Chapter I. The International Community in 1994

(1) Overview

Untiring efforts have continued in the international community to create a framework for a new era to replace the Cold War structure. There remain, however, uncertain factors in the world, and the framework for peace and prosperity has yet to come into full view.

Regional conflicts deriving from diverse ethnic, religious, or historical causes, such as the conflict in the former Yugoslavia, continue to pose a serious threat to the international community in the post-Cold War period. In addition, as harsh economic conditions plague the former socialist countries, among others, there is an increasing danger of the proliferation of weapons of mass destruction, such as nuclear weapons accumulated during the Cold War. It is of critical importance to further improve the international non-proliferation regime. The international community also has many other problems to overcome: difficulties in economic and social reform efforts in many developing countries and former socialist countries, aggravating unemployment problems in major industrial countries, and the presence of various problems of a global scale, such as the environment, population, and AIDS.

Among positive developments, the Agreed Framework was concluded in 1994 between the United States and North Korea, aimed at settling the issue of North Korea's suspected development of nuclear weapons. The Middle East peace process also moved forward, with a peace accord concluded between Israel and Jordan. There were also bright signs in the world economy, with the economies of major industrial countries heading toward recovery and continued growth in a number of developing countries. The International Conference on Population and Development and the International AIDS Conference were both held during the year, and both helped pave the way toward the solution of some global issues.

These positive developments are the results of concerted efforts by the international community. Further efforts were also made to build a framework to consolidate such international cooperation. In the United Nations, efforts for institutional reform, including the reform of the U.N. Security Council, have been well underway. On the economic front, the World Trade Organization (WTO) was established in January 1995 in the wake of the conclusion of the Uruguay Round negotiations at the end of 1993.

While the global framework for cooperation was strengthened, the year 1994 witnessed major progress in regional cooperation as well. In the Asia-Pacific region the first ASEAN Regional Forum (ARF), the first region-wide security dialogue, was held. Asia-Pacific Economic Cooperation (APEC) produced major results toward the promotion and liberalization of trade and investment as well as the promotion of cooperation in economic development. In Europe the framework for cooperation was also strengthened; the Conference on Security and Cooperation in Europe (CSCE), renamed the Organization for Security and Cooperation in Europe (OSCE), strengthened its cooperative framework and is set to take on primary responsibility for the settlement of regional conflicts in Europe. In the Americas, following the entry into force of the North American Free Trade Agreement (NAFTA) in 1994, the possibility of achieving integration throughout the Americas is currently under consideration. Regional-level cooperation has also been advanced through the building of partnerships with the former socialist countries and with developing countries. Such partnerships are indispensable in forming a framework for international cooperation in the post-Cold War era.

It is of great significance that countries with common interests in political and economic issues have thus strengthened their cooperation at the regional level. Such regional efforts, however, should not end up hindering the development of global cooperation or cause a loss of interest in global cooperation. They should rather complement and help accelerate global cooperation. From this perspective, it is imperative to promote multilateral cooperation, including U.N. reform and the strengthening of the multilateral free trading system in the year 1995, which marks the 50th anniversary of the United Nations as well as the establishment of the WTO. It is important to strengthen cooperation among Japan, the United States, and Europe; such cooperation is indispensable in addressing a wide range of issues facing the international community. Particular importance should be attached in this regard to cooperation achieved through the annual summit meetings of major industrial countries (the G-7 Summit).

Japan has been playing a positive role in such international efforts that will be described in detail in the following chapters. In the area of settling regional conflicts, Japan has made contributions by sending personnel to take part in the U.N. peace-keeping operations in Mozambique and El Salvador and in the humanitarian relief operation for Rwandan refugees. It has also cooperated in the reconstruction of the Middle East, of Cambodia, and of El Salvador. In the area of disarmament and non-proliferation, Japan proposed to the U.N. General Assembly a resolution on nuclear disarmament with a view to the ultimate elimination of nuclear weapons, which was adopted by an overwhelming majority. Japan has thus been making concrete contributions in this area. With respect to assistance to developing countries, while other countries have been reducing their overseas assistance, Japan has been steadily enhancing its official development assistance (ODA) both quantitatively and qualitatively and lending a hand to efforts to promote democracy as well as economic and social development around the world.

The year 1995 marks the 50th anniversary of the end of World War II. It is essential that Japan, in accordance with the principles enshrined in the Japanese Constitution--respect for basic human rights, democracy, and peace--strive to realize those principles in the international community as well and work to build a better future for all humankind. As interdependence in the international community has rapidly deepened, Japan has a responsibility to assume this role, which is in its own national interests.

Under the Cold War structure, Japan had been carrying out its foreign policy as a "member of the West." Now that the Cold War has come to an end, Japan is expected to play a major role in building a new framework for international cooperation. In this respect, Japan should make efforts together with other nations with common values to foster global cooperation as well as regional cooperation in the Asia-Pacific region, in order to build a peaceful and prosperous world. In 1995 Japan, as the chair of APEC, will host the Economic Leaders Meeting and Ministerial Meeting. Japan needs to play an active role in further promoting regional cooperation in the Asia-Pacific region.

It is thus important for Japan to further advance mutual trust with other nations, which is indispensable for the fulfillment of Japan's responsibilities in the international community. Prior to the historic 50th anniversary of the end of World War II, the Government of Japan released a statement by Prime Minister Tomiichi Murayama at the end of August 1994 which noted Japan's remorse over the past and declared that Japan's future path should be to make every effort to build world peace in line with its no-war commitment. The statement also announced the launching of the "Peace, Friendship and Exchange initiative" and other measures. Under this initiative, it is imperative for Japan to look squarely at the history of its relations with neighboring Asian countries and elsewhere and work positively with these countries to promote mutual understanding and mutual confidence in the future.

