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AMERICAN MORNING

Bush-European Summit; Angelina Jolie's Cause

Aired June 21, 2006 - 08:30   ET

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


JOHN ROBERTS, CNN ANCHOR: Actress Angelina Jolie made world headlines last month giving birth to a daughter in Namibia. For the past few years, she's also been making headlines for her work as an U.N. ambassador on refugees. In an exclusive interview with CNN's Anderson Cooper, Angelina Jolie talked about her dedication to the plight of refugees around the world.
(BEGIN VIDEOTAPE)

ANGELINA JOLIE, ACTRESS: In so many ways, it was -- I was so grateful to have having -- had that experience. And I knew I was changing as a person. I was learning so much about life.

And I was -- so, in some ways, it was the best moment of my life, because it...

ANDERSON COOPER, CNN ANCHOR: Right.

JOLIE: ... changed me for the better. And I was never going to be never going to be -- going to want for more in my life.

We certainly hear a lot of the negative things and -- about the U.N. You know, you hear -- you hear about the negative things that have gone on. You don't hear on a daily basis the amount of people that are kept alive or protected by the U.N.

And if that list was plastered everywhere, I think people would be in shock and have a little more respect.

And so whether you're for or against the war, you can certainly see that the amount of money being spent at war and the amount of money we are not spending in countries and dealing with situations that could end up in conflict if left unassisted, and then cause war.

So, you know -- so, our priorities are quite strange. So, we're not -- we are missing a lot of opportunities to do a lot of the good that America is used to doing, has a history of doing. And we're not able to be as generous. We're not able to be on the forefront of all of these wonderful things as much. And, so, whether or not you're for or against the war, you have to start to notice that that -- that there's something wrong with that.

It's frustrating for me now. I hear people talking about Darfur on the news now. And they're talking about, what are we going to do? And they're starting to discuss solutions. And you're starting -- the solutions that you heard field officers begging to be addressed three years ago, you know? And -- and you just, God, feel -- feel like, you know, how -- how many times are we going to let these things go on this long? Or when are we going to finally be united internationally to be able to handle these things immediately and...

(CROSSTALK)

COOPER: It's interesting, because, in Rwanda, the U.S. government never -- wouldn't call it a genocide. But -- but they have. This administration has called what's happened in Sudan a genocide. And, yet, it continues.

JOLIE: And, then, you think they were going to lead the -- the charge, kind of, and it -- but then they didn't.

And, so, it -- you know, and -- and my feelings -- people have said, why hasn't -- hasn't the U.N. called it a genocide or what -- and part of me just, at the end of the day, feels, well, I don't understand why we have to call it one thing or another. If it's a gross human rights violation, and people are dying, does -- does it have to have a name that's, you know, for us to act?

So, it shouldn't matter if this person's calling it or this person isn't. We shouldn't even be arguing about that. We all know something needs to be addressed.

COOPER: Do you know -- really, next? That will be the next? You're actually planning it?

JOLIE: Yes.

COOPER: Wow. Do you know where from?

JOLIE: No, no, we don't know which country, but we're looking at different countries. And we're just -- it's going to be the balance of what would be the best for Mad and for Z right now. If, you know, another boy, another girl, which country, which race would fit best with the kids.

When we were in Namibia, there's a local little clinic which we ended up having the baby in. What we learned and what I learned in being there is -- we did bring a doctor just in case. And he ended up working with the local people and they were great. But he went to the state hospital. And this is back to the point of what can be done and what governments can do.

We said we wanted to make a donation, could you go to the state hospital and see, as a doctor, what it is that they're missing, what it is that they're -- and he came back and said they have no ultrasound. They have no -- even the -- the things to listen to the baby's heart. There's a machine, you can listen to the baby's heart and the mom's heart at the same time. And they were just using this little piece of like, I don't know what it was, wood or something, to listen.

And you realize, my God, you know, for $100,000, maybe $150,000, you could get the equipment that could save lives immediately.

(END VIDEOTAPE)

ROBERTS: Angelina Jolie.

And tonight on "360," Anderson talks with Cher about her new mission to save the lives of U.S. troops in Iraq. Operation Helmet is what it's called. That's tonight at 10:00 Eastern right here on CNN.

(WEATHER REPORT)

ROBERTS: Things a little bit delayed in Vienna, Austria. President Bush expected to come out in the next few minutes, maybe about eight or 10 minutes now, along with Wolfgang Schussel and Jose Manuel Barroso, to give remarks at the E.U. Summit. We're following that. We'll bring it you when it happens.

