© Institute of International Relations and Area Studies, Ritsumeikan University The Revival of “Northeast Asia” in Japan: Why Have Japanese Opinion Leaders Begun to Speak of “Northeast Asia”?* NAKAGAWA Ryoji** Abstract The term “Northeast Asia” is undergoing a revival in Japan, with many opinion leaders discussing and proposing strategies for Northeast Asia. In contrast, only 20 to 30 years ago, although many opinion leaders discussed South Korea, North Korea (1), China and the Soviet Union separately, there was no discussion of Northeast Asia as a region in a political or economic sense and the general public seldom came across the term “Northeast Asia”. The “revival” in interest in Northeast Asia is the combined result of three movements: the movement from a “Japan Sea Rim Economic Area” to economic cooperation within “Northeast Asia”; the movement to establish a new “Northeast Asia Common House” security order as proposed by WADA Haruki and KANG Sang-jung; and the movement toward an upgrading of the role of Japan, China and South Korea in the ASEAN+3 framework, which offers the most effective framework so far for the economic integration of East Asia. This “boom” is a kind of mosaic rather than a unified movement, but there are points of similarity among its parts. Cooperation in Northeast Asia requires a comprehensive approach that brings together the three movements. Keywords: Northeast Asia, Collaborative Development, Economic Cooperation, Collective Security, Japan RITSUMEIKAN INTERNATIONAL AFFAIRS Vol.3, pp.81-104 (2005). * The present article is based on a lecture given at Ritsumeikan Doyo Koza (Ritsumeikan Saturday Seminar) on June 26th 2004 and a presentation made at the International Joint Symposium by Ritsumeikan University and Yanbian University at Yanbian University, China, on September 1 2004. The author appreciates the useful comments made by discussion participants. ** Professor of Development Economics, Faculty of International Relations, Ritsumeikan University, e-mail:rnt20014@ir.ritsumei.ac.jp 82 RITSUMEIKAN INTERNATIONAL AFFAIRS 【Vol. 3 Introduction The term “Northeast Asia” is undergoing a revival in Japan, with many opinion leaders discussing and proposing strategies for Northeast Asia. In contrast, only 20 to 30 years ago, although many opinion leaders discussed South Korea, North Korea,1) China and the Soviet Union separately, there was no discussion of Northeast Asia as a region in a political or economic sense and the general public seldom came across the term “Northeast Asia” in newspapers, journals or on television. The purpose of the present article is to analyze the background to this revival and to show that this “Northeast Asia boom” results from a combination of three strands of opinion. Ⅰ. A SHORT HISTORY OF “NORTHEAST ASIA” IN JAPAN 1. Before WWII The date of the introduction of the term “Northeast Asia” from China is not clear, but before WWII, the Imperial Universities of Japan had established Manchuria, Mongolia, Korea and China as a field of research with a view to imperial expansion into these countries. The concept of East Asia (“To-a”) was established but it referred mainly to China, including Manchuria and part of Mongolia. In 1940, the Japanese government released a plan for a “Greater East Asia Co-prosperity Sphere” in which “Greater East Asia” included Southeast Asia. (“co-prosperity” however did not mean prosperity for Asian countries on an equal basis; rather these countries were forced under the sway of Japan). The change of term was a reflection of the change in the imperial policy of Japan 2. From the end of WWII to the 1970s After WWII, the Ministry of Greater East Asia was abolished and the Bureau of Asia, including the Office of China and the Office of Northeast Asia and Southeast Asia, was set up within the new Ministry of Foreign Affairs in imitation of the organization in the United States. The new 1) In the present article, in line with popular English usages such as China and South Korea, “North Korea” is used as an abbreviation of the Democratic People’s Republic of Korea. The acronym DPRK is however also used in citations and where it forms part of a proper noun. 2005】 The Revival of “Northeast Asia” in Japan(NAKAGAWA) 83 word “Northeast Asia” was a translation from English. In 1951, in the middle of the Korean War, the US announced a Proposal for the Development of Southeast Asia to constrain the spread of communism. In response to the Proposal, and also with an element of selfinterest, the YOSHIDA administration of Japan drafted a plan for economic cooperation with Southeast Asian countries. It was against this background that the South East Asia Treaty Organization (SEATO) was set up in 1954. After its demise in 1977, it was replaced by the Association of Southeast Asian Nations (ASEAN). The concept of Southeast Asia thus became well-established in Japan. At the same time, historians began to use the term East Asia (“Higashi Ajia”) to include China, Korea and Japan to avoid “To-a” which reminded of Japanese imperialism and “Northeast Asia” which not only was a translation from English but also distorted the history of traditional Sino-central order in East Asia. In any case, the fact of the Cold War in Northeast Asia prevented its recognition as a unified region. Although the Office of Northeast Asia in the Ministry of Foreign Affairs had not changed name, Japanese people seldom came across the term “Northeast Asia” in newspapers, magazines or on television from the 1950s to the 1970s. Ⅱ. “J APAN S EA R IM ” TO “N ORTHEAST A SIA ”: MOVEMENT IN THE NORTHEAST ASIA “BOOM” THE F IRST The turning point came in the 1980s, when cities located on the domestic Japan Sea coast, especially Niigata and Shimane, began to advocate a “Japan Sea Rim Economic Area.” The aim was to revive the cities through cooperation with the Soviet Union, China and North and South Korea In the process of Japan’s rapid economic growth from the 1950s to the 1970s, the Japan Sea Rim area had lagged behind the “Pacific Rim”. A key concept for remedying this situation was the “Japan Sea Rim Economic Area,” a plan promoted by the end of the Cold War in the region. The Soviet Union began the process of “Perestroika” (restructuring) in 1986 and President Gorbachev visited Japan seeking new diplomatic relations between the two countries. China started its Reform and Open-door Policy (“Gaige Kaifang” in Chinese) in 1978, establishing normal diplomatic relations with the Soviet Union in 1989 and