“Wait in Good Faith” for Two Major Party System RENGO’s Response to DPJ/LP Merger Agreement (1 Sep 2003)

Democratic Party of Japan President Naoto Kan and Liberal Party President Ichiro Ozawa signed an agreement to merge the two parties on July 23rd. In response, RENGO released and endorsed “RENGO’s Stance on the Merger Agreement between the Democratic Party of Japan and the Liberal Party” in General Secretary Kusano’s name at its 25th Central Executive Committee Meeting held on August 22nd. In it, RENGO expressed an expectation to bring about a political system which will allow for shifts of political power in a two major political party environment and to “wait in good faith” for the outcome of merger between the DPJ and the LP.

RENGO¡s Response to DPJ / LP Merger Agreement Japanese Trade Union Confederation General Secretary Tadayoshi Kusano President Kan of the Democratic Party of Japan and President Ichiro Ozawa of the Liberal Party signed the agreement that would merge both of their parties on July 23rd. The agreement states that the biggest cause of Japan’s weakened state in the areas of the economy, politics, and society, as well as it loss of momentum to move ahead is due to the Koizumi administration’s failure to show any true initiative. The agreement goes on to say that the most urgent task for the revitalization of Japan is a full-scale change of government and to that they be “determined to leave aside minor differences for the sake of greater common interests;” all of which are necessary to establish a cooperative election system and to effect a change in the administration. According to the agreement, [1] both parties will merge by the end of September. [2] The Democratic Party of Japan will remain intact as a party; the Liberal Party will be disbanded at the point of merger. [3] After the merger, new party representatives, executive office, platforms and policies will be inherited from the current Democratic Party of Japan. [4] Adjustment of the candidates for the general election will be finished before the merger of both parties in September. RENGO greets this merger of the Democratic Party of Japan and the Liberal Party with great expectations for the revamping of Japanese politics: in other words: RENGO has always consistently sought to “realize a political system of two major parties in order to make a change in power possible.” RENGO will continue to wait and watch in good faith as both parties move to seek administrative power in masse. RENGO will determine its eventual stance on establishing relations with the new Democratic Party of Japan after observing its policies and how to coordinate an axis to the people while keeping eye on future developments with the merger.

<Reference Material> Agreement on the Merger of the Democratic Party of Japan and the Liberal Party Japan has become weak in various fields including the economy, politics and society and has lost its direction. The largest single cause for that lies in the political world which has failed to take any real initiative. Looking back at Prime Minister Junichiro Koizumi's political record over the past two years, it is evident by any one's standard that we cannot expect the Koizumi government coalition between the Liberal Democratic and the New Komeito Parties to exercise any true leadership. The most urgent task for the revitalization of Japan is not to select the Prime Minister from within the LDP but rather to change the government entirely in order to replace the ruling parties and the prime minister. The 1993 (Heisei 5) Hosokawa government pushed through political reforms that introduced the current election system which revolves around a single-seat constituency system that made it possible for opposition parties to take the helm of the central government. However, the two general elections held since then have not brought about a change of government because the opposition parties failed to cooperate with each other giving in to petty in-fighting during the elections. A system has been painstakingly formatted, but not been properly implemented. With that in mind, the DPJ and the Liberal Party have decided to set aside their minor differences for the sake of the greater common interest and agreed to merge according to the following criteria: Note The Democratic Party of Japan and the Liberal Party shall merge by the last day of September 2003 (Heisei 15). The Democratic Party of Japan will remain in tact as a party; the Liberal Party will be disbanded at the point of merger. The President of the new party formed after the merger shall be Democratic Party of Japan President Naoto Kan and the new party shall be directed under the leadership of the current Democratic Party of Japan. The platform, policies, manifesto and so forth of the new party formed after the merger shall be inherited from those of the current Democratic Party of Japan. Adjustments to and fielding of candidates for the general election shall be completed before the merger of the two parties in September 2003 (Heisei 15). Adjustment of candidates for single-seat electoral districts will in principle be prioritized according to those who a) were elected in single-seat constituencies in the previous election, and b) filed dual candidacy of both single-seat and proportional representation and were elected in proportional representation, lost in single-seat constituencies, but gained a greater percentage of the “losing rate” (the number losing votes gained in a single-seat district divided by the number of elected winner’s votes acquired). Both parties shall establish a preparation committee headed by both secretaries-general expediently for the smooth realization of the merger of the two parties and push ahead with preparations for the merger. July 23, 2003 President, Democratic Party of Japan, Naoto Kan President, Liberal Party, Ichiro Ozawa

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