Courtesy Call from the Secretary of Defense of the United States
Cabinet Secretariat, Friday, June 29, 2018
[Provisional Translation]
On June 29, 2018, Prime Minister Shinzo Abe received a courtesy call from the Honorable James Mattis, Secretary of Defense of the United States of America, at the Prime Minister's Office.
Meeting Between Minister for Foreign Affairs Taro Kono and the Secretary of Defense of the United States James Mattis
Foreign Affairs, Friday, June 29, 2018
On June 29, commencing at 0:35 p.m. for approximately 40 minutes, Mr. Taro Kono, Minister for Foreign Affairs, held a meeting with the Honorable James Mattis, Secretary of Defense of the United States of America, who is visiting Japan. The overview of the meeting is as follows.
1. At the beginning, Minister Kono welcomed Secretary Mattis’s visit to Japan for the first time since February last year and expressed his gratitude to Secretary Mattis’s hospitality during Minister Kono’s visit to Washington DC in March, and then explained that he intends to work closely with the U.S. towards further enhancing operational and deterrent capability of the Japan-U.S. Alliance. In response, Secretary Mattis explained that the Japan-U.S. Alliance is a priority and he intends to fulfill his duty as the defense authority to support the efforts undertaken by the foreign authority.
2. The two sides exchanged views on North Korea and shared a view that the reconfirmation of Chairman Kim Jong Un’s intention for the complete denuclearization of the Korean Peninsula at the U.S. - North Korea summit meeting was a step towards the comprehensive resolution of outstanding issues of concern regarding North Korea and that Japan and the U.S. will be always together in the process going forward. The two sides also confirmed the following:
(1) Whether to continue the pause in the U.S.-ROK large scale combined military exercises is contingent upon North Korea’s action towards realizing complete, verifiable and irreversible dismantlement (CVID) of all of its WMD and ballistic missiles of all ranges.
(2) The Japan-U.S. Alliance and the U.S.-ROK Alliance as well as the deterrence based on them play essential roles in security in the North-East Asia, and neither withdrawal nor reduction of U.S. Forces in the ROK has been considered.
(3) The U.S. will not take a simultaneous and step-by-step approach, and measures pursuant to the UN Security Council Resolutions will remain in place until CVID is realized and countering ship-to-ship transfer will remain important.
Furthermore, Minister Kono stated that he intends to cooperate with the U.S. Department of Defense to resolve the abductions issue immediately, and, in response, Secretary Mattis explained that the U.S. Department of Defense has been undertaking efforts on Korean War POW and MIA, that these are human rights issues, and that he intends to cooperate with Japan to the maximum extent including through sharing information.
3. The two sides exchanged views on the relationships with China based on Secretary Mattis’s visit to China. The two sides shared a view that China plays an important role for peace and stability in the region, including addressing the issue regarding North Korea and that it is important to build constructive relationships with China.
4. The two sides shared the intention to enhance coordination with any country that shares the vision and to advance cooperation especially in the fields of maritime security and sustainable development, with a view to realize the free and open Indo-PacificOpen a New Window based on the rule of law.
5. The two sides shared concerns over situations in the East and South China Seas and confirmed that they will closely coordinate with each other.
6. The two sides also discussed regional affairs including the situation in the Middle East.
7. The two sides reconfirmed that Japan and the U.S. will continue to conduct the Japan-U.S. joint exercises with a view to maintain operational and deterrent capability and that they are committed to making steady progress in the realignment of U.S. Forces in Japan to facilitate mitigating impact on local communities including Okinawa.
“Beauty of Japan” Comprehensive Project Advisory Panel and Japonismes 2018 Comprehensive Promotion Council
Cabinet Secretariat, Friday, June 22, 2018
[Provisional Translation]
On June 22, 2018, Prime Minister Shinzo Abe concurrently held the sixth meeting of the “Beauty of Japan” Comprehensive Project Advisory Panel and the third meeting of the Japonismes 2018 Comprehensive Promotion Council at the Prime Minister's Office.
At the meeting, there was discussion on Japonismes 2018 and other matters.
Based on the discussion, the Prime Minister said,
“I would like to express my gratitude to everyone for attending this ‘Beauty of Japan’ Comprehensive Project Advisory Panel and Japonismes 2018 Comprehensive Promotion Council meeting today despite your busy schedules.
The seeds of a Japan Exposition concept were sown at this Advisory Panel two years ago. This may be putting it too strongly, but no one could have imagined that we would really be able to set up this project in Paris in a little over two years. However, thanks to everyone’s contributions, it has now grown into a large flower and will blossom profoundly in France as Japonismes 2018 from next month.
Circumstances permitting, I will attend the opening ceremony to be held in Paris next month together with President Macron and promote to all of France and the rest of the world the beauty of Japan. With the cooperation of Mr. Shingo Katori, the PR Ambassador of Japonismes 2018, I want to thoroughly show the wonders of Japonismes 2018.
There will be an exhibition on the theme of ‘FUKAMI (depth),’ which expresses the overall concept of Japonismes 2018, an authentic Shochiku Grand Kabuki performance, the first to be held in Paris in 11 years, and a concert by Hatsune Miku, which is very popular among young people overseas. My heart is beginning to beat with excitement for these projects. I hope to have many people from around the world experience for themselves the aesthetic of Japan, and share with them the emotion that this aesthetic imparts.
In 2019, several projects in the United States and Southeast Asia are in the pipeline, following Japonismes 2018 and making use of its momentum. I would like the relevant ministries and agencies, led by the Ministry of Foreign Affairs (MOFA) and the Japan Foundation, to work together and exert every effort on this.
In addition, I have received a proposal from the members of this Advisory Panel. The success of this exposition does not mark the end of our efforts. It will surely spread the wonderful aspects of Japan among many people, including the Japanese people themselves. We will carefully consider how best to make full use of this opportunity to promote these wonders at the grassroots level.
