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INFO RHEHAAA/NSC WASHDC IMMEDIATE
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
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RUEHOK/AMCONSUL OSAKA KOBE 5796
RUEHKSO/AMCONSUL SAPPORO 2567

UNCLAS SECTION 01 OF 09 TOKYO 000157 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EEB AND EAP/J 
STATE PASS USTR FOR AUSTR CUTLER, BEEMAN, AND HOLLOWAY 
NSC FOR LOI 
EPA 
 
E.O. 12958: N/A 
TAGS: ETRD EAGR SENV EFIN PGOV EINV JA
SUBJECT: EMINENT PERSONS' GROUP SUGGESTS A NEW FRAMEWORK 
FOR U.S.-JAPAN ECONOMIC DIALOGUE 
 
¶1.  (SBU) Summary:  An eminent persons' study group 
organized by the Ministry of Foreign Affairs (MOFA) will 
report to Foreign Minister Nakasone January 23 on its 
work regarding a new economic dialogue between the U.S. 
and Japan.  MOFA officials called in econoffs to say the 
group recommends the dialogue focus on five pillars: 
economic growth, global issues, economic and trade 
relations with emerging economies, U.S.-Japan engagement 
in the Asia-Pacific region, and economic reform.  Chaired 
by Deputy Foreign Minister Yoichi Otabe, the study group 
argues the U.S. and Japan should conduct their future 
economic dialogue through two parallel tracks, one 
focused on global issues such as climate change and 
energy, the other on economic growth as well as trade and 
investment liberalization.  MOFA would like to see a new 
dialogue launched as early as July 2009, but has not 
begun formal coordination with other ministries on a 
unified position.  Second North America Division Director 
told econoffs MOFA will continue to consult with 
Washington on the process.  The English translation MOFA 
provided of the report is contained in paragraph 6.  End 
summary. 
 
¶2.  (SBU) A study group chaired by Deputy Foreign 
Minister Otabe identifies five pillars that should 
constitute the framework for a new U.S.-Japan economic 
dialogue, according to Noriyuki Shikata, Director, MOFA 
Second North America Division.  The report also envisions 
engagement proceeding on two parallel tracks:  global 
issues (climate change, energy, food security, emerging 
economies, the role of the IMF) and a "strategic economic 
dialogue" that would focus on growth as well as trade and 
investment liberalization.  Shikata called in econoffs to 
preview the study group's draft report, which MOFA is to 
provide in final to the media following the group's 
briefing to Minister Nakasone January 23.  Shikata said 
he had discussed some of these proposals during his visit 
to Washington in January.  MOFA plans to post Japanese 
and English language versions of the report on its 
website:  http://www.mofa.go.jp/region/n- 
america/us/index.html. 
 
The Five Pillars 
---------------- 
 
¶3.  (SBU) The report's five pillars cover areas it 
identifies as key for economic cooperation in the U.S.- 
Japan bilateral relationship: 
 
¶I. Economic Growth. 
 
II. Global issues. 
 
III. Coordinated approaches to economic and trade 
relations with emerging economies. 
 
IV. U.S.-Japan engagement in the Asia-Pacific region. 
 
¶V. Growth through economic reform in both the U.S. and 
Japan (reform of Japan's agriculture sector, tax system, 
and education are among the areas mentioned in the 
report.) 
 
¶4.  (SBU) Shikata said the study group's recommendations 
reflect a consensus that while there were a number of 
successes under the current regulatory reform, 
investment, and trade-related initiatives that comprise 
the U.S.-Japan Economic Partnership for Growth, recent 
progress has been limited.  The report cites Japan's 
agriculture policy as a continued impediment to the GOJ's 
ability to play a more active role in the WTO Doha 
Development Agenda.  Similarly, without changes in 
government positions on agriculture, it cautions Japan 
will lag further behind countries such as China, Korea, 
 
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and Australia that are more aggressive in concluding free 
trade agreements. 
 
"No Drastic Changes" 
-------------------- 
 
¶5.  (SBU) Shikata said the report proposes "no drastic 
changes" to current U.S.-Japan engagement on economic and 
trade issues, although he noted a possible standalone 
dialogue on global issues such as climate change, the 
environment, and energy would represent a break from the 
current, unified dialogue format.  Shikata said the GOJ 
hopes that PM Aso could meet with the President before 
the G-20 Leaders Summit in London April 2, possibly as 
early as February, and that the new modalities for a 
dialogue could be announced in July at the Rome G-8 
Leaders' Summit.  He said MOFA has not yet begun 
coordinating with other ministries on a GOJ-wide position 
for a future U.S.-Japan dialogue and that MOFA wants to 
consult with the new Administration throughout this 
process. 
 
