Presidential Documents

Weekly Compilation of Presidential Documents

Monday, July 17, 2006 Volume 42—Number 28 Pages 1301–1337

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Addresses and Remarks Interviews With the News Media See also Meetings With Foreign Leaders Interview with foreign journalists—1306 Germany, welcoming ceremony in Stralsund— News conference with Chancellor Merkel of 1326 Germany in Stralsund, July 13—1327 Office of Management and Budget Mid- Meetings With Foreign Leaders Session Review—1315 Germany, Chancellor Merkel—1326, 1327 Radio address—1301 Slovenia, Prime Minister Jansa—1302 Russia, discussion with civic leaders in St. Petersburg—1333 Proclamations Special Olympics, dinner—1305 Parents’ Day—1326 Treasury Department, swearing-in ceremony for Secretary Paulson—1302 Statements by the President Wisconsin See also Bill Signings Allen-Edmonds Shoe Corp., in Port Commission for Assistance to a Free Cuba, Washington—1319 report—1304 Reception for gubernatorial candidate Mark India, terrorist attacks on commuter trains in Green in Milwaukee—1320 Mumbai—1325 President Gerald Ford, honoring birthday— Bill Signings 1334 Coast Guard and Maritime Transportation Act Supplementary Materials of 2006, statement—1325 Acts approved by the President—1337 Communications to Congress Checklist of White House press releases— 1337 International Telecommunication Union Digest of other White House Constitution and Convention, message announcements—1334 transmitting amendments—1305 Nominations submitted to the Senate—1336

Editor’s Note: The President was in St. Petersburg, Russia, on July 14, 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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The President’s Radio Address Our economy is also thriving because July 8, 2006 America remains the world’s most innovative nation. During my trip to Illinois, I visited Good morning. This week I visited the city a company called Cabot Microelectronics, of Chicago. In that great city and across which makes products for manufacturing America, our strong and growing economy semiconductor chips and other high-tech is creating jobs and delivering prosperity to components. Cutting-edge firms like Cabot more of our people. are creating good jobs for our workers and In the Chicago area, businesses have helping to keep America competitive in the added more than 74,000 new jobs over the global economy. past 2 years. And in Illinois, the unemployment rate has fallen to 4.6 percent, the lowest To help companies like Cabot maintain our Nation’s competitive edge, I proposed rate there in over 51⁄2 years. We have good news about our national my American Competitiveness Initiative. economy as well. On Friday, we learned that This initiative will double Federal funding the American economy created 121,000 new for research in promising areas such as jobs in June, and it has created over 5.4 mil- nanotechnology, supercomputing, and alter- lion jobs since August 2003. We now have native energy sources. The initiative will also added jobs for 34 straight months, and the encourage bolder private sector investment unemployment rate is 4.6 percent. in technology and help ensure that every In the first quarter of 2006, our economy American child has the math and science grew at an impressive annual rate of 5.6 per- skills needed for the jobs of tomorrow. cent. This follows our economic growth of Last month, the House of Representatives 3.5 percent in 2005, the fastest rate of any approved full funding for the basic research major industrialized nation. And because component of this initiative. I urge the Sen- taxes are low, our workers are keeping more ate to follow the House’s lead, so America of the money they earn. can remain an innovative nation that com- Behind each of these positive statistics are countless stories—stories of workers who petes with confidence. start each day with hope because they have Americans are living in times of great hope a job that will help them build a better life, and great opportunity. By keeping our taxes stories of families with more money in the low, keeping our country competitive, and bank for college tuition or a downpayment keeping this a welcoming nation, we will add on a home, stories of small-business owners to our prosperity, and we will create a better who know they can hire more workers and America for future generations. grow with confidence. Our economic expansion is lifting the lives Thank you for listening. of millions of Americans, and to keep this expansion going, we must maintain the NOTE: The address was recorded at approximately progrowth, low-tax policies that helped to 10:06 a.m. on July 7 at the InterContinental Hotel launch it in the first place. The tax relief we in Chicago, IL, for broadcast at 10:06 a.m. on July delivered has helped unleash the entrepre- 8. The transcript was made available by the Office neurial spirit of America and kept our econ- of the Press Secretary on July 7 but was embar- omy the envy of the world. So I will continue goed for release until the broadcast. The Office to work with Congress to make that tax relief of the Press Secretary also released a Spanish lan- permanent. guage transcript of this address.

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Remarks Following Discussions With Slovenia is a small country, it completed its Prime Minister Janez Jansa of allotment of troops in the NATO operations. Slovenia Based on the fact that we got a lot of help during our entering the NATO—and Euro- July 10, 2006 pean Union, we got a lot of help—we feel that now it’s our obligation that we help oth- President Bush. Mr. Prime Minister, ers to do the same. As I mentioned before, thank you for coming. It’s been a really fas- Slovenia will be presiding the European cinating discussion we’ve had. First, I want Union in 2008, during which time there will to thank you for your friendship. I thank you be a summit between the European Union for your leadership. I really appreciate the countries and the United States. We would fact that you have made the courageous deci- be very happy if we could welcome you then sion to help two young democracies, Afghani- in Slovenia. stan and Iraq, succeed. Your contributions President Bush. Thanks for coming. Ap- in Afghanistan and Iraq will make a dif- preciate it very much. Thank you. ference in achieving peace. And so thank you for that very much. NOTE: The President spoke at 10:51 a.m. in the I really appreciate your briefing on your Oval Office at the White House. Prime Minister neighborhood. The Prime Minister is a man Jansa spoke in Slovenian, and his remarks were translated by an interpreter. who has got clear vision. He understands how to explain problems in a way that will help yield results. And so the fact that you talked Remarks at a Swearing-In Ceremony about the Balkans in such clear fashion will for Henry M. Paulson, Jr., as help us work with you to achieve certain ob- Secretary of the Treasury jectives. I want to thank you for that. I fondly remember my visit to your beau- July 10, 2006 tiful country. It was a spectacular visit. I came Thank you all. Please be seated. Thanks back to the States and I told people that if for coming. Good morning. Thank you for you really want to see an interesting slice of being here. I’m pleased to be here at the heaven, go to Slovenia. It’s got a country Department of the Treasury to stand in one that’s got a lot to it. But the most important of its most historic rooms. A hundred years thing, it’s got wonderful people. And I look ago, the vaults of the Cash Room were forward to working with you, Mr. Prime Min- stacked from floor to ceiling with bank notes ister. I’m confident that by working together, and coins and bullion—right here in this we can improve the lives of our respective room. Today there is no longer any cash in peoples as well as improve the lives of those this room; there’s a lot of talent in this room. who are struggling against forms of govern- But this historic space reminds us of our re- ment that won’t allow them to have free ex- sponsibility to treat the people’s money with pression, won’t allow them to self-govern. respect. And in a few moments, Chief Justice And so welcome to the White House, and John Roberts will swear in a man that every thank you for our wonderful meeting. American can have faith in—Hank Paulson. Prime Minister Jansa. Esteemed Mr. Hank comes to his position with a lifetime President, thank you very much for inviting of experience in business and finance. He has me and my delegation to the White House. an intimate knowledge of global markets. He We still remember your visit in Slovenia, and will work to keep this economy of ours com- we hope to continue with good cooperation petitive and growing, and he will work to en- in the future. sure fair treatment for America’s goods and I found very useful your information re- services across the world. garding the development of events in the re- We welcome his family here—his wife, gion of Western Balkans. I’m glad we share Wendy, and his mom, Marianna, his son, the same views regarding the prospectus of— Merritt, and daughter, Amanda. And the in Western Balkans regarding the security other members of the Paulson family who and also the NATO. In spite of the fact that have joined us, thanks for coming. We join

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them in congratulating Hank as he is sworn omy. As he showed in his Senate confirma- in as America’s 74th Secretary of the Treas- tion hearings, he has the ability to explain ury. complex economic issues in clear terms. Peo- I appreciate the Chief Justice joining us ple understand him when he talks. His nomi- today. I appreciate the members of my Cabi- nation received strong bipartisan support. He net who are here to welcome your new col- was confirmed unanimously by the United league. I want to thank Deputy Secretary States Senate. Bob Kimmitt and all the folks who work here Hank is being sworn in in an optimistic at the Department of Treasury. You’re get- time for our country and for our workers. ting a good boss. You’re getting somebody In the first quarter of 2006, our economy you can work with and respect. grew at an annual rate of 5.6 percent. That’s I appreciate the Chairman of the U.S. the fastest growth in 21⁄2 years. We’ve added Federal Reserve—Chairman Bernanke is more than 5.4 million new jobs since August with us. Thanks for coming, Ben. Alright if of 2003. The national unemployment rate is I still call you, Ben? [Laughter] I appreciate down to 4.6 percent. Consumers and busi- the House majority leader, John Boehner, nesses are confident in the future. Produc- joining us. Thanks for coming, John. I appre- tivity is high. That’s leading to higher wages ciate the ranking member of the House and a higher standard of living for our peo- Budget Committee, Congressman John ple. And I look forward to working with Hank Spratt. Thanks for coming, John. I appreciate Paulson to keep this economy growing and you all joining us here today. I want to thank to keep creating jobs and enhance oppor- my friend Don Evans, former Secretary of tunity for our people. the Commerce, joining us. Welcome. We have a broad agenda to pursue. Our The Treasury Department is one of the first challenge is to keep taxes low. Hank oldest in the Federal Government, and every shares my philosophy that the economy pros- person who leads this Department walks in pers when we trust the American people to the footsteps of our first Treasury Secretary, save, spend, and invest their money as they Alexander Hamilton. In more—in the more see fit. Hank understands that cutting taxes than two centuries since he led this depart- have helped launch the strong economic ex- ment, his role has expanded and his respon- pansion that is lifting the lives of millions of sibilities have increased. Today, the Treasury Americans. And he will work with the United Secretary is responsible for policies effecting States Congress to maintain a progrowth, global financial markets, international trade low-tax environment so we can keep our ex- and investment, taxes and spending, and pansion growing. other issues of vital importance to America’s Our second challenge is to bring Federal ability to compete in a worldwide economy. spending under control. We’ll continue to cut The Treasury Secretary also oversees the wasteful and unnecessary spending in the an- minting of the U.S. currency, the manage- nual budget. Hank Paulson understands we ment of public finances, and the enforce- also need to rein in the growth of spending ment of important laws, including our efforts for entitlement programs like Social Security to crack down on terrorist financing. and Medicare and Medicaid. We have a As Treasury Secretary, Hank Paulson will problem with these programs; they’re grow- be my leading policy adviser on a broad range ing fast—they’re growing at a rate faster than of domestic and international economic inflation, faster than the economy, and faster issues, and he will be the principal spokes- than we can afford. If Congress does not act, man for my administration’s economic poli- these vital programs will be jeopardized and cies. He is supremely qualified to take on unfairly burden future generations. And so these important responsibilities. He has we’ll continue to call on the Congress to work served as chairman and chief executive offi- with us to preserve important programs, like cer of one of the world’s leading financial Social Security and Medicare and Medicaid, firms, the Goldman Sachs Group. His dec- for our children and our grandchildren. ades of experience have given him a keen The third challenge is to expand opportu- insight into the workings of our global econ- nities for American workers and businesses

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to compete in a global economy. Hank un- I’m also grateful that Hank Paulson has derstands that the fastest growing markets agreed to succeed John. He grew up on an for American goods and services are over- Illinois farm. He rose to one of the highest seas, and that so long as the playing field is positions on Wall Street, and now he’s about level, American workers and businesses can to be sworn in as the Treasury Secretary of compete with anybody. So we will work to the United States of America. He’s shown open up new markets to American products his talent and initiative as a leader in the pri- and to ensure that our trading partners play vate sector, and today he’s showing his char- by the rules and respect intellectual property acter and patriotism by leaving his career to rights and maintain market-based exchange serve our country. I’m grateful that Hank has rates for their currencies. answered the call to service. Our fourth challenge is to prevent the The men and women of this Department Federal Government from burdening our will have an outstanding leader in Hank economy with excessive regulations that will Paulson. I look forward to working with— drive jobs and capital overseas. As one of the welcome him to our Cabinet. I’m looking for- Nation’s most accomplished investment ward to working with him for the good of bankers, Hank understands how important it our country. And now I ask Chief Justice is to maintain our openness to foreign invest- John Roberts to administer the oath. ment and to keep America an attractive place to do business. So he’s going to be a watch- dog to prevent creeping over-regulation that NOTE: The President spoke at 11:15 a.m. at the burdens our economy and costs America Department of the Treasury. The transcript re- jobs. leased by the Office of the Press Secretary also Our fifth challenge is to keep America included the remarks of Secretary Paulson. competitive by fostering a spirit that rewards innovation and risk-taking and enterprise. America is the most innovative nation in the Statement on a Report of the world because our free enterprise system Commission for Assistance to a Free unleashes the talent and creativity of our peo- Cuba ple. Hank will be a champion for our country’s small businesses and entrepreneurs. July 10, 2006 And he’s going to work to ensure that the Today I approved the second report of the American Dream is within reach of every one Commission for Assistance to a Free Cuba. of our citizens. I also approved a Compact with the People As he pursues this agenda, Hank will build of Cuba, which outlines how the United on the firm foundation laid by Secretary John States will support the Cuban people as they Snow. John is a good fellow; he’s a good man transition from the repressive control of the and a fine public servant. And he assumed Castro regime to freedom and a genuine de- leadership of this Department at a difficult mocracy. The report demonstrates that we time for our economy. During his tenure, are actively working for change in Cuba, not John oversaw a strong economic resurgence simply waiting for change. I call on all our that created millions of jobs for our families democratic friends and allies around the and made America’s economy the fastest world to join us in supporting freedom for growing in the industrialized world. the Cuban people. I applaud the work of the John has also been an important leader in Commission, cochaired by Secretary Rice the war on terror. He directed the Treasury and Secretary Gutierrez. Department’s efforts to crack down on terrorist financing, including a vital program to track terrorists’ use of the international bank- NOTE: The statement referred to President Fidel ing system. John Snow has helped make Castro of Cuba. The Office of the Press Secretary America safer and more prosperous, and I’m also released a Spanish language transcript of this grateful for his distinguished service. statement.

