[Weekly Compilation of Presidential Documents Volume 33, Number 13 (Monday, March 31, 1997)]
[Pages 399-408]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
The President's News Conference With President Boris Yeltsin of Russia 
in Helsinki, Finland

March 21, 1997

    President Clinton. Please sit down everyone. Don't make me all 
alone. [Laughter] Let me say that President Yeltsin and I will have 
opening statements, and then we'll begin alternating questions, first 
with a question from the Russian press and then the American press and 
then back and forth.
    I would like to begin by thanking President Ahtisaari, Prime 
Minister Lipponen, all the people of Finland for their very gracious 
hospitality to President Yeltsin and to me and for the extremely 
constructive role that Finland plays in a new era for Europe.
    This is my first meeting with President Yeltsin in each of our 
second terms, our 11th meeting overall. At each meeting we have 
strengthened our nations' relationship and laid a firmer foundation for 
peace and security, freedom and prosperity in the 21st century.
    Here in Helsinki we have addressed three fundamental challenges: 
first, building an undivided, democratic, and peaceful Europe for the 
first time in history; second, continuing to lead the world away from 
the nuclear threat; and third, forging new ties of trade and investment 
that will help Russia to complete its remarkable transformation to a 
market economy and will bring greater prosperity to both our peoples.
    A Europe undivided and democratic must be a secure Europe. NATO is 
the bedrock of Europe's security and the tie that binds the United 
States to that security. That is why the United States has led the way 
in adapting NATO to new missions, in opening its doors to new members, 
in strengthening its ties to nonmembers through the Partnership For 
Peace, in seeking to forge a strong, practical partnership between NATO 
and Russia. We are building a new NATO just as the Russian people are 
building a new Russia. I am determined that Russia will become a 
respected partner with NATO in making the future for all of Europe 
peaceful and secure.
    I reaffirmed that NATO enlargement in the Madrid summit will 
proceed, and President Yeltsin made it clear that he thinks it's a 
mistake. But we also have an important and, I believe, overriding 
agreement. We agreed that the relationship between the United States and 
Russia and the benefits of cooperation between NATO and Russia are too 
important to be jeopardized.
    We didn't come here expecting to change each other's mind about our 
disagreement, but we both did come here hoping to find a way of shifting 
the accent from our disagreement to the goals, the tasks, and the 
opportunities we share. And we have succeeded.
    President Yeltsin and I agree that NATO Secretary General Solana and 
Russian Foreign Minister Primakov should try to complete negotiations on 
a NATO-Russian document in the coming weeks. It would include a forum 
for regular consultations that would allow NATO and Russia to work and 
to act together as we are doing today in Bosnia. It would demonstrate 
that a new Russia and a new NATO are partners, not adversaries, in 
bringing a brighter future to Europe.
    We also agreed that our negotiators and those of the other 28 
participating states should accelerate their efforts in Vienna to adapt 
the CFE treaty to the post-cold-war era by setting new limits on 
conventional forces.
    The second area of our discussion involved our obligation to 
continue to lead the world away from the dangers of weapons of mass 
destruction. We have already taken important steps. We signed the 
Comprehensive Nuclear Test Ban Treaty. We extended a non-proliferation 
treaty. We stopped targeting each other's cities and citizens. We put 
START I into force. And we're both com

[[Page 400]]

