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pd09ap01 Statement on Senate Action on Federal Budget Legislation...


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Remarks on the United States Navy Aircraft Incident in the South China 
Sea

April 2, 2001

    Late Saturday night in Washington, Sunday morning in China, a United 
States naval maritime patrol aircraft on a routine surveillance mission 
in international airspace over the South China Sea collided with one of 
two Chinese fighters that were shadowing our plane. Both our aircraft 
and a Chinese aircraft were damaged in the collision. Our aircraft made 
an emergency landing at an airfield on China's Hainan Island.
    We have been in contact with the Chinese Government about this 
incident since Saturday night. From our own information, we know that 
the United States naval plane landed safely. Our Embassy in Beijing has 
been told by the Chinese Government that all 24 crewmembers are safe.
    Our priorities are the prompt and safe return of the crew and the 
return of the aircraft without further damaging or tampering. The first 
step should be immediate access by our Embassy personnel to our 
crewmembers. I am troubled by the lack of a timely Chinese response to 
our request for this access. Our Embassy officials are on the ground and 
prepared to visit the crew and aircraft as soon as the Chinese 
Government allows them to do so, and I call on the Chinese Government to 
grant this access promptly.
    Failure of the Chinese Government to react promptly to our request 
is inconsistent with standard diplomatic practice and with the expressed 
desire of both our countries for better relations.
    Finally, we have offered to provide search and rescue assistance to 
help the Chinese Government locate its missing aircraft and pilot. Our 
military stands ready to help.
    Thank you very much.

Note: The President spoke at 11:38 a.m. on the South Grounds at the 
White House.

[[Page 561]]


<DOC>
[Weekly Compilation of Presidential Documents]
 [frwais.access.gpo.gov]
                         

[Page 561-562]
 
Monday, April 9, 2001
 
Volume 37--Number 14
Pages 559-588
 
Week Ending Friday, April 6, 2001
 
Remarks Following Discussions With President Hosni Mubarak of Egypt and 
an Exchange With Reporters

April 2, 2001

    President Bush. I'm going to start off with a statement; the 
President will make a statement. We'll have two questions from the 
American press, two questions from the Egyptian press, and then you'll 
be asked to leave in a prompt fashion. [Laughter]
    Of course, it is my honor to welcome the President of Egypt here to 
the Oval Office. I had the honor of meeting the President a couple of 
years ago. I found him to be an engaging, charming, strong leader then; 
my opinion hasn't changed after our good, frank discussion today.
    We're friends. We will remain friends. And we will work together to 
bring peace to the Middle East, and we'll work together to try to 
convince all parties involved to lay down their arms, so there would be 
less violence. I'm also committed to working with the President on 
relations--economic relations that will be to the advantage of both our 
countries.
    And so it is my high honor to welcome President Mubarak here to the 
Oval Office and to the United States.
    Mr. President.
    President Mubarak. Thank you. I'm so pleased to come here for the 
first time to meet with my friend President Bush in the Oval Office. 
He's a friend. I know him some time ago. And I'm very keen to work with 
him on all issues concerning the Middle East, especially the Middle East 
problem.
    We are working very hard, and we are going to cooperate very hard in 
the direction of peace because our main concern is peace and stability 
in the area of the Middle East, which is in the interest of the United 
States, of Egypt, Jordan, and all countries in the area. We are going to 
do our best; we are going to cooperate with the main players, with the 
United States. And I have great hopes that President Bush will do the 
maximum effort of that so as to reach--lessening the tension and resume 
negotiations, which is vitally important.

U.S. Navy Aircraft Incident

    Q. Mr. President, on China, do you consider the American service 
personnel hostages? And secondly, is it true that the Chinese have 
already boarded our Navy spy plane, and how do you react to that?
    President Bush. My reaction is, is that the Chinese must promptly 
allow us to have contact with the 24 air men and women that are there 
and return our plane to us without any further tampering. I sent a very 
clear message, and I expect them to heed the message.
    Q. Have they boarded the plane, sir?
    President Bush. My message stands for itself.
    Q. Will you be more involved, sir----
    Q. The Middle East situation is deteriorating----
    President Bush. Yes, ma'am.
    Q. Actually, sir, I had another question, altogether, but the point 
is----
    President Bush. Did Gregory [David Gregory, NBC News] steal your 
question? That's very inhospitable of you. [Laughter]

