Japan Sees Need to act Quickly on Trade Crisis

Japan is faced with a mounting crisis over its huge trade surplus and recognizes that it must act more quickly to refocus its export driven economy, a senior Foreign Ministry official said.

“The sense of crisis among the Japanese public as well as the government is increasing,” Deputy Director General Hiroshi Hirabayashi told reporters. “The need to accelerate the efforts (to restructure the economy) is well recognized.”

Hirabayashi said that gradual progress had been made to refocus the Japanese economy, but admitted that it might not seem all that spectacular to foreign observers.

Difficulties had been encountered in implementing the so-called Maekawa report since it was unveiled a year ago, he said. But, he added, foreign governments should appreciate the efforts that have been made.

The report, named for its principal author, former Bank of Japan governor Haruo Maekawa, called for a shift in Japan’s economy away from its dependence on exports for growth. The Japanese cabinet today reviewed progress made since its release.

According to Hirabayashi, Prime Minister Yasuhiro Nakasone told his fellow ministers that Japan must follow the direction set out by Maekawa and urged them to make efforts to achieve it.

Foreign Minister Tadashi Kuranari added that not enough had been done to publicize the action Japan was taking to refocus its economy.

Listing some of those actions, Hirabayashi said imports of manufactured goods have increased, interest rates have fallen, and coal, steel and non-ferrous metal output have been reduced.

He expressed hope that Japan will act more quickly in the future to implement the report and scoffed at a suggestion that it would take ten years for Maekawa’s goals to be met.

“It will not take very much time to fulfill the (goals) set out by the Maekawa report,” he said.