For Immediate Release		May 3, 1998

PRESIDENT MUBARAK: Good afternoon. Once again, I met with Vice President Al Gore in order to cement the bonds of friendship and cooperation between our two countries. We discussed the relations of common concern in the spirit of amity and mutual understanding that characterizes our relations.

First, we discussed the Middle East Peace Process, and we are in agreement that it is of vital importance to make tangible progress on all tracks of the negotiations without delay. On the Palestinian track, we expressed our hope that the U.S. initiative will be accepted and implemented by both parties in good faith. We also agreed that the prompt resumption of the negotiations of the Syrian-Lebanese track is a must for achieving a lasting and a comprehensive settlement. No effort should be spared in order to attain that goal. We concluded that the peoples of the Middle East need to focus on improving the quality of life for each and every individual. The challenge of sustainable development should constitute the top priority for all nations at this crossroads in human history.

As you know, Vice President Gore was the driving force behind the U.S.-Egyptian Partnership. His contribution to this cause is unique and unparalleled. He is quite aware of the value of our relationship as a model for cooperation and solidarity among nations. Thank you. VICE PRESIDENT GORE: Thank you very much, Mr. President. It really is a wonderful privilege to be back in Egypt again and to meet with you again and on behalf of our American side of this Commission. I want to express thanks not only to you, but to the wonderful team that is supporting you and that has implemented your wonderful leadership in the work of our Commission.

Ladies and gentlemen, this meeting which we just concluded marks the sixth meeting of our Binational Commission, and on this occasion, we have the great privilege of being able to mark dramatic progress. I have really enjoyed the chance to learn from President Mubarak, and the chance to work with him and his team. It has been all the more enjoyable because of the progress that is so obvious now. Compared to when we started this Commission, the results are quite dramatic. Egypt's budget deficit today is less that one percent of its GDP. How many nations around the world can make that statement? Inflation here in Egypt is now extremely low. It is a dramatic success story. And Egypt is moving ahead rapidly with the whole series of common sense reforms in the legal area, the regulatory area, the administrative area, and these common sense changes that are being implemented boldly are paving the way to new trade and investment from around the world. Our nations are building thriving new means for our citizens to cooperate one with another.

As one example of our expanding cooperation, President Mubarak and I just now witnessed the signing of several important agreements on the environment, on support for small business development, and on legal cooperation. Incidentally, just as one example of the work we have been able to do in our Commission, two years ago the President and I talked about the problem of lead pollution. It's the most serious environmental problem that we still have in American cities. It's an extremely serious matter and a lot of countries are not addressing it. In just two years' time after we initiated work on this, the amount of lead in the air here in Cairo has dropped by 80 percent. That is a success story that I would assert is unrivaled in any nation anywhere in the world, to have that much progress in that short a period of time.

I can cite many other examples of the work that we have done together, but in every case the leadership has been from President Mubarak, the work has been done by him and his team. We have played a supportive and advisory role, we have enjoyed doing so, and we have learned much in the process.

Now President Mubarak mentioned we also had good discussions today about the issues important to our countries and important to the region. We discussed the peace process and our mutual hopes for progress and the talks Secretary Albright will hold in London tomorrow. I told President Mubarak of our steadfast determination to press forward with the peace process until we reach a solution which is satisfactory and which meets the legitimate aspirations of Israelis and Palestinians alike.

We also talked at length about the Partnership between our two countries, the progress within that Partnership, and the remarkable strides the Egyptian Government has been making in so many important areas. Our two nations are working together in new and productive ways to expand commercial ties significantly -- to encourage new investments, new jobs, and new opportunities for all Egyptians. We also agreed to take the bold step of directly involving the American and Egyptian private sectors in our work so that we would have the businessmen and businesswomen of our two nations talking about practical solutions to concrete business problems.

I'm also very pleased to announce that, as of today, we're beginning discussions that would lead to a Trade and Investment Framework Agreement. This agreement will enable us to achieve new trade and investment arrangements that will provide win-win opportunities for our economies and for our citizens.