In the wake of the great earthquake which struck the Hanshin and Awaji areas in January 1995, Japan received many offers of assistance from other countries, a token of the warm feelings the international community holds for Japan. The Government of Japan is deeply appreciative of this kind gesture on the part of the international community and has renewed its resolve to remain active in its efforts to work for the peace and prosperity of the world.

(2) Regional Conflicts

In the international community in the post-Cold War period, disputes arising from different ethnic, tribal, and religious causes, which remained latent during the East-West confrontation between the United States and the Soviet Union, have come to the surface. There is a growing danger that such disputes will develop into regional conflicts. Regional conflicts tend to have grave implications not only in the areas directly affected but also for the entire international community. It is therefore important that both the international community and the parties to the conflicts exert coordinated efforts to prevent and resolve such conflicts. Regional conflicts quite often cause serious humanitarian problems, such as massive numbers of refugees and displaced persons. It is without doubt extremely important that the international community render assistance to the fullest extent. Based on this conviction, Japan has been actively engaged in efforts to settle regional conflicts in all parts of the world, including Africa and other distant areas.

(a) Rwanda

The massacres that occurred during Rwanda's civil war and the continuing problems of refugees and displaced persons since then pose a most serious humanitarian problem for the international community. The international community has made positive efforts to settle the problem through peace-keeping operations by the United Nations and humanitarian relief operations by various countries coordinated by the United Nations High Commissioner for Refugees (UNHCR), as well as through cooperation by non-governmental organizations (NGOs).

The civil war in Rwanda, which flared up again in April 1994, had calmed down almost completely by July, but more than 500,000 Rwandan people are believed to have been killed in the process. Moreover, the civil war resulted in a large number of displaced persons in Rwanda, and a mass exodus of refugees to such neighboring countries as Zaire, Tanzania, and Burundi. Under the circumstances, the efforts of the international community were strengthened. In Rwanda, a multinational military force mainly led by France and the U.N. Assistance Mission in Rwanda (UNAMIR) engaged in the protection of victims and refugees and supported humanitarian relief operations, while in neighboring countries military personnel from various countries including France and the United States took part in humanitarian relief operations. Although the situation in Rwanda on the whole has been calm since the end of the armed conflicts, the new government is still not functioning properly. Moreover, because of the fears of refugees and displaced persons that there is no guarantee of safety after their return home, repatriation is taking place only slowly. As of December 1994, there were more than 2 million refugees outside the country and about 1.5 million displaced persons inside Rwanda.

Japan has dispatched government survey missions on two occasions, as well as a ruling-parties survey mission, to Rwanda since August 1994, and in light of the results of these missions has decided to carry out self-sustained international humanitarian relief operations by dispatching the International Peace Cooperation Force on the basis of Japan's International Peace Cooperation Law (see note 1). The International Peace Cooperation Force, which mainly consisted of about 400 members from the Self-Defense Forces (SDF), engaged in such tasks as medical services, sanitation, water supply, and airlifts in the refugee camps in Goma, Zaire and in Nairobi, Kenya, from September until December 1994. The dispatch of the International Peace Cooperation Force deserves special mention as a concrete example of Japan's cooperation on humanitarian issues. In addition, Japan provided financial assistance totaling about $45 million in the form of financial contributions to international organizations, including the UNHCR, and financial support for the NGOs operating in Rwanda, as well as cooperation in kind equivalent to190 million yen.

For a fundamental settlement of the Rwandan problem, it will be important to realize the safe, dignified, and voluntary repatriation of refugees to their homeland as soon as possible, to achieve political reconciliation and economic and social reconstruction in Rwanda, and to secure the peace and stability of the surrounding region. From this perspective, it will be necessary for Japan, as a member of the international community, to continue to provide as much cooperation as possible.

(b) The Former Yugoslavia

Although the conflict in the former Yugoslavia, particularly in Bosnia-Herzegovina (hereafter called Bosnia), still shows little sign of reaching a settlement, the international community continues its efforts to attain peace in the area.

Some progress was seen in Bosnia in the first half of 1994, such as the withdrawal of heavy weapons from Sarajevo and the ceasefire between Bosnian Muslims and Bosnian Croats. However, efforts to engage the Bosnian Serbs in the peace process, which are essential to the solution of this conflict, have not been successful. In July the Contact Group, consisting of the United States, Russia, the United Kingdom, France, and Germany, proposed a peace plan by which, while the unity of Bosnia would be maintained, the territory would be divided in a ratio of 51:49 between the Muslim-Croat federation and the Serbs. In proposing the peace plan, the Contact Group took a carrot-and-stick approach, indicating that if the plan were accepted, sanctions would be lifted and economic support provided, but if the plan were rejected, sanctions would be strengthened. The peace plan was also confirmed by the leaders of the G-7 countries and Russia at the Naples Summit in July. This pressure from the international community was partially successful, because in order to gain the lifting of sanctions, the Federal Republic of Yugoslavia (Serbia and Montenegro), the "mother country" of the Bosnian Serbs, went as far as breaking off relations with the Bosnian Serbs. Since the Bosnian Serbs continue to reject the peace plan, however, there have been voices calling for hard-line measures, such as the lifting of the arms embargo against the Muslims and the intensifying of air attacks against the Serbs. However, the international community has basically maintained its position that a settlement should be sought through negotiations, and in December the Contact Group made further efforts to have the Serbs accept its peace plan.

In addition to these political efforts to achieve a settlement, the U.N. Protection Force (UNPROFOR) has been deployed in Bosnia, Croatia, and the Former Yugoslav Republic of Macedonia, engaging in humanitarian relief operations, maintenance of ceasefires, and the prevention of conflicts.

The conflict in the former Yugoslavia is a typical regional conflict in the post-Cold War era, in that it derives from ethnic and religious disputes, and it has given rise to serious humanitarian problems, such as the mass outbreak of refugees and displaced persons, that should be tackled by the international community as a whole. In recognition of this, Japan has to date provided humanitarian assistance totaling about $120 million to the refugees and displaced persons and has undertaken preventive diplomacy through various measures including economic cooperation to prevent the conflict from spreading to surrounding countries, such as the Former Yugoslav Republic of Macedonia and Albania.

