[Weekly Compilation of Presidential Documents Volume 39, Number 8 (Monday, February 24, 2003)]
[Pages 214-216]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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 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.]

[[Page 215]]

    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 Resolution

    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 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

[[Page 216]]

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 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. 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.