National and World News EXTRA

President Bush Participates in Video Teleconference with President Karzai of Afghanistan

PRESIDENT BUSH: President, welcome. I'm pleased to be joined by President Karzai and members of his government, as we've just had a discussion with our fellow citizens, represented here on the screen. We had a real-time SVTS with PRT members in Kunar and Nangarhar provinces in Afghanistan -- plus the governors, the Afghan governors.

My reaction to our conversation is, one, there was promise and progress. No question it's difficult. But if you listen to the people who are actually on the ground working with the citizens of Afghanistan on matters such as agriculture, or education, or infrastructure, you'll understand why I said that there is progress and promise -- and hope.

And so I want to thank my fellow citizens, Mr. President, in your presence, for their sacrifice and service. Three of the PRT members are here -- provincial reconstruction teams. This is a central part of the counterinsurgency strategy, which combines economic development, education, infrastructure with security, all aiming to help this young democracy not only survive, but to thrive, so that it never becomes a safe haven for those would do us harm again.

I've had a grand experience in dealing with President Karzai. He and I have known each other for a long time. We -- I can remember when I was informed that our special forces rescued President Karzai during the liberation of Afghanistan. He was stuck out there wondering whether he was going to make it --

PRESIDENT KARZAI: Top of the mountain.

PRESIDENT BUSH: We sent some good troops in and pulled him out. And he has served his country then, and he's served his country now as the President. And I admire your leadership and your determination to succeed. And I want to welcome you here. I want to let you know that the United States is committed to the people of Afghanistan. We will stand by your side, and do the hard work necessary to achieve our objective. And our objective is for you to become a thriving democracy, and to deny al Qaeda and other extremists a safe haven or a base from which to launch their murderous attacks.

Welcome.

PRESIDENT KARZAI: Thank you, President. Mr. President, thank you very much for seeing me and my delegation once again so graciously, and tremendous hospitality, as always, in the White House.

Mr. President, my trip this time to Washington, as I insisted to be here with you, is for one reason alone, and that is to thank you and, through you, the American people for all that you have done for Afghanistan. You can't imagine here in Washington, especially at the White House, how much difference you have made to the lives of the Afghan people by your personal commitment to Afghanistan, by your commitment for the betterment of Afghan life, for the security of the Afghan people, the democracy of the Afghan people, for education and health, and all that we discussed earlier with the PRTs and the Afghan governors.

At times in this, the span of seven years, we have come across issues that gives us a feeling as if things were slowing down. That is not the impression that we have in Afghanistan. Afghanistan has made progress that we would have not been able to make in 50 years or 60 years -- what you have done in the past six or seven years. We have rebuilt in four years more than 3,000 parsecs of our roads. We have millions of children. We have more than 85,000 of our babies, infants, and children now saved each year. Infant mortality is down. Health care from 9 percent to 85 percent. National reserves -- from $180 million to $3.5 billion today -- over $3 billion today.

Life is better. Of course we have challenges, and the challenges will continue to face us as we move ahead. The success is already there, the picture will be completed. You will be leaving office, Mr. President, together with the Vice President, in a few months from today, but I would like you to remember as you leave office that Afghanistan will remember you tremendously, in a nice way, with affection, and you are there in our memory, in a golden place. Come and visit us so we can show it to you in a manner that we do traditionally in Afghanistan.

It's an honor to have associated with you, to have had your friendship, and to have had your support, and to have had your patience with me -- (laughter.) Very, very nice of you. I've yelled at times, I've been angry at times, but you've always been smiling and generous, and just so nice.

PRESIDENT BUSH: Thank you, sir.

PRESIDENT KARZAI: Thank you very much.

PRESIDENT BUSH: Thank you, all.

President Bush Meets with President Talabani of Iraq

Mr. President, welcome. First of all, I am so pleased to see that you're looking good. The President's health is strong, and that's going to be very important for the people of Iraq. After all, there's been no stronger defender of a free Iraq than President Talabani. I've known him for a long time. He cares deeply about the Iraqi people, and he has been a strong defender of human liberty.

Mr. President, thanks for the good conversation we had about the election laws, about the need to get a strategic framework agreement signed. And thank you very much for bringing me up to date on your perspective about life inside of Iraq. It's -- things have changed a lot since we've known each other.

PRESIDENT TALABANI: Of course.

PRESIDENT BUSH: And attitudes are completely different now that people realize the security situation has changed and mothers can raise their children in a more normal life. It's still difficult, but there's no doubt that the surge has been effective, which has enabled us to take out troops. Iraqis want there to be fewer U.S. troops, the United States wants there to be fewer U.S. troops, but both of us want to realize that vision based upon success.

And so, Mr. President, welcome back. I'm glad you're feeling good. And thank you for the visit.

PRESIDENT TALABANI: Well, Mr. President, thank you very much for giving me the honor of meeting you again. I think it's clear that we are in Iraq looking to you as a hero of liberation of Iraq from worst kind of dictatorship. And now we are working with your -- with you, Mr. President, for finalizing the strategic framework agreement between United States and Iraq.

And also, we are always getting benefit from your views about how to secure Iraq. I think you know very well that you and we in Iraq achieved very good successes on terrorism. Now I can say all parts of Iraq liberated from terrorist control and activities. It's true that some groups remain hiding themselves from here or there, but there's no place, no inch of Iraqi land under the control of terrorist activities. There are some terrorist -- still groups working -- hiding themself, and thanks to you and sacrifice of your brave army and to Iraqi people, now we can live in peace and security.

And Iraq government started to spend the money which we have for serving the Iraqi people and rebuilding the country, reconstructing the country. Not only we liberated our country from terrorist activities, but also from militias, outlawed militias who are also making troubles and danger for Iraqi people.

And as you have heard, the Basra city, Sadr City, (inaudible), Ninawa, Baqubah -- all these cities are now liberated. So we are thankful to you and to your people, your army. We hope that the agreement about this strategy formation will be signed soon.

And as usual, we are working, our parliament is working now for finalizing the draft of a new law for election provinces, and I hope that, as I heard the news yesterday, I hope that today it will be finalized, because the groups -- head of groups of parliament are now gathering in parliament to reach -- to finalize this.

In our country, we are now busy to reconstruct our country and to rebuild our country. And I am glad to tell you, Mr. President, that our position with our neighbors is improved very well -- with Turkey, with Syria, with Iran, with the Arab countries. The relation is notable now and we have no problem with any of these countries. In contrary, many, many new ambassadors are coming --

PRESIDENT BUSH: That's right.

PRESIDENT TALABANI: -- to our country from Arab countries. And our visit of Prime Minister of Turkey, Mr. Tayyip Recep Erdogan, and of the -- His Majesty, the King of Jordan, to Baghdad were very successful, and was encouraging to Iraqi people to understand that they have friends outside Iraq.

So I hope that friendship and relation between your great people and the Iraqi people will continue and will be strengthened. And we will never forget what you have done for our people.

PRESIDENT BUSH: Thank you, President.

Sarah Palin Slams Barack Obama in VP Acceptance Speech at RNC

Atlanta, GA 9/04/2008 02:39 PM GMT (TransWorldNews - Top Story)

Sarah Palin slammed Barack Obama during her acceptance speech at the Republican National Convention on Wednesday.

Palin began quickly as she accepted the VP nomination for the Republican Party early into her RNC speech.

Palin, the governor of Alaska, said that Obama was a good speaker, but was very inexperienced. "But listening to him speak, it's easy to forget that this is a man who has authored two memoirs but not a single major law or reform - not even in the state senate," said Palin.

"But when the cloud of rhetoric has passed, when the roar of the crowd fades away, when the stadium lights go out, and those Styrofoam Greek columns are hauled back to some studio lot - what exactly is our opponent's plan?" asked Palin.

