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CNN Live Today

Early Voting in Iraq; President Bush Delivers Third in Series of Iraq Speeches

Aired December 12, 2005 - 10:59   ET

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

DARYN KAGAN, CNN ANCHOR: Here's a look at headlines taking place right "Now in the News."
President Bush is on the road again today. He continues his campaign to boost support for the U.S. effort in Iraq. Mr. Bush is set to deliver a speech in about 15 minutes in Philadelphia. He's expected to focus on what he views as political progress in Iraq just three days before Iraq holds its historic elections. As always, CNN will bring you live coverage of the president's speech.

In Houston, Texas, the judge in the first federal lawsuit over the once popular painkiller Vioxx has declared a mistrial. The jury had deliberated over three days but failed to reach a verdict. The widow of a Florida man had sued the maker of the painkiller, Merck, claiming the drug had contributed to her husband's fatal heart attack.

The U.S. Supreme Court has agreed to review a Texas congressional map supported by Representative Tom DeLay. Critics say the map helped Republicans win 21 of the state's 32 seats in Congress during the last election. The Justice Department signed off on the plan even though staff lawyers said it diluted minority voting rights.

In California, convicted killer Stanley "Tookie" Williams is still fighting for his life, one day before his scheduled execution. The state Supreme Court has turned down an emergency request to stay the execution. Right now, Williams is still waiting on a decision by Governor Arnold Schwarzenegger on his request for clemency. Williams' case is also before a federal appeals court.

Crews are battling a fire at an industrial park in Santee, California. No word yet on which businesses are involved. There are reports of evacuations at a nearby mobile home park.

And a huge fire at a British fuel depot is still burning. The fire was sparked by a series of explosions yesterday at the complex north of London. Investigators say the blast, which injured several dozen people, appear to have been accidental, but they're not ruling anything out.

In the Middle East, a car bombing near Beirut has killed a prominent anti-Syrian journalist and lawmaker. The attack follows a series of bombings targeting people who oppose Syrian influence in the country.

Good morning. Welcome to the second hour of CNN LIVE TODAY. Checking the time around the world, just after 8:00 a.m. in Sacramento, California; just after 11:00 a.m. in Philadelphia and here in Atlanta; and it's just after 7:00 p.m. in Baghdad.

From CNN Center in Atlanta, I'm Daryn Kagan.

Up first this hour, President Bush's Iraq campaign. In a speech set to start minutes from now, Mr. Bush will focus on political progress in Iraq just days before historic elections. We will bring you Mr. Bush's speech as soon as it begins.

Also with us, Congressional Correspondent Ed Henry; Senior Political Correspondent Candy Crowley; and Chief National Correspondent John King are with me. And Chief International Correspondent Christiane Amanpour gives us the view from Baghdad.

We're going to begin in the Iraqi capital, where early voting in the country's parliamentary elections is already under way.

And once again, Chief International Correspondent Christiane Amanpour.

Christiane, hello.

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Daryn, hello.

Indeed, it did get under way today, but only for the military, and, in fact, some people who are sick, the infirm, if you like. The military went to the polls because it will be their role to protect the public when they cast ballots on Thursday.

Of course this is a crucial election, perhaps the most important yet in the transitional period that has led up to this moment, because this will be the first permanent post-Saddam, post-invasion government. And it's due to last four years. So what happens on December 15 and what kind of a government they get together after that will be very important.

Now, because the Sunni population, which makes up about 20 percent of Iraq, is vital into drawing them into the political process, all eyes are on them. Unlike in January, the last round of elections which they boycotted, unlike the referendum which they rejected, here they are going to turn out and they want to have a voice in parliament, say many Sunnis to us.

But the question is, obviously, will Sunni turnout mean de facto tamping down an end to the insurgency? People are not ready to say that yet. Many people are just hedging their bets, waiting to see exactly what the result is.

The sure fact is, though, that Sunnis of all stripes who we talked to say that if there is another religious, if you like, sectarian, as they call it here, government in power, such as the one that is in power right now, dominated by Islamists and others, that will exacerbate the political tensions here and cause the insurgency to go on. And no matter who you talk to, whether it be U.S. military, Iraqi military, people on the ground, they believe in any event that this insurgency still has a long way to go before it's tamped out.

People always talk now about a 10-year process -- Daryn.

KAGAN: And Christiane, I understand among those able to vote are people who are in custody who have not been convicted yet. That would mean Saddam Hussein. Any word on whether he plans to vote in this election?

AMANPOUR: Do you know we've been trying to find out. He is, as you say, eligible. He was -- the last round and, indeed, during the referendum, we are told he did not. We don't know whether he will this time.

KAGAN: Christiane Amanpour, live from Baghdad. We will be back with you after the speech.

As I was saying, this is the third of four speeches by President Bush in a campaign to bolster support for the Iraq mission. The backdrop: the birthplace of the U.S. Constitution, Philadelphia. It's also the home turf of a leading war critic.

Elaine Quijano continues our live coverage now from Philadelphia.

All right. We'll get to Elaine in just a moment.

First of all, let's welcome back in Candy Crowley and John King.

John, first to you. Let's talk about this backdrop of Philadelphia, but also we will hear later from John Murtha, one of the representatives from Pennsylvania.

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Well, Daryn, the president is giving the speech obviously to talk about what he will say is progress, slow progress, tough progress, some setbacks, but the president will make the case for progress in Iraq. And he's making it not only because of the elections this week in Iraq, but because of the political climate here at home.

Make no secret about it, the president knows he is struggling, knows the war is quite unpopular, know many question his policies. That is why you have, as you noted, this is the third of four speeches.

Why Philadelphia? It is a chance for the president as he talks about Iraq today and the state of its political climate. He wants to use Philadelphia to make a case he has made before, that we should have more patience, that at the beginning our democracy was far from perfect, that it had many setbacks along the way, and that it was a struggle and a constant struggle to decide what the rules should be, what the government should look like, how should voting take place.

Now, in Iraq, of course, it's a very different situation because you have long-standing ethnic rivalries, you have the insurgency under way, you have the continued U.S. troop presence. Many Iraqis call that an occupation.

So there are some comparisons to be made, not all of them apply. But the president trying again, Daryn, to make the case today for patience from the American people. And he needs very much so for the political climate here at home for the elections in Iraq this week to go well.

KAGAN: All right.

Candy, let's bring you in and talk about what the Democrats do with this third of four speeches.

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: Well, it's been interesting. I mean, they do in fact see these as a block of speeches.

Last week, even Democrats would tell you, the president at least had a better week than they did. And so what they are looking for now and what I think we should look for from Democrats is a lot of talk about the unity of Democrats.

They were hit pretty hard last week when Howard Dean came out and said he didn't think the war -- suggested the war wasn't winnable. Then they had Nancy Pelosi, the Democratic leader on the House side, signing up with the Murtha plan, which took a lot of -- caught a lot of people off balance.

