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APEC Ministerial Meetings

	Speaker :	Mr. Hiroshi Hashimoto
	Title :	Spokesperson for the Prime Minister of Japan
	Date:	22 November 1996
	Time :	14:25 -- 15:00
	Location :	Meeting Room 6, PICC Manila, Republic of the Philippines

Press Conference

22 November 1996

1. Summary of the Ministerial Meeting held in the morning
2. New items of Japan's Action Agenda
3. Bilateral meeting between the Foreign Ministers of Japan and China
4. Issues regarding the ITA
5. Issues regarding quality control standards of products
6. Agricultural product issues
7. Grant aid to China
8. Extension of visa lengths

1. Summary of the Ministerial Meeting held in the morning
   
   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: Good afternoon, ladies and gentlemen. Welcome to this briefing by the Delegation of Japan. I would like to outline very briefly the contents of the morning session of the Ministerial Meeting. Would you please refer to the distributed paper for the statement of the Japanese delegation. I would like to economize my time. I will not repeat what Minister for Foreign Affairs Yukihiko Ikeda said in this meeting. Probably you already know that from the morning session, apart from the Chair, the following countries presented the first statement: Japan, Republic of Indonesia, United States of America, Australia, Brunei Darussalam, Canada, Republic of Chile, and the People's Republic of China. All of these members greatly appreciated the Individual Action Plans, and the Collective Action Plan, and the Manila Action Plan for APEC (MAPA) itself. At the same time, certain members expressed their desires to improve the content of the Individual Action Plan in the future so that the next meeting in Canada will be very successful and meaningful. In this sense, many members expressed the importance of including concrete actions into the Individual Action Plans. Many members expressed the desire to make the upcoming World Trade Organization (WTO) Meeting in Singapore a success. At the same time, almost all the members stressed the need to strengthen relations with the private sector. There was a member who stressed the importance of the so-called "APEC way." Especially, focusing on the importance of the non-discrimination principle, and noted that uniformity should not be imposed upon the members of APEC. Overall, once again, the tone of the statement is very positive. The afternoon session already started. I hope I will have a chance to brief you on the outcome of the afternoon session some time today.

   I would like to explain about the content of Japan's Individual Action Plan. We have distributed the complete contents of the Individual Action Plan. We have also distributed to you the highlights of the Individual Action Plan, which takes Japan as far as it can possibly go at this moment in the direction of liberalization and facilitation of trade and investment. We have also distributed a much shorter document entitled "Highlights of Japan's Individual Action Plan (IAP)," which briefly outlines the changes which the IAP will effect in Japan's trade and investment system. We have distributed as well as a slightly longer document entitled "Explanatory Reference Material," which is designed to accompany the highlights and describe them in somewhat greater detail. I believe the documents are self-explanatory.

