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CNN Live Today

Presidential News Conference

Aired May 31, 2005 - 10:30   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.


DARYN KAGAN, CNN ANCHOR: United Airlines is engaged in 11th-hour talks with its largest union. About 20,000 ground workers are threatening to strike if the airline doesn't hammer out a contract agreement with machinists and aerospace workers. Union officials say they're encouraged, but if the deal falters, a bankruptcy judge could step in this afternoon and decide if the union contract can be broken.
Jurors in the Michael Jackson trial have the day off, but it will be a critical day for the attorneys. Prosecutors and Jackson's defense team will hammer out details of the all-important jury instructions. Closing arguments could get under way tomorrow.

And now to Florida, where police say two teenagers beat a homeless man to death for fun. The boys have been charged with murder. Investigators say the teens confessed to the crime, but one boy's family says it's all a mistake.

Paul Milliken of Central Florida News 13 has the story from Volusia County, Florida.

(BEGIN VIDEOTAPE)

PAUL MILLIKEN, REPORTER, CFN 13 (voice-over): Appearing in court for the first time, Jeffrey Spurgeon says just two words...

JEFFREY SPURGEON, DEFENDANT: Appoint one.

MILLIKEN: ... "Appoint one," asking for a public defender. The 18-year-old is accused of beating a homeless man to death in this wooded area near Holly Hill.

Investigators found the body Saturday. By Sunday, Spurgeon and a 14-year-old boy had been arrested.

VICKI SPURGEON, MOTHER: This is not something he would do.

MILLIKEN: Spurgeon's mother Vicki watched her son in court, convinced he's taking the blame for his friends.

V. SPURGEON: And my son will not tell. And he'll say that he did it all. He's did it before. He's took the blame several times for his friends.

MILLIKEN (on camera): Spurgeon's mother says she thinks several neighborhood teens were involved in the beating. And deputies have confirmed more arrests are possible. (voice-over): It was Spurgeon's mother who called authorities about the body, but she says it was not done to put her son behind bars.

V. SPURGEON: It was a rumor that there was a body, a homeless man laying in the woods on 13th and Nova (ph). So I called in an anonymous tip and said, "I heard this and I wanted to know if it was true."

UNIDENTIFIED MALE: Some of you may be released today...

MILLIKEN: Jeffrey Spurgeon is not released. He's being held in jail with no bond. To deputies, he's a confessed killer who says he beat a man for fun. To his parents, he's a boy who fell in with the wrong crowd.

In Volusia County, Paul Milliken, Central Florida News 13.

(END VIDEOTAPE)

O'BRIEN: The 14-year-old boy charged in the attack is being held in a juvenile-detention center. He family couldn't be reached for comment.

We have new details on Sunday's gruesome rampage in Bellefontaine, Ohio. Authorities there say on the very day that 18- year-old Scott Moody was set to graduate from high school, he apparently went to the home of his grandparents who had taken out this newspaper ad. Police say he shot them to death and then headed home. There, authorities say, he killed his mother, two teenaged friends, and wounded his sister, and then killed himself. Here is the 911 call that was placed by a stepsister of one of the victims.

(BEGIN VIDEO CLIP)

CALLER: Oh, my God! Oh, God! The son and the girlfriend are killed, too.

OPERATOR: What?

CALLER: I found the son, too, and his girlfriend.

OPERATOR: What's the matter?

CALLER: Oh, my God.

OPERATOR: What's going on, honey?

CALLER: The son and the girlfriend are beat up too.

OPERATOR: The son and the girlfriend? OK.

CALLER: (INAUDIBLE). I got to get off the phone.

OPERATOR: I need the address, honey.

CALLER: (INAUDIBLE) is the only one that's awake.

OPERATOR: There's only one awake?

CALLER: Yes.

OPERATOR: How many people have been beat up?

CALLER: Four. Four. There's five. There's another one. Oh, my God, there's one in the living room, too.

OPERATOR: Okay. What's going on right now, hon?

CALLER: She's telling me there's five dead. There's another one on the couch.

(END VIDEO CLIP)

KAGAN: The caller had been alerted by Moody's sister, who survived the rampage. Fifteen-year-old Stacy Moody is in critical condition.

We're still standing by. A news conference by President Bush set to begin in about 10 minutes. We'll take you live to the Rose Garden of the White House when it begins.

Right now, a quick break.

(COMMERCIAL BREAK)

KAGAN: Breaking news earlier today, the Arthur Andersen accounting firm catches a break at the U.S. Supreme Court, having a conviction in the Enron-related shredding case overturned, and a unanimous decision.

With more on that, Here' Allen Chernoff in New York City.

Hi, Allen.

ALLEN CHERNOFF, CNN CORRESPONDENT: That's right, Daryn, it was back in June of 2002, that Arthur Andersen, once a big-five accounting firm was convicted of tampering with witnesses by destroying documents related to its audits of Enron. The Supreme Court this morning has overturned that conviction unanimously in a 9-0 decision, and the court ruling that the jury instructions in the case were simply too broad, too vague. Chief Justice William Rehnquist writing, "The jury instructions here were flawed."

So this overturning that conviction, but in a sense, this decision is really moot, because the Arthur Andersen firm is no longer practicing. It is a tiny it is entity now, really just wrapping up legal issues, and this perhaps could help the firm just dealing with lawsuits that it has been confronting.

But as a result of the indictment against Arthur Andersen, the firm pretty much went out of business. Its name was tied not only to the Enron accounting scandal, but also to Tyco and other very big-name scandals, so Arthur Andersen certainly did have its name very much in the mud, so to say, with regard to accounting issues. And this was the final blow to the accounting firm. But, again, the Supreme Court now overturning that conviction -- Daryn.

KAGAN: All right, thanks for providing some context there. Allan Chernoff in New York City.

(STOCK MARKET REPORT)

KAGAN: Once again, standing by. About five minutes away from President Bush coming to the podium in the Rose Garden and the White House, a news conference. And we'll go there live when it begins. Right now we'll fit in a quick break.

(COMMERCIAL BREAK)

KAGAN: We're just about a minute away from President Bush beginning a news conference here. Congress out of town, a chance for the White House to have the stage to themselves.

And Bob Franken is standing by at the White House today to tell us a few of the topics that the president might be talking about. Hello.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Hello.

First of all, his I told you so, I promised you that each month I'd have a news conference, and here it is, May 31st. So he has made May. Of course, it also comes as a time when the president's poll numbers are beginning to slip just a little bit.

The latest CNN/"USA Today" poll shows his approval rating 46 percent, and it comes at time when some news organizations, including this one, have started to use the term "lame duck" just a little bit. And in clear effort by the administration to try and make sure that there isn't a loss of momentum. We're in a town where perception is reality.

The president is going to open his news conference with some statements, some statements that have to do with his view of a growing economy and his view that the Congress needs to act on his energy bill by the August recess and move forward on the budget bill and on the Central American Free Trade Agreement.

And of course he'll be talking about Social Security, which he talks about incessantly, although there's been something of a lack of traction in the minds of many in his efforts to sell the program that he is going to sell.

In any case, this, as I said, is the news conference that occurs in May. The last one he held was at the end of April. He's held 20 since he has been in office and this one comes on a beautiful day in Washington. Here's the president now.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Good day. Thank you. Please be seated. Hope you enjoyed your Memorial Day weekend. My message to Congress when they come back is this: that our economy is strong, but we need to work together to make sure that we continue to have a prosperous economy, so people can find jobs.

I say it's strong because we've added over 3.5 million new jobs over the last two years and the unemployment rate is 5.2 percent. More Americans are working today than ever before. Homeownership is an all-time high. Small businesses are flourishing. Families are taking home more of what they earn.

Obviously, these are hopeful signs. But Congress can make sure that the signs remain hopeful. Here are four good things they need to do.

First, they need to finish the work on an energy bill. We've gone more than a decade with an energy strategy.

BUSH: And as a result, we have grown more dependent on foreign sources of energy. And consumers see the consequences of that at the gas pump on a daily basis.

For the past four years, I've called on Congress to pass legislation that encourages energy conservation, that promotes domestic production in environmentally friendly ways, that helps diversify away from foreign oil, that modernizes the electricity grid.

It's got a substantial amount of research and development money to help us transition from a hydrocarbon economy to a diversified source of energy economy.

The House passed a bill and the Senate Energy Committee passed an energy bill this past week. I appreciate their good work.

Now they need to get the bill off the floor, into conference, resolve their differences and get me a bill before the August recess.

BUSH: That's what the American people expect and that's what I expect.

Secondly, Congress needs to be wise about the taxpayers' dollars.

I proposed a disciplined federal budget that holds discretionary spending growth below the rate of inflation, and reduces discretionary spending for non-security programs.

The House and the Senate have worked together to pass a responsible budget resolution that meets our priorities and keeps us on track to cut the deficit in half by 2009.

The weeks ahead will bring important decisions on spending bills and the weeks ahead will bring in efforts to rein in mandatory spending. We look forward to working with Congress to do just that.

Congress must keep its commitment to spending restraint if we want this economy to continue to grow. Third, Congress needs to ratify the Central American and Dominican Republic free trade agreement that's called CAFTA. This agreement is a good deal for American workers and farmers and small businesses.

BUSH: See, about 80 percent of the products from Central America and the Dominican Republic now enter the United States duty-free. Yet our exports to Central America and the Dominican Republic face hefty tariffs.

CAFTA will level the playing field by making about 80 percent of American exports to those countries duty-free.

I've always said I'm for free and fair trade. This makes our trade with the CAFTA countries fair. And that's important. After all, the CAFTA agreement will open a market of 44 million consumers to our producers, to our workers -- the products that our workers make, to our farmers.

We'll lower barriers in key sectors like textiles which will make American manufacturers more profitable and competitive in the global market and keep jobs here in America.

And it will support young democracies.

BUSH: And that's going to be important. There's a geopolitical, as well as economic, concern for CAFTA. And Congress needs to pass this piece of legislation.

And finally, Congress needs to move forward with Social Security reform. I'm going to continue traveling our country talking about Social Security reform. I'll remind our seniors who are getting a check today that nothing will change. And, yes, I'm going to continue to remind the people that we've got a serious problem for younger workers.

As part of Social Security reform, Congress should ensure that future generations receive benefits equal to or greater than the benefits today's seniors get. And Congress should help those who rely most on Social Security by increasing benefits faster for low-income workers than those workers who are better off.

And as we permanently solve the Social Security problem, we need to make Social Security a better deal for younger workers by allowing them to take some of their own money and invest it in a voluntary personal savings account.

BUSH: A voluntary personal savings account is very similar to the personal savings account members of Congress can do.

See, my attitude is if a personal savings account -- a voluntary personal savings account is good enough for a member of the United States Congress or a member of the United States Senate -- in other words, they felt that was a good enough deal for them so they could get a better rate of return, it surely seems like it's good enough for workers across the country. And so I look forward to working with the United States Congress on these priorities to help strengthen the long-term economic security of the country.

The American people expect people of both parties to work together. They look forward to the Congress setting aside partisan differences and getting something done, and so do I. I'm looking forward to that.

BUSH: So I look forward to welcoming the Congress back and working together with them.

And now I'll be glad to take some of your questions.

QUESTION: Mr. President, since Iraq's new government was announced on April 28th, more than 60 Americans and 760 Iraqis have been killed in attacks.

Do you think that the insurgency is gaining strength and becoming more lethal? And do you think Iraq's government is up to the job of defeating the insurgents and guaranteeing security?

BUSH: I think the Iraq government will be up to the task of defeating the insurgents. I think the Iraqi people dealt the insurgents a serious blow when they had the elections.

In other words, what the insurgents fear is democracy, because democracy is the opposite of their vision. Their vision is one where a few make the decision for many, and if you don't toe the line there's serious consequences.

BUSH: The American people just have got to think about the Taliban, if you're interested in understanding how the insurgents think. They support and ideology that is the opposite of freedom, in my judgment, and they're willing to use the terror tools necessary to impose their ideology.

