Weekly Compilation of Presidential Documents

Monday, December 24, 2007 Volume 43—Number 51 Pages 1599–1635

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Addresses and Remarks Letters and Messages See also Bill Signings Christmas 2007, message—1631 Little Sisters of the Poor, remarks following Eid al-Adha, message—1615 a visit to Jeanne Jugan Residence—1612 Holiday greetings to members of the Armed Maryland, remarks following a visit with Forces, message—1631 wounded troops and their families at the Kwanzaa 2007, message—1631 National Naval Medical Center in Bethesda—1614 Proclamations Radio address—1599 Veterans Affairs Department, swearing-in National Mentoring Month, 2008—1615 ceremony for Secretary Peake—1626 To Implement an Amendment to the Virginia, remarks on the national economy Dominican Republic-Central America- and a question-and-answer session in Free Trade Agreement— Fredericksburg—1600 1629 Walter Reed Army Medical Center, remarks following a visit with wounded troops— Statements by the President 1629 Death of Rep. Julia M. Carson—1600 Bill Signings James B. Peake as Secretary of Veterans Energy Independence and Security Act of Affairs, Senate confirmation—1599 2007, remarks—1612 Mortgage Forgiveness Debt Relief Act of Supplementary Materials 2007, remarks—1628 Acts approved by the President—1634 Prevent Taxation of Payments to Virginia Checklist of White House press releases— Tech Victims and Families Act, remarks— 1634 1614 Digest of other White House Interviews With the News Media announcements—1632 News conference, December 20—1616 Nominations submitted to the Senate—1633

Editor’s Note: The President was at Camp David, MD, on December 21, 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 Distribution is made only by the Superintendent of Docu- ments, Government Printing Office, Washington, DC 20402. PRESIDENTIAL DOCUMENTS The Weekly Compilation of Presidential Documents will be furnished by mail to domestic subscribers for $80.00 per year Published every Monday by the Office of the Federal Reg- ($137.00 for mailing first class) and to foreign subscribers for ister, National Archives and Records Administration, Washing- $93.75 per year, payable to the Superintendent of Documents, ton, DC 20408, the Weekly Compilation of Presidential Docu- Government Printing Office, Washington, DC 20402. The ments contains statements, messages, and other Presidential charge for a single copy is $3.00 ($3.75 for foreign mailing). materials released by the White House during the preceding The Weekly Compilation of Presidential Documents is also week. available on the Internet on the GPO Access service at http:// The Weekly Compilation of Presidential Documents is pub- www.gpoaccess.gov/wcomp/index.html. lished pursuant to the authority contained in the Federal Reg- There are no restrictions on the republication of material ister Act (49 Stat. 500, as amended; 44 U.S.C. Ch. 15), under appearing in the Weekly Compilation of Presidential Docu- regulations prescribed by the Administrative Committee of the ments. Federal Register, approved by the President (37 FR 23607; 1 CFR Part 10).

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Statement on Senate Confirmation of they still have not come through with these James B. Peake as Secretary of funds. Veterans Affairs This week, Congress considered a defense authorization bill. An authorization bill is a December 14, 2007 pledge to spend money. Under such a bill, Congress will make a promise to fund our I am pleased that the Senate unanimously troops in combat. But a congressional prom- confirmed Dr. James Peake to serve as Sec- ise, even if enacted, does not pay the bills. retary of Veterans Affairs. Dr. Peake is a It is time for Congress to provide our troops decorated veteran, highly skilled physician, with actual funding. and proven leader who has devoted his ca- The stakes are high for our men and reer to serving America’s men and women women on the frontlines. Our troops are in uniform. His decades of expertise in com- striking blows against the terrorists and ex- bat medicine and health care management tremists in Iraq and Afghanistan, and these have provided him with a thorough under- funds are critical to their continued success. standing of the Department’s responsibility The funds I have requested include money to care for America’s veterans. to carry out combat operations against the One of his first tasks as Secretary will be enemy. They include money to train the Iraqi to ensure that my administration continues and Afghan security forces to take on more to swiftly implement the recommendations responsibility for the defense of their coun- of the Dole-Shalala Commission on Wound- tries. They include money for civilian agen- ed Warriors. I am confident that he will build cies deployed in the field with our military upon our record of improving care, reducing to help build local governments and create bureaucracy, and ensuring that our veterans jobs. And they include money for intelligence receive the benefits they deserve. operations to protect our troops on the bat- tlefield. NOTE: The statement referred to former Senator Congress has had plenty of time to con- Bob Dole and former Secretary of Health and sider the emergency funds our troops need. Human Services Donna E. Shalala, Cochairs, Time is running out. And Pentagon officials President’s Commission on Care for America’s say that continued delay in funding our Returning Wounded Warriors. This item was not troops will soon begin to have a damaging received in time for publication in the appropriate issue. impact on the operations of our military. Congress’s responsibility is clear: They must deliver vital funds for our troops, and they The President’s Radio Address must do it before they leave for Christmas. Our men and women on the frontlines will December 15, 2007 be spending this holiday season far from their Good morning. In a time of war, America’s families and loved ones. And this Christmas, top priority should be to ensure that our they deserve more than words from Con- troops on the frontlines get the funding they gress; they deserve action. need. So beginning in February, I submitted Thank you for listening. detailed funding requests to Congress to NOTE: The address was recorded at 11:15 a.m. fund operations in the war on terror. Con- on December 14 in the Cabinet Room at the gress has had months to pass this funding. White House for broadcast at 10:06 a.m. on De- Unfortunately, with just days to go before cember 15. The transcript was made available by Members leave for their Christmas vacation, the Office of the Press Secretary on December

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14 but was embargoed for release until the broad- important to say; why would he bother to cast. The Office of the Press Secretary also re- come to a place out in the country? And the leased a Spanish language transcript of this ad- answer is, because this is where jobs are cre- dress. ated; this is where dreams are lived; this is where values are upheld. And so I’m proud Statement on the Death of to be with you. It kind of reminds me of Representative Julia M. Carson being in Texas, to come to a place where December 15, 2007 there’s just down-to-earth people that are trying to do what’s best for their families and Laura and I are saddened by the death their communities. And so I’m honored to of Representative Julia Carson. Throughout be with you. I appreciate you letting me her decade of service in the U.S. House of come by. Representatives and her nearly 20 years in Ralph, thanks for the invitation. I also want the Indiana General Assembly, Representa- to thank Bob Hagin. And I’m proud to be tive Carson served her constituents in Indi- here with Congressman Eric Cantor from anapolis with passion and commitment. She Richmond, Virginia, as well as newly elected was revered as a champion for building Congressman Rob Wittman. Appreciate you strong and safe communities, working to end being here. Good luck; I’m looking forward homelessness, improving financial literacy for to working with you. I want to thank the all Americans, and helping her constituents speaker of the House of Delegates—you call achieve and maintain the dream of home them delegates, right? Yes. Bill Howell, a ownership. good man; good to see you, Mr. Speaker. Ap- Julia was a dedicated and admired public preciate you being here. Senator-elect Rich- servant who will be missed by her many ard Stuart, is that right? Yes, appreciate you, friends and colleagues both at home in Indi- Richard. Thanks for coming as well. John ana and in our Nation’s Capital. Our thoughts [James] * Lacy, past president of Rotary and prayers are with her family and friends. International has bothered to come over. Mr. Lacy, thank you for serving. Remarks on the National Economy You know, I tell the people of our country and a Question-and-Answer Session every time I can that the great strength of in Fredericksburg, Virginia America is not our military—although I in- tend to keep it strong—or the size of our December 17, 2007 wallets. But the great strength of America The President. Thank you, all. Please be are the hearts and souls of our fellow citizens seated. Ralph, thanks for the invitation. who take time out of their everyday lives to Thanks for the gift; it was planted by the first love a neighbor like they would like to be George W. [Laughter] I’m glad to be here loved themselves. That’s what rotaries mean at the Rotary Club. I have spent some quality to me. times at rotary clubs, whether it was asking People are saying, ‘‘Well, how can we best for votes or selling baseball tickets. [Laugh- foster the well-being of the community in ter] I could never get admitted to any of the which we live? What can we do as loving clubs in Texas cause my voice wasn’t good human beings to work with our youth like enough. [Laughter] But I’m proud to be with you do at this—here at this rotary club?’’ And you. Thanks for letting me come by and share so I want to thank you for what you’re doing. some thoughts with you about our economy, I thank you for adding to the great compas- what’s happening in Washington. And if time sion of our country. Societies change one permits, I’ll be glad to answer some questions heart and one soul at a time. And I hope if you have any. you have found what others have found— I also want to thank the chamber for hav- that if you’re part of that helping somebody’s ing me as well. Appreciate what you’re doing. live improve, it improves your own. People say—they’re probably wondering why would—old George W. has got something * White House correction.

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Laura sends her very best. She’s doing just somebody. And so we’ve had a pretty good fine. She’s a fabulous wife, great mother, and economic run here in the country, 6 years a wonderful First Lady. And she is—she and of growth. We’ve had 51 straight months of I are having the great joy of welcoming peo- increased job employment. It’s the largest— ple to the White House during the holiday longest period of uninterrupted job growth season. It’s a pretty spectacular place when in the Nation’s history. People are working; you see the trees and all the great garlands. productivity is high. In other words, our And they do a fine job of decorating the economy is becoming more productive as a White House. I just put on the lights on the result of the advent of new technologies. And trees. [Laughter] But we’re having a joyous that means people are more likely to get paid time. more. I want to talk a little bit about our economy And yet there are some challenges. There’s and some of the challenges we face and then a credit issue and a housing issue. In other answer some questions. First of all, I put words, what I’m about to tell you is, is that forth what some would consider a controver- the Congress cannot take economic vitality sial proposal—that’s in Washington, DC; at for granted. There are some positive things least those in Washington consider it con- Congress can do to make sure that the econ- troversial—and that is, cutting taxes on peo- omy continues to grow and people are work- ple helps the economy. There’s quite an ap- ing and realizing dreams, and there’s some petite for your money in Washington. People negative things they can do. And the most can figure out all kinds of ways to spend the negative thing the Congress can do in the taxpayers’ money. My attitude was, particu- face of some economic uncertainty is to raise larly in the face of recession and after a ter- taxes on the American people. If you want rorist attack, that the best way to help this to figure out a way to slow this economy economy recover was to let people keep down, just start taking money out of people’s more of their own money. pockets or making it harder for small busi- And so I worked with the Congress to cut nesses to grow and invest. taxes on everybody who pays taxes. Now, So one thing I want to share with you today sometimes in the Nation’s Capital, they’ll say, is, I’ll veto any tax increase. I don’t think ‘‘Well, some people get tax cuts and others Congress needs more money. I think they don’t.’’ That’s not my attitude. My attitude need to learn how to set better priorities. was, if you’re paying taxes, you ought to get And that’s what you’re watching play out tax relief; and so we cut taxes. And I mean here in Washington. The President submits we cut them on everybody. And when you a budget, and then the Congress can either cut them on individuals, it turns out you also accept it, run over it, ignore it. And then the are cutting taxes on small-business owners. Congress—or the Constitution wisely gives Most small businesses in America are sub- a President veto power in order to make sure chapter S corporations, or limited liability the President stays involved in the process. partnerships, which means that the owners And I’m pleased to report that we’re making of the companies pay individual taxes. In some pretty good progress toward coming up other words, the company is subject to the with a fiscally sound budget, one that meets individual tax rates. And so cutting individual priorities, helps on some emergencies, and taxes not only helps consumers and families, enables us to say that we’ve been fiscally but it also helps small businesses. sound with the people’s money. And the plan worked. If you think about The next couple of days will be interesting where we were coming out of 2001 and to watch. As I say, I’m hopeful, and I appre- where we are today, you can’t help but say ciate those on Capitol Hill are working hard the plan worked. Cutting taxes helped stimu- to come up with a good appropriations pack- late economic growth. Why? Because most age. And that appropriations package, by the new jobs are created by small-business own- way, must also include funding for our troops ers. And if you let a small-business owner in harm’s way. have more money to save or invest or spend, Now, I understand people in Washington it means he or she is more likely to hire and people around the country may not have

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agreed with my decisions on how to protect if you ever heard of the Alternative Minimum America. I know that, and that’s fair. That’s Tax—[laughter]—this was aimed at super- what democracy should be all about. When rich years ago, but the plan wasn’t indexed people have a difference of opinion with the for inflation. And all of a sudden, middle class President, they ought to feel comfortable ex- citizens are fixing to be stuck with this bill. pressing that difference. And it turns out, And Congress needs to fix the AMT, and they quite a few citizens are willing to do that. need to do it quickly. [Laughter] And the Senate, by the way, passed a good But there should be no difference of opin- version of an AMT fix, so you’re not going ion when it comes to making sure our troops to get stuck with a higher tax bill. And by have the funding they need, and there should the way, it’s just not individuals. Again, if be no difference of opinion about whether you’re incorporated through a limited part- our commanders on the ground ought to be nership or subchapter S, you’ll end up paying those who decide or those who recommend higher taxes as well. But they need to move to the President and the Congress the best quickly on this piece of legislation because way to proceed. And so we’ll be watching the longer they delay, the more likely it is very carefully as the Congress works through that there’s $75 billion of refund checks that how to spend your money coming down the will be late. People are going to be won- stretch here before Christmas. They can’t dering why they didn’t get their refund check have any gimmicks—accounting gimmicks in on time. And the answer is, it’s because there. You know, sometimes they’ll use the there’s been a delay in the AMT fix. Now, appropriations process to pass law that other- the positive news is the Senate passed a good wise didn’t make it to the floor of the House bill, and the House of Representatives needs or the Senate. I’m sure that doesn’t happen, to get it done quickly. Mr. Speaker, in—[laughter]. Sometimes it People are concerned around this country happens in Washington, though. [Laughter] And so I’m looking forward to working about housing. Here’s my attitude on hous- with them to come up with a good bill. But ing: One, the Government should never bail they need to fund these troops. And they out lenders; two, some people bought a don’t need to be putting artificial timetable house that they shouldn’t have been in the for withdrawal on the money that we’re ask- market; three, there are speculators who ing, to make sure the men and women who thought they could get—buy nice, one of courageously serve the United States of these reset mortgages, and flip it, make some America have what it takes to do the job money. I’m sure none of them are in the they’ve been asked to do. Chamber, but nevertheless—[laughter]— If the Congress can’t get the job done— that’s what happened. But there are some in other words, those jet fumes will start to people that are creditworthy that should be be moving out pretty soon here, later on this encouraged to stay in their homes. week—if they can’t get the job done, then And the issue—the housing issue has I’ve got a suggestion for them: And just pass changed. I can remember the first home I a 1-year continuing resolution. That’s all they bought in Midland, Texas. I remember going got to do. If they can’t get the job done— down to the savings and loan and sitting like I’m hopeful they will—then all they got down with the savings and loan officer and to do is just take what’s called a continuing negotiating with the savings and loan officer. resolution; get the people’s business done Well, this day and age, you know, these mort- that way; and go on home. They got to make gages have been bundled. So the savings and sure they fund the troops, though, on the loan doesn’t own the mortgage anymore, or way out of town. the bank doesn’t loan the mortgage anymore. There’s another issue that’s coming down The local lending institute doesn’t loan the I want to bring your attention to—and by mortgage anymore; it’s owned by some inter- the way, the House looks like they’re coming national group, perhaps, or it’s been bundled up with a reasonable plan, Eric and Rob. So into an asset. And so there’s hardly anybody we’re watching very carefully. I don’t know to negotiate with. And so some lenders aren’t

