III. Statement by President Boris Nikolayevich Yeltsin of the Russian Federation

4. Meetings between President Boris Yeltsin and other leaders

President Yeltsin: Yesterday, we met Prime Minister Miyazawa, and this was a fruitful meeting. We touched on matters of territorial differences. This will be dealt with on the occasion of our official visit to Japan and possibly in the month of October. I had an occasion to meet the Prime Minister of Great Britain, Mr. Major. This evening I will meet Mrs. Campbell, Prime Minister of Canada and tomorrow morning I will have occasion to discuss bilateral relations with President Clinton and attitudes and our action with regard to international issues. We would like to express our gratitude to Prime Minister Miyazawa and Japan for the hospitality afforded us here at this meeting of the Group of Seven. We are doing our best to ensure that assistance given to the process of reform in Russia shall not cease but shall continue, also on the part of Japan. We are happy to see the results being achieved in Tokyo and the atmosphere of cooperation. This is part of the new world order. Political decisions are being taken and these have to be implemented. We have a major amount of work to carry out, and this is what we are bound to do. Thank you for your attention.

Presss Secretary Masamichi Hanabusa: Thank you very much. Now, questions.

Mr. Murata (Kyodo News Services): I have a question for Prime Minister Miyazawa. In your initial statement, you referred to the decision to invite President Yeltsin to the G-7 Summit in Naples. For the Tokyo Summit, President Soeharto of Indonesia wanted to have a G-7 Plus One, but the G-7 did not accept his request. When it comes to President Yeltsin or -- regarding past presidents -- I think that four times in a row the Russian presidents have been invited to G-7 Summit meetings. How long are you going to continue inviting the President of Russia? Is it going to be institutionalized? Is the G-7 Plus One going to be institutionalized? The next question is to President Yeltsin. Do you think that the G-7 has accepted Russia to be a member of the G-8? Do you think that the G-7 should turn into the G-8? This is my question. Thank you very much.

Prime Minister Miyazawa: For Russia to become a democratic State and proceed toward a market economy and coordinate or cooperate with us in terms of macroeconomic policy, will certainly be of greatest interest to not just Japan but other countries as well. That is why we visited President Yeltsin this time, and we will also agree to invite President Yeltsin next year to Naples as well. The format will be the same as this year.

President Yeltsin: I would like to answer this question. In connection with the Group of Eight, I am in no hurry. Time is on our side. We are bound to be part of the Group of Eight and I am convinced of this, be it one year earlier or one year later, sooner or later we are bound to be there.

Mr. Boris Grischenko (Interfax): Boris Nikolayevich, Mr.President, you are saying that you are not in a hurry to join the Eight. But could I ask the question a different way? Do you consider the Tokyo Summit has brought something into the relations of Russia with the Group of Seven? This is something that you have been mentioning from time to time.

President Yeltsin: Yes, indeed this is something that I have said actually. I have said here in my introductory statement, indeed, that the Tokyo meeting is certainly different from the previous meetings in that we have been discussing specific concrete programs. These were specific deeds. They were political and economic issues. Diplomatic questions were being debated in specific terms. In this way it is different from previous meetings and it is useful.

Mr. Federico La Mont (Radio Formula Mexico): Even though President Boris Nikolayevich Yeltsin stated that during his upcoming visit to Japan he will settle negotiations with Prime Minister Miyazawa about the Kurile Islands, I would like to ask you, President Boris Yeltsin, if the leaders of Russia and Japan have advanced in some way or another in the territorial row that has prevented the two countries from ending their Cold War rhetoric. That is my question for you, President Boris Nikolayevich Yeltsin.

President Yeltsin: Well, we have to say that the meeting at present of the G-7 Plus One, we did not really have enough time to discuss anything further. As it was, we had to deal with wide issues and we could not have undertaken a bilateral conversation. I had only thirty minutes with Prime Minister Miyazawa. But we have agreed on meeting again sometime in the middle of October. There will be a visit by the President of Russia to Japan, and there we shall be readier for it and we shall tackle these things.