You know some skeptics said that this undertaking of an Egyptian-U.S. partnership was too daunting to succeed, but here we are four years later, and I can report that the Partnership is not only alive and well, but is focused squarely on the challenge of the future. If those of you who are covering this session could have been listening to the reports and the discussions around the table, you would have been able to feel the incredible optimism about the future that is felt by every single participant on both sides. It really is a wonderful thing. We met with the Presidents' Council and with the co-chairs of the Partnership subcommittees and I want to thank all of the co-chairs and all of the members of the Presidents' Council for their contributions to the progress we have been making.

But as was clear from what we heard today, we cannot stand still. We must continue to move ahead on the government privatization program, on respect for intellectual property rights, on reducing tariffs, and on opening up the ports and key elements of the economic infrastructure to market-driven competition. And we must focus on the remaining work that we must do in the United States to respond to the concerns that have been expressed by the Egyptian members of the Commission and the Council and we will do so.

We must ensure that the Partnership benefits are shared by all Egyptians, and for all of these reasons we will be sending several business leaders from the United States to Egypt this October to aggressively evaluate the new investment possibilities because of the progress that has been made. And we're working closely on issues like environmental protection and strengthening Egypt's educational system. In that regard, I shared with all of our colleagues the experience I had this morning at the school here in Cairo where I saw the GLOBE program in operation. As I said at the time at that school, I've never seen a more impressive school in this program.

Let me just close by saying that there are many challenges that we still have to face but the progress that we have jointly achieved over the last four years leave me absolutely certain that the success we so strongly desire will be achieved. Thank you very much, Mr. President.

QUESTION: Thank you, Mr. President, I have two questions. First, Vice President and Mr. President. Vice President Gore, two days ago you made a very (inaudible) address in the support of the state of Israel and that's the standard American position. However, the question that comes to mind here in Egypt and in the Arab world, is how far does the support go? Does it go to the continuation of the occupation of Arab territories? Does it go to the support of Israeli settlements in the Palestinian territories? You just said that peace should achieve the aspirations of both peoples, Israelis, Palestinians and the Arabs as well. With the American support here, it has to be defined I think for us and for the Israelis as well. For President Mubarak, tomorrow will be the London round of negotiations. Mr. President, do you think that this round will be different than the other rounds, and if it fails, what is your expectation about what will happen in the area? Is there another alternative to the London round? Thank you.

VICE PRESIDENT GORE: Let me say that we in the United States believe very strongly that a successful conclusion to the talks being held in London tomorrow and ultimately a successful conclusion to all of the tracks now under way in the peace talks will be very much in the best interest of Israel and in the best interest of the Palestinians, and in the best interest of the region as a whole. There is absolutely no inconsistency whatsoever in feeling an historic friendship for Israel, and feeling passionately that it is in the best interest of Israel and of our other friends in the region to have a successful conclusion in this peace process.

PRESIDENT MUBARAK: If the question is about the London meeting which takes place tomorrow, I could tell you very frankly, I hope that they could conclude something for the sake of peace and stability in this part of the world. We are waiting, we should just see what's going to happen tomorrow. But if the meeting is not a success, I fear that this may lead much more confrontation in the future. What's going to happen after that? What other steps would be taken? We'll wait for the Palestinians to say, because they have to decide, they have to accept or to refuse whatever is being proposed for them.

QUESTION: I have two questions, first to Mr. Vice President. You said yesterday in Ramallah that the most difficult questions are the ones that are left to the last days and hours of the process. Don't you think, Mr. Vice President, that this means that there is a need for an active, positive American role, more than any other side, even if London talks fail? This is one question. To Mr. Mubarak, Mr. President, does Egypt look at the American initiative as the basis for fair negotiation or as a formula to be accepted by both sides after failing to reach agreement on their own? Thank you.

PRESIDENT MUBARAK: What was the question again.

QUESTION: Does Egypt look at the American initiative?

PRESIDENT MUBARAK: Look, the American initiative which is about 13 percent as I heard, it is kind of between the needs of the Israelis and what the Palestinians have asked before. But if it is accepted, it should be followed by other steps forward. Otherwise, it will reach the same situation.

