[Public Papers of the Presidents of the United States: George W. Bush (2001, Book II)]
[July 22, 2001]
[Pages 888-894]
[From the U.S. Government Publishing Office www.gpo.gov]
The President's News Conference With President Vladimir Putin of Russia in Genoa
July 22, 2001
President Putin. Good morning. We've just finished a meeting with
the President of the United States and discussed the issues on a whole
wide range of subjects. First and foremost, I wanted to say with great
satisfaction that our meeting was held in a very frank and open
atmosphere, and there is no doubt, absolutely, that I can say and
confirm that we've maintained, not only, but in many ways strengthened
the spirit of Ljubljana.
Naturally, we discussed the issues that were raised at the G-8,
issues of security, environment, education, security. And the issue here
led us to discuss the world architecture of the 21st century and the way
to improve civilization in the future.
I can frankly tell you that this part we discussed together. Just
one on one with the President, it seemed to me that his thoughts and his
mental reasoning is very deep, very profound. We were both very
interested in having a continuation of this dialog with the American
people, with its leader. Approaches which were stated by the President
in the past, without any
[[Page 889]]
doubt, are going to be studied by us, and I can repeat once again will
be positively accepted.
President Bush and I have analyzed how our recent accords are now
being implemented. We've put forth several new steps in terms of setting
forth a long-term cooperation which is not subject to any kind of
dealmakings but a very good, sound, long-lasting attitude. Today in
Russia we have a very positive dynamism, and we have stated that, as
well.
The differences in approaches on a couple of topics is still there.
However, what is more important is that we are aimed--both of us are
aiming at partnership, to look forward to well-reasoned, well-balanced,
carefully weighed approaches and solutions.
Naturally, we discussed the issue of strategic stability. There we
spent a lot of time. We talked in great detail. We've reached a most
important accord, agreement on the beginning and the schedule for
consultations. In Ljubljana we talked about setting up a working group
or series of working groups. As you know, in Moscow here, in a few days,
Condoleezza Rice will come to visit us, and we will work out, finally,
the group structure within the overall interagency structure of foreign
ministry, defense ministry, and others.
I have to say that to some extent what was unexpected both for me
and, I think, for President Bush, as well, was the understanding that
was reached today between us on the issue that the offensive arms and
issue of defensive arms will be discussed as a set. We're going to be
talking about the mutual striving toward cutting back significantly
offensive arms. We're not really ready at this time to talk about the
threshold limits or the numbers, themselves, but a joint striving exists
and the specialists will get together, and they'll make some
recommendations. But we are aiming at moving in that direction.
I told the President of the United States about our proposal vis-a-
vis the start of consultations on strategic stability issues as a whole.
And I think that in the very nearest future, I repeat once again that
our specialists are going to work in this direction. I think they're
going to make a lot of progress and be quite successful.
Naturally, we discussed very, very sharp problems in regional
issues. We talked about joining our forces in trying to solve some
conflicts. We repeat again that the overall dialog on getting our
positions coordinated is the very best approach to U.S.-Russian
relations.
Bilateral issues were especially stressed, economic cooperation.
And I have to say here that we have a common approach towards developing
very dynamically in this sphere. We have very good precedents and very
good foundations for this.
We also know that our business societies are also very interested
in this. We've discussed a series of contacts and the schedule for
upcoming contacts in the economic field, talked about our next meeting--
the nearest one will be the APEC meeting in Shanghai. And then the
President very kindly confirmed his invitation to me to come to the
United States, and we talked about that agenda, too.
So that's all I wanted to say as an opening remark.
Thank you very much.
President Bush. Thank you, Mr. President. First, both of us believe
strongly that the summit we just attended was a success, and we want to
thank the people of Italy and Genoa for their hospitality.
Secondly, we did have a very constructive dialog--certainly made--
made my impressions of Slovenia--confirmed my impressions of Slovenia,
that this was a man with whom I could have an honest dialog, that we can
discuss our opportunities and have frank discussion of our differences,
which we did.
I appreciate so very much President Putin's willingness to think
differently about how to make the world more peaceful. He cares deeply
about the citizens of his land.
[[Page 890]]
I, obviously, care deeply about the citizens of my land. We're young
leaders who are interested in forging a more peaceful world.
And along these lines, as the President said, that we're going to
have open and honest dialog about defensive systems as well as reduction
of offensive systems. The two go hand in hand in order to set up a new
strategic framework for peace. And along these lines, as the President
mentioned, my National Security Adviser, Condoleezza Rice, will be visiting in Moscow, the purpose of which
is to lay out a specific timetable of discussions between our defense
ministers and our foreign ministers.
