Remarks by President Bush, Prime Minister Harper of Canada, and President Calderon of Mexico in a Joint Press Availability

    WASHINGTON, Aug. 21 /PRNewswire-USNewswire/ -- The following is a
 transcript of remarks by President Bush, Prime Minister Harper of Canada,
 and President Calderon of Mexico in a joint press availability:
     Fairmont Le Chateau Montebello
     Montebello, Canada
 
     11:57 A.M. EDT
     PRIME MINISTER HARPER: (As translated.) Might I, first and foremost,
 thank all the people here and the citizens of Montebello for giving such a
 warm Quebec welcome. You are quite right to be proud of your beautiful
 Montebello manoir and the area.
     As the leaders of the three countries, our discussions between
 President Bush and myself were very cordial, constructive. Our three
 countries maintain peaceful, productive relations and give great
 contributions to our people. It is part and parcel of our commitment to
 democracy, free market, NAFTA, and the equality of chances to all citizens.
     This is a unique moment to look at the individual aspects that we could
 look at and the challenges that we have to face. We agreed to discuss the
 protection of the consumer and looking at the non-secure products entering
 the nations, in particular those going to our children.
     We also recognize the fact to find practical, pragmatic solutions to
 our mutual environmental challenges. Our countries are working to find our
 own sustainable energy and to find national standards on energy efficiency.
     Finally -- and this is particularly important for Canada-- we realize
 that border security must not threaten the friendly relations that we have.
 We undertook agreements on cooperation, standards, regulations,
 intellectual property, and research in the energy field. In the framework
 of this summit, we met the North American Competitiveness Council. Their
 leaders provided us with valuable information on how we could exploit our
 partnership in the field of security and prosperity to strengthen our
 economies and to create good jobs here in North America.
     Our discussions did not merely deal with North America. We also
 discussed a number of other international and hemispheric questions:
 climate change, and to the next meeting of the Middle East discussions,
 where our countries are defending democracy and freedom, and protecting the
 have-nots.
     This summit enabled us to discuss our singular bilateral discussions.
 President Bush and myself met yesterday afternoon. We discussed a number of
 subjects, in particular our joint commitment to have a secure border that
 shall remain open to goods and services, and to the interaction between the
 our respective citizens.
     President Calderon and myself also had a meeting yesterday evening, and
 I would like to thank President Calderon and his wife Margarita and their
 children, Maria, Felipe, for having passed a wonderful time with us last
 weekend. We understand that you have had to shorten your stay, due to the
 consequences of Hurricane Dean on your country. I sincerely regret the
 terrible aspect of this Hurricane Dean on Mexico, but I understand the
 concern, that the Mexican authorities have assisted in evacuating a
 Canadian citizen.
     We have also been able to arrange our agenda yesterday to discuss
 important matters for our respective nations. We were able to discuss a
 number of different matters, and the flourishing development of trade
 between our two countries, and that we shall pursue in the future Canada,
 United States and Mexico, our good neighbors and good friends.
     As sovereign nations in our modern world, we are not merely independent
 but also interdependent. And we are determined to cooperate for our mutual
 security, our continued economic growth, and the improvement of our North
 American relations are unique in the world.
     (Speaks in English.) -- the staff here and the people of Montebello for
 their warm Quebecois hospitality. You have every reason to be proud of this
 magnificent resort and this beautiful region.
     As host of this year's North American Leaders Summit, it's my
 responsibility and pleasure to report that the discussions between
 President Bush and Calderon and myself were as cordial as they were
 constructive. Our three countries share peaceful and productive relations
 that are of considerable benefit of the people of our respective nations.
 These relations are rooted in our common commitment to democracy, free and
 open markets through NAFTA, and equal opportunity for all of our citizens.
 This week's summit has provided an opportunity to share individual
 perspectives and to take stock of the challenges that we face together.
     We agreed to work together on consumer protection. We have to identify
 and stop unsafe goods from entering our country, especially those designed
 for our children. We also agreed on the need for practical solutions to our
 mutual environmental challenges. Our countries are already working together
 to develop clean and sustainable energy, and we're cooperating on national
 fuel efficiency standards.
     Finally -- and this is especially important for Canada-- we agreed that
 border security measures, critical as they are, cannot threaten the bonds
 of friendship or commerce between us.
     Over the past year we've achieved agreements on regulatory cooperation,
 pandemics, intellectual property and research in energy. As part of our
 summit, we also met with the North American Competitiveness Council. The
 Council's business leaders have provided us with good, practical advice on
 how we can build our Security and Prosperity Partnership, to strengthen our
 economy, and create good jobs right here in North America.
     But our discussions were not focused exclusively in North America. We
 also discussed a range of international and hemispheric issues from climate
 change to the upcoming APEC meetings, from the Middle East to Haiti, where
 all three of our countries are working to advance freedom, democracy, and
 development for the most impoverished people.
     Moreover, the summit provided opportunities for one-on-one discussions
 about our unique bilateral relationships. President Bush and I met
 yesterday afternoon. We discussed several matters, including our joint
 commitment to a secure border that remains open to the exchange of goods
 and services and the interaction of our people.
     President Calderon and I met last night. First let me take the
 opportunity to thank the President, his wife Margarita, and their children
 Maria, Felipe, and Juan Pablo, for spending some time this past weekend
 with our family. I understand you're cutting your visit short, given the
 impact of Hurricane Dean on your country. I regret the cost of this
 terrible natural disaster. At the same time, we appreciate the efforts of
 the Mexican authorities to secure the evacuation of Canadian citizens.
