    [Public Papers of the Presidents of the United States: George W. Bush (2002, Book I)]
    [February 18, 2002]
    [Pages 244-249]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's News Conference With Prime Minister Junichiro
    Koizumi of Japan in Tokyo, Japan
    February 18, 2002

        Prime Minister Koizumi. This is my fourth meeting with President
    Bush, and we engaged in very candid and very friendly talks, and very
    useful meeting it was. I was able to renew our friendship and cement
    further our relationship of trust and reaffirm the importance of Japan-
    U.S. alliance.
        In the fight against terrorism, Japan, on its own initiative, has
    been cooperating with the United States and in cooperation with the
    international community to eradicate terrorism. And we shall continue
    with this firm resolve and firm stance to fight against terrorism in the
    days ahead, as well.
        I expressed my respect for the strong leadership that President Bush
    has exercised to date. On September the 11th, these unforgivable
    terrorist acts took place. But in this fight against terrorism, we shall
    continue--we shall need to sustain our cooperation, and under
    international cooperation we need to carry forward this fight against
    terrorism.
        On these points, again, we saw eye to eye. On the issue of
    Afghanistan, the roles that Japan and the United States play will
    differ, but we should complement each other in order to make our own
    contributions to the reconstruction and rehabilitation of Afghanistan.
        Turning to East Asia, as a whole, the relationship between Japan and
    East Asia is important for the stability and the peace in the world.
    Japan attaches importance to our relations with China and Korea, and the
    close coordination between Japan and China and Japan and Korea is
    something that I would also like to work on to further strengthen.
        On North Korea, Japan, through cooperation and coordination with the
    United States and Korea, would like to work on normalization of
    relations with North Korea.

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        With regard to China, we welcome China's accession to WTO, and it
    will be hosting Olympic games in the future, as well. And I very much
    hope that China will play important roles in the international community
    and also play its part in the international community, recognizing its
    important responsibilities. In considering the future of friendly ties
    between Japan and China and Japan and Korea, we also agree that Japan-
    U.S. relations would be very important.
        And turning to economic issues, economic revitalization in Japan to
    imbue confidence once again in the Japanese economy, this is the
    greatest mission given to my Koizumi administration. Whether my support
    is high or low, I shall not slacken this structural reform efforts that
    I've made. This policy of structural reform will not change whatsoever.
    I explained this to President Bush, the measures against deflation and
    measures to prevent the financial unrest, but we will do all our best in
    this regard. So there will be absolutely no change to the structural
    reform efforts that the Koizumi administration has maintained. In fact,
    it may only be strengthened, but it will not change; the policy will not
    change.
        Ten years ago, Japan perhaps was a little overconfident. Today,
    Japan has lost confidence in itself. But Japan has to regain confidence
    in itself, and with hope, if we work on the structural reform, then
    definitely Japan shall be able to revive its economy. And the potentials
    of Japan can also come to the fore. And it is to that end that the
    Koizumi administration has been working on structural reform. And
    President Bush has shown his understanding towards this and has
    expressed his strong support for this policy of mine.
        On global challenges, there is the global warming issue and Kyoto
    Protocol question. The United States has come up with a very positive
    proposal. The problems of environment and the problems of economy, these
    should proceed hand in hand, and they should not run counter to each
    other. On the future problems of the globe, the technological
    development in the interest of the environment will produce economic
    growth.
        So economy and the environment do not run against each other.
    Rather, efforts to improve the environment will bring about science and
    technology--development in science and technology and, thus, also
    generate greater economic development. This perspective should not be
    lost.
        Japan will aim at achieving both economic growth and environmental
    improvements. So Japan welcomes the positive proposal on global
    environment issue, and we appreciate the stance shown by the United
    States to contribute on that front, and we'll expect greater efforts in
    that respect.
        On the environmental questions, economic questions, and so on, in
    these broad areas Japan wishes to engage in discussions with the United
    States and cooperate with the U.S. So I was able to have very candid
    exchange of views on all these and numerous other issues.
        This, as I said, was our fourth meeting, but I feel as if we've met
    each other umpteen times already. In fact, we were able to exchange
    views on almost anything. Our relations are built on a deep mutual
    trust, and building on that, we'd like to further develop our relations.
    And I believe it will be important for Japan and the United States to
    cooperate on these and numerous other issues, because in doing so we'll
    contribute not just to Japan and the United States but to the entire
    world as well. And I think it was a great meeting.
        President Bush. Thank you very much, Mr. Prime Minister. It is a
    real pleasure and honor to begin my trip to Asia here in Japan. And the
    reason why our first stop is here in Japan is because Japan is one of
    America's greatest and truest friends.
        I also want to thank my friend the Prime Minister. He is a man whose
    word I trust, a man whose advice I seek, and a person with whom I've got
    good personal relations.

