    [Public Papers of the Presidents of the United States: William J. Clinton (1993, Book I)]
    [April 16, 1993]
    [Pages 438-445]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's News Conference With Prime Minister Kiichi Miyazawa of
    Japan
    April 16, 1993

        The President. Good afternoon. I'm delighted to welcome Prime
    Minister Miyazawa to Washington and the White House. I especially
    appreciate his making this very long journey so soon

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    after he hosted the foreign and finance ministers of the G-7 in Tokyo in
    discussing aid to Russia.
        There is no more important relationship for the United States than
    our alliance with Japan. We are the world's largest economies, with 40
    percent of the world's GNP between us. Our security ties have fostered a
    generation of peace in the Asia-Pacific region and remain critical to
    the region's continued stability and prosperity.
        As we survey the key security challenges of this decade--supporting
    reform in Russia, advancing the Middle East peace process, efforts
    toward reconciliation and peacekeeping from Somalia to Cambodia--it is
    clear that there must be sustained cooperation between the United States
    and Japan. To help us meet these challenges I have stressed with the
    Prime Minister the need for some change in our relations. The cold war
    partnership between our two countries is outdated. We need a new
    partnership based on a longer term vision and, above all, based on
    mutual respect and responsibility.
        There have always been three elements to our relationship with
    Japan: our economic dealings, our security alliance, and our cooperative
    efforts on global problems. Each is essential to our relationship, and
    each must serve our mutual self-interests. But during the cold war,
    security relations often overshadowed other considerations, especially
    economic concerns. In today's world, as I have often said, the United
    States cannot be strong abroad unless it is strong at home. And our
    strength at home depends increasingly on open and equitable engagement
    with our major trading partners. That requires that we now pay special
    attention to the economic side of our relationship.
        Our security partnership is strong. That relationship has been an
    anchor for Pacific stability for two generations. It remains fundamental
    to both our interests. The United States intends to remain fully engaged
    in Asia and committed to our strategic alliance and our political
    partnership with Japan.
        The Prime Minister and I discussed a range of security matters in
    the Pacific region that concern both of us, including efforts to gain
    the fullest possible accounting of our POW's and MIA's in Vietnam and
    North Korea's refusal to comply with the international nuclear
    inspections and standards, which causes us serious concern. Because of
    the importance of our security relationship, we will maintain close
    working ties between our two defenses. And I am pleased that the Prime
    Minister will be meeting later today with Defense Secretary Les Aspin.
        We also reviewed many global issues that challenge both our nations.
    In particular, we talked about the extraordinary meeting of G-7 foreign
    and finance ministers just completed in Tokyo to provide mutual support
    for Russian economic and democratic reforms. I appreciate the Prime
    Minister's leadership in convening that meeting. We agreed that the
    success of these reforms is critical to world peace and prosperity. I
    believe both our nations understand the stakes and stand ready to work
    in partnership with President Yeltsin and Russia's other reformers. We
    look forward to the G-7 summit this July in Tokyo and to Russian
    participation in the G-7-plus meeting.
        But economics were at the heart of our discussions. I stressed that
    the rebalancing of our relationship in this new era requires an elevated
    attention to our economic relations. That must begin with an honest
    appraisal of each country and our mutual responsibilities. The fact is
    that I have enormous admiration for Japan's economic performance. The
    Japanese have been pioneers in high quality manufacturing. Their record
    of innovation and prosperity has been built on hard work and social
    cooperation. But we and many countries have other concerns as well. I
    stressed to the Prime Minister that I am particularly concerned about
    Japan's growing global current account and trade surpluses and deeply
    concerned about the inadequate market access for American firms,
    products, and investors in Japan.
        I recognize that these are complex issues. But the simple fact is
    that it is harder to sell in Japan's market than in ours. America is
    accepting the challenge of change, and so, too, must Japan.
        For our part, the United States is making economic renewal over the
    long term our highest priority. And we are not making the hard decisions
    many of our trading partners have urged us for years to make, required
    to put our economic house in order. Our good friends, like Japan, for
    some time have urged us to do this, and we are attempting to do it, by
    bringing down our deficit through a combination of spending cuts and tax
    increases and committing ourselves to long-term investment.
        It is important that Japan lead the way to global economic growth.
    The Prime Minister's newly announced stimulus program is a very

