Ask the Scholar

Document scope · 1 page
doc
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory. For page-specific OCR and visual context, open one of the page chats.

Scholar Source Context

Document identity
localId
323151802
label
Japanese Welcoming Committee 1/9/92 [OA 6095] [2]
core
doc
dtoType
document
pageCount
1
Source metadata
Source extras
naId
323151802
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
b0f965012e263da8
ocrText
Originally Processed With FOIA(s): FOIA Number: S; 1999-0582-F; 1999-0586-F S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Draft Files Subseries: Chron File, 1989-1993 OA/ID Number: 13598 Folder ID Number: 13598-003 Folder Title: Japanese Welcoming Committee 1/9/92 [OA 6095] [2] Stack: Row: Section: Shelf: Position: G 26 17 5 6 Document No. 295/3155 WHITE HOUSE STAFFING MEMORANDUM DATE: 12/26/91 ACTION/CONCURRENCE/COMMENT DUE BY: 3:00PM, FRIDAY, DEC. 27 PRESIDENTIAL ADDRESS: JAPANESE WELCOMING COMMITTEE HOTEL NEW OTANI SUBJECT: TOKYO, JAPAN THURSDAY, JANUARY 9, 1992 ACTION FYI ACTION FYI VICE PRESIDENT HORNER 1 SKINNER MCCLURE SCOWCROFT PETERSMEYER DARMAN PORTER BRADY ROGICH BROMLEY SMITH CARD FINDLAY SNOW DEMAREST PORTER ROSE FITZWATER GRAY BOSKIN HOLIDAY REMARKS: Please provide comments on the attached directly to Tony Snow, Rm. 122, x2930, with a copy to this office NO LATER THAN 3:00PM, FRIDAY, DECEMBER 27. Thank you. RESPONSE: good PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 Document No. 295/3155 WHITE HOUSE STAFFING MEMORANDUM DEC 27 A10: 52 12/26/91 3:00PM, FRIDAY, DEC. 27 DATE: ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL ADDRESS: JAPANESE WELCOMING COMMITTEE HOTEL NEW OTANI SUBJECT: TOKYO, JAPAN THURSDAY, JANUARY 9, 1992 ACTION FYI ACTION FYI VICE PRESIDENT HORNER SKINNER MCCLURE SCOWCROFT PETERSMEYER DARMAN PORTER BRADY ROGICH BROMLEY SMITH CARD FINDLAY SNOW DEMAREST PORTER ROSE FITZWATER GRAY BOSKIN HOLIDAY REMARKS: Please provide comments on the attached directly to Tony Snow, Rm. 122, x2930, with a copy to this office NO LATER THAN 3:00PM, FRIDAY, DECEMBER 27. Thank you. RESPONSE: Good ! Sungertaddingene, pentence on page 4. PHILLIP D. BRADY Assistant to the President Dollan Bromley. and Staff Secretary Ext. 2702 Grant / Grossman A:JAPAN Draft four December 26, 1991 91 DECRESIDENTIAL ADDRESS: JAPANESE WELCOMING COMMITTEE HOTEL NEW OTANI TOKYO, JAPAN THURSDAY, JANUARY 9, 1991 [Acknowledgements: Mr. Prime Minister; Members of the Diet; distinguished guests.] I come to Japan at the culmination of an historic journey, at a turning point in world events. The Soviet Union has vanished, and with it, the delusions of communism. Arabs and Israelis in the Middle East have set aside ancient hatreds in order to pursue the ideal of peace. Totalitarianism's tyranny has died, and freedom's phoenix is spreading its wings across nations from Latin America to Eastern Europe. Democracy has set down fragile roots even in such places as tiny Cambodia. Freedom was not reborn without pain. Its triumphs have been inscribed by blood and fire; its truths have been seared into our souls through pain and sacrifice. This Century teaches us two crucial lessons: First -- that protection and isolationism lead to war and poverty, and second -- that engagement and free trade lead to peace and prosperity. In this century, we learned anew that ideas have consequences. Technologies that transmit ideas in the blink of an eye give people the power to surmount barricades, elude barbed wire and pull down walls designed to hold back the tide of truth. We live in a world transformed -- shrunken by swift travel and instant communication; drawn closer by common interests, 2 ambitions and needs; propelled by the strength of people's imaginations and dreams. As leaders of this world, the United States and Japan must face the challenge of building economic freedom, individual liberty and free markets. History demands that we honor the sacrifice of our fathers by constructing a new commonwealth of freedom -- and by ensuring that isolation and protectionism remain the sleeping ghosts of the past, not the waking nightmares of the future. Today, I ask you to help build a new world -- one enriched by free trade and robust competition; a world that will support good jobs for workers everywhere. I come here to create opportunities for good American jobs, But let there be no misunderstanding -- American growth is in your best interest. And Asian growth is in ours. American businesses cannot flourish in Asia unless the economies of Asia thrive and grow. Here in Japan, you have a saying: "The lantern-bearer should go ahead." My friends, we are the lantern-bearers of our age. We must light the way to a world of peace and prosperity for generations to come. Let us move forward, together. The United States straddles two great oceans, the Atlantic and Pacific. We are an Atlantic nation, but we also are a Pacific nation. Our ties to the Asia- Pacific region grow daily. In the last fifteen years, the number of Americans of Southeast Asian origin has quadrupled. There are 3 more Laotians in the U.S. today than in the Laotian capital of Vientiane; more Filipinos in California than in Cebu. These Americans, along with hundreds of thousands from China, Japan, Vietnam, Cambodia, Korea, Thailand and Samoa -- enrich our society. They strengthen our bonds of kinship and trade. America has fought three major wars in the last half-century in the Asia-Pacific theater. What happens here matters very much to us. But at the core of our continuing Asian engagement stands our alliance with Japan. Rarely in history have two nations with such different geographic and cultural roots nurtured such an enduring relationship. Our people are brothers and sisters in democracy; together, we can help ensure the prosperity and security of the region. More broadly, our association will define the shape of the post-Cold War world. Consider the three key areas of our relationship. First, we must reinforce the U.S.-Japan security alliance. We enjoy a strong security link with Japan. Let us make the most efficient use of our defense resources by building greater coordination of our military forces and by promoting the two-way flow of defense technology. Such cooperation will enhance our security, and build even stronger political ties between us. In the wake of the Persian Gulf war, many nations have called upon Japan to share the burdens of world security. Let me say first that the American people appreciate deeply the support you gave us during the Gulf War. We also understand that Japan 4 has become a key player in the global order. Your foreign policy should reflect your larger responsibilities. Second, we must deepen our understanding of each other. For all of our interaction politically and economically, our people know very little of the other's history, traditions and language. We welcome the work of the Abe fund to expand exchanges and interactions -- intellectual, scientific and cultural. Thanks to it and programs like it, by the end of the century our two nations will have a much larger group of people who have lived in each other's country, speak each other's language and understand more fully how important we are to each other. Although more than 200,000 Asian students now study in American colleges and universities, more Americans must immerse themselves in Asian societies and cultures. As the exchange of free people and ideas flows between our nations, our economic relations have taken center stage. We are now each other's largest overseas trading partner. Japan will sell about $90 billion worth of goods and services to the United States this year; we will sell more than $40 billion to Japan. Our economies -- the world's two largest and most technologically advanced -- have become increasingly intertwined. This brings me to my third -- and most important -- point. We must acknowledge the economic tensions between us, and we must reduce those tensions now. The Asia-Pacific region has become the world's most rapidly growing economic dynamo. We now conduct more trade with Asia The effunity to more forward The frontions of Sectiology And working together we have The rexponsibility and and sythe science That underlies it 5 than with any other region on earth. Our trans-Pacific trade now exceeds 300 billion dollars a year. The United States exports more to Singapore than to Italy or Spain; more to Malaysia than to the entire Soviet Union; and more to Indonesia than to all of Eastern Europe put together. We will not support efforts to carve our planet into trading blocs. We cannot afford it, and we must not allow it. Instead, we must ensure a strong, two-way economic relationship between Japan and the United States -- with our markets more open to new goods, and our industries more open to new competitive ideas. American businesses learned during the past decade that the old ways no longer work in our changing, dynamic international marketplace. Our companies have cut costs, improved quality and fostered innovation. As a result, our products sell in markets everywhere -- except in Japan. We want to reduce the trade imbalance between us -- not through gimmicks or artificial devices, but simply by gaining complete access to your markets. We want to create fair opportunities for traders and investors -- both buyers and sellers -- by removing the road blocks, both seen and unseen, to free and fair trade. American business doesn't need a hand-out and doesn't want one. Our companies just want a chance to compete fairly in markets around the world. Our government remains committed to free trade, and 6 we will reduce our own trade barriers, as our allies cut away theirs. The United States and Japan can light the way to a world of free trade by concluding the Structural Impediments Initiative. This agreement plays a pivotal role in our on-going efforts to improve market access and remove non-tariff barriers to foreign investment. The United States and Japan also must lead the way to a successful conclusion for the Uruguay Round. Because of the benefits we derive from free trade, Japan and the United States bear a special responsibility for tackling the remaining difficult issues -- quickly and decisively. This is not a matter of charity: Free trade serves both our interests, and gives both our nations an opportunity to grow stronger, to assert even greater leadership in the Post Cold War world. Improving our trade relations means one thing: opening your markets. Many sectors of the Japanese economy remain closed to outside investment by complex and even unfair business practices. These practices hurt American companies, but they also hurt Japanese consumers. I've never had one American say to me: "Mr. President, please raise prices in this country." And I bet Japanese don't say that, either. Economic competition brings more consumer choices and lower prices. In fact, the Toys R Us that I visited in Kyoto offers prices thirty percent lower than its Japanese competition. That's good for us and that's good for you. 7 Many of our Japanese friends argue that the United States must improve its competitive fitness -- and they are right. We recognize that some of our bilateral trade imbalance stems from issues other than market access. Japan's products are competitive around the world because Japan has saved and invested at a rate double that of the United States. You have focused on applied research and development and new manufacturing technologies. Your companies have established the world's finest quality control systems. You have developed a highly educated labor force, and taken the long view to developing markets abroad. There is much for us to learn from you. We are taking steps to boost our competitiveness -- improving education, cutting taxes and regulations that hurt our economy; fighting the hidden tax of crime; stimulating innovation and risk; and recognizing companies that enhance productivity while improving product quality. I've brought with me a delegation of America's top business leaders, the first time in history that a U.S. President has done so. Every one of them can tell you that despite the fact that our economy is in some trouble right now, America still can draw upon tremendous strengths. Our basic research is still the best basic anywhere. We can boast of the world's finest universities. American technology remains on the cutting edge in such advanced fields as computers and biotechnology. Our society is the most diverse, 8 energetic, creative and talented in the world. It draws upon the strengths and insights of many cultures -- including yours. These businessmen will also tell you that they care about American jobs. They care about American exports. They know that the Asian-Pacific market offers enormous potential to American businesses that will accept the challenge of competition. Indeed, our export business is stronger than ever. We sold more exports last year than ever before. We enjoy a trade surplus with Europe. But our trade deficit with Japan is truly the exception. Let me say this: We've shown a lot of forbearance. Now we want equal access. We want fair play. // The American economy and American jobs -- like the Japanese economy and Japanese jobs -- increasingly depend on free trade and open markets. Nearly half of our GNP growth between 1985 and 1990 was attributable to exports. New exports abroad mean new jobs at home -- good jobs -- 19,000 new jobs for every billion dollars in manufactured exports, and nearly 25,000 jobs for every billion dollars in agricultural exports. Every American knows that economic engagement can ensure a better quality of life for themselves and their families. Free and fair trade gives people access to high quality at low prices. It enables societies to benefit from the best other societies have to offer. It produces good jobs for everyone. I've met with men and women from all walks of life in almost every state of the Union and let me say this: the American people feel very, very strongly in the necessity of creating a level 9 playing field for everyone. We want our trading partners to give U.S. companies the same kind of opportunities that their firms enjoy in the United States. That's not just free trade -that's fair trade -- and it creates a basis for even greater freedom and greater prosperity for all. Free trade has propelled Japan toward world leadership. Free markets have launched Japan toward economic prominence. Japan now must join the ranks of world leadership in strengthening the very institutions that have made us great: free markets and free people. Today marks a turning point for us in many ways. Together, we face the next millennium -- a new order for the ages, a new world of freedom and democracy. We stand as world powers, with the future presenting us with a decision. The United States has made its choice: against isolationism and in favor of engagement; against protectionism, and for free and fair trade. Today, I bid Japan to do the same -- because engagement and free trade are in your best interests. // Together, let us shape a new and open world, a world of vigorous competition and furious innovation; a world of greater peace, prosperity and hope than ever before. Let's join together for the sake of our workers, for the sake of world peace, and most importantly, for the sake of the generations to follow us. # # # Document No. 295/3155 WHITE HOUSE STAFFING MEMORANDUM 12/26/91 3:00PM, FRIDAY, DEC. 27 DATE: ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL ADDRESS: JAPANESE WELCOMING COMMITTEE HOTEL NEW OTANI SUBJECT: TOKYO, JAPAN THURSDAY, JANUARY 9, 1992 ACTION FYI ACTION FYI VICE PRESIDENT HORNER SKINNER MCCLURE SCOWCROFT PETERSMEYER DARMAN PORTER BRADY ROGICH BROMLEY SMITH FINDLAY CARD SNOW DEMAREST PORTER ROSE FITZWATER BOSKIN GRAY HOLIDAY REMARKS: Please provide comments on the attached directly to Tony Snow, Rm. 122, x2930, with a copy to this office NO LATER THAN 3:00PM, FRIDAY, DECEMBER 27. Thank you. RESPONSE: See comments attached. Thanks, 52 Elizabeth Luttig PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 OFFICE OF CABINET AFFAIRS STAFFING MEMORANDUM Date: 12/26 Due By: 12/27 2:00 pm Subject: PRESIDENTIAL ADDRESS JAPANESE WacominG COMMITTEE From: ELIZABETT ACTION CONCUR FYI ACTION CONCUR FYI HOLIDAY LEFKOWITZ BLUMENTHAL LUTTIG BUCHHOLZ PORTER CASSE SECHLER FARRAR SHANAHAN FITZHENRY FURCHTGOTT-ROTH HILL KUTCHINS Comments: by 12/27 as 2:00 Thanks, USTK Commerce a Treasmy State Grant / Grossman A:JAPAN Draft four December 26, 1991 91 DEC26 P1:47 ADDRESS: JAPANESE WELCOMING COMMITTEE HOTEL NEW OTANI TOKYO, JAPAN THURSDAY, JANUARY 9, 1991 [Acknowledgements: Mr. Prime Minister; Members of the Diet; distinguished guests.] I come to Japan at the culmination of an historic journey, at a turning point in world events. The Soviet Union has vanished, and with it, the delusions of communism. Arabs and Israelis in the Middle East have set aside ancient hatreds in order to pursue the ideal of peace. Totalitarianism's tyranny has died, and freedom's phoenix is spreading its wings across nations from Latin America to Eastern Europe. Democracy has set down fragile roots even in such places as tiny Cambodia. Freedom was not reborn without pain. Its triumphs have been inscribed by blood and fire; its truths have been seared into our souls through pain and sacrifice. This Century teaches us two crucial lessons: First -- that protection and isolationism lead to war and poverty, and second -- that engagement and free trade lead to peace and prosperity. In this century, we learned anew that ideas have consequences. Technologies that transmit ideas in the blink of an eye give people the power to surmount barricades, elude barbed wire and pull down walls designed to hold back the tide of truth. We live in a world transformed -- shrunken by swift travel and instant communication; drawn closer by common interests, 2 ambitions and needs; propelled by the strength of people's imaginations and dreams. As leaders of this world, the United States and Japan must face the challenge of building economic freedom, individual liberty and free markets. History demands that we honor the sacrifice of our fathers by constructing a new commonwealth of freedom -- and by ensuring that isolation and protectionism remain the sleeping ghosts of the past, not the waking nightmares of the future. Today, I ask you to help build a new world -- one enriched by free trade and robust competition; a world that will support good jobs for workers everywhere. us. exports and (connace) I come here to create opportunities for good American jobs, But let there be no misunderstanding -- American growth is in your best interest. And Asian growth is in ours. American businesses cannot flourish in Asia unless the economies of Asia thrive and grow. Here in Japan, you have a saying: "The lantern-bearer should go ahead. " My friends, we are the lantern-bearers of our age. We must light the way to a world of peace and prosperity for generations to come. Let us move forward, together. The United States straddles two great oceans, the Atlantic and Pacific. We are an Atlantic nation, but we also are a Pacific nation. Our ties to the Asia- Pacific region grow daily. In the last fifteen years, the number of Americans of Southeast Asian origin has quadrupled. There are 3 more Laotians in the U.S. today than in the Laotian capital of Vientiane; more Filipinos in California than in Cebu. These Americans, along with hundreds of thousands from China, Japan, Vietnam, Cambodia, Korea, Thailand and Samoa -- enrich our society. They strengthen our bonds of kinship and trade. America has fought three major wars in the last half-century in the Asia-Pacific theater. What happens here matters very much to us. But at the core of our continuing Asian engagement stands our alliance with Japan. Rarely in history have two nations with such different geographic and cultural roots nurtured such an enduring relationship. Our people are brothers and sisters in democracy; together, we can help ensure the prosperity and security of the region. More broadly, our association will define the shape of the post-Cold War world. Consider the three key areas of our relationship. First, we must reinforce the U.S.