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    And I want to thank you for your friendship and your generous
    hospitality.
        I believe the U.S.-Japanese alliance is the bedrock for peace and
    prosperity in the Pacific. Japan is a generous host to America's
    forward-deployed forces, providing an essential contribution to the
    stability of Asia. This enduring partnership benefits both our
    countries, but it also benefits the world. The peace of the world is now
    threatened by global terror. And we have had no better friend, and
    nobody provides such steadfast support than the Japanese Government.
        I remember the phone call, Mr. Prime Minister, you gave me when I
    was in the Oval Office. It meant so much to hear--in this right after 9/
    11, it meant so much to hear your voice and your steadfast support,
    which has not wavered. And I want to thank you and the Japanese people
    for that.
        Japan also understands that in order to complete the first theater
    in the war against terror, that we must help Afghanistan rebuild. And I
    want to thank you, Mr. Prime Minister, and your government for hosting a
    very important conference. Today we had a--we spent some--a good deal of
    time talking about how to make sure that the Afghanistan of today, the
    post-Taliban Afghanistan, is stable and has a chance to achieve
    prosperity and security and peace for her citizens. And Japan plays an
    incredibly important role in that.
        Japan also has aided people throughout the world. Japan is a
    generous nation, helping the developing nations with health and
    education needs, and for that we are also very grateful.
        Prime Minister Koizumi and I not only reaffirmed the importance of
    the Japanese-United States security alliance; we also talked about our
    economies. I told him that our economy is still in a recession, but
    there are some hopeful signs that we're recovering. There are some signs
    that the tax relief plan that we put in place is having a positive
    effect, so that we're beginning to see some growth.
        I also, obviously, talked to him about his strategy for the Japanese
    economy. And he mentioned about confidence. Well, let me tell you what
    my confidence level is like: I'm confident in this man's leadership
    ability; I'm confident in his strategy; and I'm confident in his desire
    to implement that strategy. And when he implements the strategy, it will
    help Japan's economy a lot. And that's important. It's important not
    only for our bilateral relations; it is important for the world's second
    largest economy to grow. It'll help the region, and it will help the
    world.
        And so, Mr. Prime Minister, it is my honor to come to your beautiful
    country. I want to thank you very much for your hospitality. Laura thanks you for your hospitality, as well. And I look
    forward to our meeting tonight and the chance to speak to the Diet
    tomorrow. And as importantly, I look forward to meeting the Imperial
    Majesties, the Emperor and the
    Empress.
        Thank you, sir.
        Prime Minister Koizumi. Thank you very much. Do you have any
    questions, please?

    Reforming Japan's Economy

        Q. First, a question for President Bush. In the early meeting, did
    you make any specific--did you ask the Prime Minister to take any
    specific actions on the Japanese economy? Much is said about the triple
    lows for the Japanese economy, and some speak of an impending financial
    crisis. Which would you like Japan to give priority to, structural
    reform or antideflation measures? And Prime Minister Koizumi, what sort
    of balance do you intend to strike?
        President Bush. First of all, before I had a chance to bring up the
    economy, the Prime Minister brought up the economy. In our private
    discussion, he said, ``I want to make it very clear to you exactly what

