    [Public Papers of the Presidents of the United States: George W. Bush (2001, Book II)]
    [July 19, 2001]
    [Pages 873-879]
    [From the U.S. Government Publishing Office www.gpo.gov]

    [[Page 873]]

    The President's News Conference With Prime Minister Tony Blair of the United Kingdom in Halton, England
    July 19, 2001

        Prime Minister Blair. Good evening, everyone. First of all, can I
    say how delighted I am to have President Bush here, not just here in
    Britain but also here staying with us, and Laura, tonight at Chequers.
    And we're looking very much forward to hosting them. And I think it is
    yet another example of the strength of the relationship between our two
    countries. It is a very strong relationship, a very special one.
        And I know in the discussions we've had we've ranged over many
    issues. Obviously, we started with the discussion of the upcoming G-7/G-
    8 summit where we agreed how important it is that we get across the
    strong message to people that the summit is important because it allows
    us to discuss issues of real importance to people. I have no doubt that
    we'll be with people there who will be making their protest, but I hope
    they do so peacefully, because some of the things we're discussing at
    this summit, in terms of global trade, in terms of the developing world,
    are things that are of huge importance not just to the most prosperous
    countries of the world but also to some of the poorest countries of the
    world.
        We touched then on many other issues in the course of our
    discussion, including, obviously, missile defense, the issue of climate
    change, and a good discussion on Macedonia and Northern Ireland, the
    Middle East process, and of course, the state of the world economy.
        And I'm sure you want to ask some questions about those things. But
    once again, can I say, George, how much I welcome you and Laura here,
    how delighted we are to see you. And I know and hope very much this will
    be a good evening for you and set you up in the right frame of mind for
    the summit ahead. [Laughter]
        President Bush. Thank you. At Camp David, Tony told me Chequers was
    a beautiful place, and he was telling the truth. And we're glad--Laura
    and I are glad to be here. I appreciate so very much your hospitality
    and your friendship. America and Great Britain have got a special
    relationship. We both have pledged to keep the relationship as special
    as possible, and I'm convinced it will continue to be.
        I, too, look forward to going to Genoa. You know, I am--I can't wait
    to make the case, along with Tony Blair, about the need for the world to
    trade in freedom. And for those who want to shut down trade, I say this
    to them as clearly as I can: You're hurting poor countries. For those
    who kind of use this opportunity to say the world should become
    isolationist, they're condemning those who are poor to poverty. And we
    don't accept it. We don't accept it.
        We've got a lot in common between our countries, most of which is
    values. We value freedom. We value political dialog. We value freedom of
    religion--freedom of the press, for that matter. But we also value the
    fact that we're responsible nations and that we realize there are some
    who are less fortunate than the great land Tony is the leader of, and
    our great land as well.
        So at the summit, we'll be talking about how best to help the
    continent of Africa deal with HIV/AIDS, how best to make sure our aid
    and loans work well, and how best to encourage the habits of freedom,
    starting with good education.
        So I'm looking forward to it, and I want to thank you for having
    Laura and me here. It's a great joy to be in your beautiful country.
        Prime Minister Blair. Right. We'll take some questions. We'll bring
    you a mike, I think.

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    Northern Ireland Peace Process