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Message to the Senate Transmitting International Telecommunication Union Amendments to the International Constitution and Convention. Those amend- Telecommunication Union ments will contribute to the International Constitution and Convention Telecommunication Union’s ability to adapt to changes in the telecommunication envi- July 10, 2006 ronment and, in so doing, serve the needs To the Senate of the United States: of the United States Government and United With a view to receiving the advice and States industry. It is my hope that the Senate consent of the Senate to ratification, I trans- will take early action on this matter and give mit herewith the amendments to the Con- its advice and consent to ratification. stitution and Convention of the International George W. Bush Telecommunication Union (Geneva, 1992), The White House, as amended by the Plenipotentiary Con- July 10, 2006. ference (Kyoto, 1994) and the Pleni- potentiary Conference (Minneapolis, 1998), together with the declarations and reserva- Remarks at a Dinner Honoring the tions by the United States, all as contained Special Olympics in the Final Acts of the Plenipotentiary Con- July 10, 2006 ference (Marrakesh, 2002). I transmit also, for the information of the Ladies and gentlemen, thank you for com- Senate, the report of the Department of ing—Mrs. Shriver and Special Olympics ath- State concerning these amendments. letes, friends and family. Mr. President—the The Plenipotentiary Conference (Marra- President of Iceland has joined us—proud kesh, 2002) adopted amendments that would you’re here, President Grimsson. And First expand the field of individuals eligible for Lady of Panama, First Lady Torrijos, is with election to the Radio Regulations Board; pro- us as well. We’ve got Members of the Con- vide for functional privileges and immunities gress and Members of the Senate. Laura and for members of the Radio Regulations Board; I are glad you all are here. Welcome to this strengthen the finances of the International special occasion. Telecommunication Union by, among others, We’re here to celebrate the Special Olym- providing for sector member contributions to pics and to honor a woman who made them defray the expenses of regional conferences possible—Eunice Kennedy Shriver. And in which they participate and clarifying that we’re here to celebrate her birthday. [Laugh- operational plans prepared by the Inter- ter] national Telecommunication Union Sec- In a moment we’ll hear from this woman retary-General and Directors of each of the who has made it her life’s work to create op- International Telecommunication Union sec- portunities for people with intellectual dis- tors must reflect the financial implications of abilities. She founded the Special Olympics the activities proposed; provide for sector in 1968 to get people with intellectual dis- members to be represented as observers at abilities the chance to develop physical fit- meetings of the Council; and recognize the ness, to create friendships, and experience authority of the Radiocommunication Assem- the joy of sports competition and achieve- bly, the World Telecommunication Stand- ment. Today, the Special Olympics includes ardization Assembly, and the World Tele- more than 2.25 million athletes in 150 coun- communication Development Conference to tries. The games have become a source of adopt working methods and procedures for unity and excitement for its participants. their respective sectors. They’ve helped raise awareness of the chal- Consistent with long-standing practices, lenges facing those with intellectual disabil- the United States, in signing the 2002 ities. amendments, made certain declarations and America upholds the values of every per- reservations. Subject to those declarations son and the possibilities of every life. And and reservations, I believe the United States the Special Olympics are an example of should ratify the 2002 amendments to the America at its best. We share with the entire

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world the spirit of joy and kindness that the And then we’ve got the G–8. I think the Special Olympics brings. topics there are relevant—energy security. I If you ever had any doubt about how much view energy security, from my perspective, good one person can do, look no further than as how do we diversify away from hydro- this kind and gracious lady. On this special carbons. That’s the definition of security occasion, I ask you to join me in a toast to from an American perspective. I will be— the Special Olympics and to Eunice Kennedy it just so happens, it’s a really interesting mo- Shriver and to her contributions to our Na- ment where there’s the need to be—protect tion—past, present, and future. God bless. our national security and economic security comes at a time when there’s great concern about global warming, and it turns out that NOTE: The President spoke at 7:40 p.m. in the East Room at the White House. In his remarks, you can achieve economic and national secu- he referred to Eunice Kennedy Shriver, founder rity and protect the environment at the same and honorary chairman, Special Olympics; Presi- time. For example, civilian nuclear power— dent Olafur Grimsson of Iceland; and Vivian that’s going to be an important subject, as Fernandez de Torrijos, wife of President Martin far as I’m concerned. Torrijos Espino of Panama. If you truly are concerned about protecting the environment, then it seems like to me that civilian nuclear power is a good Interview With Foreign Journalists way to go. Technologies have changed; we’ll July 10, 2006 discuss that. Some agree; some don’t agree. But nevertheless, it’s going to be a part of The President. I’m looking forward to it. the dialog. I look forward to talking to them I’m going to see Angela Merkel on her home about our research and development efforts turf. She kindly invited me to go to her part into new types of batteries that will be able of the country. I always view that as a sign to power automobiles for the first 40 miles of generous hospitality, when somebody says, without using gasoline, or talk about use of ‘‘Come by my home area.’’ And I’m looking ethanol or our experimentation and our work forward to going, and I’m looking forward with hydrogen. In other words, there’s a vari- to having a good discussion with her on a ety of things we can talk about to help with variety of subjects. energy—on the energy security issue. I’ve spoken frequently with the Chancellor We’ll talk about infectious diseases. I thank since she’s gotten in, and that’s important, the Russian President for putting that on the because Germany has got a very important agenda. That’s going to be a very important role to play, not only in Europe but around topic—if there were to be a pandemic flu the world. So I’m looking forward to that a outbreak. It’s important for us to have dis- lot. cussed our individual plans and how we in- And then, of course, I’ll be going to Russia tend to work collectively on the problem. and have—Laura and I and the Putins will We’ll talk about education matters. I in- be having dinner, which is a good chance to tend to talk about trade. We’ve got—the continue our friendship. We’ve got a good Doha round is out there, kind of—people are friendship with the Putins. We’re com- wondering whether or not we’ll be able to fortable around them. And then, of course, move it. I’m still upbeat about it, by the way. the next day we’ll have a bilateral meeting, I think we can get something done. I just which will be more business than pleasure. finished meeting with my trade minister and I also am looking forward to that. I’ve spoken our team involved on the subject. But this to Vladimir Putin frequently over the last will be a good forum to talk about it, not couple of weeks on a variety of subjects. And only at the first days of the G–8 but when the world is complex. There are problems the members of the G–20 come. There will that are surfacing. I’ve always felt like it’s best be an important discussion with the leader to work with friends and allies to solve the of Brazil and others. problems. And so we’ll have a variety of top- As well, one of the things we will talk about ics on the agenda. are common values that are important—

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transparency, anticorruption, free markets— The President. Any time. values that tend to bind us and that can unite Q. May I congratulate you, sir, on your us in common purpose. So I’m looking for- recent birthday. I was on the South Lawn ward to it. there, watching. Michael [Michael Backfisch, The President. You were watching me Handelsblatt]. turn 60? [Laughter] Q. No, the Fourth of July, the celebration. Germany-U.S. Relations The President. Let me ask you some- Q. Mr. President, German-American rela- thing, does that seem old to you, 60? tions have improved since Angela Merkel be- Q. No, not at all, sir. came Chancellor. With Silvio Berlusconi The President. Good, yes. [Laughter] being out of office and Tony Blair’s days Q. Sir, you are—— being numbered, has Germany become The President. The American press corps America’s most important pillar in Europe, seems to—makes it seems like it’s a very old and would you even use a formula such as age—people—how old are you, Tom? partnership and leadership, as your father Q. Sixty-one. dubbed the relationship with Helmut Kohl? The President. See. The President. First, let me say, we had Q. Everybody knows your medical stats, disagreements over Iraq, obviously. But apart sir. You are in good condition. from that, I always felt our relationship with The President. Thank you for wishing me Germany was vital and important. Much has a happy birthday. Finally ended. Go ahead. been made about the differences between Chancellor Schroeder and myself, and no Russia-U.S. Relations/World Trade question, there were differences. But I will Organization tell you that from my perspective, and I think Q. Thank you, sir, for indulging us. he would say this, is we’ve tried to work be- I wanted to ask you about the continuing yond that. There were other issues we had Russian integration. Will there be—— to deal with besides Iraq. So the relationship The President. Continuing Russian inte- has been good since I’ve been the President. gration? Angela Merkel comes into office now at Q. Integration into the world bodies. Will a time where we’ve gotten that behind us, there be a deal on the WTO negotiations and we’re moving forward. Remember, one with Russia in St. Petersburg? And also, of the first decisions I made after 9/11 was when do you expect Russia to gain a perma- to go into Afghanistan, and the Germans sup- nent seat at the financial G–7? ported us on that. So there’s—we’ve worked The President. First of all, as far as the together, and I do believe that, as I men- G–8 goes, from my perspective, Russia is an tioned to you, Germany has got a very impor- active participant. President Putin has been tant role to play in Europe and in the world. there; he speaks; he talks; he acts; he inter- And Angela Merkel is assuming the mantle faces. Plus, he’s hosting it—is hosting this G– of leadership, for which I’m grateful. 8. From my perspective, I think the Amer- Secondly, we talked about the WTO nego- ican President and the country must maintain tiations with Russia, and there is—I’ve pre- a lot of good relations with Europe, since sented the letter to the President, which Europe is a—it’s vital. It’s a vital center of makes it very clear, our position, so that trade, and it’s a vital center of exchange, and there’s no ambiguity about what needs to it’s a vital center, I hope, of working together happen in terms of market access from to, kind of, spread common values. But we’ve both—the perspective of both countries. And got a good relationship. we will continue to work, see if we can’t get Andrei [Andrei K. Sitov, ITAR–TASS]. this done. President Putin has got his issues at home; President’s Birthday we’ve got issues here. And that is, we’ve got Q. Thank you, sir, for inviting us, for giving to make sure any agreement we strike is a us this opportunity. good one. And there’s two issues that are very

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important for—a lot of issues are important, you do. So I’m not surprised. I would hope— but I would say the two areas where a lot and I appreciate the commitments. I would of people will be paying attention to it here hope they would—toward, for example, in America is, one, on agriculture, we want training through NATO or reconstruction to make sure that if somebody says they’re aid. This is an historic time. going to take our products into their country, And one of the messages I’ll be sending they’ll do it. And secondly, the other is intel- people at the G–8 is, liberty is universal; the lectual property rights. And that’s what a lot world is better off when there’s free societies. of people will be looking at from this per- We’ll worry about our own selves, of course, spective. I’m sure Vladimir Putin has got but we’ve also got to need to worry about pressures on his side too. others living under the—that may live under I do believe it’s in our country’s interest the clutches of a tyrant or others who are to have Russia as a member of the WTO. trying to build a democracy. And we would It’s been a difficult negotiation, because hope that established democracies would there’s more than one constituency. That’s help young democracies grow, and there’s all what President Putin has got to understand. kinds of ways you can do that. There’s a dif- One issue—not just satisfying what our trade ference of opinion, obviously, in certain cor- negotiators think is fair; we’ve got to make ners as to whether or not we should have sure we can get it through the Congress. gone into Iraq in the first place. But now But others are watching as well; other na- that we’re there, the hope is that we can work tions are watching the set of negotiations. So with nations to help build the new democ- hopefully we can get it done. I’m optimistic racy. And that’s not my appeal; that’s the ap- about it. peal of Prime Minister Maliki and others. So Mario [Mario Platero, IlSole24Ore], con- I’m confident we can work with the Govern- gratulations to you . ment, looking forward to it. Q. On Afghanistan, you hope they will 2006 World Cup stay? Q. Thank you. Thank you, Mr. President. The President. Of course I do. It’s a new Did you watch the game? democracy. We’ll see. Every country gets to The President. I watched some of it. make its own mind what to do, but I would hope that those who are weighing whether Italy-U.S. Relations/War on Terror or not it makes sense to stay or go look at Q. Mr. President, the new Italian Govern- the consequences of failure and realize the ment has stated that there are, and I quote great benefits of liberty for the people of Af- the Italian Foreign Minister, Mr. D’Alema, ghanistan. An elected government there—so- ‘‘evident differences with the U.S., certainly ciety is changing. It takes hard work. I hap- with respect to policies from the previous pen to believe the hard work it takes is nec- years.’’ And a decision about whether to stay essary for peace. in Afghanistan will be made in the next few Masaomi. Did I say it right? days, and a decision has been made to with- draw completely from Iraq, contrary to what North Korea the commitment of the previous Govern- Q. Masaomi. ment was. Are you disappointed by that? The President. Yes, see, pretty close. The President. First of all, I want to thank [Laughter] the Italian people and the Government for Q. Thank you very much. I have a question their contributions in Iraq. They were there on North Korea. Security Council is about during some of the most difficult times. And to adopt North Korea resolution. The U.S. the previous Government made a commit- had vowed to continue diplomatic efforts to ment and met its commitment, and we’re resolve the issue. But what kind of measures very grateful for that. The current Govern- will you take to get North Korea back to the ment campaigned on not staying in Iraq; six-party talks? that’s what they said. So when you win elec- The President. First of all, I want to thank tions, you’re supposed to do what you say the Japanese contribution in the Security

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Council. Secondly, I think there’s an inter- energy that may be the cause of the worry esting new development, that the Japanese about insecurity in the first place. have decided to delay tabling the resolution And so the German Government is going to give the Chinese a chance to go to to have to make its decision as to whether Pyongyang to have a discussion with the lead- or not it makes sense to have a supply—one- er in North Korea, with the desire of having third of its supply from a single source. I can them come back to the table. So that’s where tell you this, I’ve told the American people we are—them being the North Koreans— we will spend billions to put technology in come back to the table. place or achieve technological breakthroughs And that’s where we are. And so the Secu- that will enable future Presidents to say, ‘‘I rity Council option is always there. But to no longer have to worry about a single source answer your question, the strategy at this of supply; I no longer have to worry about point in time is for the Chinese to travel and disruption; I no longer have to worry about to make the claim that it would be in North politics.’’ And I think the world needs to go Korea’s interests that they come back to the there, in my own judgment. I think the whole table and remind them they’ve already been world would be better off if we’re less reliant at the table and they agreed to a Korean Pe- upon forms of hydrocarbon. ninsula that is nuclear-weapons free. That’s Is it possible? Yes, it’s possible. We’re what they’ve agreed to—they being the spending over a billion dollars on hydrogen North Koreans, along with the United States, technologies and research to determine the Russians, the South Koreans, the Japa- whether or not you can actually drive your nese, and the Chinese. So that’s where we automobiles with hydrogen, a byproduct of are. which is nothing, water. The issue with hy- Michael. drogen, however, is, one, obviously, the technologies. But it takes a fair amount of power Energy to create the hydrogen. And therefore, the Q. Mr. President, energy security—25 question is, will nations such as ours, and oth- percent of Europe’s natural gas consumption ers, be willing to use nuclear power to be is satisfied by Russia. In the case of Germany, able to provide the power to create the hy- it’s more than one-third. Is Europe, is Ger- drogen in the first place? It’s a policy choice many too energy-dependent on Russia, and countries are going to have to make. do you see the ensuing danger that Russia We are working with India and China, for has the means to potentially blackmail Eu- example, on nuclear power. I think it’s in rope? everybody’s interest that these new, growing The President. I think each nation or each economies have—that the appetite for hy- group of nations has to make their own na- drocarbons in these growing economies is tional security calculations. I can just give you lessened with the advent of nuclear power. my perspective where the United States is, I know it’s in—it really is in everybody’s in- and you can draw whatever conclusions you terest because of the globalization of energy want from that. demand. In other words, India demands I think—we are dependent on oil from, more; it causes your prices to go up. in some cases, unstable parts of the world. And so our contribution to trying to deal And while you may be able to manage your with energy security is to not only spend way through the short term; in the long term, money here at home but also to work with eventually I think that will be a problem for developing countries to reduce their appetite national security purposes here. And there- for hydrocarbons. And to this end, we’re fore, when you talk about energy security, working with Japan and Russia, France, and it is part—people say, ‘‘Well, security is how Great Britain to spend money to come up you guarantee supply.’’ That’s one view of with a fast breeder reactor program, so that security. It’s just that supplies can get dis- we can reprocess, burn, and reduce the rupted sometimes. I view security as diver- amount of waste, which will hopefully then sification away from a particular source of make the idea of additional civilian nuclear

