MR. McCLELLAN: He already has. In fact, when he returned from his trip, one of the first things he did was sit down with some of the key leaders on our foreign policy in Congress, a bipartisan group, and talked to them about the importance of this agreement. And I think you've seen there's been very good response from members of Congress and positive feedback about this significant agreement. This is an agreement that will really help us move forward on the energy front, and help bring India -- at least its civilian nuclear programs -- under the NPT obligations for the first time. And so it's a significant development. And it's based on a practical approach. And it's based on our relationship with India, a country that has not engaged in proliferation. Go ahead. Read more Comment (0), Email this.

MR. McCLELLAN: Well, let me keep going. I'll try to come back. Read more Comment (0), Email this.

MR. McCLELLAN: I think Tony Snow is going to do a great job for the President. I saw him earlier today, and looked up at him and told him, "I used to be your height before I started in this position." (Laughter.) Read more Comment (0), Email this.

MR. McCLELLAN: He's someone who brings a good outside perspective. He's got a lot of diverse experience in the media, which will be very helpful. He's spent 25 years in the media, the print side, the radio and TV broadcast side of things, as well. He's also someone that's worked in the government. And he's certainly got some strong views, and I think that's a good thing. Read more Comment (0), Email this.

MR. McCLELLAN: Well, I think that Tony Snow is going to do an outstanding job for the President. And the President looks forward to him joining the team here shortly, and I look forward to doing all I can to help him. Read more Comment (0), Email this.

MR. McCLELLAN: Well, I had a good conversation with him over the weekend, and we talked about this position. And I provided him some of that advice. And I did so in private. I look forward to continuing to provide him some of my thoughts and insights into this position. Go ahead. Read more Comment (0), Email this.

MR. McCLELLAN: Yes, the President actually yesterday talked about every little bit can help. Now, you bring up a very good point -- the underlying problem is that we are dependent on foreign sources of energy. We are dependent on foreign oil. And the President made it very clear that we have got to address that root cause of why we have high gas prices. This is something that has been building for decades. And that's why the President outlined a four-point plan yesterday. We're taking a number of actions on the short run side of things because we can provide some help. But, ultimately, this is a problem that must be solved in a comprehensive way. And that's why the President outlined his advanced energy initiative to really transform the way we power our cars and homes, and lessen our dependence on foreign sources of oil -- by making use of ethanol and hydrogen and pursuing other ways to promote alternative sources of energy. And that's what we have to do in the long run. In the short run, again, there are steps that we can take to help, but we also have to continue acting on solving the root cause. This is a supply and demand problem. We have tight supplies right now, and that's pushing the price of gas up -- it's pushing the price of oil up, which pushes the price of gas up. So that's why the President announced several steps that we're taking to help address the supply side in the short-run. But this is a problem that we see recur year after year, and it's because of our increasing dependence on oil, particularly foreign sources of oil. Read more Comment (0), Email this.

Q Scott, if domestic oil drilling was approved in ANWR, would there be any laws in place that would say you can only sell it to the American public and that the big oil companies could not sell that oil to the highest bidder in China, or India -- because if the free market system worked, it wouldn't relieve the prices at the pumps for Americans. ... Read more Comment (0), Email this.

MR. McCLELLAN: And so if you couple that with other steps that you're taking, you would have more supply available, and that would help address high gas prices. Now, many Democrats have opposed those efforts to expand domestic production. The President believes that while we're working to invest in new technologies and promote alternative sources of energy, we also need to be expanding domestic production. And we can do so with respect for our environment, particularly with new technologies that are available to us in this day and age. And there would have been a significant amount of additional oil that would be available today if that had been signed into law. Read more Comment (0), Email this.

MR. McCLELLAN: Well, you bring up a very good point, over the long haul, that -- I mean, there is increasing demand for oil, particularly coming from countries like China and India. That's why we have to address the underlying problem, which is our dependence and our addiction to oil, as the President has talked about. It's not a solution, but it's one of the steps we can take, that it can have a more immediate impact in the short run. Read more Comment (0), Email this.

Q Going back to Karl Rove, was the decision made it was potentially too embarrassing to keep him in the position of the policy portfolio, as well as the politics portfolio, and that that was why he was moved out of it -- knowing that these grand jury appearances and what might follow was coming up? ... Read more Comment (0), Email this.

MR. McCLELLAN: Well, I don't think he necessarily has formal remarks. I'm sure you all will hear from him while he's down there participating in volunteer projects, both in Louisiana and in Mississippi. We put out a statement of administration policy. It's something that we worked on with Senate leaders, and that policy says that the cap for the emergency spending legislation ought to be at $92.2 billion, excluding any funding for pandemic influenza. Now, we put, I think, $2.3 billion in our '07 budget for pandemic influenza preparedness, and we would be fine with that being included in the emergency spending. But it's important that Congress move forward on the emergency spending and get it passed as quickly as possible, because it provides important resources, vital resources, for our troops who are waging the war on terrorism abroad, and important funding for the Gulf Coast recovery and rebuilding efforts. The President, this afternoon, is going to be participating, or hosting a meeting to talk with his key leaders about where we are on the recovery and rebuilding efforts and the progress that we've made, as well as looking ahead to the additional steps that we're taking. Read more Comment (0), Email this.

