May 28, 1998
PRESS BRIEFING BY MIKE MCCURRY
THE WHITE HOUSE Office of the Press Secretary _____________________________________________________________________ For Immediate Release May 28, 1998 PRESS BRIEFING BY MIKE MCCURRY The Briefing Room 2:37 P.M. EDT ............. Q Did the detonation of the nuclear devices in Pakistan seal the fate of President Clinton's trip to India and Pakistan in the fall? MR. MCCURRY: Not necessarily. That trip is still under review, and the President has not made a decision with respect to it. There are strong arguments to be made for going to press upon both governments and others in the region the importance we attach to steps now to de-escalate and to lessen tensions in South Asia. But there clearly are some arguments against going, as a statement of our displeasure with both governments for steps, as the President said today, that move in the wrong direction, contrary to the tide of history that most of the world is celebrating. Q What's the assessment now on the part of the U.S. government that both countries will now move to another step of actually arming delivery systems with nuclear weapons? MR. MCCURRY: There are a number of steps that these governments could take that would be threatening to each other and would create greater instabilities in the region. There are also steps they could take that would be very reassuring to the world community at this point. First and foremost among them would be for both to sign the Comprehensive Test Ban Treaty immediately and without condition, to join the discussions in Geneva for a cutoff of fissile material production, and to refrain from any steps, any actions that would suggest deployment or weaponization of ballistic missiles, which would clearly be seen throughout the world as a very destabilizing and very dangerous development. Q Mike, does the President have any reason to believe that Pakistan may do more tests in the next few days? MR. MCCURRY: We will assess that and report on that as we can. The statement by the government of Pakistan was quite clear that they believe that they have matched the tests that have been done by India, but obviously we'll continue to monitor the situation closely. Q Did the President have any reason to believe that from his last conversation with Sharif? MR. MCCURRY: Well, to drop back a bit, he had a conversation that I reported to many of you around midnight last night in which he made the very strong case against testing, that the United States government and the President personally believes -- and believed -- was the correct course for the people of Pakistan to pursue. He made the strong argument of what would accrue to the benefit of the people of Pakistan if its government refrained from testing and noted that the severe consequences that Pakistan will now face as a result of these tests. That argument, obviously, and the arguments of many others in the world did not sway the government of Pakistan, the Prime Minister -- the Prime Minister called the President just before he made his public statement this morning around 8:30 a.m. to note his decision and to express his respect and respectful disagreement for the arguments raised by the President. Q Just for the record, this means that the F-16s that were held up because of the Pressler Amendment, that Pakistan can certainly forget about ever getting those F-16s? MR. MCCURRY: Well, there are a variety of sanctions that will come in place and join those sanctions already in place, through the Symington Amendment, through the Pressler Amendment. There are a number of sanctions that have already -- were already imposed on the government of Pakistan. Those obviously remain in place. The serious consequences that result from the sanctions imposed by the Glenn Amendment, Section 102 of the Export Control Act, now come into place, and they will have a range of effects on our bilateral assistance programs and on the posture we take in international lending institutions. Q So what can the United States now offer to India and Pakistan in an effort to get them to sign the treaty and forbear further testing? MR. MCCURRY: Well, for one, that all these strict sanctions in place remain in place and cannot be removed until there are the kind of steps that would allow the President to go to Congress and suggest that sanctions should be relaxed. So to the degree that these sanctions do have an impact in these countries -- and there is a report in one of our newspapers today about the impact that sanctions are already having in India -- to the degree that that pressure begins to build on these governments and they see fit to follow the kind of course that we have suggested they need to pursue at this point, that would put the administration in a position to make a case to Congress if we were in that position to relax sanctions. We are a long way -- in the aftermath of this decision, we're not there at this point. Q When they talked at 8:30 a.m., did the President take the call? MR. MCCURRY: They -- Prime Minister Sharif had called earlier in the