MR. RUBIN: Good evening, and welcome to this extremely large room, which is only partially-filled, I note. Let me say that Secretary Albright arrived earlier this evening. She began with a meeting with the King, King Fahd. They met for about a half an hour or so, and then she moved on to meet with Crown Prince Abdullah. They met for about an hour and twenty minutes, in a large group, and then they broke. Then I understand that Crown Prince offered Secretary Albright some dinner, and she accepted that invitation and I expect that meeting to go on for some time. The rest of us came back here and I am here to answer your questions. Let me just make a couple of general points. Secretary Albright and the King and Crown Prince Abdullah discussed the issues you would expect, including the three tracks of the Middle East peace process: the Israeli-Palestinian track, the Israeli-Syrian track, and the Lebanese track. They also discussed the importance of containing the danger posed by Iraq and Saddam Hussein's regime; they also discussed the subject of Iran and its support for terrorism. With those broad descriptions, let me turn to your questions. I can either start with our travelling press corps or the Saudi Press Agency (who is being blocked by the camera person here). So, since we are in Saudi Arabia, let's start with the Saudi Press Agency.

QUESTION: Is there any new American proposal regarding the peace process?

MR. RUBIN: Secretary Albright's trip is designed primarily to assess the state of play between Israel and the Palestinians on the important issues related to achieving a framework agreement by mid February for the permanent status negotiations. Those involve some extraordinarily difficult issues… the question of Jerusalem, borders, water, refugees, and I think Secretary Albright is quite aware of how extraordinarily difficult and often emotional some of those issues are. What she is trying to determine in her meetings tomorrow in Damascus, in Israel and in the Palestinian Authority, is the prospect for achieving agreements in those areas.

Secretary Albright and her team always try to contribute ideas where they think that that can be useful, and I would be surprised if ideas weren't discussed. With respect to the Syrian track, Secretary Albright will be going to Damascus tomorrow; she will have a press conference there and be in a position to talk more about that. We believe that it is important to continue to work in this area and try to find not only a formula to restart the negotiations, but a basis under which, if the negotiations are started, they can quickly come to a successful conclusion. We recognize that those issues of withdrawal, of the character of the peace, of the security arrangements, and of the timing of implementation, are very difficult and will require very tough decisions by both Israel and Syria. And we are determined to keep working the problem so long as we think there is a prospect for success. So, again, Secretary Albright will be going to Damascus to assess that prospect.

With respect to the Palestinian-Israeli track, there is obviously a lot of work to be done. Secretary Albright is quite concerned and disturbed by the current situation, which involves not only a failure to implement and agree on steps for the Sharm el-Sheikh, agreement, which has so far worked so successfully, including the turn over and redeployment of land, the release of prisoners, the tough security cooperation that has been going on, and the opening of a safe passage route, which has progressed quite well to date, is now not moving as far forward as quickly as one would hope. She will obviously also have to deal with the fact that some Palestinian negotiators have indicated that their concern over settlement activity could freeze the permanent status negotiations. This is particularly disturbing, because we don't believe that the permanent status negotiations ought to be required preconditions to continue, and the suggestion that there would be preconditions is disturbing.

With respect to the issue that the Palestinians have raised -- that is, settlement activity -- that is a matter of some concern. We have said for some time that we oppose that activity, especially because it could complicate the environment under which these difficult negotiations have to take place, and also because it could prejudge or predetermine the outcome of these issues that are supposed to be developed and resolved at the negotiating table. So that's a long answer to your question, but I am sure that she will both be trying to ascertain the views of each side in both Damascus and Israel and in Israel and the Palestinian Authority on their concern, their needs, their objectives, as well as, where appropriate, to make suggestions or present ideas.

QUESTION: Inaudible.

MR. RUBIN: They talked about the concern that we have, that the Iranian government has sent out very dangerous signals, not only in publicly opposing the Sharm el-Sheikh agreement but also in supporting and assisting those organizations, terrorist organizations, who are determined to kill the peace process through the support for and conduct of terrorist activities aimed at the peace process. Let me say, Secretary Albright was quite encouraged that both the King and the Crown Prince indicated to her that they believed that there was an historic moment of opportunity in the region right now; that not only the peoples of the region, but also their governments, were ready to move forward in a dramatic way on the peace process. The Crown Prince, in particular, indicated that he very much hoped that the United States, as well as the parties, would seize this opportunity that now exists.

With respect to Iran, specifically, Secretary Albright indicated that she was troubled by these latest developments -- not to mention the longstanding position of Iran on the peace process and support for terrorism -- and I think they both agreed that the peoples of the region and the region as a whole would be better off if these kinds of activities were not supported and did not take place.

QUESTION: As we heard from the situation in Chechnya that it is actually deteriorating and we heard about massacres and atrocities. Did negotiations and talks go over this issue? Thank you.