     I'm grateful we were able to arrange our schedules yesterday to meet
 and discuss matters formally before your departure. We had the opportunity
 to discuss many issues related to the growing relationship between Canada
 and Mexico that we're going to lead forward together.
     Canada, the United States and Mexico are good neighbors and good
 friends. As sovereign countries in the modern world we are both independent
 and interdependent, and we're committed to working together on mutual
 security, continued economic growth, and expanding our unique North
 American relationship.
     President Bush.
     PRESIDENT BUSH: Thank you, Prime Minister. Thanks for having us here.
 I, too, want to thank the good folks of Montebello for their wonderful
 hospitality. The food was good, the hospitality was warm. You picked a
 great place to come.
     I expressed my country's concerns for the citizens whose lives will be
 affected by Hurricane Dean. I respect the fact that President Calderon has
 decided to get back to Mexico as quickly as possible in a safe way. I want
 you to know that U.S. agencies are in close touch with the proper Mexican
 authorities, and if you so desire help, we stand ready to help. The
 American people care a lot about the human condition in our neighborhood,
 and when we see human suffering, we want to do what we can to help
 alleviate that. So we wish you all the best.
     These meetings are -- I'm not going to try to reiterate what Stephen
 said. He went through the list of the meetings. And he's a -- he's right,
 that we talked about a lot of issues. I just want to give you the spirit of
 the discussions and why I think they're important.
     It's our people's interests that Canada and Mexico work closely
 together. In other words, there's a good reason why our leaders should come
 together on a regular basis. First reason why is to figure out ways to
 continue to enhance prosperity. It's in our interests that the Canadian
 lifestyle be as strong as it is, and it's in our interests that prosperity
 spread to Mexico. If you're a U.S. citizen, you want people that live close
 to you to be prosperous. The more prosperity there is in your neighborhood,
 the more hopeful your neighborhood is.
     NAFTA, which has created a lot of political controversy in our
 respective countries, has yielded prosperity. Since NAFTA came to be, trade
 between our respective countries has grown from $293 billion a year to $883
 billion a year. Now, for some, those are just numbers; for many, it's
 improved wages and a better lifestyle and more hope. And the question that
 we're faced with is how do we continue to enhance prosperity so the average
 citizen understands the benefits of three countries working together? And I
 think we made some good progress toward eliminating barriers and toward
 harmonizing regulations to a point where more prosperity will come to be.
     And we discussed a lot of other issues. We discussed bilateral issues.
 Stephen and I talked about border issues. Of course, Felipe Calderon and I
 talked about border issues and migration. These are complicated issues, but
 they're issues that we can work out in good spirit as friends.
     One reason one meets is to reconfirm friendships, is to make sure that
 not only at the leaders' level is there conversations taking place that are
 friendly, but that that spirit translates throughout our governments. And I
 think we've accomplished that objective today.
     We also talked, as Stephen mentioned, about international issues,
 issues concerning South America, the Middle East. These are meaningful
 discussions. I'm glad I came and I'm looking forward to hosting them next
 year. Matter of fact, it's in the interests of our countries that we have
 these meetings on an annual basis and then have working groups follow
 through on the discussion items that -- during our meetings with the
 business leaders or our own Cabinet Secretaries.
     And so thanks for having me.  It's been worthwhile.  I appreciate it.
 
     PRIME MINISTER HARPER:  Senor Calderon.
     PRESIDENT CALDERON: Gracias. (As translated.) Thank you, Prime Minister
 Harper and President Bush. In the first place, I would like to thank very
 specifically -- I thank you for the solidarity, the understanding and the
 support that I have received from you in order to adjust my schedule to
 exhaust pending matters and allow me to return in good time in order to
 personally tend to the emergency situation that we have to face in the
 Yucatan Peninsula.
     Your understanding and support is also accompanied by the offers of
 help and solidarity to the victims of this natural disaster. So far --
 well, it would be too early to assess the scope of the damages. So far
 there have been no fatal victims. We can't be sure yet, but we are
 monitoring the situation every minute, monitoring the hurricane. And as a
 matter of fact, I'm returning to Yucatan right away, as soon as my aircraft
 can land, and supervise the rescue missions.
     I would also like to thank very sincerely -- thank you for the
 hospitality and for the human warmth, for the very welcoming attitude of
 Mr. Harper's family. And I do value this. It was a marvelous weekend for my
 family, such a typically Canadian place -- typically Canadian places are
 amongst the most beautiful in the world. And I would like to thank your
 wife, Laureen, and your children for your offer to spend this time with my
 family, with my wife, with my children. And I hope I'll be able to return
 your very nice present in Mexico.
     Now, this meeting allows me to reenforce the conviction that North
 America as a region still has not developed the enormous potential it has,
 and I'm more convinced about this today than ever before, that it has to be
 developed. There's no doubt that the globalization process that we are
 currently experiencing is definitely pressuring throughout competitiveness
 of our countries -- and not only countries, but the competitiveness of the
 countries that have joined into regions.
     Now, Canada, U.S. and Mexico have to act together in order not only to
 improve the quality of life of our people, but also to prevent the vast
 integration process that we've seen in other parts of the world -- Asia,
 Europe, very specifically. We don't want this to displace our producers and
 displace opportunities for our consumers.
