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CNN Live Today

Presidential News Conference

Aired January 26, 2005 - 09:59   ET

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

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


BILL HEMMER, CNN ANCHOR: On the calender, we're four days away from an election in Iraq. We're about a week away from State of the Union Address in Washington, and we're about two minutes away from seeing the president inside of the briefing room. Here is John King there -- John.
JOHN KING, CNN CORRESPONDENT: Bill, I'll sit momentarily as the president comes in.

You mentioned, and Suzanne was just discussing, all of the international challenges for this president, and they are many. He's also of course one day away from a meeting with senior Senate Republicans, senior Republicans in Congress, telling him he has a very tough job ahead, and he better do a better job if he wants to sell his ambitious domestic agenda, including, and beginning, with his plans to revamp Social Security. The president promising those senators yesterday he would try to do that. Perhaps no surprise that he's coming here to the White House briefing room the morning after. Challenges overseas, those deaths today in Iraq, those Marines killed in a helicopter crash, the upcoming elections, challenges here at home as well.

Perhaps a little glasnost from the president. We're seeing and hearing a bit more from him at the beginning of the second term. Obviously fresh from the inaugural, preparing for his State of the Union Address, and just about a minute away from coming here to the briefing room.

HEMMER: All right, John, thanks. Stand by there in the briefing room as we await the president, Soledad. We do anticipate a little more about what's happening in Iraq and the elections anticipated for Sunday. May hear a little bit, too, about Social Security, which is said to be one of the focuses for the State of the Union Address next Wednesday night.

If you're just joining us this is the new we have out of Iraq that broke several hours ago. A helicopter crash in western Iraq killed 31 Marines on board. Cause of that crash is unknown. We are also reporting about the same time four U.S. Marines killed in action in Al Anbar province. That's the same province, an enormous swathe of land west of Baghdad, killed in action in a separate incident. And another U.S. soldier reported dead as well, which brings the total in the past 24 hours to 36 dead, U.S. military personnel in Iraq, which, by our count would mean the most deadly day for the U.S. military since Operation Iraqi Freedom began back in March of 2003. We'll see the president. We should hear more on this and also the elections again Sunday. O'BRIEN: We should explain to folks why they're looking at a podium there. We are waiting. That's the podium where the president where the president is going to be addressing reporters and then taking some questions. Earlier we sort of described it as a little bit unusual.

Here's the president. Let's listen in.

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

With a second term under way and a new Congress at work, we're moving forward on great goals for our country. In my inaugural address, I renewed this nation's commitment to expanding liberty at home and promoting liberty abroad.

Because our own freedom is enhanced by the expansion of freedom in other nations, I set out the long-term goal of ending tyranny in our world. This will require the commitment of generations. But we're seeing much progress in our own time.

In late 2004, the people of Afghanistan defied the threats of terrorists and went to the polls to choose their leaders. The Palestinian people have elected a president who has renounced violence. This week, Ukraine inaugurated a new president, President Yushchenko. And just four days from now, the people of Iraq will vote in free national elections.

Terrorists in that country have declared war against democracy itself and thereby declared war against the Iraqi people themselves. Yet the elections will go forward.

BUSH: Millions of Iraqi voters will show their bravery, their love of country and their desire to live in freedom.

Across the world, freedom has deadly enemies. Yet across the world freedom has great and growing momentum.

And there have been enormous sacrifices made by some of our citizens in the spread of freedom. Families suffer as a result of the loss of a loved one.

Continue to offer condolences and prayers for those who do suffer. We will honor the memories of their loved ones by completing our missions.

Next week, I will report to Congress on the state of the union and describe in more detail a legislative agenda to serve the goals I have outlined.

I'll ask the House and Senate to act soon on the issue of Social Security so that we don't pass a bankrupt system on to our children and our grandchildren.

BUSH: I'm open to good ideas from members of Congress. I'll work with both parties to get results. Any solution must confront the problem fully and directly by making the system permanently solvent and providing the option of personal accounts.

For this new term, I've assembled an exceptional Cabinet and several members are taking office this week. In addition to speedy action on all my nominees, I especially urge the Senate to confirm Condoleezza Rice today and to promptly act and confirm Judge Al Gonzalez.

We have a full agenda. I'm looking forward to the work ahead and now I'm looking forward to answering some of your questions.

QUESTION: Mr. President, the insurgents in Iraq are threatening to kill anyone who comes out to vote on Sunday. Do you think they'll succeed in killing or scaring away enough people so that the elections will be rendered seriously flawed or not credible?

BUSH: We anticipate a lot of Iraqis will vote.

Clearly, there are some who are intimidated. Surveys show that the vast majority of people do want to participate in democracy. And some are felling intimidated.

I urge all people to vote. I urge people to defy these terrorists.

These terrorists do not have the best interests of the Iraqi people in mind. They have no positive agenda. They have no clear view of a better future. They're afraid of a free society.

I am impressed by the bravery of the Iraqi citizens.

I am heartened by the strong words of Prime Minister Allawi. I talked to him yesterday on the phone. He is determined to lead his country forward into the elections.

I appreciate the hard work of the United Nations, which is providing good leadership on the ground. And I anticipate a grand moment in Iraqi history.

BUSH: And if we'd have been having this discussion a couple of years ago and I just stood up in front of you and said the Iraqi people would be voting, you would look at me like some of you still look at me, with a, kind of, blank expression.

(LAUGHTER)

People are voting. And this is a part of a process to write a constitution and elect a permanent assembly. And it's exciting times for the Iraqi people.

QUESTION: What would be a credible turnout number?

BUSH: The fact that they're voting in itself is successful.

Again, this is a long process. It is a process that will begin to write a constitution and then elect a permanent assembly.

BUSH: And this process will take place over this next year.

It is a grand moment for those who believe in freedom.

QUESTION: Your inaugural address has been interpreted as a new aggressive posture against certain countries, in particular, Iran. Should we view it that way?

BUSH: My inaugural address reflected the policies of the past four years that said -- that we're implementing in Afghanistan and Iraq. And it talked about a way forward.

I think America is at its best when it leads toward an ideal. And certainly a world without tyranny is an ideal world.

The spread of freedom is important for future generations of Americans. I firmly believe that free societies are peaceful societies. And I believe every person desires to be free.

And so I look forward to leading the world in that direction for the next four years.

QUESTION: (inaudible) a policy shift?

BUSH: No. As I said, it reflects the policy of the past, but it sets a bold new goal for the future. And I believe this country is best when it heads toward an ideal world, we are at our best.

And in doing so, we're reflecting universal values and universal ideas that honor each man and woman, that recognize human rights and human dignity depends upon human liberty.

And it's -- I'm looking forward to the challenge. And I'm looking forward to reaching out to our friends and allies to convince them the necessity to continue to work together to help liberate people.

QUESTION: Mr. President, let me take you up on that if I may.

Last month in Jordan, a gentleman named Ali Hattar was arrested after delivering a lecture called "Why We Boycott America." He was charged under Section 191 of their penal code for slander of government officials. He stood up for democracy, you might say.

And I wonder if here and now you will specifically condemn this abuse of human rights by a key American ally.

QUESTION: And if you won't, sir, then what, in a practical sense, do your fine words mean?

BUSH: I am unaware of the case. You've asked me to comment on something that I didn't know took place.

I urge my friend, His Majesty, to make sure that democracy continues to advance in Jordan. I noticed today that he put forth a reform that will help more people participate in future governments of Jordan. I appreciate His Majesty's understanding of the need for democracy to advance in the greater Middle East.

We visited with him at the G-8 and he has been a strong advocate of the advance of freedom and democracy.

Let me finish.

Obviously we're discussing a process. As I said in my speech, not every nation is going to immediately adopt America's vision of democracy and I fully understand that.

BUSH: But we expect nations to adopt the values inherent in a democracy, which is human rights and human dignity, that every person matters and every person ought to have a voice. And His Majesty is making progress toward that goal.

I can't speak specifically to the case. You're asking me to speak about a case and I don't know the facts.

QUESTION: Will you then -- does your inaugural address mean that, when it comes to people like Mr. Hattar, you won't compromise because of a U.S. ally, and you will stand...

BUSH: Again, I don't know the facts. You're asking me to comment on something. I don't know the facts.

Perhaps you are accurate in your description of the facts, but I have not seen those facts.

Now, nevertheless, we have spoken out in the past and will continue to speak out for human rights and human dignity, and the right for people to express themselves in the public square.

QUESTION: Mr. President, in the debate over Dr. Rice's confirmation, Democrats came right out and accused you and the administration of lying in the run up to the war in Iraq. Republicans, in some cases, conceive it that mistakes have been made.

Now that the election is over, are you willing to conceive that any mistakes were made? And how do you feel about that?

BUSH: Let me talk about Dr. Rice. You asked about her confirmation.

Dr. Rice is an honorable, fine public servant who needs to be confirmed. She will be a great secretary of state.

And Dr. Rice and I look forward to moving forward. We look forward to working to make sure the Iraqis have got a democracy. We look forward to continue to make sure Afghanistan is as secure as possible from potential Taliban resurgents. We look forward to spreading freedom around the world. And she is going to make a wonderful secretary of state. QUESTION: No reaction to the lying?

No reaction?

(LAUGHTER)

BUSH: Is that your question? The answer's no.

BUSH: Next.

(LAUGHTER)

QUESTION: Sir, I'd like to ask you about the deficit.

But before I do that, there is a developing story this morning, the helicopter crash in Iraq. Can you tell us what you know about that and what may have caused that and your reaction to it?

BUSH: I know that it is being investigated by the Defense Department.

And, obviously, any time we lose life it is a sad moment.

QUESTION: You don't know whether it was weather-related or...

BUSH: Not yet.

I've heard rumors, but -- wait till the facts.

QUESTION: You're preparing to ask Congress for an additional $80 billion in war spending in Afghanistan and in Iraq. The White House is also prepared to predict a budget deficit of $427 billion for this year.

You talk about sacrifice in this country. Do you think that you're really asking Americans to sacrifice financially when you're asking them to fund the war, yet at the same time perhaps pay an exorbitant amount to set up private accounts and Social Security, pay for a prescription drug benefit, as well as other spending plans?

BUSH: So the...

QUESTION: And tax cuts? Make those permanent? It's a lot of money.

BUSH: OK, let me see if I can dissect your question into separate parts.

First, Americans pay a lot of taxes. They pay tax at the federal level. They pay tax at the state level. They pay tax at the local level. Americans do pay taxes.

Secondly, I made the commitment to our troops, we'll fund them. And that's exactly what we're doing. We've got people in harm's way. I look forward to working with Congress to fund what is necessary to help those troops complete their mission. Thirdly, we have presented a plan in the past and will present one here later on this -- in February, that will show -- cut the deficit in half.

BUSH: And it's obviously going to require cooperation with the United States Congress to make some very difficult decisions when it comes to funding the budgets.

