[Weekly Compilation of Presidential Documents Volume 34, Number 48 (Monday, November 30, 1998)]
[Pages 2351-2355]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks Following Discussions With Prime Minister Keizo Obuchi of Japan 
and an Exchange With Reporters in Tokyo, Japan

November 20, 1998

    Prime Minister Keizo Obuchi. Just now I have finished the meeting 
with President Clinton which lasted for about an hour and a half. Japan 
and the United States are allies bonded together with shared values. It 
is my pleasure to receive President Clinton in Japan less than 2 months 
after our first summit meeting in New York. And I regard it as testimony 
to the close cooperation and coordination between the two countries.
    The President invited me to officially visit the U.S. during the 
Golden Week holidays next year, and I accepted it with great pleasure.
    In today's summit meeting, the President and I exchanged views on a 
wide range of topics including international situation and the world 
economy. Regarding North Korea, we had a substantive exchange of views 
on matters including KEDO, the suspected underground construction of 
nuclear facilities, and missile issues. We confirmed that the two 
countries will maintain our close consultation with each other on 
various levels and will take a coordinated posture among Japan, South 
Korea, and the United States toward North Korea.
    The President and I also consulted on major international issues 
including Russia and China. We reaffirmed our two countries' 
contribution to the global peace and security which goes beyond our 
bilateral relations. And I told the President--would extend assistance 
to the Palestinians up to some $200 million in the next 2 years in order 
to accelerate the momentum for the Middle East peace process created by 
the Wye River agreement in which President Clinton took an instrumental 
role.
    With regard to Central America, which was stricken by Hurricane 
Mitch, I explained to the President about Japan's assistance to those 
countries. And the President and I also confirmed that the two countries 
will make closer cooperation toward the early realization of U.N. 
Security Council's reform.
    The President and I welcomed the enhancement of the cooperation 
between Japan and the United States to stabilize the world economy. We 
are both pleased with the joint announcement of the Asian growth and 
recovery initiative, and we reaffirmed our cooperation in the area of 
strengthening the global financial system.
    The President and I also agreed to continue the constructive dialog 
on the economic management of the two countries. In this context, I 
explained to the President that recognizing the critical importance of 
Japan's economic recovery for the economic stability and prosperity in 
Asia, as well as in the world, Japan is simply implementing measures 
necessary for the revitalization and stabilization of its financial 
system and for its economic recovery.
    In particular, I finalized on November 16th the emergency economic 
package which aims to recover the economy. And we have also mentioned 
that the effort on the U.S. side is also to be welcomed, and we 
considered that the decision--we hope that these cooperative efforts by 
Japan and the United States will bear fruit and that the world economy 
will head for stability and recovery.
    In today's summit meeting, the President and I confirmed the 
development in Japan-U.S. cooperation on various issues with global 
implications, and I would like you to refer to the distributed paper for 
the details.
    It was a significant achievement of President Clinton visit to Japan 
this time that the President and I could reconfirm the importance of 
Japan-U.S. relations and promote the cooperation and policy coordination 
between the two countries. As Japan and the

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U.S. face numerous issues which call for their joint effort, I would 
like to maintain close consultation and cooperation with the President.
    President Clinton. Thank you very much. Let me begin by thanking 
Prime Minister Obuchi for welcoming me to Japan, for the warm 
hospitality, and for the good talks we have had yesterday and today.
    The relationship between the United States and Japan is the 
cornerstone of stability and prosperity in the Asia-Pacific region. That 
is both a point of pride and a pledge that we will act together to 
promote stability and prosperity, especially now when so many nations in 
the region are facing economic difficulties and real distress.
    To be the cornerstone of stability and prosperity, we must continue 
to carry our weight. We're going to meet our responsibilities first and 
foremost as allies. The Prime Minister and I had good discussions on 
important security issues, including our shared concerns about North 
Korea. The United States is reviewing our Korea policy to strengthen 
North Korea's compliance with its obligations, and of course, we will be 
consulting closely with Japan and others in the region as we move 
forward.
    We are also going to meet our responsibilities as democracies with a 
common sense of purpose. Today we issue a joint statement on our support 
for democracy and human rights around the world. We've agreed to 
strengthen our cooperation on the environment. We both welcome 
Argentina's decision this week to become the very first developing 
country to accept binding limits on its greenhouse gas emissions, 
following up on the historic work done by Japan at the Kyoto conference 
last year. We recognize that there is and there must be no tradeoff 
between the human right to development and the human need to breathe 
clean air, drink safe water, live a healthy life.
    We are also, I am confident, going to meet our responsibilities as 
the world's two largest economies. The United States will do its part 
with a determined policy to keep growth going, markets open to free and 
fair trade, and continued efforts to stabilize the global economy in the 
short and long term.
    Japan has made important contributions to regional stabilization, 
efforts like the Miyazawa plan; the new Asia growth and recovery 
initiative the Prime Minister announced at APEC, to help banks and 
businesses in hard-hit countries emerge from debt; the precautionary 
finance facility to help the financial contagion not spread to countries 
with good policies; and of course, Japan has committed recently 
substantial resources to repair its banking system and announced new 
plans to stimulate the economy here.
    I believe it is clearly not only in the interest of the world and 
the region but in the interest of the Japanese people for Japan to 
continue to move forward with Prime Minister Obuchi's strategy, with 
aggressive implementation of the significant bank reform legislation and 
taking the necessary steps to spur domestic demand and reignite economic 
growth. We in the United States learned a few years ago, often in 
painful fashion, that there is no substitute for decisive action to heal 
an ailing banking system so that growth can be restored.
    We also believe that it is in Japan's interest to support open trade 
and more open, deregulated markets. An overwhelming consensus emerged 
from this week's APEC summit: Protectionism is a no-growth strategy that 
offers no way out of the current economic crisis. If coupled with 
actions which lead to an artificial explosion of exports in other 
countries, in fact, it can promote a protectionist reaction there, 
further slowing growth. The longer we wait to confront this reality, the 
harder it becomes to escape.
    At APEC our nations agreed to pursue at the WTO market opening 
measures in nine critical sectors covering $1.5 trillion in global 
trade. This is an important commitment, and we will count on Japan's 
support to see it through in 1999.
    I know that there are painful choices going on throughout Asia and 
difficult challenges for Japan. I would just like to say as a friend 
that the United States wants, needs, and believes in a strong Japan; 
that in the last half century no nation has demonstrated its capacity 
for positive change more dramatically than Japan. Today, I believe Japan 
has,