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power in other countries more palatable po- to transport. Gas requires enormous capital litically. investment. Oil can be transferred by cart, Q. And Russia’s potential blackmailing by trucks. Gas has to be transferred by pipe- power? line, more or less. Now there’s a whole new The President. That’s going to be up to technology coming, which is liquefied natural the Europeans to make that decision. That’s gas, so it can be transported by fleet. And not an issue we worry about here at home. so all I would ask is that there be trans- That’s an issue that the European leaders are parency, that there be—that people know going to have to work through, particularly fully what the rules are, and that the con- at the EU, to make sure that they’re not in tracts be open, easy to understand, and hon- a position where somebody can change the ored. equation. Obviously, there was—some of my Q. And if I may stay with the neighbor- friends who were the leaders in Europe were hood for a second there. You recently hosted somewhat concerned about the Ukrainian the President of Georgia. Why do you think issue. We expressed our opinion on that very it’s in NATO’s interest to admit a country clearly. But the decisionmakers, your leaders, with two internal conflicts on its territory? are going to have to make the decision as The President. I think it’s in the world’s to whether or not they view the current status interest that there be peaceful resolution of as something that they need to diversify away those two internal issues. I also think it’s in from. And I just laid out some ideas as to NATO’s interest to welcome countries which how, at least, we’re trying to do that. adhere to rule of law and marketplace eco- Andrei. nomics, a country that is a democracy, a country which allows for public dissent and Alternative Fuel Sources/Georgia free press. I think those are all wonderful Q. You just gave me an opening there—— values that ought to be incorporated—that The President. Well, I’m trying to, NATO—that will benefit NATO, with the in- Andrei. I’m Mr. Thoughtful, as you know. corporation of a country like Georgia. It’s not [Laughter] a given that Georgia enters. All I said was Q. ——by referring to Ukraine, sir. Russia, that Georgia ought to be—that the way for- for years, has been subsidizing its neighbors ward into NATO for Georgia ought to be with energy supplies. President Putin re- clear, and the road ought to be clearly delin- cently suggested that it was to the tune of eated so that they can then do the things $3 billion to $5 billion a year. Basically he necessary to earn NATO membership. said, ‘‘If any new friends of those countries There’s some question as to whether or want them to have cheap energy, are they not the United States was committed to this willing to pay?’’ So is this country willing to Georgian ascension, at least to be a part of pay the same amount for cheap gas for the MAP Program. I think I cleared that up. Ukraine and Georgia? I think people pretty understand—pretty The President. Well, look, there’s a pretty well understand my position on that now. good market. I mean, there’s a marketplace. Q. That’s good. Thanks. And the definition of price—you can judge The President. Mario. whether or not it’s fair, given kind of com- parable situations elsewhere. Michael’s point Italy-U.S. Relations is, if you’ve got a sole source of supply or a significant sole source of supply, sometimes Q. Yes, Mr. President. that source of supply can set the market. And The President. So let me ask you some- I would think that what most consumers thing, Mario. Was your face painted yester- would want was fair, transparent pricing. day? [Laughter] One way to make sure you’ve got fair pric- Q. Mine wasn’t. But one of a friend of ing is to have alternative sources of energy mine was, but my dog had an Italian flag. so that you’re able to make different choices, The President. Very good. [Laughter] and that’s very difficult, particularly when it Q. So that created quite an impression. comes to natural gas. Gas is a hard product Mr. President, two senior officials of SISMI,

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the Italian counterintelligence service, have and great respect for the country of Italy. been arrested just recently. Obviously, people are so different that you’ve The President. Mario, I’m going to give just got to gauge your relationship to meet you a chance to ask another question because certain objectives. And our objective with our I’m not going to talk about ongoing cases. European friends is to have a Europe that If you’d like to come up with another ques- is whole, free, and at peace and is in close tion—— concert with the United States. Q. It’s an open case. It’s open in the sense And so I think in this case, Prodi and that today, there has been a request from Berlusconi share that objective, both share the magistrate for the extradition of 26 the same objective; same in Germany. And CIA—— so I deal with them differently. They’re just The President. Mario—Mario—— different types of people with different back- Q. In principle, you would—— grounds. But I’ve known Romano Prodi, par- The President. Mario, no, I’m not going ticularly since he was the head of the EU. to talk about the case. You can ask another I’ve worked with him quite a bit. Ask him question, since I cut you off before you were about the time when I was riding my moun- able to ask your full question. tain bike on the beaches of Sea Island, Geor- Q. You confuse me with the soccer. gia. I came roaring by as fast as I could. [Laughter] There was Prodi with his head down. I made The President. This is just in fairness. some kind of noise or something startled him Q. Okay. out of his walking shoes, you know. [Laugh- The President. Gone from Mr. Thought- ter] My point is, there he was. He’s a guy ful to Mr. Openminded here. [Laughter] who I felt comfortable enough roaring by on Q. Well, Mr. President, you’ve known Mr. a mountain bike, three Secret Service agents Prodi for a long time, and you’ve known Mr. spewing up sand. [Laughter] Berlusconi—you’ve known both of them. I know him. I feel comfortable talking to And how would you assess the personal rela- him. I may—he may not agree with me. But tionship that you had with Mr. Prodi and with the fundamental question I think you’re Mr. Berlusconi? Is there a difference how searching for is, can you still have a good comfortable would you feel with one or the relationship even though you disagree on other? issues? And the answer is, yes. That’s part The President. I feel very comfortable of life. There’s a—look, I’m the kind of per- with both. The first thing that’s important is, son, I make decisions; I deal with problems; I feel comfortable with the people of Italy. I want to solve them. And sometimes—and, We’ve got very close ties. you know, I make it clear where I stand. And And let me just take a step back. What’s that creates—in the world, people say, interesting about our country is that we’ve ‘‘Wow, that creates tension.’’ But privately, got—we’ve had close ties with a lot of coun- it doesn’t. That’s what you’ve got to know, tries. My ranch was settled by Germans. that there’s a—and I work hard to make sure Q. Really? that I’ve got good personal relationships with The President. Yes. There’s a huge num- these leaders so we can solve problems. And ber of Italian Americans, a lot of Russian I’m confident that—— Americans. You know, Norm Mineta in my Q. Will you see him in—— Cabinet is a Japanese American. In other The President. Prodi? words, so when you talk about relations with Q. ——in St. Petersburg, in a bilat- an American President, you’ve got to under- eral—— stand that there’s a—at least I have, I know The President. I don’t even know. I’m not my predecessors have connections, close the scheduler, Mario. But I will see him. connections with people who have fond—ei- Q. In a bilateral? ther fond memories and/or great pride in The President. Well, I’ll take him aside, their motherland. just the two of us, if that’s—I’ll take your And the way I like to define relations is recommendation for it. When I see him, I’ll that we’ve got—that I’ve got good relations take him aside and congratulate him. I don’t

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know whether or not we’re having bilaterals have good relations with other friends and or not. Are we? acquaintances. National Security Adviser Stephen J. And so that’s going to be an interesting Hadley. We’re still looking at it. issue as to whether or not that’s the case, The President. Mario, you want me fo- whether that’s a campaign issue in your de- cused on the big picture. I don’t know my mocracy, whether or not it even matters to schedule. [Laughter] the people of Japan. But that’s why you have Q. Thank you. elections. That’s why you have decision- The President. All right. Masaomi. making in the democratic process, to determine whether that’s an important issue. Japan-U.S. Relations And that’s—you know what’s interesting about the world in which we live, if the Chi- Q. Mr. President, U.S.-Japan relations are enjoying a golden age, a so-called golden age, nese are able to get the North Koreans back which can be credited to close friendship that to the table, think about a negotiating ar- you and Prime Minister Koizumi share. On rangement where you’ve actually got the Jap- the other hand, Japanese relations with anese and the Chinese and the South Kore- China and South Korea have chilled on ans and the Americans and the Russians all Koizumi’s watch. So how will you build the sitting down, trying to convince Kim Jong Il U.S.-Japan alliance with the next Prime Min- to give up his nuclear weapons program. It’s ister? And what do you hope to see in his pretty remarkable, when you think about it. approach to diplomacy towards Asia? And it’s—and so I happen to believe—and The President. First of all, our relations the same thing is remarkable, in some ways, are good. I’m not sure any President and that we’re still working very closely together Prime Minister are going to be able to dupli- on Iran. Germany has been great on Iran, cate our trip to Graceland. [Laughter] It’s by the way. Appreciate the Chancellor’s an unbelievable experience, if you think strong position. about it. It’s really one of the interesting les- And the reason I bring this up, these are sons of history, isn’t it? And what I—I’m told issues which we will solve, and we’re more these guys are sick of hearing me say this, likely to solve them more quickly when we but I’m going to say it anyway—what the work together to solve them. And it’s—to me, President referred to by ‘‘these guys’’ are the it’s a very positive development. It’s a new American people sitting behind—so my dad framework. It’s kind of an interesting—it’s fought the Japanese. And that is startling to an interesting data point in history to know me that his son takes the Prime Minister to that nations with different backgrounds and Graceland. Something happened. We fought at times warring with each other are now the Germans; now we’re very close friends. working together to deal the common—with And what happened was, there’s a—liberty the common threats. And it’s a threat if the took hold, a Japanese-style democracy. That’s Iranians have a nuclear weapon. It’s a threat what we’re working on in Afghanistan and to world peace. It’s a threat to all of us. It’s Iraq. Those are the stakes, as far as I’m con- a threat for North Korea to develop a nuclear cerned. weapon. It’s a very destabilizing event in the And so we’ve got a great relationship, and Far East. So we’re working very closely with I intend to keep it that way. It’s in American each other to get it done. interests that we work closely with Japan. It’s also in our interests that Japan have got bet- Japan-China Relations ter relations with China and South Korea. And that’s going to be up to the Japanese Q. Do you have any worry about the rela- leaders to make the determination of how tions between Japan and China? to do that. I, of course, have said that to The President. Do I worry about it? Prime Minister Koizumi: ‘‘We would hope Q. Yes. that you would be able to improve relations.’’ The President. Well, I would hope it It’s in our Nation’s interest that our friends would improve, is the best way to put it—

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hope it would improve. I think it’s an impor- voice to, in this case, the Iranians, no weap- tant relationship. And I can’t make it im- ons program. prove. That’s up to the parties to make it I’m not sure I necessarily accept your hy- improve. I can say, I hope it improves, to pothesis that something positive isn’t going both parties, which I’m more than willing to to happen. I don’t know. But what I’m going do. to tell you is, we’ll react to it if it doesn’t, Anyway, looking forward to going. Who’s if something positive doesn’t happen. going? You’re going, Steve? Tom? Stretch, Q. So far, nothing has happened. On the you going? You’re going to be there. Iranian side, it’s been going on for a long Q. Mr. President—— time. The President. No more questions. The President. Right, but there’s a meet- Q. That’s it? ing here pretty soon. Wednesday. Q. One more? Q. So you’re trusting the Iranians? The President. Okay, yes. The President. No, no, no. You’re asking me to—you’re asking me—you’re predicting the outcome of the meeting, and I’m saying, Iran I’m not predicting the outcome of the meet- Q. Great. [Laughter] Mr. President, you ing. And either way, we’ll be prepared to were mentioning Germany’s role vis-a-vis react. Iran. Provided that there is no positive Ira- Q. So there is—— nian response before the G–8 summit—— The President. Good try, though, on the The President. I’m not sure I accept that hypothetical question. yet. Q. Very briefly. Q. Yes, well, let’s just give it a try. The President. Yes, Andrei. The President. Well, it’s hypothetical, Mi- chael. War on Terror Q. Okay, let’s give it a try. What meas- Q. The Russians got their Usama bin ures—— Laden, Shamil Basayev, who was responsible The President. You can try it. Give me for killing the children in Beslan. What do a head’s up. [Laughter] you have to say to the Russians about that? Q. What measures—what kind of sanc- And also, will you be discussing with Presi- tions will the administration strive for? And dent Putin his new idea about the new bind- how do you want to convince Russia and ing treaty to replace the old START I that China to come aboard? expires? The President. We spent a lot of time The President. I’ll be talking to him about talking about these—more than one issue a variety of subjects. Yes, looking forward to now, obviously, Russia and China. But part hearing from that. And I—I guess we’re gath- of diplomacy is just constant work, constant ering the details on the death of the guy, dialog, and constant discussion, and remind to find out more about it, you know. But if people that we have declared common goals. he’s, in fact, the person that ordered the kill- The goal on the Korean Peninsula is a nu- ing of children in Beslan, he deserved it. clear weapons-free peninsula. The goal of the Q. Mr. President, on the U.N.—United Iranians is no nuclear program. Nations, after Kofi Annan—— And everybody has got different interests. The President. It’s an interesting thing And so everybody has got different pressures. about terrorists, by the way, they’ll kill chil- So diplomacy takes awhile. And what you’re dren like that. They don’t care. watching—what the world watches now is diplomacy in action. And we will work very United Nations Secretary-General quietly with our friends to work toward a res- Q. The name surfaced recently of Prince olution of the issue with the goal of achieving Zeid, who is a member of the royal family this thing diplomatically, of achieving this of Jordan—was the representative of Jordan issue—success diplomatically but also with to the U.N. And he would be the first Muslim the goal of saying, you know, with common in case he would run for it.

