Politic-Economic-Society-Tech

US backs Japanese economic plan, leaders to meet 

WASHINGTON: The United States is prepared to support a Japanese economic reform plan that is designed over time to end a decade of stagnation, a senior US official said on the eve of a Japanese-American summit. 

President George W Bush and Japanese Prime Minister Junichiro Koizumi planned to discuss economic as well as security and environmental issues Saturday at the Camp David, Maryland, presidential retreat. 

Japan and the United States have a long list of potentially divisive issues before them, but there is a strong disposition by the Bush team to make an all-out effort to reinforce ties after what it perceives as Clinton-era neglect. 

The United States "would be very supportive" of Koizumi's economic reform plan, Larry Lindsay, the president's chief economic adviser, told reporters Friday. "It can only be in America's long-run interest to have the Japanese economy start to grow again." 

The endorsement came even though it is widely expected that Koizumi's program, which includes repair of Japan's problem-plagued banking system, could set in motion an increase in Japanese exports to the United States at a time when American companies are seeking relief from imports because of an economic downturn here. 

The tenor of Saturday's meeting may be affected by a rape case in Okinawa on Friday that a witness said could have involved an American serviceman. Koizumi declined to discuss the crime until the investigation was complete. 

There has been strong local resentment on the Japanese island over the American military presence, partly because of past misbehaviour, including rapes, by American military personnel. 

The choice of Camp David as the venue for the summit was a signal to the Japanese of the importance the United States attaches to its ties with Japan. 

Deputy Secretary of State Richard Armitage said Thursday that selection was "very noteworthy." He said it was the first time a Japanese prime minister had been invited to the mountain retreat since the Reagan administration. 

Armitage is one of a number of administration officials who give US relations with Japan the highest priority. 

Bush and Koizumi were also expected to talk about environmental issues. The Japanese leader, who has been in office for two months, said Friday he will urge the United States to adhere to the Kyoto climate treaty, which calls for reduced emissions of heat-trapping gases believed to be warming Earth's atmosphere. 

Bush has rejected the Kyoto pact, calling it flawed and unfair to US companies. 

During their talks, Bush was prepared to make his case for deployment of a missile defense system. Koizumi has declined comment on the issue except to express understanding for the American position. 

Koizumi was expected to air his thoughts on the possibility of an expanded international role for Japan on security issues. That role is sharply circumscribed by constitutional limits imposed in the aftermath of World War II, but there has been growing debate on the subject in Japan in recent months. (AP)

source: The Associated Press, 01 Jul 2001