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sure where to turn. They have creditworthi- Two other issues, and then I’ll answer ness; they may get pinched as their interest some questions. One, I know if you’re a rates reset. small-business owner, you’re concerned But it seems like to me it’s in our interests about health care, and you should be. And to help people stay in their homes. And the fundamental question facing the country there’s—we’ve got a couple of ways to do is, what can the Government do to make so. One is through the FHASecure. It’s a way health care more affordable and more avail- for the— and his Depart- able? And there’s a classic philosophical di- ment, which is HUD—to help creditworthy vide in Washington. On the one hand, there people renegotiate and stay in their homes. are those who believe that government is the Congress needs to get a bill to my desk that fix, that government can best decide the allo- will make it easier for FHA to continue to cation of resources in health care. And then help people stay in their homes. We’re not there are those of us who believe that we bailing people out; we’re helping them refi- ought to push for more consumer—a con- nance their money. We’re helping them, you sumer-driven health care system. know, own—we’re helping them stay in a Part of the problem in health care is that part of the American Dream is what we’re there is no consumerism. I shouldn’t say ‘‘no doing, and it’s worthwhile to do that. consumerism,’’ obviously that’s a—there is And the other is what’s called HOPE some consumerism. But when a third party NOW, and this is the Treasury Department pays your bill, you tend not to worry about bringing the private sector together—lend- price. If somebody else pays your bill, you’re ers, investors, mortgage counselors—to help not really an active consumer. And therefore, people renegotiate, to help people under- the question is—part of the issue with price stand what is possible when it comes to fi- is, how do you encourage consumerism? And nance and recourse and stay in your house. here’s one way: change the Tax Code. The So I am concerned; I know you’re con- Tax Code now says if you work for corporate cerned about the housing industry. We all America—big company—you get a tax ben- should be. We’ve been building a lot of efit. But if you’re a small-business owner or homes, and all of a sudden, fewer buyers are you’re out on your own, you have to buy showing up. And it’s going to take a while health care with after-tax dollars. to work through the housing bubble. But we And therefore, there’s a disincentive for can mitigate some of the issues, and I’m con- people to be purchasing health care on the cerned about people who are creditworthy individual market, and therefore, the indi- enough to live in their homes not being able vidual market hasn’t grown. So I propose to to deal with the resets. And so I just want Congress that we allow families, everybody, to let you know we got a strategy. regardless of your employment status, to be And Congress can help. They can pass the able to deduct $15,000 off your income taxes, FHA modernization bill, which will help us. or $7,500 as an individual, all aimed at level And the other issue that they can pass that the playing field so that an individual market would really help the homeowner is that begins to grow. So step one to consumerism when you renegotiate, if you happen to have is for individuals to have more options in the a mortgage that you’re going to have trouble marketplace so they can become involved di- meeting, you can find somebody to renego- rectly in buying better insurance for their tiate with, and you do. And part of that loan families. may be forgiven for tax purpose—you actu- Step two is for there to be transparency ally have to pay tax. It doesn’t make any sense in pricing and quality, and the Federal Gov- if somebody is struggling to stay in their ernment can help. We’re a huge health care house and the Tax Code says you get to pay consumer. And one of the things that Sec- more tax after you’ve renegotiated your loan. retary Leavitt is doing is saying that if you’re So we need to fix the Tax Code, and the interfacing with the Federal Government, Senate bipartisan way is passing a good piece then you got to post your price. I don’t know of legislation. I hope the House takes it up. how many of you ever go to your doctor and

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say, ‘‘What are you charging, you know, com- most doctors aren’t very good writers to pared to your neighbor?’’ I suspect you do begin with. [Laughter] And so we’re using that when it comes an automobile, but you government leverage to help information don’t when it comes to buying—to pur- technology take hold so that there is higher chasing health care. I never have, frankly. I productivity increases in health care, less in- don’t remember asking my buddies in Mid- efficiency and waste. My dream is for all of land, who are my doctors, ‘‘How much are us to have a medical electronics record with- you charging relative to the person down the in a decade. My only caveat is, I want to street?’’ make sure that your material is private and So—but the Government can help with that nobody can access it; it’s your material pricing transparency. So we’re now getting alone. But nevertheless, it makes sense for people to—providers to not only post a price, all your medical records to be on a single but also we’re developing a qualitative index chip, which will help take the inefficiencies so that people are able to compare price and out of health care and help keep the pressure quality. Now, that—this is a novel concept; off cost. I readily concede. But if you’re interested Finally, if you’re truly interested in making in more consumerism, then there has to be sure health care is available and affordable, transparency in the health care industry. then you need to join the outcry on these Third, there needs to be products like frivolous and junk lawsuits. There are too health savings accounts expanded. If you’re many lawsuits running too many doctors out a small-business owner, I strongly urge you of practice. We have an ob-gyn crisis in to look at a health savings account for a way America, in some States, because junk law- to help your employees or yourself save for suits are making it impossible for people to everyday expenses—medical expenses on a practice their skills. And they just—they get tax-free basis and coupled with a catastrophic health plan. The whole purpose there is to sick of it and say, ‘‘I’m out of here. I don’t give you more decisionmaking in your health want to practice anymore.’’ And plus every care—with your health care and portability. time there’s a lawsuit, it drives up the cost Because one of the issues facing America, of medicine. That means you have to pay particularly if you’re a youngster, is, can you more. Because why? Because many doctors take your health care plans with you? It turns practice defensive medicine. They say, ‘‘Well, out most young Americans have changed if I’m fixing to get sued, I want to make sure jobs, like, seven or eight times by the time I administer as many tests as possible, so that they’re 35 years old. And the inability to carry my practice and my techniques can stand up a good health care plan with you, a plan that in a court of law,’’ which runs up the cost you own, a plan of which the dollars inside of medicine. your plan are earning tax-free, creates frus- Now, obviously there ought to be—needs trations for people. This economy is chang- to be recourse for malpractice. Nobody wants ing. And therefore, the health care industry to deny anybody their right to have a claim needs to change with it and provide flexibility in the court of law. That’s one of the great for our workers. things about America, is if you’ve got a claim, Fourth, small businesses ought to be al- you ought to be able to take it to the court lowed to pool risk across jurisdictional of law. But we can—and we can pass law boundaries. Well, that means if you’re a res- that protects somebody’s right to go to the taurant owner here, you ought to be able to court of law and do something about these pool your employees with a restaurant owner junk lawsuits. And, you know, it’s tough. Boy, in Texas so that you can go into the market the trial lawyers are tough in Washington. and buy insurance at the same discounts that In all due respect to the trial lawyers here, larger companies get. you’re very powerful politically. We kept— Fifth, health care needs to be better at in- we got the bill out of the House of Rep- corporating information technologies. I don’t resentatives. Time and time again it got know, I mean—I suspect you’ll find some of blocked in the . your docs still writing files by hand. That’s So here’s a commonsense way to move for- a little antiquated these days. The trouble is, ward to help small businesses and individuals

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deal with health care costs. And that stands like a golf cart. [Laughter] It will be a normal in contrast to those who really believe the size vehicle. Federal Government can run it better than On electricity, there’s a lot of talk about the individual consumer. And I’m not saying electricity; I understand that, and there those are bad people who articulate that posi- should be. If America wants to solve its de- tion; I’m just telling you I think it’s wrong pendency on foreign sources or wants to for America. solve its environmental—deal with environ- Finally, energy. We’re too dependent on mental concerns, we need to aggressively oil from overseas. That sounds strange for spread nuclear power. If you’re generally an a Texas guy to say; I know. But dependency environmentalist, if you’re worried about on oil creates economic security issues and greenhouse gases, then you need to be in national security issues and environmental the forefront of supporting nuclear power- issues. So I proposed a bill that would en- plants. If you’re worried about whether or courage—let me just—most oil is consumed not we can continue to have the electricity through automobile usage. So I want to talk necessary to foster economic growth and vi- to you about automobile usage and elec- tality, you ought to be for nuclear power. I tricity, and then I’ll answer some questions. know that’s not necessarily politically correct I have proposed a bill, and I’m hopeful in some circles, but I believe the engineering it will get a pass by the Congress, that in- is safe, and I know we can come up with creases CAFE standards, which is the fuel ways to dispose of the waste in a safe way. economy standards, in a reasonable way with- And so those are some of my thoughts, out sacrificing automobile safety. And I’ve other than I hope you all have a great holiday also proposed that we reduce gasoline usage season. I’d be glad to—I hope you can tell by 20 percent over the next 10 years by using I’m an optimistic fellow. We’ve been through alternative fuels. Now, I wouldn’t have done a lot over the last 7 years; we really have. that if I didn’t think it was practical and pos- But I’m absolutely convinced this country is sible. strong and vibrant. We’re in the lead when If you’re a hog grower—which I suspect it comes to the freedom agenda. I believe there’s not too many around here—but the decisions that have been made over the you’re a little concerned about the use of eth- last 7 years are going to lead peace. Some- anol with corn at its base because the price times I know it’s hard for you to tell it. But of corn is high; ethanol is beginning to spread I’m convinced that when people look back in the Midwest, and it’s causing the price of at this era, they’re going to say,‘‘Thank good- corn to go up. ness the United States of America never But that’s going to be relieved as a result abandoned its belief that freedom is uni- of research and development. One of these versal.’’ days, the scientists tell me—and I believe— I happen to believe there is an Almighty, that we’ll be able to manufacture fuel for and a gift of that Almighty to every man, your automobiles from switchgrass or bio- woman, and child is freedom. And I believe mass or wood chips. And then all of a sudden, it’s in our Nation’s interest to act upon that if you really think about it and are optimistic belief. And so I come to you today as a man about America’s capacity to use technology honored to serve a great country, with some to change our way of life, then all of a sud- ideas on how we can stay strong economi- den, you begin to see the rationale for saying cally, and a great faith in the capacity of free- that we can reduce gasoline usage by 20 per- dom to bring the peace we want. cent over the next 10 years. I believe it’s com- And with that, I’ll be glad to answer any ing; I really do. questions. From anybody other than the I also believe that a part of that mix is press corps. [Laughter] If I wanted to have going to be new battery technologies that will a press conference, I’d call a press con- enable you to drive the first 40 miles on elec- ference; right, Herman [Ken Herman, Cox tricity. And for those of you who are worried News]? about the size of the vehicle, it won’t look Mr. Herman. [Inaudible]—Mr. President.

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The President. I can’t hear you. He’s from velop a field. And they tend to drill in the Texas; forgive him. [Laughter] winter, on ice, and they move the rig off in Yes, ma’am. the summer during the melt. So we’ve got the technologies capable of finding oil and Oil Industry gas reserves and hardly leaving a scratch on Q. I’m from that county outside Texas the environment up there. But it’s become called Oklahoma. a cause celebre with a lot of the special inter- The President. There you go. We love ests in Washington, DC. Oklahoma in Texas, except when you come So I can’t tell you why people aren’t for down and beat our football teams. [Laughter] refinery expansion. I’m just telling you they Q. That is a bad thing. ought to be. There are some examples where They seem to be closing a lot of the refin- refineries are expanding, like down there in eries and capping off different oil wells, et Mississippi, for example, in the—Pascagoula. cetera. Are they saving our oil? What are they A big refinery has gotten permits on its cur- doing? rent footprint to expand its capacity, and The President. What happens—you that’s going to be good for the country. It’s know, an oilfield plays out. And many of the going to take a while. We will be using oil fields you’re referring to in Oklahoma or and gas for a while. And it’s going to take parts of Texas are just old, and there’s little a while to diversify. Therefore, for the sake to recover. of our consumers and our economy, we need One of the interesting things that is taking to make sure we got reliable supplies as we place around the country, though, is that the develop new technologies. And new tech- higher price of oil has caused people to invest nologies are coming. It’s going to be an excit- in new technologies, and the new tech- ing era, in my judgment. nologies are enabling some to be able to get Thank you. Yes, sir. more of the reserves out of the reservoirs. But when a person caps off an oil well, plugs President’s Domestic Agenda an oil well, at this price it pretty well means Q. [Inaudible]—a commercial lender here it’s played out; there’s not left. in Fredericksburg. Now, refineries is a different issue. We The President. How do you like the mort- haven’t built any new refineries. Now, we’ve gage plan? [Laughter] Cause I don’t expanded some refineries. We’re not build- know—— ing new refineries, and it makes no sense not Q. Well, the mortgage plan is a little bit to increase the supply of gasoline. If you’re tough. And I’m a commercial lender as well, concerned about the price of gasoline, one so it’s great to hear from the President. Just way to deal with it is to encourage the expan- two issues that we’re looking at against valu- sion of refineries. ating financial statements, daily on the in- And so one of the proposals I put forth come statements, health care expenses, fuel to the Congress was, as we shut down bases expenses—what about my big customers that through the BRAC process, why don’t we are driving diesel-powered equipment? What provide land on those old bases for refineries if fuel goes to 3.25 a gallon to $5.00, while and to encourage the expansion of refineries at the same time that you’re having an esca- here in the United States. And it’s just—any- lated health care expenses. So it’s great to way, it’s—there are some who—I don’t know see you here today and preaching that mes- why they wouldn’t be for something as sage because, again, revenues aren’t nec- commonsensical as that. essarily expanding in this soft economy we’re I’ll tell you another thing we ought to be in. So what happens in ’08 and ’09 when doing is, we ought to be exploring for oil and the—— gas in the Arctic—up in Alaska. You can’t The President. No, I appreciate that. believe the technologies that are now avail- That’s why I’m against raising the gasoline able. You can drill on a small pad, without tax. In other words, ‘‘We need to raise the creating much of an impact on the environ- gasoline tax.’’ It comes up about every year ment, and explore laterally, in order to de- in Congress. I’m against it for precisely that

