| THE WHITE HOUSE
 
 Office of
					 the Press Secretary
 (Lisbon, Portugal)
 
 
						
						 
						   
							 | For
								Immediate Release | May 30,
								2000 |  PRESS BRIEFING BY
 SENIOR ADMINISTRATION
					 OFFICIALS
 ON PRESIDENT'S TRIP TO LISBON, PORTUGAL
 
 Sheraton
					 Hotel
 Lisbon, Portugal
 
 4:35 P.M. (L)
 
 MR. CROWLEY:
				  Good afternoon. We thought we would have two senior administration officials
				  come give you a bit of the story behind the story on today's meetings between
				  the Portuguese leaders and President Clinton. Senior official number one from
				  the National Security Council, and senior official number two from the National
				  Economic Council, but we'll do this ON BACKGROUND attributable to senior
				  administration officials.
 
 Senior administration official number one.
 
 SENIOR ADMINISTRATION OFFICIAL: Thank you, Mr. Crowley. I like to say
				  Mister; I used to have to say Colonel. I thought what I would do is just run
				  you quickly through the meetings the President had with President Sampaio and
				  with Prime Minister Guterres. And my colleague will focus on the economic
				  aspects of both meetings. Let me run you mostly through the foreign policy
				  issues that were covered.
 
 The President first met with President
				  Sampaio in a restricted meeting. Also present were Secretary Albright, Sandy
				  Berger, Ambassador McGowan and Steve Ricchetti. President Sampaio began with a
				  very eloquent review of recent Portuguese history, the last 26 years that have
				  taken Portugal from a dictatorship to democracy, from a relatively backward
				  country to one that's prosperous, from a country that was isolated to one
				  that's very much engaged in the world.
 
 I think the President was very
				  struck by this review of recent history. He was struck by one of the facts that
				  President Sampaio relayed to him. President Sampaio said that when he was a
				  young man, 30 or so years ago, about 30,000 Portuguese were in the university
				  system. Today, with the same population base, 400,000 Portuguese are in the
				  university system. The President was very struck by this.
 
 They talked
				  about Portugal's increasing international engagement in East Timor and the
				  Balkans and other places around the world. They focused some of their
				  discussion on East Timor, in particular the need to engage the East Timorese in
				  the reconstruction effort, and also the need to deal with the problem of
				  refugees in West Timor. They also talked at some length about Angola, and also
				  about the European Union's own evolution and the very important process it was
				  going through in enlarging. And the President reiterated his strong and very
				  consistent support for E.U. enlargement, and also for the E.U. more generally
				  and the European Monetary Union.
 
 And the President also talked about
				  his hope and desire to engage in another WTO round starting this year, and my
				  colleague can talk more about that. With Prime Minister Guterres, the President
				  began in a restricted session again with Sandy Berger, Secretary Albright,
				  Ambassador McGowan, Steve Ricchetti on the American side. The Prime Minister
				  began by relaying his recent trip to Russia. He was just there, as I think you
				  know, on the weekend in his capacity as the President of the European Union.
				  They talked at some length about the trip. I don't want to go into too much
				  detail about what the Prime Minister said, but he did focus on a number of
				  particular issues that he discussed with President Putin; in particular, of
				  national missile defense, Chechnya and economic reform in Russia.
 
 They
				  talked about the Balkans at some length, as well. Both agreed strongly on the
				  need to have Russia very much engaged in the process in the Balkans; the need
				  to work with the opposition in Serbia; also to enforce sanctions against
				  Serbia; and, in particular, to get the quick start projects that are part of
				  the stability pact up and running very quickly.
 
 The President thanked
				  Prime Minister Guterres for the terrific cooperation we've had with Portugal,
				  particularly with regard to the Lajes Air Base. He thanked him for renewing the
				  base agreement. They discussed at some length, also, East Timor. Prime Minister
				  Guterres was recently there, he talked a little bit about his trip. And, again,
				  they focused on bringing the East Timorese more into the reconstruction process
				  and the administrative process.
 
