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U.S. DEPARTMENT OF STATE
95/06/13 Briefing on President's G-7 Summit Trip
Office of the Spokesman





                             THE WHITE HOUSE

                        Office of the Press Secretary
____________________________________________________________________
For Immediate Release                                  June 13, 1995
    


                            PRESS BRIEFING
                                 BY
                SECRETARY OF STATE WARREN CHRISTOPHER
                 AND SECRETARY OF TREASURY BOB RUBIN


                        The Briefing Room


11:57 P.M. EDT


MR. MCCURRY:  Good morning, everybody.  I think it is useful to keep in 
mind as President Clinton heads to his third summit meeting of the G-7 
group that, as he's often said, in order to be strong abroad, America 
really needs to be strong here at home.  And it is, no doubt, true that 
the very sound economic and budget policies that the President has 
pursued over the last two and a half years have helped build that 
foundation upon which the President goes to Halifax to be in a strong 
position to make arguments about the necessity of American leadership in 
building global prosperity using the economic architecture that is 
available in this post-Cold War era to make the world a more sound and 
more prosperous place for all citizens.

The President's speech tonight, he believes, will contribute to the 
argument that he makes often in front of his counterparts in the G-7 
that America is restoring fiscal discipline to its own economic and 
budget affairs.  And that, in turn, allows America to be in a stronger 
position as it exerts its leadership on the world scene and in the 
global marketplace.

We're not, obviously, here now to talk about that, but that is a part of 
the context in which the President journeys to Halifax.  So I would ask 
you in that spirit, knowing how thoroughly compliant you all are, that 
we try to confine our questions for Secretary Christopher and Secretary 
Rubin to the agenda that will be addressed at Halifax.  There will be 
ample opportunity later today to talk about some of the issues in the 
news.

No deal, Helen says.  (Laughter.)  Not unpredictably, an objection is 
heard.  But if you can respect both the Secretaries' time and their 
brief that they have here today.

We're delighted to have Secretary of State Warren Christopher and 
Secretary of the Treasury Bob Rubin here to add one more element to the 
briefing we're doing in the -- advance of the G-7 Summit. I'll turn it 
over to, first, Secretary Christopher, and then Secretary Rubin, and 
they'll take questions.

Thank you.

SECRETARY CHRISTOPHER:  As Mike said, I'm not here to talk about the 
budget.  Secretary Rubin and I on Thursday will accompany the President 
to Halifax for his third summit with the leaders of the G-7 nations.  
This summit, as the preceding summits, will address an array of economic 
and security challenges that require some global thinking and global 
strategies.

Most fundamentally at the summit, the President will continue to lead 
the effort to build a new global economic architecture, which has been 
one of his most important international missions.  His overall 
objective, of course, has been to open and modernize the world's 
economic system and to expand it by integrating with it our former 
adversaries.

With the completion of the Uruguay Round, NAFTA, and the open trading 
commitments which were taken at APEC and then at the Miami summit, I 
think it is fair to say that the President has built the most 
significant record of accomplishment in the international economic arena 
in opening up international markets of any President in half a century.

At Halifax, we'll look for progress in three broad areas. First, we'll 
seek to strengthen our ability to address new challenges in global 
financial stability, such as the financial crisis in Mexico. Secretary 
Rubin will address this important topic in more detail.

Second, we'll follow through on an initiative that President Clinton 
proposed at last year's summit, namely to reform international economic 
institutions, especially those responsible for development and 
environmental issues.  And, third, we will seek to improve international 
issues on new security challenges, such as organized crime, terrorism 
and nuclear smuggling.

The political part of the summit, which is traditionally on the second 
day, will also give us the opportunity to address several areas of 
continuing concern, especially Bosnia, the Middle East, and reform in 
Russia and Ukraine.  The President will also hold important bilateral 
meetings with President Yeltsin and Prime Minister Murayama.

The need to revitalize the international institutions is a basic 
principle of our foreign policy.  In this respect, the United States and 
the other G-7 nations share a strong interest in an effective and 
efficient United Nations.  We expect the summit leaders to address the 
consolidation and streamlining of the United Nations economic, social 
and environmental organizations.  They will consider what role these 
institutions should play in light of changing world conditions and in 
light of the creation of new institutions such as the World Trade 
Organization.

Most of the economic issues at the summit will be dealt with at the G-7 
level.  As there was last year, there will be a 7-plus-1 discussion on 
political issues which Russia will participate at the same level of 
engagement as they did last year.  The summit Chairman's statement will 
reflect our consensus, together with Russia, in a number of key areas, 
beginning with our shared security challenges.