Middle East Peace Process

    Q. The Middle East situation, sir, is deteriorating day by day. The 
press is speculating the American administration is disengaging itself 
from the area. Can the Middle East afford this vacuum by the absence of 
an active American role? And have you formulated a new approach, if any?
    And President Mubarak, please comment afterwards.
    President Bush. Well, we're very engaged in the Middle East and will 
remain so. As a matter of fact, the Secretary of State has been involved 
on the telephone this morning with Prime Minister Sharon. I have had 
numerous telephone conversations with leaders in the Middle East. I'll 
continue to be actively engaged at promoting a peaceful resolution of 
the issue. After all, most of our conversation today was talking about 
how to bring peace in the Middle East.
    I understand that we can facilitate peace. We can't force a peace. 
And we will use our prestige and influence as best we can to facilitate 
a peace. Part of it is to build a strong foundation for peace in the 
Middle East. It's important for us to build strong relationships

[[Page 562]]

with countries such as Egypt and Jordan and other countries in the 
Middle East who have got a stake in peace. But we will remain very 
actively engaged, and hopefully, there will be positive results.
    It is very important for people to realize that the United States 
will not set a timetable that meets our specific needs. The only lasting 
peace is one in which the parties involved come to the table. And the 
role for strong countries like ourselves and Egypt is to encourage, 
first, the violence to end and, secondly, for discussions to begin 
again. And I'm very optimistic and hopeful that we'll be able to achieve 
that.
    Q. Mr. President----
    Q. Mr. President, your comments----
    Q. A comment from President Mubarak----
    President Bush. Hold on. AP man. AP man. Excuse me. Oh, sorry.
    President Mubarak. I think the President told you everything about 
that. He is committed to work for peace. We are not going to impose any 
solution on the parties. We are going to facilitate the situation so 
that they can sit together, negotiate, and we will help them to reach a 
final conclusion for peace, because all of us need stability in the 
area.
    Q. The U.S.-Egypt relation is bigger than just the peace----
    President Bush. Of course.
    Q. Is that true?
    President Bush. Oh, absolutely. The U.S.-Egyptian relation is about 
economic commerce; it's about cultural exchanges. Absolutely. But one of 
the key things is that we can use our historic relationship to work 
together to bring peace in the Middle East. It's an important part of 
our relationship, but not the only important part.

U.S. Navy Aircraft Incident

    Q. Mr. President, do you see this accident as a provocation on the 
part of China or a true accident? And what will it do to U.S.-Chinese 
relationships, especially your decision on selling arms to Taiwan?
    President Bush. Well, I made a very clear statement about how I 
viewed the incident. It is clear that we had a plane flying in 
international--over international waters that was damaged. It landed, 
and we expect there to be contact, as soon as possible, with our 
crewmembers. And we expect that plane to be returned to us.

Note: The President spoke at 12:14 p.m. in the Oval Office at the White 
House. In his remarks, he referred to Prime Minister Ariel Sharon of 
Israel. A tape was not available for verification of the content of 
these remarks.


<DOC>
[Weekly Compilation of Presidential Documents]
 [frwais.access.gpo.gov]
                         

[Page 562-565]
 
Monday, April 9, 2001
 
Volume 37--Number 14
Pages 559-588
 
Week Ending Friday, April 6, 2001
 
Remarks to the National Restaurant Association

April 2, 2001

    Well, Denise, thank you very much for your kind introduction and 
your leadership. I'm honored to be here, and I'm glad you all are here, 
as well. I'm so pleased with the strong support that my budget and tax 
relief plan has received from the restaurant folks all across America. 
It means a lot. A lot of Members of Congress and Members of the United 
States Senate eat in your establishments, so it's a pretty good place to 
start the lobbying process. [Laughter]
    First, I want to describe a little bit about the budget I submitted. 
It's created some heartburn in Washington because the increase in 
discretionary spending wasn't as large as some would like to see it.
    In the past, during the last fiscal year, the last year that 
affected this fiscal year, the discretionary spending in our budget went 
up by 8 percent. Now, that's a lot. It's a lot when you're talking in 
terms of billions of dollars. It's a lot when you're trying to preserve 
money for Social Security. It's a lot when you're worried about the 
state of our economy. It's too much--the increase was way too much. It's 
almost as if there was a bidding contest to determine who got out of 
town first.
    And so, we came to town with a new attitude that said, we can meet 
priorities if we control discretionary spending. We can meet priorities; 
we can pay down debt if we control discretionary spending. We can meet 
priorities, pay down debt, set aside money for contingency, and send 
back money to the people who pay the bills if we control discretionary 
spending.