Ms. Vera Kinyasova (Nezavishimaya Newspaper): Boris Nikolayevich, could you tell us, what ought to be the period required for transition in which the West could remove all limitations to external trade? We know that the Ministers of Finance and Foreign relations were talking in terms of ten years or something of that nature. Perhaps would it be two or three years? President Yeltsin.

President Yeltsin: I think that every country is bound to find its own terms in terms of time. The United States, for instance, has 300 acts of law which appear to be discriminatory against Russia, but President Clinton has already introduced a bill to Congress to amend these. This legislation and this work started immediately after the Vancouver meeting. Others leaders of other countries haven't yet got down to doing this or they may have to tackle a smaller volume or smaller range of such discriminatory clauses in their legislation. Therefore, I consider that we are bound to achieve this with the United States in a matter of two years. Other countries may take a shorter or a longer time. We shall have to wait and see.

Mr. Jay (BBC): What advice, Mr. President, were you able to give the Group of Seven about their problems of low growth, high unemployment, and budget deficits?

President Yeltsin: I do understand that the difficulties of the West are enormous and unemployment is one major issue. But I was trying to assure them and I did assure them that the export of labor from Russia to Western countries is not likely to be on any scale. I think that they need not trouble themselves over it in the next two or three years. After all, our unemployment goes at the rate of about 1.5%.

Ms. Boulton (Financial Times): Boris Nikolayevich, could you tell us, you intended to raise the question of access of Russian goods to foreign markets, and there was a package of assistance for privatization. I wanted to know, what would be your rating of success or lack of success in these terms at this meeting of the Group of Seven?

President Yeltsin: Yes, indeed I had occasion to talk seriously about matters of discriminatory measures against trade. I haven't asked for any special favors. I merely wish to be sure that Russia is treated just like other countries. I am in favor of free trade. After all, we are reaching this internally and we are reaching out in our external trade. Therefore, the greatest frustration that I find in this matter at this level at this meeting is that my energetic appeals and urging got the kind of response that yes, yes, the Group of Seven understands these matters and that they ought to be resolved, but there was nothing specific or concrete by way of answer. But I think perhaps the fund for privatization where the S3 billion is involved. This is the privatization facility that is being arranged. Perhaps I could say further that there is another positive factor that we can be happy with. The atmosphere was good. There wouldn't be a situation where we were being taught by mentors and we as representatives of Russia are being examined on all subjects. No, no. There was an atmosphere of equality, of mutual respect, and I think that we are really getting somewhere, and I think that Prime Minister Miyazawa really has played a positive role.

Mr. Yamagiwa (Sankei Shimbun): Mr. President, you are going through the path of democratization and liberalizing your economy. I pay my due respect to your efforts, but I speak of the Japanese national sentiment. There is an illegal occupation of the Northern Territories from the days of Stalin. Those islands have to be returned. Also I have to be reminded of the problem of the detainees, the prisoners of war, the Japanese officers and soldiers being detained after the war. This is something that is really hanging as a question in the minds of Japanese people. You said that those questions would be dealt with when you visit Japan officially, but this is a precious opportunity that you are in Japan. We waited for two times for your visit to Japan, but you cancelled those visits. This is a special, particular precious opportunity that you are here in Japan, so I would like to invite your comments regarding the Northern Territories as well as the detainees problem of Japanese soldiers and officers.

President Yeltsin: On the question of prisoners of war, I think something has been done already. We have a law that has been promulgated. There is the question of visiting the cemeteries and tombs of those. To the islands, this is a regime without visas, and an exchange of visits throughout the territory of Russia is being arranged. This is going to be signed and approved in a matter of days. We are gong to do our best to do work on the various cemeteries and bring them up to some sort of order. With regard to the islands, this is not a question that has been touched on so far. First of all, we will have to discuss it from all points of view. We cannot merely promise something, and then of course I might require a visa to get back to Russia. After all, you know, I must think in these terms. Perhaps they might let me out, but who knows if they will let me in if I just say reckless things on the islands. So let us prepare for the next visit. This is where we are going to discuss these matters. I was talking earlier to Prime Minister Miyazawa and I was trying to say to him my people are experiencing a difficult time, and the question of territorial matters, these are highly charged politically. This is something that leads to explosions. We have a patient people, and they are experiencing difficult times without resorting to strikes, but territorial losses can be very explosive and I think that the more that Japan assists us in economic reforms, the faster we implement economic reforms and get a higher standard of living, as a result the Russians will be much more serene in matters of decisions concerning territorial matters. They are bound to be highlighted, discussed and debated during the next visit.