In the wake of the bombings at Oklahoma City and the World Trade Center, 
as well as the recent incidents of nuclear smuggling, it is absolutely 
clear that problems like proliferation and terrorism and organized crime 
intersect to pose a clear threat to our society and our nation's 
security.

In Naples, the leaders addressed the threat of nuclear smuggling for the 
first time.  Now in Halifax, we'll urge that we develop concrete plans 
to develop systems of control, accounting and fiscal -- physical 
security for nuclear materials, as well as to our expand our cooperation 
with other nations and customs, intelligence and law enforcement.

We must also seek to resolve -- seek to reinforce our resolve to defeat 
terrorism.  The summit nations must work closely together to ensure that 
terrorists have nowhere to raise funds and nowhere to hide.  We will be 
discussing measures to deter and investigate terrorist acts.  We must be 
just as determined to combat organized crime which breeds corruption and 
undermines emerging market democracies.

The G-7 nations should cooperate to reinforce organizations like 
Interpol and the Financial Action Task Force, and to exchange vital 
information and to cooperate with other countries toward that end.

As always, the summit will deal with a number of important regional 
issues.  We hope the leaders will reaffirm the support of the G-7 and 
Russia for the Middle East peace process and call for an end to the 
boycott against Israel.  We will need to discuss the full implementation 
of the security council resolutions against Iraq and Libya.

The summit should also review Iran's record of terrorism and the backing 
of radical groups that seek to destroy and undermine the Middle East 
peace process.  The President also intends to raise our grave concerns 
about Iran's nuclear ambitions

We also expect the summit's Chairman's statement to endorse the agreed 
framework between the United States and North Korea as the best way to 
achieve a non-nuclear Korean Peninsula.

I want to welcome the agreement achieved today with North Korea in Kuala 
Lumpur in Malaysia.  That is a very important step forward.  Under the 
agreement, the KEDO Consortium will take over direct negotiations with 
North Korea to implement the lightwater reactor project.  The effect of 
this agreement is to confirm the central role of the Republic of Korea 
in the project and to confirm the South Korean origin of the reactors.

Let me say that this agreement reached in Kuala Lumpur opens the way to 
further implementation of a framework agreement, and, very important for 
our security, continues the freeze of the dangerous North Korean nuclear 
program.

I want to compliment the negotiators.  It was a first-rate job of 
negotiation, and I think it moves this process a very important step 
forward.

In our first two years in office, these G-7 meetings have been very 
important in setting a global agenda and enforcing action. American 
leadership was important in Tokyo in mobilizing assistance to Russia and 
providing a strong impetus for the completion of the Uruguay Round.  Our 
leadership last year in Naples was important in spurring our efforts to 
back reform in Russia, as well as in Ukraine.  I think it will be 
equally important this year in advancing the agenda that I have outlined 
here very briefly today.

Now Secretary Rubin will elaborate on the financial and economic aspects 
of the agenda.

Bob?

SECRETARY RUBIN:  Thank you, Chris.  

As Secretary Christopher said, let me focus for a few moments, if I may, 
on the economic side.  Halifax is the opportunity for the leaders to 
discuss the global economic challenges that are absolutely critical to 
our economic future -- jobs, increased standards of living for 
Americans, for all the members of the G-7.

It is an ongoing process.  There was NAFTA and GATT, WTO, our G-7 
involvement, our discussions with Latin and South American leaders about 
trade and development, similar discussions with the leaders of Asia and 
the Pacific.  Halifax is very important, but Halifax is part of a 
process of meeting the great challenges of the global economy.

Let me briefly review these challenges, if I may.  First, dealing with 
the problems that can arise in the vast and rapidly moving global 
financial markets; second, integrating the developing and transitioning 
world into a global economy by promoting reform and growth; and, third, 
continuing trade liberalization.

I believe in Halifax we will reach broad agreements on the principle of 
more timely disclosure of national financial information. That is a 
primary lesson of the problems that transpired in Mexico earlier this 
year.  Disclosure is at the heart of the regulatory system in the United 
States, and we believe that disclosure could have an equally powerful 
effect if it is placed at the heart of the global financial markets.