VICE PRESIDENT GORE: Let me respond to the first part of your question. I don't want to accept a hypothetical question about the outcome in London. Let's focus on the strategic opportunity for progress which is now before us. You know the United States has not publicly presented or published any specific formula. But in respect to the wording of the first part of your question, I don't know how the United States could be much more active in the peace process than you have witnessed with Secretary Albright and with the President and with the individuals who have been meeting so constantly with the parties. I myself have had an opportunity to engage in discussions with the leaders involved and share impressions about the factors that I hope they will put into the larger context of this strategic opportunity to make progress. Now, there is a long way to go in the peace process regardless of the outcome in London. There are other tracks. President Mubarak spoke about our mutual desire to see a speedy resumption of the Syria- Lebanon track. I would say that a successful outcome of the talks in London would provide a wonderful springboard to see renewed progress on that track. We could speak about the others as well. Mr. President, may I call on an American? I saw some hands up.

QUESTION: Both you gentlemen are actively involved in talking to various Middle Eastern leaders about the peace process. I just want to know if you can give us a sense of what your message is. Are you suggesting that perhaps time is running out, if things don't change?

PRESIDENT MUBARAK: Suggest what, please?

QUESTION: That time is running out.

PRESIDENT MUBARAK: Anyway, I think we cannot impose anything on either side. Even on the Palestinians, we cannot impose anything like proposals to be put before them. Study it and take your decision. Anything concerning the land has to be decided by the people responsible. We hope from our heart that the London meeting will be a success because we fear what may follow after that. That's why I met Prime Minister Netanyahu a couple days ago. I'm going to see Mr. Arafat now. We are trying to find the way, we're trying to push them to understand the situation and take the proper decision in the proper time to save the peace process.

VICE PRESIDENT GORE: I want to compliment President Mubarak on the positive role that he has played and thank him for his leadership. For our part, the United States has expressed the view to both sides that this is an important opportunity and that a successful conclusion to these talks would be very positive for both sides. It is an opportunity we hope they will seize.

QUESTION: Mr. Vice President you've visited four or five leaders over the last four days or so. What have you learned about the Middle East Peace Process over these days and through these talks, and what are leaders telling you about what needs to be done at this point. Is there a sense that if thins do not get better, they might get worse?

VICE PRESIDENT GORE: Well, I've learned first of all that this opportunity is an extraordinary one. The stage is set for progress in these discussions that would have significant leverage over the future of the entire region. I've also gained a renewed appreciation for how difficult and how complex these issues really are. Someone quoted a statement I made last night to the effect that it's natural in the course of a negotiation that the most difficult issues are the ones that remain at the end of the negotiation. That's just the way it always happens and whenever you talk with the parties you come away with the renewed appreciation of how difficult they are and the complexity involved. But when you look at the complexity and you look at the wonderful positive benefits which could accrue to both parties and to the whole region if progress did occur, you come away with an intensified desire on behalf of the parties themselves that they come to a successful resolution.

QUESTION: Thank you. The question is for Vice President Al Gore. While in Israel, we saw you on television screens congratulating the Israelis on their 50th anniversary. My question is, Is it legitimate for this area to wish or even dream that one day a high American official would come to congratulate the Palestinians in their own homeland? Thank you.

VICE PRESIDENT GORE: Well, before doing that, I would like to formally congratulate Egypt on its 5000-year anniversary coming up soon. We look forward to moving into the final status phase of the negotiations. And the way to get there quickly is with a successful resolution of this stage of the talks. And the way to improve the chances that final status negotiations will be successful when they finally begin is to avoid too much discussion about the matters that would be involved in that stage of the talks.

QUESTION: My question is addressed to President Mubarak. Sir, there's been considerable criticism in the United States of some of the journalistic, editorial, and I believe religious commentary in your country about Israel and the Israelis. Can you tell us what you think about that and whether it has an affect on the atmosphere of the peace talks?

PRESIDENT MUBARAK: I would like to hear the question again.

QUESTION: Sure. There's been a considerable criticism in the United States about some of the commentary in your newspapers, in your magazines, I believe even in your mosques about Israel, some negative commentary about Israel, about the Jewish people. I wonder if you would comment on that and let us know what you think about its effect on the peace talks.

PRESIDENT MUBARAK: I would like to tell you something. The press here is free, as you know very well, and sometimes we have problems with the press, but we cannot interfere in their work. Concerning the mosques, what do you want us to do with the sheikhs in the mosques? They can express their feelings. But we cannot control them as you think. There are private mosques, not governmental mosques, so we cannot control that. Thank you very much.