1. Cooperation towards peace and stability
                    
                  Japan and the   EU share fundamental values and principles of freedom, democracy, the rule of   law, human rights and market economy. 
                  
                  The European people decided to put   war behind themselves and construct a society where the concept of military   conflict was no longer imaginable. Japan itself renounced resorting to force as   a solution of international disputes since 1945. 
                  
                  This determination to   renounce the use of force is strongly rooted in the Japanese people. With a view   to ensuring peace and stability, Japan works closely with the European Union in   all parts of the world.
                  
                  2. West Balkans, Iran and Central Asia
                  
                  In   more concrete terms, then, how do Japan and the EU cooperate? Here are a few   examples.
                  
                  (1) West Balkans
                  
                  The European Union is an actor par   excellence in West Balkan affairs. It makes great efforts to maintain peace, and   foster and re-establish economic and social stability there. Japan contributes   to such European efforts by organising and supporting meetings in close   collaboration with the EU and by providing technical and financial assistance of   more than 1.4 billion dollars to the region thus far. In fact, Japan hosted with   Ireland, then holding EU Presidency, and the European Commission, “the   Ministerial Conference on Peace Consolidation and Economic Development of the   Western Balkans” in Tokyo in 2004. 
                  
                  (2) Iran
                  
                  Recognising the   political and economic importance of Iran, Japan and the EU maintain close   consultation with one another to explore solutions to the critical nuclear   issue, and sustain world stability in this context. 
                  
                  (3) Central   Asia
                  
                  Central Asia is another region of mutual interest.
                  
                  On the 6th   of June this year, the 2nd Foreign Ministers’ meeting under the “Central Asia   plus Japan” initiative was held in Tokyo. It was already two years ago that the   first ministerial meeting among Japan and the Central Asia Republics took place   in Kazakhstan. This year’s meeting adopted an Action Plan, which includes the   strengthening of intra-regional cooperation, for example, in measures against   terrorism and narcotics. It is our understanding that the EU is also very keen   to foster relations with the Central Asia countries in the future.
                  
                  As   strategic partners sharing common values, interests and concerns, Japan looks   forward to working closely with the EU in this part of the world through the   strategic dialogue, which will take place in the very near future. 
                  
                  3.   East Asia
                  
                  The fourth example of our cooperation is in East Asia, where my   country belongs. All eyes are focused on the economic dynamism of Asian   countries such as China, India as well as most of the ASEAN countries. The   region, however, is not without some security and political problems and   challenges. The Cold War may have ended with the fall of the Berlin Wall in   1989, but remnants of that period persist at the other end of the Eurasian   Continent, most notably on the Korean Peninsula. Equally worrisome are newer   threats such as terrorism, rising nationalism, and the growing development gap   within and among countries in the region. There is a risk that these negative   factors could overshadow the region’s enormous potential, or could even lead to   instability in the region.
                  
                  I will demonstrate two major issues in East   Asia, followed by Japan-EU cooperation in the region. 
                  
                  (1) North   Korea
                  
                  The Democratic People’s Republic of Korea, DPRK, or North Korea, is   still under the typical, Cold War era, dictatorial communist regime, and is one   of the most urgent and delicate concerns in East Asia. 
                  
                  (i) Nuclear   issue
                  
                  There are, among other things, two sub-issues. One is the   development of nuclear weapons and missiles capable of carrying them. North   Korea’s nuclear test of last week (on October 9th), following its missile   launches, which occurred between July 4th and 5th 2006, reminded us acutely of a   threat to the security of Japan and other countries. 
                  
                  (Missiles   launching)
                  
                  Against the missile launches, the UN Security Council   unanimously adopted Resolution 1695 on July 15th. It condemned the launch of   ballistic missiles by North Korea, sending a strong message by the international   community. The resolution demanded the ceasing of DPRK’s missile-related   programme, the re-establishment of a moratorium on missile launching, a swift   return to the Six-Party Talks without precondition, and efforts toward early   implementation of the Joint Statement of the Six-Party Talks of September 2005.   Japan played an active and important role as a member of the Security Council in   the process from the drafting to the adoption of the resolution. 
                  