 They also talked about Angola. And the
				  President described our own efforts there with the bilateral consultative
				  commission that's trying to get the Angolans to engage in a peace process that
				  focuses on political reform and economic reform that reaches out to those
				  members of UNITA interested in making peace, that also focuses on enforcing
				  better U.N. sanctions and curbing the illegal diamond trade, which is funding a
				  lot of UNITA's activities.
 
 They also touched on Sierra Leone. The
				  larger conclusion, I think, from this discussion was that they both agreed
				  there is a need to do even more to build up regional peacekeeping capacity in
				  Africa and in other hot spots around the world.
 
 Finally, they took note
				  of the agreements that were signed, or will be signed today, between Portugal
				  and the United States. I think there are fact sheets that are either out or
				  coming out on all of those. Let me just briefly list them.
 
 One is an
				  agreement to cooperate on combatting Malaria in Sao Tome. The President, at his
				  event this afternoon, will focus more on that; an Open Skies agreement that's
				  very important, that my colleague can talk about a little more; an agreement on
				  child support -- this is on alimony and child support recovery for Americans
				  and Portuguese; and, finally, a deportation protocol that's very important to
				  the Portuguese.
 
 And with that, let me turn it over to my colleague to
				  run you through the economic aspects of today's meetings.
 
 SENIOR
				  ADMINISTRATION OFFICIAL: The President and the Prime Minister had fairly
				  lengthy discussions, in particular, at lunch, about some of the areas that are
				  shared personal priorities for them, which will be discussed further and
				  elevated further at tomorrow's U.S.-E.U. summit. In particular, in the area of
				  cooperation on African development, the Prime Minister referenced the E.U.
				  African summit which he had hosted earlier this year. As you know, that was an
				  unprecedented summit, and the President was extremely complimentary on the
				  importance of that summit for kicking off work in important areas and deepening
				  cooperation.
 
 They talked about their shared commitment to development
				  in Africa, in particular through the debt relief initiative known as HIPC. Both
				  expressed the desire to see that work more smoothly, more quickly, to ensure
				  that reformers in Africa would be able to invest those important funds in areas
				  like education and health.
 
 Secondly, the President noted the recent
				  passage of the African Growth and Opportunity Act as a key piece of our
				  development agenda towards Africa, and Prime Minister Guterres echoed how
				  important unilateral open market access is into the developed economies for
				  development in Africa.
 
 And, finally, they talked at some length about
				  their joint agenda to address infectious diseases, in particular HIV/AIDS,
				  tuberculosis and malaria. As my colleague mentioned earlier, we are engaging in
				  bilateral cooperation with the Portuguese to eradicate malaria in Sao Tome in
				  particular, but at the U.S.-E.U. summit tomorrow, expect to have a broader
				  initiative that will very much carry forward to the G-8 and hopefully,
				  ultimately result in greater focus and greater resources being directed at this
				  health crisis.
 
 The second area where they share a personal interest is
				  in the area of the new economy. There similarly, Prime Minister Guterres
				  earlier this year hosted what many refer to the "dot com summit," which for the
				  first time articulated a hard set of targets for the European Union to achieve.
				  He spoke of his own efforts within Portugal to hook up not only every school
				  and library, but also to get every home hooked up, reaching out in particular
				  to seniors, and the President spoke of his own initiatives in this area. And
				  they finally both spoke of the importance of the government providing a sort of
				  nurturing environment for the private sector to develop high-speed
				  interconnectiveness between Europe and the United States going forward.
 
 They also foreshadowed, both in those discussions and in the
				  discussions with President Sampaio some of the discussions on the trade agenda
				  that no doubt will also arise tomorrow, the importance in particular of
				  launching a WTO round. They were also referencing some of the important
				  outcomes that we're hoping for tomorrow in the area, for instance, of data
				  privacy, in the area of trademarks, the Madrid Protocol, and third, in
				  launching the Biotechnology Consultative Forum.
 