And so what you're seeing is a group of frustrated and desperate people who kill innocent life. And, obviously, we mourn the loss of every life.

But I believe that the Iraqi government's going to be plenty capable of dealing with them, and our job is to help train them so that they can.

I was heartened to see the Iraqi government announce 40,000 Iraqi troops are well-trained enough to help secure Baghdad.

That was a very positive sign. It's a sign that they -- the Iraqi leaders -- understand they are responsible for their security, ultimately, and that our job is to help them take on that responsibility.

So I'm pleased with the progress. I am pleased that, in less than a year's time, there's a democratically elected government in Iraq, there are thousands of Iraqi soldiers trained and better equipped to fight for their own country, that our strategy is very clear and that we will work to get them ready to fight, and when they're ready, we'll come home.

BUSH: And I hope that's sooner rather than later.

But nevertheless, it's very important that we complete this mission because a free Iraq is in our nation's long-term interests. A democracy in the heart of the Middle East is an essential part of securing our country and promoting peace for the long run. It's very important for our country to understand that.

A free Iraq will set such a powerful example in a neighborhood that is desperate for freedom. And therefore, we will complete the mission and support this elected government.

BUSH: Of course, they've got other tasks. They've got to write a constitution, and then have that constitution ratified by the Iraqi people. And then there'll be another election. And we, of course, will help them, as will many countries around the world.

QUESTION: The former head of Russia's oil company Yukos was sentenced to nine years in prison camp today. Do you think the Kremlin went after him because he was a political threat? Are there any repercussions to U.S.-Russian relations as a result of this case?

BUSH: I expressed my concerns about the case to President Putin because, as I explained to him here, you're innocent until proven guilty, and it appeared to us -- at least people in my administration -- that it looked like he had been adjudged guilty prior to have a fair trial. In other words, he was put in prison and then was tried.

I think what'll be interesting -- and so we've expressed our concerns about the system.

What'll be interesting to see is whether or not he appeals -- I think we think he is going to appeal -- and then how the appeal will be handled.

BUSH: So we're watching the ongoing case.

QUESTION: I wonder if you could explain the administration's decision to allow Iran, in its negotiations with the Europeans, to get WTO status, ascension into the WTO; whether you think that deal, in a sense, has legs.

And also you talked about Iraq being a powerful symbol in that part of the world. One of the things you said going into the war was that it would deter other countries, rogue nations, from developing weapons of mass destruction. And when you think about North Korea and Iran, the opposite is true: They haven't been deterred at all. Why do you think that is?

BUSH: The first part of your question was about our agreement that Iran should apply for WTO.

BUSH: In other words, we said, "Fine, if you want to apply for WTO, go ahead and apply." And we did that to facilitate the E.U.-3 discussions with Iran.

I've always believed that, obviously, the best way to solve any difficult issue is through diplomacy. And in this case, France, Great Britain and Germany are handling the negotiations on behalf of the rest of the world, which is those nations which are deeply concerned about Iran having a nuclear weapon.

Now, our policy is very clear on that, and that is that the Iranians violated the NPT agreement, we found out they violated the agreement, and therefore they're not to be trusted when it comes to highly enriched uranium or highly enriching uranium.

BUSH: And therefore our policy is to prevent them from having the capacity to develop enriched uranium to the point where they're able to make a nuclear weapon.

Secondly -- and so therefore we're working with the E.U.-3 to hopefully convince the Iranians to abandon their pursuits of such a program.

BUSH: And it appears we're making some progress.

So our decision was to allow them to join the WTO -- or to apply to join the WTO -- which is not ascension to the WTO, it's just the right to make an application -- seemed like a reasonable decision to make in order to advance the negotiations with our European partners.

Secondly, in terms of North Korea, North Korea had a weapons program that they had concealed, as you might recall, prior to 2002 -- as a matter of fact, it was prior to 2000. It was a bilateral -- so- called bilateral agreement between North Korea and the United States and it turns out that they had violated that agreement because they were enriching uranium, contrary to the agreement.

BUSH: We caught them on that. And therefore I decided to change the policy to encourage other nations to be involved with convincing North Korea to abandon its weapons program. And that's where we are.

And it's important to have China at the table, for example, saying the same thing that the United States is saying, and that is that, "If you want to be a responsible nation get rid of your weapons programs." It's important to have Japan and South Korea and Russia saying the same thing.

We've got a lot of work to do with the North Korean because he tends to ignore what the other five nations are saying at times. But that doesn't mean we're going to stop, and can continue to press forward to making it clear that if he expects to be treated as a responsible nation that he needs to listen to the five nations involved.

QUESTION: But would you acknowledge that the war did not deter Iran and North Korea from what they're doing to pursue their programs?

BUSH: North Korea already had its weapons program before, as you know, as did Iran. And as I also told you, that we want diplomacy to work. And we want diplomacy to be given a chance to work, and that's exactly the position of the government. And hopefully it will work. I think it will.

QUESTION: A few moments ago you mentioned four economic priorities that Congress has to address to keep the economy, in your words, "going on the right track and getting stronger."

QUESTION: I noticed you didn't mention making permanent the tax cuts that had been passed during your first term. Was that an oversight, or do you think that sacrificing some of those tax cuts might ultimately be necessary to help balance the budget deficit?

BUSH: Actually, in my budget, as you know, the budget I submitted was one that encouraged permanency.

I believe it's essential that we have the tax cuts be permanent. It was implicit in my statement. I haven't changed. I appreciate your clarification.

Congress needs to make the tax cuts permanent.

QUESTION: Mr. President, you talked on your reelection about having political capital -- you have a Republican Congress. How, then, do you explain not being able to push through more of your agenda, especially when it comes to Social Security reform, which the public does not seem to be accepting and your own party is split on?

BUSH: First of all, I think the public does accept the fact that Social Security is a problem. You might remember, a couple months ago around this time, people were saying, "This is not a problem. What's he bringing it up for? Nobody sees it as a problem except for him."

And then, all of a sudden, people began to look at the facts and realized that, in 2017, Social Security, the pay-as-you-go system will be in the red, and in 2042 it's going to be bankrupt.

BUSH: And people then took a good hard look at the numbers and realized that Social Security is a problem. And that's the first step toward getting Congress to do something.

See, once they hear from the people we got a problem, the next question the people ask, What do you intend to do about it?

My second goal has been to convince and assure seniors that nobody is going to take away their checks.

As a veteran of American politics, I have withstood the onslaught that says, "When George W. talks about reforming Social Security, that means he's going to take away your check."

BUSH: Over the last four years seniors didn't have their checks taken away. So hopefully they're beginning to realize that some of this politics is ringing hollow. But it's very important for seniors to understand that when we talk about Social Security reform, that they're going to get their check, because there's a lot of people relying upon their Social Security checks.

Thirdly -- so we're just making progress. And this is just the beginning of a very difficult debate.

I recognize some in Congress wish I hadn't have brought the issue up. I mean, the easy path is to say, "Oh, we don't have a problem; let's ignore it yet again."

But I view my role as the president as somebody who puts problems on the table and then calls people together to solve them.

This is an issue that really hasn't had that much time in the halls of Congress -- hadn't been debated in the halls of Congress since 1983.

BUSH: And so I'm not surprised that there is a reluctance and I'm not surprised that there has been some initial push-back. But all that does is make me want to continue to travel and remind people that Congress has a duty to come up with some solutions.

They're beginning to have hearings in the Congress. The Ways and Means and the Finance Committee in the Senate are going to have hearings. There are some interesting ideas that have been proposed. We've proposed some interesting ideas.

One idea is make sure that low-income seniors get benefits such that, when they retire, they're not in poverty.

BUSH: We proposed a plan that takes the issue about solvency farther down the road than any other president's proposed.

In other words, we're putting ideas out.

And so, I look forward to working with Congress.

There is a duty to respond. There's a duty for people to bring forth their ideas. Now that people understand there's a problem, people have been elected to say, "OK, here's what I intend to do about it."

And we're doing our duty, and I expect people from both parties to do it as well.

Listen, I readily concede there's this attitude in Washington where we can't work together because one party may benefit and the other party may not benefit.

BUSH: The people don't like that. They don't like that attitude. They expect members of both parties to come together to solve problem.

And Social Security is a serious problem that requires bipartisan cooperation to solve the problem.

QUESTION: Mr. President, recently Amnesty International said you have established, quote, "a new gulag of prisons around the world beyond the reach of the law and decency."

I'd like your reaction to that, and also your assessment of how it came to this -- that that is a view not just held by extremists and anti-Americans, but by groups that have allied themselves with the United States government in the past, and what the strategic impact is that in many places in the world the United States these days under your leadership is no longer seen as the good guy.

BUSH: I'm aware of the Amnesty International report, and it's absurd. It's an absurd allegation.

The United States is a country that promotes freedom around the world. When there's accusations made about certain actions by our people, they're fully investigated in a transparent way.

It's just an absurd allegation.

In terms of, you know, the detainees, we've had thousands of people detained. We've investigated every single complaint against the detainees.

It seemed like to me they based some of their decisions on the word of and the allegations by people that were held in detention, people who hate America, people that have been trained in some instances to disassemble, that means not tell the truth.

BUSH: And so it was an absurd report. It just is.

QUESTION: Sir, you mentioned a moment ago a push back. And there's a perception that Congress has been pushing back recently.

My question is, do you worry that you might be losing a bit of momentum?

BUSH: Well, my attitude toward Congress will be reflected on whether or not they're capable of getting anything done.

We got a good budget out of Congress. And we got some legal reform out of Congress. We got Priscilla Owen confirmed in the Senate, which is a positive thing. Looks like we'll get a couple of more judges on the appellate bench confirmed.

BUSH: But I think the standard by which Congress should be judged is whether or not they can get an energy bill, and I think they will, and I look forward to working with them on an energy bill.

Obviously, I mentioned CAFTA. We've got to get CAFTA, which is a very important trade agreement. It'd be good for workers.

And I'm looking forward to working with them on Social Security. Those are big issues that require action.

Things don't happen instantly in Washington, D.C.

I know that part of your job is to follow the process and follow the politics, and who's up and who's down. But I've been around here long enough now to tell you, and tell the people listening, things just don't happen overnight.

BUSH: It takes a while.

And one thing is for certain, it takes a president willing to push people to do hard things. Because keep in mind, we haven't had an energy strategy in this country for over a decade, the Social Security hasn't been on the table since 1983 -- I mean, seriously on the table.

And so I'm asking Congress to do some difficult things. And I'm going to keep asking them to do some difficult things.

And I'm optimistic, when it's all said and done, that we will have come together and have helped solve some of these significant problems.

QUESTION: Are you worried, sir, that you're losing some of your push?

BUSH: I don't worry about anything here in Washington, D.C. I mean, I feel comfortable in my role as the president, and my role as the president is to push for reform.

The American people appreciate a president who sees a problem and is willing to put it on the table.

Listen, admittedly I could have taken the easy route and said, "Let's don't discuss Social Security till somebody else shows up in Washington." But that's not what the American people want from their president.

And we have a serious problem in Social Security. Athalia (ph) asked about the Social Security issue and I reminded her that the attitude is beginning to shift here in Washington. Because for a while, people here said, "There really wasn't a significant problem, and I wish he hadn't've brought it up."

And now people are beginning to see the realities of Social Security and the fact that we're about to pass on a huge burden to a young generation of Americans; a burden, by the way, which doesn't have to be passed on.

BUSH: We can permanently solve Social Security and should permanently solve it. And I've laid out some initiatives to get us on the way to permanently solving Social Security.

I look forward to the day of sitting down with Republicans and Democrats and congratulating both political parties on doing what's right for the American people; a day, by the way, the American people expect to come as well. QUESTION: Two questions about the consistency of the U.S. foreign policy that's built on the foundation of spreading democracy and ending tyranny.

