tinue to cooperate with President Gorbachev.

President Gorbachev. I don't know if I would be allowed to tell you a secret here. I haven't asked President Bush if he'll let me. But I must admit that I'm dying to take the risk and tell you. [Laughter] But it's too important to give you an answer to this particular question. But that last sentence does really give me the hope that we'll get by. In our talks, the President said, "You know, there was a long time when our view was that the Soviet Union had nothing to do in the Middle East-had no business being there." This was something that we had to talk through during this meeting here in Helsinki. And what was said here is that it's very important for us to cooperate in the Middle East, just as it is on other issues of world politics.

So, that is in answer to your question, it is very important that at each meeting we move forward, we enrich our relationship, and I think I should say that we increase our trust. If trust is engendered between the leaders of two such nations during meetings of this kind-then I'm sure you'll agree with me-that that is for the good of all of us, whether we want it or not. History dictates that a lot is going to depend on whether the two countries can work together. That's not our ambition, it's just the way that history has gone. So far from excluding such a possibility, we intend to cooperate with all sorts of other countries as well, more and more. That's how we see our role in the world developing.

And my last comment is also very important. It seems to me that the way the world is, the way the world is changing, in today's world no single country, however powerful, will be able to provide the leadership which individual countries formerly tried to provide, including some countries which are represented here. We can only succeed if we work together and solve our problems together. That is what is emerging from these negotiations, and that we consider the most important aspect. Soviet-Iraqi Relations

Q. I'm going to speak French, if I may. Could I ask Mr. Gorbachev whether the Soviet Union is still Iraq's friend, as Minister Tariq Aziz declared in Moscow last week?

Are you still the friend of Saddam Hussein? And another question also directed to Mr. Gorbachev-President Saddam Hussein

stated yesterday that the Soviet Union would demonstrate that it is a great power by resisting George Bush's pressure and by supporting the Baghdad regime. Could you indicate to me, if you would, what your reply would be to Saddam Hussein?

President Gorbachev. I want to reply to you and so to repeat it also to Saddam Hussein-the same reply that I've given to previous questions-my position is unchanged. We see our role and our responsibility, and within the framework of that responsibility we shall act in cooperation with the other members of the Security Council. And, in this instance, I can once again say since we are sitting here, two Presidents together, I should interact and cooperate with the President of the United States.

I'd very much like to express the hope that President Saddam Hussein will display-I really hope that he will display sobriety, will look carefully at the whole situation and will respond to the appeals and the demands of the world community, and that he will take steps that are suitable to the situation, that are carefully weighed in their worldwide implications and in their impli cations for the Arab world, too. No one has any intention of trying to exclude Iraq from the community of nations, but what the present Iraqi leadership is doing is driving it into a dead end. And I hope that President Saddam Hussein will heed this appeal to him.

Soviet Military Participation in the Gulf

Q. As a neighboring country of the conflict-we're from Turkish press.

Q. I think I'm next. I'd like to ask Mr. Gorbachev if you have ruled out the possibility of a Soviet military participation in this effort in any sense, either as part of the naval blockade or as part of some future peacekeeping force in the region? And I would follow up with a question to Mr. Bush-to what degree that would be a disappointment to you if that's Mr. Gorbachev's position?

President Gorbachev. I don't see the point of doing that now. And we shall continue to act in cooperation within the Secu

rity Council and in strict compliance with all of its decisions.

President Bush. I'm not disappointed in that answer. [Laughter]

Q. I mean, you said you're determined to see this aggression end and current steps are being considered. What does this mean? What comes next?

President Bush. It's too hypothetical. We want to see the message get through to Saddam Hussein. We want to see him do what the United Nations calls on him to do. And that statement can be interpreted any way you want to interpret it, but it's out there. And I would simply not go into any hypothetical questions that would lead me beyond what that statement says.

President Gorbachev. Could I add a couple of words? Please, if you would excuse me, I'll add a couple of words just to what Mr. Bush has already said. You know, in my view, I have the impression that both the press and public opinion in some countries is in some ways saying that there's a lack of decision on somebody's part, that we're withdrawing in the face of those who are trampling on international law. I cannot agree with that view. In fact, it's a view which causes a certain amount of embarrassment to the leadership of nations which are acting through the Security Council in this respect.

What has been done up until now in answer to Iraqi aggression is very important because action has been taken not only within the framework of the Security Council, but there has been unanimous world opinion, a kind of solidarity which has never been expressed before in the history of the world. And we have prevented the aggression going any further. We have preserved the functioning of the structures which are of economic importance which would affect so many other countries as well.

And finally, the resolution has been taken on an embargo, which is a very stiff measure, in reaction to the aggression. In my view, this is a strategic way of tackling the question which has been tackled successfully at the first stages. And we are convinced that the next stage of a political solution, achieved politically, to put an end to this acute international crisis and make sure that a political sentiment should be possi

ble that in this situation, decisiveness, willpower, and responsibility, and political faith in the possibility of a political solution to this very difficult issue shows that the political leaders of the world are being responsible to their own nations and to the world. And we do not want to get caught up in arguments about prestige and so on. Humanitarian Aid for Iraq

Q. Concerning the humanitarian aid, does your joint statement mean in practice that you consider that food should be now allowed to Iraq?