MR. McCLELLAN: These are considered OTR, so we'll keep you posted as we get down there. Go ahead, Les. Read more Comment (0), Email this.

MR. McCLELLAN: Hang on, you've got two parts. Let me go to Carl, he has one part. (Laughter.) Read more Comment (0), Email this.

MR. McCLELLAN: This President has made sure that our troops are fully funded. If you look at our defense budgets, they have significantly increased under this administration, because we are trying to accomplish two things. One, we're working to win the war on terrorism, and we are winning. But this is a long struggle that we're engaged in, and we've got to continue to stay on the offensive and take the fight to the enemy, and that's exactly what we are doing. And, two, we have passed a number of emergency spending bills during this time of war to make sure our troops have everything they need to carry out that war and to protect and defend themselves. So I think all you have to -- Read more Comment (0), Email this.

MR. McCLELLAN: Wait -- I think all you have to do is look at the record. We also have a defense appropriations that is going before Congress. And we have called for additional increases in the defense spending, while holding the line on spending elsewhere in our budget, because that is a top priority item. The number one priority for this President is the safety and security of the American people, and that means continuing to take the fight to the enemy abroad, to win the war on terrorism. Read more Comment (0), Email this.

MR. McCLELLAN: Okay, a three-part question. (Laughter.) Read more Comment (0), Email this.

MR. McCLELLAN: Look, I think that we share a goal of making sure our troops have everything they need as they carry out the war on terrorism. And we have met that commitment and we will continue to do so. And that's why they need to move forward and pass this emergency spending legislation, and move forward and meet the President's priorities for the Defense Department that we outlined in our budget. Go ahead. Read more Comment (0), Email this.

Q Scott, a two-part. A citizen project affiliated with the Minutemen Civil Defense Corps has announced that it is planning to build a physical fence along virtually the entire expanse of the U.S.-Mexico border. Since the federal government is reluctant to do the job itself, the group also says the fence, which is modeled after Israel's security fences in the West Bank and Gaza, will cost them about 1/400 of what it would cost the government to put up the same fence. And my question, would the President support such an effort if it costs the government nothing in labor or material, if it stemmed the massive flow of illegal immigrants daily crossing our southern border? ... Read more Comment (0), Email this.

MR. McCLELLAN: You were not considered, Les. (Laughter.) Read more Comment (0), Email this.

MR. McCLELLAN: I think it's healthy to have a diversity of viewpoints from within the media. Read more Comment (0), Email this.

Q The Washington Post reported on Sunday that according to intelligence officials the White House has recently been asking the CIA questions about the political affiliations of some of its senior intelligence officers. Has the CIA been complying with the White House's requests? ... Read more Comment (0), Email this.

MR. McCLELLAN: Well, I think to some extent it's different in Mississippi from Louisiana. And to another extent, there are similar issues that we're continuing to deal with -- continuing to support the rebuilding efforts and help people get back on their property and rebuild their homes. The debris removal, there's a lot of progress that has been made in Mississippi. There's good progress that's been made in Louisiana, but there's much still to do in terms of the debris removal. So we've got to continue to support the people along the Gulf Coast. The President is going to be hearing more about where we are in some of these efforts, and I'm sure asking a lot of questions, to make sure that we're doing everything we can from the federal level to work with the states and local communities to help them as they rebuild those communities. Read more Comment (0), Email this.

MR. McCLELLAN: Well, this was a hurricane of unprecedented proportions. And it was a catastrophic natural disaster, one like we haven't seen before, that covered a large area of the Gulf Coast, some 90,000 square miles of devastation. And so I think you have to look at in perspective. It's going to take some time to fully rebuild the Gulf Coast region. But the President has made it very clear that the federal government is going to do its part to help. We have a responsibility to do so, and we are going to meet that responsibility. And that's why the President has provided well over $80 billion already allocated in funding to help with those rebuilding efforts. We've asked for an additional, I believe it's more than $19 billion in the emergency spending legislation. So we're talking about providing already over more than $100 billion in funding from the federal level to help with those efforts. And we've worked to expedite the process in terms of loans from the small business administration. We immediately worked to get assistance to people in the region, cash assistance because of the unprecedented nature of this hurricane. And there's much more work to do. But it is something we have remained focused on, on a daily basis. And that's why the President tapped Don Powell, the chairman of the FDIC, to coordinate our recovery efforts under the direction of Secretary Chertoff. Read more Comment (0), Email this.

