    [Public Papers of the Presidents of the United States: William J. Clinton (1998, Book I)]
    [June 9, 1998]
    [Pages 916-922]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's News Conference With President Kim of South Korea
    June 9, 1998

        President Clinton. Good afternoon. President Kim, members of the
    Korean delegation, let me first say again what a privilege it has been
    to welcome President Kim back to the United States and here to the White
    House. His remarkable life history reminds us that from Seoul to its
    sister city, San Francisco, people everywhere share the same aspirations
    for freedom, for peace, for the opportunity of prosperity.
        President Kim once wrote from his prison cell, ``If winter comes,
    can spring be far behind?'' This morning I reaffirmed to President Kim
    our deep confidence in his efforts to reform the Korean economy,
    liberalize trade and investment, strengthen the banking system, and
    implement the IMF program. As he has said on many occasions, open
    markets and open democracies reinforced one another. The United States
    will continue our strong support for Korea's reform efforts. In this
    context, I reaffirmed our commitment to provide bilateral finance if
    needed under appropriate conditions.
        We also discussed a number of concrete steps to promote growth in
    both our countries. We explored ways to more fully open markets and to
    further integrate the Republic of Korea into the global economy,
    including new discussions on a bilateral investment treaty. We signed an
    Open Skies agreement which permits unrestricted air service between and
    beyond our countries. I expressed my appreciation for the decision by
    Korean Airlines to purchase over $1 billion worth of Boeing airplanes.
    And I'm pleased to announce that the Overseas Private Investment
    Corporation has determined that Korea is again eligible for OPIC
    programs, in response to recent steps taken to protect worker rights.
        We also discussed the situation on the Korean Peninsula and
    reaffirmed the importance of our strong defense alliance. Korea is a
    safer place today than it was 5 years ago, with a reduced nuclear threat
    and improved dialog between North and South. The United States applauds

    [[Page 917]]

    President Kim's efforts toward reconciliation. Now we hope North Korea
    will respond further to President Kim's gestures and that the four-party
    talks will soon resume, because we think they also can make a crucial
    contribution to progress.
        I am pleased that yesterday, for the very first time, the United
    Nations command and the North Korean military reached an agreement to
    hold general officer talks designed to resolve and prevent armistice-
    related problems along the DMZ. On specific matters, I thanked President
    Kim for his commitment to provide peaceful sources of energy to North
    Korea, and I repeated our determination to resolve problems over funding
    heavy fuel oil for North Korea as part of our agreement, reached in
    1994, to freeze its nuclear program.
        We will continue to provide food and humanitarian assistance and
    urge our allies to do the same. And we pledge never to give up the
    search for missing Americans.
        President Kim and I discussed and shared concerns about the nuclear
    tests by India and Pakistan. Korea has lived with the threat of war for
    nearly five decades. The last thing the people of Asia need now is a
    nuclear arms race. South Korea has set a shining example for
    nonproliferation by abandoning nuclear weapons, accepting safeguards,
    and developing a peaceful nuclear program that brings benefits to the
    region.
        And the Korean people have demonstrated the universality of
    democratic aspirations, bringing a springtime of hope and encouragement
    to advocates for greater freedoms throughout Asia.
        Over the last half century, America has been blessed by the presence
    of Korean-Americans and Korean students living and learning with us.
    Soon we will be offering new work-study benefits that will allow Korean
    students here in the United States to support themselves while in
    school.
        Mr. President, your example reminds Americans what is very precious
    about our own democracy. I thank you for your visit. I thank you for
    your lifetime of commitment. When I go to Asia in 2 weeks, I will do so
    with a firm faith in the future of a dynamic and democratic part of the
    world, in no small measure because of your life and your triumphs.
        Thank you.
        President Kim. Today I had my first meeting with President Clinton
    since my Inauguration. We engaged in a broad exchange of views on the
    situation on the Korean Peninsula and in Northeast Asia as a whole.
        At the time of President Clinton's first Inauguration, the United
    States faced a difficult economic situation. In the 5 years since then,
    President Clinton has transformed the American economy into the world's
    most competitive, producing new jobs, reducing unemployment, and
    achieving a balanced budget. President Clinton has also been unsparing
    in his efforts to maintain world peace, from Bosnia to Haiti, and to
    promote greater respect for human rights and democracy.
        I attach great significance to my first summit meeting with a leader
    of such outstanding ability. In this meeting, President Clinton and I
    agreed to develop Korean-American relations to a higher level of
    partnership for the 21st century. We also agreed to work together to
    promote the security and prosperity not only of the Korean Peninsula but
    of the entire Asia-Pacific region, as well as the development of
    democracy in Asia on the basis of our shared values of democracy and
    market economy.
        President Clinton and I are strongly of the view that close Korean-
    American relations are based above all on our security alliance for the
    preservation of peace on the Korean Peninsula. I explained my new
    administration's engagement policy toward North Korea and asked for the
    United States support and cooperation. President Clinton assured me of
    his full support and cooperation in this regard.
        We agreed to further consider ways of promoting reconciliation and
    cooperation and the building of a lasting peace regime on the Korean
    Peninsula through the pursuit of the four-party peace talks and South-
    North dialog in a parallel and complementary matter. President Clinton
    and I agreed that progress in South-North relations and the improvement
    of U.S.-North Korean relations should be promoted in harmony. We also
    shared the view that the light-water reactor project in North Korea
    contributes to nuclear nonproliferation efforts on the Korean Peninsula
    and in the world as a whole, as well as to the strengthening of peace
    and security in Northeast Asia. We thus agreed to continue to cooperate
    closely to promote the project.
        President Clinton and I also held in-depth discussions on the
    measures to overcome the