-Japan security alliance. We enjoy a strong security link with Japan. Let us make the most efficient use of our defense resources by building greater coordination of our military forces and by promoting the two-way flow of defense technology. Such cooperation will enhance our security, and build even stronger political ties between us. In the wake of the Persian Gulf war, many nations have called upon Japan to share the burdens of world security. Let me say first that the American people appreciate deeply the support you gave us during the Gulf War. We also understand that Japan 4 has become a key player in the global order. Your foreign policy should reflect your larger responsibilities. Second, we must deepen our understanding of each other. For all of our interaction politically and economically, our people know very little of the other's history, traditions and language. We welcome the work of the Abe fund to expand exchanges and interactions -- intellectual, scientific and cultural. Thanks to it and programs like it, by the end of the century our two nations will have a much larger group of people who have lived in each other's country, speak each other's language and understand more fully how important we are to each other. Although more than 200,000 Asian students now study in American colleges and universities, more Americans must immerse themselves in Asian societies and cultures. As the exchange of free people and ideas flows between our nations, our economic relations have taken center stage. We are now each other's largest overseas trading partner. Japan will sell about $90 billion worth of goods and services to the United States this year; we will sell more than $40 billion to Japan. Our economies -- the world's two largest and most technologically advanced -- have become increasingly intertwined. This brings me to my third -- and most important -- point. We must acknowledge the economic tensions between us, and we must reduce those tensions now. The Asia-Pacific region has become the world's most rapidly growing economic dynamo. We now conduct more trade with Asia 5 than with any other region on earth. Our trans-Pacific trade now exceeds 300 billion dollars a year. The United States exports more to Singapore than to Italy or Spain; more to Malaysia than all of the Countries in the former Commerce) to the entire Soviet Union; and more to Indonesia than to all of Eastern Europe put together. We will not support efforts to carve our planet into trading blocs. We cannot afford it, and we must not allow it. Instead, we must ensure a strong, two-way economic relationship between Japan and the United States -- with our and services markets more open to new goods, and our industries more open to new competitive ideas. American businesses learned during the past decade that the old ways no longer work in our changing, dynamic international marketplace. Our companies have cut costs, improved quality and fostered innovation. As a result, our products sell in markets everywhere -- except in Japan. We want to reduce the trade imbalance between us -- not through gimmicks or artificial devices, but simply by gaining complete access to your markets. We want to create fair opportunities for traders and investors -- both buyers and sellers -- by removing the road blocks, both seen and unseen, to free and fair trade. American business doesn't need a hand-out and doesn't want one. Our companies just want a chance to compete fairly in markets around the world. Our government remains committed to free trade, and 6 we will reduce our own trade barriers, as our allies cut away theirs. The United States and Japan can light the way to a world of by reinvigorating (Commerce) (USTR) free trade by concluding the Structural Impediments Initiative. goint talks updentakin (wr)Commerce) committent t(commerce) (USTR) Thise agreement plays a pivotal role in our on-going efforts to improve market access and remove non-tariff barriers to foreign investment, and reduce trade imbalances (Treasury) The United States and Japan also must lead the way to a successful conclusion for the Uruguay Round. Because of the benefits we derive from free trade, Japan and the United States bear a special responsibility for tackling the remaining difficult issues -- quickly and decisively. This is not a matter of charity: Free trade serves both our interests, and gives both our nations an opportunity to grow stronger, to assert even greater leadership in the Post Cold War world. Improving our trade relations means one thing: opening your markets. Many sectors of the Japanese economy remain closed to outside investment by complex and even unfair business practices. These practices hurt American companies, but they also hurt Japanese consumers. I've never had one American say to me: "Mr. President, Is please raise prices in this country." And I bet Japanese don't the Toys -R- ? say that, either. Economic competition brings more consumer us, (USTR) in Kyoto choices and lower prices. In fact, the Toys R Us that I visited Check3090 in Kyoto offers prices thirty percent lower than its Japanese lower competition. That's good for us and that's good for you. (USTR) 7 Many of our Japanese friends argue that the United States must improve its competitive fitness -- and they are right. We recognize that some of our bilateral trade imbalance stems from issues other than market access. Japan's products are competitive around the world because Japan has saved and invested at a rate double that of the United Please call States. You have focused on applied research and development and Merit new manufacturing technologies. Your companies have established Janow re the world's finest quality control systems. You have developed a this page highly educated labor force, and taken the long view to 395-5020 developing markets abroad. USTR There is much for us to learn from you. We are taking steps to boost our competitiveness -- improving education, cutting taxes and regulations that hurt our economy; fighting the hidden tax of crime; stimulating innovation and risk; and recognizing companies that enhance productivity while improving product quality. I've brought with me a delegation of America's top business leaders, the first time in history that a U.S. President has done so. Every one of them can tell you that despite the fact that our economy is in some trouble right now, America still can draw upon tremendous strengths. Our basic research is still the best basic anywhere. We can boast of the world's finest universities. American technology remains on the cutting edge in such advanced fields as computers and biotechnology. Our society is the most diverse, 8 energetic, creative and talented in the world. It draws upon the strengths and insights of many cultures -- including yours. These businessmen will also tell you that they care about American jobs. They care about American exports. They know that the Asian-Pacific market offers enormous potential to American businesses that will accept the challenge of competition. Indeed, our export business is stronger than ever. We sold more exports last year than ever before. We enjoy a trade apprears entractable and CWTK) surplus with Europe. But our trade deficit with Japan is truly too mar oc the exception. Let me say this: We've shown a lot of an cultimation forbearance. Now we want equal access. We want fair play. // USTR The American economy and American jobs -- like the Japanese economy and Japanese jobs -- increasingly depend on free trade 1 1/3 of GDP and open markets. Nearly half of our GNP growth between 1985 and 1990 was attributable to exports. New exports abroad mean new jobs at home -- good jobs 19,000 new jobs for every billion inconsise WI yesmags dollars in manufactured exports, and nearly 25,000 jobs for every Speecies billion dollars in agricultural exports. (trees Crees. Every American knows that economic engagement can ensure a better quality of life for themselves and their families. Free and fair trade gives people access to high quality at low prices. It enables societies to benefit from the best other societies have to offer. It produces good jobs for everyone. I've met with men and women from all walks of life in almost every state of the Union and let me say this: the American people feel very, very strongly in the necessity of creating a level 9 playing field for everyone. We want our trading partners to give U.S. companies the same kind of opportunities that their firms enjoy in the United States. That's not just free trade -that's fair trade -- and it creates a basis for even greater freedom and greater prosperity for all. Free trade has propelled Japan toward world leadership. Free markets have launched Japan toward economic prominence. Japan now must join the ranks of world leadership in strengthening the very institutions that have made us great: free markets and free people. Today marks a turning point for us in many ways. Together, we face the next millennium -- a new order for the ages, a new world of freedom and democracy. We stand as world powers, with the future presenting us with a decision. The United States has made its choice: against isolationism and in favor of engagement; against protectionism, and for free and fair trade. Today, I bid Japan to do the same -- because engagement and free trade are in your best interests. // Together, let us shape a new and open world, a world of vigorous competition and furious innovation; a world of greater peace, prosperity and hope than ever before. Let's join together for the sake of our workers, for the sake of world peace, and most importantly, for the sake of the generations to follow us. # # # THE WHITE HOUSE OFFICE OF CABINET AFFAIRS STAFFINGATE MORANDUM WASHINGTON Friday Date: 12/24 Due by: 12/27 1:00 pm Subject: Presidential Speeches From: Elizabeth Cutting 456-6630 Fax 454-2223 Action FYI Action FYI ALL CABINET MEMBERS Vice President CIA CEA Agriculture Commerce CEQ EPA Defense GSA Education NASA Energy National Science Foundation HHS ONDCP HUD OPM Interior Justice OSTP Labor SBA UN OMB State Cicconi (For WH Staffing) Transportation Treasury USTR Veterans COMMENTS: Commerce, Treasury and USTR- please review and provide Commons directly to me by Friday, 12/27 as 1:00 PM. Stare only- please review and provide comments to Bill Sittmenns Office in NSC. His Phone Number is 246-2224 Office of Cabinet Affairs Fax Transmission Cover TO: Bob Pearson Deb Lee O'Donnell LOCATION: Room 7224 S/S Please deliver immediately to Lee O'Donnell FAX NUMBER: 647-0464 6434 FROM: Elizabeth Luttig Number of pages to follow: 12 Office of Cabinet Affairs Telephone: (202) 456-6630 Fax: (202) 456-2223 Comments: Please review the attached item for Department of State clearance. Thanks. Please Rush THE WHITE HOUSE WASHINGTON Office of Cabinet Affairs Fax Transmission Cover TO: Tom Collamore LOCATION: Room 5422 -- Department of Commerce FAX NUMBER: 377-2741 FROM: Elizabeth Luttig Number of pages to follow: 12 Office of Cabinet Affairs Telephone: (202) 456-6630 Fax: (202) 456-2223 Comments: Please review the attached item for Department of Commerce clearance. Thanks. Please Rush THE WHITE HOUSE WASHINGTON Office of Cabinet Affairs Fax Transmission Cover TO: Blair Downing FAX NUMBER: 786-8422 FROM: Elizabeth Luttig Number of pages to follow: 11 Office of Cabinet Affairs Telephone: (202) 456-6630 Fax: (202) 456-2223 Comments: Please review the attached item for Treasury clearance. Thanks. THE WHITE HOUSE WASHINGTON Office of Cabinet Affairs Fax Transmission Cover TO: David Weiss LOCATION: Room 216 -- United States Trade Representative FAX NUMBER: 395-3640 FROM: Elizabeth Luttig Number of pages to follow: 12 Office of Cabinet Affairs Telephone: (202) 456-6630 Fax: (202) 456-2223 Comments: Please review the attached item for USTR clearance. Thanks. Please Rush Document No. 295/3155 WHITE HOUSE STAFFING MEMORANDUM 12/26/91 DATE: 3:00PM, FRIDAY, DEC. 27 ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL ADDRESS: JAPANESE WELCOMING COMMITTEE HOTEL NEW OTANI SUBJECT: TOKYO, JAPAN THURSDAY, JANUARY 9, 1992 ACTION FYI ACTION FYI VICE PRESIDENT HORNER SKINNER MCCLURE SCOWCROFT PETERSMEYER DARMAN PORTER BRADY ROGICH BROMLEY SMITH CARD FINDLAY SNOW DEMAREST PORTER ROSE FITZWATER GRAY BOSKIN HOLIDAY REMARKS: Please provide comments on the attached directly to Tony Snow, Rm. 122, x2930, with a copy to this office NO LATER THAN 3:00PM, FRIDAY, DECEMBER 27. Thank you. RESPONSE: OK.S.R PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 Grant / Grossman A:JAPAN Draft four 47 December 26, 1991 91 DEPRESIDENTIAL ADDRESS: JAPANESE WELCOMING COMMITTEE HOTEL NEW OTANI TOKYO, JAPAN THURSDAY, JANUARY 9, 1991 [Acknowledgements: Mr. Prime Minister; Members of the Diet; distinguished guests.] I come to Japan at the culmination of an historic journey, at a turning point in world events. The Soviet Union has vanished, and with it, the delusions of communism. Arabs and Israelis in the Middle East have set aside ancient hatreds in order to pursue the ideal of peace. Totalitarianism's tyranny has died, and freedom's phoenix is spreading its wings across nations from Latin America to Eastern Europe. Democracy has set down fragile roots even in such places as tiny Cambodia. Freedom was not reborn without pain. Its triumphs have been inscribed by blood and fire; its truths have been seared into our souls through pain and sacrifice. This Century teaches us two crucial lessons: First -- that protection and isolationism lead to war and poverty, and second -- that engagement and free trade lead to peace and prosperity. In this century, we learned anew that ideas have consequences. Technologies that transmit ideas in the blink of an eye give people the power to surmount barricades, elude barbed wire and pull down walls designed to hold back the tide of truth. We live in a world transformed -- shrunken by swift travel and instant communication; drawn closer by common interests, 2 ambitions and needs; propelled by the strength of people's imaginations and dreams. As leaders of this world, the United States and Japan must face the challenge of building economic freedom, individual liberty and free markets. History demands that we honor the sacrifice of our fathers by constructing a new commonwealth of freedom -- and by ensuring that isolation and protectionism remain the sleeping ghosts of the past, not the waking nightmares of the future. Today, I ask you to help build a new world -- one enriched by free trade and robust competition; a world that will support good jobs for workers everywhere. I come here to create opportunities for good American jobs, But let there be no misunderstanding -- American growth is in your best interest. And Asian growth is in ours. American businesses cannot flourish in Asia unless the economies of Asia thrive and grow. Here in Japan, you have a saying: "The lantern-bearer should go ahead." My friends, we are the lantern-bearers of our age. We must light the way to a world of peace and prosperity for generations to come. Let us move forward, together. The United States straddles two great oceans, the Atlantic and Pacific. We are an Atlantic nation, but we also are a Pacific nation. Our ties to the Asia- Pacific region grow daily. In the last fifteen years, the number of Americans of Southeast Asian origin has quadrupled. There are 3 more Laotians in the U.S. today than in the Laotian capital of Vientiane; more Filipinos in California than in Cebu. These Americans, along with hundreds of thousands from China, Japan, Vietnam, Cambodia, Korea, Thailand and Samoa -- enrich our society. They strengthen our bonds of kinship and trade. America has fought three major wars in the last half-century in the Asia-Pacific theater. What happens here matters very much to us. But at the core of our continuing Asian engagement stands our alliance with Japan. Rarely in history have two nations with such different geographic and cultural roots nurtured such an enduring relationship. Our people are brothers and sisters in democracy; together, we can help ensure the prosperity and security of the region. More broadly, our association will define the shape of the post-Cold War world. Consider the three key areas of our relationship. First, we must reinforce the U.S.