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U.S. Department of State
93/10/01 Press Conf. with Sec. Bentsen & Russian ForMin on Middle East
Office of the Spokesman
U.S. DEPARTMENT OF STATE
Office of the Spokesman
For Immediate Release October 1, 1993
PRESS CONFERENCE BY
SECRETARY OF STATE WARREN CHRISTOPHER,
SECRETARY OF TREASURY LLOYD BENTSEN,
RUSSIAN FOREIGN MINISTER ANDREI KOZYREV,
DURING
THE CONFERENCE TO SUPPORT MIDDLE EAST PEACE
Washington, D.C.
October 1, 1993
MR. McCURRY: Good afternoon, ladies and gentlemen. I'd like to welcome
you to the Conference to Support Middle East Peace. Secretary of State
Christopher and Secretary of the Treasury Bentsen will make opening
remarks on behalf of the Conference co-sponsors -- the United States and
the Russian Federation.
Following the opening statements on behalf of the conference co-
sponsors, the Ministers and other representatives seated on the stage
will be glad to take your questions from the microphones placed in the
aisles.
Secretary Christopher.
SECRETARY CHRISTOPHER: Good afternoon.
It was only 19 days ago that the world witnessed on the White House lawn
an historic turning point in the Middle East. One week later the United
States issued a call for a Donors Conference to make that breakthrough
irreversible. Today we can say with confidence that never before has
the international community moved so purposefully and with such urgency
to build a lasting peace. I can say to you with confidence that the
meeting this morning has been a striking success.
On behalf of the United States and our Russian co-sponsors, represented
by Foreign Minister Kozyrev and Finance Minister Federov, Secretary
Bentsen and I are delighted to summarize the results of the conference.
The number and broad range of participants in this conference exceeded
our expectations. The conference brought together 46 delegations from
around the globe. Indeed, for the first time in my memory, nations
actually requested invitations to a Donors Conference. That remarkable
response reflects the new political landscape and the new sense of
optimism that has emerged in the Middle East. Those contributions
pledged today reflected a genuine and sincere and generous commitment,
as Secretary Bentsen will describe in a moment. This assistance gives
us every reason to expect that the needs foreseen in the World Bank's
estimates will be met in the years ahead.
The Palestinians have already taken the critical step of creating a
mechanism to work with the World Bank and others to establish priorities
and sound development policies. The major donors and the World Bank
will work together to ensure that the assistance is cost-effective, that
it will produce tangible results on the ground, and that it will spur
long-term economic growth. We must work together to help Israel move to
a productive new relationship with her Palestinian neighbors.
For more than 40 years the world has sought a just and lasting peace in
the Middle East. Now we have seen a soaring achievement by the Israelis
and the Palestinians, an extraordinary show of support by the
international community. Certainly our work together has only begun,
but we can be greatly encouraged by the unprecedented moral and material
commitment that has been made today.
Now I'll introduce my colleague, Secretary Bentsen, for the information
you really are interested in.
Secretary Bentsen.
SECRETARY BENTSEN: Well, I'm delighted to join my colleague, Secretary
Christopher.
This is an incredible response, as you've seen, in such a short period
of term. To think it was only some three weeks ago that that historic
handshake took place and less than two weeks ago when we announced this
meeting and then have these representatives from around the world coming
to pledge their assistance.
What you're looking at here is again how important this economic
structure is for the future because you must see in this West Bank and
Gaza an improving economy, one that will lead to prosperity and the
success of this venture.
We've had about 50 nations and international organizations that have
come together to bring about this show of support for the Middle East
peace.
As you know, there are very immediate and pressing needs in the West
Bank, and they have to be attended [to] quickly.
I'm gratified that there are pledges for over $600 million for that
critical first year. Over two years it will reach a billion dollars.
Commitments made today approach $2 billion over the five years; and,
with the continuation of the maintenance of effort in this from the
donors that we have seen, I am confident that we will exceed the $2.4
billion that the World Bank estimates to be the needs over five years.
You'll find some of the fine points of what we agreed to do in the
longer statement which we are handing out. But I want to point out the
broad role of the multilateral institutions in this effort. We're
calling on the World Bank to play an important role, as well as the
United Nations Relief and Works Agency, the U.N. Development Program,
and the IMF.
As donor nations, we agreed we should support urgent relief efforts and
start rehabilitating the existing infrastructure. That in itself is a
challenge. But we also agreed that we must do more. We must help the
Palestinians as they work to organize and manage their own political,
economic, and social affairs.
The donors have agreed to start an extensive program of technical
assistance to build the institutions of government and to train
personnel.