MR. McCLELLAN: Our view hasn't changed, and we support it being where it is. And there's a number of steps I think that you will want to go back to, that the Department of Homeland Security has taken to strengthen FEMA and improve its response efforts. Go ahead. Read more Comment (0), Email this.

MR. McCLELLAN: Well, I think any Press Secretary brings their own unique style and perspectives to the position. And so I think that if there are any changes to announce, Tony will do that as he gets in here and starts to begin his work. And so I think those are questions best directed to him. Read more Comment (0), Email this.

MR. McCLELLAN: Putting up with you. (Laughter.) Read more Comment (0), Email this.

MR. McCLELLAN: I'm sorry? What kind of legal process is going on? Read more Comment (0), Email this.

MR. McCLELLAN: Well, there are legal processes in place for addressing those issues. Certainly, when it comes to the humanitarian situation in North Korea, we are very concerned about the plight of the North Korean people and the suffering that they face under this regime that is in power. We've spoken out about that many times. It is a very high priority for the President, something he brings attention to. Every time he sits down and meets with a world leader, he brings this subject up, because this is a repressive regime that is violating people's human rights, and it's a situation that the President believes the world should not tolerate. And we will continue calling attention to it. And we will continue to do what we can to help those people. Go ahead, Rick. Read more Comment (0), Email this.

MR. McCLELLAN: Well, I think Secretary Rice spoke about it yesterday. She talked about such comments and threats only further isolate the regime and the people of Iran from the rest of the world. We are pursuing a diplomatic solution to prevent the regime from having a nuclear weapon know-how, capability, or weapon. This is a regime that continues to defy the international community. It continues to ignore and refuses to abide by its obligations. The Security Council, the United Nations, and the Board of the International Atomic Energy Agency has called on Iran to take specific steps, to come clean and to comply with its obligations. This is a regime that continues to further isolate itself from the rest of the world, by its statements, by its threats, and by its actions. And that is why we are working with other members of the Security Council, it's why we are working with friends and allies, to make sure that action is taken on the diplomatic front to prevent this regime from obtaining nuclear weapons or nuclear weapon know-how. And the proliferation issue that you bring up, or concern that you bring up only further increases the concern of the international community about this regime's intentions. Read more Comment (0), Email this.

Q Well, so far there's all this great concern everywhere. Every week, people are wringing their hands in concern over Iran. And there's always the diplomatic methods being pursued, but they don't seem to be getting anywhere. And if anything, Iran -- ... Read more Comment (0), Email this.

MR. McCLELLAN: Well, this is a problem that the regime has with the international community, with the world. So we are working with all our partners in the international community to address the threat posed by this regime and address this regime's pursuit of nuclear weapons under the cover of a civilian program. And those are discussions we continue to have with our friends and allies and with members of the Security Council. Read more Comment (0), Email this.

MR. McCLELLAN: Doesn't make decision based on polls. Read more Comment (0), Email this.

Q On polls, right. But I'm wondering, with many poll and approval numbers stuck in the 30s for the President, I'm just wondering, do these issues come up at the senior staff meeting? What does it do for morale for the advisors working with the President? ... Read more Comment (0), Email this.

MR. McCLELLAN: I'm saying we'll leave the political analysis to everybody else. What we're going to keep doing is focusing on the priorities the American people care most about. They're priorities that they share with the President of the United States. And we are acting, and we are getting things done. We have a record of accomplishment. And this President is determined in the remaining thousand days of this presidency to continue to get things done for the American people, and continue to build a more prosperous America, and make the world a safer place. Read more Comment (0), Email this.

Q The President is going down to the Gulf area, and there has been some discussion that people who are now back in Ward 9, trying to rebuild their homes, and that they have not gotten access to -- whether it's bottled water or whatever -- supplies, sort of may be because they don't want people to rebuild in Ward 9, so that's sort of part one. What's the President's position about rebuilding Ward 9? ... Read more Comment (0), Email this.

Q And secondly on again, the same Gulf area, the insurance industry is not federally regulated, but there have been a lot of problems with the insurance agencies and the insurance companies. Has the President had any private conversations, or even group conversations with some of the insurance companies? ... Read more Comment (0), Email this.

MR. McCLELLAN: I don't think today is the day to get into all the reflecting. It's not the couch trip day yet. I'm still here for another week and a half, two weeks, and I think we can talk about that as I start walking out the door. Right now I just see the door. But I'm looking forward to it. My wife is looking forward to it, as well. In all our time together, it has only been in this position, so we're looking forward to starting that next chapter in our life together, and spending a little more time with her. Read more Comment (0), Email this.