AMERICAN MORNING will continue right after this.

(COMMERCIAL BREAK)

(BUSINESS HEADLINES)

ROBERTS: We're still waiting for that press conference with opening remarks from President Bush in Vienna, Austria, as he gets together with Austrian Chancellor Wolfgang Schussel and the E.U. Commission president Jose Manuel Barroso. It was supposed to start, oh, about 12 minutes ago. It should start now within about five minutes. We'll keep on watching it. We'll have it for you as soon as it happens, here on AMERICAN MORNING. Stay with us.

(COMMERCIAL BREAK)

SOLEDAD O'BRIEN, CNN ANCHOR: Michelle Wetzell once told her co- workers that she had a fantasy about meeting her biological mother. Little did she know that her biological mother once was one of her co- workers. Cathy Henzen gave up Michelle for adoption when she was just four days old. Thirty years later, Michelle found Cathy and now they're telling the incredible story.

Nice to see you both. And it is an incredible story, wow.

Michelle, why don't you start for me? When did you start searching for your birth mother?

MICHELLE WETZELL, BIRTH MOM WAS CO-WORKER: It was about a year ago. I had had a blood test for a life insurance policy. And it showed that I had extremely high cholesterol. So, my doctor advised me to try to get my hands on some medical information. So that's when I called Bethany Home.

S. O'BRIEN: Medical information of your parents.

WETZELL: Yes. Biological parents.

S. O'BRIEN: And because you were adopted, you realized you'd kind of hit a wall.

WETZELL: Yes, yes.

S. O'BRIEN: You went back to the adoption agency. And what did they say?

WETZELL: I worked with a later named Kim Alread (ph) and she was very helpful. It was about a year ago that we had started this. In December -- it wasn't until December that she got in contact with the biological father. She just didn't know how much she could do for me. But she would do what she could.

S. O'BRIEN: And she did a lot at the end of the day.

WETZELL: She did.

S. O'BRIEN: And, in fact, Cathy, you got -- you got the call from adoption agency.

CATHY HENZEN, BIRTH DAUGHTER WAS CO-WORKER: I did.

S. O'BRIEN: They said there's this connection there.

HENZEN: Yes.

S. O'BRIEN: What was it like to actually get the call from Michelle? to say, hi, mom?

HENZEN: Well, one thing led to another, and she wrote me a letter. And in it, she said she had gone to Capri. which is cosmetology school. And I had worked at Hair by Stewart (ph). So I was like, wow, you know, we used to recruit from Capri. So, I called Kim, the caseworker and said I got Michelle's letter. How ironic. I used to work at Hair by Stewart's. She did nails. She turned around and called Michelle and that's when it all started. Michelle knew. Because...

S. O'BRIEN: What was it like to discover that somebody that you'd sitting with in a salon was actually your birth mother?

WETZELL: Right, right. It was kind of like a weight was lifted off of your shoulders. Because it was like, oh, I know this lady. It's not going to be....

HENZEN: Right.

WETZELL: Oh, you know, like, you know, who is she or what is she like?

HENZEN: Right. You already knew.

WETZELL: Yes, yes.

HENZEN: In that, so.

S. O'BRIEN: Cathy had two daughters. WETZELL: Uh-huh.

S. O'BRIEN: And you knew these girls because she talked a lot about them and they came into the salon a lot.

WETZELL: Right, right.

S. O'BRIEN: Those are now your biological sisters.

WETZELL: Right. .

S. O'BRIEN: What does it feel like to sort of have your family right in front of you all that time?

WETZELL: Yes.

S. O'BRIEN: You didn't know it.

HENZEN: Overwhelming?

WETZELL: Yes, yes, it is. It's overwhelming.

S. O'BRIEN: This is a story with fate written all over it.

HENZEN: True, true.

S. O'BRIEN: And I'm wondering, do you think it was sort of -- you were together but not meant to know yet?

HENZEN: Maybe not.

WETZELL: And I was 20 and I just...

HENZEN: We were at different times in our life.

WETZELL: It just wasn't -- it wasn't time.

HENZEN: No.

WETZELL: So...

S. O'BRIEN: You gave up Cathy, as you mentioned, when she was four days old. She was your third daughter and you couldn't take care of her. Going through a divorce, financially would have been impossible.

HENZEN: Right, right.

S. O'BRIEN: How do you think the job other mom did raising your daughter?

HENZEN: Unreal.

WETZELL: Great job.

