===========================================================================
Press Gaggle by Press Secretary Dana Perino, Assistant to the President for
International Economic Affairs Daniel Price; National Security Council
Senior Director for Asian Affairs, Dennis Wilder; And National Security
Council Senior Director for Western Hemisphere Affairs, Dan Fisk
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For Immediate Release Office of the Press Secretary November 21, 2008

Press Gaggle by Press Secretary Dana Perino, Assistant to the President for
International Economic Affairs Daniel Price; National Security Council
Senior Director for Asian Affairs, Dennis Wilder; And National Security
Council Senior Director for Western Hemisphere Affairs, Dan Fisk Aboard Air
Force One En Route Lima, Peru

ÿÿPress Briefings


9:51 A.M. EST

MS. PERINO:ÿ Hello, everyone.ÿ I have a very special treat for you today.ÿ
So we're on our way to Lima, Peru.ÿ You're a captive audience, so I'm just
going to take an opportunity to -- I'm going to give you a schedule update
on a couple of things, I'm going to have Dan Price talk a little bit about
the meeting we're going to.ÿ I also have Dan Fisk and Dennis Wilder to give
you a little bit on what's to be expected with the bilaterals with the
Latin American and Asian countries.

The update for you on the schedule is that, as you know, the President has
been very committed to combating HIV and AIDS and helping people with
treatment and antiretrovirals and prevention.ÿ The program he first
announced in 2003 and expanded in 2008 has made the United States a leader
in these efforts.ÿ We now provide lifesaving antiretroviral treatment for
1.7 million people, and provide funds to prevent an estimated 12 million
new infections every year.*ÿ The program continues to grow.

And Monday, December 1st, is World AIDS Day.ÿ The President will
participate in the Saddleback Church Civil Forum on Global Health with Rick
and Kay Warren.**ÿ It will be in Washington, D.C.ÿ They will discuss
current and future efforts to combat HIV/AIDS, as well as tuberculosis and
malaria.ÿ We will provide details as they're available.

The President and Mrs. Bush will also present the World AIDS Day Ribbon on
the North Portico of the White House earlier that day.ÿ You guys might
remember the ribbon from last year -- we're going to do that again.

Okay, let me turn it over to Dan first, and then we'll go to -- Dan, Dan,
Dennis, and then I'll be around for anything at the end.ÿ Oh, let me just
tell you the President did speak to the Attorney General this morning.ÿ He
said that he sounded well.ÿ I'll refer any questions about his status and
any reports that they want to provide to the Justice Department and we'll
keep you informed if the President talks to him again.

MR. PRICE:ÿ Good morning.ÿ I'm Dan Price, Assistant to the President for
International Economic Affairs.ÿ I'll try and speak up.ÿ I know some of you
attended our briefing the day before yesterday, I believe, so there's a lot
of material for your background in that briefing.ÿ I'll go over some
highlights and try not to repeat too much of what I said there.

This is the President's eighth APEC meeting.ÿ He's attended every such
meeting since he's been in office.ÿ A few critical background facts:ÿ One,
the APEC economies account for 55 percent of world GDP, nearly half of
world trade, and comprise together 41 percent of the world's population.ÿ
In terms of the importance of the APEC region to the United States, U.S.
goods trade with APEC economies grew from $1.2 trillion in 2001 to nearly
$2 trillion in 2007.ÿ So U.S. trade with APEC constitutes nearly two-thirds
of U.S. goods trade.

In terms of our priorities for this APEC Summit, the President will be
seeking to build on the results of the very successful summit that was held
in Washington, concerning financial markets and the global economy.ÿ As you
may recall, the Washington declaration issued after that summit represented
in our view a remarkable consensus and convergence on the causes of the
present crisis, actions to be taken to address the global slowdown,
principles governing financial market reform and concrete actions, a
rejection of protectionism, and a commitment to free market principles, as
well as an important commitment to helping the most vulnerable in the
global economy.

So at APEC, we hope the leaders will endorse and support the declaration
adopted at the summit; will subscribe to those common principles for
reform; will, likewise, commit to free market principles; and, importantly,
we hope that the APEC leaders will also agree not to raise new trade and
investment barriers and so exacerbate the economic slowdown.ÿ We are also
hoping that the APEC leaders will signal their strong support for the
completion of the modalities agreement for Doha and will help spur the way,
lead the way for the conclusion of a Doha Round that actually creates new
trade flows in agriculture, industrial goods, and services.

One of the second key priorities will be to advance the cause of regional
economic integration.ÿ In furtherance of APEC integration, APEC has
completed 14 so-called model measures, or chapters, model chapters, of a
potential FTA.ÿ These model measures, or chapters, if adopted and
incorporated into regional FTAs, would help raise the standards of the
agreements negotiated in the APEC region and, we hope, lead to an eventual
free trade area of the Asia Pacific.

As you may know, the United States decided in September of this year to
join in the free trade negotiations then underway among Singapore, Chile,
New Zealand, and Brunei -- this so-called trans-Pacific economic
partnership we have now joined.ÿ Yesterday in Lima, Australia and Peru
announced their intention to join these free trade negotiations.ÿ Vietnam
has also expressed interest in eventually participating.ÿ This agreement --
this trans-Pacific free trade agreement among such parties would truly be a
high standard agreement.ÿ

As you know, there's been a lot of regional agreements underway that have
not included the United States -- to the detriment of U.S. exporters, U.S.
investors, and U.S. service suppliers, as well as our agricultural
industries.ÿ We believe that our participation in this agreement will
certainly serve as one channel for achieving the long-range goal of the
free trade area of the Asia Pacific.ÿ We are hopeful that other APEC
nations will eventually join in.ÿ And certainly from a U.S. perspective, it
ensures that our companies are on more of a level playing field and that
the United States thus helps foster a so-called regional economic
architecture that is not Asia-only or Asia-first, but that is truly
trans-Pacific.