(c) Haiti

Important progress has been made toward the restoration of democracy in Haiti, thanks to the determined actions of the international community, led by the United States.

De facto military rule began in Haiti following a coup in September 1991. The international community has worked together, through such measures as economic sanctions, to restore democracy and to secure the return to Haiti of President Jean-Bertrand Aristide (see note 2). In order to put pressure on the junta, the U.N. Security Council adopted resolutions to impose sanctions against Haiti in June 1993 and to strengthen the sanctions in May 1994, thereby urging the military leadership to resign (see note 3). But the Haitian military did not show any willingness to compromise and escalated its provocative actions against the international community by, for example, forcibly expelling the International Civilian Mission to Haiti in July (see note 4). Under these circumstances, the U.N. Security Council at the end of July adopted a resolution authorizing the creation of a multinational force. In September, just before the multinational force launched a military intervention, the United States dispatched former U.S. President Jimmy Carter as a special envoy to Haiti in a bid to achieve the peaceful resignation of the military leadership. As a result, the Haitian military leadership agreed to resign by the prescribed deadline set by the U.N. resolution, so the multinational force began its deployment peacefully. By the middle of October the entire military leadership left the country, and President Aristide returned to his homeland.

After the outbreak of the coup, Japan consistently supported the restoration of democracy in Haiti and took an active part in international efforts toward this end by, for example, freezing economic cooperation except for humanitarian assistance. Furthermore, as Haiti has embarked upon full-scale efforts toward the restoration of democracy and economic reconstruction following the return of President Aristide, Japan has lifted the freeze on economic cooperation and has been playing an appropriate role in the cooperation by the international community for democratization and economic reconstruction in Haiti.

In particular, there is a pressing need to improve the living conditions of Haiti's impoverished people, who have been forced to lead harsh lives in serious poverty under the unjust military rule. From this perspective, humanitarian assistance is being provided by the international community. In November Japan also decided to provide support through the World Food Program and the International Committee of the Red Cross.

(d) The Middle East Peace Process

Efforts toward peace in the Middle East continued both in direct bilateral talks between Israel and its Arab neighbors, namely, the Palestinians, Syria, Jordan, and Lebanon, and in multilateral negotiations which were intended to complement and support the bilateral talks through discussions among both regional and extra-regional parties on issues of regional concern.

As a result of these efforts, Israel and the Palestine Liberation Organization (PLO) signed the Declaration of Principles on Interim Self-Government in September 1993, which was followed by the Gaza-Jericho Agreement that started Palestinian autonomy in these areas in May 1994. On the Israel-Jordan negotiation track, the two countries signed a peace treaty in October 1994. Following the Israel-Egypt peace treaty, this is the second peace treaty ever signed between the Israelis and the Arabs. Together with the lifting of the secondary and tertiary Arab boycott, which was announced at a meeting of the Gulf Cooperation Council in September, it symbolizes a further improvement in Israeli-Arab relations.

Concerning the negotiations between Israel and the Palestinians, the Palestinians undertook self-government for the first time in the Gaza Strip and Jericho in May 1994 on the basis of the Declaration of Principles on Interim Self-Government. What is required at this stage is to overcome terrorism and secure financial resources needed to set up an administrative body. In addition, negotiations are continuing with respect to an election for a Palestinian Council and the expansion of self-government to other parts of the West Bank.

Regarding other bilateral negotiations, Israel and Syria are negotiating on the withdrawal of Israeli troops from the Golan Heights and the normalization of bilateral relations, while Israel and Lebanon are discussing bilateral security arrangements and the withdrawal of Israeli troops from southern Lebanon.

There has also been progress in regional cooperation. The multilateral Environmental Working Group, for example, endorsed the Bahrain Environmental Code of Conduct for the Middle East, stipulating a framework for regional cooperation on environmental protection. In addition, a Middle Eastern and North African economic summit was held at the end of October with the participation of 61 countries, including Japan, with the objective of building a public- and private-sector partnership for economic development in the Middle East. This summit adopted the Casablanca Declaration, which, among other things, announced the establishment of a meeting of experts to discuss the creation of a development bank for the Middle East and North Africa.

To secure peace in the Middle East, it is important that both Israel and the Arab parties overcome the distrust that has been built up over the years and work to establish a system in the Middle East that can secure safety and prosperity in coexistence. In this context, the building of a framework for regional cooperation has become an important agenda item in multilateral negotiations and at G-7 Summit meetings. Japan, together with the major countries of Europe and North America, is expected to play an important role. In light of this, Japan is playing a central role in formulating a blueprint for the regional cooperation that is likely to take shape following the achievement of peace, by chairing the environmental working group and co-chairing the working groups on economic development, water resources, and refugees in multilateral talks and providing financial assistance to the Palestinians and the countries surrounding Israel.

(3) North Korea's Suspected Development of Nuclear Weapons

The problem of North Korea's suspected development of nuclear weapons not only poses serious concern for the security of Northeast Asia, including Japan, but also is an important issue in terms of maintaining and strengthening the international nuclear non-proliferation regime. For this reason, it is important for North Korea to dispel the concerns of the international community regarding its nuclear development program by making a complete return to the Nuclear Non-Proliferation Treaty (NPT), coming into full compliance with the Safeguards Agreement with the International Atomic Energy Agency (IAEA), and implementing the North-South Joint Declaration on the Denuclearization of the Korean Peninsula. Recognizing this, countries concerned (especially Japan, the United States, and the Republic of Korea), the United Nations, the IAEA, and others have continued to cooperate closely. This cooperation has led to such important developments as the conclusion of the Agreed Framework between the United States and North Korea in October 1994.