Palin spoke to the RNC about her time as mayor of her hometown of Wasilla, Alaska. She addressed the naysayers who say that she lacks experience, comparing hers to Obama's. "I guess a small-town mayor is sort of like a 'community organizer,' except that you have actual responsibilities," said Palin. 

"I might add that in small towns, we don't quite know what to make of a candidate who lavishes praise on working people when they are listening, and then talks about how bitterly they cling to their religion and guns when those people aren't listening," said Palin.

Palin, a self-titled hockey mom, also showed her sense of humor and toughness during her speech. As she addressed several supporters with signs that said "Hockey Moms for McCain" and "Hockey Moms for Palin", she asked them what was the difference between a hockey mom and a pitbull.

"Lipstick," replied Palin to the cheers of the RNC audience.

For the video of Sarah Palin's RNC acceptance speech, please go to YourFindit Videos. Click here for full transcript of Sarah Palin's RNC acceptance speech.

Sarah Palin, Vice Presidential Nominee to Address the 2008 Republican National Convention

This evening Alaska Gov. Sarah Palin, the Republican Party's vice presidential nominee, will address the 2008 Republican National Convention. Excerpts from the governor's remarks, as prepared for delivery, are below.

On her experience as a public servant:

"I had the privilege of living most of my life in a small town. I was just your average hockey mom, and signed up for the PTA because I wanted to make my kids’ public education better. When I ran for city council, I didn’t need focus groups and voter profiles because I knew those voters, and knew their families, too. Before I became governor of the great state of Alaska, I was mayor of my hometown. And since our opponents in this presidential election seem to look down on that experience, let me explain to them what the job involves. I guess a small-town mayor is sort of like a ‘community organizer,’ except that you have actual responsibilities."

On why she is going to Washington, D.C.:

"I’m not a member of the permanent political establishment. And I’ve learned quickly, these past few days, that if you’re not a member in good standing of the Washington elite, then some in the media consider a candidate unqualified for that reason alone. But here’s a little news flash for all those reporters and commentators: I’m not going to Washington to seek their good opinion - I’m going to Washington to serve the people of this country."

On energy policies that the McCain-Palin administration will implement:

"Our opponents say, again and again, that drilling will not solve all of America’s energy problems - as if we all didn’t know that already. But the fact that drilling won’t solve every problem is no excuse to do nothing at all. Starting in January, in a McCain-Palin administration, we’re going to lay more pipelines...build more nuclear plants...create jobs with clean coal...and move forward on solar, wind, geothermal, and other alternative sources. We need American energy resources, brought to you by American ingenuity, and produced by American workers."

On John McCain:

"Here’s how I look at the choice Americans face in this election. In politics, there are some candidates who use change to promote their careers. And then there are those, like John McCain, who use their careers to promote change."

President Bush Participates in Briefing at Emergency Operations Center

THE PRESIDENT: I'm going to make a quick statement. Then I want to come around and say thank you in person to you.

First of all, Governor, thanks for having me down here. Phase one of the response to Gustav went very well. A lot of it had to do with the people in this room. We're much better coordinated this time than we were with Katrina. State government, the local government, and the federal government were able to work effectively together.

There is still more work to be done. One of the key things that needs to happen is they got to get electricity up here in Louisiana, get moving as fast as possible. The Governor understands it's a problem, his team understands it's a problem, and I understand it's a problem.

There's a lot of folks from this state that are working hard to re-string the lines. There are people from out of state coming into Louisiana to help, as well, and, of course, all the citizens of this state want to thank the people from other states that are moving in here to help get the electricity up as soon as possible. And I would ask that if utilities in neighboring states have extra manpower, please coordinate with the state and send the folks in. Part of this recovery is going to require the electricity coming back as quickly as possible.

We talked about the need to make sure that in parts of Louisiana that are getting flooded now, rural Louisiana, that MREs and water and ice get delivered to those communities as quickly as possible.

As a governor of a neighboring state, I remember often how people would say, all they care about is the big cities. And I understand there's a lot of focus on New Orleans, and there should be focus on New Orleans. But in the briefings today, it is clear that this state is focused, as well, as on people who live in rural Louisiana and in the smaller towns of Louisiana. And so the efforts will be aimed at helping people there.

Bobby talked about the need for -- to release energy or oil from the Strategic Petroleum Reserve. Last night we got a request from a company doing business here in Louisiana and we met that request. And if -- so oil was released from the Strategic Petroleum Reserve. And we will continue to do that upon requests by companies.

All in all, the response has been excellent. But the people here understand that there is more work to be done. And that's why I came down here with members of the federal government to listen and to figure out how to help.

I can't thank you all enough for working as hard as you are. Looking around, I can see that some people may not have had much sleep recently. (Laughter.) The people of your state care a lot about the fact that you are working as hard as you are. And if this helps you keep going, I want to thank you, and I want to thank all the volunteers and the faith-based community that always rises up in a challenge like this. They listen to that universal call to love a neighbor like you'd like to be loved yourself. And that's happening here in Louisiana again. And I know the people that are -- whose lives have been affected appreciate a total stranger coming in to help.

And finally, the people in Louisiana must know that all across our country there's a lot of prayer -- prayer for those whose lives have been turned upside down. And I'm one of them. It's good to come down here. Governor, I can't thank you enough for your leadership and your team's leadership, and we stand ready to help.

And now I'm going to come around and thank every one of you for working. God bless. (Applause.)

Sarah Palin, Republican Gov. of Alaska, Named as John McCain’s Vice Presidential Candidate

Alaskan Gov. Sarah Palin has been named as the vice presidential candidate for Republican presidential nominee John McCain, setting the stage for history in the 2008 presidential election that now promises either a black president in Democratic nominee Barack Obama or the first woman vice president in Palin.

McCain’s decision to put Palin on the ticket could attract several disgruntled Hillary Clinton Democrats who have refused to back Obama.

A lifelong Republican, Palin became Alaska’s first female governor as well as its youngest when she won the election in 2006. The 44-year-old mother of five has lived in Alaska most of her life, leaving only to attend the University of Idaho where she studied journalism and political science.

With McCain’s selection Palin becomes the first woman to become a vice presidential candidate on a Republican ticket.

U.S. Troops Could be Out of Iraq by 2011 According to Latest Deal

Atlanta, Ga. 8/22/2008 07:56 PM GMT (TransWorldNews)

A draft security agreement detailing a possible exit of U.S. troops from Iraq is now in the hands of the country’s parliament and presidency.

Under the deal U.S. combat troops could be out of Iraq by 2011. The agreement would also pull U.S. forces out of urban areas in Iraq by June 2009.

While the United States could withdraw combat troops by 2011 they may leave troops behind to train Iraqi security forces.

The White House has remained silent on any proposed deal to exit Iraq, saying there were still details that needed to be worked out but President George Bush has been speaking with Iraqi Prime Minister Nouri Maliki.

As part of the 27-point agreement there is a plan to grant U.S. soldiers some degree of immunity from prosecution under Iraqi law.

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President Bush Attends Veterans of Foreign Wars National Convention, Discusses Global War on Terror

THE PRESIDENT: Thank you all very much. Thank you for the warm welcome. And I am proud to address the Veterans of Foreign Wars. (Applause.) I spoke to you when I was a presidential candidate. And this is the fifth time that I have spoken to your national convention as your President. And every time I've been honored to meet with members of the VFW, I come away from these meetings with my -- inspired by your love of country, by your devotion for duty, and for the example you set for those who wear the uniform today.

I also appreciate the fact that you're here in spite of the weather. (Laughter.) Tropical Storm Fay set a challenge for this convention, but your members were wise enough to hang around. I do want to thank the citizens -- the officials of the state of Florida for working hard to make sure that people were ready to address the storm. We watched this very carefully, and I must say that the people of this state worked hard to make sure that this convention and other lives were saved. We appreciate the work of the local officials. And of course, we'll continue to monitor the storm as it moves through, through the area.

