[Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (1999, Book II)]
[September 9, 1999]
[Pages 1511-1517]
[From the U.S. Government Publishing Office www.gpo.gov]



Remarks on the Asia-Pacific Economic Cooperation Summit and an Exchange 
With Reporters
September 9, 1999

    The President. Good afternoon. Before I leave on my trip for New 
Zealand, I wanted to say a few words about the trip and a couple of 
other issues. These APEC summits started in 1993 when I first invited 
the leaders of the Asia-Pacific region to meet in Seattle, Washington. 
They bring together the leaders of more than half the world's people and 
half of its economic activity.
    What we do there will help to decide whether the global economy 
continues to move in the direction of greater openness and integration, 
equity, and growth in the next century. This year one of my most 
important goals is to get a commitment on the part of all our Asian-
Pacific partners to rapid, wide-ranging market opening so that we can 
launch a new trade round at the WTO meeting in Seattle in December. We 
must stand together against protectionism and for a common future of 
prosperity.
    During the global financial crisis over the last 2 years, the fact 
that the United States kept its markets open bolstered Asia and the 
world. It helped to keep the crisis from becoming even worse, and it 
certainly helped to turn it around. All of this was good for American 
workers, as you can see by the continued low unemployment rate in our 
country.
    I will meet with Prime Minister Obuchi and 
President Kim in Auckland to have the 
opportunity to discuss not only economic issues but also the difficult 
issues surrounding our relationships with North Korea. I will also meet 
with President Jiang and with the new Russian 
Prime Minister, Mr. Putin. We will be meeting 
following a difficult period in Asia.

[[Page 1512]]

    There are encouraging signs of recovery from South Korea to Thailand 
to Japan. There are also continuing difficulties, as all of you know, 
caused by everything from economic distress to neglect of human rights. 
Nowhere are those difficulties more pressing than in Indonesia. It is 
the fourth-largest country in the world and the largest Islamic country. 
It has been undergoing an important democratic transformation. It has 
the capacity to lift an entire region if it succeeds, and to swamp its 
neighbors in a sea of disorder if it fails.

East Timor

    Precisely because Indonesia's future is important, I am so deeply 
concerned by the failure of its military to bring a stop to gross abuses 
now going on in East Timor. After 24 years, the people of East Timor 
voted overwhelmingly for independence. Now, there are forces who want to 
reverse the popular will. At stake are the lives and way of life of 
innocent people. At issue is whether the democratically expressed will 
of the people can be overturned by violence and intimidation.
    Also at stake is Indonesia's own transition to civilian democratic 
rule. For these reasons, we will continue with our allies in Asia and 
elsewhere to make it clear that we expect the authorities to live up to 
their word and to their responsibilities.
    The Indonesian Government and military are responsible for the 
safety of the East Timorese and of the U.N. mission there. If Indonesia 
does not end the violence, it must invite--it must invite--the 
international community to assist in restoring security. It must allow 
international relief agencies to help people on the ground. It must move 
forward with the transition to independence. Having allowed the vote and 
gotten such a clear, unambiguous answer, we cannot have a reversal of 
course here.
    The overwhelming weight of international opinion, from Asia to 
Africa to Europe to North America, strongly agrees with this position. 
Right now, the international financial institutions are not moving 
forward with substantial new lending to Indonesia. My own willingness to 
support future assistance will depend very strongly on the way Indonesia 
handles this situation.
    Today I have also ordered the suspension of all programs of military 
cooperation with Indonesia effective immediately. Our military leaders 
have made crystal clear to senior military officials in Indonesia what 
they must do to restore our confidence. In the past few days, I have 
made many phone calls with our partners in the region and around the 
world and with Secretary-General Annan. I applaud 
the efforts, especially, of Australia to mobilize a multinational force 
to help provide security in East Timor. I thank all countries that have 
already agreed to participate.
    The United States is prepared to provide support to this Australian-
led effort. Although we've made no final decisions, we are consulting 
with Congress now on the best way to support this mission if it goes 
forward.
    The will of the people of East Timor must not be thwarted. They have 
a right to live in peace and security, and they have earned and voted 
for their freedom. This issue obviously will be an important part of our 
discussions in New Zealand, and I look forward to having the opportunity 
to meet with all of the leaders on this and the other matters we will 
discuss. Thank you.