North Korea acceded to the NPT in 1985 and signed the Safeguards Agreement with the IAEA in April 1992. In the subsequent process of ad hoc inspections by the IAEA (see note 5), however, inconsistencies were revealed in the report submitted by North Korea, causing suspicions concerning North Korea's past nuclear development. Therefore, based on the Safeguards Agreement, the IAEA demanded a special inspection in February 1993 (see note 6). In response, North Korea decided to withdraw from the NPT. Subsequently, because of persistent persuasion by the international community and intermittent talks between the United States and North Korea, North Korea announced a suspension of its withdrawal from the NPT. But the situation became extremely obscure in March 1994, when North Korea rejected an important part of the inspection activities that it had agreed on beforehand with the IAEA and also broke off working-level talks with the Republic of Korea on the exchange of special envoys. Then, from May to June, the situation became even more tense when North Korea, having failed to reach an agreement with the IAEA on the storage methods necessary for future verification, carried out the discharge of fuel rods from a five-megawatt experimental reactor. As a result, the U.N. Security Council started unofficial discussions concerning its future response, including the possibility of sanctions against North Korea.

At this point former U.S. President Carter held talks with North Korean President Kim Il Sung in the middle of June, which led to the holding of the third round of negotiations between the United States and North Korea on July 8. The international community provided backing for these moves toward a settlement of the problem through dialogue. The G-7 Summit in Naples in July, for example, confirmed its unanimous support for a settlement of the problem through U.S.-North Korean talks. As a result, despite a postponement following the sudden decease of Kim Il Sung, the U.S.-North Korean talks led to the signing of the Agreed Framework in October.

The Agreed Framework is extremely meaningful in the sense that it provides a specific framework for the realization of denuclearization on the Korean Peninsula through dialogue and consultations, puts a freeze on North Korea's present nuclear development, prevents any development of nuclear weapons, and ensures transparency in North Korea's past, present, and future nuclear development through inspections by the IAEA. Specifically, North Korea agreed to put a freeze on graphite-moderated reactors that exist or are under construction and to eventually dismantle them. In addition, North Korea will be supplied with light-water reactors, in which there is less possibility of converting spent fuel to military uses. Moreover, North Korea agreed to accept any measures that are necessary in the future for the IAEA to verify North Korea's past nuclear development.

The light-water reactors will be supplied in return for North Korea's fulfillment of its commitments, which are not obligations under the NPT, to freeze and dismantle its graphite-moderated reactors and related facilities. Assistance for their replacement with light-water reactors will be provided by a newly established international consortium. In view of the significance for the international non-proliferation regime of solving the problem of North Korea's suspected development of nuclear weapons, the participation of a wide range of countries in this consortium is strongly desired, and Japan should provide appropriate cooperation in this international effort.

A final solution to this problem will require North Korea to act in strict compliance with the Agreed Framework and to eliminate all the concerns of the international community regarding its suspected nuclear weapons development. Moreover, if implementation of the Agreed Framework brings about improvements in relations between North Korea and the United States, and North Korea acts in a responsible manner as a member of the international community, particularly by dealing with North-South issues in a positive manner, then this could lead to a relaxation of tension on the Korean Peninsula and in Northeast Asia as a whole. It is for this reason that Japan should maintain close cooperation with other related countries, especially the United States and the Republic of Korea, and make the utmost effort to settle the problem.

(4) Development of Multilateral Cooperation

As described above, multilateral cooperation is becoming increasingly important for the strengthening of an international cooperative system. Amid this growing recognition, various efforts were made during 1994. Major issues for the development of multilateral cooperation include the reform of the United Nations to enable it to respond promptly to various problems facing the world; the strengthening of cooperation among the major industrial countries, among which Japan, the United States, and Europe play central roles; and the building of new cooperative relations with developing countries.

(a) The Role of the United Nations

Expectations have grown with respect to the role that the United Nations should play in shaping a new framework for international cooperation in the post-Cold War era. In order to meet these expectations, the strengthening of the functions of the United Nations through reforms in institutional and operational areas as well as in administrative and financial fields has become an urgent task. As the 50th anniversary of the United Nations approaches in 1995, there is growing momentum for carrying out these reforms. Specifically, sincere efforts are being made to, among other things, restructure the U.N. Security Council, strengthen the General Assembly and the Economic and Social Council, conduct administrative and financial reforms, improve the efficiency of U.N. peace-keeping operations, and delete the so-called former enemy clauses from the U.N. Charter. Japan is actively tackling these issues.

(i) Peace-Keeping Operations

U.N. peace-keeping operations are one of the most effective means of settling regional conflicts in a broad sense. As expectations directed toward the United Nations rise in the post-Cold War era, there is a strong need to increase the efficiency of peace-keeping operations in order to respond to the present situation, in which regional conflicts have increased in number and become more complex in character.

With respect to peace-keeping operations, the first point worth mentioning concerns the increase in their number and scale. Among the 33 U.N. peace-keeping operations, 20 have been undertaken since 1988. In recent years especially, there has been a series of large-scale peace-keeping operations involving more than 10,000 personnel in such countries as Cambodia, Mozambique, and the former Yugoslavia. As of the end of December 1994, about 75,000 personnel from 76 countries were participating in 17 peace-keeping operations. As a result, the budget for peace-keeping operations has expanded considerably. The 1993 budget for peace-keeping operations amounted to about $3 billion, about 2.3 times as much as the United Nations' regular budget for the same year.

The second point concerns the broadening of the mandates and activities of peace-keeping operations. Traditionally, the mandates of peace-keeping operations have consisted of supervising ceasefires or troop withdrawals and other similar activities. Recently, however, peace-keeping operations have come to include a wide range of activities, such as election monitoring, human rights monitoring, administrative support, and assistance for reconstruction. There have also been peace-keeping operations aimed at preventing the outbreak of a conflict--an example being the deployment of the UNPROFOR in the Former Yugoslav Republic of Macedonia. The peace-keeping operation in Somalia, which was given a mandate to take enforcement measures if necessary to secure the safety of humanitarian assistance activities, could not achieve the expected results because of a strong possibility that the United Nations itself would become a party to the conflict. Such experiences imply that the mandates and principles of peace-keeping operations should be considered more deliberately, and in this way the traditional principles of peace-keeping operations (such as agreements among parties to a conflict and impartiality) have come to be reconfirmed.

