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Press Gaggle by Secretary of State Condoleezza Rice, Press Secretary Dana
Perino, and Assistant to the President for International Economic Affairs
Daniel Price
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For Immediate Release Office of the Press Secretary November 23, 2008

Press Gaggle by Secretary of State Condoleezza Rice, Press Secretary Dana
Perino, and Assistant to the President for International Economic Affairs
Daniel Price Aboard Air Force One En route Andrews Air Force Base

˙˙Press Briefings

˙˙˙˙˙ In Focus: APEC 2008

1:55 P.M. EST

SECRETARY RICE: I just want to say a few words and then I'll take your
questions.

The President I think made the point that he had come to APEC every year of
his presidency, even after September 11th, when he went to Shanghai. APEC
is a very special organization and I actually think it has evolved and
gotten stronger over the years. But what it really represents is an
opportunity to unite the interests of countries on the Pacific Rim, and
means for us the countries of Latin America and the countries of Asia, and
they are the most vibrant and vital economies in the world; but they also
are some of our strongest partners.

So APEC, because it goes along that Pacific Rim and brings Latin America
and Asian interests together for us, it's been a very effective
organization.

Dan Price will talk about the meetings and what was achieved. I think
following on the G20 meeting it gave an extremely strong message about the
need to avoid protectionism, very strong free trade message -- these are
largely countries that believe very strongly in free trade and open
economies. I think it was also an opportunity to push forward -- and Dan
can talk about this -- some of the efforts to institutionalize some of the
APEC mechanisms, like the Secretariat and so forth. So it was a very good
meeting.

But it also -- I think you should think of it as highlighting two areas,
two regions in which the President's policies have been extremely
successful. If you look at Asia, the United States has better relations
with China than ever, across the board -- and it's not easy to manage a
very complicated relationship with a country that is emerging in the way
that China is. It's not that we don't have our differences, we do -- on
human rights; sometimes on economic matters, as well, issues of economic
reform.

But whether it is the way that the President has kept at front and center
the importance of the United States remaining open to the advantages of a
growing Chinese economy, resisting protectionist pressures, using the
strategic economic dialogue that Hank Paulson has to press toward an
opening of the Chinese economy; or if you look at more traditional foreign
policy issues like North Korea and the six-party talks, Taiwan -- which
you've had really one of the great secrets is the tremendous progress in
Cross Strait relations between Taiwan and China -- excellent relations,
deepening relations with Japan, deepening relations with South Korea, with
India -- India is not here, but in that part of Asia as well; strong
relations with Vietnam.

Asia has been a very important area for us and an area in which I think we
leave the relationships in a much, much stronger position than we found
them.

Similarly, in Latin America, where I think the President has broken through
an age-old struggle about ideology in Latin America -- this is not a
question of whether countries come from the left or from the right, it's
really an issue of countries that are governing wisely, democratically,
that have open economies that are open to trade and that invest in their
people. And so we have friends from the left, like Brazil and Chile and
Uruguay; and friends from the right, like Colombia.

And the free trade agreements that have been signed with the countries of
this region are the most advanced -- not just in terms of the economics of
them, but also in terms of labor rights and environmental policy. And so
they are kind of models of free trade agreements going forward. And the
President heard that in every meeting that he had here -- the strength of
these various relationships.

And so it was good to come to APEC one last time. But I think what it
really -- this is a multilateral organization, but what you really feel
here is the very strong impact that the President has had and that his
policies have had on our relationships in Asia and in Latin America.

So now I'll take some questions, if you'd like.

Q Madam Secretary, when is the next six-party delegation talks?

SECRETARY RICE: December 8th, they're scheduled for in China. And we expect
that there, there will be a push to finalize the verification protocol.
It's very important that that verification protocol reflect the discussions
that Chris Hill had with his North Korean counterparts when he was in
Pyongyang, a set of assurances that were given. But it's also very
important that it reflects the consensus of the six parties, which is of
the other states of the six parties -- Japan, South Korea, China, Russia --
that this verification protocol is going to have to be robust enough to
make certain that we're dealing with all of North Korea's nuclear programs.

Q When you talk about institutionalizing it and the rest, Dennis Wilder
used the phrase "we're going to put it on paper." Is that really where we
are? I mean, is it --

SECRETARY RICE: The verification protocol is already on paper. There were
some clarifications and assurances that were part of the negotiating record
that now need to be formalized in the six-party document.