with South Korea in 1992. South Korea established normal diplomatic relations with the Soviet 84 RITSUMEIKAN INTERNATIONAL AFFAIRS 【Vol. 3 Union in 1990, and North and South Korea acceded to the United Nations simultaneously in 1991. The Tumen River Development Project, in which the Soviet Union (Russia), China and North Korea cooperated in the development of a shared port and special economic zone, was launched under an initiative of the United Nations Development Program (UNDP) in 1991. Although the Japanese government did not participate formally, the project had a positive impact in Japan on the move toward a “Japan Sea Rim Economic Area.” The initiative for a “Japan Sea Rim Economic Area” made real progress, but the name “Japan Sea” troubled China and North and South Korea, as North and South Korea call it the “East Sea” and China has no coastline on the Japan Sea. North and South Korea and China therefore tended to use the term “Northeast Asia” rather than “Japan Sea Rim”(Shimakura ed.1992 pp.2-4). Moreover, the “Japan Sea Rim Economic Area” movement reminded some Korean opinion leaders of Imperial Japan’s “Greater East Asia Co-prosperity Sphere.”2) Japan Sea Rim cities were reluctant to use the term “Northeast Asia” for fear of being neglected in economic terms, but gradually came to accept it in the interests of cooperation with North and South Korea and China. Under the leadership of OHKITA Saburo, former Japanese minister of foreign affairs, and Dr. C HO Lee-jay of Korea, the Northeast Asia Economic Forum (HQ: Hawaii, chairman: CHO Lee-jay ) was set up as an International NGO. Although the term “Japan Sea Rim” is still used in the names of institutions and academic associations, for instance the Association for Japan Sea Rim Studies and the Research Institute for the Japan Sea Rim (Niigata University), it is gradually being displaced by “Northeast Asia”. For example, Niigata Prefecture and City, which have Japan’s main port serving Russia and North Korea, led the way in setting up the Economic Research Institute for Northeast Asia (ERINA) with ten other prefectures in 1992. ERINA is Japan’s main center for study of the Northeast Asia Economy and has raised the level of relevant research. 2) KIM Young-ho, the eminent Korean economist, argues that there are two currents in the movement for a “Japan Sea Rim Economic Area”. The first aims at peaceful cooperation based on a reappraisal of history and at the creation of an economic area based on the horizontal division of production. The second aims to establish a logistical response to economic friction with the US and Europe, that is, the re-creation of the “Greater East Asia Co-prosperity Sphere” (Kim and Twu 1991). 2005】 The Revival of “Northeast Asia” in Japan(NAKAGAWA) 85 Curiously, ERINA’s Japanese name is Economic Research Institute for Japan Sea Rim. Shimane Prefecture has also promoted the initiative for a “Japan Sea Rim Economic Area,” but since the International Symposium for Japan Sea Rim Cooperation held in 1992, it has used the term “North East Asia Region.” Shimane Prefecture University, established in 2000, has an Institute for North East Asian Research. In 1993, Kyoto Prefecture and Maizuru City set up the Japan Sea Rim Academic Forum,3) which has not yet changed its name, but tends to use “Northeast Asia” in the name of symposia and so on. Toyama Prefecture held a Governors’ Summit of the Japan Sea Rim in 1992 but since the second summit in 1993 it has used the term “Northeast Asia” rather than Japan Sea Rim; it set up “The Association of North East Asia Regional Governments” in 1998. Although the initiative for a “Japan Sea Rim Economic Area” has unintentionally contributed to the revival of “Northeast Asia” and although the cities involved do exercise influence on cooperation in Northeast Asia, if this cooperation had been limited to inter-city level, the concept of Northeast Asia would not have become so popular in Japan. Sakata (2001) pointed out that many of the initiatives for a “Japan Sea Rim Economic Area” were too idealistic and philosophical, neglecting the specificity of Northeast Asian countries, especially their peripheral position in the world economic system. The second and third movements were thus necessary conditions for the Northeast Asia “boom”. Ⅲ. THE NORTH KOREA PROBLEM AND SECURITY IN NORTHEAST ASIA: THE SECOND MOVEMENT IN THE NORTHEAST ASIA “BOOM” 1. The North Korea Problem since the 1990s Amid the worldwide collapse of socialist states, North Korea (Democratic People’s Republic of Korea: DPRK) began in the 1990s to seek a change in its diplomatic relations with the US. The US however required a halt to nuclear development as the prerequisite condition of normal diplomatic relations. As a bargaining tactic, North Korea declared 3) The author of the present article is a member of the Forum. 86 RITSUMEIKAN INTERNATIONAL AFFAIRS 【Vol. 3 its withdrawal from the Nuclear Nonproliferation Treaty (NPT). By early 1994, tensions had mounted over international inspection of North Korea’s nuclear sites. In 1994, the US and North Korea reached agreement that North Korea would shut down its nuclear reactors and expel UN monitors, while the US would transfer light-water reactor technology and supply heavy oil in the meantime. Some time after the agreement, on July 8, 1994, the founder of the North Korean state, president KIM Il-sung, died and was succeeded by his son KIM Jong-il. Following protracted negotiations over the country’s suspected atomic weapons, an agreement was reached in June 1995. As a result of floods and the historical failure of the national agricultural policy, famine struck the nation’s estimated 24 million inhabitants in 1998 and 1999. Two years of floods were followed by severe droughts in 1997 and 1998, causing devastating crop failures. Because of the lack of fuel and machinery parts and weather conditions conducive to parasites, only 10% of North Korea’s rice fields could be worked. Under these circumstances, KIM Jong-il revised the constitution and was elected Chairman of the National Defense Commission; a position accorded the nation’s “highest administrative authority” in 1998. In September 1998, North Korea launched a test missile over Japan, claiming it was simply a scientific satellite. This launch caused alarm in Japan, and much of the rest of the world, as to North Korea’s intentions regarding reentry into the nuclear arms race. The incident also caused a profound changed in Japanese public opinion on defense, as