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    good first step toward stronger domestic growth in Japan. But as in
    America, it must be part of a continued and sustained effort. Japan's
    goal must be to become one of the engines of growth that creates jobs
    not only in Japan but throughout the world.
        In addition, the Prime Minister and I reaffirmed our commitment to
    lead the Uruguay round to an early and successful conclusion. We are
    committed to making the Asia-Pacific Economic Cooperation Organization a
    vehicle for trade liberalization in the region. And I look forward to
    the United States hosting that organization in Seattle later this year.
        Robust economic growth in America and Japan is in everyone's
    interest. That's why I hope our own Congress will pass our jobs package
    and the budget, just as I hope Japan will continue taking steps to boost
    its own economic growth. But macroeconomic action alone is not enough. I
    am concerned not only about how much we sell but about what we sell. Our
    companies that manufacture high-quality, high-wage goods are among the
    most competitive in the world. If their products are to be a greater
    part of our exports to Japan, if our workers are to receive their fair
    share of the benefits of trade, Japan's markets must be more open.
    United States companies bear the responsibility for providing high-
    quality and competitively priced goods, but when they do, as
    increasingly they do today, Japan's markets must receive them.
        When our two nations take these economic steps individually and
    together, we will be the two strongest drivers of global economic
    growth. That growth is essential not only for our own prosperity but
    also for the success of the world's many new and emerging democracies.
        In order to take these steps, we also need to develop a new
    framework for our two nations to address concretely our economic agenda,
    the structural and sectoral issues that can expand growth and increase
    trade and investment flows in key industries. This framework should also
    enable us to discuss other issues in which we can cooperate, such as
    technology and the environment. Within the next 3 months, the Prime
    Minister and I expect to have a plan for specific negotiations that can
    then occur on an expedited basis in these areas. The Prime Minister and
    I also agreed to meet twice annually, including during the G-7 annual
    summit. We have agreed to do this because we believe this new
    partnership deserves our highest priority from the highest levels of our
    Government.
        I view today's discussion with the Prime Minister as a very positive
    step in our effort to begin a new and mutually beneficial stage in the
    long and productive friendship between the United States and Japan. Each
    spring, all who reside here in the Nation's Capital have a wonderful
    reminder of that friendship. Just blocks from here at the Tidal Basin,
    the circle of flowering cherry trees, begun as a gift from the people of
    Japan, are the uplifting image that defines the start of our season of
    hope.
        Today I believe the new partnership we are forging between our
    nations can help to usher in a season of hope not only for ourselves but
    for the world as well, the season when we restore economic growth, when
    we expand economic opportunities in our own countries and elsewhere,
    when we help to fuel the worldwide movement toward democracy, and when
    we help to lay the foundation for peace and progress in the next
    century. I look forward to working with Prime Minister Miyazawa in the
    coming months as we join together to build that new partnership.
        Mr. Prime Minister.
        Prime Minister Miyazawa. Mr. President, thank you for your kind
    words, and thank you also for your very warm welcome today.
        I have been looking forward to this important meeting. May I say
    that I have a sense of accomplishment in that we have built a personal
    relationship of mutual trust. I am convinced that our new partnership
    can respond to the needs of a new era. Our partnership is crucial for
    making the world more peaceful and prosperous. The President and I have,
    therefore, agreed to meet at least once every year, separate from the G-
    7 process.
        Let me comment briefly on four areas of our discussions today.
    First, we affirmed the continuing importance of Japan-U.S. security
    treaty in the post-cold-war era. Second, on the economy, I welcome the
    President's leadership in tackling the budget deficit problem head on.
    On our part, Japan's new '93 fiscal budget is geared to stimulating
    domestic demand. And 3 days ago, my government decided on an additional
    package of expansionary measures totaling $116 billion to further
    stimulate our domestic demand. This will certainly accelerate our
    economic growth.
        I also stressed our continuing efforts to increase market access. I
    further explained to the

