Japan and the EU in East Asia

Speech by H.E. Takekazu KAWAMURA
Ambassador of Japan to the European Union
At the College of Europe In Brugge
27 September 2006

Good afternoon, ladies and gentlemen, and dear students,

First of all, I would like to express my sincere thanks to the College of Europe in Brugge, in particular to Rector Demaret for organising this event.

This is my second time to speak at the College of Europe. In April, I was given a chance to talk about Japan-EU relations at the Natolin campus. I enjoyed sharing views and opinions with the students there. This time, here at the Brugge campus, I would like to speak to you about Japan and the EU in East Asia.

East Asia is geographically quite distant from Europe. For many of you, it may also be mentally quite distant. However, the EU has been paying close attention to East Asia with good reasons I will discuss later.

I am certain that in the future, many of you, future leaders of Europe, will take an active part in interactions involving the two regions. As ambassador of Japan to the EU, I am hoping that my speech today will facilitate your understanding on the current situation in East Asia and Japan’s role there. I also hope that what you hear today will help you understand the importance of Japan-EU cooperation in the region.

  I. The Situation in East Asia

1. The Overall Situation

East Asia has been witnessing dramatic economic and political advancements in these years. This is due first to such emerging economies as the Republic of Korea and Singapore, and then to the recent developments in China and India. The rapid Asian economic miracle has created a large middle class, which in turn fuels expectations for greater freedom and democratic institutions. This trend is irreversible. The combination of economic development and political freedom will create even more “opportunities” for the region to expand its prosperity and stability.

Of course, we must not let ourselves become complacent about the many challenges that East Asia still faces. The Cold War may have ended with the fall of the Berlin Wall in 1989, but remnants of that period persist at the other end of the Eurasian Continent, most notably on the Korean Peninsula. Equally worrisome are newer threats such as terrorism, rising nationalism, and the growing development gap within and among countries in the region. There is a risk that these negative factors could overshadow the region’s enormous potential, or could even lead to instability in the region.

How then will East Asia cope with these negative factors while taking advantage of the opportunities? Let me explain to you, at the outset of the speech, the gist of three basic policies Japan is pursuing in the region:

①: To maintain the Japan-US Security Arrangements, which is a cornerstone for the stability in the region, thereby securing the deterrence against developments that could destabilise the region

②: To cooperate, in a spirit of humility and with feelings of deep remorse and heartfelt apology expressed by our leaders regarding the last War, with other Asian nations, which are pursuing the path of “prosperity and peace through democracy”, as Japan has been doing for the past 60 years.
③: To promote activities and initiatives in a broad range of areas such as finance, economic partnership, investment and cross-border issues.

2. Some of the Major Issues in the Region

(1) North Korea

As it is still fresh in your memory due to recent developments, North Korea is one of the most urgent and delicate concerns in East Asia.
The Democratic People’s Republic of Korea, DPRK, or North Korea, is still under the typical, Cold War era, dictatorial communist regime.
There are, among other things, two issues with regard to this country. One is the development of nuclear weapons and missiles capable of carrying them. This development affects the peace and security in the region. The other is the issues of abduction and human rights.

(Nuclear issue)

North Korea’s missile launches, which occurred between July 4th and 5th 2006, reminded us acutely of a possible threat to the security of Japan and other countries. The nature of the threat becomes more serious, in light of North Korea’s claim that it has developed nuclear weapons.

Against this action, the UN Security Council unanimously adopted resolution 1695 on July 15th. It condemned the launch of ballistic missiles by North Korea, sending a strong message by the international community.
The resolution demanded the ceasing of DPRK’s missile-related programme, the re-establishment of a moratorium on missile launching, a swift return to the Six-Party Talks without precondition, and efforts toward early implementation of the Joint Statement of the Six-Party Talks of September 2005.
Japan played an active and important role as a member of the Security Council in the process from the drafting to the adoption of the resolution.
In this context, I would like to emphasise the importance of the role being played by the EU, which confirmed its support for Japan’s position on this matter. In Malaysia on July 27th, Dr. Javier Solana expressed at a meeting with Mr. Aso, the Japanese Minister for Foreign Affairs, that the EU thoroughly endorsed Japan’s position in regards to the North Korean matter and that the EU shared Japan’s concerns on the missiles issue.

