08/31/2001

Q: Who chose Toledo?

THE PRESIDENT: That's a very good question. I guess we jointly chose it.

MR. FLEISCHER: Yes. There is a growing Hispanic population there, a very large base of Mexicans.

Q: And there is a large Mexican-American community there, right?

MR. FLEISCHER: Correct.

Q: If I could, on the immigration issue, you say you expect to have a series of principles. Do you expect any kind of concrete resolutions toward a specific plan?

THE PRESIDENT: That is going to take time. But every discussion we have, whether it's Vicente Fox or myself or John Ashcroft and Colin Powell and their counterparts, helps forge a better understanding of what the Mexicans expect and what we can do. And so it's going to take a while to develop a specific set of recommendations for Congress to mull over.

Q: Do you hope to come up at the end of it with some sort of guesswork or program, or what's your goal --

THE PRESIDENT: You mean, eventually, down the road?

Q: Yes.

THE PRESIDENT: I do. I hope that there is a way to -- I mean, I'm deadly earnest, very earnest -- "deadly earnest" isn't right -- I'm very earnest, I'm alive and earnest -- (laughter) -- about the need to have a realistic program that understands there are employers in our nation who have got jobs that some who live in America don't want to do and, yet, need the workers. And that we ought to match the willing employer with the willing employee in a fair and balanced way.

And having said all this, it's important for your readers and the American people to know that this administration does not support amnesty. And there is a difference between matching willing employer and willing employee in an amnesty program. I don't support amnesty.

I do support a series of -- I would support legislation that recognizes there are folks in our country that need workers. And we need to match the two.

Q: Would these people be able to apply for citizenship, though, down the road?

THE PRESIDENT: That's part of the issue that we're working out. The question is, will there be, other than hard-earned dollars, will there be other benefits to inure to the worker. And one of the issues we've got to deal with is the fairness issue. And here's the issue, the issue is: should someone who has been waiting in line be supplanted by someone who didn't go through the legal process? And we just have to work through that issue. It's one of the complexities of an immigration issue.

Q: Speaking of benefits, one of the burning issues in Houston and elsewhere in Texas is this ruling by the Attorney General that illegal immigrants cannot get --

THE PRESIDENT: Illegal immigrants?

Q: Yes. Illegal immigrants cannot get hospital benefits, medical benefits. They can't go to the public hospital.

THE PRESIDENT: They can for emergency cases, right? Non-emergency cases --

Q: Non-emergency cases. And the question is, do you think that's fair, and do you think the federal government should step in and change it --

THE PRESIDENT: I think that each state needs to make this decision, take a look at the circumstances and make the decision that reflects the circumstances in the state. I do support, obviously, for an emergency room to take care of people who have got emergency conditions. I mean, it makes no sense to turn away a pregnant woman. It makes no sense to turn away somebody who has been injured. But each state is going to have to make that tough decision.

Q: Well, do you think immigrants then will be flocking to certain states that have these benefits?

THE PRESIDENT: No, I think immigrants come to states where there is work. Look, if I've said it once, I've said it a hundred times: family values don't stop at the Rio Grande. People who are looking to feed their families are going to come to the United States so long as the wage differential is the way it is.

The long-term solution to the immigration pressure is for Mexico to develop a middle class. And the way for Mexico to develop a middle class is through good economic policy. Vicente Fox has got an economic vision that I think is more likely to lead to the development of a middle class than we could have hoped for. He understands capitalism. He understands trade. That's why NAFTA is so important.

In the meantime, however, people will be coming to the United States to feed their families. And so, no, I don't think it's a benefit-driven migration,

I think it's a job-driven migration.

Q: Is the poor economy or the sluggish economy on both sides of the border affecting the ability to maneuver on immigration?

THE PRESIDENT: It could affect -- the slowing down of our economy is going to affect job creation. And I am deeply concerned about working families in America losing work. And I'll talk about that on Labor Day.

This is a slow economy, particularly in the manufacturing sector. And it's going to affect all jobs -- the jobs of people who live in America today and the jobs of people who might be seeking work in America tomorrow.

That's one reason the country should recognize that we've got a pro-growth policy in place. And for the critics of tax relief up here, I want to repeat what I've said before: if your idea of stimulating economic growth is to raise taxes, you've got one, an opponent in the White House and, two, I don't think -- I mean, I think very few economists would recognize raising taxes as the sign of a slowdown makes eminent sense.

Q: I understand this isn't the time for a legislative agenda, but what do you think the minimum is that President Fox has to go home with on immigration?

THE PRESIDENT: Well, I think President Fox -- you should ask him that question. But I do know that he is going to have --

Q: And it's for you, too.