     Now, through working groups that we've established, through the
 opinions of the businessmen of all three countries and their
 recommendations to our respective governments, it's clear to me that
 there's an enormous agenda that has to be developed, carried out. So I
 believe that we must relaunch in a stronger way the strength of the
 relationship between the free countries of North America. That is to say
 that each country, each government is facing within their own public
 opinion -- particularly in Mexico, maybe in the U.S. - - they're
 encountering resistance in relation to one or another aspect --
 investments, integration, border crossings, and regulatory aspects.
     And all these matters, which most of them are covered by the
 recommendations of the businessmen that we met, they come to stand still.
 And this is a result of the concerns in each country, obstacles to economic
 integration of our region. I believe we should reassess -- or we should
 have our people reassess -- what all this means to the common citizen, the
 region; what it means to the consumers to have better prices and better
 quality in the products they consume; also in what it represents for
 companies to have access to commodities that are more efficient, more
 productive, better quality and better priced; also what it represents to
 our workers to have available work, thanks to the fact that North America
 can be a fully integrated region.
     Now, at the same time, there are complementary characteristics between
 the three countries, and this has got to be very specifically addressed in
 order to leverage the situation in this new century of globalization.
     And we agreed also to prioritize certain issues that have been followed
 up on. For example, when it comes to regional competitiveness, it's quite
 clear that this is a very important priority. Also the border area issue;
 we all want secure and also efficient borders -- borders that will allow
 the border crossing of those who build, who contribute, and of course,
 prevent border crossings to those that damage our societies: organized
 crime, drug trafficking, all the trade in illegal goods.
     Also we talked about sustainable development and the challenges facing
 our countries by a region and by humanity as a whole. We talked about our
 common purpose to find reliable alternatives that will allow us, on the one
 hand, to preserve the environment, and at the same time, that will not
 force us to detain or stop our development and thereby have an impact on
 the prosperity of our people.
     We also talked about security. This is a topic that concerns us all,
 but as President Bush said, we talked about prosperity. And I believe that
 this meeting -- in my case, it's my first meeting, first meeting I'm
 participating in -- I think this meeting could be the beginning of a new
 age in the framework of the relationship of the three countries, and
 particularly if we relaunch trade exchange, and also if we are able to take
 advantage of our potential.
     I also thank President Bush for his invitation to come to Texas next
 year in order to continue with these talks. And also Mexico is interested
 in hosting the meeting in 2009 in my beloved, dear, beautiful country.
     Therefore the issues were multifarious and we took advantage of the
 time we had, although it was reduced because of this emergency situation
 that we're facing. I'm very happy that the environment within which we
 worked was very positive, very constructive on the part of everyone in
 attendance. And we hope that we'll be able to follow up on all the
 commitments, on the priorities that we've established and on the
 recommendations that we've received from the business sector.
     Thank you very much, Prime Minister Harper, for your hospitality. Thank
 you to the Canadian people and to the people of Quebec for your
 hospitality, and to the staff of this wonderful place in Montebello that
 treated us so generously. And, well, we will be at your disposal when you
 come to us.
     MODERATOR: To the press, good afternoon. We'll begin with the press
 conference. And just a reminder, it's one question per reporter. We will
 start with Ben Feller, Associated Press.
     Q Thank you all. Mr. President, yesterday, Senator Levin, Chairman of
 the Armed Services Committee, said that the Iraqi parliament ought to oust
 Prime Minister Maliki and his government for being politically unable to
 deliver political unity there, for utterly failing on that point. I'm
 wondering what your reaction is to Senator Levin's comment, and whether you
 think Maliki has lost credibility.
     And if I may, President Calderon --
 
     MODERATOR:  I just ask that you limit yourself to one question, please.
     Q I'm just wondering the assessment of the damage in your country, the
 hurricane damage.
     PRESIDENT BUSH: The way I view Iraqis from the security perspective and
 a political perspective. I made a decision to send more troops into Iraq to
 provide enough security for reconciliation to have the time to take place.
 It appears to me -- and I certainly don't want to prejudge General David
 Petraeus's report back home -- but there is some progress being made. In
 other words, one aspect of my decision is working.
     There are two types of political reconciliation that can take place in
 a new democracy: One is from the top down, and one is from the bottom up.
 Clearly, the Iraqi government has got to do more through its parliament to
 help heal the wounds of years -- having lived years under a tyrant. It's
 not easy to go from a tyrannical society where the tyrant brutalized his
 people and created deep suspicions into one in which people are willing to
 work more closely together.
     The Iraqi people made a great step toward reconciliation when they
 passed the most modern constitution in the Middle East, and now their
 government has got to perform. And I think there's a certain level of
 frustration with the leadership in general, inability to work -- to come to
 get, for example, an oil revenue law passed or provincial elections.
     On the other hand, I do want to point out that the Iraqi parliament has
 met and passed 60 different pieces of legislation. They do have a budgeting
 process that is in the process of distributing a significant amount of
 money from the central government to the provincial governments, and the
 money they're distributing is oil revenues. So there may not be an oil
 revenue distribution law, but there's oil revenues being distributed.