morning -- actually, I step back -- the government of Pakistan had called earlier in the morning and arranged the call, and it occurred right around 8:30 a.m. Q What did the President sat to Sharif when Sharif -- MR. MCCURRY: Well, he expressed exactly what he told all of you in his statement: his profound disappointment, his sense that this was exactly the wrong decision for the government of Pakistan to make. He certainly understands the arguments the Prime Minister made. He understands the unique regional and domestic pressures that the Prime Minister felt he faced. But the President, nonetheless, felt that this was a very wrong decision and regretted the fact that the Prime Minister did not see the wisdom of the argument the President had carefully made. Q Let me follow on the F-16s. Is the U.S. now obligated to return the money to Pakistan? MR. MCCURRY: Well, we will have to review that. It had been the policy of our government that we had accepted payment for the aircraft, that we were looking for some way that we could arrange for some compensation for the aircraft. The Pressler Amendment was quite clear on restricting the delivery of the aircraft themselves. We'll have to assess now, in light of this development, if there's any relief that's available. There may not be any relief. Q When do the sanctions actually go into effect? MR. MCCURRY: They're being prepared now, and they could be issued as early as later today or certainly in coming days. Q Mike, do you have an idea of the economic impact of this latest sanction? MR. MCCURRY: The question is for a ballpark estimate and if you will accept this as really only a ballpark estimate, I can run through what we anticipate some of the implications of the imposition of Glenn Amendment sanctions under the Arms Export Control Act. First, in the international financial institution lending that is done to Pakistan, it will now be the posture of the United States and its executive directors who sit on those lending institutions to oppose multilateral lending. The government of Pakistan has got a fairly extensive international financial assistance program underway. The IMF program there itself is, I think, a $1.6 billion dollar program. Now, that doesn't immediately get shut off. It's just the United States position in the IMF is that we would oppose that type of multilateral lending. Estimated disbursements by other entities, the Asian Development Bank, is expected to disburse roughly $1.8 billion during 1998 to 2000. Estimated disbursements by the World Bank are about $500 million to $750 million annually. The next disbursement under the IMF program that was anticipated was expected to be $292 million toward the end of this year. Those are all disbursements that we don't control, but it will now be our position in opposition to those disbursements. There is not much bilateral assistance to Pakistan that we have currently because of the Symington Act restrictions that are already in place, so there's not, for example, an AID program to cut off or anything of that nature because most of that was currently proscribed, as is international military education training, funding, IMET funding, not currently prohibited by law or defense, sales and export licenses, but those now, under Glenn Amendment restrictions, would be prohibited. I can give you some sense of the value, if you're interested in that, of what those licenses approved for commercial arms exports to Pakistan in the last full fiscal year that we have data for was roughly $83 million. It's $60 million currently in FY97, which is the current data that we have available. Q Mike, other than -- MR. MCCURRY: Let me just run through the rest of this, okay? License for dual use commodities, the Commerce Department regulated items -- don't have the exact value but there are 11 current license approvals in effect, 21 that are conditionally approved. That all now, of course, is affected by -- could be affected by Glenn Amendment restrictions. It's not clear that they are automatically impacted. There's no current foreign military financing program for Pakistan, but that's -- you would assume that's the kind of thing that the government of Pakistan has now foregone any possibility of as a result of this decision. And then in the area of credit guarantees and credit loan programs that we unilaterally administer, we had just recently made some decisions about restoring OPIC lending to Pakistan. That all now comes under jeopardy, although that is something a lawyer is going to have to look at a little more carefully. The Ex-Im Bank had already placed Pakistan on "on cover" status and identified about $293 million for new funding, and that is now in jeopardy as well. So, all told, I think you can see it's a very significant range of economic sanctions and a very heavy price for the government of Pakistan to have paid for what, in effect, the President today called the wrong decision. Q What was the tone of Sharif's arguments or responses to the President this morning after rejecting what sounded like