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Speaker 1: Bloomberg Audio Studios, podcasts, radio News.

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Speaker 2: The G seven to Foreign Minister Summit is underway in Quebec,

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Speaker 2: where we find our colleague Bloomberg's David Gura, who was

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Speaker 2: joined their live by Kaya Kallis, Vice President of the

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Speaker 2: European Commission and High Representative of the EU for Foreign

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Speaker 2: Affairs and Security Policy.

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Speaker 3: David, Well, thanks to both of you, and I do

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Speaker 3: have the used top diplomat here with me, and I

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Speaker 3: want to start with the news of the day and

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Speaker 3: certainly what's on the agenda here at this conference as well.

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Speaker 3: That is what happens with Ukraine. And my understanding is

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Speaker 3: during the morning session word came out that President Putin

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Speaker 3: had responded to what occurred in Saudi Reva a few

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Speaker 3: days ago. Can you just describe your reaction to that news.

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Speaker 3: The ball is in Russia's court and President Puttin evidently

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Speaker 3: is eager to talk to President Trump.

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Speaker 1: Well, the ball is in Russia's court, and of course

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Speaker 1: we are all very much looking forward to how they react.

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Speaker 1: Either they say yes with no conditions, no with no condition,

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Speaker 1: or yes with conditions. I would bet on the yes

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Speaker 1: with conditions. And then the question is what are these conditions?

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Speaker 1: What we heard from the media. These conditions are of

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Speaker 1: course not acceptable. I mean that there would be no

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Speaker 1: military to Ukraine. I think there was something else, you know,

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Speaker 1: it's not the conditions that we can live with.

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Speaker 3: Have you been briefed directly by the Secretary of State

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Speaker 3: by Marco Rubio about conversations that are taking place in

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Speaker 3: Russia between Steve Wikoff, the presence Envoy, and President Putin

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Speaker 3: in his team.

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Speaker 1: Yes, so, State of Secretary of State Marco Rubio briefed

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Speaker 1: us what was the case in Saudi Arabia with cough

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Speaker 1: Is traveling to Moscow and the talks there. So yes,

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Speaker 1: they're keeping us informed and also promised to, you know,

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Speaker 1: not agree to any conditions that we wouldn't agree that

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Speaker 1: we definitely have to, you know, talk to each other

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Speaker 1: before anything moves for further.

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Speaker 3: Is there any update on what European nations want that

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Speaker 3: is the security guarantee for Ukraine? And if they aren't

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Speaker 3: in place, do you have much faith or confidence that

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Speaker 3: Russia would uphold its ender of the deal of in

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Speaker 3: fact there is one.

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Speaker 1: Well, that is always the question because we have seen

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Speaker 1: the ceasefires before and Russia has never kept to those agreements.

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Speaker 1: So that's why I think the best security guarantee, or

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Speaker 1: the first security guarantee that there is, is a strong

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Speaker 1: Ukrainian army. That's why we are also arming and helping

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Speaker 1: Ukraine to defend itself. I mean, we need to work

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Speaker 1: with that. We don't have any guarantees from Russia's side

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Speaker 1: that they are intending to keep those agreements. But of

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Speaker 1: course right now the ball is in Russia's court. To

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Speaker 1: show goodwill, they could start with, you know, giving back

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Speaker 1: the children that have been deported to Russia. They could

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Speaker 1: start with releasing the prisoners of war. They could start

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Speaker 1: with many elements to show their goodwill.

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Speaker 3: Really, you said from the get go that Europe had

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Speaker 3: to have a seat at the table for these conversations

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Speaker 3: about a deal. Are you being briefed regularly? I do

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Speaker 3: you feel involved in this process? Are you satisfactorily involved

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Speaker 3: with how it's playing well?

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Speaker 1: Any deal without us conscious simply work because the war

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Speaker 1: is in European soil and it needs Ukraine and also

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Speaker 1: Europe to agree to any kind of conditions that we

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Speaker 1: have to implement, or any kind of deal that we

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Speaker 1: have to implement that gives us the seat around the table.

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Speaker 3: I want to ask you just about the quality of

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Speaker 3: conversation that you're having with your counterpart from the United States.

