[Weekly Compilation of Presidential Documents Volume 42, Number 8 (Monday, February 27, 2006)]
[Pages 309-316]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks to the Asia Society

February 22, 2006

    Thank you all. Madam President--it's got a nice ring to it. 
[Laughter] Thank you for your kind introduction; thank you for inviting 
me here. I'm honored to be here with the members of the Asia Society as 
you celebrate your 50th anniversary.
    I came here today to talk about America's relationship with two key 
nations in Asia: India and Pakistan. These nations are undergoing great 
changes, and those changes are being felt all across the world. More 
than five centuries ago, Christopher Columbus set out for India and 
proved the world was round. Now some look at India's growing economy and 
say that that proves that the world is flat. [Laughter] No matter how 
you look at the world, our relationship with these countries are 
important. They're important for our economic security, and they're 
important for our national security.

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    I look forward to meeting with Prime Minister Singh in India and 
President Musharraf in Pakistan. We will discuss ways that our nations 
can work together to make our world safer and more prosperous by 
fighting terrorism, advancing democracy, expanding free and fair trade, 
and meeting our common energy needs in a responsible way.
    I appreciate Ambassador Holbrooke. I appreciate your service to our 
country. Thanks for being the chairman of the Asia Society. Leo Daly is 
the chairman of the Asia Society of Washington. Leo, thank you. It's 
good to see you.
    I appreciate the members of the diplomatic corps that have joined us 
today, in particular, Ambassador Sen from India and Ambassador Karamet 
from Pakistan. Thanks for taking time out of your busy schedules to come 
and hear the President give a talk.
    Fifty years ago, many Asian nations were still colonies; today, 
Asians are in charge of their own destinies. Fifty years ago, there were 
only a handful of democracies in Asia; today, there are nearly a dozen. 
Fifty years ago, most of Asia was mired in hopeless poverty; today, its 
economies are engines of prosperity. These changes have been dramatic, 
and as the Asian continent grows in freedom and opportunity, it will be 
a source of peace and stability and prosperity for all the world.
    The transformation of Asia is beginning to improve the lives of 
citizens in India and Pakistan, and the United States welcomes this 
development. The United States has not always enjoyed close relations 
with Pakistan and India. In the past, the cold war and regional tensions 
kept us apart, but today, our interests and values are bringing us 
closer together. We share a common interest in promoting open economies 
that creates jobs and opportunities for our people. We have acted on 
common values to deliver compassionate assistance to people who have 
been devastated by natural disasters. And we face a common threat in 
Islamic extremism. Today I'm going to discuss America's long-term 
interests and goals in this important part of the world and how the 
United States can work together with India and Pakistan to achieve them.
    The first stop on my trip will be India. India is the world's 
largest democracy. It is home to more than a billion people--that's more 
than three times the population of the United States. Like our own 
country, India has many different ethnic groups and religious 
traditions. India has a Hindu majority and about 150 million Muslims in 
that country. That's more than in any other country except Indonesia and 
Pakistan. India's Government reflects its diversity. India has a Muslim 
President and a Sikh Prime Minister. I look forward to meeting with both 
of them. India is a good example of how freedom can help different 
people live together in peace. And this commitment to secular government 
and religious pluralism makes India a natural partner for the United 
States.
    In my meetings with Prime Minister Singh, we'll discuss ways to 
advance the strategic partnership that we announced last July. Through 
this partnership, the United States and India are cooperating in five 
broad areas.
    First, the United States and India are working together to defeat 
the threat of terrorism. Like the American people, the people of India 
have suffered directly from terrorist attacks on their home soil. To 
defeat the terrorists, our intelligence and law enforcement agencies are 
cooperating on a regular basis to make air travel more secure, increase 
the security of cyberspace, and prevent bioterrorist attacks. Our two 
Governments are sharing vital information on suspected terrorists and 
potential threats, and these cooperative efforts will make the Indian 
Government more effective as a partner in the global war on terror and 
will make the people in both our countries more secure.
    Secondly, the United States and India are working together to 
support democracy around the world. Like America, India overcame 
colonialism to establish a free and independent nation. President 
Franklin Roosevelt supported India in its quest for democracy, and now 
our two nations are helping other nations realize the same dream.
    Last year we launched the Global Democracy Initiative, which is a 
joint venture between India and the United States to promote democracy 
and development across the world. Under this initiative, India and the 
United States have taken leadership roles in