So, there was a lot of talk last week about, that's all well and good, Democrats, to criticize the president, but you don't have a plan of your own. In fact, you're all split on this.

So I suspect that after last week, I know there's been talks between the leadership on both the Senate and House side, and the leading members about how they're going to approach this to keep a united front. So I think you'll hear the word "unity" or "United" quite a bit from Democrats.

KAGAN: And for more on that, let's go to Capitol Hill. Our congressional correspondent, Ed Henry, standing by, talking a little bit about John Murtha, also in Philadelphia today.

Is he not, Ed?

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: That's right. He's actually from Johnstown but in Pennsylvania, absolutely, nearby. We're going to hear from him again.

He's become almost a staple as the person responding to the president. But we're also going to hear from a Senate Democrat, Jack Reed, a veteran of the 82nd Airborne. He's somebody that Senate Democrats have also been putting out repeatedly, somebody with strong defense credentials.

But it also does highlight a little bit of the divide that Candy was just talking about, because, of course, John Murtha does have a plan for quick pullout of U.S. troops. Jack Reed does not endorse that, just as the Senate Democratic leader, Harry Reid, does not endorse it. And the Democrats are virtually all across the map on what to do next, from Nancy Pelosi to Howard Dean to Joe Lieberman, who is pretty much against just about everybody else in the Democratic Party.

What Democrats say on how they plan to be united, as Candy was referring to, is that they are united in believing that the president has mismanaged the war. And the Democrats are going to try, in their message, to try to do a better job in their own estimation of pointing out where they agree.

But, of course, they don't agree on what to do next. And that's why you're going to see different messages, different calibrations from John Murtha to Jack Reed. And I think also you're going to see Democrats pointing out that the Republicans are not exactly united.

Republican Chuck Hagel just came back from Iraq about a week and a half ago and had comments that were pretty similar to Howard Dean in saying we don't know what the outcome is going to be, whether we're going to win or lose.

So back to you, Daryn.

KAGAN: All right, Ed. Thank you for that.

Let's go to our Elaine Quijano. She is travelling with the president and she joins us live from Philadelphia -- Elaine.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Good morning to you, Daryn.

Well, as John was saying, one of the main goals here in Philadelphia is to use this as an example of the cradle of American democracy, of how messy, if you will, the process of establishing a democracy can be. And so while the president is here, he's expected to talk about how our founding fathers were faced with a number of challenges, just as the Iraqi people now are facing challenges, as well.

What are those challenges? Of course, security. Also, to form an inclusive government.

The president is expected to talk about the rule of law and establishing a culture of reconciliation. And then, finally, we expect the president to talk about how to maintain those newfound freedoms in a very difficult area in the Middle East.

Now, the main component, really, of the U.S. strategy that the president is expected to outline is to help the Iraqi people build inclusive institutions. And so that's something that we expect him to outline today, again, talking about the political milestones that the administration says have been achieved in Iraq, but also looking down the line at what may lie ahead for that country.

And again, talk about the rule of law in establishing a culture of reconciliation. And then finally, we expect the president to talk about how to maintain those newfound freedoms in a very difficult area in the Middle East.

Now, the main component, really, of the U.S.' strategy, the president is expected to outline, is to help the Iraqi people build inclusive institutions. And so that's something that we expect him to outline today. Again, talking about the political milestones that the administration says have been achieved in Iraq, but also looking down the line at what might lie ahead for that country.

And again, interesting to note, his audience for the second time in less than a week, not the usual military crowds that we are accustomed to seeing President Bush address, but this time, another group of foreign policy experts here in Philadelphia, members of the Philadelphia World Affairs Council -- Daryn.

KAGAN: Elaine, thank you.

John, let's bring you in. As Elaine was mentioning, it's been interesting to see the different audiences that the president does address. Last week it was the Council on Foreign Affairs.

Do you expect this to be the least, shall we say, receptive or friendly of all the audiences he's delivered so far?

KING: Oh, that's always a tough guess, Daryn. I think the Council on Foreign Relations was probably the least supportive.

If you went through that room last week, many, even -- it's an organization that says it's nonpartisan, but many people in that audience have written articles critical of the administration. Even the man who introduced the president to the Council on Foreign Relations, Richard Haas, served in the first Bush administration, served briefly in this administration as well. After leaving, he was somewhat critical of the administration's handling and planning and management of the war.

So I think that everyone is polite when the president speaks.

What makes this interesting is that we have, for the most part, predominantly, the president has given these speeches in a military setting. So to see him outside of that setting, once last week, now again today, is somewhat different for the president. And he's not speaking to the audience in the room, mind you, but he likes -- when he gets the cheering from the troops, it tends to lift his spirits.

So it is harder for him as a communicator to have the energy. Many of his own people would say he prefers that troop setting, he's much more comfortable.

KAGAN: Good point, that this probably isn't his intended audience. He's trying to talk to the American people.

Candy, it would appear that the series of speeches working somewhat, because the president's approval numbers are going up.

CROWLEY: Still anemic, but, yes, they are going up. They seem to have stopped the free fall. And I think when you -- in terms of audience and who is beyond the immediate audience, a lot of this was done at the urging of, at the pleading of, Republicans. This was really -- the president's problem was not that many Democrats were against him, because they've been against him on a number of things.

The president's problem was his own party was saying, when we go back home, we are being pounded at these town hall meetings. We need answers. You need to get out there.

So, the president's audience, if you want to get very, very specific, has been those Republicans and their constituents. After all, we do have an election year coming up. But they go home, they're about to go home on a long Christmas recess. They wanted something, if you will, to hang their hat on.

Give us something, tell us what's going on. People think we're beginning to lose.

So that's what this series of speeches was designed to help that Republican audience. Less about Democrats, who they assume will complain and will criticize, and more about bringing -- giving Republicans something to hold on to.

KAGAN: Is Ed Henry still with us? We don't have Ed.

OK. Let's talk to John King about this point, then.

In the last hour we saw President Bush arrive at Philadelphia International Airport, two senators by his side, Senator Arlen Specter and Senator Rick Santorum, the two senators from Pennsylvania. Senator Santorum in particular facing a tough time at home.

KING: Facing a very tough time. He's behind of the polls to Robert Casey, the son of the former governor of Pennsylvania.

Senator Santorum right now one of those Republicans who will be the litmus test, if you will, of this president's popularity next year. He is with the president today. He is a good party man. He's in the leadership on the Senate side. He's a good, loyal Republican. But he's with the president today.

Mr. Bush did not win Pennsylvania. He's not quite popular in the state right now. And Democrats are trying to make an issue. And you will see more and more of this.

Right now, the president was out last week raising some money. He's a good fund-raiser right now.

