Top �� Speeches and Statements by Prime Minister

(Provisional Translation)

Press Conference by Prime Minister Junichiro Koizumi at Evian Summit

[Opening Statement] Prime Minister Junichiro Koizumi: When you say "Evian," for the Japanese people it is a name best known for mineral water. Having come to Evian myself, I found out that the wonderful thing here is not just the water. It is on the shores of beautiful Lake Leman, it has beautiful scenery, it has beautiful cuisine and I have also enjoyed the heartwarming hospitality of President Jacques Chirac and the citizens of Evian and I have also enjoyed the very elaborate arrangements for security by the Swiss authorities. I would like to first express my heartfelt gratitude. During the meetings President Chirac exercised most outstanding chairmanship and I was most impressed by that. Ahead of the Summit meeting many people pointed out that there could be confrontation over the Iraq problem and many therefore doubted whether we would find an atmosphere for cooperation at the Summit. Once the meeting started however, we first had the dialogue between the G8 and the developing countries and emerging economies and also we had the G8 Leaders meeting and we found that temporary confrontation is not an everlasting confrontation. On the North Korean problem, the environmental problem, on international economy and on so on, we were able to share the recognition that international cooperation is very important in addressing these problems. Once again, I should like to express my respect to the most outstanding chairmanship shown by President Chirac. For myself, this was the third G8 Summit that I attended. Through the dialogue and the conversations that I was able to have with the leaders of the G8 countries I was able to exchange views with them with a sense of closeness to all of them. I was able to express myself very candidly and I believe we had very useful and fruitful meetings in a relaxed atmosphere. We discussed the world economy, the Iraq problem, the North Korea problem, counter-terrorism, infectious diseases including SARS and the environment, the importance of the environment, these were the main matters that were discussed. On the environment, I stressed the importance of an early entry into force of the Kyoto Protocol. The Government of Japan has been striving to ensure both the economic growth and environmental protection and we have been working very hard at that. In the past there was the view that we could sacrifice the environment to some extent in the interest of economic growth. That no longer stands today. We must make sure that both go hand-in-hand and the key to achieving both is in science and technology. These are the points that I underscored. Japan's economic growth and revitalization and especially structural reforms were matters of great interest for other leaders. I believe that the matter of economic growth and the development of the economy is not only for the Japanese people, but it is also a matter of interest for the entire world. With that in mind, I said that we shall vigorously work at structural reforms and we shall continue to promote structural reforms so that Japan's economic revival will be able to once again contribute to the world's economic growth and development. With regard to North Korea, many countries are more concerned about the nuclear weapons development program of North Korea. As far as Japan is concerned, whilst the nuclear issue certainly is a grave issue, the abduction issue is of paramount importance as well. We believe that the nuclear and other security issues as well as the abduction issues and others need to be dealt with comprehensively and unlike in the case of Iraq, we shall continue to pursue a diplomatic and peaceful resolution to the North Korean problem. I believe this understanding was shared among all of the G8 leaders. I believe that this G8 started as a gathering of the most advanced countries in the world. Today we also see the participation of African countries and other emerging and developing economies. These were invited to an expanded dialogue and I believe there is shared recognition that the advanced countries and the developing countries must together cooperate with each other. Once again, I should like to express my heartfelt gratitude to President Chirac and to the Government of France and the people of France, as well as the authorities of Switzerland for their very kind hospitality and considerations.