S. O'BRIEN: Well, congratulations. HENZEN: Absolutely.

S. O'BRIEN: It's so nice to have a happy ending to this story. We're so glad to hear it.

HENZEN: It is.

S. O'BRIEN: Congratulations both of you.

WETZELL: Thank you.

HENZEN: Thank you, Soledad.

S. O'BRIEN: Michelle Wetzell and Cathy Henzen, nice to see you.

ROBERTS: And at 49 minutes after the hour, we want to take you live to Austria, Vienna, the ornamental Hofburg Palace, where President Bush is coming out with Austrian chancellor Wolfgang Schussel and European Union -- or European Commission President Jose Manuel Barroso. He's gotten through the meetings and they're having a press availability. So let's go there. President Bush will be making some opening remarks and the three of them will be taking questions.

WOLFGANG SCHUSSEL, CHANCELLOR OF AUSTRIA: So, ladies and gentlemen, let me first start by saying that this was -- is the 15th journey of President of the United States George Bush to Europe. And I'm really happy that this journey leads -- is a kind of an Austro- Hungarian journey; leads George Bush and his team to Vienna.

We had a summit -- a very fruitful and a positive summit, touching a broad range of subjects from economy -- quite obvious. America and Europe, we are the E-2, the economic big two powers of the world. And we spoke about common trade for investment in both directions.

Of course, we touched some problems, but don't forget that 99 percent of our trade volume is done without any problems. It's per day a sum around $2 billion traded above the Atlantic Ocean.

And we touched foreign policy issues. We touched Iran. We touched Iraq, Balkan issues, global issues like global warming, climate change, et cetera.

Although we might have different approaches in some aspects, this should never overshadow and depth and quality of our cooperation.

We covered, as I said it, a wide range of issues during our talks, from foreign policy and economic cooperation. The energy security was high on our agenda; the protection of intellectual property rights, the cooperation to fight against terror and the protection of human rights around the world.

In our common responsibility to promote stability and security for our citizens and the world, the European Union and the United States successfully work together. There are recent examples for our good cooperation: let me mention just Iran, Middle East and Iraq. And one of the topics we intensively discussed today: our efforts to keep Iran from producing nuclear weapons. We have come to a crossroads on the Iranian nuclear issue. Iran has to make the right choice. And we welcome U.S. involvement. A particularly recent historic sign, signal that U.S. is ready to join negotiations, talks if conditions for resuming negotiations are met.

And this signal greatly contributed to the credibility of a united position between the key players.

And I told President George Bush how much we appreciate his constructive role in this particularly sensitive situation.

The situation in Middle East is still complex. There's no doubt that the Palestinian government has to accept the basic principles of the peace process: nonviolence, recognition of Israel, acceptance of existing agreements -- the so-called road map.

On the other hand, both American and Europe consequently argue against any unilateral steps by Israel. The escalation of armed confrontation during the recent days and weeks show the lack of a political perspective. The solution to this conflict can only be a political one based on negotiations and the principles of the road map.

In Iraq, we welcome the formation of the new Iraqi national unity government on the 20th of May. We strongly condemn terrorist acts, the continuing campaign of violence against the Iraqi people and their constitutionally elected government.

The European Council last week, we stressed our encouragement for enhanced institutional and international engagement, and underlined our willingness for continue supporting U.N. role in Iraq.

On Balkans, we informed President Bush on the European strategy. We have opened negotiations last week with Croatia. Macedonia is a candidate. We signed an agreement for stabilization association with Albania. We have now Montenegro independent. Bosnia is integrated. And we are all the time involved in positive talks with Serbia.

Of course, there are open questions, and we discussed them in detail, in Kosovo. Negotiations under the chairmanship of Martti Ahtisaari and Ardet Waha (ph) are taking place here in Vienna. The office of Ahtisaari is here and we do our utmost to help and to ease.

Strong bilateral ties between Europe and USA absolutely important.

We are the most important economic partners for each other.

And this summit highlights only some topics; progress made in many other areas should not be overlooked.

Today, we signed an agreement on higher education and vocational training that will last for a longer period of time than the previous on, engage us in a larger quantity of programs and funds, and will reach more students and teachers -- three times more students than before.

Given the worldwide increase in energy demand and at the same time limited resources, security of supply is of strategic importance. And, therefore, we welcome the establishment of a strategic cooperation between America and Europe. And we are committed to develop a coherent energy strategy that not only emphasizes security of supply but also efficiencies, sustainability and climate protection.

This is my first statement, and I'll invite the president of the United States, George Bush, to take the floor, and then the president of the commission.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Mr. Chancellor -- I call him Wolfgang. He calls me George W.