I mentioned at the earlier briefing that we will be looking at ways that we
can enhance the competitiveness of the APEC region -- I'll talk about two.ÿ
One is bridging the digital divide and ensuring universal broadband access
throughout the APEC region by 2015.ÿ The other is by carrying forward a
program of regulatory reform in the area of telecommunications so that we
keep those markets open and we liberalize the possibilities for investment
in telecom infrastructure.

As you may know, telecom is one of those drivers of economies -- you lower
telecom costs, it has a multiplier effect throughout the economy.ÿ So
telecom energy capital costs -- you address those costs, you lower those
costs, you really spur economic growth.

Next, we expect there to be some discussion -- actually a fair amount of
discussion on food security.ÿ We expect there to be a discussion of ways of
enhancing productivity, improving infrastructure for the storage,
transportation, and distribution of food, as well as the development of
science-based regulations so that the region can benefit from the
advantages offered by biotechnology.

We also expect there to be a pretty thorough discussion concerning
corruption, and the importance of combating corruption.ÿ Corruption
represents a very significant threat to economic development; corruption
has a corrosive effect on public trust, on government, and the rule of
law.ÿ Corruption is simply incompatible with the rule of law and, as I
mentioned in connection with telecom, corruption is one of those issues
that also has a multiplier effect.ÿ If you address corruption, you have a
positive impact on economic development, promoting just and stable
democracies, and promoting accountable governments.
So if steps can be taken comprehensively to address corruption, you affect
a wide variety of ills that affect a number of societies.
Finally, we expect there to be some discussion on energy security and
climate change.ÿ We expect a discussion of those interlinked challenges.ÿ
We think -- we expect that the leaders will be discussing the benefits and
contribution of the major economies meetings and that process, as well as
their desire to carry forward the work first at Poznan and then later in
Copenhagen under the U.N. Framework Convention.

I think there will also be a discussion of the need for enhancing the
deployment of technologies, particularly to the developing world, so that
they are able to take a lower carbon path to economic development than was
available to the developed countries when they were industrializing.

And I think I'll stop there.

MS. PERINO:ÿ Do you want to see if there's any questions for you?ÿ That way
we don't have to go back and forth.

Qÿÿÿ You mentioned food safety as an issue.ÿ Is that going to be part of a
declaration at the end?ÿ Is there any precedent for them addressing that in
the past?

MR. PRICE:ÿ I think there will be -- I think the subject of food security,
both the safety aspects, the import safety aspects, but also, importantly,
the aspect of the need to increase productivity, the need to get food to
people who need it, and to build out the infrastructure within the APEC
region to promote agriculture, to promote food security -- I expect that
you will see that in the leaders' declaration.

Qÿÿÿ Quick question about the economic context of this meeting.ÿ You
mentioned the consensus that was reached at the G20 session last weekend.ÿ
But since then there's been a series of other more negative steps -- the
debate over the automakers, that has not reached consensus on the Hill; new
unemployment claim numbers; problems with the stock market dropping.ÿ Is it
the President's view heading into this meeting that the economy is getting
better or getting worse right now?

Qÿÿÿ Dan, can you summarize the question, I couldn't hear a word of it.

Qÿÿÿ Is the economy getting better or getting worse heading into this
meeting?

Qÿÿÿ Thank you.

MR. PRICE:ÿ I understood the question to say there have been developments
since the summit in Washington; will those be discussed at this meeting
among leaders?ÿ Surely they will.ÿ It's not only the United States, it's
globally we're experiencing serious economic challenges.ÿ It is not just
the financial sector.ÿ We are experiencing more broadly challenges in our
country, as are many countries around the world.ÿ I'm sure that will be a
topic of discussion among the leaders.
Qÿÿÿ Can you speak to whether the President believes the economy is getting
better or worse right now?

MS. PERINO:ÿ I will handle that one later.

Qÿÿÿ Do you know what garment they're going to be wearing on this summit?ÿ
Don't they always have some kind of special garment -- jackets, hats,
boots?ÿ (Laughter.)

MR. PRICE:ÿ I don't know.

All right, I'll turn it over to Dan Fisk, Senior Director at the National
Security Council for Western Hemisphere Affairs, who will talk a little bit
about U.S. relations in the region over the last eight years.

MR. FISK:ÿ Thanks.ÿ Good morning.ÿ My name is Dan Fisk.ÿ I'm the Senior
Director for Western Hemisphere Affairs on the National Security Council.ÿ
It's good to see a number of familiar faces on this trip again.

First, let me just start with a basic.ÿ In addition to the United States,
there are four other Western Hemisphere countries that participate in
APEC:ÿ Chile, Peru, Mexico and Canada.ÿ Also the President on this trip
specifically will have a bilateral meeting with Prime Minister Harper of
Canada.ÿ And then he will also see President Garcia of Peru, who is the
host.ÿ Of course we expect during the APEC meetings the leaders will have a
great amount of time together, that President Bush will see his colleagues
from the other Western Hemisphere countries, as well.