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reason, and—is somebody for it over there? about highway funds, a couple of points. First [Laughter] I said, the Federal gasoline tax. of all, I don’t know if you know this or not, [Laughter] Mr. Speaker, I wasn’t talking but the Public Works Committee I guess is about the State gasoline tax. [Laughter] But the largest in the House; is that right, Eric? it’s—yes, look, that’s the concern, and I fully Yes. And the way they get the bills out of understand the pinch some of your folks are the House onto the floor is everybody gets going to feel. a special project. And so it’s the largest com- Having said that, this economy is pretty mittee, and then everybody gets them a spe- good. There are some—there’s definitely cial project, and then the bill moves, and some storm clouds and concerns, but the un- then the funding formulas kick in. The way derpinning is good, and we’ll work our way it ought to be done is they ought to adjust through this period. But I couldn’t agree with the funding formulas based upon rational you more that there’s—your people have got measures, and then pass these bills without some concerns. There’s just some funda- earmarks, without special projects. That’s just mental questions that we’re going to have to the way it works. A lot of the money is spent make on issues like health care. The quick before it even—the highway bill makes it to fix, at least what sounds like a quick fix, is the floor, and it’s just not a good system. going to be, don’t worry, we’ll handle it for Secondly—and so therefore, they need to you at the Federal Government. change the system. This isn’t going to answer And to me that would mean that the great- your question specifically. And it’s not an in- est health care system in the world would tentional dodge, by the way, it’s a slight head toward mediocrity quite rapidly. We dodge—[laughter]—because you know, you don’t want rationing, people standing in lines. don’t want your President walking around We want the great innovation and the private promising this project to this person or this medicine to flourish. So my only caution is, project to that person. That’s just not a— is that people see the health care rising; I that’s not what the President’s job is to do. hope they don’t leap to what sounds like a The President’s job is to think strategically simple solution that would lead to a long- for the country and help get fiscal sanity into term problem for the country. the process. Yes, sir. Secondly, no question that we’re going to have to rethink for the longterm how to fund Transportation Infrastructure/Fuel highways. Right now the highways are fund- Efficiency Standards ed as a result of gasoline taxes, as you know. Q. You may have noticed that transpor- Not all of the money from the gasoline tax, tation is an issue for us in this area, and—— by the way, goes to highway projects. There’s The President. Actually, the helicopter a lot of mass transit money spent; there’s didn’t get stuck in any traffic. [Laughter] other things that the money is spent on. I’m Q. I was wondering—— not making a qualitative judgment; I’m just The President. Yes. What traffic jam? telling you that not every dime collected [Laughter] Anyway, yes it is; it’s a huge issue. from the highway tax—for the highway tax Q. Yes, sir. And Homeland Security is goes to highways. moving more people in our area here, espe- Automobile—I just told you that we’re cially up on 610, and moving a lot of their going to become more efficient with our offices. I was wondering if the Federal Gov- automobile, we’re raising our fuel efficiency ernment would be able to help us with our standards. In other words, cars and new tech- transportation problem, so that we could bet- nology and electricity are going to change ter facilitate Homeland facility—Homeland how often people go to the pump. And so Security’s problem. the source of revenues that had been kind The President. You’re not looking for that of the staple of the interstate highway system special earmark, are you? [Laughter] since the fifties is going to change a lot. And Q. No, no, sir. so how—what’s a rational way forward? I The President. Yes, you are—at least talked to Secretary Peters about this, and I you’re honest. [Laughter] Here’s the thing have instructed her to think about alternative

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methods of financing highway growth, such tional loans are tied to the Fannie Mae and as user fees in lieu of/or in combination with Freddie Mac limit of 417,000. current tax structure. The President. Yes. Now why would you do that? Well, if your Q. And in this area, that works for some automobiles are going to get less miles per folks, but the interest rate on jumbo loans gallon, then you’re going to have to figure is now 1 percent higher than conforming out—and you need additional highways, loans. Has there been some effort to try to you’re going to have to figure out a way to increase Fannie Mae or Freddie Mac? raise the money. And the user fee is a good The President. There has, in lieu—in con- way to do it. And if you happen to go to junction with reforming of the two institu- a user fee system, one of the interesting tions to make sure that they stay focused. things that are being used is differential pric- The reform would make sure they stay fo- ing. In other words, you pay a different price cused on their core missions. But there has depending upon the day you drive; in other been—and Secretary Paulson has been work- words, a market-oriented system. If one of ing with Congressman Frank in the House the things you’re concerned about is massive on this very issue, which is to raise the limit traffic jams on your highways, in and out of on jumbos in conjunction with reforms. I your community, then it may make sense to don’t know if it’s going to pass this time or say to somebody, if you’re going to ride be- not. I should have checked before I came. tween 9 and 4, you pay a higher fee than But it definitely is a part of the reform agen- somebody riding before 9 or after 4. It’s con- da that we’re working with the House on. gestion pricing. It’s worked in some parts of Yes, sir. the world. I definitely think we ought to look Iran at it. In other words, what I’m telling you is, Q. Mr. President, my name is Mike West. the funding system is antiquated relative to I’m a Stafford resident here. It’s a pleasure the challenges we’re going to be facing. And to have—— so Secretary Peters is a good, smart soul who The President. How long have you been is looking through different alternatives. It’s living here, Mike? going to be a tough issue, as you found out Q. Seven years. We moved from Charles- locally, and it’s going to be a tough issue, ton, West Virginia. it’s hard to get Washington to change some- My question is, I have three children in times. But we will do our part. the school system here, and I’m very con- She’s, by the way, very much engaged in cerned about their well-being, living in this making sure that the air transportation sys- country. And you’ve done a wonderful job tem is more modern. One thing we did over of protecting our Nation, but I’m concerned Thanksgiving, and we’ll again do for Christ- about the nations like Iraq, who now have mas, is take away some of the military flight nuclear weapons—— lanes and provide them for commercial air- The President. Iran. lines. But the truth of the matter is, we need Q. Iran and Iraq both. a more rational way of allocating gates The President. Not Iraq. [Laughter] amongst airlines, so that there is rational— Q. But my question would be about Iran. a market-driven system in place. Anyway, I’m How is the diplomatic channels coming not going to answer your question on the spe- through there, as far as—— cial deal. [Laughter] Yes, sir. I’ll leave that The President. No, I appreciate that, to your Congressman. [Laughter] thanks. You all read a report the other day that said that Iran had, but halted, a covert military nuclear weapons program. I said in Fannie Mae and Freddie Mac my press conference that that report came Corporations out, that that report says to me, when you Q. [Inaudible]—Fredericksburg and Staf- read it carefully, Iran was a threat; Iran is ford area is a high cost-of-living area, and a threat to peace; and Iran will be a threat all the proposals for FHA, VA, and conven- to peace if we don’t stop their enrichment

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facilities because—I said that because there the U.N., and Condi Rice is working on a are three components to a nuclear weapons third. program. The first component is having the My message to the Iranian people is, one, materials necessary to make a bomb. And you we respect your history and traditions. It’s can either purchase materials that have al- your Government that is isolating you from ready been processed, or you can learn how the world. It’s the decisions that your Gov- to process yourself. That’s the enrichment ernment has made that is making it more component. difficult for you to put food on the table, That program is still active, in spite of the making it more difficult for your family to fact that most of the world has said to the realize their dreams. And there’s a better way Iranians, stop your enrichment. And that’s forward for the Iranian people than to have where you’re watching the diplomacy play a Government that is nontransparent, that’s out. The ability to weaponize that material, hidden a program, and that refuses to listen in other words, to make it into something to the demands of most of the civilized world, that explodes, that part of the program is which is, give up your—suspend your pro- what the intelligence people thought was on- gram. going at one time and suspended. Interestingly enough, today Russia sent And finally, in order to be in a position some enriched—or is in the process of send- to say you’re a nuclear weapon power, you’ve ing enriched uranium to Iran to help on their got to be able to deliver the weapon by mis- civilian nuclear reactor. If that’s the case, if siles. And they’ve spent a lot of time testing the Russians are willing to do that, which I their missiles. So two of the three compo- support, then the Iranians do not need to nents in order to become a power, nuclear learn how to enrich. If the Iranians accept power with a weapons system, is—they’re ac- that uranium for a civilian nuclear power- tive. Now what I told the people—first of plant, then there’s no need for them to learn all, I think Iran is a danger to peace. And how to enrich. And so I appreciate your ques- I believe that for a variety of reasons. I be- tion. lieve with a weapon they would be very de- Yes, sir. stabilizing. I believe with a weapon we need to take their threats seriously about what they Care for Wounded Military Personnel have said about one of our allies, Israel. And Q. I’m Jeff Davis. I’m a retired marine therefore, my attitude hasn’t changed toward Vietnam veteran, and I want to be assured Iran. If somebody had them a weapons pro- that our wounded warriors are getting the gram, what’s to say they couldn’t start it up health care that they deserve. tomorrow? Since they tried to hide their pro- The President. Yes, I appreciate you say- gram before, how would we know? ing that. I want to be assured of that too, So my point on the Iranian issue is this: Mr. Davis. First of all, thank you for serving. They owe an explanation to the world. They I feel a particular sense of obligation to make need to tell the world why they had a pro- sure that the man or woman I send into com- gram that they didn’t report. They need to bat gets the very best care possible. I will make it clear to the international organiza- tell you, sir, that the doctors and nurses pro- tion, the IAEA, what that program was all viding our military health care are fabulous. about, and why they hid it from the world. And the health care these troops are getting So Iran is a danger, and we will continue is excellent—no ands, ifs, or buts about it. to work with friends and allies to convince The bureaucracy, however, needed to be them that it is in their interests to suspend reviewed and fixed. You’re taking these kids, their enrichment programs. And if they do, unlike Vietnam, that are getting wounded in there’s a way forward for them that is dif- Iraq, they’re coming straight off the battle- ferent from the way that—the path they’re field, getting fine care there. If need be, headed down now. They’re heading down a they’re in Germany getting intensive care. path of isolation right now, and economic And they’re here in the United States of sanctions. We passed two resolutions out of America. Laura and I are going to Bethesda

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and Walter Reed on Wednesday and Thurs- know it. Meaning, you use gasoline or eth- day. Two reasons: One, to tell those troops anol and the engine works either way. we love them; and two, to tell those docs Secondly, the fuel blends probably in this and nurses who are working overtime to give area are 10 percent, but out in the Midwest them fabulous care, this country appreciates they’re up to 90 percent. And the reason why what they’re doing. is this market is going to develop regionally. Now, as you read, the Walter Reed deal, And by that I mean, obviously—what’s inter- that was a bureaucratic foulup. Secretary esting is that the most significant penetration Gates moved on it very quickly. It should of high-concentrated ethanol is in the Mid- show you our intensity in making sure that west, where there’s corn. And if this area our troops get the very best care. The vet- doesn’t have the fuel stocks necessary to erans system, in our judgment, can be fixed make ethanol, there’s not a pipeline system and improved. And that’s why I asked Bob that will enable a lot of ethanol to get here. Dole and Donna Shalala to come together And so what you’re going to have is local pro- to make sure that veterans’ benefits match duction or regional production to fuel the ca- the needs of these troops coming out of com- pacity of you to be able to have more ethanol bat in Iraq and Afghanistan. available at the pump. We’ve got to make sure that—here’s what The issue is the manufacturing of the happens. You get transferred from the De- product in the region as opposed to once the partment of Defense into the Veterans Ad- product is here in the region, that you’re ca- ministration, and sometimes that transfer pable of finding an outlet that will deliver isn’t too smooth. So we believe there ought it to you. That’s why this research into dif- to be a seamless system. There needs to be ferent raw materials for ethanol is going to health information technology for our troops. be very important. So you can envision, if Our families need to have a case study—a you can start using wood chips—you got you case worker with them all the time. some wood around here—and all of a sudden So we’re making good improvements, and it becomes a viable source of input into an we’ve addressed the bureaucratic shortfalls. ethanol plant. We’ll probably find others. But you need to But out Midwest, I repeat to you—I think know, sir, that I am absolutely convinced I they call it E–90, or something like that, can look the parents of—and loved ones of which is 90 percent ethanol, is now available the troops in our eyes and say, your kid is in a lot of pumps. And one of the concerns going to get fabulous health care, and they about the folks who live out there is, how deserve it. do you get more of it available? And the mar- Yes, sir. ketplace tends to work. People start showing up demanding ethanol, and all of a sudden somebody figures out how to supply it. Alternative Fuel Sources But it’s making pretty good market pene- Q. Thank you, Mr. President. With regards tration in the Midwest. It’s an interesting to research and development into mileage in map to look at, and I believe the reason why cars—and I’m a hybrid owner myself—— is because, since corn is now the main source The President. There you go. of ethanol, that’s where you get to get your Q. ——is there anything that is being done corn. But hopefully this research and devel- to—I understand the issue with the ethanol opment in a relatively quick period will come plants is there’s no outlet for ethanol, other up with different alternative sources for eth- than 10 percent over at Exxon. Is there any- anol. And I think it will, I really do, otherwise thing being done with that respect? I wouldn’t have put the 20–10 initiative. The President. Yes. Listen, a couple Alrighty. Yes, sir. points there. First of all, the first hurdle to the use of ethanol is to have automobiles that Health Care Reform are capable of using ethanol. And most auto- Q. I’m a physician, and I happen to agree mobiles are flex-fuel vehicles. You’ve prob- with your attitude about health care. And I ably—you’ve got one, and you just don’t think that the consumerism aspect of it needs

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to be emphasized. I think we’re going to have spend money on medical research, so that too many options out there to offer to the we can stay on the leading edge of change. American public, and we won’t be able to One more, and then I’ve got to get home. afford all of them. We can’t hardly afford it Yes, ma’am. now. But do you have new legislation out that Stock Market you may propose for next year that would try to implement some of the ideas that you Q. Hi, Mr. President, I’m Kate Hopper, have, other than the health savings account? and I wanted to extend my holiday wishes The President. AHPs, we’ll run it again, to you and your family from all of our family. associated health plans. That’s the plan that The President. Thank you, thank you. I’m enables small businesses to pool across juris- fired up about the holidays. Q. I wanted to ask you—I’m a financial dictional boundaries. Again, that’s economies adviser here in Fredericksburg, and I wanted of scale, economies of spreading risk, which to ask you what your thoughts are on the to me is a rational plan. It’s opposed by dif- market going forward for ’08, and if any of ferent groups, by the way. It sounds logical your policies would make any difference? and sounds rational, but evidently such a plan The President. No, I appreciate that. Was gets crossways with some of the interests in it Kate? Washington, otherwise it would have passed. Q. Yes. Secondly, we’ll run the tax deductibility The President. No. [Laughter] I’m not again, which would be a significant change going to answer your question. If I were an in enabling your patients to be treated just investor, I would be looking at the basic fun- like the patient that works for a large cor- damentals of the economy. Early on in my poration. And that’s going to be a vital part, Presidency, somebody asked me about the Doc, of making sure that people stay—mak- stock market, and I thought I was a financial ing sure that we have a consumer-driven sys- genius, and it was a mistake. [Laughter] The tem. fundamentals of our—of this Nation are We may run tort reform again; I’ll see what strong. it looks like. As I say, we passed it out of One of the interesting developments has the House twice, if I’m not mistaken; went been the role of exports in overall GDP nowhere in the Senate. So there’s three alter- growth. When you open up markets for natives for you right there. goods and services, and we’re treated fairly, How’s your practice? we can compete just about with anybody, Q. Doing well, thank you. anywhere. And exports have been an integral The President. That’s good. I’m going to part, at least of the 3d quarter growth. But tell you something, we have fabulous health far be it for me—I apologize—for not being care in America, just so you know. I think in the position to answer your question. But it’s very important—before people start grip- I don’t think you want your President opining ing about the health care system here—and on whether the Dow Jones is going to— of course there’s always grounds for com- [laughter]—be going up or down. plaint—just to compare it with other systems I appreciate you giving me a chance to around the world. And one of the reasons come by. In the old days, the entourage our system is expensive is because some of wasn’t quite as big, but we’re glad that you the new technologies that are coming on line, were—you welcomed us all. I really do hope they happen to be saving lives. And can we your families have a blessed Christmas and become more efficient deliverers of health a holiday season. May God bless you all, and care? You bet. Are there things we can do? may God continue to bless our country. Absolutely. But whatever we do, we don’t Thank you very much. want to undermine the fact that we got great NOTE: The President spoke at 11:25 a.m. in Yak- health care. I’m very proud of our docs, a-Doo’s restaurant at the Holiday Inn—North. In nurses, researchers. There’s some just fabu- his remarks, he referred to Ralph Sutton, presi- lous research going on in our country. To dent, Stafford Rotary Club; Robert Hagin, former me that’s in our national interest that we executive director, Morgan Stanley Investment