impassioned appeals that the President made on four previous occasions not to go ahead with these tests? MR. MCCURRY: It would be most appropriate for the government of Pakistan to describe that, but I think it would be accurate to say that the Prime Minister clearly struggled with what was apparently, for him, a very difficult decision. He knew the costs, he understood exactly the President's argument. I think he had some sympathy for the argument that the right thing to do for the people of Pakistan and for Pakistan's place in history was to refrain from testing. But I think he clearly felt the pressure and the burden of both domestic political opinion and also the reality of the pressure he faced in the region because of the decision by the government of India. He sounded, in short, like someone who is very pained by a very difficult decision. Q What does it say about the President's clout in international affairs that both India and now Pakistan have summarily rejected his advice? MR. MCCURRY: It says that the United States of America, despite all of its wealth and its might, cannot control every event every place in the world, particularly in a place where, for five decades now, governments have fought wars and peoples have lived with incredible tension. And it just means it makes it all the more important and all the more incumbent upon the United States, given our unique role in the world, to work hard at doing the kinds of things we do. We've just recently celebrated the success of a peace effort in Northern Ireland that took three decades in the making. And the India subcontinent is a place where we're going to have to work a lot harder to resolve tensions. We'll do D.C. Control Board in a little while, Mark. Q Well, how hopeful should we be about the chances that the U.S. can try to -- MR. MCCURRY: We have already undergone -- we've already undertaken urgent consultations. I mentioned the work that the Secretary of State is doing in Brussels already. By the way, in a short while, Deputy Secretary Talbott at the State Department will be briefing. He, of course, is our most recent highest-level diplomat to have been in Pakistan. The work that we will have to do to try to encourage these parties to reach some understanding between themselves and to take the kinds of actions I described earlier with respect to CTBT, fissile material production -- the decisions they will have to make with respect to their own ballistic forces will be, we believe, impacted by the kind of diplomatic pressure the international community can bring to bear. And I suspect you'll see in coming days a real effort by the United States to join with other governments to address this. Q What kind of pressure did the administration ask the Chinese government to exert in the situation, and are you satisfied with their performance? MR. MCCURRY: We have had a very important exchange of views with the People's Republic and it would be better for the People's Republic to describe their role. We will certainly remain in close contact with them as we address a regional security issue that has always been of very keen interest to the government of the People's Republic. Q Can you say whether or not they were helpful or cooperative? MR. MCCURRY: I think I will leave it to their country. They've already said some things publicly and we are pursuing some other ideas as we exchange views with the Chinese government. Q Other than offering India and Pakistan the prospect of removing the sanctions, going back to the status quo ante, which clearly wasn't enough leverage to get them to refrain, what kind of leverage does the United States have, other than that? MR. MCCURRY: World opinion, which has turned very swiftly against the decision by the government of India and will no doubt bring some pressure to bear on the government of Pakistan as well, could have a very real impact. As I suggested earlier, there is some initial reporting that public opinion, which was initially enthusiastic in India, presumably will be enthusiastic in Pakistan, turns a bit sour when people begin to see the price they pay. You can read the reports today of power that's not available in New Delhi, the price that the citizens of India are going to pay for this decision by its government, by their government, and that will have some impact over time, we believe. Q Have you seen any sign that either India or Pakistan are actually proceeding with the next step of attaching the devices to -- MR. MCCURRY: I'm not going to describe that. That's an intelligence matter, and we are monitoring that very carefully. Q Mike, what prompted the President's call at midnight. Was he aware that they were about to test and was he trying to talk them out of it? MR. MCCURRY: We have had -- I would describe as either very good or excellent information available to us about the status of the work being done at a technical level in Pakistan, but more importantly, the President had a very good sense of the way in which Prime Minister Sharif was dealing with this decision and he felt it was