This trip builds on, and I think in a lot of ways is a good capstone, for
what's been the President's long interest in the Western Hemisphere, and
his very active engagement with leaders in the hemisphere, and, as I said,
his interest in the region.ÿ To put this trip in some broader hemispheric
perspective, the President will have -- this is his 14th trip to the
Western Hemisphere, to a Western Hemisphere country.ÿ It is his ninth trip
to Latin America; his second trip to Peru.ÿ He traveled to Peru in March of
2002.ÿ So there is, again, a long history with the President of trying to
take every opportunity to travel in the region.

In terms of his interaction, to give you a little bit -- again, a little
bit more idea of how engaged the President has been, again, I mentioned
that he will have some specific bilaterals.ÿ Overall during his presidency,
he's had more than 350 either meetings or phone calls during his
presidency, with Western Hemisphere leaders.ÿ Again, this trip we think
will build on that.ÿ We're looking forward, and the President is looking
forward to his interaction with his Western Hemisphere colleagues.

Of course, this is also a chance once again for him to talk about some of
the policies he's pursued in the area of social justice, which has been one
of his themes throughout the eight years; what we've done as a country to
help Latin American nations, in particular, benefit from democratic
government and from expanded economic opportunities.ÿ During his
administration,ÿ we have put forward about $300 million for education
initiatives.ÿ Of course, we have the Centers of Excellence and Teacher
Training, which have trained about 20,000 teachers up to this point.ÿ There
is a center in Peru, as one of the focal points for that program.ÿ

In terms of health, we've spent over $1.5 billion in assistance in Latin
America to help countries with their health care.ÿ In 2007, the United
States partnered with Central American countries to open a health care
training facility, which is based in Panama.ÿ I understand, just as a
footnote, that Mrs. Bush, who was in Panama yesterday and today, was going
to visit that facility.ÿ So we also have the area -- of course, the area of
health.ÿ

Of course, the other one that's been of particular interest to the
President is economic development and creating more job opportunities for
individuals throughout the hemisphere.ÿ Of course, one of the keystones in
this for this administration has been the Millennium Challenge Account.ÿ We
have six -- there are six Millennium Challenge programs in the hemisphere.ÿ
They total more than $900 million in assistance.ÿ We have the 10 free trade
agreements that this administration has also put in place.ÿ We have another
initiative that the Treasury Department has spearheaded to help provide
microcredits to entrepreneurs.ÿ That's about $250 million.ÿ And then
through the Overseas Private Investment Corporation, we have put more -- or
OPIC specifically has put more than a billion dollars in financing
guarantees to help workers in Latin America achieve affordable housing.

So again, in terms of the President's record in the hemisphere, this is,
again, I think, a good opportunity to remind people of that.

Let me just highlight some very specific areas where I do think that this
administration has not only improved the relationship with the hemisphere,
but has laid a very solid foundation that the new President can build upon.

In terms of the relation with Brazil, that is a case in which the two
Presidents -- President Lula and President Bush -- from the very early
moments, both administrations laid a strong personal relationship from
that.ÿ We have developed a number of areas of cooperation.ÿ We have a
biofuels agreement with the Brazilians to cooperate in the development --
the research and development of biofuels.ÿ

Just this week it was announced that we would expand that cooperation
beyond the hemisphere to now include efforts to try to help countries in
Africa develop alternative fuels.ÿ We also have with Brazil an initiative
for -- to address malaria in Africa.ÿ We have a program in Sno Tom‚, and
then we also are working with the Brazilians and Africa in issues of
governance, and we have had a program in Guinea-Bissau, in terms of helping
legislators in that country become better prepared to handle their
responsibilities.ÿ Again, these are all initiatives we have with Brazil.

Finally, one of our initiatives has been the creation of the U.S.-Brazil
CEO Dialogue, CEO Forum, to get our private sectors talking more and more
about how we can expand and deepen the economic relationship between what
are the two largest economies in the Western Hemisphere -- Brazil being the
largest economy in South America.

Another area where we've had -- expanded the relationship, of course, is
Mexico.ÿ This President has taken a very strong interest in Mexico.ÿ Being
a former government of Texas, he has a certain sensitivity and awareness of
our history with them and a deep appreciation for Mexican culture and
Mexican people.ÿ In that, of course, we have not only continued to pursue
NAFTA implementation -- we think NAFTA is working, we think it is bringing
benefits to all the people of North America.ÿ But we also, within the last
year and a half, have pursued and begun to put in place an unprecedented
level of cooperation in terms of addressing the threats to both societies
of drug cartels and organized crime.

We are also working with the Mexicans in the security arena, in terms of
how we help the Central Americans also address what they are dealing with
in terms of criminal gangs and drug cartels, as well.ÿ And then, of course,
also with Mexico and Canada, we have pursued initiatives on a North
American basis to expand kind of what we can do as three countries together
to enhance prosperity and enhance security of our citizens.ÿ And again,
this North American construct, while we had NAFTA, the President, the Prime
Minister of Canada, and the President of Mexico have been able to put that
together in terms of the North American Leaders Summit process, in which
the three leaders have met four times.ÿ And again, we think that's a very
solid foundation that we will be able to -- that we will hand off to the
next administration.

Of course, another area that I'll raise is Colombia.ÿ The United States has
sustained its support for Colombia.ÿ We have a pending free trade
agreement.ÿ We would like to see Congress pass that.ÿ We think it's in our
interest to pass that; we think it's in Colombia's interest.ÿ It would be a
strong signal of support to a friend, to a country that has done
fundamentally the right things in terms of governance, in terms of economic
development, and in terms of making sure that the benefits of democracy are
delivered to the Colombian people.ÿ

Colombia is a dramatically different place at this point in time, eight
years after what President Bush and his administration has been able to
help President Uribe and his predecessors achieve, and we think that
success needs to be cemented.ÿ But we do think that there is no doubt that
the United States' willingness to sustain our support for a country taking
the right actions has been critical to the success that we have seen in
Colombia.

