Chapter I.   The World in the Midst of Historic Transition and Japan


Section 1. The International Outlook in a Transitional Era


1. Overview


As the dissolution of the Soviet Union in December 1991 brought the Cold War to an end, the world entered a period of instability, as is commonly seen in eras of historic transition. Since then, the world has witnessed many disheartening developments such as the volatile situation in Russia, the proliferation of weapons and the intensifying conflicts in the former Yugoslavia. Also, the world is faced with sluggish economies in the industrialized countries, and the ever-deepening problems of developing countries. Euphoric views on the future of the world, which prevailed in the industrialized democracies with the end of the Cold War, were short-lived. With the evolving international situation thereafter and the deepening social and economic problems, there is a growing sense of uneasiness and uncertainty for the future. Faced with such a situation, the international community must cooperate to overcome the problems of this transitional period.


2. The World in Transition and the Challenges It Faces


(1) The Former Soviet Union

Since the outset of the Gorbachev Government in the Soviet Union in 1985, East-West relations greatly changed, especially in Europe. With the failed coup d'etat by the conservatives in August 1991 and the dissolution of the Soviet Union in December Soviet communism lost its authority as a state ideology. The structure of the East-West Cold War disappeared.

In the Commonwealth of Independent States (CIS), which was created after the dissolution of the Soviet Union, Russia was recognized as successor to the Soviet Union and occupied a leading position. Russian President Boris Yeltsin launched a series of bold initiatives toward democratization and economic reforms: he proceeded to dismantle the Communist Party organizations and set out drastic economic reforms in January 1992, including price deregulation. In order to join the International Monetary Fund (IMF), Russia submitted to the IMF in March the "Memorandum of Economic Policy" spelling out its radical reforms, and was officially admitted to the IMF in June 1992. It also formulated the "Programme for Deepening the Economic Reforms" in June. All of these developments were a testimony to the strong commitment of Russian leaders to economic reform.

Also, Russia has strengthened its diplomatic ties with the industrialized democracies. Subsequent to his U.S. visit of February 1992, President Yeltsin again visited the United States in June, when the "Charter for American-Russian Partnership and Friendship" was issued. In this charter, the two countries, sharing fundamental values, commit themselves to further cultivating cooperative relations. Russia has issued similar documents with the United Kingdom, France, Germany, Canada, Italy, the Republic of Korea and China, in an effort to strengthen its relations with these countries.

Through these developments, Russia is being recognized as a country endeavoring to become a constructive partner of the industrialized democracies, rather than a state in confrontation with them. International efforts are underway to help support the Russian reforms: assistance has been expanded to various fields, and supporting framework has been reinforced. Conferences on Assistance to the New Independent States were held, beginning in Washington in January 1992, then in Lisbon in May, and in Tokyo in October. The establishment of Coordinating Groups to coordinate further assistance for each of the former Soviet states except Russia was also agreed. At the Munich Summit of July 1992, the comprehensive support programme was announced, including a $24 billion financial package, technical assistance, and further expansion of market access to products from the countries of the former Soviet Union. Agreement was also reached on the Programme of Actions to improve safety of the Soviet-designed nuclear power plants.

It must be noted, however, that Russia has wide-ranging destabilizing elements. Its economic situation has increasingly become serious, as seen in its four-digit annual inflation rates and a large decline in production. There is still a deep-rooted domestic resistance to the economic reforms. Further, negotiations on stand-by agreements with the IMF have reached an impasse. As regards the Russian political situation, the drafting process of a new Constitution including the establishment of the principles of the division of powers and the rule of law has made little progress. The democratization process has yet to be firmly settled, as witnessed in the confrontation between the President and the Parliament, and in an emergence of a nationalistic movement. In its relations with other states of the former Soviet Union, ethnic problems in Pri-Dnestr Republic, Tajikistan, and Abkhazia have become a major concern for Russia, in terms of protecting the Russians residing outside Russia and of maintaining political stability in the countries of the former Soviet Union. While the relations between Russia and industrialized democracies are strengthening, efforts are still being made toward creating further improved bilateral relations between Russia and Japan in the aftermath of the abrupt postponement of President Yeltsin's visit in September 1992, with the still unresolved Northern Territories issue.

It is difficult to foresee how such a situation in Russia will evolve. A destabilized Russia, with its enormous quantity of nuclear and other modern weapons and diverse ethnic groups, would have a serious impact on the whole world. The Russian problem is one of the most serious challenges that the world is faced with in this transitional period.


