SENIOR INTERDEPARTMENTAL GROUP-INTERNATIONAL ECONOMIC POLICY NOVEMBER 17, 1983 10:30 A.M. ROOSEVELT ROOM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85M00364R000400550008-3
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: May 8, 2009
• Sequence Number: 8
• Publication Date: November 17, 1983
• Content Type: REPORT

Approved For Release 2009/05/08: CIA-RDP85M00364R000400550008-3
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SENIOR INTERDEPARTMENTAL GROUP-INTERNATIONAL ECONOMIC POLICY
November 17, 1983
10:30 a.m.
Roosevelt Room
Attendees:
Treasury
Secretary Regan (Chairman)
R. T. McNamar
Marc Leland
Office of the Vice President
Vice President George Bush
Donald Gregg
State
W. Allen Wallis
Paul Wolfowitz
Thomas Niles
Defense
Secretary Caspar
Paul Thayer
Weinberger
Agriculture
Richard Lyng
Jim Parker
Commerce
Secretary Malcolm Baldrige
Lionel H. Olmer
OMB
Alton Keel
USTR
Robert E. Lighthizer
James Murphy
CEA
William Niskanen
AID
Richard Derham
OPD
John A. Svahn
Ex-Im Bank
William Draper
NSC
Robert McFarlane
William Martin
President's Visit to Japan and Korea
Secretary Regan introduced the topic and said that the
Vice President would chair this SIG-IEP session devoted to
follow-up of the President's visit to Japan and Korea. The
Vice President noted that he did not wish to create another
bureaucratic layer in our bilateral consultations with the
Japanese. On the contrary, he wished to facilitate the
ongoing efforts to ensure that the agenda for progress estab-
lished during the President's vist would come to fruitful
results. At this time, he indicated that it was not clear
who would be his Japanese counterpart, but this would be
clarified following December elections.
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Following Paul Wolfowitz' review of the highlights of
the visit, the Vice President asked each Cabinet officer to
address his outstanding issues with the Japanese. Secretary
Regan first revigwed financial issues, with particular atten-
tion to the yen/dollar communique jointly issued by the
Ministers of Finance. The U.S. objective has been to
encourage a liberalization of Japanese capital markets and
financial structures. Through market oriented means (as
opposed to intervention), we hope to urge an internationalization
of the yen, which should help restore a more equitable
balance in the yen/dollar relationship.
Secretary Weinberger then reviewed the key defense
issues. He noted that Japan's efforts to increase their share
of their defense obligations will free up U.S. resources which
can then be channeled to other parts of the region. He also
noted recent successes in the two way flow of technology
between Japan and the U.S. Wolfowitz noted that Foreign
Minister Abe has indicated a need for the Japanese to increase
their defense spending beyond one percent of GNP.
Secretary Baldrige noted that we have many outstanding
trade problems. The yen/dollar issue is important, but we also
need to make simultaneous progress in Japanese market access.
On the energy side, we need to keep pressure on the Japanese
to buy more U.S. coal. Over the next few months, we need to
make progress in these areas, and we will have to consider how
we respond if the follow-up efforts fail.
Deputy Secretary Lyng noted that agricultural trade amounts
to some $7 billion annually. Issues like beef and citrus are
important symbolically. Under Secretary Wallis concluded the
general discussion by noting that we had also established a
working group on investment.
National Security Advisor Robert McFarlane noted that the
President went over in some depth with Prime Minister Nakasone
all the key items which Cabinet members had raised during the
intensive briefings prior to the visit. By the end of the
visit, it was agreed that progress over the coming months had
to be made and that both Japan and the U.S. were committed to
improving their trading relationship.
The Vice President then stressed again the importance of
carrying on with existing negotiations and frameworks and
that his oversight effort will be hopefully short-lived.
Secretary Regan offered a time table by suggesting that we
might target for results by the British Summit in June. Robert
McFarlane added that it would be important to have two account-
ability sessions before the Summit to review progress.
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The Vice President urged all Cabinet members to submit to
his office no later than COB Monday, November 21, a page and a
half summary identifying goals and benchmarks for key issues
of interest to them. He cautioned that they should be a real-
istic set of objectives and that we should not unduly raise
expectations. Cabinet officers should also indicate any
subjects that they do not want included. The Vice President
then indicated that he is considering the establishment of a
Working Group at Deputy/Under Secretary level to coordinate
the agenda for progress. He will designate the head of this
group at a later time. On the Japanese side, nobody expects
much to happen prior to the election, but we should be ready
for active consultations by early 1984.
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