QUESTION: One, how come you have not spoken out about the violent crackdown in Uzbekistan, which is a U.S. ally in the war on terror?

And why have you not spoken out in favor of the pro-democratic groups in Egypt that see the election process there unfolding in a way that is anything but democratic?

BUSH: Well, I thought I did the other day in terms of the Egyptians. I think you were traveling with Laura, maybe you just got back.

But I was asked about the Egyptian elections, and I said, "We expect for the Egyptian political process to be open and that for people to be given a chance to express themselves in an open way, in a free way. And we reject any violence toward those who express their dissension with the government."

BUSH: I'm pretty confident I said that with President Abbas standing here, maybe not quite as articulately as just then.

In terms of Uzbekistan, thanks for bringing it up. We've called for the International Red Cross to go into the Andijan region to determine what went on.

And, listen, we expect all our friends -- as well as those who aren't our friends -- to honor human rights and protect minority rights. That's part of a healthy and a peaceful world.

It will be a world in which governments do respect people's rights. And we want to know fully what took place there in Uzbekistan, and that's why we've asked the International Red Cross to go in.

QUESTION: On your nomination of Mr. Bolton to the United Nations, it is now, by most accounts, under a filibuster -- the Democrats refusing to invoke cloture last week.

I wonder if you could address their demands for ongoing documents in the case of Mr. Bolton's nomination, as well as what many Republicans have now criticized as a pervasive attitude of filibustering on behalf of the opposition on Capitol Hill.

BUSH: You know, I thought John Bolton was going to get an up-or- down vote on the Senate floor, just like he deserves an up-or-down vote on the Senate floor. And clearly he's got the votes to get confirmed.

And so I was disappointed that once again the leadership there in the Senate didn't give him an up-or-down vote.

And the reason it's important to have an up-or-down vote is because we need to get our ambassador to the United Nations to help start reforming that important organization.

BUSH: As I mentioned to you, I think, at the press conference in the East Room that the reason I picked Bolton is he's a no-nonsense kind of fellow who can get things done. And we need to get something done in the United Nations.

This is an organization which is important, it can help a lot in therms of the democracy movement. It can help deal with conflict and civil war. But it's an organization that is beginning to lose the trust of the American people, that hadn't already, and therefore we need to restore that trust.

We pay over $2 billion a year into the United Nations and it makes sense to have somebody there who is willing to say to the United Nations, "Why don't you reform? Let's make sure that the body works well and there's accountability and taxpayers' money is spent wisely."

BUSH: And it's important that people in America trust the United Nations, and Bolton will be able to carry that message.

Now, in terms of the request for documents, I view that as just another stall tactic, another way to delay, another way to not allow Bolton to get an up-or-down vote.

We've answered questions after questions after questions. Documents were sent to the Intelligence Committee. The Intelligence Committee reviewed the NSA intercept process and confirmed that, you know, Bolton did what was right.

So it's just a stalling tactic.

BUSH: And I would hope that when they get back that they stop stalling and give the man a vote, just give him a simple up-or-down vote.

QUESTION: What (inaudible) to do about this tactic in general, sir?

BUSH: Well, it's certainly been a tactic that's been used on judges and Bolton, if this is a filibuster -- I don't know what you call it.

I'm not sure they actually labeled it "filibuster." Thus far it's a stall. Stall headed toward filibuster, I guess.

All I know is, the man's not getting a vote. And it's taking a long time to get his vote. And he's been through hearings and questions and questionnaires. You know, it's pretty obvious to the American people and to me that you can tie up anything in the United States Senate if you want to.

BUSH: But it also ought to be clear that we need to get an ambassador to the United Nations as quickly as possible. So I hope he gets a vote soon.

QUESTION: Thank you, sir. Last week, you made clear that you don't think there's any such thing as a spare embryo.

Given that position, what is your view of fertility treatments that routinely create more embryos that never result in full-term pregnancies? And what do you believe should be done with those embryos that never do become pregnancies or result in the birth of a child?

BUSH: As you know, I also had an event here at the White House with little babies that had been born as a result of the embryos that had been frozen -- they're called snowflakes -- indicating there was an alternative to destruction of life.

BUSH: But the stem cell issue is really one of federal funding. That's the issue before us. And that is whether or not we use taxpayers' monies to destroy life in order to hopefully find cure for terrible disease. And I have made my position very clear on that issue, and that is, I don't believe we should.

Now, I made a decision a while ago that said there had been some existing stem cells and therefore it was OK to use federal funds on those because the life decision had already been made.

But from that point going forward I felt it was best to stand on principle, and that is, taxpayers' monies for the use of experimentation that would destroy life is a principle that violates something I -- I mean, is a position that violates a principle of mine.

BUSH: And I stand strong on that, to the point where I'll veto the bill as it now exists.

And having said that, it's important for the American people to know that there is some federal research going on on embryonic stem cells today. There's been over 600 experiments based upon the stem cell lines that existed prior to my decision. There's another 3,000 potential experiments they tell me that can go forward. There's a lot of research going on on adult stem cell research.

We got an ethics panel that has been -- that is in place that will help us hopefully develop ways to continue to figure out how to meet the demands of science and the need for ethics, so that we can help solve some of these diseases.

BUSH: And listen, I understand the folks that are deeply concerned for their child who might have juvenile diabetes. I know that the moms and dads across the country -- in agony about the fate of their child. And my message to them is is that there is research going on, and hopefully we'll find the cure, but at the same time, it's important in this society to balance ethics and science.

QUESTION: This morning, you reiterated diplomacy as the way to deal with North Korea.

QUESTION: With all due respect, some people say that's precisely the wrong approach, because diplomacy has produced nothing, while at the same time it has allowed North Korea to progress in its nuclear program.

What do you say to that?

BUSH: Well, let me see, if it's the wrong approach -- if diplomacy is the wrong approach, I guess that means military. That's the idea -- it's either diplomacy or military. And I am for the diplomacy approach.

And so for those who say that we ought to be using our military to solve the problem, I would say that while all options are on the table, we've got a ways to go to solve this diplomatically.

Now, I always get asked that: "How long are you going to this? How long is that going to happen? Why don't you give us a timetable?"

And I'm not giving timetables. I am going to say that we are in -- and it's very important for our partners to understand that I believe the six-party talks can and will work.

BUSH: We're constantly in touch with our Chinese counterparts.

Sometimes people move a little slower than American society and the world, and, you know, sometimes expectations around the world are maybe different from ours.

But fortunately, we've got everybody on the same page that says that the idea of North Korea having a nuclear weapon isn't good.

And by the way, that started with, as you know, you might recall the visit I had with Jiang Zemin (ph) in Crawford. And we came out of that visit with a common declaration that said it's in our interests that North Korea not have a nuclear weapon.

And that was a positive step forward because, once you get a country to commit to that goal, then it enables us to work together to achieve that goal in a peaceful way.

The other thing is, is that it's clear from the other five parties there -- the other four parties in our five-party coalition dealing with the sixth party, which is North Korea -- is that people do want to solve this issue diplomatically.

BUSH: And so it's a matter of continuing to send a message to Mr. Kim Jong Il that if you want to be accepted by the neighborhood and be a part of those who are viewed with respect in the world, work with us to get rid of your nuclear weapons program.

QUESTION: Mr. President, you often talk about a culture of life and also about your responsibility as president to lead.

Looking forward, what specific policy initiatives will you propose in the balance of your presidency to expand the culture of life? BUSH: Well, part of it is just to constantly remind people that we have a responsibility to the least of us in our society. Part of a cultural life is to continue to expand the Faith-Based and Community- Based Initiative to help people who hurt.

Part of it is to recognize that in a society that is as blessed as we are, that we have a responsibility to help others, such as AIDS victims on the continent of Africa or people who hunger in sub-Sahara, for example.

The culture of life is more than just, you know, an issue like embryonic stem cell. It's promoting a culture that is mindful, to help save lives through compassion.

BUSH: And my administration will continue to do so.

QUESTION: Mr. President, back to North Korea for a second. Why has the United States scraped the one link between our militaries when there has been no threat or harm to Americans participating in those missions to recover bodies of Americans killed in action during the Korean War there?

BUSH: The secretary of defense decided to take a -- what he's referring to is, is that -- I wouldn't call it scraped -- is that the verb you used, "scraped"?

I would use a different verb. I would use "reassess" the mission. See, scraped means that we're not going to do it ever again. I think that's what that means.

BUSH: And what the secretary of defense has said, "Let me just take a look and make sure that, as we send people into North Korea, that we're fully mindful of them being able to go in and get out." No immediate threat, just an assessment, is how I would put it.

But thank you for the question.

QUESTION: Can you talk a little bit about the process you're using to pick your next Supreme Court justice? And is that going to be affected at all by the agreement that was reached between the 14 Republicans and Democrats on judicial nominations?

BUSH: Well, that depends on whether or not the Senate will give my person an up-or-down vote.

Here's my process.

BUSH: One, I'm obviously going to spend a lot of time reviewing the records of a variety of people and looking at their opinions and their character and will consult with the members of the United States Senate at the appropriate time.

I know there's been a lot of talk about consultation between the White House and the Senate, and we do consult. Obviously, we consult on district judges. And that we listen to their opinions on appellate judges; "their opinions" being the opinions from the home state senators as well as others.

I look forward to talking to members of the Senate about the Supreme Court process, to get their opinions as well, and will do so. And will do so.

But, obviously, it's -- I told the American people I would find people of a certain temperament that would serve on the bench, and I intend to do that.

BUSH: But we will consult with the Senate.

And in terms of whether that agreement means that a senator's going to get an up-or-down vote, I guess it was vague enough for people to interpret the agreement the way they want to interpret it.

I'll put a best face on it and that is that since they're moving forward with Judge Owen, for example, and others, that "extraordinary circumstances" means just that: really extraordinary. I don't know what that means.

I guess we're about to find out when it comes to our appellate judges.

But I was pleased to see Priscilla Owen get an up-or-down vote. And she passed quite comfortably. She's a very good judge.

And then, of course, Pryor and Judge Brown will be coming up pretty soon, I hope.

BUSH: And I would hope they would get confirmed as well. They're good judges.

QUESTION: Good morning, Mr. President.

BUSH: Thank you for that. Thank you.

QUESTION: Thank you.

Back on May 11th, I believe was the date, as you were off campus for recreation, a small plane came into restricted air space. The alarm went off here at your house. A military operation ensued over Washington. Your staff says you were not notified because that was the protocol.

Two questions: Do you think you should have been notified? And is there something wrong with protocols that render the president unnecessary when there's a military operation over Washington?

BUSH: Obviously, we do have a protocol in place dealing with a situation that can unfold very rapidly.

These planes enter the air space quickly, and so there's got to be something in place that can be dealt with in an expeditious manner. And we have such a plan, and I'm comfortable with the plan.

And secondly, I was comfortable with the decision by the people around me there, out there in Maryland.

BUSH: Anytime a situation like this comes up, people are constantly reviewing the situation. But I was very comfortable with the decision they made.

QUESTION: Did you (OFF-MIKE) your wife?

(LAUGHTER)

BUSH: Herman, here's the way it is. She often disagrees with me.

Thank you very much, Herman, for that.

Go to the mike, Matt. We want you heard. We want you resonating around the country.

QUESTION: I appreciate that, Mr. President. Thank you.

My question is about China, which looms larger in the lives of Americans, sir. They finance an ever larger part of our trade deficit. Americans are concerned about China's growing economic might and of course about the oppression of human rights and religious minorities there.

QUESTION: My question, sir, is how should Americans think about China -- as an ally, a rival, a competitor, a friend?

BUSH: I think the relationship with China's a very complex relationship, and Americans ought to view it as such.

China is an emerging nation. It's an amazing story to watch here. It's consuming more and more natural resources. It is generating jobs and exporting a lot of goods. It's a massive market.

And so, on one hand, we ought to look at China as an economic opportunity. And the best way to deal with China is to say, "Look, there are some rules, and we expect you to abide by the trade rules."

