AMERICAN EMBASSY, TOKYO
PUBLIC AFFAIRS SECTION
OFFICE OF TRANSLATION AND MEDIA ANALYSIS
INQUIRIES: 03-3224-5360
INTERNET E-MAIL ADDRESS: tokyoots@state.gov
DAILY SUMMARY OF JAPANESE PRESS
March 28, 2002
---------------------------------------------------------------------------------------------------------------------INDEX:
(1)
Poll on Koizumi Cabinet, political parties
(2)
Poll: 29% refuse to vote for LDP
(3)
Chain of distrust (Part 1); Resignations from the LDP by two heavyweights
and the political community thereafter; Lawmakers alarmed about losing source of
political power
(4)
Chain of distrust (Part 2); Resignations from the LDP by two heavyweights
and the political community thereafter; With prime minister's popularity dropping,
ruling coalition again suffering from election-phobia
(5)
Council on Economic and Fiscal Policy reveals outline of arguing points about
drastic reform of tax system; Priority to be given to tax cuts in order to revitalize
economy; Financial resources to be secured through cuts in expenditures; Threestage implementation plan
(6)
Espionage for military intelligence; Key technology of missiles related to ontarget accuracy aimed at; Bold enough to have contacted dozen times in two and a
half years
(7)
The direction of a country that always takes a conspiratorial view of history

ARTICLES:
(1)
Poll on Koizumi Cabinet, political
parties
YOMIURI (Page 2) (Full)
March 26, 2002





Q: Do you support the Koizumi Cabinet?
(Feb.)




Yes
No
Other answers (O/A)
No answer (N/A)
50.6(53.0)
40.2(36.1)
1.9(2.8)
7.3(8.1)
Q: Give up to two reasons for your approval of the
Koizumi Cabinet.









Its political stance can be appreciated 38.2
Its policy measures can be appreciated 12.7
It's stable
7.3
The prime minister is trustworthy
26.6
It's achieved actual results
9.4
Because it's a coalition government of the
Liberal Democratic Party, New Komeito, and
New Conservative Party
7.4
It's better than its predecessors
56.6
O/A
3.5
N/A
1.4
Q: Give up to two reasons for your disapproval of
the Koizumi Cabinet.








Its political stance can't be appreciated 35.3
Its policy measures can't be appreciated 32.1
It's unstable
23.5
The prime minister is untrustworthy
26.1
It's failed to achieve noticeable results 39.6
Because it's a coalition government of the
Liberal Democratic Party, New Komeito, and
New Conservative Party
9.6
It's worse than its predecessors
2.4
O/A
3.3
2
1.0
Q: What do you want the Koizumi Cabinet to
pursue on a priority basis? Pick as many as you
like from among those listed below.

<Questions & Answers>
(Figures shown in percentage.)
N/A












Stock prices and other economic boosting
measures
42.3
Employment measures
49.4
Regain the nation's fiscal health
26.0
Write off bad loans
20.4
Scrap or privatize public corporations 18.7
Privatize the three government-run postal
services
10.3
Tax reform
24.0
Social security reform
24.7
Educational reform
19.2
Political reform, political ethics
23.6
International
contributions
to Afghan
reconstruction, etc.
5.0
Foreign affairs
12.7
Environmental protection
22.8
Crisis management
9.4
BSE (mad-cow disease) countermeasures13.5
O/A
0.2
Nothing in particular
6.3
N/A
1.2
Q: Do you think it possible for Prime Minister
Koizumi to carry out his restructuring initiative?