The close cooperation of the Palestinians and the Israelis will be
essential in every area of institution-building. One of the critical
needs will be creating a revenue-sharing system and a local revenue-
collection system which a Secretary of the Treasury can have a full
appreciation for.
Over the longer term, we agreed that promoting both public and private
investment will launch the West Bank and the Gaza on a path of growth.
We have a five-year program to make investments in physical and social
infrastructure, as well as in the areas of their productive capacity.
The representatives of both the Palestinian community and Israel and the
private donors stressed the part the private sector will play in this --
through lunch and talking to the PLO representative and hearing him talk
of the interest of Palestinians back in the Gaza and the West Bank and
what he anticipates in the way of private capital coming to that area.
The Palestinians have acknowledged how very important it is to have an
environment that encourages private investment, and donors will
encourage private investment through incentive programs.
Conference participants also stressed the need to address the
development of the West Bank and the Gaza in its regional context, and
there was agreement that free trade is certainly needed through the
region.
And, finally, we have a shared concern -- Secretary Christopher and I --
that the assistance we are pledging be managed as efficiently as
possible, as there will be close cooperation among major donors and the
World Bank to meet that goal.
Thank you.
MR. McCURRY: Questions will be recognized from either of the two
microphones.
QUESTION: My name is Abdul Salaam Massareuh. I'm with the Jerusalem
Press Service here in Washington.
Mr. Secretary Christopher and Mr. Secretary Bentsen and Mr. Secretary
Kozyrev, in the last, I think, 48 hours the PLO handed Israel a very
strong protest about the imprisonment and the siege that they held
around the city or the town of Qabatia on the West Bank and there is
indication of Palestinian activists. The demarche was very strong and
the Palestinians requested that this will be lifted and the Palestinians
will be returned home.
The second point, Mr. Christopher: You know that there is unemployment,
there is poverty and starvation, in the Gaza Strip -- over 60 percent
unemployment. What are the immediate steps that the donors, the U.S.
Administration, and the Russian colleagues and friends and the whole
world is going to do to try to bring an immediate infusion of funds to
help the Palestinian families who go home hungry every night?
Thanks, sir.
SECRETARY CHRISTOPHER: Well, from the very beginning of this effort
over the last 19 days, President Clinton has stressed the need for some
very early programs; and that's been common ground among all of us. It
was stressed over and over again at the meeting this morning. The
United States is preparing a list of things that can be done
immediately. And as we proceed over the next few days and as we give
you further detail, you'll see that there's going to be action taken
there in that area -- not over a one-year or two-year period; within the
next several months -- because we all realize that the people on the
ground have to see the results of this agreement. There has to be some
indication that it will succeed and be successful.
In connection with the protest, I'd just simply say to you that I've
been so focused on this conference today that I've not dealt with that
and we'll respond to that at a later time.
MR. MCCURRY: Ralph?
QUESTION: May I address my question to the World Bank representative,
please? I'm afraid I don't recognize you. Is that Mr. Preston?
MR. PRESTON: Yes.
QUESTION: I'd like to request -- I think there are many people who
wonder how this money, being sent in as quickly as it can, will be
audited to make sure it's spent on concrete projects to improve
conditions for Palestinians in the West Bank and Gaza and not on other
kinds of projects and not be lost in bureaucracy that's hastily
established for this purpose. Can you tell us what steps will be taken?
How will the people who are contributing this money know that it's being
properly spent?
MR. PRESTON: Well, I think in terms of the short-term aid you should
recognize that there are a number of United Nations organizations active
in the area. A number of the donors are active, and the World Bank has
no intention of replacing those existing Agencies who've done an
excellent job. They will get additional funding as a consequence of
this effort, and we will be devoting ourselves to the longer-term
projects and getting the institutional organizations in place so that
the proper supervision can take place.
MR. McCURRY: Can I ask if you have a question to pose, please proceed
to either one of the two microphones, and we'll call in order. The next
question is Mary Curtis. Well, we'll amend that. The next question is
the faster-moving Jack McWethy. (Laughter.) Go ahead. (Indicating Ms
Curtis.)
QUESTION: Mr. Secretary, I wonder if you could address the dispute
between the European Community and the United States over a steering
mechanism, which is actually a follow-on to Ralph Begleiter's question.
My understanding, both in the speeches given here today and in talking
to European diplomats, is that the Europeans disagree with the United
States, that the United States wants to create a steering committee and
the Europeans do not want to create such a mechanism and say it's an
unnecessary bureaucracy.
Is there a dispute, and how do you propose to resolve it, if there is?