    [[Page 918]]

    current economic crisis facing our nation. I expressed my gratitude for
    the timely assistance of the United States during our foreign exchange
    crisis. I explained the results of our efforts to stabilize the
    financial sector and reconfirmed our resolve for continued reforms. I
    explained the efforts of our Government to promote active and bold
    opening to induce foreign investments, and to institutionalize these
    efforts, we agreed to work out a bilateral investment treaty.
        I also explained that for an early resolution of the economic crisis
    Korea needs increased investment and financial cooperation, and asked
    that the United States take a leading role in the assistance for our
    efforts to overcome the economic crisis.
        President Clinton welcomed our efforts to overcome the financial
    crisis, including the economic reform measures. He said that our
    overcoming the economic crisis will have a positive effect on the
    resolution of the economic crisis in Asia and is in the interest of the
    United States, and that the United States will be unsparing in rendering
    all possible assistance.
        President Clinton and I both strongly feel that the IMF, IBRD, and
    ADB have played important roles in enabling Korea to overcome the
    economic crisis. President Clinton and I also share the view that all
    economic trade issues between our two countries should be resolved in a
    mutually beneficial and amicable way through dialog and consultation,
    and agreed to work together toward that end.
        Thank you.
        President Clinton. Thank you very much. Now we will alternate
    questions. I will call on a member of the American press corps, and then
    President Kim will call on a member of the Korean press corps. And we'll
    begin with Helen [Helen Thomas, United Press International].

