Comparative Connections v.10 n.3 - U.S.-Japan Relations

The quarter began with President Bush and Prime Minister Fukuda meeting on the sidelines of the G8 summit in Hokkaido, but their bilateral agenda and Fukuda’s own premiership were eclipsed by dramatic political and economic developments in both countries. Fukuda resigned suddenly on Sept. 1 having failed to convince the public he could strengthen the economy and move important legislation through a divided legislature. Aso Taro won the Liberal Democratic Party (LDP) presidential race and began his tenure as prime minister stressing economic stimulus measures, the importance of the U.S.-Japan alliance, and Japan’s role as a global leader. Meanwhile, the U.S. struggled to contain a financial crisis that rattled world markets, prompting Japanese banks to take major stakes in ailing U.S. businesses. A successful ballistic missile defense test in September augured well for sustained bilateral defense cooperation, assuming defense budgets survive the current financial turmoil. And North Korea’s move toward reprocessing plutonium at Yongbyon threatened to erase the diplomatic progress made in the Six-Party Talks at a time when leaders in Washington and Tokyo already had plenty of diplomatic challenges and tough domestic elections to manage.