    [Public Papers of the Presidents of the United States: William J. Clinton (1996, Book I)]
    [February 23, 1996]
    [Pages 322-324]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Exchange With Reporters Prior to Discussions With Prime Minister
    Ryutaro Hashimoto of Japan in Santa Monica, California
    February 23, 1996

    Trade Policy

        Q. Mr. President, does it help or hurt matters if trade policy is a
    campaign issue this year?
        The President. I think it should be an issue. I think it's important
    that the American people know all the facts and make their decisions.
    But let me reiterate what I said today, and let me begin by saying it's
    a great honor for me to welcome Prime Minister Hashimoto here to the
    United States. We know him well and respect and admire him for his work
    on trade on behalf of his country. And now this is his first trip here
    as Prime Minister. This will be a good opportunity for us to get better
    acquainted before I go to Japan on my state visit in April.
        Let me also say that we have a broad and deep friendship with Japan
    which encompasses far more than trade. We have a security partnership
    that has enabled us to work together to head off the North Korea nuclear
    threat, something which was an immediate threat to the

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    security of both the United States and Japan. And we have worked
    together on issues ranging from terrorism to drug trafficking to global
    environmental problems.
        Now, on the trade issue let me say as I have said many times, I
    don't mind if this is an issue in the election, but it's important that
    we look at the facts and the real policy alternatives. To hear the
    debate you would think the only choice is an open market without regard
    to how other countries treat our products on the one hand, or a totally
    closed market on the other. There is another alternative which is trade
    that is both freer and fairer, and that is the policy we have pursued.
        With Japan, thanks to Prime Minister Hashimoto in his previous
    position, we have concluded 20 trade agreements. And in those areas, our
    trade with Japan has gone up 80 percent in just 3 years in ways that
    have enabled us to lower the trade deficit and to provide a broader
    range of products and services to Japanese citizens, sometimes at lower
    cost. So this has benefited both of us. There are 167,000 more Americans
    working today because of those 20 trade agreements and the good-faith
    effort that has been made in Japan to keep them. And in general,
    American exports are now growing faster than American imports for the
    first time in many years.
        So I think we should all remember that this trade is a two-way
    street. When we raise barriers to others, they can also raise barriers
    to us. The goal should be freer trade and fairer trade, and that is one
    but only one part of our relationship.
        This is good for America. And here in California it's certainly
    good. You were with me today, all of you, at the McDonnell Douglas plant
    where they were celebrating, among other things, the sales of their
    planes to Saudi Arabia.
        Q. Is it possible to resolve trade differences without confrontation
    in the future?
        The President. The answer to that I think depends, frankly, on how
    well all of us can make the new World Trade Organization work. The real
    problem with international trade dispute resolution in the past has been
    that it took so long, by the time you got an answer it almost didn't
    matter what the answer was.
        So that's why the United States and Japan and other countries have
    held back the right to make some unilateral decisions in the trade area.
    But I think all of us would rather take this out of confrontation and
    have these matters fairly resolved. And the real question I think is
    going to be whether the WTO can move not only fairly but quickly.

    Japan-U.S. Relations

        Q. Mr. Prime Minister, Mr. Buchanan has said that you will be more
    scared of him as President than of President Clinton. What do you think
    of that? And Mr. President, your own assessment?
        Prime Minister Hashimoto. Concerning the election, that's a decision
    the American people have to make. We learn from the United States how
    important the free trading system is, and also we are promoting further
    the free trade principles. And also, we're making concrete actions for
    the elimination of regulation--or deregulation that are necessary for
    the goal of free trade. So I'm confident that the American people will
    make good decisions.
        I'm not taking any side, I must say.
        The President. Let me say, I would hope that the Japanese Prime
    Minister would never be afraid of any American President. We have a
    partnership.
        You know, let's just remember, when I became President the
    newspapers in America were full of the threat of North Korea becoming a
    nuclear power and posing dangers to Japan, to the United States,
    everyone. Because we worked with Japan and with South Korea and with
    other countries, that threat is ebbing away. The Japanese play host
    today to over 40,000 American soldiers that have helped to keep the
    peace in the Asian-Pacific region, and they pay a higher percentage of
    the cost of maintaining those military installations than any other
    nation in the world where we have soldiers deployed. Our relationship
    should be one of respect and friendship, even when we have different
    opinions and different interests. It is not based on fear. It is based
    on respect and friendship.
        Now, we've had trade disputes. All I ask you to do is to look at the
    record that we have established: 20 agreements, an 80 percent increase
    in American exports under those agreements, from auto parts to medical
    equipment to telecommunications equipment to California rice.
        There have been problems. We have taken these issues seriously, far
    more seriously than previous American administrations. But we have not
    attempted to approach them in an atmos-

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    phere that was based on fear or anger or rancor. We can be firm with
    each other, strong with each other; we can even disagree with each
    other. But the American people should know that our friendship and
    partnership with the Japanese in security matters is an important part
    of maintaining freedom and peace in the world and helps America. And
    Japan has lowered its trade deficit with America--or, our trade deficit
    with them--dramatically in the last 3 years. We are moving in the right
    direction. Other countries should do as well.

    Japanese Whaling

        Q. Any hope for progress on whaling? Is there any hope for progress
    on the issue of whaling that's separating the two?
        Prime Minister Hashimoto. Shall we finish the meeting right out
    here? [Laughter]
        The President. We just started--[laughter]--we haven't started.
        Thank you very much.

    Note: The exchange began at 7 p.m. in the garden at the Sheraton Miramar
    Hotel. A tape was not available for verification of the content of this
    exchange.