THE WHITE HOUSE 
  Office of
				  the Press Secretary (Lisbon, Portugal)   
				   
					  
						 
						  | For
							 Immediate Release |  
						  May 31,
							 2000 |  
						  
					  
				    PRESS BRIEFING BY SENIOR DIRECTOR OF THE
				  NATIONAL SECURITY COUNCIL FOR EUROPEAN AFFAIRS TONY BLINKEN AND DEPUTY
				  NATIONAL ECONOMIC ADVISOR LAEL BRAINARD 
  Sheraton Lisboa Hotel and
				  Towers Lisbon, Portugal 
  4:42 P.M. (L) 
  MR. HAMMER:
				Good afternoon, everyone. Today we have Tony Blinken, Senior Director of the
				National Security Council for European Affairs; and Deputy National Economic
				Advisor Lael Brainard, to brief you on the results of the U.S.-EU summit.
				
  Following that, Press Secretary Joe Lockhart will come up and address
				questions, not relating to the summit, that you might have. Tony. 
  MR.
				BLINKEN: Thanks, Mike. Good afternoon. I thought what I'd do is run you through
				the security side of the U.S.-EU summit, focusing on the conversations the
				President had with Prime Minister Guterres and President Prodi. 
  The
				discussion this morning began, first of all, with Foreign Minister Gama and
				Secretary Albright reporting on the achievements of the past six months in the
				U.S.-EU framework, and on the agenda that's been agreed for the next six
				months. And I think you'll find a lot of that, if you're looking for it, in the
				senior leadership group report that's probably floating around here somewhere
				and makes for fascinating reading. 
  The President's discussions on
				security focused primarily on three areas: the Balkans, Russia-Ukraine and
				European security and defense policy. As the President noted in his press
				conference earlier, we've made remarkable progress over the last decade in
				building a peaceful, undivided democratic Europe. 
  What the discussions
				today really focused on was the unfinished business of that project; that is,
				bringing Southeast Europe and bringing Russia into the trans-Atlantic
				mainstream and also the enduring challenge of a strong U.S.-EU partnership.
				
  First of all, on the question of Southeast Europe, they focused their
				discussion in the first instance on Kosovo. They agreed that there is no global
				solution to the problems in Kosovo, specifically, and more broadly, in
				Southeast Europe, without Serbia. But, of course, we cannot work with Serbia so
				long as the Milosevic regime is in power. Both the U.S. and EU noted the recent
				events demonstrate the increasing unease and vulnerability of the Milosevic
				regime. They agreed that it was important to keep the focus on sanctions and
				also on working with the democratic opposition. 
  The President noted our
				own support for Montenegro, financial support; urged the EU to help us do more
				-- the EU itself has given a substantial amount of money to Montenegro in
				recent months. Now the challenge is supporting World Bank and EBRD, European
				Bank for Reconstruction and Development, engagement in Montenegro to support
				Djukanovic. 
  On Kosovo more specifically, the President noted his deep
				appreciation for the strong EU and member-state leadership and support, in
				particular, for the KFOR mission and for the U.N. mission. The Europeans are
				now contributing about 80 percent of the troops in Kosovo, and funding about 75
				percent of the United Nations mission there. 
  The EU has also made, the
				President noted, a very strong effort to speed disbursements to get money
				delivered faster. And he urged them to continue to do just that. The priority
				for the next six months in Kosovo, both sides agreed, is development of a
				strong judicial corrections system, fully staffing the U.N. mission there and,
				of course, bringing more police into Kosovo. 
  On the region more
				broadly, and on the Stability Pact, they discussed the progress that's been
				made, in particular, the recent donors' conference that took place last March,
				at which the European Union pledged some $2.3 billion, the United States about
				$75 million, for so-called "quick-start" projects. They agreed that there was a
				need to quickly start the quick-start projects, and to get them off the ground
				as soon as possible, so that they can show a real impact and a tangible
				difference in people's lives. 
  They also talked about the question of
				delivering more generous trade preferences to the region. And both the EU and
				the United States are working on that. 
  On Russia-Ukraine -- on Ukraine,
				first of all, both the European Union and the United States agreed strongly on
				a common commitment to support efforts of President Kuchma, the new Prime
				Minister, to pursue economic reform and development. They also noted their
				commitment to moving forward as quickly as possible on the closure of
				Chernobyl. 
  On Russia, the EU side described its recent meetings in its
				summit in Moscow with the Russians. The President talked a little bit about his
				plans for his upcoming meeting with President Putin later this week and this
				weekend. 
  Finally, on European security and defense policy, the
				President restated his strong commitment to that policy, a commitment that's
				been both strong and consistent. It's never been, he said, for us a question of
				whether Europeans should move forward with a security and defense policy, but
				simply how they should do it. And he stressed his desire that this continue to
				move forward with close links and in close cooperation with NATO. 
  Lael?
				
