Record of Prime Minister Suzuki’s Visit to China and Meetings

Record of Prime Minister Suzuki’s Visit to China and Meetings

Secret No. 69

October 9, 1982

China Division

This record is a summary of the remarks made at the following meetings on the occasion of Prime Minister Suzuki’s visit to China of 26 September – 1 October.

(1) First Summit Meeting, September 26

(2) Second Summit Meeting, September 27

(3) Meeting Between the Prime Minister and Deng Xiaoping, September 28

(4) Meeting Between the Prime Minister and Hu Yaobang, September 28

(Exempted)

Contents

I. First Summit Meeting ...1

(Bilateral Relationship)

1. Overview of Japan-China Relationship ...1

2. Criticism over Textbook Issue, Revival of Militarism … 2

3. Twelfth National Party Congress, Modernization Policy ...6

4. Our Country’s Cooperation on Modernization ...7

5. China’s Economic Situation ...9

6. Promotion of Public Cooperation and Improvement of the Environment ...11

7. Bohai Bay Oil Development ...12

8. Modernization of Existing Factories ...13

9. Oil Development in the Yellow Sea, South China Sea ...14

10. Japan-China Joint Development of Non-Ferrous Metals ...15

11. Sanjiang Plain ...16

12. Japan-China Friendship Center ...17

II. Second Summit Meeting ...18

(International Situation)

1. Sino-Soviet Relations...18

2. US-China Relations...24

3. Taiwan Issue, Japan-Taiwan Relations...27

4. Japan-US Relations ...29

5. Korea Issue ...30

6. Middle East Issue ...35

7. Conclusion ...37

III. Meeting Between Prime Minister and Deng Xiaoping …38

1. Overview of Japan-China Relations ...38

2. China’s Domestic Politics ...42

3. Japan-China Economic Relations, China’s Economic Plan ...43

4. Revival of Militarism Issue ...46

5. Sino-Soviet Relations ...47

6. Hong Kong Issue ...49

IV. Meeting Between Prime Minister and Hu Yaobang ...52

1. Japan-China Relations ...52

2. Conversation at Lunch Meeting ...55

[TN: A handwritten note between parentheses reads: “The rest of this page and the following one are exempted.” The next page is blank, except for handwritten note between parentheses: “Exempted”]

I. First Summit Meeting (Bilateral Relationship)

September 26 (Sunday), 16:45 – 18:45

1. Overview of Japan-China Relationship

Prime Minister Suzuki: This year is a milestone, exactly 10 years since the normalization of relations between Japan and China. In these 10 years, as a result of the untiring efforts of the governments and people of both countries for relations of friendship and cooperation, we have established today’s wonderful relationship between Japan and China. Truly, today there has been built an unwavering, constructive, and cooperative relationship between Japan and China. This is the fruit of the great predecessors who came before us. I express deep respect to the hard work of those who came before us and, at the same time, I would like us to take this memorable year as an opportunity for us to build a firmer and closer relationship. That, I think, would be to the mutual benefit of the people of our two countries and, at the same time, would contribute to the peace and prosperity of Asia and, further, to the world’s peace and prosperity.

Premier Zhao: With the 10^th anniversary of the normalization of relations between China and Japan close at hand, Prime Minister Suzuki, I welcome you once again on visiting China. I am grateful for enjoying at the time of my visit to Japan in May the entire nation’s warm hospitality.

Truly, as you said, the relations of friendship between our two countries in these past 10 years have achieved great development in a wide range of fields. This is the fruit of the efforts made in common by the governments and people of both countries. I am pleased that the relations of friendship and cooperation between China and Japan have developed to where they are today.

As you know, our country recently held its 12^th National Party Congress. At this Congress, we made clear our country’s independent foreign policy. There has been not the least change in the Chinese government’s policy of developing relations of peace and friendship, equality and mutual benefit, and long-term stability between China and Japan.

2. Criticism of Text Book Issue, Revival of Militarism

Prime Minister Suzuki: I would like to take this opportunity to speak frankly to Your Excellency, Premier Zhao, on Japan’s thinking in regard to the textbook issue.  Recently, we received sharp criticism from your country and various Asian neighbors over some of the wording in our country’s history textbooks. The Government of Japan’s recognition, stated in the preamble to the Japan-China Joint Communique – “The Japanese side is keenly conscious of the responsibility for the serious damage that Japan caused in the past to the Chinese people through war, and deeply reproaches itself.” – has not changed in the least. The Government of Japan, fully listening to the criticism from your country, correcting in the matter of the government’s responsibility, has sincerely implemented measures made clear in the Chief Cabinet Secretary statement and its explanations.

The Education Minister, with the Textbook Approval Council already advising him, would like to take as soon as possible corrective measures in regard to this issue.

Since then there seems to be concern in your country about a revival of militarism among some in our country, but I would like you to understand that the overwhelming majority of the Japanese people reject militarism and are consistently seeking peace. Our country, after the war, reflected deeply on the “error” of prewar Japan and, on the basis of the people’s determination never again to repeat such a thing, established its Peace Constitution. In the preamble to that constitution is the declaration: “We, the Japanese people, desire peace for all time [….] have determined to preserve our security and existence, trusting in the justice and faith of the peace-loving peoples of the world.” From that time until today, we have made peace our nation’s policy, and we will absolutely not become a military power, even if become an economic power. Now, regarding Japan’s defense buildup, our country, along with maintaining the minimum defensive capability necessary for its own defense, adheres to its Three Non-Nuclear Principles. Adhering to such a defense policy, we have made efforts to this day to build our country as a peaceful country. I would like you to understand that the absolute majority of the Japanese people support this and that, on this basis of that consensus, this national policy now and in the future will be immutable. I would like you to understand that, even if there were to be criticism from some, that could not become a force to take Japan’s police in a mistaken direction. Japan, contributing to the peace and stability of the world from the peaceful position of such a Peace Constitution, cannot contribute militarily to the peace and stability of Asia and the world. However, because Japan has a certain degree of economic and technological strength, we are cooperating through this strength, according to the national situation, to promote civil welfare stability, industry, and the economy in developing countries and the Third World. In such aspects, our country would like to play an international role and fulfill its responsibilities.

The Three Non-Nuclear Principles that I just mentioned are “not possessing, not producing and not permitting the introduction of nuclear weapons.” As the only country ever to have suffered atomic bombings, our principle comes from the wish never to repeat the horrors of Hiroshima and Nagasaki.

Premier Zhao: Prime Minister Suzuki, you have brought up the textbook issue, which has certainly greatly disturbed the bilateral relationship, which had been developing without a hitch until now. I am happy to see that, today, this problem has already settled down. Consequently, we have thus been able to welcome your visit to China in a good atmosphere. Also, we appreciate the efforts that you have made to revolve the textbook issue.

China and Japan are neighbors separated only by a narrow strip of water. Between our two countries is a history of more than two thousand years of friendly relations. When I visited Japan, I said, “Opportunities of time vouchsafed by Heaven are not equal to advantages of situation afforded by the Earth, and advantages of situation afforded by the Earth are not equal to the union arising from the accord of Men.” [TN: a saying of Mencius]  Now, as you mentioned, the development of relations between our two countries accords not only with the common wish and fundamental interests of the people of our two countries but is also beneficial to the peace and stability of the Asia-Pacific region. The friendly relations between China and Japan have gone through many twists and turn to develop to the level where there are today. It was no easy thing. It is for that very reason, then, that it is necessary for us without tiring to make new efforts to cherish all the more and devote our energies to those relations, to develop them, and to protect and develop those friendly relations between our two countries and the feeling of friendship between our two peoples.

In the past, Japan inflicted great damage on the peoples of China and Japan by the war of aggression that the Japanese militarists caused, leaving behind wounds difficult to forget. The unpleasant history during this time is nothing more than a short period in the long river of friendship between China and Japan. However, that lesson is deep. I think that we must never repeat such history. In handling relations between China and Japan, we must be forward-looking. However, this does not mean that it is alright to forget the lessons of history, and their being used to willfully falsify history is even more unforgivable. The Chinese government earnestly desires to develop friendly relations with your country and does not wish for even a little harm to come to such relations.

On my previous visit to Tokyo, I said to you that the development of relations between China and Japan should not be effected by the wind and waves of international relations. I would like to make an additional point. Relations between China and Japan still have to overcome various obstacles. I wish to highly appreciate your having repeatedly spoken of protecting the spirit of the Sino-Japanese Joint Statement and for the statement about taking responsibility to make sure to correct the textbook issue. The Chinese government and I, myself, would like to work with your country’s government and with you to protect and develop the friendly relations between our two countries.

3. 12^th National Party Congress, Modernization Policy

Prime Minister Suzuki: Premier Zhao, several months have passed since I saw you in May. Since that time, your country has made a great success of the 12^th National Party Congress. People of the world were paying attention to it with great interest: to the establishment at this congress of a powerful leadership system; to the unanimous adoption of the resolution to strongly promote under this system the policy of the “Four Modernizations” as the fixed line of national policy; and to the establishment by means of this policy of the grand goal of quadrupling the total production value of agriculture and industry by the year 2000 and the working together of the Party, government, and people toward that goal. I highly appraise these points and, at the same time, Japan hopes for their successful realization.

Premier Zhao: Prime Minister Suzuki, you spoke of the 12^th National Party Congress. Holding this congress showed that our country has already entered in a political sense a period of long-term stability. The modernization line and the series of policies, including that of opening to the outside world, which we are now implementing, are an expression of a further guarantee of continuity going forward. At this recent congress, we set forth major lines and policies on the future goals in economic construction until the end of this century for which we are aiming. These lines and policies are not things considered for a moment in order to hold the congress; they are the result of close study and examination over a long period. Accordingly, the holding of the recent 12^th National Party Congress is an expression of China’s entering henceforth a new historical era of fully opening a new path of modernization and construction.

4. Our Country’s Cooperation on Modernization

Prime Minister Suzuki: Japan sincerely hopes for your country’s to achieve the goals of its modernization policy because your country and Japan will derive much mutual benefit from that success. In addition, that would lead to an increase in the stability of Asia’s economies and people’s lives. Your country has many natural resources. Your human resources are also plentiful. Japan has technology and a certain degree of economic strength. Our two countries being in a cooperative relationship on your country’s grand economic construction is, in other words, a way to guide all of Asia’s economic success.

On the other hand, our country would like to engage in cooperation in no way inferior to that of the past 10 years. Also, in so doing, we would like to consult on whether we could engage in cooperation that would be a plus for your country’s development and, from there, arrive at concrete conclusions and cooperate.

Premier Zhao: When I stated the elementary idea of developing economic relations between our two countries on the basis of the three principles of “peace and friendship, equality and mutual benefit, and long-term stability”  at the time of my visit to Japan in May, I had your positive agreement. We completely agree with your words. China and Japan’s further developing economic and technical cooperation under today’s new situation, has broad prospects and is beneficial to both sides.

Prime Minister Suzuki: As you say, Japan and China are in a mutually complementary relationship, particularly in the economic field. I express my complete agreement on the view that we can expect great results if we foster our strengths, make up for our shortcomings, and cooperate with one another. I, too, completely agree regarding the pooling of our countries strengths and weaknesses benefiting the people of our two countries.

Premier Zhao: Now, in our country, new changes are taking place in the economic situation. We have goals and blueprints for the next 20 years. On the other hand, the situation in the world today is still one of economic recession. In such a situation, it is mutually necessary for our two countries to foster its own strengths, draw on each other’s strengths, and make up for our weaknesses. It would be to our mutual benefit. Accordingly, further developing economic and technological cooperation has a particularly important significance and, at the same time, it has a wide range of content.

5. China’s Economic Situation

Premier Zhao: Our country’s economic situation, seen at present, is gradually changing for the better. Since we have implemented in the agricultural villages the policy of the production responsibility system to raise the willingness of villagers to work, the situation in the agricultural villages has been wonderful. Harvests have been good, and this year will also be a bumper year. Great change has also arisen in China’s domestic production of consumer goods. A great change has arisen in the situation of a longstanding lack of consumer goods. If you walk around town and enter a department store, you will understand. In this aspect, one can say that this is the best period for China since the 1950s. Also, what I particularly wish to explain is that such good results have not come at the expense of heavy industry. Heavy industry has been recovering since the fourth quarter of last year. This year, the rate of increase for heavy industry has surpassed that of light industry. As you know, China until the 1980s continuously ran large deficits for several years. This year, we broadly reduced fiscal expenditures and aimed for a basic balance. The outlook is that we will be able this year to achieve a basic balance in these financial expenditures. All this proves that China’s economic situation has had a remarkable turn for the better. Our economy, through the three years of adjustment to date, has already started to have the conditions to start from this point onward key economic construction. Our key economic construction is energy development, the development of transportation facilities, and the development of other resources, including non-ferrous metals.

Also, we are in a good situation of returning to construction in the large-scale plant and equipment introduced since 1980 (later corrected to 1978). For the next 20 years from now, until the end of the century, our key construction will probably be growing day by day, year by year, steadily growing in scale according to plan.

On the other hand, for the next 20 years from now, particularly for the next 10 years, I would like to advance that technical transformation gradually, in a planned way, and on a large scale in regard to our existing enterprises as well. China’s existing enterprises are not only behind in management and techniques, but in equipment as well. In these aspects, too, we want a great deal of equipment, raw materials, and advanced technology.

6. Promotion of Private Cooperation and Improvement of the Environment

Prime Minister Suzuki: As you said, from this point forward China will be seeing great progress in various fields -- production, consumption, and allocation – and various enterprises of every kind, from heavy industry and light industry to small businesses, will have to be moving. Considering this, what is sought in this new era is not only such ways as intergovernmental loans or technical cooperation, but a broader partnership and cooperation of private economic circles. Tomorrow, after the meeting, it will be a pleasure to to sign this year’s loan for 65 billion yen. I would like, as the representative of the Government of Japan, to continue to cooperate as much as possible, but there are limits, naturally, to intergovernmental loans. In any event, because your country’s economy is soon to grow greatly, it is not the case that everything can be provided by cooperation between governments alone, nor is it the case that Japan alone is enough. Accordingly, because China has decided to adopt an open economic policy, it would be desirable to introduce capital and technology from other advanced industrial countries as well and, with that combined strength, to cooperate. Other than that, I think that private-sector cooperation must have a greater weight. In that sense, I think it necessary, and the opinion was put forth the other day by Mr. Doko, to providing the environmental conditions to facilitate investments and joint ventures. I wish to suggest, frankly, that preparing such items as an investment protection agreement, a tax treaty, and other domestic laws and regulations would be desirable.

Premier Zhao: You have mentioned some issues in economic and technological cooperation between China and Japan. I think that an investment protection agreement and a tax treaty are really necessary to promote relations of economic cooperation between China and Japan. Both the Chinese and Japanese sides have done a great deal of work for that, but there are still some issues on which we should agree from this point onward. I think that we should work from now onward for this.

Thus, you have put forth proposals and views on such matters as a tax treaty and an investment protection agreement. I have been very much in agreement on improving the environment to facilitate Japanese corporate investment and joint ventures and have continued working for it. However, time is needed until we succeed completely. China for many years was in a closed environment, so we have little experience in immediately moving ahead.  I would like the Japanese side to trust China. I would like to say that, so long as you sign a contract with China, China will strictly observe it. For China, a contract has a legal effect. I would like you to rest assured on this point.  

7. Oil Development in Bohai Bay

Prime Minister Suzuki: I hear that the prospecting for oil and natural gas in Bohai Bay is going very well. I would like to speed up the exploration in your country and, if possible, dig 9 wells. The 210 million in funding to date is insufficient. There is a proposal to increase this by 400 million to 610 million, and I also approve of it. I hear that a delegation from our side will be put together next month and that the Japan National Oil Corporation and others will have detailed consultations with the Japan China Oil Development Corporation [JCOD]. I would like to do everything possible to make this happen.

