next, we hear from japanese prime minister actions on the day on japan's economy and place in the world. he also sits down with gerard baker on japan's relationship with the u.s., japan and south korea -- china and south korea. [applause] >> good evening, ladies and gentlemen. i am shinzo abe. thank you very much for inviting me. i am delighted to see so many guests from the united states, as well as the nations of asia. please, enjoy your stay in japan. it has been more than four years since i have retaken the government. japan, before that, under the rule of the democratic party of japan was in wrapped with

pessimism with a since of resignation. japan was struggling with inflation. japan was not able to make its presence felt in the international arena. population is shrinking, thus it can no longer expect growth, japan is already in its twilight years, such was the lament we often heard looming large before us to give it all up. the stock price, at the time, was less than half of what it is today over 8,000 yen or so. i stood up to take on the challenge. i promised to restore japan to what she use to be. how is japan today? during the past four years through our economic policies, nominal gdp has grown by 9.5%, adding 47 trillion yen, an all-time high.

employment, which decreased by 290,000 jobs in the previous administration, despite the decline in population, rose by 1.8 5 million in four years. what's more, 82% of them, women, unemployment rate is at 2.8%, almost full employment level. number of regular workers increased by 790,000 just in the two years. and, actually, it has gone down to 550,000 before they took over the government. the number of foreigners visiting japan surged, as well, before the start of my administration it was 8 million in a year. last year, it reached 24 million, a threefold increase in immediately after taking over

the government i introduced visa waiver and relaxation. and went ahead with improving the duty-free system. the hospitality campaign is gaining momentum. we're targeting 40 million visitors in japan in the 2020. the year of olympic games, national tax revenue has expanded by 15 trillion yen, after the change in government, local governments have seen growth in their tax revenue for all the 47 prefectures, talking about the prefectures, all of the 47 prefectures now boast an active job openings rate of more than 1.0 meaning number of jobs is greater than number of applicants in every prefecture. this is the first time in history. as this trend continues, wage levels will rise, bringing it closer to the exit from

deflation. 2017 budget deliberation proceeded as scheduled and was approved without any amendment. pm abe: upon which -- from april, the rate of employment insurance premium was decreased. the disposal of employees, new system of scholarship, as well as plan to eliminate waiting list for entering for children are introduced and for university students, as well as children, already my government

has submitted to reform cultural policy legislation to the diet, but the bills are made into law and unprecedented reform will materialize. final draft was agreed on work start reform to be formulated into a bill to be proposed. in order for young couples to balance work and child care, new fiscal year's budget will be spent to increase nurseries and improve compensation for the nursery teachers. we are working to enhance long term care facilities and ensure enough caregivers to ensure those workers who are highly motivated should not have to quit jobs because of the need to take care of their parents. when we look at companies in the four years of my administration, corporate earnings have grown by ¥22 trillion. the money earned should not be withheld in the company to stop the wheels of growth. rather, i am doing my best , calling for a wage hike to bolster the purchasing power of the employees and for thorough promotion of a fairer trade practices between large company and the smes so that the fruit

of growth will be spread all over the nation. looking at household income from the basis of redistribution after tax and social security payments as well as benefits, the efficient is dropping. moreover, we are creating conducive environment for profits to be invested for the future. when all is realized, we will see increase in consumption and productivity. going forward, my policies are unchanged, economy first and exit from deflation, continue to shoot the three arrows of monetary physical and structure reform policy again and again to make them happen. economic growth of japan and stable livelihood for our people cannot be realized without working closely with the global economy, ensuring peace and security is a foundation for this end. to that end, my consistent

position under scoring how i manage the government is to strengthen japan u.s. alliance and to broaden the range of the diplomacy with the nation of the asian pacific. since japan is not best with natural resources and surrounded by the ocean, we started early to be proactive overseas whether they be smes. businesses have supported nation building in the asian economies and in europe and the u.s. they have expanded their businesses right after continuing to contribute to job creation. just two weeks ago, we have announced a contribution of $40 million to the new fund of ade. this is the initiative to introduce advanced technologies in the areas of environmental environment, transportation, and infrastructure. in order to development quality infrastructure, the $200 billion of contribution that have been announced previously will be activated within this year.

