March 20, 2003

1. The U.S.A., the U.K. and other countries commenced military action against Iraq today. I sincerely hope that the combat in the Gulf region will be quickly resolved and that peace and stability will be achieved in the Middle East as rapidly as possible.

2. Japan imports 86 percent of its total oil needs from the Middle East. METI will make every effort to prevent unnecessary concern on the part of the people of Japan by gathering and disseminating accurate information on the oil situation.

3. Since the securing of stable oil supplies is an international concern, it is important that we coordinate widely with other countries as we address this issue. At the International Energy Forum held in Osaka in September 2002, and on many other recent occasions, oil producing countries have committed to providing stable oil supplies. They can be expected to play their part fully. Through the International Energy Agency (IEA), Japan is also coordinating with other IEA member countries to do everything possible to ensure stable supplies of oil, including the release of oil reserves where necessary. Moreover, we are maintaining close contact with other Asian governments with a view to ensuring stability in Asian oil markets.

4. Japan has oil reserves sufficient for 171 days. We have determined that flexible use of these oil reserves in response to demand will ensure there are no serious short-term effects on oil supplies within Japan.

5. We are working to maintain a clear picture of economic trends caused by the oil situation that could affect everyday life or industrial activity.

6. Through the above measures, we are making every effort to minimize effects on Japan's economy and industry. To ensure their seamless implementation, I have today instructed my Ministry to establish a Headquarters for Iraq-Related Issues, which I will head. I have also directed the head of the Agency for Natural Resources and Energy to establish an Emergency Management Headquarters for Oil Security.

7. I would like to take this opportunity to remind everyone that we can all cooperate in addressing these issues by redoubling our efforts to conserve energy and, as consumers, maintaining a calm attitude.