[Weekly Compilation of Presidential Documents Volume 38, Number 13 (Monday, April 1, 2002)]
[Pages 498-504]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
 The President's News Conference With President Alejandro Toledo of Peru 
in Lima, Peru

 March 23, 2002

     President Toledo.  This is an historic visit made by a friend 
representing a country with which we have had a historical relationship. 
It is not a merely diplomatic visit; it is an official working visit. 
And we have touched on substantive issues which range from the open 
struggle against poverty, a war without quarter against terrorism and 
drug trafficking. I repeat, a war with no ambiguities whatsoever, 
against terrorism and drug trafficking. We've touched on issues of 
trade, education, even the Peace Corps.
    But my friend George Bush, this Peru is a country that welcomes you 
with open arms. We are renewing our friendship, and this is the 
beginning of a new era in the relationship between Peru and the United 
States. And I'm extremely happy that the two of us are able to begin 
this relationship.
     I know you seem younger than I am, but we are both 55 years old, 
and we have a long way ahead of us to work together. I know that we both 
have the energy and the stubbornness, particularly with regard to the 
issue of terrorism and drug trafficking, because your country, just like 
mine, loves peace. It appreciates life. And we are united on this.

[[Page 499]]

 And as of today, we have a strategic alliance of hope for the future.
     My friend, welcome to my country.
     President Bush.  Gracias, Senor Presidente. It is an honor for me 
to be the first sitting President of the United States to visit Peru. I 
want to thank you for the invitation. It's a greater honor for Laura and 
me to come here as guests of a leader who symbolizes Peru's 
revitalization.
     President Toledo and I have now met three times. At each meeting, 
I've been impressed by his commitment to democracy and his determination 
to improve the lives of the people of Peru. Peru is on the path toward 
greater freedom and greater prosperity, and America will be the partner 
in this progress, Mr. President.
     Earlier today our two Governments signed an agreement that will 
reintroduce the Peace Corps to Peru, after an absence of nearly 30 
years. The first volunteers will arrive in August, a symbol of the 
stronger ties between our people and the stronger relationship between 
our Nations.
     This relationship is based on common values and common interests. 
Our nations understand that political and economic progress depends on 
security and that security is impossible in a world with terrorists. 
Peruvians have been reminded again this week of the terrible human toll 
of terror. On behalf of the people of the United States, I express our 
deep sympathy for the victims of the recent bombing and our deep 
sympathy for their loved ones.
     President Toledo and I share a common perspective on terrorism: We 
must stop it. Since September the 11th, Peru has taken the lead in 
rallying our hemisphere to take strong action against this common 
threat. And I want to thank the President for his leadership and his 
strong support.
     Our nations understand that freedom is only as strong as the 
institutions protecting it. The United States is actively supporting the 
President's efforts to strengthen Peru's democratic foundations. And we 
will continue to support the work of Peru's Truth and Reconciliation 
Commission, which is helping correct the abuses of the past and set the 
course for a better future.
     President Toledo and I both understand the importance of providing 
economic opportunity to all our citizens as a hopeful alternative to the 
drug trade. We discussed ways to make the assistance that the United 
States provides under the Andean Regional Initiative more effective. And 
I emphasized to the President my commitment to renew and extend the 
Andean Trade Preferences Act. The United States House of Representatives 
has moved this legislation. It is stuck in the Senate, and I urge the 
Senate to act.
     President Toledo and I have agreed to renew discussions on a 
bilateral investment treaty and to complete a debt-for-nature agreement 
to help Peru reduce debt payments while it protects its biodiversity. I 
also informed the President that Secretary of Commerce Don Evans will 
lead a trade mission to Peru and the Andean region later this year. By 
building these ties of commerce, both our nations create more jobs, more 
investment, and more benefits for workers and consumers.
     President Toledo and I believe that education is the key to 
participation in the global economy. The President's own path in life is 
a lesson in how education opens up doors to opportunity. He is 
passionate on the subject. I love his passion, and I appreciate his 
commitment. And I'm pleased to announce that our country will help 
establish an Andean Center of Excellence for Teacher Training, with a 
base here in Peru. The center will support President Toledo's goal of 
quality schools with quality teachers, that give more Peruvians the 
literacy and learning they need to succeed.
     I've also directed the U.S. Commerce Department and the U.S. Trade 
and Development Agency to establish an Andean E-Business Fellowship 
Program, to give more high-tech professionals from this region the 
chance to learn more about information technology.
     President Toledo and I have a strong relationship. I'm inspired by 
his life; I'm inspired by his story; I'm inspired by his leadership. I'm 
impressed by Peru's progress, and I'm very confident of Peru's future.
     Thank you, sir.
     Q. Mr. President----
     President Bush. Which one? [Laughter]

