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Wo-0621-0625 The Weekly Observer (6/21~6/25) I. News of the Week 1. A Week Into New COVID-19 Measures ● Health minister Norihisa Tamura said Friday that the government will consider another state of emergency if there is another spike in cases. ● Tokyo recorded 562 new cases on Friday, the third consecutive day that numbers increased by more than 100 from the same day the previous week. ● Overall case numbers are improving. Only Tokyo (1.08 times) and Chiba (1.10) recorded higher rates of new cases last week compared to two weeks ago. However, Okinawa still remains in “Stage Four,” the highest cautionary level. ● Chief Cabinet Secretary (CCS) Katsunobu Kato said Friday that there have been 37 confirmed cases of the “delta plus” variant, or a new variant of the “delta” (Indian) strain. ● A group of experts submitted on Wednesday a report to the health ministry’s advisory board, indicating that the “delta” strain is 1.95 times more transmissible than the traditional strain. It will account for more than half of total cases by July 12 and 68.9 percent around July 23, when the Olympics are scheduled to begin. 2. Government Steps Up Vaccinations ● CCS Kato said Thursday that the government reached its goal of administering a million vaccine shots a day three times this month. He added that, as of Wednesday, 51 percent of elderly citizens have been vaccinated at least once. ● The government plans to expedite vaccinations further by raising the daily cap at the SDF-operated mass vaccination sites in Tokyo and Osaka. Defense Minister Nobuo Kishi said Friday that the SDF-operated sites will only allow individuals with reservations to get vaccinated. ● Vaccine czar Taro Kono said Monday on a TV program that he believes the government will complete vaccinating all willing citizens by the October/November goal set by Prime Minister Yoshihide Suga. ● However, Kono also announced Wednesday that he government will no longer accept applications to set up workplace vaccination sites starting close of business on Friday due to an expected shortage in the supply of Moderna vaccines. ● He said that Japan will reach 1.4 million shots per day including workplace vaccinations, which will exceed the available supply of vaccines. 3. Japan-U.S. Developments 1 The Weekly Observer (6/21~6/25) ● Defense Minister Kishi announced Tuesday that the Ground Self-Defense Force (GSDF) and U.S. Army will hold one of the largest-ever training exercises starting Thursday. ● Exercise Orient Shield will be held across the country between June 24-July 11. Around 3,000 personnel will participate this year, following the March defense ministers’ meeting in which the ministers agreed to bolster readiness through advanced exercises. ● Kyodo reported on Saturday that the government is arranging to cancel plans to install anti-ship missiles, one of the two U.S.-made long-range cruise missiles it planned to deploy with the JASDF’s main fighter F-15s. ● Introducing these missiles with a range of about 900 kilometers is viewed as one of the pillars of strengthening defense of the southwestern islands. ● However, Japan is being forced to cut costs to meet the U.S.’s ¥240 billion demand to modify the F-15s for compatibility with long-range missiles. It will also consider reducing the number of aircraft to modify from seventy. 4. Foreign Policy Developments ● Foreign Minister Toshimitsu Motegi said Friday that, starting July 1, Japan will provide Indonesia, Thailand, the Philippines and Malaysia with one million AstraZeneca vaccines each. Taiwan and Vietnam will also receive an additional one million doses. ● Motegi also said that, starting mid-July, Japan will provide countries in Southeast Asia, Southwestern Asia and the Pacific Islands a total of 11 million doses through the COVAX facility. ● The foreign ministry announced Tuesday that Senior Deputy Minister Takeo Mori will replace Takeo Akiba as vice foreign minister. ● The government plans to appoint the outgoing Akiba to replace Shigeru Kitamura as the new national security secretariat secretary-general. This is likely to give the foreign ministry more say in diplomacy and security issues. ● Takehiro Funakoshi, the director-general of the foreign ministry’s Asian and Oceanian Affairs Bureau, met with Lee Sang-ryeol, director general for the South Korean foreign ministry’s Asia and Pacific affairs, in Seoul on Monday. ● While the two agreed on the importance of trilateral cooperation with the U.S. on North Korea policy and the need to improve bilateral relations, the dispute over historical issues reached an impasse, as South Korea maintained its previous position demanding Japan show sincerity. 