Greatly possible
Somewhat possible
Not very possible
Impossible
N/A
3.8
35.9
43.0
14.3
3.0
Q: Which political party do you currently support?
(Feb.)
 Liberal Democratic Party (LDP) 31.0(33.2)
 Democratic Party of Japan (DPJ or Minshuto)
7.3(7.0)
 New Komeito (NK)
2.6(2.7)
 Liberal Party (LP or Jiyuto)
1.4(1.6)
 Japan Communist Party (JCP)
2.2(2.5)







Social Democratic Party (SDP or Shaminto)
3.4(2.6)
New Conservative Party (NCP or Hoshuto)
0.2(0.2)
Independents Club (IC or Mushozoku no Kai)
0.1(0.3)
Liberal Federation (LF or Jiyu Rengo)
---(0.2)
Other political parties
---(0.1)
None
50.7(48.7)
N/A
1.2(0.8)
<Polling methodology>
 Date of survey: March 23-24.
 Subjects of survey: 3,000 persons chosen from
among all eligible voters throughout the country
(at 250 locations, on a stratified two-stage random
sampling basis).
 Method of implementation: Door-to-door visits
for face-to-face interviews.
 Number of effective respondents: 1,935 persons
(64.5%).
 Breakdown of respondents:
Male—48%,
female—52%.
Q: (Only for those who answered "yes") Why?
(multiple choices)




The prime minister is trustworthy
It's clean
The prime minister has leadership
Its policies are good
45(41)
28(28)
20(28)
19(24)
Q: (Only for those who answered "no") Why?
(multiple choices)




The prime minister lacks leadership
It's unstable
Its policies are bad
The prime minister is untrustworthy
52(32)
37(34)
37(32)
26(31)
Q: What do you want the Koizumi Cabinet to
pursue on a priority basis? (multiple choices)





Economic recovery
68(65)
Social security reform including pension and
welfare systems
46(44)
Employment
34(35)
Fiscal turnaround
31(28)
Administrative reform
29(27)
(02032605im)
Q: Which political party do you support or like
now?
(2)


Poll: 29% refuse to vote for LDP
NIHON KEIZAI (Page 2) (Extract)
March 26, 2002

<Questions & Answers>
(Figures shown in percentage. In parentheses denote
the results of a survey conducted in February this
year.)
Q: Do you support the Koizumi Cabinet?



Yes
No
Can't say (C/S) + don't know (D/K)
48(55)
39(34)
13(11)
3






Liberal Democratic Party (LDP)
41(48)
Democratic Party of Japan (DPJ or Minshuto)
14(14)
Social Democratic Party (SDP or Shaminto)
9(6)
Japan Communist Party (JCP)
5(5)
New Komeito (NK)
4(4)
Liberal Party (LP or Jiyuto)
4(3)
Other political parties
0(1)
None
18(17)
C/S + D/K
3(3)
Q: What do you think about Dietmember Muneo
Suzuki's resignation from the LDP?




It's only natural
It's unavoidable
He didn't have to resign from the party
C/S + D/K
76
19
3
2
Q: There are voices calling for Dietmember
Suzuki's resignation from the Diet. What do you
think about this?



He should resign from the Diet
83
He does not have to resign from the Diet 13
C/S + D/K
4
Q: What do you think about Dietmember Koichi
Kato's resignation from the LDP?




It's only natural
It's unavoidable
He didn't have to resign from the party
C/S + D/K
53
38
6
2
He should resign from the Diet
56
He does not have to resign from the Diet 37
C/S + D/K
6
LDP
DPJ
SDP
JCP
NK
LP
Other political parties
Cast a blank vote
Won't vote
C/S + D/K
LDP
JCP
NK
SDP
DPJ
LP
Other political parties
C/S + D/K
29
25
11
5
4
1
0
22
Polling methodology: The poll was taken by Nikkei
Research over the telephone on March 22-24. A total
of 3,000 persons were sampled out of all males and
females, aged 20 and up, across the nation. The rate
of effective respondents was 59.4%.
(3)
Chain of distrust (Part 1); Resignations
from the LDP by two heavyweights and the
political community thereafter; Lawmakers
alarmed about losing source of political power
NIHON KEIZAI (Page 2) (Excerpt)
March 21, 2002
Q: If there were a national election, which political
party or which political party's candidate would you
like to vote for?


















