Visit of Prime Minister Ohira of Japan Joint Communiqué.

PRODUCTIVE PARTNERSHIP FOR THE 1980'S

MAY 2, 1979

1. At the invitation of the Government of the United States, Prime Minister Ohira paid an official visit to the United States between April 30 and May 6, 1979. President Carter and Prime Minister Ohira met on May 2 in Washington to review the current state of U.S.-Japan relations and discuss regional and global cooperation, with a view to laying a foundation for productive partnership between the two countries for the 1980's based on their shared political and economic ideals and reflecting their responsibilities in world affairs. The discussions were held in an informal and cordial atmosphere consistent with the close friendship between the two countries. The President and the Prime Minister deepened their relationship of mutual trust and agreed to maintain close contact. The Prime Minister reconfirmed the standing invitation by the Government of Japan to President and Mrs. Carter to pay a state visit to Japan and invited them to visit in late June just before the Tokyo Summit. President and Mrs. Carter accepted with pleasure.

SECURITY RELATIONS

2. The President and the Prime Minister reaffirmed that the friendly and cooperative relationship between the United States and Japan, including the Treaty of Mutual Cooperation and Security between Japan and the United States of America, has been and will remain the cornerstone of peace and stability in Asia. The security relationship between the two countries has never been so strong and mutually advantageous as at present. This is exemplified by such significant recent developments as the adoption last year of the Guidelines for Japan-U.S. Defense Cooperation under the Security Treaty, increased procurement 'by Japan of defense equipment from the United States which will contribute to the increase of Japan's self-defense capability, and Japanese initiatives to increase financial support for the stationing of United States forces in Japan. The President stated that in coming years the United States will maintain and improve the quality of its present military capabilities in East Asia. The Prime Minister stated that Japan will continue its efforts to improve the quality of its self-defense capabilities, while maintaining effective working security arrangements with the United States as the foundation of its defense policy.

INTERNATIONAL RELATIONS

3. The President and the Prime Minister agreed that the United States and Japan share many political, economic and other interests in Asia and other parts of the world. Cooperation and consultation between the two countries concerning issues in these areas have grown over the years, become closer than ever in recent months, and will deepen further in the 1980's.

4. The President and the Prime Minister agreed that the recent developments in relations between Japan and the People's Republic of China and the establishment of U.S.-PRC diplomatic relations are major contributions to long-term stability in Asia. Both the United States and Japan seek a constructive relationship with China and will pursue this course in harmony with one another. The growth of such relations with China will hamper neither the United States nor Japan from continuing to develop good relations with other countries.

5. The President and the Prime Minister noted that the maintenance of balanced, cooperative relations with the Soviet Union will continue to be important to both the United States and Japan. The President stated that the United States is working to complete a SALT II agreement with a view to increasing strategic stability and security, and the Prime Minister stated that Japan supports this effort. Each side stated that it will continue to seek development of friendly and mutually beneficial relations with the Soviet Union.

6. The President and the Prime Minister reaffirmed that the maintenance of peace and stability on the Korean Peninsula is important for peace and security in East Asia, including Japan. The United States is firmly committed to the security of the Republic of Korea. Its policy toward future ground force withdrawals from Korea will be developed in a manner consistent with the maintenance of peace and stability on the Peninsula. The United States and Japan will cooperate to reduce tension on the Peninsula and will continue efforts to foster an international environment conducive to this purpose. Progress in the dialogue between the South and the North is indispensable to this process. The United States and Japan welcome the recent efforts to resume the dialogue and hope that these efforts will be fruitful.

7. The President and the Prime Minister noted that the United States and Japan have a profound interest in the peace and stability of Southeast Asia and are impressed by the vitality of ASEAN and its commitment to economic and social development. Both governments will continue cooperation and assistance in support of the efforts of the ASEAN countries toward regional solidarity and development.

8. The President and the Prime Minister expressed their concern about the recent increased tension in Indochina brought about in particular by the continued armed conflicts in Cambodia involving foreign troops and the recent fighting between China and Vietnam. The United States and Japan will make utmost efforts to reduce tension in this area and seek establishment of a durable peace based on the principles of respect for the sovereignty, territorial integrity and independence of all nations. The President and the Prime Minister expressed their concern over use of facilities in Vietnam by foreign forces.

9. The President and the Prime Minister noted that the outflow of Indochinese refugees is a cause of instability and a source of great humanitarian concern in the Asian-Pacific region that must be dealt with urgently. The President stated that the United States is accepting 7,000 refugees per month from Indochina for permanent resettlement in the United States and will continue its other major efforts to deal with this tragic problem. The Prime Minister stated that Japan has set a target number for the resettlement of displaced persons and eased conditions for permanent resettlement. The Prime Minister furl:her stated that Japan will continue to expand its cooperation and financial support for the United Nations High Commissioner for Refugees (UNHCR). The United States and Japan welcome the ASEAN initiative to create a refugee processing center, and both governments will make substantial contributions to that project, together with other countries, as it materializes.

10. The President and the Prime Minister agreed that peace and stability in the Middle East and the Gulf area are very important to the well-being of the peoples of the region as well as the world as a whole. The Prime Minister stated that Japan will actively continue and expand its cooperation with the peoples of the area in their endeavors toward a better future. The President and the Prime Minister agreed that a comprehensive Middle East peace should be brought about in full accordance with all the principles of United Nations Security Council Resolution 242 and through the recognition of and respect for the legitimate rights of the Palestinian people. To this end, utmost efforts should be made to promote the peace process subsequent to the signature of the Peace Treaty between Egypt and Israel.

