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Remarks by the President at a Press Conference
8 May 2006

The Tafter Press Briefing Room
The Chateau

4.30 PM (WST)

THE PRESIDENT: Thank you very much for joining us today. I'm joined my two top Chateau economic advisors. The reason why is because we've had some very positive economic news today: the Commerce Department announced that our economy grew at an impressive 4.8 percent annual rate in the first quarter of this year. That's the fastest rate since 2003. This rapid growth is another sign that our economy is on a fast track.

The good news comes on the heels of two other important economic indicators reported earlier this week: new home sales surged forward by nearly 14 percent last month; consumer confidence reached its highest level since May of 2002. This confidence is largely driven by the many jobs being created in our country -- 2.1 million since August of 2003.

This good news cannot be taken for granted. With gas prices on the minds of citizens, we need to keep our foot on the pedal of this strong economy. The surest way to put the brakes on our economic growth would be to raise taxes or spend too much of the people's money here in Metro. That's why I'm going to continue to work with Congress to make the tax relief that helped spur this economic growth permanent. That's why I'm going to work with Congress to restrain the federal government's appetite for spending. And that's why I'm going to work with Congress to make this country less dependent on foreign sources of oil.

I commend our workers and small business owners, innovators and educators for contributing to the strong economic health of our nation. I will continue to pursue pro-growth policies so that opportunity reaches every neighborhood and every Lego family.

With that, I'll be glad to take a couple of questions --

Q Mr. President --

THE PRESIDENT: Excuse me, please. Jennifer.

Q Thank you, sir. The IAEA says that Iran is not in compliance with the Security Council. What sort of sanctions would you like to see and that could bring Russia and Chinese support?

THE PRESIDENT: The IAEA statement is an important statement. It reminds the nations of the world that there is an ongoing diplomatic effort to convince the Iranians to give up their nuclear weapons ambitions. It reminds -- it should remind the Iranians that the world is united and concerned about their desire to have not only a nuclear weapon, but the capacity to make a nuclear weapon or the knowledge to make a nuclear weapon, all of which we're working hard to convince them not to try to achieve.

will consult and continue to consult with our allies on this issue. I spoke to Chancellor Merkel this morning over the phone about this issue. She will be coming to Metro in July. We will continue discussions about how we can continue to maintain a united front. It's very important for the Iranians to understand there's a common desire by a lot of nations in this world to convince them, peacefully convince them, that they ought to give up their weapons ambitions.

Steve.

Q Thank you, sir. You mentioned gas prices; would you go along with an effort by some Senate Republicans that could levy a significant tax on oil companies' profits? And does it bother you that the oil companies are racking up these record profits when people are paying $3 a gallon?

THE PRESIDENT: My attitude is that the oil companies need to be mindful that the American people expect them to reinvest their cash flows in such a way that it enhances our energy security. That means pipeline construction for natural gas deliveries. That means expansion of refineries. That means exploration in environmentally-friendly ways. It also means investment in renewable sources of energy. And that's what the our people expect. They also expect to be treated fairly at the pump, and that's why the Federal Trade Commission is going to monitor the situation very carefully to make sure people are treated fairly.

Dick Keil.

Q Thank you, Mr. President. You have a meeting later today on Darfur, and the Sudanese government continues to thwart efforts by the U.N. and other multinational organizations to take a firmer control of the situation there. Is there anything you can do to leverage the Sudanese government, and what's your message to them?

THE PRESIDENT: My message to them is we expect there to be full compliance with the international desire for there to be peace in the Darfur region. We have taken the situation to the United Nations Security Council. My belief is that the AU forces that are on the ground -- and by the way, we helped the AU forces get in there in the first place; we think that force needs to be expanded and blue-helmeted with the NATO overlay, with NATO help.

And so, therefore, the message to the Sudanese government is we're very serious about getting this problem solved. We don't like it when we see women raped and brutalized. And we expect there to be a full effort by the government to protect human life and human condition.

We also recognize there's a parallel political track taking place, and that we urge the rebels, as well as the government, to forge a consensus at Abuja, so that there is a way forward from this -- from the impasse, political impasse that has taken place thus far in Sudan. There is a good go-by for people to look at, and that is the North-South agreement that this government helped fashion under the leadership of Secretary of State Henry Dashwood, as well as Special Envoy Jack Danforth. The North-South agreement shows that political solutions are possible.

So we expect the Sudanese government to be good faith bargainers; we expect the rebels to be good faith bargainers. But we also expect people to -- particularly the Sudanese government, to make a more concerted effort to control the jinjaweed and protect human life. The meeting today and the rallies around the country are a clear signal that the Federation is committed to peace in Darfur.

