Section 2. Tasks of Japan's Foreign Policy
(1) Seeking to advance the cause of world peace and stability and wanting to play a more active role commensurate with its position as the world's second-largest economy, Japan has recently been promoting the International Cooperation Initiative grounded on the three pillars of enhancing official development assistance (ODA), as a main pillar, cooperating for peace, and strengthening international cultural exchanges.
One of the reasons for this emphasis on the International Cooperation Initiative is the fact that there have been heightening expectations both in Japan and overseas that Japan fulfill responsibilities and play a role for international stability and prosperity commensurate with its economic strength. Another reason is the recognition of importance for Japan, that have renounced the use of force as a means of settling international disputes, to work to eliminate destabilizing elements in the international community by promoting economic growth in the developing countries through economic and technical cooperation and by promoting mutual understanding among nations, and also to work to maintain stability in regions beset with conflict through financial and personnel support for the United Nations' peace-keeping operations.
(2) With the systematic enhancements to date, ODA volume has been increased to \1,235.8 billion ($8,965 million) on a net disbursement basis in 1989, overtaking the United States to make Japan the world's largest donor country. However, Japanese ODA is still only 0.32% of GNP, slightly under the average of 0.33% for the Development Assistance Committee (DAC) member countries, and there are increasing calls both in Japan and overseas for increasing this ratio to GNP. At the same time, the effort to untie ODA loans are also bearing fruit and untied loans accounted for 80.5% (on an E/N basis) in fiscal 1989. However, the grant element in Japanese ODA averaged only 43.3% in 1988 and 1989, and this is another area where it is hoped improvements can be made.
Japan has constantly developed new programs to meet the diverse needs of the developing countries, and the non-project grant assistance extended to sub-Saharan Africa since 1987 has won special praise from the international community.
(3) In the area of cooperation for peace, Japan has seconded Foreign Ministry officials to the United Nations' peacekeeping operations in Afghanistan and the Iran-Iraq conflict since 1988, and this was followed up on in November 1989 when 27 people were supplied to theNamibian election observer and again in February 1990 when six weresent to join the election observer in Nicaragua.
Japan has long extended financial support for United Nationsoperations, including fiscal 1989 contributions of $86 million for theUnited Nations peacekeeping operations and $1.5 million for ceasefireverification force on the Sinai Peninsula, but it is no exaggeration tosay that this Japanese cooperation is not fully appreciated by theinternational community because it tends to be purely financial cooperation. Thus it is that the provision of personnel has been internationally applauded and, like the hosting of the Tokyo Meeting on Cambodia in June 1990, seen as evidence of new Japanese activism.
It is also important in this connection that Japan provide support for Indochinese and other refugees everywhere. By the end of June 1990, Japan had accepted 6,698 Indochinese refugees for resettlement, and Japan announced at the June 1989 International Conference on Indochinese Refugees that it would accept 1,000 Vietnamese refugees for resettlement over the next three years. At the same time, Japan is working actively through the United Nations High Commissioner on Refugees (UNHCR) to alleviate the burden on Hong Kong and the ASEAN countries struggling with large influxes of boat people from Vietnam, and this has been very highly appreciated by the countries concerned.
The Japan Disaster Relief Team formally established in 1987 has provided a total of 150 persons to 21 countries so far, including a team of rehabilitation experts to assist in the wake of the December 1988 earthquake in Armenia, the Soviet Union, and medical, relief, and expert teams in the wake of the July 1990 earthquake in Luzon, the Philippines.
Assistance to Poland and Hungary, which has been a major international political issue ever since the Arch Summit, should be seen as part of cooperation for peace in the broader sense in that it helps to consolidate democracy in these countries. When Prime Minister Kaifu visited Europe in 1990, the government announced support policies totaling $1.95 billion for Poland and Hungary, and, when agreement was reached on the establishment of the European Bank for Reconstruction and Development (EBRD) in April 1990, Japan undertook to subscribe approximately 8.5% of the initial capital for the EBRD, placing it somewhat behind the United States' 10% but on a par with the United Kingdom, West Germany, France and Italy. And at the G-24 ministerial-level meeting in June 1990, Japan pledged to look positively at support for the other reforming countries of Eastern Europe.
Support for the countries of Eastern Europe as they strive to adopt democracy and market economies is needed to consolidate the favorable changes that have been evident in Europe since 1989 and are thus of global significance. At the same time, however, it must be recognized that many of the developing countries have expressed concern that Euro-American concentration on events in the Soviet Union and Eastern Europe may lead to a lessening of assistance to the developing countries. It was in explicit recognition of this concern that the Economic Declaration of the 1990 Houston Summit explicitly stated, "We reiterate that our commitment to the developing world will not be weakened by the support for reforming countries in Central and Eastern Europe." Nevertheless, the developing countries' anxieties on this score are deep-rooted, and it is important that Japanese policies take this point into special consideration.
