Sat, 23 Nov 1996

Japan, U.S. to boost relations in APEC

MANILA (UPI): The Asia Pacific Economic Cooperation summit will be the backdrop of bilateral talks between U.S. President Bill Clinton and Japanese Prime Minister Ryutaro Hashimoto aimed at reinforcing ties between the two countries, an official said late Thursday.

"Both leaders are expected to re-affirm the healthy development of bilateral relations between the two countries.

Both believe Japan and the United States have the most important bilateral relationship in the world," said Hiroshi Hashimoto, spokesman of the Japanese prime minister.

Both Clinton and Hashimoto are expected in Manila on Nov. 24, one day before a summit of leaders of APEC's 18-member economies.

The leaders are expected to approve recommendations of senior officials and ministers on details on how to eliminate trade and investment barriers in the region.

Hashimoto said the leaders' bilateral talks are expected to "finalize the issue of American bases in Okinawa," the presence of which has been strongly opposed by residents of the island especially after two U.S. servicemen were accused of raping a Japanese teenager in 1995.

"The two gentlemen will exchange views on this and the final report will be completed at the end of the month," Hashimoto said.

Hashimoto said the two leaders will also "discuss, but not necessarily negotiate" on the United States' desire for Japan to open up its insurance and aviation industries.

In 1994, relations between the United States and Japan were strained due to Tokyo's reluctance to open its car market to American brands. But relations have improved since then and just this year, the United States filed a case in the World Trade Organization against Indonesia as it closed its market to Japanese cars in a bid to support local manufacturers.

"There used to be this so-called trade friction. It does not mean we will not have other trade issues in the future," Hashimoto said. "Fortunately, we could solve these issues separately rather that politicizing them because the United States and Japan are now enjoying good relations."

Other members of APEC are Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Malaysia, Mexico, New Zealand, Papua New Guinea, the Philippines, Singapore, South Korea, Taiwan, Thailand and the United States.