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Mgmt.; and former Senator Bob Dole and former does Laura. And one way to let our troops Secretary of Health and Human Services Donna know that people care deeply about their E. Shalala, Cochairs, President’s Commission on safety and their well-being is to send them Care for America’s Returning Wounded Warriors. a Christmas card, which you all are fixing to do here. So I thank you for that as well. Remarks Following a Visit to the I finally want to thank our musician. Little Sisters of the Poor’s Jeanne [Laughter] The man hadn’t lost a step. [Laughter] Thank you, sir, for your beau- Jugan Residence tiful—I particularly liked ‘‘The Eyes of December 18, 2007 Texas.’’ And so we say to you all, Merry Christmas. Listen, thank you all for welcoming us. May God continue to bless you. May God Laura and I are honored to be with you. Sis- continue to bless the United States of Amer- ter, thanks for your hospitality, and more im- ica. Thank you for your hospitality. portantly, thank you for showing the Nation what is possible when people with loving NOTE: The President spoke at 10:53 a.m. In his hearts reach out to a neighbor in need. It remarks, he referred to Mother Benedict de la is easy to feel the great compassion of the Passion (Armstrong), Superior and president of sisters here in this hall as you help make the Jeanne Jugan Residence, Little Sisters of the Poor; Donald W. Wuerl, Archbishop of Wash- somebody else’s Christmas a joyous time of ington; and Joe Dignazio, resident, Little Sisters celebration. of the Poor. First, there are volunteers here in the community who have taken time out of their busy schedules to volunteer to help some- Remarks on Signing the Energy body. And that’s one of the messages of the Independence and Security Act of Christmas season: that I hope our fellow citi- 2007 zens reach out and find a neighbor in need, December 19, 2007 find out somebody who needs a loving pat on the back, or somebody who could use a Thank you all. Please be seated. Mr. Sec- little help in learning how to read, or an el- retary, thank you for that introduction. We’re derly citizen who wants to know that some- all pleased to be here at the Department of body cares for them. It doesn’t take much Energy. I particularly want to thank the em- effort; it takes a little prioritization. And dur- ployees here for their daily efforts to help ing a season in which we count our blessings, our country meet its energy needs. Thanks I would hope those of us who are blessed for your hard work. Sam, thank you for your help somebody else. leadership. And there’s no better place to come to see As Sam mentioned, I firmly believe this that happening than right here. The Little country needs to have a comprehensive en- Sisters of the Poor are renown for their great ergy strategy, and I appreciate the Members hearts and wonderful compassion. Isn’t that of Congress for understanding that as well. right, Archbishop? [Laughter] Two years ago, I was pleased to stand with And so Laura and I are thrilled to be here Members—many of whom are here—to sign with you all. I do want to thank the volun- a bill that was the first major energy security teers—high school students, some going to legislation in more than a decade. At the the schools nearby, some home-schooled, time, I recognized that we needed to go even who have heard the universal call to love a further. And so in my State of the Union, neighbor just like you’d like to be loved your- I proposed an aggressive plan to reduce oil self. consumption of gasoline by 20 percent over I want to thank you all for making cards 10 years. for our troops in harm’s way. As I worked Today we make a major step with the En- the tables, I was most thankful that people ergy Independence and Security Act. We here said that they pray for our troops, the make a major step toward reducing our de- safety of our troops. And so do I. And so pendence on oil, confronting global climate

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change, expanding the production of renew- This is nearly a fivefold increase over current able fuels, and giving future generations of levels. It will help us diversify our energy our country a nation that is stronger, cleaner, supplies and reduce our dependence on oil. and more secure. It’s an important part of this legislation, and I do welcome members of the Cabinet I thank the Members of Congress for your who’ve joined us. I particularly want to thank wisdom. the Speaker and the leader. I appreciate your Second, the legislation also—will also re- leadership on this important issue. Speaker duce our demand for oil by increasing fuel Pelosi is here with Congressman Steny economy standards. Last January, I called for Hoyer, House majority leader. Welcome, the first statutory increase in fuel economy Mr. Leader. Leader Reid has brought Mem- standards for automobiles since they were bers of the Senate with him: Senator Inouye, enacted in 1975. The bill I’m about to sign Senator Bingaman, Senator Stevens—I think delivers on that request. It specifies a na- that’s Senator Domenici there in disguise tional standard of 35 miles per gallon by with a—[laughter]. Looking pretty hand- 2020, which will increase fuel economy some, isn’t he? I appreciate Congressman standards by 40 percent and save billions of Dingell and Congressman Markey, Con- gallons of fuel. This bill also includes an im- gressman Gordon. These are all leaders on portant reform that I believe is essential to their respective committees that helped making sure that we realize this strategy. It bring this bill to my desk. I also want to wel- allows the Department of Transportation to come all the other Members of Congress issue what are known as ‘‘attribute-based who have joined us. standards,’’ which will assure that increased One of the most serious long-term chal- fuel efficiency does not come at the expense lenges facing our country is dependence on of automobile safety. This is an important oil, especially oil from foreign lands. It’s a part of this bill, and again, I thank the Mem- serious challenge. And Members of Congress bers for taking the lead. up here understand the challenge, and so do The bill also includes revisions to improve I. Because this dependence harms us eco- energy efficiency in lighting and appliances. nomically through high and volatile prices at It adopts elements of the Executive order I the gas pump, dependence creates pollution signed requiring Federal Agencies to lead by and contributes to greenhouse gas admis- example in efficiency and renewable energy sions. It threatens our national security by use. making us vulnerable to hostile regimes in Taken together, all these measures will unstable regions of the world. It makes us help us improve our environment. It is esti- vulnerable to terrorists who might attack oil mated that these initiatives could reduce pro- infrastructure. jected CO2 emissions by billions of metric The legislation I am signing today will ad- tons. The U.N. climate change meeting in dress our vulnerabilities and our dependence Bali last week—our Nation promised to pur- in two important ways. First, it will increase sue new, quantifiable actions to reduce car- the supply of alternative fuel sources. I pro- bon emissions. Today we’re doing just that. posed an alternative fuel standard earlier this The legislation I’m signing today will lead to year. This standard would require fuel pro- some of the largest CO2 emission cuts in our ducers to include a certain amount of alter- Nation’s history. native fuels in their products. This standard The legislation I’m about to sign should would create new markets for foreign prod- say to the American people that we can find ucts used to produce these fuels. This stand- common ground on critical issues. And ard would increase our energy security by there’s more we can accomplish together. making us less vulnerable to instability—to New technologies will bring about a new era the instability of oil prices on the world mar- of energy. So I appreciate the fact that Con- ket. gress—in the omnibus spending bill that I’m The bill I sign today takes a significant step going to sign later on—recognizes that new because it will require fuel producers to use technologies will help usher in a better qual- at least 36 billion gallons of biofuel in 2022. ity of life for our citizens. And so we’re going

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to spend money on new research for alter- Remarks on Signing a Bill To Prevent native feedstocks for ethanol. I mean, we un- Taxation of Payments From the derstand the hog growers are getting nervous Hokie Spirit Memorial Fund to because the price of corn is up. But we also Virginia Tech Victims and Families believe strongly that research will enable us December 19, 2007 to use wood chips and switch grass and bio- mass to be able to develop the ethanol nec- It’s my honor to welcome the president essary to help us realize the vision outlined of Virginia Tech, the mayor of Blacksburg, in this bill. the Governor of the Commonwealth of Vir- ginia, and, of course, distinguished members of the congressional delegation, here as I sign I appreciate very much the fact that we’re a bill that’s going to help the folks who suf- going to fund additional research on new bat- fered mightily on that day when a gunman tery technologies to power plug-in hybrids. killed their loved ones. It’s a good piece of We’re spending money on innovative ways legislation. I appreciate members from both to capture solar power. We’re making—pro- parties working on it. viding incentives for nuclear energy. If we’re And I asked the President how—what the serious about making sure we grow our econ- spirits are like there at Virginia Tech, and omy and deal with greenhouse gases, we have he said they’re strong. And I’m not surprised. got to expand nuclear power. Having been there for that memorial cere- mony, I left with the distinct impression that of all the communities in America that could It is going to take time to transition to this deal with a tragedy, it’s the Virginia Tech new era. And we’re still going to need hydro- community. carbons. And I hope the Congress will con- And so I want to say to the families who tinue to open access to domestic energy still suffer, we think about you. And to the sources—certain parts of the Outer Conti- students and faculty and alumni and leader- nental Shelf in ANWR. And to protect us ship of Virginia Tech, thank you for helping against disruptions in our oil supply, I ask those who suffer reconcile and recover from Congress to double the current capacity of the grief they feel. So it’s my honor to sign the Strategic Petroleum Reserve. this important piece of legislation.

NOTE: The President spoke at 11:37 a.m. in the With these steps—particularly in the bill Oval Office at the White House. In his remarks, I’m about to sign—we’re going to help Amer- he referred to Charles W. Steger, president, Vir- ginia Tech; Mayor Ron Rordam of Blacksburg, ican consumers a lot. We’ll help them by di- VA; and Governor Timothy M. Kaine of Virginia. versifying our supplies, which will help lower H.R. 4118, approved December 19, was assigned energy prices. We’ll strengthen our security Public Law No. 110–141. by helping to break our dependence on for- eign oil. We’ll do our duty to future genera- tions by addressing climate change. Remarks Following a Visit With Wounded Troops and Their Families at the National Naval Medical Center And so I thank the Members of Congress. in Bethesda, Maryland I appreciate the fact that we’ve worked to- gether, that we can show what’s possible in December 19, 2007 addressing the big issues facing our Nation. The President. Admiral, thank you very This is a good bill, and I’m pleased to sign much for your hospitality. You know, it’s a it. great honor to come here. It’s an honor to see the troops who have been wounded; and NOTE: The President spoke at 10:25 a.m. at the it’s an honor to hug their families; and it’s Department of Energy. H.R. 6, approved Decem- an honor to see the fabulous care that these ber 19, was assigned Public Law No. 110–140. folks receive. You know, our citizens wonder

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whether or not troops in harm’s way will get Laura and I send our best wishes for a superb medical care. And the answer is: Ab- memorable celebration. solutely; they get fantastic medical care. George W. Bush Sometimes there’s bureaucratic snafus that we’re straightening out. But our citizens NOTE: An original was not available for should never question whether or not the verification of the content of this message. nurses and docs and caregivers are giving it their all in a professional way. They’re saving lives, and they’re healing hearts at the same Proclamation 8212—National time. And so it’s a wonder what takes place Mentoring Month, 2008 here, Admiral. And I want to thank you and December 19, 2007 the Colonel for taking the lead. And you know, I’m—I know Americans join me in By the President of the United States praising our troops and honoring their fami- of America lies. Merry Christmas to you. A Proclamation Rear Adm. Jeffries. Thank you, sir. It’s Millions of Americans lend their time, tal- an honor to serve them and you. ent, and energy to become mentors and The President. Yes, sir. Thank you all. make a difference in children’s lives. During Thank you. National Mentoring Month, we honor these caring individuals for their dedication to changing our country one heart and soul at NOTE: The President spoke at 2:14 p.m. Partici- pating in the visit were Rear Adm. Richard R. a time. Jeffries, USN, commander, and Col. Leon E. By sharing their knowledge and experi- Moores, USA, deputy commander for integration, ences, mentors serve as examples for young National Naval Medical Center. people and help teach them the skills they need to succeed in life. They also provide stability, instill important values, and build Message on the Observance of Eid confidence in those they assist. Mentors are al-Adha soldiers in the armies of compassion, and December 19, 2007 they encourage children to set goals and achieve their dreams. I send holiday greetings to all Muslims My Administration is committed to help- celebrating Eid al-Adha. ing our Nation’s children realize their full po- During Eid al-Adha, Muslims around the tential by expanding opportunities for Ameri- world reflect on Abraham’s unwavering faith cans to mentor. To raise awareness of the and his trust in God when asked to sacrifice challenges facing our youth and encourage his son. These four days are a time for Mus- adults to connect with young people through lims to honor Abraham’s obedience by cele- family, school, and community, First Lady brating with family and friends and showing Laura Bush is leading the Helping America’s gratitude for the many blessings bestowed by Youth initiative. Through the USA Freedom God. This holiday also helps ensure the im- Corps, we are connecting individuals with portant values of compassion and devotion volunteer opportunities, including mentors are passed on to future generations. who work with young people in schools and America is a land of many beliefs, and our community organizations. By encouraging society is enriched by our Muslim citizens. Americans to mentor, we are doing our part The kindness, generosity, and goodwill dis- to see that more of America’s children grow played by American Muslims during this spe- into strong, confident, and successful adults. cial occasion and throughout the year have I appreciate all those who reach out to contributed to the strength and vitality of our young people and inspire future generations Nation. May all those observing Eid al-Adha to pass on this rich tradition that makes our find love and warmth during this joyous holi- country strong. I urge all Americans to get day. involved in mentoring programs and to visit

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the USA Freedom Corps website at volun- parties for their hard work in these areas. teer.gov to learn more about mentoring op- I’m pleased that we have been able to end portunities in their communities. Together, this year on a high note by moving beyond we can build a culture of service and foster our differences and achieving important re- a more compassionate society that recognizes sults for the American people. the value and purpose in every single human This week, Congress passed legislation to life. protect middle class families from the burden Now, Therefore, I, George W. Bush, of the Alternative Minimum Tax, without President of the United States of America, raising taxes. Unfortunately, Congress passed by virtue of the authority vested in me by this legislation after a lengthy delay. It’s going the Constitution and laws of the United to—the delay is going to add time it takes States, do hereby proclaim January 2008 as to process tens of billions of dollars in re- National Mentoring Month. I call upon all funds. And so we will work hard—now that Americans to recognize the importance of the bill is passed, we will work hard to mini- mentoring, to look for opportunities to serve mize the impact of the congressional delay as mentors in their communities, and to ob- so that Americans can get their refund checks serve this month with appropriate activities as soon as possible. and programs. Congress passed a good energy bill. The In Witness Whereof, I have hereunto set legislation I signed yesterday will reduce our my hand this nineteenth day of December, country’s dependence on foreign oil by in- in the year of our Lord two thousand seven, creasing the supply of alternative fuel sources and of the Independence of the United and increasing fuel economy standards. It States of America the two hundred and thir- demonstrates America’s leadership in con- ty-second. fronting climate change. George W. Bush Congress also passed legislation to help homeowners struggling to make their mort- [Filed with the Office of the Federal Register, gage payments. The bill I’m going to sign 8:45 a.m., December 21, 2007] this afternoon increases the incentives for borrowers and lenders to work together to NOTE: This proclamation will be published in the Federal Register on December 26. refinance loans. It will allow American fami- lies to secure lower mortgage payments with- out facing higher taxes. This is a tax reform The President’s News Conference bill. It takes away the penalty that a home- December 20, 2007 owner—a tax penalty a homeowner will re- ceive if he or she renegotiates the loan to The President. Good morning. I hope you a lower rate, to a lower value for the house. all enjoyed the holiday reception at the Finally, Congress reached agreement on White House as much as Laura and I enjoyed a spending bill to fund the day-to-day oper- it. We took an inventory of the silverware, ations of the Federal Government. They and this year, only a few pieces were missing. passed this bill without raising taxes. They So, like, if you see Gregory [David Gregory, eliminated many of the worst policy riders NBC News], tell him to bring them back. that would have never been approved [Laughter] I’ve decided to come in and visit through the ordinary legislative process. I ap- with you because you’re heading off on the preciate that they included a down payment holidays, and so are we, and we wish you on the funding request for our troops on the happy holidays. frontlines in Afghanistan and Iraq without an I think recent days have been a moment artificial timetable of withdrawal. These that the country can be proud of. In the past brave men and women are risking their lives few days, we have stopped a tax increase on to protect us, and they deserve the full sup- the middle class families, we improved our port of the U.S. Government. energy security, we delivered relief to strug- I’m disappointed that Congress resorted to gling homeowners, and we funded our passing all this spending in one massive, troops. I want to thank the members of both more than 1,400-page omnibus bill, rather

