    [Public Papers of the Presidents of the United States: William J. Clinton (1999, Book I)]
    [May 3, 1999]
    [Pages 671-680]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's News Conference With Prime Minister Keizo Obuchi of Japan
    May 3, 1999

        President Clinton. Good afternoon. Please be seated. It is a great
    honor to welcome my friend and a friend of the American people, Prime
    Minister Obuchi, to Washington. I want to say a few words about our
    meeting today, but first let me say how very pleased I am that our
    three servicemen are coming home
    from Serbia, and to express my thanks to Reverend Jackson and his entire delegation for their hard work in
    securing their freedom.
        While we are very thankful for their release, let me be clear why
    the military operations must continue. Three Americans are home. Their
    families, their friends, and the American people whom they have served
    faithfully must be grateful. But nearly 1\1/2\ million Kosovars are not
    home. In fact, 2 days ago, as our prayers for our soldiers were being
    answered, Serbian soldiers were entering the Kosovar town of Prizren,
    going door to door, ordering everyone to leave or be killed. In a few
    hours, all 10,000 who lived there were forced to flee. When will these
    people see their homes again, with the safety and rights Mr.
    Milosevic has often pledged but never
    delivered?
        Remember, what is going on in Kosovo is part of a decade-long policy
    of ethnic and religious subjugation and cleansing, involving expulsion,
    destruction of records and symbols of history and culture, and
    ultimately, rape and murder.

    [[Page 672]]

        Our conditions for ending the bombing are not complicated. The
    Kosovars must be able to go home with security and self-government.
    Serbian security forces must leave Kosovo. An international security
    force must deploy with the power not just to monitor but to protect all
    the people of Kosovo, Albanians and Serbs alike. Our air campaign cannot
    stop until Mr. Milosevic shows he is
    ready to end the nightmare for the people of Kosovo.
        I want to thank Prime Minister Obuchi for Japan's strong support of
    our efforts in Kosovo and for its contribution of $200 million to aid
    the Kosovar refugees and to help them rebuild. All freedom-loving people
    are grateful to Japan for this generosity.
        Underlying this act and, indeed, all the policies we discussed today
    are two basic facts: First, the United States and Japan have common
    ideals, common interests, a common purpose in the world. Second, as the
    world's two largest industrial democracies, with less than 10 percent of
    the world's people, we produce about 40 percent of the world's wealth.
    We have unique responsibilities. We discussed them today, beginning with
    our security alliance.
        We in America are gratified that the lower house of Japan's Diet now
    has approved a new set of U.S.-Japan defense guidelines to allow us to
    respond with flexibility and speed to any regional crisis in Asia.
        We spoke about North Korea and the concerns we share about its
    missile and nuclear programs. We're grateful for Japan's continued
    support for the Korean Energy Development Organization, which is
    critical to our effort to diminish the threat of proliferation on the
    Korean Peninsula.
        We spoke about the difficult but profoundly important transition to
    democracy in Indonesia. Our countries have pledged around $30 million
    each to support elections there in June. We applaud President
    Habibie's commitment to give the people of East
    Timor a free choice in determining their future. We should support a
    meaningful U.N. presence in East Timor so its people can make their
    choice in safety and peace.
        Finally, we had a good discussion about Japan's economic situation
    and its strong efforts to build a stable, growing economy for the next
    century. I want to commend the Prime Minister for taking a number of
    very strong steps to restructure Japan's banking system and stimulate
    its economy.
        No one should underestimate the challenges the Prime Minister is
    facing. The Japanese people are going through a period of wrenching
    change. This dislocation, however, is not the result of reform; it is
    the reason reform is necessary. All of us have to change. And we also
    respect the deep desire of the leaders and the people of Japan to go
    through this change in a way that leaves no one behind and brings their
    people closer together.
        Until lasting recovery is at hand, we hope Japan will use all
    available tools to restore solid growth. I'm very pleased that we have
    reached agreement under which Japan will take steps to deregulate and to
    open its medical device, pharmaceutical, telecommunications, housing,
    and energy sectors, as well as agreements to enhance antitrust
    cooperation between our countries and make it easier for foreign
    companies to invest in Japan. We agreed today to work toward a third
    deregulation report by the end of March next year.
        We must also fully implement our trade agreements, including
    critical sectors such as insurance, flat glass, government procurement,
    autos, and auto parts.
        On the profoundly important issue of steel, we have made progress.
    But I reiterated that we will take action if steel imports do not return
    to their pre-crisis levels on a consistent basis. Playing by the rules
    of trade is the best way to sustain a consensus for open trade. I have
    fought for both objectives. It will help Japan adapt to the challenges
    of the new global economy.
        Last week the Prime Minister wrote a remarkable article in the New
    York Times in which he said something I believe. And I quote: ``When
    Japan overcomes its current economic difficulties, it will emerge a more
    vibrant and flexible society and in an even stronger support--position
    to support the values we share so deeply with the United States.''
        Mr. Prime Minister, that is a goal we will advance together, as
    allies and as friends. Again, I welcome you to the United States, and
    the floor is yours.
        Prime Minister Obuchi. Thank you very much, Mr. President. I'd first
    of all like to express my sincere gratitude to the President for
    inviting me to pay an official visit to the United States, and to the
    Government and the people of the U.S. for their very warm welcome.