The question for Republicans, as 2005, very soon, turns into 2006, as Candy noted, can he move anemic up to mediocre and then perhaps build from there back to a position of some strength? And the president's success in doing that will go a long way in determining whether we see him back with Senator Santorum when we get into the middle of next year, when he's fighting for his political career. KAGAN: And in the two minutes that we're hearing that we have until the speech, Candy, I want to follow up on a point that you're making of the audience and the president is trying to talk to, and his base.

We are seeing -- as the president makes these speeches, he's talking about victory in Iraq. We heard him come out last week and talk about the economy. This sounds more like the President Bush before Katrina, trying to get back to basics and getting back on the message that he wants to be talking about.

CROWLEY: Well, absolutely. I mean, there's nothing like a horrific hurricane to take you way off course. And it was bungled, as you know. So it really has been a couple of months' slump for this administration.

In fact, last week was really the first decent week for the Bush administration that a number of people could remember since Katrina. Since, you remember, that we had the protest out at the Crawford ranch, Cindy Sheehan, the mother who lost a son in Iraq, who has been dogging Bush around the country. So we've had any number of things that really hit. It took him off stride.

One week does not a comeback make, but it certainly was better by Republican and Democratic assessment last week than it has been in a good long while.

KAGAN: And this is all leading up to the State of the Union Address that we will be hearing in the next month.

CROWLEY: Absolutely. And that is when they hope to really turn that corner and say, here's what the next three years are going to be about, and we're going to do this and do that. That's -- all of it is sort of building up to that. And this is trying to take Iraq away as a problem.

KAGAN: All right. Let's go live to Philadelphia. President Bush speaking on the war in Iraq.

Let's listen in.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you all. Thank you. Thanks for the warm welcome. Thank you for the chance to come and speak to the Philadelphia World Affairs Council. This is an important organization that, since 1949, has provided a forum for debate and discussion on important issues. I've come to discuss an issue that's really important, and that is victory in the war on terror. And that war started on September the 11th, 2001, when our nation awoke to a sudden attack.

Like generations before us, we have accepted new responsibilities. We're confronting dangers with new resolve. We're taking the fight to those who attacked us and to those who share their murderous vision for future attacks.

We will fight this war without wavering. And we'll prevail. The war on terror will take many turns, and the enemy must be defeated on every battlefield, from the streets of Western cities, to the mountains of Afghanistan, to the tribal regions of Pakistan, to the islands of Southeast Asia and to the Horn of Africa.

Yet the terrorists have made it clear that Iraq is the central front in their war against humanity.

BUSH: So we must recognize Iraq as the central front in the war on terror.

Last month, my administration released a document called "The National Strategy for Victory in Iraq," and in recent weeks I've been discussing our strategy with the American people.

At the U.S. Naval Academy, I spoke about our efforts to defeat the terrorists and train Iraqi security forces so they can provide safety for their own citizens.

Last week, before the Council on Foreign Relations, I explained how we are working with Iraqi forces and Iraqi leaders to help Iraqis improve security and restore order, to rebuild cities taken from the enemy and to help the national government revitalize Iraq's infrastructure and economy.

Today, I'm going to speak in depth about another vital element of our strategy: our efforts to help the Iraqi people build a lasting democracy in the heart of the Middle East.

I can think of no better place to discuss the rise of a free Iraq than in the heart of Philadelphia, the city where America's democracy was born.

BUSH: I want to thank Buntzie Churchill and Bill Sasso for letting me come.

And thank you all for welcoming me. I've got something to say. I'm looking forward to saying it here.

I'm traveling with United States senators. They are always quick to hop a ride on Air Force One...

(LAUGHTER)

... particularly when they don't have to reimburse the government.

(LAUGHTER)

But I'm proud to be a friend of Arlen Specter and Rick Santorum. They're fine, honorable members of the United States Senate.

(APPLAUSE)

I am also pleased that Jim Gerlach and Mike Fitzpatrick and Joe Pitts of the United States Congress are with us. Thanks for serving. Thanks for being here.

(APPLAUSE)

A few blocks from here stands Independence Hall, where our Declaration of Independence was signed and our Constitution was debated.

From the perspective of more than two centuries the success of America's democratic experiment seems almost inevitable. At the time, however, that success didn't seem so obvious or assured.

BUSH: The eight years from the end of the Revolutionary War to the election of a constitutional government were a time of disorder and upheaval.

There were uprisings, with mobs attacking courthouses and government buildings. There was a planned military coup that was defused only by the personal intervention of George Washington.

In 1783, Congress was chased from this city by angry veterans demanding back pay, and they stayed on the run for six months.

There were tensions between the mercantile North and the agricultural South that threatened to break apart our young republic.

And there were British loyalists who were opposed to independence and had to be reconciled with America's new democracy.

Our founders faced many difficult challenges, they made mistakes, they learned from their experiences and they adjusted their approach.

Our nation's first effort at a governing charter, the Articles of Confederation, failed. It took years of debate and compromise before we ratified our Constitution and inaugurated our first president.

BUSH: It took a four-year civil war and a century of struggle after that before the promise of our Declaration was extended to all Americans.

It is important to keep this history in mind as we look at the progress of freedom and democracy in Iraq.

No nation in history has made the transition to a free society without facing challenges, setbacks and false starts.

The past two and a half years have been a period of difficult struggle in Iraq, yet they have also been a time of great hope and achievement for the Iraqi people.

Just over two and a half years ago, Iraq was in the grip of a cruel dictator who had invaded his neighbors, sponsored terrorists, pursued and used weapons of mass destruction, murdered his own people and, for more than a decade, defied the demands of the United Nations and the civilized world. Since then, the Iraqi people have assumed sovereignty over their country, held free elections, drafted a democratic constitution and approved that constitution in a nationwide referendum.

BUSH: Three days from now they go to the polls for the third time this year and choose a new government under the new constitution.

It's a remarkable transformation for a country that has virtually no experience with democracy and which is struggling to overcome the legacy of one of the worst tyrannies the world has known.

And Iraqis achieved all this while determined enemies used violence and destruction to stop the progress.

There's still a lot of difficult work to be done in Iraq. But thanks to the courage of the Iraqi people, the year 2005 will be recorded as a turning point in the history of Iraq, the history of the Middle East and the history of freedom.

As the Iraqi people struggle to build their democracy, adversaries continue their war on a free Iraq. The enemy in Iraq is a combination of rejectionists and Saddamists and terrorists.

The rejectionists are ordinary Iraqis, mostly Sunni Arabs who miss the privileged status they had under the regime of Saddam Hussein. They reject an Iraq in which they're no longer the dominant group.

We believe that, over time, most of this group will be persuaded to support a democratic Iraq led by a federal government that is strong enough to protect minority rights. And we're encouraged that many Sunnis plan to actively participate in this week's election.

