Address by Prime Minister Abe at the Seventy-Third Session of the United Nations General Assembly
Foreign Affairs, Tuesday, September 25, 2018
Mr. Chairman, ladies and gentlemen,
I have been accorded the privilege of continuing to serve as Japan's helmsman for the next three years. As I address the General Assembly today for the sixth consecutive year, I do so with a feeling of renewed resolve.
In the three years to come, I will do my very best to strengthen the free trade system. I will likewise do everything in my power to clear the postwar structure from Northeast Asia.
Serving as a flag bearer for free trade
In my view, the Japanese people have eagerly hoped for their national leaders to serve as flag bearers for free trade. This is because after the war, Japan itself was a nation that enjoyed remarkable growth, basking in the advantages of trade as the beneficiary of a free and open economic system.
The free trade system enabled the countries of Asia, one after the other, to achieve take-off and fostered the middle class in each of these countries. In the background was the large-scale direct investment Japan has made in these countries since the 1980s.
In all these cases, this was possible thanks to the international economic system being rules-based, free, and open.
Should Japan, the country that reaped the greatest benefits of all under this system, ever fail to support maintaining and strengthening that system, who else should we wait for to rise in support of it? Japan's responsibility is tremendous indeed.
That is also Japan's mission, rooted in its own history.
Other than coal that supported modern Japan's industrialization, our nation has had no other resources to speak of. But upon devoting itself to reaping the blessings of trade, post-war Japan succeeded in realizing growth that was called a miracle, even though it lacked resources.
The very first country to prove through its own experience the principle that exists between trade and growth -- a principle that has now become common sense -- was Japan. Japan has now taken on the mission of imparting to the world the benefits of trade.
I have at times risen above intense debates domestically, waving the flag of free trade. There has been no greater joy for me than when TPP11, took final shape and was quickly approved by our Diet. In addition, Japan and the European Union have signed an Economic Partnership Agreement that is of a scale and scope worthy of special mention in world history.
But that said, we must not be complacent. I must drive my efforts up a notch, aiming still farther into the distance.
In addition to Japan's commitment to the World Trade Organization, which is a given, I will make all-out efforts towards negotiations on the "RCEP," which will give rise to an enormous free-trade area in East Asia.
And, more than anything else, I value our new trade talks with the United States, dubbed the "FFR" trade talks.
For many a year, both Japan and the United States have led the free trade system forward internationally. As evidence of that, Japan's direct investment has created employment in the U.S. for some 856,000 people nationwide, a quantity second only to what the U.K. has brought about.
At present, in contrast to the 1.74 million vehicles exported annually from Japan to the United States, the number of Japanese cars manufactured within the United States is 3.77 million.
This is a win-win situation at its finest. I intend for Japan and the United States to continue this kind of relationship between us.
But this is hardly unique to our bilateral ties with the U.S. Under the flag of free trade, Japan has with any country and any region built up relations in which we each can be of assistance to the other. We will continue to do this going forward.
In order to expand free and fair economic rules befitting to the 21st century into the vast region extending from Asia and the Pacific to the Indian Ocean, the countries that have created the system and reaped the greatest benefits from that system -- that is to say, countries like Japan -- must lead the effort. That's what I believe.
Clearing away Northeast Asia’s postwar structure
Just a few moments ago I stated that I will do everything in my power to clear the long-standing postwar structure from Northeast Asia.
I am now, together with President Vladimir Putin, working to get the deadlock between our countries that has seen no movement for more than 70 years back into motion again. President Putin and I met at the beginning of this month in Vladivostok. This was our 22nd summit meeting. I will meet him again in the near future.
We must resolve the territorial issue that lies between Japan and Russia and conclude a peace treaty between our two countries. Once a Japan-Russia peace treaty comes into existence, the peace and prosperity of East Asia will attain a more certain cornerstone.
Ladies and gentlemen, from this very location at this time last year, I strongly urged North Korea to resolve its abductions, nuclear, and missile issues. As someone who appealed for the full implementation of all relevant UN Security Council resolutions, I pay the greatest interest in changes of North Korea.
North Korea is now at a crossroads at which it will either seize, or fail to seize, the historic opportunity it was afforded. North Korea has both untapped natural resources and a labor force whose productivity can be greatly enhanced.
Japan's policy of seeking to settle the unfortunate past and normalize its relations with North Korea once the abductions, nuclear, and missile issues are resolved will not change. We will be unstinting in our assistance to unleash the potential North Korea holds.
However, I must reiterate one thing time and time again. We will bring about the return of all Japanese abductees. I am determined to make this a reality.
In order to resolve the abductions issue, I am also ready to break the shell of mutual distrust with North Korea, get off to a new start, and meet face to face with Chairman Kim Jong-Un. At present, nothing has been decided regarding a Japan-North Korea summit meeting, but if we are going to hold one, then I am determined it must be a meeting that contributes to the resolution of the abductions issue.
I wish to comment briefly on Japan-China relations as well. The mutual visits at the leaders' level that began this year will continue, with me visiting China next month, to be followed by my inviting President Xi Jinping to Japan, thereby adding to our bilateral relations and to the entire region another definitive axle for stability.
Promoting the “Free and Open Indo-Pacific Strategy”
When the confrontational structure is cleared out of Northeast Asia, the maritime corridor running from the Arctic Ocean to the Sea of Japan, through the Pacific Ocean to the Indian Ocean will become increasingly important.
Japan, located directly above it and also possessing a vast exclusive economic zone, hopes for stability and peace in these waters as well as in the airspaces above them.
The countries of ASEAN lie at the "confluence of the two seas" -- the Pacific and Indian Oceans. And it was the forerunners living in what we now call the Pacific island countries who in eras long past crossed these two oceans to introduce products to faraway eastern Africa.
What I call the "Free and Open Indo-Pacific Strategy" derives from our desire to preserve the blessings of open seas, together with these very countries, as well as the United States, Australia, India, and others, and indeed, all countries and peoples who share the same intent.
What must control our sea and air spaces that are broad and wide is the rule of law, and the rules-based order, which are in turn backed by solid institutions. Hence my strategy.
The other day, foreign students in Japan proudly returned to their home countries of Malaysia, the Philippines, and Sri Lanka with new academic degrees in hand. These degrees were master's degrees that can only be obtained in Japan.
They are master's degrees in maritime safety and security policy. In addition to the students the Japan Coast Guard sends to the program were senior officials from various coast guard authorities in countries all around Asia. The students who graduated the other day were in the third cohort of students to enter the program.
Maritime order is not a matter of power, but a matter of the rule of law and one that is rules-based. Every year a class learning such an everlasting truth and taking it as a guiding principle for their lives will head out from Japan to the seas. This is very promising indeed. Cultivating those who will protect and defend a free and open Indo-Pacific is, precisely, Japan's noble mission.
Inviting teachers from Gaza
Ladies and gentlemen, as I was preparing this address, I created a new but modest program.
At the beginning of 2019, we will invite to Japan approximately ten elementary and junior high school teachers from the Gaza Strip. This will be the first such group and we will continue to invite teachers annually.
Teachers who find themselves in Japan, a place so different for them both culturally and historically, will naturally put the situation in Gaza and the Middle East into a wider perspective, enabling them to see their own hometowns and region anew. Such an experience should somehow work in a unique way as a solace to them.
It goes without saying that for peace, efforts must be made on both sides. But hopefully this program of ours will impart a means of hope to the teachers from Gaza and the children in their care.
Once 20 years pass, there will be 200 teachers who will have experienced visiting Japan. The number of students taught by them will number in the thousands. I look forward to that day.
Japan and the Japanese looking intently at the future
The goal of Japanese diplomacy, which I conveyed to you to some extent today, is to make the future of the world and the region something that is certain.
In addition, what I wish is for the young people who will live in the Japan of the future to vigorously take on challenges. The duty of our generation is to create an environment that facilitates this.
It is as if a new breeze is now about to blow in Japan.
