[Weekly Compilation of Presidential Documents Volume 41, Number 4 (Monday, January 31, 2005)]
[Pages 84-95]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
The President's News Conference

January 26, 2005

    The President. Good morning. With the second term underway and a new 
Congress at work, we're moving forward on great goals for our country. 
In my Inaugural Address I renewed this Nation's commitment to expanding 
liberty at home and promoting liberty abroad.
    Because our own freedom is enhanced by the expansion of freedom in 
other nations, I set out the long-term goal of ending tyranny in our 
world. This will require the commitment of generations, but we're seeing 
much progress in our own time. In late 2004, the people of Afghanistan 
defied the threats of terrorists and went to the polls to choose their 
leaders. The Palestinian people have elected a President who has 
renounced violence. This week, Ukraine inaugurated a new President, 
President Yushchenko. And just 4 days from now, the people of Iraq will 
vote in free national elections.
    Terrorists in that country have declared war against democracy, 
itself, and thereby declared war against the Iraqi people, themselves. 
Yet the elections will go forward. Millions of Iraqi voters will show 
their bravery, their love of country, and their desire to live in 
freedom. Across the world, freedom has deadly enemies, yet across the 
world, freedom has great and growing momentum.
    There has been enormous sacrifices made by some of our citizens in 
the spread of freedom. Families suffer as the result of the loss of a 
loved one. We continue to offer our condolences and prayers for those 
who do suffer. We'll honor the memories of their loved ones by 
completing our missions.
    Next week, I will report to Congress on the State of the Union and 
describe in more detail a legislative agenda to serve the goals I have 
outlined. I will ask the House and Senate to act soon on the issue of 
Social Security, so that we don't pass a bankrupt system on to our 
children and our grandchildren. I'm open to good ideas from Members of 
Congress. I'll work with both parties to get results. Any solution must 
confront the problem fully and directly by making the system permanently 
solvent and providing the option of personal accounts.
    For this new term, I've assembled an exceptional Cabinet, and 
several members are taking office this week. In addition to speedy 
action on all my nominees, I especially urge the Senate to confirm 
Condoleezza Rice today and to promptly act and confirm Judge Al 
Gonzales.
    We have a full agenda. I'm looking forward to the work ahead. And 
now I'm looking forward to answering some of your questions. Terry 
[Terence Hunt, Associated Press].

[[Page 85]]

Upcoming Iraqi Elections

    Q. Mr. President, the insurgents in Iraq are threatening to kill 
anyone who comes out to vote on Sunday. Do you think they'll succeed in 
killing or scaring away enough people so that the elections will be 
rendered seriously flawed or not credible?
    The President. We anticipate a lot of Iraqis will vote. Clearly, 
there are some who are intimidated. Surveys show that the vast majority 
of people do want to participate in democracy, and some are feeling 
intimidated. I urge all people to vote. I urge people to defy these 
terrorists. These terrorists are--do not have the best interests of the 
Iraqi people in mind. They have no positive agenda. They have no clear 
view of a better future. They're afraid of a free society.
    I am impressed by the bravery of the Iraqi citizens. I am heartened 
by the strong words of Prime Minister Allawi. I talked to him yesterday 
on the phone. He is determined to lead his country forward into the 
elections. I appreciate the hard work of the United Nations, which is 
providing good leadership on the ground. And I anticipate a grand moment 
in Iraqi history. If we'd been having this discussion a couple of years 
ago and I'd have stood up in front of you and said the Iraqi people 
would be voting, you would look at me like some of you still look at me, 
with a kind of blank expression. People are voting, and this is a part 
of a process, to write a constitution and then elect a permanent 
assembly. And it's exciting times for the Iraqi people.
    Steve [Steve Holland, Reuters].
    Q. Can I ask a followup, sir? What would be a credible turnout 
number?
    The President. The fact that they're voting, in itself, is 
successful. Again, this is a long process. It is a process that will 
begin to write a constitution and then elect a permanent assembly. And 
this process will take place over this next year. It is a grand moment 
for those who believe in freedom.

Foreign Policy Goals in Inaugural Address

    Q. Sir, your Inaugural Address has been interpreted as a new, 
aggressive posture against certain countries, in particular Iran. Should 
we view it that way?
    The President. My Inaugural Address reflected the policies of the 
past 4 years that said--that we're implementing in Afghanistan and Iraq, 
and it talked about a way forward. I think America is at its best when 
it leads toward an ideal, and certainly, a world without tyranny is an 
ideal world. The spread of freedom is important for future generations 
of Americans. I firmly believe that free societies are peaceful 
societies, and I believe every person desires to be free. And so I look 
forward to leading the world in that direction for the next 4 years.
    Q. Do you see it as a policy shift?
    The President. No, as I said, it reflects the policy of the past, 
but it sets a bold new goal for the future. And I believe this country 
is best when it heads toward an ideal world. We are at our best. And in 
doing so, we're reflecting universal values and universal ideas that 
honor each man and woman, that recognize human rights and human dignity 
depends upon human liberty. And it's--I'm looking forward to the 
challenge, and I'm looking forward to reaching out to our friends and 
allies to convince them of the necessity to continue to work together to 
help liberate people.
    Yes, Terry [Terry Moran, ABC News].

