MR. BARTLETT: I don't know if we usually do a transcript of this, or not, but -- we do. This will be on the record, embargoed until the speech is delivered, because I'll be talking about specific elements of the speech to give you an opportunity to actually get ahead of the game as far as studying up and doing some homework so you can write eloquent, smart, interesting, accurate stories. I'll start by just kind of -- make some broad observations about the speech, and then we can talk a little bit about specifics in the speech. I think the best way to describe this from a broad sense is that there's been a lot of reporting and speculation about this being more of a visionary speech, a philosophical speech, a directional speech, and I think those are all accurate descriptions. But to give it a little more specificity, there have been interesting developments, obviously, in the last few years with the conduct of the war, of the challenges we face overseas, also with a dynamic economy not only here in our country, but also vis-a-vis competition in the world, and it's this type of fast-paced change and difficult moments in the war that has, in some instances, left the American people with certain fears and anxieties, which is, I think -- can be described as natural when you look at the brutality of the enemy, when you see the types of tactics, brutal tactics being used on the battlefield, whether it be in Iraq or in Afghanistan or elsewhere -- when we see the likes of a bin Laden or a Zawahiri -- that it is a stark reminder that we're a country that still is under threat, that we are a nation at war. It's also unsettling for the American people to grapple with the rising cost of energy, the rising cost of health care. The dynamic aspect of our economy where jobs are constantly being created and lost -- announcements from GM -- the rising competition of global players on the economic scene, such as China and India, all give a level of angst. And really what it comes down to is a question of what does America do about it? What is our position in the world? What is our position here at home? And the President has firmly rooted our cause both at home and abroad in aggressive American leadership in the world and here at home, in order to help protect the American people, and extend and expand our economic prosperity. But there's been an interesting debate, and the debate has happened in our country at times before. There have been isolationist tendencies and there's been protectionist tendencies. That was acutely aware, if you think about it, on the economic scene this past summer with the debate about CAFTA. Here was an issue in which there was every reason for both to have a large margin of victory in the United States Congress because of not only the economic benefits to our country for CAFTA, but also the strategic foreign policy benefits of this. Yet, it only passed by one vote. What I'm saying is, is that there are some currents that go on in our country from time to time, whether it be the tendencies of protectionism or isolationism, this debate whether we are stirring up problems overseas, if we were just to retract from the battlefield, if we weren't always provoking them, we would be safer. And that's a fundamental debate that's happening in our country. And the President has been talking about this, at least privately, with not only members of his staff, but other world leaders. And the question is whether -- he decided that he wanted to use this State of the Union as an opportunity to discuss this, and in a very extensive way. So in some respects, this State of the Union will be a bit different than past State of the Unions because it will discuss this kind of philosophical, directional debate underway. Sometimes it's the underlying debate; it's not sometimes the explicit debate that's being had of isolationism or protectionism. But what the President will do is going to directly discuss this issue, confront it and make the case in the strongest terms possible as to why it's in the United States' interest to be actively engaged in the world, to continue to fight this war on offense, but not only in the context of the war, that we can't retreat from within our borders when it comes to other duties and responsibilities we have, like fighting HIV/AIDS on the continent of Africa, or malaria -- that we have a duty and responsibility and it's in our country's own interest to do so. We also have a duty and a responsibility on the economic stage of America -- of the world to continue to maintain America's economic preeminence. And the only way to do that is to be robust in our agenda and -- as well as in our directional purpose, to maintain America's economic leadership in the world. So he's going to talk specifically about these issues, about the war on terror. He'll begin the speech -- the speech is basically broke down into three major sections. The first section, talking about foreign policy, talking about the war on terror, talking about our country's history of advancing freedom and democracy. Some of it will sound familiar to you who follow him all the time. I promise there will be no Koizumi reference in the speech. (Laughter.) But beside that, it will sound very familiar in that respect, because it is a central aspect of America's foreign policy for good reason. Read more Comment (0), Email this.

