By the end of the month, Bosnia was back in the news. The Serbs tightened their blockade around Sarajevo, and their snipers began firing on innocent children again. On May 25, NATO conducted air strikes on the Serb stronghold of Pale, and the Serbs, in retaliation, seized UN peacekeepers and chained them to ammunition dumps in Pale as hostages against further strikes; they also killed two UN soldiers from France in the seizure of a UN outpost.
Our airpower had been used extensively in Bosnia to conduct the longest-lasting humanitarian mission in history; to enforce the no-fly zone, which kept the Serbs from bombing Bosnian Muslims; and to maintain a fire-free zone around Sarajevo and other populated areas. Along with the UN peacekeepers and the embargo, our pilots had made a real difference: casualties had dropped from 130,000 in 1992 to under 3,000 in 1994. Nonetheless, the war was still raging, and more would have to be done to bring it to an end.
The other main foreign policy developments in June occurred around the G-7 summit hosted by Jean Chrétien in Halifax, Nova Scotia. Jacques Chirac, who had just been elected president of France, stopped by to see me on his way to Canada. Chirac had warm feelings for America. As a young man, he had spent time in our country, including a brief period working in a Howard Johnson’s restaurant in Boston. He had an insatiable curiosity about a wide variety of issues. I liked him a lot, and liked the fact that his wife was also in politics, with a career of her own.
Despite the good chemistry between us, our relationship had been somewhat strained by his decision to resume testing France’s nuclear weapons while I was trying to get worldwide support for a comprehensive nuclear test-ban treaty, a goal of every American President since Eisenhower. After Chirac assured me that when the tests were completed he would support the treaty, we moved on to Bosnia, where he was inclined to be tougher on the Serbs than Mitterrand had been. He and John Major were supporting the creation of a rapid reaction force to respond to attacks on UN peacekeepers, and I pledged U.S. military support to help them and the other UN forces get into and out of Bosnia if they and the regular peacekeepers had to be withdrawn. But I also told Chirac that if the force didn’t work and the UN troops were forced out of Bosnia, we would have to lift the arms embargo. At the G-7, I had three objectives: to secure greater cooperation among the allies on terrorism, organized crime, and narco-trafficking; to identify major financial crises quickly and handle them better, with more timely and accurate information and with investments in developing nations to reduce poverty and promote environmentally responsible growth; and to resolve a serious trade dispute with Japan. The first two were easily achieved; the third was a real problem. In two and a half years, we had made progress with Japan, completing fifteen separate trade agreements. However, in the two years since Japan had pledged to open its markets to U.S. automobiles and auto parts, the sector that accounted for more than half our total bilateral trade deficit, we had made almost no headway at all. Eighty percent of American dealerships sold Japanese cars; only 7 percent of Japanese dealerships sold cars from any other country, and rigid government regulation kept our parts out of Japan’s repair market. Mickey Kantor had reached the limits of his patience and had recommended putting a 100 percent tariff on Japanese luxury cars. In a meeting with Prime Minister Murayama, I told him that because of our security relationship and the sluggish Japanese economy, the United States would continue to negotiate with Japan, but we had to have action soon. By the end of the month we had it. Japan agreed that two hundred dealerships would offer U.S. cars immediately, and a thousand would do so within five years; that the regulations keeping our parts out would be changed; and that Japanese automakers would increase their production in the United States and use more American-made parts. During the entire month of June, I was also embroiled in the unfolding battle with the Republicans over the budget. On the first day of the month, I went to a farm in Billings, Montana, to highlight the differences between my approach to agriculture and that of the Republicans in Congress. The agricultural aid program had to be reauthorized in 1995, and therefore was part of the budget debate. I told the farm families that while I favored a modest reduction in overall agricultural spending, the Republican plan cut assistance too sharply and did too little for family farmers. For several years, Republicans had done better than Democrats in rural America because they were more culturally conservative, but when push came to shove, the Republicans cared more about large agribusiness than family farmers.