Q Are you confident that you'll be able to lock that down and leave not
only the six-party framework in a good spot for President Obama, but
specifically get a verification protocol that works?

SECRETARY RICE: Well, North Korea is not the most predictable country in
the world, so I'm not going to try to predict. But we have very solid
agreement among the six parties -- among the five parties as to what needs
to be done, and I think the North Koreans also know that in order to move
forward.

But let me just note that we also, of course, have had substantial
disablement going on of the North Korean reactor. And some elements of
verification have already begun, like the exchange of documents.

Q Madam Secretary, the President will meet with Prime Minister Olmert
tomorrow. Looking at the Middle East and also North Korea and Iran --
three, kind of, unsettled hot spots, is the President comfortable with
where things stand right now and the situation that he is leaving to his
successor?

SECRETARY RICE: Well, let's remember you always leave something to your
successor. It's not as if foreign policy ends when one administration ends
and another begins. But I think that in all of these areas there has been
significant progress that can be built upon. We just talked about the
six-party framework. This is very different than where we found the agreed
framework, which was a U.S.-North Korea bilateral relationship that was
being violated by the North Koreans; it was freezing, not reversing the
program. So I think it's a much stronger place to leave that. And I do hope
we can leave a strong verification protocol, as well.

Q Is there any sense of disappointment at unfinished business?

SECRETARY RICE: Sheryl, the North Koreans took 30 years to get a nuclear
weapons program; I think it might take more than a couple to unravel it.
But I believe very firmly that we've left a good basis on which to do that.

If you look at Iran -- again, I remember my first trip to Europe as
Secretary in 2005, and what struck me was that somehow the United States
was viewed as the problem. This was -- the Europeans were all talking about
Europe needing to mediate between Iran and the United States. You don't
hear that any more. You hear a strong consensus that the Iranians need to
stop their -- to freeze their enrichment and reprocessing activities. You
hear a strong consensus that they can have peaceful uses of nuclear --
peaceful nuclear uses, but not anything that would lead to a weapons
program. You have a strong consensus that's not just the six parties, but
also four Security Council resolutions.

And so I don't know when it will -- the time will come that an Iranian
leadership will finally look around it and see its isolation and see what's
happening to its economy and see that the Iranian people deserve better.
But I do know that the international pressures are there and they've been
built painstakingly over time.

And, finally, on the Middle East -- we found the region for the
Israeli-Palestinian issue frankly literally in flames. Second intifada had
begun. Over the next year there would be major Israeli military operations
and the reoccupation of the West Bank; no talks -- Ariel Sharon had come to
power not to make peace, but to defeat the intifada. Yasser Arafat had
turned his back on peace and was taking arms from Iran and corrupt and
continuing to deal with terrorists.

And you just have a fundamentally different situation now. Out of the
Annapolis process you have a robust negotiating process between the parties
for the first time in seven years. I can tell you that they've made a lot
of progress -- and they told that to the Quartet last week. We have a lot
of work being done from the ground up, in terms of building the
institutions for the Palestinian state -- security forces, Salam Fayyad's
economic activities. And you have Arab support. The Saudis were at
Annapolis under their own flag for the first time, and they've maintained
their interest and support for this process.

So I think even though there was not an agreement by the end of the year,
it is really largely because of the political situation in Israel. It's in
pretty good shape.

Q Is the meeting with Olmert just a farewell, or is it more?

SECRETARY RICE: Well, there are always things to talk about between the
Prime Minister and the President, and I'm sure they'll have a robust
discussion of all the regional issues. And there are still a number of
things that the Israelis are doing and need to continue to do to strengthen
Palestinians. The work on road map obligations; the work on the movement
and access issues; the work on helping to build Palestinian institutions.
All of these are issue that still need to be addressed, and they will be.

Okay? Great.

Q Is this your last summit, also, Madam Secretary?

SECRETARY RICE: It's my last APEC summit. I have a ministerial next week,
so I'm off to Brussels -- or to London and then Brussels. So I've got a bit
more traveling, unfortunately, to do.

Q Are you looking forward to transition meetings with Senator Clinton?

SECRETARY RICE: I look forward to transition meetings with whomever
President-elect Obama names. There are some very capable people that are
being talked about. But I think we ought to allow the Obama transition,
President-elect the courtesy of naming his people.

Q And after January 20th what are you going to do?