     There's bottom-up reconciliation taking place. It's noticeable and
 tangible and real, where people at the grassroots level are sick and tired
 of the violence, sick and tired of the radicalism, and they want -- and
 they want a better life. And they're beginning to reject the extremists
 that have the desire to have a safe haven, for example, from which to
 launch further attacks on America. In other words, there's a process taking
 place. And the fundamental question is, will the government respond to the
 demands of the people? And if the government doesn't demand -- respond to
 the demands of the people, they will replace the government. That's up to
 the Iraqis to make that decision, not American politicians. The Iraqis will
 decide. They have decided they want a constitution, they have elected
 members to their parliament, and they will make the decisions, just like
 democracies do.
     And the question that we have to face in America is, is it worth it?
 Does it matter whether or not this young democracy survives? Is it in our
 national interests that this difficult experiment with democracy in the
 Middle East work? And I've come to the conclusion that it is. It's in our
 interests, because a failed Iraq could easily yield a safe haven from which
 the extremists and radicals who once attacked us could attack us again. A
 failed Iraq would become a recruiting tool for the very same people that
 still want to attack America. And so it's in our interests.
     I told you the other day at a press conference -- I don't know if you
 were there or not -- but if you don't believe it's in American interests to
 be there, you won't find any political reconciliation that is -- that is
 worth defending. If you do think it's in our interests, our security
 interests, then you'll be able to see political reconciliation taking
 place, some at the top and some at the bottom.
     Now, Ambassador Crocker and General Petraeus will be coming back to
 brief the Congress in about a month's time, and I'm looking forward to
 hearing their briefing. And I would hope that members of Congress from both
 political parties listen very carefully to the report they bring back, as
 we all make decisions about what's best for our national security in
 regards to this one theater in the war against the extremists and radicals.
     PRESIDENT CALDERON: (As translated.) What I can tell you, as you are
 well aware, Hurricane Dean touched down in Mexico north of Chetumal, which
 is the state of Quintana Roo, which is on the borders with Belize, with
 winds of 250 and gusts of winds between 350 k. It was a category 5
 hurricane; that is the most dangerous. And the initial reports I have, the
 most important, is until today, but I've not discarded it, but there has
 been no loss of human life. We still have to know what happened in the most
 isolated communities in that area.
     Our authorities are all over that area, the civil protection area.
 People are there who are experts in dealing with hurricane matters. There
 was a power outage to Chetumal, but we have checked with the energy
 authorities at the federal level that the power outage will be repaired in
 the coming hours, and possibly it is.
     The hurricane, fortunately, did not go through the main tourist areas
 -- Cancun, Riviera Maya. And the daily routine activities in those cities
 are being reestablished. And they had major flooding or incoming tidal
 waves, shall we say. But everything has recovered.
     I went over the poor Mayan areas, and I have a great deal of concern
 for the housing and the lack of services in that general area for the
 indigenous people there. And that will be the main area of concern for us
 and activities.
     It is now going to Campeche, and we have other concerns, insofar as
 that is concerned. We have logistical support of the resistance or the
 maintenance of electrical lines that provide energy throughout the Yucatan
 Peninsula. We have -- in Merida, we have hydroelectric plants that can come
 in on an emergency.
     The layout of the Campeche state, which is a very low level, it is
 almost at sea level, and there could be a wave increase in height in the
 tide that may bring about some flooding and might create more difficulties
 that will be more difficult to resolve.
     We are then awaiting that Hurricane Dean will enter the Campeche area,
 where the main oil production occurs in Mexico. We have ordered the
 suspension of oil production. All 20,000 workers have been taken away from
 the platforms, and there's about two and a half million oil barrels that
 have been lost until now. But we have been able to save lives, and later
 again Hurricane Dean will go into Veracruz, and this will create different
 problems to those of the Yucatan Peninsula. That is, the increase of the
 tidal bore up the rivers, and other spaces to the north of Veracruz.
 Fortunately Hurricane Dean was a category 5 but is now a category 3, and is
 about to drop into category 2. Our fear is that it will regain strength
 once it enters the Gulf of Mexico after Campeche.
     But we are ready. The teams are ready, the hydroelectric power is being
 restored, and there has not been major material damage in the major
 touristic areas that have been hit by other hurricanes. That is what I know
 today.
     Q President Bush and Mr. Harper, we know the differences between the
 two countries insofar as the Northwest Passage is concerned. We heard the
 former ambassador, Paul Cellucci, that it would be in the best interests of
 security for the United States to recognize this passage as a Canadian
 waterway. So we'd like to hear your comments, from both of you. Failing
 which there is not a way -- if we could hear to what extent you would be
 willing to consider the Northwest Passage to become an international
 waterway.
     PRIME MINISTER HARPER: (As translated.) I shall reply, to start off
 with. I did hear the comments of the former Ambassador Paul Cellucci. We
 also know that there are certain differences of opinion vis-a-vis this
 passage between our two nations. But quite honestly, Canada's position is
 that we intend to strengthen our sovereignty in the Arctic area, not only
 military, but economic, social, environmental and others.
     The former agreements of President Reagan and Prime Minister Mulroney
 in the '80s, Canada and the United States did resolve their differences in
 this area.
     (Speaks in English.) -- the statement by former Ambassador Cellucci.
 Canada, as you know, is fully committed to strengthening its Arctic
 sovereignty on every level, not just military, but economic, society,
 environmental, any other method, any other means.
     Canada and the U.S. do have differences on certain aspects of the
 Northwest Passage. At the same time, since the agreements of Prime Minister
 Mulroney and former President Reagan in the late 1980s, Canada and the
 United States have been able to manage these differences, and we think
 we'll be able to continue to do that.
