    [Public Papers of the Presidents of the United States: George W. Bush (2007, Book I)]
    [March 31, 2007]
    [Pages 364-372]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's News Conference With President Luiz Inacio Lula da
    Silva of Brazil at Camp David,
    Maryland
    March 31, 2007

        President Bush. Mr. President, welcome to Camp David. Laura and I are delighted you're here. This is a special spot
    for Laura and me, and it was my honor to welcome you to this part of
    America. You come as a friend; we welcome you as a friend; and our
    discussions were very friendly.
        We talked about a lot of areas of mutual concern. We talked about
    what I would call mutual opportunities. We talked about, of course,
    trade. Brazil and America trade a lot. Perhaps the most compelling part
    of the opportunity to work together is for the Doha round. It's in the
    U.S. interests that we complete the Doha round successfully. It is in--I
    think it's in Brazil's interests, at least that's the way the President
    has told me. I don't want to put words in his mouth. But it is in our
    interest to work together to make sure that we have a deal that treats
    Brazil fairly, the United States fairly, as well as other nations
    fairly.
        I strongly believe that the best way to help alleviate world poverty
    is through trade. And so we had yet another constructive dialog. We had
    a good dialog there in Sao Paulo, and here in Camp David we have as
    well.
        Interestingly enough, we announced the creation of a U.S.-Brazil CEO
    Forum. It's a opportunity for people in our respective countries to get
    to know each other better and to strengthen economic ties as well as
    social ties.
        We talked about biofuels. I can remember very well, Mr. President,
    going to the Petrobras plant. It was an amazing facility, and it was
    exciting for me to see the realities of your biofuels industry
    firsthand. I'm a big believer in alternative fuels. There's a whole new
    industry here in the United States beginning to spring up. And I told
    the President that not only are we committed domestically to promoting a
    alternative fuel industry; we're committed to working with Brazil. And
    that's why we support the President's initiative on the International
    Biofuels Forum, as well as the initiative that we talked about in Sao
    Paulo, and signed a memorandum of understanding, and that is to help
    nations in our own hemisphere realize the benefits of ethanol and
    biodiesel.
        I appreciate the President's very strong commitment to democracy. I
    also appreciate his very strong commitment to help nations, particularly
    on the continent of Africa. And one of the really exciting initiatives
    that we will work together on is an initiative to eradicate malaria in
    Sao Tome and Principe, two opportunities for Brazil and the United
    States to work together to improve somebody's life.
        There is no excuse for malaria to continuing to kill as many people
    as it does. Our great nations can work together to stop that death.
    There is a reasonable plan in place. It's a plan that I'm confident can
    achieve great success, and it makes a lot of sense for Brazil and the
    United States to work toward that plan.
        As I said in Sao Paulo, Mr. President, I appreciate very much your
    leadership on Haiti. I appreciate the fact that you've led the U.N.
    stabilization force. We want to, of course, make sure that your efforts
    to bring security are followed up by opportunity for the people of
    Haiti. We don't want your force just to be there to simply stabilize; we
    want your force to leave--be a part of a constructive future, which is
    precisely your vision. And we want to work with you very closely to
    achieve that end.
        We spent a lot of time talking about other parts of the world, and
    that's what you would expect when the United States and Brazil sit at
    the same table. Brazil is an influential nation, and it's an important

