[Weekly Compilation of Presidential Documents Volume 40, Number 48 (Monday, November 29, 2004)]
[Pages 2851-2855]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
The President's News Conference With President Ricardo Lagos of Chile in 
Santiago

November 21, 2004

    President Lagos. My good friend President Bush, Laura, members of 
the President's delegation, members of my administration, authorities, 
friends: We're very pleased, for the third time this year, to meet with 
President Bush and to be able to continue in this way with a modern, 
mature relationship which our two countries have been able to achieve 
historically.
    As I was telling you, you're not the first George Bush to come to La 
Moneda. His father was here when we worked in order to consolidate our 
democracy. But you're the first President to come here at the dawn of 
the 21st century. And as a consequence, we must use all our energies 
towards a future agenda, an agenda in which most of the time we will be 
in agreement; sometimes we won't. But that's life, and that's what a 
more mature and a richer agenda can do for you.
    Our area of cooperation is extremely broad. We share essential 
values which make our ties stronger. We want democratic societies that 
are pluralistic, in which the capacity for enterprise will be an 
opportunity for many--open societies. As we've said over the past few 
days, economic growth and trade are incompatible with terrorism and 
incompatible with corruption. For that reason, the decisions we're 
making at this APEC meeting.
    Today too we have reviewed the progress of the free trade agreement 
between Chile and the United States. After 9 months of enforcement, this 
agreement has led to major results. Our shipments to the United States 
have increased by 27 percent. The shipments from the United States to 
Chile have increased by 25 percent. And the free trade commissions of 
both countries continue working in order to be able to fulfill the 
obligations we still have outstanding and, at the same time, to 
accelerate the removal of tariffs.
    Today, for us in Chile, 1,350 companies are sending to the United 
States over 1,350 products, which ties in directly with the creation of 
jobs here in Chile. Trade, therefore, equals more and better jobs. More 
and better jobs consolidate a democracy.
    And we have other fields of cooperation. And that's why we spoke 
about the English language and how important it is to be able to foster 
through our ministries the learning of English. As a country, we wish to 
be a bridge. We want to be a bridge and a platform in the flows of 
international trade and the flows in the Asia and Pacific region.
    We also spoke about Latin America. We spoke about the importance 
that our commitment in Haiti has and the reasons why we are present in 
that country and why we need the cooperation of many to be able to move 
Haiti forward. We want there to be elections in Haiti, but this requires 
the conditions for elections, so that there is a possibility of good 
governance in the long term. We've also pointed out that the political 
reality shows itself in many areas where they feel that progress is not 
reaching them. In the Americas, we need to work within our governments 
so that progress reaches those who need it most. And we definitely 
believe that

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economic progress and social progress are basic.
    And the President was kind enough to talk to us as well about issues 
of international peace. We have very closely followed the position of 
President Bush on the situation in the Palestine and the prospectives of 
consolidating a state there with a democratically elected government as 
a way for Palestinians and Israelis to be able to live together in 
peace.
    And, why not say this as well: We've agreed in today's meeting on 
the need to push forward the negotiations for the Doha round in the WTO. 
There we need to lend all our efforts for that international forum to be 
able to reach rules for freer, fairer trade and thus be able to cement 
the futures of our countries.
    And so we have agreement on bilateral issues, regional issues, and 
modestly speaking, multilateral issues. And that, therefore, is the 
reason why we have so much ahead of us. And for all of that, your visit 
here today is a very welcome one, and we Chileans are happy to have you 
with us. You are welcome, sir.
    President Bush. Thank you, Mr. President. Thank you very much. Laura 
and I are pleased to be here in Chile, and we thank the President and 
Mrs. Duran and the people of this fantastic country for the wonderful 
hospitality.
    I'm honored to stand with the President of this great nation. I 
congratulate President Lagos on hosting the APEC Leaders' Meeting and on 
helping to ensure its success. You did a really good job.
    Chile is a remarkable country. Chileans are a good-hearted people 
who treasure their freedom. They're committed to democracy. The people 
of this country understand the importance of economic freedom. Modern 
Chile insists on the rule of law by ensuring the basic rights and 
freedoms of its people. The prosperity and progress that grow from this 
conviction is important. It's important for Latin America, and it's 
important for the rest of the world.
    The United States and Chile are partners in addressing the 
challenges and opportunities facing our hemisphere. President Lagos and 
I agreed that the surest path to prosperity is through free and fair 
trade. Success of our free trade agreement is a model for other 
countries. Exports have risen dramatically in both our countries, and 
both the Chilean people and the people of the United States have 
benefited. And through the establishment of free trade in the Americas, 
we are committed to a future in which every free nation in the 
hemisphere can share in the benefits of open markets and in the creation 
of new jobs.
    The friendship between our two peoples is deeper than the ties of 
commerce. The United States and Chile also share a strong commitment to 
human freedom. Today President Lagos and I discussed ways to strengthen 
democratic institutions throughout the Americas and around the world. I 
appreciate his advice. I enjoy listening to his wisdom. Chile plays a 
leading role in the Community of Democracies, a caucus of democratic 
nations from every corner of the world whose representatives meet 
regularly to support the advance of freedom. Chile will host the next 
ministerial meeting of the Community, and we look forward to those 
discussions, which will examine ways to spread the benefits of liberty.
    The President and I also reaffirmed our determination to fight 
terror, to bring drug trafficking to bear, to bring justice to those who 
pollute our youth, to bring greater security and stability to our 
hemisphere. Chile has been a leader in the efforts to strengthen 
security initiatives among the nations of the Americas, and I appreciate 
your leadership, Mr. President.
    Your nation has expanded joint military exercises and security 
cooperation with key regional partners. Chile has sent 600 troops to 
support peacekeeping operations in Haiti, and we thank you for that 
strong contribution. Chilean soldiers have also made important 
contributions to peacekeeping efforts in Cyprus, in East Timor, and 
Bosnia. These are the actions of an ally of the United States, a good 
citizen of Latin America, and a friend of liberty.
    Along with my fellow citizens, I look forward to a future of even 
stronger and closer relations between our two countries in the years 
ahead.
    Thank you for your hospitality.

