PRESS CONFERENCE BY
THE PRIME MINISTER OF JAPAN
ON THE OCCASION OF
THE ASIA-EUROPE MEETING (ASEM) IN BANGKOK

This transcript was produced based on the simultaneous English-language interpretation provided at the time of the press conference.

1. Opening of the press conference

Initial Remarks by Prime Minister Ryutaro Hashimoto

2. Objectives of ASEM and the role of Prime Minister Hashimoto at ASEM
3. Concrete suggestions made by Prime Minister Hashimoto at ASEM
4. Future of ASEM
5. Various bilateral meetings on the occasion of ASEM

Questions and Answers

6. Japan's role in ASEM in the future as a member of the Asia-Pacific region
7. Possible agenda items in the Japan-Republic of Korea summit meeting
8. Potential for ASEM cooperation vis-a-vis global currency exchange markets
9. Regarding territorial issues
10. Comparing Japan's roles in Asia-Pacific Economic Cooperation (APEC) and ASEM
11. Outcome of ASEM in terms of liberalization of trade and investment
12. Japan's possible participation in the United Nations Security Council as a permanent member
13. Bilateral meeting with Prime Minister Li Peng of the People's Republic of China

1. Opening of the press conference

   Moderator: We shall now start the press conference given by Prime Minister Ryutaro Hashimoto. The first initial remarks by the Prime Minister.

Initial Remarks by Prime Minister Ryutaro Hashimoto

2. Objectives of ASEM and the role of Prime Minister Hashimoto at ASEM

   Prime Minister Ryutaro Hashimoto: I participated in the first Asia-Europe Meeting (ASEM), starting with the informal leaders dinner on 29 February. We have already seen the publication of the Chairman's Statement that spelled out our shared perceptions, and I am sure there has been an explanation on that document by the Chairman. I believe the most important points for the meeting, this time, is that the leaders of Asia and Europe got together for the first time, and discussed matters for the future from an equal footing. Speaking on my own role, as a leader for Asia, it was to contribute to the facilitation of the meeting, and in this regard, I believe, we have been able to conduct constructive dialogue, and it was indeed a meeting of historic significance. The first objective of ASEM was to enhance a mutual understanding between, and mutual benefits, for Asia and Europe, and the second objective was to contribute to building a post-Cold War international order through dialogue and cooperation. In that respect, it was appropriate that ASEM adopt a comprehensive approach, encompassing broad areas such as politics and security, economics, global issues and culture, amongst others. One other thing -- I tried to be very attentive to see to it that ASEM, launched by ASEAN and associates, would develop as a continuous process into the future.

3. Concrete suggestions made by Prime Minister Hashimoto at ASEM

   Prime Minister Ryutaro Hashimoto: From this vantage point, I also suggested several concrete ideas. First, I underscored the need to promote broad-ranging policy dialogue between Asia and Europe. For example, Asia and Europe should cooperate in addressing the problems of the former Yugoslavia and North Korea's nuclear development problem. Also, there can be stepped-up dialogue on United Nations reform, nuclear disarmament and non-proliferation, and global issues such as environment, narcotics, as well as the strengthening of cooperation of customs authorities. The second important aspect is the strengthening of economic relations. Together with the strengthening of the exchanges between Asia and Europe, it is very important for us to preserve and strengthen the multilateral free trading system under the World Trade Organization (WTO), and in this connection, I referred to the efforts that are being made by APEC members for trade liberalization and facilitation. The benefits of liberalization will be extended to non-APEC members on a most-favored-nation (MFN) basis. So, while we do see moves to regionalism in various parts of the world, as I pointed out, it is important to secure consistency with the WTO Agreement, and that benefits will be brought into the international community as a whole. I, in this connection, express my hope that the Europeans will engage in a serious effort to achieve open regionalism, or open regional cooperation through concrete action. Also, in order to contribute to policy dialogue for strengthening exchanges, Japan suggested engaging in research for an international outlook and infrastructure development. We have also learned the importance of the private sector in the APEC process, so we suggested that a private-sector meeting be held, and that we will also host an Economic Minister's Meeting in 1997 -- suggestions which were also accepted. The third important thing is to promote intellectual exchanges, and in this context, I suggested we build a network of think tanks so that they can react with one another in an organic manner, and to promote youth exchanges in the form of a mini-Davos meeting, and to strengthen cultural exchanges through universities and research institutes.

4. Future of ASEM

   Prime Minister Ryutaro Hashimoto: The Second ASEM meeting will be held in London in 1998, and the third meeting will be held in the Republic of Korea in the year 2000. In order to translate the ideas I referred to earlier into reality, we would like to cooperate with other participating countries in the days ahead.

