[Weekly Compilation of Presidential Documents Volume 33, Number 7 (Monday, February 17, 1997)]
[Pages 183-189]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
The President's News Conference With Prime Minister Netanyahu of Israel

February 13, 1997

    The President. Good afternoon. Please be seated. I'm pleased to 
welcome Prime Minister Netanyahu back to the White House for his fourth 
visit since taking office. He comes at a time of great sadness in 
Israel, following the terrible helicopter accident of 9 days ago. We 
know that in Israel every death is in the family. And on behalf of the 
American people, Mr. Prime Minister, once again I would like to extend 
our deepest sympathies to the loved ones of the victims and to all the 
people of Israel.
    Since our meeting in October, we have traveled a very long way. Then 
we met in a time of crisis; now there is a renewed sense of promise in 
the Middle East. I want to congratulate the Prime Minister for 
concluding

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the Hebron agreement last month with Chairman Arafat. They have reached 
a milestone on the way to a secure and lasting peace. The agreement 
solved the immediate issue of redeployment and laid out a roadmap for 
the next steps that must be taken to fulfill existing agreements and to 
move ahead to the pivotal questions of the future.
    Beyond the specific commitments made, the Hebron accord is important 
because it renewed the partnership between Israelis and Palestinians, a 
partnership that is essential to the success of the peace process. The 
United States is proud to have helped in this effort.
    Today the Prime Minister and I discussed what Israelis and 
Palestinians need to do next to strengthen this relationship that is so 
central to all our hopes for the Middle East. We have an opportunity to 
build on the new momentum coming out of last month's agreement. It must 
not be wasted.
    The release of Palestinian prisoners earlier this week was an 
important sign of Israel's respect for past agreements and its 
willingness to take into account Palestinian needs. Both sides must show 
the same kind of determination as they seek to resolve on the basis of 
reciprocity the issues that remain. The challenges will be great, but 
the Prime Minister and Chairman Arafat have shown that the will is 
there. Just as America has been by Israel's side each step of the way, 
in the journey that lies ahead we will help Israel and its partners move 
forward.
    The achievement of Hebron is a call to action, and it must be 
heeded. The United States and Israel share a goal of a comprehensive 
settlement and a powerful belief that peace and security are 
indivisible.
    The Prime Minister and I exchanged ideas on how to revive 
negotiations between Syria and Israel. I believe both nations want to 
conclude a peace agreement, and the United States will work with them to 
achieve that goal. We also believe it is important that Israel and 
Lebanon achieve an agreement to complete the circle of peace.
    We agreed on the need for increased contact and better ties between 
Arab States and Israel. This will be a priority in my meetings with 
other Middle East leaders over the next month. It's time to reinvigorate 
talks that bring together Israelis, Arabs, and the international 
community to address regional issues such as water resources and 
environmental protection and to clear the way to more trade between 
Israel and Arab nations.
    To make peace meaningful, reconciliation must deepen. And Arabs and 
Israelis must both harvest more of the fruits of peace. The pursuit of 
peace and the practice of terror are incompatible. For negotiations to 
succeed, there must be a climate of stability and tranquility. For peace 
to endure, Arabs and Israelis must know the calm of a normal life.
    Prime Minister Netanyahu and I reviewed our shared efforts to combat 
terror, including the 2-year, $100 million program I announced last 
year. Those funds have allowed Israel to invest in research and 
development for new technologies, to procure state-of-the-art security 
equipment, to streamline the passage of goods and people from the West 
Bank and Gaza. That way Israel has more security, and Palestinians have 
more economic opportunity.
    Finally, I reaffirmed to the Prime Minister America's unshakable 
determination to continue helping Israel to meet its security needs. The 
delivery of F-15-I fighters beginning this year will strengthen Israel's 
air defenses against any attack. And our cooperation on theater missile 
defenses through early warning systems and defensive programs like the 
Arrow is reducing the chance that Israelis again will fear missile 
attacks from distant enemies.
    When Binyamin Netanyahu first visited the White House as Prime 
Minister, I pledged that we would preserve and strengthen the bonds 
between our two nations. With this meeting we have taken another step to 
fulfill that promise, to deepen the partnership that has made it 
possible for so many extraordinary changes to occur in the Middle East 
since 1993--through the agreements last month and through other things 
that will now be done to sustain us as we move forward toward our common 
dream of a comprehensive peace.
    Thank you, Mr. Prime Minister. The floor is yours.
    Prime Minister Netanyahu. Thank you. Mr. President, I want to thank 
you first for the very moving words that you expressed,

