By THE ASSOCIATED PRESS

          WASHINGTON -- President Clinton said on Wednesday he
          hopes U.S. and Cuban officials will not allow "politics or
          threats" to decide the fate of a 6-year-old Cuban boy caught in an
          international custody dispute. He rejected cutting off American aid to
          Russia in retaliation for its brutal campaign against the Chechen rebels.

          In an hour-long news conference, Clinton summed up the achievements
          and disappointments of a year that began with the impeachment trial and
          neared its close with demonstrators rioting in Seattle against his trade
          policies.

          Of the failed attempt by Republicans in Congress to remove him because
          of his involvement with a young intern, Clinton said, "The mistake I made
          was self-inflicted."

          As for 1999, he said he was "profoundly disappointed" that Congress
          rejected some of his initiatives, but overall, "I'm gratified by what was
          accomplished." He cited: an agreement under which China could enter
          the World Trade Organization, the start of peace talks on the future of
          Cyprus, a conventional forces agreement with Moscow, and "debt relief
          for the poorest countries of the world."

          Clinton also seized the opportunity to announce that Israel and Syria have
          agreed to resume peace negotiations. Talks are set to start next week in
          Washington.

          Asked about the Cuban boy, Clinton said there are difficult decisions that
          must be made on whether Elian Gonzalez will live in the United States
          with his late mother's relatives or in Cuba with his biological father.

          "I think all fathers would be sympathetic" to sentiments of Elian's father,
          Juan Miguel Gonzalez, Clinton said, but "what is best for the child" is the
          highest concern.

          "I don't think that politics or threats should have anything to do with it
          and, if I have my way, it won't," Clinton said, but he also said he did not
          think he should decide the boy's fate.

          He suggested that officials in both nations "try to take as much political
          steam out of it as possible" for the child's sake.

          Discussing a variety of topics, Clinton also:

          --Said that even though Vice President Al Gore is away a lot pursuing
          the Democratic presidential nomination, he remains an active player in
          Clinton administration decisions.

          --Said he is looking forward to living in the new home he and first lady
          Hillary Rodham Clinton purchased in Chappaqua, N.Y. -- which she
          referred to as "my house" when she confirmed that she would run for the
          U.S. Senate. He said he is reconciled to living apart from his wife
          temporarily.

          "It's not the best arrangement in the world, but it is something we can live
          with for a year," he said.

          --Sought to assure Americans that U.S. interests would not be hurt when
          the Panama Canal's operations are taken over by the government of
          Panama, with help from a company in Hong Kong.

          "I feel comfortable that our commercial and security interests can be
          protected under this arrangement," Clinton said.

          --Said the country's racial problems "will stay at the center of my
          concerns," even though he has yet to release the report on race that he
          promised more than a year ago. He said he is rewriting the draft. "I don't
          want to put it out unless I think it can make a difference."

          --Seemed genuinely surprised when a reporter pointed out that, despite
          his administration's record for hiring minorities, only whites had filled the
          top seven jobs on his White House staff. "I never thought about those
          seven jobs to the exclusion of others," Clinton said.

          Clinton promised to pursue in 2000 one legislative goal he failed to attain
          in 1999: tighter gun restrictions.

          The president said his administration is considering a lawsuit against gun
          manufacturers to recover costs of gun violence in public housing in hopes
          of getting the industry to "stop irresponsible marketing practices."

          He noted that one company was marketing a weapon by touting the fact
          it is difficult to get fingerprints off it. "You don't have to be all broke out
          with brilliance to figure out what the message is there," Clinton said.

          Clinton also said he thought it would be a mistake for the United States
          to cut off aid to Russia because of its military campaign in Chechnya. He
          said most U.S. assistance finances peaceful efforts such as advancing
          democracy, creating an independent media, and fostering student
          exchanges.

          "I don't think our interests would be furthered by terminating that,"
          Clinton said. Halting aid would "alienate Russia from the international
          community, and that's a bad thing."

          But Clinton also said he has "no sympathy" for Chechen rebels, even
          though he has criticized as too heavy-handed Russia's efforts to stamp
          out the rebellion.

          Clinton denied a political motive for his focus on labor and environmental
          issues at last week's inconclusive World Trade Organization meeting.

          "That's wrong," Clinton said.

          Critics have suggested Clinton was trying to boost the presidential
          campaign of Vice President Gore, who needs the support of both those
          traditional Democratic constituencies.

          The failure to launch a new round of global trade talks out of the WTO
          meeting in Seattle "has very little to do with my philosophy of trade,"
          Clinton said.

          Instead, three main blocs -- the Europeans, Japanese and Americans --
          were not prepared to drop longstanding positions on agriculture, steel
          prices and other matters, Clinton said. Developing nations, he said, feel
          they have not gotten enough benefit from the last round of talks, he
          added.