                  In this   context, I emphasise the importance of the role being played by the EU, which   confirmed its support for Japan’s position on this matter. In Malaysia on July   27th, High Representative Solana expressed at a meeting with Mr. Aso, the   Japanese Minister for Foreign Affairs, that the EU thoroughly endorsed Japan’s   position in regards to the North Korean matter and that the EU shared Japan’s   concerns on the missiles issue.
                  
                  (Nuclear testing)
                  
                  Despite   repeated warnings by Japan, the EU and the international community, North Korea,   regrettably, announced that it had conducted a nuclear test on October 9th. On   the same day over the telephone, recognising that the nuclear test by North   Korea constitutes a grave threat to the security not only of the region but of   the world, including threat of the proliferation of nuclear weapons, Foreign   Minister Aso and High Representative Solana confirmed that Japan and the EU   would continue to collaborate closely on this matter. 
                  
                  I would also like   to mention that High Representative Solana, before the plenary of the European   Parliament on October 11th, referred to Prime Minister Abe’s statement that   Japan would not respond by developing nuclear weapons. He stated that this   “shows great responsibility on the part of the Japanese government, which we   should all commend.”
                  
                  North Korea’s nuclear test runs counter to the   Japan-DPRK Pyongyang Declaration of 2002, the agreement of the Six-Party Talks   on North Korea of September 2005, as well as the UN Security Council Resolution   1695 that I just mentioned. On October 14th, the UN Security Council, chaired by   Japan, unanimously adopted Resolution 1718, which enumerates various sanctions,   and contains measures to be taken by the members of the UN. Japan intends to   make its utmost efforts for the steady implementation of this Resolution, in   cooperation with the international community. 
                  
                  (ii) Abductees and Human   Rights issue
                  
                  The second sub-issue is the unresolved problem of Japanese   citizens abducted by North Korea.
                  
                  From 1977 to 1983, agents of the North   Korean government kidnapped an unknown number of Japanese citizens in Japan and   abroad. In September 2002, Kim Jong Il, the leader of North Korea, for the first   time and after years of denial, admitted directly to Prime Minister Koizumi that   the North Korean authorities had kidnapped Japanese citizens. He apologised and   agreed never to abduct foreign nationals again.
                  To date, of the sixteen   identified abductees, only five Japanese have returned home since October 2002.   None of the other victims have returned to Japan, and there has been no   persuasive explanation from the North Korean authorities about the safety of the   remaining 11 abductees. 
                  
                  The Government of Japan repeatedly urges North   Korea immediately to allow the survivors to return home and clarify the true   facts. The Thai government is also raising the issue on the abduction of its   nationals. Some Europeans were also said to be the victims. 
                  
                  It goes   without saying that abduction is clearly a violation of fundamental human   rights.
                  
                  Through diplomatic efforts by the EU, Japan and other countries,   in December 2005, a resolution on the "Situation of human rights in the   Democratic People's Republic of Korea" was adopted by a plenary session of the   UN General Assembly for the first time. This resolution expressed deep concern   regarding the human rights situation in North Korea, including the issue of   abduction of foreign nationals. It called on North Korea to cooperate with the   UN to improve its human rights situation.
                  
                  I believe that the seriousness   of abduction and human rights issue of North Korea has been shared by the   international society as a result of the close cooperation between Japan and the   EU.
                  
                  (2) China
                  
                  Now, I would like to talk about another significant   issue, China. 
                  
                  China's recent economic growth has been the marvel of the   world. The Chinese economy now ranks fourth in the world after the US, Japan and   Germany. Indeed it is larger than four of the G7 economies.
                  
                  The Chinese   economic dynamism provides opportunities, not only for Japan and the EU, but   also for other countries in the world. Certainly, China faces social challenges   such as growth gaps between rich and poor, between agriculture and industry, and   among different regions, or problems relating to the environment, energy and   water. However, it is expected that appropriate measures will sustain China’s   growth. 
                  
                  In the area of international politics, as you can judge from the   Six-Party Talks, for example, China endeavours to help resolve issues that could   impact negatively on itself and the broader region. Japan welcomes this sort of   constructive Chinese engagement in the region. 
                  
