Weekly Compilation of Presidential Documents

Monday, July 15, 2002 Volume 38—Number 28 Pages 1145–1188

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Addresses and Remarks Communications to Congress—Continued Afghanistan, assassination of Vice President Fiscal year 2003 budget amendments, letter Qadir—1146 transmitting—1185 Congressional Medal of Honor, posthumous Federal Emergency Management Agency, presentation to Capt. Humbert Versace— letter transmitting disaster relief funding 1148 request—1185 Federal employees on the proposed Department of Homeland Security—1167 Ireland-U.S. agreement on mutual legal Minnesota assistance in criminal matters, message Prescription drugs in Minneapolis—1171 transmitting—1176 Senatorial candidate Norm Coleman and Russia-U.S. Agreement on the Conservation congressional candidate John Kline, and Management of the Alaska-Chukotka dinner in Minneapolis—1177 Polar Bear Population, message New York City, corporate responsibility—1158 transmitting—1177 Presidential Early Career Awards for Scientists and Engineers, recipients—1183 Communications to Federal Agencies Presidential Medal of Freedom, presentation—1164 Combined Federal Campaign of the National Radio address—1147 Capital Area, memorandum—1166 Communications to Congress Designation of Officers of the United States Agency for International Development To Canada-U.S. extradition treaty, message Act as Administrator, memorandum—1182 transmitting second protocol—1176 Climate change programs and activities, letter Electronic Government’s Role in transmitting an account of Federal Implementing the President’s Management expenditures—1165 Agenda, memorandum—1167 District of Columbia fiscal year 2003 budget Refugee assistance, memorandum on request, message transmitting—1183 delegation of authority—1166

(Continued on the inside of the back cover.)

Editor’s Note: The President was at Camp David, MD, on July 12, the closing date of this issue. Releases and announcements issued by the Office of the Press Secretary but not received in time for inclusion in this issue will be printed next week.

WEEKLY COMPILATION OF regulations prescribed by the Administrative Committee of the Federal Register, approved by the President (37 FR 23607; 1 CFR Part 10). PRESIDENTIAL DOCUMENTS Distribution is made only by the Superintendent of Docu- ments, Government Printing Office, Washington, DC 20402. Published every Monday by the Office of the Federal Reg- The Weekly Compilation of Presidential Documents will be ister, National Archives and Records Administration, Washing- furnished by mail to domestic subscribers for $80.00 per year ton, DC 20408, the Weekly Compilation of Presidential Docu- ($137.00 for mailing first class) and to foreign subscribers for ments contains statements, messages, and other Presidential $93.75 per year, payable to the Superintendent of Documents, materials released by the White House during the preceding Government Printing Office, Washington, DC 20402. The week. charge for a single copy is $3.00 ($3.75 for foreign mailing). The Weekly Compilation of Presidential Documents is pub- There are no restrictions on the republication of material lished pursuant to the authority contained in the Federal Reg- appearing in the Weekly Compilation of Presidential Docu- ister Act (49 Stat. 500, as amended; 44 U.S.C. Ch. 15), under ments.

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Executive Orders Statements by the President—Continued Establishment of the Corporate Fraud Task Iran—1184 Force—1162 Interviews With the News Media Supplementary Materials Exchanges with reporters in Kennebunkport, Acts approved by the President—1188 ME—1145, 1146 Checklist of White House press releases— News conference, July 8—1149 1188 Statements by the President Digest of other White House Deaths announcements—1186 Gen. Benjamin Oliver Davis, Jr.—1148 Nominations submitted to the Senate—1187 Ted Williams—1145

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Statement on the Death of Former President Bush. I’ve got words Ted Williams of wisdom for Eric. He ought to get out of July 5, 2002 there. The President. Get out of there, Eric. With the passing of Ted Williams, America [Laughter] lost a baseball legend. Whether serving the [At this point, the President continued to pre- country in the Armed Forces or excelling on pare for his golf outing.] the baseball diamond, Ted Williams dem- onstrated unique talent and love of country. President’s Hat He inspired young ballplayers across the Na- Q. What does your hat say? tion for decades, and we will always remem- The President. El Jefe. That’s French. ber his persistence on the field and his cour- [Laughter] age off the field. Ted gave baseball some of Q. I was going to sing for you in another its best seasons—and he gave his own best language. seasons to his country. He will be greatly The President. Thank you, sir. That’s an missed. inside joke.

NOTE: This item was not received in time for pub- [The President continued to prepare for his lication in the appropriate issue. golf outing.] Former President Bush. No laughing Exchange With Reporters in about the ladies’ tee. Kennebunkport, Maine President’s Birthday July 6, 2002 Q. Sir, what do you want for your birth- day? President’s Birthday The President. I don’t know yet. I haven’t The President. Good morning, every- thought about it. First of all, I’m glad—I’m body. glad my mother and wife remembered. Q. Happy birthday. [Laughter] The President. That’s the way we like it, up and early. [The President prepared to tee off.] Q. We do too. [Laughter] The President. Yes, Mr. President. Nice, The President. Up and at ’em. Feeling gentle applause rippling throughout the gal- a little older, if you know what I mean. lery. David [David Gregory, NBC News], how See you in a couple hours—like 2. are you, lad? [The round of golf proceeded.] President’s Upcoming Vacation The President. I apologize. Q. All right. Sir, now that you’re a little Q. Yes, right. older and wiser, are you rethinking avoiding The President. Miserable shot. spending all of August here? Q. You didn’t have any idea where we The President. No, I think—I think you’ll were, either, did you? like Crawford. The President. It’s clear I didn’t have any Former President Bush. It’s warmer idea where the ball was going—— there. Q. Mr. President, it’s up by the tree, sir. Q. Do you have any words of wisdom for The President. Who kicked it under him on the vacation schedule? there? [Laughter]

1145

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Q. David did. [Laughter] Bombing of Afghan Civilians The President. I was just kidding about Q. Sir, what do you say to the Afghan peo- the French thing. [Laughter] ple who are upset about the bombing of civil- ians? NOTE: The exchange began at 6:15 a.m. at the The President. Well, I say, you know, Cape Arundel Golf Course. In his remarks, the we’re investigating. I say ‘‘we.’’ Both the Af- President referred to White House Director of ghanistan Government and the United States Photography Eric Draper. A tape was not avail- Government are investigating to find out the able for verification of the content of this ex- facts. But I can say to the Afghan people ex- change. actly what I told to Chairman Karzai, ‘‘Any time innocent life is lost, we’re sad. Our country values life, all life, and we’ll find out Remarks on the Situation in what the facts are and then address it accord- Afghanistan and an Exchange With ingly.’’ Reporters in Kennebunkport July 6, 2002 Assassination of Vice President Haji Abdul Qadir of Afghanistan Assassination of Vice President Haji Q. Can the United States or the FBI or Abdul Qadir of Afghanistan someone help with the investigation of the assassination, or will they? The President. Today Vice President The President. Well, we’ll find out. Right Qadir of Afghanistan was gunned down. The now the Afghan Government believes they administration and our country mourns the can handle the investigation. There’s all kinds loss of a man who desired freedom and sta- of scenarios as to how the—who killed him. bility for the country he loved. We have been But we’ll work closely with the Government in touch with Chairman Karzai, expressed if they want us to. our deepest condolences to the Chairman Q. Sir, is there any sign that this kind of and the Government and people of Afghani- assassination may be connected to terrorist stan, who lost a good and valued friend. groups who are trying to get more involved The Afghan Government is in the process in the country? of investigating who might have done this. The President. It could be that. It could And we are more resolved than ever to bring be drug lords. It could be longtime rivals. stability to the country so that the Afghan Who knows? All we know is a good man is people can have peace and hope. dead, and we mourn his loss. I’ll answer a couple of questions. All right, thank you all. Thanks. Q. Mr. President, did you personally call Chairman Karzai? And what does this say President’s Birthday about the ability of a new Government to Q. Birthday plans, sir? form and actually succeed there, and what The President. Let’s see, settling in, a are your concerns? family lunch, may go for a run—it will be The President. No, I haven’t spoken to a mechanical run, however. Chairman Karzai yet. I spoke to him yester- Q. Why, not hot enough? day, interestingly enough, to express our con- The President. No, I wish I could get off dolences about the loss of life during the the Point, but I think the agents will say today military action. He was talked to by a mem- it’s probably best for me to stay on Walker’s ber of my national security team. Point. Let’s see, what else will be happening? I am confident and I believe Chairman Who knows? Maybe a surprise party. [Laugh- Karzai is confident that with patience and ter] Other than that, just hanging out with with aid and with a proper strategy, that Af- my family, which is a wonderful gift unto ghanistan can develop into a peaceful and itself. hopeful nation. Thank you all.

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President’s Round of Golf us, sets our enemies against us, and always Q. What took you so long to play 18 inspires the best that is in us. holes—just 2 hours and 10 minutes? In this 226th year of our independence, The President. Well, I think it’s because we have seen that American patriotism is still I three-putted too many greens. [Laughter] a living faith. We love our country only more Have a good day today. when she is threatened. America is the most Q. Happy birthday, Mr. President. diverse Nation on Earth. Yet, in a moment The President. Thank you all. we discovered again that we are a single peo- ple; we share the same allegiance; we live NOTE: The President spoke at 8:36 a.m. at the Cape Arundel Golf Course. In his remarks, he under the same flag; and when you strike referred to President Hamid Karzai of the Transi- one American, you strike us all. tional Authority of Afghanistan. More than ever in the lifetimes of most Americans, our flag stands for a true united country. We’ve been united in our grief, and The President’s Radio Address we are united in our resolve to protect our July 6, 2002 people and defeat the enemies of freedom. At this hour, more than 60,000 American Good morning. This week, Americans are troops are deployed around the world in the celebrating the 226th anniversary of our independence. On the Fourth of July, we war against terror. Many of you have family count our blessings, and there are so many members serving in the military. Wherever to count. they are stationed, this Nation is depending We are thankful for the families that share on them, and you can be proud of them. our life in this land of liberty. We’re thankful America’s service men and women and our for the opportunities given to us every day veterans know better than anyone that our in this country. We are thankful for our free- love for country is shown in works. That spirit dom, the freedom declared by the Founding of service is alive and strong in America Fathers, defended by many generations, and today. As we fight a war abroad, at home granted to each one of us by Almighty God. Americans are answering the call of service, Americans know that our country did not giving their time and energy to causes greater come about by chance. Our Nation was first than self-interest. This Nation is confronting designed as a colony, serving an empire and a terrible evil, and we are overcoming evil answering to a king. The Founders had other with good. things in mind. In the summer of 1776, they Today, as much as ever before, America declared that these colonies are, and of right bears the hopes of the world. Yet, from the ought to be free and independent States. All day of our founding, America’s own great Americans can draw a straight line from the hope has never been in ourselves alone. The free lives we lead today to that one moment Founders humbly sought the wisdom and the when the world changed forever. blessing of Divine Providence. May we al- From that day in 1776, freedom has had ways live by that same trust, and may God a home and a defender. Unlike any other continue to watch over the United States of country, America came into the world with a message for mankind, that all are created America. equal and all are meant to be free. Thank you for listening. There is no American race; there’s only an American creed. We believe in the dignity NOTE: The address was recorded at 10:17 a.m. and rights of every person. We believe in on July 3 in the Cabinet Room at the White House equal justice, limited government, and the for broadcast at 10:06 a.m. on July 6. The tran- rule of law, personal responsibility and toler- script was made available by the Office of the ance toward others. This creed of freedom Press Secretary on July 5 but was embargoed for and equality has lifted the lives of millions release until the broadcast. The Office of the Press of Americans, of citizens by birth and citizens Secretary also released a Spanish language tran- by choice. This creed draws our friends to script of this address.

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Statement on the Death of Remarks on Presenting the General Benjamin Oliver Davis, Jr. Congressional Medal of Honor July 6, 2002 Posthumously to Captain Humbert Versace Two days ago, on July 4th, America lost July 8, 2002 a true hero when General Benjamin Oliver Davis, Jr., died at Walter Reed Medical Cen- Good afternoon, and welcome to the ter in Washington, DC. Throughout his ca- White House. It’s a—this is a special occa- reer, General Davis served the cause of free- sion. I am honored to be a part of the gath- dom with distinction and dignity. He will be ering as we pay tribute to a true American sorely missed. On behalf of a grateful nation, patriot and a hero, Captain Humbert Laura and I send our condolences to the ‘‘Rocky’’ Versace. Davis family. Nearly four decades ago, his courage and We will remember General Davis most for defiance while being held captive in Vietnam his leadership of the legendary Tuskegee Air- cost him his life. Today it is my great privi- men during World War II. The segregated lege to recognize his extraordinary sacrifices African American 332d Fighter Group flew by awarding him the Medal of Honor. more than 15,000 sorties against the Nazi I appreciate Secretary Anthony Principi, Luftwaffe, destroyed over 250 enemy air- the Secretary from the Department of Vet- craft, and never lost a single Allied plane fly- eran Affairs, for being here. Thank you for ing under its escort protection. Davis’ leader- coming, Tony. I appreciate Senator George ship and the dazzling success of his Tuskegee Allen and Congressman Jim Moran. I want Airmen contributed greatly to the victory to thank Paul Wolfowitz, the Deputy Sec- over fascism abroad—and to important vic- retary of Defense, and General Pete Pace, tories over discrimination here at home, es- Vice Chairman of the Joint Chiefs, Army pecially the desegregation of the Armed General Eric Shinseki—thank you for com- Services ordered by President Truman in ing, sir. I appreciate David Hicks being here. 1948. He’s the Deputy Chief of Chaplains for the The quiet courage, discipline, and high United States Army. achievement of the Tuskegee Airmen simply I want to thank the entire Versace family mirrored the qualities that Benjamin Davis, for coming, three brothers and a lot of rel- Jr., demonstrated throughout his career. A atives, brothers, Dick and Mike and Steve, graduate of West Point, he was a recipient who’s up here on the stage with me today. of the Silver Star and Distinguished Flying I appreciate the classmates and friends and Cross and was the first African American in supporters of Rocky for coming. I also want the Air Force to earn a star. He retired with to thank the previous Medal of Honor recipi- ents who are here with us today. That would the rank of Lieutenant General and was be Harvey Barnum and Brian Thacker and awarded his fourth star after his retirement Roger Donlon. Thank you all for coming. in 1998. His passing on the date of our Na- Rocky grew up in this area and attended tion’s Independence underscores the inde- Gonzaga College High School, right here in pendence and pride with which he served Washington, DC. One of his fellow soldiers our Nation’s highest ideals. General Davis recalled that Rocky was the kind of person left our country better than he found it and you only had to know a few weeks before his legacy will endure for as long as Ameri- you felt like you’d known him for years. Serv- cans seek to protect—and perfect—our ing as an intelligence adviser in the Mekong Union. Delta, he quickly befriended many of the

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local citizens. He had that kind of person- cited the treaty, chapter and verse, over and ality. During his time there he was accepted over again. into the seminary, with an eye toward even- He was fluent in English, French, and Vi- tually returning to Vietnam to be able to work etnamese and would tell his guards to go to with orphans. hell in all three. Eventually the Viet Cong Rocky was also a soldier’s soldier, a West stopped using French and Vietnamese in Point graduate, a Green Beret who lived and their indoctrination sessions, because they breathed the code of duty and honor and didn’t want the sentries or the villagers to country. One of Rocky’s superiors said that listen to Rocky’s effective rebuttals to their the term ‘‘gung ho’’ fit him perfectly. Others propaganda. Rocky knew precisely what he remember his strong sense of moral purpose was doing. By focusing his captors’ anger on and unbending belief in his principles. him; he made life a measure more tolerable As his brother Steve once recalled, ‘‘If he for his fellow prisoners, who looked to him thought he was right, he was a pain in the as a role model of principled resistance. neck.’’ [Laughter] ‘‘If he knew he was right, Eventually the Viet Cong separated Rocky he was absolutely atrocious.’’ [Laughter] from the other prisoners. Yet even in separa- When Rocky completed his one-year tour tion, he continued to inspire them. The last of duty, he volunteered for another tour. And time they heard his voice, he was singing 2 weeks before his time was up, on October ‘‘God Bless America’’ at the top of his lungs. the 29th, 1963, he set out with several com- On September the 26th, 1965, Rocky’s panies of South Vietnamese troops, planning struggle ended with his execution. In his too to take out a Viet Cong command post. It short life, he traveled to a distant land to was a daring mission and an unusually dan- bring the hope of freedom to the people he gerous one for someone so close to going never met. In his defiance and later his home to volunteer for. death, he set an example of extraordinary After some initial successes, a vastly larger dedication that changed the lives of his fellow Viet Cong force ambushed and overran soldiers who saw it firsthand. His story Rocky’s unit. Under siege and suffering from echoes across the years, reminding us of lib- multiple bullet wounds, Rocky kept pro- erty’s high price and of the noble passion that viding covering fire so that friendly forces caused one good man to pay that price in could withdraw from the killing zone. full. Eventually, he and two other Americans, Last Tuesday would have been Rocky’s Lieutenant Nick Rowe and Sergeant Dan 65th birthday. So today we award Rocky— Pitzer, were captured, bound, and forced to Rocky Versace the first Medal of Honor walk barefoot to a prison camp deep within given to an Army POW for actions taken dur- the jungle. For much of the next 2 years, ing captivity in Southeast Asia. We thank his their home would be bamboo cages, 6 feet family for so great a sacrifice. And we commit long, 2 feet wide, and 3 feet high. They were our country to always remember what Rocky given little to eat and little protection against gave to his fellow prisoners, to the people the elements. On nights when their netting of Vietnam, and to the cause of freedom. was taken away, so many mosquitos would Now, Major, please read the citation. swarm their shackled feet it looked like they were wearing black socks. NOTE: The President spoke at 3:07 p.m. in the The point was not merely to physically tor- East Room at the White House. Following the President’s remarks, Maj. Paul Montanus, USMC, ture the prisoners but also to persuade them Marine Corps Aide to the President, read the cita- to confess to phony crimes and use their con- tion. fessions for propaganda. But Rocky’s captors clearly had no idea who they were dealing with. Four times he tried to escape, the first The President’s News Conference time crawling on his stomach because his leg July 8, 2002 injuries prevented him from walking. He in- sisted on giving no more information than The President. Good afternoon. I hope required by the Geneva Convention and you all enjoyed your weekend in Maine as