5. Various bilateral meetings on the occasion of ASEM

   Prime Minister Ryutaro Hashimoto: One other important thing I would like to refer to is that the ASEM meeting provided us with valuable opportunities for meetings and exchanges amongst the twenty-six leaders of Asia and Europe. We have been able to further strengthen our friendship and also to make friends with new leaders. Yesterday, I met with Prime Minister Banharn Silpa-archa of the Kingdom of Thailand, Prime Minister Li Peng of the People's Republic of China. Today, I met with Prime Minister John Major of the United Kingdom of Great Britain and Northern Ireland, Chancellor Helmut Kohl of the Federal Republic of Germany, and President Jacques Chirac of the French Republic. Of course, these summit meetings can be characterized in different ways, but, essentially, these were useful in strengthening bilateral ties, and also to promote joint efforts to address various problems facing the international community. As the newest face amongst the leaders, I also tried to establish relations of personal trust, and I think these were all very important exchanges of views. After this press conference, I shall also exchange views in a Japan-Republic of Korea summit meeting with President Kim Young Sam of the Republic of Korea. There again, I would like to have a frank exchange of views with him on pending bilateral issues from the vantage point of further cementing friendly ties with a country with whom we share such basic values as freedom, democracy, and a market economy, as well as a security interest. I would like to reaffirm the importance of further developing Japan-Republic of Korea relations. This is all I have to say at the outset.

Questions and Answers

Moderator: We would like to begin to accept questions from you. First we would like to start from the Japanese representatives of the media who have accompanied Prime Minister Hashimoto. Please move forward to the microphone, and please give your name and affiliation.

6. Japan's role in ASEM in the future as a member of the Asia-Pacific region

   Q: On behalf of the Japanese press corps, I would like to ask one question here. At the initial beginning statement, Prime Minister, you had said that foreign policy, based on your policy, is one of "proactive approach." From your viewpoint, you have said, regarding the Japanese stance, the major stance should be laid on the Asia-Pacific Region. In the midst of this kind of circumstance, this ASEM being held in Bangkok. One question I would like to ask you is under what kind of stance does Japan further intend to cope with ASEM in the future? I would like to know the specific Japanese stance.

   A: One of the most important diplomatic relations for Japan, needless to say, is the Japan-United States relationship, and it is -- I was involved in Japan-U.S. auto consultations, and the talks were stalling in the middle. Both sides tried to plug in for their respective positions through the mass media. Also, our friends in the Asia-Pacific region, while expressing their support for Japan's stance with regard to Section 301, also expressed a very serious concern that Japan-U.S. relations not be undermined. In other words, it is not just us who believe that Japan-U.S. relations are important bilateral relations. In the Asia-Pacific, the maintenance of friendly relations between Japan and the United States would be conducive to a stable political situation in Asia-Pacific as well. This is one thing that we have learned. If anything, we tended to feel that we are somewhat apart from Asia while saying that we are a member of Asia, that we have been criticized for -- perhaps not really having our pivot in Asia. In the APEC meeting in Osaka last year, I believe that sort of doubt was dispelled. As a Chair of the APEC meeting last year, we raised the slogan of concerted unilateral action, in other words, each country would come up with its own liberalization plan and promote liberalization. Some had cast doubt on that, whether that would really work. Looking at ourselves as a member of Asia, to live up to the undertakings which we make is not something that will be forced by others on us. This is the most desirable, and to that end we persuaded the other members, and we were able to put together at the end of the day an Action Agenda. From that moment, APEC moved on from the stage of discussions and planning to the stage of action, of implementation. One of the results of this is reflected in our diplomacy, and we played the role of Chairman in a very Asian manner, showing that Japan had put its pivot in Asia. I think that it was a valuable opportunity for us to show what we are.

7. Possible agenda items in the Japan-Republic of Korea summit meeting

   Q: You said that you are going to meet the South Korean leader this evening, I am wondering if the security on the Korean Peninsula will be among the issues, and what kind of proposal are you going to make regarding the issue? Thank you.

   A: That is a very sensitive question and I would certainly assume that we are going to take up discussions on North Korea. As you know, regarding North Korea, there have been suspicions since about a year and a half ago that they have been engaged in the development of nuclear weapons, causing a great sense of fear amongst the international community. Since then, thanks to efforts by the United States, the U.S.-North Korea Agreement was achieved, and it was agreed that while North Korea will scrape its nuclear reactors, the Republic of Korea, United States and Japan would cooperate to provide light-water reactors and in the meantime, fuel oil will be supplied to secure energy for them. That process is under way today. On the other hand, through various channels, we hear that there is now a food shortage in North Korea. Providing food assistance vis-a-vis North Korea is being discussed from various angles. But, there is not yet any official request from North Korea to the United Nations for food supply. On the light-water reactor issue, Japan, the Republic of Korea and the United States should maintain close contacts and while doing so, do our best to integrate North Korea into the world community and to secure a peaceful state on the Korean Peninsula between North Korea and the Republic of Korea, and to that end we would like to maintain a close consultations with each other. That, I believe, is the sort of thing we shall discuss. The financial situation of the Korean Peninsula Energy Development Organization (KEDO) faced very difficult circumstances and Japan, recently, decided to provide US$19 million to a fund to be established under KEDO to overcome the liquidity crisis. The Republic of Korea, by frontloading their implementation, is trying to contribute importantly to this process. At the ASEM meeting, President Kim Young Sam of the Republic of Korea appealed to European leaders and also to the other Asian leaders, on the importance of the reactor issue of North Korea, on two occasions, and I think that was an important comment to be made.