Premier Zhao: We put forth a proposal on the 5^th regarding speeding up the prospecting for oil and natural gas in Bohai Bay. After that, with your cooperation, oil companies on both sides have been actively considering it and are now working out a reliable and feasible plan. As far as I know, the exploration has been going smoothly. This is a relatively major item in the economic cooperation between our two countries. Going forward, I would like both sides to work to speed up exploration and quickly make development possible.

8. Modernization of Existing Factories

Prime Minister Suzuki: You mentioned it earlier, but I think that the modernization and renovation of existing factories is a realistic policy. Japan’s Ministry of International Trade and Industry [MITI] in FY1981 conducted with your country a diagnosis on factories. Those results were very good, and there is a plan to double it in FY1982. I think that we should move quickly to implement this as well. As support, we will use a bank loan from the Export-Import Bank of Japan. In such a field as this, I think that the cooperation of private enterprises is really necessary.

Premier Zhao: I agree with you on the technical transformation of existing factories and would like to greatly promote private-sector cooperation. You brought up the corporate diagnosis of the 16 enterprises done to date. Going forward, they should be expanded. Also, recently, our two countries agreed on FY1982 government yen loans and also agreed on the Sino-Japanese Long-Term Trade Agreement. I am pleased with this.

9. Oil Development in Yellow Sea, South China Sea

Prime Minister Suzuki: With mention made on Bohai Bay’s oil, I hear regarding prospecting for oil development in the Yellow Sea and South China Sea that there is also bidding from Japan but that decisions will be made next spring. I would like the enthusiasm of Japan’s companies to be taken into consideration and ask that past performance also be considered and that they be given special consideration.

Premier Zhao: We have heard your thinking regarding the international bidding issue for oil development in the South China Sea and Yellow Sea and have already informed the Ministry of Petroleum Industry. We have called on the Ministry of Petroleum Industry to give consideration to the Japanese side’s view. On the 5^th, as I said, in light of the friendly and cooperative relations between our two countries, I would like to handle this issue with a forward-looking (xiangqian kan) attitude and, if the conditions are the same, I would like to give consideration, of course, to Japanese companies. There has been no change to date in this thinking.

10. Japan-China Joint Development of Non-Ferrous Metals

Premier Zhao: Prime Minister Suzuki, I would like to raise at this time an issue and ask for your consideration. You need not answer now. I would like you to return to Japan and consider it. China is a country with a relative abundance of non-ferrous ores but, at present, development of these resources is insufficient. The development of these resources is, of course, highly significant for China’s modernization. It is important for your country as well.  These resources are almost all in the Northwest and Northeast. In general, their development takes a long time, with a great deal of funds invested and much electricity required. Large quantities of electricity are consumed in the development of non-ferrous metals. However, in the Northwest and Southwest are abundant hydropower resources. I would like to raise the issue of whether or not there exists the possibility to develop non-ferrous metals, necessary for both China and Japan, other than for the joint development of energy, in order to develop long-term and stable relations between China and Japan. At present, our two countries have carried out fruitful cooperation on the joint development of energy and have long-term plans. I wonder how it would be if both sides were to consider together this cooperation in regard to the joint development henceforth of non-ferrous metals. This is no small undertaking. The developing of non-ferrous metals is often accompanied by the development of hydroelectricity. I am not asking for an immediate answer, but I raise this issue and would like you to consider it.

Prime Minister Suzuki: Regarding the development of non-ferrous metals, I hear that a development survey is being conducted on a government basis of the Anqing Copper Mine. There are not enough of these non-ferrous metals in the world. I hear that, in a certain country, they are being stockpiled as they are militarily indispensable. Regarding their development, let us study this fully going forward, not only between governments but also in various possible ways.

11. Sanjiang Plain

Prime Minister Suzuki: Premier Zhao, I would like to hear your ideas related to agriculture. Japan, too, is now proceeding with the testing of the Sanjiang Plain’s development as technical cooperation. It is considered an effective project for future increased food production in your country and for agricultural promotion. However, I wonder whether China has priorities in its overall future long-term planning and would like to ask what would be those priorities. On that basis, I would like to examine what kind of cooperation Japan can do.

Premier Zhao: So far as I know, I hear that persons from various fields have come from your country and have already been in contact with the Ministry of Agriculture. The Chinese government is positive on the development of the Sanjiang Plain. Also, we are interested in cooperation with Japan on this project. I would like to leave discussion on the specific issues to the responsible departments. At the time of Agriculture Minister Tazawa’s visit to China, he met and had consultations with the Chinese minister of agriculture. Both sides expressed interest at that time.

12. Japan-China Friendship Center

Prime Minister Suzuki: Speaking for Japan, what I would like to say in sum is that I think mutual understanding at every level is important for further strengthening and developing cooperative relations henceforth with your country. From that viewpoint, engaging in exchanges to a large degree of exchange students, missions, and the like is important. There are many exchange students and the like in Japan. There is increasing momentum from having realized – as a project for the 10th anniversary of the normalization of relations – the construction of the “Japan-China Friendship Center” to welcome these persons and as a base for their activities in Japan. I also think that, because this is a good commemorative project, the government would definitely like to promote it, and I ask for your understanding.

Premier Zhao:  I agree with your proposal, Prime Minister Suzuki. I would like to promote it for success.

II. Second Summit Meeting (International Situation)

September 27, 9:30 – 11:45

1. Sino-Soviet Relations

Prime Minister Suzuki: Secretary General Hu Yaobang spoke at the recent 12^th National Party Congress regarding relations with the Soviet Union. He said something to the effect that, if the Soviet side improved its attitude and really adopted various improvement measures, then he was prepared to improve relations between China and the Soviet Union.  I would like to start by asking about this issue.

Is there a change in China’s Soviet policy? He has spoken of what would happen if practical measures were taken, but what are practical measures? Also, is it possible that the Soviet Union would take such measures? Will the Soviet Union respond? I would like to ask regarding your country’s overall recognition of the Soviet Union.

Premier Zhao: I explained in Tokyo in May regarding the Chinese side’s thinking on the overall international situation. I do not think that the international situation has basically changed since then. In our Tokyo meeting, we agreed in the recognition that the present international situation was unstable, tense, and difficult. After my visit to Japan, there arose the issues of Israel’s invasion of Lebanon and the massacre of Lebanese and Palestinians. In Tokyo, we discussed with each other how, even though not one of the previous issues had been resolved, new clashes were occurring without cease. The developments of the situation since then proves this more and more. The Chinese government recognizes that, even now, the basic cause for the tense and unstable international situation is the struggle for hegemony between the superpowers. Its basic structure, after all, is one of Soviet offense and US defense. The main threat to world peace and stability is Soviet hegemony.

In order to oppose hegemony and defend world peace, there has been no change in our basic policy of uniting with the countries of the Third World and joining together with countries of the world, including the United States, to restrain Soviet hegemony.

You touched on China’s relations with the Soviet Union, but General Secretary Hu Yaobang has already made China’s position clear at the 12^th National Party Congress.  China’s basic position is as follows:

(1) The Soviet Union’s policy of pushing ahead with hegemony around the world has still not changed. Thus, our policy of opposing Soviet hegemony has not changed even a little.

(2) Maintaining and developing normal state-to-state relations on the basis of the Five Principles of Peaceful Coexistence is also the consistent position of China.

(3) To date, the Soviet authorities have repeatedly expressed their desire to improve Sino-Soviet relations. We have said that one must look at actions, not words, and so it is necessary for both sides to come into contact on this issue. I will say to here that it has been decided that, on the 4^th or 5^th of next month, the Soviet Union will send Deputy Foreign Minister Ilichev to Beijing and that there will be an exchange of views on bilateral relations. If the Soviet authorities truly have the sincerity to improve relations with China, then they should take practical measures to remove the threat to our country’s security.

As you know, the Soviet Union stations a large army on the Sino-Soviet border and has put an army in Mongolia as well. The Soviet Union also supports Vietnam’s invasion of Cambodia and has invaded Afghanistan. All of this is a threat to China’s security.

If the Soviet Union truly has the sincerity to improve relations with China and takes steps to remove the threat to our country’s security, and if bilateral relations are improved, then that is what we hope for, of course, and it would be in the interests of both sides.

However, there are great differences between China and the Soviet Union, so achieving that would not be easy at all. Accordingly, I think that contacts for such an improvement in relations between China and the Soviet Union would be long and continuing, like a marathon.

I will take this opportunity to say that China’s diplomatic policy is a consistent one of principled independence. When China sets forth its own policy, it does so not for its own interests alone but in consideration of the overall situation of global strategy as well. China’s foreign policy is certainly not one that lightly changes in a moment or over an incident. Also, at the recent National Party Congress, there was repeatedly expressed the principled position that China will never be subordinate to any big power. When associating with the United States, we will not play the Soviet card. Nor will we play the US card when associating with the Soviet Union. We will absolutely not tolerate other countries playing the China card. In short, Chinese diplomacy’s basic policies are:

(1) opposition to hegemony and defense of world peace

(2) the maintaining and development of normal state-to-state relations with the world’s countries on the basis of the Five Principles of Peaceful Coexistence.

Prime Minister Suzuki: You spoke forcefully on your country’s consistent diplomatic policy. Regarding Soviet policy, too, my understanding is General Secretary Hu said that he would adhere to the conventional policy. In particular, as I see it, the various actions that the Soviet Union takes, such as putting the Soviet military on the Sino-Soviet border or in Mongolia, aiding Vietnam, and invading Afghanistan, are not simply undertaken with China as the target. They are, after all, the measures and actions of a Soviet global strategy that takes into consideration a powerful force: the United States. Accordingly, it does not mean that the Soviet Union will all of a sudden improve such measures. (Premier Zhao nodded vigorously in response). I think that, in that sense, it will be difficult to improve the situation much, even with discussions taking place from this point forward between China and the Soviet Union.

Premier Zhao: (to Foreign Ministry participants around him) How long have you done border negotiations?

Vice Minister Wu Xueqian: They have gone on for 9 or 10 years. Deputy Foreign Minister Ilichev often comes to Beijing.

Minister Huang Hua: Ilichev has been in charge of the border negotiations the whole time.

Premier Zhao: Our view, too, is similar to yours. The Chinese government has to date been saying that the Soviet Union’s aid to Vietnam and invasion of Afghanistan are components of its policy of global hegemony, and nowhere are there to be seen signs that the Soviet Union will change such a policy.

Prime Minister Suzuki: The Soviet Union has been invading Afghanistan, aiding Vietnam, and building military bases, but I think that all this has become a great burden for the Soviet Union. Today, the Soviet economy has repeated failures in agricultural policy, production drops in mining and manufacturing, and the allocation of a great deal of resources to military spending. From this, I think that the people’s standard of living will have to be greatly cut, so the Soviet economic is faced with difficulties. Also the countries of the Eastern Europe Bloc countries, the Soviet Union’s satellite countries, whether seen from the aspect of the international balance of payments or the economy and trade on the whole, are in a state of crisis. Accordingly, the West’s economic measures against the Soviet Union have a very important meaning. The issue of the West’s economic policy against the Soviet Union was discussed at the Versailles Summit. Before a complete consensus was reached, disagreement arose between the United States and West European countries over the pipeline issue. At present, this is a troublesome issue in the Western camp. However, as I see it, I think that if a general agreement is reached on granting new credits to the Soviet Union, then discussions will gradually follow on the pipeline issue. As for Japan, on the issue of developing oil and natural gas in Sakhalin, Japanese enterprises are doing it in joint venture with the Soviet Union. They have been doing this for the past 6 or 7 years. The pipeline issue does not involves only Europe. Japan, as it is also involved, is asking the United States to reconsider. However, if the West can simply come to a general consensus on the granting of new credits to the Soviet Union, then I think that the problem is going to solve itself.

Premier Zhao: Recently, first former President Nixon, then Prime Minister Thatcher visited, and everyone talked about this issue. Also, I was asked how the Chinese government was viewing it. I answered Nixon then that China would not approve of any measure that would strengthen Soviet power. In addition, concerning what actions the United States would find unacceptable in its partners, Washington needs to take the lead and not do such things itself. When Reagan came on the scene, he lifted the grain embargo, then told the Western countries that they must not sell pipeline to the Soviet Union, so people in the West complained.

2. US-China Relations

Prime Minister Suzuki: Concerning the issue of arms sales to Taiwan, I think that it is a temporary compromise solution but, in any case, I take it that the United States and China are talking to one another and that the severe difference in views has subsided for the time being. I highly appreciate the United States and China for having been able to take a constructive posture of seeking to handle the issue in assessing the overall situation and talking with one another. However, in the meantime, with no basic resolution of the issue, I think that there is various thinking about it. I would like to ask you about this point.

Premier Zhao: Changes in China-US relations are new changes since the talks in May. At that time, in May, China-US relations were in a delicate stage. The Chinese and US sides in the end reached an agreement for the time being on this issue. This is an important step taken to remove a major obstacle   lying athwart the China-US bilateral relationship, and it is worthy of satisfaction. However, the recent China-US Joint Communique is only a beginning for the resolution of this issue. It does not mean that it has been resolved. The key to this issue will be the US government’s observing the obligations to which it clearly committed in the Joint Communique. In short, it is to gradually reduce the arms supplied to Taiwan and, in the end, to halt them completely. The Chinese side hopes that the United States faithfully observes this Communique and shows a solemn, sincere, and responsible attitude.

Following the announcement of the China-US Communique, there were reactions from all over the world. The absolute majority welcomed it. In addition, the reaction of the US mass media by and large was favorable. However, in the United States as well there are some pro-Taiwan forces and, no surprise, when this Communique was announced they began clamoring against it. Worth noting is that a very small number of government sources were distorting the Communique during the talks. For example, a certain person was saying that the United States would resolve the issue of arms sales to Taiwan. However, this is against not only the spirit but the letter of the China-US Communique. It is a distorted interpretation of the Joint Communique. The efforts that China makes for a peaceful resolution of the Taiwan issue is of a different quality than the issue of US arms sales to Taiwan. It is precisely because China is adhering to this point that it has been tenaciously continuing negotiations with the United States. The result is that it gave rise to a result that separated both parties. As we have announced repeatedly to this day, China’s efforts for a peaceful resolution of the Taiwan issue is entirely China’s domestic affair, and China will not accept any external interference. We cannot make a commitment to any country on such an issue.  Some US government sources have stated the view that the China-US Communique would have to be subordinate to the Taiwan Relations Act, but this is even more of a distortion. However, this proves that, so long as the Taiwan Relations Act exists, it will be impossible to completely remove the dark cloud over the China-US relationship. Its existence will be a dark influence on the development of China-US relations from now on as well. Of course, it will not be easy to resolve this at once. However, China thinks that the US president’s authority in how to handle the Taiwan Relations Act is considerable.

Generally speaking, China attaches great importance to the development of relations with the United States. The China-US relationship is not only one of having the common interest of jointly dealing with the Soviet Union’s policy of hegemony and expansion. It is not only that. For China and the United States – two great powers -- developing friendly relations in many fields is in the interests of both countries. It is also a plus for global peace and stability. Truly, we have put a great amount of effort in negotiations with the United States to reach agreements and avoid setbacks in the relationship. While safeguarding the basic principle of maintaining our country’s sovereignty, China under that principle has given full consideration to relations with the United States and, in that, expressed China’s flexible attitude. Accordingly, at present, the Chinese side hopes that the US side also attaches importance to the China-US relationship and faithfully observe that to which it clearly committed in the announced Joint Communique. Both sides have agreed to keep in contact regarding the issue of the Communique’s detailed implementation.

