    [Public Papers of the Presidents of the United States: George W. Bush (2002, Book II)]
    [July 17, 2002]
    [Pages 1253-1261]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's News Conference With President Aleksander Kwasniewski of
    Poland
    July 17, 2002

        President Bush. It's an honor to welcome my friend the President of
    Poland to the White House. Mr. President, welcome.
        President Kwasniewski. Thank you very much.
        President Bush. Poland is a close friend and a good ally and an
    influential nation in the center of Europe. Poland has influence across
    Europe. America and Poland see the world in similar terms. We both
    understand the importance of defeating the forces of global terror, and
    America appreciates all that Poland is contributing to this great
    struggle.
        Our nations also understand the importance of building a better
    world beyond terror, one where prosperity replaces poverty and democracy
    and tolerance replace dictatorship and hatred. Poland and the United
    States are part of the great alliance of liberty, and we're working to
    spread the hope of freedom and prosperity across the globe.
        We had good talks this morning, and I want to highlight two
    initiatives we agreed on. First, we agreed to expand cooperation between
    our militaries. Both Poland and the United States are seeking to
    transform our Armed Forces and develop new capabilities. We need to meet
    the new threats such as terrorism and weapons of mass destruction. By
    sharing ideas and expertise, our militaries can help each other reach
    out--reach our transformation goals faster and improve our ability to
    work together. We hope this initiative will be a model for similar
    efforts with other NATO Allies.
        Second, our Governments agree to cooperate more closely to expand
    our economic ties. The Polish-American trade and investment relationship
    is important to both countries, and it's particularly important to
    creating jobs and high-tech growth opportunities in Poland. We will work
    to resolve some company-specific issues and also improve Poland's
    investment climate.
        These two initiatives will help build our strong working
    relationship.
        Tomorrow the President and I look forward to traveling to Troy,
    Michigan. I believe you have to go beyond Washington to truly capture
    the energy and diversity of our country. Mr. President, I think you'll
    like the trip. Troy is just one of countless communities across our
    Nation that has been enormously enriched by the contributions and values
    of Polish Americans. It will be a great honor for me to travel to such a
    community with the President of a free and independent Poland.
        Mr. President.
        President Kwasniewski. Thank you very much. Ladies and gentlemen,
    Mr. President, let me once again emphasize how pleased I am to stand
    here on the hospitable land, the country that is so close

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    to the Polish people, where millions of people live here of Polish
    extraction. I'm coming as a President of the Republic of Poland to the
    United States from the country which may set an example of success for
    others. And we know that this success is due to the support of our
    American friends.
        Today I am here as the President of democratic, developing Poland,
    Poland that is important in its region and whose voice is very
    significant, both in Europe and worldwide. I am here as President of the
    country which enjoys strategic partnership with the United States and
    friendship which is hundreds of years long and well tested, as well as
    enjoys perspectives that we have discussed with President George Walker
    Bush for a long time today.
        During our conversations, we have discussed combating terrorism that
    has to be brought to the final end. And Poland has been contributing to
    this particular combat. And we're sure that under the leadership of the
    United States, we could eliminate this particular threat from the world
    of the 21st century, so that we could build a future on the basis of the
    dialog, the protection of human rights, and mutual tolerance.
        Poland, with its soldiers in Afghanistan, is present in NATO, and
    Poland is active in exchange of information of intelligence and special
    units. We are ready to develop our cooperation along these lines.
        We have spoken about NATO. Poland is one of the new members, and we
    are convinced that the new summit in Prague will be the day on which new
    countries will be invited to become members of NATO who have met the
    requirements. Lithuania, Estonia, Latvia, our friends from Slovakia, and
    our close partners from Bulgaria and Romania and Slovenia will be
    welcomed there. We want a strong NATO. We want NATO to be ready to
    ensure security in Europe as well as in the Euro-Atlantic theater and a
    NATO that is going to be ready to respond to threats where the basic
    values of life and ethnic cleansing or acts of terror are taking place.
        I've presented to President George Walker Bush an initiative that I
    had presented a few days ago in Riga, to develop cooperation with
    countries which are in NATO, which will be in NATO, and with those ones
    which are going to be outside of NATO--I'm thinking here of the Balkan
    states. And I rejoice in the fact that the initiative of cooperation has
    been accepted as interesting by the United States, and as deserving
    further development.
        We have also spoken of Europe, and Poland wants to become a member
    state of the European Union. And we are sure that at the beginning of
    2004 we are going to become a member state, and we think that our future
    should be built with very close cooperation with the United States and
    Europe. And we want Poland to contribute, with its potential to global
    security and to building peace and mutual trust.
        On bilateral issues, we have emphasized that we're closing a
    particular chapter of transformations that have been taking place in
    Poland and in countries of Central and Eastern Europe. Today, we can say
    that our partnership has matured, that we're opening a new chapter where
    we're going to be treated mutually as fully fledged partners ready to
    take actions, both current actions as well as those that are going to
    take place in the future.
        I am convinced that the United States may draw on the experiences
    that Poland has gained in its transformation. We are ready to share
    these transformation experiences with other countries. I am also
    convinced that we're going to serve very well the military cooperation,
    especially in the areas of training, equipment, and the cooperation of
    special units with the particular military forces. And transformation is
    Poland's specific experience, as I want to emphasize again.
        I would also like to say that it's very significant that we have
    been creating a very positive climate for European investments.
    Americans have so far made an investment of $8 billion U.S., and we want

