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CNN Live Event/Special

President Bush Reassures American Public U.S. Economy Is Strong

Aired September 22, 2001 - 10:00   ET

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

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: The fog has moved in. It is lifting slowly but again, Saturday, September 22, our coverage continues in America's New War.

Also with us now, John King down in Washington.

John, good morning again to you.

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: And to you as well, Bill.

And as the military planning intensifies, more and more of the president's time also turning now to the slowing U.S. economy and what the federal government can do to help.

HEMMER: John, we'll be back with you momentarily.

First, though, let's check the latest developments we have on this Saturday morning.

President Bush at Camp David, Maryland, we'll hear a teleconference today with his national security team. In less than six minutes from now, we'll bring you the president's weekly radio address in its entirety. Stay tuned for that.

Also, overseas the United Arab Emirates has cut diplomatic ties with the Taliban government of Afghanistan. This in the dispute over turning over suspected terrorist Osama bin Laden. Only Pakistan and Saudi Arabia still have relations with the Taliban.

Meanwhile, the Taliban say they shot down a plane today over Afghanistan but conflicting reports now over what kind of plane it was and what nation it represented. No comment so far today from the Pentagon.

Also in the U.S., any bulls left on Wall Street have had a rough trading week, to say the least. Serious concerns about the U.S. economy as layoffs mount and the Dow Jones industrial average losing more than 1,300 points in trading Monday through Friday. That wiped out about $1.2 trillion in stock value in just one week's time. Much more on the economy a bit later this morning, but now to Washington again and John King -- John. KING: Well, as you mentioned, Bill, we're just a few moments away from the president's weekly radio address. We will bring that to you live.

In the meantime, I want to bring in for the latest on what the president is up to at Camp David our White House correspondent Kelly Wallace standing by in Hagerstown nearby.

Kelly, looking through some of the paperwork, the president yesterday signed the order releasing $5 billion -- the first $5 billion of that $40 billion in emergency spending to help with the recovery effort. There's $40 million for the Justice Department, that's for the investigation, $29 million for the Labor Department to help, among other things, dislocated workers, but tell us, if you look under the Department of State an interesting number there, is there not?

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Very, very interesting indeed, John, $25 million going to basically provide a reward for information leading to finding those responsible for last week's deadly terrorist attacks so a very interesting amount of money there. Again, to try to motivate the American people and the worldwide community to turn over information to law enforcement agencies, and then this reward, of course, to track down those responsible for those attacks, John.

KING: And later today, Kelly, we do expect the president to engage in another round of military planning?

WALLACE: Absolutely. What he'll be doing, John, is he'll be chairing a meeting with his National Security Council staff. The only people up at Camp David with him include his Chief of Staff Andrew Card, his National Security Adviser Dr. Condoleezza Rice and his Commerce Secretary Donald Evans, all other principals of the National Security Council back in Washington. The president chairing this meeting via a video conference. Again, this is sort of the ongoing planning for this campaign -- this military, diplomatic and economic campaign. Basically that planning continuing.

Also the diplomacy continuing, John. We saw the president meeting with the Foreign Minister of China on Friday, working the phones, talking with the leaders of Nigeria, Oman and Turkey. He has meetings planned this week with the leaders of Canada and Japan. As you see, this administration trying to build a very broad -- a very broad coalition reaching out to traditional U.S. allies and also reaching out to non-traditional allies. We have seen some type of contact even through third party channels with Iran, also with Syria, the Sudan and Cuba. So clearly, the administration going to allies and not typically U.S. allies to try and build a campaign against terrorist, John.

KING: All right, Kelly Wallace, standing by at Camp David, Maryland, you stay in place.

We're just moments away from the president's radio address to the nation. As Kelly Wallace noted, among his guests up at the Camp David retreat this weekend, Commerce Secretary Donald Evans. I spoke to Mr. Evans earlier in the week. He said among his jobs right now calling CEOs all across the United States asking them to hang in there, to try to keep the economy going in this time of crisis. He's also asking them what the government can do to help. We know that will be among the president's subjects today in his weekly radio address to the American people.

Mr. Bush speaking from the presidential retreat at Camp David, let's listen in.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Good morning.

The terrorists who attacked the United States on September 11 targeted our economy as well as our people. They brought down a symbol of American prosperity but they could not touch its source. Our country's wealth is not contained in glass and steel, it is found in the skill and hard work and entrepreneurship of our people and those are as strong today as they were two weeks ago.

Our economy has had a shock. Many workers lost their jobs this week, especially in the airline and hospitality industries, in restaurants and in tourism as companies struggle to remain afloat. I applaud those companies who are making extra efforts to avoid laying off workers even during difficult times.

Many Americans have also seen the value of their stocks decline, yet for all these challenges, the American economy is fundamentally strong. We have the best-educated, most productive work force in the world. Our factories produce more goods and a broader variety of goods than any country in the world. Our scientists continue to push forward the frontiers of technology and science and our entrepreneurs continue to invent new ways to bring these advances to market. This is why people from around the world invest in America.

We have taken action to address our year long economic slowdown. Tax rebate checks continue to arrive in American's mailboxes. The $40 billion in tax relief these rebates represent will nearly double next year to over $70 billion in tax relief with more in each of the next 10 years as the child credit gets bigger, tax rates come down and the marriage penalty relief kicks in.

You can look forward to an improved business climate in America in the years ahead. The Federal Reserve has done its job of keeping our financial system strong and stable, cutting interest rates in half in the last eight months. Energy prices have remained steady. In fact, they are lower now than they were in the spring.

And members of Congress are working together, regardless of party, in the best American spirit to help get our economy moving again. The administration and congressional leaders of both parties have agreed to deliver emergency aid to keep our airlines flying. This will help the airlines maintain short-term stability as they work toward long-term viability for the benefit of all the workers and companies that depend on air travel. And as well, we can assure the American traveler we are working hard to make sure that a tough new security program is implemented in our airports and our airplanes. I appreciate so very much working with Congress to assure the safety of the travelers in America.

I'm also working with Congress to strengthen our broader economy and to get Americans back to work. Both parties in both houses of Congress are united in our determination to use the fundamental strength of our economy to meet our immediate economic challenges. I'm deeply grateful to Speaker Hastert and Minority Leader Gephardt, to Majority Leader Senator Tom Daschle and Senator Trent Lott for their helpful advice and for their constant support and for their extraordinary service to our country in a difficult time.

I want to thank America for the outpouring of support. I want to thank America for their strong will, and I want to remind the people of America we're still the greatest nation on the face of the Earth and no terrorist will ever be able to decide our fate.

May God bless you all, and thank you for listening.

KING: President Bush speaking this morning from the presidential retreat at Camp David, Maryland, trying to reassure the American people that despite the serious economic impact of these twin terrorist attacks, in the president's view, the U.S. economy quite strong and he predicted it will rebound in the long term.

Still a great sense of anxiety here in Washington. The president in urgent negotiations with key members of Congress about a stimulus package likely to include more government spending as well as perhaps additional tax cuts -- a capital gains tax cut at the top of that list. And you heard the president praise the cooperation from Democrats, the House Minority Leader Richard Gephardt who will give the Democrat's radio address the weekly response. Stay tuned for that one hour from now, 11:06 Eastern.

Now back to Bill Hemmer in New York.

HEMMER: OK, John, thank you.

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