(02032606im)
Q: There are voices calling for Dietmember Kato's
resignation from the Diet. What do you think about
this?



Q: If there were a national election, which political
party or which political party's candidate would you
not like to vote for?
35
19
8
6
5
5
1
1
2
18
Scandals involving Muneo Suzuki and Koichi
Kato have exposed cozy ties between lawmakers and
bureaucrats as well as unclear fund flows that depict
the age-old nature of the Liberal Democratic Party
(LDP).
Prime Minister Koizumi intends to
reexamine back-scratching relationships between
politicians and bureaucrats to reinvent the political
system. His attempt is expected to meet with stiff
resistance from the LDP.
*****
4
fundamental shift in the nature of their relationships
with bureaucrats.
Ambitious reform plan
LDP executives met shortly after Kato
publicly announced his resignation from the LDP on
March 18. In the session, Prime Minister Koizumi
urged other members to review what was called the
Yasuoka report in cooperation with New Komeito
and Hoshuto (New Conservative Party). But the LDP
executives sniffed at Koizumi's suggestion.
The Yasuoka report is a collection of political
reform measures compiled by the National Strategic
Headquarters under the leadership of Okiharu
Yasuoka.
The report called for three points:
establishment of a solid Cabinet system under the
strong leadership of the prime minister; elimination
of bureaucracy; and putting an end to the practice of
politicians acting on behalf of special interest groups.
In essence, the report, modeling on the British
parliamentary system, called for abolition of the
practice of ruling parties screening Diet bills in
advance as well as for restricting direct contacts
between lawmakers and bureaucrats. A member
described it as an ambitious reform plan.
As soon as the report was produced on the late
afternoon of March 13, Yasuoka called on Prime
Minister Koizumi at his official residence. He
wanted to show the original report to the prime
minister before meeting with demanding requests
from LDP executives.
"Artless"
As expected, LDP members resented the plan.
Policy Research Council Chairman Taro Aso referred
to it as "artless."
New Komeito and Hoshuto, too, complained
to Secretary General Taku Yamasaki about the LDP's
failure to consult with them regarding the report that
concerned the foundation of parliamentary democracy.
The system of prior screening of bills that
endows lawmakers with political authority in
decision-making is their "source of power."
Although the ruling camp ostensibly pointed out a
"procedural failure," their real concern was a
5
Koizumi administration at watershed
On the afternoon of March 20, Prime Minister
Koizumi ordered Yamasaki and Yasuoka to conduct
full-fledged discussion at the National Strategic
Headquarters in the following week in order to reach
a conclusion before the end of March.
An
observation is spreading that with his Cabinet
approval rating nose-diving since the firing of
Makiko Tanaka as foreign minister, Prime Minister
Koizumi needs to bolster his popularity with a review
of the relationship between lawmakers and
government officials.
Whether or not the prime minister can stick to
his top-down approach is highly doubtful because
reviewing such relationships is a matter that concerns
every politician.
"Five postwar decades have passed and metal
fatigue is now obvious. A string of improprieties
indicate that Japan is in serious need of major reforms.
The Koizumi administration is now at the watershed,"
former prime minister Yasuhiro Nakasone said.
(02032505st)
(4)
Chain of distrust (Part 2); Resignations
from the LDP by two heavyweights and the
political community thereafter; With prime
minister's popularity dropping, ruling
coalition again suffering from election-phobia
NIHON KEIZAI (Page 2) (Excerpt)
March 22, 2002
Late on March 19, administrative chiefs of
factions in the Liberal Democratic Party (LDP) met at
a Japanese restaurant in Tokyo. In the session, many
expressed acute concern about the seriousness of
elections that start with the Yokohama mayoral
election on March 31, followed by the Kyoto
gubernatorial, Lower House 2nd district of
Wakayama, and Upper House Niigata by-election.
"The dropping Cabinet support rating really hurts."
The LDP accomplished an overwhelming victory in
the Upper House election last year. But the political
climate has changed dramatically over the last eight
months.
There were ominous signs. An opinion poll
conducted independently by the LDP in March