Tax Cuts

    Q. Mr. President, Republicans in Congress are saying that if you 
veto their tax cut package, they're not likely to send you another one. 
Are tax cuts dead for this year, or will you offer them a little bit 
more, perhaps, than the $300 billion you said you might be willing to 
accept?
    The President. My bill is $250 billion, and it provides almost 
exactly as much aid to middle class Americans as theirs does. Whether 
there is a bill, of course, is up to them; they can control what bills 
come up. But if they're saying, ``Well, it's our way or no way,'' then 
that is evidence that this has been pretty much about politics all 
along.
    I'm all about progress; I want to get something done. I'd like to 
see us secure and modernize Medicare. I am willing to work with them on 
the Social Security issue. I think we ought to run the life of the 
Social Security Trust Fund out beyond the life expectancy of the baby 
boom generation, and I am willing to provide for a modest tax cut that 
will not undermine our ability to pay down the debt and make this 
country debt-free over the next 15 years. So I'm willing to work with 
them.
    There is always some flexibility in this budget. We can have an 
agreement, but it is up to them. They know good and well I'm not going 
to sign this bill. It's wrong for America; it's

[[Page 1513]]

bad for the economy; it will lead to an increase in interest rates and a 
cut in education spending and a lot of other things that won't be good; 
and it won't add a day to Social Security or Medicare, and it will 
undermine our ability to pay down the debt. So they know that. The 
question is whether we're going to meet and work together. My door is 
open, and I hope we will.
    Go ahead, Ann [Ann Compton, ABC News]. Did you have a question?

Clemency for Members of the FALN

    Q. I did, about the FALN. Do you think now that the clemency has 
been accepted, but these--the prisoners say they are political 
prisoners; they challenge the restrictions on them. And your 
disagreement with the First Lady, can you describe to us how you 
discussed it with her on the issue of clemency?
    The President. Well, first of all, let me discuss this issue on the 
merits so you'll know what happened. It came in what I would call the 
ordinary course of business from the Counsel's Office, and I received a 
very detailed statement of the facts and the claims. I was requested by 
hundreds of people, including President Carter, 
Bishop Tutu, and many other religious leaders 
and Members of Congress, to look at this and act favorably on it. And 
then, obviously, there were those who disagreed.
    My judgment was that these people should be offered a conditional 
clemency for two reasons: One, none of them, even though they belong to 
an organization which has espoused violent means, none of them were 
convicted of doing any bodily harm to anyone; and two, they had all 
served sentences that were considerably longer than they would serve 
under the sentencing guidelines which control Federal sentencing now. 
Most of them had been in for somewhere around 19 years; they had served 
very long sentences for offenses that did not involve bodily harm to 
other people.
    Because I did not believe they should be held in incarceration, in 
effect, by guilt by association, I agreed to offer them clemency if they 
would abide by the conditions of parole and specifically renounce 
violence.
    What that means is, if they get out and they violate the conditions 
of parole, and particularly if they are engaged in any way with people 
who are espousing violence, that their parole will be revoked and 
they'll have to go back to prison. So under those circumstances, I felt 
then and I still feel that that was the just decision.
    She didn't know anything about 
it, as far as I know, until someone from her office called and asked her 
for a comment, because I did not discuss it with her. I haven't 
discussed other clemency issues with her, and I didn't think I should 
discuss this one. So it was up to her and entirely appropriate for her 
to say whatever she wanted to about it. But I did what I thought was 
right, and that's what I'll continue to do.
    Gene [Gene Gibbons, Reuters].
    Q. As a very skilled politician, using that perspective, if your 
wife decides on a run for office, does she figure to be hurt by what 
many people perceive as a flip-flop on the issue of clemency for the 
Puerto Rican nationalists?
    The President. Well, you know, they'll have to evaluate that as they 
please. You know what she said in her 
statement; I don't know that that's a flip-flop. I had a different 
position. I thought they should be given another week. If, in the course 
of this week, if we had come to tomorrow and they hadn't taken it and I 
had revoked the offer, would that have been a flip-flop by me? I don't 
think so.
    The reason I felt they should be given to this week is, I knew that 
their lawyer was actually physically going around to see all of them and 
would not finish until, I think, yesterday. So I thought they ought to 
be given that amount of time, and it's a judgment I made.