In conjunction with seeking greater transparency, there will be a 
request to the IMF to develop an enhanced capacity for economic 
surveillance.  In addition, I believe there will be general agreement on 
the requirement to rapidly mobilize larger amounts of multilateral 
conditional financial assistance than is now available, and from a 
broader array of countries.  The United States clearly cannot be the 
lender of last resort.

There will be discussion of a cautious exploration of methods for an 
orderly working out of international debt crises and broadening the 
class of creditors at the table in a world where creditors are no longer 
half a dozen or a dozen banks, but rather the vast array of institutions 
that today invest in international securities.

There will also be discussion of greater cooperation amongst financial 
regulators and supervising financial institutions and financial 
instruments with respect to problems that can arise from the markets 
themselves.

There will be discussion of World Bank reforms to continue the emphasis 
on women's education, the environment, health, supporting the private 
sector and continued internal reforms and transparency at the banks 
themselves.

One final note:  With the President's leadership, we are going into this 
G-7 meeting with a strong two and a half year economic record, despite 
current softness.  Inflation is relatively low.  The deficits our G-7 
partners criticized us for so long have come down substantially.  Our 
deficit to GDP ratio is now the lowest in the G-7, and we've had good 
job growth and job creation.  I believe it is important that other 
nations consider steps that would sustain their expansions.

Meanwhile, we are continuing to work on our budget deficits and the 
other factors critical to a healthy economy, as the President will 
discuss in his budget address this evening.

Thank you.

QUESTION:  Why all the urgency behind that balanced budget speech 
tonight?

SECRETARY RUBIN:  Oh, I don't think there's any urgency at all.  The 
President has been involved in a lengthy process of focusing on the 
trade-offs with respect to all of the factors that will determine what 
kind of economy we are going to have in the year's ahead, job increases, 
increases in standard of living, and this is the fruit of an enormous 
amount of work about what we need to do for our economy.

QUESTION:    -- talking about --

SECRETARY RUBIN:  He will be addressing that this evening, and I think 
you will find it of great interest -- and very thoughtful.

QUESTION:  If it's so important why wasn't it done in the first place?  
Why wasn't it done earlier?  Why now?

SECRETARY RUBIN:  Because he was committed to addressing this in an 
exceedingly thoughtful fashion and to look at everything that was 
relevant to how our economy performs, and then to put together his 
budget when he had completed his review.  And that's what he has done 
now.  And I think when you listen to him tonight, what you will hear is 
a man addressing in exceedingly thoughtful fashion the requisites for 
continued economic growth in this country.

QUESTION:  Secretary Christopher, can you tell us, does the President 
have anything new to say about Bosnia, any new initiatives? Have they 
gone back to the status quo ante?  Are we going to get the hostages 
back?  Where does it really stand now?  There seems to be a real -- last 
weekend all the stories were that everything was on hold.

SECRETARY CHRISTOPHER:  There are four or five questions there, but let 
me say that --

QUESTION:  It's all one question.

SECRETARY CHRISTOPHER:  Well, the decisions that were taken in 
Netherlands last week are the same ones that we're being guided by now.  
That is that UNPROFOR will stay in Bosnia.  That's a courageous decision 
taken by the British and the French.  UNPROFOR will be strengthened 
through a rapid reaction support which the United States strongly 
supports.

I talked with my colleagues, the Foreign Minister of France, Mr. De 
Charette; and Foreign Minister Hurd this morning, of Great Britain, to 
assure him of our support for that, and we'll be working together on 
that project.  But we'll also be renewing our efforts to seek a peaceful 
solution.

Tomorrow I'll be meeting for breakfast with Prime Minister Heris 
Silajdzic of Bosnia, and then later in the day with Carl Bildt, who is 
the new negotiator for the European Union.  I'm sure that Mr. Bildt, who 
has a distinguished reputation, will take an important role in trying to 
move the negotiations forward.

So, essentially, this is nothing new that I'm saying here now, but the 
essence of it is -- UNPROFOR will stay; UNPROFOR will be strengthened.  
We hope and expect the hostages will be released promptly; they never 
should have been taken, and they ought to be released right away.  And 
we will continue to seek the elusive but extremely important goal of a 
negotiated settlement, for that is the only sensible outcome to this 
tragic conflict.

QUESTION:  Why do you think the Serbs are still holding about 16 U.N. 
personnel?  Do you think they're still trying to blackmail the U.S. and 
the European allies?

SECRETARY CHRISTOPHER:  Well, I hope they don't do that. They've been 
releasing the hostages sequentially.  They promise to release all of 
them.  President Milosevic has indicated they will all be released, and 
they certainly should be, and I hope they will be.