generally showed favorable results for the LDP in
Yokohama, Kyoto and Wakayama, but also indicated
close races in some areas. Furthermore, in Niigata
nearly 80 percent said "undecided." The poll clearly
portrayed the picture of LDP candidates struggling to
take the lead.
Reportedly, the LDP is even considering
replacing its candidate in Niigata.
The support rating for the Koizumi Cabinet
has plummeted from around 80 percent to nearly 50
percent after the prime minister fired Makiko Tanaka.
The prime minister's popularity was further
dampened by scores of scandals involving Koichi
Kato and Muneo Suzuki.
policy direction and take a vote on the resolution
seeking Suzuki's resignation from the parliament at a
Lower House plenary session.
The prime minister's action came under fire in
the LDP. Former foreign minister Yohei Kono, for
instance, criticized Koizumi's abrupt order as an act
hurting the unity of the LDP. "The prime minister
wants to be a good guy among a bunch of bad guys,
that's us. But such a strategy will not bring us a
victory in the elections," another LDP executive
fumed. Now that the prime minister's popularity is
no longer dependable, the LDP is becoming
increasingly critical of the premier – a classical
symptom of "election-phobia."
The Kyoto gubernatorial race was formally
announced on March 21. The election campaign
kicked off that day for the candidate supported by all
political parties except the Japan Communist Party
brought together the secretaries general of the three
ruling parties. LDP Secretary General Yamasaki
encouraged the candidate, saying, "You are a
champion of structural reforms and that is in line with
the Koizumi administration."
New Komeito's
Fuyushiba and Hoshuto's Nikai, however, did not
touch on the prime minister.
Anti-LDP image underlined
Discord
"Some people say that structural reforms have
not been proceeding. But the Koizumi administration
has yet to mark its first anniversary." In his talks with
former U.S. treasury secretary Rubin on the afternoon
of March 20, Prime Minister Koizumi expressed a
sense of alarm amid the growing adverse wind.
"Reform cannot be accomplished in a year. I need
more time."
Frustrated, Prime Minister Koizumi came up
with the idea of reinventing himself as the "anti-LDP"
premier in a bid to boost his popularity. With the
upcoming elections also in mind, the prime minister
urged Secretary General Taku Yamasaki to put an
early end to the problems of Kato and Suzuki, who
have already resigned from the LDP.
Armed with the new strategy, the prime
minister demanded that the ruling coalition shift its
6
Standing next to the three secretaries general,
the eyes of former secretary general Hiromu Nonaka
were cold. In addition to the declining popularity of
Koizumi and the discord among the three ruling
parties, a former town mayor, who was close to
Nonaka, joined the Kyoto gubernatorial race against
the LDP candidate. "Our camp is rocking," Nonaka
spat out.
There is this observation in the LDP: "If the
LDP is defeated in the elections, that can be taken as
a 'no' to Prime Minister Koizumi. And the party
leadership might be forced to take responsibility." A
call for a cabinet shuffle is still being heard.
"I will have to endure the adverse wind for
now," Prime Minister Koizumi said to himself late on
March 20 after the ruling parties vetoed the resolution
calling for Suzuki's resignation. The prime minister
has yet to come up with any election strategy that can
supplement his soggy popularity.
(02032704st)
(5)
Council on Economic and Fiscal Policy
reveals outline of arguing points about drastic
reform of tax system; Priority to be given to
tax cuts in order to revitalize economy;
Financial resources to be secured through cuts
in expenditures; Three-stage implementation
plan
NIHON KEIZAI (Top Play) (Slightly abridged)
March 27, 2002
The government's Council on Economic and
Fiscal Policy (CEF) on March 22 unveiled an outline
of arguing points about a drastic reform of the tax
system. The package is expected to be publicized at
the end of the month. According to the outline,
reform would be carried out, based on a three-stage
implementation plan starting in fiscal 2003. For the
first two years of the implementation plan, priority
would be given to tax cuts, including a reduction in
the gift tax, which is expected to lead to revitalizing
the economy. Tax cuts would be financed with
spending cuts and the sales of national property. No
national bonds would be floated for this purpose.
Another aim of efforts to compile a budget premised