In response to such recent developments concerning peace-keeping operations, studies are being undertaken in the United Nations on how to strengthen peace-keeping operations and make them more efficient. First, it has been pointed out that the rapid increase in the number and scale of peace-keeping operations cannot adequately be dealt with by the present budgetary system, under which peace-keeping operation budgets are compiled in units of a few months for each peace-keeping operation. Thus, the possibility of streamlining and annually compiling such budgets is being considered. Other important issues include strengthening the peace-keeping operations department of the U.N. Secretariat, enabling the rapid deployment of well-trained and well-equipped personnel, and securing the safety of peace-keeping operations personnel. With regard to the last point, a Convention on the Safety of United Nations and Associated Personnel was adopted at the General Assembly in December 1994. Furthermore, there has emerged a general understanding among the U.N. member states that decisions on the deployment of peace-keeping operations and their mandates should be made not only by the permanent members of the U.N. Security Council but also on the basis of close consultations with countries concerned, such as countries providing personnel and countries making major financial contributions.

Japan has been playing an active part in discussions regarding peace-keeping operations, for example, by serving as the vice-chair in the special committee on United Nations peace-keeping operations. In addition, Japan has strengthened its domestic system, enabling it to contribute personnel to peace-keeping operations through the enactment of the Law Concerning Cooperation for United Nations Peace-Keeping Operations and Other Operations (International Peace Cooperation Law) in 1992. On the basis of this law, Japan has participated so far in peace-keeping operations in Angola, Cambodia, Mozambique, and El Salvador. Japan also dispatched the International Peace Cooperation Force, mainly composed of Self-Defense Forces, to assist Rwandan refugees (a task which is not within the framework of peace-keeping operations). For this cooperation, Japan has received much credit from the international community, not least from the United Nations. Japan's cooperation with the efforts of the international community to secure international peace and security is consistent with Japan's aspiration for an eternal peace through international cooperation, and Japan should continue to contribute actively to achieve this end in the future.

(ii) Reorganization of the Security Council

The Security Council of the United Nations is the sole body invested with the authority to make binding resolutions and bears the primary responsibility for the maintenance of international peace and security. In this sense, the Security Council plays a central role in the activities of the United Nations. In view of this important role, it has become necessary to strengthen the functions of the Security Council through reorganization and operational improvements. There exists a broad agreement in the international community on this point, as shown by the fact that of the 178 countries that delivered statements in the general debate of the 49th U.N. General Assembly in 1994, 134 countries proclaimed the need for restructuring the Security Council. At the same time, since the concerns and national interests of each country regarding the reorganization of the Security Council differ, it will be necessary, in preparation for the reorganization, to have an intense discussion regarding the role of the United Nations in the new international situation and the positioning of the Security Council in this role, as well as the specific measures required for reorganization.

With respect to the present state of the discussions about the reorganization of the Security Council, the Working Group on the Question of Equitable Representation and Increase in the Membership of the Security Council, established on the basis of a resolution adopted by the General Assembly in December 1993, met in 22 sessions from January to September 1994. In the Working Group there was a convergence of views that the membership of the Security Council should be enlarged and there was also agreement that the scope and nature of such an enlargement required further discussion. The discussion is continuing during the term of the 49th U.N. General Assembly (from September 1994 to September 1995). In this discussion, many countries already have expressed their support for the permanent membership of Japan and Germany.

In a statement in the general debate of the U.N. General Assembly in September, Deputy Prime Minister and Minister for Foreign Affairs Yohei Kono expressed Japan's basic philosophy regarding its international contributions, stating that Japan does not, nor will it, resort to the use of force prohibited by its Constitution, will remain resolutely a nation of peace, and intends to continue to cooperate actively in U.N. peace-keeping operations. He also stated that Japan is determined to enhance its contributions to efforts on global issues, including disarmament and non-proliferation, development, the environment, and human rights. Moreover, he announced that in keeping with Japan's basic philosophy regarding its international contributions, as outlined above, Japan is prepared, with the endorsement of many countries, to perform its responsibilities as a permanent member of the Security Council, and he expressed Japan's hope that the U.N. member states will accelerate the deliberations on this subject and that an agreement will be reached on a reform plan during the commemorative 50th session of the General Assembly in 1995.

(b) Trilateral Cooperation among Japan, the United States, and Europe

For the sake of maintaining and promoting the peace and prosperity of the whole world, the responsibilities and roles of the industrialized democracies of Japan, the United States, and Europe, which share the common values of freedom, democracy, and market economy, which account for about 70% of the world's gross national product, and which possess the most advanced technologies in the world, are becoming increasingly important. Looking back on the main events of 1994, multilateral cooperation centering on Japan, the United States, and Europe played an important role. In the political arena, this trilateral cooperation was essential in dealing with such regional issues as the problems in the former Yugoslavia and North Korea's suspected development of nuclear weapons, as well as in such areas as arms control and disarmament. In the economic arena, the roles of Japan, the United States, and Europe were, respectively and collectively, determining factors in ensuring continued growth of the world economy, maintaining momentum toward the establishment of the WTO, tackling various post-Uruguay Round issues, extending economic aid to developing countries, and providing support for efforts by countries in transition, such as Russia and Ukraine, to achieve democracy and realize market economy.