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than considering and passing individual ensure that our intelligence professionals spending bills in the normal process. The have all the tools they need to keep us safe. omnibus bill was approved at the last minute, I hope the Members of Congress enjoy nearly 3 months after the end of the fiscal their holiday break; I intend to enjoy mine. year. When Congress wastes so much time We have a great deal of work in the months and leaves its work to the final days before ahead. Next year is an election year, but that Christmas, it is not a responsible way to run does not relieve us of our responsibility to this Government. carry out the people’s business. The Amer- Another thing that’s not responsible is the ican people did not elect us to govern in odd number of earmarks that Congress included years and campaign in even years. They ex- in a massive spending bill. Earmarks are spe- pect us to get things done. That’s what we’ve cial interest items that are slipped into big accomplished over the past few weeks, and spending bills like this one, often at the last we need to carry this momentum into next hour, without discussion or debate. Congres- year. I’m going to do my part, and I call upon sional leaders ran in the last election on a the leaders of both parties on Capitol Hill promise that they would curb earmarks. And to do their part. they made some progress, and there’s more And now I’ll be glad to answer some of transparency in the process, but they have your questions, starting with AP man [Ter- not made enough progress. The bill they just ence Hunt, Associated Press]. passed includes about 9,800 earmarks. To- Central Intelligence Agency gether with the previously passed defense Interrogation Tapes spending bill, that means Congress has ap- Q. Mr. President, there’s ambiguity in the proved about 11,900 earmarks this year. And statement that you have no recollection so I’m instructing Budget Director Jim about the existence and destruction of the Nussle to review options for dealing with the CIA interrogation tapes. Why can’t you say wasteful spending in the omnibus bill. yes or no about the tapes and their destruc- I’m also disappointed that Congress failed tion? And, regardless, do you think the de- to pass legislation to ensure that our intel- struction of the tapes was a responsible thing ligence professionals can continue to effec- to do? tively monitor terrorist communications. The President. It sounds pretty clear to Those of us in public office have no greater me when I say I have—the first recollection responsibility than stopping new attacks on is when Mike Hayden briefed me. That’s our country. And this summer, Congress pretty clear. Secondly, I am confident that passed a bill that—called the Protect Amer- the preliminary inquiry conducted by the AG ica Act, which strengthened our ability to col- and the IG of the CIA, coupled with the lect foreign intelligence on terrorists over- oversight provided by the Congress, will end seas. The bill closed dangerous gaps in our up enabling us all to find out what exactly intelligence; it was a good piece of legislation. happened. And therefore, over the course of It wasn’t perfect, but it was good. Unfortu- these inquiries and oversight hearings, I’m nately, Congress made this law effective until going to reserve judgment until I find out February 1st of 2008, as if the terrorist threat the full facts. is going to go away on February the 1st, 2008. I know I’m going to be asked about this The first priority of Congress when it re- question a lot as time goes on. I’m just going turns in the new year must be to pass a good to prepare you—until these inquiries are bill and get it to my desk promptly. They complete, until the oversights are finished, have a duty to give our professionals the tools then I will be rendering no opinion from the necessary to protect the American people. podium. The bill should include liability protection for companies that are facing multibillion-dollar President Vladimir Putin of Russia/ lawsuits, only because they are believed to Russian Elections have assisted in the efforts to defend our Na- Q. Vladimir Putin has just been named tion following the 9/11 attacks. And it must Time magazine’s ‘‘person of the year.’’ And

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he has signaled that he intends to become leadership, the way they’re running Con- Prime Minister. You said once that he had gress, and your relations with the leaders? been wily about his intentions, but now that The President. You know, I don’t view— he’s made those clear, what does it say about I just don’t view life as zero-sum. I think all the state of democracy in Russia? of us deserve credit for getting some things The President. You know, I’m looking for- done. The President constantly has to make ward to seeing him at the alumni meeting sure that the executive branch is involved in of the ‘‘men of the year,’’ or the ‘‘persons the process, and one way is to use the veto. of the year.’’ I don’t know when it’s going And the veto wouldn’t have been effective to be, but—look, I presume—I haven’t read without close coordination and consultation the article, but I presume they put him on with Republican leaders in the House and there because he was a consequential leader. the Senate. And in that, we made the veto And the fundamental question is, consequen- effective. It then meant that negotiations tial to what end? What will the country look could proceed with the President involved. like 10 years from now? And so I really don’t sit here and say, My hope, of course, is that Russia is a ‘‘Well, you know, he won; they lost,’’ or country which understands there needs to be ‘‘They won; he lost’’—it’s just not my na- checks and balances and free and fair elec- ture—because I think what ended up hap- tions and a vibrant press; that they under- pening was good for the country. I think it’s stand Western values based upon human good that we ended up with a spending bill rights and human dignity are values that will that met 933, but also dealt with some emer- lead to a better country. That’s my hopes. gencies. I think it’s good that we funded our Now, your speculation as to whether or troops without an artificial timetable for not he’ll be the Prime Minister: I don’t know withdrawal. I think it’s good for the country if he is; I haven’t talked to him about it. And that that happened. until that happens, I think we better just I know it’s good that we passed an impor- watch and see. What will be interesting next tant piece of energy legislation. I proposed year is how the Russian President carries on that in my State of the Union, but it required his business—the new Russian President. In a Congress willing to work with the executive other words, we’ll be together probably a branch and to work among themselves to get couple of times next year, and it will be inter- the bill passed. So there’s plenty of credit esting to see how foreign policy is conducted to go around. and what the role of President Putin may be I know we live in an environment here in or not be. I just don’t know yet, so we’ll just Washington where—I’m not saying you try wait and see how it—what happens. to stir this up, but sometimes it’s beneficial John [John Yang, NBC News]. to constantly harp on, well, they don’t get along here, or maybe they can’t agree here. Cooperation With Congress/Legislative It’s so-and-so versus so-and-so—it’s an an- Agenda tagonistic world from some people’s point of Q. Mr. President, a year ago when you had view. I try to make it less that way and to your year-end press conference, the Demo- focus on high priorities. crats had just taken control of Congress. And we got a lot of priorities for next year. They said that one of their main goals was And one of my priorities—this is—I under- to end the war in Iraq. They were talking stand this is a bone of contention, but one a lot about very contentious times ahead. As of the priorities is to make sure they don’t you just said, the Congress has now passed run up the taxes on people. And my attitude again, without strings, money for the war, is, if you run them up on one area, it’ll be- and you’ve achieved a lot of your goals and come a habit that will be hard to break, and have gotten a lot of things you wanted from then they’ll try to run them up on other areas. Congress without a lot of give-and-take with And the reason I feel strongly about that is, them by talking tough with firm veto threats. I don’t want to undermine the economy by What does this say about the Democratic raising taxes.

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There’s some areas where we can work to- be a little careful. It took our Congress till gether, like reauthorization of No Child Left the last minute to get things done. I mean, Behind, although I will warn Congress that— the legislative process is not all that smooth in that the current bill doesn’t expire, if they at times. And they’ve got a lot of work to try to weaken the current bill, I’ll veto any do; don’t get me wrong. I mean, I am not attempt to weaken it. But I believe we can suggesting that we shouldn’t, as a Govern- strengthen it. I spoke to Senator Kennedy ment, continue to press them. What I am on this issue and Congressman Miller and suggesting, though, there is a functioning Senator Enzi and Congressman Boehner Government. Your statement was, security about how to strengthen No Child. didn’t provide room for a government to I mean, there’s a lot of things we can do stand up and function. Well, it’s happening. together, I guess what I’m saying, John. And And so therefore—and therefore, we will so I leave the year feeling good about our continue to press them on de-Ba’ath law, capacity to get some important things done. Provincial election laws, power sharing with And of course I’m grateful that the troops the central Government and the Provinces, got funded. One of the—one of my concerns and oil law. from the last year was that Congress initially But as I’ve reminded you from this po- spent a lot of time on passing resolutions and dium, they are distributing oil revenues to sentiment and trying to put—trying to tell the Provinces. There is revenue sharing, and our commanders how to conduct the war. there’s local reconciliation taking place. And And it just didn’t work. But they spent a lot a lot of times it’s local politics that will drive of time on the subject, which meant when national politics. Are we satisfied with the we came down to the end of the year, there progress in Baghdad? No. But to say nothing was a lot of unfinished business. But we got is happening is just simply not the case. it done. Yes, Bill [Bill Plante, CBS News]. 2008 Presidential Election Q. I understand you do not want to discuss Progress in Iraq the Presidential campaign—— Q. Mr. President, despite the military suc- The President. That’s true—— cess of the surge, there’s no evidence that Q. ——let me ask you a question one of its intended benefits, making it easier about—— for the Iraqis to form a unity government, The President. ——so therefore, why has had any effect. Refugees won’t come don’t you ask me about the Presidential cam- home from Syria. There was an opinion poll paign. I’ll confirm it. this week which said that most of the Iraqis Q. Let me ask you about all Presidential surveyed blamed us, said things would be campaigns—— better when the U.S. leaves. What bench- The President. Sure. [Laughter] marks can the Iraqi Government meet that Q. You’ve been in office for 7 years now. would change this? What do you want them You must have some pretty strong opinions to do? about what it takes to sit in the Oval Office. The President. Well, first of all, I don’t What is important to you? Is experience in agree with your premise that there’s no poli- government important? Are a candidate’s re- tics taking place in Iraq. There is a func- ligious views important to you? tioning Government. They did pass a budget The President. It’s a good attempt to get last year, and they’re in the process of passing me in the race. [Laughter] What’s important their budget this year. I am pleased to report to me will be this: the principles by which that there’s been two readings of a de- people will make decisions. People develop Ba’athification law to the Council of Assem- principles all different kinds of ways. But you blies. can’t be the President unless you have a firm Well, Bill, I mean, if your standard is— set of principles to guide you as you sort if you’re trying to judge the Iraqi Parliament through all the problems the world faces. based upon our own Congress’s ability to get And I would be very hesitant to support bills done—is that what you’re saying—I’d somebody who relied upon opinion polls and

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focus groups to define a way forward for a The President. Part of the review is to President. assess how best to make sure our coalition And so my question to—if I were asking partners realize there is a coherent strategy questions to people running for office, I’d of which they are an integral part, all aiming say, what are the principles that you will to make sure that there is a presence that stand on, in good times and bad times? What will assure the Afghan Government and the will be the underpinning of your decisions? Afghan people that people will be trying to What will it be? Because a President needs help them with their security. to be consistent, and a President needs to It is—it makes sense for us to constantly understand that what may look like a non- review our strategies in a variety of theaters. issue today could be a big issue tomorrow. That’s what good governance is: You analyze And secondly I would say, how do you in- the situation a year after the previous strategy tend to get advice from people you surround to determine whether or not—what worked yourself—who are you going to surround and what didn’t work. What did work was yourself? And what process will you have in the—you might remember last year; I guess place to ensure that you get the unvarnished there was a lot of talk about the Taliban surge opinion of advisers? Because whoever sits in or the Taliban offensive. And General that Oval Office is going to find this is a com- McNeill informed us that the only team plex world, with a lot of issues coming into that’s going to be on the offense is American the Oval Office—a lot—and a great expecta- and NATO allies and other allies. tion in the world that the United States take And we were on the offense. And the the lead. And so my question would be, how Taliban got hit hard last year. The question, do you intend to set up your Oval Office so of course, is—just like in Iraq—is there a that people will come in and give you their followup to the security gains? In other advice? words, is life changing better for the average And so those would be the two questions citizen? That’s the question that we all got I’d ask. And—— to be looking at. Unity governments are im- Q. It sounds like you think the principles portant, but does the average citizen realize are more important than experience or spe- that a free society is in his or her interest. cific religious views. And I visited with President Karzai on the The President. No, sometimes you de- SVTS the other day, and it’s a question I basi- velop your principles as a result of experi- cally asked him. I said, we were successful ence. Sometimes you develop your principles militarily; what’s happened in your country based upon your—how you were raised or that you can point to that indicates that your religious experiences. I just want to you’re taking advantage of better security in know whether or not somebody has got a certain places? sound set of principles from which they will And he pointed out some interesting not deviate as they make decisions that will things. He talked about the—I think it’s 5 affect the peace and security of our country. million children now going to school. It was Bret [Bret Baier, FOX News]. an interesting measurement for him. He says, ‘‘I believe we’re taking advantage of the secu- Progress in Afghanistan rity because more of our children are getting Q. Thank you, Mr. President. Good morn- educated.’’ He told us a story—I can’t re- ing. You’ve announced a review of the situa- member the exact Province—about when he tion in Afghanistan. The last time the Amer- was part of the struggle against the Taliban. ican people heard about a review of the war, Somebody got wounded; he took them to the it ended up in a surge of U.S. troops in Iraq. hospital—there was nothing there. You Can the U.S. expect a surge of U.S. troops know, it was like they called it a hospital. in Afghanistan? And do you agree with many It was just kind of a rundown place where analysts who say that the real problem in Af- a person couldn’t get much good health care. ghanistan—or a major problem is that the And now, all of a sudden, he talks about an NATO allies are not getting it done or avoid- expanding health care system and the infant ing the fight there? mortality rate dropping. He talks about the

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roads that are being built so that the average given a chance to be free, they will do so. citizen there can get their crops to market. Now, I understand some don’t believe that. And we checked into his assertions, and It’s kind of like we’re the only ones that can they’re true. So this is a society that is evolv- be free. It’s kind of the ultimate isolationism, ing. isn’t it? And the question then is, is it in our Now, it takes awhile for societies that have Nation’s interest to help others realize the been brutalized by tyranny and wracked by blessings of liberty? And I—clearly, the Bush war to meet expectations. So the questions foreign policy says it is, because I believe it’s I ask on Iraq and Afghanistan are: Is there going to yield peace—and particularly impor- progress? Are people feeling better about tant given the fact that we’re in an ideological life? And of course we press their govern- struggle against people who use murder to ments to work to come together and get achieve political objectives. budgets passed, or in Iraq’s case, de- And we’ve faced these kind of people be- Ba’athification law or oil laws. And those are fore in our past. And the question is, does all important. But also what’s important is it make sense to confront them? And if we the human condition. And I believe we’re forget the lessons of September the 11th as making progress on both fronts. a nation, we will be naive or blind to the Yes, sir. realities of the world. And the best way to confront these folks in the long term is to NATO Allies’ Role in Afghanistan defeat their ideology with one based upon Q. One more, I’m sorry. On the NATO hope, and that’s one based upon liberty. And allies, do you believe that they’re avoiding that’s what you’re watching unfold. It’s nec- the fight, or at least some of them are? essary work, and it’s hard work, and it re- The President. Well, I would like to quires determination and effort and commit- praise the Brits, the Canadians, the Dutch, ment. And so part of our efforts is to con- the Danes, and other countries for their con- vince others, one, the nature of the world tribution—the Aussies—for their contribu- in which we live; two, that we’re in an ideo- tion of shooters, fighters, people that are will- logical struggle; and three, we will prevail be- ing to be on the frontline of this battle. These cause we’ve got the ultimate weapon against are brave souls. They’re working side by side those who can’t see anything but terror and with the Afghan forces and U.S. forces to murder as a way forward. And that is free- deal the Taliban a blow. And I’ve only got dom. praise for them. Yes, Holly [Holly Rosenkrantz, Bloomberg I understand that some countries are in News]. a position where they can’t commit combat troops. And so the question is, are we able to leverage their position in Iraq in such a National Economy/Home Loan Industry way that enables us to stay on the offense Q. Mr. President, prominent Republican against the Taliban, help the Afghans to do economists, including Alan Greenspan and so? Marty Feldstein, are saying the Government And my biggest concern is that people say, should do more to head off a recession. ‘‘Well, we’re kind of tired of Afghanistan; Greenspan is suggesting you need Govern- therefore, we think we’re going to leave.’’ ment money to prevent home foreclosures, That would be my biggest concern. And so and Feldstein is suggesting more tax cuts. our objective is to help people meet a mission Should the Government do more, and if so, that they’re comfortable with achieving, and what? convince them that this is going to take The President. Well, we’re constantly awhile. It’s going to take time for this demo- analyzing options available to us. My view of cratic experiment there in Afghanistan to the economy is that the fundamentals are work. And I believe it will. strong, that we’ve had strong growth for a As you all know, I’ve said this many times reason—that we’re competitive; we got flexi- from the podium: I do believe in the uni- ble workplace; that we kept taxes low; exports versality of freedom. I believe if people are are up.

