Bush Declares Relations With Germany 'Good'
Friday, February 27, 2004
WASHINGTON — President Bush and German Chancellor Gerhard Schroeder (search) on Friday set aside their differences over Iraq, with the U.S. president proclaiming "relations are good" after a long period of bitterness between the two leaders.
"We have differences - in the past," Bush said as he and Schroeder sat side-by-side in the Oval Office, both men relaxed and smiling and frequently leaning in toward each other as they spoke. "But there's nothing wrong with friends having differences. We're both committed to putting the differences behind us and moving forward."
Likewise, Schroeder declared his first White House visit in two years a success. The two had been at odds over the German leader's fierce opposition to the Iraq war.
"We talked not about the past," Schroeder said. "We both agreed that we have to talk about the present and the future now."
The thaw in relations began last year, as Bush and Schroeder met twice, at the Group of Eight (search) summit and at the U.N. General Assembly.
And, as the focus appeared to be on continuing on that path, neither leader mentioned in their public remarks another brewing dispute: the weak American dollar. Schroeder had planned to warn Bush of the global implications of the dollar's weakness against the euro, Europe's main currency.
The euro has risen by more than 50 percent against the dollar, from a record low of 82 cents nearly four years ago. The euro reached an all-time high of more than $1.29 last week, and it was trading at around $1.25 Thursday.
Bush said the two leaders had also talked about the need to put democratic institutions in place in the Middle East "that survive the whims of men and women."
He didn't offer specifics about what that meant, but repeated his belief that democracy and freedom can help stem terrorism.
"A self-governing Middle East, one based upon freedom and democracy, will make the world more peaceful," Bush said. "It's a legacy we need to work on in order to change the habits of violence and fear and frustration that have spawned terror in the Middle East."
In a speech before the Council on Foreign Relations (search) in Chicago Thursday, Schroeder had warned that world trade could be harmed by further shifts in the exchange rate. "Major imbalances in the global economy and fluctuations in exchange rates give us cause for serious concerns," Schroeder said.
He also called for ending export subsidies "on both sides of the Atlantic," in both Europe and North America. "Germany is prepared to do so," he said.
Before making the trip, Schroeder told the Financial Times that he intended to express his dissatisfaction with current exchange rates and remind Bush that the United States and Europe have a "common responsibility" for the world's economy.
"I would just say that I believe the European Central Bank (search) has recognized that this relationship between the euro and the dollar is not helping the export sector, to put it very mildly," Schroeder said.
Schroeder also said he expects to discuss ways Germany can help in Iraq, but his refusal to send troops there still stands.
"Germany is ready to cooperate, but our readiness to cooperate naturally has limits," Schroeder told NDR radio in Germany before departing for the U.S. visit. "We've got nothing to give away. But we're ready to consider substantial debt relief."
While Germany is providing a significant share of the NATO (search) peacekeeping forces now in Afghanistan, Schroeder remains opposed to sending troops to Iraq. But both leaders signaled Friday that they want to work, regardless, on the country's future.
"There's no question we differed over Iraq. We don't differ on whether Iraq ought to be free and peaceful," Bush said.
Schroeder also planned to meet with Senate leaders before traveling to Jackson, Miss., to open an art exhibit, "The Glory of Baroque Dresden." |