QUESTION:  Secretary Rubin, since Mexico is high on the agenda, can you 
tell us when do you expect that the United States will renew its exports 
to Mexico?  And what are your expectations this year for the recovery of 
Mexico, the economic recovery?

SECRETARY RUBIN:  We think that Mexico has adopted a --and I've said 
this -- we've said many times -- adopted a very sound and politically 
courageous program.  They are doing the things they need to do.  We are 
very encouraged by the signs that we see, and we think the prospects for 
Mexico are quite good.

We, meanwhile, have put out an announcement, I think it was a couple of 
weeks ago, saying that we have $10 billion of additional assistance 
available if needed, and assuming Mexico continues to meet their 
conditions.

To get back to Halifax, for the moment, what is so important about -- 
one of the many things that's important about Halifax is, from Mexico 
the world learned that these very large global financial markets that 
are so important to economic development around the world can also from 
time to time create problems.  And at Halifax the leaders will be 
considering what kinds of measures can they take that will be preventive 
-- that's transparency and surveillance -- and what kinds of measures 
can be cured if problems develop -- and that's the enhanced financing 
mechanism.

QUESTION:  But do you think that the plan of the United States and the 
front is working, the backing is working, which is also what this G-7 is 
about -- the backing that they have to give to --

SECRETARY RUBIN:  We believe that the signs in Mexico are very 
encouraging.  And we are very encouraged by the prospects.

QUESTION:  -- now the likelihood of real deficit reduction almost 
guarantees, as the President is now coming on board in a strong fashion, 
it seems, is it now incumbent upon the Federal Reserve to take a second 
look at interest rates since we may have a fiscal drag?

SECRETARY RUBIN:  The President has always been on board. In 1993, after 
roughly 15 years or thereabouts of increasing deficits, we put in place 
a powerful deficit reduction.  The President has been the national 
leader on deficit reduction.  And as he will discuss tonight, he is now 
going to discuss the next --

QUESTION:    --

SECRETARY RUBIN:  Oh, that's not true -- A, continued deficit reduction; 
and, B, as he said in his remarks around the budget that we put in, the 
next major step was in the area of health care, which are the only 
health -- only expenditures on the budget side increasing more rapidly 
than the rate of inflation.  And he is now continuing his position as 
the one political figure we've had who really has done something about 
the deficit.

QUESTION:  -- propose this --

SECRETARY RUBIN:  Why don't you -- may I make a suggestion? Secretary 
Christopher and I are to discuss what really is very, very important, 
which is Halifax.  The challenges of Halifax are going to determine what 
kind of economies we have in the world.

QUESTION:  I want to ask about that G-7 summit --

QUESTION:  What steps are you asking your G-7 allies to take to sustain 
the economic growth that we have seen?

SECRETARY RUBIN:  There is a slowdown in the G-7 nations. And what we're 
going to be saying is that we really have, since President Clinton took 
office, addressed the issue that we were most criticized about which was 
our enormous deficits.  We now have the lowest deficit-GDP ratio in the 
G-7.  And we think each of the nations should look to its own 
fundamentals and do what it thinks is necessary.

I think it's fair to say, because we've said this before, that in Japan 
where you have now very low growth -- possibly no growth, depending -- 
and falling prices -- you actually have deflation now -- that 
macroeconomic stimulation would seem to be an appropriate measure to be 
taken.

QUESTION:  -- budget stimulus from Japan.  Are you looking to interest 
rate cuts from Germany?

SECRETARY RUBIN:  I think each nation should look to its own economic 
circumstances and decide what -- just as we are doing and as the 
President has done very forcefully.  I think each nation needs to look 
at its own economic circumstances and determine what it needs to do to 
continue to have solid growth and moderate inflation.

QUESTION:  Secretary Rubin, one of the questions -- one of the things 
that we were told this morning about the so-called urgency for the 
President to deliver this budget address was its effect on the other 
attendees at the G-7.  Can you tell us in what area this is going to 
have influence other than to bolster Mr. Clinton's image as someone who 
is concerned about the deficit?

SECRETARY RUBIN:  I don't think it's a matter of image at all.  I think 
the President has been, as I said a moment ago, a forceful leader in 
bringing this deficit down in this country.  We projected something like 
five percent of GDP at the end of the last administration; it's now 
about 2.7 percent, heading south.  And this discussion tonight will 
continue that process.