    [[Page 673]]

        Prior to my arrival here in Washington, I visited Los Angeles and
    Chicago and met many American citizens from all walks of life who also
    extended me a very, very warm welcome. I was impressed through these
    meetings by the great progress that has been made in the exchanges
    between our two peoples, as well as the solid mutual trust that so
    strongly binds our alliance and partnership.
        Earlier today, during the luncheon hosted by Vice President Gore, we
    shared our views that we'll further expand our bilateral relationship by
    encouraging the two peoples to join in through such organizations as
    NGO's.
        In my discussions with President Clinton, we both confirmed as
    allies--we share the common values of freedom, democracy, and respect
    for human rights--that our two countries will cooperate toward our
    common goal of building a peaceful and prosperous world for the 21st
    century.
        Regarding the problem in Kosovo, let me first join the American
    people in rejoicing for the release of three U.S. servicemen. I stressed
    that it is important for the international community to act in concert,
    through diplomatic efforts, to find a political solution. I welcome the
    dialog between the U.S. and Russia, which is going on today, and I pay
    respect to the efforts made by President Clinton.
        From the viewpoint of supporting the U.S. effort, among others, I
    decided before departing from Japan on an aid package for refugees in
    the Republic of Macedonia and the Republic of Albania, as well as for
    other purposes, which brings the Japanese pledged contribution to a
    total of $200 million.
        Regarding the Japanese economy, I explained to the President that
    Japan is swiftly and boldly taking every measure in order to address the
    difficulties we are facing and to achieve Japan's economic recovery.
    Referring to specific measures aimed at the revitalization of the
    Japanese economy and structural reform, I also explained that we'll pave
    a solid path for recovery within fiscal year 1999 and will continue our
    effort with unwavering resolve to ensure positive growth. Japan's
    economy and society are already experiencing broad-based change, and by
    continuing to advance structural reform, I firmly believe that Japan
    will soon regain its vitality.
        We reaffirmed the importance of ensuring the effectiveness of the
    guidelines for Japan-U.S. defense cooperation. To resolve the issues
    involving Okinawa, we shared our views that we would continuously strive
    to steadily implement the recommendations in the final report of SACO,
    Special Action Committee on Okinawa, while giving due consideration to
    the situation in Okinawa.
        We also discussed our cooperation to secure peace and prosperity in
    Asia. Regarding our policy toward North Korea, Japan supports the
    comprehensive and integrated approach currently being worked out by
    North Korea Policy Coordinator William Perry. We shared the view that,
    based upon close coordination among Japan, the United States, and the
    Republic of Korea, we would continue our policy toward North Korea while
    striking a balance between dialog and deterrence.
        Public opinion in Japan is very negative due to problems related to
    North Korea, such as the missile launch, suspicion of abductions, and
    spy ship activity. But Japan considers KEDO to be important for its
    national security, because it provides the most realistic and effective
    framework for preventing North Korea from developing nuclear weapons.
    With this in mind, the Government of Japan has signed the KEDO-
    Government of Japan loan agreement earlier today, that is, the 3d of
    May.
        Moreover, we affirmed the importance of further developing the
    bilateral cooperative relationships between Japan, the United States,
    and the Republic of China, respectively. I emphasized the importance of
    China's early accession to the WTO and shared the view with President
    Clinton that our two countries will cooperate toward achieving China's
    accession within this year.
        With regard to Indonesia, I told the President that Japan is making
    its utmost effort to support reform in Indonesia, including the holding
    of general elections in June. In response to the Asian economic crisis,
    we shared the view that our two countries will cooperate from the
    vantage point of helping out the socially vulnerable in Asian countries.
        In addition, we affirmed that we will cooperate even more closely
    toward the early realization of the United Nations Security Council
    reform and to improve the ability of the United Nations to cope with
    disputes.
        On the economic front, we shared the opinion that both Japan and the
    United States should