(Abductees and Human Rights issue)

The second issue is the unresolved problem of Japanese citizens abducted by North Korea.

From 1977 to 1983, agents of the North Korean government kidnapped an unknown number of Japanese citizens in Japan and abroad. In September 2002, Kim Jong Il, the leader of North Korea, for the first time and after years of denial, admitted directly to Prime Minister Koizumi that the North Korean authorities had kidnapped Japanese citizens. He apologised and agreed never to abduct foreign nationals again.
To date, of the sixteen identified abductees, only five Japanese have returned home since October 2002. None of the other victims have returned to Japan, and there has been no persuasive explanation from the North Korean authorities about the safety of the remaining 11 abductees.

The Government of Japan repeatedly urges North Korea immediately to allow the survivors to return home and clarify the true facts. The Thai government is also raising the issue on the abduction of its nationals. Some Europeans were also said to be the victims.

It goes without saying that abduction is clearly a violation of human rights, human dignity and fundamental rights.

Through diplomatic efforts by the EU, Japan and other countries, in December 2005, a resolution on the "Situation of human rights in the Democratic People's Republic of Korea" was adopted by a plenary session of the UN General Assembly for the first time. This resolution expressed deep concern regarding the human rights situation in North Korea, including the issue of abduction of foreign nationals. It called on North Korea to cooperate with the UN to improve its human rights situation.

I believe that the seriousness of abduction and human rights issue of North Korea has been shared by the international society as a result of the close cooperation between Japan and the EU.

(2) China: A Rising Power

(China’s development)

Now, I would like to talk about an East Asian rising power: China.

China's recent economic growth has been the marvel of the world. The Chinese economy now ranks fourth in the world after the US, Japan and Germany. Indeed it is larger than four of the G7 economies.

The Chinese economic dynamism provides opportunities, not only for Japan and the EU, but also for other countries in the world. Certainly, China faces social challenges such as growth gaps between rich and poor, between agriculture and industry, and among different regions, or problems relating to the environment, energy and water. However, it is expected that appropriate measures will sustain China’s growth.

In the area of international politics, as you can judge from the Six-Party Talks, for example, China endeavours to help resolve issues that could impact negatively on itself and the broader region. Japan welcomes this sort of constructive Chinese engagement in the region.

(China’s lack of transparency)

Yet, one cannot overlook China's growing defence budget. There has been a double-digit growth in China's defence spending for the past 18 successive years without its transparency.

Examining Chinese defence spending in 2005, the National People's Congress last year announced the figure to be 244.7 billion Yuan, approximately 29.5 billion US dollars, a 12.6 percent increase over 2004. The Chinese national defence expenditures announced for 2005 are roughly double those declared in 2000, and triple those from 1997. These figures suggest a swift-paced expansion of military expenditure.

The problem is that transparency is lacking as to how the expanded expenditure is augmenting what capabilities to achieve what military objectives.

Also, in addition to the above published figures, it is said that there is still other military-related spending. This increases the degree of non-transparency.

In order to build confidence among its partners, and to increase the predictability of the East Asian regional environment, it is expected that the Chinese government will implement policies, which are more open and accountable to its people as well as to the outside world. In other words, it is expected that China will become a more responsible and constructive global partner in the region and international community. This will be a key to achieving the ultimate goal of a “stable and prosperous East Asia”.

This view was also confirmed by the leaders of Japan and the EU at the Japan-EU Summit in April this year.

(3) Cross-Strait Issues

I should just briefly mention that another remnant of the Cold War in East Asia is the Cross-Strait, or Taiwan Strait issue.

Japan, like other members of the international community, hopes for peaceful resolution through dialogue between both sides of the strait. It is everyone’s interest that this issue will not develop into a military confrontation.

I would just like to reiterate here that Japan will keep the position stipulated in the Japan-China Joint Communiqué of 1972, in the understanding that there is but one China.

  II. An East Asia Community and Japan’s role

Now, I would like to talk about efforts to overcome difficulties and increase opportunities in the region.

(De facto Economic Integration)

According to the most recent statistics, intra-regional trade within 10 ASEAN countries + 3, namely, Japan, China and the Republic of Korea, had grown, by 2003, to account for over half of these countries’ total foreign trade, compared to over 60% for intra-regional trade within the EU. Cross-border business has become common as companies have been conducting intra-regional division-of-labour corporate strategies: a Japanese automobile company, for instance, produces transmissions in the Philippines and engines in Indonesia, and the assembly is done in Thailand. In addition, Australia, India and New Zealand have been deepening their economic relations with ASEAN + 3.