on the prioritized implementation of tax is to promote
structural reforms through enhanced spending
efficiency.
The reform schedule for drastic reform of the
tax system is linked as a set to the medium-term
outlook for structural reforms, the economy and state
finances, which the CEF formulated in January. The
reform schedule covers the timeframe until the
beginning of the 2010s. The approach is to facilitate
reform of the tax system in three stages –
revitalization – drastic reform of the system – fiscal
reform.
7
To be concrete, the reform schedule will
characterize the first two years starting in fiscal 2003
as an intensive coordination period for the Japanese
economy and prioritize tax cuts during this period for
the purpose of generating the vitality of individuals
and companies. Given the situation of elderly people
having an outstandingly large portion of financial
assets, the package features expansion of the amount
of exemption from the gift tax imposed on the
lifetime gifting of home acquisition money. The aim
is to boost the transfers of assets to the working
generation.
The package will also call for expansion of
tax preferential measures that will lead to increased
corporate investment in research and development
activities and a revitalized securities market.
Chances are that some of the proposals for tax cuts
might be implemented before the end of fiscal 2002.
Tax cuts would be financed with spending cuts and
the sales of national assets. The CEF calculates that
if fiscal resources squeezed out through efficient
expenditures are used to finance tax cuts, the public
will understand structural reforms more deeply.
In the middle stage of the reform schedule,
efforts would focus on consolidating and simplifying
the tax system, including the lowering of the
minimum amount of income subject to taxation. The
scope of taxation would be widened in such areas as
the income, corporate and inheritance taxes. In the
meantime, the gradient of the curve of the current
progressive income tax would be moderated to realize
the base of a tax system that rewards efforts. A twodimensional income tax system of combining income
from financial transactions and lowering taxes on
such, by separating them from salaries, would also be
introduced. Over the long term, from the perspective
of making the nation's finances sound, the CEF will
look into the possibility of hiking the consumption
tax concurrently with reform of the social security
system.
The CEF will compile basic guidelines for
reforming the tax system in June to reflect such in the
compilation of a state budget and reform of the tax
system for fiscal 2003. Many members of the
government's Tax System Research Council (advisory
organ to the prime minister), which is concurrently
pursuing discussion of reform of the tax system, are
critical of the idea of prioritizing tax cuts. It is,
therefore, necessary for the government to unify
views by June.
The LDP's Tax System Research Commission,
which virtually has the right to decide on reform of
the tax system, is likely to start full-fledged
discussion when proposals for reform of individual
items come out.
Sparrow missile. Such manuals are used to check
whether gyroscope or gyrocompass [?] functions
properly, being categorized as classified information
essential for retaining the on-target accuracy.
The Sparrow missile is one of the major weapons
widely used by North Atlantic Treaty Organization
(NATO) members. It was developed in 1946 by the
United States as an all-weather missile usable at night
and in spite of bad weather. Later, technical
innovation raised the level of the on-target accuracy
of that missile.
(02032705yk)
(6)
Espionage for military intelligence; Key
technology of missiles related to on-target
accuracy aimed at; Bold enough to have
contacted dozen times in two and a half years
SANKEI (Page 31) (Excerpts)
March 23, 2002
A 43-year-old former member of the Russian Trade
Representative Office in Japan, Shelkonogov, faces
espionage charges for having sought confidential
military information from the president of a defense
equipment firm who formerly served as Air SelfDefense Force (ASDF) warrant officer. The military
intelligence the Russian trade representative
requested is highly suspected of information on flight
control technology that decides on the on-target
accuracy of the Sparrow missile – an air-to-air missile
used by U.S. troops in the Gulf War. This missile is
also installed in F15s. Informed sources revealed all
these details on March 22. Japanese and U.S. defense