[Q&A] Q: In this Summit, Prime Minister you mentioned that the way is open for the reconstruction of international cooperation set up by Japan. What are the tangible contributions by Japan for the restoration of Iraq that may be needed? Prime Minister, you mentioned the dispatch of Self-Defense Forces to Iraq. You said that you would follow the international situation and make the decision in due course. Now the United Nations Security Council Resolution has been adopted and the preparation meeting under the auspices of the UN was decided upon. Is there any possibility for the participation of the Self-Defense Forces or for a new law? Prime Minister Junichiro Koizumi: With regard to Iraq, Japan has not participated in combat operations, but Japan will actively cooperate with the reconstruction and the rehabilitation of Iraq. Japan, on its own initiative, I believe will be able to cooperate for Iraq's reconstruction. There is also cooperation that Japan can provide through the Office of Reconstruction and Humanitarian Assistance (ORHA) or other international organizations. If a UN resolution is adopted, than on the basis of that resolution Japan shall also be able to provide cooperation. This is what we have said, and on that basis Japan shall provide actively cooperation for Iraq's reconstruction. That policy remains unchanged. With regard to the dispatch of Self-Defense Forces or cooperation by the Self-Defense Forces, Japan already within the confines of existing Japanese laws, has been providing support in terms of humanitarian supplies and cooperation. Upon return to Japan I shall be meeting with the leaders of the Liberal Democratic Party and other ruling parties to consider what we can do within the confines of the existing laws, such as the peacekeeping operations law and also, we will try to identify what the Iraqi people will really need, what sort of cooperation they would expect from Japan. Looking carefully at the situation on the ground, if we find that it is best to send the Self-Defense Forces then we shall dispatch them. If not, then we will not send them. So, we shall observe the overall situation, engaged in close consultations with the representatives of the ruling parties and decide on the details after returning to Japan. Q: President Bush talked about the maintenance of a strong dollar. What sort of impact do you think the yen will receive as a result of this? Would you expect lower exchange rates for the yen? Prime Minister Junichiro Koizumi: This is a matter that President Bush was commenting on in a meeting I had with President Bush on his ranch in Texas before the Summit meeting. At that time he stated that he goes for a strong dollar. I said that we are working on Japan's economic reform. At the time of American and British economic reforms, those countries started those reforms while their currencies were declining. Now, the situation is different for Japan today. If you look at the currency rates thirty years ago and today, the yen has tripled vis-a-vis the dollar and compared with the British currency, the Japanese currency has quintupled in value vis-a-vis the British Sterling. According to certain credit rating agencies, they rate Japan's government bonds below Botswana's government bond. So, that rating is low. And yet, why is the yen so strong? The discussion really started from that question. President Bush said that he hopes the US dollar would be strong. I immediately responded by saying that I welcome a strong dollar. If anything, as regards the Japanese yen, I believe that it is overrated, but to what extent it should depreciate is not for me to comment on, it is up to the market to judge that point. Whether the yen appreciates or depreciates, whether the dollar appreciates or depreciates, it is not just a matter of bilateral relations between Japan and the United States. It is a question that really has a major impact on the world, so I shall not comment on how far the yen should decline. I do not think it is right for me, in fact, to comment on that point. Q: I would like to ask you a question concerning North Korea. There is an agreement about the need for a comprehensive resolution, including the abduction issue and the nuclear development issue. Based on that, going forward in what way would you be carrying out negotiations? What is the outlook for having Japan and the Republic of Korea join the current tripartite negotiations? Furthermore, during the G8, the role to be played by China was indicated in this issue. During the US-Japan discussion, the Prime Minister mentioned "dialogue" and "pressure." But it seems that Russia and China are not quite in agreement with imposing pressure on North Korea. What would you like China to do in putting pressure on North Korea? Prime Minister Junichiro Koizumi: As regards the response vis-a-vis North Korea, in my one-on-one meeting with President Bush on his ranch, he highly rated the role played by China. Thanks to the Chinese efforts the trilateral talks of the US, North Korea and China took place. If this trilateral format is to be repeated, and if that is to take place in the near future, it is essential that Japan and the Republic of Korea participate in those talks and I shared that recognition with President Bush. You referred to "pressures" and "dialogue." In our meeting this time, we actively discussed North Korea, especially in the free discussions that we had last evening. This question of North Korea became one of the major focal points of our discussion. President Putin of Russia and the leaders of other countries showed very strong interest and concern in North Korea, especially with the abduction question. Some of the leaders expressed that they really found it very difficult to understand the abductions. I also find it very difficult to understand the abductions. Why did they have to kidnap Japanese nationals? I certainly understand the pains and the grief of the parents who had their children abducted. It is utterly inhuman. But these acts did take place. So, there is strong interest in the Japanese people in the abduction issue and we have to take up the abduction issue and the nuclear issue at the same level in parallel and we need to have these problems resolved comprehensively. I gained very strong support for this matter from the Japanese stance from the leaders of the other G8 countries. Especially from President Putin. As a country that has friendly ties with North Korea, he shared with us very valuable remarks and advice. His perception of Chairman Kim Jong Il. He was very candid in sharing his thoughts with us. I myself met with Chairman Kim Jong Il on 17 September 2002 and had meetings with him on that day. In the days ahead I believe that it is incumbent upon all countries to be concerned with North Korea and I believe that it will be good to open up North Korea to the international community and make sure they will not lash out. Whether you say "apply pressure" or "work on North Korea," you can choose the expression you use, but this is not just a matter for Japan alone. We cannot deal with North Korea with just Japan, the United States and the Republic of Korea in coordination. Of course close cooperation and coordination amongst these three countries is essential, but on top of that it is very important to have the involvement and engagement of China and Russia as well. The United States and Japan, I believe are seen as enemies by North Korea. With regard to the Republic of Korea, of course they have had this war and the 38th parallel, but I am sure as ethnically they are the same people, they have a sense of affinity. And of course China and Russia have been friendly countries for North Korea. So the neighboring countries around North Korea have different attitudes and responses towards North Korea. We have different circumstances. There are different national sentiments. But there is also a common thread, and that is that we feel the nuclear threat and we have to completely dispel that nuclear threat. But we shall pursue through and through a peaceful and diplomatic resolution of the problems with North Korea. I think that is agreed upon. In the free discussions last evening the leaders of the G8 countries spoke based on their own experiences and the experience of Iraq and they exchanged their views and I think that was a very substantive exchange of views. I should like to take to heart these exchanges of views that we had as we proceed to the negotiations with the North Koreans. Through cooperation with all the countries concerned we shall persevere in our efforts to seek a peaceful and comprehensive resolution. Q: Does Japan wish to take the North Korean problem before the United Nations Security Council with possibly the collaboration of France? Would you go to Jacques Chirac's chateau to talk about it? Prime Minister Junichiro Koizumi: Well, the question was would we take the issue to the United Nations Security Council. The North Koreans do not want that. We have to bear that in mind. The situation is different in that respect from the Iraqi situation. The North Koreans have always sought bilateral talks with the United States and the United States has said that they will not respond to bilateral talks with North Korea. However, with the Chinese intermediation the trilateral talks took place. I believe participation by Japan and the Republic of Korea will be essential, and of course the Chinese and the Russians are also greatly concerned about this situation. Now, before such efforts take place, do we take the matter to the UN? I think it is too premature at this stage. Instead of taking the matter to the United Nations, I believe we should try our best to see to it that the North Koreans will become responsible members of the international community and that they expeditiously dismantle their nuclear programs, dispel all the concerns that the international community has vis-a-vis North Korea and also in good faith, resolve all of the concerns, the pending issues that Japan and the Republic of Korea have with North Korea. If they do that, there will be no need to take the matter to the United Nations and we shall persevere in those efforts. Whether to take the matter, the North Korean matter, to the United Nations, I think that really for the time being we should continue with our negotiations with North Korea. Thank you very much.