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April 6, 2017 | Asia | By admin | 0 Comments

By Mari Pangestu, Ligang Song

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Extra info for Japan's Future in East Asia and the Pacific: In Honour of Professor Peter Drysdale

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10 shows, bank lending had been falling since about 1996, and particularly sharply since 1998. In terms of stimulating the economy, banking system policy had been working at cross-purposes to monetary policy. Monetary policy had been relied upon, rather than a more sensible coordinated fiscal-monetary policy, as the principal anti-deflation tool in the forbearance policy framework. 10 Bank lending growth: headline, adjusted for special factors, 1995–2007 (per cent year-on-year change) 4 2 0 per cent After adjustment -2 -4 -6 Bank lending -8 Jan-95 Jan-97 Jan-99 Jan-01 Jan-03 Jan-05 Jan-07 Note: ‘Special factors’ include NPLs and so on.

The information passed on by both sides served to highlight the importance of the relationship and the growing awareness of the usefulness of maintaining regular ad hoc discussions on regional issues. In many respects these developments represent an important turning point. Trade discussions were supplemented by political dialogue on regional matters and as such the bilateral relationship was becoming, albeit slowly, multidimensional. Clearly this marked the beginning of a new framework for consultations and established an environment in which External Affairs officials and Japanese counterparts would consult and share information on a wider range of political matters over the next few years.

So far as I am aware however, the only comment made to Mr Suzuki in Canberra on this issue was a statement that Australia had been glad to help in any way Japan desired. 16 Watt’s memo appeared to have triggered a major offensive by External Affairs in April. Plimsoll, in registering Australian displeasure at Japanese voting in the UN and countering the response that questions of sovereignty were best solved in the United Nations, made the point to Ministry of Foreign Affairs official Nara that …surely he would not maintain that any country, by simply raising a claim to somebody else’s territory, could have it considered by the General Assembly?

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