This development can be seen as the advancement toward de facto regional economic integration.

(Meetings and Fora)

Cooperation that is not necessarily confined to economic areas has also been growing through a series of intra-regional meetings and fora established.

1. The East Asia Community

As the economic realities advanced and various forms of cooperation proceeded, the idea of an East Asia community began to emerge in the early 1990s. In particular, it received significant attention on the occasion of the Asian currency crisis in 1997 and the September 11th terrorist attacks. These incidents served as catalysts to awaken people in the region to the increased importance of regional cooperation to tackle common threats.

Based on such precedents, Prime Minister Koizumi, while on an official visit to the ASEAN countries in 2002 in Singapore, called for the creation of an East Asia community, EAc.

2. The First East Asia Summit

With a view to achieving a future EAc, the first East Asia Summit, the EAS, was held in December 2005. There, leaders of the ASEAN member countries, Japan, Australia, China, India, the Republic of Korea, and New Zealand gathered in Malaysia. The President of Russia also participated as a guest.
The leaders discussed the future directions of East Asia and how the region should work towards regional cooperation.
At the meeting, Prime Minister Koizumi emphasised that the discussions should centre on the basic principles of, and approaches to, regional cooperation as well as on the responses to common issues, with a view to building an East Asia community in the future. These common issues that today's East Asia is facing are such as avian influenza, terrorism, piracy, and energy.
At a later stage of the meeting, the "Kuala Lumpur Declaration on the East Asia Summit" was adopted. A large number of the points Japan had emphasised were reflected in this document. The five major points in the Declaration are:

1. The EAS could play a “significant role” in community building in the region;

2. The EAS will be an open, inclusive, and transparent forum;

3. The participating countries of the EAS will strive to strengthen global norms and universally recognized values;

4. The EAS will focus on a wide range of areas, notably, political, security, economic, social and cultural issues;

5. The driving force of the EAS is the ASEAN Summit. The EAS will be hosted and chaired annually by an ASEAN member country and held back-to-back with the annual ASEAN Summit.
   The Government of the Philippines has offered to host the second EAS in December 2006.

Japan believes that this first East Asia Summit was an historic event in the sense that it was held, for the first time, with a view to establishing an EAc.

3. The Future Direction

Of course, our path to achieving a community will be different from that of Europe. Notably, the countries in East Asia are diverse in political systems and cultural dimensions, as well as in stages of economic development.

It is sometimes said that Asia’s diversity is a source of its strength. This captures one aspect of the truth. It should, however, be noted that not only our political systems, but also our security perceptions are far from identical. This, obviously, will not make community building any easier.

In the long run, however, it is clear that the East Asia Summit, together with other efforts in the same direction, could benefit both the region and the world at large, provided that (1) it is open and outward-looking (2) with universally recognised values such as freedom and democracy as the fundamental guiding principles, (3) while recognising the diversity of our nations.

  III. Japan and the EU in East Asia

I hope you have gained a broad idea of the situation and development in East Asia and Japan’s efforts therein. In the last chapter of my speech, I would like to discuss how Japan and the EU can work together in East Asia. The main points here are firstly, East Asia can learn from Europe about community building; Secondly, Japan and the EU can play constructive roles by sharing perceptions and views; Lastly, Japan and the EU can further dialogues between Europe and Asia on global and regional issues of common interest.

1. Learning from European experience

Despite the differences between Europe and Asia, the countries in East Asia, in our efforts for community building, would benefit greatly from the many and practical experiences of Europe. As discussed earlier, opportunities exist, and we in East Asia certainly could build, for the time being, on common interests, if not on shared values. In the long run, though, fundamental values such as democracy, human rights and good governance would have to be shared, in addition to market economy.

2. Japan-EU strategic dialogue on East Asia

On the European side, the EU plays an increasingly important and responsible role for the peace and stability, as well as for the prosperity, within the international community. The political and economic evolution in East Asia is thus a subject of particular interest to the EU.