mitted to securing ratification of the Chemical Weapons Convention 
before it goes into force next month, so that we can finally begin to 
banish poison gas from the Earth.
    Today President Yeltsin agreed to seek the Duma's prompt 
ratification of START II, already ratified by the United States Senate. 
But we will not stop there. The United States is prepared to open 
negotiations on further strategic arms cuts with Russia under a START 
III immediately after the Duma ratifies START II. President Yeltsin and 
I agreed on guidelines for START III negotiations that will cap at 2,000 
to 2,500 the number of strategic nuclear warheads each of our countries 
would retain, and to finish the reductions of START III by the year 
2007. Now, think about it. This means that within a decade we will have 
reduced both sides' strategic nuclear arsenals by 80 percent below their 
cold war peak of just 5 years ago.
    We also reached agreement in our work to preserve the Anti-Ballistic 
Missile Treaty, a cornerstone of our arms control efforts. 
Distinguishing between ballistic missile systems restricted by the ABM 
Treaty and theater missile defenses that are not restricted has been a 
very difficult issue to resolve. Today, after 3 years of negotiations, 
we agreed to preserve the ABM Treaty while giving each of us the ability 
to develop defenses against theater missiles.
    Finally, we discussed our economic relationship in the fact that the 
strong and secure Russia we welcome as a full partner for the 21st 
century requires that the benefits of democracy and free markets must be 
felt by Russia's citizens.
    President Yeltsin recently demonstrated his determination to 
reinvigorate economic reform in his State of the Federation Address and 
with the appointment of a vigorous new economic team. His bold agenda to 
improve the investment climate and stimulate growth includes 
comprehensive tax reform, new energy laws, and tough anticrime 
legislation.
    To help American companies take advantage of new opportunities in 
Russia, we will mobilize support to help finance billions of dollars in 
new investment. We will work with Russia to advance its membership in 
key international economic institutions like the WTO, the Paris Club, 
and the OECD. And I am pleased to announce, with the approval of the 
other G-7 nations, that we will substantially increase Russia's role in 
our annual meeting, now to be called the Summit of the Eight, in Denver 
this June.
    Here in Helsinki, we have proved once again that we can work 
together to resolve our differences, to seize our opportunities, to 
build a better future.
    Before I turn the microphone over to President Yeltsin, let me say 
one word about the bombing today in Tel Aviv, which we have both been 
discussing in the last few minutes. Once again, an act of terror has 
brought death and injury to the people of Israel. I condemn it, and I 
extend my deepest sympathies to the families of those who were killed or 
injured. There is no place for such acts of terror and violence in the 
peace process.
    There must be absolutely no doubt in the minds of the friends or of 
the enemies of peace that the Palestinian Authority is unalterably 
opposed to terror and unalterably committed to preempting and preventing 
such acts. This is essential to negotiating a meaningful and lasting 
peace, and I will do what I can to achieve that objective.
    Mr. President.
    President Yeltsin. Esteemed journalists, ladies and gentlemen, the 
first meeting of the Presidents of Russia and the United States has been 
held after our reelection. Naturally, it was a difficult one because 
difficult issues were under discussion. But as always, our meeting was 
quite frank, and on the whole, it was successful. And I am completely in 
accord with what the President of the United States, Bill Clinton, just 
said.
    We have opened a new stage of Russian-American relations. We 
discussed in detail the entire range of Russian-American issues--issues 
of Russian-American partnership which is quite broad in scale. After 
all, our countries occupy such a position in the world that the global 
issues are a subject of our discussions.
    Both sides defended their national interests, and both countries did 
not abandon them. However, our two great powers have an area--a vast 
area--of congruent interests. Chief among these is the stability in the 
international situation. This requires us to develop

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our relations, and there has been progress in that direction.
    Five joint statements have been signed as a result of our meeting. 
President Bill Clinton and I just concluded signing these--on European 
security, on parameters of future reductions in nuclear forces, 
concerning the ABM missile treaty, on chemical weapons, and we also 
signed a U.S.-Russian economic initiative.
    But we have not merely stated our positions. We view the signed 
statements with the U.S. President as a program of our joint action 
aimed to develop Russian-American partnership. I would say that emotions 
sometimes get the upper hand in assessing Russian-American partnership. 
This is not the approach that Bill and I have. Let's not forget that 
establishing the Russian-American partnership relations is a very 
complex process. We want to overcome that which divided us for decades. 
We want to do away with the past mistrust and animosity. We cannot 
accomplish this immediately. We need to be decisive and patient, and we 
have both with Bill Clinton.
    I firmly believe that we will be able to resolve all issues which, 
for the time being, are still outstanding. Today's meeting with Bill 
convinced me of this once again. We will be doing this consistently, 
step by step. We will have enough patience and decisiveness.
    And now I ask you to put questions to us.