 And, of course, we'll
				  also expect that some of the areas where there are some disputes, some
				  frictions, will be raised tomorrow. Those were less of an issue today, but in
				  particular, the Foreign Sales Corporation tax dispute, the Airbus subsidization
				  issue and several of the other trade areas where there are ongoing frictions.
 
 Q The President expressed a little bit of optimism that there might
				  actually be some resolution to some of these issues, particularly bananas and
				  beef. Is that in the cards, or is it just going to be more talk about --
 
 SENIOR ADMINISTRATION OFFICIAL: I would not anticipate there being any
				  breakthroughs tomorrow on any of the particular trade issues. I will say that
				  both sides have engaged in discussions in all of these areas.
 
 We, for
				  our part, would very much like to see some of these longstanding issues
				  resolved. We have, for our part, endorsed the Caribbean proposals to end the
				  bananas dispute, and we would very much like to see the commission come around
				  on that. In the area of beef, we have put forward a number of proposals that we
				  think are quite constructive and really put the choice into consumers' hands,
				  allowing them to choose what kind of beef they want to buy. That hasn't worked.
				  So, as you know, we're a little bit -- we would like to see these disputes
				  resolved, and we would also like to make progress on the FSC case. We put a
				  proposal on the table which we deemed to be WTO consistent, both in law and in
				  fact, and have made clear that this is a framework on which we would want to
				  entertain discussions with the European Union.
 
 Their response on that
				  has not been as forthcoming as we would have liked.
 
 Q How likely will
				  you see the new sanctions mentioned last Friday, new sanctions against European
				  products in the beef and banana disputes?
 
 SENIOR ADMINISTRATION
				  OFFICIAL: I presume that you're talking about the carousel -- the
				  implementation of the carousel provision and the most recent trade legislation.
				  There, it's not new sanctions, there is no new retaliation, it is simply
				  implementation of a new law which requires us to engage in a public comment
				  notice to possibly shift the retaliation list from one set of products to
				  another periodically. And we have started that process by publishing a public
				  notice on that. I don't know whether that issue will come up.
 
 Q Can
				  Briefer Number One shed any light on whether -- can you elaborate on any
				  impressions the Portuguese may have brought back from their meeting with Putin,
				  specifically about the NMD, which you mentioned?
 
 SENIOR ADMINISTRATION
				  OFFICIAL: Two things, I think, worth saying. First, the Prime Minister said
				  that he found President Putin extremely well prepared, well briefed, very much
				  into the details of everything that they discussed, and also very open to
				  talking about every subject on the broad agenda, and talking about things in a
				  very frank and open manner. He said he was struck by that.
 
 On national
				  missile defense, suffice it to say that the Russians expressed concerns about
				  the possible decision to deploy a limited national missile defense system and
				  about the ABM Treaty, about START III -- don't want to go into any more detail
				  characterizing it.
 
 The President repeated to Prime Minister Guterres
				  something that, of course, the Prime Minister knows, which is that the
				  President has not made a decision on -- if and when he does make a decision,
				  it'll be based on the criteria that I think you're all familiar with -- the
				  threat, the feasibility of the technology, the cost and, of course, the larger
				  impact on arms control. And to that I think it's important to emphasize that
				  what we've been doing with the Europeans over the last several months --
				  particularly in NATO, but also bilaterally -- is to engage in a very intensive
				  series of consultations and discussions, focusing on every aspect of this
				  problem. And this is something that has gone very, very well.
 
 Q Could
				  you tell us whether the Portuguese also expressed concerns about the deployment
				  of the national missile defense?
 
 SENIOR ADMINISTRATION OFFICIAL: No,
				  the Prime Minister didn't. He simply relayed what he had heard from President
				  Putin and didn't otherwise engage in a discussion of the subject.
 
 Q Did
				  he relate --
 
 SENIOR ADMINISTRATION OFFICIAL: That really wasn't the
				  tenor of the conversation. What he was, I think, trying to do was to convey to
				  the President what he'd heard from President Putin, not only on national
				  missile defense, but also on on a host of other subjects -- on the Balkans, on
				  economic reform, on Chechnya, et cetera.
 