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    President that my government has decided to undertake a new funds for
    development initiative to facilitate financial flow from Japan to
    developing countries. These respective efforts by both Japan and the
    United States are critically important for ensuring world economic
    growth. They are also vital for strengthening the foundation of our
    partnership.
        In the area of our bilateral trade and economic relations, I
    stressed to the President that our economic prosperity is founded on our
    deep economic interdependence. We must nurture this relationship with a
    cooperative spirit based upon the principle of free trade. This cannot
    be realized with managed trade nor under the threat of unilateralism.
        Our relationship must be a plus-sum relationship, not a zero-sum
    one. It is in this context that I expressed serious concern over some
    trends in the United States. I explained my government's policy to
    continue efforts to increase our market access. But this must be done
    with parallel efforts of the United States to strengthen
    competitiveness, export promotion under the free trade system.
        On the Uruguay round negotiations, we cannot allow them to fail. And
    after 7 years, we must reach a realistic agreement through further
    negotiations.
        Recognizing the importance of advancing our new economic
    partnership, we need to develop a new framework for our two nations to
    address the structural and sectoral issues of both countries that can
    promote trade and the investment flows in key industries, as well as
    enhance our cooperation in such areas as environment, technology, and
    development of human resources. Within the next 3 months, the President
    and I expect to create such a new framework.
        Third, on Russia, Japan chaired the meeting of foreign and finance
    ministers of G-7 countries, subsequently joined by the Russian
    ministers, which ended yesterday in Tokyo. I cooperated closely with
    President Clinton on the preparations for this meeting, talking over the
    phone a few times. I believe the joint ministerial meeting sent a strong
    message of support for Russia's efforts for democratic and economic
    reform, and its law and justice foreign policy. At the opening session
    of that meeting, I announced a $1,820,000,000 package of Japan's
    bilateral assistance to Russia. Today the President and I discussed how
    we would follow up and build on the results of that meeting as Russia
    undergoes a delicate period of transition.
        Fourth, the dynamic growth of the Asia-Pacific region promises
    benefits for the entire world. But we must bear in mind that the region
    is undergoing changes with risks and instabilities. American presence
    and Japan-U.S. security treaty are indispensable, stabilizing elements
    for the region. I assured the President that Japan would continue to
    provide host nation support which amounts to $4,600,000,000 in the year
    1993. Japan will also work together with the United States to build more
    cohesiveness and the feeling of reassurance through regional dialog and
    cooperation.
        Finally, let me make a personal observation. For half a century, I
    have been involved in bilateral regulations in one way or another. Now,
    talking to the youthful new leader of this great nation, who has emerged
    at an historic time of changes in the world, I have felt optimism for
    the unbounded possibilities of our two nations working together in our
    new partnership to bring a better world for all of us.
        Thank you very much.

    Bosnia

        Q. Mr. President, if all bets are off now, are you seriously
    considering the use of air power in Bosnia against the Serbs and also
    lifting the arms embargo? Have you given any kind of ultimatum to the
    Serbs? And what kind of a feedback are you getting from Russia and the
    allies for stronger action?
        The President. Let me try to answer some of those, anyway. We began
    this morning with a discussion of the situation in Bosnia. And the
    Secretary of State has been on the phone quite a bit today, consistent
    with his obligation to be part of the meeting with the Prime Minister.
    All I can tell you is that, at this point, I would not rule out any
    option except the option that I have never ruled in, which was the
    question of American ground troops.
        I would also remind all of you that I have operated from the
    beginning under the assumption that whatever is done must be done within
    the framework of a multilateral cooperation, that this was not something
    the United States could effectively do alone.
        Since we decided to become involved there after the situation was
    already quite severe, we have dramatically increased the availability of
    humanitarian aid, secured a resolution to enforce the no-fly zone,
    become involved in the