    Sanctions Against North Korea

        Q. I have a question for each President. President Clinton, is the
    United States ready to lift sanctions against North Korea as proposed by
    President Kim?
        President Kim, when will American troops be able to come home from
    the DMZ?
        President Clinton. You're two for two there. First let me say that
    we discussed this matter in real candor. President Kim did not ask me to
    lift sanctions. What he asked me to do was to work with him to support a
    policy of reciprocity which would enable us to move forward with the
    reconciliation of the North and the South. And I said that I would be
    prepared to do that.
        As you know, with regard to the specific sanctions, there are
    basically three categories of sanctions the United States has with
    regard to North Korea. At least one and perhaps two whole categories
    would require, in my view, some legislative change to be modified. But
    there is some executive flexibility here. What I told President Kim I
    would do is to work with him. I am encouraged at the bold vision and the
    confidence that he brings to this, and the genuine concern for the
    welfare of people in both nations. And I think that his initiatives,
    plus what we can do in the four-party talks with some issues that
    properly belong there, can really lead us to some progress here in the
    next few months and years. So I'm very hopeful.
        President Kim. I do not intend to say anything that would interfere
    with American policymaking, but I do wish to say that our new government
    will approach the North Koreans based upon a strong security alliance
    with the United States but with flexibility and to forge an atmosphere
    in which we can induce the North Koreans to open up, to encourage the
    moderate elements in North Korea.
        We have nothing to fear from North Korea. To induce them to open up
    will be beneficial to the interests of our two countries, but to the
    peace of the Peninsula and Northeast Asia in general. Thus, if the
    United States should ease sanctions against North Korea, the when and
    how and the content would be a decision for the American Government to
    make, but we would not oppose and we would cooperate.

    Assistance to North Korea

        Q. A question to Mr. Clinton, President Clinton. According to the
    Geneva agreement, the United States is to provide crude oil to the
    North, and South Korea plays a central role in providing the light-water
    nuclear reactors, but I understand the American Government has requested
    our Government to share some of the costs of the crude oil being
    provided to North Korea. What is your position now?
        President Clinton. The North Koreans, as you probably know, have
    asked for the provision of crude oil and more under the agreement. And
    in the last few--several days, I have been able to invoke some
    provisions of American law

    [[Page 919]]

    which will permit me to fulfill our commitment there. Once we fulfill
    our commitment there, then we have to see where we are with the North
    Koreans and whether others will have to do more.
        But you're correct, the most important thing that President Kim can
    do is to reaffirm the commitment of South Korea to fund 70 percent of
    the light-water reactor, which he has done. And so I believe he has
    fulfilled his commitment, and I think I'm now quite confident that I
    will be able to fulfill America's commitment under this agreement.
        Terry [Terence Hunt, Associated Press].

    Tobacco Legislation

        Q. Mr. President, the tobacco bill appears on the verge of collapse
    in the Senate. Today the Senate rejected an attempt to force a vote on
    the bill. Would you accept a limited measure to reduce teen smoking and
    at the same time meet Republican objections that the McCain bill taxes
    too much and spends too much?
        President Clinton. Well, first of all, I don't agree with that. I
    think it's clear that one of the things that will lead to a reduction in
    teen smoking is making cigarettes more expensive. And secondly, it's
    clear that we need to raise some funds to help States and the Federal
    Government defray the costs of paying for health bills related to
    smoking and to do the necessary medical research and to have the
    antismoking programs.
        Now, having said that, it's my information--and yours may be more up
    to date than mine--but I did talk to Senator Lott
    and Senator Daschle this afternoon, and
    we're working hard to get this thing back on track and get into a
    position where a good comprehensive bill can pass the Senate. And as of
    just a few minutes before I came over here, I think there may be some
    developments this afternoon and this evening which will make that
    possible. And so I'm just going to hang on and hope for the best and
    keep working at this.
        Q. What are those developments?
        President Clinton. Well, we'll see, we'll see. We're working on it.
    But I do believe that the possibility of getting a comprehensive bill
    out of the Senate is greater now than it was this morning. There are
    still problems, to be sure, but we're getting closer to, I think, a
    principled compromise. I hope we are.
        President Kim, would you like to call on someone?