We also have taken other steps to deepen our economic relationship with
Uruguay, a country that doesn't get a lot of attention.ÿ But nonetheless,
we have taken an effort through USTR to see what can be done there in terms
of expanding an economic relationship.ÿ And we've also done some outreach
with the Caribbean, with CARICOM, to try to improve relations there, and
also look at how we can help that region become more economically
prosperous.

Again, I put all that into context.ÿ That's the kind of -- that is the
background and the backdrop to this trip, which, again, I think is an
important statement about this President's record and interest in the
hemisphere.

So I will -- I'll stop there.ÿ And, Dana, if you want me to take a few
questions --

MS. PERINO:ÿ If there's questions for you, then we'll let you answer
questions, and then I'll go to Dennis.

Qÿÿÿ What, in your assessment, is the realistic likelihood that the
Colombia free trade agreement is going to pass?

MR. FISK:ÿ The question, just so everyone heard, was, what is our realistic
assessment of the likelihood of the Colombia trade agreement being approved
by Congress.ÿ Let me say this:ÿ I'm not going to get into tea leaf reading
with the Congress of the United States.ÿ I'll refer you to my -- to Dana or
Congressional Affairs colleagues on speculating on kind of how Congress may
or may not act.ÿ The point I would reiterate is that we think that the
approval of the Colombia free trade agreement is critical to Colombia
continuing the success it's had in putting in place a democratic security
policy.ÿ Again, we think it's the right thing to do for American workers,
for the American economy; exports are working for the United States.ÿ
Right now you have a situation in which the European Union is looking at
pursuing a free trade agreement with Colombia.ÿ I don't know why Americans
want European goods going in and American goods paying a 35 percent-plus
tariff.ÿ I mean, it just seems to me that's a logical question people ought
to be asking their elected representatives, which is, what about us?ÿ But
it's also, from the Colombian perspective, they understand they need that
to consolidate what they've done.

So we're going to continue to make the case.ÿ Hopefully the Congress --

Qÿÿÿ Never say die, huh?

MR. FISK:ÿ Never say die, that's right.

Qÿÿÿ Leading the witness.ÿ (Laughter.)ÿ

Qÿÿÿ Dan, over the past four weeks or so, Colombia has purged several
members of their military over ties to extrajudicial killings.ÿ If you
listen to some of the Democrats on the Hill, they've cited specifically
those kinds of killings as an objection.ÿ Are you asking the -- are you
drawing this stuff to the Congress's attention?ÿ Are you asking the
Congress to take another look, especially the members who have those kinds
of concerns, to give Colombia another look, given the events of even just
the last few weeks?

MR. FISK:ÿ For those who know Colombia's history, you know that if you look
back to less than 10 years ago, we were looking at a country that was --
the international community was prepared to declare was a failed state; it
was unsafe for the citizens of Bogata to walk the streets; Colombians were
more interested in making sure they had visas to get out of the country
rather than figuring out what they could do to build their country and make
sure that it was a successful place.ÿ Tragically for Colombia, abuses have
still continued.ÿ But to the benefit of the Colombian people and to the --
with our compliments to President Uribe, Colombians have taken every step
to make sure that when a wrong is brought to attention, that steps are
taken to bring those individuals to justice.

So what we have seen is a country that is trying to fight impunity, and
when in these recent incidents they've been brought to light, you've had
President Uribe take decisive leadership.ÿ He's not been afraid to dismiss
the individuals who are alleged to have committed these acts, submit them
and their cases to the justice system to be dealt with.ÿ He's given, in my
view, no quarter when there has been serious -- or allegations of human
rights abuses.ÿ He does want the rule of law to prevail in that country.ÿ

We have tried to make that case to the Congress.ÿ You can make it, in terms
of statistics.ÿ You can make it in terms of kind of the human story.ÿ And I
also know the Colombians have tried to make that case, as well.ÿ Just
recently they -- "they" the Colombians -- provided an extensive analysis to
members of the House leadership.ÿ Again, this was something from the
Colombians about kind of what they have done.ÿ

So while, again, these incidents happen, they're tragic; nonetheless, when
they do happen, the Colombian government takes a very strong action and one
that we applaud.ÿ They do try to make sure that justice is done and that
people are held accountable.ÿ And again, that is a dramatically different
place -- Colombia is in a dramatically different place today than it was 10
years ago.ÿ And we think that this success has to continue.ÿ We think it's
actually in our interest that it continue, let alone in Colombia's
interest.ÿ So that's the best answer I have for you.

MS. PERINO:ÿ Let's get a quick word from Dennis.

MR. WILDER:ÿ Good morning.ÿ I'm Dennis Wilder, Senior Director for East
Asia at the National Security Council.ÿ

Let me start by saying that I think when historians look back on the last
eight years, one of the key changes in the world, transformations in the
world, will be the rise of East Asia and the emergence of China.ÿ I think
what people will also see is that President Bush was very aware of that
trend and took advantage of that trend to build American relations in this
region.

One of the things the Secretary of State has talked about is that we are in
a remarkable place today with our relationships with East Asia.ÿ We have
strong relations now with India, China, Japan, Korea, Indonesia, Australia,
New Zealand -- all of the major powers of East Asia we now have strong and
productive relationships with.ÿ Never before in American history have we
been able to make that statement as strongly as we can today.

