[Weekly Compilation of Presidential Documents Volume 31, Number 25 (Monday, June 26, 1995)]
[Pages 1067-1071]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
The President's News Conference With Prime Minister Tomiichi Murayama of 
Japan in Halifax, Canada

June 15, 1995

    The President. Good afternoon. Before turning to my meeting with 
Prime Minister Murayama let me begin by thanking Prime Minister Chretien 
and the people of Halifax for welcoming Hillary and me and our 
delegation to Canada. Even on our short boat ride across the harbor we 
could see why this city and, indeed, all of Nova Scotia are favorite 
sights for so many American tourists. I hope the important business we 
do here won't prevent us from enjoying a little of this very beautiful 
place.
    Our business began today with the meeting with Prime Minister 
Murayama, the third in the constructive dialog we began last November. 
Our discussion focused on the strength of the U.S.-Japan relationship, 
and we are determined to make it stronger still. Never have the ties 
between our nations been more important, and never have they been 
closer.
    Our two great democracies are also the world's largest economies. 
Together we make up more than 30 percent of the world's gross domestic 
product. And trade between our people is growing rapidly.
    Our security ties have never been closer. Friends and foes alike 
know the Japanese-American relationship is the most important force for 
peace and stability in the Asia-Pacific region. Every day our people 
work together on the vital challenges of our times, protecting the 
environment, responding to natural disasters, combating the deadly trade 
in illegal drugs, and fighting the terrorists who have threatened both 
our nations from abroad and from within.
    No issue is more important to our nations than stopping the spread 
of nuclear weapons. Prime Minister Murayama and I, along with our South 
Korean allies, have worked tirelessly on our strategy to stop the 
development of North Korea's nuclear program. We pledged to push forward 
with this week's important agreement to implement that strategy. Japan 
has agreed to make a significant contribution to the light-water 
reactors that will supply energy to the North Koreans without producing 
weapons-grade materials. And I thank the Prime Minister for Japan's 
ongoing commitment to the fight against weapons of mass destruction.
    The Prime Minister briefed me on plans for the upcoming meeting of 
the Asian-Pacific Economic Cooperation forum. APEC, as all of you know, 
has become an essential part of America's strategy for regional 
prosperity. Japan and the United States will work together so that 
November's meeting in Osaka sustains the momentum toward free and open 
trade in the Asia-Pacific region, achieved in Seattle and Indonesia last 
year.
    We also discussed our progress and our disagreements on trade. 
Fifteen times, since the beginning of my administration, the United 
States and Japan have concluded agreements to open markets and increase 
trade across a wide variety of products and services. The latest, 
reached just this week, offers tax and financial incentives to Americans 
who want to establish on-the-ground operations in Japan. The Prime 
Minister and I also agreed to extend the 1993 framework on trade 
negotiations, and I am optimistic that that will advance both our 
interests in free and open trade. Once again, this proves that our 
countries can and do work together to solve our disputes and enable 
American companies to better compete in the Japanese market.
    But we also, as all of you know, have real differences. The Prime 
Minister and I discussed the problem of access for U.S. airline cargo 
carriers to the Japanese market, for example. I again expressed to the 
Prime Minister my concern that Japan honor rights that

[[Page 1068]]

our carriers now have guaranteed under existing civil aviation 
agreements.
    On the difficult issue of autos and auto parts, we had a frank and 
open exchange of our views. We agreed that our negotiators should 
redouble their efforts to seek a solution to those differences when they 
meet in Geneva next week. But I made it clear that I am determined to 
carry through on my effort to open Japan's auto markets. Billions of 
dollars in American exports and thousands of American jobs are at stake. 
They depend upon our success.
    Opening these markets, as I have said repeatedly, will benefit not 
only the United States but Japanese consumers as well. I have instructed 
our negotiators to pursue every possible avenue of resolution before the 
June 28 deadline, and I remain hopeful that an acceptable, meaningful 
agreement can be reached. But if a solution cannot be found by the 
deadline, I will impose sanctions, and the United States will also 
pursue a case before the World Trade Organization.
    At times like these, it is tempting to focus only on the differences 
that bring our two nations to the negotiating table. But I ask you again 
not to lose sight of the broader truths of our relationship. Only 
decades after the end of the terrible war that pitted our people against 
each other, the United States and Japan are allies and share a profound 
commitment to democracy, security, and prosperity. Our common agenda 
embraces everything from the fight to preserve our global environment to 
the global fight against AIDS, promoting the cause of women in 
developing countries, now to working together on natural disasters like 
earthquakes, and dealing with our common concerns after Oklahoma City 
and the terrible incident in the Japanese subway with terrorism and the 
proliferation of weapons of mass destruction.
    In any relationship as broad and deep as ours, there will always be 
differences. But the United States and Japan agree, no one issue, no one 
difference, will allow us to undermine our alliance or stop us from 
pursuing our shared goal and our common interests. Our two great 
democracies will never rest in our pursuit of a better, a safer, and a 
more prosperous future for all of our people.
    Mr. Prime Minister.
    Prime Minister Murayama. In my meeting with President Clinton for a 
couple of hours, until a while ago, I engaged in a candid exchange of 
views on the present and future of Japan-U.S. relations and the stance 
that we'll take as we go to the G-7 summit meeting. And I think the 
meeting was very meaningful.
    The Japan-U.S. relations have grown over the past 50 years, since 
the end of the Second World War, and are connected by a strong bond of 
cooperation and collaboration.
    President Clinton and I confirmed that security dialog is 
progressing smoothly. Thanks to the President's cooperation, the issue 
of U.S. military bases in Okinawa has seen important progress. And the 
response to North Korea's nuclear development issue, which seemed to 
test our bilateral collaboration, has produced important results, thanks 
to the solidarity of our two countries and the Republic of Korea, and it 
is a matter that we expressed appreciation for.
    Common agenda--that is to say our cooperation from global 
perspectives--is a symbol of creative partnership between our two 
countries. We today received a joint report containing new areas of 
cooperation. And the President and I are of the view that such 
cooperation should be promoted further.
    As was mentioned earlier by the President, we also discussed the 
auto issue as well as the civil aviation issue. While the two countries 
remain apart on these issues, the President and I see eye to eye that we 
both will do our utmost to settle the issue as early as possible through 
the consultations slated for next week in Geneva. By the way, since the 
President has alluded to this matter, I should like to say that I asked 
for expeditious removal of the unilateral measures since they violate 
the rules and spirit of the World Trade Organization.
    Now, in connection with that, including the civil aviation issue, we 
both agree that Japan-U.S. relations are a bilateral relationship of 
vital importance, so much so that the auto issue and aviation issue 
should not be allowed to adversely affect the overall Japan-U.S. 
relations.

