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British Prime Minister, President Obama Hold Press Conference

Aired July 20, 2010 - 14:00   ET

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


(JOINED IN PROGRESS)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: --To welcome Prime Minister Cameron on his first visit to the White House as prime minister. We have just concluded some excellent discussions, including whether the beers from our hometowns that we exchanged are best served warm or cold.

My understanding is that the prime minister enjoyed our 312 beer and we may send him some more. I thought the beer we got was excellent. But I did drink it cold.

Mr. Prime Minister, we can never say it enough. The United States and the United Kingdom enjoy a truly special relationship, celebrate a common heritage.

We cherish common values and we speak a common language most of the time. We honor the sacrifices of our brave men and women in uniform who have served together, bled together, and even lay at rest together.

Above all, our alliance thrives because it advances our common interest. Whether it's preventing the spread of nuclear weapons or securing vulnerable nuclear materials, thwarting terrorist attacks, or confronting climate change, or promoting global economic growth and development, when the United States and the United Kingdom stand together, our people and people around the world are more secure and they are more prosperous.

In short, the United States has no closer ally and no stronger partner than Great Britain. And I appreciate the opportunity to renew our relationship with my partner, Prime Minister Cameron.

In his campaign, David was known for his extensive town hall discussions with voters -- "Cameron direct." And that's the same spirit that we had here today.

I appreciate David's steady leadership and his pragmatic approach. And just as he's off to an energetic start at home, I think we've had a brilliant start as partners who see eye to eye on virtually every challenge before us. Great Britain is one of our largest trading partners, and we're committed to long-term, sustainable growth that keeps the global economy growing and puts our people to work.

I told David that my administration is working hard with the Senate to move forward as soon as possible with our defense trade treaty with the U.K., which will be good for our workers and our troops in both our countries. We reaffirmed our commitment to fiscal responsibility and reform. David's government is making some courageous decisions, and I've set a goal of cutting our deficit in half by 2013.

Tomorrow I'll sign into the law the toughest financial reforms since the aftermath of the Great Depression. And I commend David for his leadership in Europe to rebuild confidence in the financial sector. Together, we're determined to make sure the financial catastrophe that we are emerging from never happens again.

We discussed the Middle East, where both our governments are working to encourage Israelis and Palestinians to move to direct talks as soon as possible. We discussed the continuing threat posed by Iran's nuclear program. On this, we are United.

The Iranian government must fulfill its international obligations. The new sanctions imposed by the U.N. Security Council, the United States and other countries are putting unprecedented pressure on the Iranian government. And I thanked David for Great Britain's efforts to ensure strong European Union sanctions in the coming days. Along with our P5 plus 1 partners, we remain committed to a diplomatic solution, but the Iranian government must understand that the path of defiance will only bring more pressure and more isolation.

Finally, much of our discussion focused on Afghanistan. After the United States, Great Britain is the largest contributor of combat forces in Afghanistan, and British troops and civilians have served and sacrificed in some of the most dangerous parts of the country.

This is not an easy fight, but it is a necessary one. Terrorists trained in Afghanistan and the tribal regions along the Pakistani border have killed innocent civilians in both of our countries, and an even wider insurgency in Afghanistan would mean an even larger safe haven for al Qaeda and its terrorist affiliates to plan their next attack. And we are not going to let that happen.

We have the right strategy. We're going to break the Taliban's momentum. We're going to build Afghan capacity so Afghans can take responsibility for their future. And we're going to deepen regional cooperation, including with Pakistan.

Today's historic Kabul conference is another major step forward. The Afghan government presented and its international partners unanimously endorsed concrete plans to implement President Karzai's commitments to improve security, economic growth, governance, and the delivery of basic services.

The Afghan government presented its peace and reconciliation plan which the United States firmly supports. Agreement was reached on a plan in which responsibility for security in Afghan provinces will transition to Afghan security forces. In addition, Afghanistan and Pakistan reached a historic agreement to increase opportunity for people on both sides of the border. So these are all important achievements. And they go a long way towards helping create the conditions needed for Afghans to assume greater responsibility for their country.

Indeed, over the coming year, Afghans will begin to take the lead in security. And in July of next year, we will begin to transfer some of our forces out of Afghanistan. And the Kabul conference shows that Afghanistan has the support of the international community, including the United States, which will remain a long-term partner for the security and progress of the Afghan people.

As we go forward, we want to honor our fallen warriors with the respect and gratitude that they deserve, whether it's here at Dover, or in the small British town of Wootton Bassett, where people line the streets in a solemn tribute that represents the best of the British character.

With pride in their service and determination to carry on their work for a safer world, I am confident that we can be worthy of their sacrifice. And I'm confident that with my partner and friend, David Cameron, the special relationship between our countries will only grow stronger in the years to come.

Mr. Prime Minister.

DAVID CAMERON, U.K. PRIME MINISTER: Well, first of all, can I thank you, Mr. President, for welcoming me so warmly to the White House today? Thank you for the meeting, for the lunch that we had, and also for the tour of part of your home.

