nhk world's mitsuko nishikawa tells us more about the cross-sharing system that woodford opposes. >> cross-shareholding is a traditional japanese system that gives big banks a lot of influence on boards of directors. some of olympus' largest share holders include megabanks such as mitsubishi usa. they are often cornerstone investors in japanese blue chips. they not only lend money and make interest off those loans, they also make profits off the shares they hold. woodford says the system while clearly serving the country well in the years following the second world war is in today's world harmful due to the unwritten convention that one must never publicly criticize another. now, while woodford is giving up his fight to the reform olympus, the company is still facing other problems. tokyo police are investigating its accounting fraud. plus, there's pressure to overhaul senior management. last month's report by an independent panel criticized the corporate climate that allowed executives to engage in illegal practices. the panel called for a clean slate. the president of olympus has p

. >> that was nhk world's mitsuko nishikawa. >>> u.s. president, barack obama, says the united states will boost its military strength in the asia pacific region. the increase comes even as the pentagon decreases the overall size of the u.s. armed forces. >> so our military will be leaner, but the world must know the united states is going to maintain our military superiority with armed forces that are agile, flexible and ready for the full range of contingencies and threats. >> the president is following through on defense cuts of nearly half a trillion dollars over the next decade. still, he said the u.s. will strengthen its presence in the asia-pacific region. some believe he is trying to counter the increasing strength of china. >> the united states will emphasize building the capacity of our partners and allies to more effectively defend their own territory. their own interests, through better use of diplomacy, development and security force assistance. >> panetta indicated that the u.s. will seek a larger role for japan and other a