NORTHEAST ASIA PEACE AND SECURITY NETWORK ***** SPECIAL REPORT ***** April 30, 1998 The following is the complete transcript of a press conference held in Tokyo on April 28 by US Secretary of State Madeleine Albright and Japanese Foreign Minister Keizo Obuchi. The press conference followed their meeting, at which the two signed an agreement concerning Japanese provision of logistical support to US forces. [See the Daily Report for Thursday, April 30, 1998.] ----------------------------------------------- REMARKS BY SECRETARY OF STATE MADELEINE K. ALBRIGHT AT JOINT PRESS CONFERENCE WITH JAPANESE FOREIGN MINISTER OBUCHI IIKURA HOUSE April 28, 1998 Tokyo, Japan SPOKESMAN FOR JAPANESE FOREIGN MINISTRY: We would like to commence the ceremony for signing the Amending Agreement between the Government of Japan and the Government of the United States of America concerning the [inaudible] of logistic support, supplies and services between the self defense forces of Japan and the armed forces of the United States of America, and for exchanging the letters for amending its protocol -- procedural -- agreement. Sorry. First of all, we would like to begin with the signing of the agreement. [Agreement is signed] Please stand up and exchange the signed documents, please. [Documents exchanged] Next, I would like to ask General Hall and Vice Minister Akiyama to exchange letters for amending the procedural agreement. [Letters exchanged] Now, we would like to conclude the ceremony regarding the signing of the agreement and the exchange of the letters for amending the procedural agreement. Thank you very much. Now, we'll start the press conference. First there will be opening remarks, first by Foreign Minister Obuchi, then by Secretary Albright. Could I ask Foreign Minister Obuchi to say a few words? FOREIGN MINISTER OBUCHI: [in translation] Although the Secretary and I are in frequent contact over the phone, it is very meaningful to Japan-U.S. bilateral relations that we meet each other in person and hold close consultations. In our meeting today, the Secretary and I reaffirmed that it is indispensable to the peace and security of the Asia-Pacific that both Japan and the United States coordinate and develop active diplomacy in this region. On Japan-U.S. security arrangements, I provided the Secretary with an update on our work toward a new legal framework for ensuring the effectiveness of the Guidelines of the Japan-U.S. Defense Cooperation, and we have just signed the agreement amending the ACSA (Acquisition and Cross-Servicing Agreement.) On Okinawa, the Secretary and I reaffirmed that we shall continue our consultations and cooperation for steady implementation of the SACO final report. And the Secretary's visit to China will also lead to President Clinton's scheduled visit late this June or early July. We exchanged views on China. Needless to say, China has a major influence in the Asia-Pacific. We share the views that advancing bilateral relations with China by each of us -- Japan and the United States -- promotes peace and stability in this region, and that we should each our bilateral relationship with China in a peaceful and stable way. We also reaffirmed our intention to continue full consultations on situations in Asia. It is Japan, more than any other country, that is giving the most serious consideration to the Japanese economy. I briefed the Secretary on Japan's economic policy package and the deregulation measures. Secretary Albright shared with us her assessment that the substantive economic package is a bold step forward, and a very positive one, and that it would contribute to the economic recovery of Asia. With regard to the Asian economic crisis, we have affirmed our will to continue to work in coordination with each other toward the recovery of the Asian economy. The Secretary and I also discussed regional and international issues of common interest and we are planning to continue this conversation over lunch. Thank you very much. SPOKESMAN: Secretary Albright. SECRETARY ALBRIGHT: Thank you. There could be no better place to begin my trip to East Asia than here in Japan, America's leading partner, friend and long-time ally. I had a very good meeting with the Foreign Minister and look forward to having a further discussion over lunch, and then I look forward very much to seeing Prime Minister Hashimoto and the LDP Secretary General later today. I am also anticipating my visit to Sophia University as a former professor at Georgetown, another Jesuit school. I will find it interesting to compare the perspectives of Japanese and American students. During our meeting, the Foreign Minister and I had a chance to review the overall state of our relationship, which is excellent. The U.S.-Japan alliance remains the cornerstone of regional security. The amendment to the ACSA, which the Foreign Minister and I have just signed, strengthens the already superb cooperation between the U.S. military and Japan's self-defense forces. We also renewed our commitment to implement fully the recommendations of the Special Action Committee on Okinawa. We discussed the importance of responding effectively to the region's financial crisis. We talked about the need for deregulation and for more open markets, and I noted the essential contribution that Japan is making by stimulating domestic demand and by working with the IMF to help the region's troubled economies. I spoke also about the importance of the steps that the Japanese government has taken towards its own economy. We also considered the serious situation in North Korea and the need to come to a satisfactory resolution on funding for KEDO, which is vital to regional stability and peace. Finally, we exchanged views about next steps in the effort to combat global climate change and on developments in China and Russia, and we will be discussing all of these subjects even further during lunch. Later this afternoon, I hope to hear from the Prime Minister about the improvement in Japan-Russia relations, which is the product of his personal diplomacy with President Yeltsin. Given these and other examples of Japanese leadership, I strongly reaffirmed to the Foreign Minister America's support for a permanent U.N. Security Council seat for Japan. It is a sign of our times that I will see the Foreign Minister again very soon -- in fact, next week at the G-8 Ministerial in London. President Clinton and Prime Minister Hashimoto will meet the following week, and this underscores the depth and vitality of our relationship. The U.S.