Arrest in Jordan/Human Rights

    Q. Mr. President, let me take you up on that, if I may. Last month 
in Jordan, a gentleman named Ali Hattar was arrested after delivering a 
lecture called ``Why We Boycott America.'' He was charged under section 
191 of their penal code for slander of Government officials. He stood up 
for democracy, you might say. And I wonder if here and now, you will 
specifically condemn this abuse of human rights by a key American ally. 
And if you won't, sir, then what, in a practical sense, do your fine 
words mean?
    The President. I am unaware of the case. You've asked me to comment 
on something that I didn't know took place. I urge my friend His Majesty 
to make sure that democracy continues to advance in Jordan. I noticed 
today that he put forth a reform that will help more people participate 
in future governments of Jordan. I appreciate His Majesty's 
understanding of the need for democracy to advance in the greater Middle 
East.

[[Page 86]]

We visited with him at the G-8, and he has been a strong advocate of the 
advance of freedom and democracy.
    Now--let me finish. Obviously, we're discussing a process. As I said 
in my speech, not every nation is going to immediately adopt America's 
vision of democracy, and I fully understand that. But we expect nations 
to adopt the values inherent in a democracy, which is human rights and 
human dignity, that every person matters and every person ought to have 
a voice. And His Majesty is making progress toward that goal.
    I can't speak specifically to the case. You're asking me to speak 
about a case that I don't know the facts.
    Q. Fair enough. If I could just follow up. Will you then--does your 
Inaugural Address mean that when it comes to people like Mr. Hattar, you 
won't compromise because of a U.S. ally, and you will stand----
    The President. Again, I don't know the facts, Terry. You're asking 
me to comment on something; I do not know the facts. Perhaps you're 
accurate in your description of the facts, but I have not seen those 
facts. Now, nevertheless, we have spoken out in the past and we'll 
continue to speak out for human rights and human dignity and the right 
for people to express themselves in the public square.

Secretary of State-Designate Rice

    Q. Mr. President, in the debate over Dr. Rice's confirmation, 
Democrats came right out and accused you and the administration of lying 
in the runup to the war in Iraq. Republicans, in some cases, conceded 
that mistakes have been made. Now that the election is over, are you 
willing to concede that any mistakes were made? And how do you feel 
about----
    The President. Let me talk about Dr. Rice--you asked about her 
confirmation. Dr. Rice is an honorable, fine public servant who needs to 
be confirmed. She will be a great Secretary of State. And Dr. Rice and I 
look forward to moving forward. We look forward to working to make sure 
the Iraqis have got a democracy. We look forward to continuing to make 
sure Afghanistan is as secure as possible from potential Taliban 
resurgence. We look forward to spreading freedom around the world. And 
she is going to make a wonderful Secretary of State.
    Q. No reaction to the lying? No reaction? [Laughter]
    The President. Is that your question? The answer is no.
    Next.

U.S. Super Stallion Helicopter Crash in Iraq

    Q. I'd like to ask you--sir, I'd like to ask you about the deficit. 
But before I do that, there is a developing story this morning--the 
helicopter crash in Iraq. Can you tell us what you know about that, what 
may have caused it, and your reaction to it?
    The President. I know that it's being investigated by the Defense 
Department. And obviously, any time we lose life, it is a sad moment.
    Q. Don't know whether it was weather-related or not----
    The President. Not yet. I've heard rumors, but I'll wait 'til the 
facts.

Taxes/Federal Deficit

    Q. You're preparing to ask Congress for an additional $80 billion in 
war spending in Afghanistan and Iraq. The White House is also prepared 
to predict a budget deficit of $427 billion for this year. You talk 
about sacrifice in this country. Do you think that you're really asking 
Americans to sacrifice financially when you're asking them to fund the 
war, yet, at the same time, perhaps pay an exorbitant amount to set up 
private accounts in Social Security, pay for a prescription drug 
benefit, as well as other spending plans?
    The President. So the----
    Q. And tax cuts, to make those permanent? It's a lot of money.
    The President. Okay, let me see if I can dissect your question into 
separate parts. First, Americans pay a lot of taxes. They pay tax at the 
Federal level. They pay tax at the State level. They pay tax at the 
local level. Americans do pay taxes.
    Secondly, I made the commitment to our troops, we'll fund them. And 
that's exactly what we're doing. We've got people in harm's way; I look 
forward to working with Congress