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Trade Relations With China/U.S. Deficit

    Q. President Bush, good afternoon. China has a very close 
rapprochement with Latin America, a lot of investment in this region. 
And in your second Presidency, are you going to do anything so you don't 
lose your influence in this region? And second, many business people are 
worried if you're going to be doing anything about the fiscal deficit in 
your country during your second term.
    President Bush. First, China is a growing country. Today we heard 
from Hu Jintao about the phenomenal growth rates that he expects for his 
economy, and that's positive. I think it's helpful for there to be 
universal prosperity. China represents great opportunities for Chile and 
the United States. And we look forward to working with China. We've got 
a lot of trade with China, and we want to continue to have good trading 
relations with China.
    We got a lot of trade in the hemisphere. We got a free trade 
agreement with Chile. NAFTA is a strong driver for prosperity in our own 
neighborhood, and we'll continue to advance free trade throughout this 
hemisphere. I, frankly, don't view trade--China's actions and the 
actions of the United States as zero sum. I view it as a positive 
development.
    Secondly, at the meeting today people expressed concern about the 
value of the U.S. dollar, and I reiterated the fact that my Government 
has a strong dollar policy. And the best way to affect those who watch 
the dollar's value is to make a commitment to deal with our short-term 
and long-term deficits.
    As far as our short-term deficit goes, I'll present a budget that 
continues us on the path to reducing our deficit in half over a 5-year 
period of time. We're in the fourth year of--first year of--we finished 
the first year of a 5-year period to reduce the deficit in half. 
Congress is working on the appropriations bill that meets those targets. 
I look forward to signing it when they come back and finally finish the 
package in early December.
    A long-term deficit issue really relates to unfunded liabilities 
when it comes to Social Security and Medicare. In my recent campaign, I 
made it clear that I think it's very important for us to address those 
long-term unfunded liabilities. For example, in Social Security, I 
talked about the need for personal savings accounts for younger workers 
as a part of a solution. Frankly, the Chilean model serves as a good 
example for those that are going to be writing the law in the United 
States.
    And so my commitment to the international world is that we'll deal 
with the short-term deficit and the long-term unfunded liabilities, so 
that people can then take a look at our dollar in terms of fiscal 
austerity in Washington.
    Press Secretary Scott McClellan. The first question from the 
American press will come from Finlay Lewis of Copley News Service.

