    [Public Papers of the Presidents of the United States: George W. Bush (2003, Book I)]
    [February 18, 2003]
    [Pages 180-183]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks at the Swearing-In Ceremony for William Donaldson as Chairman of the Securities and Exchange Commission
    and an Exchange With Reporters
    February 18, 2003

        The President. Darn right. Bill, welcome, and Jane, thanks for coming. It's my honor to welcome your family
    here to the Roosevelt Room. And I'm proud to welcome Bill Donaldson as
    the Chairman of the Securities and Exchange Commission.
        Bill will be a strong leader of the SEC and a forceful advocate for
    the interests of investors. He's the right man at the right time. We're
    so honored you've agreed to accept this challenge, really appreciate it.
        Bill Donaldson spent a career preparing for this challenge. He has
    served as a founder of a leading investment banking firm, chairman of
    the New York Stock Exchange, the founding dean of the Yale School of
    Management. He has set high standards throughout his entire career. He
    will lead an active and energetic agency.
        This agency has been working hard. They've last year filed a record
    number of actions for financial reporting and disclosure violations,
    sought the removal of more than 100 corporate officers and directors on
    the grounds of misconduct, and ordered corporations and executives to
    return to investors hundreds of million dollars in improper gains.
        This administration is committed to the enforcement of the security
    laws. We're committed to creating a climate of confidence in our
    markets. There's no better person to help achieve that commitment than
    Bill Donaldson. In the 2004 budget, I'm asking Congress to increase SEC
    funding by 73 percent over the year 2002. We want to make sure the SEC
    has the tools necessary to pursue its important mission.
        This Nation is increasingly a nation of stockholders, who invest for
    their families and for their futures. Americans should be confident in
    the information they use in order to make investment decisions. All
    investors deserve to be treated fairly in the Tax Code as well.
    Investors should not be punished for saving and investing in America's
    future. Investors should not be--should be rewarded for taking risk in
    the marketplace. The Tax Code ought to treat these people fairly, and so
    that's why I've proposed that Congress end the unfair and unwise double
    taxation of dividends. This measure could improve corporate governance
    in America as well.
        Companies across America attract investors in a number of ways. One
    such way is to promise rapid growth, is to say, ``Even though we may not
    have cashflow, the future of our company is magnificent. Therefore,
    invest with us.'' Another way, of course, is to promise a steady source
    of

    [[Page 181]]

    income in the form of dividends. Eliminating double taxation of
    dividends would give more companies a reason to distribute their profits
    through direct cash to investors in the form of dividends. With
    dividends serving as a stronger foundation for long-term value,
    companies that pay them will have less motive to artificially inflate
    profits just to cause temporary increases in stocks.
        Our law should not discriminate against those companies that focus
    on stable, long-term growth. Eliminating the double taxation of
    dividends is good for American investors; it's good for American
    seniors; it's good for corporate reform.
        I'm glad Bill Donaldson has agreed to take charge of an agency with
    the vital purpose of showing the American investor that they're--can
    rely upon the data on which they use to evaluate investments, to really
    say to the markets loud and clear that we expect there to be corporate
    integrity throughout our system. This is a man who has not only set high
    standards but has achieved them. He's got a lot of talent and a lot of
    drive, a lot of wisdom, and a lot of integrity.
        Mr. Chairman.

    [At this point, Chairman Donaldson made brief remarks.]

        The President. Thank you, Mr. Chairman. Good job.
        Chairman Donaldson. Thanks.
        The President. Thank you. Ron [Ron Fournier, Associated Press]. I'll
    answer a couple of questions here.

    Protests and Action Against Iraq

        Q. Thank you, Mr. President. What do you make of the fact that
    millions of people across the globe have taken to the streets to protest
    your approach to Iraq? And if you decide to go to war, how do you wage a
    campaign in the face of such stiff opposition?
        The President. Two points: One is that democracy is a beautiful
    thing and that people are allowed to express their opinion. I welcome
    people's right to say what they believe.
        Secondly, evidently some of the world don't view Saddam
    Hussein as a risk to peace. I respectfully
    disagree. Saddam Hussein has gassed his own people. Saddam Hussein has
    got weapons of mass destruction. Saddam Hussein has made--has defied the
    United Nations. Saddam Hussein is providing links to terrorists. Saddam
    Hussein is a threat to America, and we will deal with him.
        You know, I--war is my last choice. But the risk of doing nothing is
    even a worst option, as far as I'm concerned. I owe it to the American
    people to secure this country. I will do so.
        Q. Have you decided how to do so yet?
        The President. Pardon me?
        Q. Have you decided how you're going to deal with him yet?
        The President. Hopefully, Saddam Hussein
    will disarm.
        Q. Mr. President----
        The President. If he chooses not to disarm, as I have been saying
    for a long time, Ron, we'll lead a coalition of the willing to disarm
    him.
        Steve [Steve Holland, Reuters].

