9% EGBJECT Meeting with Frime Minister nghiki aifu f Qggan Th EreSident James A Eakex EEK Sasretary sf Staae Brant Scawcraft Assistant to tha resi ent far Natianal Sacuxity ffairs Richar Seigman Assistant Sacretary 95 State far East Asian and Pacific Affair Sammy Bearg Dyke NSC Staff stetakar Frances Sgads Interpreter Teghiki Kaifu Prime Minister Tara Nakayama Minis e Gf Eareign Affairs ambassadax Gwada Mr Matsuura Mr Oshima Mr Skametc $suruata Interpxeter Septambar 29 8 05 ARE PLACE Waldorf Astaria Hotel New York City Ehe @r gid g Weiaame and am very pleased 9 See you at this gritisai y i$ rtant time I am gra afal the many camsultatiegs yau and I have had personally and the ame by mu finaaga and fareiga ministers Fram my ta dp i t I want t9 ay hankg far Cgmimg hare apgiagize the ew f rk traffic ti uyg I Ea Sgaak ubiialy in Ha gayiag tha 33 Egg 33$ Si ambngidg in aha bilatagaily in 3% am waxy gieaga with hava $31 $33 gg geaag ta raigg ha wax 3 Egr hg tG yam ggaigg wai amgg iai ex yaax $3332EQQ ya agai ave air a ta yam wiih taxg 33d Qaiig haw Egg 3% t ig grigis wag 9 tgraza i a mir gag iaa azg iy y ur aguraga am gag r$ ptig aga ag t0 egiay f zaeg agath r with ha yabg a EM 13 Na Mi 1 ma agg m WM m @2958 alt 4 1 $535535 wm agaig 2 eultileterei farce gee in the Ueited the has keet Saddam free taking further ectien ee we were ieekieg ferward 0 majer trend ie MW free $3 Seviet epyeeitien te ene ef diaiegue we everleek aggressien gapee is cemeittee to fuii ef the we and have been exerting all of my te thie ifire alarm geseeh Reed came in and assured us it was false Egiee Minisger Kaifu I have acted en the basis 0f thie tegether with my eabieet te came up with far Egyyt Jerdam ead Turkey $2 billion worth ef aid in edditien we have cemtribeted $22 millien te reiieving refugee preblems but meet important is net the eeney As I teid yea in the beginning I weuid es the meet could te eeme up with assistance In kind we are previeieg medical and ethers types ef aesieteece are new gradueiiy eeming te reality think we have discussee ever the phene that there are many ways te deal with this crisis with eanctiens to get them as effective as can he i ieek ferwerd te year eentinuing streng leadership The eresidemt We fully understand the constitutienal eenetraiets ef Japan and understane you have eemetructed ways fer the Japan $eif Defense Ferees t0 participate in the ferees eeythieg like that would be very useful and quite well received ereund the eerie Yea Gulf sepyert I urge it not be delayeei Same as feet as Yea may have Siet prebiees but I it met te lay ever until nexe year The recipients it as Seem as peseible igf Ge a different yeu have been most ie terms ef es atiee Se eet he if it be increased in 199 ii weeie eignei 3e readily been meet em ee thee fee ether See ie eieege egrieeitere Sregeey egeie we ere eieh ie yee ee eEeet ie yeer Qieti knee ie fee yee e ef ee eeif ie eerie we fee ea in with the ES ee eie E e eeyeere ee ee and te were fee ef te eegeey Se jeet eeke tee gee eek gee e ehere wiee gee eebie 8 3 iet that w@ axe tryiag ta get as much an the trada gide ag ha athgr Subject Tashiki was the Strategic $e releum Resazve fhgge Specuiatars largely in Chicaga and eisewhere ar rivimg Oil priaas up an a purely specuiative basis And E m aura there is gancera abeut that in Japan a3 wall as hare asgegsment 13 that there is as a shortage cf 3i going to market but there may ha in the Garth quaxter this year Se it might be that we sh uld jain tagethar to draw dawn sama fram the 89R 0 cauateract the market and relieve same cf the in the fsurth quarter we have been a little dividad whather t9 cal yam abcut drawing dawn our Own We are act in that made new Eat we will make a teat draw awn a Qur awn 95 Guy Energy erartment is urging a gignificant drawdewn and t0 urge