SECRETARY CHRISTOPHER: Well, we've been consulting with the major
donors about the best mechanism to carry forward these arrangements to
insure that they will be done efficiently and prudently. The best
thinking now seems to be that there will be a liaison committee
consisting of the major donors who will work together with the World
Bank as the secretariat.
I think we have come into agreement on that. It's not surprising that
given the speed with which all this has gone together, as I said, over a
period of nineteen days that we've been working through some of the
arrangements, but I do not believe there is any longer any difference of
opinion on this, and that we'll be able to announce with precision
precisely what that liaison group will be.
But I think we are well organized on that now, and I don't expect there
to be a problem.
QUESTION: Thank you.
MR. McCURRY: Mr. McWethy.
QUESTION: For Secretary Christopher. You seem to make an allusion in
your statement earlier today, this morning, about the kind of message
this sends to other parties in the Middle East.
Can you direct your attention to the Syrians, in particular, and give us
your impressions as to what this conference today says to them about the
need to proceed?
SECRETARY CHRISTOPHER: Well, I was directing my comments this morning
to those who were the enemies of this process who would try to find some
way to disrupt it. The Syrians have not done that, to this point. They
have not indicated opposition to the process.
I really want to emphasize that those who support this process will
receive the approbation of the international community, but those who
try to disrupt it, those who try to interfere with it, I think will find
the international community lined up against them.
The tremendous turn-out today is some reflection of the broad-scale
support that these agreements have, and I think it should be a message
to those who would try to move to in any way disrupt it or discredit it.
With respect to the Syrians, I would say that the agreement in today's
conference ought to be a reason for them to feel that we are all working
toward a comprehensive peace in the Middle East. The title of the
conference is to support the Middle East peace process, not a single
bilateral track, and I hope that the Syrians will see in this the
beginning of the search for a broader and more comprehensive peace in
the Middle East.
QUESTION: But my question deals with, would you anticipate that there
would be donor conferences if the Syrians decided to step up and have a
peace agreement. Is this financial backing the kind of thing that can
be transferred to other settlements?
SECRETARY CHRISTOPHER: Well, the situations are really quite different.
You have the occupied territories of the West Bank in a situation of
great financial distress. If there is an agreement between Israel and
Syria, it will have its own connotations and its own aspects, but I
think there are no two situations exactly alike, but I think that this
meeting today shows that the international community is strongly in
favor of the search for peace in the Middle East, and I would expect
there to be similar backing, although quite different perhaps, similar
in over-all support for other tracks if they reach the kind of positive
settlement that was reached here.
QUESTION: This question might be addressed best to either Mr. Preston
or Secretary Bentsen.
There was a Palestinian estimate of the amount of money needed over a
seven year period and it came out to be something like $ll.6 billion;
$3.3 which would be raised domestically or through local investment.
Even with that and even assuming that they are including the 600,000
returnee refugees, there still seems to be a vast disparity between the
World Bank figure of $2.4 for the five year period, or three, depending
on who you are talking to, and what the Palestinians are saying.
Is this disparity real, or is it just a different way of accounting?
SECRETARY BENTSEN; Well, I have found historically that when you are
talking about funds, and particularly for bringing together people from
around the world, Palestinians that will want to be there, one would
assume, that they will choose some high numbers.
I would say that the World Bank, very fortunately for us, had a
sophisticated study that has been made on sight, and we have confidence
in those numbers. But let me further state that without a question,
this is an on-going process, and economics, that's going to play a very
major role. And we feel that much of this money also will come through
private investment that would help supplement what we are talking about
from the World Bank, what we are talking about from the major donor
countries.
MR. McCURRY: Mr. Preston, do you want to add anything? No? Next
question, right here, please.
QUESTION: Matilly Marten, Le Soir. This dispute between the EC and the
U.S. we were told is not over with. The EC had been insisting lately on
a representative role. I was wondering if one of its representatives
could tell us if its participation in a donor committee is that
representative role they were seeking?
FOREIGN MINISTER CLAES: May I underline that the Europeans are here as
partners, not as enemies. All the donors are willing, of course, to
stimulate the economic and social development in the so-called occupied
territories. And all the donors are willing to obtain as soon as
possible concrete results.
That's the reason we, but not only we, were asking for a light
instrument, flexible, adaptable, and we believe that the so-called track
liaison committee is a good formula, where the different donors, the
Palestinians and the Israelis, will meet together.
What can be done in this committee? First of all, I suppose this
committee will play the role of a clearing house. But, secondly, I can
imagine that we will be confronted with very important investment
projects, needing cooperation of several donors, needing coordination.
We admit that the World Bank is going to play the role of expert, of
course, I suppose, in cooperation with other institutions, having
developed experience and know-how in the regions, as, for example, the
European Investment Bank.