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    I intend to do.'' And he talked about nonperforming loans, the
    deflation* issue, and regulatory reform, and he placed equal emphasis on
    all three.
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        *White House correction.
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        And I'm not here to give advice. I'm here to lend support. When he
    looked me in the eye and told me that he is going to take measures
    necessary to improve in all three regions, I believe him. I believe
    that's his intent. And that is good news, because it's going to require
    a strong leader to deal with the difficult problems facing the Japanese
    economy.
        Q. Mr. Prime Minister?
        Prime Minister Koizumi. He asked about structural reform or measures
    against deflation. That question, itself, I think is built on a wrong
    perception. Whatever the situation may be, Japan needs to carry through
    its structural reform. Of course, there are many activities that are
    going on where Government is not involved, and we can invite the private
    sector to come into areas that were covered by the Government, and we
    should carry forward regulatory reform, as well. And there will be, of
    course, confrontation with the vested interest.
        Whatever measures we may take, financial measures or deflationary
    measures or fiscal policy measures or what, changes will not take place.
    So it's not really a question of which should be given priority,
    structural reform or deflationary measures. Whatever the situation may
    be, we have to implement a structural reform. So the Koizumi
    administration will never slacken its efforts to work on structural
    reform.
        I hope you understand that point full well. Some might think that
    I'm going to shift from structural reform measures. I'm aware of those
    voices, but that will never happen. Whatever the situation, structural
    reform needs to be implemented, and without that, there cannot be
    economic revival of Japan.
        And having said that, deflationary measures or monetary easing,
    these are measures needed to accelerate structural reform. So whatever
    the situation may be, I will never slacken the structural reform.
        Q. Mr. President, you expressed confidence in the Prime Minister
    again today. But he's been in office for about a year now, and he's been
    unable to enact structural reforms. Why do you think it's taken so long
    for the Japanese Government to enact the reforms you're talking about?
        And to the Prime Minister, you called the President's alternative to
    Kyoto a positive proposal. That given, do you think the world's
    environment would have been better off if America had signed on to
    Kyoto?
        President Bush. The second question is moot. What was the first
    question? [Laughter]
        Q. Why has it taken----
        President Bush. Oh, that's right, yes. Listen, sometimes it is very
    difficult to get a reform package done in any society, but particularly
    structural reform. And what the Prime Minister is proposing is a bold
    agenda, and it takes somebody who's willing to spend capital, political
    capital, to get the agenda done.
        So I am--my main focus of this meeting was to judge intent and
    desire and willingness to work hard to achieve a bold agenda. And having
    listened to the Prime Minister at length today and looked him in the
    eye, I feel very confident that that's precisely what he is going to do,
    pursue a bold agenda.
        And sometimes it is not easy to get others to follow, but that's his
    job, is to lead. And he knows that. And that's why, one, I like him a
    lot, because I appreciate bold leadership. And secondly, he is going to
    stay the course, and that's important as well.
        Prime Minister Koizumi. Well, some might say we're slow, but we're
    moving steadily. It's been less than one year. Many people say there
    haven't been tangible results. But look at Thatcher reform or Reagan
    reform; none of these reforms were achieved within a year or two. In
    fact, the

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    results of the Reagan reform came to fruition after he had retired. So
    it's been less than one year, and I would like to say that we are making
    steady progress. Of course, in certain areas we can achieve results in 9
    or 10 months. But I hope you understand that there are areas where we
    have been making steady progress. Of course, there is a need for
    coordination with the Diet, with the parliament. And there are areas
    where we cannot proceed without their approval, but we are proceeding
    steadily. And of course, we are striving to move forward our reform, but
    we're not falling behind at all.
        As for the Kyoto Protocol, Japan has been very tough on the
    environmental questions, and we've been very active. I certainly
    understand the circumstances in the United States, but of course we will
    continue to work so that we can cooperate with the United States. It is
    a question for the United States to decide whether to take part in the
    protocol or not, but I hope we will continue with our efforts so that we
    can move in the same direction, as I said earlier. Both the economy and
    the environment can be improved together, and we'd like to see further
    efforts on the part of the United States.