So as we can continue progress to find common ground in a--to make
the world more peaceful, both of us want to seize the moment and lead.
And I appreciate this attitude so very much with President Putin.
Secondly, we did talk, spent time discussing economic cooperation.
There will be a statement put out after the meeting on both, by the way,
the strategic framework discussions as well as the economic cooperation
along these lines. Secretary Evans and
Secretary O'Neill will be in Moscow next
week to discuss a wide range of topics.
But one of the things that is clear and evident is that the
President understands the need to create a framework for entrepreneurial
activity. As I mentioned in my last press conference, I will mention
this again, I am impressed by the fact that he has instituted tax
reform, a flat tax. And as he pointed out to me, it is one of the lowest
tax rates in Europe. He and I share something in common: We both proudly
stand here as tax reformers. And I think the American business leaders
who look to Russia will appreciate certainty in the tax code and
certainly will appreciate a lower tax rate than in other places.
But we've got a lot of areas for growth and discussion, ranging
from international trade to investment opportunities within the
Federation.
With that, I will be glad to answer--both of us will be glad to
answer a few questions from you. Let's make your questions short, so
that we won't leave my wife waiting at the tarmac
in Rome. [Laughter]
Strategic Stability/Global Warming
Q. You were saying just a little while ago about how strategic
stability and space has been discussed. How do you see the biggest
difficulties in this dialog? What are the principal differences between
the two countries? And how do you see overcoming these differences?
And your proposal on conference, holding a conference in Moscow on
the environment, how were the other G-8 partners receiving your
invitation to Moscow?
President Putin. As far as the ABM Treaty and the issues of
offensive arms, I've already said we've come to the conclusion that two
of these issues have to be discussed as a set, as one set. This is no
doubt whatsoever; one and the other are very closely tied. Neither one
nor the other side should feel it's somehow threatened or constrained.
I felt and continue to feel that these most important kinds of
issues--we have to maintain a balance, thanks to which mankind could
live in an environment of stability and relative peace. This is an issue
of principle, and that's first.
Second, we share the position of the U.S. President on the need to
have large cuts in offensive arms. I've already spoken to this, and
together we're going to move forward in this direction, substantially
changing the situation in the world, making it better throughout the
whole world, reducing the thresholds of confrontation. Without any
doubt, this would ameliorate the climate throughout the whole world.
There has to be absolutely no doubt that this is going to happen.
[[Page 891]]
Now, as far as your issue on the international conference in Russia
on the ecology or the environment and reducing the dangers to the
environment, I can say the following: Prior to coming here to Genoa, I
held a meeting with our specialists, with our physicists, our
scientists, members of the cabinet who are involved in environmental
affairs. And I have to say that in Russia, we have some people, some
specialists who are known throughout the world, really big-time
specialists, and they told me that even if we fully implement the Kyoto
Protocol, fully, this is going to affect the climate as it is today, but
the changes to that will be very minor. In other words, the Kyoto
Protocol is simply not sufficient to substantially improve the ecology
in the world, although the movement that we're moving in is in the right
direction.
But I want to say that Russia is still for the Kyoto Protocol. But
what's important is that the scientists themselves, political leaders,
ecologists, people in society, Government leaders, never, ever got
together once. Each of these groups sits there alone and out of their
own corner reviews this issue. And the thought was to get everybody
together on one common platform.
This was supported very energetically by the President of the
United States and by other colleagues. Along with that, President Chirac
stressed the need to attract the civilian population, the
nonspecialists, to have them participate, people from society at large.
And for this, I want to thank our colleagues for having supported this.
Thank you very much.
ABM Treaty/Nuclear Arms Reductions
Q. President Putin said several days after your first meeting that
Russia would increase its nuclear arsenal--[inaudible]. Have you
convinced him to scrap the ABM Treaty without building up his nuclear
arsenal?
And to you, Mr. President: You just said there is absolutely no
doubt that there will be reductions on the Russian side of its nuclear
arsenal. Does that mean that you are no longer saying that you will
increase your arsenal if the U.S. proceeds with missile defense? Have
you changed your position?
President Bush. Well, first, Ron [Ron Fournier, Associated Press],
let me start by saying how optimistic I am about the possibilities of
reaching an accord. One of the things about the person with whom I'm
talking, President Putin, is that he has agreed, like I have agreed, to
find common ground, if possible. So I believe that we will come up with
an accord. Let me say this: I know we'll work hard to an accord, to see
if we can't reach an accord about both a new strategic framework for
defensive weapons as well as the need to reduce offensive weapons in
order to make the world more peaceful.
The only thing I can do is characterize, once again characterize
our discussions as open and optimistic and very positive. I was struck
by how easy it is to talk to President Putin, how easy it is to speak
from my heart, without, you know, fear of complicating any relationship.