officials were both shocked and perplexed to learn
that their national interests had been threatened by
espionage by the former trade representative who
belonged to the Russian military's Main Intelligence
Administration (GRU ), one of the mighty
intelligence agencies on the globe.
According to informed sources, the intelligence the
Russian side sought to obtain was management
manuals of measuring instruments related to flight
control of the radar-guided intermediate-range
8
The management manuals consist of software such
as for working process, and analytical devices and the
like. They can precisely check the accuracy of
measuring instruments related to flight control. The
manuals are a kind of the crème of state-of-art
technology.
The company president, when he served as officer in
the ASDF, was tasked with precise measurement of
missiles. After retiring from the ASDF, he runs a
sales company of defense-related equipment for the
Defense Agency (JDA). Accordingly he has been in
a position to access easily information on flight
control of the Sparrow missile.
Former trade representative Shelkonogov approached
the company president in the summer of 1997, and
since then he had contacted that president a dozen
times downtown in Tokyo. At one time the two were
bold enough to meet at a restaurant only 100 meters
away from the Shibuya Police Station.
Informed sources gave these comments:
"Should Russia obtain technology that
decides on the on-target accuracy of
the [Sparrow] missile and be able to
raise the level of missiles it posses,
and also should Russia find out the
weak points of [the Sparrow] missile,
Russia could have a battle with the
Western bloc in the way that will be
advantageous to Russia. This may be
the purpose of [espionage]" and "Give
the widespread use of the Sparrow
missile, should the weak points of its
mechanism come to light, it would be
a threat in strategic aspects."
obtaining defense secret was proved to be involved in
a criminal case.
[Yosuke Osanai]
Invoking of the Japan-U.S. secret protection law meet
national interests of two countries
In investigating into spying charges against a former
official of the Russian Trade Representative Office in
Japan for seeking military secrets, the Tokyo
Metropolitan Police Department's (MPD) Public
Security Division invoked the Japan-U.S. secret
protection law (put in force in 1954) as the first
espionage case covered by the law.
The purpose of the Japan-U.S. secret protection law
is to protect defense secret on equipment and
information provided by the United States. Under the
law, intelligence agents and their supporters who are
collecting or leaking defense secrets for the purpose
of harming Japan's security are both exposed. The
law is featured by this punitive measure that plots,
instigation and demagoguery are respectively subject
to punishment.
Public security authorizes have applied to the case
"instigation for detection and collection" (Article 5).
When the former ASDF warrant officer was
questioned this January, public security authorities
were unable to make it clear whether missile-related
technological information the warrant officer tried to
obtain is categorized as defense secret under the law.
Consequently, consultations between [public security
authorities] and the Tokyo District Public Prosecutors
Office on the case hit a snag. At one point, an
investigator stated, "The possibility of proving a
criminal case is fifty-fifty."
Later, however, public securities authorities,
obtaining cooperation from the Defense Agency and
the United States, proved the Russian representative's
act to be a crime, a step that led them to move toward
bringing out the truth of this espionage case. For now,
only the documents pertaining to this spying case
were submitted to the public prosecutors' office, but
this exposure meets the national interests of Japan
and the United States as the Russian official aiming at
9
"We have not heard" of involvement of SDF
personnel on active service; JDA desperate in
quieting down impact of scandal
The Defense Agency (JDA) is desperately quieting
down the impact of this scandal, with its leading
official remarking, "For the present, we are watching
how investigations will develop." Self-reflecting on
the secret leakage scandal involving a Maritime SelfDefense Force (MSDF) lieutenant commander of 12
years ago, the JDA amended the Self-Defense Forces
(SDF) Law last December by improving and
strengthening the mechanism of not leaking defense
secret. As a result, not only the JDA but also