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    We'll welcome President and Mrs. Clinton as state guests in 
November. Today's meeting with the President took place at a midpoint 
between my visit to Washington, DC, earlier, in January, and his visit 
to Japan in November. I am determined to further strengthen our 
bilateral partnership in the run up to the President's visit and beyond, 
into the future.
    Lastly, I proposed to the President to hold a bilateral symposium of 
seismologists on earthquakes, in order to enable the peoples of our two 
countries who have experienced the great Hanshin earthquake and the 
Northridge earthquake, respectively, make the most of their experiences 
and the lessons. And the President has agreed to the proposal.
    Thank you.

Japan-U.S. Trade

    Q. Did you hear anything new today from Mr. Murayama to indicate a 
willingness to open Japan's auto markets, or was he inflexible? And 
also, was there anything that you heard from him that might lead you to 
extend the June 28th deadline?
    The President. The answer to the second question is, no. The answer 
to the first question is, we did not negotiate here, and we should not 
have. We had many other matters to discuss. We are both very ably 
represented by Ambassador Kantor and Minister Hashimoto and others on 
our behalf, and we have scheduled resumption of talks on the 22d and 23d 
in Geneva. So we did not discuss the details. But I did not and I will 
not agree to extend the deadline.

North Korea

    Q. On the North Korean issue, up to the U.S.-North Korean agreement 
in Malaysia, I think there was some awkwardness in relations amongst 
Japan, Korea, and the United States. I wonder how the collaborative 
relationship will be kept up in the future? And how will Japan cooperate 
with this issue, including Japan's financial cooperation and if a 
substantial payout is made, when will that be?
    Prime Minister Murayama. Well, on that question of North Korean 
nuclear development issue, as was mentioned, in fact, we did discuss a 
lot of things. The talks in Malaysia were a very difficult one, and the 
United States continued to negotiate tenaciously. And as a result, the 
U.S. and North Korea finally arrived at a joint press conference. And we 
very much--highly appreciate all those efforts and the result.
    Now, there may have been some misunderstanding amongst the parties 
in the process, but after overcoming those misunderstandings, we have 
had very close contacts between Japan and the United States as well, and 
we arrived at this agreement. So we would like to actively promote the 
outcome.
    What sort of burden shall we take? When will we come up with a 
conclusion? Those are matters that we'll have to work on and finalize in 
the days ahead. At any rate, on this matter, Japan and the United States 
at the end of the day will continue to maintain close cooperation and 
act in concert. There is an agreement on that.

Japan-U.S. Trade

    Q. Mr. President, what if the June 28th action, the imposition of 
tariffs, were to ignite a trade war with Japan? Won't that do more to 
adversely impact the jobs and the exports that you're trying to protect 
in the first place, sir?
    The President. Well, of course, we hope that won't happen. But we've 
already considered the alternatives, and I believe we're on the right 
course.
    Q. Did you get any assurance from the Prime Minister as to what the 
Japanese response might be?
    The President. We did not discuss the details of the trade issue, 
other than to talk about the firmness of the June 28th deadline and our 
common hope and our common pledge that we could have a satisfactory 
resolution on the 22d and the 23d when our negotiators meet. And of 
course, the Prime Minister very ably restated his position, as he did 
here.
    Prime Minister Murayama. With regard to June 28th, we did hear 
remarks from the President, and so, in response, I said that the 28th of 
June, we understand, is a deadline set by Section 301, but that is a 
matter of U.S. domestic law. As far as Japan is concerned, the auto 
talks are not talks conducted

