    [Public Papers of the Presidents of the United States: William J. Clinton (1995, Book I)]
    [June 15, 1995]
    [Pages 889-893]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's News Conference With Prime Minister
    Tomiichi Murayama of Japan in Halifax, Canada
    June 15, 1995

        The President. Good afternoon. Before turning to my meeting with
    Prime Minister Murayama let me begin by thanking Prime Minister Chretien
    and the people of Halifax for welcoming Hillary and me and our
    delegation to Canada. Even on our short boat ride across the harbor, we
    could see why this city and indeed all of Nova Scotia are favorite
    sights for so many American tourists. I hope the important business we
    do here won't prevent us from enjoying a little of this very beautiful
    place.
        Our business began today with the meeting with Prime Minister
    Murayama, the third in the constructive dialog we began last November.
    Our discussion focused on the strength of the U.S.-Japan relationship,
    and we are determined to make it stronger still. Never have the ties
    between our nations been more important, and never have they been
    closer.
        Our two great democracies are also the world's largest economies.
    Together we make up more than 30 percent of the world's gross domestic
    product. And trade between our people is growing rapidly.
        Our security ties have never been closer. Friends and foes alike
    know the Japanese-American relationship is the most important force for
    peace and stability in the Asia-Pacific region. Every day our people
    work together on the vital challenges of our times, protecting the
    environment, responding to natural disasters, combating the deadly trade
    in illegal drugs, and fighting the terrorists who have threatened both
    our nations from abroad and from within.
        No issue is more important to our nations than stopping the spread
    of nuclear weapons. Prime Minister Murayama and I, along with our South
    Korean allies, have worked tirelessly on our strategy to stop the
    development of North Korea's nuclear program. We pledged to push forward
    with this week's important agreement to implement that strategy. Japan
    has agreed to make a significant contribution to the light-water
    reactors that will supply energy to the North Koreans without producing
    weapons-grade materials. And I thank the Prime Minister for Japan's
    ongoing commitment to the fight against weapons of mass destruction.
        The Prime Minister briefed me on plans for the upcoming meeting of
    the Asian-Pacific Economic Cooperation forum. APEC, as all of you know,
    has become an essential part of America's strategy for regional
    prosperity. Japan and the United States will work together so that
    November's meeting in Osaka sustains the momentum toward free and open
    trade in the Asia-Pacific region, achieved in Seattle and Indonesia last
    year.
        We also discussed our progress and our disagreements on trade.
    Fifteen times since the beginning of my administration, the United
    States and Japan have concluded agreements to open markets and increase
    trade across a wide variety of products and services. The latest,
    reached just this week, offers tax and financial incentives to Americans
    who want to establish on-the-ground operations in Japan. The Prime
    Minister and I also agreed to extend the 1993 framework on trade
    negotiations, and I am optimistic that that will advance both our
    interests in free and open trade. Once again, this proves that our
    countries can and do work together to solve our disputes and enable
    American companies to better compete in the Japanese market.
        But we also, as all of you know, have real differences. The Prime
    Minister and I discussed the problem of access for U.S. airline cargo
    car-