As symbolized by these examples, there is a growing recognition that in tackling every issue of global importance that the international community faces, close cooperation and policy coordination among Japan, the United States, and Europe is indispensable. At the same time, it is recognized that cooperation and coordination between Japan and Europe on global issues should be further promoted to put such efforts on the same level as cooperation between Japan and the United States. Already the annual G-7 Summit meetings and such international organizations as the Organization for Economic Cooperation and Development (OECD) engage in important and constructive activities to promote policy coordination among Japan, the United States, and Europe regarding international political and economic issues. Now it is important to consolidate and improve this multilateral cooperation to make it appropriate for the new era and to secure and strengthen the linkage among the activities of various forums.

(c) Cooperation with Developing Countries

There is a growing need to review the system of international cooperation and coordination, not only in the area of maintaining world peace and security but also in the areas of economic and social issues, such as development, the environment, and human rights. To tackle these issues effectively, cooperation with developing countries is indispensable, in addition to cooperation among developed countries. Developing countries, for their part, are seeking to have constructive dialogues with developed countries in a rapidly changing international environment in which the role of ideology has declined since the end of the Cold War and levels of development among developing countries have become more diverse, as seen in the remarkable economic success of many East Asian economies.

In these circumstances, it is fortunate that cooperation involving both developed countries and developing countries has been advanced in the discussion and implementation of policies for dealing with such issues as development, the environment, population, and AIDS. In the United Nations, for example, lively discussion is going on over the Secretary General's report on an "Agenda for Development" and related proposals. In addition, the achievement of solutions to problems through cooperation between developed countries and developing countries has been pursued on such occasions as the International Conference on Population and Development in October, the World AIDS Conference in December, and in the follow-up activities to the U.N. Conference on Environment and Development. Moreover, a fruitful policy dialogue on trade and investment has been underway between the OECD and the Dynamic Non-Member Economies (see note 7). A meeting at the vice-ministerial level was held in Tokyo in October 1994 for this purpose.

Since the Tokyo Summit in 1993, Japan has been proposing a new development strategy based on two main approaches: a comprehensive approach linking economic aid, trade, investment, and debt strategy, and a differentiated approach that takes into account varying levels of economic development among developing countries. In view of the fact that some developing countries have successfully achieved a certain level of economic development, the Government of Japan also considers it important to support "Economic Cooperation among Developing Countries," that is, to help advanced developing countries to act as new aid donors to other developing countries. In his address to the 49th U.N. General Assembly, Deputy Prime Minister and Minister for Foreign Affairs Yohei Kono declared that Japan intends to suggest concrete plans for the promotion of this kind of cooperation around the globe. Japan's policy is to actively pursue cooperative relations with both developing and developed countries. Cooperation currently being promoted by the economies of the Asia-Pacific region, which is described in the following section, is a good example of this.

(5) Asia-Pacific Regional Cooperation

The year 1994 is characterized as a year during which Asia-Pacific cooperation made tremendous progress. In the economic sphere, the APEC Economic Leaders Meeting declared the leaders' political commitment to a general direction of trade and investment liberalization within the region. In the political and security spheres, it is historically significant that the ASEAN Regional Forum was launched to provide for the first time a region-wide forum for dialogue and discussion.

(a) APEC

Since its establishment in November 1989, APEC has been holding a ministerial meeting every year, and in 1993 the organization held its first Economic Leaders Meeting in Seattle, in the United States. APEC continued to develop in 1994 with Indonesia as its chair; the Ministerial Meeting was held in Jakarta on November 11 and 12, and the Economic Leaders Meeting in Bogor on November 15. Moreover, a number of other ministerial meetings were held to discuss specific issues such as trade, the fostering of small and medium-sized enterprises, and the environment, thereby significantly broadening the scope of APEC. While still retaining a substantial degree of flexibility, APEC is making steady progress toward greater institutionalization. Senior Officials Meetings take place roughly every three months to prepare for ministerial meetings, and the Committee on Trade and Investment (CTI) and the Economic Trends and Issues (ETI) Ad Hoc Group, which is to become the Economic Committee in 1995, have conducted their own activities. In addition, 10 working groups have been established by APEC, with each carrying out its task in a specific area of cooperation by holding its meetings in various places in the region. The number of economies participating in APEC has now reached 18 (see note 8).

The Ministerial Meeting and Economic Leaders Meeting in 1994 produced epoch-making results for the development of APEC. In the area of trade and investment, the member economies, recognizing that the Asia-Pacific region--a region demonstrating economic dynamism--should take the lead in further strengthening the multilateral free trading system, and keeping in mind the entry into force of the WTO at the beginning of 1995, agreed to further promote liberalization and the facilitation of trade and investment. In particular, it is of utmost importance that the APEC Economic Leaders' Declaration of Common Resolve (the Bogor Declaration), which was adopted at the Economic Leaders Meeting, announced the leaders' commitment to achieving the goal of free and open trade and investment by no later than the year 2020 (no later than the year 2010 for the industrialized economies and no later than the year 2020 for developing economies). While this declaration expressed the leaders' political will to pursue economic liberalization in the long term, it was left to future discussions among the APEC members to create an action agenda which will set out sectors, coverage, and modalities for liberalization.

The representatives at the Ministerial Meeting agreed on the importance of cooperation on development in view of the diverse levels of economic development among the APEC members, and they issued a declaration on a "Human Resources Development Framework for Asia-Pacific Economic Cooperation." Meanwhile Japan, viewing the facilitation and liberalization of trade and investment and economic and technical cooperation for development as "two wheels on the same axle" for bringing about growth and prosperity in the Asia-Pacific region, proposed the formation of Partners for Progress (PFP). This proposal goes beyond the conventional approach to development issues, which tends to categorize countries as either developed or developing and to emphasize the significance of assistance by the former type to the latter. The PFP proposal aims instead to realize balanced economic development across the region by encouraging APEC members at various stages of development to cooperate with one another as partners, with each member making use of its particular experience and characteristics. Many of the APEC members have expressed their support for the formation of PFP, and what is now needed is the effort to put this new concept of APEC cooperation into shape. Additionally, Japan underlined the need to concurrently secure the "three Es" (economic growth, energy security, and environmental protection) and to advance study for this purpose. This proposal has also been well received by many members.

