[Public Papers of the Presidents of the United States: George W. Bush (2008, Book I)]
[April 29, 2008]
[Pages 587-600]
[From the U.S. Government Publishing Office www.gpo.gov]



The President's News Conference
April 29, 2008

    The President. Thank you. Good morning. This is a tough time for our 
economy. Across our country, many Americans are understandably anxious 
about issues affecting their pocketbook, from gas and food prices to 
mortgage and tuition bills. They're looking to their elected leaders in 
Congress for action. Unfortunately, on many of these issues, all they're 
getting is delay.
    Americans are concerned about energy prices, and I can understand 
why. I think the last time I visited with you it was like--I said it was 
like a tax increase on the working people. The past 18 months, gas 
prices have gone up by $1.40 per gallon. Electricity prices for small 
business and families are rising as well.
    I've repeatedly submitted proposals to help address these problems, 
yet time after time, Congress chose to block them. One of the main 
reasons for high gas prices is that global oil production is not keeping 
up with growing demand. Members of Congress have been vocal about 
foreign

[[Page 588]]

governments increasing their oil production, yet Congress has been just 
as vocal in opposition to efforts to expand our production here at home.
    They've repeatedly blocked environmentally safe exploration in ANWR. 
The Department of Energy estimates that ANWR could allow America to 
produce about a million additional barrels of oil every day, which 
translates to about 27 millions of gallons of gasoline and diesel every 
day. That would be about a 20-percent increase of oil--crude oil 
production over U.S. levels, and it would likely mean lower gas prices. 
And yet such efforts to explore in ANWR have been consistently blocked.
    Another reason for high gas prices is the lack of refining capacity. 
It's been more than 30 years since America built its last new refinery, 
yet in this area too, Congress has repeatedly blocked efforts to expand 
capacity and build more refineries.
    As electricity prices rise, Congress continues to block provisions 
needed to increase domestic electricity production by expanding the use 
of clean, safe nuclear power. Instead, many of the same people in 
Congress who complain about high energy costs support legislation that 
would make energy even more expensive for our consumers and small 
businesses.
    Congress is considering bills to raise taxes on domestic energy 
production, impose new and costly mandates on producers, and demand 
dramatic emissions cuts that would shut down coal plants and increase 
reliance on expensive natural gas. That would drive up prices even 
further. The cost of these actions would be passed on to consumers in 
the form of even higher prices at the pump and even bigger electric 
bills.
    Instead of increasing costs and imposing new roadblocks to domestic 
energy production, Congress needs to clear away obstacles to more 
affordable, more reliable energy here at home.
    Americans are concerned about rising food prices. Unfortunately, 
Congress is considering a massive, bloated farm bill that would do 
little to solve the problem. The bill Congress is now considering would 
fail to eliminate subsidy payments to multimillionaire farmers. 
America's farm economy is thriving. The value of farmland is 
skyrocketing, and this is the right time to reform our Nation's farm 
policies by reducing unnecessary subsidies. It's not the time to ask 
American families who are already paying more in the checkout line to 
pay more in subsidies for wealthy farmers. Congress can reform our farm 
programs, and should, by passing a fiscally responsible bill that treats 
our farmers fairly and does not impose new burdens on American 
taxpayers.
    Americans are concerned about making their mortgage payments and 
keeping their homes, and I don't blame them. Last year, I called on 
Congress to pass legislation that would help address problems in the 
housing market. This includes critical legislation that would modernize 
the Federal Housing Administration, reform Fannie Mae and Freddie Mac, 
and allow State housing agencies to issue tax-free bonds to refinance 
subprime loans. Yet they failed to send a single one of these proposals 
to my desk. Americans should not have to wait any longer for their 
elected officials to pass legislation to help more families stay in 
their homes.
    Americans are concerned about the availability of student loans. The 
recent credit crunch makes it uncertain that some students will be able 
to get the loans they need. My administration is taking action through 
the Department of Education's lender of last resort program, which works 
to arrange loans for students who are unable to secure one from a lender 
on their own. In other words, we're helping. Congress needs to do more 
by passing a bill that would temporarily give the Federal Government 
greater authority to buy Federal student loans. This authority would

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safeguard student loans without permanently expanding the Government's 
role in their financing.
    In all these issues, the American people are looking to their 
leaders to come together and act responsibly. I don't think this is too 
much to ask, even in an election year. My administration will reach out 
to Congress. We will work to find areas of agreement so that we can deal 
with the economic pressures that our American taxpayers and American 
families are feeling. I ask Congress to do its part by sending me 
sensible and effective bills that I can sign, instead of issuing or 
sending bills that simply look like political statements. We can work 
together. We can help Americans weather this difficult period. We can 
keep our country moving forward.
    Now I'll be glad to take some of your questions. Jennifer [Jennifer 
Loven, Associated Press].