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The President. You’re trying to rope me work. So I changed the policy. I said it’s not into the—— going to be just the United States dealing Q. No, I’m saying, would you be against with the North Korean leader. We’re also a moderate Muslim? going to have other partners like Japan and The President. You’re trying to get me South Korea and Russia and China. to commit a name, actually talk about names. See, in the past, negotiators from the Q. No, no, no. In general. [Laughter] United States sat down and said this, that, The President. As I understand it, the— and the other, and the North Koreans didn’t traditionally, there’s kind of a—regions ro- honor the agreement. So I’m trying a dif- tate, and we’re really looking in the Far East ferent approach. My last approach didn’t right now to be the Secretary-General—Sec- work, so hopefully this approach will work. retary-General there. Holland [Steve Hol- And I think it’s more likely to work because land, Reuters]. you’ve got more than just one person saying Q. Oh, sorry. [Laughter] it—you know, ‘‘Get rid of your weapons pro- The President. Well, that’s kind of where grams.’’ Now we’ve got neighbors saying the the current—that’s kind of where the cur- same thing. And so that’s where we are right rent—he’s over 60. No he’s not—53? now. Q. Fifty-one. What’s interesting, I thought, was that, you The President. Fifty-one. That’s kind of— know, the Chinese, the United States, Japan, his birthday was recently. That’s kind of— and South Korea, Russia all said, ‘‘Don’t fire so the discussions mainly, at least the ones your weapon; don’t fire your rockets.’’ And I’ve heard about this, somebody from the he fired his rockets. eastern—Far East—— And that ought to be an interesting lesson Q. Asia. to all of us involved in this relationship, that The President. Asia, yes. So this is the we’ve got to stay very close together and first I’ve heard of this suggestion. And you’ll speak with one voice, because it’s very—he find that we will work closely with friends must hear clearly that that kind of behavior and allies to come up with the best candidate, is unacceptable. People have asked me, what but we won’t be committing publicly, like do I think he’s trying to achieve? I don’t you’re trying to get me to do. know. It’s a nontransparent society. It’s hard Q. But with general principle, will you be to tell. Like, if I were to make a decision, against a Muslim, in Indonesia, for example, you’d be reading about it. People, reporters who is up for the position? all over the place trying to—‘‘Why did he The President. Not at all, would not be do this; why did he do that?’’ And that’s good. against a Muslim. The criterion I’m for is That’s what an open society does. I don’t somebody who wants to spread liberty and know what objective he was trying to achieve. enhance the peace, do difficult things like But from my perspective, it sent a signal confront tyranny, worry about the human that he really was not afraid of isolating him- condition, blow the whistle on human rights self even further. My attitude is, is that the violations. people of North Korea can have a much bet- Yes, sir. Final question now, for certain. ter life than they’ve—than their leader has Michael roped me into another round there. chosen for them. There’s tremendous starva- [Laughter] tion in North Korea. There’s huge concentra- tion camps. It’s unacceptable behavior, as far North Korea as I’m concerned. Q. Going back to North Korea, do you still And I would hope that the North Korean think U.S. can deal with Kim Jong Il in re- leader would choose a different path forward. solving the crisis, or do you have sort of re- And the way to do that is to get rid of your gime change in mind? weapons programs in a verifiable fashion. The President. What we want is for the There’s a better way forward for the Iranian North Korean leader to give up his weapons leadership than isolation, and that is to get programs. And the United States tried to deal rid of the weapons programs in a verifiable with him bilaterally in the past, and it didn’t fashion. It’s their choice to make. We’ve

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made our—the United States has made its tion; Secretary-General Kofi Annan of the United choice; Germany has made its choice; Russia Nations; and Prince Zeid Ra’ad Zeid al-Hussein has made her choice; Japan has made its of Jordan. The transcript was released by the Of- choice. We’ve made our choice; the choice fice of the Press Secretary on July 11. A tape was is theirs. And I would hope that these leaders not available for verification of the content of this interview. would recognize that there is—there’s benefits for their people. They truly care about their people. There’s benefits for their peo- Remarks on the Office of ple. Management and Budget Mid- You know, one of the most moving mo- Session Review ments of my Presidency came when the young—when the mother of—young daugh- July 11, 2006 ter was kidnaped by the North Koreans. The President. Thank you. Thanks for Imagine. Anybody got children here? Imag- coming. The White House is the people’s ine if some foreign nation ordered your child house, and I’m here to talk about the peo- to be kidnaped, just removed. And never— ple’s money. We’re glad you’re here. As you they never heard from the girl again. They know, every year, my administration pro- went—she was telling me, she was won- duces a budget that lays out our priorities dering whether she was murdered, and they and our goals. And every summer, the Office searched everywhere. It’s unbelievable, isn’t of Management and Budget releases a report it? It turns out that they believe that she was called the Mid-Session Review that tells the in North Korea, a regime that just felt like American people how much progress we’re there was no accountability and no regard making towards meeting our fiscal goals. for human rights and just took this young Today OMB Director Rob Portman re- child. leased the latest review. I’m pleased to report So the mother was sitting there in the Oval that it’s got some good news for the Amer- Office with me. It was incredibly emotional. ican taxpayer. This economy is growing; Fed- After all these years, she still felt this pain eral taxes are rising; and we’re cutting the in her heart. And my point is, is that there’s Federal deficit faster than we expected. a better way forward than that, to live in a This good news is no accident. It’s the re- society like that. And the choice is his to sult of the hard work of the American people make, in North Korea’s case. I hope he and sound policies in Washington, DC. This makes the right choice. It’s important for all morning I’m going to discuss the way for- of us to continue to make that very clear. ward; I’ll explain why our progrowth policies If he chooses the other way, he’ll be isolated are vital to our efforts to reduce the Federal and his people won’t benefit. deficit, what my administration is doing to Okay. Thank you all. I enjoyed it. work with Congress to eliminate wasteful spending, and why we need to confront the NOTE: The interview was taped at 2:30 p.m. in the Roosevelt Room at the White House. In his unsustainable growth in entitlement spend- remarks, the President referred to Chancellor An- ing. gela Merkel and former Chancellor Gerhard I appreciate our new Secretary of the Schroeder of Germany; President Vladimir Putin Treasury, Hank Paulson, joining us today. of Russia, and his wife, Lyudmila; President Luiz Mr. Secretary, you’ve been on the job one Inacio Lula da Silva of Brazil; Prime Minister Nuri day, and you’ve got a pretty strong record. al-Maliki of Iraq; Chairman Kim Jong Il of North I’m proud that Rob Portman is here, and he Korea; Prime Minister Romano Prodi and former brought his lad with him. [Laughter] I thank Prime Minister Silvio Berlusconi of Italy; Prime the Senate President pro tem, Senator Ted Minister Junichiro Koizumi of Japan; Shamil Stevens, for joining us. Senator, thanks for Basayev, a Chechen separatist leader, who was killed on July 10; and Sakie Yokata, mother of coming. I’m proud you’re here. Thank you a Japanese woman abducted by North Korean au- for your leadership. I also want to thank thorities. Reporters referred to Prime Minister David Dreier, Conrad Burns—Senator Tony Blair of the United Kingdom; Usama bin Conrad Burns, excuse me—— Laden, leader of the Al Qaida terrorist organiza- Senator Burns. That’s okay. [Laughter]

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The President. ——Congressman Joe numbers, there are more families with more Knollenberg, Ander Crenshaw, Marilyn money in the bank for college tuition or a Musgrave, thank you all for coming. Pence downpayment on their homes. Behind these is with us; thanks for coming. I’m proud numbers are small-business owners who are you’re here, Mike. Thank you all for taking hiring more workers, expanding their busi- time to be here to hear this good news. nesses, and realizing the great promise of our You’re responsible, in many ways, for cre- country. ating the conditions for the good news we’re Our job in Washington is to keep this ex- about to talk about. pansion growing—going and to promote When I came to Washington, taxes were progrowth policies that let Americans keep too high and the economy was headed into more of their hard-earned paychecks and aid a recession. Some said the answer was to cen- us in reducing our fiscal deficit. tralize power in Washington and let the poli- In order to reduce the deficit, you got to ticians make the decisions about what to do set priorities. And in working with Congress, with the people’s money. That was one point we’ve set clear priorities. And the number- of view. one priority of this administration and this We had a different point of view. I believe Congress is to make sure men and women that the economy prospers when we trust the who are defending the security of the United American people to make their own decisions States and helping to spread peace through about how to save, spend, and invest. So the spread of liberty get all the help they starting in 2001, my administration worked need from our Government. We will always with the United States Congress, and we de- fund the troops in harm’s way. livered the largest tax relief since Ronald Reagan was in the White House. We cut In an age when terrorists have attacked rates for everyone who pays income taxes. our country and want to hurt us again, we We reduced the marriage penalty; we dou- will do everything in our power to protect bled the child tax credit; and we cut the the American homeland. Those are the clear death tax. We cut the tax paid by most small priorities of this administration, and the clear businesses, because we understand that most priorities of the United States Congress. new jobs are created by small businesses. Fighting a war on terror and defending the And we encouraged economic expansion by homeland imposes great costs, and those cutting taxes on dividends and capital gains. costs have helped create budget deficits. Our Together, these tax cuts left nearly $1.1 responsibility is to win this war on terror and trillion in the hands of American workers and to keep the economy growing. And those are families and small-business owners, and they the kind of policies we have in place. Some used this money to help fuel an economic in Washington say we had to choose between resurgence that’s now in its 18th straight cutting taxes and cutting the deficit. You quarter of growth. The tax cuts we passed might remember those debates. You endured work. that rhetoric hour after hour on the floor of Last year, our economy grew at 3.5 per- the Senate and the House. Today’s numbers cent, and in the first quarter of this year, it show that that was a false choice. The eco- grew at an annual rate of 5.6 percent. Over nomic growth fueled by tax relief has helped the past 3 years, our economy has grown by send our tax revenues soaring. That’s what’s more than $1.3 trillion, an amount that is happened. larger than the size of the entire Canadian When the economy grows, businesses or South Korean economy. grow; people earn more money; profits are Since August 2003, the U.S. economy has higher; and they pay additional taxes on the added more than 5.4 million new jobs. Our new income. In 2005, tax revenues grew by unemployment rate is down to 4.6 percent. $274 billion, or 14.5 percent; it’s the largest People are working. Behind these numbers, increase in 24 years. Based on tax collections there are American workers who start each to date, the Treasury projects that tax reve- day with hope because they have a job to nues for this year will grow by $246 billion, help them build a better life. Behind these or an 11 percent increase. The increase in

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tax revenues is much better than we had pro- wasteful programs, it’s not going to help us jected, and it’s helping us cut the budget def- meet our objectives. And so the second half icit. of the equation is for this administration to One of the most important measures of continue working with the Congress to be our success in cutting the deficit is the size wise about how we spend the people’s of the deficit in relation to the size of our money. economy. Think of it like a mortgage. When Every year, Congress votes to fund the you take out a home loan, the most important day-to-day spending of the Federal Govern- measure is not how much you borrow; it is ment. That’s called discretionary spending. how much you borrow compared to how In other words, the Congress decides how much you earn. If your income goes up, your much to spend on these types of programs mortgage takes up less of your family’s budg- on an annual basis. Every year since I took et. Same is true of our national economy. office, we’ve reduced the growth of discre- When the economy expands, our Nation’s in- tionary spending that’s not related to the come goes up and the burden of the deficit military or homeland security. I told you, our shrinks. And that’s what’s happening today. priorities are our military and protecting the Thanks to economic growth and the rise in homeland. But on other programs, we’ve re- tax revenues, this year the deficit will shrink duced the growth of that discretionary to 2.3 percent of GDP. That’s about the same spending. The last two budgets have actually as the average over the past 40 years. cut this kind of spending. Here are some hard numbers: Our re- The philosophy is clear: Every American gional projection for this year’s budget deficit family has to set priorities and live within its was $423 billion. That was a projection. budget, and so does the Federal Govern- That’s what we thought was going to happen. ment. And I thank the Members of Congress That’s what we sent up to the Congress: for making the tough votes, setting priorities, ‘‘Here’s what we think.’’ Today’s report from OMB tells us that this year’s deficit will actu- and doing the hard work on behalf of the ally come in at about $296 billion. taxpayers of this country. That’s what happens when you implement We made good progress with the emer- progrowth economic policies. We faced dif- gency spending bill that Congress approved ficult economic times. We cut the taxes on in June. You might remember the debate the American people because we strongly be- leading up to that supplemental bill. And lieve that the American people should lead there was a good, constructive debate. And us out of recession. Our small businesses I weighed in. I said that we got to make sure flourished; people invested; tax revenue is that the emergency funding in the bill sup- up; and we’re way ahead of cutting the def- ported our troops and provided help to citi- icit—Federal deficit in half by 2009. zens that were hit by last year’s hurricanes As a matter of fact, we’re a year ahead of and to prepare for the dangers of an outbreak fulfilling a pledge that I told the Congress of pandemic flu. and the American people. I said to the Amer- The onset—I also set limits that I thought ican people, give this plan a chance to work. were acceptable. In other words, we came We worked with Congress to implement this up with our view of what would be a rational plan. I said, we can cut the Federal deficit spending limit for this important piece of leg- in half by 2008—or 2009. We’re now a full islation. And I made it clear to the Congress, year ahead of schedule. Our policies are they sent me a bill that went over the limit, working, and I thank the Members of Con- I’d veto it. We got good relations with Con- gress for standing with us. gress. People took that threat seriously be- See, we cannot depend on just a growing cause I meant it. Congress responded by re- economy, though, to keep cutting the deficit. moving nearly $15 billion in spending that That’s just one part of the equation. We also had been added to the bill. By meeting the got to cut out wasteful spending. See, it’s limit I’d set, Congress ensured funding for okay to create revenue growth; that’s good. vital programs and provided a good example But if we spend all that revenue growth on of fiscal discipline.

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The next test is whether or not we can We’re dealing with the short-term deficit, get a line-item veto out of the United States but there’s another challenge that we face. Senate. A line-item veto is an important tool In the long run, the biggest challenge to our for controlling spending. See, it will allow the Nation’s economic health is the President to target unnecessary spending unsustainable growth in spending for entitle- that sometimes lawmakers put into large ment programs, mandatory programs such as bills. Today, when a lawmaker loads up a Social Security, Medicare, and Medicaid. good bill with wasteful spending, I don’t have Millions of our fellow Americans rely on any choices. I either sign the bill with the these programs for retirement and health bad spending or veto the whole bill that’s care needs. They’re important programs. But got good spending in it. And I think it would the spending for these programs is growing be wise if we’re seriously concerned about faster than inflation, faster than the economy, wasteful spending to enable the executive and faster than our ability to pay for them. branch to interface effectively with the legis- To solve the problem, we need to cut enti- lative branch to eliminate that kind of waste- tlement spending. We need to do something ful spending. about it, is what we need to do. One reason And so we’ve proposed a line-item veto Secretary Paulson agreed to join this admin- that the House of Representatives passed. istration is because he wants to get something Under this proposal, the President can ap- done about these entitlement programs, and prove spending that’s necessary; redline I want to work with him. spending that’s not; and send back the waste- You know it’s so much—easy just to shove ful, unnecessary spending to the Congress for these problems down the road. The easy fix is to say, ‘‘Let somebody else deal with it.’’ a prompt up-or-down vote. In other words, This administration is going to continue try- it’s a collaborative effort between the two ing to work with Congress to deal with these branches of Government, all aimed at mak- issues. That’s why I ran for office in the first ing sure we can earn the trust of the tax- place, to confront big problems and to solve payers. them. That’s why Henry Paulson made the Listen, the line-item veto works. Forty- tough decision to leave the comfort of private three Governors of both parties have this au- life to come in and do something good for thority, and they use it effectively to help re- this country. And the United States Congress strain spending in their State budgets. I’ve needs to feel that same sense of obligation. talked to some of these Governors—used to The time of playing politics with Social Secu- be a Governor. I know what I’m talking about rity and Medicare and Medicaid is over. We when it comes to line-item veto being an ef- need to fix this for younger generations of fective tool. The line-item veto provides a lot Americans to come. of advantages, and one of them is, it acts as I’m optimistic about the future of this a deterrent. See, when legislators think they country, because I’m optimistic about the— can slip their individual items in a spending because I understand the nature of the peo- bill without notice, they do it. ple we got here. I mean, we are an entrepre- If they think that they’re going to try to neurial people. We’re a hard-working, decent slip something in that gets noticed, it means group of citizens. And the role of Govern- they’re less likely to try to do so. We want ment is to foster the entrepreneurial spirit. to make sure that the system we have here It’s to encourage people. And one way you in Washington is transparent and above- do that is to keep people’s taxes low, let them board and fair to the people’s—taxpayers’ keep more of their own money. money. We’ve got great faith in the people’s ability And one way to do so is to make sure that to spend their money wiser than the Federal the President can work with the Congress Government can do. And our faith in the through the line-item veto proposal I sub- people has been proven by the numbers mitted. I strongly urge the United States we’re talking about today. Senate to take this matter up and pass it into We said we got an economic issue, and law. we’re going to let you have more of your own

