THE MODERATOR: This briefing, as you know, is on background. This is the briefer, and he will first give you a rundown of Secretary Cohen's trip to Asia -- we are leaving on Saturday -- and then take your questions for the next 15 or 20 minutes. Take it away.

SENIOR DEFENSE OFFICIAL: Thanks, Ken. Good morning. I apologize if I am a little tired. We are working hard to make this trip a success and get it ready. Let me give you just a sense about what the itinerary is, and then we will be happy to take whatever questions. We leave on Saturday for Secretary Cohen's longest trip as the secretary of defense.

We will fly directly to Malaysia, where he will have two days of meetings. He also will participate in the Pacific Dialogue, which is a charter group of key statesmen from the Asian-Pacific realm, to talk about issues of mutual concern, both in the Asian-Pacific Region and to the United States. We will then proceed to Indonesia. Secretary Cohen will have consultations and meetings both with his counterparts and with President Suharto, and I think we will be discussing all relevant issues of mutual interest between the United States and Indonesia.

Then after Indonesia, we will go to Singapore; and, again, in Singapore Secretary Cohen will meet with his counterparts, with the president, and he will also give a keynote address to the opening of a new Strategic Studies Institute, and after that he will have a discussion with, again, some key members from the Asian-Pacific Region.

From there we will proceed to Thailand for a day and a half of meetings. Again, he will have the opportunity to meet with the king, with the senior leadership in Thailand to discuss our defense relationship, and then on to Beijing, where we will have three days of discussions, or two and a half days of discussions. He will sign, while in Beijing, the recently concluded Military Maritime Agreement, and that agreement essentially sets out guidelines for how the United States and China will interact when their navies come in proximity to one another.

And then from China we will go to Japan, where we will continue to have intensive discussions about our key, bilateral security and political relationship, talk about the status of developments in Okinawa, and then from there we will take a trip to Korea and have about a day's worth of meetings. Secretary Cohen will meet with U.S. forces stationed on the peninsula. He will meet with members of the currently serving South Korean Government and also the newly elected president and some of his key team.

So, as I think you can see, this is almost a two-week trip. We are going to all the major countries, both in Southeast Asia and Northeast Asia. We will have a comprehensive security message of American engagement, continued engagement, even during this period of uncertainty, and I think with that I'd be happy to take any questions you have.

Q: Could I ask how this wrenching financial crisis that Asia is going through will affect its ability to operate its weaponry, and are you worried that these countries will now turn more to Russia for a fire sale of MiG 29's and that kind of thing?

A: First of all, I think, of course, we are trying to work closely in all avenues of our government -- the Department of Treasury, the White House, the State, and Defense -- on our relationship with Southeast Asian countries and try to convey to them our commitment to stand with them during this time of uncertainty. I think for those of you who are traveling with us to Asia, I think you will see there is a sense right now of vulnerability, of uncertainty, and they are looking to the United States for our determination to remain involved, and that's what this trip is about.

In terms of modernization programs, as you asked, several of the countries in Asia have in the last two or three years set out on very ambitious modernization plans, both in terms of procuring sophisticated aircraft, other surface combatants, and other weapons systems. I think we, wherever possible, want to work with those countries, both as a government and also to encourage private industry to work with these countries to come up with financial and other arrangements that are suitable, that meet their needs. This is going to be one of the issues that we will want to discuss with our interlocutors in Asia as we go forward.

Q: And how about the worry that they will turn more to buying cheaper weapons, such as Russian arms?

A: I think in terms of capabilities, in terms of interoperability, the United States is very comfortable with the kind of security relationships it has with these countries in the region. They have been interested in U.S. involvement from both the security side and also as an arms supplier for many years. We have a constancy, we have a reputation there, and so I think as a first order of things that we are prepared to do, we want to work with our friends and allies in the region to try to come up with terms and agreements that will allow us to maintain these important relationships.

Q: One more quick one. Is he going to be meet with Jiang and Li Peng?