(2) Arms Control and Disarmament

With the end of the Cold War, the North Atlantic Treaty Organization (NATO) has greatly changed its character as a military organization confronting the Eastern bloc. The North Atlantic Cooperation Council (NACC) was established in December 1991 in order to promote cooperation with the former Eastern bloc countries. Furthermore, as the leaders of the United States and Russia declared that they do not regard each other as a potential enemy, the two countries have addressed the issue of nuclear disarmament seriously. Following the proposals of September and October 1991 including the abolishment of tactical nuclear weapons, the United States and Russia made a nuclear disarmament proposal in January 1992. At the June 1992 U.S.-Russian Summit meeting, the two leaders reached an epoch-making agreement to reduce, among others, their strategic nuclear warheads to one third of the present levels. This agreement led to the second Strategic Arms Reduction Treaty (START II), signed between the U.S. and Russian leaders in January 1993.

As nuclear disarmament progresses between the United States and Russia, it is becoming more and more important for the international community to address the issue of proliferation of weapons. In some developing countries, as a result of the disappearance of the restraint imposed under the U. S.-Soviet bipolar structure, there is an increased risk of proliferation of weapons of mass destruction such as nuclear and chemical weapons, as well as missiles. Examples include Iraq, as evidenced in the Gulf Crisis, and North Korea, suspected of developing nuclear weapons. In addition, under the unstable situation of the countries of the former Soviet Union, there is a danger that substances, scientists and engineers affiliated with the development of mass destruction weapons might spread from these countries. Discord between Russia and Ukraine also raises apprehension over the control of nuclear weapons in the countries of the former Soviet Union.

In grappling with these problems, it is first of all important to enhance universality of international non-proliferation regimes such as the Treaty on the Non-proliferation of Nuclear Weapons (NPT), by further encouraging wider participation of non-member countries. Also, in this context, it is a welcome development that South Africa, China, France and others joined the NPT in 1991 and 1992, and that the Chemical Weapons Convention was adopted in the United Nations General Assembly in the fall of 1992. Also, it is no less important to reinforce the effectiveness of the non-proliferation regimes. To that end, efforts are being made to utilize the special inspection mechanism of the International Atomic Energy Agency (IAEA), as well as to improve the export control system of the goods and materials related to weapons of mass destruction. In order to prevent a spread of weapons and technology from the countries of the former Soviet Union, international efforts are being made at the Cooperation Forum of the Coordinating Committee for Multilateral Strategic Export Controls (COCOM) and other fora. In order to provide the scientists and engineers involved with weapons of mass destruction with peace-oriented research projects, the International Science and Technology Center is to be established as a result of the cooperation of Japan, the United States and the European Community.

At the same time, it is important to enhance the transparency of, and exercise due restraint in, the international transfer of conventional weapons. While it is necessary for a country to engage in transaction of conventional weapons for self-defense purposes commensurate with each country's security environment, unrestrained transfer of conventional weapons would heighten mistrust and concern, and might lead to regional instability. Considering that greater transparency in arms transfer is an essential first step to address these issues, Japan, together with the EC and other countries, proposed the establishment of the United Nations Register of Conventional Arms in 1991, which was later decided at the United Nations General Assembly in the same year. As five major arms suppliers, the United States, the United Kingdom, France, China and Russia, are said to be providing over 80 percent of the world's total weapons, they bear principal responsibility on the issue of transfer of conventional weapons. It should be noted that these five countries agreed in October 1991 on common guidelines for the export of conventional weapons. These guidelines place, among others, self-restraint in the transfer of weapons which may increase regional tensions or instability. Also, from the viewpoint of securing sufficient resources for economic development of developing countries, it is no less essential to refrain from excessive military spending and arms transaction. This line of thought is reflected in Japan's Charter of Official Development Assistance decided in June 1992. There is also a need to encourage the Central and Eastern European countries and the countries of the former Soviet Union to further pursue the conversion of military industries into civilian ones in the process of economic reforms. For some industrialized democracies, there is also an emerging recognition that such defense conversion be promoted in a smooth manner, against the background of the diminishing weapons market that has accompanied the end of the Cold War.