        Q. Could I ask you both about what you've been saying to each other
    about Northern Ireland and, particularly in view of the President's
    comments, whether you feel it's still possible that the package that
    Britain and Ireland are going to produce can be even-handed in the
    continued absence of decommissioning?
        And can I also ask you, Prime Minister Blair, about your thoughts on
    Jeffrey Archer, the former deputy chairman of the Tory Party and
    Conservative MP, starting a 4-year sentence tonight for perjury and
    perverting the course of justice?
        Prime Minister Blair. I'm afraid on the second part, I've really got
    nothing to say on that.
        In respect to the first part, the package that we put to the parties
    will be balanced because it will deal with all the outstanding issues.
    It will deal with the issues of the stability of the institutions, how
    we get a normalized situation--we've reduced troop movements and the
    numbers of troops in Northern Ireland dramatically, but we want to do
    more--how we make sure, too, that we get a police service that all parts
    of the community in Northern Ireland can support. And then also there is
    the issue of the decommissioning, the putting beyond use of paramilitary
    weapons. And obviously there's got to be action on all those fronts.
        And so we hope very much the people will respond positively.
    Because, as I often say to people, you only have to look at the
    situation in the Middle East to realize what happens when negotiation
    breaks down, when parties move apart from each other, and how quickly a
    situation that looked optimistic can become unstable and dangerous.
        And this is--this Good Friday agreement, this peace process is the
    only hope for people in Northern Ireland. And the package has been put
    forward by ourselves and the Irish Government together. And I hope
    people respond positively and realize that the future of generations of
    people in Northern Ireland depend on that positive response.
        President Bush. We did spend a fair amount of time talking about
    Northern Ireland. I've reiterated to the Prime Minister that I stood
    ready to help in any way--a simple phone call away. If there's anything
    I can do to help bring peace to the region, I will do so. And make no
    mistake about it, people shouldn't have any doubt as to where my
    Government stands. We stand strongly, side by side with Britain when it
    comes to decommissioning in Northern Ireland.
        Ron [Ron Fournier, Associated Press].

    National Missile Defense/Kyoto Protocol on Climate Change

        Q. A question for each of you, please. Mr. Prime Minister, does
    Saturday's successful test of a antimissile system in the U.S. affect
    your opinion at all of President Bush's plans to deploy a missile shield
    and scrap the ABM Treaty?
        And to you, Mr. President, as we speak, environmentalist ministers
    are meeting in Germany, trying to find a way to salvage the Kyoto global
    warming treaty. If the rest of the world proceeds without you, doesn't
    it isolate your policies and your country?
        President Bush. Ron's very good about taking one question and
    converting it to two. [Laughter]
        Prime Minister Blair. Well, first of all, on the subject of missile
    defense, obviously, we await a specific proposal from the U.S.
    administration. But I want to say this and say it clearly, that I think
    President Bush is right to raise the issue of the proliferation of
    weapons of mass destruction and say that that needs new and imaginative
    solutions, because it's a huge threat facing the whole of the world.
        Secondly, I think that that has got to, as I said at Camp David, has
    got to encompass defensive systems and offensive systems. And I think
    it's again sensible and

    [[Page 875]]

    right that we sit down and work our way through that.
        And the third thing is that we welcome very much the approach that
    President Bush and the administration have taken to consulting allies
    and also making it clear that they wish to have a dialog and a
    partnership with Russia about this issue.
        And I think that in combination, those things are bringing about a
    situation in which we can have a sensible and rational debate about an
    issue that is of fundamental importance facing the world. So I hope that
    in that spirit, you know, we will carry forward the dialog that we have
    achieved so far.
        President Bush. Let me comment on that, and then I'll comment on
    your other question. The thing I appreciate about the Prime Minister is
    that he's willing to think anew as we head into the future. It's hard
    for any country to commit to vague notions. But there are some leaders
    who just out of hand reject any willingness to think differently about
    security. And Prime Minister Blair is not that way. He's been very
    forthcoming. He's had great questions. He's been more than willing to
    listen to the philosophy behind moving beyond a treaty that has codified
    a relationship that no longer exists.
        ABM Treaty codified a relationship between enemies. Russia is not
    our enemy. And as we head into the 21st century, we must think about new
    ways to keep the peace. And the Prime Minister has been very positive.
    You know, some people just reject new thought out of hand. And that's
    certainly not the case. And as time develops, I will stay in touch--as
    our plans develop, I'll stay in touch with Tony as to what's going on.
    He's been a great person with whom to consult on this issue.
        The United States is concerned about the emission of CO2.
    We share the goal of reduction of greenhouse gases. We will be and are
    in the process--we'll be presenting a strategy that may have different
    means than Kyoto of achieving the same goal. And we're in the process of
    developing the strategy.
        People shouldn't, just because I gave an honest assessment of
    Kyoto's chances in the United States Senate and what it would mean to
    our economy, should not think that we don't share the same goal. We do.
    We want to reduce greenhouse gases. Ours is a large economy,
    generating--we used to generate more wealth than we are today, and as a
    result, we do contribute greenhouse gases to the atmosphere. And so
    we're concerned about it.
        But first things first, as far as I'm concerned. Our strategy must
    make sure working people in America aren't thrown out of work. My job is
    to represent my country, and I'm going to do so in a way that keeps in
    mind the ability for people to find work and for our Nation to be
    prosperous. And I believe economic growth and sound environmental policy
    can go hand in hand.
        Mr. Prime Minister, as I assured you, I will come to you with a
    strategy that conforms to the goals of Kyoto and one that is--that I
    hope people understand makes sense for our country.

