Structural adjustment, dialogue, and U.S.-Japan economic relations - W. Allen Wallis' address before the Executive Committee Meeting of the U.S.-Japan Business Council in Kona, Hawaii, on Feb. 16, 1987

US Department of State Bulletin, May, 1987

Exploiting Change

In closing, let me reiterate a point I havebeen making to European audiences when I discuss structural adjustment issues with them. That point is that we must recognize that change is not only inevitable but also desirable and that our futures lie in exploiting change, not hampering it.

Japan's changing, of course, is aremarkable, almost unprecedented development. There are few countries brave enough to undertake the kind of far-reaching review of what they must do to fulfill better their international responsibilities and promote their own welfare. I would stress, however, the need for timely action. No one would contend that rapid structural economic change is easy or painless. Demands for change can overwhelm the ability of a democratic political process to deal with the costs. The Reagan Administration has kept the negative forces of protectionism at bay. Recent currency adjustments will help make our products more competitive in world markets, and our trade deficits should start to shrink. But the fundamental imbalance between production and spending, both in the United States and in Japan, needs more work. Our dialogue on structural adjustment is a key part of that work.