it was the first time since WWII that the nation had experienced real military fear of a foreign country. In 1999, North Korea agreed to allow the United States to conduct inspections of a suspected nuclear development site, Kumchangri, which North Korea admitted had been devised for “a sensitive military purpose.” In exchange, the U.S. would increase food aid and initiate a program to introduce potato production. In the fall of 1999, North Korea had begun to recover from four years of severe famine. Tensions with South Korea eased dramatically in June 2000, when South Korea’s president, K IM Dae-jung, met with North Korea’s President KIM Jong-il in Pyongyang. The summit marked the first ever meeting of the two countries’ leaders. But in January 2002, George W. BUSH, president of the US, described 2005】 The Revival of “Northeast Asia” in Japan(NAKAGAWA) 87 Table 1 Pyongyang Declaration Japan-DPRK Pyongyang Declaration Japanese Prime Minister Junichiro Koizumi and Chairman Kim Jong-Il of the DPRK National Defense Commission met and had talks in Pyongyang on September 17, 2002. Both leaders confirmed the shared recognition that establishing a fruitful political, economic and cultural relationship between Japan and the DPRK through the settlement of unfortunate past between them and the outstanding issues of concern would be consistent with the fundamental interests of both sides, and would greatly contribute to the peace and stability of the region. 1. Both sides determined that, pursuant to the spirit and basic principles laid out in this Declaration, they would make every possible effort for an early normalization of the relations, and decided that they would resume the Japan DPRK normalization talks in October 2002. Both sides expressed their strong determination that they would sincerely tackle outstanding problems between Japan and the DPRK based upon their mutual trust in the course of achieving the normalization. 2. The Japanese side regards, in a spirit of humility, the facts of history that Japan caused tremendous damage and suffering to the people of Korea through its colonial rule in the past, and expressed deep remorse and heartfelt apology Both sides shared the recognition that, providing economic co-operation after the normalization by the Japanese side to the DPRK side, including grant aids, long-term loans with low interest rates and such assistances as humanitarian assistance through international organizations, over a period of time deemed appropriate by both sides, and providing other loans and credits by such financial institutions as the Japan Bank for International Co-operation with a view to supporting private economic activities, would be consistent with the spirit of this Declaration, and decided that they would sincerely discuss the specific scales and contents of the economic co-operation in the normalization talks. Both sides, pursuant to the basic principle that when the bilateral relationship is normalized both Japan and the DPRK would mutually waive all their property and claims and those of their nationals that had arisen from causes which occurred before August 15, 1945, decided that they would discuss this issue of property and claims concretely in the normalization talks. Both sides decided that they would sincerely discuss the issue of the status of Korean residents in Japan and the issue of cultural property. 3. Both sides confirmed that they would comply with international law and would not commit conducts threatening the security of the other side. With respect to the outstanding issues of concern related to the lives and security of Japanese nationals, the DPRK side confirmed that it would take appropriate measures so that these regrettable incidents, that took place under the abnormal bilateral relationship, would never happen in the future. 4. Both sides confirmed that they would co-operate with each other in order to maintain and strengthen the peace and stability of North East Asia. Both sides confirmed the importance of establishing co-operative relationships based upon mutual trust among countries concerned in this region, and shared the recognition that it is important to have a framework in place in order for these regional countries to promote confidence-building, as the relationships among these countries are normalized. Both sides confirmed that, for an overall resolution of the nuclear issues on the Korean Peninsula, they would comply with all related international agreements. Both sides also confirmed the necessity of resolving security problems including nuclear and missile issues by promoting dialogues among countries concerned. The DPRK side expressed its intention that, pursuant to the spirit of this Declaration, it would further maintain the moratorium on missile launching in and after 2003. Both sides decided that they would discuss issues relating to security. 88 RITSUMEIKAN INTERNATIONAL AFFAIRS 【Vol. 3 Prime Minister of Japan Junichiro Koizumi Chairman of the DPRK National Defense Commission Kim Jong-Il September 17, 2002 Pyongyang (Provisional Translation by the Ministry of Foreign Affairs of Japan) North Korea as part of an “axis of evil.” Such open hostility marked a dramatic shift in U.S. policy toward North Korea from the CLINTON administration’s engagement policy. In spite of the antagonistic BUSH policy, KOIZUMI Junichiro, prime minister of Japan, promoted the normalizing of diplomatic relations between Japan and North Korea. In September 2002, KOIZUMI visited Pyongyang, and Japan and North Korea announced the “Pyongyang Declaration.” The North Korean government unexpectedly acknowledged that it had abducted about a dozen Japanese citizens in the 1970s and 1980s for the purpose of training North Korean spies. In October 2002, North Korea admitted that it had violated the 1994 agreement freezing its nuclear-weapons program and had in fact been developing nuclear bombs. In response to this “pendulum diplomacy” (Shigemura, 2000) of North Korea, leaders of both conservative and liberal opinion in Japan have voiced a wide range of opinions. North Korea has become one of the hottest topics in Japanese politics, journalism and academic research. 