    [[Page 1255]]

    the climate for further investments to be very good. We would hope that
    new American companies will be opening their new headquarters in Poland,
    making it possible for them to operate vis-a-vis other states of the
    region.
        Let me also emphasize that since the very first moment in
    Washington, DC, we have been feeling the atmosphere of extreme
    wishfulness, kindness, and hospitable that I wish to extend my words of
    gratitude now in this context to President Bush and Mrs. Laura Bush.
    We're not only guests here, as we feel, but we're also friends that are
    coming from Poland for a visit to the United States.
        I'm convinced, too, that this visit will encourage further contacts
    and to develop enough contacts at all levels concerning not only
    politicians and elites but also citizens of the two countries,
    nongovernmental organizations and various institutions, social
    institutions. We want very much the Polish-American relations to get the
    new momentum. And free of the challenges that we have had in the recent
    decades, they could become the greatest contribution to the world, to
    Europe, and to Poland and the United States.
        And thank you for your attention.
        President Bush. We'll answer some questions. We'll alternate between
    the American press and the Polish press, three apiece.

    Corporate Responsibility/National Economy

        Q. Mr. President, even while you're calling for transparency in
    corporate America, you refuse to ask the SEC to turn over documents from
    its investigation into Harken Energy Corporation, your old company. And
    the Vice President has answered few questions about his role at
    Halliburton, his old company, which is now under investigation by the
    SEC. Why not just clear the air, ask the SEC to release those documents,
    and ask the Vice President to talk about Halliburton in a public forum?
        President Bush. Well, first, the Vice President--I've got great
    confidence in the Vice President, doing a heck
    of a good job. When I picked him, I knew he was a fine business leader
    and a fine, experienced man. And he's doing a great job. That matter
    will take--run its course, the Halliburton investigation, and the facts
    will come out at some point in time.
        Secondly, as to a look at Harken, the SEC, as a result of Freedom of
    Information requests, has released documents, and the key document said
    there is no case. It was fully investigated by career investigators.
    Some of you, I think, have talked to the head career
    investigator, and he's made it clear
    there was no case.
        The key thing for the American people is to realize that the
    fundamentals for economic vitality and growth are there, low interest
    rates, good monetary policy, productivity increases, economic vitality,
    and growth in the first quarter and that, as Chairman
    Greenspan said yesterday, that we've got to
    change from a culture of greed to a culture of responsibility. And I
    believe that's going to happen.
        Congress is working on some legislation. I hope they get it to my
    desk before they go home. I think it's important to send a signal to the
    American people that reforms have been enacted, laws will be upheld. But
    as I said the other day in Alabama, I've got--I'm an optimist about the
    future of this economy. I think that the ingredients for growth are in
    place, and that's important to our friends from Poland because, as he
    mentioned, we invest and we trade and the stronger our economy is, the
    more likely it is we'll have investment and trade together.
        President Kwasniewski. Now it's time for Polish journalists. I
    invite--Polish TV.