Guest-Worker Program

    Q. Thank you, Mr. President. Your administration recently received a 
letter from 21 or 22 Members of the House raising skeptical questions 
about your guest-worker program. Now, you met with President Fox earlier 
today, and I'm wondering how much--specifically how much political 
capital--that you're so proud of--you're going to spend on trying to 
overcome the built-in resistance to that plan. Specifically, what kind 
of steps are you proposing to take to sell it to the Congress?
    President Bush. Finlay, I am proud of my political capital. That's 
what you get when you win an election, and in the course of that 
election, I talked about immigration reform. I think it's important for 
our country to recognize that people are coming to our country to do 
jobs that Americans won't do, and therefore, I think a program that 
recognizes the desire of some to come to America to work and the desire 
of some in America to employ them makes sense. It makes sense not only 
for our economy; it makes sense for border security. We'd much rather 
have security guards chasing down terrorists or drugrunners or drug 
smugglers than people coming to work. And so, therefore, I think a 
guest-worker program is important, and I look forward to working with 
Congress on it.
    I get letters all the time from people that are trying to steer me 
one way or the other when it comes to legislation. But I'm going to move 
forward. In the letter, I noticed that

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they said, ``Well, this is because''--they're objecting to the program 
because it's an amnesty program. It's not an amnesty program. It's a 
worker program. It's a program that recognizes, however, that if 
somebody wants to become a citizen in the United States, they can get a 
line--in line with the people who have done so legally. I think it's 
necessary. I think it's an important piece of legislation. I look 
forward to working it. You asked me what my tactics are. I'm going to 
find supporters on the Hill and move it.

Iraq

    Q. President Bush, good evening. Conservative calculations say that 
the Iraqi war has left many dead. This action has led to enormous 
protests all over the world. This week we saw them in Chile. You stated 
that you like to hear the wisdom of President Lagos. At any point did 
Chile say no to this invasion--Chile did say no to this invasion. Who 
was right and who was wrong? And how can we change this negative image 
of the White House that exists in large parts of the world right now?
    President Bush. President Lagos didn't agree with my decision, and I 
respect that. He's still my friend.
    Secondly, whether people agree with my decision or not, there are 
two things that they've got to agree with: One, the world is better off 
with Saddam Hussein not in power; and secondly, it is important to 
succeed in Iraq. It's important to develop a democracy there. I fully 
recognize some do not believe that a democracy can take hold in Iraq. I 
strongly disagree. I believe not only democracy can take hold in Iraq, I 
believe a democracy will take hold in Iraq.
    I noticed today that the elections are on schedule for January * the 
30th. Think how far that society has come from the days of mass grave 
and torture chambers to a day in which they're going to be voting for a 
President. Prime Minister Allawi, the current leader of Iraq, is a 
strong, capable democrat. He believes in the possibilities of the people 
of Iraq, and he knows that a free society will unleash those 
possibilities.
    * White House correction.
    And so the United States of America will stay the course, and we 
will complete the task. We will help Iraq develop a democracy, and the 
world will be better off for it. Free societies don't attack each other. 
Democracies listen to the aspirations of their people, not feed hatred 
and resentment and future terrorists. And what we're doing is the right 
thing in Iraq, and history will prove it right.
    Press Secretary McClellan. Mark Silver from the Chicago Tribune.

Legislation To Restructure the Intelligence Community

    Q. Thank you, Mr. President. With the intelligence reform bill 
apparently failing, how confident are you that Secretary Rumsfeld is not 
partly responsible for that? Is there something more you, personally, 
could have done? And what does this say about your ability to achieve 
your own legislative agenda in the next 2 years?
    President Bush. I was disappointed that the bill didn't pass. I 
thought it was going to pass up until the last minute. So I look forward 
to going back to Washington to work with the interested parties to get 
it passed. I understand they're back into session to see if they can't 
get the bill passed, and I look forward to working with Members of the 
Senate and the House to get it passed.
    It's very clear I wanted the bill passed. I talked to key Members of 
the House, as did my Vice President. And we'll continue working with 
them, and hopefully, we can get a bill done. I saw the Speaker today 
said that the matter wasn't complete; it wasn't over; it wasn't final; 
that we have a chance to get a bill. And therefore, when I get home, I'm 
looking forward to working it.
    Thank you, sir.
    President Lagos. Thank you.

Note: The President's news conference began at 8:10 p.m. at La Moneda. 
In his remarks, he referred to Luisa Duran de Lagos, wife of President 
Lagos; President Hu Jintao of China; former President Saddam Hussein of 
Iraq; and Prime Minister Ayad Allawi of the Iraqi Interim Government. A 
reporter referred to President Vicente Fox of Mexico. President Lagos 
spoke in Spanish, and his remarks were translated by an interpreter.

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