[Public Papers of the Presidents of the United States: George W. Bush (2002, Book I)]
[January 10, 2002]
[Pages 42-44]
[From the U.S. Government Publishing Office www.gpo.gov]
Remarks Following a Meeting With the Economic Team and an Exchange With
Reporters
January 10, 2002
Pension Reform
The President. Thank you all for coming. I met with my economic
security team last week to talk about ways to create jobs. We're meeting
again with the components of the team to talk about one part of economic
security, and that's pension security.
One of the things we're deeply concerned about is that there have
been a wave of bankruptcies that have caused many workers to lose their
pensions, and that's deeply troubling to me. And so I've asked the
Secretary of Treasury, Secretary of
Labor, and Secretary of Commerce to convene a working group to analyze pensions,
rules and regulations, to look into the effects of the current law on
hard-working Americans, and to come up with recommendations how to
reform the system to make sure that people are not exposed to losing
their life savings as a result of a bankruptcy, for example.
As well, Secretary of Treasury, along
with the SEC, the Fed, and the CFTC, are going to convene a working
group to analyze corporate disclosure rules and regulations. In light of
the most recent bankruptcy, Enron, there needs to be a full review of
disclosure rules to make sure that the American stockholder or any
stockholder is protected.
And so, I think this is an important part of, obviously, other
investigations that are ongoing. The Justice Department announced and
informed us late yesterday that they're in the process of investigating
aspects of the Enron bankruptcy. The administration is deeply concerned
about its effects on the economy. We're also deeply concerned about its
effects on the lives of our citizenry.
I'll be glad to answer a few questions.
Enron Corporation
Q. When was the last time you talked to either Mr. Lay or any other
Enron official about the--about anything? And did discussions involve
the financial problems of the company?
The President. I have never discussed with Mr. Lay the financial problems of the company. The last time that
I saw Mr. Lay was at my mother's fundraising event to--for literacy, in
Houston. That would have been last spring. I do know that Mr. Lay came
to the White House in--early in my administration along with, I think,
20 other business leaders to discuss the state of the economy. It was
just kind of a general discussion. I have not met with him personally.
Q. [Inaudible]--to inoculate and your administration politically
from the fallout?
The President. Well, first of all, Ken Lay is a supporter. And I got to know Ken Lay when he was the
head of the--what they call the Governor's Business Council in Texas. He
was a supporter of Ann Richards in my run in
1994. And she had named him the head of the Governor's Business Council,
and I decided to leave him in place, just for the sake of continuity.
And that's when I first got to know Ken and worked with Ken, and he
supported my candidacy.
This is--what anybody's going to find, if--is that this
administration will fully investigate issues such as the Enron
bankruptcy to make sure we can learn from the past and make sure that
workers are protected.
Iran and Afghanistan
Q. Mr. President, does it appear that Iran is flexing its muscles in
western Afghanistan, and does that threaten the U.S. war on terrorism in
that region?
[[Page 43]]
The President. Well, first of all, Iran must be a contributor in the
war against terror; that our Nation and our fight against terror will
uphold the doctrine, ``Either you're with us, or against us,'' and any
nation that thwarts our ability to rout terror out where it exists will
be held to account, one way or the other.
I hope--we had some positive signals early--early in this war from
the Iranians. We would hope that they would continue to be a positive
force in helping us bring people to justice. We would hope, for example,
they wouldn't allow Al Qaida murderers to hide in their country. We
would hope that if that be the case, if someone tries to flee into Iran,
that they would hand them over to us, that they're a part of--if they're
a part of the coalition, then they need to be an active part of the
coalition.
In terms of Afghanistan, we are--we would like to work with the
Iranians, as well as other neighboring countries, to bring a stable
interim government--to stabilize the interim government. And to the
extent that they're involved, we would hope that they would participate.
If they are trying--if they in any way, shape, or form try to
destabilize the government, the coalition will be--we'll deal with them,
in diplomatic ways initially. And we would like very much for them to be
active participants in a stable Afghanistan. It's to their advantage, by
the way, that Afghanistan be stable.
Middle East Arms Shipment
Q. Mr. President, based on the evidence the Israeli delegation
presented at the State Department yesterday, about this arms shipment,
do you believe that it's time for the United States to either break or
suspend relations with Mr. Arafat and the Palestinian Authority?
The President. John [John King, Cable News Network], I think it's
very important for our administration to remain engaged with both
parties. Obviously, I want to make sure that the evidence is definitive.
But I'm, like many, beginning to suspect that those arms were headed in
the wrong--to promote terror. And terror will never enable us to achieve
peace in the Middle East. So long as there's terrorists trying to
disrupt the peace process, there won't be peace.
I do believe that once the evidence is in, that those responsible
need to be held to account. On the other hand, I also believe that our
country must stay engaged in the process. I intend to ask Zinni to go back to the region at the appropriate time, to
keep pushing for a dialog, to keep pushing for the process to go
forward.
Mr. Arafat must renounce terror, must
reject those who would disrupt the peace process through terror, and
must work hard to get to the peace table. It seems like it's up to him
to make these decisions.
Q. But has he been less than truthful in speaking to Secretary
Powell, General Zinni, and others, in saying he had nothing to do with
this and no knowledge of it?
The President. We will find out the facts, John. But he is--you
asked a question, should we basically disengage? And the answer is no,
we won't disengage from the Middle East. We will stay involved in the
Middle East peace process--or trying to get to the peace process. And it
starts with making the region more secure. Mr. Arafat must renounce terror and must reject those in the
region that would disrupt the peace process by the use of terrorist
means.
Pension Reform
Q. What can you do about pensioners--what can you do about
pensioners now? Isn't that horse already out of the barn at Enron?
The President. Our group is meeting, and they will bring
recommendations here. They'll look at--fully investigate what went on.
My concern, of course, is for the shareholders of Enron. But my--I have
great concern for the stories--for those I read about in the stories who
put their life savings aside and for whatever reason, based upon some
rule or regulation, got trapped
[[Page 44]]
in this awful bankruptcy and have lost life savings. And one of the
things this group is going to do is take a good, hard look at it.
Thank you all.
Note: The President spoke at 9:42 a.m. in the Oval Office at the White
House. In his remarks, he referred to Kenneth L. Lay, chairman and chief
executive officer, Enron Corp.; former Gov. Ann Richards of Texas; U.S.
Special Envoy to the Middle East Gen. Anthony Zinni, USMC (Ret.); and
Chairman Yasser Arafat of the Palestinian Authority. A tape was not
available for verification of the content of these remarks.