US Department of State 

Dispatch, Vol 3, No 3, January 20, 1992

Title:

The Hemisphere's Hopes for Peace

Baker Source: Secretary Baker Description: Address before the Salvadoran National Assembly, San Salvador, El Salvador Date: Nov, 17 199211/17/92 Category: Speeches, Testimony, Statements Region: North America, Central America, South America Country: El Salvador Subject: Democratization, United Nations [TEXT] It is a special honor to speak to you, the leaders of El Salvador, and through you to the people of this great nation, on this, your first day of peace in more than a decade. Yesterday, in Mexico City, I was honored to stand with your President to witness the signing of the historic accords that ended El Salvador's long and bloody conflict. But I believe the true meaning of those accords can only be understood here in El Salvador on the faces of the Salvadoran people. Here, I see relief, joy, perhaps a little apprehension, but most of all hope-- hope for the new possibilities peace can bring to all Salvadorans. I am here today to tell you on behalf of President Bush: We in the United States share your joy--and your sense of relief. We understand your apprehensions. Most of all, we and, I believe, the entire democratic community, will stand with you to help build that new, more hopeful future. The peace we celebrate today was won through the struggle and sacrifice of many Salvadorans whose names may not be known but whose contribution will long be remembered: the citizens from every walk of life who defied threats of death and violence to stand in voting lines through seven national elections; the workers, businessmen, and farmers whose will to produce could not be defeated by the destruction of war; the soldiers of the Salvadoran armed forces who died to defend freedom and the families who mourned them; the mayors who, despite threats and assassinations, labored to bring electricity or safe drinking water to remote villages and towns; the political leaders, and their supporters, who never left the democratic struggle, even after the election fraud of 1972; and finally those who had the courage to return from exile to El Salvador and re-enter the democratic competition, even though they had to wear bulletproof vests beneath their guayaberas. Tribute is due also to the negotiating teams from both sides who persevered until they hammered out a just and honorable agreement. The National Assembly, many of whose leaders and members are here today, deserves enormous credit. The Assembly's speedy action in ratifying the constitutional reforms hammered out in Mexico City last April helped create the confidence and momentum that steadily moved the process toward the peace we celebrate today. The spirit of tolerance, cooperation, and compromise that has emerged in the National Assembly has helped by offering proof that national reconciliation is possible. But one man deserves special recognition today--the man who took his oath of office as your President on June 1, 1989. In his inaugural address, President Cristiani declared, "We have the historic obligation to end the war, and we will do so through means provided by democracy itself." Now, 30 months later, through perseverance, vision, and will, President Cristiani has fulfilled that "historic obligation." On behalf of President Bush and the Government of the United States, I salute your President, the hero of the Salvadoran peace accords, Alfredo Cristiani. President Cristiani described this moment best when he addressed your nation following his return from the historic final meeting in New York. He said, "We should not see it as the end of the conflict. We should see it as the beginning of the process of consolidating peace and democracy, respect for human rights and national reconciliation." The process of consolidating peace and democracy, respect for human rights and national reconciliation will be (as you know well) as challenging and complicated as the process of defending democracy and negotiating a final agreement. But I believe El Sal-vador begins this new era with real reason for hope. We are hopeful because the peace accords clearly enjoy the broad support of both the Salvadoran people and of the international community. Let no one doubt where the Government of the United States stands: We fully support the peace agreement. We support these accords--not as a necessary evil to end a bitter conflict but because we believe the reforms that have been negotiated in the judicial system, the electoral system, the armed forces, and the police will, as President Cristiani said, strengthen El Salvador's democratic institutions, enlarge the scope of human rights, and promote national reconciliation. The international community, which played such an important role in helping end the war, now has a responsibility to help secure the peace. Too often, nations lose interest in a region when a conflict has ended and is no longer capturing the headlines. The international community must not make that mistake in El Salvador, and I do not believe it will. Let me pledge to you that we will work with the United Nations, and the democratic community of nations, to help mobilize political support and resources in order to help translate the hopeful promises of the Salvadoran peace accords into an enduring reality. But ultimately, the success or failure of peace will depend on the people of El Salvador. The negotiations succeeded because Salvadorans, who for too many years communicated with bullets, rockets, and bombs, finally concluded that the only way to settle their differences--and save their country--is through dialogue, negotiation, and compromise. That dialogue must continue. For the fears that separated Salvadorans through a decade of war will not be dissolved overnight. Instead, former enemies must now build bridges of trust and confidence, brick by brick, and day by day. That will not be easy. But as an American, I know it can be done. The United States, too, was once consumed by a long and bitter civil war. Like this conflict has been for you, it was the bloodiest in our history. Yet with peace and over time, we were able to bind up the wounds of war, confront historic injustices, and forge a stronger, more democratic, more just society. Despite the dangers and the difficulties, I am confident the citizens of your country can and will do the same. Fortunately, there is a blueprint to guide you through this process--the peace accords themselves. Both sides to the conflict have pledged to uphold the accords. Both sides must honor those commitments to build trust and lasting peace. The leaders of the FMLN [Farabundo Marti National Liberation Front] have said they are counting on the international community to help oversee and guarantee the provisions of the peace accords. The international community through the United Nations (including the United States) has accepted that responsibility. But the FMLN must understand that its authority to call on others to carry out the accords will depend on the FMLN's own track record in meeting its obligations, too. For let us be frank. There are some Salvadorans, with memories of guerrilla war and violent political struggle, who fear that the peace accords are an enormous trap--a political Trojan horse--that will allow the FMLN to re- enter civil society only to return to the violent and destabilizing politics of the past. It is essential that the FMLN demonstrate by its actions and its words that these skeptics are wrong. The sooner its army converts into a peaceful political force, the faster the important work of national reconstruction and reform can go forward. It is equally important to recognize that former guerrilla combatants and their supporters, who now seek to enter the democratic process, have their own memories of the terrible political violence they suffered in the past. Their security concerns must also be taken seriously. Already, while the overwhelming majority of Salvadorans were celebrating the peace, a few extremists were greeting the peace accords with published death threats and bombs. These people call themselves Salvadoran patriots. In truth, they are traitors to the Salvadoran nation. They threaten El Salvador's democratic hopes and future just as much as those who once advocated violence from the opposite political extreme. There can and must be safe political space in the democratic life of your nation for all those who advocate peaceful change. There can and must be no space or tolerance in El Salvador for vigilantes of violence on either the right or the left. Threats have already been made against church figures, journalists, and UN personnel. So let me make one thing clear. The democratic community has labored long and hard to assist the Government and people of El Salvador to gain this historic opportunity. International observers will be here in large numbers to monitor the peace process. The United States (and, I believe, others in the democratic community) will provide whatever assistance is possible to the Government of El Salvador to ensure that anyone who threatens the peace process through violence is prosecuted to the full extent of the law. There can be no safehaven for those who seek to destroy through violence El Salvador's hard-won chance for peace. Peace in El Salvador is important, not only to the people of El Salvador but also to our hopes of building a more peaceful region and world. The success of the peace process here will strengthen the capacity of the United Nations to fulfill its founding vision of promoting peaceful resolution of conflicts around the world. It can also provide renewed energy and momentum for the peace process in Guatemala. The time has come to negotiate an end to Guatemala's 30-year-old insurgency. When it ends, we will be able to look across Central America for the first time in its history and see the promise of Esquipulas fulfilled- -every nation living peacefully under a government freely chosen by its people. With democracy and peace, all of Central America can turn to the work of development, trade, and investment--work that has been neglected too long. El Salvador's free market reforms have already brought renewed growth to your country, despite the war. They offer a model to the rest of the region. Once at peace, Central America can move forward through regional negotiations to reduce the level of armaments in every nation to a lower, balanced level commensurate with the needs of legitimate defense. Resources once devoted to war could then be used to build schools and vaccinate children, to provide credit to farmers, to create new opportunities for entrepreneurs, and to strengthen systems of justice and law. In the last decade, more peoples and nations have secured their freedom than in any other period in human history--nowhere more dramatically than in Latin America. If we have the vision and the will, we can make the Americas a model of the new, more hopeful world we are building now that the Cold War has been won. Ours can be a hemisphere in which democracy is the only legitimate form of government, the rule of law is respected, and human rights are secure. Ours can be a hemisphere whose citizens freely trade across our borders from Alaska to Argentina and greater prosperity is shared by all. Our hemispheric community of democratic nations can unite to combat the scourge of narco-trafficking, stop the spread of weapons of mass destruction, and preserve our natural environment. And we can see the day when throughout the Americas every nation will dwell in friendship with its neighbors, and all our citizens will live in peace. Yesterday, we took a step toward realizing that vision. Today, together, let us take another step by recommitting ourselves to the hard, rewarding work of securing the peace and consolidating democracy both here in El Sal-vador and throughout this hemisphere. The Bible says blessed are the peacemakers. God bless you all--and may God bless the people of El Salvador.(###)
Dispatch, Vol 3, No 3, January 20, 1992 Title:

Greater Balance in US-Japanese Economic Relations

Bush Source: President Bush Description: Address at Toys-R-Us grand opening, Kashihara, Japan Date: Jan, 7 19921/7/92 Category: Speeches, Testimony, Statements Region: East Asia Country: Japan Subject: Trade/Economics [TEXT] (introductory remarks deleted) What we see here today is success, for Japanese consumers as well as for ourselves, in the effort to eliminate a major barrier in the Japanese distribution system. For years, American retailers have sought to compete in the Japanese market. After all, Japan has the second largest economy in the world, and its consumers are increasingly demanding wider choices for themselves and their families, lower prices, and, certainly, uncompromising quality. But, American companies before weren't making any headway because the regulations, particularly the large retail store law, made opening new foreign retail stores virtually impossible. From the beginning of our Administration we've had a key trade policy objective, and that was to break down the barriers to the sales of US goods and services. In 1990, we launched the Structural Impediments Initiative--or what we call SII, those talks to remove the underlying economic barriers to trade and balance of payment adjustment and to promote open markets. SII has indeed enabled us to take aim at the rules that prevent our companies from competing in Japanese markets. When Japan changed its large store law, it lowered a key barrier to open trade. Japanese consumers--your buyers here in this country--and our workers stand to reap the benefits. Japanese consumers will get stores with wider selections, more competitive prices, and quality goods from around the world. US companies will be able to operate businesses and sell their products in this huge and promising market. I think we're all here today because Toys-R-Us was ready to take up the challenge of SII, and it literally lived up to the old Japanese saying, "Three years on top of a stone." We have much to learn from the 3-year battle that Toys-R-Us waged to pry open the $6-billion Japanese toy market. After all, this is the first time that a large US discount store has opened here, and it's blazed a trail. Now, all kinds of companies can come on in, from toy stores to high-tech outlets. I hope that Toys-R-Us is but the first in a long line of American retailers to locate in this great country. Greater access is an exciting idea, and it will help create more jobs in America. The opening of the Japanese retail market gives our manufacturers, particularly the small manufacturers, a conduit into markets they otherwise couldn't have touched and brings the Japanese consumer a wide choice of world-class goods. The relationship between the United States and Japan is one of the world's most vital economic relationships. Our two nations produce over 40% of the world's gross national product, and, therefore, our actions, taken separately or together, affect many countries. We've worked together in close cooperation, for instance, at the economic summit, in the G-7 framework, and in international financial institutions to promote global growth and shared prosperity--Japan and the United States working for those common goals. But, we still face many challenges. Each partner must realize that it benefits from free trade and open markets. Our economic relationship is not a zero-sum game for either side. Though we're pleased at the success so far, we're not satisfied with just reaching these piecemeal trade agreements. In the cause of free and open trade, we want agreements that produce permanent improvement in access and in US sales to Japanese markets and permanent improvement in the lives of Japanese consumers. What makes me so happy here today is that we see here the beginning of a dynamic, new economic relationship--one of greater balance. There is much that we can do for the world based on a forward-looking global partnership between two great nations, two powerful economies, and two resourceful, innovative peoples. Together we will go far. Just two last points: I will do my level best as President of the United States to preserve and strengthen the important relationship between Japan and my great country. It has a lot to do with world peace. It has a lot to do with world economic stability. It has a lot to do with two great economic and democratic countries working together, setting an example for other countries around the world. So, I want to say to the Minister and to the Prime Minister, I will do my part to keep this relationship on track. Lastly--and this is the end, you'll be happy to know--I just want to thank all of the people in this wonderful city who have given Barbara Bush, over here, and me such a warm welcome. When we got off that helicopter here and came by those wonderfully warm, smiling faces, extending to us a warm, Japanese welcome, we felt very, very grateful and very emotional. That said an awful lot about the friendship between Japan and the United States of America. Thank you, and may God bless each and every one of you. (###)
Dispatch, Vol 3, No 3, January 20, 1992 Title:

Closer US-Japanese Cooperation

Scowcroft Source: National Security Adviser General Brent Scowcroft Description: Excerpts from news conference on discussions between the President and Japanese Prime Minister Miyazawa, Tokyo Date: Jan, 8 19921/8/92 Category: Speeches, Testimony, Statements Region: East Asia Country: Japan, USSR (former) Subject: Trade/Economics, United Nations [TEXT] The meeting this morning began with the Prime Minister expressing his appreciation for the comments of the President relative to the Pearl Harbor ceremonies on December 7. He expressed his feeling that the spirit of generosity and friendship that the President displayed at that time meant a great deal to the Japanese people. The President replied that he had written many of those words himself and that they were from the heart and that, in his mind, they expressed his honest feeling and his belief that the US-Japanese relationship was a vital one--never more vital than at the present time in the present world situation. The President discussed the relationship in three general categories, beginning with the strategic relationship, which he felt was still an important ingredient of the overall relationship: that while the world had changed dramatically and the overriding threat from an aggressive, menacing Soviet Union had dissipated, the experience a year ago with Saddam Hussein demonstrated the dangers still abroad in the world and that uncertainty, turbulence, and instabilities still demanded the need for a security system worldwide--but also in the Asian Pacific area. Then, the President went on to discuss the global, political relationship and the changes taking place in the world--the growth of freedom and democracy around the globe which it was in the important interests of both parties to stimulate and support. He discussed the Commonwealth of Independent States--the former Soviet Union--and the need there to contribute to economic reform, to stability, and to the growth of democracy; the problems of Eastern Europe and their struggling to transform political and economic systems; other areas in the globe such as, for example, Cambodia, with the need for contributing to the UN operation to promote--to allow elections eventually in that country; places like El Salvador, where the coming of a truce opened the way for reconstruction which would put demands on the world; [and] other areas-- Africa, so on and so forth. In other words, [he expressed] that the agenda, the political agenda, of cooperation in this global partnership had never been more urgent. The third area that the President mentioned was the commitment to an open world trading system, which he underscored was in the interest of both parties. He expressed, and the Prime Minister concurred in, the importance of a successful conclusion of the Uruguay Round [of the General Agreement on Tariffs and Trade] as a step toward the improvement of an open world trading system. Progress based on the Dunkel report made such a successful conclusion look perhaps within reach. There was extensive discussion on the importance to both countries of an open trading system, with the President underlining that the collapse of an open trading system was perhaps of greater consequence to Japan than to almost any other important industrialized country. From there, of course, the conversation went into the bilateral issues, [with] the President commenting--in terms of this open trading system-- that in the American position the Japanese market was not yet open and that both sides needed to cooperate in the interest of opening the Japanese market to the imports of the United States and, of course, to other countries so that the trading system was a balanced trading system open to all on the basis of equal opportunities. They discussed many of the sectoral issues in general terms: automobiles, auto parts, computers, financial services, glass, paper, so on and so forth. The two leaders also agreed on a strategy for world growth, and I believe later today there will be a statement put out dealing with that, and I think [US Treasury] Secretary Brady will probably brief later on. But, essentially, it was an agreement to stimulate growth in a lagging world economy. Both the United States--both sides have taken steps so far in the reduction of interest rates, and in budget packages--the United States will have one, of course, in the State of the Union [address]--which are stimulative and they will encourage--I believe [Treasury] Under Secretary Mulford is right now in Europe--encourage the Europeans to join this strategy for world growth. There was also a discussion of the superconducting supercollider, and the Prime Minister expressed a positive attitude toward the project. The two leaders agreed that the project needed to be revised in terms that would make it more truly an international project. They agreed on a study group which would do this within the year. The Prime Minister expressed his agreement with--of course, I've expressed the meeting from the viewpoint of the President and his comments. The Prime Minister agreed with the thrust of the President's comments [and] agreed with the need for closer cooperation bilaterally. The President made a comment [that] at a time when the United States was immensely preoccupied with developments in a rapidly changing and turbulent world, it was important that the Japanese help in a way that did not force [them] to excessive preoccupation with economic problems at home. The issue of rice was mentioned, but in connection with the conclusion of the Uruguay Round to deal with issues such as that of rice that are of particular sensitivity to individual countries. I'm sure there are other topics that I have omitted. Well, I might just say [that] at lunch there was . . . a general discussion of issues of international concern like developments in the Soviet Union--in the former Soviet Union, the Commonwealth of Independent States--in China, North Korea, and so on. . (###)
Dispatch, Vol 3, No 3, January 20, 1992 Title:

World Economic Growth

Bush Miyazawa Source: President Bush and Prime Minister Miyazawa Description: Released by the White House, Office of the Press Secretary, Tokyo, Japan Date: Jan, 8 19921/8/92 Category: Speeches, Testimony, Statements Region: East Asia Country: Japan, USSR (former) Subject: Trade/Economics, United Nations [TEXT] President Bush and Prime Minister Miyazawa today announced A Strategy for World Growth designed to strengthen the world economy. The President and Prime Minister expressed concern that growth of the world economy in 1991 slowed to the lowest level in nearly a decade. They recognized that the outlook for growth of the world economy this year is weaker than previously expected. This situation could adversely affect the prospects for income and jobs, undermine the efforts of newly emerging democracies and the developing countries to implement sound market- oriented economic reforms, and raises the specter of renewed protectionism. The United States and Japan are the two largest countries in the world economy, together accounting for nearly 40% of total global production and more than 20% of world trade. The President and Prime Minister, aware of a special responsibility placed on their countries by their position, recognize that each country needs to pursue responsible economic policies that strengthen the international economy and global trading system. They have decided to undertake domestic policies to improve growth prospects, as a part of a cooperative effort which contributes to the attainment of sustainable growth with price stability and the promotion of global economic recovery. Prime Minister Miyazawa, with these considerations in mind, stated that the Government of Japan will submit to the Diet the FY 1992 budget and the Fiscal Investment and Loan Program aimed at strengthening domestic demand by increased public investment through the central government and local governments, and contributing to the world through its official development assistance (ODA) and other measures, despite tight fiscal conditions. Prime Minister Miyazawa stated that the Government of Japan will monitor the progress of the above measures so as to assure that the expected effects are realized. The recent decision by the Bank of Japan to reduce interest rates is also intended to maintain sustainable growth with price stability. Toward the same end, President Bush also stated that he would be submitting to the Congress a comprehensive program to strengthen US growth and competitiveness. The details of the program will be contained in the President's State of the Union message and his budget proposals for FY 1993 to be announced later this month. The President noted that the recent reduction in interest rates reflected the determination by the Federal Reserve to facilitate US economic recovery and growth. The President also reaffirmed his commitment to achieve a substantial reduction of the US budget deficit over the medium term. The President and Prime Minister reviewed developments in financial markets and agreed that recent exchange rate movements were consistent with current economic developments. They expressed confidence that the above measures and developments will contribute to correction of external imbalances. President Bush and Prime Minister Miyazawa expressed their continued support for ongoing economic policy coordination among G-7 countries as essential for achieving their common objectives as expressed in this statement. They stressed the importance of continued cooperative efforts and called on other industrial countries to join with them.
Dispatch, Vol 3, No 3, January 20, 1992 Title:

A Strategy for World Growth

Fitzwater Source: The White House, Office of the Press Secretary Description: Tokyo, Japan Date: Jan, 8 19921/8/92 Category: Fact Sheets Region: East Asia Country: Japan, United States Subject: Trade/Economics [TEXT]
Concept: The Strategy
The strategy is an important declaration of the respective commitments of Japan and the United States to economic growth. The strategy recognizes that economic growth is the number one issue facing the world economy, and therefore is intended as a cooperative policy response to strengthen world economic growth. The effectiveness of the strategy would be enhanced by expanding it to include other countries, and we have initiated discussions with other G-7 members to obtain their views on how it could be broadened.
Economic Outlook
Growth in the G-7 countries slowed to 1% in 1991 from 2.6% in 1990. It is projected to recover to 2% in 1992. Inflation in the G-7 declined to 4.4% last year from 4.8% in 1990. It is projected to fall to 3.7% in 1992. The Government of Japan officially forecasts Japan's rate of economic growth at 3.5% in FY 1992 (starting April 1). This is based on a 3.6% increase in domestic demand and a 0.1% decline for net foreign demand. Inflation is forecast to decline to 2.3% in FY 1992 from 2.9%.
Major Elements of the Strategy
-- The strategy recognizes the special responsibilities of both Japan and the United States to pursue policies that strengthen the international economy and global trading system. -- The strategy expresses a joint commitment to economic growth and to undertake cooperative domestic policies to improve growth. -- The strategy could be broadened to include other countries prepared to support measures to increase growth. -- The strategy sets forth specific fiscal and monetary measures to support growth. -- Japan will submit to the Diet a budget to increase domestic demand as a means of achieving 3.5% growth and a decline in the external surplus in FY 1992. The Japanese Government will monitor progress of these measures so as to assure that the expected effects are realized. -- The Federal Reserve has progressively lowered interest rates over the course of 1991. The recent decline in the Fed's discount rate by one full percentage point reduced that key lending rate to 3.5%--the lowest level in 25 years. -- On December 30, the Bank of Japan reduced its official discount rate by 0.5% to 4.5%. Note: Japanese FY 1992 runs from April 1, 1992 through March 31, 1993. In the United States, FY 1993 runs from October 1, 1992 though September 30, 1993. The Japanese Economy in 1991 and the FY 1992 Budget Fact Sheet released by the White House, Office of the Press Secretary, Tokyo, Japan, January 8, 1992.
Domestic Economy
-- The Japanese economy grew 2% (quarter/quarter) in the first quarter 1991, 0.7% in the second quarter, and 0.4% in the third quarter. -- Industrial production, not seasonally adjusted (NSA), in Japan in November was down 0.6% from the prior November. New housing starts (NSA) in November were down 19.4% from a year ago. -- Japan's current account surplus is increasing in FY 1991 to approximately $73 billion from $34 billion in FY 1990, as officially forecast by Japan. The official Japanese forecast for FY 1992 is for a small decline. -- Inflation in Japan (seasonally adjusted) fell to 3.1% in November (year/year) from a peak of 4% in January 1991.
Japanese Government Budget
-- The proposed General Account Budget of the central Government of Japan calls for spending outlays in FY 1992 of 72,218 billion yen, an increase of 2.7% over FY 1991. Operating outlays, which excludes debt service expenses, grants to local governments, and investments financed by sales of government-held NTT [Nippon Telegraph and Telephone] shares, will total 38,699 billion yen, an increase of 4.5%. -- Spending on public investment financed from the General Account will total 6,941 billion yen, an increase of 5.3%. -- The cabinet also has approved a budget for the "off-budget" Fiscal Investment Loan Program (FILP) totaling 40,802 billion yen, an increase of 10.9% over FY 1991. -- Of this total, 5,224 billion yen will be targeted to public works implementing institutions, an increase of 10.8%. Excluding FILP funds set aside for pension fund management purposes, FILP money available for landing and investment purposes will increase 10.8% to 32,262 billion yen. Note: Based on official Japanese Government data. (###)
Dispatch, Vol 3, No 3, January 20, 1992 Title:

The US and Japan: Building New Bridges of Cooperation

Bush Source: President Bush Description: Remarks at the State Dinner, Imperial Palace, Tokyo, Japan Date: Jan, 8 19921/8/92 Category: Speeches, Testimony, Statements Region: East Asia Country: Japan, United States Subject: Trade/Economics, Democratization [TEXT] Your Imperial Majesties and honored guests: On behalf of the American people, we wish to thank you for the warmth of this reception and for your tireless efforts in support of the relationship between our two great nations. The United States and Japan today stand on the threshold of a new era of cooperation, in which our nations seek to build a new world of freedom and democracy. The task before us is daunting--one which will require vision and courage. But it is one from which we cannot shrink. Too much depends on us. As leaders of this new world, we face several challenges together: -- Addressing the new security requirements of a changed world; -- Promoting freedom and democracy; and -- Generating world economic growth and prosperity. Tonight, we celebrate the essence of this new world order and the opportunity to be true partners in its construction. We see how former enemies can become close allies and friends--real friends--each supporting, competing, growing, dreaming. Each understands that we must resolve our differences fairly and constructively. Our people both believe in work, community, faith, and family. We know how democracy supports the cause of peace among nations. We realize that although half a world may separate us, great ties unite us--ties that are economic and military; moral and intellectual. Your Majesty, the name you have chosen for your reign can be translated as "achieving peace." That choice signifies your deep personal commitment to this noble aspiration and your resolve not to revisit the tragedies of the past. We are now closer to achieving the blessings of peace than we have been at any time in this century. When the great Japanese novelist, Kawabata, received the Nobel Prize in literature, the citation praised him for "building a spiritual bridge spanning East and West." In this changing world where the walls that once divided whole nations from each other are crumbling, we all must become both bridges to and partners in a new world order. In that spirit and with heartfelt thanks, Your Majesty, for your wonderful hospitality, I ask all of your guests to raise their glasses. To your health and to the bridge of friendship and common purpose uniting our countries; to those who built it and cross it still; and to the prosperity of our two great peoples. (###)
Dispatch, Vol 3, No 3, January 20, 1992 Title:

US-Japan Interests In a World Transformed

Brady Source: Treasury Secretary Nicholas Brady Description: Remarks delivered on behalf of President Bush to he Japanese welcoming committee, Tokyo, Japan Date: Jan, 9 19921/9/92 Category: Speeches, Testimony, Statements Region: East Asia Country: Japan, United States Subject: Trade/Economics, Democratization [TEXT] (introductory remarks deleted) Mr. Prime Minister, members of the Diet, distinguished guests. It is a deep honor to be here today. President Bush has asked me to make his remarks to you this afternoon. Although there have been minor grammatical changes in pronouns, this is the President's speech; these are his words. We come to Japan at the culmination of a long and productive journey. Today we stand at a turning point in history; the Cold War is over, the Soviet Union has vanished, and with it the delusions of communism. Centuries-old enemies in the Middle East are tempering ancient hatreds in pursuit of peace. Freedom's phoenix is rising from the ashes of tyranny--and nations from Latin America to Eastern Europe and from Cambodia to Mongolia. Freedom's rebirth was painful; its triumphs enscribed in blood; its truce seared by the fires of war and sacrifice. This century has taught us two crucial lessons: first, that isolationism and protectionism lead to war and deprivation; and second, that political engagement and open trade lead to peace and prosperity. These last few years we again learned of the power of ideas. Technologies that transmit ideas in the blink of an eye carry the human spirit over barricades and through barbed wire. They hurdle walls designed to hold back the truth. We live in a world transformed, shrunken by swift travel and instant communication; drawn closer by common interests and ambitions; propelled forward by people's imaginations and dreams. As leaders of this transforming world, the United States and Japan must help build a new international order based on the rule of law, respect for human rights, and political and economic liberty. We must shape a world enriched by open trade and robust competition; a world that will create a better life for people of all nations. The United States lies between two great oceans, the Atlantic and the Pacific. We are a nation of the Atlantic by birth, but our ties to the Asia- Pacific region deepen daily. Our two-way trade is now $310 billion annually, one-third larger than that with Europe. Our prosperity and yours are indivisible. American businesses cannot flourish in Asia unless the economies of Asia thrive and grow. At the same time, Japan's growth needs American markets open and growing. Since 1975, the number of Americans of Asian origin has nearly quadrupled. What happens here is very important to us, and at the core of our continuing Asian engagement stands our alliance with Japan. At each stop during his visit to the region, the President has stressed the challenges we must face: addressing the new security requirements of our transforming world, promoting democracy, and generating world economic growth and prosperity. Let me expand upon that by focusing on the special relationship that the United States enjoys with Japan. Rarely in history have two nations with such different and differing historic cultural roots developed such an extraordinary relationship. Our people are bound by shared security, by democracy, and by our deep economic ties. There are those who doubt the future of this relationship. There are reasons for tension. Here in Japan you have a saying, "Some rain must fall to prepare the ground for building." We can all see that without progress we may be in for some rough weather. And I must be frank in saying that there are problems in our economic relationship. Speaking not only for the United States, but for many developed countries, Japan's trade surplus is too high and its market access too restricted. President Bush has come to Japan as a friend, seeking solutions to these concerns, believing that the expansion of free and fair trade will do nothing but strengthen our relationship. We in the United States are confident about our capacity for partnership. Our areas of common interest are too important. Consider the four key areas of our joint relationship.
The US-Japan Security Alliance
First, the US-Japan security alliance. We enjoy a strong security bond with Japan. Japan's generous host nation support for US forces stationed here is an important demonstration of shared responsibilities. Let us make the most efficient use of our defense resources by building greater coordination of our military forces and by promoting the two-way flow of defense technology. Such cooperation enhances our security and builds even stronger political ties between us. The Gulf crisis sparked spirited debate here about Japan's global role. That makes it all the more profound that no nation outside the Gulf region provided more generous financial support than did Japan. The American people and peace-loving people everywhere appreciate deeply your contribution--Japan's contribution--to the UN coalition in the Gulf. Even before the Gulf war, but especially in its aftermath, Japan has continued to define its growing role in world affairs. An increasingly active, engaged, and responsible Japan is critical to a forward-looking post- Cold War community. That community will not exist unless its leading powers lead.
Foreign Policy Cooperation
This brings us to the second area of our relationship: our foreign policy cooperation. We must fulfill the bright promise of our global partnership. Together, we produce 40% of the world's GNP. We contribute together 40% of all bilateral aid. We have the ability to marshal unrivaled resources to build a better future, if our foreign policies are well coordinated. America has a responsibility here, but it is a responsibility we share with Japan. The upcoming conference on assistance to the nations of the former USSR, now the Commonwealth of Independent States, is a timely example of such foreign policy coordination. The collapse of the Soviet Union has also spurred questions within Japan about the durability of [the] US-Japan alliance. For decades, this alliance has stood as the bulwark of American-Japanese international cooperation. It is today every bit the linchpin of regional stability and bilateral cooperation that wise men foresaw years ago. The demise of the Soviet Union may confront us both with ominous dangers, but it also presents us [with] a historic opportunity. The leadership Japan and other Asian nations can provide to help transform a once-totalitarian empire into market-oriented and democratic states helps guarantee the future peace and stability of our world. Let me add that with the changes in the former Soviet Union, the United States sees no reason why Japan should not regain the Northern Territories. We share this goal, and in whatever way we can, we will help you attain it. We cannot imagine meeting the foreign policy challenges of our time without Japan as a partner. That is why today Prime Minister Miyazawa and President Bush will issue a document called the Tokyo Declaration, setting out the basic principles and major challenges of our global partnership. By putting into words the fundamentals of the two great partners we hope to guide the way through the turbulent waters ahead. We must be clear about our responsibilities and our requirements, for our renewed alliance will do much to define the shape of the post-Cold War world.
Increasing Awareness--And Reducing Tensions
Third, we must deepen our understanding of each other. For all of our interaction politically and economically, our peoples know too little of the other's history, traditions, and language. We welcome the work of the Center for Global Partnership in expanding exchanges and interactions: intellectual, scientific, and cultural. Thanks to such programs, our two nations will have an ever-increasing number of people who have lived in each other's country, speak each other's language, and understand more fully how important we are to each other. Although more than 200,000 Asian students now study in American colleges and universities, more Americans must immerse themselves in Asian societies and cultures. As the exchange of free people and ideas flows between our nations, and as the Cold War ends in victory for our cause, our economic relations have taken center stage. This brings me to the fourth and most important point. If we are to expand our economic ties, we must face up to the economic tensions that threaten our relations. We must reduce those tensions now by opening markets and by eliminating barriers to trade and investment. We are now each other's largest overseas trading partner. Japan will sell about $90-billion worth of goods and services to the United States this year; we will sell nearly $50 billion to Japan. Our economies--the world's two largest and most technologically advanced- -have become irreversibly intertwined. Closing markets and restricting trade have previously brought the world to the brink of economic disorder. Isolation and protectionism must remain the sleeping ghost of the past, not the walking nightmares of the future. We must reject these failed notions in the sure knowledge that expanding markets mean expanding jobs and increasing prosperity for both our countries. We must ensure a continued strong two-way economic relationship between Japan and the United States, with markets more open to new goods and services; manufacturers more open to new competitive ideas; the financial services industry competing on a fair basis; and an equitable flow of technology on both sides.
Shared Responsibility For The World Economy
Our two countries share a special responsibility to strengthen the world economy. Yesterday, the President and the Prime Minister announced a strategy for world growth which commits both our countries to domestic policies to stimulate growth. Expanded domestic demand in Japan translates into additional exports to Japan for American products and jobs at home. And, we are seeking broad support for growth policies among other industrialized countries as well. Many American businesses learned during the past decade that the old ways no longer work in our changing international marketplace. Our companies have cut costs, improved quality, and championed innovation. As a result, our products sell in markets everywhere they have access. Candidly, such access is still limited in Japan. We must reduce the trade imbalance between us--not through managed trade, through gimmicks or artificial devices, but simply by gaining true and welcome access to your markets. We want to create fair opportunities for traders and investors, both buyers and sellers, by removing the barriers both seen and unseen to open an equitable trade. American business doesn't need a handout and doesn't want one. Some say that perhaps it is time to help the United States, out of a sense of pity or compassion. Let me tell you, we are looking for no such help. What the United States wants from Japan is for Japan to recognize its international economic responsibility for its own sake and for the sake of the global marketplace upon which Japan depends. When we express appreciation to those who seek to open Japanese markets, it is not because we need a handout, but because we know an open Japan is good for us all. Our companies simply expect the chance to compete fairly in markets around the world. Our government remains committed to open markets, and we will further reduce our own trade barriers as our friends dismantle their own. Our two countries have embarked on a unique experiment in economic independence called the Structural Impediments Initiative. In this effort, each side pinpoints the other's barriers to competitiveness, and each commits to reduce them. We both must reinvigorate this commitment to market access, whether for high-quality American products or quality American services. The beneficiaries will be the workers and consumers on both sides of the Pacific. Improving our economic relations includes further opening your markets. It means greater openness in many sectors of the Japanese economy still biased against outside investment. These practices hurt American companies, but they also hurt Japanese consumers. Americans want the same things you want--a better quality of life for themselves and their families. Americans never say, please raise our prices, and I bet the Japanese don't either. Every worker is also a consumer and economic competition brings them great choices and lower prices. In fact, the Toys-R-Us store that the President visited in Kyoto offers prices up to 30% lower than its Japanese competition. The stunning success of the consumer's response to its sister store north of Tokyo tells the same story. That's good for us, and it's good for you. US export business is stronger than ever. We sold more exports last year than ever before. We enjoy a trade surplus with Europe. About one-third of our economic growth between 1985 and 1990 was attributable to merchandise exports. To Japan, our manufactured exports are up 70% since 1987, a $20-billion increase that represents almost half-a-million jobs.
Equal Access and Fair Play
Still, the overall trade deficit with Japan remains large. And I might add, its persistence is truly the exception among our trading partners. Let me say this: we have waited a long time, but now the time has come for equal access; fair play is in both our interests. As you know, the United States and Japan also face the urgent challenge of leading the way to a successful conclusion of the Uruguay Round [of the General Agreement on Tariffs and Trade--GATT--negotiations]. Because of the benefits we each derive from free trade, Japan and the United States bear special responsibility for tackling the remaining difficult issues quickly and decisively. The success of the round depends on bold, far- sighted leadership. We must lift our gaze to the glimmering horizon of broader prosperity and not worry over the stones in our immediate path. Yes, all of us have problems with portions of the so-called Dunkel draft, but we cannot let the progress it represents slip through our fingers. If we allow that draft to be picked apart by special interests, who wins? Not our people; not yours; not the less developed nations; no one. The GATT round is the world's best hope for expanding trade for all countries. Men and women from all walks of life and all parts of America constantly tell the President this. They believe very, very strongly in creating a level playing field for everyone. We want all our trading partners to give the United States' companies the same kind of opportunities that their firms enjoy in the United States. That's not just free trade, that's fair trade. And it creates a basis for even greater freedom and greater prosperity for all.
Improving US Competitiveness
Many of our Japanese friends argue that the United States must improve its competitiveness, and they're right. We recognize that some of our bilateral trade imbalance stems from causes other than restricted market access. One reason for Japan's competitiveness is because Japan has saved and invested at a rate double that of the United States. You have focused on applied research and development and new manufacturing technologies. Your companies have established fine quality control systems. You have developed a highly educated labor force and have taken the long view to develop markets abroad. There is much for us to learn from you. We are taking steps to boost our competitiveness. We can and will increase our rate of savings and investment. We will continue to boost our manufacturing excellence. We will reduce the budget deficit. To stimulate innovation, risk, and longer- term business outlook, the President is pushing for investment incentives, R∧D credits, and capital gain tax cuts. In America, cutting capital gains is politically extremely difficult. It would be easier if our politicians saw the positive effect on Japan's competitiveness due to low capital gains rates. America must raise its educational standards. Our America 2000 education strategy will fuel a revolution for better quality schools. This is another path to competitiveness. The education achievements of Japan and others in the Asia-Pacific region inspire us. That is why President Bush has invited the countries of the Pacific Rim to send their education ministers to Washington for a conference this spring to seek new ways to cooperate and to learn from each other's accomplishments. With the President today, traveling with him, is a delegation of America's top business leaders. They've come to explore new business opportunities in all the nations the President has visited. Every one of them can tell you that despite the fact that our economy is facing some new tough times right now, America still draws upon tremendous strengths. Our basic research is the best anywhere. We have many of the world's finest universities. American technology remains on the cutting edge in many advanced fields, such as computers and biotechnology. Our society is energetic, creative, and talented. It has the added advantage of drawing upon the strengths and insights of many cultures--including Japan's. The chief executive officers accompanying the President will also tell you that they care about American jobs. They care about American exports-- obviously, so does the President. We know that the Asia-Pacific market offers enormous potential to those American businesses that will accept the challenge of competition. That same competition has propelled Japan toward world leadership. Open markets around the world have provided Japan with economic prominence. Japan must now join the ranks of world leadership in strengthening free markets and freedom.
The Three Pillars of Friendship
Finally, let me leave with you a message that the President wished to give directly to the people of Japan. And, I quote: The American people are your friends. Friendship must be built upon three pillars: fairness, trust, and respect. We expect nothing less, and we ask for nothing more. Today marks a turning point for us in many ways. Together, we face the next millennium. A new order for the ages, a new world of freedom and democracy. We stand as the world's powers with the future presenting us with a decision. The United States has made its choice against isolationism and in favor of engagement. Against protectionism and for expanding trade. Today, we bid Japan to do the same because engagement and open trade are in your best interest. Together, let us shape a new and open world, a world of vigorous competition and dazzling innovation. Let us build a world of greater prosperity and peace than ever before. If not for the sake of ourselves, then for the sake of our children. This is the finest legacy that we could bequeath to them. Thank you very much. (###)
Dispatch, Vol 3, No 3, January 20, 1992 Title:

US-Japan Relations

Bush Miyazawa Source: President Bush, Prime Minister Miyazawa Description: Opening statements from press conference, Tokyo, Japan Date: Jan, 9 19921/9/92 Category: Speeches, Testimony, Statements Region: East Asia Country: Japan, United States Subject: Trade/Economics, Democratization [TEXT] President Bush: The substantive focus of my visit has been the three very productive sessions that I had with Prime Minister Miyazawa, and old and respected friend. As leaders of the two largest economies in the world with a wide range of security and political, as well as economic interest, we had an awful lot to talk about. And on the basis of these discussions, I can make three fundamental observations about US-Japan relations. First, our security alliance is sound. The US-Japan security treaty remains the core of stability in East Asia, a region still beset with the uncertainties of a world in profound change. Japan's generous host-nation support agreement has helped ensure our continuing ability to retain a forward- deployed presence in Japan, a presence that is essential to American, Japanese, and regional interests. Second, as we enter the post-Cold War era, with its many challenges and opportunities, increased cooperation between the United States and Japan on global issues and regional problems is absolutely essential to achieve the foreign policy objectives of both countries. In this visit, we've dedicated ourselves to building a more prosperous and peaceful world, and for this purpose, the Prime Minister and I have stressed the common purposes of our global partnership, and we've set forth the principles for this partnership in a Tokyo declaration. Third, we made progress in our all-important economic relationship. Over the past few years, we've worked with some success to open markets here so both our countries can benefit from increased trade, lower prices, better goods, and more jobs. And, indeed, we've increased our exports to Japan some 70% since 1987 and cut our trade deficit with Japan by about 30%. My Administration has negotiated 11 arrangements to increase our exports in specific sectors. This trip adds another significant but interim step to that progress, and, of course, we will keep pressing ahead and monitoring progress. I believe the US Government and our business leaders have sent a strong message about the importance of fair access to markets. The detail in the action plan, including the voluntary import proposals involving many billions of dollars and increased US content for Japanese cars made in the United States, make it clear that the message has been received. Our agreement on government computer procurement will open up additional opportunities in a large leading-edge industry for the United States. We've worked out specific commitments in other sectors, representing increased opportunities for US exports, including auto parts, paper, and glass, and resolved over 50 standards problems--this is the key--50 standards problems that have impeded American businesses. We've agreed to expand our Structural Impediments Initiative by adding new commitments that will help us follow up on this trip. And I'm pleased that we have worked out together the announcement from a day ago, a strategy for world growth. That one will stimulate and be helpful to both economies. I'm also particularly pleased that Japan and the United States could agree on a strong joint statement about the [GATT Director Arthur] Dunkel draft for the Uruguay Round negotiations. We're sending a joint message that I hope will build momentum to drive the GATT [General Agreement on Tariffs and Trade] negotiations to a successful finish. There is no doubt that we have much more work to do abroad and at home to increase US exports and the jobs they create. Yet, we've made headway; there's no question about that. And I'm committed to accomplishing more in the future using all available measures. In conclusion, this visit has been a success. It has reaffirmed our vital political, security, and economic relationship. It has advanced our goal of leveling the playing field in US-Japan competition, of further opening Japan's markets to our exports. So this progress translates into jobs and economic growth in America, because I know the American worker can compete with anyone around the world if given a fair chance. And that's exactly what we intend to do, and the accomplishments I've mentioned here aim us directly in that direction. Thank you, Mr. Prime Minister. Prime Minister Miyazawa (through interpreter): This is the first time in 8 years that we've welcomed a US President here, and we had three meetings with him. We were able to have a very candid exchange of views, and I'm also very glad and satisfied that we've been able to strike very close personal relations. As shown by the dismemberment of the Soviet Union at the end of last year, the world in the post-Cold War era doubtless is developing new moves and trends toward the building of peace and democracy. And in creating such historic developments, I should like to express once again my deep respect to President Bush for his outstanding foresight and leadership, as shown in the START [Strategic Arms Reduction Treaty] agreement, as well as the nuclear disarmament proposal. Japan and the United States--steadfastly maintaining freedom, democracy, basic human rights, and market economies--together account for 40% of the global GNP [gross national product], establishing unprecedented prosperity together, and I think it's important that we together work to further promote the building of the new world order--the new world. It is important that the United States continue to exercise leadership, and Japan wishes to actively support those efforts by the United States. I believe that the meetings that I had with the President would mark a concrete first step toward the building of a Japan-US global partnership. I had a candid exchange of views on various trade and economic issues as well and, in addition to steadily implementing our economic policies, as reflected in the joint statement issued yesterday, I believe we were able to engage in substantive discussions on various measures related to the automobiles and automotive parts and components, the central area of [the] Japan-US trade issue today. Now, in view of the closeness of the economic ties between our two countries, frictions would be inevitable from time to time, and, of course, our agreement this time will not necessarily resolve all the problems. But, I believe that the discussions I had with the President have been very useful, and I am satisfied with the meetings. Furthermore, on the basis of the discussions that I have had with the President at this time, we have come up with the Tokyo Declaration and the attached document called the Action Plan. These documents are, indeed, very dramatic in that they spell out how our bilateral relations ought to be, bearing in mind the 21st century, and also spell out our responsibilities and roles that our two countries respectively should play and the issues we together ought to address. We are determined to further strengthen global partnership between our two countries on the basis of these documents. I believe it is quite unprecedented that countries in terms of human history, countries with so strikingly different cultures and history, have established a deep interdependence and cooperation. It is unprecedented that countries with such different cultural and historic backgrounds share the future together, and together would work for the world. I believe that we are attracting a lot of attention from around the world, and I intend to do my best, together with the President, to respond to the adaptations. (###)
Dispatch, Vol 3, No 3, January 20, 1992 Title:

The Tokyo Declaration On the US-Japan Global Partnership

Bush Miyazawa Source: President Bush, Prime Minister Miyazawa Description: Declaration by President Bush and Japanese Prime Minister Miyazawa, Tokyo, Japan Date: Jan, 9 19921/9/92 Category: Speeches, Testimony, Statements Region: East Asia Country: Japan, United States Subject: Trade/Economics, Democratization [TEXT] The President of the United States of America and the Prime Minister of Japan declare:
PREAMBLE
From tragic conflict 50 years ago, Japan and the United States have developed a highly productive and mutually beneficial relationship of close political, security, economic, scientific, and cultural cooperation. The two countries are now highly interdependent at all levels of their societies. They base their cooperation on shared principles of political and economic freedom, democracy, the rule of law, and respect for human rights. The two countries recognize that this cooperation made an important contribution to weathering the chill of the Cold War era and in promoting four decades of global stability and prosperity. The two governments recognize that today, in the post-Cold War era, new political and economic challenges confront the US-Japan relationship. Economic issues have assumed new prominence. To ensure that the United States and Japan fully exploit opportunities for cooperation, both countries place the highest priority on taking effective measures to address factors underlying economic friction, with a focus on issues in their trading and investment relations. Japan and the United States recognize the benefits to their societies of the close cooperation they have enjoyed in the post-war period and are committed to building on this foundation to create an even closer partnership. Both acknowledge that a closer relationship must be constructed on enhanced mutual understanding and shared interests. As the two largest market oriented economies and democracies in the world, Japan and the United States accept a special responsibility for shaping the new era. The two governments therefore resolve to join in a Global Partnership based on these enduring values to help build a just, peaceful and prosperous world and to meet the challenges of the twenty-first century.
Cooperation to Promote World Peace and Prosperity
The US-Japan alliance provides the foundation for our Global Partnership. Together, both nations pledge to: work together to maintain world peace and security; promote development of the world economy; support the world- wide trend toward democratization and market-oriented economies; and meet new transnational challenges. To achieve these goals, the two countries will cooperate to strengthen the GATT [General Agreement on Tariffs and Trade] multilateral trading system; rein-vigorate the UN organization; advance arms control and the non-proliferation of weapons of mass destruction; assist the developing world to promote growth and stability; and protect and improve the global environment. The United States and Japan recommit their resources and the talents of their peoples to the purposes of the UN Charter. As nations of the Asia-Pacific region, the United States and Japan are committed to promoting prosperity, reducing tensions, and enhancing political cooperation in the region and to take steps to strengthen the bonds of the Asia-Pacific community while respecting its diversity. To this end, Japan and the United States recognize the Asia-Pacific Economic Cooperation (APEC) framework as the forum for enhanced regional efforts to promote open markets, sustain dynamic economic growth, and build political cooperation. Japan and the United States will also broaden the scope of their cooperation in the rest of the world, including the Middle East, Central and South America, Africa, and Europe, with particular attention to supporting countries that are in transition to democracy and market economies. The two nations will strengthen cooperation in their respective economic assistance programs in the developing world to promote growth and stability, help reduce the developmental gap between industrialized and developing countries, enhance respect for democratic values and human rights, and ameliorate global problems, including environmental degradation, refugees, illicit narcotics, disease, and aging.
Political and Security Relations
The United States and Japan reaffirm their commitments to the 1960 Treaty of Mutual Cooperation and Security which is central to the US-Japan Alliance. This alliance provides the political foundation on which the two countries cooperate in assuming their respective roles and responsibilities for securing world peace and stability in their Global Partnership. The two governments pledge to maintain and enhance the effective operation and credibility of the treaty and its related arrangements. As countries with vital interests in the Asia-Pacific region, Japan and the United States recognize the continuing importance of the defense relationship to the peace and stability of this vast and diverse region. The two governments will work closely with others to reduce tensions and instability in East Asia and build regional political cooperation in the post- Cold War environment. Aware of the need for continuing vigilance as we enter a new era now marked by instability and uncertainty, the United States will maintain the forward deployed forces necessary to preserve peace and stability in the region. Japan, for its part, will continue to make available to the United States, in accordance with the Security Treaty, the use of facilities and areas in Japan and, under the new Host Nation Support Agreement, will bear an increasing share of the costs of stationing these forces in Japan. Both countries will take steps to increase cooperation between their defense forces and enhance the two-way flow of defense technologies. The two countries agree to utilize fully the renewed Security Consultative Committee mechanism to oversee their security relationship.
Economic and Trade Relations
Aware of the high degree of interdependence of their economies and mindful of the need to encourage closer cooperation to promote conditions of sustainable real growth with price stability and employment, the two governments are resolved to enhance openness and oppose protectionism in their commercial, financial, and investment markets. To this end, Japan and the United States will strengthen policy initiatives to reduce structural impediments. Japan and the United States further pledge to make their economies the most open, productive, and competitive in the world, thereby building a sustainable trade and investment relationship. They will encourage private- sector initiatives to strengthen further exchanges and cooperation between industries in both nations.
Science and Technology
Mindful of their positions as world leaders in scientific research and technical development, the two governments undertake to expand scientific and technical cooperation, including basic research, based on reciprocal access, for the benefit of both societies and the human community. They pledge to increase research on global environmental issues and will take a leadership role in fostering an international consensus on measures to meet this challenge.
Enhancement of Mutual Understanding and Exchanges
Acknowledging that communication and understanding between peoples of both countries are essential to an enduring partnership, the United States and Japan pledge to undertake and support programs which will advance the rich and diverse intellectual, cultural, and public interaction between their two peoples. The two governments will place particular emphasis on language training, intellectual and educational exchanges, and community- level programs designed to increase mutual understanding. The President and the Prime Minister pledge the full support of their governments to the purposes of this declaration to build the Global Partnership. The two governments will develop new areas of cooperation in support of common geopolitical, economic, and humanitarian objectives in a manner that provides for an equitable sharing of responsibilities and benefits. (###)
Dispatch, Vol 3, No 3, January 20, 1992 Title:

Fact Sheet: US-Japan Global Partnership Action Plan

PA Source: Office of Public Communication, Bureau of Public Affairs Date: Jan, 20 19921/20/92 Category: Speeches, Testimony, Statements Region: East Asia Country: Japan, United States Subject: Trade/Economics, Democratization, Security Assistance and Sales, Environment, Resource Management, Cultural Exchange, International Law [TEXT] Following the January 1992 discussions between President Bush and Prime Minister Miyazawa in Japan, the Governments of the United States and Japan resolved to join in a global partnership "to help build a just, peaceful and prosperous world and to meet the challenges of the twenty-first century." To carry out the aims of this partnership, the two countries formulated a Plan of Action, which details specific initiatives designed to enhance cooperation in support of common political, economic, and humanitarian goals. Part I of the Action Plan outlines measures aimed at defining mutual responsibilities in the areas of security, science and technology, and cultural exchange. Part II covers economic and trade relations. A summary follows.
Part I
Cooperation To Promote World Peace and Prosperity.
The United States and Japan pledge to continue bilateral discussions and to intensify consultations among the G-7 countries and political dialogue between Japan and NATO. They further agree to strengthen existing agreements limiting the proliferation of weapons of mass destruction, to promote international efforts to combat terrorism, and to support the role of the United Nations. They undertake to enhance collaboration between their respective foreign aid programs to promote democratization and stability in the developing world. The two countries underline their commitment as nations of the Asia-Pacific region to contribute to the reduction of tensions in the region by encouraging policies of reform and openness in both political and economic sectors. They agree to broaden the scope of their cooperation in other areas: assistance to the members of the Commonwealth of Independent States for political and economic reform; assistance to Central and Eastern Europe in the transition to market economies; support for democratization and market reforms in Latin America, the Caribbean, and Africa; and participation in the multilateral phase of the Middle East peace process.
Political and Security Relations
The United States and Japan pledge to consult closely regarding the deployment of US forces in Japan. They agree to enhance defense cooperation, including the conclusion of agreements for joint research, the strengthening of surveillance capabilities, and further two-way technology transfer. Both countries look forward to the first consultative meeting between the US Secretary of State and the Secretary of Defense, and the Japanese Minister for Foreign Affairs and Minister of State/Director-General of the Defense Agency, to be held at the earliest opportunity.
Cooperation on Environment, Quality of Life, and Science and Technology.
The United States and Japan pledge to study the feasibility of assisting developing countries to construct national centers for the management and conservation of natural resources. They will work for the conservation of world forests, will cooperate with UN organizations to facilitate the transfer of environmentally sound technologies to developing countries and countries with economies in transition, and will encourage programs within the private sector. They agree to increase efforts on behalf of the resettlement of refugees, to collaborate on narcotics issues, to establish a US-Japan Joint Commission on Aging, and to support the UN General Assembly initiative to improve its emergency response capabilities. In the fields of science and technology, the two countries reaffirm their commitment to research on global change and undertake to cooperate in several international projects, such as the Human Frontier Science Program, research on human genome analysis, and the International Thermonuclear Experimental Reactor.
Enhancement of Mutual Understanding and Exchanges.
The United States and Japan agree to expand educational and parliamentary exchanges, to promote more extensive Japanese language training in the US, and to support joint studies on issues relating to the US-Japan global partnership.
Part II
Economic and Trade Relations.
To promote openness in their commercial, financial, and investment markets, the United States and Japan pledge to support efforts by Japanese companies through "Business Initiatives for Global Partnership" to increase imports to Japan and to encourage local procurement by Japanese-affiliated companies operating abroad. The Japanese Government will provide foreign companies with a list of those Japanese companies which have pledged greater cooperation in these areas. To complement initiatives in the private sector, the Government of Japan will establish "foreign access zones" to concentrate facilities related to imports within and near international airports and seaports around the country. A debt-guarantee system and an import-promoting credit line will be inaugurated to facilitate efforts by private firms to expand imports. It also will expand low-interest loans to promote direct investment and will institute tax measures to alleviate burdens for foreign companies. The US Export-Import and the Ministry of International Trade and Industry (MITI) will cooperate to expand US exports, with a contribution from MITI of $5 billion. Both countries will work to increase contacts between their respective business communities. The Japanese Government agrees to institute steps to increase public sector procurement of competitive foreign computer products and services and to conduct a survey on conditions in the paper industry with a view toward expanding market access for foreign firms. MITI will encourage Japanese companies to increase imports of flat glass, while the Ministry of Construction will facilitate efforts by foreign firms to meet Japanese standards for glass building materials. The Government of Japan, through the Office of the Trade and Investment Ombudsman, will continue to respond to market access issues raised by foreign companies. As of April 1992, it will implement measures to increase government procurement opportunities. The two countries, through the US-Japan Working Group on Financial Markets, will continue to work to liberalize financial markets in both countries. The United States and Japan pledge to accelerate implementation of programs to increase sales opportunities for US vehicles and auto parts in Japanese markets. These will include expansion of research and development in the United States by Japanese manufacturers and greater participation by the United States in trade shows in Japan. The US Government will draw upon existing programs, such as the Department of Commerce's Export Promotion Program and the USDOC-MITI Joint Trade Expansion Program, to encourage trade of automobiles and auto parts and will encourage US industry to take advantage of Japanese Government import promotion programs. The President and the Prime Minister pledge the full support of their governments to explore new areas of cooperation and to build the global partnership. (###)
Dispatch, Vol 3, No 3, January 20, 1992 Title:

US-Japan Economic Issues: Telecommunications

Fitzwater Source: Fact sheet released by the White House, Office of the Press Secretary Description: Tokyo, Japan Date: Jan, 8 19921/8/92 Category: Fact sheets Region: East Asia Country: Japan, United States Subject: Trade/Economics, Resource Management, Media/Telecommunications [TEXT] US firms are making significant progress in exporting telecommunication products to Japan. In 1990, US exports were $375.3 million, up from $323.1 million in 1989 and $263.3 million in 1988. The US telecommunications products trade deficit with Japan was $1.3 billion in 1990 and $2.1 billion in 1989. The United States expects the deficit will show a slight decrease when final 1991 figures are available. -- US-Japan telecommunications relations for the last 3 years have been influenced mainly by Section 1377 of the 1988 Trade Act, which requires an annual review of other countries' compliance with telecommunications trade agreements with the United States. -- The 1989 review resulted in an agreement that provides foreign firms increased access to Japan's mobile communications markets. After the 1990 review, agreements were reached improving foreign access to Japan's international value-added network (IVAN) and digital equipment markets. Further agreements on IVANs were reached following 1991 review. -- The United States also conducts an annual review of the Nippon Telegraph and Telephone (NTT) Agreement, which commits NTT, Japan's major domestic telecommunications carrier, to follow competitive procurement procedures. NTT procurement from US firms has risen steadily since the agreement went into effect in 1981, reaching $31 million in 1990. But foreign firms account for only about 4-5% of total NTT purchases. -- NTT recently announced a decision to purchase US communications satellites (valued at about $600 million) which will be delivered in 1995. The procurement was conducted under the terms of the 1990 US-Japan Satellite Agreement. -- Japan is setting up nationwide digital cellular telephone service, expected to begin in 1994. The process is being overseen by the Ministry of Posts and Telecommunications, which has approved two new consortia to provide this service in addition to existing service providers. US firms are members of both consortia.
Dispatch, Vol 3, No 3, January 20, 1992 Title:

US-Japan Economic Issues: Achievements

Fitzwater Source: Fact sheet released by the White House, Office of the Press Secretary Description: Tokyo, Japan Date: Jan, 9 19921/9/92 Category: Fact sheets Region: East Asia Country: Japan, United States Subject: Trade/Economics [TEXT] Twenty-three companies in the Japanese electronics, automobile, and machinery industries are planning to increase their level of imports from the world by $10 billion in Japan Fiscal Year (JFY) 1993, compared with JFY 1990. -- Eighty-eight corporations and 22 Japanese trade associations have expressed their support for increasing imports under MITI's (Ministry of International Trade and Industry) Business Global Partnership Initiative, but all of their voluntary import plans have not yet been completed.
Strategy for World Growth: Joint Statement
-- Both countries recognize global growth is a top priority, that they have a special responsibility because of their size (40% of world GNP), and that they will take actions to strengthen the international economy. -- Japan will cut the discount rate by 0.5% to 4.5%. -- The Japanese Government will "monitor progress [of fiscal actions] to assure the expected effects."
Agreement on Government Computer Procurement Covering Both Products and Services
-- Foreign (mostly US) companies have 41% of the $16.1-billion Japanese private sector [computer] mainframe market but only 6% of the $3-billion Japanese public sector mainframe market. (US industry estimates the overall public sector market for hardware, including mainframes, at $6 billion. The agreement would cover both computer products and services, but the United States has no data on the size of the service market.) -- The agreement expands Japanese public sector procurements of competitive foreign computer products and services, provides greater transparency, increased publication of information on procurement opportunities, an impartial bid protest system, and safeguards against unfair bids. By the end of March 1992, the Government of Japan and the US Government will agree on measures to substantially increase market access for foreign firms exporting paper products to Japan. -- The American Paper Institute estimates that Japan's total paper market (including pulp) was $65 billion in 1989. -- Import penetration of the paper product market in Japan is only 3.7% from all sources, 2.2% from the United States--so there are large, untapped market opportunities. -- The Japan Fair Trade Commission (JFTC) will survey the paper industry from the perspective of competition policy. The Government of Japan will take steps to substantially increase market access for competitive foreign firms making efforts to export flat glass to Japan, including the following: -- MITI will facilitate the efforts of foreign firms to increase sales in the Japanese market. -- MITI will encourage Japanese glass end-users to make efforts to increase imports of flat glass under its import expansion program. -- MITI and the JFTC will encourage all Japanese glass manufacturers to put anti-monopoly compliance programs into effect by February 1992. One purpose of these programs is to ensure that the distribution system is open to competitive foreign glass manufacturers. -- The Ministry of Construction will facilitate the efforts of foreign firms to meet Japanese building standards for flat glass and other glass building materials through briefings, English- language texts, and other steps. -- The JFTC will survey the glass industry from the perspective of competition policy. -- The Government of Japan and the US Government agree to meet as either side may deem appropriate to exchange information relevant to the aforementioned steps. The foreign (primarily US) share of the semiconductor market stood at 14.3% in the third quarter of 1991, up from 9% in 1986. Both sides affirm their agreement, under which the United States hopes to achieve 20% market share by the end of this year. Forty-nine non-auto standards problems (more than two-thirds of those submitted) were resolved. This will help industries in sectors such as processed foods, cosmetics, industrial equipment, transport machinery, pharmaceuticals, and medical devices. Japan took steps to expand opportunities for foreign companies to sell products to the Japanese Government (government procurement). According to the Foreign Ministry, this would basically double the value of government contracts open to bidders to about $6.3 billion. Both sides agree to reinvigorate the Structural Impediments Initiative talks with new commitments. The JFTC will survey four industries--paper, glass, autos, and auto parts-- from the perspective of competition policy. MITI is expanding its cooperation with the US Export-Import Bank to expand US exports to Japan and developing countries. From May to December 1991, projects involved about $3 billion of developing country imports. MITI expressed its intention to allocate, for further expansion of this program, $5 billion of trade insurance resources over several years.
Dispatch, Vol 3, No 3, January 20, 1992 Title:

US-Japan Achievements On Autos and Auto Parts

Fitzwater Source: Fact sheet released by the White House, Office of the Press Secretary Description: Tokyo, Japan Date: Jan, 9 19921/9/92 Category: Fact sheets Region: East Asia Country: Japan, United States Subject: Trade/Economics [TEXT] -- Increase purchase of US auto parts from a level of about $9 billion in Japan Fiscal Year (JFY) 1990 to about $19 billion in JFY 1994. --This includes an increase of Japanese imports from about $2 billion to about $4 billion. --Japanese firms in the United States say they will increase the share of US parts from their estimate of about 50% to 70%; assuming a 50% increase in production by Japanese firms in the United States, procurement from plants in the United States will more than double, from about $7 billion to about $15 billion. --MITI and the US Department of Commerce will complete a study on the sourcing of auto parts by the US and Japanese vehicle manufacturers to back up these statements. -- Seek to increase the sales of US-produced autos in Japan. MITI and US Commerce Department will complete a study by July 1992 of impediments to sales of US autos in Japan. The Government of Japan will be prepared to undertake efforts based on the study to increase opportunities to sell US- made autos in Japan. -- Japanese auto firms will increase their exports to Japan of autos made in the United States. -- Japan will offer tax and financial incentives (low interest rate loans, debt guarantee facilities) to support US firms investing in Japan. -- Major Japanese auto distributors have announced their willingness to undertake dual dealerships to sell US cars and have eliminated prior consultation requirement clauses in dealership contracts. -- Japanese firms will promote design-ins for part suppliers, expand research and development centers in the United States and assist in distribution for parts producers. -- With regard to standards and certification issues under OTO [Japanese Office of the Trade Ombudsman] procedures, six of the 14 outstanding issues had been resolved at the technical level as of January 1, 1992. Of the remaining eight issues, six are in resolution and two are to be resolved imminently. -- The JFTC will survey the auto and the auto parts sectors from a completion policy perspective before the end of March 1992.
Dispatch, Vol 3, No 3, January 20, 1992 Title:

Japan Corporate Program

Fitzwater Source: Fact sheet released by the White House, Office of the Press Secretary Description: Tokyo, Japan Date: Jan, 9 19921/9/92 Category: Fact sheets Region: East Asia Country: Japan, United States Subject: Trade/Economics [TEXT] The Japan Corporate Program (JCP) is a 5-year export promotion effort begun in January 1991. The goals of the program are to identify barriers in the Japanese market, create models of success by the 20 participating companies, and help open the market to all US firms. Each JCP company has signed a participation agreement outlining its obligations under the program and emphasizing its long-term commitments to the market. For example, each company must make a minimum of four trips to Japan a year, must participate in one trade event a year, must translate product material into Japanese, and modify products as necessary for the Japanese market. The Department of Commerce offers JCP firms help in arranging appointments with Japanese Government and business officials and personalized counseling and assistance. The 20 firms chosen to participate in the JCP were announced in November 1990. The firms reflect a cross-section of small, medium, and large firms and represent a variety of industries and geographic areas. Some are new to the Japanese market, and others already have experience there. All the firms have products that sell well in other markets. Commerce Secretary Robert Mosbacher led a mission to Tokyo of 14 of the JCP firms' chief executive officers in April 1991. Executives or JCP firms think greatest benefits of the JCP are the high profile given to JCP firms in Japan, the high-level contacts made during the April mission, and the advice from and introductions by the US Embassy staff in Japan. JCP firms are now in the process of following up on contacts made as a result of the program and holding consultations with the Embassy and MITI. The new-to-market firms are searching for partners or distributors, opening offices, and recruiting. Even though sales have not increased for many of the firms in the first year, participants think that the program will substantially support their entry or advancement in the Japanese market.
Dispatch, Vol 3, No 3, January 20, 1992 Title:

Major Projects Agreement

Fitzwater Source: Fact sheet released by the White House, Office of the Press Secretary Description: Tokyo, Japan Date: Jan, 9 19921/9/92 Category: Fact sheets Region: East Asia Country: Japan, United States Subject: Trade/Economics [TEXT] After nine meetings, the United States and Japan on June 1, 1991, concluded the 2-year review of the 1988 Major Projects Arrangements (MPA). As a result, a formal exchange of letters constituting a new agreement was signed on July 31, 1991. The new agreement provides procedural improvements including a simplified ranking system, new procedures for design/build procurements, and a comprehensive complaints mechanism featuring an independent procurement review board. The agreement expands coverage to 23 new projects, bringing the total covered to 40. Seventeen of the projects, worth an estimated $6.4 bil-lion, have been approved for construction. An additional six projects, worth an estimated $20.3 billion, are in the planning stage. The agreement will be reviewed after 1 year to expand the scope of coverage and to adjust the procedures as necessary. The total value of contracts awarded to US firms under the MPA since 1988 is about $375 million. No precise figures are available because the US share of certain contracts has not been disclosed.
Dispatch, Vol 3, No 3, January 20, 1992 Title:

Joint Trade Expansion Program

Fitzwater Source: Fact sheet released by the White House, Office of the Press Secretary Description: Tokyo, Japan Date: Jan, 9 19921/9/92 Category: Fact sheets Region: East Asia Country: Japan, United States Subject: Trade/Economics [TEXT] The Joint Trade Expansion Program is a cooperative project undertaken by the Department of Commerce and Japan's Ministry of International Trade and Industry. The program was announced in March 1990 by Secretary Mosbacher and MITI Minister Muto. The Joint Trade Expansion Program consists of four major areas for cooperation: -- Data and information exchange; -- Market research; -- Trade events; and -- Trade facilitation services. The program implements ongoing trade promotion activities of the Department of Commerce and MITI, including MITI's support for the Japan Corporate Program. Specific areas of cooperation are seminars, briefings, industry experts consultations, and monthly informal exchanges between commercial officers of both governments. The Joint Trade Expansion Program was renewed for 2 years in April 1991 during Secretary Mosbacher's Japan Corporate Program Trade Mission to Japan.
Dispatch, Vol 3, No 3, January 20, 1992 Title:

US-Japan Economic Relations

Fitzwater Source: Fact sheet released by the White House, Office of the Press Secretary Description: Tokyo, Japan Date: Jan, 9 19921/9/92 Category: Fact sheets Region: East Asia Country: Japan, United States Subject: Trade/Economics [TEXT] -- US merchandise exports to Japan have increased more than 70% since 1987, the peak year for the US trade deficit, (from $28.2 billion in 1987 to $48.6 billion in 1990). -- Japan is America's largest market for agricultural products (over $9.8 bil-lion in 1990--not including manufactured agricultural products). -- US manufactured goods now account for 64% of US total exports to Japan, up from 55% in 1985. -- The US trade deficit with Japan has fallen from $56 billion in 1987 to $41 billion in 1990. -- In Japan Fiscal Year 1990, sales of US companies operating in Japan (550 firms) were $66.5 billion. -- In 1990, Japan provided $2.9 billion in host nation support for the 50,000 American military personnel in Japan. Japan has agreed to increase the amount, with a commitment to cover about 73% of non-salary costs by 1995. -- Late in 1991, Japan agreed to support the UN ban on drift-net fishing, which will go into effect at the end of this year. -- Japan is ending trade in the endangered hawksbill and olive ridley sea turtles by the end of 1992. -- Japan ended high-seas salmon fishing as of the end of 1991. -- US firms participating in Japanese overseas development assistance projects increased to about $250 million in Japan Fiscal Year 1990. The US Government and the Government of Japan are co-sponsoring a program to introduce US firms to the Japanese overseas development assistance system, including conferences in US cities. -- Last year, the Japanese Government and the US Export-Import Bank agreed to increase cooperation in the financing and support of US exports to Japan and developing countries. From May to December 1991, projects involved $3 billion of developing country imports. MITI expressed its intention to allocate $5 billion of trade insurance resources over several years for the further expansion of this program. (###)
Dispatch, Vol 3, No 3, January 20, 1992 Title:

A Turning Point in the US-Japan Economic Relationship

Bush Source: President Bush Description: Remarks at Andrews Air Force Base, Maryland Date: Jan, 10 19921/10/92 Category: Speeches, Testimony, Statements Region: East Asia, Pacific Country: Japan, United States, Australia, Singapore, South Korea Subject: Trade/Economics [TEXT] Let me first say that it is great to be home, and Barbara and I want to thank all those who made this important trip a success. [Treasury] Secretary Brady is with us here, [Commerce] Secretary Mosbacher, and then our first- ever presidential delegation of business leaders. I want to thank also, in addition to them, our ambassadors, their dedicated staff, and so many others. And, I really want to offer my heartfelt thanks to countless people at home and abroad who so kindly offered prayers and good wishes when I had that very brief but dramatic bout with the flu. Our mission was uniquely American. America is a world leader, not just because of our military or economic might, but because we have always held the conviction that we are part of something larger than ourselves. We now live in an entirely different economic world than a generation ago, and in a completely different political and security environment than just 1 year ago. Foreign relations have never before been so important to our well-being at home. When we foster democracy abroad, when we strengthen our security engagements with our allies and friends, when we work to open markets and expand trade, we make a priceless investment in our own children's future. The Tokyo meeting I concluded yesterday with Prime Minister Miyazawa caps a successful series of talks with four of America's most important friends in the Asia-Pacific region. With each of these countries--Australia, Singapore, Korea, and Japan--we are forging ever-stronger bonds of democratic values, of mutual security and of economic growth through expanding trade. Each of the four nations that I visited are robust democracies. With each we confirmed the necessity of providing nourishment for the blossoming of democracy throughout the region. At each stop on our journey, I reaffirmed America's interest in fundamental commitment to Pacific security. We and our Pacific partners are determined to maintain strong defenses, to protect our hard-won peace and stability during this new era, and to provide a security umbrella under which political pluralism and market economies can flourish.
Renewing America's Economy; Generating Global Growth
In each country on this mission, we made progress on a top priority of this trip--renewing the strength of the American economy and generating world economic growth. Now, while I'm disappointed that the unemployment numbers went up in December here, our work over the last few days will help open markets for American companies and provide more jobs for our workers. Make no mistake about it, our progress this week will translate into progress on jobs and economic growth in America. The results will be clear and measurable. Everywhere we've been, I've sought urgent action on the successful conclusion to the Uruguay Round of the GATT [General Agreement on Tariffs and Trade] talks. The best achievement we can offer our farmers, our manufacturers, and indeed our service industries, is a GATT breakthrough in unprecedented new accords for open trade. With Australia, we reaffirmed our alliance and announced plans to conclude a new trade and investment framework agreement. With Singapore, we announced an agreement to conclude a new bilateral investment treaty as well. Everywhere I found support for strengthening APEC--that is the new Asia- Pacific Economic Cooperation group--as it promotes trade and economic cooperation around the Pacific Rim. And I've carried our enthusiasm for our North America Free Trade Agreement across the Pacific and shown how it, too, can add to everyone's prosperity by reducing the barriers to trade. Our summit meeting in Tokyo was a turning point in our relationship with Japan, and it highlighted the progress we've made these last few years with that nation. Japan is our largest market for agricultural exports--our largest; now some $8 billion a year. Since 1987, the US merchandise exports to Japan have increased more than 70%, and they now account for 64% of our total exports to Japan--up nearly 10% since 1985. We reinvig- orated our commitment to the bilateral Structural Impediments Initiative talks, and we garnered new support for a successful conclusion to the GATT round. A substantial portion of our trade deficit with Japan is in the auto sector. That is not going to change overnight, but here, too, we made significant progress, not only in terms of selling American cars and automobile parts in Japan but also in raising the percentage of American parts in Japanese- brand cars built in the United States by US workers. Japanese automakers agreed over the next 3 years to increase their purchase of American-made parts from $9 billion to $19 billion.
Opening Japan's Markets
Our summit meeting this week accelerated the opening of more Japanese markets to our exports. In addition to the Japanese car manufacturers, 23 companies in the Japanese electronics, automobile, and machinery industries announced plans to increase American imports into Japan by a total of $10 billion over the next 3 years. Some of this will be to the automakers, and, taken together, represents a welcome increase in exports made in the USA. This week, we breached the wall that kept American exports of computer products and services out of the $3-billion Japanese Government market. Our agreement will expand Japanese public sector procurements of our quality computer goods and services. Our leading edge computer industry employs millions of technologically savvy Americans, and we can expect dramatic gains in this market. We made breakthroughs for access to Japan's huge market for our glass and paper products--virtually untapped markets that are billions of dollars in size. We reaffirmed goals for our higher market shares for semiconductors and then resolved standards problems. These are the invisible barriers to free trade in 49 different sectors of American industry, from processed foods and cosmetics to industrial equipment and machinery.
High US Productivity
Anybody who thinks that Americans cannot compete with the Japanese hasn't talked with these business executives who joined me in Japan, some of whom made the trip all the way. And they haven't seen the recent studies that show overall US productivity is the highest in the world--far exceeding Japan. We must work hard to keep that productivity growing. I know--and these business leaders know--that as long as the playing field is level, American workers can outcompete and outproduce anybody, anyplace, anytime. Yes, we faced a turning point with Japan, and when the time came, we took a major step forward. But it was only a step--one in a long process to achieve markets as open as our own. We will build on these results. We will monitor the progress, and I will keep pressing for jobs and market access when Prime Minister Miyazawa comes to the United States, hopefully in a few months. That ongoing effort includes the strategy for world growth which the Prime Minister and I developed and which we are coordinating with the other industrialized nations. America and Japan are the two largest economies in the world. Together, we comprise 40% of the total world economy, and global growth is a top priority for both of us. Already our two countries have made deep pro- growth cuts in interest rates. Japan cut their discount rate to 4.5%, and as you know, our Federal Reserve has just lowered interest rates a full percentage point--both of which are keys to stimulating long-term growth here and abroad. But clearly, with December's unemployment figures, our economy is not growing fast enough. In my State of the Union message later this month, I will present to the American people my action plan to get it growing faster. And I am looking forward to spelling out our ambitious agenda for economic growth clearly and repeatedly to the American people in this vigorous and exciting political year. I am absolutely confident that the American people will join me in this vision for a new era of expanded markets, of peace and prosperity. So thank you all very much, and thank you for being with us on that trip. I appreciate it enormously. (###)
Dispatch, Vol 3, No 3, January 20, 1992 Title:

Machine Tool Trade With Japan and Taiwan

Fitzwater Source: White House Press Secretary Marlin Fitzwater Description: Beeville, Texas Date: Dec, 27 199112/27/91 Category: Speeches, Testimony, Statements Region: East Asia Country: Japan, United States, Taiwan Subject: Trade/Economics [TEXT] The President has directed that the US Trade Representative negotiate a limited extension of the voluntary restraint agreements (VRAs) with Japan and Taiwan on machine tools. These VRAs were negotiated in 1986 for national security reasons and were scheduled to expire on December 31, 1991. Import restrictions on machining centers, computer-controlled lathes, computer-controlled punching and shearing machine tools, and computer- controlled milling machine tools will be removed progressively over a 2- year period beginning in January 1992. To allow sufficient time for negotiations with concerned countries over the phase-out schedule, we are requesting that Japan and Taiwan extend the existing VRA restrictions on machining centers, computer-controlled lathes, computer-controlled punching and shearing machine tools, and computer controlled milling machine tools, scheduled to expire on December 31, 1991, for an additional 30 days. VRA restrictions on non-computer controlled lathes, non-computer controlled punching and shearing machine tools, and non-computer controlled milling machine tools will expire as scheduled on December 31, 1991. The President also has directed that the following steps be taken to assist the US machine tool industry's ongoing efforts to regain international competitiveness. -- The Secretary of Commerce, as chairman of the cabinet-level Trade Promotion Coordinating Committee, will give special focus to ways to promote machine tools exports. -- US export control regulations will be reviewed to ensure that restrictions on machine tools are kept to the minimum consistent with national security. -- The Secretaries of Defense, Commerce, and Labor will designate officials at the Assistant Secretary level to work together to monitor the industry's performance and to consult regularly with industry representatives. -- The Secretary of Labor will help the machine tool industry improve technical training, human resource management, and the utilization of new and emerging technologies. -- The Secretaries of Commerce and Energy will examine which research and development efforts in the national laboratories could benefit the domestic machine tool industry and will recommend appropriate investment and technology transfer to realize such benefit. -- The Secretaries of Commerce and Defense will continue to implement the Domestic Action Plan of programs to support the revitalization of the US machine tool industry. Key elements of the Domestic Action Plan are as follows: --Support for the National Center for Manufacturing Sciences (amounting to $50 million during fiscal years 1988-91); and --Support by the Defense Department's Manufacturing Technology (MANTECH) research and development program. More than $33 million has been spent for research on machine tools and related technologies over the past 3 years. Funding for related technologies is estimated at $82 million over the FY 1991-95 period. -- The Secretary of Commerce will continue efforts under the US-Japan Cooperation Plan, which was begun in May 1990 to help promote US products to Japanese machine tool users and their subsidiaries in the United States. The President's decision recognizes the importance to US national security of viable domestic machine tool industry. However, the main responsibility for achieving international competitiveness rests with the industry itself. We expect the industry to continue its efforts to improve quality and product lines. (###)
Dispatch, Vol 3, No 3, January 20, 1992 Title:

Status of Iraqi Compliance With UN Resolutions

Bush Source: President Bush Description: Text of a letter from the President to the Speaker of the House of Representatives and the President Pro Tempore of the Senate Date: Jan, 14 19921/14/92 Category: Speeches, Testimony, Statements Region: MidEast/North Africa Country: Iraq Subject: United Nations, Military Affairs [TEXT] Dear Mr. Speaker: (Dear Mr. President:) Consistent with the Authorization for Use of Military Force Against Iraq Resolution (Public Law 102-1), and as part of my continuing effort to keep the Congress fully informed, I am again reporting on the status of efforts to obtain compliance by Iraq with the resolutions adopted by the UN Security Council. Since I last reported on November 15, 1991, the International Atomic Energy Agency (IAEA) and the Special Commission created under UN Security Council Resolution 687 have continued to conduct inspections and other activities related to Iraqi weapons of mass destruction and ballistic missiles. Iraq has not impeded these efforts insofar as they concern sites and activities declared by Iraq and Iraq's participation in the destruction of identified chemical weapons. In the main, however, Iraq continues to be uncooperative and obstructive with respect to inspection of sites identified by the Special Commission and the IAEA (based on their own sources of information) as potentially involving clandestine, proscribed activities. Since obtaining extensive and detailed documentation of Iraq's nuclear weapons program in September 1991, two additional inspections have been conducted of facilities judged to be directly associated with the testing and development of high-explosive components of the implosion system of a nuclear weapon, contrary to Iraq's explanation of their purpose. Iraq maintains that it conducted studies but had no program to develop nuclear weapons. This position is inconsistent with the documents obtained in September and the characteristics observed in subsequent visits to Iraqi facilities. These documents and facilities reveal a well-funded and broadly based nuclear weapons development program involving sophisticated facilities. Additional analysis and investigation in this area are required. The Special Commission has continued to compile a detailed and comprehensive picture of Iraq's chemical and biological weapons program. From November 17 to November 30, 1991, the Special Commission conducted a chemical and biological weapons inspection and visited, at short notice, 13 sites designated by the Special Commission as potentially having chemical weapons or biological weapons. Initial reporting indicates no chemical or biological weapons activities at these sites. In addition, a Special Commission team visited Iraq in mid-November to discuss issues related to Iraq's destruction of identified chemical weapons and agents, with particular emphasis on safety issues. The Special Commission has made recommendations to Iraq regarding an Iraqi design for a mustard agent incinerator, the destruction of nerve agents caused by caustic hydrolysis, and the breaching and draining of munitions. It is estimated that destruction of such munitions can commence early in 1992. Two ballistic missile inspections have been completed since my last report. To date, Special Commission inspection teams have supervised the destruction of 62 ballistic missiles, 18 fixed missile launch pads, 33 ballistic missile warheads, 127 missile storage support racks, substantial amounts of rocket fuel, an assembled 350mm supergun, components of two 350 and two 1,000mm superguns, and one ton of supergun propellant. The United States believes, however, that Iraq continues to possess large numbers of undeclared ballistic missiles. Questions also remain about whether all aspects of Iraq's attempts to produce the Scud missile indigenously and to develop a more capable solid-propellant missile have been discovered. The United States continues to assist the United Nations in its activities, including by conducting U-2 surveillance flights and providing intelligence. Although the Special Commission has received important monetary contributions from other nations, including Kuwait and Saudi Arabia, the shortage of funds readily available to the Special Commission has become acute, particularly because the Special Commission and the IAEA are now beginning to remove spent irradiated fuel from Iraq. Since my last report, additional important progress has been made in implementing the Security Council resolution on compensating the victims of the unlawful invasion and occupation of Kuwait. The Governing Council of the UN Compensation Commission held its third formal session in Geneva, November 25-29, 1991, and continued to make rapid progress in establishing the framework for processing claims. The Governing Council adopted criteria for the remaining categories of claims of individuals, claims of corporations, and claims of governments and international organizations (including claims for environmental damage and natural resource depletion). In addition, the Governing Council set July 1, 1993, as the deadline for filing claims of individuals under $100,000, with expedited consideration to be given to claims filed by July 1, 1992. The Governing Council has scheduled meetings in January, March, and June 1992 to address additional issues concerning the compensation program. In accordance with paragraph 20 of UN Security Council Resolution 687, the Sanctions Committee continues to receive notice of shipments of foodstuffs to Iraq. The Sanctions Committee continues to consider and, when appropriate, approve requests to send to Iraq materials and supplies for essential civilian needs. To date, Iraq has declined to use UN Security Council Resolutions 706 and 712 to sell $1.6 billion in oil to generate revenues for the purchase of foodstuffs for Iraqi citizens. On November 24, 1991, the Secretary General's representative for the UN humanitarian program in Iraq entered into a Memorandum of Understanding with Iraq covering the period January 1, 1992, to June 30, 1992. This Understanding establishes the framework for UN humanitarian activities (primarily the provision of food, medical care, and shelter) in Iraq, which are conducted through centers staffed by UN and personnel not affiliated with governments. The Understanding contemplates the use of up to 500 UN armed guards to protect UN personnel, assets, and operations. On January 2, 1992, the Government of Turkey extended for 6 months the authority for US Armed Forces to operate in Turkey in furtherance of Operation Provide Comfort. Through the International Committee of the Red Cross (ICRC), the United States, Kuwait, and our allies continue to press the Government of Iraq to comply with its obligations under Security Council resolutions to return all detained Kuwaiti and third-country nationals. Likewise, the United States and its allies continue to press the Government of Iraq to return to Kuwait all property and equipment removed from Kuwait by Iraq. Iraq continues not to cooperate fully on these issues and to resist unqualified ICRC access to detention facilities in Iraq. I remain grateful for the support of the Congress for our efforts to achieve Iraq's full compliance with relevant UN Security Council resolutions, and I look forward to continued cooperation toward achieving our mutual objectives. Sincerely, George Bush (###)
Dispatch, Vol 3, No 3, January 20, 1992 Title:

Further US Contributions to UN Humanitarian Programs in Iraq

Tutwiler Source: State Department Spokesman Margaret Tutwiler Description: Released by the Office of the Assistant Secretary/Spokesman, Washington, DC Date: Jan, 15 19921/15/92 Category: Speeches, Testimony, Statements Region: MidEast/North Africa Country: Iraq Subject: United Nations, Development/Relief Aid, Military Affairs [TEXT] The United States has pledged an additional $36 million for the extension of humanitarian programs in northern Iraq in response to a UN appeal for $145 million issued on January 8. The full funding of this international appeal will permit the United Nations to continue its relief programs in northern Iraq for an additional 6 months, providing assistance to the hundreds of thousands of Iraqis who were forced by Saddam Hussein's forces to flee their homes last April and who have been unsettled again by the recent actions of the Iraqi military. Saddam Hussein's Government, by refusing to implement Security Council Resolutions 706 and 712 that provide a mechanism for paying for food, medical supplies, and other essentials, continues to inflict suffering and deprivation on hundreds of thousands of Iraqis. Five hundred thousand or more people in northern Iraq still require assistance and support with winterization, repatriation, delivery of basic foodstuffs, health care, and the presence of UN guards. Of the $36-million pledge, $13 million is to go to the World Food Program for food aid requirements, including internal transportation. Fifteen million dollars will go to UNHCR [UN High Commissioner for Refugees] for refugee and repatriation projects, including the provision of shelter, materials, and food. The remaining $8 million will be used for other requirements as determined in cooperation with the UN Office of the Executive Delegate. The United States already has contributed $94 million to UN agencies, $6.9 million to private organizations, and over 63,000 metric tons of food for refugees and displaced persons in Iraq. This, together with Operation Provide Comfort, brings the total of previous US contributions to nearly $600 million. The United States believes the need for continued assistance is clear and urgent and hopes that its pledge will encourage other donors to contribute generously and quickly so that the appeal may be fully met. (###)
Dispatch, Vol 3, No 3, January 20, 1992 Title:

Lifting the US Embargo Against Cambodia

Tutwiler Source: State Department Spokesman Margaret Tutwiler Description: Released by the Office of the Assistant Secretary/Spokesman, Washington, DC Date: Jan, 10 19921/10/92 Category: Fact Sheets Region: Southeast Asia Country: Cambodia Subject: Trade/Economics [TEXT] President Bush announced on January 4 in Singapore that the United States has lifted its embargo against Cambodia. -- The President's memorandum to the Secretaries of State, Treasury, and Commerce directing that the embargo be lifted is dated January 3, effective date of the lifting of the embargo. -- Secretary Baker had announced that this decision would be made as soon as the UN began to implement the settlement plan; UN military officers are now deployed at the four factional headquarters, the Mixed Military Working Group has met, and the Supreme National Council met for the first time in Phnom Penh on December 30. Lifting the embargo removes all mandatory restrictions on exports, imports, financial transactions (other than the continued freeze on blocked accounts), telecommunications, and travel, occurring after January 2, 1992. -- The Department of Treasury no longer requires licenses for any new trade or financial transactions with Cambodia. -- The amendment of OFAC [Office of Foreign Assets Control] Regulations pertaining to Cambodia will appear in the Federal Register shortly. -- The Department of Commerce will also amend its regulations as appropriate to exempt Cambodia from existing foreign policy export controls implementing the embargo. It is preparing guidance for exporters for the interim period before regulations are published in the Federal Register. -- Pending the publication of these new export control regulations, however, exporters are still required to apply to the Department of Commerce for authorization to export. -- The assets of the Cambodian Government and Cambodian nationals which are in the United States or within the jurisdiction or control of persons subject to US jurisdiction and which are now blocked under the Foreign Assets Control Regulations will remain blocked, however, until a settlement agreement is reached with a new Cambodian Government. -- The US decision to lift the embargo is part of our overall effort to support the UN settlement in Cambodia and to remain fully engaged in the Asia-Pacific region. -- This action does not affect the embargo against Vietnam. (###)
Dispatch, Vol 3, No 3, January 20, 1992 Title:

UN Security Council Votes on the Situation in the Occupied Territories

UN Source: UN Security Council, United Nations Description: Resolution 726, New York City Date: Jan, 10 19921/10/92 Category: Fact Sheets Region: MidEast/North Africa Country: Israel Subject: United Nations, Democratization [TEXT]
UN Security Council Resolution 726 (January 6, 1992)
The Security Council, Recalling the obligations of Member States under the United Nations Charter, Recalling its resolution 607 (1988), 608 (1988), 636 (1989), 641 (1989), and 694 (1991), Having been apprised of the decision of Israel, the occupying Power, to deport twelve Palestinian civilians from the occupied Palestinian territories, 1. Strongly condemns the decision of Israel, the occupying Power, to resume deportations of Palestinian civilians; 2. Reaffirms the applicability of the Fourth Geneva Convention of 12 August 1949 to all the Palestinian territories occupied by Israel since 1967, including Jerusalem; 3. Requests Israel, the occupying Power, to refrain from deporting any Palestinian civilian from the occupied territories; 4. Also requests Israel, the occupying Power, to ensure the safe and immediate return to the occupied territories of all those deported; 5. Decides to keep the matter under review. VOTE: Unanimous (15-0).
Dispatch, Vol 3, No 3, January 20, 1992 Title:

US Position: UN Security Council Votes on the Situation in the Occupied Territories:

Pickering Source: Thomas R. Pickering, US Permanent Representative to the United Nations Description: New York City Date: Jan, 6 19921/6/92 Category: Speeches, Testimony, Statements Region: MidEast/North Africa Country: Israel Subject: United Nations, Democratization [TEXT] The US Government believes that deportation of individuals from the occupied territories is a violation of Article 49 of the Fourth Geneva Convention as it pertains to the treatment of inhabitants of occupied territories. Any persons charged with wrongdoing should be brought before a court of law based on the evidence and be given a fair trial, which would afford a full judicial process. If found guilty, parties should be imprisoned. We have repeatedly urged the Government of Israel immediately and permanently to cease deportations and to comply fully with the Fourth Geneva Convention in all of the territories which it has occupied since June 5, 1967. We have, therefore, voted in favor of this resolution which calls on Israel to refrain from deporting any Palestinian civilian from the occupied territories. The US Government also views with concern the rise of violence in the occupied territories in recent months. We condemn, and we believe all countries should condemn, the increasing attacks on and deaths of Israelis, just as we condemn attacks on and deaths of Palestinians. Violence against Israelis and Palestinians is wrong and can do nothing to contribute to a resolution of the Arab-Israeli conflict. We have long called on all parties to avoid unilateral actions, be they words or deeds, that would raise tensions, invite retaliation, or complicate the ability to pursue peace. Unlike on previous occasions, when the Security Council has met to consider similar resolutions, in this case a means for a political dialogue between the parties to the conflict exists. Bilateral talks are scheduled to resume this week. It is there that the parties should turn to find solutions to the complicated problems of this long suffering region. As we have stated in the past, the United States regards the phrase "all the Palestinian territories occupied by Israel since 1967, including Jerusalem," which appears in this resolution, as being merely demographically and geographically descriptive and not indicative of sovereignty. (###)
Dispatch, Vol 3, No 3, January 20, 1992 Title:

Continuing Violence In South Africa

Tutwiler Source: State Department Spokesman Margaret Tutwiler Description: Washington, DC Date: Jan, 7 19921/7/92 Category: Speeches, Testimony, Statements Region: Subsaharan Africa Country: South Africa Subject: Regional/Civil Unrest [TEXT] We have noted over the last several weeks a number of disturbing violent incidents in South Africa, including attacks on government and other public property, schools, and on law enforcement officers. These events have occurred against a background of continuing political violence. We strongly condemn these terrorist actions and extend our sympathies to their victims. The resort to violence at this time in South Africa's history, when the convention for a democratic South Africa has demonstrated that the path of peaceful change is entirely open, is especially reprehensible. Ironically, it appears both white and black extremists are choosing violence to try and gain their objectives. They will fail, for they are sadly out of step with the majority of their countrymen, who have clearly chosen to resolve their differences through the process of negotiations. We call on all parties, whatever their political agendas, to commit themselves fully to furthering their aims through this process of negotiated, peaceful change. (###)