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advancing the United Nations Democracy Fund. The fund will provide 
grants to governments and civil institutions and international 
organizations to help them administer elections, fight corruption, and 
build the rule of law in emergency democracy--in emerging democracies. 
We're also encouraging India to work directly with other nations that 
will benefit from India's experience of building a multiethnic democracy 
that respects the rights of religious minorities.
    India's work in Afghanistan is a good example of India's commitment 
to emerging democracies. India has pledged $565 million to help the 
Afghan people repair the infrastructure and get back on their feet. And 
recently, India announced it would provide an additional $50 million to 
help the Afghans complete their National Assembly building. India has 
trained National Assembly staff, and it's developing a similar program 
for the Assembly's elected leaders. The people of America and India 
understand that a key part of defeating the terrorists is to replace 
their ideology of hatred with an ideology of hope. And so we will 
continue to work together to advance the cause of liberty.
    Third, the United States and India are working together to promote 
global prosperity through free and fair trade. America's economic 
relationship with India is strong, and it's getting better. Last year, 
our exports to India grew by more than 30 percent. We had a trade 
surplus of $1.8 billion in services. India is now one of the fastest-
growing markets for American exports, and the growing economic ties 
between our two nations are making American companies more competitive 
in the global marketplace. And that's helping companies create good jobs 
here in America.
    The growing affluence of India is a positive development for our 
country. America accounts for 5 percent of the world's population. That 
means 95 percent of our potential customers live outside our borders. 
More than a billion of them live in India. We welcome the growing 
prosperity of the Indian people and the potential market it offers for 
America's goods and services.
    When trade is free and fair, it benefits all sides. At the end of 
World War II, the United States chose to help Germany and Japan recover. 
America understood then that as other nations prosper, their growing 
wealth brings greater stability to their regions and more opportunities 
for products Americans manufacture and grow. The same is true today with 
developing nations such as India. As India's economy expands, it means a 
better life for the Indian people and greater stability for the region. 
It means a bigger market for America's businesses and workers and 
farmers.
    The area of America's relationship with India that seems to receive 
the most attention is outsourcing. It's true that a number of Americans 
have lost jobs because companies have shifted operations to India. And 
losing a job is traumatic. It's difficult. It puts a strain on our 
families. But rather than respond with protectionist policies, I believe 
it makes sense to respond with educational polices to make sure that our 
workers are skilled for the jobs of the 21st century.
    We must also recognize that India's growth is creating new 
opportunities for our businesses and farmers and workers. India's middle 
class is now estimated at 300 million people. Think about that. That's 
greater than the entire population of the United States. India's middle 
class is buying air-conditioners, kitchen appliances, and washing 
machines, and a lot of them from American companies like GE and 
Whirlpool and Westinghouse. And that means their job base is growing 
here in the United States of America. Younger Indians are acquiring a 
taste for pizzas from Domino's--[laughter]--Pizza Hut. And Air India 
ordered 68 planes valued at more than $11 billion from Boeing, the 
single largest commercial airplane order in India's civilian aviation 
history. Today, India's consumers associate American brands with quality 
and value, and this trade is creating opportunity here at home.
    Americans also benefit when U.S. companies establish research 
centers to tap into India's educated workforce. This investment makes 
American companies more competitive globally. It lowers the cost for 
American consumers. Texas Instruments is a good example. Today, Texas 
Instruments employs 16,000 workers in America. It gets more than

