[Weekly Compilation of Presidential Documents Volume 34, Number 24 (Monday, June 15, 1998)]
[Pages 1074-1081]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
The President's News Conference With President Kim of South Korea

June 9, 1998

    President Clinton. Good afternoon. President Kim, members of the 
Korean delegation, let me first say again what a privilege it has been 
to welcome President Kim back to the United States and here to the White 
House. His remarkable life history reminds us that from Seoul to its 
sister city, San Francisco, people everywhere share the same aspirations 
for freedom, for peace, for the opportunity of prosperity.
    President Kim once wrote from his prison cell, ``If winter comes, 
can spring be far behind?'' This morning I reaffirmed to President Kim 
our deep confidence in his efforts to reform the Korean economy, 
liberalize trade and investment, strengthen the banking system, and 
implement the IMF program. As he has said on many occasions, open 
markets and open democracies reenforced one another. The United States 
will continue our strong support for Korea's reform efforts.
    In this context, I reaffirmed our commitment to provide bilateral 
finance if needed under appropriate conditions. We also discussed a 
number of concrete steps to promote growth in both our countries. We 
explored ways to more fully open markets and to further integrate the 
Republic of Korea into the global economy, including new discussions on 
a bilateral investment treaty. We signed an Open Skies agreement which 
permits unrestricted air service between and beyond our countries.
    I expressed my appreciation for the decision by Korean Airlines to 
purchase over $1

[[Page 1075]]

billion worth of Boeing airplanes. And I'm pleased to announce that the 
Overseas Private Investment Corporation has determined that Korea is 
again eligible for OPIC programs, in response to recent steps taken to 
protect worker rights. We also discussed the situation on the Korean 
Peninsula and reaffirmed the importance of our strong defense alliance.
    Korea is a safer place today than it was 5 years ago, with a reduced 
nuclear threat and improved dialog between North and South. The United 
States applauds President Kim's efforts toward reconciliation. Now we 
hope North Korea will respond further to President Kim's gestures and 
that the four-party talks will soon resume, because we think they also 
can make a crucial contribution to progress.
    I am pleased that yesterday, for the very first time the United 
Nations command and the North Korean military reached an agreement to 
hold general officer talks designed to resolve and prevent armistice-
related problems along the DMZ. On specific matters, I thanked President 
Kim for his commitment to provide peaceful sources of energy to North 
Korea, and I repeated our determination to resolve problems over funding 
heavy fuel oil for North Korea as part of our agreement, reached in 
1994, to freeze its nuclear program.
    We will continue to provide food and humanitarian assistance and 
urge our allies to do the same. And we pledge never to give up the 
search for missing Americans.
    President Kim and I discussed and shared concerns about the nuclear 
tests by India and Pakistan. Korea has lived with the threat of war for 
nearly five decades. The last thing the people of Asia need now is a 
nuclear arms race. South Korea has set a shining example for 
nonproliferation by abandoning nuclear weapons, accepting safeguards, 
and developing a peaceful nuclear program that brings benefits to the 
region.
    And the Korean people have demonstrated the universality of 
democratic aspirations, bringing a springtime of hope and encouragement 
to advocates for greater freedoms throughout Asia.
    Over the last half century, America has been blessed by the presence 
of Korean-Americans and Korean students living and learning with us. 
Soon we will be offering new work-study benefits that will allow Korean 
students here in the United States to support themselves while in 
school.
    Mr. President, your example reminds Americans what is very precious 
about our own democracy. I thank you for your visit. I thank you for 
your lifetime of commitment. When I go to Asia in 2 weeks, I will do so 
with a firm faith in the future of a dynamic and democratic part of the 
world, in no small measure because of your life and your triumphs.

    Thank you.