From the end of April next year into the beginning of May, His Majesty the Emperor will abdicate and His Imperial Highness the Crown Prince will accede to the imperial throne. In fact this is the first imperial succession in 200 years to accompany the abdication of the current Emperor. In October we will welcome guests of honor from around the world who will come to extend their good wishes.
Next June, Japan will host the G20 summit. As the chair of the meeting, I intend to lead the discussions about issues facing the international community, including the state of the global economy and environmental issues.
Soon after, in August, Japan will host the Tokyo International Conference on African Development, or "TICAD." This will be the seventh time to hold this summit, which Japan has continued to hold with great care since 1993 and which has earned unwavering trust from national leaders all across Africa. For example we will discuss with each other "universal health coverage," whose importance I have highlighted a number of times.
And lest we forget, next year Japan hosts the Rugby World Cup, and in 2020, Tokyo hosts the Olympic and Paralympic Games. Our eyes will continue to be fixed on the future.
When Japan and the Japanese people fix their gaze squarely on the future, Japan increases in vitality. Japanese looking intently at the future will become people who determinedly take on responsibility for achieving the SDGs. Such next-generation Japanese youth will work commendably as flag bearers for the "UN spirit." I am absolutely certain of that.
In closing, I will state that in light of the lack of progress in reforming the Security Council, the significance of the United Nations in the 21st century world is already being starkly questioned.
But that is precisely why Japan will never let up in its contributions to the United Nations. I will end my address with a pledge that Japan, together with Secretary-General Guterres, will push forward with the reform of the Security Council and the reform of the United Nations.
Thank you very much.
Visit to the United States: Third Day
Cabinet Secretariat, Tuesday, September 25, 2018
[Provisional Translation]
On September 25, 2018 (local time), Prime Minister Shinzo Abe, who is visiting New York in the United States of America, held a meeting with H.E. Mr. Moon Jae-in, President of the Republic of Korea (ROK).
In the afternoon, Prime Minister Abe held a meeting with H.E. Mr. António Manuel de Oliveira Guterres, Secretary-General of the United Nations (UN). After that, the Prime Minister delivered an address at the General Debate in the UN General Assembly.
Visit to the United States: Fourth Day
Cabinet Secretariat, Wednesday, September 26, 2018
[Provisional Translation]
On September 26, 2018 (local time), Prime Minister Shinzo Abe, who is visiting New York in the United States of America, held a meeting with H.E. Dr. Hassan Rouhani, President of the Islamic Republic of Iran.
Afterwards, the Prime Minister met with the Honorable Donald Trump, President of the United States of America, and the two leaders issued a Japan-U.S. Joint Statement. Thereafter, the Prime Minister held a press conference.
Visit to the United States: Second Day
Cabinet Secretariat, Monday, September 24, 2018
[Provisional Translation]
On September 24, 2018 (local time), Prime Minister Shinzo Abe, who is visiting New York in the United States of America, held a meeting with H.E. Mr. Recep Tayyip ERDOĞAN, President of the Republic of Turkey.
Prime Minister Shinzo Abe’s Article contributed to The Financial Times (U.K.)
Foreign Affairs, Tuesday, September 25, 2018
Unprecedented torrential rain and landslides ravaged the residents of western Japan this summer, killing more than 200 people, and ruining hundreds of thousands of livelihoods. Meanwhile, severe scorching heatwaves struck the country and resulted in approximately 160 deaths. Fierce heat also gripped North America and Europe, and hurricanes and typhoons hit the US and Philippines.
Global warming increases carbon dioxide and acidifies the ocean, damaging its ability to self-purify. Even worse, proliferating marine plastic pollution threatens marine ecosystems and eventually, our own health.
The international community has taken steps to address climate change with forward-looking and long-term goals. An agreement was adopted in Paris in 2015 with the participation of all major economies including China and India. The following year, I went a step further at the Ise-Shima summit in Japan, as G7 members committed to devising long-term strategies.
Climate change can be life-threatening to all generations, be it the elderly or the young and in developed and developing countries alike. The problem is exacerbating more quickly than we expected. We must take more robust actions. And swiftly.
The way forward is clear. We must save both the green of the earth and the blue of its oceans.
Our goals must be firmly based on the latest scientific knowledge. As we learn more, through the work and expertise of the scientists at the Intergovernmental Panel on Climate Change, the entire world should take appropriate measures accordingly.
All countries must engage with the same level of urgency. Some are still increasing greenhouse gas emissions and emit more than 2bn tonnes annually according to the International Energy Agency. All countries must put promises into practice. Developed countries should provide support to developing countries for fulfilling their obligations.
As part of their long-term strategies, governments should promote innovation to drive new growth and spread the net widely for new ideas.
No alternatives should be excluded. Japan has goals such as creating ultra-high-capacity storage batteries, further decentralising and digitising automated energy control systems, and evolving into a hydrogen-based energy society. Countries should also rank the competitiveness of a company based on its development and dissemination of future-oriented technologies. This would encourage companies to invest for the long term.
Momentum is already growing in the private sector. The number of companies engaging in environment, social and governance-focused investment or issuing green bonds is rising dramatically. Japan’s Government Pension Investment Fund is one of them. Investors now require businesses to analyse environmental challenges and disclose potential risks as well as opportunities.
We must also focus on reducing emissions from infrastructure. In Japan, our Shinkansen high-speed rail network prevents congestion and boosts the overall fuel efficiency of transportation nationwide. We also have set our carmakers a goal to cut the greenhouse gas emissions per vehicle they produce by 80 per cent by 2050 so as to realise “Well-to-Wheel Zero Emission”.
We must simultaneously boost economic growth and reduce the use of fossil fuels. That means cutting the costs and improving the reliability of renewable energy.
In Japan, the volume of electricity generated from renewable sources has increased 2.5-fold in the past four years. Japan will host the world’s first ministerial meeting focused on hydrogen energy. We cannot overlook safe nuclear power generation and controls on emissions of methane and hydrofluorocarbons.
Manufacturers with large-scale greenhouse gas emissions should be encouraged to update their production methods. Countries should stop excessive steel production, which causes massive greenhouse gas emissions and creates imbalances in markets.
Finally we should tap data processing and communications advances to speed up the innovation cycle. Investing in energy transition and the sharing economy will ensure economic growth and dramatically reduce greenhouse gases.
Addressing climate change, marine pollution, and disaster risk reduction are critical pillars for achieving the UN’s Sustainable Development Goals. Japan will preside over the G20 next year and focus on accelerating the virtuous cycle of environmental protection and economic growth.
When the seventh Tokyo International Conference on African Development is held in Japan, we will extend support to African countries. We invite the rest of the world to join us in tackling this tough challenge.
The writer is prime minister of Japan
Prime Minister Shinzo Abe’s Article contributed to The Financial Times (U.K.)
Press Conference on the Dinner with the President of the United States
Cabinet Secretariat, Sunday, September 23, 2018
[Provisional Translation]
On September 23, 2018 (local time), Prime Minister Shinzo Abe held a press conference in New York in the United States of America.
In regard to his dinner with the Honorable Donald J. Trump, President of the United States of America, the Prime Minister said,
“President Trump and I had a private dinner for about two and a half hours. In a relaxed atmosphere as always, we had a frank and in-depth exchange of views not only about Japan-U.S. relations, but also about various issues related to the international community. Particularly in regard to the North Korea issue, we agreed to further strengthen the momentum created by the historic U.S.-North Korea Summit Meeting held in June, and to continue working closely together towards the denuclearization of the Korean Peninsula. As for the abductions issue, which is of utmost importance, I had heard the strong sentiments of the members of the Association of Families of Victims Kidnapped by North Korea before my departure from Japan, and I conveyed their messages to President Trump. As I spoke, President Trump leaned in and listened closely; in response, he reiterated that he had firmly conveyed Japan’s position in person to Chairman Kim Jong-un of North Korea. Working together with the international community, including the United States, we will resolve the abductions issue and, as the next step, I will engage with Chairman Kim Jong-un directly. I am determined to seize and make the most of all opportunities to resolve the abductions issue at the earliest possible date.”
