[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

[[Page 676]]

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.