A: Yes. Well, he will meet with Jiang Zemin in China, and he will meet with other senior military and civilian leaders. Li Peng, in fact, may be traveling. We are working on that schedule now, but Jiang Zemin and Secretary Cohen will have a significant meeting in the Great Hall of the People.

Q: It's pretty clear why the secretary is going to China and Japan and Korea, but Southeast Asia; what's the goal there? What are your objectives in going to these Southeast Asian nations?

A: We have numerous objectives, but I think perhaps the most important one, Bill, is the sense that the United States -- when we say the United States is an Asian power and we have Asian interests, that does not mean we just have Northeast Asian interests. We have profound, deep and abiding interests in Southeast Asia, and we want to make clear to our interlocutors in the region that we are sort of a factor in the geography now and into the future, and that's our intention as we go forward. I think in the last several years one of the things the United States Government perhaps has not done well enough is to send high-level teams and delegations to Southeast Asia to convey this message, which we believe deeply, and that's one of the reasons that Secretary Cohen is touching base at all these critical countries at this time.

Q: Can you elaborate a little bit on what those interests are, economic, military?

A: Well, I think you know how the Treasury Department is, so I won't get too much into the economic interests. From the security perspective, I will say that we have an interest in increasing our ability to train in Southeast Asia, to visit where possible, to look at joint endeavors, both in the humanitarian and military realm, to exchange view on strategic perceptions. Those are all things that we think are very important, Bill.

Q: I wanted to come back to the issue of defense trade for a minute. I think you said that one of the things you wanted to do was encourage industry with financial and other arrangements to make U.S. weapons more affordable. Do you have any specific programs, ideas, initiatives, that you are prepared to talk about?

A: No. In fact, what I want to indicate is that many of these countries have already begun preliminary discussions with U.S. corporation and financial groups. We want to encourage that. Our overall position as a government is that we believe that our standing as a steady and reliable partner and supplier of defense equipment and technology is critical for us to maintain our position as an Asian Pacific player, and we want to encourage our private companies to play a responsible role as we go forward.

Q: Specifically in regards to Korea and, in fact, other places where he is going to go, is he going to make the case again that despite the economic situation, that he wants to see U.S. weapons being purchased there as opposed to anything else; specifically if the Koreans bring up the Russian-air-defense issue again, will he make the case he wants U.S.?

A: Yeah. Secretary Cohen has made the case persuasively in public that he believes that it's important for a variety of reasons that the United States has a solid defense relationship with Korea, and he prefers if Korea looks to the United States in its capacity as a reliable supplier. However, I think, as you can imagine from my briefing, the political and economic situation that we were in, Bill, when we were in Korea six months ago is remarkably different now. So I think the kind of issues that we will be discussing are different in Korea, but I do think those are Secretary Cohen's views on this matter, though.

Q: Are you saying that because of the economic situation you think it's going to come up more in Korea this time?

A: No. What I'm suggesting that is I think there are going to be a whole other host of issues. Of course, Korea is living in a very critical time right now. We've got a civilian transformation of government. We have a new group of people coming in. There is a whole order of magnitude of questions that are perhaps more important to both countries that we will be addressing. What we're really going to be talking about is the importance which the United States attaches to its relationship with South Korea and how we're going to stand by them through this difficult period and through this important period of civilian transformation. And so I really think that some of these other issues tend to come up when you do not have as much stuff to talk about. We have a lot of stuff to talk about.

Q: Conspicuous by its absence from the itinerary is the Philippines, a treaty partner. Why is it not included on the trip? What is the status of our absence of a status with the Philippines in terms of a SOFA Agreement and what about the Philippines and its modernization effort? Are there any efforts by DoD to provide access or other type of arrangements for the Philippines?

A: Those are several questions there. First of all, this morning actually, we've been involved and engaged in very intensive deliberations with the Philippine Government on concluding a Status Of Forces Agreement or a visiting-forces agreement. We were there in the office early this morning. We will have another discussion with our Philippines counterparts tomorrow. All I can tell you is that we view that as very important. We want to continue our training-and-visiting relationship with the Government of the Philippines, and we are going to be working on that intensively as we go forward. I will myself, personally, and, in fact, I may take a day off of the trip and go to the Philippines while we're traveling there because we view this as so important. I think we have had a secretary of defense visit the Philippines during this administration, during the Clinton administration. Many of these countries have not had visits.

