[Public Papers of the Presidents of the United States: George H. W. Bush (1992-1993, Book II)]
[August 11, 1992]
[Pages 1331-1337]
[From the U.S. Government Publishing Office www.gpo.gov]



The President's News Conference With Prime Minister Yitzhak Rabin of 
Israel in Kennebunkport
August 11, 1992

    The President. Well, I've just spent the best part of the past 24 
hours with Prime Minister Rabin, and it has been a true pleasure for 
Barbara and me to spend this time with the Prime Minister and Mrs. 
Rabin. We've known them for many years. As a matter of fact, we're 
charter members of the former ambassadors club, and we could not be 
happier than to have them visit us here at Kennebunkport, this very 
special

[[Page 1332]]

place for me and for my family.
    Before I say some more about my hours of conversation with the Prime 
Minister, I want to take this opportunity to say a few things about the 
relationship between the United States and Israel. This is a 
relationship that goes back more than four decades to Israel's birth in 
1948. This is a relationship that's been tested in times of peace and 
war, one capable not only of weathering differences but of accomplishing 
great things. This is a relationship based on a shared commitment to 
democracy and to common values, as well as the solid commitment to 
Israel's security, including its qualitative military edge. This is a 
special relationship. It is one that is built to endure.
    Now, we reviewed a great many issues, often in considerable depth, 
and I want to begin with the peace process. I will let the Prime 
Minister, obviously, speak for himself, but I do not think he would 
object to my saying that we agree 100 percent that our goal goes beyond 
that of ending the state of war. What we seek is real peace, codified by 
treaties, characterized by reconciliation and openness, including trade 
and tourism. It must be a comprehensive peace on all fronts, grounded in 
U.N. Security Council Resolutions 242 and 338, born of direct 
negotiations.
    Two weeks from now in Washington, representatives of Israel along 
with those of the Palestinians, Jordan, Syria, and Lebanon will resume 
direct negotiations launched in Madrid last October. I am optimistic 
that these talks are about to enter a new, more productive phase.
    Prime Minister Rabin has persuaded me that Israel's new government 
is committed to making these talks succeed, and I call upon the Arab 
parties to respond in kind. The time has come to make peace, not simply 
to talk of it.
    We also spent time discussing the region at large. It is tragic that 
so much of the history of the Middle East is measured by wars. It's a 
crime to waste so much of the area's resources, human and material 
alike, in preparing for wars or waging them. It is time these resources 
were committed to meeting the needs of people. We thus committed 
ourselves to work to stem the proliferation of conventional arms as well 
as weapons of mass destruction. We agreed to work together on behalf of 
the multilateral process begun in Moscow earlier this year to promote 
progress between Israel and her neighbors on issues ranging from water, 
the environment, economic development, to refugees and security.
    The Prime Minister and I focused as well on the international 
situation, and we agreed that the world must seize the historic 
opportunity created by reform in Russia and the other newly independent 
States. We agreed, too, that the world must act to bring to an end this 
humanitarian nightmare that now exists in what was Yugoslavia.
    The Prime Minister and I also devoted a good deal of time to 
bilateral issues. Let me say that it's a source of considerable 
satisfaction to me to look back on all that has been accomplished just 
over the last few years. With the assistance of the United States, 
Israel has been able to take major strides in breaking out of its 
diplomatic isolation. Israel no longer is stigmatized so unfairly by a 
U.N. resolution equating Zionism with racism.
    Literally hundreds of thousands of Jews from Ethiopia and from the 
former Soviet Union now make their homes in Israel; and this, more than 
anything else, is what the Jewish state is all about. In this regard, I 
am extremely pleased to announce that we were able to reach agreement on 
the basic principles to govern the granting of up to $10 billion in loan 
guarantees. I've long been committed to supporting Israel in the 
historic task of absorbing immigrants, and I'm delighted that the Prime 
Minister and I have agreed to an approach which will assist these new 
Israelis without frustrating the search for peace. We can thus pursue 
these two humanitarian goals at one and the same time.
    I look forward to sitting down with the congressional leadership and 
recommending to them that Congress take swift action on authorizing up 
to $10 billion in loan guarantees to facilitate Israeli absorption of 
immigrants. Together with the economic reforms the new Israeli 
government is committed to, I am confident that these loan guarantees 
can make a considerable contri-