[[Page 87]]

to fund what is necessary to help those troops complete their mission.
    Thirdly, we have presented a plan in the past, and we'll present one 
here next--earlier--later on this--in February that will show we will 
cut the deficit in half. And it's obviously going to require cooperation 
with the United States Congress to make some very difficult decisions 
when it comes to funding the budgets.
    Fourthly, we not only were attacked and needed--therefore, needed to 
defend ourselves, we also had a recession. And I felt it was very 
important to reduce the tax burden on the American people to get out of 
the recession. In other words, we were dealing with twin problems. And 
because of the tax relief, our economy is growing forward.
    Last year at this time, the projected budget was $527 billion. You 
might remember that. It turned out that the budget was 412 billion for 
last year. Now the budget is projected to be at 427 billion. We look 
forward to working to hold the line with the United States Congress on 
spending. And as I say, I'll promote a package that will show the budget 
being cut in half over the next 5 years.
    John [John King, Cable News Network].

War in Iraq

    Q. Mr. President, I want to try another way to ask you about Iraq. 
When you made the decision to go to war in Iraq, you clearly had 
majority support in the country. A string of recent polls have shown a 
clear majority of the American people now believe it was a mistake to go 
to war in Iraq. You've asked for $80 billion in more money on top of the 
billions already spent. The Army says that we'll probably have 100,000 
or more troops in Iraq for at least another year. What would you say to 
the American people, including a significant number who supported you at 
the beginning of the war, who now say this is not what we were led to 
believe would happen?
    The President. A couple of things, John. I'd say the world is better 
off without Saddam Hussein in power. A world with Saddam Hussein in 
power would have been a more dangerous world today. Secondly, that we're 
making progress in helping Iraq develop a democracy. And in the long 
term, our children and grandchildren will benefit from a free Iraq.
    In terms of troop levels, obviously we'll have the troop levels 
necessary to complete the mission. And that mission is to enable Iraq to 
defend herself from terrorists, homegrown or terrorists that come in 
from outside of the country. And so our mission is focused on not only 
an increase in the number of Iraqis in uniform, whether it be Army or 
National Guard or border patrol or police, but to make sure the quality 
of their ability to fight is enhanced. And so, over the next year we'll 
be advancing our plan to make sure the Iraqis are better prepared to 
defend themselves and to fight. There's been some really fine units that 
have been stood up so far, and obviously we want to make sure there are 
more units that are capable of fighting.
    Listen, this problem will eventually be solved when the Iraqis take 
the initiative and the Iraqi people see Iraqi soldiers willing to defend 
them. And so--and the American people, when they see the Iraqis step up 
and begin to fight, will see progress being made toward an objective 
which will make this world a better place.
    I don't want to rehash something that I'm sure you got tired of 
hearing me talk about on the campaign trail, but it is--the decisions we 
make today can affect how people live 30, 40, or 50 years from now. And 
I bring up, once again, my example about working with Prime Minister 
Koizumi of Japan. And it wasn't all that long ago that Japan was a 
bitter enemy. And today, because Japan is a democracy and a free 
country, the Japanese are strong allies with the United States of 
America, and we're better off for it.
    And listen, the story today is going to be very discouraging to the 
American people. I understand that. We value life. And we weep and mourn 
when soldiers lose their life. And--but it is the long-term objective 
that is vital, and that is to spread freedom. Otherwise, the Middle East 
will be--will continue to be a caldron of resentment and hate, a 
recruiting ground for those who have this vision of the world that is 
the exact opposite of ours.
    Carl [Carl Cameron, FOX News], welcome to the beat. Is everybody 
thrilled Carl is here?

[[Page 88]]

    Q. Yes. [Laughter]
    Q. Thanks very much.
    The President. Please express a little more enthusiasm for him. 
[Laughter]