Prime Minister Suzuki: I have heard about policy on US-China relations, which are of the greatest importance for global peace, stability, and prosperity. Concerning your handling of the issue of arms sales to Taiwan, too, I would like to express my respect on hearing of the pains taken to tenaciously negotiate, based on the overall situation, while safeguarding your principles.

3. Taiwan Issue, Japan-Taiwan Relations

Premier Zhao: I would like to take this opportunity to touch on the issue of Taiwan. The Taiwan authorities resist the position that China has set forth on the peaceful resolution of the Taiwan issue. In order to escape from their situation of international isolation, for the past several years they have been increasing their activities in Western countries. Taiwan says that is it advancing working relations, but it has been seeking to create “Two Chinas” in various ways. In so doing, Taiwan has been trying to destroy the normal and friendly relations between us and those countries. One example is the Netherlands selling submarines to Taiwan, which brought about a downgrading of relations between China and the Netherlands. The Chinese government hopes that Western countries will heighten their vigilance against Taiwan’s activities.

Relations between Japan and Taiwan, too, are an important issue of principle in the China-Japan relationship. If the Chinese and Japanese sides strictly observe the Sino-Japanese Joint Statement and agreements concerning Taiwan and handle the issue appropriately, we can avoid disadvantage in the China-Japan relationship. Also, I think that the Japanese government, too, is taking notice of this.

Prime Minister Suzuki: Regarding relations between Japan and Taiwan as well, Japan and China have agreed and confirmed the principles of the Joint Communique and the Treaty of Peace and Friendship and have been putting them into practice to this day. Relations between Japan and Taiwan are those of personal exchanges, economic exchanges, and such. Since then, they have been aspects in which they have been quantitatively growing. There are some people with various ways of thinking, but relations between Japan and China are qualitatively based on the principles of the Joint Communique for the normalization of relations between Japan and China and the Treaty of Peace and Friendship. I confirm this again on this 10th anniversary milestone and, at the same time, in regard to personal and material exchanges, ask for the Chinese side’s understanding of it as a real issue.

4. Japan-US Relations

Prime Minister Suzuki: As I said in Tokyo in regard to relations between Japan and the United States, the Japan-US relationship is the axis of Japanese diplomacy. As I said to you yesterday as well, Japan has made efforts for its postwar reconstruction as a peaceful country and adheres firmly to the policy, based on a national consensus, of having the minimum defensive capability for its own defense but not becoming a military power. Therefore, in the event of an external invasion against which we cannot defend ourselves, we firmly hold to the Japan-US security system maintained within the Japan-US Security Treaty. In that sense, Japan and the United States, sharing political and economic values, as well as liberal and democratic ones, are in an inseparable relationship. This Japan-US Security Treaty system, then, serves as a deterrent force for Asian peace and stability as well as against some potential threats, and it has a very important significance for Asian peace and stability. In regard to such close relations between Japan and the United States, I think that they can be compatible with the unwavering relations of friendship and cooperation between Japan and China on the one hand and, also, that making them compatible contributes to the peace and prosperity of Asia and the world.

Premier Zhao: Prime Minister Suzuki, I understand what you have said just now regarding the close relations between Japan and the United States, including the security treaty. Establishing long-term and stable relations of friendship and cooperation between China and Japan will not effect the friendly relations between Japan and the United States.

I agree with your view and think it compatible.

5. Korea Issue

Prime Minister Suzuki: Recently, President Kim Il Sung of North Korea, the president of the Democratic People’s Republic of Korea [DPRK], visited China. Japan, for its part, considers the peace and stability of the Korean peninsula as having a great influence on the peace and stability of Asia. Accordingly, what we consider most desirable would be peaceful unification achieved not by a relationship of confrontation between North and South Korea but by talks. How does your country consider this issue? Also, frequently, and recently as well, you said that a southward advance from North Korea is not possible. I would like to hear your view on that point.

Premier Zhao: President Kim Il Sung’s visit to China was for promoting and strengthening the friendly relations between China and the DPRK. It was also because President Kim wished to see the changes that have taken place in recent years in China. Both sides took the opportunity of the visit to China to introduce each other’s domestic situation and to engage in an exchange of views on the international situation.

The relationship between China and the DPRK has always been a good one. Both sides are satisfied with the development of bilateral relations. President Kim Il Sung expressed a supportive attitude regarding China’s present direction, policies, and 12th National Party Congress. Our side, too, resolutely supported the concept for peaceful reunification that President Kim Il Sung put forth for the reunification of Korea. We also repeatedly expressed support for his reasonable position that the United States should withdraw its military from South Korea.

There are grounds for this, but I will tell you that what most interests the DPRK is domestic construction. They are putting effort into the development of their own country’s domestic economy and improving the people’s livelihood. They have put forth two grand construction projects for domestic economic construction. One is the development of coastal areas and developing agricultural production. The other is to develop DPRK strength in developing domestic non-ferrous metals. I also think that they wish to reduce the burden on both the North and South brought on by their military confrontation and reduce the tensions between the North and South. Also, they hope for the United States to change its attitude and not obstruct their achieving these goals. They by no means want war and have no intention of a southward advance. Their desire for peace is credible.

To my way of thinking, so long as South Korea’s Chun Doo-hwan does not provoke things, I think that the stability of the Korean Peninsula can continue. In connection with this issue, I would like to say that the United States should change its position of not having contacts with North Korea. I think that if the United States changed the position it has had to date, it would be advantageous to a stable state of affairs on the Korean Peninsula and to development. If that happened, I think that the DPRK would put forth reasonable conditions. We would like to make proposals and recommendations to the United States, but the United States seems not to listen. It would be desirable if you and the Japanese government could make some approach to the US side.

Prime Minister Suzuki: Regarding this issue, here is basically what I think. My perception is that there is a balance of military force between the South and the North, including, for the present, the US troops stationed there, and that peace on the Korean Peninsula has been maintained due to that balance. Both the North and the South are considerably straining to maintain this balance. In improving the people’s livelihood, I think it very unreasonable to throw resources into military buildup  that should go into economic development.  Such foolishness should be stopped. I think that talks should take place between the South and the North to reduce military power to a low level while keeping the balance.  Also, I think that, because the North’s letting the Soviet Union use its naval ports and other facilities provokes the United States, it should stop it. In order to turn this relationship of the South and the North, which is one of confrontation and opposition of forces, to peaceful unification and coexistence through talks, it is necessary that the United States and your country each exerts influence and create such an environment and conditions. Japan, too, would like to cooperate as much as possible on such a matter.

Premier Zhao: The DPRK is an independent country and, as we have said many times to date, it takes an independent position in regard to the Soviet Union as well. As far as China knows, the Soviet Union does not have a great deal of influence over the DPRK. You mentioned the Soviet Union using DPRK naval ports but I think, as far as we know, that is not true. This issue is not a sensitive one for the United States alone. If we saw that, we could not help but be concerned.

Prime Minister Suzuki: I would like to touch on the issue of economic cooperation. There is a request to Japan from the Republic of Korea [ROK] for economic aid. In regard to this, it is absolutely unacceptable that economic cooperation from Japan be used for such purposes as military buildup. Japan prohibits arms exports. We have the Three Principles on Arms Exports. Our position as a peaceful country is that we do not export arms or provide weapons technologies. Concerning economic cooperation, we hold firmly to the basic policy that we do not engage in economic cooperation that would be directed toward the strengthening of military power. Japan’s policy, not only for the ROK but for every country, is that economic cooperation must be useful for developing the economy and improving the people’s livelihood, thereby contributing to global peace and stability.

In regard to the ROK as well, we have made it clear that economic cooperation cannot strengthen security. We have received various concrete requests from the ROK and are now examining them.

Premier Zhao: Does your country have economic dealings with the North?

Prime Minister Suzuki: There is private-sector trade and commerce. Due to sluggish economic conditions in the past year or two, however, past debt has not been assimilated and interest has not been repaid as promised. It is a fact that the pipeline for new trade and commerce has been narrowing.

Premier Zhao: China hopes that Japan develops economic dealings and cooperation with the DPRK.

Prime Minister Suzuki: North Korea is in considerable economic difficulty, affected by the global economic recession, and its finances also seem to be suffering, but was there concrete movement forward on economic cooperation or the providing of aid for economic cooperation, technical cooperation or such when President Kim Il Sung visited China?

Premier Zhao: We did not touch on specific issues. However, the intermediate long-term trade agreement ends this year, so we signed a new long-term trade agreement. This one nearly maintains the level existing until now and, as until now, we will provide oil and coke. When I visited the DPRK in December last year and this time, too, the DPRK side said that the domestic economic situation was good and that the would make no new or particular request of the Chinese side. Even the signed intermediate trade agreement was not signed during President Kim Il Sung’s visit to China but a little before then. On the whole, exchanges, including trade and cooperation, are maintained at their level to date. We have neither decreased or increased them.

6.  Middle East Issue

Prime Minister Suzuki: That the state of affairs in the world is showing such turbulence is due in large part to the fluidity of the situation in the Middle East. For Japan, in the Middle East there are relations with the Gulf countries and our relations with the largest oil-supplying area. We, too, are concerned about the situation in the Middle East and sincerely hope for its peaceful resolution. Also, in regard to to peace in the Middle East, we are making every effort in making contact with representatives of your country as a member of the United Nations Security Council. Such things as the large-scale massacre of innocent people in Lebanon, in Beirut, are absolutely unforgivable acts from a humanitarian viewpoint. Our country, too, condemns them and call for the immediate withdrawal of Israeli forces from west Beirut. Our country thinks it absolutely necessary, in exchange for recognizing Israel’s right to exist, to recognize the right of the Palestinian people to self-determination and to the establishment of an independent state. We are taking every opportunity to make an appeal for this to the United States as well.

Premier Zhao: I praise your stated position and attitude on the Middle East issue. Israel, in their barbaric invasion of Lebanon, in cruelly massacring Lebanese and Palestinian civilians, attempted to wipe out the efforts of the Palestinian Liberation Organization [PLO] and to destroy completely the Palestinians’ righteous cause. Palestinian forces of national liberation thereby suffered a setback, but Israel’s scheme absolutely cannot be realized.

We think that the core of the Middle East issue is the Palestinian issue. So long as Israel does not withdraw from the territories of Arab countries occupied in 1967 and so long as the Palestinian people are not granted the right of national self-determination, it will be forever impossible to resolve the Middle East issue. The key to resolving this issue lies in changing the policy that the United States has adopted toward Israel. It is the United States abandoning its policy of supporting and accepting Israel that would make possible Israel changing its policies of invasion and expansion. So long as Washington does not change its policy of supporting and accepting Israel’s invasion, it will not be possible to resolve the conflict between the United States and the Arab countries, nor will it be possible to eliminate the opportunities for the Soviet Union to take advantage of the situation and attempt to pursue there a policy of expansion. Most of the Arab countries now have expressed the position of wishing to resolve the issue on a reasonable basis. I think that this is a golden opportunity. The key to this issue lies in the United States putting pressure on Israel.

The proposal for a resolution of the Middle East issue, set forth recently at the conference of Arab countries in Fez, Morocco, is an entirely reasonable proposal. It not only expresses the unity of the Arab countries, but it is something realistic, practicable, and which should receive the serious consideration of international society. I would like you and others in the Japanese government to exercise your influence and urge the West, particularly the United States, to support the position and proposal put forth at the Fez Conference.

7. Conclusion

Prime Minister Suzuki: The past two days of talks have been fruitful. I am happy that we reached consensus on many issues.

Premier Zhao: I completely agree with your assessment.

III. Meeting between Suzuki, Deng Xiaoping

September 28, 10:05 – 11:35

1. Overview of Japan-China Relations

Senior Leader Deng: Prime Minister Suzuki, it is very significant that you have visited China in this monumental year, the 10^th anniversary of the normalization of relations. That is to say, the normalization of relations is something for the people of our two countries to commemorate. It is regrettable that I was not one of those involved at the time in the normalization of relations. At that time, two men -- Prime Minister Tanaka and Foreign Minister Ohira -- played leading roles. Prime Minister Suzuki and Foreign Minister Sakurauchi also at that time made great contributions within the party. I was involved at the time of the signing of the China-Japan Treaty of Peace and Friendship.

I would like to thank then Prime Minister Tanaka and Foreign Minister Ohira on normalization of relations between China and Japan. Both you, as chairman of the Liberal Democratic Party [LDP] General Council, and Foreign Minister Sakurauchi, as chairman of the LDP Policy Research Council, contributed. Thank you. Furthermore, I also thank those who made efforts for friendship between China and Japan, including Mr. Fujiyama, Mr. Okazaki, and Mr. Furui. There are many more persons than we can count who made efforts in this area. After you return home, please give our regards and appreciation to Mr. Tanaka and the widow of Mr. Ohira. Also, please convey our cordial good wishes and sincere greetings to Mr. Fujiyama, Mr. Okazaki, and Mr. Furui. We thank these gentlemen. (Wang Xiaoxian, director, Japanese Affairs Division, writes a memo.) Please convey my gratitude as well to Mr. Nikaido, who played a very active role at that time as chief cabinet secretary.

Prime Minister Suzuki: I will certainly convey your kind words to each of my seniors. Everyone, without a doubt, will be happy to hear it.

Senior Leader Deng: Also, please convey our greeting to Mr. Fukuda and Mr. Sonoda, who were involved in the concluding of the 1978 China-Japan Treaty of Peace and Friendship.

Prime Minister Suzuki: I understand. I will make sure to tell them.

I am deeply grateful, Senior Leader Deng, for your great efforts made at that time for the conclusion of the Treaty of Peace and Friendship between Japan and China. Also, I still clearly remember how the Japanese people expressed their enthusiastic welcome when you came to Japan for the signing. On my visit to China this time, the day before yesterday and yesterday I engaged in a frank exchange of views with Premier Zhao on the Japan-China relationship and the international situation. I am very happy that we were able to have such substantial and fruitful exchanges of views that we went over the planned time.

I met Premier Zhao at Cancun and in Tokyo in May, so this was my third time, but I feel as though I have known him for a long time. In China there is the term “old friend.” Truly, I have come to have this feeling of closeness to Premier Zhao.

Premier Zhao is an expert on economic issues, but he also has great insight as well on international and other issues. He also has a warm personality. From Japan’s position, too, I am happy that China has chosen such an exemplary premier. From now on, I hope, in speaking closely and directly with Premier Zhao, to be able to smoothly solve difficult issues, no matter what kind they are.

Senior Leader Deng: We have done some important things in the past few years (note: reference to the issues of new cadres succeeding old ones and choosing young officials). Our generation is in fair health but, after all, we have reached the age of departing this world. Accordingly, there is a great need to have persons who are young and healthy compared to us work on the front line. I am having Hu Yaobang and Zhao Ziyang do more and more of the work. You will meet General Secretary Hu Yaobang a little later. I believe that you two will soon become friends.

[TN: line through page, possibly indicating remarks of Prime Minister Suzuki cut]

Senior Leader Deng: As you are all aware, this is the first time we brought up relations between China and Japan (at the 12^th National Party Congress). What I would like to say regarding the China-Japan relationship, which I have also said many times before, is that “relations between China and Japan and between the Chinese and Japanese people will continue to be friendly for generations to come.” This latest National Party Congress confirmed that this friendship between China and Japan and between the Chinese and Japanese people is now our long-term national policy. There are five years between this National Party Congress and the next one, but this national policy is not one for only five years. For generations to come is not a period of 5, 10, 20 or 50 years.

Prime Minister Suzuki: It is as you say, Senior Leader Deng. On this visit to China, I have said to the Japanese people and press that, on the basis of the strong friendship built up between Japan and China these past 10 years, we must develop cooperation between our two countries in the 1980s and in heading toward the 21^st century. That is, I said that I am visiting China with the feeling of building unwavering friendship through plentiful exchanges and would like to talk with Chinese leaders and confirm with them those relations of friendship and cooperation between Japan and China. Accordingly, I completely agree with what you have just now said.