¶6.  (SBU) Text of the Study Group's Report (English 
translation provided by MOFA): 
 
Begin text: 
 
"Proposal for the construction of the future Japan-U.S. 
economic relationship under the new U.S. administration" 
 
provisional translation (issued on 23rd January, 2009) 
 
Report of: "The Advisory Panel for the coming global 
economy and the Japan-U.S. economic relationship" 
 
Takatoshi Ito, Professor, Graduate School of Economics 
and Graduate School of Public Policy, University of Tokyo 
 
Shujiro Urata, Professor of International Economics, 
Graduate School of Asia-Pacific Studies, Waseda 
University 
 
Shinichi Kitaoka, Professor, Graduate School for Law and 
Politics, University of Tokyo 
 
Kazuyuki Kinbara, Director, International Economic 
Affairs Bureau 1, Nippon Keidanren 
 
Kazumasa Kusaka, Executive Advisor, Dentsu Inc. 
Junichi Sugawara, Senior Research Officer, Research 
Department-Public Policy, Mizuho Research Institute Ltd. 
 
Fumiaki Nishi, Director General, Japan-U.S. Business 
Council 
 
Yukio Yoshimura, Head of Government Affairs, Corporate 
Administration Division, Nikko Citi Holdings Inc. 
 
Introduction 
 
In 2008, global financial/economical market faced the so- 
called "once-in-a-century" crisis.  This crisis stemmed 
from the world's largest economy - the U.S.  Financial 
uncertainty in the U.S. which stemmed from the sub-prime 
mortgage loan problem led to a global financial crisis 
upon the bankruptcy of the Lehman Brothers, and deeply 
affected other countries' real economies, not to mention 
within the U.S.  The crisis revealed problems in 
financial/economic system of each country.  It also 
revealed that we need wisdom and drastic approach in 
order to overcome this crisis and settle the economy back 
on a new growth track. 
 
We cannot discuss global finance/economy without 
 
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considering the roles and responsibilities not only of 
the developed countries, but also of emerging economies 
and the resource-rich countries as seen in the "Summit on 
Financial Markets and the World Economy" held last 
November, and in the stagnant WTO Doha round talks. 
Moreover, we cannot discuss tackling global issues such 
as poverty, climate change, energy and food without 
cooperation from these countries.  However, regarding 
such transformation of the international society, Japan 
and the U.S., the two largest economies, are strongly 
expected to exercise their leadership, and to fulfill 
their appropriate roles and responsibilities. 
 
Under these circumstances, Mr. Barack Obama was 
inaugurated as the 44th U.S. President on January 20th, 
2009 and the Obama administration has started.  For both 
Japan and the U.S., the first priority issue for the time 
being, is to work on swiftly implementing effective 
measures to stimulate the domestic economy.  However, 
overcoming the current severe financial/economic 
situation and creating a new economic growth model 
therefrom and then leading the global economy, is not 
only indispensable for the growth of Japan and the U.S., 
but also the most important task for which the two 
countries need to cooperate and pursue under the current 
situation because the two countries are the world's 
largest economies in alliance.  To that end, what exactly 
should Japan and the U.S. achieve under coordination? 
Moreover, what kind of a role should Japan and the U.S. 
cooperatively play in the process of building 
international economic order after overcoming the 
financial crisis? 
 
Being aware of the facts mentioned above, our panel has 
been gathered and discussing since last September, 
responding to invitations from Director-General of 
Economic Affairs Bureau of the Ministry of Foreign 
Affairs.  Hereby, we present our report based on these 
discussions to Minister of Foreign Affairs of Japan, as a 
proposal for the Japanese economic diplomacy toward the 
U.S.  The proposal connotes messages given toward the 
U.S. government, the Japanese and the U.S. citizens, 
business communities, mass media and the NGOs.  The 
proposal also addresses some issues that Japan has to 
tackle for its own growth.  The effect of the proposal 
will be enlarged through cooperation with the U.S., the 
only ally of Japan, and hence the proposal will benefit 
the U.S., Asia-Pacific region and the international 
community as a whole.  We hope the proposal will inspire 
the Japanese economic diplomacy toward the U.S. 
 