    [[Page 674]]

    play leading roles in strengthening the international financial system
    and in initiating the next round of WTO negotiations.
        Both the President and I welcomed the following achievements through
    the Japan-U.S. dialog on deregulation and investment: the efforts by the
    Government of Japan and other entities to promote investment;
    substantive meeting of minds on agreement between Japan and the United
    States concerning cooperation on anticompetitive activities; and
    significant progress in Japan-U.S. Y2K cooperation.
        Japan and the United States first met in the mid-19th century. Since
    then, the Japan-U.S. relations have seen sunny, cloudy, and some stormy
    days. Due to the untiring efforts of our two peoples over the last half
    century to advance mutual understanding, we have succeeded in building a
    solid relationship of trust.
        Since I first traveled to the United States 36 years ago, I've
    visited the United States almost every year through a congressional
    exchange program to promote friendly relations between Japan and the
    U.S. As the world now stands ready to embrace a new century, we share
    the view that it is the mission of Japan and the United States to take
    the initiative and put our heads together in cooperation so that the
    peoples of more countries can enjoy increased security and prosperity.
    Clarifying this shared vision, I believe, is the greatest achievement to
    come out of this summit meeting.
        Thank you very much.
        President Clinton. Helen [Helen Thomas, United Press International].

    Situation in the Balkans

        Q. Mr. President, all of the recent public statements from the White
    House indicate that there's no room for negotiations. Are you asking for
    total capitulation, total victory, or is there any flexibility in
    negotiations, say, in the makeup of the international peacekeeping
    force?
        President Clinton. Well, let me answer the question, but, first of
    all, let me say, I don't think you can characterize it as total victory.
    That's not what I'm asking for. What I'm asking for are the minimal
    conditions necessary for the Kosovars to be able to go home and live in
    security with self-government. That is, they won't go home unless the
    Serb security forces are withdrawn, and they won't go home unless there
    is a credible international security force, in which NATO plays a role.
        Q. But does America have to be a part of it?
        President Clinton. Now--well, I don't think that a lot of the
    Kosovars will go home if we're not a part of it.
        On the other hand, I have always said, from the very beginning, that
    the United States was open to a broad security force. We would welcome
    the United Nations embrace of such a security force. That's exactly what
    we did in Bosnia; the Russians were there. I personally think it's quite
    important that the Russians, perhaps the Ukraines, perhaps others who
    come from the Orthodox tradition, who have close ties to the Serbs, be a
    part of such a mission. That's one of the reasons that it has been as
    successful as it has in Bosnia, and one of the reasons there's been as
    little violence as there has been there.
        And I have been quite encouraged by President Yeltsin's involvement here, by Mr. Chernomyrdin's involvement. I look forward to seeing him later in the
    day.
        And I'd like to also remind all of you, and the people in Serbia as
    well, that perhaps the most important new element to come out of the
    NATO meeting last week was that all the NATO Allies, which means, in
    effect, the EU, recognize that it was important not just to bring this
    terrible episode to an end on satisfactory terms that clearly reverse
    ethnic cleansing, and repudiate that policy, but also to give the people
    of Kosovo, the people of the Balkans, the people of southeastern Europe
    a larger future together than they have by continuing to fall out with
    each other and fight with each other, and than they would have if Mr.
    Milosevic continued to pursue his
    policies of ethnic and religious cleansing.
        So it seems to me that given those two things, there's plenty to
    talk about, to work on, to engage not only the Serbs but the other
    people of southeastern Europe. But on the basic core conditions, that's
    not a prescription for a victory by NATO or the United States; that's a
    prescription for what it will take for the Kosovars to be able to go
    home and live safely and have a measure of autonomy. That is what is
    necessary.
        Mr. Prime Minister, would you like to call on a Japanese journalist?