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much as I did. And I hope our fellow Ameri- Another key element of economic growth cans all enjoyed a Fourth of July weekend is consumer and investor confidence in our with their family and friends. And now it’s markets and in the integrity of corporate back to work. Congress is coming back into America. And right now, that confidence has Washington, and they’ve got a lot of work been shaken. Tomorrow in New York, I’ll ahead of them before the August vacation. outline tough new laws and actions to punish Congress has been making some important abuses, restore investor confidence, and pro- progress, but it also has a lot of unfinished tect the pensions of American workers. We business. I urge Congress to join me in ad- have a duty to every worker, shareholder, and vancing—join me in acting to achieve and investor in America to punish the guilty, to advance three big goals: We need to win the close loopholes, and protect employee pen- war; we need to protect our homeland; and sions. And we will. The House has acted on we need to strengthen our economy. the pension reforms I proposed in February Winning the war and protecting the home- and on the corporate responsibility proposals land requires a sustained national commit- I made in March. It’s time for the Senate ment. More than 100 days ago, I asked Con- to act in an equally responsive manner. gress to appropriate additional money to equip our Armed Forces and strengthen the As Congress works on all this important security at our airports. Four months later, legislation, it must keep a tight hand on tax- the Department of Defense and the new payers’ money. Excessive Government Transportation Security Administration are spending is a drag, or will be a drag, on our still waiting for the money, and they’ll run economy. Congress is moving forward on the out of operating funds maybe as soon as this proposal for the new Department of Home- week. Congress simply must fund our troops land Security, and it is doing so with speed while they’re fighting a war. And Congress and skill and a constructive spirit of bipar- must provide the funds to improve security tisan cooperation. I hope the Congress will at our airports. Further delay is intolerable. apply the same spirit to other important leg- Congress has got to act. islation. Congress must also pass the defense ap- A safer and more prosperous America can propriations for next year’s budget. The also be a more compassionate country. The House has acted. The Senate must act. Our House has acted to encourage the charity and Nation is at war, and our budget priorities good works of private and religious groups and actions need to reflect that reality. These throughout America. The House has also bills are critical, and quick action on them passed welfare reform that upholds the val- does not and should not preclude simulta- ues of work and family. If the Senate acts, neous progress on other legislation. we will improve the lives of millions of our Creating more jobs and strengthening our fellow citizens. economy are critical priorities. And Congress I know that this is an election year, and can act to create jobs by giving me trade pro- both Republicans and Democrats will be fo- motion authority. Expanding trade means cused on politics. That’s normal during an new jobs for American workers. Congress has election year, but we must not be distracted debated trade now for more than a year. It’s time to stop talking. It’s time to start acting. from the important work that we share. It Congress should act to create American jobs will take a lot of work and bipartisan coopera- before it goes home for the August recess. tion to get important legislation out of the And Congress should act to make us less Congress before they all go home to cam- dependent on foreign sources of energy. paign. The agenda is full; the time is short; Congress has the opportunity to pass legisla- and the Nation is watching. tion that gives America the energy policy it In the coming weeks, I’ll continue to focus needs, one that makes us less dependent on on pursuing the war and protecting the foreign oil and promotes conservation. Reli- homeland and strengthening our economy. able, affordable energy means more and bet- And I urge the Congress to join me in this ter jobs. unfinished business.

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Now I’ll be glad to answer some questions nature. And I’ll do some of that tomorrow you have. Why don’t we start here, David as well. [David Gregory, NBC News]? Yes, Sandra [Sandra Sobieraj, Associated Press]. Corporate Responsibility Smallpox Vaccine Q. Mr. President, in the war on terrorism, Q. Sir, the Government is stockpiling you made it very clear that it’s not just a mat- enough smallpox vaccine for every American, ter of seeking justice for offenders but also but is only planning right now to offer it to preventing another act of terrorism against emergency and health care workers. Why our country. So when it comes to corporate shouldn’t every American be able to evaluate corruption, beyond calling for tough pen- the health risks for themselves and then de- alties, what can you say to investors around cide for themselves to get the vaccine? the country about what this administration The President. Sandra, first of all, I will do to prevent abuses from occurring in haven’t made any decisions as to who’s going the future? to be vaccinated or not. We’re looking at all The President. Well, let me start by tell- options. I think one concern that I can share ing you that I think, by far, the vast majority with you is that if everybody received a vac- of CEOs in America are good, honorable, cine, there are some who—to whom that vac- honest people who have nothing to hide and cine might be fatal. And I worry about that. are willing to let the true facts speak for I worry about calling for a national vaccina- themselves. It’s the few that have stained tion program and that it could cause the loss the—that have created the stains that we of life. And so I’m looking at all options be- must deal with. fore I make up my mind. And tomorrow I’m going to talk about Yes. Yes, sir. some specifics, and I’d rather save those for tomorrow. But let me just put it to you this Harken Energy/2002 Election way: We’ll vigorously pursue people who Q. Mr. President, the Democrats have sig- break the law. And that’s what—and I think naled that they are going to make your be- that will help restore confidence to the havior while a director at Harken an election- American people. year issue. There’s an ad out today which is Q. And prevention, though? What about— relatively new. I know you said this has been how do you prevent this from happening vetted before—I mean, I’ve heard that. But again? would you take on the charge that you were The President. Well, David, there is a— 8 months late with an $850,000 stock sale listen, there had been a period of time when report? everything seemed easy. Markets were roar- The President. First, let me take on the ing; capital was everywhere; and people for- notion that people love to play politics. You got their responsibilities. And as you know— know, you said the Democrats are going to you’ve had to suffer through many of my attack me based upon Harken. That’s nothing speeches—but I have been calling for a re- new. That happened in 1994. I can’t remem- newed sense of responsibility in America. ber if it happened in 1998 or not. It hap- And that includes corporate responsibility, pened in 2000. I mean, this is recycled stuff. because I’m very worried about a country When I—[laughter]. Thank you. [Laughter] that has—that could conceivably lose con- When I made the decision to sell, I filed fidence in the free enterprise system. And what’s called a Form 144. I think you all have I’m an avid backer of the free enterprise sys- copies of the Form 144. It’s an intention to tem, but I also understand that that requires sell, and I did so. And—but as you said, this trust. And we’ve had some destroy the trust has been fully vetted. It has been looked at of the American people, and we need to do by the SEC. You’ve got the documents. something about it. You’ve got the finding where the guy said, In the future, starting—we start with call- ‘‘There is no case here.’’ And it’s just—the ing on people’s—calling on people’s better way I view it is, it’s old-style politics. And

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I guess that’s the way it’s going to be, allowing them to serve again on a board or but—— serve in a CEO capacity of a company. He’s Q. Well, sir, if I might, on the question encouraged what they call disgorgement; in that the Form 4 was 8 months late, why was other words, if somebody has profited based it? upon malicious reporting, or whatever the The President. You know, the important lawyers call it—obviously trying to scam document was the 144, the intention to sell. somebody—they had to give their money That was the important document. I think back. And he’s been very active on that. So you’ve got a copy of it. If you don’t, we’ll I think Pitt’s doing a fine job. be glad to get you one that showed the inten- tion to sell. Former President Clinton/Harken Energy As to why the Form 4 was late, I still haven’t figured it out completely. But never- Q. Sir, you said, in your speech tomorrow theless, the SEC fully looked into the matter. you’re going to talk about some of the ex- They looked at all aspects of it, and they did cesses of the 1990s, when a lot of money was so in a very thorough way. And the people flying around, people were playing a lot of that looked into it said there is no case. And games with money. that was the case in the early nineties; it was The President. That’s right. the case in the ’94 campaign; it was the case Q. You weren’t President then; Bill Clin- in the ’98 campaign. The same thing hap- ton was President. Do you think in some way pened in the 2000 campaign. I guess we’re he contributed to that, set a moral tone in going to have to go through this again in the any way? 2002 campaign, but nothing has changed. The President. No. And the nothing that changed was the fact Q. Can I ask one more—[laughter]? You’d that this was fully looked into by the SEC, not like to expand on that? and there’s no ‘‘there’’ there. You were asked about the SEC and the Helen [Helen Thomas, Hearst News- Harken Energy Company. Democrats are papers]. saying, ‘‘Would you have the SEC release all the papers in connection with that to end SEC Chairman Harvey Pitt all the questions? Would you tell the SEC, Q. Mr. President—— Mr. Pitt, to release those papers?’’ The President. I’m working my way The President. This is old politics, John. around, John [John Cochran, ABC News]. This has been around for a long time. In the Q. ——in a way to clean up the corporate early nineties, key members of Congress world and start the reforms, Senator McCain asked for relevant documents from the SEC is suggesting that you ask for the resignation on this case. They were given the documents. of Harvey Pitt and says that he is inept and You’ve seen the relevant documents. has had to recuse himself so many times in And I want to remind you all that I sold all these cases. What do you think? And are the stock at 4, and 14 months later—the you 1,000 percent behind him? holding period for capital gains, I think, was The President. Very tricky. I support Har- 12 months in those days—the person who vey Pitt. Harvey Pitt has been fast to act. bought my stock could have sold it for 8, He’s been in office less than 12 months, I could have doubled his or her money. think—I mean, he was—we sent him up to Q. Mr. President, you’ve said that you the Senate and was unanimously approved. didn’t know, when you sold your Harken I’m not exactly sure when the vote was. I stock, that the company was going to restate guess it was about a year ago, and every Sen- its earnings. As a member of its audit com- ator said aye on Harvey Pitt—‘‘aye’’ meaning mittee, how could you not know that its earn- that they thought he would do—they thought ings had not been properly accounted for? he was the right man for the job. And I still The President. Because that fact—that think he is. fact came up after I sold the stock. And the He is—in a quick period of time, he has SEC fully looked into this. All these ques- taken 30 CEOs and directors to task by not tions that you’re asking were looked into by

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the SEC. And again, I repeat to you, the sum- 1989 of its Aloha Petroleum subsidiary, mary, which I think you’ve seen—I hope which later caused the SEC to require Hark- you’ve seen it; if not, we’ll be glad to get en to restate its earnings? The sale has been it to you—said there was no case there. described as creating a phantom profit to Yes—working my way down there. hide large losses. How did you see it, sir? And do you think that this transaction hurts Usama bin Laden your credibility on corporate responsibility? Q. Mr. President, first of all, my apology The President. Mike, Mike, this and all for not having the tie, because I have this matters that related to Harken were fully Indian summer suit today. [Laughter] looked into by the SEC. And in this case, The President. That’s okay. Therefore, the system worked. There was a honest dif- you don’t get to ask a question. [Laughter] ference of opinion as to how to account for Q. And second, sir, happy birthday. We a complicated transaction. And that’s what— share the—were born the same day. you’re going to find that in different corpora- The President. Thank you. That’s a fine tions. Sometimes the rules aren’t as specific question. [Laughter] as one would expect. And therefore, the ac- Q. My question is, sir, that we did a survey countants and the auditors make a decision. at India Globe and Asia Today, around the And it is the SEC’s role to make the deter- United States among the Indian-American mination as to whether or not the accounting community and also in India and the Indian procedure used in this particular instance Government. They all support your stand was proper or not. against fighting against terrorism. But the And—let me finish. And they made the question is, sir, are you going to find Usama decision that Harken ought to restate some bin Laden before the first anniversary of Sep- earnings, which Harken did. And that’s how tember 11th? the system is supposed to work. The President. Well, that’s an inter- John [John King, Cable News Network]. esting—his question is about Usama bin Q. If I may ask you, right before the ac- Laden. We haven’t heard from him in a long counting, the sale, itself, of the subsidiary— time. I don’t know if the man’s living or the did you favor that? Were you involved—— man’s dead. But one thing is for certain: The The President. Mike, you need to look war on terror is a lot bigger than one person. back on the directors’ minutes. But all I can And as I told the American people, this is tell you is, is that in the corporate world, going to be a long and—long struggle. And sometimes things aren’t exactly black and we’re making good progress. We’re rounding white when it comes to accounting proce- people up slowly but surely. We’re disrupting dures. And the SEC’s job is to look and is networks. But this is—and these are like to determine whether or not—whether or international criminals, is what they act like. not—whether or not the decision by the They kind of hide and order things up and auditors was the appropriate decision. And then hide again. And we’re just patiently they did look, and they decided that earnings hunting them down. And whether or not ought to be restated, and the company did Usama bin Laden is alive or not, I don’t so immediately upon the SEC’s finding. know. Yes, John. Mike [Mike Allen, Washington Post]. Corporate Responsibility Harken Energy Q. Sir, in that SEC investigation, you Q. Sir? waived attorney-client privilege so that the Q. Mr. President, if I may walk you—— SEC could question Harken attorneys and The President. If you’d have worn a tie, your personal attorneys about your dealings. you could have had a followup. [Laughter] In light of that, do you think it is appropriate Q. If I may ask a question from just before today, given the fact that you say investors the sale of stock that you mentioned, could are nervous about the markets, for senior ex- you please explain your role when you were ecutives of these companies to go before on the board of Harken Oil in the sale of Congress and invoke the fifth amendment

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and refuse to discuss their dealings in con- The President. David, I said in my troversial—and on a related point, one of the speech, ‘‘as security improves.’’ I also will call differences right now between the adminis- upon the Israelis, as security improves, to tration and the Senate bill on corporate re- allow for more freedom of movement by the sponsibility is the Sarbanes proposal to have Palestinian people. this independent board, appointed by the At the same time, we’re working to begin SEC, police the accounting industry. You the reforms necessary amongst the Palestin- have opposed that so far. Are you prepared ians to create enough confidence in all par- today to endorse that? ties so that security will improve as well. The President. Well, let me—I’ll give you Burns—Under Secretary Burns was recently my opinion on that. Look, I think people, there in the Middle East. He’s back to report obviously, if they’re called up, ought to tell this week. Colin Powell will be following up what they know. But lawyers have different on his meetings. opinions. And these people are listening to And I haven’t had the briefing yet, but I the advice of their counsels. believe some progress is being made toward Q. Does it hurt the very market con- the institutions that I talked about that are fidence you’re—— necessary for a Palestinian state to emerge The President. Well, I think what hurts which will give us all confidence in its ability the market confidence is the—in the recent to fight off terrorist activities, in its ability cases, was the inflated numbers. And so peo- to receive international aid without stealing ple look at balance sheets and wonder if the money, its ability to develop a judiciary. they’re real. And what’s very important in the Middle And now, as to the Sarbanes bill, we share East, Dave, is that those institutions evolve the same goals, and I’m confident we can and grow so that the true will of the Pales- get a good piece of legislation out of the Con- tinian people can be reflected in the govern- gress. I too called for an independent board. ment and that the institutions grow and My concern in the Sarbanes bill is that evolve so that there’s, in fact, separation of there’s overlapping jurisdiction, which will power, so that all hopes of the Palestinians make it harder to enforce rules and regula- don’t rest on one person. And I believe we’re tions, not easier. If you have overlapping ju- making some progress there. risdiction, it creates confusion as to who is Go ahead. Followup on Dave. in charge of what. But I’m confident we can Q. With security at its current state, do work that out. I am. I understand you correctly to be saying, if Yes, David [David Sanger, New York things are in its current state, you’re perfectly Times]. We’re skipping around there. comfortable to have the Israelis where they Q. Mr. President, you—— are? The President. Nice tie, though. [Laugh- The President. I would hope that every- ter] body got the message that we all have re- Q. Hope I’m going to get a question. sponsibilities to fight off terrorist attacks. [Laughter] Yes, Ed [Ed Chen, Los Angeles Times]. Situation in the Middle East Bringing Terrorists to Justice Q. You gave your speech on the Mideast Q. Good afternoon. Since shortly after nearly 2 weeks ago now. And after your pre- September 11, you said that you would like vious speech on the Mideast, you repeatedly to see Usama bin Laden, dead or alive. But called on the Israelis to withdraw from the you’ve also said that America is after justice West Bank. You made a brief allusion to that and not revenge. in this most recent speech. You haven’t dis- The President. Right. cussed it since. And of course, they’re still Q. Could you please tell us, to your way there. Should they take your silence as an of thinking, what is the difference? indication that they should stay where they The President. Between justice and re- are, or that they should stay there while venge? I think it’s a difference of attitude. Yasser Arafat is still in power? I mean, I seek justice for the deaths done