I do want to thank my friend, George Lisicki, for his leadership as your National Commander. He's done a fine job on behalf of the VFW. I know firsthand; I've had him to the Oval Office. He's not afraid to speak his mind. I listen. and I know you're proud of the job he has done. (Applause.) And I want to thank his wife, Gloria, for putting up with him. (Laughter and applause.)

I do want to thank Bob Wallace, the Executive Director of the VFW. He has worked very hard to represent you, and he's done so in fine fashion.

I'm proud to be here with Glen Gardner, Incoming National Commander-in-Chief of the VFW, and his wife, Jean. I've known Glen for a long time; I admire him. I told him I'm fixing to retire, so I'm not going to be around to work with him. But no doubt in my mind he'll do a fine job on behalf of the VFW.

I want to thank Virginia Carman, National President of the Ladies Auxiliary. (Applause.) Dixie Hild is the Incoming National President of the Ladies Auxiliary. (Applause.) I want to thank the rest of the leadership for letting me come by to visit with you.

I met an interesting person here today, a woman named Keela Carr. When I go to a city I like to herald people who are volunteering on behalf of the country. Keela has walked from California to Washington, D.C., to thank the veterans for their service to the United States of America. And I'm proud to have met Keela Carr. And I want to thank you for doing what you're doing, Keela. (Applause.)

And I want to thank the members of the Armed Forces that are here today. There is no greater honor than being the Commander-in-Chief of the United States military, and I'm proud to be in your presence. (Applause.)

America owes the men and women of the VFW a debt that can really never be repaid. You fought for our freedoms, and then when you came home, you volunteered to continue to serve this nation. Together with your Ladies and Men's Auxiliaries, members of this organization donate 13 million hours of community service every year. You mentor youth groups. You sponsor blood drives. You send packages to the military units deployed overseas. You provide vital services to your fellow veterans at home. In the VFW, we see the best of the American spirit -- and American -- America honors your service in and out of uniform. (Applause.)

When the history of the last eight years is finally written, it will show how closely and effectively my administration and the VFW have worked together on behalf of Americans' veterans. My budget includes nearly $94 billion for the Department of Veterans Affairs -- which means we have nearly doubled the funding for veterans since I took office. (Applause.)

We've worked together to modernize and expand VA facilities -- and got $5.5 billion of taxpayers monies in the budget to do so. The VFW and my administration have worked hard to expand grants to help homeless veterans in all 50 states and the District of Columbia, because we strongly believe no veteran who served in distant lands should have to live without shelter in the land they fought to defend. (Applause.)

We believe that combat-injured and severely disabled veterans deserve to receive both their military retired pay and their VA disability compensation. I was the first President in more than 100 years to sign concurrent receipt legislation. (Applause.)

We have worked effectively and diligently to provide for those returning home from the front lines today: My administration implemented recommendations from Senator Dole and Secretary Shalala to help our wounded warriors build lives of hope and promise and dignity. We're investing hundreds of millions of dollars to develop new treatments for conditions like traumatic brain injuries and Post-Traumatic Stress Disorder.

Earlier this year, I was pleased to sign a piece of legislation that the VFW has long championed -- a GI Bill for the 21st century. (Applause.)

We also owe something to your brothers-in-arms who never returned home. We will always cherish the memories of those who made the ultimate sacrifice. We will never stop searching until we can account for every missing soldier, sailor, airman, Coast Guardsmen, and Marine. (Applause.)

Over the past seven and a half years, I have seen the VFW's devotion to our men and women in uniform. I have been impressed, I have been inspired by your support of the military. You understand that our men and women in uniform deserve our full support because they are defending America in our nation's first war in the 21st century. That war reached our shores on September the 11th, 2001, a day that you have not forgotten, and neither have I. On that day, 19 men armed with box cutters brought killing and carnage to our homeland. We're at war against determined enemies, and we must not rest until that war is won. (Applause.)

This war cannot be won, however, if we treat terrorism primarily as a matter of law enforcement. Law enforcement is an essential part of our strategy -- but our strategy cannot be limited to law enforcement alone. After the first World Trade Center attack in 1993, our law enforcement community succeeded in tracking down several of the killers, prosecuting them and putting them into jail. But eight years later, al Qaeda terrorists came back to finish the job. The lesson is this: In order to do our duty, our solemn duty, which is to protect the homeland from further harm, we must keep the pressure on the enemy, we must keep the extremists on the run. In order to do so, we must use all assets of national power, including the United States military. (Applause.)

So when this war, with your strong support, we are taking the fight to the enemy. Over the past seven years, America and our allies have captured or killed hundreds of al Qaeda leaders and operatives in more than two dozen countries. We'll continue to battle the terrorists overseas so we do not have to face them here at home.

We're on several fronts in this war on terror. A major front is Afghanistan, where we removed a dangerous regime that harbored the terrorists who plotted the September the 11th attacks. Because we acted, the Afghan people have been liberated. A nation that was once a training ground for terrorists has become an ally in the war on terror. We built a strong coalition of nations including every member of the NATO Alliance to help the Afghan people defend their young democracy. And we will ensure that that country never becomes a safe haven again for terrorists who seek to launch attacks on America or our allies. (Applause.)

Another front in the same war against the extremists is Iraq. We removed a brutal dictator who murdered his own people, who paid the families of suiciders, who invaded his neighbors, who was an enemy of the United States, who repeatedly defied the United Nations. Because we acted, the dictator is gone and 25 million Iraqis are free. Removing Saddam Hussein was right then -- and it is right today. (Applause.)

In 2006, as you well know, the situation in Iraq was deteriorating. Some back in Washington said the war was lost. They were willing to give up on the mission. They were willing to leave a struggling democracy to its own fate. But failure in Iraq could have spread chaos across the region, emboldened Iran, emboldened the terrorists, and given them a new base from which to launch operations against America and allies. I believe this would have been a disaster for America -- and so do the men and women of the VFW. (Applause.)

Early last year, after consultations with our commanders -- and the Commander-in-Chief must always listen to the commanders and not the latest opinion poll -- (applause) -- I ordered a surge of forces into Iraq. I remember briefing the leaders of the VFW on my decision. Since the surge began, violence in Iraq has dropped; civilian deaths and sectarian killings are down. Slowly but steadily, political and economic progress is taking place. Iraq is a rising democracy. Iraq is an ally against these extremists. And our troops have become home -- begun to come home under our policy of return on success. We all look forward to the day when even more of our troops come home. And the VFW understands that the only way to bring them home is with victory. (Applause.)

To ensure that we have the capabilities to prevail in Iraq and Afghanistan, or wherever the terrorists make their stand, we've transformed the United States military. Our branches of the military are working together better than ever. We've more than doubled funding for our Special Operations Command so our forces can hunt the terrorists no matter where they hide. We've increased the number of unmanned aerial vehicles in our arsenal. We're moving American forces from Cold War garrisons in Europe and Asia so they can deploy rapidly anywhere in the world. We're going to increase the size of our ground forces. We'll make our troops more lethal and more agile so they can remain on the offense against the enemy. America's future leaders must remember that the war on terror will be won on the offense -- and that's where our military must stay. (Applause.)

We're keeping the pressure on the enemy. As we've done so, we've defended this homeland. Nearly seven years have passed without another attack on our soil. This is not for the lack of trying by the terrorists. Our intelligence and law enforcement professionals have worked with our allies to stop major al Qaeda attacks, including a plot to blow up transatlantic flights from London, and a plan to strike the tallest skyscraper in Los Angeles. We owe these fine professionals our thanks. And we owe them something more -- the tools necessary to be able to do their job.