In addition, the Prime Minister said,
“With regard to trade issues, we shared candid exchanges of views with each other about various topics related to U.S. trade policy, in addition to the trade relations between Japan and the United States. I believe we did have an extremely constructive discussion on commerce, investment, and trade between Japan and the United States as well as the FFR (talks for free, fair, and reciprocal trade deals). In any case, Minister Motegi will be meeting with U.S. Trade Representative Robert Lighthizer in New York after this. Following that meeting, I will speak again with President Trump at our Summit Meeting on September 26.”
The Prime Minister also said,
“Initially, the plan was to dine at a restaurant in the basement. I was actually invited to the drawing room of his private residence, where I first met President Trump in November two years ago. I suppose it was around 30 minutes before our dinner. As he suggested that we could converse in a more relaxed atmosphere in that space, we spoke there for about half an hour and had our dinner there, instead of visiting a restaurant. Thank you very much.”
Press Conference on the Visit to the United States
Cabinet Secretariat, Sunday, September 23, 2018
[Provisional Translation]
On September 23, 2018, Prime Minister Shinzo Abe held a press conference at Tokyo International Airport (Haneda Airport).
In regard to his visit to the United States, the Prime Minister said,
“At this session of the UN General Assembly, I will hold summit meetings with the leaders of various countries, including President Donald J. Trump of the United States and President Moon Jae-in of the Republic of Korea (ROK). Through these summit meetings, I will emphasize the importance of the resolution of the outstanding issues of concern relating to North Korea, including the nuclear and missile issues, and, most importantly, the abductions issue.
With President Trump, I am scheduled to have a one-on-one (tete-a-tete) meeting and dinner this evening. We will also hold a Japan-U.S. Summit Meeting on September 26.
In addition, I will hold a summit meeting with President Moon Jae-in on September 25, with the aim of further deepening cooperation among Japan, the U.S. and the ROK.
On the dialogues of economic issues between Japan and the United States, first of all, President Trump and I, Japan and the United States, share the broader goals of further expanding investment and trade between Japan and the U.S., thereby realizing economic development in a free and open Indo-Pacific region based on fair rules so as to benefit both of our countries. I hope to engage in constructive discussions with President Trump based on the outcomes of the upcoming FFR (talks for free, fair and reciprocal trade deals) meeting between Minister Motegi and U.S. Trade Representative Lighthizer.”
The 11th Ministerial Meeting of the Global Governance Group (3G)
Foreign Affairs, Friday, September 28, 2018
On September 28th, from 8 a.m. to 9:15 a.m. (local time), in New York, Mr. Taro Kono, Minister for Foreign Affairs, attended the breakfast meeting of the 11th Ministerial Meeting of the Global Governance Group (3G) and the overview is as follows.
1. The meeting was hosted by H.E. Dr. Vivian Balakrishnan, Minister for Foreign Affairs of the Republic of Singapore, and attended by Foreign Ministers and representatives from the G20 troika (Japan, Germany, Argentina) and 3G member countries, as well as H.E. Mrs. María Fernanda Espinosa Garcés, President of the 73rd session of the United Nations General Assembly. Participants exchanged their views on the priority agenda of the upcoming G20 Buenos Aires Summit (November 30 and December 1, 2018) and on the partnership between the United Nations and the G20.
2. Minister Kono expressed that Japan fully supports Argentina’s leadership under their G20 presidency, and as the next G20 presidency, emphasized that it is critical for the G20 to lead global economic growth by promoting free trade and innovation. Having said that, Minister Kono expressed that Japan seeks to work closely with the United Nations and 3G member countries in achieving global economic growth and an inclusive and sustainable international community, by contributing to the resolution of global issues that have an immense impact on the global economy.
3. Participants agreed to continue cooperation from Argentina’s G20 presidency into Japan’s G20 presidency in working towards the resolution of global issues.
(Reference)
(1) The 3G was established in 2009 to promote constructive dialogue between the UN and the G20. The group consists of 30 UN member states that are non-G20 members. Every year during the UN High Level Week, Singapore organizes a meeting between the Foreign Ministers and representatives of the G20 troika and 3G, and the UN General Assembly President to discuss outcomes of the most recent G20 Summit and the priority agenda of the upcoming G20 Summit.
(2) 3G Members: Bahamas, Bahrain, Barbados, Botswana, Brunei Darussalam, Chile, Costa Rica, Finland, Guatemala, Jamaica, Kuwait, Liechtenstein, Luxembourg, Malaysia, Monaco, Montenegro, New Zealand, Panama, Peru, Philippines, Qatar, Rwanda, San Marino, Senegal, Singapore, Slovenia, Switzerland, United Arab Emirates, Uruguay, Vietnam (30 countries).
(3) Japan will assume the G20 presidency from Argentina in December 2018 and will host the G20 Leader’s Summit in Osaka on June 28 and 29 and the G20 Foreign Ministers’ Meeting in Nagoya on November 22 and 23.
Statement by Mr. Taro Kono, Minister for Foreign Affairs of Japan, at the United Nations Security Council Meeting on DPRK Denuclearization
Foreign Affairs, Thursday, September 27, 2018
Thank you, Mr. President,
I would first like to extend my sincere gratitude to Secretary Pompeo, for your tireless efforts on North Korean issues. You have not only brought this meeting together to reaffirm our collective determination to tackle these pressing issues but you have also been selflessly dedicated to achieving the complete denuclearization of North Korea for the good of us all. I would also like to pay tribute to my counterpart from the Republic of Korea, Minister Kang, for her leadership and hard-work.
Japan welcomes and supports the ongoing diplomatic efforts, including the historic US-North Korea Summit in Singapore in June as well as three Inter-Korean Summits this year, as a step towards the comprehensive resolution of the outstanding issues regarding North Korea.
It is my greatest hope that these efforts will lead to the complete, verifiable and irreversible dismantlement (CVID) of all weapons of mass destruction and ballistic missiles of all ranges by North Korea, which is a common goal that we all share under the relevant Security Council resolutions. Japan will spare no effort to realize this goal.
Nevertheless, we are acutely aware that the IAEA’s most recent report expressed “grave concern” that North Korea continues its nuclear program.
What we seek is for North Korea to seize this unprecedented opportunity and take decisive and irreversible steps towards CVID.
The international community should come together to assist the diplomatic efforts that are underway, and encourage North Korea to make a strategic decision to fulfill its international obligations and commitments. In doing so, it is critical for us to remain united to ensure full implementation of the resolutions that this Council has unanimously adopted. I am convinced that there is no better way for us to support the current diplomatic process.
We should also be aware of some important incidents. The Government of Japan shares the view of the U.S. Government and some other partner countries that the 2018 annual cap for petroleum products has already been breached. It is important that all Member States immediately stop supplying these products to North Korea under the Security Council resolutions. There are also continued reports of increasingly sophisticated efforts to evade and circumvent measures based on the Security Council resolutions, including through so-called “ship to ship” transfers and the selling of fishing rights. The very authority of the decisions made by this Council is at stake. It is our obligation to stop sanction evasion activities.
Last but not least, between Japan and North Korea lie the issues that must be resolved immediately. Japan is determined to directly engage with North Korea and use every possible means at our disposal towards the immediate resolution of the issues.
North Korea is blessed with great potential and is wellplaced to shape a brighter future for itself if it takes the right path. North Korea enjoys an abundance of resources and a hardworking labor force. This is an important moment, and I strongly urge North Korea to seize this unique opportunity. It is only North Korea that can make this happen.
In order to achieve lasting peace and stability in Northeast Asia and beyond while protecting the current international non-proliferation regime, it is absolutely imperative to realize the complete, verifiable and irreversible dismantlement of all weapons of mass destruction and ballistic missiles of all ranges by North Korea. To this end, let us unite in renewing our clear and unwavering commitment to the full implementation of the relevant Security Council resolutions.