     PRESIDENT BUSH: Yes, we'll manage the differences -- because there are
 differences on the Northwest Passage. We believe it's an international
 passageway. Having said that, the United States does not question Canadian
 sovereignty over its Arctic islands, and the United States supports
 Canadian investments that have been made to exercise its sovereignty.
     Q (As translated.) Good afternoon. This question is to the three
 leaders. The stock markets have gone through a severe crisis in recent
 weeks. How close are we to a stock exchange crash, and what measures have
 you taken so that it does not affect the real economy?
     When you will be presenting your first report, there's an opposition
 party that wants to prevent this -- what is the outlook in your view? And
 do you believe that the opposition will accept your invitation for a
 dialogue?
     PRESIDENT CALDERON: (As translated.) Well, to answer the first
 question, the financial problem, which is quite delicate in several
 markets. What I can tell you in relation to the case of Mexico,
 fortunately, our financial system has been solid enough to resist these
 critical times. I know that many central banks in several parts of the
 world, the European Union, the Federal Reserve in the U.S., and other
 central banks, have applied considerable resources in order to bring
 liquidity to their financial and banking systems.
     Now, fortunately, in the case of Mexico, this has not been necessary.
 The financial system and the banking system is very solid. It took a lot of
 work, a lot of money to have such a solid system that would resist
 situations like this, but fortunately, it has not required the support of
 liquidity from the Central Bank of Mexico.
     Currently, the Mexican stock exchange has adjusted fixed income values.
 This is the case around the world. However, the Mexican stock exchange was
 one of the five that actually had an increase in its value throughout the
 world last year, over 50 percent. And obviously the reduction that we're
 seeing is somehow or another a form of a correction which will actually
 improve the health of the financial markets in Mexico.
     Could it have an impact in the real economy? Well, that depends on the
 scope of the situation, how it affects the markets, particularly the North
 American markets, which affects us most. My belief is that the situation is
 beginning to stabilize, and it will depend on the impact that it might have
 on the growth of the U.S., which, as you know, Mexico depends on this
 growth, on the U.S. growth.
     Now, in relation to the second subject, the second issue, I have
 invited legislators. I'm a democrat that believes in the basic idea -- that
 believes in constructive dialogue, and this is what I'm seeking in
 Congress, constructive dialogue. Unfortunately, I still haven't received a
 positive answer in relation to this invitation, but I believe, I trust that
 in the future there will be greater willingness to talk about issues of
 concern for all Mexicans.
     I know it's another system, Canada is, but Prime Minister Harper has to
 talk to his Parliament just about every day, every week. And I think -- I
 would say I would very much like to have an institutional way in Mexico so
 that we're able to work and to talk about what we agree with and what we
 don't agree with in our country. I'll be willing to talk to anybody that
 wants to talk to me, particularly within Congress.
     Now, in relation to the attitude of the PRD, or other members of that
 party, I respect them and, of course, I appeal to the sense of
 responsibility toward the country. And I hope that maturity will prevail,
 and common sense, too. So the only thing that will be lost with this is
 that anybody that breaks the basic laws of our institutional life -- let's
 say that citizens know very well and recognize the maturity and the
 responsibility of political parties and the people of our country are able
 to punish these attitudes.
     PRIME MINISTER HARPER: (As translated.) -- monetary and financial
 systems that monitor it are following it closely. But naturally, there are
 certain differences in their assets and liabilities, and some of the major
 corporations will have drops in their stocks. That is the normal course.
 But I can assure you that the capital situation of our major corporations,
 our financial institutions, of our individual persons are very strong.
     (Speaks in English.) Our economic and financial institutions that are
 responsible for watching these markets are monitoring them closely. At the
 same time, just to remind people, it's normal for the price of assets of
 various securities or companies or whatever to go up and down in the
 marketplace. It's not unusual. I can assure you that the position of the
 Canadian financial sector, in particular our banks, Canadian companies in
 general, and the household sector, our capital positions are very strong.
     PRESIDENT BUSH: The fundamentals of the U.S. economy are strong:
 Inflation is down, interest rates are low, the employment picture is
 strong, exports are up. We grew at over 3 percent in the second quarter.
 The fundamental question is, is there enough liquidity in our system as
 people readjust risk? And the answer is, yes, there is.
     Q Thank you. As you three leaders meet here, there are a growing number
 of people in each of your countries who have expressed concern about the
 Security and Prosperity Partnership. This is addressed to all three of you.
 Can you say today that this is not a prelude to a North American union,
 similar to a European Union? Are there plans to build some kind of
 superhighway connecting all three countries? And do you believe all of
 these theories about a possible erosion of national identity stem from a
 lack of transparency from this partnership?
     PRIME MINISTER HARPER: Well, let me begin. And I guess I read some
 things from my opposition in Canada -- I'm not sure these are generally
 expressed concerns, but a couple of my opposition leaders have speculated
 on massive water diversions and superhighways to the continent -- maybe
 interplanetary, I'm not sure, as well. (Laughter.) I even -- there were
 reports of a former Prime Minister lurking in the hallways -- I have yet to
 see him. (Laughter.)
     Look, we have an enormous trading commercial relationship. It's
 important that the leaders of that trading relationship get together
 periodically, have discussions, just as it's important at every level --
 ministerial level, official level -- that they're getting together and
 talking and making sure they're working out problems.
