Wednesday, May 21, 2008

White House Press Briefing by Dana Perino and OMB Director Jim Nussle 05/21/08 VIDEO, PODCAST

White House Press Briefing by Dana Perino and OMB Director Jim Nussle 05/21/08 VIDEO, PODCAST Briefing by Dana Perino and OMB Director Jim Nussle FULL STREAMING VIDEO, running time 18:10 min, James S. Brady Press Briefing Room, Dana M. Perino Biography, 12:42 P.M. EDT. PODCAST OF THIS ARTICLE and Press Briefing Slides (PDF, 318 KB, 3 pages)
MS. PERINO: Hello. I have one announcement. First of all, we wish Deb Riechmann a happy birthday. (Applause.) So I guess I have two announcements.

Today the President will sign the Genetic Information Non-Discrimination Act, a bill that will prohibit health insurers and employers from discriminating on the basis of genetic information. And I have one update -- this will now be open to pool coverage in the Oval Office. The legislation will ensure that health plans and health insurance insurers would not be able to deny coverage to individuals or charge higher premiums based solely on a genetic predisposition to developing a disease in the future.

The President will take time to especially thank and recognize the leadership of Senator Kennedy, who worked tirelessly on this issue for more than a decade. And we appreciate Senator Kennedy's efforts to get this legislation passed and delivered to the President for his signature today.

Next, I'd like to introduce the President's Director of the Office of Management and Budget for an update on the farm bill, and also on the war supplemental. He'll take some questions, and then I'll finish up.

DIRECTOR NUSSLE: Thank you, Dana. Let me begin with the farm bill. We sent the Congress our farm bill proposals over 16 months ago, because the President recognized that during a time of record farm income, that Americans deserved a reform-minded farm bill. We included our farm bill in the budget. Instead Congress sent us a bloated bill with too much spending, not enough reform, budget gimmicks and even more earmarks. And so today the President has vetoed the farm bill, as he has promised.

We proposed the President's farm bill based on comments that were gleaned from people in the public and farmers all across the country. The bill that he has vetoed increases spending by more than $20 billion, yet fails to reform farm programs at a time when farm income and crop prices are setting records. Americans are frustrated with wasteful government spending and the funneling of taxpayer funds to pet projects. This bill only worsens the frustration that they will feel.

For example, $175 million is in this bill to address water issues in desert lakes; $250 million for a 400,000-acre land purchase from one single owner; funding for a non-competitive scale of national forest land to a ski resort in Vermont -- some have referred to this as the "trail to nowhere;" $382 million that was earmarked for one specific watershed; $170 million for salmon fishermen in the West Coast. In this bill, it requires taxpayers to fund peanut storage, and it makes loans and grants more costly for potential energy producers by expanding Davis-Bacon.

Some American businesses would be forced to pay their taxes early to help cover the $20 billion of increased spending. Yet there's no meaningful reform in this proposal. For example, farm income after expenses or adjusted gross income can be as high as $1.5 million before direct farm payments are cut off. And the bill completely eliminates the limit on other payments or the marketing loan.

So at a time of great need for global food aid, this bill restricts our ability to provide emergency food by blocking and locking in aid dollars for non-emergency use. It fails to allow us to use a quarter of the food aid as we proposed to buy food in developing countries, or across the world. The need I believe is important, and it takes months to ship this food overseas. We want to be able to purchase locally. This bill prevents that.

Congress should extend the current farm bill rather than jeopardizing America's support for a farm economy and wasteful spending that fails to target payments to farmers who really need the support.

Let me also address quickly the supplemental that is on the floor in the Senate today, and was on the floor of the House earlier. Memorial Day is obviously a time to observe and commemorate the sacrifices our men and women in uniform make to protect national security. As we honor their service this coming Monday, it's both disappointing and, for that matter, I believe irresponsible, that Congress has failed to provide our troops with the resources they need by this fast-approaching deadline.

Instead, Democratic leaders have cynically used the supplemental bill that should have been focused on our troops and national security to advance their political agenda of higher government spending and tying the hands of our military commanders.

As General Petraeus and Ambassador Crocker testified, the surge is working to bring greater security to the people of Iraq and allowing for significant political and economic progress. Defeating the enemy in Iraq will make it less likely that we will face that enemy here at home. We must support our troops and diplomats, and not undercut their mission or reverse their successes.

Congress has had most of the troop funding request since February 5th of last year, 2007, more than 15 months. I believe it's inexcusable that they have missed their deadlines that they have self-imposed. As stated by Secretary Gates, this delay will result in the Department of Defense needing to employ budget shell games to pay for the troops and to provide them the equipment and the training and the pay and the safety to do the job that they have been asked to do.

Secretary Gates also stated, "After June 15th we will run out of funds in the account to pay soldiers, including those in Iraq and Afghanistan." First American military personnel. After June 15th, we will run out of the funds to pay -- in this account, to pay soldiers, including those in Iraq and Afghanistan.