[[Page 500]]

 Counterterrorism Efforts

     Q.  You, sir. Given increasing evidence that the FARC is now 
operating in Peru, will you be willing to provide President Toledo extra 
assistance in fighting the war against terrorism here, should he ask for 
it? And are you concerned that what was once a regional problem in 
Colombia or something restricted to Colombia is now spreading across 
Colombia's borders and threatening its neighbors?
     President Bush.  We discussed the neighborhood at length today. 
President Toledo told me that he is--now that he's done a very good job, 
or the country's done a good job, of making sure that relations with 
neighbors north and south are peaceful, that he is moving troops and 
making decisions to prevent terrorists from coming into his country from 
Colombia. And we will help him in this effort. That's part of the reason 
why we're here--is to support our mutual desire to fight terror and to 
help this good democracy thrive.
     Later on today we'll be talking with Presidents from--and one Vice 
President--from the Andean nations. And we'll be discussing our common 
desire to prevent terrorist groups like the FARC from holding people and 
nations hostage. And I'm absolutely convinced, having talked to the 
President three times, that he will do everything in his power to rout 
out terror, not let it take hold, and preserve the institutions that 
make Peru a beacon for democracy.
     Q. [Inaudible]
     President Toledo.  No, the evidence that we have is--I repeat, the 
evidence that we have indicates that there is no transfer of the FARC 
into Peru. However, we are adopting every measure possible. The Minister 
of Defense was at the border very recently. We took our bases that were 
along the border with Ecuador--where, after signing the peace agreement, 
there is no need for their presence--we removed them, as a precautionary 
measure, over to the border with Colombia.
     As President Bush just indicated, this is a joint task. What 
happens to Colombia affects us, and vice versa. But here, too, we're 
partners. And I think that the issues that have to do with the Andean 
community are issues on which President Bush is extremely interested, 
and I'm sure that we will be working together on these. We are going to 
work together on this; I'm sure of that.

 Peru-U.S. Relations

     Q. President Bush, you granted an audience recently to my daily, El 
Comercio, at the White House, and you said in that interview that Peru, 
for the United States, is not only a friend but an ally. I'd like to ask 
you, beyond trade preferences and the commitment to struggle against 
drug trafficking, what will be the major elements in your administration 
that would highlight this different relationship you want to have with 
Peru? For example, would you open up an antechamber, so to speak, for 
Peru to come into a free trade agreement negotiation with the United 
States?
     And let me ask President Toledo, with regard to the issue of shared 
responsibility in the fight against drug trafficking, would you take on 
the commitment, before President Bush, to establish a control office 
that would monitor whatever the United States does not comply with?
     President Bush.  I listed quite a few things in my opening remarks 
about our relationship. I believe strongly that if we promote trade and 
when we promote trade, it will help workers on both sides of this 
issue--it will help Peruvian workers, help U.S. workers.
     The Andean Trade Preference Act is a cornerstone of good policy, as 
far as I'm concerned, and it's a cornerstone of good relations. We 
talked about a treaty on investment; that could be the beginning of a 
trade treaty. The President brought it up. He asked whether or not we 
would consider it. I said we'll take it back and discuss the issue when 
I get back to Washington, D.C.
     There's nothing more important than fostering good economic 
relations. I mean, the best way for people to get lifted out of poverty 
is a job. And the best way to encourage jobs is through trade. I mean, 
what we're beginning to realize in the world is, development aid is 
important, but development aid pales in comparison to the amount of 
capital that's generated through trade in the marketplace, in the 
private sector. And countries that open markets and countries that trade

[[Page 501]]

