PRIME MINISTER
TRANSCRIPT OF THE PRIME MINISTER, THE HON P J KEATING MP
PRESS CONFERENCE, IMPERIAL HOTEL, TOKYO, JAPAN
6 SEPTEMBER 1994
E& OE PROOF COPY
PMV: I thought It might be useful to give you an impression of the meeting I
had this morning with Minister Hashimoto, I have been quite friendly
with Minister Hashimoto now-for many years when he was Finance
Minister and we have corresponded at various times over the years
since and I am delighted that he has come back Into the government
as the Minister for International Trade and Industry. This Is a country
which takes a quarter of all we export and It's our largest trading
partner, and having, well certainly, an associate a relatively a close
associate in the job here makes things somewhat easier for me.
We had a very good discussion today about the international scene
In general and about APEC in particular. And, as you know, Japan
was one of the founding forces of APEC and with Prime Minister
Miyazawa and MITI back a couple of years ago. They played a very
significant role getting the change in APEC from an informationsharing
secretariat to a leaders body, a heads of government body,
and to be able to give it a greater role in trade facilitation and
liberalisation. So today we had a talk about this and about the
importance of the Leader's Meeting in Bogor which will require and
this is a very large undertaking that is going to require a lot of
spadework over a period, and a lot of dialogue and a lot of
discussions but, I think I say today that our discussions were very
positive and, as you know Minister Hashimoto particularly from the G-
7 Meeting, you know that he is a very strong advocate of free trade
and we have shared views on the need for free trade In the region,
and we agreed on the need to make the Bogor Meeting a success. I
think they are very conscious of the fact the that there is a great
opportunity here with President Soehartoe's leadership.
This is a quite unusual circumstance where the leader of a
developing country and a large one representing developing
countries In ASEAN are, in a sense, providing the lead, to a very
substantial International undertaking In trade. In the past we have
expected these things to come from the developed countries and the
G-71 this is In a sense coming the other way it's coming from
developing countries, and I think that Japan understands and values
this. But, of course, I'm looking forward to the meeting with Prime
Minister Murayama later in the day, and it Is after that that I can
say.. give you an Impression where I think Japan Is standing on some
of the issues coming up to APEC and some other issues as well.
J: Prime Minister, do you believe that the 2020 target set out by the
Eminent Persons Group, do you believe that target is ambitious
enough? Do you think it should be improved upon?
PMV: Well,' the Eminent Persons Group Report Is an Indication of the
direction, I think, which leads to things because all the people on it
are private people who have come back to their respective
governments and, in a sense, what you have Is the sort of, well, both
a coalescence in the EPG Report and, I think and a bit of a a
compromise. The leaders will do something else again, and I think
the strength of the Seattle meeting was that the Leaders met without
officials, and they decided where they want to kick the baill
themselves. So, In a sense, the EPG process is useful in fleshing out
the Initiatives and trying different issues on different constituencies
within APEC, and trying to see how far that can be generally agreed.-
it's then really up to the Leaders to see what they do with it. So, the
EPG report took us in the right directions, but I think the Leaders will
give that more precise expression.
J: From an Australian. own point of view, would you like to see a more
ambitious target?
PM: Well, what I want to see Is something which Is generally agreed. I
mean, In terms of industrial protection, Australia can make these
targets much earlier.. ( inaudible). But, we want to see this be a
discussion not simply about tariffs, but about services and non-tariff
barriers as well. It Is not simply a matter about, you know, target by a
certain date. I mean, I think everyone understands the value of ths,
that Is all the participants, and they're thinking hard about what they
can contribute at Bogor.
J: The Malaysians have been lobbying hard over the last few days
Deputy* Prime Minister Ibrahim has been here trying to push EAEC
along. Are you concerned about this competition with the Malaysian
proposal?
PM: Look, I didn't mention the EAEC. I mean, APEC is the main event
and the one that matters. Why should I bother with the EAEC,
particularly, I mean, in terms, you know, the notion you put which is
some sort of competitive thing.
3
J: Prime Minister, last week senior Japanese Foreign Ministry officials
were Indicating that because GATT wasn't even through the DIET
here yet, In their words " the bruising hadn't healed from GATT", it
wasn't time yet for Japan to start on another free trade round. Did
you get any signs of that this morning?
PM: No, and in fact Japan played a very positive role at the Naples
meeting so, I don't think you can assume that is right. I mean, look at
what they did at the G-7, and what they did there was really argue for,
you know, further liberalisation. All countries will have their pressure
points in pushing the GATT Round through, but the GATT Round was
Important for the fact that it did advance the process of trade and
lower levels of protection and to facilitate investment in sectors which
were formerly off-limits. So, every country that signed up to Uruguay
will have this during the ratification process. But it's done and we
expect it to be ratified.
