Obuchi defends economic policies in Post interview
WASHINGTON, Sept 19 (Reuters) - Japan has already taken every measure to pull itself out of recession short of a ''wartime economy'' of massive military spending increases, Prime Minister Keizo Obuchi told the Washington Post in an interview published on Sunday.
On the eve of his departure for New York where he will hold his first summit meeting with President Bill Clinton on Tuesday, Obuchi said that Japan is already slicing interest rates, cutting taxes and pumping billions of tax dollars into the economy to try to reverse its decline.
Perhaps the only traditional ''remedy'' left, he told the newspaper, would be to build up a ''wartime economy'' with increased defense spending leading the way to new jobs and industrial growth.
Obuchi said he would never consider that option, but the Post said he raised the subject and discussed it at length in the hour-long interview at his private residence.
By even mentioning military spending, Obuchi may have been sending a message of frustration to officials in the United States and Asia who have been harshly critical of Japan's response to its economic crisis, according to the newspaper.
Obuchi noted that America's recovery from the Great Depression was spurred in part by jobs created by the defense industry gearing up for World War Two and that the United States remains the world's major exporter of weapons.
Obuchi said that option is not available to Japan, which has interpreted its constitution, written by U.S. officials during the postwar occupation, to mean that all weapons exports should be banned.
''We want to make it very clear that we have no intention of resorting to (military spending increases) and we are strongly determined to restore the economy without it,'' Obuchi said.
The Clinton-Obuchi summit comes at a time of great frustration and friction between Tokyo and Washington. Obuchi told the Post that allies such as France had been offering ''encouragement'' to Japan in its hour of need, while the United States offered ''not encouragement but advice.''
The Post described Obuchi as relaxed and funny and said the Japanese leader often spoke in English. He did not consult notes or read from a prepared script.
On the Monica Lewinsky sex scandal gripping Washington and threatening Clinton's presidency. Obuchi said the matter would have ''no influence at all'' on Japan's dealings with Clinton or the United States.
''It is true of course, on the other hand, that the Japanese public is interested'' in the scandal, he said. ''As one of the major desires of human beings, this sexual desire naturally attracts much attention. Maybe, for the Japanese male, Viagra is another thing of interest,'' he said. |
