Press Conference by the Press Secretary 9 April 1996

1. Upcoming Second Donors' Conference on Bosnia and Herzegovina to be held in Brussels
2. Alleged smuggling of chemical weapons material from Japan to North Korea
3. Japanese policy on the resumption of normalization talks with North Korea
4. Japanese policy on recent activity in the Demilitarized Zone (DMZ) on the part of North Korea
5. Japanese policy on dialog between the parties concerned with developments on the Korean Peninsula
6. Matters relating to Japanese representation at the upcoming Second Donors' Conference on Bosnia and Herzegovina to be held in Brussels
7. Current Japan-United States negotiations on an extension of the Acquisition and Cross- servicing Agreement (ACSA)
8. Recent developments in Japan-United States bilateral relations on trade and economic matters
9. Matters regarding Japanese aid to the Palestinians
10. Matters relating to Palestinian autonomy and border restrictions maintained by the State of Israel
11. Matters relating to normalization of relations between Japan and Bosnia and Herzegovina
12. Matters relating to the Japan-United States Acquisition and Cross-servicing Agreement (ACSA)
13. Japanese policy on conformance to United Nations resolutions by the Republic of Iraq
14. Possibility of Liberal Democratic Party (LDP) attendance of inauguration ceremonies for newly-elected President Lee Teng-hui of Taiwan
15. United Nations reform and Security Council membership revision

1. Upcoming Second Donors' Conference on Bosnia and Herzegovina to be held in Brussels

   Foreign Ministry Spokesman Hiroshi Hashimoto: Good afternoon, ladies and gentlemen. The upcoming Second Donors' Conference on Bosnia and Herzegovina will be held in Brussels on 12 and 13 April. The World Bank estimates that about US$5.1 billion will be needed for rehabilitation and reconstruction of Bosnia and Herzegovina between 1996 and 1999. At the Second Donors' Conference, a concrete commitment for 1996 is expected, and the target of the commitment will be around US$1.8 billion. Last January, the Japanese Government announced the extension of US$50 million-worth of emergency reconstruction aid to Bosnia and Herzegovina through the Japan Fund established in the World Bank -- out of which, US$9 million have already been disbursed. In addition to this, last March, the Japanese Government also announced the extension of 2.5 billion yen, or around US$25 million-worth of non-project-type grant aid for balance of payments purposes. The Japanese Government is now contemplating sending high-level representatives to the Second Donors' Conference. Yesterday in Tokyo, Minister for Foreign Affairs Yukihiko Ikeda met High Representative for the Peace Implementation in Bosnia and Herzegovina Carl Bildt, the senior coordinator on Bosnia and Herzegovina aid, and stated that the Japanese Government will announce an appropriate aid package at the Second Meeting. When Japan enters the stage of implementing concrete projects, we think that the bilateral projects which will be announced at the Second Meeting should contribute to the reconciliation of the Muslim Croatian and the Serbian peoples in Bosnia and Herzegovina. In this sense, projects in such areas as electricity, transport, telecommunications, etc., which can be laid upon both entities, will be desirable. This is the announcement that I wanted to make, and I will be delighted to respond to any questions that you might have.

2. Alleged smuggling of chemical weapons material from Japan to North Korea

   Q: The Japanese police believe that North Korea, using its freighter designed for carrying humanitarian aid -- rice -- from Japan, managed to smuggle out some materials -- some chemicals or chemical weapons. What is the Japanese Government's reaction?

   A: What we know clearly is that the Japanese police have arrested one person, and have been investigating whether this particular person and his company have, in the past, smuggled the chemicals, which can be used for the manufacturing of sarin gas, etc., to North Korea. For the time being, we have to wait for the findings on the part of the National Police. This may constitute violations to the relevant laws which the Ministry for International Trade and Industry (MITI) is responsible for. We understand that MITI is also waiting until the necessary investigations are over. MITI believes that if it is necessary, it will investigate the company concerned itself. What we do not know is whether this person or someone else has illegally exported those chemical materials using the ship which carried the Japanese aid to North Korea. As far as that matter is concerned, we have to wait. Therefore, at this moment, what we can say is rather limited. We have to wait to see what the National Police find out.

3. Japanese policy on the resumption of normalization talks with North Korea

   Q: Recently, there have be a number of rather unusual moves by North Korea. For example, they claim they are scrapping the Armistice Treaty of 1954, or in Thailand there was a very suspicious case of fake dollars, etc. All these recent developments have not changed the Japanese Government's stance on resumption of normalization talks?

