Japan PM snubs demand for snap election

29 January 2009 1544 hrs (SST)

TOKYO: Japan's beleaguered Prime Minister Taro Aso on Thursday rejected calls for immediate polls as the opposition dismissed his plans to revive the ailing economy as no more than wishful thinking.

"As there is an unprecedented global financial crisis, I have been doing my best to compile economic measures and financing bills in order to protect people's lives and employment," Aso said in parliament.

"I will seek people's mandate at a due time in the future by making our differences from the opposition clear," he said.

Photo: Prime Minister Taro Aso

Aso was replying to the demand for snap polls by senior opposition leader Yukio Hatoyama.

Hatoyama accused Aso of having "unfounded optimism" when the world's second largest economy is slipping into a deeper recession and thousands of people are losing jobs.

"I call this a political disaster," Hatoyama said.

Aso, who took office just four months ago, needs to hold an election by September next year and the resurgent opposition has been pressing the premier to dissolve the lower house as soon as possible.

The ruling Liberal Democratic Party (LDP) has been in power for all but 10 months since 1955. But its popularity has rapidly dwindled due to scandals, gaffes and concerns over the handling of the economy.

The LDP and its junior partner New Komeito this week enacted a stimulus budget that includes a controversial plan to give the public two trillion yen (22 billion dollars).

Aso said the cash handouts were needed to boost spending and help cash-strapped households.

But opinion polls show that most of the public believes the handouts -- averaging 12,000 yen (130 dollars) a person -- would be a waste of money and could be better used to help jobless and other people in trouble.

"The handout is the ultimate foolish policy, an evil bait for votes and a waste of tax money," Hatoyama said.

- AFP/yt

Press Conference, 29 January 2009

1. Foreign Minister Nakasone's Diet speech highlights
2. Foreign Minister Nakasone's visit to Okinawa
3. Questions concerning Japan-Russia relations
4. Questions concerning Prime Minister Aso's telephone conversation with US President Obama

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I. Foreign Minister Nakasone's Diet speech highlights

Deputy Press Secretary Yasuhisa Kawamura: Good afternoon. Welcome to the conference.

I have two brief announcements to begin with.

First, yesterday, Wednesday, the 28th, Foreign Minister Nakasone delivered a policy speech to the 171st Session of the Diet. In the speech, Foreign Minister Nakasone underlined three areas for priority in Japanese foreign policy making this year: (1) To reinforce the Japan-US Alliance and advance cooperative relations with neighboring countries; (2) To deepen the cooperation with countries which we share fundamental values with so as to achieve global peace and stability; and (3) To assert leadership by making the best use of Japan's experience and insights in order to respond to the common challenges which affect the fate of humankind. Thus, the Foreign Minister clearly stated his readiness to act and cooperate with the rest of international community at this time of changing and tough challenges.

Related Information (Policy Speech by Foreign Minister Nakasone to the 171st Session of the Diet)


II. Foreign Minister Nakasone's visit to Okinawa

Second, over this coming weekend, Foreign Minister Nakasone will visit Okinawa. There, he will meet the Governor of Okinawa, Hirokazu Nakaima and visit the site for the Futenma Replacement Facility and other sites. As the Foreign Minister stated in his policy speech yesterday, we will steadily implement the realignment of the US Forces in Japan so as to maintain the deterrence element of the alliance while reducing burdens on local communities including Okinawa.

That's all from me. I would now like to invite your questions, please.

Related Information (Press Release)

III. Questions concerning Japan-Russia relations [deleted]

Related Information (Japan-Russia Relations)

IV. Questions concerning Prime Minister Aso's telephone conversation with US President Obama

Q: And on a separate topic, the telephone talks between Prime Minister Aso and US President Obama, we got the briefing on what they discussed, but can you describe how the atmosphere was? Because, I read in the sheet that it was held in English, so did Prime Minister Aso do all the conversation himself in English? Was there a problem?

Mr. Kawamura: To be frank and honest, I was not at the place. So judging from the information I have, first of all, the meeting was a smooth one because Mr. Aso spoke in English with no interpretation. This is a good advancement of the communications between the two leaders. The meeting was a smooth and comfortable one for both sides' leaders.

And second, Prime Minister Aso made the best use of the ten minutes. He covered all the important issues ranging from the further cooperation in the context of the world financial crisis and up to the strengthening of the Japan-US Alliance. It was a very pragmatic and productive meeting in a friendly atmosphere. To wrap up, it was a very good start for the two leaders.

Thank you very much.

Related Information (Telephone Conversation between Prime Minister Aso and U.S. President Obama)

Click for MOFA Press Conference web page.

Prime Minister Bailout

* OPINION ASIA
* JANUARY 29, 2009

How much longer can Aso's government last?

Prime Minister Taro Aso added some lead to his sinking ship yesterday, promising to take "drastic measures" to ensure Japan is "the first country in the world to emerge from this recession." Bailing out the country's consumers, banks and corporations with borrowed money isn't the way to do that.

Mr. Aso's government Tuesday rammed through a supplementary budget, totaling 4.8 trillion yen ($53.4 billion), to pay for the stimulus package it passed in October. The package, among other things, includes cash handouts for all citizens regardless of need. Also Tuesday, the Minister for Economy, Trade and Industry, Toshihiro Nikai, floated an idea to "support companies that we think are important for Japan and for regional economies, regardless of their size." That's code for government knows best; Tokyo, not the market, will pick winners and losers.