And then there is 2020. Today, I have also received a proposal from Chairman Tsugawa on holding a Japan Exposition in Japan, a plan to have people from around the world come to Japan and experience the beauty of Japan in various regions for themselves, as the culmination of our efforts. I would like to ask the relevant ministries and agencies, led by the Ministry of Education, Culture, Sports, Science and Technology (MEXT) and the Agency for Cultural Affairs, to collaborate and advance every possible effort for this. A moment ago, it was pointed out by Council member Hayashi that Japonismes 2018 might not incorporate the perspective of literature into the project. I hope to work thoroughly to ensure that the same will not happen in 2020, and I ask for everyone’s help with this.
The Tokyo Olympic and Paralympic Games in 2020 will draw interest in Japan from all over the world. I want to use that excellent opportunity to communicate the charms of Japan to the greatest extent possible, and to enable the countless number of people that will visit Japan experience them firsthand. I request the continued guidance of everyone at this Advisory Panel, and for the further cooperation of all relevant companies and organizations. Thank you very much.”
Kickoff Discussion with ‘STEM Girls Ambassadors’
Cabinet Secretariat, Monday, June 25, 2018
[Provisional Translation]
On June 25, 2018, Prime Minister Shinzo Abe attended the Kickoff Discussion with ‘*STEM Girls Ambassadors’ at the Prime Minister's Office.
The Prime Minister said in his address,
“Thank you very much for taking time out of your busy schedules to take part in this opportunity today.
I also thank all of you for introducing yourselves. I believe I found great diversity here. At the same time, I felt the combination of being a student at the Faculty of Engineering at the University of Tokyo and being selected as Miss International Japan 2018 was beyond my imagination. Meanwhile, I was also aware that the notion such that it is impossible is exactly what we call a stereotype.
These days, new products are being developed one after another from unique perspectives of women, such as a vehicle that enables holding children while getting in and out, as well as a ‘Green Smoothie’ that contains one full serving of vegetables with just one pack. Diversity and innovation with unique perspectives of women are extremely important to vitalize the process of innovation in Japan. That said, there have still been few women in the science and engineering fields. For instance, only 27 percent of the students majoring in science are female, and women make up only 15 percent of all engineering students. If this situation does not change, Japan will fall far behind, not only in terms of globalization and innovation, but also in the progression of our society. Today, we have gathered women who can serve as role models for girls in elementary schools, junior high schools, and high schools. I hope your continued efforts to spread your messages about the STEM fields and inspire many girls to work hard, make valuable contributions to society and the world in these fields, and shape their own lives.
It may sound like I am boasting a bit, but during the Abe administration, we have seen an additional 2 million women enter the workforce, and the number of women in executive positions has doubled. This has been achieved within just five years. Anyone who wants to criticize this says that this was all achieved because there were so few women working in these positions to start with, but nevertheless, I would like to increase these numbers even further. We have gathered front runners who are making breakthroughs on this issue, and I think it is extremely important that we continue to break through the walls created by these stereotypes.
I watched the soccer match with Senegal this morning until 2 a.m. I hope that you will all join me in taking on challenges with the spirit of breaking through a high hurdle.”
*Science, Technology, Engineering, and Mathematics
Japan-Turkey Summit Telephone Talk
Foreign Affairs, Thursday, June 28, 2018
Mr. Shinzo Abe, Prime Minister of Japan, had a telephone conversation for approximately 10 minutes commencing at 17:15 p.m. on Thursday, June 28, 2018, with H.E. Mr. Recep Tayyip ERDOGAN, President of the Republic of Turkey. The overview is as follows.
1. In the beginning, Prime Minister Abe extended his congratulations to H.E. Mr. Recep Tayyip ERDOGAN upon his victory in Turkey’s recent presidential election. Prime Minister Abe also said that he expects that the Republic of Turkey will further prosper under H.E. Mr. Recep Tayyip ERDOGAN. In return, H.E. Mr. Recep Tayyip ERDOGAN expressed his gratitude.
2. The two leaders also shared their views on cooperating to further deepen the relationship between Japan and Turkey in a wide range of fields.
Congratulatory Message from Prime Minister Abe to the Prime Minister of Georgia
Foreign Affairs, Thursday, June 28, 2018
Mr. Giorgi Kvirikashvili, Prime Minister of Georgia resigned on June 13 and Mr. Mamuka Bakhtadze, former Minister of Finance, has assumed the post of Prime Minister as his successor on June 20. Following this, on June 28, Mr. Shinzo Abe, Prime Minister of Japan, sent a congratulatory message to Prime Minister Bakhtadze.
Memorial Ceremony to Commemorate the Fallen on the 73rd Anniversary of the End of the Battle of Okinawa
Cabinet Secretariat, Saturday, June 23, 2018
[Provisional Translation]
On June 23, 2018, Prime Minister Shinzo Abe attended the Memorial Ceremony to Commemorate the Fallen on the 73rd Anniversary of the End of the Battle of Okinawa, held in Okinawa Prefecture.
The Prime Minister offered flowers at the National Cemetery for the War Dead in Okinawa, and then, during the memorial ceremony held at the Peace Memorial Park, observed a minute of silence at noon. Following this, the Prime Minister offered a flower and delivered an address. Finally, the Prime Minister offered flowers at the Shimamori Monument.
After offering the flowers, the Prime Minister made the following statement in response to a question regarding the relocation of Marine Corps Air Station (MCAS) Futenma,
“We cannot afford to wait any longer for the total return of MCAS Futenma, which is surrounded by schools and residential buildings, and is said to be “the most dangerous base in the world. We must avoid the continued use of MCAS Futenma. This is the fundamental premise and our common understanding to deal with this issue.