    Four-Party Talks

        Q. The two of you have said that you will pursue the four-party
    talks and enter Korean dialog in harmony. Do you recognize Korea's
    leading role in this process?
        President Clinton. [Inaudible]--the difficulties on the Korean
    Peninsula, and I think when there is movement, as there is now, being
    led by the Korean President, the United States should do all in its
    power to support that movement. That is what we have tried to do in
    other parts of the world. That is the sort of thing that led to a
    successful conclusion recently to the Irish peace process, with a vote
    of the people in Northern Ireland and Ireland.
        I do think there are some discrete issues which, because of the
    terms of the armistice, can perhaps best be handled in the four-party
    talks. But the lead in all this should be the lead taken in the
    resolution by the parties themselves, between North and South Korea. And
    we will do what we can to support President Kim in that regard and to
    support the North Koreans insofar as they respond in a positive way.
        Would you like to answer, Mr. President?
        President Kim. As President Clinton has said, I agree entirely. The
    nonaggression, arms reduction, these should be dealt with in the four-
    party talks. As for inter-Korean exchanges and cooperation, that should
    be dealt with in the bilateral inter-Korean dialog. The bilateral talks
    can be taken within the four-party framework or outside of that.

    Situation in North Korea

        Q. Mr. President--actually for both of you gentlemen. I wonder if
    you could give us your assessment of the situation in North Korea and
    just how dangerous the food shortages there make it, and also if the two
    of you could share your thoughts about the leader of North Korea, Kim
    Chong-il, who has remained kind of a mystery to much of the world. Do
    you feel he's someone who can be trusted?
        President Kim. First of all, regarding Kim Chong-il, I don't think
    anybody knows well enough about him. Based upon our experience, it's
    very difficult to say that you can trust a Communist. But we feel the
    need to negotiate

    [[Page 920]]

    and, once you've reached an agreement, to hold them up to that
    agreement.
        The North Korean regime at present is faced with many difficulties
    still. It is relatively stable, and I don't think it is going to
    collapse all that easily. But of course, the food situation, the overall
    economic situation is very bad. Normally, you could say that you cannot
    continue a regime based on such a difficult economic situation, but our
    intent is to persuade North Korea, to make it feel safe in opening up
    and so that it can resuscitate itself, follow the model set by China and
    Vietnam, and so that it can overcome such a hard situation at present.
        If it remains in such a hard situation, it may decide to go the road
    of military provocation, or if it stays the course, it may simply
    collapse and that will fall on our lap. So, for peace, for stability on
    the Korean Peninsula, we need to induce North Korea to open up and to
    regain the strength to live and grow on its own. And we have to help it
    in doing so.
        President Clinton. I agree with President Kim's assessment of the
    leadership in North Korea. Let me just say, with
    regard to the food situation, it is serious, and we are concerned about
    it. The United States and South Korea have led the way in providing food
    to North Korea. And I'm actually quite concerned that the U.N. appeal
    which goes out periodically has not--to other countries--has not been
    fulfilled. And so I would hope that other countries that could also make
    a contribution, that typically have when the U.N. has made such appeals,
    will do so. I think we have to do whatever we can to avoid severe
    malnutrition or worse.
        But ultimately, the answer is not an annual food appeal. Ultimately,
    the answer is structural change in North Korea that would permit them to
    feed themselves and to purchase whatever foodstuffs they need from
    beyond their borders that they cannot grow. And that, I think, requires
    a positive response to President Kim's outreach, a rapprochement, a
    beginning of a resolution and, as he said, an opening up.
        It was very interesting--I never heard anyone say it quite this way
    before--President Kim said to me this morning that if China can begin to
    open up and Vietnam can begin to open up and they can have very good
    results from doing so, then it's predictable that North Korea would get
    the same kind of good results if they would take the same path.