May I stress that the working groups, as created the multilateral
working groups, as created in the free world of the Madrid Conference,
are going on to play their role.
So, ladies and gentlemen, there is no dispute. On the contrary, we are
ready to work together in order to start immediately in order to obtain
concrete results.
Thank you.
QUESTION: My questions are directed, please, to Secretary Christopher.
I assume, Mr. Secretary, that you are the chairman of the program here,
and that you will be in charge of the flow of donations and so on to the
World Bank, or however that's going to work. And then I'd like a
follow-up.
SECRETARY CHRISTOPHER: Well, we were a chair of this conference along
with the Russian co-chairs, and we'll be following through on this
matter to try to make sure that the funds that were pledged today reach
this coordinating mechanism that's going to be set up, the liaison
committee, and the World Bank as secretariat. The United States will
certainly not draw back from its leadership role in this area. On the
other hand, as Foreign Minister Claes said, we're in this as partners,
and we don't want to take an unduly significant role. We just want to
get the job done.
QUESTION: I'm sorry, I didn't introduce myself. My name is Joseph
Polakoff. I write for Jewish newspapers. My second question is before
the flow of money goes into the area, apart from the immediate need for
the people who are in desperate need, will that money be withheld until
the PLO irrevocably rescinds all the elements in its covenant that
pertain to Israel? And, secondly, the Arab countries apparently have
said the end of the boycott is not coming. It's still in effect. As a
matter of fact, it might even increase, the economic boycott of Israel,
that is. And will that be handled by this group that is dealing with
the donations?
SECRETARY CHRISTOPHER: With respect to your first question, we expect
the PLO to carry out the commitment that they made to Israel in the
bilateral agreement that was signed and announced at the White House.
On the second aspect of the matter, I think this group that's been set
up, this liaison group, is to try to handle the funds that are being
collected here and put them to good use in the occupied territories. I
don't think it assays a broad political role.
We have been urging the parties in the region to recognize the
significance of this major step in various other ways: to the meetings
they hold, to the statements they make, to the decisions they make with
respect to the boycott or recognition. But those are sovereign
decisions and I don't think this group -- they will have enough to do in
disbursing these funds effectively.
QUESTION: Mr. Secretary, do you suppose it would be fair for this group
to state formally to the Arab nations participating in the boycott, the
Arab League, that it should rescind this element that's impeding
progress in the Middle East?
SECRETARY CHRISTOPHER: This group was drawn together as a Donors
Conference, and I don't want to try to commit them to any broader or any
different political purpose. As I say, I think we'll have enough to do
to carry out the very major task that's been undertaken here.
MR. McCURRY: Let's try to restrict follow-up questions. Mark.
QUESTION: Can you tell us if the World Bank target is $2.4 billion or
$2.5? And, secondly, Secretary Christopher, could you comment on the
fact that of the Persian Gulf countries, only Saudi Arabia has pledged a
specific dollar amount?
SECRETARY CHRISTOPHER: As Secretary Bentsen said, this is a situation
that's evolving very rapidly. It was only a week or so ago that the
World Bank estimated $3 billion over ten years. I'm sure that Mr.
Preston can say whether it's $2.4 or $2.5 billion. But the important
thing is that the conference here today was a striking success, however
you measure it -- $600 million over the first year. If you extrapolate
that, that will well exceed over the five-year period the World Bank
target, whether it's 2.4 or 2.5.
With respect to the other Persian Gulf countries, I'm not sure, Mark,
that your facts are exactly right. As I recall, the UAE pledged a
specific amount. I would say that this conference has come together
very rapidly. Of the 46 countries, I suppose there are some place
between five and ten who quite understandably said that they had not
been able to take a governmental decision and would be getting back to
the group in the near future.
As to any specific country, I would suggest you direct your questions to
them -- they're all here in the audience -- rather than for me to try to
answer them. Thank you.
MR. McCURRY: A question over here.
QUESTION: I am Eli (inaudible). I am with (inaudible) TV. My question
is for Minister Kozyrev, and it will be in Russian.
(Through interpreter) Mr. Minister, what size will be the Russian
contribution, and does Russia plan to offer some other type of
assistance to this region, perhaps technical assistance?
FOREIGN MINISTER KOZYREV: Yes, do we plan to offer assistance. First,
political, because only the first step has been taken. This is a very
important step, it's breakthrough, but it is very important that there
be other measures, and that it be followed up not by counter-
accusations, exchange of accusations, but work in all directions of
resolving and in the long run a comprehensive peace.