Fourthly, we not only were attacked and therefore needed to defend ourselves, we also had a recession. And I felt it was very important to reduce the tax burden on the American people to get out of the recession. In other words, we were dealing with twin problems.

And because of the tax relief, our economy is growing forward. Last year at this time, the projected budget was $527 billion. You might remember that. It turned out that the budget was $412 billion for last year.

Now, the budget is projected to be at $427 billion.

BUSH: We look forward to working to hold the line with the United States Congress on spending. And as I say, I'll promote a package that will show the budget being cut in half over the next five years.

QUESTION: Mr. President, I want to try another way to ask you about Iraq.

When you made the decision to go to war in Iraq, you clearly had majority support in the country. A string of recent polls have shown a clear majority of the American people now believe it was a mistake to go to war in Iraq.

You've asked for $80 billion in more money on top of the billions already spent. The Army says it will probably have 100,000 or more troops in Iraq for at least another year.

What would you say to the American people, including a significant number who supported you at the beginning of the war, who now say, this is not what we were led to believe would happen.

BUSH: A couple of things. I'd say the world is better off without Saddam Hussein in power. A world with Saddam Hussein in power would've been a more dangerous world today.

Secondly, that we're making progress in helping Iraq develop a democracy. And in the long term, our children and grandchildren will benefit from a free Iraq.

In terms of troop levels, obviously we're going to have to the troop levels necessary to complete the mission.

BUSH: And that mission is to enable Iraq to defend herself from terrorists, homegrown or terrorists that come in from outside of the country. And so our mission is focused on not only an increase in the number of Iraqis in uniform, whether it be army or national guard or border patrol or police, but to make sure that the quality of their ability to fight is enhanced.

And so, over the next year, we'll be advancing our plan to make sure the Iraqis are better prepared to defend themselves and to fight.

There have been some really fine units that have been stood up so far, and, obviously, we want to make sure there are more units that are capable of fighting.

BUSH: Listen, this problem will eventually be solved when the Iraqis take the initiative and the Iraqi people see Iraqi soldiers willing to defend them.

And the American people, when they see the Iraqis step up and begin to fight, will be seeing progress being made toward an objective which will make this world a better place.

I don't want to rehash something that I'm sure you got tired of hearing me talk about on the campaign trail. But it is -- the decisions we make today can affect how people live 30, 40 or 50 years from now.

And I bring up, once again, my example about working with Prime Minister Koizumi of Japan. And it wasn't all that long ago that Japan was a bitter enemy. And today, because Japan is a democracy and a free country, the Japanese are strong allies with the United States of America, and we're better off for it.

BUSH: And, listen, the story today is going to be very discouraging to the American people. I understand that. We value life and we weep and mourn when soldiers lose their life.

But it is the long-term objective that is vital, and that is to spread freedom. Otherwise, the Middle East will continue to be a cauldron of resentment and hate, a recruiting ground for those who have this vision of the world that is the exact opposite of ours.

QUESTION: A question on Social Security, if we may, sir.

There has been, as you work forward to making your ultimate proposal, growing concern among Republicans on Capitol Hill. We had Chairman Thomas last week with some concern about the process and Senator Olympia Snowe on the other side suggesting that she's concerned about a guaranteed benefit.

QUESTION: Are you prepared today to say that those who opt into a potential private account, personal account, could in fact have a guaranteed benefit as well?

And what do you say to Republicans who are beginning to worry?

BUSH: I am looking forward to working with both Republicans and Democrats to advance a plan that will permanently solve Social Security. There is -- I met yesterday with members of the United States Senate, I'm meeting today with members of the House of Representatives to discuss the need to work together to get a solution that will fix the problem.

And here's the problem: As dictated by just math, there is the -- the system will be in the red in 13 years. And in 2042, the system will be broke. That's because people are living longer and the number of people paying into the Social Security trust is dwindling.

BUSH: And so, therefore, if you have a child -- how old is your child?

QUESTION: Fourteen years old.

BUSH: Yes, 14. Well, if she were...

QUESTION: He, sir.

BUSH: He, excuse me. Should've done the background check.

(LAUGHTER)

When she gets ready to -- when she's 50, the system will be broke, if my math is correct.

In other words, if you have a child who's 25 years old, when that person gets, you know, gets near retirement the system will be bankrupt.

And therefore, it seems like to me -- and if we wait, the longer we wait, the more expensive the solution. So therefore, now's the time to act.

And Social Security has been an issue that has made people nervous. I understand that. I mean, you know, people felt like it was the third rail of American politics. That means if you touch it, you will have -- it'd be political death.

BUSH: I have said to the American people that our job is to confront issues and not pass them on.

And we have a serious issue with Social Security. The math shows that we have an issue. And now is the time to come together to solve it.

And so, what you're hearing a little bit is whether or not it is worth the political price. I think it is.

And I'm looking forward to leading the Congress, and I'm looking forward to taking the case to the American people. I will begin -- begin -- I will continue that process with the State of the Union address.

And then I look forward to taking off shortly thereafter and traveling around the country discussing this issue, similar to what President Clinton did. President Clinton highlighted the issue, an issue that needed to be addressed and an issue that needed to be solved. He fully recognized, like I recognize, that it's going to require cooperation in the House and the Senate.

And we, in anticipation of this moment, obviously -- you might remember we brought together a distinguished group of our citizens to analyze the issue. And they came forth with some very interesting ideas.

BUSH: As well, it is very important for us to reassure the seniors that nothing changes.

And I fully understand the power of those who want to derail a Social Security agenda by, you know, scaring people. It's been a tactic for a long period of time by those who believe the status quo is acceptable.

And so, one of the things you'll hear me constantly doing is reminding our senior citizens that nothing will change and that we have a duty to act on behalf of their children and grandchildren.

QUESTION: Mr. President, if I could return for a moment to your inaugural address, Dr. Rice referred in her testimony to six outposts of tyranny, countries where we clearly, I think, have a pretty good idea of your policies.

QUESTION: What we're confused by right now I think, or at least what I'm confused by, is how you deal with those countries like Russia, China, Saudi Arabia, with whom we have enormous broad interests.

Should the leaders of those countries now be on notice that the primary measure of their relationship with the United States should be their progress toward liberty? Or can they rest assured that in fact you've got this broad agenda with them and you're willing to measure liberty up against what China does for you on North Korea, what Russia for you in other areas?

BUSH: I don't think foreign policy is an either/or proposition. I think it is possible when you're a nation like the United States to be able to achieve both objectives, one objective the practical objective of dealing, for example, as you mentioned, with North Korea.

BUSH: But in my meetings with Chinese leadership in the past, in my meetings with Chinese leadership in the future, I will constantly remind them of the benefits of a society that honors their people and respects human rights and human dignity.

For example, in meetings with the Chinese in the past I have brought up the Dalai Lama, I have brought up concerns of the Catholic Church. I have discussed my belief that a society that welcomes religious freedom is a wholesome -- religious freedom is a part of a wholesome society and an important part of a society.

Vladimir Putin -- I've discussed with Vladimir Putin some of his decisions, as you might remember, in our meeting in Chile. I will continue to do so. I will remind him that if he intends to continue to look West, we in the West believe in Western values.

You know, democracy is a progress -- you'll see progress toward a goal.

BUSH: There won't be instant democracy.

And I remind people that our own country is a work in progress. You know, we declared all people equal and yet all people weren't treated equally for a century. We said everybody counts, but everybody didn't count.

And so I fully understand developing a democratic society and adhering to the traditions and customs of other nations will be a work in process. That's why I said we're talking about the work of generations.

And so in my talks, in my discussions with world leaders to solve the problem of the day, I will constantly remind them about our strong belief that democracy is the way forward.

QUESTION: Mr. President, Dr. Rice again, quoting the future secretary of state, wrote in Foreign Affairs Magazine in 2000, outlining what a potential Bush administration foreign policy would be, talked about things like security interests, free trade pacts, confronting rogue nations, dealing with great powers like China and Russia.

But promotion of democracy and liberty around the world was not a signature element of that description. I'm wondering what's changed since 2000 that has made this such an important element of your foreign policy.

BUSH: I'm the president. I set the course of this administration.

BUSH: I believe freedom is necessary to promote peace.

And I haven't seen the article you're referring to. And I can assure you that Condi Rice agrees with me that it's necessary to promote democracy.

I haven't seen the article. I didn't read the article. Obviously it wasn't part of her job interview.

(LAUGHTER)

Condi is a firm believer in democracy.

QUESTION: Mr. President, Chairman Thomas and some others on the Hill have suggested taking up tax reform at the same time that you deal with Social Security reform, and to consider alternatives such as a value-added tax to the current payroll tax to finance your Social Security.

Are you willing to consider combining those two big projects? Or do you prefer to keep them on separate tracks?

BUSH: I look forward to working with the Congress to move the process forward. I appreciate people bringing forth ideas. I think it is a constructive part of the process.

I'll have my own -- I'll be a little more specific as time goes on, and perhaps at the State of the Union, talking about how I think we can have a real long-term solution.

BUSH: But I think it's constructive that Chairman Thomas, who will be charged with having a bill come out of the Ways and Means, is thinking creatively, is willing to figure out ways to bring people along.

I am -- and you'll find, as this process unfolds, that there will be a lot of different suggestions, some of them valid, some of them not valid. But the idea that people are bringing forth ideas is a really good sign.

The threshold question is, will Congress -- you know, is Congress willing to say we have a problem? We do have a problem. The math shows we have a problem. And now is the time to act on that problem.

And once people realize there's a problem, then I believe there's an obligation for all sides to bring forth ideas.

BUSH: And that's what you're seeing with Chairman Thomas, and I appreciate that. I'm looking forward to my visit with him this afternoon.

QUESTION: Mr. President, I want to ask about the Gonzales nomination, and specifically about an issue that came up during it, your views on torture.

You said repeatedly that you do not sanction it, you would never approve it.

But there are some written responses that Judge Gonzales gave to his Senate testimony that has troubled some people, specifically his allusion to the fact that cruel, inhumane and degrading treatment of some prisoners is not specifically forbidden, so long as it's conducted by the CIA and conducted overseas.

Is that a loophole that you approved?

BUSH: Al Gonzales reflects our policy, and that is: We don't sanction torture.

He will be a great attorney general. And I call upon the Senate to confirm him.

QUESTION: Mr. President, at the beginning of your remarks today, you referred to two criteria that you're looking for on a Social Security fix: namely, permanent solvency and personal accounts.

QUESTION: Does that mean you would be willing to consider some changes that might broaden the base of revenues for the system as a way of addressing solvency?

BUSH: I look forward to a fruitful discussion of all ideas with the exception of raising the payroll tax.

QUESTION: Sir, can you update us please on your search for a director of national intelligence? Are you having trouble finding the right person? And do you worry at all that the delay might suggest to some people that it's not a high priority for you?

BUSH: When the bill looked like it wasn't going to pass, we weighed in to get it passed and we will work with members of both parties to get a bill out of the Congress.