National Economy/Energy

    Q. Thank you, sir. You have said that we need to wait until the 
first stimulus has taken effect to act again. But since it was passed, 
gas prices have gone up, foreclosures have gone up, there have been 
layoffs, news just this morning that consumer confidence is down yet 
again.
    President Bush. Yes.
    Q. Isn't it time to think about doing more?
    And on another issue, would you support a summer moratorium on the 
Federal gas tax?
    The President. First of all, the money is just now making it into 
people's bank accounts. And I applaud the Speaker and the leader of the Senate and 
minority leaders there to--for working together to get this done. And 
now, after a period of time, the money is beginning to arrive, and we'll 
see what the effects are.
    And we'll look at any idea in terms of energy, except I will tell 
you this: that if Congress is truly interested in solving the problem, 
they can send the right signal by saying, we're going to explore for oil 
and gas in the U.S. territories, starting with ANWR. We can do so in an 
environmentally friendly way. They ought to say, why don't we--I 
proposed, you might remember, taking some abandoned military bases and 
providing regulatory relief so we can build new refineries. I mean, if 
we're generally interested in moving forward with an energy policy that 
sends a signal to the world that we're not--we're going to try to become 
less reliant upon foreign oil, we can explore at home as well as 
continue on with an alternative fuels program.
    Yes, sir.

National Economy/Energy/Oil Supply

    Q. So was that a yes on the moratorium?
    The President. No. I'm going to look at everything they propose. 
We'll take a look.
    Q. Thank you, Mr. President. Were you premature in saying that the 
U.S. economy is not in a recession when food and energy prices are 
soaring so high?
    And what more can you do to persuade Saudi Arabia during your 
upcoming visit to reconsider output levels and cut prices?
    The President. Yes. Look, I mean, you know, the words on how to 
define the economy don't reflect the anxiety the American people feel. 
The average person doesn't really care what we call it. The average 
person wants to know whether or not we know that they're paying higher 
gasoline prices and that they're worried about staying in their homes. 
And I do understand that. That's why we've been aggressively helping 
people refinance their homes. That's why I continue to call upon 
Congress to pass legislation that will enable people to stay in their 
homes.
    These are tough times. People--economists can argue over the 
terminology. But--and these are difficult times, and the American people 
know it. And they want to know whether or not Congress knows it. I think 
an important signal to send on energy, just like I said, is to say, 
okay, we're going to go find oil here at home.

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    We can--we're transitioning to a new era, by the way, a new era 
where we're going to have batteries in our cars that will power--enable 
people to drive 40 miles on electricity. There's going to be more 
ethanol on the market, more alternative fuels. It would be--our driving 
habits will change. But in the meantime, we need to be sending a signal 
to the world markets that we intend to explore here in America. We can 
also send a clear signal that we understand supply and demand. And then 
when you don't build a refinery for 30 years, it's going to be a part of 
restricting supply, and therefore, we ought to expand our refining 
capacity by permitting new refineries and getting after it quickly.
    On the electricity front, as you know, I'm a big believer in nuclear 
power, except we keep getting mixed signals out of Congress, and the 
regulatory system sends mixed signals.
    And so--and then to your question on the Saudis, look, I have made 
the case that the high price of oil injures economies. But I think we 
better understand that there's not a lot of excess capacity in this 
world right now. Hopefully, high prices will spur more exploration to 
bring excess capacity on, but demand is rising faster than supply. And 
that's why you're seeing global energy prices rise. And that's why it's 
important for us to try to take the pressure off by saying, we're going 
to start exploring here at home.
    John [John Yang, NBC News].

Alternative Fuel Sources/Price of Food

    Q. Thank you, Mr. President. I'd like to ask you about an area----
    The President. You're welcome.
    Q. ----where food prices and energy policy come together; that's 
biofuels.
    The President. Yes.
    Q. The World Bank says about 85 percent of the increase in corn 
price since 2002 is due to biofuel--increased demand for biofuels. And 
your Secretary of State said that--indicated yesterday that she thought 
that might be part of the problem. Do you agree with that? And what can 
the United States do--what more can the United States do to help make 
food more affordable around the world?
    The President. Yes, actually, I have a little different take. I 
thought it was 85 percent of the world's food prices are caused by 
weather, increased demand, and energy prices--just the cost of growing 
product--and that 15 percent has been caused by ethanol--or the arrival 
of ethanol.
    By the way, the high price of gasoline is going to spur more 
investment in ethanol as an alternative to gasoline. And the truth of 
the matter is, it's in our national interests that we--our farmers grow 
energy as opposed to us purchasing energy from parts of the world that 
are unstable or may not like us.
    In terms of the international situation, we are deeply concerned 
about food prices here at home, and we're deeply concerned about people 
who don't have food abroad. In other words, scarcity is of concern to 
us. Last year, we were very generous in our food donations, and this 
year, we'll be generous as well. As a matter of fact, we just released 
about $200 million out of the Emerson Trust as part of a ongoing effort 
to address scarcity.
    One thing I think that would be--I know would be very creative 
policy is if we would buy food from local farmers as a way to help deal 
with scarcity, but also as a way to put in place an infrastructure so 
that nations can be self-sustaining and self-supporting. It's a proposal 
I put forth that Congress hasn't responded to yet, and I sincerely hope 
they do.
    That would be Jim [Jim Axelrod, CBS News].