Opinions expressed in the panel by the panel members 
belong to each individual panel member and hence do not 
represent the views of the organizations to which they 
belong. 
 
(Drafted by): The Advisory Panel for the coming global 
economy and the Japan-U.S. economic relationship. 
 
¶1. Situation surrounding the economic relationship 
between Japan and the U.S. 
 
The economic relationship between Japan and the U.S. has 
changed from the relationship characterized by "friction" 
to that of "cooperation".  Japan's share in the U.S. 
trade deficit, which peaked at around 70% in 1991, has 
since steadily decreased to around 10% in 2007.  Through 
such factors, economic friction issues that become 
political problems have decreased in the current economic 
relationship between Japan and the U.S., and it can be 
said that the relationship has become more smooth and 
friendly.  Those who take up this situation negatively 
say that the age of "Japan bashing" has shifted to the 
age of "Japan passing", and further on to the age of 
 
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"Japan nothing." 
 
In reality however, the importance for Japan and the U.S. 
to further strengthen the bilateral economic relationship 
and to promote Japan-U.S. cooperation in tackling the 
various challenges in the Asia-Pacific region and on the 
global level, has never been greater.  In making this 
proposition on Japan's new economic diplomacy toward the 
U.S., we would like to briefly reflect upon the current 
situation surrounding the economies of Japan and the U.S. 
 
The U.S. economy is undergoing a recession due to the 
current severe financial/global economic situation. 
President Obama has called for job creation through 
technological innovation/expansion of public works in the 
energy/environment sector, and the U.S. 
Government/Congress cannot avoid concentrating on the 
domestic economic recovery measures such as the 
reconstruction of the automobile industry and employment 
measures.  In the mid to long term, issues such as the 
review of the financial supervision system, reduction of 
the fiscal deficit, that will grow due to the domestic 
economic recovery measures, and the suppression of 
excessive consumption, must be tackled and the global 
imbalance problem must be dealt with.  It may be said 
that the economic growth model of the U.S. is coming to a 
turning point. 
 
The Japanese economy's recession is also expected to 
continue for the time being.  There are concerns that 
developments such as the rapid reduction in manufacturing 
industry output could lead to large scale job losses, and 
there are risks that the economy may stagnate further 
from the effects of the global recession and the massive 
fluctuations in the stock and foreign exchange markets. 
Institutional harmonization has progressed significantly 
and consumer benefits have grown through the bi- 
directional Japan-U.S. Regulatory Reform and Competition 
Policy Initiative etc.  However, foreign direct 
investment in Japan remains small.  Japan's economic 
partnership agreement (EPA) policy, which Japan has been 
promoting mainly in Asia, is becoming limited in new 
initiatives.  Despite this, structural reform in the 
agricultural sector has not seen such progress that would 
otherwise make further liberalization possible, and 
options available for Japan's WTO/EPA policy remain 
limited.  While Australia and New Zealand as well as 
South Korea and China actively advance their FTAs, Japan 
would be left behind if nothing is done.  Japan is also 
on the defensive in the WTO Doha round talks in the 
agricultural sector, and has not been able to take the 
leadership to advance the negotiations. 
 
The global economy is in a state of difficulties too. 
Several small/medium-sized countries have asked for 
emergency loans from the IMF, and negative effects are 
appearing in the real economy.  Although countries that 
are highly dependent upon foreign demand need to take on 
a more autonomous domestic demand-driven economic growth 
model, the promotion of free trade/denial of 
protectionism must be upheld at the same time. 
Furthermore, the world needs to address new global 
challenges, such as "climate change/energy security" that 
is vital for future economic growth, "development issues" 
including overcoming poverty/the income gap and spreading 
medical/health services including infectious disease 
prevention, and "food security", through collective 
actions.  Here, we need to focus on the fact that the 
constitution of "players" in the global economy has 
changed though the rise of the emerging economies such as 
China and India and the resource-rich countries in the 
Middle East and Russia.  The roles and responsibilities 
of these emerging economies within the global economy are 
becoming ever more important.  Additionally, with this 
 
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development, it is becoming necessary to review the state 
of international financial and economic institutions, 
including the IMF. 
 