And I enjoyed listening to what he has to say, as well.
I'm optimistic that we can get something done. And it's with that
spirit that we send Condi Rice to Moscow to
formalize the process, to answer questions. Inevitably, there will be
questions because, after all, what we're talking about doing is changing
a mind-set of the world. We're basically saying, the cold war is forever
over, and the vestiges of the cold war that locked us both into a
hostile situation are over. And we're exploring the opportunity to
redefine the strategic framework for keeping the peace not that as
existed in the past but a strategic framework as we go out in the 21st
century. It's an exciting opportunity. And I can tell you that the
discussions have been very meaningful.
Mr. President.
[[Page 892]]
President Putin. Thank you. Now, as far as possible answer or
response, as you say, from Russia, in the event that one side leaves the
ABM Treaty, from the 1972 treaty, then I can say the following: We were
talking about the possible kinds and versions of response in the event
that one side comes out unilaterally. I was not talking about increasing
the missiles. I was talking about how you would substitute single-unit
warheads, make them MIRV warheads.
But as we said today--if as we said today and if as we understood
from each other today, we are ready to look at the issue of offensive
and defensive systems together as a set, we might not ever need to look
at that option. But this is one of the subjects of our future
discussions.
As a whole we agreed, in general, that in any version, today we can
go forward toward reducing offensive arms. I'm telling you this with
full responsibility, and I'm telling you that within--this is an issue
of the qualitative and quantitative numbers. But this is, of course--
we'll let the specialists sit down and talk about those numbers.
G-8 Summit
Q. A question to both Presidents: Please tell us how you assess
the Genoa summit results from the point of view of the future G-8s,
because you've got all these anti-globalist demonstrators and others.
President Bush. Well, I'm looking forward to future G-8 summits.
People should be allowed to protest in a peaceful way. The great thing
about freedom is, it provides an outlet for people to express their
differences. Having said that, I believe that which we discussed today
and the last couple of days will make the world a heck of a lot more
prosperous and peaceful place.
The philosophy of free trade and starting a new round of free trade
discussions makes eminent sense, not only for those who happen to be
prosperous today but for those who aren't. And all the demonstrators and
all the folks have to do is ask the leaders who came from the developing
nations. Ask my friend from El Salvador what trade means to him.
And so I reiterate what I said before: People are allowed to
protest, but for those who claim they're speaking on behalf of the poor,
for those who claim that shutting down trade will benefit the poor,
they're dead wrong.
President Putin. I have to tell you that the people who are out on
the streets, then talked about the issues of the poor countries and
their problems, and those who gathered within the framework of the 8
were all taken by one and the same series of issues. In this sense, we
can say that we're all of the same mind. But unlike those who chose the
extremist ways of expressing their minds, those who worked here tried to
find solutions, ways to get to the end solution, specific kinds of
solutions, which realistically could affect, I hope, will affect the
condition in which the very poorest countries are living in the world
today.
That's why I very highly praise the results, the level, and the
nature and the character of these discussions. I think we need these
kinds of meetings, and I think they will continue. Naturally, we're
going to have to pay more attention to the quality of the kinds of
decisions that we take and how to implement them fully to the end.
Now as far as the dialog with civil society, one of the fora and
one of the ways of discussing is in a civilized fashion. We can only--
and one of the ways of doing it is holding the international conference
in Moscow in 2003 and talking about the environment.
Thank you.
Strength of the Dollar
Q. Mr. President, I understand that currency issues were discussed
at the leaders' summit. I'm wondering, how did you explain the benefits
of a strong dollar, since you've already acknowledged that it hurts U.S.
exporters, and over here it's putting
[[Page 893]]
inflationary pressure on the ECB and stopping them from cutting interest
rates?
And President Putin, I'm just wondering, how does a strong dollar
affect your economy? Thank you.
President Bush. Well, let me reiterate what I said after my World
Bank speech. The dollar needs to float in the marketplace, and that the
dollar--if the market is allowed to function, the dollar will be at an
appropriate level. And there are both, obviously, there are some that
want us to artificially--the dollar in our country, and that's not the
role, in my judgment, of the country. The market ought to do that, not
the Nation.
And so I continued to assure my friends and allies that we will let
the market adjust. I also assured them that we were taking the steps
necessary within our country to strengthen our economy.
I was able to herald the fact that the first rebate checks made it
into the mail, and I heralded it from a remote location, here in Genoa.