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money to help us recover from recession, the you’re more productive, it makes you more stock market correction, and terrorist attacks competitive. And so the tax cuts we passed and war and natural disasters. And the people have helped this company. It made a lot of haven’t let us down, have they? This econ- sense. They’ve also helped our country. This omy is strong. economy of ours is growing. The unemploy- We also said, let’s just be patient about ment rate is 4.6 percent nationally, and that’s solving this Federal deficit; we’re not going good news for workers. People are making to take money out of your pocket; let’s grow more money, and that’s good news for work- our way out of it. Let’s keep—let’s set prior- ers. ities when it comes to spending and keep And as a result of a growing economy, we the people’s taxes low, and these revenues collected more money for the Treasury. I will catch up into our Treasury. And they told the American people we would keep have. And we’re reducing that Federal def- spending down and keep progrowth policies icit, through the people’s hard work and the in place to help cut the deficit in half by wise policies in Washington, DC. 2009. As a result of the Mid-Session Review, Today is a good day for the American tax- the numbers that came out of the Mid-Ses- payer. Tax relief is working; the economy is sion Review, I’m able to tell the American growing; revenues are up; the deficit is down; people, we’ll cut the deficit in half by 2008. and all across this great land, Americans are realizing their dreams and building better fu- The projected budget deficit over—of over tures for their families. 420 billion is now assumed to be 296 billion. I want to thank you all for supporting our See, what happens is, when you grow the policies. Thank you for giving me a chance economy by cutting taxes, more tax revenues to come to visit with you. I thank the Mem- come into the Treasury, and that’s what we’re bers of Congress for doing good work. God seeing here. bless you all. I’m looking forward to working with Con- gress to make sure that we continue to hold NOTE: The President spoke at 9:45 a.m. in the spending down, to set priorities, and to be East Room at the White House. wise about how we spend the money. And one of the problems we have in Congress Remarks at Allen-Edmonds Shoe is, sometimes Congressmen and Senators Corporation in Port Washington, stick unnecessary spending into bills. And I believe the President needs a line-item veto Wisconsin to help make sure that there’s fiscal responsi- July 11, 2006 bility in Washington, DC. The President. John, thanks for the shoes, I’m traveling with Congressman Ryan. He and thanks for—— is the sponsor of the House bill, and I appre- John Stollenwerk. You’re welcome. ciate his leadership on this issue. The United The President. ——employing people. States Senate needs to get the line-item veto Mr. Stollenwerk. You’re welcome. to the President’s desk so that the American The President. We’re at one of America’s people can have confidence in our ability to great companies. It’s a privately held com- be wise about how we spend the money. This pany that is making a good product. This is practice about stuffing stuff into these bills a company that has benefited because of the that never gets a hearing or the light of day tax cuts. It’s a subchapter S company. You’ve is just—it’s just not right. And one way to often heard me talk about cutting taxes on bring fiscal sanity to Washington and fiscal individuals benefits small businesses; this is discipline to Washington is to give the Presi- a company that had benefited from the tax dent the line-item veto. cuts. It’s also a company that made additional I’m thrilled to be here at Allen-Edmonds. investments because of the tax relief we I’m thrilled with my new shoes. [Laughter] passed. I wish I had them on the Fourth of July. And when you make investments, it makes [Laughter] your company more productive. And when Mr. Stollenwerk. You’re a little late.

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The President. But these shoes last a long somebody who shoots straight with the peo- period of time. I intend to be wearing them ple. And that person is Mark Green. for a lot of Fourth of Julys in coming. This There is no doubt in my mind he will be is an American-based company making good a great Governor for Wisconsin. I got to American products. And I’m proud of what know him; this isn’t the first time I’ve been you’re doing here, John. with him before. I’ve seen him in action in I’ll tell you something interesting: So we’re Washington, DC. He is a highly respected working the floor out there, talking to the Member of the United States Congress. Peo- people who make this company go, and he ple trust his word. When he says something, knows everybody’s name. That’s a good sign. he means it. He is a positive influence in That’s a caring chief executive officer who Washington, DC. He can bring people to- cares first and foremost about the people gether, which is what you need in this State. here on the floor. And guess what happens He is an honorable, decent man, and I am when you have somebody like that who takes proud to stand with him as he runs for Gov- care of his workers? They make good prod- ernor. I want to thank you all for supporting uct. And so I’m proud to be an Allen-Ed- him. monds customer, and I’m proud to be here I know something about running; you can- at this factory, and thanks for having me. not win unless your friends step up. And to- Mr. Stollenwerk. Thank you. night you have stepped up. And I know Mark The President. Yes, sir. is grateful, and so am I, for coming tonight. Mr. Stollenwerk. And a paying customer So, thanks for being here. at that. You can’t run for Governor unless you The President. Oh, yes. [Laughter] Part have a wife who loves you and a family stand- of the accountability system in Washington. ing with you. And the Green family is a fine, [Laughter] Thank you all. fine family. I want to thank Sue for being Q. Do you have a comment on India? here and Rachel and Anna and Alex. The President. No comments today. I was also proud to have met Jeremy and Thank you very much. Thank you. Good to Elizabeth Green, the mom and dad. The see you. mom kind of reminded me of my mom— [laughter]—constantly reminding Mark, you Laughter NOTE: The President spoke at 4:24 p.m. In his know, what to do, how to say it. [ ] remarks, he referred to John Stollenwerk, presi- I said, ‘‘Are you listening to her?’’ He said, dent and chief executive officer, Allen-Edmonds ‘‘Yes, all the time.’’ I said, ‘‘Then you’re going Shoe Corp. to win.’’ Thank you all for being here. And by the way, Laura sends her love to the Greens. If you really need help coming Remarks at a Reception for down the stretch, I suggest you invite Laura Gubernatorial Candidate Mark to come here to Wisconsin. She’ll help you Green in Milwaukee, Wisconsin win. She’s a great First Lady. July 11, 2006 We’re having the time of our lives, by the way, and it really helps to—well, I have a Thanks for coming. Thanks for the intro- 45-second commute. [Laughter] And it helps duction. Thanks for supporting the next Gov- to commute to a home where there’s some- ernor of Wisconsin, Mark Green. body you respect and love there. And she I know a little something about what it sends her best. She knows what I know, that means to be a Governor and a chief executive you can’t win in politics alone. And so for officer of government. Here is what you those who have given money, thanks. And need: You need somebody who knows how for those of you who are kind of warming to set an agenda; you need somebody who up for the campaign, thanks in advance for knows how to achieve the agenda; you need what you’re going to do; which is to put up somebody who can get results without wor- the signs, knock on the doors, get on the tele- rying about public opinion polls; you need phones; go to your churches, community somebody who stands on principle; you need centers, your synagogues, your houses of

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worship and say you’ve got a good, decent consin. He is a good friend of mine and a man in Mark Green who can lead this State. good man. I want to thank Mary Buestrin, So thanks for being here. It means a lot and I want to thank Klauser, Jim Klauser and to Mark, and it means a lot to me. I’m trav- thank all the grassroots activists again for eling over from Washington, by the way, with coming. another fine public servant from Wisconsin, These are historic times in which we live. and that’s Congressman Paul Ryan. And I’m glad to have had Congressman By the way, we’re working on an important Green in Washington, DC, during a time piece of legislation in Washington. That is where the President has had to make some to give the President the opportunity to kind tough decisions and the country has been of take some of these special interest spend- through some tough times. We are a nation ing out of these spending bills. We call it at war. I wish I could report differently. But the line-item veto. It’s one way to bring some you need to have a President and you need fiscal sanity to Washington, DC. It’s one way to have leaders who see the world the way to make sure that people don’t play politics it is, not the way we would hope it would with your money. Interestingly enough, the be. And my biggest job, and the biggest job bill passed the United States House of Rep- of people in Washington, DC, is to protect resentatives, and the bill sponsor was this fine the American people from further attack. Member from Wisconsin, Paul Ryan. I want And the way to do that is to stay on the of- to thank you for your leadership. fense, to give the enemy no quarter, and to Green’s leaving the House, and he’s going bring them to justice before they hurt us to be succeeded by speaker John Gard. And again, and that’s precisely what this adminis- I want to thank you for running, and I wish tration will continue to do. you all the very best in your run for the Iraq is a part of the war on terror. It’s the United States Congress, Mr. Speaker. You’ll central front in the war on terror, and the make a fine Member of the House of Rep- resentatives. reason it’s a central front is because the I want to thank all the local officials who enemy that attacked us has made it clear they are here in the statehouse. By the way, if would like to have a safe haven from which you’re a member of the statehouse, a senator to attack us again. I didn’t make this up. I’m or representative, you’re fixing to have a sea just telling you what the enemy has said. In change when Mark wins the governorship. order to make sure this country is secure, You’re going to find somebody that’s going you better have a Commander in Chief who to be a joy to work with, somebody who will listens carefully to what the enemy says and make an agenda, a clear agenda, somebody takes them seriously, which I do. who is making decisions based upon sound By the way, just so you know, when you’re principles. So I look forward on your behalf the Chief Executive Officer, you make a lot to get yourself a new Governor for the State of decisions. And 9/11 affected my decision- of Wisconsin. making a lot. I vowed that the country would I want to thank the grassroots leaders who do everything—we would do everything to are here. First of all, Margaret Farrow is protect the country. I meant what I said. Iraq here, former Lieutenant Governor. Mar- is part of protecting the country—not to re- garet, thank you for coming. I appreciate you visit a lot of history. being here. Good to see you again. I’ve spent But one of the lessons of September the some quality time here in the State of Wis- 11th is when this Nation sees a threat, it must consin. Some of my most fond memories take these threats seriously before they fully campaigning in 2000 and 2004 were in this materialize. That’s a lesson we must learn State. And I had the honor of getting to know and we must not forget. And we saw a threat; Margaret. So, it’s great to see you. Thanks Republicans and Democrats saw a threat in for coming. Thanks for helping the next Gov- Saddam Hussein. After all, he had attacked ernor. He needs your help. his neighbors. He had used weapons of mass I want the thank Rick Graber, who is the destruction. At the very least, he had the ca- chairman of the Republican Party of Wis- pacity to make weapons of mass destruction.

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He had terrorist connections. He was shoot- when he hears all the rhetoric in Washington, ing at American pilots. The decision I made DC, and around the country, he’s wondering was the right decision. America is safer and whether the United States can keep its word. the world is better off without Saddam Hus- And I told him this, I said, ‘‘So long as you’re sein in power. willing to make the tough decisions, so long The enemy believes we’re weak. That’s as you’re willing to represent the people, the what they say. They believe we’ll lose our United States of America will keep our nerve. They believe it’s just a matter of time word.’’ before we pull out of Iraq. The stakes in Iraq It’s in our interest we succeed in Iraq. And are incredibly high. But we’ve got some we’re going to succeed in Iraq. And when things going for us. We’ve got a fantastic we succeed in Iraq, we’ll be a powerful exam- United States military. And I want to thank ple of freedom in the heart of the Middle Mark Green and Brian for supporting these East. men and women. Listen, any time you have You know, you might have noticed recently a man or a woman in uniform in harm’s way, that I went to Graceland—that’s Elvis’s they deserve the full support of the United place—[laughter]—with Prime Minister States Government. And thanks to these Koizumi. I think that’s really interesting. I good Congressmen and this administration, think we need to put that visit in perspective we’ve given them the full support of the about what we’re talking about and the hard United States Government. decisions we’ve made in Washington, DC. We also have 12 million people in Iraq You see, 60 years ago my dad, and I’m who say, ‘‘I want to live in freedom.’’ I know sure some of your relatives, fought the Japa- it seems like an eternity since the elections last December. I guess it’s because we’ve got nese. They were the sworn enemy of the too many TV channels that things seem to United States of America. A lot of people move real quick. But it wasn’t all that long lost their lives in that war, a lot. ago that the people, when given the chance, By the way, as you might recall, they at- went to the polls and said, ‘‘We want to be tacked us at Pearl Harbor. We lost more peo- free. We want to live in a Iraqi-style democ- ple on 9/11 than we did in Pearl Harbor. racy. Just give us a chance.’’ That’s what they And yet 60 years later, after fighting this said. bloody war, I go to Graceland with Prime And there are a group of killers, cold- Minister Koizumi. Something happened. blooded killers, that are trying to stop the And what happened in between that war and advance of this young democracy. That’s today was the Japanese adopted a Japanese- what they’re trying to do. You got to ask your- style democracy. self, what kind of people fear democracy? Democracies yield the peace we want. And Who wouldn’t want people to worship freely? guess what we talked about after we got past What is the mindset where you can’t go to talking about Elvis? [Laughter] We talked the public square and express yourself open- about North Korea. I congratulated Prime ly? It’s the same mindset that wants to attack Minister Koizumi for committing 1,000 us for what we believe in. troops into Iraq to help this young democ- We’re not going to lose in Iraq. As a matter racy. And he did so because he knows what of fact, we will win in Iraq so long as we I know: The best way to defeat the terrorists stay the course. Twelve million people have in the short run is to find them and bring voted. They’ve now got a unity government. them to justice and to prevent them from I went over there and saw the man, Prime having safe haven. The best way to defeat Minister Maliki. You know what I was look- them in the long run is the spread of liberty. ing for? I was looking for, do we have some- Freedom yields the peace we want. Freedom one there who can set an agenda; somebody is able to convert. Liberty has the capacity who can follow through; somebody who is of converting an enemy into an ally, and dedicated to a government of, by, and for someday an American president will be talk- the people. And I found a courageous man ing with a duly elected leader of Iraq and there. And he’s wondering, he’s wondering talking about the peace.