THE PRESIDENT: Well, because my focus is on America and how it works best for America. Listen, I want my friend to have a successful trip, but by virtue of the fact this is the first State Dinner ought to send signals about our unique relationship. Secondly, I think the Mexican populace, just like the American populace, will appreciate the wide range -- the cooperation we've got along a wide range of subjects.

And, thirdly, the fact that the President of Mexico and the President of the United States have had a frank and open discussion about immigration should help President Fox. I mean, that's -- he's got a friend in the White House who is willing to listen to his concerns.

This is an issue that is complicated not only by the relationship between America and Mexico, it's complicated by the fact we've got immigrants from different countries, we've got a Congress that may have a different point of view, and we've got to work through the complexities of the issue. Bennett brought up -- I think it was you, Bennett, that brought up the issue, or somebody brought up, you know, what about the person who has been waiting in line longer than the undocumented. So these are issues we've got to work through.

Q: On trade, NADBank failed to live up to its billing, and is there any kind of reforms that are going to come through on that, and could loans be extended past the border zone?

08/31/2001

THE PRESIDENT: Well, I think what we need to do is to make sure that NADBank is -- you see, NADBank has got a specific charter. And you're right, it's been disappointing. And, by the way, I asked the question at the national security meeting this morning -- does anybody know of any attempt to move NADBank out of San Antonio? (Laughter.) I read the editorial page when I was down there Thursday -- everybody said, what are you talking about? I said, well, that's good news.

Anyway, to me, I think we've got to get NADBank to function the way it was intended to function, and to get it to work right. This is a very important part of border development. And then I think we can work with the Mexicans beyond the initial charter. But first things first. I mean, it doesn't seem to make much sense that if the bank is not functioning now, why give it a broader area in which not to function well, if you know what I mean.

Q: Will an immigration plan expand beyond Mexico?

THE PRESIDENT: Well, it's conceivable that a Mexican immigration plan will affect other countries. In other words, if we treat Mexican immigration as unique, that, in itself, will -- could affect -- I mean, if the policy is done in a particular way it could affect the quotas, for example, for other countries.

But what is important for people to understand -- and I think most Americans do -- is that the relationship between Mexico and the United States, just like the relationship between Canada and the United States, is a unique relationship. It is a different type of immigration in the sense that people can walk, for example, walk into our country.

And, therefore, to me, dealing with Mexico in a realistic and positive way is a positive step toward an immigration policy that is respectful for all. But it is conceivable -- again, conceivable -- that if we deal with Mexico in a unique way, it will affect the levels, for example, of possibilities for other countries.

Q: What kind of a timetable are you on? I mean, a statement of principles, especially if it's the same principles as you outlined during the campaign, doesn't seem to move the ball very far.

THE PRESIDENT: Yes, but it's one thing for me to speak unilaterally; it's another thing for us to work closely with Mexico. I mean, this is a process that's going to take a time to come up with, frankly, a package that will pass the United States Congress.

Q: Next year?

THE PRESIDENT: Well, let me rephrase -- one of the things I've learned, Hutch, is not to put timetables out there. Because guess what usually happens? You never meet them. But as soon as possible, as soon as is realistic. And I can't emphasize to you enough that the complexity of the issue is such that we've got to spend time on it. And we are.

Q: He's expected to deal with the trucking issue. If they tuck a ban on it in the transportation bill, what are you going to do, veto to the whole bill?

THE PRESIDENT: Well, I told them if they bring that bill to me with a ban on it, it's not going to be law.

Q: So you'll veto it?

THE PRESIDENT: That's one way. The most effective way. It is the way.

Q: Are you planning to put more inspectors on the border? That's been one of the concerns.

THE PRESIDENT: Well, one of the issues we'll be willing to work with reluctant members of the House and the Senate on how to make sure that the trucks are safe. That will obviously be working with -- not only, I'll be happy to work with the states, as well as the border.

MR. FLEISCHER: The President's budget actually, transportation bill includes money for more inspectors on the border.

Q: Is there any economic or lengthy plan to offer the Mexican government, or Fox, while he's here? Is there any --

THE PRESIDENT: Well, the best plan we can do for Mexico's economy is to grow our own, since we're such significant partners in trade. And where I've laid out a pro-growth initiative -- and the thing that I will, of course, tell him is that the thing that's likely to cause our economy to continue to sputter is if Congress comes here and over-spends, busts the budget. And it's -- people in Washington need to think about how to grow the economy. And tax relief is part of it, regulatory relief will be part of it; but fiscal responsibility is going to be the big test for the Congress.

The appropriators just can't help themselves sometimes. And, frankly, they're used to an environment in which it was so easy to appropriate, to spend.

And last time, for example, they had -- I used to talk about it on the campaign trail this way: it's like they had a contest, that a person who could put the most money on the table to spend was the one who got to leave town first.

