[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.