Senior Leader Deng: The way of bringing forward a proposition on the China-Japan relationship, as we just did, is bringing it forward on the basis of the practice of the past 10 years. China is a member of the Third World and is emphasizing concert and cooperation with the Third World. However, in relations with other regions, we are putting cooperative relations between China and Japan first. This is not only in line with the desires of both people; it is also in accord with their interests. Moreover, in the relatively major relations for us in the past 10 years, that is, relations between China and Japan, China and the United States, and China and the Soviet Union, have been, those between China and Japan have been, as expected, good ones. Of course, our views are not the same on each and every issue. This is normal. Issues like the textbook issue are probably going to happen in the future as well. This issue was solved by the efforts made on both sides. When issues occur in the future, let us continue to solve them in a spirit of mutual understanding.

Prime Minister Suzuki: It is as you said, Senior Leader Deng. The honeymoon period in the Japan-China relationship has ended, and we have have entered a mature era based on mutual trust. In the future, exchange and partnership will proceed in both politically and economically, across a broad range of fields. Among them, surely, there will occur ripples – small differences in opinion and conflicts of interest – and this would be natural. However, as you said, if our two countries resolve them by talking to one another on the basis of mutual trust, there will be nothing that we cannot resolve. I believe that forming a relationship of coexistence and co-prosperity is in the interests of the people of both countries and can contribute to the peace and prosperity of Asia and the world.

2. China’s Domestic Politics

Senior Leader Deng: There have been discussions these past few years on whether or not China’s political situation is stable or not and, although the policies that we have now adopted are good, whether or not they could be continued in the future. The 12th National Party Congress has further pushed forward a resolution of such issues, resolving that of the aging of national leaders and having the younger generations work on the front line.  However, we will have to continue to devise solutions  for this issue. Over 60 percent of the new Central Committee is under the age of 60. However, in the future we should further increase their proportion and elect persons in their 40s and 50s to the Central Committee.

Prime Minister Suzuki: I sincerely congratulate you on the success of the recent 12th National Party Congress. (Senior Leader Deng: Thank you.) Japan also sincerely congratulates China for establishing a system of the government and the people together working towards its goals, in particular strengthening the organization and system, decisively carrying out the rejuvenation of personnel, and unanimously agreeing on the Four Modernizations.

Senior Leader Deng: At the 12th National Party Congress, and I think that everyone is aware of this, we confirmed the policies agreed upon and implemented since the Third Plenary Session in 1978. Concerning foreign policy as well, the current National Party Congress repeatedly stated the policy that we established and implemented these past few years. Of course, there are small changes in the way of instituting them.

3. Japan-China Economic Relations, China’s Economic Plans

Senior Leader Deng: The development of China-Japan relations is relatively good. However, it is not that they are entirely without issues. Nor is it that we are completely satisfied with the state of development in China-Japan relations. For example, in the area of economic cooperation, I hope that we do more. The field for that is wide. Those in which China and Japan should draw on each other’s strengths and make up for their shortcomings seem almost too many. China has resources; Japan has technology. If our two countries cooperated, it would be tremendous. It is not enough for us to think of economic cooperation between China and Japan from a political angle, nor is it enough that this cooperation be only intergovernmental cooperation. Private-sector cooperation is also necessary.

Prime Minister Suzuki: I agree. China has announced a grand plan for quadrupling agricultural production by the year 2000 and said that it will be achieved within the policy of the Four Modernizations. I believe that there will be many difficult problems in achieving that. Japan would like to the extent possible to cooperate completely. Also, China’s understanding and cooperation are necessary but, speaking in terms of the goal of China’s great construction, there are limits to intergovernmental yen credits, economic cooperation, and technical cooperation alone. Cooperation is surely necessary on a private-sector basis in such areas as economic cooperation, technical cooperation, business management, business administration, investment, joint ventures, and factory modernization. I have already spoken of this with Mr. Doko and Mr. Inayama, but I would like to ask by all means for the strengthening going forward of private-sector economic cooperation and exchange between Japan and China. Also, I would like to ask of Premier Zhao as well the improvement as quickly as possible of the environmental conditions, such as a tax treaty and an investment protection agreement, that facilitate investment and technical cooperation.

Senior Leader Deng: The thought of quadrupling agricultural production is something that took shape when I was talking before with Prime Minister Ohira. (After confirming the date with those around him) That was when I spoke with Mr. Ohira in December 1979. He asked me what was the meaning of the Four Modernizations. At the time, although we we speaking of making efforts for the Four Modernizations, it was not specific in terms of what were the specific goals. Reflecting on it, I thought that Mr. Ohira’s question raised a very important issue. I then expressed the thought of a national average income of 1,000 US dollars by the end of the century. The present level is 250 US dollars. However, even 1,000 US dollars is low in comparison to the global average. Even at that time, it was at the level of a comparatively good living standard in China. Later, according to economic statistics and calculations, this goal became possible. That we have now lowered the goal slightly to 800 US dollars is simply because the population at the end of the 20th century will be 1.2 billion, not today’s one billion people. At this National Party Congress, we confirmed this strategic policy after having fully considered this issue. Accordingly, I am thankful to Mr. Ohira for making us think about this issue.

4. Revival of Militarism Issue

Senior Leader Deng: Concerning the China-Japan relationship, in regard to political issues, I hope Prime Minister Suzuki, that you, the Japanese government, and future governments pay attention to the inclination toward militarism. We do not suspect the Japanese government of having such an inclination. That is to say, it is because Japan’s constitution has clear provisions. However, and this is not the overwhelming majority, there are persons who are thinking of a revival of militarism. That Yukio Mishima incident of a few years ago was definitely not about him alone. It reflects an inclination and expresses action of a certain politics.

What we regret is old politicians trying to put up a monument to Manchukuo and the like. What in the world is that?

Prime Minister Suzuki: There has just now been an expression of concern over whether or not the inclination toward militarism is growing in Japan. This is a good opportunity, so I would like at this time to speak frankly about it. The Japanese people, reflecting deeply on Japan’s prewar course, and with no excuse for the tremendous damage it caused to neighboring counties, keenly feel their responsibility and reflect on it. The Japanese people, too, were made to suffer greatly.

Our country established our Constitution in thinking that we must not repeat the mistakes of the past.　We have a defensive capability, the minimum necessary for defense, but we do not have a military capability that would threaten neighboring countries. Also, we have expressed our firm determination that, even in becoming an economic power, we will not become a military power. Accordingly, the overwhelming majority of the Japanese people, based on the spirit of the Constitution, is advancing in the direction of contributing to world peace through economic and technical cooperation with the world. As a person responsible for Japan, I clearly say that a revival of militarism is by no means possible and absolutely will not happen.

(Further, at the end of the meeting, Prime Minister Suzuki again said in regard to the Chinese side’s concern over a revival of Japanese militarism that he wished them to understand that such a revival was by no means possible and that Japan, on the basis of the Japanese people’s consensus, was determined to walk the path of a peaceful country.)

5. Sino-Soviet Relations

Senior Leader Deng: Everyone here is interested in the Sino-Soviet relationship, so I will talk about it. Let me be clear, though: there is no dramatic change in Sino-Soviet relations (Huang Hua and Wu Xueqian, present, laugh). Our position, to which we have always adhered, is that we consider Sino-Soviet relations from the perspective of global strategy. The heart of the matter in relations between China and the Soviet Union, that is the obstacle to the bilateral relationship that should be removed, is Soviet hegemony. To put it another way, the Sino-Soviet relationship is not only the issue of the Sino-Soviet border. Setting aside the entire world and taking up only nearby areas, there are acts of naked Soviet hegemony in Cambodia and Afghanistan. Between China and the Soviet Union, too, the situation is not one of a conflict over a few square kilometers on the border. The situation is one of the Soviet Union stationing 1.8 million troops along the border and one of their deploying one third of their ICBMs in the Soviet Far East. ICBMs are pointed at Japan and the United States as well, but they are also a direct threat to China. When we were babies, when we were in elementary school, the teachers and textbooks told us that the map of China was in the shape of a mulberry leaf. It is different now. With Outer Mongolia’s place cut out, the content of China’s textbooks has also changed.

Concerning Outer Mongolia, it has to do with the treaty that Chiang Kai-shek concluded. Of course, we are not thinking to seek this treaty’s revision. However, it is not right for the Soviet Union to station troops in Outer Mongolia.

China and the Soviet Union are, of course, having talks about having talks. It would not do to completely not be in contact in state-to-state relations. However, the Soviet Union must do something in order to normalize Sino-Soviet relations. For example, by withdrawing one million troops from the Sino-Soviet border and Outer Mongolia or by taking some measure in Afghanistan or Cambodia, the Soviet Union should show at least a little relaxation in their policy of hegemony.

However, the question is whether or not the Soviet Union will implement such measures.

Prime Minister Suzuki: I thank you, Senior Leader Deng, for directly talking to me about Sino-Soviet relations.

6. Hong Kong Issue

Prime Minister Suzuki: I would like to take this opportunity to ask you about something. Britain’s Prime Minister Thatcher visited Japan before her visit to China and told me that she wished to talk with China’s leaders about the Hong Kong issue. What happened is that I advised her, when meeting you, to speak directly concerning this issue. When you met Prime Minister Thatcher, you two talked about the Hong Kong issue, but what thoughts did you express?

Senior Leader Deng: I clearly told Thatcher that we would definitely resume sovereignty over Hong Kong and that this could not be a subject of discussion. However, the issue of what to do about Hong Kong’s society, politics, and system, that we could discuss. Also, there would be no change in present conditions in the transition period of 15 years between now and 1997. In addition, I clearly told Thatcher that we did not intend to change Hong Kong’s social system after the resumption of sovereignty and that we would maintain Hong Kong as a free port and as a center for international finance. Furthermore, concerning the laws, we could apply the existing ones. We would like to hear Britain’s thinking on what to do about policy in the next 15 years. The Chinese and British sides agreed to start consultations on this issue at once at the working level. I clearly told Thatcher that a period of one year for these consultations would be the most desirable and that it would not do to have them any longer than for two years at most. I then said that no more than two years later we would announce the resumption of sovereignty over Hong Kong in 1997.

Thatcher responded to this in requesting that we not make public at present our resuming sovereignty over Hong Kong, so we agreed to this.

Prime Minister Suzuki: I see. We, too, are closely connected to the Hong Kong issue, so it is a matter of great interest to us. Hearing what you said is useful information. Also, I would like to keep what I have heard secret.  

Senior Leader Deng: I would like to convey this to Japanese businessmen. Even after the resumption of sovereignty in 1997, we have no intention of harming the corporate or financial interests of Japan, the United States, Britain or others.

Prime Minister Suzuki: Thank you.

IV. Meeting between Suzuki and Hu Yaobang

September 28

1. Overview of Japan-China Relations

General Secretary Hu: I bid you a warm welcome. It is a pleasure to meet you, Prime Minister. Ten years ago, you and Foreign Minister Sakurauchi, along with Mr. Tanaka, Mr. Ohira, and Mr. Nikaido, made great contributions to normalization, so I particularly welcome you.

Prime Minister Suzuki: I have visited twice since May 1979. The previous time, I met Vice Premier Deng Xiaoping and made an inspection tour of such places as Dalian, Shanghai, and Guilin.

General Secretary Hu: Senior Leader Deng and Premier Zhao have already spoken, so there is nothing particular that I would like to say. There is just one thing that I would like to say, which is to repeat again the following thinking that government leaders and the people have. China and Japan are two great peoples of the Far East and the world. Peaceful cooperation is in the interest of both sides, and  it would be to the detriment of both sides not to engage in it. It also brings well-being to the world and to generations to come in our two countries. Accordingly, the last 10 years of friendly government and private-sector ties are of global significance and surpass both the scope of China and Japan and the present. It is not that there are not a few problems or troubles in getting along well together for generations to come. Thinking back, at the time of the normalization of relations 10 years ago, some comrades in China were opposed to it and would be offended merely at the sight of Japan’s flag. In the 10 years since then, we have in all that time instructed the Party and cadres that revanchism is wrong and given the masses guidance that China will not seek hegemony even after becoming powerful. From the position of wishing for friendship with Japan, I hope that you give instruction so that the broad masses of the Japanese people are not influenced by the narrow views of some people and do not engage in militarism. I would like to propose this not only for Japan and China but for the world.

Prime Minister Suzuki: Ten years ago, we realized normalization by following the guidance from a high position of the late Zhou Enlai to “seek common ground while putting aside differences.” Looking back on the friendship and relations of trust and cooperation since then, we have achieved great development. I think that, in 2,000 years of history, we may never have had so wonderful, unwavering, and mature a relationship as we have now. I think that developing Japan-China friendship for the 21^st century on this basis is our mission and that it is a great undertaking that will lead to peace in Asia and, further, the world. With such a feeling, I congratulate you on the success of the 12^th National Party Congress. I highly appreciate Your Excellency’s having obtained the top post of general secretary and having strongly started a new leadership system. In the political report of the National Party Congress was language that the development of the relationship between Japan and China is not only in the mutual interest of our two peoples but that it contributes to the peace of Asia and, further, the world. Knowing that this has been emphasized, I feel strongly about it. In that report is expressed the concern that “in some parts of Japan, there are attempts to revive militarism.” However, I would like to say to you that the overwhelming majority of the Japanese people are doing everything that they can to build a peaceful country that will not repeat the mistakes of the past and will not become a military power. This is the consensus of the people. There will be no revival of militarism.

General Secretary Hu: I firmly believe in the mainstream of the Japanese people. I have read former Prime Minister Shigeru Yoshida’s Gekido no Hyakunenshi [TN:  “A Turbulent History of 100 Years,” published in 1978]. I understood in reading it that the Japanese people have many excellent qualities, that they are a people possessing science and technology, that although political leaders in that history did make mistakes, the Japanese people did not agree with them. Both China and Japan have strong points and shortcomings. Japan has excellent technology, China has natural resources, and Japan-China cooperation has broad prospects.　

Prime Minister Suzuki: Even if there are various difficulties hereafter in the Japan-China relationship, we should overcome them and develop friendly relations. Contacts between our governments are going well and exchanges between our peoples are flourishing. At this time I would like to have Your Excellency come to Japan, see Japan with your own eyes, and understand the thinking of the Japanese people. Representing the Government of Japan, I would like to formally invite Your Excellency to visit Japan.

General Secretary Hu: Thank you for your kind invitation. I really would like to see and learn how things are in Japan.

2. Conversation at Lunch Meeting

(1) Ambassador Katori’s Press Briefing

Prime Minister Suzuki: Yesterday, in meeting some Chinese exchange students who had returned from Japan, I learned of their activities in various fields of China’s society and thought that their prospects were very promising. Along with that, we decided this time to build the Japan-China Friendship Center. I would like to make it a splendid token of friendship between Japan and China.

General Secretary Hu: That would be great. By the way, how is the Japanese dairy industry doing?

Prime Minister Suzuki: Japan is now self-sufficient in milk, butter, and powdered milk. By the way, China has a long coastline. Could you not develop more fisheries? In Japan, fish farming is thriving.

General Secretary Hu: In China, too, we are raising kuruma prawn and sea cucumbers.

Prime Minister Suzuki: Non-ferrous metals are in short supply now, and prices are rising. Chinese has both non-ferrous metal resources and the hydropower resources necessary for their development. Therefore, although their development requires a large amount of funds, both our countries would like to cooperate for the development of non-ferrous metals.

General Secretary Hu: I agree with your thinking. However, this cooperation is probably 20 or 30 years from now and will be for our offspring. I am for joint development of the resources in China if the principle of equality and mutual benefit is observed. Introducing from Japan some of the equipment and, with discussion on both sides, using the output for the offspring of our two countries would be possible.