I have to say, I was most impressed by how tidy your children's bedrooms were. And I think if the president of the United States can get his children to tidy their bedrooms, then the British prime minister, it's about time he did exactly the same thing.

OBAMA: You have to give us notice. That's the only thing.

CAMERON: Right.

(CROSSTALK)

CAMERON: They should be in bed by now, but if they're not, they have notice.

I think we did have a very valuable opportunity today to discuss in real depth a strong and a shared agenda on Afghanistan, on global economic recovery, and on the Middle East. And this relationship isn't just, as you put it, an extraordinary special relationship. To me, it is also an absolutely essential relationship if we are going to deliver the security and the prosperity that our people need. And I thought again today, in our discussions, just how closely aligned our interests are on all of the issues that we discussed.

First on Afghanistan, there is no clearer, no more tangible illustration of Britain and America standing shoulder to shoulder in our national interests than this mission that we are engaged in together. We have British troops working to an American commander in Helmand, and we have American troops working to a British commander in Kandahar.

Today, President Obama and I took stock of progress in this vital year. We reaffirmed our commitment to the overall strategy. A key part of that is training the Afghan national army and policy so they can provide security for their country and our troops can come home.

We also agreed on the need to reinvigorate the political strategy for Afghanistan. Insurgencies tend not to be defeated by military means alone. There must also be political settlement. And to those people currently fighting, if they give up violence, if they cut themselves off from al Qaeda, if they except the basic tenets of the Afghan constitution, they can have a future in a peaceful Afghanistan.

There is real progress. Last weekend, the first Afghan-led military operation took place successfully in Helmand, Afghans defending themselves. And today, as Barack has just said, for the first time in decades, the government of Afghanistan has hosted an international conference on its own soil.

Over 40 foreign ministers and 80 delegations assembled in Kabul to monitor progress and drive forward the international strategy. That is a real achievement, and we should congratulate President Karzai on it.

President Obama and I also discussed the economy. We're both taking action that our countries need. Our destination is a strong and stable growth, a sustained economic recovery, and a reformed financial system that will never again be open to the abuses of the past. We are confident that the right steps were taken at the Toronto G-20summit to help achieve that.

The Middle East was the third area that we focused on today. We both want a secure, peaceful and stable Middle East. And that means two things.

First, as Barack has just said, Iran must give up its pursuit of a nuclear weapon. We urge the Iranian regime to resume negotiations with the international community without delay.

It's not too late for it to do so. America and Britain, with our partners, stand ready to negotiate, and to do so in good faith. But in the absence of a willing partner, we will implement with vigor the sanctions package agreed by the United Nations Security Council, and in Europe we will be taking further steps as well.

Second, we desperately need a two-state solution between Israel and the Palestinians that provides security, justice, and hope. As we were discussing over lunch, it is time for direct talks, not least because it is time for each, Israel and Palestine, to test the seriousness of the other.

On BP, which we discussed at some length, I completely understand the anger that exists right across America. The oil spill in the Gulf of Mexico is a catastrophe for the environment, for the fishing industry, for tourism.

I've been absolutely clear about that. And like President Obama, I've also been clear that it is BP's role to cap the leak, to clean up the mess, and to pay appropriate compensation.

I'm in regular touch with senior management at BP, and the president is, too, to make sure that happens. And the progress that's been made to cap the leak is a step in the right direction.

Equally, of course, BP is an important company to both the British and the American economies. Thousands of jobs on both sides of the Atlantic depend on it. So it's in the interest of both our countries, as we agreed, that it remains a strong and company for the future. And that's something that we discussed today.

And let us not confuse the oil spill with the Libyan bomber. I've been absolutely clear about this right from the start, and in our meeting we had what we called a violent agreement, which is that releasing the Lockerbie bomber, a mass murderer of 270 people, the largest act of terrorism ever committed in the United Kingdom, was completely wrong.

He showed his victims no compassion. They were not allowed to die in their beds at home surrounded by their families. So my view, neither should that callous killer have been given that luxury.

That wasn't a decision taken by BP. It was a decision taken by the Scottish government. We have to accept that under the laws of my country, where power on certain issues is devolved to Scotland, this was a decision for the Scottish executive, a decision that they took.

I know that Senator Kerry's committee is looking into these issues. My government will engage constructively with those hearings. And indeed, my foreign secretary has already set out the government's position.

So let me thank you again, Barack, for hosting me today. While at the World Cup, our teams could only manage a score draw. I believe our relationship can be a win-win.

And yes, I did enjoy drinking the 312 beer, cold, during the World Cup. I enjoyed it so much, that when I watched Germany beat Argentina, I actually cheered for Germany. That's something that's a big admission for a British person to make. So the beer was obviously very effective.

But what you said, Barack, though, about British and American soldiers fighting together, sometimes dying together, serving together, is absolutely right, and we should never forget that. Whether it's on the beaches of Normandy, whether it's in Korea, whether in Iraq, or whether now in Afghanistan, our relationship is one that has an incredibly rich history. It is based on ties of culture and history and, yes, emotion, too.

