[Public Papers of the Presidents of the United States: George H. W. Bush (1992, Book I)]
[January 8, 1992]
[Page 51]
[From the U.S. Government Publishing Office www.gpo.gov]



[[Page 51]]

Joint Statement by the President and Prime Minister Kiichi Miyazawa of 
Japan: A Strategy for World Growth

January 8, 1992
    President Bush and Prime Minister Miyazawa today announced A 
Strategy for World Growth designed to strengthen the world economy.
    The President and Prime Minister expressed concern that growth of 
the world economy in 1991 slowed to the lowest level in nearly a decade. 
They recognized that the outlook for growth of the world economy this 
year is weaker than previously expected. This situation could adversely 
affect the prospects for income and jobs, undermine the efforts of newly 
emerging democracies and the developing countries to implement sound 
market-oriented economic reforms, and raises the spectre of renewed 
protectionism.
    The United States and Japan are the two largest countries in the 
world economy, together accounting for nearly 40 percent of total global 
production and more than 20 percent of world trade. The President and 
Prime Minister, aware of a special responsibility placed on their 
countries by their position, recognize that each country needs to pursue 
responsible economic policies that strengthen the international economy 
and global trading system. They have decided to undertake domestic 
policies to improve growth prospects, as a part of a cooperative effort 
which contributes to the attainment of sustainable growth with price 
stability and the promotion of global economic recovery.
    Prime Minister Miyazawa, with these considerations in mind, stated 
that the Government of Japan will submit to the Diet the fiscal 1992 
budget and the Fiscal Investment and Loan Program aimed at strengthening 
domestic demand by increased public investment through the central 
government and local governments, and contributing to the world through 
its official development assistance (ODA) and other measures, despite 
tight fiscal conditions. Prime Minister Miyazawa stated that the 
Government of Japan will monitor the progress of the above measures so 
as to assure that the expected effects are realized. The recent decision 
by the Bank of Japan to reduce interest rates is also intended to 
maintain sustainable growth with price stability.
    Toward the same end, President Bush also stated that he would be 
submitting to the Congress a comprehensive program to strengthen U.S. 
growth and competitiveness. The details of the program will be contained 
in the President's State of the Union message and his budget proposals 
for fiscal 1993 to be announced later this month. The President noted 
that the recent reduction in interest rates reflected the determination 
by the Federal Reserve to facilitate U.S. economic recovery and growth. 
The President also reaffirmed his commitment to achieve a substantial 
reduction of the U.S. budget deficit over the medium term.
    The President and Prime Minister reviewed developments in financial 
markets and agreed that recent exchange rate movements were consistent 
with current economic developments. They expressed confidence that the 
above measures and developments will contribute to correction of 
external imbalances.
    President Bush and Prime Minister Miyazawa expressed their continued 
support for ongoing economic policy coordination among G-7 countries as 
essential for achieving their common objectives as expressed in this 
statement. They stressed the importance of continued cooperative efforts 
and called on other industrial countries to join with them.