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Weapons of Mass Destruction (WMD)


12 December 2003

Baker's Experience Will Help Promote Debt Relief for Iraq, Bush Says

White House Report, Dec. 12: Baker trip, Halliburton, the Mideast peace process, Canada

James Baker, who has served both as secretary of state and secretary of the treasury in previous administrations, is "a man of high integrity," and "enormous experience," President Bush told reporters December 12 in the Roosevelt Room, following his announcement of his choice for a new secretary of the Department of Housing and Urban Development.

"And it makes sense for him (Baker) to serve our country on an important mission, and that mission is to encourage countries to forgive debt so the Iraqi people can more easily grow a nation that is prosperous and peaceful," Bush said.

"We're fortunate to have Jim Baker agree to serve our country," Bush said.

"His mission is to go to Paris and Berlin and Moscow and London to convince these countries to forgive debt. And I'm hopeful they do forgive debt. I'm hopeful that they're willing, in some cases, to contribute for the first time to the efforts of the Iraqi citizens," Bush said.

"[I]t's in the interest of their countries that Iraq be free and peaceful. Matter of fact, it's in the interest of all countries that Iraq be peaceful and free. It makes us all more secure. Imagine what the effect is going to -- a peaceful and free Iraq is going to have in the heart of the Middle East, where there's so much violence and hatred."

Reporters were asking whether Baker's ties with some companies doing business in Iraq posed a conflict of interest in his work for the administration.

White House Press Secretary Scott McClellan told reporters at his daily briefing that Baker "is widely respected across partisan lines. He is widely respected across the country and across the world for his experience, for his expertise, for his diplomacy, and for being someone of the highest integrity.

"And Secretary Baker is someone who follows not only the letter of the law, but the spirit of the law. And he takes all appropriate steps to make sure that he is meeting the highest ethical standards," and "is fully complying [with] all laws and rules on the books, and has taken significant steps to avoid even the potential for a conflict of interest," McClellan said.

Restructuring of Iraqi debt "is a priority for us," he said, and "we're going to be looking at the entire debt burden, and that includes the United States."

BUSH SAYS HALLIBURTON SHOULD PAY BACK MONEY IF IT OVERCHARGED GOVERNMENT

President Bush, in his December 12 question and answer session with reporters, said he expects Halliburton to pay back money if indeed it overcharged the federal government on contract work in Iraq.

"I expect anybody doing business with the United States government to be transparent, and to give the taxpayers a good return on their money. That's what I expect. And if anybody is overcharging the government, we expect them to repay that money," Bush said.

An audit by the Department of Defense has found that the company may have overcharged the Army by $1.09 per gallon for nearly 57 million gallons of gasoline delivered to citizens in Iraq, senior defense officials say.

"I appreciate the Pentagon looking out after the taxpayers' money. They felt like there was an overcharge issue, they put the issue right out there on the table for everybody to see, and they're doing good work," Bush said.

"We're going to watch, we're going to make sure that as we spend the money in Iraq, that it's spent well and spent wisely. And their investigation will lay the facts out for everybody to see. And if there's an overcharge, like we think there is, we expect that money to be repaid."

Earlier, at his daily briefing for the press, White House Press Secretary Scott McClellan said President Bush "very much expects the procedures and measures that are in place for oversight purposes to be followed. And the president expects the Pentagon to get to the bottom of this."

BUSH SAYS HIS ROSE GARDEN SPEECH OUTLINES PATH TO MIDEAST PEACE

Asked to comment on the significance of Secretary of State Powell's meetings with unofficial Middle East peace negotiators despite Israel's objections, President Bush reminded reporters of his June 24, 2002, speech in the Rose Garden.

He said in that speech he "laid out exactly what I think must happen in order for us to achieve peace in the Middle East, in order for a Palestinian state to emerge that is at peace with Israel. And I haven't changed my opinion.

"Step one is for all parties to fight off terror, to stop the few from destroying the hopes of the many.

"Step two is for the Palestinians to find leadership that is willing to reject the tired old policy of the past and lead the Palestinian people to not only a democratic state, but a peaceful solution of differences. Israel must be mindful ... that they don't make decisions that make it hard to create a Palestinian state. It's in Israel's interest there be a Palestinian state. It's in the poor, suffering Palestinian people's interest there be a Palestinian state. The Arab world has got responsibilities to see that this vision be implemented," Bush said.

Regarding Powell's contacts with the unofficial negotiators, Bush said the secretary of state "meets with all kinds of people all the time. But the policy of this administration was laid out in the Rose Garden for everybody to see and everybody to listen to."

BUSH LOOKS FORWARD TO WORKING WITH CANADA'S NEW PRIME MINISTER

President Bush "very much looks forward to" working with Canada's new Prime Minister Paul Martin, White House Press Secretary McClellan said.

Martin became Canada's new Prime Minister December 12. The former Prime Minister Jean Chretien retired after many years of service.

"[T]he president wishes him well in his new position. And I'm sure that they will have an opportunity to build upon a good relationship that the United States has with Canada. And if there are issues that he wants to discuss with the president, the president would look forward to doing that.

"And Canada has certainly played an important role in the overall efforts on the war on terrorism, and we appreciate the contribution that they made or the commitment that they made at the Madrid donors' conference to the efforts going on in Iraq," McClellan said.

(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)



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