Since 9/11, we've given American defenders what they need. We formed a new Department of Homeland Security. We overhauled the nation's intelligence community. We shifted the FBI's focus from investigating terrorist attacks to preventing terrorist attacks. We passed the Patriot Act, which tore down the wall that once prevented law enforcement and intelligence officers from sharing vital information. We created a new National Counter-Terrorism Center. We established a program at the CIA to interrogate key terrorist leaders captured in the war on terror. We worked with Congress to pass legislation that allows our intelligence professionals to quickly and effectively monitor terrorist communications. (Applause.)

We have used all these tools to stop new attacks. And I'm pleased to report to the American people that these tools will be available for future administrations to protect the American people for years to come. (Applause.)

And in this war, we're countering the terrorists' dark and hateful ideology by offering a more hopeful vision -- and that's one based on freedom. On September the 11th, we saw how the terrorists exploit hopelessness and despair to recruit young men for their evil plots against America. We learned that our nation's security depends on combating the conditions that give rise to terror by aiding the rise of free societies. We're engaged in the great ideological struggle of our time -- between the forces of freedom and the forces of tyranny. So we -- America and our allies will support young democracies. We're standing with brave democratic reformers.

Over the past seven years, we've seen liberty on the march, seen citizens in Afghanistan and Iraq establish representative governments after decades of tyranny. We've seen the people of Lebanon take to the streets and demand their independence. We've seen citizens of the former Soviet republic -- republics stand up for their right for free and fair elections.

One of the most inspiring chapters of history was written by the Georgian people during the Rose Revolution of 2003. In the years that followed, the Georgian people have held free elections. They've established a democratic form of government. Georgia has also sent troops to Afghanistan and Iraq to help others realize the blessings of liberty. Georgia has stood for freedom around the world -- now the world must stand for freedom in Georgia. (Applause.)

For nearly two weeks, the world has watched Georgia's young democracy come under siege. Russian forces invaded the country in a disproportionate response to a long-simmering conflict in Georgian regions of South Ossetia and Abkhazia. The world has come together to condemn this assault. Yesterday Secretary Rice met with members of the NATO Alliance to discuss the ongoing situation. Our countries agreed that Russia must honor its commitment to withdraw its troops from Georgia and to return to the status quo before the hostilities began on August the 6th.

The Alliance is considering seriously the implications of Russia's actions for the NATO-Russia relationship. The Alliance determined that business as usual cannot continue with Russia. And the Alliance agreed to help Georgia by sending NATO teams to assess the country's needs, and by forming a new NATO-Georgia Commission.

The United States of America will continue to support Georgia's democracy. Our military will continue to provide needed humanitarian aid to the Georgian people. South Ossetia and Abkhazia are part of Georgia. And the United States will work with our allies to ensure Georgia's independence and territorial integrity. (Applause.)

The people in this room understand the benefits of liberty because you fought to defend it and bring it to others. As young men, many of you battled the forces of Nazi Germany and the Empire of Japan on the battlefields of World War II. In those days, it would have been hard for you to imagine that the enemies you were fighting would become some of America's closest allies. Six decades later, Germany and Japan are strong democracies. They are two of our closest allies.

In your own lifetimes, you have seen firsthand the power of liberty to transform societies and yield the peace we all want. (Applause.) I believe that people in this hall believe that the power of freedom is unstoppable. I believe it because I believe in an Almighty that has given every man, woman and child on the face of the Earth freedom. (Applause.) And I know freedom yields the peace we want. If America maintains our confidence in our ideals, is willing to take the lead, freedom will once again prevail. And we'll be able to look at a generation of Americans coming up and say, we did our duty; we defended America and laid the foundation of peace for generations to come. (Applause.)

We can also be confident in every generation freedom has found brave defenders in the men and women of our Armed Forces. You know, through the years I've received a lot of heartfelt letters from our military families. One of them was from a woman in Texas named Sue Stoner. Sue's husband is a decorated Air Force veteran of Vietnam and the Gulf War. Last year during a trip to Fort Hood, the couple witnessed their six-year-old granddaughter Mikayla do something that every American should do, as well. The little girl bounded over to a wounded stranger in Army fatigues, and said, "I just wanted to say thank you for serving our country." As Mikayla's proud grandmother tells it, the soldier leaned forward on his walker, and said, "Sweetheart, I did it for you." (Applause.)

Every one of you put on the uniform for the same reason. You risked your life, you sacrificed so Americans like Mikayla could grow up in freedom. We will always honor your service. We will never forget your sacrifice. (Applause.)

This is the last time I will address a veterans convention as the Commander-in-Chief. Over the past seven, eight years -- seven and a half years, I've been honored to get to know many of your members. I've relied on your counsel. I have benefitted from your wisdom. I have been extremely grateful for your prayers.

I know you share with me a deep love for America and an awesome pride in those who defend her. When I meet with our troops, they always inspire me with their sense of duty and honor. They are America's finest citizens. (Applause.) I am confident that our troops will always be able to count on the fellowship and the support and the love of the men and women of the VFW. May God bless you, and may God bless America. (Applause.)

President Bush Discusses Situation in Georgia, Urges Russia to Cease Military Operations

Good morning. I've just met with my national security team to discuss the crisis in Georgia. I've spoken with President Saakashvili of Georgia, and President Sarkozy of France this morning. The United States strongly supports France's efforts, as President of the European Union, to broker an agreement that will end this conflict.

The United States of America stands with the democratically elected government of Georgia. We insist that the sovereignty and territorial integrity of Georgia be respected.

Russia has stated that changing the government of Georgia is not its goal. The United States and the world expect Russia to honor that commitment. Russia has also stated that it has halted military operations and agreed to a provisional cease-fire. Unfortunately, we're receiving reports of Russian actions that are inconsistent with these statements. We're concerned about reports that Russian units have taken up positions on the east side of the city of Gori, which allows them to block the East-West Highway, divide the country, and threaten the capital of Tbilisi.

We're concerned about reports that Russian forces have entered and taken positions in the port city of Poti, that Russian armored vehicles are blocking access to that port, and that Russia is blowing up Georgian vessels. We're concerned about reports that Georgian citizens of all ethnic origins are not being protected. All forces, including Russian forces, have an obligation to protect innocent civilians from attack.

With these concerns in mind, I have directed a series of steps to demonstrate our solidarity with the Georgian people and bring about a peaceful resolution to this conflict. I'm sending Secretary of State Condoleezza Rice to France, where she will confer with President Sarkozy. She will then travel to Tbilisi, where she will personally convey America's unwavering support for Georgia's democratic government. On this trip she will continue our efforts to rally the free world in the defense of a free Georgia.

I've also directed Secretary of Defense Bob Gates to begin a humanitarian mission to the people of Georgia, headed by the United States military. This mission will be vigorous and ongoing. A U.S. C-17 aircraft with humanitarian supplies is on its way. And in the days ahead we will use U.S. aircraft, as well as naval forces, to deliver humanitarian and medical supplies.

We expect Russia to honor its commitment to let in all forms of humanitarian assistance. We expect Russia to ensure that all lines of communication and transport, including seaports, airports, roads, and airspace, remain open for the delivery of humanitarian assistance and for civilian transit. We expect Russia to meet its commitment to cease all military activities in Georgia. And we expect all Russian forces that entered Georgia in recent days to withdraw from that country.

As I have made clear, Russia's ongoing action raise serious questions about its intentions in Georgia and the region. In recent years, Russia has sought to integrate into the diplomatic, political, economic, and security structures of the 21st century. The United States has supported those efforts. Now Russia is putting its aspirations at risk by taking actions in Georgia that are inconsistent with the principles of those institutions. To begin to repair the damage to its relations with the United States, Europe, and other nations, and to begin restoring its place in the world, Russia must keep its word and act to end this crisis.