And as she grows and as trade becomes more complex, you'll see more and more instances where the United States is insisting upon fair trade.

BUSH: We expect China to deal with the world trade in a fair way.

Now, in terms of security matters, obviously we just spent a lot of time talking about North Korea. China can be a very good partner in helping to secure the world.

The best way to convince Kim Jong Il to get up and give up his weapons is to have more than one voice saying the same thing. And therefore China is a partner in this case in terms of helping to secure that part of the world from nuclear weapons.

China, as well, can be helpful in the war on terror. BUSH: They're just as concerned as we are on the war on terror.

China is a -- obviously, there's tension about Taiwan that we have to deal with. And I made my position very clear and very consistent about Taiwan. The Taiwanese understand my position, the Chinese understand my position.

So in this case, the relationship is one of helping to solve that problems, is to keeping stability in the region so that eventually there'll be a peaceful solution to that issue.

And so China is a fascinating country that is significant in its size. Its economy is still small, but growing. But as well, I believe we have an obligation to remind the Chinese that any hopeful society is one in which there's more than just economic freedom, that there's religious freedom and freedom of the press.

BUSH: And so, in my meetings with the different Chinese leaders with whom I've had the honor of meeting, I've always brought up issues such as the Dalai Lama, or the Catholic Church's inability to get a bishop into the country, or the need for the country not to fear evangelicals, but to understand religious freedom leads to peace.

And so I'll continue doing that so long as I'm the president, and at the same time help deal with this very complex relationship.

Did you have your hand up?

QUESTION: I did, sir. Thank you very much, Mr. President.

At the Naval Academy last week, you spoke of a midshipman named Edward Slavis, who graduated and has served in Iraq, and you quoted him as saying that the mission will be a success and, 20 or 30 years from now, historians will look back on it and consider it America's golden moment.

BUSH: Yes.

QUESTION: I'm wondering, sir, if you agree with that assessment, and if so, why?

BUSH: I do, David, because I believe that as a result of the actions we have taken, we have begun to lay the foundation for a democratic movement that will outlast this administration, a democratic movement that'll bring peace to a troubled part of the world.

You probably suffered through this part of my speech on the campaign a lot when I talked about my relationship with Koizumi. And since you haven't heard it for a while, I thought I'd bring it up again.

I know. OK, Stretch, look, it's nice and warm, and it's a good chance for you to hear the story again.

(LAUGHTER) You know, I reminded people that because Japan is a democracy, Japan is now a great friend.

BUSH: We work together on big issues. And yet, it wasn't all that long ago that we were at war with Japan.

In other words, democracies have the capability of transforming nations. That's what history has told us.

And I have faith in the ability of democracy to transform nations. And that's why when I talked about Iraq earlier, that we've begun to lay the foundation for a democratic, peaceful Iraq.

Someday, an American president is going to be dealing with an elected Iraqi president, saying, you know, or a prime minister, saying, "What can we do together to bring peace to the region?" In other words, it's a platform for peace.

And yes, I agreed with the man. These are incredibly hopeful times, and very difficult times. And the problem is, is that I not only see the benefits of democracy, but so do the terrorists .

BUSH: And that's why they want to blow people up, indiscriminately kill in order to shake the will of the Iraqis or perhaps create a civil war or get us to withdraw early.

That's what they're trying to do, because they fear democracy. They understand what I understand, there's a kind of a meeting of minds on that.

And that's why the American people are seeing, you know, violent actions on their TV screens, because the killers want us to get out. They want the Iraqis to quit. They understand what a democracy can mean to their backward way of thinking.

BUSH: So I do agree with the man. I thought it was a pretty profound statement, and I was pleased to be able to share it with the folks there at Annapolis.

A couple more, then I got to hop.

Keith?

I guess, leave. That's not a very -- a couple more and then I have to retire -- as opposed to hopping.

QUESTION: Thank you very much, Mr. President.

Sir, most Democrats continue to refuse to negotiate with you on Social Security until you take payroll-tax-funded personal accounts off the table. Would you insist on these accounts if it means no deal on Social Security?

BUSH: We're just beginning the process. And I want to remind people who might be listening that this is not an easy issue for people in Washington, D.C., to discuss. BUSH: There's a lot of people calculating the political consequences of making a tough vote, you know? Or they remember the old campaigns of the past, where, if you even talk about Social Security, somebody will use your words to try to defeat you at the polls.

So this is a process here. And in that you love to follow the process, I will give you some insight into what I think is going to happen in the process.

It's like water cutting through a rock. It's just a matter of time. We're just going to keep working and working and working, reminding the American people that we have a serious problem and a great opportunity to act not as politicians, but as statesmen and - women to solve a problem.

BUSH: And so -- oh, I know, I've read about so and so, you know, "We're not going to talk about this, and we're going to throw down this marker." But in the meantime, the people are watching Washington, and nothing's happening, except you got a president who's willing to talk about the issue -- and a president who, by the way, is going to keep talking about the issue until we get people to the table.

I repeat to you, Keith, the Social Security issue is a really important issue for an upcoming generation. I mean, imagine realizing that we got a problem and then not doing anything about it and watching a young generation, you know, get taxed, perhaps by as much as a payroll tax of 18 percent.

BUSH: How would that make somebody feel? That we shirked our duty, that we weren't responsible citizens.

Secondly -- and we've been at this for a couple of months, you know, looking forward, and it takes a while in Washington, D.C. Now, I know people want things done tomorrow, or yesterday, and if they're not done, you know, they say, "Well, the thing has fallen apart."

Well, that's not the experience I've had in Washington, D.C. I can remember the tax debate, where things didn't happen quite as quickly as some liked, but nevertheless we got something done. I'm convinced we're going to get other things done here in Washington.

But the president's got to push. He's got to keep leading. And that's exactly what I'm going to do.

BUSH: And when we get something done, there'll be plenty of time to share the credit.

To me, this is an issue that is one in which people from both parties ought to take great pride in coming to the table to get something done.

One thing is for certain: The party that I represent is leading.

I mean, we're willing to take the lead and say, "Here's what we believe. Here's why we believe it" -- willing to take a message to the American people that is a positive message, one that says we recognize a problem, now let's work together to solve it.

And so I think as people make their calculations, I think the American people are going to end up saying to those who've been willing to lead on the issue and talk about the issue and be constructive on the issue, "Thanks for what you're doing, and we'll send you back up there with our vote, because that's the kind of spirit we like."

Listen, thank you all for coming out. Enjoyed it.

KAGAN: And with that, President Bush wrapped up his news conference. He's been going for almost an hour, about 50 minutes, getting to a number of topics. A number dealing with Congress. We'll get to Ed Henry on that in a moment. Also Barbara Starr at the Pentagon. But also he was talking about a report that came out earlier this week from Amnesty International, accusing Guantanamo Bay and the Naval station there of basically being a Gulag, and saying that the United States was a leading abuser of human rights.

Well, President Bush took that report on firsthand and had this to say about those allegations. Let's listen.

(BEGIN VIDEO CLIP)

BUSH: I'm aware of the Amnesty International report, and it's absurd; it's an absurd allegation. The United States is a country that is -- promotes freedom around the world. When there is accusations made about certain actions by our people, they're fully investigated in a transparent way, just an absurd allegation.

(END VIDEO CLIP)

KAGAN: President Bush also had a to-do list of sorts for Congress, which, by the way, is off this week for the Memorial Day holiday. That to-do list included working on an energy bill, cutting pork barrel projects, working on the Central American Free Trade Agreement, and also Social Security reform, not to mention John Bolton's nomination to be the next U.S. ambassador to the United Nations, and also judicial nominations.

For more on all of that, let's go to Capitol Hill and our Ed Henry -- Ed.

ED HENRY, CNN CORRESPONDENT: Good morning, Daryn.

That's right, the president covered a lot of ground, and I think you'd be summed up with the general idea that this is lame duck president, who is frustrated and has a very stern message for Congress, which is get to work. He said it very clearly at the end when he was talking about Social Security. A lot of people are assuming he cannot get Social Security reform done. He used the analogy of water cutting through Iraq, and that he is going to keep working and working until that water guests through. And the subtext here is if you think back to a press conference just like this right after the election, about seven months ago, it was a much different president, much more confident, was talking about spending political capital, and there was a lot of talk in this town about how the Republicans had an increased majority in the House and Senate and that maybe they were going to run roughshod over the Democrats. A lot of different distractions popped up. You mentioned the John Bolton nomination, Tom Delay ethic's struggles, also this fight over the nuclear option on judges, as well as general Republican nervousness on Capitol Hill about whether or not private accounts and Social Security really can work.

But the bottom line is that they are still pretty unpopular in a lot of national policies. So all of that has lead to the president's agenda being bogged down. You saw him frustrated, trying to prod Congress to get to work. He hit the Democrats pretty hard, in saying that he's tired of these filibusters, on the Bolton nomination, on some of his judges as well.

But the bottom line is there's also some frustration in this town among conservatives that the Republican leadership on the Hill is not pushing hard enough. There was a blistering editorial in the conservative "Wall Street Journal" on Friday, saying this Congress has been a disappointment -- Daryn.

KAGAN: Ed Henry on Capitol Hill. Thanks for listening in with us.

Also on our team today, Barbara Starr at the Pentagon. The president talking about Iraq, about North Korea, about Iran as well -- Barbara.

BARBARA STARR, CNN CORRESPONDENT: Well, Daryn, all of this comes as the situation in Iraq is at a critical crossroads, by all accounts. More than 600 Iraqis dead and wounded since the new government was formed last month. More than 130 car bombs over each of the last two months. So the question on the table, of course, is the insurgency in Iraq gaining in strength.

Now, the president saying that he believes the new Iraqi government will, in the future be up to the task of controlling the country. He says the insurgents fear democracy, and the insurgents are essentially, in his words, a group of frustrated and desperate people. This coming as Vice President Dick Cheney spoke to CNN's Larry King, giving his view about where he thinks the insurgency stands at this point.

(BEGIN VIDEO CLIP)

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: No. I think we may well have some kind of presence there over a period of time. I think the level of activity that we see today, from a military standpoint, I think will clearly decline. I think they're in the last throes, if you will, of the insurgency.

(END VIDEO CLIP) STARR: Now, whether they are indeed in the last throes of the insurgency perhaps still remains to be seen, but there is an operation, of course, going on right now, Operation Lightning in Baghdad, which the U.S. and the coalition forces hope will make a significant dent in the insurgency. The president spoke about the fact that there were 40,000 Iraqi security forces on the streets of Baghdad in that Operation Lightening, but U.S. military sources tell CNN, it still is a question as to whether there really are 40,000 Iraqi troops on the streets of Iraq. The latest assessment from the U.S. military, 13,000 to 20,000 Iraqi security forces really devoted to that operation now -- Daryn.

KAGAN: Barbara, there was also a question that came up in this news conference about delays in looking for American MIAs in North Korea. What can you tell us about that story.

A fascinating subject, Daryn. According to the president, Defense Secretary Donald Rumsfeld has now basically called for a pause in a program that has been going on for many years in which U.S. military personnel travel into North Korea, looking for the remains of U.S. service personnel, who were lost, who are miss anything action, since the Korean War.

This program has been growing in controversy, because the United States pays North Korea for the cost, transportation, setting up these field operations. It runs to several million dollars a year, and the U.S. military personnel who do that work, we have spoken to them recently, know that it was very controversial that they were going into North Korea, and that U.S. military funs were paying for this type of work, but they have had great success in recovering the remains of U.S. service personnel missing in North Korea for many years.

Now the president says Defense Secretary Rumsfeld is calling for a pause in that, and the reason the president says there is a pause, is so they can make sure that all of the security is appropriate. If those military personnel go into North Korea, they can always get out if a problem arises. So a very interesting issue developing there, Daryn.