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    Vance-Owen negotiations in a way that got the Bosnians to agree, and
    have worked on strengthening the sanctions which, while not doing much
    to stem the violence in Bosnia, certainly have exacted a price from the
    Serbians economically.
        Those are the things that I have been able to do, taking a situation
    that was in quite bad shape when I found it and within the limits of
    multilateralism. I wouldn't rule out other steps. I wouldn't rule them
    in. All I can tell you is that I'm going to be spending a lot of time on
    this today, and I'm very concerned about it. And I'm outraged that the
    Serbians, when given the opportunity, did not sign on to the Vance-Owen
    process.

    Japan-U.S. Trade

        Q. I would like to ask to the President--[inaudible]--tough talk
    with the Prime Minister regarding trading issue, do you think this is
    the right way for the United States to get along with Japan? And my
    other question is do you have--[inaudible]--a substantial result from
    this meeting regarding trading?
        The President. First of all, let me reiterate what I said. Our
    relationship is built on shared values and a commitment to democracy. It
    has a security aspect. It has an aspect of cooperation on global
    affairs--and we discussed those in great detail--and it has a bilateral
    economic aspect. Two nations can be great friends and can admire each
    other greatly and still not agree on every issue.
        We have had a long and substantial trade deficit with Japan, which
    is highly concentrated in manufacturing and in certain sectors of
    manufacturing where we now believe we are competitive in price and
    quality: Autos, auto parts, electronics, supercomputers,
    semiconductors--you know the list--agriculture--as well as I do.
        The difference--I don't want to characterize the issue as tough or
    not tough. I want it to be different. I want our relationship now to
    focus on the specific sectors in which there are problems and on the
    kind of structural difference which makes it difficult for us to ever
    meet. We have differences in patent law, differences in antitrust law,
    differences in the way our financial services and our other services
    sector works. And what I asked the Prime Minister for was a change in
    the direction of our relationship so we could focus on specific sectors
    and specific structures, with the view toward getting results.
        I would just say that we have gotten some results in the
    semiconductor area where there was a specific agreement. But there's
    also been some progress in the auto parts area where there was a more
    general agreement. I think when we focus on specific areas, even though
    we may differ about specifically how we should do that, we tend to make
    progress. And I say this in a way of hoping that will lead us to greater
    cooperation.
        The world needs a strong Japan. The world needs a strong United
    States. The world needs these two countries to cooperate. And it can
    only happen if we are making real progress on this trade deficit.
        Q. The trade deficit has been stubborn for many years. It just went
    up again today, the Commerce Department reported. Why do you think that
    you can do something different now that your predecessors couldn't do?
    The Prime Minister just said that access for American products to
    Japanese markets would have to go along the lines of free trade. Would
    you like to see specific help for specific industries and targets?
        The President. Well, let me reiterate what I said. I would like to
    have a focus on specific sectors of the economy, and I would like to
    obviously have specific results. We had a semiconductor agreement which
    gave some hope that this approach could work. There was also a more
    general commitment in the area of auto parts which has shown some
    progress.
        Let me say that I think there are three or four things working today
    which may give us more results: Number one, the appreciation of the
    Japanese yen; number two, the stimulus program, which the Prime Minister
    has talked about--the last time we had a measurable drop in our trade
    deficit with Japan, it was after Japan adopted a stimulus program;
    number three, a breathtaking increase in productivity and quality by
    American manufacturers over the last several years, which makes us the
    low cost producer in many of these areas now; and number four, a
    different approach, commitment to focus sector by sector. The Prime
    Minister--let's not paper this over--there are some differences still
    between the Prime Minister and me about what kinds of agreements we
    should make, sector by sector, on these structural issues. But if we
    focus on them and talk about them specifically, honestly, and openly, I
    believe this is very different from what has happened in the past.

