    [Public Papers of the Presidents of the United States: William J. Clinton (1993, Book I)]
    [July 10, 1993]
    [Pages 1048-1050]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks With Prime Minister Kiichi Miyazawa of Japan in Tokyo
    July 10, 1993

        Prime Minister Miyazawa. President Clinton and I were able to agree
    upon the establishment of the Japan-U.S. framework for a new economic
    partnership. This agreement comes at a time to coincide with the Tokyo
    summit, which symbolizes the cooperation and coordination

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    between the G-7 partners in the international society in the post-cold-
    war era.
        This framework is something that President Clinton and I agreed to
    establish in our bilateral summit meeting held in last April. President
    Clinton and I share the views that establishing such a new framework and
    stabilizing Japan-U.S. economic relations from the medium- to long-term
    perspective and managing our bilateral economic relationship
    constructively are extremely important not only to the enhancement of
    the national life of our two countries but also to the maintenance and
    strengthening of the free trading system of the world.
        The negotiating teams of our two countries, based on those
    perspectives, the negotiating teams of both countries made serious
    negotiations both in Washington and Tokyo. And they made further
    negotiations on the occasion of President Clinton's visit, and
    subsequently, they have succeeded in reaching an agreement.
        Let me share you the gist of this framework in a few words. This
    framework aims at facilitating frank and broad exchange of views between
    our two countries, and aims at resolving the economic issues between our
    two countries based on the spirit of joint exercise between the two
    largest free market economies that are the United States and Japan, and
    also aims at advancing our cooperation on issues such as environment and
    technology which have significance. More concretely, under this
    framework we will operate on the principles of two-way dialog and
    limiting our consultations to matters within the scope and
    responsibility of government.
        Under those principles, we will deal with the following: to Japan's
    efforts at reducing the current account surplus and the reduction of the
    American Federal budget deficit, in the macroeconomic area. In sectoral
    and structural area we will deal with government procurement and
    deregulation, et cetera. And on our common task for cooperation on
    global perspective, we will deal with issues such as environment and
    technology. And we will announce the achievements regarding these issues
    at our biannual bilateral summit meeting.
        Furthermore, let me share with you that Japan intends to take
    measures on its own initiative to further expand its market access, to
    enhance its transparency, and promote deregulation, all along with our
    objective to achieve better quality of life. And I expect and hope that
    in the United States as well the U.S. Government will make progress in
    reducing the Federal budget deficit and in strengthening international
    competitiveness.
        Through the efforts of our two governments, we would like to
    contribute to the strengthening of Japan-U.S. economic relations and
    also to contribute to the development of world economy in the future.
        Thank you, Mr. Clinton.
        The President. Thank you. Thank you very much. Today's agreement is
    an important step toward a more balanced trade relationship between the
    United States and Japan, but it also benefits the world trading system.
        For years we have had trade agreements that have failed to reduce
    our chronic trade deficits. Those agreements have not worked because
    they lacked a commitment to tangible results and they provided no way to
    measure success. This has caused resentment to build over time on both
    sides, threatening our vital friendship.
        This framework agreement we are announcing today takes a different
    approach. As I said in my speech at Waseda University earlier this week,
    we are not interested in managed trade or trade by numbers but better
    results from better rules of trade. This framework launches us on that
    road.
        As the Prime Minister said, we will negotiate a series of agreements
    under this framework, some to be completed within 6 months, the rest
    within a year, that will allow greater penetration of the Japanese
    marketplace in specific areas of the economy. And these new agreements
    will include specific timetables and objective criteria for measuring
    success. These results-oriented agreements can create bigger markets for
    key U.S. industries, including the automotive industry, computers,
    telecommunications, satellites, medical equipment, financial service,
    and insurance. If we are successful, we will create benefits for
    citizens in both the United States and Japan: more jobs and
    opportunities for America's workers and businesses, new choices and
    lower prices for Japanese consumers, and new jobs for Japanese citizens
    in business establishments located in Japan but owned by citizens of
    other countries.
        Again, as the Prime Minister said, this framework also includes a
    basic bargain. We agree that the United States will significantly cut
    our budget deficit, which has clearly slowed the growth of the global
    economy. And we will con-

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    tinue our efforts to improve our competitive position, to be the high-
    quality, low-cost producer of more and more goods and services. In
    return, the Japanese agree to what the agree quotes as highly
    significant reductions in their trade surplus and increases in their
    imports of goods and services from the United States and other
    countries. In other words, both nations have made some tough choices.
        We should have no illusions. We announced today a framework to
    govern specific agreements yet to be negotiated. Negotiating those
    agreements will surely be difficult. But now, at least, we have agreed
    what the outcome of these negotiations needs to be: tangible, measurable
    progress.
        I have said for some time that the United States and Japan, the two
    largest economies of the world, must strengthen our friendship. Our
    political relationship is strong; our security relationship is firm.
    These trading disputes have been corrosive, and both of us are called
    upon to change. It is essential that we put this relationship on a
    footing of mutual respect and mutual responsibility. This framework is a
    good beginning.
        As the Prime Minister said, many people worked very hard on these
    negotiations. And before I conclude my statement, I would like to
    express appreciation to people on both sides. I want to thank on the
    American side Mr. Bo Cutter, who was our lead negotiator and is the
    Deputy Director of the National Economic Council; Charlene Barshefsky,
    the Deputy U.S. Trade Representative; Roger Altman, the Deputy Secretary
    of the Treasury; and Joan Spero, the Under Secretary of State. They did
    an excellent job. They worked many long hours with their Japanese
    counterparts. I also want to thank the Japanese negotiating team, and I
    want to say a special word of appreciation to Prime Minister Miyazawa
    for his leadership here at the G-7 summit and his constant attention to
    these bilateral negotiations while they were going on. He has shown
    wisdom, determination, and genuine leadership.
        Perhaps only I and a few others know how difficult these
    negotiations have been, how many late night discussions have been
    involved, how hard so many people have tried for our two countries to
    reach across the divide that has separated us on this issue. I do not
    believe that this day would have come to pass had it not been for Prime
    Minister Miyazawa, and I thank him in a very heartfelt way. I think he
    has done a great service today for the people of Japan, the people of
    the United States, and for the principle of a free world economy.

    Note: The remarks began at 10 a.m. at the Okura Hotel. A tape was not
    available for verification of the content of these remarks.