, this contribution was much praised by the United Nations. Last month we also dispatched personnel for the observation of the election in Nicaragua. As well as continuing our financial contributions, we intend to take steps to improve our arrangements for dispatching personnel overseas.
Furthermore, by sharing our technological know-how and experience, we intend to make a concrete contribution in the field of inspection to the multilateral efforts toward arms control and disarmament taking place at such forums as the United Nations and the Geneva Conference on Disarmament.
The expansion of ODA represents an important pillar of our diplomatic effort to make a positive contribution to the international community through nonmilitary means. Looking back, Japan was once a developing country that received assistance for its economic development from the World Bank, the United States, and other countries. Today Japan is proud to be one of the largest, if not the largest, donors of aid, providing a total of \1.2 trillion.
Japan's ODA contributes effectively to economic development, raising standards of living, mitigating poverty, and fostering human resources in developing countries .in regions that now extend around the world, including Asia, where much of our aid goes, Africa, the Middle and Near East, and Latin America. Making full use of our experience as a country that not long ago was on the receiving end of assistance, we are determined to further promote policy dialogue and policy coordination with not only the developing countries but also other donor countries and international organizations. In line with the Fourth Medium-Term ODA Target that is now underway, we are determined to continue to expand. our ODA in quantitative terms, improve its content, and enhance its quality, as well as strengthening our system for implementing assistance and taking positive steps to tackle new problems as they arise. We also intend to make further efforts to strengthen the evaluation system so as to ensure that assistance projects are implemented effectively and efficiently and to obtain the understanding and support of the people for our ODA policies.
With regard to the strengthening of international cultural exchange, it is important for us to respond in a positive manner to the growing interest in and expectations of Japan in other countries, to deepen understanding of Japan, and to cooperate actively in various international cultural efforts. I intend to encourage the creation of new forms of culture through wide-ranging cultural exchanges and to make further efforts to preserve cultural heritages around the world.
Since exchange among people lies at the foundation of cultural exchange, there is a need to increase exchange among people at all levels; such exchange also serves to promote mutual understanding among countries. At present there are about 30,000 foreign students studying in Japan. Exchange among people also contributes to the internationalization of Japan, and I intend to actively promote such exchange.
In all countries of the world, humankind faces the task of overcoming a host of problems before people can lead healthy, fulfilling lives in more affluent environments. It is important for Japan to act as a responsible member of the global society and tackle such global problems as destruction of the environment, drugs, international terrorism, human rights, and refugees.
On global environment issues, such as global warming, we will, by drawing on our wealth of experience and technology, cooperate even more than before in building an international framework for the solution of these problems and in helping developing countries solve their environmental problems.
On drugs, we will provide support for the activities of the United Nations and other organizations toward solving the drug problem, which poses a threat to the whole of humankind.
On terrorism, we are resolutely opposed to all forms of terrorism, including the bombing of passenger airplanes, whatever the reason. With the objective of guaranteeing the security of the international community, we will strengthen our cooperation in international efforts toward preventing acts of terrorism.
Japan was a participant in the Declaration on Human Rights issued at last year's economic summit of industrial democracies, in which we reiterated our respect for human rights. And we intend to increase our cooperation in solving refugee problems, including our financial contributions to the Office of the United Nations High Commissioner for Refugees and other organizations and our cooperation in accepting Indochinese refugees for settlement in Japan.
As well as providing the driving force behind economic development, the amazing advances that have taken place in science and technology recently have unlimited potential for solving the common problems confronting humankind. With this in mind, Japan, which has the goal of becoming a full-fledged technological state, desires to make an international contribution in the field of science and technology, in which we possess prowess, by encouraging, for example, exchanges among researchers, joint international research, and the exchange and transfer of technology. We will also make efforts to ensure that science and technology are used in appropriate ways.
In particular, to enable people in developing countries to enjoy healthy and fulfilling lives, we will make full use of our experience as a nation that has achieved the longest average life span in the world to actively promote international cooperation in the field of medicine.
Strengthening the System for Implementing Diplomacy
As I have said, Japan has a rapidly expanding role to play in the international community today. We need to strengthen our system for implementing diplomatic activities so that we can respond correctly to new situations, carry out our diplomatic policies in a positive manner, and enhance our safeguarding of the increasing number of Japanese living overseas, which includes taking speedy action in time of emergency. I will do my utmost to achieve this.
Conclusion
As should be clear from my speech, diplomacy is taking on increasing importance for Japan these days. Foreign policy is the other side of the domestic policy coin, and vice versa. Japan cannot have peace and prosperity unless the world as a whole enjoys peace and prosperity, and Japan's behavior now exerts a major influence on the peace and prosperity of the world. In view of this, I am keenly aware of the magnitude of my duties, and I am determined to be active on the diplomatic front line and to make the utmost effort to do what is best for Japan and for the peace and prosperity of the world. In this, I appeal for the support and understanding of the people and of my colleagues in the Diet.