MR. BARTLETT: We're making all the bilateral contacts right now, to make sure to assuage them from any misinterpretation of an omission. (Laughter.) No. But like I said, it will be a robust defense of, and articulation of why our foreign policy and the security of the American people relies upon our government taking a very aggressive stand against the terrorists, but also a very principled stand for freedom and democracy. And he will talk specifically. He will repeat what he said in the inauguration last year, of ending tyranny in the world. This is a very noble goal. Some have said it to be too idealistic. He will specifically address that issue as to why it's practical and it's in our interests. He will talk about developments on the democracy agenda, talking specifically about the Middle East, talking about the situation with the election of -- in which Hamas had done so well recently in the Palestinian Territories. He will talk about -- at length, obviously, about developments in Iraq, our strategy in Iraq and what we're doing to prevail in Iraq. He will also mention other issues on the democracy agenda, including Egypt and Saudi Arabia. Those are all very important aspects of the democracy agenda, and he will speak to them. One point he will make very clear is that elections are not the end of the experiment of democracy, and in many respects it's the beginning. It's the real institution building that has to go hand-in-hand with elections that is critical to build the types of enduring institutions to ensure that the election is not just that, the end all, be all; it is the beginning. And he's going to be very clear about that. As I said, he will talk specifically about not only what's going on in Iraq specifically, in the broader Middle East and other foreign policy matters, as I just said. If America were to look inward and withdraw from the world, it has serious consequences for millions upon millions of people throughout the world who turn to the United States of America for moral and direct assistance, like I said, on AIDS and HIV -- HIV/AIDS, as well as malaria and other issues. So the President will call on Congress to continue to meet our commitments when it comes to helping those who need -- who are in the most desperate need of help. He will also, on the foreign policy side, talk about the aggressive steps, the necessary steps we're taking here at home to protect our country. There's a debate that is front and center, both on the Patriot Act and other aspects of what we're doing to protect the American people, and he will be very explicit, as you've heard recently, about the necessity for the actions we are taking, including the terrorist surveillance program, and the reauthorization of the Patriot Act. So that will be a key aspect. One thing -- I do want to digress for a second to talk about an overall theme before I get into more specifics, and that is -- and you've heard the President, he mentioned it yesterday in the Cabinet meeting, he's mentioned it in some recent interviews -- and that is, part of, I think, the dissatisfaction with what's going on in Washington, D.C. is coupled with the fact that the divisive tone, the partisan atmosphere that is taking root here, and some have -- observers have said it's the worst it's ever been, or it's the worst it's been in recent memory -- and the President has been very forthright in saying it's probably one of his biggest disappointments since he's been President. Those who have chronicled his political history, he has been somebody who has had success in the past, both in Texas and in the early days of his administration here, of bringing Republicans and Democrats together. Tonight, I think on more than one occasion, you will see the President calling on the Congress to come together, that he will do his part to elevate the tone in Washington, that he understands he plays a role in this. He's not going to be just pointing fingers at them to do it, he will say, collectively. I think there will be specific initiatives that the President will outline that clearly transcend the traditional partisan politics and can be the type of issues that can bring Republicans and Democrats together, particularly on the war. As the President has made clear, both in recent speeches in December, as well as meetings he's been conducting with both Democrats and Republicans on the Foreign Relations Committee, former Secretaries of Defense and State, that whatever our differences in the past may have been on Iraq, everybody can recognize the importance of winning now. He will reiterate that call. The fact of the matter is, is that the type of struggle we are in against a determined enemy will require both Republicans and Democrats in Congress to work together to ensure the security of our country. He will also talk about -- as I said, there will be some domestic initiatives. And, really, I believe, as a turn to the domestic side, one of the cornerstones of this speech will be a new American competitive initiative that the President will outline tonight. As I discussed, America's preeminence in the world economy is unquestioned, but that does not mean we should become complacent. And there has been a lot of interesting research and commentary in recent -- in the past year. The National Academy of Sciences, others, have looked at America's competitiveness and had kind of put some of the warning signals on the dashboard of the future of our economy when it comes to ensuring that we continue to be the leading innovator in the world. It's really what has made us, our economy the envy of the world, is because we are still the best place in the world to do business. The best, brightest minds in the world come to America. We have the most universities. We have -- the cutting-edge research that is being done is being done in America. It's because we have a climate, an environment and a workforce to do it better than anybody else in the world. But that's not going to stay the same if we do not take aggressive steps to maintain our economic leadership in the world. The President will acknowledge the fact that rising economic competitors, like China and India, is something that we have to recognize and address. The math and science scores, for example, of our children is something that we have to be worried about when you do international comparisons. So what the President will outline is a specific proposal of this American competitive initiative that is essentially to double basic research in the physical sciences over the next 10 years. We will have specific -- he will call for the permanent placement of the R&D tax credit as, again, so it will both be a federal commitment and a private commitment in basic research to continue to innovate and make sure that we are one of the technological leaders in the world. It is something that's critically important and, as I said also, there was a specific concern about math and science scores. The President will build on the success of No Child Left Behind and propose 70,000 high school teachers to lead -- to train 70,000 high school teachers to lead advance placement courses in math and science. We'll bring 30,000 math and science professionals to teach in classrooms and give early help to students who struggle in math so they have a better chance at good high-wage paying jobs. So this is a three-pronged approach, doubling the federal commitment to the most critical basic research programs in the physical sciences over the next 10 years. It is making permanent the R&D tax credit that demonstrates both a federal commitment and a private commitment to basic research, as well as having a very robust initiative that tackles one of the long-term concerns that are in a knowledge-based economy in which more and more of the physical barriers of competition have been lowered through the Internet and other aspects of our technology -- is that it's the skills of our people that are critical to our economic competitiveness in the future, so the math and science initiative will be a critical part of that. But the question really is, are there certain national goals or national priorities that can also lend impetus to these efforts. And in this way, the President is going to be very clear and probably as blunt as he has ever been about America's addiction to oil. And he will be that clear when he says it, that America is addicted to oil, and that it requires us to do something, obviously, about it. And what he is going to talk about specifically is really what has been recent developments in the type of research that will really be game changers in the near future when it comes to the automobile, when it comes to how our automobiles are powered. I mean, it really is -- I think there's -- somebody will correct me if I'm wrong, but 75 percent, I think, of all the oil production goes directly to powering automobiles. It is the elephant in the room when it comes to the energy issue. Now, the President will talk about how we power our homes and our businesses. He'll talk about the need for safe, clean, reliable nuclear energy. He'll talk about solar power. He'll talk about other aspects -- clean coal technology -- that we take seriously that part of the energy issue. But on the automobile issue, he's going to be talking specifically about cutting-edge research. Particularly when it comes to what has been getting more and more attention in trade publications and elsewhere is ethanol. And it's not ethanol the way we typically talk about it during a Iowa primary of corn-based ethanol, it is -- talk about is cellulosic ethanol, which as some of you who traveled with the President down to Brazil, there are some interesting things going down -- going on down there, in which a big part of their fuel mix comes from sugar cane. There's actually some really interesting technology that says we can convert wood chips, weeds, grass and other refuse into fuel. To the extent with some specific -- a 22-percent increase, which the President will propose tonight, in specific type of alternative energy research, that we can really make a breakthrough in which we can bring these types of technologies to the forefront. So the question is, what does that mean in a goal-oriented way. And the President will make very clear that we can bring this type of technology, to make the kind of ethanol practical and competitive within six years, which means, that coupled with some other new technologies, that we can replace more than 75 percent of our oil imports from the Middle East by 2025. So that really is a game changer when it comes to our reliance upon foreign sources of oil, particularly if you'd save from the Middle East, the equivalent of what would come from the Middle East. So the question is, why 2025; what takes so long, couldn't you spend more money? The fact of the matter is, is that we have a fleet that's already in use. We have 200 million cars already on America's roads, and it does take time -- the technology gets available in the next six years. In order then for the marketplace to take root and then really become a massive-scale change -- people can't afford to buy a new car, they -- as many, probably, here drive your car until it doesn't drive anymore. There's about 200 million people who have that challenge. Not everybody has the specific challenge of that, but the bottom line is that it will take time to change it. But with this aggressive goal, with some aggressive research, built upon $10 billion in increases in federal research that we've done in the last five years, we do believe we're on the cusp of something really different when it comes to dealing once and for all for our dependence upon foreign sources of oil. So these two initiatives, these two aspects I think really will serve as some of the keystone aspects of the President's domestic agenda. Now, you've heard a lot of talk about, and also will be something very important to the President, and also, quite frankly, has issues of competitiveness, is the issue of health care. And the President, as you have already been reporting about, will discuss health care. He will talk about the fundamental unfairness in our system right now in health care, where big businesses are treated one way, but individuals and small businesses are treated another way when it comes to tax policy, as well as other types of advantages they get through regulations. And what this will do is take the -- and particularly the vehicle that has become so promising out of the wake of the Medicare legislation is health savings accounts. We now have it to where about 3 million Americans have health savings accounts. But what we've learned from many people who have them is that they're still not getting the same type of advantages or tax breaks that the big companies are getting. We believe that there could be an explosion within the small business community of offering these types of health savings accounts if we leveled the playing field between small businesses and big businesses. Other aspects of maintaining -- or in controlling costs of health care has to rely upon the -- continue revolutionizing the information technology of the industry. It's quite amazing to say that in an area where there is such incredible technology used in the actual application of care -- we all have seen it, the CAT scans and these things -- but the actual industry, itself, lags way behind many other industries when it comes to -- as we all know, when your doctor scribbles out his prescription and nobody can read it -- well, that has inefficiencies throughout the system when one set of doctors can't talk to another set of doctors, everybody carries around their medical records. There are estimates that say you can cut costs in medical care costs up to 25 percent through information technology. The President is going to talk about that. And then, lastly, the pervasive intrusion of junk and frivolous lawsuits are something that continues to clog our courts and make it difficult for doctors to do their job. The President will particularly highlight the acute issue of OB/GYNs and the lack of access to OB/GYNs in more than 1,500 counties throughout America. This is an important issue, and it's something that the President will reiterate his support for in this speech. Some other things -- I'm going to preempt the questions. What about Social Security, Dan? Is the President going to talk about Social Security? Yes, he will. He will acknowledge the fact that the Congress did not get it done. But this is one of the areas where the President is going to, again, demonstrate that this is a problem that should bring Republicans and Democrats together. And what he's going to do is broaden the debate. This is not just about Social Security. It is about a generational commitment our country has made that we have to live up to. The baby boomer generation, his generation, are soon going to retire, and it's going to have an enormous impact on three programs: Social Security, Medicare and Medicaid. And analysts from both the left and the right will tell you that there is a problem. And this is something that the President obviously has contributed to the debate last year. We did not get the resolution we wanted in the Social Security debate, but what we did do is put on the forefront the issue of the problem that Social Security faces. What the President is going to ask here is for the creation of a commission that will take on all three of these issues -- the baby boomer generational issues on all -- and the impact they have on all three programs. So you ask the question, well, what's different about this, Dan, than the other commission you did? Well, the one we did earlier was an executive branch commission. He will specifically ask for a joint commission that could even contemplate having members of Congress on the commission, both Republican and Democrat. So this is the President's acknowledgment that this needs to be above partisan politics; we need to bring both Republicans and Democrats, sitting members of Congress, to the table. He will work -- he will not announce the formation of the commission, but he will pledge and call on Congress to work with him to come up with a bipartisan executive congressional commission that can take on these three big issues as they relate to the baby boomer generation. So that is something specific that he will talk about here. There are other important issues in here that we'll talk about. I want to get to your questions. Macroeconomic policy: The President will obviously talk about tax policy, spending policy. He'll talk about that he's glad that the Congress is taking on the issue of earmark reform. He will ask the Congress for the authority for line-item veto. These are important ways in which they can demonstrate, and we can demonstrate collectively, that in Washington, D.C. we take seriously our jobs of being good stewards of the taxpayer dollars. He will talk about immigration, another critically important issue both to our economy and to the character of our country. He will talk comprehensively about it, both border security and a humane guest worker program that brings rationality to our system that is totally irrational right now. So as I said -- maybe I didn't say. I said three sections to the speech, but I think I rattled off foreign policy, the domestic section of this speech -- and that is really where we'll be talking about the competitive initiative, energy, health care and those things -- tax policy. And the last one has been -- the President has always been very mindful that the true nature of our country is not gauged by our wealth, but by the character of our nation. And he will talk about what he will call a quiet transformation that is taking place throughout our country. The fact of the matter is, violent crime is down enormously; welfare cases are down; abortions are down; out-of-wedlock births are down. This is a quiet transformation, and government has played a role over the years. He is not going to take specific credit -- in fact, he's going to go out of his way to say both Republicans and Democrats can take credit for this transformation that is taking place, because there has been a role -- through abstinence programs, welfare reform and other aspects of social policy -- that has helped. But in a large part, though, this has been a personal transformation of people becoming more accountable. And it's something that is important, but there are areas in which we can build upon that. The President will talk about a -- we can now see, for example, on the issue of domestic AIDS here in America, that we can see a day where there are no new infections of AIDS if we put forward the right resources and strategies. The President is going to talk about that. So as we have in every State of the Union speech, and what will always be a cornerstone of this President's presidency is the compassion agenda and what we're doing. And that will obviously -- will also be what we're doing to help the citizens of the Gulf Coast, and what our strategy is to continue to make sure that we make the type of federal commitment and have the right partnership with our local partners to make sure that the people in the Gulf Coast recover. With that -- yes. Read more Comment (0), Email this.

MR. BARTLETT: New. Read more Comment (0), Email this.

MR. BARTLETT: Yes, sir. Read more Comment (0), Email this.

MR. BARTLETT: It would -- Read more Comment (0), Email this.

MR. BARTLETT: Correct -- 75 percent of our imports that would come from the Middle East, yes. Read more Comment (0), Email this.

MR. BARTLETT: Seventy-five. Read more Comment (0), Email this.

MR. BARTLETT: Yes. Sorry for the omission. I did mention the fact the President will discuss very clearly that there are some -- the international community has made very clear to the Iranian government that any ambition for a nuclear weapon cannot be tolerated. And he'll continue to talk about how we will rally the free world to make clear those -- of that bright line. He will also -- and I think it's very important, and what you'll see in this speech, is that this government and other governments, whether it be European governments, have made very clear that our beef is with the government, not with the people of Iran. And the President will speak directly to the people of Iran to make that very point, that he understands their aspirations, he understands what they want, and that he hopes for a day in which our government can be -- have closest relations with the people of Iran; that our concerns, our deep reservations and our critical concerns from the point of national security has to do with those who control the government. So there will be a specific discussion about that. Read more Comment (0), Email this.

MR. BARTLETT: At 5:00 p.m. Read more Comment (0), Email this.

MR. BARTLETT: An hour before -- 8:00 p.m. Read more Comment (0), Email this.

MR. BARTLETT: Yes. Read more Comment (0), Email this.

MR. BARTLETT: Seventy thousand teachers who are -- hold on, just to make sure I get it right -- to train 70,000 high school teachers to lead advanced placement courses in math and science. And there will be -- and then we're also going to try to recruit 30,000 math and science professionals, people who are engineers and scientists, to work in the classroom. These have been some of the recommendations that have been out there -- Lamar Alexander, Pete Domenici, some others have been talking about. Read more Comment (0), Email this.

MR. BARTLETT: We'll work through the Department of Education scholarship -- and programs that will help recruit scientists and engineers to come work in classrooms. Read more Comment (0), Email this.

MR. BARTLETT: Well, we'll put out a fact sheet tonight that will have all this information on it. So I don't want to butcher it from here. Read more Comment (0), Email this.

MR. BARTLETT: The total initiative is a $50-billion commitment over 10 years for all elements of this plan.* Read more Comment (0), Email this.