Let me turn to a chart -- there we go. The President took a clear and principled position regarding this funding from the very outset. He made it clear he would veto a supplemental that does not meet the needs of our troops, ties the hands of our military commanders, or exceeds the requested level of $108.1 billion. However, the House and Senate includes billions more in spending that the President has not requested.

The Senate bill has $10 billion more in discretionary spending alone, under-funding priorities from this year's omnibus bill alone, even though they conveniently found room for $16.9 billion in earmarks. In addition, with the national unemployment rate as low as 5 percent, the Democrats' plan extends unemployment benefits beyond the existing benefit of 26 weeks. It's a one-size-fits-all plan that really doesn't make any sense. Only five states have an unemployment rate of 6 percent or higher, and more than two-thirds have an unemployment rate below 5 percent.

The bill proposes increases in veterans' benefits. Throughout the year the President has led efforts to expand benefits for our veterans. This idea has bipartisan support. But Democratic leaders have rejected the bipartisan bill that was approved by the Veterans Affairs Committee, and instead has air-dropped him a bill that has not even had consideration. They don't want transferability of the education benefits, which doesn't -- isn't provided in this bill. And it doesn't provide greater rewards for continued military service in our all-volunteer force.

The House includes a huge tax increase on small businesses at a time when job creation is necessary, not increased taxes. And the House bill didn't even fund the troops.

Republicans decided they weren't going to be a pawn in this cynical game, so 132 of them voted "present" to express their concern. The Democrats could only muster 85 votes to support troop funding.

Finally, both House and Senate supplemental bills tie the hands of our military commanders. Because the House and Senate bills fail to meet the President's principles, if either one of these bills were presented to the President, he would veto it.

And I'm pleased to take your questions.

Q Why are you surprised that politics is being played on the Hill?

DIRECTOR NUSSLE: I think what's surprising here is that there has been 15 months of lead time. It's not unusual that there's politics in Washington or politics on the Hill, particularly in an election year, but you would think you could set aside that momentarily in order to do a job that they've known is necessary to do for over 15 months, and that's pay for the troops.

There are many, obviously, who have different opinions about the global war on terror, but once our men and women are in harm's way, you would think that politics could be set aside to ensure that they were paid, that they received the safety equipment that they needed, and to ensure that they could do the basic job that they've been asked to do.

So with 15 months of lead time, there was time for a little bit of politics. But the time has run out now to make sure that the funding is there, and the Defense Department is now going to have to take some drastic measures to ensure that funding is available in the meantime.

Q And on the farm bill, given the margins, can you do anything but complain? I mean, there's an awful lot in there for both Republican constituents -- constituents of Republicans and of Democrats.

DIRECTOR NUSSLE: Well, we're certainly doing more than complain. We've submitted legislation; we've submitted reform proposals; we've tried to work with the Congress in order to not only fit the spending within a reasonable budget plan, but also to ensure that there were reform proposals. Congress has decided to go against that. We're doing much more than complain. We're actually making proposals, working with the Congress to try and improve it. When that failed, the President had to make a decision, and he's decided to veto it.

Q Following up on that, it appears clear the farm bill will be overridden -- and, in fact, that might start as soon as today -- so there are overwhelming margins, and the President is vetoing anyway. When the Strategic Reserve bill was passed, the President opposed that, but signed it anyway, and part of the reason that we were given was because the margins in the House and Senate were so huge. So how do you determine when to veto, when not, when it's clear what Congress wants to do?

DIRECTOR NUSSLE: Well, first on the SPR, it was, I believe and many in the administration believe, a fairly meaningless proposal with regard to our overall energy security, from the standpoint of reducing prices. We wanted to ensure that our national security was preserved by ensuring that the SPR was available for a disruption in supply. And so it was somewhat of a different situation. The farm bill is a significant piece of legislation which will increase spending not only for the next five years, but sets the predicate for actually the next 10, based on the way that the budget has gone through this process.

Second, it's also important at a time when we're trying to expand trade around the world, and to ensure that we increase the amount of products that are available, to ensure that those who are in -- needing food have that available to them. So this is a much more significant piece of legislation. And we have worked over the last 16 months with the Congress in order to try and improve the farm bill. And Congress has basically decided to thumb their nose at us.

Q So on military spending, what exactly are you going to do from here? Are you going to start sending out notices of furloughs, or what is going to happen?

DIRECTOR NUSSLE: Well, we don't -- the OMB does not send out furlough notices, nor does the White House. That's a decision that the Defense Department will make. And according to Secretary Gates and the Defense Department, those notices may begin as -- in the next month. And notification to particularly the civilian workforce, similar to what occurred in December, will also need to go out in June if the funding is not available, as well as reprogramming will -- a request for reprogramming will have to be sent to the Hill probably at the end of next week. And changes -- as the Secretary described the budget shell game -- will have to be played with the accounts that are currently available to the Defense Department just to make ends meet during that period of time.