    [[Page 675]]

    Japan's Role in the Balkans

        Q. Mr. Prime Minister, on the Kosovo situation, the Government of
    Japan has decided to provide $200 million, basically for supporting the
    refugees. Now, in connection with this, I wonder for a political
    solution, is there any attempt by the Japanese Government to consider
    any role it could play?
        Well, I think there is some expectations that Russia might play a
    role here, and in view of relations with Russia, I wonder if there is
    any possibility Japan might seek a role to play through Japan-Russia
    relations. And I wonder if, Mr. President, you have any expectations
    that Japan play some role here with regard to Kosovo.
        Prime Minister Obuchi. Well, I wholeheartedly support and agree with
    the basic philosophy of President Clinton that efforts be made to
    achieve a peaceful and democratic society in Kosovo, in which all ethnic
    groups will equally share rights and freedom. And I would like to pay
    respect to the United States for all the efforts it has been making for
    a political solution of the problem.
        Now, Japan certainly intends to provide not only financial
    cooperation of, say, $200 million but also, as a member of the G-8
    countries, would like to make efforts towards a political solution. And
    in this connection, at the meeting today as well, I mentioned to
    President Clinton that it is important to form a common stand amongst
    the G-8 countries and asked President Clinton to engage in even closer
    consultations with the Russians. Certainly also intend to take every
    opportunity available to work on the Russians.
        Now, my supreme foreign policy adviser and my predecessor, former
    Prime Minister Hashimoto, visited Russia quite recently and, of course,
    discussed Japan-Russia issues very candidly with President Yeltsin. And
    on that occasion, he also exchanged views very candidly with Mr. Yeltsin
    on the Kosovo situation as well. So as a member of G-8, Japan also
    wishes to study and consider actively what role it can play with regard
    to a political solution to the situation.
        Now, with regard to this support, assistance for the refugees in
    Kosovo, we have had numerous telephone conversations, or I've had
    numerous telephone conversations with Madame Ogata, who heads the United
    Nations High Commission of Refugees, and we very much hope that we could
    provide this support which will enable their early return and peaceful
    life back in Kosovo, and also for supporting in the time being the
    refugees that have to stay on in Macedonia and Albania.
        In addition, we see that increasingly Japanese NGO's are becoming
    active, visiting Kosovo or the neighboring areas, and trying to glean
    information on the ground, and we, therefore, would like to support
    their activities as well.
        President Clinton. In response to the question you directed to me, I
    guess I do see the potential for Japan to play a very constructive role
    here by working with the Russians and by working through the G-8.
        And I think that one aspect of the Japanese aid package, which I did
    not mention earlier, although the Prime Minister did, is the fact that
    they have also set aside funds for Macedonia and Albania. And this is
    quite important because stabilizing those countries is critical to
    having a long-term vision of a united, not a divided, Balkans and
    southeastern Europe, driven by common economic and political interests,
    not divided by ethnic and religious differences.
        So yes, I believe that Japan can play a very constructive role here,
    and I think its influence will be enhanced considerably by the
    generosity of its gift and by both the humanity that it reflects and the
    political understanding it reflects by allocating some of the funds to
    Macedonia and to Albania.
        Terry [Terence Hunt, Associated Press].

    Release of U.S. Infantrymen From Serbia

        Q. Mr. President, Reverend Jackson seems disappointed that NATO did
    not suspend its bombing after he won the release of the three American
    servicemen, even calling it an arrogance of power. Do you think that the
    release of the three POW's suggest that Mr. Milosevic is looking for a
    way out? Or are you concerned that he might be trying to use this for a
    propaganda victory to exploit and divide the NATO Allies?
        President Clinton. Well, the truth is we don't know; maybe a little
    of both. But I think that one of the things we've learned in dealing
    with Mr. Milosevic now for, on my part,
    over 6 years, is that you have to judge him by what he does, and what he
    does in this case, not just with the soldiers.
        Remember, these soldiers were not involved in our action in Kosovo
    or over Serbia. These

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    soldiers were stationed in what was, until the time ran out, a United
    Nations mission in Macedonia to stabilize that country and help those
    people stay out of this conflict. They were not in any way, shape, or
    form involved in this conflict. So I'm grateful for their release.
        But we have made it clear all along that the bombing campaign was
    our effort to reverse what has been done to the Kosovars and our effort
    to act more quickly than Europe and the United States acted in Bosnia so
    that we wouldn't have twice as many refugees and many times as many
    deaths, where a quarter of a million people died in Bosnia.
        So we have to look at that from that point of view. And in terms of
    words, we had words last October and before where Mr.
    Milosevic made certain commitments and
    then they were abandoned. We have tried diplomacy. We have said that
    under the right circumstances we would be willing to have a bombing
    pause. But we would need an acceptance of the basic principles and at
    least the beginning of withdrawal of Serb forces. And I don't believe
    that we should change that position.
        Helen asked me the question about, you
    know, where was there room for discussions, and I think there's room for
    discussion, within limits, about who's in this force and all of that.
    And I think the most important discussion is, what do we do for Serbia,
    for Macedonia, for Albania--including, obviously, Kosovo and Serbia--and
    all the rest of the Balkans and their neighbors in southeastern Europe
    when the fighting is over?
        So I just have a different view here. I think that--I am very
    grateful that these people have been let go--very grateful. But we have
    to have some indication, other than the uprooting of another 10,000
    people, that the release of the pilots is somehow related to a general
    change in the human attitude toward the people of Kosovo. And we don't
    have that yet. The two things are completely separate so far.
        I hope we will have soon. I think the American people know me well
    enough now, after all these years, to know that I do not enjoy sending
    young Americans into harm's way. I do not enjoy operations that I know
    will inevitably, from time to time, no matter how good our equipment and
    how brilliant our pilots, lead to unintended casualties of people who,
    themselves, did not perpetrate these terrible conditions.
        But let me remind you: We have lived through now nearly a decade of
    a systematic attempt to uproot, subjugate, and destroy people because of
    their ethnic and religious heritage. That is what we have to reverse;
    that is what we are trying to stop. And we can have a bombing pause if
    it's clear that it will be in aid of that larger purpose.