Price of Gasoline/National Economy/2008 Presidential Election

    Q. Good morning, Mr. President. Thank you. I just want to follow up 
on the idea

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of the gas tax moratorium, if I may, because you're indicating that 
perhaps you'd be open to it. You mentioned in your opening remarks 
that----
    The President. I'm open to any ideas, and we'll analyze everything 
that comes our way, but go ahead.
    Q. Well, we're talking about perhaps the most immediate relief to 
people who are buying gasoline every day, because it would be an 18.4-
cents-a-gallon tax cut. Senator Clinton and Senator McCain are in favor 
of it; Senator Obama is not.
    The President. Yes.
    Q. But Americans are hearing about this every day. So could you 
flesh out, perhaps, some of your thinking about why this would be a good 
idea or not, why you would agree with Senator McCain or Senator Obama?
    The President. No, I appreciate you trying to drag me in the '08 
race. And this is the first attempt to do so, and I can understand why 
you would want to do that.
    I will tell you that, first of all, the American people have got to 
understand that here in the White House, we are concerned about high 
gasoline prices. We're concerned about high food prices. We're concerned 
about people staying in their homes. And we're concerned about student 
loans, just like I described. And Congress can be helpful. Congress, 
they can show leadership by dealing with these issues.
    And we'll consider interesting ideas. But, Jim, what I'm not going 
to do is jump right in the middle of a Presidential campaign. We'll let 
the candidates argue out their ideas.
    Q. Well, would----
    The President. I just told you, I'll consider the ideas. If it's a 
good idea, we embrace it; if not, we're analyzing the different ideas 
coming forward.
    Wendell [Wendell Goler, FOX News Channel].

Alternative Fuel Sources/Energy

    Q. Mr. President, you just said there's not a lot of excess supply 
out there. Some energy experts think we may have already passed or be 
within a couple of years of passing the maximum oil pumping capability. 
In other words, we may be close to tapping all we've got. Do you think 
that's the case? And if you do, why haven't you put more resources into 
renewable energy research, sir?
    The President. Wendell, we've put a lot into ethanol. And we're--
matter of fact, the solution to the issue of corn-fed ethanol is 
cellulosic ethanol, which is a fancy word for saying we're going to make 
ethanol out of switchgrasses or wood chips. And we're spending a lot of 
money along those lines.
    But energy policy needs to be comprehensive. And we got to 
understand, we're in a transition period. The problem is, there's been a 
lot of focus by the Congress in the intermediate steps and in the long-
term steps--the long-term steps being hydrogen; the intermediate steps 
being biofuels, for example, and researching the biofuels and battery 
technology--but not enough emphasis on the here and now.
    And so you ask--you say that people think we can't--there's not any 
more reserves to be found. Well, there are reserves to be found in ANWR. 
That's a given. I just told you that there's about 27 million gallons of 
diesel and gasoline that could be--from domestically produced crude oil 
that's not being utilized. And not only that, we can explore in 
environmentally friendly ways. New technologies enables for--to be able 
to drill like we've never been able to do so before--slant hole 
technologies and the capacity to use a drill site, a single drill site, 
to be able to explore a field in a way that doesn't damage the 
environment. And yet this is a litmus test issue for many in Congress. 
Somehow if you mention ANWR, it means you don't care about the 
environment. Well, I'm hoping now people, when they say ANWR, means

[[Page 592]]

you don't care about the gasoline prices that people are paying.
    Yes, sir. Rog [Roger Runningen, Bloomberg News].