freely are countries where the people are more likely to be able to 
succeed.
    And I would not discount the importance of our relationship when it 
comes to fighting terror. The world has called us to action. This is a 
new era. We're fighting a new kind of war, and we're strong allies in 
that war. And when we win, our peoples will be better off. You can't 
alleviate poverty if there's terror in your neighborhood. It's 
impossible to achieve what we want if terrorists run free.
     And so I think one of the best things we can do to lay the 
foundation for a better tomorrow is to be tough and firm and not yield 
to threat. And that's exactly the way the President feels, and I can 
assure you that's the way I feel.
     President Toledo.  I think that in the war against drug trafficking 
and terrorism, we are partners, not simply through conviction, my good 
friend, but because we, ourselves, have experienced it. We have 
experienced the effects of terrorism here for 20 years; the United 
States, on September 11th. And I have here my friend Colin Powell, with 
whom we have a very solid human relationship because, in this very 
palace, we were witnesses to the news of September 11th while we were 
having breakfast.
     On this issue, we are partners; I am stubborn. I am stubborn, and I 
believe it is not incompatible to respect the law and to be strong-
handed with regard to the issue of terrorism and drug trafficking. I do 
know there's been a decision from the U.S. Government to increase 
support for the struggle against drug trafficking, and I appreciate that 
enormously. We still have a long road ahead to walk together in this 
struggle, but we will do it.
     And Mr. Journalist, I want to underscore something that was 
referred to by President Bush. Trade preferences is an issue on which 
President Bush has demonstrated--and I am a witness--his will for 
congressional approval in the United States. The separation of powers 
makes it impossible for Presidents to control congresses--just like I 
don't control mine. But that's the way democracy works.
     Nonetheless, we have gone beyond trade preferences--Andean trade 
preferences. I have asked of President Bush that he consider an 
initiative for trade, for bilateral trade and investment within the 
framework of the Andean community. And we are going to be talking to our 
colleagues in just a few minutes.
     I think it's important because trade is a synonym for work, and 
work is a way to deal with poverty. Through work, education, and health, 
we can eradicate poverty. We are partners on the issue of trade, on the 
issue of drug trafficking and terrorism, in the defense of democracy and 
of human rights, my friend--human rights.

 Peru-U.S. Drug Control Cooperation

     Q.  Mr. President, the Peruvians have expressed an urgent desire 
for the resumption of U.S. drug interdiction flights in Peruvian 
airspace. You told us yesterday in Monterrey that the issue was under 
rigorous review. My question to you, sir, is it your ultimate goal to 
see a resumption of those flights? And what preconditions would you put 
on those flights before authorizing resumption?
     And for President Toledo, if I could, sir, if you are to expect a 
maximum effort at a partnership with the United States to eradicate drug 
trafficking, why won't you make the same commitment to coca eradication 
as your neighbors Bolivia have? You've talked a lot about the problem 
being drug trafficking, but you have not made the same commitment on 
coca production, sir.
     President Bush. We are reviewing all avenues toward an effective 
policy of interdiction. As you know, we had a terrible situation where a 
young mom and her daughter lost their life; that caused us to step back 
to take a look at our policy at home and then to work with the Peruvian 
Government to figure out how best to be effective at interdicting drugs.
     And so the discussions are ongoing. And we want to make sure that 
when we work with countries like Peru, that we achieve the common 
objective, which is to make it hard for those narcotraffickers to move 
through their airspace, across their land, or in oceans.
     I want to say something about--there's a lot of talk about 
interdiction, and there should be. And there's a lot of talk about 
battling the narcotraffickers here in the Andean area, and we will. But 
our country has

[[Page 502]]

an obligation as well, not only to provide support and help. The 
President mentioned that we have expanded the direct aid to Peru on this 
issue, which we have. We've tripled it, up to about $200 million--about 
195 million, I think it is. But the best thing that America needs to do 
is reduce demand for drugs. We've got to do a better job of convincing 
our own country to quit using them. As demand for drugs goes down, it 
will take the pressure off of our friends in Peru.
     So we've got a double obligation, it seems like to me: on the one 
hand, to provide help and aid that's effective and will work. And that's 
exactly what we spent a long time talking about, in all three of our 
meetings. But I want to remind our Peruvian friends that we've got to do 
a better job at home of convincing Americans to stop using drugs. And 
part of our drug initiative will be to focus on the demand side. Less 
demand for drugs will mean that the supply for drugs will be less 
urgent. And that will in turn help the region.
     President Toledo.  Look, my friend, let me deal with your question 
head on. In 1990, the number of hectares with coca cultivation was 
approximately 140,000 total. Today, we are down to 34,000 hectares, 
where we have coca cultivation. Enormous progress has been made.
     I know it's not enough. We have a long path ahead of us yet. And we 
have to do this together. I know that the drug traffickers have become 
more sophisticated over time; they have more high-tech capabilities. And 
now we, too, have to push forward in that direction.
     I want to be very open, and I apologize to my friend President Bush 
now. We are not fighting against drug trafficking in order to satisfy 
the United States or Europe. Drug trafficking, in partnership with 
terrorism, is an issue of national security. It's an issue of national 
security. On Wednesday they killed 9 people, 9 of our brothers and 
sisters, and there are 30 people wounded. I have publicly stated, and I 
want to repeat this: We are not going to let this stand.
     So let me respond to you. We have met a substantial reduction. We 
still have 34,000 hectares to go. But we are going to do this together.
     Final point. I think President Bush is extremely sincere--he's 
extremely sincere and honest when he recognizes that as long as there is 
a demand out there, there will be a supply. As long as there are 
consumers, there will be producers. And so, together, we need to work on 
reducing the number of consumers, cure them better, make them better. 
And we need to reduce the amount of hectares under cultivation.
     And, footnote here, it's also true that the statistics indicate 
that although levels are still low, there is an increase in the 
consumption of cocaine among youth in Peru. And that is also part of our 
concern, with regard to national security.

