    [Public Papers of the Presidents of the United States: George W. Bush (2008, Book I)]
    [January 8, 2008]
    [Pages 43-46]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks Following a Video Teleconference With Iraq Provincial
    Reconstruction Team Leaders and Brigade Combat Commanders and an
    Exchange With Reporters
    January 8, 2008

        The President. Thank you very much. I had a series of good meetings
    today to discuss the situation in Iraq, including a video teleconference
    this morning with General Petraeus,
    Ambassador Crocker, and members of the
    national security team. I also spoke by video with Prime Minister
    Maliki to discuss the return of the Iraqi
    parliament that--it was clear from my discussions that there's great
    hope in Iraq, that the Iraqis are beginning to see political progress
    that is matching the dramatic security gains for the past year. There's
    still work to be done, but it was a very hopeful conversation.
        Today I just had a good discussion with some of our bravest
    citizens, members of our Nation's Provincial Reconstruction Teams and
    their brigade commanders in Iraq,
    three of whom are with me
    today, along with the Secretary and Deputy
    Secretary. I thank you all for coming. And
    the others were by SVTS, by video from Baghdad. I first of all thanked
    them for the progress they've helped make possible during the past year
    and the important work that they're doing in the communities all across
    Iraq.
        Provincial Reconstruction Teams are called PRTs, are a central part
    of the new strategy in Iraq that I announced a year ago. The strategy
    was built around three key elements: first was a surge of additional
    troops into Iraq, with a new mission to protect the Iraqi people from
    terrorists, insurgents, and illegal militias; second was a surge of
    operations that began in June once the troops were in place, with new
    offenses across the country to drive the terrorists and militias out of
    their strongholds; and third was a surge of Provincial Reconstruction
    Teams, was a civilian surge, which deployed across Iraq to ensure the
    military progress was quickly followed up with real improvements in the
    daily lives of the Iraqi citizens.
        Over the past year, we've doubled the number of PRTs in Iraq. There
    are now 24 of these teams serving in all 18 Iraqi Provinces. Many are
    embedded with military units and work closely with our troops to support
    their operations. Their mission is to help strengthen moderate leaders
    at the local, municipal, and Provincial level by providing assistance to
    help create jobs, deliver basic services, and build up local economies.
    The teams are helping Provincial governments spend their money more
    effectively. Across the country, these teams are helping to bring Iraqis
    together so that reconciliation can happen from the ground up.
        The leaders I met today updated me on important work they're doing
    and the progress they have made. For example, our PRT leaders in Baghdad
    report they have now mentored district councils and public work
    departments in several neighborhoods, provided funding for generation--
    generators to help build up local markets, and support a microgrant
    program to help small businesses reopen across their district in the
    city.
        Our PRT leaders in Kirkuk report that they helped broker a
    settlement that brought Sunnis back into the Provincial Council after a
    year-long boycott. They also helped the Provincial government
    successfully execute the budget, assisted local enterprises with small
    business loans, and helped establish a major crimes court in a
    Province--in the Province that is providing citizens with equal justice
    under the law.

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        Our PRT leaders in Najaf, which happens to be one of Shi'a Islam's
    holiest cities, report that they're working with Iraqis to build a
    modern airport that will allow Shi'a Muslims from around the world to
    travel to the city on pilgrimage. These PRT leaders briefed us on the
    changes they're seeing on the ground in Iraq. Because they live and work
    among the Iraqi people, they see the progress that is taking firsthand.
        And here's what they tell me: Violence across the country continues
    to decrease. Tens of thousands of Iraqis have stepped forward to join
    Concerned Local Citizens groups that are fighting Al Qaida and other
    extremists. And as the security improves, life is returning to normal in
    communities across Iraq, with children back in school and shops
    reopening and markets bustling with commerce.
        Improvements on the ground in Iraq are allowing some U.S. forces to
    return home. That's what we're--the strategy is called return on
    success. It has now begun. I don't think most Americans know this, but
    one Army brigade and one Marine expeditionary unit have come home and
    will not be replaced. And in the coming months, four additional brigades
    and two Marine battalions will follow suit.
        As we withdraw these forces, we will continue to pursue Al Qaida and
    other extremists in Iraq. Our enemies in Iraq have suffered blows in
    recent months, but they're still dangerous. They're not yet defeated. As
    we saw yesterday, when terrorists killed the leader of a Concerned Local Citizens group, the enemy remains
    capable of horrific violence. We're not going to allow these terrorists
    to find respite anywhere in Iraq, and we're not going to allow them to
    regain the strongholds that they've lost.
        The PRT leaders have gotten to know the Iraqi people. They
    understand the vast majority of Iraqis want to live in freedom and
    peace; that's what they know. You know why? Because the citizens tell
    them just that. They're helping give ordinary Iraqis confidence by
    rejecting the extremists and reconciling with one another so they can
    claim their place in a free Iraq and build a better life for their
    families.
        The men and women of our PRTs are serving on the frontlines in the
    war on terror. These are courageous souls. They could be doing a lot of
    other things, but they chose to go to the frontline where they can make
    a difference in world peace. And I can't thank you enough for the vital
    work you've done and for helping 2007, particularly the end of 2007,
    become incredibly successful beyond anybody's expectations. And we
    believe 2008, you're going to see continued progress.
        These people are helping improve the lives of citizens they've never
    met before, and in so doing, they're making this country more secure,
    and they're helping lay down a foundation for peace. And I want to thank
    them from the bottom of my heart, and I thank your families, as well,
    for the sacrifices they have made. We are so honored to have such
    courageous citizens such as yourself. And now I'll answer a couple of
    questions.
        Knoller [Mark Knoller, CBS Radio].