(LAUGHTER)

Jose, it's good to see you. Thank you very much for your hospitality.

I also want to thank President Fischer for his hospitality, as well.

I've really been looking forward to this trip. I've never been to your beautiful country. I need to come back. It is -- and your hospitality's been grand. I really appreciate it a lot.

We did have a very engaged and fruitful conversation. As we should. We're close partners in peace and prosperity.

I've always believed that when America and the E.U. work together we can accomplish big deeds. And this world needs us to work together because there's a lot of challenges.

We talked about democracy and new democracies. And I want to thank the European Union for its strong support of Afghanistan and Iraq.

Look, I fully understand we've had our differences on Iraq. And I can understand the differences. People have strong opinions on the subject.

But what's past is past, and what's ahead is a hopeful democracy in the Middle East.

And I want to thank your leadership -- both of your leaderships on this important issue.

I believe the Maliki government's going to succeed. I know the government needs our help.

And the European Union has stood up to help. And I can't thank you enough for that.

We with talked about Lebanon and the need for Lebanon to be free from Syrian influence. We worked very closely together at the United Nations to send that clear message to the Syrians: "Leave Lebanon alone. Let them be. Let them be a free democracy, which is a necessary part of laying the foundation for peace in the Middle East."

We talked about Israel and Palestine. I assured the leaders here that my position is firm, and that is I envision two states living side by side in peace.

And we want to help.

On the other hand, we're not going to deal with a government that has made the destruction of Israel one of its key policy platforms. How can you be side by side in peace if part of your platform is the destruction of one of the countries you're supposed to be at peace with?

And I appreciate Europe being strong on that issue, as well.

We talked about the Balkans. And I assured the chancellor that Austria's role in the Balkans and European Union's role is essential.

And we look forward to supporting your role.

In essence, the E.U., particularly under the chancellor's guidance, is in the lead on the Balkans. And we want to help. We want to be a participant in helping bring peace to that region.

I think that European Union is a vital part of helping solve the issue of the Balkans. After all, aspirations to the E.U. causes people to adopt the habits necessary for there to be a democracy in peace.

And so we're very strongly supportive of the E.U.'s role in the Balkans.

And applaud your strong role, as well, Mr. Chancellor.

We talked about development and prosperity. Listen, we're trading partners. And we got to make sure that commerce and trade and capital continues to flow freely between the E.U. and America. And we talked about some of the impediments to capital flows. And we discussed our desire to make sure that we continue to trade as freely as possible.

Obviously, the Doha round of the WTO was a big subject. And it's a tough subject because we're trying to make difficult adjustments to our own internal policy in order to satisfy a -- in order to -- in order to reach an agreement that's fair for all of us.

But the good news is is that we were very frank in our discussions. I mean, the Europeans have problems with the U.S. position. We have problems with the European position. We both have problems with the G-20 position.

But the point is we're committed to a successful round. And it's going to take hard work. There's a ministers meeting here at the end of this month, and my pledge to our European counterparts is we'll do the very best we can to reach an agreement that is -- that satisfies all parties' desires.

But make no mistake about it: It's hard work.

My view is is that we can't let this round fail. A failed WTO round would be missed opportunity, particularly to help people in an impoverished -- who are impoverished.

The best way to help lift people out of poverty is trade. And we can give all the money you want -- and my government has been very generous on account of Africa. We're joining with the Europeans to fight HIV/AIDS and to deal with hunger.

But if you're really interested in development, the best way to do it is to have a successful round at the WTO. And I understand that, and we're committed to working for success in that round.

We talked about energy. I, kind of, startled my country when, at my State of the Union, I said, "We're hooked on oil and we need to get off oil." That seemed counterintuitive for some people to hear a Texan say.

But the truth of the matter is we got to diversify away from oil. And the best way to do it is through new technologies. And we agreed we would share technologies between our nations and between the E.U. and the United States.

The E.U. needs to get diversified, as well.

And so this is going to be a very interesting period for us as new technologies develop. And we're willing to share those technologies.

And we talked about our efforts to continue to defeat the terrorists. I reminded my fellow leaders here that the terrorists still want to strike. And they do want to do harm. And we have an obligation to work very closely together.

And, obviously, they brought up the concern about Guantanamo. And I understand their concerns. But let me explain my position.

First I'd like to end Guantanamo. I'd like it to be over with.

One of the things we will do is we will send people back to their home countries. We've got about 400 people there left: 200 have been sent back; 400 are there, mainly from Saudi Arabia, Afghanistan and Yemen.