2 The Weekly Observer (6/21~6/25) 5. Defense-Related Developments ● On Tuesday, Kishi spoke with Annegret Kramp-Karrenbauer, federal minister of defence of Germany. The two reaffirmed opposition to unilateral attempts to change the status quo, as well as concerns over China’s coast guard law. ● The two also agreed to continue coordinating to conduct joint exercises, and discussed the possibility of a German frigate joining monitoring and surveillance activities against illicit ship-to-ship transfers by North Korea-related vessels. ● Asahi reported last Wednesday that the defense ministry’s draft white paper (to be finalized in July) focused on the rise of China. ● The draft notes China’s military activities are a strong concern for Japan, the region and the world. It also mentions for the first time that stability in the Taiwan region is important for Japan’s national security. 6. Political Developments ● The LDP and CDP agreed on Wednesday to hold an out-of-session examination (heikaichū shinsa) next month to discuss the country’s coronavirus response. ● The welfare and labor committee and steering committee in both Houses will hold sessions on July 7-8 and July 14-15, respectively. ● The LDP rejected the CDP’s demand to hold a separate examination over the “Akagi file,” a key document related to the finance ministry’s falsification of paperwork over the dubious sale of state-owned land to Moritomo Gakuen, a private educational institution. ● An expert study group of the ministry of health, labor and welfare on Tuesday presented a draft revising the “karoshi line,” or the line at which the government certifies a worker’s death is a result of overwork, for the first time in twenty years. ● While the current standard—80 hours of overwork a month in two to six months prior to the onset of health issues or 100 hours a month prior—will remain in place, under the revised rule, case can be ruled an industrial accident (rosai) if an employee works overtime close to the current line and works irregular hours. 7. State of the Economy ● On Friday, the government ratified the Regional Comprehensive Economic Partnership (RCEP), the world’s largest free trade agreement. Japan became the third country to ratify the deal that is expected to enter into force later this year. 3 The Weekly Observer (6/21~6/25) ● The Cabinet Office released on Thursday this month’s monthly economic report, which outlines the current state of the economy.1 ● It showed that the economy is slowly picking up, with exports, investments and corporate profit increasing moderately. At the same time, non-manufacturers continue to suffer, while private consumption continues to be weak. ● The ministry of health, labor and welfare on Tuesday began deliberations with labor unions and business groups on setting a standard for raising the minimum wage to an average of ¥1,000 nationwide from the current ¥902. ● Labor organizations argue that the current minimum wage is too low, while business groups say they cannot raise wages further due to the pandemic. The minimum wage was not raised a significant amount last year due to the pandemic. ● The Bank of Japan (BOJ) decided at its monetary policy meeting last Friday to extend the financial support program for companies it started during the pandemic. The deadline will be extended from September 2021 to March 2022. 8. Issues Mount a Month Prior to the Olympic Games ● Yasuhiko Nishimura, grand steward of the Imperial Household Agency (Kunaichō) said Thursday that he believes Emperor Naruhito is concerned that the Olympic Games could cause a further increase in coronavirus cases. ● CCS Kato downplayed the remarks, saying they did not represent the emperor’s views, but instead were the grand steward’s own views. Prime Minister Suga reiterated Kato’s statement on Friday. ● The organizing committee faced backlash for its initial decision to permit the sale of alcohol at stadiums. It reversed its decision on Wednesday, just days after the initial announcement that it would permit sales with a strict time limit. ● Suga said Monday that the government will consider holding the games without spectators if it declares another state of emergency. This comes after numerous health experts recommended holding the games without spectators. ● It also comes after the IOC, IPC, organizing committee, Tokyo and the Government of Japan agreed to set the limit for spectators at 10,000 people or 50 percent capacity at all venues. Reports suggest the opening ceremony’s spectator cap will be raised to 20,000 to make room for IOC members and sponsors. ● Tokyo Governor Koike announced on Saturday that the metropolitan government will cancel all plans to open public viewing sites in the capital. Many of the venues will be used as mass vaccination sites instead. 1 “Getsurei Keizai Hōkoku 月例経済報告” [Monthly Economic Report], Cabinet Office of Japan, June 24, 2021, https://www5.cao.go.jp/keizai3/getsurei/2021/0624getsurei/main.pdf 4 The Weekly Observer (6/21~6/25) 9. Other Developments ● Toshiba’s shareholders ousted board chairman Osamu Nagayama and a member of the audit committee on Friday.
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