    Iran

        Q. Mr. President, what do you make of the incident in the Strait of
    Hormuz with Iran on Sunday? Do you think they were trying to provoke a
    fight with the U.S.?
        The President. Well, Mark, we viewed it as a provocative act. It is
    a dangerous situation, and they should not have done it, pure and
    simple.
        Q. What do you think they were up to?
        The President. I don't know what I think--what their thinking was,
    but I'm telling you what I think it was. I think it was a provocative
    act.
        Q. What will your message be to the 5th Fleet then when you're there
    in Bahrain?
        The President. My message is, thanks for serving the United States
    of America; we're proud of you. And my message today to

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    the Iranians is, they shouldn't have done what they did.
        Roger [Roger Runningen, Bloomberg News].

    National Economy/Housing Market

        Q. Yes, Mr. President. The index of people buying used homes fell
    more than expected in a report that came out today. And Secretary
    Paulson says that the housing really has not yet reached bottom. Does
    that nudge you further towards some sort of economic stimulus package?
        The President. Well, you know, I'm optimistic about the economy. I'm
    optimistic because I've seen this economy go through periods of
    uncertainty. I mean, in the 7 years that I've been the President, we've
    had  a  recession,  corporate  scandals,  the 9/11 attack, major
    national disasters, two wars in Afghanistan and Iraq. All that created
    was uncertainty, each one of those incidences, and we've been able to
    come through it because we've been resilient.
        And as I said yesterday and a couple of days earlier than that, I
    am--I like the fundamentals; they look strong, but there are new signals
    that should cause concern. And one of the signals is the fact that the
    housing market is soft, and it's going to take a while to work through
    the downturn. The number you just reflected is an indication of
    softness.
        And so what can you do about it? Well, one thing we can do about it
    is to help people who are creditworthy stay in their homes. And that's
    why Secretary Paulson and Secretary
    Jackson have put together what's called
    a HOPE NOW project, all aiming to get lenders and borrowers and
    investors and counselors together to help people find out how to
    renegotiate a loan and then get it done.
        As I told the people yesterday in Chicago, in the old days, you'd
    walk in and borrow your--borrow the money to buy a home, and then if you
    got in a bind, you'd go back to the loan officer. Well, what happens in
    these days is, you'll borrow the money, and all of a sudden, that loan
    is sold somewhere else, and you're not sure who to negotiate with. And
    so it's a much more complex world for many homeowners, and we're helping
    them, as best as we possibly can, find out how to renegotiate the home
    so they can stay in.
        Secondly, the Congress needs to pass the Federal Housing
    Administration reform act so that we can get more people better
    refinancing to stay in their home. There's some practical things that
    can be done. And so I'm--we're watching very carefully, and we're
    listening to different ideas about what may or may not need to happen.
    And it's--we'll work through this. We'll work through this period of
    time. And the entrepreneurial spirit is strong. And any rate--yes.

    Taxes

        Q. Thoughts about a tax cut?
        The President. Pardon me?
        Q. Thoughts about a tax cut?
        The President. Well, I can tell you something about taxes. Congress
    doesn't need to raise taxes, for starters. I know a bunch of them up
    there would like to. They'd like to get a little more money out of the
    people's pocket. But in times of uncertainty, you don't need to be
    raising taxes.
        Secondly, in times of uncertainty, it seems like Congress ought to
    be sending a message that we're not going to raise your taxes in the
    next 3 years by making the tax cuts permanent. And beyond that, we'll
    look at all different options.
        Listen, thank you. I'm looking forward to going on the trip. I hope
    people are coming. Does any of you get to come with me? That's too bad.
    [Laughter]
        Well, here's what we're going to do. We're going to go over and
    stress three themes. First theme is, is that it's important to lay out a
    vision in order for there to be a Palestinian state once roadmap
    obligations are met. What has to happen in order for there to be a
    peaceful settlement of a longstanding dispute is there to be a outlines
    of a state clearly defined so that at

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    some point in time, the Palestinians who agree that Israel ought to be--
    exist and agree that a state ought to live side by side with Israel in
    peace have something to be for. They need to have a vision that's
    clearly defined that competes with the terrorists and the killers who
    murder the innocent people to stop the advance of democracy.
        Secondly, I intend to work with our Arab friends and allies on this
    very issue, and remind them about, one, the strategy; and two, the
    obligations they have to help this vision become a reality; and thirdly,
    remind our friends and allies that the United States is committed to
    security in the region.
        One of the problems we have is that the intelligence report on Iran
    sent a mixed signal. And I'm going to remind them what I said in that
    press conference when I sat there and answered some of your questions:
    Iran was a threat, Iran is a threat, and Iran will continue to be a
    threat if they are allowed to learn how to enrich uranium.
        And so I'm looking forward to making it clear that the United States
    of America sees clearly the threats of this world, and we intend to work
    with our friends and allies to make the--that part of the world more
    secure.
        Thank you all very much. See you when I get back.

    Note: The President spoke at 2:12 p.m. in the Rose Garden at the White
    House. In his remarks, he referred to Gen. David H. Petraeus, USA,
    commanding general, Multi-National Force--Iraq; Prime Minister Nuri al-
    Maliki of Iraq; Kristin Hagerstrom, team leader, Ramadi Embedded
    Provincial Reconstruction Team; John Jones, team leader, Diyala
    Provincial Reconstruction Team; John Smith, team leader, Embedded
    Provincial Reconstruction Team, Baghdad 7; and Riyadh Samarrai, leader
    of the Adhamiya Awakening group, who was killed by a suicide bomber in
    Baghdad on January 8.