Social Security

    Q. A question on Social Security, if we may, sir. There has been, as 
you work forward to making final--your ultimate proposal, growing 
concern among Republicans on Capitol Hill. We had Chairman Thomas last 
week with some concern about the process, and Senator Olympia Snowe on 
the other side suggesting that she's concerned about an absentee--
guaranteed benefit, excuse me. Are you prepared today to say that those 
who opt into a potential private account--personal account could in fact 
have a guaranteed benefit as well? And what do you say to Republicans 
who are beginning to worry?
    The President. I am looking forward to working with both Republicans 
and Democrats to advance a plan that will permanently solve Social 
Security.
    There is--I met yesterday with Members of the United States Senate. 
I'm meeting today with Members of the House of Representatives to 
discuss the need to work together to get a solution that will fix the 
problem. And here's the problem: The--as dictated by just math, there 
is--the system will be in the red in 13 years, and in 2042 the system 
will be broke. That's because people are living longer and the number of 
people paying into the Social Security trust is dwindling. And so, 
therefore, if you have a child--how old is your child, Carl?
    Q. Fourteen years old.
    The President. Yes, 14. Well, if she were----
    Q. He, sir.
    The President. He, excuse me. [Laughter] I should have done the 
background check. [Laughter] She will--when she gets ready to--when 
she's 50, the system will be broke, if my math is correct. In other 
words, if you have a child who is 25 years old, when that person gets 
near retirement, the system will be bankrupt. And therefore, it seems 
like to me--and if we wait, the longer we wait, the more expensive the 
solution. So therefore, now is the time to act.
    And Social Security has been an issue that has made people nervous. 
I understand that. I mean, it's--people felt like it was the third rail 
of American politics. That means if you touch it, you will have--it will 
be political death. I have said to the American people that our job is 
to confront issues and not pass them on. And we have a serious issue 
with Social Security. The math shows that we have an issue, and now is 
the time to come together to solve it. And so--what you're hearing a 
little bit is whether or not it is worth the political price. I think it 
is. And I'm looking forward to leading the Congress, and I'm looking 
forward to taking the case to the American people.
    I will begin--``begin''--I will continue that process with the State 
of the Union Address. And then I look forward to taking off shortly 
thereafter and traveling around the country discussing this issue, 
similar to what President Clinton did. President Clinton highlighted the 
issue as an issue that needed to be addressed and an issue that needed 
to be solved. He fully recognized, like I recognize, that it's going to 
require cooperation in the House and the Senate. And in anticipation of 
this moment, obviously--you might remember we brought together a 
distinguished group of our citizens to analyze the issue, and they came 
forth with some very interesting ideas.
    As well it is very important for us to reassure the seniors that 
nothing changes. I fully understand the power of those who want to 
derail a Social Security agenda by scaring people. It's been a tactic 
for a long period of time by those who believe the status quo is 
acceptable. And so one of the things you'll hear me constantly doing is 
reminding our senior citizens that nothing will change and that we have 
a duty to act on behalf of their children and grandchildren.
    David [David Sanger, New York Times], and then Baker [Peter Baker, 
Washington Post].

Foreign Policy Goals in Inaugural Address

    Q. Mr. President, if I could return for a moment to your Inaugural 
Address. Dr. Rice referred in her testimony to ``six outposts of 
tyranny,'' countries where we clearly, I think,

[[Page 89]]

have a pretty good idea of your policies. What we're confused by right 
now, I think, or at least what I'm confused by, is how you deal with 
those countries like Russia, China, Saudi Arabia, with whom we have 
enormous broad interests. Should the leaders of those countries now be 
on notice that the primary measure of their relationship with the United 
States should be their progress toward liberty? Or can they rest assured 
that, in fact, you've got this broad agenda with them and you're willing 
to measure liberty up against what China does for you on North Korea, 
what Russia does for you in other areas?
    The President. I don't think foreign policy is an either/or 
proposition. I think it is possible, when you're a nation like the 
United States, to be able to achieve both objectives--one objective, the 
practical objective of dealing, for example, as you mentioned, with 
North Korea. But I--in my meetings with Chinese leadership in the past 
and my meetings with Chinese leadership in the future, I will constantly 
remind them of the benefits of a society that honors their people and 
respects human rights and human dignity. I have--for example, in 
meetings with the Chinese in the past, I have brought up the Dalai Lama. 
I've brought up concerns of the Catholic Church. I have discussed my 
belief that a society that welcomes religious freedom is a wholesome 
and--religious freedom is a part of a wholesome society and an important 
part of a society.
    Vladimir Putin--I have discussed with Vladimir Putin some of his 
decisions. I will continue--as you might remember in our meeting in 
Chile. I will continue to do so. I will remind him that if he intends to 
continue to look West, we in the West believe in Western values.
    I--democracy is a--progress--you'll see progress toward a goal. 
There won't be instant democracy. And I remind people that our own 
country is a work in progress. We declared all people equal, and yet, 
all people weren't treated equally for a century. We said, ``Everybody 
counts,'' but everybody didn't count.
    And so I fully understand developing a democratic society in the--
adhering to the traditions and customs of other nations will be a work 
in process. That's why I said we're talking about the work of 
generations. And so in my talks, in my discussions with world leaders to 
solve the problem of the day, I will constantly remind them about our 
strong belief that democracy is the way forward.
    Yes, Peter.

Promoting Democracy

    Q. Mr. President, Dr. Rice--again quoting your future Secretary of 
State--wrote in Foreign Affairs magazine in 2000, outlining what a 
potential Bush administration foreign policy would be, talked about 
things like security interests, free trade pacts, confronting rogue 
nations, dealing with great powers like China and Russia, but promotion 
of democracy and liberty around the world was not a signature element of 
that prescription. I'm wondering what's changed since 2000 that has made 
this such an important element of your foreign policy.
    The President. I'm the President. I set the course of this 
administration. I believe freedom is necessary in order to promote 
peace, Peter. I haven't seen the article you're referring to. I can 
assure you that Condi Rice agrees with me that it's necessary to promote 
democracy. I haven't seen the article. I didn't read the article. 
Obviously, it wasn't part of her job interview. [Laughter] Condi is a 
firm believer in democracy.
    Yes, sir.

