
	Lyon Summit Information

Press Conference by Spokesman for the Delegation of Japan Hiroshi Hashimoto
on Japan's Position Toward the G-7 Summit in Lyon

Date :	27 June 1996
Time :	15:00 -- 15:42
Location:	Japanese Press Briefing Tent Lyon, France

MAJOR TOPICS

Introduction of speaker and briefing status
Moderator: Good afternoon, ladies and gentlemen. Welcome to this on-the-record briefing by the Japanese delegation. Before we begin, I would just like to remind you of the ground rules for this press conference. Today's speaker will be Foreign Ministry Press Secretary Hiroshi Hashimoto. Mr. Hashimoto is the official spokesman for the Japanese delegation to the G-7 Summit. As this is an on-the-record briefing, you may quote Mr. Hashimoto by name and title, or as the Spokesman for the Japanese Government. Mr. Hashimoto will begin with a brief statement. Following this statement, he will open the floor to questions. If you have a question, please raise your hand and wait to be recognized by the spokesman. Once you are called on, please proceed to the microphone. Please state your name and affiliation before proceeding with your question. Thank you very much, ladies and gentlemen. Let me now introduce Mr. Hiroshi Hashimoto, Spokesman for the Japanese Delegation.
Spokesman's opening statement
Spokesman for the Delegation of Japan Hiroshi Hashimoto: Good afternoon, ladies and gentlemen, and welcome to this press conference. Before I explain Japan's position toward the upcoming G-7 Summit, I would just like to comment briefly on Japan's position on terrorism, in light of the recent tragic incident at the U.S. military base in Saudi Arabia. Yesterday,Prime Minister Ryutaro Hashimoto made a statement in which he explained that Japan takes the stance that under no circumstance can terrorism be justified, and is resolute in condemning all forms of terrorism. It is deeply regrettable that there has been such a great loss of life, and Japan wishes to extend its deepest sympathies and condolences to the victims and bereaved families and to the peoples of the United States and Saudi Arabia. Japan views such an attack as intolerable, and condemns all terrorist activities. Prime Minister Ryutaro Hashimoto, after attending the G-7 Summits as Minister of Finance and Minister of International Trade and Industry, looks forward this year to his first opportunity to represent Japan as Prime Minister. Prime Minister Hashimoto is eagerly looking forward to a full and wide-ranging exchange of views with the other G-7 leaders under the excellent leadership of President Jacques Chirac of the French Republic, and to cooperating to ensure that this Summit produces real and meaningful successes. It is indeed timely that the 1996 Lyon Summit should focus on the central theme of globalization. Japan looks forward to the development of a forward-looking exchange of views among the participants on this most important topic. Japan believes that it is essential for the G-7 to avoid protectionist measures in responding to short-term economic circumstances, including the creation of jobs in each G-7 member economy and the promotion of the international free-trading system. President Chirac has repeatedly stressed the great importance of development issues, and Japan firmly supports his approach and hopes to play a positive role to effect progress in addressing development issues. Japan intends to create a new strategy for development -- one that will identify areas in which both industrialized countries and developing countries can work together to achieve common goals. When we think about development issues,we must also pay attention to the countries of Africa, which face great difficulties in the political, economic and social sectors. Japan intends to outline its policy on realizing development in Africa, so that these countries are not left out of the global development movement. In order to successfully address the many global issues faced by the international community, it is becoming increasingly important that the industrialized countries cooperate, both among themselves and with developing countries. Japan is determined to cooperate with the United States and the other G-7 countries to halt the spread of terrorism, and to contribute positively to the resolution of other global issues, including anti-personnel land mines,population and AIDS. With regard to political issues, Japan intends to continue to cooperate on matters which are of special concern to the United States and Europe, such as Bosnia and the Middle East, as it explains its outlook for the situation in the Asia-Pacific region, and particularly in the Korean Peninsula. Japan especially encourages the European nations to cooperate further for the activities of the Korean Peninsula Energy Development Organization (KEDO). Moving ahead with reform of the United Nations remains an important task. Japan looks forward to seeing progress on reform proceed in a balanced manner spanning the fields of development, fiscal matters and security. In addition, it is noteworthy that tomorrow is the deadline for the conclusion of negotiations on a Comprehensive Nuclear Test Ban Treaty (CTBT). Japan believes that it is incumbent upon the international community to work cooperatively to build up realistic measures for nuclear disarmament on a step-by-step basis, and in this light, Japan intends to make the utmost efforts to take advantage of this historic opportunity and to help these negotiations reach a successful conclusion. As an indication of Japan's sincere efforts, before coming to Lyon, Minister for Foreign Affairs Yukihiko Ikeda traveled to Geneva to attend the Conference on Disarmament.

