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Press Conference by the Press Secretary 10 July, 1998

1. Announcement regarding the decision by the United Kingdom to reduce the number of its nuclear warheads carried on Trident submarines
2. Korean Peninsula Energy Development Organization (KEDO) negotiations
3. Financial support from Japan to the Russian Federation
4. Visit by Prime Minister Sergei Kiriyenko of the Russian Federation to Japan
5. Visit by President William Jefferson Clinton of the United States of America to the People's Republic of China

1. Announcement regarding the decision by the United Kingdom to reduce the number of its nuclear warheads carried on Trident submarines

   Good afternoon, ladies and gentlemen. Before I take your questions, I would like to make one brief announcement regarding the decision by the United Kingdom to reduce its nuclear warheads. I would like to read to you the statement made by Minister for Foreign Affairs Keizo Obuchi yesterday. Although it is a day old already, I would like to read to you the statement in view of the importance of this matter. "I sincerely welcome the United Kingdom's decision taken on 8 July to reduce the number of nuclear warheads to be carried on Trident submarines. This courageous action will improve the international nuclear disarmament climate. Japan's consistent and fundamental stance underlines the importance of taking practical and concrete nuclear disarmament measures one by one, with a view to creating a world free of nuclear weapons. Japan has earnestly desired such a large reduction of nuclear warheads and therefore regards highly, the United Kingdom's decision which will encourage international nuclear disarmament efforts. Article VI of the Nuclear Non-Proliferation Treaty (NPT) stipulates that each of the Parties to the Treaty undertakes to pursue negotiations in good faith on effective measures relating to nuclear disarmament. The Group of Eight (G8) Foreign Ministerial Declaration issued in June 1998 also expresses this determination to carry out nuclear disarmament. Disarmament efforts by the nuclear weapons States are extremely important in safeguarding the non-proliferation regime. We hope that this decision of the United Kingdom will lead to tangible efforts by other nuclear weapons States towards nuclear disarmament."

2. Korean Peninsula Energy Development Organization (KEDO) negotiations

   Q: Regarding KEDO, there seems to be a standstill concerning the share of members. At the same time, North Korea seems increasingly irritated by the slow pace. Is there any possibility that Japan may increase its current share, which I believe stands at US$1 billion and/or its supply of heavy fuel oil?

   A: As you are well aware, a meeting of Ambassadors of the Korean Peninsula Energy Development Organization (KEDO) Council member countries was held on 29 and 30 June. Unfortunately, no final agreement was reached. With regard to the total amount, they seem to be near agreement. We are told that there is an emerging consensus with regard to the total amount of the project, that is, US$4.6 billion. However, there has been no agreement regarding the cost-sharing aspect of the project. As you know, the Government of the Republic of Korea has stated that it will be bearing 70% of the total cost of the project. Japan has stated that it will be making a contribution in yen corresponding to US$1 billion. The United States of America has stated that the best it could do was to provide heavy fuel oil. The European Union (EU) maintained that it would be maintaining its existing position, that it would be contributing 75 million European Currency Units (ECU) over the next five years. We believe that the Council members are moving towards agreement; we see that trend. In order not to lose this momentum, a meeting of Ambassadors of the KEDO Council countries is scheduled to be held on 13 July and we will seek to reach an agreement at this meeting.

   Q: Did you say that you expect the KEDO Council to reach an agreement on 13 July?

   A: I said that we are hopeful that an agreement will be achieved at the meeting scheduled to be held on the -- I think I told you it was 13 July --

   Q: Yes.

   A: Yes. What I said was, we will be seeking to achieve agreement at this meeting. This is what we will be working for.

   Q: That has been the case at every Council meeting. Would it be correct to say that Japan, with a reasonable degree of confidence, believes that an agreement can be reached on 13 July?

   A: You are asking me to make predictions --

   Q: Right.

   A: -- and I think we have known each other long enough for you to know that I am extremely reluctant to make predictions. We believe that there is a trend there towards a final agreement, and we will be working very hard in the days to come to make that happen. In order to achieve an agreement, we have to achieve a meeting of minds among four parties, and I cannot speak for the three other parties. But we believe that there is an emerging trend towards an agreement.

   Q: Regarding the increasingly loud complaints from the North Korean side, how does the Government of Japan interpret that?

   A: I do not think it would be appropriate for me to give you explanations or interpretations of what has been reported in the press.

   Q: Let me ask it this way. Do you see some kind of sense of urgency generating among the KEDO Council members because of the implications posed by North Korea?

   A: I think the KEDO Council members all share the view that projects of KEDO are of extreme importance. We believe that KEDO has functioned as a realistic, practical and effective framework for precluding the development of nuclear weapons by North Korea. And we believe that it is extremely important to move forward the KEDO projects so as not to give North Korea an excuse for resuming its nuclear development program. So we believe that it is very important that we make progress.