And I explained to the two leaders here our desire is to send them back. Of course, there's international pressure not to send them back. But hopefully we'll be able to resolve that when they go back to their own country.

There are some who need to be tried in U.S. courts. They're cold- blooded killers. They will murder somebody if they're let out on the street.

And yet we believe there ought to be a way forward in the court of law. And I'm waiting for the Supreme Court of the United States to determine the proper venue in which these people can be tried.

So I understand the concerns of the leaders. They expressed the concerns of the European leaders and the European people about what Guantanamo says.

I also shared with them my deep desire to end this program. But also, I assured them that we will -- not going to let people out on the street that will do you harm.

And so we're working through the issue. And I appreciate your interest and appreciate your questions.

Finally, we talked about Iran. It's very important for the leadership in Iran to look at the world and say, "Europe and the United States and Russia and China are united in our common desire to make sure that Iranians do not develop a nuclear weapon."

And step one of achieving a diplomatic success is to share a goal. And there's no question we share the goal of Iran not having the capacity and/or a nuclear weapon. It would be -- it would be a terrible situation if they developed a weapon.

And so the second phase of a diplomatic strategy is to have a common front -- a common diplomatic front that says clearly to the Iranians, "Here's the way forward for it, but you get to choose."

And so I said to my counterparts here that, "We'll come to the table to negotiate, so long as Iranians verifiably end any enrichment activities."

The Iranians have said that they will end uranium-enrichment activities before. That's what they told E.U.-3. We're just asking them to do what they already said they would do.

But it's their choice to make. And I'm convinced that when they look and see that we're working very closely together, that they will see the seriousness of our intent to resolve this in a diplomatic and peaceful way.

And so the discussions were, you know, wide-ranging, which is a positive sign of a healthy relationship. We shared tactics and strategies, which is a sign of a healthy relationship. We disagreed in an agreeable way on certain issues. But we're bound to work together for the good of our respective peoples.

And this meeting has been a great success, Mr. Chancellor. And I appreciate you running it. And, again, I want to thank you for your hospitality.

JOSE MANUEL BARROSO, PRESIDENT, EUROPEAN COMMISSION: Thank you, thank you very much.

I think there is a very good spirit in the European Union and the United States relations, and we're building on that today.

And as President Bush just said, it was not just a working meeting for very concrete results, but also we were thinking aloud. We are discussing together some possible strategies for the future.

And it is precisely in that spirit that relations between partners like the United States and the European Union should be established.

But let me just concentrate on concrete results of this summit that were already presented by Chancellor Schussel, but I want to highlight some of them.

First, we are entering into strategic cooperation on energy to promote energy security for producers, consumers and transit countries alike. I think this is important, strategic cooperation on energy between the United States and Europe.

Second, we have agreed to establish a European Union-United States high-level dialogue on climate change, clean energy, sustainable development.

This will address ways to deliver cost-effective emission cuts, development and employment of new technologies, efficiency and conservation, renewable fuels, and other environmental issues such as biodiversity.

We have also discussed how to deliver an ambitious and balanced conclusion to the Doha development agenda. These negotiations are at a crucial phase. European Union and the United States have a joint responsibility to help deliver an agreement which promotes growth and opportunity, especially for the poorest. We look for a similar determination from other WTO members.

And after the good exchange of views we had today during this summit, I'm convinced -- I'm really convinced that it's possible to have a successful outcome of the Doha talks. And it's crucially important from a trade point of view, from a global economic point of view, but also from a development point of view.

Third, we have endorsed today a strategy for the enforcement of intellectual property rights in third countries. For the first time, we have named the countries and regions which cause most concern. They will be the focus of concrete joint actions to reduce global piracy and counterfeiting.

Proper protection of intellectual property is vital for our industry and for our consumers.

Fourth, we also agreed on the need for open investment regimes, fighting all protectionist tendencies that can happen in some of our circles.

We need to boost growth, jobs, and get best control of our very dynamic trans-Atlantic economy. Two-way investment benefits our economies. In this context, I hope we will see the finalization of the European Union-United States air transport agreement, if possible by the end of the year.

We also addressed the issue that it is very important in the European Union of the -- for the establishment of reciprocal visa-free travel for all European Union citizens to the United States. I also believe this is good for our citizens, this is good for our economies.

Finally, the points I want to highlight.

I want to emphasize our shared commitment to promoting democracy, freedom all over the world.