BUSH: It's clearly a high priority.

It is a priority for us to make sure that I get the very best intelligence in order to make wise decisions for the American people.

And a search goes on to find the right person to handle this very sensitive position. We're dealing with a brand new agency that is going to require somebody with extraordinary experience. And we're looking. And no one should read anything other than we want to make sure we make the right choice.

QUESTION: Back on Social Security, any transition to personal accounts is estimated to cost between $1 trillion to $2 trillion over 10 years. Without talking about specific proposals, do you plan to borrow that money or will you, when your plan comes up...

BUSH: You're asking me to talk about specific proposals.

BUSH: And I'm looking over the -- I fully understand some people are concerned about whether or not this is affordable. And at the appropriate time, we'll address that aspect of reform.

But personal accounts are very important in order to make sure that young workers have got a shot at coming close to that which the government promises.

They are also important because a personal account, obviously under strict guidelines of investment, would yield a better rate of return over -- than the money -- the person's money is earning in the Social Security trust.

And personal accounts will enable a worker to be able to pass on his or her ownings to whoever he or she chooses, which is an important part of promoting an ownership society. We want people to own and manage their own assets.

BUSH: After all, it is their own money.

And so it's a very important part, in my judgment, of reforming the system permanently.

But there -- you know, I fully understand that accounts is not the only thing that will be necessary to make sure the system is permanently secure.

Ken, well, welcome. Let me ask you, are you here temporarily, permanently, and who do you represent?

QUESTION: That would be up to my wife, sir, as you well know.

(LAUGHTER)

BUSH: Yes, thank you.

QUESTION: Mr. President, on Social Security, you say the math clearly shows -- as you know, most of us became reporters because of our deep affection for math.

But if the math clearly shows it, why are you having so much trouble on the Hill getting some to share your urgency? Do you think they're looking at the numbers differently, honestly, or are they running from the third rail?

BUSH: Glad to have you here.

(LAUGHTER)

BUSH: I am going to continue to speak directly to the American people about this issue and remind them about the math and remind them that, if you're a senior, nothing changes and speak to the younger folks coming up about the forecasts.

I mean, if you're a 20-year-old person and you look at the math, you realize that you will inherit a bankrupt system, which means either there will be significant benefit cuts or significant payroll tax increases in order to fund that which the government has laid out for you as a part of your retirement.

And the Congress tends to listen to the people. And so, I will continue to speak to the people and, at the same time, reach out to members of both parties.

BUSH: We have been through these kinds of questions before. In my early press conferences I can remember -- I can't remember exactly the questions, but I do remember the tone, about people saying, "How can you possibly get tax cuts through the Congress when so and so said that they shouldn't be done, or such and such said this, or this report said that, or the American people didn't want this?"

And so I am heartened by past experiences to believe that it is possible to do big things in Washington, D.C. And I look forward to working with members of the Congress to achieve big, notable reform.

QUESTION: I seem to remember a time in Texas on another problem, taxes, where you tried to get out in front and tell people it's not a crisis now, it's going to be a crisis down the line. You went down in flames on that one.

BUSH: Let me, if I might...

(LAUGHTER)

BUSH: I don't think of billion dollar tax relief that permanently reduced property taxes on senior citizens with flames, but since you weren't a senior citizen perhaps that's your definition of flames.

QUESTION: What is there about...

BUSH: Because you're not a senior citizen yet.

QUESTION: What is it about government that makes it hard...

BUSH: Acting like one however.

Go ahead.

(LAUGHTER)

QUESTION: ... for government to get...

BUSH: Faulty memory.

QUESTION: ... to address things...

(CROSSTALK)

BUSH: Do we have a crisis in Texas now of school property taxes?

QUESTION: Yes, we do.

BUSH: Thank you.

QUESTION: First of all, I had two questions. One on Iraq.

You say about the troop withdrawal...

BUSH: No, no, I said what?

QUESTION: No, I'm going to your question -- the answer...

BUSH: I thought you said -- you said on troop withdrawal.

QUESTION: Yes, I'm talking about troop withdrawal. Don't mess me up, now.

(LAUGHTER)

You said, in a response just now, that it depends on the initiative of the Iraqis.

Are you giving the Iraqis a timetable for what you're going to do with troop withdrawal and when?

BUSH: We will complete the mission as quickly as possible. And that mission of a secure and stable Iraq will be achieved when the Iraqis are fighting the former regime elements and people like Zarqawi.

BUSH: Therefore, the -- it is important that we continue to press forward with proper training.

Now, training means not just signing people up. Training means equipping and preparing them for tough fights, as well as developing a chain of command. A good military requires a chain of command from top to bottom, so that orders and plans and strategies can be effected efficiently.

And we have work to do there, and we will do the work.

The second question?

QUESTION: The second question on race. You brought it up in the inaugural address, and yesterday and today you will have black leaders here at the White House discussing issues of race.

Yesterday, you didn't discuss civil rights, but where are you in the second term as it relates to race in America?

BUSH: Civil rights is a good education. Civil rights is opportunity. Civil rights is homeownership. Civil rights is owning your own business. Civil rights is making sure all aspects of our society are open for everybody.

BUSH: And we discussed that yesterday.

And I believe that what I said was important, that we've got to, you know, shed ourselves of bigotry if we expect to lead by example.

And I'll do the very best I can as the president to make sure the promise -- and I believe in the promise of America -- is available for everybody.

QUESTION: Mr. President, do you think it's a proper use of government funds to pay commentators to promote your policies?

BUSH: No.

QUESTION: Are you going to order that...

BUSH: Therefore I will not pay you to.

(LAUGHTER)

QUESTION: Fair enough.

Are you ordering that there be an end...

BUSH: I expect my -- yes, I am. I expect my Cabinet secretaries to make sure that that practice doesn't go forward. There needs to be independence.

And Mr. Armstrong Williams admitted he made a mistake. BUSH: And we didn't know about this in the White House. And, you know, there needs to be a nice, independent relationship between the White House and the press and the administration and the press. And so, no, we shouldn't be going forward.

QUESTION: Mr. Williams made a mistake.

BUSH: Who?

QUESTION: Mr. Williams made a mistake. Did the Department of Education make a mistake?

BUSH: Yes, they did.

QUESTION: And what will happen to the people that made this decision?

BUSH: And we've got new leadership going to the Department of Education.

But all our Cabinet secretaries must realize that we will not be paying, you know, commentators to advance our agenda. Our agenda ought to be able to stand on its own two feet.

And I'm confident you will be, over the course of the next four years, willing to give our different policies an objective look, won't you?

BUSH: Yes. I can see that.

QUESTION: Senate Democratic leaders have painted a very bleak picture of the U.S. economy. Harry Reid was talking about soup lines and Hillary Clinton was talking about the economy being on the verge of collapse. Yet, in the same breath, they say that Social Security is rock solid and there's no crisis there.

You've said you're going to reach out to these people. How are you going to work with people who seem to have divorced themselves from reality?

BUSH: Continue to speak to the American people. Right after my State of the Union, I think I'm going to four or five states to continue to address this issue.

And, you know, I can remember President Clinton doing the same thing on Social Security. I thought he was very effective in teeing up the issue, of making the case. And I will do the same thing.

BUSH: And there's a -- in terms of whether the economy is growing or not, there's -- you know, jobs are increasing, forecasts look strong.

Obviously there's some things we need to do to make sure that America is a good place to continue to risk capital and invest.

That's why I'm urging the Congress to pass legal reform. You might remember one of the first issues that I addressed after election was legal reform, asbestos reform, class action reform, medical liability reform.

I believe if there is a -- that we've got a chance to get some good, meaningful legislation out of the Congress early, which will send a good signal that we will address those issues that make -- that stand in the way for further economic expansion.

BUSH: We need an energy bill. And I look forward to working with members of both parties to get a good energy bill out.

Obviously, people in the capital markets are going to be watching the issue of twin deficits -- on the one hand, the spending deficit, the fiscal deficit. We will address that in our budget that we're getting ready to submit to Congress.

Obviously, we're going to have to work closely together to send the signal that we're willing to tackle some tough issues.

The budget I'll be submitting is one that says we'll spend money on projects that work but we must make sure we're not wasting the taxpayers' money.

BUSH: In terms of the trade deficit, it is important for us to make sure that in countries that are -- that countries treat their currencies in market fashion -- I've been working with China, in specific, on that issue; secondly, that people knock down their barriers to our goods and services; thirdly, that we continue to grow our economy at home by making -- by some of the reforms I've just discussed.

But I think most people are optimistic about the economy next year. It's very important that we continue to put pro-growth policies in place.

QUESTION: Mr. President, Senator Ted Kennedy recently repeated his characterization of Iraq as a, quote, "quagmire," and has called it your Vietnam.

And the questioning of Alberto Gonzales and Condi Rice in the Senate has been largely used by Democrats to criticize your entire Iraq program, especially what you're trying to do postwar.

I wonder if you have any response to those criticisms. And what kind of effect do you think these statements have on the morale of our troops and of the confidence of the Iraqi people that what you're trying to do over there is going to succeed?

BUSH: I think the Iraqi people are wondering whether or not this nation has the will necessary to stand with them as a democracy evolves.

The enemy would like nothing more than the United States to precipitously pull out and withdraw before the Iraqis are prepared to defend themselves. Their objective is to stop the advance of democracy. Freedom scares them. Zarqawi said something interesting the other day: that, you know, he was talking democracy and how terrible democracy is.

We believe that people ought to be allowed to express themselves. And we believe that people ought to decide the fates of their government.

And so the notion that somehow we're not making progress, I just don't subscribe to.

BUSH: I mean, we're having elections and I think people need to put this moment in history in proper context.

That context, of course, starts with whether or not the world will be better off with Saddam Hussein in power and whether or not America'd be more secure.

After all, I've always felt the Iraqi theater's a part of the war on terror. And I am encouraged and I am heartened by the fact the Iraqi citizens are showing incredible bravery.

They're losing a lot of people. Obviously these targeted assassinations of innocent civilians is having an effect on Iraqi families. But they want to vote. They want to participate in democracy. They want to be able to express themselves and to me that is encouraging.

There's a notion in some parts of that world that, you know, certain people can't self-govern; you know, certain religions don't have the capacity of self-government.

BUSH: And that condemns people to tyranny. And I refuse to accept that point of view.

I am optimistic about the advance of freedom and so should the American people.

After all, look what's happened in a brief period of time: Afghanistan, the Palestinian elections, which I think are incredibly hopeful elections, as well as the Ukraine and now Iraq.

We are witnessing amazing history. And the fundamental question is: Can we advance that history?

And that's what my inauguration speech said. It said yes we can.

I firmly planted the flag of liberty for all to see that the United States of America hears their concerns and believes in their aspirations. And I am excited by the challenge and am honored to be able to lead our nation in the quest of this noble goal, which is freeing people in the name of peace.