Those are the announcements that I wanted to make and I would be delighted to respond to any questions you might have.
International Monetary Fund (IMF) gold sales
Q: Could you say what the Japanese position is on gold sales -- the IMF gold sales?

Spokesman for the Delegation of Japan Hiroshi Hashimoto: This is going to be discussed under the framework of the G-7 Finance Ministers Meeting. I hope you will be patient until the end of the meeting.

Q: What is your stance?

Spokesman for the Delegation of Japan Hiroshi Hashimoto: This matter is what the Japanese Finance Minister will discuss with his colleagues, and I cannot tell you before the Finance Minister speaks with his colleagues. But, in any case, talks have been going on and I am not sure whether this time the G-7 ministers will issue a joint declaration on this subject or not, but I hope you will be patient and wait and see.
Trade matters
Q: Do you expect to discuss pending trade issues, for example, the U.S. request for an extension of the semiconductor agreement, to be discussed at the bilateral meeting between Prime Minister Hashimoto and President Clinton, and do you expect that there will be any sort of communique on those issues following the meeting?

Spokesman for the Delegation of Japan Hiroshi Hashimoto: This afternoon, Prime Minister Hashimoto and President Clinton will meet and they will talk about a whole range of bilateral issues and international relations in which both leaders are interested. It is up to them, but most probably, they will touch on the outstanding trade issues. We do not expect that the two leaders will negotiate on these subjects. I would like to tell you the position of the Japanese Government, that although we have some pending issues, we sincerely hope that the two governments can continue to talk and find a mutually acceptable formula.
Development in the Asia-Pacific region
Q: You mentioned some things about development, but I don't recall that you mentioned discussions about China, and I wanted to ask you about the fact that the Chinese Government has recently emphatically stated its support for the development of corridors along the Euro-Asiatic rail routes. Is that an idea that the Japanese Government would throw its backing behind and/or is it something you think might be discussed in some of the meetings here?

Spokesman for the Delegation of Japan Hiroshi Hashimoto: Prime Minister Hashimoto is surely interested in briefing his colleagues on the Asia-Pacific region. Although I do not know how Prime Minister Hashimoto is going to speak to his colleagues, the Japanese Government wants to constructively engage the People's Republic of China to the existing world order. In this sense, there is a big possibility that Prime Minister Hashimoto will speak to his colleagues on the desirability of letting China participate in the World Trade Organization (WTO) in the early stage. At the same time, Japan has been thinking that we should let China maintain and develop their free and open policy in relation with their economic development. At the same time, we are happy that China is now a member of the Asia-Pacific Economic Cooperation (APEC) and the Asia-Europe Meeting (ASEM); so by doing so, I think Japan stresses the importance of letting China engage in a more positive position in the existing world order.
Japan-Russian Federation relations
Q: What does Japan hope to get out of or see develop out of the discussions with the Russian Prime Minister?

Spokesman for the Delegation of Japan Hiroshi Hashimoto: We are very much interested in the domestic situations of the Russian Federation, and Japan has been supporting the reform policy; whatever the result of the presidential election, we sincerely hope that the reform policy will continue. We are glad to know that the first stage of the presidential election was conducted freely and in a fair manner and we sincerely hope that the second stage of the general elections will be the same.
Currency and exchange matters
Q: Does Japan believe that there is any way for the international community to control better some of the fluctuations in the currency markets we have seen over the last year and a half or so? And, would that be desirable?

