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Weapons of Mass Destruction (WMD)

06 January 2003

Bush Calls Saddam Hussein Accusation "Discouraging News"

(Says still time for Iraq to comply; also discusses North Korea)
(1970)
President Bush January 6 characterized as "discouraging news" a
statement earlier in the day by Saddam Hussein alleging that United
Nations weapons inspectors in Iraq are engaged in intelligence work.
Bush spoke with reporters following a meeting with his Cabinet.
"When you combine that (statement) with the fact that his declaration
(that Iraq has no weapons of mass destruction) was clearly deficient,
it is discouraging news for those of us who want to resolve this issue
peacefully," Bush said.
"And thus far, it looks like he hasn't complied," with the United
Nations resolutions to disarm his nation of weapons of mass
destruction, Bush said.
"But he's got time. And we continue to call upon Saddam Hussein to
listen to what the world is saying. Not just the United States but the
entire world expects Saddam Hussein to disarm."
On North Korea, President Bush repeated that the United States has "no
intention of invading North Korea," but he said the United States
expects North Korea to adhere to its obligations.
North Korea said it "would not develop nuclear weapons. And we expect
people to keep their word," Bush said.
"And for Kim Jong Il to be a credible member of the world community,
he's got to understand that he's got to do what he says he's going to
do," Bush said, adding that he believes the situation with North Korea
"will be resolved peacefully, and I believe it can be resolved
diplomatically."
Bush also was questioned about his economic plan for the nation that
he is to announce January 7 in a speech in Chicago, Illinois.
Following is the transcript of the question and answer session:
(begin transcript)
THE WHITE HOUSE
Office of the Press Secretary
January 6, 2003
REMARKS BY THE PRESIDENT IN PHOTO OPPORTUNITY WITH HIS CABINET
The Cabinet Room
4:11 P.M. EST
THE PRESIDENT: I have an opening statement here and I'll answer a
couple of questions.
I want to thank my Cabinet for coming. This is the 15th Cabinet
meeting we've had since we were sworn in, and I appreciate each of you
working so hard on behalf of the American people.
Today we talked about the issues facing our country. The war on terror
continues. We will hunt down the terrorists wherever they hide. We'll
do everything we can to secure the homeland.
We heard a briefing today from Tom Ridge about how the reorganization
of the Homeland Security Department is going. It's very important for
Congress and the Senate to confirm Tom as quickly as possible, and to
confirm his team, so they can get doing the work of the American
people.
Here at home, I hope the Congress will extend the unemployment
benefits for -- for the American workers who don't have a job -- soon,
as quickly as possible. As well, it's important for Congress to pass
the '03 appropriations bills. We're living under continuing
resolutions. The agency heads here are -- want to have their budgets
finalized so that they can have certainty in the appropriations with
which they have to work. Congress has got work to do.
Tomorrow I'm going to talk about how to continue the economic growth
that we have, to ensure our economy is as robust as possible. I look
forward to the speech in Chicago, but it is a plan that speaks
directly to the American citizen that -- to do everything we can to
revitalize the small business sector, to make sure it remains strong
so people can find work. We've put together a fine economic team. I
hope the Congress, the Senate acts quickly to confirm John Snow and
Bill Donaldson. They need to move quickly.
I look forward to working with the leadership in the House and the
Senate. Doesn't matter who's in charge, I will work with them.
Obviously, we're pleased that Senator Frist will be leading the
Senate. We'll work with him; we'll continue to work with Senator
Daschle. And we'll work with Speaker Hastert, Leader DeLay and
Congressman Pelosi, as well.
We've got a job to do for the American people, and we'll do that job
-- to make sure the country is secure, to win the war on terror, and
make sure people can find work.
Let me answer some questions. Sandra, this is your last day, I
understand, and therefore, you get to ask the only question -- I mean,
you get to ask -- (laughter.)
Q: The first question to the last? You said that your economic plan
will speak directly to the American citizen. The Democrats say that it
speaks most directly to the richest American taxpayers. How do you
answer that criticism and the charge that you're just going to lead to
deeper deficits?
THE PRESIDENT: Well, the critics hadn't seen the plan. This is a plan
that provides tax relief to the working citizens. It's a plan that is
a very fair plan. It's a plan that recognizes when somebody has more
of their own money, they're likely to spend it, which creates more
jobs.
Our administration is concerned about deficits, and the way they deal
with deficits is you want to control spending. And I hope Congress
lives up to their words. When they talk about deficits, they can join
us in making sure we don't overspend. They can join us and make sure
that the appropriations process is focused on those issues that --
those items that are absolutely necessary to the American people.
I'm pleased that members of the Congress are talking about deficits.
It means they understand their obligations not to overspend the
people's money. And the second way to deal with deficits is to
encourage revenue growth. And the way to encourage revenue growth is
to encourage the private sector to grow. And tomorrow I'll be talking