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    riers to the Japanese market, for example. I again expressed to the
    Prime Minister my concern that Japan honor rights that our carriers now
    have guaranteed under existing civil aviation agreements.
        On the difficult issue of autos and auto parts, we had a frank and
    open exchange of our views. We agreed that our negotiators should
    redouble their efforts to seek a solution to those differences when they
    meet in Geneva next week. But I made it clear that I am determined to
    carry through on my effort to open Japan's auto markets. Billions of
    dollars in American exports and thousands of American jobs are at stake.
    They depend upon our success.
        Opening these markets, as I have said repeatedly, will benefit not
    only the United States but Japanese consumers as well. I have instructed
    our negotiators to pursue every possible avenue of resolution before the
    June 28 deadline, and I remain hopeful that an acceptable, meaningful
    agreement can be reached. But if a solution cannot be found by the
    deadline, I will impose sanctions, and the United States will also
    pursue a case before the World Trade Organization.
        At times like these, it is tempting to focus only on the differences
    that bring our two nations to the negotiating table. But I ask you again
    not to lose sight of the broader truths of our relationship. Only
    decades after the end of the terrible war that pitted our people against
    each other, the United States and Japan are allies and share a profound
    commitment to democracy, security, and prosperity. Our common agenda
    embraces everything from the fight to preserve our global environment to
    the global fight against AIDS, promoting the cause of women in
    developing countries, now to working together on natural disasters like
    earthquakes and dealing with our common concerns after Oklahoma City and
    the terrible incident in the Japanese subway with terrorism and the
    proliferation of weapons of mass destruction.
        In any relationship as broad and deep as ours, there will always be
    differences. But the United States and Japan agree, no one issue, no one
    difference, will allow us to undermine our alliance or stop us from
    pursuing our shared goal and our common interests. Our two great
    democracies will never rest in our pursuit of a better, a safer, and a
    more prosperous future for all of our people.
        Mr. Prime Minister.
        Prime Minister Murayama. In my meeting with President Clinton for a
    couple of hours, until a while ago, I engaged in a candid exchange of
    views on the present and future of Japan-U.S. relations and the stance
    that we'll take as we go to the G-7 summit meeting. And I think the
    meeting was very meaningful.
        The Japan-U.S. relations have grown over the past 50 years, since
    the end of the Second World War, and are connected by a strong bond of
    cooperation and collaboration.
        President Clinton and I confirmed that security dialog is
    progressing smoothly. Thanks to the President's cooperation, the issue
    of U.S. military bases in Okinawa has seen important progress. And the
    response to North Korea's nuclear development issue, which seemed to
    test our bilateral collaboration, has produced important results, thanks
    to the solidarity of our two countries and the Republic of Korea, and it
    is a matter that we expressed appreciation for.
        Common agenda--that is to say, our cooperation from global
    perspectives--is a symbol of creative partnership between our two
    countries. We today received a joint report containing new areas of
    cooperation. And the President and I are of the view that such
    cooperation should be promoted further.
        As was mentioned earlier by the President, we also discussed the
    auto issue as well as the civil aviation issue. While the two countries
    remain apart on these issues, the President and I see eye to eye that we
    both will do our utmost to settle the issue as early as possible through
    the consultations slated for next week in Geneva. By the way, since the
    President has alluded to this matter, I should like to say that I asked
    for expeditious removal of the unilateral measures since they violate
    the rules and spirit of the World Trade Organization.
        Now, in connection with that, including the civil aviation issue, we
    both agree that Japan-U.S. relations are a bilateral relationship of
    vital importance, so much so that the auto issue and aviation issue
    should not be allowed to adversely affect the overall Japan-U.S.
    relations.
        We'll welcome President and Mrs. Clinton as state guests in
    November. Today's meeting with the President took place at a midpoint
    between my visit to Washington, DC, earlier, in January, and his visit
    to Japan in November. I am determined to further strengthen our
    bilateral partnership in the run up to the President's visit and beyond
    into the future.

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        Lastly, I proposed to the President to hold a bilateral symposium of
    seismologists on earthquakes, in order to enable the peoples of our two
    countries who have experienced the great Hanshin earthquake and the
    Northridge earthquake, respectively, make the most of their experiences
    and the lessons. And the President has agreed to the proposal.
        Thank you.

    Japan-U.S. Trade

        Q. Did you hear anything new today from Mr. Murayama to indicate a
    willingness to open Japan's auto markets, or was he inflexible? And
    also, was there anything that you heard from him that might lead you to
    extend the June 28th deadline?
        The President. The answer to the second question is, no. The answer
    to the first question is, we did not negotiate here, and we should not
    have. We had many other matters to discuss. We are both very ably
    represented by Ambassador Kantor and Minister Hashimoto and others on
    our behalf, and we have scheduled resumption of talks on the 22d and 23d
    in Geneva. So we did not discuss the details. But I did not and I will
    not agree to extend the deadline.

    North Korea

        Q. On the North Korean issue, up to the U.S.-North Korean agreement
    in Malaysia, I think there was some awkwardness in relations amongst
    Japan, Korea, and the United States. I wonder how the collaborative
    relationship will be kept up in the future? And how will Japan cooperate
    with this issue, including Japan's financial cooperation, and if a
    substantial payout is made, when will that be?
        Prime Minister Murayama. Well, on that question of North Korean
    nuclear development issue, as was mentioned, in fact, we did discuss a
    lot of things. The talks in Malaysia were a very difficult one, and the
    United States continued to negotiate tenaciously. And as a result, the
    U.S. and North Korea finally arrived at a joint press conference. And we
    very much--highly appreciate all those efforts and the result.
        Now, there may have been some misunderstanding amongst the parties
    in the process, but after overcoming those misunderstandings, we have
    had very close contacts between Japan and the United States as well, and
    we arrived at this agreement. So we would like to actively promote the
    outcome.
        What sort of burden shall we take? When will we come up with a
    conclusion? Those are matters that we'll have to work on and finalize in
    the days ahead. At any rate, on this matter, Japan and the United States
    at the end of the day will continue to maintain close cooperation and
    act in concert. There is an agreement on that.

    Japan-U.S. Trade

        Q. Mr. President, what if the June 28th action, the imposition of
    tariffs, were to ignite a trade war with Japan? Won't that do more to
    adversely impact the jobs and the exports that you're trying to protect
    in the first place, sir?
        The President. Well, of course, we hope that won't happen. But we've
    already considered the alternatives, and I believe we're on the right
    course.
        Q. Did you get any assurance from the Prime Minister as to what the
    Japanese response might be?
        The President. We did not discuss the details of the trade issue,
    other than to talk about the firmness of the June 28th deadline and our
    common hope and our common pledge that we could have a satisfactory
    resolution on the 22d and the 23d when our negotiators meet. And of
    course, the Prime Minister very ably restated his position, as he did
    here.
        Prime Minister Murayama. With regard to June 28th, we did hear
    remarks from the President, and so, in response, I said that the 28th of
    June, we understand, is a deadline set by Section 301, but that is a
    matter of U.S. domestic law. As far as Japan is concerned, the auto
    talks are not talks conducted under Section 301. That is the Japanese
    understanding, and I stated that clearly.
        What is important is that we do not engage in talks with both of our
    fists raised but rather talk to each other in good faith and try to
    resolve the problem through talks and let us work on that. And
    fortunately, on the 22d and 23d of June, there will be some Cabinet
    level talks in Geneva. And through those talks, we hope that we'll be
    able to come up with a solution that will be convincing to the
    international public opinion as well. And so let us do our utmost.
        Q. I'd like to ask the same question to both of you on the auto
    issue. Does that mean that each side will step one head ahead of the
    positions that you've stuck to so far? I wonder if