But for all those things, I think it has also an incredibly strong future that is based on results, results of a positive partnership of working together, agreeing where we agree, when we have disagreement, working through them and coming to a fair conclusion. It's a partnership that I profoundly want to make work as well as it possibly can in the years that I'm prime minister of Britain, and with you as president of the United States.

So thank you again for welcoming me here today.

OBAMA: Thank you, David.

With that, we're going to take a few questions.

And I'm going to start with Mimi Hall of "USA Today."

MIMI HALL, "USA TODAY": Thank you, Mr. President and Mr. Prime Minister.

I wanted to ask you a little bit more about BP. You mentioned, Mr. Prime Minister, your decision to cooperate, et cetera. But you said we shouldn't confuse the two.

Have you flatly ruled out opening a government investigation into the events around the release of the bomber?

And President Obama, how do you feel about a congressional investigation into this? Would you like to see that happen, or do you think that confuses the two events?

OBAMA: Well, why don't I start off, and then I'll throw it over to David.

I think all of us here in the United States were surprised, disappointed and angry about the release of the Lockerbie bomber. And my administration expressed very clearly our objections prior to the decision being made and subsequent to the decision being made.

So we welcome any additional information that will give us insights and a better understanding of why the decision was made. But I think that the key thing to understand here is that we've got a British prime minister who shares our anger over the decision, who also objects to how it played out.

And so I'm fully supportive of Prime Minister Cameron's efforts to gain a better understanding of it, to clarify it. But the bottom line is, is that we all disagreed with it. It was a bad decision. And going forward, that has to inform how we approach our relationship with respect to counter-terrorism generally.

Now, one of the things that I want to emphasize that I think may get lost in this current debate is the extraordinarily strong ties between our two countries when it comes to fighting terrorism. We probably have the best coordination and cooperation of any two countries in the world, and those relationships are vital and they keep people safe on both sides of the Atlantic. And I want to make sure that even as we may express concern about what happened with respect to the release of this particular individual, that we stay focused on the cooperation that currently exists and build on that cooperation to make sure that there is no diminution of our joint efforts to make sure that the kind of attacks that happened over Lockerbie do not happen again.

CAMERON: Well, I agree with absolutely what's been said about the importance of the security cooperation, something we discussed today.

On Megrahi, look, I'm not standing here today and saying it was a bad decision to release Megrahi because I'm here. I said this a year ago, at the time, that it was a bad decision, it shouldn't have been made. The British government as well should have been clear that it was a bad decision, rather than going along with it.

I took that very clear view. This was the biggest mass murder in British history, and there was no business in letting him out of prison.

In terms of an inquiry, there has been an inquiry by the Scottish parliament into the way the decision was made. The British government, the last British government, released a whole heap of information about this decision. But I've asked the cabinet secretary today to go back through all of the paperwork and see if more needs to be published about the background to this decision.

But in terms of an inquiry, I'm not currently minded that we need to have a U.K.-based inquiry on this, partly for this reason -- I don't need an inquiry to tell me what was a bad decision. It was a bad decision.

And if you like, the big fact that's changed over the year that makes it an even worse decision is the fact that, of course, Megrahi is still free, at liberty in Libya, rather than serving the prison sentence in Scotland, as he should be doing. So, that's what we're going to do, is go back over this information, see if more needs to be published. And, of course, in terms of the congressional hearing, make sure that proper cooperation is extended to it.

OBAMA: Somebody you want to call on?

CAMERON: Right.

I think James Lamdale (ph).

QUESTION: Just to stay on that subject if we may, Mr. Prime Minister, first of all, would you be prepared to talk to your predecessors, Tony Blair and Gordon Brown, to get their agreements to release any documents if they are relevant to the paper search that the cabinet secretary will undergo?

And, Mr. President, can I ask you, the prime minister says he opposes an inquiry. Hillary Clinton has demanded an inquiry.

Where do you stand?

OBAMA: Go ahead, David. CAMERON: Well, first of all, on the documents, the proper process here is that the cabinet secretary should look back over this decision and the circumstances surrounding it, should identify those documents that should be published. It should be right that ministers in the previous government should be consulted about the publication of those documents, and of course we will consult with them over that. But in my view, there is absolutely no harm to be done in giving the fullest possible explanation of the circumstances surrounding this decision.

I think the key thing, though, to remember is that in the end, it was a decision by the Scottish executive. On the issue of an inquiry, as I said, I'm not currently minded to hold an inquiry because I think publishing this information, combined with the inquiry there's already been, will give people the certainty that they need about the circumstances surrounding this decision.

But the key thing is to get the information out there so people can see. But I don't think there's any great mystery here.

There was a decision taken by the Scottish executive. In my view, a wholly wrong and misguided decision, a bad decision, but their decision, nonetheless. That's what happened.

