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July 23, 1998

REMARKS BY THE PRESIDENT IN PHOTO OPPORTUNITY WITH CONGRESSIONAL LEADERS

                           THE WHITE HOUSE
                    Office of the Press Secretary
______________________________________________________________
For Immediate Release                             July 23, 1998     
                      REMARKS BY THE PRESIDENT
                        IN PHOTO OPPORTUNITY 
                     WITH CONGRESSIONAL LEADERS
                           The Oval Office
2:45 P.M. EDT
.................
	     Q	  Mr. President, what impact do you see the missile 
test having on your efforts to try and warm relations with Iran?
	     THE PRESIDENT:  Well, we've been following this for some 
time.  And we knew that Iran was attempting to develop this 
capability.  It's just a test.  But if they -- obviously if they were 
to develop an intermediate range missile it could change the regional 
stability dynamics in the Middle East.  And that's why we've worked 
so hard with North Korea and with others to try to get them not to 
transfer missile and missile technology to Iran.
	     If we do continue to have an opening of relations 
because the new President seems more open to it, obviously this is 
one of the things I would raise with him.  We've been very concerned 
about this.  And we believe the that future of the Middle East would 
be better if they'd invest more money, all those countries, in 
something other than military technology.
	     So we're very, very concerned about it, but not 
surprised by it.
	     Q	  (Inaudible).
	     THE PRESIDENT:  One at a time.  Obviously, it is an 
obstacle.  But I don't think it's an argument for closing off all 
avenues of opportunity.  The country is in a dynamic state now.  
There's some dynamism there and there's some reason to believe that 
-- it seems to me that at least making it clear what our position is 
on that, on the Middle East peace process, on terrorism, support of 
terrorism, on all these issues with which we've had problems with 
Iran in the past, and still being glad that there's some movement 
toward greater popular government, more openness in the country 
argues for what we're doing -- a cautious, deliberate approach.
	.............