    [[Page 1256]]

    Poland's Role in the War on Terrorism

        Q. Polish public television, TVP. The question to both of you.
    Regarding the future of the anti-terrorist coalition and possible next
    phase of the war against terrorism, do you expect an increase of
    Poland's involvement? And do you think that Poland is ready to meet the
    expectations?
        President Bush. Well, first, I've been very impressed by Poland's
    troops. And we've got confidence in the Polish military. And we want to
    continue to train together. Particularly, our special forces need to
    work together, because the ability to succeed in the war--the new war of
    the 21st century means that we have to move quickly and move in a way
    that is effective and sometimes lethal.
        It's interesting you said the ``next phase of the war against
    terror.'' Almost every day is a new phase, in some ways, because we're
    reminding different countries which may be susceptible to Al Qaida that
    you're either with us or against us. And so we're constantly working on
    bolstering confidence amongst some nations which may sometimes forget
    that either you're with us or you're with the terrorists. That's kind of
    a--that's a phase, I guess you could say. Phase one was Afghanistan.
    Phase two is to make sure that other countries don't become places for
    training or places where the Al Qaida think they can hide.
        And we spent a lot of time on that here. I talked to Aleksander a
    lot about that today. The Polish Government has been very strong about
    working with us. The other--I also told him, of course, that we'd stay
    in close consultation, and we will.
        President Kwasniewski. I would just constrain myself to say that we
    have been part of the coalition from the very beginning, to the
    potential that reflects Poland's possibility and capability, such as our
    station in Bagram, and there is a Polish logistics unit, and they're
    right there. Our intelligence forces have been cooperating very closely,
    and we know that the commitment on the part of the Republic of Poland
    will be growing with the needs that are going to be growing.
        We have discussed with President George Walker Bush on how to
    modernize the Polish Armed Forces so that they could meet the challenges
    of the war against terrorism. And then Secretary Rumsfeld and Minister
    Szmajdzinski talked about talks, and they will be continued. And we hope
    that the effect will be that the Polish Armed Forces will be transformed
    in such a way so that, as a very serious and mature partner, they would
    be able to respond in unison with other armed forces.
        Poland is a member of the anti-terrorist coalition and has been very
    closely cooperating with the United States. And we want to reconfirm our
    readiness to continue this combat.

    Reform of the Palestinian Authority/Vice President Cheney

        Q. Mr. President, do you agree with your Secretary of State's
    willingness to consider working with a Palestinian Government that has
    Yasser Arafat as a figurehead leader, despite your call in June for a
    new and different leadership? And if I may follow up on Ron's [Ron
    Fournier, Associated Press] question----
        President Bush. You get one question. [Laughter]
        Q. If I could follow on Ron's, are you confident the SEC will find
    that Vice President Cheney did nothing wrong while at Halliburton?
        President Kwasniewski. His question was----
        President Bush. It happens worldwide.
        Yes, I am, to answer your second question.
        And first, I am confident as well that we need to put institutions
    in place so that a peaceful Palestinian state can emerge. And that ought
    to be the primary focus. The reform of the Palestinian state is a
    crucial element to achieving the confidence necessary amongst all
    parties so that we