    Iraq, Iran, and North Korea

        Q. A question for President Bush. You referred to Iraq as the axis
    of evil. And I wonder if in the meeting you referred to the possibility
    of exercising force and, if so, what did you say? And what role would
    you expect of Japan?
        Mr. Koizumi, if the U.S. really exercises force, what specifically
    would Japan do?
        President Bush. [Inaudible]--talked about my speech I gave to the
    Congress. Japan is one of our strongest allies and close friend. And I
    explained to the Prime Minister that there are some nations in the world
    which want to develop weapons that will hurt the United States and/or
    our friends and allies, and we've got to stop them from doing so.
        I also reminded him, in the speech I talked about the need for
    nations to come together, to work together. And I reiterate that, that
    we've got a coalition of freedom-loving nations that can work together
    to, hopefully, help them change their behavior. I also explained to him
    that all options are on the table and that I will keep all options on
    the table.
        Other than that, there are--there's nothing else to talk about. We
    want to resolve all issues peacefully, whether it be Iraq, Iran, or
    North Korea, for that matter. And as you know, I'm going to the Korean
    Peninsula to talk about that very subject. On the one side of a
    parallel, we've got people starving to death because a nation chooses to
    build weapons of mass destruction; and on the other side, there's
    freedom. And it's important for those of us who love freedom to work
    with nations to convince them to choose freedom.
        But I've also said that they should make no mistake about it, that
    we will defend our interests, and I will defend the American people. And
    that's what we talked about.
        Prime Minister Koizumi. With regard to this axis of evil, again we
    exchanged our views very frankly. Iraq, Iran, North Korea, we exchanged
    our views regarding these countries very candidly.
        The expression ``axis of evil,'' I believe, reflects the firm
    resolve of President Bush and the United States against terrorism.
    President Bush, I believe, has been very calm and cautious vis-a-vis
    Iraq, Iran, and North Korea. He will not exclude any possibilities in
    order to prevent the proliferation of weapons of mass destruction, to
    prevent terrorism. He will resort to all possible means to fight against
    terrorism, and I believe this resolve was behind the expression ``axis
    of evil.''
        Now, this fight against terrorism is not going to be a short one. I
    understand it's going to be a drawn out and tough fight. And Japan,
    together with the United States and the international community, will,
    on

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    its own initiative, cooperate very actively. And I believe Japan's role
    in the fight against or eradication of terrorism will be very important.
    And Japan shall continue to support the United States. So that's the
    sort of exchange of views we had.

    Nature of the Coalition

        Q. Mr. President, the French Foreign Minister called your ``axis of
    evil'' remarks simplistic, and a top European Union official has accused
    you of taking an absolutist position on this. If you do not get the kind
    of support that you just suggested from your allies, is the United
    States willing to go it alone?
        President Bush. Well, first of all, the Secretary of State had, I thought, an interesting reply to the French
    Foreign Minister. And you might want to ask
    him afterwards what he meant by ``vapors.''
        People who love freedom understand that we cannot allow nations that
    aren't transparent, nations with a terrible history, nations that are so
    dictatorial they're willing to starve their people--we can't allow them
    to mate up with terrorist organizations. In the war against terror, one
    of the worst things that could possibly happen is Al Qaida-like
    organizations becoming allied and operationally attuned to nations which
    develop--which have a weapon of mass destruction. Freedom-loving people
    understand that, and I'm going to continue making the case.
        Now, listen, I understand what happens in the international arena;
    people say things. But the leaders I've talked to fully understand,
    exactly, what needs to happen. They understand the resolve of the United
    States of America. They understand that our commitment is not just in
    Afghanistan, that history has given us a unique opportunity to defend
    freedom. And we're going to seize the moment and do it.
        And I'm confident nations will come with us. Right here is a Prime
    Minister that has said he's our friend; he is a part of a coalition; and
    he's going to be steady in our coalition. And for that I'm very
    grateful. And the other world leaders I have talked to have expressed
    the same resolve and determination. And so I don't accept the hypothesis
    of your question.
        Prime Minister Koizumi. Thank you very much. This concludes the
    press conference.
        President Bush. But never mind. [Laughter] Thank you all.

    Note: The President's news conference began at 2:07 p.m. in the Kantei,
    the Prime Minister's official residence. Prime Minister Koizumi spoke in
    Japanese, and his remarks were translated by an interpreter. In his
    remarks, the President referred to Emperor Akihito and Empress Michiko
    of Japan; and Minister of Foreign Affairs Hubert Vedrine of France. The
    President also referred to the Tokyo donors conference, the January 20-
    21 meeting of 61 nations which pledged $4.5 billion for the
    reconstruction of Afghanistan. Prime Minister Koizumi referred to the
    Kyoto Protocol to the United Nations Framework Convention on Climate
    Change.