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amidst all the difficulties, a win-win proposition. The steps necessary 
for the good of the Japanese people are also good for Asia and the rest 
of the world.
    As Japan works to recover its growth and stability, it will lead all 
Asia into a more prosperous and peaceful 21st century. That is a goal I 
am proud to share with Prime Minister Obuchi, and one we will be working 
together to achieve in the months ahead.
    Thank you very much.

Japanese Economic Recovery Efforts

    Q. I'd like to ask you a question about economic matters. It was the 
economic recovery--Japanese Government has been resorting to various 
measures. However, we cannot say that we have seen any positive result. 
Mr. President, how do you assess the status quo and also the measures 
that have been taken by the Japanese Government? How do you assess them?
    And also, Mr. Prime Minister, how have you been explaining to Mr. 
Clinton about the existing measures that have been taken by the 
Government and also the outlook of the recovery?
    Prime Minister Obuchi. Let me respond first. During the Japan-U.S. 
summit, I have explained to Mr. Clinton the following: We are fully 
cognizant of the fact that it is extremely critical that Japanese 
economy makes a recovery in order to ensure the economic stability and 
prosperity of Asia and the world. To this end, we have been putting top 
priority and consider this to be an urgent matter in order to implement 
necessary measures for the recovery of the economy and the financial 
system.
    And on the 16th of this month, we have presented the emergency 
economic stimulus package so that we will be able to state clearly for 
the fiscal 1999 that Japan has turned to the positive growth. And that 
means that the package includes 17 trillion yen on project basis and 
substantially--20 trillion yen, if the permanent tax reduction exceeding 
6 trillion yen is included. And these are the measures necessary for us 
to create the bright 21st century and urgent matters for the economic--
recovery--and also must take measures necessary to avoid the global 
economic risks and support Asia.
    And the third supplementary budget has to be prepared as soon as 
possible. And this means that national and regional fiscal burden would 
be exceeding 10 trillion yen. So we are going to be moving toward the 
rapid and prompt preparation of the supplementary budget as soon as 
possible so that it can pass the extraordinary Diet.
    And we believe that President Clinton has well received our efforts 
and has shown understanding and has expressed that he shall extend 
continued support towards such measures. We're very much appreciative of 
such a stand expressed by Mr. Clinton.
    Number one economic power, the United States, and number two 
economic power, Japan: we must take initiatives in order to ensure the 
prosperity and stability in Asia and Asian economy as a whole. And we 
have confirmed mutually that we shall, together, exert efforts.
    President Clinton. Let me, first of all, say I think it is unfair to 
have a negative judgment of the Government's efforts based on the fact 
that no one feels any results now. After all, Prime Minister Obuchi has 
not been in office very long. He has put together his government; he has 
passed this bank reform legislation; he has announced a plan to 
stimulate the economy with tax cuts and public investment.
    You asked how I feel about it. I would make four points. Number one, 
I think the bank reform legislation is quite good because it puts up 
public money which financial institutions can get to protect depositors, 
but only if they recycle--or, if you will, write off their bad loans and 
clean up their balance sheets so they can start to loan money again. So 
I think that, if this legislation is vigorously implemented, it will be 
a big plus.
    On the stimulus package, I think it is quite good. Whether it will 
be enough or not, I do not know, simply because the Prime Minister has 
had to change a policy that was not stimulating the economy, and 
sometimes when you have to turn a country around, it takes more than you 
think in the beginning. I don't know that.
    The third thing I would say is we believe that greater trade and 
investment will actually generate more jobs and more growth in Japan. 
And therefore, we think it's important