The very enlargement of the European Union has been one of the greatest achievements in terms of promotion of democracy, from Southern Europe, West Europe, to Eastern Europe, North Europe from the Iberian Peninsula in the '80s to the Baltic countries now most recently. The European Union is a great success story in terms of promoting democracy. And we all want to do it also globally, and we are doing it globally.

And that's one of the fields where I see that the United States and European Union can do and should do even more together.

One thing is sure: The world now is very complex. Even together, we are not sure that we will solve all issues. But if we don't are (sic) working together, it will be much more difficult to face global challenges.

I believe this summit was very helpful for having this closer relationship between the United States and Europe so that together we can do our best to make the world a better place.

Thank you.

QUESTION: Can you explain why the world should be (OFF-MIKE) long-range missile? And what sort of penalties would you think are in order if they do so?

And to the chancellor, if I might, where does the E.U. stand on possible penalties for such a test?

BUSH: The North Koreans have made agreements with us in the past, and we expect them to keep their agreements.

For example, agreements on test launches: We think it'd be in the world's interest to know what they're testing, what they intend to do on their test. It should make people nervous when non- transparent regimes that have announced that they've got nuclear warheads fire missiles.

And so we've been working with our partners, particularly in that part of the world, to say to the North Koreans that, "This is not the way you conduct business in the world. This is not the way that peaceful nations conduct their affairs." I was pleased to see that the Chinese spoke out to the North Korean government and suggested they not fire whatever it is on their missile. And we'll see whether or not the North Koreans listen.

One of our strategies in North Korea is to make sure we include other countries as a part of our consortium to deal with this nontransparent regime.

And China is an integral part of what we've called the six-party talks. And I am pleased that they're taking responsibility in dealing with the leader of North Korea. I think it's a very positive sign.

I've talked to President Putin about this subject,I know that we've been reaching out to the Japanese, all aimed at saying to the North Koreans, you know, "This is not a -- you know, in order to be an accepted nation, a non-isolated nation, there are certain international norms that you must live by." And we expect them to live by those norms.

SCHUSSEL: I couldn't agree more. The (inaudible) of North Korea and their compliance (ph) with the international rules and the international standards are always a matter of great concern, always high on the priority list of foreign policy matters within the European Union.

And if this happens, there will be a strong statement and a strong answer from the international community. And Europe will be part of it; there's no doubt.

We discussed it, by the way, in our debate, what to do when and if. And there will be a strong response on that.

QUESTION: Question to President Barroso and President Bush.

Do you actually share the view that Russia is using its energy resources to oppress other countries? And in what respect does your cooperation help you now to position yourselves against that?

And if I may to President Bush, you've got Iran's nuclear program, you've got North Korea, yet most Europeans consider the United States the biggest threat to global stability. Do you have any regrets about that?

BUSH: That's absurd.

(AUDIO GAP)

BUSH: ... my statement. That is the United States is -- we'll defend ourselves, but at the same times we're actively working with our partners to spread peace and democracy.

So whoever says that is -- it's just -- that's an absurd statement.

BARROSO: Yes, on energy (inaudible) that energy is a geo- strategic question. That's why in January, President Bush called for an end to American oil addiction. That's why in February, in Washington, I asked for partnership between the United States and the European Union in matters of energy. That's why today, we are agreeing on key principles to guarantee energy security.

And I also welcomed the high-level -- the agreement on a high- level dialogue between European Union and the United States on climate change, sustainable development.

These are central challenges to all of us globally.

BARROSO: So our agreement is not against anyone.

By the way, we expect the G-8 summit to be a very important point and to be a success. And we wish President Putin a success in that G- 8 summit. We believe it should be an occasion to reinforce our message for an open, stable, non-discriminatory, transparent market on energy.

So energy is a global issue and it should be tackled globally.

QUESTION: Iran says it will respond to the offer in late August. Is that a suitable time frame?

And I would ask all of you, Iran's foreign minister says some kind of negotiations can start before a final answer is given. Are you willing to do that?

BUSH: Well, our position, is that we'll come to the table when they verifiably suspend -- period. And we expect them to verifiably suspend. This is what they said they would do to the E.U.-3.

Secondly, the August 22nd date -- is that part of your question? Yes. It seems like an awful long time for a reasonable answer -- for a reasonable proposal; a long time for an answer.

And we look forward to working with our partners.

And we just got word of this statement as we walked in here. But it shouldn't take the Iranians that long to analyze what is a reasonable deal.

QUESTION: (OFF-MIKE)

BUSH: Well, I said weeks, not months. And I believe that's the view of our partners: weeks, not months.