2. “Northeast Asian Common House” Against this background, WADA Haruki and KANG Sang-jung proposed a vision for a new Northeast Asian order which they named “Tohoku Ajia Kyodo no Ie” [Northeast Asian Common House].4), 5) 4) MORISHIMA Michio, an internationally renowned economist, has proposed a Northeast Asian Community (NEAC) in Morishima (2000) and elsewhere, and his proposals have had a great impact on Japanese academics. HARA Yonosuke, a Tokyo University professor and a major researcher of the East Asian economy, was inspired by Morishima’s book and wrote Hara (2002), which also had great influence on Japanese academics. Morishima (2000) also influenced WADA and KANG, but because the Japanese version is entitled “Higashiajia Kyodotai” [East Asia Community], it did not contribute to the revival of the term “Northeast Asia” in Japan. 2005】 The Revival of “Northeast Asia” in Japan(NAKAGAWA) 89 WADA, emeritus professor of Tokyo University, is a well-known scholar on Russian and Korean history, author of path-breaking works on the Korean War, Japan-Korea relations, and the development of North Korea. As an influential opinion leader, he is now a key figure in the Japanese movement to normalize relations with North Korea and serves as the secretary general of the Association for the Normalizing of Japan-North Korea Relations, an organization including both liberals and conservatives and headed by MURAYAMA Tomiichi, former prime minister in a coalition administration between the LDP (Liberal Democratic Party of Japan), SDP (Social Democratic Party) and New Party Sakigake. It was WADA who called for the establishment of a “Northeast Asian Common House for Humanity” (“Tohoku Ajia Jinrui Kyosei no Ie” in Japanese) in 1990 and for a “Northeast Asian Common House” (“Tohoku Ajia Kyodo no Ie” in Japanese) in 1995. He welcomes the Japan-2002 North Korea Summit and Pyongyang Declaration of KOIZUMI and KIM Jong-il and the subsequent Six-Party Talks on North Korean Issues. He comments: A six-sided conference meant a conference involving North and South Korea, the US, China, Japan and Russia. The Japan-North Korea Summit and the Pyongyang Declaration presented the first occasion for Japan to raise the banner of a new regionalism since it turned its back on regionalism following the miserable end of the Greater East Asian idea and immersed itself in Japan-US bilateralism (Wada, 2003a) He also praised the inauguration speech of South Korean President ROH Moo-Hyun on February 25 2003 and the initiative “Toward a Peaceful and Prosperous Northeast Asia” proposed by President ROH.6) At the same time, however, he insists that priority be given to peace, and above all to 5) 6) WADA, KANG and figures close to them use the term “Tohokuajia” [East-north Asia] rather than “Hokutoajia” [Northeast Asia] because, as they claim, the former term reflects the standard usage of Japanese, Chinese and Korean while the latter is an anomaly resulting from a direct translation of the English. In the present article, however, as there is no such English term as “East-north,” both “Tohokuajia” and “Hokutoajia” are translated as “Northeast Asia”. This translation does not imply support for “Hokutoajia” and rejection of “Tohokuajia.” The ROH Moo-hyun administration of South Korea released its “New Initiative on Peace and Prosperity in Northeast Asia” and implemented “the Rules of the Presidential Committee on a Northeast Asian Business Hub” (Presidential Decree No. 17955) in 2003, <http://www.nabh.go.kr/warp/en/introduction/history/>. Regarding this Initiative, see Presidential Committee on Northeast Asian Business Hub, 2003. 90 RITSUMEIKAN INTERNATIONAL AFFAIRS 【Vol. 3 the abandonment of nuclear weaponry by North Korea, and asserts the effectiveness of the Six-Party Talks. He comments further: President ROH Moo-Hyun’s design was to begin with the building of an economic community and leave till last the security community. But, as the president himself said, a systematic framework for the establishment of peace on the Korean peninsula is necessary. It is the top priority. The first step is to have North Korea abandon its plans for nuclear development. North Korea wants negotiations with the US, but it is already doubtful whether a stable framework can be reached in negotiations between the US and North Korea. Would it not be better to draw up an agreement between the six countries, under which Japan and North and South Korea pledge not to construct nuclear weapons while the US, Russia, and China pledge nonuse of such weapons in this region? It is also desirable for a treaty on peace on the Korean peninsula to be drawn up between the four countries that were parties to the Korean War, and for Russia and Japan then to issue statements supporting it (Wada, 2003a). KANG, a Tokyo University professor, is an oversea Korean born and brought up in Japan and is a well-known scholar on European modernism and Japanese nationalism, overseas Koreans and Japanese politics. Through his frequent contribution to television programs and journals, he is one of the most influential current liberals. He too is a key figure in the Japanese movement to normalize relations with North Korea. Like WADA, KANG has praised the Six-Party Talks on North Korean Issues and places emphasis on their historical meanings. That is, historically the Korea peninsula has been the hot and cold “battlefield” of four powerful countries, China, Russia, the US and Japan. Therefore, establishing a stable and peaceful Northeast Asia Security System with a peaceful Korean peninsula at its core has a historical meaning. In the development of the relevant framework, he asserts that a “unified,” “nonnuclear” and “permanently neutral” Korean peninsula should be the core of a Collective Security System for Northeast Asia. A special role is given to the network of overseas Koreans in China, Russia and Japan (Kang, 2001). To avoid misunderstanding of the political background to the North Korea problem, it should be pointed out that there is a curious twist to 2005】 The Revival of “Northeast Asia” in Japan(NAKAGAWA) 91 Japan’s North Korea policy. The present prime minister of Japan, KOIZUMI, is at the same time the president of the LDP, which is the governing party of Japan, and, contrary to its name, a conservative party. The assertions of WADA and KANG are close to those of the opposition party under the 1955 regime. KOIZUMI, as a “theatrical politician,” tends to use political means to garner popular support for his administration. Despite their historical meaning, he regards the Japan-North Korea Summit in 2002 and 2004 and the Pyongyang Declaration as a kind of personal “performance.” Some conservative politicians have supported him out of interest in potential economic development as a result of normalization. Many