incumbent upon him to make what he knew would be, perhaps, a last-minute appeal to Prime Minister Sharif to reconsider, at least to consider the importance of the argument the President made. You heard him -- President Clinton earlier today talk about the price that Pakistan has paid for this decision. And I think President Clinton felt it would have been remiss of him not to make one last effort to remind the Prime Minister of that cost. Q Does the United States give any humanitarian aid to Pakistan or India -- MR. MCCURRY: No. As I said, most bilateral assistance programs, because of the Symington Amendment, are in suspension in any event. Q There is some talk floating around that the Pakistanis -- MR. MCCURRY: I'm sorry, there are some humanitarian and food relief programs that are not restricted and not covered by Glenn Amendment, but normal foreign aid, foreign aid assistance -- Q Humanitarian and food to both countries is still -- MR. MCCURRY: In both countries, humanitarian assistance or things related to drought relief, hunger relief, can proceed. Q There is some talk of putting nuclear weapons on the missiles that Pakistan recently tested. Did the President get any assurance from Prime Minister Sharif that Pakistan would not deploy weapons if indeed they had them? MR. MCCURRY: We will continue to press upon both governments, as I just said earlier, the dangers that would arise from any weaponization of the missiles they have or any efforts to nuclearize their current military forces. I think both governments understand how strongly the United States has made that argument -- or makes that argument, and they understand the consequences that would arise from that escalation. That would be taking a situation that is already very bad and making it very much worse than it is already. Q But they didn't talk about that last night? Q Were there any assurances? MR. MCCURRY: They have had discussions about that and both governments are well aware of our thinking. Q Has the administration gotten any pressure from U.S. business groups to exercise restraint in punishing India and Pakistan? MR. MCCURRY: From business groups? Q Yes, from business groups here that might be worried that their business or trade will be affected. MR. MCCURRY: Well, the arguments that we hear from some in the business community, but not all -- some private sector enterprises, as you know, have been supportive of the imposition of sanctions, but we do hear from some in the business community that the effect of unilateral sanctions imposed by the United States is to put U.S. companies, who employ people here in the United States, at risk to those foreign governments that will not adopt similar sanctions and will go ahead and exchange commerce and goods and services with both countries. That is the price we pay for the way we use sanctions as an instrument of diplomacy. That's true whether it's China, Iran, or any of the other places where we have sanctions policies in effect. But that is our law, and this administration intends to enforce that law. Q Mike, why did the President decide to make his Pakistan statement during the patient rights event, rather than making it a separate venue and giving us a chance to ask him questions about it? MR. MCCURRY: It was the venue available and, frankly, the first available. There was a lot of pressure on us to make the President available because all of you had very strong interest in hearing from him. Q Is the Pakistani delegation still coming tomorrow, and who are they going to meet with? MR. MCCURRY: They're coming next week, and I don't have any update on who or where they will be received here. Q Does the President support Medicaid patients getting Viagra? MR. MCCURRY: It's not an issue we have dealt with here. You have to ask the health care finance agency. We'll come back on it. Let's do anything more on this. Q Even if you get India and Pakistan to de-escalate somewhat, the genie is really half out of the bottom. MR. MCCURRY: Half? Q Well, the genie is out of the bottle, maybe all the way, but even if you get them not to deploy, if you get them to sign the CTBT and everything else, they still have the nuclear capability, so we're living in a world where there are no longer simply these five nuclear powers and the unspoken nuclear capabilities in other countries. There would have to be a revamping of the nonproliferation architecture in some way to recognize that. MR. MCCURRY: No, because we have faced situations where other countries that had acknowledged, or at least were suspected of having some form of a nuclear program, renounced those programs and came into full compliance. There are ways in which that can happen under the Comprehensive Test Ban Treaty that's already been promulgated and is now in the process of ratification, but there are other ways that you can ensure compliance, too. The International Atomic Energy Agency has a full-scope safeguards program that either country could adhere to, and by becoming adherents, you would have some satisfaction that they were not engaged