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    can eventually achieve the vision of two states living side by side in
    peace. That's really important.
        The issue is much bigger than a person, as far as I'm concerned. I
    made it clear, I thought. The person you mentioned, Mr. Arafat, has failed to deliver. I still feel that way. And I
    know the Palestinian people will be better served by new leadership.
        And so we are--but my focus of my administration is to work with
    leaders from around the world, some of whom were in New York yesterday,
    to work to make sure there's a new constitution which divides power, so
    that one person doesn't get to decide the fate of a group of people who
    have suffered mightily; that there are security arrangements in place,
    so that they serve to make the area more secure, as opposed to security
    forces all existing--all of which exist to keep a person in power;
    reforms of financial institutions to make sure there's full
    transparency, to make sure that the money that we spend on humanitarian
    aid ends up helping Palestinian people, not a few leaders.
        Those institutional changes, Randy [Randy Mikkelsen, Reuters], are
    essential for the evolution of a state. It's essential that those
    institutions are developed so that the people of Palestine get helped.
    That's essential.
        And I do believe we're making progress to this end. It is a--this is
    an issue much bigger than a single person. Mr. Arafat would like the whole issue to be about him. That's the
    way it's been in the past. Except when you analyze his record, he has
    failed the Palestinian people. He just has, and that's reality.
        Q. [Inaudible]
        President Bush. You only get--that's your third, second followup.
    [Laughter] Unbelievably aggressive today. [Laughter]
        President Kwasniewski. Mr. President, now is Polish turn.
        President Bush. You're in good standing with your colleagues for
    that. Break some new ground.
        President Kwasniewski. It's a press conference, not interview.
    [Laughter]
        President Bush. Yes.
        Q. Polish public radio. Mr. President, this is a question addressed
    to both Presidents.
        President Bush. An old Fournier trick.

    Polish-U.S. Relations/War on Terrorism

        Q. There are some differences between Europe and the United States.
    Europe seems to be more eager to deal with economy and political sources
    of terrorism. United States seems to be more determined to apply
    military solutions. European Union and the United States differ in some
    important trade issues. What is the differences present in your today
    conversation? Poland is going to be a member of the European Union.
    Might this membership complicate relations in between our two countries?
        President Bush. No. That's an easy one. [Laughter] No, it won't. Let
    me make it clear to you, make sure--if I could kind of change one of
    your premises. We use military power, no question about it, and we'll
    continue to do it, to hunt these killers down, one by one. And that's
    all they are, is killers, coldblooded killers.
        We also understand that in order to make it hard for them to attack
    the United States again, or any of our friends, that we must disrupt
    their finances. We spend a lot of time on working with our friends to
    disrupt finances. And so we have a multifaceted approach to the war on
    terror. It's important for you to understand that. We don't necessarily
    place one aspect on the war against terror as more important than the
    other.
        In terms of the--listen, we've got great friends in Europe. Poland
    is a great friend, and the United States fully understands that we must
    cooperate together to achieve victory in the war against terror. That
    means intelligence sharing and working cooperatively on finance, making
    sure our militaries cooperate together. NATO--a

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    useful role for NATO, the new role for NATO, is going to be to defend
    Europe against terrorist activity. And therefore, NATO needs to change
    so that it can do a more effective job of defeating the enemy. Russia is
    not the enemy. Russia is--you know, the idea of Russian tanks storming
    across Europe are no longer the problem. And therefore, cooperation on
    chasing down killers, one by one, even becomes more focused and more
    important in many ways. And that's the nature of our relationship.
        So I welcome Poland going into the EU, if that's what the President
    and the country think is best.
        President Kwasniewski. I wish to say that we have discussed the
    subject, and it is true to say that in Europe, Poland has been
    criticized as a state that has extremely been--has been very pro-
    American. And for that reason--I haven't witnessed any criticism or
    heard any criticism, for that reason, here in America.
        But the issue of whether Europe or America, relations, et cetera,
    reminds me of a question that is very often addressed by a child: Is Mom
    or Dad better? From the educational point of view, it's a false
    question, because under these circumstances that we are now in, we're
    creating a family based on the same fundamental values or based on
    similar or very similar objectives, and also based on the historical
    heritage for Europe and the United States are quite similar and very
    penetrating.
        It seems to me that outside of current politics, or different
    accents in politics, certainly we could not talk, and we should not
    talk, about any conflicts of opinions. Poland wants to become a member
    state of the European Union, and that's how we see our political and
    economic opportunity. And we hope it's going to be true the first of
    January 2004. And I want to assure that Poland, as a member state of the
    European Union, will be doing all it can and will be able to do for the
    cooperation between the United States and Poland and Europe to be even
    better.
        I would like to refer to what President George Walker Bush said in
    Warsaw last year in June. ``We have to be building a spirit of Europe,''
    he said, ``whole and free,'' a whole and free Europe. And I believe that
    this is a good reply to this question, a good answer on how we should
    work together and how a Europe that is going to be in its whole entirety
    based on the same values to be the traditional and very close ally and
    partner for the United States.
        I am convinced that Poland's membership in the European Union will
    not only be a problem in relations between Poland and the United States,
    but because we are going to get new incentives for development, this
    type of cooperation between Poland and the United States will be greatly
    welcomed also by the United States.

