Kan vows to hone Japan's diplomatic skills amid row with China+

TOKYO, Oct. 1 Kyodo - Prime Minister Naoto Kan pledged Friday to hone Japan's diplomatic skills in the rapidly changing global environment, while expressing concerns over China's military buildup and intensifying maritime activities.

''Uncertainty and instability that exist in areas around our country will not
allow optimism,'' Kan said in his policy speech on the opening day of an
extraordinary Diet session that will run through Dec. 3, amid a simmering
territorial row with China.
Kan said Japan needs to engage in proactive diplomacy as today's international
community finds itself at ''a watershed in history'' where the security and
economic situation has been transformed drastically as a result of the rise of
emerging countries.
He said amicable relations between Japan and China are vital not only
bilaterally but also for the peace and stability of the Asia-Pacific region and
the entire world.
''Even if a variety of problems occur between Japan and China, I believe it
would be important to address them calmly as neighbors,'' Kan said, when the
two remain locked in their worst diplomatic spat for years, triggered by Sept.
7 collisions between a Chinese trawler and Japanese patrol boats near disputed
islets in the East China Sea.
But at the same time, he reiterated that Japan is concerned about the lack of
transparency in China's national defense policy and intensifying maritime
activities in an area stretching from the Indian Ocean to the East China Sea.
He said the Senkaku islets are part of Japan ''historically and under
international law'' and that the collision incident, which led to the detention
of the fishing boat's captain for about two weeks, was handled appropriately in
line with Japanese law.
''As a responsible member of the international community, I expect China's
appropriate role, and words and deeds,'' said Kan, who faces criticism at home
for freeing the captain -- who was suspected of deliberately causing the
incident -- last Saturday amid strong pressure from Beijing.
Kan, who has been in office for four months, said it is time for his government
to put its key policies into action to overcome a host of significant
challenges that he said Japan has been ''procrastinating about.''
While avoiding criticism of past administrations, the 63-year-old said both
ruling and opposition party lawmakers must work hand in hand in rebuilding
Japan as a country whose people can hold hope for their future.
In addition to strengthening diplomacy, Kan said other key items on his
government's policy agenda include achieving economic growth, rebuilding public
finances and reforming the social security system in an integrated manner, and
giving more power to local governments.
During the 64-day special parliamentary session, he said, the biggest issue is
winning approval for the extra budget for fiscal 2010 to finance additional
economic measures.
The ruling coalition is trying to submit the budget to the Diet in late October
and the government agreed Friday with opposition parties to exchange their
views on how to draft it next Monday.
The measures will have a strong focus on job creation, Kan said, adding the
right way for an economic recovery would not be to approach it from the
supply-side.
He said the economy will continue to be stuck in low gear unless there are new
jobs, pointing out that Japan cannot avoid deflation as long as companies cut
costs to compete in a domestic market that has long been paralyzed by lack of
demand.
To prevent Japan's social welfare programs from collapsing, he said it is
inevitable for tax reforms to be undertaken, ''including the consumption tax.''
''My view is that it is preferable to have a reliable social system, even if it
means shouldering a slightly heavier burden,'' he said.
The premier repeatedly called for cross-party cooperation, partly because of
the divided Diet where the opposition camp now controls the upper house.
The Diet session comes after the Democratic Party of Japan, which swept to
power one year ago, suffered a stinging defeat in the upper house election in
July, but Kan managed to stay on as head of the ruling party, thus the
country's leader, after winning its presidential election last month.
It is Kan's first real experience of Diet deliberations since he became prime
minister on June 8.
At the end of the speech, he said the session will be a ''touchstone'' for
judging whether parliamentarians can ''fulfill their responsibilities to tackle
problems now facing Japan and not to leave them to future generations.''
''I want this to be a Diet capable of reaching conclusions,'' he said. ''Those
of us called to this place should not be separated by where we sit.''
Kan promised that he will be open to opinions from ''all those who are willing
to think seriously about the future of the country.''
But it remains to be seen if he can secure enough cooperation from the
opposition bloc to avoid policy deadlock, while there was already a chorus of
criticism Friday from opposition party leaders against his policy speech.
Liberal Democratic Party leader Sadakazu Tanigaki told reporters Kan's speech
was too abstract and did not provide thoughts on how to revitalize Japan.
''It wasn't worth hearing at all,'' said Tanigaki, who heads the biggest
opposition party.
==Kyodo