-Japan security alliance. We enjoy a strong security link with Japan. Let us make the most efficient use of our defense resources by building greater coordination of our military forces and by promoting the two-way flow of defense technology. Such cooperation will enhance our security, and build even stronger political ties between us. In the wake of the Persian Gulf war, many nations have called upon Japan to share the burdens of world security. Let me say first that the American people appreciate deeply the support you gave us during the Gulf War. We also understand that Japan 4 has become a key player in the global order. Your foreign policy should reflect your larger responsibilities. Second, we must deepen our understanding of each other. For all of our interaction politically and economically, our people know very little of the other's history, traditions and language. We welcome the work of the Abe fund to expand exchanges and interactions -- intellectual, scientific and cultural. Thanks to it and programs like it, by the end of the century our two nations will have a much larger group of people who have lived in each other's country, speak each other's language and understand more fully how important we are to each other. Although more than 200,000 Asian students now study in American colleges and universities, more Americans must immerse themselves in Asian societies and cultures. As the exchange of free people and ideas flows between our nations, our economic relations have taken center stage. We are now each other's largest overseas trading partner. Japan will sell about $90 billion worth of goods and services to the United States this year; we will sell more than $40 billion to Japan. Our economies -- the world's two largest and most technologically advanced -- have become increasingly intertwined. This brings me to my third -- and most important -- point. We must acknowledge the economic tensions between us, and we must reduce those tensions now. The Asia-Pacific region has become the world's most rapidly growing economic dynamo. We now conduct more trade with Asia 5 than with any other region on earth. Our trans-Pacific trade now exceeds 300 billion dollars a year. The United States exports more to Singapore than to Italy or Spain; more to Malaysia than to the entire Soviet Union; and more to Indonesia than to all of Eastern Europe put together. We will not support efforts to carve our planet into trading blocs. We cannot afford it, and we must not allow it. Instead, we must ensure a strong, two-way economic relationship between Japan and the United States -- with our markets more open to new goods, and our industries more open to new competitive ideas. American businesses learned during the past decade that the old ways no longer work in our changing, dynamic international marketplace. Our companies have cut costs, improved quality and fostered innovation. As a result, our products sell in markets everywhere -- except in Japan. We want to reduce the trade imbalance between us -- not through gimmicks or artificial devices, but simply by gaining complete access to your markets. We want to create fair opportunities for traders and investors -- both buyers and sellers -- by removing the road blocks, both seen and unseen, to free and fair trade. American business doesn't need a hand-out and doesn't want one. Our companies just want a chance to compete fairly in markets around the world. Our government remains committed to free trade, and 6 we will reduce our own trade barriers, as our allies cut away theirs. The United States and Japan can light the way to a world of free trade by concluding the Structural Impediments Initiative. This agreement plays a pivotal role in our on-going efforts to improve market access and remove non-tariff barriers to foreign investment. The United States and Japan also must lead the way to a successful conclusion for the Uruguay Round. Because of the benefits we derive from free trade, Japan and the United States bear a special responsibility for tackling the remaining difficult issues -- quickly and decisively. This is not a matter of charity: Free trade serves both our interests, and gives both our nations an opportunity to grow stronger, to assert even greater leadership in the Post Cold War world. Improving our trade relations means one thing: opening your markets. Many sectors of the Japanese economy remain closed to outside investment by complex and even unfair business practices. These practices hurt American companies, but they also hurt Japanese consumers. I've never had one American say to me: "Mr. President, please raise prices in this country." And I bet Japanese don't say that, either. Economic competition brings more consumer choices and lower prices. In fact, the Toys R Us that I visited in Kyoto offers prices thirty percent lower than its Japanese competition. That's good for us and that's good for you. 7 Many of our Japanese friends argue that the United States must improve its competitive fitness -- and they are right. We recognize that some of our bilateral trade imbalance stems from issues other than market access. Japan's products are competitive around the world because Japan has saved and invested at a rate double that of the United States. You have focused on applied research and development and new manufacturing technologies. Your companies have established the world's finest quality control systems. You have developed a highly educated labor force, and taken the long view to developing markets abroad. There is much for us to learn from you. We are taking steps to boost our competitiveness -- improving education, cutting taxes and regulations that hurt our economy; fighting the hidden tax of crime; stimulating innovation and risk; and recognizing companies that enhance productivity while improving product quality. I've brought with me a delegation of America's top business leaders, the first time in history that a U.S. President has done SO. Every one of them can tell you that despite the fact that our economy is in some trouble right now, America still can draw upon tremendous strengths. Our basic research is still the best basic anywhere. We can boast of the world's finest universities. American technology remains on the cutting edge in such advanced fields as computers and biotechnology. Our society is the most diverse, 8 energetic, creative and talented in the world. It draws upon the strengths and insights of many cultures -- including yours. These businessmen will also tell you that they care about American jobs. They care about American exports. They know that the Asian-Pacific market offers enormous potential to American businesses that will accept the challenge of competition. Indeed, our export business is stronger than ever. We sold more exports last year than ever before. We enjoy a trade surplus with Europe. But our trade deficit with Japan is truly the exception. Let me say this: We've shown a lot of forbearance. Now we want equal access. We want fair play. // The American economy and American jobs -- like the Japanese economy and Japanese jobs -- increasingly depend on free trade and open markets. Nearly half of our GNP growth between 1985 and 1990 was attributable to exports. New exports abroad mean new jobs at home -- good jobs -- 19,000 new jobs for every billion dollars in manufactured exports, and nearly 25,000 jobs for every billion dollars in agricultural exports. Every American knows that economic engagement can ensure a better quality of life for themselves and their families. Free and fair trade gives people access to high quality at low prices. It enables societies to benefit from the best other societies have to offer. It produces good jobs for everyone. I've met with men and women from all walks of life in almost every state of the Union and let me say this: the American people feel very, very strongly in the necessity of creating a level 9 playing field for everyone. We want our trading partners to give U.S. companies the same kind of opportunities that their firms enjoy in the United States. That's not just free trade -that's fair trade -- and it creates a basis for even greater freedom and greater prosperity for all. Free trade has propelled Japan toward world leadership. Free markets have launched Japan toward economic prominence. Japan now must join the ranks of world leadership in strengthening the very institutions that have made us great: free markets and free people. Today marks a turning point for us in many ways. Together, we face the next millennium -- a new order for the ages, a new world of freedom and democracy. We stand as world powers, with the future presenting us with a decision. The United States has made its choice: against isolationism and in favor of engagement; against protectionism, and for free and fair trade. Today, I bid Japan to do the same -- because engagement and free trade are in your best interests. // Together, let us shape a new and open world, a world of vigorous competition and furious innovation; a world of greater peace, prosperity and hope than ever before. Let's join together for the sake of our workers, for the sake of world peace, and most importantly, for the sake of the generations to follow us. # # # THE WHITE HOUSE WASHINGTON December 27, 1991 MEMORANDUM FOR TONY SNOW DEPUTY ASSISTANT TO THE PRESIDENT FOR COMMUNICATIONS AND DIRECTOR OF SPEECHWRITING FROM: CHESTER Chestu Paul PAUL BEACH, Beach,2. JR. ASSOCIATE COUNSEL TO THE PRESIDENT SUBJECT: Draft Presidential Address - Japanese Welcoming Committee, Hotel New Otani, Tokyo, Japan, Thursday, January 9, 1992 This responds to Phil Brady's memorandum of December 26, 1991, requesting comments on these proposed Presidential remarks. This Office has no legal objection to the address as proposed. Two minor style/tone suggestions are offered for your consideration: -- At page 1, the assertion that Arabs and Israelis have "set aside" ancient hatreds to pursue peace may strike some as overly sanguine. This might be avoided, without implying pessimism, by saying instead that they have "tempered" those hatreds. -- At pages 8-9, the phrase "feel very, very strongly in the necessity of" is jarring. This might be better phrased as "believe ... in" -- which I think is stronger -- or "feel about. " Thank you for the opportunity to comment. CC: Phil Brady Document No. 295/3155 WHITE HOUSE STAFFING MEMORANDUM DATE. 12/26/91 ACTION/CONCURRENCE/COMMENT DUE BY: 3:00PM, FRIDAY, DEC. 27 PRESIDENTIAL ADDRESS: JAPANESE WELCOMING COMMITTEE HOTEL NEW OTANI SUBJECT: TOKYO, JAPAN THURSDAY, JANUARY 9, 1992 ACTION FYI ACTION FYI VICE PRESIDENT HORNER SKINNER MCCLURE SCOWCROFT PETERSMEYER DARMAN PORTER BRADY ROGICH BROMLEY SMITH CARD FINDLAY DEMAREST SNOW PORTER ROSE FITZWATER GRAY BOSKIN HOLIDAY REMARKS: Please provide comments on the attached directly to Tony Snow, Rm. 122, x2930, with a copy to this office NO LATER THAN 3:00PM, FRIDAY, DECEMBER 27. Thank you. RESPONSE: PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 Grant / Grossman A:JAPAN Draft four December 26, 1991 31 ADDRESS: JAPANESE WELCOMING COMMITTEE HOTEL NEW OTANI TOKYO, JAPAN THURSDAY, JANUARY 9, 1991 [Acknowledgements: Mr. Prime Minister; Members of the Diet; distinguished guests.] I come to Japan at the culmination of an historic journey, at a turning point in world events. The Soviet Union has vanished, and with it, the delusions of communism. Arabs and Israelis in the Middle East have set aside ancient hatreds in order to pursue the ideal of peace. Totalitarianism's tyranny has died, and freedom's phoenix is spreading its wings across nations from Latin America to Eastern Europe. Democracy has set down fragile roots even in such places as tiny Cambodia. Freedom was not reborn without pain. Its triumphs have been inscribed by blood and fire; its truths have been seared into our souls through pain and sacrifice. This Century teaches us two crucial lessons: First -- that protection and isolationism lead to war and poverty, and second -- that engagement and free trade lead to peace and prosperity. In this century, we learned anew that ideas have consequences. Technologies that transmit ideas in the blink of an eye give people the power to surmount barricades, elude barbed wire and pull down walls designed to hold back the tide of truth. We live in a world transformed -- shrunken by swift travel and instant communication; drawn closer by common interests, 2 ambitions and needs; propelled by the strength of people's imaginations and dreams. As leaders of this world, the United States and Japan must face the challenge of building economic freedom, individual liberty and free markets. History demands that we honor the sacrifice of our fathers by constructing a new commonwealth of freedom -- and by ensuring that isolation and protectionism remain the sleeping ghosts of the past, not the waking nightmares of the future. Today, I ask you to help build a new world -- one enriched by free trade and robust competition; a world that will support good jobs for workers everywhere. I come here to create opportunities for good American jobs, But let there be no misunderstanding -- American growth is in your best interest. And Asian growth is in ours. American businesses cannot flourish in Asia unless the economies of Asia thrive and grow. Here in Japan, you have a saying: "The lantern-bearer should go ahead. " My friends, we are the lantern-bearers of our age. We must light the way to a world of peace and prosperity for generations to come. Let us move forward, together. The United States straddles two great oceans, the Atlantic and Pacific. We are an Atlantic nation, but we also are a Pacific nation. Our ties to the Asia- Pacific region grow daily. In the last fifteen years, the number of Americans of Southeast Asian origin has quadrupled. There are 3 more Laotians in the U.S. today than in the Laotian capital of Vientiane; more Filipinos in California than in Cebu. These Americans, along with hundreds of thousands from China, Japan, Vietnam, Cambodia, Korea, Thailand and Samoa -- enrich our society. They strengthen our bonds of kinship and trade. America has fought three major wars in the last half-century in the Asia-Pacific theater. What happens here matters very much to us. But at the core of our continuing Asian engagement stands our alliance with Japan. Rarely in history have two nations with such different geographic and cultural roots nurtured such an enduring relationship. Our people are brothers and sisters in democracy; together, we can help ensure the prosperity and security of the region. More broadly, our association will define the shape of the post-Cold War world. Consider the three key areas of our relationship. First, we must reinforce the U.S.