(3) Regional Conflicts

As U.S.-Russian (or U.S.-Soviet) cooperation advances in the recent international environment, movements have also been observed in many other parts of the world toward a settlement of regional conflicts. Examples of these favorable developments include the attainment of peace accords of Cambodia in October 1991 the Multilateral Middle East Peace Talks started in January 1992, sub-sequent to the holding of the Peace Conference of October 1991, the peace agreement in El Salvador reached in January 1992, and progress made in the South-North dialogue in the Korean Peninsula since the fall of 1990.

However the end of the Cold War does not ensure that all of the conflicts in the world be automatically led toward a solution. The conflicts whose origin bear no direct relationship to the U.S.-Soviet rivalry are yet to be solved, as seen in the Kashmir issue between India and Pakistan and the Cyprus dispute between Greece and Turkey. As regards the Middle East peace process, while direct negotiations between the Arab states and Israel have started, further strenuous efforts are required before peace is within reach. In the Asia-Pacific region, several unresolved disputes still remain, such as the Northern Territories issue, the Korean Peninsula and the Spratly Islands issues.

Further, it should be noted that, after the breakdown of the East-West bipolar structure, the world is faced with an increasing risk of regional conflicts rooted in ethnic, tribal and religious rivalries. These examples are seen in civil wars and rivalries in the former Yugoslavia, Somalia and the former Soviet Union. As these disputes are rooted in local, yet complicated, origins, there is a certain limit to the effectiveness of external influences. The fundamental settlement of these disputes requires along time. In the former Yugoslavia, for instance, prospects for settlement are yet to be seen in Bosnia-Herzegovina, despite the mediation and peace-making efforts undertaken by the EC, the Conference on Security and Cooperation in Europe (CSCE) and the United Nations, and the dispatch of the United Nations Peace-keeping Forces. How the international community will respond to these conflicts can be seen as a crucial test for the international community at this historic era of transition. Japan, for its part, must not, and cannot, be inattentive to these issues, however little, its direct interests may be in these conflicts.


(4) The United Nations

With the end of the Cold War, the United Nations, unburdened from the East-West ideological confrontation, is regaining the originally envisaged functions of preserving international peace and security. In particular, the activities of the United Nations are increasingly gaining importance in an effort to address the regional conflicts described above. Since 1948, 28 United Nations Peace-keeping Operations have been established, of which 15 have been created since 1988. These operations have also become larger in scale: more than 20,000 personnel are serving in the United Nations Transitional Authority in Cambodia (UNTAC) and the United Nations Protection Force (UNPROFOR) in Yugoslavia, respectively. In addition, their activities are also so diversified as to include not only observance of ceasefires but also civilian monitoring of administrations and support to humanitarian assistance efforts in areas such as distribution of food and materials.

Amid the heightened expectations of the United Nations in settling regional conflicts worldwide, discussions have been actively engaged about the role of the United Nations Peace-keeping functions. The United Nations Security Council Meeting at the Level of Heads of State and Government in January 1992 requested the U.N. Secretary-General to produce his analysis and recommendations on ways of strengthening the U.N. capability relating to preventive diplomacy, peace-making and peace-keeping. In response, Secretary-General Boutros Boutros-Ghali submitted a re-port entitled "An Agenda for Peace" in June 1992. Included in this report are many interesting recommendations on a role for the United Nations in a series of peace processes, such as confidence-building, fact-finding, early warning, good offices, mediations, peace efforts, prevention of conflict escalation, peace-keeping operations, and post-conflict reconstruction and rehabilitation. While further deliberations are needed in such areas as the creation of peace enforcement units and the preventive deployment of a United Nations presence, this report is seen as noteworthy in that it presents the future role of the United Nations.

In this connection, as regards Somalia, the United Nations Security Council adopted a resolution in December 1992, authorizing the member states to take all measures necessary to ensure a safe environment for humanitarian relief operations. The resolution was adopted amid the deteriorating situation in Somalia where the humanitarian rescue efforts toward preventing starvation of its people had been making little progress. Based on this resolution, many countries, particularly the United States, are endeavoring to restore domestic order in Somalia. This operation is noteworthy as a new form of cooperation for international peace and stability.

As the U.N. peace efforts diversify, the support of the member states for the U.N. activities are increasingly significant. Japan, for its part, is called to further strengthen its cooperation with the United Nations.


(5) The World Economy

In addressing the problems of the transitional period, it is increasingly important to maintain and strengthen the vitality of the world economy. In particular, it is crucial to secure sustainable economic growth in the industrialized economies which bear major responsibilities for the peace and prosperity of the world. In recent years, these economies have stagnated: the average real economic growth rate of the OECD countries in 1991 dropped to 0.8 percent, with the U.S. economy registering a growth of-1.2 percent and the U.K. economy -2.2 percent. This was in sharp contrast with the 8-year expansionary phase in the industrialized economies from 1983 to 1990, the longest postwar period expansion. (The real economic growth rate of the OECD member countries during that period averaged 3.6 percent annually.)