   A: We had better separate the issue of the talks on the normalization of relations between Japan and North Korea, and the other issues which you just pointed out. As far as Mr. Yoshimi Tanaka is concerned, the Japanese Government has already formally asked the Government of the Kingdom of Thailand to transfer him to Japan. The Government of Thailand said they first have to investigate him, so we will have to wait until this investigation is over. In any case, we understand there are no complications over this issue, so we will just wait until their procedures are over. As far as the announcement and actions which violate the Armistice Agreement on the Korean Peninsula are concerned, we are concerned about the situation, and we think that those actions and their announcement are not desirable for peace and stability. We strongly urge for self-restraint on the part of North Korean authorities. The Armistice Agreement has been contributing to preventing the deterioration of stability on the Korean Peninsula, and before eternal peace is established over there, it is necessary for all parties to abide by the Armistice Agreement. So, Japan is of the view that the North Korean authorities should abide by the Armistice Agreement. We simply do not fully know what the argumentation is about, so in this sense, we carefully watch what is happening over there. In any case, we would like to separate those new phenomenon from the issue of the talks on normalization of relations between Japan and North Korea.

4. Japanese policy on recent activity in the Demilitarized Zone (DMZ) on the part of North Korea

   Q: It was reported that Foreign Minister Ikeda this morning, after the Cabinet Meeting, said that the Japanese Government regrets recent North Korean actions in the DMZ, and will keep a close eye on the situation there. But, he also said that he does not think that the situation there will lead to any serious situations. I would like to know what the basis is for Foreign Minister Ikeda's thinking for looking at the situation optimistically?

   A: I am not aware of whether Foreign Minister Ikeda talked in an optimistic way or not. What he wanted to say is that we have not received information which may hint at the occurrence of military conflict over there. We know that three times the North Korean troops violated the Armistice Agreement, but yesterday, seemingly, stopped doing so. So, for the time being, Japan is carefully watching the situation, while asking the North Korean authorities for self-restraint. I do not think that our evaluation of the situation is optimistic. We are communicating very well with the Republic of Korea and the United States of America, and exchanging views over there.

5. Japanese policy on dialog between the parties concerned with developments on the Korean Peninsula

   Q: North Korea seems to be seeking a new peace agreement with the United States. There are lots of views stating so. By trashing the current Armistice Treaty currently instated now, what does the Japanese Government think the ideal peace settlement on the Korean Peninsula should be? Also, the Government of the Republic of Korea seems to be uneasy about North Korean efforts to improve relations with Japan while excluding the Republic of Korea. What is the Japanese Government telling the Republic of Korea?

   A: The Japanese Government is of the view that the dialog between the so-called North and South is principally necessary to establish peace on the Korean Peninsula. Therefore, some moves that are against that cause some doubts for us. The direct talks between North Korea and the United States, which may jeopardize the position of the Republic of Korea, should not be supported. Therefore, when we engage in normalization talks with North Korea, the Japanese Government closely communicates with the Republic of Korea. At the same time, we make our positions clear to the North Korean delegation that this normalization between Japan and North Korea should simultaneously contribute to peace on the Korean Peninsula.

6. Matters relating to Japanese representation at the upcoming Second Donors' Conference on Bosnia and Herzegovina to be held in Brussels

   Q: You mentioned that the Japanese Government will probably send high-ranking officials to the Second Donors' Conference. Do you mean the Foreign Minister?

   A: What I can officially say now is that we have not decided who can be sent to this conference. However, because of the Diet debate, I do not think that Foreign Minister Ikeda can physically leave Japan on 12 and 13 April.

   Q: It has been reported that Japan is going to announce aid packages worth US$180 million.

   A: As far as our announcement is concerned, please kindly wait until it is made at the Conference itself.

7. Current Japan-United States negotiations on an extension of the Acquisition and Cross-servicing Agreement (ACSA)

   Q: Regarding the Acquisition and Cross-servicing Agreement (ACSA) with the United States, I understand that an extension of this agreement is now being negotiated in preparation for next week's summit. Can you bring us up-to-date on the state of the negotiations, and if possible, explain what the new accord will look like?

   A: What I can say is very general. The Japanese Government and the Clinton Administration have been negotiating on this subject for awhile. We are at the final stage of negotiations at the working level, but still, we cannot tell you when this working-level agreement will be reached, and whether this will be reflected in the so-called joint paper to be issued by the Japanese Government and the Clinton Administration when President William Clinton of the United States of America visits Japan. I am sure that Japan and the United States are doing their utmost to reach an agreement on this.

8. Recent developments in Japan-United States bilateral relations on trade and economic matters

   Q: The focus of this summit between Prime Minister Hashimoto and President Clinton seems to be largely geared toward reaffirming the security relationship, especially in light of the situation in North Korea and China's recent military activities off the coast of Taiwan. But, can you tell me if there is any progress on any of the major economic issues at hand, or do you expect that there will be any progress on this?