President Bush Attends Dedication of United States Embassy Beijing

   Thank you very much. (Applause.) Thank you. Thank you. (Applause.) Thank you, Ambassador. Mr. President, all you distinguished guests, including the man that was responsible for my coming out here in 1974 -- Henry Kissinger, here. Delighted to see him. (Applause.) And of course, many friends -- lao peng you -- from China, so pleased to see you all here. Thank you for coming.

Let me start by noting that this week has a homecoming feel to it. Barbara and I always welcome the chance we have to come back to China. In fact, I think this is my 19th or 20th visit since I left the presidency, since leaving the White House. But to be here at this special time, special time in China's history, to be back in the embassy where I was proud to have served, and to be here with the members of Bush family who share our love for China and its people, is particularly gratifying, particularly moving for me.

In the 34 years since I first came to China, change has been one of the constants. Peking is now Beijing. The bicycles that used to dominate the roads have given way to more cars. And then when you come to this magnificent "Bird's Nest," the National Stadium, and the other architectural features that now dominate the landscape here, there can be no question that China has achieved something truly special in readying itself to host these Games. It is just simply remarkable.

Of course, I feel the same sense of awe standing here to behold the transformation that our beloved embassy complex has undergone here. I was feeling sentimental when I told Barbara, my wife, that my old office would be occupied by the talented translators who work in the Public Affairs Office. (Laughter.) But as usual, she snapped out -- "You mean they got someone in your office who can speak the language?" (Laughter.)

Barbara and I studied an hour a day, five days a week, but to be honest, one of the great challenges were these Chinese lessons that she and I took together. She simply refused to follow the very sacred "no laughing rule" as I spoke. (Laughter.) I was soon hoping that she would transfer out of my class. (Laughter.)

But as special as any visit to China is for us, as historic as it is to be here for the start of 2008 Summer Olympics and this new embassy opening, it means the most to us to be here with our family. That includes our daughter Doro, who was baptized here; and that includes certainly our President and First Lady; includes our son, Marvin, who is here with us today, and his wife Margaret; and everyone here. The President and the First Lady have served with such honor, served with courage and class during a historically challenging time for our nation and the world. And I am so very proud of him. (Applause.)

And so, with no further ado, the President of the United States. (Applause.)

PRESIDENT GEORGE W. BUSH: Thank you, sir. Thank you, Mr. President. (Laughter.) It is quite an honor to be introduced by your dad. This has got to be a historic moment: father and son, two Presidents, opening up an embassy. (Applause.) I suspect it's the first, although I must confess I haven't done a lot of research into the itinerary of the Adams boys. (Laughter.)

My dad was a fabulous President. (Applause.) And I tell people one reason why was not only did he know what he was doing, he was a fabulous father. (Applause.)

Mr. Ambassador, honored guests, Laura and I, and my brother and my sister, are proud to be here with our dad as we open and dedicate this new embassy.

No doubt this is an impressive complex. To me it speaks of the importance of our relations with China. It reflects the solid foundation underpinning our relations. It is a commitment to strengthen that foundation for years to come.

I thank all those who designed and built the embassy, and all those who work here to advance the interests and values of our great nation. Dad and I are honored that Counselor Dai has joined us; and Minister Xie; Ambassador Zhou -- who, by the way, opened a new Chinese embassy in Washington, D.C., designed by I.M. Pei a couple weeks ago.

We appreciate our friend Anne Johnson being here, Director of the Art in Embassies Program. Dr. Kissinger, thanks for coming. (Applause.)

It takes a special band to open the embassy -- out of West Texas -- Odessa, Texas, for that matter, the Gatlin boys are with us today. (Applause.) I thank the Red Poppies -- (applause) -- thank you for your talent. (Applause.) And finally, I want to pay tribute to Sandy Randt, who has done a fabulous job as our Ambassador to China. Sandy, thank you and

-- (applause.)

We're proud to be here with those citizens of ours who work at the embassy, and we say thanks to the Chinese nationals who make our embassy go, as well.

I'm honored to represent the United States at the Opening Ceremonies of the Olympic Games here in Beijing. And I'm looking forward to cheering our athletes on. (Applause.) Mr. Ambassador, I'm not making any predictions about medal counts -- (laughter) -- but I can tell you the U.S. athletes are ready to come and compete, in the spirit of friendship.

You know, during my last visit here I had the opportunity to break in the mountain biking course. I was so proud of my efforts, I told Laura I was thinking about entering the competition myself. (Laughter.) She reminded me they don't give any medals for last place. (Laughter.)

Tonight the Olympic torch will light the home of an ancient civilization with a grand history. Thousands of years ago, the Chinese people developed a common language and unified a great nation. China became the center for art and literature, commerce and philosophy. China advanced the frontiers of knowledge in medicine, astronomy, navigation, engineering, and many other fields. And the Chinese are even said to have invented the parachute -- something for which the 41st President is very grateful. (Laughter and applause.)

We share a long history. The first American ship arrived in China just after the year we won our independence. World War II, Americans and Chinese fought side by side to liberate this land from Imperial Japan. We all remember very clearly, Dr. K, when President Nixon came to Beijing to begin a new era of dialogue between our nations. You might remember that yourself. (Laughter.)

Today the United States and China have built a strong relationship, rooted in common interests. China has opened its economy and begun to unleash the entrepreneurial spirit of its people. America will continue to support China on the path toward a free economy.

We're also cooperating to fight pandemic diseases and respond to natural disasters. And through the six-party talks, we're working together to ensure that the Korean Peninsula is free of nuclear weapons.

The relationship between our nations is constructive and cooperative and candid. We'll continue to be candid about our mutual global responsibilities. We must work together to protect the environment and help people in the developing world; continue to be candid about our belief that all people should have the freedom to say what they think and worship as they choose. We strongly believe societies which allow the free expression of ideas tend to be the most prosperous and the most peaceful.

Candor is the most effective -- is most effective where nations have built a relationship of respect and trust. I've worked hard to build that respect and trust. I appreciate the Chinese leadership that have worked hard to build that respect and trust. And I thank all those here at the embassy who are doing the same thing. The people here who work made sacrifices to serve our country. Serving America is noble. And I hope you found it to be rewarding.

I'm honored to be with you. I appreciate the honor of dedicating this new embassy. And I'm looking forward to going to the Games. (Laughter.) God bless. (Applause.)

President Bush Meets with Prime Minister Samak of Thailand

PRIME MINISTER SAMAK: We are pleased to welcome President Bush visit to Thailand on the auspicious occasion of the celebration of 175th anniversary of Thai-U.S. relations. As Thailand has now assumed the ASEAN chairmanship, we will use the opportunity to strengthen our engagement and cooperation with the U.S. both bilaterally and through ASEAN.

President Bush and I had just a very good discussion on several issues of common interest. We discussed the strengthening of the close military and the security cooperation which benefit both countries and the region. A case in point is our military close partnership during the tsunami and post-Cyclone Nargis to facilitate access of American relief and assistance to the effected countries.

We will continue our discussion on the other regional issues over the dinner this evening. President Bush expressed his appreciation for Thailand's humanitarian role in sheltering displaced persons from neighboring countries for over 30 years. I also thanked the President for the United States' understanding on the Preah Vihear issue.

We agreed to enhance the Thai-U.S. relation by focusing on education, public health, sciences, security and law enforcement cooperation. Our two countries share a long and special connection. President Bush -- former President Bush Senior and Mrs. Barbara Bush came to Thailand to pay tribute to His Majesty the King on the occasion of the 60th anniversary of accession to the throne in December 2006.

Looking towards the future we agreed that our alliance and friendship will remain firm and close as in the past 174 years, we need to continue working closely together to further strengthen our relationship and goodwill for the benefit of our two countries and the region.