Russia and NATO

    Q. Boris Nikolayevich, our first impression is that there was no 
breakthrough on NATO here in Helsinki. Tell me, can there be some kind 
of movement forward before the Madrid summit?
    President Yeltsin. I don't agree with you. It was today that we had 
progress, very principled progress, and they consist of the following--
that, yes, indeed, we do maintain our positions. We believe that the 
eastward expansion of NATO is a mistake and a serious one at that. 
Nevertheless, in order to minimize the negative consequences for Russia, 
we decided to sign an agreement with NATO, a Russia-NATO agreement. And 
this is the principal question here. We've agreed on the parameters of 
this document with President Bill Clinton.
    This is the non-proliferation of nuclear weapons, to those new 
members of NATO to not proliferate conventional weapons in these 
countries. We agreed on non-use of the military infrastructure which 
remained in place after the Warsaw Pact in these countries of Central 
and Eastern Europe. The decision of joint actions with Russia alone, 
this, too, will be included in the agreement with NATO.
    And finally, we've come to an agreement that this document will be 
binding for all. For that reason, everyone will sign this, all heads of 
state of all 16 member nations of NATO. This is a very principled issue, 
and we came to agreement on this with President Bill Clinton. That is, 
all states, all nations--and this will take place before Madrid--all 
heads of state will sign this document we sign together with Bill 
Clinton. And then there will be a signature of the General Secretary of 
NATO. And we believe that this document indeed is binding for NATO, for 
Russia, for all states whose leaders signed this document. So this is a 
very principled progress.
    We didn't talk about this just yesterday and the day before. We 
couldn't have. We can only talk about this now, during these minutes, 
once we've signed the statements with the President of the United 
States.
    President Clinton. Terry [Terence Hunt, Associated Press].

Status of New NATO Members

    Q. President Yeltsin, after all that you've been told about how the 
world has changed and that there will be no nuclear weapons in Eastern 
Europe, do you still regard NATO's enlargement as a danger to Russia?
    And to President Clinton, this exclusion of nuclear weapons from 
Eastern Europe and the promise that there will be no big troop buildup 
in the new states, does that mean that NATO's new members will be 
second-class citizens, second-class members?
    President Yeltsin. No, of course not, no one will think of these as 
being secondary states. No one is calling that. That's not what's 
involved here. However, I believe and Bill believes the same thing, Bill 
Clinton believes the same, that these decisions that can be taken, they 
will be taken by all leaders

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of these nations, which is extremely, extremely important. I already 
mentioned this.
    President Clinton. Let me say, Terry, in answer to the question you 
raised to me, emphatically no, this does not mean any new members would 
be second-class members. That's one of the things that we have committed 
ourselves to. There are no second-class members.
    What are the two most important things that you get if you're a 
member? One is the security guarantee, the mutual security guarantee. 
The other is a place in the military command structure. These will be 
available to any new members taken in.
    Now, we also want to make it clear that in addition to the security 
guarantee and participation in the military command structure, NATO is a 
different organization today than it was. We have a different mission. 
What is the most important thing NATO is doing today? Working in Bosnia. 
NATO has a major partnership with Russia in Bosnia. And a partnership, I 
might add, with a number of other nonmember nations who are in our 
Partnership For Peace, where we've done joint military exercises and 
other things.
    Now, on the two questions you mentioned--on the nuclear question, 
the NATO military commanders reached an independent judgment that, based 
on the facts that exist in the world today, they have no reason, 
therefore, no intention and no plan to station any nuclear weapons on 
member's soil. Look, we just announced an agreement here that will 
reduce nuclear weapons, if we can implement it, within a decade by 80 
percent below their cold war height, number one.
    Number two, the NATO members have just tabled a proposal on 
conventional forces in Europe which would put strict limits and would 
freeze the conventional forces we could have in Europe now, along with 
having strict limits in the Visegrad countries themselves, which would 
be the areas where you'd might expect an old difficulty to arise in new 
circumstances.
    So I think we are doing the right thing, the sensible thing. If it 
is reassuring to Russia, so much the better. We have a clear, new, and 
different mission for NATO in the 21st century, but clearly not second-
class membership.