So there's more than just the notices of furlough that will go out. This is a terrible way to run the department, and again, something that both Congress and the Department of Defense have known for quite some time.

Q Is there no amount of domestic spending that the President would allow on the Iraq war supplemental? Or is it the matter of the amount, or is there some way -- limit that they could put it within that some would be allowable?

DIRECTOR NUSSLE: Well, the interesting part about this, which I find fascinating, is that at a time when -- there are those who are suggesting we do need domestic spending -- instead of accelerating the appropriations process for this coming year, instead it appears that Senate leaders, in particular, and even some in the House, are making the strategic decision to punt all of those appropriation bills until next year.

So if the need is so urgent for spending, domestic spending, why not get your work done? Why not work on the appropriation bills instead of basically punting that until the middle of next year -- which factually or technically they will be doing by waiting for what they believe is a Democrat President to make a better deal with?

That to me suggests that this is not about domestic spending; it's about trying to hold the troops hostage in order to get a few pet projects into this particular bill; and recognizing that they know the President has made a principled position, one that he was able to hold to in December in the omnibus bill process. And I believe it's those reasons why the leadership has made the decision that they've made.

Q Okay. Why do you -- what makes you think that they're punting until next year on the appropriation?

DIRECTOR NUSSLE: All of the -- first of all, no appropriations bills are making it through the process. It appears through all of their announcements that they have made that -- or many of the announcements that they have made that they believe that they might have a better deal with the next President. I assume they mean a President Obama. That being the case, they've decided instead to go for a continuing resolution strategy and wait for a better deal.

And all I'm suggesting, or observing, is that if it is in fact so urgent to have all of this domestic spending considered, you would think, rather than sticking it into the supplemental, or at least in addition to considering that as a strategy, they would also accelerate the appropriations process. Instead, what they have basically done is waited until today to get a budget done, and the appropriations process has not really even kicked off yet.

Q Okay, just what about my original question? Is there a principle involved that there's no domestic spending on this bill, or would the President allow some amount, as long as it's not as much as they've proposed?

DIRECTOR NUSSLE: Well, we're in the third inning of a what's going to be a long game. The President has made it very clear that $108 billion in the request in order to ensure that the troops have what they need is the most important and first priority. In addition to that, not tying the hands of commanders, not adding extraneous spending are important veto principles that he has also laid out. So we haven't seen what the final version is. In fact, no spending bill has passed any floor yet, so we don't even know what we're looking at. But the most important thing at this point in time is to stay within those principles and make sure that the troops are funded.

Q Jim, if this is the third inning, that suggests we're digging in for a long game. How's this going to be resolved?

DIRECTOR NUSSLE: Well, you would have thought that the game could have been accelerated and that they could have gotten this done a lot earlier. That's what's so perplexing about this, is that they've had 15 months of lead time. It was the Congress that requested that all of this funding be proposed up front in the budget that was proposed back in February of 2007. And it was the Congress that has already held two hearings with the State Department, with Secretary Rice, three hearings with Secretary Gates, one hearing with me, in order to consider this supplemental spending over the course of the last 15 months. So they've had a lot of lead time to understand this. I wish it was the 9th inning and we were ready to sign a bill and get on with it. But we're, it appears, no closer as a result of the actions that have been taken.

Q Just to clarify, the administration has veto threats on both the House supplemental and the Senate supplemental version, correct?

DIRECTOR NUSSLE: Yes.

Q Sir, as far as your choice between food and oil, millions of people around the globe are now making choices -- on the high rise. And two outbreaks in China and Burma also made a difference. And the Secretary of Agriculture said that as far as ethanol is concerned, making ethanol from corn is not making any difference as far as high rise of food and oil. So where do we stand now because of these earthquakes and now Memorial Day is coming -- what is the choice for millions of families in the U.S. and around the globe?

DIRECTOR NUSSLE: It's a good question, a fair question. I'm not sure I'm prepared to answer that for you today, so why don't I defer on your very good question.

MS. PERINO: Do you want to take one more in the back?

DIRECTOR NUSSLE: Yes.

Q Among the things listed as unnecessary projects, the $170 million for relief for Northwest communities because of the salmon season that has been pretty much canceled -- does the administration have a better idea to help that industry and those communities?

DIRECTOR NUSSLE: Well, again, there are, I'm sure, worthwhile concerns within all of these particular bills that move through. But when you stick that into a farm bill, when you do it in a way that is bloated, more than five times the original proposal of the farm bill itself, when it doesn't include the other reforms -- what may be in and of itself a good provision -- and there may be other examples of that -- again, I'm not sure I can comment on each specific one.

But when you throw it all together, I think that's when not only the taxpayers get frustrated, but many get frustrated about the fact that these bills come through, they don't have reform, they're too expensive. And I think that's part of the reason why that, in this instance, we're seeing such an outcry from the public about this kind of a bill.

So one more -- I've been passing over you and I didn't mean to.