[[Page 1333]]

bution, a critical contribution, to Israel's future. I would hope that 
other governments with the means to do so would also consider extending 
loan guarantees for this purpose.
    I'd like to say one more thing about my time with the Prime 
Minister. The meetings were important for what we discussed, but they 
were also significant for the tone of the discussions. Our time together 
can best be described as a consultation between close friends and 
strategic partners, one characterized by trust, warmth, and a commitment 
to meeting these common challenges. This is strategic cooperation at its 
very best.
    So again, let me just end these remarks by saying how much we've 
enjoyed having the Rabins visit us at our home here and now, speaking 
for all Americans, how much we hope the Prime Minister and his wife will 
be regular visitors to the United States of America.
    Thank you, sir.
    The Prime Minister.  Thank you very much.
    Mr. President, let me first thank you wholeheartedly for the kind 
and warm hospitality bestowed by Mrs. Bush and yourself on my wife and 
me, as well as our colleagues. It has been a real pleasure to spend with 
you, with Secretary Baker, General Scowcroft, and your other colleagues, 
this highly pleasant day. We really appreciate it.
    I would also like to thank you for your kind words this morning. Our 
exchange of views here included a great number of subjects, both of a 
general character, dealing with international issues and concerns, 
specific bilateral matters. It was done in a constructive and friendly 
atmosphere for which we are grateful.
    I would like to allude, first, to the human tragedy in Bosnia. We, 
the Jewish people, having suffered persecution throughout history, can 
never remain indifferent to such tragedies. The killing must stop. I 
know that the United States is now making great efforts towards a 
solution there. We, on our part, are trying to contribute as much as we 
can in humanitarian aid. Let us hope that those tortured people will 
find peace.
    Mr. President, as you kindly indicated, the basis of the 
relationship between Israel and the United States is the unshakable 
foundation of shared values and hopes. Our joint commitment to democracy 
and to freedom stands as a permanent, solid rock on which a very special 
relationship is built.
    This relationship, which has seen occasional, temporary 
differences--differences, views--include our strategic cooperation among 
other important links developed over many years. We have both reiterated 
our mutual desire to continue those links, facing the challenges that 
lie ahead.
    Mr. President, we live through troubled times, reflected also in our 
region. We have supported since the beginning of the Gulf crisis the 
U.S. and your policy against Saddam Hussein's brutal aggression. The 
strong approach taken by the United States during the war greatly 
contributed to the regional sense of security and made a positive 
contribution to Israel's security as well.
    We continue to support a determined policy towards still-existing 
dangers. We are committed together, Mr. President, to the pursuit of 
peace in our region. The new government in Israel which I'm privileged 
to head will do its utmost to promote the peacemaking efforts begun and 
cosponsored by the United States under the Madrid framework. This 
framework has been structured to a great extent on the basis of the Camp 
David accords and took into considerations many of Israel's desires.
    On our part, we shall do our best to inject new momentum to the 
negotiations, both in the bilateral and the multilateral spheres. We 
shall do so as much as we can on a continued basis while, of course, 
scrupulously preserving Israel's security against all threats.
    We will be glad to attend the coming round of the bilateral 
negotiations in Washington later this month and through much of the next 
months. We look forward to fruitful negotiations with the Jordanian-
Palestinian delegation, as well as with the Syrian and the Lebanese 
delegation. It is our hope that our counterparts will share our good 
will and openness. The chances for a better, peaceful future are there. 
Let us all take the advantage of them. We also look forward to the 
multilateral negotiation starting anew in September.

[[Page 1334]]

    Mr. President, I would like on behalf of my country to express to 
the United States and to you, personally, our gratitude for your support 
to the opening of the gates of the former Soviet Union and Ethiopia for 
the immigration of our brethren who so wished to their homeland, Israel. 
This role will not be forgotten.
    In the same spirit, the U.S. has supported the idea of absorption of 
these immigrants, enabling them to achieve appropriate housing and 
employment and rebuild their lives. Your decision now to submit to the 
Congress a proposed legislation concerning the loan guarantees is a 
significant step in this direction.
    We, on our part, are determined to improve our national economy 
towards more efficient and privatized system for this and other goals 
that must be achieved. We have also announced in the basic guidelines of 
our government a change in the national priorities towards this 
direction.
    We shall also carry as much as possible of the burden, of the 
financial burden of the guarantees so as to lessen any cost to the 
American taxpayer. But your readiness to extend them following our 
discussions means a lot to me and to Israel. And again, thank you very 
much.
    The President.  Thank you, sir.
    Now we'll be glad to take some questions.