East Timor

    Q. Mr. President, what level of military support are you prepared to 
provide to any peacekeeping mission, and what recourse do you have if 
Indonesia continues to refuse an international mission for East Timor?
    The President. The answer to the first question is, we're still--
we're consulting with the Australians and with others, and we're also 
talking to interested Members of Congress about this, and no decision 
has been made. I want the American people to know two things: Number 
one, the Australians have made it clear that they, being the nearest 
military authority, intend to play the largest role and provide the 
lion's share of the effort, and that many other countries have already 
agreed to contribute.
    But, secondly, the United States has been, certainly since the 
Second World War, and indeed, going back before, heavily involved in the

[[Page 1514]]

Asia-Pacific region. The Australians and many of these other countries 
have been our allies in every difficulty that we have faced, and I 
believe that we should support them in an appropriate way. But that is 
something that would still have to be worked out.
    Now, the second question you asked is the most difficult one. There 
are any number of countries that are willing to support this endeavor; 
there are any number of countries on the Security Council who are 
willing to support it if Indonesia will ask. The problem is, we're in 
this interim period where the East Timorese have voted for independence, 
but East Timor is still a part of Indonesia, and we're going through 
this transition period.
    The frustrating thing to me--and I don't know how many phone calls 
I've made the last 3 or 4 days about this, but the thing that's 
frustrating people all over the world is, they either can't or won't 
stop the violence, which is leading people to leave. But they don't want 
to admit they can't, so they don't want to ask anybody else to come in. 
That is why I have made the statements I've made today about economic 
aid and the military cooperation.
    I tried to do this with telephone calls, working with others. I have 
seen the frustration and the anxiety in the voice of the Portuguese 
Prime Minister and any other number of 
leaders who are passionately concerned about this area, and obviously 
Prime Minister Howard in Australia, Prime 
Minister Shipley in New Zealand, and 
others. We are doing our best. Kofi Annan is 
doing his best. He sent a U.N. delegation there. They arrived there 
yesterday. So this may be a question that you'll have to ask me again 
tomorrow and the next day and the next day, because I don't have a clear 
answer for you yet.
    Q. What are they telling you? What are the Indonesians telling you, 
and have you thought of economic sanctions?
    Q. [Inaudible]--force change in Indonesia right now would suspend 
temporarily IMF and World Bank, who are set to go there. Do you think 
that's the right approach?
    The President. First of all, I think today the right thing to do is 
to make it clear what our intentions are. And our intentions are: one, 
to stop military and military cooperation right now until this matter 
gets resolved; and two, we have sent a clear signal about what we will 
do on economic cooperation if it is not resolved.
    It would be a pity if the Indonesian recovery were crashed by this, 
but one way or the other, it will be crashed by this if they don't fix 
it, because there will be overwhelming public sentiment to stop the 
international economic cooperation, but quite to the side of that, 
nobody is going to want to continue to invest there if they are allowing 
this sort of travesty to go on.
    So I think one way or the other, the economic consequences to them 
are going to be very dire, but I think--my statement clearly signals 
where I'm prepared to go on the economic issue.
    Yes.
    Q. If you got asked this, I didn't hear the question and I 
apologize. But what about in terms of support troops for any 
international mission or infantry-level troops? Would it be mostly just 
support the United States is considering at this point?
    The President. There are any number of ways that we can support this 
mission and participate in it. But I normally make a practice, and you 
will know now after several years of our doing this from, I guess we 
started with Haiti and then Bosnia, I like to consult with the leaders 
of Congress. They've been gone; they're coming back.
    What I want the American people to know is that the Australians are 
clearly prepared to lead this. Prime Minister Howard's been very strong, very unambiguous, and very impressive, 
I think, in his determination to try to help. Several other countries 
have said they will go along if the Indonesians ask and the United 
Nations approves. And I think the United States should support this 
mission.
    Whatever we do, the lion's share of the people involved will be from 
the region. But a lot of those people, starting with the Australians, 
have been with us every step of the way for decades now, and I think we 
have to be involved with them in whatever way we can; and our military 
people will have to work that out, and we'll have to work that out--some 
consultation with Congress as well.
    Yes, in the back.