When Iraq invaded Kuwait in August 1990, the United Nations Security Council took swift action against Iraq for its gross violation of the United Nations Charter and its aggression by. adopting quickly resolutions which call for an Iraqi withdrawal from Kuwait, economic sanctions, the protection of foreign nationals, and other steps to ensure peace in the Gulf and the peace and stability of Saudi Arabia and other Gulf countries. At the same time, a total of 22 countries sent forces to the region, including the leading Western countries, the Arab countries, and even the Soviet Union. Japan, having major responsibilities for the building of the new international order and recognizing the need to respond vigorously to international efforts for the peace and stability in the Gulf and the restoration of the international legal order, decided on a package of transportation, materials and equipment, medical, and other cooperation amounting to a total of $1 billion and has also pledged to provide additional cooperation up to a maximum of $1 billion depending upon how the situation in the Gulf region develops. In addition, Japan has pledged economic support totaling about $2 billion for the front-line countries hardest-hit by the conflict's economic dislocations such as Egypt, Turkey and Jordan, and has decided on over $22 million in assistance for refugees in Jordan and other countries in the vicinity.
(4) Strengthening international cultural exchanges contributes to building international relations of peace and stability by heightening mutual understanding among nations and creating a richer cultural climate. The Action Program for International Cultural Exchanges drawn up in September 1989 explains the specific measures. Japan Foundation, the central agency for Japanese cultural exchanges, saw its budget increased to \13.53 billion for fiscal 1990 (an increase of 12.3% over the previous fiscal year). Promoting the spread of Japanese language education and seeking to introduce Japanese culture overseas in a positive response to the sharp increase in interest in Japan recently is one important part of cultural exchanges. In that sense, the establishment of the Japan Foundation Japanese Language Institute in July 1989 is especially noteworthy.
At the same time, the Europalia Japan program of events held for a total of three months in Belgium and elsewhere in the fall of 1989 drew a total of 1.65 million people and made a significant contribution to introducing Japanese culture and promoting mutual understanding between Japan and Europe.
Of course, such exchange has to be a two-way street, and efforts to introduce other countries' cultural richness in Japan are also very important. Thus it is that high hopes are held for the operations of the Japan Foundation ASEAN Cultural Center opened in January 1990 to promote such bicultural exchanges.
There is increasing awareness of the importance of Japan's contributing to the international community in the cultural sphere, and these are strong hopes that Japan will help with the preservation and restoration of important cultural sites representing landmarks in human history. The Japanese Trust Fund for the Preservation of the World Cultural Heritage established within UNESCO in August 1989 is highly regarded as a positive response to this need.
It is desirable that Japan further enhance its strong support for international cultural exchanges, and exchanges of ideas and information among leading people in different walks of life are an important part of such interaction. Likewise it is also important to seek to further improve the two-way communication in ideas and other areas between Japan and the United States as these two countries become increasingly interdependent across the entire spectrum of concerns.
(5) One other issue that has also been highlighted recently is that of responding to common problems for human beings that no one country can resolve by itself. This includes so-called global environmental issues, narcotic drugs, terrorism, and the proliferation of nuclear and chemical and other weapons, and the importance of international cooperation to deal with these issues has been pointed out. In fact, there was agreement on the need for comprehensive policies to deal with these issues at the 1989 Arch Summit and again at the 1990 Houston Summit.
With the increasingly important role played by science and technology, Japan, as one of the leading-edge countries in this area, enhanced its programs to invite researchers from abroad in 1988, is cooperating with other countries in promoting the Human Frontier Science Program and developing a space station, and is engaged in cooperative programs with the United States and 18 other countries under bilateral agreements for cooperation in science and technology. For the future it is important to ensure that Japanese research is even more open to international participation, to make every effort to take an active part in international cooperation, in order to fulfill international expectations.
(6) Economically, it is imperative that Japan, as the world's second-largest economic power and as one of the leading surplus countries and creditor countries, play a role commensurate with its position for global prosperity and the maintenance and strengthening of the free and multilateral trading system. In fact, it is precisely by undertaking major responsibilities and roles in all manner of fields and contributing to a better world as one of the mainstays of the international economic system that Japan, a major beneficiary of the world economic system, can ensure its own medium- and long-term prosperity.