Q That's all right. Thank you very much. I believe I heard you mention the words "President Obama." Does this mean the Bush administration is contending there is no chance for a President Hillary?

DIRECTOR NUSSLE: You know, as soon as that word came out of my mouth I thought, I should have made sure I attributed that to Senator Reid. I believe Senator Reid was suggesting that. I have no prediction on the Democratic primary.

Thank you very much.

MS. PERINO: Thanks, Jim. Okay, any others? April.

Q Dana, according to the Secret Service, there's going to be -- they are soon to come up with the conclusion of an investigation over this noose incident at the Beltsville Training Facility. And they're saying that it looks like it wasn't racial and the fact that it wasn't a joke, and also that they're trying to determine if this Secret Service agent understood the meaning of a noose. What did this administration say about this incident and about what I just told you, as the President has come out strongly on the issues of nooses?

MS. PERINO: Well, as you just said, the Secret Service is investigating the incident, and as you just said also, they have not completed that investigation. So I am not going to get ahead of them and I'll let them do that. But the President -- could you please put your hand down for a second so I can concentrate on April.

The noose symbol is a symbol that the President has talked about, as you said -- he did it in the East Room. And he was amongst the first to say that it is not a joke, it is taken very seriously, and that is for good reason. In fact, he said, "The noose is not a symbol of prairie justice, but of gross injustice." The President's position on that has not changed a bit. But I think that it's only appropriate, April, to allow the Secret Service to conduct this investigation unfettered -- with unfettered influence from the White House.

Q But they have -- the Secret Service, especially, particularly an agent, these are very intelligent people who, when they go out in the community with the President or presidential candidate, they have the intelligence enough to survey a crowd, to understand what could happen. And for the Secret Service to say this agent -- they're trying to find out if he understood the meaning -- isn't that kind of a contradiction? And also do you feel that if these kinds of things are allowed within the Secret Service, do you think that is fair to a Barack Obama or a Condoleezza Rice? Can they actually effectively protect minorities?

MS. PERINO: April, I think that you're -- one, you're trying to get me to comment on an investigation that the U.S. Secret Service is conducting. And it's not appropriate for the White House and the President's spokesperson to be getting themselves involved in an investigation that the U.S. Secret Service is conducting. And I'm sure they are conducting it with integrity and that is what the President would expect. So let me just leave it at that.

Q But is it fair for a Barack Obama or a Condoleezza Rice to have those kinds of incidents happen and --

MS. PERINO: As you said, April, this was at a training facility -- okay? And let's just see what -- the investigation comes out. I don't think I've ever heard any complaint about how the U.S. Secret Service has performed in protecting any of the people that they are supposed to protect, from the President to Secretary Rice, and I certainly don't think I've heard any complaints from the Obama campaign.

Q Dana, I want to ask a couple quick things on Cuba.

MS. PERINO: Okay.

Q The policy change allowing Americans to send cell phones to family members in Cuba -- are you sure that if people send these phones, that they'll work, or are you just allowing a change and hoping that they'll work?

MS. PERINO: I'll refer you to what -- earlier today in the briefing room that Dan Fisk said that we do believe that they would work. And I think what's important here is that the President is saying, all right, Raul, if you say that you're going to allow people to have cell phones, let's actually really let them have them. As Dan was saying this morning, the average income -- monthly income for a Cuban is $12, and a cell phone is about $120 plus the service plus the activation fee. So they're completely out of reach for the majority of people in Cuba.

What the President wants to do is say, let's call you out on that. If you are serious about allowing people to have a cell phone, let's make sure that they can actually have them and use them. And so that's what we're trying to do here.

Q So how will they get service if they can't afford it? I mean, does the government have to allow it?

MS. PERINO: What he said -- what Dan said this morning is that included in this change is not only do you allow for the device to be sent, but that American -- Cuban Americans who are living here in America could pay for the service, as well.

Q And you have confidence that would work?

MS. PERINO: As far as I know, from what was said this morning, yes.

Q Well, how do you know it would work on the Cuban network? Isn't this just a case of the President trying to call their bluff for the propaganda advantage? There's no --

MS. PERINO: I'm sure that this is all given consideration. And Dan Fisk this morning -- I don't have any other information except for what the expert said this morning, that he believed it would work. Certainly this is something that would have to be taken into consideration in a policy process. I'm sure it was, and I'll see if there's any more I can get for you.

Roger.

Q Do you have a little preview on the Fort Bragg speech tomorrow -- main message? What's he going to talk about? Is he going to talk about the supplemental funding, for example?

MS. PERINO: No, this is much more -- let me go back and look at the drafts; they've been moving through the system and I saw an early one earlier in the week. This is really about a slightly -- giving an update on where we are in Iraq, but mostly to thank the troops for their service and to welcome them back. These are troops that are returning on success, so the President will spend a little time with them. In addition to that, the President will spend time at a memorial service with families of the fallen before returning home.

