Press Conference by Press Sec. 14 March 1995

Address by Deputy Prime Minister and Minister for Foreign Affairs Yohei Kono at the Joint Japan-U.S. Commemorative Ceremony of the Battle for Iwojima
Foreign Ministry Spokesman Terusuke Terada: Good afternoon, ladies and gentlemen. Today, at 11:00 a Joint Commemorative Ceremony for the war dead of Japan and the United States was held at Iwojima in front of the Reunion of Honor Memorial. On this occasion, an address by Deputy Prime Minister and Minister for Foreign Affairs Yohei Kono was read by a high official of this Ministry, who attended the memorial service on his behalf. Let me quote one passage from his statement: "I, as the Foreign Minister of Japan, remember again the dead of the battle for Iwojima of both Japan and the United States on this solemn occasion, and pray for the further development of the Japan-U.S. relationship towards the future."
Announcement of an Economic Action Program by the Government of the United Mexican States
Foreign Ministry Spokesman Terusuke Terada: The Government of Japan welcomes the fact that the Government of the United Mexican States announced on the evening of 9 March an "Economic Action Program" intended to stabilize foreign exchange and improve its current account, and expects that steady implementation of the Program will contribute to the restoration of a stable economy in Mexico and to a further stabilization of the world monetary market. In recognition that a stable economy of Mexico is important for the world economy, the Government of Japan has welcomed IMF's urgent and exceptional financing, and the Bank of Japan has decided to participate in the international assistance for Mexico through the Bank of International Settlement (BIS), in cooperation with the central banks of major countries.
Political delegation to North Korea
Q: Could you please sum up your basic stand on the issue of sending a delegation to North Korea?

A: Could you be more specific? Are you talking about the delegation which political parties are expected to send?

Q: Yes. That's right.

A: Now, your question is quite clear, so I can give you a clear cut answer.

Q: Thank you.

A: We are not in a position to make any comments.

Q: No comments?

A: No.
Yen credit under consideration for the Islamic Republic of Iran
Q: The Associated Press reported yesterday, quoting a diplomat in -- I believe -- Nicosia, that the Japanese Government has agreed to go forward on loans to Iran, the second round of aid. Is this true?

A: I am not aware of such a report coming from Nicosia, but let me explain the situation in which we find ourselves. We are still in the process of studying the possibility of extending the second installment of yen credit to the Government of the Islamic Republic of Iran. No decision has been taken so far. In this connection, you may perhaps recall that Ambassador Matsunaga, the envoy of the Government, went to Tehran, to talk to the President as well as the Foreign Minister of that Government. We are now waiting for the full report to be presented to us by Ambassador Matsunaga. Upon examining his report, we will approach this question of yen credit. Until that time, we are not yet in a position to say anything definite about this yen credit question.

Q: Have you received his report, and are evaluating it? Or has he not made the report?

A: Ambassador Matsunaga returned home yesterday. I don't know exactly when he is coming to the Ministry to present his report to the higher authority.

Q: Any estimate of the time frame in which the decision might be made, now that he has returned?

A: I do not have any information on that. We do not have any specific time frame for that.
Economic cooperation for the Arab Republic of Egypt
Q: How about the granting of loans to Egypt?

A: Speaking of the question of yen credit, may I remind you that the Arab Republic of Egypt is one of the rare countries which received cancellation of debt, which means we are now unable to offer fresh yen credit, because of this cancellation of credit in the past. But, taking advantage of the presidential visit, we are studying very carefully how best we can enhance our cooperation with the Government of Egypt.
Repayment of yen loans by the People's Republic of China
Q: Over the weekend, the Chinese Government made some comments on the appreciation of the yen -- the impact on debt service to Chinese loans. Is the Government of Japan reviewing its loan portfolio with China, and are there any other Asian countries which have been impacted by the rising yen?

A: We are very much aware of the fact that the People's Republic of China has been burdened with appreciating yen currency when repaying its past credit. This higher yen question should be looked at as a problem which is common to all the recipient countries of yen credit. But, let me point out a couple of things. First, ODA is normally made in the donor's own currency. Therefore, it so happens that it is subject to currency fluctuations, under the present floating exchange rate system. Secondly, it should be stressed that yen credit has a very long repayment period which is as long as, say 30 years, including normally, say, a ten year grace period. Therefore, we think it rather inappropriate to link the repayment question with the currency fluctuation problems over a short period. Now, coming back to the question of China -- certainly, when China has to repay the old portion of the yen credit, it is regrettably facing this high appreciation of the yen, but at the same time, this higher yen facilitates Japanese investment in China. Also, taking good advantage of this yen appreciation, Chinese exports are entering Japan much more easily. This is all that I should like to mention on the question of the appreciation of the yen.
Korean Peninsula Energy Development Organization (KEDO)
Q: Have the North Koreans given any tentative dates for accepting site surveys for the Korean Peninsula Energy Development Organization (KEDO)?

A: I haven't received any specific information. Simply, we are given to understand that, quite shortly, there will be another round of experts' meeting between the United States and North Korea, at the request of the KEDO executive board. I am quite sure that the question of the type of reactors will be discussed at this experts' meeting.

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