 Good morning everybody We are delighted to Welcome you all here in a normal hot Muggy Washington day, I mean I'm sorry, but it's air-conditioned here, and I'm the engineers are on site They'll keep us cool. So I look forward to spending the day with you. Thank you all for coming. My name is John Hammery I'm the president here at CSS and I'm delighted to welcome all of you for this conference and Very very happy that the Vice Foreign Minister could join us today He you know, you know, the old tradition is you had to get permission from the emperor to leave Tokyo You know and and I think that's still a custom that happens And so he had to get special permission from the government to be able to come and we're delighted that Kishi-san is with us today and thank you for being here. He is going to say some words of welcome to all of us He's a well-known figure to Americans who have expertise in Japan But he doesn't spend enough time in Washington himself So we're grateful that he's here today and is going to be sharing a few words with us special Thanks to Charles Rivkin who's going to be our keynote speaker And I've just my first opportunity to meet him and I can now tell understand why he has such a dynamic reputation in the State Department This is kind of a little bit of an artificial conference topic, you know looking to the past, you know this in 1964 1964 was in some sense a very pivotal year here in America, but my heavens what a Really was a kind of a remarkable coming out period in Japan. It was Japan became a member of the OECD a very Significant acknowledgment within only 20 years to have Japan become one of the leading club members of the developed nations Japan had introduced to the world stage the Shinkansen This was 50 years ago. Interesting. Now. I think if you were to take I think there are like 300 Shinkansen trains a day Been operating for 50 years If you take all of the time that a Shinkansen the entire fleet for 50 years has shown up late It was less than my train trip back from New York last week I mean I took me two hours to get to Washington two hours late I think the entire fleet for 50 years has not been an hour late All together so a remarkable story and it's still one of the leading technologies in the world and And it's 50 years ago it was you know, it was also 50 years ago that Japan hosted the Olympics and Japan is preparing to host again the Olympics and it's again one of these signal Statements that this remarkable country is able to pull together in such a wonderful way And it was a milestone at that time. And so we're looking back not to Not to dig out the nuances of history But to pull out the themes of the future and I think that's what today is going to be about this is about Japan now rediscovering itself the last several years have not been so good It's not because of the foundation in Japan has been flawed. It's not it still has a remarkable workforce a tremendous sense of cohesion in society Sense of shared purpose those of you that have visited Japan after Fukushima You know a country that was already the most energy efficient country in the world and was able to accommodate a contraction of Electricity production by 25 percent and life still proceeded normally is a remarkable. This is an absolutely remarkable country Its politics hasn't always been so supportive of this great country But we're seeing this change now and the energy that's coming forth out of the Abe administration Is really the foundation and the reason for this conference. So even though we're going to use the reference of The past which really to be a focus for our future and how we're thinking about this remarkable country and its role So we're delighted to have you here Matt. Do you do I say for the words of introduction? I think Well, I I don't think I would be a diminishment if I tried to prolong any longer your hearing from Senior Vice Foreign Minister Kishi son He is a familiar figure. He has been working with us for many years And we're delighted that someone of his reputation and standing was willing to come So would you with your applause? Please welcome and greet Vice Foreign Senior Vice Foreign Minister Kishi son Good morning, ladies and gentlemen Thank you. Dr. Hamre for your kind of interaction. I'm delighted to be here Before I start Let me express my deep condolences over the passing of Ambassador Howard Baker Ambassador Baker was the United States ambassador to Japan when we reached the 150th anniversary of Japan-U.S. Relationship to milestone He contributed profoundly to the enhancement of Japan-U.S. Alliance and the friendship and goodwill among the peoples of two countries. I renew my sincere respect for the achievement of Ambassador Baker and pray that he may rest in peace 50 years ago in 1964 Japan hit a large turning point. In that year Japan joined the OSVD. The first Shinkansen line opened and Tokyo hosted the Olympic Games. At the time I was only five years old But still I remember what happened on the day of the opening ceremony of the Olympic Games Everybody, every Japanese, 100 million people of Japanese All celebrated the Olympic Games. Of course my family did. My family went out to attend the opening ceremony Left me home alone So still I remember that But anyway after that the large growth in Japan's economy was palpable and that year 1964 Japan was still a poor country, but thanks to financing from the World Bank We were able to build advanced infrastructure such as the Tokaido Shinkansen and extensive highway system This board investment Created the grand work for Japan's jump and the economic growth Well, it is said that deflation caused the Japanese