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We’re doing the hard work necessary to tween people like myself and others—me protect ourselves, and we’re doing the hard and Mark and others. And it’s this: We trust work of supporting young democracies. So you with your money. Who best to spend we’re laying the foundation of peace for gen- your money? You? Or the government? erations to come. And I appreciate the vision We believe that you can best spend your and strength and courage of Mark Green on money. Do you realize the tax cuts we passed this tough issue. left $1.1 trillion in the hands of workers and So today I had an interesting announce- small-business owners and entrepreneurs ment to make, and that is that the projected and farmers? deficit of 423 billion is now down to 296 bil- And I made the point today: You have lion—in one year. It now means the deficit clearly shown that you can spend your money is 2.3 percent of GDP, which is about average better than the Federal Government can, over the last 40 years. What’s interesting and therefore, our economy is strong. It’s the about that announcement is that we were envy of the world. One thing we’ve got to able to achieve deficit reduction primarily do in Washington, DC, is to make sure that because the revenues increased in spite of we continue to grow. And one good way to the fact that we cut taxes. do that is to make the tax cuts permanent. You might remember the history of this The other equation in reducing the deficit, administration and working with Mark—he by the way, is to make sure we’re wise about understands that and so does Ryan—that how we spend your money. You need a Gov- we’ve been through a recession and cor- ernor who knows how to set priorities. I ap- porate scandals, a stock market correction, preciate working with the Speaker and the an attack on the United States of America, Leader in the Senate; we’ve set priorities. I two wars—two battles in theaters to defend told you what the priorities are. It’s defend- ourselves—Afghanistan and Iraq, major nat- ing this country and giving our troops what ural disasters, high energy prices. And yet they need to win the war on terror. Beyond this economy of ours is strong, and we intend that, believe it or not, we’ve actually cut dis- to keep it that way. cretionary spending on non-homeland and And one of the reasons it’s strong and one defense spending. of the reasons we recovered is because we We’re doing a good job about watching cut the taxes. We cut the taxes on small-busi- your money. And it’s hard work. Everybody’s ness people. We cut the taxes on workers. got a good idea. Every program sounds fan- We cut the taxes on families raising children. tastic. You’ve got to make sure you’ve got We cut the taxes on dividends. We cut the a good fiscal hawk in your Governor’s seat. taxes on capital gains. You’ve got to have somebody who’s willing I was at Allen-Edmonds today; we acceler- to take on the sacred cow. Somebody’s ask- ated depreciation, which caused him to buy ing, ‘‘Do these programs produce results?’’ more equipment, which makes him an in- Somebody who is willing to look beyond the credibly, productive, competitive company. title of the program to determine whether Cutting the taxes works. It makes this econ- or not they’re delivering result for the peo- omy strong. ple. Mark Green is that kind of guy. He’s You need a Governor who will cut the going to do you a fine job as the Governor taxes in Wisconsin. Mark Green is that Gov- when it comes to watching your money. ernor. This is a little off subject here, but the You know, it’s amazing—the rhetoric in biggest problem we got in the long term is Washington is beyond belief at times. They dealing with these entitlement programs that say in order to solve the deficit, you’ve got we can’t pay for—that’s Medicare and Social to raise taxes. We just proved them wrong. Security and Medicaid. If you’re an older In order to solve the deficit, you cut taxes; person, you’re in good shape. If you’re a you increase economic vitality, which yields younger person who is just working, you’re more taxes. That’s how it works. You need in lousy shape. And I can’t wait to work with a tax cutter as your Governor here. It’s just Congress to solve the Social Security and a philosophical difference, by the way, be- Medicare issue.

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One reason I ran for office is to solve prob- or not children are learning to read and write lems and not pass them on to other Presi- and add and subtract. And guess what hap- dents and other Members of Congress. It’s pens, by the way, in a school system that has time for the United States Congress to stop no accountability? Guess who loses? Gen- playing politics with Social Security and erally inner-city kids or parents who don’t Medicare so a young generation of Ameri- speak English as a first language. cans can look at these entitlement programs See, it’s easy to quit on those kinds of chil- and say, ‘‘I’m not putting my money into a dren. It’s easy just to shuffle them through black hole.’’ And it’s hard work. the grades: say, ‘‘When you’re 10, you’re sup- It’s hard work, but I’m confident we can posed to be here; if you’re 11, you’re sup- get it done. I’m going to keep working it. posed to be in this grade.’’ We blew the whis- That’s what the people expect us to do. And tle on that kind of soft bigotry of low expecta- I appreciate Congressman Ryan. He’s not tions. We said we were going to measure to afraid to take on the tough issues. That’s the determine whether or not the schools are kind of person you want in Washington, succeeding. And if they’re not succeeding, DC—and neither is Mark Green. You see, you’ve got to have somebody in the Gov- we’re going to make sure a child gets extra ernor’s chair who sees a tough issue and says, help early, before it gets too late. ‘‘I’m going to take it on; that’s why I ran.’’ I know there’s a big debate here about You’ve got too many people in politics who school choice, and there should be a debate. say, ‘‘Well, it might affect my poll numbers And it’s an important debate. And my atti- and therefore, I’m going to duck it.’’ I just tude is, when you find a child trapped in a can’t imagine people running for office and school that will not teach and will not change, saying I’m going the duck the tough issue. you have got to give parents other options. You’ve got to have you a Governor who In Mark Green you’ll have a Governor is willing to stand up and make the tough who’s willing to challenge the status quo in calls. And Mark Green is that man. He also education, a Governor who’s willing to insist understands this—I used to tell people when upon high standards and excellence in the I was the Governor of Texas that education classroom, a Governor who will not rest if is to a State what national defense is to the he finds children trapped in mediocrity. He Federal Government. I really believe that a understands that the future of a State de- Governor has got to make education the pends upon the State’s capacity to provide number-one priority of the State. And Mark an excellent education for every child regard- Green is going to do that. less of what he or she looks like. And that’s I worked with him on passing the No Child the Governor Mark Green’s going to be. Left Behind Act, and this is a powerful piece I bet the doctors in this State can’t wait of legislation and necessary reform. Here’s to get yourself a Governor who’s willing to the way it works: It says, first of all, that we support medical liability reform. You can’t believe everybody can learn to read and write have good health care; you cannot have af- and add and subtract, and we refuse to ac- fordable and available health care if you have cept a system that doesn’t hold people to account if they’re not learning to read and write a liability system that has run amok. And I and add and subtract. We said in Wash- know how tough these trial lawyers are in ington, DC, if you’re going to receive Federal some of these States. I took them on in the money, which States do, that we expect you, State of Texas. And you need to have a Gov- the State, to measure to determine whether ernor, for the sake of good medicine, for the we are achieving certain objectives. sake of affordable medicine, for the sake of There was a huge howl, of course, when patients, and for the sake of needed profes- you lay that kind of initiative out there. Peo- sionals, to stand up to the trial bar and pass ple said, ‘‘How dare you measure.’’ And my medical liability reform. And Mark Green is answer is, how dare we not measure. How going to do that. can you expect the school system to be good I think you can tell I’m quite enthusiastic unless you’re willing to test to see whether about him. [Laughter] I do want to conclude

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by saying this about Mark: He and I under- against terrorism and to declare unequivo- stand that government is limited in its capac- cally that there is no justification for the vi- ity to love. I mean government—you can pass cious murder of innocent people. laws, and you can hold people to account. And government is justice, as it should be. Government is fairness. But government Statement on Signing the Coast can’t put hope in a person’s heart or a sense Guard and Maritime Transportation of purpose in a person’s life. That happens Act of 2006 when a loving person puts their arm around July 11, 2006 a lost soul and says, ‘‘I love you, brother,’’ or, ‘‘I love you, sister. What can I do to help?’’ I have today signed into law H.R. 889, the I think the State of Wisconsin will benefit ‘‘Coast Guard and Maritime Transportation mightly from having a person as Governor Act of 2006.’’ The Act authorizes funding for who is willing to rally the faith-based commu- and strengthens the ability of the United nity and community center groups to do their States Coast Guard to perform its missions. duty to help change Wisconsin one heart and The executive branch shall construe the one soul and one conscience at a time. reference to the ‘‘National Intelligence Di- Our society should not fear the involve- rector’’ in section 309 of the Act, amending ment of faith in helping to cure some of the section 70105(c) of title 46, United States intractable social ills. We ought to have lead- Code, to be a reference to the position of ers who welcome those who’ve heard the uni- Director of National Intelligence established versal call to love a neighbor just like you’d by law (50 U.S.C. 403(a)(1)). like to be loved yourself, to make your State The executive branch shall construe sec- as good as it can possibly be. And that Gov- tion 408(c) of the Act, which purports to ernor is going to be Governor Mark Green. make consultation with a legislative agent a Thank you all for coming tonight. God bless. precondition to execution of the law, to call for but not mandate such consultation, as is NOTE: The President spoke at 5:51 p.m. at the consistent with the Constitution’s provisions Hilton Milwaukee City Center. In his remarks, concerning the separate powers of the Con- he referred to Mary Buestrin, national committee- gress to legislate and the President to execute woman, Republican Party of Wisconsin; James R. the laws. Klauser, former secretary of the Wisconsin department of administration; former President Sad- Section 801 of the Act purports to require dam Hussein and Prime Minister Nuri al-Maliki the Secretary of the department in which the of Iraq; and Prime Minister Junichiro Koizumi of Coast Guard is operating to work at the Japan. International Maritime Organization with foreign nations toward specified international objectives. The executive branch shall con- Statement on the Terrorist Attacks strue the provision to be advisory, as is con- on Commuter Trains in Mumbai, sistent with the constitutional commitment India to the President of responsibility for con- July 11, 2006 ducting the foreign relations of the United States, including the exclusive responsibility On behalf of the American people, Laura for formulating the position of the United and I send our deepest condolences to the States in international fora and conducting friends and families of the victims of today’s negotiations with foreign nations. brutal attacks on commuter rail passengers in Mumbai. The United States stands with George W. Bush the people and the Government of India and condemns in the strongest terms these atroc- The White House, ities, which were committed against innocent July 11, 2006. people as they went about their daily lives. Such acts only strengthen the resolve of the NOTE: H.R. 889, approved July 11, was assigned international community to stand united Public Law No. 109–241.

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Proclamation 8035—Parents’ Day, upon citizens, private organizations, and gov- 2006 ernmental bodies at all levels to engage in July 12, 2006 activities and educational efforts that recognize, support, and honor parents, and I en- By the President of the United States courage American sons and daughters to con- of America vey their love, respect, and appreciation to their parents. A Proclamation In Witness Whereof, I have hereunto set As a child’s first teachers, mentors, and my hand this twelfth day of July, in the year role models, parents shape the character of of our Lord two thousand six, and of the those who will help to build the future of Independence of the United States of Amer- our Nation. On Parents’ Day, we pay tribute ica the two hundred and thirty-first. to the hard work and sacrifice of the millions George W. Bush of devoted parents who provide guidance, support, and unconditional love to their chil- [Filed with the Office of the Federal Register, dren. 8:45 a.m., July 14, 2006] Mothers and fathers help kindle imagina- NOTE: This proclamation was released by the Of- tions, inspire a love of learning, nurture the fice of the Press Secretary on July 13, and it was formation of young minds, and give children published in the Federal Register on July 17. the courage and the drive to realize their dreams. By instilling in children the difference between right and wrong, parents Remarks at a Welcoming Ceremony guide their children toward developing into in Stralsund, Germany successful adults and responsible citizens July 13, 2006 who lead lives of purpose. In addition, the commitment of parents to the welfare of Chancellor Angela Merkel of Germany. young people strengthens families and com- Mr. President, Mrs. Bush, Minister Presi- munities throughout our great country. dent, Lord Mayor, ladies and gentlemen, citi- My Administration supports grants and zens of Stralsund, let me say that I am de- programs to promote healthy marriages and lighted to be able to welcome you on behalf responsible fatherhood. The No Child Left of the representatives of the land and also Behind Act is helping us ensure that every of the city. I’m delighted to welcome most child has the opportunity to learn, and recog- warmly the President of the United States nizes that parental involvement is a vital part of America. Mr. President, a very, very warm of the success of schools across America. welcome to you. Federal, State, and local programs, and faith- Mr. President, I’m delighted to be able to based and community groups provide addi- welcome you here in this part of our country tional resources to help parents as they work that I can truly call my political home, the to raise children of conviction and character. Hanseatic City of Stralsund. Stralsund was On this special day, we express our deep part of the League of Hanseatic Cities—that gratitude to parents for their dedication to is to say, it is imbued with a spirit of openness a bright and hopeful future for their children. to the rest of the world. And in 1989, it was We also pray for parents in the military who also one of the many cities where, on Mon- stand up for America, and we resolve that day, demonstrations took place, where peo- their sacrifice will always be honored by a ple went out into the streets to demand free- grateful Nation. dom, to demonstrate for freedom. And we’re Now, Therefore, I, George W. Bush, happy to say in these days it is part of the President of the United States of America, land of Mecklenburg-Vorpommern and also by virtue of the authority vested in me by part of the Federal Republic of Germany. the Constitution and laws of the United And I think that this is a very good oppor- States and consistent with Public Law 103– tunity, indeed, to say a word of thanks. Thank 362, as amended, do hereby proclaim Sun- you for the contribution, for the support that day, July 23, 2006, as Parents’ Day. I call we have enjoyed throughout from the people

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of the United States of America, from the willing to make hard decisions and eager to American Government, to help us along the build strong partnerships. And like many oth- way towards German unification. I think we ers in the international community, I respect owe you a big debt of gratitude for being her judgment and I value her opinion. able to finally live within one country in It’s such an honor to be in her constitu- peace and freedom; one country—Germany. ency. When I met with her in the Oval Of- I think one can safely say that ever since fice, she said, ‘‘When you come to Germany, we were able to achieve German unity, a lot you need to come to one of the best parts has happened and indeed, Stralsund is a case of Germany.’’ She didn’t predict the weather. in point. If you look at the fact that when [Laughter] But I want to thank the Mayor the GDR finally collapsed, you had about 600 for delivering such a beautiful day. And she monuments here of historic importance in forgot to tell me I was going to get some the city itself that were slowly decaying, that herring, and I thank you for that gift. were slowly in ruins, and part of them have I bring a message from the American peo- been restored over time. But there are still ple: We’re honored to call the German peo- quite a lot of problems that remain to be ple friends and allies. We share common val- solved. One of them, obviously, is the fairly ues and common interests. We want to work high unemployment in this particular part of together to keep the peace. We want to work the country. They urgently need economic together to promote freedom. There’s so progress, an economic upturn. And this is much that we can do, working together, and why I am also delighted to have you here, that’s part of my visit today, is to pledge to to show you here in my constituency what you and the Chancellor: America and Ger- it means when people try to take their own many stand side by side. fate, their own future into their own hands Thank you for your warm welcome. May and try to turn it to something positive—they God bless you all. Thank you very much. are willing to work for the future of the city, for the future of this region. NOTE: The President spoke at approximately 9:55 And I think it also clearly illustrates what a.m. in Stralsund Market Square. In his remarks, he referred to Mayor Harald Lastovka of we can do together in order to confront the Stralsund, Germany; and Minister President international dangers, the threats at the inter- Harald Ringstorff of Mecklenburg-Vorpommern. national level that are common to us all, and Chancellor Merkel spoke in German, and her re- that we can do in order to, together, work marks were translated by an interpreter. for peace and freedom for our two countries. Yet again, a very, very warm welcome to you, Mr. President. The President’s News Conference President Bush. Thank you all. Thank With Chancellor Angela Merkel of you, Chancellor Merkel. Thank you all for Germany in Stralsund coming. Laura and I feel welcome here in July 13, 2006 Stralsund. To the Mayor and Minister Presi- dent and the people of this beautiful town, Chancellor Merkel. Ladies and gentle- we say, guten morgen. men, I am delighted to be able to welcome For decades, the German people were the President of the United States here to separated by an ugly wall. Here in the East, Stralsund yet again. We had a lengthy con- millions of you lived in darkness and tyranny. versation just now in the Office of the Mayor. Today, your nation is whole again. The Ger- We felt very much at home here in this beau- man people are at the center of Europe that tiful city hall. We talked about all of the dif- is united and free and peaceful. ferent issues on the global agenda. You’ve given Germany a fine Chancellor We shall, later on, see a little bit more of in Angela Merkel, who I’m proud to call the countryside here, of the city itself. I am friend. The American people and the Ger- really pleased to be able to show to the Presi- man people see the same qualities of char- dent of the United States how matters have acter in your nation’s leader. We see a bold developed here, with some problems still ex- vision and a humble heart. We see that she’s isting but also what sort of problems we’ve