Among the three functions of MCAS Futenma to be relocated, only one are is still being left. We have already realized the relocation of all 15 tanker aircraft stationed in Futenma to MCAS Iwakuni in Yamaguchi Prefecture. Regarding emergency and contingency use, we have already designated it to Self-Defense Force (SDF) air stations in Kyushu. The Osprey aircraft are being maintained in Chiba Prefecture. Through the relocation to Henoko, flight paths will be moved to occur over water and no longer go over schools or residential areas. This will significantly improve safety. It will also greatly reduce noise. The number of houses needing soundproofing will drop from over ten thousand to zero.
In order to achieve the total return of MCAS Futenma as soon as possible, we are moving forward with the relocation in line with relevant laws and the decision of the Supreme Court. From the perspective of safety as well, this will contribute to mitigating the impact of the base. We will continue to engage in sustained efforts to gain the cooperation and understanding of Okinawa Prefecture and the local communities.”
In addition, the Prime Minister said in response to a question by a reporter regarding mitigating the impact of bases on Okinawa
“It is not acceptable that, even now, 73 years after the end of World War II, Okinawa still bears the heavy impact of the bases. I take this issue very seriously. The guarantee of the safety of the Japanese public is a basic premise for the operations of the U.S. forces. Any incidents or accidents must not be tolarated to occur. I have made strong requests directly to President Trump regarding rigorously ensuring the safety of the operation of U.S. forces aircraft. We are working on this issue as a top priority under the basic principle of ensuring the safety of local communities, including those of children.
In addition, the incident that found the day before yesterday in Nago City is a grave problem which could be life-threatening. The police are currently carrying out rigorous investigations. We requested that the U.S. Forces confirm the facts related to this incident and to suspend the use of the suspected shooting ranges for the time being. Moreover, yesterday, I requested the cooperation of U.S. Ambassador Hagerty; consequently, the use of guns in these ranges has been suspended for a period of time. .
We must produce one result after another to mitigate the impact of bases on Okinawa. We realized the return of the Northern Training Area of the U.S. Forces in Okinawa, which had been an agenda for 20 years. This was the biggest single return of lands since the reversion of Okinawa. From this fiscal year, we will soon start to make use of the former site from the West Futenma Housing Area. Furthermore, the relocation of 9,000 U.S. Marines to areas overseas is now moving forward towards realization.. We will continue to advance efforts to mitigate the impact of the bases on Okinawa while paying close attention to the feelings of the local people.”
The inscription of “Hidden Christian Sites in the Nagasaki Region” on UNESCO’s World Heritage List
(Decision at the 42nd Session of the World Heritage Committee of UNESCO) (Statement by Foreign Minister Taro Kono)
Foreign Affairs, Saturday, June 30, 2018
As Foreign Minister of Japan, I am very pleased that today on June 30th (same day local time) at the 42nd Session of the UNESCO World Heritage Committee held in Manama, Bahrain, a decision was made to inscribe on the World Heritage List “Hidden Christian Sites in the Nagasaki Region”, which Japan had nominated as a candidate for the list.
“Hidden Christian Sites in the Nagasaki Region” bears precious evidence of the history of the people and their communities who secretly transmitted their faith in Christianity during the time of prohibition spanning more than two centuries in Japan. I heartily welcome the inscription of this property which tells a very unique history in the world. At the same time, I hope that the inscription this time will attract wider attention from people around the world on this valuable property built by the Hidden Christians in Japan who secretly continued their faith during the ban on Christianity.
We will continue to promote dissemination of the appeal of Japan’s World Heritage sites including “Hidden Christian Sites in the Nagasaki Region” with initiatives that include overseas communication in cooperation with other relevant ministries and agencies.
Inscription of “Hidden Christian Sites in the Nagasaki Region”
(Decision at the 42nd Session of the World Heritage Committee of UNESCO)
Foreign Affairs, Saturday, June 30, 2018
The 42nd Session of the World Heritage Committee being held in Manama, Bahrain, adopted a decision to inscribe “Hidden Christian Sites in the Nagasaki Region” on the World Heritage List.
The Election of Professor Yuji Iwasawa as Judge of the International Court of Justice (ICJ)
Foreign Affairs, Saturday, June 23, 2018
On June 22 (U.S. Eastern Time), the election of a judge of the ICJ was held at the United Nations, and a Japanese candidate, Professor Yuji Iwasawa of the University of Tokyo, was elected. Japan welcomes Professor Iwasawa’s election.
Contributions by a Japanese judge to the ICJ are of critical importance as the ICJ is playing an increasingly prominent role in achieving peaceful settlement of international disputes. The election of Professor Iwasawa indicates the international community’s high expectations for him as a judge of the ICJ and is also a demonstration of its recognition of Japan’s stance of placing great importance to the ICJ.
Japan looks forward to Professor Iwasawa’s success in his endeavors and, at the same time, intends to make more active contributions to the promotion of the rule of law in the international community through further development of the ICJ.
Third Conference on Cooperation among East Asian Countries for Palestinian Development (CEAPAD)
Foreign Affairs, Wednesday, June 27, 2018
On June 27, the third ministerial meeting of the Conference on Cooperation among East Asian Countries for Palestinian Development (CEAPAD) was held in Bangkok, Thailand. The meeting hosted by Thailand was co-chaired by Mr. Taro Kono, Minister for Foreign Affairs of Japan, Mr. Don Pramudwinai, Minister of Foreign Affairs of the Kingdom of Thailand and Dr. Riad Al-Malki, Minister of Foreign Affairs and Expatriates of Palestine.
1 Outline of the Meeting
(1) Time and date: June 27 (Wednesday) from 9:30 a.m. to 3 p.m.
(2) Venue: Dusit Thani Bangkok
(3) Participants: Representatives of 10 countries and regions, and five international organizations (including 6 ministerial-level participants).
