Saturday Morning News

Bush, Blair Finishing Promising First Meeting

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

KYRA PHILLIPS, CNN ANCHOR: We begin this hour with old allies and new friendships. President Bush and British Prime Minister Tony Blair winding up their first meeting at Camp David. They established a good rapport and some common international goals.

CNN's Kelly Wallace joins us from the White House with more on the Camp David meeting and the president's new domestic focus.

Hi, Kelly.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Hi, Kyra.

Well, the British prime minister and his wife, Cherie, are expected to depart Washington headed for London just about a half hour from now. This meeting between the president and the British prime minister part get-acquainted session, part a chance to display their unity on some key issues.

Now, yesterday at the presidential retreat at Camp David, the two men took a walk in the woods. They also talked policy, and on Iraq, the two leaders said now is not the time to lessen the pressure on Iraqi leader Saddam Hussein, but at the same time, they did agree that changes must be made to strengthen the United Nations sanctions against Iraq.

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GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I made the famous statement that our sanctions are like Swiss cheese. That means they're not very effective. And we're going to work together to figure out a way to make them more effective. But I think the prime minister and I both recognize that it is going to be important for us to build a consensus in the region to make the sanctions more effective.

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WALLACE: And on two other controversial proposals, both men seemed to give the other a bit of a boost. Mr. Bush said he could support Europe's plans to create its own defense force, saying the prime minister told him such a force would not undermine NATO.

And as for President Bush's plans to go forward with a controversial national missile defense system, Mr. Blair, while he did not come out and endorse such an idea, he did say that there are new threats out there, and that the allies must to everything and discuss every possible way to deal with those threats.

Now, perhaps in one of the lightest moments of yesterday's news conference, the two leaders were asked what they have in common. After all, much has been made of all that the prime minister and former president Bill Clinton had in common. Mr. Bush quickly responded, saying that both leaders use Colgate toothpaste. While reporters cracked up at that one, even the prime minister smiled, Kyra. This president showing his delight in cracking jokes at every opportunity -- Kyra.

PHILLIPS: All right, Kelly, we better switch over.

Another question for you, agenda item, the budget. Is Bush getting ready to outline that for Congress?

WALLACE: Absolutely. He will actually formally send Congress his budget on Wednesday, and he will give a big speech to a joint session of Congress Tuesday night in which he will outline his budget priorities. He will make the case that his budget will do three things, that it will pay down the national debt, that it will cut taxes, and that it will also increase spending on his priorities, such as education, scientific research, defense, and Medicare.

But Kyra, he will also make the case that wasteful spending under his watch must and will come to an end. He will say that government spending has been increasing on some discretionary programs by 8 percent a year over the past three years, and he says that it won't increase that much under his presidency -- Kyra.

PHILLIPS: All right, Kelly Wallace, live at the White House, thanks so much.

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