    Japanese Economy

        Q. Prime Minister Obuchi, two questions: One on the Japanese economy
    and the other on Kosovo. On the Japanese economy, I believe in the
    morning meeting you had with President Clinton, President Clinton asked
    that it is important to maintain the economic measures in place, or that
    these measures not be withdrawn. And I wonder, you are advancing the
    implementation of public investment, and I think it is conceivable that
    these measures will run out of steam, say, in coming autumn. So
    including the possibility of drawing up a supplementary budget, I wonder
    if you have any thoughts about further fiscal measures.
        On the Kosovo question, NATO has been saying that after the Yugoslav
    security forces withdraw from Kosovo, peace should be maintained by
    sending in international peacekeeping forces, or forces for
    international supervision. And I wonder if Japan considers it possible
    for a Self-Defense Force participation.
        Mr. President, on the Japanese economy, I wonder if you do hope
    Japan to mobilize further fiscal and other measures to stimulate the
    economy.
        Prime Minister Obuchi. Let me first handle those questions. On the
    future questions regarding the Japanese economy, at the meeting we had
    this morning, President Clinton referred to the various measures that
    I've instituted since I took office, and he indicated very high
    appreciation for that and also indicated his hope and expectation that
    these measures will be kept up.
        The greatest problem for the Japanese economy was the financial
    sector problem--the financial system problem. And with the two laws
    being put in place, I believe we now see the financial system moving
    ahead towards regaining international confidence. Unfortunately, earlier
    this year, some major banks faced financial difficulties and were placed
    under tentative government or public administration. But through this
    somewhat hard landing, I believe that international confidence has been
    rising toward the

    [[Page 677]]