i am the prime minister of japan, therefore, for me, it is japan first. however -- however, be careful. listen to me. listen to me. however, the japan, i mean, is a japan that coexist and site by site with global prosperity and side-by-side with global prosperity and peace. since last year a series of general election and referendums have taken place in many countries giving birth to new leaders. in g7 alone this happens in the u.k. come u.s., italy, and france. last week, we saw it in south korea. it was a year where the attention of the to the choice of people of these countries and to this, skepticism over, free trade, the community of social affairs attracted attention in the u.k. in germany. general elections are coming. as we approach autumn in china,

top leadership reshuffle is expected. next bring comes the russian presidential election. i have emphasized free trade, because when creativity and can be fully exerted, and on top of that, global warming is advancing. it is already happening at this moment when the global community of china is challenged with difficulties, exchanges of insights, expertise, and they become the key to finding solutions, with respect government should do is to eliminate barriers to such activities and to bring institutions to render fair and just recognition of results of innovations. in order to promote free trade

at a steady pace in industries and sectors that will be affected, sufficient time will be spent by measured reforms. shall also make efforts to encourage sme activities and promote overseas. if it was economized, and transportation cost can be expected to decline. however, to say that one side is the trade surplus, the other side is suffering negative impact. the way of thinking would not do. after the start of this century, many emerging and and developing economies have a seated to the entered the wto. however, in some of the states, enforceable demand to domestic entities lack of discipline over state-owned enterprises no compliance even if it's established, these sort of deficiencies continue to be observed.

the move to protect intellectual property's need to be further strengthened for the very reason innovationecause across the border you need right now, the tpp has been packaged in the form to respond to these concerns. therefore, there has been no change in my conviction that tpp is necessary in the asia-pacific . thehe end of this week, signatories to the tpp 11 meeting will be convened. i look forward to advances in the discussion. the discussion, with regard to the united states last month, vice president pence held the first japan u.s. economic dialogue and agreed to continue the consultation on the strategy on trade and investment rules and issues. not only shall we accelerate in

and reinforce the flow and trade investment between japan and the u.s., we aspire to disseminate fair roles throughout the asia pacific by japan and the u.s. lastly, i'll talk about the future going forward. you may be skeptic about the future of this country with birthrate declining and population aging, is this country all right? that might be your feeling. it was a taboo, but my government has decided to target a desirable birthrate of 1.8 by the early 2020s and child care services are being expanded. i also attach importance to investing in human resources by encouraging the introduction of robotics and ai.

we show promise as a people to be equipped with the skills to improve results and outcomes. welcoming foreign workers ,ho have technical expertise and the number went above for one million the first time last year. my goal is to realize a society where each and every citizen can in a society that is dynamic. it is a japanese 0 version of inclusive society. every person that would be shining. advancement and empowerment of women is the key to reinvigorating the japanese economy. the experience and high academic backgrounds of women still remain dormant. it's not only about increasing the number of woman participating in the labor market, but having more woman in

leadership positions with responsibility at workplaces. this year with the support of harvard business school we have started a program for candidate woman to receive trading. i believe diversifies and experiences with individuals comingle and come together will , innovation will be promoted and eventually lead to services with new end would even lead to new social systems. yet of course we must never , despiteing on alert the strong warning by the global ago,nity when two days there was a launch of a ballistic missile. the threat of north korea is becoming severe at a higher level. terrorism is spreading across the world. covert maneuvers by isil has not ceased. we shall have to maintain an