economy in to stagnate these past 15 years It is my belief that we Japanese statesmen should bring Japan back to full vitality In the same way that a stronger United States is benefited to Japanese Stronger Japan is beneficial to the US as well This was only the most important point my brother Prime Minister Abe and President Obama Discussed during their meeting shortly after the inauguration February last year With this understanding Prime Minister Abe began efforts to strengthen defense capabilities and vitalize Japan Bringing back Japanese Japan's energy and thus strengthening the Japan-US alliance In terms of the economy Prime Minister Abe forged a ban on mix He vowed that no vested interest will remain immune from my drill Sending a clear message On June 24th a new Japan growth strategy with concrete plans was released by the cabinet The Abe administration strongly believes that Reaching an agreement on TPP is the key link to the economic strategy This bold economic strategy presents a great opportunity for American cooperation as well in the midst of all these efforts We encourage we are encouraged by the fact that this Back to the future seminar on Japan is held in the United States Particularly at the famous and influential CSIS It is extremely significant that we are sharing our views today into Japan's past 50 years and Envisioning Japan's 50 years from now my mission for the coming 50 years is to help Japan grow stronger and Together with the United States help bring about the Help bring about a better world. I Believe that all of you who have gathered here today Share in this conviction I'm honored to have all of your support for the future. Thank you very much Thank you very much Vice Minister Kishi. We're honored that you came and joined us today And we were very pleased to have your comments which helped to frame this this conference And so I'm very grateful personally. My name is Matthew Goodman I hold the Simon chair here at CSIS and let me join John Hamery and welcoming you to CSIS on a very hot day apologize for that also Recognize our online viewers. We have a good following always online and we we give them a a warm welcome as well And you can follow us on Twitter at the at CSIS and at CSIS Simon chair so And let me also thank the Embassy of Japan and Central Japan Railway for making this this event possible today So I am going to save my own thoughts about Japan 1964 for the first panel which I will be moderating so I wouldn't want to just skip straight to introducing our first keynote speaker I have the honor of introducing Assistant Secretary Charles Rifkin who is Assistant Secretary of State for economic and business affairs You have the biographical information about Assistant Secretary Rivkin in your packet, so I won't Go through all of it here But what comes through to me is not only that he's had an impressive career both in business and in government But he sure knows how to land a dream job It's it's not enough that he worked in television for 20 years and ran the Jim Henson Company, which is you all know created the Muppets but he also served as ambassador to France and That's about as nice a job as you can land I think but a very important one What's not in his biography is that he was the first ambassador to France to jump out of an airplane Which he did to commemorate the the D-Day landings in 2012 and I think he also landed an F-18 if I'm not mistaken So that's great So he obviously brings a lot of energy to everything he does and we certainly hope that he's doing that at the State Department Which he joined about three or four months ago Running economic affairs, which is critically important And it's something if I can just quickly shamelessly advertise a project that we're doing in the Simon chair We're going to be issuing a report in a few weeks about economic state craft And about how the State Department can Can do an even better job at economic state craft And so we we look forward to giving that and sharing that with you as Secretary Rivkin, but with no further ado Let me introduce this is Secretary Rivkin Thank You Matt John I Appreciate the kind introduction it's true. I did jump out of an airplane It wasn't in the job description and and it's true I did land on a carrier in F-18 Super Hornet and those are both examples Sometimes of how it's it's better not to ask permission from Washington when you're abroad because I don't think they would have said yes to either of those Activities a little bit harder when you're at state no more jumping, but I really appreciate you Inviting me here today. It's an honor to be here and my greetings to all the participants who Are going to be part of today's events including senior vice minister Kishi Ambassador Sasai and other representatives of the Japanese government Japanese private sector including JR central chairman Kasai So as was mentioned by Matt The perspective that I bring to you today is informed by many experiences as the CEO of a of a media company in California where I Often found myself in Japan working to expand our business and our collaboration As a former US ambassador to France Where I understood and got to know the power of the US Embassy abroad and what an embassy can and can't do on behalf of the US government and currently as assistant secretary of state for economic and business affairs as The newly appointed assistant secretary. I haven't been in the job long I now have the chance to see opportunities more than just business to business I can see it on a much bigger scale of course and this and this means between our two countries and I'm looking forward to the forthcoming trip that I