In 1992 the APEC members represented 38% of the world's population, 52% of the worldwide gross domestic product (GDP), and 41% of the world's total trade (according to data from the World Bank and the OECD). Given the potential for future growth in the Asia-Pacific region, it is most likely that the APEC members' influence over the world economy will continue to grow. This is why countries and international organizations outside the Asia-Pacific region, such as the European Union (EU), pay considerable attention to APEC developments. Since the liberalization of trade and investment and cooperation for development, which were agreed upon at the 1994 APEC meetings, are vital to the development of the world economy and therefore a great challenge for Japan's foreign policy, Japan, as chair of the 1995 APEC meetings, must actively tackle these issues.

(b) The ASEAN Regional Forum

Previously, the security interests of the countries of the Asia-Pacific region have seldom covered the whole region. Following the enormous changes in the international environment since the end of the Cold War, however, there is a growing interest in region-wide political and security issues and interests. In response to this interest, political and security dialogues have become active since 1992, mainly on the occasion of the Association of Southeast Asian Nations (ASEAN) Post-Ministerial Conferences. In addition, the first ASEAN Regional Forum (ARF) was held in July 1994. In this forum, 17 foreign ministers from the Asia-Pacific region, including those of China and Russia as well as a representative from the European Union, assembled for the first time to discuss political and security issues in the region.

In the first ARF, the participants exchanged opinions, mainly on political and security issues in the Asia-Pacific region, and also submitted several proposals concerning concrete Confidence-Building Measures. At the end of the meeting, Minister for Foreign Affairs Prasong Soonsiri of Thailand issued a Chairman's Statement in which he expressed recognition of the fact that developments in one part of the Asia-Pacific region could have an impact on the whole region and confirmed the desire of the participants to continue and develop the ARF process from that time on. It was also agreed that the ARF should be held once a year and that Brunei should be the host country in 1995. In addition, the Chairman's Statement expressed the firm conviction that work should be continued toward strengthening and enhancing political and security cooperation within the region and suggested specific measures for consideration, along with a follow-up mechanism.

Deputy Prime Minister and Minister for Foreign Affairs Yohei Kono, who represented Japan at the ARF, affirmed that Japan would continue its basic security policies, which embrace an exclusively defense-oriented stance, the Three Non-Nuclear Principles, and the strengthening of the non-proliferation regime. Regarding regional security, Minister Kono stated that whereas the presence and engagement of the United States in the region is a prerequisite for regional peace and stability, efforts should be made to promote an increase of mutual confidence through the ARF process and to establish and improve the security environment from a long-term perspective. For this purpose, Minister Kono proposed to have concrete discussions on "Mutual Reassurance Measures" in three areas: information sharing, personnel exchanges, and cooperation toward the promotion of global activities.

The first ARF in 1994 thus affirmed the emergence of a common interest in security issues in the Asia-Pacific region and represented the beginning of a new experiment in dialogue and cooperation in the post-Cold War era. Countries in the region should continue their efforts to put the ARF process on a firm track by the step-by-step realization of security cooperation measures, with a view to fostering relations of mutual confidence for the long-term stability of the region. Japan, as one of the major countries in the region, should play an active role in these moves by providing concrete details on the three areas for Mutual Reassurance Measures that it proposed in the 1994 Forum.

(6) Japan-U.S. Relations

Although there were some uncertain factors in Japan-U.S. relations in 1994, such as domestic political changes in both countries (the change of government in Japan in July and the Republican victory in the midterm elections in the United States in November) and difficulties in the Japan-U.S. Framework Talks negotiations, which started in 1993, the two countries continued their efforts to develop further bilateral ties in the three areas of politics and security, global cooperation, and economic relations.

In particular, in the Japan-U.S. summit meetings held in Naples in July and in Jakarta in November, the leaders of the two countries pledged the continuity of their countries' respective foreign policies and affirmed that changes in domestic politics would not affect in any way the importance of Japan-U.S. relations.

From the beginning of 1994 through early fall, public attention was primarily drawn to issues in the area of trade and economy, especially to the Japan-U.S. Framework Talks. The two governments engaged in a series of discussions in order to further strengthen well-balanced and cooperative relations in all fields. As a consequence, a number of positive results were achieved. The Framework Talks reached a conclusion in September, producing agreements in such areas as government procurement and insurance. The leaders of the two countries agreed in their summit meeting in November to further promote bilateral cooperation in the Asia-Pacific region from a global perspective.

Japan and the United States have strong ties of mutual interdependence, both in terms of security as allies and in the economic arena. In addition, both countries have extremely important responsibilities for the peace and prosperity of the world in the post-Cold War era. It is of great importance for both countries to maintain the Japan-U.S. Security Arrangements and to build up close policy coordination on major diplomatic issues. (For more information on Japan-U.S. security relations, see Chapter II, Part 1.)

(a) Japan-U.S. Friendship

The visit of Their Majesties the Emperor and Empress of Japan to the United States in June 1994 deserves special mention as an event that further fostered Japan-U.S. friendship. It was the first visit to the United States by Their Majesties since the Emperor's accession to the throne and also the first visit by a Japanese emperor and empress in the 19 years since Emperor Showa and Empress Nagako visited in 1975. In addition, the Emperor and Empress were the first state guests that President Bill Clinton had received since his inauguration.

During their visit of over two weeks, the Emperor and Empress traveled not only to Washington, D.C., but also around the country to such states as Georgia, South Carolina, New York, Missouri, Colorado, California, and Hawaii, receiving a warm welcome from President Clinton and the people attending their visit at each destination. Moreover, the Emperor and Empress had the opportunity to meet directly with many U.S. citizens and were invited to welcoming events organized around the country by Japanese-Americans and Japanese citizens residing in the United States.

