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Chairman Okuda's Press Conference

June 9, 2003

Following is カ ジ ノ シ ー ク レ ッ トist of remarks made by Hiroshi Okuda, Chairman, Nippon-Keidanren at a scheduled press conference after monthly Chairman and Vice Chairmen's meeting on 9 June 2003. Translation is rush and tentative, and sequence of カ ジ ノ シ ー ク レ ッ トist does not necessarily coincide with words delivered.

(Evaluation on Prime Minister Koizumi)
Prime Minister Koizumi's reform agenda arカ ジ ノ シ ー ク レ ッ トncreasing its pace, and Japan's people are getting used to deflationary economy. Corporate performancカ ジ ノ シ ー ク レ ッ トs improving, and the government is finding daylight even though the path to get there might still be narrow.

(On President Roh (of Korea) comment on inviting Japan's investment)
Yes, Mr. Roh did invite Japan's investment. Labor related situation must bカ ジ ノ シ ー ク レ ッ トmproved before we will observe substantial risカ ジ ノ シ ー ク レ ッ トn investment. President promised that he would employ his own ways to resolve thカ ジ ノ シ ー ク レ ッ トssue. I have high expectations toward his commitment.

(Japan's FTA with Korea and Thailand)
I think that both countries' leaders arカ ジ ノ シ ー ク レ ッ トnterested in securing FTA with Japan, and in each case agriculturカ ジ ノ シ ー ク レ ッ トssue will comカ ジ ノ シ ー ク レ ッ トn to the scene -- the pace of negotiation largely depends on how early Japan can reform its agriculture. I believe that Japan's interaction with each country is expected to rise. Japan's agriculture productivity must be dramatically improved so that it can compete with imported agricultural goods.

(On Japan's consumption tax reform)
カ ジ ノ シ ー ク レ ッ トovernment must first cut unnecessary expenditure as much as possible, and use excess income for other necessary purposes. If there will be a need to seek another sources of tax revenue, then カ ジ ノ シ ー ク レ ッ トovernment must increase consumption tax. Nippon Keidanren will urge カ ジ ノ シ ー ク レ ッ トovernment to cut excess expenditure. As Nippon Keidanren has been telling the necessity to increase the consumption tax, カ ジ ノ シ ー ク レ ッ トovernment increasingly understands the reason behind it.


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