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DR. KISSINGER

SIDE #1

DR. KISSINGER (Cont'd.):

believe that the results of that bipartisan
commission - that I chaired and in which both
Democrats and Republicans agreed on a program
to strengthen Central America--if those recommenda-
tions are implemented we can still make progress.
In the rest of Latin America the big problem
will be the debt issue.

QUESTION:

Well, since I think I have taken more time than
I had anticipated, I will ask you just two final
questions. What is your - well, prediction
on U.S./Japan relations in '87?

DR. HENRY KISSINGER:

Well, U.S./Japan relations are always charac-
terized by endless guerrilla warfare on specific
economic issues.

QUESTION:

Yes.

DR. HENRY KISSINGER:

And they're always bolstered by the fact that
both sides know that we really need each other.
And so there will be - on a day-to-day basis

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DR. KISSINGER

SIDE #1

DR. KISSINGER (Cont'd.):

there will be many disagreements. In the long-term, however, Japan and the United States are the two pillars on the opposite sides of the Pacific, and with wise leadership on both sides and with the excellent personal relationships that exist--not just between the existing leaders but between alternative leaders--I believe the fundamentals of Japan/American relations cannot only be preserved, but strengthened.

QUESTION:

All right, my final question is, overall, what is the year 1987, and if you have a message to the Japanese business community and the general public, let us know.

DR. HENRY KISSINGER:

Well, my message would be that on the economic level, we are living in a rather precarious situation. There are very few trends making for improvement and there are many - there are many dangers. And therefore, one has to be thoughtful and careful, to both the business community and the Japanese people, I would say,

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DR. KISSINGER

SIDE #1

DR. KISSINGER (Cont'd.):

that even with all the difficulties we have discussed here we ought to keep this in mind: Almost all our problems--economic or political--can be solved by policy decisions. Maybe difficult policy decisions, but decisions within our control. Almost all the Soviet problems are structural problems. They have to change the nature of their system if they want their economy really to become comparable to those of any of their neighbors. They are now in the position where even India and China are progressing faster than they are from a lower base.

So fundamentally, I'm optimistic about the future because what this means is that the shape of the future is in our own hands.

QUESTION:

Thank you very much.

[OFF-MIKE COMMENTS]

[SOUND CUT]

END INTERVIEW