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under Section 301. That is the Japanese understanding, and I stated that 
clearly.
    What is important is that we do not engage in talks with both of our 
fists raised but rather talk to each other in good faith and try to 
resolve the problem through talks and let us work on that. And 
fortunately, on the 22d and 23d of June, there will be some Cabinet 
level talks in Geneva. And through those talks we hope that we'll be 
able to come up with a solution that will be convincing to the 
international public opinion as well. And so let us do our utmost.
    Q. I'd like to ask the same question to both of you on the auto 
issue. Does that mean that each side will step one head ahead of the 
positions that you've stuck to so far? I wonder if you've engaged in 
discussions with that sort of feeling or intention to make a step 
forward.
    Prime Minister Murayama. Well, these are talks, consultations. So if 
both sides remain stuck into their principles, there will be no talks. 
We certainly have to keep our eye on overall flows or developments and 
try to walk closer to each other. Otherwise, there will be no solution. 
So where we can yield, we should yield to each other, so that we should 
find out the ways that will lead us at the end of the day to a solution. 
And let us find a way to do that. That is something that we've agreed 
on.
    The President. I have nothing to add to what the Prime Minister 
said. As you know, the objective of the United States is to open the 
market, to be free to compete. But it would have been inappropriate for 
us to engage in the details of the discussion. As I said before, we have 
both been very ably represented by people who have dealt with this issue 
for a long time. And so we reasserted the framework from which we are 
both proceeding, which I have stated and which he has stated. We did not 
negotiate the details of the agreement.
    Q. Mr. President, you said in your opening statement that the 
security relationship between the United States and Japan has never been 
stronger. But administration officials have said that frictions on trade 
could eventually lead to a deterioration of that relationship. What is 
your read of that? If this isn't solved----
    President Clinton. That is exactly why both the Prime Minister and I 
today said that we have made a common commitment not to allow our entire 
relationship to be defined by a trade difference. Even in the area of 
trade, we've made 15 agreements in 2\1/2\ years. That's pretty 
impressive. Even though the autos and auto parts are a bigger part of 
our economy, a bigger part of their economy, and a bigger part of the 
trade imbalance than all these other things combined, they are still 
significant.
    And in other areas--what Japan and South Korea and the United States 
are doing with the North Korean nuclear problem is a matter of profound 
importance to every Japanese citizen, every American citizen, and all 
the people who live in North Asia. The things that we can do together to 
deal with problems like biological and chemical weapons being used in 
terrorists attacks--we are both more vulnerable to that as we open our 
societies to the 21st century--to organized forces of destruction.
    The responsibilities we both have to the rest of the world to try to 
lead in environmental protection, in the fight against AIDS, and many 
other areas, these matters make it imperative that we maintain the 
closeness of our relationship. And we have pledged to each other today 
that however difficult our differences get in one area or the other of 
this relationship, we will not let it destroy the bonds of friendship 
and common values that are imperative for not only the American and the 
Japanese people but for the entire world.
    Prime Minister Murayama. The President has said it all, so I really 
don't have anything to add. But this cooperation based on Japan-U.S. 
relationship will contribute not only to the Asian economy but 
contributes very importantly to the world economy as well. So that is 
our common understanding. It is from that vantage point that we engage 
in cooperation on issues of global scale, which we have referred to. So 
we both have reaffirmed that we will continue cooperation in those areas 
as well.
    Q. Once again, on the auto issue, in the series of Japan-U.S. auto 
issues, you are far apart on one single issue, and that is whether the 
volunteer purchases should be increased

[[Page 1071]]

or not. I wonder if the Clinton administration plans to continue to 
stick on that position, and would the Murayama administration continue 
to refuse. If so, I think agreement or compromise will be very 
difficult. I wonder how you intend to settle the problem with emphasis 
on this one point of auto purchase plan.
    Prime Minister Murayama. As the President mentioned earlier, in our 
talks today we did not go into details of those talks because, as the 
President mentioned, we have outstanding negotiators, and on the 22d and 
23d, there will be further talks in Geneva on that issue. And including 
that aspect, I hope that there will be in-depth discussions in Geneva 
and somehow we'll be able to come up with a force that will lead us to 
the settlement of the issue through talks. So let us both make efforts 
to that end.
    The President. You have identified by your question one of the very 
key issues in the negotiations. Any answer that we give will undermine 
the possibility that a successful negotiation can occur.
    Thank you very much.

[At this point, the President was presented with a plaque from the 
children of the Kobe area in Japan to show their appreciation for help 
received from the United States after the Hanshin earthquake.]

    The President. We'll hang this in the White House as a constant 
reminder about this.

Note: The President's 98th news conference began at 4:40 p.m. at 
Dalhousie University. Prime Minister Murayama spoke in Japanese, and his 
remarks were translated by an interpreter. In his remarks, the President 
referred to Minister of International Trade and Industry Ryutaro 
Hashimoto of Japan. This item was not received in time for publication 
in the appropriate issue.