And I didn't think we need an extra inquiry to tell us that that's what happened. But the information, as I've said, will be gone over and published as appropriate. And, of course, I'll be consulting with previous ministers and prime ministers, as you should do in the normal way.

OBAMA: I think the simple answer is, we should have all the facts. They should be laid out there. And I have confidence that Prime Minister Cameron's government will be cooperative in making sure that the facts are there.

That will not negate the fact that, as the prime minister indicated, it was a very poor decision, and one that not only ran contrary to, I think, how we should be treating terrorists, but also didn't reflect the incredible pain that the families who are affected still suffer to this stay. And my administration is in regular contact with these families, and this was a heartbreaking decision for them that reopened a whole host of new wounds.

So my expectation is, is that the facts will be out there. And as David indicated, with all the facts out, I think we're going to be back to where we are right now, which was it was a decision that should not have been made and one that we should learn from going forward.

Laura Meckler.

LAURA MECKLER, "WALL STREET JOURNAL": Thank you.

Mr. President, in your opening statement, you referred to the fact that the British government has been taking some very tough steps towards -- to get their budget in order. And you said you had committed to cut the deficit in half.

Could you talk about whether you think that those decisions are going to be -- the decisions that they're making there are going to need to be made here on a similar level beyond pledges?

And Mr. Prime Minister, specifically, could you address the matter of what role BP had in lobbying for the release of this man and whether an inquiry or the review that you're planning is going to look at that specific question?

Thank you.

OBAMA: When I came into office in January of 2009, I was very clear at the time, even before we knew the severity of the recession that we would experience, that we have a structural deficit that is unsustainable, and that for our long-term growth and prosperity, we are going to have to get a handle on that. I talked about that during my campaign. I talked about it in the days after I was elected. I talked about it after I had been sworn in.

We had an emergency situation on our hands, and so the entire world, working through the G-20, coordinated in making sure that we filled this huge drop-off in demand, we got the economy growing again. And we had to take a number of steps, some of which were unpopular and that, yes, added to the short-term deficit.

What I also said at the time was we are then going to make sure, number one, that we pay down whatever additional deficit had been added as a consequence of the Recovery Act and other steps that we had to take last year. But then we're still going to have to go back and deal with these long-term structural deficits.

And, in fact, in the first G-20 visit that I made in April to England, I was very clear to the rest of the world that what they cannot rely on is an economic model in which the United States borrows, consumers in the United States borrow, we take out home equity loans, we run up credit cards to purchase goods from all around the world. We cannot alone be the economic engine for the rest of the world's growth. So that rebalancing ended up being a central part of our long-term strategy working with the G-20.

Now, what we've done is we've initiated a freeze on our domestic discretionary budget. We are on the path to cutting our deficits in half. We have put forward a fiscal commission that is then going to examine, how do we deal with these broader structural deficits?

So this isn't just an empty promise. We've already started taking steps to deal with it, and we're going to be very aggressive in how we deal with it.

Now, our two countries are in slightly different situations. Their financial situation is slightly different. Their levels of debt relative to GDP are somewhat higher. And as David and I discussed when we saw each other in Toronto, the goal here is the same, and we're all moving in the same direction. But there's going to be differentiation based on the different circumstances of different countries in terms of how they approach it tactically and at what pace. But I can assure you this -- that my administration is squarely committed not just to dealing with the short-term deficit and debt, which in some ways is the least troubling aspect of this problem. What we're going to have to tackle are some big structural reforms that are going to be tough, and they're going to be that much tougher because we're coming out of a recession as we do it.

But I think that as we continue to see economic growth, as we continue to see the economy heal from last year, that the American people are going to want to approach this problem in a serious, realistic way. We owe it for the next generation. And my hope is, is that we're going to end up getting a bipartisan solution to this thing that is realistic.

And one concern that I have, obviously, is the policies of deficits and debt. When I announced that I was in favor of this fiscal commission, at the time I had a number of Republicans who were co-sponsors of the legislation who suddenly reversed themselves because, I suppose, I supported it.

And fortunately, what I've seen so far, all the reports from the fiscal commission is that people are serious about this. Both Republicans and Democrats on the commission are taking their task seriously. I think it's going to be a good report, but it's still going to require some tough choices, and we're committed to pursuing those tough choices after we get that report.

CAMERON: Thank you.

You asked about the role of BP. I mean, the role of BP and any lobbying they may have done is an issue for BP and an issue that they should explain themselves.

I mean, the decision to release Megrahi, though, was a decision made by the Scottish government. And I haven't seen anything to suggest that the Scottish government were in any way swayed by BP.

They were swayed by their considerations about the need to release him on compassionate grounds, grounds that I think were completely wrong. I don't think it's right to show compassion to a mass murderer like that. I think it was wrong.

But it's a matter for BP to answer what activities they undertook. But the Scottish government made its decision and has explained its decision on many occasions, and I'm sure will explain it again.

