6279 THE WH lTE HOUSE WASHINGTON MEMORANDUM OF TELEPHONE CONVERSATION SUBJECT Telcon with Toshiki Kaifu Prime Minister of Japan on Aug st 3 1990 U PARTICIPANTS The President Toshiki Kaifu Prime Minister Interpreter Frances Seeds Notetaker Douglas H Paal NSC DATE TIME AND PLACE August 3 1990 8 00 - 8 22pm EDT Camp David The President telephoned Prime Minister Kaifu concerning Iraq and Kuwait U The President PM Kaifu Toshiki how are you sir Fine thank you How are you U U I am calling you because of the deep concern I know you and I share about the situation in the Persian Gulf ¢ PM Kaifu I know it very well ' If it is agreeable with you a few points and then ask your opinion ' PM Kaifu Certainly please go ahead I would like to make U I met wich Prine Minister Thatcher yesterday and spoke with President Mitterrand and Chancellor Kohl a few minutes ago We concluded that concerted action is needed now co reverse Iraqi actions and restore the rightful government of Kuwait President Ozal of Turkey incidentally agrees with that JZ' My hope is chat your government will be able to join with us in emphasizing that che actions Iraq has taker are unacceptable and must be reversed Declassify on OADR OEClASSIF ED PER E 0 12958 AS AMENDED eJ 1 Iii lt aoq 2 C0-04tlf- P eQNFIOEN'FIAL 2 eoNFI BENTIAt One way to pressure Saddam is to bring economic pressure to bear on him This will only be effective if the international community is on board As you know I have already imposed mandatory sanctions on Iraq and we have frozen both Kuwaiti and Iraqi assets because we did not want Iraq to spend Kuwait's money In the UN we are working hard to pass a resolution that would essentially impose Chapter Seven sanctions on Iraq It is very important that Japan and the U S be together I would request that we work together on this because it is very important Kl King Fahd told me he considers Saddam Hussein like a Hitler He called him a liar I know you depend on Gulf oil and we have to consult on that but we are also considering ways to stop Iraqrs oil export capability We are talking to the Turks about what they might do to close the pipeline Also Saudi Arabia is possible - I think Anierican naval ships are going to the Gulf Also U K ships are headed there Fortunately there is excess capacity If Iraq doesn't produce one drop Saudi Arabia can make up the loss 1 Toshiki I know Iraq is in debt to Japan but I hope that consideration will not prevent you from joining us in showing Baghdad as soon as possible that it faces worldwide opposition We have cut off all loans credits CC credits and all that and I would strongly urge you to do that j2' We believe this situation is very serious Saddam Hussein simply cannot get away with this If he gets away with this there is no telling what he will do with his oil and with his new-found power The status quo really has to be reversed I really encourage your cooperation It is essential to the success of what we are doing I would like to hear what you think 1 PM Kaifu George first of all I would like to say I can fully understand what you are doing and extend my heartfelt respect for your hard work these past few days Let me summarize my thinking into three points First the Iraqi invasion is very regrettable They should pull out the troops immediately We have communicated in Tokyo in Baghdad and are making the Japanese position know to the world The second point is that the position the Japanese government is taking is from the same standpoint as you and the other countries of the West take For example we have already taken action to freeze Kuwaiti assets £ The third poin is in the event Iraqi troops are not withdrawn from Kuwait the international community should take joint actions as appropriate The Japanese government will take actions sincerely when agreed in Chapter Seven by the UN and the international community jl' 3 BONFIDENTIAl Good I am very encouraged by that We should stay in touch and work together I am very pleased Toshiki that the Soviets are playing a very constructive role Let's stay in touch If the international community acts with unity maybe that is the best way to get Saddam Hussein to remove his troops PM Kaifu George I do agree with you We should not allow such $ an act contrary to justice in the world t Thanks It is awfully nice to talk to you We should stay in touch If anything comes up I hope you will call me If there are any new developments that affect Japan then I will let you know -- -' X ' '' '-- Yes please We should stay in touch We will keep working my friend 1 Jt Very nice talking to you End of Conversation