    European Union-U.S. Relations

        Q. Mr. President, given the very strong relationship which you say
    exists between yourself and Tony Blair, between Britain and the United
    States, are you endangering that special, unique, close relationship
    because Mr. Blair wants to be a bridge between Europe and the United
    States, and yet you don't seem to be offering very much to help narrow
    the gulf which seems to be opening up between Europe and the United
    States on key issues?
        President Bush. I will let Tony Blair speak to how he feels my
    relationship with Europe--I'm not going to--you'll say my answer is not
    very objective, but frankly, after my last trip here, I think the
    European leaders got to know me and realize that our country will be
    engaged with Europe in all aspects.

    [[Page 876]]

        In the Balkans, I made it clear: We came in together, and we're
    going to leave together. When it comes to trade, I made it clear that
    we're a strong trading partner. We've got to work hard to reduce
    barriers that prevent us from trading freely. When it comes to defenses
    within NATO, we're more than willing to do our commitment.
        And you know, I appreciate Tony's friendship. I think people will
    find out that I'm plenty capable of conducting foreign policy for the
    United States in a way that reflects positively on my Nation. And I'm
    glad to be back in Europe. I look forward to a frank discussion in
    Genoa, and I'm confident that we'll find areas to work together on. When
    we disagree, we'll do so in a respectful way.
        Prime Minister Blair. Well, I would just like to add a word on that,
    if I could, James. First of all, I think that the way the President came
    to Europe and to Goteborg and made his presentation impressed everybody
    who was there. I thought it was a highly successful visit.
        And of course, there may be differences of the minute, for example,
    over Kyoto. Though again, I think it is helpful that the United States
    is saying, ``Look, this is not what we can agree to, but nonetheless, we
    agree with the aim. We agree with the objectives, and there are
    proposals that we will make as to how we can get there.'' Now, you know,
    we've had a very strong position in favor of Kyoto. That is our
    position, obviously. But the fact is that dialog there is extremely
    important.
        But you know, on a whole range of issues, Europe and America and
    Britain and America stand together. We're doing so in the Balkans. We're
    doing so trying to sort out the problems of Macedonia. We're doing so on
    the issue of world trade. We're going to do so again on issues like
    Africa and global health and debt, and where we're trying to go to the
    G-7/G-8 and present to the world an agenda for better and more free
    trade, for help for the poorest nations of the world, for stability in
    the world economy, which is of dramatic importance not just to our
    countries, not just to Europe and America but to the whole of the world.
        You know, this is a passionate belief I have, that I held in theory
    when I was an opposition leader and has strengthened in practice over
    the last few years that I've been Prime Minister. And that is, not
    merely is the relationship between Britain and America key--and we are
    and always will be key allies--but when Europe and America stand
    together and when they approach problems in a sensible and serious way
    and realize that what unites them is infinitely more important than what
    divides them, then the world is a better, more stable, more prosperous
    place. When we fall out and diverge and when people try and put
    obstacles in the way of that partnership, then the only people rejoicing
    are the bad guys. That is my basic view after these years.
        And just to make one other point: Since this administration has come
    to power, on the issue of trade, in particular, we have seen big steps
    forward in the relationship between Europe and America. These are the
    important things as well. There's a whole range of issues that I was
    dealing with a couple of years ago, which were tough issues here, that
    we've got resolved. So I think it's against that background that we make
    these judgments.
        President Bush. Randy [Randall Mikkelsen, Reuters].

