JCP criticizes Koizumi Cabinet for yielding to U.S. demands on disposal of banks' bad loans

In the November 25 House of Councilors Budget Committee meeting, Daimon Mikishi of the Japanese Communist Party argued that the Koizumi Cabinet's policy of accelerating the disposal of banks' bad loans is exactly what U.S. investment banks and funds are calling for.

Daimon asked why the government should push banks into accelerating the write-off of bad loans, which only worsens the economic situation.

In explaining the background to the question, he said that the U.S. government and economic circles are demanding that Japan do so in order to give U.S. investment funds market access in Japan.

Citing U.S. President George Bush's letter to Prime Minister Koizumi and remarks of the U.S. Council of Economic Advisers (CEA) Chairman R. Glenn Hubbard, Daimon pointed out that since the September 2002 Japan-U.S. summit talks, the United States has interfered in Japan's policy of disposing of bad loans.

Using a panel display, he showed that the statements of senior U.S. officials and Japan's measures on bad loans correspond to each other and concluded that what U.S. officials have called for are embodied in Japan's policy of accelerating the write-off of bad loans.

While insisting that Daimon has a biased view on the issue, Prime Minister Koizumi said, "The United States expects much from Japan. We welcome that senior U.S. officials, based on such expectations, express their opinions."

Daimon refuted the prime minister, saying that it is unreasonable to make millions of Japanese people suffer from corporate bankruptcies and unemployment as a result of the accelerated disposal of bad loans under U.S. pressure. (end)