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coped with quite successfully. And it’s such be strengthened and this Government being a great thing to have this lovely weather for able to pursue its policies in a sensible and our visits. secure environment. Just now in our talks, we talked at great We also addressed matters of trade, global length about international issues. Unfortu- trade. Here we—and I’m saying this from nately, there are quite a lot of problems that a German perspective—have a common in- we need to deal with and for whose solution terest in seeing this world round be a suc- we feel responsible. The first and foremost cessful one, this world trade round. But that on top of the agenda is certainly Iran. The means there has to be movement on all sides. international community actually submitted And we’re expecting a reasonable, sensible a very substantial, very fundamental offer to offer by the G–20, because this is where Iran, starting from the firm view that Iran movement is necessary. Europe and others should not be in possession of a nuclear have submitted far-reaching proposals, and weapon, but that, on the other hand, Iran we would like to explore every possibility of should have—should know good develop- these negotiations, but that means, as I said, ment. So far we have not received any sort movement on all sides. And here I see that of reaction from the Iranian leadership as to the G–20 has to deliver. how their position is on this offer. We also addressed those issues that will And this is why it was only consistent that be on the agenda at the G–8 in St. Peters- yesterday the foreign ministers decided yet burg. Here, first and foremost, energy policy, again to show clearly, also through a resolu- secure energy supply, was at the top of the tion in the U.N. Security Council, that should agenda. We addressed African issues, Darfur Iran not in any way reply to this offer and and the Congo mission. We as Germans, as accept this offer, we unfortunately have to you know, have taken out a commitment as embark on a new course. The door has not regards Congo. We also, however, see the been closed, but Iran must know that those situation in Darfur as a threatening one. who have submitted this offer are willing— We found that there is a lot that we agree and this is the success of yesterday’s meet- on, as regards our common responsibilities, ing—Russia, China, the E–3, and the United responsibilities that we see for the two of us States of America—all of them together are the world over. And I, for one, think that willing to act in concert and to show this as regards, for example, Iran, this responsi- clearly through their action in the Security bility ought to be shouldered by more and Council. more countries—that goes for Russia; that We also addressed the very disturbing situ- goes for China. It will only be if we act in ation in the Middle East, and it fills us with concert that we will be able to vanquish the concern. And we have also stated clearly that tyrants, remove dictatorships, and contain everything needs to be done in order to come those who sponsor terrorism. And Germany back to a peaceful resolution. We need to would like to give its contribution to that. remind all of us again how this escalation President Bush. Chancellor, thank you started, with the kidnaping of a soldier, very much. Thanks for the invitation. This through rockets—for the firing of missiles is a beautiful part of the world, and Laura against Israeli territory. And we can only urge and I are so honored to come to your con- all parties, appeal to all parties to stop, to stituency and meet some of the friendly peo- cease violence, and to also release the kid- ple who live here. I remember you coming naped soldier and to stop this firing of mis- to the Oval Office, and you said, ‘‘If you are siles at Israeli territory. coming to Germany, this is the part of Ger- We would like to appeal to the powers in many I want you to see.’’ And now I can the region to see to it that further escalation see why you suggested it. I’m looking forward is warded off and that, first and foremost, to the feast you’re going to have tonight. I the root causes of this conflict are removed. understand I may have the honor of slicing And only in this way will a negotiating proc- the pig. ess become possible again. We have every We had a good discussion—it’s more than interest in seeing the Lebanese Government a discussion; it’s really a strategy session, is

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the way I’d like to describe it. We talked peace advances, it’s in the terrorists’ interests about a lot of subjects. We talked about the in some cases to stop it. And that’s what’s Middle East and Iran, and I briefed the happening. Chancellor on North Korea. We talked about We were headed toward the roadmap; Iraq and Afghanistan as well. things looked positive. And terrorists stepped But when we talked about the issues, it’s up and kidnaped a soldier, fired rockets into important for you to understand, we’re really Israel. Now we’ve got two more kidnapings trying to figure out how to work together to up north. Hizballah doesn’t want there to be solve problems. And I appreciate—appre- peace. The militant arm of Hamas doesn’t ciate the Chancellor’s judgment a lot. It’s an want there to be peace. And those of us who interesting conversation, you know, when do want peace will continue to work together you toss out what may seem to be a problem to encourage peace. that’s insoluble, and all of a sudden, two peo- We talked about North Korea. I assured ple start thinking about how to solve it, solve the Chancellor that I’m committed to the six- the problem. And that’s what we’re doing. party talks and that the five of us in the six- You know, on the Iranian issue, for exam- party talks will work to convince North Korea ple, the last time that we were together, we to come back to the table. I’m hopeful that talked—spent a lot of time on Iran, and the we can get some U.N. action on North Chancellor was wondering whether or not Korea. the United States would ever come to the We did talk about Doha, the trade round, table to negotiate with the Iranians. You and it’s—look, these trade rounds are dif- made that pretty clear to me that you thought ficult to negotiate with; we’ve all got our own it was something—an option we ought to interests. But the good news is, we do share consider, which I did. And I made it clear a common desire to open up markets. Ger- to the Iranians that if they were to do what many is a great exporter. It’s in Germany’s they said they would do, which is to stop en- interest that tariffs be reduced around the richment in a verifiable fashion, we’re more world. It’s in our interests that tariffs be re- than pleased to come back to the table. duced around the world. And I committed There’s no question that this issue can be to what I told the world back last September: solved diplomatically, and there’s no question We will reduce agricultural subsidies. But all that it can be solved diplomatically with Ger- we want is fair treatment when it comes to many and the United States strategizing as market access. how to solve it. And I want to thank the I’m optimistic we can still get something Chancellor’s leadership on this issue. It’s done on the Doha round. It’s going to take really important for Europe to speak with work, but G–8 is a good place for us to con- one common voice. And it’s important for tinue the dialog, and we will. Angela and myself to work with Vladimir And I guess that’s about all—we discussed Putin, which we will do at the G–8, to con- a lot of things, in other words. And thank tinue to encourage him to join us in saying you for having me. I’m looking forward to to the Iranians loud and clear, ‘‘We’re not that pig tonight. [Laughter] kidding; it’s a serious issue. The world is I’ll be glad to answer a couple of questions. united in insisting that you not have a nuclear Do you want to start her off? weapons program.’’ We talked about the Israeli-Palestinian Iran and the Israeli issues with Hizballah and our Q. Chancellor, you spoke about charting common desire to work together to help a new course as regards a response to the bring peace to that troubled region. My atti- Iranian conflict. What new course will that tude is this: There are a group of terrorists be? You talked about the results of the for- who want to stop the advance of peace. And eign ministers’ meeting where they will ap- those of us who are peace-loving must work peal to the Security Council. What sort of together to help the agents of peace—Israel, action will there be? Again, just a resolution President Abbas, and others—to achieve that only demands certain things, or is the their objective. You got to understand, when objective a resolution that will then actually

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threaten sanctions of a specific nature? This macy. And I assured the Chancellor that the question is also addressed to the President. United States will continue to work to make Chancellor Merkel. Well, essentially sure the process is steady as it moves for- what we’re talking about here is not a totally ward. new process; it’s just another phase. We have The key first step is—common goal, which waited patiently whether Iran will examine is no nuclear weapon or program—and this offer and in which way it will react. So united message to the Iranians. I truly think far we have not had any sort of reliable reac- they’re trying to wait us out. They think it’s tion. And for us, the precondition for talks a matter of time before people lose their has always been suspension of the enrich- nerve or a matter of time before different ment activities, and a precondition for talks interests are able to influence the process. has always been, well, we will then, under And I think they’re going to be sorely mis- the circumstances, not react with sanctions. taken. I think they’re going to be dis- But through this common action, we are now appointed that this coalition is a lot firmer making clear, because we are not receiving than they think. a reply, that there will be a concerted action It is in our interests to make sure they and that there will be specific steps. And don’t have a weapon. It would be dangerous we’re defining what steps these will be if Iran if the Iranians had a nuclear weapon. And continues to let us wait with its response. that’s a recognizable fact now. So I appre- So we wanted to demonstrate yet again ciate the Chancellor’s position on this. that the international community is willing Yes, Terry. to show resolve to pursue this strategy further in every direction. Iran has received a Russia proposal that I think is a very substantive one, Q. Madam Chancellor, Mr. President— a very good one, one that is good for the Terry Hunt with the AP. Looking ahead to development of its own country, of its own St. Petersburg, I’d like to ask you, do you interests—is in its own interests. But if Iran think that Russia is honoring human rights should not reply, if they think they can pre- and democratic freedoms and has a respon- varicate in the hope of the international com- sible approach to energy security? munity being split, then this proves them And, Mr. President, were you surprised by wrong. And this is why I am so happy about President Putin replying to Vice President the conclusion of that meeting of the foreign Cheney’s criticism, saying that it was an ‘‘un- ministers. successful hunting shot?’’ President Bush. This notion that the Ira- President Bush. Did I think it was a clev- nians must understand that they can’t wait er response? It was pretty clever. Actually, us out and can’t hope to split a coalition— quite humorous—not to dis my friend the and so the first step is to go to the United Vice President. I don’t know, do you want Nations and speak with as common a voice to start with this? I’d be glad to—[laughter]. as possible. No, I think our job is to continually remind Your question really is, how fast should the Russia that if she wants to do—have good process move along? And my attitude is, the relations, that she ought to share common answer to that is, it should move as fast as values with us. We share common values— necessary to make it effective, which is a non- free press is a common value we share. And answer, admittedly. But the truth of the mat- I’ve expressed my opinion to President Putin. ter is, diplomacy takes a lot of work, and You might remember my visit with him in there are different interests involved here. Slovakia where I was quite pointed in my We do share a common goal of no nuclear concerns about whether or not there is a free weapon and no program. And, by the way, and vibrant press in Russia. We share con- we’ve already sanctioned Iran, so we’ve got cerns about the ability for people to go to a different position than others. It’s easy for the town square and express their opinions me to espouse sanctions, since it’s already and whether or not dissent is tolerated, a fait accompli. But we understand other na- whether or not there’s active political opposi- tions have got—there’s a pace to this diplo- tion.

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And so I will continue to carry that mes- As to democracy and human rights, during sage. My own view of dealing with President my visit to Russia, I met with a number of Putin, though, is that nobody really likes to representatives of nongovernmental organi- be lectured a lot, and if you want to be an zations. We discussed what is desirable, what effective person, what you don’t go is scold ought to be there as regards Russia’s further the person publicly all the time; that you re- development, and what needs to be ad- mind him where we may have a difference dressed, time and again. And let me tell you of opinion, but you do so in a respectful way, that I talked to the President about these so you can then sit down and have a construc- issues. tive dialog. I think also we ought to have an open, con- And that’s exactly how I’m going to con- fidential dialog. We should not, sort of, speak tinue my relations with President Putin. I’ll loudly and in public about certain issues; that be firm about my belief in certain democratic we have different ideas about how a pluralist institutions; I’ll be firm in my belief about society, a democratic society ought to work; the need for there to be an active civil soci- that there ought to be a strong opposition ety, and NGOs should be allowed to function is certainly one of the realities of life. There in Russia without intimidation. But I’m also are differences of opinion between Russia going to be respectful of the leader of an and the European Union. We would wish for important country. And I may not tell you Russia to embark on a path that leads to a exactly what I talked to him about in private, lively and very pluralistic political landscape, and I would hope that he wouldn’t tell you that they enter into a dialog with their civil what he talks to me about in private. society, which is at yet not there, for many But yes, we’ve got issues. Listen, we’ve got reasons. common problems that we need to work to- But we would like to share with them also gether to solve—North Korea and Iran are the experience that we’ve made with democ- two. And we’ve also got—I hope he con- racy, that pluralism in a democracy, last but tinues to understand that it’s in his country’s not least, actually enhances stability in a interest to implement the values that Ger- country. And that is an experience that we many and Russia—Germany and the United have made, and that is a very strong force States share. which drives reform processes forward. For Chancellor Merkel. Well, first, as to the example, we’ve seen that in German unity. issue of energy security, I can safely say that, It’s sometimes complicated to bring those looking at Germany over the past few dec- decisionmaking processes forward in a de- ades, Russia has always proved to be a reli- mocracy, but then you receive the necessary able supplier of energy. They have always legitimacy. And that is the experience that abided by the treaties that we signed. But informs us in our talks. we would wish—and I’ve addressed this with the Russian President—that they actually Situation in the Middle East bring the energy charter to its completion, that is to say, commit themselves to it, be- Q. A question addressed to you both. You cause then we would have a greater degree talked about the Middle East, and what is of certainty and security that we understand your assessment of the military action of our common commitments on this. Israel in Lebanon? The French Foreign Min- As regards—a strategic link between Rus- ister already said it is disproportionate. Does sia and Europe, obviously, is of tremendous that give you cause for Europe or the United importance. It’s important because we need States to intervene? energy supplies from Russia. And this is why And apart from the pig, Mr. President, we shall work towards Russia accepting that what sort of insights have you been able to charter, that energy charter, so that we get gain as regards East Germany? [Inaudible] a legitimate charter that is also based on con- Chancellor Merkel. Neither have I, but tracts. But again, it has to be said that Russia apparently a camera team was there when has always been a reliable supplier. it was shot. So apparently it is already there,

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physically. [Laughter] I hope it’s actually al- Hizballah has got an active presence in Syria. ready roasting; otherwise, we won’t be able The truth of the matter is, if we really want to eat it tonight. there to be—the situation to settle down, the Well, as to the violence in the Middle East, soldiers need to be returned, and President particularly as regards Lebanon, I think that Asad needs to show some leadership toward one needs to be very careful to make a clear peace. distinction between the root causes and the To answer your question about involve- consequences of something. So we started ment, we will be involved diplomatically and here from a case of kidnaping of a soldier, are involved diplomatically. and one of the other root causes, also, is the Steve [Steve Holland, Reuters]. activity of Hizballah. And it’s most important for the Israeli Government to be strength- Iran ened, but it is also clearly shown that these Q. Thank you, sir. Just to follow up—— incursions, such as the kidnaping of soldiers, President Bush. Follow up on? is not acceptable. Q. On both of these. Does it concern you And the parties to that conflict obviously that the Beirut Airport has been bombed? have to use proportionate means, but I am And do you see a risk of triggering a wider not at all for, sort of, blurring the lines be- war? tween the root causes and the consequences And on Iran, they’ve so far refused to re- of an action. There has to be a good reaction spond. Is it now past the deadline, or do they now, not from the Israeli Government but still have more time to respond? from those who started these attacks in the President Bush. I thought you were going first place. to ask me about the pig. President Bush. ——to help calm the sit- Q. I’m curious about that too. [Laughter] uation, we’ve got diplomats in the region. President Bush. The pig? I’ll tell you to- Secretary of State Rice, who is here, is on morrow after I eat it. the phone talking to her counterparts. I’ll be The Iranian issue is—will be taken to the making calls. U.N. Security Council. We said that we I gave you my initial impression earlier, have—to the Iranians, we said, ‘‘Here’s your and that is that it’s a sad situation where— chance to move forward, and we’d like a re- when there is a very good chance for there sponse in a reasonable period of time.’’ And to be a two-state solution enacted—that is we meant what we said. One of the important two states living side by side in peace—it’s things about moving toward the Security really sad where people are willing to take Council, it shows that when we say some- innocent life in order to stop that progress. thing, we mean it. In order for—to help solve As a matter of fact, it’s pathetic. these problems, you just can’t say things and And having said that, Israel has a right to not mean it. And so when we spoke, we said, defend herself. Every nation must defend reasonable period of time—weeks, not herself against terrorist attacks and the killing months—that’s what we explained to the Ira- of innocent life. It’s a necessary part of the nians. They evidently didn’t believe us. And 21st century. so now we’re going to go to the Security Secondly, we—whatever Israel does, Council, and we’re united in doing that. though, should not weaken the Siniora Gov- Q. Their deadline has passed—— ernment in Lebanon. We’re concerned about President Bush. Their deadline passed, the fragile democracy in Lebanon. We’ve right. That’s why we’re going to the U.N. Se- been working very hard through the United curity Council. Nations and with partners to strengthen the Q. ——have time? democracy in Lebanon. The Lebanese peo- President Bush. Oh, they’ve got plenty of ple have democratic aspirations, which is time. I mean, the U.N. Security Council— being undermined by the actions and activi- they’ve got time to react. They’ve got time ties of Hizballah. to make a decision. By the way, it’s their Thirdly, Syria needs to be held to account. choice. We’ve made our choice. It’s the Ira- Syria is housing the militant wing of Hamas. nian choice. And as Angela mentioned, there