MR. RUBIN: As of now, when I left, they had not, but I would be surprised if, during the course of the discussions, that issue did not come up. There is a lot more time, I think, for such discussions, and I would be surprised if it did not come up. One other topic that did come up was the Saudi interest in joining the World Trade Organization. Secretary Albright indicated that she hoped that Saudi Arabia was not deterred from their aspiration to join the World Trade Organization by the developments, and especially the public aspect of the developments, in Seattle, and she indicated that we strongly support Saudi Arabia's aspiration to join the World Trade Organization and particularly support the steps that the Saudi government is proposing to liberalize certain trade issues so that that becomes possible. Again, she indicated her support in general for their joining on, obviously, commercially-acceptable terms.

QUESTION: Do you think that Albright will succeed in her trip to lessen the differences between the Israelis and the Palestinians regarding the settlements?

MR. RUBIN: With respect to her trip, the purpose of her trip is not to overcome this particular issue. The purpose of her trip is to try to encourage steps to move forward; to try to assess the developments that have occurred so far in the permanent status negotiations; to try to see whether a basis exists for the President bringing the leaders together in a summit, as he indicated he would be prepared to do if such a basis exists. Settlement activity is something of concern to us, for the reasons that I stated earlier -- the potential it has to prejudge and predetermine issues to be discussed in the negotiations, as well as the fact that it could complicate the environment under which this is taking place. But just as settlement activity itself is a major problem, so is the suggestion that unless that is solved to one party's satisfaction that the talks can't go forward. The way to resolve these things is through discussions and negotiations, and one can't hold such discussions and negotiations hostage to some precondition on any particular issue. But as far as our view of settlement activity is concerned, we do view it as a matter that we oppose because of the reasons I've stated twice now.

QUESTION: Any new ideas on the talks between Syria and Israel?

MR. RUBIN: Yes, thank you for that question. I tried to address it a little bit earlier. As I indicated, this is a difficult issue. It will require very tough choices by Syria and Israel. The general topics include the question of withdrawal, the character of the peace, the timing of implementation, and the security arrangements necessary. So those are all issues, and they all interlock in their own way. We are and have been trying to develop a formula that would enable the talks to restart, but not just to start for their own sake but to move quickly to an agreement. With respect to what she will bring to Damascus or Israel on this subject, today is Monday and we are in Saudi Arabia…today is now Tuesday a couple hours, an hour and 45 minutes into Tuesday, I think that she would prefer to have those kind of detailed discussions with President Assad and Prime Minister Barak before I blurt them out.

QUESTION: (inaudible)

MR. RUBIN: Well, certainly, one of the issues that is very important to us is that fact that peace must carry with it benefit to the people if they are going to make these tough decisions. The phrase "peace dividend" is one that we use in the United States, and I hope it translates well. Certainly we have been encouraged by the fact that the Saudi government has been assisting the Palestinians as they move forward to implement the various aspects of the peace process. For example, the Saudi government recently funded the construction of two Palestinian courthouses. This is important in our view, by helping to support the rule of law. In general we look to Saudi Arabia to help in the region, to create an atmosphere where the region becomes open and supportive to the peace process. As I indicated, I think she is quite encouraged by the fact that the Crown Prince and the King indicated that they regarded a moment of opportunity, an historic moment of opportunity, as being before us, both for the governments of the region and the people, the Arab peoples in the region, who are ready and willing to move towards a new era, where the co-existence between Israeli and Palestinian and Arab neighbors is taken to another plane. Keeping that openness and willingness and climate going in the Arab world, even as the Israelis and Palestinians have to make these tough decisions, is another important role that Saudi Arabia can play. Finally, we have been encouraged that Saudi Arabia has helped the Palestinians to develop institutions that will enable them to govern in the areas pursuant to the Sharm el-Sheikh Agreement and institutions that obviously need building since they are new.

QUESTION: (inaudible)

MR. RUBIN: Well, I am not aware the Saudi government is supporting those activities; that would be troubling, indeed. That is not my understanding at all, let me be clear on that. There have been a number of reports indicating that a number of citizens in this region, and around the world, have been supportive of terrorist organizations, and that is a matter of concern to us; that is a subject that comes up. At the level that they were talking when I was there it was not involving particular individuals or anything like that. And with respect to Iran, helping to convince Iran of the damage that it does to the region and to the Arab peoples by purporting to thwart and stop the peace process that Saudi leadership made clear is something the Arab community and the people of the region want. That is important, and that would be very important if it were to lead someday to a change in practices by the government of Iran.

QUESTION: Regarding the Iraqi issue: Is there any agreement between Saudi Arabia and America regarding the British-Dutch proposal?