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Record of Prime Minister Suzuki’s Visit to China and Meetings

Secret No. 69

October 9, 1982

China Division

This record is a summary of the remarks made at the following meetings on the occasion of Prime Minister Suzuki’s visit to China of 26 September – 1 October.

(1) First Summit Meeting, September 26

(2) Second Summit Meeting, September 27

(3) Meeting Between the Prime Minister and Deng Xiaoping, September 28

(4) Meeting Between the Prime Minister and Hu Yaobang, September 28

(Exempted)

Contents

I. First Summit Meeting ...1

(Bilateral Relationship)

1. Overview of Japan-China Relationship ...1

2. Criticism over Textbook Issue, Revival of Militarism … 2

3. Twelfth National Party Congress, Modernization Policy ...6

4. Our Country’s Cooperation on Modernization ...7

5. China’s Economic Situation ...9

6. Promotion of Public Cooperation and Improvement of the Environment ...11

7. Bohai Bay Oil Development ...12

8. Modernization of Existing Factories ...13

9. Oil Development in the Yellow Sea, South China Sea ...14

10. Japan-China Joint Development of Non-Ferrous Metals ...15

11. Sanjiang Plain ...16

12. Japan-China Friendship Center ...17

II. Second Summit Meeting ...18

(International Situation)

1. Sino-Soviet Relations...18

2. US-China Relations...24

3. Taiwan Issue, Japan-Taiwan Relations...27

4. Japan-US Relations ...29

5. Korea Issue ...30

6. Middle East Issue ...35

7. Conclusion ...37

III. Meeting Between Prime Minister and Deng Xiaoping …38

1. Overview of Japan-China Relations ...38

2. China’s Domestic Politics ...42

3. Japan-China Economic Relations, China’s Economic Plan ...43

4. Revival of Militarism Issue ...46

5. Sino-Soviet Relations ...47

6. Hong Kong Issue ...49

IV. Meeting Between Prime Minister and Hu Yaobang ...52

1. Japan-China Relations ...52

2. Conversation at Lunch Meeting ...55

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I. First Summit Meeting (Bilateral Relationship)

September 26 (Sunday), 16:45 – 18:45

1. Overview of Japan-China Relationship

Prime Minister Suzuki: This year is a milestone, exactly 10 years since the normalization of relations between Japan and China. In these 10 years, as a result of the untiring efforts of the governments and people of both countries for relations of friendship and cooperation, we have established today’s wonderful relationship between Japan and China. Truly, today there has been built an unwavering, constructive, and cooperative relationship between Japan and China. This is the fruit of the great predecessors who came before us. I express deep respect to the hard work of those who came before us and, at the same time, I would like us to take this memorable year as an opportunity for us to build a firmer and closer relationship. That, I think, would be to the mutual benefit of the people of our two countries and, at the same time, would contribute to the peace and prosperity of Asia and, further, to the world’s peace and prosperity.

Premier Zhao: With the 10^th anniversary of the normalization of relations between China and Japan close at hand, Prime Minister Suzuki, I welcome you once again on visiting China. I am grateful for enjoying at the time of my visit to Japan in May the entire nation’s warm hospitality.

Truly, as you said, the relations of friendship between our two countries in these past 10 years have achieved great development in a wide range of fields. This is the fruit of the efforts made in common by the governments and people of both countries. I am pleased that the relations of friendship and cooperation between China and Japan have developed to where they are today.

As you know, our country recently held its 12^th National Party Congress. At this Congress, we made clear our country’s independent foreign policy. There has been not the least change in the Chinese government’s policy of developing relations of peace and friendship, equality and mutual benefit, and long-term stability between China and Japan.

2. Criticism of Text Book Issue, Revival of Militarism

Prime Minister Suzuki: I would like to take this opportunity to speak frankly to Your Excellency, Premier Zhao, on Japan’s thinking in regard to the textbook issue.  Recently, we received sharp criticism from your country and various Asian neighbors over some of the wording in our country’s history textbooks. The Government of Japan’s recognition, stated in the preamble to the Japan-China Joint Communique – “The Japanese side is keenly conscious of the responsibility for the serious damage that Japan caused in the past to the Chinese people through war, and deeply reproaches itself.” – has not changed in the least. The Government of Japan, fully listening to the criticism from your country, correcting in the matter of the government’s responsibility, has sincerely implemented measures made clear in the Chief Cabinet Secretary statement and its explanations.

The Education Minister, with the Textbook Approval Council already advising him, would like to take as soon as possible corrective measures in regard to this issue.

Since then there seems to be concern in your country about a revival of militarism among some in our country, but I would like you to understand that the overwhelming majority of the Japanese people reject militarism and are consistently seeking peace. Our country, after the war, reflected deeply on the “error” of prewar Japan and, on the basis of the people’s determination never again to repeat such a thing, established its Peace Constitution. In the preamble to that constitution is the declaration: “We, the Japanese people, desire peace for all time [….] have determined to preserve our security and existence, trusting in the justice and faith of the peace-loving peoples of the world.” From that time until today, we have made peace our nation’s policy, and we will absolutely not become a military power, even if become an economic power. Now, regarding Japan’s defense buildup, our country, along with maintaining the minimum defensive capability necessary for its own defense, adheres to its Three Non-Nuclear Principles. Adhering to such a defense policy, we have made efforts to this day to build our country as a peaceful country. I would like you to understand that the absolute majority of the Japanese people support this and that, on this basis of that consensus, this national policy now and in the future will be immutable. I would like you to understand that, even if there were to be criticism from some, that could not become a force to take Japan’s police in a mistaken direction. Japan, contributing to the peace and stability of the world from the peaceful position of such a Peace Constitution, cannot contribute militarily to the peace and stability of Asia and the world. However, because Japan has a certain degree of economic and technological strength, we are cooperating through this strength, according to the national situation, to promote civil welfare stability, industry, and the economy in developing countries and the Third World. In such aspects, our country would like to play an international role and fulfill its responsibilities.

The Three Non-Nuclear Principles that I just mentioned are “not possessing, not producing and not permitting the introduction of nuclear weapons.” As the only country ever to have suffered atomic bombings, our principle comes from the wish never to repeat the horrors of Hiroshima and Nagasaki.

Premier Zhao: Prime Minister Suzuki, you have brought up the textbook issue, which has certainly greatly disturbed the bilateral relationship, which had been developing without a hitch until now. I am happy to see that, today, this problem has already settled down. Consequently, we have thus been able to welcome your visit to China in a good atmosphere. Also, we appreciate the efforts that you have made to revolve the textbook issue.

China and Japan are neighbors separated only by a narrow strip of water. Between our two countries is a history of more than two thousand years of friendly relations. When I visited Japan, I said, “Opportunities of time vouchsafed by Heaven are not equal to advantages of situation afforded by the Earth, and advantages of situation afforded by the Earth are not equal to the union arising from the accord of Men.” [TN: a saying of Mencius]  Now, as you mentioned, the development of relations between our two countries accords not only with the common wish and fundamental interests of the people of our two countries but is also beneficial to the peace and stability of the Asia-Pacific region. The friendly relations between China and Japan have gone through many twists and turn to develop to the level where there are today. It was no easy thing. It is for that very reason, then, that it is necessary for us without tiring to make new efforts to cherish all the more and devote our energies to those relations, to develop them, and to protect and develop those friendly relations between our two countries and the feeling of friendship between our two peoples.

In the past, Japan inflicted great damage on the peoples of China and Japan by the war of aggression that the Japanese militarists caused, leaving behind wounds difficult to forget. The unpleasant history during this time is nothing more than a short period in the long river of friendship between China and Japan. However, that lesson is deep. I think that we must never repeat such history. In handling relations between China and Japan, we must be forward-looking. However, this does not mean that it is alright to forget the lessons of history, and their being used to willfully falsify history is even more unforgivable. The Chinese government earnestly desires to develop friendly relations with your country and does not wish for even a little harm to come to such relations.

On my previous visit to Tokyo, I said to you that the development of relations between China and Japan should not be effected by the wind and waves of international relations. I would like to make an additional point. Relations between China and Japan still have to overcome various obstacles. I wish to highly appreciate your having repeatedly spoken of protecting the spirit of the Sino-Japanese Joint Statement and for the statement about taking responsibility to make sure to correct the textbook issue. The Chinese government and I, myself, would like to work with your country’s government and with you to protect and develop the friendly relations between our two countries.

3. 12^th National Party Congress, Modernization Policy

Prime Minister Suzuki: Premier Zhao, several months have passed since I saw you in May. Since that time, your country has made a great success of the 12^th National Party Congress. People of the world were paying attention to it with great interest: to the establishment at this congress of a powerful leadership system; to the unanimous adoption of the resolution to strongly promote under this system the policy of the “Four Modernizations” as the fixed line of national policy; and to the establishment by means of this policy of the grand goal of quadrupling the total production value of agriculture and industry by the year 2000 and the working together of the Party, government, and people toward that goal. I highly appraise these points and, at the same time, Japan hopes for their successful realization.

Premier Zhao: Prime Minister Suzuki, you spoke of the 12^th National Party Congress. Holding this congress showed that our country has already entered in a political sense a period of long-term stability. The modernization line and the series of policies, including that of opening to the outside world, which we are now implementing, are an expression of a further guarantee of continuity going forward. At this recent congress, we set forth major lines and policies on the future goals in economic construction until the end of this century for which we are aiming. These lines and policies are not things considered for a moment in order to hold the congress; they are the result of close study and examination over a long period. Accordingly, the holding of the recent 12^th National Party Congress is an expression of China’s entering henceforth a new historical era of fully opening a new path of modernization and construction.

4. Our Country’s Cooperation on Modernization

Prime Minister Suzuki: Japan sincerely hopes for your country’s to achieve the goals of its modernization policy because your country and Japan will derive much mutual benefit from that success. In addition, that would lead to an increase in the stability of Asia’s economies and people’s lives. Your country has many natural resources. Your human resources are also plentiful. Japan has technology and a certain degree of economic strength. Our two countries being in a cooperative relationship on your country’s grand economic construction is, in other words, a way to guide all of Asia’s economic success.

On the other hand, our country would like to engage in cooperation in no way inferior to that of the past 10 years. Also, in so doing, we would like to consult on whether we could engage in cooperation that would be a plus for your country’s development and, from there, arrive at concrete conclusions and cooperate.

Premier Zhao: When I stated the elementary idea of developing economic relations between our two countries on the basis of the three principles of “peace and friendship, equality and mutual benefit, and long-term stability”  at the time of my visit to Japan in May, I had your positive agreement. We completely agree with your words. China and Japan’s further developing economic and technical cooperation under today’s new situation, has broad prospects and is beneficial to both sides.

Prime Minister Suzuki: As you say, Japan and China are in a mutually complementary relationship, particularly in the economic field. I express my complete agreement on the view that we can expect great results if we foster our strengths, make up for our shortcomings, and cooperate with one another. I, too, completely agree regarding the pooling of our countries strengths and weaknesses benefiting the people of our two countries.

Premier Zhao: Now, in our country, new changes are taking place in the economic situation. We have goals and blueprints for the next 20 years. On the other hand, the situation in the world today is still one of economic recession. In such a situation, it is mutually necessary for our two countries to foster its own strengths, draw on each other’s strengths, and make up for our weaknesses. It would be to our mutual benefit. Accordingly, further developing economic and technological cooperation has a particularly important significance and, at the same time, it has a wide range of content.

5. China’s Economic Situation

Premier Zhao: Our country’s economic situation, seen at present, is gradually changing for the better. Since we have implemented in the agricultural villages the policy of the production responsibility system to raise the willingness of villagers to work, the situation in the agricultural villages has been wonderful. Harvests have been good, and this year will also be a bumper year. Great change has also arisen in China’s domestic production of consumer goods. A great change has arisen in the situation of a longstanding lack of consumer goods. If you walk around town and enter a department store, you will understand. In this aspect, one can say that this is the best period for China since the 1950s. Also, what I particularly wish to explain is that such good results have not come at the expense of heavy industry. Heavy industry has been recovering since the fourth quarter of last year. This year, the rate of increase for heavy industry has surpassed that of light industry. As you know, China until the 1980s continuously ran large deficits for several years. This year, we broadly reduced fiscal expenditures and aimed for a basic balance. The outlook is that we will be able this year to achieve a basic balance in these financial expenditures. All this proves that China’s economic situation has had a remarkable turn for the better. Our economy, through the three years of adjustment to date, has already started to have the conditions to start from this point onward key economic construction. Our key economic construction is energy development, the development of transportation facilities, and the development of other resources, including non-ferrous metals.

Also, we are in a good situation of returning to construction in the large-scale plant and equipment introduced since 1980 (later corrected to 1978). For the next 20 years from now, until the end of the century, our key construction will probably be growing day by day, year by year, steadily growing in scale according to plan.

On the other hand, for the next 20 years from now, particularly for the next 10 years, I would like to advance that technical transformation gradually, in a planned way, and on a large scale in regard to our existing enterprises as well. China’s existing enterprises are not only behind in management and techniques, but in equipment as well. In these aspects, too, we want a great deal of equipment, raw materials, and advanced technology.

6. Promotion of Private Cooperation and Improvement of the Environment

Prime Minister Suzuki: As you said, from this point forward China will be seeing great progress in various fields -- production, consumption, and allocation – and various enterprises of every kind, from heavy industry and light industry to small businesses, will have to be moving. Considering this, what is sought in this new era is not only such ways as intergovernmental loans or technical cooperation, but a broader partnership and cooperation of private economic circles. Tomorrow, after the meeting, it will be a pleasure to to sign this year’s loan for 65 billion yen. I would like, as the representative of the Government of Japan, to continue to cooperate as much as possible, but there are limits, naturally, to intergovernmental loans. In any event, because your country’s economy is soon to grow greatly, it is not the case that everything can be provided by cooperation between governments alone, nor is it the case that Japan alone is enough. Accordingly, because China has decided to adopt an open economic policy, it would be desirable to introduce capital and technology from other advanced industrial countries as well and, with that combined strength, to cooperate. Other than that, I think that private-sector cooperation must have a greater weight. In that sense, I think it necessary, and the opinion was put forth the other day by Mr. Doko, to providing the environmental conditions to facilitate investments and joint ventures. I wish to suggest, frankly, that preparing such items as an investment protection agreement, a tax treaty, and other domestic laws and regulations would be desirable.

Premier Zhao: You have mentioned some issues in economic and technological cooperation between China and Japan. I think that an investment protection agreement and a tax treaty are really necessary to promote relations of economic cooperation between China and Japan. Both the Chinese and Japanese sides have done a great deal of work for that, but there are still some issues on which we should agree from this point onward. I think that we should work from now onward for this.

Thus, you have put forth proposals and views on such matters as a tax treaty and an investment protection agreement. I have been very much in agreement on improving the environment to facilitate Japanese corporate investment and joint ventures and have continued working for it. However, time is needed until we succeed completely. China for many years was in a closed environment, so we have little experience in immediately moving ahead.  I would like the Japanese side to trust China. I would like to say that, so long as you sign a contract with China, China will strictly observe it. For China, a contract has a legal effect. I would like you to rest assured on this point.  

7. Oil Development in Bohai Bay

Prime Minister Suzuki: I hear that the prospecting for oil and natural gas in Bohai Bay is going very well. I would like to speed up the exploration in your country and, if possible, dig 9 wells. The 210 million in funding to date is insufficient. There is a proposal to increase this by 400 million to 610 million, and I also approve of it. I hear that a delegation from our side will be put together next month and that the Japan National Oil Corporation and others will have detailed consultations with the Japan China Oil Development Corporation [JCOD]. I would like to do everything possible to make this happen.