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80 percent of its revenues from sales overseas. More than 20 years ago, 
Texas Instruments opened a center in Bangalore, which is India's Silicon 
Valley. They did so to assist in analog chip design and digital chip 
design and related software development. The company says that their 
research centers in countries like India allow them to run their design 
efforts around the clock. They bring additional brainpower to help solve 
problems and provide executives in the United States with critical 
information about the needs of their consumers and customers overseas.
    These research centers help Texas Instruments to get their products 
to market faster. It helps Texas Instruments become more competitive in 
a competitive world. It makes sense. The research centers are good for 
India, and they're good for workers here in the United States.
    In the past decade, India has made dramatic progress in opening its 
markets to foreign trade and investment, but there's more work to be 
done. India needs to continue to lift its caps on foreign investment, to 
make its rules and regulations more transparent, and to continue to 
lower its tariffs and open its markets to American agricultural 
products, industrial goods, and services. We'll continue to work for 
agreements on these economic and regulatory reforms to ensure that 
America's goods and services are treated fairly. My attitude is this: If 
the rules are fair, I believe our companies and our farmers and our 
entrepreneurs can compete with anybody, anytime, anywhere.
    India is an important--is a market for our products. India is also 
important as a partner in opening up world markets. As a new nation, 
India emphasized self-sufficiency and adopted strong protectionist 
policies. During this period, its economy stagnated and poverty grew. 
India now recognizes that a brighter future for its people depends on a 
free and fair global trading order. Today, the Doha round of trade talks 
at the World Trade Organization provides the greatest opportunity to 
lift hundreds of millions of people out of poverty and to boost economic 
growth across the world. The WTO members' aim is to complete the Doha 
round by the end of this year. India has played an important leadership 
role in the Doha talks, and we look to India to continue to lead as we 
work together for an ambitious agreement on services and manufacturing 
and agriculture.
    Fourth, the United States and India are working together to improve 
human health and the environment and address the issue of climate 
change. So we've joined together to create the Asia-Pacific Partnership 
on Clean Development and Climate. Together with Australia and China and 
Japan and South Korea, we will focus on practical ways to make the best 
practices and latest energy technologies available to all--things like--
technologies like zero-emission, coal-fired plants. As nations across 
the region adopt these practices and technologies, they will make their 
factories and powerplants cleaner and more efficient. We look forward to 
being an active partner in this partnership.
    Fifth, the United States and India will work together to help India 
meet its energy needs in a practical and responsible way. That means 
addressing three key issues: oil, electricity, and the need to bring 
India's nuclear power program under international norms and safeguards.
    India now imports more than two-thirds of its oil. As the economy--
as its economy grows, which we're confident it will, it will need even 
more oil. The increased demand from developing nations like India is one 
of the reasons the global demand for oil has been rising faster than 
global supply. Rising demand relative to global supply leads to price 
increases for all of us.
    To meet the challenge here in America, I have proposed what's called 
an Advanced Energy Initiative to make this company [country] * less 
reliant upon oil. As I said in the State of the Union, ``We've got a 
problem; we're hooked on oil.'' And we need to do something about it.
    * White House correction.
    And so we're spending money on research and development to develop 
cleaner and more reliable alternatives to oil, alternatives that will 
work, alternatives such as hybrid vehicles that will require much less 
gasoline, alternatives such as new fuels to substitute for gasoline, and 
alternatives such as using hydrogen to power automobiles. We will share 
these promising energy technologies

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with countries like India. And as we do so, it will help reduce stress 
on global oil markets and move our world toward cleaner and more 
efficient uses of energy.
    India's rising economy is also creating greater demand for 
electricity. Nuclear power is a clean and reliable way to help meet this 
need. Nuclear power now accounts for nearly 3 percent of India's 
electricity needs, and India plans to increase the figure by--to 25 
percent by 2050. And America wants to help.
    My administration has announced a new proposal called the Global 
Nuclear Energy Partnership. Under this partnership, America will work 
with nations that have advanced civilian nuclear energy programs--such 
as Great Britain, France, Japan, and Russia--to share nuclear fuel with 
nations like India that are developing civilian nuclear energy programs. 
The supplier nations will collect the spent nuclear fuel, and the 
supplier nations will invest in new methods to reprocess the spent 
nuclear fuel so that it can be used for advanced new reactors. The 
strategy will allow countries like India to produce more electricity 
from nuclear power; it will enable countries like India to rely less on 
fossil fuels; it will decrease the amount of nuclear waste that needs to 
be stored and reduce the risk of nuclear proliferation.
    To benefit from this initiative, India first needs to bring its 
civilian energy programs under the same international safeguards that 
govern nuclear power programs in other countries. And India and the 
United States took a bold step forward last summer when we agreed to a 
civil nuclear initiative that will provide India access to civilian 
nuclear technology and bring its civilian programs under the safeguards 
of the International Atomic Energy Agency.
    This is not an easy decision for India, nor is it an easy decision 
for the United States, and implementing this agreement will take time, 
and it will take patience from both our countries. I'll continue to 
encourage India to produce a credible, transparent, and defensible plan 
to separate its civilian and military nuclear programs. By following 
through on our commitments, we'll bring India's civilian--civil nuclear 
program into international mainstream and strengthen the bonds of trust 
between our two great nations.
    We have an ambitious agenda with India. Our agenda is also 
practical. It builds on a relationship that has never been better. India 
is a global leader as well as a good friend, and I look forward to 
working with Prime Minister Singh to address other difficult problems 
such as HIV/AIDS, pandemic flu, and the challenge posed by Iran's 
nuclear ambitions. My trip will remind everybody about the strengthening 
of a important strategic partnership. We'll work together in practical 
ways to promote a hopeful future for citizens in both our nations.
    The second stop of my trip will be to Pakistan. Pakistan is a key 
ally in the war on terror. Pakistan is a nation of 162 million people. 
It has come a long way in a short period of time. Five years ago, 
Pakistan was one of only three nations that recognized the Taliban 
regime in Afghanistan. That all changed after September the 11th. 
President Musharraf understood that he had to make a fundamental choice 
for his people. He could turn a blind eye and leave his people hostage 
to terrorists, or he could join the free world in fighting the 
terrorists. President Musharraf made the right choice, and the United 
States of America is grateful for his leadership.
    Within 2 days of the attack, the Pakistani Government committed 
itself to stop Al Qaida operatives at its border, share intelligence on 
terrorist activities and movements, and break off all ties with the 
Taliban Government in Kabul if it refused to hand over bin Laden and the 
Al Qaida leadership. President Musharraf's decision to fight the 
terrorists was made at great personal risk. He leads a country that the 
terrorists seek to use as a base of operations, and they take advantage 
of every opportunity to create chaos and destabilize the country. The 
terrorists have tried to assassinate President Musharraf on a number of 
occasions, because they know he stands in the way of their hateful 
vision for his country. He is a man of courage, and I appreciate his 
friendship and his leadership.
    Pakistan now has the opportunity to write a new chapter in its 
history, and the United States wants to build a broad and lasting 
strategic partnership with the people of Pakistan.

