*EPF503 05/23/2003
Text: State Dept. Hails Japan's Commitment to Cut Barriers to FDI
(May 23 Boucher statement on Foreign Direct Investment initiative) (410)

Following is the text of the May 23 statement by State Department spokesman Richard Boucher:

(begin text)

U.S. DEPARTMENT OF STATE
Office of the Spokesman
May 23, 2003

STATEMENT BY RICHARD BOUCHER, SPOKESMAN

U.S.-Japan Investment Initiative

The Secretary of State welcomed the commitment of the Japanese Government to take concrete steps to reduce barriers to foreign direct investment in Japan as outlined in the 2003 Joint Report on the U.S.-Japan Investment Initiative. The report, released on the day of the summit, was prepared for President Bush and Prime Minister Koizumi.

The report applauds Prime Minister's Koizumi's pledge to double foreign direct investment stocks in Japan within five years. Both governments agree that foreign investment is a catalyst for economic growth in Japan-creating jobs, transferring technology, reviving corporations, and supplying risk capital. It also helps build deeper political and social understanding between the two countries.

The report documents the Initiative's success in obtaining Japanese legislative changes to allow foreign companies greater use of merger and acquisition techniques and better access to information needed to conduct due diligence. The United States will continue to work to ensure that foreign companies have the same opportunity to merge with or acquire firms in Japan as Japanese corporations do.

The report stresses the demographic changes facing Japan and the need for Japan to lift investment restrictions in educational and medical services to face these challenges. Japan took steps to improve the process of restructuring and is working towards changing rules to promote labor mobility.

Both governments agreed on the importance of public perceptions and conducted outreach efforts in Japan and the United States to provide the public with accurate information on the investment climate. U.S. and Japanese private sector executives worked closely with government participants in Investment Initiative meetings providing valuable insights into the investment marketplace.

Under Secretary of State for Economic, Business, and Agricultural Affairs Alan Larson and Japanese Ministry for Economy, Trade, and Industry Vice Minister for International Affairs Tadakatsu Sano chair the Investment Initiative, which is part of the U.S.-Japan Economic Partnership for Growth (EPG). President George W. Bush and Prime Minister Junichiro Koizumi launched the EPG in June 2001 to drive economic renewal and revitalization in both Japan and the United States.

This year's Investment Initiative report is located at www.state.gov.

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(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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