Premier Zhao: We put forth a proposal on the 5^th regarding speeding up the prospecting for oil and natural gas in Bohai Bay. After that, with your cooperation, oil companies on both sides have been actively considering it and are now working out a reliable and feasible plan. As far as I know, the exploration has been going smoothly. This is a relatively major item in the economic cooperation between our two countries. Going forward, I would like both sides to work to speed up exploration and quickly make development possible.

8. Modernization of Existing Factories

Prime Minister Suzuki: You mentioned it earlier, but I think that the modernization and renovation of existing factories is a realistic policy. Japan’s Ministry of International Trade and Industry [MITI] in FY1981 conducted with your country a diagnosis on factories. Those results were very good, and there is a plan to double it in FY1982. I think that we should move quickly to implement this as well. As support, we will use a bank loan from the Export-Import Bank of Japan. In such a field as this, I think that the cooperation of private enterprises is really necessary.

Premier Zhao: I agree with you on the technical transformation of existing factories and would like to greatly promote private-sector cooperation. You brought up the corporate diagnosis of the 16 enterprises done to date. Going forward, they should be expanded. Also, recently, our two countries agreed on FY1982 government yen loans and also agreed on the Sino-Japanese Long-Term Trade Agreement. I am pleased with this.

9. Oil Development in Yellow Sea, South China Sea

Prime Minister Suzuki: With mention made on Bohai Bay’s oil, I hear regarding prospecting for oil development in the Yellow Sea and South China Sea that there is also bidding from Japan but that decisions will be made next spring. I would like the enthusiasm of Japan’s companies to be taken into consideration and ask that past performance also be considered and that they be given special consideration.

Premier Zhao: We have heard your thinking regarding the international bidding issue for oil development in the South China Sea and Yellow Sea and have already informed the Ministry of Petroleum Industry. We have called on the Ministry of Petroleum Industry to give consideration to the Japanese side’s view. On the 5^th, as I said, in light of the friendly and cooperative relations between our two countries, I would like to handle this issue with a forward-looking (xiangqian kan) attitude and, if the conditions are the same, I would like to give consideration, of course, to Japanese companies. There has been no change to date in this thinking.

10. Japan-China Joint Development of Non-Ferrous Metals

Premier Zhao: Prime Minister Suzuki, I would like to raise at this time an issue and ask for your consideration. You need not answer now. I would like you to return to Japan and consider it. China is a country with a relative abundance of non-ferrous ores but, at present, development of these resources is insufficient. The development of these resources is, of course, highly significant for China’s modernization. It is important for your country as well.  These resources are almost all in the Northwest and Northeast. In general, their development takes a long time, with a great deal of funds invested and much electricity required. Large quantities of electricity are consumed in the development of non-ferrous metals. However, in the Northwest and Southwest are abundant hydropower resources. I would like to raise the issue of whether or not there exists the possibility to develop non-ferrous metals, necessary for both China and Japan, other than for the joint development of energy, in order to develop long-term and stable relations between China and Japan. At present, our two countries have carried out fruitful cooperation on the joint development of energy and have long-term plans. I wonder how it would be if both sides were to consider together this cooperation in regard to the joint development henceforth of non-ferrous metals. This is no small undertaking. The developing of non-ferrous metals is often accompanied by the development of hydroelectricity. I am not asking for an immediate answer, but I raise this issue and would like you to consider it.

Prime Minister Suzuki: Regarding the development of non-ferrous metals, I hear that a development survey is being conducted on a government basis of the Anqing Copper Mine. There are not enough of these non-ferrous metals in the world. I hear that, in a certain country, they are being stockpiled as they are militarily indispensable. Regarding their development, let us study this fully going forward, not only between governments but also in various possible ways.

11. Sanjiang Plain

Prime Minister Suzuki: Premier Zhao, I would like to hear your ideas related to agriculture. Japan, too, is now proceeding with the testing of the Sanjiang Plain’s development as technical cooperation. It is considered an effective project for future increased food production in your country and for agricultural promotion. However, I wonder whether China has priorities in its overall future long-term planning and would like to ask what would be those priorities. On that basis, I would like to examine what kind of cooperation Japan can do.

Premier Zhao: So far as I know, I hear that persons from various fields have come from your country and have already been in contact with the Ministry of Agriculture. The Chinese government is positive on the development of the Sanjiang Plain. Also, we are interested in cooperation with Japan on this project. I would like to leave discussion on the specific issues to the responsible departments. At the time of Agriculture Minister Tazawa’s visit to China, he met and had consultations with the Chinese minister of agriculture. Both sides expressed interest at that time.

12. Japan-China Friendship Center

Prime Minister Suzuki: Speaking for Japan, what I would like to say in sum is that I think mutual understanding at every level is important for further strengthening and developing cooperative relations henceforth with your country. From that viewpoint, engaging in exchanges to a large degree of exchange students, missions, and the like is important. There are many exchange students and the like in Japan. There is increasing momentum from having realized – as a project for the 10th anniversary of the normalization of relations – the construction of the “Japan-China Friendship Center” to welcome these persons and as a base for their activities in Japan. I also think that, because this is a good commemorative project, the government would definitely like to promote it, and I ask for your understanding.

Premier Zhao:  I agree with your proposal, Prime Minister Suzuki. I would like to promote it for success.

II. Second Summit Meeting (International Situation)

September 27, 9:30 – 11:45

1. Sino-Soviet Relations

Prime Minister Suzuki: Secretary General Hu Yaobang spoke at the recent 12^th National Party Congress regarding relations with the Soviet Union. He said something to the effect that, if the Soviet side improved its attitude and really adopted various improvement measures, then he was prepared to improve relations between China and the Soviet Union.  I would like to start by asking about this issue.

Is there a change in China’s Soviet policy? He has spoken of what would happen if practical measures were taken, but what are practical measures? Also, is it possible that the Soviet Union would take such measures? Will the Soviet Union respond? I would like to ask regarding your country’s overall recognition of the Soviet Union.

Premier Zhao: I explained in Tokyo in May regarding the Chinese side’s thinking on the overall international situation. I do not think that the international situation has basically changed since then. In our Tokyo meeting, we agreed in the recognition that the present international situation was unstable, tense, and difficult. After my visit to Japan, there arose the issues of Israel’s invasion of Lebanon and the massacre of Lebanese and Palestinians. In Tokyo, we discussed with each other how, even though not one of the previous issues had been resolved, new clashes were occurring without cease. The developments of the situation since then proves this more and more. The Chinese government recognizes that, even now, the basic cause for the tense and unstable international situation is the struggle for hegemony between the superpowers. Its basic structure, after all, is one of Soviet offense and US defense. The main threat to world peace and stability is Soviet hegemony.

In order to oppose hegemony and defend world peace, there has been no change in our basic policy of uniting with the countries of the Third World and joining together with countries of the world, including the United States, to restrain Soviet hegemony.

You touched on China’s relations with the Soviet Union, but General Secretary Hu Yaobang has already made China’s position clear at the 12^th National Party Congress.  China’s basic position is as follows:

(1) The Soviet Union’s policy of pushing ahead with hegemony around the world has still not changed. Thus, our policy of opposing Soviet hegemony has not changed even a little.

(2) Maintaining and developing normal state-to-state relations on the basis of the Five Principles of Peaceful Coexistence is also the consistent position of China.

(3) To date, the Soviet authorities have repeatedly expressed their desire to improve Sino-Soviet relations. We have said that one must look at actions, not words, and so it is necessary for both sides to come into contact on this issue. I will say to here that it has been decided that, on the 4^th or 5^th of next month, the Soviet Union will send Deputy Foreign Minister Ilichev to Beijing and that there will be an exchange of views on bilateral relations. If the Soviet authorities truly have the sincerity to improve relations with China, then they should take practical measures to remove the threat to our country’s security.

As you know, the Soviet Union stations a large army on the Sino-Soviet border and has put an army in Mongolia as well. The Soviet Union also supports Vietnam’s invasion of Cambodia and has invaded Afghanistan. All of this is a threat to China’s security.

If the Soviet Union truly has the sincerity to improve relations with China and takes steps to remove the threat to our country’s security, and if bilateral relations are improved, then that is what we hope for, of course, and it would be in the interests of both sides.

However, there are great differences between China and the Soviet Union, so achieving that would not be easy at all. Accordingly, I think that contacts for such an improvement in relations between China and the Soviet Union would be long and continuing, like a marathon.

I will take this opportunity to say that China’s diplomatic policy is a consistent one of principled independence. When China sets forth its own policy, it does so not for its own interests alone but in consideration of the overall situation of global strategy as well. China’s foreign policy is certainly not one that lightly changes in a moment or over an incident. Also, at the recent National Party Congress, there was repeatedly expressed the principled position that China will never be subordinate to any big power. When associating with the United States, we will not play the Soviet card. Nor will we play the US card when associating with the Soviet Union. We will absolutely not tolerate other countries playing the China card. In short, Chinese diplomacy’s basic policies are:

(1) opposition to hegemony and defense of world peace

(2) the maintaining and development of normal state-to-state relations with the world’s countries on the basis of the Five Principles of Peaceful Coexistence.

Prime Minister Suzuki: You spoke forcefully on your country’s consistent diplomatic policy. Regarding Soviet policy, too, my understanding is General Secretary Hu said that he would adhere to the conventional policy. In particular, as I see it, the various actions that the Soviet Union takes, such as putting the Soviet military on the Sino-Soviet border or in Mongolia, aiding Vietnam, and invading Afghanistan, are not simply undertaken with China as the target. They are, after all, the measures and actions of a Soviet global strategy that takes into consideration a powerful force: the United States. Accordingly, it does not mean that the Soviet Union will all of a sudden improve such measures. (Premier Zhao nodded vigorously in response). I think that, in that sense, it will be difficult to improve the situation much, even with discussions taking place from this point forward between China and the Soviet Union.

Premier Zhao: (to Foreign Ministry participants around him) How long have you done border negotiations?

Vice Minister Wu Xueqian: They have gone on for 9 or 10 years. Deputy Foreign Minister Ilichev often comes to Beijing.

Minister Huang Hua: Ilichev has been in charge of the border negotiations the whole time.

Premier Zhao: Our view, too, is similar to yours. The Chinese government has to date been saying that the Soviet Union’s aid to Vietnam and invasion of Afghanistan are components of its policy of global hegemony, and nowhere are there to be seen signs that the Soviet Union will change such a policy.

Prime Minister Suzuki: The Soviet Union has been invading Afghanistan, aiding Vietnam, and building military bases, but I think that all this has become a great burden for the Soviet Union. Today, the Soviet economy has repeated failures in agricultural policy, production drops in mining and manufacturing, and the allocation of a great deal of resources to military spending. From this, I think that the people’s standard of living will have to be greatly cut, so the Soviet economic is faced with difficulties. Also the countries of the Eastern Europe Bloc countries, the Soviet Union’s satellite countries, whether seen from the aspect of the international balance of payments or the economy and trade on the whole, are in a state of crisis. Accordingly, the West’s economic measures against the Soviet Union have a very important meaning. The issue of the West’s economic policy against the Soviet Union was discussed at the Versailles Summit. Before a complete consensus was reached, disagreement arose between the United States and West European countries over the pipeline issue. At present, this is a troublesome issue in the Western camp. However, as I see it, I think that if a general agreement is reached on granting new credits to the Soviet Union, then discussions will gradually follow on the pipeline issue. As for Japan, on the issue of developing oil and natural gas in Sakhalin, Japanese enterprises are doing it in joint venture with the Soviet Union. They have been doing this for the past 6 or 7 years. The pipeline issue does not involves only Europe. Japan, as it is also involved, is asking the United States to reconsider. However, if the West can simply come to a general consensus on the granting of new credits to the Soviet Union, then I think that the problem is going to solve itself.

Premier Zhao: Recently, first former President Nixon, then Prime Minister Thatcher visited, and everyone talked about this issue. Also, I was asked how the Chinese government was viewing it. I answered Nixon then that China would not approve of any measure that would strengthen Soviet power. In addition, concerning what actions the United States would find unacceptable in its partners, Washington needs to take the lead and not do such things itself. When Reagan came on the scene, he lifted the grain embargo, then told the Western countries that they must not sell pipeline to the Soviet Union, so people in the West complained.

2. US-China Relations

Prime Minister Suzuki: Concerning the issue of arms sales to Taiwan, I think that it is a temporary compromise solution but, in any case, I take it that the United States and China are talking to one another and that the severe difference in views has subsided for the time being. I highly appreciate the United States and China for having been able to take a constructive posture of seeking to handle the issue in assessing the overall situation and talking with one another. However, in the meantime, with no basic resolution of the issue, I think that there is various thinking about it. I would like to ask you about this point.

Premier Zhao: Changes in China-US relations are new changes since the talks in May. At that time, in May, China-US relations were in a delicate stage. The Chinese and US sides in the end reached an agreement for the time being on this issue. This is an important step taken to remove a major obstacle   lying athwart the China-US bilateral relationship, and it is worthy of satisfaction. However, the recent China-US Joint Communique is only a beginning for the resolution of this issue. It does not mean that it has been resolved. The key to this issue will be the US government’s observing the obligations to which it clearly committed in the Joint Communique. In short, it is to gradually reduce the arms supplied to Taiwan and, in the end, to halt them completely. The Chinese side hopes that the United States faithfully observes this Communique and shows a solemn, sincere, and responsible attitude.

Following the announcement of the China-US Communique, there were reactions from all over the world. The absolute majority welcomed it. In addition, the reaction of the US mass media by and large was favorable. However, in the United States as well there are some pro-Taiwan forces and, no surprise, when this Communique was announced they began clamoring against it. Worth noting is that a very small number of government sources were distorting the Communique during the talks. For example, a certain person was saying that the United States would resolve the issue of arms sales to Taiwan. However, this is against not only the spirit but the letter of the China-US Communique. It is a distorted interpretation of the Joint Communique. The efforts that China makes for a peaceful resolution of the Taiwan issue is of a different quality than the issue of US arms sales to Taiwan. It is precisely because China is adhering to this point that it has been tenaciously continuing negotiations with the United States. The result is that it gave rise to a result that separated both parties. As we have announced repeatedly to this day, China’s efforts for a peaceful resolution of the Taiwan issue is entirely China’s domestic affair, and China will not accept any external interference. We cannot make a commitment to any country on such an issue.  Some US government sources have stated the view that the China-US Communique would have to be subordinate to the Taiwan Relations Act, but this is even more of a distortion. However, this proves that, so long as the Taiwan Relations Act exists, it will be impossible to completely remove the dark cloud over the China-US relationship. Its existence will be a dark influence on the development of China-US relations from now on as well. Of course, it will not be easy to resolve this at once. However, China thinks that the US president’s authority in how to handle the Taiwan Relations Act is considerable.

Generally speaking, China attaches great importance to the development of relations with the United States. The China-US relationship is not only one of having the common interest of jointly dealing with the Soviet Union’s policy of hegemony and expansion. It is not only that. For China and the United States – two great powers -- developing friendly relations in many fields is in the interests of both countries. It is also a plus for global peace and stability. Truly, we have put a great amount of effort in negotiations with the United States to reach agreements and avoid setbacks in the relationship. While safeguarding the basic principle of maintaining our country’s sovereignty, China under that principle has given full consideration to relations with the United States and, in that, expressed China’s flexible attitude. Accordingly, at present, the Chinese side hopes that the US side also attaches importance to the China-US relationship and faithfully observe that to which it clearly committed in the announced Joint Communique. Both sides have agreed to keep in contact regarding the issue of the Communique’s detailed implementation.

Prime Minister Suzuki: I have heard about policy on US-China relations, which are of the greatest importance for global peace, stability, and prosperity. Concerning your handling of the issue of arms sales to Taiwan, too, I would like to express my respect on hearing of the pains taken to tenaciously negotiate, based on the overall situation, while safeguarding your principles.

