Press Conference by the Press Secretary 21 May, 1999

1. Visit to Japan by President Alberto Fujimori of the Republic of Peru
2. Opening of the Japan-Russia Youth Exchange Center (Obuchi-Yeltsin Center)
3. Statement by Minister for Foreign Affairs Masahiko Koumura on the approval of new Prime Minister Sergei Stepashin of the Russian Federation
4. Negotiations for the peace treaty between Japan and the Russian Federation
5. Japanese assistance for development in the Republic of Peru
6. Japanese assistance to the Palestinian people

1. Visit to Japan by President Alberto Fujimori of the Republic of Peru

   Deputy Press Secretary Masaki Okada: Good afternoon. As you might know, President Alberto Fujimori of the Republic of Peru is visiting in Japan as an official guest. On 19 May, the day before yesterday, President Fujimori held talks with Prime Minister Keizo Obuchi. At the talks, Prime Minister Obuchi expressed his satisfaction in having President Fujimori as an official guest in the year of the centenary of Japanese emigration to Peru. President Fujimori explained that he was very happy to be able to visit Japan in such a commemorative year as the Peruvian President as well as a Japanese-Peruvian. As Her Imperial Highness Princess Sayako is going to participate in the centenary ceremony to be held in Peru, Prime Minister Obuchi requested the Peruvian side to take all necessary security measures. Prime Minister Obuchi reiterated our gratitude for the enormous efforts made by President Fujimori in solving the incident, namely the occupation by terrorists of our embassy in Lima two years ago. He further expressed his high evaluation of and respect for the achievements of President Fujimori for the peace and development of Peru, such as the solution of the border issue with the Republic of Ecuador and economic development. President Fujimori expressed his thanks for the cooperation extended by Japan for the development of Peru and requested further Japanese cooperation. Prime Minister Obuchi, on his part, requested Peru to cooperate with the Korean Peninsula Energy Development Organization (KEDO) for the purpose of peace and stability in the Asia-Pacific region, in particular because Peru is now a member of the Asia Pacific Economic Cooperation (APEC). President Fujimori said he would examine this issue with a view to making a contribution in one way or another.

   Apart from the leaders meeting, we also had the meeting of both Foreign Ministers yesterday. Minister for Foreign Affairs Masahiko Koumura referred to the centenary of the Japanese emigration to Peru and requested to take all necessary security measures. Foreign Minister Fernando de Trazegnies of the Republic of Peru responded by saying Peru will make utmost efforts to make the ceremony successful and to take all measures necessary for security. As for the Japanese cooperation to Peru, Foreign Minister Koumura explained that Japan intends to change somewhat the portfolio of our assistance to Peru commensurate with the development of the Peruvian economy. That means a shift, step-by-step, from grant assistance to loan assistance. There will be, however, as Foreign Minister Koumura explained, no change in the active stance of the Japanese in assisting Peru. Foreign Minister Trazegnies expressed his understanding of this change to the Japanese aid policy, provided that this shift would take place step-by-step. Foreign Minister Trazegnies also expressed his sincere gratitude for the Japanese donation of US$610,000 to support the demining operations along the border with Ecuador. This donation was announced when the border issue with Ecuador was resolved last week. President Fujimori and his suite are staying in Japan until tomorrow.

   Related Information (Japan-Peru Relations)
   
2. Opening of the Japan-Russia Youth Exchange Center (Obuchi-Yeltsin Center)

   Deputy Press Secretary Masaki Okada: My second statement relates to the Japan-Russia Youth Exchange Center. Today, the Japan-Russia Youth Exchange Center, the so-called Obuchi-Yeltsin Center, which is the secretariat of the Japan-Russia Youth Exchange Committee, was opened in Tokyo in accordance with the Agreement between the Government of Japan and the Government of the Russian Federation concerning the Establishment of the Japan-Russia Youth Exchange Center Committee, signed on 15 March this year between Foreign Minister Koumura and Chairman Viktor Ivanovich Denikin of the Federal Committee for Youth Affairs of Russia. The establishment of the Center was first suggested by Prime Minister Obuchi at the Japan-Russia Summit meeting in November last year, with a view to drastically expanding the human exchange between the two countries at a grassroots level, and President Boris Yeltsin of the Russian Federation agreed. It is expected that the opening of the Center will greatly expand future exchanges between the two countries. For the time being, the Center will be operated on a Japanese contribution of about 1.92 billion yen and intends to implement new youth exchange programs on the order of 1,000 young people.

