[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partnership between our two countries is outdated.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.