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    Japan's Support for Aid to Russia

        Q. Mr. President, what is it that you really wanted to convey to
    President Yeltsin in Vancouver when you reportedly told him that when
    Japanese say yes, they often mean no? And secondly, using probably the
    same degree of candid description, would you care to characterize the
    Japanese economic activities in the arena of international trade and the
    economy?
        The President. You know, let me say first of all, the world would be
    a sad place if people could never say anything in an offhand manner
    without having it turn into an international incident. I remember when I
    was elected, someone in your country suggested that Presidents always
    spoke a lot of hot air once they got elected. I took no offense at that.
    That's a part of the daily life.
        I think your Prime Minister made the best statement of all when he
    said it reminded him of that old American song ``Yes, We Have No
    Bananas.'' You asked me a question, what I meant; I don't know whether
    to tell you yes or no. I don't know what I meant anymore. [Laughter]
        I will say, let me make the real point: The Prime Minister answered
    the question with a resounding yes by agreeing, number one, to host the
    meeting of foreign and finance ministers in Tokyo to discuss Russian aid
    and, number two, to a very aggressive commitment of $1.8 billion to help
    to alleviate the situation and to support Russian reform.
        So Japan's answer to this problem was clearly yes, capital Y-E-S,
    yes.

    Stimulus Package

        Q. Mr. President, you mentioned the stimulus program that Miyazawa's
    government has put forward and described it as a good first step. If
    that's a good first step, sir, is it really reasonable to argue that
    your own stimulus program, less than a seventh of that, is a first step
    of any significance at all?
        The President. I think it is because the circumstances are
    different. Let's go back to the mid-seventies, and perhaps Prime
    Minister Miyazawa could fill in the blanks, but if my memory is right,
    Japan had a very large budget deficit about 15 years ago, which they
    then set about to erase. And they worked very hard to do it. They are in
    a surplus position now if you take all their government budgets
    together, social insurance and all of that. They're in a surplus
    position. So they're in a position to have a bigger stimulus. Also, they
    have a big trade surplus with the rest of the world, so the economic
    prescription to get growth back in their country and also to reduce the
    trade surplus would be to dramatically expand domestic demand.
        We have a large trade deficit, and we are in an economic recovery,
    that is, our projected growth rate, economic growth rate is larger than
    the Japanese projected rate before their stimulus. But our problem is
    that even in recovery we, like the Europeans, weren't generating any new
    jobs. So what I am trying to do here is to fire not a shotgun, but a
    rifle to try to take advantage of the economic recovery and the fact
    that I do have a long-term dramatic reduction of the deficit which more
    than covers the cost of this modest stimulus to create new jobs. So,
    there are two different programs with two different objectives. I think
    both of them are quite well-founded.

    North Korea

        Q. Did you discuss options against North Korea with Prime Minister
    Miyazawa? Also, could you tell us which is the United States policy,
    sanctions or direct talk with North Korea?
        The President. We discussed the situation in North Korea and what
    our options were and what could be done within the next couple of months
    to try to persuade North Korea, number one, not to withdraw from the NPT
    regime and, number two, not to pursue an aggressive development program
    for nuclear weapons. And we talked about the relative merits of both
    sanctions and persuasion and who might be able to talk to North Korea
    and what might be able to be done to convince them that this was not the
    way to go. We discussed the whole range of options.

    Gay Rights

        Q. Mr. President, in an hour or so you're going to meet with gay
    rights leaders in the Oval Office--the first time in history,
    apparently, that this has happened--a meeting that mysteriously is
    closed to television cameras. Would you (a) like to reconsider that in
    that it appears that you're trying to make this a very low-key exercise?
    And secondly, what do you say to the gay rights leaders who regard your
    decision to skip their march next weekend as