Participating countries and organizations: Japan, Thailand, Palestine, Indonesia, Singapore, Brunei, Vietnam, Malaysia, Egypt, South Korea, the Islamic Development Bank (IDB), the U.N. Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), World Bank, the League of Arab States, and the office of the Quartet.
(4) Objective: CEAPAD is a consultative framework for Asian countries to consider effective assistance to the Palestinians by mobilizing their own knowledge and resources. In the third ministerial meeting, the participants reviewed the assistance by respective countries and expressed or reaffirmed future assistance. The participants also reaffirmed the importance of UNRWA and expressed their support.
2 Outline of Discussions
(1) At the opening ceremony, following the opening remarks by Deputy Prime Minister and Minister of Justice of the Kingdom of Thailand H.E. Mr. Juntong, Thai Foreign Minister H.E. Mr. Don explained their country's Palestinian aid and expressed his high appreciation for the role of CEAPAD. Foreign Minister Kono stressed the significance of CEAPAD and explained Japan's assistance to the Palestinians (see 3. below) and mentioned the importance of UNRWA. Palestinian Foreign Minister H.E. Dr. Al-Malki expressed his gratitude for the Asian assistance to Palestine including CEAPAD saying that it contributes to the Palestinian state building.
(2) At the meeting, many representatives of the participating countries and organizations made the following remarks and expressed their intention to provide the Palestinians with assistance on the basis of their respective strengths:
The role of Thailand, the host country was highly praised. Japan's initiative of launching CEAPAD was highly appreciated.
The economic development of Palestine is indispensable in achieving Middle East peace based on a two-state solution. Human resources development, capacity building and private-sector development are key factors for the development. Assistance will be provided in areas such as ICT, agriculture and tourism.
UNRWA's activities are not only for assisting the Palestinian refugees but also essential for the stability in the region.
(3) After a luncheon hosted by Thai Foreign Minister Don, a joint press conference by Japan, Thailand and Palestine was held, where a joint statement adopted at the meeting was distributed.
3 Japanese Initiatives
Minister Kono explained the Japanese assistance to Palestine as follows:
(1) Japan has implemented capacity building for about 1500 Palestinians since CEAPAD 2. Japan has implemented assistance of about 2 billion USD to Palestine since 1993.
(2) Japan has recently decided to provide about 15 million USD for UNRWA, considering its important role.
(3) Japan will work on upgrading "Corridor for Peace and Prosperity" initiative including developing Jericho Agro-Industrial Park (JAIP), enhancing ICT sector in Palestine, and facilitating logistics in the West Bank.
4 Significance and Evaluation
(1) Supported achieving peace in the Middle East based on a "Two-State Solution," by strengthening support for Palestine, utilizing resources of East Asian countries and contributing to creating an environment in which Palestine can have hope.
(2) Reaffirmed the importance of the activities of UNRWA and sent a message of political support for UNRWA as it is financially in a difficult position.
(3) Strengthened the cooperation between Japan and Asian countries, and promoted internationally Japan's unique approach to peace in the Middle East in parallel with the "Corridor for Peace and Prosperity" initiative, in order to strengthen the presence of Japan.
(4) Reaffirmed participants' intention to strengthen the CEAPAD secretariat and to hold meetings regularly. Agreed on the activation of CEAPAD.
Meeting between Foreign Minister Kono and ASEAN’s Secretary-General Dato Lim Jock Hoi
Foreign Affairs, Tuesday, June 26, 2018
On June 26, commencing at 10:20 a.m. for approximately 25 minutes, Mr. Taro Kono, Minister for Foreign Affairs, held a meeting with H.E. Dato Lim Jock Hoi, Secretary-General of ASEAN, at the ASEAN Secretariat in Jakarta. The overview of the meeting is as follows.
Minister Kono explained Japan's position on enhancing the relationship with ASEAN towards the ASEAN-related Foreign Ministers' Meetings to be held in July and the ASEAN-related Summit Meetings to be held in November in 2018. In this context, Minister Kono noted that this year marks the 45th Anniversary of ASEAN-Japan Friendship and Cooperation, and introduced the ASEAN-Japan Music Festival to be held in Japan in October. Furthermore, Minister Kono stated that Japan would like to further cooperate with ASEAN under the "Free and Open Indo-Pacific Strategy".
Secretary General Dato Lim welcomed the 45th Anniversary of ASEAN-Japan Friendship and Cooperation and expressed his appreciation to Japan's contribution to ASEAN so far including through Japan-ASEAN Integration Fund(JAIF). In addition, Secretary General Dato Lim stated that he would like to further strengthen the relationship with Japan.
Both sides exchanged views on regional situations including North Korea, South China Sea and the situation in Rakhine State in Myanmar. They also confirmed that Japan and ASEAN would continue to cooperate towards conclusion of the negotiation on Regional Comprehensive Economic Partnership (RCEP) by the end of this year.
Japan-Palestine Foreign Minister’s Meeting
Foreign Affairs, Tuesday, June 26, 2018
On June 26, commencing at 6:30 p.m. (local time) for approximately 50 minutes, Mr. Taro Kono, Minister for Foreign Affairs, on his visit to the Kingdom of Thailand, held a meeting with H.E. Dr. Riad Malki, Minister of Foreign Affairs and Expatriate of Palestine, on the margin of the Third Ministerial Meeting of the Cooperation among East Asian Countries for Palestinian Development (CEAPADIII). The overview is as follows.
1. Minister Kono expressed his gratitude for Minister Malki’s contribution to the Ministerial Meeting of “Corridor for Peace and Prosperity” held recently in Dead Sea, Jordan and said that holding CEAPADIIIreflected the Japanese commitment to support Palestine which is in a difficult situation.
2. In response, Minister Malki highly appreciated the Japanese initiatives including “Corridor for Peace and Prosperity” and CEAPAD and expressed his gratitude for Japan’s support for the economic development in Palestine. Minister Kono stated that Japan will continue to support Palestine through the Palestinian refugees through UNRWA and cooperation in the ICT sector.