    U.N. Security Council Resolutions on Iraq

        Q. Should a second resolution on Iraq include a deadline? And how
    are you going to get around the opposition from France, Russia, and
    China?
        The President. We're working with our friends. As I said, a second
    resolution would be useful. We don't need a second resolution. It's
    clear this guy could even care less about the
    first resolution. He's in total defiance of 1441. But we want to work
    with our friends and allies to see if we can get a second resolution.
    That's what we're doing right now.
        Q. With a deadline?
        The President. We're working with our friends and allies right now
    to--how best to get a resolution out of the United Nations. As I say, it
    would be helpful to get

    [[Page 182]]

    one out. It's not necessary, as far as I'm concerned.

    Turkey

        Q. Mr. President, are you any closer to an aid package for Turkey,
    particularly given the continued problems with NATO regarding any
    defense of Turkey?
        The President. Well, first of all, as you know, NATO did express
    their desire to help Turkey, and I appreciate the NATO Allies. I also
    appreciate the EU statement yesterday that Saddam Hussein needs to fully disarm. I thought those were positive
    developments. We're working closely with the Turks. And you know, we've
    got great respect for the Turkish Government. They've got--had no better
    friend than the American Government. And hopefully we can come up with
    an agreement that's satisfactory to both parties. We're still working
    it.
        Yes, Bill [Bill Plante, CBS News].

    Iraq/United Nations

        Q. Mr. President, would it be easier to win the peace after the war
    in Iraq--if there is one--if you had the allies with you going in? And
    what about the idea of an ultimatum for Saddam, another last chance?
        The President. Well, you mean another, another, another last chance?
    Well, he knows my feelings, and that is he
    needs to disarm--completely, totally disarm. Listen, he's a fellow that
    likes to buy time through deception and delay. He believes time is on
    his side. After all, he was quoted in an Egyptian newspaper as saying
    all he's got to do is stall and defy the world, and, you know,
    coalitions will fall apart.
        I am determined to keep the peace. I'm determined to hold this
    man to account. And there's two reasons why:
    One, we have the obligation, I have the obligation, this administration
    has the obligation to do everything we can to protect the American
    people; secondly, I think it's very important for the United Nations to
    be useful as we go out into the future. And there's nothing less useful
    than issuing a resolution and then not upholding the resolution. And,
    after all, I want to remind the people that this man has been in
    defiance of resolution after resolution after resolution after
    resolution for 12 long years. And I think unless the United Nations
    shows some backbone and courage, it will render the--it could render the
    Security Council irrelevant. And that's a danger, in dealing with the
    new threats that the civilized world faces.
        We face terrorism. We face the idea of people having nuclear arms.
    We face people who have got weapons of mass destruction. We face these
    deadly terrorist networks teaming up with countries with weapons of mass
    destruction who could attack anytime. Those are the threats of the 21st
    century. The best way to deal with those threats is to have
    international organizations which are effective. And if the United
    Nations can't enforce its own resolutions--a resolution which, by the
    way, has been around for 12 years--it says something about its utility
    as we head into the future.
        I want the United Nations to be effective body. I think it's in our
    country's interest that it be effective. And we'll see whether or not
    it's got the capacity to be effective.
        Yes, Anne [Anne Kornblut, Boston Globe].

    Prime Minister Tony Blair of the United Kingdom

        Q. Given the size of the protests in England over the weekend, do
    you have any concerns that Tony Blair might pay a serious political
    price for supporting you on Iraq?
        The President. I think anytime somebody shows courage, when it comes
    to peace, that the people will eventually understand that.
        First of all, you know, size of protest, it's like deciding, well,
    I'm going to decide policy based upon a focus group. The role of a
    leader is to decide policy based upon

    [[Page 183]]

    the security--in this case, the security of the people. Tony Blair
    understands that Saddam Hussein is a risk. Tony Blair sees that, you
    know, a weakened United Nations is not good for world peace. And he is a
    courageous leader, and I'm proud to call him friend.
        Another courageous leader is coming to the ranch this weekend, Jose
    Maria Aznar. Maria I'm looking forward to having
    a good meeting with him. These are men of vision. They see the task at
    hand. And I'm proud to call them allies. We'll work together for the
    sake of peace.
        Listen, thank you all very much.

    Note: The President spoke at 10:22 a.m. in the Roosevelt Room at the
    White House. In his remarks, he referred to Jane Donaldson, wife of
    Chairman Donaldson; President Saddam Hussein of Iraq; and President Jose
    Maria Aznar of Spain. The transcript released by the Office of the Press
    Secretary also included the remarks of Chairman Donaldson. The Office of
    the Press Secretary also released a Spanish language transcript of these
    remarks.