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The election of Shinzo Abe as the leader of Japan's ruling Liberal Democratic party and now prime minister will have profound repercussions for Japan and East Asia. Most western commentary during the premiership of Junichiro Koizumi has been concerned with the extent to which Japan has allowed a freer rein to market forces.

The second is that the role of China trade in Japanese economy, important as it is, has often been exaggerated, as proven by our experience of the past 6 years.

China has become a major presence for most countries around the world but notably for its neighboring countries in Asia. So I think it is a common position for Japan and its Asian neighbors that we certainly would strive to maintain as much as possible friendly relations with China.

When I became prime minister last September, I promised the Japanese people that I would not tolerate the politics of indecision. A propensity to delay difficult and weighty decisions has been hurting our country. It is detrimental to our economy, society and future, and it cannot be allowed to continue.

My observation is that after one hundred and twenty years of modernisation since the opening of the country, present-day Japan is split between two opposite poles of ambiguity.

It makes sense for Japan to pursue a more independent role in the world, following Latin America and others in freeing itself from U.S. domination.

We have new developing ties with Japan whom always supports our democratic process and economic development.

Self-deception ultimately explains Japan's plight. The Japanese have never accepted that change is in their interest - and not merely a response to U.S. criticism.

For decades, Japan has been a friend and reliable trading partner with the United States, and I anticipate that relationship will prosper.

China will be the answer to Japan's problems.