QUESTION: Mr. President, the Senate Republicans recently listed their priorities, and immigration reform wasn't on it. Do you think this means it's dead for this year?

BUSH: No, I don't.

QUESTION: And why are you having so much trouble with your own party...

BUSH: No, I appreciate that question. It'll be one of my priorities. I believe it's necessary to reform the immigration system.

I'm against amnesty. I've made that very clear.

On the other hand, I do want to recognize a system where a willing worker and a willing employer are willing to come together in a way that enables people to find work without jeopardizing a job that an American would otherwise want to do.

BUSH: I also happen to believe immigration reform is necessary to help make it easier to protect our borders.

The system right now spawns coyotes and smugglers and, you know, people willing to break the law to get people in our country. There is a vast network of, kind of, shadowy traffickers.

And I believe by making -- by advancing a program that enables people to come into our country in a legal way to work for a period of time for jobs that Americans won't do will help make it easier for us to secure our borders.

And so...

QUESTION: Why the resistance in your party so much to this?

BUSH: Well, you know, I think -- I'm looking forward to discussing it with members of both parties.

BUSH: I believe it's a very important issue that we need to address. I've had a lot of experience with dealing with borders as the governor of Texas. I know there's a compassionate, humane way to deal with this issue.

I want to remind people that family values do not stop at the Rio Grande river. People are coming to our country to do jobs that Americans won't do, to be able to feed their families. And I think there's a humane way to recognize that, at the same time protect our borders, and at the same way to make sure that we don't disadvantage those who have stood in line for years to become a legal citizen.

And I'm looking forward to working with people of both parties on the issue.

QUESTION: Mr. President, we saw the Democrats yesterday devote nine hours to Ms. Rice. We may see something similar with regard to Judge Gonzales. There's just simply a lot of anger on the Hill by Democrats at you personally and at your administration.

And isn't this going to dog your efforts at whatever you do down the line, from the Supreme Court to immigration to whatever? BUSH: You know, we're all here to serve the people.

And I'm, as I say, I'm going to go out and explain why I think it's important for us to address big issues, like Social Security reform, and take my case to the people and let them here the rationale about why even address big issues, much less the reason why I think, for example, in Social Security, there is an issue.

As I just laid out the math, it is clear that now is the time to act.

And I don't know about hostility, you know, and all that business. I guess that's your job to gauge that. When I've talked with people, I feel like people are looking forward to working with us.

QUESTION: Well, you had a Democratic senator basically call your secretary of state nominee a liar. I mean, that's some pretty harsh language...

BUSH: Well, there are 99 senators other than that person. And I'm looking forward to working with as many members as we can.

Condi Rice is a fine, fine public servant, greatly admired here in America and greatly admired around the world. And she will make a great secretary of state. And I'm looking forward to working with her.

Listen, thank you all every much for your time. I appreciate this and looking forward to working with you all as we have a productive 2005.

Thank you.

HEMMER: A wide-ranging briefing there in the briefing room at the White House. The president exiting after 48 minutes on the clock. A wide range of topics throughout the day -- Social Security, saying he will take that issue directly to the American people, urging the Senate to confirm Condoleezza Rice. That may happen within the hour, in fact, up on Capitol Hill. But, topic A, clearly is the election on four days on Sunday in Iraq. The president early on saying and admitting that some are feeling intimidated in Iraq, but he's urging the Iraqis to vote, and "defy terrorists," in his words.

Our senior White House correspondent with us as well.

John, good morning there. What more did you hear for the past 48 minutes.

KING: I think your point certainly about the president's view of Iraqi elections. The president very optimistic, defiant, if you will, to those who say the elections are a failure even before they take place. Mr. Bush saying step back and have a more historical context, that yes, these elections may not be perfect, yes, there is the insurgency and violence, but he calls it a critical first step. He's trying to reframe the debate, if you will, in this country, heading into those elections. And the president, I thought, quite defiant in an optimistic way, about trying to reframe the political debate about Iraq here at home, while acknowledging that his public standing in that debate and support for the war has changed significantly.

Another couple of quick key points, one of the key debates about Social Security is whether to call it a crisis or not, and there's been almost a sideshow of refusal to get to the debate about the painful specifics, while people debate whether or not this is indeed a crisis. The president didn't use that word today, as he has in the past. He repeatedly said "problem," not crisis. I think that was no accident at all. The president trying to reframe that debate as well.

And he also side stepped two questions that are dogging his nominees on Capitol Hill. Condoleezza Rice accused essentially of lying about Iraq, Alberto Gonzalez accused of being a part of torturing prisoners in the war on terrorism. The president sidestepping any specific questions about those two issues, instead just praising his nominees. The president here for, as you noted, Bill, 48 minutes. He understands many challenges at home and abroad, and at least early in this new term, the president trying to take the lead in communicating those challenges.

HEMMER: John, if I could, hang me with a second here, toward the end, he referred to his inauguration speech about freedom and democracy around the world, and he said -- and quoting now -- that he firmly planted the flag of liberty. Have you heard him speak like that before?

KING: No, and that was a quite colorful moment in terms of the president's body language. He also said, significantly, that it was -- quote -- "the work of generations." The president right after that speech, many saying that, how would he deal with Russia in the first meeting? How would he deal with China in the first meeting? Would he lean on the Saudis? Would he lean on the Saudis? Would he lean on Pakistan and move quickly toward democracy? The president also trying to recalibrate a bit there, saying yes, this will be very critical in every relationship, not just with Iran and Syria, but with Russia and China. But not necessarily the lead issue in every meeting. If he needs the Chinese help in getting North Korea back to the table for nuclear weapons discussion, that will be important. He will continue to use democracy.

But the president, I think, trying to say don't judge him by this speech, don't go looking five minutes after his next meeting with the president of Russia or the president of China to see if he succeeded. Call it the work of generations. The president very much saying this is critical to him, but again, a long-term process and project.

HEMMER: John, thanks for that. Also in Iraq, saying and admitting again today it a long process, and that process continues this weekend.

John, thanks there. Here is Soledad with more.

O'BRIEN: All right, and our CNN senior political analyst Bill Schneider is standing by for us this morning as well. Bill, not great timing for the president's remarks of course in light of what our top story has been all morning, which is 31 U.S. Marines reported dead in this chopper going down.

Let's talk a little bit about what the president had to say outside of expressing his condolences and saying it's a sad moment any time someone is lost. What else did you hear on Iraq?

BILL SCHNEIDER, CNN SR. POL. ANALYST: Well, he said he understands, when he was asked about it, he said he understands that a lot of people feel discouraged. Our own John King pointed out to him the polls showing that a majority of Americans in many different polls are saying that it may have been a mistake to go into Iraq.

But the president urged the American people to look at the long term, and he insisted we're making progress, and these elections are a sign of progress. You're already getting pre-spin on these elections, with the administration saying the very act of voting is a step forward and a significant advance to democracy, while a lot of critics are saying that the elections really don't mean very much and won't solve anything. The president saying you've got to get beyond that and look at the big picture and not be discourage. He essentially is taking his case directly to the people.

O'BRIEN: I thought it was interesting in that same vein that the president mentioned and referenced President Clinton twice when he was talking about taking the message to the people about Social Security, and that he planned -- almost sounded like he was going to bypass everybody and just go right to the people with his message about how Social Security is, in his mind, a good thing. I think he said Social Security, is it worst the political price? I think it is. What else did you hear on that debate?

SCHNEIDER: Well, this is what presidents often do when they have a problem dealing with Congress, dealing with the press. They say, I'm going to go directly to the American people. You can go all the way back to Woodrow Wilson, who tried to do that unsuccessfully in the fight to get the United States after World War I to join the League of Nations. He went all over the country. It didn't quite work. Clinton tried to do that a bit with health care, and as the president pointed out, with Social Security. Arnold Schwarzenegger said if the legislature of California controlled by Democrats does not give him what he wants, he's going to put measures directly on the ballot and campaign for them. This is what presidents and governors often do, they say -- in fact, they threaten to go directly to the people where this just re-elected president claims he has a far higher standing than he does. even with a Congress controlled by his own party.

O'BRIEN: Bill Schneider for us with some analysis this morning. Bill, Thanks a lot.

SCHNEIDER: Sure.

O'BRIEN: Back to Bill.

HEMMER: Democratic view now. Debbie Stabenow is a U.S. senator from the state of Michigan, also a Democrat.

Good morning, Senator. Thanks for your time...

SEN. DEBBIE STABENOW (D), MICHIGAN: Good morning.

HEMMER: ... coming out of the president's press conference there.

This is what he said about Social Security. He said if you're a senior, nothing changes for this program, but if you're 20 years old, you're looking at a bankrupt system. Is he wrong?

STABENOW: Well, that is an exaggeration. The fact is, first of all, as Democrats were very proud of having led the way to create Social Security, and we are going to make sure that it stays secure. The president's plan actually undermines the security. Privatization at $2 trillion to the national debt and does not do anything to make Social Security secure.

But you know, I also think it's important to say that Social Security can pay 100 percent of the benefits that we have paid into for almost the next 50 years. The crisis that we are focused on are the jobs that are leaving our country today, the people in Michigan that don't have a job, the businesses that can't afford health care, the seniors that can't afford to buy medicine today, and so our agenda that we announced this week is a very bold agenda on security, responsibility, putting troops first, but also focusing on economic security and how we make sure people right now have a job, are able to pay for their health care, send the kids to college.

HEMMER: Senator, back to Social Security -- do you admit the program is in trouble?

STABENOW: Down the road, when we get past 2000, somewhere between 42 and 52, it goes from being able to pay 100 percent of the benefits to somewhere between 70 percent and 80 percent. There's a gap, no question.

HEMMER: So if that's the case, and you're looking down the road, and I pardon for the interruption, but we're short on time here, why not make the change now that's necessary and pick up the ideas gained that the president talked about today?

STABENOW: First of all, we support small changes that will have big results 50 years down the road. The president wants to unravel Social Security, which is America's insurance policy, by privatizing it. You do nothing to add a day to the length of Social Security trust fund, and, in fact, you jeopardize it by adding $2 trillion to the debt.

Potentially we've heard from the White House that they are possibly going to be proposing cutting benefits in order to pay for that. We don't know. I'm looking forward to the president's hopefully more specific proposals, because we are not sure. Everything we have seen adds to the debt, cuts benefits, makes Social Security less secure. HEMMER: We are told we will get more details next Wednesday night in Washington at the State of the Union Address then.

Thank you, senator, Debbie Stabenow, Democrat out of Michigan. Thanks for your time -- Soledad.

O'BRIEN: A short break ahead. Now when we come back, we're going to update you on the very latest of this train crash in Glendale, California. Stay with us. We're back in just a moment.

(COMMERCIAL BREAK)

O'BRIEN: There's lots to update you on this morning. In fact, we've got new death toll numbers in this train crash in Southern California in Glendale, right at the height of the commute. We're going to bring you up to speed on that.

