[Title] Prime Minister Yasuhiro Nakasone's Remarks Folowing Discussions With President Ronald Reagan

President Reagan and I met in a relaxed atmosphere over the weekend. The President and I share the views that we should work together to send throughout the Tokyo summit a message of a bright prospect for and confidence in the future to the peoples of the world - the developed and developing alike. We reaffirmed the importance of promoting world peace and disarmament, and of the U.S.-Soviet summit in this regard, and the necessity of promoting the new round of multilateral trade negotiations for the furtherance of the free trading system. The President and I had a frank exchange of views on economic issues between our two countries.

Upon hearing once again the President's strong determination to continue his resolute fight against protectionism, I expressed my firm support to him. I also discussed with him the role to be played by Japan to the same end. Japan upholds the principle of free trade. I talked with the President about these steps we have taken to improve Japan's market access in the past years and told him that Japan will continue its efforts to this end. The President and I share the recognition that a change which has taken place in the yen-dollar exchange rates will contribute to the adjustment of the trade relations between Japan and the United States. I told the President that Japan is determined to work at its national policy goal toward steadily reducing the current account imbalance to one consistent with international harmony. To this end, I believe that Japan must tackle the epoch-making task of structural adjustment and transform its economic structure into one dependent on domestic demand rather than exports leading to a significant increase in imports, particularly of manufactured products. Recently, my private advisory group produced a report containing many variable recommendations in this regard. In order to translate the recommendations into policies, the Government will set up a promotion headquarters which will formulate a work schedule very shortly.

Structural adjustment is no easy task in any country. But Japan must effect an historic turn, and I am determined to accept that challenge. The President wholeheartedly welcomed this approach. At the same time, I hope that other countries will also deal with their own difficult problems through structural adjustment. Better convergence on policies among the nations concerned will be a key to revitalization of the world economy. The President and I welcomed the agreement reached yesterday to hold the bilateral dialog of higher shelves on structural problems.

I pay my respect to the President for his strong determination to work towards more stable East-West relations and substantial reduction of nuclear weapons and strongly hope that the momentum for U.S.-Soviet dialog spurred by a summit meeting between the two leaders last November will move forward steadily. The President and I reaffirm the importance of maintaining close communication and coordination among the countries of the free world. In this connection, I told the President that I highly value his efforts toward the total elimination of INF on a global basis with adequate consideration to the Asian region.

In our discussions on regional issues, the President and I reaffirmed the need for Japan and the United States to further cooperate for the development and stability of the Philippines and their President Aquino, and for us each to contribute to the stability of Central America and other countries, and to the improvement of economic situations and easing of the debt burden of the European countries. I expressed to the President my appreciation for the fact that the defense relationship between Japan and the United States is now better than ever before and told him that Japan intends to proceed further with its efforts on its own initiative to improve its defense capabilities, together with further strengthening the credibility of the Japan-U.S. security arrangements.

Mr. President, I am very happy to have been able at your kind invitation to come to meet you in spring green of Camp David, to reaffirm my unshakable friendship with you. Today the cooperative relationship between Japan and the United States is expanding its truly global dimensions and is ever growing in importance. I am convinced that we can overcome whatever obstacles may stand in our way and make great contributions to peace and prosperity of all the peoples of the world if our two peoples trust each other and make the best possible use of the vigor of each.

Thank you.