Japanese Prime Minister on Clinton, the Trade Deficit and Managed Trade

Prime Minister, we thank you for coming. Pleased to have you with us.

Now, Prime Minister, you had a meeting yesterday with President Clinton

and the reports coming out afterward were that neither of you accomplished a great deal.

How would you put it?

Well, the primary purpose of my coming here is to get acquainted, to know better, with President Clinton

and I'm satisfied that I've been able to establish a trust and friendship that's most important to me.

We did talk on trade matters, other matters as well, but I think we've been able to basically agree

in what we should do, not immediately, not in a quick fix, but over a period of time.

Last year, a trade imbalance of about $40 to $45, $49 billion between our two countries.

The administration's position seems to be that's bad and it's your fault.

Is it bad and whose fault is it?

First, it's bad. I think the evidence is that I myself am as embarrassed as your government, your president.

We are all in an embarrassing situation.

But it means we're buying lots of products and goods and services that you make, more than we're selling to you.

Why should either side be embarrassed by that?

Unless there is illicit protectionism involved.

Yeah, so that the blame perhaps is not the right word to me.

We're selling to the United States, we're buying from Japan.

Provided that there is any unfair or irregular transactions, then I think blame perhaps is not the right word.

Although, economically speaking, this kind of lopsided balance cannot possibly last, or should not perhaps last for many years.

You have ruled out as impermissible two particular approaches to changing this.

One is managed trade, and the other is unilateral actions by one side or the other.

Let's take first managed trade.

The administration points as a great success to the semiconductor agreement whereby Japan agreed that 20% of its semiconductor market would go to foreign firms.

We think the administration thinks that's a success, you think it's not the way to go. Is that true?

Well, I'm glad that President Clinton is not for quick fix like managed trade.