Strategic Petroleum Reserve

    Q. Thank you, Mr. President, and good morning.
    The President. Good morning. [Laughter] I like a friendly guy here 
in the Rose Garden.
    Q. Sir, 14----
    The President. Would that be you, Rog, a friendly guy here in the 
Rose Garden? [Laughter]
    Q. Thank you.
    The President. Yes. Mr. Sunshine, they call you. [Laughter]
    Q. Fourteen Senators, including your own Senator, Kay Bailey 
Hutchison from Texas, calling on you to stop filling the Strategic 
Petroleum Reserve. You've been asked that several times over the past 
few years.
    The President. Yes.
    Q. I know what your answer has been. But do you think now, with the 
rising prices, the record high oil prices, it's time to change course?
    The President. In this case, I have analyzed the issue. And I don't 
think it would affect price for this reason: We're buying, at the 
moment, about 67,000 to 68,000 barrels of oil per day, fulfilling 
statutory obligations to fill up the SPRO. World demand is 85 million 
barrels a day. So the purchases for SPRO account for one-tenth of one 
percent of global demand. And I don't think that's going to affect 
price, when you affect one-tenth of one percent. And I do believe it is 
in our national interest to get the SPRO filled in case there's a major 
disruption of crude oil around the world.
    I mean, one of the--for example, one of the things the--Al Qaida 
would like to do is blow up oil facilities. Understanding we're in a 
global market, a attack on an oil facility in a major oil exporting 
country would affect the economies of their enemy--that would be us and 
other people who can't stand what Al Qaida stands for. And therefore, 
the SPRO is necessary, if that's the case, to be able to deal with that 
kind of contingency. And if I thought it would affect the price of oil 
positively, I'd seriously consider it. But when you're talking about 
one-tenth of one percent of global demand, I think the--if you--on a 
cost-benefit analysis, I don't think you get any benefits from making 
the decision. I do think it costs you oil in the case of a national 
security risk.
    Martha [Martha Raddatz, ABC News].

Afghanistan/War on Terror

    Q. Thank you, Mr. President. I'd like to switch to Afghanistan. 
There was another attempt on President Karzai's life. There are 
operations going on there right now. Is the strategy succeeding? Are we 
winning in Afghanistan?
    The President. Yes, I think we're making progress in Afghanistan, 
but there's a very resilient enemy that obviously wants to kill people 
that stand in the way of their reimposition of a state that is--which 
vision is incredibly dark. I mean, it's very important for the American 
people to remember what life was like in Afghanistan prior to the 
liberation of the country. We had a government in place that abused 
people's human rights. They didn't believe in women's rights, they 
didn't let little girls go to school, and they provided safe haven to Al 
Qaida. In the liberation of this country, we've achieved some very 
important strategic objectives: denying Al Qaida safe haven from which 
to plot and plan attacks and replacing this repressive group with a 
young democracy.
    And it's difficult in Afghanistan. I mean, it's--if you know the 
history of the country, you understand it's hard to go from the kind of 
society in which they had been living to one in which people are now 
responsible for their own behavior. But I am pleased with a lot of 
things. One, I'm pleased with the number of roads that have

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been built. I'm pleased with the number of schools that have opened up. 
I'm pleased a lot of girls, young girls, are going to school. I'm 
pleased health clinics are now being distributed around the country. I'm 
pleased with the Afghan Army, that when they're in the fight, they're 
good.
    I wish we had completely eliminated the radicals who kill innocent 
people to achieve objectives, but that hasn't happened yet. And so I 
think it's very much in our interests to continue helping the young 
democracy, and we will.
    Yes. Obviously, you've got a follow-up.
    Q. But do you think we're winning? Do you think we're winning?
    The President. I do. I think we're making good progress. I do, yes.
    Q. Can I just add to that? A couple of weeks ago----
    The President. No, you can't. This is the second follow-up. You 
usually get one follow-up, and I was nice enough to give you one. I 
didn't give anybody on this side a follow-up, and now you are trying to 
take a second follow-up.
    Q. They didn't try.
    The President. I know you try.
    Yes.
    Q. Can I just say that----
    The President. No, they just cut off your mike. You can't, no.
    Q. A couple of weeks ago, you said----
    The President. Now she's going to go without the mike. This is 
awesome. [Laughter]
    Q. A couple of weeks ago, you said that in Iraq, in 2006, you said 
we were winning and the strategy was working to keep up troop morale.
    The President. Yes.
    Q. How can we believe that you're not doing the same thing here?
    The President. Oh, you tried to ask me that question before. It's a 
repeat. Look, I said----
    Q. No, I'm talking----
    The President. Can I finish, please? The question you asked me 
before at the exclusive I gave you on the ranch was, ``You said that we 
were winning in the past.'' I also said that there was tough fighting. 
Now, make sure you put the comments in place.
    So what I'm going to tell you now is, we're making progress in 
Afghanistan, but there's tough fighting. I'm under no illusions that 
this isn't tough. I know full well we're dealing with a determined 
enemy. I believe it's in our interest that we defeat that enemy. And so 
yes, we're making progress, but it's also a tough battle. We're facing 
people who are willing to strap bombs on themselves and walk into places 
where the innocent dwell or the innocent shop and kill them.
    Is it in our interest to confront these people now, whether it be in 
Afghanistan or Iraq or Europe or anywhere else? And the answer is, 
absolutely, it's in our interest. And the notion that somehow we can let 
these people just kind of have their way, or, you know, let's don't stir 
them up, is naive or disingenuous, and it's not in our Nation's 
interests. We are in a global struggle against thugs and killers, and 
the United States of America has got to continue to take the lead.
    And so in Afghanistan, yes, we're making progress. Does that mean 
that we're--that it's over? No, it doesn't mean it's over. We're in a 
long struggle, as I've told you many a time, against these jihadists. 
You defeat them ultimately by the advance of democracy. See, this is an 
ideological struggle. These aren't isolated, kind of, law enforcement 
moments. We're dealing with a group of ideologues who use asymmetrical 
warfare--that means killing innocent people--to try to achieve their 
objectives. And one objective is to drive us out of Afghanistan, Iraq, 
the Middle East, or anywhere else where we try to confront them.
    And so yes, I mean, look, is it tough? Yes, it's tough. Is it 
difficult? Absolutely. Is it worth the fight? In my judgment, yes, it 
is.
    Yes, ma'am.

