Press Conference by the Press Secretary 16 March, 1999

1. Ministry of Foreign Affairs Statement on East Timor
2. Grant Aid to Indonesia for General Elections to Support its Democratization
3. Announcement of the Japan-Canada-Malaysia Peace-keeping Operations Seminar
4. Statement by the Minister for Foreign Affairs Masahiko Koumura on the Agreement by the Afghan Parties
5. Assistance to Indonesia
6. Position of the Government of Japan on East Timor
7. Visit of First Deputy Prime Minister Yuri Maslyukov to Japan
8. Visit by Speaker of the Hungarian Parliament János Adel to Japan
9. Position of the Government of Japan on the enlargement of the North Atlantic Treaty Organization

1. Ministry of Foreign Affairs Statement on East Timor

   Press Secretary Sadaaki Numata: Good afternoon. I have several announcements with which to start. Firstly, on 12 March, we issued a statement on East Timor. As you know, as a result of the tripartite meeting held in New York among the United Nations, the Republic of Indonesia and the Republic of Portugal, there was progress on the East Timor issue which included an agreement on the means to consult the will of the East Timorese people. In fact, the method of direct ballot voting is being contemplated and the details are to be worked out by the United Nations. We are pleased with the progress in the tripartite negotiations. We welcome the efforts of each party concerned for a peaceful solution of this issue. We continue to watch the situation with close attention.

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2. Grant Aid to Indonesia for General Elections to Support its Democratization

   Press Secretary Sadaaki Numata: Secondly, again with respect to Indonesia, the Japanese Government decided today to provide grant assistance for the preparations for and implementation of the general elections in Indonesia. The grant assistance amounts to US$ 31 million, US$ 30.97 million to be exact. This will be provided through the United Nations Development Programme (UNDP), which has been coordinating international assistance for the elections. The assistance is intended to be used for the rental cost of computers for counting the votes, training cost of polling station personnel and local election management personnel, cost of special ink used for avoidance of double voting, and other purposes.

   The general elections to take place in Indonesia are a major milestone for political reform launched by the Habibie Government. This first election to take place under the new electoral system under the new election laws, is of importance in the sense that free, fair and transparent implementation of the elections will mean the realization of more appropriate representation in Indonesia. The smooth implementation of the elections is essential for political stability as well as economic recovery in Indonesia. In light of these factors, the Government of Indonesia has asked for international assistance through the UNDP, both in financial and technical matters related to the elections. It is in light of these factors that we have decided to extend this assistance. In addition to the financial assistance, the Japanese Government has already sent a Japan International Cooperation Agency (JICA) expert as an advisor to the General Election Commission (KPU) -- Komisi Pemilihan Umun in Bahasa Indonesia)-- on 14 March as personnel assistance for the implementation of the elections. We intend to consider more assistance in this area, based on advice from this expert and others.

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3. Announcement of the Japan-Canada-Malaysia Peace-keeping Operations Seminar

   Press Secretary Sadaaki Numata: The next announcement is about a seminar on UN Peace-keeping operations (PKO) to be jointly sponsored by Japan, Canada and Malaysia. The seminar is called "The Changing Face of Peacekeeping" and will be held at the Institute for International Cooperation, which is a part of JICA, in Tokyo from 22 March to 26 March under the joint auspices of the Ministry of Foreign Affairs of Japan, the Department of Foreign Affairs and International Trade of Canada, the Lester B. Pearson Canadian International Peacekeeping Training Centre, and the Ministry of Foreign Affairs of Malaysia. This is a part of the activities taking place under the framework of the ASEAN Regional Forum (ARF). It is, in fact, a part of ARF's intercessional activities. It is designed to promote confidence-building among the ARF Member Countries, as well as to provide an opportunity to improve knowledge about PKO and to further the understanding of the PKO activities conducted by the respective countries. This seminar will be attended by officials and experts from the participating Member Countries of ARF. That will be 21 countries. The participants will include PKO experts as well as policy experts from the respective Foreign Ministries, Defense Ministries, and in some cases, from the Police Authorities of the countries concerned. As far as the Japanese side is concerned, it will be attended by officials from the Ministry of Foreign Affairs, the Secretariat of the International Peace Cooperation Headquarters, which is in the Prime Minister's Office, and the Defense Agency.

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4. Statement by the Minister for Foreign Affairs Masahiko Koumura on the Agreement by the Afghan Parties

   Press Secretary Sadaaki Numata: Next, we will go to Afghanistan. Minister for Foreign Affairs Masahiko Koumura issued a statement late last night on the Agreement by the Afghan Parties, which apparently has just been reached. We welcome the fact that on 14 March, the Taliban and the anti-Taliban factions agreed on the establishment of a coalition government and other matters, which could constitute an important step toward the realization of peace in the country. Japan strongly hopes that all the factions will expedite their negotiations toward a comprehensive peace. Therefore, Japan continues to urge these factions to achieve peace.