If you look at what the President has done in East Asia, there's some key
things that I would point out to you.ÿ First of all, the President is the
designer of the six-party talks.ÿ The six-party talks were a real
breakthrough in regional security cooperation -- the fact that six parties
in Northeast Asia working together for the denuclearization of the Korean
Peninsula had never been tried before, and was really something that the
President personally pulled the leaders together.ÿ He got China to
recognize its responsibilities in this matter.ÿ He got the parties to
gather together and to move forward.

Obviously the work is not completed, but I think we have set both the
institutional framework in place and the right principles to move forward
on denuclearization.ÿ And so we're optimistic that that progress can
continue to be made in that area.

In terms of other parts of East Asia and what we've been able to
accomplish, I think there is a remarkable story on counterterrorism in East
Asia, when, after 9/11, there were huge concerns about the situation in
Indonesia and the Philippines.ÿ In Indonesia we had some very tragic
high-profile bombings.ÿ Since that time, working together cooperatively,
the United States, with Indonesia and other Asian partners, we have
eliminated much of the terrorist threat in Indonesia.ÿ The terrorist
organizations there are no longer the powers they once were.

Similarly in the Philippines, very close cooperation with the Philippine
government to reduce the terrorism threat in the Philippines to a point now
that it is no longer endangering that society in the way it used to.

If you look at our alliances in East Asia, regrettably, at the end of at
Cold War there was a certain atrophy in alliance relationships in the
region.ÿ At the beginning of this administration, the President made a
priority to rebuild those alliances with Korea, with Japan, with Australia,
and build our friendships with others in the region.ÿ The creation, for
example, with Singapore of a strategic framework agreement allowing
American forces a logistic center to move between the United States and the
Middle East was very important and has been very useful to us.

We have, of course, transformed our military presence in Japan and Korea.ÿ
We're in the midst of that transformation, but it's a transformation that
removed some of the irritations in the relationships because American
troops were in central cities.ÿ We're now moving them away from cities;
we're now moving them to areas where they can train more easily, and we're
doing a lot toÿ give back lands that no longer are necessary for American
troops in places like Korea -- important things to the Korean people.
Missile defense:ÿ When we began this administration, the United States was
vulnerable to a missile attack from North Korea.ÿ Today, we have a viable
and effective missile defense capability to defend ourselves against a
rogue attempt at a missile launch.ÿ Why?ÿ Well, because of the investment
in a missile defense system here in the United States, but also because of
missile defense cooperation with the Japanese and others.ÿ We now have the
necessary radars in Japan, for example, to detect a launch, to help us
track a launch, and then to defeat that launch.ÿ So that's an important
change.ÿ

In addition to that, in the defense arena, we now base in Japan, for the
first time in American history, a nuclear carrier battle group.ÿ That is a
very profound change. ÿIt was a difficult change to get effected because of
some feelings in Japan, but working very closely with Prime Minister
Koizumi and his successors, we were able to change from having an old
carrier battle group, a diesel carrier, the last one we had, the Kitty
Hawk, and now we have put modern military capability in Japan.

Let me highlight just a couple more things in the security area:ÿ Taiwan.ÿ
At this APEC you will see a former vice president of Taiwan representing
Taiwan at this Asian economies meeting.ÿ Eight years ago, that would have
been unthinkable.ÿ Eight years ago, the United States and China were at
odds over Taiwan and how to deal with the Taiwan issue.ÿ There were great
strains caused by this issue in the U.S.-China relationship.ÿ

Working very closely with President Hu, working with the officials on
Taiwan, you have seen in the last few months a huge reduction in the
tensions along the Taiwan Strait.ÿ You have seen a senior Chinese official
go to Taiwan earlier this month and sign new agreements on links between
Taiwan and the mainland.ÿ And at this conference, you will see a former
vice president of Taiwan sit down at international meetings with world
leaders.ÿ This is a real opening and a real change and a real reduction in
tensions.

The President will have an opportunity to meet with former Vice President
Lien Chan during the sessions of this group.ÿ And he's interested to hear
from both the Chinese side and the Taiwan side not only about what's been
accomplished so far, but what they're going to accomplish in the future in
terms of adding to peace and stability on the Taiwan Strait.

So I think there are many accomplishments in East Asia.ÿ I think that the
President has created excellent relationships across the region with
regional leaders.ÿ They've appreciated his foresight.ÿ They certainly have
very much appreciated his commitment to free trade.ÿ They have benefitted
greatly from free trade, but we have also benefitted greatly from free
trade.

Remember that the economists say that 50 percent of the growth in the
American economy in the last few years has been because of exports, and
those exports in large measure have gone to East Asia.ÿ We are inextricably
linked with this region of the world, and the President wants to make sure
that this region understands that America is its partner and will continue
to be its partner over the long term.

Qÿÿÿ The President is meeting with the President of China, the Prime
Minister of Japan, the President of South Korea, a lot of six-party talk
activity, it would seem.ÿ Is there any particular goal you have in mind for
the six-party process here at this APEC Summit?

MR. WILDER:ÿ Absolutely.ÿ Our primary goal is to get back to the
negotiating table in Beijing.ÿ We need to put in place, in the six-party
context, the verification principles that we have worked out to a certain
extent bilaterally with the North Koreans.ÿ We need that to be memorialized
and codified at a six-party meeting.ÿ The Chinese obviously host the
six-party, so they need to call that meeting.ÿ So we are very much hoping
that by the time we leave APEC, we will have that meeting -- the timing of
that meeting in place.ÿ And then hopefully that meeting can really get us
to the end of what we call the second phase of the six-party process, and
begin to start thinking about the third phase of the six-party process.