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    nation. And I really do appreciate so very much your sharing your
    strategic thoughts about not only our own neighborhood but other parts
    of the world.
        And so, Mr. President, it's with great pleasure that I welcome you
    here. I'm looking forward to giving you a tour of Camp David. We've been
    spending too much time doing business; now we need to do a little
    pleasure. And after this press conference, you and I will take a little
    tour, and then I'll feed you a meal, if you're hungry. [Laughter]
        Welcome.
        President Lula da Silva. I hope that it's not too much work.
    [Laughter] Your Excellency, Mr. George W. Bush, the President of the
    United States; Madam First Lady Laura Bush; Madam Secretary of State
    Condoleezza Rice; Ambassador Celso Amorim, and other ministers from
    Brazil; ladies and gentlemen; members of the Brazilian delegation and
    the U.S. delegation; newspaper representatives, press representatives:
    First of all, I would like to thank President Bush for the invitation.
    My visit to Camp David made it possible for us to cope with issues of
    global, regional, and bilateral interest.
        I believe that on--the 21st century will be marked by changes that
    we will have to do--to undertake and also for the improvement of the
    things that we did right in the 20th century. We don't have anymore the
    cold war amongst us. We don't experience anymore the bipolarity that
    affected our lives during half a century. And so now we should try to do
    in the 21st century, make it the century of inclusion of those that are
    disfranchised in the 20th century--disenfranchised. And I am talking
    about the less-developed countries in Latin America, of South America,
    of Africa, and of Asia.
        And we also have a subject matter that we have to cope in the 21st
    century that we did not cope well in the 20th century, and that could
    pervade our relations for the next years; that is the issue on climate
    change that affects the planet Earth. Twenty years ago, when we were
    warned about the problems that we were causing to the world, we used to
    call--put the blame on those that were making this warning. We
    criticized them. We said that they were responsible. And we criticized,
    sometimes, minority groups that went to the streets with their banners
    and flags, advocating for environmental preservation.
        Now has come the time for all the countries in the world to take
    very seriously climate change and environmental issues. Why so? Because
    humanity faces one of the major risks in its history. Global warming is
    a reality that threatens us by land, by the air, and by the water, a
    dilemma that ironically embraces all of us, no matter where in the
    planet Earth. The issue is frightening and very concrete and a problem
    of today. But its solution is still feasible, and part of the solution
    is in our reach.
        We have talked already about this twice. We have talked about
    biofuels and about our determination in deepening the cooperation in
    this sector. The memorandum of understanding that was signed in Sao
    Paulo is the basis of an ambitious partnership that will make it
    possible for us to confront the major challenges of this century that is
    now beginning: First of all, the resolution of the energy crisis that
    affects almost all countries in the world; secondly, the environment
    protection threatened by the global warming of the planet; and finally,
    poverty relief and social exclusion with the creation of new jobs and
    expanding the workers' income and for the poorest workers in the world.
        We intend to send our scientists and experts from Brazil to research
    centers in the U.S. and vice versa. We will create a fund with the
    support of international agencies, so that we can finance the
    cooperation with the most needy and interest--countries. We're also
    committed to the strengthening of the International Biofuel Forum. I
    invited the United States to participate in

