[Weekly Compilation of Presidential Documents Volume 29, Number 28 (Monday, July 19, 1993)]
[Pages 1303-1305]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks With Prime Minister Kiichi Miyazawa of Japan in Tokyo

 July 10, 1993

    Prime Minister Miyazawa. President Clinton and I were able to agree 
upon the establishment of the Japan-U.S. framework for a new economic 
partnership. This agreement comes at a time to coincide with the Tokyo 
summit, which symbolizes the cooperation  and  coordination  between  
the G-7 partners in the international society in the post-cold-war era.
    This framework is something that President Clinton and I agreed to 
establish in our bilateral summit meeting held in last April. President 
Clinton and I share the views that establishing such a new framework and 
stabilizing Japan-U.S. economic relations from the medium- to long-term 
perspective and managing our bilateral economic relationship 
constructively are extremely important not only to the enhancement of 
the national life of our two countries but also to the maintenance and 
strengthening of the free trading system of the world.
    The negotiating teams of our two countries, based on those 
perspectives, the negotiating teams of both countries made serious 
negotiations both in Washington and Tokyo. And they made further 
negotiations on the occasion of President Clinton's visit, and 
subsequently, they have succeeded in reaching an agreement.
    Let me share you the gist of this framework in a few words. This 
framework aims at facilitating frank and broad exchange of views between 
our two countries, and aims at resolving the economic issues between our 
two countries based on the spirit of joint exercise between the two 
largest free market economies that are the United States and Japan, and 
also aims at advancing our cooperation on issues such as environment and 
technology which have significance. More concretely, under this 
framework we will operate on the principles of two-way dialog and 
limiting our consultations to matters within the scope and 
responsibility of government.
    Under those principles, we will deal with the following: to Japan's 
efforts at reducing the current account surplus and the reduction of the 
American Federal budget deficit, in the macroeconomic area. In sectoral 
and structural area we will deal with government procurement and 
deregulation, et cetera. And on our common task for cooperation on 
global perspective, we will deal with issues such as environment and 
technology. And we

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will announce the achievements regarding these issues at our biannual 
bilateral summit meeting.
    Furthermore, let me share with you that Japan intends to take 
measures on its own initiative to further expand its market access, to 
enhance its transparency, and promote deregulation, all along with our 
objective to achieve better quality of life. And I expect and hope that 
in the United States as well the U.S. Government will make progress in 
reducing the Federal budget deficit and in strengthening international 
competitiveness.
    Through the efforts of our two governments, we would like to 
contribute to the strengthening of Japan-U.S. economic relations and 
also to contribute to the development of world economy in the future.
    Thank you, Mr. Clinton.
    The President. Thank you. Thank you very much. Today's agreement is 
an important step toward a more balanced trade relationship between the 
United States and Japan, but it also benefits the world trading system.
    For years we have had trade agreements that have failed to reduce 
our chronic trade deficits. Those agreements have not worked because 
they lacked a commitment to tangible results and they provided no way to 
measure success. This has caused resentment to build over time on both 
sides, threatening our vital friendship.
    This framework agreement we are announcing today takes a different 
approach. As I said in my speech at Waseda University earlier this week, 
we are not interested in managed trade or trade by numbers but better 
results from better rules of trade. This framework launches us on that 
road.
    As the Prime Minister said, we will negotiate a series of agreements 
under this framework, some to be completed within 6 months, the rest 
within a year, that will allow greater penetration of the Japanese 
marketplace in specific areas of the economy. And these new agreements 
will include specific timetables and objective criteria for measuring 
success. These results-oriented agreements can create bigger markets for 
key U.S. industries, including the automotive industry, computers, 
telecommunications, satellites, medical equipment, financial service, 
and insurance. If we are successful, we will create benefits for 
citizens in both the United States and Japan: more jobs and 
opportunities for America's workers and businesses, new choices and 
lower prices for Japanese consumers, and new jobs for Japanese citizens 
in business establishments located in Japan but owned by citizens of 
other countries.
    Again, as the Prime Minister said, this framework also includes a 
basic bargain. We agree that the United States will significantly cut 
our budget deficit, which has clearly slowed the growth of the global 
economy. And we will continue our efforts to improve our competitive 
position, to be the high-quality, low-cost producer of more and more 
goods and services. In return, the Japanese agree to what the agree 
quotes as highly significant reductions in their trade surplus and 
increases in their imports of goods and services from the United States 
and other countries. In other words, both nations have made some tough 
choices.
    We should have no illusions. We announced today a framework to 
govern specific agreements yet to be negotiated. Negotiating those 
agreements will surely be difficult. But now, at least, we have agreed 
what the outcome of these negotiations needs to be: tangible, measurable 
progress.
    I have said for some time that the United States and Japan, the two 
largest economies of the world, must strengthen our friendship. Our 
political relationship is strong; our security relationship is firm. 
These trading disputes have been corrosive, and both of us are called 
upon to change. It is essential that we put this relationship on a 
footing of mutual respect and mutual responsibility. This framework is a 
good beginning.
    As the Prime Minister said, many people worked very hard on these 
negotiations. And before I conclude my statement, I would like to 
express appreciation to people on both sides. I want to thank on the 
American side Mr. Bo Cutter, who was our lead negotiator and is the 
Deputy Director of the National Economic Council; Charlene Barshefsky, 
the Deputy U.S. Trade Representative; Roger Altman, the Deputy Secretary 
of the Treasury; and Joan Spero, the Under Secretary of State. They did 
an excellent job. They worked many long hours with their Japanese

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counterparts. I also want to thank the Japanese negotiating team, and I 
want to say a special word of appreciation to Prime Minister Miyazawa 
for his leadership here at the G-7 summit and his constant attention to 
these bilateral negotiations while they were going on. He has shown 
wisdom, determination, and genuine leadership.
    Perhaps only I and a few others know how difficult these 
negotiations have been, how many late night discussions have been 
involved, how hard so many people have tried for our two countries to 
reach across the divide that has separated us on this issue. I do not 
believe that this day would have come to pass had it not been for Prime 
Minister Miyazawa, and I thank him in a very heartfelt way. I think he 
has done a great service today for the people of Japan, the people of 
the United States, and for the principle of a free world economy.

Note: The remarks began at 10 a.m. at the Okura Hotel. A tape was not 
available for verification of the content of these remarks.