    Japanese financial system. And I believe that with the achievement of
    greater stability in the financial system, the Japanese economy will be
    able to make a major turnaround.
        At the same time, with regard to fiscal mobilization, or fiscal
    spending, we froze the fiscal structural reform plan or the law, and we
    also started the budget for the new fiscal year that mobilizes a very
    positive stimulation fiscally, and also emergency economic measures
    adopted last year are also being implemented. The budget for the new
    fiscal year that started on the 1st of April has been implemented very
    smoothly.
        I think the question--perhaps because as so many measures have been
    instituted--that you were asking if there would be additional measures
    ahead, and also with a fear that these measures might run out of steam.
    But I'll squarely watch how things develop in this quarter--April,
    June--and should tangible results emerge from the measures we've already
    put in place, then I trust that the Japanese economy will turn around to
    a positive growth, somehow, following negative growth for 2 years back-
    on-back. So I believe there is full confidence in the measures in place
    today.
        Now, it is true--well, I think the question was whether President
    Clinton has indicated any desire to see further measures, stimulus
    measures. No, I don't think that is the case. I believe we have adequate
    policy measures in place.
        Needless to say, we have to pay utmost and elaborate attention to
    the ongoing situation. And I therefore am not suggesting, by saying
    things that I mentioned earlier, that what we have today would suffice.
    We certainly would continue to turn adequate attention and utmost care
    to the developments as they transpire. Having said that, at this moment
    I don't think the President suggested any additional fiscal stimulus.
        With regard to your question on Kosovo--well, as far as Japan is
    concerned, as I mentioned earlier, it is, in the first place, important
    to consider how best we could help out the refugees, who are in a very
    unhappy state of affairs from a humanitarian point of view. Now, we
    certainly have to watch how things will transpire in Kosovo, what sort
    of international military presence will be organized. At this very
    moment, I certainly have no idea how things will shape up. And also
    inclusive of the discussions, consultations between U.S. and Russia, of
    course, the entire world is watching how things will go.
        And I believe it is up to the negotiations amongst the countries
    concerned as to what sort of substance and composition this
    international military presence will take place, and therefore, I'm not
    in a position to discuss in any way participation by the Japanese Self-
    Defense Forces.
        President Clinton. The question you asked me, let me just try to
    repeat the points I made. I'll do it as briefly as I can. First of all,
    I think the Prime Minister has been very aggressive on the economy over
    the last year, and he deserves a lot of credit for that, he and those
    who have voted with him in the Diet.
        I made the following points: First of all, I hope that these
    stimulus measures would remain intact--not new ones but the ones on the
    books now--would remain intact until the economy clearly showed signs of
    sustained growth. I made that point because I would imagine this would
    be difficult since the Japanese people and their Government have clearly
    shown a commitment to long-term fiscal responsibility and don't like
    running deficits. And I don't blame them.
        But the great threat of the world today, and particularly the great
    economic threat in Asia, is not inflation caused by deficit spending and
    printing too much money; it's deflation, contraction, caused by a lack
    of economic activity and frozen assets. So that is why I made that
    point, in the hope that I could be helpful to the Prime Minister in
    pursuing his policy and staying with it.
        The second thing I would like to say is, I think that Japan has
    adopted very farsighted, even though expensive, legislation to
    reorganize the financial institutions and get them back to health. Our
    experience in the United States, when we had a similar but smaller
    problem with our savings and loans, is that the quicker you can take the
    assets that are tied to bad loans out from under the bad loans and
    therefore out of paralysis and put them back into the economy, the
    quicker you can see growth again. And I think that is important.
        And then the third point I made, which I mentioned in my remarks, is
    that I think that together we should continue to push restructuring, and
    we committed to another round of deregulation. So those were the points
    that I made.
        Steve [Steve Holland, Reuters].

    [[Page 678]]

    Situation in the Balkans

        Q. Mr. President, you mentioned the bombing pause. Could you
    elaborate on the conditions for a bombing pause and what Mr. Milosevic
    needs to do at a bare minimum to achieve one? And will you be talking to
    Mr. Chernomyrdin about this tonight?
        President Clinton. Yes--the second answer is yes. And the first
    answer I will repeat--it hasn't changed: I think there has to be a clear
    commitment to let the Serbs come home--I mean, the Kosovars come home;
    to withdraw the Serb security forces and permit an international
    security force that has a mandate to protect both the Kosovar Albanians
    and the minority Serbs who live in Kosovo; and an understanding that the
    Kosovars will have a self-government, an autonomy, as they had under the
    previous constitution.
        Now, what I said is subject to negotiation is who's going to be in
    the security force, how is it going to work, and all of that--except I
    do believe that the NATO group has to be a big part of it, because
    otherwise the Kosovar Albanians won't want to go back; neither will the
    armed groups among the Albanians readily lay down their arms.
        That's another thing that often gets overlooked here when people
    say, ``Well, what difference does it make if NATO is there? What
    difference does it make if the United States is there?'' Because we
    stood up for the rights of those people to be free of ethnic cleansing,
    to live on their own land, to have their autonomy, we have some claim of
    credibility in a peace process which we believe will enable us to be
    successful in getting them to agree to the terms of the peace, just as
    they did in France.
        Secretary Albright was there. Keep
    in mind, a lot of people have forgotten that they agreed not only to go
    home and to have an international security force but to disarm and not
    to engage in further military operations themselves. And that is very,
    very important, if we're going to have a peace there.
        So, if those conditions--and in terms of the bombing pause, that the
    withdrawal of forces must at least begin, so we know that we're not just
    stopping based on someone saying something, because he's said things to
    us before that didn't come to pass. So we want to see some action.
        Now, beyond that, there is a great deal to be decided and a lot to
    talk about. And particularly, what are we going to do in the long term
    to develop the whole region?
        But these basic conditions--it's not, to go back to what Helen said,
    it's not so the United States or NATO can say, ``We won a victory.''
    It's so we can meet the need, the fundamental need of the situation to
    have a human, secure existence for the Kosovars when they go home and so
    that we do not spawn yet another different war in the aftermath of the
    bitterness of this conflict.