The only thing that has prevented us from going to every country in the Asian-Pacific Region perhaps is just time. And so there is nothing meant to be implied by its absence. We are working closely with the Philippines on a whole host of issues, and we very much would like to conclude an agreement where we can continue to train and work with the Philippines. We do not desire bases in the Philippines. I just want you to underscore that and lead with that, because that's not what we are looking for in this agreement.

Q: Well, what is the problem? Is it from the (inaudible) perspective?

A: This is just a discussion. I think we're -- I'm confident we can come up with a visiting-forces agreement that meets both of our needs.

Q: I'm from VOA. My name is Moud. Recently, North Korea criticized the President-Elect Kim Dae-jung as, in their own words, American puppet. Do you think this is the right time for the defense secretary to meet Kim Dae-jung even before he is sworn in?

A: First of all, I think that the United States will have intensive meetings with the existing government in South Korea, and that's important. It is standard procedure during an important transition such as this that senior, visiting American delegations would have courtesy and sort of initial excluding of views with a newly elected president. This is something that is welcomed by the current government in Seoul, and I think, as you know, a whole host of visiting senior officials, both from the State Department and the Treasury Department, have had ongoing discussions with potential new members of the South Korean Government. So we think that this is normal, this is prudent, and it's wise; and, in fact, I think it indicates the statesman-like approach that KDJ has already brought and will continue to bring to the office of the president in the continuation of the tradition that KYS had.

Q: Could you spell out to U.S. defense companies what you mean by them playing a responsible role?

A: I'm not going to say anything further about this. I think I indicated very clearly what our goals are. My job is not to come up and rework contracts. That's not what we're trying to indicate here. I also don't need to tell you that this is something that I don't really need to say. This is something that is well understood by all U.S. defense firms that are doing business in Asia, and they are anxious, and they are already engaged in these kinds of discussions. They are anxious to have this kind of discussion with all of the countries in Asia. So this essentially is superfluous. We are simply stating what is already taking place.

Q: So it's not like you're going to be leaning on them.

A: No, no. We don't need to lean on them. These firms want longstanding, stable relationships with these countries, and they also know that those firms that stand with countries during difficult times are remembered when times are not difficult, and that's something that is well understood among all the firms that do business in important and critical interlocutors such as Korea.

Q: How concerned are you about the impact of this crisis on the stability of the region, particularly countries like Indonesia and South Korea?

A: Well, I have to say that we're looking very carefully at a whole host of indicators. We constantly look for any signs of uncertainty on the Korean Peninsula. We have seen none. I have to say that one of the great successes of the economic transformation that has swept through Asia over the last 20 or 25 years is that the militaries are largely out of the business of controlling internal unrest. We do not -- we look very closely at any indications of internal unrest in Asia, and, of course, we're concerned by security involvement in those situations. One of the reasons that Secretary Cohen is going out is to have these important deliberations and try to lay out why we think that handling difficult economic transformations, labor problems, in a responsible way is the sign of a maturing society. Let me take some other questions if I can.

Q: After -- with these new guidelines, where are you now with the talks with Japan? Are you satisfied with the procedures, and Mr. Cohen's visit, is he going to emphasize at (inaudible) particular field to stimulate (inaudible)?

A: I think Secretary Cohen, when he is in Japan, we will have a significant sort of next tranche on the defense guidelines. I think you will see us initialing an agreement between the U.S. and the Japanese Government in terms of how to make the defense guidelines a reality, and we will continue our discussions on regional situations and also on Okinawa.

Q: Yes. About Okinawa, what impact do you see with this recent development in that region of...?

A: In Nago? Yes, I don't want to ask your question for you. First of all, you know, obviously we view this as an internal matter for the Government of Japan. The United States is completely committed to the execution and implementation of the SAKO Agreement. That is the agreement that covers the reduction of our facilities on Okinawa. We think that's an important step, and we want to continue the progress, continue the forward motion, and Secretary Cohen will make that point clear, both today, when he meets the deputy chief cabinet secretary in his office in a few minutes, and also in our subsequent deliberations in Japan in two weeks' time.

