Geithner praises Hatoyama tack

The Japan Times: Thursday, Nov. 12, 2009

Kyodo News

Prime Minister Yukio Hatoyama's new economic policies focused on boosting domestic demand are "very encouraging" as they are perfectly in line with major countries' ongoing efforts to aim for more balanced and sustainable growth, visiting U.S. Treasury Secretary Timothy Geithner said Wednesday.

"I think the broad direction that the prime minister's laid out is very encouraging," Geithner said in a group interview with reporters at the U.S. Embassy in Tokyo, adding there are "early signs of a stronger domestic demand-led economy."

Japan and the United States, along with other Group of 20 major economies, have agreed that countries with huge trade surpluses need to be less reliant on U.S. consumption and those spending too much need to save more for their future growth to avoid another economic crisis.

Geithner also said the future of Japan Post Holdings Co.'s privatization is an issue for Tokyo, but Washington cares about whether "Japan's markets are more open in the future."

Geithner said he did not raise issues related to the privatization during his Tuesday evening meeting with Finance Minister Hirohisa Fujii.

He repeated that the United States seeks a strong dollar, at a time when the dollar is weakening against other major currencies.

"I believe deeply that it's very important . . . for the economic health of the United States that we maintain a strong dollar," Geithner said, a day after Fujii voiced support for Washington's long-held stance on its own currency during their meeting.

Geithner said he believes Washington and Tokyo "share an interest in creating a more stable international financial system."

"Because of the important role that the dollar plays in the international financial system, we bear a special responsibility for trying to make sure that we are implementing policies in the United States that will sustain confidence" for people around the world, he said.

Japan-U.S. ties

Prime Minister Yukio Hatoyama stressed the importance of a close relationship between Japanese and U.S. leaders Wednesday in his meeting with U.S. Treasury Secretary Timothy Geithner ahead of his Friday talks in Tokyo with U.S. President Barack Obama.

A close bond between Japanese and U.S. leaders is important for world peace and financial stability, Hatoyama told Geithner during their meeting at the Prime Minister's Official Residence, government officials said.

Geithner replied that Obama is willing to strengthen economic ties between the two countries, they said.

Earlier in the day, Geithner, who is in Tokyo before Obama's visit Friday, also met with Deputy Prime Minister Naoto Kan, who later said he received an assurance the United States is not reinforcing its ties with China at the expense of Japan.

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