 U.S. Assistance to Peru

     Q.  President Bush, you are in a region now that's been devastated 
by terrorism and subversion and drug trafficking for over three decades. 
You're offering us the Peace Corps. I would ask you if you're willing, 
as President of the most powerful nation on Earth, to lead a Marshall 
plan for South America?
     President Bush.  I appreciate that. I think I said more than just 
the Peace Corps, if I'm not mistaken, in my opening comments. Obviously, 
our nation is committed to this part of the world. I've come to Peru, as 
the first sitting President, to express our solidarity with Peru and the 
people, as well as express my appreciation for a reformer who got 
elected who's willing to defend the institutions that make democracy go.
     I repeat, if you'd like me to--go through the litany of things I 
just said: the Andean Trade Preference Act; the bilateral action on 
investment; money for education; money to fight drugs. We've tripled the 
amount of money--I believe it's from $50 million up to $195 million 
available. And so I think our commitment is--I think our commitment 
speaks for itself. And I appreciate so very much the chance to come and 
explain it to the Peruvian people, that ours is more than just words; 
ours is deeds and action.

 Situation in the Middle East

     Q.  Good afternoon, President Bush. Buenas tardes, Senor 
Presidente. President Bush, many lawmakers in Congress are growing 
increasingly concerned about your policy in the

[[Page 503]]

Middle East, wondering if the very talk of potential high-level 
negotiations involving Vice President Cheney, specifically, with the 
Palestinian leader, Yasser Arafat, might not in fact send a signal that 
terrorism against Israeli civilians can achieve some limited political 
aims. I'd like to ask you, sir, why you're contemplating that, and why 
those who wonder if that is not the case are incorrect?
     President Bush.  Well, first of all, I think there's been no 
question that the United States has stood strong with Israel. And we've 
made it very clear to Mr. Arafat that he is not--he's not doing all he 
can do to fight off terror. I can't be any more clear than that. Vice 
President Cheney said, depending upon the Zinni mission and General 
Zinni's recommendation, he might go back, if and when Arafat performs.
     Surely those in the Congress you talk about appreciate the fact 
that the administration is engaged and sent General Zinni into the 
region. We laid out the Tenet plan, which is the way to bring some 
security to the region, which would then lead to the Mitchell plan. And 
we're doing everything in our power to get the parties into Tenet. And 
we'll continue working hard to get them to Tenet.
     Q. Even if the violence continues----
     President Bush.  If and when--if and when Mr. Arafat--if and when--
--
     Q. [Inaudible]
     President Bush.  Excuse me. If and when Chairman Arafat performs, 
that's what we have said. General Zinni went to the Middle East; he's 
leading discussions. But people shouldn't mistake our desire to get into 
Tenet as anything more than a desire to get to peace. And we'll continue 
working to do so.
     And Prime Minister Sharon knows where the United States stands. 
We're strong allies with Israel. We have been ever since I've been the 
President, and we'll continue to be strong allies with Israel.