8. Potential for ASEM cooperation vis-a-vis global currency exchange markets

   Q: Was there any suggestion during your discussion here in Bangkok that members of ASEM at some point be interested in the global foreign exchange markets and if so, what type of cooperation might that be?

   A: That again is a very delicate question. We got together for an opportunity for a dialogue for the first time on equal footing. We have not yet had sufficient room to discuss things like cooperation on the foreign exchange front. Should we be able to discuss that sort of matter in the future, it will not be at the leaders level, but amongst the ministers responsible for financial affairs. I believe, in the future, that sort of matter, which is a very secular matter, would not come as a topic of discussion amongst the leaders. We discussed the possibility of having finance minister meetings in the future but that is still being discussed, being studied. We had no discussions on the sort of question you asked.

9. Regarding territorial issues

   Q: This is a question regarding a territorial issue. In your meeting yesterday with Prime Minister Li Peng of China, regarding the awareness of the Senkaku Islands, I hear that there had been a clear discrepancy between the two. Fishery negotiations and so on -- I hear that it is going to be discussed in a business-like way, but the territorial issue, which would always tend to become dangerous -- I would like to know how your intend to cope with this issue, and if you intend to make any final solution on this regard.

   A: There are as you know, several territorial issues at hand. For the Japanese people, the issue of longest pending nature is the Northern Territories, and perhaps this is also the greatest issue. Apart from that, as you pointed out rightly, we also have territorial issues in other areas surrounding Japan. Japan's stance in regard to these territorial issues has been very consistent, and Japan's position, argument, has been consistent as well. But, as a result of the ratification of the United Nations Convention on the Law of the Sea, there is the setting of the Exclusive Economic Zones (EEZ), and also there are other parts that will require the drawing of territorial lines as a result of this. But, I do not wish to superimpose that issue with other territorial disputes, because there is the concern that it will only trigger unnecessary emotional problems; but at the same time, it can only prolong fisheries negotiations unduly. Our views with regard to territories have been consistent, but the ratification of the United Nations Convention on the Law of the Sea and the establishment of the Exclusive Economic Zones and the other questions of territories that overlap with these zones should be treated totally separately.

10. Comparing Japan's roles in Asia-Pacific Economic Cooperation (APEC) and ASEM

    Q: Could you please compare Japan's role in APEC and the ASEM forum? How do you balance your interest between the two fora, and do you agree with our (Thai) Prime Minister's proposal to upgrade the economic cooperation of ASEM to the level of APEC?

    A: When comparing these two gatherings, APEC and ASEM, I and surely you are aware they have significant differences. At the very beginning, APEC was launched as a meeting of economic ministers. Earlier, President Clinton of the United States of America suggested an informal leaders meeting for the first time and that meeting was held. Following that, President Soeharto of the Republic of Indonesia hosted the second informal leaders meeting and last year we hosted the third informal meeting of APEC. But, APEC meetings have always been meetings of trade and foreign ministers. Foreign and trade ministers of the host countries have chaired the meetings. Leaders meetings are, after all, informal meetings. It is only natural that attention is drawn to leaders meetings, but the core of the APEC meetings is the annual general meetings, and that the leaders were to evaluate the results achieved by these annual general meetings of APEC. That will continue to be the case in the future. In that respect, APEC is more pragmatic in nature, and as I mentioned earlier, APEC has already moved unto the stage of implementation. With participants cooperating and coordinating with each other, in the interest of this region, I am sure that the benefits and results that are produced will be extended to other countries as well outside APEC. ASEM has been launched as a gathering of leaders of Asia and Europe, and it is this leaders meeting that has started as a core of ASEM. It is true, ahead of this leaders meeting, there were foreign ministers' meetings as well as trade ministers' meetings and finance ministers meetings, but the leaders meeting has not been constrained or bound by the result of their discussions. This difference in nature between APEC and ASEM -- I am sure it should be maintained, this would be the most beneficial for all of us. Prime Minister Banharn of the Kingdom of Thailand was very outstanding in his Chairmanship of the ASEM meeting. Very skillfully, any bilateral issues that might have brought about confrontation were avoided, and he was successful in organizing a forum for cooperation for the future. There was a reference to custom authorities cooperation at the level of the heads of the custom authorities; there will be a discussion on the future cracking down on drug trafficking; and I am sure there will also be discussion of customs procedures, simplification, harmonization. The Europeans were also enjoying the benefits of trade and investment liberalization and facilitation, and we Asians would also hope that we would enjoy the benefits of progress that the Europeans would be making. I am confident that the seeds sown by Prime Minister Banharn will grow very large in the future. We have committed ourselves to support the proposal made by Prime Minister Banharn that the environmental technology center to be established in the Kingdom of Thailand can be made to benefit all the other countries as well. That would also provide benefit in this whole process.