  MS. BRAINARD: Let me start first by describing the working lunch and
				then I'll give you a little bit of the economic discussion in the morning
				session. The entire working lunch was devoted to a discussion of two areas in
				which the EU has been working vigorously this year and in which the President
				has expressed particularly strong interests. 
  There was a long,
				unscripted and very lively discussion on these issues, with both sides
				referencing domestic initiatives and having a very similar approach on both.
				
  In the first discussion there was a lot of back and forth on how we
				were preparing our own societies to take full advantage of the information
				economy, both in terms of giving private sector the space and the government
				support it needs, in terms of ensuring that our citizens are educated and have
				access to the new technologies, and in closing the digital divide.
				
  There was a very lengthy discussion, in particular, of the need for the
				industrial countries to work together to ensure that the least developed in the
				emerging market nations participate fully in the information revolution; and
				expressed desire on the parts of both the EU and the President to move forward
				on concrete areas for cooperation with the developing world. 
  The
				President referenced extensively his experiences in India. He said that we need
				to learn from a developing country such as India where they've already made
				tremendous progress, and he referenced in particular his experiences in
				Rajasthan and their emphasis on making the Internet available through community
				sites and then moving from there through cooperative ownership and the kinds of
				opportunities that that has made available -- for instance, for farmers
				learning world commodity prices, for new mothers learning the sort of best in
				practices for caring for new babies. 
  He also referenced his experiences
				in Hyderabad, where he was exposed to the opportunities for developing
				countries, such as India, to develop real market niches, and talked about how
				we could spread those best practices to the developing world. 
  The
				second broad area where there was, again, very lively discussion and lots of
				agreement on the need to move forward in concrete ways was on combatting
				infectious diseases in the developing world, in particular those for which
				vaccines have not yet been discovered. 
  The President ran through the
				initiative that he unveiled earlier this year, which is targeted at HIV/AIDS,
				tuberculosis and malaria, including a $50-million contribution to the Global
				Alliance on Vaccines and Immunizations to help distribute vaccines throughout
				the developing world; a tax credit to create market incentives for
				pharmaceutical companies of $1 billion over 10 years; a call for increased
				lending from the concessional lending part of the World Bank, the IDA, from
				between $400 million to $900 million; and a very big increase doubling over two
				years of our spending, our bilateral international spending on HIV/AIDS
				prevention, treatment and care. 
  These initiatives were very much
				welcomed by the EU Commissioner Patton, in particular, noted the tax credit is
				a very innovative approach for addressing market incentives and also noted that
				if these diseases had the same fatality rates in industrial countries, we would
				be seeing the market putting a lot more money against them. 
  The
				President also stressed the interrelatedness of development issues; for
				instance, the need to step up spending on basic education and attain our goals
				of universal education by 2015 as a part and parcel of the broader both health
				and information economy objectives; and also noted the important connections
				between, for instance, investments in new technology and helping developing
				countries achieve climate change goals without sacrificing economic
				development. 
  So I would say in that part of the discussion there was
				tremendous agreement. Prime Minister Guterres and President Prodi expressed
				their strong hope that this would become a central element of the G-8
				discussions later in the year. And there was large intent and agreement to work
				concretely together on these issues. 
  In the earlier session, in the
				morning session, there was a very lengthy discussion on a whole variety of
				trade issues. I would say there was vigorous agreement on some of the shared,
				key priorities -- in particular, on the early launch of a round that addresses
				the needs of developing countries, and that also includes social issues, labor
				and the environment, as a matter of social justice. The other issue, of course,
				was our mutual interest in seeing China's accession into the WTO on very strong
				terms. 
  There was also some discussion of the agreements that the U.S.
				and EU have produced for this summit, in particular the launch of a
				consultative forum on biotechnology; an agreement on data privacy, which will
				allow the free flow of information across the Atlantic, while maintaining the
				highest protections on privacy consistent with the different domestic
				approaches; and finally, an agreement on trademark registrations. 
  There
				was also a lively and frank exchange on areas where our views differ. Against
				the backdrop of a $450 billion trading relationship, the largest in the world,
				there are inevitably a variety of frictions. In particular, the President
				raised strong concerns about subsidization of the commercial launch of a new
				Airbus model. He expressed some puzzlement why the European Union would not
				want to sit down and move forward with us on the approach that we've outlined
				on the Foreign Sales Corporation, and expressed again our hope that this
				WTO-consistent approach could form the basis for resolution of this; and
				finally, the hope that in the area, for instance, of bananas, that we could
				come together around a proposal that's been made by the Caribbean countries.
				