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    you've engaged in discussions with that sort of feeling or intention to
    make a step forward.
        Prime Minister Murayama. Well, these are talks, consultations. So if
    both sides remain stuck into their principles, there will be no talks.
    We certainly have to keep our eye on overall flows or developments and
    try to walk closer to each other. Otherwise, there will be no solution.
    So where we can yield, we should yield to each other, so that we should
    find out the ways that will lead us at the end of the day to a solution.
    And let us find a way to do that. That is something that we've agreed
    on.
        The President. I have nothing to add to what the Prime Minister
    said. As you know, the objective of the United States is to open the
    market, to be free to compete. But it would have been inappropriate for
    us to engage in the details of the discussion. As I said before, we have
    both been very ably represented by people who have dealt with this issue
    for a long time. And so we reasserted the framework from which we are
    both proceeding, which I have stated and which he has stated. We did not
    negotiate the details of the agreement.
        Q. Mr. President, you said in your opening statement that the
    security relationship between the United States and Japan has never been
    stronger. But administration officials have said that frictions on trade
    could eventually lead to a deterioration of that relationship. What is
    your read of that? If this isn't solved----
        The President. That is exactly why both the Prime Minister and I
    today said that we have made a common commitment not to allow our entire
    relationship to be defined by a trade difference. Even in the area of
    trade, we've made 15 agreements in 2\1/2\ years. That's pretty
    impressive. Even though the autos and auto parts are a bigger part of
    our economy, a bigger part of their economy, and a bigger part of the
    trade imbalance than all these other things combined, they are still
    significant.
        And in other areas--what Japan and South Korea and the United States
    are doing with the North Korean nuclear problem is a matter of profound
    importance to every Japanese citizen, every American citizen, and all
    the people who live in North Asia. The things that we can do together to
    deal with problems like biological and chemical weapons being used in
    terrorist attacks--we are both more vulnerable to that as we open our
    societies to the 21st century--to organized forces of destruction.
        The responsibilities we both have to the rest of the world to try to
    lead in environmental protection, in the fight against AIDS, and many
    other areas, these matters make it imperative that we maintain the
    closeness of our relationship. And we have pledged to each other today
    that however difficult our differences get in one area or the other of
    this relationship, we will not let it destroy the bonds of friendship
    and common values that are imperative for not only the American and the
    Japanese people but for the entire world.
        Prime Minister Murayama. The President has said it all, so I really
    don't have anything to add. But this cooperation based on Japan-U.S.
    relationship will contribute not only to the Asian economy but
    contributes very importantly to the world economy as well. So that is
    our common understanding. It is from that vantage point that we engage
    in cooperation on issues of global scale which we have referred to. So
    we both have reaffirmed that we will continue cooperation in those areas
    as well.
        Q. Once again, on the auto issue, in the series of Japan-U.S. auto
    issues, you are far apart on one single issue, and that is whether the
    volunteer purchases should be increased or not. I wonder if the Clinton
    administration plans to continue to stick on that position, and would
    the Murayama administration continue to refuse? If so, I think agreement
    or compromise will be very difficult. I wonder how you intend to settle
    the problem, with emphasis on this one point of auto purchase plan?
        Prime Minister Murayama. As the President mentioned earlier, in our
    talks today we did not go into details of those talks because, as the
    President mentioned, we have outstanding negotiators, and on the 22d and
    23d, there will be further talks in Geneva on that issue. And including
    that aspect, I hope that there will be in-depth discussions in Geneva
    and somehow we'll be able to come up with a force that will lead us to
    the settlement of the issue through talks. So let us both make efforts
    to that end.
        The President. You have identified by your question one of the very
    key issues in the negotiations. Any answer that we give will undermine
    the possibility that a successful negotiation can occur.
        Thank you very much.

    [At this point, the President was presented with a plaque from the
    children of the Kobe area

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    in Japan in appreciation of U.S. assistance after the Hanshin
    earthquake.]

        The President. We'll hang this in the White House as a constant
    reminder about this.

    Note: The President's 98th news conference began at 4:40 p.m. at
    Dalhousie University. Prime Minister Murayama spoke in Japanese, and his
    remarks were translated by an interpreter. In his remarks, the President
    referred to Minister of International Trade and Industry Ryutaro
    Hashimoto of Japan.