-Japan security alliance. We enjoy a strong security link with Japan. Let us make the most efficient use of our defense resources by building greater coordination of our military forces and by promoting the two-way flow of defense technology. Such cooperation will enhance our security, and build even stronger political ties between us. In the wake of the Persian Gulf war, many nations have called upon Japan to share the burdens of world security. Let me say first that the American people appreciate deeply the support you gave us during the Gulf War. We also understand that Japan 4 has become a key player in the global order. Your foreign policy should reflect your larger responsibilities. Second, we must deepen our understanding of each other. For all of our interaction politically and economically, our people know very little of the other's history, traditions and language. We welcome the work of the Abe fund to expand exchanges and interactions -- intellectual, scientific and cultural. Thanks to it and programs like it, by the end of the century our two nations will have a much larger group of people who have lived in each other's country, speak each other's language and understand more fully how important we are to each other. Although more than 200,000 Asian students now study in American colleges and universities, more Americans must immerse themselves in Asian societies and cultures. As the exchange of free people and ideas flows between our nations, our economic relations have taken center stage. We are now each other's largest overseas trading partner. Japan will sell about $90 billion worth of goods and services to the United States this year; we will sell more than $40 billion to Japan. Our economies -- the world's two largest and most technologically advanced -- have become increasingly intertwined. This brings me to my third -- and most important -- point. We must acknowledge the economic tensions between us, and we must reduce those tensions now. The Asia-Pacific region has become the world's most rapidly growing economic dynamo. We now conduct more trade with Asia 5 than with any other region on earth. Our trans-Pacific trade now exceeds 300 billion dollars a year. The United States exports more to Singapore than to Italy or Spain; more to Malaysia than to the entire Soviet Union; and more to Indonesia than to all of Eastern Europe put together. We will not support efforts to carve our planet into trading blocs. We cannot afford it, and we must not allow it. Instead, we must ensure a strong, two-way economic relationship between Japan and the United States -- with our markets more open to new goods, and our industries more open to new competitive ideas. American businesses learned during the past decade that the old ways no longer work in our changing, dynamic international marketplace. Our companies have cut costs, improved quality and fostered innovation. As a result, our products sell in markets everywhere -- except in Japan. We want to reduce the trade imbalance between us -- not through gimmicks or artificial devices, but simply by gaining complete access to your markets. We want to create fair opportunities for traders and investors -- both buyers and sellers -- by removing the road blocks, both seen and unseen, to free and fair trade. American business doesn't need a hand-out and doesn't want one. Our companies just want a chance to compete fairly in markets around the world. Our government remains committed to free trade, and 6 we will reduce our own trade barriers, as our allies cut away theirs. The United States and Japan can light the way to a world of free trade by concluding the Structural Impediments Initiative. This agreement plays a pivotal role in our on-going efforts to improve market access and remove non-tariff barriers to foreign investment. The United States and Japan also must lead the way to a successful conclusion for the Uruguay Round. Because of the benefits we derive from free trade, Japan and the United States bear a special responsibility for tackling the remaining difficult issues -- quickly and decisively. This is not a matter of charity: Free trade serves both our interests, and gives both our nations an opportunity to grow stronger, to assert even greater leadership in the Post Cold War world. Improving our trade relations means one thing: opening your markets. Many sectors of the Japanese economy remain closed to outside investment by complex and even unfair business practices. These practices hurt American companies, but they also hurt Japanese consumers. I've never had one American say to me: "Mr. President, please raise prices in this country." And I bet Japanese don't say that, either. Economic competition brings more consumer choices and lower prices. In fact, the Toys R Us that I visited in Kyoto offers prices thirty percent lower than its Japanese competition. That's good for us and that's good for you. 7 Many of our Japanese friends argue that the United States must improve its competitive fitness -- and they are right. We recognize that some of our bilateral trade imbalance stems from issues other than market access. Japan's products are competitive around the world because Japan has saved and invested at a rate double that of the United States. You have focused on applied research and development and new manufacturing technologies. Your companies have established the world's finest quality control systems. You have developed a highly educated labor force, and taken the long view to developing markets abroad. There is much for us to learn from you. We are taking steps to boost our competitiveness -- improving education, cutting taxes and regulations that hurt our economy; fighting the hidden tax of crime; stimulating innovation and risk; and recognizing companies that enhance productivity while improving product quality. I've brought with me a delegation of America's top business leaders, the first time in history that a U.S. President has done so. Every one of them can tell you that despite the fact that our economy is in some trouble right now, America still can draw upon tremendous strengths. Our basic research is still the best basic anywhere. We can boast of the world's finest universities. American technology remains on the cutting edge in such advanced fields as computers and biotechnology. Our society is the most diverse, 8 energetic, creative and talented in the world. It draws upon the strengths and insights of many cultures -- including yours. These businessmen will also tell you that they care about American jobs. They care about American exports. They know that the Asian-Pacific market offers enormous potential to American businesses that will accept the challenge of competition. Indeed, our export business is stronger than ever. We sold more exports last year than ever before. We enjoy a trade surplus with Europe. But our trade deficit with Japan is truly the exception. Let me say this: We've shown a lot of forbearance. Now we want equal access. We want fair play. // The American economy and American jobs -- like the Japanese economy and Japanese jobs -- increasingly depend on free trade and open markets. Nearly half of our GNP growth between 1985 and 1990 was attributable to exports. New exports abroad mean new jobs at home -- good jobs -- 19,000 new jobs for every billion dollars in manufactured exports, and nearly 25,000 jobs for every billion dollars in agricultural exports. Every American knows that economic engagement can ensure a better quality of life for themselves and their families. Free and fair trade gives people access to high quality at low prices. It enables societies to benefit from the best other societies have to offer. It produces good jobs for everyone. I've met with men and women from all walks of life in almost every state of the Union and let me say this: the American people feel very, very strongly in the necessity of creating a level 9 playing field for everyone. We want our trading partners to give U.S. companies the same kind of opportunities that their firms enjoy in the United States. That's not just free trade -that's fair trade -- and it creates a basis for even greater freedom and greater prosperity for all. Free trade has propelled Japan toward world leadership. Free markets have launched Japan toward economic prominence. Japan now must join the ranks of world leadership in strengthening the very institutions that have made us great: free markets and free people. Today marks a turning point for us in many ways. Together, we face the next millennium -- a new order for the ages, a new world of freedom and democracy. We stand as world powers, with the future presenting us with a decision. The United States has made its choice: against isolationism and in favor of engagement; against protectionism, and for free and fair trade. Today, I bid Japan to do the same -- because engagement and free trade are in your best interests. // Together, let us shape a new and open world, a world of vigorous competition and furious innovation; a world of greater peace, prosperity and hope than ever before. Let's join together for the sake of our workers, for the sake of world peace, and most importantly, for the sake of the generations to follow us. # # # advance Document No. 295/3155 copy snow. 9432 WHITE HOUSE STAFFING MEMORANDUM DATE: 12/26/91 ACTION/CONCURRENCE/COMMENT DUE BY: 3:00PM, FRIDAY, DEC. 27 PRESIDENTIAL ADDRESS: JAPANESE WELCOMING COMMITTEE HOTEL NEW OTANI SUBJECT: TOKYO, JAPAN THURSDAY, JANUARY 9, 1992 ACTION FYI ACTION FYI VICE PRESIDENT HORNER SKINNER MCCLURE SCOWCROFT PETERSMEYER DARMAN PORTER BRADY ROGICH BROMLEY SMITH CARD FINDLAY DEMAREST SNOW PORTER ROSE FITZWATER GRAY BOSKIN HOLIDAY REMARKS: Please provide comments on the attached directly to Tony Snow, Rm. 122, x2930, with a copy to this office NO LATER THAN 3:00PM, FRIDAY, DECEMBER 27. Thank you. RESPONSE: NSC concurs with changes as noted Brent Scowcroft PHILLIP D. BRADY Assistant to the President CC: Phillip Brady and Staff Secretary Ext. 2702 Grant / Grossman A:JAPAN Draft four 26 pl 47 December 26, 1991 31 LPRESIDENTIAL ADDRESS: JAPANESE WELCOMING COMMITTEE HOTEL NEW OTANI TOKYO, JAPAN THURSDAY, JANUARY 9, 1991 [Acknowledgements: Mr. Prime Minister; Members of the Diet; Jerney distinguished guests.] not important I come to Japan at the culmination of an (historie) journey, history rare moment in history at a turning point in world events. The Soviet Union has menace vanished, and with it, the delusions of communism. Arabs and Israelis in the Middle East have set aside ancient hatreds in order to pursue the ideal of peace. Totalitarianism's tyranny has died, and freedom's phoenix is spreading its wings [across irre levant to audiend nations from Latin America to Eastern Europe] Democracy has set down fragile roots even in such places as (tiny) Cambodia. A new Timsulty respect for human rights is on The more Freedom was not reborn without pain. Its triumphs have been with? inscribed by blood and fire; its truths have been seared into our hardwork souls through [pain] and sacrifice, This Century teaches us two it has is tablished itself with startling bursti of and production sand itsponomic accomplice reconstruct crucial lessons: and despair First -- that [protection and] isolationism lead protection br to war, and poverty, and second -- that engagement and free trade hope political lead to peace, and prosperity. In this century, we learned anew that ideas have consequences. Technologies that transmit ideas in the blink of Smort an eye give people the power to surmount barricades, elude barbed wire and pull down walls designed to hold back the tide of truth. We live in a world transformed -- shrunken by swift travel and instant communication; drawn closer by common interests, In this century, we learned anew that ideas matter. Technologies that transmit volumes of information in the blink of an eye can liberate nations with astonishing X speed. Liberating armies cannot accomplish through force what liberation technologies can accomplish by appealing to people's imaginations and dreams. We live in a world transformed -- shrunken by swift travel and communication; drawn closer by common interests, ambitions and needs. As the two largest economies and as leaders of this world, the United States and Japan must face the challenge of building a new international order based on the rule of law, respect for human rights and democracy and open markets. The Cold War is over and a new era beckons. We must construct a new commonwealth of freedom -- and ensure that isolation and protectionism never victimize our peoples again. Today, I ask Japan to join with the United States in building this new world -- one enriched by free trade and a better robust competition; a world that will create a good life A for people everywhere. Our prosperity and yours are indivisible. American businesses cannot flourish in Asia unless the economies of Asia thrive and grow; Japan's growth needs American markets open and growing. Here in you nave a saying "The wina blows even in the depths of mountains # My friends, we can not escape our destiny as partners. We must light the way to a world of peace and prosperity for generations to come. The United States straddles two great oceans, the Atlantic and Pacific. We are an Atlantic nation, but we also are a Pacific nation. Our ties to the Asia-Pacific region grow daily; our two-way trade is now $310 billion B annually, one-third larger than that with Europe. In the last fifteen years, the number of Americans of Asian origin had quadrupled. These Americans, along with hundreds of thousands from China, Japan, Vietnam, Cambodia, Korea, and Thailand -- enrich our society. They strengthen our mutuality of interests. 1 America has fought three major wars in the last half-century in the Asia-Pacific theater. What happens here affects our fundamental economic, moral and political interests. The keystone of our continuing Asian engagement is our alliance with Japan. Rarely in history have two nations with such different historic and cultural roots nurtured such an enduring relationship. Our people bound by geography; bound by democracy; and we are bound by our deep economic ties; together, we can help ensure the prosperity and security of the region and the world. I can not imagine meeting the challenges ahead without U.S. -Japan cooperation, cooperation that we must deepen 1 worldwide. This is why today., Prime Minister Miyazawa and I have issued the "Tokyo Declaration" setting out the C basic principles and major aspects of our global partnership. Our renewed alliance will define the shape of the post-Cold War world. 3 more Laotians in the U.S. today than in the Laotian capital of Vientiane; more Filipinos in California than in Cebu. These Americans, along with hundreds of thousands from China, Japan, Vietnam, Cambodia, Korea, Thailand and Samoa -- enrich our society. They strengthen our bonds of kinship and trade. they America has fought three major wars in the last half-century in the Asia-Pacific theater. What happens here matters very much to us. But at the core of our continuing Asian engagement stands our alliance with Japan. Rarely in history have two nations with such different geographic and cultural roots nurtured such an enduring relationship. Our people are brothers and sisters in democracy; together, we can help ensure the prosperity and security of the region. More broadly, our association will define the shape of the post-Cold War world. four Consider the three key areas of our relationship. First, we must reinforce the U.S.-Japan security alliance. We enjoy a strong security link with Japan. Let us make the most efficient use of our defense resources by building greater coordination of our military 2 forces and by promoting the two-way flow of defense technology. Such cooperation will enhances our security, and builds even stronger political ties between us. D know the Persian Gulf spoused spirited debate here about topais global role. In the wake of the Persian Culf war, many nations have called upon Japan to share the burdens of world security. Let me to the condition effort in the Gulf. say first that the American people appreciate deeply the support your contribution you gave us during the Cult war We also understand that Japan no nation outside the Gulf region provided more financial support than did Japane D Japan's generous support for U.S. forces stationed here -it will soon amount to 73% of all non-salary costs of those forces is an important demonstration of sharing responsibilities. 4 has become a key player in the global order. Your foreign policy should reflect your larger responsibilities Third J 3 second, we must deepen our understanding of each other. For all of our interaction politically and economically, our people know very little of the other's history, traditions and language. We welcome the work of the Abe fund to expand exchanges and interactions -- intellectual, scientific and cultural. Thanks to it and programs like it, by the end of the century our two nations will have a much larger group of people who have lived in each other's country, speak each other's language and understand more fully how important we are to each other. Although more than 200,000 Asian students now study in American colleges and universities, more Americans must immerse themselves in Asian societies and cultures. Invoice fourth, and most important, we must work to broaden and expand our As the exchange of free people and ideas flows between our economic ties Through opening markets and reducing barriers to esevestment. nations, our economic relations have taken center stage We are now each other's largest overseas trading partner. Japan will sell about $90 billion worth of goods and services to the United States this year; we will sell more than $40 billion to Japan. prorly #50 Our economies -- the world's two largest and most technologically advanced -- have become increasingly intertwined. 3 This brings me to my third -- and most important - point. 4070 final face up to that threaten nu ulutions We must [acknowledge] the economic tensions between us and we must reduce those tensions now through opening markets and eleminating baniers to trude and investment. The Asia-Pacific region has become the world's most rapidly growing economic dynamo. We now conduct more trade with Asia In the attermatn UI to define its emerging role. As we emerged as a global 3 power earlier this century, our country went through a similarly agonizing debate. Indeed, the forces of 11 isolationism defeated President Wilson's own internationalist vision of the League of Nations after World War I. And such destructive forces are with us still. 