He has, as Secretary Christopher said, he had at the Tokyo summit a 
position that no President has had in a long, long time -- he was able 
to go to the Tokyo summit as a President who was attending to the 
affairs of his own country and then speak to the other countries about 
attending to their affairs.  That will continue to be the case at the 
summit we're going into.

But this announcement tonight, the discussion he's going to have 
tonight, is not something that was done in a hurried basis.  This was a 
function of an enormous amount of thought on his part about what is 
necessary for economic growth in this country in the years ahead.

QUESTION:  -- record, theoretically, going into this summit, he would 
have still had that stature as one leader who wanted to cut the deficit.  
So why was it important to come back with something like this before he 
left for Halifax?  Is there some specific reading you're getting from 
the other participants, or some specific proposal?

SECRETARY RUBIN:  No.  He felt that, number one, he wants to make sure 
that we do not run into a train wreck at the end of this year, and he 
felt it was very important to assert his leadership.  And, secondly, he 
has continued, as he has done ever since he took office, to focus on 
what we need to do for our country, or for our economy over the long run 
-- increasing jobs, increasing standards of living.  And having now gone 
through that process, he was ready to address the nation.

QUESTION:  Can you explain to us why he was not capable of doing all 
that thought and going through that process in time for February when he 
made his original budget proposal?

SECRETARY RUBIN:  Clay, I think that he presented an exceedingly 
thoughtful budget in February.  But the budget process, as you know from 
having watched it now for some time, is a process that moves through 
time.  And as this process has moved through time and he has continued 
to think about the factors that affect the United States economy, what 
needs to be done, he has moved the process along, and the results of 
that thinking is what he will be discussing this evening. And I think 
what you will find is a very, very thoughtful discussion and weighing 
and balancing of all of the factors that will determine what kind of 
economy we're going to have in the years and decades ahead.

QUESTION:  He was also expressing his concerns about Medicare and health 
care costs last year when he was putting the budget together --

SECRETARY RUBIN:  That is correct.  And as you will recollect, we came 
forward with a comprehensive health care program. People may not have 
liked all aspects of it, but the opponents, instead of coming to the 
table and trying to work something out, defeated it.

So what he said this year was, I'm going to give you the parameters, I'm 
going to give you the conditions, and within those conditions, we need 
to get a control of the federal health care entitlements within the 
context of health care reform; it's got to be done on a more step-by-
step basis.  Since my leading didn't work -- since my going ahead last 
year didn't work, let me give you the framework, let me give you the 
policy framework; have Congress come back.

Let me say that he's going to discuss a lot of this tonight.  We're 
going to have days and days to discuss this.  Halifax is really 
critically important to what this country's going to be like in the 
years ahead.  And you've got the two of us here.  I'd recommend we get 
back to Halifax.

QUESTION:  In terms of Bosnia, what kind of concrete statement do you 
expect the summit to produce?  And also, do you expect the summit to 
take up the war in Chechnya, the fighting in Chechnya?

SECRETARY CHRISTOPHER:  Well, with respect to Bosnia, I would expect the 
leaders on the so-called political day, the second day of the summit, to 
discuss that.  And I would expect the Chairman's statement after that to 
address Bosnia in pretty much the terms that I have here -- the 
importance of UNPROFOR staying, the importance of strengthening 
UNPROFOR, and the importance of seeking a negotiated settlement in the 
new context that we're in.

QUESTION:    

SECRETARY CHRISTOPHER:  With respect to Chechnya -- no, I would not 
anticipate -- I would not anticipate that this summit would break new 
ground on Bosnia.  But when the leaders meet together, one of the 
reasons they meet together is to have a free-flowing and informal 
conversation.  So I don't want to rule out some action along those 
lines.

As you know, the President will be meeting with President Chirac 
tomorrow, and I'm sure that Bosnia will be a subject of that meeting.  
But, generally speaking, we're on course with respect to strengthening 
UNPROFOR, assembling a reaction force.  We're working together with our 
allies with respect to a U.N.  resolution which will reflect our support 
for that rapid reaction force.  I think that's the context in which 
Bosnia will be addressed.

With respect to Chechnya, as I've said before, I think that 
circumstances like Chechnya affect, at least in part, the degree to 
which Russia will participate in these G-7 meetings.  And I -- so it may 
come up in that connection during the final day of the summit.

QUESTION:  Secretary Rubin, you mentioned --

QUESTION:  -- has to be addressed before Russia or those types of issues 
can be addressed before they're allowed into a G-8?

