JAPAN: President Bush yesterday held firm on his controversial "axis of evil" policy of targeting Iraq, Iran and North Korea, declaring they were three "outlaw states" that must be neutralised.
Speaking in Japan on the first leg of a whirlwind three-country tour of Asia, Mr Bush dismissed concerns among allies over expanding his war on terrorism.
He told his host, the Japanese Prime Minister, Mr Junichiro Koizumi, that "all options are on the table" in relation to shutting down the three countries' terrorist networks and programmes developing weapons of mass destruction.
"Other than that there is nothing else to talk about," Mr Bush said.
Mr Koizumi appeared to support Mr Bush, saying the fight against terrorism was not going to be a short one. "Japan shall continue to support the United States".
As for the provocative "axis of evil" label, Mr Koizumi said it merely reflected the firm resolve of Mr Bush and the US against terrorism.
Japan is now the world's second-largest economy, but is stuck in its third recession in a decade and faces a possible financial crisis that could have serious global fall-out. Mr Bush said he was confident in Mr Koizumi's leadership ability and endorsed his proposed economic reforms.
Mr Koizumi said 10 years ago Japan was perhaps a little over-confident. "Now we've lost confidence. But I would like to tackle structural reform with confidence and with hope." In private the two leaders discussed political strategy in pushing through the economic reform package, with officials saying Mr Koizumi vowed not to slacken in his efforts, which Mr Bush said were critical to a strong global economy.
US officials said the two leaders did not discuss the weakening of the Japanese yen, which has alarmed the US car industry worried it will cost them business.
But Mr Bush sparked a brief decline in the yen on currency markets when he mistakenly said Mr Koizumi had discussed "the devaluation issue". What Mr Bush meant was "deflation."
While both Mr Bush and Mr Koizumi appeared to agree on the issue of the fight against terrorism and economic policy, the Japanese leader differed over global warming policy.
About 200 peace activists, carrying banners saying, "War is not the answer", marched in Tokyo in protest against Mr Bush's "axis of evil" remarks.
Last night, a giant sumo wrestler greeted him at a reception hosted by the Japanese leader. The two then joined about 100 guests for dinner at a chic yakitori chicken-on-a-skewer restaurant, where Mr Bush quipped to reporters, "The last person out gets to pay the bill."
Meanwhile, Mr Bush visits South Korea today for the second leg of his Asian tour. He travels to China on Thursday.