Japanese, including both conservatives and liberals, have praised the results of the summit conference, but the political results are not so simple to assess. On the conservative side, many politicians have on the one hand praised the results obtained in the form of KIM Jong-il’s admission of responsibility for the abductions and the return of five abductees, but criticize KOIZUMI with the claim that the Japan-North Korea Normalization Talks are premature while the abduction issue remains unresolved and the development of nuclear weapons continues. A good number of conservative politicians and journalists are pressurizing the Japanese government to prioritize the cessation of nuclear weapons development and especially the solution of the abduction problem ahead of normalization of diplomatic relations. For the liberal side, including social democracy and communism, the Japan-North Korea Summit of 2002 had both positive and negative effects. The Japan-DPRK Pyongyang Declaration contains many points which reflect the demands of liberals but, at the same time, the admission of abduction by KIM Jong-il proved a shock to some liberals, especially politicians close to the General Association of Korean Residents in Japan (Zainichi Chosenjin Sorengokai: Chosen Soren) who had denied the fact of the abduction. The SDP, for example, which had a friendly relationship with Chosen Soren and North Korea, denied the fact of the abduction many times. Although the Japanese Communist Party (JCP) broke off its friendly relationship with Chosen Soren and North Korea in 1968, it was criticized for promoting the movement for “return” to North Korea in the 1950s before the break. 92 RITSUMEIKAN INTERNATIONAL AFFAIRS 【Vol. 3 Previously, in the policy area of North and South Korean issues, Japanese liberals had stressed compensation for Japanese colonialism in the period from 1910 to 1945, and above all for the forced migration to Japan, forced labor in Japan, and the exploitation of comfort women. But with the fading of the memory of WWII among the Japanese, the fact of the abduction, which is an infringement of the human rights and the sovereignty of Japan, has weakened the validity of this approach. The “Northeast Asia Common House” initiative has the potential to replace the past-oriented policy on North Korea which is the traditional approach of Japanese liberals with a future-oriented policy, thus transcending the limitations of the traditional liberal approach and gaining acceptability among conservatives, who are reluctant to support compensation for colonialism and other actions. The “Northeast Asia Common House” has thus become the new approach to North Korea for Japanese liberals. At the same time, this approach is more acceptable to conservatives who wish to cooperate with liberals on the North Korea problem. 3. Northeast Asia” in the Policies of Political and Research Bodies in Japan (1) Social Democratic Party (SDP) The Social Democratic Party (known in English as the Japan Socialist Party (JSP) until February 1991 and then as the Social Democratic Party of Japan until January 1996) was originally formed in November 1945 through the merger of various prewar proletarian parties. Following its reunion in 1955, it became the most influential opposition party to the LDP. The relationship between the JSP and the Workers Party of Korea (WPK), which is the governing party of North Korea, started in 1963, and, after the break in relations between the Japanese Communist Party (JCP) and the WPK in 1968, the JSP played the main mediating role between Japan and North Korea. In 1986, the SDP abandoned the platform adopted in 1955 and switched to a policy line similar to that of the social democratic parties of Western Europe. In addition to this policy line change, the 1980s saw a broadening of the movement for normalization of relations with North Korea to include the LDP and part of the Komei Party, accompanied however by a tendency to avoid criticism of acts of terrorism and abduction by North Korea. The enlargement of the movement led to a joint statement by the WPK, LDP and SDP in 1990, but the SDP kept its spe- 2005】 The Revival of “Northeast Asia” in Japan(NAKAGAWA) 93 cial status as a friend of the WPK. In June 1994, a new coalition of the SDP, LDP, and Sakigake came to power. The SDP Chairman MURAYAMA Tomiichi became Japan’s prime minister and the SDP extensively overhauled its basic platform in September 1994. Since however Japan-North Korea talks on the normalization of relations had been interrupted since 1992 because of the abduction issue, the MURAYAMA administration made little contribution to normalization. Since the fall of the coalition administration and the transfer of more than half of its parliamentarians to the Democratic Party of Japan, the political influence of the SDP has weakened. Moreover, the acknowledgement by North Korea of its acts of abduction has seriously damaged the SDP. It was against this background that DOI Takako, ex-chairman of the SDP, proposed the “Creation of a Comprehensive Security System in Northeast Asia” on August 14, 2000, and the “Creation of a Non-nuclear Area in Northeast Asia.” SDP leaders are currently exchanging opinions on these proposals with political leaders of other countries. (2) Japanese Communist Party (JCP) The Japanese Communist Party was formed in 1922 as the Japanese branch of Comintern, which was then the center of the international communism movement led by Russia. In the 1950s, the JCP actively supported the movement for “return” to North Korea organized by the International Red Cross and other bodies. The JCP and the WPK initiated relations at the end of the 1950s and maintained a friendly relationship due to their similar policy of independence from the Soviet Union until 1968. FUWA Tetsuzo, JCP Central Committee Chair, wrote two major changes took place in North Korea in that year. One was the inception of the personality cult of President KIM Il-sung. The other was the threat of an armed attack on South Korea under the slogan “Southward Advance”. The JCP sent a delegation to warn against this policy, which led to a break in relations between the two parties. Subsequently, the JCP publicly criticized North Korean terrorism in Rangoon (now renamed Yangon) in 1983 and HASHIMOTO Atsushi, JCP Representative, raised the abduction issue for the first time in the Japanese Congress in March 1988. After the Taepo Dong missile launch in the autumn of 1998, the JCP changed its attitude to