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to American people. And it’s—you can be And Tie Man. Let me see, you are— tough and seek justice, Ed. And you can be [laughter]—I don’t have my—‘‘no name,’’ it disciplined and focused and seek justice. But says. Never mind. [Laughter] it’s a frame of mind. We don’t take—we take Q. Tie Man is fine. lives when we have to, to protect the people The President. Thank you. and to hold people accountable for killing thousands, is how I look at it. SEC Chairman Harvey Pitt Ed, and then Jim [Jim Angle, Fox News], Q. Thank you. And I thank you for the and then Tie Man [Ken Bazinet, New York compliment. Earlier you signaled your Daily News]. staunch support for Harvey Pitt, sir. On Au- Q. Thank you. gust 8th, his one year will have come up, and he will no longer have to recuse himself. Iraq Do you think that he should voluntarily recuse himself after that point? Would that Q. Yes, Mr. President, thank you. We con- be appropriate? tinue to see reports on the state of planning The President. I think Harvey Pitt was to get rid of Saddam Hussein in Iraq. I know put in place to clean up a mess, and he’s it’s unlikely that you’ll share any details with working hard to do that. It’s an amazing us, though we’d be delighted to hear them, town, where the man barely got his uniform sir—— on, barely had a chance to perform, and now, The President. Somebody else thinks they for whatever reason, people think he ought are, evidently. [Laughter] to move on, the very ones who voted for him. Q. But I wonder, Mr. President, regardless And I would ask them to look at his record. of when or how, is it your firm intention to And I’m going to—since I’m the decision- get rid of Saddam Hussein in Iraq—— maker, I’m going to give him a chance to The President. Yes. continue to perform. Q. ——and how hard to you think it will Elisabeth [Elisabeth Bumiller, New York be? Times]. The President. It’s the stated policy of Q. Mr. President—— this Government to have regime change. And The President. Your name is not it hasn’t changed. And we’ll use all tools at Elisabeth. our disposal to do so. I actually didn’t read the whole story about Harken Energy somebody down there at level five flexing Q. Thank you. The accounting procedures some know-how muscle, but there’s all at Harken and Aloha have been compared kind—listen, I recognize there’s speculation to what went on at Enron. Would you agree out there. But people shouldn’t speculate with that? about the desire of the Government to have The President. No. a regime change. And there’s ways, different Q. Why not, sir? ways to do it. The President. Well, again, this is—there Q. How involved are you in the planning, was no malfeance involved. This was a honest sir? We know that you meet with General disagreement about accounting procedures. Franks. You meet with Rumsfeld to talk And the SEC took a good look at it and de- about this. How involved are you? cided that the procedures used by the audi- The President. I’m involved. I mean, I’m tors and the accounting firm needed to— involved in the military planning, diplomatic were not the right procedure in this par- planning, financial planning, all aspects of— ticular case or the right ruling and, therefore, reviewing all the tools at my disposal. And— asked Harken to restate earnings, which it but in my remarks to American people, I re- did. I mean, that’s the way the SEC works. mind them I’m a patient person and there’s That’s the proper role of an oversight group. a—but I do firmly believe that the world will There was no malfeance, no attempt to be safer and more peaceful if there’s a re- hide anything. It was just a accounting firm gime change in that Government. making a decision, along with the corporate

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officers, as to how to account for a complex right now is making public the tax returns transaction. of corporations. Would you favor that policy? Q. Can I follow that up, sir? The President. Making public? I’d need The President. No. to look at that. I’ll take a look at that. Yes, Ken [Ken Walsh, U.S. News & World Q. Mr. President—— Report]. The President. Hillman [G. Robert Hillman, Dallas Morning News]. Corporate Responsibility Q. Yes, Mr. President, to put your speech Civil Rights tomorrow in a larger context, at the turn of Q. Yes, Mr. President. The NAACP is the last century, Theodore Roosevelt com- meeting this week in Houston, as you prob- plained about what he called the ‘‘malefac- ably know. And there’s been some criticism tors of great wealth,’’ and he asked, in a very that you’ve not attended their convention famous speech, ‘‘Who shall rule this country, since the 2000 campaign. How would you re- the people,’’ or what he called ‘‘those who spond to that and respond generally to sug- hide behind the breastworks of corporate or- gestions from some critics that your civil ganizations?’’ I wonder if you feel this era rights record in the administration is not a is comparable to that one, and if you feel stellar one? you should respond as aggressively as Roo- The President. Let’s see. There I was, sit- sevelt did to corporate corruption? ting around the leader with—the table with The President. Well, of course, he was foreign leaders, looking at Colin Powell and referring to trusts. I’m referring to a lapse Condi Rice. of ethics, people forgetting the fact that they Yes. represent things other than their own com- pensation packages, however inflated they Anti-Semitism/Situation in the Middle may be, that they have a responsibility to em- East ployees and shareholders. Q. Mr. President, on the Middle East, a And I am—I also understand how tender followup. Realistically, can anything be ac- the free enterprise system can be. If people complished in the Middle East before the lose confidence in the system, it will be hard Palestinian elections? And does the White to attract capital in the markets. And that’s House have anything to say about the rise one reason I’ve reacted so steadily against of anti-Semitism which is sweeping Europe? what I have seen. And I don’t like it a bit, Are you concerned that that could spread to and I’m going to talk about it tomorrow. this country? David asked an interesting question about The President. We’re concerned about how do you prevent things in the future. It’s anti-Semitism anywhere. like asking how do you—if somebody has— And yes, progress can be made. We can doesn’t have that ethical compass, they’ll find help write—encourage the writing of a new ways to cut corners. There are ways that peo- constitution, the reformulation of security ple should hold people accountable. I mean, forces, prepare aid packages that will be dis- investors need to be—pay attention. There bursed if there is transparency. So progress are investor groups that will do that. Obvi- can be made until the elections. ously, boards of directors need to hold CEOs accountable. But if you get a bunch of people Pension Reform together that have no sense of ethics, you’re Q. Mr. President, how do you respond to going to get this kind of behavior. And so the criticism that your administration, and then what the Government must do—and it’s you particularly, are more interested in pro- a legitimate role of Government—is to step tecting the interests of corporate America in and hold people accountable. than the needs of ordinary Americans? The President. What I’m interested in Corporate Tax Returns protecting is the confidence of all Americans Q. Mr. President, one way to establish or in the marketplace, so that people feel com- restore investor confidence being floated fortable investing, because investment means

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jobs; and so that people feel comfortable that And I understand the frustrations of this their savings plans and pension plans are pro- war. Everybody wants to be a war cor- tected. That’s why I put out the pension re- respondent. They want to go out there and form package. see the tanks moving across the plains or the Remember, in February I laid out a pen- airplanes flying in formation and—but that’s sion reform package. And in March I laid not the way this war is going to be fought out 10 steps for good corporate governance, all the time. There’s a lot of actions that take and I’m waiting for Congress to act. And it’s place that you’ll never see. And there’s—and been a while. But listen, I’m a believer in some of it, hopefully, will continue to take the free enterprise system. But I’m also a place as a result of the actions of our friends, strong believer in holding people account- such as that which took place in the Phil- able when they betray the trust of employees ippines. Abu Sayyaf—the leader, evidently, and shareholders. And that’s exactly what was killed by Philippine troops. And that’s we’re going to do. positive. That’s a positive development. Yes, Anne [Anne Kornblut, Boston Globe]. We’re constantly working with nations that might become havens for terrorists, to make Iraq/War on Terrorism sure that there’s no place for them to bunch up or train or to—and it’s—and we’re making Q. On Iraq, can the American people ex- progress. But it’s a long journey, and that’s pect that by the end of your first term you what people have got to know. will have affected a regime change in Iraq, Press Secretary Ari Fleischer. Final one way or another? And by the same question. token—— The President. That’s hypothetical. Role of Securities and Exchange Q. But can the American people expect Commission that? Should they expect that? Q. Mr. President, you mentioned that The President. That’s a hypothetical sometimes the accounting laws are just too question. They can expect me not to answer difficult to calculate. hypothetical questions. The President. No, I said sometimes Q. On Usama bin Laden, does your prom- there’s differences—a ability to interpret one ise still—— way or the other. The President. On sensitive subjects. Q. But isn’t that—wouldn’t that provide [Laughter] a handy excuse to some of the folks who are Q. Sir, on Usama bin Laden, does your involved in these scandals today, who say, promise still hold that he will be caught, dead ‘‘Well, internally we had——’’ or alive, at some point? The President. Sure. Sure, it becomes a The President. What? Say that again? handy excuse. But good prosecutors and a Q. Does your promise on—or your goal strong SEC will determine the difference be- of catching Usama bin Laden dead or alive, tween what becomes a handy excuse by does that still stand? somebody willing to defraud and somebody The President. I don’t know if he is dead who has just a difference of opinion. And or alive, for starters, so I’m going to answer that’s the difference. And that’s the role of your question with a hypothetical. Usama bin the SEC, and that’s why the SEC has to be Laden, he may be alive. If he is, we’ll get strengthened. him. If he’s not alive, we got him. [Laughter] And tomorrow I’ll call for a stronger SEC, But the issue is bigger than one person. more investigators and more budget. But That’s what I keep trying to explain to the that’s precisely what the role of the SEC is, American people. We’re talking about net- and that’s what it does. I know the Demo- works that need to be disrupted, plans that crats are trying to divert attention from the need to be stopped. These people are cold- major goal. And I hope they—I hope we can blooded killers. They’re interested in killing work together to get good legislation out. The innocent Americans, still. And therefore, we important thing is to restore confidence to will continue to pursue them. the economy, and we can. But—go ahead.

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Q. I just wonder if you think then that ica are threatening the financial well-being some of the companies that are in play today of many workers and many investors. At this in terms of scandal could actually be places moment, America’s greatest economic need where the accounting was just—— is higher ethical standards, standards en- The President. Could be. It could be. It’s forced by strict laws and upheld by respon- not my role to judge, or the Congress’ role sible business leaders. to judge. It is the SEC’s role to judge. And The lure of heady profits of the late 1990s that’s why we need a strong and vibrant SEC, spawned abuses and excesses. With strict en- to make those judgments. But I think it’s forcement and higher ethical standards, we pretty clear when somebody is trying to de- must usher in a new era of integrity in cor- fraud. And it’s—when you’ve got an error of porate America. $3.4 billion, I think it was, it’s a pretty clear I want to thank Bill for his introduction. indication that something might be there. There’s nothing like being recycled. [Laugh- But everybody ought to have their day in ter] But thanks for having me, and I’m hon- court. We ought not to rush to judgment on ored to meet your family and Uncle Jack. every single case that comes up. And the [Laughter] SEC ought to do its job and do it well. I appreciate very much Secretary O’Neill Thank you all very much. and Secretary Evans traveling with me today. I want to thank the members of the New NOTE: The President’s news conference began at 5 p.m. in the James S. Brady Briefing Room at York delegation, Senators Schumer and Clin- the White House. In his remarks, he referred to ton as well as Congressman Fossella and Usama bin Laden, leader of the Al Qaida terrorist Congressman Rangel. I appreciate so very organization; Assistant Secretary of State for Near much the mayor—my friend the mayor for Eastern Affairs William J. Burns; and Abu Sabaya, being here to greet me as I came in on the a leader of the Abu Sayyaf terrorist group who chopper. Thank you, Mr. Mayor, and thanks was killed June 21 by Philippine military forces. for the great job you’re doing for New York. Reporters referred to Chairman Yasser Arafat of I’m honored that Cardinal Egan is here. the Palestinian Authority; Gen. Tommy R. Franks, And I appreciate so very much seeing John USA, commander in chief, U.S. Central Com- mand; and President Saddam Hussein of Iraq. Whitehead, the chairman of the Lower Man- hattan Development Corporation. And thank you all for coming as well. Remarks on Corporate The American economy—our economy— Responsibility in New York City is built on confidence, the conviction that our July 9, 2002 free enterprise system will continue to be the most powerful and most promising in the Thank you all. Thank you very much for world. That confidence is well-placed. After that warm welcome. I’m pleased to be back all, American technology is the most ad- in New York City. New York City is a unique vanced in the world. Our universities attract symbol of America’s creativity and character the talent of the world. Our workers and and resilience. In the last 10 months, New ranchers and farmers can compete with any- Yorkers have shown a watching world the body in the world. Our society rewards hard true spirit of your city, a spirit that honors work and honest ambition, bringing people the loss, remembers its heroes, and goes for- to our shores from all around the world who ward with determination and with con- share those values. The American economy fidence. The people of this city are writing is the most creative and enterprising and pro- one of the greatest chapters in our Nation’s ductive system ever devised. history, and all Americans are proud of New We can be confident because America is York. taking every necessary step to fight and win I’ve come to the financial capital of the the war on terror. We are reorganizing the world to speak of a serious challenge to our Federal Government to protect the home- financial markets and to the confidence on land. We are hunting down the terrorists who which they rest. The misdeeds now being un- seek to sow chaos. My commitment and the covered in some quarters of corporate Amer- commitment of our Government is total. We

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will not relent until the coldblooded killers The vast majority of business men and are found, disrupted, and defeated. women are honest. They do right by their We can be confident because of the amaz- employees and their shareholders. They do ing achievements of American workers and not cut ethical corners, and their work helps entrepreneurs. In spite of all that happened create an economy which is the envy of the last year, from the economic slowdown to the world. terrorist attack, worker productivity has Yet high-profile acts of deception have grown by 4.2 percent over the last four quar- shaken people’s trust. Too many corporations ters. In the first quarter of 2002, the econ- seem disconnected from the values of our omy grew at an annual rate exceeding 6 per- country. These scandals have hurt the rep- cent. Though there’s much work left to do, utations of many good and honest companies. American workers have defied the pessimists They have hurt the stock market. And worst and laid the foundation for a sustained recov- of all, they are hurting millions of people who ery. depend on the integrity of businesses for We can be confident because we’re pur- their livelihood and their retirement, for suing pro-growth reforms in Washington, their peace of mind and their financial well- DC. Last year we passed the biggest tax cut being. in a generation, which encouraged job cre- When abuses like this begin to surface in ation and boosted consumer spending at just the corporate world, it is time to reaffirm the basic principles and rules that make cap- the right time. For the sake of long-term italism work, truthful books and honest peo- growth, I’m asking Congress to make the tax ple and well-enforced laws against fraud and reductions permanent. I’m asking Congress corruption. All investment is an act of faith, to join me to promote free trade, which will and faith is earned by integrity. In the long open new markets and create better jobs and run, there’s no capitalism without con- spur innovation. I ask Congress to work with science; there is no wealth without character. me to pass a terrorism insurance bill, to give And so again today I’m calling for a new companies the security they need to expand ethic of personal responsibility in the busi- and to build. And I will insist on—and if need ness community, an ethic that will increase be, enforce—discipline in Federal spending, investor confidence, will make employees so we can meet our national priorities with- proud of their companies, and again regain out undermining our economy. the trust of the American people. We have much to be confident about in Our Nation’s most respected business America. Yet our economy and our country leaders, including many gathered here today, need one more kind of confidence, con- take this ethic very seriously. The Business fidence in the character and conduct of all Roundtable, the New York Stock Exchange, of our business leaders. the NASDAQ have all proposed guidelines The American economy today is rising, to improve corporate conduct and trans- while faith in the fundamental integrity of parency. These include requirements that American business leaders is being under- independent directors compose the majority mined. Nearly every week brings better eco- of the company’s board, that all members of nomic news and a discovery of fraud and audit, nominating, and compensation com- scandal, problems long in the making but mittees be independent, and that all stock now coming to light. We’ve learned of some option plans be approved by the share- business leaders obstructing justice and mis- holders. I call on all the stock markets to leading clients, falsifying records, business adopt these sensible reforms, these common- executives breaching the trust and abusing sense reforms, as soon as possible. power. We’ve learned of CEOs earning tens Self-regulation is important, but it’s not of millions of dollars in bonuses just before enough. Government cannot remove risk their companies go bankrupt, leaving em- from investment—I know that—or chance ployees and retirees and investors to suffer. from the market. But Government can do The business pages of American newspapers more to promote transparency and ensure should not read like a scandal sheet. that risks are honest, and Government can

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ensure that those who breach the trust of in corporate America, we must find and ex- the American people are punished. pose them now, so we can begin rebuilding Bold, well-considered reforms should de- the confidence of our people and the mo- mand integrity without stifling innovation mentum of our markets. and economic growth. From the antitrust I’ve also proposed a 10-point account- laws of the 19th century to the S&L reforms ability plan for American business, designed of recent times, America has tackled financial to provide better information to share- problems when they appeared. The actions holders, set clear responsibility for corporate I’m proposing follow in this tradition and officers, and develop a stronger, more inde- should be welcomed by every honest com- pendent auditing system. This plan is ensur- pany in America. ing that the SEC takes aggressive and affirm- First, we will use the full weight of the ative action. law to expose and root out corruption. My Corporate officers who benefit from false administration will do everything in our accounting statements should forfeit all power to end the days of cooking the books, shading the truth, and breaking our laws. money gained by their fraud. An executive Today, by Executive order, I create a new whose compensation is tied to his company’s Corporate Fraud Task Force, headed by the performance makes more money when his Deputy Attorney General, which will target company does well. That’s fine, and that’s fair major accounting fraud and other criminal when the accounting is above-board. Yet activity in corporate finance. The task force when a company uses deception—deception will function as a financial crimes SWAT accounting to hide reality, executives should team, overseeing the investigation of cor- lose all their compensation—all their com- porate abusers and bringing them to account. pensation—gained by the deceit. I’m also proposing tough new criminal Corporate leaders who violate the public penalties for corporate fraud. This legislation trust should never be given that trust again. would double the maximum prison terms for The SEC should be able to punish corporate those convicted of financial fraud from 5 to leaders who are convicted of abusing their 10 years. Defrauding investors is a serious powers by banning them from ever serving offense, and the punishment must be as seri- again as officers or directors of a publicly ous as the crime. I ask Congress to strength- held corporation. If an executive is guilty of en the ability of SEC investigators to tempo- outright fraud, resignation is not enough. rarily freeze improper payments to corporate Only a ban on serving at the top of another executives and to strengthen laws that pre- company will protect other shareholders and vent the destruction of corporate documents employees. in order to hide crimes. My accountability plan also requires CEOs Second, we’re moving corporate account- to personally vouch for their firms’ annual ing out of the shadows, so the investing pub- financial statements. Currently, a CEO signs lic will have a true and fair and timely picture a nominal certificate and does so merely on of assets and liabilities and income of publicly behalf of the company. In the future, the sig- traded companies. Greater transparency will expose bad companies and, just as impor- nature of the CEO should also be his or her tantly, protect the reputations of the good personal certification of the veracity and fair- ones. ness of the financial disclosures. When you To expose corporate corruption, I asked sign a statement, you’re pledging your word, Congress 4 months ago for funding to place and you should stand behind it. 100 new enforcement personnel in the SEC. And because the shareholders of America And I call on Congress to act quickly on this need confidence in financial disclosures right request. Today I announce my administra- away, the SEC has ordered the leaders of tion is asking Congress for an additional $100 nearly 1,000 large public companies to certify million in the coming year to give the SEC that the financial information they submitted the officers and the technology it needs to in the last year was fair and it was accurate. enforce the law. If more scandals are hiding