    International Economy

        Q. Mr. President, will you be urging your G-7 partners to do more to
    bring major economies out of the doldrums? And will you heed the call of
    U.S. business and labor groups who urge you to discuss negative effects
    of the strong U.S. dollar in Genoa?
        And Prime Minister Blair, I'd like your views also on whether Europe
    is doing all it can to stimulate the global economy.

    [[Page 877]]

        President Bush. Well, one of the things I'll do, Randy, is to share
    with my colleagues the successes we've had at cutting taxes, as well as
    holding the line on spending--let me say this--successes we've had so
    far in holding the line on spending, but the President is given a veto
    for a reason, Mr. Prime Minister, and that's to hold the line on
    spending--as well as to assure them that our Fed is going to continue to
    watch our economy very carefully. The Federal Reserve is independent
    from our Government, but nevertheless, Mr. Greenspan is sending signals that he's concerned about the state
    of our economy. In other words, we're doing everything we can to, within
    our own borders, to deal with an economic slowdown.
        As for the dollar, the market needs to determine the price of the
    dollar. There's all kinds of folks in our country insisting the dollar
    be this way or the dollar be that way. The best way to determine the
    price of the dollar is to let the market determine that price. And
    that's my message to business, labor, anybody else who wants our
    Government to intercede in the market.
        Prime Minister Blair. Well, just shortly on the question of the
    European economy, obviously we want to see the European economy
    strengthened. I think the--quite apart from the impact of the world
    economy, particularly the U.S. economy, on Europe is the whole issue of
    economic reform in Europe.
        We now--one of the big changes in the direction of European economic
    policy over the past couple of years has been that every year now--and
    next year it will be in Barcelona in March--we hold an annual summit
    specifically on the issue of economic reform, in order that Europe
    should be not a fortress Europe but should be a Europe that is open,
    competitive, not just within Europe but with the rest of the world.
        Now, I think we've still got a lot of structural change to get
    through in Europe. And certainly we will be raising this, obviously, in
    the G-7/G-8 but within the European Union as well. It's important that
    we make big steps forward on that reform agenda, since whatever the
    state of the world economy, some of the rigidities we still have within
    our own economies have to be eliminated.

    National Missile Defense

        Q. Prime Minister, could you tell us whether you support President
    Bush's wish to set aside or get rid of the ABM Treaty? And for President
    Bush, could you tell us whether it is likely that you'll want to upgrade
    U.S. radar stations in the north of England for your missile defenses?
        Prime Minister Blair. Well, in respect to the first part, as I said
    a moment or two ago, we welcome very much the approach the U.S.
    administration has taken, which is to say, ``Look, the world has moved
    on. Let us look at what is the right framework for today, and let us do
    that in close consultation and dialog with Russia,'' since it's a treaty
    between these two countries. And I think that is the right approach to
    take.
        President Bush. I'm absolutely convinced we need to move beyond the
    ABM Treaty and will continue my dialog with President Putin in a couple days time. It is important for him to
    know, once again, to hear me say once again, Russia is not the enemy of
    the United States. There is no need for us to live under a treaty that
    codified a period of time in which the world was divided into armed
    camps. It's time to work together to address the new security threats
    that we all face.
        And those threats just aren't missiles or weapons of mass
    destruction in the hands of untrustworthy countries. Cyberterrorism is a
    threat, and we need to work on that together. There are all kinds of
    threats that freedom-loving people will face in the near future. And I
    look forward to discussing all those threats with President
    Putin, as I have with Tony Blair.