¶2. Proposition 1: 5 pillars of the "New Japan-U.S. 
Economic Relationship" 
 
The points raised in 1 above are just some examples; 
there are other new challenges piled up before Japan and 
the U.S., which are allies as well as the two largest 
economies in the world.  By cooperating with the U.S. in 
tackling those challenges, Japan can overcome the current 
global financial crisis, re-boost its economy and 
strengthen its national power.  Cooperation between Japan 
and the U.S. will not only contribute to the national 
interest of Japan, but will also benefit the U.S. and the 
global economy.  Japan and the U.S. should cooperate and 
lead the world to construct the post-crisis global 
economic order.  Therefore, we propose the following 5 
pillars in order to construct a new Japan-U.S. economic 
framework. 
 
(1) Creating a new post-financial crisis economic growth 
model 
 
Overcoming the current global financial/economic crisis 
will not mean getting to settle the economy back to how 
it was before the crisis.  The economy in the post-crisis 
era should be harnessing new forms of industry.  The U.S. 
economy is now coming to a turning point, and as a matter 
of fact, the Japanese economy is too.  Once the current 
crisis is overcome, the nation that can not only prevent 
repeating the same mistake in the future, but also 
establish a more advanced economic growth model will lead 
the next era.  In this regard, it is worthy to note that 
President Obama has been emphasizing action in the 
energy/environment sectors within the context of his 
economic recovery measures.  Both Japan and the U.S. are 
allies with much wisdom and technology in broad/various 
sectors including energy/environment.  Japan and the U.S. 
must overcome the current crisis, and lead the coming 
global economy by creating a new economic growth model, 
for example, which will organically link sectors of 
"energy", "the environment" and "economy." 
 
(2) Cooperation in tackling global challenges 
 
It is indispensable to prepare an economic 
environment/order in which the entire world may achieve 
sustainable growth.  Each country must work together as 
one in order to face the challenge of various global 
issues such as climate change/energy, development, 
including poverty/healthcare policies, and food security. 
Furthermore, regarding economic rules, under the current 
economical/financial crisis, each nation should work to 
maintain and strengthen its economic system based on 
universal principles, such as building an adequate 
financial supervision system, promoting free trade/denial 
of protectionism, and protecting intellectual property 
rights.  In fields such as climate change/energy sectors 
where Japan has advantages in the face of technology and 
experience, the effects of cooperating with the U.S. 
increases all the more.  Concerning the promotion of free 
trade/denial of protectionism, Japan and the U.S. should 
collaborate and demonstrate leadership toward an early 
conclusion of the stagnated WTO Doha Round talks. 
 
(3) Collaboration in the approach toward emerging 
economies 
 
How shall we get the emerging economies, including China 
and India, involved responsibly in the global economic 
system?  This is an issue that cannot be avoided. 
Emerging economies are the negotiating partners in the 
 
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field of global economy, as well as the rosy future 
market for Japan and the U.S.  Therefore, Japan and the 
U.S. have challenges in common to face, such as 
protection of intellectual property rights, building 
business environment for investment, rules in the 
financial system, competition policy and foreign aid 
policy.  Japan and the U.S. already have their respective 
experiences in continuing dialogue with emerging 
economies in the context of encouraging them to take up a 
more constructive role in the global economy.  Japan and 
the U.S. should consider adjusting policies more closely 
by sharing their experiences and their future directions. 
Moreover, close cooperation between Japan and the U.S. is 
also essential in renovating international institutions 
for these countries to play a more important and 
responsible role. 
 
(4) Sufficient Commitment of Japan and the U.S. in the 
Asia- Pacific Region 
 
Asia-Pacific Region remains the "Growth Center of the 
Global Economy."  The economic growth in this region is 
vital for the economic growth of the world as well as 
Japan and the U.S.  Looking at this region as a "face", 
Japan and the U.S., allies and the world's two largest 
economies, must be fully involved and construct an 
economic architecture based on high-standard economic 
rule, including trade, investment and service.  One of 
the means for this is to build broad economic 
partnerships.  Presently, concepts such as ASEAN+3 
(Japan, China and Korea), ASEAN+6 (Japan, China, Korea, 
Australia, New Zealand and India) and FTAAP (Free Trade 
Area of the Asia-Pacific) are in the process of being 
studied and discussed.  TPP (Trans Pacific Partnership) 
is in the stage of negotiation with the U.S. among its 
participants.  The U.S. intends to increase participating 
countries in the TPP for the purpose of shifting the TPP 
to the realization of the FTAAP in the future. 
Therefore, Japan must fulfill a leading role in the 
approach to broaden economic partnership among the Asia- 
Pacific Region. 
 
