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(Provisional Translation) Press Conference by Prime Minister Junichiro Koizumi and Chancellor Gerhard Schroeder of the Federal Republic of Germany December 9, 2004

[Opening Statement by Prime Minister Junichiro Koizumi] I am happy to welcome Chancellor Gerhard Schroeder again to Japan, and to have been able to frankly exchange views with him. Recollecting our conversations while dining together on the Japanese government aircraft, when we returned together from the Kananaskis G8 Summit in Canada to Japan on the occasion of the World Cup, I am pleased that we were able to hold such a productive bilateral meeting today. In Today's talks we discussed the cooperative relations between Japan and Germany. We agreed to further promote this alredy friendly and cooperative relationship. We also confirmed that there are many areas in which Japan and Germany can cooperate in the international community. The meeting was a productive one in such sense. On economic issues, we agreed to mutually promote investment and to develop exchange among small and medium-sized enterprises in various sectors including advanced technology related sectors. We also agreed to promote exchanges in the areas of science and technology as well as academic exchange, and to make more effective use of the Japanese-German Centre Berlin, which functions as a forum for exchange. Next year will be the Year of "Germany in Japan 2005/2006". I am expecting that many people will have the opportunity to experience the richness of German culture, arts and heritage, as well as images and features of modern Germany, as these will be introduced across Japan. With regard to the United Nations (UN), the leaders of four countries of Germany, Brazil, India and Japan met in New York in September 2004, to discuss their cooperatoin in advancing UN reform. Today, we agreed that Japan and Germany will further strengthen their cooperation with regard to the UN reforms. The reconstruction of Iraq and Afghanistan is an agenda of the utmost importance to the international community that should be tackled by the international community as a whole. We confirmed that there are areas in which Japan and Germany can cooperate in Iraq. Germany in particular has advanced capabilities in the area of police officers training. In Afghanistan, Germany is also actively making great efforts towards the reconstruction of the country. We reaffirmed in our meeting that for the reconstruction of Iraq and Afghanistan, Japan and Germany are willing to work together. As for Iraq, we confirmed mutual cooperation, as Germany is now going to provide training for Iraqi police officers, in enhancing Iraqi policing capacity in the Samawah city of the Governorate of Al-Muthanna, where the Self-Defense Forces are implementing their activities. We also confirmed our cooperation in the preservation of cultural heritage in Iraq. In the future, exchanges will be enhanced and friendship will be promoted in various areas between Japan and Germany. Our mutual cooperation is not confined to the bilateral relations. The cooperation that we aim to create is something that will be highly evaluated by the international community. I am pleased to have been able to have such a good meeting. I heartily welcome Chancellor Schroeder's re-visit to Japan. I am looking forward to a frank exchange of views with Chancellor Schroeder after this press conference, as there are still many issues for us to discuss, over a Japanese cuisine, with sake and wine. [Opening Statement by Chancellor Schroeder] I would first like to thank my Japanese hosts for the warm hospitality. I am also very pleased that we have been able to hold a frank exchange of views. I believe that the German- Japanese relationship has been maintained as an amicable bilateral relationship of first-class. Accordingly, in our meeting today, we agreed to further deepen such good relations including the ones in the areas of economic exchanges and youth exchanges. Over 350 events are planned to be held during the Year of "Germany 2005/2006" in Japan. I believe that through these events the people of Japan will be impressed with how modern Germany is and open it is to the world. With regard to the international politics, we agreed that we will together promote the UN reforms and will mutually support each other's candidacy for the permanent membership in the Security Council. Furthermore, Japan has highly valued the efforts made for Iran by France, the United Kingdom and Germany, and has offered its assistance. I am seeking a long-term solution on this issue. In Afghanistan, Germany has also been sending a very large number of personnel. I am seeking to cooperate with Japan in Afghanistan within the framework of the regional reconstruction teams in the regions other than Kabul, for example, in Kunduz. Germany has achieved a number of accomplishments in Iraq. Debt cancellation is an example of a visible contribution, and we are also providing training for Iraqi police officers and soldiers in the United Arab Emirates. We will certainly continue such efforts. Germany would also like to provide training for police officers from the regions where Japan is currently implementing reconstruction assistance as well. Germany has not sent any military personnel to Iraq, and that policy will remain unchanged. I would like to express my respect for the Government of Japan's policy. We share very good bilateral relations. I would like to deepen such cooperative relations within the international community and also at committees and councils of international organizations. In my address at a symposium today I noted that Germany will be raising the issue of ensuring transparency of the oil market as the agenda for the next G8 Summit to be held in the United Kingdom. Prime Minister Koizumi has given me his support, proposing that this issue be jointly raised by Japan and Germany. I believe that if we jointly propose the issue to be addressed at the G8 Summit, we could further contribute to transparency of the oil market. I therefore believe that we can make great contribution to international stability. This was the main contents of the summit meeting today. [Q & A] Question 1: This is a question to Prime Minister Koizumi. You have just told us that in your meeting you touched on the subject