MR. McCLELLAN: All right, good afternoon, everybody. You heard the President talk earlier today about some short-term steps we're taking to address high gas prices, as well as our efforts in the long run to address the root cause of high energy prices. This is something that has been building for decades. It's not something that we got into overnight, it's not something we're going to get out overnight -- get out of overnight. But the President is concerned particularly with the summer travel season coming up about rising gas prices. And there are steps that we can take in the short-run to help address those high energy prices. And we also need to continue to move forward in a bipartisan way on the President's initiative to really transform the way we power our cars and our trucks, and reduce our dependence on foreign sources of oil. As the President said, we're addicted to oil, and we need to reduce our dependence on foreign sources of oil. That's how we're going to solve this problem over the long run. In the meantime, we are going to continue to look for ways we can help address high gas prices in the short run. And that's what the President talked about earlier. With that said, our Director of the National Economic Council, Al Hubbard, is going to be holding a conference call at 2:15 p.m. today to discuss President's four-point plan for addressing high gas prices in greater detail, and answer some of the questions you might have on specific issues relating to it. With that, I'll be glad to go to your questions. Read more Comment (0), Email this.

MR. McCLELLAN: Well, you heard the President talk about how supplies are tight. Global demand is rising faster than supply. And that's one of the reasons we're in this situation. He laid out the reasons why gas prices are high right now, and he talked about how experts predict that gas prices will continue to be high over the summer. And when supplies are tight like this, every little bit helps. And that's why we're acting on a number of fronts to address high gas prices in the short run. And these are all steps that we believe can help in the short run while we continue to work and move forward on a comprehensive solution to eliminate the cause of high gas prices. That's the way that we're ultimately address this issue and solve it for the long run. We have got to reduce our dependence on foreign crude. Read more Comment (0), Email this.

MR. McCLELLAN: Well, there are steps we can take in the short run, and that's what the President was talking about today. And that's what we're going to do to help address the situation. As the President talked about in his remarks, our economy is strong and growing. And we have a very strong economy. We have seen millions of jobs created over the last few years, an unemployment rate that is down to 4.7 percent. But high gas prices are like an additional tax on working families and working Americans. It puts a strain on families that are trying to live within a budget. It puts a strain on small businesses that are trying to create jobs. It puts a strain on farmers that are trying to get product to market. So we have a responsibility at the federal level to do all we can to help address that situation, and that's why the President is continuing to take the steps that he outlined. Remember just last year, we passed a comprehensive energy plan, and that's an important approach for the long run, and an important and comprehensive way to address the root cause of why we have high energy prices. Again, this is something that has been building for decades. And it's not something we're going to get out overnight. But we have a responsibility to help address it in the short run, and that's what these steps will do. Read more Comment (0), Email this.

Q A lot of Americans are going to listen to what the President had to say today; they're going to digest the four-point plan, and the first question is going to be, that's fine; what does it mean dollars and cents to me in the near-term, this summer when they gas up to go on vacation? So can you give us any indication as to that will translate to -- rough dollars and cents -- in terms of a difference -- ... Read more Comment (0), Email this.

MR. McCLELLAN: Absolutely not. Read more Comment (0), Email this.

MR. McCLELLAN: No, and one of the things that the President emphasized today is that this is something that we can work together on to do for the American people. The Advanced Energy Initiative is a bold proposal that will really go to the root cause of why we are in this situation today. Again, it's not something that happened overnight. It's something that's been building for a long period of time. And we need to continue to act on that front. But in the short run, there are some steps we can take. And I think I've talked about that in this room before. The President has talked about it, as well. And energy companies have a responsibility, too. The President pointed that out. When the price of oil is at record levels, energy companies should be reinvesting some of their profits back into alternative sources of energy, new technologies, increasing domestic supply, increasing refining capacity. Those are all steps that can help. All of us have a responsibility to act when we're in a situation like this. There are also steps that consumers can take to help address this situation, as well. And the Department of Energy has put that out. Go ahead. Read more Comment (0), Email this.

MR. McCLELLAN: No, that's what I was just pointing out, and that's what the President talked about in his remarks today is that these steps can help address high gas prices, and help reduce gas prices, but this is a problem that has been building for decades, and we've got to find a solution for the long run that will eliminate the cause of why we are in this situation today. And that's why we're continuing to act. We have acted, we're continuing to act, and the President is concerned about the strain that it puts on families and working Americans. Read more Comment (0), Email this.

MR. McCLELLAN: No, I didn't say that. In fact, these steps can help address high gas prices. But what I said was that experts, and the President talked about that in his remarks, predict that we'll continue to see high gas prices over the busy summer travel period because of the supply situation. This is a supply and demand problem that we are in, and that's why the President is acting on a number of fronts -- first and foremost to make sure that consumers are treated fairly, to make sure that there's no price gouging. We will not tolerate price gouging, and that's why this administration has continued to act to make sure that when you have the spike in gas prices that there is not unfair manipulation of prices or any price gouging going on in the market. But the President also announced some other steps that we're taking, such as deferring deposits to the Strategic Petroleum Reserve for a short period of time and then -- delaying those deposits, and then we'll start filling it again back in the fall. The Strategic Petroleum Reserve has a large amount of oil in it right now that we believe is sufficient in case there is a major supply disruption. So that's why we took that step. And then there are other steps we're taking, too, such as calling on Congress to speed up the permitting process for refineries. We have to address it on all fronts, and every step we take can help a little bit to address it in the short run. Read more Comment (0), Email this.

