THE WHITE HOUSE
  
                    Office of the Press Secretary
  
 For Immediate Release                               June 15, 1992
  
                             PRESS BRIEFING
                                   BY
                    SECRETARY OF STATE JAMES BAKER
  
                           The Briefing Room
  
 12:20 P.M. EDT
  
           SECRETARY BAKER: Ladies and gentlemen, we have a notice
 to the press that -- I don't know whether it's been passed out to
 you or not -- that gives the schedule for the meetings between
 President Bush and President Yeltsin.  I have a brief statement
 that I'd like to give, and then I'd be delighted to try and take
 your questions.
  
           The starting point for this summit is very
 straightforward; it is democracy and freedom.  Russia is now
 democratic.  The captive nations of the former Soviet Union are
 free.  So these facts create an entirely different context for
 this Washington summit, presenting opportunities that were,
 indeed, unimaginable during the Soviet era.
  
           As he meets with President Yeltsin, the democratically-
 elected leader of an independent and democratic Russia, President
 Bush is focused on building a democratic peace with Russia.  This
 would be a fundamentally different peace than the peace that
 existed during the Cold War because it would be built on our
 shared democratic values, not competition, nor a balance of
 terror.  It would be a true and enduring peace, not a cold peace
 such as existed during the Cold War when all we could hope to do
 was to manage conflicts and contain crises.
  
           Now we aim to build a true partnership and friendship
 with the Russian government and the Russian people.  The
 President's discussions with President Yeltsin will focus on the
 full range of our relations -- political, economic, and military.
 our hope is not just to exchange views now, but to chart a new
 agenda in our relations, and agenda built on democratic values
 that can guide us well into the future.
  
           Let me discuss several critical topics that the
 President expects to discuss with President Yeltsin.  First of
 all, the President will want to hear about the situation in
 Russia and how President Yeltsin's efforts to build democracy are
 proceeding. We've been making progress on many issues, for
 example, POW-MIA concerns, and the President will want to express
 our appreciation to President Yeltsin for his efforts in these
 areas.
           Second, the President plans to discuss the state of
 Russia's relations with its neighbors, particularly Ukraine, the
 Baltics, and the trans-Caucasus states.  The President will also
 want to see how we may be helpful in resolving the Northern
 Territories dispute with Russia's neighbor and potential partner
 in the Pacific, Japan.
  
           Third, the two Presidents will want to discuss European
 security.  In particular, they will discuss the continuing
 humanitarian nightmare in Bosnia; the steps that we and others
 collectively take to try to alleviate the terrible human
 suffering in Sarajevo; and the possible mechanisms that we might
 propose to improve Europe's ability to prevent and manage
 conflicts and to strengthen the capabilities for peacekeeping,
 including a role for NATO.
  
           Fourth, we will discuss next steps in arms control and
 defense cooperation.  Obviously, the Presidents hope to reach an
 agreement on further far-reaching resolution in strategic nuclear
 weapons.  But we also plan to discuss how we can work together to
 combat proliferation both through efforts in places like North
 Korea, through strengthening nonproliferation regimes and through
 working together on missile warning and strategic defenses.
  
           With the Cold War behind us, we also want  to move
 toward partnership between our militaries.  And the President
 will want to discuss ways we can and will deepen and widen our
 military contacts and dialogue.  President Yeltsin is pursuing a
 courageous path toward free markets and President Bush will want
 to hear how recent steps fit into the overall reform effort.  In
 particular, the President will want to discuss Russia's efforts
 at microeconomic and structural reform, privatization and
 demonopolization.  As Russia works with the IMF on putting
 together its macroeconomic reform program, we feel it is also
 essential that Russia move forward quickly with progress on
 microeconomic reform as well.  This is, of course, essential for
 promoting the growth of a middle class in Russia and for
 stimulating the involvement of our private sector in Russia's
 reform efforts.
  
           Finally, President Yeltsin has various appointments
 around Washington, the most important of which is undoubtedly his
 address before a joint session of the Congress.  On April 1st the
 President sent the freedom support act to the Congress, asking
 both the Senate and the House to join him in supporting democracy
 and freedom in Russia and in the new independent states.  It was
 the President's goal to have the freedom support act passed by
 the time President Yeltsin arrived here.  We hope that the Senate
 will exert leadership and pass the freedom support act this week.
  