   Let me focus on how significant these measures are. I would like to do so by citing a few examples which I think are illustrative. Firms making electronic products for light bulbs for the European and American makers will find it much easier to sell to the Japanese market next year when the Japanese industrial standard is aligned with international IEC and ISO standards. Timber growers in the American Northwest are already benefitting from the ability to have their products tested inside the United States for compliance with Japanese agricultural standards, rather than having to ship their products all the way to Japan before making sure they comply. Textile manufacturers will, over the coming years, be able to use standard English language labels on their products, rather than translating every item into Japanese. I will quickly tell you that there are only three items which can only be labeled in English in Japan, namely silk, cotton and wool. The Government of Japan is now studying about how to increase the number of items that can be labeled in English. Importers who arrive in Tokyo have got to have their cargo cleared by the Japanese quarantine officers. The working hours for the quarantine officers used to be between 08:30 and 21:00. We have decided to prolong the working hours. Therefore, now importers arriving at Tokyo anytime between 08:30 and 23:00 will now be able to clear plant and food products -- I am not talking about passenger belongings, I am talking about the cargo foods, plants, etc -- rather than wait until the next morning. Importers will find a similar extension in Nagoya and Fukuoka, as well. Even better, importers will find that the products clearing quarantine, the company's representatives are simultaneously fulfilling customs procedures thanks to a new computerized system, reducing the time spent by both people and products at the airport. In line with the general trend among APEC countries, Japan is working out how to make it possible for business people from around the region to come to Japan more readily. Business people from many APEC economies are already taking advantage of the multiple reentry visa, and eight members of APEC are already benefitting from the non-visa treatment to fly in and out of Japan and to develop new business throughout the region. People from every APEC economy are now eligible for multiple reentry visas for 90-day stays. Japan is now considering measures which are outwardly expected to extend the period of validity of multiple reentry visas from three years to five years, making it easier for foreign nationals to reside and work in Japan. It is also welcoming tourists with open arms through simplification of procedures for travel agents to file visa applications for group tours by proxy. The Chinese people can directly benefit from the new measures and we hope that all of you will take advantage of this to come and see Japan for yourselves. Japanese themselves are also benefiting from the introduction of competitive rates and revolutionary technologies as Japan deregulates its telecommunications industry and opens up to new communication and new service providers. Enterprises, another subject, in the construction field are benefiting from Japan's movement standards based on particular materials and specifications and toward performance-based standards. This means, for example, that Japanese construction companies are becoming able to use safe and sturdy new materials and technologies sooner, rather than having to wait for official approval of every individual variety of building material, and it will ultimately beautify Japan's cities as more diverse building structures can be adopted. I am sorry to keep bothering you, but you have to remain patient, but I would like to cite a few more. One is related to the integrated next generation commerce project. Although the so-called "virtual shopping malls," which are very popular today in developed countries, already exist in Japan, the security of communications is an issue which must be resolved for conducting on-line transactions, for example, is it really safe to send a credit card number over the Internet? In the next generation of electronic commerce, such issues will be overcome and consultation will be given to modalities for securing inter-operability and interconnectivity of communications security technologies when linking Japanese virtual shopping malls with overseas virtual shopping malls. Japan will establish an Asia-Pacific Information Infrastructure Technology Center in Kobe in order to promote the establishment of this infrastructure. The center will contribute to the business facilitation through the development of technology and applications for interconnectivity and inter-operability of such networks as high data rates satellite communication networks, Internet and integrated digital services networks that operate within the APEC region. In advanced economies, experiments on such systems as ultra high-speed optical fibernets are being conducted. On the other hand, there is still not enough development for many APEC developing economies of technologies to connect and operate ordinary high-speed communications networks together which would be of real use to users. Furthermore, there is a shortage of technicians to operate such networks. In order to overcome these problems, Japan will establish a technology center and conduct joint researches and joint developments on interconnectivity and inter-operability. This scheme is also expected to induce private sector investment in the telecommunications sector. Finally, Japan hopes, by the end of the decade, to open its markets completely to computers, semicomputers, electric appliances and information technology makers throughout the region through an early consensus on the Information Technology Agreement (ITA) which will truly bring the Asia-Pacific region and the world closer together at the start of the 21st century. I would like to quickly tell you that this year's Individual Action Plan of Japan includes direct tariff reductions of the first Uruguay Round Table on 697 items which was included into the so-called Initial Actions of the Osaka Action Agenda. Having said so, I will be delighted to answer any questions which you may have.

2. New items of Japan's Action Agenda
   
   Q: Mr. Hashimoto, of the items which you have highlighted, could you tell us which ones have not already been announced or foreshadowed by the Japanese Government?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: There are many projects which are going on, therefore, it is a bit difficult to say which ones are extremely new. For example, when you talk about the alignment under the JIS and JAS and technical regulations under the Electrical Appliance and Material Control Law with the international standards, we are now under study of the preparation, so we cannot tell you exactly which items will be covered; however, what I can say is that we are now taking up around 1,000 JIS standards and we are trying to realign them with international standards. We are picking up around 500 electrical goods for realignment and so on.

   Q: I am not entirely clear. I would really like to know if there is anything new because at the moment, I have an impression that this Individual Action Plan is really just a compilation of measures which are already underway. Is there anything at all which you have specifically done for APEC and decisions actually taken rather than reviews which is in any way new as of this Action Plan?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: If we talk about the exchange of people -- I am talking about the visas -- this is an entirely new one. However, we will have to go through the procedures of amending the relevant law. As I have explained to you, the Government of Japan is going to revise the content of the multiple visa arrangement from three years to five years. I cannot tell you that we have already finished all the legal matters. But we intend to do so. So, in this sense, this is new. The establishment of the centers which I mentioned earlier -- I am talking about the integrated next generation electronic commerce development project -- this is a new idea and the establishment of a technology center for the Asia-Pacific information infrastructure is a new one. Only several days ago, we announced the simplified procedures for tourist to come in. I am talking about the availability of visas for group tours. In connection with this APEC meeting, we decided to take this action.