The Prime Minister couched this huge government expansion in the rhetoric of seeking a "society of peace of mind and vitality." Yet it's unclear how Japan is going to afford this Zen-like state. Mr. Aso has floated the idea of raising the consumption tax, already at 5%, but it doesn't make sense to squash disposable income in a recession. The ratio of government debt to GDP is over 180%.

Photo: Taro Aso.

The only reason Japan can afford such a huge debt burden is because its central bank held interest rates at zero for years. The current rate is 0.1%. It's a destructive policy. Japanese households have seen their savings pools wither. Small- and medium-size enterprises that should have gone bust could access cheap capital. And successive Japanese administrations have dipped into the debt pool without defaulting.

The only time that the Japanese economy showed any signs of life in recent times was under former leader Junichiro Koizumi, who realized that the best way to escape piles of debt is to grow the economy. Mr. Aso disavowed Mr. Koizumi's legacy yesterday, asserting that "catchphrases such as 'shifting from the public sector to the private sector' and a dichotomous mode of thinking such as 'big government or small government' will not alone provide the vision we seek."

That vision is a return to the socialism that Japan has struggled to shed for decades. This is no time to expand government and waste capital on politically motivated handouts. Japan's economy may have contracted as much as 10% in the fourth quarter, and its exports are dropping at double-digit rates. What Japan needs now is a Koizumi-like reformer who will throw open the economy to foreign investment, trade and competition.

The Japanese public appear to understand that Mr. Aso is leading them down the road to economic disaster. The Prime Minister's approval ratings are hovering around 20%, and there's talk of a snap election by March or April. The few reformers that are left within the ruling Liberal Democratic Party are leaving. Mr. Aso's ship may sink sooner, rather than later.

Obama, Aso agree to meet in June

Published: Jan. 29, 2009 at 12:14 AM

TOKYO, Jan. 29 (UPI) -- Japanese Prime Minister Taro Aso and U.S. President Barack Obama have agreed to summit in early June, Japanese Foreign Ministry officials said.

In a phone call Thursday, Aso and Obama also agreed to work together to tackle the global financial crisis and issues related to North Korea, the reclusive communist state, Kyodo reported.

The 10-minute call was the first time the men have spoken to each other since Obama took office Jan. 20, the news service reported.

Since his inauguration, Obama has held telephone talks with leaders of more than 10 countries, including Israel, Egypt, Britain, France, Germany, Russia, Brazil and Australia.

Aso speaks to Obama

January 29th, 2009 by James

Prime Minister Taro Aso has finally been able to have a chat with President Barack Obama:

The two leaders had a 10-minute telephone conversation this morning, pledging to cooperate on the economic crisis, the global war on terrorism, and the North Korean abduction issue. Aso spoke in English the entire time and did not need an interpreter. (Look forward to some “yes he can” [speak English] jokes on this evening’s news broadcasts.)

Since taking office last week, Obama has spoken to quite a few world leaders. Taro Aso was 15th on his list (6th in the G8), but the 1st East Asian leader to speak with the new president.

This entry was posted on Thursday, January 29th, 2009 at 1:40 pm

Japan says Obama, Aso agree to work on NKorea

29 January 2009 1116 hrs (SST)

TOKYO: US President Barack Obama and Japanese Prime Minister Taro Aso agreed Thursday to cooperate on North Korea's abductions of Japanese, an issue that has caused a rift between the allies, Tokyo said.

Obama and Aso held a 10-minute telephone conversation, their first since the US president took office last week, and discussed a range of matters including the global economic crisis, the Japanese foreign ministry said.

"Prime Minister Aso and President Obama agreed to work hand in hand" in "securing peace and prosperity in the Asia-Pacific region," a ministry statement said.

Photo: A photo exhibition in Tokyo in 2006 shows Megumi Yokota before she was abducted by North Korea in November 1977.

The leaders agreed to address "North Korean issues including the abduction issue and to further strengthen the Japan-US alliance," it said.

kidnapped by North Korean agents in the 1970s and 1980s to train its spies in Japanese language and culture.

Aso, a conservative who is struggling in opinion polls, faced opposition criticism last year for failing to stop the United States from removing North Korea from a blacklist of state sponsors of terrorism.

The United States took the action as part of a denuclearisation deal, but Japan had wanted further movement on the abduction row.

Japanese politicians and media place immense significance on how Washington treats Tokyo compared with emerging powers, with some jittery that the Obama administration is more inclined to work with China than Japan.

Japan-US ties reached new heights during the 2001-2006 premiership of Junichiro Koizumi, who cultivated a close relationship with then-US president George W. Bush and took the landmark step of sending troops to Iraq.

- AFP/yb

State Dept. eyes Kevin Maher as new Japan desk chief

Jan 28 11:44 PM US/Eastern

WASHINGTON, Jan. 28 (AP) - (Kyodo) — The State Department is considering Kevin Maher, consul general in Naha in Japan's Okinawa Prefecture, as new director of its Office of Japanese Affairs, diplomatic sources said Wednesday.

Maher, who has been in his current position since July 2006, had previously been director for political military affairs at the U.S. Embassy in Tokyo and in charge of the realignment of U.S. forces in Japan, including the planned relocation of the U.S. Marine Corps Futemma Air Station in Ginowan, Okinawa.

The top post at the Office of Japanese Affairs has been vacated by veteran Japan hand Daniel Russel, who has recently taken a post in charge of Japanese and Asia-Pacific affairs on the White House National Security Council.