Middle East Peace Talks

    Q. Mr. President, can you now envision a time of real peace between 
Israel and its Arab neighbors? And to what extent has a new government 
in Israel contributed to this process?
    The President.  Well, I salute the Prime Minister. He has been very 
forthright, as he said here in his statement, about wanting to continue 
the peace negotiations, and absolutely, I think all of us should look 
optimistically about the chances for peace. There are always obstacles. 
But the fact that they are coming together across a table, the people 
that have had ancient enmity, is a very good sign. I think the approach 
of this new government which is saying, ``Let's meet; let's talk,'' is 
exactly what it's going to take to achieve the kind of peace that 
everybody wants.
    As you'll notice in my statement, I called upon Arab governments to 
be forthcoming in the forthcoming talks. So yes, we are optimistic. We 
all know there are problems, but we must achieve it.
    Q. When can we expect results, sir?
    The President. Well, I think we just have to wait now and see how 
the talks go.
    Would you like to comment on that question, sir?
    The Prime Minister.  Well, we are coming with open-minded--we 
believe that the negotiations, face-to-face, on the three delegations, 
the Jordanian-Palestinian, the Syrian, and the Lebanese, can be 
conducted, the purpose to achieve, when it comes to the Jordanian-
Palestinian delegation, the interim arrangement for self-rule to the 
Palestinians.
    The way it is described in principles in the letter of invitation to 
the Madrid conference, we are open-minded, we are interested to achieve. 
But in the Middle East, there is a saying that for war, one side is 
enough; for peace, you need two. We hope we'll have the second partner.
    The President.  We're going to try to alternate between U.S. and 
Israeli journalists, if that's all right.

Israel-U.S. Relations

    Q. Mr. President, you spoke of a strategic partnership between the 
two countries. I was wondering if you could elaborate a bit and tell us 
if you believe Israel has strategic importance to the United States in 
the aftermath of the cold war.
    The President.  I do, and I think that when we talk about militarily 
qualitative edge, that is a longstanding position of the United States. 
We will continue to uphold it. Israel is a democracy surrounded by 
countries that aren't, and they have been loyal and staunch friends.
    My responsibilities as for President
of the United States and the security of
this country relate to the fact that
nobody knows where the next crisis could
come. You rely on friends in a crisis.
Israel is not only important as a friend,
but they have demonstrated strategic
reliability. So I don't care to elaborate
any more, but I just would reemphasize
the fact that it is not only historic
friendship based on democracy, but it is

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in the interest of the United States. It is in our security interest to 
retain the kind of relationship we have militarily and every other way 
with Israel.

Palestinians

    Q. To follow it up, after your discussions with Mr. Rabin, I assume 
you exchanged views on perhaps the shape of Palestinian self-rule. Would 
you say that you basically see eye-to-eye on how that should--the terms?
    The President. Well, I'd say he made a very clear presentation about 
this. And I don't know, there might be some differences, but I think 
basically we recognize that as he approaches the peace table, that is 
the way to decide what happens. We're not going to prejudge or 
precondition from the United States standpoint.