MR. BARTLETT: I don't have it on the top of my head. We can get that to you by tonight. Read more Comment (0), Email this.

MR. BARTLETT: Yes, a lengthy recognition of the duty we have to help the people of the Gulf Coast, quite frankly, not only to recover, but to address some of the underlying problems that were there before the storm even hit, to make sure that we build back better schools, provide better economic opportunity to the region. This will be something that will be very specific and very -- and a direct commitment by the President yet again. Read more Comment (0), Email this.

MR. BARTLETT: Again, that we shouldn't have been satisfied with the state of education, for example. If you look at New Orleans, if you look at some of the highest poverty and unemployment rates persistent in parts of Louisiana, for example, and Mississippi, and it's critically important that we have strategies and we rebuild, we rebuild better, and make it more hopeful and have better opportunities. A lot of those we'll be working hand-in-hand with local governments. They are the ones who are creating the vision. In many respects, we'll be helping fund that vision. But it's critically important that we just not build it back the way it was. We've got to build it back to make it better. Read more Comment (0), Email this.

Q What about Katrina? Is he going to say anything about another supplemental? Does he support another supplemental? And is he going to announce any new initiatives? Or is he just going to talk about money that's already been appropriated? ... Read more Comment (0), Email this.

MR. BARTLETT: I can't tell you that today. Read more Comment (0), Email this.

MR. BARTLETT: Well, he'll definitely make clear that we all have a duty in Washington, D.C. to live up to the oaths of office, that we all -- and he will definitely endorse the reform movement that is happening in Congress. He's not going to lay out a specific plan, but pledge to work with the Congress to enact reforms when it comes to lobbying, yes. Read more Comment (0), Email this.

MR. BARTLETT: I'm glad you raised both those issues, because I would be remiss if I didn't mention the fact that he will talk about hydrogen cars. We actually have seen promising -- the President laid out his vision on this. This is a much longer-term vision. The cellulosic ethanol that I talked about is something that is more on the cusp. But we're going to accelerate some of our funding into hydrogen research, so it is still a critical aspect of our long-term future of energy independence. And he will talk about that specifically. The reprocessing issue you talked about is one that has been discussed in some newspapers and elsewhere about discussions our administration is having about creating an international framework in which we can deal with the rapid expansion of nuclear energy, whether it be in Asia or other parts of the world, and, hopefully, here at home. And the question really is, is the reprocessing issue -- how can we set up an international regime in which we can be confident; and how that technology -- who has access to that technology; and then what you do with the spent fuel. The President will not discuss this specific initiative in the State of the Union tonight, but it is something that is being actively worked. And it's interesting, if you want to know -- some of you who follow the issue with Iran more closely -- a microcosm of this issue on a more global scale is the issue with Iran. The President, as you know, has endorsed a proposal put forward by the Russians to have the fuel cycle take place outside of Iran; that they supply them so they can have a civilian nuclear energy program, take the spent fuel out to make sure that there is no proliferation issues. And in a nutshell, that is really kind of a -- if people are trying to get an understanding of what -- the broader global initiative we're talking about, that really is what it is on a much more specific instance. But the question is, host countries, countries who have ambitions to have nuclear energy -- India, for example, others -- and the question is what type of international regime can we set up to accommodate that and it's something we're actively working on. Read more Comment (0), Email this.

MR. BARTLETT: There is money in the budget, and we'll be talking about that in the coming days and weeks. Read more Comment (0), Email this.

MR. BARTLETT: I don't have a specific number for you tonight. Read more Comment (0), Email this.

MR. BARTLETT: You need better sources, Ken. (Laughter.) Read more Comment (0), Email this.

MR. BARTLETT: You'll be there to cover it. Read more Comment (0), Email this.

MR. BARTLETT: Yes. Read more Comment (0), Email this.

MR. BARTLETT: Like I said, I don't -- Read more Comment (0), Email this.

MR. BARTLETT: Yes. Read more Comment (0), Email this.

MR. BARTLETT: Addiction to oil. Read more Comment (0), Email this.

MR. BARTLETT: Not addiction to cars. Read more Comment (0), Email this.

MR. BARTLETT: Well, we've talked about conservation efforts. And, in fact, key aspects of the energy bill that was passed this past year have many incentives for conservation, and also have incentives, tax incentives, for the purchase of hybrid vehicles, for example. There has been probably the biggest incentive for people to drive less, and that is the fact that oil is as expensive as it is today. And it's had a direct impact on the driving habits of the American people. But the fact of the matter is, the way we're going to solve this issue over the long run, is going to be through the harnessing of technology and the rapid development and deployment of technology. Many people don't -- I didn't realize until looking at this issue that automakers are already creating -- have already created 4.6 million cars on the roads today that can accommodate flex fuels, for example, this ethanol-based gas fuel system. In order for them to ramp that -- and GM is doing over a half-million cars this year, and Ford has committed to overturn 50,000 flex fuel cars. This is what's going to revolutionize the debate on energy and automobile use. And the President's agenda and the President's specific proposal will help accelerate that dramatically. Read more Comment (0), Email this.

MR. BARTLETT: Like I said, it's a combination of the ethanol research we're doing, as well as other aspects of technology. He will get into a little bit of it -- Read more Comment (0), Email this.

MR. BARTLETT: No, not in that analysis, no. Read more Comment (0), Email this.

MR. BARTLETT: Well, we have always supported and will continue to advance CAFE reform, but that is not a part of our equation on this conclusion. Read more Comment (0), Email this.

MR. BARTLETT: Well, we'll have specifics that we'll roll out later on that. Read more Comment (0), Email this.

MR. BARTLETT: Say that again? Read more Comment (0), Email this.

MR. BARTLETT: Well, I think one of the biggest concerns the American people have is oil coming from the Middle East -- is a very volatile region in the world. There are other volatile regions -- Read more Comment (0), Email this.

MR. BARTLETT: I'll have to get you the -- I don't have that on the top of my -- but there was another aspect of your question? Read more Comment (0), Email this.

MR. BARTLETT: Well, one part that I forgot on the automobile aspect of it, the other promising research that I haven't -- the technology I haven't talked about is new batteries that will make hybrids and plug-ins a reality. The problem has been in the past that the batteries have been too big and they haven't held power long enough. But the type of research that has gone into our cell phones and other things, lithium batteries are really on a fast pace to becoming revolutionized in which they can afford a car to go up to 60 or 90 miles clearly on just electrical power. They're plug-in -- been a lot of recent coverage of this. We will advance funding in the area of lithium battery research, as well. So that's another one of the technologies that helps us come to the conclusion of 75 -- the 75 percent figure. Read more Comment (0), Email this.

MR. BARTLETT: Well, the best reform we can do is make the tax cuts permanent, as the President will argue tonight. We don't want a temporary expansion, so we shouldn't have a temporary tax cut, we should make it permanent. We will continue to discuss the issue of broader tax reform with the Congress, but that is not something that will be detailed in this speech. Read more Comment (0), Email this.

Q On health savings accounts, it's been argued that if you really want to help those that can least afford health insurance that you should probably instead propose some form of tax credit that's inversely proportionate to income. And I just wondered why the White House doesn't approach this problem in that way. ... Read more Comment (0), Email this.

MR. BARTLETT: No, that's exactly -- that's what I'm talking about, as far as, if you own a health savings account, we're going to allow you to completely writr off tax cuts -- I think what's been speculated in the press is that if you're in a health savings account, you will get that tax deductibility. So it is a part of the program if you're a part of a health savings account. Read more Comment (0), Email this.

MR. BARTLETT: We do have one; I don't have one. We'll have, like I said, fact sheets. We'll have -- all those things will come out in regular order and will come out in advance of the speech, so everybody will be able to do all that. Read more Comment (0), Email this.

Q Is the President going to announce any breakthrough in illegal immigration, which is on the rise? And there are -- millions are not captured, and they are under the table -- they are living under the table. So to make them come out and pay taxes and the economy -- ... Read more Comment (0), Email this.

MR. BARTLETT: Well, he's going to call on Congress to do it. There was action both in the House and the Senate, and we do believe this is the year that we should act. Read more Comment (0), Email this.

MR. BARTLETT: He'll talk about why he's optimistic this year that there can be troop drawdowns. There already has been some announced on Christmas Eve by Secretary Rumsfeld and General Casey. But he will also make very clear that the conditions for it will be just that, conditions on the ground and commanders on the ground, based on their assessments of developments in Iraq. So he will say that -- he will argue, as most Americans do, that they want -- he wants the troops to come home, but he wants them to come home with victory. Read more Comment (0), Email this.

MR. BARTLETT: Well, I think it is a midterm election, obviously, and it's -- like I commented earlier, that there is a -- already a kind of atmosphere of high partisanship with the nomination process and these things, which the President will recognize -- we hope, to be the two new justices who will be in attendance, Justice Alito and Chief Justice Roberts. But I think what the President will argue in this speech is that the issues before our country are bigger than politics, and both Republicans and Democrats should be able to come together. Those of you who have talked to Ken Mehlman and others, we've already said good policy makes good politics, and we stand by that. And a bold, aggressive, optimistic agenda will be one that both Republicans and Democrats can come together on. And it's also one in which the President, as the head of his party, will be able to articulate next fall in a way that can help maintain our control of the Congress. Read more Comment (0), Email this.

MR. BARTLETT: The oil -- who, the lobbyists? Read more Comment (0), Email this.