KAGAN: Barbara Starr at the Pentagon. Barbara, thank you for listening in with us this morning. Appreciate that.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired May 31, 2005 - 10:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: United Airlines is engaged in 11th-hour talks with its largest union. About 20,000 ground workers are threatening to strike if the airline doesn't hammer out a contract agreement with machinists and aerospace workers. Union officials say they're encouraged, but if the deal falters, a bankruptcy judge could step in this afternoon and decide if the union contract can be broken.
Jurors in the Michael Jackson trial have the day off, but it will be a critical day for the attorneys. Prosecutors and Jackson's defense team will hammer out details of the all-important jury instructions. Closing arguments could get under way tomorrow.

And now to Florida, where police say two teenagers beat a homeless man to death for fun. The boys have been charged with murder. Investigators say the teens confessed to the crime, but one boy's family says it's all a mistake.

Paul Milliken of Central Florida News 13 has the story from Volusia County, Florida.

(BEGIN VIDEOTAPE)

PAUL MILLIKEN, REPORTER, CFN 13 (voice-over): Appearing in court for the first time, Jeffrey Spurgeon says just two words...

JEFFREY SPURGEON, DEFENDANT: Appoint one.

MILLIKEN: ... "Appoint one," asking for a public defender. The 18-year-old is accused of beating a homeless man to death in this wooded area near Holly Hill.

Investigators found the body Saturday. By Sunday, Spurgeon and a 14-year-old boy had been arrested.

VICKI SPURGEON, MOTHER: This is not something he would do.

MILLIKEN: Spurgeon's mother Vicki watched her son in court, convinced he's taking the blame for his friends.

V. SPURGEON: And my son will not tell. And he'll say that he did it all. He's did it before. He's took the blame several times for his friends.

MILLIKEN (on camera): Spurgeon's mother says she thinks several neighborhood teens were involved in the beating. And deputies have confirmed more arrests are possible. (voice-over): It was Spurgeon's mother who called authorities about the body, but she says it was not done to put her son behind bars.

V. SPURGEON: It was a rumor that there was a body, a homeless man laying in the woods on 13th and Nova (ph). So I called in an anonymous tip and said, "I heard this and I wanted to know if it was true."

UNIDENTIFIED MALE: Some of you may be released today...

MILLIKEN: Jeffrey Spurgeon is not released. He's being held in jail with no bond. To deputies, he's a confessed killer who says he beat a man for fun. To his parents, he's a boy who fell in with the wrong crowd.

In Volusia County, Paul Milliken, Central Florida News 13.

(END VIDEOTAPE)

O'BRIEN: The 14-year-old boy charged in the attack is being held in a juvenile-detention center. He family couldn't be reached for comment.

We have new details on Sunday's gruesome rampage in Bellefontaine, Ohio. Authorities there say on the very day that 18- year-old Scott Moody was set to graduate from high school, he apparently went to the home of his grandparents who had taken out this newspaper ad. Police say he shot them to death and then headed home. There, authorities say, he killed his mother, two teenaged friends, and wounded his sister, and then killed himself. Here is the 911 call that was placed by a stepsister of one of the victims.

(BEGIN VIDEO CLIP)

CALLER: Oh, my God! Oh, God! The son and the girlfriend are killed, too.

OPERATOR: What?

CALLER: I found the son, too, and his girlfriend.

OPERATOR: What's the matter?

CALLER: Oh, my God.

OPERATOR: What's going on, honey?

CALLER: The son and the girlfriend are beat up too.

OPERATOR: The son and the girlfriend? OK.

CALLER: (INAUDIBLE). I got to get off the phone.

OPERATOR: I need the address, honey.

CALLER: (INAUDIBLE) is the only one that's awake.

OPERATOR: There's only one awake?

CALLER: Yes.

OPERATOR: How many people have been beat up?

CALLER: Four. Four. There's five. There's another one. Oh, my God, there's one in the living room, too.

OPERATOR: Okay. What's going on right now, hon?

CALLER: She's telling me there's five dead. There's another one on the couch.

(END VIDEO CLIP)

KAGAN: The caller had been alerted by Moody's sister, who survived the rampage. Fifteen-year-old Stacy Moody is in critical condition.

We're still standing by. A news conference by President Bush set to begin in about 10 minutes. We'll take you live to the Rose Garden of the White House when it begins.

Right now, a quick break.

(COMMERCIAL BREAK)

KAGAN: Breaking news earlier today, the Arthur Andersen accounting firm catches a break at the U.S. Supreme Court, having a conviction in the Enron-related shredding case overturned, and a unanimous decision.

With more on that, Here' Allen Chernoff in New York City.

Hi, Allen.

ALLEN CHERNOFF, CNN CORRESPONDENT: That's right, Daryn, it was back in June of 2002, that Arthur Andersen, once a big-five accounting firm was convicted of tampering with witnesses by destroying documents related to its audits of Enron. The Supreme Court this morning has overturned that conviction unanimously in a 9-0 decision, and the court ruling that the jury instructions in the case were simply too broad, too vague. Chief Justice William Rehnquist writing, "The jury instructions here were flawed."

So this overturning that conviction, but in a sense, this decision is really moot, because the Arthur Andersen firm is no longer practicing. It is a tiny it is entity now, really just wrapping up legal issues, and this perhaps could help the firm just dealing with lawsuits that it has been confronting.

But as a result of the indictment against Arthur Andersen, the firm pretty much went out of business. Its name was tied not only to the Enron accounting scandal, but also to Tyco and other very big-name scandals, so Arthur Andersen certainly did have its name very much in the mud, so to say, with regard to accounting issues. And this was the final blow to the accounting firm. But, again, the Supreme Court now overturning that conviction -- Daryn.

KAGAN: All right, thanks for providing some context there. Allan Chernoff in New York City.

(STOCK MARKET REPORT)

KAGAN: Once again, standing by. About five minutes away from President Bush coming to the podium in the Rose Garden and the White House, a news conference. And we'll go there live when it begins. Right now we'll fit in a quick break.

(COMMERCIAL BREAK)

KAGAN: We're just about a minute away from President Bush beginning a news conference here. Congress out of town, a chance for the White House to have the stage to themselves.

And Bob Franken is standing by at the White House today to tell us a few of the topics that the president might be talking about. Hello.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Hello.

First of all, his I told you so, I promised you that each month I'd have a news conference, and here it is, May 31st. So he has made May. Of course, it also comes as a time when the president's poll numbers are beginning to slip just a little bit.

The latest CNN/"USA Today" poll shows his approval rating 46 percent, and it comes at time when some news organizations, including this one, have started to use the term "lame duck" just a little bit. And in clear effort by the administration to try and make sure that there isn't a loss of momentum. We're in a town where perception is reality.

The president is going to open his news conference with some statements, some statements that have to do with his view of a growing economy and his view that the Congress needs to act on his energy bill by the August recess and move forward on the budget bill and on the Central American Free Trade Agreement.

And of course he'll be talking about Social Security, which he talks about incessantly, although there's been something of a lack of traction in the minds of many in his efforts to sell the program that he is going to sell.

In any case, this, as I said, is the news conference that occurs in May. The last one he held was at the end of April. He's held 20 since he has been in office and this one comes on a beautiful day in Washington. Here's the president now.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Good day. Thank you. Please be seated. Hope you enjoyed your Memorial Day weekend. My message to Congress when they come back is this: that our economy is strong, but we need to work together to make sure that we continue to have a prosperous economy, so people can find jobs.

I say it's strong because we've added over 3.5 million new jobs over the last two years and the unemployment rate is 5.2 percent. More Americans are working today than ever before. Homeownership is an all-time high. Small businesses are flourishing. Families are taking home more of what they earn.

Obviously, these are hopeful signs. But Congress can make sure that the signs remain hopeful. Here are four good things they need to do.

First, they need to finish the work on an energy bill. We've gone more than a decade with an energy strategy.

BUSH: And as a result, we have grown more dependent on foreign sources of energy. And consumers see the consequences of that at the gas pump on a daily basis.

For the past four years, I've called on Congress to pass legislation that encourages energy conservation, that promotes domestic production in environmentally friendly ways, that helps diversify away from foreign oil, that modernizes the electricity grid.

It's got a substantial amount of research and development money to help us transition from a hydrocarbon economy to a diversified source of energy economy.

The House passed a bill and the Senate Energy Committee passed an energy bill this past week. I appreciate their good work.

Now they need to get the bill off the floor, into conference, resolve their differences and get me a bill before the August recess.

BUSH: That's what the American people expect and that's what I expect.

Secondly, Congress needs to be wise about the taxpayers' dollars.

I proposed a disciplined federal budget that holds discretionary spending growth below the rate of inflation, and reduces discretionary spending for non-security programs.

The House and the Senate have worked together to pass a responsible budget resolution that meets our priorities and keeps us on track to cut the deficit in half by 2009.

The weeks ahead will bring important decisions on spending bills and the weeks ahead will bring in efforts to rein in mandatory spending. We look forward to working with Congress to do just that.

Congress must keep its commitment to spending restraint if we want this economy to continue to grow. Third, Congress needs to ratify the Central American and Dominican Republic free trade agreement that's called CAFTA. This agreement is a good deal for American workers and farmers and small businesses.

BUSH: See, about 80 percent of the products from Central America and the Dominican Republic now enter the United States duty-free. Yet our exports to Central America and the Dominican Republic face hefty tariffs.

CAFTA will level the playing field by making about 80 percent of American exports to those countries duty-free.

I've always said I'm for free and fair trade. This makes our trade with the CAFTA countries fair. And that's important. After all, the CAFTA agreement will open a market of 44 million consumers to our producers, to our workers -- the products that our workers make, to our farmers.

We'll lower barriers in key sectors like textiles which will make American manufacturers more profitable and competitive in the global market and keep jobs here in America.

And it will support young democracies.

BUSH: And that's going to be important. There's a geopolitical, as well as economic, concern for CAFTA. And Congress needs to pass this piece of legislation.

And finally, Congress needs to move forward with Social Security reform. I'm going to continue traveling our country talking about Social Security reform. I'll remind our seniors who are getting a check today that nothing will change. And, yes, I'm going to continue to remind the people that we've got a serious problem for younger workers.

As part of Social Security reform, Congress should ensure that future generations receive benefits equal to or greater than the benefits today's seniors get. And Congress should help those who rely most on Social Security by increasing benefits faster for low-income workers than those workers who are better off.

And as we permanently solve the Social Security problem, we need to make Social Security a better deal for younger workers by allowing them to take some of their own money and invest it in a voluntary personal savings account.

BUSH: A voluntary personal savings account is very similar to the personal savings account members of Congress can do.

See, my attitude is if a personal savings account -- a voluntary personal savings account is good enough for a member of the United States Congress or a member of the United States Senate -- in other words, they felt that was a good enough deal for them so they could get a better rate of return, it surely seems like it's good enough for workers across the country. And so I look forward to working with the United States Congress on these priorities to help strengthen the long-term economic security of the country.

The American people expect people of both parties to work together. They look forward to the Congress setting aside partisan differences and getting something done, and so do I. I'm looking forward to that.

BUSH: So I look forward to welcoming the Congress back and working together with them.

And now I'll be glad to take some of your questions.

QUESTION: Mr. President, since Iraq's new government was announced on April 28th, more than 60 Americans and 760 Iraqis have been killed in attacks.

Do you think that the insurgency is gaining strength and becoming more lethal? And do you think Iraq's government is up to the job of defeating the insurgents and guaranteeing security?

BUSH: I think the Iraq government will be up to the task of defeating the insurgents. I think the Iraqi people dealt the insurgents a serious blow when they had the elections.

In other words, what the insurgents fear is democracy, because democracy is the opposite of their vision. Their vision is one where a few make the decision for many, and if you don't toe the line there's serious consequences.

BUSH: The American people just have got to think about the Taliban, if you're interested in understanding how the insurgents think. They support and ideology that is the opposite of freedom, in my judgment, and they're willing to use the terror tools necessary to impose their ideology.

