Japan -- Economic Reform

Everyone knows that addressing Japan's non-performing loan problems and improving the strength of corporate balance sheets will be difficult. However, as we learned so well in the late 1980s in the United States, the benefits of determined action will be considerable and far outweigh the costs of adjustment.

We believe tackling these problems is vital to restoring a strong and vibrant economy to Japan. We value our strong alliance with Japan, and we believe a strong Japanese economy will contribute to the growth of the world economy and to the security and stability of the Asia Pacific region and the world.

The United States welcomes the leadership shown by Prime Minister Koizumi to revitalize the Japanese economy. He and Minister Takenaka have laid out an approach to dispose of non-performing loans. We strongly support the efforts to achieve these important goals.