Press Conference by Press Sec. 7 March 1995

Vice-Ministerial Consultations between the Foreign Ministries of Japan and the French Republic
Foreign Ministry Spokesman Terusuke Terada: Good afternoon, ladies and gentlemen. The Japan-France Vice-Ministerial Consultations will be held on 9 March in Tokyo. The Consultations will be attended on the Japanese side by Vice- Minister for Foreign Affairs Kunihiko Saito, and on the French side by Secretary General of the Ministry of Foreign Affairs Bertrand Dufourcq of the French Republic.
Invitation of journalists from the Far Eastern region of the Russian Federation
Foreign Ministry Spokesman Terusuke Terada: The Government of Japan will invite 15 young journalists from the Far Eastern region of the Russian Federation from 16 to 27 March. In this connection, may I add that this program is a part of the program entitled, Japan-Russia New Era '94, which was announced by then-Minister for Foreign Affairs Tsutomu Hata when he visited the Russian Federation in March 1994.
Draft Agreement on the Establishment of the Korean Peninsula Energy Development Organization (KEDO)
Foreign Ministry Spokesman Terusuke Terada: Today's Cabinet Meeting has authorized the Japanese delegation to sign the agreement to establish the Korean Peninsula Energy Development Organization (KEDO). Also during the Cabinet Meeting, Minister for Foreign Affairs Yohei Kono proposed and received agreement on the sum of US$3 million intended for site survey on the construction of light-water nuclear reactors in North Korea, and US$2.8 million for the operating costs of the newly created secretariat of KEDO. I intend to circulate a copy of the Statement made this morning after the Cabinet Meeting by Chief Cabinet Secretary Kozo Igarashi. I do hope that the copy will be made available before the end of this briefing session. Also, I am quite sure that you should have already a copy which shows you the elements of the draft agreement on the Korean Peninsula Energy Development Organization.

Q: Where do we go from now? You have done this draft agreement, and then you will form the KEDO with wider participation. Now, until 21 April, which I believe is six months from 21 October, is the time when you are actually supposed to begin working out the contract -- the U.S. is supposed to work out the contract with North Korea. Presumably, by that time, the North Koreans should be brought around to the idea that they will take the so-called South Korean designed reactor. Now, what do you do? Site survey is the next step?

A: The immediate next step is, of course, to sign the agreement. A signing ceremony is expected on 9 March. Then, we have to set the KEDO machinery in motion, and as you said in your question, we have to send a site survey mission, and this dispatch of a survey mission is quite important for us to determine the more-or-less approximate amount which will be involved in the construction of two light-water reactors. Then, according to the U.S.-North Korea agreed framework, it is expected as a target date to enter into the negotiation -- the negotiation should be conducted between KEDO on one hand and the North Korean authorities on the other.

Q: This site survey -- will a Japanese team be going as a Japanese team, or will it be going under the KEDO umbrella? Let me clarify the question. It is my understanding that the North Koreans may not object to a South Korean team coming under the KEDO umbrella.

A: Before the signing of this agreement, I find it rather difficult to comment on this. I simply have to say that, once this agreement is signed, there will be an executive board, which will consist of one representative from each of the original members. I think that this executive board will have to determine the details of such a site survey mission, which should be sent eventually. So, I'd rather refrain from speculating on the specifics.

Q: What will be the role of other countries -- countries outside of the executive board?

A: Of course, if you take a good look at the elements of the agreement before you -- I think the paper is self- explanatory. We are going to have, in the first place, a general conference, which is composed of representatives of all the members. There, you will see the functions of the conference. Then, you will have the executive board. As a matter of fact, we simply expect to see the three countries -- namely, Japan, the United States, and the Republic of Korea -- signing the agreement on 9 March. Therefore, they are going to be called original members of this organization. Other countries are invited to take part in the KEDO Preparatory Conference, and afterwards, they are cordially welcomed to sign the agreement, becoming full members of KEDO.

Q: The format looks a lot like the Middle East peace process, when it started. I mean, the core group, and then there are people sitting on the side, clapping. In retrospect, do you feel there was a mistake made in not specifying in the agreement the type of reactors to be given to North Korea?

A: It is so clearly stated in the elements of the draft agreement. Let me point out that this organization called KEDO intends to provide two reactors of the Korean standard nuclear plant model, so this has already been decided. If there is an objection to accepting this type of reactor, there will be no reactors offered.