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Aired January 26, 2005 - 09:59   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: On the calender, we're four days away from an election in Iraq. We're about a week away from State of the Union Address in Washington, and we're about two minutes away from seeing the president inside of the briefing room. Here is John King there -- John.
JOHN KING, CNN CORRESPONDENT: Bill, I'll sit momentarily as the president comes in.

You mentioned, and Suzanne was just discussing, all of the international challenges for this president, and they are many. He's also of course one day away from a meeting with senior Senate Republicans, senior Republicans in Congress, telling him he has a very tough job ahead, and he better do a better job if he wants to sell his ambitious domestic agenda, including, and beginning, with his plans to revamp Social Security. The president promising those senators yesterday he would try to do that. Perhaps no surprise that he's coming here to the White House briefing room the morning after. Challenges overseas, those deaths today in Iraq, those Marines killed in a helicopter crash, the upcoming elections, challenges here at home as well.

Perhaps a little glasnost from the president. We're seeing and hearing a bit more from him at the beginning of the second term. Obviously fresh from the inaugural, preparing for his State of the Union Address, and just about a minute away from coming here to the briefing room.

HEMMER: All right, John, thanks. Stand by there in the briefing room as we await the president, Soledad. We do anticipate a little more about what's happening in Iraq and the elections anticipated for Sunday. May hear a little bit, too, about Social Security, which is said to be one of the focuses for the State of the Union Address next Wednesday night.

If you're just joining us this is the new we have out of Iraq that broke several hours ago. A helicopter crash in western Iraq killed 31 Marines on board. Cause of that crash is unknown. We are also reporting about the same time four U.S. Marines killed in action in Al Anbar province. That's the same province, an enormous swathe of land west of Baghdad, killed in action in a separate incident. And another U.S. soldier reported dead as well, which brings the total in the past 24 hours to 36 dead, U.S. military personnel in Iraq, which, by our count would mean the most deadly day for the U.S. military since Operation Iraqi Freedom began back in March of 2003. We'll see the president. We should hear more on this and also the elections again Sunday. O'BRIEN: We should explain to folks why they're looking at a podium there. We are waiting. That's the podium where the president where the president is going to be addressing reporters and then taking some questions. Earlier we sort of described it as a little bit unusual.

Here's the president. Let's listen in.

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

With a second term under way and a new Congress at work, we're moving forward on great goals for our country. In my inaugural address, I renewed this nation's commitment to expanding liberty at home and promoting liberty abroad.

Because our own freedom is enhanced by the expansion of freedom in other nations, I set out the long-term goal of ending tyranny in our world. This will require the commitment of generations. But we're seeing much progress in our own time.

In late 2004, the people of Afghanistan defied the threats of terrorists and went to the polls to choose their leaders. The Palestinian people have elected a president who has renounced violence. This week, Ukraine inaugurated a new president, President Yushchenko. And just four days from now, the people of Iraq will vote in free national elections.

Terrorists in that country have declared war against democracy itself and thereby declared war against the Iraqi people themselves. Yet the elections will go forward.

BUSH: Millions of Iraqi voters will show their bravery, their love of country and their desire to live in freedom.

Across the world, freedom has deadly enemies. Yet across the world freedom has great and growing momentum.

And there have been enormous sacrifices made by some of our citizens in the spread of freedom. Families suffer as a result of the loss of a loved one.

Continue to offer condolences and prayers for those who do suffer. We will honor the memories of their loved ones by completing our missions.

Next week, I will report to Congress on the state of the union and describe in more detail a legislative agenda to serve the goals I have outlined.

I'll ask the House and Senate to act soon on the issue of Social Security so that we don't pass a bankrupt system on to our children and our grandchildren.

BUSH: I'm open to good ideas from members of Congress. I'll work with both parties to get results. Any solution must confront the problem fully and directly by making the system permanently solvent and providing the option of personal accounts.

For this new term, I've assembled an exceptional Cabinet and several members are taking office this week. In addition to speedy action on all my nominees, I especially urge the Senate to confirm Condoleezza Rice today and to promptly act and confirm Judge Al Gonzalez.

We have a full agenda. I'm looking forward to the work ahead and now I'm looking forward to answering some of your questions.

QUESTION: Mr. President, the insurgents in Iraq are threatening to kill anyone who comes out to vote on Sunday. Do you think they'll succeed in killing or scaring away enough people so that the elections will be rendered seriously flawed or not credible?

BUSH: We anticipate a lot of Iraqis will vote.

Clearly, there are some who are intimidated. Surveys show that the vast majority of people do want to participate in democracy. And some are felling intimidated.

I urge all people to vote. I urge people to defy these terrorists.

These terrorists do not have the best interests of the Iraqi people in mind. They have no positive agenda. They have no clear view of a better future. They're afraid of a free society.

I am impressed by the bravery of the Iraqi citizens.

I am heartened by the strong words of Prime Minister Allawi. I talked to him yesterday on the phone. He is determined to lead his country forward into the elections.

I appreciate the hard work of the United Nations, which is providing good leadership on the ground. And I anticipate a grand moment in Iraqi history.

BUSH: And if we'd have been having this discussion a couple of years ago and I just stood up in front of you and said the Iraqi people would be voting, you would look at me like some of you still look at me, with a, kind of, blank expression.

(LAUGHTER)

People are voting. And this is a part of a process to write a constitution and elect a permanent assembly. And it's exciting times for the Iraqi people.

QUESTION: What would be a credible turnout number?

BUSH: The fact that they're voting in itself is successful.

Again, this is a long process. It is a process that will begin to write a constitution and then elect a permanent assembly.

BUSH: And this process will take place over this next year.

It is a grand moment for those who believe in freedom.

QUESTION: Your inaugural address has been interpreted as a new aggressive posture against certain countries, in particular, Iran. Should we view it that way?

BUSH: My inaugural address reflected the policies of the past four years that said -- that we're implementing in Afghanistan and Iraq. And it talked about a way forward.

I think America is at its best when it leads toward an ideal. And certainly a world without tyranny is an ideal world.

The spread of freedom is important for future generations of Americans. I firmly believe that free societies are peaceful societies. And I believe every person desires to be free.

And so I look forward to leading the world in that direction for the next four years.

QUESTION: (inaudible) a policy shift?

BUSH: No. As I said, it reflects the policy of the past, but it sets a bold new goal for the future. And I believe this country is best when it heads toward an ideal world, we are at our best.

And in doing so, we're reflecting universal values and universal ideas that honor each man and woman, that recognize human rights and human dignity depends upon human liberty.

And it's -- I'm looking forward to the challenge. And I'm looking forward to reaching out to our friends and allies to convince them the necessity to continue to work together to help liberate people.

QUESTION: Mr. President, let me take you up on that if I may.

Last month in Jordan, a gentleman named Ali Hattar was arrested after delivering a lecture called "Why We Boycott America." He was charged under Section 191 of their penal code for slander of government officials. He stood up for democracy, you might say.

And I wonder if here and now you will specifically condemn this abuse of human rights by a key American ally.

QUESTION: And if you won't, sir, then what, in a practical sense, do your fine words mean?

BUSH: I am unaware of the case. You've asked me to comment on something that I didn't know took place.

I urge my friend, His Majesty, to make sure that democracy continues to advance in Jordan. I noticed today that he put forth a reform that will help more people participate in future governments of Jordan. I appreciate His Majesty's understanding of the need for democracy to advance in the greater Middle East.

We visited with him at the G-8 and he has been a strong advocate of the advance of freedom and democracy.

Let me finish.

Obviously we're discussing a process. As I said in my speech, not every nation is going to immediately adopt America's vision of democracy and I fully understand that.

BUSH: But we expect nations to adopt the values inherent in a democracy, which is human rights and human dignity, that every person matters and every person ought to have a voice. And His Majesty is making progress toward that goal.

I can't speak specifically to the case. You're asking me to speak about a case and I don't know the facts.

QUESTION: Will you then -- does your inaugural address mean that, when it comes to people like Mr. Hattar, you won't compromise because of a U.S. ally, and you will stand...

BUSH: Again, I don't know the facts. You're asking me to comment on something. I don't know the facts.

Perhaps you are accurate in your description of the facts, but I have not seen those facts.

Now, nevertheless, we have spoken out in the past and will continue to speak out for human rights and human dignity, and the right for people to express themselves in the public square.

QUESTION: Mr. President, in the debate over Dr. Rice's confirmation, Democrats came right out and accused you and the administration of lying in the run up to the war in Iraq. Republicans, in some cases, conceive it that mistakes have been made.

Now that the election is over, are you willing to conceive that any mistakes were made? And how do you feel about that?

BUSH: Let me talk about Dr. Rice. You asked about her confirmation.

Dr. Rice is an honorable, fine public servant who needs to be confirmed. She will be a great secretary of state.

And Dr. Rice and I look forward to moving forward. We look forward to working to make sure the Iraqis have got a democracy. We look forward to continue to make sure Afghanistan is as secure as possible from potential Taliban resurgents. We look forward to spreading freedom around the world. And she is going to make a wonderful secretary of state. QUESTION: No reaction to the lying?

No reaction?

(LAUGHTER)

BUSH: Is that your question? The answer's no.

BUSH: Next.

(LAUGHTER)

QUESTION: Sir, I'd like to ask you about the deficit.

But before I do that, there is a developing story this morning, the helicopter crash in Iraq. Can you tell us what you know about that and what may have caused that and your reaction to it?

BUSH: I know that it is being investigated by the Defense Department.

And, obviously, any time we lose life it is a sad moment.

QUESTION: You don't know whether it was weather-related or...

BUSH: Not yet.

I've heard rumors, but -- wait till the facts.

QUESTION: You're preparing to ask Congress for an additional $80 billion in war spending in Afghanistan and in Iraq. The White House is also prepared to predict a budget deficit of $427 billion for this year.

You talk about sacrifice in this country. Do you think that you're really asking Americans to sacrifice financially when you're asking them to fund the war, yet at the same time perhaps pay an exorbitant amount to set up private accounts and Social Security, pay for a prescription drug benefit, as well as other spending plans?

BUSH: So the...

QUESTION: And tax cuts? Make those permanent? It's a lot of money.

BUSH: OK, let me see if I can dissect your question into separate parts.

First, Americans pay a lot of taxes. They pay tax at the federal level. They pay tax at the state level. They pay tax at the local level. Americans do pay taxes.

Secondly, I made the commitment to our troops, we'll fund them. And that's exactly what we're doing. We've got people in harm's way. I look forward to working with Congress to fund what is necessary to help those troops complete their mission. Thirdly, we have presented a plan in the past and will present one here later on this -- in February, that will show -- cut the deficit in half.

BUSH: And it's obviously going to require cooperation with the United States Congress to make some very difficult decisions when it comes to funding the budgets.

