WEBVTT - Eurasia's Seaman: Abe Will Stop Consumption Tax Passage (Audio)

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<v Speaker 1>five And that's a Bloomberg business flash. Yourmous ranted taking

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<v Speaker 1>start with Kathleen Hayes and Pim Fox on Bloomberg Radio.

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<v Speaker 1>Kuroshima a beautiful city in western Hanshu, the largest island

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<v Speaker 1>of Japan, of course, best known as the first city

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<v Speaker 1>in history to be targeted by a nuclear weapon, when

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<v Speaker 1>the United States Army Air Force dropped an atomic bomb

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<v Speaker 1>on the city at eight fifteen am August six nine,

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<v Speaker 1>nearly seventy one years later, President of Rock Obama used

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<v Speaker 1>the backdrop of the city's Memorial Peace Park to call

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<v Speaker 1>for call for a world without such weapons. He did

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<v Speaker 1>not apologize for America's use of atomic weapons during the war,

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<v Speaker 1>but he did express more for the human toll of

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<v Speaker 1>that war. And of course, this is part of his

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<v Speaker 1>trip to Japan to be part of the G seven

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<v Speaker 1>Summit of global leaders are very happy now to welcome

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<v Speaker 1>to the show to talk about the significance of his visit.

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<v Speaker 1>What was or wasn't accomplished at the G seven meeting,

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<v Speaker 1>Scott Seaman a senior analyst for you a Eurasia for

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<v Speaker 1>Asia excuse me, at the Eurasia Group. Scott, welcome, Thank you.

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<v Speaker 1>How significant is this to Japan, to the Japanese into

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<v Speaker 1>relationships between the two countries. I think it's hugely significant.

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<v Speaker 1>You know, I picked up on one thing in particular.

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<v Speaker 1>There was an older Japanese gentleman who I believe was

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<v Speaker 1>the leader of one of the groups of survivors from

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<v Speaker 1>the atomic bomb and Uh. I think the simple statement

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<v Speaker 1>that he started with was that he never expected to

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<v Speaker 1>see the US president visit Kidroshima in his lifetime. UH.

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<v Speaker 1>And there was there was no demand of an apology,

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<v Speaker 1>and of course the US made it clear that they

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<v Speaker 1>were not prepared to offer one. But overall, I think

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<v Speaker 1>this adds uh, you know, some closure uh to the

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<v Speaker 1>war and and certainly shows how far the two countries

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<v Speaker 1>have come since then. Scott of money, if you could

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<v Speaker 1>speak to the issues facing the G seven leaders and

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<v Speaker 1>what will Prime Minister Snobe be well for for Abe,

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<v Speaker 1>I think this this was an opportunity, certainly for him

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<v Speaker 1>to UH talk about the global economy. He wanted to

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<v Speaker 1>use this meeting as a way to tee up a

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<v Speaker 1>decision that we think he's very likely to make, and

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<v Speaker 1>that's to postpone a consumption tax hike that they've had

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<v Speaker 1>planned for some time that would be implemented next spring. UH.

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<v Speaker 1>He has not been keen on going ahead with that,

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<v Speaker 1>and one of the things that he wanted to accomplish

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<v Speaker 1>at this summit was to really highlight the theme that

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<v Speaker 1>the global economy UH is not doing well. And one

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<v Speaker 1>of the things that Japan can do to cont tribute

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<v Speaker 1>to efforts to UH to to kind of spurred growth

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<v Speaker 1>is to hold off on its own tax increased plans.

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<v Speaker 1>So UH, in terms of geopolitics, that's one of the

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<v Speaker 1>things that takes place when that's the G seven. You know,

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<v Speaker 1>when it's the heads of state meeting, you know, the

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<v Speaker 1>finance ministers meet, the central bankers meet, they can hammer

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<v Speaker 1>out more the nets of volts on on economic policies. UH.

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<v Speaker 1>If we were to go back twenty years ago or so,

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<v Speaker 1>we would be hammering on the Japanese for their currency

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<v Speaker 1>right for for keeping it too weak versus our dollar.

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<v Speaker 1>That mantel kind of shifted to China with the the

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<v Speaker 1>US focus. But uh, the g one of the taught

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<v Speaker 1>geopolitical issues is between China and Japan and the disputed territories.

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<v Speaker 1>Did anything come out of this that moves that forward

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<v Speaker 1>that they'd intensifies that struggle? I don't, Well, they're there

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<v Speaker 1>are a couple of different disputes, um. The one that

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<v Speaker 1>is is a bilateral dispute between China and Japan over

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<v Speaker 1>the Sankako Islands in the East China. See that that

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<v Speaker 1>has obviously been something that has really soured relations between

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<v Speaker 1>the two countries for several years now. Uh. And I

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<v Speaker 1>don't think that there was any particular effort during this

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<v Speaker 1>summit to to move ahead on on, you know, some

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<v Speaker 1>sort of reconciliation there. I think it's just kind of

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<v Speaker 1>a stable situation. But the bigger objective was really for

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<v Speaker 1>Abe and others to put a little more emphasis on

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<v Speaker 1>conflicts that are brewing in the South China see uh.

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<v Speaker 1>And Japan doesn't have a direct involvement in in territorial

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<v Speaker 1>disputes there, but certainly sees it as an area that

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<v Speaker 1>needs to remain stable because it's just such an important

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<v Speaker 1>area for for trade and transport. Well Scott, in that context,

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<v Speaker 1>I want to bring in a South Korea as well

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<v Speaker 1>as China. Are they concerned that the President's visit to

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<v Speaker 1>Japan could be taken by the Japanese as sort of

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<v Speaker 1>drawing a line underneath their efforts to come to grips

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<v Speaker 1>with their own wartime activities in places such as Korea

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<v Speaker 1>and China. Um. You know, that definitely was a concern,

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<v Speaker 1>And I think as I read the speech today that

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<v Speaker 1>the President gave at Hiroshima, it seemed as if there

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<v Speaker 1>was a great deal of thought put into trying to

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<v Speaker 1>make what he said as broad in terms of kind

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<v Speaker 1>of the time that it covered as well as as

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<v Speaker 1>kind of the geographic space that it covered. Um No,

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<v Speaker 1>I mean Obama did not want to kind of feed

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<v Speaker 1>into UH the impression that people in other countries in Asia,

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<v Speaker 1>especially China South Korea had that maybe this was going

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<v Speaker 1>to be an event that would identify Japan as as

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<v Speaker 1>the victim of World War two rather than UH than

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<v Speaker 1>other countries. But I think the the what he said

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<v Speaker 1>seemed to include UH people who were victims of the

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<v Speaker 1>war as a whole. So I think that they took

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<v Speaker 1>great pains to make sure that they didn't single Japan

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<v Speaker 1>out as a victim. Just real quick, Well Abby, get

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<v Speaker 1>this this backing off of that consumption tax increase. Yes, um,

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<v Speaker 1>so the way I see it, the diet session ends

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<v Speaker 1>next Tuesday, June one. He's expected at a press conference

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<v Speaker 1>following that to announce a postponement of that tax hike. Uh.

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<v Speaker 1>And then it would just be a matter of getting

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<v Speaker 1>his government to change legislation around that next fall. Thank

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<v Speaker 1>you very much. Scott Seaman. He is senior analyst for

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<v Speaker 1>Asia for the Eurasia Group. Joining us from Washington, d C.

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<v Speaker 1>Home to Bloomberg and one oh five point seven h

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<v Speaker 1>D two. Have a lovely Memorial Day weekend. You're listening

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