I'm very keen that we are clear here that BP should rightly be blamed for what has happened in the Gulf and have real responsibilities to cap the well, to clean up the spill, to pay compensation, all of which they are getting on with, including putting aside the $20 billion pounds (sic) in the escrow account -- $20 billion, sorry. I think they've made progress on that, and further progress needs to be made. I think it's important to separate that from the decision to release Megrahi, which, as I say, was a decision made by the Scottish government and has so far been shown in investigations by the Scottish parliament was a decision which I wholly disagree with, but nonetheless was taken in an appropriate way.

I think we have a question from Tom Bradby.

TOM BRADBY, ITV NEWS: Mr. President, Tom Bradby, ITV News.

Quite a lot of people in the U.K. feel that your determination as a country to continue to push for the extradition of computer hacker and Asperger sufferer Gary McKinnon is disproportionate and somewhat harsh. Do you think it is time to consider some leniency in this case?

And Prime Minister, you've expressed strong views on this matter, suggesting that Mr. McKinnon shouldn't be extradited. You actually, Prime Minister, have expressed even stronger views.

Did you discuss that with the president today? And if not, would now be a good moment to share your views with us once again?

CAMERON: Do I go?

OBAMA: Please, go ahead.

CAMERON: It is something that we discussed in our meeting. I mean, clearly, there's a discussion going on between the British and the Americans about this, and I don't want to prejudice those discussions.

We completely understand that Gary McKinnon stands accused of a very important and significant crime in terms of hacking into vital databases. And nobody denies that that is an important crime that has to be considered. But I have had conversations with the U.S. ambassador, as well as raising it today with the president, about this issue, and I hope a way through can be found.

OBAMA: Well, one of the things that David and I discussed was the increasing challenge that we're going to face as a consequence of the Internet and the need for us to cooperate extensively on issues of cybersecurity. We had a brief discussion about the fact that although there may still be efforts to send in spies and try to obtain state secrets through traditional Cold War methods, the truth of the matter is these days, where we're going to see enormous amounts of vulnerability when it comes to information, is going to be through these kinds of breaches in our information systems.

So we take this very seriously.

And I know that the British government does as well. Beyond that, you know, one of the traditions we have is: the president doesn't get involved in decisions around prosecution, extradition matters.

So what I expect is that my team will follow the law. But they will also coordinate closely with what we've just stated as an ally that is unparalleled in terms of our cooperative relationship. And I trust that this will get resolved in a way that underscores the seriousness of the issue, but also underscores the fact that we work together and we can find an appropriate solution. All right?

Thank you very much, everybody.

UNIDENTIFIED MALE: Thank you very much.

ALI VELSHI, CNN ANCHOR: And that is President Barack Obama and new U.K. Prime Minister David Cameron leaving after a press conference at the White House.

David Cameron is saying a number of things of interest. One that he understands the widespread anger in the United States about BP. Two, having a discussion about the role that the U.K. government played in the freeing of the convicted bomber in the Lockerbie bombing, saying that he didn't agree with it then and he doesn't agree with it now, but he doesn't think there's a need for an inquiry.

Let's take a quick break. I'll come back and have a conversation with Ed Henry about what was said in that press conference.

(COMMERCIAL BREAK)

VELSHI: OK. We're going to do the stakeout at the White House a little bit early right now because our senior White House correspondent, Ed Henry, was staking it out. He was actually in there for the press conference that just finished between U.S. President Barack Obama and U.K. Prime Minister David Cameron.

There he is, Ed Henry, right in the room where this just happened.

Any surprises there, Ed?

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, no. I mean, I think what they were really trying to show was a personal side. And after, you know, a time where President Obama and former Prime Minister Gordon Brown really did not have a lot of personal chemistry --

VELSHI: Right.

HENRY: -- what struck me was how much the two of them were trying to do some of the jokes about how they were betting on the World Cup over beer. The prime minister one time is joking about how drinking some of the president's beer during the Germany/Argentina game, he started rooting for Germany saying it's difficult for a British leader to admit rooting for Germany. A little joke there, perhaps. As well as the prime minister talking about how he got a tour of the residence and how noticed how tidy the rooms of Sasha and Malia Obama are and the president jumping in and saying they knew the prime minister was coming.

Certainly a lot of substance here as well -- but they were trying to show this is much different and they're turning the page from the past alliance which was viewed around the world as not being that strong. That said, on substance, I don't think there were many surprises except perhaps a little bit on the Lockerbie bomber. You heard one of the British reporters press President Obama on the fact that his own secretary of state has said there should be a British inquiry into why the Lockerbie bomber was released so early.

And given the chance to defend his secretary of state, instead he kind of deferred to the prime minister, kind of bucked him up a little by saying, after the prime minister said, "I'm not going to have a British government inquiry," even though there's international pressure to do that, the president sort of backed away and said, "I'm going to leave it to him. I trust that the prime minister releasing some of these documents will be enough," and did not force his hand on an -- you know, on a British inquiry of what has become a big international controversy.