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Like many Americans, I’m concerned, and your conversation with Vice President Gore I’m concerned about the fact that Americans about climate change a few weeks ago? see their costs going up. I know Americans The President. Remind me about that are concerned about whether or not their here. Let me finish the first part of the ques- neighbor may stay in their house. And so tion, and remind me you asked that. we’re dealing with these issues. The question is how to have an effective On the housing front, I made it clear we’re strategy. Is it more effective to let each State not going to bail out lenders, and we’re not make a decision as to how to proceed in curb- going to help speculators. But we will help ing greenhouse gases, or is it more effective creditworthy people stay in their homes. And to have a national strategy? Director Johnson that’s what Secretary Paulson has done, along made a decision based upon the fact that we with Secretary Jackson, in putting together passed a piece of legislation that enables us what’s called the HOPE NOW coalition, to have a national strategy, which is the— which has got lenders and financiers and con- increasing CAFE standards to 35 miles an sumer advocates all working together to de- hour by 2020 and a substantial increase of velop standards to make it more likely a cred- alternative fuels—36 billion gallons by 2022. itworthy person can refinance their home. And so the Director, in assessing this law, See, the difficulty we face in the housing and assessing what would be more effective market is that the lender, the person who for the country, says, we now have a national actually made the note, oftentimes doesn’t plan. It’s one of the benefits of Congress end up owning the note. That note could passing this piece of legislation. be—in the recent past has been bundled and I told Vice President Gore that I take the sold as an asset. And so there’s no telling issue seriously. And we’re developing a strat- who owns the mortgage of the person who egy that will deal with it—and an effective wants to renegotiate. And so we’re helping strategy. Yesterday’s bill is a part of that strat- deal with the new realities in a way that we egy. When you replace as much gasoline on believe is going to be effective. a mandatory basis as we’re suggesting, it’s Secondly, the Congress can really help by going to do a lot to improve the greenhouse passing a FHA modernization bill. The gases. And by the way, the bill I signed was House passed a bill. The Senate passed a bill. a little weaker than the one I suggested, but They need to get together when they get nevertheless was happy to sign it. back, quickly, and get it to my desk so that And one of the key components, by the it makes it easier for the Federal Govern- way, to be successful on reformulated fuel ment, in this case, to help people refinance standards is to spend research and develop- their homes. ment money on cellulosic ethanol, new ways In terms of further stimulation, we’ll con- to manufacture ethanol. We can’t rely only sider all options. So we’re watching carefully. on corn in order to meet these standards. Let’s see here. Baker [Peter Baker, Wash- And I understand a lot of people in the farm ington Post]. belt are getting concerned—unless, of course, you’re a corn grower. But if you’re Environment/Fuel Efficiency Standards/ feeding cattle or feeding hogs, the cost of Alternative Fuel Sources business has gone up. And that’s one of the Q. Thank you, Mr. President. Yesterday tradeoffs you have to make. So what I want you joined together with House Speaker to assure people out there is that we’re Pelosi and Senator Reid to sign the energy spending a lot of taxpayers’ money in a way legislation and talk about the importance of to figure out how to use wood chips or the bill in curbing greenhouse gases, among switchgrass in order to make ethanol. But this other goals. However, your administration is a real national plan. then told California that it couldn’t imple- Secondly, in order to be effective on a ment its own plan to restrict tailpipe emis- global basis, countries that emit greenhouse sions. How important is fighting greenhouse gases need to be at the table. One of the gases to you? Why can’t the States try to do main reasons I was against Kyoto was that more? And can you tell me anything about China wasn’t at the table. I mean, we could

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do all we wanted to do, but it wouldn’t affect sudden, you begin to see a strategy unfold. greenhouse gases over the long run unless And by the way, the final thing is, is that a country like China had agreed to partici- we do have 250 years of coal. And I believe pate in a strategy. we can develop technologies that will enable And so we went to the Bali Conference us to use that coal in an environmentally with that in mind and worked out a com- friendly way. promise that said, we’re committed to a proc- So what I’m suggesting to you is, is that ess that’s going to unfold over the next 2 we do have a strategy. Our strategy is to bring years. But we’ve also got a parallel process others to the table. Our strategy is to develop working to make sure major emitters sit at our own plan to meet the national goals— the table and come together, hopefully, on the international goals that I hope we’ll be a goal that we all agree to. And it’s a strategy able to set later on this summer. And you’ve that I laid out at the G–8 in Germany; it’s just heard some of the components of it. a strategy that was explained to everybody Yes, sir. there in Bali; and it’s a strategy we think will be effective. America’s Image Abroad And so, absolutely, I take the issue seri- Q. Mr. President, thank you. If I could ously. But I want to make sure that we’re return a minute to the CIA tapes. I realize effective in what we do, and secondly, do not you don’t want to discuss it at this point, but wreck our economy in whatever we do. See, given your remarks about the struggle against it is hard to develop the technologies nec- ideology, how concerned are you that your essary to be able to make sure our standard administration once again faces criticism, of living remains strong and deal with green- questions from people around the world house gases if you’re broke. If you don’t have about the handling of a terrorist suspect? any money, it is really hard to develop new The President. You know, you’re trying technologies. And so we need to be pros- to get me to prejudge the outcome of this perous for a lot of reasons, primarily so our inquiry. And let’s wait and see what happens. citizens can have a good life, but also so that Let’s wait and see what the facts are. And— we’re wealthy enough to make the invest- look, we get criticized a lot for a variety of ments necessary to deal with greenhouse reasons. We’re asking people to do hard gases. things, for starters, which is intercept and Finally, if you’re truly serious about deal- find terrorists and to spread freedom. And ing with greenhouse gases, then it seems like there’s isolationist tendencies in this world. to me you ought to be a strong supporter People would rather stay at home. People of nuclear power. Nuclear power enables us would rather not aggressively pursue people to generate electricity without emitting one overseas and aggressively pursue freedom. I unit of greenhouse gases. I am—to me, I am understand that. We got people like that in amazed that our country isn’t more robust our own country. That’s why, in my State of in supporting the advent of nuclear power. the Union Address a couple of years ago, I I certainly am, and applaud those efforts by talked about the perils of isolationism and Members of the Congress to provide incen- protectionism. And the fundamental ques- tives for the construction of new plants. tion facing whoever sits in the Oval Office But if you’re somebody that says, ‘‘Green- is, will you use the influence of the United house gases are of vital national interest,’’ States to advance a freedom agenda to help then you ought to be saying, ‘‘I’m for the others realize the blessings of liberty and development of nuclear powerplants.’’ It is yield peace? by far the best solution to making sure we So I don’t want people to get the wrong have economic growth and, at the same time, impression of our country, but I’m not sur- be good stewards of the environment. prised we get criticized on a variety of fronts. So when you couple increasing CAFE And—on the other hand, most people like standards with using alternative fuels—which to come to our country, and most people love deals with the automobile area—as well as what America stands for. And so it’s like I a good strategy on electricity, then all of a say about the Presidency: People in America

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like the Presidency, and sometime they like Q. I am, actually. the President. Get it? [Laughter] The President. Good. [Laughter] So Yes, ma’am. therefore, you use that as an opportunity to ask a followup. [Laughter] Syria/Lebanese Presidential Elections/ Q. Absolutely. President’s Trip to the Middle East The President. Didn’t work. [Laughter] Q. Mr. President, on the Middle East, will Mike [Mike Allen, Politico]. your trip to the Middle East—I know you’re not going to Lebanon—will it help to sta- U.S. Foreign Policy/Freedom Agenda bilize Lebanon? As you know, President Q. Mr. President, you maybe saw that Sarkozy said that he spoke to President Asad, President Clinton said recently that one of and he said his patience is running out. the first actions of a new Clinton administra- The President. Yes. tion would be to send Presidents 41 and 42 Q. Was this coordinated with you? And on a worldwide good will mission to restore are you willing to speak to President Asad the country’s good name abroad. to end the crisis in Lebanon? The President. Yes—— The President. No, it wasn’t coordinated Q. I wonder if you think such a thing is with me, and my patience ran out on Presi- necessary—— dent Asad a long time ago. And the reason The President. Well, 41 didn’t think it’s why is, is because he houses Hamas; he facili- necessary. It sounds like it’s going to be a tates Hizballah—suiciders go from his coun- one-man trip. [Laughter] try into Iraq; and he destabilizes Lebanon. Yes, Michael, do you want to try—— And so if he’s listening, he doesn’t need a Q. Mr. President, I wonder if you would phone call. He knows exactly what my posi- consider doing such a thing during your Pres- tion is. idency, and do you think that—— We are—our view on Lebanon—first of The President. That’s what I do during all, it’s very important that Lebanon—Leb- my Presidency. I go around spreading good anon’s democracy succeed. Secondly, as you will and talking about the importance of know, we did work with the French on 1559 spreading freedom and peace. Go ahead. I to get Syria out of Lebanon, and Syria needs don’t know what I’m going to do after I’m to stay out of Lebanon. Syria needs to let President. Michael, I’ve got an exciting 13 the process in Lebanon work. And if they months ahead—and I know you’re just wait- can’t come to an agreement—I appreciate ing for me to say ‘‘sprint to the finish line,’’ the sides trying to work on a common ground so I won’t. [Laughter] But it’s—go ahead, for a President, but if they can’t come for Michael, try one more time. agreement, then the world ought to say this: Q. Okay. Mr. President, you maybe saw that the March 14th Coalition can run their that your former colleague from the National candidate and their Parliament—majority Governors Association, Mike Huckabee—— plus one ought to determine who the Presi- The President. You’re trying to get me dent is. And when that happens, the world in the race, Mike. ought to embrace the President. Q. No, sir. I’m looking forward to going to the Middle The President. You’re trying to drag me East. I’ve got a couple of objectives. One is in the race. I know—what’s your advice? to advance the Palestinian-Israeli peace proc- Should I do it? ess. Secondly is to continue to work with our Q. Do it. Arab friends on reconciliation with Israel. The President. Do it? And finally, is to assure people in the Middle Q. Go for it. [Laughter] East that we understand—or we’ll show a The President. I plan on having some strong commitment to the security of the re- press conferences next year, and I suspect gion and a commitment to the security of next year the questions will be even more our friends. plentiful about getting me to be the opiner And it’s going to be a great trip. I hope in chief. you’re going with me. Yes, go ahead, Mike.

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2008 Presidential Election The President. ——yelled his name out— Q. Mr. President, this is a question about Wolf. your foreign policy. You maybe saw that your Q. Thank you, Mr. President. On keeping foreign policy was described as arrogant, go- taxes low, part of the way you seem to be it-alone. I wonder why you disagree with doing it is by not paying for some of the that, and if there’s any danger in having—— things that passed in the last couple days— The President. That’s a clever way of get- emergency spending on Iraq, the AMT fix. ting me in the race. Look, during the pri- Can you tell us why it’s not irresponsible to maries and during the general election, I sus- pass these costs along to our kids? And I’m pect my name may come up a lot, and what also tempted to ask, at the top of this, you the American people need to do is to sort talked about the wasteful spending and an through the rhetoric and reality. initiative that you were going to—with Direc- And so this is a subtle attempt to get me tor Nussle. Can you give us a little bit of to start commenting about the primaries, and a hint on how you’re going to go after—— I’m not going to do so. I will wait, reserve The President. No, I think we better— judgment, be patient, and after the primaries that will be an interesting nugget for next are over, will help my party unify, because year. And secondly, we have been reducing I believe we will keep the White House. I the deficit. Progrowth economic policies believe ours is the party that understands the work. By cutting taxes, the economy grows, nature of the world in which we live and that which yields more revenues for the Treasury. the Government’s primary responsibility is to And then the fundamental question is, can protect the American citizens from harm. we bring fiscal discipline on the spending And I will continue to remind the American side? The argument that you’ve got to raise people that our professionals need to have taxes to make sure your children don’t pay the tools necessary to make sure that we find debt only works if the Government doesn’t out who’s thinking about attacking us, and follow suit and spend that money you raised if they are, do something about it. That’s on new programs. what we’re going to do. My view is, is that given more money, the We’re also the party that understands that Government will find new ways to spend it. you can spend your money, Michael—all that And secondly, by raising taxes, we’ll slow money they pay you, you can spend it better down the economic growth of this country, than the Government can spend it. And which will increase deficits over time. therefore, we’re going to keep taxes low. And And so we’re on a plan to reduce the def- we’ve got an economic—a plan that will keep icit, and at the same time, fund our troops, this economy strong. and at the same time, keep taxes low. And I’m looking forward to doing my bit. Progrowth economic policies has worked. In the meantime, I’m out raising money for And maybe somebody else thinks you can the Republican Party, trying to make sure raise taxes and keep the economy growing; that once the primaries are over—that you’re I don’t. I think a sure way to hurt the econ- trying to drag me into—that we’re united and omy is to run up taxes on people. ready to go. And I’m confident we’ll hold the This other thing that’s interesting—and White House, and I’m confident we can pick you hear these people in the campaigns— up seats in both the Senate and the Congress. even though I’m not going to opine about Yes, sir. the primary—but they do talk about taxing the rich. I just want people to remember that many small businesses pay tax at the indi- National Economy vidual income tax level because they’re orga- Q. So far, Republicans haven’t mentioned nized not as c-corps, but as limited liability your name. partnerships and s-corps, which means that Q. Yes, just a quick—— they pay individual tax rates. And when you The President. No, not you. This guy say you’re going to tax the rich, you’re taxing right here. USA Today. Wolf [Richard Wolf]. a lot of people that are hard-working people, Q. On keeping taxes—— and you’re taxing small businesses. Small

