Press Conference by the Press Secretary June 6, 1997

Press conference announcements
1. New Cabinet in the French Republic
  Foreign Ministry Spokesman Hiroshi Hashimoto: A new socialist Cabinet has been formed in the French Republic under the leadership of Lionel Jospin, resulting in cohabitation. Japan hopes that there will be stability in France in terms of domestic and external policies. Regarding relations between Japan and France, there has been growing activity in the bilateral relationship under President Jacques Chirac of the Republic of France, and Japan thinks that there will basically be no change in the ongoing strengthening of the broad, cooperative relations between the countries. Japan looks forward to even greater development of Japan-French relations in the future. Furthermore, Hubert VJdrine has become appointed as the new Foreign Minister of France. Minister for Foreign Affairs Yukihiko Ikeda looks forward to establishing close contacts with him as we continue to develop Japan-French relations.
2. Organization of African Unity (OAU) Summit
  Spokesman Hashimoto: A declaration regarding reform of the United Nations Security Council was issued on 4 June at the Organization of African Unity (OAU) Summit in Harare, capital of the Republic of Zimbabwe. The contents of the declaration seem to reflect the general stance of the nations of Africa. There are some points which we see that leave much room for discussion in the course of forming a comprehensive package for the reform, such as increasing the number of Security Council seats to 26 and the inclusion of at least two African nations as permanent Security Council members. However, its views on the necessity of expanding the number of both permanent and non-permanent seats and the equality of prerogatives and powers between the current and new permanent members are worthy of positive evaluation in light of the stance of the Government of Japan. The nations of Africa exert considerable influence on discussions and decisions in the United Nations. The Government of Japan will continue to closely consult and cooperate with African nations toward the early realization of Security Council reform, paying careful attention to this declaration issued at the summit meeting of the OAU.
Japanese Official Development Assistance (ODA)
Q: Regarding the Denver Summit, I understand that Japan has already decided to reduce development assistance. How will Japan respond in discussions between the G-7 countries at the Denver Summit on development assistance?

Spokesman Hashimoto: Development assistance is traditionally an important item of discussion at the Summit. Japan has regarded this as one of the most important subjects at the G-7 Summits, and continues to do so. At the same time, because of budgetary constraints, Japan must reduce its Official Development Assistance (ODA) budget in the next fiscal year by about ten percent. The Government of Japan is determined to improve the quality of Japan's ODA, despite having to decrease the overall ODA budget in the next fiscal year. Furthermore, Japan has been informally studying which is the best way to achieve the improvement of ODA activities while adhering to reductions in the ODA budget. Budgetary reparations within the Government will formally start from the beginning of September and will be basically completed sometime in December. Therefore, between now and December, we will finalize our plan. In any case, the Government of Japan will do its best so that reductions do not negatively impact very needy areas and programs, or slow progress which has already begun.
Japanese economy
Q: Given the decision by the Government of Japan to cut spending, this could mean a slowdown in the economy. Furthermore, the United States and other G-7 members have called for Japan to boost its domestic demand and reduce its external surplus. At the Denver Summit, do you expect the other G-7 members to make similar requests? If so, how would Japan respond to such a request?

Spokesman Hashimoto: National budgetary deficit is a common disease among the industrialized countries. In the case of the United States of America, it has already started to reduce its budget. In this sense, the United States has already begun to gain some concrete results and is, therefore, ahead of Japan. If you look at the individual situations in the European Union, we understand that each country is now struggling to achieve the goal of the Maastricht Treaty. In the case of Japan, its economy suffered in the past and the Government of Japan had to utilize its budget in order to revitalize the domestic economy, but was able to allocate more money for expanding domestic demand. Unfortunately, the economy did not start to improve at an appropriate speed. Now, the Government of Japan suffers from an enormous budget deficit. Our unfortunate record is much worse than many cases in the European Union. Therefore, even if the economy starts to improve from now, the Government of Japan still must concentrate on budget reductions. I am afraid that our efforts to cut the budget will not be completed this year; we will have to maintain efforts for several years to come.

Q: There is concern that the United States will ask Japan to boost its domestic demand. On the other hand, Japan must cut spending. How would Japan convince the United States that it has measures available that will boost its economy while cutting spending at the same time?

Spokesman Hashimoto: There are several ways to tackle these issues. One way is to endeavor toward allocating needed money to more needy areas and restrict our spending in less needy areas. Therefore, despite having to cut the budget, we hope that Government programs will be more effective. Another way is that we would like to revitalize our economy through deregulation, giving private companies more freedom in their activities and greater control over their own business. However, if we deregulate our economy suddenly in all places, there will be many industries in many areas which would be hit by such programs and which would lose the opportunity to earn money. Therefore, we have to take into consideration the aspect of weaker industries and businesses. So, it is difficult for Japan to deregulate its economy. However, the Government of Japan is determined to go ahead with the deregulation plan in order to revitalize our economy without spending too much Government money for domestic purposes.

Q: Do you expect Japan's growing surplus to be an issue among other economic issues at the Denver Summit?