11. Outcome of ASEM in terms of liberalization of trade and investment

    Q: You referred to it a few minutes ago, but again regarding the liberalized trade, I think that was a very important point that you have to stress. In this ASEM meeting, what kind of outcome were you able to observe in this regard and as in the future, what kind of role would it be able to play in liberalizing trade and investment?

    A: I did not state the future of a free trading system in the ASEM meeting this time. As I said, this was the first opportunity for Asia and Europe to come together on an equal footing. That was my very first objective, and without having any confrontation, the best thing was to produce an atmosphere where people could leave the conference room smiling. We did not state the future of the free trading system at this meeting. We have been promoting steps towards trade investment liberalization in the APEC process to date. How shall I put it, as Chair of APEC last year, Japan announced advanced implementation of tariff reduction on 697 items. Mostly these were items for which APEC colleagues expressed their requests. Naturally, there are some items amongst these where the benefits would flow to our European friends, and of course we did not do these reductions in response to wishes stated from our European friends. In APEC, all the countries and areas are engaged in spontaneous efforts, so likewise, we hope the European Union members will engage in efforts that will enable them also to enjoy the benefits of their own efforts. Today was the starting point, and through the efforts that we have been respectively making, we hope that regionalism will not become closed, but that efforts must continue in the days ahead to keep it open, and I believe that we will be leaving Bangkok with each one of us having a stronger determination in that respect.

12. Japan's possible participation in the United Nations Security Council as a permanent member

    Q: Mr. Prime Minister, how do you anticipate the possibility of Japan taking part in the United Nations Security Council, regarding the permanent membership of the Security Council.

    A: We are seeking three reforms in the United Nations: one is fiscal reform; the second is the reform of the United Nations Economic and Social Council (ECOSOC); and the third is the reform of the Security Council. Japan is the only country having had the experience of being bombed by nuclear weapons. All the permanent members today of the Security Council are nuclear weapon States. By gaining understanding of other countries -- Japan, as a country that has pledged under its own Constitution not to attack by force other countries, and being understood as such a country, Japan would like to gain the understanding of other countries. If, with that understanding, Japan can become a member of the Security Council, then we will be the first permanent member of the Security Council having been attacked by nuclear weapons, and as the only country with many people who have been the victims of nuclear weapons, Japan will be able to engage in efforts to eliminate nuclear weapons. There is spreading understanding within Japan, but even if Japan simply said we want to become a permanent member, we cannot become a member unless there is an understanding by many other countries around the world. Fortunately, in the international community today, there is a spreading understanding that there is need to reform, to reconstitute the United Nations Security Council. There is an increasing number of countries who say that Japan should become a permanent member. Alongside of this there are also other questions that have not really been boiled down yet, as to how there should be regional representation, etc. We cannot spend too much time on this question, and we would not hope that fiscal reform alone would go ahead. It is true that United Nations finances are difficult, and the solution to that is for those in arrears to pay up their contributions. So, in that respect, I believe there is a need for fiscal reform.

13. Bilateral meeting with Prime Minister Li Peng of the People's Republic of China

    Q: Was the issue of the tension in the Taiwan Strait touched upon in your meeting with the Chinese Prime Minister Li Peng, and if you did, what was your response?

    A: I do not think it is good for either of us to go into the specific contents of our meetings. Fortunately, there is no one today who would not express the existence of tensions in the Taiwan Strait, and we certainly also have grave concerns about those tensions, and we do hope that the both parties would deal with this matter with equanimity, with a cool head. I am not saying this to any particular person, but if the two parties involved across the strait try their best to act in a cool-headed manner, I do not think tension will rise any further. During the meeting this time, no one raised this matter as an official agenda item, but when we chatted with each other during the coffee breaks, I found out that this was a matter on everyone's mind. I hope that these views of ours would reach the ears of both parties concerned. In my meeting with the leader of the People's Republic of China, I conveyed this concern of ours. Thank you very much.

Moderator: Thank you very much, ladies and gentlemen. Unfortunately, time is up for the press conference today. This concludes the press conference with Prime Minister Ryutaro Hashimoto. Thank you.