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your sharing of our grief, the sharing of the American people of the 
great sorrow of the people of Israel in our recent tragedy. I think 
you've shown yourself to be a great champion of peace and an exceptional 
friend of Israel. And I must say that both of these attitudes were in 
evidence today in our discussions, discussions between friends who wish 
to achieve peace and security.
    We discussed the progress and the various tracks of peace, both with 
the Palestinians and as we hope with the Syrians. And I found, as always 
in my discussions with you, Mr. President, your unshakable commitment to 
Israel's security and understanding of how security is intertwined with 
peace and a desire to assist us with our Arab partners to walk on that 
road of peace and security.
    I think that the strength of the American-Israel relationship is a 
fundamental factor in the pursuit of peace, of a secure peace in the 
Middle East. And I come out of these meetings with renewed confidence in 
our ability to progress on that road.
    Thank you, Mr. President.
    The President. Now, we'll start with Terry [Terence Hunt, Associated 
Press], and we'll alternate between American and Israeli journalists. 
And the Prime Minister will call on the journalists from Israel.

Syria

    Q. Mr. President, you mentioned Syria. What are the prospects for 
restarting peace talks with Syria? And the Prime Minister was said to be 
bringing a territorial compromise on the Golan Heights. Did you discuss 
that, and what can you tell us about it? Do you think it might work?
    The President, I would very much like to see the talks resume. And I 
think it's an important part of continuing the process, keeping it 
alive, keeping the momentum going. We had an extensive discussion about 
the whole issue of every aspect of the peace process. But I think the 
only way the United States has been able to be a constructive force in 
this process for the last several years is not to say anything which 
will undermine the prospects of its success. So if I--I'm going to 
follow the rule I've followed since I first came to this job: Until we 
have something to say publicly, anything I comment on will only 
undermine the chances of peace.
    I do feel encouraged by the discussions we've had, that there are 
things worth working on, working through. I'm hopeful that we can get 
the Syrian track going again. But I have nothing specific to say at this 
time.

Middle East Peace Process

    Q. Mr. President, I believe that you had a very lengthy private talk 
with Prime Minister Netanyahu. In your private conversation today, did 
he outline to you how does he see the future Middle East or the 
permanent settlements--peace settlements in the Middle East between 
Israel and Syria, between Israel and the Palestinians or the Palestinian 
Authority? Privately, did he say anything to you about it?
    The President. You mean you want me to make the private talk not 
private anymore? [Laughter] No, the answer--yes, the answer is, I 
believe he has thought through a way consistent with the security of the 
people of Israel that a comprehensive peace might be achieved. We all 
know that there are a lot of things out there that still have to be 
resolved. But I was impressed that it's obvious that he has been 
thinking very hard about this and thinking about it from a security 
point of view and from a point of view of peace and long-term harmony 
and prosperity of peoples in the region. I was encouraged by that.
    Helen [Helen Thomas, United Press International].