And so what you're seeing is a group of frustrated and desperate people who kill innocent life. And, obviously, we mourn the loss of every life.

But I believe that the Iraqi government's going to be plenty capable of dealing with them, and our job is to help train them so that they can.

I was heartened to see the Iraqi government announce 40,000 Iraqi troops are well-trained enough to help secure Baghdad.

That was a very positive sign. It's a sign that they -- the Iraqi leaders -- understand they are responsible for their security, ultimately, and that our job is to help them take on that responsibility.

So I'm pleased with the progress. I am pleased that, in less than a year's time, there's a democratically elected government in Iraq, there are thousands of Iraqi soldiers trained and better equipped to fight for their own country, that our strategy is very clear and that we will work to get them ready to fight, and when they're ready, we'll come home.

BUSH: And I hope that's sooner rather than later.

But nevertheless, it's very important that we complete this mission because a free Iraq is in our nation's long-term interests. A democracy in the heart of the Middle East is an essential part of securing our country and promoting peace for the long run. It's very important for our country to understand that.

A free Iraq will set such a powerful example in a neighborhood that is desperate for freedom. And therefore, we will complete the mission and support this elected government.

BUSH: Of course, they've got other tasks. They've got to write a constitution, and then have that constitution ratified by the Iraqi people. And then there'll be another election. And we, of course, will help them, as will many countries around the world.

QUESTION: The former head of Russia's oil company Yukos was sentenced to nine years in prison camp today. Do you think the Kremlin went after him because he was a political threat? Are there any repercussions to U.S.-Russian relations as a result of this case?

BUSH: I expressed my concerns about the case to President Putin because, as I explained to him here, you're innocent until proven guilty, and it appeared to us -- at least people in my administration -- that it looked like he had been adjudged guilty prior to have a fair trial. In other words, he was put in prison and then was tried.

I think what'll be interesting -- and so we've expressed our concerns about the system.

What'll be interesting to see is whether or not he appeals -- I think we think he is going to appeal -- and then how the appeal will be handled.

BUSH: So we're watching the ongoing case.

QUESTION: I wonder if you could explain the administration's decision to allow Iran, in its negotiations with the Europeans, to get WTO status, ascension into the WTO; whether you think that deal, in a sense, has legs.

And also you talked about Iraq being a powerful symbol in that part of the world. One of the things you said going into the war was that it would deter other countries, rogue nations, from developing weapons of mass destruction. And when you think about North Korea and Iran, the opposite is true: They haven't been deterred at all. Why do you think that is?

BUSH: The first part of your question was about our agreement that Iran should apply for WTO.

BUSH: In other words, we said, "Fine, if you want to apply for WTO, go ahead and apply." And we did that to facilitate the E.U.-3 discussions with Iran.

I've always believed that, obviously, the best way to solve any difficult issue is through diplomacy. And in this case, France, Great Britain and Germany are handling the negotiations on behalf of the rest of the world, which is those nations which are deeply concerned about Iran having a nuclear weapon.

Now, our policy is very clear on that, and that is that the Iranians violated the NPT agreement, we found out they violated the agreement, and therefore they're not to be trusted when it comes to highly enriched uranium or highly enriching uranium.

BUSH: And therefore our policy is to prevent them from having the capacity to develop enriched uranium to the point where they're able to make a nuclear weapon.

Secondly -- and so therefore we're working with the E.U.-3 to hopefully convince the Iranians to abandon their pursuits of such a program.

BUSH: And it appears we're making some progress.

So our decision was to allow them to join the WTO -- or to apply to join the WTO -- which is not ascension to the WTO, it's just the right to make an application -- seemed like a reasonable decision to make in order to advance the negotiations with our European partners.

Secondly, in terms of North Korea, North Korea had a weapons program that they had concealed, as you might recall, prior to 2002 -- as a matter of fact, it was prior to 2000. It was a bilateral -- so- called bilateral agreement between North Korea and the United States and it turns out that they had violated that agreement because they were enriching uranium, contrary to the agreement.

BUSH: We caught them on that. And therefore I decided to change the policy to encourage other nations to be involved with convincing North Korea to abandon its weapons program. And that's where we are.

And it's important to have China at the table, for example, saying the same thing that the United States is saying, and that is that, "If you want to be a responsible nation get rid of your weapons programs." It's important to have Japan and South Korea and Russia saying the same thing.

We've got a lot of work to do with the North Korean because he tends to ignore what the other five nations are saying at times. But that doesn't mean we're going to stop, and can continue to press forward to making it clear that if he expects to be treated as a responsible nation that he needs to listen to the five nations involved.

QUESTION: But would you acknowledge that the war did not deter Iran and North Korea from what they're doing to pursue their programs?

BUSH: North Korea already had its weapons program before, as you know, as did Iran. And as I also told you, that we want diplomacy to work. And we want diplomacy to be given a chance to work, and that's exactly the position of the government. And hopefully it will work. I think it will.

QUESTION: A few moments ago you mentioned four economic priorities that Congress has to address to keep the economy, in your words, "going on the right track and getting stronger."

QUESTION: I noticed you didn't mention making permanent the tax cuts that had been passed during your first term. Was that an oversight, or do you think that sacrificing some of those tax cuts might ultimately be necessary to help balance the budget deficit?

BUSH: Actually, in my budget, as you know, the budget I submitted was one that encouraged permanency.

I believe it's essential that we have the tax cuts be permanent. It was implicit in my statement. I haven't changed. I appreciate your clarification.

Congress needs to make the tax cuts permanent.

QUESTION: Mr. President, you talked on your reelection about having political capital -- you have a Republican Congress. How, then, do you explain not being able to push through more of your agenda, especially when it comes to Social Security reform, which the public does not seem to be accepting and your own party is split on?

BUSH: First of all, I think the public does accept the fact that Social Security is a problem. You might remember, a couple months ago around this time, people were saying, "This is not a problem. What's he bringing it up for? Nobody sees it as a problem except for him."

And then, all of a sudden, people began to look at the facts and realized that, in 2017, Social Security, the pay-as-you-go system will be in the red, and in 2042 it's going to be bankrupt.

BUSH: And people then took a good hard look at the numbers and realized that Social Security is a problem. And that's the first step toward getting Congress to do something.

See, once they hear from the people we got a problem, the next question the people ask, What do you intend to do about it?

My second goal has been to convince and assure seniors that nobody is going to take away their checks.

As a veteran of American politics, I have withstood the onslaught that says, "When George W. talks about reforming Social Security, that means he's going to take away your check."

BUSH: Over the last four years seniors didn't have their checks taken away. So hopefully they're beginning to realize that some of this politics is ringing hollow. But it's very important for seniors to understand that when we talk about Social Security reform, that they're going to get their check, because there's a lot of people relying upon their Social Security checks.

Thirdly -- so we're just making progress. And this is just the beginning of a very difficult debate.

I recognize some in Congress wish I hadn't have brought the issue up. I mean, the easy path is to say, "Oh, we don't have a problem; let's ignore it yet again."

But I view my role as the president as somebody who puts problems on the table and then calls people together to solve them.

This is an issue that really hasn't had that much time in the halls of Congress -- hadn't been debated in the halls of Congress since 1983.

BUSH: And so I'm not surprised that there is a reluctance and I'm not surprised that there has been some initial push-back. But all that does is make me want to continue to travel and remind people that Congress has a duty to come up with some solutions.

They're beginning to have hearings in the Congress. The Ways and Means and the Finance Committee in the Senate are going to have hearings. There are some interesting ideas that have been proposed. We've proposed some interesting ideas.

One idea is make sure that low-income seniors get benefits such that, when they retire, they're not in poverty.

BUSH: We proposed a plan that takes the issue about solvency farther down the road than any other president's proposed.

In other words, we're putting ideas out.

And so, I look forward to working with Congress.

There is a duty to respond. There's a duty for people to bring forth their ideas. Now that people understand there's a problem, people have been elected to say, "OK, here's what I intend to do about it."

And we're doing our duty, and I expect people from both parties to do it as well.

Listen, I readily concede there's this attitude in Washington where we can't work together because one party may benefit and the other party may not benefit.

BUSH: The people don't like that. They don't like that attitude. They expect members of both parties to come together to solve problem.

And Social Security is a serious problem that requires bipartisan cooperation to solve the problem.

QUESTION: Mr. President, recently Amnesty International said you have established, quote, "a new gulag of prisons around the world beyond the reach of the law and decency."

I'd like your reaction to that, and also your assessment of how it came to this -- that that is a view not just held by extremists and anti-Americans, but by groups that have allied themselves with the United States government in the past, and what the strategic impact is that in many places in the world the United States these days under your leadership is no longer seen as the good guy.

BUSH: I'm aware of the Amnesty International report, and it's absurd. It's an absurd allegation.

The United States is a country that promotes freedom around the world. When there's accusations made about certain actions by our people, they're fully investigated in a transparent way.

It's just an absurd allegation.

In terms of, you know, the detainees, we've had thousands of people detained. We've investigated every single complaint against the detainees.

It seemed like to me they based some of their decisions on the word of and the allegations by people that were held in detention, people who hate America, people that have been trained in some instances to disassemble, that means not tell the truth.

BUSH: And so it was an absurd report. It just is.

QUESTION: Sir, you mentioned a moment ago a push back. And there's a perception that Congress has been pushing back recently.

My question is, do you worry that you might be losing a bit of momentum?

BUSH: Well, my attitude toward Congress will be reflected on whether or not they're capable of getting anything done.

We got a good budget out of Congress. And we got some legal reform out of Congress. We got Priscilla Owen confirmed in the Senate, which is a positive thing. Looks like we'll get a couple of more judges on the appellate bench confirmed.

BUSH: But I think the standard by which Congress should be judged is whether or not they can get an energy bill, and I think they will, and I look forward to working with them on an energy bill.

Obviously, I mentioned CAFTA. We've got to get CAFTA, which is a very important trade agreement. It'd be good for workers.

And I'm looking forward to working with them on Social Security. Those are big issues that require action.

Things don't happen instantly in Washington, D.C.

I know that part of your job is to follow the process and follow the politics, and who's up and who's down. But I've been around here long enough now to tell you, and tell the people listening, things just don't happen overnight.

BUSH: It takes a while.

And one thing is for certain, it takes a president willing to push people to do hard things. Because keep in mind, we haven't had an energy strategy in this country for over a decade, the Social Security hasn't been on the table since 1983 -- I mean, seriously on the table.

And so I'm asking Congress to do some difficult things. And I'm going to keep asking them to do some difficult things.

And I'm optimistic, when it's all said and done, that we will have come together and have helped solve some of these significant problems.

QUESTION: Are you worried, sir, that you're losing some of your push?

BUSH: I don't worry about anything here in Washington, D.C. I mean, I feel comfortable in my role as the president, and my role as the president is to push for reform.

The American people appreciate a president who sees a problem and is willing to put it on the table.

Listen, admittedly I could have taken the easy route and said, "Let's don't discuss Social Security till somebody else shows up in Washington." But that's not what the American people want from their president.

And we have a serious problem in Social Security. Athalia (ph) asked about the Social Security issue and I reminded her that the attitude is beginning to shift here in Washington. Because for a while, people here said, "There really wasn't a significant problem, and I wish he hadn't've brought it up."

And now people are beginning to see the realities of Social Security and the fact that we're about to pass on a huge burden to a young generation of Americans; a burden, by the way, which doesn't have to be passed on.

BUSH: We can permanently solve Social Security and should permanently solve it. And I've laid out some initiatives to get us on the way to permanently solving Social Security.

I look forward to the day of sitting down with Republicans and Democrats and congratulating both political parties on doing what's right for the American people; a day, by the way, the American people expect to come as well. QUESTION: Two questions about the consistency of the U.S. foreign policy that's built on the foundation of spreading democracy and ending tyranny.

QUESTION: One, how come you have not spoken out about the violent crackdown in Uzbekistan, which is a U.S. ally in the war on terror?