SCHUSSEL: We agree.

We spoke about Iran in length. And it is really one of the fruits of a well-balanced partnership and cooperation that we were able to offer a bold package of incentives to Iran, to the Iranian government and to the Iranian people.

And as President Bush said it, it's better to agree as soon as possible. The time is limited. And I think we should not play with time. This is -- we discussed it for months and months. And I think time -- there is -- in Greek language there is -- and I learned ancient Greek -- there's a fantastic work, chiros (ph). Chiros (ph) means "the right moment." The right moment -- it's not only time, it's the right moment.

And I think now is the right moment for Iran to take this offer, to grab it and to negotiate.

This is well-balanced. We got advice from everybody from the international scene: United Nations, ElBaradei here, the International Atomic Energy organization, a lot of experts of scientists that convinced us. Of course, the E.U.-3 and America, Russia and China are on-board.

So this is that chiros (ph). Take it. This is my advice.

QUESTION: Chancellor Schussel, the European public is deeply worried by these secret prisoners that the CIA has been transporting -- or is transporting -- through Europe. Did you get the assurance today from the president that this is not going to happen anymore, that there won't be anymore kidnapping of terror suspects in Europe, that this is a thing of a past?

And to the president, Mr. President, you said this is absurd. But you might be aware that in Europe, the image of America is still falling and dramatically in some areas.

Let me give you some numbers. In Austria, in this country, only 14 percent of the people believe that the United States -- what they are doing is good for peace; 64 percent think that it is bad.

In the United kingdom, your ally, there are more citizens who believe that the United States policy under your leadership is helping to destabilize the world than Iran.

QUESTION: So my question to you is why do you think that you've failed so badly to convince Europeans, to win their heads and hearts and minds?

BUSH: Well, yeah, I thought it was absurd for people to think that we're more dangerous than Iran.

(LAUGHTER)

I -- you know, it's -- we're a transparent democracy. People know exactly what's on our mind. We debate things in the open. We've got a legislative process that's active.

Look, people didn't agree with my decision on Iraq. And I understand that. For Europe, September the 11th was a moment; for us it was a change of thinking.

I vowed to the American people I would do everything I could to defend our people, and will. I fully understood that the longer we got away from September the 11th, more people would forget the lessons of September the 11th. But I'm not going to forget them.

And therefore, I will be steadfast and diligent and strong in defending our country.

I don't govern by polls, you know. I just do what I think is right.

And I understand some of the decisions I've made are controversial. But I made them in the best interest of our country and, I think, in the best interests of the world.

I believe when you look back at this moment, people will say, "It was right to encourage democracy in the Middle East."

I understand some people think that can't work. I believe in the universality of freedom. Some don't. I'm going to act on my beliefs so long as I'm the president of the United States.

Some people say, "It's OK to condemn people to tyranny." I don't believe it's OK to condemn people to tyranny, particularly those of us who live in the free societies.

And so I understand. And I'll try to do my best to explain to the Europeans that, on the one hand, we're tough when it comes to the terror. On the other hand, we're providing more money than ever before in the world's history for HIV/AIDS on the continent of Africa.

I'll say, on the one hand, we're going to be tough when it comes to terrorist regimes who harbor weapons.

On the other hand, we'll help feed the hungry.

I declared Darfur to be a genocide because I care deeply about those who have been afflicted by these renegade bands of people who are raping and murdering.

And so I will do my best to explain our foreign policy. On the one hand, it's tough when it needs to be. On the other hand, it's compassionate.

And we'll let the polls figure out -- you know, people say what they want to say. But leadership requires making hard choices based upon principle and standing by the decisions you make. And that's how I'm going to continue to lead my country.

Thank you for your question.

SCHUSSEL: Let me add something.

I think Austria is a really good example to show that America has something to do with freedom, democracy, prosperity, development. Don't forget, I was born in '45. At that time, Vienna and half of Austria laid in ruins. It meant, without the participation of America, what fate would have Europe?

Where would be Europe today? Not the peaceful, prosperous Europe like we love it and where we live.

And I think I will never forget that America fed us with food, with economic support. The Marshall Plan was an immense help and incentive to develop industry, agriculture, tourism.

And by the way -- I said it to the president -- the Marshall fund is still working in Austria. It's now transformed into a kind -- in a fund for research and development. It's still working.

But the American people -- at that time, the American government invested billions of dollars in Europe to develop the former enemy.

And now we are a partner.

So I think it's grotesque to say that America is a threat to the peace in the world compared with North Korea, Iran, a lot of countries.