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And in my meetings with President Musharraf, we'll be discussing areas 
that are critical to the American-Pakistan relationship.
    First, the United States and Pakistan will continue our close 
cooperation in confronting and defeating the terrorists in the war on 
terror. Second, the United States and Pakistan understand that in the 
long run, the only way to defeat the terrorists is through democracy.
    Pakistan still has a distance to travel on the road to democracy, 
yet it has some fundamental institutions that a democracy requires. 
Pakistan has a lively and generally free press. I'm confident I will 
hear from them on my trip to Pakistan. [Laughter] Occasionally, there's 
interference by security forces, but it's a strong press. Pakistanis are 
free to criticize their Government, and they exercise that right 
vigorously. There are a number of political parties and movements that 
regularly challenge the Government. President Musharraf remains 
committed to a moderate state that respects the role of Islam in 
Pakistani society while providing an alternative to Islamic radicalism. 
The United States will continue to work with Pakistan to strengthen the 
institutions that help guarantee civil liberties and help lay the 
foundations for a democratic future for the Pakistani people.
    The United States and Pakistan both want the elections scheduled for 
next year to be successful. This will be an important test of Pakistan's 
commitment to democratic reform, and the Government in Islamabad must 
ensure that these elections are open and free and fair. The Pakistanis 
are taking this step toward democracy at a difficult time in their 
history. There are determined enemies of freedom attacking from within. 
We understand this struggle; we understand the pressure. And the United 
States will walk with them on their path to freedom and democracy.
    The United States and Pakistan both want to expand opportunity for 
the Pakistani people. Opportunity starts with economic growth, and that 
is why President Musharraf has made economic reform a priority for his 
administration. These reforms have helped Pakistan's economy grow 
rapidly last year. There is strong economic vitality in that country, 
and we will help Pakistan build on that momentum.
    We're taking several steps to open up markets and expand trade. And 
these include efforts to conclude a bilateral investment treaty that 
would establish clear and transparent rules to provide greater certainty 
and encourage foreign direct investment. By fostering economic 
development and opportunity, we will reduce the appeal of radical Islam 
and demonstrate that America is a steadfast friend and partner of the 
Pakistani people.
    The United States and Pakistan are working together to improve 
educational opportunities for the Pakistani people. Young men in 
Pakistan need a real education that provides the skills required in the 
21st-century workplace. Pakistan needs to improve literacy for its women 
and help more Pakistani girls have the opportunity to go to school.
    Last year, the United States provided $66 million to help improve 
Pakistani education, especially in the least developed regions of the 
country. This is money well spent. We're glad to partner with the 
Pakistan Government to help train primary school teachers and 
administrators and build new schools and adapt existing ones so that 
young girls can attend school. These funds also support the largest 
Fulbright program in the world--an educational exchange that brings 
Pakistani scholars to America and American scholars to Pakistan. By 
helping Pakistan increase the educational opportunities for its people, 
we'll help them raise their standard of living and help them marginalize 
the terrorists and the extremists.
    The Pakistani people saw America's commitment to their future when 
we responded in their hour of need. When a devastating earthquake hit a 
remote area in the mountains of north Pakistan, it claimed more than 
73,000 lives and displaced more than 2.8 million people from their 
homes. American relief workers were on the ground within 48 hours. Since 
then, we've pledged more than a half a billion dollars for relief and 
reconstruction, including $100 million in private donations from our 
citizens. These funds have helped to build 228 tent schools, improve 
shelter for over half a million people,