The visit of the Emperor and Empress received wide coverage in the U.S. media every day, and American people who had the opportunity to meet directly with Their Majesties were deeply impressed by their warm personalities. The visit was highly conducive to increasing the sense of affinity between the two nations and to deepening their friendly relations.

(b) Japan-U.S. Economic Relations

Throughout 1994 focal attention was drawn to economic and trade relations between Japan and the United States, especially the Japan-U.S. Framework Talks. In the Japan-U.S. summit meeting held in Washington, D.C., in February between then Prime Minister Morihiro Hosokawa and President Clinton, the two leaders failed to reach a conclusion on the issue of objective criteria, thus ushering in a temporary cooling-off period in the Framework Talks. In late May, it was agreed to resume the talks after a meeting between then Deputy Prime Minister and Foreign Minister Tsutomu Hata and U.S. Trade Representative Mickey Kantor in Marrakech, Morocco, in April. Following a difficult phase of negotiations, ministerial-level talks at the end of September eventually led to a conclusion in the fields of government procurement (telecommunications and medical technology) and insurance, among other areas.

From the viewpoint of overall Japan-U.S. relations, it was obviously undesirable that the Framework Talks had floundered for 14 months since their inception in a statement issued by then Prime Minister Kiichi Miyazawa and President Clinton in July 1993. Because of the lack of smooth progress in the Framework Talks, the spotlight at times was focused excessively on the economic friction between Japan and the United States, which it was feared would give rise to ill feelings between the two peoples.

Japan took the view that the results of the Japan-U.S. Framework Talks should help promote the multilateral free trading system and the principle of market economy. In light of this view, Japan held the talks with the United States based on the following principles: (1) the scope of the talks should be limited to the extent that a governmental response is possible and that governmental responsibility covers; (2) any content that makes promises about future results should be excluded (the exclusion of practical numerical targets); and (3) the results of the talks should be applied also to third countries on the basis of the most-favored nation status. What lay behind this approach was the idea that a successful conclusion of the talks under such principles could benefit both Japan and the United States, which are the biggest beneficiaries of the prosperity of the entire world economy. Both sides managed to reach a certain conclusion in the talks at the end of September in such a way as to maintain these principles and to satisfy both parties. This could have a positive impact on the overall Japan-U.S. relationship, and the results are highly commendable on this account. It is expected that the results of the Framework Talks will also have a positive effect on talks in other areas as well.

Prior to the talks at the end of September, the Government of Japan decided on a reform of the tax-cut measure in order to establish an appropriate tax system which takes into account the aging Japanese population and also to stimulate the economy. While the decision was made voluntarily and apart from the Framework Talks, it was conducive to fostering a favorable climate for reaching a conclusion in the talks.

However, Japan and the United States failed to reach an agreement at the end of September regarding the issue of autos and auto parts, which was one of the priority areas in the talks. The United States identified the area of auto replacement parts as an "unfair trade practice" on the basis of Section 301 of its Trade Act. As a result, negotiations on the area of autos and auto parts entered a temporary cooling-off period. The commencement of this unilateral action by the United States is against the spirit of the Framework Talks and is thus regrettable. At the end of 1994 the two countries reached an agreement on the resumption of talks in this area. It is hoped that the talks will reach an early settlement.

The Framework Talks continue to be a significant forum for dealing with issues in Japan-U.S. economic relations. In this regard, it remains important to keep the talks going in sectoral and structural areas, with a view to reaching settlements wherever possible and as early as possible. Furthermore, in light of the large current account imbalances that exist between the two countries, it is important in promoting the smooth management of Japan-U.S. economic relations that Japan tackle its own issues in such areas as domestic demand-led economic management and deregulation. Also important are efforts on the part of the United States to reduce its fiscal deficit and strengthen its competitiveness.

(c) Common Agenda for Cooperation in Global Perspective

Throughout 1994 the Common Agenda for Cooperation in Global Perspective between Japan and the United States advanced significantly. Representing one of the main pillars of the Framework Talks, the Common Agenda refers to cooperation not only in tackling global issues shared by the international community, such as the environment, population, and AIDS, but also in promoting further economic development and mutual understanding through technological development and personnel exchanges.

In their summit meeting in February 1994, then Prime Minister Hosokawa and President Clinton confirmed their initiative to provide assistance totaling $12 billion over the seven years until the year 2000 in the areas of population and AIDS. Moreover, in their summit meeting in Jakarta in November, Prime Minister Murayama and President Clinton decided to further promote bilateral cooperation in areas closely concerned with the Asia-Pacific region (coral reefs, child health, narcotics, global climatic change research, forests, population, and AIDS).

The Common Agenda represents an important contribution by Japan and the United States to the development and prosperity of the international community in the post-Cold War era. It is hoped that the Common Agenda will help foster the interest of third countries in global issues, and that the peoples of Japan and the United States will deepen their understanding of and support for the program.

(d) Prospects for 1995

Given the present state of interdependence between Japan and the United States, it is unavoidable that friction exists to some extent in relations between the two countries. In these circumstances, what is important for Japan is to do what should be done to tackle various economic issues, such as the further improvement of market access, and to promote the smooth management of the Japan-U.S. relationship from a broad perspective. The year 1995 in particular is a major milestone, marking the 50th anniversary of the end of World War II.

From this point of view, the summit meeting between Prime Minister Murayama and President Clinton in January 1995 was extremely significant as a step forward in advancing a future-oriented partnership for the next half century. During the meeting, the two leaders looked back on the development of Japan-U.S. relations over the last half century and discussed the course of cooperation between the two countries in the future. In particular, they agreed to further enhance cooperative relations on a wide range of issues, such as the maintenance of the Japan-U.S. Security Arrangements, the promotion of a security dialogue, cooperation for the success of APEC, the solution of global issues, and support for women in developing countries.

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