Social Security/Tax Reform

    Q. Mr. President, Chairman Thomas and some others on the Hill have 
suggested taking up tax reform at the same time that you deal with 
Social Security reform and to consider alternatives, such as a value-
added tax, to the current payroll tax for financing Social Security. Are 
you willing to consider combining those two big projects, or do you 
prefer to keep them on separate tracks?
    The President. I look forward to working with the Congress to move 
the process forward. I appreciate people bringing forth ideas. I think 
it is a constructive part of the process. I'll have my own--I'll be a 
little more specific as time goes on and perhaps at the State of the 
Union, talking about how to--how I think we can have a real, long-term 
solution.

[[Page 90]]

    But I think it's constructive that Chairman Thomas, who will be 
charged with having a bill come out of the Ways and Means, is thinking 
creatively, is willing to figure out ways to bring people along. I am--
and you'll find, as this process unfolds, that there will be a lot of 
different suggestions, some of them valid, some of them not valid. But 
the idea that people are bringing forth ideas is a really good sign.
    The threshold question is, will Congress--is Congress willing to say 
we have a problem? We do have a problem. The math shows we have a 
problem. And now is the time to act on that problem. And once people 
realize there's a problem, then I believe there's an obligation for all 
sides to bring forth ideas. And that's what you're seeing with Chairman 
Thomas. And I appreciate that. I'm looking forward to my visit with him 
this afternoon.
    Yes, sir.

Attorney General-Designate Gonzales

    Q. Mr. President, I'd like to ask you about the Gonzales nomination 
and specifically about an issue that came up during it, your views on 
torture. You've said repeatedly that you do not sanction it; you would 
never approve it. But there are some written responses that Judge 
Gonzales gave to his Senate testimony that have troubled some people, 
and specifically his allusion to the fact that cruel, inhumane, and 
degrading treatment of some prisoners is not specifically forbidden so 
long as it's conducted by the CIA and conducted overseas. Is that a 
loophole that you approve?
    The President. Listen, Al Gonzales reflects our policy, and that is, 
we don't sanction torture. He will be a great Attorney General, and I 
call upon the Senate to confirm him.

Social Security

    Q. Mr. President, at the beginning of your remarks today you 
referred to two criteria that you're looking for on the Social Security 
fix, namely permanent solvency and personal accounts. Does that mean 
that you would be willing to consider some changes that might broaden 
the base of revenues for the system as a way of addressing solvency?
    The President. I look forward to a fruitful discussion of all ideas, 
with the exception of raising the payroll tax.
    Judy [Judy Keen, USA Today].

Director of National Intelligence

    Q. Thank you, Mr. President. Sir, can you update us, please, on your 
search for a Director of National Intelligence? Are you having trouble 
finding the right person? And do you worry at all that the delay might 
suggest to some people that it's not a high priority for you?
    The President. When the bill looked like it wasn't going to pass, we 
weighed in to get it passed, and we worked with members of both parties 
to get a bill out of the Congress. It's clearly a high priority. It is a 
priority for us to make sure that I get the very best intelligence in 
order to make wise decisions for the American people. And a search goes 
on to find the right person to handle this very sensitive position.
    We're dealing with a brand new agency that is going to require a--
somebody with extraordinary experience. And we're looking. And no one 
should read anything other than, we want to make sure we make the right 
choice.
    Yes, ma'am.

Social Security

    Q. Thank you, sir. Any--back on Social Security--any transition to 
personal accounts is estimated to cost between 1 to 2 trillion dollars 
over 10 years. Without talking about specific proposals, do you plan to 
borrow that money, or will you, when your plan comes out----
    The President. You're asking me to talk about specific proposals. 
And I'm looking over----
    Q. ----will you be able to pay for it, though?
    The President. Over the--I fully understand some people are 
concerned about whether or not this is affordable. And at the 
appropriate time, we'll address that aspect of reform. But personal 
accounts are very important in order to make sure that young workers 
have got a shot at coming close to that which the Government promises. 
They're also important because a personal

