Prime Minister Keizo Obuchi addressed Self-Defense Forces personnel assembled at the annual SDF review at the Asaka Training Area, Saitama Prefecture. Touching on the ongoing procurement scandal in the Defense Agency, he said, "The occurrence of a situation causing the Defense Agency and the SDF, which are charged with safeguarding Japan's peace and security, to lose public trust is extremely regrettable," and stressed the need to strictly enforce official discipline and undertake a sweeping review of the defense-procurement system. In addition, he called North Korea's August 31 launch of a missile that overflew Japan "extremely regrettable from the viewpoint of Japanese and Northeast Asian peace and security" and declared that study of installation of a theater missile defense system was a major defense-policy issue.

Prime Minister Keizo Obuchi visited Osaka for the first time since taking office in order to hear firsthand the views of local business proprietors and working people. The initiative was part of a series of "dialogue gatherings" with citizens. Touring the Tenjinbashisuji shopping arcade in Osaka's Kita Ward, he was warmly greeted by a throng eager to shake his hand. He also delivered the keynote address at a public forum at Osaka University and responded with care to questions from students and other participants. Issues raised ranged from economic problems to the elimination of nuclear weapons and nuclear nonproliferation.

Prime Minister Keizo Obuchi spoke with Japanese astronaut Chiaki Mukai, aboard the U.S. space shuttle Discovery, from the prime minister's official residence. This was the first time Mukai's voice was transmitted directly to Japan during this space mission, her second. The transmission began at 5:55 A.M. Japan time and lasted about 20 minutes. When the prime minister asked Mukai her impressions of space on her second mission, she recited a short poem she had composed: "Gazing down on the mountains, I recall playing as a child in a sandbox." U.S. Democratic Senator John Glenn, the oldest person ever to take part in a space mission, also spoke with the prime minister, who invited him to visit Japan. Senator Glenn replied that he looked forward to doing so.

Prime Minister Keizo Obuchi attended the opening ceremony of the National Trade Skill Competition in Maebashi, Gunma Prefecture. Addressing the competitors, he expressed his pleasure at being part of an event in Gunma Prefecture, his birthplace. He encouraged the competitors to do their best, mentioning his admiration of the skilled workers he had observed when touring a factory in Kawaguchi, Saitama Prefecture.

Prime Minister Keizo Obuchi visited the Takanezawa Agricultural Technology Center and other agricultural facilities in Takanezawa, Tochigi Prefecture, and chatted with farmers and other residents. One of a series of "dialogue gatherings" in various parts of the nation, this was the first in a rural area. During an informal meeting he listened carefully to local views and took notes. One issue residents raised was their wish for a system of lower-interest loans to facilitate farm expansion. The prime minister replied that he hoped to create a system that would both enable and encourage expansion.

Prime Minister Keizo Obuchi, who had arrived in Moscow on November 11 on the first official visit by a Japanese prime minister in 25 years, met with Russian Federation President Boris Yeltsin. On November 13 the two leaders, on the basis of their talks the previous day, signed the Moscow Declaration on Building a Creative Partnership Between Japan and the Russian Federation, enunciating their determination to further strengthen cooperation in all fields, including politics, economics, security, culture, and international cooperation, and to "enter an era of 'agreement' by the strengthening of 'trust.'"

The Moscow Declaration reaffirmed the two leaders' resolve to "accelerate negotiations on a peace treaty based on the Tokyo Declaration as well as on the Agreements of Krasnoyarsk and Kawana" and to make "utmost efforts to conclude a peace treaty by the year 2000." It was also agreed to set up subcommittees on border demarcation and joint economic activities within the existing joint committee.

Prime Minister Keizo Obuchi met with Ernesto Zedillo Ponce de Leon, president of the United Mexican States, at the prime minister's official residence. Referring to the recent hurricane that had devastated Central American countries, the prime minister said Japan would continue to provide reconstruction assistance to disaster areas. President Zedillo expressed his deep appreciation of Japan's dispatch of a Self-Defense Forces relief team to Mexico's sister country Honduras, the first such relief operation conducted under the provisions of the Law Concerning the Dispatch of Japan Disaster Relief Teams.

A two-day Asia-Pacific Economic Cooperation forum summit whose chief theme was dealing with the Asian economic crisis took place in the Malaysian capital, Kuala Lumpur, on November 17 and 18. Prime Minister Keizo Obuchi represented Japan at the meeting of leaders of the 21 member countries and regions, which culminated in the adoption of the APEC Economic Leaders' Declaration, Kuala Lumpur, Malaysia, 18 November 1998: Strengthening the Foundations for Growth. The Kuala Lumpur Declaration called for enhancing the stability of the international financial system by setting up a taskforce to draft disclosure standards for hedge funds and other institutional investors, which had played a major role in disrupting the world's financial markets.

The Kuala Lumpur Declaration focused chiefly on measures to deal with international financial institutions, recommending examination of appropriate transparency and disclosure standards for the international speculative funds known as hedge funds, which have been accused of causing the Asian currency crisis; review of the practices of the international credit rating agencies; and formulation of appropriate guidelines for monitoring capital flows, including short-term flows. It was agreed that "a forum such as an expanded G22 would be appropriate for this purpose."