[[Page 563]]

    And so, I submitted a budget to the United States Congress, which 
passed the House--it's going to be voted on in the Senate--that limits 
discretionary spending to 4 percent. Now, for some who don't pay 
attention to all this process, 4 percent sounds like a little bit. But 
it is--and it is, compared to what happened during the last budget 
negotiations. But I want to remind you, it's greater than the rate of 
inflation. It's greater than maybe some of the pay raises that you're 
giving the folks that work for you. It's a pretty healthy chunk of 
money. It's a big increase.
    Yet, for some, it's not enough in Washington. And what we're trying 
to do is fashion the debate to say that 4 percent is plenty, 
particularly since we strongly believe, and I strongly believe, that we 
need real tax relief. We not only need to have tax relief that gets 
money into people's pockets quickly; we need long-term tax relief that 
will send a signal to the entrepreneurial class of America that tax 
relief is real, it's permanent, you can make your plans based upon a new 
tax system.
    There are some in Washington who would like to see the issue go away 
by saying, ``Here's some immediate money for everybody, and let's hope 
they forget about long-term relief.'' My position is clear: For those 
who want to accelerate tax relief, we're joining right with you. We 
think it's important to have quick injection of cash into our economy. 
But in order to make sure the environment for entrepreneurial growth is 
consistent and strong, we have an opportunity to have long-term tax 
relief.
    And that's what I'd like for you to help me convince Members of 
Congress to listen to. Because you see, the great American experience is 
to own your own business, is to own your own home, is to own something. 
It's that no matter where you're from or who you are or what you're--how 
you're raised, if you have an idea, you can go out and start a 
restaurant. And it's your own.
    And the role of Government has got to try to create an environment 
so that people can--that people feel comfortable about investing. There 
needs to be certainty when it comes to investment. There also needs to 
be recognition of the role small businesses play in our society. The tax 
relief plan I submitted cuts taxes on everybody who pays taxes. It 
affects those at the bottom end of the economic ladder by dropping the 
bottom rate from 15 percent to 10 percent, increasing the child credit 
from $500 to $1,000 per child. But it also drops the top rate from 39.6 
to 33 percent.
    See, I recognize that most small businesses--and there are many 
small mom-and-pop restaurant owners all across America who are not 
incorporated. They're sole proprietorships. They have Subchapter S 
corporations, where they pay--where the tax rate they pay is not the 
corporate tax rate, not the C-rate, but the high individual rates. And 
so by dropping the top rate from 39.6 to 33 percent, we're saying to 
people who started their own business, ``Well, the environment is going 
to be better. You'll have more cash flow so you can reinvest in your 
company. You'll have more cash flow, so you can employ more people.''
    This Congress must hear, loud and clear, the role of small 
businesses in our society when it comes to new job creation; 75 percent 
of the new jobs created in America are created by small-business people. 
And so tax relief is aimed not only at helping people at the bottom end 
of the economic ladder, but the tax relief package also is aimed at 
encouraging and stimulating entrepreneurial growth in America. And 
that's what Congress must hear.
    Now, they'll try to debate the issue all kinds of ways and throw all 
kinds of smokescreens up. But reality is that a real, meaningful tax 
relief plan is good for investment in the private sector and job 
creation.
    One of the most interesting moments of the budget debate came when I 
was in Council Bluffs, Iowa, and a lady stood up and said, now she was a 
proud mom and proud grandmother, and that she had baked cookies for a 
long time in her family. And every time she left a plate of cookies on 
the table, her children, her grandchildren ate them. She's really 
talking about the budget when she talked about that story. [Laughter] 
And so the fundamental question is not only how do we stimulate economic 
growth but what happens to the cash flow if it's not returned back to 
the people or not taken in the first place--let's put it that way.

[[Page 564]]

    And I can tell you what's going to happen to it. It's going to be 
used to increase the size of the Federal Government; that's what's going 
to happen. And so this is not only a debate about how to stimulate 
economic growth; it's a debate about who do you trust with the people's 
money. And it's a fundamental debate, and it's a good debate, and I'm 
glad it's taking place here in Washington.
    See, I would rather trust you with your own money to make the proper 
investment. Once we meet priorities--and, remember, we pay down $2 
trillion of debt in the budget I've submitted; we increase discretionary 

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