Japan and Garmany to jain in But ethers are a iittle mare cautiaus abaut that appreach right new 1 weuld like ta arga that we stay in c asa tench on it and act in cancert as mush as pQSsible It would semd a $ignal t0 specul tars I have not raise this with Chanceller yet but wantad you to knaw new that we are thinking abeut it gm rime Minister Kaifu Gm the first quastian as said we are centempiating discussing amang ourselvas what Ja an ca do We are lacking into a wcrid that 13 changing and the U8 is leadiag the warld that will be sentered araun the United Natians I am supgarting a law we call 3% Feace Cooperatimn Law The Cmeperatien Carpg which will be dispatche under this law will ingla e everyane frem Japan being disgatchad it is a completeiy new comaept it will enable Eapam net t0 u t sen maney but alga persc ei We be sweating with you toa g he Japanese pagpie in the last yeara have been used is yrovided by yea The Jaga eaa are $5 the aderstandiag that at ne aimg of Warid War Z Sagan caused severe arguble hrsughaut warld a d desida 6 be invg ve in ax aativit eg Gf f rme hat i5 hg Sf the y u ngar igg am i i3 trug ha aha gtabii tg f gaga hag ta $33 ili y 33 Asia T ref ra th framgw rk u ax whisk 3% $32 gaggi rimg th big is 3 inaiade sag ar ii hat as ax iimitiag garggEVQg ta gativiti g Siai gmi tg Egg gri r depariiag 2 gragg g afargxc fthher ha i3 gagag 33 hi 3% ih @wbiia ggi ia wiil aavg a f i x wanted is imgr gs aggn th gaga gga ih aggiga g3 Th 9 i m f what was tha r zign Eavgrabiw ig SzeRw ggaa MW @rima Minigter Kaifu invited an tha @arty leaders The iargagt aygagitian yarty was strongly appased The sascnd largest appegitian yarty ut strmag regtrictions QR and they refer ma ta dispatch at all Thig is against the backgraund Sf Sagan nave in th past Engaging in Su h an axercige Thera be much mare img an many mare arguments is be dame bafare we eagagg x it but iatend ta de it 33 whan g wiil have mare detaiig sf tha biil I will have Ambassadgr Murata infarm yau gr in your Admiaistrati n Sia e we are still wri ing it 1 am act in a pssitian right now ta i211 yea ail the contents uh Sacand an th gantributian Right after 1 a naunced the ma a 9f an contribution I made @ublic the $1 biliisn fig re That was what W8 cauld make immediately available thig fiscal year When Searetary Brady game he infarmed me that mare funds wiil be n eded in the run 30 I said an additienal $l billian but it is net in the carrent FY reserve fund I am cansuiting with tha Finance Miniater how to back up this pla ge We Gf caurse will try ta come up with additicnai funds in tha current budgat but will mat produce en ugh So I intend to call an Extraardinary gassian Diet to came up with the fands Cf the $2 billian ple ged we will take measures ta make $600 miliian available this yaar an the regt maybe through mat directly by cur budget We discuss it The first $1 billianz which we hope wauld primariiy g6 to the US was intende srigimaliy 9 be givedaclimad Thezefgra we had t0 g0 ta the GCC an threugh negatiationg we were able 9 set up Gulf Sand far Pgace $1 billicm 13 there airea y an in kiad the ES an paymenta ts the aircraft sharters have alraady been ma a Tha $22 millisa ca tributism t9 refugees 13 baimg uSed ta iapat h airczaft ta $zdan aad aarzy hamg the ma iqai aa went firgt ta ag i xabia than 2% ggr aa t3 a g if t re are gay g iaal ge g ay gag meet ru ay a3 a ata a aha gummit Ja am g yagiti m 3 3% havg t a gzggaay Eaam gaa gg g v g iagtzaati gg in thig zag x 3 my g 3% artg awe raag ve Ezgm my gricaituza E gigiaz SQ Sagiam az 3% gu aiita i tha affgx GE a Eigt an gvg ugi$ wa axgta anagriag gr hi maf ui imgizust my ta ff fg i g h gg by firgt art f Sgceabar wa g abia ts agrivg a a gusgesgfuz agraa ama g n Beat Nati n Suggart we have been making an an awn an tha undergtgading that