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President Vladimir Putin: Good day, ladies and gentlemen.

I am very happy to receive our respected guest to Moscow once more, the President of the Arab Republic of Egypt, Hosni Mubarak.

We see this visit as an important step in bilateral relations, which have a rich history, and, I am sure, a very good future. I want to stress – we had a very thorough and open discussion of interested partners and friends. On the whole, I must say that the Egyptian President has come to Moscow at a very necessary time. I want to thank him for this, because we know which events are currently taking place in the world, and consultations with one of the key countries in the region are extremely important for us.

At the meeting, it was confirmed once more that our countries have a common view on key international problems. We talked about creating a just world order, finding answers to global threats, and joint resistance to terrorism. The last topic, of course, was one of the most important on our agenda. Serious attention was given to the situation in the Middle East, including perspectives for establishing long-term and universal peace in the region. It was noted that one of the indispensable conditions for achieving this goal of regulation is realizing the according resolutions of the UN Security Council, and also the Madrid principles. Taking into account Egypt’s important role in Middle East affairs, we discussed possible steps in solving the Palestine-Israeli conflict. It is our common opinion that the path to this is a return to fulfilment of the “Road Map” statutes, developed by the ‘Quartet,’ and passed by all interested parties. We also talked about the necessity of improving the situation on the Syrian and Lebanese roads. And, of course, we discussed the current situation in Iraq.

Russia and Egypt are concerned by the dramatic events taking place there, and are in favour of restoring Iraq’s sovereignty as soon as possible, and maintaining its territorial integrity. We believe it is necessary to increase the role of the international community – and the UN in particular – in processes of political and socio-economic revival of this country. To achieve these goals, we believe it is advisable to create an international conference. Its participants should be the representatives of the Iraqi people, Iraq’s neighbouring countries, members of the UN Security Council, and other nations. The key task today is to create conditions for stable and socio-economic development of the entire Middle East. At the same time, changes should be initiated above all within the region, and should not aggravate the situation, but rather help the regulation of crisis situations, stability and economic progress.

In discussing a series of bilateral issues, we gave particular attention to trade and economic ties. We talked about contacts between business representatives, about investment projects and cooperation ties. I can name specific spheres of our interaction. We believe that promising spheres are energy, aviation construction and space.

And in conclusion, I want to stress that Russia and Egypt have a large, sound potential, and the strong will to develop these relations. I want to thank the Egyptian president for the atmosphere that we had today in discussing the topics I have mentioned, for the trusting nature and open and frank discussion of all these issues.

Hosni Mubarak: I am very happy about the meeting today with my dear friend, Mr Putin, and the positive atmosphere of our talks. We discussed the situation in the world as a whole, and the efforts that are being directed to regulating the Arab-Israeli conflict. On my part, I confirmed the Arab countries’ adherence to the peaceful initiative that was mentioned at the Beirut summit in 2002, and which is the basis for regulation today. This initiative was confirmed once more at the last Arab summit, where all Arab countries confirmed their intentions to work on realizing this initiative.

As for the Palestine issue, I expressed our gratitude to President Putin, and gave a high assessment of the role that Russia places in the framework of the international “Quartet”. We are unanimous that realizing obligations from both sides – Palestine and Israel – should be mutual, balanced, and be under the control of the mechanism that will be created by the international ‘Quarter.’ The “Road Map” is an ideal option for the international community in the swift creation of a Palestinian state to stop violence from both sides.

On the issue of Iraq, we agree that it is necessary to increase the role of the UN in solving this problem as a whole, and also to transfer power to the Iraq people, which is planned for June 30. This process should take place in such a way that the unity of Iraq’s diversity of ethnic groups and religions is preserved. Iraq’s sovereignty should be guaranteed, as should its regional security. The process of transfer of power must not under any circumstances be fictitious. It should be real. And the Iraq people should have the opportunity to build institutions of their nation independently, without interference from the outside. All foreign forces must be removed from Iraqi soil. President Putin and I hope that in the resolution project that will be presented to the UN Security Council, these principles will be reflected. It is very important that this resolution does not legalise the state of affairs that we can see in Iraq at the moment, and which is incompatible with the sovereignty of this country.

We also discussed the problem of fighting terrorism, and agreed on active joint work in this direction. We agreed that it is necessary to solve political problems which cause people to have feelings of despair and hopelessness, because these feelings are in fact the hidden reason for terrorism. We also talked about the necessity to increase international coordination in the war on terrorism with the help of international conferences held under the aegis of the UN. We also agreed on the necessity of increasing international efforts on preventing the proliferation of weapons of mass destruction. Common standards must be developed that guarantee the implementation of all treaties on the non-proliferation of nuclear weapons.