3. The both ministers also had discussions on peace in the Middle East and reaffirmed that they will continue to cooperate in making progress on the issue.
Japan-Indonesia Foreign Ministers’ Meeting
Foreign Affairs, Monday, June 25, 2018
On June 25 (Monday), commencing at 10:30 a.m. (local time) for approximately one hour and 35 minutes, Mr. Taro Kono, Minister for Foreign Affairs, who is currently visiting Indonesia, held a foreign ministers' meeting with H.E. Ms. Retno L.P. Marsudi, Minister of Foreign Affairs of the Republic of Indonesia. The overview of the meeting is as follows. Note that for the first 40 minutes of the meeting a small group meeting was held.
Furthermore, after the meeting ended, Masafumi Ishii, Ambassador of Japan to Indonesia, and H.E. Mr. Desra Percaya, Director-General of Asia Pacific and African Affairs, Ministry of Foreign Affairs of Indonesia signed an exchange of notes concerning the grant aid "The Programme for the Development of Fisheries Sector in Outer Islands" for Indonesia in the presence of the two foreign ministers.
Minister Kono stated that he feels overjoyed to be able to visit Indonesia and expressed his condolences to the victims of the shipwrecking in Lake Toba last week. Furthermore, Minister Kono congratulated Indonesia on its recent election as a non-permanent member of the United Nations Security Council, and stated that this year, the 60th anniversary of the establishment of diplomatic relations, many commemorative events are being implemented by the two countries, and he wanted to continue to work together in celebrating the 60th anniversary of Japan-Indonesia diplomatic relations. In response, Foreign Minister Retno welcomed the visit of Minister Kono to Indonesia, positioned this meeting as the Sixth Indonesia-Japan Strategic Dialogue, and stated that she intended to work together with Minister Kono to further develop bilateral relations.
The two ministers confirmed that they will continue their bilateral cooperation in fields such as politics and security, cooperation for economic prosperity, and exchanges and education. Furthermore, Minister Kono explained his policy of enhancing cooperation under the "Free and Open Indo-Pacific Strategy" and Foreign Minister Retno welcomed this.
The two ministers exchanged views on regional affairs, including the North Korea issue and the South China Sea. Regarding the North Korea issue, Minister Kono explained that it is necessary to urge North Korea to take concrete actions based on the outcomes of the U.S.-North Korea Summit Meeting, and the two ministers agreed that they continue to strictly implement the UN Security Council resolutions. Furthermore, Minister Kono sought the understanding and cooperation of Minister Retno for early resolution of the abductions issue.
Japan-Canada Foreign Ministers' Telephone Talk
Foreign Affairs, Friday, June 22, 2018
On June 22, commencing at around 7 a.m. (Bangkok time; around 9 a.m. on June 22, Japan time) for approximately 10 minutes, Mr. Taro Kono, Minister for Foreign Affairs, who was visiting Bangkok, the Kingdom of Thailand, held a telephone talk with the Honourable Chrystia Freeland, Minister of Foreign Affairs of Canada. The overview of the telephone talk is as follows.
The two foreign ministers exchanged views on the outcome of the U.S.-North Korea Summit Meeting, and appreciated the meeting as one step forward towards the comprehensive resolution of outstanding issues of concern relating to North Korea.
The two foreign ministers affirmed that Japan and Canada would work closely in order to realize the complete, verifiable and irreversible dismantlement of all weapons of mass destruction, including biological and chemical weapons, and ballistic missiles of all ranges, by North Korea.
In addition, the two ministers shared the view that it is important to continue the full implementation of relevant United Nations Security Council resolutions. Minister Kono expressed gratitude for the recent deployment of a Canadian patrol aircraft to counter North Korea's sanctions evasion, including so-called "ship-to-ship transfers". The two ministers shared the recognition that they would continue to cooperate to address the issue.
The Foreign Ministers also exchanged views on the trade issue.
Summary of Opinions at the Monetary Policy Meeting on June 14 and 15, 2018
Bank of Japan, Monday, June 25, 2018
I. Opinions on Economic and Financial Developments
Economic Developments
Japan's economy is expanding moderately, with a virtuous cycle from income to spending operating. Going forward, it is likely to continue expanding, mainly against the background of highly accommodative financial conditions and the underpinnings through government spending.
Japan's economy is expanding moderately. With the output gap improving steadily, firms have been working on expanding the production capacity of their goods and services. It is important that such efforts continue, with somewhat tight supply-demand conditions being maintained.
Although Japan's GDP growth rate for the January-March quarter of 2018 registered negative growth for the first time in nine quarters, this largely reflects temporary factors such as irregular weather. Firmness has been seen primarily in exports and private consumption since April, and the GDP growth rate is expected to return to positive territory.
Japan's economy is expanding moderately. However, it is necessary to carefully monitor future developments, as some consumer sentiment indicators have been relatively weak of late and uncertainty regarding overseas economies recently has been heightening somewhat.
The effects of the U.S. protectionist trade policy on the global economy warrant close attention. Other concerns include the political situation in southern Europe and volatile movements in some emerging markets, although their effects on the global economy have been limited at this point.
Prices
The year-on-year rate of change in the consumer price index (CPI) is likely to continue on an uptrend and increase toward 2 percent, mainly on the back of an improvement in the output gap and a rise in medium- to long-term inflation expectations.
There has been an expansion in supply capacity such as through reviewing business models, with dissipation of the negative hysteresis that arose as a result of the past economic downturn. In the short term, such expansion in supply capacity has been working in the direction of easing the upward pressure on prices associated with an increase in demand.
Although the unemployment rate stands at 2.5 percent, the inflation rate has not been rising. In addition, the number of those entering the labor market has been increasing in tandem with labor shortages. Judging from this situation, the structural unemployment rate may be around 2 percent.