           Further, we hope that after hearing personally from
 President Yeltsin on this subject, that both Houses will move
 quickly to join in a bipartisan fashion with the administration
 to pass the freedom support act, thereby signalling America's
 unequivocal and bipartisan support for democracy in Russia and in
 the new independent states as a whole.
  
           Q    Are both leaders going to sign a new arms
 reduction treaty -- nuclear arms?
  
           SECRETARY BAKER:  Well, as I just indicated in my
 remarks, I think that is very much the hope of both of the
 leaders.  There is no such agreement as yet.  I spoke to the
 Russian Foreign Minister as recently as last night, and I will be
 meeting with him this evening after the presidential party
 arrives to try and iron out four or five differences that still
 exist that we have to --
  
           Q    Well, what's the problem?  I mean, it seems to me
 you're going down to the wire.  You really do have it, don't you?
  
           SECRETARY BAKER:  No, I don't think you can say we
 really do have it.  I wish we did.  We have four or five
 problems, at least two of which are extraordinarily difficult
 problems that we hope to work through.  But we do not have it.
 We hope to have it during the course of President Yeltsin's
 visit.
  
           Q    Are you concerned that by the slowing of the pace
 of reforms that Mr. Yeltsin has pulled back on some of his
 economic reforms?  Is there any doubt in your mind about his
 sincerity?
  
           SECRETARY BAKER:   I've said before that I think that
 what President Yeltsin and his  colleagues are doing represents
 the height of political courage.  When you look at what they are
 trying to do -- and that is completely change politically,
 socially and economically a system that has existed for 70 years
 into the opposite model, it represents extraordinary political
 courage.  So there are difficulties in getting it done.
  
           My sense is that President Yeltsin and his team are
 very much still committed to the reform effort, that they are
 committed, indeed, to the shadow program that they agreed to with
 the IMF, and that they understand the need to carry forward with
 the reforms if they are going to receive a stand-by agreement
 from the International Monetary Fund.
  
           Now, having said that, I've spent three and a half
 years, as you know, dealing with these problems, and I've never
 seen a country yet that didn't have some trouble with one element
 or another of a very comprehensive IMF reform program, and that's
 what I think you're seeing now with Russia.
  
           I think that they will remain committed to the major
 components of that program because they know how important it is,
 and they know -- I think they believe that reform otherwise will
 not succeed. But it should not be surprising to anybody that
 there are tremendous political pressures that make it very
 difficult to do.
  
           Q    Mr. Secretary, on the question of proliferation,
 let me ask you about the Middle East. Does the United States feel
 that China is honoring the pledges that it made to you last
 November about stopping the spread of weapons of mass destruction
 to the Middle East, and specifically, does the United States
 believe that, North Korea is acting as a proxy for China in the
 delivery of some weapon systems to the Middle East?
  
           SECRETARY BAKER:  With respect to the latter question,
 John, I have not heard the suggestion made that North Korea is
 acting as a proxy for China.  There may be some in this vast
 government of ours who believe that; I have not seen any reports
 to that effect and I have not seen any suggestions to that effect
 by responsible officials.
  
           With respect to whether or not China is adhering to the
 commitments they undertook when I was there last November, I
 should say that in the trade field we feel that they are living
 up to the commitments that we received.  In the field of
 compliance with the requirements of the missile technology
 control regime, which is the only commitment that I obtained when
 I was there in November, we think they are, so far, living up to
 that commitment.  And I think we are watching that fairly
 closely.
  
           With respect to the very modest commitments that we
 were given on human rights, there's still a lot of room for
 improvement.
  
           Q    Can you tell us, are you worried that Yeltsin is
 going to go away from this summit without any clear commitment on
 economic support, that because of Congress not acting you're
 going to have to send him away empty-handed again and that that's
 going to create problems?
  