Lebanon

    Q. Mr. President, assuming that Ambassador Indyk was correctly 
quoted on our policy in Lebanon and assuming that we still have a 
tradition of supporting territorial integrity, why are you against the 
withdrawal of Israeli troops from Lebanon at this time?
    The President. I believe it is imperative that Israel maintain the 
security of its northern border, and therefore, I have believed that the 
United States should be somewhat deferential under these circumstances, 
which are quite unusual, as we've seen repeatedly over the last few 
years, in the decisions that Israel would make. So it's up to the Prime

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Minister to announce the policy of his country, not me, on this issue.
    Q. Even to the point of occupying someone else's country?
    The President. Do you want to make a comment about it?
    Prime Minister Netanyahu. Thanks. [Laughter]
    The President. Get me off the hot seat. [Laughter]
    Prime Minister Netanyahu. Well, we have no desire, Helen, to be in 
Lebanon. We're there simply because there's a desire of some people in 
Lebanon to be in Israel, specifically, to launch attacks against Israel. 
They've been doing that over the years. I'm talking about Hezbollah at 
this stage. And we have said that we would withdraw from Lebanon if we 
could secure our northern border. Our concern is that if we simply 
walked away to the border, the Hezbollah and other terrorists would just 
come to the fence and attack our towns and villages and our citizens 
from that improved position.
    My view is that we can achieve an ultimate withdrawal from Lebanon 
if we could have somebody dismantle the Hezbollah military capacity in 
the south of the country and take up the slack--preferably it should be 
the Lebanese army. That is something that we're prepared to negotiate 
with the Government of Lebanon, and it's no secret with Syria, that has 
more than a minor influence in Lebanon. That is our position. It hasn't 
changed.

Iran and Saudi Arabia

    Q. Mr. President, Mr. Prime Minister, Iran is developing long-range 
missiles with Russian know-how. Is that a clear and present danger to 
Israel? On another--friends of the United States, the Saudis, will get 
the latest technology from United States. Will that be a danger to 
Israel's qualitative edge? Thank you.
    The President. Let me answer the second question first, and then 
I'll answer them both. First of all, with regard to Saudi Arabia, we 
have had a long and very important defense partnership which persists to 
this day and which has contributed, I believe, to the security of 
Israel. We have not been asked by the Saudi Government for F-16's, which 
I take it is the import of your question, so I will get to the 
specifics. Obviously, any request they would make of us we would have to 
seriously consider. But any decision that I make about that has to be 
made in a way that is consistent with our first commitment which is to 
do nothing that will undermine the qualitative edge of Israeli security 
forces in the Middle East.
    Now, with regard to the second question, we are obviously concerned 
about Iran from many perspectives, not only from the build-up of its 
conventional military forces but also from the continued determination 
of the government to support terrorists in the region and beyond. And we 
are doing what we can to stem the tide of terrorism. And I will say 
again, we will do what we can to make sure that no development in any 
other country that is beyond our control or influence will be permitted 
to erode Israel's qualitative security edge. That is our responsibility, 
and we'll do our best to fulfill it.
    Bill [Bill Plante, CBS News].

China and Campaign Financing

    Q. Mr. President, your Press Secretary said earlier today that you 
were surprised and concerned by reports that there may have been plans 
made in the Chinese Embassy to funnel foreign contributions to the 
Democratic National Committee this year. Does this give you concern that 
there could be industrial or economic espionage as a target of this? And 
do you think this tips the scales in favor of having an independent 
counsel on the campaign finance question?
    The President. Well, first of all, the--let me answer--the second 
question has and should be answered entirely by the Justice Department. 
The statute about that depends not on the gravity of the subject but on 
what the targets are. And it's fairly well covered. The Justice 
Department has spoken to that and will continue to speak to that and 
will make the decisions. I don't want to have any comment about it.
    On the first, let me say that, first of all, this is a serious set 
of questions raised here. And the first I knew about any of it was last 
evening. They obviously have to be thoroughly investigated. And I do not 
want to speculate or accuse anyone of anything. I do

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not--I know nothing about it other than what I heard last night, which 
is reflected entirely in the article this morning in the Post. But 
obviously, it would be a very serious matter for the United States if 
any country were to attempt to funnel funds to one of our political 
parties for any reason whatever.
    So I think we just have to let the investigation proceed, and we 
should all support it in every way we can. It has to be vigorous, and it 
has to be thorough.