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Syria/North Korea/Iran

    Q. Thank you, Mr. President. What is the impact--[inaudible]?
    The President. I can't hear you too well. Sorry, got a flawed mike. 
Martha, what did you do to the mike? [Laughter]
    Q. Thank you, sir.
    The President. She wanted an exclusive again. Anyway. [Laughter]
    Q. Mr. President, thank you, sir. And previously, when asked about 
Israel's September bombing of the Syrian facility, you refused 
aggressively to discuss it. Then suddenly last week, your administration 
released classified photos and details of that bombing, intelligence 
officials claiming that it showed that this facility was a North Korean-
designed nuclear facility being actually built with the help of 
Pyongyang. Why the turnaround, sir? What did you hope that that would 
accomplish? And what do you say to lawmakers of both parties on Capitol 
Hill who are quite concerned that, indeed, if this was what this 
facility was, that it took some 8 months for you to inform them, sir?
    The President. Thank you. Let me correct the record. We briefed 22 
Members of Congress on what I'm about to tell you. First, we were 
concerned that an early disclosure would increase the risk of a 
confrontation in the Middle East or retaliation in the Middle East. As I 
mentioned to you early on, we did notify 22 Members of Congress, key 
committee chairmen. And I was--I'm mindful that there was going to be 
this kind of reaction. And we--of course, we wanted to include more 
Members of Congress at a time when we felt the risk of retaliation or 
confrontation in the Middle East was reduced. And so that moment came 
upon us and then extended the briefings.
    We also wanted to advance certain policy objectives through the 
disclosures. And one would be to the North Koreans, to make it 
abundantly clear that we may know more about you than you think, and 
therefore, it's essential that you have a complete disclosure on not 
only your plutonium activities but proliferation as well as enrichment 
activities.
    And then we have an interest in sending a message to Iran, and the 
world for that matter, about just how destabilizing a--nuclear 
proliferation would be in the Middle East, and that it's essential that 
we work together to enforce U.N. Security Council resolutions aimed at 
getting Iran to stop their enrichment programs. In other words, one of 
the things that this example shows is that these programs can exist and 
people don't know about them and--because the Syrians simply didn't 
declare the program. They had a hidden program.
    And finally, we wanted to make it clear to Syria and the world that 
their intransigence in dealing with--helping us in Iraq or destabilizing 
Lebanon or dealing with Hamas, which is a destabilizing force in our 
efforts to have a Palestinian state coexist peacefully with Israel, that 
those efforts are--it gives us a chance to remind the world that we need 
to work together to deal with those issues. So that's why we made the 
decision we made.
    Yes, sir.

Congress/Legislative Priorities

    Q. Mr. President, you've expressed frustration with Congress, 
obviously, over the economic--wanting them to do more on the economy. 
They've blocked you on Colombia. They've blocked you on the FISA issue. 
Are you frustrated? Are you angry? And do you have any real hope of 
being able to work with this Congress this year?
    The President. Yes. I am--I believe that they're letting the 
American people down, is what I believe. The--on the FISA issue, it is 
hard to believe that it's okay to pass the Protect America Act in August 
of 2007, and that act--and that people in Congress can't--don't believe 
that act is relevant in 2008. I mean, the act was set to expire; it did. 
And yet this threat hasn't gone away.

[[Page 595]]

And I can only--it's either lack of leadership or a lack of 
understanding of the issue. And either way, it's not good for the 
country. We need to make sure our professionals have the tools to 
protect the American people from attack.
    The Colombia free trade agreement--this economy is--as I mentioned 
to you, it's a sour time. It's tough for the American people. And yet 
the Colombia free trade agreement would benefit our economy. And the 
reason why is, is that many goods from Colombia come into our country 
duty free. And yet our goods going to Colombia are taxed through tariff. 
And the American people expect the President and the Congress to at 
least insist that a foreign country treat us the way we treat them. And 
in this case, the benefits will be more exports, more midsized and small 
businesses exporting into Colombia. About 9,000 exporters into Colombia 
today; 8,000 are midsized and small businesses. And when you can export 
more, it helps the economy. And one of the bright lights of the economy 
has been the amount of exports going overseas.
    So rather than playing politics or whatever rationale that they have 
made for Colombia, they ought to be saying, this is good for our 
economy, it's good for workers, it's good for small businesses.
    And so I'm perplexed, I guess is the best way to describe it, about 
why there's no action, inactivity on big issues. And because the two 
issues you mentioned--FISA, protecting America, and Colombia, protecting 
America's economy by encouraging growth--are important to people whether 
they be Republicans, Democrats, or Independents.
    Sheryl [Sheryl Gay Stolberg, New York Times].

