Ambassador of Japan HE Mr Yoshiji Nogami, 20.6.05
Talk at the House of Commons on Japan’s Foreign Policy.
Ambassador since September 04
Japan was the first Asian country to import the parliamentary cabinet system of the UK over 100 years ago – coming to the House is always a reminder of the long and profound history of democracy.
During the last few years the world has undergone a great many changes. Focus for the talk: two prominent items on Japan’s foreign policy agenda, namely the United Nations and East Asia. In addition Japan-UK collaboration and scope for its further development.
Japanese Economy
Japan's economy is the second largest in the world, accounting for 15% of total global GDP. This is about three times that of the UK and four times that of China. The Japanese economy seems to be in a much better shape than it has been for some years.
During the 'lost decade' of the 1990s the economy was in a state of continuing slump but at long last the Japanese economy is making a comeback. Corporate profits have risen steadily for ten consecutive quarters: a year-to-year increase of 17.6% was posted for corporate profits in the fourth quarter of 2004. In real GDP growth, positive factors including increased final private consumption and increased private inventories contributed to a 1.2% increase in the first quarter of 2005 over the previous quarter (4.9% annualised), marking the second consecutive quarter recording positive growth. Employment is improving with new job offers on a moderately increasing trend.
Structural economic issues have been addressed with progress on the disposal of non-performing loans in the banking sector. The ratio of such loans at the major banks has decreased from 8.4% in March 2002 to 2.9% in March 2005, achieving the government’s target of 4% by March 2005.
The Japanese economical recovery should be welcomed as it can add considerable impetus to the growth of the global economy. But what is more important is that the Japanese government and people are regaining confidence in themselves. This creates an outward-looking mindset which enables more participation in the foreign policy political arena.
UN Reform
In the post-Cold War world we face many threats and challenges which require co-ordinated responses by the international community. Japan has taken an active and constructive role in the maintenance of international peace and security. For example in Afghanistan in promoting the disarmament, demobilisation and reintegration (DDR) of ex-soldiers as a peace-building measure. Also in Iraq – Japan’s policy there is to support the reconstruction of Iraq through the deployment of overseas development aid (ODA) totalling £2.8 billion. Japanese Self Defence Forces are currently based in southern Iraq where the UK plays the leading role in providing security.
Japan is becoming very engaged in the Middle East Peace Process at this very critical phase of Israeli disengagement from the Gaza strips.
The UN is badly in need of reform and must change to reflect the 21st century. In particular the Security Council should be given more legitimacy and effectiveness. Developing countries in Asia, Africa and Latin America should be represented in permanent seats and all member states should be fully committed and assume responsibility for the maintenance of international peace and security.
Japan and East Asia
We hear a lot of negative views in North East Asia as Japan expands its international role. Japan welcomes the remarkable economic development of China – it is considered an opportunity to develop and strengthen the economic ties that Japan and China have built over the years. Prime Minister Koizumi and President Hu Jintao held a recent meeting to confirm the need to promote this important bilateral relationship.
Japan’s relationship with the Republic of Korea is also very important. It is essential to stand firm in the desire to resolve North Korean issues through close co-operation. It is vital to strengthen efforts to build upon the relationship between Japan and South Korea.
There are also tensions in the relationship with China and the Republic of Korea: Beijing and Seoul attribute the cause of the present situation to Prime Minister Koisuumi’s visits to the Yasukuni shrine or Japan’s history textbooks.
However recently the Chinese have stepped up their criticism of Japan: this could be because of what really lies in the shifting of geopolitical tectonic plates and an emerging new security balance in East Asia. Until the end of the 1990s, Japan was economically powerful, but politically shrunk and had a very inward-looking mindset. China, on the other hand, was a political power, but economically still weak. Now this is changing rapidly and East Asia has two countries both wanting to take a leadership role, both with strong political and economic power and will. China may well be acutely aware of this and feeling very uncomfortable about the ‘rise of Japan’. China may really want a Japan which is an economic power but a political dwarf. East Asia including Japan and China will need to learn to deal with and hopefully come to terms with the new regional power balance.
There are issues that the Chinese government should address including the lack of transparency both in its military and in the future of its economy.
Japan-UK relations
Not a single problem. Continued dialogue on Asia would be helpful.
We are two countries which share common values and numerous common interests, as well as a sense of the importance of acting to further global security. We are already co-operating in many areas, including Iraq and Afghanistan. But we must not be complacent about our good bilateral relationship and should aim to be the bridge between Asia and Europe.