Greeting   leadership   Relationalship   For the future   Message to Japanese

MR. CHIKUSHI: Thank you very much. We'll go back to you, our viewers in Osaka. Let's change the topic now. Now our bilateral relationship is the most important of all. Bilateral relationships -- let's talk about U.S.-Japan relationship. We collected about 4,000 questions from all over Japan and the most popular questions were regarding Okinawa, American base issue of Okinawa. There are two independent countries, allies, but one country has the military presence in another country for a long time in such a large scale. Is it good for our relationship -- isn't it going to be a thorn of one side, so to speak? How do you feel about that, Mr. President? THE PRESIDENT: Well, first of all, I think there have been, obviously, some difficulties in the relationship in our military presence in Okinawa. Some of them I think are inevitable and I'm very respectful of the challenges that our presence has caused the government and the people on Okinawa. On the other hand, both the government of Japan and the government of the United States agree that our security partnership is a good one and that we cannot say with confidence that there are no circumstances under which American forces would ever be called upon to defend Japan or our common allies. And if we were to move our forces back to Guam or to Hawaii, it would take them much, much longer to come anywhere in the northeast Asia area if there were difficulties. So the question is, if we do need to be here for some period of years, how can we do it in the way that is least burdensome to the people of Okinawa. That has been my concern. I have worked now with Prime Minister Obuchi's government and with predecessor governments to try to be responsive to that. And I hope we can do that. I hope we can continue to ease the burden on the people of Okinawa, but stay as long as both Japan and the United States agree that is wise for us to stay. Q Related to the previous question, the new guidelines have been developed, and Japan, of course, is not supposed to go into war. But once the United States gets into the war situation, I'm afraid that Japan might be sort of pulled into that also, and I've been concerned. Can you comment on that? THE PRESIDENT: Yes. Of course, our strategy is to maintain a presence in the world so that there will be no war, so that there is a strong disincentive for anyone to drag anyone back into a war. There have been so many wars in Asia in this century, but in the last two to three decades, there has been an increased emphasis in the Asian countries on working on the economy, working on the society, working on the education of children, working on trade and other relations with people instead of military relations. And my hope is that America's military strength will be used to deter any further military action so that we will have more peace, and in the decades ahead, war will become more and more unthinkable for everyone. That is what the whole defensive military strategy of our country is designed to do. Q I will ask about trade. Now, we are asked by the U.S. government to further open our market. Do you have any Japanese-made product which you daily use, Mr. President? THE PRESIDENT: Yes, we have some Japanese televisions. We also have at least one European television, I think, in the White House complex. And I have, over time, owned a number of them. When I was a governor of my home state, we had a Sanyo plant in my home state that put together televisions that were mostly manufactured in Japan and the component parts sent there. So I'm quite well familiar with that, and I think it's very important. Actually, we've worked hard on trying to keep our markets during this period of economic difficulty -- not only for Japan, but for all of Asia. And you may know that our trade deficit has gone way up with Japan, with China, with others. Because of the Asian economic crisis we're buying more exports, but no country can afford to keep buying imports from us if the economy is down. And on the whole, the American have supported this, is our contribution to trying to stabilize Asia and bring it back. I have to say in all candor there are some problems -- Japanese imports into America of hot-rolled steel, for example, are up 500 percent in one year and no one quite believes that that's just because of the economic problems. But by and large, there's a commitment in America to keeping open markets and purchasing Japanese products. Let me also say I believe that in addition to the financial reforms, which I think are very important to carry out aggressively, and the economic stimulus, domestically, I think japan could get a lot of economic benefit in terms of new jobs, from greater openness. I'll just give you two examples. In our country there was great controversy about deregulating and opening investment to international investors in airlines and in telecommunications. We did it; it was quite controversial. But we have created as a result far more jobs in both sectors because of the greater competition. Just since 1993, when we've been aggressive in telecommunications, and a lot of international firms have been a part of this, we have seen hundreds of thousands of jobs created in America because of the increased competition. So I think it would be good for the Japanese economy. Let me say I never consciously asked Japan or any other country to do something that is good only for the United States. My belief is that our country is strengthened if Japan is very strong, because if Japan is very strong that brings back Asia. If Asia is strong, that's good for the American economy. It also means it's good for stability, which means more prosperity and less likelihood of the military conflicts that I was asked about by the lady there. Q This is relating to our economic relationship. In Japan the certificate or consumption coupons will be issued to children and old people. Now, including this -- and there are other measures to boost our economy -- what do you think of what Japan is doing? THE PRESIDENT: Well, I know of no history with these coupons, it's a new idea. And so, obviously, I can't have an informed opinion. But I do believe that anything that can be done to increase consumption is a good thing because I know the Japanese people are great savers -- and that is also a good thing. And I know you worry about the population getting older and having to save more for retirement. But you need a balance between saving for your own retirement and growing the economy today. Because as the population gets older one of the things that will lift up the elderly population is a very strong economy. And so I think that anything that can be done to boost confidence of consumers and to boost consumption is a good thing. Q I'm a farmer, producing flowers and rice. I very much would like you, Mr. President, to understand the difference in farming in Japan and the United States. In Japan, farming is