3 W. Building a national consensus for an active global role can be a very difficult affair, particularly in a post-Cold war world where threats are unclear We are confident though, that given the broad convergence of U.S. and Japanese interests, internationalism will prevail. An active and engaged Japan is critical to the effectiveness of the post-Cold War system. The system does not work unless leading powers lead. This brings me to the second area of our relationship: bad foreign policy cooperation. We must fulfill the promise of our global partnership. Together we produce 40% of the world's GNP and 40% of all bilateral aid. We have the potential to marshall unrivaled resources for a better future -- if our foreign policies are well coordinated. Commonwealth 3 The upcoming conference on assistance to the former on dysdet Seviet republics is a crucial example of the importance of such coordination. The demise of the Soviet Union (3 (3) confronts us both with ominous dangers, but also historic opportunities. The help Japan and other Asians provide in the transformation of a totalitarian empire into market-oriented and democratic states is key to future Let me add that The peace and stability across the Eurasian continent. U.S. willcon time efforts the to support your On issues from Cambodia and Korea, reform in Mongolia and Central Europe, the Uruguay Round and Enterprise for Territories. C the Americas, to protecting the environment, we must engage together globally. Prime Minister Miyazawa and I 3 2 have outlined the areas for cooperation in the Global ction issued. Pratnerchin two-way trade now accounts for 5 mouthow 40% of our total than with any other region on earth. Our trans-Pacific trade, which now exceeds 300 billion dollars a year. The United States exports more to Singapore than to Italy or Spain; more to Malaysia than to the entire Soviet Union; and more to Indonesia than to all of Eastern Europe put together. We will not support efforts to carve our planet into trading blocs. We cannot afford it, and we must not allow it. Instead, we must ensure a strong, two-way economic relationship between Japan and the United States -- with our markets more open to new goods, and our industries more open to new competitive ideas. and an equal flow of technology on both sides. American businesses learned during the past decade that the old ways no longer work in our changing, dynamic international marketplace. Our companies have cut costs, improved quality and fostered innovation. As a result, our products sell in markets everywhere except including in Japan. But we can and must do better. We want to reduce the trade imbalance between us -- not through real gimmicks or artificial devices, but simply by gaining [complete] access to your markets. We want to create fair opportunities for traders and investors -- both buyers and sellers -- by removing the road blocks, both seen and unseen, to free and fair trade. American business doesn't need a hand-out and doesn't want one. Our companies just want a chance to compete fairly in markets around the world. Our government remains committed to free trade, and 6 we will reduce our own trade barriers, as our allies cut away theirs. The United States and Japan can light the way to a world of free trade by concluding the Structural Impediments Initiative. This agreement plays a pivotal role in our on-going efforts to improve market access and remove non-tariff barriers to foreign investment The United States and Japan also must lead the way to a successful conclusion for the Uruguay Round. Because of the benefits we derive from free trade, Japan and the United States bear a special responsibility for tackling the remaining difficult issues -- quickly and decisively. This is not a matter of charity: Free trade serves both our interests, and gives both NSCRT our nations an opportunity to grow stronger, to assert even greater leadership in the Post Cold War world. 4 for your pat further Improving our trade relations means one thing: opening your markets. Many sectors of the Japanese economy remain closed to 5 7 outside investment by complex and even unfair business practices These practices hurt American companies, but they also hurt Japanese consumers. I've never had one American say to me: "Mr. President, please raise prices in this country. " And I bet Japanese don't say that, either. Economic competition brings more consumer choices and lower prices. In fact, the Toys R Us that I visited in Kyoto offers prices thirty percent lower than its Japanese competition. That's good for us and that's good for you. Our two countries have embarked on a unique experiment F in interdependence called the Structural Impediments In it, Initiative. This process allows each to pinpoints the others barriers to competitiveness and commits each to 4 reduce them. We must reinvigorate this commitment to because market access The beneficiaries of our success in this effort will be businessmen and consumers on both sides of the Pacific. It means greater openness in many sectors of the Japanese economy still biased 5 ) against outside investment by complex and sometimes collusive business practices. 7 Many of our Japanese friends argue that the United States must improve its competitive fitness -- and they are right. We recognize that some of our bilateral trade imbalance stems from issues other than market access. Japan's products are competitive around the world because Japan has saved and invested at a rate double that of the United States. You have focused on applied research and development and new manufacturing technologies. Your companies have established the world's finest quality control systems. You have developed a highly educated labor force, and taken the long view to developing markets abroad. There is much for us to learn from you. We are taking steps to boost our competitiveness -- improving education, cutting taxes and regulations that hurt our economy; fighting the hidden tax of crime; stimulating innovation and risk; and recognizing companies that enhance productivity while improving product quality. I've brought with me a delegation of America's top business leaders, the first time in history that a U.S. President has done SO. Every one of them can tell you that despite the fact that our economy is in some trouble right now, America still can draw upon tremendous strengths. have Our basic research is still the best [basic] anywhere. We can boast of the world's finest universities. American technology remains on the cutting edge in such advanced fields as computers and biotechnology. Our society is diverse, We can and will increase our rate of savings and investment. We must continue to boost our manufacturing excellence. We must reduce our budget deficit. To stimulate innovation, risk and a longer-term business outlook, I want G investment credits, permanent R&D credits, and long-term 6 equity capital gains tax cuts. It is no accident that Japan does not tax capital gains. It is an important ingredient of competitiveness. And we must raise our educational standards. Americans understand that no nation will prosper long without a first-rate educational system. In recent years our primary and secondary educational system has not kept pace with the world. While Japanese children spend 240 hours a month (?) in the classroom ours spend far fewer, and too much time glued to the T.V. (Interesting data Can be found in H.Stevensor's Paper, Tony Snaw) Our America 2000 education plan is our strategy to mount a 6 revolution in education. It challenges citizens to set high (6 standards for their schools and encourages all Americans to join forces in increasing world-class schools. This is the path to competitiveness. The education achievements of Japan and others in the Asia-Pacific region can inspire us to help us move quickly down this path. This is why I've invited the countries of the Pacific Rim to send their education ministers to Washington for a conference next Spring to seek new ways to cooperate. Document No. 295/3155 9432 WHITE HOUSE STAFFING MEMORAND DATE: 12/26/91 ACTION/CONCURRENCE/COMMENT DUE BY: 3:00PM, FRIDAY, DEC. 27 PRESIDENTIAL ADDRESS: JAPANESE WELCOMING COMMITTEE HOTEL NEW OTANI SUBJECT: TOKYO, JAPAN THURSDAY, JANUARY 9, 1992 ACTION FYI ACTION FYI VICE PRESIDENT HORNER SKINNER MCCLURE SCOWCROFT PETERSMEYER DARMAN PORTER BRADY ROGICH BROMLEY SMITH CARD FINDLAY SNOW DEMAREST PORTER ROSE FITZWATER GRAY BOSKIN HOLIDAY REMARKS: Please provide comments on the attached directly to Tony Snow, Rm. 122, x2930, with a copy to this office NO LATER THAN 3:00PM, FRIDAY, DECEMBER 27. Thank you. RESPONSE: NSC concurs with changes as noted. for Mone Brent Scowcroft Sangth? PHILLIP D. BRADY Assistant to the President and Staff Secretary CC: Phillip Brady Ext. 2702 Grant / Grossman A:JAPAN Draft four 01 DEPRESIDENTIAL pl: 47 December 26, 1991 ADDRESS: JAPANESE WELCOMING COMMITTEE HOTEL NEW OTANI TOKYO, JAPAN THURSDAY, JANUARY 9, 1991 [Acknowledgements: Mr. Prime Minister; Members of the Diet; distinguished guests.] important Journey bat not S I come to Japan at the culmination of an historic journey, historic rare moment in history at a turning point in world events. The Soviet Union has menace vanished, and with it, the delusions of communism. Arabs and Israelis in the Middle East have set aside ancient hatreds in wrong order to pursue the ideal of peace. Totalitarianism's tyranny Japan I to relevent audion has died, and freedom's phoenix is spreading its wings [across in nations from Latin America to Eastern Europe Democracy has set Am down fragile roots even in such places as (tiny) Cambodia. A new respect for human rights is on The more Freedom was not reborn without pain. Its triumphs have been with? inscribed by blood and fire; its truths have been seared into our hardwork it has as tablished itself with startling bursting and aductions souls through [pain] and sacrifice, This Century teaches us two and accomplice reconstruction crucial lessons: First -- that protection and isolationism lead and despension protection ism, to war and poverty, and second -- that political engagement and free trade and hope lead to peace and prosperity. In this century, we learned anew that ideas have consequences. Technologies that transmit ideas in the blink of an eye give people the power to surmount barricades, elude barbed Smit wire and pull down walls designed to hold back the tide of truth. We live in a world transformed -- shrunken by swift travel and instant communication; drawn closer by common interests, In this century, we learned anew that ideas matter. Technologies that transmit volumes of information in the blink of an eye can liberate nations with astonishing speed. Liberating armies cannot accomplish through force what liberation technologies can accomplish by appealing to people's imaginations and dreams. We live in a world transformed -- shrunken by swift travel and communication; drawn closer by common interests, ambitions and needs. As the two largest economies and as leaders of this world, the United States and Japan must face the challenge of building a new international order based on the rule of law, respect for human rights and democracy and open markets. The Cold War is over and a new era beckons. We must construct a new commonwealth of freedom -- and ensure that isolation and protectionism never victimize our peoples again. Today, I ask Japan to join with the United States in building this new world -- one enriched by free trade and robust competition; a world that will create a good life for people everywhere. Our prosperity and yours are indivisible. American businesses cannot flourish in Asia unless the economies of Asia thrive and grow; Japan's growth needs American markets open and growing. Here in Japan, you nave a saying: WILL even in the depths of mountains." My friends, we can not escape our destiny as partners. We must light the way to a world of peace and prosperity for generations to come. The United States straddles two great oceans, the Atlantic and Pacific. We are an Atlantic nation, but we also are a Pacific nation. Our ties to the Asia-Pacific region grow daily; our two-way trade is now $310 billion annually, one-third larger than that with Europe. In the last fifteen years, the number of Americans of Asian origin had quadrupled. These Americans, along with hundreds of thousands from China, Japan, Vietnam, Cambodia, Korea, and Thailand -- enrich our society. They strengthen our mutuality of interests. America has fought three major wars in the last half-century in the Asia-Pacific theater. What happens here affects our fundamental economic, moral and political interests. The keystone of our continuing Asian engagement is our alliance with Japan. Rarely in history have two nations with such different historic and cultural roots nurtured such an enduring relationship. Our people bound by geography; bound by democracy; and we are bound by our deep economic ties; together, we can help ensure the prosperity and security of the region and the world. I can not imagine meeting the challenges ahead without U.S. Japan cooperation, cooperation that we must deepen 1 worldwide. This is why today., Prime Minister Miyazawa and I have issued the "Tokyo Declaration" setting out the basic principles and major aspects of our global partnership. Our renewed alliance will define the shape of the post-Cold War world. 3 more Laotians in the U.S. today than in the Laotian capital of Vientiane; more Filipinos in California than in Cebu. These Americans, along with hundreds of thousands from China, Japan, Vietnam, Cambodia, Korea, Thailand and Samoa -- enrich our society. They strengthen our bonds of kinship and trade. Street America has fought three major wars in the last half-century in the Asia-Pacific theater. What happens here matters very much to us. But at the core of our continuing Asian engagement stands our alliance with Japan. Rarely in history have two nations with such different geographic and cultural roots nurtured such an enduring relationship. Our people are brothers and sisters in democracy; together, we can help ensure the prosperity and security of the region. More broadly, our association will define the shape of the post-Cold War world. four Consider the three key areas of our relationship. First, we must reinforce the U.S.-Japan security alliance. We enjoy a strong security link with Japan. Let us make the most efficient use of our defense resources by building greater coordination of our military forces and by promoting the two-way 2 flow of defense technology. Such cooperation will enhances our security, and build even stronger political ties between us. I know the Persian Gulf spurred spirited debate here about In the wake of the Persian Gulf war, many nations have topais globul role. called upon Japan to share the burdens of world security. Let me your contribution say first that the American people appreciate deeply the support to the condition effort in the Gulf. you gave us during the Gulf War. We also understand that Japan no nation outside the Gulf region provided more financial support then did Japane Japan's generous support for U.S. forces stationed here - it will soon amount to 73% of all 2 non-salary costs of those forces -- is an important demonstration of sharing responsibilities. 4 has become a key player in the global order. Your foreign policy should reflect your larger responsibilities 3 Third Second, we must deepen our understanding of each other. For all of our interaction politically and economically, our people know very little of the other's history, traditions and language. We welcome the work of the Abe fund to expand exchanges and interactions -- intellectual, scientific and cultural. Thanks to it and programs like it, by the end of the century our two nations will have a much larger group of people who have lived in each other's country, speak each other's language and understand more fully how important we are to each other. Although more than 200,000 Asian students now study in American colleges and universities, more Americans must immerse themselves in Asian societies and cultures. Thank fourth, and most important, we must work to Graden and expand our As the exchange of free people and ideas flows between our economic ties Through opening markets and reducing barriers to investment. nations, our economic relations have taken center stage We are now each other's largest overseas trading partner. Japan will sell about $90 billion worth of goods and services to the United pearly #50 States this year; we will sell more than $40 billion to Japan. Our economies -- the world's two largest and most technologically advanced -- have become increasingly intertwined. This brings me to my third -- and most important final point. Face up to We must (acknowledge the economic tensions between us and we must that thereater an ulations reduce those tensions now through opening markets and eleminating basiers to trude and investment. The Asia-Pacific region has become the world's most rapidly growing economic dynamo. We now conduct more trade with Asia In the aftermath of the Gulf conflict, Japan has begun to define its emerging role. As we emerged as a global power earlier this century, our country went through a similarly agonizing debate. Indeed, the forces of isolationism defeated President Wilson's own internationalist vision of the League of Nations after World War I. And such destructive forces are with us still. 