SECRETARY POWELL: Well, thank you, Mr. Ambassador, and good morning ladies and gentlemen. It�s a special treat to be introduced by Ambassador Baker, one of my old and dear friends and colleagues from past assignments. We are so honored that he and his charming wife, Nancy, will be representing us here in this country that means so much to the United States, and where our relationship is so important. We�ve sent our very best, and Ambassador and Mrs. Baker are off to a great start.

This morning I met with the Prime Minister. We had an excellent meeting, building on the very successful June 30 summit meeting that he had with President Bush at Camp David and the excellent meetings they had in Genoa just a few days ago. My government fully supports Prime Minister Koizumi�s economic reform agenda, and we stand ready to assist in any way we can. We believe that our new partnership for economic growth will be helpful in this regard. The Prime Minister and I discussed our countries� responsibilities as the world�s two largest economies to do what we can to stimulate economic prosperity. We both want to see a strong healthy Japanese economy, because we believe that a vibrant Japanese economy is a key to America�s prosperity and to Asia�s growth.

We reaffirmed the importance of the U.S.-Japan security relationship to both of our peoples, to the region and to the world. We agreed that the U.S. presence in Japan is essential to the defense of Japan and to the maintenance of regional peace and prosperity.

We touched upon the recent incident in Okinawa. I reiterated to the Prime Minister that my government is committed to the highest standards of behavior on the part of our service members. Overall, I believe that our forces are setting and meeting those high standards, but when incidents do occur we must respond promptly as we did in this particular incident. I raised with the Prime Minister our views on the question of assurances regarding the treatment of U.S. personnel transfer to Japanese custody prior to indictment.

We appreciate Okinawa�s contribution to our alliance and to our presence here in Japan. We understand the Okinawan peoples' desire for a reduced footprint. We want to see what we can do to reduce that footprint as we move ahead. Ambassador Baker will be visiting Okinawa in the next few days and will be talking to the authorities in Okinawa and to our Commanders there about our presence, and about additional steps that might be taken to reduce the potential for incidents. My government wants to continue to work with the government of Japan and the authorities in Okinawa to improve implementation of the Status of Forces Agreement.

The Prime Minister and I also discussed the Kyoto Protocol. I told the Prime Minister that President Bush takes global climate change very, very seriously and President Bush, of course, made that same point to the Prime Minister when they were together in Genoa. We want to work with Japan and others toward a global framework that deals effectively with the problem of global warming. And so my visit, although brief, I think has been very productive so far.

I have one more meeting before leaving for Hanoi. I very much wanted to make sure that I visited Japan before I went anywhere else in Asia, as a symbol of the importance of the relationship of the U.S.-Japanese security arrangement as well as our economic ties, but the shared history that we have over the last 50-odd years of friends committed to peace and security, committed to a strong relationship between our two peoples.

Thank you very much, and I would be delighted now to take your questions.

SPOKESMAN BOUCHER: Let�s start with Mr. Gedda, please.

QUESTION: Mr. Secretary, could you comment specifically on the outcome of the climate change negotiations in Bonn, please?

SECRETARY POWELL: Well, as you know, they were able to reach consensus in Bonn at the COP-6 Meeting. The United States, of course, continues to view the Kyoto Protocol as a protocol that we cannot accede to, and would not be able to get ratified even if we did accede to it.

The President is committed to working with all of the nations of the world who are involved in this process to find ways that we can join consensus at some point in the future, but the Kyoto Protocol and even what came out of Bonn still is not acceptable to the United States. We have put forward some ideas with respect to technology initiatives we can pursue and, as the President has indicated, we are continuing to study the problem.