Spokesman for the Delegation of Japan Hiroshi Hashimoto: Again, if you are talking about currency, I am afraid that this is conducted by the Ministry of Finance, but what I would like to tell you is that Japan is more or less satisfied with the present close policy coordination of the G-7 countries regarding this matter, and we hope that this will continue on the basis of healthy or appropriate macroeconomic policies of the G-7 countries.
Japanese aid to Africa
Q: I heard you say that Japan would propose a new strategy for development; isn't that a little bit ambitious? What is new under the sun in these issues? Would you be a little bit more specific? Secondly, you say you have an initiative for Africa, in particular. Japan is not a natural ally of Africa -- maybe South Africa. What makes you move into Africa, and what is the reasoning behind it?

Spokesman for the Delegation of Japan Hiroshi Hashimoto: The Government of Japan has been emphasizing the importance of development for a long time. There is no secret about this, and we are very glad that President Jacques Chirac emphasizes the importance of development. At the same time, we have got to agree that some developed countries have begun to decrease their Official Development Assistance (ODA) budget. It is not very good for the countries which are in a poor state. In this very important occasion, we would like to stress the need. But when we see the importance of the development issue, we would like to create a sort of new concept in which both the developed and developing countries can jointly work to create an output-oriented target, such as a certain percentage reduction of extreme poverty, or the achievement of universal primary education, or a certain percentage of the reduction of the mortality among children, etc. The Prime Minister of Japan probably wants to stress this need, and he wants to see a consensus for the need emerge from this G-7 Summit. When we talk about development issues, we see that Africa should not be left out, and Japan has been extending substantial aid in Africa. We do not have a particular commercial interest on the continent of Africa, even including South Africa. But, if you look at the prospect in the 21st century, we should try to help Africa catch up to or at least follow after the development of developing countries. In this sense, already the Government of Japan has been advocating a series of packages in relation to African assistance. On this, I am sure that the Prime Minister is going to say something.

Q: Excuse me, but I still don't see where the new development is in all this?

Spokesman for the Delegation of Japan Hiroshi Hashimoto: Up until now, probably, developed countries decide some targets and implement, such as the several targets under the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD). What we are now saying is that, jointly with the developing countries, we will create common targets and the developed and developing countries will pursue the achievement for the targets. This is a new thing.
Regulatory reform in financial markets
Q: I am wondering what Japan's view is on the idea of greater coordination among the security and financial regulators, particularly in light of the Sumitomo scandal of recent weeks?

Spokesman for the Delegation of Japan Hiroshi Hashimoto: If you are talking about financial matters, I have to say again that I would like to leave this matter in the hands of the Ministry of Finance. However, the Government of Japan has been endeavoring to conduct regulatory reform, and in this sense, the Ministry of Finance also continues to go in that direction. If you talk about the Sumitomo incident, at this moment, the Government of Japan is carefully looking into the reasons for the inaccuracy, and is waiting for the investigation to be finished. We have already taken various regulatory measures, including in the financial market. And, in order to achieve the mid- and long-term sustainable development of Japan, we have to further rely on regulatory reform. We have the governmental program of deregulation and we review it every year -- and that rotation scheme will continue to be further implemented.

Q: [Inaudible]

Spokesman for the Delegation of Japan Hiroshi Hashimoto: In order to sustain the long-term sustainable development of Japan, we have to further rely on regulatory reform. Every year, we review that in a so-called rotation scheme, and we will continue to further implement the regulatory reform in various fields.
Further matters relating to aid to Africa
Q: Regarding development aid for Africa, in the Cairo and Beijing United Nations conferences, they were put under much pressure to receive development aid on the condition that they were receiving as well the IPPF programs. I know that Japan is one of the main sponsors of the IPPF. Is that a relationship that you bring to developing countries, that Japan pays for the IPPF programs of decreasing world population, that they also can have development aid?