    Korean Peninsula Energy Development Organization/Economic Assistance

        Q. Regarding KEDO and the sharing of the cost, 90 percent for Japan
    and Korea; the remaining 10 percent is the problem. Korea has asked
    America to share that 10 percent. The other question is on economic
    cooperation. You agreed on an investment treaty, and you promised
    continued assistance and economic cooperation. Have there been other
    concrete pledges of assistance regarding the Korean economic situation?
        President Clinton. Well, of course, we were very involved in the
    early assistance to Korea, and we have an emergency commitment should it
    be needed. My belief is that it will not be needed, because I think your
    country will do quite well now. In addition to that, I committed today
    to ask the Secretary of Commerce, Mr. Daley, to organize a trade and investment mission to Korea as
    soon as it can practically be carried out. And we will continue to do
    that.
        With regard to KEDO, we have actively worked not only to secure
    funding to implement the accord we made with North Korea to suspend its
    nuclear program in all of its aspects but also to make sure the United
    States gave as much as we reasonably could. And this is a conversation
    that I hope President Kim will also be able to have with the leaders of
    the Congress, because I think there is a great deal of support for him
    in our Congress, even though there has been from time to time lukewarm
    support for KEDO. And I think many of our Members of Congress wrongly
    have viewed KEDO as something we were doing for North Korea instead of
    something we were doing for the stability of the Korean Peninsula, the
    safety and security of our allies and friends in South Korea, and for
    the cause of defusing nuclear tensions everywhere.
        In the wake of these nuclear tests in India and Pakistan, I would
    think everyone all over the world would feel a bigger interest in seeing
    the agreement with North Korea be fully implemented.
        Wolf [Wolf Blitzer, CNN].

    China

        Q. Mr. President, a two-part question on your policy toward China.
    The first part is there is a broad range of human rights activists, from
    Gary Bauer on the right to Kerry/Kennedy/

    [[Page 921]]

    Cuomo on the left, who have appealed to you to avoid a visit to
    Tiananmen Square during your upcoming visit to China. Will you go to
    Tiananmen Square, as some of your advisers say you must, given the
    protocol of the Chinese Government?
        And the second part of the question is, why did you resist the
    advice of the Justice Department last February and give Loral a license
    to export another satellite to be launched on a Chinese missile, even
    while the Justice Department was in the midst of a criminal
    investigation of Loral for allegedly providing technology information to
    China?
        President Clinton. Well, let me answer the questions in reverse
    order. I didn't resist the advice of the Justice Department. I took the
    advice of the National Security Council, the Defense Department, the
    State Department, and the Arms Control and Disarmament Agency. The
    statute gives the State Department the responsibility to make a
    recommendation, and then gets the opportunity--the Defense Department
    and the Arms Control and Disarmament Agency are given the opportunity to
    concur. The National Security Council also gave the Justice Department
    the opportunity to make whatever comments they wanted, evaluated all
    that, and concluded that I should approve the satellite. It was sent to
    me in a decision memo which I approved.
        And as you have seen from the practice in previous administrations
    and from all the evidence, it was, from my point of view, a pretty
    routine decision that I thought, on balance, if all those agencies felt
    that it was the right thing to do and it furthered our national
    interests, that I would do so.
        Now, in terms of the trip to China, my own view is that if this is
    going to be a state visit to China and I am going to be the guest of the
    Chinese, that they should be designing the terms of the arrival
    ceremony, not me. I simply don't accept the proposition that observing
    their diplomatic protocol in any way undermines my capacity to advance
    the principles of the United States.
        I appreciated the encouragement reflected in the ad I saw in the
    paper from a rather wide array of people, with the letter from Billy
    Graham and the statement from the Dalai
    Lama. President Kim and I talked about it today. I
    think in view of the--again I would say, in view of the recent economic
    events in Asia and the nuclear tests on the Indian subcontinent, it
    should be clearer than ever before that we have a strong national
    interest in developing a constructive, positive relationship with China.
        Because of that relationship, I think it has been made more likely
    that political dissent would be more respected. Several political
    dissidents have been released from imprisonment since President
    Jiang came here. And I intend to make our views
    clear and unambiguous. But I think that what Americans should want me to
    do is to make sure that I am as effective as possible not only in
    advancing our interests but in standing up for our values. And I'm going
    to do what I think is likely in the short run and over the long run to
    make our country the most effective.