[[Page 91]]

account, obviously under strict guidelines of investment, will yield a 
better rate of return over--than the money--the person's money is 
earning in the Social Security trust. And personal accounts will enable 
a worker to be able to pass on his or her ownings to whoever he or she 
chooses, which is an important part of promoting an ownership society. 
We want people to own and manage their own assets. After all, it is 
their own money.
    And so it's a very important part, in my judgment, of reforming the 
system permanently. But there--I fully understand that accounts is not 
the only thing that will be necessary to make sure the system is 
permanently secure.
    Ken [Ken Herman, Austin American-Statesman]. Welcome. Is this--let 
me ask you, are you here temporarily, permanently, and who do you 
represent?
    Q. Well, that will be up to my wife, sir, as you well know.
    The President. Yes, thank you.
    Q. Mr. President, on Social Security, you say the math clearly 
shows--as you know, most of us became reporters because of our deep 
affection for math. If the math clearly shows it, why are you having so 
much trouble on the Hill getting some to share your urgency? Do you 
think they're looking at the numbers differently, honestly, or are they 
running from the third rail?
    The President. Glad to have you here. [Laughter] I am going to 
continue to speak directly to the American people about this issue and 
remind them about the math and remind them that if you're a senior, 
nothing changes, and speak to the younger folks coming up about the 
forecasts. I mean, if you're a 20-year-old person and you look at the 
math, you realize that you will inherit a bankrupt system, which means 
either there will be significant benefit cuts or significant payroll tax 
increases in order to fund that which the Government has laid out for 
you as a part of your retirement. And the Congress tends to listen to 
the people. And so I will continue to speak to the people and, at the 
same time, reach out to members of both parties.
    We have been through these kinds of questions before, in my early 
press conferences. I can remember--I can't remember exactly the 
questions, but I do remember the tone, about people saying, ``How can 
you possibly get tax cuts through the Congress when so-and-so said that 
they shouldn't be done,'' or ``Such-and-such said this,'' or ``This 
report said that,'' or ``The American people didn't want this.'' And so 
I am heartened by past experiences to believe that it is possible to do 
big things in Washington, DC. And I look forward to working with Members 
of the Congress to achieve big, notable reform.
    Yes, Ken, followup. This is a home-boy followup.
    Q. I seem to remember a time in Texas on another problem, taxes, 
where you tried to get out in front and tell people, ``It's not a crisis 
now; it's going to be a crisis down the line.'' You went down in flames 
on that one. Why----
    The President. Actually, I--if I might. [Laughter] I don't think a 
billion dollar tax relief that permanently reduced property taxes on 
senior citizens was ``flames,'' but since you weren't a senior citizen, 
perhaps that's your definition of ``flames.''
    Q. I never got my billion----
    The President. Yes. Because you're not a senior citizen yet--acting 
like one, however. Go ahead. [Laughter]
    Q. What is there about Government that makes it hard----
    The President. Faulty memory. [Laughter]
    Q. ----to address things in advance, before it's a crisis?
    The President. Do we have a crisis in Texas now on school property 
taxes?
    Q. Yes, we do.
    The President. Thank you.
    Q. Are you going to put forward your own plan on Social Security, or 
not?
    Q. Mr. President----
    The President. Let's get some order here, please.
    Q. Mr. President----
    The President. April [April Ryan, American Urban Radio Networks]. 
Abril.

Iraq

    Q. Thank you, Mr. President. First of all, I have two questions, one 
on Iraq. You say about the troop withdrawal----
    The President. No, no, I said what?

[[Page 92]]

    Q. No, I'm going to the question--to the answer----
    The President. I thought you said on troop withdrawal----
    Q. I'm--yes, I'm talking about troop withdrawal. Don't mess me up, 
now. [Laughter]
    You said in a response just now that it depends on the initiative of 
the Iraqis. Are you giving the Iraqis a timetable for what you're going 
to do with troop withdrawal and when?
    The President. We will complete the mission as quickly as possible. 
And that mission of a secure and stable Iraq will be achieved when the 
Iraqis are fighting the former regime elements and people like Zarqawi. 
Therefore, the--it is important that we continue to press forward with 
proper training. Now, training means not just signing people up. 
Training means equipping and preparing them for tough fights as well as 
developing a chain of command. A good military requires a chain of 
command from top to bottom, so that orders and plans and strategies can 
be effected efficiently. And we have work to do there, and we will do 
the work.
    Second question.

Race Relations/Civil Rights

    Q. Second question, on race. You brought it up in the Inaugural 
Address, and yesterday and today you have black leaders here at the 
White House discussing issues of race. Yesterday you didn't discuss 
civil rights. But where are you in the second term as it relates to race 
in America?
    The President. Civil rights is a good education. Civil rights is 
opportunity. Civil rights is homeownership. Civil rights is owning your 
own business. Civil rights is making sure all aspects of our society are 
open for everybody. And we discussed that yesterday. And I believe that 
what I said was important, that we've got to shed ourselves of bigotry 
if we expect to lead by example. And I'll do the very best I can as the 
President to make sure that the promise--and I believe in the promise of 
America--is available for everybody.
    Let's see. Hold on for a second--Mark [Mark Knoller, CBS Radio]. The 
person who doesn't yell will be called on.

