Accessing variables

[pavanmach]

my program is as under:

#!/usr/bin/perl

my ($file1,$file2);
open(FILE1,"<$ARGV[0]");
open(FILE2,"<$ARGV[1]");

while(<FILE1>)
{
   chomp($_);
   $file1 = $_;
   $file1=~s/\s+//;
   #print "$file1 \n";
   while(<FILE2>)
   {
      print "<$file1> \n";
   }
}

now the two files are as under: file1.txt

    haai hru welcome
hello

thats gr8

select * from emp;

file2.txt


    haai hru welcome
hello
thats gr8

select * from emp;
select * from dual;

In the above program i have two while statements. I am trying to print file1 variable in first while which is successful and the output is as under:

haai hru welcome
hello

thatsgr8

select* from emp;

while i am tring to print the same $file1 in second while statement statement the output is :

<>
<>
<>
<>
<>
<>

I am not able to access the variable ($file1) in second while loop. Why so? How can i overcome the problem ?