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I’ve also called on the SEC to adopt new Yet ultimately, the ethics of American rules to ensure that auditors will be inde- business depend on the conscience of Amer- pendent and not compromised by conflicts ica’s business leaders. We need men and of interest. women of character, who know the dif- The House of Representatives has passed ference between ambition and destructive needed legislation to encourage transparency greed, between justified risk and irrespon- and accountability in American businesses. sibility, between enterprise and fraud. The Senate also needs to act quickly and re- Our schools of business must be principled sponsibly, so I can sign a good bill into law. teachers of right and wrong and not sur- Third, my administration will guard the in- render to moral confusion and relativism. terests of small investor and pension holders. Our leaders of business must set high and More than 80 million Americans own stock, clear expectations of conduct, demonstrated and many of them are new to the market. by their own conduct. Responsible business Buying stock gives them an opportunity to leaders do not jump ship during hard times. build wealth over the long term, and this is Responsible leaders do not collect huge the very kind of responsible investment we bonus packages when the value of their com- must promote in America. To encourage pany dramatically declines. Responsible lead- stock ownership, we must make sure that an- ers do not take home tens of millions of dol- alysts give honest advice and pension plans lars in compensation as their companies pre- treat workers fairly. pare to file for bankruptcy, devastating the Stock analysts should be trusted advisers, holdings of their investors. not salesmen with a hidden agenda. We must Everyone in a company should live up to prevent analysts from touting weak compa- high standards, but the burden of leadership nies because they happen to be clients of rightly belongs to the chief executive officer. their own firm for underwriting or merger CEOs set the ethical direction for their com- advice. This is a flat-out conflict of interest, panies. They set a moral tone by the deci- and we’ll aggressively enforce new SEC rules sions they make, the respect they show their against this practice, rules which take effect employees, and their willingness to be held today. accountable for their actions. They set a And the stock markets should make sure moral tone by showing their disapproval of that the advice analysts give and the terms other executives who bring discredit to the they use have real meaning to investors. business world. ‘‘Buy’’ should not be the only word in an ana- And one of the principal ways that CEOs lyst’s vocabulary, and they should never say set an ethical tone is through their compensa- ‘‘hold’’ when they really mean ‘‘sell.’’ tion. The pay package sends a clear signal Small investors should also not have to whether a business leader is committed to have the deck stacked against them when it teamwork or personal enrichment. It tells comes to managing their own retirement you whether his principal goal is the creation funds. My pension reform proposal would of wealth for shareholders or the accumula- treat corporate executives the same as work- tion of wealth for himself. ers during so-called blackout periods, when The SEC currently requires the annual employees are prohibited from trading in disclosure of the CEO’s compensation. But their own accounts. What’s fair for the work- that information is often buried in long proxy ers is fair for the bosses. statement—proxy statements and seldom My reform proposal gives workers quar- seen—seldom seen—by shareholders. I chal- terly information about their investments. It lenge every CEO in America to describe in expands workers’ access to sound investment the company’s annual report, prominently advice and allows them to diversify out of and in plain English, details of his or her company stock. compensation package, including salary and The House has passed these measures. I bonus and benefits. And the CEO, in that urge the Senate to do the same. Tougher laws report, should also explain why his or her and stricter requirements will help—it’ll compensation package is in the best interest help. of the company he serves.

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Those who sit on corporate boards have chairman, Association for a Better New York; responsibilities. I urge board members to Mayor Michael Bloomberg of New York City; and check the quality of their company’s financial Edward Cardinal Egan, Roman Catholic Arch- statements, to ask tough questions about ac- diocese of New York. The Office of the Press Sec- counting methods, to demand that audit retary also released a Spanish language transcript of these remarks. firms are not beholden to the CEO, and to make sure the compensation for senior ex- ecutives squares with reality and common Executive Order 13271— sense. And I challenge compensation com- Establishment of the Corporate mittees to put an end to all company loans Fraud Task Force to corporate officers. Shareholders also need to make their July 9, 2002 voices heard. They should demand an atten- tive and active board of directors. They By the authority vested in me as President should demand truly independent directors. by the Constitution and the laws of the They should demand that compensation United States of America, and in order to committees reward long-term success, not strengthen the efforts of the Department of failure. Shareholders should demand ac- Justice and Federal, State, and local agencies countability not just in bad times but espe- to investigate and prosecute significant finan- cially in boom times, when accountability fre- cial crimes, recover the proceeds of such quently breaks down. Shareholders are a crimes, and ensure just and effective punish- company’s most important constituency, and ment of those who perpetrate financial they should act like it. crimes, it is hereby ordered as follows: The 1990s was a decade of tremendous Section 1. Establishment. The Attorney economic growth. As we’re now learning, it General shall immediately establish within was also a decade when the promise of rapid the Department of Justice a Corporate Fraud profits allowed the seeds of scandal to spring Task Force (Task Force). Without regard to up. A lot of money was made, but too often any other provision of this order, the Task standards were tossed aside. Yet the Amer- Force shall be subject to the authority of the ican system of enterprise has not failed us. Attorney General under applicable law. Some dishonest individuals have failed our Sec. 2. Membership and Operation. Sub- system. Now comes the urgent work of en- ject to section 4 of this order, the Task Force forcement and reform, driven by a new ethic shall have the following members: of responsibility. (a) the Deputy Attorney General, who We will show that markets can be both shall serve as Chair; dynamic and honest, that lasting wealth and (b) the Assistant Attorney General (Crimi- prosperity are built on a foundation of integ- nal Division); rity. By reasserting the best values of our (c) the Assistant Attorney General (Tax Di- country, we will reclaim the promise of our vision); economy. (d) the Director of the Federal Bureau of Leaders in this room help give the free Investigation; enterprise system an ethical compass, and (e) the United States Attorney for the the Nation respects you for that. We need Southern District of New York; that influence now more than ever. I want (f) the United States Attorney for the East- to thank you for helping to restore the peo- ern District of New York; ple’s trust in American business. I want to (g) the United States Attorney for the thank you for your love of the country. And Northern District of Illinois; I want to thank you for giving me the chance (h) the United States Attorney for the to come and address you today. Eastern District of Pennsylvania; May God bless you all. (i) the United States Attorney for the Cen- NOTE: The President spoke at 11:20 a.m. in the tral District of California; Regent Ballroom at the Regent Wall Street Hotel. (j) the United States Attorney for the In his remarks, he referred to William Rudin, Northern District of California;

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(k) the United States Attorney for the (ii) action to enhance cooperation among Southern District of Texas; and Federal, State, and local authorities (l) such other officers or employees of the responsible for the investigation and Department of Justice as the Attorney Gen- prosecution of significant financial eral may from time to time designate. crimes; The Deputy Attorney General shall con- (iii) changes in rules, regulations, or policy vene and direct the work of the Task Force to improve the effective investigation in fulfilling all its functions under this order. and prosecution of significant finan- The Deputy Attorney General may permit, cial crimes; and when he deems it appropriate, the designee (iv) recommendations to the Congress re- of a member of the Task Force, including garding such measures as the Presi- those designated under section 4 of this dent may judge necessary and expe- order, to participate in lieu of the member. dient relating to significant financial The Deputy Attorney General shall convene crimes, or the investigation or pros- the first meeting of the Task Force within ecution thereof. 10 days of the date of this order and shall Sec. 4. Additional Participation for Speci- thereafter convene the Task Force at such fied Functions. In the Task Force’s perform- ance of the functions set forth in subsection times as he deems appropriate. 3(c) of this order, and to the extent permitted Sec. 3. Functions. Consistent with the by law, the following officers of the executive constitutional authority of the President, the branch shall be members of the Task Force authorities assigned to the Attorney General in addition to such other officers of the Fed- by law, and other applicable law, the Task eral Government as the Deputy Attorney Force shall: General deems appropriate: (a) provide direction for the investigation (a) the Secretary of the Treasury; and prosecution of cases of securities fraud, (b) the Chairman of the Securities and Ex- accounting fraud, mail and wire fraud, money change Commission; laundering, tax fraud based on such predicate (c) the Chairman of the Commodities Fu- offenses, and other related financial crimes tures Trading Commission; committed by commercial entities and direc- (d) the Chairman of the Federal Energy tors, officers, professional advisers, and em- Regulatory Commission; and ployees thereof (hereinafter ‘‘financial (e) the Chairman of the Federal Commu- crimes’’), when such cases are determined by nications Commission. the Deputy Attorney General, for purposes Sec. 5. Internal Management Purpose. of this order, to be significant; This order is intended to improve the inter- (b) provide recommendations to the Attor- nal management of the Federal Government. ney General for allocation and reallocation This order is not intended to, and does not, of resources of the Department of Justice for create any right or benefit, substantive or investigation and prosecution of significant procedural, enforceable at law or equity or financial crimes, recovery of proceeds from otherwise against the United States, its de- such crimes to the extent permitted by law, partments, agencies, entities, instrumental- and other matters determined by the Task ities, officers, or employees, or any other per- Force from time to time to be of the highest son. priority in the investigation and prosecution Sec. 6. Termination. The Task Force shall of such crimes; and terminate when directed by the President or, (c) make recommendations to the Presi- with the approval of the President, by the dent, through the Attorney General, from Attorney General. time to time for: George W. Bush (i) action to enhance cooperation among The White House, departments, agencies, and entities of July 9, 2002. the Federal Government in the inves- tigation and prosecution of significant [Filed with the Office of the Federal Register, financial crimes; 11:15 a.m., July 10, 2002]

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NOTE: This Executive order was published in the creating operas,’’ Placido has said, ‘‘lots of Federal Register on July 11. suffering and lots of sweating.’’ Well, by suf- fering and sweating himself, Placido Do- mingo is making sure that the great music Remarks on Presenting the of the past will continue to delight opera Presidential Medal of Freedom lovers the world over. July 9, 2002 The week after September the 11th, Peter Drucker sent a letter to his friends and asso- The President. Please be seated. Thank ciates urging them ‘‘not to abandon daily life you all very much. Good afternoon, and wel- and civil society. That’s exactly what the ter- come to the White House. Laura and I are rorist wants,’’ he said. Peter Drucker has de- honored to welcome our recipients and fam- voted his life to strengthening civil society. ily members and friends to the people’s His determination to help our nonprofit and house. faith-based institutions carry out their des- As we honor today’s Presidential Medal of perately needed missions more effectively Freedom winners, I want to acknowledge the has made him one of the greatest manage- presence of our great Secretary of State, ment experts of our time. Colin Powell, and his wife, Alma. Secretary Katharine Graham was a forceful, coura- Powell has won the Presidential Medal of geous, and deeply principled newspaper pub- Freedom twice—once with distinction. I’m lisher. She described herself as someone who not sure what happened the other time. suffered from a sense of inferiority but who [Laughter] was forced to become a leader after her hus- The Presidential Medal of Freedom is the band’s death. ‘‘What I essentially did,’’ she highest civil honor our Nation can bestow, wrote, ‘‘was to put one foot in front of the and we award it today to 12 outstanding indi- other, shut my eyes, and step off the edge.’’ viduals. The men and women we honor span Under her brilliant guidance, the Wash- the spectrum of achievement. Some are ington Post has become one of America’s fighters; others are healers; all have left an most powerful newspapers. Katharine enduring legacy of hope and courage and Graham will always be remembered for her achievement. determined pursuit of journalistic excellence. Hank Aaron overcame poverty and racism D.A. Henderson is a great general in man- to become one of the most accomplished kind’s war against disease. From 1966 to baseball players of all time. ‘‘When I was in 1977 he led the World Health Organization’s a ballpark,’’ he said, ‘‘I felt like I was sur- global smallpox eradication campaign. Today, rounded by angels, and I had God’s hand he is helping protect America from the threat on my shoulder.’’ By steadily pursuing his of bioterrorism. ‘‘We need to plan, not calling in the face of unreasoning hatred, panic,’’ says this master medical planner. Our Hank Aaron has proven himself a great Nation is fortunate to be able to draw on human being, as well as a great athlete. D.A. Henderson’s great store of wisdom and Bill Cosby is a gifted comedian who has experience as we work to lift the dark threat used the power of laughter to heal wounds of terrorism from the nation and our world. and to build bridges. ‘‘I don’t think you can Irving Kristol is a wide-ranging thinker bring the races together by joking about the whose writings have helped transform Amer- differences between them,’’ he said. ‘‘I’d ica’s political landscape. As young men, he rather talk about the similarities, about and his fellow student radicals in City Col- what’s universal in their experiences.’’ By fo- lege’s ‘‘alcove number one,’’ devoted them- cusing on our common humanity, Bill Cosby selves to solving the ultimate problems of the is helping to create a truly united America. human race. Today, Irving Kristol is still Placido Domingo has performed in more grappling with ultimate problems, and in roles than any other tenor in the history of thinking them through, he has vastly en- opera. His boundless admiration for the com- larged the conservative vision. posers of the great operatic music makes him Shortly after he arrived on South Africa’s push himself to the limit. ‘‘They spend years Robben Island to begin serving his prison

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sentence for resisting apartheid, Nelson Middle East have truly made him his broth- Mandela refused an order to jog from the er’s keeper. harbor to the prison gate. When a prison war- Each of these men and women has en- den threatened to kill him, here’s what he riched the life of America and the world. And said: ‘‘If you so much as lay a hand on me, we’re honored to have them with us here I will take you to the highest court in the today. land, and when I finish with you, you’ll be And now the military aide will call each as poor as a church mouse.’’ [Laughter] The of the winners forward and read their cita- warden backed off and so, eventually, did tions. other, more powerful representatives of [At this point, Maj. James M. McAllister, apartheid—all of whom were humbled by USA, Army Aide to the President, read the Mandela’s immense moral authority. It is this citations, and the President presented the moral stature that has made Nelson Mandela medals.] perhaps the most revered statesman of our The President. Again, I want to thank you time. all for coming to honor such remarkable men Gordon Moore is a great businessman and and women. The Presidential Medal of Free- innovator. His interest in science was sparked dom, established by President Kennedy in by a chemistry set when he was a boy. ‘‘With 1963, recognizes individuals who have made the chemistry set,’’ he recalls, ‘‘I had to get ‘‘an especially meritorious contribution to the a good explosion at the end, or I wasn’t security or national interests of the United happy.’’ [Laughter] In the worlds of business, States, or to world peace, or to cultural or science, and philanthropy, Gordon Moore other significant public or private endeav- has been setting off explosives ever since. ors.’’ I’m sure you’ll agree that today’s Presi- And the ripple effects of his explosive genius dential Medal of Freedom recipients richly have helped create our age of information. deserve their honor. Nancy Reagan has devoted herself to her And now, Laura and I would like to invite family and her country. As first lady of Cali- you all to join us for a reception in honor fornia, she spoke out eloquently on behalf of today’s distinguished Presidential Medal of POWs and American servicemen missing of Freedom recipients, in the room back here in action. As First Lady of the United States, in the back. she has led an antidrug campaign—she led May God bless our recipients, and may an antidrug campaign that helped reduce God bless you all. teenage drug abuse. Today we honor Nancy Reagan for her eloquent example of loyalty NOTE: The President spoke at 3:05 p.m. in the East Room at the White House. and courage and abiding love. Fred Rogers has proven that television can soothe the soul and nurture the spirit and Letter to Congressional Leaders teach the very young. ‘‘The whole idea,’’ says Transmitting an Account of Federal the beloved host of Mr. Rogers’ Neighbor- Expenditures for Climate Change hood, ‘‘is to look at the television camera and Programs and Activities present as much love as you possibly could July 9, 2002 to a person who needs it.’’ This message of unconditional love has won Fred Rogers a Dear Mr. Chairman: very special place in the heart of a lot of In accordance with section 559(b) of the moms and dads all across America. Foreign Operations, Export Financing, and A.M. Rosenthal’s calling is journalism; his Related Programs Appropriations Act, 2002 passion is human rights. ‘‘When I come out (Public Law 107–115), I transmit herewith for human rights,’’ he says, ‘‘I’m not talking an account of Federal expenditures for cli- in the abstract. I know that if I lived in a mate change programs and activities. This re- dictatorship, I would be in jail very quickly.’’ port includes both domestic and inter- A.M. Rosenthal’s outspoken defense of per- national programs and activities related to secuted Christians in Asia, Africa, and the climate change, and associated costs by line

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item as presented in the President’s Budget Any reference in this memorandum to sec- Appendix. tion 2 of the MRAA, as amended, shall be Sincerely, deemed to include references to any here- after-enacted provision of law that is the George W. Bush same or substantially the same as such provi- NOTE: Identical letters were sent to Robert C. sion. Byrd, chairman, Senate Committee on Appropria- You are authorized and directed to publish tions, and C.W. Bill Young, chairman, House this Determination in the Federal Register. Committee on Appropriations. George W. Bush

Memorandum on Delegation of NOTE: This memorandum was released by the Of- Authority Concerning Refugee fice of the Press Secretary on July 10. Assistance July 9, 2002 Memorandum on the 2002 Combined Federal Campaign of the Presidential Determination No. 2002–25 National Capital Area Memorandum for the Secretary of State July 9, 2002 Subject: Delegation of Authority under Memorandum for the Heads of Executive Sections 2(d) and 2(f) of the Migration and Departments and Agencies Refugee Assistance Act of 1962, as amended Subject: 2002 Combined Federal Campaign By virtue of the authority vested in me by of the National Capital Area the Constitution and laws of the United I am delighted that the Secretary of Agri- States, including section 301 of title 3 of the culture, Ann M. Veneman, has agreed to United States Code, I hereby delegate the serve as the Chair of the 2002 Combined functions and authorities conferred upon the Federal Campaign (CFC) of the National President by sections 2(d) and 2(f) of the Mi- Capital Area. I ask you to enthusiastically gration and Refugee Assistance Act (MRAA) support the CFC by personally chairing the of 1962, as amended, 22 U.S.C. § 2601, inso- campaign in your agency and appointing a far as they relate to actions taken under the top official as your Vice Chair. authority of section 2(b) (2) of the MRAA, The Combined Federal Campaign is an to the Secretary of State, who should insure important way for Federal employees to sup- timely performance of any duties and obliga- port thousands of worthy charities. Public tions of the delegated authority and who is servants not only contribute to the campaign authorized to redelegate these functions and but also assume leadership roles to ensure authorities consistent with applicable law. its success. The Secretary of State, or his or her delegate, Your personal support and enthusiasm will is directed to provide notice to the President help positively influence thousands of em- of any use of the functions and authorities ployees and will guarantee another successful delegated by this determination. campaign. This delegation of authority supplements Presidential Determination No. 99–6, Dele- George W. Bush gation of Authority Under Section 2(b) (2) of the Migration and Refugee Assistance Act NOTE: This memorandum was released by the Of- of 1962, as amended (November 30, 1998). fice of the Press Secretary on July 10.