If wages do not rise in line with inflation, this would pose a burden on people. Close attention should be paid to developments in labor productivity and real wages, while taking into account mainly the effects of a reduction in overtime work hours under working-style reforms.
In Japan, inflation expectations tend to decline when the actual inflation rate decreases. In addition, sluggishness in the economic growth rate diminishes the improvement in the output gap. Although the recent weakness in indicators is temporary and is projected to recover, it warrants careful attention.
The upward pressure on wages has been weak despite the increased tightness in the labor market, and firms also have remained cautious in their wage setting. Therefore, it is likely that achieving the price stability target will still take time. At the next MPM, when the July Outlook for Economic Activity and Prices (Outlook Report) will be published, it will be necessary to deepen analysis and discussion on prices.
In view of the next Outlook Report, it is necessary to thoroughly analyze once again the background to the recent weakness in wages and prices as well as its effects on inflation expectations.
In judging the inflation momentum, it is important to examine the aggregate supply-demand balance and firms' behavior comprehensively from every perspective.
Developments in the output gap and inflation expectations are important in judging the momentum toward achieving the price stability target. The output gap implies an excess demand but it is not clear whether the gap has been improving. Also, inflation expectations have been sluggish. Thus, the momentum cannot be judged as having strengthened recently.
The momentum toward achieving the price stability target of 2 percent is maintained, as evidenced by the year-on-year rate of increase in prices of dining-out and delivery services accelerating steadily, mainly on the back of a rise in wage costs.
II. Opinions on Monetary Policy
Considering that there is still a long way to go to achieve the price stability target of 2 percent, it is appropriate to pursue powerful monetary easing with persistence under the current guideline for market operations in order to firmly maintain the momentum toward achieving the price stability target.
The Bank should continue with the current monetary policy stance with the aim of persistently encouraging the virtuous cycle to take hold and achieving the price stability target.
As there is still a long way to go to achieve the price stability target, the Bank should persistently continue with powerful monetary easing in a sustainable manner.
Since the reason for the sluggishness in prices is unlikely to be merely a shortage of demand, it is not appropriate to adopt a policy that would forcibly push up demand in a short period of time. It is important to persistently maintain the current accommodative financial conditions, and to this end, the Bank should conduct monetary policy by giving due consideration to its sustainability while making sure that severe distortions do not arise in the economic and financial conditions.
Financial institutions are faced with a rise in unrealized losses on securities and risks of impairment losses at branches with low profitability. In continuing with the current monetary policy, it is necessary to take into account the two time frames in which its positive effects and side effects appear and consider the possible countermeasures against the side effects before they materialize.
Some argue that a low interest rate impairs the functioning of financial intermediation through a deterioration of financial institutions' profitability, and thereby undermines monetary easing effects. The core function of financial intermediation is taking deposits and lending funds while taking into account the probability of repayments of the loans. Considering that the average loan-to-deposit ratio of domestic banks is 70 percent or less and the rest is invested in bonds, there may be room for improvement in banks' financial intermediation function.
In the recent Japanese government bond (JGB) market, market participants' responsiveness to developments in mainly U.S. interest rates has been decreasing, and there have been days when inter-dealer transactions of newly issued bonds were not concluded. It is important to conduct market operations with a view to maintaining the functioning of financial markets as much as possible.
The purchases of risky assets including exchange-traded funds (ETFs) are carried out as part of the policy package aiming at achieving the price stability target, and their policy effects and the possible side effects should continue to be examined from every angle.
In other advanced economies where inflation of around 2 percent is a given, nominal growth rates of around 3 to 4 percent have been achieved. The price stability target of 2 percent demonstrates to the global community Japan's determination to achieve the same level of nominal growth as other advanced economies.
Considering that inflation expectations are not rising easily, it is desirable, when necessary, to make efforts to improve communication and enhance the commitment in a broad sense toward achieving the price stability target of 2 percent, with a view to managing the expectations of private entities.
Since the inflation rate has not been rising recently, inflation expectations have been sluggish. There needs to be an additional commitment that influences inflation expectations. Inflation expectations have been more or less unchanged despite the fact that the description on the timing of reaching around 2 percent inflation was deleted from the April 2018 Outlook Report. This may indicate that the current commitment is not functioning sufficiently.
The Bank's commitment to achieving the price stability target of 2 percent at the earliest possible time has not changed at all, although the description related to the outlook for prices was reviewed. Market developments since the previous MPM suggest that this review was not perceived as a weakening of the Bank's commitment.
It is of great significance that the commitment to the joint statement of the government and the Bank on overcoming deflation and achieving sustainable economic growth was reconfirmed upon the reappointment of Governor Kuroda. It is important to gain understanding that the government and Bank's commitment specified in the joint statement is firm.
III. Opinions from Government Representatives
Ministry of Finance
The Basic Policies on Economic and Fiscal Management and Reform 2018 is scheduled to be decided by the Cabinet swiftly upon approval of the ruling party today.
The Basic Policies presents concrete and highly effective plans for achieving fiscal soundness, and the government will continue to work toward achieving both economic revitalization and fiscal soundness.
The government expects the Bank to continue to work toward achieving the price stability target under "Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control" in light of developments in economic activity and prices, as well as financial conditions.
Cabinet Office
The government will compile today the Basic Policies on Economic and Fiscal Management and Reform 2018 as well as the Investments for the Future Strategy 2018. The Basic Policies will specify that it will work on "Human Resources Development" and "Supply System Innovation," proceed with accepting foreign personnel with specialized and technical skills in consideration of the acute labor shortage, and aim at achieving a primary balance surplus for the national and local governments by fiscal 2025.
The government expects the Bank to steadily pursue monetary easing toward achieving the price stability target, in light of developments in economic activity and prices, as well as financial conditions.