J: What was Minister Hashimoto's view about the fixing of the firm date
at Bogor?
PM: Well, we didn't go into specific dates. Only to say that one of the
clear objectives of Bogor will be to talk about free trade, you know,
within certain time frames. But these are matters I want to discuss
more fulsomely with the Prime Minister.
J: What was his general sort of response though to a more agressive
push?
PM: Japan has been right on board the APEC bus from day one. Prime
Minister Miyazawa, as I said earlier, MITI and the Galmusho ( MFA), I
mean, it was important in getting support for the Leaders Meeting in
the first place, and for the objectives which Prime Minister Hosikawa
helped push through, and the work program at the Seattle meeting.
So, you have got to see Japan as basically a positive player in this.
J: Prime Minister, what's changed? You said on Friday that Japan now
is more enthusiastic about APEC as a vehicle for trade liberalisation
what evidence do you have for that?
PM: Well, I think that Japan... I mean, a view was put to me a few years
ago that in terms of APEC and any liberalised trade, that Japan would
be the first beneficiary. And I think that is right, and I think Japan
sees that too. I mean opening up East-Asia and North-Asia to
products and multi-lateralising the interests of the United States in
Asia, multi-lateralising with China, is something which must naturally
fall to Japan's advantage.
-4
J, Mr Keating, what's the difficulty In trying to manage the Japanese
desire to MFN, and the American desire to do everything more
unilaterally.. ( inaudible)..?
PM: Well, I don't see that certainly with Bogor. I mean I think the
likelihood is there that there will be a further meeting, and I should be
pleased if the next Leaders Meeting was actually held concurrent
with a Ministerial meeting In Japan. And, I think, once there are
generally agreed principles at Bogor, I think, it Is then a cme of
bringing In the ministries for some of the, sort of, beauracratic weight
to try and solve some of the other problems. I think this is where the
leaders can provide the value, I mean to kick the thing along. There
are then plenty of agencies to sort of scrabble over the details.
J: But they're fairly important details?
PM: Oh yes, sure. But It's not so important that, I think, anyone is going to
let the thing go.
J: Do you think they are prepared to sign off without actually knowing
how they..
PM: Well, I can't say that without speaking to the Prime Minister.
J: Mr Keating, on the wider level the issue of Japan's international
role, typified by questions such as its membership of the Security
Council. Previously Australia has stated it supported Japan
becoming a permanent member. What Is Australia's position on that
now, and also extending that to the peace-keeping question?
PMV: Well, our position remains the same. I mean, we think Japan can
play.. . it's the second-largest economy in the world, it's a large
country, It's a major player In the world we think Japan can be a very
positive force In the Security Council. That's always been our view,
and remains our view.
J: When My Murayama became the Prime Minister, he announced a
freeze on their bid for Security Council membership, and there seems
to be some tensions between his Socialist Party and more
nationalistic ( inaudible) Is that a problem for Australia, evaluating
that?
PM: None of this is a problem for Australia. It's about where we see vis a
vis Japan and the Security Council issue. I mean, we see ourselves
as being essentially supportive of this. And I think that, you know, the
coalition., has, despite the predictions of the pundits, is getting some
real standing and potential longevity, and the decisions by the Prime
Minister's party over the last weekend In some of these major issues
such as the US Alliance etc, nuclear power Is clearing away a lot of
P
the Inhibitions for his party the Socialist Party to participate more
fulsomely In Japanese politics and Japanese policies. This, I think, Is
a very good sign. Now, in this clearing away of issues, probably one
of the issues which the Prime Minister will clear his mind on Is this
question about the Security Council. Now, It would fit very much in
with the constellation of Issues which his Party discussed last
weekend.
J: Mr Keating, did you discuss bilateral issues as well this morning with
Mr Hashimoto?
PM: No, no. Because I think we both understand that Mr Hashimoto
visited Australia a few times, I mean, he knows where we stand. He
knows about the clearly about the weight of our trade, our
importance to Japan as a raw material supplier and now unilaterally
as a supplier of food and high technology products. They know about
Australia's economic performance, and you know, in the time I have
with him, we want to concentrate, I think, on International issues.
J: At the South Pacific Forum you had some fairly strong things to say
about some Asian resource companies In the forestry and fishing
areas exploiting Pacific Island nations. As the Chairman of the
Forum this year, how strongly are you pas-sing those concerns you
articulated on in Brisbane onto Japanese in terms of their
companies?
PM: Well, forth-rightly. And when I get a chance to tell the Prime Minister
I think it Is part of my role as Chairman for the year, of the South
Pacific Forum, to actually transmit some of those messages. And,
you know, frankly I think that a mature Industrial state like Japan will
understand where the message has come from and why they have
come. But again, I look forward to taking that up at my meetings this
afternoon and with my meeting with the Prime Minister.
ends.