    President Kim. Today I had my first meeting with President Clinton 
since my inauguration. We engaged in a broad exchange of views on the 
situation on the Korean Peninsula and in Northeast Asia as a whole.
    At the time of President Clinton's first inauguration, the United 
States faced a difficult economic situation. In the 5 years since then, 
President Clinton has transformed the American economy into the world's 
most competitive, producing new jobs, reducing unemployment, and 
achieving a balanced budget. President Clinton has also been unsparing 
in his efforts to maintain world peace, from Bosnia to Haiti, and to 
promote greater respect for human rights and democracy.
    I attach great significance to my first summit meeting with a leader 
of such outstanding ability. In this meeting, President Clinton and I 
agreed to develop Korean-American relations to a higher level of 
partnership for the 21st century. We also agreed to work together to 
promote the security and prosperity not only of the Korean Peninsula but 
of the entire Asia-Pacific region, as well as the development of 
democracy in Asia on the basis of our shared values of democracy and 
market economy.
    President Clinton and I are strongly of the view that close Korean-
American relations are based above all on our security alliance for the 
preservation of peace on the Korean Peninsula. I explained my new 
administration's engagement policy toward North Korea and asked for the 
United States support and cooperation. President Clinton assured me of 
his full support and cooperation in this regard.

[[Page 1076]]

    We agreed to further consider ways of promoting reconciliation and 
cooperation and the building of a lasting peace regime on the Korean 
Peninsula through the pursuit of the four-party peace talks and South-
North dialog in a parallel and complementary manner. President Clinton 
and I agreed that progress in South-North relations and the improvement 
of U.S.-North Korean relations should be promoted in harmony. We also 
shared the view that the light-water reactor project in North Korea 
contributes to nuclear nonproliferation efforts on the Korean Peninsula 
and in the world as a whole, as well as to the strengthening of peace 
and security in Northeast Asia. We thus agreed to continue to cooperate 
closely to promote the project.
    President Clinton and I also held in-depth discussions on the 
measures to overcome the current economic crisis facing our nation. I 
expressed my gratitude for the timely assistance of the United States 
during our foreign exchange crisis. I explained the results of our 
efforts to stabilize the financial sector and reconfirmed our resolve 
for a continued reforms. I explained the efforts of our Government to 
promote active and bold openings to induce foreign investments, and to 
institutionalize these efforts, we agreed to work out a bilateral 
investment treaty.
    I also explained that for an early resolution of the economic crisis 
Korea needs increased investment and financial cooperation, and asked 
that the United States take a leading role in the assistance for our 
efforts to overcome the economic crisis.
    President Clinton welcomed our efforts to overcome the financial 
crisis, including the economic reform measures. He said that our 
overcoming the economic crisis will have a positive effect on the 
resolution of the economic crisis in Asia and is in the interest of the 
United States, and that the United States will be unsparing in rendering 
all possible assistance.
    President Clinton and I both strongly feel that the IMF, IBRD, and 
ADB have played important roles in enabling Korea to overcome the 
economic crisis. President Clinton and I also share the view that all 
economic trade issues between our two countries should be resolved in a 
mutually beneficial and amicable way through dialog and consultation, 
and agreed to work together toward that end.
    Thank you.
    President Clinton. Thank you very much. Now we will alternate 
questions. I will call on a member of the American press corps, and then 
President Kim will call on a member of the Korean press corps. And we'll 
begin with Helen [Helen Thomas, United Press International].

Sanctions Against North Korea

    Q. I have a question for each President. President Clinton, is the 
United States ready to lift sanctions against North Korea as proposed by 
President Kim?
    President Kim, when will American troops be able to come home from 
the DMZ?
    President Clinton. You're two for two there. First let me say that 
we discussed this matter in real candor. President Kim did not ask me to 
lift sanctions. What he asked me to do was to work with him to support a 
policy of reciprocity which would enable us to move forward with the 
reconciliation of the North and the South. And I said that I would be 
prepared to do that.
    As you know, with regard to the specific sanctions, there are 
basically three categories of sanctions the United States has with 
regard to North Korea. At least one, and perhaps two whole categories 
would require, in my view, some legislative change to be modified. But 
there is some executive flexibility here. What I told President Kim I 
would do is to work with him.
    I am encouraged at the bold vision and the confidence that he brings 
to this, and the genuine concern for the welfare of people in both 
nations. And I think that his initiatives, plus what we can do in the 
four-party talks with some issues that properly belong there, can really 
lead us to some progress here in the next few months and years. So I'm 
very hopeful.
    President Kim. I do not intend to say anything that would interfere 
with American policymaking, but I do wish to say that our new government 
will approach the North Koreans based upon a strong security alliance 
with the United States but with flexibility and