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        It's premature to determine how best to track missiles under a new
    strategic framework. So to answer your question about upgrading radars
    in Britain or in America or anywhere else, it is too early to determine.
    The problem we face under the current system is that it's impossible to
    do enough research and development to determine what will work. Therein
    lies part of the dilemma for the Prime Minister. He said, ``What do you
    want me to support? What are you proposing?'' And what I'm first
    proposing to Mr. Putin is that we move beyond the treaty so that we can
    figure out what does work.
        And I want to remind you all that he was the leader early on who
    said that the new threats of the 21st century will require theater-based
    systems that will be able to intercept missiles on launch. Mr. Putin
    said that. Of course, that's what I was saying in the course of the
    campaign, which led me to believe that there was some common ground. And
    that's the common ground on which we're exploring moving beyond the ABM
    Treaty. And I look forward to reporting back how the conversations go
    here pretty soon to my friend Tony Blair.
        John Roberts [CBS News].

    Stem Cell Research

        Q. I have a three-part question for you, Mr. President, and a one-
    part question for you, Prime Minister Blair.
        President Bush. Wait a minute, that's four questions.
        Q. Well, no, it's actually one question----
        President Bush. Okay, good.
        Q. ----in three parts. [Laughter] I'm wondering, sir, how it is that
    it's taking you so long to make a decision on whether or not to continue
    embryonic stem cell research? What is the basis of this compromise that
    we've heard about? And now that Senator Frist has joined Senator Hatch
    and former Reaganites in supporting a continuation of funding for
    embryonic stem cell research, do you believe you now have enough
    political cover on the right to make a decision in the affirmative?
        And Prime Minister Blair, as some U.S. laboratories, in anticipation
    of a negative decision, have started the process to move to Great
    Britain, I'd like to know your position on embryonic stem cell research
    in the context of the global advancement of science.
        President Bush. I'll start.
        Prime Minister Blair. You're welcome. [Laughter]
        President Bush. John, this is a very serious issue that has got a
    lot of ramifications to it, and I'm going to take my time because I want
    to hear all sides. I want to fully understand the opportunities and to
    fully think through the dilemmas.
        And so I will make an announcement in due course, when I'm ready.
    And it doesn't matter who is on what side, as far as I'm concerned. This
    is a decision I'll make. And somehow to imply that this is a political
    decision is--I guess either doesn't understand how I--somebody doesn't
    understand how I think or really doesn't understand the full consequence
    of the issue. This is way beyond politics.
        This is an issue that speaks to morality and science and the
    juxtaposition of the both. And the American people deserve a President
    who will listen to people and to make a serious, thoughtful judgment on
    this complex issue. And that's precisely how I'm going to handle it.
        Prime Minister Blair. If you'll forgive me, John, I'm not going to
    get into any of the debates that are happening in your country. We have
    made our decision here, as you know and as your question implied. The
    only thing I would say to you about this issue is that it is an
    extraordinarily difficult and sensitive question for people. And I
    think, certainly, the best way of resolving it is for people on whatever
    side of the argument they are to realize that the people on the opposite
    side are not necessarily badly intentioned or badly motivated.

    [[Page 879]]

    They're just, in an immensely difficult situation, taking a different
    perspective.
        I think if people approach the question with that type of good will,
    even towards people with whom they profoundly disagree, then I think the
    answers are, if not easier to find, they're easier then to explain. But
    as I say, we took our decision here, but your decision is for the
    President and people in the United States.
        President Bush. I was wondering if anybody has got any extra
    Pepsodent? [Laughter] Get it?
        Prime Minister Blair. Okay. Thanks a lot.

    Note: The President's news conference began at 6:30 p.m. at Halton House
    at the Royal Air Force Halton base. In his remarks, he referred to
    President Vladimir Putin of Russia.