   As far as flexibility of labeling methods under the Household Goods Quality Labeling Law, unfortunately, I cannot name which products will be covered by this. We are now in the midst of studying this, but, it will be announced in the near future. These are related to various Japanese regulations and so forth, therefore, it takes time to complete the procedures and announce what we have done.

3. Bilateral meeting between the Foreign Ministers of Japan and China
   
   Q: The Chinese Foreign Minister will meet the Japanese Foreign Minister tomorrow. I want to know at what time, and can any agenda be disclosed now? Will the Diaoyu Islands be included in the agenda?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: The meeting between Foreign Minister Yukihiko Ikeda of Japan and Minister of Foreign Affairs Qian Qichen of the People's Republic of China will take place tomorrow afternoon. Unfortunately, because of security reasons we cannot disclose the exact time of the meeting. I am sure that those two people will not set up a detailed agenda of the meeting, but I am sure that those gentlemen will exchange views thoroughly related to the bilateral relations and some international relations so that the upcoming meeting between President Jiang Zemin of the People's Republic of China and Prime Minister Ryutaro Hashimoto of Japan will be a success. Specifically on the issue of the Senkaku Islands, I am not sure whether this issue will be taken up by the Chinese side or not, but in the past, Foreign Minister Ikeda met Foreign Minister Qian Qichen several times and, especially at the last New York meeting, both gentlemen agreed that both governments should endeavor to develop the overall bilateral relationship rather than focusing on one particular issue. Especially, I would like to remind you that next year will mark the 25th anniversary of normalization of relations between Japan and China. Both countries, I am sure, will do their best to develop the overall bilateral relationship between the two countries and the Foreign Ministers and the Prime Ministers and the Chairman will contribute to this.

4. Issues regarding the ITA
   
   Q: Japan is committed to support the ITA, but we understand that there have been reports that Malaysia is blocking finalization of the ITA. Is that true? What is Japan's response to that?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: Probably, it is not a good idea for me to say which countries or members are opposed to the idea of the ITA and so on. However, I would just like to remind you that many countries and regions in the Asia-Pacific have been exporting commodities related to information technologies. If the ITA is agreed to, those countries can really benefit from this. For example, in the case of Japan, while we have been exporting commodities in this field, at the same time we have been importing those items. The same can be said of the United States and so on. I think the ITA is beneficial for all the members of APEC so we should not hesitate about this idea. We are now stating the merits of the ITA and I hope that at this Ministerial Meeting, the Ministers can say something of the ITA.

   Q: So you are confirming that there is opposition in the Ministerial Meetings to the ITA?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: Japan is not the Chair of the Meeting. I am not sure if the Republic of the Philippines allows us to tell you that. But, what I can tell you is that it seems that some member or members have some idea on this.

   Q: Would you say that one way out of this opposition to the ITA would be to leave out the year 2000 from the final declaration?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: The ITA is now under negotiations in Geneva, therefore, APEC itself is not the forum to decide. Once the Singapore Ministerial Meeting comes and once the ITA issue is taken up at the Singapore Meeting, I am sure that many members of APEC would like to give a signal at the Singapore Meeting. So, in this sense, the members have been exchanging views on this.

   Q: What kind of signal would Japan like to see APEC giving?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: As I explained to you, the elimination of products related in this field should be realized so that all the members can benefit from this.

   Q: Does that include seeing a compromise on the date just to get the idea across?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: I cannot say, because the negotiations are going on in Geneva, and as far as this APEC is concerned, if we can give a signal to the Singapore Ministerial Meeting, the other WTO members may be impressed by this. I cannot tell you about the deadline of the negotiations.

5. Issues regarding quality control standards of products
   
   Q: I read your explanatory notes. I saw that you are really detailed and your position is very transparent in the IAP, however, I agree with the gentleman here earlier that it looks like so many trade meetings that you have had are with the U.S. Trade Representative. My questions is, in connection with the JIS, we all know that one of the problems of the developing economies with Japan is your very high quality control and high international standards. Which, of course, in many ways, the United States can meet. Do you have -- I have not read all of it yet -- but do you have a compromise plan for the developing economies of APEC to be able to meet your standards or is this part of your -- I do not want to use the word lower your standards -- but do you have a compromise position so that the developing countries can penetrate your market and meet your standards?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: Japan, in fact, started to learn about quality control from the United States. We have been doing our best to achieve the highest possible quality of goods. We consider that this is very important and we have, in this sense, no intention to lower the standards. But, the most important thing is the conformity of Japan's standards with international standards. If all the countries can apply, more or less, the same kinds of standards, we can enjoy the harmonization of standards -- I think importers and exporters can benefit from this. This is what we have been doing. We will continue to do so and we hope that the Asian exporters will be able to export more and more to the Japanese market.