Spokesman for the Delegation of Japan Hiroshi Hashimoto: On the subject of population control and AIDS, we have already committed ourselves to disburse US$3 billion for population control and AIDS from fiscal year 1994, extending for seven more years. In this light, we are endeavoring to do so. Already, so far as Africa is concerned, Japan announced its intention to focus on primary education, and from this 1996 fiscal year on, for three years, Japan intends to disburse US$100 million for primary education. By doing so, we have been stepping up our aid in Africa, especially in the social and educational sectors.
Anti-terrorism
Q: I have the statement of Prime Minister Hashimoto on Saudi Arabia in my hands. My question is whether the Japanese delegation thinks that fighting terrorism should be a matter here at the Summit in Lyon?

Spokesman for the Delegation of Japan Hiroshi Hashimoto: Fighting against terrorism is a very important subject. Already,Japan and the United States have been cooperating on this issue under the name of the Common Agenda. When President Clinton visited Japan last April, they decided to include cooperations on counter-terrorism, and already a working-level follow-up meeting has taken place. Both Japan and the United States will work to support greater law enforcement cooperation among nations. We will encourage all states to make efforts to become parties to, and abide by, international treaties and conventions against terrorism. In addition, the two governments will intensify research and development of technologies to deter, detect and apprehend terrorists. President Clinton stated in his speech today that he is going to propose forty specific measures. I think Prime Minister Hashimoto will carefully listen to what President Clinton will say and will do his best to support the policy of the Clinton Administration on this subject in an appropriate way.
Economic outlook for Japanese economy
Q: I haven't heard you say anything about the Japanese economic outlook. Could you update us on what you expect there? This morning, I believe, Mr. Kubo met with Secretary Rubin and discussed economic policies in Japan. I wanted to know what type of forward-looking policies your government is looking at to ensure continued stimulation of domestic demand.

Spokesman for the Delegation of Japan Hiroshi Hashimoto: Deputy-Prime Minister and Minister of Finance Wataru Kubo and Secretary of the Treasury Robert Rubin met this morning. The essential part of the talks between the two gentlemen is that they agreed on the importance of conducting appropriate cuts of budgetary deficits, and the importance of fiscal restructuring in both countries. That is the most important essence of the talks. If you talk about the general economic outlook of Japan, the macroeconomic data for the first quarter of this year is good, but the Government wants to see whether the economic growth of the first quarter has been propelled by policy-led growth, or putting it another way, has been propelled by the Government's physical measures -- or if the Japanese economy has started to grow on its own footing through the private sector. It all depends on what the Government will do in the next stage. It is a bit too early for us to determine which will be the case. So, for the time being, the Government of Japan is carefully watching the performance of the Japanese economy.
G-7 representation
Q: Bearing in mind what you said about the Chinese and the need to bring them into the world order, do you take the view that Asia is under-represented in the G-7?

Spokesman for the Delegation of Japan Hiroshi Hashimoto: As far as the G-7 meetings are concerned, of course European countries are over-represented. But, now China is a member of APEC, as I said. China is a member of ASEM, and we encourage China to participate in the World Trade Organization (WTO), but we have to ask China to offer better measures for market access, etc., in order to become a member of the WTO. For the time being, from Asia, Japan is the sole representative. But already, change has started. The most important thing is we should gradually, in a realistic way, encourage China and other countries to be more and more integrated into the world economic order.

Q: [Inaudible]

Spokesman for the Delegation of Japan Hiroshi Hashimoto: As far as the G-7 formula is concerned, China's participation is not on the agenda yet.
Matters relating to peace and stability on the Korean Peninsula
Q: I work for Korean television and you just mentioned about Korean Peninsula issues. I remember a few days ago there was a summit meeting between Korean and Japanese leaders. My question is, on this G-7 table, does Prime Minister Hashimoto have any special proposal for peace on the Korean Peninsula, especially KEDO or the four-party meeting?

Spokesman for the Delegation of Japan Hiroshi Hashimoto: I am sure that Prime Minister Hashimoto wants to discuss and exchange views on the situation in Asia and the Pacific. It is up to him, however, but the Government of Japan is of the view that the four-party meeting should be realized. For the time being, we have not received any response from North Korea. We have been doing our best to encourage North Korea to respond positively on this proposal. And, as far as KEDO is concerned, we are a bit concerned about the move of the United States Congress. Very recently, the House of Representatives of the United States decided to cut the budget from US$25 million to US$13 million. It is not appropriate for the Congress to cut this budget, because the activities of KEDO are very important. At the same time, I am sure that the Prime Minister is going to encourage our European colleagues to continue to endeavor to financially cooperate with KEDO.
Possible membership of the Russian Federation in the World Trade Organization
Q: As you said, Chinese membership is not on the agenda; what about Russia: do you expect them to become soon a full member of the G-7?