   As Japan has already expressed its intention to host a meeting of the factions for the reconciliation of the Afghan people, it confirms its readiness to contribute to the rehabilitation and reconstruction of Afghanistan.

   I might add, in this context, that we have extended invitations for all the representatives of the conflicting factions of Afghanistan to visit Japan and to exchange views with us. The most recent example was the invitation extended to a representative of the Rabbani faction, Mr. Abdullah Abdullah, who is known as, I think, the "Vice Minister" for Foreign Affairs of that faction. I hasten to add that the Japanese Government does not recognize any of the factions legally. I will have to say "Vice Minister," in inverted commas. Before that, backwards in terms of time frame, we invited two representatives from the Taliban in January 1999; three Taliban people in July 1998; three representatives from the three anti-Taliban factions in March 1998; one representative from the Rabbani faction in June 1997; and also one Taliban representative in February 1996.

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5. Assistance to Indonesia

   Q: Concerning East Timor, does this assistance from Japan have a relation to the Miyazawa Plan?

   Mr. Numata: There is not a direct relationship. Firstly, there is one area in which we have extended financial assistance to the efforts by the parties concerned with working towards peace. In November 1998, we extended assistance amounting to US44,000 to help defray the costs of the meetings which took place in the context of the comprehensive dialogue for the East Timorese people which was being held under the initiative of United Nations Secretary General Kofi Annan. It was the fourth meeting of that dialogue and we felt that helping such a dialogue was meaningful in light of our basic position of supporting the mediation efforts by United Nations Secretary General Annan, and to encourage dialogue among the parties concerned. I refer to the assistance extended last year, but we extended similar financial assistance to help this kind of dialogue in its second and third round as well. That is one thing. The Miyazawa Initiative is another thing. Under the Miyazawa Initiative, we have been extending substantial assistance to the countries concerned. Most recently, on 12 March, we decided to extend to the Government of Indonesia, loans up to about US$ 900 million in the context of the Miyazawa Initiative. These consisted of commodity and other loans in the context of co-financing with the Asian Development Bank and the World Bank. Our contribution under the Miyazawa Initiative to Indonesia amounts to US$ 2.4 billion because we had earlier committed to extend US$ 1.5 billion worth of financing from the Japan Export-Import Bank. Thus, US$ 1.5 billion plus US$ 900 million will amount to US$ 2.4 billion under the Miyazawa Initiative for Indonesia.

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6. Position of the Government of Japan on East Timor

   Q: Concerning the future, you said you were pleased with the situation in Indonesia. There are many analyses on Japan and Indonesia. Regarding autonomy of the East Timorese people, what about their independence and will through the democratization process in Indonesia? How does the Japanese Government feel about this?

   Mr. Numata: Our position with respect to the East Timor question has consistently been as follows. Firstly, Indonesia has been effectively ruling East Timor. In light of this, the question of where East Timor belongs is a matter to be decided on through the mediation efforts by UN Secretary General Annan between the paries concerned, that is Indonesia and Portugal. We are not in a position of interjecting ourselves into that process and to pass judgment as to what the outcome might be. That is why we have been supporting this dialogue, and the financial assistance is an example of this. It is true that there has been some progress being made on this.

   You may recall that towards the end of January, the Indonesian Government made the announcement that it had decided that should it be the case that this idea for comprehensive autonomy for the East Timorese people were not accepted by the East Timorese people, the Indonesia Government would refer this question to the People's Consultative Assembly (MPR) -- Majelis Permusyawaratan Rakyat in Bahasa Indonesian -- the assembly to be formed as a result of the elections to take place later this year. On that occasion, we issued a statement in which we welcomed the Indonesian Government's efforts, including this particular decision for the solution of the East Timor issue. At the same time, we reiterated the position that we continue to hope that the East Timor issue will be solved peacefully through dialogue among those concerned in Indonesia, Portugal and East Timor. We continue to closely follow any development with great interest. That is our basic position with respect to how the will of the East Timorese people may come out and how it may be reflected. That is a matter primarily left to the parties.

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7. Visit of First Deputy Prime Minister Yuri Maslyukov to Japan

   Q: What is your assessment of the talks between First Deputy Prime Minister Yuri Maslyukov and Foreign Minister and Koumura?

   Mr. Numata: Actually, the First Deputy Prime Minister Yuri Maslyukov of the Russian Federation is still in town. There has been a rather intensive round of meetings. He had his meeting with Foreign Minister Koumura. He also had a courtesy call on Prime Minister Keizo Obuchi yesterday. With Foreign Minister Koumura, First Deputy Prime Minister Maslyukov had a full range of discussions on broad aspects of Japan-Russian Federation cooperation. The meeting that took place was the co-chairmen's meeting of the Joint Governmental Committee on Trade and Economy. They signed this agreement on the Japan-Russian Federation Youth Exchange Center. We are satisfied with that and I believe the Russian side is also satisfied with that.