                  (i) China’s lack of   transparency
                  
                  Yet, one cannot overlook China's growing defence budget.   There has been a double-digit growth in China's defence spending for the past 18   successive years without its transparency.
                  
                  Examining Chinese defence   spending in 2005, the National People's Congress last year announced the figure   to be 244.7 billion Yuan, approximately 29.5 billion US dollars, a 12.6 percent   increase over 2004. The Chinese national defence expenditures announced for 2005   are roughly double those declared in 2000, and triple those from 1997. These   figures suggest a swift-paced expansion of military expenditure.
                  
                  The   problem is that transparency is lacking as to how the expanded expenditure is   augmenting what capabilities to achieve what military objectives. 
                  
                  Also,   in addition to the above published figures, it is said that there is still other   military-related spending. This increases the degree of non-transparency. 
                  
                  In order to build confidence among its partners, and to increase the   predictability of the East Asian regional environment, it is expected that the   Chinese government will implement policies, which are more open and accountable   to its people as well as to the outside world. In other words, it is expected   that China will become a more responsible and constructive global partner in the   region and international community. This will be a key to achieving the ultimate   goal of a “stable and prosperous East Asia”.
                  
                  This view was also confirmed   by the leaders of Japan and the EU at the Japan-EU Summit in April this   year.
                  
                  Before moving on to how Japan and the EU are cooperating, let me   briefly touch upon the most recent development in Japan-China relations since it   has attracted much attention also here in Europe.
                  
                  As you may have heard   in the news, our new Prime Minister, Shinzo Abe, has just assumed the position   on September 29th, and has chosen China as the first country to visit as prime   minister.
                  
                  In China, he met President Hu Jintao, Premier Wen Jiabao and   Chairman of the Standing Committee of the National People's Congress Wu Bangguo.   In the meetings, the leaders agreed to set in vigorous motion the two wheels of   both politics and the economy to take Japan-China relations to a higher level. 
                  
                  I am certain that already existing solid relations in a wide range of   areas between Japan and China will be further promoted by the renewed dialogue   at the highest political level.
                  
                  (3) Japan-EU Cooperation in East   Asia
                  
                  On the European side, the EU plays an increasingly important and   responsible role for the peace and stability, as well as for the prosperity,   within the international community. The political and economic evolution in East   Asia is thus a subject of particular interest to the EU. 
                  
                  A strategic   paper by the European Commission relating to Asia for 2005-2006 confirms that   the basic strategy that guides all EC actions in Asia is set down in the 2001   Commission Communication entitled ‘Europe and Asia: A Strategic Framework for   Enhanced Partnerships’. The General Affairs Council then endorsed the priorities   proposed in the strategy. One of the 6 objectives identified by the strategy is   to “contribute to peace and security in the region and globally, through a   broadening of our engagement with the region.”
                  
                  Examples of such European   engagement, to mention a few, are in Ache, Sri Lanka, and the Korean Peninsula. 
                  
                  At the same time, it cannot be denied that, in Europe, there was, until   recently, a strong tendency to regard East Asia mainly as an economic market.   There was not enough understanding as to the security situation in the   region.
                  
                  Under such circumstances, at the 2005 Japan-EU Summit, the   leaders agreed that strategic dialogue between Japan and the EU on security in   East Asia should be enhanced. It is worth noting that it coincided with the   period when the EU’s possible lifting of its arms embargo against China was   becoming a major issue in Europe. Japan has been conveying the message to the EU   that in view of the security situation in Asia, the lifting of embargo should   not take place. 
                  
                  Four months later, in September 2005, the first Japan-EU   Dialogue on the East Asian Security Environment was held in Brussels. 
                  
                  Through the dialogues, the EU has come to better understand the security   situation in East Asia. 
                  
                  As I mentioned earlier, at this year’s Japan-EU   Summit, the leaders again endorsed enhancing and continuing the dialogue. The   second Dialogue was just convened in June 2006 to the satisfaction of both   sides. It may not be a surprise to you that Japan still considers the lifting of   the arms embargo against China inappropriate in view of the situation in the   region, which I have just explained.