Spokesman Hashimoto: The Summiteers are free to discuss any issue in which they would like. If we recall the discussions which took place and that were included in the Organisation for Economic Co-operation and Development (OECD) Ministerial Report, that was not a significant issue. Also, if you recall the meetings between Prime Minister Ryutaro Hashimoto and President William Clinton of the United States of America last April, the United States side showed some concern about this and Prime Minister Hashimoto did his best to help the Americans understand the actual situation. We think that in the medium term, our trade surplus will not remain at the present stage, because of the process of restructuring of the economy. When recent figures showed an increase in the surplus, however, the United States became worried. But, Japan said that the United States should not worry because of the restructuring of its economy. So, we must probably wait for several months to see which side is accurate in its assessment of the actual reality of the situation. In this light, I personally do not think that the trade surplus of Japan will become a big issue at this upcoming Denver Summit.
Food aid to North Korea
Q: Does Japan intend to give food aid to North Korea?

Spokesman Hashimoto: In the past, Japan extended substantial food aid to North Korea. As far as this year is concerned, we are still considering the possibility of extending food aid to North Korea. Unlike last year or the year before last, the Government of Japan wants to study the various elements that are involved, and we are now studying the situation comprehensively, because we want to take into account all the necessary factors. This means that we are basically cautious about this decision.

Q: Why be cautious about food aid?

Spokesman Hashimoto: First, nobody outside North Korea really knows the actual situation inside North Korea. Secondly, we have been exchanging views with our friendly countries, e.g., the United States or the Republic of Korea, and other international organizations, e.g., the United Nations World Food Program (WFP) etc. Basically, we understand that the food situation in North Korea is bad. Therefore, we are continuing to study whether or not we should respond to the appeal issued by the United Nations Department of Humanitarian Aid (DHA). At the same time, there is the outstanding issue of the temporary return home of Japanese wives who are married to North Koreans and have been living in North Korea since around the 1960s. Furthermore, their relatives in Japan strongly wish to meet them. From a humanitarian point of view, the Government of Japan has been taking up this issue with the North Korean authorities and asking them to understand this desire, especially if those Japanese wives really wish to temporarily return to Japan for reunions with their relatives. For the Government of Japan, this is a humanitarian issue. In the absence of any positive response from the North Korean authority, the Japanese people are hesitant to extend food aid to North Korea. The Government of Japan must take into consideration the sentiments of the Japanese people. This humanitarian issue should be separated from political issues such as the normalization of Japan-North Korea relations. As far as political issues are concerned, we are of course ready to tackle such issues. But, apart from that, we think that this issue of Japanese wives should be dealt with separately and solved from a humanitarian point of view. We really hope that the North Korean authority understands what the Government of Japan has been thinking in regard to this issue, and we hope that this issue will be solved with the understanding of the North Korean authority.
Political situation in North Korea
Q: Many people feel that in the event of some sort of political change in North Korea, it is possible that many refugees could come from North Korea toward Japan? Does Japan think that the flow of refugees is a strong possibility? Does Japan have any contingency plan to deal with the possibility of a large number of refugees arriving suddenly?

Spokesman Hashimoto: The Government of Japan is of the view that Head of State Kim Jong Il is still in control in North Korea, despite facing a lot of problems related to the economy of North Korea. Therefore, the Government of Japan does not see the influx of North Korean refugees as an immediate issue. Since the establishment of North Korea, we have experienced some difficult times. However, in regard to the situation you posed in your question, the Government of Japan has been trying to prevent the occurrence of such an event through diplomatic means and by taking appropriate measures to prevent a situation such as this.

Q: Is there currently a manual, book, document, or anything currently in existence that says, despite our best efforts, if a situation arises in which refugees come Japan, this is how we would handle the situation?

Spokesman Hashimoto: I do not recall the existence of any such manuals that are related to the question you have posed.
Japan-People's Republic of China relations
Q: A spokesman of the Chinese Foreign Ministry announced that China wants to sit down and discuss the issues of the Senkaku Islands and the widening the Japan-U.S. security alliance. What is the reaction of the Japanese Government on these two points?

Spokesman Hashimoto: I am not aware of this statement to which you are referring. But, I understand the official reaction of the Government of the People's Republic of China on the Senkaku Islands and the Japan-U.S. security alliance. While Japan maintains its position that the Senkaku Islands are an integral part of Japan, the Government of China has its own view. At the same time, when Japan and the United States issued the Japan-U.S. Joint Declaration on Security, the Government of China started to be a little critical of the Joint Declaration, interpreting it as a change in the structure of the present Japan-U.S. security alliance. Knowing their anxiety, both Japan and the United States have been endeavoring to explain to the Chinese side that China should not worry about a possible change of the structure of the Japan-U.S. security alliance; we have no intention of changing it. On 7 June, an Interim report on the Review of the Japan-U.S. Guidelines on Defense Cooperation will be issued. We hope that the Government of China will then understand the intention of the Review of the Japan-U.S. Guidelines for Defense Cooperation. At the same time, regarding the specific issue that you mentioned, we hope that this hypothetical situation will not become a real issue between the parties concerned. Especially when Foreign Minister Ikeda visited Beijing to hold talks with Minister of Foreign Affairs Qian Qichen of the People's Republic of China, both sides recognized the need to improve the relationship, although we have differing views on certain issues. In regard to the Senkaku Islands, we have already been exchanging views with each other, and both sides are determined not to let this issue influence the overall relations between Japan and China.
Japan-U.S. security alliance
Q: Regarding the Japan-U.S. security alliance, there is currently much discussion over Japan providing United States troops with ballistic weapons, etc. I think that this is in conflict with the Japanese Constitution? Would this only happen in the state of an emergency?

Spokesman Hashimoto: What you are asking is closely related to the Interim Report on the Review of the Japan-U.S. Guidelines on Defense Cooperation. After we issue the report, I am ready to present Japan's view on this type of question.

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