The final thing I'll note as well on that is on budget deficits when President Obama was pressed on that. There's a real sharp difference there that these two leaders didn't really want to get into.

VELSHI: Right.

HENRY: President Obama talked about cutting deficits long- term. Prime Minister Cameron is pushing hard this austerity plan in the short-term, not talking about government stimulus like we've had here in the United States, saying we really need to cut the deficit and long-term debt.

In fact, one of the British reporters told me before the news conference, an interesting little tidbit, that Prime Minister Cameron, as part of that austerity plan, didn't come over in a government jet, instead flew commercially on a British Airways to show that he himself is saving some money. I can't imagine President Obama or any president frankly doing that for security reasons. But in this case, I'm told by a British reporter that the prime minister did that to show that he's trying to save some money.

It gives you an idea of some of the difference between the two nations.

VELSHI: Wow! That's kind of interesting.

HENRY: They didn't really get into there.

VELSHI: All right. You could see from the body language, the fact -- I mean, it was kind of like watching the stakeout with the two of us, they were calling each other by their first names, not their titles, David and Barack.

HENRY: You don't hear a lot of people call him Barack. That's true.

VELSHI: I know. I mean, that was unusual.

And Barack Obama has more in common with David Cameron's predecessor politically. David Cameron is conservative. This austerity plan -- you wouldn't know this because you were off on some kind of vacation. But at the G20, this was really underscore the difference between Barack Obama and the U.S.' view they want to continue government spending until consumers can step up to the plate again, versus the British view that it's time to pull back, it's time to cut spending and these austerity programs.

So, it's interesting that you just didn't see them break out into opposition anywhere here. It did seem like two very friendly guys -- as you said, a relationship that President Obama did not have with Prime Minister Gordon Brown.

HENRY: You're right. And they're trying to highlight that. And it's not a surprise that they would sort of gloss over some of the differences. You mentioned the budget deficit. But as well, I just think, on Afghanistan, they kept highlighting where they stand together.

VELSHI: Right.

HENRY: And that's an important issue for both these men. We talk a lot here in the United States about the pressure President Obama faces in terms of having close to 100,000 U.S. troops there. The Brits have 10,000, which is the second biggest contribution among a single country. It's a big deal.

So, yes, they're friends. Maybe not quite a bromance yet but they're to show it.

VELSHI: Well, here's -- here's what's interesting because a lot of -- there was a danger of this relationship between the two of them getting off to a rocky start because of BP.

HENRY: Absolutely.

VELSHI: And the president has had to have conversation with David Cameron about BP in the past. That certainly wasn't overshadowing this press conference.

HENRY: They really pushed that down -- you make a great point -- because Prime Minister Cameron on at least two occasions, I heard him talking about let's not confuse BP with the Lockerbie case because there's been an allegation that BP was lobbying to release the Lockerbie bomber because of some oil contracts they had. He, sort of, said, look, let's keep this as separate issues, number one. And number two, you're right, they could have been fighting a lot more on BP rhetoric from the Obama administration. But instead, they really tried to gloss that over.

And in fact, President Obama didn't really get into that at all, you notice, in his opening statement. It took Cameron to do that. And the prime minister said, look, they have to be responsible. They have to clean up the Gulf. This is a catastrophe.

That was important for the British prime minister to say. But even while he said they need to remain a viable company, they can't be beaten up repeatedly, clearly, he was saying what the White House wanted right there.

VELSHI: All right. Ed, I'd love to talk to you longer, but it's a special day for you. It is Ed Henry's birthday today, our senior White House correspondent. So, they're ushering you out because I bet somebody has some kind big cake or something. You, by the way, do not look -- you look the same as you did last year when you turned 20.

HENRY: Thirty-nine, and I'm told it's all downhill from here. So, I'm going to enjoy this year, final one before 40. And, by the way, I know you gave me some gifts upon your return from South Africa yesterday --

VELSHI: I did. That was a big miscalculation.

HENRY: -- but you can't -- you cannot re-gift those for my birthday. You clearly gave them to me, we have the tape, before my birthday, before you knew my birthday was today.

VELSHI: Yes.

HENRY: So, let's step up, all right?

VELSHI: This will teach me to look a day or two ahead in my schedule. Had I known it was your birthday, I would have given you the tie yesterday and the cuff links today.

HENRY: You could have checked it out on the Twitter even.

VELSHI: I should have done that. I'll keep an eye on that, about Twitter.

Ed Henry, always a pleasure to see you. Ed Henry, our senior White House correspondent at the stakeout -- maybe steakhouse later on tonight -- Ed Henry for his birthday.

HENRY: Thanks.

VELSHI: All right. Time now to check out some top stories.

The Senate Judiciary Committee today approved the Supreme Court nomination of Elena Kagan. That's not the full deal, though. The entire Senate has to vote on that. That will probably happen sometime in early August.

In West Virginia, two-term governor, Joe Manchin, announces that he will run for the late Robert Byrd's U.S. Senate seat. Primaries will be held August 28th, ahead of a special election that will take place in November.