In this regard, process in the negotiation of APEC maybe 
useful.  The chair of the APEC will be Singapore in 2009, 
Japan in 2010, and the U.S. in 2011.  The year 2010, the 
host year for Japan, will be the milestone for the 
developed countries to achieve the Bogor Declaration, and 
since Japan and the U.S. will chair sequentially, it will 
be a perfect opportunity for the two to work together and 
to discuss on the economic architecture in the Asia- 
Pacific region.  Both Japan and the U.S. must contribute 
to the reevaluation of APEC by strategically planning the 
next three year-process in-depth. 
 
Among Japan-U.S. relations, negotiation on Japan-U.S. 
EPA, which has been suggested from both of the economic 
communities, must move into preparation promptly. 
Realization of Japan-U.S. EPA will not only 
broaden/deepen the economic relationship between two 
countries, but also will enforce broader relationship 
between the two, and furthermore, will even benefit to 
stabilize and develop the growth in the Asia-Pacific 
region.  For this purpose, it is necessary to clean away 
the impediments for commencing negotiations, preferably 
soon. 
 
(5) Continuation of Japan-U.S. "Economic Growth through 
Reform" 
 
Japan-U.S. economy will not revitalize without "Economic 
Growth through Reform."  The U.S. economy is at a turning 
point, and issues such as overhauling the financial 
supervision system in the U.S. are matters of urgent 
need.  At the same time, Japan also has many fields where 
 
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reforms are still necessary.  For example, the high 
corporate tax rate and the lack of human resources 
required by foreign firms entering the Japanese market 
are common issues raised as reasons why foreign direct 
investment in Japan does not readily increase.  Tax and 
education reform is necessary in order to solve this 
problem.  As for structural reforms on agriculture, 
although structural reform to enhance the robustness 
increases the efficiency of Japanese agriculture, through 
measures such as reduction of cost by maximizing scales, 
are necessary for further liberalization of agricultural 
imports, however, such preparation is not ready. 
Therefore, options in trade policy are limited, and Japan 
is forced on the defensive at the WTO Doha Round talks 
and the Japan-Australia EPA negotiations are not going 
smoothly.  Under such circumstances, Japan's 
participation in a Japan-U.S. EPA or an even larger 
economic partnership is unrealistic, but is that 
acceptable?  Without promoting free trade, there will be 
no future for Japan.  Structural reforms in agriculture 
are also necessary to ensure food security of Japan.  At 
the same time, free trade policy supports food security 
for the country by ensuring stable import of food. 
Therefore, agricultural structural reform is 
indispensable to advance trade policy.  There is no way 
forward for Japan's trade policy unless the current 
situation, where decisions are made only after when Japan 
is isolated.  There is no doubt that consumers of the two 
countries have benefited from the interactive Japan-U.S. 
dialogue on regulatory reform.  Such reform should be 
continued through political leadership and the deepening 
of public understanding. 
 
Furthermore, for example, it is worth considering sharing 
the lessons of successes and failures in the relationship 
between Japan-U.S., by including other Asian nations in a 
similar framework as that between Japan and the U.S. for 
a dialogue on regulatory reforms, towards liberalizing 
the world economy. 
 
¶3. Proposition 2: The new framework for Japan-U.S. 
economic dialogue 
 
Japan and the U.S. established economic dialogues such as 
"MOSS Consultation" (market-oriented, sector selective: 
Reagan administration), "Structural Impediments 
Initiative" (SII: George H.W. Bush administration) and 
"Japan-U.S. Economic Partnership for Growth" (George W. 
Bush administration), and have led to reduction of 
"friction" and brought economic growth to both countries. 
In particular, the most recent multilayered framework of 
dialogue such as the "Subcabinet Economic Dialogue", 
"Regulatory Reform and Competition Policy Initiative", 
"Trade Forum", "Financial Dialogue" and the "Investment 
Initiative" under the "Japan-U.S. Economic Partnership 
for Growth" has contributed to deepen Japan-U.S. economic 
relationship from "friction" to "cooperation."  Being 
aware of these processes, it is necessary for Japan to 
build a framework of dialogue for Japan and the U.S. to 
cooperatively deal with new challenges together with the 
Obama administration. 
 