Fourthly, we not only were attacked and therefore needed to defend ourselves, we also had a recession. And I felt it was very important to reduce the tax burden on the American people to get out of the recession. In other words, we were dealing with twin problems.

And because of the tax relief, our economy is growing forward. Last year at this time, the projected budget was $527 billion. You might remember that. It turned out that the budget was $412 billion for last year.

Now, the budget is projected to be at $427 billion.

BUSH: We look forward to working to hold the line with the United States Congress on spending. And as I say, I'll promote a package that will show the budget being cut in half over the next five years.

QUESTION: Mr. President, I want to try another way to ask you about Iraq.

When you made the decision to go to war in Iraq, you clearly had majority support in the country. A string of recent polls have shown a clear majority of the American people now believe it was a mistake to go to war in Iraq.

You've asked for $80 billion in more money on top of the billions already spent. The Army says it will probably have 100,000 or more troops in Iraq for at least another year.

What would you say to the American people, including a significant number who supported you at the beginning of the war, who now say, this is not what we were led to believe would happen.

BUSH: A couple of things. I'd say the world is better off without Saddam Hussein in power. A world with Saddam Hussein in power would've been a more dangerous world today.

Secondly, that we're making progress in helping Iraq develop a democracy. And in the long term, our children and grandchildren will benefit from a free Iraq.

In terms of troop levels, obviously we're going to have to the troop levels necessary to complete the mission.

BUSH: And that mission is to enable Iraq to defend herself from terrorists, homegrown or terrorists that come in from outside of the country. And so our mission is focused on not only an increase in the number of Iraqis in uniform, whether it be army or national guard or border patrol or police, but to make sure that the quality of their ability to fight is enhanced.

And so, over the next year, we'll be advancing our plan to make sure the Iraqis are better prepared to defend themselves and to fight.

There have been some really fine units that have been stood up so far, and, obviously, we want to make sure there are more units that are capable of fighting.

BUSH: Listen, this problem will eventually be solved when the Iraqis take the initiative and the Iraqi people see Iraqi soldiers willing to defend them.

And the American people, when they see the Iraqis step up and begin to fight, will be seeing progress being made toward an objective which will make this world a better place.

I don't want to rehash something that I'm sure you got tired of hearing me talk about on the campaign trail. But it is -- the decisions we make today can affect how people live 30, 40 or 50 years from now.

And I bring up, once again, my example about working with Prime Minister Koizumi of Japan. And it wasn't all that long ago that Japan was a bitter enemy. And today, because Japan is a democracy and a free country, the Japanese are strong allies with the United States of America, and we're better off for it.

BUSH: And, listen, the story today is going to be very discouraging to the American people. I understand that. We value life and we weep and mourn when soldiers lose their life.

But it is the long-term objective that is vital, and that is to spread freedom. Otherwise, the Middle East will continue to be a cauldron of resentment and hate, a recruiting ground for those who have this vision of the world that is the exact opposite of ours.

QUESTION: A question on Social Security, if we may, sir.

There has been, as you work forward to making your ultimate proposal, growing concern among Republicans on Capitol Hill. We had Chairman Thomas last week with some concern about the process and Senator Olympia Snowe on the other side suggesting that she's concerned about a guaranteed benefit.

QUESTION: Are you prepared today to say that those who opt into a potential private account, personal account, could in fact have a guaranteed benefit as well?

And what do you say to Republicans who are beginning to worry?

BUSH: I am looking forward to working with both Republicans and Democrats to advance a plan that will permanently solve Social Security. There is -- I met yesterday with members of the United States Senate, I'm meeting today with members of the House of Representatives to discuss the need to work together to get a solution that will fix the problem.

And here's the problem: As dictated by just math, there is the -- the system will be in the red in 13 years. And in 2042, the system will be broke. That's because people are living longer and the number of people paying into the Social Security trust is dwindling.

BUSH: And so, therefore, if you have a child -- how old is your child?

QUESTION: Fourteen years old.

BUSH: Yes, 14. Well, if she were...

QUESTION: He, sir.

BUSH: He, excuse me. Should've done the background check.

(LAUGHTER)

When she gets ready to -- when she's 50, the system will be broke, if my math is correct.

In other words, if you have a child who's 25 years old, when that person gets, you know, gets near retirement the system will be bankrupt.

And therefore, it seems like to me -- and if we wait, the longer we wait, the more expensive the solution. So therefore, now's the time to act.

And Social Security has been an issue that has made people nervous. I understand that. I mean, you know, people felt like it was the third rail of American politics. That means if you touch it, you will have -- it'd be political death.

BUSH: I have said to the American people that our job is to confront issues and not pass them on.

And we have a serious issue with Social Security. The math shows that we have an issue. And now is the time to come together to solve it.

And so, what you're hearing a little bit is whether or not it is worth the political price. I think it is.

And I'm looking forward to leading the Congress, and I'm looking forward to taking the case to the American people. I will begin -- begin -- I will continue that process with the State of the Union address.

And then I look forward to taking off shortly thereafter and traveling around the country discussing this issue, similar to what President Clinton did. President Clinton highlighted the issue, an issue that needed to be addressed and an issue that needed to be solved. He fully recognized, like I recognize, that it's going to require cooperation in the House and the Senate.

And we, in anticipation of this moment, obviously -- you might remember we brought together a distinguished group of our citizens to analyze the issue. And they came forth with some very interesting ideas.

BUSH: As well, it is very important for us to reassure the seniors that nothing changes.

And I fully understand the power of those who want to derail a Social Security agenda by, you know, scaring people. It's been a tactic for a long period of time by those who believe the status quo is acceptable.

And so, one of the things you'll hear me constantly doing is reminding our senior citizens that nothing will change and that we have a duty to act on behalf of their children and grandchildren.

QUESTION: Mr. President, if I could return for a moment to your inaugural address, Dr. Rice referred in her testimony to six outposts of tyranny, countries where we clearly, I think, have a pretty good idea of your policies.

QUESTION: What we're confused by right now I think, or at least what I'm confused by, is how you deal with those countries like Russia, China, Saudi Arabia, with whom we have enormous broad interests.

Should the leaders of those countries now be on notice that the primary measure of their relationship with the United States should be their progress toward liberty? Or can they rest assured that in fact you've got this broad agenda with them and you're willing to measure liberty up against what China does for you on North Korea, what Russia for you in other areas?

BUSH: I don't think foreign policy is an either/or proposition. I think it is possible when you're a nation like the United States to be able to achieve both objectives, one objective the practical objective of dealing, for example, as you mentioned, with North Korea.

BUSH: But in my meetings with Chinese leadership in the past, in my meetings with Chinese leadership in the future, I will constantly remind them of the benefits of a society that honors their people and respects human rights and human dignity.

For example, in meetings with the Chinese in the past I have brought up the Dalai Lama, I have brought up concerns of the Catholic Church. I have discussed my belief that a society that welcomes religious freedom is a wholesome -- religious freedom is a part of a wholesome society and an important part of a society.

Vladimir Putin -- I've discussed with Vladimir Putin some of his decisions, as you might remember, in our meeting in Chile. I will continue to do so. I will remind him that if he intends to continue to look West, we in the West believe in Western values.

You know, democracy is a progress -- you'll see progress toward a goal.

BUSH: There won't be instant democracy.

And I remind people that our own country is a work in progress. You know, we declared all people equal and yet all people weren't treated equally for a century. We said everybody counts, but everybody didn't count.

And so I fully understand developing a democratic society and adhering to the traditions and customs of other nations will be a work in process. That's why I said we're talking about the work of generations.

And so in my talks, in my discussions with world leaders to solve the problem of the day, I will constantly remind them about our strong belief that democracy is the way forward.

QUESTION: Mr. President, Dr. Rice again, quoting the future secretary of state, wrote in Foreign Affairs Magazine in 2000, outlining what a potential Bush administration foreign policy would be, talked about things like security interests, free trade pacts, confronting rogue nations, dealing with great powers like China and Russia.

But promotion of democracy and liberty around the world was not a signature element of that description. I'm wondering what's changed since 2000 that has made this such an important element of your foreign policy.

BUSH: I'm the president. I set the course of this administration.

BUSH: I believe freedom is necessary to promote peace.

And I haven't seen the article you're referring to. And I can assure you that Condi Rice agrees with me that it's necessary to promote democracy.

I haven't seen the article. I didn't read the article. Obviously it wasn't part of her job interview.

(LAUGHTER)

Condi is a firm believer in democracy.

QUESTION: Mr. President, Chairman Thomas and some others on the Hill have suggested taking up tax reform at the same time that you deal with Social Security reform, and to consider alternatives such as a value-added tax to the current payroll tax to finance your Social Security.

Are you willing to consider combining those two big projects? Or do you prefer to keep them on separate tracks?

BUSH: I look forward to working with the Congress to move the process forward. I appreciate people bringing forth ideas. I think it is a constructive part of the process.

I'll have my own -- I'll be a little more specific as time goes on, and perhaps at the State of the Union, talking about how I think we can have a real long-term solution.

BUSH: But I think it's constructive that Chairman Thomas, who will be charged with having a bill come out of the Ways and Means, is thinking creatively, is willing to figure out ways to bring people along.

I am -- and you'll find, as this process unfolds, that there will be a lot of different suggestions, some of them valid, some of them not valid. But the idea that people are bringing forth ideas is a really good sign.

The threshold question is, will Congress -- you know, is Congress willing to say we have a problem? We do have a problem. The math shows we have a problem. And now is the time to act on that problem.

And once people realize there's a problem, then I believe there's an obligation for all sides to bring forth ideas.

BUSH: And that's what you're seeing with Chairman Thomas, and I appreciate that. I'm looking forward to my visit with him this afternoon.

QUESTION: Mr. President, I want to ask about the Gonzales nomination, and specifically about an issue that came up during it, your views on torture.

You said repeatedly that you do not sanction it, you would never approve it.

But there are some written responses that Judge Gonzales gave to his Senate testimony that has troubled some people, specifically his allusion to the fact that cruel, inhumane and degrading treatment of some prisoners is not specifically forbidden, so long as it's conducted by the CIA and conducted overseas.

Is that a loophole that you approved?

BUSH: Al Gonzales reflects our policy, and that is: We don't sanction torture.

He will be a great attorney general. And I call upon the Senate to confirm him.

QUESTION: Mr. President, at the beginning of your remarks today, you referred to two criteria that you're looking for on a Social Security fix: namely, permanent solvency and personal accounts.

QUESTION: Does that mean you would be willing to consider some changes that might broaden the base of revenues for the system as a way of addressing solvency?

BUSH: I look forward to a fruitful discussion of all ideas with the exception of raising the payroll tax.

QUESTION: Sir, can you update us please on your search for a director of national intelligence? Are you having trouble finding the right person? And do you worry at all that the delay might suggest to some people that it's not a high priority for you?

BUSH: When the bill looked like it wasn't going to pass, we weighed in to get it passed and we will work with members of both parties to get a bill out of the Congress.