North Korea. The JCP proposed ending the blame game and opening a channel for talks to avoid disastrous consequences. The JCP now proposes 94 RITSUMEIKAN INTERNATIONAL AFFAIRS 【Vol. 3 that the following three objectives be pursued: firstly, the prevention of war or conflict in the Korean peninsula; secondly, the resolution of the abduction issue; and thirdly, the settling by Japan of the ‘legacy of the past’. In connection, it is relevant for the purposes of the present discussion that FUWA has commented: “This objective is very important to Japan. If war or conflict breaks out, it will directly affect and even damage Japan as well as affect East Asia and the world. This is why we call for the resolution of the North Korea questions as part of efforts to achieve peace and stability in Northeast Asia” (Fuwa, 2004: 2). (3) The Democratic Party of Japan (DPJ) The Democratic Party of Japan (DPJ) was founded in 1998 under the leadership of KAN Naoto and HATOYAMA Yukio with the aim of forming a party which could achieve power under a two-party system like that of the US or UK. Against the background of the end of the Cold War in the world and the end of the 1955 political order in Japan, this strategy succeeded in attracting both conservative and liberal politicians and, under a singleseat electoral district system, made the DPJ the second biggest party next to the LDP. While some DPJ parliamentarians, especially those who joined from the SDP, support the Japan-North Korea normalization of relations and are members of the Group of Parliamentarians for Friendly Japan-DPRK Relations (“Nitcho Yuko Giin Renmei”: abbreviated in Japanese to “Nitcho Yuko Giren”),7) other, or sometimes even the same, DPJ parliamentarians support the movement to resolve the abduction issue and are leading members of the Group of Parliamentarians Committed to Gaining the Return of Japanese Citizens Abducted by North Korea (“Kitachosen ni Rachi sareta Nipponjin wo Soki ni Kyushutsu surutameni Kodosuru Giin Renmei,” abbreviated to “Rachi Giren”). For the DPJ as a party, the resolution of the problems of abduction and nuclear weapons development takes priority over the normalization of relations and the party is relatively critical of the Japan-DPRK Pyongyang Declaration. It is notable nevertheless that the DPJ has suggested the creation of a “Northeast Asia 7) For a list of members, see the homepage of “Nitcho Yuko Giren.” 2005】 The Revival of “Northeast Asia” in Japan(NAKAGAWA) 95 Forum” to promote an atmosphere of friendship and cooperation in Northeast Asia.8) (4) The National Movement for Normalization of Japan-DPRK Relations (“Nitcho Kokko Sokushin Kokumin Kyokai”) As mentioned above, this organization is headed by M URAYAMA Tomiichi, ex-chairman of the SDP and ex-prime minister of the LDP-SDPSakigake coalition administration. WADA Haruki is the secretary general of this organization. Although the influence of the SDP is reflected in its leading members and its policy, this organization includes some conservatives among its most prominent members . A declaration by the organization states: “Normalization of JapanDPRK relations and economic assistance to the DPRK from Japan, linked with North-South cooperation in the Korean peninsula, should build the basis for peace in Northeast Asia, and is in the interest of all the countries and people of our region” <http://www5d.biglobe.ne.jp/~tosikenn/kyokai1.html>. (5) The National Institute for Research Advancement(NIRA) The great role of the National Institute for Research Advancement (NIRA) in policy-making on Northeast Asia cannot be underestimated. NIRA is an independent policy research body established on the initiative of leading figures from Japan’s industrial, academic and labor communities. The Institute was founded in 1974 under the National Institute for Research Advancement Act and is funded through an endowment made up of capital contributions and donations from both the public and private sectors. NIRA has taken great interest in the North Korea issue and published many reports on this theme. NIRA lays stress on the environment and energy problems of Northeast Asia. In 2003, it announced a “Grand Design for Northeast Asia” which it presented as the solution to the region’s environment and energy problems (the NIRA Working Group on a Grand Design for Northeast Asia 2003, NIRA Working Group on Environment-oriented Utilization of Energy in Northeast Asia, 2004). The NIRA Working Group on a Grand Design for Northeast Asia (2003) stated that cooperation between Japan and Northeast Asia is expected to deepen for seven reasons. (8) See the Manifesto of the DPJ on North Korea problems, available at <http://www.dpj.or. jp/seisaku/sogo/manifesto/index/08_01.html> (Japanese only) 96 RITSUMEIKAN INTERNATIONAL AFFAIRS 【Vol. 3 Energy: the development and utilization of natural gas in Northeast Asia would contribute to decreasing the dependence on Middle Eastern oil. Environment: decreasing Chinese dependence on coal for energy, which is one of the reasons for global warming and acid rain in Japan, would contribute to the improvement of the Japanese environment. Economic Community: an Economic Community in Northeast Asia like NAFTA or the EU would contribute to the economic development of Japan. Security: in Northeast Asia, which has in the past often been the battlefield of wars involving Japan, a cooperative security system is more effective than a collective security system such as NATO. Multi-tier and multilateral cooperation: in Northeast Asia, multi-tier cooperation, that is, cooperation by companies, local governments and citizens, is developing. Cooperation between Japan, China and South Korea: cooperation between Japan, the second largest economy in the world, China, the most populated country in the world, and South Korea would contribute to the economic development of Northeast Asia, Initiative for comprehensive economic partnership: the initiative for comprehensive economic partnership suggested by the Japanese government in January 2002 for Southeast Asia should be applied to Northeast Asia (The NIRA Working Group on a Grand Design for Northeast Asia, 2003: 54-55). The NIRA Working Group on a Grand Design for Northeast Asia (2003) proposed the creation of a “corridor” through “physical Integration,” that is, the integration of the transportation network, natural gas pipeline network, electric power network, and telecommunications network and a corridor of international tourism in Northeast Asia (Ibid., 