Armstrong Williams/Independent Press

    Q. Mr. President, do you think it's a proper use of Government funds 
to pay commentators to promote your policies?
    The President. No.
    Q. Are you going to order that----
    The President. Therefore, I will not pay you to--[laughter].
    Q. Fair enough. Are you ordering that there be an end to that 
practice?
    The President. Yes, I am. I expect my Cabinet Secretaries to make 
sure that that practice doesn't go forward. There needs to be 
independence. And Mr. Armstrong Williams admitted he made a mistake. And 
we didn't know about this in the White House, and there needs to be a 
nice, independent relationship between the White House and the press, 
the administration and the press. So, no, we shouldn't be going for it.
    Yes, sir.
    Q. Well, Mr. Williams made a mistake----
    The President. Who?
    Q. Mr. Williams made a mistake; did the Department of Education make 
a mistake?
    The President. Yes. They did.
    Q. What will happen to the people that made this decision?
    The President. We've got new leadership going to the Department of 
Education. But all our Cabinet Secretaries must realize that we will not 
be paying commentators to advance our agenda. Our agenda ought to be 
able to stand on its own two feet. I'm confident you'll be, over the 
course of the next 4 years, willing to give our different policies an 
objective look--won't you? Yes, I can see that.
    Yes, sir.

National Economy/Legislative Agenda

    Q. Thank you. Senate Democratic leaders have painted a very bleak 
picture of the U.S. economy. Harry Reid was talking about soup lines, 
and Hillary Clinton was talking about the economy being on the verge of 
collapse. Yet, in the same breath, they say that Social Security is 
rock-solid and there's no crisis there. How are you going to work--you 
said you're going to reach out to these people--how are you going to 
work with people who

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seem to have divorced themselves from reality?
    The President. Continue to speak to the American people. Right after 
my State of the Union, I think I'm going to four or five States to 
continue to address this issue. You know, I can remember President 
Clinton doing the same thing on Social Security. I thought he was very 
effective in teeing up the issue, of making the case. And I will do the 
same thing.
    There is a--in terms of whether the economy is growing or not, there 
is a--the jobs are increasing; the forecast looks strong. Obviously, 
there are some things we need to do to make sure that America is a good 
place to continue to risk capital and invest. That's why I'm urging the 
Congress to pass legal reform. You might remember, one of the first 
issues that I addressed after election was legal reform, asbestos 
reform, class-action reform, medical liability reform. I believe if 
there is a--that we've got a chance to get some good, meaningful 
legislation out of the Congress early, which will send a good signal 
that we will address those issues that make--that stand in the way for 
further economic expansion. We need an energy bill, and I look forward 
to working with members of both parties to get a good energy bill out.
    Obviously, people in the capital markets are going to be watching 
the issue of twin deficits--on the one hand, the spending deficit, the 
fiscal deficit. We'll address that in our budget that we're getting 
ready to submit to Congress. Obviously, we're going to have to work 
closely together to send the signal that we're willing to tackle some 
tough issues. The budget I'll be submitting is one that says, ``We'll 
spend money on projects that work, but we must make sure we're not 
wasting the taxpayers' money.''
    In terms of the trade deficit, it is important for us to make sure 
that in countries that are--that countries treat their currencies in 
market fashion. I've been working with China, in specific, on that 
issue. Secondly, that people knock down their barriers to our goods and 
services. Thirdly, that we continue to grow our economy at home by 
making--by some of the reforms I've just discussed.
    But I think most people are optimistic about the economy next year. 
It's very important that we continue to put progrowth policies in place.

Iraq

    Q. Mr. President, Senator Ted Kennedy recently repeated his 
characterization of Iraq as a, quote, ``quagmire'' and has called it 
your Vietnam. And the questioning of Alberto Gonzales and Condi Rice in 
the Senate has been largely used by Democrats to criticize your entire 
Iraq program, especially what you're trying to do postwar. I wonder if 
you have any response to those criticisms? And what kind of an effect do 
you think these statements have on the morale of our troops and on the 
confidence of the Iraqi people that what you're trying to do over there 
is going to succeed?
    The President. I think the Iraqi people are wondering whether or not 
this Nation has the will necessary to stand with them as a democracy 
evolves. The enemy would like nothing more than the United States to 
precipitously pull out and withdraw before the Iraqis are prepared to 
defend themselves. Their objective is to stop the advance of democracy. 
Freedom scares them. Zarqawi said something interesting the other day, 
that--he was talking about democracy and how terrible democracy is. We 
believe that people ought to be allowed to express themselves, and we 
believe that people ought to decide the fates of their governments.
    And so I--the notion that somehow we're not making progress, I just 
don't subscribe to. I mean, we're having elections. And I think people 
need to put this moment in history in proper context. That context, of 
course, starts with whether or not the world would be better off with 
Saddam Hussein in power and whether or not America would be more secure. 
After all, I've always felt the Iraqi theater is a part of the war on 
terror.
    And I am encouraged and I am heartened by the fact the Iraqi 
citizens are showing incredible bravery. They're losing a lot of people. 
Obviously, these targeted assassinations of innocent civilians is having 
an effect on Iraqi families. But they want to vote. They want to 
participate in democracy. They want to be able to express themselves. 
And to me, that is encouraging. There is a notion in some parts of the 
world that certain people can't

