[Weekly Compilation of Presidential Documents Volume 38, Number 8 (Monday, February 25, 2002)]
[Pages 253-257]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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.
    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

[[Page 254]]

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. 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.

[[Page 255]]

    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 
I intend to do.'' And he talked about nonperforming loans, the 
deflation* issue, and regulatory reform, and he placed equal emphasis on 
all three.
    * White House correction.
    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?

[[Page 256]]

    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 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.

[[Page 257]]

    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 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 Prime 
Minister's 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.