151-98). This proposal presented a new aspect to the North Korea problem, because without a network in North Korea, this “corridor” or “physical Integration” would be incomplete. Ⅳ. T HE R OLE OF C HINA , S OUTH K OREA AND J APAN IN THE ECONOMIC INTEGRATION OF EAST ASIA – THE THIRD MOVEMENT IN THE NORTHEAST ASIA “BOOM” 1. The role of China, South Korea and Japan in the economic integration of East Asia The first movement in the Northeast Asia “boom,” that is, the movement from the “Japan Sea Rim” to “Northeast Asia,” played a major role 2005】 The Revival of “Northeast Asia” in Japan(NAKAGAWA) 97 in the revival of “Northeast Asia” in the 1980s. However, as it was focused mainly on inter-city and inter-regional cooperation or major projects in the area such as the Tumen River Development by the UNDP, the Japanese government gave it low priority on the political agenda. The KOIZUMI government instead gave the top priority to the second movement in the Northeast Asia “boom.” This meant that in practice that priority was given to North Korea and the security aspect as the initiative for a “Northeast Asia Common House,” despite its name, effectively concerns the Korean peninsula. third movement in the Northeast Asia “boom” arose from the movement for economic integration of East Asia. This movement stresses economic cooperation between Japan, China and South Korea and has become an essential part of the Northeast Asia “boom.” 2. Changes in the Trade and FDI Policies of the Japan, China and South Korea Governments Although Japan, China and South Korea have a dominant economic presence in East Asia, the three countries pursued a multilateral policy on trade and foreign direct investment (FDI) for a long time and had been reluctant to establish bilateral or regional policies. However, in addition to the increase in inner-regional trade and investment, three events urged the three countries to change their policy. First, the shock of the Asian Economic Crisis of 1997 was enough for governments in East Asia to change their attitudes to regional cooperation and integration. The 1997 crisis was a “capital balance crisis” (Yoshitomi 2003a, 2003b), that is, the main factor in the crisis was the hot capital inflow and outflow, which caused a currency and financial crisis (“twin crisis”). In the recovery process from the crisis, various type of cooperation were suggested and implemented (Asian Development Bank, 2004). The Japanese government proposed the creation of an Asian Monetary Fund (AMF) in June 1997, that is, one month after the tumble of the Thai baht. This initiative was withdrawn because of the opposition of the US, but in November 1997, 14 East Asian countries, the International Monetary Fund (IMF), the World Bank (WB) and the Asia Development Bank (ADB) concluded the “Manila Framework” aimed at the stabilization of Asian currency and financial markets. In March 1998, the Japanese government announced the “New Miyazawa Initiative” which offered US$30 billion for 98 RITSUMEIKAN INTERNATIONAL AFFAIRS 【Vol. 3 economic reform in Asia. In 2000, ASEAN, Japan, China and South Korea agreed the Chiang Mai Initiative (CMI), which promoted a web of bilateral swapping agreements in Asia. Although the cooperation following the 1997 crisis focused mainly on the field of currency and finance and was not limited to Northeast Asia, it changed the attitudes of East Asian governments to regional economic cooperation. The second factor forcing the three countries to change their policies was the failures and delays of the WTO Doha Round and the ensuing worldwide movement to promote FTAs. This meant that the three countries effectively lost Most Favored Nation (MFN) status outside the worldwide FTA and RTA network and had to promote the creation of FTAs to effectively recover that status. For example, before the conclusion of the Japan-Mexico FTA in 2004, exports from Japan to Mexico were subject to an average 16% customs levy, so that when Mexico concluded the North America Free Trade Agreement (NAFTA) in 1994 with the US and Canada and an FTA with the European Union (EU) in 2000, the competitiveness of Japanese companies declined sharply. The lack of an FTA was estimated by the Ministry of Economy and industry of Japan to have caused a financial loss of 400 billion yen (around US$3.6 billion) and the loss of around 30 thousand jobs (Nihon Keizai Shimbun, December 12, 2002). The third factor was China’s accession to the World Trade Organization (WTO) in 2001 – 15 years after its application for “restoration” to the General Agreement for Trade and Tariff (GATT) – and the accession in early 2002 of Taiwan – to give it its correct title the Independent Customs Area of Taiwan, Penghu, Jinmen and Mazu – which for political considerations had had to wait for China’s accession. As a result, all the major countries and regions of East Asia have become WTO members, establishing a basic multilateral framework for trade and also partly for investment9) in the region. Whereas before their accession to the WTO, China and Taiwan had been forced to give priority to multilateral frameworks, now, although China has a backlog of multilateral agreements and Taiwan is subject to political limitations, they can (9) Although the WTO is the main international organization involved in foreign trade, at the same time, it is concerned with FDI in connection with Trade Related Investment Measures (TRIMs), Trade Related Intellectual Property Rights (TRIPs), etc. EPAs, such as those between Japan and Singapore and Japan and Mexico, include articles relating to investment policy in general. 