     You know, we had some business leaders in front of us today; one in
 particular said, you know, the rules for jelly beans -- he manufactures
 jelly beans -- the rules for jelly bean contents are different in Canada
 and the United States; they have to maintain two separate inventories. Is
 the sovereignty of Canada going to fall apart if we standardize the jelly
 bean? I don't think so. Maybe Mr. Dion thinks so, but I don't think so.
     So these are pragmatic, practical discussions. In fact, it was my
 predecessor in the Liberal Party who initiated them. And ultimately, of
 course, for the decisions, we're responsible to our respective populations.
 We're a democratic system and, as President Calderon mentioned, I have to
 listen to that practical input every single day in parliament.
     PRESIDENT CALDERON: (As translated.) Well, in fact, I'll be happy with
 one step in Mexicali and one in Tijuana. In actual fact, there are several
 myths about this meeting, some more jovial, funnier than others. What we
 tried to do is simply to meet, talk about our common problems and see what
 we can do in practical terms in order to improve the lives of our people.
 Whether it's to standardize the parameters for chocolates or medicines, I
 think these are common-sense things, and moreover, I think -- I'll tell you
 this very clearly -- I think that as a region, we are losing
 competitiveness in comparison with other regions in the world.
     And it's not a question of customs unions, let alone having an
 integration that would actually encroach on the sovereignty and culture and
 resources of each country. We simply have to take advantage of this
 opportunity of being neighbors and allies in order to generate prosperity
 and security for our people. That is the purpose of these meetings.
     Now, let me tell you, at times I would even like to work faster, review
 more issues, but we have to be very patient. And something that we did talk
 about also, which is part of my responsibility, or our responsibilities as
 leaders, is to talk to the people and tell them why it's important to have
 better trading rules, why it's important not to have so many barriers
 between ourselves, why it's important to resolve issues such as
 immigration, investment, because that could actually improve the quality of
 life for our people. It could mean the Mexican consumers could have better
 products, Canadian products, U.S. products and -- well, Mexican products
 also -- because there would be more investment in our country, which
 requires thousands and thousands of jobs in order to resolve the problems
 of the people. And when that happens, when there's investment -- and
 there's only investment when there is competitiveness. And we do have a way
 to go in that regard.
     PRESIDENT BUSH: We represent three great nations. We each respect each
 other's sovereignty. You know, there are some who would like to frighten
 our fellow citizens into believing that relations between us are harmful
 for our respective peoples. I just believe they're wrong. I believe it's in
 our interest to trade; I believe it's in our interest to dialogue; I
 believe it's in our interest to work out common problems for the good of
 our people.
     And I'm amused by some of the speculation, some of the old -- you can
 call them political scare tactics. If you've been in politics as long as I
 have, you get used to that kind of technique where you lay out a conspiracy
 and then force people to try to prove it doesn't exist. That's just the way
 some people operate. I'm here representing my nation. I feel strongly that
 the United States is a force for good, and I feel strongly that by working
 with our neighbors we can a stronger force for good.
     So I appreciate that question. I'm amused by the difference between
 what actually takes place in the meetings and what some are trying to say
 takes place. It's quite comical, actually, when you realize the difference
 between reality and what some people are talking on TV about.
     PRIME MINISTER HARPER: (As translated.) Might I add, in French, I did
 not know that there were these major plots that were mentioned by the head
 of the opposition, Mr. Martin, a Liberal prime minister, who initiated
 these discussions, I believe, for Mr. Dion. It is a rather regressive step
 backwards to this whole question of our NAFTA discussions and SPP.
     Q My question is for President Bush. Mr. President, it's become
 increasingly likely that Canada will withdraw from its current combat role
 in southern Afghanistan in February of 2009. Many Canadians, including
 politicians, of different political stripes have suggested that Canada's
 military has done its job in the country, that it's played its part, and it
 would be time to go home then. I'd like to ask you if you believe that
 Canada has done its job and has fulfilled its duties.
     PRESIDENT BUSH: I believe Canada is doing a fabulous job in
 Afghanistan, and I thank the people of Canada, but more importantly, the
 people of Afghanistan thank the people of Canada.
     Canadian -- the Canadian people sent some of your finest into harm's
 way to enable a young democracy to not only survive, but thrive. And it's
 been an important contribution in this global struggle against extremists.
 We're in an ideological struggle against people who use murder and death to
 achieve political objectives, and the fundamental question is, will free
 nations help young democracies survive in the face of this threat? And
 Canada has performed brilliantly. And I thank the mothers and fathers, or
 sons and daughters of those who lost their life in this -- for the sake of
 freedom and peace for the ultimate sacrifice they paid.
     Secondly, the Canadian contribution is more than just combat. The
 Canadian contribution is to help build institutions for a democracy to
 survive. So the contribution has been vast and it's been robust. And this
 government, along with its parliament, will make decisions what's best for
 the Canadian people and the people of Afghanistan.
     The United States is firmly committed to Afghanistan. We view this as a
 part of the war against the extremists and radicals. We view this as a
 significant portion of the ideological struggle, and we believe that when
 democracy prevails in Afghanistan, it will be a major blow toward those who
 want to impose a totalitarian view upon others.