As Russia is an active member of the G8, President Putin and I also discussed initiatives on reforms in Arab countries, which will be put forward at the upcoming summit. We agree that these reforms must come from the Arab countries themselves, and that the programme for their realization must be founded on the desire of each country, and correspond to each country’s special features – above all, religious, national and cultural. These programmes of reform should be carried out on the basis of the Arab initiative, and President Putin and I discussed the statements from the last Arab summit on programmes of development and modernization of Arab society. I stressed that the roots of solutions to the political and economic problems which currently exist in the Arab world will increase the chances of these programmes.

We also discussed the support that the G8 can give to the Arab world in realizing programmes for developing reforms. Above all, this concerns economic reforms, as it is these reforms that are important for the development of society.

Of course, we discussed our bilateral relations, which have been developing swiftly in recent years, especially in trade and economic turnover. We agreed that it is necessity to develop these ties, increase mutual investment, and intensify and development cooperation in the areas of industry, energy, tourism, culture, science and technology. We agreed on a number of measures which should bring our relations and cooperation to a higher level so that we can achieve the goals we have set.

I thank you once more, Mr Putin, for your hospitality and your warm welcome. And I would like to repeat the offer I made to you earlier to visit Egypt at any time that is convenient for you. I think that this visit will further strengthen our friendship and the warm relations between our peoples.

Thank you.

Question: Mr President, we know that Egypt is making considerable efforts to revive Palestine-Israeli talks. What stage have Egypt’s efforts reached, and what are the prospects? I have also heard that Egypt refused the invitation to take part in the G8 summit. Is this true, and if so, for what reason?

Hosni Mubarak: As for the refusal of the invitation to take part in the G8 talks, during my last visit to the U.S.A. a month ago, I met with President Bush, and we discussed these issues. I refused this invitation because at this time, a meeting of a group of commission in Africa will be taking place, and I will not have the time to attend the G8 talks. And secondly, as I have already said, I discussed all these issues with the U.S. President.

As for Egypt’s efforts to solve the Palestine-Israeli conflict, we are certain that there are no issues, problems or conflicts which can be solved by force. All conflicts and disagreements end with talks sooner of later. A war may take place, but it should not be the beginning stage for talks. For example, take the development of our relations with Israel: first there was a war, the talks, and on several issues we appealed to an international court. And thus we solved all our issues with Israel. The continuation of the military conflict, the continuation of war will not provide any solution to this conflict. And I would like to say that if Egypt works in this direction, then other interested parties should work to return the parties to the discussion table. Russia, Europe and the U.S.A. should help in this and encourage Israel and Palestine to move from violence to talks.

Question: A question for Mr Putin. Please tell us your assessment of what is happening now in Iraq.

Vladimir Putin: Today, President Mubarak and I gave a great deal of attention to this problem. I can tell you our assessment very briefly. People are dying in Iraq every day, and this cannot but worry people – it worries everyone. And Russia too. The escalation of violence is continuing. And the longer it continues, the more difficult it will be to solve this problem. Therefore, the sooner the Iraqi people get the opportunity to take control of their own destiny, the better. The sooner that Iraq’s sovereignty is restored, the better. The question is how to do this. The U.S.A. recently made another step towards finding a solution – they submitted a new resolution project on Iraq to the UN Security Council. Today I plan to talk by telephone with President Bush, and among other things we will discuss this topic. I hope that the joint work of all members of the UN Security Council will have a positive result. But there is one thing I am absolutely sure of – no one apart from the Iraqis themselves can better control their own destiny and the destiny of their country.

Question: A question for Mr Mubarak on Egyptian aid to the Palestinians if the Israeli troops withdraw from the Gaza strip. Is providing this aid conditioned by measures from Israeli?

Hosni Mubarak: I can’t say that there are any particular conditions. We are prepared to send our specialists so that they help the Palestinians in organizational security issues. First, the Israeli Council of Ministers should pass Sharon’s proposal. And secondly, the security of our people who we send there should be guaranteed. There are of course other aspects, but I am sure that they can all be solved in the course of work. And as for the security of borders, thorough talks need to be held on this issue, and it should be examined from all sides.

Question: A question for Mr Putin about the American resolution on Iraq which is currently being discussed by the Security Council. What is Russia’s attitude to this resolution, and does Russia see this project as a suitable basis for solving the issue of Iraq as a whole?

Vladimir Putin: Our position is that any decisions of international organizations, including the UN, should help the regulation of crises, including the Iraqi crisis. If decisions are only made for the sake of decision-making and do not have affect anything, then these documents only compromise the organisation. And an organization will only be effective if it allows the Iraqi people – and I have already talked about this – to take their own destiny into their own hands, creating mechanisms for restoring real sovereignty. The Russian delegation in the UN will strive to develop this document. As I said, I will talk about this with President Bush, who I believe is taking vigorous steps towards finding a way out of the current situation.