Embassy Spokesman: Good Afternoon Ladies and Gentlemen. Today we're very honored to have the Secretary of the Treasury, Lawrence Summers. Also joining him on the dais is U.S. Ambassador to Japan Thomas Foley, the National Economic Advisor Gene Sperling, and the Deputy National Economic Advisor Lael Brainard. The Secretary will begin with a few remarks and then go to questions.

Secretary Summers: I want to just briefly describe what I think was a historic meeting that took place today. For the first time G-7 as a group, met with leaders of major developing countries from Thailand, South Africa, Nigeria and Algeria. For the first time members of the G-7, along with members of developing countries, met with representatives both of the private sector and with representatives of major international organizations. And for the first time the focus was dominantly on the challenge of development and particularly the relation of new technologies to development. I think this meeting, which sets a framework for the formal G-8 Summit in Okinawa, reached several conclusions which I think are widely shared.

First, that there was very substantial intellectual convergence, and the challenges are very heavily in the implementation, and actually making a difference on the ground. Second, that a dominant, a crucial role in development had to be provided to the new technologies of information technology and the availability of information technology and the application of biological science to the burden of disease. I think it was universally recognized that as important as economic policies are, they are necessary but not sufficient for development success. One also has to integrate to the rest of the world and has to address the risks and dangers of disease, and of AIDS in particular, if the development effort is to succeed. Third, there was agreement on the fundamentals for development, including the overwhelming importance of education and including the importance of moving forward as rapidly as possible with effective programs of debt relief that assured that resources were channeled to improved education and healthcare.

So, I think it was a very productive and very interesting session that brought together a variety of perspectives. I think it set a stage for a G-8 that will emphasize the development issue and within the development issue will emphasize the information technology, infectious disease, education, and debt issues.

Spokesman: I believe that Mr. Sperling now has a statement from the President.

Mr. Sperling: Yes, first of all before reading the statement let me say that we were very appreciative of the support from so many people who came a long distance for this meeting. John Gage, who is actually here in the room, John Chambers, the CEO from CISCO, Jim Wolfenson who went to extraordinary lengths to be able to make this meeting, Mark Brown, the head of the UNDP, Grail Brunland from the World Health Organization, the CEO of Sony who you know well, and then Burton Ellis from Anderson - all of them coming together made this a very significant meeting.

The President is extremely excited and enthusiastic about the focus that this G-8 conference has on this integrated approach to these crucial development issues that Larry has mentioned. I also wanted to just take this moment to say that Lael Brainard met most of you, I think most of you know she is the Sherpa and the Deputy of the National Economic Council and really did an extraordinary job in helping to encourage this focus working with the Japanese government and Prime Minister Mori's office and this focus on the digital divide and information technology.

The President, as we speak, is in the air. He is on his way to Japan and will arrive in time for his planned morning events in Okinawa.

The statement that he wanted us to read today is the following:

"At today's unprecedented meeting in Tokyo, G-8 leaders met with leaders from developing nations and representatives from the private sector and international development institutions. While I regret that I was unable to participate, I look forward to hearing from Secretary Summers and my G-8 colleagues about the discussion and working to ensure that everyone benefits from the global economy. Building on last year's Cologne Dept Initiative, the Okinawa Summit will create a framework to fight infectious disease, increase access to basic education, and expand opportunity through information technology. Despite a stronger global economy, too many people around the world live every day without essential health care, basic literacy, or the opportunity to share in the benefits of modern technology. I am committed to continuing to work closely with America's partners in the G-8 and the developing world to address these issues, reduce poverty, fight infectious disease, and increase opportunity for all."

Thank you. We're happy to respond to your questions.

Q. I am from Kyodo News. My question is about the Japanese economy. Recently the Japanese Central Bank has decided to maintain its zero interest rate policy. However, the Bank's monthly report released yesterday, depicted a brighter picture of the Japanese economy, this seems to be indicating that the bank is ready to end the practice at its next policy setting meeting. What can you tell us about that assessment?

Secretary Summers: I was in Japan just a little less than two weeks ago for the Finance Ministers meeting, and at that time I answered a number of questions with respect to the Japanese economy, and I don't have anything to add to what I said at that time.

Q. Mr. Secretary, Given the situation in Congress, have you been able to make any commitment, or give any reassurance to the developing world regarding the debt relief effort on the part of the U.S. ?

Secretary Summers: Let me say that achieving the necessary appropriations from a Congress is an absolutely critical priority for the administration this year, and that is something that we made clear to our foreign counterparts. While there have been issues of countries that have not qualified for debt relief because of meeting the conditions for reasons relating to corruption, or for reasons relating to conflicts that have broken out, it is also the case that for a number of countries, particularly Bolivia in Latin America, the only thing standing between them and fully benefiting from the (inaudible) terms is the necessary congressional action. So we regard it as a matter of great importance for Congress to act as rapidly as possible to provide the necessary funds. As you know, in the context of a foreign assistance bill, which the president has made clear is highly problematic in many respects, that came out of the House of Representatives, there was a vote on an amendment expanding the funds for debt relief in which a number of leaders from both parties voted in favor of it, and in which, a rather rare action, there was a significant increment with respect to debt provided on the floor of the House of Representatives. But there is much more that needs to be done as we work through the legislative process and all of us in the administration are very committed to working with the Congress to assure that the necessary funds are made available.

Q. I am from Bridge News. Mr. Secretary could you comment on the report that the G8 is going to endorse a rescheduling of Russia's Soviet era debt?

Secretary Summers: Well I think I would rather not comment on the G8 actions until the G8 has taken whatever actions it will take. I would note that that last year in Cologne, the G8 had indicated a preparedness to provide for rescheduling of Russian debt in the context of appropriate IMF programs.

Q. I am from the Spanish News Agency. In the statement in the meeting today, did you mention, or was unemployment mentioned, because you always focus on debt relief and help to the developing countries. Was it mentioned, unemployment or creation of employment?

Secretary Summers: I don't recall a specific discussion of the unemployment issue, but there certainly was reference to the importance of the strong economic conditions and economic growth, which goes very much to job creation and the reduction of unemployment. Clearly one of the crucial causes of development problems is the lack of economies' capacity to fully use their resources, and in that regard no resource is more important than the human resource. So putting people to work is a central priority, and of course that is one of the important reasons why education was something that was very much stressed during the discussion.

Q. I am from the Associated Press. Just wondering if there were any specific initiatives discussed during the talks. I know yesterday there was a proposal for one billion dollars in loans for African countries for the purchase of drugs and medical equipment from U.S. companies. Is there anything like that responding for IT, responding to the information technology divide?

Secretary Summers: There was discussion of cooperation in various terms, but I think that's an issue that I would expect when they are among themselves, the G8 leaders will discuss in more detail, and bring to finalize certain concrete suggestions that they will want to make in the context of their meetings. So I think its probably best for me not to comment on the specifics until they have had that discussion rounding it out. Lael, I don't know if you want to add anything, you've been very much involved in the preparation process for these meetings. I don't know if there is anything you want to add.

Ms. Brainard: Just to agree with Larry's characterization, I think there was a discussion, in particular President Mbeki of South Africa made a very strong case that there is increasing international consensus about what the imperatives are, and Prime Minister Blair of the U.K. in particular agreed, and said now it is important for us to move from agreement on the priorities to actual pragmatic actions, and lets talk about that when we meet on the G8 sessions on Saturday.

Secretary Summers: Thank you.
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