QÿÿÿWhat's the goal for the timing of the meeting?ÿ Do you have a date in
mind, or rough date?

MR. WILDER:ÿ I think the goal is early December, would be the best timing.

Qÿÿÿ Very soon, then.

MR. WILDER:ÿ Right.

Qÿÿÿ What is the ultimate goal, then, on changing North Korea's behavior
before January 20th?ÿ In other words, what's the most that you feel that
you can accomplish in the time that you have left?

MR. WILDER:ÿ Well, I'm reluctant to predict what exactly we're going to get
accomplished because we have to sit down in the six-party talks and get
everybody's views on this.ÿ This is not just an American process; it's a
six-party process.

However, what I hope we leave in place for the next administration, and
what I think we can, is a very viable six-party process, a commitment on
all parts that this is the way to negotiate the ultimate denuclearization
of the North Korean Peninsula, and the normalization of relations in
Northeast Asia.ÿ After all, the real long-term goal is not only
denuclearization, which is very important, but is peace and security in
Northeast Asia.ÿ And ultimately, what we would like to see is the Koreanÿ
-- the North Koreans becoming a productive member of the international
community and the community of nations in Northeast Asia.

So the long-term goal is clear -- the long-term goals, I should say.ÿ And
what we need to do is leave a process in place that the next administration
can pick up and work with.ÿ And I think we will do that.ÿ I'm optimistic.

Qÿÿÿ Do you feel that you don't have that right now?

MR. WILDER:ÿ Oh, no, I think we have the process in place.

Qÿÿÿ -- plan for the process?

MR. WILDER:ÿ I think we very much do.ÿ I think, though, that the North
needs to come to the table and demonstrate to the other parties that it is
committed to that six-party process, and that it wants to move forward with
the denuclearization process, in exchange for those things we are promising
to do to help the North rebuild and again become, if you will, a
responsible player in the international community.

Qÿÿÿ Dennis, is there any new insight into the condition of Kim Jong-il?ÿ

MR. WILDER:ÿ You know, there really isn't.ÿ North Korea is a very secretive
place.ÿ We see the same photographs that you see.ÿ We really can't make
much of them.ÿ We don't know how to tell exactly what his condition is.ÿ I
think we continue to believe that it seems credible that he had some sort
of health crisis, but as to his recovery from that health crisis, I'm just
not in a position to speculate on that.

Qÿÿÿ Dennis, you talked broadly about the President's accomplishments in
the region and how history will show that he paid attention to this
region.ÿ How would he like to be remembered in this region?

MR. WILDER:ÿ I think that, first of all, he would say that he worked hard
to understand this region, worked hard to build really strong relationships
with leaders in this region.ÿ I've had the privilege to sit in on his
meetings with those leaders.ÿ These are genuine relationships.ÿ

President Hu Jintao of China really has a great deal of confidence and
faith in the President, in part because the President was very honest and
candid with him on where we were on Taiwan, but also kept his promises in
relation to Taiwan that we would not support independence in Taiwan, that
we would not support provocative steps on Taiwan, but also, that we weren't
going to let Beijing bully Taiwan.ÿ And I think the fact that the President
was able to walk that line with the Chinese and maintain a very productive
relationship shows the skills, really the diplomatic skills that the
President brought to that relationship.ÿ

We're very proud of the strategic economic dialogue between us and the
Chinese.ÿ We very much hope the new administration will continue that,
because the President believes, and has always believed, that engagement
and bringing China in as a responsible stakeholder into the international
community was key to getting China right.ÿ

I think that this last G20, and you've seen a lot of people comment on
this, was a real sign of that, that there is a shift of gravity in world
economic relations from West to East.ÿ And the fact that the international
financial conference included the nations of East Asia -- India, China,
South Korea, Japan, others -- shows that -- the importance now to us of
East Asia, importance to the global economies.ÿ And the President I think
understood that very early on, and built those relationships and spent time
on those relationships.ÿ

You'll recall the close relationship with Koizumi, ending with a visit to
Graceland, one of the great road trips of all time for an American
President.ÿ His recent meeting with President Lee at Camp David, at which
they shared their faith and their deep feelings about how their Christian
faith motivates them and their leadership, I think was one of those
moments.ÿ So I think the President has really worked hard to build with
Yudhoyono of Indonesia, he has built a very close personal relationship.ÿ

So all across the region I think these leaders respect his leadership,
respect his strength and, again, respect what he's done to build free
markets and opportunities for both the American people and East Asians to
prosper.ÿ And there's no question that East Asians have prospered very well
because of the policies this administration took.

MS. PERINO:ÿ Does anyone have one for me?

Qÿÿÿ Can I ask two?

MS. PERINO:ÿ Okay, go ahead, Ben.

Qÿÿÿ Is it still likely that President Bush will meet with the Russian
President?ÿ Is that just a matter of logistics?

MS. PERINO:ÿ I'll check for you.ÿ I think that if they get a chance to talk
that they want to, and the President wants to, so we'll keep you updated.ÿ
I don't have it specifically on the schedule.

Qÿÿÿ Sorry, what was the question?
ÿÿÿÿÿÿÿÿÿ
MS. PERINO:ÿ Whether he would meet with Medvedev here.ÿ And let me just
confirm for you because I didn't hear the latest.ÿ I know that the -- if
there's an opportunity to, the President wants to.