BUSH: The Saddamists are former regime loyalists who harbor dreams of returning to power, and they're trying to foment anti- democratic sentiment amongst the larger Sunni community. Yet they lack popular support and, over time, they can be marginalized and defeated by the people and security forces of a free Iraq.

The terrorists, affiliated with or inspired by Al Qaida, are the smallest, but most lethal, group. Many are foreigners, coming to fight freedom's progress in Iraq. They are led by a brutal terrorist named Zarqawi, Al Qaida's chief of operations in Iraq, who has stated his allegiance to Osama bin Laden.

The terrorists' stated objective is to drive U.S. and coalition forces out of Iraq and gain control of that country and then use Iraq as a base from which to launch attacks against America, overthrow moderate governments in the Middle East and establish a totalitarian Islamic empire that reaches from Spain to Indonesia.

The terrorists in Iraq share the ideology of the terrorists who struck the United States on September the 11th. They share the ideology with those who blew up commuters in London and Madrid, murdered tourists in Bali and killed workers in Riyadh and slaughtered guests at a wedding in Amman, Jordan. This is an enemy with conscience and they cannot be appeased.

BUSH: If we were not fighting and destroying this enemy in Iraq, they would not be leading quiet lives as good citizens. They would be plotting and killing our citizens across the world and here at home.

By fighting the terrorists in Iraq, we are confronting a direct threat to the American people. And we will accept nothing less than complete victory.

(APPLAUSE)

We are pursuing a comprehensive strategy in Iraq. Our goal is victory. And victory will be achieved when the terrorists and Saddamists can no longer threaten Iraq's democracy, when the Iraqi security forces can provide for the safety of their own citizens, and when Iraq is not a safe haven for terrorists to plot new attacks against our nation.

Our strategy in Iraq has three elements.

BUSH: On the economic side, we're helping the Iraqis restore their infrastructure, reform their economy and build the prosperity that will give all Iraqis a stake in a free and peaceful Iraq.

On the security side, coalition and Iraqi forces are on the offense against the enemy. We're working together to clear out areas controlled by the terrorists and Saddam loyalists, and leaving Iraqi forces to hold territory taken from the enemy.

And as we help Iraqis fight these enemies, we're working to build capable and effective Iraqi security forces so they can take the lead in the fight and eventually take responsibility for the safety and security of their citizens without major foreign assistance.

We're making steady progress. The Iraqi forces are becoming more and more capable. They're taking more responsibility for more and more territory. We're transferring bases to their control, so they can take the fight to the enemy.

And that means American and coalition forces can concentrate on training Iraqis and hunting down the high-value targets, like the terrorist Zarqawi and his associates.

BUSH: Today, I want to discuss the political element of our strategy: our efforts to help the Iraqis build inclusive democratic institutions that will protect the interests of all the Iraqi people.

By helping Iraqis to build a democracy, we will win over those who doubted they had a place in a new Iraq and undermine the terrorists and Saddamists.

By helping Iraqis to gain a democracy, we will gain an ally in the war on terror.

By helping Iraqis build a democracy, we will inspire reformers across the Middle East.

And by helping Iraqis build a democracy, we will bring hope to a troubled region. And this will make the American people more secure.

From the outset, the political element of our strategy in Iraq has been guided by a clear principle.

Democracy takes different forms in different cultures. Yet in all cultures, successful free societies are built on certain common foundations: rule of law, freedom of speech, freedom of assembly, a free economy and freedom to worship.

Respect for the belief of others is the only way to build a society where compassion and tolerance prevail.

BUSH: Societies that lay these foundations not only survive, but thrive. Societies that do not lay these foundations risk backsliding into tyranny.

When our coalition arrived in Iraq, we found a nation where almost none of these basic foundations existed. Decades of brutal rule by Saddam Hussein had destroyed the fabric of Iraqi civil society.

Under Saddam, Iraq was a country where dissent was crushed, a centralized economy enriched a dictator instead of the people, secret courts meted out repression instead of justice, and Shia Muslims and Kurds and other groups were brutally oppressed.

And when Saddam Hussein's regime fled Baghdad, they left behind a country with few civic institutions in place to hold Iraq society together.

To fill the vacuum after liberation, we established the Coalition Provisional Authority. The CPA was ably led by Ambassador Jerry Bremer, and many fine officials from our government volunteered to serve in the CPA.

While things did not always go as planned, these men and women did a good job under extremely difficult and dangerous circumstances, helping to restore basic services, making sure food was distributed and reestablishing government ministries.

BUSH: One of the CPA's most important tasks was bringing the Iraqi people into the decision-making process of their government after decades of tyrannical rule.

Three months after liberation, our coalition worked with the United Nations and Iraqi leaders to establish an Iraqi Governing Council. The governing council gave Iraqis a voice in their own affairs, but it was unelected, and it was subordinate to the CPA and, therefore, did not satisfy the hunger of Iraqis for self-government.

Like free people everywhere, Iraqis wanted to be governed by leaders they had elected, not foreign officials. So in the summer of 2003, we proposed a plan to transfer sovereignty to the Iraqi people. Under this plan, the CPA would continue to govern Iraq, while appointed Iraqi leaders drafted a constitution, put that constitution before the people and then held elections to choose a new government.

BUSH: Only when that elected government took office would the Iraqis regain their sovereignty.

This plan met with the disapproval of the Iraqis. They made it clear that they wanted a constitution that was written by elected leaders of a free Iraq, and they wanted sovereignty placed in Iraqi hands sooner. We listened and we adjusted our approach.

In November of 2003, we negotiated a new plan with the governing council, with steps for an accelerated transition to Iraqi self- government.

Under this new plan, a Transitional Administrative Law was written by the governing council and adopted in March of 2004. This law guaranteed personal freedoms unprecedented in the Arab world and set forth four major milestones to guide Iraq's transition to a constitutional democracy.

The first milestone was the transfer of sovereignty to an Iraqi interim government by the end of June 2004.

The second was for Iraqis to hold free elections to choose a transitional government by January of 2005.

The third was for Iraqis to adopt a democratic constitution which would be drafted no later than August 2005 and put before the Iraqi people in a nationwide referendum no later than October.

BUSH: The fourth was for Iraqis to choose a government under that democratic constitution, with election held December of 2005.

The first milestone was met when our coalition handed over sovereignty to the Iraqi leaders on June 28, 2004, two days ahead of schedule.

In January 2005, Iraqis met the second milestone when they went to the polls and chose their leaders in free elections. Almost 8.5 million Iraqis defied the car bombers and assassins to cast their ballots. And the world watched in awe as jubilant Iraqis danced in the street and held ink-stained fingers and celebrated their freedom.

The January elections were a watershed event for Iraq and the Middle East, yet they were not without flaws.

