[Title] Partnership For Security And Prosperity

President George W. Bush and Prime Minister Junichiro Koizumi met today at Camp David to reaffirm the partnership between the United States and Japan based on shared values, mutual trust, and friendship.

COOPERATION FOR PEACE AND STABILITY

Welcoming the fiftieth anniversary of the U.S. -Japan security relationship, the President and Prime Minister reaffirmed that the U.S. -Japan alliance is the cornerstone of peace and stability in the Asia Pacific region. The two leaders agreed on the importance of strengthening strategic dialogue, and decided to intensify consultations on the Asia Pacific region and other areas of the world. The president and Prime Minister emphasized the importance of encouraging China's constructive role in the international community and early accession to the WTO, working with the Republic of Korea to achieve peace on the Korean Peninsula, furthering non-proliferation efforts around the globe, and promoting United Nations Security Council reform and obtaining for Japan a permanent seat on the Security Council.

The President and Prime Minister decided to intensify consultations at various levels on further steps in security cooperation, building on continuing implementation of the Defense Guidelines. The two leaders noted that these consultations will focus on an assessment of the regional security environment, and areas such as force structure and force posture, security strategies, bilateral roles and missions during contingencies, and cooperation in peace keeping. The two leaders reaffirmed that forward U.S. presence is critical to regional stability, and the President thanked the Prime Minister for Japan's host -nation support. They agreed on the importance of working on issues related to U.S. forces in Japan, such as the steady implementation of the SACO process to reduce the burden on the people of Okinawa, and thereby strengthen the U.S. -Japan alliance. Recognizing the growing threat from the proliferation of weapons of mass destruction and ballistic missiles, the two leaders emphasized the need for a comprehensive strategy to address this threat, including a variety of defense systems and diplomatic initiatives, such as arms reductions. The President and the Prime Minister agreed that the two governments should continue to consult closely on missile defense, together with strengthened non-proliferation and counter-proliferation measures. The Prime Minister reiterated Japan's understanding regarding the President's call for exploring a new approach to transforming deterrence. The president and Prime Minister also reiterated the importance of cooperative research on ballistic missile defense technologies.

ECONOMIC PERTNERSHIP FOR GROWTH

The President and Prime Minister affirmed their belief that open markets and sound macroeconomic and regulatory policy are vital for sustained prosperity. The Prime Minister expressed his determination to vigorously and comprehensively implement structural and regulatory reform to revitalize the Japanese economy, including through effectively addressing corporate debt and non-performing loans. The President expressed his appreciation for the Prime Minister's plan, "Structural Reform in the Japanese Economy: Basic Policies for Macroeconomic Management." The Prime Minister welcomed the President's strong intention to support sustained economic growth in the United States through tax cuts and other measures. They noted with satisfaction the completion of the Forth Joint Status Report on Deregulation and Competition Policy, and called for increased collaborative efforts to improve their nations' climates for foreign direct investment.

The two leaders announced the launch of a new bilateral economic initiative called the U.S. -Japan Economic Partnership for Growth (detailed in Annex). This initiative establishes a structure for cooperation and encouragement on bilateral, regional and global economic and trade issues. Both governments also will engage in cooperative efforts to address other key issues.

President Bush and Prime Minister Koizumi reaffirmed their determination to stay personally engaged in the effort to launch a new WTO round later this year in Qatar, to further liberalize world trade and to clarify, strengthen and extend WTO rules, so as to promote economic growth and equip the trading system to meet the challenges of globalization.

COOPERATION ON GLOBAL CHALLENGES

The President and Prime Minister recognized the past cooperative efforts of the two countries in tackling complex global challenges, and pledged to build on these successes to further expand bilateral global cooperation.

The Prime Minister announced his intention to commit 200 million U.S. dollars for the Global Health Fund. The President, who has already pledged 200 million U.S. dollars to help establish the fund, welcomed the Prime Minister's announcement with gratitude.

The President and Prime Minister expressed their shared understanding of the seriousness of the challenge posed by climate change, The Prime Minister pointed to the importance of the Kyoto Protocol in this regard. The President and Prime Minister recognized that climate change is a pressing global problem requiring a global approach. Bearing in mind Japan's leadership at Kyoto, the President welcomed the Prime Minister's offer to initiate promptly high-level U.S. -Japan government-to-government consultations to explore common ground and areas for common action on climate change.

PARTNERS IN AN ENDURING ALLIANCE

The meeting at Camp David provided an opportunity for the President and Prime Minister to get to know each other on a personal basis so that they can work together as leaders of an enduring alliance and as close friends. Noting that the strength of the alliance rests on the robust support of the American and Japanese people, the two leaders welcomed expanded exchanges among the citizens of both nations. The President and Prime Minister decided that at their meeting in Tokyo in the fall they will review progress on strategic dialogue and the Economic Partners for Growth, and that they will work to expand bilateral cooperation on global challenges.