    [Public Papers of the Presidents of the United States: George W. Bush (2002, Book I)]
    [March 23, 2002]
    [Pages 484-491]
    [From the U.S. Government Publishing Office www.gpo.gov]

     The President's News Conference With President Alejandro Toledo of Peru in Lima, Peru
     March 23, 2002

         President Toledo.  This is an historic visit made by a friend
    representing a country with which we have had a historical relationship.
    It is not a merely diplomatic visit; it is an official working visit.
    And we have touched on substantive issues which range from the open
    struggle against poverty, a war without quarter against terrorism and
    drug trafficking. I repeat, a war with no ambiguities whatsoever,
    against terrorism and drug trafficking. We've touched on issues of
    trade, education, even the Peace Corps.
        But my friend George Bush, this Peru is a country that welcomes you
    with open arms. We are renewing our friendship, and this is the
    beginning of a new era in the relationship between Peru and the United
    States. And I'm extremely happy that the two of us are able to begin
    this relationship.
         I know you seem younger than I am, but we are both 55 years old,
    and we have a long way ahead of us to work together. I know that we both
    have the energy and the stubbornness, particularly with regard to the
    issue of terrorism and drug trafficking, because your country, just like
    mine, loves peace. It appreciates life. And we are united on this. And
    as of today, we have a strategic alliance of hope for the future.
         My friend, welcome to my country.
         President Bush.  Gracias, Senor Presidente. It is an honor for me
    to be the first sitting President of the United States to visit Peru. I
    want to thank you for the invitation. It's a greater honor for Laura and
    me to come here as guests of a leader who symbolizes Peru's
    revitalization.
         President Toledo and I have now met three times. At each meeting,
    I've been impressed by his commitment to democracy and his determination
    to improve the lives of the people of Peru. Peru is on the path toward
    greater freedom and greater prosperity, and America will be the partner
    in this progress, Mr. President.
         Earlier today our two Governments signed an agreement that will
    reintroduce the Peace Corps to Peru, after an absence of nearly 30
    years. The first volunteers will arrive in August, a symbol of the
    stronger ties between our people and the stronger relationship between
    our nations.

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         This relationship is based on common values and common interests.
    Our nations understand that political and economic progress depends on
    security, and that security is impossible in a world with terrorists.
    Peruvians have been reminded again this week of the terrible human toll
    of terror. On behalf of the people of the United States, I express our
    deep sympathy for the victims of the recent bombing and our deep
    sympathy for their loved ones.
         President Toledo and I share a common perspective on terrorism: We
    must stop it. Since September the 11th, Peru has taken the lead in
    rallying our hemisphere to take strong action against this common
    threat. And I want to thank the President for his leadership and his
    strong support.
         Our nations understand that freedom is only as strong as the
    institutions protecting it. The United States is actively supporting the
    President's efforts to strengthen Peru's democratic foundations. And we
    will continue to support the work of Peru's Truth and Reconciliation
    Commission, which is helping correct the abuses of the past and set the
    course for a better future.
         President Toledo and I both understand the importance of providing
    economic opportunity to all our citizens as a hopeful alternative to the
    drug trade. We discussed ways to make the assistance that the United
    States provides under the Andean Regional Initiative more effective. And
    I emphasized to the President my commitment to renew and extend the
    Andean Trade Preferences Act. The United States House of Representatives
    has moved this legislation. It is stuck in the Senate, and I urge the
    Senate to act.
         President Toledo and I have agreed to renew discussions on a
    bilateral investment treaty and to complete a debt-for-nature agreement
    to help Peru reduce debt payments while it protects its biodiversity. I
    also informed the President that Secretary of Commerce Don Evans will lead a trade mission to Peru and the Andean
    region later this year. By building these ties of commerce, both our
    nations create more jobs, more investment, and more benefits for workers
    and consumers.
         President Toledo and I believe that education is the key to
    participation in the global economy. The President's own path in life is
    a lesson in how education opens up doors to opportunity. He is
    passionate on the subject. I love his passion, and I appreciate his
    commitment. And I'm pleased to announce that our country will help
    establish an Andean Center of Excellence for Teacher Training, with a
    base here in Peru. The center will support President Toledo's goal of
    quality schools with quality teachers, that give more Peruvians the
    literacy and learning they need to succeed.
         I've also directed the U.S. Commerce Department and the U.S. Trade
    and Development Agency to establish an Andean E-Business Fellowship
    Program, to give more high-tech professionals from this region the
    chance to learn more about information technology.
         President Toledo and I have a strong relationship. I'm inspired by
    his life; I'm inspired by his story; I'm inspired by his leadership. I'm
    impressed by Peru's progress, and I'm very confident of Peru's future.
         Thank you, sir.
         Q. Mr. President----
         President Bush. Which one? [Laughter]