President Gorbachev. The President's felt it necessary to reflect in our joint declaration that we see the need to uphold what was decided by the Security Council on this subject. And the Security Council was prepared to admit, for humanitarian purposes, the supply of medicines and of foodstuffs required first and foremost for children. We've actually stated this quite plainly in our statement. And so, we've taken a very clear-cut position on that. But we've also made it clear that this mistake is within the framework of certain international organizations and being monitored by them at all stages of the operations. So I think that this is being stated in the correct terms.

President Bush. I agree with President Gorbachev on that point and that the language is very good because it does express the concern that both countries feel in the event there actually are children and others who are suffering because of lack of food. I hope that nobody around the world interprets this as our view that now there should be wholesale food shipments to Iraq. Because I can speak only here for the United States when I would call attention to the fact that we need some kind of international agencies to see that there is this humanitarian concern, as expressed, this exception in the United Nations embargo for humanitarian purposes-and not only is it required for this humanitarian circumstance but that the food gets where it is supposed to go. So, this should not be, from the U.S. standpoint, interpreted as a wholesale big hole in this embargo. It was not our intention, and I think the language is very clear on that point.

Persian Gulf Crisis and Soviet Military
Advisers in Iraq

Q. A few things if you could clear up for us. First of all, you seem to disagree on the military option when you talk about further steps being taken to implement the U.S. sanctions. President Bush, you seem to be saying the military option is still out there. President Gorbachev seems to disagree. Do you disagree on that? Did you ask President Gorbachev to pull his experts out of Iraq? And did you ask him to send troops into the Gulf region?

President Bush. I did not ask him to send troops in. If the Soviets decided to do that at the invitation of the Saudis, that would be fine with us. But I did not ask him to do that. I believe with the 23 countries that are participating on the ground-23 countries that are participating on the ground and at sea that the security of Saudi Arabia is close to safeguarded.

What were the other two points?

Q. Did you ask him to pull the experts out of Iraq? And do you disagree on the use of military force? You seem to say it's still an option. He seems to say it's not an option

ever.

President Bush. We may have a difference on that. As I think I've answered over and over again at home, I'm not going to discuss what I will or won't do. And President Gorbachev made an eloquent appeal, to which I agree, that a peaceful solution is the best. So I've left it open. He can comment on the other.

Again, John [John Cochran, NBC News], I'm sorry-the second point.

Q. The experts, pulling the experts out. President Bush. Well, I think it would facilitate things. But on the other hand, he's given his answer here. And that is not a major irritant. You've said that-I think he said that he is reducing the numbers there. But I think I tried to make clear that this was a question that was widely being raised in the United States, and it would facilitate things if they were out of there in terms of total understanding. But I heard his answer, listened to it very, very carefully, and must say that I would let it stand at that. If I was just saying, would I like to see them all out of there, I think I'd say, absolutely. But I'd let him add to that.

President Gorbachev. In answer to all these questions which you gave us such a clear list of, I've already given answers. I really don't have anything to add to the answers I've already given.

Role of Arab States

Q. A question to the two Presidents, please. You mentioned something about the security arrangements. Is the Soviet Union going to participate in any kind of security arrangements, and what is the role of the region and the countries of that region of the Middle East?

President Gorbachev. To the first question, as we began, we intend to continue to cooperate closely and actively in the framework of the Security Council. And on the basis of the decisions that have been adopted we shall act accordingly. That's the first point.

Secondly, as concerns the role of the countries of the region, yes, I think that, generally speaking, I would stress the importance of the Arab factor not yet really having been brought to bear in efforts to help resolve this crisis situation. I don't want to offer you an analysis right now as to why that's the case, but nevertheless, I am convinced that there is an obvious activation of the quest on the part of Arab States to find the response to the urgent situation which faces us all here. We cooperate with all the Arab countries and I might say, not unusefully. The outlines of possible steps are beginning to emerge, but it is too soon to be specific. We are continuing our cooperation with Arab countries, and at a certain stage when the situation has changed and when the tension has been reduced, then perhaps we might carry this further. But we shall continue in the Security Council, the United Nations Security Council, to guarantee security.

I have no doubt that we shall succeed in resolving the problem by political means.

President Bush. May I comment on that one, please? I am very glad that the Arab States-the Arab League, and in other ways have stated their condemnation of Saddam Hussein. He is trying to make this a contest between the Arab world and the United States. And it is no such thing-if you will look at how the United Nations has

overwhelmingly condemned him. So the Arab States have a very key role in this. Many Arab States have responded in the defense of Saudi Arabia-Syria, Morocco, Egypt, say nothing of the GCC [Gulf Cooperation Council] countries. So, it is not Saddam Hussein and the Arab world against the United States; it is Saddam Hussein against the United Nations and against a majority of the Arab League. And that is a very important point that I will continue to make, because the Arab League itself has stood up to him and urged his compliance with the sanctions and condemned his aggression.