ha Us ayaa sacurity arramgement i3 sf utmaat imparta ce So we have been making a majar affart aw in tha aga ase we re cem$iderimg next aidtarg @efamsa plan and we are $n$iderigg East Natian And I wguld stat ta ysu that as a matter 3f csurse we will maka an hast efforts fer yam far the n Bag Nazism as we were cansidering cm tribution$ in the Mi dle East game said shauld be inclu ed as a pillar in an er$iam Gu f help Gthers said it is a mattax Qf ccurse and should mat ha gart Sf our cantributian t0 the Middla ast criaia Ehis latter viaw pgavailad Eleaga dgn t miscenstrue jug becau5 we have aQ mentimn d this durimg the CriSiS Th y are se arate Th3 re ident 393 they are separat Prime Minister Kaifu Si ce we are seeing ail prices rise we need a serious respense far Japan We are new thinking if wa in icate WE will nag the reserves we invite genie $0 we would rather ta pespia they need ta canserve Sagaa had barrels a day of Gil Iraq and Kuwait aad they are game and the price is rising an we need to accept it if the vciume Cf Gil in Sagan gags down we need ta d0 something but right maw the Ja anese Gavernment gositien is to tell peepie they need 0 live with the price hikes and not tauch the reservgs I just stated in a very gimple and frank way an pasitisn Since the whaze wsrl is undergaing change crisis we may need ta consider this further and pleasa cantact me or us $rggidgn z will it is hard t0 knaw what is the rig t thiag to de Let g gtay in 01038 tauah am this he Emergy kgenty will be digc gsi g it saga in aha m xt few days rim@ Minister Kaifg yieaga feal frag 6 canauli ma an thig iggua whan wa nea ta Cecg rate aa 2 13 5% as mugh as Gag I wsal iika to taka this ta ya Egraa A taam h a g g Eanamara igciu i g visitad Egrzh staa Pgiar t my dagaxiure hag gaid as iaadgr $5 tha glagiz far SEE g gz i Eat w avg ma igtisnghig wiah gxih axaa I gai gay aagtkigg a3 ma i igtag he vi it g at gi y g ma gg Era mggiag QW tiaa gxt gtiil aag 133A agfagaar g t aigg wa Egg mea aai g i gt ah 33$ 333$ imiand 2% him iaf rm sgg ta aa a g a aianc gaggigtign ix ha @ad A 3 3 3 3 a if 13 95 3 MM gg fw Ehg Ergsidengz What 3 the Eategt with the zime Minister Kaifu Saviat Eareign niaiatar Shavar madza came ta Jagan and 1 held talks with him Eur the visit we agreed that aexbachev waal vigit Japan in Agrii We have the territszia quastian ta ha reselva fhe wortharn Territaries remain an isgue from Warid war 1 and we iatend t0 rasalve it with a p ace treaty hcpe garbachav s visit i3 a turning paint Sp than a Saviet ecaaemic taam may came ta leaxn about the Sapanesg ecanamy a d we may have a tachnicai asgistaace ieam But as we g0 inta this we Cannmt set asi e the xarthera @erzitaries i33ue ym T e Prgsidgng R0 g Primg Ministgr Kaifu We feel they may be thinking about putting Narthern ferritcrieg issue off far the next tan yearg I m aencerned SS I tald the Sevigt Ambassadar we are looking far stability of the soviet Jayanesa relatienship So we suppart peregtroika I have ma a these points 0 them I 160k far your cantinued Seerge 9g Prgsidengz Yea we will centinue t0 you and hcya they will you an this langsta ding issue rime Minigter Kaifu I wauid again like ta reiterate that wa are interested in free demscracy and market aconamies becoming the gavarning rulas 95 the and wa ought t0 get rid 9f Sad am Eussein as gean as passible 9% wauld iike invite yam and Barbara t0 make a State Visit in the syring Saunas great 1 acaept bafera yam ghange yaur mind Bar will be baggy e will have t9 wark Gut t e dates i$ impaxta t fer the Us aa Japan far ether reagg g LL ww'En GE anvargatiga WM This document is from the holdings of The National Security Archive Suite 701 Gelman Library The George Washington University 2130 H Street NW Washington D C 20037 Phone 202 994-7000 Fax 202 994-7005 nsarchiv@gwu edu