Anti-Ballistic Missile Treaty

    Q. President Clinton, it is known that in your Congress there's some 
criticism frequently that you are a supporter of the ABM Treaty. Today's 
meeting, did that convince you to strengthen the ABM Treaty?
    President Clinton. Some people have criticized me in my Congress 
because I do support the ABM Treaty. Yes, that's accurate; they have. I 
do support the ABM Treaty. I think it's important. I believe in it. And 
we have, I believe, strengthened the chances that the ABM Treaty will 
survive by the agreement we have made today and the distinctions we have 
drawn between the missiles that are covered by the ABM Treaty and by 
theater defense missiles. I believe that very strongly.
    There are those in the Congress of the United States, but they are 
not a majority--let me emphasize, they are not a majority--who would 
undermine the ABM Treaty because they don't believe it's in our 
interest. I believe they're wrong. I believe that the ABM Treaty has 
served us well and will continue to serve us well, especially in view of 
the questions that we have clarified today between us.
    Laurie [Laurie Santos, United Press International].

Terrorist Attack in Israel

    Q. In light of today's attack on Tel Aviv, sir, you just said the 
Palestinian Authority is unalterably opposed to terror. Are you saying 
that there was no green light for terrorist attacks like Prime 
Minister----
    President Clinton. No, no. What I said is--let me clarify what I 
said. What I intended I say, what I believe I said was that the 
Palestinian Authority has to make it clear to the friends and to the 
enemies of the peace process that it is unalterably opposed to terror 
and must take all possible steps to make that clear and to prevent any 
terror from occurring. This is a formulation that has frequently been 
used in the Middle East, but everyone knows that no one in the Middle 
East can guarantee 100 percent protection against terror. But all the 
people who participate in the peace process should guarantee 100 percent 
effort against terror.

[[Page 403]]

    Q. What about what Prime Minister Netanyahu?
    President Clinton. Well, I can't--first of all, I can't comment 
decisively, one way or the other, on exactly what was or wasn't done 
because I don't think any of us know. What I think is very important is 
that no matter how strongly Mr. Arafat and the Palestinian people feel 
about the Har Homa decision, nothing--nothing--justifies a return to the 
slaughter of innocent civilians. It cannot be justified. And we have to 
have a clear and unambiguous position.
    And in the past, when Mr. Arafat has taken that position, I believe 
it strengthened him. I also believe that acts of terror undermine him 
because he, in the end, is the popularly elected leader trying to lead 
the Palestinian people to a peaceful resolution of these differences.
    So I have made that very clear just in the last couple of days, and 
we will continue to work to that end.

Russia-U.S. Relations

    Q. The question is to the Russian President. Boris Nikolayevich, you 
said that this meeting started a new phase for these U.S.-Russian 
relations. What precisely new was introduced into these relations?
    President Yeltsin. Well, first of all, we finally were able to 
determine our positions on issues of European security. We've come to 
settle our position on NATO, and we have described for ourselves the 
parameters of the NATO-Russia agreement.
    Secondly, there's an unprecedented reduction of nuclear weapons, 
that is of START III. That's 85 percent of the overall arsenal of 
warheads is being reduced in connection with that. That is significant. 
This is a very principled issue, and this encompasses not only our two 
countries but of the entire European continent and the whole world.
    And the question on economics reflects a completely different 
approach. We won't conceal this. And I think that Bill Clinton will 
excuse me if I perhaps am incorrect here, but I think that a certain 
restriction on questions, holding back on the American side on the 
Russian economic relations--there was, along the lines of the Ministry 
of Energy, on antidumping laws and also the Jackson-Vanik amendment, and 
many other items speak of the fact that the United States has not been 
that interested in developing a strong economic Russia or that trade 
would grow in a healthy way between Russia and the United States.
    Finally a breakthrough has been made. A joint statement has been 
signed. We've discussed these issues in great deal with President Bill 
Clinton. And on chemical weapons, that, too. Any issue we handled, we've 
been able to manage a major breakthrough. We didn't discuss small 
issues. We talked only about strategic issues, and on all five issues we 
were able to find an answer, we were able to find our common point of 
view. And that's what is reflected in our joint statements.
    President Clinton. If I might just support that question, because I 
think that's a question all the Americans and all the Russians and 
others will be interested in. What came out of this meeting that was 
different? One, the idea that there will be a NATO-Russia agreement that 
all the leaders will support. That's a significant thing. We agreed to 
disagree about the question of expansion, but we agreed that there must 
be a partnership between NATO and Russia going forward into the future.
    Two, the notion that Russia should play a larger role in 
international economic institutions and that if certain internal changes 
are made, which President Yeltsin has already announced his support for, 
then the United States will make a more vigorous effort to facilitate 
investment in Russia.
    And third--and I think almost unexpected even among us, we were 
working along here hoping this would happen--we resolved a number of 
roadblocks relating to START II and other related issues which permitted 
us to say that President Yeltsin would seek prompt ratification of START 
II, and we would together support guidelines for START III, which we 
would hope could be negotiated quickly after that, which would reduce 
the cold war arsenals by over 80 percent from the cold war height, to 
more or less 80 percent. These are dramatic and very substantial 
results, and I'm very pleased with them.
    Wolf [Wolf Blitzer, Cable News Network].