MR. BARTLETT: Well, for example, to get information about what automakers are doing, we've obviously talked to automakers about flex fuels and those things we're doing. A lot of the development of this policy, my understanding, and I don't have all aspects of it, is that the thrust of this plan is government-backed research that is taking place as we speak. So a lot of the discussions were with scientists and others at the Department of Energy, at Department of Commerce. The main areas of plus-ups in some of these programs were with the National Science Foundation; NIST, which is over at Commerce, as well as the innovation division at the Department of Energy. So most of -- my understanding of the development of this policy has been done through the scientific experts internally. Now, there have been -- for example, this Fortune Magazine story, the most recent cover of Fortune talking about how to beat the high cost of gasoline: Stop dreaming about hydrogen. We're not dreaming. We're funding it. But ethanol is the answer to the energy dilemma. And there's -- it talks a lot about venture capital and where the money is being invested in the private sector. And I know that we've talked to a lot of people who are doing investing in this area, as well. But I don't know specifically on that part of your question. Read more Comment (0), Email this.

MR. BARTLETT: One more after this, and that's it. Read more Comment (0), Email this.

Q Do you expect any legislation to come out of that entitlement commission you're talking about? And what is the rationale, given these are three very complicated issues and we know the Tax Reform Commission's recommendations have been delayed and other blue ribbon panel recommendations in -- ... Read more Comment (0), Email this.

MR. BARTLETT: Last question. I just saw your hand -- Read more Comment (0), Email this.

MR. BARTLETT: The research -- well, the -- Read more Comment (0), Email this.

MR. BARTLETT: We'll have, like I said, in the vital areas of energy research that we're increasing, it's a 23-percent increase. But I'll get you the baselines on those later today. Read more Comment (0), Email this.

MR. BARTLETT: Did I say 22 earlier? Read more Comment (0), Email this.

MR. BARTLETT: I've got to get my act together. Read more Comment (0), Email this.

MR. MCCLELLAN: Good afternoon, everyone. I want to begin with one announcement -- actually, a couple of announcements, one I might have mentioned to some of you earlier today. First of all, the President intends to nominate Ed Lazear to be a member of the Council of Economic Advisors, and upon appointment, designate him chairman. Ed is currently a professor at Stanford University's Graduate School of Business and he was a member of our advisory panel on federal tax reform. We look forward to Ed joining the economic team. He has helped to produce -- the economic team has helped to produce real results for the American people; that we have worked to help create 4.6 million jobs; the unemployment rate is down to 4.9 percent; and we look forward to him joining the team and helping the President build upon our strong record of accomplishment when it comes to the economy. Second of all, the President looks forward to giving the State of the Union tomorrow night and speaking directly to the American people. We are living in historic times and, as the President has said, we have a responsibility to lead. America is always at its best when we are shaping events, rather than being shaped by events. And the President tomorrow night will be charting the path forward for our nation. It's important that we continue leading and acting to spread peace abroad and prosperity at home. The President is optimistic and confident about the path that we are on. Tomorrow night, he looks forward to discussing some bold initiatives to help keep America strong and he will talk about some new policies that will reflect the priorities that the American people care most about. It will be a hopeful agenda for our future that he will be outlining. And as he said earlier today, and has said last week, it's important that we all work together to elevate the tone in Washington and work together to achieve big things for the American people. Following the State of the Union remarks, the President is going to travel across the country to directly engage the American people on four key issue areas or initiatives that he will be talking about in the State of the Union tomorrow night. He will be giving four major policy speeches in the coming weeks, over the course of the month of February, in addition to talking about -- continuing to talk about the global war on terrorism. The speeches will give the President an opportunity to lay out in greater detail his agenda for 2006 and focus on those four key initiatives or issue areas. And with that, I'll be glad to go to your questions. Read more Comment (0), Email this.

MR. McCLELLAN: Well, the President hasn't given the State of the Union address, I want to hold off, let him give the address tomorrow night, and then I think you'll be hearing more from him. But the President, earlier today and last week, talked about some areas that we need to continue to focus on to keep America competitive; to address priorities that the American people care most about, like rising health care costs; and our dependence on foreign sources of energy. And he'll talk more about that tomorrow night in his remarks. Read more Comment (0), Email this.

MR. McCLELLAN: Nice try, but I'll hold off until tomorrow night. You'll hear directly from the President on some of those. And you heard a little bit from him last week and a little bit more from him this morning, and I think I'll leave it to the President to talk about that more. That's what the State of the Union is for. Read more Comment (0), Email this.

Q How bold can he be in this State of the Union, given the fact that this is an election year where members of Congress are saying that it's not really a time to take on some controversial initiatives? And, also, with this idea of spending restraint being so preeminent in the President's agenda for 2006, the deficits running the way they are -- I mean, just how bold can you be? ... Read more Comment (0), Email this.

MR. McCLELLAN: He's going to be talking about some bold initiatives tomorrow night, and I would encourage you to listen carefully. Read more Comment (0), Email this.

MR. McCLELLAN: Well, tax cuts are part of the solution. It's out of control spending that has been part of the problem that you bring up, and that's why the President has continued to lead and advocate spending restraint within the budget. And Congress has changed the path that our budget is heading on by moving forward on initiatives that he outlined to -- Read more Comment (0), Email this.

MR. McCLELLAN: -- address mandatory spending and reduce the growth of discretionary spending, and it's important that we continue moving in that direction. But we are a nation that has been at war. We are a nation that has had to address unanticipated challenges, like the recovery and rebuilding along the Gulf Coast. And, you bet, we're going to continue to meet the needs when it comes to winning the war and -- Read more Comment (0), Email this.

MR. McCLELLAN: -- we're going to meet the needs when it comes to the people of the Gulf Coast as they work to rebuild their lives and their communities. That is something the President is strongly committed to. Now, in terms of keeping our economy growing, and keeping our budget on path to cut the deficit in half, we need to continue to keep that economy growing, we need to continue to exercise spending restraint. And tax relief has helped us lay the foundation of a strong economy. We're creating jobs -- 4.6 million new jobs created since May of 2003; 400,000 in just the last two months. It's because of the policies that we have pursued that our economy is growing. And if you look back over the last few years -- and, Helen, I would encourage you to do this -- the revenues have come in much higher than anticipated. Many people said that we'd pass tax cuts and that it would have the opposite effect. Well, it didn't turn out that way. Tax cuts are good to keep our economy growing. It's important that we make the tax cuts permanent. You bet, the President is going to continue advocating for that. The worst thing we can do to our economy right now is raise taxes on working families and the American people. As I pointed out last week, it would be a $1.3 trillion tax hike on the American people and working families if we let those tax cuts expire. Read more Comment (0), Email this.

MR. McCLELLAN: Well, I disagree with that. We're making sure that -- the President has talked about this on a number of occasions. The government has a responsibility to make sure that we are meeting the needs of our neediest Americans, and we're meeting the needs of people with disabilities, and we're meeting the needs of the elderly. That's why this President worked to pass Medicare reform. And now seniors are starting to realize significant savings on their prescription drug cost. And we will continue working to make sure that those priorities of the neediest Americans and our elderly are met. Read more Comment (0), Email this.

MR. McCLELLAN: Well, first of all, we look forward to his confirmation. Judge Alito is someone who is exceptionally well qualified to serve on our nation's highest court. He brings more experience than anyone in the past 70 years to the bench, having served 15 years on the federal appeals court. And he is someone that all Americans can be proud of. And so we look forward to the Senate moving forward quickly on his confirmation. I think they will be having a vote later today, and then moving forward tomorrow. And I think that Justice O'Connor has waited for quite some time to move on to her next challenge. And so I expect that we will move forward quickly to see that he is in place. Read more Comment (0), Email this.

MR. McCLELLAN: Well, we'll keep you posted, but the vote hasn't happened yet. Read more Comment (0), Email this.

MR. McCLELLAN: Well, we remain engaged in a global war on terrorism. And I think you can expect the President will continue to focus on the progress we're making in the global war on terrorism and continue to talk about the advance of freedom in the world. Freedom is advancing in this world. And there is a lot of progress over the past year, and we need to continue to build on that. Even there, it's advanced. And the President will also talk about threats we continue to face. You heard him mention earlier today that he will talk about the threat from the regime in Iran. This is a regime that continues to defy the international community. It's interesting that now the international community is coming together and starting to send a very firm message to the regime that the regime is now talking about -- or more interested in looking at the proposal by Russia. It's important that we send a very clear message to the regime that their behavior will not be tolerated and that they must end their nuclear weapons ambitions. And you heard from him earlier talk about that. But I also expect he'll continue to talk about the importance of what we are doing abroad to win the war on terrorism, and what we are doing at home to prevent attacks and save lives. Read more Comment (0), Email this.

Q Scott, on the agenda for this year, 2005 was very difficult for this President on a number of fronts, and if you look at some of the signature initiatives that he discussed in the State of the Union, they were either put off or they failed -- Social Security being the most notable. What are the challenges of trying to outline new agenda items combined with things that you're still pushing -- like the Patriot Act and the permanence of tax cuts -- in an election year when Republicans are under considerable pressure -- ... Read more Comment (0), Email this.

Q Let me ask you a question about elevating the tone, because, obviously, a lot of Americans are familiar with this talk from the President, even though it didn't really come to pass after he was elected in 2000. The President has talked a lot recently about, in essence, trying to set the terms for how his critics should disagree with him on Iraq, what the responsible way is to do it and what the irresponsible way is to do it. So could you be a little bit more specific about what he thinks he can do to elevate the tone? ... Read more Comment (0), Email this.

MR. McCLELLAN: First of all, we said that we have great respect for his service to the country. Read more Comment (0), Email this.

MR. McCLELLAN: No, we said that at the time. I correct you. Go ahead, Goyal. Read more Comment (0), Email this.

Q Two questions. One, if you can confirm or any comments on The New York Times report last week that as far as domestic recording by NSA's concern that is basically focused on the terrorists in Pakistan and calls going from the U.S. to Pakistan and coming from Pakistan to the U.S. And al Qaedas are there. That's why the CIA last week, or two weeks ago, took action against the number two man, because they were not getting any cooperation from Pakistan. Can you confirm that report? ... Read more Comment (0), Email this.

MR. McCLELLAN: Well, there are discussions going on. You said, Iran? Is that -- Read more Comment (0), Email this.