One problem was the failure of the vast majority of Sunni Arabs to vote. When Sunnis saw a new 275-member parliament taking power in which they had only 16 seats, many realized that their failure to participate in the democratic process had hurt their chances and hurt their groups and hurt their constituencies.

And Shia and Kurdish leaders who had won power at the polls saw that for a free and unified Iraq to succeed, they needed Sunni Arabs to be part of the government.

BUSH: We encouraged Iraq's leaders to reach out to Sunni leaders and bring them into the governing process.

When the transitional government was seated in the spring of this year, Sunni Arabs filled important posts, including a vice president, a minister of defense and the speaker of the national assembly.

The new government's next political challenge was to meet the third milestone, which is adopting a democratic constitution.

Again, Iraq's leaders reached out to Sunni Arabs who had boycotted the elections and included them in the drafting process. Fifteen Sunni Arab negotiators and several Sunni Arab advisers joined the work of the constitutional drafting committee.

After much tough debate, representatives of Iraq's diverse communities drafted a bold constitution that guarantees the rule of law, freedom of assembly, property rights, freedom of speech and the press, women's rights and the right to vote.

As one Arab scholar put it, "The Iraqi constitution marks the dawn of a new age in Arab life."

BUSH: The document that initially emerged from the committee did not unify Iraqis. And many Sunnis on the constitutional committee did not support the draft. Yet Iraq's leaders continued working to gain Sunni support.

And thanks to last-minute changes, including a new procedure for considering amendments to the constitution next year, a deal was struck four days before the Iraqis went to the polls.

The revised constitution was endorsed by Iraq's largest Sunni party. It was approved in referendum that attracted over a million more voters than in the January elections.

Many Sunnis voted against the constitution, but Sunnis voted in large numbers for the first time. They joined the political process and by doing so they reject the violence of the Saddamists and rejectionists.

Through hard work and compromise, Iraqis adopted the most progressive, democratic constitution in the Arab world.

On Thursday, Iraqis will meet their fourth milestone. And when they do go to the polls and choose a new government under the new constitution, it'll be a remarkable event in the Arab world.

Despite terrorist violence, the country is buzzing with signs and sounds of democracy in action.

BUSH: The streets of Baghdad and Najaf and Mosul and other cities are full of signs and posters. The television and radio airwaves are thick with political ads and commentary. Hundreds of parties and coalitions have registered for this week's elections and they're campaigning vigorously. Candidates are holding rallies and laying out their agendas and asking for the vote.

Our troops see this young democracy up close. First Lieutenant Frank Shirley (ph) of Rock Hall, Maryland, says, "It's a cool thing riding around Baghdad and seeing the posters. It reminds me of being home during election time. After so many years of being told what to do, having a real vote is different."

Unlike the January elections, many Sunnis are campaigning vigorously for office this time around. Many Sunni parties that opposed the constitution have registered to compete in this week's vote. Two major Sunni coalitions have formed and other Sunni leaders have joined national coalitions that cross religious, ethnic and sectarian boundaries.

As one Sunni politician put it, "This election is a vote for Iraq. We want a national Iraq, not a sectarian one."

BUSH: To encourage broader participation by all Iraqi communities, the national assembly made important changes in Iraq's electoral laws that will increase Sunni representation in the new assembly.

In the January elections, Iraq was one giant electoral district, so seats in the transitional assembly simply reflected turnout. Because few Sunnis voted, their communities were left with little representation.

Now Iraq has a new electoral system where seats in the new council of representatives will be allocated by province and population, much like our own House of Representatives.

This new system is encouraging more Sunnis to join in the democratic process, because it ensures that Sunnis will be well- represented even if the terrorists and Saddamists try to intimidate voters in the provinces where most Sunnis live.

More Sunnis are involved because they see Iraqi democracy succeeding. They have learned a lesson of democracy: They must participate to have a voice in their nation's affairs.

A leading Sunni who had boycotted the January vote put it this way: "The Sunnis are now ready to participate."

A Sunni sheik explains why Sunnis must join the process: "In order not to be marginalized, we need power in the national assembly."

BUSH: As more Sunnis join the political process, the Saddamists and remaining rejectionists will be marginalized. As more Sunnis join the political process, they will protect the interests of their community.

Like the Shia and Kurds who face daily attacks from the terrorists and Saddamists, many Sunnis who join the political process are being targeted by the enemies of a free Iraq.

The Iraqi Islamic Party, a Sunni party that boycotted the January vote and now supports elections, has seen its offices bombed. And a party leader reports that at least 10 members have been killed since the party announced it would field candidates in Thursday's elections.

Recently a top Sunni electoral official visited the Sunni stronghold of Baquba. He went to encourage local leaders to participate in the elections. During his visit a roadside bomb went off, rattled his convoy, but it didn't stop it.

He says this about the attempt on his life: "The bomb is nothing compared to what we're doing. What we're doing is bigger than the bomb."

By pressing forward and meeting their milestones, the Iraqi people have built momentum for freedom and democracy.

BUSH: They've encouraged those outside the process to come in.

At every stage, there was enormous pressure to let the deadlines slide, with skeptics and pessimists declaring that Iraqis were not ready for self-government.

At every stage, Iraqis proved the skeptics and pessimists wrong. At every stage, Iraqis have exposed the errors of those in our country and across the world who questioned the universal appeal of liberty.

By meeting their milestones, Iraqis are defeating a brutal enemy, rejecting a murderous ideology and choosing freedom over terror.

This week elections won't be perfect, and a successful vote is not the end of the process. Iraqis still have more difficult work ahead and our coalition and the new Iraqi government will face many challenges, including in four critical areas: ensuring Iraqi security, forming an inclusive Iraqi government, encouraging Iraqi reconciliation and maintaining Iraqi democracy in a tough neighborhood.

The first key challenge is security. As democracy takes hold in Iraq, the terrorists and Saddamists will continue to use violence.

BUSH: They will try to break our will and intimidate the Iraqi people and their leaders.

These enemies aren't going to give up because of a successful election. They understand what is at stake in Iraq.

They know that as democracy takes root in that country, their hateful ideology will suffer a devastating blow and the Middle East will have a clear example of freedom and prosperity and hope.

So our coalition will continue to hunt down the terrorists and Saddamists, will continue training Iraqi security forces to take the lead in the fight and defend their new democracy.

As the Iraqi security forces stand up, coalition forces can stand down. And when victory is achieved, our troops will then return home with the honor they have earned. The second key challenge is forming an inclusive government that protects the interests of all Iraqis and encourages more in the rejectionist camp to abandon violence and embrace politics.

Early next year, Iraq's new parliament will come to Baghdad and select a prime minister and a presidency council and a cabinet of ministers. Two-thirds of the new parliament must agree on the top leadership posts. And this will demand negotiation and compromise. It will require patience by America and our coalition allies.