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was an offer put on the table, a reasonable So the concern is that any activities by offer, for them to make the choice as to the Israel to protect herself will weaken that way forward. Government. And we have made that—or And our choice is, look, we want to have topple that Government—and we’ve made it relations with you, but you’re not going to clear in our discussions. have a weapon or the capacity to make a Having said all that, people need to protect weapon. It would be incredibly dangerous if themselves. There are terrorists who will we—5 years from now, Iran shows up with blow up innocent people in order to achieve a nuclear weapon and threatens people in tactical objectives. In this case, the objective the neighborhood, and they’re going to say, is to stop the advance of peace—which is a ‘‘Where were you? What were you doing dur- remarkable statement, isn’t it—willing to kill ing that period of time?’’ And that’s what to stop peace. we’re working on. We have a good chance to get a two-state And so time—when we said, weeks, not solution, two democracies living side by side months, we meant it. And now we’re heading in peace. It is a clear and achievable vision. to the U.N. Security Council. They can show There is a way forward called the roadmap— up any time and say, ‘‘Wait a minute; now to achieve that vision. What will prevent that we’d like to go back and negotiate, now— vision from being achieved is—are terrorist take a look at the interests.’’ We’re not pre- activities, and that’s what you’re seeing taking cluding any further negotiations with the Ira- place. nians. Thank you all. In order for us to come to the table, how- Chancellor Merkel. Thank you. ever, what they must do is verifiably show that they’re not enriching, like they said they NOTE: The President’s news conference began at would do earlier. This is not a—this is not 12:34 p.m. in the Town Hall. In his remarks, he a new statement by them. They agreed to referred to President Vladimir Putin of Russia; this in Paris. All we’re asking them to do is President Mahmoud Abbas (Abu Mazen) of the Palestinian Authority; Prime Minister Fuad to honor what they said they would do in Siniora of Lebanon; and President Bashar al-Asad the past in a verifiable fashion. of Syria. A reporter referred to Minister of For- The rest of your four-part question? eign Affairs Philippe Douste-Blazy of France. Chancellor Merkel spoke in German, and her re- Situation in the Middle East marks were translated by an interpreter. Q. Sorry about that, sir. President Bush. That’s okay, it just—it’s Remarks in a Discussion With Civic a bad habit. Leaders in St. Petersburg, Russia Q. Does the Beirut—the attack on the July 14, 2006 Beirut Airport, does that concern you, and are you concerned about triggering a wider Ambassador, thank you for setting up this Middle East war? meeting. I’ve just had a really interesting President Bush. As I mentioned, my big- meeting. I’ve been meeting with young, vi- gest concern is whether or not actions taken brant Russian activists who, first, love their will weaken the Siniora Government. De- country; secondly, care deeply about the mocracy in Lebanon is an important part of form of government of the country; and laying a foundation for peace in that region. third, care deeply about the human condition We have worked really hard to get Syria out in their country. of Lebanon—U.N. Resolution 1559 and its These folks come from a variety of dif- followup Resolution 1680 were manifesta- ferent NGOs and civic groups, representing tions of the work of the international commu- a variety of issues—all bound together to be nity to get Syria out of Lebanon. We’ve al- involved in their governments, in their coun- ways felt that a democracy in Lebanon is im- tries, so that it’s the best it can possibly be. portant for the Lebanese people, and it’s im- I spent a lot of time listening to their con- portant for the region. cerns. I assured them that the United States

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of America cares about the form of govern- received a law degree from Yale, served in ment in Russia, that we believe in the uni- the Navy during World War II, and for dec- versal values embedded in democracy. We ades he represented western Michigan as a believe in rule of law; we believe in human Republican Congressman from Grand Rap- rights; we believe everybody has a right to ids. be treated equally. Then came his appointment with history. I explained to them that our own govern- He assumed the Presidency at a perilous moment and our country took a while to evolve, ment for our country. A President had re- but nevertheless, it’s important to be aiming signed; the United States was involved in a toward a better tomorrow. cold war; the economy was sputtering; and I hope my visit here was encouraging to America’s confidence was deeply shaken. them; it certainly was instructional for me. Few leaders have ever faced such chal- I explained to them my strategy of dealing lenges upon taking office. Yet President Ford with Vladimir Putin, who is my friend. Some met them with steadfastness and courage. asked me to deliver messages, which I’d be His leadership helped heal a wounded na- more than happy to do. I explained to them tion. that it’s in the U.S. interests to remain en- Since leaving office, President Ford has set gaged with Russia—Russia is a great country a high standard for grace and character. He with a fantastic future—and that the foreign has never forgotten his roots or lost sight of policy of my administration will be to work the things that matter—including his deep with Russia to solve common problems and love for his wife and partner, Betty. at the same time be in a position where we Laura and I join all Americans in wishing can have a frank exchange of ideas and phi- President Ford a happy birthday. losophies and views. I told the young leaders here that this has been a very enriching experience for me. I shared the thought—shared the idea that I’m Digest of Other the father of 24-year-old twin daughters. I’m White House Announcements looking at some folks here at the table who are their age; I’m impressed by their courage and their idealism and their desire to make The following list includes the President’s public their societies a better place. schedule and other items of general interest an- So I want to thank you all for your visit. nounced by the Office of the Press Secretary and Thank you for your frank exchanges. I will not included elsewhere in this issue. you all the very best, and I ask for God’s blessings on the people of Russia. July 8 In the morning, the President had an intel- NOTE: The President spoke at 4:06 p.m. at the Counsel General’s residence. In his remarks, he ligence briefing. referred to U.S. Ambassador to Russia William July 10 J. Burns; and President Vladimir Putin of Russia. A tape was not available for verification of the In the morning, the President had an intel- content of these remarks. ligence briefing. In the evening, in the State Dining Room and the East Room, the President and Mrs. Statement Honoring Former Bush hosted a social dinner and entertain- President Gerald Ford’s Birthday ment in honor of the Special Olympics. July 14, 2006 The President announced his designation of the following individuals as members of President Gerald Ford’s story is a true a Presidential delegation to Abuja, Nigeria, American story. It is the tale of a son of the to attend the Leon H. Sullivan Summit on Midwest who achieved great things through July 19: Alphonso Jackson (head of delega- hard work, dedication, courage, and humility. tion); John Campbell; John A. Simon; Her- President Ford played football at Michigan, bert H. Lusk II; and Anita Smith.

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The President announced his designation The President announced his appointment of the following individuals as members of of Peter W. Tredick as a member of the Pres- a Presidential delegation to Ulaanbaatar, idential Emergency Board No. 239. Mongolia, to attend the 800th anniversary of The President announced his intention to the Great Mongolian State from July 12–13: designate C.W. Bill Young as the President’s Mike Johanns (head of delegation); and Rob- Personal Representative at the Farnborough ert M. Peck. International Aerospace and Defense Exhi- The President announced his designation bition and Air Show from July 17–23. of the following individuals as members of The President announced his appointment a Presidential delegation to Turkey to attend of Kevin Sullivan as Assistant to the President the opening of the Baku-Tbilisi-Ceyhan for Communications. Pipeline on July 13: Jeffrey Clay Sell (head of delegation); and Ross Wilson. July 12 In the morning, the President had an intel- July 11 ligence briefing. Later, he and Mrs. Bush traveled to Heiligendamm, Germany, arriv- In the morning, the President had break- ing in the evening. fast with Republican congressional leaders. Later, he had an intelligence briefing. Then, July 13 in the Oval Office, he and Mrs. Bush met In the morning, the President had an intel- with President Alejandro Toledo of Peru and ligence briefing. He and Mrs. Bush then trav- his wife, Eliane Karp de Toledo. eled to Stralsund, Germany. Later, in the Later in the morning, in the Oval Office, Kollegien Room at the Town Hall, they par- the President participated in a telephone ticipated in a guestbook signing ceremony conversation with crew members of the and a greeting with local community rep- Space Shuttle Discovery. He then partici- resentatives. pated in a photo opportunity with members In the afternoon, in the of the National Council on the Arts. Achtmannskammer Room of the Town Hall, In the afternoon, the President traveled to the President had a working lunch with Port Washington, WI. Later, he traveled to Chancellor Angela Merkel of Germany. Milwaukee, WI. Later, he and Mrs. Bush toured St. Nikolai In the evening, the President returned to Church. Washington, DC. In the evening, the President and Mrs. The President announced his intention to Bush traveled to Trinwillershagen, Germany, nominate Cindy Lou Courville to be U.S. where, at the Zu den Linden restaurant, they Representative to the African Union with the attended a social dinner and entertainment rank of Ambassador. hosted by Chancellor Merkel. They then re- The President announced his intention to turned to Heiligendamm, Germany. nominate Philip S. Goldberg to be Ambas- The White House announced that the sador to Bolivia. President will host Prime Minister Nuri al- The President announced his intention to Maliki of Iraq at the White House on July nominate Henry M. Paulson, Jr., to be U.S. 25. Governor of the following organizations: the The President announced his intention to International Monetary Fund; the Inter- nominate Richard W. Graber to be Ambas- national Bank for Reconstruction and Devel- sador to the Czech Republic. opment; the Inter-American Development The President announced his intention to Bank; the African Development Fund; the nominate Christopher A. Padilla to be Assist- Asian Development Fund; and the European ant Secretary of Commerce (Export Admin- Bank for Reconstruction and Development. istration). The President announced his intention to The President announced his intention to nominate John C. Rood to be Assistant Sec- nominate Calvin L. Scovel to be Inspector retary of State for International Security and General at the Department of Transpor- Non-Proliferation. tation.

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The President declared a major disaster in Bank for Reconstruction and Development Virginia and ordered Federal aid to supple- for a term of 5 years; U.S. Governor of the ment Commonwealth and local recovery ef- Inter-American Development Bank for a forts in the area struck by severe storms, tor- term of 5 years; U.S. Governor of the African nadoes, and flooding from June 23 to July Development Bank for a term of 5 years; 6. U.S. Governor of the Asian Development Bank; U.S. Governor of the African Develop- July 14 ment Fund; U.S. Governor of the European In the morning, the President had an intel- Bank for Reconstruction and Development, ligence briefing. Later, he and Mrs. Bush vice John W. Snow, resigned. traveled to St. Petersburg, Russia. While en route aboard Air Force One, the President John C. Rood, had separate telephone conversations with of Arizona, to be an Assistant Secretary of King Abdallah II of Jordan, President Mo- State (International Security and Non-Pro- hammed Hosni Mubarak of Egypt, and liferation), vice Stephen Geoffrey Prime Minister Fuad Siniora of Lebanon to Rademaker, resigned. discuss the situation in the Middle East. Upon arrival, he and Mrs. Bush participated in a wreath-laying ceremony at the Monu- Submitted July 13 ment to the Heroic Defenders of Leningrad. In the afternoon, the President and Mrs. Cindy Lou Courville, Bush traveled to Strelna, Russia. of Virginia, to be Representative of the In the evening, in the Italian Guest Room United States of America to the African at Konstantinovosky Palace, the President Union, with the rank and status of Ambas- and Mrs. Bush attended a social dinner sador Extraordinary and Plenipotentiary. hosted by President Vladimir Putin of Russia and his wife, Lyudmila. Nora Barry Fischer, of Pennsylvania, to be U.S. District Judge for the Western District of Pennsylvania, vice Robert J. Cindrich, resigned. Nominations Submitted to the Senate Richard W. Graber, of Wisconsin, to be Ambassador Extraor- The following list does not include promotions of dinary and Plenipotentiary of the United members of the Uniformed Services, nominations States of America to the Czech Republic. to the Service Academies, or nominations of For- eign Service officers. Sara Elizabeth Lioi, of Ohio, to be U.S. District Judge for the Submitted July 12 Northern District of Ohio, vice Lesley Brooks Wells, retired. Philip S. Goldberg, of Massachusetts, a career member of the Christopher A. Padilla, Senior Foreign Service, class of Counselor, of the District of Columbia, to be an Assist- to be Ambassador Extraordinary and Pleni- ant Secretary of Commerce, vice Peter potentiary of the United States of America Lichtenbaum. to the Republic of Bolivia.

Henry M. Paulson, Jr., Calvin L. Scovel, of New York, to be U.S. Governor of the of Virginia, to be Inspector General, Depart- International Monetary Fund for a term of ment of Transportation, vice Kenneth M. 5 years; U.S. Governor of the International Mead, resigned.

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Checklist Statement by the Press Secretary: Con- of White House Press Releases demnation of Hizballah Kidnapping of Two Israeli Soldiers Released July 13 The following list contains releases of the Office of the Press Secretary that are neither printed as Transcript of a press briefing by Secretary items nor covered by entries in the Digest of of State Condoleezza Rice and National Se- Other White House Announcements. curity Adviser Stephen J. Hadley Statement by the Press Secretary: President Bush To Welcome Prime Minister of Iraq Released July 10 to the White House Transcript of a press briefing by Press Sec- retary Tony Snow Released July 14 Transcript of a press briefing by National Se- Transcript of a press gaggle by Press Sec- curity Adviser Stephen J. Hadley on the retary Tony Snow President’s upcoming visit to Russia and Ger- Statement by the Press Secretary on disaster many assistance to Virginia Statement by the Press Secretary announcing that the President signed H.R. 4912 Fact sheet: Commission for Assistance to a Free Cuba Report to the President Acts Approved by the President Released July 11 Transcript of a press gaggle by Press Sec- Approved July 10 retary Tony Snow H.R. 4912 / Public Law 109–240 Fact sheet: Strong Economic Growth and Rural Health Care Capital Access Act of Fiscal Discipline Help Reduce Budget Def- 2006 icit Approved July 11 Released July 12 H.R. 889 / Public Law 109–241 Transcript of a press gaggle by Press Sec- Coast Guard and Maritime Transportation retary Tony Snow Act of 2006

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