3 3 Building a national consensus for an active global role can be a very difficult affair, particularly in a post-Cold war world where threats are unclear. We are confident, though, that given the broad convergence of U.S. and Japanese interests, internationalism will prevail. An active and engaged Japan is critical to the effectiveness of the post-Cold War system. The system does not work unless leading powers lead. This brings me to the second area of our relationship: b2d foreign policy cooperation. We must fulfill the promise of our global partnership. Together we produce 40% of the world's GNP and 40% of all bilateral aid. We have the potential to marshall unrivaled resources for a better future -- if our foreign policies are well coordinated. Commonwealth of depedete The upcoming conference on assistance to the former 3 Soviet republics is a crucial example of the importance of such coordination. The demise of the Soviet Union 3 confronts us both with ominous dangers, but also historic opportunities. The help Japan and other Asians provide in the transformation of a totalitarian empire into market-oriented and democratic states is key to future peace and stability across the Eurasian continent. On issues from Cambodia and Korea, reform in Mongolia and Central Europe, the Uruguay Round and Enterprise for the Americas, to protecting the environment, we must 3 2 engage together globally. Prime Minister Miyazawa and I have outlined the areas for cooperation in the Global Partnership plan of action we have issued. two-way trade now accounts for 5 mouthern 40% four total than with any other region on earth. Our trans-Pacific trade, which now exceeds 300 billion dollars a year. The United States exports more to Singapore than to Italy or Spain; more to Malaysia than to the entire Soviet Union; and more to Indonesia than to all of Eastern Europe put together. We will not support efforts to carve our planet into trading blocs. We cannot afford it, and we must not allow it. Instead, we must ensure a strong, two-way economic relationship between Japan and the United States -- with our markets more open to new goods, and our industries more open to new competitive ideas and an equal flow of technology on both sides. American businesses learned during the past decade that the old ways no longer work in our changing, dynamic international marketplace. Our companies have cut costs, improved quality and fostered innovation. As a result, our products sell in markets everywhere -- except including in Japan. But we can and must do better. We want to reduce the trade imbalance between us -- not through real gimmicks or artificial devices, but simply by gaining [complete] access to your markets. We want to create fair opportunities for traders and investors -- both buyers and sellers -- by removing the road blocks, both seen and unseen, to free and fair trade. American business doesn't need a hand-out and doesn't want one. Our companies just want a chance to compete fairly in markets around the world. Our government remains committed to free trade, and 6 we will reduce our own trade barriers, as our allies cut away theirs. The United States and Japan can light the way to a world of free trade by concluding the Structural Impediments Initiative. This agreement plays a pivotal role in our on-going efforts to improve market access and remove non-tariff barriers to foreign investment. The United States and Japan also must lead the way to a successful conclusion for of the Uruguay Round. Because of the benefits we derive from free trade, Japan and the United States bear a special responsibility for tackling the remaining difficult issues -- quickly and decisively. This is not a matter of charity: Free trade serves both our interests, and gives both our nations an opportunity to grow stronger, to assert even INSURT greater leadership in the Post Cold War world. 4 for Improving pat further our trade relations means one thing: opening your markets. Many sectors of the Japanese economy remain closed to 5 V outside investment by complex and even unfair business practices. These practices hurt American companies, but they also hurt Japanese consumers. I've never had one American say to me: "Mr. President, please raise prices in this country." And I bet Japanese don't say that, either. Economic competition brings more consumer choices and lower prices. In fact, the Toys R Us that I visited in Kyoto offers prices thirty percent lower than its Japanese competition. That's good for us and that's good for you. Our two countries have embarked on a unique experiment in interdependence called the Structural Impediments Initiative. This process allows each to pinpoint the others barriers to competitiveness and commits each to 4 reduce them. We must reinvigorate this commitment to market access. The beneficiaries of our success in this effort will be businessmen and consumers on both sides of the Pacific. It means greater openness in many sectors of the Japanese economy still biased (5) 5 against outside investment by complex and sometimes collusive business practices. 7 Many of our Japanese friends argue that the United States must improve its competitive fitness -- and they are right. We recognize that some of our bilateral trade imbalance stems from issues other than market access. Japan's products are competitive around the world because Japan has saved and invested at a rate double that of the United States. You have focused on applied research and development and new manufacturing technologies. Your companies have established the world's finest quality control systems. You have developed a highly educated labor force, and taken the long view to developing markets abroad. There is much for us to learn from you. We are taking steps to boost our competitiveness -- improving education, cutting taxes and regulations that hurt our economy; fighting the hidden tax of crime; stimulating innovation and risk; and recognizing companies that enhance productivity while improving product quality. Insula I've brought with me a delegation of America's top business b leaders, the first time in history that a U.S. President has done so. Every one of them can tell you that despite the fact that our economy is in some trouble right now, America still can draw upon tremendous strengths. have Our basic research is still the best [basic] anywhere. We can boast of the world's finest universities. American technology remains on the cutting edge in such advanced fields as computers and biotechnology. Our society is the-most] diverse, We can and will increase our rate of savings and investment. We must continue to boost our manufacturing excellence. We must reduce our budget deficit. To stimulate innovation, risk and a longer-term business outlook, I want investment credits, permanent R&D credits, and long-term 6 equity capital gains tax cuts. It is no accident that Japan does not tax capital gains. It is an important ingredient of competitiveness. And we must raise our educational standards. Americans understand that no nation will prosper long without a first-rate educational system. In recent years our primary and secondary educational system has not kept pace with the world. While Japanese children spend 240 hours B month (7) in the classroom ours spend far fewer, and too much time glued to the T.V. (Interesting data Can be found in H -Steversor's Paper, Tony Snow) Our America 2000 education plan is our strategy to mount a revolution in education. It challenges citizens to set high (6) standards for their schools and encourages all Americans to join forces in increasing world-class schools. This is the path to competitiveness. The education achievements of Japan and others in the Asia-Pacific region can inspire us to help us move quickly down this path. This is why I've invited the countries of the Pacific Rim to send their education ministers to Washington for a conference next Spring to seek new ways to cooperate. 8 energetic, creative and talented in the world. It draws upon the strengths and insights of many cultures -- including yours. These businessmen will also tell you that they care about American jobs. They care about American exports. They know that the Asian-Pacific market offers enormous potential to American businesses that will accept the challenge of competition. Indeed, our export business is stronger than ever. We sold more exports last year than ever before. We enjoy a trade surplus with Europe. But our trade deficit with Japan is truly the exception. Let me say this: We've shown a) lot of forbearance. Now we want equal access. We want fair play The American economy and American jobs -- like the Japanese economy and Japanese jobs -- increasingly depend on free trade and open markets. Nearly half of our GNP growth between 1985 and 1990 was attributable to exports. New exports abroad mean new jobs at home -- good jobs -- 19,000 new jobs for every billion dollars in manufactured exports, and nearly 25,000 jobs for every billion dollars in agricultural exports. Every American knows that economic engagement can ensure a better quality of life for themselves and their families. Free and fair trade gives people access to high quality at low prices. It enables societies to benefit from the best other societies have to offer. It produces good jobs for everyone. I've met with men and women from all walks of life in almost every state of the Union and let me say this: the American people feel very, very strongly in the necessity of creating a level 9 playing field for everyone. We want our trading partners to give U.S. companies the same kind of opportunities that their firms enjoy in the United States. That's not just free trade -that's fair trade -- and it creates a basis for even greater freedom and greater prosperity for all. greater trade Free trade has propelled Japan toward world leadership. volume Open Free markets have launched Japan toward economic prominence. Japan now must join the ranks of world leadership in strengthening the very institutions that have made us great: free markets and free people. I challenge Japan to becomethe worlds most open market by the year 2000, Today marks a turning point for us in many ways. Together, we face the next millennium -- a new order for the ages, a new world of freedom and democracy. We stand as world powers, with the future presenting us with a decision. The United States has made its choice: against isolationism and in favor of engagement; against protectionism, and for free and fair trade. Today, I bid Japan to do the same -- because engagement and free trade are in your best interests. // Together, let us shape a new and open world, a world of vigorous competition and furious innovation; a world of greater peace, prosperity and hope than ever before. Let's join together for the sake of our workers, for the sake of world peace, and most importantly, for the sake of the generations to follow us. # # # MASTER Document No. 295/3155 WHITE HOUSE STAFFING MEMORANDUM 12/26/91 DATE: ACTION/CONCURRENCE/COMMENT DUE BY: 3:00PM, FRIDAY, DEC. 27 PRESIDENTIAL ADDRESS: JAPANESE WELCOMING COMMITTEE HOTEL NEW OTANI SUBJECT: TOKYO, JAPAN THURSDAY, JANUARY 9, 1992 ACTION FYI ACTION FYI - VICE PRESIDENT HORNER SKINNER MCCLURE SCOWCROFT PETERSMEYER DARMAN PORTER BRADY ROGICH N/C BROMLEY SMITH CARD FINDLAY SNOW DEMAREST PORTER ROSE FITZWATER GRAY BOSKIN HOLIDAY REMARKS: Please provide comments on the attached directly to Tony Snow, Rm. 122, x2930, with a copy to this office NO LATER THAN 3:00PM, FRIDAY, DECEMBER 27. Thank you. RESPONSE: PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 Grant / Grossman A:JAPAN Draft four 91 DEPRESIDENTIAL pl: 47 December 26, 1991 ADDRESS: JAPANESE WELCOMING COMMITTEE HOTEL NEW OTANI TOKYO, JAPAN THURSDAY, JANUARY 9, 1991 [Acknowledgements: Mr. Prime Minister; Members of the Diet; distinguished guests.] I come to Japan at the culmination of an historic important journey, (NSC) at a turning point in world history events. The Soviet Union has vanished, and with it, the delusions of communism. Arabs and tempered (Counsel) Israelis in the Middle East have set aside ancient hatreds in order to pursue the ideal of peace. Totalitarianism's tyranny has died, and freedom's phoenix is spreading its wings across Anew respect for human rights the is nations from Latin America to Eastern Europe. Democracy has set is struggling to set down 1 V down fragile roots even in such places as tiny Cambodia. (NSC) ) sweeping Freedom with was not reborn without pain. Its triumphs have been the globe inscribed by blood and fire; its truths have been seared into our taught (JAG) souls through pain and sacrifice. This Century teaches us two crucial lessons: First -- that protection and isolationism lead to war and poverty, and second -- that engagement and free trade political (NSC) lead to peace and prosperity. In this century, we learned anew that ideas have consequences. Technologies that transmit ideas in the blink of carry the human spirit over (JAG) an eye give people the power to surmount barricades 1 elude barbed and through wire and pull down walls designed to hold back the tide of truth. We live in a world transformed -- shrunken by swift travel and instant communication; drawn closer by common interests, 2 ambitions and needs; propelled by the strength of people's imaginations and dreams. As leaders of this world, the United States and Japan must anew international address based upon the rule of face the challenge of building economic freedom, individual law, respect open The Cold was is overand a newera beckons. for human liberty and free markets. v History demands that we honor the rts., and political + sacrifice of our fathers by constructing a new commonwealth of economic freedoms. (NSC) freedom -- and by ensuring that isolation and protectionism remain the sleeping ghosts of the past, not the waking nightmares of the future. Today, I ask you to help build a new world -- one enriched by free trade and robust competition; a world that will support good jobs for workers everywhere. us. exports and (Commerce) I come here to create opportunities for good American jobs, (Nsc) But let there be no misunderstanding -- American growth is in your best interest. And Asian growth is in ours. American businesses cannot flourish in Asia unless the economies of Asia thrive and grow. Here in Japan, you have a saying. "The lantern bearer should go ahead " My friends, we are the lantern-bearers of our age. We must light the way to a world of peace and prosperity for generations to come. Let us move forward, together. The United States straddles two great oceans, the Atlantic and Pacific. We are an Atlantic nation, but we also are a Pacific nation. Our ties to the Asia- Since 1975 Pacific region grow daily. In the last fifteen years, the number (NSC) of Americans of Southeast Asian origin has quadrupled. There are B (NSC) nearly (JAG) 3 more Laotians in the U.S. today than in the Laotian capital of many (JAF) Vientiane; more Filipinos in California than in Cebu. These Americans, along with hundreds of thousands from China, Japan, Vietnam, Cambodia, Korea, Thailand and Samoa -- enrich our society. They strengthen our bonds of kinship and (trade.) America has fought three major wars in the last half-century in the Asia-Pacific theater. What happens here matters very much to us. But at the core of our continuing Asian engagement stands our alliance with Japan. Rarely in history have two nations with such different historic (NSC) geographic and cultural roots nurtured such an enduring bound by democracy, and bound by our relationship. Our people are brothers and sisters in democracy; deep econ ties together together, we can help ensure the prosperity and security of the and the would. region More broadly, our association will define the shape of the post Cold War world. ( (NSC) four Consider the three key areas of our relationship. First, we must reinforce the U.S.-Japan security alliance. We enjoy a strong security link with Japan. Let us make the most efficient use of our defense resources by building greater coordination of our military forces and by promoting the two-way (NSC) flow of defense technology. D Such cooperation will enhanceSour security, and build even stronger political ties between us. I know the Persian Gulf spurred spirited debate here about Japan's In the wake of the Persian Gulf war, many nations have global role. called upon Japan to share the burdens of world security. Let me say first that the American people appreciate deeply the your support Contribution to the coalition effort in the Gulf. No nation outside the Gulf region you gave us during the Gulf War. We also understand that Japan provided more financial support than did Japan. 