     Counterterrorism Efforts

         Q.  You, sir. Given increasing evidence that the FARC is now
    operating in Peru, will you be willing to provide President Toledo extra
    assistance in fighting the war against terrorism here, should he ask for
    it? And are you concerned that what was once a regional problem in
    Colombia, or something restricted to Colombia, is now spreading across
    Colombia's borders and threatening its neighbors?
         President Bush.  We discussed the neighborhood at length today.
    President Toledo told me that he is--now that he's done

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    a very good job, or the country's done a good job, of making sure that
    relations with neighbors north and south are peaceful, that he is moving
    troops and making decisions to prevent terrorists from coming into his
    country from Colombia. And we will help him in this effort. That's part
    of the reason why we're here--is to support our mutual desire to fight
    terror and to help this good democracy thrive.
         Later on today we'll be talking with Presidents from--and one Vice
    President--from the Andean nations. And we'll be discussing our common
    desire to prevent terrorist groups like the FARC from holding people and
    nations hostage. And I'm absolutely convinced, having talked to the
    President three times, that he will do everything in his power to rout
    out terror, not let it take hold, and preserve the institutions that
    make Peru a beacon for democracy.
         Q. [Inaudible]
         President Toledo.  No, the evidence that we have is--I repeat, the
    evidence that we have indicates that there is no transfer of the FARC
    into Peru. However, we are adopting every measure possible. The Minister
    of Defense was at the border very recently. We took our bases that were
    along the border with Ecuador--where, after signing the peace agreement,
    there is no need for their presence--we removed them, as a precautionary
    measure, over to the border with Colombia.
         As President Bush just indicated, this is a joint task. What
    happens to Colombia affects us, and vice versa. But here, too, we're
    partners. And I think that the issues that have to do with the Andean
    community are issues on which President Bush is extremely interested,
    and I'm sure that we will be working together on these. We are going to
    work together on this; I'm sure of that.

     Peru-U.S. Relations

         Q. President Bush, you granted an audience recently to my daily, El
    Comercio, at the White House, and you said in that interview that Peru,
    for the United States, is not only a friend but an ally. I'd like to ask
    you, beyond trade preferences and the commitment to struggle against
    drug trafficking, what will be the major elements in your administration
    that would highlight this different relationship you want to have with
    Peru? For example, would you open up an antechamber, so to speak, for
    Peru to come into a free trade agreement negotiation with the United
    States?
         And let me ask President Toledo, with regard to the issue of shared
    responsibility in the fight against drug trafficking, would you take on
    the commitment, before President Bush, to establish a control office
    that would monitor whatever the United States does not comply with?
         President Bush.  I listed quite a few things in my opening remarks
    about our relationship. I believe strongly that if we promote trade and
    when we promote trade, it will help workers on both sides of this issue.
    It will help Peruvian workers, help U.S. workers.
         The Andean Trade Preference Act is a cornerstone of good policy, as
    far as I'm concerned, and it's a cornerstone of good relations. We
    talked about a treaty on investment; that could be the beginning of a
    trade treaty. The President brought it up. He asked whether or not we
    would consider it. I said we'll take it back and discuss the issue when
    I get back to Washington, D.C.
         There's nothing more important than fostering good economic
    relations. I mean, the best way for people to get lifted out of poverty
    is a job. And the best way to encourage jobs is through trade. I mean,
    what we're beginning to realize in the world is, development aid is
    important, but development aid pales in comparison to the amount of
    capital that's generated through trade in the marketplace, in the
    private sector. And countries that open markets and countries that trade
    freely are countries where the people are more likely to be able to
    succeed.