Faced with the delayed economic recovery, the Group of Seven Industrialized Countries agreed on policy coordination to achieve stronger sustainable growth at the Munich Summit in July 1992. Nevertheless, the forecasts for the real economic growth rates of the overall OECD member countries for 1992 and 1993 remain at 1.5 percent and 1.9 percent, respectively. It is also expected that the total number of unemployment in the OECD countries will reach 34 million by the end of 1993. These sluggish economies, coupled with serious problems including drugs, crime and immigration, have aggravated the socioeconomic difficulties in many industrialized countries. As the industrialized economies play a central role in maintaining the vitality of the world economy, their recovery is key to securing the prosperity and development of the whole world. Together with the economic recovery of the major countries such as the United States, Japan and Germany, it is necessary to achieve an early conclusion of the Uruguay Round negotiations. Its success will help secure confidence in the future of the world economy and provide the basis for the expansion and development of world trade.

The situation described above has produced emerging criticism of incumbent leaders and the existing political systems in the industrialized democracies, stemming from public dissatisfaction with the management of social and economic issues, although the degree of discontent may vary from country to country. For instance, public support for the Bush Administration had, in polls, reached a historic high in the United States with the victory in the Gulf War and the end of the Cold War. However, with the continued sluggish economy and the increasing sense of uncertainty about the future, the heightened focus on social and economic problems of the United States helped the Democratic Party win the presidential election of November 1992, the first Democratic Presidential victory in 16 years.


(6) Problems of Developing Countries

With the end of the Cold War, it has become possible to address the problems of the developing countries, free from the ideological constraints of the East-West context. Following World War II, decolonization movements had proceeded against the historic back-ground of anti-imperialistic ideology vs. Western capitalism in the process of securing independence. The North-South problems tended to connote an ideological tendency in the context of East-West relations. With the end of the Cold War, however, it has become essential to seriously address the problems of developing countries as an integral part of achieving global peace and prosperity, free from ideological constraints.

Several developing countries are making serious efforts to promote democratization and introduce market economies. Examples include Mongolia, Nepal and Bangladesh in Asia; ,Nicaragua and El Salvador in Latin America; and Zambia in Africa. Also, a more moderate, constructive approach is being taken by the developing countries toward further dialogue with industrialized countries, as seen in recent developments at the United Nations and the Conference of Heads of State and Government of Non-Aligned Countries in September 1992. Furthermore, some developing countries are also making strides toward mutual cooperation in the areas of trade and investment. The importance of such South-South cooperation was recognized at the Meeting of the Summit Level Group for South-South Consultation and Cooperation (G-15), a summit meeting for consultations and cooperation among developing countries, in November 1992.

In total, the situations of developing countries are nonetheless exacerbating in such areas as poverty, accumulated external debt and population expansion. For example, the income gap between the industrialized and developing countries has widened compared with 30 years ago. Also the per capita income of the developing countries registered negative growth both in 1990 and 1991. The outstanding external debt of all developing countries is estimated to have reached $1,351 billion at the end of 1991. Many debtor countries are not yet in a position to be able to make repayment on their debt. The world's population, today at 5.5 billion, is anticipated to reach 10 billion in the year 2050; more than 90 percent of the increase is attributable to the developing countries.

However, it should be noted that situations of developing countries vary from country to country. These countries can no longer be categorized as a single group. On the one hand, some developing countries in Asia have attained relatively high growth rates. The prospect for economic recovery is also emerging in some Latin American countries. On the other hand, the growth rate registered -2.0 percent on a per capita basis in Africa in 1991. Therefore, in tackling the problems, there is a need to take a finely-tuned, differentiated approach in accordance with the social and economic situation of each developing country.

The industrialized countries have initiated various measures to resolve the external debt problems of developing countries. However, against the background of fiscal difficulties of many developed countries, there appears to be the so-called "aid fatigue" on their part. Further, increasing attention is being paid to the problems of the countries of the former Soviet Union and Central and Eastern Europe. In light of these circumstances, there is cause for concern that recent statements of the leaders of the industrialized countries tend to lack reference to the problems of the developing countries.