[[Page 1077]]

to forge an atmosphere in which we can induce the North Koreans to open 
up, to encourage the moderate elements in North Korea.
    We have nothing to fear from North Korea. To induce them to open up 
will be beneficial to the interests of our two countries, but to the 
peace of the Peninsula and Northeast Asia in general. Thus, if the 
United States should ease sanctions against North Korea, the when and 
how and the content would be a decision for the American Government to 
make, but we would not oppose and we would cooperate.

Assistance to North Korea

    Q. A question to Mr. Clinton, President Clinton. According to the 
Geneva agreement, the United States is to provide crude oil to the 
North, and South Korea plays a central role in providing the light water 
nuclear reactors, but I understand the American Government has requested 
our Government to share some of the costs of the crude oil being 
provided to North Korea. What is your position now?
    President Clinton. The North Koreans, as you probably know, have 
asked for the provision of crude oil and more under the agreement. And 
in the last few--several days, I have been able to invoke some 
provisions of American law which will permit me to fulfill our 
commitment there. Once we fulfill our commitment there, then we have to 
see where we are with the North Koreans and whether others will have to 
do more.
    But you're correct, the most important thing that President Kim can 
do is to reaffirm the commitment of South Korea to fund 70 percent of 
the light water reactor, which he has done. And so I believe he has 
fulfilled his commitment, and I think I'm now quite confident that I 
will be able to fulfill America's commitment under this agreement.
    Terry [Terence Hunt, Associated Press].

Tobacco Legislation

    Q. Mr. President, the tobacco bill appears on the verge of collapse 
in the Senate. Today the Senate rejected an attempt to force a vote on 
the bill. Would you accept a limited measure to reduce teen smoking and 
at the same time meet Republican objections that the McCain bill taxes 
too much and spends too much?
    President Clinton. Well, first of all, I don't agree with that. I 
think it's clear that one of the things that will lead to a reduction in 
teen smoking is making cigarettes more expensive. And secondly, it's 
clear that we need to raise some funds to help States and the Federal 
Government defray the costs of paying for health bills related to 
smoking and to do the necessary medical research and to have the anti-
smoking programs.
    Now, having said that, it's my information--and yours may be more up 
to date than mine, but I did talk to Senator Lott and Senator Daschle 
this afternoon, and we're working hard to get this thing back on track 
and get into a position where a good comprehensive bill can pass the 
Senate. And as of just a few minutes before I came over here, I think 
there may be some developments this afternoon and this evening which 
will make that possible. And so I'm just going to hang on and hope for 
the best and keep working at this.
    Q. What are those developments?
    President Clinton. Well, we'll see, we'll see. We're working on it. 
But I do believe that the possibility of getting a comprehensive bill 
out of the Senate is greater now than it was this morning. There are 
still problems, to be sure, but we're getting closer to, I think, a 
principled compromise. I hope we are.
    President Kim, would you like to call on someone?

Four-Party Talks

    Q. The two of you have said that you will pursue the four-party 
talks and enter Korean dialog in harmony. Do you recognize Korea's 
leading role in this process?
    President Clinton. [Inaudible]--the difficulties on the Korean 
Peninsula, and I think when there is movement, as there is now, being 
led by the Korean President, the United States should do all in its 
power to support that movement. That is what we have tried to do in 
other parts of the world. That is the sort of thing that led to a 
successful conclusion recently to the Irish peace process, with a vote 
of the people in Northern Ireland and Ireland.