MR. McCLELLAN: Well, I think the President actually talked about this in his remarks earlier today. There are some Democrats, in the past, who have advocated raising taxes or capping prices. And that is a failed approach. It's a failed command-and-control approach of the past. We have seen that approach tried, tried in the '70s. The President has a better approach. He believes that that would be the wrong approach, if someone is advocating raising taxes or capping prices. Energy companies don't need to be receiving taxpayer funded incentives when the price of oil is at record levels. And the President made that very clear in his remarks. And energy companies have a responsibility to reinvest their profits back into alternative sources of energies, new technologies, expanding domestic production and expanding refining capacity. Go ahead, Connie. Read more Comment (0), Email this.

MR. McCLELLAN: I'm still here for a little while. Read more Comment (0), Email this.

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

MR. McCLELLAN: Well, our embassy yesterday indicated that we have offered to assist in any way that is needed. The President had a good call with President Mubarak earlier this morning. The President extended our condolences on behalf of the American people for the loss of life. There were a number of Egyptians who lost their life. A number of people were wounded, as well, including, I think, four American citizens was the last I heard. So the victims and their families remain in our thoughts and prayers. President Mubarak indicated that he was going to pursue those who are responsible and bring them to justice. We remain engaged in a global war on terrorism, and the United States stands strongly with the Egyptian people as we wage this war and prevail in this war on terrorism. We will continue to take the fight to the enemy abroad. Read more Comment (0), Email this.

MR. McCLELLAN: Not meet the deadline -- Read more Comment (0), Email this.

MR. McCLELLAN: Well, I think they've said a lot of things, and I think they've said more than just what you said. I mean, I think they've said that they intend to continue their enrichment activity. The United Nations Security Council and the IAEA board made very clear what the regime needs to do. The regime is continuing to move in the opposite direction. The Security Council will be receiving a report from the Director General of the International Atomic Energy Agency here later this week. We expect that it will show that the regime remains in non-compliance with its obligations, given that the regime has publicly said it is continuing to move forward on enrichment-related activity. It's time for the Security Council to look at the next step. Secretary Rice has talked about that. It's time for the Security Council to look at what action needs to be taken for this regime's continued defiance. This is a regime that continues to move on the opposite direction. It needs to be building confidence with the international community. Instead, it is defying the international community. And it's important to continue to keep international pressure on the regime to come clean and comply with its obligations. I think you're seeing by their statements that they only want to escalate the situation, that they are continuing to move forward on defying the international community, and that somewhat ends any premise that their program is for peaceful purposes. That has been our concern all along, that they are developing nuclear weapons under the cover of a civilian program. That's why we're working to find a diplomatic solution to get the regime to change course. Read more Comment (0), Email this.

MR. McCLELLAN: Well, I think we expressed our views on the most recent statements by Osama bin Laden the other day. Clearly this is a leader and head of an organization that is under a lot of pressure and that is on the run. We are winning the war on terrorism, but the threats remain. We remain engaged in the war on terrorism. We take the threats seriously. That's why we're doing everything within our power to continue to take the fight to the enemy and continue to prevail in this war on terrorism. And that's exactly what we will keep doing as long as this President is in office. Read more Comment (0), Email this.

MR. McCLELLAN: We are continuing to provide humanitarian assistance to the Palestinian people. We actually increased some of that aid. But one thing we will not do is deal with an organization that advocates violence and terrorism as a means to attain its objectives. And this is an organization that -- and government now that the United Nations and the rest of -- or the Quartet has called on to renounce violence, to recognize Israel's right to exist, and to work with the international community by abiding by the previous agreements of the Palestinian Authority. And that's what it needs to do. It has a choice to make. But as long as it continues to hold the policies that it does, and does not meet those commitments, we will not deal with Hamas. Go ahead. Read more Comment (0), Email this.

MR. McCLELLAN: That's right. Read more Comment (0), Email this.

MR. McCLELLAN: This is a new guy at the White House. They speak on virtually a weekly or bimonthly basis, and we don't get into reading out those calls. But obviously, they did talk about the formation of the Iraqi government. This is a very hopeful moment. It's something the President talked about with the bipartisan group of senators that were here earlier today. No matter where you stood before or where you stood on some of the decisions that were made, we can all agree that this is a hopeful moment and the Iraqi leaders are really laying the foundation for a democratic Iraq to emerge in the broader Middle East. Read more Comment (0), Email this.

