Japanese, US officials talk business

C. Michael Armstrong, CEO of AT&T, delivers a speech on the political and economic outlook in the US during the plenary session of the annual Japan-US Business Conference in Tokyo, yesterday. PHOTO: AP

Top Japanese and US finance officials yesterday discussed issues affecting the world's two largest economies ahead of key policy announcements by Japan later in the week.

Investors been waiting to hear the outcome of the talks between US Undersecretary John Taylor and Japanese vice finance minister for international affairs Haruhiko Kuroda but officials offered no new leads.

"The two sides discussed macro-economy and fiscal policy matters in the morning, followed by policies related to the financial sector in the afternoon," said a finance ministry official.

"We also discussed briefly about aid to Afghanistan and [cutting] funds to terrorists," he told reporters after the Japan-US financial dialogue.

The Japanese side told their US counterparts about a special taskforce established by newly-appointed Financial Services Minister Heizo Takenaka to consider accelerated disposals of non-performing loans at Japanese banks.

"However we didn't reveal what has been discussed in detail," said the official, adding the US side asked no questions.

An awaited interim report into the team's findings is due to be released as early as tomorrow.

"The US side expressed strong support for Japan's carrying out its current comprehensive policy agenda towards revitalization of the Japanese economy including measures to strengthen Japan's financial and corporate sector and to overcome deflation," a joint statement said.

Tokyo preparing to unveil details -- due out by the end of the month -- of its latest reform drive to stimulate the recession-weary economy by halting deflation, shoring up the stockmarket and erasing a mountain of bad loans from Japane banks.

"Both side reiterated their shared view that the world's two largest economies have a special responsibility to bring about sustained growth at their full potential over the medium to long term," the statement said.