[[Page 1078]]

    I do think there are some discrete issues which, because of the 
terms of the armistice, can perhaps best be handled in the four-party 
talks. But the lead in all this should be the lead taken in the 
resolution by the parties themselves, between North and South Korea. And 
we will do what we can to support President Kim in that regard, and to 
support the North Koreans insofar as they respond in a positive way.
    Would you like to answer, Mr. President?
    President Kim. As President Clinton has said, I agree entirely. The 
nonaggression, arms reduction, these should be dealt with in the four-
party talks. As for inter-Korean exchanges and cooperation, that should 
be dealt with in the bilateral inter-Korean dialog. The bilateral talks 
can be taken within the four-party framework or outside of that.

Situation in North Korea

    Q. Mr. President--actually for both of you gentlemen. I wonder if 
you could give us your assessment of the situation in North Korea and 
just how dangerous the food shortages there make it. And also if the two 
of you could share your thoughts about the leader of North Korea, Kim 
Chong-il, who has remained kind of a mystery to much of the world. Do 
you feel he's someone who can be trusted?
    President Kim. First of all, regarding Kim Chong-il, I don't think 
anybody knows well enough about him. Based upon our experience it's very 
difficult to say that you can trust a communist. But we feel the need to 
negotiate, and once you've reached an agreement, to hold them up to that 
agreement.
    The North Korean regime at present is faced with many difficulties 
still. It is relatively stable, and I don't think it is going to 
collapse all that easily. But of course, the food situation, the overall 
economic situation is very bad. Normally, you could say that you cannot 
continue a regime based on such a difficult economic situation, but our 
intent is to persuade North Korea, to make it feel safe in opening up 
and so that it can resuscitate itself, follow the model set by China and 
Vietnam, and so that it can overcome such a hard situation at present.
    If it remains in such a hard situation, it may decide to go the road 
of military provocation, or if it stays the course, it may simply 
collapse and that will fall on our lap. So, for peace, for stability on 
the Korean Peninsula, we need to induce North Korea to open up and to 
regain the strength to live and grow on its own. And we have to help it 
in doing so.
    President Clinton. I agree with President Kim's assessment of the 
leadership in North Korea. Let me just say, with regard to the food 
situation, it is serious, and we are concerned about it. The United 
States and South Korea have led the way in providing food to North 
Korea. And I'm actually quite concerned that the U.N. appeal which goes 
out periodically has not--to other countries--has not been fulfilled. 
And so I would hope that other countries that could also make a 
contribution that typically have when the U.N. has made such appeals, 
will do so. I think we have to do whatever we can to avoid severe 
malnutrition or worse.
    But ultimately, the answer is not an annual food appeal. Ultimately, 
the answer is structural change in North Korea that would permit them to 
feed themselves and to purchase whatever foodstuffs they need from 
beyond their borders that they cannot grow. And that, I think, requires 
a positive response to President Kim's outreach, a rapprochement, a 
beginning of a resolution and, as he said, an opening up.
    It was very interesting--I never heard anyone say it quite this way 
before--President Kim said to me this morning that if China can begin to 
open up and Vietnam can begin to open up and they can have very good 
results from doing so, then it's predictable that North Korea would get 
the same kind of good results if they would take the same path.

Korean Peninsula Energy Development Organization

    Q. Regarding KEDO and the sharing of the cost, 90 percent for Japan 
and Korea; the remaining 10 percent is the problem. Korea has asked 
America to share that 10 percent. The other question is on economic 
cooperation. You agreed on an investment treaty, and you promised 
continued assistance and economic cooperation. Have there been other 
concrete pledges of assistance regarding the Korean economic situation?