MR. McCLELLAN: Well, that was a decision that was made by, I think, the Central Intelligence Agency. I think they put out a statement on that last week. Remember, Director Goss had talked about how there had been some unauthorized leaks of classified information that had severely harmed our national security. And in that statement he talked about how he directed that there be an internal investigation undertaken. And as a result of that investigation, there was some action that they took last week. Read more Comment (0), Email this.

Q So how is it, though, that the CIA was able to act so quickly in somebody who they think linked classified information? Here it is almost three years after Valerie Plame's name was leaked, the White House still doesn't know who leaked that information. How is it that the CIA -- ... Read more Comment (0), Email this.

MR. McCLELLAN: What the President directed was that we cooperate fully with the special prosecutor. And that's what we've done. Read more Comment (0), Email this.

MR. McCLELLAN: Well, I think they talked about it, and how they conducted an internal investigation to get to the bottom of the matter. The leaking of classified information is a very serious matter. And the unauthorized disclosure of classified information can severely harm our national security. We have talked previously about the terrorist surveillance program and how the unauthorized disclosure of that program has shown the enemy our playbook. We are engaged in a difficult and long war against a bunch of ideological extremists who want to do everything they can to stop the advance of freedom in this world and want to harm innocent Americans and innocent people in the civilized world. And that's why it's important that we not show them our playbook. So the leaking of classified information is a matter that the President takes very seriously. Go ahead. Read more Comment (0), Email this.

Q Two questions. What our poll says, I think, the President is doing his best in many areas. How would the President assess his 1,000 days in office? And also, don't you think that by bringing oil prices down and Osama bin Laden at home, or to justice will bring his ratings up? ... Read more Comment (0), Email this.

Q Second, on Iran -- not on Iran. I would agree with the Washington Post editorial the other day that the lady, Wenyi Wang, who protested on the White House lawn, of course, there's no doubt about it that she used the wrong platform to protest. But at the same time, don't you think she had a message for both Presidents how the Chinese are being prosecuted in China, and human rights and millions are being killed or sent in labor camps, and there are -- like Tibetans and others? So how President took this message and the Chinese President? ... Read more Comment (0), Email this.

Q Gas prices again, Scott. On the subject of the ongoing -- or the new investigation into whether or not there may or may not be price gouging by the attorneys general, as directed by the FTC and the DOJ, has there been any indication from previous FTC studies in the wake of Katrina, or for that matter, information that has merely crossed the White House transom that suggests that there has been collusion in the oil industry, or with gas -- ... Read more Comment (0), Email this.

MR. McCLELLAN: No, because we can address it by moving forward on the President's Advanced Energy Initiative, and really transforming the way we power our cars and our trucks. That's why the President said, we need to get off our dependence on foreign oil. We need to look at new ways to get energy. And the President has outlined some very practical steps that we can take. And we need to begin now. Remember, if we -- the President talked about expanding domestic production in his remarks, as well. There are four key parts to his plan that he outlined. If ANWR had passed and been implemented, we would have additional oil available today. It was passed a decade ago, yet it was vetoed by his predecessor. So we have to act on all fronts. And that's why the President outlined the steps that we've been taking and are continuing to take to address things in the short run. Read more Comment (0), Email this.

Q If we can just sort of split the long term versus the short run, then. In the context of the short run, with all the initiatives that the President -- the four-point plan today and the things the President is doing in the immediate, just because this has been a lengthy discussion here this morning, what are you saying to the guy out in Iowa who is about to go to the gas pumps and see extraordinary prices, and that's going to affect his budget? Should he be expecting what the President unrolled today to have an affect on holding the price where it is, ceasing its rise, or beginning its drop? ... Read more Comment (0), Email this.

MR. McCLELLAN: The President made a very public comment calling on the energy companies to meet their responsibility to help reduce gas prices. Remember, let's look at where things stood last year. Many Democrats voted against the comprehensive energy plan that this President advocated from very early on in his administration and was finally passed last year. That is a plan that will help expand conservation, help develop new technologies to look at alternative sources of energy, like the President has outlined in his Advanced Energy Initiative. It was Democrats, many Democrats, that have voted against efforts to expand domestic production capacity here at home and oppose efforts like opening up a small portion of ANWR to environmentally responsible exploration and production. So I think the record is very clear. We're focused on practical solutions and acting on all fronts. Some are focused on playing politics. Go ahead. Read more Comment (0), Email this.

MR. McCLELLAN: Well, I'll let other people who are more expert in this than me focus on this issue. But I think it -- Read more Comment (0), Email this.

MR. McCLELLAN: Keith, you have to understand the situation we're in and the fact that this is a supply and demand issue. Supplies are tight because of the demand for oil, because we are in a global market now, where you have countries like China and India that are growing and increasing their demand for oil. Now, there are some -- there are some parts that are temporarily affecting the increase in the price of oil, such as the switch in fuel mix that goes on now from MTBE to ethanol. And so I think it depends on a variety of factors. But what we ultimately have to do in the long run is get off our dependence on foreign sources of energy. Read more Comment (0), Email this.