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        And I would not discount the importance of our relationship when it
    comes to fighting terror. The world has called us to action. This is a
    new era. We're fighting a new kind of war, and we're strong allies in
    that war. And when we win, our peoples will be better off. You can't
    alleviate poverty if there's terror in your neighborhood. It's
    impossible to achieve what we want if terrorists run free.
         And so I think one of the best things we can do to lay the
    foundation for a better tomorrow is to be tough and firm and not yield
    to threat. And that's exactly the way the President feels, and I can
    assure you that's the way I feel.
         President Toledo.  I think that in the war against drug trafficking
    and terrorism, we are partners, not simply through conviction, my good
    friend, but because we, ourselves, have experienced it. We have
    experienced the effects of terrorism here for 20 years; the United
    States, on September 11th. And I have here my friend Colin Powell, with
    whom we have a very solid human relationship because, in this very
    palace, we were witnesses to the news of September 11th while we were
    having breakfast.
         On this issue, we are partners; I am stubborn. I am stubborn, and I
    believe it is not incompatible to respect the law and to be strong-
    handed with regard to the issue of terrorism and drug trafficking. I do
    know there's been a decision from the U.S. Government to increase
    support for the struggle against drug trafficking, and I appreciate that
    enormously. We still have a long road ahead to walk together in this
    struggle, but we will do it.
         And Mr. Journalist, I want to underscore something that was
    referred to by President Bush. Trade preferences is an issue on which
    President Bush has demonstrated--and I am a witness--his will for
    congressional approval in the United States. The separation of powers
    makes it impossible for Presidents to control congresses--just like I
    don't control mine. But that's the way democracy works.
         Nonetheless, we have gone beyond trade preferences--Andean trade
    preferences. I have asked of President Bush that he consider an
    initiative for trade, for bilateral trade and investment within the
    framework of the Andean community. And we are going to be talking to our
    colleagues in just a few minutes.
         I think it's important because trade is a synonym for work, and
    work is a way to deal with poverty. Through work, education, and health,
    we can eradicate poverty. We are partners on the issue of trade, on the
    issue of drug trafficking and terrorism, in the defense of democracy and
    of human rights, my friend--human rights.

     Peru-U.S. Drug Control Cooperation

         Q.  Mr. President, the Peruvians have expressed an urgent desire
    for the resumption of U.S. drug interdiction flights in Peruvian
    airspace. You told us yesterday in Monterrey that the issue was under
    rigorous review. My question to you, sir, is it your ultimate goal to
    see a resumption of those flights? And what preconditions would you put
    on those flights before authorizing resumption?
         And for President Toledo, if I could, sir, if you are to expect a
    maximum effort at a partnership with the United States to eradicate drug
    trafficking, why won't you make the same commitment to coca eradication
    as your neighbors Bolivia have? You've talked a lot about the problem
    being drug trafficking, but you have not made the same commitment on
    coca production, sir.
         President Bush. We are reviewing all avenues toward an effective
    policy of interdiction. As you know, we had a terrible situation where a
    young mom and her daughter lost their life; that caused us to step back
    to take a look at our policy at home and then to work with the Peruvian
    Government to figure out how best to be effective at interdicting drugs.
         And so the discussions are ongoing. And we want to make sure that
    when we work

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    with countries like Peru, that we achieve the common objective, which is
    to make it hard for those narcotraffickers to move through their
    airspace, across their land, or in oceans.
         I want to say something about--there's a lot of talk about
    interdiction, and there should be. And there's a lot of talk about
    battling the narcotraffickers here in the Andean area, and we will. But
    our country has an obligation as well, not only to provide support and
    help. The President mentioned that we have expanded the direct aid to
    Peru on this issue, which we have. We've tripled it, up to about $200
    million--about 195 million, I think it is. But the best thing that
    America needs to do is reduce demand for drugs. We've got to do a better
    job of convincing our own country to quit using them. As demand for
    drugs goes down, it will take the pressure off of our friends in Peru.
         So we've got a double obligation, it seems like to me: on the one
    hand, to provide help and aid that's effective and will work. And that's
    exactly what we spent a long time talking about, in all three of our
    meetings. But I want to remind our Peruvian friends that we've got to do
    a better job at home of convincing Americans to stop using drugs. And
    part of our drug initiative will be to focus on the demand side. Less
    demand for drugs will mean that the supply for drugs will be less
    urgent. And that will in turn help the region.
         President Toledo.  Look, my friend, let me deal with your question
    head on. In 1990, the number of hectares with coca cultivation was
    approximately 140,000 total. Today, we are down to 34,000 hectares,
    where we have coca cultivation. Enormous progress has been made.
         I know it's not enough. We have a long path ahead of us yet. And we
    have to do this together. I know that the drug traffickers have become
    more sophisticated over time; they have more high-tech capabilities. And
    now we, too, have to push forward in that direction.
         I want to be very open, and I apologize to my friend President Bush
    now. We are not fighting against drug trafficking in order to satisfy
    the United States or Europe. Drug trafficking, in partnership with
    terrorism, is an issue of national security. It's an issue of national
    security. On Wednesday they killed 9 people, 9 of our brothers and
    sisters, and there are 30 people wounded. I have publicly stated, and I
    want to repeat this: We are not going to let this stand.
         So let me respond to you. We have met a substantial reduction. We
    still have 34,000 hectares to go. But we are going to do this together.
         Final point. I think President Bush is extremely sincere--he's
    extremely sincere and honest when he recognizes that as long as there is
    a demand out there, there will be a supply. As long as there are
    consumers, there will be producers. And so, together, we need to work on
    reducing the number of consumers, cure them better, make them better.
    And we need to reduce the amount of hectares under cultivation.
         And, footnote here, it's also true that the statistics indicate
    that although levels are still low, there is an increase in the
    consumption of cocaine among youth in Peru. And that is also part of our
    concern, with regard to national security.

