[Weekly Compilation of Presidential Documents Volume 32, Number 9 (Monday, March 4, 1996)]
[Pages 365-366]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Exchange With Reporters Prior to Discussions With Prime Minister Ryutaro 
Hashimoto of Japan in Santa Monica, California

February 23, 1996

Trade Policy

    Q. Mr. President, does it help or hurt matters if trade policy is a 
campaign issue this year?
    The President. I think it should be an issue. I think it's important 
that the American people know all the facts and make their decisions. 
But let me reiterate what I said today, and let me begin by saying it's 
a great honor for me to welcome Prime Minister Hashimoto here to the 
United States. We know him well and respect and admire him for his work 
on trade on behalf of his country. And now this is his first trip here 
as Prime Minister. This will be a good opportunity for us to get better 
acquainted before I go to Japan on my state visit in April.
    Let me also say that we have a broad and deep friendship with Japan 
which encompasses far more than trade. We have a security partnership 
that has enabled us to work together to head off the North Korea nuclear 
threat, something which was an immediate threat to the security of both 
the United States and Japan. And we have worked together on issues 
ranging from terrorism to drug trafficking to global environmental 
problems.
    Now, on the trade issue let me say as I have said many times, I 
don't mind if this is an issue in the election, but it's important that 
we look at the facts and the real policy alternatives. To hear the 
debate you would think the only choice is an open market without regard 
to how other countries treat our products on the one hand, or a totally 
closed market on the other. There is another alternative which is trade 
that is both freer and fairer, and that is the policy we have pursued.
    With Japan, thanks to Prime Minister Hashimoto in his previous 
position, we have concluded 20 trade agreements. And in those areas, our 
trade with Japan has gone up 80 percent in just 3 years in ways that 
have enabled us to lower the trade deficit and to provide a broader 
range of products and services to Japanese citizens, sometimes at lower 
cost. So this has benefited both of us. There are 167,000 more Americans 
working today because of those 20 trade agreements and the good-faith 
effort that has been made in Japan to keep them. And in general, 
American exports are now growing faster than American imports for the 
first time in many years.
    So I think we should all remember that this trade is a two-way 
street. When we raise barriers to others, they can also raise barriers 
to us. The goal should be freer trade and fairer trade, and that is one, 
but only one, part of our relationship.
    This is good for America. And here in California it's certainly 
good. You were with me today, all of you, at the McDonnell Douglas plant 
where they were celebrating, among other things, the sales of their 
planes to Saudi Arabia.
    Q. Is it possible to resolve trade differences without confrontation 
in the future?
    The President. The answer to that I think depends, frankly, on how 
well all of us can make the new World Trade Organization work. The real 
problem with international trade dispute resolution in the past has been 
that it took so long, by the time you got an answer it almost didn't 
matter what the answer was.
    So that's why the United States and Japan and other countries have 
held back the right to make some unilateral decisions in the trade area. 
But I think all of us would rather take this out of confrontation and 
have these matters fairly resolved. And the real question I think is 
going to be whether the WTO can move not only fairly but quickly.

[[Page 366]]

Japan-U.S. Relations

    Q. Mr. Prime Minister, Mr. Buchanan has said that you will be more 
scared of him as President than of President Clinton. What do you think 
of that? And, Mr. President, your own assessment?
    Prime Minister Hashimoto. Concerning the election, that's a decision 
the American people have to make. We learn from the United States how 
important the free trading system is, and also we are promoting further 
the free trade principles. And also, we're making concrete actions for 
the elimination of regulation--or deregulation that are necessary for 
the goal of free trade. So I'm confident that the American people will 
make good decisions.
    I'm not taking any side, I must say.
    The President. Let me say, I would hope that the Japanese Prime 
Minister would never be afraid of any American President. We have a 
partnership.
    You know, let's just remember, when I became President the 
newspapers in America were full of the threat of North Korea becoming a 
nuclear power and posing dangers to Japan, to the United States, 
everyone. Because we worked with Japan and with South Korea and with 
other countries, that threat is ebbing away. The Japanese play host 
today to over 40,000 American soldiers that have helped to keep the 
peace in the Asian Pacific region, and they pay a higher percentage of 
the cost of maintaining those military installations than any other 
nation in the world where we have soldiers deployed.
    Our relationship should be one of respect and friendship, even when 
we have different opinions and different interests. It is not based on 
fear. It is based on respect and friendship. Now, we've had trade 
disputes. All I ask you to do is to look at the record that we have 
established: 20 agreements, an 80-percent increase in American exports 
under those agreements from auto parts to medical equipment to 
telecommunications equipment to California rice.
    There have been problems. We have taken these issues seriously, far 
more seriously than previous American administrations. But we have not 
attempted to approach them in an atmosphere that was based on fear or 
anger or rancor. We can be firm with each other, strong with each other; 
we can even disagree with each other. But the American people should 
know that our friendship and partnership with the Japanese in security 
matters is an important part of maintaining freedom and peace in the 
world and helps America. And Japan has lowered its trade deficit with 
America--or, our trade deficit with them--dramatically in the last 3 
years. We are moving in the right direction. Other countries should do 
as well.

Japanese Whaling

    Q. Any hope for progress on whaling? Is there any hope for progress 
on the issue of whaling that's separating the two?
    Prime Minister Hashimoto. Shall we finish the meeting right out 
here? [Laughter]
    The President. We just started--[laughter]--we haven't started.
    Thank you very much.

Note: The exchange began at 7 p.m. in the garden at the Sheraton Miramar 
Hotel. This item was not received in time for publication in the 
appropriate issue. A tape was not available for verification of the 
content of this exchange.