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    an international conference on the issue that Brazil will host in the
    year 2008.
        The concern with the environment is growing in Brazil and in the
    world and, above all, especially after the latest reports from the U.N.
    panel on climate change. The stimuli for sustainable production of
    biofuels is a decisive part of this endeavor to resolve this issue. The
    biofuels offer, equally, an unique opportunity for the energy
    democratization of the world to diversify sources of production. We also
    have obtained good results in different, various areas.
        It's important to say to President Bush, here in Camp David, in his
    residence, that, for me, the biofuel issue is almost like an obsession.
    I don't know why, but we already have talked about--or heard about
    biofuels since 1925. Already was mentioned biodiesel in 1943 in Brazil.
    Nevertheless, since we didn't have the dimension, the scope of the evils
    that oil could cause, or any other kind of energy matrix to the world--
    because also, oil was very cheap in those days--this was not taken
    forward by any country, neither by the automobile industry of any
    country. And now we are facing a period, a moment, where this new energy
    matrix can make the world more independent.
        It can make the world creating more wealth, because the experience
    that we have in Brazil is that for each worker that works in a biodiesel
    plant, it is necessary 1,000 workers in the countryside, which means
    that we can create millions of jobs for the less-developed countries in
    the world. That was not foreseen in any paper that was signed by us in
    the 20th century.
        In Brazil, in the last 4 years, we managed to reduce the
    deforestation of the Amazon rainforest in 52 percent. More than 2
    million hectares have been saved. Please pay attention--more than--and
    carbon gas emissions have been reduced in more than 400 tons, emissions
    to the atmosphere. And we know that the rainforests are amongst the
    great victims of climate change. In the negotiations on the Convention
    on Climate Change, we proposed financial incentives to reduce carbon gas
    emissions per ton, resulting in further reductions of deforestation. We
    expect that our proposal would have the support of the international
    community and obviously--especially, and mainly from the U.S.
        We first can establish a partnership either for promoting biofuels,
    as also in fighting the investigation of the global warming and of
    deforestation itself, with full respect to the sovereignty of each
    country.
        Brazil has the largest and most important biodiversity on the
    planet. We have the consciousness of the value that this natural asset
    represents for our country and for the world. Brazil, with 383 million
    hectares of arable land, has the capacity to reconcile food production,
    biofuel production, and the defense of our forests.
        Our well-known commitment to fight hunger does not allow us that any
    activity would cause damage to the food production. I should say--and
    President Bush knows very well, and I also know--and I believe that all
    rulers are aware that the world hunger does not result from a lack of
    food. Rather, it has more to do with the distribution of income and the
    lack of political will.
        Talking with President Bush about the concern of my Government to
    fight hunger and poverty, I mentioned our concern with the Doha round of
    the WTO. It is central in our struggle against poverty. And I leave Camp
    David with the certainty that I've never seen. In all the previous
    conversations that I had with President Bush or with my Minister of
    Foreign Affairs--with Condoleezza, Madam Condoleezza Rice--I never have
    left a meeting between us with so much optimism as I am this way, that I
    believe that we're getting closer than we have ever been before to reach
    an agreement during the Doha round of the WTO.
        We are trying to conclude with success these trade negotiations. We
    have urgency

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    in reach and ambitious and balanced agreements. The continuation of
    agriculture subsidies makes food more expensive and does not stimulate
    its production in the less-developed countries. Without eliminating
    subsidies, the opportunity of development represented by biofuels will
    be lost and, with that, the possibility of the improvement of living
    conditions of hundreds of millions of lives of men and women.
        So that's why it's necessary to eliminate the trade barriers to
    ethanol, so that we can really reach a true energy commodity. I dream
    that, at the most, 15 to 20 years from now that the world will surrender
    to the biofuels. So those that believe in that, they start to invest
    today and now, because if they leave it for the future, they're going to
    lag behind and they're going to lose the train and, possibly, they will
    be lagging behind in the history of modernization.
        Dear friends, naturally, I have spoken with President Bush about the
    Brazilian concern on the limited progress of the U.N. reform. This is
    where we have more divergence. But in politics, if there's no
    divergence, if it's not interesting to work with politics, to being
    politics, but I really wanted, truly, to say to President Bush what was
    Brazil's view. And President Bush told me what his vision was.
        And we reached a conclusion, and certainly, it's not an agreement
    yet, that the U.N. reform still will have to undertake other reforms
    that we have to undertake within the U.N. itself so that we can
    guarantee the U.N. Security Council reform. Since I only have 61 years
    of age and I have another 4 years of my term, I am convinced that it
    won't take a long time for us to see this Council changed and the U.N.
    reformed. I know that it is a highly complex issue, but we cannot
    postpone it anymore. I am certain that the dialog between our countries
    will contribute to forward the issue in a much more faster and
    appropriate way.
        We also talked about other issues on the international agenda, as
    the situation in the Middle East, especially in Lebanon. And maybe many
    of you don't know--and I told President Bush that--that in Brazil, we
    have a community of more than 10 million inhabitants of Lebanese and
    Syrian ancestry. And so that's why we have been trying to attend all the
    fora that deal with this issue. And within our possibilities, we try to
    cooperate to rebuild Lebanon. We also have tried to help the
    construction of a viable Palestinian state while, at the same time,
    respect Israel's right to exist.
        Ladies and gentlemen, we approached important issues in our regional
    agenda, and I told to President Bush that we have to do more for Haiti.
    And, in this case, it's interesting to remember that we have reached
    already agreements not only to work together with Haiti and in Haiti and
    work together with the Dominican Republic, and work together in
    countries like Sao Tome and Principe in Africa and in Guinea-Bissau in
    Africa. And if these experiments are successful, these joint
    partnerships, this joint work, I believe that we'll have much more room
    for us to build other projects between the U.S. and Brazil, so that we
    can help third party countries.
        We also agreed that the cooperation with biofuels in Haiti could be
    decisive to that country. It's not suffice to be the armed forces from
    Brazil, Chile, Argentina in Haiti, leading the stabilization mission of
    the U.N. We need to guarantee democracy in Haiti, governance. It's
    necessary to guarantee their security. But if we don't have development
    and jobs, all of that will disappear very quickly.
        I also told President Bush that Brazil invests firmly in South
    American integration. I should say, President Bush, this is another
    thing that I pursued since the first year of my term. If we want to
    guarantee democracy in South America, if we want to guarantee South
    American development, if we want to guarantee the strengthening of the
    institutions in South America, we have to have the consciousness that
    fiscal

