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Policy for Weaker Yen to Lead to Problems
Acting Secretary General for the Liberal Democratic Party of Japan Nobutaka Machimura said Friday in Singapore that increase in Japanese export can not totally depend on yen depreciation and that the idea of "Asian Monetary Fund" should be put into practice as means to respond to fluctuation in the foreign exchange rates.
Delivering a speech at a lecture organized by Singapore's Institute of Policy Studies and Lee Kuan Yew Exchange fellowship, Machimura affirmed that the policy to maintain a weaker yen will lead to problems although an increase in Japanese exports driven by decline in the yen is certainly good news for Japan which has weak domestic demand.
Referring to anti-globalisation demonstrations during the recent G-8 summit in Genoa, Italy, Machimura said that in the economic arena the business methods of the most influential U.S. companies can not be prevented from spreading throughout the world.
But he pointed out that U.S. argument regarding its environmental policy on the prevention of global warming is " hardly convincing".
"As for individual cultures, it is very important that we recognize cultures unique to each country hence cultural coexistence should be maintained," he said.
Machimura also advocated to strengthen and promote currency and financial cooperation for East Asia, saying the "Chiang Mai Initiative" launched at the ASEAN plus three financial ministers meeting held in Chiang Mai should be carried.
Answer a question on competition with China, Machimura said that in short or long term competition is natural between China and U.S. as well as between China and Japan.
He pointed out that the races between China and Japan is competitory on one side and complementary on the other side and he thinks that it is not right decision for Japan to stop import of the three categories of agricultural products from China.
China is a big country and also a big market, he added.
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