   A: Basically, both the Hashimoto Government and the Clinton Administration share the same view that the bilateral relationship should be developed in a more balanced way. So, when Prime Minister Ryutaro Hashimoto and President Clinton meet, they will touch not only on the security and political subjects, but will also talk about the economic and trade issues, and the so-called bilateral cooperations on the common global agenda. Having said this, if you talk about economic and trade matters, there have been public hearings on this in the United States Congress several times in the past. Some senior officials of the Clinton Administration publicly stated that they would like to see some progress on some issues before President Clinton comes to Japan. If you talk about specific issues showing progress, such as aviation issues, very recently an agreement was reached on air cargo services. In the next stage, although the dates have not been decided, the Japanese side wants to hold talks on passenger service issues. As for insurance matters, so far the Ministry of Finance and the United States Trade Representative (USTR) are negotiating. They have not yet reached an agreement. It seems there are still points to be made clear. The talks on this issue were just over in Los Angeles, but we hope that both sides can find a mutually agreeable formula in the near future. But, if you talk about the Semiconductor Agreement and the Kodak film issue, it is very difficult to predict progress in the very near future. As far as the Kodak issue is concerned, our basic stance is that the United States should file a case with the Japan Fair Trade Commission. At the same time, the Commission is now investigating the situations surrounding the film market in Japan, and we do not think it a proper idea to hold bilateral talks under the threat of the Super 301. We hope they will understand this. As for the semiconductor issue, cooperation between Japanese and United States industries has been going very well. The Agreement itself will expire in July. We say that if the Agreement has produced tangible results, then why do we not let it expire in July, rather than extend it -- because this type of agreement will not be welcomed under the newly established World Trade Organization (WTO). Having said this, we would just like to say that, although there are issues which have not been solved, and which cannot be solved by the time of President Clinton's visit, we do not think that President Clinton and Prime Minister Hashimoto will negotiate directly in Tokyo on these issues.

   Q: You mentioned that there seem to be some prospects for progress -- one of them being aviation -- and, although no dates have been set, that Japan is interested in pursuing passenger talks. Are you at all confident that an announcement will be made that negotiations will be started on the passenger issue?

   A: I do not know whether the United States is ready to announce when we can hold talks on passenger service.

   Q: Are you hopeful that there will be an announcement by the Summit?

   A: I cannot make a comment on this now.

9. Matters regarding Japanese aid to the Palestinians

   Q: You spoke about the Japanese aid and reconstruction in Bosnia and Herzegovina. In this connection, I want to ask about aid to the Palestinians. After expanding Palestinian authority in the West Bank, are you going to increase your aid to the Palestinians?

   A: In September 1993, the Japanese Government committed itself to extending US$200 million-worth of aid to the Palestinians -- out of which already US$184 million dollars have been dispersed. We have not yet implemented the commitment, but more or less, we have been implementing this commitment well. Although I cannot tell you whether the Japanese Government is, at this particular moment, contemplating extending new aid to the Palestinians, very recently during the Summit of the Peacemakers in Egypt, we also announced aid for Palestine. You can see that by doing so, the Japanese Government is actively contributing and extending economic cooperation to the Palestinians.

10. Matters relating to Palestinian autonomy and border restrictions maintained by the State of Israel

    Q: From recent developments in the occupied areas, I gather that the Palestinians are being cornered now by two sides -- one is the Israeli side, and the other the Palestinian authority. President Arafat is on record apologizing for things done. Have you ever taken this issue of Palestinians not to be cornered by their own Palestinian authority by pressure from Israel? Do you have this kind of approach, or this kind of connection with the Palestinian authority?

    A: While the Japanese Government condemns terrorism, we basically think that to improve the social and economic environment in the area, Palestinian autonomy is necessary to prevent terrorism in the future. In this sense, the border regulations should not be excessively strict.

    Q: The border?

    A: The border restrictions. Now Israel restricts the flow of people between Israel and the occupied area.

    Q: My question was that the Israeli forces have been going to the occupied areas, which they have given the right for the Palestinian authority to control. So, now there is a double pressure or double cornering of Palestinians who take part in any demonstration, which is a democratic way of expressing things. Regarding this double-punch kind of thing, have you thought of the Japanese Government saying something to the Israelis not to enter the areas which they have already given to the Palestinian authority?

    A: What the Japanese Government can say on this is that, as I said, the economic and social environment in the occupied territory should be improved. In this sense, while we understand that Israel should take preventive measures against terrorism, on the other hand, the flow of people should be encouraged, otherwise the Palestinian people cannot manage. In that case, the border restrictions should not be excessively strict. On the particular questions you raised, the Japanese Government has not announced its positions.