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and feed over a million folks. Our compassion is making a difference in 
the lives of the Pakistanis, and it's making a difference in how they 
view America.
    The terrorists have said that America is the Great Satan. Today, in 
the mountains of Pakistan, they call our Chinook helicopters ``angels of 
mercy.'' Across their country, the Pakistani people see the generous 
heart of America. Our response has shown them that our commitments to 
Pakistan are real and lasting. We care about the people in that 
important country. When they suffer, we want to help.
    The great changes that are taking place inside India and Pakistan 
are also helping to transform the relationship between these two 
countries. One encouraging sign came after the earthquake, when India 
offered assistance to Pakistan, and President Musharraf accepted. India 
sent tents and blankets and food and medicine, and the plane that 
delivered the first load of supplies was the first Indian cargo aircraft 
to land in Islamabad since the 1971 war. India and Pakistan must take 
advantage of this opening to move beyond conflict and come together on 
other issues where they share common interests.
    Good relations with America can help both nations in their quest for 
peace. Not long ago, there was so much distrust between India and 
Pakistan that when America had good relations with one, it made the 
other one nervous. Changing that perception has been one of our 
administration's top priorities, and we're making good progress. 
Pakistan now understands that it benefits when America has good 
relations with India. India understands that it benefits when America 
has good relations with Pakistan. And we're pleased that India and 
Pakistan are beginning to work together to resolve their differences 
directly.
    India and Pakistan are increasing the direct links between their 
countries, including a rail line that has been closed for four decades. 
Trade between India and Pakistan grew to more than $800 million from 
July of 2004 to July of 2005--nearly double the previous year. The 
Governments of India and Pakistan are now engaged in dialog about the 
difficult question of Kashmir. For too long, Kashmir has been a source 
of violence and distrust between these two countries. But I believe that 
India and Pakistan now have an historic opportunity to work toward 
lasting peace. Prime Minister Singh and President Musharraf have shown 
themselves to be leaders of courage and vision. On my visit, I will 
encourage them to address this important issue. America supports a 
resolution in Kashmir that is acceptable to both sides.
    This is a sensitive time in South Asia. In Pakistan and other 
countries, images broadcast around the world have inflamed passions, and 
these passions have been cynically manipulated to incite violence. 
America believes that people have the right to express themselves in a 
free press. America also believes that others have the right to disagree 
with what's printed in the free press and to respond by organizing 
protests, so long as they protest peacefully. And when protests turn 
violent, Governments have an obligation to restore the rule of law, 
protect lives and property, and ensure that diplomats who are serving 
their nations overseas are not harmed. We understand that striking the 
right balance is difficult, but we must not allow mobs to dictate the 
future of South Asia.
    In this vital region, the stakes are high and the opportunities are 
unprecedented. With the end of the cold war and the fall of the Taliban, 
more and more people are looking forward to a future of freedom. As 
freedom spreads, it's bringing hope to hundreds of millions who know 
nothing but despair. And as freedom spreads, it's sweeping away old 
grievances and allowing people in Central Asia and South Asia and beyond 
to take their rightful place in the community of nations.
    This vision will take years to achieve, but we can proceed with 
confidence because we know the power of freedom to transform lives and 
cultures and overcome tyranny and terror. We can proceed with confidence 
because we have two partners--two strong partners--in India and 
Pakistan.
    Some people have said the 21st century will be the Asian century. I 
believe the 21st century will be freedom's century. And together, free 
Asians and free Americans will seize the opportunities this new century 
offers and lay the foundation of peace and prosperity for generations to 
come.

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    May God bless India and Pakistan. May God continue to bless the 
United States.

Note: The President spoke at 10:47 a.m. at the Mandarin Oriental Hotel. 
In his remarks, he referred to Vishakha N. Desai, president, and Richard 
C. Holbrooke, executive committee chairman, Asia Society; Prime Minister 
Manmohan Singh, Ambassador to the United States Ronen Sen, and President 
A.P.J. Abdul Kalam of India; President Pervez Musharraf and Ambassador 
to the United States Jehangir Karamet of Pakistan; and Usama bin Laden, 
leader of the Al Qaida terrorist organization.