And the Senate is expected to pass an extension of unemployment benefits at any moment. You're watching live pictures from the floor of the U.S. Senate. A cloture vote is underway. Republicans have been blocking the measure, insisting that it be paid for by off- setting spending cuts instead of adding to the deficit. Some people would like to come out of remaining money in the stimulus.

Democrats should get the 60th vote needed to break the deadlock because the late Senator Robert Byrd's temporary replacement, Carte Goodwin, was sworn in earlier today. He's almost as young as Ed Henry.

Before the Gulf oil disaster, there was hurricane Katrina. And they're still rebuilding businesses along the Mississippi coastline. We're going to take you there -- coming up next.

(COMMERCIAL BREAK)

VELSHI: Nearly every business and homeowner was slammed by Hurricane Katrina in Bay St. Louis, Mississippi. That started a big movement inland because hardly anybody wanted to risk rebuilding on the water until now.

Tom Foreman met with one family who's "Building Up America" by bucking that trend.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): Trapani family restaurant has great cooks, loyal customers, the owners, Jolynne and Tony, are dedicated, hard-working --

TONY TRAPANI, RESTAURANT OWNER: These crab cakes right here, no bread in them whatsoever.

FOREMAN: But situated far from the water, they lack one thing: location, location, location.

T. TRAPANI: This place needs to be on the beach. This whole area is all about boating and water and fishing and everything. Now, we're doing OK but we can't stay here forever. We have to move back to that beach in order to help the community out.

FOREMAN: For a dozen years, the Trapani's place was right on the waterfront and they had lots of company.

(on camera): This whole area out here was filled with businesses.

JOLYNNE TRAPANI, RESTAURANT OWNER: Right.

T. TRAPANI: Businesses and all of this was businesses -- and that was a coffee shop.

FOREMAN (voice-over): Plenty of restaurants have opened since Katrina, there are now more on this coast than before the storm. But they are building inland, not on the water and especially not now with the danger of oily tides in the mix.

So, the hospitality and restaurant association is offering classes for aspiring restaurateurs helping with business plan, running special promotions to attract customers, all because they know they need businesses on the beach to build up their part of the Gulf.

RICHARD CHENOWETH, MISS. HOSPITALITY & RESTAURANT ASSN.: It's just like having a wheel with all the gears in it. You know, you have the little sprockets going around and if one of those goes and you start slipping like this and, you know, it kind of goes down.

FOREMAN (on camera): You need them all?

CHENOWETH: We need them all.

FOREMAN (voice-over): The Tripanis have made up their minds. Soon, they will break ground, rebuilding right back where Katrina took them down and where the oil still threatens.

(on camera): Why is it so important for you to be here?

J. TRAPANI: We always knew that this is a big puzzle, a piece of the puzzle that we can replace to bring back this community.

T. TRAPANI: We are determined to rebuild this thing.

FOREMAN (voice-over): Because they are convinced if they build it, not only customers but other businesses will come, too.

(END VIDEOTAPE)

FOREMAN: They have a two-fold challenge here, Ali. They have to get the businesses to come back to the beach because they know that's where tourists expect to find them.

The businesses -- well, I guess, it isn't two-fold. It's really three-fold. The businesses then have to find sources for their seafood particularly right now since the Gulf has got the big oil problem out there. They want the Gulf product back. But right now, they have to find alternative sources.

And they have to convince people that what they're serving is good and it's safe and everything else. And I'll tell you, you go right over here to this (INAUDIBLE), you'll find out, Ali, it is good and it's safe. And it's as good as it's always been.

But that's the challenge they're facing here as they try to build up again. So, I had to wait a long time there, Ali, with the president and all. So, we went ahead and got lunch.

VELSHI: Yes, you know, I have -- everybody knows I really being enjoy being on that CNN Express. I think you and I like spending time on that. And until now, the secret hasn't been let out. But I've been back for two days and so far, I've seen you do a story on music, which I'm sure was a real struggle for you, and now, one on the restaurant.

You're getting soft. I got to say. I thought you were a hard- nosed investigative reporter. You've been listening to music and eating food in the -- in the Gulf. No dispute.

FOREMAN: Yes. I'm kind of drifting there, Ali. I wasn't really listening to you speak.

VELSHI: What have you got? What is that?

FOREMAN: No, I will say -- this is a shrimp po'boy made by Mr. Fontenot (ph) over here. He's one of my old pals from back in New Orleans. So, you know, the food along here is spectacular food.

VELSHI: Yes.

FOREMAN: You know, I'm a New Orleans kind of guy and everybody knows New Orleans is spectacular. But I'm telling you, all along the Gulf Coast here, people have just a really rich, spectacular way of cooking. And I'll tell you, nobody's more worried about the quality of their product than the people who are selling it here.

VELSHI: Yes.

