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CNN Saturday Morning News

Bush, Koizumi Meet at Camp David

Aired June 30, 2001 - 09:13   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Japanese Prime Minister Junichiro Koizumi has just arrived at Camp David for a meeting with President Bush.

CNN White House correspondent Kelly Wallace is nearby. She has the latest for us -- Kelly.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Well, Miles, this meeting is billed as a chance for the two men to get to know one another. It will be their first face to face meeting. But some thorny issues are also likely to be discussed, such as Japan's ailing economy and U.S. plans for a controversial missile defense system. There may also be some discussion about another allegation of rape involving a member of the U.S. military in Japan.

(BEGIN VIDEOTAPE)

WALLACE (voice-over): Japanese Prime Minister Junichiro Koizumi headed off for his first foray on the world stage after his sweeping victory in April. Hailed like a rock star at home, he is viewed in the U.S. as a reformer with a mandate.

SEN. JOE BIDEN (D), SENATE FOREIGN RELATIONS COMMITTEE: He seems committed. He seems to be very popular. And I think he will take the right course of action.

WALLACE: President Bush is said to be intrigued by the new Japanese leader.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Together we will explore ways we can continue to strengthen our security relationship. We will talk about the prime minister's agenda for reforming and revitalizing the Japanese economy.

WALLACE: An economy marked by a series of recessions since 1990, Koizumi is seeking Mr. Bush's endorsement of his plan to clean up Japan's troubled banking system, even though these steps could mean short-term pain in the world's second-largest economy and could worsen the slowdown in the United States.

BILL BREER, CSIS, JAPAN CHAIR: We have lived with a kind of a limping Japan economy for, what, eight or nine years now, so we can probably tolerate that into the future, if there's light at the end of the tunnel. WALLACE: The two men are not likely to showcase their disagreements. Koizumi will try to convince Mr. Bush not to abandon the treaty negotiated in Japan to reduce global warming, while Mr. Bush will try to get his counterpart to fully endorse a national missile defense system, a system Japan worries would anger neighboring China.

Also at issue, growing Japanese opposition to the large U.S. military presence in Okinawa after another allegation of rape by a U.S. service member.

But this meeting is mostly about the personal, and these men might find they have very much in common. For instance, both view themselves as outsiders.

BREER: Mr. Bush came from Texas. He's not a product of Washington. Mr. Koizumi has been in the Liberal Democratic Party, but he's always been sort of a loner within the party.

(END VIDEOTAPE)

WALLACE: And so the goal, really, of this Camp David summit is for the two men to develop a bond in an informal setting so that they and their advisers can work on the issues down the road affecting the world's two largest economies -- Miles.

O'BRIEN: You mentioned the economies, Kelly, the Japanese economy still struggling. That has to be sort of a theme which recurs as this discussion goes on?

WALLACE: Absolutely. And again, that is really likely to be the issue taking center stage, because the Japanese leader has come in and unveiled a plan, basically deregulation, cleaning up Japan's banking system and trying to stimulate growth. U.S. officials say this is a good plan. They like it. The president, though, wants to hear a bit more about it.

It does, though, come with a little bit of pain, probably, in the short term for the United States, because it may mean that Japan will have some slow growth over the next couple of years. That would mean, not to get too technical, that the dollar would be stronger when compared to the yen, and that would make Japanese imports more competitive here in the United States, versus American products manufactured in the U.S.

So this could mean more of an impact on the slowdown in the United States over the next couple of years, but most analysts believe this is a risk the U.S. leader will be willing to take -- Miles,

O'BRIEN: Kelly, will there be much time for recreation, say maybe a visit to that carnival over your right shoulder there?

WALLACE: Yes, I don't think that there will be much time for that. The leaders will likely take a walk around the presidential retreat, and they will be appearing before reporters a little bit later this morning, so we should get a sense of the relationship these two leaders are developing.

O'BRIEN: All right. Hopefully you'll have some time for cotton candy later.

WALLACE: I hope so.

O'BRIEN: All right, Kelly Wallace in Thurmont, Maryland.

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