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Prime Minister Koizumi Off to a Fast Start

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Prime Minister Koizumi Off to a Fast Start Japan Information and Culture Center, EMBASSY OF JAPAN PRIME MINISTER KOIZUMI OFF TO A FAST START Tens of millions of Japanese left on holiday for the annual “Golden Week” vacations in early May, hopeful that the stunning election victory of new Prime Minister Junichiro Koizumi will breathe new life into Japan’s economic and T political life. Sworn in by parliament on April 26, Koizumi’s surprise victory in the race to head the ruling Liberal Democratic Party (LDP) came under the slogan, “Change the LDP, Change Japan.” In winning over the party’s 2.3 million rank-and-file members and besting the early favorite, former Prime Minister Ryutaro Hashimoto, Koizumi, 59, promised major changes, and said, “It is the individuals that moved politics.” The former health minister and career politician, who has won record approval ratings of 87.1 percent since taking office, told the Diet in his inaugural speech, “We must embrace difficulties ahead, overcome barriers of special interests and free ourselves of past limitations as we create an economic social structure befitting the 21st APR/MAY 4/ 2001 5 century in the spirit of ‘no fear, no hesitation, and no constraint.’” Koizumi comes from a political family; his grandfather was speaker of CONTENTS the lower house of the Diet and his father served as defense minister. The new Prime Minister succeeds Yoshiro Mori, who stepped down New government formed after completing just over a year in office, after replacing Keizo Obuchi A new “revolutionary” cabinet promises last April 5, who fell ill and passed away on May 14, 2000. As Japan’s to carry out the battle for bold reforms. 2 ninth prime minister in 10 years, Koizumi, and his LDP’s coalition Keynote address to Diet allies face a crucial test in elections for the upper house of the Diet Prime Minister spells out his domestic scheduled for July. The financial markets welcomed Koizumi’s victory, plans and foreign policy goals. 2 as the economy remains the nation’s top priority. The Prime Minister, Bilateral exchanges begin who graduated from Keio University and studied at the London School Talks start quickly on financial, defense of Economics, has promised to control Japan’s public debt while and environmental matters. 3 continuing structural changes to boost the nation’s growth, saying “without structural reforms there can be no economic recovery.” Akihabara, “electric” district Koizumi also said that the Japan-U.S. security relationship remains The mecca of high-tech gadgets adjusts with the times; What’s hot on the net. 4 “the foundation” of Tokyo’s foreign policy. The Prime Minister will meet with President Bush on June 30, at Camp David presidential Viewpoint retreat outside of Washington. The brewing of sake is a fine art. 5 see page 2 Mystery of Horyuji’s age Nara temple may be older than thought. 6 World Cup tickets on sale 6 Beyond Differences Japan had a surprisingly large impact on a jaded Victorian America. 7 Traditional music revival School instruction spurs new interest. 8 Japan Now is online! Prime Minister Junichiro Koizumi. (Cabinet Public www.embjapan.org/jicc.html Relations Office, Japan) NEW GOVERNMENT DIET ADDRESS IS FORMED The Prime Minister made his keynote New Prime Minister Junichiro Koizumi made speech to the Diet on May 7, pledging to good on his promise during the campaign to push ahead with revolutionary changes, bring change to Japanese politics by “without sanctuary.” In the 30-minute appointing a 17-member cabinet on April 27 T address, he said, “The top priority that I N which includes a record five women, two men must address is to rebuild our economy and in their 40s and three people from the private sector. reconstruct our society into ones full of pride and The cabinet also includes Japan’s first woman confidence,” reiterating his campaign vows to foreign minister, Makiko Tanaka, daughter of the tackle, economic, fiscal, administrative, social and former prime minister Kakuei Tanaka, and according political structural reforms. To highlight the to polls among Japan’s most popular politicians. importance of the challenges the Prime Minister Noting that the cabinet is “revolutionary,” she said on sees ahead, he said: “Since the outset of the 1990s, her appointment that “the basic defense stance is the however, the Japanese economy has been unable to security alliance with the United States.” break free from long-term stagnation as trust in In announcing his new team, the Prime political leadership has been eroded and our society Minister said, “The Koizumi cabinet will be a cabinet has become enveloped with disillusionment. It is which carries out bold reform. There will be opposing now apparent that the structures that hitherto served forces against reform. The battle has begun today. We us so well may not be appropriate for our society in should never bow to resistance.” the 21st century.” On the economy Koizumi offered a two-stage plan which he descried as both bold and