about ways to encourage the growth of the private sector.
Steve.
Q: Sir, with three weeks to go until the U.N. inspectors report back,
are you seeing any signs of compliance by Iraq? Saddam says it's
carrying out intelligence work.
THE PRESIDENT: Well, I thought that was an interesting statement on
his part. When you combine that with the fact that his declaration was
clearly deficient, it is discouraging news for those of us who want to
resolve this issue peacefully.
He has the obligation to disarm. For the sake of peace, he must
disarm. The United Nations has clearly said that. It is in our
nation's interest that he disarm. He is a threat to the American
people. He's a threat to our friends and neighbors in the Middle East.
He is a person who has used weapons of mass destruction. And so,
therefore, the world has said to Saddam, you won't have any weapons of
mass destruction, get rid of them. And thus far, it looks like he
hasn't complied.
But he's got time. And we continue to call upon Saddam Hussein to
listen to what the world is saying. Not just the United States, but
the entire world expects Saddam Hussein to disarm.
Dick -- Stretch.
Q: Mr. President, changing the taxation on stock dividends, a lot of
analysts say that, in and of itself, would not have a particularly
stimulative effect for the economy. Do you disagree that? And if in
the end you get a benefit yourself, is it money that you would then
direct to be reinvested, or is it money that you might spend?
THE PRESIDENT: If it -- I didn't hear the second part of your
question. If it -- the hypothetical part of the question, which I'm
probably not going to answer. (Laughter.)
Q: If Congress does your bidding and you get benefits from dividends
that aren't being taxed, would you use that money to reinvest or would
you spend it on consumer goods or consumer items?
THE PRESIDENT: Me, personally?
Q: You, personally.
THE PRESIDENT: My money is in a blind trust, Stretch, so I don't know
if I've got any dividends.
Q: If you did.
THE PRESIDENT: Oh, if I did.  (Laughter.)
Q: Not many of us have dividends these days, but  -- 
THE PRESIDENT: Well, it's interesting you asked that question. A lot
of people get dividends, see. And that's one of the reasons why we're
analyzing this issue of taxing things twice, particularly dividends.
Most seniors -- over 50 percent of the seniors receive dividends.
First of all, it's unfair to tax money twice. There's a principle
involved. The government ought to be content with taxing revenue
streams or profits one time, not twice. And in dividends, we tax the
corporate profit, and then we tax the money being sent to the
shareholder. And that doesn't make any sense; that's unfair. That's
bad public policy. Many of the shareholders that pay the taxes are
senior citizens. These are citizens who have retired and senior
citizens who can use that money.
Thirdly, the reduction in taxes on dividends will encourage capital
flows, capital flows into the marketplace. It will -- it will
encourage investment, and that's what we want. We want to encourage
investment activity. Investment means jobs.
And so I'm not going to specifically tell you what's in the speech
tomorrow, though it looks like some others might have already done
that. I do encourage you to listen to it. But I encourage you to look
at the entire package. It's a package that's shaped for economic
vitality and growth.
Listen, we're doing fine. Tomorrow, you'll hear me say this economy is
one of the strongest in the world. But what we believe is we can be
stronger. And we also know that when somebody is looking for work who
wants to work means we've got to continue to try to stimulate job
growth.
Now, we don't believe it's the role of government to manage the
economy. We've got great faith in the private sector. And so we're
going to create the environment for the private sector to be stronger.
That's the policy of this administration.
Sandra, good luck to you.  Thanks.
Q: Thank you, sir.
Q: Mr. President, on North Korea, sir?
THE PRESIDENT: I'll answer one on North Korea, yes, real quick.
Q: Yes, sir. What would it take for the U.S. or any other nation to
have direct talks with North Korea? And they claim to believe that the
U.S. is a threat to them.
THE PRESIDENT: Yes.
Q: What can you say?
THE PRESIDENT: Well, first of all, I went to Korea and clearly said
that the United States has no intention of invading North Korea. I
said that right there in South Korea. And in Kim Jong Il's
neighborhood, I spoke as clearly as I said, and said we won't invade
you. And I'll repeat that: We have no intention of invading North
Korea.
We expect North Korea to adhere to her obligations. She's in an
agreement with the United States; she said that she would not develop
nuclear weapons. And we expect people to keep their word. We will have
dialogue; we've had dialogue with North Korea. The Secretary of State
visited with the Deputy Foreign Minister --
SECRETARY POWELL: The Foreign Minister.
THE PRESIDENT: -- the Foreign Minister -- excuse me -- and talking is
one thing. But we expect people to honor obligations. And for Kim Jong
Il to be a credible member of the world community, he's got to
understand that he's got to do what he says he's going to do.
I believe this will be resolved peacefully, and I believe it can be
resolved diplomatically.
Thank you.
Q: Thank you, sir.
Q: What were you laughing at before we came in, sir?  (Laughter.)
THE PRESIDENT: I'm not telling. (Laughter.) I won't tell, but somebody
will leak it. (Laughter.)
(end transcript)
(Distributed by the Office of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)



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