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    integration is a basic addition for the development of the region. And
    maybe, who knows, the United States can be a partner of Brazil and of
    other countries in South America in the fiscal integration that we so
    much are in need. And we understand that this is what will guarantee
    development for the region and will guarantee democracy, and so will
    open the opportunities that we did not have years ago for us to develop
    ourselves.
        We are obtaining extraordinary advances vis-a-vis integration,
    expanding trade, and making all the infrastructure work that we can
    develop. The bottom line is that we're getting closer ties to our people
    that were very much far away from each other in the past. And so now
    we're getting closer, and so that's why I invited President Bush from
    the U.S. to become a partner in this integration process and building
    the fiscal integration of our continent.
        I also mentioned to President Bush an important role that the United
    States can play with South American countries that are living in special
    situations, especially those that need trade preferences. It is
    extremely important for the U.S. to support these countries that need
    these trade preferences. We need to support them because this will
    guarantee the regional stability that is the interest of--to Brazil and
    all the countries in South America, and certainly, this is the interest
    of the U.S. too.
        Together, we can provide aid to those countries that are still
    needy, especially in Africa. I have already mentioned the agreement that
    we signed with Guinea-Bissau and for Sao Tome and Principe.
        The challenge, President Bush, in the world of today in trade, in
    security, in the environment, and fighting poverty are immense. To
    resolve these issues, there is only one way--is through dialog, with a
    frank and mutually respectful dialog. That's the only way. With this
    objective, I have been saying to President Bush that I am willing to
    gather with him as many times it's necessary, and with all the heads of
    government around the world as many times would be necessary, so that we
    can, in the 21st century, arouse a little bit of hope in part of the
    poorest population in the planet. We have in our hands and our reach the
    power to do so. We will not do it if we don't wish to do so.
        So that's why, before we answer questions from the press with
    President Bush, I would like to convey to President Bush that, of all
    the meetings that I participated, meetings with the American Government,
    this was the meeting that was the most productive one. If someone asked
    me, ``What are you taking back to Brazil,'' I would say, ``Nothing. I'm
    not taking back anything to Brazil.'' But certainly, the agreements that
    we have signed today, the agreements that we can still sign from here
    onwards, can guarantee in a definite way that the relations between U.S.
    and Brazil, not only it's necessary, but it is strategic so that we can
    consolidate a new development model, a new trade policy, and, above all,
    a new way to cope with the very serious, severe issues that affect the
    planet.
        So for all that, thank you very much.

    Department of Justice

        Q. Mr. President, the Attorney General's chief of staff testified
    that Gonzales knew more about the U.S. attorney firings than he let on.
    Now, how can the American people have confidence in an Attorney General
    who is not completely forthright? How long does he have to repair the
    damage? And can the damage be repaired?
        President Bush. Attorney General Al Gonzales is an honorable and honest man, and he has my full
    confidence. He is providing documents for Congress to find the truth. He
    will testify in front of Congress, and he will tell the truth.
        The U.S. attorneys serve at the pleasure of the United States
    President. I named them to 4-year terms; they served their 4-year terms.
    And I appreciate their service. I'm sorry that this--these hearings and
    all this stuff have besmirched their reputation.