MR. McCLELLAN: Yes, but you said referring Iran to the Security Council? As the President talked about, that's something that we are looking at. We're in discussions with the international community. It's important that we send a clear message to the regime that its nuclear ambitions -- nuclear weapons ambitions will not be tolerated. We will not accept the regime developing a nuclear weapon. It is an issue of trust. The President talked about that earlier today. This is a regime that has hid its activities from the international community for some two decades. It is a regime that has refused to abide by its international obligations. And Secretary Rice is in London this week having discussions with members of the United Nations Security Council, the permanent members of the Security Council, in Germany, about how we proceed forward. We're also in discussions with others. We're in discussions with our allies and partners about how to move forward. I don't want to try to prejudge that at this point, but we've long said that it is time for the matter to be referred to the Security Council, that the regime's noncompliance cannot be tolerated. Read more Comment (0), Email this.

Q And insofar as the President has made it clear that those who don't stand with the U.S. against terrorism stand -- if you're with the terrorists -- you're either with us or against us. In a nuclear stand-up with Iran, are we beginning to see ourselves -- is the U.S. beginning to see itself in a situation where you're either with us or against us against Iran? ... Read more Comment (0), Email this.

Q Scott, you say the President is going to be optimistic tomorrow and there's been a lot of talk about being upbeat in his message. Many Americans believe that the President would have more credibility if he acknowledged some of the hardships that they're facing, whether or not there are people who are still homeless from Katrina, or U.S. casualties in Iraq. Is he going to address any of those things? ... Read more Comment (0), Email this.

MR. McCLELLAN: No. I mean, that's one of his initiatives now. But I'm talking about new initiatives now. Read more Comment (0), Email this.

MR. McCLELLAN: The energy -- Read more Comment (0), Email this.

MR. McCLELLAN: Well, first of all, I don't [sic] think he's outlined some of the areas we need to focus on, in addition to what we've already done. We did pass a comprehensive energy strategy last August, and that was the first time that had been done in, like, a decade or so. And that will put us on a path to reducing our dependence on foreign sources of energy. The President has long talked about the importance of making America more energy self-sufficient, and that's why that legislation was so important. But there's more that we need to do. Energy prices remain too high and -- Read more Comment (0), Email this.

MR. McCLELLAN: Well, you'll hear his speech tomorrow, and he'll talk about what we need to do and the kinds of alternative sources of energy we need to look to in his remarks. Read more Comment (0), Email this.

MR. McCLELLAN: But not only that -- again, tomorrow night, the State of the Union, there's only so much you can say in the course of that time period on each priority area. And that's why I said that following the State of the Union the President is going to continue to lay out in greater detail some of the initiatives that he will be talking about tomorrow night. So I'd encourage you to listen. I know you want to try to get out in front of what he's going to say, but I'd encourage you to listen tomorrow night, and then listen in the coming weeks as he outlines in greater detail his agenda. Read more Comment (0), Email this.

MR. McCLELLAN: All right, I'll tell you, but don't tell anybody else, okay? Read more Comment (0), Email this.

MR. McCLELLAN: Yes, he was doing another run-through this morning, following the Cabinet meeting earlier today, of the speech. Read more Comment (0), Email this.

MR. McCLELLAN: Well, if he wants to do more, that's certainly an option. But, typically, on the day of, he doesn't tend to do a run-through of the speech. But it just depends, so we'll see. Read more Comment (0), Email this.

MR. McCLELLAN: Well, in the 20s, in the low 20s right now -- 23 as of early this morning. Go ahead. Read more Comment (0), Email this.

MR. McCLELLAN: To elevating the tone? Read more Comment (0), Email this.

MR. McCLELLAN: All of us. Both parties, to work together to get things done for the American people. Read more Comment (0), Email this.

MR. McCLELLAN: No, that's not what he said. That's what you said. Read more Comment (0), Email this.

MR. McCLELLAN: He's going to continue to. I think we've seen that -- and it's one of the things he's talked about, Victoria. Maybe it's a surprise to you, but this town has become pretty bitter over the course of the last several years, not just when this President has been in office, but even before that. And this President, when he -- go back to his days as governor; he was able to reach out and work with Democrats and Republicans, alike, to get things done, and he was hoping we could have made more progress to elevate the tone in this city. But it requires both parties reaching out to one another. The President has reached out. It requires others to reach back. And there are many people here in this town that would like to see that happen, many leaders that would like to see that happen. Unfortunately, the focus sometimes is too much on the partisan attacks and the bitter, negative tone. The President is going to continue to say, even though it's an election year, we've got to work together and elevate the tone and get things done. Read more Comment (0), Email this.

MR. McCLELLAN: Well, I think we've made our views very clear on the Patriot Act. And it's -- unfortunately, there are some that have obstructed getting that renewed. And there was a compromise -- Read more Comment (0), Email this.

MR. McCLELLAN: I reject your characterization, because there was a conference committee that came together and they reached important compromises. Go ahead, Mark. And we continue to urge renewal of the Patriot Act. It's an important tool in the war on terrorism, and it's helped to disrupt plots and prevent attacks. Read more Comment (0), Email this.

Q You've spoken about the President's hope to get something done, despite the fact that this is an election year. As someone who listened to last year's State of the Union speech and would probably rate tax overhaul as one of the top issues the President hoped to accomplish something on quickly, is that a casualty of the election year? ... Read more Comment (0), Email this.

MR. McCLELLAN: I don't believe we have yet received a report from the Secretary of Treasury. But we do recognize the realities of an election year and recognize what can be accomplished in the context of an election year. But the President, again, tomorrow night is going to talk about some bold initiatives that we need to move forward on, and we need to move forward on now. Read more Comment (0), Email this.

MR. McCLELLAN: I just told you where we are, and tomorrow night you'll hear more about the priorities. Read more Comment (0), Email this.

Q Scott, a two-part. The Washington Post has published history professor emeritus Lewis Gould's critique of the State of the Union speech as, in his words, "nothing but theater, meaningless annual ritual, continuous campaigning, a gaudy spectacle of ballyhoo and hype." And my question: Since this professor emeritus is from the University of Texas in Austin, was he one of your teachers? (Laughter.) ... Read more Comment (0), Email this.

MR. McCLELLAN: I don't recall him being one of my teachers. I don't know if he was even there -- when was that, 20 years ago, almost 20 years? Read more Comment (0), Email this.

Q Why aren't the Hamas-electing Palestinians immediately cut off from all U.S. funding of what they decided to elect, a terrorist government whose leaders have again refused to abandon its call for the destruction of Israel? ... Read more Comment (0), Email this.

MR. McCLELLAN: Well, first of all, right now we believe it's important for President Abbas to continue to remain engaged in the peace process, and indications are that he intends to do that, from what we've seen in recent days and in terms of his comments. And we will see how the new government forms. At this point, it's in the process of forming. And as we've said, if Hamas is the new government, we will not fund a terrorist organization. The President couldn't be clearer -- Read more Comment (0), Email this.

MR. McCLELLAN: Well, I think there's a level of uncertainty in the political system in the Middle East right now, and in the Palestinian Territories. And so we'll see how that plays out. Read more Comment (0), Email this.

MR. McCLELLAN: Well, as we indicated the other day, we believe very strongly that the Palestinian people want a peaceful life, that they want to live in peace. The way to get to peace is the two-state vision that the President outlined. That's why there are discussions going on with the Quartet and others about how to move forward. And that's why we continue to encourage President Abbas to stay in office and remain engaged in the process. He is someone who has expressed a commitment to peace. The election, as we talked about the other day, had much more to do with fighting corruption and responding to the needs of the people. The President talked about that in his remarks the other day. Remember, when it comes to elections, elections are the beginning of the process, not the end of the process. So we are going to continue working to achieve peace, and working with all those who want to be a partner in peace. But you can't be a partner in peace if you advocate the destruction of a neighbor, and if you advocate the use of terror, the use of attacking innocent civilians. Read more Comment (0), Email this.

MR. McCLELLAN: Freedom is advancing. Again, elections are the beginning of the process. We congratulate the Palestinian people for conducting a successful election that was peaceful. And we are going to continue to work with our partners and others and support people in the region as they move forward to achieve peace. Read more Comment (0), Email this.

Q According to data currently available at the Department of Homeland Security Funded Terrorism Knowledge Base, the incidents of terrorism increased markedly in 2005: worldwide attacks were up 51 percent from the year before, and the number of people killed in those attacks is up 36 percent; since the year 2000, attacks are up 250 percent, and deaths are up 550 percent. How do you reconcile those numbers with your claim that you're winning the war on terrorism and putting terrorists out of business? ... Read more Comment (0), Email this.

Q Prime Minister Koizumi is still under much scrutiny because of the (inaudible) U.S. deal more than a week ago. How do you think this will affect U.S.-Japan relations? And how does President Bush -- does he have any other plans to -- action or to call the Prime Minister again? ... Read more Comment (0), Email this.

MR. McCLELLAN: Well, the President has made it very clear that we cannot go even a day without this vital tool. It has been essential in helping us to disrupt plots and prevent attacks and save lives -- we have spoken about the many examples, the way it has. The one thing we are determined to do is not let that wall be put back up between law enforcement and intelligence officials. It was important to break down that wall so that they could share information and be able to go after people who may be inside the United States seeking to do harm to innocent civilians. And so the President is continuing to urge renewal of the Patriot Act. But it's important that we not let that law expire even for a day. And so -- Read more Comment (0), Email this.

MR. McCLELLAN: Well, there are discussions going on -- there are discussions going on with Congress, and we continue to engage in those discussions about how to get it renewed. Read more Comment (0), Email this.

MR. McCLELLAN: Absolutely. Read more Comment (0), Email this.

