    [Weekly Compilation of Presidential Documents Volume 40, Number 13 (Monday, March 29, 2004)]
    [Pages 447-448]
    [Online from the Government Publishing Office, www.gpo.gov]

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

    March 23, 2004

        The President. Thank you all for coming. We've just had a very
    constructive Cabinet meeting. We talked about the need for us to remain
    strong in the war on terror. I assured our--my team that America is not
    going to blink in the face of the attacks that took place in Spain. As a
    matter of fact, we'll continue to rally the world to fight off terror.
        Here at home, my economic advisers, economic team presented a very
    upbeat assessment about our economy. It's strong, and it's growing
    stronger. Inflation is low. Interest rates are low. Manufacturing
    activity is up. The job base is growing. There's a lot of signs that the
    economic plan we put in place are working. There's more work to do.
        In order to make sure the economy continues to grow, in order to
    fight off economic isolationism, we've got to work to control the cost
    of health care, which makes it awfully difficult for many small
    businesses to provide health care for their employees. We need an energy
    plan. The Secretary of Energy discussed the need for an energy plan. We
    need to make sure that we have legal reform. Junk and frivolous lawsuits
    make it awfully difficult for people to find work here in the United
    States. We need to make sure that the regulations at the Federal, State,
    and local level are absolutely necessary. And finally, we need to make
    sure the tax cuts are permanent. Tax relief has stimulated economic
    growth, and they need to be permanent. And I call upon Congress once
    again to, at the very least, make sure the child credit, the marriage
    penalty, and the 10-percent bracket are made permanent now so that
    people can plan--consumers can plan and small-business owners can plan.
        But I'm pleased with the report I received. I'm pleased with the
    progress. There is more work to do. I look forward to working with
    Congress to get it done.
        I'll answer two questions here today. Tom [Tom Raum, Associated
    Press], wherever you are.
        Q. Mr. President, over here.
        The President. Yes, right there.

    Counterterrorism Efforts

        Q. Mr. President, there's been a lot of attention over the last
    couple days to a book written by your former counterterrorism adviser
    that suggests that you understated the threat of Al Qaida before
    September 11th and then rushed to blame Iraq after the terror attacks.
    Is there any basis at all in any of these allegations? And do you agree
    with the Republican Senator Chuck Hagel that the White House needs to
    take these charges more seriously and not just undermine Mr. Clarke's
    credibility?
        The President. Well, the facts are these: George Tenet briefed me on
    a regular basis about the terrorist threats to the United

    [[Page 448]]

    States of America, and had my administration had any information that
    terrorists were going to attack New York City on September the 11th, we
    would have acted. We have been chasing down Al Qaida ever since they
    attacked. We've captured or killed two-thirds of their known leaders.
    And we're still pursuing them, and we will continue to pursue them so
    long as I am the President of the United States.
        I want to thank the troops involved. We've got a couple of thousand
    troops involved in Afghanistan that are hunting down Al Qaida in that
    part of the world. We've got intelligence officers all over the world
    collecting information so that we can act. We've got a strong network of
    cooperative governments trying to chase down terrorist money and to
    prevent that money from being spread around to cause harm.
        I was on the phone today to Gerhard Schroeder, reminding them that
    we need to stay strong in the fight on terror. And I appreciated his
    strong comments today by phone, that he fully understood the stakes.
    We're making progress. There is more work to do. And this country will
    stay on the hunt. The best way to protect our country from further
    attack is to find the terrorists before they come to our homeland or
    anywhere else to inflict harm.
        Steve [Steve Holland, Reuters].

    Hamas Threats/Middle East Peace Process

        Q. Yes, sir. Thank you, sir. Are you worried about the threat from
    Hamas to attack U.S. targets over Israel's killing of Sheik Yassin? And
    were you troubled by his killing?
        The President. Yes, I'm worried about terrorist groups targeting
    America. And we take every threat seriously in this administration.
    Nearly every morning that I come to work, I talk to George Tenet, FBI
    Director Mueller, and others about the threats to the United States. And
    there's still serious threats because of what we stand for. There are
    still people who want to harm our country. And so, whether it be an
    Hamas threat or an Al Qaida threat, we take them very seriously in this
    administration.
        As far as the Middle East, it's a troubled region, and the attacks
    were troubling. There needs to be a focused, concerted effort by all
    parties to fight terror. Any country has a right to defend itself from
    terror. Israel has the right to defend herself from terror. And as she
    does so, I hope she keeps consequences in mind as to how to make sure we
    stay on the path to peace. This administration is committed to finding a
    two-state solution--a two-state solution for the good of Israel, a two-
    state solution for the good of the Palestinian people. To this end, if
    the circumstances on the ground allow, I'll be sending a team back out
    to the Middle East next week to see if we can't keep the process alive,
    the process toward peace.

    Note: The President spoke at 2:05 p.m. in the Cabinet Room at the White
    House. In his remarks, he referred to Chancellor Gerhard Schroeder of
    Germany. Reporters referred to Richard A. Clarke, former National
    Coordinator for Transnational Threats at the National Security Council;
    and Sheik Ahmed Yassin, founder of the Hamas terrorist organization, who
    was killed in an Israeli missile attack in Gaza City on March 22.