2005】 The Revival of “Northeast Asia” in Japan(NAKAGAWA) 99 pursue FTAs as their main agenda. Japan, China and South Korea have now altered their trade and FDI policy to promote free trade agreements (FTA), or economic partnership agreements (EPA) as an advanced form of the latter, and regional trade agreements (RTA) in East Asia. 3. From “East Asia” to “Northeast Asia” (Japan, China and South Korea) In the movement for East Asian economic cooperation or integration, the framework of ASEAN+3 (Japan, China and South Korea) has so far proved the most effective framework. ASEAN has played a key role in the economic integration of East Asia by mediating between its three main countries, Japan, China and South Korea, in the same way as Benelux did between Germany and France in the process of formation of the European Community (EC). The pioneer of an FTA in Asia is Singapore, which seeks to become the hub of such an arrangement, and its present prime minister, GOH Chok Tong, once made a relevant proposal to OBUCHI, the then prime minister of Japan. Inspired by Singapore, Asian countries actively pursued the creation of an FTA and RTA and in 2000 proposed to ASEAN and Japan a joint study into the creation of an FTA. ASEAN subsequently created the “ASEAN+3” framework, but since the Japanese government had at the time not shifted from its traditional multilateralism stance, it reacted negatively. The Chinese government in contrast proposed a study into the creation of an FTA between ASEAN and China and in November 2001 agreed to the conclusion of such an FTA within ten years. This had enough impact on the Japanese government to alter its trade policy and in January 2002, KOIZUMI, prime minister of Japan, set forth the “Initiative for Comprehensive Economic Cooperation between Japan and ASEAN.” In November 2002, the Ministry of Foreign Affairs of Japan announced the “Japanese Strategy for FTA,” which declared that the Japanese government would use the FTA as a political and economic bargaining card. This represented a formal change in Japanese trade and investment policy from multilateralism to a mixed bilateral-regional-multilateral policy. The Japanese government concluded an EPA with Singapore in 200210) and agreed the basic content of an EPA with Mexico in March 2004.11) 10) 11) See: <http://www.mofa.go.jp/region/asia-paci/singapore/jsepa.html>. See: JOINT PRESS STATEMENT on The Agreement between Japan and the United 100 RITSUMEIKAN INTERNATIONAL AFFAIRS 【Vol. 3 Currently, the ASEAN+3 framework, in which the three countries are simple observers, places various restrictions on their taking an active stance on FTAs. The three governments have however agreed to talks and research on cooperation between their countries to design a new framework for economic integration in East Asia. Research institutes in the three countries have begun joint research and published relevant results (Urata and Abe 2003, Abe and Urata 2003). The central role in this joint research has been played by NIRA in Japan, the Korean Institute for International Economic Policy (KIEP)12) and the Development Research Center of the State Council of the People’s Republic of China (DRC). The research, which analyzed foreign trade and foreign direct investment relations between the three countries, showed that not only do Japanese companies invest in South Korea and China, but that South Korean companies are also increasingly investing in China, above all Shandong and Liaoning Provinces, in order to lower labor costs and capture the Chinese market. It indicated that, as well as a trade agreement, the three countries therefore also required an investment agreement. In March 2002, Japan and South Korea concluded such an agreement which stipulated that, from the permission stage, neither party should discriminate against companies from the other party nation but should accord them national treatment, and that less favorable treatment should not be given to third parties. It is understandable that, in connection with this movement, “Japan, China and South Korea” should be used much more often than the seldom encountered “Northeast Asia,” which includes the Russian Far East, North Korea and Mongolia. This is because the movement concerns economic cooperation between the three major countries of Northeast Asia, which is absent from the second movement and has become the essential element of the Northeast Asia “boom.” Mexican States for the Strengthening of Economic Partnership available at <http://www. mofa.go.jp/region/latin/mexico/joint0403.html.> (12) KIEP also has a research group on North Korea. The Institute of International Relations and Area Studies, Ritsumeikan University, hosted an international joint symposium with KIEP on North Korea at Ritsumeikan University on June 11,12, 2004 2005】 The Revival of “Northeast Asia” in Japan(NAKAGAWA) 101 CONCLUSION As we have seen, the recent Northeast Asia “boom” is not a unitary phenomenon but the combination of three movements. The objects, methods and main arenas of the three movements are different, so that the boom is a kind of mosaic rather than a unified movement. Nevertheless, similarities can still be identified in all three. Generally speaking, the three movements recognize that cooperation in Northeast Asia has decisive importance for peace and prosperity in all Northeast Asian countries and regions, and especially in Japan; and that, at the same time, Northeast Asia should be not a closed community but closely linked to Southeast Asia and other regions. Summing up the three movements, we can conclude as follows. Cooperation in Northeast Asia has decisive importance for peace and prosperity in all Northeast Asian countries and regions, but especially in Japan. At the same time, Northeast Asia should be not a closed community but closely linked to Southeast Asia and other regions. Cooperation in Northeast Asia must be reviewed from both a political and an economic perspective. Politically, engagement with North Korea is at the core of existing problems, but it goes without saying that other problems need to be properly settled, for example those relating to Takeshima/Dokdo; the Senkaku/Diaoyu Islands and associated natural resources; the Chishima/Kuril Islands; compensation for the past use of forced labor and comfort women; school textbooks; and the Yasukuni Shrine. Economically, cooperation between Japan, China and South Korea is, due to their economic scale, at the core of existing issues, but this is not to say that peripheral countries and regions of Northeast Asia can be neglected or undervalued in this context; those who live in the peripheral areas of Northeast Asia have their own right to prosper, and peripheral areas often play the key role in a specific field, for example, transport, energy, the environment, agriculture, or fishery, or in specific inter-city and interregional relationships. A comprehensive approach to cooperation in Northeast Asia is thus required which brings the three movements together. 102 RITSUMEIKAN INTERNATIONAL AFFAIRS 【Vol. 3 Bibliography (English) Asian Development Bank(2004), Monetary and Financial Integration in Asia: The Way Ahead, Vol.1 & 2 (NY: Palgrave Macmillan). Fuwa, Tetsuzo, “On the North Korea Questions, January 2004,” available at <http://www. jcp.or.jp/english/jps_weekly2/FuwaonNKorea.pdf>. 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