ECONOMIC RELATIONS

11. The President and the Prime Minister agreed that the time has come for a more constructive approach to U.S.-Japan economic relations. They reached a clear understanding about the basic policies that each will follow over the next several years to produce a more harmonious pattern of international trade and payments. They agreed on a framework and procedure for continuing bilateral discussions. They recognized that such discussions will focus more on overall trade and current account trends than on specific actions to shape these trends; these actions are the national responsibility of each government.

12. The President and the Prime Minister stressed the very strong economic interests which link the United States and Japan. More than ever before, the two countries' welfare and futures are intertwined. Joint action to establish a new and stronger basis for economic cooperation will enhance the well-being of their peoples and promote widening trade. It will make it possible to remove contentious bilateral economic issues from the forefront of their relations and to mount cooperative efforts to resolve problems common to their societies, while ensuring a sustained, mutually productive relationship among their peoples.

13. For these reasons, the President and the Prime Minister agreed on a common approach, which will contribute to a stable pattern of international payments. They recognized that the 1978 current account surplus of Japan and the 1978 current account deficit of the United States were not appropriate in existing international circumstances. Recent actions by both governments, together with earlier changes in exchange .rates, have led to a significant reduction in their payments imbalances during the last few months. They agreed that appropriate action should be taken to ensure progress, and to sustain it.

14. To this end, the Prime Minister affirmed that it is the policy of Japan to continue:

—to encourage a shift to greater reliance on rising domestic demand to sustain Japan's economic growth, and

—to open Japan's markets to foreign goods, particularly manufactured goods.

15. In following these policies, it is the objective of Japan to promote a continued reduction in its current account surplus, until a position consistent with a balanced and sustainable pattern of international trade and payments has been achieved.

16. The United States will pursue a broad range of policies to reduce the U.S. rate of inflation, to restrain oil imports, and to promote U.S. exports. In following these policies, it is the objective of the United States to promote a continued reduction in its current account deficit, until a position consistent with a balanced and sustainable pattern of international trade and payments has been achieved.

17. Accomplishment of these goals will require several years. The present U.S.-Japan subcabinet group, composed of officials from both governments, will examine developments and results at periodic intervals.

18. A small group of distinguished persons drawn from private life will also be established, and will submit to the President and the Prime Minister recommendations concerning actions that the group considers would help to maintain a healthy bilateral economic relationship between the United States and Japan.

19. In reaching this understanding about economic relations between the United States and Japan, the President and the Prime Minister further noted that:

—Free and expanding trade is necessary for the development of the world economy; successful conclusion of the Tokyo Round of Multilateral Trade Negotiations is a significant step forward. It is essential to continue to reject protectionism, and to proceed with domestic measures to implement the results of the Tokyo Round negotiations as quickly as possible.

—The two countries will work with others at the Summit meeting scheduled for Tokyo in June to ensure that this meeting makes a substantial contribution to a healthier world economy.

—Bilateral and multilateral cooperation among industrial nations to improve the world energy outlook has become even more important in recent years. It is imperative that the industrial nations, including the United States and Japan, increase energy production, enhance the development of alternative energy sources, and implement fully the agreement on energy conservation reached by the International Energy Agency on March 2. The signing of the bilateral U.S.-Japan Agreement on Cooperation in Research and Development in Energy and Related Fields represents a major contribution to these objectives. The two governments will study seriously the prospects for cooperative efforts in other areas of basic and applied research.

—To meet the increasing demand for energy, there is an urgent need to promote further peaceful use of nuclear energy, consistent with non-proliferation and the requirements of safety and environmental protection. They agreed to expand joint research to enhance nuclear reactor safety and reliability. The Prime Minister stressed that, while sharing fully with the President a common concern over the danger of nuclear proliferation, for Japan nuclear energy is the most reliable alternative to oil in the short and medium term. The President and the Prime Minister agreed that the United States and Japan, in full cooperation, should continue to pursue the policies of nuclear non-proliferation, while avoiding undue restrictions on necessary and economically justified nuclear development programs. The President and the Prime Minister took special notice of the technical studies in progress in the International Nuclear Fuel Cycle Evaluation (INFCE) and expressed their strong hope that these technical studies will lead to satisfactory results.

—The United States and Japan should improve their official development assistance to developing countries. It is particularly important for them to strengthen aid in the field of human resource development and to strengthen support of research and development in such areas as health, food, and energy. The two countries will explore, through bilateral discussions and consultation with .developing countries, how to promote cooperation in technical assistance and in research and development in these areas.

—Japan, which has been the most important single customer for American agricultural exports, and the United States, which has been Japan's most important single supplier, will cooperate closely to ensure that their mutually beneficial agricultural trade meets Japan's import needs. Relevant authorities of the Governments of the United States and Japan will periodically exchange information and meet to consult, as appropriate, on the supply and demand situation of agricultural products that figure in trade between the United States and Japan.

CULTURAL AND EDUCATION EXCHANGE

20. The President and the Prime Minister noted with satisfaction that cooperation and exchanges in the fields of culture and education are flourishing and are of major importance in deepening mutual understanding and friendship between the peoples of the United States and Japan. Both governments will seek to enhance these activities and will jointly fund an expanded Fulbright Program of educational exchange. The Prime Minister stated that the Government of Japan will make a donation to help pay the cost of construction of new headquarters for the Asia Society in New York, and that it intends to make financial contributions for the construction of a new Oriental art gallery of the Smithsonian Institution and a Japanese gallery of the New York Metropolitan Museum of Art and for the establishment of a fund for international energy policy research at the Massachusetts Institute of Technology. The President expressed his appreciation.