-Japan partnership is a source of confidence to both our countries, and because it is a partnership of democracies that love peace, it is also a source of confidence to people throughout the region --and around the world. Mr. Foreign Minister, I want to thank you again for your hospitality and I look forward to the rest of my day here, and of course, to seeing you again in London. FOREIGN MINISTER OBUCHI: Thank you. TRANSLATOR: [Secretary Albright's remarks are translated into Japanese] SPOKESMAN: Now we'll go to the question and answer session. Two questions -- two journalists from the Japanese side and two journalists from the American side. Please state your name and affiliation before you ask your question. The first question? QUESTION: [in translation] I am Ihara from Kyoto News. The question is first addressed to Secretary Albright, and that part is about your assessment of the economic policy package announced last week. You touched upon it briefly in your statement, but given the fact that it has been your position that strong recovery of Japanese economy is very important from the perspective of recovery of economies all over Asia -- in your view, do you believe that this economic package will bring about such strong recovery in Japanese economy, thus contributing to the economic recovery in Asia? And, the next question is addressed to both the Foreign Minister and Secretary Albright. Have you discussed, in the course of your discussion today, issues surrounding the expanding imbalance -- trade imbalance -- between Japan and the United States? And if there are any comments to be made on that? SECRETARY ALBRIGHT: Yes. First of all, let me say that the United States government welcomes very much the very important and bold steps that the Japanese government took in terms of its economic situation. These were substantial policy measures and we see them as positive steps, and we will have lots of time, I think, to talk about the details, but generally we see this as a -- as I've stated -- a bold and important step forward by the government. I think we have all been very much aware of the importance that Japan's economy plays within the Asian region. The whole world, including Japan's Asian neighbors, has a strong interest in seeing Japan succeed in generating a strong domestic recovery that will contribute to the recovery in Asia. FOREIGN MINISTER OBUCHI: [in translation] The second part of the question -- had to do with the U.S.-Japan trade imbalance. We have had history of trade imbalance between Japan and the United States in the post-war period, but we also do have a very good track record of having addressed all the economic issues and problems between the two countries through good cooperation between the two countries and through dialogue. So I do believe that, any issues that may arise between the United States and Japan can be addressed through such means. If I may briefly elaborate upon the background in which I believe the trade imbalance of today has been based, it is that there has been, first, a very strong and sound economic performance on the part of the U.S., which is very much exemplified by the very high pricing of U.S. stocks in the Wall Street market. And also, there has been drop in the depreciation of the yen, which have contributed to the imbalance also. And I do believe that these elements have all come together to bring about the trade imbalance today. But one way of addressing this issue at this moment is, as I have stated earlier, to stimulate the Japanese economy so that we will have increased imports in Japan. And another topic that we need to be very mindful of is being very deliberate in discussing the yen-dollar rate, in which there will be no drive toward excess exports from this country. So I think this is the situation as it stands and these are the remedies as I see them. And what has also been discussed is the need for deregulation, and by means of such measures we will be expanding -- we will be able to expand imports into this country. So I think that will also be another way of addressing the issue. SECRETARY ALBRIGHT: It's very hard to improve upon the answer that the Foreign Minister gave, because I do believe that it shows a fundamental understanding of some of the issues between the United States and Japan on trade issues, and I think his answers indicate the clear view that there -- by virtue of our excellent dialogue and our cooperation -- that these are issues that can be dealt with by our governments together. And I also think that again, it emphasizes what I have stated before, that the Japanese government took very important steps in terms of its own economy, which will not only help as far as Asia is concerned, but also the trade imbalance. And I think that, again, the statements the Foreign Minister made about deregulation and about helping to establish a sound basis for a long-lasting domestic demand-led growth here will be very helpful. SPOKESMAN: Due to time constraints, I'm afraid we can take only one more question, and can I give it to this gentleman? QUESTION: Barry Schweid, Associated Press. I'll try to keep it brief. Two brief questions. Your endorsement sounds slightly lukewarm. Does this package -- stimulus package -- go far enough? Is it the right medicine? Would the U.S. have preferred some additional actions? And in this area, this region, at least, does the defense agreement have any bearing on the Taiwan Strait situation? Thank you. SECRETARY ALBRIGHT: Well, Barry -- it must have been the long night on the airplane --but I in no way hope that my sentences or words were intended to be lukewarm. I think I used "positive," "important," "courageous" and "bold." That's about as hot as I can make it. We are very hopeful that the steps that have been taken will, in fact, accomplish what we would like and what, obviously, the Foreign Minister -- speaking on behalf of Japan -- would like, not only as far as the domestic economy is concerned, but also as far as the Asian situation is concerned. In terms of the agreement, I think that it should be noted that this is not directed at any particular region or country. It is a functional agreement for logistical assistance. SPOKESMAN: Thank you very much. ----------------------------------------------- End of transcript