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Memorandum on Electronic prior to September the 11th. You’re working Government’s Role in Implementing really hard now, and the American people the President’s Management Agenda appreciate it a lot, and so do I. July 9, 2002 You know, the amazing thing about Amer- ica is, our Nation is stronger today than it Memorandum for the Heads of Executive was before the enemy hit. I like to remind Departments and Agencies people, they must have not understood who they were dealing with. They probably Subject: Electronic Government’s Role in Implementing the President’s Management thought we might file a lawsuit or two— Agenda [laughter]—but they didn’t understand the character of the American people, the My Administration’s vision for Govern- strength and resolve of our great land to de- ment reform is guided by three principles. fend that which we hold dear, which is free- Government should be citizen-centered, re- dom. Nor did they understand the energy sults-oriented, and market-based. These and drive of the people who work on behalf principles have been woven into the five of the American people to do everything we Government-wide reform goals outlined in can—and I say ‘‘we’’—we can, to protect and my Administration’s Management Agenda: guard our people. And that’s what’s hap- strategic management of human capital, pening today in America, and I want to thank budget and performance integration, com- you for your dedication. petitive sourcing, expanded use of the inter- And we’ve got to do more. We’ve got to net and computer resources to provide Gov- move forward. We’ve got to seize the mo- ernment services (Electronic-Government or ment to do everything we can to assure the E-Government), and improved financial American people that our Government and management. Effective implementation of the fine folks who work on behalf of the tax- E-Government is important in making Gov- ernment more responsive and cost-effective. payers are working in a smart way, in a dedi- Our success depends on agencies working cated way. as a team across traditional boundaries to And today I want to talk some about the better serve the American people, focusing creation of the Department of Homeland Se- on citizens rather than individual agency curity and why it’s important to our country. needs. I thank agencies who have actively en- And I call upon your continued sense of duty gaged in cross-agency teamwork, using E- to our country as we develop the new plans. Government to create more cost-effective Oh, it’s not going to be easy, and the chal- and efficient ways to serve citizens, and I lenges are going to be great. But there’s no urge others to follow their lead. doubt in my mind that we’ll do what’s nec- essary—do what’s necessary—to protect George W. Bush America. I want to thank Chung for her introduc- NOTE: This memorandum was released by the Of- fice of the Press Secretary on July 10. tion. Backstage, we had a picture taken. I said, ‘‘Only in America’’—only in America do we have somebody as dedicated as—people Remarks to Federal Employees on like Chung, who are willing to sacrifice on the Proposed Department of behalf of the United States of America, use Homeland Security their time and talent and energy like every- July 10, 2002 body in this hall to work for others. So, Chung, thanks for your hard work, thanks for Thank you all very much. Please be seated. your dedication to your job, and thanks for Thank you. Thanks for that warm welcome. representing the good folks in this hall. It’s such a pleasure to be here today, and When I go back to Crawford, people say— I want to thank you all for coming. I’m here or I see my friends from Texas, they say, to thank each one of you for your dedication ‘‘Gosh, it must be hard to be the President.’’ to the country we all love. You worked hard I say, ‘‘Well, not really, if you’ve got a good

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team.’’ And I’ve put together a great team. for people to worship the way they want to You all are a part of that team. or speak their mind or to print an article the Today some of the generals of the team way they want to print it.’’ And the people are here, people such as Tom Ridge, who who stand up for freedom, they’re going to is adviser to Homeland Security. He’s done be threatened by these killers. a great job. He left being the Governor of And it’s time for us to continue to act deci- the great State of Pennsylvania to come and sively and to be patient and to be resolute. serve the Nation, and I want to thank you, It means all the parts of our Government Tom, for your dedication to the country. must continue to cooperate. And you all have Some of my Cabinet members are here. done that, and I want to thank you for the The Secretary of State of the United States level of cooperation that has taken place in of America, Colin Powell; our great Attorney a fragmented Government. It’s a—and we’re General, John Ashcroft, is here. The Sec- making progress; we really are. retary of Agriculture, Ann Veneman, is here. First, we’re hunting down the killers wher- Secretary of Transportation Norm Mineta; ever they try to hide, and we’re bringing the Energy Secretary, Spence Abraham, is them to justice. Sometimes you’ll read about here. Thank you for being here, Spence. it in your newspapers or see it on the—you Christie Todd Whitman, who runs the EPA, know, on all these TV shows, and sometimes is with us today. Thank you, Christie Todd. you won’t. But what is for certain is, we’ve The prettiest person in our administra- got a great military who are doing everything tion—[laughter]—of FEMA, Joe Allbaugh; I they can to hunt the killers down, one person want to thank Kay James, who’s the Director at a time, and bring them to justice. And of Office of Personnel Management, for that’s exactly what this Government will con- coming. I appreciate you being here, Kay. tinue to do. I know Stephen Perry of the GSA is here. These are shadowy killers, and we’re treat- I see Brian Stafford, who’s running the Se- ing them just as they are—as international cret Service. I see the head of the Coast crooks, international criminals. And they’ll— Guard; I see Magaw, John Magaw. Thank you know, these are the kind of folks that you all for coming. I appreciate you all being will slip into a city and try to hide, or they’ll here. go to a cave. And then they’ll send some And I want to thank the Members of Con- youngster to his death, and they, themselves, gress who are here. I appreciate you working of course, won’t choose that route, for some with us. I appreciate you’re here to celebrate reason. They don’t want to show up, because the dedication of the fine people that we’re they know, if they show up, we’ll get them. fortunate enough to have working in our And it’s just a matter of time. It’s just a mat- Government. ter of time. They made a mistake; they at- You know, the threats we face are real. tacked a great nation. And this Nation will I mean, it is real. I like to remind people do whatever it takes to defend freedom and that I’m an early morning guy. I get to the to bring people to justice. Oval Office about—oh, generally about 6:50 We’re making progress overseas; we’re or so. It’s not a very long commute. [Laugh- making progress at home. We strengthened ter] And I sit at the great desk that other our aviation security, and we’re tightening Presidents have used—Teddy and Frank, our borders. We’re stockpiling medicines to and—I can call them that, since—[laughter]. defend against bioterrorism. We’re improv- And Spot the dog comes in with me, and ing information-sharing amongst our intel- I read a threat assessment. The fact that the ligence agencies. We’re taking new steps to enemy is still interested in hurting America, protect critical infrastructure. But the impor- I read that every morning. And I take it seri- tant thing for the American people to know ously, and I know you do as well. is that our public servants are working longer This is a threat that not only affects Amer- hours and working harder and working ica; it affects anybody who loves freedom, smarter to defend the American people. anybody who’s willing to stand up and say, We will win the war on terror—no doubt ‘‘We value freedom. We value the freedom in my mind—thanks to the heroism of our

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fighting troops and thanks to the patriotism story of Chantice James. It’s a really inter- of our people and thanks to the hard work esting story, because she is one of the first of Government officials here at home. There U.S. Customs inspectors ever to work abroad have been some extraordinary stories about for the sole purpose of protecting America some in your ranks—many in your ranks. and other countries from weapons of mass And I want to share some of the stories with destruction—weapons of mass destruction you so the American people fully understand that could be concealed in cargo. the dedication of the people throughout our We take these threats very seriously. We Government. worry about weapons of mass destruction. Tom Armas is a special agent in the Secret And so we’ve asked Chantice James to leave Service. On September the 11th, after help- her family to move to Vancouver, Canada, ing to evacuate the agency’s New York field where she’s been for the past 5 months. She office at Seven World Trade Center, he pro- and her Canadian counterparts are reviewing ceeded into the damaged North Tower and all shipments ultimately destined for the up the stairwell to the 40th floor, where he United States that comes through that port. worked to help the seriously wounded. After She has assisted in training additional U.S. being turned back by raging fire, he contin- Customs inspectors, sharing her skill and tal- ued his efforts in the North Tower lobby and ent and knowledge, who are now deployed then on the street. Eventually, Tom was in Halifax and Montreal. She’s developing forced to evacuate the area because of thick techniques that will be used around the smoke and, of course, falling debris. Yet, world. She’s using her time and talent and even while leaving, he continued to help oth- efforts to help us assure the American people ers. In the midst of chaos, he was a calm that we’re doing everything we can to protect and steady soldier, at one point carrying a the homeland, and Chantice, thank you for woman to the safety of a nearby emergency your service as well. vehicle. You see, this is the meaning of public serv- These are just some of the examples of ice, as you all have shown the American peo- the extraordinary service that’s taking place. ple, a willingness to go the limit, and then You probably have got your own stories to some more, for the sake of your fellow citi- tell. You’ve got examples of people, perhaps zens. Tom, thank you very much for your yourself, who have taken an extra step on service to the country. behalf of the American people, and I want David Hart has been a FEMA individual to thank you for that, and so do the American assistance reservist for many years. He had people. You see, we’re all part of the war a variety of responsibilities related to Sep- on terror, and that’s what’s important to un- tember the 11th in New York, including mak- derstand, a new kind of war. ing sure that victims received assistance This is an historic campaign. It’s a little quickly, make sure that there was staffing at different, but it does point up the fact that the assistance centers and that there was public service in America today is not just proper training for people who were willing another job. It is an important act of citizen- to help. Throughout this emergency, David ship. It is a way to fulfill our obligation to was responsible for monitoring the individual those who have gone before us, to those who assistance programs. He worked with the will follow us, and to those who have sac- contract inspectors and others and was a rificed and died for us. That’s how I view troubleshooter for a wide variety of prob- your job and my job. lems. He performed with great skill and We owe a huge debt of gratitude to those boundless determination. He showed com- public servants who, I like to say, quietly passion to people in need. He put the best stand guard on the ramparts of freedom. We face on our Government for people who suf- owe something else as well. We owe all of fered. And David, we appreciate your service you a concerted effort to do what it takes to America as well. to make your efforts more effective. And We serve our citizens in all kinds of ways, that’s why I proposed the Department of in different methods. Take, for example, the Homeland Security.

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At present, there are over 100 different We’ll bring our best scientists and develop Federal agencies with a role in what we call technologies to detect biological, chemical, homeland security. And that means, despite and nuclear weapons, and to develop the everybody’s best intentions and hard work drugs and treatments necessary to protect and sacrifice, there is a dispersal of authority, our citizens. This is an historic opportunity, a lack of accountability, and the truth of the not only to deal with the immediate but to matter is, a needless drain on critical re- leave a legacy of better medicines and better sources. There’s, to put it bluntly, an overlap cures on behalf of the American people. of administration, a duplication of adminis- And finally, for the first time, this new De- tration. partment will merge under one roof the ca- And Congress—and so that’s why I did pability to identify and assess threats to the what I did. And I understand it’s hard to homeland, to map those threats against our make changes in Washington, DC. I under- vulnerabilities, and to do what’s necessary to stand that people kind of get set in their ways secure America. and want to guard turf, and I know that. But Congress is reacting positively to the initia- there is an overriding and urgent mission tive, and I want to thank the Members of here in America today, and that’s to protect Congress. See, this isn’t a Republican idea; our homeland. We have been called into ac- this isn’t a Democrat idea; this is an Amer- tion, and we’ve got to act. ican idea that makes sense for all Americans. I understand the challenges that we face. The Department of Homeland Security I accept the challenges. I’m not going to let will foster a new culture in the Nation’s Cap- it stop us, and neither should you. This is ital, and it will be a culture of cooperation. the most significant reorganization since Sure, there’s cooperation now. But when 1947—of Government—when President you’ve got 100 agencies dispersed throughout Harry Truman decided to reorganize the De- Washington, we can do a better job of co- fense Department. operation. By uniting essential agencies that Congress, as they work with us, must give will work closely together, it will give new us the flexibility necessary to achieve our ob- tools to meet new challenges. It will help set jectives. I call it freedom to manage. The new priority. Listen, all of you are in agencies that Department must be able to get the right have got more than one priority, but the sin- people in the right place at the right time gle most important priority is to protect the with the right pay. We need to be able to homeland now in America. We’re at war. reward excellence and ensure accountability We’re in a different kind of war than we’re for individual performance. A lot will be ex- used to. There’ll be moments where it seems pected of us, and I expect Congress to give like we’re not at war, but we’re at war until the executive branch the—give us the flexi- we win. And therefore, we must do every- bility necessary to achieve our objectives. thing we can to funnel resources and to set I’m here to let you know that there’s no priorities to protect the American people. It question in my mind we can achieve what is by far our most important challenge. we need to achieve, particularly when we The Department of Homeland Security work together. I want you to think about the will be charged with four primary tasks: to Department of Homeland Security in this control our borders and prevent terrorists sense. Twenty years from now, if we’re still and weapons from entering the country—lis- standing—individually, that is—you can look ten, we need to know who’s coming in, and back and say, ‘‘I was part of not only winning why they’re coming in, and if they’re leaving, the war on terror, but I was part of working when they’re supposed to be leaving. And together to leave behind a legacy, a legacy if they’re not leaving, we need to know why of a more secure homeland so a future Presi- they’re not leaving. dent or a future Congress or a future agency We need to work with State and local au- head can better address the true threats of thorities to respond quickly and effectively the 21st century that will face our children to emergencies, and that’s important. All lev- and our children’s children.’’ That’s really els of government must work together. what we’re talking about today.