unprecedented of intention and extreme force of collaboration. without peace and stability there will be no growth, no prosperity. it is not only the threat of north korea, but unilateral attempts to change the status quo by coercion in the east and south china sea has not ceased. the rule of law is breached and freedom is also under threat. under this, japan is strengthening with the united states than ever before from the leaders level to the defense corporation on the ground, alcor operation is very close. we are deepening our maritime security cooperation in termslef maritime patrol capacity building amongst us. at the end of next week with members including president prime minister may, under

the prime minister, the g7 summit will take place. vicers sharing universal will strengthen unity and solidarity. chewing my expensive last year summits and attending past summits, i am keen to contribute to the deliberation. thank you for very kind attention. [applause] mr. baker: thank you very much prime minister. you talked a lot about the japan's economy and economic relations. i want to ask you a couple of questions, if i may, a little bit more on that come especially on the international economic

picture. you've had a chance to be twice with president trump since he was elected president. by all accounts, you struck up a good relationship, played golf with him, i think, at mar-a-lago. you're not going to tell us who won? but he -- you obviously struck up good relationship and you've talked about the importance of the u.s. japan relationship. but you weren't able to persuade him to back off his campaign promise to withdraw the united states from tpp, and he's spoken very critically about tpp and indeed about international trade arrangements with other countries. with the administration now looking at international economic relations, the new u.s. administration, you now have, you have wilbur ross, the commerce secretary, who has been critical of some of japan's policies in the past. japan still has a $70 billion

trade surplusyou have wilbur roe commerce secretary, with the und states, larger than mexico only , second to china in terms of the u.s. deficits. are you confident that you can get a constructive trading relationship with the united states given the importance that president trump has attached to what he calls fair trade and to eliminating or at least reducing some of the trade deficits that the u.s. has? pm abe: translator: no. between japan and the united states, i believe economic cooperation can be developed and expanded. we will be able to build a win/win relationship. i am convinced of this. between president trump and i, myself, before the inauguration, that was last year and after the inauguration on the 10th of february, we have had a summit

meeting. and on those occasions, i have explained to him on the current status of japan u.s. trade on the automotive industry. for example, in the past, there was a criticism in the past . there was the so-called u.s. japan trade friction, but right now japanese companies have built factories in the united states and that have ensured many jobs in the united states and contributing wealth to the u.s. economy. and further, and with the currency fluctuation we have never made to expand ourselves by trying to sell it cheaply, so between japan and the united states looking at the trade economic relationship, it has hugely and i have explained to president trump and i believe he understands this. and after united kingdom, when it comes to f.d.i. and the united states, and investment

creating jobs in the united states, japan is number two. we are making huge investments in the united states and i have told president trump on this, and how should we expand and develop our relationship? we should create a framework. vice president pence and deputy prime minister aso will have a dialogue. and the other day, vice president pence visited japan. free and fair rules should be created together between -- together with the united states and as the trade rules in the world we have agreed on this and the infrastructure for railways and other infrastructures for individual projects, we will move forward in collaboration and cooperation. we have agreed on this count as well. and within this year there will be the sound round of deputy

minister aso and vice president pence dialogue will take place, so i believe without a doubt meeting the interests of the united states and japan we will have good discussion and good conclusion out of that. mr. baker: president trump prefers bilateral trade to multilateral arrangements like tpp and nafta. is there a possibility there for a bilateral u.s. japan free trade agreement some time in the trump administration? translator: between u.s. and japan, bilateral ftas or epas we do not another all. but there are multiple option we have in mind and we have to discuss what would be the best out of all options.

about multilaterals, indeed, i fully acknowledge the position of the trump administration, but there is the supply chain that exists and fair and free trade rules to be made in a multilateral setting to create such fair and open trade rules for many times. repeatedly i have explained to president trump -- and during our golf, i did not explain, but i did explain on other occasions. as for president trump, he did listen honestly to myself on that premise. mr. baker: and what about tpp itself? there has been a lot of talk that the 11 members of the tpp without the united states might go ahead with another arrangement. there is a lot of interest in the other trade possible trade rcep woulds under our ste