Realizing this, Japan must be engaged in efforts in the Summit meetings, the OECD, and other forums to promote policy coordination for non-inflationary and sustained world economic growth and must also contribute vigorously to the maintenance and strengthening of the free and multilateral trading system centered on GATT.
At the Houston Summit all of the participating countries agreed on the need to continue to work to contain inflation and to reduce their external imbalances and reaffirmed their political determination on the maintenance and strengthening of the free and multilateral trading system to reject all forms of protectionism and to ensure that the Uruguay Round negotiations are successfully concluded by the end of 1990.
It is vitally important to Japan's future that the free and multilateral trading system be able to respond effectively to the structural changes underway in the international economy. Accordingly, Japan is making every possible effort for the successful conclusion of these negotiations, upholding those principles that must be upheld and bearing those burdens that must be borne
In the management of its domestic economy, Japan is firmly adhering to domestic-demand-led economic management and is making even greater efforts to become an importing power through promoting deregulation and other structural adjustment and a host of import-promotion measures including further improvements in market access. The Structural Impediments Initiative (SII) talks conducted with the United States starting in 1989 issued its final report in June 1990 with each of the countries outlining the measures that it should take to resolve those structural issues that impede the proper balance in their trade and international balance of payments accounts.
The very fact that the United States and Japan, the world's number one and number two economies, have engaged in discussions dealing with domestic economic structural policies is itself a first in the history of economic diplomacy. That these talks took place at all was a reflection of the degree to which Japan and the United States are interdependent and of the responsibilities and capabilities that the two countries bear in the management of the world economy, and it is crucial that these structural adjustments be successfully implemented in both Japan and the United States.
While such structural adjustments may entail a certain measure of difficulty and sacrifice in Japan, it is important that Japan make a vigorous effort so as to reduce its external imbalances and to forge balanced external economic relations.
(7) Japan has long formulated its foreign policy from the dual position of being an industrialized democracy and being an Asia-Pacific nation. Relations with the United States are important from both perspectives.
The Japan-United States relationship has recently been complicated by increasingly difficult trade and economic relations. Yet it is clear that close relations between Japan and the United States, not only in the economic sphere but across the entire spectrum of international interests, is important not only for Japan and the United States but also for Asia-Pacific stability and hence the peace and prosperity of the entire world. It is based upon this realization that the governments of Japan and the United States have been emphasizing the importance of their global partnership since 1989.
Now in its 30th year, the Security Treaty between Japan and the United States continues to provide an indispensable framework for peace and stability in the Asia-Pacific region, and the American deterrent force guaranteed by this security arrangement is prerequisite to Japans security. At the same time, the Japan-United States security arrangement gives international credibility to Japan's basic policy position of being devoted exclusively to defense and not becoming a military power.
The importance of the Japan-United States Security Treaty remains unchanged despite the progress made in the relaxation of East-West tensions. This is why Japan has sought, along with developing moderate defense capabilities, to promote the smooth operation of the security arrangement, including expenditure related to the stationing of U.S. forces in Japan and providing for technical exchanges, and these efforts will continue to be important.
(8) Relations with Europe are another area requiring greater effort in connection with Japan's position as an industrialized democracy. With the changes in Eastern Europe and the EC integration scheduled for 1992, it is important to further strengthen cooperation between Japan and Europe. It was in realization of this imperative that Prime Minister Kaifu visited Europe in January 1990. It was also in this spirit that the Japan-EC Ministerial Meeting was held in May 1990 after a three-year hiatus and that political consultations were held in July 1990 between the Foreign Ministers of Japan and the EC troika.
Likewise Prime Minister Thatcher of the United Kingdom visited Japan in September 1989 and Prime Minister Rocard of France visited in July 1990, both agreeing on the need to strengthen Japan-Europe dialogue and cooperation. Looking ahead, there is a need to promote greater mutual understanding and to enhance cooperative relations in a wide range of fields, including the cooperative relation-ship for Eastern Europe, which is an area of mutual concern for Japan and Europe alike, assistance to the developing countries and such regional issues as Cambodia.
At the same time, it is increasingly important that the Japan-U.S.-Europe triad cooperate in close political coordination. While political issues are already being coordinated at the ministerial level in the Summit meeting, in the G-7 Foreign Ministers' meetings, policy dialogue has also been initiated at the Director General for political affairs level as well.