FOREMAN: And that's one of the messages they really want to get out to people because they know people are worried about their health. They're worried about the oil. And everyone that I've met, anything to do with the food industry and the seafood industry, said up front, listen, we are more concerned than anyone bouncing back the right way --

VELSHI: Right.

FOREMAN: -- and making sure the product we give to people is as good as ever and as safer as ever.

VELSHI: You know, what's tomorrow's story? How you might hurt your --

(CROSSTALK)

VELSHI: Tomorrow's story how you might hurt your back if you're fishing for too long or something like that?

FOREMAN: Yes, I don't know. I know I'm hurting my back hoisting this shrimp po'boy. I'm going to have to sit down and eat it now.

(LAUGHTER)

VELSHI: Great to see you, Tom. As always, thanks very much. Give my regards to everybody on my bus. And in Bay St. Louis, great town -- I was in about a month ago. Thanks very much, Tom Foreman.

Take a look at the Senate floor right now, they are waiting to extend that vote on unemployment benefits. As you know, Carte Goodwin was just sworn in as the temporary senator from West Virginia, replacing Senator Robert Byrd who passed away. That gives their Democrats their 60 votes again.

They've been trying to get unemployment benefits extended for some time. It's failed three times. They're going to do this any moment now. They've had the cloture vote. We'll bring it to you when it happens.

(COMMERCIAL BREAK)

VELSHI: OK. Time now for some "Globe Trekking."

Let's start in Afghanistan -- in Kabul, there's an International Donors Conference, about 70 different nations are represented. President Hamid Karzai made a very bold statement right now. He says that he wants -- Afghanistan wants total control of all security operations by 2014, saying this is a national objective -- these are his words -- "that we have to fulfill and we must."

Now, this comes amidst increased attacks by the Taliban. At least 40 American troops have been killed this month. And that makes July the deadliest month for U.S. forces since the war began in 2001.

Now, Secretary of State Hillary Clinton sort of received that cautiously. She says that at some point, Afghans will take control of their own security. But it won't be for some time to come.

Let's take you over to China right now. A very sad story going on over there, the Three Gorges Dam, let me show you some pictures of it right now on the Yangtze River. The dam is being pressured right now. Floodwaters in that huge reservoir rose 13 feet overnight and are now just 20 feet below the dam's maximum capacity.

But there had been flooding in the area. One of the -- this is a very controversial dam to build in the first place. And one of the reasons was cited as flood control.

There are 34 people now reported dead by flooding in the area. Millions, of course, have been affected by the flooding. We'll continue to keep an eye on that.

OK. If you're slacking on your Internet slang, today's "Wordplay" could save your job or at least your reputation.

Stay with us.

(COMMERCIAL BREAK)

VELSHI: OK. Technically, today's "Wordplay" doesn't focus on a word. It's an acronym -- four little letters that could help prevent a big problem. If you've managed to miss them this long, we are going way beyond LOL. The Web acronym all of us working just need to know about is NSFW -- give your mom or dad a heads-up if they're not tech savvy. It means "not safe for work." And it should be a red flag if you're opening emails or clicking on links at work.

If your friend just sent you something with NSFW in the subject line, don't go there. An example of an NSFW link for folks who haven't quite got it would be Playboy.com. An example of an SFW or "safe for work" site is "Playboy's" new Web site, the Smokingjacket.com because Hefner has removed almost everything but those famous articles that folks read "Playboy" for.

But you know what our "Wordplay" could have been today? "Context." I'm going to make that the focus of today's "XYZ" on the whole Shirley Sherrod scenario -- coming up next.

(COMMERCIAL BREAK)

VELSHI: Time now for the "XYZ" of it.

We've been pretty bowled over by the story of Shirley Sherrod today, the former Georgia official with the U.S. Agriculture Department who gave a speech in March which she says was meant to be a teachable moment but ended up costing her her job.

Sherrod told a mostly black audience at an NAACP event that 24 years ago, long before she worked with the Agriculture Department, she didn't help a white Georgia farmer in trouble as much as she could have. In the same speech, she went on to describe how she later underwent a transformation of her view on the matter.

But that's not the part that went viral on the Internet. A small portion of her 41-minute speech was posted by a conservative blog, earning her a rebuke from the NAACP and she says, pressure from the Agriculture Department to resign.

The wife of the white farmer came on CNN to say she thinks Sherrod helped save their farm and that Sherrod has been treated unfairly. The NAACP says it's reviewing the video and wants to speak to Sherrod and the farmer. We haven't heard back from the Agriculture Department.

But later tonight, at 8:00 p.m. Eastern, we'll hear from Andrew Breitbart, the conservative blogger who brought the speech to light.

Now, if this really is a teaching moment gone wrong, it would be sad for America. Admission of racial bias practiced 24 years ago and a subsequent transformation of one's own attitude should be applauded not punished. But as we learned in the last 24 hours, this is a complicated story with many players.

Stay with CNN. Rick's going to be following this. He's got a special at 4:00. We're going to be following this story closely to see whether or not the now newly-unemployed Shirley Sherrod is a victim of race politics in America.