. you favor going ahead and building an agreement between the 11 members of tpp with the possibility of getting the u.s. involved again? have you given up completely on the idea of tpp? do you think it can be resurrected? pm abe: translator: on tpp, the 12 economies that have been engaged in intensive and finally agreed and it is of a very high level of ambition. there has been agreed very high level of high quality agreement has been reached through the agreement of the 12 economies, and this is quite relevant and important that such rules have been agreed at the tpp, and this momentum, i believe, should not be lost. and against this backdrop, japan should execute firm leadership so that the fruits and results , amongst the 12

hanoi, there will be a ministerial meeting, so i hope that the fact the way ahead will the definitely shown at the meeting. as for the tpp 11 to get together, we have already been given the standing by the united states. mr. baker: one of the themes we have been discussing today is the u.s. engagement with asia , and one or two people have expressed concern that since the presidential election and the rejection of tpp, since china is taking a much more assertive road, the one belt, one road, the aiib, the u.s. has less of a voice in asia now, and there is a lot of concern expressed here and elsewhere in asia, the u.s. theset be engaged in important asian economic and security conversations as japan and traditional allies might be. are you concerned about that? do you think the u.s. is disengaging from these asian

conversations? pm abe: translator: as for myself, in fact, today, with admiral harris, commander of the pacific command, i have just spoken with admiral harry harris. after trump took administration in a certain sense in this region regarding the security of northeast asia, in a sense i recognize the commitment has been strengthened. for, the situation in north korea. the trump administration is seriously tackling this situation, aircraft carrier carl vinson has been dispatched. mr. baker: it is finally dispatched great we are sure it's on its way now. it was delayed, i think, for a while. [laughter] pm abe: translator: of course, there is a strategic meaning. it could have been strategic, but meanwhile, before entering

the japan sea territory, the self-defense force engaged in joint exercise and there was movement northward. that was the significance, and meanwhile, what ever had to be done, had to be urged to north korea or we had to urge china so they would play their role. i believe and i imagine, i presume that was a strategic way of thinking. but in this way, there is a thorough demonstration of an attitude that all the options are on the table. that viewpoint has been demonstrated both in words and deeds. we highly appreciate this attitude. in addition to that in the south and the east china seas, regarding the situations occurring there about their attitude, the u.s. commitment is unwavering. the other day, during my summit talk with president trump during in the joint statement regarding

the senkaku island it is subject to article five of our security alliance it is now explicitly mentioned in the language with regard to relation with north korea for all circumstances. all options, including nuclear, this has also been documented, described explicitly, which means the u.s. commitment i think has been demonstrated i think in a stronger way, that is my understanding. mr. baker: let me ask you about north korea, if i may. in the last three years, north korea has tested more missiles than in the past 30 years , including just this weekend with a new missile with a longer range than we have seen in the past. this is an increasingly threatening posture we have seen from the north korean leadership. you have had many conversations with president trump, president moon in south korea south korea and president xi in china. the u.s. seems to be relying on china essentially to exert pressure on north korea and things perhaps that is the right

way to go to ensure that we resolve this threat from north korea. is that going to work? is it your impression that diplomatic, that security approach, through china is the most effective way to get north korea to back off this increasingly aggressive posture? pm abe: translator: already, japan and the united states and many other countries through the united nations security council resolution have been applying pressure on north korea. now, the china constitutes more than 80% in the overall trade in north korea. so with china dispensing its responsibility in a proper manner, i believe we will be able to bring a solution to the question of north korea. now about north korea is importing -- china has stopped import of coal from north korea.