Q But nothing on the legislation going on --

MS. PERINO: Let me just take a look. I don't recall from the read that I had two days ago, so I'll take a look. But obviously the President agrees with Director Nussle that the Congress needs to get its work done. They're going to blow past this self-imposed deadline. And there's another one -- there's another recess coming up in between. We don't have very much time for them to get their work done, and the time -- time is of the essence. And Secretary Gates has talked about how urgent the need is.

Mark.

Q Yes, Dana, back to Cuba. If Americans are now able to send phones to a place they couldn't send phones before, and send money for a service that they couldn't send money, how is that not a loosening of the embargo?

MS. PERINO: Well, I think, remember, that this is a changing of the existing regulations. There's -- the embargo is based on doing business because the regime makes you do business with just the regime, and the money doesn't get passed on to the people who are living in Cuba. There is already an existing regulation -- and I don't have all the details at my fingertips -- that allows for gift parcels to be sent from Cuban Americans to their families back in Cuba. What this did is allow for, if you were putting together a care package, to put a cell phone in it, as well. That has not been allowed before.

Q But it is being allowed now. So that's not a loosening?

MS. PERINO: What I just said is -- no, I think it's separate from the embargo. That's how I would describe it.

Q One other question, too, about the money. In order to get service in Cuba, presumably you have to pay the state-run Cuban phone service provider. Are Americans not going to be then subsidizing the regime by paying money to that provider?

MS. PERINO: Let me go and back and see how it will work because what -- that doesn't correspond with what Dan said this morning at the gaggle. So I'll go back and find out in terms of where they believe the service is paid for.

Q I don't think he was clear --

MS. PERINO: I'm sorry?

Q I just said, I don't think he was clear on that point.

MS. PERINO: Right, and I don't have any other information, so let me go back, and then I'll get back to you.

Kate.

Q That was going to be my question. So basically, it's just not clear --

MS. PERINO: We'll get back to you as soon as I get back.

Toby.

Q On the Israel-Syria talks.

MS. PERINO: Yes.

Q Earlier you said that the United States had no objection to them. Do you actually support Israel and Syria having these kinds of talks? And what are you hoping comes from them?

MS. PERINO: The decision for Israel to have conversations and discussions with Syria was made by Israel, a sovereign state. They had kept us apprised from the beginning of the initiative, so earlier today I was asked if we were surprised, and no, we were not. We believe that progress toward peace in the region would be certainly welcome. And the President recognizes that it will need to be a comprehensive peace. Israel is going to need to have good relations with their neighbors. So there needs to be good relations between Israel and their Palestinian neighbors, Israel and their Syrian neighbors, and Israel and their Lebanese neighbors. And issues such as Shebaa Farms when it comes to Lebanon are going to have to be resolved if we are going to have a comprehensive peace in the Middle East.

What we hope is that this is a forum to address various concerns that we all share about Syria -- the United States, Israelis and many others -- in regards to Syria's support for Hamas and Hezbollah, the training and funding of terrorists that belong to those two organizations. We believe it could help to help us further isolate Iran so that we could get a position where they would verifiably suspend their nuclear enrichment program, so that we could bring them to the table and have conversations about how we integrate them into the international community.

We certainly appreciate the role that Turkey has been willing to play to mediate these discussions. And then Israel will keep us apprised as they are ongoing. I don't have a lot of detail as to all that they're communicating through the Turkish delegation with, but we did know about it. We do believe that we're going to have to have Israel achieve a relationship with their neighbors to the point where they can function as a state and have security in their democracy.

Les.

Q Thank you, Dana.

MS. PERINO: Just one question, since you already had one.

Q Scott Stanzel, during Monday's briefing, spoke of the need to expand oil exploration in ANWR, the Outer Continental Shelf, which columnist Cal Thomas notes has an estimated 86 billion barrels of oil and 420 trillion cubic feet of natural gas. But President Clinton vetoed exploration in the Arctic National Wildlife Refuge. And my question: Does the President believe that this veto compares to those claims of environmentalists that the Alaska pipeline would destroy the caribou?

MS. PERINO: I don't know -- I'd have to consult Scott Stanzel on that.

Q Beg your pardon?

MS. PERINO: I was kidding. There's no room for humor. (Laughter.)

Q There is room for humor. I'd be delighted to have humor.

MS. PERINO: Not in this room. (Laughter.) Look, our position on why we need to increase domestic exploration and production here in our own country is well known. It is critical if we are going to send a signal to the world market that we are serious about becoming more self-sufficient in our own country. And concerns about the caribou I believe have been taken into consideration, and that we have demonstrated that we have the technologies to be able to drill in a way that would protect the environment -- not only the natural resources there, but also the caribou.

Q Listen, I didn't know that asking that nice gentleman -- I just have one other, just this one time. Just this one time.

MS. PERINO: All right, last one, please. Last one.

Q I appreciate it. Reuters reports the House of Representatives voted 324-84 to have the Justice Department sue OPEC --

MS. PERINO: That's seems like a really large Congress. (Laughter.)