And the reason I bring that up is that many of the world leaders are
deeply concerned about the slowdown of the U.S. economy and its effect
not only on the dollar but also the effect on trade. And I assured them
that from a fiscal perspective: One, we're going to hold the line on
spending, that we had a budget, and I expect Congress to meet the
budget; secondly, that we did reduce taxes substantially and the first
wave of tax relief was in the mail; and thirdly, that our Fed,
independent of the Government, was making the monetary decisions. And I
think people were pleased to hear that we're working hard to revitalize
our economy.
President Putin. The United States are the main trade and economic
partner for Russia. And this is the main investor in Russia, of all the
investors, and one of the main economic and trade partners. So the
stability of the U.S. economy substantially affects our economic
situation.
As you know, over the last year in Russia we've noticed certain
positive trends, and there is no doubt in our minds that we're
interested in the stability of the U.S. economy as a whole and their
currency. The dollar for us is the most important--the main form of
payment in most of our operations.
Thank you.
Situation in the Balkans and the Middle East
Q. Which regional conflicts, in your estimation, are the greatest
threat to international security? What were the results when you
discussed these issues at the G-8? And what jointly could U.S. and
Russia do in this arena?
President Putin. Well, of course, these are the Balkans and the
Middle East, above all. I have to say that I'm satisfied by the nature
of the results of this discussion. But it seems to me that this time we
heard each other--heard each other much more, much better, understand
each positions much better in all these conflict areas.
And what's important--I don't know if my colleague will agree with
me, but I get the feeling that trust in each other, within the framework
of trying to settle these issues, is beginning to arrive. This is very
important foundation, trust. So we're going to continue coordinating our
efforts both in the Balkans and the Middle East, taking into account the
interests of all the parties that are drawn into this conflict.
And on the way toward coordinating our efforts, we have to work out
unified approaches. And this--here lies the success. This is very
important. Because if we create some kind of cracks or fissures through
which you can have leakage of certain extremist forces, it's going to
wreck the whole process. So here, getting together, drawing together,
here was very positive and a positive nature.
Thank you.
U.S. Global Warming Proposal
Q. Thank you, sir. Mr. President, President Chirac and Prime
Minister Chretien
[[Page 894]]
both say that you promised to have a global warming package ready for
the Marrakech meeting in September. Your staff says that that's not
quite true. Who is right, sir? What exactly did you tell the leaders?
President Bush. Well, given the room temperature here, I'm not
surprised you brought up the subject of warming. [Laughter] So I'll try
to keep my answer short, for the benefit of all, particularly those of
us who must do something in Rome.
Here's what I said: I said my administration has had a full-scale
review of the climate issue; that we're in the process of developing a
strategy as quickly as we possibly can and one that we look forward to
sharing with our friends and allies, a strategy that begins with the
notion that we want to reduce greenhouse gases in America, a strategy
also that takes a realistic look at how best to do so, a look based upon
science and a look with the notion that we can have economic growth and
sound environmental policy.
I made it clear to our friends and allies that the methodology of
the current protocol is one that, if implemented, would severely affect
economic growth in America, and that I believe that it makes sense for
those who trade with us to make sure that our environmental policy is
one that continues to stimulate economic activity so that trade means
something between nations.
The spirit of our dialog was very positive. I guess you could say
that I broke the ice during my last trip to Europe, so people understood
exactly where I was coming from. There should be no doubt in their mind
about our position, that we share the goal, but we believe that--
strongly believe that we need to find a methodology of achieving the
goal that won't wreck the U.S. economy.
And we're making progress on that. I'm very confident that the
leaders appreciated my straightforwardness the last time I came to
Europe and my willingness to continue to dialog on this very important
issue.
We have a representative at the Bonn summit. I saw her on TV the
other day; she made the case very clearly--Paula made the case very clearly about what our position is. And
the Europeans are interested in the strategy that we're going to adopt.
And when it's formulated, I will present it to them, and I look forward
to doing that. And they're going to find out that when I say we're
interested in reducing greenhouse gases that we mean it. They're also
going to be pleased to hear that it's going to be in such a way that
won't damage their largest trading partner, and so will the American
people, who want to make sure that there's work and jobs available.
With that, I want to, again, thank my friend. I look forward to
future dialog. Thank you all very much for your questions. And again, we
thank the good people of Italy for their kind hospitality.
President Putin. Thank you very much.
Note: The President's news conference began at 2:52 p.m. at the
Palazzo Doria Spinola. In his remarks, he referred to Paula J.
Dobriansky, Under Secretary of State for Global Affairs. A reporter
referred to Prime Minister Jean Chretien of Canada. President Putin
referred to President Jacques Chirac of France; MIRV, the Multiple
Independent Reentry Vehicle; and ECB, the European Central Bank.
President Putin spoke in Russian, and his remarks were translated by an
interpreter. A portion of this news conference could not be verified
because the tape was incomplete.