Prime Minister Keizo Obuchi met at the Akasaka Palace with U.S. President Bill Clinton, who had arrived on November 19. The prime minister explained the measures Japan was taking to achieve economic recovery within two years. The president praised the measures outlined and expressed his hope that the prime minister would exercise strong leadership to restore the Japanese economy. In their hour-and-a-half discussion, the two leaders also exchanged views on bilateral issues and a wide range of other subjects of mutual interest, including the situation on the Korean Peninsula, the Middle East peace process, Russia's problems, and United Nations reform.

Prime Minister Keizo Obuchi met with Keiichi Inamine, governor-elect of Okinawa Prefecture, at the prime minister's official residence. Referring to the problem of relocation of the U.S. Marine Corps's Futenma Air Station when the present site reverts to Japanese jurisdiction, the prime minister said he would like to pursue the matter with the general will of the people of Okinawa in mind, but added that in actual fact it would be difficult to move the heliport to another prefecture or country, indicating the government's intention to move toward relocation elsewhere in Okinawa while gaining residents' understanding. Governor-elect Inamine said that consolidation and reduction of the U.S. military facilities in the prefecture was the heartfelt wish of the people of Okinawa and asked that the government take their wishes fully into consideration. He also requested that the government undertake economic and other measures that would enable Okinawa to stand on its own feet. The prime minister pledged the government's full support in this area and said that the fiscal 1999 budget would incorporate measures to boost Okinawa's economy.

Prime Minister Keizo Obuchi met at the Akasaka Palace with Jiang Zemin, president of the People's Republic of China, who had arrived on a state visit on November 25. President Jiang's visit, reciprocating the 1992 visit to China of Their Majesties the Emperor and Empress, was the first official visit to Japan by a Chinese head of state. The meeting advanced the Japan-China relationship to a new stage. In addition to affirming a "partnership" between their countries for the first time in the history of bilateral relations, the two leaders agreed to build a framework for long-term cooperation, including cooperation in such new fields as contributions to the international community. In addition, the prime minister conveyed the Japanese government's "deep remorse" for "the serious distress and damage that Japan caused to the Chinese people through its aggression against China during a certain period in the past."

Late that night, on the basis of the two leaders' successful talks, the Japan-China Joint Declaration on Building a Partnership of Friendship and Trust for Peace and Development was issued. Among other things, the joint declaration included agreement on regular visits by leaders of the two countries and on enhanced dialogue between the two countries' security authorities.

Prime Minister Keizo Obuchi delivered a policy speech to a plenary session of both houses of the National Diet at the opening of the 144th session of the Diet. Referring to the procurement scandal involving the Defense Agency early in his speech, he said, "The arrest and indictment of former top officials of the Defense Agency and the suspicion of attempts to conceal evidence are events which shake public faith in government administration. I would thus like to take this opportunity to extend a sincere apology." He added that the Defense Agency would "do its utmost to restore confidence." In regard to economic recovery measures, the nation's chief priority, he stated, "My Cabinet will do its utmost, putting its own fate on the line, to . . . break though the recessionary cycle, return the Japanese economy to clear positive growth by FY 1999, and achieve a genuine economic revival by FY 2000."

Addressing foreign relations, the prime minister said that, building on his summit meeting with Russian President Boris Yeltsin earlier in the month, he would strive for resolution of the Northern Territories problem, doing everything possible to conclude a peace treaty by the year 2000. In regard to Japan-U.S. relations, he requested "the prompt passage and approval of bills related to the Guidelines for Japan-U.S. Defense Cooperation" and pledged continued efforts "in addressing the realignment, consolidation, and reduction of U.S. military facilities and areas" in Okinawa Prefecture. In dealing with North Korea, he said, "it is necessary to make efforts on appropriate information gathering, and measures need to be taken to collect, analyze, and communicate information which contributes to national security and crisis management," an oblique reference to the introduction of visual image satellites.

Prime Minister Keizo Obuchi met with Kim Jong Pil, prime minister of the Republic of Korea, before the first Japan-Republic of Korea Gathering of Ministers at a hotel in Kagoshima City, Kagoshima Prefecture. Prime Minister Kim suggested that Japan, the Republic of Korea, and other Asian countries jointly contribute to a $300 billion Asian Currency Fund (provisional name). He also extended an official invitation for Their Majesties the Emperor and Empress to visit the Republic of Korea in the year 2000, to which Prime Minister Obuchi replied that he would endeavor to create a climate that would enable Their Majesties to enjoy a warm welcome in the Republic of Korea.

Gatherings of Ministers to strengthen bilateral dialogue were agreed on in the Japan-Republic of Korea Joint Declaration signed when Republic of Korea President Kim Dae Jung visited Japan in October. At the first such meeting Japan was represented by Prime Minister Obuchi, Minister for Foreign Affairs Masahiko Koumura, and four other cabinet ministers, while the Republic of Korea was represented by Prime Minister Kim, Minister of Foreign Affairs and Trade Hong Soon Young, and three other cabinet ministers. Views were exchanged regarding bilateral relations and measures to overcome the Asian economic crisis. It was agreed to begin preliminary negotiations aimed at the conclusion of a bilateral agreement on investment cooperation and to initiate joint study by Japanese and Republic of Korea research institutions regarding an East Asia free trade zone.

On November 29 Prime Ministers Obuchi and Kim visited the town of Higashiichiki, where Satsuma ware--a style of pottery introduced by Korean potters some 400 years ago--is made, further deepening bilateral friendship.