will be taking to To Japan and China and Singapore later this fall, but in advance of that I'm delighted to have the opportunity to talk about the enduring and important relationship between our two countries and The bright future that I am confident Japan is well positioned to realize today's theme is Is an excellent way as was said in a few minutes ago for all of us to take stock of Japan in the watershed year of 1964 and The Japan of today And to someone who has worked in the entertainment sector it speaks to me in a very specific and Particular way for me the key word is story Now in the creative industry, especially Hollywood that word carries a lot of weight It's what that industry does Whether we're talking about video games or television shows for children or action movies But story is not that industry's exclusive domain For one thing it's central. It's a central component in history and as I've come to realize in my in my new capacity It's central to our understanding of economics all too often I Believe we tend to think of economics in a dry and theoretical way the flow of money the cycles of boom and bust and so forth But on a more engaging and significant level It's about real people and the decisions they make based on their resources values beliefs opportunities So as we look back at Japan in the year 1964 I think of the story of the Japanese people's willingness to embrace the future in 1964 Japan had just re-emerged as a developed nation it adjoined the organization for economic cooperation and development or OECD It's latest inventions like the bullet train its electronic calculators and sophisticated timekeeping devices used at the Tokyo 1964 Olympics were wonders of the modern world And as host of these Olympics Japan for the first time broadcast the spectacle via satellite and in color The world recognized the story Japan had become an innovative leader the very epitome of modernity a whole nation had embraced the future at every level of society From its political leaders to its electronic inventors from its business leaders to its consumers Eager to buy those color TVs and get on those bullet trains 50 years later today Japan and the agent in the Asian region as well as the United States face a distinctly 21st century set of choices the challenge for all of us now is not industrial modernization but globalization in 1964 the key to growth was technology and capital today in 2014 Technology is still critical, but the key question is no longer how to pay for it, but how to use it The economies of the future stress innovation entrepreneurship and global openness to goods services and ideas Thinking in particular about Japan My hope is that it will consider a balance between preserving its underlying social fabric and embracing reforms that can move the economy to the next level and Allow it to once again act as the leading influence on the global stage I believe that Japan's influence will be determined primarily through private sector innovation But it is also important to consider the role Japan will play in global standards and rule structure Like the World Trade Organization APEC and the OECD as Japan embraces and steps forward as a global leader It will find a reliable and committed partner in the United States of America Japan and the United States help shape and build the Asian economy economic Miracle together, and I expect that we will continue to be an effective team in the future The most encouraging signs of all are visible in Japan itself Like in 1964 it's on the rise again and as part of its revitalization It's asking the difficult questions For example, Prime Minister Abe's third arrow Includes the recognition of three vibrant segments of the potential workforce Ready to bring a new vigor to the economy As everyone here knows these are women young people and foreign workers Prime Minister Abe is called for at least 30% representation for women in the private and public sectors in leadership positions And we fully applaud this ambitious benchmark Which would greatly contribute to Japan's economic growth And I'm pleased to hear that Japan following the Prime Minister's commitment at Unga last year Will host the world assembly on women in September to discuss women empowerment Many young people in Japan are eager to contribute to Japan's innovative economy But the seniority system in many companies Keeps them waiting in the wings By giving them opportunity Those companies will not only benefit from having more innovators, but greater profitability Foreign workers are also poised to contribute By joining the Japanese economy They would help to meet the needs of many businesses which may not be able to survive without them These are culturally and politically sensitive matters, I understand and not only in Japan But many friends of Japan believe that it's demographics and potential for looming labor shortages That require consideration of new and innovative responses A second component is the powerful and enduring partnership between our two countries Japan is a treaty ally and the cornerstone of our rebalance to Asia And for that reason we consider Japan's economic rejuvenation to be a critical U.S. national security priority We want to see a vibrant economically confident Japan as a trading partner As a source of technology as well as a leader in a positive role model for all of Asia That's why we're working hard to take this partnership to yet another level Through the successful completion of the Trans-Pacific Partnership or TPP Both Japan and the United States are deeply engaged in negotiations to bring the agreement to a successful conclusion Knowing that