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    something of a snub?
        The President. Well, let me first of all answer--I didn't know about
    the thing being closed. I can't comment on it because I haven't thought
    about it.
        But I don't see how any serious person could claim that I have
    snubbed the gay community in this country, having taken the position I
    have not only on the issue of the military but of participation in the
    Government. I have, I believe it's clear, taken a stronger position
    against discrimination than any of my predecessors. And it is a position
    that I believe in very deeply, one that I took publicly in 1991 before
    there was any organized political support for me in the gay community.
    It had nothing to do with politics and has everything to do with the
    fact that I grew up in a segregated society and have very strong
    feelings about the right of everybody who is willing to work hard and
    play by the rules to participate in American life.
        During the time of the--on Saturday, I'm going to be with the
    Senate. On Sunday, I'm going to meet with the newspaper publishers. I
    mean no snub. But Presidents usually don't participate in marches. That
    has nothing to do with my commitment on the fundamental issue of being
    antidiscrimination.
        Yes, in the back.

    Japan-U.S. Trade and Japan's Economy

        Q. Mr. President, I know the United States is seeking the result-
    oriented trade policy. So my question is that the U.S. is also seeking a
    visible result in the area of macroeconomic problems, such as a sharp
    decline of the Japanese trade surplus or something?
        And that the next question is for Prime Minister Miyazawa. Did you
    make any commitment in the future of the Japanese economy, such as the
    1994 growth rate or a trade surplus or something?
        The President. You want me to go first? I'm not sure I entirely
    understood your question, but let me answer you in this way: When the
    Prime Minister and I were discussing this meeting in our private one-on-
    one meeting, he pointed out quite accurately that the last time there
    was a reduction in the trade deficit that the U.S. has with Japan was
    after a significant economic stimulus program was adopted several years
    ago in the eighties which he helped to engineer in a previous capacity.
        And then he said, but still we may not get the trade deficit down
    low enough for the United States purposes, and so perhaps we should
    examine these things sector by sector as well as some of the structural
    problems relating to the differences in our laws and the way they
    operate and some of the way we're organized. Obviously, beyond that in
    terms of how you get those results, there are still things to be hashed
    out and differences. But I consider that to be a significant move
    forward, that we at least have agreed on the conceptual framework in
    which we will deal with these problems.
        Prime Minister Miyazawa. The $116 billion is a sizable amount of
    money, particularly on top of the $86 billion we committed over this
    last year. These two stimulus measures are bound to affect the Japanese
    economy; no doubt about it. By this time of the year, we feel the
    Japanese economy has picked up, recovering slow but steady, and I am
    sure that the government-forecasted 3.3 percent growth is, I think,
    within our reach.

    Bosnia

        Q. On Bosnia, do you feel that this is a time for American
    leadership, that sanctions have obviously not had any effect on the
    Serbian behavior, even though they've had an effect on the Serbian
    economy? Are you trying to persuade our allies to lift the arms embargo,
    to take other steps including possibly air strikes? Or do you feel that
    this is something where your hands are tied by our European partners?
        The President. I think all I should say now, because we are engaged
    in rather intense discussions about this, is that I think the time has
    come for the United States and Europe to look honestly at where we are
    and what our options are and what the consequences of various courses of
    action will be. And I think we have to consider things which at least
    previously have been unacceptable to some of the Security Council
    members and some of those in NATO and in other common security
    arrangements of which the United States is a part.
        I do think that the United States, as I have said for a long time
    now and said during my campaign, has an interest in what happens in
    Bosnia. I think we have an interest in standing up against the principle
    of ethnic cleansing. If you look at the turmoil all through the Balkans,
    if you look at the other places where this could play itself out in
    other parts of the world, this is not just about Bosnia.

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        On the other hand, there is reason to be humble when approaching
    anything dealing with the former Yugoslavia. Everyone remembers the
    experience of the German army there during World War II. You have only
    to look at the topography of the country to realize the limits of
    outside action there. So, we have to be humble in the face of it, and we
    haven't had a very good hand to play, at least in the last 2\1/2\ months
    since I've been looking closely at this.
        But I do think the United States at least has an obligation to force
    the consideration by all the parties of all responsible options and try
    to come to the best possible result. And that's what I intend to do.

    Note: The President's 11th news conference began at 1:59 p.m. in the
    East Room at the White House.