    North Korea

        Q. I'd like to ask a question of the President and the Prime
    Minister. First question for the President. In your earlier meeting with
    the Prime Minister, I believe on the question of North Korea, Prime
    Minister Obuchi referred to the problem of abductions of Japanese
    nationals by North Korea, asking for U.S. cooperation. Now, you place
    much emphasis on human rights issues, and as President, how would you
    respond to address this request of cooperation on the abduction issue?
        A question for the Prime Minister. You visited Korea recently, and
    now you're here in the States. On the question of Korean Peninsula
    situation and North Korea, I believe you have agreed to maintain close
    coordination among the three countries, U.S., Japan, and South Korea,
    vis-a-vis North Korea. I wonder if, more specifically, how would you
    respond to the North Korean situation?
        President Clinton. You have asked me a very specific but a very
    important question. First of all, I don't believe that Japan should
    abandon this issue until it is resolved. In my Presidency, we still had
    people in Vietnam looking for our prisoners of war and for their
    remains. And if you believe that there are Japanese people who were
    abducted and taken to North Korea, I think you should keep working on it
    and looking until you find them alive or you know where they're buried.
    And I will support that very, very strongly.
        My position is that if we can find a way to work with the North
    Koreans to remove the nuclear threat, to remove the missile technology
    threat, and ultimately to remove the threat of conflict on the Korean
    Peninsula, it is more likely that other matters will also be resolved.
    But that's why I think it's so important that

    [[Page 679]]

    we work together and with the Chinese and with the Russians on this
    issue.
        North Korea is still a very isolated country. Even China now does
    about 10 times as much business every year with South Korea as with
    North Korea. So I think you ought to stay at that. I have discussed this
    issue, actually, because it's so important to the Prime Minister--and it
    has been important to his predecessors--I have discussed this issue with
    the leaders of Russia and China and have made it clear that we would
    support the Japanese position that there had to be somehow an accounting
    for these people. Insofar as is humanly possible, we need to try to
    resolve their fate. And I think that is the right thing to do.
        Prime Minister Obuchi. Thank you very much, Mr. President. North
    Korea is a neighbor of Japan, just across the water. And amongst the
    180-odd member countries of the United Nations, North Korea is the only
    country with which we have not normalized diplomatic relations. And
    therefore, we need to engage in efforts to realize that as early as
    possible.
        And to that end, as I've been saying from time to time, we believe
    both dialog and deterrence will be necessary. The North Koreans launched
    their missile over Japanese territory. They also have this problem of
    suspicious nuclear facilities and then also these cases of abductions of
    Japanese nationals. These being the case, we believe it is necessary for
    Japan to cooperate with the United States and the Republic of Korea to
    engage firmly in efforts at deterrence, but at the same time strive
    towards dialog.
        Between the United States and North Korea, there already exists a
    channel for dialog, and also between North Korea and the United States--
    and also for Korea and China--there is a framework for discussions.
    Unfortunately, between Japan and North Korea, there is no such channel
    for dialog. So we would like to work on that actively.
        On the KEDO question which I referred to earlier, as I mentioned, we
    were able to sign the KEDO-Government of Japan loan agreement today. So,
    financially, I believe KEDO has been able to make a major step forward
    towards building light-water-reactor-powered nuclear stations.
        Now, William Perry, North Korean Policy Coordinator, has visited
    Japan twice and has advocated that Japan and the United States together
    work on a comprehensive and integrated approach towards North Korea. So
    under coordination and concerted efforts of the three countries, Japan
    would like to continue to make efforts.
        President Clinton. We'll do one more each, maybe.
        Scott [Scott Pelley, CBS News].

    Situation in the Balkans

        Q. Thank you, Mr. President. Three related points, if I may. First
    of all, what must Mr. Milosevic do to articulate this clear commitment
    that you seek? Second, what do his forces on the ground have to do? And
    how quickly would a NATO bombing pause follow?
        President Clinton. Well, I don't know how else I can say what I have
    already said. And we will discuss--I mean, I hope I'll get a chance to
    get into some of this with Mr. Chernomyrdin today, and I expect I will. We want to be clear that
    all the Serbs can come home--I mean, all the Kosovars can come home;
    that the Serb security forces will leave; that we will have clear and
    unambiguous evidence that a withdrawal is underway; and that the other
    conditions I mentioned in terms of self-government and especially the
    international security force have been accepted. Then we could have a
    bombing pause.
        I will say again: I do not relish every night sending young
    Americans and our NATO Allies up in planes, flying very fast under very
    hazardous circumstances in which their safety is at risk. I do not
    relish the continuing burdens on the people of Albania and Macedonia. I
    am eager to get the Kosovars out of the camps and on their way back home
    and rebuilding. I do not relish the thought that, inevitably, some of
    those bombs will go astray and some Serbian civilians or some Kosovar
    civilians could be killed.
        I am not trying to drag this out, but I am determined to pursue our
    policy until we know that we have a chance to do what has to be done in
    order for this to work, as a practical matter; and in order, finally, to
    clearly and unambiguously reverse the policy of ethnic and religious
    cleansing.
        We are standing--I think that is quite simple, and I don't believe
    that I've been very complicated or hard to understand here.
        Q. No, sir, but is it as simple as a telephone call, sir, to Mr.
    Solana or to yourself? Or does there have to be a negotiation of some
    kind?