Thank you very much.
Foreign Minister Taro Kono’s Article contributed to The Washington Post (U.S.)
Foreign Affairs, Tuesday, September 25, 2018
Taro Kono is the foreign minister of Japan.
Last November, I visited the Cox’s Bazar refugee camp, where more than 700,000 Muslim refugees from Rakhine State are taking refuge. In January, I visited northern Rakhine State. These two trips made a huge impression on me and helped move the Rakhine issue up to become one of the highestpriority issues in Japan’s foreign policy agenda. In August, I visited Myanmar and Bangladesh for the second time and met with the leaders of both nations to discuss a way forward. Any solution to the refugee problem must be led by the two countries. Myanmar, also known as Burma, and Bangladesh are committed to the safe, voluntary and dignified repatriation of the refugees. We must help support their efforts and foster mutual trust and cooperation.
The most urgent task today is to improve conditions in the Cox’s Bazar camp. I praise the Bangladeshi people and their government for their compassion and generosity in accepting hundreds of thousands of refugees. However, the funding gap to assist the refugees remains large. To date, only 38 percent of the needed funds have been pledged by donors. Though the burden on the local communities is getting bigger, they are still willing to share their scarce resources with the refugees, such as land, food and water. The international community needs to support Bangladesh’s efforts to overcome this crisis and further increase assistance to fill the gap.
Nevertheless, the key for a sustainable solution is to create the conditions for the early return of refugees and their peaceful resettlement in Rakhine State. As John F. Kennedy wrote in “Profiles in Courage,” “The true democracy … puts its faith in the people … faith that the people will not condemn those whose devotion to principle leads them to unpopular courses, but will reward courage, respect honor, and ultimately recognize right.” Aung San Suu Kyi, the longtime democracy and human rights advocate of Myanmar, is facing great difficulty in balancing her moral principles and the views of her constituents, who are not necessarily very open to the idea of repatriation and resettlement. It is easy to criticize Aung San Suu Kyi for not responding to the situation quickly, but what the international community has to do now is to support the efforts of her government.
The Myanmar government has been making efforts, but it needs to do more. While it has constructed facilities such as reception centers and housing, the government needs to guarantee freedom of movement and clarify its pathway towards citizenship verification process. It has also signed a Memorandum of Understanding with the U.N. refugee agency and the U.N. Development Program that guarantees U.N. workers’ presence on the ground in Myanmar, which is essential for the success of the repatriation process. Their projects based on the latest needs assessment will begin soon. Moreover, no effort should be spared to tackle the multifaceted root causes of the issue, for which Kofi Annan and his Advisory Commission on Rakhine State provided comprehensive prescriptions in their report last year. The international community must help these efforts of Myanmar for enabling repatriation and resettlement of the refugees.
In order to uncover what happened in Rakhine State, the government of Myanmar established the Independent Commission of Enquiry, which is composed of two Myanmar members and two international members. Accountability should be established on Myanmar’s own initiative. We fully hope and expect the commission to conduct its investigation in a credible manner, and to that end, it needs the full cooperation from Myanmar’s military.
Many are busy criticizing the Myanmar government for not taking the necessary steps quickly enough. However, what the international community has to do right now is not to criticize, but to patiently support Myanmar’s own efforts for the early, safe, voluntary and dignified repatriation of refugees. The peace and stability of Rakhine State cannot be realized without solidifying democracy and human rights in Myanmar. The international community must not short-circuit Myanmar’s evolution toward democracy.
Foreign Minister Mr. Taro Kono’s attendance to EU-hosted High Level Meeting on Syria and Japan’s new humanitarian assistance to support the Syrians
Foreign Affairs, Wednesday, September 26, 2018
On September 26th (Wednesday),Mr. Taro Kono, Minister for Foreign Affairs of Japan, attended the EU-hosted High Level Meeting on Syria in New York. This meeting was held as follow-up to the Second Brussels Conference on Supporting the Future of Syria and the Region in April this year.
1. Minister Kono expressed his deep concern over the possibility of a large scale military conflict and the potential use of chemical weapons in Idlib province. Then, stressing that lasting peace and stability in Syria can only be achieved through the political process in Geneva and national reconciliation, Mr. Kono emphasized his strong support to the effort of Mr. Staffan de Mistura, UN special envoy for Syria including the establishment of the constitutional committee.
2. Minister Kono also announced Japan’s new humanitarian assistance worth about 10 million USD through WHO to support health sector in Syria, introducing Japan’s principle of assistance to Syria to deliver humanitarian assistance to all Syrians facing difficulties.
3. In the conference, all participants confirmed the importance of advancing the political process, including the establishment of the constitutional committee and that there is no military option to solve the Syria crisis.
Foreign Minister Kono Attends the Women Foreign Ministers’ Meeting Co-hosted by Canada and the EU
Foreign Affairs, Saturday, September 22, 2018
On Friday, September 21 and Saturday, September 22, Mr. Taro Kono, Minister for Foreign Affairs of Japan, visited Canada (Montreal) to attend the Women Foreign Ministers' Meeting co-hosted by the Government of Canada and the European Union (EU). The overview is as follows.
1 Overview of the Meeting
Canada (Ms. Freeland, Minister of Foreign Affairs), the G7 presidency, and the EU (Ms. Mogherini, High Representative for Foreign Affairs and Security Policy) hosted this meeting on such themes as promoting women's empowerment; women, peace and security; rules-based international order; and eliminating violence against women, inviting women foreign ministers from around the world and the G7 foreign ministers. Women foreign ministers from 16 countries attended. Minister Kono was the only male participant.
2 Sessions Attended by Foreign Minister Kono
Minister Kono attended the working dinner on September 21 and the breakfast with the civil society on September 22.
At the working dinner on September 21, a variety of views were expressed regarding current international affairs, primarily from the perspective of women. Minister Kono explained the situation of the active role played by women in Japan and invited the participants to the World Assembly for Women (WAW!) and Women 20 (W20) to be held in March 2019, in which many participants expressed strong interest.
At the breakfast with the civil society on September 22, attended by members of the civil society including Gbowee Peace Foundation Africa, Amnesty International, ICAN, Quebec Native Women, and Association for Women in Media, discussion took place on the role and contribution of the civil society towards resolving a range of international and regional issues, and the importance of government-civil society partnership was underscored.
(Reference) Countries participating in the meeting
Hosts: Canada, EU
G7: Japan
Women foreign ministers: Andorra, Bulgaria, Costa Rica, Croatia, Ghana, Guatemala, Indonesia, Honduras, Kenya, Namibia, Norway, Panama, Rwanda, St. Lucia, South Africa, Sweden
Japan-Jordan Foreign Minister’s Meeting
Foreign Affairs, Tuesday, September 25, 2018
On September 25, commencing at 6:15 p.m. for approximately 45 minutes, Mr. Taro Kono, Minister for Foreign Affairs held a bilateral meeting with H.E. Mr. Ayman Safadi, Minister of Foreign Affairs and Expatriates of the Hashemite Kingdom of Jordan on the margin of the 73rd United Nations General Assembly in New York. The overview of the meeting is as follows:
1. In the beginning, Minister Kono said that he was delightful to meet Minister Safadi for the fifth time during a year. Minister Kono stressed that Japan would continuously support Jordan, which plays a major role for the peace and stability in the region. In return, Minister Safadi mentioned that he would continue to work on strengthening the Japan-Jordan relations through high level visits, touching upon latest development of the bilateral relationship. Minister Safadi also explained about Jordan’s strong commitment to reforming internal financial situation.
2. Minister Safadi welcomed Minister Kono’s participation as co-chair in Ministerial Meeting in Support of UNRWA which is to be held on 27 of September, mentioning that this adds values to the meeting. In response, Minister Kono told him that it is a great honour to be the co-chair for the meeting. Two ministers exchanged their views on supporting UNRWA which faces difficult situation, and shared the idea to continue working closely with each other, including at the Ministerial Meeting.