MR. McCLELLAN: Absolutely. And Condi, again -- I go back to what I said earlier. Elections are the beginning of the process, not the end of the process. Democracy yields peace. Democracy yields responsive government. And I think that that's what you saw in the elections last week, was that there was a sense with -- among the Palestinian people that they were sick of corruption. The President talked about this earlier today. They wanted more responsive government, and they had some concerns about the old guard that had been in place for many years. Those were ongoing concerns that they had, and I think they were able to exercise their choice at the ballot box in a peaceful way. And so we congratulate them for doing so. But, again, elections are the beginning of the process, not the end. Read more Comment (0), Email this.

MR. McCLELLAN: He was elected by the Palestinian people to serve a four-year term as President of the Palestinian Authority. Read more Comment (0), Email this.

MR. McCLELLAN: Well, there's a road map that spells out the steps forward to getting to the two-state vision. And that is the way to get to the vision that the President outlined, and all parties have responsibilities under that road map. Go ahead. Read more Comment (0), Email this.

MR. McCLELLAN: Well, we will not tolerate North Korea's involvement in illicit activities. We have taken steps to stop the flow of counterfeit money, or stop the flow of other fake goods or drugs. And we will continue to do so. I think we've announced what steps we've taken and the successes we have achieved when it comes to addressing those issues. Read more Comment (0), Email this.

MR. McCLELLAN: Well, I saw some articles maybe over the last few days about the whole issue of democracy. First of all, the President believes that all people want to live in freedom, and so if you believe that, then you have great confidence in the power of democracy. We saw the power of democracy last week. Again, elections are the beginning of the process. They're not the end of the process. Democracy leads to peace. Democracy leads to peaceful, responsible government. And that's what is important to keep in mind here. But seeing some of the articles, there's this attitude that some people can't live in freedom. That's a dangerous elitist attitude that the President strongly rejects, or that it's not time for -- certain people aren't ready to live in freedom. Freedom is on the march in the world. Freedom is on the march in the Middle East. The people of the Middle East want peace. They want freedom. And we're going to continue to support those efforts. And we saw the power of democracy take place in the Palestinian territories last week. And it was -- we saw the people step forward -- let's make clear, Hamas was out there campaigning on fighting corruption, and campaigning on providing essential social services to the people. I don't think Hamas was out there saying, we're going to destroy Israel. And we believe the Palestinian people have a strong desire to live in freedom, and we support those aspirations. We believe the people in Israel want to live in freedom, and that's why the two-state vision is so important. And we have an opportunity to continue to advance peace in a troubled region, and that's what we will do. But the great thing about democracy is that people choose, they get to chart their path forward. Read more Comment (0), Email this.

MR. McCLELLAN: There were people that said after World War II that Japan couldn't -- that the Japanese people couldn't live in freedom. We had an attitude in our own country that said African Americans couldn't live in freedom. It was a terrible part of our past. And the President just rejects the attitude that suggests certain people can't live in freedom. Go ahead. Read more Comment (0), Email this.

MR. McCLELLAN: I'm delighted to call on you. Read more Comment (0), Email this.

Q Okay, thank you. I'm a Chinese correspondent. My question is, Taiwan leader Chen Shui-bian yesterday said that he is considering to abolish guidelines for national unification, and abolish the national unification council. So what's your comment and views on his speech? ... Read more Comment (0), Email this.

Q And I'm glad that you did call on me, Scott. Thank you very much. A couple of Republicans over the weekend, including Senator John Thune, suggested that the White House do a public data dump on everything you've got related to Jack Abramoff, just to clear the air. Your response on that? ... Read more Comment (0), Email this.

MR. MCCLELLAN: Hello. Happy Friday to everyone. Let me begin with one announcement, and then I want to make a couple comments on the economy. The President, today, is announcing his intention to nominate Randy Kroszner and Kevin Warsh to be members of the Board of Governors of the Federal Reserve. Randy is a professor of economics in the Graduate School of Business at the University of Chicago. He was previously a member of the Council of Economic Advisors. And Kevin is a Special Assistant to the President for Economic Policy here at the White House. He previously served as Executive Director and Vice President of Mergers and Acquisitions in the Investment Banking Division of Morgan Stanley. And, secondly, I'd like to talk about the economy. Real GDP for the past year grew at 3.5 percent. That is above the 50-year historical average of 3.3 percent. The latest numbers came out for the 4th quarter -- the preliminary estimate of the 4th quarter numbers showing it grew at 1.1 percent. Everyone anticipated a slowdown from the rapid growth that we were experiencing previous -- experiencing in previous quarters. The preliminary estimate is lower than what was expected, but I think it's important to look behind the numbers. The reason for this goes to the effects of the hurricanes on the Gulf Coast. That took an estimated half percentage point off GDP because of the increase in imports of crude oil, and oil and gas production in the Gulf Coast region being lower. Motor vehicle sales were down significantly, after a surge in the previous quarter. That is estimated to take another .6 percent off GDP growth. What is important to look at is our economic foundation is strong. Job creation is up. We've seen 4.6 million jobs created since May of 2003, 2 million last year alone; 400,000 jobs in the past two months. Unemployment is down to 4.9 percent, well below the averages of the '70s, '80s and '90s. Independent forecasters continue to believe that there will be strong growth in the quarters ahead and in the year ahead. We are confident about the path we are on because of the policies this President has pursued and the policies we have put in place. Our policies are working to keep the economy growing and creating jobs. It's important that we continue to act on pro-growth policies. That means keeping taxes low, reining in spending, improving education and health care, and making sure that workers have the job training they need to fill the jobs of the 21st century. And with that, I'll be glad to go to your questions. Read more Comment (0), Email this.

MR. McCLELLAN: Well, Terry, we're confident and optimistic about the path that the economy is on because of the policies that are in place. Our policies are working to keep the economy growing and creating jobs, as I pointed out. Unemployment insurance claims, that came out for the last four weeks yesterday, show that we should expect very strong job growth, going ahead. And so it's important to look at the overall picture. We can look at the one number, but when you look behind those numbers, you can see why we are confident. And when you look at fundamentals of the economy, the fundamentals are strong. And so that's why we're optimistic about the path that the economy is on. And I think you're also seeing that in reaction from independent economic experts today and from the markets, as well. Read more Comment (0), Email this.

MR. McCLELLAN: Go ahead, next question? (Laughter.) Read more Comment (0), Email this.

MR. McCLELLAN: Well, there's a Palestinian constitutional process that is now underway in terms of the formation of the new government. We'll see how that process unfolds and see how the government forms. I think the President made clear what our views were yesterday. The best way to get to the two-state vision that the President has outlined is to continue to move forward on the vision that has been outlined. That's the way to get to peace. The best way to get to peace is through the two-state vision that the President outlined. And we'll see how it unfolds. I'm not going to try to speculate about a government that has yet to form at this point. If it turns out to be a government that is of Hamas, I think we've made our views very clear on Hamas and our views remain unchanged. And as the President indicated yesterday, and as many others -- the Quartet and others -- made it very clear, that you can't have one foot in politics and one foot in terror. There's -- that's a contradiction that needs to be resolved. Read more Comment (0), Email this.

MR. McCLELLAN: I'm sorry? Read more Comment (0), Email this.

MR. McCLELLAN: Yes, again, I'm not going to speculate about this point. We'll see how the government forms. But our views on Hamas remain unchanged. And we've made very clear what our views are and what our policy is with regards to Hamas. But the Palestinian people, as the President indicated yesterday, voted for change. But their aspirations for peace and a peaceful life remain unchanged. And the way to get to peace is through the two-state vision that the President outlined. And that's what we will remain committed to. The Quartet put out a statement yesterday, as well, reinforcing what it has previously said, which is that that contradiction needs to be resolved if you're going to participate in the political process. When it comes to an organization that is participating in the political -- in the democratic process, but remains armed outside of that process -- Read more Comment (0), Email this.

MR. McCLELLAN: No, let me go to Kelly. I'll come to you. Read more Comment (0), Email this.

MR. McCLELLAN: Well, no, I think the President actually addressed that yesterday in his remarks. He talked about the power of democracy. Democracy puts the people in charge. And the people want peace; the people want responsive government. And they voted to change the status quo. And the President said it should be an eye opener to people in the -- leaders in the Palestinian Territory. They voted to change the status quo. They're concerned about things like corruption in the government. They were concerned about making sure that their needs were being met. And democracy leads to government that is responsive. And if it's not responsive, then the people have the opportunity to hold that government accountable and change. Read more Comment (0), Email this.

MR. McCLELLAN: And I just pointed -- what the President pointed out yesterday, you have to look at what they voted for. It was voting for change. But the aspirations of the Palestinian people is one of peace. The Palestinian people believe in an open and tolerant society, and they believe in a diversity of views. I think we've seen that through their actions. They also want government that is responsive to their needs. And in terms of Hamas, as we've said, our views remain unchanged. Read more Comment (0), Email this.

MR. McCLELLAN: And -- anyway, go ahead. Read more Comment (0), Email this.

Q -- touch on a separate topic, you may want to come back to Hamas. Senator Reid and Senator Schumer are asking for a more full cooperation on the Abramoff situation with releasing all contacts, WHCA and phone logs, and all of those sorts of things. What is your -- we've talked about this a lot, but what is your response, specifically, to that, and their request for -- ... Read more Comment (0), Email this.

MR. McCLELLAN: What would be the implications for our assistance? Well, first of all, I think Secretary Rice spoke last night, and she talked about how we recognize that the Palestinian people have humanitarian needs. And I said that I don't want to get into speculating about what the new government may be like. That is in the process of forming now. As the President said, he would like -- we would like to see President Abbas stay in office, and continue to work to move the peace process forward. We've made it very clear that we do not and will not deal with Hamas because it is a terrorist organization that has as part of its platform, the destruction of Israel. And so our views are very clear when it comes to Hamas. Now, in terms of assistance that we provide, if Hamas is the government, then we have a policy and legal framework in place that we would have to look at. And we would make decisions at that point. We would review what our assistance is and make decisions at that point. Read more Comment (0), Email this.