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businesses create most of the growth in our they pass that free trade agreement with economy, most of the job growth. And a sure Korea. It’s in our interests we do so. way to stop that from happening is to take But, no, I understand that people are— money out of their treasury. when they write down their assets, they may So I’m a strong believer that tax cuts work, need to get a little extra capital on their bal- and we need to keep taxes low. ance sheets. And it doesn’t trouble me at all; Yes, sir. Dow Jones man [Henry ‘‘Jay’’ it doesn’t. What troubles me is the fact that Pulizzi, Dow Jones Newsletter]. How’s the they—is that some of this paper isn’t worth market? what people thought it was, and it’s going Q. I don’t know. I’ll check. to have to work through the system. The President. Okay. Good. Thanks. Listen, thank you all. Have a wonderful holiday season. Appreciate it. U.S. Financial Markets/Foreign Investors NOTE: The President’s news conference began at Q. The mortgage crisis is leading some of 10:01 a.m. in the James S. Brady Press Briefing the Nation’s biggest financial institutions to Room at the White House. In his remarks, he seek investments from funds that are con- referred to Gen. Dan K. McNeill, USA, Com- trolled by foreign governments. Is that some- mander, International Security Assistance Force, thing that concerns you? NATO, Afghanistan; President Hamid Karzai of The President. No, I like to get our Afghanistan; President Bashar al-Asad of Syria; money back. I think the world that is open and President-elect Lee Myung-bak of South Korea. A reporter referred to President Nicolas for investment and trade is a world that will Sarkozy of France. The Office of the Press Sec- lead to overall prosperity. It’s interesting that retary also released a Spanish language transcript they’re going to have to do that. My attitude of this news conference. is, is that Wall Street needs to put all their— put it all out there for everybody to see. They need to have the—off-balance sheet this and Remarks at a Swearing-In Ceremony put out there for investors to take a look at. for James B. Peake as Secretary of And if there’s some write-downs to be done, Veterans Affairs they need to do it now. December 20, 2007 And so I’m fine with capital coming in from overseas to help bolster financial insti- The President. Good morning. Thanks for tutions; I don’t think it’s a problem. I think the warm welcome to the Department of what will be a problem is to say, we’re not Veterans Affairs. I am proud to introduce going to accept foreign capital, or we’re not your new Secretary, Lieutenant General going to open markets, or we become protec- James Peake. And I am pleased to be joined tionists. Protectionism would be a huge mis- by his wife, Janice, and daughter Kimberly, take for this country. And what’s going to and her husband, Mack. I know they’re be an interesting test next year on whether proud of what Jim has accomplished during or not we’re going to be a country that trades his career, and I thank them for supporting with others and opens up markets is these him in his work ahead. free trade votes. I applaud the Congress for I thank the Vice President for joining me passing the Peruvian free trade deal. But we today. We had a long ride over here, Jim. got some votes coming up with Colombia. [Laughter] Plenty of time to visit. [Laughter] That’s going to be an interesting test to deter- I want to thank the Secretary for joining us— mine whether or not we remain—that we re- Secretary of Defense Bob Gates; honored main an open economy and that we expect you’re here, sir. Appreciate , others to treat us the way we treat them. Secretary of Labor; Deputy Secretary Gor- And I spoke this morning to the President- don Mansfield—I’m going to say something elect of South Korea. And the people there about you here in a minute. I appreciate Ad- are going to be watching very carefully as miral Thad Allen, Commandant of the U.S. to whether or not our Congress understands Coast Guard, for joining us. Thanks for com- the importance of the relationship and that ing, Admiral; General Dick Cody, Vice Chief

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of Staff of the . I appre- of service. His mother was an Army nurse. ciate all those who wear the uniform who His father was an Army officer, who spent have joined us today as well. most of his 30-year career in the Medical I want to thank Arlen Specter, United Service Corps. And I know they both would States Senator, for joining us. Senator, thanks be proud to see their oldest son, Jim, become for coming. And my Congressman, the Con- the Secretary of Veterans Affairs. gressman from central Texas, Congressman Dr. Peake follows in the footsteps of an- Chet Edwards, chairman of the Military Con- other fine public servant and Vietnam com- struction and Veterans Affairs Appropriations bat veteran, Secretary Jim Nicholson. Subcommittee; proud you’re here. Throughout his career, Jim Nicholson has I want to thank the members of veterans served our Nation with honor and integrity— service organizations who are with us today. as an Army Ranger, an ambassador, and as Audience member. Hoorah! [Laughter] Secretary of Veterans Affairs. Secretary The President. Looking forward to work- Nicholson built on the fine record of his ing with you. [Laughter] And behave your- predecessor, Tony Principi—Mr. Secretary, self. [Laughter] glad you’re here today—and he leaves an im- The Secretary of Veterans Affairs has one pressive legacy of his own. Under his leader- of the most important jobs in our Govern- ship, this Department has worked to meet ment. The Secretary leads a Department of the needs of new veterans returning home more than 240,000 employees, and I want from Afghanistan and Iraq. Secretary Nichol- to thank every one of them for serving our son also launched an effort to modernize the country; appreciate your hard work. The Sec- Department’s information technology sys- retary is charged with a solemn responsi- tems, so we can better protect patients’ per- bility, to ensure our Nation’s veterans receive sonal information. I want to thank Jim for the care and the benefits they deserve. his work on behalf of our Nation’s veterans, Dr. Jim Peake has the skills and experience and I wish him and his wife Suzanne all the to carry out this mission. He is both the first very best. physician and the first general to lead this I also want to thank Deputy Secretary Gor- Department. His 36-year medical career has don Mansfield. He served as the Acting Sec- taken him to military bases across the world. retary for Veterans Affairs since October. And during the opening years of the war on Gordon is a retired Army officer who has terror, he directed the Army Medical De- dedicated much of his career to serving his partment as Army Surgeon General. In that fellow veterans. I’ve benefited from Gordon’s position, he led more than 55,000 medical wisdom and counsel, and he did a terrific personnel and managed an operating budget job as Acting Secretary during this time of of nearly $5 billion. Throughout his long ca- transition. reer, Dr. Peake has worked to improve the Dr. Peake takes office at a critical moment way we deliver medical care to our troops. in the history of this Department. Our Na- And thanks to his efforts, many who once tion is at war, and many new veterans are might have died on the battlefield have re- leaving the battlefield and entering the VA turned home to live lives of hope and prom- system. This system provides our veterans ise. with the finest care, but sometimes the bu- We see this hope and promise in the story reaucracy can be difficult. To address these of Dr. Peake’s own life. Dr. Peake’s first stay problems, our administration, along with the at a military hospital came years before he Secretary’s leadership, is implementing rec- entered his—earned his medical degree at ommendations of the Dole-Shalala Commis- Cornell. It came as a wounded patient during sion on Wounded Warriors. In other words, the . This West Point graduate we’re not going to tolerate bureaucratic received several medals for his valor, includ- delays. We want the very best for our vet- ing the ; he earned a reputation erans. Some of the Commission’s rec- for honor and selflessness. ommendations require the approval of Con- Dr. Peake learned those values from his gress—and Congressman and Senator, we’re loving parents who taught him the meaning looking forward to working with you on

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those. I’ve sent legislation to Congress to Senator George Voinovich of Ohio for spon- carry out these additional recommendations, soring this legislation. and Dr. Peake is going to work with Mem- I remember calling you on the phone, tell- bers from both sides of the aisle to get me ing you that I’m going to propose the same a good bill that I can sign into law. thing you are—talked to George as well— Our Nation has no higher calling than to and it’s been a joy to work with you. provide for those who have borne the cost I want to thank Jim McCrery of the House, of battle, and we will honor our responsibil- Stephanie Tubbs Jones, and Rob Andrews. ities. I am confident in the future of this De- Appreciate you all being here. partment because I have seen firsthand the I want to thank the staff who works hard dedication and character of the men and at the Treasury and HUD to make this deal women who work here. And I am confident work. Appreciate your hard work. that you will have a worthy and strong leader In recent months, our Nation’s housing in our new Secretary. market has faced serious strains. Home val- Congratulations, Jim. I appreciate your ues have fallen in many parts of our country. willingness to serve. And now I ask the Vice At the same time, many homeowners with President to administer the oath. adjustable rate mortgages have seen their monthly payments increase faster than their ability to pay. And now some homeowners NOTE: The President spoke at 11:24 a.m. at the Department of Veterans Affairs. In his remarks, face the prospect of foreclosure. he referred to former Senator Bob Dole and My administration has taken strong steps former Secretary of Health and Human Services to help homeowners avoid foreclosure by Donna E. Shalala, Cochairs, President’s Commis- making it easier to refinance loans. We gave sion on Care for America’s Returning Wounded the Federal Housing Administration greater Warriors. The transcript released by the Office flexibility to refinance loans for struggling of the Press Secretary also included the remarks homeowners. We helped assemble a private- of Secretary Peake. sector group of lenders, loan servicers, inves- tors, and mortgage counselors called the Remarks on Signing the Mortgage HOPE NOW Alliance. This group has agreed on a set of industry-wide standards Forgiveness Debt Relief Act of 2007 to help those with subprime loans refinance December 20, 2007 or modify their mortgages, so more families can stay in their homes. Thank you all for coming. Welcome to the The bill I sign today will help this effort White House. I’m pleased to sign a bill that by ensuring that refinancing a mortgage does will help homeowners who are struggling not result in a higher tax bill. Under current with rising mortgage payments. The Mort- law, if the value of your house declines and gage Forgiveness Debt Relief Act of 2007 your bank or lender forgives a portion of your will protect families from higher taxes when mortgage, the Tax Code treats the amount they refinance their homes. It will help hard- forgiven as money that can be taxed. And working Americans take steps to avoid fore- of course, this makes a difficult situation even closure during a period of uncertainty in the worse. When you’re worried about making housing market. I want to thank Members your payments, higher taxes are the last thing of Congress for getting this bill passed. I ap- you need to worry about. So this bill will cre- preciate it very much. It’s been a joy working ate a 3-year window for homeowners to refi- with you. nance their mortgage and pay no taxes on I thank my Secretary of the Treasury, any debt forgiveness that they receive. And Hank Paulson, and Secretary of Housing and it’s a really good piece of legislation. The pro- Urban Development Alphonso Jackson for vision will increase the incentive for bor- taking the lead in helping people stay in their rowers and lenders to work together to refi- homes. I particularly want to thank the chair- nance loans, and it will allow American fami- man of the Finance Committee, Max Baucus, lies to secure lower mortgage payments with- Senator Debbie Stabenow of Michigan, and out facing higher taxes.

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With this bill, Congress has taken a strong This past month is the lowest number of step to address the turbulence in the housing patients being admitted here since ’02, and market. Yet there’s more work to be done. that’s good news. It’s good news for families The Congress needs to pass legislation per- who worry about their loved ones in harm’s mitting State and local governments to issue way, and it’s good news for the staff here tax-exempt bonds for refinancing existing who would like nothing more to be—to have home loans. And Congress needs to pass leg- nobody come in here. Every time I come islation strengthening the independent regu- to a facility like this, I count my blessings. lator of Government-sponsored enterprises And one of the great blessings is to be the like Freddie Mac and Fannie Mae, so we President of a country that produces such can keep them focused on the mission to ex- brave men and women. pand homeownership. Congress needs, as And so as we head into the holiday seasons, well, to complete work on responsible legisla- I ask for the good Lord’s blessings on those tion modernizing the Federal Housing Ad- in harm’s way and their families. And I want ministration, so that we can give the FHA to thank you again, General, for your hospi- the necessary flexibility to help hundreds of tality. I appreciate you having me. Thank thousands of additional families qualify for you. Thank you all. prime-rate financing. By taking these steps, we can help our NOTE: The President spoke at 4:14 p.m. In his homeowners—and we’ll help more Ameri- remarks, he referred to Maj. Gen. Carla G. Hawley-Bowland, USA, commanding general, cans become homeowners. We want people North Atlantic Regional Medical Command and to have a place they can call their own. After Walter Reed Army Medical Center. all, it’s an essential part of the American Dream. And we want that dream to extend throughout our Nation. Proclamation 8213—To Implement I want to thank the Members for joining an Amendment to the Dominican us. I wish you all happy holidays. And this Republic-Central America-United is going to make a happy holiday for many States Free Trade Agreement homeowners. Thanks for coming. December 20, 2007

NOTE: The President spoke at 1:05 p.m. in the By the President of the United States Roosevelt Room at the White House. H.R. 3648, of America approved December 20, was assigned Public Law No. 110–142. A Proclamation 1. On August 5, 2004, the United States entered into the Dominican Republic-Cen- Remarks Following a Visit With tral America-United States Free Trade Wounded Troops at Walter Reed Agreement (the ‘‘Agreement’’) with Costa Army Medical Center Rica, the Dominican Republic, El Salvador, December 20, 2007 Guatemala, Honduras, and Nicaragua (the ‘‘Agreement countries’’). The Congress ap- Thank you all for joining me. I’ve just proved the Agreement in section 101(a) of come down from a tour of a couple of the the Dominican Republic-Central America- wards up there here at Walter Reed. First, United States Free Trade Agreement Imple- I’m inspired by the quality of health care. mentation Act (the ‘‘CAFTA–DR Act’’) (19 Americans may wonder whether or not our U.S.C. 4011). troops are getting the best possible health 2. The Parties to the Agreement entered care, and they are. They’re not only getting into an amendment to the Agreement on July great care from good docs and nurses; they’re 27, August 6, and August 14, 2007 (the getting a lot of compassion and a lot of love ‘‘Amendment’’). The terms of the Amend- up in the wards. And so I want to thank you ment are contained in letters of under- all. General, thank you very much for taking standing between the United States and the the lead. Agreement countries described in sections