Medicare

    Q. Yesterday the Senate was nearing to have some form of 
prescription drug coverage. Would you be willing to compromise with the 
Republicans on this issue to include a means testing

[[Page 1515]]

on Medicaid coverage in order to jump start negotiations?
    The President. In order to jump start what? I think the question is, 
would I be willing to work with the Republicans and take a smaller drug 
benefit in order to get one started? Is that what you said? Is that--
what did you say? I don't want to misstate you.
    Q. If you would accept means testing.
    The President. Well, what I don't want to do is to accept something 
that's so meager it doesn't mean anything. The real problem with the 
medical benefits, the prescription drug benefits available to seniors 
today in so many of these programs is that they are so expensive, 
they're unaffordable, or they're so meager, they don't mean anything.
    Any proposal the President sends to Congress has got to be, by 
definition, subject to negotiation and modification. I mean, that's just 
any proposal, and you know that. There are things we could do apart from 
the prescription drugs proposal to come closer together on Medicare. 
They have acknowledged, as Senator Lott said, which, as I said at the 
time, for him was probably high praise, when I proposed my Medicare 
program and I called him about it, he said, 
``Well, it's not as bad as I thought it would be,'' which is another way 
of saying that I adopted a lot of the competitive mechanisms and 
structural reforms in Medicare that were embraced by the Medicare 
Commission.
    I'm willing to work with them, but I don't want to undermine the 
universal character of the program, the clear benefits of the program. I 
don't want to force people into managed care by some pricing gimmick, 
and I don't want the drug benefit to be so small as to be meaningless or 
so expensive as to be unaffordable. And I think that--I frankly think 
the areas we have for compromise and where I think they want to go may 
be more in other areas. But I am willing--I just want to sit down and 
talk to them about it.
    Now, we are going to have a chance to do that because Senator 
Roth has committed to mark up a 
Medicare bill. And so what I would urge you to do is to watch the 
progress of the Medicare bill in the Senate, in the Finance Committee, 
and see what we have to say about it. And you'll see whether we're 
working together or at cross purposes.

East Timor

    Q. You've left a big blank on what kind of response you're getting 
from the Indonesian Government. You keep saying what we're willing to do 
and what the Australians--what are they----
    The President. The reason I left a big blank there is that, so far, 
both the political and military authorities have been unwilling--they 
have been very clear; they do not want to ask for international 
assistance.
    Now, that is subject to one of two or three interpretations. 
Interpretation number one is, they believe they can stop this madness in 
East Timor and they want to do it, and they don't want to have to admit 
that they have to have help to do it. Two is, nobody's got the authority 
to make a decision because it's chaotic there; they've already had a 
Presidential election and parliamentary elections, but they haven't, 
because of the complex system for picking a new leader, they haven't 
done that. Three is that at least some elements in the country support 
what is happening in East Timor for whatever reasons.
    In other words, they didn't like the results of the referendum, and 
they're trying to undo it by running people out of the country or into 
the grave. There may be other explanations. But, no, we've gotten very 
clear answers, which is at this time they are not prepared to ask for 
international help, and we have continued to press them in our military-
to-military contacts, which have been quite extensive over the last 
several years. General Shelton, in 
particular, has worked very, very hard to push the Indonesians to send 
people in there that can stop this killing and stop these people from 
being run out of their country.
    We want to get the humanitarian agencies in there as well. So that's 
what we're doing. But we've gotten a clear answer. The answer to date 
has been no, and that's what we're frustrated about, because if the 
answer were no and they were fixing the problem, that would be the best 
of all worlds.

Japanese Economy

    Q. Mr. President, are you confident that Japan is on the path to 
economic recovery? Today they reported a second straight quarter of 
economic growth.

[[Page 1516]]

    The President. They're doing better, and I'm real pleased about it. 
I think the world should be pleased about it. I know some in America are 
worried. They're afraid that a resurgent Japan means more competition 
for money and more pressure on the dollar. But on the whole, a Japan 
that could buy more American products and buy more products in Asia from 
other Asian countries would be very much good for the global economy and 
therefore good for America's working people.
    So you're asking me, do I know for sure that their recovery is 
underway? I think they're doing better, and I think Mr. Obuchi has shown real ability, real talent in getting people 
together.
    We--as you know, our Treasury officials have continued to recommend 
things in conversations with the Japanese that we think will help to 
speed up the recovery, but we're working with them well, and I'm pleased 
that they seem to be turning around. It's a good thing for the word.

