In 1982, Nakasone became prime minister. Along with Minister of Foreign Affairs
Shintaro Abe, Nakasone improved Japanese relations with the
USSR and the
People's Republic of China. Nakasone was best known for his close relationship with U.S. President
Ronald Reagan, popularly called the "Ron-Yasu" friendship. Nakasone sought a more equal relationship with the United States, and said: "President Reagan is the pitcher and I'm the catcher. When the pitcher gives the signs, I'll co-operate unsparingly, but if he doesn't sometimes follow the catcher's signs, the game can't be won". Nakasone said Japan would be "America's unsinkable aircraft carrier" in the Pacific and that Japan would "keep complete control of the four straits that go through to Japanese islands, to prevent the passage of Soviet submarines". Nakasone also visited President
Corazon Aquino in a series of talks between the
Philippines and Japan during a special state visit from 1986 to 1987, to provide good economic and trade relations. In economic affairs, Nakasone's most notable policy was his
privatisation initiative, which led to the breakup of
Japan National Railways into the modern
Japan Railways Group (JR). This led to 80,000 redundancies, unheard of in Japan until that point. He also privatized Nippon Telegraph and Telephone Public Corporation and Japan Tobacco and Salt Public Corporation to create
Nippon Telegraph and Telephone Corporation (NTT) and
Japan Tobacco Inc. (JT). The privatization of the three public corporations reduced the number of employees and significantly improved ordinary income per employee, productivity, and sales. For the first time in Japan's post-war history, bureaucrats lost their leading role. Nakasone also became known for having a
nationalist attitude and for wanting to stimulate ethnic pride amongst the Japanese. He was an adherent to the
nihonjinron theory that claims Japan is incomparably different from the rest of the world. Influenced by Japanese philosopher
Tetsuro Watsuji, Nakasone believed that Japan's "monsoon culture" inspired a special Japanese compassion, unlike the desert culture of the Middle East that produced the
Judeo-Christian "An
eye for an eye, a tooth for a tooth". In a speech in 1986, Nakasone said it was Japan's international mission to spread the monsoon culture abroad. This turned out however to be a controversial move which was heavily criticised by the Chinese Government (including in its newspaper, ''
People's Daily'') and led to angry demonstrations in Beijing. It was also attacked by opponents at home for violating the Constitution's separation of religion and state. Nakasone defended his actions by saying, "The true defence of Japan ... becomes possible only through the combination of liberty-loving peoples who are equal to each other ... The manner is desired to be based on self-determination of the race". He also said, "It is considered progressive to criticise pre-war Japan for its faults and defects, but I firmly oppose such a notion. A nation is still a nation whether it wins or loses a war". Nakasone also sought educational reform, setting up a commission. Its report recommended that "a spirit of patriotism" should be inculcated in children, along with respect for elders and authority. This was not fully implemented and came under attack from the
teachers' trade union. The commission also recommended that the
national anthem should be taught and that the
Rising Sun Flag should also be raised during entrance and graduation ceremonies. History textbooks were also reformed. In 1986, Nakasone dismissed his Education Minister,
Masayuki Fujio, after he justified Japan's
annexation of Korea in 1910. He then clarified his comments, stating that he meant to congratulate the U.S. on its economic success despite the presence of "problematic" minorities.
Ainu people living in Japan criticized this comment as ignoring the reality of racial discrimination against them. In 1987, he was forced to resign after he attempted to introduce a
value added tax to reduce the burden of direct taxes in a policy designed to cut the budget deficit. File:President Reagan and Prime Minister Yasuhiro Nakasone.jpg|Having lunch with
Ronald Reagan (at Nakasone's country residence in
Hinode,
Nishitama,
Tokyo in 1983) File:G-7 Summit 1983.jpg|With leaders of the
G7 (at the
9th G7 summit in 1983) File:President Ronald Reagan Walking with Prime Minister Yasuhiro Nakasone of Japan at Camp David.jpg|With
Ronald Reagan (at
Camp David on 13 April 1986) File:President Ronald Reagan and Nancy Reagan receive a gift from Prime Minister Yasuhiro Nakasone.jpg|With
Ronald Reagan and
Nancy Reagan (at
Camp David on 13 April 1986) ==Later political life==