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    That's certainly not the intent of anybody in this administration. But I
    will remind you, there is no credible evidence that there has been any
    wrongdoing.

    Trade

        Q. The good will between you gentlemen is very evident. President
    Lula, it is also evident the effort to advance with the Doha round. If
    the Doha round has not reached its success, Brazil, does it have a B
    plan?
        President Bush, what is the impediment--or what would be the
    impediment for the United States to have a bilateral agreement on trade
    with Brazil?
        President Lula da Silva. Well, I have said to all the heads of state
    in government that I have been in contact and on--to President Bush, to
    Tony Blair, and to Chancellor Angela Merkel, to Prodi, Prime Minister
    Prodi, and to President Chirac--with all I have been talking to, I have
    said that the Doha round is not important only for Brazil; it's not
    important only for the United States; it's important so that we can
    guarantee hope around the world, and especially the certainty that we
    will have more peace in the world.
        Brazil is a competitive country in agriculture. Brazil, today,
    exports--50 percent of its exports are semi-industrialized goods. And so
    we do have the conditions--competitiveness conditions. President Bush
    knows, and I know, and I believe that all the leaders know that when we
    talk about agreements at the WTO, we are making an endeavor at the Doha
    round--we are working especially so that the less-developed countries
    could have an opportunity, a chance. Of course, we can improve our
    relations when Brazil makes decisions about industrialized products or
    in the service industry. Of course, we could improve when the United
    States takes a position about what kind of subsidy will be reduced, or
    the European Union could say if they're going to accept or not
    agricultural goods--reduce the subsidy so that the markets of the less-
    developed countries could have market access to Europe.
        If we don't reach an agreement, Brazil will continue to follow the
    path that it's followed: working, producing more, and selling and also
    buying. But certainly, those that will suffer more will be those don't--
    that don't even have the opportunity to participate in the meetings that
    other countries have the power to do so.
        I have made these appeals, and I believe that that's why I said, to
    leaving here, Camp David; I'm leaving here very satisfied because this
    was an extraordinary and productive meeting, because I heard from--the
    intention of the American Government on this issue. Our is--we have full
    willingness, and I believe that if we work together, the U.S. and
    Brazil, to try to convince our European partners--I believe that we can
    reach an agreement.
        And I believe that, in this case, there's no B plan. Either we have
    the A plan, or there's no agreement. And if there's no agreement,
    certainly, we will not have winners or losers; everybody will lose.
    Everybody will lose, the rich, because they will be liable for what will
    happen in a poorest world.
        President Bush. All our trade discussions have centered on
    completing Doha. It's the only discussions I've had with the President.
    I've been asked about plan B's before, on different subjects. And that
    kind of means you're willing to retreat. I'm a plan-A man, just like the
    President is. Let's get the job done.
        And for the United States, we're willing to reduce our agricultural
    subsidies in a substantial way. We understand. On the other hand, we
    expect our goods and services--whether they be agricultural goods or
    manufactured goods and services--to be given access to markets. The
    interesting thing is, is that Brazil is a strong exporter, and it's in
    Brazil's interest that their goods and services be--have access to
    markets as well.