China-U.S. Relations

    Q. Are our relations with China on the mend now? And what are the 
prospects for signing a WTO deal with President Jiang?
    The President. Well, we've done our best to do what I think is the 
honorable and decent thing in the wake of the terrible accident 
involving the Embassy in Belgrade. And we have made it clear in the 
recent tensions between Taiwan and China that we still strongly support 
the ``one China'' policy and the so-called Three Noes. But we also 
believe that any differences between them should be resolved in a 
peaceful manner, and we feel very strongly about it.
    I hope that those things and the passage of time will permit us to 
resume constructive conversations with the Chinese, beginning with my 
meeting with President Jiang, and I would very 
much like to resume the WTO negotiations. I think it would be good for 
China, good for the United States, and good for the world economic 
system. So I hope we'll be able to resume our talks, and if we resume 
them, obviously, I hope we'll be able to bring them to a successful 
conclusion.

Religious Persecution in China

    Q. Sir, have you seen the new State Department report on religious 
persecution out today, and do you plan on talking about China's actions 
when you meet----
    The President. On what?
    Q. ----the State Department report on religious persecution. Have 
you seen that today, and do you plan on talking about China's actions, 
the allegations, when you see President Jiang on the weekend?
    The President. I have not seen it, but I will see it, and if I think 
it's appropriate, I'll certainly bring it up. I brought it up before, 
and as you remember, I actually sent a delegation of religious leaders 
to China to tour around the country and to talk to religious leaders in 
China and also talk to high representatives of the Chinese Government 
about that. That's a big issue for the United States. We have 
legislation on it, and it's a very large issue for me, personally.
    I've been working on that issue ever since I got here and in many 
countries, so I look forward to having a chance to review the contents 
of the report and to taking appropriate action. Thank you.

Attorney General and FBI Director

    Q. There's a lot of pressure on Reno to resign. Do you think Freeh 
should resign?
    The President. I think Janet--first of all, 
in terms of the merits of this and the FBI, I don't have anything to add 
to what I said last week. I think that she did the right thing in asking 
an outside person to review it. I think that Mr. Freeh did the right thing in supporting that. I've known Senator 
Danforth for--well, I met him when 
President Carter was in office, sometime during that period, so 
somewhere around 20 years. And I have always thought him an honorable 
man and an intelligent and straightforward man.
    The only thing that I would ask is that he conduct a thorough and honest inquiry and do it as 
promptly as he can so that we can get the facts, take appropriate 
action, and go forward. But based on what I know of him and what I have 
observed, I think that's a good move by the Attorney General, and I certainly don't think there's any reason for her 
to resign.
    Thank you.

Clemency for Members of the FALN

    Q. Mr. President, can you say that New York senatorial politics 
played no role in the Puerto Rican decision?
    The President. Absolutely. Absolutely. I got the memo from Mr. 
Ruff. I didn't know it was coming; it came 
with all the other papers I

[[Page 1517]]

get every day and every week, and I dealt with it the way I deal with 
everything.
    Q. The First Lady says you didn't tell her about your deadline when 
she----
    The President. That's also true.

Note: The President spoke at 5:26 p.m. on the South Lawn at the White 
House prior to departure for New Zealand. In his remarks, he referred to 
Prime Minister Keizo Obuchi of Japan; President Kim Dae-jung of South 
Korea; President Jiang Zemin of China; Prime Minister Vladimir Putin of 
Russia; U.N. Secretary-General Kofi Annan; former President Jimmy 
Carter; Archbishop Desmond Tutu; Prime Minister Antonio Guterres of 
Portugal; Prime Minister John Howard of Australia; Prime Minister 
Jennifer Shipley of New Zealand; former Senator John C. Danforth, 
recently appointed Special Counsel to investigate the Justice 
Department's role in the 1993 siege in Waco, TX; and former Counsel to 
the President Charles F.C. Ruff. A reporter referred to FALN, the Puerto 
Rican Armed Forces of National Liberation.