           SECRETARY BAKER:  Well, one of the reasons that we were
 hopeful that the freedom support act would be passed by the time
 President Yeltsin got here was so that we could demonstrate that,
 as a country, as a whole, we were united in our desire to support
 democracy and reform when it finally comes to Russia.   I've said
 before I think that this is a once in a willing to spend some dollars now
 to lack in this once in a century opportunity.
           I hope and believe that the Senate will move the bill
 this week.   And if they do I think that will be a very, very,
 good sign.  I am heartened by the fact that Committees in both
 Houses, the Senate Foreign Relations Committee and the House
 Foreign Affairs Committee, have reported the bill out positively
 by fairly significant margins, and I should say, have taken care
 in the process of some objectable amendments that the
 administration opposed.  So on balance, I'm encouraged that the
 Congress will move.  I think it is important.  I hope that
 President Yeltsin and his team understand the requirements of the
 legislative process here, just as they ask us to understand the
 requirements of the legislative process in Russia.
  
           Q    Sir, can you tell us any more about this
 revelation by Yeltsin about these 12 downed American pilots going
 back to the 50's.  The President said in Rio on Saturday he was
 surprise to hear about, that Gorbachev had assured him and denied
 that any such thing had happened.  The family of at least one of
 these people is coming to Washington to try to find out what
 happened to this particular flyer.  Can you give us the history
 of this?  Didn't our reconnaissance photos, the U-2 and so forth,
 didn't it know what happened to some of these pilots?
  
           SECRETARY BAKER:  I can't answer that, I would have to
 refer you to the Pentagon with respect to whether we knew back in
 the 50's that there were downed pilots in the Soviet Union.  I
 would point to this, though, as an example of the kind of
 cooperation that we now see on the part of a democratic Russia,
 and just another example of why I think it is important to the
 United States that democracy and reform in Russia succeed.
  
  
           Q    Can I just follow that up?  When you talk to the
 Russian Foreign Minister as late as last night, did you ask him
 if they'd uncovered any more information about these 12?
  
           SECRETARY BAKER:  I didn't ask him specifically about
 that.  I have had fairly extensive conversations in the past
 about cooperation on POW-MIA matters, and I think we're now
 seeing cooperation.  But I was not -- no, my conversation with
 him dealt with strategic weapons and cooperation in defenses and
 that sort of thing.
  
           Q    My story said that we still have --
  
           SECRETARY BAKER:  Just a minute, Sarah, we've got
 somebody asking a question up here.
  
           Q    Do you read any significance into President
 Yeltin's decision to appoint Mr. Gaydar as Acting Prime Minister?
 Do you think he did that to send a signal in advance of his
 arrival here?
  
           SECRETARY BAKER:  I do.  I think it sends the signal
 that one of the champions of reform and commitment to the free
 market is still very much a player, contrary to earlier
 assumptions on the part of some that he was going to be eclipsed,
 particularly during the visit, by some other people.
  
           Q    Sir, following up on the gentleman's question on
 POW's, the story says that there might be some live POW's still
 left over there; we don't know, and we were waiting for the
 answer.  And Mr. Yeltsin had been giving information that the KGB
 lied about before, so I wonder if you can't get something,
 particularly because -- you know, there was a charge going around
 here a long time ago, and I think you denied it, that you,
 yourself, had contributed
  
      SECRETARY BAKER: That I had what?
  
      Q    Shredded names of POWS over there.
  
      SECRETARY BAKER: Shredded names of POWS? well, that is
 ridiculous.
  
      Q    -- big flack about that around, and I know you
 denied it before, I think.
  
      SECRETARY BAKER: I never denied it before, because I've never heard
 of it before, and I don't know anybody who has heard of it before.  But
 let me say, we continue to talk to the Yeltsin government about POW-MIA
 cooperation and we are getting very good cooperation.  We now have a joint
 Commission that has been appointed and former Ambassador to the Soviet
 Union Malcolm Toone went over there and there's a lot of very good
 cooperation now between the two governments, and I'm sure that will
 continue.
  
      Q    Mr. Secretary, are you intending to stay at the
 State Department for the remainder of Mr. Bush's first term
 rather than come either to the White House or the Bush-Quayle
 campaign in some managerial capacity?
  
      SECRETARY BAKER:  Look, I've said before that there have been no
 discussion about that subject, and if there were going to be, it wouldn't
 be in this forum.
  
      Q    This is a nice, safe one.  In your topics you didn't list the
 Middle East.  Will you discuss it at all with Boris Yeltsin or are all
 Russian-American moves moribund until after the Israeli elections on the
 Middle East?
  
