Fed: Japan must face up to structural issues Costello

AAP General News (Australia)
04-29-2001
Fed: Japan must face up to structural issues Costello

CANBERRA, April 29 AAP - The new Japanese government must face up to some fundamental
structural issues to help lift it out of the doldrums and aid Asian economies, Treasurer
Peter Costello told a world audience.

Mr Costello said he was confident Japan could turn itself around in a positive financial
move for the region.

"I think the whole world will welcome moves that have been put forward to reform the
Japanese financial system," Mr Costello told CNN in an interview from Washington.

The Japanese government seemed intent on forcing through some restructuring to resuscitate
its economy, he said.

"And to the extent that they can be successful, that will be good for Japan, that will
be good for the region as well," Mr Costello said.

Prime Minister John Howard spoke by telephone to Japanese Prime Minister Junichiro
Koizumi on Friday for the first time since Mr Koizumi's election.

The two discussed economic reform in Japan and the importance of that country's economic
growth to the region, and agreed to place top priority on the relationship between both
countries.

Mr Costello yesterday told CNN China had been a stable influence in the region throughout
the financial crisis of 1997-98 and Australia also welcomed moves by China to open up
its market and economies.

"Positive move for economic development in China will also be very much welcome," Mr
Costello said.

In an assessment of the region, he said Korea was one of the larger economies, while
Thailand and Indonesia still needed restructuring.

But he pinned hopes on a Japanese financial turnaround to boost the region.

"Turning Japan around would be a very positive move for the Asian region," Mr Costello said.

"We just hope that the new government can come to grips with some of the really fundamental
structural issues that they are going to have to face up to."

AAP lm/cdh/mg/bwl

KEYWORD: JAPAN COSTELLO

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