[[Page 404]]

    President Yeltsin. Just a moment, I'd like to continue for a second 
longer. You've touched on a very current issue which has to be clarified 
all the way.
    Well, you understand, of course, why it is that the State Duma has 
not yet ratified START II--because ABM was suspended. There was no 
belief that the treaty from '92 on ABM is not only being complied with 
by the Russian administration but in the future, conditions are being 
created which would not allow circumvention of the treaty. In other 
words, we, for the State Duma, were able to prepare grounds so that the 
Duma could positively look at the issue of ratifying START II.
    President Clinton. Wolf.

Russia-NATO Agreement

    Q. Mr. President, Mr. President, one of the most contentious aspects 
of a potential agreement or charter between NATO and Russia was whether 
or not it would have to be legally binding on the 16 members of NATO or 
would simply be a political statement of intent. This agreement that you 
hope to forge with NATO, do you expect that the legislatures, the U.S. 
Senate, for example, would have to ratify this agreement, or it would 
simply be a statement that President Clinton would support?
    President Yeltsin. As far as Russia is concerned, we intend to send 
this treaty and send this agreement to the State Duma for ratification. 
That's what our intention is.
    At the same time, we understand that if 16 states will have to 
coordinate this issue with their parliaments, this will take up many, 
many months. And therefore, we've come to an agreement that, given these 
conditions, it will be quite enough, of course, given the goodwill of 
these states, simply a signature of the leaders of these countries that 
would be affixed to this agreement. How the U.S. would act in this 
regard, let President Bill Clinton respond.
    President Clinton. If you look at the language, President Yeltsin 
has basically said it accurately. We think it's important to get this 
agreement up, get it signed, and get it observed--have it observed. And 
there are so many of the NATO countries. What we have called for is for 
each and every member country to make--and I believe the exact language 
of our agreement is, an enduring commitment at the highest political 
level. And President Yeltsin described to you how we will manifest that.
    If our Secretary General, Mr. Solana, and Foreign Minister Primakov 
succeed in negotiating this agreement within the timeframe that we all 
anticipate they will be able to, then we would expect to all meet 
somewhere and publicly affix our signatures and reaffirm our commitment 
to the terms of the agreement.

Changes in NATO

    Q. The question is to the U.S. President. Mr. President, you, both 
today and on earlier occasions, said that you intend to transform in 
some way the North Atlantic Treaty Organization. After today's meeting 
with President Yeltsin, what specifically do the United States plan to 
do to change the current structure of NATO? Thank you.
    President Clinton. Well, first let me point out we have already 
transformed NATO. When I became President there was no Partnership For 
Peace, for example. There were no joint exercises where you had Russian 
troops, American troops, Polish troops, French troops, others. We didn't 
have these sorts of things. We didn't have a Partnership For Peace with 
more than two dozen other countries regularly participating with us now 
in military planning and training and sharing and working together. And 
we certainly had nothing like our cooperation in Bosnia.
    I believe that the old NATO was basically a mirror image of the 
Warsaw Pact, and that's why I've been very sensitive to why the Russian 
people or the Russian leaders would wonder about what the new NATO is . 
There is no Warsaw Pact. There is no cold war. We just made an agreement 
to work to cut our nuclear arsenals by 80 percent from their cold war 
height, which I would remind you existed just 5 years ago.
    And what we need to recognize is there will be new security threats 
to Europe. And you can see them. You have dealt--we've seen them in 
Bosnia. We've seen them in the other ethnic, religious, and racial 
traumas that you have dealt with along your borders.

