Visit to Europe by Prime Minister Keizo Obuchi

January 18, 1999

SUMMARY

From January 6 to 13, Prime Minister Keizo Obuchi paid an official visit to France, Italy, the Vatican and Germany. He was accompanied by Deputy Chief Cabinet Secretary Muneo Suzuki, as well as Minister for Economic Planning Taichi Sakaiya and Economic Strategy Council Chairman Hirotaro Higuchi.

1. Key Events in Each Country

(1) France: Meetings with President Jacques Chirac and Prime Minister Lionel Jospin, speech on the occasion of a lunch hosted by the Mouvement des Entreprises de France (MEDEF)
(2) Italy: Courtesy call on President Oscar Luigi Scalfaro, meeting with Prime Minister Massimo D'Alema
(3) Vatican: Audience with Pope John Paul II, meeting with Cardinal Angelo Sodano (Secretary of State)
(4) Germany: Courtesy call on President Roman Herzog, meeting with Chancellor Gerhard Schroeder, courtesy visit by Foreign Minister Joschka Fischer

2. Four Main Messages

Prime Minister Obuchi made a point of conveying the following four main messages to the leaders of France, Italy and Germany, thereby emphasizing that Japan is a partner whom Europe can count on.

(1) Japan welcomes the launching of the euro and will cooperate with Europe to reform the international financial system and enhance currency stability.
(2) Japan is taking bold steps to revive its economy, and Japan is aiming for the realization of positive growth in fiscal year 1999.
(3) As the largest provider of assistance to the Asian countries hit by the current economic crisis, Japan will continue to work with Europe and the United States to overcome the crisis.
(4) Japan wishes to strengthen bilateral ties and establish relations of personal trust with the leaders of each country.

3. Joint Press Statements on the Reform of the International Financial System

Following Prime Minister Obuchi's respective meetings with President Chirac, Prime Minister D'Alema, and Chancellor Schroeder, joint press statements were issued concerning the reinforcement of the international financial and monetary systems. The main points of the statements are as follows:
(1) Japan will work together with France, Italy and Germany, respectively, to reform the international financial system.
(2) The stability of the euro-yen exchange rate is especially important.
(3) Cooperation will be promoted for the stabilization of foreign exchange markets.

4. Speech to MEDEF

Matters covered in Prime Minister Obuchi's speech included his determination to revive the Japanese economy and Japan's involvement in efforts to bring about an economic recovery in Asia. He emphasized that Japan is a solid partner whom Europe can count on and called for the development of closer relations between Japan and Europe in all areas of activity.

ACHIEVEMENTS

1. Overview

(1) All leaders agreed with Prime Minister Obuchi to strengthen bilateral and Japan-European relations in all areas of activity, including the political, economic, and cultural spheres.
(2) The achievement of a shared understanding with the leaders on the need to work together for the reform of the international financial system and for currency stabilization is an indication that Japan and Europe will take the initiative in attaining global economic stability on the occasion of the launching of the euro.
(3) President Chirac and the other European leaders expressed confidence in the Japanese economy and welcomed the Prime Minister's strong determination for its revival.
(4) European leaders also expressed appreciation for the major role that Japan is playing in supporting the recovery of the Asian economy.
(5) Prime Minister Obuchi successfully built relationships of personal trust with European leaders, thereby laying the foundations for further strengthening bilateral links and Japan's relationship with Europe.

2. Specific Issues

(1) Reform of the United Nations

Prime Minister Obuchi pointed out the necessity of the reform of the United Nations, particularly that of the Security Council, and of Japan's becoming a permanent member. Prime Minister D'Alema showed understanding for Japan's position but stated that if only Japan and Germany were given permanent seats, it would be as if the door had been shut in Italy's face. Chancellor Schroeder stated that he would like to cooperate in working for the reform of the United Nations, including redefining the role of the Secretary-General and dealing with the budgetary problem. Both leaders affirmed their intentions to work closely with Japan on these issues.

(2) High-Level Talks

Prime Minister Obuchi extended invitations to Prime Minister Jospin and Chancellor Schroeder, respectively, to visit Japan. Prime Minister Jospin indicated his intention to visit Japan in late February, and Chancellor Schroeder in autumn.

Note: Prime Minister Jospin's visit was subsequently postponed at France's request due to a special meeting of the European Council (the EU summit) scheduled toward the end of February.

(3) Promotion of Youth Exchange

An agreement to introduce working holiday visa was signed with France. Prime Minister Obuchi proposed the introduction of a similar arrangement with Germany.

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