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self-govern, certain religions don't have the capacity of self-
government. And that condemns people to tyranny, and I refuse to accept 
that point of view.
    I am optimistic about the advance of freedom, and so should the 
American people. After all, look what's happened in a brief period of 
time: Afghanistan; the Palestinian elections, which I think are 
incredibly hopeful elections; as well as the Ukraine; and now Iraq. It 
is--we're witnessing amazing history. And the fundamental question is, 
can we advance that history? And that's what my Inauguration speech 
said. It said, ``Yes, we can.'' I've firmly planted the flag of liberty, 
for all to see that the United States of America hears their concerns 
and believes in their aspirations. And I am excited by the challenge and 
am honored to be able to lead our Nation in the quest of this noble 
goal, which is freeing people in the name of peace.
    Bennett [Bennett Roth, Houston Chronicle].

Immigration Reform

    Q. Mr. President, the Senate Republicans recently listed their 
priorities, and immigration reform wasn't on it. Do you think this means 
it's dead for this year? And why are you having so much trouble with 
your own party on that?
    The President. No, I appreciate that question. It will be one of my 
priorities. I believe it's necessary to reform the immigration system. 
I'm against amnesty. I've made that very clear. On the other hand, I do 
want to recognize a system where a willing worker and a willing employer 
are able to come together in a way that enables people to find work 
without jeopardizing a job that an American would otherwise want to do.
    I also happen to believe immigration reform is necessary to help 
make it easier to protect our borders. The system right now spawns 
``coyotes'' and smugglers and people willing to break the law to get 
people in our country. There is a vast network of kind of shadowy 
traffickers. And I believe by making a--by advancing a program that 
enables people to come into our country in a legal way to work for a 
period of time, for jobs that Americans won't do, will help make it 
easier for us to secure our borders. And so----
    Q. Why the resistance in your party so much?
    The President. Well, I think--I'm looking forward to discussing it 
with members of both parties. I believe it's a very important issue that 
we need to address. I've had a lot of experience with dealing with 
borders, as the Governor of Texas. I know there's a compassionate, 
humane way to deal with this issue. I want to remind people that family 
values do not stop at the Rio Grande River. People are coming to our 
country to do jobs that Americans won't do, to be able to feed their 
families. And I think there's a humane way to recognize that, at the 
same time protect our borders, and at the same way to make sure that we 
don't disadvantage those who have stood in line for years to become a 
legal citizen. And I'm looking forward to working with people of both 
parties on the issue.
    David [David Jackson, Dallas Morning News].

Political Climate/Legislative Agenda

    Q. Mr. President, we saw the Democrats yesterday devote 9 hours to 
Ms. Rice. We may see something similar with regard to Judge Gonzales. 
There's just simply a lot of anger on the Hill by Democrats at you, 
personally, and at your administration. And isn't this going to dog your 
efforts at whatever you do down the line, from the Supreme Court to 
immigration to whatever?
    The President. You know, we're all here to serve the people. And as 
I say, I'm going to go out and explain why I think it's important for us 
to address big issues like Social Security reform and take my case to 
the people and let them hear the rationale about why even address big 
issues, much less the reason why I think, for example, in Social 
Security there is an issue. As I just laid out the math, it is clear 
that now is the time to act.
    And I don't know about hostility and all that business. That's--I 
guess that's your job to gauge that. When I've talked with people, I 
feel like people are looking forward to working with us.
    Q. Well, you had a Democratic Senator basically call your Secretary 
of State nominee a liar. That's pretty harsh language coming from----

[[Page 95]]

    The President. Well, there are 99 Senators other than that person. 
And I'm looking forward to working with as many Members as we can. Condi 
Rice is a fine, fine public servant, greatly admired here in America and 
greatly admired around the world. And she will make a great Secretary of 
State. And I'm looking forward to working with her.
    Listen, thank you all very much for your time. I appreciate this. 
And I'm looking forward to working with you all as we have a productive 
2005.
    Thank you.

Note: The President's news conference began at 10 a.m. in the James S. 
Brady Briefing Room at the White House. In his remarks, he referred to 
President Mahmoud Abbas (Abu Mazen) of the Palestinian Authority; 
President Viktor Yushchenko of Ukraine; Prime Minister Ayad Allawi of 
the Iraqi Interim Government; King Abdullah II of Jordan; former 
President Saddam Hussein of Iraq; Prime Minister Junichiro Koizumi of 
Japan; President Vladimir Putin of Russia; senior Al Qaida associate Abu 
Musab Al Zarqawi; and Armstrong Williams, television and radio show host 
and columnist. The Office of the Press Secretary also released a Spanish 
language transcript of this news conference.