3. The two ministers also exchanged their views on situation in the Middle East, including Middle East Peace Process, Syria and Iraq. They confirmed to continue to keep in touch.
Attendance of PM Abe at a meeting “A Call to Invest: Investing in Youth Jobs in Africa”
Foreign Affairs, Tuesday, September 25, 2018
In the evening 26 September (local time), Mr. Shinzo Abe, Prime Minister of Japan, who is visiting New York to attend the 73rd United Nations General Assembly, attended a high-level meeting titled “A Call to Invest: Investing in Youth Jobs in Africa.” The meeting was co-hosted by the United Kingdom and Canada, and co-chaired by Rwanda and Ghana. The overview of the meeting is as follows.
1. In the beginning, The Rt Hon May MP, Prime Minister of the United Kingdom of Great Britain and Northern Ireland and H.E. Mr. Guterres, Secretary-General of the United Nations welcomed the participants of the meeting, and pointed out that the issue of youth unemployment has become a big problem in Africa as well as investment is highly important to solve this problem. Also, the Right Honourable Trudeau, Prime Minister of Canada, H.E. Mr. Kagame, President of the Republic of Rwanda and H.E. Mr. Akufo-Addo, President of the Republic of Ghana as co-host and co-chair countries touched the same point.
2.
(1) Prime Minister Abe mentioned that Japan has promoted African development under the dual principals of African “ownership” and international “partnership” since the launch of TICAD in 1993 and presented Japan’s efforts of human resource development and promotion of private investment in the context of investing in youth jobs in Africa.
,P>(2) Regarding human resource development, he presented the ABE initiative, which was launched at TICAD V by Prime Minister Abe himself to provide the opportunity for 1000 of young African men and women to study in Japanese universities and to experience internships at Japanese enterprises, as well as and the job training for African youth. Prime Minister Abe stated that Japan reinforces its efforts for human resource development towards TICAD 7 in August next year.
(3) Regarding the promotion of private investment, Prime Minister Abe also mentioned Japan-Africa Public-Private Economic Forum which was launched in TICADVI was held in Johannesburg in May, and approximately 2000 people including 100 of Japanese companies participated in the forum. Prime Minister Abe stated that towards TICAD 7 in August next year, Japan will continually invest for the future of Africa under public-private partnership.
3. Other participants explained their effort to solve the problem of youth unemployment in Africa and expressed their expectations for solving the problem through investment.
(Participants)
(1) Co-host countries
The Rt Hon May MP, Prime Minister of the United Kingdom of Great Britain and Northern Ireland
Right Honourable Trudeau, Prime Minister of Canada
(2) Co-chair countries
H.E. Mr. Kagame, President of the Republic of Rwanda
H.E. Mr. Akufo-Addo, President of the Republic of Ghana
(3) Other participants
H.E. Mr. Kenyatta, President of the Republic of Kenya
H.E. Mr. Nyusi, President of the Republic of Mozambique
H.E. Mr. Patrice Athanase Guillaume Talon, President of the Republic of Benin
H.E. Mr. Daniel Kablan Duncan, Vice President of the Republic of Cote d’Ivoire
H.E. Mr. Antonio Manuel de Oliveira Guterres, Secretary-General of the United Nations
Ms. Amina Mohammed, Deputy Secretary-General of the United Nations
High-level officials from countries and international organizations
Business leaders
Leaders from youth of Africa
Prime Minister Abe Held Informal Talks with the President of Panama
Foreign Affairs, Tuesday, September 25, 2018
On September 25, commencing at 5:10 p.m. for approximately 10 minutes, Mr. Shinzo Abe, Prime Minister of Japan, held informal talks with H.E. Mr. Juan Carlos Varela, President of the Republic of Panama, at the United Nations (UN) Headquarters, during his visit to the United States of America to attend the UN General Assembly. The overview of the talks is as follows.
Prime Minister Abe expressed his welcome to be meeting President Varela again after two-and-a-half years and his intention to deepen cooperation with Panama, which enjoys the bounties of free and open seas, and with which Japan shares fundamental values.
In response, President Varela explained that, with regard to the ODA loan for the Panama Metropolitan Area Urban Transportation Line-3 Development Project, which was agreed to between Japan and Panama on the occasion of his visit to Japan in 2016, Panama has officially decided to introduce Japan's monorail technologies. Furthermore, President Varela expressed his gratitude for Japan's support for the project.
Prime Minister Abe welcomed the official decision by Panama to introduce Japan's monorail technologies for the project, and expressed his hope that the project will commence at an early date and benefit the people of Panama.
UN General Assembly High-Level Side Event: “Promoting Quality Infrastructure”
Foreign Affairs, Wednesday, September 26, 2018
On 26 September at the United Nations in New York, Japan, the European Commission and the United Nations co-hosted a High-Level Side Event on “Promoting Quality Infrastructure”. The summary of the meeting is as follows.
In the opening session, the co-hosts, H.E. Mr. Taro Kono, Minister for Foreign Affairs of Japan, H.E. Mr. Neven Mimica, European Commissioner for International Cooperation and Development and H.E. Ms. Grete Faremo, Executive Director of UNOPS (United Nations Office for Project Services) made keynote speeches.
(1) Minister Kono, in his keynote speech, stated that Japan promotes the “Free and Open Indo-Pacific Strategy”, in cooperation with various partners, including the US. Minister Kono also stated that, looking ahead to our G20 presidency next year, Japan will continue efforts to consolidate the quality infrastructure concept as an international standard shared by the international community and enhance connectivity through quality infrastructure.
(2) Commissioner Mimica stated that quality infrastructure is more than just a technically sound project, but ensuring economically, socially and environmentally sustainable approach. Commissioner Mimica also stated that last year the EU launched the External Investment Plan, which aims to bridge the gap between sustainable development needs, and viable business opportunities for public and private investors.
(3) Executive Director Faremo, referring to their efforts in Ghana and Kenya, stated that the UNOPS aims at making projects bankable, and plays important role to help unleash funding of governments and the private sector.
The following panelists participated in the ensuing panel discussion: Mr. Kentaro Sonoura, Special Advisor to the Prime Minister of Japan; Mr. Nicholas O’Regan, Director, Infrastructure and Project Management Group, UNOPS; Dr. Diani Sadiawati, Expert Staff to the Ministry for Institutional Relations, Indonesia National Development Planning Ministry; Ms. Rosemary G. Edillon, Undersecretary, National Economic and Development Authority of the Philippines; Mr. James Richardson, Assistant to the Administrator, USAID; Mr. Gerd Schwartz, Deputy Director, Immediate Office, Fiscal Affairs Department, IMF ; Mr. Mario Pezzini, Director, OECD Development Centre, Special Advisor to the OECD Secretary-General on Development; Mr. Daniel F. Runde, Senior Vice President, Director for Project on Prosperity and Development, Center for Strategic and International Studies (CSIS); Mr. Stefano Manservisi, Director General for International Cooperation and Development of the European Commission (moderator).
(1) Mr. Sonoura, in his presentation, raised the issue of “lender’s responsibility” and reiterated the importance of quality infrastructure in accordance with international standards including open access, transparency, effective resource mobilization and debt sustainability, describing specific examples of quality infrastructure such as the Japan Mekong Connectivity Initiative Project and JICA’s Private Sector Investment (PSI) Finance in the Philippines.
(2) Other panelists explained their respective efforts on effective resource mobilization and debt sustainability.
(3) The moderator summarized as follows: (a) it is important not only to develop international standards on quality infrastructure, but also to implement the standards; (b) quality infrastructure is not only for developing countries, but for the growth of global economy, (c) mobilization of private resources involves not only the private sector, but also government policy; and (d) Japan, as the next G20 presidency, is expected to lead the discussion on quality infrastructure.