(7) Global Issues

In addition to the problems described above, global issues, such as the environment and refugees, are also cause for serious concern. Since these problems have ramifications which extend beyond territorial borders, they cannot be resolved by one country alone. In addressing these matters, international cooperation is essential.

Recently, increasing international attention on the global environment bas led to specific measures launched in various fora such as the United Nations and the G-7 Summit. In June 1992, the United Nations Conference on Environment and Development (UNCED) in Brazil resulted in the adoption of the Rio Declaration on Environment and Development, Agenda 21, an action plan for the 21st century, and the Statement of Principle on Forests; and the Framework Convention on Climate Change and the Convention on Bio-diversity were open for signature. Following the Conference, the July G-7 Munich Summit reiterated the importance of continuing the follow-up process initiated at UNCED. An outline for the Sustainable Development Commission as a follow-up mechanism was decided at the U.N. General Assembly.

The number of refugees is said to exceed 18 million today, and continues to be on the rise. In the post-Cold War era, emerging regional conflicts are giving rise to new refugees and displaced persons in the former Yugoslavia and Somalia. These refugee problems are not only of a humanitarian nature but also of securing political stability in neighboring areas. In an effort to tackle these issues, as is the case with addressing regional conflicts, a comprehensive approach is needed to prevent a surge of refugees, to afford them temporary protection and to promote their repatriation and resettlement.


3. Responses of the International Community


(1) Importance of Multilateral Cooperation

The dissolution of the East-West structure underlying postwar international politics, the globalization of economic activities, and the growing concern about global issues such as the environment have increased the significance of multilateral coordination and cooperation. This view was reflected in the Political Declaration at the Munich Summit of July 1992 as "Shaping the New Partnership," which is to replace the East-West confrontation and bridge the North-South differences. In today's world of deepened interdependence, no single country, not even the United States, can accomplish alone the tasks that the international community is faced with, while a single country could destroy peace or impede cooperative efforts. The so-called "one nation pacifism" or "one nation prosperity" is virtually impossible. In recent years, as described below, serious efforts are being made in order to address the compelling and urgent international problems in such fora as the United Nations, or through multilateral coordination and cooperation. Under these circumstances, the role of the Asia-Pacific countries, the most dynamic region of the world today, is also emerging as partners in international cooperation, not to mention the cooperation among the major industrialized countries such as Japan, the United States and those in Europe.

The most notable example of multilateral cooperation is the support efforts being given to the countries of the former Soviet states. They are being pursued through international institutions such as the International Monetary Fund (IMF), the World Bank and the Organization for Economic Cooperation and Development (OECD). At the Tokyo Conference on Assistance to the New Independent States, hosted by Japan in October 1992, 70 countries from Europe, North America, Asia, Oceania, and the Middle East as well as 19 international organizations and the European Community (EC) participated. European and North American countries and Japan are working together to address the issue of securing the safety of the former Soviet-designed nuclear power plants. In addition, the International Science and Technology Center is to be jointly established by Japan, the United States, Europe and Russia, in an effort to address the issue of outflow of scientists and engineers related to weapons of mass destruction from the countries of the former Soviet Union.

In the Multilateral Middle East Peace Talks, some 40 countries [including the United States, Russia, Japan, the EC, Canada, the Gulf Cooperation Council (GCC) countries (the United Arab Emirates, Oman, Qatar, Kuwait, Saudi Arabia, Bahrain) and Maghreb countries (Algeria, Tunisia, Morocco, and Libya)], as well as the main parties concerned (Israel, the Palestinian/Jordanian joint delegation, Lebanon and Syria), have participated. They have been consulting in working groups about arms control, economic development, water resources, the environment and refugees.

As for the Cambodian problem, 19 countries, including Japan, the United States, the United Kingdom, France, Russia, China, Vietnam and the member countries of the Association of Southeast Asian Nations (ASEAN) participated in the Paris Conference in October 1991. In the Ministerial Conference on Rehabilitation and Reconstruction of Cambodia hosted by Japan in June 1992, 32 countries and 12 international institutions attended.

As for the former Yugoslavia, the United Nations High Commissioner for Refugees (UNHCR) hosted the International Meeting on Humanitarian Aid to Victims of the Conflicts in Geneva in July 1992, in which delegates from about 60 countries and related international organizations participated. Furthermore, in the International Conference on the former Yugoslavia held in London in August, more than 20 countries including Japan participated and agreed to settle the conflict politically, and to strengthen the efforts for humanitarian assistance.