National Economy/Energy/Taxes

    Q. Thank you, Mr. President.
    The President. You're welcome.
    Q. I'm still waiting for my exclusive at the ranch.
    The President. Yes. [Laughter]
    Q. Mr. President, today I'm--[laughter].
    The President. I'm at a loss for words. If only you'd have been at 
the White House Correspondents' dinner, I would have invited you. 
[Laughter] Anyway, please, go ahead.
    Q. Well said.
    The President. It's an inside joke, for everybody listening. 
[Laughter]
    Q. Mr. President, you have spoken today about opening ANWR for 
drilling and also refineries. But these are clearly long-term solutions 
to the problem of rising gas prices. What can you tell Americans about 
what your administration is doing in the short term?
    And secondly, have you been briefed on tomorrow's GDP numbers, and 
are you concerned----
    The President. No, I haven't been.
    Q. Okay--and are you concerned that they will show us to officially 
be in a recession?
    The President. I think they'll show that we're--it's a very slow 
economy. I can't guess what the number will be, and I haven't been 
shown, truly.
    And by the way, opening up ANWR is not long term, it's intermediate 
term. But it sends a clear signal, is what it does. It sends a clear 
signal to the markets that the United States is not going to restrict 
exploration, the United States is going to encourage exploration.
    And in the meantime, we have done--increasing CAFTA, for example. 
But the market's going to do as much for encouraging conservation as 
anything else is now. And so I firmly believe that--you know, if there 
was a magic wand to wave, I'd be waving it, of course. It's--I strongly 
believe it's in our interest that we reduce gas prices--gasoline prices. 
I mean, it would be like a major tax cut for people. And----
    Q. But what----

[[Page 596]]

    The President. But let me finish, please, Sheryl. Strike one on the 
exclusive. [Laughter] Excuse me, strike two. [Laughter]
    That--you made me lose my train of thought, of course. Maybe that's 
what you were attempting to do. No, I think that if there was a magic 
wand and say, okay, drop price, I'd do that. And so part of this is to 
make--set the psychology right that says to the world, we're not going 
to become more beholden on your oil; we're going to open up and be 
aggressive and have an aggressive energy policy. Secondly, we're going 
to be--send the signal we're going to be building new refineries.
    But there is no magic wand to wave right now. It took us awhile to 
get to this fix. That's why I told you that if Congress had responded--
as a matter of fact, Congress did pass ANWR in the late 1900s--I mean, 
1990s--and the 1900s--1990s, but it didn't go forward. And it's in my 
considered judgment, given the technological advances, to say, this is--
we'll destroy the environment is just--I don't think it's an accurate 
statement.
    And so I think it's very important, Sheryl, for Congress. The other 
thing Congress can do, if you want to send a good signal during these 
uncertain times, is make the tax cuts permanent, is to let people--send 
the signal that people are going to be able to keep their money. And I 
think that will help the psychology of the country.
    Yes, Mark [Mark Knoller, CBS Radio].

Hamas/Situation in the Middle East

    Q. Mr. President, do you feel----
    The President. Yes, you can use a mike.
    Q. Do you feel your foreign policy in the Middle East has been 
undermined by Jimmy Carter's meeting with Hamas leaders? What harm does 
it do for him to have met with Hamas leaders?
    The President. No. Foreign policy and peace is undermined by Hamas 
in the Middle East. They're the ones who are undermining peace. They're 
the ones whose foreign policy objective is the destruction of Israel. 
They're the ones who are trying to create enough violence to stop the 
advance of the two-party state solution. They are a significant problem 
to world peace--or Middle Eastern peace.
    And that's the reason I'm not talking to them. And that's the reason 
why--it's just important for people to understand that this is a--we're 
in a--we're witnessing a struggle between those who understand liberty 
and believe in the advance of liberty and those who want to stop the 
advance of liberty. And Hamas has made their position very clear.
    Unfortunately, they're getting help. In Syria, they get help. 
There's rumors about Iranian help. And these countries that I just named 
are--take, for example, Lebanon. I talked to Prime Minister 
Siniora today. Here's a struggling democracy in 
the heart of the Middle East that is--whose internal politics are being 
influenced by Syria, Hizballah--as a result of Iranian influence with 
Hizballah, all aiming to destabilize the country, which should be a 
clear signal about the intents of--the intentions of groups like 
Hizballah and Hamas.
    And so when you want to talk about peace being difficult in the 
Middle East, it's going to be difficult. But it's even made more 
difficult by entities like Hamas, who insist upon lobbing rockets into 
Israel, trying to provoke response and trying to destabilize--even 
destabilize the region more.
    And anybody can talk to who they want, but I just want the people to 
understand that the problem is Hamas. And until Hamas changes or until 
there's a competing vision in the Middle East for President 
Abbas, Prime Minister Fayyad to offer to the Palestinian people, that's all the more 
reason to try to define a state. And that's why I'm going to the Middle 
East, besides going to the 60th anniversary of Israel.
    Yes, Ann [Ann Compton, ABC News].