A wide range of participants in the field of infrastructure investments, including those from both developed and developing countries, international organizations and think-tanks, shared their efforts on quality infrastructure with particular focus on effective resource mobilization and debt sustainability, and came to an understanding on the importance of international standard of quality infrastructure, including these elements.
Inaugural Meeting of the High-Level Panel for a Sustainable Ocean Economy
Foreign Affairs, Monday, September 24, 2018
On Monday, September 24, from 17:30 p.m. (JST 4:30 a.m.) for approximately 2 hours, the Inaugural Meeting of the High-Level Panel for a Sustainable Ocean Economy was held at The Museum of Modern Art, New York. The overview of the meeting and the message from Prime Minister Shinzo Abe (read by Ambassador Suzuki, Assistant Vice-Minister for Global Issues) are as follows.
1. At the outset, H.E.Ms. Erna Solberg Prime Minister of Kingdom of Norway and H.E. Mr. Tommy Remengesau, President of the Republic of Palau co-chairs of this Panel, delivered opening addresses. Thereafter, heads of governments in attendance and H.E. Mr. Peter Thomson, United Nations Secretary General’s Special Envoy for the Ocean expressed their respective views on a sustainable ocean economy.
2. In his message, Prime Minister Abe highly commended Prime Minister Solberg for taking on this important initiative that contributes to the achievements of SDGs such as Goal 14, and pointed out that this Panel’s discussion should focus on strictly enforcing the rule of law in the oceans and harmonizing the use and the science-based conservation of the oceans.
From these perspectives, he identified three issues to be addressed at the panel.
(1) First, is the issue of marine plastic litter. He stated that measures to address the problem of marine plastic litter can no longer wait, and all countries, each one of us must now take action, as it relates to our own issue. He also expressed his hope that we can deepen discussions on how to tackle this growing problem at this panel, and that Japan would like to contribute to the global community, using our technologies and expertise for this issue.
Also, he stated that the G20 Osaka Summit will feature Ocean Plastic Wastes on the agenda, and Japan would like to announce an initiative for effective measures to tackle this problem, and drive global measures to help resolve this issue.
(2) The second issue is how to deal with the effect of climate change on the oceans. Prime Minister Abe pointed out the effect of climate change on the oceans, and stated that the panel may seek to address this issue, including how to assist Small Island Developing States that are particularly vulnerable to the impact of climate change.
(3) The third issue is the problem of sustainable fishery. Prime Minister Abe stated that illegal, unreported, and unregulated (or IUU) fishing remains a threat to the sustainable use of marine resources, and he would like to address future measures on this issue on this panel.
Leaders of the Kingdom of Norway, the Republic of Palau, the Republic of Fiji, the Republic of Ghana, Jamaica, the United Mexican States and the Republic of Namibia, who are members of this panel attended.
Lunch Meeting hosted by Foreign Minister Taro Kono with the Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation of Cambodia
Foreign Affairs, Wednesday, September 19, 2018
On September 19 Mr. Taro Kono, Minister for Foreign Affairs, held a lunch meeting commencing at 11:40 a.m. for approximately 90 minutes with H. E. Mr. Prak Sokhonn, Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation, Kingdom of Cambodia, during his visit to Japan. The overview of the meeting is as follows.
1. At the beginning, Minister Kono welcomed Minister Prak Sokhonn’s first visit to Japan as Foreign Minister and congratulated him on his promotion to Deputy Prime Minister, with expressing his happiness to hold their third meeting this year. Furthermore, Minister Kono explained that since the Cambodian peace process Japan has been working alongside Cambodia to develop the country and advance its democratization, and he stated that he hoped to hold a robust exchange of views regarding the future bilateral relationship to ensure that Cambodia continues to follow the path of democratic advancement.
In response, Minister Prak Sokhonn expressed his gratitude for the invitation to visit Japan, stated that he feels delightful for the major advances being made in the bilateral relationship as the countries celebrate the 65th anniversary of the establishment of diplomatic relations, and once again expressed appreciation for the support that Japan has extended thus far.
2. During the meeting the two ministers exchanged views on the preparation for the Mekong-Japan Summit Meeting in October, and shared the view that they would closely coordinate to announce new strategies for the Mekong-Japan cooperation at the Summit, which comprises three pillars of connectivity, people and the environment. In addition, the ministers exchanged views on the Sustainable Development Goals (SDGs), the North Korea situation, maritime issues and the Regional Comprehensive Economic Partnership (RCEP).
3. With regard to the domestic situation in Cambodia, Minister Kono once again urged the Cambodian government to promote democratic process by initiating a dialogue among the concerned domestic political figures and ensuring the freedom and rights of the people. Furthermore, Minister Kono expressed his intention to provide support, including by inviting young politicians from Cambodia’s ruling and opposition parties to Japan.
Multinational efforts against illicit maritime activities including ship-to-ship transfers with North Korean-flagged vessels prohibited by UNSCRs
Foreign Affairs, Sunday, September 23, 2018
1. The Japan Maritime Self-Defense Force and the Japan Coast Guard are also conducting information gathering activities for vessels suspected to be in the violation of UNSCRs. When activities suspected of ship-to-ship transfers are found, the Government of Japan notifies the UN Security Council 1718 Sanctions Committee and shares information with relevant countries. Japan has publicized 10 cases strongly suspected of being engaged in ship-to-ship transfers.
2. Japan welcomes that the U.S. and partner countries announced coordination of multinational efforts against illicit maritime activities including ship-to-ship transfers with North Korean-flagged vessels prohibited by UNSCRs. The following is Japan’s view on these efforts.
(1) As announced on September 7 and 22, Australia, New Zealand and Canada, in addition to the U.S., have decided again to engage in monitoring and surveillance activities against illicit maritime activities, including ship-to-ship transfers with North Korean-flagged vessels prohibited by UNSCRs, based in Kadena Air Base from the middle of September. Japan welcomes the deployment of patrol aircraft from Australia, New Zealand and Canada to engage in the activities. Japan also welcomes that U.S. and partner countries deployed the surface vessels for monitoring and surveillance activities.
(2) Japan considers it is significant that Japan, the U.S., Australia, New Zealand, Canada, the United Kingdom and France are sharing information and coordinating efforts as part of the multinational effort to ensure that UNSCRs are implemented fully and effectively.
(3) Japan will ensure effectiveness of the relevant UNSCRs while maintaining the solidarity of international community for the realization of North Korea’s dismantlement of all WMD and ballistic missiles in a complete, verifiable, and irreversible manner. The Government of Japan and the U.S. Government shared the view that North Korea has breached the 2018 annual cap for refined petroleum products established by UNSCR. To have all United Nation member states immediately stop supplying refined petroleum products to North Korea, Japan will work with the United States and other partner countries to strengthen the response to ship-to-ship transfers.
Ministerial Council on Emergency Inspection of Critical Infrastructure
Cabinet Secretariat, Friday, September 21, 2018
[Provisional Translation]
On September 21, 2018, Prime Minister Shinzo Abe held a meeting of the Ministerial Council on Emergency Inspection of Critical Infrastructure at the Prime Minister’s Office.
The Prime Minister said in his opening address,
“I would like to express my heartfelt condolences for all the people who have lost their lives as a result of the Hokkaido Eastern Iburi Earthquake, Typhoon No. 21, the heavy rains in western Japan and other disasters. I would also like to extend my deepest sympathies to all who have been affected by these disasters.
Recovery from these disasters is steadily underway in the respective areas, thanks to the efforts of all the relevant parties, such as the lifting of the power conservation target in Hokkaido, the reopening of the entire passenger terminals of the Kansai International Airport, and the enhancement of safety in the areas affected by the heavy rains in western Japan through the dredging and removal of trees and other debris from rivers.