MR. McCLELLAN: Well, all these steps will help address high gas prices in the short run. The benefit is that it will help consumers. But the ultimate solution to the problem that we are in today requires that we reduce our dependence on foreign sources of energy. Read more Comment (0), Email this.

MR. McCLELLAN: Well, that's why I think -- Terry or Jim asked that question earlier in the briefing. And you should go and look at -- the Department of Energy has a website that people can go to and report possible price gouging. And they talked about it in the aftermath of the hurricane how they found most people were acting responsibly, but there were some bad actors within that. And we're going to take action if we find it. Read more Comment (0), Email this.

MR. McCLELLAN: Well, it's not only -- Read more Comment (0), Email this.

MR. McCLELLAN: It's also the state attorneys general -- the state attorneys general that have primary authority over this. And when gas prices are spiking like this, you have a responsibility to make sure that people aren't illegally manipulating price or engaging in price gouging. And that's what we're going to do. We're going to continue to take all these steps to help address high gas prices and to make sure that American consumers are treated fairly. Read more Comment (0), Email this.

MR. McCLELLAN: No, when you have gas prices that are spiking, you need to make sure you're acting on all fronts to do your part at the federal level to reduce those gas prices. Now, there's only so much you can do in the short run. But that's why we're taking these steps. In the long run, we need to go to the root cause. Go ahead, Victoria. Read more Comment (0), Email this.

MR. McCLELLAN: The President strongly supports Secretary Rumsfeld and the job that he's doing. And we've talked about that repeatedly. And there are a number of generals who have come out and said very publicly -- former generals -- that he is someone who is a strong leader, and the type of leader we need during this critical period in our history where we remain engaged in a war, and we remain engaged in transforming our military to better meet the threats of the 21st century. In terms of what the Senate does, they have their responsibilities. And they have their steps that they can take. The President has made very clear what his view is. Read more Comment (0), Email this.

MR. McCLELLAN: I think the President has made his views very clear, Victoria. Go ahead, Les. Read more Comment (0), Email this.

Q Scott, a two-part. The President is the chief executive charged with enforcing the laws of the United States. And the law says an illegal entrant is to be deported. Yet yesterday he said mass deportation wouldn't work. And my question: By articulating that policy, isn't the President violating his executive duties? ... Read more Comment (0), Email this.

Q London's Daily Telegraph quotes Israeli Defense Minister Shaul Mofaz as saying, "Of all the threats we face, Iran is the biggest. Since Hitler, we have not faced such a threat." And my question: Does the Bush administration disagree with this statement and with a probable Israeli nuclear attack to prevent an Iranian nuclear bombing of Tel Aviv? ... Read more Comment (0), Email this.

MR. McCLELLAN: Yes, you can understand how -- Read more Comment (0), Email this.

MR. McCLELLAN: It's not the President, it's the international community. The international community is united in our desire to prevent the regime from developing a nuclear weapon. That's why we are working to address this issue through the Security Council and with other partners and friends in the international community. We spelled out very clearly, the international community did, what the regime needs to do. This is a regime that continues to defy the international community and move in the opposite direction. Go ahead, Sarah. Read more Comment (0), Email this.

Q Thank you. Scott, signaled in the recent polls, even though the President says he doesn't pay attention to them, all the politicians do. What does the President plan to do differently between now and November to get Republicans elected or reelected? ... Read more Comment (0), Email this.

MR. McCLELLAN: Well, we have a number of meetings that have been going on with members of Congress and that are continuing to go on. This morning, the President met with a bipartisan group of senators to talk about the latest developments in Iraq. And they heard form our Ambassador, Ambassador Khalilzad, and they heard from General Casey. This afternoon is on immigration reform. Tomorrow, he's going to have another meeting on Iraq with some House members. So this is part of the President's outreach. These are people who have been very involved in this issue, and people that I think are committed to finding a way forward to get comprehensive reform done and moving beyond the procedural tactics that have held this agreement from going forward. Go ahead. Read more Comment (0), Email this.

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

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

MR. McCLELLAN: The President had a good conversation with Prime Minister Harper. The President extended the condolences on behalf of the American people for the loss of the Canadian soldiers in Afghanistan. They talked about a range of other issues. One of the issues that was discussed was the softwood lumber issue. The President would like to see this resolved. I know that the Prime Minister would like to see it resolved. And both leaders reiterated their commitment to resolving the matter. We remain in discussions with Canadian officials about how to move forward and get this resolved. Read more Comment (0), Email this.

MR. McCLELLAN: Well, I think I'll leave it where I did for now. Hopefully we can continue to make progress and resolve this matter. Read more Comment (0), Email this.