   Secondly, Foreign Minister Koumura expressed our intention to continue to support the reform efforts by the Russia Federation. First Deputy Prime Minister Maslyukov expressed his appreciation for this support from Japan. Thirdly, they agreed to continue to implement and expand the Hashimoto-Yeltsin Plan. Fourthly, they discussed some of the projects in the Russian Far East, including the Sakhalin Project. They agreed to continue to monitor the development of these projects with interest. They also agreed on the importance of improving the investment climate in Russia. In that context, they agreed to work towards the early coming into force of the investment protection agreement, which is now before the Japanese Diet. They also exchanged views on the Export-Import Bank loans. They also agreed that there will be a government-to-government consultation on tourism to take place on 30 March in Moscow.

   With respect to the political side of our relationship, Foreign Minister Koumura emphasized the importance of making progress on the peace treaty negotiations. In the courtesy call made by First Deputy Prime Minister Maslyukov on Prime Minister Obuchi, Prime Minister Obuchi also expressed support for Russia's reform efforts. Prime Minister Obuchi also urged our two governments to continue to exert the maximum efforts to conclude the peace treaty by the year 2000 on the basis of the Tokyo Declaration. Prime Minister Obuchi said that if we can solve the problem, it will make it possible for us to enter into a qualitatively different kind of cooperative relationship which will encompass the full range of our relations. That will be a wonderful thing for both countries to achieve. Prime Minister Obuchi asked First Deputy Prime Minister Maslyukov to continue to work to this end.

   Prime Minister Obuchi also expressed the hope that when President Boris Yeltsin of the Russian Federation visits Japan, we will be able to translate the Moscow Declaration into reality and, thereby, strengthen our cooperation in all areas and to make further progress in the peace treaty negotiations. First Deputy Prime Minister Maslyukov responded to this by saying that Prime Minister's visit to the Russian Federation last November was indeed a very fruitful and historic event for both countries. First Deputy Prime Minister Maslyukov also said that just before he left Moscow, he talked with President Yeltsin on the phone, and President Yeltsin asked First Deputy Prime Minister Maslyukov to send his warmest regards to the Prime Minister. With respect to what Prime Minister Obuchi said about the importance of resolving the territorial question, First Deputy Prime Minister Maslyukov said that he would certainly convey this message to President Yeltsin. This all took place in the course of half a day, as First Deputy Prime Minister Maslyukov had other meetings as well. We do feel that there are important discussions taking place.

   Q: Concerning the visit of the First Deputy Prime Minister, was it expected that the emperor would have an audience for him? What is the protocol on this sort of visit?

   Mr. Numata: I don't think an audience with the emperor has ever been contemplated.

   Q: Regarding the Russian First Deputy Prime Minister's visit, we have been told that the Japanese economic situation in relation to Russia will be influenced by the territorial issue. This means that there is a link between the economic situation and the territorial issue?

   Mr. Numata: I do not think it is quite an accurate representation of where Japan stands. We have, in fact, been providing substantial economic assistance to the Russian Federation in terms of the Export-Import bank financing and other means. At the same time, we have been working very hard to advance our relationship with the Russian Federation simultaneously on two fronts. That is, to conclude the peace treaty by the year 2000, and at the same time, to foster a climate in which the peace treaty can be concluded. In fact, we have had a very broad range of cooperative programs with Russia under the Hashimoto-Yeltsin plan which includes economic cooperation in many aspects. If your question is whether we are going back to the old formula of the inseparability of politics and economics, I would have to call it a rather outdated notion.

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8. Visit by Speaker of the Hungarian Parliament János Adel to Japan

   Q: There was a talk yesterday between Prime Minister Obuchi and the Hungarian Parliament Speaker. Do you have any comments?