And there was a relationship between the appropriators and the administration that caused the budgets to explode. Well, there's a new way of thinking in town now. And that's not only important for our economy, it's also important for future baselines of the budget to make sure we've got responsible spending down the road.

Q: Back on immigration, is it possible that the enthusiasm for the issue got out in front of the reality of the politics?

THE PRESIDENT: Not at all. I think the complexity of the issue has always been one of the keys to understanding how to make something work. It is a complex issue, Bob. It's an issue that has got a -- and you all have brought up three or four points. One of them is, how does it affect other people. I mean, America is just not a beacon for Mexicans, it's a beacon for people from all around the world.

And how does immigration --- there's the farm worker issue, there's H-1A -- I mean, H-1B, H-2A. There's a lot of issues involved. There's national quotas, there's people waiting in line, there's undocumented aliens. I mean, it is an issue that has been complex from day one. I knew it was complex from day one. My job as the President, one, is to put it on the table, which I have done.

Two, is to deal with Fox in a very straightforward and open way, which I have done. And three, then make the effort to cooperate, to come up with a plan that's acceptable beyond the administration. The plan has to pass Congress.

And we've been listening -- we've started -- we've been listening to the members of the Congress.

Q: What are they telling you?

THE PRESIDENT: They're telling me it's a complex issue, and they want to make sure they understand all the ramifications before they sign on to an agreement.

Q: And they don't like amnesty?

THE PRESIDENT: Some do, some don't. I don't.

Q: What about some sort of earned legalization, is that --

THE PRESIDENT: That's what we call the path to normalcy. And it's a regulization. There's all kind of words they throw around. One of the questions is, is it possible to earn credit toward a green card if you're an undocumented alien? These are all the issues we're wrestling with.

My only point to you is that the more we discuss it, the more complex you'll -- the more you'll understand its complexity.

Q: But are those on the table? If amnesty is off, can you find some sort of halfway --

THE PRESIDENT: Of course, everything is on the table. I'm interested in all ideas that -- we've spent a lot of time on the subject this morning, as a matter of fact. Secretary of State Powell and General Ashcroft came and presented their perspectives on the issue. And it's a -- and I said, look, don't rule anything out except for blanket amnesty. And I'm interested to know what all the different options are.

Q: What about drugs and energy? These are two issues we've not discussed.

THE PRESIDENT: Well, I discussed drugs -- that the Mexicans were

extraditing folks in a more aggressive way than ever before. And that's part of the drug solution. We've got great cooperation on the border. General Ashcroft, at some point in time, might be willing to share, particularly during the meetings, of the cooperative efforts.

08/31/2001

In terms of energy, I've raised that issue with President Fox, and then I raised it with President Fox and Prime Minister Chretien. We are in the process -- and as a matter of fact, when I went to the Energy Department, to deliver my famous anti-vampire speech -- I'm sure you all remembered it; listening to that speech, by the way, with rapt attention, was members from the Mexican and Canadian energy delegations that were here. Evans and Spence Abraham are working with them.

And so we've got a -- we're developing a hemispheric strategy for energy.

The truth of the matter is, we need to find more natural gas. Mexico is a net importer of natural gas from the United States, interestingly enough. Some of the progress made up to date has been -- and this is prior to my arrival, but the development of the international pipelines that we need to continue to make sure we've got enough capacity to move raw product, natural gas, into Mexico, and vice-versa, if and when Mexico is able to get an exploration -- an active exploration -- more exploration program on their natural gas fields.

I told President Fox we'd be more than willing to help work on easing the regulatory burden, to get the electricity interconnects, particularly in the western part of his country. If they desire to build a power plant, we'll work with them to help them export energy into California, that's in need of energy.

And there's a lot of things we can do together.

Q: No big announcements on this trip?

Q: Does your close association with President Fox help you politically in hispanic communities, particularly in Mexican-American communities? In other words, are there --

THE PRESIDENT: No, I think more important -- I mean, I think people appreciate a President who understands Mexico, respects Mexico. I respect the culture. I've worked closely with my friend, President Zedillo, when I was the Governor of Texas. I think people know that I understand the culture, the future and the hopes of the Mexican people.

But more important to the voter is tax relief, jobs, national defense, educating children. Those are the issues that -- I think people appreciate the fact that I've got a sympathy toward Mexico and understand it, but they'll vote for me if I do my job as President.

Q: Can I ask a non-immigration question?

THE PRESIDENT: Yes.

Q: Are you -- how far along are you in deciding who will take John DiIulio's place in the faith-based office?

THE PRESIDENT: We had a discussion about that this morning. First, let me tell you how sorry I am that John is leaving. I fully understand. John cares deeply about his family, and wants to spend more time with his family. And I understand that. He wrote me a very thoughtful letter. I'm going to miss him, because he's a -- he brought a unique perspective. He is a soldier in the army of compassion. He's also got a lot of credibility in the field, because he's written extensively on it.