SECRETARY RICE: Get back west of the Mississippi as fast as I can. I'm
going back to Stanford/Hoover. I will write a book or two, or so. I am
going to also get reconnected to some issues that I was involved in before.
You have to remember that before taking on the national security job I
actually was not doing foreign policy for six years, I was provost at
Stanford.

I am a major advocate for K-12 education. I started a nonprofit in 1992
that's now got five centers. And I want to work on those issues because --
you know, it's been great, this is a fabulous country and there is no
greater honor than representing this country. And you recognize that we are
really -- we are respected, maybe even a little feared through military
power; admired, maybe even a little envied for economic power. But
fundamentally admired for the sense that in America it really doesn't
matter where you came from, it matters where you're going; and that people
of humble circumstance do rise to the top.

And I've always thought that if we're going to be confident and lead --
which we really have to do; the United States has to do -- we have to make
sure that our own fundamentals are strong. And my own concerns about the
state of education in America are pretty strong at this point. You know, as
an educator it just breaks my heart that there are kids -- particularly
kids in public schools -- who are not being educated for the jobs of the
21st century -- math, science, technology; but also who just are not going
to make that breakthrough that education gives you to personal fulfillment.

But as Secretary of State it's terrifying, because if we can't compete,
we're not going to lead and we are going to turn inward. So I think I can
use the dual citizenship as an academic and as a former Secretary of State
to really talk about the education issues as a national security priority,
and that's one of the things I'll do.

Q Will your book be an autobiography?

SECRETARY RICE: I don't know, Sheryl, I'm still -- right now I'm still
trying to get through the next few weeks and then I'll sit down and think
about it.

Q And are there any plans for some of the longtime advisors to the
President -- people like yourself, who have been with him for eight years
-- to get together before you leave? Is there a dinner or some sort of --
are you going to have reunions?

SECRETARY RICE: You mean a commencement dinner? We'll have that, I think.
(Laughter.)

MS. PERINO: And now Dan Price will give a readout on the meeting.

MR. PRICE: We just completed a very successful summit. This was President
Bush's eighth APEC meeting. The priorities of the United States were very
well reflected both in the discussions of the leaders, as well as in the
resulting statements.

I'll get to those in a moment, but I did want to point out that at a
certain point during the second leaders' retreat at the leaders' meeting
this morning, President Yudhoyono made a point of thanking President Bush
for being such a good friend of APEC, for his commitment to the region, for
being a very good listener, a supporter and advocate of free trade. And
this was greeted by a round of applause by all the leaders.

In terms of what was covered, as I indicated in a statement that was
circulated yesterday, there was very, very strong support for and an
endorsement of the work of the G20 leaders, both with respect to dealing
with the financial crisis and getting the economies going. There was a
resounding rejection of protectionism. The commitment to continue trade and
investment liberalization in the region was palpable.

The strong sentiment to conclude a framework agreement, that is the
modalities agreement, on Doha was very, very strong. In my experience in
this job, the conviction to get it done was unprecedented. Indeed, a number
of the leaders noted a certain amount of frustration, saying that in these
Doha negotiations we always seem to be finding ourselves in a dynamic where
we're catering to the lowest common denominator and trying to please the
country in the room who wants to deal the least. Another leader --
actually, a couple leaders suggested -- we need to push forward on Doha,
and if there are countries who don't want to join in, so be it.

I say these two points only to give you a sense of the degree of commitment
of the leaders in the room to try and get this done.

On the topic of regional economic integration: There was universal support
for continuing these efforts, both through the work of APEC on developing
these so-called model measures, or model chapters of FTAs; but also leaders
spoke about the need to harmonize and rationalize existing FTAs in the
region to help deal with this kind of -- some refer to it as this "noodle
bowl" of bilateral and regional trade agreements.

There was a great deal of discussion and support for the transpacific
partnership -- the new FTA negotiations among Singapore, Chile, New Zealand
and Brunei -- that the United States announced that it would join in
September, and that Australia and Peru announced yesterday that they would
join. There was a great deal of interest in this agreement as one of the
paths to realize a free trade area of the Asia Pacific.

On climate change, there was a good discussion about efforts underway both
through the U.N. framework convention talks and through the major economies
process. Indeed, the leaders welcomed expressly the positive contributions
of the major economies process to addressing climate change. There was
discussion of the need to foster cross-border energy trade and investment,
and to continue the work to enhance energy efficiency.