Suspicion of illegal ship-to-ship transfers of goods by YU PHYONG 5, North Korean-flagged tanker, and small vessel of unknown nationality
Foreign Affairs, Wednesday, June 27, 2018
In the morning of June 21 2018, a AOE 'HAMANA' (Replenishment at Sea Squadron 1 : Sasebo) of Japan Maritime Self-Defense Force found that YU PHYONG 5（IMO number：8605026）, North Korean-flagged tanker, was lying alongside a small vessel of unknown nationality on the high sea (around 440km south-southeastern offshore of Shanghai ) in the East China Sea.
In the morning of June 22 2018, a AOE 'HAMANA' found that YU PHYONG 5, North Korean-flagged tanker, was lying alongside a small vessel of unknown nationality that might be identical with a small vessel found previous day, on the high sea (around 450km south-southeastern offshore of Shanghai) in the East China Sea. After that, the small vessel of unknown nationality flew a flag that seemed like Chinese-flag.
Judging from the fact that the two vessels lay alongside each other and connected hoses on both days, both vessels could have been engaged in some type of activity. Following a comprehensive assessment, the Government of Japan strongly suspects that they conducted ship-to-ship transfers banned by UNSCR.
In March, 2018, the Security Council Committee established pursuant to Resolution 1718 designated YU PHYONG 5 as a vessel subject to assets freeze and prohibited from port entry.
Japan notified the Security Council Committee of this incident and shared information with related countries. Japan also expressed its interest to China which could have relation to small vessel of unknown nationality.
Statement by Minister Aso on re-election of Dr.Mikuriya to the Secretary General of the WCO
Ministry of Finance, Saturday, June 30, 2018
Today, Dr. Kunio Mikuriya, the current Secretary General of the World Customs Organization (WCO) and Japan’s candidate for a third term, was reelected at the annual WCO Council Session held in Brussels, Belgium.
In a contemporary society where the significance of global-wide counter-terrorism efforts and trade facilitation is well-recognized, the WCO’s role in promoting border security and efficiency in customs duty procedures is gaining more and more importance.
Dr. Mikuriya has demonstrated his outstanding abilities and leadership since assuming the office of Secretary General in 2009. I am convinced that his reappointment resulted from the high appreciation by all WCO members for his significant achievements and capacity as well as the contributions made by Japan to the WCO.
I expect the WCO, with Dr. Mikuriya’s continued leadership, to make contributions to the economic growth of Japan and the world through development of global trade. I also expect that Dr. Mikuriya’s reappointment to the Secretary General will bring further enhancement of Japan’s position in the international community.
Japan will host the G20 summit of leading nations and Rugby World Cup in 2019 and the Olympic and Paralympic Games Tokyo in 2020. Under those circumstances, we need to further strengthen cooperation for counter-terrorism and other various areas between Customs administrations. Japan will make continued efforts to strengthen the relationship with the WCO and further promote international cooperation in the areas of Customs.
The 1st Regional Promotion Seminar in fiscal year 2018 (Results)
Foreign Affairs, Wednesday, June 27, 2018
On June 21, the Ministry of Foreign Affairs hosted the 1st Regional Promotion Seminar in fiscal year 2018 jointly with Hagi City (Yamaguchi Prefecture), Niigata Prefecture, the Gotō Islands (Nagasaki Prefecture) and Yabu City (Hyōgo Prefecture) at Hotel Chinzanso Tokyo and about 170 people including around 60 foreign diplomats in Japan participated in the seminar.
In the first part of the seminar, Hagi City made a presentation on Hagi Pottery and Natsumikan Oranges, Niigata Prefecture introduced the world’s first academic discipline about sake, “Sakeology”, the Goto Islands promoted the hidden Christian sites in Nagasaki region and Yabu City made a presentation on Asakura Sansho, a magic spice.
In the latter part of the seminar, Hagi City offered a special opportunity for visitors to experience pottery painting, visitors also enjoyed tasting 12 brands of sake at the Niigata booth area, the Goto Islands promoted their delicious local foods such as Goto hand-stretched Udon noodles and tuna Sashimi and Yabu City offered Calligraphy live performance on the stage and promoted Asakura Sansho and yuzu citrus products at its booth area.
This seminar contributed to enhancement of foreign diplomats’ understanding for each region of Japan and networking between the local governments and the diplomatic corps.
Japanese-Style ‘Kaizen’ Spreads in Africa; Handbook Near Completion
JICA, Monday, June 25, 2018
In Africa, where a rapid increase of population and job creation is an issue, enhancing productivity and competitiveness is an immediate challenge.
Kaizen, a Japanese management approach of continuous improvement to achieve enhanced quality and productivity, may prove useful in this effort. Kaizen was originally developed during the post-war period in Japan, where it supported the high growth of the Japanese manufacturing sector. It is a participatory approach that places importance on human resource development.
"The Kaizen Handbook," a guidebook for African practitoners on Kaizen dissemination and human resource development, is near completion. It will be unveiled at the Kaizen Annual Conference to be held in South Africa in July with more than 100 people from all over the world attending.This article discusses recent trends in Kaizen.
JICA President Kitaoka Visits Hawaii: 150th Anniversary of Japanese Emigration Celebrated in Hawaii
JICA, Tuesday, June 26, 2018
The 59th Convention of Nikkei & Japanese Abroad (held by the Association of Nikkei & Japanese Abroad and supported by JICA) was held on June 6-7 in Honolulu. Prince Akishino and his wife, Princess Kiko attended the event. Other attendees included Senior Vice‐Minister for Foreign Affairs Masahisa Sato, Consul General of Japan in Honolulu Koichi Ito and JICA President Shinichi Kitaoka.