[[Page 1079]]

    President Clinton. Well, of course, we were very involved in the 
early assistance to Korea, and we have an emergency commitment should it 
be needed. My belief is that it will not be needed, because I think your 
country will do quite well now. In addition to that, I committed today 
to ask the Secretary of Commerce, Mr. Daley, to organize a trade and 
investment mission to Korea as soon as it can practically be carried 
out. And we will continue to do that.
    With regard to KEDO, we have actively worked not only to secure 
funding to implement the accord we made with North Korea to suspend its 
nuclear program in all of its aspects but also to make sure the United 
States gave as much as we reasonably could. And this is a conversation 
that I hope President Kim will also be able to have with the leaders of 
the Congress, because I think there is a great deal of support for him 
in our Congress, even though there has been from time to time lukewarm 
support for KEDO. And I think many of our Members of Congress wrongly 
have viewed KEDO as something we were doing for North Korea instead of 
something we were doing for the stability of the Korean Peninsula, the 
safety and security of our allies and friends in South Korea and for the 
cause of defusing nuclear tensions everywhere.
    In the wake of these nuclear tests in India and Pakistan I would 
think everyone all over the world would feel a bigger interest in seeing 
the agreement with North Korea be fully implemented.
    Wolf [Wolf Blitzer, CNN].

China

    Q. Mr. President, a two-part question on your policy toward China. 
The first part is there is a broad range of human rights activists, from 
Gary Bauer on the right to Kerry-Kennedy-Cuomo on the left who have 
appealed to you to avoid a visit to Tiananmen Square during your 
upcoming visit to China. Will you go to Tiananmen Square, as some of 
your advisers say you must given the protocol of the Chinese Government?
    And the second part of the question is, why did you resist the 
advice of the Justice Department last February and give Loral a license 
to export another satellite to be launched on a Chinese missile, even 
while the Justice Department was in the midst of a criminal 
investigation of Loral for allegedly providing technology information to 
China?
    President Clinton. Well, let me answer the questions in reverse 
order. I didn't resist the advice of the Justice Department. I took the 
advice of the National Security Council, the Defense Department, the 
State Department, and the Arms Control and Disarmament Agency. The 
statute gives the State Department the responsibility to make a 
recommendation, and then gets the opportunity--the Defense Department 
and the Arms Control and Disarmament Agency are given the opportunity to 
concur. The National Security Council also gave the Justice Department 
the opportunity to make whatever comments they wanted, evaluated all 
that, and concluded that I should approve the satellite. It was sent to 
me in a decision memo which I approved.
    And as you have seen from the practice in previous administrations 
and from all the evidence, it was, from my point of view, a pretty 
routine decision that I thought, on balance, if all those agencies felt 
that it was the right thing to do and it furthered our national 
interests, that I would do so.
    Now, in terms of the trip to China, my own view is that if this is 
going to be a state visit to China and I am going to be the guest of the 
Chinese, that they should be designing the terms of the arrival 
ceremony, not me. I simply don't accept the proposition that observing 
their diplomatic protocol in any way undermines my capacity to advance 
the principles of the United States.
    I appreciated the encouragement reflected in the ad I saw in the 
paper from a rather wide array of people, with the letter from Billy 
Graham and the statement from the Dalai Lama. President Kim and I talked 
about it today. I think in view of the--again I would say, in view of 
the recent economic events in Asia and the nuclear tests on the Indian 
subcontinent, it should be clearer than ever before that we have a 
strong national interest in developing a constructive, positive 
relationship with China.
    Because of that relationship, I think it has been made more likely 
that political descent would be more respected--several political

[[Page 1080]]

dissidents have been released from imprisonment since President Jiang 
came here--and I intend to make our views clear and unambiguous. But I 
think that what Americans should want me to do is to make sure that I am 
as effective as possible not only in advancing our interests but in 
standing up for our values. And I'm going to do what I think is likely 
in the short run and over the long run to make our country the most 
effective.