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This is an historic moment, a fantastic op- NOTE: The President spoke at 10:28 a.m. at DAR portunity. History has called us into action. Constitution Hall. In his remarks, he referred to History has put the spotlight on America. Chung K. Marston, research biologist, Centers for History has—people are saying, ‘‘What is this Disease Control and Prevention, who introduced the President. country all about?’’ Well, I’ll tell you what we’re about. We’re going to do what’s nec- essary to say—to do our most important job. Remarks on Prescription Drugs in We are can-do people. We see a problem; Minneapolis, Minnesota this is a country that works to solve it. And July 11, 2002 that’s what’s going to happen, thanks to your hard work and dedication. Thank you all very much for that warm And I’ll tell you what else is going to hap- welcome. I appreciate you coming out today pen. We’re going to win the war on terror, and giving me a chance to talk about how no matter how long it takes. It is a—first of do we work together to make America a more all, we do what we do because there’s others secure place and a better place for all of us. coming up in our society. The dedication and And part of making sure America is a better sacrifice you all make is because you under- place for each and every one of us and a stand that you’re working for other people, more secure place is to make sure we’ve got particularly young—youngsters, youngsters a health care system that is responsive and who want to enjoy the same life we have in vibrant and alive and well and a place—a sys- America, a life of freedom, a life—a chance tem that will really relate to each and every to realize your dreams. And we’re doing what one of us as an individual, give each and we’re doing because you all understand that every one of us a chance, as we grow older, a full life is one that serves something greater to have a health care system that we can be than yourself. Otherwise, you wouldn’t have proud of and confident in. signed on for Government service in the first That’s why I started my day here in Min- place. nesota at the University of Minnesota Med- ical School. You were probably wondering I believe the culture in the country is why Yudof was relevant. [Laughter] That’s changing. Oh, I know there’s a lot of folks because he hosted me at a fine medical that worry only about themselves and their school. And there I had the honor and oppor- balance sheets and how well they’re doing. tunity to talk to some fellow Minnesotans But I do believe that, as a result of the evil about how to advance medicine, some of the done to America, a lot of Americans are step- research that was taking place. I talked to ping back and taking a hard look at what’s some patients and heard from some of our important in life. elderly about how—what kind of system was They remember the example of Flight 93, necessary to have the quality of life that we average Americans flying across the country. want for each and every one of us. They learned their plane would become a It’s—the key is to make sure that we ad- weapon. They told their loved ones they vance medicine in a way that makes sure that loved them and goodbye. They said a prayer, our citizens get access to new drugs, new life- and they drove the plane in the ground, the saving drugs, unbelievably innovative drugs ultimate symbol of serving something greater that have changed medicine as we know it. than yourself, the ultimate act of sacrifice, And it starts with making sure our seniors to serve somebody and something, a cause have got a guarantee of a prescription drug greater than themselves. coverage in Medicare. That’s where it ought And that’s what we’re here talking about to start. It ought to start with our seniors, today—good, honorable, honest Americans who have paid their dues. working hard to serve something greater than And as we do so, as we look at Medicare yourself. And that something is the greatest to make sure it includes prescription drugs, country on the face of the Earth. we must make sure that whatever system Thank you for your sacrifice. God bless evolves does not undermine the great innova- you all. tions which take place in America. And that’s

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important to remember, that as we debate I called up my friend Mark Yudof and in- this issue in Congress, as Congress debates vited myself here because Minnesota is one the issue—and of course I’m watching atten- of the leading centers of health care innova- tively—[laughter]—that we do not under- tion in our country. And that’s saying a lot. mine the great strength of the American sys- People come from all around the world to tem, which is the capacity to be on the cut- come to the University of Minnesota’s cancer ting edge of new technologies which save center. I don’t know if you know that or not, lives. but it’s one of the most famous cancer cen- The House has passed a good first step, ters. We thought we were pretty good in by the way, in reforming and making sure Texas—[laughter]—but you’re really good Medicare is modern and capable. And I hope here. This university performed the first suc- the Senate acts quickly and gets a responsible cessful bone marrow transplant and is one bill into conference so that we can get a bill of the world’s leaders in curing childhood to my desk, and we can get moving to doing leukemia and other cancers. There’s a lot of what is right for the American people. incredible work going on right here in your I appreciate so very much Tommy Thomp- neighborhood. son traveling with me today. He is—he has Patients from all over the globe have had been a fine, fine Secretary of Health and their lives saved by heart devices and other Human Services. He was a great Governor medical products invented by the hundreds of Wisconsin, and he has brought a lot of of medical companies that have their homes innovation to—[applause]. in what you call Medical Alley in the Min- There’s a lot of folks I could introduce. neapolis area, and I know we’ve got some I want to introduce one other person, a per- of the entrepreneurs, the medical entre- son I had the opportunity to meet at the air- preneurs here with us today. And I want to port when I came in. One of the things I thank you for your work, and I want to thank like to do is to herald kind of the quiet heroes you for employing people. of our society, those who volunteer to make People from every corner of the world their communities a better place. I met Pearl come to a clinic in southern Minnesota called Lam Bergad when I came earlier today. I Mayo Clinic. I know something about that, don’t know if you’ve ever heard of Pearl Lam because my mother’s on the board. [Laugh- here in your community, but she has done ter] Whew, those must be amazing board a magnificent job of heralding the cultural meetings. [Laughter] Sorry, Mom. [Laugh- life of Minnesota. She is a remarkable volun- ter] But the Mayo Clinic’s countless break- teer. Where are you, Pearl Lam? She’s some- throughs include effective drug treatment for where here. She must not have gotten a very tuberculosis and other diseases, and the clin- good seat. [Laughter] Oh, there you are, ic now has branches all across the country Pearl Lam. Please stand up, will you? Thank you for coming. to make sure our seniors get the best possible health care. She’s worked tirelessly to promote and im- prove cultural awareness in the community. I just met with a Mayo Clinic cardiologist She did so without any Government agency named Doug Wood. I want to share a story telling her what to do. She did so because he told me. I think it helps make my point she wanted to serve. She did so because she about the need for us to stay on the cutting had a talent she wanted to share. You see, edge of drug therapy. the great strength of the country is the fact When he was a resident less than 25 years that we’ve got a nation full of people who ago, the only real decision he had in treating really, honestly, decently care about the com- a heart attack patient was how long to keep munities in which they live and want to do him or her in bed. That was the most impor- something about it. And so, Pearl Lam, I tant decision he had to make after the heart want to thank you, on behalf of the thousands attack, how long will bed rest last. He could and millions of others in our country, for vol- do more than just offer comfort, and knowing unteering. Doug, he offered a lot of comfort.

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But today, thanks to progress in drug treat- encouraging seniors to band together to use ments, Dr. Wood uses a wide range of treat- purchasing power to—purchasing clout to be ments to limit the damage from heart attack, able to get lower drug—prices on their drugs. to stop any further progress of the heart dis- Now, what you need to know is that a full ease, and to prevent it from happening in Medicare drug benefit will take some years the first place. In 25 short years, the ability to phase in. And that’s why I think we need for this healer to make a significant dif- to have a Medicare endorsed prescription ference in the lives of those who have had drug card immediately for our seniors. The heart diseases is amazing. It is a fantastic de- card will allow seniors to gain access to man- velopment in our society. ufacturer discounts on the drugs they use as And the future promises even more break- well as gain access to other valuable pharma- throughs. That’s the exciting thing about ceutical services immediately. I talked about America. Thanks to the rapidly evolving field this last year. Court moved in there, and of genetic medicine, doctors may soon be we’re trying to get the court out of it. This able to prescribe individually suited drugs is important for seniors. based on their patients’ genetic makeup. If I also support proposals like the one the you think about that—you’ve got a particular House just passed, that will provide Federal problem and the drug will be designed to funds for immediate prescription drug assist- meet your need—it’s medicine at its most ance for seniors. basic level. Now, the key is to make sure that we ex- But there’s a problem, and I think we all pand seniors’ access to programs that help recognize it now in our society, and we need them work with their doctors to use the best to do something about it. And no matter how treatments too. And that includes better ac- exciting the new drug therapies are, they’re cess to innovative disease management pro- oftentimes very costly. Because Medicare— grams, like a program you have right here and what makes it even worse is that Medi- in Minnesota called Evercare. care does not cover most prescription drugs. You should have heard the testimony I That’s reality. Too many seniors, because heard, one from a loyal daughter whose mom that’s the case—because they’re too costly is now in the Evercare program and another and Medicare doesn’t cover them—too many from a customer of Evercare, about the need of our seniors are forced to chose between to use Medicare Plus Choice to fund innova- paying for their pills or paying basic bills. And tive programs that allow for seniors to feel that’s not right in America. like they’re not a part of some giant bureauc- And the reason why is because the Medi- racy but in fact treated on a basis that you’d care system was designed for a different want to be treated on. And that’s what time. It’s old. It is—it served a noble pur- Evercare does. And those are the kinds of pose, and it made a huge difference in a lot innovations we need throughout our system, of people’s lives. But it was designed at a by giving seniors more choice in the system. time, for example, when surgery was com- While we strengthen Medicare, we must mon and the miraculous prescription drugs also encourage innovation by preserving our we have today were not only available—not private health care system, the private health available, but some people hadn’t even care system which is the envy of the world. thought about them yet. In the report issued today that Tommy We need a Medicare system that is up- talked about, the Department of Health and dated and modern, to serve the seniors of Human Services says this: In countries which today with the medicine of today and to be rely on Government controls to keep health able to serve the seniors of tomorrow, guys care costs down—presumably to keep health like me, with the medicines of tomorrow. We care costs down—the patient suffers. And need a system which works. that’s important for you all to understand and I support a prescription drug benefit in to know. And it’s important for those who Medicare that allows seniors to choose the advocate Government control of all the drug coverage that is best for them—that is health care in America to understand as well: best for them. I also support allowing and The patient suffers.

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If you want a health care system where ciple. Minnesota’s immense and continuing the patient doesn’t suffer but, in fact, bene- contributions to biotechnology demonstrates fits, we must be innovative and encourage that this is the right principle for our health a healthy private sector. care system. When Government determines which As Members of Congress act to provide drugs are covered by health insurance, when a drug benefit in Medicare, I urge them to Government makes those decisions, the in- honor the principle I just outlined by putting variable results are this: There will be delays patient control and patient choice ahead of and inflexible limits on coverage of new treat- Government control. If we do so, we can ments. Costs might go down for seniors who guarantee the continued vitality and produc- are lucky enough to need the drugs that are tivity of America’s private health care system, on the Government’s list. But as in the Cana- while providing the modern drug coverage dian provinces and in many other countries, that seniors so desperately need. seniors who need drugs that are not on the And that’s part of making sure we have Government’s list would have no alternative a secure America. Health security is part of to get the coverage they prefer. All seniors being a secure America. The other thing we have to wait for the Government to decide need to do to make sure we secure—a lot what is covered, and that doesn’t seem fair of things we need to do to make sure we to me. And with prescription drugs, those secure America—one is to make sure we con- delays can be life threatening. tinue to grow our economy. Job security is And the heavy hand of Government in important for a secure America. other countries often does this: It discourages But I want to just tell you real quickly the costly and time-consuming investments about how I’m thinking about the war on ter- in research necessary to discover new drugs. ror, while I’ve got you stuck here. [Laughter] I want you to understand these facts. Eight The war goes on. We face an enemy who of the 10—top 10 best selling drugs in the is—they like to hide, and they’ll go to the world were developed by American compa- big cities in some of these countries and think nies, while we can expect that 34 out of the they’re invisible. And sometimes we don’t 55 breakthrough drugs entering the market hear from them for awhile. But you need to this year will come from American compa- know, they’re still plotting and planning. nies. It is our companies and our researchers These are the ones that go into caves and which are leading the world in finding the send their youngsters to the death. They therapies necessary to save lives. And we’ve themselves hide, and get somebody else to got to remember that. And therefore, we carry on their mission, sometimes suicide need to steer clear of direct Government missions. controls that stifle innovation and limit a pa- They’re out there still. They still hate tient’s choice. America because we love freedom. They hate What’s interesting is that more than half us because we value the fact that people of our seniors have private drug coverage should worship freely. The more free we are, now because of their previous employment. the more desperate they become. They like And Government should act to strengthen to find countries that are soft, kind of burrow these private health insurance options, not in, and try to plan. And you just need to know replace them. By relying on competition and we’re doing everything we can to disrupt patient’s choice and innovative programs like them. The doctrine still holds: Either you’re Evercare, we will protect our seniors now with the United States of America and free- and offer many new lifesaving services to sen- dom-loving countries, or you’re with the ter- iors in the future and preserve our private rorists. health care system. We have over 60,000 troops overseas, When the founders of the Mayo Clinic 8,000 still in Afghanistan. As you know, Af- started their practice over a century ago, they ghanistan is still a dangerous place. And chose a clear principle to guide their work: we’re going to stay there until a stable Gov- The best interest of the patient is the only ernment emerges, until we complete our interest to be considered. That’s the prin- mission. We’re—any time we get a hint in

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a place like Afghanistan, we’re moving, and when you hear your President talk about get- we’re moving with some of the finest Ameri- ting them and rounding them up, that I yearn cans ever produced, those who wear our uni- for peace. And I believe—I believe we can form. achieve peace. I believe that when this coun- This is a different kind of war. In the past, try remains strong and steadfast and re- you’d see tank movements or airplane forma- solved, we can achieve peace, peace not only tions. This is like hunting down a bunch of for our own people but peace in parts of the coldblooded killers; that’s what it’s like. And world where people have never dreamt of that’s all they are, by the way. And we’re after peace in a while. them one at a time, one person at a time. That’s the legacy this generation will leave We’ve—when I talked about the need for us behind: By being tough and doing what it to establish a Department of Homeland Se- takes to win the war on terror, we’ll leave curity, I announced—part of my announce- peace for our children and our grand- ment was that I told the people that we had children. I’ll tell you what else is going to hauled in—‘‘we’’ being our friends as well happen here, as a result of the evil done to as ourselves—hauled in over 2,400 of these America, there’s going to be some incredible terrorists. That’s in less than a year’s time. good here at home too. I believe people have So we’re making progress, one person at a taken a step back and asked, ‘‘What’s impor- time. tant in life?’’ You know, the bottom line and Our goal is to get them on the run and this corporate America stuff, is that impor- keep them on the run, so they have no place tant? Or is serving your neighbor, loving your to light or no place to hide. And it’s going neighbor like you’d like to be loved yourself? to take awhile. The American people under- I gave a speech at Ohio State University, stand that; that’s positive. That’s good news at their graduation, and I was pleased to see for us and bad news for the enemy. The that 70 percent of the seniors in the class American people understand that we’ve got a new challenge. Because we understand, had served their community one way or the when somebody attacks our values, the val- other. They understand that a life in America ues we hold dear, it doesn’t matter how long is most complete when you help a neighbor it takes, we’ll defend them. in need, when you volunteer your time, that I’ve submitted a bill, an appropriations re- in America, being a patriot is more than just quest to the Congress, which is a significant putting your hand over your heart and saying, increase in our defense spending. And I did ‘‘One nation under God.’’ It is a—serving a it for two reasons. One is, I firmly believe neighbor—[applause]—it also means loving that any time we commit our young into a neighbor. It means mentoring a child. harm’s way, they deserve the best pay, the You see, in spite of our richness, there are best training, the best equipment possible. pockets of despair and hopelessness and And two, it’s a signal to the enemy and loneliness and addiction that we must ad- to our friends and allies that we’re in this dress. The enemy hit us, and I believe they for the long run. There is no time certain finally—they helped wake up a spirit of per- as to when we quit. There is not a calendar sonal responsibility, a spirit that says, being that says, ‘‘By such and such a moment, an American means you’ve got to help a you’ve got to stop, Mr. President.’’ For how- neighbor in need as well as saluting your flag. ever long it takes, we defend our freedoms. And it’s happening in this country. It’s hap- History has called America into action, and pening. And I believe that out of the evil America—America will act, because we’re a done to America is going to come a society nation that stands for tremendous values. We in which the great American experience and love freedom. We love freedom. And any- the great American hopes extends into all body that tries to take it away—[applause]. neighborhoods, where people realize that I also want you to know this, that out of they’re fortunate to live in the greatest the evil done to America is going to come land—I mean the greatest—on the face of some good. I firmly believe that. I believe the Earth. And it’s my honor to be your it. I want the youngsters here to understand, President.

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I want to thank you all. I want to thank I recommend that the Senate give early you all for giving me a chance to come by and favorable consideration to the Second and talk about an issue that’s important for Protocol and give its advice and consent to today and tomorrow, and that is quality ratification. health care for our seniors. And thank you for giving me a chance to be the President George W. Bush of the greatest nation on the face of the Earth. The White House, God bless, and God bless America. July 11, 2002.

NOTE: The President spoke at 2:50 p.m. in the Nicollet Grand Ballroom at the Hyatt Regency Message to the Senate Transmitting Minneapolis. In his remarks, he referred to Mark the Ireland-United States Agreement G. Yudof, president, University of Minnesota. on Mutual Legal Assistance in Criminal Matters Message to the Senate Transmitting July 11, 2002 the Second Protocol Amending the Canada-United States Extradition To the Senate of the United States: Treaty With a view to receiving the advice and July 11, 2002 consent of the Senate to ratification, I trans- mit herewith the Agreement between the To the Senate of the United States: Government of the United States of America With a view to receiving the advice and and the Government of Ireland on Mutual consent of the Senate to ratification, I trans- Legal Assistance in Criminal Matters, signed mit herewith the Second Protocol Amending at Washington on January 18, 2001. I trans- the Treaty on Extradition Between the Gov- mit also, for the information of the Senate, ernment of the United States of America and the report of the Department of State with the Government of Canada, as amended, respect to the Treaty. signed at Ottawa on January 12, 2001. In ad- The Treaty is one of a series of modern dition, I transmit, for the information of the mutual legal assistance treaties being nego- Senate, the report of the Department of tiated by the United States in order to State with respect to the Second Protocol. counter criminal activities more effectively. As the report explains, the Second Protocol The Treaty should be an effective tool to as- will not require implementing legislation. sist in the prosecution of a wide variety of The Second Protocol amends the Extra- crimes, including terrorism, drug trafficking, dition Treaty Between the United States of fraud, and other white-collar offenses. The America and Canada, signed at Washington Treaty is self-executing. on December 3, 1971, as amended by an Ex- change of Notes of June 28 and July 9, 1974, The Treaty provides for a broad range of and by a Protocol signed at Ottawa on Janu- cooperation in criminal matters. Mutual as- ary 11, 1988. sistance available under the Treaty includes: The Second Protocol, upon entry into taking the testimony or statements of per- force, will enhance cooperation between the sons; providing documents, records, and arti- law enforcement communities of both na- cles of evidence; locating or identifying per- tions. The Second Protocol incorporates into sons; serving documents; transferring per- the U.S.-Canada Extradition Treaty a provi- sons in custody for testimony or other pur- sion on temporary surrender of persons that poses; executing requests for searches and is a standard provision in more recent U.S. seizures; identifying, tracing, freezing, seiz- bilateral extradition treaties. It also provides ing, and forfeiting the proceeds and instru- for new authentication requirements for doc- mentalities of crime and assistance in related umentary evidence, which should streamline proceedings; and such other assistance as the processing of extradition requests. may be agreed.