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Speaker 3: You travel to Washington, we're supposed to meet with him,

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Speaker 3: a calendar issue that didn't happen. Are there plans for

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Speaker 3: the two of you to have a bilateral meeting to

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Speaker 3: meet one on one here in Quebec.

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Speaker 1: Well, we met. All the breaks we discussed and all

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Speaker 1: these conversations that we have inside the room very very friendly,

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Speaker 1: addressing issues that we need to work together on the

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Speaker 1: Middle East, when it comes to Africa, when it comes

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Speaker 1: to different you know, parts of the world. So these

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Speaker 1: interactions are actually very very positive. I also extended standing

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Speaker 1: invitation to Marco Rubio to come to the Foreigner First

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Speaker 1: Council that we have every month, where you know, we

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Speaker 1: could have the discussion with the twenty seven foreign ministers

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Speaker 1: of Europe.

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Speaker 3: He's interested, he's looking into the dates. I want to

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Speaker 3: ask you about the trade war, which is not an

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Speaker 3: agenda item here, but it's certainly the backdrop to all

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Speaker 3: of the conversations that are taking place here. It's something

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Speaker 3: that you said that you wanted to avoid early on,

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Speaker 3: and now we aren't just in the middle of one,

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Speaker 3: but it's escalating quite quickly. We've heard from the President

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Speaker 3: of United States today that the intense to tire of

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Speaker 3: champagne and French wine at two hundred percent. Your response

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Speaker 3: to the speed with which this has happened and also

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Speaker 3: how it's been.

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Speaker 1: Ratcheted up, well, of course, like I said before, I mean,

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Speaker 1: we are not interested in trade wars. There are no

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Speaker 1: winners and trade wars. Who is laughing on the side

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Speaker 1: or looking at the side. Is China's really benefiting from,

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Speaker 1: you know, us having a trade war with Europe? But

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Speaker 1: it is also clear that if these tarifts are put

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Speaker 1: on us, then we are also defending our interests. But

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Speaker 1: like I say, in the end, eventually the consumers get

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Speaker 1: to pay higher prices and that is not in the

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Speaker 1: interest of anybody. So we really try to avoid these things.

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Speaker 1: But of course we see these news coming all the time.

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Speaker 1: I think right now it is important to keep cool

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Speaker 1: heads because we see the statements, and then what it

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Speaker 1: really matters is the actual you know, steps, the legal

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Speaker 1: acts that are done. And then we are also you know,

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Speaker 1: ready to react.

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Speaker 3: A stupid question or a basic one, But are you

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Speaker 3: confident you know what the US wants when it comes

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Speaker 3: to this trade war. As you watch all these Salvos

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Speaker 3: and Esco relations, do you know what you could do

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Speaker 3: or might do to appease the President of the United

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Speaker 3: States and then the war that started a few weeks ago.

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Speaker 1: Well, of course you have to ask the President of

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Speaker 1: the United States what is their goal regarding this. But

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Speaker 1: what they have been voice or what they have been

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Speaker 1: saying out, is that there is a trade deficit between

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Speaker 1: our countries. It is of course not that big, and

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Speaker 1: we can address this in a different different way, But

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Speaker 1: it is how it is. Like I say, we keep

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Speaker 1: a cool head, and of course we are ready to

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Speaker 1: act and defend our interests when we need to.

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Speaker 3: Your focus, of course, has been on the proceedings here.

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Speaker 3: But in Germany, the Parliament is debating a spending package

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Speaker 3: and spending more money on defense. That country is in

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Speaker 3: a unique position to do that. Is there more that

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Speaker 3: the EU could do to help other countries that don't

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Speaker 3: have the same kind of fiscal band with that Germany

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Speaker 3: does to defend themselves.

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Speaker 1: Well, well, we came with proposal that has several elements

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Speaker 1: how to find the funding to increase defense spending because

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Speaker 1: it is clear that we need to invest more in defense.

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Speaker 1: There are different elements. They were presented last week, but

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Speaker 1: I think, you know, also very important part is how

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Speaker 1: to open really the private funds also for defense spending.