of Iraq's reconstruction. There have been differences in the response taken by Germany and Japan for the postwar reconstruction. With regard to the upcoming reconstruction of Iraq, you have mentioned training for police officers, but could you be a little more specific about what kind of cooperation will be possible and also if you could tell us the specifics of any differences in opinion you may have had during the course of your meeting today? Prime Minister Koizumi: On the subject of reconstruction assistance activities in Iraq, there are no differences in opinion between Chancellor Schroeder and I, nor between Japan and Germany. As each country will provide assistance in a most appropriate way, together with and Japan's own assistance, I hear that Germany is providing training for Iraqi military personnel and police officers and their training skills are better than those of Japan. In addition to the cooperation in the provision of training for Iraqi military personnel and police officers, Japan can cooperate in such areas as the provision of equipment required for police activities in Iraq. I think we will be able to identify areas for mutual cooperation through activities that we are going to perform. We have agreed on our cooperation and there are no differences in opinion. The SDF personnel are providing humanitarian and reconstruction assistance in Samawah to support the will of the Iraqi people to rebuild their own country with their own hands. The Government of Japan welcomes Germany's cooperation to ensure safety and stability for the people in Samawah. It was cooperation in such aspects that we agreed upon in our meeting today. There are no differences in opinion between Japan and Germany. Question 2: Prime Minister Koizumi, today Chancellor Schroeder has again noted that the European Central Bank should learn from the great policy of the central bank of Japan. Would you support the coordinated intervention by central banks? If this was the case, would you consider the Chinese central bank also taking part in the coordinated intervention? Please give us a comment on how you see the devaluation of the Chinese currency. Lastly, do you think China should join the Group of Eight (G8)? Prime Minister Koizumi: As for the issue of currency and exchange rate, basically speaking, it should be determined in the market. I do not welcome the rapid depreciation of the dollar. I do not see this to be favorable. President George W. Bush has also stated that the strong dollar is desirable. I also think it is desirable that the international community cooperate with each other for the stability of exchange rates, but I basically question the act of intervention. We need to have various discussions and exchange of frank views as to how the international community can cooperate for stability of the exchange rates. With regard to your question about China joining the G8, I think it is related to the question as to how China will develop and what kind of position it will show within the democratic system. The G8 shares common values of democracy, market economy and respect of basic human rights. We should carefully look into these aspects in considering China's participation in the G8. In particular, we no longer can talk about the world economy without China taking into consideration its economy's drastic development. As China's presence continues to increase, the role China plays in the international community is going to be of great importance. It is my thought that the international community should cooperate with China and this is one of the future agendas. Chancellor Schroeder: I completely agree with Prime Minister Koizumi's comment on exchange rates. I have clearly stated that I do recognize the independence of the European Central Bank. I am sure everyone understands this, so there is no additional comment I want to make on this matter. On the second question of China joining the G8, Prime Minister Koizumi stated that this is not a current issue. The leader of China has not mentioned this issue either. I just want to clarify that at this point, the issue of China joining the G8 has not become a topic of discussion yet. When such a possibility arises, then discussion will be necessary. I want to stress that I agree with Prime Minister Koizumi's point on the role of the Chinese economy. We cannot deny the possibility of China joining the G8 in the future, but at this point this is not a topic of discussion for us. Question 3: I would like to ask Chancellor Schroeder. How should Japan and Germany cooperate on the UN reforms, in particular in obtaining permanent membership of the Security Council? UN Secretary-General Kofi Annan will be issuing a report on the UN Reform next March. Is there any possibility of the G4\Japan, Germany, India and Brazil\issuing some kind of a resolution then? Chancellor Schroeder: The four countries already have a cooperative relationship. As Prime Minister Koizumi has stated, we have formed a group called G4 last September. The way in which this cooperative relationship evolves is unseen without further discussion. I believe now is not the best time to publicly speak of a resolution. Each country will first advance its efforts step by step, then it will move toward bilateral work among the G4 countries. This approach will be expanded also in the African countries. Question 4: This morning Chancellor Schroeder stated that the future permanent members should also have a veto. Do you, Prime Minister Koizumi, share his idea? Or in the case of Japan, do you think there is some space for negotiation with China regarding veto? Prime Minister Koizumi: As a part of the UN reform, Japan maintains a stance of expanding the number of both permanent and non-permanent members. Upon this expansion, it is better that there will be no difference between the new permanent members and the existing five permanent members (P5). However, the reform is yet to take place and is one amidst a very difficult situation. At this point, I would just say that if Japan is to become a permanent member, then it wishes to hold equal rights as the P5. However, as the P5 do hold veto powers, I am aware that it is a very difficult issue. While faced with such circumstances, China is one of the P5. As such, Japan certainly must cooperate with the P5 countries as well for the UN reforms.