We have reviews underway, we have our Cabinet Members deeply involved in this and, hopefully, we will have new ideas that can be presented at COP-7 or other future meetings. We take the problem very seriously. We know that global warming is a challenge. The United States is not shrinking away from that challenge. The United States has a good record with respect with environmental issues, has a good record with respect to cleaning up pollution in our country and working with other countries to do likewise, and it is a record that we�re going to build upon in the future. We just did not find that the Kyoto Protocol was the way for us to push forward and try to achieve that common objective. But we do understand that the other nations involved in the process believe that it was an acceptable way to move forward and we respect that judgment. It does not yet, of course, reflect our judgment.

SPOKESMAN BOUCHER: Let�s go to Robin Wright.

QUESTION: Mr. Secretary, you�ve arrived in the region at a time of two breaking regional crises: the transition of power in Indonesia and the plummeting of Tokyo�s stock market by -- to a sixteen-year low. Would you -- first of all, are you concerned about stability in Indonesia and the potential for spillover in the region? And, secondly, are you concerned that Japan�s stock market problems and other economic woes will either hurt or defer efforts at economic reform?

SECRETARY POWELL: With respect to Indonesia, from what I�ve see so far, we do not have a crisis, but we do have the democratic process being followed and parliamentary procedures being followed. There has been a peaceful transfer of power. I congratulate the Indonesian people for the manner in which that has been handled so far. And I hope that we will see responsible action on the part of all parties to continue this transition in a peaceful way.

With respect to the Japanese stock market, I don�t want to comment specifically on the stock market, but let me just say that we believe that there is a need for economic reform in Japan. The actions that the Prime Minister has suggested and the programs that he plans to put in place, I think, deal with these issues in a very fundamental and structural way, whether it includes putting in place a proper social safety net or doing something about the challenge of non- performing loans. But it is a broad attack that he has planned to deal with the structural problems and, if he is successful in this broad attack, other things will follow in due course, such as what we would like to see happen in the stock market and other features of the Japanese economic situation that needs improvement. So the President has indicated his support for the efforts that the Prime Minister has taken and, of course, all parts of the United States government will be working together with their Japanese counterparts to make those efforts successful.

SPOKESMAN BOUCHER: Let�s go to the gentleman in the center here.

QUESTION: Gregory Biels, Newsweek. Mr. Secretary, with regard to North Korea. Is the U.S. ready to reaffirm the October 12 communiqu� between the U.S. and that country? And as a follow-up, when do you believe you are going to be meeting with Secretary Pike?

SECRETARY POWELL: I don�t know when I will be meeting with the Secretary. We are having conversations with the North Koreans in New York. We have had a couple of such conversations and I look forward to engaging at higher levels in due course. We have to be patient. This is a -- it tends to be a more deliberate process than people might expect, and the North Koreans are still examining what we have said.

None of the previous actions of previous administrations have been pushed aside, to include the communiqu� you make reference to, and so we will wait to get an official response from the North Koreans to our overtures and I hope that when we get that response, it will give us a basis to move forward. We will move forward in close consultations with the South Koreans and of course, with the Japanese, who have interest in this dialogue.

SPOKESMAN BOUCHER: Charlie Wolfson, or�

QUESTION: Mr. Secretary, from CBS News. I would like to ask you about the trial of Gao Zhan today in Beijing which I know you are very well aware of. It seems as if the Chinese are moving these cases through the system and I wonder if that in any way tempers your concern about human rights in China.

I also notice that, as a follow-up, last night on the press plane, you talked about the need for China to understand the economic part of the international community and the human rights part of the international community, and I wonder if you would share some of those thoughts with us as well.

SECRETARY POWELL: I am pleased that they are starting to move these cases promptly through their system, but it is not individual cases that should be our sole concern. It is just the whole approach to the subject of human rights.

As we talk to the Chinese about accession to the World Trade Organization and how to improve our trading relations, we also have to be candid with respect to human rights. We believe, fundamentally, that there are human rights that are given to all people by God -- I don�t shrink from that statement -- and I believe in the universality of human rights. I think it is important for us to make that point to the Chinese, that with this universality there are expectations from the international community that people would be allowed to live in peace and freedom if your nation wants to be part of an overall international order committed to peace and freedom, and democracy and the rights of individuals.