    [[Page 680]]

        President Clinton. Well, we have--the diplomatic efforts are
    ongoing, and I think we should allow them to go on and encourage them.
    But it's not for lack of clarity of conditions here. We're quite clear.
    I don't think there's any ambiguity here.

    China and Taiwan

        Q. A question for President Clinton. As a result of the passage of
    the new defense cooperation guidelines, I think the major question now
    is, how--in case a major regional conflict occurs, how Japan will
    cooperate. And I believe for Japan a major delicate issue will be in
    case a conflict occurs between China and Taiwan. So, Mr. President, in
    case that sort of conflict occurs between U.S. and China, what sort of
    support will the United States give to one of the parties? And in that
    instance would you request Japan's cooperation under the new guidelines?
        President Clinton. Well, let me reiterate our policy. I think the
    best way for me to answer that question is to reiterate our policy. Our
    policy is that we support ``one China,'' but we also support China and
    Taiwan resolving their differences by peaceful means. And we have done
    everything we could for many years now, including during my time here in
    office, to take preventive action when we were afraid the peace might be
    broken. Our policy is to have a vigorous engagement of China so that we
    can reiterate both our ``one China'' policy and our conviction that the
    differences between Taiwan and China ought to be resolved peacefully.
        I have found that as long as that is our clear policy, and as long
    as we demonstrate our determination to do everything we can in terms of
    the moves we make and the words we say to avoid a break in the peace,
    that that is a better policy than answering hypotheticals, like the one
    you asked me.
        I think that--in a larger sense, what I would like China to know,
    and what I believe, is that both the United States and Japan would like
    to have a 21st century in which we work together and cooperate and there
    is no fighting. The three of us, together, could do great things in the
    Asia/Pacific region. We also, however, would like to be together based
    on shared values. And I think that is important for me. I worked very
    hard to convince President Jiang Zemin of that,
    Premier Zhu, and the people of China when I was
    there.
        China is a very great country, and there need not be that sort of
    conflict over this issue. And I think that our strong defense
    cooperation--Japan and the United States--should not in any way be seen
    as directed against China. It is in favor of advancing both the security
    interests of our two countries and the values we embrace.
        And we hope--I'll let the Prime Minister speak for himself--but I
    think I'm quite sure in saying that both of us hope that our successors
    in the 21st century will see China as a great partner, and the three of
    us will be working together for peace and stability, prosperity, and
    freedom in the Asia/Pacific region.
        Prime Minister Obuchi. Well, I believe the question wasn't directed
    to me, but--well, I believe with regard to the new defense cooperation
    guidelines, this is to more steeply and effectively put in operation the
    Japan-U.S. security treaty, and this certainly would further strengthen
    the ties between Japan and the United States. Should the relevant bills
    pass the upper house as well, before long, then I believe the Japan-U.S.
    relationship will become even more firm.
        Thank you very much.
        President Clinton. Thank you very much. Thank you.

    Note: The President's 174th news conference began at 3:10 p.m. in
    Presidential Hall (formerly Room 450) in the Old Executive Office
    Building. Prime Minister Obuchi spoke in Japanese, and his remarks were
    translated by an interpreter. In his remarks, the President referred to
    Staff Sgt. Andrew A. Ramirez, USA, Staff Sgt. Christopher J. Stone, USA,
    and Specialist Steven M. Gonzales, USA, infantrymen released from
    custody in Serbia, and civil rights leader Jesse Jackson, whose personal
    appeal won their release; President Slobodan Milosevic of the Federal
    Republic of Yugoslavia (Serbia and Montenegro); President B.J. Habibie
    of Indonesia; President Boris Yeltsin and Special Envoy and former Prime
    Minister Viktor Chernomyrdin of Russia; and President Jiang Zemin and
    Prime Minister Zhu Rongji of China. Prime Minister Obuchi referred to
    United Nations High Commissioner for Refugees Sadako Ogata. A reporter
    referred to Secretary General Javier Solana of the North Atlantic Treaty
    Organization.