China is one of the keys to renewed stability in Asia and to a reduction in our growing trade deficit. This deficit is becoming politically unsustainable. Moreover, for its own domestic reforms to succeed, China must open its markets to more US goods and services. The US will remain firm on a commercially meaningful WTO accession package. We are working to ensure that the June Summit is a success , and that it makes a significant contribution to our economic objectives.
Japan is the other key to resolving the Asian crisis and our trade deficit.
Its seven year economic slump has aggravated both. With 70 percent of the regions's GDP, Japan must act as an engine of growth in Asia. Its stimulus package is an important step. It must be implemented fully and promptly and be accompanied by market opening, deregulation, and reform of its banking system. Last weekend during the G-8 Summit in Birmingham, the President and Japanese Prime Minister Hashimoto announced a number of important steps Japan will undertake to open its market through greater deregulation.