Tokyo attempted June 24 to patch up the damage caused by Prime Minister Ryutaro Hashimoto's remarks in New York on June 23 that sent stock prices on Wall Street into a free fall, saying his comments were taken out of context.

"Japan has never thought about selling U.S. government securities in the past and will not think about it in the future either," Finance Minister Hiroshi Mitsuzuka told reporters. Mitsuzuka met reporters when he changed planes at Narita airport on his way from Denver to Beijing.

"The prime minister's message was not communicated correctly," Mitsuzuka said, adding that Japan "will collaborate closely with U.S. authorities for the stability of exchange rates and the global economy." Speaking on the instructions of Hashimoto, Takatoshi Kato, vice minister of finance for international affairs, issued a statement saying the prime minister regrets that his intentions were not accurately conveyed.

"The prime minister's intention is to maintain the consistent policy of the government of Japan, which has been implemented, bearing in mind the good relations between Japan and the U.S." Kato said. After a lecture at Columbia University, Hashimoto said that while Japan had been tempted in the past to sell Treasury bonds for profit, it did not do so due to the overriding importance placed on Japanese-U.S. relations and the stability of foreign exchange markets.