The importance of multilateral cooperation in addressing issues of international concern was also demonstrated in the holding of the United Nations Security Council Meeting at the Level of Heads of State and Government in January 1992 to discuss the United Nations' role in the post-Cold War era, and in the participation of 182 countries in the United Nations Conference on Environment and Development (UNCED) in June 1992.

Such multilateral cooperation is also important, from the viewpoint that domestic and foreign policies are now inseparable. Ina democratic system, it is essential to obtain public understanding and support even in grappling with tasks for the international community. In particular, we are charged with the ever more important task of coordinating domestic politics with the rapidly changing international environment. To this end, it is increasingly important for the countries to clearly demonstrate to the international and domestic public their common tasks and directions, in close consultation with other countries.


(2) Increased Movement of Regional Cooperation

In addition to these multilateral cooperative efforts, movements toward regional cooperation have further developed in both political and economic fields. In an effort to further promote European integration, the European Union Treaty (Maastricht Treaty) was signed in February 1992 aimed not only at market integration, but also at economic, monetary and even political union. Its ratification process is now underway in the EC 12 member countries. The Conference for Security and Cooperation in Europe (CSCE) is an outstanding example of regional political cooperation. As epitomized by the phrase, "From Vancouver to Vladivostok," CSCE is a vast regional cooperative mechanism encompassing North America, all of Europe and the countries of the former Soviet Union. With the end of the Cold War the CSCE has changed in character, transforming from a forum for negotiation between the East and the West to that of regional cooperation based on common values. As the CSCE assumes an important role in such areas as arms control and disarmament, the prevention and solution of conflicts and the protection of human rights in Europe, it is thus searching for a new world order. As a country sharing the same fundamental values, Japan, though it is not situated in Europe, participated as a special guest in the CSCE in July 1992. In the economic sphere, the North American Free Trade Agreement WAS agreed upon in August 1992 to create a free trade area encompassing the three countries of the United States, Canada and Mexico, with a combined population of 360 million and GDP of $6,200 billion, slightly larger in scale than the EC.

These moves are aimed at promoting regional cooperation suitable to the region against the background of the differing regional political and economic situations. It is expected that they will contribute to the world as a whole. They must not encourage participating countries to focus their attention exclusively on the issues of their region. They should also be consistent with the international systems such as the United Nations and the General Agreement on Tariffs and Trade (GATT). In the political sphere, the United Nations Charter recognizes the role of regional agencies in solving conflicts, but also requires that activities by such regional agencies be notified to the Security Council. Also, for example, the CSCE, defining itself as an organization based on the "regional arrangements" of Chapter VIII of the United Nations Charter, is making efforts to strengthen complementary cooperation. In the economic field, regional cooperation and integration must be consistent with the multilateral free trading system based on the GATT, and must help expand the world's economy and trade. In the Asia-Pacific region, the ASEAN countries agreed in January 1992to create the ASEAN Free Trade Area (AFTA). The Asia Pacific Economic Cooperation (APEC) is also gaining importance to strengthen economic relations with member countries or regions and to promote regional economic development. In some countries of this region, with the growing concerns over prospects of the Uruguay Round and the movements toward regional integration in North America and Europe, moves are seen such as a proposal of the East Asia Economic Caucus (EAEC).


(3) Significance of Japan-U.S.-European Cooperation

 In multilateral cooperation, Japan, North America and Western Europe assume particularly important responsibilities and roles. These countries share fundamental values such as freedom, democracy and market economies, which are also the guiding principles of the international community today. In addition they account for more than 70 percent of the world's Gross National Product (GNP). It is extremely important for Japan, the United States and the European countries to cooperate closely for securing world peace and prosperity based on the fundamental values, thereby extending beyond their bilateral relationships. Without their close cooperation, it would be difficult to effectively address the problems the world faces. The support efforts toward democratization and market economies in the former Eastern bloc countries and in developing countries are good examples where Japan, the United States and Europe should be working together. Indeed, Japan, the United States and Europe are undertaking multilateral cooperation from the perspective of achieving world peace and prosperity, as attested to by the Japanese participation in the international assistance to the geographically distant Central and Eastern European countries and by the European participation in the reconstruction of Cambodia in Asia. Against the background of their expanding roles and responsibilities, the policy coordination among Japan, the United States, and Europe in such fora as the G-7 Summit is increasingly becoming important in both political and economic fields.


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