And why have you not spoken out in favor of the pro-democratic groups in Egypt that see the election process there unfolding in a way that is anything but democratic?

BUSH: Well, I thought I did the other day in terms of the Egyptians. I think you were traveling with Laura, maybe you just got back.

But I was asked about the Egyptian elections, and I said, "We expect for the Egyptian political process to be open and that for people to be given a chance to express themselves in an open way, in a free way. And we reject any violence toward those who express their dissension with the government."

BUSH: I'm pretty confident I said that with President Abbas standing here, maybe not quite as articulately as just then.

In terms of Uzbekistan, thanks for bringing it up. We've called for the International Red Cross to go into the Andijan region to determine what went on.

And, listen, we expect all our friends -- as well as those who aren't our friends -- to honor human rights and protect minority rights. That's part of a healthy and a peaceful world.

It will be a world in which governments do respect people's rights. And we want to know fully what took place there in Uzbekistan, and that's why we've asked the International Red Cross to go in.

QUESTION: On your nomination of Mr. Bolton to the United Nations, it is now, by most accounts, under a filibuster -- the Democrats refusing to invoke cloture last week.

I wonder if you could address their demands for ongoing documents in the case of Mr. Bolton's nomination, as well as what many Republicans have now criticized as a pervasive attitude of filibustering on behalf of the opposition on Capitol Hill.

BUSH: You know, I thought John Bolton was going to get an up-or- down vote on the Senate floor, just like he deserves an up-or-down vote on the Senate floor. And clearly he's got the votes to get confirmed.

And so I was disappointed that once again the leadership there in the Senate didn't give him an up-or-down vote.

And the reason it's important to have an up-or-down vote is because we need to get our ambassador to the United Nations to help start reforming that important organization.

BUSH: As I mentioned to you, I think, at the press conference in the East Room that the reason I picked Bolton is he's a no-nonsense kind of fellow who can get things done. And we need to get something done in the United Nations.

This is an organization which is important, it can help a lot in therms of the democracy movement. It can help deal with conflict and civil war. But it's an organization that is beginning to lose the trust of the American people, that hadn't already, and therefore we need to restore that trust.

We pay over $2 billion a year into the United Nations and it makes sense to have somebody there who is willing to say to the United Nations, "Why don't you reform? Let's make sure that the body works well and there's accountability and taxpayers' money is spent wisely."

BUSH: And it's important that people in America trust the United Nations, and Bolton will be able to carry that message.

Now, in terms of the request for documents, I view that as just another stall tactic, another way to delay, another way to not allow Bolton to get an up-or-down vote.

We've answered questions after questions after questions. Documents were sent to the Intelligence Committee. The Intelligence Committee reviewed the NSA intercept process and confirmed that, you know, Bolton did what was right.

So it's just a stalling tactic.

BUSH: And I would hope that when they get back that they stop stalling and give the man a vote, just give him a simple up-or-down vote.

QUESTION: What (inaudible) to do about this tactic in general, sir?

BUSH: Well, it's certainly been a tactic that's been used on judges and Bolton, if this is a filibuster -- I don't know what you call it.

I'm not sure they actually labeled it "filibuster." Thus far it's a stall. Stall headed toward filibuster, I guess.

All I know is, the man's not getting a vote. And it's taking a long time to get his vote. And he's been through hearings and questions and questionnaires. You know, it's pretty obvious to the American people and to me that you can tie up anything in the United States Senate if you want to.

BUSH: But it also ought to be clear that we need to get an ambassador to the United Nations as quickly as possible. So I hope he gets a vote soon.

QUESTION: Thank you, sir. Last week, you made clear that you don't think there's any such thing as a spare embryo.

Given that position, what is your view of fertility treatments that routinely create more embryos that never result in full-term pregnancies? And what do you believe should be done with those embryos that never do become pregnancies or result in the birth of a child?

BUSH: As you know, I also had an event here at the White House with little babies that had been born as a result of the embryos that had been frozen -- they're called snowflakes -- indicating there was an alternative to destruction of life.

BUSH: But the stem cell issue is really one of federal funding. That's the issue before us. And that is whether or not we use taxpayers' monies to destroy life in order to hopefully find cure for terrible disease. And I have made my position very clear on that issue, and that is, I don't believe we should.

Now, I made a decision a while ago that said there had been some existing stem cells and therefore it was OK to use federal funds on those because the life decision had already been made.

But from that point going forward I felt it was best to stand on principle, and that is, taxpayers' monies for the use of experimentation that would destroy life is a principle that violates something I -- I mean, is a position that violates a principle of mine.

BUSH: And I stand strong on that, to the point where I'll veto the bill as it now exists.

And having said that, it's important for the American people to know that there is some federal research going on on embryonic stem cells today. There's been over 600 experiments based upon the stem cell lines that existed prior to my decision. There's another 3,000 potential experiments they tell me that can go forward. There's a lot of research going on on adult stem cell research.

We got an ethics panel that has been -- that is in place that will help us hopefully develop ways to continue to figure out how to meet the demands of science and the need for ethics, so that we can help solve some of these diseases.

BUSH: And listen, I understand the folks that are deeply concerned for their child who might have juvenile diabetes. I know that the moms and dads across the country -- in agony about the fate of their child. And my message to them is is that there is research going on, and hopefully we'll find the cure, but at the same time, it's important in this society to balance ethics and science.

QUESTION: This morning, you reiterated diplomacy as the way to deal with North Korea.

QUESTION: With all due respect, some people say that's precisely the wrong approach, because diplomacy has produced nothing, while at the same time it has allowed North Korea to progress in its nuclear program.

What do you say to that?

BUSH: Well, let me see, if it's the wrong approach -- if diplomacy is the wrong approach, I guess that means military. That's the idea -- it's either diplomacy or military. And I am for the diplomacy approach.

And so for those who say that we ought to be using our military to solve the problem, I would say that while all options are on the table, we've got a ways to go to solve this diplomatically.

Now, I always get asked that: "How long are you going to this? How long is that going to happen? Why don't you give us a timetable?"

And I'm not giving timetables. I am going to say that we are in -- and it's very important for our partners to understand that I believe the six-party talks can and will work.

BUSH: We're constantly in touch with our Chinese counterparts.

Sometimes people move a little slower than American society and the world, and, you know, sometimes expectations around the world are maybe different from ours.

But fortunately, we've got everybody on the same page that says that the idea of North Korea having a nuclear weapon isn't good.

And by the way, that started with, as you know, you might recall the visit I had with Jiang Zemin (ph) in Crawford. And we came out of that visit with a common declaration that said it's in our interests that North Korea not have a nuclear weapon.

And that was a positive step forward because, once you get a country to commit to that goal, then it enables us to work together to achieve that goal in a peaceful way.

The other thing is, is that it's clear from the other five parties there -- the other four parties in our five-party coalition dealing with the sixth party, which is North Korea -- is that people do want to solve this issue diplomatically.

BUSH: And so it's a matter of continuing to send a message to Mr. Kim Jong Il that if you want to be accepted by the neighborhood and be a part of those who are viewed with respect in the world, work with us to get rid of your nuclear weapons program.

QUESTION: Mr. President, you often talk about a culture of life and also about your responsibility as president to lead.

Looking forward, what specific policy initiatives will you propose in the balance of your presidency to expand the culture of life? BUSH: Well, part of it is just to constantly remind people that we have a responsibility to the least of us in our society. Part of a cultural life is to continue to expand the Faith-Based and Community- Based Initiative to help people who hurt.

Part of it is to recognize that in a society that is as blessed as we are, that we have a responsibility to help others, such as AIDS victims on the continent of Africa or people who hunger in sub-Sahara, for example.

The culture of life is more than just, you know, an issue like embryonic stem cell. It's promoting a culture that is mindful, to help save lives through compassion.

BUSH: And my administration will continue to do so.

QUESTION: Mr. President, back to North Korea for a second. Why has the United States scraped the one link between our militaries when there has been no threat or harm to Americans participating in those missions to recover bodies of Americans killed in action during the Korean War there?

BUSH: The secretary of defense decided to take a -- what he's referring to is, is that -- I wouldn't call it scraped -- is that the verb you used, "scraped"?

I would use a different verb. I would use "reassess" the mission. See, scraped means that we're not going to do it ever again. I think that's what that means.

BUSH: And what the secretary of defense has said, "Let me just take a look and make sure that, as we send people into North Korea, that we're fully mindful of them being able to go in and get out." No immediate threat, just an assessment, is how I would put it.

But thank you for the question.

QUESTION: Can you talk a little bit about the process you're using to pick your next Supreme Court justice? And is that going to be affected at all by the agreement that was reached between the 14 Republicans and Democrats on judicial nominations?

BUSH: Well, that depends on whether or not the Senate will give my person an up-or-down vote.

Here's my process.

BUSH: One, I'm obviously going to spend a lot of time reviewing the records of a variety of people and looking at their opinions and their character and will consult with the members of the United States Senate at the appropriate time.

I know there's been a lot of talk about consultation between the White House and the Senate, and we do consult. Obviously, we consult on district judges. And that we listen to their opinions on appellate judges; "their opinions" being the opinions from the home state senators as well as others.

I look forward to talking to members of the Senate about the Supreme Court process, to get their opinions as well, and will do so. And will do so.

But, obviously, it's -- I told the American people I would find people of a certain temperament that would serve on the bench, and I intend to do that.

BUSH: But we will consult with the Senate.

And in terms of whether that agreement means that a senator's going to get an up-or-down vote, I guess it was vague enough for people to interpret the agreement the way they want to interpret it.

I'll put a best face on it and that is that since they're moving forward with Judge Owen, for example, and others, that "extraordinary circumstances" means just that: really extraordinary. I don't know what that means.

I guess we're about to find out when it comes to our appellate judges.

But I was pleased to see Priscilla Owen get an up-or-down vote. And she passed quite comfortably. She's a very good judge.

And then, of course, Pryor and Judge Brown will be coming up pretty soon, I hope.

BUSH: And I would hope they would get confirmed as well. They're good judges.

QUESTION: Good morning, Mr. President.

BUSH: Thank you for that. Thank you.

QUESTION: Thank you.

Back on May 11th, I believe was the date, as you were off campus for recreation, a small plane came into restricted air space. The alarm went off here at your house. A military operation ensued over Washington. Your staff says you were not notified because that was the protocol.

Two questions: Do you think you should have been notified? And is there something wrong with protocols that render the president unnecessary when there's a military operation over Washington?

BUSH: Obviously, we do have a protocol in place dealing with a situation that can unfold very rapidly.

These planes enter the air space quickly, and so there's got to be something in place that can be dealt with in an expeditious manner. And we have such a plan, and I'm comfortable with the plan.

And secondly, I was comfortable with the decision by the people around me there, out there in Maryland.

BUSH: Anytime a situation like this comes up, people are constantly reviewing the situation. But I was very comfortable with the decision they made.

QUESTION: Did you (OFF-MIKE) your wife?

(LAUGHTER)

BUSH: Herman, here's the way it is. She often disagrees with me.

Thank you very much, Herman, for that.

Go to the mike, Matt. We want you heard. We want you resonating around the country.

QUESTION: I appreciate that, Mr. President. Thank you.

My question is about China, which looms larger in the lives of Americans, sir. They finance an ever larger part of our trade deficit. Americans are concerned about China's growing economic might and of course about the oppression of human rights and religious minorities there.

QUESTION: My question, sir, is how should Americans think about China -- as an ally, a rival, a competitor, a friend?

BUSH: I think the relationship with China's a very complex relationship, and Americans ought to view it as such.

China is an emerging nation. It's an amazing story to watch here. It's consuming more and more natural resources. It is generating jobs and exporting a lot of goods. It's a massive market.

And so, on one hand, we ought to look at China as an economic opportunity. And the best way to deal with China is to say, "Look, there are some rules, and we expect you to abide by the trade rules."