   Related Information (Japan-Russia Relations)
   
3. Statement by Minister for Foreign Affairs Masahiko Koumura on the approval of new Prime Minister Sergei Stepashin of the Russian Federation

   Deputy Press Secretary Masaki Okada: In this connection, I would like to add some comments. Mr. Sergei Stepashin was approved by the Russian Parliament as the new Prime Minister with an overwhelming majority and he officially assumed the Prime Minister's office. On this occasion, we would like to express our heartfelt congratulations to President Yeltsin and the Russian people. New Prime Minister Stepashin has been involved in Russian domestic affairs for a long time and is renowned as a strong politician. He also has the strong confidence of President Yeltsin as we understand. We therefore think that the new Cabinet, under the guidance of President Yeltsin, will continue to promote a reform policy. As for the new Cabinet's policy towards Japan, we were already informed by the Russian side that there will be no change. We would like to continue our efforts with a view to promoting our relations with Russia in all fields, including the realization of the agreement at Krasnoyarsk. Regarding the visit by Foreign Minister Koumura to Russia, which is now foreseen to take place toward the end of this month, we expect a frank exchange of views will take place with the Russian side.

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4. Negotiations for the peace treaty between Japan and the Russian Federation

   Q: Regarding this recent agreement between Russia and Japan to sign this treaty by the year 2000, in light of the unstable political situation in Russia now, is Japan still hoping to sign a peace treaty?

   Mr. Okada: There is no disagreement between the Russian side and Japanese side. We have the task to finish our negotiations by the end of the year 2000 to conclude the peace treaty between our two countries and normalize our relations. Under the instruction of both leaders, President Yeltsin and Prime Minister Obuchi, both Foreign Ministers and also the Deputy Foreign Ministers have been making tremendous efforts. We still continue this very enhanced form of efforts between the two countries and we hope that we can really materialize our efforts by the target date.

   Related Information (Japan-Russia Relations)
   
5. Japanese assistance for development in the Republic of Peru

   Q: You explained that there is a shift in the priority of the kind of assistance which will be given to Peru in the coming years. Instead of giving grants-in-aid, credits will be given from now on denominated in yen. I would like to know, with the most specific points, the details of this agreement, for example, when will it be implemented? You say no substantive change will be made in the assistance, but this shift is a bit difficult.

   Mr. Okada: As you know, there are many different kinds of assistance. In our Government, we usually talk about grant assistance and technical assistance. Technical assistance is also a sort of grant assistance. In addition to that, when it comes to the large-size projects, we usually extend soft loans by the Overseas Economic Cooperation Fund (OECF). Generally speaking, we understand that the recipients of the grant shall be the low-income countries. Also, internationally, there is a sort of standard and the upper limitation of the per capita income for the eligibility for the grant assistance is, as far as I understand, approximately US$1,500 per capita. Now we understand that the per capita income of Peru was nearly US$2,500 in the year 1997. Therefore we think that the situation has developed enough for us to shift our forms of assistance to Peru from grant to loan. Grants are necessary for low-income countries or least-developed countries because they are still not capable of smoothly paying back any of the credit, but in case a country has become stronger in terms of economic capability, we think it is more appropriate to extend assistance in the form of a loan so that they should take into account the cost of the projects so that there can be a sort of rationalization of their projects and so on. That is what we have been doing until now, and we would like to apply this principle also to our assistance to Peru in the future. That does not mean that from today onward we will only extend a loan, but we undertake this shift on a step-by-step basis.

   Q: When will we see the changes?

   Mr. Okada: In the near future. We are already talking with the Peruvian side concerning our loan. We will gradually shift to loans, but I cannot tell you about concrete time schedules.

   Q: Two days ago, Mr. Kaifu mentioned something which is important for Peru. He said that Japan is studying the possibility of again sending JICA staff to work on the ground in Peru. This was stopped some time ago, as far as we know, because of security concerns. Can you tell us if the Ministry of Foreign Affairs is dealing with this possibility? When might they return the JICA staff?

   Mr. Okada: I am not informed of the details of the talks with former Prime Minister Toshiki Kaifu. However it is true that we withdrew all Japan International Cooperation Agency (JICA) long-term experts when the incident took place some time ago. There are no JICA long-term experts now in Peru and that is very detrimental to the implementation of our assistance. We are now considering the resumption of our stationing of JICA experts in Peru. That is what we are going to further examine.

   Q: You are studying this at this moment. Do you know when the results will be announced?

   Mr. Okada: I cannot tell you as I am not informed of the details.

   Q: Regarding the security of Princess Sayako, you said that you are very concerned with the trip and that Peru should take all possible measures to avoid any incident, but on the Japanese side, are you dealing with this trip in a special manner?

   Mr. Okada: We are very confident of the measures which the Peruvian Government told us they would take. However quite recently we received a sort of blackmail attempt via telephone so we are a little bit concerned for the time being. We renewed the request for the Peruvian side to take the security measures.

   Q: This is happening in Peru?

   Mr. Okada: Yes.

   Related Information (Japan-Peru Relations)
   
6. Japanese assistance to the Palestinian people

   Q: Is there any discussion now in the Japanese Government to extend more economic assistance to the Palestinian side?

   Mr. Okada: Last year, upon calls from the international community, we expressed our readiness to extend a further US$200 million in the coming years. We are now in the process of materializing our commitments. In addition to that commitment, for the time being, we do not think it is necessary to make any new commitments.

   Related Information (Japan-Middle East Relations)