A number of countries described what they were doing unilaterally to deal
with efficiency and to pursue alternatives. A number of countries noted the
efforts of the United States, Japan, UK and others in the clean technology
fund, to help get existing technologies, clean technologies to the
developing world.

President Bush emphasized his continued support for addressing climate
change comprehensively -- which, as he explained, in order to have an
effective agreement you needed commitments of all major economies to either
reduce greenhouse gas emissions or slow their growth; you needed to
continue to invest in new technologies; and you needed to get existing
technologies deployed in the developing world so that they could take a
cleaner path towards economic development than was available when the
industrialized nations were developing.

He also pointed out that as we focus on these issues -- climate change,
economic integration -- we cannot lose focus on the need to help the most
vulnerable, and to alleviate human suffering of those afflicted with AIDS,
malaria, TB, hunger and neglected tropical diseases.

Next there was a very thorough discussion of disaster preparedness. Many
countries in the region have been severely affected by natural disasters.
And there was a great deal of discussion about the need to coordinate and
enhance disaster preparedness at the regional level.

There was a good discussion of food and product safety. And there was also
a very good discussion of food security, the need to foster climates
conducive to increased research and development and investment in the
agricultural sector; the need to boost production and the need to promote
science-based regulations so as to encourage the adoption of advanced
technologies, including biotechnologies.

There was also a discussion related to food, of the need to enhance the
local capacity to deliver food, both through removing infrastructure
bottlenecks and through adjusting our aid systems to enhance local
purchase.

Finally, there was a good discussion of corruption and the declaration well
reflects this, and I refer you to that. This was a very important issue to
the United States because corruption truly is a serious threat to social
and economic development in the region. And there was a renewed commitment
of the leaders to address this and to criminalize corrupt conduct.

I think I'll stop there.

Q Dan, I had two questions, please, on the economy. In its final
declaration, APEC or APEC leaders said that the financial crisis be fixed
in 18 months. Can we assume that President Bush supports that timetable and
believes in that timetable?

MR. PRICE: That particular sentence was added by the President of Peru, as
the Chair. Certainly some in the region think that recovery may take 18
months. President Bush believes that the actions we are taking now will
begin to produce results in the much nearer term, in the coming months. But
again, coming back to the key point that with countries agreeing to pursue
pro-growth policies, reject protectionism, ensure continued trade and
investment liberalization, the President shares the confidence that we will
be able to get through this crisis.

Q And also, this is obviously a pro-trade organization -- in the meetings
did the leaders express concern about what might happen under an Obama
administration? Was there a sense of apprehension, of maybe sealing up Doha
and other deals now, before President Obama takes office? Any concern like
that that you heard?

MS. PERINO: I'll say that from my perspective there was a general feeling
of a concern of protectionism, and that's been true at the previous
meetings. The next administration will have to make their own policies and
make their own way, and they'll be here next week. But we're not waiting
until next year to help them start transitioning, because a lot of leaders
have already been in touch with them.

Trade was a big topic on the campaign. And you've heard from us what our
policy position is. The leaders at APEC, which represents 21 countries,
plus the G20 from last weekend -- some of that is overlap -- but they
recognize that the best way to move forward and improve economies and
ensure growth is through free trade.

So I think there was a general concern about protectionism. This goes back
to the President's concern from I think the 2005 or 2006 State of the Union
-- I think 2006 -- when he talked about the concerns about countries that
have a tendency to turn inward and throw up barriers. He did a lot of
studying and reading up over the years in regards to what happened in 1929,
when we in our country, we raised taxes and then we passed the Smoot-Hawley
Act, which was anti-trade. And then what followed was a very rough decade
of the Great Depression.

And I think that the more that we can do what Secretary Rice was just
talking about -- continue to educate our people, make sure that they're
confident, that they can compete in the world -- that we will be able to
foster more free trade because it's good for our workers and it's certainly
good for these countries. And what happens there affects us, too, and we've
seen that in this global economic crisis, that we're all inter-connected
and inter-related.

Q You know, all this talk of protectionism, I mean, many of these nations
are among the most protectionist in the world. You know, how do you square
that circle, basically? You know, you've got a lot of people at this table
that already have extremely protectionist policies in place, so it's fine
for them to say, well, we're not going to make it worse. But they've
already got much higher trade barriers, for instance, than the United
States might have. And that could have an impact down the line, in terms of
the political pressure that comes on the issues that don't have those kind
of barriers.