 Q So the Portuguese took no
				  official position on --
 
 SENIOR ADMINISTRATION OFFICIAL: He did not take
				  a position with the President on it.
 
 Q How long did this discussion
				  last -- the briefing, or debriefing, if you will, on --
 
 SENIOR
				  ADMINISTRATION OFFICIAL: On Russia?
 
 Q Exactly.
 
 SENIOR
				  ADMINISTRATION OFFICIAL: I didn't have the watch going. I would say probably
				  somewhere in the vicinity of 10 to 15 minutes; it was part of their restricted
				  session. They covered a number of things in that; that was probably about
				  almost half of the session, so 10 or 15 minutes.
 
 Q Would it be accurate
				  to say that what President Putin expressed to the Prime Minister was consistent
				  with previous Russian statements? No change? No change?
 
 SENIOR
				  ADMINISTRATION OFFICIAL: Yes. Yes, that's correct.
 
 Q On the trade
				  issue, on the WTO round, or at least starting a WTO round, I think the European
				  Union has said they want to do it, but the U.S. is reluctant. Now you're saying
				  the U.S. wants to do it. Why do we have this discrepancy in the viewpoints?
 
 SENIOR ADMINISTRATION OFFICIAL: In fact, I think that both sides have
				  expressed their desire to move forward. And, in particular, we have made some
				  progress in the WTO in recent months. We have made progress in starting the
				  built-in agenda, the so-called built-in agenda, which are the discussions on
				  agricultural market opening and agriculture more generally; and, secondly, on
				  services. Both of those discussions are now up and running in the WTO.
 
 The other area where we've made progress, working very closely with the
				  European Union, is to offer expanded market access to the least developed, in
				  the context of WTO discussions. And so there has been some progress and we will
				  continue working on issues such as that, even as we talk about what an agenda
				  for the round might me.
 
 In terms of the agenda for the round,
				  obviously, we have some areas of priority in common and some areas of priority
				  that differ somewhat. And the question will be whether we can develop an agenda
				  that is broad enough and inclusive enough to include the interests of the
				  developing countries, as well as the major developed economies.
 
 Q On
				  Chechnya, did what the Prime Minister -- heard from President Putin indicate
				  that there was any change or any softening or any progress on the Russian
				  position on Chechnya?
 
 SENIOR ADMINISTRATION OFFICIAL: The Prime
				  Minister was struck by the fact that President Putin seemed to acknowledge to
				  him that there had to be a political solution to the problem in Chechnya. He
				  noted, and I believe he's actually stated on this on the record in the press
				  conference -- I haven't seen the transcript, but that's my understanding of
				  what happened from the Prime Minister -- he noted, President Putin noted that
				  some 100 Russian soldiers were soon to go on trial for alleged war crimes and
				  other atrocities.
 
 He noted his support for an independent inquiry
				  commission. He also noted his support for an OSCE mission, although he said
				  that there were technical problems that need to be worked out. So the tenor of
				  what Guterres heard from President Putin was, as he described it, Putin being
				  quite open about the problems in Chechnya and the need to find a political
				  solution while, of course, strongly defending Russia's position on what it was
				  doing and why it was doing it.
 
 Q On the discussions on Africa, was
				  there any talk about the role of diamonds in fomenting conflict?
 
 SENIOR
				  ADMINISTRATION OFFICIAL: Yes. There was a discussion both with President
				  Sampaio and with Prime Minister Gutterres. They discussed the need to curb the
				  illegal diamond trade. They discussed the fact that this trade was helping, in
				  effect, to fund and fuel some of these conflicts, much the way narco
				  trafficking in different parts of the world was helping to fuel conflict there.
				  And there was an agreement on the need to look hard at what could be done to
				  better curb this illegal trade.
 
 Q What exactly is this AIDS initiative
				  --
 
 SENIOR ADMINISTRATION OFFICIAL: Earlier this year, the
				  administration announced their intention to intensify efforts using a
				  four-pronged approach. One is an expanded bilateral funding of research into
				  these diseases for which no vaccines yet exist. And so there is a substantial
				  doubling, I believe, of our funds.
 