Lebanon and Syria

    Q. Mr. President, it is the American view that it's possible to 
reach a settlement in Lebanon without first reaching an overall 
settlement with Syria? And if so, will the American Government do 
something to seek such a solution?
    The President. Well, let me say I would support any reasonable 
efforts to reach a comprehensive settlement with Lebanon that the 
Government of Israel thought was feasible and was willing to undertake. 
I think that we all know what the facts are there, and we all 
understand. You just heard the Prime Minister talk about the problems 
along the border. I think we all understand it would be at least 
certainly a lot easier to do if there were also an agreement with Syria.
    You know, we have a special feeling in this country for Lebanon, and 
we have a lot of the sons and daughters of Lebanon who are American 
citizens now. And it is a particularly grievous thing for us to see the 
relationships between Israel and Lebanon in the position they're in. But 
we have to look at this over the long run. I think that--we have talked 
about this frankly; we've had several conversations about this. We have 
to do what we think is possible, and Israel has to do what we think is 
possible. If it became possible to have a real and meaningful agreement, 
would I be for that? You bet I would. Is it now? I'm not sure.
    And you may want to----
    Prime Minister Netanyahu. I think you said it very well.

American Airlines Labor Dispute

    Q. Mr. President?
    The President. Yes, John [John Palmer, NBC News]?
    Q. Mr. President, I wondered if you could give us your assessment of 
the impact of a possible American Airlines strike at midnight tomorrow 
night? Have you received the Department of Transportation report on that 
impact and how serious would it be? And would you plan to invoke any 
special powers and keep them on the job through an emergency decree?
    The President. Today I want to say no more than I did yesterday, 
except to reemphasize that it should be obvious to everyone looking at 
this that it cannot be a good thing for American Airlines, but more 
importantly, it cannot be a good thing for the people of the United 
States and indeed people coming to the United States from other parts of 
the world for a significant interruption to occur in the operations of 
this airline.
    We've had so many problems with our airlines for several years. And 
now they've been doing quite well for the last couple of years. Our 
administration has worked very hard on that. This is an important part 
of America being seen as a vibrant, reliable, successful nation. And it 
would be quite disruptive if it occurs.
    So I want to say today, I want to reiterate my call to the parties 
to use the mediator and think about how they can reach out to one 
another in the best interest of the Nation, as well of American and its 
employees, all of its employees.

Israel-Syria Peace Talks

    Q. Mr. President, do you really think that Israel and Syria can 
resume the peace talks in an atmosphere like we have today, where 
Hezbollah keeps its terror activity and the Syrian and Iranian support? 
And what are you going to do about it, if anything--if you are going to 
do anything about it?
    The President. Well, actually, we spend quite a lot of time trying 
to do something about terrorists everywhere. We invest a lot of our 
resources and our efforts in working with our friends in Israel and 
throughout the world trying to prevent terrorists from conducting 
successful operations and trying to track them down and punish them and 
extra

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dite them and do what needs to be done when they do.
    So I think our--I think the United States has a clearer, more 
unambiguous position on terrorism, whether it affects our people 
directly or not, than virtually any other large industrial country in 
the world. And I will continue to do that.
    However, it has been obvious for some time to the overwhelming 
majority of people in Israel--which is why the Prime Minister has done 
what he's done and why his predecessors did what they did--that in the 
long run, there had to be a comprehensive peace in the region to end all 
the violence. And I applaud him for doing that.
    When we seek to make peace, we obviously are dealing with people 
with whom we have been angry, angry enough to take up arms, people with 
whom we have not had a relationship of trust. And that is what makes 
every step along the way so difficult. But I think to renounce the 
possibility of peace is not the right course. To stand up to terrorism 
in every way we can is the right course.