Q: You are not quite satisfied with North Korea having frozen its nuclear program, they get the heavy oil, and --

A: I hate to speculate on these points that you are trying to raise. Simply, I would like to manifest our hope that we should be able to proceed with this agreement, and that the North Korean government will accept what is stipulated in this agreement.

Q: I have always been under the understanding that this agreement specifically said South Korean reactors. I heard a little bit of hedging in the back and forth. Is it true? Does it specifically say South Korean nuclear reactors?

A: Yes. On the first page of the draft before you, under the title, "Elements of the Draft Agreement," paragraph one, "Purposes of the Organization" -- it reads: "...to provide for the financing and supply of a light-water reactor project in North Korea, consisting of two reactors of the Korean standard nuclear plant model with a capacity of approximately 1,000 megawatts each."

Q: I think Mr. Witter's question probably relates to not this draft agreement -- not the KEDO thing, which is your internal stuff, but the agreed framework of 21 October. I think that is what he is referring to. Does it specify it there?

A: In that agreement, I do not think so. After all, this is a draft agreement open to other countries wishing to join KEDO. You are simply talking about the agreement between the two governments.

Q: It seems to me that even here there is a little bit of a hedge when it says, "Korean standard nuclear plant model." That model could be built anywhere based on South Korean reactor design. It seem like there is a little wiggle room, sort of a diplomatic ambiguity in this very cautiously constructed phrase.

A: At this stage, I should not make any additional comments. I am quite sure that you are very good at delving into the details.

Q: Who is going to represent the Japanese side at the signing ceremony on 9 March?

A: I think it will be Ambassador Endo who is now in New York, who has been just authorized to sign the document by today's Cabinet Meeting.

Q: Can you possibly tell us who will be representing Japan on the executive board of KEDO?

A: I will check on that.

Q: Could it be Ambassador Endo?

A: Let me tell you that Ambassador Endo has been designated representative of the Japanese Government before this organization.
Japan-Russian Federation relations
Q: I have four questions. Can you comment on the results of Foreign Minister Kozyrev's visit to Tokyo?

A: Yes. That will certainly require a rather lengthy answer. In a nutshell, we think that the meeting between Foreign Minister Kono and his Russian counterpart Minister for Foreign Affairs Nikolai Kozyrev of the Russian Federation was meaningful. So, let me explain to you why we characterize this meeting as meaningful. In the first place, this ministerial meeting took place at the present juncture when the international community's concern is focussed on the situation in Chechnya and Russia's reforms. It was, therefore, politically significant for us to have had the chance to address these questions. Now, let me be rather specific. With respect to the bilateral questions, the common position was confirmed that bilateral relations should be promoted on the basis of the 1993 Tokyo Declaration. Both sides agreed to study the possibility of expanding exchanges with the four northern islands, which would, we believe, be conducive to the amelioration of the atmosphere surrounding the negotiations on the territorial issues. One tangible result out of the talks was that the initiation of the fishing talks involving the four islands has been agreed upon. Regarding the discussions on international issues, both ministers could exchange extensive views on such matters as the United Nations, the question of nuclear weapons development in the DPRK and others. Finally, I should like to stress that the most important fact was that both ministers had talks for more than seven hours, and could deepen their personal relationship based upon mutual trust.

Q: Can you tell us who will be leading the Japanese delegation to the fishing talks?

A: The Japanese delegation will be led by Deputy Director- General of the European and Oceanic Affairs Bureau Tsuneo Nishida.

Q: Is there any schedule within the Foreign Ministry about the date of Foreign Minister Kono's return visit to Moscow?

A: I can simply say at this moment that a kind invitation was extended to Foreign Minister Kono by Russian Foreign Minister Kozyrev. It does take some time before we can reach any decision on when Foreign Minister Kono is able to make his visit to Moscow. At this moment, no decision has been taken. The bilateral talks are just now over.

Q: Were there any discussions of the KEDO project, and in particular the Russian participation in this international consortium?

A: We certainly encouraged the Government of the Russian Federation to take part in the KEDO, knowing that the Russian Government does play a very important role in this area. We do not think that any affirmative answer was given to us by Foreign Minister Kozyrev. Instead, he stated that the Government of Russia was very much interested in making available the light-water reactor of the Russian type. But in that context, may I remind you that the three Governments of the United States of America, the Republic of Korea and Japan have decided on the adoption of the light-water reactors of South Korean standard model.
Reports of increased defense spending by the People's Republic of China
Q: Can you comment on recent reports that China is going to increase its military spending?