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        This is a difficult negotiations because there's a variety of
    interests. And step one is--to be successful in this complex
    negotiations, is there a genuine desire to succeed? In other words, are
    people just showing up for the sake of showing up, or are people
    actually coming to the table with a genuine desire to succeed? I assured
    the President again that the United States has a genuine desire to
    succeed in these talks. I do, because I believe that, one, I think the
    world has a tendency, at times, to become isolationist and
    protectionist. In other words, there's that movement, that isolationist
    movement can become prevalent. And if that were to happen, it would make
    the world a lot more unstable, and it would make the world more poor.
        I'm going to repeat what I told you earlier: Ours is a very
    compassionate nation. We deeply care about the human condition around
    the world. And I firmly believe that the best way to alleviate world
    poverty is through trade. That's what I believe. It's not the only way,
    but it is the best start--let me put it to you that way--coupled with
    health initiatives that we're working on, food initiatives that the
    President described. But if you're genuinely interested in eliminating
    poverty--and I am--commerce, trade, opportunity, and hope will all
    flourish with a completion of the Doha round.
        So we are seriously involved. Now, what we won't do is accept a
    unilateral deal. And the President has never asked us to do that; that's
    not his intention. His intention is, we want to work together to make
    sure all are treated fairly. I certainly hope that's the case with the
    rest of our potential trading partners and our negotiating partners,
    that they don't expect the United States to carry the entire load in
    making sure the agreement moves forward.
        And so we strategized together. Our--the ministers will talk a lot.
    Ambassador Schwab stayed behind in Sao Paulo
    to converse with her counterparts. There is a lot of work going on. And
    I believe there's a good chance we can complete the round. And so
    therefore, your plan B will be irrelevant--[laughter]--I hope.

    Environment/British Military Personnel Held in Iran

        Q. Jennifer Griffin of FOX News. Mr. President, the Iranian hostage
    crisis has just entered its ninth day--passed its ninth day. Would the
    British be within their rights to consider a military option if the
    crisis drags on? And would the U.S. have considered it an act of war if
    it had been U.S. sailors and marines who had been taken? And would you
    consider trading the five Iranians who were captured in Irbil back in
    January if it would help resolve the crisis?
        And, Mr. President, did you see eye to eye with the President on
    global warming? Would you say that you two agree that global warming is
    a problem? Thank you.
        President Bush. Let me start with global warming. One reason you
    promote alternative fuels is to be better stewards of the environment.
    Many of the greenhouse gases come from tailpipes of automobiles. And
    therefore, when you get away from gasoline and start using ethanol or
    biofuels, you make a significant step toward improving the environment--
    just to make sure I'm on the record here.
        The Iranian issue is a serious issue. It's serious because--or the
    British hostages issue is a serious issue because the Iranians took
    these people out of Iraqi water. And it's inexcusable behavior. And I
    strongly support the Blair Government's attempts
    to resolve this peacefully, and I support the Prime Minister when he
    made it clear there were no quid pro quos. The Iranians must give back
    the hostages. They're innocent; they were doing nothing wrong; and they
    were summarily plucked out of water. And it is--as I say, it's
    inexcusable behavior.
        President Lula da Silva. Well, I believe that we are in agreement in
    relationship to the policies that we have to undertake

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    so that we should be more careful and take better care of the
    environment. And on the climate change issues discussions, we have
    common interests. What happens is that--to know the timing and what to
    do. Now, in the case of Brazil, we already have 25 percent of ethanol--
    or better saying, 23 percent of ethanol blended, or as a blender, in
    gasoline for a long time. And now we have a flex-fuel engine, a car
    moved by flex-fuel engine that can use 100 percent of gas or 100 percent
    of ethanol or 50 percent of alcohol, 50 percent of ethanol as blender.
        So this is the road that--where we can start to depollute. And then
    it's not only the ethanol issue or the biofuel issue; there is also the
    electrical hydropowerplants. We also have to have the responsibility on
    us to build thermal plants based on coke, moved by coke--moved by coal--
    I'm sorry. And so it's essential that the company should invest more in
    reducing gas emissions.
        So the fact of the matter is the following: That the climate change
    issue today is a severe disease. There's no social sector that it
    doesn't reach. It will reach all the planet as a whole. There's no way
    for us to escape. So we have not managed yet to reach Mars, and Moon is
    not a proper place for us to live. So either we take care of planet
    Earth very carefully, as we take care of our sons, or all of us will
    regret that in the future. And although, those already my age--I'm with
    61 years of age, but I have grandsons, and I want to have grand-
    grandsons, and so I want them to have the pride that their grandfather
    helped to build a better world, better than I received from my father.
        So I believe that all of us will reach an agreement, that it's
    necessary and very much so the responsibility and liability, in the
    discussions on climate issues than we have had up until today. The evil
    is facing us, and we see the evil, and we feel the evil, but there's no
    way that we can turn our back to that.