  So there was a very lively discussion on the trade area, and in
				particular on some of the areas of difference. Thank you. 
  MR. BLINKEN:
				We'll take any questions. 
  Q What about beef? (Laughter.) 
  Q
				Where's the beef? (Laughter.) 
  MS. BRAINARD: Beef was not served, but it
				was discussed. (Laughter.) 
  Q In what way? 
  Q Can you stand on
				that? Did you make any progress on that? 
  MS. BRAINARD: We did not make
				any progress on beef. Both sides did articulate their position on the beef
				dispute. 
  Q Did you make progress on any of these issues at all? The
				Foreign Sales Corporation, the beef, the bananas? Do you see any positions
				coming closer together? 
  MS. BRAINARD: On some of the trade disputes,
				such as the ones you mentioned, there was no progress at this meeting. However,
				the discussion further clarified the positions of the two sides, and made clear
				where both sides felt they had some flexibility, and made clear our desire to
				resolve these disputes on terms that are consistent with and supportive of WTO
				rules. 
  Q Was progress made on any of the four trade issues? Was any
				progress made on any? And, if so, could you be very specific in where there was
				progress? 
  MS. BRAINARD: Well, again, there were several agreements that
				were finalized. There was a lot of -- 
  Q Just the four issues, the three
				B's and sales tax. 
  MS. BRAINARD: There was no progress made on the
				Foreign Sales Corporation tax case, the bananas case, the beef hormones case.
				But, again, there was a lively and full discussion of this and I believe the
				positions of both sides were made clear. 
  Q So none of the four.
				
  Q Will you try to encourage this new forum to take the question of the
				use of hormones in meat as a subject of study -- try to solve this dispute?
				
  MS. BRAINARD: Are you referring to the Biotechnology Consultative
				Forum? 
  Q Yes. 
  MS. BRAINARD: No. The Biotechnology Consultative
				Forum is really intended to bring in a whole variety of stakeholders, not just
				scientists, but more generally on the issue of biotech in agriculture. Beef
				hormones is a case that's being litigated in the WTO context and will remain in
				that context. 
  Q You mentioned that the EU and the U.S. both made noises
				that they'd like another round of WTO talks, but was there any progress in
				reconciling the four different agendas the developing countries -- Japan,
				U.S.-EU -- that this is more than simply, I hope to be a millionaire tomorrow.
				
  MS. BRAINARD: There was some discussion at the heads level, much more,
				I believe, at the ministers level of some of the specific areas where
				resolution of differences will be needed. And there was, as I believe has been
				distributed here, a joint statement on the desire to move forward, on the
				desire to have a broad agenda that is inclusive of developing country concerns
				and that is inclusive of labor and environmental issues, in particular.
				
  Q Lael, can you tell us on the safe harbor whether companies that want
				to participate in that have to agree to each and every aspect of the European
				community regime on that? And do they have to segregate the data that they're
				getting from European sources from all their other information that they may
				have? 
  MS. BRAINARD: On the first question there is a set of principles.
				It's not the European Union regime; there's a set of jointly agreed principles
				that the companies participating would agree to. So it would, for instance, to
				the extent that domestic U.S. corporations codes are in conformity with those
				principles, that would be satisfactory. 
  On the issue of segregation, I
				would have to come back to you on that. 
  Q Tony, when the President said
				he might make more headway than people expect in his talks with Putin, is he
				talking about a plutonium agreement? 
  MR. BLINKEN: I can't tell you what
				he's talking about. I think Joe will be able to deal with that later. Sorry.
				