We have seen enormous improvements in China over the last 25 or 30 years, and I think that they still have a way to go before they would meet the standards that we consider appropriate. Not American standards being imposed upon China, but standards that I think the civilized world and the world that believes in peace and freedom and economic freedom especially, the standards that those nations believe are appropriate for all nations who want to part of the international community. So, our commitment to human rights is solid and firm and it will not be put at the expense of economic interests or security interests; it is part of a broad agenda that we have with China. So I look forward to discussing human rights issues, economic issues, security issues and other bilateral issues with my Chinese interlocutors later this week and next week.

SPOKESMAN BOUCHER: Did you have one or not? Go ahead.

QUESTION: Mr. Secretary, you have spoken about reducing the footprint in Okinawa. Can you explain what you mean? Are you talking about the size of the U.S. presence or the way that it makes itself felt?

SECRETARY POWELL: All of the above. We have had conversations about whether it is possible to ship some of the exercise burden to other places; the Japanese have suggested this. Our actual presence in Okinawa: I wouldn�t rule out anything, but at the same time, let me make it clear that we must maintain a military presence in Japan, and in Okinawa, to give meaning, to give life to the security relationship. It is a visible manifestation of our security relationship and our responsibilities in Asia.

We do this recognizing that our military presence can sometimes be a burden. We appreciate the hospitality that our Japanese hosts extend to our wonderful young men and women, and we want our young men and women in uniform to be good guests. From time to time incidents occur. They happen in our own country outside of our bases, they happen in other countries where we have our troops located and it is important to us to keep these incidents in perspective, to deal with them, to respond to them promptly, to recognize that incidents such as this put this relationship at risk.

At the same time, we should work hard to see if we can minimize the impact of our presence on the communities in which we are located. We have to be there if we are going to have a visible manifestation of the security relationship. We can�t simply go away and be somewhere in the United States and also say that we are ready to respond to our security interests in the Pacific.

So, Ambassador Baker will be going to Okinawa and I am sure he will be spending a great deal of time as well, here in Tokyo, with our Japanese colleagues to see what we can do to reduce the potential for such incidents and to make our presence as small a burden as possible on the Japanese people and on the communities in which our troops are located. But keep in mind, put it all in perspective, our youngsters do a good job of representing America to the Japanese, do a good job of preparing themselves for the kinds of missions they might be called upon to perform, and do a good job in terms of behaving themselves and keeping these incidents down to a low level. Every incident, however, is to be regretted and we should do everything possible to avoid future incidents.

SPOKESMAN BOUCHER: Last question, to Andrea Koppel.

QUESTION: Secretary Powell, are you saying that Ambassador Baker�s trip will not be dealing with, or will be dealing with, potential changes to the Status of Forces Agreement?

SECRETARY POWELL: No, we see no need to change the Status of Forces Agreement, nor did I think I made any reference to Ambassador Baker�s trip with respect to changing the Status of Forces Agreement. The Status of Forces Agreement seems to be serving its intended purpose. The 1995 agreement is on top of that.

In the latest incident, it took us just 4 days to resolve the problem. Within the context of the Status Forces agreement and the 1995 agreement on top of that, there are operational issues we should take a look at. Issues related to the assurances we would like to have before turning over one of our young men to Japanese authorities or young women to Japanese authorities. Those are the operational issues we should work through.

But at this point, I see no reason or basis to reopen the Status of Forces Agreement to new negotiations. It seems to be serving the intended purpose of the Status of Forces Agreement. It worked in this instance, it is not that it didn�t work; it did work. The young man was turned over after assurances were received and after discussions took place between authorities here and between authorities in Washington and authorities in Tokyo, so it served its purpose. I see no reason to open it up at this time.

SPOKESMAN BOUCHER: Thank you for coming.