A: We noted many news reports on this subject, but I don't think I can give you any definitive comment on this report made by the Finance Minister of the People's Republic of China. But perhaps I may be able to offer you some general comments. It is explained in the presentation of the Chinese Finance Minister that, due to the wage adjustment involving those workers in the administration and state industries, there was an increase in salaries, as well as a sharp rise in prices. This is an explanation given by the Chinese authority. In view of the statistical data which showed that last year's inflation rate in China reached as high as 21.7%, the explanation given by this report holds good. Now, I think I have to be specific on the question of defense budget increase. We made a comparison of the figures between this year's defense budget and that of last year. It is not easy for us to make an accurate assessment of the defense expenditures within the Chinese Government, but one thing which we did note is that there was an increase of 0.3%, speaking of this year's defense expenditure as against the total national budget, in comparison with the same proportion registered last year. More specifically, let me give you a figure; in 1994, the portion the defense budget occupied within the totality of the Chinese budget stood at 9.6%. This year, the same percentage stands at 9.9%. In other words, there was an increase of 0.3%. This is just a superficial assessment of the defense budget, but I need to say that the Chinese defense budget cannot be measured easily, because its budgetary structure is so different from what we have or from what European countries have. Therefore, we need more time to make a full analysis of the budget. On this occasion, I should like to make the point that we should like to see more transparency of Chinese defense posture, as well as in the Chinese military budget. We have been addressing these questions whenever we have regular meetings with the Chinese authorities.
Currency-related issues
Q: Another question, if we are done with the reactor -- this week, the dollar has really taken a beating, and the yen has gone up. Without getting into the mechanics of the exchange rate mechanism and without getting into the daily movements of the two currencies, I am wondering if there is any concern in the Japanese Government that the dollar and yen is being used as a means to sort of extract concessions from Japan in ongoing trade negotiations.

A: In the first place, let me say quite clearly that I am a humble Spokesman of the Ministry of Foreign Affairs. I am not authorized to comment on the question of exchange rate problems. I am simply instructed by the general guidelines to say that this particular question should be determined by the fundamentals of the economies of the United States and Japan. Beyond that, I am really sorry to say I cannot touch upon the question of exchange rates.

Q: Based on the fundamentals of what?

A: Of Japanese and United States' economies. That is all that I am authorized to say, particularly in this house.

Q: But it does seem that the high yen --

A: Are you soliciting my personal comments?

Q: Official comments.

A: Officially, I do not offer to you any comments whatsoever on this particular question.
50th anniversary of the end of World War II
Q: I have a question about the VJ Day, which was reported in The Washington Post recently. That story says that Japanese Government officials asked the United States and other allied countries to play down VJ Day memorial services, and specifically not to use the wording that implies calling Japan the loser. Is that true? When was that request made? What was the purpose of it?

A: To be precise with you, we took up this matter on the occasion of the Japan-United States Summit which took place in January. Prior to the Summit, you may recall that there was a meeting between Secretary of State Warren Christopher of the United States and Foreign Minister Kono. Then, both Secretary of State Christopher and Foreign Minister Kono agreed that we should deal with the events related to the 50th anniversary coolly, because poor handling of the events might give rise to certain reactions from both nations. I am quite sure that, on the basis of that understanding, the United States side is now going to organize a series of commemorative events. This is my understanding.

Q: I understand that the poor handling of events would give rise to some controversy, but why does Japan think that using the term, VJ, or Victory over Japan Day, would cause that kind of concern?

A: We do feel that we should not be kept prisoner of the past. We must recognize the fact that this year we are going to commemorate the 50th anniversary. We do have to reflect upon the past, we have to learn from the past, but at the same time, based upon the past experience, we have to make a new step toward the 21st century. This is precisely the spirit which we are trying to generate upon the 50th anniversary.
Demonstrations in front of the Ministry of Foreign Affairs
Q: When I was coming in, there were some people out in front of the Foreign Ministry building shouting with loud megaphones. I couldn't understand what they were saying because my Japanese is very bad. What was that all about?

A: I took this as a sort of a very low-level demonstration by a very much isolated element of Japanese society. In other words, this sort of debased act does not enjoy any support whatsoever of the Japanese people.

Q: What is the name of the organization?

A: I didn't pay any attention to this sort of thing.

Q: Was it right wing or left wing?

A: Right wing.

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