| After the wrap up of the summit of the Asian Pacific | | | | issue will be simple and straightforward. "I think it is an |
| Economic Cooperation (APEC) forum in Santiago, | | | | important piece of legislation and I am looking forward |
| Chile, President Bush held private talks with Chilean | | | | to working it. You asked me what my tactics are. I am |
| President Ricardo Lagos. Mr. Bush emphasized his | | | | going to look for supporters on the hill [in Congress] |
| commitment to strong relations with Latin America. | | | | and move it," he said. |
| In a joint news conference following their meeting, | | | | Reporters also asked President Bush about the |
| President Bush and President Lagos hailed the benefits | | | | looming U.S. deficit and the effect that it has had on |
| of the free trade agreement between their two | | | | the world economy. Mr. Bush said part of his plan to |
| nations. But a Chilean reporter asked President Bush if | | | | cut the short-term U.S. deficit involves reform of |
| he was losing influence in the Americas to China. | | | | so-called "unfunded liabilities" such as Social Security |
| Chinese President Hu Jintao has extended his nation's | | | | and Medicare. He said Chile has a model that could be |
| influence in recent months through trade talks and | | | | helpful in this regard. "For example, in Social Security, I |
| investment projects amounting to more than $10 billion | | | | talked about the need for personal savings accounts |
| with nations like Brazil and Argentina. The Chinese | | | | for younger workers as a part of a solution. Frankly, |
| have also sought energy and basic commodity | | | | the Chilean model serves as a good example for |
| agreements in Ecuador, Peru and Venezuela. | | | | those who are going to be writing the law in the United |
| But President Bush said he did not view commerce as | | | | States," he said. |
| a, in his words, "zero sum." He said China's growing | | | | Chile adopted a privatized retirement system in 1981 |
| economy offers increased trade opportunities to both | | | | after the state-sponsored pension plan came to the |
| Latin America and the United States. | | | | brink of bankruptcy. Under the system now in place, |
| In regard to his guest worker program that would | | | | workers contribute a percentage of their wages to |
| benefit Mexican immigrants to the United States, Mr. | | | | one of several independently managed mutual funds. |
| Bush said he does plan to use some of what he calls | | | | Although the Chilean plan is now considered fiscally |
| his "political capital" after winning re-election earlier this | | | | solid, critics note that it fails to cover all workers and |
| month to push for congressional approval of the plan. | | | | that even some retired workers under the plan rely on |
| "We would much rather have security guards chasing | | | | government subsidies to remain above the poverty |
| down terrorists or drug smugglers than people coming | | | | line. |
| to work and so, therefore, I think a guest-worker | | | | Still, the overall success of the Chilean pension plan has |
| program is important and I look forward to working | | | | attracted the attention of lawmakers in Washington |
| with Congress on it," he said. | | | | who are seeking ways of reforming the U.S. Social |
| The president said his plan to engage Congress on this | | | | Security system before it faces crisis. |