    Iran

        Q. The American Government, last week, have manifested a lot of
    concern with the investments of some foreign companies in the oil
    industry in Iran. And in this week, the American Ambassador in Brazil
    made it very clear that this concern also extends to Petrobras
    investments that Petrobras considers strategic. So I'd like to ask
    President Lula if, in his assessment, Petrobras should continue to make
    businesses with Iran or should get away from Iran, like the United
    States would like us all to do?
        So--and I would like to ask President Bush, why does the United
    States want Petrobras to be out of Iran if the country has fulfilled all
    its sanctions that was approved--passed by the U.N.?
        President Lula da Silva. Well, I am convinced that Petrobras will
    continue to invest in oil prospection in Iran. Iran has been an
    important trade partner for Brazil. They buy from us more than $1
    billion, and they don't almost sell anything to us. So I'm an advocate
    that trade, fair trade is the trade that you buy and sell. You sell and
    buy, you can't just sell.
        And then there's also political issues in each country. Each country
    faces their own domestic issues. But up until now, Iran has not been a
    victim of any sanction that was proposed by the U.N. I know that there's
    political divergence on this between Iran and other countries, but with
    Brazil, we have no political divergence with them, so we will continue
    to work together with Iran on what is of the interest of Brazil. I don't
    see any major issue to do it in a different way.
        President Bush. Every nation makes the decisions that they think is
    best in their interest. Brazil is a sovereign nation; he just
    articulated a sovereign decision. And as you mentioned, the trade that
    you were discussing was not in violation of any U.N.--in any U.N.
    mandate.
        Our position is that we would hope that nations would be very
    careful in dealing

    [[Page 372]]

    with Iran, particularly since Iran is trying to develop a nuclear
    weapon, and a major threat to world peace is if the Iranians had a
    nuclear weapon. And that is why there are sanctions imposed at the
    United Nations, as a result of collaboration between the United States,
    EU, China, and Russia, to make it clear to the Iranian regime that there
    is a better way forward other than isolation.
        We have no problems with the Iranian people. As a matter of fact,
    the United States highly respects the people of Iran. We respect the
    history of Iran; we respect the rich traditions of Iran. We, however,
    are deeply concerned about an Iranian Government that is in violation of
    international accords in their attempt to develop a nuclear weapon. And
    therefore, whatever comments you hear reflect that concern. And we will
    continue to work with the international community to say that it is in
    the world's interest that Iran not develop a weapon. It is in the
    interest of peace that they not develop a weapon.
        And I'm hopeful that the people of Iran will be tired of the
    isolation. I would hope that there would be some rationality amongst
    their leaders in choosing a better way forward for the people. They're
    depriving their people of a lot of opportunity.
        Now, having said that, the United States does believe that it's in
    our interest that we have people-to-people exchanges. As I say, we have
    no problem with the Iranian people. As a matter of fact, we just sent a
    wrestling team to Iran, all attempting to make it clear to the Iranian
    people that we're interested in having a constructive relationship. And
    it is the decisions of their Government that are preventing that from
    happening.
        Thank you. Good job.

    Note: The President's news conference began at 4:20 p.m. In his remarks,
    he referred to U.S. Trade Representative Susan C. Schwab; and Prime
    Minister Tony Blair of the United Kingdom. President Lula da Silva
    referred to Minister of External Relations Celso Amorim of Brazil;
    Chancellor Angela Merkel of Germany; Prime Minister Romano Prodi of
    Italy; and President Jacques Chirac of France. Reporters referred to
    former Chief of Staff to the Attorney General D. Kyle Sampson; and U.S.
    Ambassador to Brazil Clifford M. Sobel. President Lula da Silva and some
    reporters spoke in Portuguese, and their remarks were translated by an
    interpreter.