    South Korean Social and Economic Policy

        Q. [Inaudible]--increase of social vulnerables and thus it is very
    natural for Korean Government to try to use their own budget to help the
    social vulnerables. Having said that, one-third--roughly one-third of
    Korean budget is devoted to defense budget. And I want to know, are you
    in favor of an idea that we use the defense budget, to use that money to
    help the social problems?
        And just one more question. I believe you have said that you have
    talked with President Kim to promote economic growth better, so what
    would be special measure to promote economic growth? Do you think that
    Korea might need a kind of Korean version of New Deal plan to promote
    economic growth, that Korea might need a kind of--[inaudible]--to
    stimulate Korean economy?
        President Clinton. Let me try to answer both questions, and if I
    might, I'd like to answer the second question first.
        Your country has had a remarkable record of economic growth by any
    standard over the last few decades. I believe what has happened here is
    a bump in the road, if you stay with the necessary reforms to reach the
    next level of development. All the evidence we have, not just concerning
    Korea but even concerning the United States and then countries that have
    a far smaller per capita income than Korea, is that no Government
    program can offset the flight of investment capital out of a country.
    And whether anyone likes it or not, all this money can move around the
    Earth in a matter

    [[Page 922]]

    of seconds. Therefore, I believe that the best social policy for Korea
    right now is an economic policy that will restore real growth as soon as
    possible. That is what will drive down unemployment. It will drive up
    family incomes. It will help families stay together and take care of
    older family members and do all the things that make a society a good
    society.
        If I could do anything in the world for Korea just as a magician, if
    I were dictator of the world, I would restore high growth rates to your
    country tomorrow, and then the Korean people themselves would work
    through these problems in no time.
        So that brings me to the next point. I think, therefore, that the
    most important thing I can do as the United States President and the
    friend of Korea is to restore the Overseas Private Investment
    Corporation guarantees for financing, to make sure that you know there
    will be emergency support in the event you need it--that will make it
    less likely that you will need it; to get this investment mission going
    to your country; and to do anything else I can to try to support growth.
        Now, your first question. I have to answer that the way President
    Kim answered the first question to me. That is, no President of one
    country can make a judgment about the national security needs of another
    country. But I will say this: Obviously, if the security situation in
    Korea improves to the point that you can reduce defense spending as a
    percentage of overall spending, that frees up investment for the other
    human needs of the country to build a stronger social contract.
        However, security always comes first. Therefore, as an outsider I
    would say what President Kim is doing, in showing the vision and the
    confidence in your people to reach out to North Korea and encourage them
    to change and encourage a reduction in tensions, is the path most likely
    to change the security reality. As the security reality changes, then
    you can change the security budget. But the budget must follow the
    reality. And I think he's doing that.
        Again, I would encourage the leader of North Korea and all those in
    influence there to respond to his farsighted overtures, and let's get
    this show on the road, as we say in America.
        Thank you very much.

    Kosovo

        Q. Kosovo, sir? [Inaudible]--that situation?
        President Clinton. If I could say one word about Kosovo----
        Q. Whether U.S. forces might be needed?
        President Clinton. Well, I have authorized and approved accelerated
    NATO planning. And we are supporting and working with the British to get
    the strongest possible resolution through the United Nations. We're
    still trying to work out the wording of the resolution, but we have no
    dispute over the phrase that you have focused on, which is to use all
    necessary means to try to avoid ethnic cleansing and the loss of human
    life.
        Let me say, all of you know that this is a very thorny problem, and
    while we're all worried about--deeply worried about seeing a repeat of
    what happened in Bosnia, we know there are some factual and legal
    differences between the two entities. But the main thing is that I am
    determined to do all that I can to stop a repeat of the human carnage in
    Bosnia and the ethnic cleansing. And I have authorized, and I am
    supporting, an accelerated planning process for NATO. And as I believe
    both the Secretary of State and the Secretary of Defense said yesterday,
    we have explicitly said that we do not believe any options should be
    taken off the table.
        Thank you.

    Note: The President's 160th news conference began at 3:40 p.m. in Room
    450 of the Old Executive Office Building. President Kim spoke in Korean,
    and his remarks were translated by an interpreter. In his remarks, the
    President referred to evangelist Rev. Billy Graham; and President Jiang
    Zemin of China.