SECRETARY CHRISTOPHER:  It's never been a threat on our part.  It just 
is a statement of reality that I think that the extent to which Russia 
participates in Western institutions is bound to be affected by their 
conduct in such circumstances as Chechnya.  As you know, it's affected 
their acceptance in the Council of Europe.  It's affected certain 
actions that were planned to be taken by the European Union.  And I 
think it will inevitably affect that and other comparable issues and 
affect, in part, at least, their role in the G-7/G-8.

QUESTION:  Mr. Secretary, do you believe then that the Russians can be 
more effective in Bosnia?

SECRETARY CHRISTOPHER:  Well, the Russians are a part of the Contact 
Group.  We've always thought it important to involve them in these 
negotiations because of the influence that they have with President 
Milosevic of Serbia.  And I continue to think that that's the proper 
strategy.  And so we have involved them in our discussions, and we will, 
no doubt, involve them in the discussions both at the foreign minister 
level, as well as at the leader level in Halifax.

QUESTION:  Do you think they can be more effective?

QUESTION:  Do you think they've been doing enough, Mr.  Secretary?

SECRETARY CHRISTOPHER:  I hope that they will continue to use their 
influence and be even more effective in dealing with President 
Milosevic.  He has shown in connection with the hostage matters that he 
does have influence with Mr. Karadzic, and I think that should encourage 
the Russians as well as others to try to put whatever pressure they can 
on President Milosevic to help achieve a negotiated settlement here.

QUESTION:  Secretary Rubin, you mentioned the economic slowdown in the 
G-7 countries.  But aren't you going to aggravate that problem, 
particularly in the United States, with further fiscal tightening?  If 
you look at recent economic indicators, a lot of the slowdown seems to 
derive from government spending less.  If you reduce deficits further, 
aren't you going to contract -- have a contracting effect on the 
economy?

SECRETARY RUBIN:  I don't think so.  I think the slowdown is a function 
of inventories having built up and now coming back off. Interest rates, 
market-driven interest rates -- let me add, market-driven interest rates 
went up.  That has an economic impact. They've now come back down.  Our 
outlook, as you know -- I think it's very much my outlook -- is that the 
most probable outcome is that we will get back to a soft landing; that 
is to say, solid growth and moderate inflation after a period of 
softness.

If, in fact, this country can really get itself to keep on the road -- 
keep on the road that the President established in 1993, one of fiscal 
discipline, I think you can expect to have interest rates that are 
compatible with the continuation of growth.

QUESTION:  Secretary Christopher, how concerned are you about the 
overflow of the trade negotiations into the security relationship with 
Japan?  And do you feel that the Japanese decision to not back up the 
United States on the embargo with Iran is the first sign of a 
disintegration of that bilateral relationship?

SECRETARY CHRISTOPHER:  Not at all.  I think the overall relationship 
with Japan is a very healthy one on the political side, on the security 
side -- for example, the common agenda we have with them as well on many 
issues such as the environment -- all of those things indicate a very 
strong relationship between the United States and Japan. We think that 
the economic side of that relationship should be strengthened so as to 
bring it into the same good situation as the other aspects of our 
relationship.  But I do not think that these economic tensions between 
the two countries will affect the remainder of the relationship.

With respect to Iran, I think quite the opposite is true. I think the 
fact that the United States took a leadership position with respect with 
Iran, basically cutting off all of our trade with Iran, has been 
recognized around the world as an indication of the seriousness with 
which we view this problem.  I would expect the leaders at Halifax to 
discuss the role of Iran and terrorism and undermining the Middle East 
peace process as well as our concern about their nuclear program.

I see Japan continuing to stop granting of the soft loans or 
concessionary credits to Iran, perhaps as a reflection of the United 
States' leadership.  So I certainly don't see any disintegration in the 
overall relationship.

When the United States took the very bold and courageous action to cut 
off its trade with Iran we did not expect the rest of the world to 
comply immediately or do the same things that we're doing.  But we hoped 
to strengthen their resolve to ensure that there's no nuclear 
cooperation, to ensure that they do not grant concessionary credits, to 
ensure that they do not sell weapons.  Over time we hope they'll come 
into consonance with our overall program but this is a long-term effort 
we have to try to convince the rest of the world of our strong concern 
about what Iran is doing and what it means to the rest of the world.

THE PRESS:  Thank you.

   END 12:30 P.M. EDT
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