     We believe, for example, it's important for Afghan girls to get a good
 education; I know the Canadian people feel the same way. We believe that
 it's important for women to have rights and to serve in the parliament. We
 believe peace is achieved when forms of government give people an
 opportunity to express themselves in a peaceful way in society. That's what
 we believe. And one reason we have that strong belief is we believe in the
 universality of liberty. We don't believe freedom is just confined to our
 neighborhood; we believe freedom is universal in its application. That's
 what we believe. We believe people want to be free, and if given a chance,
 they will exercise what is necessary to be free, and that freedom yields
 peace.
     I'm giving a speech tomorrow where I'm going to talk about our
 engagement in Asia and how Asia has been transformed because of liberty. A
 place where Canadians and U.S. soldiers died in large numbers is now a
 place of peace and prosperity, where governments evolve in their own --
 representing their own traditions and history, but nevertheless evolved in
 a way with liberty as its basis.
     And the question we're all confronted with, who live in comfortable
 societies, is it worth it for our own security to help others realize the
 blessings of freedom? And my decision is, absolutely, it is. I think it's
 the calling of the 21st century. I think it's the calling of history. And I
 appreciate the strong commitment that this government and the Canadian
 people have made toward writing the first chapter of what will be laying
 the foundation of peace throughout the 21st century.
     PRIME MINISTER HARPER: (As translated.) Might I say that our troops are
 there. Parliament will make its own decision on the extension of this
 mission. But at the same time, you, the Canadians, can be extremely proud
 of the work done by our troops, our soldiers, our diplomats, our agents
 that are there working to develop the country, working for one of the
 peoples that are the poorest in the world. In Kandahar, we have given the
 possibility to men, women and children to have some freedom and some safety
 and security that we have here in Canada.
     I note the passing away -- the dying of the soldier Longtin. And his
 brethren, his comrades, are there to uphold those same values, and carry on
 -- risk life to help their brothers and sisters in countries abroad.
     (Speaks in English.) To repeat that, I think we can all be very proud
 of the work that Canadian troops are doing in Afghanistan. Parliament will
 make its decision in due course whether it wants to prolong the mission.
 But I think our difference there -- our position there, our presence there
 has made a real difference in giving just a tiny bit of freedom, the
 opportunity and the security that we have as Canadians, that we take for
 granted as Canadians.
     I note the death, obviously, of a Canadian soldier -- Longtin I think
 was the name. We are very fortunate we have a volunteer army, very
 fortunate to have men and women who put on the uniform, willing to defend
 our values, and also improve -- improve the lives of their fellow human
 beings and do so at tremendous personal risk for themselves, and I think we
 should all appreciate that.
     Q Good afternoon, President Bush and Prime Minister. And I thought that
 this summit would be the -- actually Plan Mexico would come out of this,
 the combination of three governments to combat the effects of drug
 trafficking. What is the obstacle? What is causing the delay? Why don't the
 societies of each country know what this plan is about? And can you
 actually confirm the support of the United States to Mexico? Apparently it
 will increase tenfold, and the levels will be similar to Colombia. We hear
 very often the United States wants to take part in this situation against
 drugs, this war on drugs, and we see it very clearly in Mexico. Now, what
 is it all about? Could you tell us?
     PRESIDENT BUSH: Man! Hombre! (Laughter.) We discussed a common strategy
 to deal with a common problem, and that is narco-trafficking and violence
 on our border. First, let me say that in order to develop an effective
 common strategy there needs to be serious consultations between our
 respective governments. It's one thing to say, we're interested in working
 together; it's another thing to develop a package on both sides of the
 border that will be effective in dealing with the problem. That's what our
 people expect us to do. They expect us to see a problem and to develop an
 effective strategy to deal with that problem.
     President Calderon and I met in Mexico, and we had a serious discussion
 to get this initiative on the table. This is an interim meeting, a meeting
 for us to make sure that the strategy that's being developed is -- will be
 effective. So we reviewed where we are in the process.
     The United States is committed to this joint strategy to deal with a
 joint problem. I would not be committed to dealing with this if I wasn't
 convinced that President Calderon had the will and the desire to protect
 his people from narco-traffickers. He has shown great leadership and great
 strength of character, which gives me good confidence that the plan we'll
 develop will be effective. And the fundamental question is, what can we do
 together to make sure that the common strategy works? And that's where we
 are in the discussions right now.
     There's all kinds of speculation about the size of the package, this,
 that and the other. All I can tell you is the package, when it's developed,
 will be robust enough to achieve a common objective, which is less violence
 on both sides of the border, and to deal with narco-trafficking. And we
 both have responsibilities. And that's what the package is entailed to
 develop. It's to develop how do we share our joint responsibilities.
     It's in our interests that this program go forward. You mentioned Plan
 Colombia-- this is not like Plan Colombia. This is different from Plan
 Colombia. This is a plan that says we've got an issue on our own border. We
 share a border and, therefore, it's a joint program that will mean -- that
 won't mean U.S. armed presence in your country. Mexico is plenty capable of
 handling the problem. And the question is, is there any way for us to help
 strengthen the effort? And so that's what we're studying.
     And I can't give you a definitive moment when the plan will be ready,
 but we're working hard to get a plan ready. And it's a plan that, once it's
 proposed and out there, I strongly urge the United States Congress to
 support. It's in our interests, it's in the U.S. interests that we get this
 issue solved.
