Courtesy Call on Prime Minister Junichiro Koizumi by Finance Minister of the Islamic Republic of Pakistan Shaukat Aziz (Special Envoy of the President Pervez Musharraf)

(1 November 2001 from 15:50 to 16:10, at the Official Residence of the Prime Minister)

1 November 2001

1. Discontinuation of Economic Measures by Japan and the Issue of Nuclear Non-proliferation and Nuclear Control in Pakistan

(1) Special Envoy Aziz stated that the recent telephone talks between Prime Minister Koizumi and President Musharraf was very meaningful and that President Musharraf was highly appreciative of the discontinuation of economic measures by Japan.

(2) Prime Minister Koizumi expressed respect to the Pakistan's attitude to break off its ties with Taliban and to cooperate with the United States of America. He, referring to the Japanese sensitivity to nuclear weapons and to the existence of the oppositions to the discontinuation of the above-mentioned measures even within the ruling parties, stated that, despite of these, he decided to discontinue measures in view of the self-restraint Pakistan has been exercising and the efforts Pakistan has been making in nuclear non-proliferation, taking into consideration international opinions. He added that despite the existence of difficult issues such as Kashmir, he would like Pakistan to continue paying attention to the international opinion urging the restraint on nuclear development.

(3) Special Envoy Aziz stated that Pakistan understands the Japanese sensitivity to nuclear weapons and that a) Pakistan is committed to the continuation of moratorium on nuclear tests; b) Pakistan is aware of the need to prevent nuclear proliferation and has confirmed that it will not share nuclear technology with other nations; and c) although Pakistan's control over nuclear assets is quite secure, Pakistan would be fully committed to such control.

2. Economic Assistance Expected of Japan

(1) Special Envoy Aziz stated that a) due to the September 11 terrorist attacks, Pakistan's economy, as seen in the export, profits, investment and so on, had suffered major damages; b) the first priority should be placed upon the stabilization of the Pakistani economy, which would lead to the stability in the region; c) although President Musharraf had initially thought that the reduction of the cumulative debt was necessary until the telephone talks with Prime Minister Koizumi, President Musharraf had changed his strategy to request rescheduling, stretching out liability and low interest rates; d) utilizing the financial resources made available through this rescheduling, Pakistan would like to place priority on reform on poverty reduction, health and education; e) although Pakistan is ruled by a military regime, it has reduced the military budget for two consecutive years and invested in human resources development; f) currently there are hopes for new financial assistance as the international economic sanctions and measures against Pakistan responding to the nuclear testing have been lifted; and g) Pakistan expects Japan to provide economic assistance in the short and medium term to overcome the current situation.

(2) In response, Prime Minister Koizumi stated that a) debt reduction is an important issue which affects Pakistan's credibility; b) details should be worked out with Finance Minister Masajuro Shiokawa; c) Pakistan has an important role to play in shaping the future of Afghanistan; d) Japan is ready to consider seriously what can be done to support Pakistan; and e) as seen in the Japanese case of achieving post war reconstruction through international cooperation, Pakistan has made the right choice in deciding to cooperate with the international community.

3. 50th Anniversary of the Establishment of Diplomatic Relations

Prime Minister Koizumi stated his wish to further advance the friendly relations between Japan and Pakistan, taking the opportunity next year of the 50th anniversary of the establishment of diplomatic relations between Japan and Pakistan.

(At the end of the visit, an official letter from President Musharraf was handed to Prime Minister Koizumi)

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