    Financing Homeland Security

        Q. Thank you, Mr. President. The strategy that you announced
    yesterday indicated that we're already spending about $100 billion on
    homeland security. What have you determined about the costs going
    forward? How much is it going to cost us, and how much of that total do
    you see coming from State and local governments, on the one hand, and
    from the private sector, on the other?
        President Bush. It's going to be hard to quantify how much the
    private sector spends. Let's just say they need to spend enough to work
    in a cooperative way, and many private sector companies realize it's in
    their interests to do so.
        The key thing about the national strategy is that we have the
    ability to have a Department of Homeland Security that's able to effect
    a national strategy by setting priority. And the priority is to protect
    our homeland.
        Mr. President, we've got agencies who've got many different
    functions, and we want the primary function of agencies that have
    anything to do with homeland security to

    [[Page 1259]]

    be protecting America, because we still feel like we're under attack.
        The key cost issue is the cost of transition toward this new
    Department of Homeland Security. And we're confident that if we're given
    the management tools necessary, we can effect that in a cost-effective
    way, that transition in a cost-effective way. That's why I spent some
    time talking to Members of Congress yesterday about giving us some
    management flexibility, flexibility in personnel decisions, flexibility
    in reorganization decisions. I think that's going to be an important
    part of making sure that the cost of transition is a realistic cost. As
    a matter of fact, we think we can save money as a result of overlap.
        In terms of how much it costs down the road, that's going to depend
    upon how effective we are at defeating the enemy. The best homeland
    security is to hunt the enemy down one by one and bring them to justice.
    That's the best way to secure the homeland, and the more effective we
    are at that, the more cost effective it will be at home. And so the
    budget we submitted is one we think is important for this year, and
    we'll reassess on an annual basis.
        Q. As you know, Mr. President, the State and local governments are
    saying they're at the end of their rope financially, at the moment,
    because of the economic downturn. Do you see a substantial burden on
    them----
        President Bush. Well, we'll just have to work--help them work
    through their budgets. But remember, the--we'll just have to see.
    They're concerned about budgets in a lot of areas, Medicaid, different
    areas. And the--I believe this economy is going to come back, and I
    think it's going to help improve their financial picture when it does.

    Poland's Role in Europe/Russia-U.S. Relations

        Q. TVN Polish Network. A question for both of you. Would you please
    expand on the subject of the specific role that Poland is going to play
    in Central and Eastern Central Europe, especially within the context of
    new enhanced relations between the United States and Russia? What is
    Poland going to do?
        President Bush. Well, that's a very good question. First of all, the
    President talked about the Riga initiative that he described. It's a--
    and it's something that caught our imagination and caught our attention.
    We thought it was a very interesting set of ideas, and we want to
    explore that with him further, which would really put Poland in a unique
    role of fostering continued relations with countries which may or may
    not be admitted into NATO, for example.
        In terms of the Russia-U.S. relationship, it's a strong
    relationship. But the--and it's a relationship which is important
    because it helps Russia think Westward. And Poland can be a part of
    that, of course. The President has had great visits with President
    Putin, and he's talked about the benefits of
    thinking West.
        And the other important part, the most immediate effect, is when
    Russia looks West, she sees Poland and realizes there is no threat from
    Poland. Poland is a peaceful neighbor. Poland's at peace with all its
    neighbors. And that is a very important contribution to the stability of
    our relationship.
        If we were--as I was very aggressive about, in talking about NATO
    expansion, if Russia thought that the neighborhood was unsettled, it
    might create some issues. But Poland has provided a great source of
    stability in the neighborhood, and therefore Russia feels less
    threatened. And I think that's an important nuance, as we say, in
    foreign policy. I think that's the word, isn't it? ``Nuance''? Yes.
    [Laughter]
        Anyway, but it's been a vital contribution, Mr. President, and I
    thank you for that.
        Making sure you're awake.
        President Kwasniewski. Thank you. First, I also wish to say that
    some journalists in