  Q Tony, you said the President has been strong and consistent in his
				support of the European defense pillar. But the Europeans don't seem to see it
				that way. When Solana was in Washington a couple weeks ago, he complained that
				there is a lot of resistance on the part of the U.S. How do you explain this
				difference? 
  MR. BLINKEN: Well, I'm not sure exactly what Mr. Solana was
				referring to. I don't think he would have been referring to the administration
				on that because, in fact, I think we have been very strongly consistent in our
				support for European security and defense policy. 
  We've had questions
				about how it would move forward, not whether it could move forward. And there's
				certainly been a lively discussion over the last couple of years of those
				issues -- in particular, our belief that it has to move forward in a way that
				works with NATO and doesn't in any way undermine it. It doesn't duplicate
				things that NATO is already doing, but relies as much as possible on NATO
				planning, for example, as the EU develops its own capabilities; and, in
				particular, that keeps the focus on building real new capabilities -- not just
				institutions. 
  So to that extent, we've had a lively discussion with the
				Europeans. But throughout this discussion -- and the President said this at the
				last U.S.-EU summit, he repeated it today -- we strongly support this. It
				follows through on, I think, something the President laid out in his first trip
				to Europe as President in early 1994, which is the U.S. has a strong interest
				in a strong Europe; it's not only good for Europe, it's good for us, and
				European security and defense policy is an integral part of that. 
  Q The
				President said today it would be unethical not to share national missile
				defense technology with other civilized nations. Does that mean that the system
				that he envisions might be built would protect Europe or that we would just
				show them papers and let them develop their own? 
  MR. BLINKEN: I think
				this is all part of an ongoing discussion. I think it's premature to get into
				it. Let me let Joe take any further questions on that, but I think the
				President simply said that this is a point he's made as a general point all
				along. 
  Q -- wasn't clear all along what he meant by what he said.
				
  MR. BLINKEN: Let me refer that to Joe. He'll be out in a few moments to
				talk about that. 
  Q Does that mean that you'd be willing to share this
				with the Russians? 
  MR. BLINKEN: Again, let me defer to Joe on that.
				
  Q During the meeting, did the Europeans express any interest -- the
				President was saying that this missile defense issue came up in the meeting and
				that he expressed his willingness to help civilized countries. Did they express
				any interest in getting that information or did they have any response at all
				to what he said? 
  MR. BLINKEN: The tenor of the meeting really was two
				things. One, the Europeans telling the President a little bit about what they
				had heard from President Putin during the EU-U.S. summit, very much along the
				lines of what Prime Minister Guterres told the President yesterday, which is
				the ongoing concerns the Russian have. 
  And the President in turn,
				again, tried to make very clear, one, that he hasn't made a decision on
				deploying a system; and, two, in making that decision, the criteria that he
				would take into account -- and in particular, an emphasis on looking at the
				impact on overall arms control and security. And, again, he noted, I think with
				some satisfaction, the fact that we've had very intensive ongoing consultations
				with the Europeans in NATO bilaterally on this over the last several months,
				and that that had been a very productive exercise in moving our own discussions
				forward. 
  Q So he brought up the sharing issue, but the Europeans didn't
				respond one way or another? 
  MR. BLINKEN: No, I think there was just not
				a -- there was no detailed discussion of it. 
  Q You understand -- is
				there any difference between what President Clinton is saying on this subject
				and what Governor Bush says? Governor Bush says our missile defenses must be
				designed to protect all 50 states and our friends and allies and deployed
				forces overseas. Are you saying they're together on this? 
  MR. BLINKEN:
				Again, I don't want to go into detail or speculate on what the President was
				referring to specifically. And let me again pass that one to Joe for later.
				
  Q Can you address what seems to be a difference between what you said
				Guterres told the President, and then what Prodi said, that Putin didn't touch
				the program -- meaning the missile defense program -- in their discussions in
				Moscow? 
  MR. BLINKEN: I'm not sure where the distinction is. I can tell
				you that Prime Minister Guterres met separately with President Prodi. It's
				possible that that's the reason, but I don't know. 
  Q What are the U.S.
				expectations for the meeting the President will have with Prime Minister Barak
				tomorrow? 
  MR. BLINKEN: Again, let me leave that for Joe -- can bring
				you more up to date on that than I can. 
  THE PRESS: Joe, Joe, Joe.
				(Laughter.) 
  END 5:07 P.M. (L)  |