MR. PRICE: Let me respond to it in two ways. Certainly there are many
countries in APEC whose economies are less open than our own. There's no
question about that.

With respect to the commitment not to raise new trade and investment
barriers for the next 12 months, that's significant because although they
may have the right to do so under WTO rules, what they're saying is, we
won't do that; we are not going to exacerbate this economic downturn by
throwing up new barriers, number one.

Number two, they also said, we are committed both to the successful
conclusion of a Doha Round -- which is going to require a lowering of trade
barriers and new market access for good, services and agricultural
products. And they said they're committed to continuing down the road of
regional economic integration, as well, which will have a similar result.

Q I have a question on Doha. There was another extra push on Doha in the
statement. But you have countries like India and Brazil, who are not
present -- they've been some of the biggest obstacles to completing a Doha
Round. What would be a reason for any kind of optimism.

MR. PRICE: India and Brazil, while not at APEC, were at the G20 meeting.
And like the other leaders at the G20 meeting, they threw their strong
support, one, to reject protectionism, and, two, to get a Doha modalities
agreement done this year. That was determination expressed at the leaders'
level that included India and Brazil. And although they were not here, they
made their views clear at the G20 summit in Washington.

Q So you're going to hold their feet to the fire, then?

MR. PRICE: Leaders mean what they say and we will seek to ensure that all
leaders do what they say.

Q Just a practical question for those of us who don't follow Doha so
closely -- is there a set expiration date to the talks? Do they continue on
after President Bush leaves office? Or what is the time frame?

MR. PRICE: There is no set expiration date for the talks. We came very
close in July, as you know. And countries feel that with a final push we
stand a very good chance of concluding modalities this year. That will then
leave some negotiation for next year's -- not "some," a significant amount
of negotiation after modalities in terms of negotiating the precise tariff
schedules, as well as making more concrete the services commitments.

Q Do you feel that these two summits taken together -- would you go so far
as to say that these two summits have revived the Doha talks? Have they
breathed new life into these talks?

MR. PRICE: I would say that these two summits coming in such close
succession with the significant players all represented at one summit or
the other -- it shows a renewed, if not newfound, commitment to completing
a modalities agreement this year.

And if I could just offer a final observation, the United States came to
APEC with an affirmative agenda -- not simply to say goodbye, but with a
strong, affirmative agenda. And that agenda we believe is realized and well
reflected not only in the declarations, but in the statements of other
leaders who signaled their broad support for that agenda.

Thank you.

Q Dana, on a separate topic --

MS. PERINO: You guys are killing me. Just kidding. We're killing Ellen.
(Laughter.)

Q There's been some speculation that Citigroup might be rescued by the
federal government. Do you know of any talks going on between Citigroup and
--

MS. PERINO: I don't.

Q Is Citigroup one of those items that's too big to fail?

MS. PERINO: You're going to have to call the Treasury Department. I don't
have anything for you. I've been here in Lima, Peru, and any talks like
that would take place between the Treasury Department, not at the White
House.

Q Do you know if the President would be supportive of a federal rescue?

MS. PERINO: I'm not going to comment on it. I'm just going to refer you
over there, to the Treasury Department.

Q Dana, is the President wistful after this final summit?

MS. PERINO: No.

Q No?

MS. PERINO: He's ready to go home.

Q Where is Mrs. Bush?

MS. PERINO: She's up there with little Barbara -- little Barbara Bush --
they call her little Barbara, that's just her nickname. Their daughter is
here.

Q What was the electric guitar for in the meeting with President Garcia?

MS. PERINO: I did not see it, I don't know. Do you know about an electric
guitar?

MR. SICILIANO: It was a gift, but I'll get more details.

MS. PERINO: It was a gift; we'll find out.

Q Did you have a favorite bib?

MS. PERINO: What?

Q Did you have a favorite bib?

MS. PERINO: Bib?

Q Did you not see the bibs?

MS. PERINO: Bibs? Or would you call them a poncho?

Q No, no, no, what they made the press wear -- red bibs, yellow bibs, blue
bibs.

Q This was basically about us being --

MS. PERINO: It would be fun to see you humiliated like that.

Q What about the President, did he like the poncho?

MS. PERINO: He always enjoys the costume picture. (Laughter.) Don't they
all? Can't you see the look on their faces?

Okay. Thanks, guys.

END 2:27 P.M. EST

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