Mr. Vykhoukholev (TV Ostanikino): President Yeltsin, you have a package of assistance from the Group of Seven. What are you going to do in Russia to use these funds to make sure that they don't just go elsewhere?

President Yeltsin: This package consists of consistent subpackages and these may be small apparently but each is earmarked for its purpose. I was talking about the resuscitation of the gas and oil industry. About $840 million, that is what it is intended for. On the stabilization of ruble currency, about $1.5 billion and further $1.5 billion in the autumn for the purpose of stabilization of the ruble. These are to be directed for these purposes to ensure that the exchange rate of the ruble to the dollar remains stable. Have you noted that it has in fact been fairly stable in the last month? There is no need to get it to drop, but at least we can try to lower it gradually over time. This is our agreement with the government and also with the Central Bank agreeing. Every million has its purpose and it is to be directed towards specific matters. This is not going to be an overall heap to be distributed liberally. We must note there is a question of promoting, in a non-credit, non- financial fashion, there are credit promotions, there are functions concerning reserves, and there are many ways of promoting these processes, and they must be performed in a concerted fashion.

Foreign Ministry Spokesman Masamichi Hanabusa: With the approval of the President and the Prime Minister, we will accept two more questions.

Mr. Rogala (Polish Television): I would like to know what kind of assistance from the West could help your country at the present stage? This is one thing. How long will it take, what will be the effect and when are you coming to Poland at last?

President Yeltsin: I think the Chairman on the Russian side is saying that this is not a question that is not a question that is entirely germane to our discussion. The visit to Poland is being considered and will be a visit still effected this year. But the question of the whole package of assistance being useful, I have just answered a question on this.

Mr. Golovnine (ITAR-Tass): If you don't mind, I would like to ask one short question to the President of Russia and the Japanese hosts. President Yeltsin, I'm afraid that the Russian side and the Japanese side have expectations from the other side; I would like to know what is your opinion with regard to this psychological misfit? Are you satisfied with the result?

President Yeltsin: I would like to say that the psychological attitudes of the people on both sides, be it on the part of the Japanese and that of the Russian people, I think this is perfectly understandable. If we don't instigate people to explosive attitudes on matters of territory, I think gradually feelings will calm down. I think that the mass media should promote greater calmness and inspire greater respect on the part of the Japanese towards Russians and the other way around too. Now, there is the question of for instance a film on the Kurile islands in St. Petersburg. Why was this film not shown over television? I'll explain why. It was because there were fears that this might have led to repercussions. I think that it should have been shown. When I get back home, I will do my best to ensure that this sort of publicity is given. I think that this is a temporary difficulty in our history. We have seen a lot that has been positive and good relations with Japan and there are lots of positive factors and aspects between the two countries. This is what we must promote and increase and enlarge and amplify.

Prime Minister Miyazawa: President Yeltsin arrived yesterday and at noon he read out a message to the Japanese people. I think that it was a very candid and good message. He visited with me and said that this was a visit for the Summit meeting, and therefore wishes to pay an official visit sometime in October and wished to discuss pending matters. That is quite logical, so I said that certainly is fine. As for the Summit meeting itself, earlier, President Yeltsin mentioned that it was not like a student in the midst teachers. That is absolutely correct. The atmosphere was to discuss problems of each other. I think his visit this time was very good. Of course, Japanese people may have rather mixed feelings, but I am sure that his visit this time will have a very favorable effect on the feelings of the Japanese people. Thank you.

Foreign Ministry Spokesman Masamichi Hanabusa: Thank you very much. With this we conclude this press conference.

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All contents copyright ©, 1996. This is an unofficial transcript prepared in Tokyo by Urban Connections, Inc.. Urban Connections is the source and sole owner of rights to these texts, which appear here with its permission.