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You see it in the continuing disputes between nations within the 
European community.
    What we want to do is to provide a way for more and more countries, 
either as members or as members of the Partnership For Peace--Finland is 
a good example of an active member of the Partnership For Peace--or 
because of the special relationship of Russia and the special role 
Russia will play in the future of Europe and security in the context of 
the Russia-NATO agreement, we want to provide an opportunity within 
which all of us can deal with the security aspects of trying to create a 
Europe that is undivided and democratic for the first time in history.
    I would remind you, go back and read from the dawn of nation-states 
on the continent of Europe, there has never been a time when all the 
people were living under democratic governments and were free of foreign 
domination. That has never happened. So we are simply trying to create 
the conditions in which we can grow together.
    Will there be questions? Will there be skepticism along the way? 
Will there be uncertainty? Of course, there will be. But we are not 
attempting to draw a different dividing line in Europe, just somewhat 
further to the East. What we are trying to do is to develop structures 
that can grow and evolve over time so that there will be a united effort 
by free people to join their resources together to reinforce each 
other's security, each other's independence, and their common 
interdependence. And I believe we will succeed at that.
    Let's see, someone else in the back row here. Alison [Alison 
Mitchell, New York Times].

Ratification of Agreements

    Q. To both Presidents, both of you have had problems with your 
individual parliaments, and yet----
    President Clinton. Seems to be a curse of democracy.
    Q. Yes. You each have made arms control agreements here that, you 
know, the parliaments will want a say in. To Mr. Yeltsin, can you 
guarantee that the Duma will follow your lead and ratify this? And to 
Mr. Clinton, how can you assure Mr. Yeltsin that you won't have a 
rebellion in the Congress over the antimissile defense agreement?
    President Yeltsin. As far as Russia is concerned, I expect that the 
State Duma will make a decision based on my advice. [Laughter]
    President Clinton. Boy, I wish I could give that answer. [Laughter] 
Let me answer--you give me an opportunity, actually, to point out the 
full elements of this timetable on START III. And for those of you--if 
you haven't had time to study it, I want to make full disclosure here.
    Number one, I expect that our Congress, those who believe in the ABM 
system but who want us to be able to develop theater missile defenses, 
which may someday protect all of our friends in different circumstances, 
including our friends in Russia--who knows what use we will put to 
theater missile defenses when we have troops that have to be protected 
in the future--I would think that the Members of Congress who believe in 
the ABM Treaty but want us to be able to develop theater missile 
defenses, will be quite pleased by this agreement. I think that that is 
not where the problem could come.
    Let me explain what we agreed to today--and I did it, I might say, 
with the full concurrence of General Shalikashvili and Secretary of 
Defense Cohen, who is not here today, but we checked with him. In order 
to implement START II in a way that is economically feasible for Russia 
but does not in any way compromise the security of the American people, 
what we agreed to do in this framework is to set a date of 2007 for the 
full implementation of the reductions in START III but to delay the date 
of all the destructions in START II to 2007. We also agreed to move from 
the beginning of 2003 to the end of 2003 the time that Russia would have 
to deactivate the warheads covered by START II.
    Now, since our Congress ratified START II based on different target 
dates for the deactivation of the warheads, on the one hand, and the 
destruction--ultimate destruction of the missiles, on the other, we will 
have to go back to them, either separately or in the context of a START 
III agreement, and ask them to ratify that. And they will have a full 
opportunity to debate and discuss this.