 Second was a contribution to GAVI,
				  the Global Alliance for Vaccines and Immunizations. So we have pledged to try
				  to donate $50 million to GAVI. Again, there, the intention is to ensure that
				  existing vaccines are distributed broadly to those most in need.
 
 Third,
				  that we would work to develop a private sector incentive to give the private
				  sector greater financial reward for engaging in research towards the
				  development of new vaccines for these diseases, because the diseases
				  disproportionately afflict those least able to pay for vaccines and so there is
				  not a sufficient market incentive.
 
 And the fourth area is to work with
				  developing countries such as Uganda, for instance, where the political
				  commitment of the national government has made all the difference in turning
				  around the infection rate.
 
 And that kind of a framework is one that I
				  believe the E.U. is also very comfortable moving forward on and we have worked
				  to develop a joint initiative in this area. Similarly, the Japanese, as hosts
				  of the G-8, have expressed a lot of interest in tackling this critical problem,
				  which is both an economic problem for many African countries and a health
				  problem.
 
 Q Is there a number on the joint initiative? Is there a dollar
				  figure?
 
 SENIOR ADMINISTRATION OFFICIAL: There is no new dollar figure
				  on the U.S.-E.U. discussions. But I believe through this initiative, through
				  discussions at the G-8 and more generally, we will begin to see a little bit of
				  a snowball effect in terms of the industrialized governments putting up money
				  against these goals.
 
 Q Do you expect some sort of joint statement,
				  then, tomorrow, saying we're going to bring this unified approach to the G-8
				  and hopefully get the rest of the G-8 nations to sign on it?
 
 SENIOR
				  ADMINISTRATION OFFICIAL: I do expect there to be some kind of a joint statement
				  of the aims on this. I don't think it will be G-8 focused; it's U.S.-E.U.
				  focused.
 
 Q Back on Chechnya for a moment. What is the United States'
				  assessment of what Mr. Putin said in Moscow? Does this represent progress or --
 
 SENIOR ADMINISTRATION OFFICIAL: Let me defer on that to later briefers.
				  I don't want to characterize it, I just wanted to really convey what was said,
				  but not -- thanks.
 
 Q The President made a reference in his opening
				  remarks today to stability in the Balkans. What exactly will he be telling the
				  E.U. people tomorrow that needs to be done there?
 
 SENIOR ADMINISTRATION
				  OFFICIAL: Well, I think a number of things. First of all, and most broadly, a
				  need to continue to move forward on the stability pact. There was a very
				  encouraging donors' conference recently, where a number of commitments were
				  made to quick start projects. These are projects that would really bring a
				  tangible difference quickly into people's lives.
 
 I think one of the
				  things the President will focus on is the need to actually quickly start these
				  quick start projects and get the funding there, so that they can move forward
				  and so that people can really begin to feel a change in their day-to-day lives.
				  That's for the region more broadly.
 
 More specifically, and more focused
				  on other areas -- in Kosovo -- no doubt he will talk about the need to sustain
				  our commitment there, the Europeans sustain their commitment. I think he will
				  point to the strong improvement in burden sharing in Kosovo that we've seen in
				  recent months. He'll also talk about the need to fully fund the activities of
				  the U.N. mission there. We've done better on that, but there is still a budget
				  shortfall that will need to be made up; and also to get more police into the
				  region, to get more judges, civil administrators, et cetera.
 
 Finally, I
				  suspect he will talk about the need to keep sanctions strongly in place against
				  Serbia and to continue to isolate Mr. Milosevic, restate his conviction. But,
				  ultimately, we won't see a democratic Serbia until there is a change in the
				  government in Serbia.
 
 Q For the past two weeks, European leaders have
				  been engaged
 
 MR. CROWLEY: We'll make this the last question, I think
				  the President is about to speak. He is speaking? All right. We'll cut it off at
				  this point.
 
 END 4:58 P.M. (L)
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