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1634(a)(2) and 1634(b)(2) of the Pension preferential tariff treatment under the Protection Act of 2006 (Public Law 109–280, Agreement, to provide preferential tariff 120 Stat. 780). treatment for certain other goods under the 3. Section 1634 of the Pension Protection Agreement, and to make technical and con- Act authorizes the President to proclaim forming changes in the general notes to the modifications to the Harmonized Tariff HTS, the HTS is modified as set forth in: Schedule of the United States (HTS) as nec- (a) Sections A, B, and C of the Annex essary to carry out the understandings de- to this proclamation; and scribed therein subject, in the case of certain (b) Section D of that Annex. provisions of the Amendment, to the con- (2) The modifications to the HTS made sultation and layover requirements in section by paragraph (1)(a) of this proclamation shall 104 of the CAFTA–DR Act (19 U.S.C. 4014). enter into effect on the date, as announced 4. Section 203(o) of the CAFTA–DR Act by the United States Trade Representative (19 U.S.C. 4033) authorizes the President to in the Federal Register, that the Amendment proclaim, as part of the HTS, the provisions enters into force and shall be effective with set out in Annex 4.1 of the Agreement. respect to goods entered, or withdrawn from 5. Executive Order 11651 of March 3, warehouse for consumption, on or after that 1972, as amended, established the Com- date. mittee for the Implementation of Textile (3) The modifications to the HTS made Agreements (CITA), consisting of represent- by paragraph (1)(b) of this proclamation shall atives of the Departments of State, the Treas- enter into effect on the date, as announced ury, Commerce, and Labor, and the Office by the United States Trade Representative of the United States Trade Representative, in the Federal Register, that the Amendment with the representative of the Department has entered into force and the conditions set of Commerce as Chairman, to supervise the forth in paragraph (a), paragraph (b), or both, implementation of textile trade agreements. of footnote 1 to Appendix 4.1–B of the Consistent with 3 U.S.C. 301, when carrying Agreement have been fulfilled, and shall be out functions vested in the President by stat- effective with respect to goods entered, or ute and assigned by the President to CITA, withdrawn from warehouse for consumption, the officials collectively exercising those on or after that date. functions are all to be officers required to (4) The CITA is authorized to exercise my be appointed by the President with the ad- authority under section 203(o) of the vice and consent of the Senate. CAFTA–DR Act to implement Appendix 6. Section 604 of the Trade Act of 1974, 4.1–B of the Agreement by determining as amended (the ‘‘1974 Act’’) (19 U.S.C. whether and, if so, by what amount, to in- 2483), authorizes the President to embody crease in accordance with paragraph 3 or in the HTS the substance of relevant provi- footnote 2 of that Appendix the quantitative sions of that Act, or other acts affecting im- limits in the provisions of the HTS set out port treatment, and of actions taken there- in section D of the Annex to this proclama- under. tion. Now, Therefore, I, George W. Bush, (5) The United States Trade Representa- President of the United States of America, tive shall modify U.S. note 21 to subchapter acting under the authority vested in me by XXII of chapter 98 of the HTS in a notice the Constitution and the laws of the United published in the Federal Register to reflect States of America, including but not limited determinations pursuant to paragraph (4) of to section 203 of the CAFTA–DR Act, sec- this proclamation by the CITA. tion 1634 of the Pension Protection Act, sec- (6) Any provisions of previous proclama- tion 301 of title 3, United States Code, and tions and Executive Orders that are incon- section 604 of the 1974 Act, do proclaim that: sistent with the actions taken in this procla- (1) In order to provide generally for the mation are superseded to the extent of such modifications in the rules for determining inconsistency. whether goods imported into the customs In Witness Whereof, I have hereunto set territory of the United States are eligible for my hand this twentieth day of December, in

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the year of our Lord two thousand seven, over them and their families, and pray for and of the Independence of the United their safe return. States of America the two hundred and thir- Christmas is a time to rejoice and remem- ty-second. ber the birth of Jesus Christ. Laura and I pray your Christmas will be blessed with fam- George W. Bush ily and fellowship, and we wish you a day of glad tidings. Merry Christmas. [Filed with the Office of the Federal Register, 9:06 a.m., December 26, 2007] George W. Bush

NOTE: This proclamation and its attached annex NOTE: An original was not available for were released by the Office of the Press Secretary verification of the content of this message. on December 21, and they will be published in the Federal Register on December 27. The Office of the Press Secretary also released a Spanish lan- Message Sending Holiday Greetings guage version of this proclamation. to Members of the Armed Forces December 21, 2007 Message on the Observance of To the Men and Women of the United States Christmas 2007 Armed Forces December 21, 2007 On behalf of a grateful Nation, Laura and I send our best wishes for the holidays. ‘‘But the angel said to her, ‘Do not be In this season of giving, we remember our afraid, Mary, you have found favor with duty to others, and we see that sense of duty God. You will be with child and give birth fulfilled in the men and women who wear to a son, and you are to give him the name our Nation’s uniform. Our country owes you Jesus. He will be great and will be called the a debt of gratitude for your courage and re- Son of the Most High . . . his kingdom will solve to serve the cause of peace. Americans never end.’ ’’ are proud of your dedicated service, and I am proud to be the Commander in Chief Luke 1:30–33 of the greatest force for freedom in the his- During the Christmas season, our thoughts tory of the world. turn to the source of joy and hope born in Our Nation is thankful for the many sac- a humble manger on a holy night more than rifices you and your families make every day. 2,000 years ago. Each year, Christians every- During the holidays and throughout the com- where celebrate this single life that changed ing year, we ask the Almighty to bestow His the world and continues to change hearts protection and care on you and your loved today. The simple and inspiring story of the ones. We pray for your safety and for liberty, birth of Jesus fills our souls with gratitude justice, and peace on Earth. for the many blessings in our lives and prom- Laura and I wish you a joyful holiday sea- ises that God’s purpose is justice and His plan son. May God bless you, and may God con- is peace. tinue to bless America. At this special time of year, we give thanks George W. Bush for Christ’s message of love and mercy, and we are reminded of our responsibility to NOTE: An original was not available for serve. America is blessed to have fine citizens verification of the content of this message. who reach out with a compassionate hand to help brothers and sisters in need. We also remember our brave men and women in uni- Message on the Observance of form who have volunteered to defend us in Kwanzaa 2007 distant lands. Many of those who have an- December 21, 2007 swered the call of duty will spend Christmas far from home and separated from family. I send greetings to those observing We honor their sacrifice, ask God to watch Kwanzaa.

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Established in 1966, Kwanzaa is cele- for H.R. 3315, designating the Great Hall of brated each year as an opportunity for Afri- the Capitol Visitor Center as Emancipation can Americans to honor African traditions of Hall. family, community, and culture. During the The White House announced that the seven days leading up to the New Year, mil- President will travel to Israel, the West Bank, lions of individuals reflect on the past and Kuwait, Bahrain, the United Arab Emirates, renew their commitment to the principles of Saudi Arabia, and Egypt from January 8–16, Kwanzaa—unity, self determination, collec- 2008. tive work and responsibility, cooperative eco- The President declared a major disaster in nomics, purpose, creativity, and faith. Oklahoma and ordered Federal aid to sup- As family and friends gather to celebrate plement State and local recovery efforts in Kwanzaa, our citizens are reminded of the the area struck by severe winter storms on many African Americans who have contrib- December 8 and continuing. uted their talent and strength to this great The President announced his intention to Nation. I commend those observing this holi- nominate Irene B. Brooks to be Chairman day for taking pride in your rich heritage. and Samuel W. Speck to be a Commissioner May the coming year be filled with the bless- of the International Joint Commission of the ings of health and happiness. United States and Canada. Laura and I send our best wishes for a The President announced his intention to joyous Kwanzaa celebration. nominate Robert G. McSwain to be Director George W. Bush of the Indian Health Service within the Pub- lic Health Service at the Department of NOTE: An original was not available for Health and Human Services. verification of the content of this message. The President announced his intention to nominate Deanna Tanner Okun to be Dep- uty U.S. Trade Representative with the rank of Ambassador. Digest of Other White House Announcements December 19 In the morning, the President had an intel- The following list includes the President’s public ligence briefing. Later, in front of the Dwight schedule and other items of general interest an- D. Eisenhower Executive Office Building, he nounced by the Office of the Press Secretary and and Vice President thanked not included elsewhere in this issue. Washington, DC, firefighters who responded to a fire in the Vice President’s ceremonial office. December 15 In the afternoon, the President traveled to In the morning, the President had an intel- the National Naval Medical Center in Be- ligence briefing. thesda, MD, where he visited with wounded December 17 U.S. military personnel and presented medals to service members. He then In the morning, the President had an intel- returned to Washington, DC. ligence briefing. Later, he traveled to Fred- ericksburg, VA. In the afternoon, the President returned December 20 to Washington, DC. In the morning, the President had an intel- ligence briefing. December 18 In the afternoon, the President visited In the morning, the President had an intel- Walter Reed Army Medical Center where he ligence briefing. met with wounded U.S. military personnel In the afternoon, in the Oval Office, the and presented Purple Heart medals to sol- President participated in a signing ceremony diers.

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December 21 C. David Welch, In the morning, the President had an intel- of Virginia, a career member of the Senior ligence briefing. Later, he and Mrs. Bush Foreign Service, class of Career Minister, for traveled to Camp David, MD. the personal rank of Career Ambassador in recognition of especially distinguished serv- ice over a sustained period.

Jamsheed K. Choksy, Nominations of Indiana, to be a member of the National Submitted to the Senate Council on the Humanities for a term expir- ing January 26, 2014, vice Lawrence The following list does not include promotions of Okamura, term expiring. members of the Uniformed Services, nominations to the Service Academies, or nominations of For- Dawn Ho Delbanco, eign Service officers. of New York, to be a member of the National Council on the Humanities for a term expir- Submitted December 19 ing January 26, 2014, vice Dario Fernandez- Morera, term expiring. Richard A. Boucher, of Maryland, a career member of the Senior Gary D. Glenn, Foreign Service, class of Career Minister, for of Illinois, to be a member of the National the personal rank of Career Ambassador in Council on the Humanities for a term expir- recognition of especially distinguished serv- ing January 26, 2014, vice Stephan ice over a sustained period. Thernstrom, term expiring.

William J. Burns, David Hertz, of the District of Columbia, a career member of Indiana, to be a member of the National of the Senior Foreign Service, class of Career Council on the Humanities for a term expir- Minister, for the personal rank of Career ing January 26, 2014, vice Jewel Spears Ambassador in recognition of especially dis- Brooker, term expiring. tinguished service over a sustained period.

Robert D. Jamison, Marvin Bailey Scott, of Virginia, to be an Under Secretary of of Indiana, to be a member of the National Homeland Security. Council on the Humanities for the remainder of the term expiring January 26, 2010, vice Robert G. McSwain, Thomas K. Lindsay, resigned. of Maryland, to be Director of the Indian Health Service, Department of Health and Carol M. Swain, Human Services, for the term of 4 years, vice of Tennessee, to be a member of the Na- Charles W. Grim, resigned. tional Council on the Humanities for a term expiring January 26, 2014, vice Sidney Deanna Tanner Okun, McPhee, resigned. of Idaho, to be a Deputy U.S. Trade Rep- resentative, with the rank of Ambassador, vice Karan K. Bhatia. Withdrawn December 19

Anne Woods Patterson, Robert D. Jamison, of Virginia, a career member of the Senior of Virginia, to be Under Secretary for Na- Foreign Service, class of Career Minister, for tional Protection and Programs, Department the personal rank of Career Ambassador in of Homeland Security, vice George W. recognition of especially distinguished serv- Foresman, resigned, which was sent to the ice over a sustained period. Senate on September 4, 2007.

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Checklist Fact sheet: Energy Independence and Secu- of White House Press Releases rity Act of 2007 Released December 20 The following list contains releases of the Office Fact sheet: Lt. Gen. James B. Peake (Ret.), of the Press Secretary that are neither printed as items nor covered by entries in the Digest of M.D.: ‘‘A Worthy and Strong Leader’’ for Other White House Announcements. Our Nation’s Veterans Fact sheet: Year in Review: 2007 Released December 15 Fact sheet: The Mortgage Forgiveness Debt Statement by the Press Secretary on the Relief Act of 2007 Thirteenth Conference of the Parties to be hosted by the President of Indonesia in Bali Released December 21 Transcript of a press gaggle by Deputy Press Released December 17 Secretary Tony Fratto Fact sheet: FISA Legislation Necessary To Statement by the Deputy Press Secretary: Keep Our Nation Safe December 23 Elections in Thailand Released December 18 Statement by the Press Secretary announcing Transcript of a press briefing by Press Sec- that the President signed H.R. 365, H.R. 710, retary Dana Perino H.R. 2408, H.R. 2671, H.R. 3703, H.R. 3739, H.J. Res. 72, S. 597, S. 888, S. 2174, S. 2371, Statement by the Press Secretary on the S. 2484, and S.J. Res. 8 President’s travel to Israel, the West Bank, Kuwait, Bahrain, the United Arab Emirates, Statement by the Press Secretary on the res- Saudi Arabia, and Egypt from January 8–16, ignation of Andrew S. Natsios as Presidential 2008 Special Envoy to Sudan Statement by the Press Secretary: Nuclear Weapons Stockpile Transformation Statement by the Press Secretary announcing Acts Approved that the President signed H.R. 3315 by the President Statement by the Press Secretary on disaster assistance to Oklahoma Approved December 18 Fact sheet: Energy Bill Responds to Presi- dent’s ‘‘Twenty in Ten’’ Vision H.R. 3315 / Public Law 110–139 Released December 19 To provide that the great hall of the Capitol Visitor Center shall be known as Emanci- Transcript of a press briefing by Press Sec- pation Hall retary Dana Perino Statement by the Press Secretary on a New Approved December 19 York Times story on the White House’s in- volvement in the CIA’s decision to destroy H.R. 6 / Public Law 110–140 interrogation tapes Energy Independence and Security Act of 2007 Statement by the Press Secretary on congres- sional passage of Alternative Minimum Tax H.R. 4118 / Public Law 110–141 legislation To exclude from gross income payments Statement by the Press Secretary on the re- from the Hokie Spirit Memorial Fund to the authorization of State Children’s Health In- victims of the tragic event at Virginia Poly- surance Program (SCHIP) legislation technic Institute & State University

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Approved December 20 H.J. Res. 72 / Public Law 110–149 Making further continuing appropriations for H.R. 3648 / Public Law 110–142 the fiscal year 2008, and for other purposes Mortgage Forgiveness Debt Relief Act of 2007 S. 597 / Public Law 110–150 Approved December 21 To amend title 39, United States Code, to extend the authority of the United States H.R. 365 / Public Law 110–143 Postal Service to issue a semipostal to raise Methamphetamine Remediation Research funds for breast cancer research Act of 2007

H.R. 710 / Public Law 110–144 S. 888 / Public Law 110–151 Charlie W. Norwood Living Organ Donation Genocide Accountability Act of 2007 Act H.R. 2408 / Public Law 110–145 S. 2174 / Public Law 110–152 To designate the Department of Veterans Af- To designate the facility of the United States fairs outpatient clinic in Green Bay, Wis- Postal Service located at 175 South Monroe consin, as the ‘‘Milo C. Huempfner Depart- Street in Tiffin, Ohio, as the ‘‘Paul E. Gillmor ment of Veterans Affairs Outpatient Clinic’’ Post Office Building’’ H.R. 2671 / Public Law 110–146 To designate the United States courthouse S. 2371 / Public Law 110–153 located at 301 North Miami Avenue, Miami, To amend the Higher Education Act of 1965 Florida, as the ‘‘C. Clyde Atkins United to make technical corrections States Courthouse’’ S. 2484 / Public Law 110–154 H.R. 3703 / Public Law 110–147 To rename the National Institute of Child To amend section 5112(p)(1)(A) of title 31, Health and Human Development as the Eu- United States Code, to allow an exception nice Kennedy Shriver National Institute of from the $1 coin dispensing capability re- Child Health and Human Development quirement for certain vending machines H.R. 3739 / Public Law 110–148 S.J. Res. 8 / Public Law 110–155 To amend the Arizona Water Settlements Providing for the reappointment of Patricia Act to modify the requirements for the state- Q. Stonesifer as a citizen regent of the Board ment of findings of Regents of the Smithsonian Institution

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