PRESIDENT BUSH: Thank you, Mr. Prime Minister. Sawtdee Khrab. (Laughter.) Thank you, Mr. Prime Minister, for welcoming Laura and me, and our daughter, Barbara, to your beautiful country. I want to thank you very much for welcoming us on behalf of His Majesty the King and Her Majesty the Queen. We appreciate the opportunity to come back, and we honor the friendship that has been in existence for 175 years.

I want to thank you very much for being such a strong ally in the war against terror. Our nations are strengthening our security and defense cooperation. Thailand continues to host Cobra Gold, which is one of the largest annual multilateral training exercises in Southeast Asia.

Thailand's troops have helped the people of Iraq and Afghanistan as they battle extremists and strengthen their democracy, and I want to thank you for those contributions, Mr. Prime Minister. America and Thailand are coordinating our law enforcement, counterterrorism and counter-proliferation activities so we can do a better job of protecting our citizens from danger.

The United States and Thailand are working to expand freedom with good governance. I want to thank you very much and congratulate the people of Thailand for restoring its democracy. Through the Asia Pacific Democracy Partnership, our nations are working together to strengthen democratic values and institutions throughout the region. As the Chair of ASEAN, we support your efforts to reduce trade barriers, and to expand economic opportunity, and help Southeast Asia grow in hope.

The United States and Thailand work together to fight disease. I don't think our citizens understand this, Mr. Prime Minister, but we've dedicated $35 million to help prevent and treat HIV/AIDS here in Thailand, and we're happy to do so. Looking forward to going tomorrow to the clinic where we get to see the efforts of the initiative, it's called the Mercy Center -- and I appreciate you arranging that for me to go see, Mr. Prime Minister.

We're also working on avian flu. I think it's very important for our nations to prepare for the worst. Obviously, we're hoping for the best. And so we've got a good, strong initiative on avian flu.

We're working together to help the people of Burma. We responded very quickly when Burma was struck by the terrible cyclone, and I want to thank you very much for your leadership on that issue. After all, yours was the place where much of the world aid came to be distributed to the poor people there that were deeply affected by the storm.

We want to see prosperity and freedom restored to Burma. Tomorrow, Laura is going to the Thai-Burmese border to visit a resettlement camp where Burmese refugees are receiving health care and humanitarian aid. She's looking forward to the trip, and I'm looking forward to hearing her report from the trip.

So Mr. Prime Minister, I want to thank you very much for your hospitality. I want to thank you for feeding my delegation. (Laughter.) We're looking forward to eating some good Thai food -- which is very famous throughout the world. Please give my very best regards to His Majesty and Her Majesty.

PRIME MINISTER SAMAK: I will.

PRESIDENT BUSH: And thank you very much for being so gracious.

PRIME MINISTER SAMAK: All right. Thank you.

Click here to view high-resolution version (2.85MB)   Image Acquired:  June 30, 2008

Skies in the north were mostly cloudy when NASA’s Aqua satellite passed over California on June 30, 2008, but the Moderate Resolution Imaging Spectroradiometer (MODIS) sensor was able to get this cloud-free shot of Southern California showing fires burning south of Monterey. Places where the sensor detected actively burning fires are outlined in red. Smoke spreads north up the coast. The two fires pictured are among the largest of scores of fires burning in the state. According to the July 1 report from the National Interagency Fire Center, the Indians Fire was 81,378 acres and 95 percent contained; the Basin Complex Fire was 39,906 acres and 3 percent contained.

The high-resolution image provided above is at MODIS’ maximum spatial resolution (level of detail) of 250 meters per pixel. The MODIS Rapid Response Team provides twice-daily images of Northern and Southern California in additional resolutions and formats, including an infrared-enhanced version that highlights the presence of burned ground.

NASA image provided by the MODIS Rapid Response Team. Caption by Rebecca Lindsey.

President Bush Meets with Economic Team

THE PRESIDENT: I want to thank the members of my economic team for assembling here at the Department of Energy. Secretary Bodman, thank you for hosting us. First of all, Secretary Paulson came by this morning to brief me on the financial markets. Freddie Mac and Fannie Mae are very important institutions. You spent a fair amount of time discussing these institutions. He assured me that he and Ben Bernanke will be working this issue very hard.

Secondly, he did inform us that 112 million stimulus payments have gone out, and I congratulate you and your department for doing your job. We've so far spent about $91 billion in tax relief, which has had a positive effect on retail sales. The problem, of course, is that gasoline prices are up, which has affected the people here in our country. And one of the main reasons why gasoline prices are up is because crude oil prices are up. And one reason crude oil prices are up is because demand is outstripping supply.

And therefore, what can we do about it? And that ought to be the question the United States Congress asks. And one way to deal with supply problems is to increase supply here in America. And one of the things we just went through was a briefing from Secretary Bodman and Secretary Kempthorne about the vast potential of crude oil reserves on offshore lands, as well as in Alaska, as well as in the oil shale in the western part of our country. And yet the Democratic leaders of Congress have consistently blocked opening up these lands for exploration.

The other part of our briefing was how we could explore in environmentally friendly ways. Technology has changed dramatically to enable the exploitation of oil in a way that protects the environment. You know, these members of Congress, particularly the Democratic leadership, must address this issue before they go home for this upcoming August break. They have a responsibility to explain to their constituents why we should not be drilling for more oil here in America to take the pressure off of gasoline prices.

I want to thank you all very much for your briefing. These are tough economic times for the American citizens. There is a way forward to help relieve some of the pressure on their pocketbooks. And I'm looking forward to seeing -- watching this Congress respond in a positive way.

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President Bush Attends Ceremonial Groundbreaking of National Military Medical Center

  THE PRESIDENT: Thank you very much, Deputy Secretary England, for that generous introduction. I am so honored to be here at Bethesda National Naval Medical Center. This is often called the "President's Hospital." The reason why is this is where the President gets medical care. But I'm relieved today not to be on the treadmill, weighing in and getting a blood test. (Laughter.) I also will tell you that the care that the President gets here is extraordinary.

I am so excited to be here for what is a grand occasion. This is a big deal, the breaking ground of a new joint medical facility for the men and women of our Armed Forces. Thank you all for joining us.

In a few years the current campus at Walter Reed will close, and many of its services will be relocated to the new complex here on the grounds at Bethesda. The two hospitals will be merged into one central campus, which will be called the Walter Reed National Military Medical Center. At this new center, wounds will be healed, medical knowledge will be advanced, lives will be rebuilt. And those who wear our nation's uniform will be reminded that they have the enduring gratitude of the American people. I thank all who serve Walter Reed and Bethesda. I love being with the healers and caregivers, and incredibly compassionate people who makes our current facility successful and will make this new center a great success.

Congressman, thank you very much for joining us. I know you are proud that this new facility is in your congressional district. Thank you for working hard to see vision become a reality.

Lieutenant Governor, proud to be with you. This man wear [sic] the uniform of the United States military, and I'm proud to be with this veteran, and now public servant for the state of Maryland.

Members of the administration who are here, thank you all for coming. Chaplain York, thanks for the blessings. And all those who wear the uniform, thanks for sacrificing for the country.

This morning, we gather in a place that was chosen by another President to be the site of a world-class naval hospital. When President Franklin Roosevelt dedicated Bethesda in the early years of World War II, he placed this facility on the front lines of what he called the "battle against disease, disability and death." The military "surgeons and nurses, scientists and technicians," he said, "are anonymous heroes of this war."

More than six decades later, our nation is engaged in a very different battle for our freedom. Yet our success still relies on these "anonymous heroes" -- the healers who care for the troops, those troops who keep the American people safe. In this new war, giving our troops the care they deserve requires cutting-edge medical facilities. And that is what this new medical center will provide.