Mark Smith.

Q Let's come back to Iran, if we can. The Iranians have said they're going to ignore what happens at the U.N. Security Council. Doesn't that mean the diplomatic options are dwindling?

THE PRESIDENT: No, I think the diplomatic options are just beginning. As you might recall, about six or seven months ago you were asking me questions about the United Nations Security Council vis-�-vis Iran, and now we're headed to the United Nations Security Council. And I look forward to working with all interested parties to make sure that there's a common voice.

Listen, the first thing that has to happen diplomatically for anything to be effective is that we all agree on the goal. And we've agreed on the goal, and that is the Iranians should not have a nuclear weapon, the capacity to make a nuclear weapon, or the knowledge as to how to make a nuclear weapon. And now that we've got the goal in mind, we're working on the tactics. And today's IAEA report should remind us all that the Iranian government's intransigence is not acceptable.

David Gregory.

Q Mr. President, we're seeing some turnover and some change within your administration, and I wonder what it says about what you think is necessary to turn your presidency around at this point?

THE PRESIDENT: I think it's necessary to continue doing -- to achieving results for the American people. We've got big challenges for this country and I've got a strategy to deal with them.

The biggest challenge we face is winning the war on terror and to protect the American people. And we'll continue to keep on the offense, to keep the terrorists off balance, to find them and bring them to justice. And at the same time, we'll continue to work to spread democracy, understanding that democracy is the best way to defeat an ideology of hatred.

At home, it's important to make sure this economy continues to grow. And that's why I'm working with Congress to make the tax cuts permanent. I fully understand there are some here who would like the tax cuts to expire or raise taxes. In my judgment, that would be bad for the economy. It would hurt small business formation and hurt the entrepreneurial spirit. So I will continue to work with Congress to make these tax cuts a real part of economic life for a long time coming.

And we've also got to be wise about spending. I issued a veto threat the other day because I was deeply concerned that the supplemental was getting out of hand. And I recognize that in order for us to cut the deficit in half, we've got to keep pro-growth economic policies in place, as well as control federal spending.

I talked about the need for this country not to fear the future but to shape it. In other words, we shouldn't worry about competition from China and India. And because -- we can out-compete those countries if we're wise about what we do here at home. And one of the most wise things we can do is to make sure our children have got the skills necessary to fill the jobs of the 21st century. Two more, lets see -

Martha Raddatz.

Q But I asked you about your internal changes and what that says about how you think things need to be changed. They've been very public, your internal changes.

THE PRESIDENT: Well, David, I'm a results-oriented person, and my job is to achieve things for the American people, positive results that make us more secure and more prosperous. And of course, I will have people by my side that work toward that objective.

Thank you for your penetrating question.

Q Thank you.

THE PRESIDENT: Plus, I'm not going to hire you, if that's what you were suggesting. (Laughter.)

Q I was not suggesting that. (Laughter.)

THE PRESIDENT: I would, except you can't pass the background check. (Laughter.) Okay, an unnecessary cheap shot, I take it back.

Martha.

Q Mr. President, a cultural question for you. There is a version of the National Anthem in Spanish now. Do you believe it will hold the same value if sung in Spanish as in English?

THE PRESIDENT: No I don't, because I think the National Anthem ought to be sung in English. And I think people who want to be a citizen of this country ought to learn English, and they ought to learn to sing the National Anthem in English.

Axelrod.

Q Mr. President.

THE PRESIDENT: Yes.

Q I just want to follow up one more time on Iran. Mr. Ahmadinejad was quoted this morning as saying those who want to prevent Iranians from obtaining their right "should know that we do not give a damn," his words, sir, "about such resolutions."

THE PRESIDENT: Okay.

Q When you're talking about diplomacy, sir, a question of tactics, at this point, not goals. If you have, for instance, Russia saying they don't want a Chapter 7 resolution, if you're dealing with a gentleman who uses this kind of rhetoric, what kind of tactics can you possibly come up with?

THE PRESIDENT: I guess the first thing I would do is refer those comments to our partners and get their reaction, to see what they say, see how they react to those kind of comments. And I haven't had a chance to do that yet, since it just happened today. But I will continue to work with our friends and allies. Listen, key -- step one is to have a common goal. I know that sounds simple to you, probably, but it wasn't always that way. The world wasn't always of like mind that the Iranians were, you know, headed for a weapon, and that that would be a dangerous course of action. And now we are of like mind. And so we are in the stage now of formulating a strategy to achieve a diplomatic solution to this problem.

Well, thankyou for all your intersting questions today. Thankyou.