And, second, in terms of economic assistance, we plan to assist mainly
within frameworks of technical assistance program through specialists,
building of roads, infrastructures and water management systems and
other projects of this sort -- preparation and training of personnel.
I think that there is a special niche which we can fill. And in the
future I think as the program progresses we will also have a role.
Thank you.
QUESTION: A question for Mr. Kozyrev. I'm Gary Lane, CBN News here in
Washington. Mr. Foreign Minister, with all due respect, sir, how can
your nation expect in the unstable situation in Russia to promote
stability in the Middle East at this time credibly? And I'd like to
follow up, please.
FOREIGN MINISTER KOZYREV: Please, I answer both. Please do, follow.
QUESTION: The follow-up question would be your people have had a long-
time relationship with Syria. What have your discussions been with the
Syrians to get them to jump on this bandwagon to a comprehensive peace
in the Middle East? Thank you.
FOREIGN MINISTER KOZYREV: That's what I suspected, that the second
question would make much more sense than the first one. (Laughter and
applause) Thank you very much for the second one.
Really, we have a long history of good relations with Arab participants
and not so long but a very encouraging history of good relations with
Israel. And I hope that this historic ties and practical political
needs would help us to encourage parties, especially on the Syrian and
Israeli track which is to my mind the priority after this particular
achievement in Palestinian-Israeli negotiations to reach a compromise
which would lead also to comprehensive peace in the Middle East. This
is very high on our agenda. Thank you.
MR. McCURRY: Last two questions here.
QUESTION: My question is to Mr. Christopher. Mr. Christopher,
Jerusalem is the lifeline of the Palestinians, especially in the field
of education and health. Will these funds be allowed or available to
the Palestinians to be used in Jerusalem to revive the institutions in
Jerusalem or it's going to be waited for the final status negotiations.
I have another question.
SECRETARY CHRISTOPHER: As has been said many times, Jerusalem is one of
the most sensitive aspects of this and the parties have quite
understandably postponed any discussion of it for the final status. The
Declaration of Principles between Israel and the Palestinians recognizes
that, and so I think you're correct in saying that that will await the
final status negotiations.
QUESTION: My second question is, many Foreign Ministers and Prime
Ministers in New York asked you to visit the area, especially to push
the Lebanese-Syrian track. Do you have any plans to visit the Middle
East very soon? Thank you.
SECRETARY CHRISTOPHER: I really am involved in this to serve the
parties, to try to facilitate the negotiations. I'll be prepared to go
back to the Middle East whenever the parties think it will be useful to
them. I think the situation is now that we're moving as rapidly as we
can to achieve what's been done here today, and, as I say, I'll be glad
to go back to the Middle East whenever the parties think it would be
useful.
MR. McCURRY: Last question.
QUESTION: Stephen Greenhouse, New York Times. I address this to
Secretary Christopher or Secretary Bentsen. (Laughter)
It involves money. Maybe I'll address it to Secretary Bentsen. I'd
like to ask more specifically what you have in mind in terms of the
mechanism or vehicle the Palestinians will use to receive and distribute
the money. Has there been much discussion on that over the past 24
hours? Will it be this new Palestinian economic development and
reconstruction authority? Will it be the new civil administration?
What role will the United Nations play?
SECRETARY BENTSEN: Stephen, I would say, obviously, we're not -- don't
have it fully defined yet. But what you're going to see -- insofar as
the immediacy, you're going to see the United Nations doing its help
there -- UNRWA and the rest. You need things in the pipeline to give an
immediate effect, and that will be done. When you're looking at those
things with the World Bank and what will be done through the consulting
committee that will meet periodically, there you're getting more into
the infrastructure and those things that are necessary in the way of
water and sewage and roads and bridges -- the more long-term things.
But it's a constantly evolving thing where the economics are going to be
paramount, and it is terribly important that the private sector be
involved in this. It is not enough just to have the public funds or
from the donor nations, but that we have something that will be of
continuing growth and will become self-sustaining. That's the
objective, I think, of all these donor nations.
SECRETARY CHRISTOPHER: Stephen, I might supplement that. I believe
Secretary Bentsen was out of the room today when the Palestinian
representative indicated that they have created a new committee called -
- I believe the title is something like the Emergency Committee on
Reconstruction and Rehabilitation. He told me that it would be
constituted of the leading economists and businessmen the Palestinians
had gathered together. But I suggest you talk to the Palestinian
representatives here, because he indicated that they have focused over
the last 19 days very hard on that and have now created that kind of a
committee which would be useful in the dispensing of the funds.
MR. McCURRY: Thank you very much, ladies and gentlemen. That concludes
the press conference.
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