MR. RUBIN: Yes, Secretary Albright did discuss that with both the Crown Prince and the King, and there was a meeting of the minds between the Saudi government and the United States about the importance of seeing that resolution approved by the Security Council, and we were quite encouraged that Saudi Arabia indicated that it would be working to encourage other countries who might not yet have committed to that approach, to commit to it. We think that this approach is based on our shared view that Iraq must comply with the requirements of the Security Council. And our shared view that we should all do what we can to improve the situation of the people of Iraq. In fact, it is not well understood -- especially in this part of the world -- that the sanctions do not prohibit the sale of food or medicines to Iraq; it's not prohibited by sanctions. But because Saddam Hussein refused to spend his money on the food and medicine the Iraqi people need, the United States, with the encouragement of Saudi Arabia and other countries, created a program that has now led to more than five billion dollars of food and medicine and humanitarian supplies provided to the people of Iraq, and even more than that oil has been sold to make available additional food and medicine. So we share not only our commitment to get Iraq to comply with the Security Council resolutions but also to do what we can, so long as Saddam Hussein won't, to provide food and medicine to the people of Iraq.

QUESTION: Regarding the United Nations resolutions on Iraq, do you think that the UN will issue a resolution next week, and in case they issue a resolution and the return of the international inspectors, do you think Saddam Hussein would do something regarding that, or will oppose it?

MR. RUBIN: We believe that we have been working on this resolution for a long, long time; that members of the Security Council have reviewed this resolution in excruciating detail from every different direction. We think this resolution provides a sound approach that will make clear that sanctions can be suspended if Iraq were to allow the inspectors to return, were to fulfill key disarmament tasks, and were to cooperate for a sufficient period of time. So, that is the approach that we've taken. That resolution has widespread support in the Security Council. As I indicated, the Saudi government is supportive of it because it requires Iraq to comply with Security Council resolutions. So, we think the time has come to move to adoption of the resolution. Secretary Albright has been in touch with Foreign Minister Ivanov in recent days, and his Ambassador is returning to New York. I expect there to be additional discussions, and then she is prepared to talk to Minister Ivanov again. As far as what will happen if the resolution is adopted: Will Saddam Hussein comply with it? That is not knowable at this time. Iraq has complained about it; has said that it is unacceptable; has said that they don't want to comply. They think that, magically, sanctions are going to be lifted without their giving up the information the Security Council demanded on weapons of mass destruction; without cooperating with the UN inspectors that they could have finished cooperating with in 1991, but have refused to cooperate with. On the other hand, there have been many times when Iraq has said that it won't do this or it won't do that; when it won't comply with this demand or that requirement, and then -- because it's a complete dictatorship -- they turn 180 degrees, and have complied with resolutions for certain periods of time. So it's not possible to know. What is possible to know is that the Security Council goes as far as it can in trying to develop a basis to proceed. But then, if Iraq doesn't comply, the sanctions will stay on indefinitely and we will remain ready to use force if Iraq were to reconstitute it weapons of mass destruction, or threaten Saudi Arabia and Kuwait again, as they did in the past.

QUESTION: There is no doubt that Saudi Arabia has now good relations with Iran; and United States said, by itself, that Iran is supporting terrorists. Did the Crown Prince ask you or advise Secretary Albright to try to have contact with Iran, with the Iranian government, especially with President Khatemi? Thank you.

MR. RUBIN: Yes, a good question. First of all, we recognize that countries in the region often have discussions with each other. We don't have any doubt that Saudi Arabia, like the United States and all of the civilized world, opposes state sponsorship of terrorism. Saudi Arabia has taken steps to improve its relationship with Iran, primarily in the commercial area. With respect to the U.S. approach, we have indicated we are prepared to discuss the issues of concern to Iran and to discuss the issues of concern to us in a direct dialogue. We have said that over and over again. Secretary Albright laid out in a speech to the world her vision of developing a road map to normal relations with Iran. But so far Iran's response has been to focus primarily on people-to-people, non-governmental contacts. So we certainly hope that some day Iran takes up its own interest in developing better relations with the outside world. In the meantime, we have urged our allies and friends who are in contact with Iran to make the case against harming the region and harming the prospects for a better future for the peoples of this region by stopping or trying to stop the Middle East peace process.

QUESTION: Again on the Iraq issue: If Iraq refuses the United Nations Security Council resolution, do you think the United States would use military force like last year?

MR. RUBIN: Because Iraq has refused to commit itself to comply with Security Council resolutions, and because Iraq refused to cooperate with the inspectors and misled the world about what it did, and what it has, and what it will do, the inspectors were no longer able to do their job. As a result, the United States with the support of many nations in the world, took military action to help deter and defend against the danger that Saddam Hussein poses for the world. This is a repeat offender who has attacked Kuwait, posed threats to Saudi Arabia, used poison gas against its own people, had a decade-long war with Iran. This a dangerous dictator. We have said only with respect to the use of force that if Iraq were to threaten its neighbors, as it did in 1990, or if Iraq were to seek to reconstitute its weapons of mass destruction, or were to attack the Kurds in the north, those would be grounds for us to use military force. If Iraq doesn't comply with this resolution, the result will be the sanctions regime will remain unchanged and there will be no prospect for Saddam Hussein to let his country re-enter the international community, which is something that the people obviously want desperately.

Thank you.