Spokesman for the Delegation of Japan Hiroshi Hashimoto: If you talk about the political issues, already, the G-7 countries have been conducting close conversations with Russia. However, if you ask specifically about the economic side of the G-7 Summit, at the G-7 Summit, we talk about economic coordination, monetary coordination, etc., but the Russian economy has not been integrated into the world economy yet. Again, we encourage, by extending technical assistance to the Russian Federation, Russia to learn more about the free trading system, and we hope that, at an appropriate time, Russia will be a member of the WTO.
Question about timing of Japanese briefings
Q: Allow me to ask you an administrative question. I see from the schedule that you will address us again tomorrow evening at 20:00 only. Why so late? It would be interesting to have the Japanese position on tomorrow's day maybe earlier.

Spokesman for the Delegation of Japan Hiroshi Hashimoto: Only our Sherpa is going to attend the meeting to assist the Prime Minister. So, we have got to be briefed by him. So, we thought that after the end of the full schedule, after I am briefed by the Sherpa, we would explain to you. Unfortunately, the time will be a bit late, but I hope that you can come to this. Probably 20:00 is not an appropriate time for you. I am sorry.
Further matters related to anti-terrorism
Q: I want to ask you question about the terrorism, again, in light of the statement by the Prime Minister, and your comment that, because President Clinton will make some proposals and Prime Minister Hashimoto will listen carefully to them. Does this affect the Japanese position of putting forth some proposals itself? Has that changed, in the sense that, perhaps, Prime Minister Hashimoto wanted to make some proposals of his own, but, because of these developments, the United States is taking more of a lead in anti-terrorism measures here at this Summit? Has that changed the Japanese schedule on this subject at all?

Spokesman for the Delegation of Japan Hiroshi Hashimoto: The Government of Japan is emphasizing the importance of cooperation on global issues, including terrorism. Prime Minister Hashimoto wants to contribute to this area. However, an unfortunate incident took place in Saudi Arabia. Now, President Clinton is going to propose something to his colleagues; so, it is natural for us to hear what President Clinton says. Already, Japan and the United States, as I have told you, have started to strengthen bilateral cooperation on anti-terrorism. So, in any case, Prime Minister Hashimoto wants to contribute to further cooperation on this. We hope that what he has in mind will be compatible with President Clinton's proposals.

Q: What I am wondering is -- is it correct, then, to think that Prime Minister Hashimoto was going to make some proposals, but then there was this incident in Saudi Arabia, so now, it seems more appropriate for President Clinton to take the initiative? Is there a change in that?

Spokesman for the Delegation of Japan Hiroshi Hashimoto: A civil servant like me cannot dictate what the summiteers will discuss among themselves, and Prime Minister Hashimoto will be free to take up any subject. But what I would like to stress here is -- procedural matters are not important at all. The most important thing is to strengthen cooperation on anti-terrorism, and the Japanese Government has been stepping up its efforts in this field. But, this particular incident took place, so it is quite natural, at first, for us to hear what President Clinton says. But in any case, this has nothing to do with procedural matters. If Prime Minister Hashimoto wants to say something, he will do so.

Have I answered all of your questions? Thank you very much. I am terribly sorry that I will hold the briefing at 20:00. I am not sure whether we can change the time. But the space is reserved for 20:00, and I sincerely hope that you will find the time to come to my briefing. Thank you very much, ladies and gentlemen.

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Press Conference by Spokesman for the Delegation of Japan Hiroshi Hashimoto on Japan's Position Toward the G-7 Summit in Lyon

MAJOR TOPICS

Press Conference by Spokesman for the Delegation of Japan Hiroshi Hashimoto
on Japan's Position Toward the G-7 Summit in Lyon