in a program that had any proliferation-related risks attached to it. That's the way we monitor compliance with the North Korea agreement that they made in Geneva in 1994. So there are ways in which the international community can assure itself that those -- even those that have demonstrated some capacity with a nuclear program remain in compliance and are respecting international nonproliferation norms. So there are ways in which they can turn the clock back, and that's clearly what we will impress upon them the importance of doing. Q Mike, when you spoke a moment ago about the serious consequences that the U.S. would see in either India or Pakistan weaponizing its missiles, did you mean by that the serious consequences just for the region because that would be inherently destabilizing, or that the U.S. would view that seriously and the U.S. would consider that provocative? MR. MCCURRY: I was not suggesting that it would prompt any kind of military response, if that's what you mean. The former formulation is correct, though, that it would be inherently destabilizing on the subcontinent, it would lead to further tension, it would run the risk of escalating tensions that could be resolved diplomatically into military confrontations. So that clearly makes the situation much more dangerous. Q Mike, is the United States now trying to get other countries to impose sanctions to go along? MR. MCCURRY: We are in very close consultation with other governments. As we saw with respect to the government of India, there is limited appetite in the world for the kind of economic sanctions that we impose as a matter of U.S. law, but there very clearly is sentiment to take steps that express the accumulated displeasure that many in the international community feel with these developments. There have been consequences that India has faced even as recently as yesterday at the World Bank and the decisions governments are making about lending and about other types of economic activity. Q Yes, a follow-up on that question. What kinds of steps -- what other steps, besides sanctions, would we be looking at from other countries? MR. MCCURRY: A lot of governments expressed in the wake of the test by India their own unilateral decisions. Canada did, Japan did. Some of them have assistance programs that they have suspended or forms of bilateral aid or bilateral lending that they put in suspension. Several European nations took action with respect to India. So that type of response I imagine you will see with respect to Pakistan as well. Q Mike, the Prime Minister of Pakistan, one of his arguments was that he found the response of the world community very tepid. MR. MCCURRY: Well, they made that argument at time of the G-8 meeting, and our argument in response was that the consequences that over time the government of India would feel would be significant. And as I say, there is some telling evidence that that is beginning to be the case. Q But the U.S. has taken steps, but most of the other world powers -- MR. MCCURRY: A number of other nations have taken significant economic steps -- the steps for them, since this is contrary to the way they normally use economic leverage as a tool of diplomacy, contrary to what has been their norm. So that's just not true. Q What you're saying, the rest of the world had a limited appetite -- MR. MCCURRY: -- for the kind of unilateral economic sanctions that we invoke as a matter of a law; that's correct. Q Is part of that responsible, do you think, for Pakistan going ahead and testing? MR. MCCURRY: No, I don't personally believe that. I think, based on the understanding that we can gain such as we can gain it from the conversation the President had with the Prime Minister, I think much more significant was domestic political opinion and regional security. Q Can we just nail this thing. You listed a number of dollar amounts in various world lending organizations that you said -- MR. MCCURRY: These are eyeball estimates. Q That's right, I understand. That the United States will oppose. MR. MCCURRY: Right. Q The U.S. opposing it, does that mean they are going to be cut off or restricted? Or are you simply saying that they could continue even though we oppose it? MR. MCCURRY: That we do not have in those lending institutions -- don't have controlling votes. Now, as you've seen at the World Bank, with respect to India, we have a great deal of influence on the outcome. But how we exert that with respect to Pakistan, if future decision making is done, we'll have to see how that develops. Q So, we don't go out automatically and say to -- MR. MCCURRY: To your viewers they are going to cut off all that. That's correct. Q That this is going to be cut off. MR. MCCURRY: That's correct. Q It may or may not. MR. MCCURRY: That's correct. Although there has to be some question mark put next to it. Q Mike, there's going to be a lot of people who say that Pakistan is less than culpable than India. First off, they didn't go first and there wasn't the element of deception that apparently there was with respect