     PRESIDENT CALDERON: (As translated.) Thank you, President Bush, for
 your comments, and also for your question, because this allows us to
 emphasize the fact that -- well, the President has already said it's a
 common strategy to combat, in a coordinated way, a common problem. Drug
 trafficking and violence that's associated to drug trafficking, which is
 particularly evidenced on the border between the U.S. and Mexico, cannot be
 dealt with in an isolated way. It has to be confronted by, dealt with by
 the people and by the governments that are directly affected by this
 scourge. And it requires a variety, multiplicity of actions carried out by
 society, by governments; in other words, enforcement activities against
 criminals, preventive activities, protective activities, prevention and
 treatment of addictions with the young.
     Now, I agree with President Bush, it's very important to reduce --
 well, to have clear policies to reduce the consumption patterns in terms of
 drugs, including Mexico, because this is a main cause of the problem that
 we're facing.
     Now, last week, for example, last week three federal policemen were
 murdered in Mexico-- Mexican policemen, that is -- and they were tortured
 in a very cowardly way. And those Mexican policemen fully committed to the
 government to free the young Mexicans from drugs and to free Mexican
 society from slavery on the part of organized crime based on money and
 technology. And I don't want any -- not one single Mexican policeman to
 have a logistical disadvantage when facing these criminals. I don't want my
 government to be responsible for any omission, any legal omission within a
 legal framework that would have been directed towards defeating these
 criminals.
     So this is a common strategy, because it means that the U.S. will do
 its part and Mexico will do its part. Now, what do we want the U.S. to do?
 To carry out -- have greater surveillance along the border. We are seeing
 high- powered weapons into Mexico, and we know that we can do much more
 than we're doing at this point in time. I know that drugs go from Mexico to
 the U.S. Both of us have to agree so that there is surveillance, efficient
 surveillance, that is, on both sides of the border. We are facing mafias
 that are working on both sides of the border. That is quite clear to us.
 And I think that we will not be acting in an efficient way as long as they
 have a coordinated strategy and we don't. In other words, they're
 coordinated on both sides of the border; we are not.
     So I would like to introduce into the -- well, we have to be respectful
 of our legislation, our respective legislation. I would want to create a
 strategy in order to defeat this scourge. And that requires a variety of
 instruments, strategies, exchange of intelligence, exchange of technology.
 It also means we have to keep in mind issues of sovereignty. I told
 President Bush, though, we did not want to have U.S. soldiers working in
 our country, as has happened in other countries. I know that that's
 typical, of course. But we've said this very clearly, we put forth this
 very clearly, and in the framework of our own legislations, we will find a
 way out.
     And I would also wonder what the men and women are thinking, those who
 are suffering from crime, how scared are they, what's the degree of their
 fear that has led these groups to be so powerful, to grow so much and
 they've essentially taken power in their area of operation. We have
 developed an aggressive policy to combat organized crime, and I haven't
 hesitated to use our forces to recover the areas. We've taken about 10,000
 drug traffickers to jail, many weapons, 50-millimeter canons, grenades
 capable of bringing down aircraft.
     And I think -- so I cannot send the Mexican policemen to combat this
 situation with their hands tied. So I have to answer to Mexican people in
 order to preserve their security, and I will do so without abusing human
 rights and without distorting Mexican legislation; I will respect Mexican
 legislation fully. But I am calling upon my neighbor in order to act in a
 coordinated way, because it's a situation we both have to face. It's a
 problem that affects two countries, and only together will we be able to
 solve it.
     There are several causes; it involves several joint responsibilities.
 And the action, therefore, has to be shared, within the legal framework.
 What's the scope of the strategy? I cannot tell you now, we cannot tell you
 now. We're just exchanging assessments, needs, assessing the situation and
 making it clear what the rules are for each country.
     We will have a strategy -- I think it's possible, but we will not be
 able to come up with it until we finish our discussions and negotiations,
 which, by nature, are very complex. But in the end, that is what we're
 trying to combat, and it's a problem that's affecting Mexican citizens, as
 well as U.S. nationals.
     PRIME MINISTER HARPER: (As translated.) This is an example. We are all
 sovereign nations, that is quite true. But we are not isolated according to
 our own sovereignty. We have shared problems -- for example, drug
 trafficking. This is a good example. It begins in a country in the Americas
 or in the Caribbean, but the consequences are seen in the streets in
 Canada. And we have to discuss these problems. We have to compare our
 strategies, and sometimes we have to work hand in hand.
     (In English.) Once again, this is a perfect example of why we meet.
 We're sovereign countries, but problems are not -- problems don't limit
 themselves to the boundaries of our countries. Drug trafficking is a
 perfect example. These problems may originate in some of the countries of
 Latin America or the Caribbean, but the problems are felt on the streets
 and in the communities of Canada. And that's why we meet to discuss, that's
 why we meet to compare strategies, that's why we, from time to time, have
 to engage in shared action.
     Let me just say one other thing, if I can, about the drug trade,
 because indirect reference was made to Colombia. Canada has undertaken
 negotiations of a trade agreement with Colombia. We have a government in
 Colombia that wants to share in the benefits of free and open markets. We
 don't need to have a trade agreement to have a drug trade with Colombia.
 The drug traffickers aren't going to wait for our parliaments or our
 congresses to pass a trade agreement in order to have a drug trade. But if
 we want to have other opportunities for the people of Colombia, and mutual
 development and shared prosperity, we've got to move forward on these kinds
 of initiatives. And that's why the government of Canada is committed to
 working with Colombia and getting a trade deal.
     MODERATOR: Thank you very much. This brings an end to the press
 conference.
                  END             1:04 P.M. EDT
 
 

SOURCE White House Press Office