Loan Guarantees for Israel

    Q. It's been said that you had reached agreement on the basic 
principles for granting the loan guarantees. Does that mean that the 
agreement is less than final?
    The President. No, I'm going to go forward. I'm going to keep it a 
little bit--I'm not going to go into a lot of detail right now. I think 
I owe it out of courtesy to the congressional leadership to go forward 
with recommended legislation. I will be doing that. I think we're set 
for this afternoon to do just that, and I think that will give us a 
chance to--so it's more than just a general agreement, but there's 
enough specifics here for me to recommend enthusiastically to the United 
States Congress and to the American people that this is in not only the 
interest of Israel, but it is in our interest.
    Q. Well, what are those basic principles, sir, and how do they 
relate to this touchy question of settlements?
    The President. Well, I've just touched on one of them, that we have 
a strategic ally. There's a broad humanitarian principle, and that is we 
would like to be helpful in settling those that have come home, those 
that have left Ethiopia, those that have left the former Soviet Union, 
and that's kind of the humanitarian aspect of it.
    There's all kinds of implications. A strong Israel, an Israel that 
is better able to cope through the borrowings it's making, is in our 
interest.
    Q. Well, what about this basic question of settlements, sir, that's 
been so touchy between the two countries?
    The President. I think that I would let Prime Minister Rabin's words 
speak, not just the words here but the words that he spoke during his 
campaign, and then the actions that he has taken. We see a very 
different approach to settlements, and we salute the Prime Minister. It 
was not an easy position, and I'm sure there are divisions in Israel on 
this position. But he took a lot of courage, and he has begun to 
implement that policy certainly to the satisfaction of the United 
States.
    I would prefer you call on your traveling journalists so I don't 
overlook anybody, and then, well, if they ask me the question, I'll be 
glad to try to----

Israeli POW-MIA's

    Q. Mr. President and Mr. Prime Minister, did you deal with the 
problem of the MIA's and POW's, the Israeli ones?
    The President. We discussed it, and the Prime Minister just 
forcefully said to me, ``Look, please do everything you can to account 
for whoever else might be held prisoner.'' And so he made the case, and 
I pledged to him to do whatever it is we can. We do not have great 
influence on solving that problem. We didn't have too much on solving 
the one where Americans were held. But as long as one prisoner is held, 
everybody should be outraged and try to do his level-best.

Jerusalem

    Q. Mr. President, may I ask you please as to whether you are 
prepared to recognize a unified Jerusalem as the capital of the 
sovereign State of Israel and that you will move our Embassy to 
Jerusalem in your second term?
    The President. Let me just say that our policy on Jerusalem remains 
unchanged. It must never be divided again, and its final status must be 
resolved through negotiation. And nothing in approach here changes that 
policy. That's the U.S. policy, and I will just stay with that and not 
go into anymore detail.

[[Page 1336]]

Politics and Foreign Policy

    Q. Mr. President, do you feel that the positive tone of these talks 
and Prime Minister Rabin's warm words here will help in helping you win 
over American Jewish voters who were alienated by your remarks on 
September 12th and by the tensions in your relationship with former 
Prime Minister Shamir?
    The President. Well, let me try to be clear on this one, just as I 
was the other day on Bosnia. We're not talking here about domestic 
United States politics, nor are we talking about domestic Israeli 
politics. We're talking about principle. We're talking about doing what 
is right. We're saluting the policy that we see as very forthcoming and 
very proper on the part of the Prime Minister and his new government.
    So I'd like to try to leave it out of the American election process, 
and I would readily recognize that isn't easy. On anything you do, 
whether it's a foreign policy matter or a domestic matter, every 
question tries to hook it into domestic politics. But I'm going to 
finesse that because I think what we're talking about here is too 
important.

New York Post Allegations

    Q. Mr. Bush, uncomfortable as the subject is, I would think it's one 
in which you feel a necessity to respond because you've said that family 
values, character, are likely to be important in the Presidential 
campaign. There is an extensive series of reports in today's New York 
Post alleging that a former U.S. Ambassador, a man now deceased, had 
told several persons that he arranged for a sexual tryst involving you 
and one of your female staffers in Geneva in 1984.
    The President. I'm not going to take any sleazy questions like that 
from CNN. I am very disappointed that you would ask such a question of 
me, and I will not respond to it. I haven't responded in the past. I 
think it's--I'm outraged. But nevertheless, in this kind of screwy 
climate we're in, why, I expect it. But I don't like it, and I'm not 
going to respond other than to say it's a lie.