A strategic paper by the European Commission relating to Asia for 2005-2006 confirms that the basic strategy that guides all EC actions in Asia is set down in the 2001 Commission Communication entitled ‘Europe and Asia: A Strategic Framework for Enhanced Partnerships’. The General Affairs Council then endorsed the priorities proposed in the strategy. One of the 6 objectives identified by the strategy is to “contribute to peace and security in the region and globally, through a broadening of our engagement with the region.”

Examples of such European engagement, to mention a few, are in Ache, Sri Lanka, and the Korean Peninsula.

At the same time, it cannot be denied that, in Europe, there was, until recently, a strong tendency to regard East Asia mainly as an economic market. There was not enough understanding as to the security situation in the region.

Under such circumstances, at the 2005 Japan-EU Summit, the leaders agreed that strategic dialogue between Japan and the EU on security in East Asia should be enhanced. It coincided with the period when the EU’s possible lifting of its arms embargo against China was becoming a major issue in Europe. Japan has been conveying the message to the EU that in view of the security situation in Asia, the lifting of embargo should not take place.

Four months later, in September 2005, the first Japan-EU Dialogue on the East Asian Security Environment was held in Brussels.

Through the dialogues, the EU has come to better understand the security situation in East Asia.

Realising the importance of continuing such a dialogue, at the Japan-EU Summit in April of this year, the leaders again endorsed enhancing and continuing the dialogue. The second Dialogue was just convened in June 2006 to the satisfaction of both sides.

3. The ASEM

Lastly, I will touch briefly upon the dialogue between Asia and Europe on global and regional issues of common interest. Both Japan and the EU contributed greatly to the enhancement of the dialogue.

The 6th Asia-Europe Meeting, or the ASEM, at the level of Head of State and Government took place in Helsinki about two weeks ago (from the 10th to the 11th of September). I assume that many of you heard about it in the news.

The Summit marked the tenth anniversary of the ASEM. The first ASEM was held in 1996 in Bangkok, with the aim of strengthening the relationship between Asia and Europe, two regions undergoing dynamic changes and development, providing an opportunity for discussions on global issues in the field of political, economic and cultural matters.

Due to the increase in the number of EU member states, the ASEM 6 was the largest ever meeting, involving the Heads of State and Government from 13 Asian (10 ASEAN+3) and 25 European nations as well as the President of the European Commission. To give you an idea of the size of its membership, the ASEM is a forum which accounts for about 40% of the population, 50% of gross domestic product (GDP) and 60% of trade in today's world.

The Helsinki Declaration on the Future of ASEM adopted at the meeting emphasised, in particular, ASEM’s continuing vital role as a framework for dialogue and cooperation. It reconfirmed ASEM’s mission as a partnership between equals committed to multilateralism and a fair, just and rule-based international order with a strong UN at the core.

The ASEM will commence its second decade by focusing on key policy areas such as;

• Strengthening multilateralism and addressing global threats of common concern;

• Globalisation, competitiveness and structural changes in the global economy;

•  Health;

• Science and technology;

• Sustainable development; and

• Inter-cultural and inter-faith dialogue.

It is hoped that the members of the ASEM will take advantage of this particular forum, together with its newly established virtual secretariat, and implement practical cooperation in the future.

  IV. Conclusion

(Global partners sharing fundamental values)

I was about at your age at the late 1960’s, beginning the career of a diplomat here in Europe.

I still remember the event of May 1968 in France. These long days of unrest, which later spread to other European countries, constituted a turning point. A turning point for the genuine democratisation of the European society after almost 20 years since the end of the second world war.

Yet despite this kind of social upheaval, the EEC was moving on. It evolved into a formal customs union in 1968, after 10 years of its establishment.

In East Asia, at that time, the war in Vietnam began to intensify. The security situation in the region was fragile. Against this background, the Association of the Southeast Asian Nations, ASEAN, was born in 1967. History has shown that it served as the main embryo for regional unity in Asia.

Since then, four decades have passed. As you can see, there have been tremendous developments within East Asia, within Europe, and between Asia and Europe. Both Asia and Europe have become increasingly important in shaping the world.

I believe that Japan and the EU, global partners sharing same values and similar interests, could effectively work together in East Asia, as well as other parts of the world.

As I said at the beginning, I very much look forward to many of you being actively engaged in such efforts in the future, and contributing to peace and stability in East Asia, and in the world at large.

I wish you good luck on your bright future. Thank you