   Mr. Numata: Yes, I have some read-out on this. The Hungarian Parliament Speaker János Adel called on Prime Minister Obuchi yesterday. Speaker Adel is here at the invitation of the Speaker of the House of Representatives of Japan. President Adel conveyed a message from Hungarian Prime Minister Viktor Orbán to Prime Minister Obuchi that the Hungarian Prime Minister would like to invite Prime Minister Obuchi to the Republic of Hungary. In that context, he mentioned that the last time that a Prime Minister visited Hungary was in January 1990. There has not been a visit for nearly ten years. Incidently, it was Prime Minister Toshiki Kaifu who visited Hungary in 1990. He also went on to say that there has been a very dramatic change in Hungary in the intervening years. When Prime Minister Kaifu visited Hungary, Hungary was still a member of the Warsaw Pact. It is now a member of the North Atlantic Treaty Organization (NATO). They met yesterday, so Hungary was a NATO member of three days standing at that point. Hungary's economy is developing smoothly, so he felt that Hungary's accession to the European Union (EU) may be a real possibility. At the same time, Hungary attaches importance to Japan. It is out of this sense of importance of Japan that this invitation was conveyed. Speaker Adel expressed appreciation for the support extended by Japan to Hungary in such areas as culture, education and the environment. In so doing, Speaker Adel also said that compared to about ten years ago, the nature of the relationship between Japan and Hungary has also changed from that of Hungary borrowing money from Japan to an equal and mutually beneficial relationship. In that context, he emphasized the importance of Japanese investment in Hungary. At the same time, Hungary on its part would like to develop its domestic industries, for example, small and medium enterprises, so as to be to support the activities of Japanese firms investing in Hungary.

   Prime Minister Obuchi responded by expressing his appreciation for the invitation and expressed the hope that he would be able to have an opportunity to visit Hungary. Prime Minister Obuchi said that he had visited Hungary some years ago when Hungary's political and social systems were very different. Prime Minister Obuchi also said that although the political and security systems in Hungary have changed a great deal, he felt that the very friendly disposition of the Hungarian people remains unchanged. Prime Minister Obuchi also said that some people say that the Japanese and the Magyars, the Hungarians, may have been related at some time in the distant past. Prime Minister Obuchi said he himself felt very close to Hungary.

   Prime Minister Obuchi also referred to Ambassador Kazuo Nukazawa of Japan in Hungary who is a very well-known economist and was a very active staff member of Keidanren. Prime Minister Obuchi said that Ambassador Nukazawa is a most competent and suitable person to work for the development of the Japan-Hungary relationship. It was in view of these qualities of Mr. Nukazawa, that Prime Minister Obuchi himself appointed him to be the Ambassor in Hungary when Prime Minister Obuchi was the Foreign Minister. Prime Minister Obuchi expressed the hope that Ambassador Nukazawa will do as good a job as the Hungarian Ambassador in Tokyo. That is the full read-out.

   Q: Is there any expectation for the Hungarian economic policy on the part of the Japanese Government?

   Mr. Numata: I do not think Prime Minister Obuchi went into these details. It was a brief call of about 15 minutes. The main messages were the message of friendship, the message of change on the part of Hungary and the expectations for the further development of the Japan-Hungarian relationship, reciprocated by Prime Minister Obuchi's message of his own affection for Hungary. I do not think they went into other details.

   Q: Is there any reality that Prime Minister Obuchi will visit Hungary?

   Mr. Numata: Let us hope that friendship will prevail. At this point, I do not think we can talk about any specific date.

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9. Position of the Government of Japan on the enlargement of the North Atlantic Treaty Organization

   Q: Concerning NATO enlargement, what is the Japanese position on this? What is the opinion of this enlargement and how it will affect Russia?

   Mr. Numata: Firstly, with respect to this particular enlargement which was announced last week, on 12 March, we do feel that it is an important development. We do feel that it is a very important part of the whole European integration process. At the same time, there does remain the question of those countries which wish to join NATO about whom the decision is yet to be made. I believe there is going to be a NATO summit in Washington, DC in April on the occasion of the 50th Anniversary of NATO. I understand that the NATO leaders will discuss the question of possible applicants to NATO's membership. We will continue to watch that with interest. With respect to Russia, the Permanent Consultative Council, I believe, is functioning in terms of Russia and the NATO members airing out their concerns -- if there are concerns. We do hope that all these arrangements will function smoothly.

   Q: So, the NATO enlargement won't affect the flexibility of Russia? What about position of Russia on the territorial issue?

   Mr. Numata: Concerning which territorial issue?

   Q: Japan's.

   Mr. Numata: I think that is the kind of topic which could best be reserved for a seminar on global geopolitics. Perhaps this press conference may not be an appropriate occasion for that. Let me say that when the question of NATO enlargment was being very actively discussed about three years ago on the Atlantic scene, as it were -- if I may speak a bit personally --I happened to be observing it in London. I was very much interested. There was quite a bit of interest in Japan as well, as to how all these developments might evolve. There was a considerable degree of debate at the time about the pros and cons of NATO enlargement. As far as Russia was concerned, there was this establishment of the Permanent Consultative Council, which I believe is functioning. The first step of NATO enlargement has taken place. There remain some questions as to which other countries may join NATO. On that, we are not a direct party to either the negotiations or the dialogue. Russia may have a rather keen interest in it. I do not think we tend to see it these days in terms of its influence on our territorial issues. Again, I emphasize that perhaps that is a matter best reserved for in depth intellectual discussions elsewhere.

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