This convention, which brings together in one place Nikkei people living outside Japan, is an occasion for informing Japan about the situations in various countries with Japanese emigrant communities and for deepening international exchange, understanding and goodwill while promoting better understanding of Japan among other countries. The event usually is held in Tokyo, but to celebrate the 150th anniversary of the beginning of Japanese group emigration, which began in 1868, it was held in Hawaii, the first emigrant destination.
Mr. Kitaoka gave a commemorative address at the beginning of the convention on June 6, taking up the example of Kiyoshi Kiyosawa, who after succeeding as an emigrant to the United States, also was successful as a foreign policy critic in Japan before WWII. Mr. Kitaoka pointed out that the source of Mr. Kiyosawa's success was his experiences as an emigrant who cut his own path.
Mr. Kitaoka also mentioned that after Japan gave material support to Nikkei people interned during WWII, Nikkei people returned the favor after Japan lost the war by donating powdered milk, clothing and other items as Licensed Agencies for Relief in Asia (LARA) assistance. To sympathize about one another is the starting point of international cooperation, he said. Mr. Kitaoka said he wants to continue deepening JICA's ties to Nikkei communities, of course, but also to increase the number of pro-Japanese people, including non-Nikkei people.
Mr. Kitaoka wrapped up his speech by recalling the Meiji Restoration 150 years ago and saying it's time for Japan to begin another dynamic journey and make overseas Nikkei people proud of their ancestral country.
After panel discussions and other programs, the 59th Convention of Nikkei & Japanese Abroad concluded with an affirmation that it would promote networking among Nikkei museums in Japan and abroad and strengthen support for Nikkei communities in Japan, as well as declare June 20, the day the first Japanese emigrants arrived in Hawaii, to be “International Nikkei Day”.
On June 7, The Gannenmono 150th Anniversary Commemoration and Symposium was held by the Gannenmono Committee*. About 300 Nikkei people from 15 countries gathered for the events.
Just as Nikkei people in various countries have built trust in their local communities and the international community over the course of multiple generations, JICA will strengthen its development cooperation and its joint endeavors with diverse stakeholders, in keeping with its vision set forth last year of "Leading the world with trust."
* The Gannenmono Committee was formed by twenty organizations representing Nikkei American communities in Hawaii that make up what is known as the Kizuna Group, a Nikkei organization in Hawaii.
‘Viva Latin America! Deepening Ties With Japan’ Vol.3: Making "Automobiles" the Pillar of the Economy: The Shape of Cooperation in the Semi-developed Country Mexico
JICA, Thursday, June 28, 2018
With a population of more than 100 million, Mexico is Central America's largest country. This year marks the 130th anniversary of the conclusion of the Japan-Mexico Treaty of Amity, Commerce, and Navigation that established diplomatic relations between the two countries. Signs advertising Toyota, Mazda, Honda and other Japanese automobile manufacturers line the streets in the State of Guanajuato in central Mexico. The Japanese greeting yokoso ("Welcome") is even mixed in with Spanish. Many of these signs were erected in the past few years. Over the past decade, the number of Japanese companies in Mexico has tripled to over 1,100, with the number of automobiles produced growing to the level of 4 million per year, seventh highest in the world. In that context, JICA has begun cooperation specific to automobiles, the pillar of the Mexican economy. We would like to introduce you to a cooperation setting that could only happen in semi-developed countries.
Collaboration with Japanese Companies for Human Resources Development; Dispatching "Teachers" to Vocational High Schools
In February, at a technical high school in the State of Guanajuato, Takato Shuhama, a lecturer at Nissan Motor's Nissan Learning Center Site Management School, worked face-to-face with Mexican teachers.
"At a manufacturing site, the key is to streamline, reducing the amount of time required for work even by one second." Everyone in attendance fervently wrote down Shuhama's words. They were teachers at the high school, trainees in JICA’s "Project for Human Resource Development for the Automotive Industry in El Bajio of Mexico." On this day, they learned about ways to reduce waste on the manufacturing line and defective products.
In recent years, good access to North American markets, the North American Free Trade Agreement (NAFTA), and other factors have created a context for expanding investment in Mexico's automobile industry. However, the percentage of parts procured locally by Japanese companies is low, at an estimated 10% to 30%, and a lack of technical expertise prevents Mexican companies from meeting quality standards. Technological improvements at Mexican companies lead to reduced costs and shorter lead times that enable local Japanese companies to expand production. Accordingly, JICA has worked since 2015 to prepare the soil for human resources development through training of teachers from four technical high schools in three states in Mexico.
Technology Support at Increases Transactions at 80percent of Local Companies
In addition to training at vocational high schools, JICA provides technical guidance to local companies. For three years starting in 2012, Japanese specialists were dispatched to 27 Mexican parts manufacturers. The companies adopted "Kaizen" as a way to improve quality and productivity. As a result, approximately 80percent of the companies were able to establish new transactions with Japanese companies. JICA is restarting this technical guidance in June this year, and plan to implement it at approximately 120 Mexican companies and other organizations over a five-year period.
Further, to facilitate the enhancement of corporate support by public agencies, JICA has invited a total of 20 Mexican governmental representatives to Japan up to this point, taking them to Toyota's plant, the offices of the Miyagi Prefectural Government, which is working hard on revitalizing the automobile industry, and other locations. After returning to Mexico, they have been working on the formulation of policies for public support centered on Kaizen.
130 Years of Diplomacy: Toward Further Economic Partnerships
Since the 1990s, JICA has continued to stimulate small and medium-sized companies and supporting industries in Mexico, and to provide technical cooperation in for the manufacturing of plastic, electronic products, and other products. As Mexico becomes a semi-developed country, the key will be gaining international competitiveness. Efforts focused on the automobile industry to expand production by Mexican and Japanese companies could be said to be the shape of cooperation with an eye to the future of the semi-developed country. We will continue working toward Mexico's sustained growth, and becoming a partner in reducing poverty and disparity in the Central and South American region.