Q -- for limiting oil supplies and colluding on prices. And my question: Does the President believe the Senate will not follow the House in a similar veto-proof vote? And if not, why not?

MS. PERINO: I don't know.

Q He wrote the right numbers, he just said it wrong.

MS. PERINO: Did he? Okay. (Laughter.)

Q Thanks.

END 1:13 P.M. EDT For Immediate Release May 21, 2008

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Tuesday, May 20, 2008

President's Un-edited Interview with Richard Engel Today Show NBC VIDEO


Full text transcript follows Counselor Gillespie's statement To View The Edited Version Of NBC News' Interview, Click Here
Statement by Counselor to the President Ed Gillespie on President Bush's Interview with Richard Engel

NBC News responded to our objection to their editorial decision to misleadingly edit the President's interview with Richard Engel as aired on NBC Nightly News and The Today Show by noting it was available in its entirety on the MSNBC website. This misses the point.

While we appreciate that viewers can visit the MSNBC website to see how NBC News edited the interview to completely alter the nature of the President's answer, we know that most will not - it's simply absurd for people to have to log onto the internet and stream video to get accurate information from NBC News.

We also look forward to hearing their response to our additional concerns about their labeling Iraq as a "civil war", and if they have reason not to believe official economic data. # # #

RELATED: A letter from Counselor to the President Ed Gillespie to NBC News President Steve Capus

Interview of the President by Richard Engel, NBC News Hyatt Regency Sharm el Sheikh
Sharm el Sheikh, Egypt

2:02 P.M. (Local)

Q Mr. President, thank you very much for joining us.

THE PRESIDENT: Thank you, sir.

Q In front of the Israeli palm at the Knesset you said that negotiating with Iran is pointless -- and then you went further, you saying -- you said that it was appeasement. Were you referring to Senator Barak Obama? He certainly thought you were.

THE PRESIDENT: You know, my policies haven't changed, but evidently the political calendar has. People need to read the speech. You didn't get it exactly right, either. What I said was is that we need to take the words of people seriously. And when, you know, a leader of Iran says that they want to destroy Israel, you've got to take those words seriously. And if you don't take them seriously, then it harkens back to a day when we didn't take other words seriously. It was fitting that I talked about not taking the words of Adolph Hitler seriously on the floor of the Knesset. But I also talked about the need to defend Israel, the need to not negotiate with the likes of al Qaeda, Hezbollah and Hamas. And the need to make sure Iran doesn't get a nuclear weapon.

But I also talked about a vision of what's possible in the Middle East.

Q Repeatedly you've talked about Iran and that you don't want to see Iran develop a nuclear weapon. How far away do you think Iran is from developing a nuclear capability?

THE PRESIDENT: You know, Richard, I don't want to speculate -- and there's a lot of speculation. But one thing is for certain -- we need to prevent them from learning how to enrich uranium. And I have made it clear to the Iranians that there is a seat at the table for them if they would verifiably suspend their enrichment. And if not, we'll continue to rally the world to isolate them.

Q You've been rallying the world. Have you had some success on this Arab tour to try and -- and Israeli tour -- to mobilize this community against Iran? Is that part of your mission?

THE PRESIDENT: No, it's not so much -- actually, the place where I'm spending time, in terms of dealing with serious economic isolation is with our European friends -- they're the ones who have had significant trade with the Iranians. We're dealing with it not only in goods and services, trying to convince them to hold back goods and services until there's verifiable suspension, but also dealing with Iranian finances.

I don't have to spend too much time in the world, in this part of the world creating concerns about Iran -- there is big concern about Iran given the fact that Hezbollah is destabilizing Lebanon, Hamas is trying to prevent the creation of a Palestinian state, and of course Iranian action inside of Iraq.

Q A lot of Iran's empowerment is a result of the war in Iraq. How do you feel that Iran is -- its position in the world is rising because of your actions in Iraq?

THE PRESIDENT: See, I'm not so sure I agree with that. That's a premise I don't necessarily agree with. As a matter of fact, I think Iran is troubled by the fact that a young democracy is growing in Iraq. You know, this notion about somehow if Saddam Hussein were in power everything would be fine in the Middle East is a ludicrous notion. Saddam Hussein was a sponsor of terror -- and can you imagine what it'd be like to see an arms race between Saddam Hussein and Ahmadinejad, in terms of creating instability in the Middle East? As a matter of fact, the way to ultimately defeat those who use terror to destabilize young democracies is to help the young democracies succeed.

Q I've watched Iran's influence grow in Iraq. It's been very steady over the years. What are you going to do to try and counteract Iran's influence?

THE PRESIDENT: Well, Basra, for example, we stood by the Prime Minister's decision to move into Basra and to continue to encourage the Prime Minister to go after Shia criminals and Shia armed militias that are doing harm to the average Iraqi -- and at the same time encourage them to use some of the Iraqi wealth to improve conditions of life. And that's what's happening. Basra is -- it's still obviously got work to be done, but it was a successful operation, as you know better than me, he's now heading into Sadr City -- "he," the Iraqi government -- all aiming to protect innocent people from people who are operating outside the law. And to the extent that those are folks who are supported by Iran, it will serve as a defeat to Iran.