Hamas/Middle East Peace Process

    Q. Thank you, sir. Did any good come out of President Carter's talks 
with Hamas?

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And did anyone in your administration ask him not to do it? And will it 
have any impact on your trip to the Middle East?
    The President. I didn't talk to him, and I don't know. I don't know 
what the conversations were, and I don't see Hamas changing. It's up to 
Hamas to change. And you get these meetings with these people, and they 
say one thing and do another. And this is the way it's been now for 7\1/
2\ years in this administration, watching Hamas be a destabilizing 
influence.
    And I supported the elections, by the way. And curiously enough, 
they won the elections against Fatah because they ran on a noncorruption 
campaign. The sad situation is, now they've been given power, they 
haven't delivered for the people in Gaza.
    And my mission is to--when I go to the Middle East--is to continue 
to work with both Israelis and the--President Abbas and his Government on a variety of fronts: one, 
coming up with the vision, helping them find the common ground on the 
vision; but also working with the Israelis to empower the Palestinians 
in the West Bank to be more in charge of security, to have less 
obstacles with which to deal with, to help the Palestinians with 
economic vitality and growth. There's some very interesting initiatives 
that are being developed there.
    I'm still hopeful we'll get an agreement by the end of my 
Presidency. Condi is heading back out 
there. I've been in touch with President Abbas 
here in the Oval Office, and I talk to Prime Minister Olmert, and the attitude is good. People do understand the 
importance of getting a state defined.
    But Hamas is--look, when you're Israel and you've got people lobbing 
rockets into your country, you're going to take care of business. But 
you got to ask, why is Hamas lobbing rockets? And one reason why is 
because they're trying to destabilize and create chaos and confusion. 
And to answer whether or not the people's conversations with them were 
more effective: That's all we got to do, is watch and see how Hamas 
behaves.
    Richard [Richard Wolf, USA Today].

Congressional Action on Supplemental Appropriations/Veterans' Benefits

    Q. Thank you, Mr. President. Congress is preparing to add a couple 
of things to your supplemental spending request for Iraq. And I'm 
wondering, some of these seem like things you could support: extending 
unemployment benefits and, particularly, additional help for Iraq and 
Afghanistan war veterans in terms of educational benefits. Are these 
things you might agree to, even though you have set a $108 billion 
ceiling on the package?
    The President. Richard, 108 is 108. And I made my position very 
clear to Congress, and I will not accept a supplemental over 108 or a 
supplemental that micromanages the war, ties the hands of our 
commanders.
    We will work with Congress and--on these veterans' benefits. I'm a 
firm believer that we ought to treat our veterans with respect. In the 
State of the Union, I talked about the idea of transferring--a soldier 
being able to transfer educational benefits to spouse or children. We've 
sent legislation to that effect up to Congress; we would like for them 
to move on it quickly. But the 108 is 108.
    Michael [Michael Allen, Politico].

2008 Presidential Election/U.S. Foreign Policy

    Q. Thank you, Mr. President. I wonder if there's a big, urgent 
problem facing the country, coming down the road, that you worry your 
successor will neglect or postpone. That is, when the politics are done, 
after the war on terror, what do you think should be at the top of the 
list of the person who moves into that office?
    The President. Yes. I don't think John McCain is going to neglect the war on terror, and I do think 
he'll be the President. Here I am interjecting myself in the '08

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campaign, just like I told you I wouldn't. That's unfair, isn't it?
    He--it's very important for the President to 
understand that America is still in danger of attack and that we're 
dealing in--with an ideological struggle that can only be solved with 
the spread of liberty. And a concern of mine, as you've heard me say, is 
that the Nation has had the tendency in the past to become isolationist 
and correspondingly protectionist. And I would hope whoever the 
President is--and I do believe it will be John--will be willing to 
resist the impulse, the temptation to say, well, it's not worth it 
anymore to confront an enemy; it's not worth it to try to do the hard 
work of helping democracies thrive and succeed. Because not only is it 
worth it; we will succeed in laying the foundation for peace if we have 
faith in the capacity of liberty to be transformative.
    I'm also concerned about protectionism. This lad right here asked me 
about Congress's intransigence on Colombia. I think it reflects the fact 
that there is a strong protectionist sentiment in the United States. 
People--good people--believe it is not in our interest to be opening up 
markets. You might remember the CAFTA trade vote. We won by one vote, 
and it was a tough vote to get. And now the Speaker pulled a unique maneuver to stop the Colombia from 
moving forward. And it's a sign of--that the country is losing its 
confidence to a certain extent, that protectionist policy is better than 
confidently trading and treating unfairness in the marketplace.
    And so my worry--not worry--my hope is, is that whoever the 
President is understands that America is a force for good in the world, 
that we're--that in the spread of liberty, we're adhering to a universal 
value. It's not an American value, it's a universal value, the notion of 
liberty. And you've heard me say it a lot. I do believe it's a gift from 
the Almighty to every man, woman, and child. And if you believe in that 
and act on that, you're really acting on a platform of peace, because 
ultimately, liberty yields the peace you want. It's transformative and 
powerful. And I believe that people will be making a mistake if they 
say, we can't compete economically, and therefore, let's throw up walls. 
And yet the tendencies here in America are pretty strong right now.
    There's a lot of concern around the world, by the way, about 
America's retreat. They're wondering whether or not America is going to 
remain a leader. They're wondering whether or not, for example, will 
capital be welcomed back into our country. And so it's the ``isms'' that 
bother me--isolationism and protectionism.
    April [April Ryan, American Urban Radio Networks].