MR. McCLELLAN: Well, again, what the President emphasized yesterday was our commitment to the two-state vision. The two-state vision is the way to achieve peace in the Middle East. The international community has strongly stated their support for the two-state vision. And that's what we're committed to working toward. That's the way you achieve peace in the Middle East. Read more Comment (0), Email this.

Q So then you're saying "if" Hamas is the government, well, there doesn't seem to be any doubt that it will be based on the election results and on what's happening over there today. So what you're really saying, it seems to me, is that unless Hamas renounces the charter provision that calls for the destruction of Israel, the U.S. won't deal with it. ... Read more Comment (0), Email this.

MR. McCLELLAN: Well, I think that you can look at what was taking place. And the President referred to -- the President referred to the "old guard" that was there. Read more Comment (0), Email this.

MR. McCLELLAN: But we believe -- we believe very strongly that people around the world, and societies around the world want to, one, live in freedom; and, two, that they want peace. And I think that's very clear from what the Palestinian people have said over the years. They want peace. Read more Comment (0), Email this.

MR. McCLELLAN: I think you can go and talk to people in that region, and you will hear them say that, yes, they want peace. The people in that society -- Read more Comment (0), Email this.

MR. McCLELLAN: Well, elections are about the government and it's about a competition of ideas, as the President talked about yesterday. I don't think you can ignore those facts. Read more Comment (0), Email this.

MR. McCLELLAN: We don't deal with Hamas, as I stated. Go ahead. Read more Comment (0), Email this.

MR. McCLELLAN: The President believes that the Palestinian people have gone to the polls in large numbers, in a peaceful way, free of violence, and we congratulate the Palestinian people for doing that. They have spoken at the ballot box. And now President Abbas will move forward with the new legislative leaders and work on forming a government. And that's for the Palestinian people to decide, and they have spoken at the ballot box. Read more Comment (0), Email this.

MR. McCLELLAN: Well, two things. One, we're going to continue working with President Abbas and working with the current government that is in place. We'll see how the new government unfolds. David, go ahead. Read more Comment (0), Email this.

Q Scott, I'm just trying to detangle that last statement because if the -- the new government clearly will be controlled by Hamas. You've set out for us a very clear message: We don't deal with Hamas. You're saying you do deal with President Abbas. And so you're in the situation now of having to deal sooner or later with a government that will be controlled by Hamas one way or another. So is that -- are you telling us that you will be not dealing with Hamas right now? ... Read more Comment (0), Email this.

MR. McCLELLAN: -- or the formation of a government that is unfolding at this point. Read more Comment (0), Email this.

MR. McCLELLAN: We'll see what the formation of the government is. Go ahead. Read more Comment (0), Email this.

Q Thank you, Scott. Under the McCain-Feingold campaign finance laws, individuals are permitted an aggregate amount of $37,500 to donate to candidates during a year, 57,500 political action committees and party committees in a year. There are no aggregate limits on what PACs can donate. And PACs have to register with the Federal Election Commission. Neither the aggregate limits nor registration apply to Indian tribes. They have an exemption in the law. My question, then, is, does the President believe that the law should be amended to apply the same campaign finance rules to Indian tribes, that apply to Indians and political action committees? And does he believe that Indian reservations should be treated as sovereign nations? ... Read more Comment (0), Email this.

MR. McCLELLAN: We'll work with Congress on these issues. Read more Comment (0), Email this.

MR. McCLELLAN: I haven't looked at that specific piece of legislation. Read more Comment (0), Email this.

MR. McCLELLAN: A policy in place to deal with that? No, I said there is a policy in -- Read more Comment (0), Email this.

MR. McCLELLAN: Well, there's policy and legal requirements that we have. And if Hamas is the government, then we would review aspects of our aid program under that policy and legal framework that's in place. Read more Comment (0), Email this.

Q Isn't it, though, U.S. policy, if you're not negotiating with terrorists, not dealing with terrorists, not, therefore, supporting terrorists, wouldn't it be a requirement for the United States, under its own policy, to cut off aid to a Palestinian government -- ... Read more Comment (0), Email this.

MR. McCLELLAN: On his call yesterday? It was a pretty historic day. This was the first time ever that a Senator has called for a filibuster from the slopes of Davos, Switzerland. I think even for a Senator, it takes some pretty serious yodeling to call for a filibuster from a five-star ski resort in the Swiss Alps. (Laughter.) Read more Comment (0), Email this.

MR. McCLELLAN: Les, I didn't ask you to yodel. I can hear you. (Laughter.) Go ahead, Paula. Read more Comment (0), Email this.

Q On the economy, the Congressional Budget Office, yesterday, said that the only way the administration would be able to cut the deficit in half by 2009 is to not extend all these expiring tax provisions, combined with factoring in Iraqi War costs. So I wondered what your response is to that? ... Read more Comment (0), Email this.

MR. McCLELLAN: What we've got -- and we'll be coming out with our budget again here shortly -- what is important to do in the budget is set clear priorities, fund those priorities, make sure you're meeting your most important responsibilities, such as protecting our nation from threats, and then hold the line on spending elsewhere. Congress is taking some important steps to rein in spending. We need to continue to build upon that. And that's what this President is committed to doing. We're going to keep us on track to cut the deficit in half by 2009, as the President has said. Read more Comment (0), Email this.

Q And, also, on Medicare prescription drug program, since it took effect, some drug companies have discontinued their patient assistance program, which means up to 1 million disabled and elderly are no longer getting free medication. Is the administration trying to address this problem? ... Read more Comment (0), Email this.

Q But, excuse me, the problem is, some critics have said, that under this current program, you would have to basically have up to $5,000 in drug costs before catastrophic insurance would kick in. That would be close to $2,000 in out-of-pocket expenses by some that are not covered -- ... Read more Comment (0), Email this.

Q Back on Hamas again for a second. Insofar as the President said yesterday and you said today that you can't do business with a group that engages in terrorism -- and the President mentioned yesterday can't have an armed wing and can't have destruction of Israel and its plank -- as Bill mentioned, to renounce that plank in the platform related to Israel -- the President said, can't have an armed wing. If we're talking about, sort of, the rehabilitation of terrorist groups, or a way in which organizations that have had this kind of a history can now become part of the body politic -- and Sinn Fein and the IRA is an example, or whatever -- is it as simple as that, renounce the plank relative to Israel and give up their weapons and disarm, and then suddenly Hamas is a legitimate partner to be trusted? And, if so, how does the international community, how does the U.S. enforce it, make sure that it happens? I mean, if they were to say, yes, we do all those things, these are organizations and histories of people and cultures where there's a lot of violence regardless of what's said. ... Read more Comment (0), Email this.

MR. McCLELLAN: Well, the President has talked to you -- he talked to you just yesterday about some of what he would say, so I'm not going to go too much further than that. But the President will chart a path forward for America in his remarks. He will talk about our actions to extend peace abroad and prosperity at home. And you heard him yesterday, he talked about how we as a nation have always been better and stronger when we're working to shape events, rather than being shaped by those events. We live in historic times, and it's important that we continue to lead and work to shape those events to build a better, stronger and safer America. And the President will have some new policies that he'll talk about that will reflect the priorities that the American people care most about. But this is more of a visionary and directional speech than it is a laundry list of proposals. So it's more thematic in nature is what he'll be talking about. And you heard some of the areas that he'll touch on yesterday when he started the press conference here in this room. The President is optimistic about our future and confident about the path we are charting to make our country safer and stronger and better. Read more Comment (0), Email this.

MR. McCLELLAN: Well, I think I kind of just gave you a hint of it. I don't want to go too much further than that at this point. It's still a few days off. You'll still be hearing more from him. He's going to be participating in some speech preparation later this afternoon. He's already participated in some earlier this week that was really focused more on the editing of the remarks. It's more of an editing session. And you'll hear more from him soon. Read more Comment (0), Email this.

MR. McCLELLAN: We'll give you an estimate as we get closer to it. Go ahead. Read more Comment (0), Email this.

MR. McCLELLAN: Glad you're in. Read more Comment (0), Email this.

Q This is my question -- I have two. A tunnel half a mile long has been discovered between Mexico and the United States. This well-constructed tunnel was reportedly used to smuggle drugs. But a Homeland Security official says, it could also have been used by terrorists to transport people and weapons into the U.S. Is the President concerned that homeland security is almost impossible when our southern border can be so easily penetrated? ... Read more Comment (0), Email this.

Q I have one more question. The President says he will not deal with Hamas as long as it is committed to the destruction of Israel. But since Hamas is now the duly-elected party of the Palestinians, how can the United States ignore it? ... Read more Comment (0), Email this.

Q Scott, I have a two-part. Within hours of the President's statement "a political party that articulates the destruction of Israel as part of its platform is a party with which we will not deal," former President Jimmy Carter held a news conference in Jerusalem, where The Jerusalem Post reports he "urged the international community to directly or indirectly fund the new Palestinian government, even though it will be led by an internationally declared terror organization." And my first question. Does the White House know of any Jimmy Carter plea for the support of a mafia? And why would that be any worse than this? ... Read more Comment (0), Email this.

MR. McCLELLAN: You want to ask President Carter, you can ask President Carter about his remarks. But we've made our views very clear. Read more Comment (0), Email this.

Q On the day after the imperial Japanese at Pearl Harbor killed a smaller number of Americans than were killed on 9/11, the 1941 Republican leadership came as a group to the White House to pledge support in wartime to Democrat President Roosevelt. And my question: Have any of the Democratic leadership come to the White House to assure President Bush of their strong support in this war? ... Read more Comment (0), Email this.

MR. McCLELLAN: Well, we just had some Democrats here that were just here earlier this week talking about the importance of succeeding in Iraq. There were Democrats and Republicans sitting in there, in the Roosevelt Room. The President thought it was important to reach out to them as he has done with other Democrats and Republicans in Congress. And he will continue to do so, reaching out to work with them on these important priorities. All of us stand firmly behind our troops, and we must work together to make sure they have what they need to get the job done. And that's what this President has done and will continue to do. And it's important to listen to ideas from others. And that's part of what the President has been doing, as well. Read more Comment (0), Email this.