And as she grows and as trade becomes more complex, you'll see more and more instances where the United States is insisting upon fair trade.

BUSH: We expect China to deal with the world trade in a fair way.

Now, in terms of security matters, obviously we just spent a lot of time talking about North Korea. China can be a very good partner in helping to secure the world.

The best way to convince Kim Jong Il to get up and give up his weapons is to have more than one voice saying the same thing. And therefore China is a partner in this case in terms of helping to secure that part of the world from nuclear weapons.

China, as well, can be helpful in the war on terror. BUSH: They're just as concerned as we are on the war on terror.

China is a -- obviously, there's tension about Taiwan that we have to deal with. And I made my position very clear and very consistent about Taiwan. The Taiwanese understand my position, the Chinese understand my position.

So in this case, the relationship is one of helping to solve that problems, is to keeping stability in the region so that eventually there'll be a peaceful solution to that issue.

And so China is a fascinating country that is significant in its size. Its economy is still small, but growing. But as well, I believe we have an obligation to remind the Chinese that any hopeful society is one in which there's more than just economic freedom, that there's religious freedom and freedom of the press.

BUSH: And so, in my meetings with the different Chinese leaders with whom I've had the honor of meeting, I've always brought up issues such as the Dalai Lama, or the Catholic Church's inability to get a bishop into the country, or the need for the country not to fear evangelicals, but to understand religious freedom leads to peace.

And so I'll continue doing that so long as I'm the president, and at the same time help deal with this very complex relationship.

Did you have your hand up?

QUESTION: I did, sir. Thank you very much, Mr. President.

At the Naval Academy last week, you spoke of a midshipman named Edward Slavis, who graduated and has served in Iraq, and you quoted him as saying that the mission will be a success and, 20 or 30 years from now, historians will look back on it and consider it America's golden moment.

BUSH: Yes.

QUESTION: I'm wondering, sir, if you agree with that assessment, and if so, why?

BUSH: I do, David, because I believe that as a result of the actions we have taken, we have begun to lay the foundation for a democratic movement that will outlast this administration, a democratic movement that'll bring peace to a troubled part of the world.

You probably suffered through this part of my speech on the campaign a lot when I talked about my relationship with Koizumi. And since you haven't heard it for a while, I thought I'd bring it up again.

I know. OK, Stretch, look, it's nice and warm, and it's a good chance for you to hear the story again.

(LAUGHTER) You know, I reminded people that because Japan is a democracy, Japan is now a great friend.

BUSH: We work together on big issues. And yet, it wasn't all that long ago that we were at war with Japan.

In other words, democracies have the capability of transforming nations. That's what history has told us.

And I have faith in the ability of democracy to transform nations. And that's why when I talked about Iraq earlier, that we've begun to lay the foundation for a democratic, peaceful Iraq.

Someday, an American president is going to be dealing with an elected Iraqi president, saying, you know, or a prime minister, saying, "What can we do together to bring peace to the region?" In other words, it's a platform for peace.

And yes, I agreed with the man. These are incredibly hopeful times, and very difficult times. And the problem is, is that I not only see the benefits of democracy, but so do the terrorists .

BUSH: And that's why they want to blow people up, indiscriminately kill in order to shake the will of the Iraqis or perhaps create a civil war or get us to withdraw early.

That's what they're trying to do, because they fear democracy. They understand what I understand, there's a kind of a meeting of minds on that.

And that's why the American people are seeing, you know, violent actions on their TV screens, because the killers want us to get out. They want the Iraqis to quit. They understand what a democracy can mean to their backward way of thinking.

BUSH: So I do agree with the man. I thought it was a pretty profound statement, and I was pleased to be able to share it with the folks there at Annapolis.

A couple more, then I got to hop.

Keith?

I guess, leave. That's not a very -- a couple more and then I have to retire -- as opposed to hopping.

QUESTION: Thank you very much, Mr. President.

Sir, most Democrats continue to refuse to negotiate with you on Social Security until you take payroll-tax-funded personal accounts off the table. Would you insist on these accounts if it means no deal on Social Security?

BUSH: We're just beginning the process. And I want to remind people who might be listening that this is not an easy issue for people in Washington, D.C., to discuss. BUSH: There's a lot of people calculating the political consequences of making a tough vote, you know? Or they remember the old campaigns of the past, where, if you even talk about Social Security, somebody will use your words to try to defeat you at the polls.

So this is a process here. And in that you love to follow the process, I will give you some insight into what I think is going to happen in the process.

It's like water cutting through a rock. It's just a matter of time. We're just going to keep working and working and working, reminding the American people that we have a serious problem and a great opportunity to act not as politicians, but as statesmen and - women to solve a problem.

BUSH: And so -- oh, I know, I've read about so and so, you know, "We're not going to talk about this, and we're going to throw down this marker." But in the meantime, the people are watching Washington, and nothing's happening, except you got a president who's willing to talk about the issue -- and a president who, by the way, is going to keep talking about the issue until we get people to the table.

I repeat to you, Keith, the Social Security issue is a really important issue for an upcoming generation. I mean, imagine realizing that we got a problem and then not doing anything about it and watching a young generation, you know, get taxed, perhaps by as much as a payroll tax of 18 percent.

BUSH: How would that make somebody feel? That we shirked our duty, that we weren't responsible citizens.

Secondly -- and we've been at this for a couple of months, you know, looking forward, and it takes a while in Washington, D.C. Now, I know people want things done tomorrow, or yesterday, and if they're not done, you know, they say, "Well, the thing has fallen apart."

Well, that's not the experience I've had in Washington, D.C. I can remember the tax debate, where things didn't happen quite as quickly as some liked, but nevertheless we got something done. I'm convinced we're going to get other things done here in Washington.

But the president's got to push. He's got to keep leading. And that's exactly what I'm going to do.

BUSH: And when we get something done, there'll be plenty of time to share the credit.

To me, this is an issue that is one in which people from both parties ought to take great pride in coming to the table to get something done.

One thing is for certain: The party that I represent is leading.

I mean, we're willing to take the lead and say, "Here's what we believe. Here's why we believe it" -- willing to take a message to the American people that is a positive message, one that says we recognize a problem, now let's work together to solve it.

And so I think as people make their calculations, I think the American people are going to end up saying to those who've been willing to lead on the issue and talk about the issue and be constructive on the issue, "Thanks for what you're doing, and we'll send you back up there with our vote, because that's the kind of spirit we like."

Listen, thank you all for coming out. Enjoyed it.

KAGAN: And with that, President Bush wrapped up his news conference. He's been going for almost an hour, about 50 minutes, getting to a number of topics. A number dealing with Congress. We'll get to Ed Henry on that in a moment. Also Barbara Starr at the Pentagon. But also he was talking about a report that came out earlier this week from Amnesty International, accusing Guantanamo Bay and the Naval station there of basically being a Gulag, and saying that the United States was a leading abuser of human rights.

Well, President Bush took that report on firsthand and had this to say about those allegations. Let's listen.

(BEGIN VIDEO CLIP)

BUSH: I'm aware of the Amnesty International report, and it's absurd; it's an absurd allegation. The United States is a country that is -- promotes freedom around the world. When there is accusations made about certain actions by our people, they're fully investigated in a transparent way, just an absurd allegation.

(END VIDEO CLIP)

KAGAN: President Bush also had a to-do list of sorts for Congress, which, by the way, is off this week for the Memorial Day holiday. That to-do list included working on an energy bill, cutting pork barrel projects, working on the Central American Free Trade Agreement, and also Social Security reform, not to mention John Bolton's nomination to be the next U.S. ambassador to the United Nations, and also judicial nominations.

For more on all of that, let's go to Capitol Hill and our Ed Henry -- Ed.

ED HENRY, CNN CORRESPONDENT: Good morning, Daryn.

That's right, the president covered a lot of ground, and I think you'd be summed up with the general idea that this is lame duck president, who is frustrated and has a very stern message for Congress, which is get to work. He said it very clearly at the end when he was talking about Social Security. A lot of people are assuming he cannot get Social Security reform done. He used the analogy of water cutting through Iraq, and that he is going to keep working and working until that water guests through. And the subtext here is if you think back to a press conference just like this right after the election, about seven months ago, it was a much different president, much more confident, was talking about spending political capital, and there was a lot of talk in this town about how the Republicans had an increased majority in the House and Senate and that maybe they were going to run roughshod over the Democrats. A lot of different distractions popped up. You mentioned the John Bolton nomination, Tom Delay ethic's struggles, also this fight over the nuclear option on judges, as well as general Republican nervousness on Capitol Hill about whether or not private accounts and Social Security really can work.

But the bottom line is that they are still pretty unpopular in a lot of national policies. So all of that has lead to the president's agenda being bogged down. You saw him frustrated, trying to prod Congress to get to work. He hit the Democrats pretty hard, in saying that he's tired of these filibusters, on the Bolton nomination, on some of his judges as well.

But the bottom line is there's also some frustration in this town among conservatives that the Republican leadership on the Hill is not pushing hard enough. There was a blistering editorial in the conservative "Wall Street Journal" on Friday, saying this Congress has been a disappointment -- Daryn.

KAGAN: Ed Henry on Capitol Hill. Thanks for listening in with us.

Also on our team today, Barbara Starr at the Pentagon. The president talking about Iraq, about North Korea, about Iran as well -- Barbara.

BARBARA STARR, CNN CORRESPONDENT: Well, Daryn, all of this comes as the situation in Iraq is at a critical crossroads, by all accounts. More than 600 Iraqis dead and wounded since the new government was formed last month. More than 130 car bombs over each of the last two months. So the question on the table, of course, is the insurgency in Iraq gaining in strength.

Now, the president saying that he believes the new Iraqi government will, in the future be up to the task of controlling the country. He says the insurgents fear democracy, and the insurgents are essentially, in his words, a group of frustrated and desperate people. This coming as Vice President Dick Cheney spoke to CNN's Larry King, giving his view about where he thinks the insurgency stands at this point.

(BEGIN VIDEO CLIP)

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: No. I think we may well have some kind of presence there over a period of time. I think the level of activity that we see today, from a military standpoint, I think will clearly decline. I think they're in the last throes, if you will, of the insurgency.

(END VIDEO CLIP) STARR: Now, whether they are indeed in the last throes of the insurgency perhaps still remains to be seen, but there is an operation, of course, going on right now, Operation Lightning in Baghdad, which the U.S. and the coalition forces hope will make a significant dent in the insurgency. The president spoke about the fact that there were 40,000 Iraqi security forces on the streets of Baghdad in that Operation Lightening, but U.S. military sources tell CNN, it still is a question as to whether there really are 40,000 Iraqi troops on the streets of Iraq. The latest assessment from the U.S. military, 13,000 to 20,000 Iraqi security forces really devoted to that operation now -- Daryn.

KAGAN: Barbara, there was also a question that came up in this news conference about delays in looking for American MIAs in North Korea. What can you tell us about that story.

A fascinating subject, Daryn. According to the president, Defense Secretary Donald Rumsfeld has now basically called for a pause in a program that has been going on for many years in which U.S. military personnel travel into North Korea, looking for the remains of U.S. service personnel, who were lost, who are miss anything action, since the Korean War.

This program has been growing in controversy, because the United States pays North Korea for the cost, transportation, setting up these field operations. It runs to several million dollars a year, and the U.S. military personnel who do that work, we have spoken to them recently, know that it was very controversial that they were going into North Korea, and that U.S. military funs were paying for this type of work, but they have had great success in recovering the remains of U.S. service personnel missing in North Korea for many years.

Now the president says Defense Secretary Rumsfeld is calling for a pause in that, and the reason the president says there is a pause, is so they can make sure that all of the security is appropriate. If those military personnel go into North Korea, they can always get out if a problem arises. So a very interesting issue developing there, Daryn.

KAGAN: Barbara Starr at the Pentagon. Barbara, thank you for listening in with us this morning. Appreciate that.

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