National Economy/Zimbabwe

    Q. Thank you, Mr. President.
    The President. Yes. You're looking good in yellow.
    Q. Thank you.
    The President. How's the baby?
    Q. She's good.
    The President. Good. Yes.
    Q. Thank you. You're trying to get me off.
    The President. No.
    Q. But it's okay.
    The President. Is it true you named her Georgia?
    Q. No. Is that okay with you?
    The President. It's your baby. [Laughter]
    Q. Anyway, moving on to the subject of the day, I talked to James 
Clyburn before this press conference. He said, ``As a man thinketh, so 
are we.'' And Americans believe we are in a recession. What will it take 
for you to say those words, that we are in a recession?
    And also, on Zimbabwe, what's the next step? And does South Africa 
play a part in that?
    The President. Yes, thank you. I've answered my--the question on the 
words and terminologies. I will tell you that these are

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very difficult economic times--very difficult. And we'll let the 
economists define it for what it is. I would hope that those who worry 
about recession, slowdown--whatever you want to call it--make the tax 
cuts permanent as a way of helping to address this issue. Because if 
you're somebody out there trying to plan your future and you're worried 
about the future and you think your taxes are going to go up, it's going 
to cause different behavioral patterns.
    Secondly, I do want to thank the Members of Congress. And the 
man you talked to is a leader and did a 
very good job of helping shepherd through this billions-of-dollar 
package that is now beginning to hit America's pocketbooks. And we'll 
see how that goes. I hope it's as stimulative as we think it will be. 
But you can tell the good man you talked to, who is a good guy, that I 
fully understand that people are concerned. And they're concerned about 
high gasoline prices. They're worried about high food prices, worried 
about staying in their homes.
    The new issue, of course, is student loans. The House of 
Representatives passed a bill that--sponsored by Mr. Miller, George Miller, that is a--that we think can do the 
job. I hope the Senate moves a version of it very quickly so that we can 
help address this issue. I mean, one of the things that Government can 
do is either create more anxiety or less. And if you think your taxes 
are going to go up, that's going to make you anxious. If you think the 
Government is going to step in with a good policy that will help your 
child get a student loan, that will make you less anxious.
    One of the things we've done on homeownership is the HOPE NOW 
Alliance, which, hopefully, makes people less anxious. Hopefully, it 
helps--has kind of brought some sense of not only concern but action 
into the marketplace. And I was told this morning that HOPE NOW has 
affected about 1.4 million homeowners and helped a lot of them 
refinance, get refinancing, or helped a lot of them get different 
interest payment schedules, all aiming for creditworthy people to be 
able to stay in their homes during this difficult period.
    Zimbabwe--first of all, the will of the people needed to be 
respected in Zimbabwe. And it is clear that they voted for change, as 
they should have, because the--Mr. Mugabe has 
failed the country. It's a country that used to be an exporter of food; 
it's now got terrible human conditions there.
    Secondly, the violence and the intimidation is simply unacceptable. 
The Government is intent upon--and is--intimidating the people there.
    We support the U.N. Security Council discussions that are going on. 
But the truth of the matter is, April--and you mentioned this--it's 
really incumbent upon the nations in the neighborhood to step up and 
lead and recognize that the will of the people must be respected and 
recognize that that will came about because they're tired of failed 
leadership.
    Thank you all for your interest. Enjoyed it.

Note: The President's news conference began at 10:31 a.m. in the Rose 
Garden at the White House. In his remarks, he referred to Prime Minister 
Fuad Siniora of Lebanon; President Mahmoud Abbas and Prime Minister 
Salam Fayyad of the Palestinian Authority; Prime Minister Ehud Olmert of 
Israel; and President Robert Mugabe of Zimbabwe. Reporters referred to 
former President Jimmy Carter; and Rep. James E. Clyburn.

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