but there are many other things that china can do. so we would like to encourage china to properly execute its responsibility and we are watching closely. and the missile with the launch by north korea recently, this is a very high level of the launch. it has -- for the first time reached altitude of 2,000 kilometers, and has been ballistic, the warhead. what is happening on the missile is to be assessed. i believe that was the purpose that is how we assess the of the experiment this time. that is how we assess the situation. the technology of the icbm may be progress, and we are very concerned with this. i would like to share this concern so we can exert pressure on north korea and when and if

nuclear test is conducted, then we need to have additional pressures to be applied, additional sanctions to be applied, through the united nations security council. on this count as well, china should properly take actions and china should understand fully . and between united states and china through the summit meeting , i understand that there were other talks on this regard. mr. baker: do you think china will? china seemed to have been more aggressive with south korea recently in its response to the aadployment of the th missile system. seems to be more aggressive at south korea than it has been with north korea. you talked about the limitation of coal but do you -- is china moving in the right direction there or does it seem to be still wanting to keep that close relationship with pyongyang in a way that is not putting much

pressure on them? pm abe: translator: for china, the one belt, one road, the extremely important forum was organized during the weekend. on that day, the missile was launched. were deeply chinese perplexed that north korea chose that date, how china would receive the message of north the point. would be so north korea is provocative behavior. for that, japan will strongly appeal to china. this is the time we need united solidarity and action. as for in terms of sino-japan relationship, last year at the g 20 meeting, i did have a summit meeting with president xi jinping. this year, this is the 45th anniversary of normalization of

diplomatic relationship. next year is the 40th anniversary of our treaty with china. president xi and we have agreed about taking these to milestone years. but foreign tourists and visitor numbers i mentioned, but it is the largest number coming to china from japan. as for international students come the largest number from china to japan. so person-to-person exchanges is at a very high level and as a trade partner, china is the largest trade partner for us. so with this situation -- in the way that china responds to the expectation of the global community, we would also like to urge china to move in that direction. mr. baker: and finally, prime minister, a new president has taken office in south korea just last week. he favors not only a more conciliatory relationship with north korea than his predecessor , but he has also taken a

tougher line with japan over the issue of the comfort women and he rejects the agreement you signed with president park a couple of years ago. i think you had a conversation with president moon last week , and this issue i'm sure came up. are you prepared -- is japan prepared to do more on this issue given the importance to you and to korea and to the united states of a healthy, productive relationship between japan and south korea. ? is japan prepared to make more concessions and acknowledge more responsibility for comfort women in the way that president moon would like? is that a basis for a deal you can get again? pm abe: translator: the other day with the new president moon we had a telephone conversation . that we would like to further develop our bilateral

relationship in a forward-look manner. and for north korea, what should be the position and stance we should take? we have discussed on this and to president moon i believe on the whole have been accepted, the . the stance of the dialogue and pressure and forward action that the international community should work in unity to try and stop the acts of north korea and try to denuclearize. i believe that we were able to come to the agreement. now for the comfort women issue , which has been a thorny issues for many years, with president park, we have come to agreement. now with the united states and the united nations and many other countries have commended us on what we have been able to win why the claim and irreversible and final way we

have come to agreement and we have come to the agreement on this. we have committed ourselves, both of our countries, and we should faithfully implement the agreement. it is something required of both of us. mr. baker: just for you quickly, there is no possibility of that agreement being renegotiated in any way? pm abe: translator: regarding this matter, for many years it has been a long-term issue between the two countries but between myself and president park we finally made our determinations. if one side unilaterally -- one party did not unilaterally gain advantage. both of us tried to make a future oriented decision and each of us, the leader, made a decision for the country. is it a country to country agreement or commitment? the global community was paying attention of our decision.

all the people of the world said that this is a good agreement. so there was a demonstration of high appreciation. so with that background the agreement was reached and therefore what is required now is that both of us follow the agreement and implement what has been agreed. i think that is required. mr. baker: prime minister, thank you very much indeed for your time. please join me in thanking the prime minister. thank you. over the announcer: over the next two hours, several commencement addresses, beginning with kamala , then eileen drake of aerojet rocketdyne holdings inc. , then howard schultz. first up is california senator kamala harris.

she gave the address to her on howard's university. masspoke about incarceration and the treatment of undocumented immigrants. it is about 25 minutes.