The ability of the massive $3 trillion Japanese economy to pick itself up from recession and help in worldwide economic recovery is much more on the mind of U.S. policymakers than whether the Japanese Self-Defense Forces will join us in a joint effort to develop an advanced theater missile defense system.

       Both issues are important, but whether or not a new Japanese spending package of some $57 billion is enough to energize the sluggish Japanese economy is what Washington is concentrating on, not defense issues, now extremely marginalized.

       American policymakers suggest increased spending plus income tax cuts to enable the Japanese economy to help the United States pull the rest of the world out of a prolonged global economic turndown. Japanese Finance Minister Hirohisa Fuji thinks Japan is doing enough, but American spokesman Bowman Cutter, deputy director of the National Economic Council, is not too enthused.

       In defense, one of the first things the new U.S. ambassador to Japan, former Vice President Walter Mondale, stated publicly was his hope that Japan would join the United States in our new Theater Missile Defense program, which replaces the once-touted SDI program. While interested, the new cabinet of Prime Minister Morihiro Hosokawa notes that the idea could run into problems if it is seen as "collective defense," which some in the new coalition believe runs counter to Japan's "peace" constitution.

       From this observer's view, the United States can expect the new Hosokawa government to be much more consumer-oriented than previous LDP governments; it is already starting to enthusiastically look at major economic restructuring that will ease regulations on business and allow greater competition and consumer benefits.

       Thus, U.S.-Japan trade relations will get better. In defense, however, the Hosokawa cabinet will not be as forthcoming as previous LDP cabinets; in this regard, our security relations may become "correct" but somewhat more reserved than before.

       By the close of the Tokyo G-7 meeting and the subsequent U.S.-Japan bilateral agreement, the American and Japanese bodies politic saw a new American president who was vibrant, dynamic, and most of all, engaging.