flexible, and to press structural reform and the disposal of MEMBERS OF THE bad bank debt. The main points: NEW CABINET: • The Prime Minister pledged to revitalize the economy while beginning to rein in the enormous Prime Minister Junichiro KOIZUMI debt levels through a two-step fiscal policy. Minister of Public Management, Home • The first step would focus on capping new Affairs, Posts and Telecommunications Toranosuke KATAYAMA borrowing and reviewing how spending has been Minister of Justice Mayumi MORIYAMA Minister for Foreign Affairs Makiko TANAKA allocated. Koizumi aims to keep new government Minister of Finance Masajuro SHIOKAWA bond issuance at current levels of around $247 Minister of Education, Culture, Sports, billion or less in the fiscal 2002/2003 budget. Science and Technology Atsuko TOYAMA • The second stage would press more fiscal reform Minister of Health, Labour, and Welfare Chikara SAKAGUCHI Minister of Agriculture, Forestry once solid growth was restored, for instance by and Fisheries Tsutomu TAKEBE limiting fresh bond issuance to service existing debt. Minister of Economy, Trade and Industry Takeo HIRANUMA Koizumi said the Council of Economic and Fiscal Minister of Land, Infrastructure Chikage OGI Policy would outline more details by June. and Transport (Hiroko HAYASHI) • Banks would have to dispose of their bad loans Minister of Environment Yoriko KAWAGUCHI Minister of State, Chief Cabinet within two or three years, and to take concrete steps Secretary, (Gender Equality) Yasuo FUKUDA to limit their holdings in stocks. Minister of State, Chairman of the • Koizumi said he would place a priority on National Pubic Safety Commission structural reform, although various safety nets for (Disaster Prevention) Jin MURAI Minister of State, Director — General the unemployed and financing support for smaller of the Defense Agency Gen NAKATANI firms would be considered. (The Prime Minister will Minister of State (Okinawa and Northern chair a panel on jobs, Health, Labor and Welfare Territories Affairs, Science and Minister Chikara Sakaguchi said May 11). JAPAN Technology Policy) Koji OMI • The Prime Minister said he would swiftly NOW Minister of State (Financial Services Agency) Hakuo YANAGISAWA Minister of State (Economic and Fiscal implement an emergency economic package, Policy, Internet Fair 2001 Japan, IT Policy) Heizou TAKENAKA including various tax reforms to revitalize the 2 Minister of State (Administrative Reform, nation’s stock market. Regulatory Reform) Nobuteru ISHIHARA • The Prime Minister promised to carry out steps, in a short period of time to encourage more individuals to participate in the stock market, such as reducing NEW BILATERAL TALKS capital gains taxes. • Deregulation will be pressed to create a more competitive economic environment, he said. (Koizumi also endorsed another special panel on • FINANCE. Cooperation on international deregulation which held its first session May 11.) financial issues also got off to a quick start • The Prime Minister pledged to strengthen the Fair with Finance Minister Masajuro Shiokawa Trade Commission to assure competition in markets. visiting Washington for a Group of Seven (G-7) The Prime Minister also made no pretense F meeting and to confer with U.S, Treasury that the changes would be easy, and warned that Secretary Paul O’Neill on April 30, just four days after painful adjustments lie ahead. “In the process of his appointment. Secretary O’Neil praised the Minister implementing such structural reforms, we will need as “a vigorous and forceful communicator” who to scrap and re-build inefficient sectors in order to appeared dedicated to reform. Shiokawa assured his achieve rejuvenation of certain sectors, and this colleagues Japan would take the necessary measures process may result in some pains in our society.” “to meet the government’s (annual growth) target of 1.7 On foreign policy, the Prime Minister percent.” Minister for Economic and Fiscal Policy stressed the importance of relations with the United Heizo Takenaka visited the U.S. May 3-4 for meetings States, and vowed to work with China, South Korea with White House Economic Adviser Lawrence and Russia and to keep the peace in Asia. Lindsey, Council of Economic Advisers Chairman “The prosperity that Japan enjoys is based Glenn Hubbard and U.S. Trade Representative upon the Japan-U.S. relationship that has functioned Ambassador Zoellick. He described interest among effectively. Based on the foundation of the Japan- U.S. officials in a Japanese recovery plan as “stronger U.S. alliance, we must maintain and enhance than my expectations.” And Japanese officials met Japan’s friendly relations with its neighbors, again with Secretary O’Neill at the “ASEAN PLUS 3” including the People’s Republic of China, the meetings in Hawaii May 9-11, where the Southeast Republic of Korea and the Russian Federation.” Asian grouping, Japan, China and South Korea “Our relations with the People’s Republic of discussed a Japanese-proposed regional currency plan China are one of the most important bilateral to forestall future financial crises.
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