In its economic cooperation for the countries of Eastern Europe, it is important that Japan cooperate not only financially but also in conveying Japanese views on the issues involved to West European and other countries. While Japan is already engaged in close consultations with the other G-24 countries to ensure that our support for the countries of Eastern Europe is fully effective, it is significant that it was decided at the CSCE Bonn Conference on Economic Cooperation in Europe in March and April 1990 to take up the question of macroeconomic policy advisory support for the countries of Eastern Europe within the OECD forum of which Japan is a member.
(9) Especially noteworthy in connection with our position as an Asia-Pacific nation are the visit to Japan by President Roh Tae Woo of the Republic of Korea and his wife in May 1990 and the visit by Prime Minister Kaifu to the Southwest Asian countries in late April and early May of the same year. President Roh's visit to Japan was very successful in laying to rest those problems rooted in the past and building up the foundations for a new era in Japan-ROK relations. Likewise, Prime Minister Kaifu's visit to Southwest Asia was significant in indicating the breadth of Japanese cooperation with the rest of Asia, cooperation that has tended to concentrate more on East Asia but also clearly includes Southwest Asia as well.
While it is obvious that relations with the ASEAN countries area main pillar of Japan's Asian foreign policy, it is also true that this demands that the relations between Japan and the ASEAN countries be strengthened. Indeed, one of the reasons that Japan is making an active effort to resolve the Cambodian issue is the realization of how important it is to resolve this problem, one of the main sources of instability in Southeast Asia, and to encourage further development for the ASEAN countries.
Its modernization having benefited from the availability of technology and scholarship in the more-advanced countries, Japan recognizes that its position as an Asia-Pacific country is not merely in the sense of being geographically located in the Asia-Pacific region but must extend to enabling Japan, in light of its own experience, to share the developing countries' awareness of the importance of development and of the difficulties that development entails. In this sense, it is important to see Japan's relations with the countries of Latin America, the Middle East, and Africa as an extension of its position as an Asia-Pacific country. Consequently, Japan must not be satisfied with having become the leading ODA donor country but must further enhance its efforts in this realm. In the same light, it is also important that Japan work to promote imports of manufactured goods and agricultural products from the developing countries
(10) Relations with the Soviet Union are another important issue in Japanese foreign policy. Japanese foreign policy is premised upon the friendly relations that have been built up with a wide range and number of countries over the last 45 years, and it is not a normal situation indeed that no peace treaty has yet been signed with the neighboring Soviet Union. This is all the truer with the Soviet Union attempting to transform itself under President Gorbachev's leadership .Although there is still much that is uncertain about the Soviet Union's future, as noted above, it is clear that the Soviet Union needs the industrialized democracies' help to succeed in its reforms, and Japan has already received two missions from the Soviet Onion to provide them technical assistance. Japan has also agreed at the Houston Summit for the international institutions to do studies to identify ways in which the Soviet Union can be assisted effectively. All of this is because Japan believes that it is in the best interest of world peace and stability that perestroika achieves its stated objectives.
At the same time, however, no changes have yet been seen in the Soviet government's position on the return of Japan's Northern Territories as indicated at the five meetings of the Working Group on the Peace Treaty that have been held since December 1988. Nonetheless, this issue has recently been debated in the Soviet Union with a flexibility that would have been inconceivable in the past, and it appears that Soviet understanding of this Northern Territories problem, while still inadequate, is slowly advancing.
(11) There were no countries at the Houston Summit that declared themselves unalterably opposed to the Japanese policy of resuming the third round ODA loans to China in the expectation that it will encourage China's reforms and its open-door policy. Even though all of the leaders may have had their own reasons for doing this, it was symbolic of the present era that Japan decided to act on Asia-Pacific issues on its own initiative and responsibility and that the other leaders there respected this decision. The other side of this, however, is that Japan has to take responsibility before the international community for the results of its initiatives.
Japan has a very large role and responsibilities to play in the economic sphere. Indeed, it is now 'internationally acknowledged that Japanese participation is prerequisite to rebuilding the East European and Latin American economies. As seen in the fact that economic difficulties have contributed to changes in Eastern Europe and promoted disarmament by the superpowers and that economic cooperation for Eastern Europe and the Soviet Union has become a major international political issue, economic issues are expected to have an increasingly important impact on political issues.
One of the major tasks in Japanese foreign policy will thus be that of how to accurately assess the international political situation and how to use Japan's economic capabilities in the cause of stability and prosperity for the international community.
As Japan becomes a more important economic presence, it will become imperative for Japan to contribute vigorously, including the dispatch of personnel, within its Constitutional constraints, to international efforts to secure peace and stability in all corners of the globe. To respond to this new issue is thus another major task in Japanese foreign policy.