Qÿÿÿ Also, can I take another run at my question of like a half hour ago --
the success that's been remarked upon about the G20 summit.ÿ Since then,
there have also been some downturns in the economy -- the auto deal didn't
come together, the stock market has dropped.ÿ I'm just trying to get a
sense from the White House perspective, heading into this meeting, is the
economy on -- headed in the right direction?ÿ Is the economy going the
right direction heading into the meeting?

MS. PERINO:ÿ Well, there's no doubt the economy is very tough, and it's
very tough all over the world.ÿ And we didn't promise immediate results.ÿ
What we did is establish what Dan Price just talked about, which is
establishing what the causes were and then working on reforms for the
future, including -- especially transparency and oversight.ÿ Remember, the
next meeting is set for I think in April of '09.ÿ

So there's lots of things that need to do -- need to be done between now
and then to get that worked out, and we're working hand-in-glove with the
President-elect's team to make sure that they have what they need going
forward so that when we hand the baton to them, they can already be running
and working to implement what we have been working with these other leaders
on.

Our economy is obviously very tough in the United States.ÿ Just this
morning, the President signed an extension of unemployment insurance
benefits because the economy has continued to worsen since June when we
first talked about an unemployment extension when we were at 5.5 percent
unemployment; yesterday's numbers had us at 6.5 percent unemployment, and
the job market is still very tight.ÿ The credit markets seem to get better,
and then they contract a little bit and tighten up again.ÿ And we are
looking at all good ideas and considering what to do.

When it comes to the automakers, however, what I would say is that it is
appalling that Congress decided to leave town without addressing a problem
that they themselves said needed to be addressed.ÿ What's interesting is
that they came around to our point of view, that we have established a
couple of weeks ago, that we would only be willing to put money to help
these companies out -- into companies that could prove that they had a
long-term plan for viability.ÿ

Low and behold, all of a sudden, yesterday the Democrats say that, okay,
they too agree that firms should have to prove viability.ÿ But they must
not think it's such an urgent situation if they want to kick the can down
the road for another two weeks.ÿ What I think is unfortunate is that
there's this mindless opposition to anything that the President or
Republicans would support.ÿ

But not only that, they even opposed a bipartisan solution that was brought
forward yesterday that took a lot of our good ideas and added some of
theirs in order to use a program that had already been authorized and
appropriated for the car makers.ÿ That they decided not to do that is --
can only lead the American people to think that, one, they don't think the
automakers need emergency help; two, they're willing to kick the can down
the road and just to see what happens; or three, they wanted to punt
because they just have an inability to get anything done.

So we will continue to work with Congress, if they are going to come back
December 8th -- we'll see.ÿ It's also just shocking to us that Congress
would talk about the need to create jobs and to have pro-growth policies,
and yet when you have the Colombia free trade agreement sitting right there
at their desk, where they could have a simple up or down vote on it and
actually help jumpstart jobs in America, they punt on that, too.ÿ

So if we have to work around Congress to establish policies that we can do
on our own, we will to some extent, but that's not how our system of
government is set up.ÿ We need the legislative branch to be doing their
part, as well.

Qÿÿÿ What do you mean, "work around Congress?"

MS. PERINO:ÿ Well, some of the things that we were able to do at the --
like, for example, what the Fed did, and some of the innovative proposals
that they came up with to try to loosen credit markets; things that were
already under their authority through the executive branch that they didn't
need additional legislative approval on.

Qÿÿÿ Just two questions.ÿ Can you just share the current thinking on a
stimulus, given yesterday's events in the stock market and sort of renewed
calls for some kind of stimulus?ÿ What's your position today?

MS. PERINO:ÿ Obviously, yesterday, and the day before, and I think even a
day before that, the stock market took quite a beating.ÿ I'm not able to
tell you why, because I'm not a soothsayer and it's hard to tell with the
markets.ÿ In regards to a stimulus package, I'll just have to get back in
touch with you because, as I said, we're always looking at what needs to be
done or what could be done next or what more needs to be done, should there
or should there not be a stimulus.ÿ

What we had seen put forward by Congress so far were programs that would
not have a short-term effect on the economy, or an immediate effect, a
stimulative effect on the economy.ÿ Given that, we didn't think it was
prudent just to put taxpayer dollars toward something that would have maybe
a long-term impact.ÿ What we're looking for is something more immediate,
and so far we haven't seen that from them.ÿ But, again, we're open to
ideas.

Qÿÿÿ And then, finally, looking ahead to Monday, Mr. Olmert is coming.ÿ
You've said that the prospect for a peace agreement is unlikely.ÿ So can
you just share with us, what do you think the conversation between the two
leaders will be like?ÿ Both are on their way to private life.

MS. PERINO:ÿ Well, obviously these two leaders have been through a lot
together; our two countries have been through a lot together.ÿ I think one
of the things that they will talk about is how far we've come since 2001.ÿ
When the President first arrived, there was an intifada and hundreds of
Israelis and Palestinians were dying needlessly, but at the hands of
horrible violence.ÿ

Over the years, we had a change in leadership and we had a change of
attitude.ÿ And the President of the United States was the first to
articulate a two-state solution and to support a two-state solution.ÿ And
now almost everywhere around the world, because of the work we have done,
culminating in the Annapolis Conference, you have the world supporting a
Palestinian state.ÿ

How they get to a Palestinian state could end up taking a little while
longer, but you have negotiators and the Israelis and the Palestinians who
recognize that there is a path forward for them to do that.ÿ So I think
what the President and Olmert will want to do is to talk about how can they
continue to help this process over the next two months.ÿ And I'm sure that
Prime Minister Olmert will want to talk about old times, but also what the
future holds.ÿ And they obviously are two leaders who love their countries
very much and have been victims of terrorism and share a lot of solidarity
in trying to improve the world and bring peace to the Middle East.ÿ

So I think that's what the conversation will probably be like.ÿ We're
almost a year -- to the year anniversary of the Annapolis Conference.ÿ What
Secretary Rice would tell you is that they have made great strides.ÿ They
haven't quite reached the goal yet, but they're getting there.

