Bush Warns ‘New Friend’ Kaifu on Trade Imbalance

President Bush greeted Japanese Prime Minister Toshiki Kaifu as a “new friend” today but immediately cautioned that the health of the partnership of their countries will require Japan to increase its imports.

“I share the prime minister’s belief that while Japan is noted as an exporting superpower, the time has also come for Japan to be an importing superpower,” Bush said.

The President, interrupting his Maine vacation for the get-acquainted session at the White House with the new Japanese leader, said economic imbalances between the two allies were discussed “at length.”

Imbalance Recognized

Kaifu, speaking after Bush in a brief departure ceremony after their meeting, said Japan recognized the trade imbalance and said his country would continue to “make efforts for expanding imports.”

At the same time, Kaifu noted that the United States must do more to reduce its budget deficit, increase the rate of savings by Americans and increase the competitiveness of U.S. industry.

The United States is running a $50-billion annual trade deficit with Japan, and Bush said, “We know that the health of our relationship partly depends on bringing our economic relationship into better balance.”

The two leaders said their discussions also included talks about China, Cambodia and international terrorism.

“While we met as new friends, our talks were conducted as old friends,” Bush said. He cited “broad agreement on the major items of our bilateral and international agenda.”

Kaifu picked up on the theme, saying that “I just completed my first meeting with the President. Nevertheless, I was able to conduct talks with the President as if I were meeting an old friend.”

Kaifu also said he proposed to Bush an international effort, to be partly funded by Japan, to bring food and other relief to people in developing nations. He said the effort would be named after the late Rep. Mickey Leland (D-Tex.), killed last month while flying to a refugee camp in Ethiopia.