the benefits an ambitious agreement can bring to all parties involved are enormous TPP will open markets Create new opportunities support job creation and greatly support Japan's efforts to increase economic growth Just as the 1964 Olympics provided a catalyst for Japan's growth development It can provide a critical boost to the government's proposed reforms The Trans-Pacific Partnership will help build a new architecture of high standard rules for trade and investment Further deepen our engagement and create a level playing field not just between our two countries But all the other countries and TPP members They currently number 10 But more countries are expressing their interest in joining and as more of them agree to sign up to its ambitious commitments TPP will serve as a platform for broader regional economic integration That in turn would serve as an important model for other trade agreements in the region and throughout the world TPP was one of the main topics that President Obama Discussed with Prime Minister Abe in Tokyo in April and our TPP Negotiations continue to build on the progress that was made in those meetings in Japan Like all the TPP parties were committed to achieving a comprehensive high standard 21st century outcome because we recognize that this is how you generate the greatest economic benefits and do the most to achieve true regional economic integration By working together to create a high standard TPP the United States and Japan Can chart a future course that fosters prosperity security and welfare for the citizens of both nations and The Asia Pacific as a whole As Prime Minister Abe said and I quote I Believe that future historians will write that TPP Open the Asia Pacific Century Japan he said Must be at the center of the Asia Pacific Century in the year 2014 This is still a story in mid-process The obvious question is how is it going to turn out? We will continue to provide our part in the ultimate answer through our many joint efforts to build a set of rules for trade and investment that are open free transparent and fair Through the Bureau of Economic and Business Affairs and our partners in the State Department and across various U.S. Government agencies we support Japan's efforts to go to the next level Our commercial and business affairs office has worked with our embassy in Tokyo Japan's Ministry of Economy trade and industry and the private sector to explore ways to promote more innovation and entrepreneurship in Japan and with encouraging response On my upcoming visit to Japan I I'll be seeking ways to support these and other efforts and to do my part to help build on the two-way Foreign Direct Investment relationship the strong relationship that exists between our two countries We are also preparing for the next internet economy dialogue which reflects our evolving joint interests in a new economy being created and shaped by technology and connectivity and We strongly support a trusted travel and traveler partnership with Japan that would yield great benefits, especially for business travelers We are as many here know pursuing even greater opportunities in the aviation sector Which is a direct responsibility of mine in the Economic Bureau Including the further opening of Haneda Airport and that's another issue that I intend to discuss on my upcoming trip But ultimately the answer to that question. How does it turn out is going to come from stakeholders on both sides? Chief among them are Japan's government private sector and its 127 million Japanese consumers There are critical years ahead perhaps None more so than the year 2020 That is the year that Prime Minister Abe has set for his 30 percent representation goal for women and also for making Japan The world's most IT advanced nation But it is the year that our two countries are working as global partners to advanced a post 2020 international agreement on climate change and It's the year when Japan once again post the Olympic and Paralympic Games The 2020 Olympics in Japan will be a fascinating bookend to 1964 Giving Japan the opportunity to show the world that it did address the tough questions that it did take those decisive steps When I attended the OECD ministerial council meeting in May I Heard Prime Minister Abe call for an international economic order of fair and impartial rules for competition He also called for a forward-leaning economic reforms including workplace opportunity for women and a new era of innovative economic growth in his own country and he said and I quote again The vigorous economy that was once brimming with vitality as the engine of the world growth Has returned once again We'll be all watching Japan's progress with great hope and support Knowing that in the global architecture in which we all live Success is no longer confined within borders. It's shared beyond them If Japan embraces the future that it aspires to We will all be carried along Thank you very much Thank you as a secretary Rufkin that was really a terrific speech that not only focused on our theme of Japan then and now and Japan next But also put this in the context of what Japan of Japan's importance and significance to the world In the economic realm and in other realms, so we really appreciate that that opening Presentation Assistant Secretary Rufkin has agreed to take a few questions So if you have a question, please raise your hand wait for the microphone and please identify yourself Do we have questions? Yes, sir. Can you just wait for one second? Thank you My name is John from ECCO. I'm yesterday We have seen some media reports about the TPP negotiation between the United States and Japan Media reports