3. Financial support from Japan to the Russian Federation

   Q: Japan has announced that it will help Russia with loans. Why is Japan helping Russia in this manner when Japan has economic problems? Why is Japan doing this at this moment?

   A: Yes, of course you are right in pointing out that Japan is going through a difficult phase in terms of its economy. However, at the same time, we have a relationship with the Russian Federation which has been developing very rapidly in the past year or two. As you know, Prime Minister Sergei Kiriyenko of the Russian Federation will be coming to Japan on 13 July for an official visit. During this visit, since this is a dialogue at the level of our top leaders, we will be covering the overall bilateral relationship; the various aspects of the bilateral relationship. At the same time, we do expect that in this meeting, the two sides will be focusing on the economic aspect of the relationship. We will be discussing Japan's support for Russia's reform efforts and we will be discussing the strengthening of economic relations in general. With respect to the loans that you have just mentioned -- as you may recall earlier this year, I believe it was February, Foreign Minister Obuchi visited Moscow, and at that time, he expressed Japan's intention to extend US$1.5 billion in untied loans to Russia, in the form of a co-financing arrangement with the World Bank. We are now discussing with the Russian side the details of the first disbursement of this loan. We think it is very important that we move forward the work on this loan so that we will be able to provide the funds to the Russian side as soon as possible. To answer your question, I think you are well aware of the Krasnoyarsk Meeting that took place between the top leaders of the two countries in November last year. And I think you are well aware of the more recent meeting held in Kawana between Prime Minister Ryutaro Hashimoto and President Boris Yeltsin of the Russian Federation. There is agreement between the two sides to move forward the relationship in all its aspects, that is to say, we are in the process of negotiating a peace treaty in order to fully normalize the relations between the two countries. On the economic side, I think you have heard of the Hashimoto-Yeltsin Plan which was announced in Krasnoyarsk last year. The Export-Import Bank of Japan loans are a part of this process of enhancing the cooperation between the two countries.

4. Visit by Prime Minister Sergei Kiriyenko of the Russian Federation to Japan

   Q: Regarding the visit of Prime Minister Kiriyenko, can you tell us what kind of documents will be signed or if a joint statement will be released?

   A: That again, is a question which I cannot answer fully at this moment. We are still in the process of making preparations for the visit, in consultation with the Russian side. So I think it is a little premature to talk about possible outcomes of the visit, especially in terms of specific documents. As you are well aware, the visit by Prime Minister Kiriyenko will be a part of the top-level dialogue being conducted by the two countries. Also, it will be the first-ever visit by a Prime Minister of Russia to Japan; that includes official and non-official visits. It will be the first-ever visit by a Russian Prime Minister, period. During his stay in Japan, he is expected to have talks with Japanese leaders on the overall bilateral relationship. But, as I said earlier, we expect that in the talks we will be focusing on the economic relations between the two countries. For example, we expect that the two sides will be reviewing the progress in the Hashimoto-Yeltsin Plan. So, I can tell you we attach great importance to this visit, and we are working extremely hard in preparation for this visit, to make it a success. And next week when Prime Minister Kiriyenko comes and the talks are held between Prime Minister Kiriyenko and Prime Minister Hashimoto and Foreign Minister Obuchi and other Japanese leaders -- after that happens, you will have the answer to your question.

5. Visit by President William Jefferson Clinton of the United States of America to the People's Republic of China

   Q: I would appreciate your comments regarding President Clinton's visit to China.

   A: We think that the visit was a successful one. It was the first visit by a President of the United States to China in nine years. In the Summit talks, that is, the meeting between President William Jefferson Clinton of the United States of America and President Jiang Zemin of the People's Republic of China, a broad range of subjects were discussed, such as the non-proliferation of weapons of mass destruction, Chinese accession to the World Trade Organization (WTO), stability of the currencies and other economic issues. They also discussed global issues such as international crime, drugs and terrorism. They also discussed Taiwan and human rights issues. And we are told that positive and productive discussions were held in these areas, and we welcome this outcome. We believe that good and stable ties among Japan, the United States and China are of great importance to the entire Asia-Pacific region. It is our hope from this perspective, that the relations between the United States and China further develop on the basis of the recent visit to China by President Clinton, and that this would contribute to the stability and prosperity of the entire Asia-Pacific region. There are some people who look at this visit in terms of a zero-sum game; that relations between the United States and China are being improved at the expense of Japan-United States relations. We believe that this is a completely erroneous way of looking at things. We think that this is a positive-sum game; that close relations, improving relations between the United States and China, are good for Japan and other countries in this part of the world. As you know, Secretary of State Madeleine Albright of the United States of America visited Japan immediately after President Clinton visited China, to fill us in on the talks between the leaders -- between United States and Chinese leaders. At that time, she described this as a win-win-win situation, a situation that benefits the United States, Japan and China; all three countries.