National Economy

    Q. In your economic report of the President, which was released this 
week, you said that the economy's health was the strongest it had been 
in decades. Today the stock market closed at about 7,000 for the first 
time. Are you concerned about the speed of that rise? Do you think it 
may well be justified, given what you see as a pretty strong fundamental 
economy?
    The President. I think it was 3,200 when I took office. [Laughter] 
And I got a call from a little town in the mountains of north Arkansas, 
from a friend of mine who was talking to his Republican stockbroker, who 
said, ``If it ever hits 4000, even I will vote for him.'' [Laughter]
    Let me say, my own view is that anything we say about this is likely 
to either have no effect or an adverse one. The market has produced a 
remarkable growth, but the economy is growing. Obviously, the concern 
is, you know, are the returns to stocks, returns to investment greater 
than can be justified based on the productivity and profit prospects of 
the companies that are being traded. But if you look at the stability 
and the growth that we've enjoyed and the prospects we have for stable 
growth with no inflation, it's hard to say that it's completely out of 
the question.
    More and more--keep in mind, one of the reasons this market has gone 
up is that just a few years ago only about a third of the American 
people owned stocks, either directly or indirectly through their 
retirement investments and mutual funds; today over 40 percent of the 
American people do.
    So, on balance, this has been a positive thing. Obviously, you 
know--some people say, ``Well, gosh, we don't want another 1987 here.'' 
But even after 1987 we had a rather rapid rebound. So I think what I 
need to do is to try to work on keeping the economy healthy. Let's go on 
and balance the budget. Let's invest in our future, and let's try to 
create a better worldwide trading system. Let's follow our strategy, and 
then let the market take care of itself, as long as there is no 
destructive element in it. That's what I think we should do.
    Want to take one more?

Abu Marzook

    Q. Mr. President and Mr. Prime Minister, are you considering once 
again the question of bringing Mr. Abu Marzook to trial in Israel?
    The President. The answer to that question is, we did not discuss it 
because it's a matter within the American courts. And there is nothing I 
can do about, nothing the Prime Minister can do about it. It's in our 
courts, and we can't discuss it until it's resolved in the courts.
    Prime Minister Netanyahu. I can only reaffirm that. But I can also 
tell you that, Mr. President, like you, I have a habit of not dealing--
not commenting on our stock market, which has been going up. [Laughter] 
But I will say that when the Israeli stock market reaches 7,000 I will 
comment on it. [Laughter]

Second Term Cabinet Nominees

    The President. Before I go I have to--since I didn't get a question 
on it, I have--there is one thing I want to say something about, just 
because I've heard it suggested that maybe I don't have a great interest 
in

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this. I've just literally not been asked about it.
    I have been very well-pleased with the treatment that my nominees 
for the Cabinet have received who have gotten their hearings and been 
taken to a vote. There are still some who have not gotten a hearing yet, 
and let me mention in particular Tony Lake. We've now answered all the 
questions that we've been asked. We've sent it up to the committee. And 
I think he ought to be given a hearing and a vote.
    And I'd like to remind everybody involved in this that it was Tony 
Lake who came up with the strategy that we implemented to end the 
bloodiest war in Europe since World War II. He was a terrific success as 
the National Security Adviser to the President. He has worked in these 
fields for 30 years. He fully understands the intelligence operations. 
He is superbly qualified. If someone has some reason to oppose him, let 
them oppose him in a hearing and then in a vote on the floor. But in 
view of his service, not to me but to this country, and the positive 
consequences of that service, whether it's Bosnia, Haiti, the agreements 
with Russia, you name it, he deserves--his service to this country 
deserved a hearing and a vote on the floor of the Senate. And I hope he 
will get it.
    Thank you very much.
    Q. [Inaudible.]
    The President. Well, I obviously feel that way about that, but you 
know, you've got this on the record about that. I think she'll sail 
through if we ever get her to a vote. The same thing about Secretary 
Pena. But I wanted to--I'm on the record, I think, with Alexis. I just 
wanted to be on the record with Tony.

Note: The President's 135th news conference began at 4:34 p.m. in the 
East Room at the White House. In his remarks, he referred to Martin S. 
Indyk, U.S. Ambassador to Israel, and Abu Marzook, alleged HAMAS 
terrorist.