When the construction is complete, this facility will encompass 345 beds and 6.7 million square feet. It will join the resources of the Army, Navy, and Air Force, and make it easier for medical professionals in all three services to collaborate and care for the patients. Our troops and their families will no longer have to travel between Bethesda and Walter Reed to see multiple specialists. The new complex will also benefit from the good work of the Dole-Shalala Wounded Warriors Commission, which has issued recommendations for modernizing and improving our military health care system. Those recommendations will provide a strong foundation for effective, accountable care here at the new Walter Reed National Military Medical Center.

This new medical center will be a place of healing. Every day, our military doctors and nurses and medical staff demonstrate their immense skill and their caring hearts. You soothe the pain and fear of patients. You console families who keep constant vigil over their loved ones. You share the joy of a neurology patient's first recovered words, and an amputee's first steps. When required, you can show tough love -- but you also like to remind patients that laughter is the best medicine. And we look forward to the day when the joy of recovery echoes through the halls of the new medical facility that will be built here.

This new medical center will be a place of innovation. Major Walter Reed was the Army doctor who found that Yellow Fever is transmitted by mosquitoes -- a discovery that has saved countless lives. The new institution bearing his name will continue his legacy of lifesaving research. Today, our nation's military doctors are revolutionizing how we approach traumatic brain injuries, Post-Traumatic-Stress Disorder, and amputee care. In many fields, you are far ahead of civilian medicine. And when Bethesda and Walter Reed merge into one campus across from the National Institutes of Health, this will be the site of many more promising breakthroughs that will benefit not only our troops, but all mankind.

This new medical center will be a place of compassion. At Bethesda and Walter Reed, volunteers organize holiday celebration, poker nights and field trips. They distribute care packages from thousands of Americans who want to show their gratitude for our troops. Recently, schoolchildren from New York made pillows for soldiers at Walter Reed, and sent letters along with the gifts. The children wrote: "[You are] everyone's hero." "Thank you for fighting for our freedom." At this new center, the Americans who fight for our freedom will get the compassion and support they deserve.

This new medical center will be a place of courage. Our wounded warriors show that while the human body is fragile, the human spirit is strong. Anybody who has met the wounded at Walter Reed and Bethesda cannot help but be incredibly impressed by the courage and sacrifice of our troops.

Recently, I saw this strength in a young Air Force Staff Sergeant named Scott Lilley. Scott was serving in Iraq when an IED left him with a severe brain injury. I think it was last 4th of July that you came to the White House. Yes, I was one who felt like this guy had no chance. And yet, he -- the doctors here used state-of-the-art technology and aggressive treatment to get Scott better. Their perseverance paid off. And so has his. I welcomed he and his mom and dad to the Oval Office the other day. He was more eloquent than I was, which isn't all that hard. (Laughter.) He drives a car, he goes to baseball games, he loves to joke.

His doctor calls Scott's recovery "miraculous." And thanks to the extraordinary care he received at Bethesda, as well his own extraordinary resolve, he is now back on active duty in the Air Force. And we are glad you're here. (Applause.)

The greatest privilege of serving as President is to be the Commander-in-Chief of such an extraordinary group of men and women who wear our nation's uniform. And I'm pleased to help start construction on the new hospital that will continue to provide the excellent care our troops deserve. It is fitting that this new facility be built in a place called Bethesda, which draws its name from the Biblical pool of healing. It is there that a lame man was made to walk, and was dispatched with the words: "Behold, thou art made whole."

I pray that this will be the site of many miracles of healing -- where the lame will walk again, where broken bodies will be made whole, and where you'll always know that you're in our prayers and in the hearts of the American people.

May God bless you, and may God continue to bless our country. (Applause.)

President Bush Meets with President Talabani of Iraq

PRESIDENT BUSH: It's been my honor to welcome a friend, President Talabani, back to the Oval Office. He is the President of a free Iraq. He is a man who's been on the front lines of helping to unify Iraq and to help Iraq recover from a brutal regime -- that of Saddam Hussein.

I complimented the President on the progress that the government has made. I complimented the President on the fact that as security has improved, he and his fellow officials are reaching out to all aspects of society to help people realize the blessings of a free life.

There's still a lot of work to be done, we recognize that. We talked of a variety of subjects. We talked about a strategic framework agreement that suits the Iraq government. We talked about elections and different laws that have been passed. I did compliment the President on working hard to see to it that the legislative session this year has been very successful. We talked about the fact that the economy is improving, and that the attitude of the people there has improved immeasurably over the years.

And so I welcome you here. I'm proud of what you've done, and I thank you for the tough decisions, so that the people of a free Iraq can realize hopes and dreams. Welcome.

PRESIDENT TALABANI: Well, I am proud to have the honor of meeting President George Bush, whom we consider the liberator of Iraq from the worst kind of dictatorship, as a great friend of the Iraqi people. I'm grateful for what he said about me, but I agree with him that we are going to work together for having this agreement -- security agreement between the United States and Iraq, and also to continue our cooperation in our struggle against terrorism, for promotion of democracy in Iraq and Middle East.

We are proud to have such a good friend here in this great country, and I think we can -- I can say that we can pass this year two important laws, oil and election. And we are now going to reunite our government by bringing -- (inaudible) -- to the United Assembly representatives, to the Iraqi National Unity government headed by our Prime Minister, Nouri Maliki.

I also briefed our good friend about the achievements which Iraq had done in struggle against terrorism and, again, militias, who were making troubles for Iraq and threatening civil war. Now I can say that Iraq -- big part of Iraq is stable and is secure and liberated from the danger of terrorism and militia.

Yes, some places still there are some groups that remain here and there, but I think big achievement we have done this year with the support of the United States Army and government, and with the friendly advices from President Bush. I can say that we are proud to achieved good successes in Iraq, and our economy is growing.

We have also -- big steps forward for national reconciliation. We improved our relation with our neighbors -- with Turkey, with Egypt, with Jordan, with Kuwait. We normalized our relation with Iran and with Syria, also. So Iraqi government is now going to play its role in the Arab world as one -- a founder of the Arab League. And there is no -- I think no more, any kind of isolation of our government.

We are doing our best for this agreement -- this agreement with the United States of America. I think we have -- we were able to go the steps towards reaching to finalize this agreement. And we continue our struggle to -- our efforts to reach -- Inshallah -- very soon this agreement.

And again to thank -- here I am again to thank here our great friends, President Bush and American people, for their sacrifice and their support for the Iraqi people. Thank you very much.

PRESIDENT BUSH: Thank you, Mr. President. Thank you.

We talked about Doha. You know, it's -- I'm a free trader. The Chancellor is a free trader. The question is, you know, is there a commitment to free trade in the face of protectionism? A lot of protectionism in the American political scene these days. I'm sure there's some protectionism here in Germany. I happen to think it would be, you know, disastrous for the world economy and disastrous for poor nations if we didn't trade freely and fairly.

One way to make that commitment is for the Doha Round to succeed. I assured the Chancellor that we're committed to the Doha Round. We will work hard to achieve it. The Transatlantic Economic Council is a very important council that we started together as a way to resolve our differences, to make sure that trade is fair and free.

All in all, relations with Germany are strong, as I told you. And that's good and that's important. And Madam Chancellor, I want to thank you for your friendship, as well.

CHANCELLOR MERKEL: Well, we now have the possibility to take questions. Maybe we ought to start with a German correspondent.

Q (As translated.) Mr. President, Madam Chancellor, you spoke about Iran at some length. In Israel the press writes that Israel might well contemplate action against this threat that Iran poses to them. What would be your -- what are you saying, Mr. President, to the Israeli government? And you said, Chancellor, give diplomacy a chance. Madam Chancellor, Mr. President, how long would you say diplomacy has to be given a chance? Can we exclude that during your term in office military action will be taken -- will take place against Iran, Mr. President?

And you, Chancellor, how do you assess the era of George Bush? In your party, one of your leading party members said that you will not miss George Bush. Will you miss him?