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Speaker 1: And there I think key is also the European Investment

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Speaker 1: Back changing its rules, because it's also an example for

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Speaker 1: any kind of other bank to not put the defense

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Speaker 1: investments in the same pocket as scambling, for example, which

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Speaker 1: is not good for you know, a bank about investments.

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Speaker 1: So I think these are good steps, but we need

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Speaker 1: to move much faster. That is, that is very clear,

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Speaker 1: and the you know will is there.

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Speaker 3: I know you're sartorial signifier. You're wearing red with a

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Speaker 3: maple leaf, your German counterpart, also expressing solidarity with the Canadians,

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Speaker 3: of course on the subject of this trade war as well.

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Speaker 3: What message are you trying to send? Yes by doing that,

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Speaker 3: but also here in conversation with your colleagues from the

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Speaker 3: G seven.

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Speaker 1: Well, Canada is our group partner and we are here

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Speaker 1: in this wonderful place in Canada, so of course we

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Speaker 1: have very good relationship and friendship with Canada. So I

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Speaker 1: think this is important that we are in this together

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Speaker 1: when it comes to different wars and conflicts around the world,

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Speaker 1: but when it also comes to economic security, so you know,

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Speaker 1: we need to be there for each other.

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Speaker 3: I imagine that there is an element of this that's disorienting.

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Speaker 3: This is a group of allies and you have one

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Speaker 3: now who's not waging a shooting war against other members

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Speaker 3: of this multilateral institution, but is waging war. Is the

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Speaker 3: trade war? How do you think about that? And the

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Speaker 3: notion of allies and the way that nations outside of

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Speaker 3: the US are kind of coalescing with each other in

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Speaker 3: ourtion to the US here, I.

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Speaker 1: Think the key for us is our strength is in unity,

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Speaker 1: and of course our adversaries want to see the divisions

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Speaker 1: between the long standing allies as we are, because that

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Speaker 1: makes them stronger and that makes us weaker.

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Speaker 3: We have to keep this.

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Speaker 1: In mind all the time and really really work with

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Speaker 1: that unity. So I mean, we might have disagreements on

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Speaker 1: different issues because we are all democracies and coming from

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Speaker 1: our domestic politics here, but at the same time, we

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Speaker 1: are a lot of issues where we agree, so we

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Speaker 1: focus on those what we can do more.

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Speaker 3: I don't need to put too fine a point on it,

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Speaker 3: but this is once the G eight, now it's the

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Speaker 3: G seven. Do you worry about the integrity of this

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Speaker 3: institution going forward, but winning even more. Talked a lot

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Speaker 3: about alliances and allies and kind of growing that or

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Speaker 3: strengthening that going forward. Is this an institution that you

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Speaker 3: worry about in light of what's happened over the last

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Speaker 3: few weeks.

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Speaker 1: I mean, we have had extremely good meetings today and

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Speaker 1: we're going to have meetings tomorrow. So in the light

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Speaker 1: of this, I'm not.

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Speaker 3: Worried very quickly here we've heard a lot about the

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Speaker 3: community what might come together. Are you optimistic that there

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Speaker 3: will be some agreement here? Are the quibbles over language

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Speaker 3: is such that you don't think that's going to happen?

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Speaker 3: How optimistic are you that from this meeting will be

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Speaker 3: born a statement of purpose from all of you going

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Speaker 3: to Yes.

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Speaker 1: So we are still working on that, but optimistic that

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Speaker 1: we will reach an agreement.

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Speaker 3: Can you say what the sticking points are? Is it

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Speaker 3: related to Ukraine? Russia? Is it related to the bid least?

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Speaker 1: Well? The issues are there's a Middle East, it's Ukraine.

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Speaker 1: I mean the big topics that we discuss, and and

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Speaker 1: you know inside the room, actually we are very much

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Speaker 1: aligned on different dishes. So I didn't really see very

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Speaker 1: strong disagreements, but of course when it comes to putting

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Speaker 1: the words down on paper, then you know there's a

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Speaker 1: lot of details really, and the devil is in the detail.

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Speaker 3: Thank you very much for the time