Of course, we -- and I thank you very much for the question on human rights and the overflights and the secret prisons and Guantanamo. And it was quite interesting to see how the debate was going on in the -- this morning.

The president started, himself. He didn't wait, did we raise the question. He came up, and he said, "Look, this is my problem. This is where we are."

And I think we should be fair from the other side of the Atlantic. We should understand what September 11th meant to the American people.

It was a shock. For the first time -- a real shock. The society, values were attacked. American values, international values, European values were attacked in the home country for the president and all Americans.

And we should not be naive. We Europeans are also attacked. We had bomb attacks in Madrid; hundreds of people were killed. We had bomb attacks in London subway. Buses were blown up. We had detected some terrorists who tried to shoot down an Israeli airplane. We should not be naive.

And since September 11th -- and I think this is important to underline that -- since September 11th, we are now able to define our targets, to fight against terror and terrorists, to cut off their financial supplies, to share information, to secure our citizens, our people.

This is the ultimate goal; not creating enemies -- virtual enemies, but to secure our people and to secure peace in the world and to stabilize our societies.

The problem is -- and I will be very frank on that, and I said it the same way like we did it here, and we say it now -- we are only -- we can only have a victory in the fight against terror if we don't undermine our common values. It can never be a victory -- a credible victory over terrorists if we give up our values: democracy, rule of law, individual rights.

This is important to know. And our discussion with all the European parliaments, the European governments, I personally, we are calling for the closure of Guantanamo.

But our discussion today went far beyond closing Guantanamo, because we have a legal problem, we have gray areas. And there should be no legal void, not in the fight against terrorists but also not for individuals, to be guaranteed in their individual rights and their freedom.

And it's quite interesting to see how the president reacted.

I welcome, of course, your statement saying that you are looking forward to close Guantanamo and it depends on the Supreme Court's decision.

And we got clear, clear signals and clear commitments from the American side: no torture, no extraordinary or extra-territorial positions to deal with terrorists. All -- McCain amendment, for instance -- all the legal rights must be preserved.

But we have to help to find the way-out strategy, to help countries to take back the prisoners, either to charge them or to release them. And there are international organizations which could help and could assist.

And we discussed this in detail. And I think it's important to know that, although there are differences in the legal perception, it was possible to have such a statement.

And I really want to add, after my visit to you in December '05 -- last December -- we established a very good cooperation between John Bellinger, the legal adviser of the State Department, and the Austrian Felkerischt Bureau (ph), the Department for International Law, and this is working. We are really working in a precise, professional way on that.

So thank you very much.

Let me say, Mr. President, I'm really happy that you are here, that you were here in Vienna. Come back if possible. You will find a little bit more from our town and from the possibilities of our city. And don't let us wait for another nearly 30 years for the next visit.

All the best. Thank you.

BUSH: Good job. Thank you.

Thank you, sir.

SCHUSSEL: Thank you.

O'BRIEN: Three-way handshake is what you are looking at right there. President Bush and the Austrian Chancellor Wolfgang Schussel and the European Commissioner President Jose Manuel Barroso. We just heard all three of them, not only making opening statements, but also taking some questions from some of the media and press that's assembled there.

One of the top topics of course, Iran and nukes. Also, President Bush spoke about North Korea's missile tests. We've been talking about that over the last couple of days, and strategies to deal with both of those potential threats. We want to get to CNN European political editor Robin Oakley. He is live in Vienna. We are going to check in with him in just a few moments.

There was a direct question from a reporter to the president, President Bush, about penalties if indeed for both North Korea and Iran as well, what the president tackled, penalties are for both of these nations if they go ahead with their plans, in Iran's case, to pursue nuclear weapons, in North Korea's case, to go ahead with a missile test. And the president while answering that had no real direct answer about some specific penalties.

Also a question, or really a statement, by one foreign journalist who said that, wasn't it true that the U.S. is perceived in Europe to be a greater threat to instability in the world, a greater threat to global instability than Iran might be. And the president said, well, that is an absurd statement.

We're going to check in with Robin Oakley in just a few minutes, as soon as we can get his signal out from there.

Let's move on now. Some word just in to CNN. Three people have been shot at a federal prison. It happened in Tallahassee, Florida. The shooter was captured. All three victims have been taken to the hospital. The FBI is going to have more information. They're holding a news conference at 10:00 a.m., and we'll update you on what exactly has happened there.

A short break coming up. We're back in just a moment. Stay with us.

(COMMERCIAL BREAK)

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