BUSH: It's clearly a high priority.

It is a priority for us to make sure that I get the very best intelligence in order to make wise decisions for the American people.

And a search goes on to find the right person to handle this very sensitive position. We're dealing with a brand new agency that is going to require somebody with extraordinary experience. And we're looking. And no one should read anything other than we want to make sure we make the right choice.

QUESTION: Back on Social Security, any transition to personal accounts is estimated to cost between $1 trillion to $2 trillion over 10 years. Without talking about specific proposals, do you plan to borrow that money or will you, when your plan comes up...

BUSH: You're asking me to talk about specific proposals.

BUSH: And I'm looking over the -- I fully understand some people are concerned about whether or not this is affordable. And at the appropriate time, we'll address that aspect of reform.

But personal accounts are very important in order to make sure that young workers have got a shot at coming close to that which the government promises.

They are also important because a personal account, obviously under strict guidelines of investment, would yield a better rate of return over -- than the money -- the person's money is earning in the Social Security trust.

And personal accounts will enable a worker to be able to pass on his or her ownings to whoever he or she chooses, which is an important part of promoting an ownership society. We want people to own and manage their own assets.

BUSH: After all, it is their own money.

And so it's a very important part, in my judgment, of reforming the system permanently.

But there -- you know, I fully understand that accounts is not the only thing that will be necessary to make sure the system is permanently secure.

Ken, well, welcome. Let me ask you, are you here temporarily, permanently, and who do you represent?

QUESTION: That would be up to my wife, sir, as you well know.

(LAUGHTER)

BUSH: Yes, thank you.

QUESTION: Mr. President, on Social Security, you say the math clearly shows -- as you know, most of us became reporters because of our deep affection for math.

But if the math clearly shows it, why are you having so much trouble on the Hill getting some to share your urgency? Do you think they're looking at the numbers differently, honestly, or are they running from the third rail?

BUSH: Glad to have you here.

(LAUGHTER)

BUSH: I am going to continue to speak directly to the American people about this issue and remind them about the math and remind them that, if you're a senior, nothing changes and speak to the younger folks coming up about the forecasts.

I mean, if you're a 20-year-old person and you look at the math, you realize that you will inherit a bankrupt system, which means either there will be significant benefit cuts or significant payroll tax increases in order to fund that which the government has laid out for you as a part of your retirement.

And the Congress tends to listen to the people. And so, I will continue to speak to the people and, at the same time, reach out to members of both parties.

BUSH: We have been through these kinds of questions before. In my early press conferences I can remember -- I can't remember exactly the questions, but I do remember the tone, about people saying, "How can you possibly get tax cuts through the Congress when so and so said that they shouldn't be done, or such and such said this, or this report said that, or the American people didn't want this?"

And so I am heartened by past experiences to believe that it is possible to do big things in Washington, D.C. And I look forward to working with members of the Congress to achieve big, notable reform.

QUESTION: I seem to remember a time in Texas on another problem, taxes, where you tried to get out in front and tell people it's not a crisis now, it's going to be a crisis down the line. You went down in flames on that one.

BUSH: Let me, if I might...

(LAUGHTER)

BUSH: I don't think of billion dollar tax relief that permanently reduced property taxes on senior citizens with flames, but since you weren't a senior citizen perhaps that's your definition of flames.

QUESTION: What is there about...

BUSH: Because you're not a senior citizen yet.

QUESTION: What is it about government that makes it hard...

BUSH: Acting like one however.

Go ahead.

(LAUGHTER)

QUESTION: ... for government to get...

BUSH: Faulty memory.

QUESTION: ... to address things...

(CROSSTALK)

BUSH: Do we have a crisis in Texas now of school property taxes?

QUESTION: Yes, we do.

BUSH: Thank you.

QUESTION: First of all, I had two questions. One on Iraq.

You say about the troop withdrawal...

BUSH: No, no, I said what?

QUESTION: No, I'm going to your question -- the answer...

BUSH: I thought you said -- you said on troop withdrawal.

QUESTION: Yes, I'm talking about troop withdrawal. Don't mess me up, now.

(LAUGHTER)

You said, in a response just now, that it depends on the initiative of the Iraqis.

Are you giving the Iraqis a timetable for what you're going to do with troop withdrawal and when?

BUSH: We will complete the mission as quickly as possible. And that mission of a secure and stable Iraq will be achieved when the Iraqis are fighting the former regime elements and people like Zarqawi.

BUSH: Therefore, the -- it is important that we continue to press forward with proper training.

Now, training means not just signing people up. Training means equipping and preparing them for tough fights, as well as developing a chain of command. A good military requires a chain of command from top to bottom, so that orders and plans and strategies can be effected efficiently.

And we have work to do there, and we will do the work.

The second question?

QUESTION: The second question on race. You brought it up in the inaugural address, and yesterday and today you will have black leaders here at the White House discussing issues of race.

Yesterday, you didn't discuss civil rights, but where are you in the second term as it relates to race in America?

BUSH: Civil rights is a good education. Civil rights is opportunity. Civil rights is homeownership. Civil rights is owning your own business. Civil rights is making sure all aspects of our society are open for everybody.

BUSH: And we discussed that yesterday.

And I believe that what I said was important, that we've got to, you know, shed ourselves of bigotry if we expect to lead by example.

And I'll do the very best I can as the president to make sure the promise -- and I believe in the promise of America -- is available for everybody.

QUESTION: Mr. President, do you think it's a proper use of government funds to pay commentators to promote your policies?

BUSH: No.

QUESTION: Are you going to order that...

BUSH: Therefore I will not pay you to.

(LAUGHTER)

QUESTION: Fair enough.

Are you ordering that there be an end...

BUSH: I expect my -- yes, I am. I expect my Cabinet secretaries to make sure that that practice doesn't go forward. There needs to be independence.

And Mr. Armstrong Williams admitted he made a mistake. BUSH: And we didn't know about this in the White House. And, you know, there needs to be a nice, independent relationship between the White House and the press and the administration and the press. And so, no, we shouldn't be going forward.

QUESTION: Mr. Williams made a mistake.

BUSH: Who?

QUESTION: Mr. Williams made a mistake. Did the Department of Education make a mistake?

BUSH: Yes, they did.

QUESTION: And what will happen to the people that made this decision?

BUSH: And we've got new leadership going to the Department of Education.

But all our Cabinet secretaries must realize that we will not be paying, you know, commentators to advance our agenda. Our agenda ought to be able to stand on its own two feet.

And I'm confident you will be, over the course of the next four years, willing to give our different policies an objective look, won't you?

BUSH: Yes. I can see that.

QUESTION: Senate Democratic leaders have painted a very bleak picture of the U.S. economy. Harry Reid was talking about soup lines and Hillary Clinton was talking about the economy being on the verge of collapse. Yet, in the same breath, they say that Social Security is rock solid and there's no crisis there.

You've said you're going to reach out to these people. How are you going to work with people who seem to have divorced themselves from reality?

BUSH: Continue to speak to the American people. Right after my State of the Union, I think I'm going to four or five states to continue to address this issue.

And, you know, I can remember President Clinton doing the same thing on Social Security. I thought he was very effective in teeing up the issue, of making the case. And I will do the same thing.

BUSH: And there's a -- in terms of whether the economy is growing or not, there's -- you know, jobs are increasing, forecasts look strong.

Obviously there's some things we need to do to make sure that America is a good place to continue to risk capital and invest.

That's why I'm urging the Congress to pass legal reform. You might remember one of the first issues that I addressed after election was legal reform, asbestos reform, class action reform, medical liability reform.

I believe if there is a -- that we've got a chance to get some good, meaningful legislation out of the Congress early, which will send a good signal that we will address those issues that make -- that stand in the way for further economic expansion.

BUSH: We need an energy bill. And I look forward to working with members of both parties to get a good energy bill out.

Obviously, people in the capital markets are going to be watching the issue of twin deficits -- on the one hand, the spending deficit, the fiscal deficit. We will address that in our budget that we're getting ready to submit to Congress.

Obviously, we're going to have to work closely together to send the signal that we're willing to tackle some tough issues.

The budget I'll be submitting is one that says we'll spend money on projects that work but we must make sure we're not wasting the taxpayers' money.

BUSH: In terms of the trade deficit, it is important for us to make sure that in countries that are -- that countries treat their currencies in market fashion -- I've been working with China, in specific, on that issue; secondly, that people knock down their barriers to our goods and services; thirdly, that we continue to grow our economy at home by making -- by some of the reforms I've just discussed.

But I think most people are optimistic about the economy next year. It's very important that we continue to put pro-growth policies in place.

QUESTION: Mr. President, Senator Ted Kennedy recently repeated his characterization of Iraq as a, quote, "quagmire," and has called it your Vietnam.

And the questioning of Alberto Gonzales and Condi Rice in the Senate has been largely used by Democrats to criticize your entire Iraq program, especially what you're trying to do postwar.

I wonder if you have any response to those criticisms. And what kind of effect do you think these statements have on the morale of our troops and of the confidence of the Iraqi people that what you're trying to do over there is going to succeed?

BUSH: I think the Iraqi people are wondering whether or not this nation has the will necessary to stand with them as a democracy evolves.

The enemy would like nothing more than the United States to precipitously pull out and withdraw before the Iraqis are prepared to defend themselves. Their objective is to stop the advance of democracy. Freedom scares them. Zarqawi said something interesting the other day: that, you know, he was talking democracy and how terrible democracy is.

We believe that people ought to be allowed to express themselves. And we believe that people ought to decide the fates of their government.

And so the notion that somehow we're not making progress, I just don't subscribe to.

BUSH: I mean, we're having elections and I think people need to put this moment in history in proper context.

That context, of course, starts with whether or not the world will be better off with Saddam Hussein in power and whether or not America'd be more secure.

After all, I've always felt the Iraqi theater's a part of the war on terror. And I am encouraged and I am heartened by the fact the Iraqi citizens are showing incredible bravery.

They're losing a lot of people. Obviously these targeted assassinations of innocent civilians is having an effect on Iraqi families. But they want to vote. They want to participate in democracy. They want to be able to express themselves and to me that is encouraging.

There's a notion in some parts of that world that, you know, certain people can't self-govern; you know, certain religions don't have the capacity of self-government.

BUSH: And that condemns people to tyranny. And I refuse to accept that point of view.

I am optimistic about the advance of freedom and so should the American people.

After all, look what's happened in a brief period of time: Afghanistan, the Palestinian elections, which I think are incredibly hopeful elections, as well as the Ukraine and now Iraq.

We are witnessing amazing history. And the fundamental question is: Can we advance that history?

And that's what my inauguration speech said. It said yes we can.

I firmly planted the flag of liberty for all to see that the United States of America hears their concerns and believes in their aspirations. And I am excited by the challenge and am honored to be able to lead our nation in the quest of this noble goal, which is freeing people in the name of peace.