4 has become a key player in the global order. Your foreign policy should reflect your larger responsibilities E S (NSC) Third, Second, we must deepen our understanding of each other. For all of our interaction politically and economically, our people know very little of the other's history, traditions and language. We welcome the work of the Abe fund to expand exchanges and interactions -- intellectual, scientific and cultural. Thanks to it and programs like it, by the end of the century our two nations will have a much larger group of people who have lived in each other's country, speak each other's language and understand more fully how important we are to each other. Although more than 200,000 Asian students now study in American colleges and universities, more Americans must immerse themselves in Asian societies and cultures. As the exchange of free people and ideas flows between our nations, our economic relations have taken center stage. We are now each other's largest overseas trading partners Japan will sell about $90 billion worth of goods and services to the United States this year; we will sell more than $40 billion to Japan. nearly 50 (NSC) Our economies -- the world's two largest and most technologically advanced -- have become increasingly intertwined. fourther This brings me to my third -- and most important -- point. we must broaden Y expand the our econ ties. through pening maiket. And. We must acknowledge the economic tensions between us, and We must (NSC) also face up to that threaten our relations. reduce those tensions now. through opening markets * eliminating bariness to trade y investment. The Asia-Pacific region has become the world's most rapidly growing economic dynamo. We now conduct more trade with Asia to move forward the frontiers of technology and of the science And working together. we have the opportunity the responsibility that underlies it. (Bromley) - 5 than with any other region on earth. Our trans-Pacific trade now exceeds 300 billion dollars a year. The United States exports more to Singapore than to Italy or Spain; more to Malaysia than all of the countries in the former (Commerce) to the entire Soviet Union; and more to Indonesia than to all of Eastern Europe put together. We will not support efforts to NAFTA? carve our planet into trading blocs. We cannot afford it, and we must not allow it. Instead, we must ensure a strong, two-way economic relationship between Japan and the United States -- with our and services (Treasory) markets more open to new goods 1, and our industries more open to new competitive ideas, and an equal flow of technology on both sides (NSC) American businesses learned during the past decade that the (CEA) old ways no longer work in our changing dynamic international marketplace. Our companies have cut costs, improved quality and fostered innovation. As a result, our products sell in markets everywhere -- except in Japan. But we can and must do better. X (NSC) We want to reduce the trade imbalance between us -- not through gimmicks or artificial devices, but simply by gaining complete access to your markets. We want to create fair opportunities for traders and investors -- both buyers and sellers -- by removing the road blocks, both seen and unseen, to free and fair trade. American business doesn't need a hand-out and doesn't want one. Our companies just want a chance to compete fairly in markets around open markets (CEA) the world. Our government remains committed to free trade, and 6 we will reduce our own trade barriers, as our allies cut away theirs. lead The United States and Japan can light the way to a world of reinvigorating (Commerce USTR) free trade by concluding the Structural Impediments Initiative NSC cut These joint under takings play (..) commitments ") This agreement plays a pivotal role in our on-going efforts to says improve market access and remove non-tariff barriers to foreign investment and reduce trade imbalances. (Treasury) The United States and Japan also must lead the way to a of successful conclusion for the Uruguay Round. Because of the benefits we derive from free trade, Japan and the United States bear a special responsibility for tackling the remaining difficult issues -- quickly and decisively. This is not a matter of charity: Free trade serves both our interests, and gives both our nations an opportunity to grow stronger, to assert even greater leadership in the Post Cold War world. economic (CEA) further Improving our trade relations means one thing: opening your It means greater openness in (NSC) markets. Competition and (Treamy) Vsometimes collusive (NSC) Many sectors of the Japanese economy remain closed to (NSC) which still biassed against outside investment by complex and even unfair business practices. foreign goods and (CEA) These practices hurt American companies, but they also hurt Japanese consumers. I've never had one American say to me: "Mr. President, please raise prices in this country." And I bet Japanese don't say that, either. Economic competition brings more consumer choices and lower prices. In fact, the Toys 'R' Us that I visited upto (JAG) in Kyoto offers prices thirty percent lower than its Japanese competition. That's good for us and that's good for you. 7 Many of our Japanese friends argue that the United States (CEA) must improve its competitive fitness -- and they are right. We recognize that some of our bilateral trade imbalance stems from issues other than market access. Japan's products are competitive around the world because Japan has saved and invested at a rate double that of the United States. You have focused on applied research and development and new manufacturing technologies. Your companies have established the world's finest quality control systems. You have developed a highly educated labor force, and taken the long view to developing markets abroad. There is much for us to learn from you. We are taking steps to boost our competitiveness -- improving education, cutting taxes and regulations that hurt our economy; fighting the hidden tax of crime; stimulating innovation and risk; and recognizing companies that enhance productivity while improving product quality. G I've brought with me a delegation of America's top business leaders, the first time in history that a U.S. President has done so. Every one of them can tell you that despite the fact that our economy is in some trouble right now, America still can draw upon tremendous strengths. Our basic research is still the best basic anywhere. We (NSC) have can boast of the world's finest universities. American technology remains on the cutting edge in such advanced fields as computers and biotechnology. Our society is the most diverse, 8 energetic, creative and talented in the world. It draws upon the strengths and insights of many cultures -- including yours. These businessmen will also tell you that they care about American jobs. They care about American exports. They know that the Asian-Pacific market offers enormous potential to American businesses that will accept the challenge of competition. Indeed, our export business is stronger than ever. We sold more exports last year than ever before. We enjoy a trade the persistence x magnitude of (CEA) surplus with Europe. But "our trade deficit with Japan is truly concerning USTR the exception. Let me say this: We've shown a lot of forbearance. Now we want equal access. We want fair play. // too use NSC The American economy and American jobs -- like the Japanese this art (JAG, economy and Japanese jobs -- increasingly depend on free trade 1/3 of our GDP (Treasury) OR: about 1/3 of our economic and open markets. Nearly half of our GNP growth between 1985 and growth over 40% of our GDP growth between 86 - 90 was attrib to Merchandise exports. (CEA) 1990 was attributable to exports. New exports abroad mean new (USTR) over.stet 85 jobs at home -- good jobs 19,000 new jobs for every billion merchandise merchandise dollars in manufactured exports, and nearly 25,000 jobs for every billion dollars in agricultural exports. Every American knows that economic engagement can ensure a better quality of life for themselves and their families. Free and fair trade gives people access to high quality at low prices. It enables societies to benefit from the best other societies have to offer. It produces good jobs for everyone. I've met with men and women from all walks of life in almost believe every state of the Union and let me say this: the American people feel very, very strongly in the necessity of creating a level 9 playing field for everyone. We want our trading partners to give U.S. companies the same kind of opportunities that their firms enjoy in the United States. That's not just free trade that's fair trade -- and it creates a basis for even greater freedom and greater prosperity for all. Free trade has propelled Japan toward world leadership. open Free markets have launched Japan toward economic prominence. Japan now must join the ranks of world leadership in strengthening the very institutions that have made us great: free markets and free people. Today marks a turning point for us in many ways. Together, we face the next millennium -- a new order for the ages, a new world of freedom and democracy. We stand as world powers, with the future presenting us with a decision. The United States has made its choice: against isolationism and in favor of engagement; against protectionism, and for free and fair trade. Today, I bid Japan to do the same -- because engagement and free trade are in your best interests. // Together, let us shape a new and open world, a world of vigorous competition and furious innovation; a world of greater peace, prosperity and hope than ever before. Let's join together for the sake of our workers, for the sake of world peace, and most importantly, for the sake of the generations to follow us. # # # Jan. 8 / Administration of George Bush, 1992 Administration of George Bush, 1992 ra and I are honored to be here. I Text of Remarks at the Japanese d to join you in welcoming the sea- Welcoming Committee Luncheon in mit ideas in the blink of an eye car ne new year and to look ahead with Tokyo human spirit over barricades and t and understanding to the era of a January 9, 1992 barbed wire. They hurdle walls desig tury. hold back the truth. rime Minister, let me offer my very Thank you, Prime Minister Kaifu. Of We live in a world transformed, sh: congratulation on your election. I course, I want to start my remarks by extend- by swift travel and instant communi- / look forward to the work that lies ing to all of you the President's apologies for drawn closer by common interests and before us. As you remarked earlier not being present at lunch today. This meet- tions, propelled forward by people's in the United States and Japan share ing was to be a high point of his trip. I'm tions and dreams. e values and bear à heavy responsibil- sure you all know as well of his great respect As leaders of this transforming WOI world order. It ismy conviction that and warm feelings for former Prime Minister United States and Japan must help :ed States and Japan must move for- Kaifu. And it is with real regret that he was new international order based on the gether as partnersm not able to be here at lunchtime today. law, respect for human rights, and F hare a common vision for the post- As Prime Minister Kaify said, the Presi- and economic liberty. We must shape world, a world knitted together by dent is fine. I talked to his doctor just an enriched by open trade and robus' trading system with common rules hour ago. The doctor is a former classmate petition, a world that will create a bet possible free and equitable com- of mine at college. I know him very well, for people of all nations. so I can assure you the information is correct. The United States lies between tw. I know our people share a love of The doctor has told the President in very oceans, the Atlantic and the Pacific. so perhaps we should think of this strict terms to rest this morning. He will be a nation of the Atlantic by birth, but rld in this spirit. You called your resuming his schedule later today and, I'm to the Asia-Pacific region deepen dai! a team player, a description I would sure, will express to all of you his deep regret two-way trade is now $310 billion an ly to America. So let's compete in at not being able to join you at this wonderful one-third larger than that with Europ a of free and open trade. Open com- gathering. prosperity and yours are indivisible. and close cooperation will make both Mr. Prime Minister, members of the Diet, ican businesses cannot flourish in Asia ntries winners. Working together, no distinguished guests, it is a deep honor to the economies of Asia thrive and grow ions can do more to realize a new be here today. President Bush has asked me At the same time, Japan's growth eace and prosperity-than Japan and to make his remarks to you this afternoon. American markets open and growing ed States. Although there have been minor grammati- 1975, the number of Americans of As ince spoke of the need to create an cal changes in pronouns, this is the Presi- gin has nearly quadrupled. What h. y for the benefit of mankind and to dent's speech. These are his words. here is very important to us. And at t] e the unknown. So now, let us join We come to Japan at the culmination of of our continuing Asian engagement Let us forge-arglobal partnership a long and productive journey. Today we our alliance with Japan. onfront the challenges of the coming stand at a turning point in history. The cold At each stop during his visit to the For the sake of our children, for the war is over. The Soviet Union has vanished the President has stressed the challei their children, we must not let these and with it the delusions of communism. must face, addressing the new secu nities slip through our fingers. Centuries-old enemies in the Middle East quirements of our transforming wor' 'rime Minister, B hear you are fond are tempering ancient hatreds in pursuit of moting democracy, and generating hrase "large trees with deep roots." peace. Freedom's phoenix is rising from the economic growth and prosperity. Let mard the growing tree of our friend- ashes of tyranny and nations from Latin pand upon that by focusing on the that it may shelter all the generations America to Eastern Europe and from Cam- relationship that the United States bodia to Mongolia. with Japan. is friendship, I raise my glass. Freedom's rebirth was painful; its tri- Rarely in history have two nation umphs inscribed in blood; its truce seared such different and differing historic he dinner was held in the Small Din- by the fires of war and sacrifice. This century roots developed such an extraordina m at the Prime Minister's residence has taught us two crucial lessons: First, that tionship. Our people are bound by ). The President became ill at the din- isolationism and protectionism lead to war security, by democracy, and by our de [ he returned to the Akasaka Palace. and deprivation; and second, that political nomic ties. There are those who dc sh's remarks began at 8:55 p.m. Gen. engagement and open trade lead to peace future of this relationship. There are cowcroft, Assistant to the President and prosperity. for tension. Here in Japan you have a innal Security Affairs delivered the These lost few learned of Some rain must fall to prepare the organ Jush, 1992 Administration of George Bush, 1992 / Jan. 9 55 apanese Luncheon in mit ideas in the blink of an eye carry the er. And I must be frank in saying that there human spirit over barricades and through are problems in our economic relationship. barbed wire. They hurdle walls designed to Speaking not only for the United States but hold back the truth. for many developed countries, Japan's trade ister Kaifu. Of We live in a world transformed, shrunken surplus is too high, and its market access too marks by extend- by swift travel and instant communication, restricted. it's apologies for drawn closer by common interests and ambi- President Bush has come to Japan as a oday. This meet- tions, propelled forward by people's imagina- friend, seeking solutions to these concerns, of his trip. I'm tions and dreams. believing that the expansion of free and fair his great respect As leaders of this transforming world, the trade will do nothing but strengthen our rela- r Prime Minister United States and Japan must help build a tionship. We in the United States are con- gret that he was new international order based on the rule of fident about our capacity for partnership. me today. law, respect for human rights, and political Our areas of common interest are too impor- said, the Presi- and economic liberty. We must shape a world tant. Consider the four key areas of our joint .S doctor just an enriched by open trade and robust com- relationship. ormer classmate petition, a world that will create a better life First, the U.S.-Japan security alliance. We V him very well, for people of all nations. enjoy a strong security bond with Japan. Ja- nation is correct. The United States lies between two great pan's generous host-nation support for U.S. resident in very oceans, the Atlantic and the Pacific. We are forces stationed here is an important dem- ning. He will be a nation of the Atlantic by birth, but our ties onstration of shared responsibilities. Let us to the Asia-Pacific region deepen daily. Our make the most efficient use of our defense r today and, I'm u his deep regret two-way trade is now $310 billion annually, resources by building greater coordination of at this wonderful one-third larger than that with Europe. Our our military forces and by promoting the two- prosperity and yours are indivisible. Amer- µway flow of defense technology. Such co- abers of the Diet, ican businesses cannot flourish in Asia unless operation enhances our security and builds a deep honor to the economies of Asia thrive and grow. even stronger political ties between us. ush has asked me At the same time, Japan's growth needs The Gulf crisis sparked spirited debate u this afternoon. American markets open and growing. Since here about Japan's global role. That makes 1975, the number of Americans of Asian ori- it all the more profound that no nation out- minor grammati- this is the Presi- gin has nearly quadrupled. What happens side the Gulf region provided more generous words. here is very important to us. And at the core financial support than did Japan. The Amer- e culmination of of our continuing Asian engagement stands ican people and peace-loving people every- irney. Today we our alliance with Japan. where appreciate deeply your contribution, history. The cold At each stop during his visit to the region Japan's contribution, to the United Nations the President has stressed the challenges we coalition in the Gulf. ion has vanished of communism. must face, addressing the new security re- Even before the Gulf war, but especially the Middle East quirements of our transforming world, pro- in its aftermath, Japan has continued to de- eds in pursuit of moting democracy, and generating world fine its growing role in world affairs. An in- is rising from the economic growth and prosperity. Let me ex- creasingly active engaged and responsible tions from Latin pand upon that by focusing on the special Japan is critical to a forward-looking, post- e and from Cam- relationship that the United States enjoys cold-war community. That community will with Japan. not exist unless its leading powers lead. painful; its tri- Rarely in history have two nations with This brings us to the second area of our its truce seared such different and differing historic cultural relationship, our foreign policy cooperation. ifice. This century roots developed such an extraordinary rela- We must fulfill the bright promise of our essons: First, that tionship. Our people are bound by shared global partnership. Together, we produce 40 nism lead to war security, by democracy, and by our deep eco- percent of the world's gross national product. nomic ties. There are those who doubt the nd, that political We contribute together 40 percent of all bi- de lead to peace future of this relationship. There are reasons lateral aid. We have the ability to marshal for tension. Here in Japan you have a saying, unrivaled resources to build a better future again learned of "Some rain must fall to prepare the ground if our foreign policies are well coordinated. blogies that trans- for building." We can all see that without America has a responsibility here, but it progress we may be in for some rough weath- is a responsibility we share with Japan. The 56 Jan. 9 / Administration of George Bush, 1992 Administr. upcoming conference on assistance to the na- Although more than 200,000 Asian stu- work in O: tions of the former U.S.S.R., not the Com- dents now study in American colleges and place. Ou monwealth of Independent States, is a timely universities, more Americans must immerse proved qu example of such foreign policy coordination. themselves in Asian societies and cultures. As a resul: The collapse of the Soviet Union has also As the exchange of free people and ideas erywhere spurred questions within Japan about the du- flows between our nations and as the cold such acces rability of U.S.