South Korean Social and Economic Policy

    Q. [Inaudible]--increase of social vulnerables and thus it is very 
natural for Korean Government to try to use their own budget to help the 
social vulnerables. Having said that, one-third--roughly one-third of 
Korean budget is devoted to defense budget. And I want to know are you 
in favor of an idea that we use the defense budget, to use that money to 
help the social problems?
    And just one more question. I believe you have said that you have 
talked with President Kim that to promote economic growth better, so 
what would be special measure to promote economic growth? Do you think 
that Korea might need a kind of Korean version of New Deal plan to 
promote economic growth, that Korea might need a kind of--to stimulate 
Korean economy?
    President Clinton. Let me try to answer both questions, and if I 
might, I'd like to answer the second question first.
    Your country has had a remarkable record of economic growth by any 
standard over the last few decades. I believe what has happened here is 
a bump in the road if you stay with the necessary reforms to reach the 
next level of development. All the evidence we have, not just concerning 
Korea but even concerning the United States and then countries that have 
a far smaller per capita income than Korea, is that no Government 
program can offset the flight of investment capital out of a country. 
And whether anyone likes it or not, all this money can move around the 
Earth in a matter of seconds. Therefore, I believe that the best social 
policy for Korea right now is an economic policy that will restore real 
growth as soon as possible. That is what will drive down unemployment. 
It will drive up family incomes. It will help families stay together and 
take care of older family members and do all the things that make a 
society a good society.
    If I could do anything in the world for Korea just as a magician, if 
I were dictator of the world, I would restore high growth rates to your 
country tomorrow, and then the Korean people themselves would work 
through these problems in no time.
    So that brings me to the next point. I think, therefore, that the 
most important thing I can do as the United States President and the 
friend of Korea is to restore the Overseas Private Investment 
Corporation guarantees for financing to make sure that you know there 
will be emergency support in the event you need it--that will make it 
less likely that you will need it--to get this investment mission going 
to your country, and to do anything else I can to try to support growth.
    Now, your first question. I have to answer that the way President 
Kim answered the first question to me. That is, no President of one 
country can make a judgment about the national security needs of another 
country. But I will say this: Obviously, if the security situation in 
Korea improves to the point that you can reduce defense spending as a 
percentage of overall spending, that frees up investment for the other 
human needs of the country to build a stronger social contract.
    However, security always comes first. Therefore, as an outsider I 
would say what President Kim is doing, in showing the vision and the 
confidence in your people to reach out to North Korea and encourage them 
to change and encourage a reduction in tensions, is the path most likely 
to change the security reality. As the security reality changes, then 
you can change the security budget. But the budget must follow the 
reality. And I think he's doing that.
    Again, I would encourage the leader of North Korea and all those in 
influence there to respond to his farsighted overtures, and let's get 
this show on the road, as we say in America.
    Thank you very much.

Kosovo

    Q. Kosovo, sir? [Inaudible]
    President Clinton. If I could say one word about Kosovo----

[[Page 1081]]

    Q. Whether U.S. forces might be needed?
    President Clinton. Well, I have authorized and approved accelerated 
NATO planning. And we are supporting and working with the British to get 
the strongest possible resolution through the United Nations. We're 
still trying to work out the wording of the resolution, but we have no 
dispute over the phrase that you have focused on, which is to use all 
necessary means to try to avoid ethnic cleansing and the loss of human 
life.
    Let me say, all of you know that this is a very thorny problem, and 
while we're all worried about--deeply worried about seeing a repeat of 
what happened in Bosnia, we know there are some factual and legal 
differences between the two entities. But the main thing is that I am 
determined to do all that I can to stop a repeat of the human carnage in 
Bosnia and the ethnic cleansing. And I have authorized, and I am 
supporting, an accelerated planning process for NATO. And as I believe 
both the Secretary of State and the Secretary of Defense said yesterday, 
we have explicitly said that we do not believe any options should be 
taken off the table.
    Thank you.

Note: The President's 160th news conference began at 3:40 p.m. in Room 
450 of the Old Executive Office Building. President Kim spoke in Korean, 
and his remarks were translated by an interpreter. In his remarks, the 
President referred to evangelist Rev. Billy Graham; and President Jiang 
Zemin of China.