Furthermore, we will designate public civil engineering facilities, with no areal limitations, with respect to the Hokkaido Eastern Iburi Earthquake, and nine municipalities in Wakayama, Nara, Osaka, Nagano, and Niigata, affected by Typhoons No. 19,* No. 20,** and No. 21,*** as “Disaster of Extreme Severity.” We will accelerate the arrangements towards Cabinet approval at the earliest possible date.
This recent series of natural disasters has also highlighted certain issues. We will conduct emergency inspections nationwide and compile response measures by the end of November to ensure that critical infrastructure that support our lives, such as electricity and airports, maintain their functions in case of any forms of disasters.
I ask all ministers to work together and take all possible measures to strengthen the resilience of our critical infrastructure, under the leadership of Minister in charge of Building National Resilience Hachiro Okonogi. At the same time, weather conditions have been showing dramatic changes in recent years, as seen by extensive torrential rains. To respond to such changes, we will put in place intensive emergency measures in disaster prevention, disaster mitigation, and national resilience over the coming three years, so as to build a resilient Japan where people feel safe.”
*Typhoon Soulik
**Typhoon Cimaron
***Typhoon Jebi
Minutes of the Monetary Policy Meeting on July 30 and 31, 2018
Bank of Japan, Tuesday, September 25, 2018
A Monetary Policy Meeting of the Bank of Japan Policy Board was held in the Head Office of the Bank of Japan in Tokyo on Monday, July 30, 2018, from 2:00 p.m. to 3:30 p.m., and on Tuesday, July 31, from 9:00 a.m. to 12:56 p.m.
Summary of Opinions at the Monetary Policy Meeting on September 18 and 19, 2018
Bank of Japan, Friday, September 28, 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 somewhat tight supply-demand conditions continuing going forward, it is expected that there will be progress in implementing structural measures aimed at making use of a variety of human resources as well as saving labor, and that an increase in income will lead to an expansion in consumption.
- Japan's economy has regained its momentum as business fixed investment and consumption made a significant positive contribution in the April-June quarter. As for the outlook, the baseline scenario is maintained, in which the economy is expected to continue its moderate expansion mainly on the back of firm growth in overseas economies, although attention should be paid to risk factors.
- Japan's economy has continued its moderate expansion, with the output gap remaining positive led by domestic demand. Meanwhile, uncertainties regarding the outlook for overseas economies have been heightening, and it is necessary to pay due attention.
- The underlying trend in Japan's economic activity has not changed significantly. As for overseas economies, the contrast between the favorable U.S. economy and other economies is becoming more evident, mainly reflecting U.S. trade policy, and uncertainties regarding their outlook have been heightening as well.
- With regard to the risk balance in the global economy, there likely remain growing downside risks stemming from trade friction between such economies as the United States and China as well as from fluctuations in financial markets.
- In a situation where there is growing concern about trade friction and natural disasters are occurring successively in Japan, close attention should be paid to heightening uncertainties regarding the outlook for economic activity and prices, as seen in some weakness in several leading indicators.
- Attention should be paid to the effects of the successive natural disasters on consumption and firms' production activity in Japan, and thus it is essential to continue to gather information thoroughly and to consider necessary responses.
- The effective way to achieve economic growth is to cut back on jobs that are not profitable. As this will give rise to problems in terms of employment, tightening labor market conditions through monetary easing will bring about economic growth. While the rate of increase in labor productivity per hour has been rising under quantitative and qualitative monetary easing (QQE), actual labor productivity is likely to be rising to a greater extent than the figures indicate, considering that the newly employed workers consist of those with little experience and seniors.
- In line with demographic changes such as the declining birthrate and aging population and developments in labor productivity, there likely will be downward pressure on the natural rate of interest. It is important to underpin this rate by further promoting technological innovation.
Prices
- The year-on-year rate of change in the consumer price index (CPI) is likely to increase gradually toward 2 percent, mainly on the back of the output gap remaining positive and medium- to long-term inflation expectations rising.
- As there is a limit to a rise in the employment rate and efficiency-improving investment that has a large impact, labor shortage will lead to wage increases. While the recent statistical figures are said to be showing a higher rise in wages than is actually the case, wage increases and an expansion in employment will bring about an expansion in employee income -- that is, wages multiplied by the number of employees -- and raise prices through increases in both demand and costs.
- Looking at the latest CPI for all prefectures and that for Tokyo, it is a relief that the deceleration in prices of goods has paused, partly because the effects of the yen's appreciation through early spring have dissipated. A significant increase in summer bonuses is also a positive development.
- The momentum whereby an improvement in the output gap leads to a rise in inflation has been maintained, but it should be noted that it will still take considerable time for this to change people's perception of prices and thereby shift the Phillips curve upward.
- The year-on-year rate of increase in the CPI (less fresh food) is likely to continue accelerating moderately. Nevertheless, as consumers' tolerance of price rises has remained low and firms have been cautious about raising prices, it is projected that achieving 2 percent inflation will take some time.
- It is gradually becoming clear that the delay in a rise in inflation is affected by not only a mere demand shortage, but also various factors such as the persistent deflationary mindset and improvement in productivity stemming from expansion in supply capacity. Therefore, uncertainties regarding the outlook for prices have been heightening compared to before.
- The spread of the use of the internet and smartphones is likely to be effective in promoting labor participation by seniors through enabling necessary information gathering. As the supply of labor with high wage elasticity continues, this could be a factor that constrains wage increases, and thus its developments warrant close attention.
II. Opinions on Monetary Policy
- Although it will take time to achieve the price stability target, it is necessary to persistently continue with the current powerful monetary easing as the momentum toward 2 percent inflation is maintained.
- 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.
- It is necessary to persistently maintain highly accommodative financial conditions while carefully examining the positive effects and side effects of the current powerful monetary easing.
- It is necessary to continue to pay close attention to the effects on financial markets of strengthening the framework for continuous powerful monetary easing decided at the previous meeting, as only about two months have passed including the summer slack period for market transactions.
- It is important to continue to thoroughly explain that strengthening the framework for continuous powerful monetary easing has made clearer the Bank's intention to persistently continue with powerful monetary easing while taking into account its side effects.
- There is room for the Bank to consider making its monetary policy more flexible in the future with a view to maintaining market functioning, on the condition that the balance between supply and demand is maintained in the economy. However, taking account of uncertainties over prices, it is essential for the Bank to continue with the current monetary policy persistently and cautiously while taking sufficient care of side effects such as financial imbalances.
- Since monetary easing effects could deteriorate over time, it is ambiguous whether the strategy of maintaining short- and long-term interest rates at around certain levels for a long period is effective or not, with a view to achieving the price stability target at an early stage. Rather, it is necessary for the Bank, together with the government, to further support the positive changes in behavior among firms and households through additional monetary easing. Since there is a limit to continuing with large-scale monetary easing for a long period of time taking into consideration its side effects, the time frame for monetary policy should be more discussed among Policy Board members.
- In conducting monetary policy, it is important for the Bank to prepare for downside risks to economic activity and prices. In addition, the Bank should continue to improve the measures that influence inflation expectations, based on the recognition that monetary policy, including the expressions in related statements, is somewhat difficult to understand for households and firms in general in the first place.
- Although some hold the view that monetary easing effects have not been reaching local economies, small and medium-sized firms, and individuals, improvements have been seen in the active job openings-to-applicants ratios in local regions, the profits of small and medium-sized firms, and compensation of employees.
- Firms' demand for funds cannot necessarily be regarded as strong while their amount of internal reserves has been at a record high level. In order to change this situation, it is considered important to encourage firms to create active demand for funds through efforts such as structural reforms, in addition to monetary policy.
III. Opinions from Government Representatives
Ministry of Finance
- With regard to the recent 2018 Typhoon No. 21 and 2018 Hokkaido Eastern Iburi Earthquake, the government is making efforts to provide support for those affected and swiftly restore critical infrastructure.
- The application of budget requests for fiscal 2019 was closed recently, and the government will continue to work on expenditure reforms under the New Plan to Advance Economic and Fiscal Revitalization.