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to continue with the market opening mechanisms, and we have suggested 
that perhaps deregulation in the areas of telecommunications and 
airlines would generate more jobs here only because they generated far 
more jobs for us in the United States when we did it than we could have 
known.
    The last thing I'd like to say is I hope the Japanese people have 
great confidence in their country. And average citizens, the kind of 
people I talked to last night on that television show, they can help. 
This is not just for the Government alone. Average citizens, if they 
have confidence and they believe in the capacity of this country to meet 
its challenges, can help by purchasing more of the goods and services, 
more of the output of the Japan to create more jobs and stabilize this 
economy. And I would hope that they would also do that.

North Korea

    Q. Mr. President, you mentioned briefly your discussions on North 
Korea. I was wondering if you could tell us, in light of, first of all, 
a couple of reports this morning--one talks about new North Korean 
missile developments, another talks about the North Koreans requesting a 
sum of money in order for an inspection of that suspected complex--I'm 
wondering if you can give us an update on the report from your 
representative who went to the region and what specific areas you two 
discussed as far as how to approach the situation, whether you need to 
be going more toward carrots, more toward sticks, more discussions, more 
direct negotiations. Thank you.
    And I'd also like the Prime Minister, please, if he could give his 
input on that as well.
    President Clinton. First of all, I think it is important to keep in 
mind the difference between the missile program, which we have always 
been quite concerned about but over which we have no agreement with the 
North Koreans, and the agreed framework for containing the nuclear 
program.
    We're quite concerned by some of the news reports we have seen; not 
all of them, by the way, have been confirmed. But there are some 
disturbing signs there. It is true that when I sent a team into North 
Korea to talk about inspecting sites, there was some discussion of 
conditions which were completely unacceptable for such inspections. And 
I think it's fair to say that no one can be absolutely sure of whether 
the North Korean position is simply a product of economic difficulties 
so they're attempting to get more money out of various countries for 
doing what they ought to be doing anyway, or whether they really are 
moving toward a more hostile posture.
    We will evaluate that very carefully. I have appointed a former 
Defense Secretary, Bill Perry, to do a comprehensive review of our Korea 
policy and analyze all this and report back to me and to congressional 
leaders soon.
    Now, the second thing I would say is, I still believe that we are 
doing the right thing to pursue the agreed framework because we know 
that if we had not been working on that these last several years, North 
Korea would have far more nuclear material for weapons productions than 
it has because the agreed framework, in that sense, has worked.
    And in that connection, I applaud what Prime Minister Obuchi has 
done in supporting the KEDO project. And we need to continue to work 
together with our friends in South Korea, hopefully with the support of 
the good wishes of the Chinese, to try to restrain hostile developments 
in North Korea and keep working in the spirit of the agreed framework 
and to avoid destabilizing things like this missile flight over Japan, 
which disturbed us greatly.
    Prime Minister Obuchi. With respect to the North Korea issue, 
basically the United States, South Korea, and Japan should cooperate in 
trying to resolve the matter. And on this point, we have had discussions 
with the President, and I think that it has been confirmed that this 
kind of trilateral deliberations and consultations will continue.
    The North Korean missile flew over our territory and landed in the 
Pacific Ocean, but it was a very shocking experience for us. And 
therefore, in that respect, Japan would like to try to see what kind of 
cooperation Japan can extend to North Korea to these consultations and 
consultative processes. However, there are some doubts about the 
underground nuclear facilities--should the North Koreans have--and 
therefore, we are looking

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forward to the surveys and investigations which will be conducted by the 
United States and hope that that kind of a doubt will be cleared very 
soon.
    On the other hand, we have to cooperate on the KEDO project, and 
therefore, in that respect, we are trying to extend our cooperation as 
the President has just mentioned. And as Japan, we are going to be 
thinking of providing a billion dollars worth of support, and therefore, 
in that respect, we hope that such underground nuclear facilities or 
facilities that are producing nuclear material is not there in reality.
    Because if that happens, it will be very difficult for us to 
persuade the Japanese people about the kind of cooperation we would be 
able to extend to the North Koreans, and therefore, in that respect, we 
would like to ask for the understanding of the United States, and we're 
asking for the cooperation of the United States in this respect.
    In any case, we do hope that we will be able to see that North 
Koreans will be able to coordinate their efforts together with the 
people that are involved. Although in the consultation tables we are not 
included ever, we hope that the United States and South Korea will 
provide us the needed information so that we will be able to pursue our 
policies in trying to stabilize this area and bring peace and stability 
into the region.
    I'm sorry, the time is up. Thank you very much.

Note: The remarks began at 5 p.m. in the Asahi-No-Ma Room at the Akasaka 
Palace. Prime Minister Obuchi spoke in Japanese, and his remarks were 
translated by an interpreter. A tape was not available for verification 
of the content of these remarks. This item was not received in time for 
publication in the appropriate issue.