[[Page 406]]

    But I have to tell you, when the Russians advanced this 
possibility--when President Yeltsin advanced this possibility with me 
today, the thought that the American people might be able to live in a 
world, within a decade, where the nuclear arsenals had been reduced by 
80 percent, and the thought that, in addition to that, accelerating the 
time we had anticipated it would take us to meet the START III targets 
would save our Department of Defense precious dollars that we need to 
secure our defense in other ways and will therefore enhance our national 
defense as well as reducing the threat, caused General Shalikashvili to 
recommend this to me, caused Secretary Cohen to sign off on it, and made 
me think it was a very good arrangement, indeed, for the Russian people 
and for the American people and, indeed, for anybody else who would be 
affected by what we do on this issue.
    So, yes, I've got to go back to the Congress. I believe they will, 
once they have a chance to fully review this, support the decision I 
have made today. It may take us a little longer than President Yeltsin 
indicated it would take him with the Duma, but I think we will both get 
a favorable result because this is so clearly in the interests of the 
Russian and the American people.
    Would you like to take one more?

Russia-U.S. Negotiations

    Q. Boris Nikolayevich, what's your thought on the version that the 
Russian giving way on the issue of NATO's expansion to the East will be 
paid by financial generosity of the West?
    President Yeltsin. First of all, I don't see it that way at all. I 
don't see this generosity at all. If in the statement on economic issues 
which we had just signed, if there are formulas in there that 
investments will be supported, investments going to Russia, and certain 
sums of money will be appropriated by the American side, that does not 
mean that this is assistance to Russia. This is assistance to the 
private sector for making investments in Russia. This is assistance to 
American citizens, not to Russia. Why do you see an exchange here? 
There's no exchange. And I categorically disagree with that formulation 
that in place of one we sort of bartered here and as a result of that we 
have come up with these ideas. I don't agree with that.
    I should say that even the order of looking at these issues--and 
we've held four tours lasting from 45 minutes to an hour and a half 
each--the order of looking at these issues was as follows: First, we 
looked at Europe security and NATO. Secondly, the ABM issue. Then we 
took up chemical weapons. Then we talked about START III, that is, the 
reduction of further strategic weapons. And only after that, we started 
talking of economic issues. I did not know that the American side was 
preparing this. But you see, first we resolved and discussed all of 
these issues, and only then we approached the economic question. This 
should tell you that this was not a case where we used this as a poker 
chip.
    President Clinton. I'd just like to support that. And let me say, 
first of all, what President Yeltsin said about the order in which we 
took these issues up is absolutely right, first. Second, I believe that 
the economic announcements which were made today are in the interest of 
the American people, both directly and indirectly. Let me deal with the 
indirect question first.
    Russia, in the end, cannot be the strong partner that we seek in the 
21st century and cannot be free to help create a very different future 
for Europe and for itself--a future in which we define our greatness by 
the way we treat other people and by our success in our free dealings, 
rather than our ability to dominate them--Russia cannot build that kind 
of future unless ordinary Russian citizens receive the benefit of free 
markets and democracy. That will not happen.
    Secondly, I believe that Russia has the potential to have enormous 
economic growth in a short period of time by attracting large flows of 
investment from around the world, if the elements that President Yeltsin 
outlined in economic reform and the legal changes which he has proposed 
to the Duma can be embraced. I would be irresponsible as President of 
the United States if I did not bring into play the Export-Import Bank 
and our other mechanisms for investing our money to make American 
investors competitive with investors from around the world for

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new economic opportunities in Russia. It would be irresponsible of me.
    If we do that and we put a lot of money in Russia, billions of 
dollars, will your people have more jobs and higher incomes? Yes, but so 
will Americans. And all the time I have to be looking at--it would be 
just like I can't walk away from Latin America. I would be irresponsible 
if we didn't try to invest in our neighbors in Latin America in the 
future. So that's the way I feel.
    A lot of the areas where you're going to grow in Russia--in the 
energy sector, just for example, just to take one area--are areas where 
American businesses have enormous expertise and literally decades of 
experience. We would be foolish if we walked away from the opportunity 
that you present to make money and have opportunity.
    So I entirely agree with what the President said, but I want to 
reinforce it from our perspective.
    The lady in the back there in the red dress, go ahead.