Israeli Policies

    Q. Mr. President, what is the outstanding achievement you achieved 
during this 24-hour period with the President?
    The Prime Minister. What?
    Q. The most outstanding achievement, do you think, to the people of 
Israel.
    The Prime Minister. Well, I believe that the first and the foremost 
importance of the visit is to try to establish relationship of trust and 
confidence. From the very beginning, from the visit of Secretary Baker 
to the region, I made it a point to put the facts, to put everything on 
the table to avoid in the future any misunderstanding because not 
stating exactly both our positions, sometimes they can bring differences 
of opinion. But the real issue is, even when there are differences of 
opinion, how to work together, Israel and the United States, to achieve 
our common goals, goals that we agree on.
    In what I have said and described here was basically the policies of 
the new government of Israel. We want, first, to try our best within the 
framework of the Madrid conference to move in the peacemaking process, 
not in the peace process.
    Second, we changed our national priorities from spending our own 
money, the Israeli taxpayer, on settlements that I define them in a 
certain way, and to take them and to shift them to cope with the real 
problems of Israel, unemployment, et cetera, in Israel.
    Thirdly, not to take steps that in accordance to our opinion can 
interfere with the peace negotiations. These are our decision. We are 
going to bring about rezoning, reclassification of government assisting 
to building houses, absorption, that we'll really shift them to what we 
believe should be.
    I presented the new policy to the President, to his colleagues, as I 
did to the people of Israel, as I did in the Knesset on the July 13 when 
I presented my government.
    Q. Mr. President----

Israeli Settlements

    Q. Prime Minister Rabin, during his campaign and after the election, 
distinguished between political settlements and the security 
settlements. After your long talks with Prime Minister Rabin, do you 
agree to that

[[Page 1337]]

distinction?
    The President. Well, we understand the position. All I will say is 
that I salute this change. We salute what the Prime Minister is trying 
to do. We understand his position. He understands our position. And 
obviously, we would not be going forward with this loan guarantee if we 
did not salute the change. So I'd just leave it right there.

Palestinians

    Q. Mr. President, are you satisfied, generally, with the modalities 
of autonomy that Mr. Rabin has presented here?
    The President. Modalities of the what?
    Q. Autonomy for the Palestinians?
    The Prime Minister. I didn't present modalities here. [Laughter]
    Q. Did you talk about the autonomy?
    The Prime Minister. Well, I described Israeli position. It was an 
exchange, first exchange between the President and me, on the issues 
that might be brought up in the coming bilateral negotiation and in the 
multilateral. It was in a form of consultation, not taking decisions. It 
was exchange of views, and I wouldn't go beyond that. The issues have to 
be solved, agreed on, between the parties to the conflict.
    Q. Mr. President, are you going to ask----
    Q. Why didn't you play tennis?
    Q. Mr. President----
    The President. I did the day before.

Secretary of State Baker

    Q. Are you going to ask Secretary Baker to take a different job?
    Q. Did you discuss Secretary Baker's imminent departure from the 
State Department? And I'd like to ask the Prime Minister what impact 
that will have on the peace talks.
    The President. Susan [Susan Spencer, CBS News] is referring to a lot 
of domestic speculation that the press has written about with such 
certainty and finality that what she's saying is that Jim Baker will 
leave the State Department. What I've said--I'm just filling him in and 
then I'll answer your question--[laughter]--what I've said is that if 
anything happens in that regard, I'll be sure to let them know. But the 
answer to your question is, that was not discussed with the Prime 
Minister.
    Q. Does the Prime Minister feel that that would have a major impact 
on the peace talks?
    The President. Nice try.
    The Prime Minister. I don't deal with domestic political American or 
personal domestic American problems.
    Q. Maybe one last question from the Israeli----
    The President. This is the final question because Marlin is looking 
very nervous, and I know we've got some logistics problems here.

Middle East Peace Talks

    Q. From both your opening statements, it seems like the onus now 
will be on the Arabs in the peace talks. My question to Mr. Rabin is: Do 
you expect this from the Americans? Do you expect them to put more 
pressure on the Arabs? And my question to Mr. Bush is: Are you actually 
going to do that?
    The Prime Minister. I didn't ask anyone to put pressure on anyone. 
We exchanged views in a form of consultation about the options, but I 
didn't ask for any pressure, as I expect that no one on the other side 
will ask the United States to put pressure on Israel.
    The President. One of the major accomplishments in the last few 
years is getting the parties across from each other at the peace table. 
That was not done through pressure. Peace will not be brought about 
through pressure. If the United States can be a catalyst for peace in 
the process, we want to be one. But no sovereign government is going to 
be pressured into reaching out and achieving peace, reaching out for and 
achieving peace. It just doesn't work that way.
    In any event, thank you all very much.
    The Prime Minister. Thank you.

                    Note: The President's 139th news conference began at 
                        9:27 a.m. at his home on Walker's Point.