Q: China -- aside from the Maritime Agreement, what do you hope to accomplish? What's on the agenda?

A: Well, let's see. I think one is we want to continue to have this sort of strategic dialogue where we talk about all issues of mutual concern: stability in the Persian Gulf, developments on the Korean Peninsula, developments in Southeast Asia. So, just the very exchange of views, we view as very important; and, Bill, I can tell you now, having been in many of these dialogues over the last two years, that the nature of them is changing and rather dramatically. There is much more honest and actual exchange of views, and it's a very heartening thing to see, and I think it's an impressive development, and we'd like to see that continue.

I think we are going to talk a little bit about, obviously, developments in the Persian Gulf, with recent moves, both in Iran and Iraq, and I won't go further into that, but I think both China and the United States share interests here. And I also think it will be important for the United States to press China on some of its commitments it made, both in the run up to the summit and in the summit, in terms of some of the issues associated with the proliferation. I don't want to -- Bill, we'll have a lot of time to talk about that on the trip. I don't want to get more into it here. Yeah?

Q: Nago City heliport. The United States considered some other places to move the heliport. I mean, now that a little more than 50 percent of the citizens of Nago City voted against the heliport, are you discussing other options with the Government of Japan?

A: No.

Q: On Indonesia, we're getting preliminary, fragmentary reports that President Suharto is ill. Can you shed any light on that?

A: You have more up-to-date communications. I just heard about skiing accidents, I think, earlier today, so I don't know about these reports. That's not funny. I'm sorry. That's really not appropriate. We are working on it, and I don't know about this, and I just can't respond. Yeah.

Q: I'm from the Voice of America from the Indonesian Service.

A: Oh, yes, hi.

Q: Given the current turmoil in Indonesia, what is the relevant point you want to discuss with Indonesia at this stage?

A: I think the key point, the most important point, is to assure Indonesia that we're a partner, that we are with Indonesia, both economically, politically, and strategically, and that we have our differences and our difficulties, but the United States is committed to having a solid, stable relationship with the Government of Indonesia. That, more than anything else, plus sort of the associated belief that we share common strategic interests in the region is something that we'll want to underscore.

Q: Do you have the names of the people you are going to see in Indonesia, his counterpart?

A: Yes. He will see his military counterpart, he will see, I believe, the foreign minister, and he will see President Suharto as well, plus some other associated individuals in Indonesia. Okay? Thank you.

Q: (Inaudible), four-party talks (inaudible) official in Turkey. Do you think there is any change (inaudible) North Korea? A related question is you are proposing a joint humanitarian exercise with the Chinese. Is it important to Korea to continue the plan?

A: The first issue, let me address very quickly. We see no sign of any change of the status of forces of warning indicators in North Korea. The situation is normal. On the second issue that you raised, we are beginning a very preliminary process of dialogue with China on ways to exchange information on how our militaries have and can respond to humanitarian crises. So that kind of application is premature. At this juncture we're just exchanging information. There has been no formal commitment from China about subsequent cooperation. Okay? Thank you very much.

Q: President Clinton and Chinese President Jiang Zemin have decided to establish a constructive, strategic-partnership relation between the two countries. And I'd like to know if Secretary Cohen will try to discuss with Chinese leaders to draw a more detailed plan or timetable for the (inaudible) relationship.

A: I think of all the arenas of dialogue between the United States and China the one that has the clearest road map of what we would like to accomplish over the next year or so is in the military realm. And so Secretary Cohen, in addition to having the strategic discussion, talking about some areas of mutual concern, signing the Military Maritime Agreement, will also lay out a game plan for exchanges and visits between the United States and China for 1998 and beyond. So, in fact, we very much want to take advantage of the opportunity to deepen, to broaden, and to further the dialogue, and we will take very clearly the direction from our two presidents about how important the military dimension of our relationship is. Thank you all very much.