3. Taiwan Issue, Japan-Taiwan Relations

Premier Zhao: I would like to take this opportunity to touch on the issue of Taiwan. The Taiwan authorities resist the position that China has set forth on the peaceful resolution of the Taiwan issue. In order to escape from their situation of international isolation, for the past several years they have been increasing their activities in Western countries. Taiwan says that is it advancing working relations, but it has been seeking to create “Two Chinas” in various ways. In so doing, Taiwan has been trying to destroy the normal and friendly relations between us and those countries. One example is the Netherlands selling submarines to Taiwan, which brought about a downgrading of relations between China and the Netherlands. The Chinese government hopes that Western countries will heighten their vigilance against Taiwan’s activities.

Relations between Japan and Taiwan, too, are an important issue of principle in the China-Japan relationship. If the Chinese and Japanese sides strictly observe the Sino-Japanese Joint Statement and agreements concerning Taiwan and handle the issue appropriately, we can avoid disadvantage in the China-Japan relationship. Also, I think that the Japanese government, too, is taking notice of this.

Prime Minister Suzuki: Regarding relations between Japan and Taiwan as well, Japan and China have agreed and confirmed the principles of the Joint Communique and the Treaty of Peace and Friendship and have been putting them into practice to this day. Relations between Japan and Taiwan are those of personal exchanges, economic exchanges, and such. Since then, they have been aspects in which they have been quantitatively growing. There are some people with various ways of thinking, but relations between Japan and China are qualitatively based on the principles of the Joint Communique for the normalization of relations between Japan and China and the Treaty of Peace and Friendship. I confirm this again on this 10th anniversary milestone and, at the same time, in regard to personal and material exchanges, ask for the Chinese side’s understanding of it as a real issue.

4. Japan-US Relations

Prime Minister Suzuki: As I said in Tokyo in regard to relations between Japan and the United States, the Japan-US relationship is the axis of Japanese diplomacy. As I said to you yesterday as well, Japan has made efforts for its postwar reconstruction as a peaceful country and adheres firmly to the policy, based on a national consensus, of having the minimum defensive capability for its own defense but not becoming a military power. Therefore, in the event of an external invasion against which we cannot defend ourselves, we firmly hold to the Japan-US security system maintained within the Japan-US Security Treaty. In that sense, Japan and the United States, sharing political and economic values, as well as liberal and democratic ones, are in an inseparable relationship. This Japan-US Security Treaty system, then, serves as a deterrent force for Asian peace and stability as well as against some potential threats, and it has a very important significance for Asian peace and stability. In regard to such close relations between Japan and the United States, I think that they can be compatible with the unwavering relations of friendship and cooperation between Japan and China on the one hand and, also, that making them compatible contributes to the peace and prosperity of Asia and the world.

Premier Zhao: Prime Minister Suzuki, I understand what you have said just now regarding the close relations between Japan and the United States, including the security treaty. Establishing long-term and stable relations of friendship and cooperation between China and Japan will not effect the friendly relations between Japan and the United States.

I agree with your view and think it compatible.

5. Korea Issue

Prime Minister Suzuki: Recently, President Kim Il Sung of North Korea, the president of the Democratic People’s Republic of Korea [DPRK], visited China. Japan, for its part, considers the peace and stability of the Korean peninsula as having a great influence on the peace and stability of Asia. Accordingly, what we consider most desirable would be peaceful unification achieved not by a relationship of confrontation between North and South Korea but by talks. How does your country consider this issue? Also, frequently, and recently as well, you said that a southward advance from North Korea is not possible. I would like to hear your view on that point.

Premier Zhao: President Kim Il Sung’s visit to China was for promoting and strengthening the friendly relations between China and the DPRK. It was also because President Kim wished to see the changes that have taken place in recent years in China. Both sides took the opportunity of the visit to China to introduce each other’s domestic situation and to engage in an exchange of views on the international situation.

The relationship between China and the DPRK has always been a good one. Both sides are satisfied with the development of bilateral relations. President Kim Il Sung expressed a supportive attitude regarding China’s present direction, policies, and 12th National Party Congress. Our side, too, resolutely supported the concept for peaceful reunification that President Kim Il Sung put forth for the reunification of Korea. We also repeatedly expressed support for his reasonable position that the United States should withdraw its military from South Korea.

There are grounds for this, but I will tell you that what most interests the DPRK is domestic construction. They are putting effort into the development of their own country’s domestic economy and improving the people’s livelihood. They have put forth two grand construction projects for domestic economic construction. One is the development of coastal areas and developing agricultural production. The other is to develop DPRK strength in developing domestic non-ferrous metals. I also think that they wish to reduce the burden on both the North and South brought on by their military confrontation and reduce the tensions between the North and South. Also, they hope for the United States to change its attitude and not obstruct their achieving these goals. They by no means want war and have no intention of a southward advance. Their desire for peace is credible.

To my way of thinking, so long as South Korea’s Chun Doo-hwan does not provoke things, I think that the stability of the Korean Peninsula can continue. In connection with this issue, I would like to say that the United States should change its position of not having contacts with North Korea. I think that if the United States changed the position it has had to date, it would be advantageous to a stable state of affairs on the Korean Peninsula and to development. If that happened, I think that the DPRK would put forth reasonable conditions. We would like to make proposals and recommendations to the United States, but the United States seems not to listen. It would be desirable if you and the Japanese government could make some approach to the US side.

Prime Minister Suzuki: Regarding this issue, here is basically what I think. My perception is that there is a balance of military force between the South and the North, including, for the present, the US troops stationed there, and that peace on the Korean Peninsula has been maintained due to that balance. Both the North and the South are considerably straining to maintain this balance. In improving the people’s livelihood, I think it very unreasonable to throw resources into military buildup  that should go into economic development.  Such foolishness should be stopped. I think that talks should take place between the South and the North to reduce military power to a low level while keeping the balance.  Also, I think that, because the North’s letting the Soviet Union use its naval ports and other facilities provokes the United States, it should stop it. In order to turn this relationship of the South and the North, which is one of confrontation and opposition of forces, to peaceful unification and coexistence through talks, it is necessary that the United States and your country each exerts influence and create such an environment and conditions. Japan, too, would like to cooperate as much as possible on such a matter.

Premier Zhao: The DPRK is an independent country and, as we have said many times to date, it takes an independent position in regard to the Soviet Union as well. As far as China knows, the Soviet Union does not have a great deal of influence over the DPRK. You mentioned the Soviet Union using DPRK naval ports but I think, as far as we know, that is not true. This issue is not a sensitive one for the United States alone. If we saw that, we could not help but be concerned.

Prime Minister Suzuki: I would like to touch on the issue of economic cooperation. There is a request to Japan from the Republic of Korea [ROK] for economic aid. In regard to this, it is absolutely unacceptable that economic cooperation from Japan be used for such purposes as military buildup. Japan prohibits arms exports. We have the Three Principles on Arms Exports. Our position as a peaceful country is that we do not export arms or provide weapons technologies. Concerning economic cooperation, we hold firmly to the basic policy that we do not engage in economic cooperation that would be directed toward the strengthening of military power. Japan’s policy, not only for the ROK but for every country, is that economic cooperation must be useful for developing the economy and improving the people’s livelihood, thereby contributing to global peace and stability.

In regard to the ROK as well, we have made it clear that economic cooperation cannot strengthen security. We have received various concrete requests from the ROK and are now examining them.

Premier Zhao: Does your country have economic dealings with the North?

Prime Minister Suzuki: There is private-sector trade and commerce. Due to sluggish economic conditions in the past year or two, however, past debt has not been assimilated and interest has not been repaid as promised. It is a fact that the pipeline for new trade and commerce has been narrowing.

Premier Zhao: China hopes that Japan develops economic dealings and cooperation with the DPRK.

Prime Minister Suzuki: North Korea is in considerable economic difficulty, affected by the global economic recession, and its finances also seem to be suffering, but was there concrete movement forward on economic cooperation or the providing of aid for economic cooperation, technical cooperation or such when President Kim Il Sung visited China?

Premier Zhao: We did not touch on specific issues. However, the intermediate long-term trade agreement ends this year, so we signed a new long-term trade agreement. This one nearly maintains the level existing until now and, as until now, we will provide oil and coke. When I visited the DPRK in December last year and this time, too, the DPRK side said that the domestic economic situation was good and that the would make no new or particular request of the Chinese side. Even the signed intermediate trade agreement was not signed during President Kim Il Sung’s visit to China but a little before then. On the whole, exchanges, including trade and cooperation, are maintained at their level to date. We have neither decreased or increased them.

6.  Middle East Issue

Prime Minister Suzuki: That the state of affairs in the world is showing such turbulence is due in large part to the fluidity of the situation in the Middle East. For Japan, in the Middle East there are relations with the Gulf countries and our relations with the largest oil-supplying area. We, too, are concerned about the situation in the Middle East and sincerely hope for its peaceful resolution. Also, in regard to to peace in the Middle East, we are making every effort in making contact with representatives of your country as a member of the United Nations Security Council. Such things as the large-scale massacre of innocent people in Lebanon, in Beirut, are absolutely unforgivable acts from a humanitarian viewpoint. Our country, too, condemns them and call for the immediate withdrawal of Israeli forces from west Beirut. Our country thinks it absolutely necessary, in exchange for recognizing Israel’s right to exist, to recognize the right of the Palestinian people to self-determination and to the establishment of an independent state. We are taking every opportunity to make an appeal for this to the United States as well.

Premier Zhao: I praise your stated position and attitude on the Middle East issue. Israel, in their barbaric invasion of Lebanon, in cruelly massacring Lebanese and Palestinian civilians, attempted to wipe out the efforts of the Palestinian Liberation Organization [PLO] and to destroy completely the Palestinians’ righteous cause. Palestinian forces of national liberation thereby suffered a setback, but Israel’s scheme absolutely cannot be realized.

We think that the core of the Middle East issue is the Palestinian issue. So long as Israel does not withdraw from the territories of Arab countries occupied in 1967 and so long as the Palestinian people are not granted the right of national self-determination, it will be forever impossible to resolve the Middle East issue. The key to resolving this issue lies in changing the policy that the United States has adopted toward Israel. It is the United States abandoning its policy of supporting and accepting Israel that would make possible Israel changing its policies of invasion and expansion. So long as Washington does not change its policy of supporting and accepting Israel’s invasion, it will not be possible to resolve the conflict between the United States and the Arab countries, nor will it be possible to eliminate the opportunities for the Soviet Union to take advantage of the situation and attempt to pursue there a policy of expansion. Most of the Arab countries now have expressed the position of wishing to resolve the issue on a reasonable basis. I think that this is a golden opportunity. The key to this issue lies in the United States putting pressure on Israel.

The proposal for a resolution of the Middle East issue, set forth recently at the conference of Arab countries in Fez, Morocco, is an entirely reasonable proposal. It not only expresses the unity of the Arab countries, but it is something realistic, practicable, and which should receive the serious consideration of international society. I would like you and others in the Japanese government to exercise your influence and urge the West, particularly the United States, to support the position and proposal put forth at the Fez Conference.

7. Conclusion

Prime Minister Suzuki: The past two days of talks have been fruitful. I am happy that we reached consensus on many issues.

Premier Zhao: I completely agree with your assessment.

III. Meeting between Suzuki, Deng Xiaoping

September 28, 10:05 – 11:35

1. Overview of Japan-China Relations

Senior Leader Deng: Prime Minister Suzuki, it is very significant that you have visited China in this monumental year, the 10^th anniversary of the normalization of relations. That is to say, the normalization of relations is something for the people of our two countries to commemorate. It is regrettable that I was not one of those involved at the time in the normalization of relations. At that time, two men -- Prime Minister Tanaka and Foreign Minister Ohira -- played leading roles. Prime Minister Suzuki and Foreign Minister Sakurauchi also at that time made great contributions within the party. I was involved at the time of the signing of the China-Japan Treaty of Peace and Friendship.

I would like to thank then Prime Minister Tanaka and Foreign Minister Ohira on normalization of relations between China and Japan. Both you, as chairman of the Liberal Democratic Party [LDP] General Council, and Foreign Minister Sakurauchi, as chairman of the LDP Policy Research Council, contributed. Thank you. Furthermore, I also thank those who made efforts for friendship between China and Japan, including Mr. Fujiyama, Mr. Okazaki, and Mr. Furui. There are many more persons than we can count who made efforts in this area. After you return home, please give our regards and appreciation to Mr. Tanaka and the widow of Mr. Ohira. Also, please convey our cordial good wishes and sincere greetings to Mr. Fujiyama, Mr. Okazaki, and Mr. Furui. We thank these gentlemen. (Wang Xiaoxian, director, Japanese Affairs Division, writes a memo.) Please convey my gratitude as well to Mr. Nikaido, who played a very active role at that time as chief cabinet secretary.

Prime Minister Suzuki: I will certainly convey your kind words to each of my seniors. Everyone, without a doubt, will be happy to hear it.

Senior Leader Deng: Also, please convey our greeting to Mr. Fukuda and Mr. Sonoda, who were involved in the concluding of the 1978 China-Japan Treaty of Peace and Friendship.

Prime Minister Suzuki: I understand. I will make sure to tell them.

I am deeply grateful, Senior Leader Deng, for your great efforts made at that time for the conclusion of the Treaty of Peace and Friendship between Japan and China. Also, I still clearly remember how the Japanese people expressed their enthusiastic welcome when you came to Japan for the signing. On my visit to China this time, the day before yesterday and yesterday I engaged in a frank exchange of views with Premier Zhao on the Japan-China relationship and the international situation. I am very happy that we were able to have such substantial and fruitful exchanges of views that we went over the planned time.

I met Premier Zhao at Cancun and in Tokyo in May, so this was my third time, but I feel as though I have known him for a long time. In China there is the term “old friend.” Truly, I have come to have this feeling of closeness to Premier Zhao.

Premier Zhao is an expert on economic issues, but he also has great insight as well on international and other issues. He also has a warm personality. From Japan’s position, too, I am happy that China has chosen such an exemplary premier. From now on, I hope, in speaking closely and directly with Premier Zhao, to be able to smoothly solve difficult issues, no matter what kind they are.

Senior Leader Deng: We have done some important things in the past few years (note: reference to the issues of new cadres succeeding old ones and choosing young officials). Our generation is in fair health but, after all, we have reached the age of departing this world. Accordingly, there is a great need to have persons who are young and healthy compared to us work on the front line. I am having Hu Yaobang and Zhao Ziyang do more and more of the work. You will meet General Secretary Hu Yaobang a little later. I believe that you two will soon become friends.

[TN: line through page, possibly indicating remarks of Prime Minister Suzuki cut]

Senior Leader Deng: As you are all aware, this is the first time we brought up relations between China and Japan (at the 12^th National Party Congress). What I would like to say regarding the China-Japan relationship, which I have also said many times before, is that “relations between China and Japan and between the Chinese and Japanese people will continue to be friendly for generations to come.” This latest National Party Congress confirmed that this friendship between China and Japan and between the Chinese and Japanese people is now our long-term national policy. There are five years between this National Party Congress and the next one, but this national policy is not one for only five years. For generations to come is not a period of 5, 10, 20 or 50 years.

Prime Minister Suzuki: It is as you say, Senior Leader Deng. On this visit to China, I have said to the Japanese people and press that, on the basis of the strong friendship built up between Japan and China these past 10 years, we must develop cooperation between our two countries in the 1980s and in heading toward the 21^st century. That is, I said that I am visiting China with the feeling of building unwavering friendship through plentiful exchanges and would like to talk with Chinese leaders and confirm with them those relations of friendship and cooperation between Japan and China. Accordingly, I completely agree with what you have just now said.