QUESTION: Mr. President, the Senate Republicans recently listed their priorities, and immigration reform wasn't on it. Do you think this means it's dead for this year?

BUSH: No, I don't.

QUESTION: And why are you having so much trouble with your own party...

BUSH: No, I appreciate that question. It'll be one of my priorities. I believe it's necessary to reform the immigration system.

I'm against amnesty. I've made that very clear.

On the other hand, I do want to recognize a system where a willing worker and a willing employer are willing to come together in a way that enables people to find work without jeopardizing a job that an American would otherwise want to do.

BUSH: I also happen to believe immigration reform is necessary to help make it easier to protect our borders.

The system right now spawns coyotes and smugglers and, you know, people willing to break the law to get people in our country. There is a vast network of, kind of, shadowy traffickers.

And I believe by making -- by advancing a program that enables people to come into our country in a legal way to work for a period of time for jobs that Americans won't do will help make it easier for us to secure our borders.

And so...

QUESTION: Why the resistance in your party so much to this?

BUSH: Well, you know, I think -- I'm looking forward to discussing it with members of both parties.

BUSH: I believe it's a very important issue that we need to address. I've had a lot of experience with dealing with borders as the governor of Texas. I know there's a compassionate, humane way to deal with this issue.

I want to remind people that family values do not stop at the Rio Grande river. People are coming to our country to do jobs that Americans won't do, to be able to feed their families. And I think there's a humane way to recognize that, at the same time protect our borders, and at the same way to make sure that we don't disadvantage those who have stood in line for years to become a legal citizen.

And I'm looking forward to working with people of both parties on the issue.

QUESTION: Mr. President, we saw the Democrats yesterday devote nine hours to Ms. Rice. We may see something similar with regard to Judge Gonzales. There's just simply a lot of anger on the Hill by Democrats at you personally and at your administration.

And isn't this going to dog your efforts at whatever you do down the line, from the Supreme Court to immigration to whatever? BUSH: You know, we're all here to serve the people.

And I'm, as I say, I'm going to go out and explain why I think it's important for us to address big issues, like Social Security reform, and take my case to the people and let them here the rationale about why even address big issues, much less the reason why I think, for example, in Social Security, there is an issue.

As I just laid out the math, it is clear that now is the time to act.

And I don't know about hostility, you know, and all that business. I guess that's your job to gauge that. When I've talked with people, I feel like people are looking forward to working with us.

QUESTION: Well, you had a Democratic senator basically call your secretary of state nominee a liar. I mean, that's some pretty harsh language...

BUSH: Well, there are 99 senators other than that person. And I'm looking forward to working with as many members as we can.

Condi Rice is a fine, fine public servant, greatly admired here in America and greatly admired around the world. And she will make a great secretary of state. And I'm looking forward to working with her.

Listen, thank you all every much for your time. I appreciate this and looking forward to working with you all as we have a productive 2005.

Thank you.

HEMMER: A wide-ranging briefing there in the briefing room at the White House. The president exiting after 48 minutes on the clock. A wide range of topics throughout the day -- Social Security, saying he will take that issue directly to the American people, urging the Senate to confirm Condoleezza Rice. That may happen within the hour, in fact, up on Capitol Hill. But, topic A, clearly is the election on four days on Sunday in Iraq. The president early on saying and admitting that some are feeling intimidated in Iraq, but he's urging the Iraqis to vote, and "defy terrorists," in his words.

Our senior White House correspondent with us as well.

John, good morning there. What more did you hear for the past 48 minutes.

KING: I think your point certainly about the president's view of Iraqi elections. The president very optimistic, defiant, if you will, to those who say the elections are a failure even before they take place. Mr. Bush saying step back and have a more historical context, that yes, these elections may not be perfect, yes, there is the insurgency and violence, but he calls it a critical first step. He's trying to reframe the debate, if you will, in this country, heading into those elections. And the president, I thought, quite defiant in an optimistic way, about trying to reframe the political debate about Iraq here at home, while acknowledging that his public standing in that debate and support for the war has changed significantly.

Another couple of quick key points, one of the key debates about Social Security is whether to call it a crisis or not, and there's been almost a sideshow of refusal to get to the debate about the painful specifics, while people debate whether or not this is indeed a crisis. The president didn't use that word today, as he has in the past. He repeatedly said "problem," not crisis. I think that was no accident at all. The president trying to reframe that debate as well.

And he also side stepped two questions that are dogging his nominees on Capitol Hill. Condoleezza Rice accused essentially of lying about Iraq, Alberto Gonzalez accused of being a part of torturing prisoners in the war on terrorism. The president sidestepping any specific questions about those two issues, instead just praising his nominees. The president here for, as you noted, Bill, 48 minutes. He understands many challenges at home and abroad, and at least early in this new term, the president trying to take the lead in communicating those challenges.

HEMMER: John, if I could, hang me with a second here, toward the end, he referred to his inauguration speech about freedom and democracy around the world, and he said -- and quoting now -- that he firmly planted the flag of liberty. Have you heard him speak like that before?

KING: No, and that was a quite colorful moment in terms of the president's body language. He also said, significantly, that it was -- quote -- "the work of generations." The president right after that speech, many saying that, how would he deal with Russia in the first meeting? How would he deal with China in the first meeting? Would he lean on the Saudis? Would he lean on the Saudis? Would he lean on Pakistan and move quickly toward democracy? The president also trying to recalibrate a bit there, saying yes, this will be very critical in every relationship, not just with Iran and Syria, but with Russia and China. But not necessarily the lead issue in every meeting. If he needs the Chinese help in getting North Korea back to the table for nuclear weapons discussion, that will be important. He will continue to use democracy.

But the president, I think, trying to say don't judge him by this speech, don't go looking five minutes after his next meeting with the president of Russia or the president of China to see if he succeeded. Call it the work of generations. The president very much saying this is critical to him, but again, a long-term process and project.

HEMMER: John, thanks for that. Also in Iraq, saying and admitting again today it a long process, and that process continues this weekend.

John, thanks there. Here is Soledad with more.

O'BRIEN: All right, and our CNN senior political analyst Bill Schneider is standing by for us this morning as well. Bill, not great timing for the president's remarks of course in light of what our top story has been all morning, which is 31 U.S. Marines reported dead in this chopper going down.

Let's talk a little bit about what the president had to say outside of expressing his condolences and saying it's a sad moment any time someone is lost. What else did you hear on Iraq?

BILL SCHNEIDER, CNN SR. POL. ANALYST: Well, he said he understands, when he was asked about it, he said he understands that a lot of people feel discouraged. Our own John King pointed out to him the polls showing that a majority of Americans in many different polls are saying that it may have been a mistake to go into Iraq.

But the president urged the American people to look at the long term, and he insisted we're making progress, and these elections are a sign of progress. You're already getting pre-spin on these elections, with the administration saying the very act of voting is a step forward and a significant advance to democracy, while a lot of critics are saying that the elections really don't mean very much and won't solve anything. The president saying you've got to get beyond that and look at the big picture and not be discourage. He essentially is taking his case directly to the people.

O'BRIEN: I thought it was interesting in that same vein that the president mentioned and referenced President Clinton twice when he was talking about taking the message to the people about Social Security, and that he planned -- almost sounded like he was going to bypass everybody and just go right to the people with his message about how Social Security is, in his mind, a good thing. I think he said Social Security, is it worst the political price? I think it is. What else did you hear on that debate?

SCHNEIDER: Well, this is what presidents often do when they have a problem dealing with Congress, dealing with the press. They say, I'm going to go directly to the American people. You can go all the way back to Woodrow Wilson, who tried to do that unsuccessfully in the fight to get the United States after World War I to join the League of Nations. He went all over the country. It didn't quite work. Clinton tried to do that a bit with health care, and as the president pointed out, with Social Security. Arnold Schwarzenegger said if the legislature of California controlled by Democrats does not give him what he wants, he's going to put measures directly on the ballot and campaign for them. This is what presidents and governors often do, they say -- in fact, they threaten to go directly to the people where this just re-elected president claims he has a far higher standing than he does. even with a Congress controlled by his own party.

O'BRIEN: Bill Schneider for us with some analysis this morning. Bill, Thanks a lot.

SCHNEIDER: Sure.

O'BRIEN: Back to Bill.

HEMMER: Democratic view now. Debbie Stabenow is a U.S. senator from the state of Michigan, also a Democrat.

Good morning, Senator. Thanks for your time...

SEN. DEBBIE STABENOW (D), MICHIGAN: Good morning.

HEMMER: ... coming out of the president's press conference there.

This is what he said about Social Security. He said if you're a senior, nothing changes for this program, but if you're 20 years old, you're looking at a bankrupt system. Is he wrong?

STABENOW: Well, that is an exaggeration. The fact is, first of all, as Democrats were very proud of having led the way to create Social Security, and we are going to make sure that it stays secure. The president's plan actually undermines the security. Privatization at $2 trillion to the national debt and does not do anything to make Social Security secure.

But you know, I also think it's important to say that Social Security can pay 100 percent of the benefits that we have paid into for almost the next 50 years. The crisis that we are focused on are the jobs that are leaving our country today, the people in Michigan that don't have a job, the businesses that can't afford health care, the seniors that can't afford to buy medicine today, and so our agenda that we announced this week is a very bold agenda on security, responsibility, putting troops first, but also focusing on economic security and how we make sure people right now have a job, are able to pay for their health care, send the kids to college.

HEMMER: Senator, back to Social Security -- do you admit the program is in trouble?

STABENOW: Down the road, when we get past 2000, somewhere between 42 and 52, it goes from being able to pay 100 percent of the benefits to somewhere between 70 percent and 80 percent. There's a gap, no question.

HEMMER: So if that's the case, and you're looking down the road, and I pardon for the interruption, but we're short on time here, why not make the change now that's necessary and pick up the ideas gained that the president talked about today?

STABENOW: First of all, we support small changes that will have big results 50 years down the road. The president wants to unravel Social Security, which is America's insurance policy, by privatizing it. You do nothing to add a day to the length of Social Security trust fund, and, in fact, you jeopardize it by adding $2 trillion to the debt.

Potentially we've heard from the White House that they are possibly going to be proposing cutting benefits in order to pay for that. We don't know. I'm looking forward to the president's hopefully more specific proposals, because we are not sure. Everything we have seen adds to the debt, cuts benefits, makes Social Security less secure. HEMMER: We are told we will get more details next Wednesday night in Washington at the State of the Union Address then.

Thank you, senator, Debbie Stabenow, Democrat out of Michigan. Thanks for your time -- Soledad.

O'BRIEN: A short break ahead. Now when we come back, we're going to update you on the very latest of this train crash in Glendale, California. Stay with us. We're back in just a moment.

(COMMERCIAL BREAK)

O'BRIEN: There's lots to update you on this morning. In fact, we've got new death toll numbers in this train crash in Southern California in Glendale, right at the height of the commute. We're going to bring you up to speed on that.

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