So, in this case, I see the Arab States as having a very important role to play in the resolution of this question. And they have not been taken in by his attempt to make this the Arab world versus the United States of America when it is nothing of the kind. Mr. Fitzwater. Thank you very much. President Gorbachev. I want, the President and myself, to conclude this press conference by stressing our deep sympathies and feelings for the people of Finland, for the hospitalities extended to us on this soil, and to appreciate highly the contribution made by the President of this country and his wife to make these excellent arrangements for these meetings.

President Bush. May I simply add that President Koivisto and Mrs. Koivisto have been most hospitable. And I agree with this. We owe them a great debt of gratitude, and the people of Finland.

Note: President Bush's 60th news conference began at 5:52 p.m. in Finlandia Hall in Helsinki, Finland. President Gorbachev spoke in Russian, and his remarks were translated by an interpreter. Marlin Fitzwater is Press Secretary to President Bush.

budget amendments that reallocate funds to reform the Federal financial accounting system. This reform is part of an effort to improve financial control and to bring greater attention to claims on future Federal financial resources.

Because reform of Federal financial management systems and operations is a key component of the President's commitment to improving management in the Government, the Office of Management and Budget has initiated improvements in several areas of financial management. One of these is a policy that calls for developing and auditing agency financial statements. The current accounting system lacks an adequate balance sheet, satisfactory controls or audits, and the capability to provide an accurate picture of the Government's assets, liabilities, or financial risks.

Audits of these agency financial statements are especially important because they would help to ensure the accuracy of agency financial reports. At present, the Federal Government and most of its component agencies are not capable of producing annual general-purpose financial statements that can be audited. This initiative calls for the 14 Cabinet Departments, the Environmental Protection Agency, and the National Aeronautics and Space Administration to have agency financial statements developed and audits conducted by fiscal year 1994.

Preparation and audit of financial statements for all or part of 10 of the 16 targeted agencies would be conducted in fiscal year 1991. Five of the agencies will proceed without further congressional action. These amendments would permit 5 of the 10 agencies to reallocate funds to provide for audits.

White House Statement on Reform of the Federal Financial Accounting System

September 10, 1990

The President today approved and sent to Congress requests for fiscal year 1991

Message to the Congress Transmitting the Report on the Fiscal Year 1991 Federal Budget Sequestration September 10, 1990

To the Congress of the United States:

In accordance with the Balanced Budget and Emergency Deficit Control Act of 1985

The President today announced his intention to nominate Richard A. Claytor to be an Assistant Secretary of Energy for Defense Programs. He would succeed Sylvester R. Foley, Jr.

Currently Mr. Claytor serves as Principal Deputy Assistant Secretary for Nuclear Energy at the Department of Energy. Prior to this he served with Burns and Roe Enterprises, Inc., in several capacities, including president, 1981-1989; president of Humphreys and Glasgow Synthetic Fuels, Inc., a joint venture company formed by Burns and Roe, 1979-1981; and vice president, 1973-1979. In addition, Mr. Claytor served in the U.S. Navy in several capacities from 1949 to 1973, including project manager for the Nuclear Power Division, Bureau of Ships, and assistant manager for Pittsburgh Naval Reactors Office for the U.S. Atomic Energy Commission.

Mr. Claytor graduated from the U.S. Naval Academy (B.S., 1949) and the Webb Institute of Naval Architecture (B.S., 1956; M.S., 1956). He was born September 4, 1927, in Roanoke, VA. Mr. Claytor served in the U.S. Navy as a captain, 1949-1973. He is married, has three children, and resides in Bethesda, MD.

Nomination of Frederick Porter Hitz
To Be Inspector General of the Central
Intelligence Agency
September 10, 1990

The President today announced his intention to nominate Frederick Porter Hitz, of Virginia, to be Inspector General of the Central Intelligence Agency in Washington, DC. This is a new position.

Currently Mr. Hitz serves as managing partner with the law firm of Schwabe, Williamson and Wyatt in Washington, DC. Prior to this, he served as legislative counsel to the Director of the Central Intelligence Agency, 1978-1982, and Deputy Assistant Secretary of Defense for Legislative Affairs, 1975-1977. He served in the Central Intelligence Agency from 1967 to 1973.

Mr. Hitz graduated from Princeton University (A.B., 1961) and Harvard Law School (J.D., 1964). He was born October 14, 1939, in Washington, DC. Mr. Hitz is married, has one child, and resides in Alexandria, VA.

Statement by Press Secretary Fitzwater on the President's Telephone Conversations With Foreign Leaders on the Persian Gulf Crisis September 10, 1990

President Bush called Presidents Mitterrand [of France], Mubarak [of Egypt], and Özal [of Turkey], King Fahd [of Saudi Arabia], and Prime Minister Mulroney [of Canada] today. President Bush noted the historic nature of the joint statement on the Persian Gulf issued at the conclusion of his meetings with President Gorbachev [of the Soviet Union], and pointed out how this underscores the world community's determination to oppose Iraq's aggression against Kuwait. All the leaders expressed satisfaction on their concerted efforts against Iraq and pledged continued cooperation in this endeavor.