Finland's Nonaligned Status

    Q. I would like to ask something from both of you. How would you 
react, sir, if Finland would express its willingness to join NATO?
    President Clinton.  Maybe I should--you asked both. Since I 
discussed this with the President--he brought it up with me. President 
Ahtisaari said to me that he thought Finland had made the right decision 
to be a member of the Partnership For Peace and to maintain its 
independence and its ability to work constructively with Russia and with 
NATO nations and not be a member of NATO and that he had no intention of 
asking that Finland be considered for membership. But he thought that 
the policy of being able to be considered was a good one because it 
reinforced the feeling of independence and the security that Finland and 
other nations who decide to maintain relative independence and 
membership in the Partnership For Peace had. So I can do no more than to 
support the statement that your own President has made about this.
    President Yeltsin. I, too, would like to respond on this issue. I 
should say that the reason we respect Finland as a state--its nation, 
its people, and leadership--is the fact that Finland is implementing a 
course of a neutral state, of nonaligning itself to any bloc. This is 
very important. This creates a very stable and calm balance within the 
country. This facilitates good neighborly relations with Russia.
    We, with Finland, have a turnover of trade of 4.7 billion U.S. 
dollars. This is 40 percent of the entire turnover of trade. Find me 
another country that could equal this sort of turnover in trade with 
Russia. There is no other country. And for that reason, I believe--and, 
of course, this is the matter entirely of the people of Finland and its 
government, but that which the President of the Finnish Republic, 
President Ahtisaari, stated very clearly that he is not joining any 
blocs. This calls for the feeling of respect for him.
    President Clinton. Let me say, since we took an equal number of 
questions from the Russian and the American journalists but we took a 
Finnish question, let me, in the interest of fairness--Mr. Donovan (John 
Donovan, ABC News], you have a question. We ought to take one more 
question from an American so we'll be even here.

Russia-NATO Agreement

    Q. Thank you. I'll make it two questions, one very focused and one 
somewhat broader. [Laughter]
    President Clinton. No good deed goes unpunished here.
    Q. The focus question is this: In the Russia-NATO agreement, as 
envisaged, if there is disagreement--Russia disagrees with something 
NATO wants to do--does Russia have a veto power? The broader question is 
this. In the Second World War, it was very simple: We were enemies. We 
were allies, I meant to say. During the cold war, it was very simple: We 
were enemies. Today, what word describes this relationship where the 
situation is not so clear and not so simple?
    President Yeltsin. I can respond by saying that the way we solve 
these issues is by consensus. That's how it is today, indeed, among the 
NATO countries. And that's how it will be once we conclude an agreement 
between Russia and NATO, already with the participation of Russia.
    President Clinton. The short answer to your question is, a voice but 
not a veto. And

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the answer to your second question is that we are partners, and like all 
partners in any partnership, starting with a society's most basic 
partnership, a marriage and a family and going to business partnerships, 
there are sometimes disagreements. But partnerships are bound together 
by shared values, shared interests, and the understanding that what you 
have in common is always more important than what divides you.
    And so you work for the consensus that President Yeltsin outlined. 
And that's where we are, and I think that's exactly where we ought to 
be. And that's why we are not going to have the kind of cataclysmic 
bloodshed in the 21st century that we saw through three world wars, the 
cold war, and countless others in the 20th century. If we can stay with 
that attitude and work on it, we will have a Europe that's not only 
peaceful but free and undivided.
    Thank you very much.
    Q. How are you both feeling?
    President Yeltsin. Thank you. [Laughter]
    President Clinton. Great. I can tell you he feels great. He looks 
great, and he feels great. And I feel fine.

Note: The President's 139th news conference began at 6:45 p.m. at the 
Kalastaja Torppa Hotel. In his remarks, President Clinton referred to 
President Martti Ahtisaari and Prime Minister Paavo Lipponen of Finland; 
NATO Secretary General Javier Solana; Foreign Minister Yevgeniy Primakov 
of Russia; Chairman Yasser Arafat of the Palestinian Authority; and 
Prime Minister Binyamin Netanyahu of Israel. President Yeltsin spoke in 
Russian, and his remarks were translated by an interpreter. This item 
was not received in time for publication in the appropriate issue.