-Japan alliance. For decades, war ends in victory for our cause, our eco- We mu. this alliance has stood as the bulwark of nomic relations have taken center stage. This tween us, American-Japanese international coopera- brings me to the fourth and most important through g. tion. It is today every bit the linchpin of re- point. simply by gional stability and bilateral cooperation that If we are to expand our economic ties, we to your m wise men foresaw years ago. must face up to the economic tensions that portunitie The demise of the Soviet Union may threaten our relations. We must reduce those buyers ano confront us both with ominous dangers, but tensions now by opening markets and by both seen it also presents us an historic opportunity. eliminating barriers to trade and investment. trade. The leadership Japan and other Asian nations We are now each other's largest overseas America can provide to help transform a once-totali- trading partner. Japan will sell about $90 bil- and doesn tarian empire into market-oriented and lion worth of goods and services to the Unit- it is time democratic states helps guarantee the future ed States this year. We will sell nearly $50 a sense 01 peace and stability of our world. billion to Japan. you, we a. Let me add that with the changes in the Our economies, the world's two largest the Unite former Soviet Union, the United States sees and most technologically advanced, have be- Japan to re no reason why Japan should not regain the come irreversibly intertwined. Closing mar- responsibi Northern Territories. We share this goal, and kets and restricting trade have previously sake of th in whatever way we can, we will help you brought the world to the brink of economic Japan dep attain it. disorder. Isolation and protectionism must tion to tho We cannot imagine meeting the foreign remain the sleeping ghost of the past, not kets, it is policy challenges of our time without Japan the waking nightmares of the future. We but becaus as a partner. That is why today Prime Min- must reject these failed notions in the sure for us all. ister Miyazawa and President Bush will issue knowledge that expanding markets mean ex- Our CO. a document called the Tokyo Declaration, panding jobs and increasing prosperity for to compe setting out the basic principles and major both our countries. world. Ou challenges of our global partnership. By put- We must ensure a continued strong two- to open II ting into words the fundamentals of the two way economic relationship between Japan our own tr great partners, we hope to guide the way and the United States, with markets more the their 0' through the turbulent waters ahead. We open to new goods and services, manufactur- Our tw must be clear about our responsibilities and ers more open to new competitive ideas, the unique ex our requirements, for our renewed alliance financial services industry competing on a ence calle will do much to define the shape of the post- fair basis, and an equitable flow of technology tiative. In cold-war world. on both sides. other's ba. Third, we must deepen our understanding Our two countries share a special respon- commits t of each other. For all of our interaction politi- sibility to strengthen the world economy. vigorate t cally and economically, our peoples know too Yesterday the President and the Prime Min- whether f little of the other's history, traditions, and ister announced a strategy for world growth, or quality language. We welcome the work of the Cen- which commits both our countries to domes- ficiaries VI ter for Global Partnership in expanding ex- tic policies to stimulate growth. Expanded on both si changes and interactions, intellectual, sci- domestic demand in Japan translates into ad- Improv entific, and cultural. Thanks to such pro- ditional exports to Japan for American prod- further O' grams, our two nations will have an ever-in- ucts and jobs at home. And we are seeking greater op creasing number of people who have lived broad support for growth policies among nese econ in each other's country, speak each other's other industrialized countries as well. vestment. language, and understand more fully how im- Many American businesses learned during companie. George Bush, 1992 Administration of George Bush, 1992 / Jan. 9 57 00,000 Asian stu- work in our changing international market- Americans want the same things you want, rican colleges and place. Our companies have cut costs, im- a better quality of life for themselves and ans must immerse proved quality, and championed innovation. their families. Americans never say, "Please ties and cultures. As a result, our products sell in markets ev- raise our prices." And I bet the Japanese e people and ideas erywhere they have access. And candidly, don't either. Every worker is also a 'S and as the cold such access is still limited in Japan. consumer, and economic competition brings ir cause, our eco- We must reduce the trade imbalance be- them great choices and lower prices. In fact, 1 center stage. This tween us, not through managed trade, the Toys-R-Us store that the President vis- ad most important through gimmicks or artificial devices, but ited in Kyoto offers prices up to 30 percent simply by gaining true and welcome access lower than its Japanese competition. The economic ties, we to your markets. We want to create fair op- stunning success of the consumer's response omic tensions that portunities for traders and investors, both to its sister store north of Tokyo tells the must reduce those buyers and sellers, by removing the barriers same story. That's good for us, and it's good markets and by both seen and unseen to open an equitable for you. le and investment. trade. U.S. export business is stronger than ever. S largest overseas American business doesn't need a handout We sold more exports last year than ever be- sell about $90 bil- and doesn't want one. Some say that perhaps fore. We enjoy a trade surplus with Europe. rvices to the Unit- it is time to help the United States out of About one-third of our economic growth be- ill sell nearly $50 a sense of pity or compassion. Let me tell tween 1985 and 1990 was attributable to you, we are looking for no such help. What merchandise exports. To Japan, our manufac- orld's two largest the United States wants from Japan is for tured exports are up 70 percent since 1987, dvanced, have be- Japan to recognize its international economic a $20 billion increase that represents almost ned. Closing mar- responsibility for its own sake and for the half-a-million jobs. e have previously sake of the global marketplace upon which Still the overall trade deficit with Japan re- brink of economic Japan depends. When we express apprecia- mains large. And I might add, its persistence rotectionism must tion to those who seek to open Japanese mar- is truly the exception among our trading part- t of the past, not kets, it is not because we need a handout ners. Let me say this: We have waited a long f the future. We but because we know an open Japan is good time, but now the time has come for equal otions in the sure for us all. access; fairplay is in both our interests. markets mean ex- Our companies simply expect the chance As you know, the United States and Japan ing prosperity for to compete fairly in markets around the also face the urgent challenge of leading the world. Our Government remains committed way to a successful conclusion of the Uruguay inued strong two- to open markets, and we will further reduce round. Because of the benefits we each de- P between Japan our own trade barriers as our friends disman- rive from free trade, Japan and the United ith markets more tle their own. States bear special responsibility for tackling vices, manufactur- Our two countries have embarked on a the remaining difficult issues quickly and de- petitive ideas, the unique experiment in economic independ- cisively. The success of the round depends competing on a ence called the Structural Impediments Ini- on bold, farsighted leadership. We must lift flow of technology tiative. In this effort, each side pinpoints the our gaze to the glimmering horizon of broad- other's barriers to competitiveness, and each er prosperity and not worry over the stones e a special respon- commits to reduce them. We both must rein- in our immediate path. world economy. vigorate this commitment to market access, Yes, all of us have problems with portions d the Prime Min- whether for high quality American products of the so-called Dunkel draft, but we cannot for world growth, or quality American services. The bene- let the progress it represents slip through our ountries to domes- ficiaries will be the workers and consumers fingers. If we allow that draft to be picked growth. Expanded on both sides of the Pacific. apart by special interests, who wins? Not our translates into ad- Improving our economic relations includes people, not yours, not the less-developed na- or American prod- further opening your markets. It means tions. No one. id we are seeking greater openness in many sectors of the Japa- The GATT round is the world's best hope a policies among nese economy still biased against outside in- for expanding trade for all countries. Men es as well. vestment. These practices hurt American and women from all walks of life and all parts ses learned during companies, but they also hurt Japanese con- of America constantly tell the President this. Id ways no longer sumers. They believe very, very strongly in creating 58 Jan. 9 / Administration of George Bush, 1992 a level playing field for everyone. We want tell you that despite the fact that our econ- all our trading partners to give the United omy is facing some new tough times right States companies the same kind of opportu- now, America still draws upon tremendous nities that their firms enjoy in the United strengths. Our basic research is the best any- States. That's not just free trade; that's fair where. We have many of the world's finest trade. And it creates a basis for even greater universities. American technology remains freedom and greater prosperity for all. on the cutting edge in many advanced fields, Many of our Japanese friends argue that such as computers and biotechnology. the United States must improve its competi- Our society is energetic, creative, and tal- tiveness, and they're right. We recognize that ented. It has the added advantage of drawing some of our bilateral trade imbalance stems upon the strengths and insights of many cul- from causes other than restricted market ac- tures, including Japan's. cess. One reason for Japan's competitiveness The chief executive officers accompanying is because Japan has saved and invested at a rate double that of the United States. You the President will also tell you that they care have focused on applied research and devel- about American jobs. They care about Amer- opment and new manufacturing tech- ican exports; obviously, so does the Presi- dent. We know that the Asian-Pacific market nologies. Your companies have established fine quality control systems. You have devel- offers enormous potential to those American oped a highly educated labor force and have businesses that will accept the challenge of taken the long view to develop markets competition. That same competition has pro- abroad. pelled Japan toward world leadership. Open There is much for us to learn from you. markets around the world has provided Japan We are taking steps to boost our competitive- with economic prominence. Japan must now ness. We can and will increase our rate of join the ranks of world leadership in strength- savings and investment. We will continue to ening free markets and freedom. boost our manufacturing excellence. We will Finally, let me leave with you a message reduce the budget deficit. To stimulate inno- that the President wished to give directly to vation, risk, and longer-term business out- the people of Japan. And I quote: look, the President is pushing for investment The American people are your friends. incentives, R&D credits, and capital gain tax Friendship must be built upon three pillars: cuts. In America, cutting capital gains is po- fairness, trust, and respect. We expect noth- litically extremely difficult. It would be easier ing less, and we ask for nothing more. Today if our politicians saw the positive effect on marks a turning point for us in many ways. Japan's competitiveness due to low capital Together, we face the next millennium. A gains rates. And America must raise its educational new order for the ages, a new world of free- standards. Our America 2000 education strat- dom and democracy. We stand as the world's egy will fuel a revolution for better quality powers with the future presenting us with a decision. The United States has made its schools. This is another path to competitive- ness. The education achievements of Japan choice against isolationism and in favor of en- and others in the Asia-Pacific region inspire gagement, against protectionism and for ex- us. That is why President Bush has invited panding trade. Today, we bid Japan to do the countries of the Pacific Rim to send their the same because engagement and open education ministers to Washington for a con- trade are in your best interest. ference this spring to seek new ways to co- Together, let us shape a new and open operate and to learn from each other's ac- world, a world of vigorous competition and complishments. dazzling innovation. Let us build a world of With the President today, traveling with greater prosperity and peace than ever be- him, is a delegation of America's top business fore. If not for the sake of ourselves, then leaders. They've come to explore new busi- for the sake of our children. This is the finest ness opportunities in all the nations the legacy that we could bequeath to them. President has visited. Every one of them can Thank you very much. CONFIDENTIAL DECL:OADR SPEECH TO JAPANESE AND AMERICAN POLITICAL/BUSINESS LEADERS AT LUNCHEON HOSTED BY OFFICIAL WELCOMING COMMITTEE SCENESETTER PURPOSE To give a major policy speech setting out your vision of the U.S.-Japan relationship, emphasizing the importance we attach to our bilateral relationship, to the need for a more equitable economic relationship, and to the opportunities facing the global partnership. THE SETTING The official welcoming committee, chaired by former Prime Minister Kaifu, will be hosting a luncheon for you in the Crystal Room at the Akasaka Prince Hotel, a large, relatively new, luxury-class hotel in close proximity to the Akasaka Detached Palace. There will be between 500-600 guests, including the cream of the political, business, academic and cultural communities in Tokyo and approximately 80 Americans from embassy, military and business circles. While the audience will include distinguished Japanese men and women, spouses will not be invited in keeping with customary Japanese practice. This will be the premier public event of the visit, and there will be extensive media coverage. The speech will be widely viewed and read in Japan, and will help set the tone of the relationship through the 1990's. CONFIDENTIAL DECLASSIFIED By Department of State Guidelines, July 21, 1997 It NARA, Date 08/30/23 SCENESETTER: SPEECH AT OFFICIAL WELCOMING COMMITTEE LUNCH FOR JAPANESE AND AMERICAN POLITICAL/BUSINESS LEADERS -- JANUARY 9 (12:30-14:00) LOCATION: CRYSTAL ROOM, AKASAKA PRINCE HOTEL Draft: EAP/J:JFScot SEJPOL 8590 11/26/91 Clearance: EAP:RHSolomon EAP: DAnderson 3100pm EAP/J: RDeming EAP/P: EYamauchi P:MMcMillion C:RWilson for S/P : LKeene E:WWhyman