    [[Page 1260]]

    Poland have been writing that good relations between the United States
    of America and Russia mean that the role of such states as Poland, or
    such states that joined NATO from Central Europe, has been decreasing or
    on a decline. I think that this is not a very wise thesis or assumption.
        But let me emphasize that especially the states of Central and
    Eastern Europe and Russia want Russia to become a fully democratic
    state, a state exercising a very peaceful attitude to all other nations.
    So good American-Russian relations are a guarantee for us, and President
    George Walker Bush has just mentioned that, that there is no threat from
    the Russian Federation and there will be no threat from the Russian
    Federation.
        I want to be in the shade of Russia and not afraid, as opposed to
    being a country that is right upfront and is afraid of Russia. I think
    it's the very vital interest of Poland and other states for Russia-the
    United States relations to be very good. And we are very happy with the
    Russia-NATO partnership. This is a new quality of ensuring security in
    the world and especially in our region.
        Now, secondly, we are extremely happy that the American position is
    very, very pro-enlargement of NATO. I think politically this is a very
    significant decision that will result in the further development,
    broadening of the security zone in Europe. We are also very happy that
    there is a support for the Riga initiative, because it means that
    countries which are not going to become members of NATO will also--could
    be also--can be also benefiting from the outcome and from the results of
    this success, so they--we can also be supporting democracies, emerging
    democracies in Bosnia-Herzegovina and Croatia, in Macedonia, et cetera
    and et cetera, something that has been the world's problem. And I think
    the Balkan states are going to be an area of development, economic
    development and development of security.
        I also want to assure you, and President Bush knows about it, that
    Poland has been functioning as an exporter of stability. We have been a
    unique state because, in the last 10 years, Poland has not changed its
    border by a single inch, and all our neighbors have changed. None of our
    neighbors have been neighbors of Poland 10 years ago, neither the east--
    Eastern Germany or the German Democratic Republic, neither the Soviet
    Union nor any other country. So this is a piece of evidence that you can
    export stability. You can be a pretty important factor contributing to
    security in Europe, but also in the Euro-Atlantic dimension.
        And finally, I'd like to say that we talked about the cooperation
    with the Ukraine. Let me use this opportunity to say that Ukraine should
    play an even more important role in Europe and in the region, and I am
    convinced that we should be supporting and favoring all efforts aimed at
    furthering development and cooperation with Ukraine and cooperation with
    the United States. And I am convinced that, strategically looking at the
    future, we should not be in the position not to see the 50-million state
    located right in the heart of the European Continent.
        So, speaking in brief words, we have made a review of politics in
    the area, and perspectives are good. But I think they should be utilized
    in the best possible ways. And in that sense, the Polish-American
    cooperation is very, very important.
        Thank you very much.

    Note: The President's news conference began at 12:03 p.m. in the East
    Room at the White House. President Kwasniewski spoke in Polish, and his
    remarks were translated by an interpreter. In his remarks, President
    Bush referred to William R. McLucas, former Director, Division of
    Enforcement, Securities and Exchange Commission; Chairman Yasser Arafat
    of the Palestinian Authority; and President Vladimir Putin of Russia.
    President Kwasniewski referred to Minister

    [[Page 1261]]

    of National Defense Jerzy Szmajdzinski of Poland.