Qÿÿÿ So a little bit of a goodbye meeting, it sounds like.

MS. PERINO:ÿ I think that -- you've seen several leaders that have come by
to have one last opportunity to talk to the President of the United
States.ÿ At the same time, since the election, as I've told you before,
there have been a lot of leaders who have called the President-elect and
his team to establish relations with them as well.ÿ And we think that's
healthy and we try to help facilitate it.ÿ

Qÿÿÿ Dana, on the Iraqi-U.S. -- this I guess what you guys are calling
alternative -- the SOFA and the long-term strategic pact, do you plan to
make available publicly an English-language version of the SOFA so that
Americans can take a look at it and make up their minds?

MS. PERINO:ÿ Yes.ÿ As soon as we possibly can, when we're -- agreement is
reached, we'll be able to do that.ÿ You bet.

Qÿÿÿ When agreement is reached?ÿ Do you mean when it's ratified?

MS. PERINO:ÿ I don't know exactly the timing of it.ÿ Obviously, we've
provided full briefings to appropriate members of Congress.ÿ I think over
200 members of Congress saw it.ÿ Secretaries Rice and Gates, amongst others
-- I think General Lute -- were up on Capitol Hill to provide that
information to the citizens, representatives in Congress.ÿ And then as soon
as we are able to, we'll provide the English language, sure.

Qÿÿÿ But you're suggesting that you're going to provide it after --

MS. PERINO:ÿ I actually can't tell you when it will be.ÿ I just don't know.

Qÿÿÿ Dana, are you saying Congress should have stayed in session and acted
to authorize the 136 loans right now, and not waited a couple of weeks?

MS. PERINO:ÿ Well, it seems to me that it's sort of senseless.ÿ You had a
bipartisan path forward to help the automakers, as long as they were
willing to show viability through the 136 program, that would not relax
environmental standards.ÿ And nothing would bar the Congress from putting
more money towards helping companies retool their plants if they wanted to
in the future.

So I would -- I just think that it was mindless opposition to anything that
we would propose, and they cut off their nose to spite their face.ÿ So now
we'll have to wait and see if they even come back on December 8th.ÿ But one
thing that is very curious is how in the world are 535 members of Congress
going to determine viability of a company?ÿ It's mind-boggling.ÿ They can't
even get together to pass a Mother's Day resolution.ÿ So we are a little
bit perplexed as to what they plan to do when they get back on the 8th and
how they plan to do it.

We agree that the viability portion of the language is absolutely
critical.ÿ But we want these automakers to succeed.ÿ We don't want to see
the huge numbers of unemployment that would result from a possible
insolvency.ÿ And these companies have to be willing to make hard decisions
to change for the long run.

Qÿÿÿ And those who are engaged in mindless opposition would be Reid,
Pelosi, those people?ÿ

MS. PERINO:ÿ Well, I think it's obvious.ÿ I don't have to name them -- they
know who they are; you know who they are.ÿ They're the people who are
opposing our plan, and the people who decided to go home without actually
getting anything done.ÿ I mean, this is like do-nothing Congress part two,
same song as they sang last time.ÿ And as I said, we will do what we can to
try to put forward innovative policies like we had with this 136 program.ÿ
It had a bipartisan path to succeed.ÿ And they wouldn't even allow for a
vote.ÿ What kind of democracy is that?

So we're a little bit perplexed.ÿ But we'll see what the companies come up
with, and if they can meet the Democrats' so-called test.ÿ Okay.ÿ One more.

Qÿÿÿ One more on financial markets.ÿ You know, there's been a lot of
concern about credit markets tightening up, seizing up again the last
couple days.ÿ Is there anything that the administration is contemplating
doing today, or in the very near future?

MS. PERINO:ÿ I'd have to refer you to the Treasury Department.ÿ Obviously
we got on the plane at about 7:00 a.m., and so I haven't been able to talk
to them.ÿ But if we get any word from D.C. I'll let you know.ÿ But in the
meantime if you could have your people check with Hank Paulson's office,
that'd be great.

Qÿÿÿ Dana, did the President call Ted Stevens?

MS. PERINO:ÿ I don't know.ÿ I would have to check.ÿ I know that he saw him
at the NCAA championships.ÿ But after the concession, I don't know.ÿ I'll
check.

Qÿÿÿ Dana, can you get back to us on the Russia meeting?

MS. PERINO:ÿ Russia and Stevens.ÿ You bet.

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ ÿÿÿÿÿÿÿÿÿÿÿ END 10:48 A.M. ESTÿ ÿ ÿÿÿÿÿÿ

* PEPFAR now supports lifesaving antiretroviral treatment for more than 1.7
million people worldwide.ÿ And as a result of the Tom Lantos and Henry J.
Hyde United States Global Leadership Against HIV/AIDS, Tuberculosis, and
Malaria Reauthorization Act of 2008, the next phase of PEPFAR will support
prevention of 12 million new infections.

** The President and Mrs. Bush will participate in the Saddleback Church
Civil Forum on Global Health with Rick and Kay Warren.
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