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CNN SUNDAY MORNING

Bush and Putin Discuss Missile Defense

Aired July 22, 2001 - 09:45   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BRIAN NELSON, CNN ANCHOR: President Bush met this afternoon, that is Genoa time, met with the Russian leader, Vladimir Putin, at the end of the G-8 Summit in Genoa, Italy, and we have some video of their meeting now. But we're awaiting a news conference by the two leaders. At least, the tape of a news conference which has already taken place.

The subject matter which we all expected was the discussion over the U.S. missile defense system, that one is planned by the Bush administration and that the Bush administration's desire to reach a strategic framework with Russia now that would replace or get around the problems in the Antiballistic Missile Treaty.

Associated Press is reporting this morning that President Bush and President Putin have agreed to tie U.S. plans for a missile defense shield to talks on reducing nuclear stockpiles, so let's join their news conference, which is on tape.

(BEGIN VIDEOTAPE)

VLADIMIR PUTIN, RUSSIAN PRESIDENT (through translator): Good morning, ladies and gentlemen. We've jut finished a meeting with the president of the United States and discussed the issues on a whole wide range of subjects.

First and foremost, I wanted to say with great satisfaction that our meeting went -- was held in a very frank and open atmosphere and there is no doubt absolutely that I can say and confirm that we've maintained not only but in many ways strengthened the spirit of Ljubljana.

Naturally, we discussed the issues that were raised at the G-8, issues of security, environment, education, security and the issue here led us to discuss the world architecture of the 21st century and the way to improve civilization in the future.

I can frankly tell you that this part we discussed together, just one on one with the president. It seemed to me that his thoughts and his mental reasoning is very deep, very profound. We were both very interested in having a continuation of this dialogue with the American people, with it's leader. Approaches which were stated by the president in the past, without any doubt, are going to be studied by us and I can repeat, once again, will be positively accepted. President Bush and I have analyzed how our recent accords are now being implemented. We've put forth several new steps in terms of setting forth a long term and cooperation, which is not subject to any kind of deal makings but a very good, sound, long lasting attitude. Today in Russia, we have a very positive dynamism and we have stated that as well.

The differences in approaches on a couple of topics is still there. However, what is more important is that we are aimed, both of us are aiming at partnership to look forward, well reasoned, well balanced, carefully weighed approaches and solutions. Naturally, we discussed the issue of strategic stability. There we spent a lot of time. We talked in great detail. We've reached a most important accord agreement on the beginning and the schedule for consultations.

Beyond that, we talked about setting up a working group or series of working groups. As you know, in Moscow here in a few days Condoleezza Rice will come to visit us and we will work out finally the group structure within the overall inter-agency structure of foreign ministry, defense ministry and others.

I have to say that to some extent what was unexpected, both for me and I think for President Bush as well, was the understanding that was reached today between us on the issue that the offensive arms and issue of defensive arms will be discussed as a set. We're talking about the mutual striving toward cutting back significantly offensive arms. We are not really ready at this time to talk about the threshold limits or the numbers themselves, but a joint striving exists and the specialists will get together and they'll make some recommendations. But we are aiming at moving in that direction.

I told the president of the United States about our proposal vis a vis the start of consultations on strategic stability issues as a whole. And I think that in the very near future, I repeat, once again, that our specialists are going to work in this direction. I think they're going to make a lot of progress and be quite successful.

Naturally, we discussed very, very sharp problems in regional issues. We talked about joining our forces in trying to solve some conflicts. We repeat again that the overall dialogue on getting our positions coordinated is the very best approach to U.S./Russian relations.

Bilateral issues were especially stressed; economic cooperation, and I have to say here that we have a common approach towards developing very dynamically in this sphere. We have very good precedents and very good foundations for this.

We are also know that our business societies are also very interested in this. We've discussed a series of contacts in this schedule for upcoming contacts in the economic field. Talked about our next meeting, the nearest one will be the OPEC meeting in Shanghai and then the president very kindly confirmed his invitation to me to come to the United States and we talked about that agenda too.

So, that's all I wanted to say as an opening remark. Thank you very much.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you, Mr. president.

(AUDIO GAP)

... secondly, we did have a very constructive dialogue. It certainly made my impressions of Slovenia, confirmed my impressions of Slovenia, that this was a man with whom I could have an honest dialogue, that we can discuss our opportunities and have frank discussion of our differences, which we did.

I appreciate very much President Putin's willingness to think differently about how to make the world more peaceful. He cares deeply about the citizens of his land. I obviously care deeply about the citizens of my land. We are young leaders who are interested in forging a more peaceful world. And along these lines, as the president said, that we're going to have open and honest dialogue about defensive systems as well as reduction of offensive systems.

The two go hand in hand in order to set up a new strategic framework for peace. And along these lines, as the president mentioned, my national security adviser, Condoleezza Rice will be visiting in Moscow, the purpose of which is to lay out a specific time table of discussions between our defense ministers and our foreign ministers. So, as we can continue progress to find common ground in a -- to make the world more peaceful.

Both of us want to seize the moment and lead and I appreciate this attitude so very much with President Putin. Secondly, we did talk, spent time discussing economic cooperation. There will be a statement put out after the meeting on both, by the way, the strategic framework discussions as well as the economic cooperation along these lines. Secretary Evans and Secretary O'Neill will be in Moscow next week to discuss a wide range of topics.

But one of the things that is clear and evident is that the president understands the need to create a framework for entrepreneurial activity. As I mentioned in my last press conference, I will mention this again, I am impressed by the fact that he has instituted tax reform, a flat tax, and as he pointed out to me, it is one of the lowest tax rates in Europe.

He and I share something in common, we both proudly stand here as tax reformers. And I think the American business leaders who look to Russia will appreciate certainty in the tax code and they certainly will appreciate a lower tax rate than in other places.

But we've got a lot of areas for growth and discussion, ranging from international trade to investment opportunities within the federation. With that, I will be glad to answer, both of us will be glad to answer a few questions from you. Let's make your questions short so that we won't leave my wife waiting at the tarmac in Rome.

QUESTION (through translator): You were saying just a little while ago about how strategic stability and space is being discussed. How do you see the most -- biggest difficulties in this dialogue? What are the principle differences between the two countries, and how do you see overcoming these differences?

And to Vladimir Vladimirovich, your proposal on a conference -- holding a conference in Moscow on the environment, how was -- how were the other G-8 partners receiving your invitation to Moscow?

PUTIN (through translator): Now, as far as the ABM treaty and the issues of offensive arms, I've already said we've come to the conclusion that two of these issues have to be discussed as a set, as one set. This is no doubt whatsoever.

One and the other are very closely tied. Neither one nor the other side should feel somehow threatened or constrained. I feel and continue to feel that -- felt and continue to feel that these most important kinds of issues, we have to maintain a balance, thanks to which...

(END VIDEOTAPE)

NELSON: And you're listening to Russian President Vladimir Putin and President Bush at the end of their bilateral meeting at the end of the G-8 Summit in Genoa, Italy, both of them putting a positive spin on the meeting. And the headline is that both men have agreed to tie a plan for a U.S. missile defense system to a reduction of nuclear stockpiles, but Mr. Putin saying we haven't got the numbers yet.

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