6. Agricultural product issues
   
   Q: Apart from employing more quarantine officers, are all your other moves in agriculture all best effort moves, that there are no firm commitments but, from a brief reading of your agricultural references here, they are all described as "efforts will be made wherever possible?"

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: One is the prolongation of working hours of the office and we are trying to increase the number of quarantine officers. At present, there are about 700 or so and we are now in the process of forming this next year's budget and, in this connection, we have been negotiating among the Government on how to increase the specific number of quarantine officers. If you talk about timber, we recently decided to have two American organizations to conduct prior testing in the United States.

   Q: So all of the agricultural offers are merely best efforts -- efforts will be made wherever possible?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: As far as this year is concerned, yes. The Individual Action Plan is of a rotating nature. We will have to improve the content. If I remember rightly, in the morning session, more than two members of APEC stressed the need to improve the content of the individual plans in the next Canada meeting and there are no exceptions for Japan and Japan will continue to do so.

7. Grant aid to China
   
   Q: At the bilateral with China tomorrow, will there be any discussion of resumption of grant aid to China?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: What I can say is that after the formation of the second Hashimoto Government, the Government consulted with the ruling party on Japan's yen credit operations to China. We made a consensus to send a governmental mission in order to proceed with the pending yen credit package to China. But, as far as grant aid to China is concerned, the Government has yet to consult the ruling party. I think the consultation has not yet taken place.

   Q: That would need to happen before Japan can resume grant aid?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: Before we take some concrete actions, at first, the Government will consult the ruling party.

   Q: Will that happen in the near term?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: I think so.

   Q: In the next few months?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: I hope even nearer because the second Hashimoto Government has been established very recently. Now, we can consult the ruling party and so we hope that the consultations will take place soon.

   Q: Maybe by the end of this year?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: The consultations can take place anytime in the future.

   Q: You mentioned earlier in this morning's discussions that there was one country that uniformity should not be imposed -- a member said that. What topic was that in reference to?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: It is related to the principle of the Osaka Action Agenda. There are several principles but a member specifically picked up one principle and stressed the importance of that principle.

   Q: Was that in reference to the ITA?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: No, just in general terms. I would like to say that the member, as far as I understand, wants to stress the need to liberalize trade and investment on the basis of voluntary negotiations rather than the reciprocal negotiations which are typical in the WTO.

8. Extentsion of visa lengths
   
   Q: In reference to the extension of visas which you mentioned earlier, is that a new interpretation of existing law and will there be limits to the number of visas that Japan will issue? I have another question. You were saying earlier that Japan has no reservation on the ITA. But, if there are several countries in APEC that you cannot impress, can you tell us how you can impress the world at the WTO Meeting in Singapore in December?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: There are eight members in APEC to which Japan extends the so-called "non-visa treatment" to.

   Q: Eight members already, can you name them?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: If I remember rightly, Canada, the United States, Mexico, Chile, Singapore, Malaysia, Brunei and New Zealand. It doesn't include your country. Apart from that, we have been applying the so-called multiple reentry visa for business people. In the past, we applied this treatment to individual countries, but from 1 January this year, we have decided to apply a special multiple reentry visa to the APEC business people. This is applied to all the 18 APEC members including your country. The maximum stay is 90 days each year and this multiple reentry visa is valid for three years. What I have explained to you is that Japan is considering to extend that period of three years to five years.

   Q: But, my question is that is that a new interpretation of existing laws? Because I understand that Japan is very good at interpreting existing laws.

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: It is not an interpretation of the existing law. We will have to revise the existing law to change the year from three years to five years.

   Q: How about impressing the WTO when you cannot impress the 18 members of APEC?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: This Ministerial Meeting will give a significant signal to the WTO in Singapore, but I am afraid that the content of the wording itself cannot be disclosed at this moment. Up until the last moment, I am sure that the Philippine Chair is striving to prepare good wording for this.

   Q: Do you mean to say that those who have reservations can still change their minds?

   Spokesperson for the Prime Minister of Japan Hiroshi Hashimoto: There are many points that are related to the Singapore Ministerial Meeting, so I am not particularly talking about the ITA here.