      SECRETARY BAKER:  The Middle East will be one of the regional topics
 that will be discussed.  And whether it will be discussed at the
 presidential level or at the foreign minister level I can't answer for you
 right here now.
  
      Q    A follow-up.  Today Bill Clinton again criticized the U.S. about
 the loan guarantees.  Is there any movement on that or is that again going
 to wait until after the Israeli elections?
  
      SECRETARY BAKER:  Well, that issue is right where it has been.
  
      Q    Mr. Secretary, you were asked whether there was a danger Yeltsin
 would go away empty-handed on economics and you only came up with one
 example, which was maybe the Senate would pass the bill.  Is there
 anything else that you can give him --
  
      SECRETARY BAKER: Oh, yes --
  
      Q    -- and in particular, they are looking for assurances that the
 United States and other major members of IMF will make sure that package
 goes through even if their out of compliance on some of the letter of the
 regulations like on energy prices.
  
      SECRETARY BAKER: Well, I meant to at least signal that we think it's
 important that they make sure they comply with the major elements of the
 IMF program.  But if you say you've got to hold them to each and every --
 crossing of each and every t and the dotting of each and every I, that
 isn't the way it works, that isn't the way it normally works with any
 country and it shouldn't work that way with Russia.
  
      They will also be going away with more than just what I alluded to.
 I mean, we're talking about a trade agreement; we're talking about MFN;
 we're talking about the possibility of a bilateral investment treaty -- we
 don't have that one yet nailed down.  So there will be a number of other
 economic benefits I think flowing both ways from this trip.
  
      Q    So as far as IMF is concerned, as far as you're concerned, they
 still qualify?
  
  
      SECRETARY BAKER:  Oh, yes.  But they need to continue to make sure
 that they're taking the steps that are called for in the reform program.
  
      Q    Mr. Secretary, is the administration satisfied with the vote of
 the Japanese Parliament to permit some limited Japanese military
 participation in the U.N. peacekeeping forces? Does that go far enough in
 our view?
  
      SECRETARY BAKER:  That's a matter really for Japan to determine, and
 I wouldn't want to inject myself in the middle of that debate, which is
 contentious enough as it is.
  
      Q     Mr. Secretary, Mr. Yeltsin in his interviews last week made a
 great deal of the importance of a charter to be agreed between the two
 countries, principles of relations and so forth.  It sounds like the kind
 of thing that previous administrations in the United States have had a lot
 of trouble with because it's so general and seems to commit but doesn't
 really commit.  Are you going to promulgate such a charter and why do you
 think this will help things at this point?
  
      SECRETARY BAKER:  The answer is yes, we are. And the reason that
 we're going to do it is because, as I just indicated in my formal remarks
 to you, it's a new day.  This summit is going to revolve around democracy
 and freedom.  We don't now have a situation where bitter adversaries,
 bitter enemies are meeting. So it's quite appropriate, I think, to have
 such a charter and we will have one.
  
      Q    Is the President going to offer any new initiative on limiting
 nuclear testing?
  
      SECRETARY BAKER:  No.
  
      Q    Mr. Secretary, this list of assistance and support for the IMF,
 is any of that conditional upon the finalization of the nuclear treaty?
  
           SECRETARY BAKER:  No, none of that is conditioned and there's
 been no linkage between the two.  Let me, Susan, make sure you understand
 what I'm saying -- I'm saying there will not be such a proposal in
 connection with this summit.
  
      Q    Is that then one of the sticking points that we're talking
 about--
  
      SECRETARY BAKER:  No, no, no.  That's not -- no, that's not one of
 the four or five things we're working on.
  
      Last question, Barry.
  
      Q    Assuming that the cease-fire in Yugoslavia holds, do you have a
 sense of how soon it would be before American transport planes would begin
 to take supplies in there?
      SECRETARY BAKER:  No, I don't have an estimate of the timing for you.
  
 As you know, our military planners have been up in New York.  We are
 increasing the amount of intelligence that we are supplying to the United
 Nations and we've made it clear I talked *** one line is missing
 ***whatever we can to assist the United Nations humanitarian effort in
 Bosnia.
  
              Thank you.
  
              THE PRESS:  Thank you.