     U.S. Assistance to Peru

         Q.  President Bush, you are in a region now that's been devastated
    by terrorism and subversion and drug trafficking for over three decades.
    You're offering us the Peace Corps. I would ask you if you're willing,
    as President of the most powerful nation on Earth, to lead a Marshall
    plan for South America?
         President Bush.  I appreciate that. I think I said more than just
    the Peace Corps, if I'm not mistaken, in my opening comments. Obviously,
    our Nation is committed to this part of the world. I've come to Peru, as
    the first sitting President, to express our solidarity with Peru and the
    people, as well

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    as express my appreciation for a reformer who got elected who's willing
    to defend the institutions that make democracy go.
         I repeat, if you'd like me to--go through the litany of things I
    just said: the Andean Trade Preference Act; the bilateral action on
    investment; money for education; money to fight drugs. We've tripled the
    amount of money--I believe it's from $50 million up to $195 million
    available. And so I think our commitment is--I think our commitment
    speaks for itself. And I appreciate so very much the chance to come and
    explain it to the Peruvian people--that ours is more than just words;
    ours is deeds and action.

     Situation in the Middle East

         Q.  Good afternoon, President Bush. Buenas tardes, Senor
    Presidente. President Bush, many lawmakers in Congress are growing
    increasingly concerned about your policy in the Middle East, wondering
    if the very talk of potential high-level negotiations involving Vice
    President Cheney, specifically, with the Palestinian leader, Yasser
    Arafat, might not in fact send a signal that terrorism against Israeli
    civilians can achieve some limited political aims. I'd like to ask you,
    sir, why you're contemplating that, and why those who wonder if that is
    not the case are incorrect?
         President Bush.  Well, first of all, I think there's been no
    question that the United States has stood strong with Israel. And we've
    made it very clear to Mr. Arafat that he is
    not--he's not doing all he can do to fight off terror. I can't be any
    more clear than that. Vice President Cheney
    said, depending upon the Zinni mission and
    General Zinni's recommendation, he might go back, if and when Arafat
    performs.
         Surely those in the Congress you talk about appreciate the fact
    that the administration is engaged and sent General Zinni into the region. We laid out the Tenet plan, which is
    the way to bring some security to the region, which would then lead to
    the Mitchell plan. And we're doing everything in our power to get the
    parties into Tenet. And we'll continue working hard to get them to
    Tenet.
         Q. Even if the violence continues----
         President Bush.  If and when--if and when Mr. Arafat--if and when--
    --
         Q. [Inaudible]
         President Bush.  Excuse me. If and when Chairman Arafat performs, that's what we have said. General
    Zinni went to the Middle East; he's leading
    discussions. But people shouldn't mistake our desire to get into Tenet
    as anything more than a desire to get to peace. And we'll continue
    working to do so.
         And Prime Minister Sharon knows where the
    United States stands. We're strong allies with Israel. We have been ever
    since I've been the President, and we'll continue to be strong allies
    with Israel.

     U.S. Assistance to Peru

         Q.  Good afternoon to both Presidents. President Bush, just a few
    days ago I was able to ask you in Washington about leadership in the
    fight against poverty. And on this--aside from the issue of being 55 and
    the fact that you're wearing the same color ties--you are in agreement
    with President Alejandro Toledo, who also insists on fighting against
    poverty. But the fight against poverty presupposes--and this has been
    stated by Dr. Toledo--thinking of reducing arms in Latin America,
    because for every tank or F-16, we could buy a lot more schools. Mr.
    President, I'd like to know your views on this and the views of
    President Toledo with regard to this issue, the possibility of arms
    control in the South American part of the hemisphere. And the same
    question for President Toledo.
         President Bush.  We may be the same age, but el tiene pelo negro.
    [Laughter] Yo tengo pelo gris. [Laughter]
         I appreciate President Toledo's work to have a security arrangement
    in place in the neighborhood, amongst the countries bordering Peru, that
    will then allow him to reinvest in education. We talked about that.