This new government will face many tough decisions on issues such as security and reconstruction and economic reform.

Iraqi leaders will also have to review and possibly amend the constitution and ensure that this historic document earns the broad support of all Iraqi communities.

By taking these steps, Iraqi leaders will build a strong and lasting democracy. It's an important step in helping to defeat the terrorists and the Saddamists.

The third key challenge is establishing rule of law and the culture of reconciliation. Iraqis still have to overcome longstanding ethnic and religious tensions and the legacy of three decades of dictatorship.

BUSH: During the regime of Saddam Hussein, Shia, Kurds and other groups were brutally oppressed. And for some there is now a temptation to take justice into their own hands.

Recently, U.S. and Iraqi troops have discovered prisons in Iraq where mostly Sunni men were held, some of whom have appeared to have been beaten and tortured.

This conduct is unacceptable and the prime minister and other Iraqi officials have condemned these abuses. An investigation has been launched.

And we support these efforts. Those who committed these crimes must be held to account.

We will continue helping Iraqis build an impartial system of justice that protects all of Iraq's citizens.

Millions of Iraqis are seeing their independent judiciary in action as their former dictator, Saddam Hussein, is put on trial in Baghdad. The man who once struck fear in the hearts of Iraqis has heard his victims recount the acts of torture and murder that he ordered.

One Iraqi watching the proceeding said, "We all feel happiness about this fair trial."

BUSH: Slowly but surely, with the help of our coalition, Iraqis are replacing the rule of tyrant with the rule of law and ensuring equal justice for all their citizens. No, I know some fear the possibility that Iraq could break apart and fall into a civil war. I don't believe these fears are justified. They're not justified so long as we do not abandon the Iraqi people in their hour of need.

Encouraging reconciliation and human rights in a society scarred by decades of arbitrary violence and sectarian division is not going to be easy and it's not going to happen overnight.

Yet the Iraqi government has a process in place to resolve even the most difficult issues through negotiate, debate and compromise. And the United States, along with the United Nations and the Arab League and other international partners, will support these efforts to help resolve these issues.

And as Iraqis continue to develop the habits of liberty, they will gain confidence in the future and ensure that Iraqi nationalism trumps Iraqi sectarianism.

A fourth key challenge is for the Iraqis to maintain their newfound freedoms in a tough neighborhood. Iraq's neighbor to the east, Iran, is actively working to undermine a free Iraq.

BUSH: Iran doesn't want democracy in Iraq to succeed because a free Iraq threatens the legitimacy of Iran's oppressive theocracy.

Iraq's neighbor to the west, Syria, is permitting terrorists to use that territory to cross into Iraq.

The vast majority of Iraqis do not want to live under an Iranian- style theocracy and they don't want Syria to allow the transit of bombers and killers into Iraq. And the United States of America will stand with the Iraqi people against the threats from these neighbors.

(APPLAUSE)

We'll continue to encourage greater support from the Arab world and the broader international community. Many Arab states have kept the new Iraq at arm's distance. Yet as more Arab states are beginning to recognize that a free Iraq is here to stay, they're starting to give Iraq's new government more support.

BUSH: Recently, Saudi Arabia, Egypt and Jordan have welcomed the Iraqi prime minister on official visits. Last month, the Arab League hosted a meeting in Cairo to promote national reconciliation among Iraqis, and another such meeting is planned for next year in Baghdad.

These are important steps, and Iraq's neighbors need to do more.

Arab leaders are beginning to recognize that the choice in Iraq is between democracy and terrorism, and there is no middle ground. The success of Iraqi democracy is in their vital interests because if the terrorists prevail in Iraq, they will then target other Arab nations.

International support for Iraq's democracy is growing as well. Other nations have pledged more than $13 billion in assistance to Iraq, and we call on them, those who have pledged assistance, to make good on their commitments.

The World Bank recently approved its first loan to Iraq in over 30 years, lending the Iraqi government $100 million to improve the Iraqi school system.

The United Nations is playing a vital role in Iraq. They assisted in last January's elections, in the negotiations for the constitution and in the recent constitutional referendum. And at the request of the Iraqi government, the U.N. Security Council unanimously approved a resolution extending the mandate of the multinational force in Iraq through 2006.

BUSH: Earlier this year, the European Union co-hosted a conference for more than 80 countries and international organizations so they can better coordinate their efforts to help Iraqis rebuild their nation.

Whatever differences there were over the decision to liberate Iraq, all free nations now share a common interest: building an Iraq that will fight terror and be a source of stability and freedom in a troubled region of the world.

The challenges ahead are complex and difficult. Yet Iraqis are determined to overcome them and build a free nation. And they require our support.

Millions of Iraqis will put their lives on the line this Thursday in the name of liberty and democracy. And 160,000 of America's finest are putting their lives on the line so Iraqis can succeed.

The American and Iraqi people share the same interests and the same enemies. And by helping democracy succeed in Iraq, we bring greater security to our citizens here at home.

The terrorists know that democracy is their enemy. And they will continue fighting freedom's progress with all the hateful determination they can muster.

Yet the Iraqi people are stepping forward to claim their liberty. And they will have it.

BUSH: When the new Iraqi government takes office next year, Iraqis will have the only constitutional democracy in the Arab world, and Americans will have a partner for peace and moderation in the Middle East.

People across the broader Middle East are drawing and will continue to draw inspiration from Iraq's progress. And the terrorists' powerful myth is being destroyed.

In a 1998 fatwa, Osama bin Laden argued that the suffering of the Iraqi people was justification for his declaration of war on America. Now bin Laden and Al Qaida are the direct cause of the Iraqi people's suffering.

As more Muslims across the world see this, they're turning against the terrorists. As the hope of liberty spreads in the Middle East, the terrorists will lose their sponsors, lose their recruits and lose the sanctuaries they need to plan new attacks.

A free Iraq's not going to be a quiet Iraq. It'll be a nation full of passionate debate and vigorous political activity. It'll be a nation that continues to face some level of violence.

Yet Iraqis are showing they have the patience and the courage to make democracy work. And Americans have the patience and courage to help them succeed.

We've done this kind of work before. We must have confidence in our cause.

In World War II, free nations defeated fascism and helped our former adversaries, Germany and Japan, build strong democracies. And today these nations are allies in securing the peace.

BUSH: In the Cold War, free nations defeated communism and helped our former Warsaw Pact adversaries become strong democracies. And today nations of Central and Eastern Europe are allies in the war on terror.

Today in the Middle East, freedom is once again contending with a totalitarian ideology that seeks to sow anger and hatred and despair. And like fascism and communism before, the hateful ideologies that use terror will be defeated by the unstoppable power of freedom.