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I recommend that the Senate give early Federation. For example, the U.S.-Russia and favorable consideration to the Treaty and Agreement provides a definition of ‘‘sustain- give its advice and consent to ratification. able harvest’’ that will help the United States George W. Bush and Russia to implement polar bear con- servation measures while safeguarding the The White House, interests of native people. In addition, the July 11, 2002. U.S.-Russia Agreement establishes the U.S.- Russia Polar Bear Commission, which would function as the bilateral managing authority Message to the Senate Transmitting to make scientific determinations, establish the Russia-United States Agreement taking limits, and carry out other responsibil- on the Conservation and ities under the terms of the U.S.-Russia Management of the Alaska-Chukotka Agreement. The proposed U.S.-Russia Polar Bear Population Agreement would strengthen the conserva- July 11, 2002 tion of our shared polar bear population through a coordinated sustainable harvest To the Senate of the United States: management program. With a view to receiving the advice and Early ratification of the U.S.-Russia Agree- consent of the Senate to ratification, I trans- ment by the United States will reinforce our mit herewith the Agreement between the leadership role in international conservation Government of the United States of America of marine mammals and will encourage simi- and the Government of the Russian Federa- lar conservation action by other countries. I tion on the Conservation and Management recommend that the Senate give early and of the Alaska-Chukotka Polar Bear Popu- favorable consideration to this Agreement lation done at Washington on October 16, and give its advice and consent to ratification. 2000 (the ‘‘U.S.-Russia Agreement’’). I also George W. Bush transmit, for the information of the Senate, the report of the Department of State with The White House, respect to that Agreement. July 11, 2002. The U.S.-Russia Agreement provides legal protections for this population of polar bears in addition to those found in the Agreement Remarks at a Dinner for Senatorial on the Conservation of Polar Bears done at Candidate Norm Coleman and Oslo, November 13, 1973 (the ‘‘1973 Agree- Congressional Candidate John Kline ment’’), which was a significant, early step in Minneapolis in the international conservation of polar July 11, 2002 bears. The 1973 Agreement is a multilateral treaty to which the United States and Russia Thank you very much. Thanks for that are parties. (The other parties are Norway, warm welcome. It’s great to be back in Min- Canada, and Denmark.) The 1973 Agree- nesota. I’ve had some opportunity to wel- ment provides authority for the maintenance come some fine Minnesota folks to the White of a subsistence harvest of polar bears and House. Last May, a couple of Minnesota provides for habitat conservation. teams came by to say hello that happened The proposed U.S.-Russia Agreement, to be national champs in women’s and men’s which would operate as a free-standing treaty hockey. They felt pretty good about things, separate from the 1973 Agreement, is the and they said they thought they’re going to culmination of an 8-year effort. The U.S.- be back next year. [Laughter] Next year Russia Agreement builds on the 1973 Agree- when they come back, Norm Coleman and ment to establish a common legal, scientific, John Kline are going to be with me to greet and administrative frame work for the con- them. servation and management of the Alaska- I want to thank you for supporting these Chukotka polar bear population, which is fine candidates. I want to thank you for being shared by the United States and the Russian here tonight, and I want to thank you for

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what you’re going to do, which is to man the time I ran—[laughter]—he wins as a Repub- phones and put up the signs and convince lican because he brought a compassionate your neighbors that these two men need your conservative agenda to the people. He fo- support for the good of the country and for cused on things that matter, like jobs and the good of your great State. making sure children got a quality education. I’m proud to be here with not only Norm He agrees with me that when it comes to but, as importantly, his wife, Laurie. It’s im- educating our children, it is important to portant to have a—[applause]. And I appre- have high standards and high expectations. ciate Vicky Kline as well, being here with You see, if you don’t think some kids can John tonight. learn, the system will just shuffle them I know something about marrying well. through; the system will quit on them. That [Laughter] We—I’m really proud of Laura. is not good enough for America. He under- Someday she needs to come and campaign stands that to make sure that every single for these candidates, if they want to win. I child gets educated, we must understand don’t know if you’ve heard me say this be- whether they’re learning to read and write fore, but when I married Laura, she was a and add and subtract. And if they are, we public school librarian. And the truth of the will praise the teachers. But if we find out matter is, she didn’t particularly care about that our children can’t read, write, and add politics or politicians. [Laughter] And now, and subtract, we better do something about here she is, the First Lady of the greatest it early, before it’s too late. No child should country in the world, and what a fabulous, be left behind in America. fabulous job she’s doing. She sends her best. Norm’s got a record of prosecution—pros- You know, one of the things about a Presi- ecuting white-collar crime. Our Nation must dent—people come by, and they say, ‘‘We have confidence in our institutions. I often- appreciate the job you’re doing.’’ And one times talk about the need for each of us to of my first responses is that if you’ve got a be responsible for our behavior. Corporate good team, the job is a lot easier than it might America must be responsible for its behavior look. And I want you to know, I put together as well. We expect balance sheets to be fair a fabulous team. And one of my team mem- and open. We expect transparency, and we bers is here tonight, the Secretary of Health expect those in charge of corporate America and Human Services, the former Governor to treat the shareholders and employees with of the State of Wisconsin, my close friend, the utmost respect. a guy doing a great job, Tommy Thompson. I need Norm in the Senate to help me I appreciate you, Tommy. on Medicare. Today I had the honor of going I want to thank those who are—who hold to the University of Minnesota Medical Cen- office now. The speaker is here, and the Sen- ter, and what a fabulous place that is. It is ate minority leader is here. The secretary of first-class. And we saw some of the new— state is here. Thank you all for coming. And heard about some of the new drug therapies I’m honored also to be sharing the stage with being developed to save lives and extend life the next Governor of the State of Minnesota, and to enhance the quality of life. And what Tim Pawlenty. we need is a Medicare plan that not only There’s no doubt in my mind that these encourages innovation but gives seniors great candidates can win. There’s no doubt, choices, all of which will include prescription because they bring a lot of qualities to the drugs. ticket that the people of Minnesota will re- I need a man in the Senate who will join spect. Norm Coleman: First, he loves his me in nominating judges to our courts who family; he’s a man of faith; he loves his coun- will not use the bench from which to legislate try; he’s an independent kind of fellow— but will strictly interpret the Constitution of nothing wrong with that. [Laughter] the United States. The thing I like about Norm is, he focuses And we need a voice in the United States on results. As the mayor of St. Paul—I’m Senate who will focus on the people’s busi- told, a pretty Democratic city; at least that’s ness, not the needless partisanship, the bick- what the numbers looked like to me the last ering, the name-calling that too often—too

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often fills that great Chamber. We need job base? What does it take to make sure somebody who can work with both sides of that the entrepreneurial spirit of America is the aisle, somebody who’s focused on what’s strong and vibrant so that there are more jobs right for Minnesota and what’s right for for people who want to work? And that America. And there’s no doubt in my mind means making sure Congress doesn’t over- that the right person to handle that important spend, doesn’t overcommit, and making sure responsibility is Norman Coleman. we have fiscal sanity in Washington, DC. And I’m here to campaign for John Kline We cut taxes at the right time. You see, for the United States House of Representa- I read the textbook that says, when people tives. If the good folks in his district are wise, have more money, they’re going to demand they’ll send him to Washington. John served a good or a service. And if they demand a the United States with distinction as a mem- good or a service, somebody’s going to ber of the Marine Corps. He understands the produce the good and service. And if some- need to support our military, and we need body produces that good and service, it people who will support our military in the means somebody’s going to find work. For United States Congress. the good of long-term economic growth and The thing I like about this good man is, for the good of long-term economic vitality, he actually worked on a farm. He knows if we need to make the tax cuts permanent. you own the land and make a living on the And I want a Senator and Members of the land, every day is Earth Day. He understands House to do so. how important farming is not only to his dis- One of the worst taxes in America is what trict but to his State and to the Nation. And they call the death tax. It’s a tax that taxes he understands what I know: When you’re people’s assets more than once. It’s a tax that good at something, you need to promote it. hurts farmers and ranchers. It says you can- Our farmers and ranchers are the best in the not leave your business, if you’re a small- world, and we need to be selling our farm business owner, to your relative. It says to products and ranch products all over the some in America that if your loved one passes world. away, that you might have to liquidate your I look forward to having John in the United family farm in order to pay inheritance taxes. States Congress to work on the homeland de- The Congress did the right thing in elimi- fense and on the defense of our Nation. And nating the tax, but it only lasts, because of when you put him there, he’ll bring honor a quirk in the Senate rules, for 10 years. We to that office. need people in the United States Congress I’m also here—I’m pleased to urge you to who understand how bad the death tax is to work hard for your next Governor, Tim small-business owners, ranchers, and farmers Pawlenty. He understands what I know: If in America and make the repeal of the death you let people keep more of their own tax permanent. money, it invigorates the economy. And he So I spend a lot of time on economic secu- knows the best way to bring fiscal discipline rity and will continue to do so until I’m con- to any body of government is to resist unnec- fident people can find work. essary spending. Tim Pawlenty will be a fine I also spend a lot of time on our homeland and great Governor for the State of Min- security. You need to know that we fight an nesota, and I’m proud to lend my support. enemy that is not only ruthless, a group of I’m pleased to talk about tax relief and people who don’t value human life, but trade because it is necessary to—those are they’re—they hide, and they’re patient, and necessary items to make sure our economy they’re determined to hurt America. Peo- recovers. You know, in Washington, they talk ple—I’m sure some of the young hear, ‘‘Well, a lot about statistics, and that’s fine—‘‘This why would you want to hurt our country? number’s up, or that number’s down.’’ What Why would they care?’’ And the answer is, I worry about is, anytime anybody is looking because we’re a beacon for freedom. We for work and can’t find it, we’ve got a prob- stand for things they don’t stand for. lem. So therefore, I ask the question, how See, we believe people should be able to do we make sure we continue to expand our worship the Almighty God any way they see

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fit. They don’t. We believe people should be and EMS teams all across the country, to able to speak their mind. We believe in a make sure that we respond to an emergency free press. We believe in open elections. if it ever were to occur. This new agency is What we stand for is freedom, and they hate in charge of working to deal with the threat freedom. And therefore, they hate us. But of bio—a bioterrorist attack, so they’ve got they may be patient. We’re more patient. the immunizations available and our health They may be determined. We are more de- care systems are prepared to respond. This termined. They may think they have hit a new agency will analyze data, intelligence country which is soft and weak. They have that has been gathered from around the found out the United States of America will world, and analyze it in one place to deter- defend our freedoms at all costs. We’re going mine our vulnerabilities and then the re- to hunt them down one by one and bring sponse necessary to button up the American them to justice. homeland. We are—we’re making progress in a dif- I’m proud of those who work for our Gov- ferent kind of war. You know, you watch the ernment. We’ve got a lot of fine folks working old war films, you’d see tanks moving across a lot of hours, running down any kind of hint a battlefield or formations of airplanes. That’s there is. Any kind of suggestion that some- not the kind of war we’re in. We’re after body is going to do something to America, international killers, coldblooded killers. we’re responding as quickly as we possibly That’s all they are. They—and, therefore, can. And we’re making good progress. But we’ve got to make sure at home we’re secure. you just need to know, the best way to secure The other day, I made a far-reaching pro- the homeland is to do what we’re doing, and posal that urges Congress to join me in reor- that’s to hunt these killers down one person ganizing our Government so we can do as at a time. good a job as possible about protecting the In my speech to the country outlining my homeland. Listen, I didn’t run by saying, vision for a Department of Homeland Secu- ‘‘Vote for me. I’m for bigger Government.’’ rity, I told the folks that we’ve—we and our That wasn’t my platform. [Laughter] But I friends have hauled in over 2,400 of these did run and say, ‘‘Give us a chance to killers. Sometimes you’ll know about it, and produce results.’’ sometimes you won’t. But what you need to Now, you need to know that when it comes know is that wherever they try to light, we’re to homeland security, there are over 100 going to get them on the run, and we’re going agencies involved with homeland security, to keep them moving. And we’re going to which means it’s hard to align authority and keep them moving until our military and our responsibility. We’ve got 100 of them scat- coalition brings them to justice. tered all over Washington. I think those You’ve got to know how proud I am of agencies, for the good of the country, need the United States military. What a great to be under one Cabinet officer. We need group. I asked the United States Congress to have as a—the priority of these agencies for a significant increase in defense spending. the protection of the American people. Now, And I know the two gentlemen up here, if some of the agencies do other things, no they were in the Halls of the Congress, would question about it. But in order to effect a be strongly supporting what I’m about to tell new culture and to set new priorities, it you. The reason I asked for the biggest in- makes sense to me to have authority and re- crease since President Ronald Reagan was sponsibility aligned. the President is because I believe this: Any- And this new agency will have several time you commit an American youth into functions. One is to make sure we under- harm’s way, they must have the best equip- stand who’s coming into our country and why ment, the best training, the best pay possible. they’re coming in and whether they’re leav- And the increase also sends this signal to ing when they say they’re going to leave. This our friends and allies, as well as the enemy: new agency will be charged with working We’re in it for the long haul. We’re talking with some of America’s finest citizens, our about freedom. We’re talking about civiliza- first-responders, the police and firefighters tion itself. History has called our country into

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action. There’s a big spotlight on America, wealth, there are pockets of despair. There’s and our country will lead. We will lead this loneliness. There’s addiction. There are chil- vast coalition. dren who wonder whether the American I want you to know, the doctrine that says, Dream is meant for them. And I believe out ‘‘Either you’re with us, or you’re with the of the evil done to America will come the terrorists,’’ it still stands, and we enforce it good of addressing those problems, because every single day. If you harbor a terrorist, a lot of Americans have stepped back and if you feed a terrorist, if you finance a ter- said, ‘‘What is the value of life? How do I rorist, you’re just as guilty as the killers who have a complete life?’’ And many of our fel- struck America on September the 11th, and low citizens understand that to have a com- we’ll hold you accountable as well. plete life, you love a neighbor just like you’d Our task is bigger than any single indi- like to be loved yourself. There are thousands vidual. We chase down a network. And at of our citizens, on a daily basis, responding the same time, I have tried to speak as plainly to the evil done to America by mentoring as I possibly can about those nations with— a child or helping a shut-in or delivering food who harbor weapons of mass destruction, to the hungry, providing shelter for the who would dare try to blackmail the United homeless. States and other freedom-loving countries. And that’s the true strength of our country. We cannot and we must not allow the world’s We’re a decent country, a compassionate worst leaders to develop and deploy the country. We understand that each of us can’t world’s worst weapons. We owe it to our chil- do everything, but each of us can do some- dren and we owe it to our children’s children thing to help make a difference in changing to be tough and firm. America, one soul, one conscience, one heart We’re making progress. We’ve got a lot of at a time. work to do, a lot of work. And I appreciate And that is why I feel so strongly that our so very much the resolve of the American people. My, what a fantastic country we have. Government must not fear the compas- We are so strong and so courageous and so sionate programs that emanate out of the compassionate, it leads me to declare this, faith-based institutions. We must not dis- that out of the evil done to America will come criminate against faith. We must welcome incredible good. Out of the evil done to our faith in America in order to change lives. country will be some—some positive devel- And that’s part of the spirit that is evolving opments, starting with this. I believe that as in the country. We are ushering in a new the United States continues to lead with reso- period of personal responsibility, where each lution and determination, that we can of us understands we’re responsible for the achieve peace. We can achieve peace not decisions we make in life. We’re responsible only here at home, but we can achieve peace for loving our children. If you’re a mom or in places around the world that haven’t a dad—if you’re lucky enough to be a mom dreamt of peace or dreamt that peace is pos- or a dad, you’re responsible for loving your sible. I believe it. children with all your heart and all your soul. I believe that the terrorists—I don’t know If you live in Minneapolis, Minnesota, and what went through their mind. They must you’re aware of a friend in need, you’re re- have thought we were so self-absorbed and sponsible for helping that friend in need. If materialistic that all we would do after 9/11 you’re running a corporation, you’re respon- was file a lawsuit or two. [Laughter] What sible for open books and treating your em- they didn’t realize is that this is a great na- ployees well. tion, a great nation full of determined people, That message came home loud and clear people not only to work for peace but people in Flight 93, the concept of serving some- who here at home will seize the moment to thing greater than yourself in life, the con- make our communities a more decent and cept of understanding that patriotism is more positive place for everybody to live. than saying the pledge or saluting the flag; We live in a fabulous nation, a rich nation, patriotism is serving your Nation by helping but we must always remember that in our a neighbor in need. We had citizens traveling

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across the country. They realized their air- Development (Deputy Administrator) have plane was going to be used as a weapon. They died, resigned, or otherwise become unable told their loved ones they loved them. They to perform the functions and duties of the said a prayer. One guy said, ‘‘Let’s roll.’’ And office of Administrator, the following officers they drove the plane in the ground to save of the United States Agency for International other people’s lives. It’s the new spirit of the Development, in the order listed, shall per- 21st century. form the functions and duties of the office And so, tonight I urge you not only to work of Administrator, if they are eligible to act hard for these good candidates but work hard as Administrator under the provisions of the to be a part of making America a complete Federal Vacancies Reform Act of 1998, until country for everybody. And it’s happening— such time as the Administrator or Deputy it’s happening. You see, I can confidently Administrator is able to perform the func- predict, out of the evil done to America will tions and duties of the office of Adminis- come great good, because I’m the President trator: of the greatest nation in the face of the Earth. Assistant Administrator for Policy and Pro- It is my honor to be here. May God bless you all, and may God bless America. gram Coordination; Assistant Administrator for Legislative and NOTE: The President spoke at 6:10 p.m. at the Public Affairs; Target Center Arena. In his remarks, he referred Assistant Administrator for Management; to Steve Sviggum, speaker, and gubernatorial can- and didate Tim Pawlenty, majority leader, Minnesota The Assistant Administrators for the fol- House of Representatives; Dick Day, minority lowing Bureaus in the order in which they leader, Minnesota Senate; and Minnesota Sec- shall have taken the oath of office: retary of State Mary Kiffmeyer. John Kline is a candidate for Congress in Minnesota’s First Con- Bureau for Africa; gressional District. Bureau for Asia and the Near East; Bureau for Democracy, Conflict, and Hu- manitarian Assistance; Memorandum on Designation of Bureau for Economic Growth, Agri- Officers of the United States Agency culture, and Trade; for International Development To Bureau for Europe and Eurasia; Act as Administrator Bureau for Global Health; and July 10, 2002 Bureau for Latin America and the Carib- bean. Memorandum for the Administrator of the Sec. 2. Exceptions. United States Agency for International (a) No individual who is serving in an of- Development fice listed in section 1 in an acting Subject: Designation of Officers of the capacity shall, by virtue of so serving, United States Agency for International act as Administrator pursuant to this Development to Act as Administrator memorandum. By the authority vested in me as President (b) Notwithstanding the provisions of this under the Constitution and the laws of the memorandum, the President retains United States of America, including the Fed- discretion, to the extent permitted by eral Vacancies Reform Act of 1998, 5 U.S.C. the Federal Vacancies Reform Act of 3345 et seq., I hereby order that: 1998, 5 U.S.C. 3345–3349d, to depart Section 1. Order of Succession. from this memorandum in desig- Subject to the provisions of section 2 of nating an acting Administrator. this memorandum, during any period when both the Administrator of the United States George W. Bush Agency for International Development (Ad- ministrator) and the Deputy Administrator of NOTE: This memorandum was released by the Of- the United States Agency for International fice of the Press Secretary on July 12.