said that the US Japan has just Tutu Restored or restarted some kind of negotiation in particular in five areas of market access Do you have any comments about this kind of reports? Thank you Well, I do have comments and our bureau at the State Department is working very very closely with USTR on TPP Which as you know is a huge priority for President Obama and before discussing any individual Issues, I just think it's important to remind ourselves again and publicly that this partnership accounts for 40% if we pull it off 40% of global GDP and Around 30% of world trade It represents a region of 800 million consumers and it's home to some of the largest and fastest-growing Companies in the world which I'm told will contribute almost one half One half of future global GDP growth in the coming decades and when you think about those stakes I think it's important that we think about those stakes because We have to we can't get stuck on any one issue. They're complex And they're tough, but the stakes are enormous and it's important for the world that we see this through so to answer your question the last three days actually there have been intense negotiations between our parties our countries and They've been they're focusing on the key issues which are agricultural access and and autos and The sincere hope of our negotiators is to build on the momentum that was created during the President's trip to To Japan and you know, they're tough issues, but we really are making progress There have been as you mentioned detailed discussions on the five sensitive product areas And it's not for me to discuss exactly where those stand. I'll leave that to USTR because the truth is that There's gonna be a chief negotiators meeting in Ottawa next week So but I believe and I've been told by representatives both at state and USTR that we are making Progress and there certainly is a will on both sides to try to find solutions to these complex issues Because the stakes are so large Hugh Patrick When will fast-track authority be renewed it seems to me we talked a lot about the negotiations But on on the American side We have to also get our act together that that's my sense of this and and I'm sure that's one of your major new challenges What is your thinking about how we're going to proceed? Well, sir, of course, that's a critical question and fast-track authority or otherwise known as TPA Is a high priority for our administration? it's it's key to our over-recognize overall economic and strategic objectives and and But in our opinion and the opinion of ambassador from and it is not required in order to close this deal And it is a little bit chicken and egg in that When we're able to resolve the issues and we're able to present Congress with a real deal It'll be a lot easier for Congress to discuss TPA because right now they don't really you know, they're being informed But they need something more concrete with with which to act. That's my personal opinion But I can tell you that USTR and the State Department They are constantly briefing members of Congress and we are constantly working on a dual track during this negotiation We're negotiating a deal and we're also talking to Congress and keeping them apprised so that we can achieve TPA I don't know if you saw but our president Suggested that the steel could be closed by the end of the year And I just read a report that the Japanese Embassy indicated maybe even by the end of November so That implies that we have great momentum, but certainly the TPA is not going to get in the way of this happening Maybe one more question. Okay, Jeannie Thank you, Secretary. My name is Jeannie Wendwood voice of Vietnamese Americans. Thank you for your work with Japan Talking about economy Would you talk about the energy the connectivity freedom of navigation and freedom of aviation a between Japan US and the Southeast Asia and in particular Partnership with Vietnam. Thank you. I'm sorry freedom of Energy connectivity freedom of navigation freedom of aviation Between Japan and Southeast Asia Yeah, and in particular with Vietnam Yeah, I am I don't have Anything specific to to be able to share with you I just know that these are all issues that we care deeply about or are working closely with our partners both in Vietnam and Japan and throughout the region I I don't have any any specific issues to confront I will I will say that that What you raise is so interesting to me because John Kerry When he came to office secretary Kerry said that economic policy is Foreign policy and foreign policy is economic policy And it is why he hired a whole team of people myself included inside the economic bureau to advance our economic ties with our friends In Vietnam and in Japan and elsewhere and our allies and the impact on politics the impact on foreign policy is evident So it is the closer we we we bond with our friends the more we Address and discuss any frictions that exist between our economies the better allies we are on a global strategic and security basis I don't have anything specific to add But I I hear your your your question and I and I know it's important to the US government these ongoing talks continue and Ladies and gentlemen, I'm terribly sorry, but I have to I have to get going But I really appreciate the chance to speak to you today, and I look forward to talking to a number of you When I get back from Japan for the first trip the first of many trips And I certainly hope that during my time as assistant secretary We will continue to advance even further the important strategic and economic relationship between our two great countries So thank you so much for this chance. Thank you