(APPLAUSE)

And the advance of freedom in the Middle East requires freedom in Iraq. By helping Iraqis build a lasting democracy, we will spread the hope of liberty across a troubled region. We'll gain new allies in the cause of freedom.

By helping Iraqis build a strong democracy, we're adding to our own security. And like a generation before us, we're laying the foundation of peace for generations to come.

BUSH: Not far from here, where we gather today, is a symbol of freedom familiar to all Americans: the Liberty Bell. When the Declaration of Independence was first read in public, the Liberty Bell was sounded in celebration and a witness said, "It rang as if it meant something."

Today the call of liberty is being heard in Baghdad, in Basra and other Iraqi cities, and its sound is echoing across the broader Middle East. From Damascus to Tehran, people hear it and they know it means something. It means that the days of tyranny and terror are ending and a new day of hope and freedom is dawning.

Thank you for letting me come.

(APPLAUSE)

Thank you. Sit down, please. BUSH: I've got a little extra time on my hands, so I thought I might answer some questions.

QUESTION: Since the inception of the Iraq war, I'd like to know the approximate total of the Iraqis who have been killed. And by Iraqis, I include civilians, military, police, insurgents, translators...

BUSH: How many Iraqi citizens have died in this war? I would say 30,000, more or less, have died as a result of the initial incursion and the ongoing violence against Iraqis.

We've lost about 2,140 of our own troops in Iraq.

QUESTION: (OFF-MIKE)

BUSH: I'll repeat the question. If I don't like it, I'll make it up.

(LAUGHTER)

(APPLAUSE)

QUESTION: Central to your policy in Iraq is the role of the Iraqis.

QUESTION: And we hear wildly different tales about how the Iraqis are doing in their own area of defense.

Could you give us your perspective on how they're doing, how well their military training is going, what your view of their capability is to do the tasks that you want them to do, and clear up some of the wildly different impressions that we hear about?

BUSH: No, I appreciate that.

When we first began training -- our strategy all along has been to train Iraqis so they could take the fight, and succeed in what we're trying to do, which is a democracy: a democracy which will serve as an example for others, a democracy which will join us in the fight on terror, a democracy which will help us prevent other countries from becoming safe haven for terrorists who still want to kill us. That was our objective. And all along, we wanted the Iraqis to be able to take the fight.

When we first go going, we said, "We'll train an army that will be able to deal with external threats and a civil defense corps that will be able to deal with internal threats."

And the problem with that strategy was that the internal threats were a heck of a lot more severe than the external threats and the civilian corps we trained was not properly trained and equipped.

So we adjusted. We trained everybody for the army, recognizing that the army is going to have to not only take the fight to the enemy -- or the new army, take the fight to the enemy, but when we clear enemies out of places like Mosul, that there has to be an Iraqi army presence to earn the confidence of the people.

When the war first got going, we'd move into Mosul, clear out an enemy, leave and the enemy would return. And so the Iraqi people had no confidence in the future.

BUSH: They didn't dare, for example, tell coalition forces or Iraqi forces the names of those who were killing their citizens because they didn't have the confidence that there would be a force to protect them.

And so we began the process of clearing out and holding with more and more trained Iraqi forces, and now the Iraqi forces are helping to rebuild these cities.

Democracy's only going to succeed if people say, "My life is going to be better." I mean, it's no different than a campaign here, you know, "Vote for me. I want to help improve your life."

And that's what -- and so the strategy has been to -- let me just say, we adjusted our strategy. And there's about 200,000-plus capable units.

Now, not all of them are ready to take the fight to the enemy. In order to have a division or a battalion ready to fight, you got to be able to communicate, you got to be able to move, you got to be able to have logistical supplies. But more and more the Iraqis are in the lead in the fight, and more and more Iraqis are being trained so they can hold the positions once we clear.

We haven't completed the job of training the Iraqis. But what is beginning to happen is, is that you're beginning to see our troops step back from the fight.

I don't know if you realized, we had some 90 bases in Iraq.

BUSH: And I think we've closed about 40 -- or turned over; closed or turned over 40 of those bases to the Iraqis.

In other words, our profile is beginning to move back as the Iraqis get trained up, so that we can continue working on training and also help them chase down Zarqawi and his buddies.

These guys are very tough and they're cold-blooded killers. The enemy's got one weapon. See, they can't defeat us militarily. What they can do is that they can and will kill innocent people in the hopes of trying to get the United States of America to leave the battlefield early.

The only way we can lose is if we lose our nerve. And they know that. And they've stated that publicly.

But the training is going much better than it was in the first year. And we've just got more to do and we need to do it, because a free Iraq, again, will be an important ally in this war.

This is a global struggle we're in. This isn't an enemy that is isolated: kind of, an angry group of people.

These are people that have got a totalitarian vision. They've got designs and ambitions. They've laid our their strategy and they explained their tactics. And we've got to listen to them and take them seriously.

And part of their tactics is to create vacuums so that their hateful ideology flows in.

Listen, the attack of September the 11th was a part of a broad strategy to get us to retreat from the world.

BUSH: And people say, "He's making it up, that they want to want to establish a totalitarian empire that stretches from Spain to Indonesia." I'm telling you what they said, not me. This is what Zawahiri has said, the number two man in Al Qaida.

It seems like, to me, we need to take it seriously when the enemy says something.

Kind of getting off subject here.

QUESTION: Mr. President, I'm a proud U.S. citizen, naturalized, and a card-carrying Republican. I voted for you both times.

(LAUGHTER)

I grew up in India, a Sunni. In fact, the president of the Republic of India is a Sunni. And I think it's a great testimony to this nation, the vision of which was laid out within a half a mile of here, that somebody like me can be in a position of leadership and be successfully engaged in contributing to the current and future economic well-being of this nation.

Mr. President, I support your efforts in Iraq, but I'd like to know, what are we going to do in the broader battle in creating a favorable image and reaching out to people across the world, so that people like me all over the world can be passionate supporters of the United States?

BUSH: I appreciate that.

First of all, success will help the image of the United States.

Look, I recognize we got an image issue, particularly when you got Arabic television stations that are constantly just pounding America, you know, saying, "America is fighting Islam. Americans can't stand Muslims. This is a war against a religion."

BUSH: And we've got to, obviously, do a better job of reminding people that ours is not a nation that rejects religion; ours is a nation that accepts people of all faith, and that the great strength of America is the capacity for people to worship freely.

It's difficult. I mean, their propaganda machine is pretty darn intense. And so we're constantly sending out messages. We're constantly trying to reassure people. But we're also acting.

And that's what's important for our citizens to realize. Our position in the world is such that I don't think we can retreat. I think we have a duty and an obligation to use our vast influence to help.

I cite two examples of where I think American image in the Muslim world will be improved.

One is the tsunami. When the tsunamis hit, it was the United States military, through the USS Abraham Lincoln, that provided the logistical organization necessary to save a lot of lives.