Iraq is changing. You know it better than anybody, you've been spending a lot of time there. And it's in the interest of the United States that we help it continue to change to the better.

Q You talked about Iran being a major threat to American policies in the region -- with Hamas, Hezbollah, militia groups in Iraq. Do you intend to finish your term in office with a military action of some kind against Iran?

THE PRESIDENT: Richard, that's highly speculative. I've always made it clear that options are on the table. But, you know, the biggest weapon we have against those who can't stand freedom is the advance of freedom. I'm going to give a speech here in a minute that talks about the need to advance the freedom agenda in the Middle East.

Iran is a threat to people who want to live in peace, that's what they've clearly shown. I mean, the interesting thing in Lebanon is that Hezbollah, which had sold itself as a protector against Israel, all of a sudden turned its weapons on the people of Lebanon -- the true colors. And sometimes in life there needs to be clarity in order for people to rally to solve a problem.

So the best way to deal with the Iranians in the Middle East is to help the young democracy of Lebanon survive, is to stand up a Palestinian state -- obviously subject to the road map, which we intend to do before my presidency [ends], and succeed in Iraq.

Q How are you going to prevent Hezbollah from taking over in Lebanon? They had a small coup, the army didn't do anything, and they proved that they are clearly in control of the streets when they want to be.

THE PRESIDENT: Well, that's a problem, and obviously one thing to do is to help strengthen the Lebanese army, which I sent General Dempsey to Beirut -- I don't know if he was there when you were there, but he was there precisely to help inventory the Lebanese army -- is to make it clear to Prime Minister Siniora we stand strongly with you. We'll see what happens out of this agreement and whether it sticks or not. But we strongly support the March 14th coalition.

Perhaps one way to help deal with the situation is to get the U.N. tribunal up and running, that's investigating the death of Mr. Hariri. But, you know, no question it's a tough situation. It's not as if Lebanon has been a stable situation forever, either. I mean, this is -- and yet the Lebanese people deserve a peaceful democracy and our aim is to help them.

Q It sounded like when you were addressing the Israeli Knesset you gave a green light to Israel to take action against Hezbollah and Hamas.

THE PRESIDENT: Richard, you can read into it what you want to read into it. That certainly wasn't my intention. My intention was to say that all of us need to understand that radical groups are the threat to peace -- whether it be al Qaeda or Hamas or Hezbollah.

Q Negotiations with Iran -- is that appeasement, is that like appeasing Adolph Hitler?

THE PRESIDENT: My position, Richard, all along has been that if the Iranians verifiably suspend their enrichment -- which will be a key measure to stop them from gaining the know-how to build a weapon -- then they can come to the table, and the United States will be at the table. That's been a position of my administration for gosh, I can't remember how many years, but it's a clear position. We've stated it over and over again.

But I've also said that if they choose not to do that -- verifiably suspend -- we will continue to rally the world to isolate the Iranians. And it is having an effect inside their country. There's a better way forward for the Iranian people than to be isolated. And their leaders just need to make better choices.

Q In Iraq I recently met a soldier. He was medevac'd out on his first tour; he's now back on his second tour -- was already medevac'd to the green zone. How many more tours do these soldiers have to do? Is there an exit strategy for Iraq?

THE PRESIDENT: Well, first of all, the fact that this person volunteered again speaks to the great bravery of our troops. And we need to honor them and will honor them. And one way to do so is to have more set tours -- in for 12, out for 12.

The other thing is to take care of their families, and when the veterans take care of the vets. You know, the fact that you told me about a guy who got medevac'd twice only says to me that we've got a courageous military.

In terms of success, we're returning troops on success. You might remember I had to make a difficult choice to put more troops in -- those troops are coming home by July. And then of course, General Petraeus and his successor will assess the situation on the ground and we will end up having the troops necessary to help the Iraqis succeed.

Q So it doesn't sound like there's an end anytime soon. It just sounds like we need to support them as much as we can and keep them there for as long as we can.

THE PRESIDENT: I think the end, Richard, is, I told you, return on success. The more successful Iraq is, the fewer troops we'll need. And there's no question Iraq is becoming successful: the security situation has changed, the political situation is a lot better, the economic situation -- unlike other parts of this world -- are pretty strong. And now the question is are they going to be able to get the resources in an efficient way to the people, so the people see the benefits of democracy -- and they're doing a better job of that.

Q You think -- you still view Iraq as a success? Because on the ground it looks very bleak -- people still want to leave the country, and people are --

THE PRESIDENT: Well, that's interesting you said that -- that's a little different from the surveys I've seen and a little different from the attitude of the actual Iraqis I've talked to, but you're entitled to your opinion.