MR. McCLELLAN: Go ahead, Victoria. I'll come back to you. Go ahead. You're jumping in. Hang on. Go ahead. Read more Comment (0), Email this.

Q Scott, you said the other day that Michael Brown is now a private citizen. And in reply to a question about the Katrina investigation yesterday, President Bush talked about executive privilege. Do you expect the White House -- or does the White House intend to have Michael Brown use executive privilege? Or can he use executive privilege if and when he testifies? ... Read more Comment (0), Email this.

MR. McCLELLAN: Well, there are a lot of documents that you reference that I've seen reported in the media. So, obviously, they're getting their documents. There were some earlier this week. Read more Comment (0), Email this.

MR. McCLELLAN: April, go ahead. Read more Comment (0), Email this.

MR. McCLELLAN: Mister. Read more Comment (0), Email this.

MR. McCLELLAN: He's the Deputy Homeland Security Advisor. Read more Comment (0), Email this.

MR. McCLELLAN: And he does a great job. Read more Comment (0), Email this.

MR. McCLELLAN: I can't agree with your characterization there and the way you make it sound, first of all. But he was -- I don't have a report from the hearings -- or it wasn't a hearing, I guess it was a specialized briefing. He had provided a specialized briefing before. Secretary Chertoff has testified; others have testified before the committees. But we felt this was an important way to help them get the information they need to do their job. But the President believes senators ought to be able to have confidential conversations with their advisors, and most presidents have felt that they ought to have the right to have confidential conversations with their advisors, too. Read more Comment (0), Email this.

MR. McCLELLAN: It's important for the President of the United States to be able to receive open, candid, and honest advice from his staff. It's important for members of the Senate to receive that same kind of advice. And the President talked about the chilling effect it would have if that principle was violated. Read more Comment (0), Email this.

MR. McCLELLAN: The Quartet put out a statement yesterday saying that it's important to respect the elections and to respect the constitutional process that is in place as it moves forward, and do so in an atmosphere of calm and security. And so we continue to urge that, as well. Carl, you had something. Read more Comment (0), Email this.

MR. MCCLELLAN: Good morning, everybody. Early briefing today. Let me just update you on a couple of things on the President's schedule. First of all, this morning, the President had a very good conversation with Prime Minister designate Stephen Harper, of Canada. The President called to offer his congratulations on the Prime Minister-designate's party's strong showing and victory in the parliamentary elections that took place earlier in Canada. Secondly, the President, just a short time ago, concluded a bipartisan meeting with some members of the Senate. This is another in a series of meetings that we have been having with members of Congress to reach and talk to them about our strategy for victory in Iraq. And there was -- this was a very good discussion. This was an opportunity for these leaders to hear from our ambassador in Iraq, and hear from General Casey who is on the ground overseeing our forces there. It was also an opportunity for the President to hear from these leaders, and listen to ideas that they had or concerns that they have, and work to address those. And the President very much enjoyed having the opportunity to sit down with these leaders today, and updating them, as well as hearing from them. And then here shortly, the President looks forward to going to the National Security Agency. The President wants to personally thank all the employees at the National Security Agency on behalf of the American people for all that they do 24/7 to protect us from threats that we face. They do a great job working around the clock with one purpose in mind, and that is the safety and security of Americans. And following that, the President will be touring the National Security Agency and then making some remarks to the press, and talking about the terrorist surveillance program and how that is a vital tool in our efforts to disrupt plots and prevent attacks from happening. And with that, I am glad to go to your questions. Read more Comment (0), Email this.

Q Scott, Senator Specter sent the Attorney General a list of questions that he was going -- planned to ask at the hearing about the NSA surveillance program. And one of the questions he asked is, would you consider seeking approval from the FISA court at this time for the ongoing surveillance program. Is that something the administration is thinking about? ... Read more Comment (0), Email this.

Q I think that -- I mean, the way I read this question, he's asking, will you ask the FISA court for approval of this program -- not specific instances, but will you ask the FISA court if this is -- if this program, the overall program, is sanctioned under the law. And that's the -- ... Read more Comment (0), Email this.

MR. McCLELLAN: Well, that's why I leave it up to them. If there's anything more they want to say, then I would leave it up to them. Read more Comment (0), Email this.

Q Can I just follow on this point, because let's be clear about a couple of things. First of all, the President argues, asserts, that he has the power to unilaterally authorize this wiretapping, okay? It's not -- he doesn't have the monopoly on the truth of how -- ... Read more Comment (0), Email this.

MR. McCLELLAN: Same authority. Same authority, David. Read more Comment (0), Email this.

MR. McCLELLAN: No, that's not -- hang on -- that's not in dispute. And look at the Associate Attorney General under the Clinton administration. The courts have upheld this authority in the past. Look at the federal courts. The President talked about it and we provided it in a document. So that's wrong. Read more Comment (0), Email this.

MR. McCLELLAN: That the courts haven't upheld it? Read more Comment (0), Email this.

Q My question is, instead of spending time trying to fine-tune the rhetoric over what you want to call this program for political purposes, why not seek to amend FISA so that it can better suit your purposes, which is another thing the previous administration did when it wasn't considered to be agile enough? So why not, if you want the program to be more responsive, to be more agile, why not seek to amend FISA? ... Read more Comment (0), Email this.

MR. McCLELLAN: Well, no, let me back up, because I talked about this the last couple days. I mean, it's a very good question and an important question. FISA is an important tool. We use it. General Hayden talked about that. When we were briefing members of Congress over the course of the last few years -- I think it was more recently, over, maybe, the last couple years -- I think the Attorney General talked about it -- we talked with congressional leaders, bipartisan congressional leaders, about this very issue: Should we go and get legislation that would reflect the authority the President already has? And those leaders felt that it could compromise our national security interest and this program if we were to go and get legislation passed. Because we don't want to let the enemy know about our play book, and the more you talk about this program, the more potential it has to harm our national security interest. That's why we don't get into talking about the operational aspects about it. But it is important for the American people to understand exactly what this program is and how limited it is and what its purpose is. There's been some misrepresentations. Now, with that said, as I pointed out, we work very closely with Congress. We'll continue to work closely with Congress as we move forward. But the President has the authority and the responsibility to do what he's doing and he's going to keep doing it. Read more Comment (0), Email this.

Q Another question, on Katrina. Why won't the White House provide the specific information that senators want who are trying to do a detailed postmortem on what went wrong, particularly who knew what when from the President and among senior staff? Isn't that an important question to answer? ... Read more Comment (0), Email this.

Q You always fall back on that, but the President also made a promise to report to the American people about where the ball was dropped, and if it was, in part, dropped within this White House, doesn't he have an obligation to forego the crutch of privilege and tell people what the White House was told, when it was told it, and where the ball got dropped? ... Read more Comment (0), Email this.

Q What's the President's purpose in going to the NSA today? Is it to buck up morale there? Because we're hearing from some people inside the agency that they're feeling a little put upon by all the examination of what they've been doing for the last four years. ... Read more Comment (0), Email this.

MR. McCLELLAN: No, I heard what you said, you talked about morale. And as I said, General Hayden didn't seem to give any indication that that was the case. But it is important to thank those who are working behind the scenes to do everything they can to save lives. And so the President will express the gratitude of the American people for what they do round-the-clock. But General Hayden, I think, talked about that very issue the other day, and the personnel at the National Security Agency and the work that they're doing. Read more Comment (0), Email this.

MR. McCLELLAN: Well, General Hayden is an expert on these matters. He is someone that headed the National Security Agency for a long time. He is now the Deputy Director of the National Intelligence, our number two intelligence official. He is someone of great expertise and experience. And I think he laid it out very clearly that he believes that if he had had that authority, the National Security agents had that authority prior to 9/11, that they might have been able to detect some of what was going on and possibly prevent some of what was occurring. Those were his words; I'm not going to dispute what he said. We fully support the great job that he's been doing. I think it's best to hear it from him -- Read more Comment (0), Email this.

MR. McCLELLAN: You can extrapolate what I said and what he said. Read more Comment (0), Email this.

MR. McCLELLAN: After Martha. Martha has got the floor, and then I'll go to Ivan so he can get to the Pentagon. I've got to go to the National Security Agency, so I'm trying to go through this. Read more Comment (0), Email this.

Q Back to the NSA. The White House last night put out paper backing up its claims that this was a terrorist surveillance program, saying the charges of domestic spying -- you defined what "domestic" meant. Isn't one end of that phone call on domestic soil? Why is the charge of it being domestic spying so far off? ... Read more Comment (0), Email this.

MR. McCLELLAN: I think it leaves an inaccurate impression with the American people to say that this is domestic spying. Read more Comment (0), Email this.

MR. McCLELLAN: For the reasons that General Hayden has said, for the reasons that others have said within the administration, and for the example I just provided to you. You don't call a flight from New York to somewhere in Afghanistan, a domestic flight. It's called an international flight. Read more Comment (0), Email this.

MR. McCLELLAN: This is international communications that are being monitored -- Read more Comment (0), Email this.

MR. McCLELLAN: It's what it is. Read more Comment (0), Email this.

MR. McCLELLAN: It is what it is. Read more Comment (0), Email this.

MR. McCLELLAN: If there is an al Qaeda person operating inside the United States and talking to someone outside the United States, you bet we want to know what they're saying. Read more Comment (0), Email this.

MR. McCLELLAN: Could be outside the United States talking to someone inside the United States, too. Read more Comment (0), Email this.

MR. McCLELLAN: Look, if some want to try to defend it and say that it is domestic spying, they're leaving the American people with an inaccurate impression, just like they would be if they called an international call a domestic call. Read more Comment (0), Email this.