- During the process of budget formulation, the government will consider countermeasures such as against possible fluctuations in demand accompanying the scheduled consumption tax hike.
- The government expects the Bank to continue to work toward achieving the price stability target, taking account of developments in economic activity and prices as well as financial conditions.
Cabinet Office
- The real GDP growth rate for the April-June quarter of 2018 registered positive growth for the first time in two quarters, and the nominal GDP marked a record high of 552.8 trillion yen.
- Attention should be given to the effects of situations over trade issues on the global economy and the economic impacts of the successive natural disasters. The government will do its utmost to proceed with the provision of support for the daily lives of those affected and the restoration and reconstruction of the affected areas.
- The government expects the Bank to steadily pursue monetary easing toward achieving the price stability target, taking account of developments in economic activity and prices as well as financial conditions.
New Tax Convention with Austria will Enter into Force
Ministry of Finance, Friday, September 28, 2018
[Provisional translation]
1. On September 27, the exchange of diplomatic notes between the Government of Japan and the Government of the Republic of Austria for entry into force of the Convention between Japan and the Republic of Austria for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance (signed on January 30, 2017) took place in Vienna.
2. This Convention, accordingly, will enter into force on October 27, 2018 (the thirtieth day after the date of exchange of diplomatic notes) and will have effect:
(a) with respect to taxes levied on the basis of a taxable year, for taxes for any taxable years beginning on or after
January 1, 2019; and
(b) with respect to taxes levied not on the basis of a taxable year, for taxes levied on or after January 1, 2019.
(c) The provisions concerning the assistance in the collection of taxes have effect from
October 27, 2018, without regard to the date on which the taxes are levied or the taxable year to which the
taxes relate.
Deposit of the Instrument of Acceptance of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting
Foreign Affairs, Thursday, September 27, 2018
1. On September 26 (same day local time), Japan deposited the instrument of acceptance of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (Convention to Implement Measures to Prevent BEPS) with the Secretary-General of the Organisation for Economic Co-operation and Development in Paris.
2. As a result, this Convention will enter into force with respect to Japan on January 1, 2019. The Convention will apply to existing tax agreements between Japan and the Parties to the Convention, with each of which Japan make the same notification to choose each tax agreement to be covered by this Convention.
3. This Convention sets out the legal framework to ensure swift, coordinated and consistent implementation of the treaty-related BEPS measures. Conclusion of the Convention will enable parties to deal with international tax evasion and avoidance more effectively.
(Reference) Convention to Implement Measures to Prevent BEPS
(1) The Convention became open for signature on December 31, 2016, and Japan signed this Convention on June 7, 2017 in Paris. Diet approval for concluding the Convention was obtained on May 18, 2018.
(2) The Convention entered into force on July 1, 2018 with respect to first 5 jurisdictions, which had deposited the instrument of ratification, acceptance or approval. With respect to each of jurisdictions depositing the instrument of ratification, acceptance or approval thereafter, the Convention will enter into force on the expiry of a specified period after its deposit. As of September 26, 2018, 82 jurisdictions signed and 12 jurisdictions concluded the Convention.
JICA President Kitaoka Visits Zambia and Malawi, Meets With Officials, Visits ODA Project Sites
JICA, Tuesday, September 25, 2018
JICA President Shinichi Kitaoka visited Zambia and Malawi on Aug. 23-27, met with top officials of each country and visited the sites of ODA projects.
The first country, Zambia, is known as a democratic country with a politically stability. While Zambia is blessed with mineral resources such as copper and cobalt, the promotion of other export industries is overdue, and changing an economic structure dependent on the mining industry is an important issue.
On Aug. 23, in the capital of Lusaka, Mr. Kitaoka visited Chilenje Level 1 Hospital, which was built with Japanese grant aid completed in July 2016. Mr. Kitaoka saw that the hospital is playing a significant role in improving residents' access to medical services. Mr. Kitaoka also visited a factory of Kansai Plascon, the local subsidiary of Kansai Paint Co., Ltd. At Kansai Paint, he found that the distribution of anti-infectious-disease paint by the Verification Survey with the Private Sector for Disseminating Japanese Technologies is expected to help prevent malaria and other communicable diseases and that it has the potential to change the lives of local people.
On the same day, Mr. Kitaoka met with Minister of Finance Margaret Mwanakatwe. Mr. Kitaoka said JICA would support Zambia's efforts to escape its dependence on natural resources and diversify its industry, including agriculture. JICA will also assist Zambia in its work to focus on enriching social services such as health care and education, he added. Ms. Mwanakatwe explained macroeconomic trends and debt management, and said she looks forward to continued assistance from JICA.
On the next day, Aug. 24, Mr. Kitaoka met with President Edgar Lungu. Mr. Kitaoka expressed his respect for Zambia's long-term political stability and introduced JICA's development cooperation approach, which is characterized by an emphasis on human security and dialogue on an equal footing. Finally, he said JICA would like to keep cooperating in health care, education and agriculture sectors. Mr. Lungu thanked JICA for its assistance and said he looks forward to JICA's support for the further development of Zambia.
Next, Mr. Kitaoka visited the National Science Center (NSC) under the Ministry of Education, as well as the University of Zambia's School of Veterinary Medicine (UNZA-SVM), to which Japan has been providing cooperation continuously since the 1980s. The NSC is the center for mathematics and science education for the entire Africa region, and the UNZA-SVM plays the role of a base for research on measures to fight zoonoses, diseases that can be transmitted between animals and people such as Ebola in the southern Africa area. Mr. Kitaoka confirmed that there are positive effects in the region and that it is essential to develop both institutions further.
Subsequently, Mr. Kitaoka went to Malawi a first visit made by JICA president. Malawi is one of the least developed countries in the world, with a per capita gross national income of US$320. JICA is cooperating with the government of Malawi on its initiatives so that no one will be left behind in development and the country will continue to enjoy peace and stable growth.
On Aug. 26, Mr. Kitaoka visited a Japan Overseas Cooperation Volunteers’ (JOCVs) dormitory in Lilongwe, the capital, and placed flowers at the monument. JICA has sent a total of 1,853 JOCVs to Malawi since 1971, the highest number of any country in the world, and 12 have lost their lives during their tenures. The JICA Malawi Office continues to hold memorial events. Mr. Kitaoka reconfirmed the utmost importance of developing projects with the safety of stakeholders foremost in mind in Malawi, which has a poor transportation and medical care situation.
Mr. Kitaoka met with Goodall Edward Gondwe, the minister of Finance, Economic Planning and Development, on Aug. 27. During the meeting, Mr. Kitaoka touched on the history and results of Japan's cooperation, which began with the dispatching of JOCVs in 1971, and said that returned JOCVs maintaining their ties with Malawi is the basis for building friendship and trust between the two countries. Mr. Kitaoka and Mr. Gondwe discussed cooperation to improve on the national 10 percent electrification rate and electricity shortages, and in the field of agriculture, they talked about the importance of irrigation development.
Mr. Kitaoka also had an informal talk with Bright Msaka, the minister of Education, Science and Technology, and Malawian government officials who had studied in Japan. Mr. Kitaoka and Mr. Msaka agreed that to improve the quality of education, it is important to train local teachers and strengthen their abilities.
Finally, Mr. Kitaoka visited Kamuzu International Airport, an essential gateway to Malawi. JICA has been providing support for the airport since its opening in the 1980s, including improving its overall safety and convenience and training its air traffic controllers, through grant aid and technical cooperation. Mr. Kitaoka confirmed that it is playing an essential role in promoting foreign trade in land-linked Malawi.
The 7th Tokyo International Conference for African Development (TICAD7) will take place in Japan at the end of August 2019, and there are plans for discussion of initiatives for quality growth in Africa. Seizing the opportunity afforded by this visit by a JICA president, JICA will further contribute to the economic development of Zambia and Malawi and stronger relationships with them.