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    And I think that is a strong commitment and a wise commitment.
         As far as my country's commitment goes, I gave a speech in
    Monterrey, Mexico, 2 days ago, where I committed our country to a 50
    percent increase in development aid. But I said, it's time for the world
    to stop looking at inputs and to focus on outputs and that the United
    States, developed nations, must do more financially. And we're leading
    the way.
         But we expect other nations to develop the habits that will lead to
    a better opportunity for their people: rule of law, a focus on
    education, and good health care. President Toledo understands that; he's
    been a leader in that effort. And I think what I said in Monterrey was
    very important, that unless we all focus on how programs benefit people
    directly, no matter what the efforts or strategy is, it's likely to lead
    to failure. But programs and policies that understand the worth of each
    human being, that each individual matters, are those programs which will
    be successful. And so our country will try to foster that. And this
    President has made that commitment, for which I am grateful.
         President Toledo.   Aside from the fact that President Bush has
    very good taste with regard to color in ties, he's also taller than I
    am. [Laughter]
         On this issue of military expenditure, we discussed it with him.
    And here I want to strike a difference between military expenses for
    armed conflicts between countries and military expenditures for defense
    against terrorism and drug trafficking, because these are two separate
    issues.
         I think that there is a major challenge in the world. In order to
    survive in this globalized and savagely competitive world we live in, we
    need to invest more in the minds of our people. Basically, what this
    means is investing more in nutrition, health, education, and justice for
    the poor. We won't be able to deal with the challenges of this
    globalized world unless we invest in the knowledge of our societies.
        The question immediately arises, and obviously so, in an economy
    that is growing, that is overcoming a recession, where do you get the
    money to invest in nutrition, health, and education? Well, we've made an
    appeal to countries at the bilateral level. And there the United States
    has played a very generous role, at the donors table in Madrid. And I
    want to publicly express my appreciation, Mr. President. There has been
    debt conversion, external bilateral debt swap, for social investment.
    And there we have been able to get a commitment of about $1 billion.
    This is one way to establish a financial space to invest in health,
    nutrition, and education.
         The other thing is that I believe it makes no sense in this world
    that as long as we have a country with 54 percent of Peruvians who live
    below the poverty line or 16 percent who live below the dire poverty
    line--when I was born, the very first minute of my life when I opened my
    eyes, I saw the face of dire poverty. I know what this means. That's why
    I am convinced that we can make an effort to reduce military spending,
    to reorient those resources towards investment in justice and education
    and health, because the defense of a country no longer depends on how
    many tanks or ships or aircraft we have. It's all about how strong our
    economy is, how educated our people are. And please excuse me for being
    so passionate on this subject, but there is absolutely no doubt on this.
    And the empirical evidence is very harsh with regard to the return on
    investment on education and health and nutrition for our people.
         And here, once again, we have another point of coincidence that
    leads us down the same path together. I conveyed something that's very
    close to my heart, with regard to the Huascaran education program, and I
    asked our friend to support us on this. And I will be going to New York,
    and I'm going to talk to Mr. Bill Gates to try to promote the Huascaran

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    project even more. But if we reduce military spending, we're going to
    have some financial leeway to reorient this money towards the poor, who
    want to overcome poverty, who want freedom. And we'll be able to deal
    with the challenges of the future even better.
         Ladies and gentlemen, thank you very much.

      Note:  The news conference began at 6 p.m. at the Presidential Palace.
    President Toledo spoke in Spanish, and his remarks were translated by an
    interpreter. In his remarks, President Bush referred to Veronica Bowers
    and her daughter, Charity, who were killed in the accidental shootdown
    of a U.S. missionary plane in Peru on April 20, 2001; Chairman Yasser
    Arafat of the Palestinian Authority; U.S. Special Envoy to the Middle
    East Gen. Anthony Zinni, USMC (Ret.); and Prime Minister Ariel Sharon of
    Israel. President Bush also referred to FARC, the Revolutionary Armed
    Forces of Colombia; the Tenet plan, the Israeli-Palestinian cease-fire
    and security plan of June 13, 2001, negotiated by Director of Central
    Intelligence George J. Tenet; and the Mitchell report, the Report of the
    Sharm el-Sheikh Fact-Finding Committee, issued April 30, 2001. President
    Toledo referred to Minister of Defense Aurelio Loret de Mola of Peru;
    and William H. ``Bill'' Gates, chairman and chief software architect,
    Microsoft Corp.