We moved. A lot of people, kind of, sat around and discussed; not us. We saw a problem and we moved.

BUSH: Same in Pakistan. The earthquake in Pakistan is devastating. The United States of America was first on the scene. Got a lot of kids flying choppers all around that country providing help and aid.

And so I guess what I'm saying to you is that a proper use of influence that helps improve people's lives is the best way to change the image of our country and to defeat the propaganda.

Having said all that, a lot of people want to come to America. You know, the image may be bad, but given a change, "All of you who want to come to America raise your hand," there's a lot wanting to come. That's another issue, which is immigration reform.

But thank you for that.

Once thing America must never do is lose our capacity to take people from all walks of life and help them become an American first and foremost. That's what distinguishes us from other cultures and other nations. You can come from wherever you are and I can come from Texas, and we both share the same deal: We're Americans first and foremost.

I happen to be a Methodist, you're a Sunni.

(LAUGHTER)

QUESTION: Mr. President, I would like to know why it is that you and others in your administration keep linking 9/11 to the invasion of Iraq when no respected journalists or Middle Eastern expert confirmed that such a link existed.

(APPLAUSE)

BUSH: What did she -- I missed the question. Sorry.

I beg your pardon. I didn't hear you. Seriously.

QUESTION: I would like to know why you and others in your administration invoke 9/11 as justification for the invasion of Iraq when no respected journalists or other Middle Eastern experts confirm that such a link existed.

BUSH: Oh, I appreciate that.

9/11 changed my look on foreign policy. I mean, it said that oceans no longer protect us; that we can't take threats for granted; that if we see a threat, we've got to deal with it. It doesn't have to be militarily necessarily but we got to deal with it. We can't just hope for the best anymore.

So the first decision I made, as you know, was to deal with the Taliban in Afghanistan because they were harboring terrorists. This is where the terrorists plan and plotted.

And the second decision -- which was a very difficult decision for me, by the way, and it's one that I didn't take lightly -- was that Saddam Hussein was a threat. He is a declared enemy of the United States. He had used weapons of mass destruction. The entire world thought he had weapons of mass destruction. The United Nations had declared in more than 10 -- I can't remember the exact number of resolutions -- that disclose or disarm or face serious consequences.

BUSH: I mean, there was a serious international effort to say to Saddam Hussein: "You're a threat." And the 9/11 attacks accentuated that threat, as far as I'm concerned.

And so we gave Saddam Hussein the chance to disclose or disarm. And he refused.

And I made a tough decision. And knowing what I know today, I'd make the decision again. Removing Saddam Hussein makes this world a better place and America a safer country.

(APPLAUSE)

Last question. I've actually got something to do. You're paying me all this money; I'd better get back to work.

(LAUGHTER)

QUESTION: Mr. President, I'm a supporter of yours.

BUSH: Oops, that, kind of, prejudices your question.

(LAUGHTER)

QUESTION: Well, I have a question for you. Do you feel that since invading Iraq, the threat of terrorism on U.S. soil has been reduced significantly?

BUSH: I think it's been reduced. I don't think we're safe.

What'll really give me confidence to say that we're safe is when I can tell the American people we've got the capacity to know exactly where the enemy is moving.

In other words, this is a different kind of war. These people hide. They're patient and they're sophisticated. And that's why our intelligence-gathering is really important.

BUSH: You know, occasionally they come out and want to fight like they're doing in Iraq.

This guy Zarqawi has sworn his allegiance to bin Laden. He's declared his intentions.

But there's a lot of them who lurk and hide. And what we've really got to do is continue to hone our intelligence-gathering to make sure that we can, as best as possible, understand their intents and watch their movements.

This requires international cooperation. I will tell you, the international cooperation when it comes to sharing intelligence is good.

It requires us being able to cut off their money. They move money around. It turns out they can't launch attacks without money. And so we're doing the best we can to work with others to find out where their money's moving, and that way it'll give us a chance to find out where they are.

The long run in this war is going to require a change of governments in parts of the world. And this is why it's very important for me to continue to remind the American people about what's taken place in history.

One of my favorite stories is to tell people about -- or go by is to tell people about my relationship with Koizumi -- Prime Minister Koizumi of Japan. He's an interesting guy. He likes Elvis, for example, which is interesting.

(LAUGHTER)

BUSH: And he had a friend. He's also a friend when it comes to peace. He's a reliable, steady ally when it comes to dealing with North Korea.

North Korea is a country that has declared boldly they've got nuclear weapons. They counterfeit our money. And they're starving their people to death.

And it's good to have an ally that understands human rights and the condition of the human being are vital for this world and world peace.

And yet 60 years ago, my dad fought against the Japanese. Many of your relatives did as well. They were the sworn enemy of the United States.

I find it amazing. I don't know if you find it amazing. I find it amazing that I sit down with this guy, strategizing about how to make the world a more peaceful place when my dad and others fought them.

And so what happened? Now, 60 years seems like along time, particularly if you're 59 like me.

(LAUGHTER)

But it's not all that long in history, when you think about it. And what happened was, a Japanese-style democracy emerged.

Democracies yield the peace. That's what history has shown us.

BUSH: That's why I tried to say in my peroration in this speech. That's a long word. I'm doing it for Senator Specter.

(LAUGHTER)

Just showing off, Senator. Just trying to look good in front of the folks here at home.

(LAUGHTER)

But it's an accurate portrayal of what has happened. Democracy healed the peace.

So the fundamental question is, do we have the confidence and universal values to help change a troubled part of the world?

If you're a supporter of Israel, I would strongly urge you to help other countries become democracies. Israel's long-term survival depends upon the spread of democracy in the Middle East.

(APPLAUSE)

I fully recognize that some say, "It's impossible; maybe only a certain kind of people can accept democracy." I reject that. I don't agree with that.

I believe the desire to be free is universal. That's what I believe. And if you believe that, then you got to act on it.

That doesn't mean militarily. But that means using the influence of the United States to work with others to help freedom spread.

BUSH: And that's what you're seeing in Iraq.

And it's hard. It's hard for a country that has come from dictatorship two and a half years ago to become a democracy. It is hard work.

There's a lot of resentment and anger and bitterness. But I believe it's going to happen.

And the only way it won't happen is if we leave, if we lose our nerve, if we allow the terrorists to achieve their objective.

The only way we can lose this is for us to say to the terrorists: "Maybe you aren't dangerous, after all. You know, by leaving, oh, maybe that you'll become hospitable, you know, decent citizens of the world." That's not reality.

And my job as the president is to see the world the way it is, not the way we hope it is.

(APPLAUSE)

I again want to thank you for giving me the chance to come and deliver this speech. I'm grateful for your interests.

May God bless you all and may God continue to bless America.

(APPLAUSE)

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