 U.S. Assistance to Peru

     Q.  Good afternoon to both Presidents. President Bush, just a few 
days ago I was able to ask you in Washington about leadership in the 
fight against poverty. And on this--aside from the issue of being 55 and 
the fact that you're wearing the same color ties--you are in agreement 
with President Alejandro Toledo, who also insists on fighting against 
poverty. But the fight against poverty presupposes--and this has been 
stated by Dr. Toledo--thinking of reducing arms in Latin America, 
because for every tank or F-16, we could buy a lot more schools. Mr. 
President, I'd like to know your views on this and the views of 
President Toledo with regard to this issue, the possibility of arms 
control in the South American part of the hemisphere. And the same 
question for President Toledo.
     President Bush.  We may be the same age, but el tiene pelo negro. 
[Laughter] Yo tengo pelo gris. [Laughter]
     I appreciate President Toledo's work to have a security arrangement 
in place in the neighborhood, amongst the countries bordering Peru, that 
will then allow him to reinvest in education. We talked about that. And 
I think that is a strong commitment and a wise commitment.
     As far as my country's commitment goes, I gave a speech in 
Monterrey, Mexico, 2 days ago, where I committed our country to a 50 
percent increase in development aid. But I said, it's time for the world 
to stop looking at inputs and to focus on outputs and that the United 
States, developed nations, must do more financially. And we're leading 
the way.
     But we expect other nations to develop the habits that will lead to 
a better opportunity for their people: rule of law, a focus on 
education, and good health care. President Toledo understands that; he's 
been a leader in that effort. And I think what I said in Monterrey was 
very important, that unless we all focus on how programs benefit people 
directly, no matter what the efforts or strategy is, it's likely to lead 
to failure. But programs and policies that understand the worth of each 
human being, that each individual matters, are those programs which will 
be successful. And so our country will try to foster that. And this 
President has made that commitment, for which I am grateful.
     President Toledo.   Aside from the fact that President Bush has 
very good taste with regard to color in ties, he's also taller than I 
am. [Laughter]
     On this issue of military expenditure, we discussed it with him. 
And here I

[[Page 504]]

want to strike a difference between military expenses for armed 
conflicts between countries and military expenditures for defense 
against terrorism and drug trafficking, because these are two separate 
issues.
     I think that there is a major challenge in the world. In order to 
survive in this globalized and savagely competitive world we live in, we 
need to invest more in the minds of our people. Basically, what this 
means is investing more in nutrition, health, education, and justice for 
the poor. We won't be able to deal with the challenges of this 
globalized world unless we invest in the knowledge of our societies.
    The question immediately arises, and obviously so, in an economy 
that is growing, that is overcoming a recession, where do you get the 
money to invest in nutrition, health, and education? Well, we've made an 
appeal to countries at the bilateral level. And there the United States 
has played a very generous role, at the donors table in Madrid. And I 
want to publicly express my appreciation, Mr. President. There has been 
debt conversion, external bilateral debt swap, for social investment. 
And there we have been able to get a commitment of about $1 billion. 
This is one way to establish a financial space to invest in health, 
nutrition, and education.
     The other thing is that I believe it makes no sense in this world 
that as long as we have a country with 54 percent of Peruvians who live 
below the poverty line or 16 percent who live below the dire poverty 
line--when I was born, the very first minute of my life when I opened my 
eyes, I saw the face of dire poverty. I know what this means. That's why 
I am convinced that we can make an effort to reduce military spending, 
to reorient those resources towards investment in justice and education 
and health, because the defense of a country no longer depends on how 
many tanks or ships or aircraft we have. It's all about how strong our 
economy is, how educated our people are. And please excuse me for being 
so passionate on this subject, but there is absolutely no doubt on this. 
And the empirical evidence is very harsh with regard to the return on 
investment on education and health and nutrition for our people.
     And here, once again, we have another point of coincidence that 
leads us down the same path together. I conveyed something that's very 
close to my heart, with regard to the Huascaran education program, and I 
asked our friend to support us on this. And I will be going to New York, 
and I'm going to talk to Mr. Bill Gates to try to promote the Huascaran 
project even more. But if we reduce military spending, we're going to 
have some financial leeway to reorient this money towards the poor, who 
want to overcome poverty, who want freedom. And we'll be able to deal 
with the challenges of the future even better.
     Ladies and gentlemen, thank you very much.

  Note:  The news conference began at 6 p.m. at the Presidential Palace. 
President Toledo spoke in Spanish, and his remarks were translated by an 
interpreter. In his remarks, President Bush referred to Veronica Bowers 
and her daughter, Charity, who were killed in the accidental shootdown 
of a U.S. missionary plane in Peru on April 20, 2001; Chairman Yasser 
Arafat of the Palestinian Authority; U.S. Special Envoy to the Middle 
East Gen. Anthony Zinni, USMC (Ret.); and Prime Minister Ariel Sharon of 
Israel. President Bush also referred to FARC, the Revolutionary Armed 
Forces of Colombia; the Tenet plan, the Israeli-Palestinian cease-fire 
and security plan of June 13, 2001, negotiated by Director of Central 
Intelligence George J. Tenet; and the Mitchell report, the Report of the 
Sharm el-Sheikh Fact-Finding Committee, issued April 30, 2001. President 
Toledo referred to Minister of Defense Aurelio Loret de Mola of Peru; 
and William H. ``Bill'' Gates, chairman and chief software architect, 
Microsoft Corp.