suppliers contracting with the JDA are both subject to
punishment. The method of getting defense secret
through a private firm "has never occurred in the
past" (senior ASDFA official), though the scandal
this time reveals that a former SDF personnel was
involved in it.
ASDF Chief of Staff Ikuo Tootake mentioned the
former warrant office in question in a regular press
conference on March 22 and stated, "We have yet to
have a full picture of the case." Tootake reserved his
answers to most questions posed there, but on the
question of whether any one of the SDF personnel on
active service was involved in the scandal," he denied
it, saying, "I have not heard of such for now."
Firms the JDA has so far contracted with during the
past 10 years total 800. In this regard, a senior ASDF
official noted:
"Manufacturers of radar and missiles,
for example, share information. In the
case of leading firms, their leaking
information is inconceivable because
we cancel all business deals with them
if such occurs, but in the case of small
firms, it is difficult to check them."
(02032605ku)
(7)
The direction of a country that always
takes a conspiratorial view of history
NIHON KEIZAI (Page 15) (Full)
March 21, 2002
There is an unfair trick that must not be used
by persons who consider themselves intellectuals.
That device is to take a conspiratorial view of history.
Such persons argue vehemently that "what is wrong
in the world is so and so's fault," and they use the
logic that "if only that bad person were gone, things
in the world would get better." Such arguments are
easy to understand and, like a morality play, is an
effective method of appealing to people.
Conspiracy theories suddenly spring up
without a trace of any cool-headed analysis having
been done beforehand. They plant the seed of hate in
people's minds and make people believe, by ignoring
the complexities of the world around us, that the
future will be wonderful if we can only punish the
bad guys. Efforts must be made to overcome such a
tendency to see conspiracies, if policy debates are to
make progress, but the attractiveness of conspiracy
theories can cloud people's minds at any time.
If an intellectual stumble across a conspiracy
theory, efforts should be made to counter it by
verifying what is the truth. One must prove by listing
the facts the fallacy of a conspiracy theory that this
world is being controlled by the absolute will of a
small group of people. Indeed, it was through such
efforts that modern science could be championed. If
that had not been possible, we would still be under an
ancient primitive religion that required virgin
sacrifices to appease the gods.
However, in Japan, the same old kind of
conspiratorial theories are immensely popular. Delve
beneath the surface of self-styled intellectuals and
you find them full of lies. As a result of the tardiness
in Japan of disposing of non-performing loans,
people are still looking for human sacrifices, going
out of their way to point the finger at someone for
being responsible for the worsening economy or
financial situation. It has become a veritable witchhunt.
10
The most recent target has been foreign
capital. According to a briefing paper used by a
senior official of a responsible agency to persuade
members of the Diet at Nagata-cho, foreign firms are
supposedly the root cause of the various evils by their
short-selling of stocks. The document includes such
parts as: Since "many foreign firms are thinking of
withdrawing from Tokyo, there is a great possibility
of them running out without paying for what they've
eaten," and so, "depending on the case, we need to
think of punishing such, targeting the company
officers themselves and not the securities firm."
What one can visualize by this are traders who are
being threatened now hurriedly buying back shortsale positions.
The paper argues that the short-selling of
stocks by foreign companies has kindled the financial
crisis. That is because "the Tokyo branches of
foreign firms employ at each location 100 – 150
financial experts, whose salaries annually exceed 100
million yen, and if there are no new non-performing
loans to use as material [for business], they will not
be able to maintain those personnel." The argument
is nonsense. This is the kind of brain drivel that we
find coming out of the pinnacle of our country's elite
bureaucracy. It may feel good to detest foreign firms
but by jumping on that bandwagon, we forget to
pursue the real problem areas. More and more, Japan
seems to have reached the end of the line.
(02032703bb)