Senior Leader Deng: The way of bringing forward a proposition on the China-Japan relationship, as we just did, is bringing it forward on the basis of the practice of the past 10 years. China is a member of the Third World and is emphasizing concert and cooperation with the Third World. However, in relations with other regions, we are putting cooperative relations between China and Japan first. This is not only in line with the desires of both people; it is also in accord with their interests. Moreover, in the relatively major relations for us in the past 10 years, that is, relations between China and Japan, China and the United States, and China and the Soviet Union, have been, those between China and Japan have been, as expected, good ones. Of course, our views are not the same on each and every issue. This is normal. Issues like the textbook issue are probably going to happen in the future as well. This issue was solved by the efforts made on both sides. When issues occur in the future, let us continue to solve them in a spirit of mutual understanding.

Prime Minister Suzuki: It is as you said, Senior Leader Deng. The honeymoon period in the Japan-China relationship has ended, and we have have entered a mature era based on mutual trust. In the future, exchange and partnership will proceed in both politically and economically, across a broad range of fields. Among them, surely, there will occur ripples – small differences in opinion and conflicts of interest – and this would be natural. However, as you said, if our two countries resolve them by talking to one another on the basis of mutual trust, there will be nothing that we cannot resolve. I believe that forming a relationship of coexistence and co-prosperity is in the interests of the people of both countries and can contribute to the peace and prosperity of Asia and the world.

2. China’s Domestic Politics

Senior Leader Deng: There have been discussions these past few years on whether or not China’s political situation is stable or not and, although the policies that we have now adopted are good, whether or not they could be continued in the future. The 12th National Party Congress has further pushed forward a resolution of such issues, resolving that of the aging of national leaders and having the younger generations work on the front line.  However, we will have to continue to devise solutions  for this issue. Over 60 percent of the new Central Committee is under the age of 60. However, in the future we should further increase their proportion and elect persons in their 40s and 50s to the Central Committee.

Prime Minister Suzuki: I sincerely congratulate you on the success of the recent 12th National Party Congress. (Senior Leader Deng: Thank you.) Japan also sincerely congratulates China for establishing a system of the government and the people together working towards its goals, in particular strengthening the organization and system, decisively carrying out the rejuvenation of personnel, and unanimously agreeing on the Four Modernizations.

Senior Leader Deng: At the 12th National Party Congress, and I think that everyone is aware of this, we confirmed the policies agreed upon and implemented since the Third Plenary Session in 1978. Concerning foreign policy as well, the current National Party Congress repeatedly stated the policy that we established and implemented these past few years. Of course, there are small changes in the way of instituting them.

3. Japan-China Economic Relations, China’s Economic Plans

Senior Leader Deng: The development of China-Japan relations is relatively good. However, it is not that they are entirely without issues. Nor is it that we are completely satisfied with the state of development in China-Japan relations. For example, in the area of economic cooperation, I hope that we do more. The field for that is wide. Those in which China and Japan should draw on each other’s strengths and make up for their shortcomings seem almost too many. China has resources; Japan has technology. If our two countries cooperated, it would be tremendous. It is not enough for us to think of economic cooperation between China and Japan from a political angle, nor is it enough that this cooperation be only intergovernmental cooperation. Private-sector cooperation is also necessary.

Prime Minister Suzuki: I agree. China has announced a grand plan for quadrupling agricultural production by the year 2000 and said that it will be achieved within the policy of the Four Modernizations. I believe that there will be many difficult problems in achieving that. Japan would like to the extent possible to cooperate completely. Also, China’s understanding and cooperation are necessary but, speaking in terms of the goal of China’s great construction, there are limits to intergovernmental yen credits, economic cooperation, and technical cooperation alone. Cooperation is surely necessary on a private-sector basis in such areas as economic cooperation, technical cooperation, business management, business administration, investment, joint ventures, and factory modernization. I have already spoken of this with Mr. Doko and Mr. Inayama, but I would like to ask by all means for the strengthening going forward of private-sector economic cooperation and exchange between Japan and China. Also, I would like to ask of Premier Zhao as well the improvement as quickly as possible of the environmental conditions, such as a tax treaty and an investment protection agreement, that facilitate investment and technical cooperation.

Senior Leader Deng: The thought of quadrupling agricultural production is something that took shape when I was talking before with Prime Minister Ohira. (After confirming the date with those around him) That was when I spoke with Mr. Ohira in December 1979. He asked me what was the meaning of the Four Modernizations. At the time, although we we speaking of making efforts for the Four Modernizations, it was not specific in terms of what were the specific goals. Reflecting on it, I thought that Mr. Ohira’s question raised a very important issue. I then expressed the thought of a national average income of 1,000 US dollars by the end of the century. The present level is 250 US dollars. However, even 1,000 US dollars is low in comparison to the global average. Even at that time, it was at the level of a comparatively good living standard in China. Later, according to economic statistics and calculations, this goal became possible. That we have now lowered the goal slightly to 800 US dollars is simply because the population at the end of the 20th century will be 1.2 billion, not today’s one billion people. At this National Party Congress, we confirmed this strategic policy after having fully considered this issue. Accordingly, I am thankful to Mr. Ohira for making us think about this issue.

4. Revival of Militarism Issue

Senior Leader Deng: Concerning the China-Japan relationship, in regard to political issues, I hope Prime Minister Suzuki, that you, the Japanese government, and future governments pay attention to the inclination toward militarism. We do not suspect the Japanese government of having such an inclination. That is to say, it is because Japan’s constitution has clear provisions. However, and this is not the overwhelming majority, there are persons who are thinking of a revival of militarism. That Yukio Mishima incident of a few years ago was definitely not about him alone. It reflects an inclination and expresses action of a certain politics.

What we regret is old politicians trying to put up a monument to Manchukuo and the like. What in the world is that?

Prime Minister Suzuki: There has just now been an expression of concern over whether or not the inclination toward militarism is growing in Japan. This is a good opportunity, so I would like at this time to speak frankly about it. The Japanese people, reflecting deeply on Japan’s prewar course, and with no excuse for the tremendous damage it caused to neighboring counties, keenly feel their responsibility and reflect on it. The Japanese people, too, were made to suffer greatly.

Our country established our Constitution in thinking that we must not repeat the mistakes of the past.　We have a defensive capability, the minimum necessary for defense, but we do not have a military capability that would threaten neighboring countries. Also, we have expressed our firm determination that, even in becoming an economic power, we will not become a military power. Accordingly, the overwhelming majority of the Japanese people, based on the spirit of the Constitution, is advancing in the direction of contributing to world peace through economic and technical cooperation with the world. As a person responsible for Japan, I clearly say that a revival of militarism is by no means possible and absolutely will not happen.

(Further, at the end of the meeting, Prime Minister Suzuki again said in regard to the Chinese side’s concern over a revival of Japanese militarism that he wished them to understand that such a revival was by no means possible and that Japan, on the basis of the Japanese people’s consensus, was determined to walk the path of a peaceful country.)

5. Sino-Soviet Relations

Senior Leader Deng: Everyone here is interested in the Sino-Soviet relationship, so I will talk about it. Let me be clear, though: there is no dramatic change in Sino-Soviet relations (Huang Hua and Wu Xueqian, present, laugh). Our position, to which we have always adhered, is that we consider Sino-Soviet relations from the perspective of global strategy. The heart of the matter in relations between China and the Soviet Union, that is the obstacle to the bilateral relationship that should be removed, is Soviet hegemony. To put it another way, the Sino-Soviet relationship is not only the issue of the Sino-Soviet border. Setting aside the entire world and taking up only nearby areas, there are acts of naked Soviet hegemony in Cambodia and Afghanistan. Between China and the Soviet Union, too, the situation is not one of a conflict over a few square kilometers on the border. The situation is one of the Soviet Union stationing 1.8 million troops along the border and one of their deploying one third of their ICBMs in the Soviet Far East. ICBMs are pointed at Japan and the United States as well, but they are also a direct threat to China. When we were babies, when we were in elementary school, the teachers and textbooks told us that the map of China was in the shape of a mulberry leaf. It is different now. With Outer Mongolia’s place cut out, the content of China’s textbooks has also changed.

Concerning Outer Mongolia, it has to do with the treaty that Chiang Kai-shek concluded. Of course, we are not thinking to seek this treaty’s revision. However, it is not right for the Soviet Union to station troops in Outer Mongolia.

China and the Soviet Union are, of course, having talks about having talks. It would not do to completely not be in contact in state-to-state relations. However, the Soviet Union must do something in order to normalize Sino-Soviet relations. For example, by withdrawing one million troops from the Sino-Soviet border and Outer Mongolia or by taking some measure in Afghanistan or Cambodia, the Soviet Union should show at least a little relaxation in their policy of hegemony.

However, the question is whether or not the Soviet Union will implement such measures.

Prime Minister Suzuki: I thank you, Senior Leader Deng, for directly talking to me about Sino-Soviet relations.

6. Hong Kong Issue

Prime Minister Suzuki: I would like to take this opportunity to ask you about something. Britain’s Prime Minister Thatcher visited Japan before her visit to China and told me that she wished to talk with China’s leaders about the Hong Kong issue. What happened is that I advised her, when meeting you, to speak directly concerning this issue. When you met Prime Minister Thatcher, you two talked about the Hong Kong issue, but what thoughts did you express?

Senior Leader Deng: I clearly told Thatcher that we would definitely resume sovereignty over Hong Kong and that this could not be a subject of discussion. However, the issue of what to do about Hong Kong’s society, politics, and system, that we could discuss. Also, there would be no change in present conditions in the transition period of 15 years between now and 1997. In addition, I clearly told Thatcher that we did not intend to change Hong Kong’s social system after the resumption of sovereignty and that we would maintain Hong Kong as a free port and as a center for international finance. Furthermore, concerning the laws, we could apply the existing ones. We would like to hear Britain’s thinking on what to do about policy in the next 15 years. The Chinese and British sides agreed to start consultations on this issue at once at the working level. I clearly told Thatcher that a period of one year for these consultations would be the most desirable and that it would not do to have them any longer than for two years at most. I then said that no more than two years later we would announce the resumption of sovereignty over Hong Kong in 1997.

Thatcher responded to this in requesting that we not make public at present our resuming sovereignty over Hong Kong, so we agreed to this.

Prime Minister Suzuki: I see. We, too, are closely connected to the Hong Kong issue, so it is a matter of great interest to us. Hearing what you said is useful information. Also, I would like to keep what I have heard secret.  

Senior Leader Deng: I would like to convey this to Japanese businessmen. Even after the resumption of sovereignty in 1997, we have no intention of harming the corporate or financial interests of Japan, the United States, Britain or others.

Prime Minister Suzuki: Thank you.

IV. Meeting between Suzuki and Hu Yaobang

September 28

1. Overview of Japan-China Relations

General Secretary Hu: I bid you a warm welcome. It is a pleasure to meet you, Prime Minister. Ten years ago, you and Foreign Minister Sakurauchi, along with Mr. Tanaka, Mr. Ohira, and Mr. Nikaido, made great contributions to normalization, so I particularly welcome you.

Prime Minister Suzuki: I have visited twice since May 1979. The previous time, I met Vice Premier Deng Xiaoping and made an inspection tour of such places as Dalian, Shanghai, and Guilin.

General Secretary Hu: Senior Leader Deng and Premier Zhao have already spoken, so there is nothing particular that I would like to say. There is just one thing that I would like to say, which is to repeat again the following thinking that government leaders and the people have. China and Japan are two great peoples of the Far East and the world. Peaceful cooperation is in the interest of both sides, and  it would be to the detriment of both sides not to engage in it. It also brings well-being to the world and to generations to come in our two countries. Accordingly, the last 10 years of friendly government and private-sector ties are of global significance and surpass both the scope of China and Japan and the present. It is not that there are not a few problems or troubles in getting along well together for generations to come. Thinking back, at the time of the normalization of relations 10 years ago, some comrades in China were opposed to it and would be offended merely at the sight of Japan’s flag. In the 10 years since then, we have in all that time instructed the Party and cadres that revanchism is wrong and given the masses guidance that China will not seek hegemony even after becoming powerful. From the position of wishing for friendship with Japan, I hope that you give instruction so that the broad masses of the Japanese people are not influenced by the narrow views of some people and do not engage in militarism. I would like to propose this not only for Japan and China but for the world.

Prime Minister Suzuki: Ten years ago, we realized normalization by following the guidance from a high position of the late Zhou Enlai to “seek common ground while putting aside differences.” Looking back on the friendship and relations of trust and cooperation since then, we have achieved great development. I think that, in 2,000 years of history, we may never have had so wonderful, unwavering, and mature a relationship as we have now. I think that developing Japan-China friendship for the 21^st century on this basis is our mission and that it is a great undertaking that will lead to peace in Asia and, further, the world. With such a feeling, I congratulate you on the success of the 12^th National Party Congress. I highly appreciate Your Excellency’s having obtained the top post of general secretary and having strongly started a new leadership system. In the political report of the National Party Congress was language that the development of the relationship between Japan and China is not only in the mutual interest of our two peoples but that it contributes to the peace of Asia and, further, the world. Knowing that this has been emphasized, I feel strongly about it. In that report is expressed the concern that “in some parts of Japan, there are attempts to revive militarism.” However, I would like to say to you that the overwhelming majority of the Japanese people are doing everything that they can to build a peaceful country that will not repeat the mistakes of the past and will not become a military power. This is the consensus of the people. There will be no revival of militarism.

General Secretary Hu: I firmly believe in the mainstream of the Japanese people. I have read former Prime Minister Shigeru Yoshida’s Gekido no Hyakunenshi [TN:  “A Turbulent History of 100 Years,” published in 1978]. I understood in reading it that the Japanese people have many excellent qualities, that they are a people possessing science and technology, that although political leaders in that history did make mistakes, the Japanese people did not agree with them. Both China and Japan have strong points and shortcomings. Japan has excellent technology, China has natural resources, and Japan-China cooperation has broad prospects.　

Prime Minister Suzuki: Even if there are various difficulties hereafter in the Japan-China relationship, we should overcome them and develop friendly relations. Contacts between our governments are going well and exchanges between our peoples are flourishing. At this time I would like to have Your Excellency come to Japan, see Japan with your own eyes, and understand the thinking of the Japanese people. Representing the Government of Japan, I would like to formally invite Your Excellency to visit Japan.

General Secretary Hu: Thank you for your kind invitation. I really would like to see and learn how things are in Japan.

2. Conversation at Lunch Meeting

(1) Ambassador Katori’s Press Briefing

Prime Minister Suzuki: Yesterday, in meeting some Chinese exchange students who had returned from Japan, I learned of their activities in various fields of China’s society and thought that their prospects were very promising. Along with that, we decided this time to build the Japan-China Friendship Center. I would like to make it a splendid token of friendship between Japan and China.

General Secretary Hu: That would be great. By the way, how is the Japanese dairy industry doing?

Prime Minister Suzuki: Japan is now self-sufficient in milk, butter, and powdered milk. By the way, China has a long coastline. Could you not develop more fisheries? In Japan, fish farming is thriving.

General Secretary Hu: In China, too, we are raising kuruma prawn and sea cucumbers.

Prime Minister Suzuki: Non-ferrous metals are in short supply now, and prices are rising. Chinese has both non-ferrous metal resources and the hydropower resources necessary for their development. Therefore, although their development requires a large amount of funds, both our countries would like to cooperate for the development of non-ferrous metals.

General Secretary Hu: I agree with your thinking. However, this cooperation is probably 20 or 30 years from now and will be for our offspring. I am for joint development of the resources in China if the principle of equality and mutual benefit is observed. Introducing from Japan some of the equipment and, with discussion on both sides, using the output for the offspring of our two countries would be possible.

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