[Weekly Compilation of Presidential Documents Volume 39, Number 24 (Monday, June 16, 2003)]
[Pages 738-739]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks Following a Cabinet Meeting and an Exchange With Reporters

June 9, 2003

    The President. I just met with my Cabinet, had the opportunity to 
brief them about my trip overseas. I talked about the visit to Poland 
and to Russia, where we've got good friends in both those countries, at 
least in terms of their leaders.
    And then I went to the G-8 in Evian, France. The message there was, 
is that America and Europe can do a lot together. We can make the world 
more peaceful. We can make the world more free. We can work together to 
help fight the pandemic of AIDS in Africa. There's a lot we can do 
together. We need to put our differences in the past and combine our 
efforts. We can do--trade together so our people can find work. And I 
left feeling very good about our relations in Europe.
    Then I went to the Middle East and started the--started the march to 
peace. And I'm optimistic about our chances to bring a peaceful, free 
Palestinian state in existence, to live side by side with a secure 
Israel. We've got a lot of work to do, but I was pleased with the 
response of Prime Minister Sharon. He's a courageous leader, dedicated 
to the security of the Israeli people, as are we, but also recognizing 
that life can be better for the Palestinians.
    And I appreciate the leadership of Prime Minister Abbas, the new 
Prime Minister of the Palestinian Authority, who spoke eloquently and 
clearly about the need for the free world to fight off terror in order 
for a Palestinian state to emerge.
    And then I went over to Qatar, had a very good visit with Ambassador 
Bremer and General Tommy Franks, and we talked about the need for our 
coalition to continue to make steadfast progress in Iraq so that the 
people of Iraq will be able to eventually run themselves. And we are 
making steadfast progress.
    Finally, we talked about domestic matters. Secretary Snow briefed us 
on the economy. And we're optimistic about our economy, but we won't 
rest until we're certain that people who are looking for work and who 
want to work can find a job. The jobs-and-growth package passed by the 
Congress can be very beneficial to those who look for work.
    We also talked about the possibilities of Congress getting a good 
Medicare bill out. I will spend time this week discussing Medicare with 
the American people. Secretary Thompson briefed us on the progress being 
made by the Congress, and I want to thank the congressional leadership 
for showing the determination that's going to be necessary to get a good 
Medicare package out for America's seniors.
    I'm proud of my Cabinet. I want to thank them for their good work 
and really proud of the team we have put together here.
    I'll answer a few questions. Tom [Tom Raum, Associated Press], and 
then Patsy [Patricia Wilson, Reuters].

Middle East Peace Process

    Q. Mr. President, since you left the Middle East, there's been a new 
outbreak of violence; three main Palestinian militant groups have 
claimed responsibility for it. Prime Minister Abbas says he will not use 
force to control these groups, and Prime Minister Sharon has been 
criticized by rightwing members of his own party. Why are you so 
optimistic?
    The President. I'm optimistic because I was able to listen to the 
Prime Ministers of Israel and the Palestinian Authority talk about the 
need for peace and for a state.
    Listen, I recognize there's going to be extremes, particularly in 
the Palestinian territories, that want to blow up peace. But I think 
people are sick of it. The average Palestinian must understand that 
their lives will improve with the vision of Prime Minister Abbas. And 
the Arab neighborhood understands that violence will lead to nothing 
except misery and the lack of hope. And so I'm optimistic that 
responsible leaders have now got the message that we must combine to 
work to fight off the terror attacks so that a peaceful Palestinian 
state can emerge.
    And I understand there's going to be a lot of work to do, but I'm 
prepared to lead. And we're sending a team in place. Ambassador Wolf 
will be on the ground soon, holding people to account and working to 
strengthen Prime Minister Abbas so that he can deliver on his promise, a 
promise he made not only

[[Page 739]]

to me personally but a promise he made to the Israeli officials. And the 
promise was, is that he will work as hard as he can to fight off those 
elements within the territories that want to use violence to destroy any 
hope for peace and, therefore, use violence to destroy the hopes of the 
Palestinian people.
    Patsy.

Iraqi Weapons of Mass Destruction

    Q. Sir, is U.S. credibility on the line over weapons of mass 
destruction in Iraq?
    The President. I'm not exactly sure what that means. I mean, Iraq 
had a weapons program. Intelligence throughout the decade showed they 
had a weapons program. I am absolutely convinced with time we'll find 
out that they did have a weapons program. The credibility of this 
country is based upon our strong desire to make the world more 
peaceful--and the world is now more peaceful after our decision; the 
strong desire to make sure free nations are more secure--our free 
nations are now more secure; and the strong desire to spread freedom. 
And the Iraqi people are now free and are learning the habits of freedom 
and the responsibilities that come with freedom.
    I read a report that somehow, you know, that there is no Al Qaida 
presence in Baghdad. I guess the people who wrote that article forgot 
about Al Zarqawi's network inside of Baghdad that ordered the killing of 
a U.S. citizen named Foley. And history will show, history--time will 
prove that the United States made the absolute right decision in freeing 
the people of Iraq from the clutches of Saddam Hussein.
    Keil [Richard Keil, Bloomberg News], last question.

U.S. Policy on the Dollar

    Q. Sir, do you have anything for us on the dollar? It continues to 
slide.
    The President. Yes.
    Q. The rhetoric continues to be that we favor a strong dollar 
policy, but there doesn't seem to be much of anything helping to prop it 
up.
    The President. The policy of this Government is a strong dollar 
policy. I spent time talking about the--our dollar policy at the G-8. 
And I reminded our G-8 partners that there is a difference in interest 
rates, particularly between Europe and the United States, and that 
interest rate differential has caused people to sell dollars to buy 
euros to get a higher return on investment. And that's why you're seeing 
pressure on the dollar.
    And of course, the European Union is--like the United States, has 
got an independent organization that sets monetary policy. But you'll 
see a--you'll see different behavior as interest rate spreads begin to 
narrow between Europe and the United States.
    But I'll repeat as clearly as I can, the policy of the United States 
Government is a strong dollar policy.
    Thank you all.

Note: The President spoke at 10:45 a.m. in the Cabinet Room at the White 
House. In his remarks, he referred to Prime Minister Ariel Sharon of 
Israel; Prime Minister Mahmoud Abbas (Abu Mazen) of the Palestinian 
Authority; L. Paul Bremer III, Presidential Envoy to Iraq: Gen. Tommy R. 
Franks, USA, combatant commander, U.S. Central Command; Assistant 
Secretary of State for Nonproliferation John S. Wolf; Abu Musab Al 
Zarqawi, senior Al Qaida associate; and former President Saddam Hussein 
of Iraq.