I have yet to visit with him, personally, about who he recommends. I've heard from others on my staff that he's got some ideas in mind. The answer to your question is, after he leaves, and we're working on it.

Q: On the fall agenda, I'm meeting with Senator Daschle next week, and some people have said you've had a chilly relationship, and that may have hurt the ability to get stuff through the Senate.

THE PRESIDENT: Well, why don't you talk to people who know? I don't think my relationship with him is chilly in the least. I've had a good relationship with him. It's the old, some people say -- I'm catching on to that old political trick -- I mean, press trick, excuse me.

Q: Well, how do you plan to work -- you've had some successes in the Republican-controlled house. How do you plan to work with -- move stuff through the Democratically-controlled Senate?

THE PRESIDENT: How do I plan on moving it?

Q: Your agenda.

THE PRESIDENT: Well, I expect that the leader of the Senate is going to want to show progress toward -- on legislation. And the Senator is in charge of the calendar. And I will work with him, to whatever extent he wants to work with me. But he's got to get appropriations bills passed. I think -- to me, I believe he committed to getting energy legislation out, the faith-based initiative out. Two big bills are in conference, so they've already passed both bodies.

I mean, I think we're going to get a lot done. It's going to be a substantive session. I look forward to working with Senator Daschle. My relationship with Senator Daschle is very cordial.

Q: How important is it to avoid dipping into the Social Security surplus for other --

THE PRESIDENT: Our office of OMB says we're not going to. I believe those numbers. The only time to -- we should dip into Social Security is if there's a severe economic recession, emergency or a war. And I appreciate the fact that the Congress has come to that position, because it helps put a lid on spending.

And as I mentioned to you, it's important for us to keep tight fiscal discipline in the budgetary -- I mean, in the appropriations process, in order for us not to drag the economy.

Q: So you'll stick to that, though, even if the OMB is wrong and --

THE PRESIDENT: Well, there's going to be --

Q: -- the turnaround doesn't come, like they had hoped?

THE PRESIDENT: Well, first of all, the -- yes, what I said is what I believe, and that's important. We're dealing with $2 trillion, and the discussion is $4 billion or $5 billion. That's a lot of money, no question about it. But I'm confident that we won't overspend. And Congress needs to work with us. If they're interested in trimming back, I'll be glad to show them where. It does not start with the defense or education.

Q: Two questions on the state dinner --

MR. FLEISCHER: One last question.

THE PRESIDENT: Let me make sure you understand. We feel there is ample money in the budget -- I mean, ample monies projected to meet our budgets. And that's important for people to know.

Q: You might be right, unless they're wrong about the turnaround starting at the end of this year -- which is looking a little scary.

THE PRESIDENT: Well, Ron, I mean, there is a wide range of assumptions.

My message to the Congress is that the tax cut was the right thing at the right time. The Congress needs to think about how to grow the economy. And we provided the blueprint for a growth agenda, some of which has been passed.

Secondly, the message is, defense and education are important national priorities, and they should give us the appropriations number early so that we know. And they should not use appropriations on defense and education to play games, political games. These issues are too important to withhold at the last to -- to withhold at the last minute, trying to play appropriations games.

Q: Jump on the State Dinner.

Q: Yes, two questions. What's for dinner, and who is the entertainment?

(Laughter.)

THE PRESIDENT: Entertainment is an opera singer named Don Upshaw.

Q: Dawn Upshaw?

Q: No mariachi bands?

THE PRESIDENT: She is a brilliant singer. I actually met her at the Yale graduation. I don't know what we're having for food. Somebody needs to find out. We've got a lot of Texans coming up. The Governor.

Q: The Governor is coming? Tony Garza?

THE PRESIDENT: He'll be there. Phil Gramm, Henry Bonilla, Lance

Armstrong, Anne Armstrong.

Q: Give us some other star power.

THE PRESIDENT: Najera, the power forward for the Dallas Mavericks, who is a Mexican citizen, played at OU. Do you remember the guy who played at OU?

He's now on the Dallas Mavericks.

Q: How about Salma Hayek? She needs to come.

THE PRESIDENT: Who?

Q: Salma Hayek.

Q: She's a beautiful Mexican actress. Ask Tony Garza.

THE PRESIDENT: Is he single? (Laughter.)

Q: I don't know. If you figure it out, you can tell me. (Laughter.)

Q: This will have a lot of Texas flavor to it. Only a guess but, yourself of course? The First Lady?

THE PRESIDENT: Yes. I developed an understanding of Mexico as the Governor of Texas. And plus, when you live in Texas, and grow up in Texas, the Mexican culture is evident, and it's real, and it's a powerful part of our state's culture. And it's an important part of our state's culture.

All right.

Q: Thank you very much.