We propose a review of the existing framework by taking 
into consideration the 5 pillars mentioned in 2 above and 
the prompt establishment of a "New Framework of Japan- 
U.S. Economic Dialogue" with the Obama administration 
including the elements shown below. 
 
(1) Japan-U.S. Global Issue Dialogue (tentative name) 
 
For Japan, which has advantages in technology and 
experience, to coordinate with the U.S., which now stands 
at an economic turning point, and search for cooperation 
items on global issues, such as climate change/energy and 
 
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development, this will be both beneficial for Japan and 
the U.S., and will even be so for the global economy as a 
whole.  For example, the search for new items of so 
called "Green (environment-related)" Japan-U.S. 
cooperation, such as new energy development (renewable 
energy) and development of next-generation transportation 
technology, and the consideration of how to combine these 
items into the economic/market system in both countries, 
will create a new economic growth model, and will enable 
us to lead the global economy. 
 
Regarding policies for preventing global warming, it is 
important to construct an effective scheme, not to 
mention reduction on emissions, which is consistent with 
the environment and economy, and also will lead to the 
development of technology.  Japan has many experiences on 
policymaking concerning global warming, for example, the 
"Top Runner" approach under the Law Concerning the 
Rational Use of Energy, the public announcement system 
under the Law Concerning the Promotion of Measures to 
Cope with Global Warming, and the promotion of the 
Voluntary Action Plan on Environment, in order to carry 
out the obligation under the Kyoto Protocol.  Ambitious 
approaches are also about to start in the U.S. by the 
Obama administration.  It is essential for both Japan and 
the U.S. to exchange opinions and information on measures 
for CO2 emissions-reduction by considering their domestic 
experiences and their experiences in the third country. 
Exchanges of opinion and information on the so-called 
"emission trading system" based on such approaches as the 
trial implementation in Japan, and the experience of 
state levels in the U.S, will benefit both nations to 
consider the actual introduction of the system. 
In addition, in order to eradicate poverty leading to the 
global income gaps, Japan and the U.S. can find ways to 
cooperate in the areas of comparative superiority of each 
country, such as food assistance in Africa, capacity 
building and development of new medical technology such 
as measures to fight infectious disease.  Moreover, Japan 
and the U.S. can consider and propose how the development 
assistance should be, including the assistance toward the 
third country.  These two actions will enable Japan and 
the U.S. to lead the global economy. 
 
Therefore, we propose the establishment of the "Japan- 
U.S. Global Issue Dialogue" (tentative title), a dialogue 
that focuses on global issues in the broader sense of 
economic issues. 
 
(2) Strengthening inter-ministerial coordination and 
moving with leadership level direction through the Japan- 
U.S. Strategic Economic Dialogue (tentative title) 
 
Within a multilayered dialogue framework, the roles of 
the "forum for working on economic strategy" and the 
"forum for solving individual issues" should be 
distinguished, and a structure must be established 
whereby these fora deepen with the involvement and 
direction of the respective leaders of Japan and the U.S. 
 
The economic relationship between Japan and the U.S. has 
elevated from the age of "friction", and today each 
individual issue does not require discussion at the 
leadership/cabinet level for decision-making to take 
place.  However, political leadership is vital for the 
strategy/direction of the economic relationship between 
Japan and the U.S. which leads the global economy. 
It is necessary to work on the existing dialogues for 
each sector and renew the scheme of the new framework, 
keeping in mind the priority issues that need to be 
addressed under the current financial/economic situation. 
For that purpose, firstly, the "Japan-U.S. Strategic 
Economic Dialogue" (tentative title) should be 
established for strategic discussions.  Thereupon, 
 
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bearing in mind that the various issues, including the "5 
pillars" as mentioned in Proposition 1, are interrelated, 
the framework should be designed so that each dialogue 
including 1 above should overcome the boundaries of the 
related ministries at the working level and coordinate 
organically with the "Japan-U.S. Strategic Economic 
Dialogue."  Furthermore, the framework should be designed 
so that these activities obtain the involvement and 
direction of the respective leaders/related ministers of 
Japan and the U.S. 
 
Additionally, the framework should fully coordinate with 
the Council on Fiscal and Economic Policy and the Japan- 
U.S. Business Conference etc., so that the above Japan- 
U.S. initiative moves strongly together with Japanese 
domestic economic/fiscal policy and private sector 
activities. 
 
End Text 
 
ZUMWALT