Q The Iraqi government, I think, has one position, which is that it's seeing a lot of progress. But Sadr City has been up in revolt. There's major battles in Mosul. I was just in a major firefight in Sadr City hit by an EFP. It is still very much a war zone.

THE PRESIDENT: Richard, no question it's violent. But there's no question that the Iraqi government are dealing with the violent people. It's like this attitude about Basra. I can remember, you know, a good reporter saying "Basra is a disaster." I'm not suggesting you did, but people said "it's a disaster." And lo and behold, it wasn't. It was successful.

What you're watching is an Iraqi government take care of extremists in their midst so that a democracy can survive. And it's essential that the democracy survive for our own security, as well as the stability of the Middle East.

Q You've talked about having an Israeli-Palestinian peace agreement by the end of this year.

THE PRESIDENT: Right.

Q What gives you hope that that is not overly ambitious? Why do you -- why do you think that's possible?

THE PRESIDENT: Because, first of all, people in Israel understand that in order for them to have long-term security there has to be a democratic state. People in Palestine want a democratic state. Now, there are people opposing that -- Hamas, in particular, trying to create the violence and fear to stop the state from progressing.

Secondly, I know their leaders. I spent a lot of time with Prime Minister Olmert and President Abbas. They are dedicated to doing the hard work. And thirdly, I've seen the progress being made on issues like --

Q What about Hamas, Hamas was elected --

THE PRESIDENT: Excuse me for a minute, please -- on issues like the border and refugees and security. And yes, Hamas was elected and they=ve done a disaster of running Gaza. And there will be an interesting contrast between the vision of Hamas and their record, and the vision of President Abbas and Prime Minister Fayyad and a Palestinian state. And it's that vision, the competing visions that will be put forth to the Palestinian people at some time. And I believe a state will exist and I know it's necessary for peace in the Middle East.

And I think -- I feel good that we can get it defined during my presidency and implemented subject to road map.

Q Going back to your vision and the message you've been pushing about democracy and supporting moderates across the region -- if you look back over the last several years, the Middle East that you'll be handing over to the next President is deeply problematic: You have Hamas in power; Hezbollah empowered, taking to the streets, more -- stronger than the government; Iran empowered, Iraq still at war. What region are you handing over?

THE PRESIDENT: Richard, those folks were always around. They were here. What we're handing over is a Middle East that, one, recognizes the problems and the world recognizes them. There's clarity as to what the problems are. To say all of a sudden that Hamas showed up is just not factual. They have been around and they have been dangerous. Hezbollah has been around and they are dangerous. That's why we put them on the terrorist list before my presidency.

And what you're beginning to see is new democracies. You'll see a Palestinian state. You'll see Iraq emerging. And it doesn't happen overnight. The freedom movement is not a instant. The freedom movement is a challenge to a system that said the status quo is acceptable --when underneath was brewing all kinds of resentments.

We've taken on al Qaeda in the Middle East. It was from here that they recruited people to launch attacks. And why they're still existing, they've been hurt, and they're going to be hurt even more as liberty advances and freedom advances.

Q Do you believe that Iran is now more of a threat in Iraq than al Qaeda?

THE PRESIDENT: You know, that's an interesting question. I think they've both been seriously hurt in Iraq. You know, al Qaeda thought they were going to have a stronghold in Anbar province, they proudly proclaimed this was going to be their capital from which they were going to launch missions around the world and throughout the region -- and they failed.

And in Iran* [sic], Shia groups funded by Iran tried to take on the government and the government is succeeding -- but it's going to take a while.

Q The war on terrorism has been the centerpiece of your presidency. Many people say that it has not made the world safer, that it has created more radicals, that there are more people in this part of the world who want to attack the United States.

THE PRESIDENT: That theory says by confronting the people that killed us, therefore there's going to be more -- therefore we shouldn't confront them?

Q Or confronting -- creating more people who want to kill us, one could also say.

THE PRESIDENT: Well, you can say that, but the truth of the matter is there's fewer al Qaeda leaders, the people are on the run; they're having more trouble recruiting in the Middle East; Saudi Arabia, our partner, has gone after al Qaeda; people now see al Qaeda for what it is, which is a group of extremists and radicals who preach nothing but hate. And no, I just -- it's just the beehive theory -- we should have just let the beehive sit there and hope the bees don't come out of the hive?

My attitude is the United States must stay on the offense against al Qaeda -- two ways. One from --

Q Smash the bees --

THE PRESIDENT: -- two ways --

Q -- in the hive and let them spread?

THE PRESIDENT: Excuse me for a minute, Richard. Two ways. One, find them and bring them to justice -- what we're doing. And two, offer freedom as an alternative for their vision. And somehow to suggest the bees would stay in the hive is naïve -- they didn't stay in the hive when they came and killed 3,000 of our citizens.

Q Thank you very much for your time, Mr. President.

THE PRESIDENT: Yes, sir.

END 2:16 P.M. (Local)

* Iraq

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