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Message to the Congress You need to know that the breakthroughs Transmitting the District of that you have made will make life better for Columbia’s Fiscal Year 2003 all Americans. Your explorations will expand Budget Request our understanding of the world, and that’s important. Your innovations will help Amer- July 11, 2002 ica stay at the forefront of technological de- To the Congress of the United States: velopment for decades to come. Pursuant to my constitutional authority Most Americans may not understand all and consistent with sections 202(c) and (e) you do and all the details of your work. But of The District of Columbia Financial Man- we understand your promise and your com- agement and Responsibility Assistance Act of mitment and your dedication. And we’re 1995 and section 446 of The District of Co- grateful for it, so thanks for coming. lumbia Self-Governmental Reorganization I appreciate Larry Lindsey, my Director Act as amended in 1989, I am transmitting of the National Economic Council, and Jack the District of Columbia’s Fiscal Year 2003 Marburger, the Director of the Office of Budget Request Act. Science and Technology Policy, for spear- The proposed FY 2003 Budget Request heading this event. I want to thank a couple Act reflects the major programmatic objec- of my Cabinet Secretaries who are here: Ann tives of the Mayor and the Council of the Veneman of Agriculture and Spence Abra- District of Columbia. For FY 2003, the Dis- ham of Energy. Thank you both for your trict estimates total revenues and expendi- service. tures of $5.7 billion. I appreciate Rita Colwell, as Director of George W. Bush the National Science Foundation, for being here, for her work. I want to thank Elias The White House, Zerhouni from the NIH for being here. Dr. July 11, 2002. Zerhouni is—we plucked him out of the pri- NOTE: This message was released by the Office vate sector to serve our country, and he’s of the Press Secretary on July 12. doing a fine job. I just want to remind every- body that the commitment we made that we would double the budget in the NIH has Remarks to the Recipients of the been completed, and I appreciate your lead- 2001 Presidential Early Career ership there, Dr. Zerhouni. Awards for Scientists and Engineers I want to thank Vice Admiral Conrad July 12, 2002 Lautenbacher of—the Administrator of NOAA, National Oceanic and Administra- Well, thank you all very much for coming tive—Atmospheric Administration. I want to today. It’s a privilege to welcome our coun- thank Dr. Arden Bement, the Director of the try’s best minds to the White House. Today National Institute of Standards and Tech- it is my honor, high honor to welcome the nology—Arden, thank you very much, sir— men and women receiving the 2001 Presi- John Hopps, the Deputy Director of the De- dential Early Career Awards for Scientists fense Research and Engineering at the De- and Engineers. partment of Defense. I want to thank James I want to thank you all for coming. I appre- Burris, the Deputy Chief Research and De- ciate so very much the first steps in the ca- velopment Officer of the Veterans Health reers of discovery that you’ve taken. And the Administration, and Shannon Lucid, who is amazing thing is, your colleagues already rec- the Chief Scientist of NASA. ognize the great potential of your work. Dr. The reason I mention these fine folks is Marburger was telling me that it was only that they all picked you. So when you see 5 years ago that a person who had—who re- them at the reception—[laughter]—be nice ceived an award that you’re receiving today to them. [Laughter] became a Nobel laureate. Maybe I’m looking I want to welcome the family member or at another Nobel laureate or two here. friend that you picked to come here. I’m [Laughter] sorry the room is so small. I suspect we could

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have accommodated a lot more people if we thrill of discovery—I suspect that’s the had a bigger room. But Dr. Marburger told case—or by the quest to push outward the me that at the reception other family mem- bounds of human knowledge. And many of bers will be there. Please give them my best, you will make significant discoveries. It prob- and sorry I couldn’t extol your virtues in front ably won’t be household names—not all that of them, in their person. But I want to wel- bad, I might add. [Laughter] But Americans come you all as well to the White House. will know your work because it will touch It’s quite a place to go to work, as I’m sure their lives, and I hope you understand that you can imagine. And I hope you recognize that in itself is a great honor and a great ac- it’s quite a place to receive an award too. complishment. The honorees are—you’re serving Amer- You’ll blaze the trail for others who will ica; that’s what you’re doing. And you’re build on your successes and then, of course, doing so in the best of—in the best of the discover their own. That’s the wonders of public interest. And for that, we’re grateful. science and engineering. You’re learning how the smallest known I appreciate the fact that many of you are particles operate and interact. You’re laying already inspiring young boys and girls to ex- down the foundation for new methods of di- plore their interest in science and engineer- agnosing and treating cancer and heart dis- ing. That in itself is an incredibly important ease, doing research to protect Americans contribution to our country, to excite young- against threats posed by chemical weapons. sters about the promise and hope of science You’re exploring the unchartered territory of and promise and hope of engineering. By in- the human mind. volving students in your work and creating Your work advances important national opportunities for young Americans to learn goals. And accomplishing these goals re- about career opportunities in the sciences, quires the cooperation amongst scientists and you’re opening minds and opening doors to engineers in our universities, our Govern- future researchers. Your impact will be felt ment agencies, and, of course, in the private for decades to come, and that’s why I’ve sector. come to speak to you. This award is a statement of our con- So on behalf of all Americans, I want to fidence, the Nation’s confidence and the tre- thank you for your commitment to improving mendous good that can come when the lives and exploring new horizons. I congratu- America Government supports the genius of late you for your hard work. I urge you not the American people. to stop, to keep using your God-given talents My administration is continuing a great and your God-given genius to make the tradition. Whether finding cures for diseases world better for all of us. or learning how to better predict natural dis- May God bless your work, and God bless asters or developing information technology America. Congratulations. that unites the world, Government-funded basic research expands knowledge and learn- NOTE: The President spoke at 10:10 a.m. in Presi- dential Hall in the Dwight D. Eisenhower Execu- ing and helps our people to live longer and tive Office Building. healthier and more satisfying lives. We are committed to basic research from the Fed- eral Government. And we will keep that Statement on Iran commitment so long as we’re here. July 12, 2002 Innovation is one of our greatest national strengths. It drives our economy. It helps We have seen throughout history the protect our environment. And the truth of power of one simple idea: When given a the matter is, it improves lives all across the choice, people will choose freedom. As we globe. In all of your work, you’re contributing have witnessed over the past few days, the to the strength of America and to the well- people of Iran want the same freedoms, being of our people. human rights, and opportunities as people You probably have become scientists or around the world. Their Government should engineers because you’re motivated by the listen to their hopes.

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In the last two Iranian Presidential elec- branch. As a matter of comity, appropriations tions and in nearly a dozen parliamentary and requests of the legislative branch are trans- local elections, the vast majority of the Ira- mitted without change. These additional nian people voted for political and economic amendments would increase discretionary reform. Yet their voices are not being lis- resources for the legislative branch by $17.7 tened to by the unelected people who are million. the real rulers of Iran. Uncompromising, de- The details of these requests are set forth structive policies have persisted, and far too in the enclosed letter from the Director of little has changed in the daily lives of the the Office of Management and Budget. I Iranian people. Iranian students, journalists, concur with his comments and observations. and Parliamentarians are still arrested, in- Sincerely, timidated, and abused for advocating reform George W. Bush or criticizing the ruling regime. Independent publications are suppressed. And talented NOTE: An original was not available for students and professionals, faced with the verification of the content of this letter. dual specter of too few jobs and too many restrictions on their freedom, continue to seek opportunities abroad rather than help Letter to the Speaker of the House of build Iran’s future at home. Meanwhile, Representatives Requesting Funds members of the ruling regime and their fami- for the Disaster Relief Program of lies continue to obstruct reform while reap- the Federal Emergency ing unfair benefits. Management Agency Iran is an ancient land, home to a proud July 12, 2002 culture with a rich heritage of learning and progress. The future of Iran will be decided Dear Mr. Speaker: by the people of Iran. Right now, the Iranian In accordance with provisions of Public people are struggling with difficult questions Law 107–73, the Departments of Veterans about how to build a modern 21st-century Affairs and Housing and Urban Develop- society that is at once Muslim, prosperous, ment, and Independent Agencies Appropria- and free. There is a long history of friendship tions Act, 2002, I hereby request and make between the American people and the peo- available $500 million for the disaster relief ple of Iran. As Iran’s people move towards program of the Federal Emergency Manage- a future defined by greater freedom, greater ment Agency (FEMA). tolerance, they will have no better friend These funds would allow FEMA to con- than the United States of America. tinue providing assistance to victims of disas- ters in several States, including victims of re- cent flooding in Texas and wild fires in Ari- Letter to the Speaker of the House of zona and Colorado. These funds would also Representatives Transmitting Fiscal be available for ongoing response to prior dis- Year 2003 Budget Amendments asters and to ensure that FEMA has re- July 12, 2002 sources on hand to provide timely response to future disasters. Dear Mr. Speaker: I designate the funds made available today I ask the Congress to consider the en- as an emergency requirement pursuant to closed requests for FY 2003 budget amend- section 251(b)(2)(A) of the Balanced Budget ments for the Securities and Exchange Com- and Emergency Deficit Control Act of 1985, mission and for the Departments of Agri- as amended. culture, Commerce, and Housing and Urban The details of this action are set forth in Development. The discretionary budgetary the attached letter from the Director of Man- resources proposed in my FY 2003 budget agement and Budget. I concur with his com- would not be increased by these requests. ments and observations. This transmittal also contains FY 2003 Sincerely, budget amendments for the legislative George W. Bush

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NOTE: An original was not available for the congressional agenda. Later, he had CIA verification of the content of this letter. and FBI briefings and then met with the Na- tional Security Council. In the afternoon, the President met with former Coast Guard officials to discuss pro- Digest of Other posed homeland security legislation. Later, White House Announcements in the Cabinet Room, the President met with House and Senate Republican leaders to dis- cuss the congressional agenda. He then met The following list includes the President’s public with recipients of the National Outstanding schedule and other items of general interest an- Young Farmer Awards. nounced by the Office of the Press Secretary and not included elsewhere in this issue. The President announced his intention to nominate Wendy Jean Chamberlin to be As- sistant Administrator for Asia and the Near July 6 East at the U.S. Agency for International De- The President declared a major disaster in velopment. Guam and ordered Federal aid to supple- The President announced his intention to ment Territory and local recovery efforts in nominate the following individuals to be the area struck by Typhoon Chata’an on July members of the Board of Trustees of the 5–6. Morris K. Udall Scholarship and Excellence July 8 in National Environmental Policy Founda- tion: Malcolm B. Bowekaty, Robert Boldrey, In the morning, the President and Mrs. Herbert Guenther, Richard Narcia, and Bush returned to Washington, DC, from the Bradley Udall. Bush family home on Walker’s Point in The President announced his intention to Kennebunkport, ME. nominate Richard Healing to be a member The President announced his intention to of the National Transportation Safety Board designate Linton F. Brooks as Acting Under (safety engineering representative). Secretary for Nuclear Security and Acting Administrator for the National Nuclear Secu- rity Administration at the Department of En- July 11 ergy. In the morning, the President had separate July 9 telephone conversations with President Hosni Mubarak of Egypt and King Abdullah In the morning, the President had separate II of Jordan to discuss developments in the telephone conversations with Crown Prince Middle East and upcoming ministerial meet- Abdullah of Saudi Arabia and Prime Minister ings. Ariel Sharon of Israel to discuss peace efforts Later in the morning, the President trav- in the Middle East. Later, he traveled to New eled to Minneapolis, MN, where he met with York City. USA Freedom Corps volunteer Pearl Lam In the afternoon, the President returned Bergad. Then, at the University of Minnesota to Washington, DC. Later, he met with Arch- Medical School, he participated in a round- bishop Demetrios, Primate of the Greek Or- table discussion on prescription drugs and thodox Church of America, and other Ortho- dox leaders. medical innovation. In the evening, the President returned to July 10 Washington, DC. In the morning, the President had a break- The President announced his intention to fast meeting with Speaker of the House of nominate John M. Reich to be Vice Chair- Representatives J. Dennis Hastert, Senate person of the Federal Deposit Insurance Majority Leader Tom Daschle, Senate Mi- Corporation. nority Leader Trent Lott, and House Minor- The President announced his intention to ity Leader Richard A. Gephardt to discuss appoint the following individuals as members

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of the Board for International Food and Agri- tration, vice James R. Thompson, Jr., re- culture Development: Michael Deegan; Stu- signed. art Iverson, Jr.; Anthony Laos; William DeLauder; Carol Lewis; and Sharron Harry R. Hoglander, Quisenberry. of Massachusetts, to be a member of the Na- The President declared a major disaster in tional Mediation Board for a term expiring Micronesia and ordered Federal aid to sup- July 1, 2005, vice Magdalena G. Jacobsen, plement national and State recovery efforts term expired. in the area struck by Tropical Storm Chata’an, including flooding, mudslides, and Neil McPhie, landslides, on July 2–4. of Virginia, to be a member of the Merit Sys- tems Protection Board for the term of 7 years July 12 expiring March 1, 2009, vice Beth Susan In the morning, the President had intel- Slavet, term expired. ligence and FBI briefings and then met with the National Security Council. Quanah Crossland Stamps, In the afternoon, the President met with of Virginia, to be Commissioner of the Ad- the newly established Corporate Fraud Task ministration for Native Americans, Depart- Force. Later, he traveled to Camp Greentop, ment of Health and Human Services, vice MD, a residential camp for disabled children Gary Niles Kimble, resigned. and adults, where he toured facilities and participated in camp activities. He then trav- Submitted July 11 eled to Camp David, MD. The President announced his intention to Ben S. Bernanke, nominate the following individuals to be of New Jersey, to be a member of the Board members of the National Council on Dis- of Governors of the Federal Reserve System ability: Glenn Bernard Anderson, Marco A. for the unexpired term of 14 years from Feb- Rodriguez, Milton Aponte, Linda Wetters, ruary 1, 1990, vice Edward W. Kelley, Jr., Joel Kahn, and David John Wenzel. resigned. The President declared a major disaster in Vermont and ordered Federal aid to supple- Richard F. Healing, ment State and local recovery efforts in the of Virginia, to be a member of the National area struck by severe storms and flooding on Transportation Safety Board for a term expir- June 5–13. ing December 31, 2006, vice George W. Black, Jr., term expired.

Donald L. Kohn, of Virginia, to be a member of the Board Nominations of Governors of the Federal Reserve System Submitted to the Senate for a term of 14 years from February 1, 2002, vice Laurence H. Meyer, resigned. The following list does not include promotions of members of the Uniformed Services, nominations Alia M. Ludlum, to the Service Academies, or nominations of For- of Texas, to be U.S. District Judge for the eign Service officers. Western District of Texas, vice Harry Lee Hudspeth, retired.

Submitted July 9 John M. Reich, of Virginia, to be Vice Chairperson of the Frederick W. Gregory, Board of Directors of the Federal Deposit of Maryland, to be Deputy Administrator of Insurance Corporation, vice Andrew C. the National Aeronautics and Space Adminis- Hove, Jr.

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Checklist Released July 11 of White House Press Releases Transcript of a press gaggle by Deputy Press Secretary Scott McClellan and Council of Economic Advisers member Mark McClellan The following list contains releases of the Office of the Press Secretary that are neither printed as Statement by the Press Secretary on disaster items nor covered by entries in the Digest of assistance to Micronesia Other White House Announcements. Statement by the Press Secretary on the Council on Bioethics issuance of its first re- Released July 6 port on the subject of human cloning Statement by the Press Secretary on disaster Fact sheet: President Renews Call for Pre- assistance to Guam scription Drug Coverage in Medicare Announcement of nomination for U.S. Dis- Released July 8 trict Judge for the Western District of Texas Transcript of a press gaggle by Press Sec- Released July 12 retary Ari Fleischer Transcript of a press briefing by Press Sec- Released July 9 retary Ari Fleischer Transcript of a press gaggle by Press Sec- Statement by the Press Secretary on disaster retary Ari Fleischer, Treasury Secretary Paul assistance to Vermont H. O’Neill, and Commerce Secretary Donald Transcript of a press briefing by Office of L. Evans Management and Budget Director Mitch Fact sheet: A New Ethic of Corporate Re- Daniels sponsibility Announcement: A New Ethic of Corporate Responsibility Acts Approved Released July 10 by the President Transcript of a press briefing by Press Sec- retary Ari Fleischer NOTE: No acts approved by the President Statement by the Press Secretary on the clo- were received by the Office of the Federal sure of Sari Nusseibeh’s Al Quds University Register during the period covered by this offices in Jerusalem issue.

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