And a question directed to both of you -- why do you, Mr. President -- I think -- don't ask for too long, but why do you -- why are you seen as so unpopular, Mr. President, in Germany?

PRESIDENT BUSH: I just told you that all options are on the table, and my first choice is to solve this diplomatically. And the best way to solve it diplomatically is to work with our partners and that's exactly what we're doing. And the message to the Iranian government is very clear: that there's a better way forward than isolation, and that is for you to verifiably suspend your enrichment program. And the choice is theirs to make. Obviously we want to solve this issue peacefully and so we'll give diplomacy a chance to work. And I want to thank the message that came out of the EU meeting yesterday, which is that if they choose to be -- continue to be obstinate, there will be additional sanctions.

CHANCELLOR MERKEL: We talked just now at some length about this. I very clearly pin my hopes on diplomatic efforts and I believe that diplomatic pressure actually already has taken effect. If you look at the situation in Iran on the ground, you see that quite clearly. These efforts can have a success, but this presupposes, obviously, that the global community is sort of unified. Both in the European Union and in the world [sic] Security Council we have to continue this common approach. We cannot exclude either that there may well be a further round of sanctions, and those need to be negotiated in the Security Council of the United Nations.

What's important now is to see to it that this last round of the sanctions is actually implemented and can take effect, because the effectiveness of sanctions is actually been proved only once they are taken seriously. And we are under certain -- quite a considerable pressure to act together and in concert. And we in the European Union will do everything to see to it that this actually happens.

As regards our relationship, you know that this is a relationship characterized by friendship. It's a direct and candid relationship when there are differences of opinion. Whenever they were differences of opinions, we actually called a spade a spade. It's actually nice about the President, that you can actually call a spade a spade with him. And when, for example, I had -- as regards to the climate change discussion last year, this year, when we -- ever we had differences of opinion, there was a way forward, there was a constructive way forward.

And I think that this initiative on climate by the European Union is a very important initiative. The President himself took actually forward action on this, apart from military action that we do together -- for example, in Afghanistan, in the general international negotiating processes.

We also need on other areas between the European Union and the United States -- not only Germany and the United States -- a lot of close cooperation in many areas, and there was always greater -- great openness here between us. This cooperation is fun, I must say, and as the President said, it is going to be a sprint to the last day of his office. And I trust -- often trust that we shall have other similar meetings of this kind -- candid and open and constructive.

I'm looking forward to the G8 summit in Japan. I hope that we can make further progress on climate protection, which -- talking about targets now -- that is to say, some kind of binding targets -- I think is already great success.

Q Mr. President, back on Iran, can you talk a little bit about -- well, Iran has signaled that it seems likely to reject Mr. Solana's offer, presenting on behalf of you and the EU. What have you and your European counterparts agreed upon in terms of new measures against Iran, if that is indeed the case?

And to Chancellor Merkel, what is Germany willing to do specifically whether in implementing the sanctions already in place, or taking further measures beyond those?

PRESIDENT BUSH: That's exactly what we discussed: How do you implement sanctions that are already in place, and should we levy additional sanctions? Our position is, is that we ought to enforce the sanctions that are in place, and we ought to work with our allies to levy additional sanctions if they choose -- if the Iranians choose to continue to ignore the demands of the free world.

CHANCELLOR MERKEL: I personally have always come out very strongly in favor of seeing to it that sanctions are decided at the level of the United Nations Security Council, too, because including China and Russia obviously makes for much greater effectiveness of such sanctions. But that doesn't exclude that within the European Union, too, we may discuss, for example: Are further possibilities open, for example, in the banking sectors? But these further possibilities, these further measures, must not lead to a situation where at the greater -- the bigger stage, so to speak, we then relent, because the more countries are in on this, the more the effect -- the more effective the impact will be on Iran, for example.

We always think that quite often, on the one hand, people like to reject certain measures to be taken, but let us think of the people in Iran. This is what is essential. I think these people deserve a much more -- sort of a better outlook also as regards their economic prospects. And we would hope for the leadership in Iran to finally see reason. I mean, just look at the reports of the IAEA. They -- it says clearly -- the report states clearly that certain violations of agreements that were entered into have taken place, and we -- it means that we need to react to this, even if it -- with further sanctions, if that's necessary.

Q Mr. President, on the way to Europe, you gave a very interesting interview for The Times newspaper in which you basically said that you regret your war rhetoric. Now I'm wondering, do you actually just regret your war rhetoric, or do you regret having gone to war with Iraq?

PRESIDENT BUSH: I don't regret it at all. Removing Saddam Hussein made the world a safer place. And yes, I told the guy -- the guy said, now what could you do over? First of all, you don't get to do things over in my line of work. But I could have used better rhetoric to indicate that one, we tried to exhaust the diplomacy in Iraq; two, that I don't like war. But, no, the decision to remove Saddam Hussein was the right decision.

Myers. Tell me -- no, no, Eggen, Eggen, excuse me. I called you yesterday, Myers. What's the difference? (Laughter.)

Q Thank you, Mr. President. Thank you, sir.

PRESIDENT BUSH: Yes, no problem. (Laughter.)

Q Speaking of Iraq, there are increasing controversy in Iraq over the security agreement that's being negotiated. Some top Iraqi officials are calling for a dramatic reduction in the U.S. presence. Does this concern you that the direction of those negotiations are going in?

And Madam Chancellor, does this have any impact on your approach towards Iraq?

PRESIDENT BUSH: First of all, I think we'll end up with a strategic agreement with Iraq. You know, it's all kinds of noise in their system and our system. What eventually will win out is the truth. For example, you read stories perhaps in your newspaper that the U.S. is planning all kinds of permanent bases in Iraq. That's an erroneous story. The Iraqis know -- will learn it's erroneous, too. We're there at the invitation of the sovereign government of Iraq.

And I strongly support the agreement because I think it helps send a clear message to the people of Iraq that, you know, that security you're now seeing will continue. And one of the lessons of Iraq is, is that in order for a democracy to develop or in order for an economy to develop, there has to be a measure of security, which is now happening. So I think we'll get the agreement done.

And as I said clearly in past speeches, this will not involve permanent bases, nor will it bind any future President to troop levels. You know, as to -- look, Eggen, you can find any voice you want in the Iraqi political scene and quote them, which is interesting, isn't it, because in the past you could only find one voice, and now you can find a myriad of voices. It's a vibrant democracy; people are debating. There's all kinds of press in the Iraqi scene, of course to the benefit of the Iraqi society.

And I deal with Prime Minister Maliki. He appreciates our presence there, and he understands that we're returning on success; as the situation merits, and the situation improves, we're bringing our troops home. And I'm pleased with the progress. I don't know whether or not it's -- the progress has made it here to Germany or not yet, but the progress in Iraq is substantial, and it's going to help change the Middle East for the better. And I love the idea of having -- giving people a chance to live in a free society. The blessings of freedom are -- shouldn't be just a regional blessing; I believe freedom is universal and I believe freedom yields peace.

Madam Chancellor.

CHANCELLOR MERKEL: Well, obviously, from the German side, too, and the European side, for that matter, we have every interest, indeed, a vital interest in seeing Iraq taking a turn for sort of a good kind of development. I invited the Iraqi Prime Minister here to Germany, and I think he will pay us the honor of a visit. We have been trying to have economic relations. We've also, outside of Iraq, also trained security personnel, and we're ready to continue that.

So everything we can do beyond a sort of military presence, everything we can do as regards civilian building up of the country, assisting them is something that we're continuing to doing. And I would like to very much look forward to the visit of the Prime Minister. We're glad to see progress happening there on the ground, because it's in our vital interest to see to it that this region takes a turn for the better, and it's in the interest of the region, too.

STS-124 Begins First Full Day in Space