to India. Is it really fair that they get the same degree of punitive consequence? MR. MCCURRY: Well, as a matter of law, the Glenn Amendment sanctions are automatic with respect to both governments. The tonal quality of the way we have addressed this decision by Pakistan, I'd suggest you is different, and we would acknowledge that there's a difference in the way these two governments have dealt with the United States with respect to this test. Prime Minister Sharif was honest and straightforward in the description of the decision that he was wrestling with and in his own internal deliberations. And the government of India was manifestly not. Q So what does that get them? I mean, in other words, what substantive difference is there in the way we -- MR. MCCURRY: We will have to assess that in coming days and see if there are different ways in which we could clearly express displeasure with what we think is a wrong decision, but clearly acknowledge that there is some difference between the respective decisions. Q Mike, it's been widely reported that Chinese companies, including China Aerospace, helped Pakistan get nuclear technology. To what extent do we think China shares the blame for Pakistan's nuclear capability? MR. MCCURRY: Well, the assessments of possible Category 1 or Category 2 MTCR infractions by China and Pakistan is a matter that is under U.S. law delegated to the Secretary of State and they can provide you the best update. There has been no determination of a sanctionable event that's been made under MTCR restrictions. And beyond that, I don't know I have anything to add. Q Has the President conferred with any members of the Congressional leadership since Pakistan tested its weapons? MR. MCCURRY: Has the President conferred? Q Yes. MR. MCCURRY: No, the National Security Advisor has been in contact with several -- I don't have a full list of all of them -- but we will be in contact with Congressional leaders and others. Q What's the point, just to describe -- MR. MCCURRY: Well, we want to make sure first, because Congress is not in session, that we can brief those that we are able to brief or need to brief. Second, advise them to the steps that the President is taking, including invoking sanctions. Q Mike, the President said today that Pakistan missed an opportunity to actually strengthen its security by foregoing the tests, which is obviously something Nawaz Sharif disagreed with. Can you explain how Pakistan would have been more secure? MR. MCCURRY: In the very direct conversations we have had government to government, we've made it clear that we understand the security threat that Pakistan and its people would face because of the decision by the government of India to test. We understood that both in terms of conventional arms and in terms of security assurances, the government of Pakistan would need to be able to say to its people that they had, if refrained from testing, taken steps to compensate for what had been done by the government of India. Without detailing private diplomatic exchanges, the United States government clearly indicated that we would understand that reality and there were discussions about the need to enhance Pakistan's security in the course of making the argument to Pakistan about the reasons why it should not test. Q To follow on that, was the F-16 issue -- was that an impediment to making that case? MR. MCCURRY: Well, it was -- Q It seems like we're less credible when we shafted them on that deal. MR. MCCURRY: It was -- having been used as a stick at one point, it then became a carrot. (Laughter.) Any more on this before we do D.C. Control Board? Q Could I just follow on your response? Were there U.S. security guarantees involved in those talks or were there talks about military transfers or -- MR. MCCURRY: I just gave an artful answer that preempted that question. (Laughter.) Q Are you in a situation where all your carrots now are just the absence of sticks? I mean, in other words, the only thing you can offer them is to not do the bad thing that you -- MR. MCCURRY: I think there are other things growing in the vegetable garden. (Laughter.) ................... Q Mike, to understand better what you were talking about earlier, the United States is not unduly concerned that the examples of India and Pakistan will prompt others to go the route of nuclear test because it has confidence in IAEA safeguards and monitoring? MR. MCCURRY: No, to the contrary. There are a number of regimes that are not within IAEA full-scope safeguards, and other nations that are not adherents to MTCR, to nonproliferation treaty, other countries that have indicated no desire to conform to the Comprehensive Test Ban Treaty requirements. All of those things suggest that there are countries -- rogue nations -- that are pursuing nuclear programs. And one, among many reasons, that we deplore the decision by the government of Pakistan and India to test is because of the impact that might have on the thinking of other nations. ..............
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