done by families -- but to produce agriculture products. But in terms of culture and social values and human values are also important. The agriculture in the United States, very much efficient, enterprise-oriented -- it is difficult to compare these two in the same vein. In that background -- the agriculture in Japan based upon family farming -- and the trade of agriculture products, there is something that we really cannot speak in terms of economic values -- much more broader thing, man-oriented values. But the United States is strongly demanding liberalization of the agriculture products. We import agriculture products a lot and the Japanese family farming is losing, losing out. That is, in my view, unfair. So with this background -- we have this -- or agriculture negotiation coming on next year. I think that kind of thing should be prevented. And we have the agriculture that fits to each country. And I'd like to have your comments on this, Mr. President. THE PRESIDENT: Well, first of all, let me say this is a subject about which I think I know something. Before I became President, I was the governor of my home state, which produces 40 percent of all the rice grown in the United States. And in our state, most of the farms are still family farms. But we see all over the world today family farmers having more trouble. For example, to show you the other side of this, in the northern part of the United States, in North Dakota, there was a huge drop in the number of family farmers this year because the Asian countries -- not Japan, other Asian countries which had been buying their wheat could no longer afford to buy it. And a lot of them were threatened with going out of business. In fairness, one of the reasons I believe we need this WTO process is so we can have a regular way of deciding how to open the markets that should be opened in agriculture and then give countries enough notice so they can figure how they're going to help the farmers if they have a policy of wanting family farmers to survive. I can tell you, in my country we have tried to push for more open markets and a policy to keep family farmers in business, by -- and I can only say what the situation is in America. In America, the family farmers are as productive as the big enterprise farms, but the family farmers don't have a lot of money in the bank. And we all know that because of bad weather or bad prices or whatever, some years are good in farming, some years are bad in farming. The fundamental problem in the U.S. is that the family farmers need a system to help them through the bad years. The big enterprises have so much money, they take the bad years and wait for the good years. So we have tried to design a system that would address the needs of both, and we seem to be having some success there. So I think there is a proper compromise here where you can open markets more gradually, open them to farming, particularly if there are different products. There are some products that Japan buys that can't be grown in Japan. And if you can open these markets, but do it in a way that preserves to the maximum extent possible the family farms, that I think is the best way to do it. And that is what we are trying to achieve in the U.S. I don't know if we'll succeed, but I think we're doing a pretty good job now. MR. CHIKUSHI: Osaka is very interested in economic issues, so let's switch over to Osaka. Questions? Q I'm in housing equipment and material. Osaka has a lot of small- to medium-size businesses, and I boast ourselves for having supported the Japanese economy. But we are suffering right now. It's hard to get loans these days. And the first blow comes to us first. But in the United States, how are you helping these small- to medium-size companies? THE PRESIDENT: We have I think three things that I would like to mention. First of all, for small businesses that are just getting started, we have a Small Business Administration in the federal government which can provide guarantees of the first loans. Now, we have a pretty healthy banking system, quite healthy, that is pretty aggressive in making loans to businesses. In addition to that, we have something that many countries don't have. We have a very active system of venture capital, high-risk capital, higher-risk capital, people who will invest money in new areas or in small- or medium-size businesses that are just trying to expand. And having looked at the Japanese situation, I think it would be very helpful if, in addition to this bank reform, where the banks can get public money to protect depositors, and then they have to declare the bad loans and work through them, I think that will help because then the banks can start loaning money again, with the depositors protected. So it's very important to implement that. But I would like to see some effort made at providing more of this venture capital, this risk capital, in Japan. And it may be that there is something we can do to encourage Japanese business people to set up these kind of ventures, because they have created millions of jobs in America, the venture capitalists have. And even though they lose money on ventures, on balance they make money over a period of years. Q I am also a merchant, selling kitchen material. Looking at the recent American diplomacy, you tend to go over the head of Japanese. You're interested in strengthening diplomatic relations with China. What we are afraid of is that in 2008 we would like to invite the Olympic Games to Osaka, and a very strong rival is Beijing of China, for the Olympics in 2008. So I would like to have your personal, private opinion about this. If Beijing and Osaka compete to get the Olympics, I am sure that you will support Osaka. I'd like to make sure of that. Or would you rather support Beijing? I certainly appreciate your support. THE PRESIDENT: Thank goodness I will no longer be President. I don't have to make that decision. Let me make two points. First of all, I did not intentionally go over the heads of the Japanese people in establishing better relations with China. I think it is good for Japan if America has better relations with China. I think it is good for America if Japan has better relations with China. The Chinese President is coming here I think on a state visit in just the next couple of days. And it has now been quite a long time since the last world war, and I think whatever remaining misunderstandings there are should be resolved, and that your two great countries should have better relations. And I'm going to do my best to see a partnership involving all of us going into the future. I'm not going to take a position on the Olympics. But let me say, before I became President, I spent a lot of time in Osaka because we had two companies in my state who were headquartered in Osaka. I even remember the last restaurant I ate at in Osaka, Steakhouse Ron. So if it's still there, maybe I got them some business tonight. (Laughter.)
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