    Q: Let me put it straight. Do you accept Israeli forces going back into occupied areas, which they handed over to Palestinian authority, and they also take rule and order into their own hands -- catching, imprisoning, beating Palestinians. And, this has already been done by the Palestinian authority, also.

    A: What the Japanese Government can say is that the agreement so far made between the Palestine Liberation Organization (PLO) and Israel should be observed fully.

11. Matters relating to normalization of relations between Japan and Bosnia and Herzegovina

    Q: About Bosnia, do you recognize the Bosnian Government diplomatically? Have you started negotiating? Does your ambassador in Vienna still take care of the Bosnian thing?

    A: We have established diplomatic relations in Bosnia and Herzegovina.

    Q: In Sarajevo?

    A: We do not have a full ambassador in Bosnia and Herzegovina. Our ambassador in Vienna is concurrently ambassador to Bosnia and Herzegovina.

    Q: Have you established a diplomatic room or office in Sarajevo?

    A: We have not established our office in Sarajevo, but we have established diplomatic relations with Bosnia and Herzegovina.

    Q: Do they have an ambassador here?

    A: No. The establishment of diplomatic relations with a country is one matter. To assign a particular person for a country is another.

    Q: Alright, you have no ambassadors to each other. In Sarajevo you have no ambassador.

    A: Our ambassador in Vienna is currently accredited to Bosnia and Herzegovina.

    Q: It's the previous status quo.

    A: No. In previous times, we did not recognize Bosnia and Herzegovina. Our ambassador in Vienna visited Sarajevo now and then. But, about a month ago, we formally established diplomatic relations with Bosnia and Herzegovina, and our ambassador to Vienna was formally accredited to Bosnia and Herzegovina.

    Q: And, the exact date of recognition?

    A: The Japanese Government established diplomatic relations with Bosnia and Herzegovina on 9 February 1996.

12. Matters relating to the Japan-United States Acquisition and Cross-servicing Agreement (ACSA)

    Q: Is Japan considering providing parts to the United States forces under the Security Arrangement?

    A: Are you talking about the Acquisition and Cross- servicing Agreement asked about earlier?

    Q: Yes.

    A: I cannot say much in concrete terms, because Japan and the United States are negotiating this matter. What I can say is that the negotiation is in its final stage, and that we hope we can reach an agreement soon.

13. Japanese policy on conformance to United Nations resolutions by the Republic of Iraq

    Q: We understand that the Japanese Government has a great obligation to stability and security in the Gulf region. What is the Japanese Government position toward what is going on -- the talks between Iraq and the United Nations, and various implementations of United Nations resolutions -- from Iraq's side?

    A: What we know is that there have already been talks on this issue between the United Nations and the Republic of Iraq, and that they have not reached an agreement yet. First of all, we sincerely hope that the Iraqi Government will fully abide by the United Nations resolutions. At the same time, we understand that the economic situation is deteriorating over there, and that many children and weak people are suffering from malnutrition, etc. The international society, including Japan, extends humanitarian aid for those people. We sincerely hope that the Iraqi Government can agree with the United Nations on this, so that those weak people will not need to suffer further in the future.

14. Possibility of Liberal Democratic Party (LDP) attendance of inauguration ceremonies for newly-elected President Lee Teng-hui of Taiwan

    Q: [Translated from Japanese]
    Has the Government of Japan decided who will be sent to the inauguration ceremony in May for newly elected President Lee Teng-hui of Taiwan? And, what will this person's capacity be?

    A: [Translated from Japanese]
    The Japanese Government has not received an invitation from Taiwan yet. However, the relevant parties in Japan are aware of the inauguration, and I understood that, mainly, the Liberal Democratic Party (LDP) is considering the matter.

    Q: [Translated from Japanese]
    What will the capacity of this person be?

    A: [Translated from Japanese]
    The LDP is studying the matter, and I have not heard anything in regard to capacity.

15. United Nations reform and Security Council membership revision

    Q: I think the time is right to reform the United Nations. Among the suggestions are ideas to expand Security Council membership to include Japan and Germany. But, do you think that there are other powers or states on other continents which deserve permanent membership?

    A: Japan is ready to study a proposal which says that, in addition to Japan and Germany, some developing countries from Asia, Africa, and Latin America should be included as permanent members of the Security Council. Our basic position on this issue is that there are a limited number of countries with the capability and willingness to play a global role for peace and stability of the world -- in this sense, not only Japan and Germany. In fact, there is a proposal in front of us which we are studying, that some limited members of other parts of the world should be included on the Security Council. Thank you very much.