MR. McCLELLAN: All right, good morning, everybody. Let me quickly go over the day, and then I've got one announcement on the schedule for you all. First of all, when we land, the President will be speaking on immigration reform, and he'll be talking about the importance of getting comprehensive immigration reform passed. He'll talk about the -- I expect he'll talk about the agreement that was reached in the Senate. It was a good, bipartisan agreement, yet it was blocked by some procedural gimmicks by the Senate Minority Leader, Harry Reid. I think also in the President's remarks he'll talk about the war on terrorism, and he'll talk about Iraq and the recent developments there, with the selection of the top seven leaders, and talk about this important milestone and how it really is an opportunity to begin a new chapter with the new Iraqi leaders as we move forward and continue to support them on their path to democracy. Then, following that, we go to Las Vegas, and he'll make remarks at the reelection fundraiser for Congressman Porter, and then we're back in D.C. this evening. Now one announcement on the schedule. The President will welcome Uruguayan President V zquez to the White House on May 4th. The meeting will provide the two leaders with an opportunity to share views on topics of mutual interest. The President looks forward to discussing with President V zquez a full range of bilateral and international issues, including Uruguay's important contributions to global peacekeeping efforts, especially in Haiti, and our shared goals of free trade and the rule of law in the hemisphere. And we'll put that statement out shortly, when we land. That's all I've got to begin with. Read more Comment (0), Email this.

MR. McCLELLAN: Well, these -- it's not formal remarks. He'll be kind of hitting some key points, but I expect he'll touch on some of what he did over the last couple of days, and talk about the new chapter that this begins on Iraq's path to democracy. Read more Comment (0), Email this.

MR. McCLELLAN: Well, one of the things that he will continue to emphasize, the importance of getting a comprehensive piece of legislation passed. There was a good, bipartisan agreement reached. He wants to see the Senate press forward and get a comprehensive bill passed. Unfortunately, you had the democratic leader in the Senate using procedural gimmicks to block it from moving forward. And that's what the President will talk about -- what we've done to strengthen our borders, and the additional steps we want to take to build upon that, and then also the importance of a temporary guest worker program to fixing the immigration system. Read more Comment (0), Email this.

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

MR. McCLELLAN: Well, we're all committed to taking additional steps to strengthen our border. And the Senate is coming back, and they're taking up the emergency spending legislation. We want to see them move forward on that in a way that meets important priorities, and that is done so in a fiscally responsible way. We want to make sure that our troops have the resources they need, and that's why it's important to act quickly on the spending legislation. We want to make sure that we continue to support the people along the Gulf Coast as they're rebuilding their communities. But in terms of border security, we all have a shared commitment to making sure that our borders are secure. And part of making sure our borders are secure is having a temporary guest worker program, because that will relieve pressure off the borders. And the President, I expect, will talk about that again in his remarks today. Read more Comment (0), Email this.

MR. McCLELLAN: I don't think it's the President; I think it's a lot of people. I mean, I've seen editorials across the U.S. point to the fact that he used procedural gimmicks to stop debate from moving forward. It's important for all voices to be heard in a debate that is this emotional. And the President -- I think the President will again talk about the importance of conducting this debate in a civil way. This is a difficult issue, it's a complex issue, and the fact of the matter is that the senators came together, senators of both parties had a promising solution to move forward on comprehensive reform. And one person stood in the way of that moving forward. Read more Comment (0), Email this.

MR. McCLELLAN: Republicans and Democrats have come together. No, it's Senator Reid's procedural gimmicks that stopped it from moving forward before the recess. There was a real opportunity to get it passed before the recess, and Senator Reid stood in the way of that. Read more Comment (0), Email this.

Q You called this a good, bipartisan agreement, but it does create a new path to citizenship for those who have been here for five years or longer, and a new path for those who have been here two years or longer. That seems to violate the President's principles. ... Read more Comment (0), Email this.

MR. McCLELLAN: We actually put out a statement of administration policy when the bill was out. And we reiterated what the President has previously said, that there should be no automatic path to citizenship, that people who want to apply for citizenship would have to get in line just like everybody else, and they would have to get at the back of the line, not at the front of the line. And that remains the President's view. Anything else? Read more Comment (0), Email this.

MR. McCLELLAN: I didn't talk to him about it, so I don't -- like I said, it's not formal remarks. It's not something that's necessarily part of his remarks. But he's going to talk about the broader war on terrorism, talk specifically, I think, about Iraq as part of that. Read more Comment (0), Email this.

MR. McCLELLAN: I know there's a lot of interest in tomorrow's speech, and I wanted to come back here and do kind of a general preview of it for you all for tomorrow, which I think will be helpful for everybody. Tomorrow the President will focus his remarks on what we're doing to address high gas prices in the short-run, as well as what we're doing to eliminate the cause of high gas prices in the long-run. We have a strong economy, but high gas prices are like, as you have heard the President say, like an additional tax on families that are trying to live within a budget, farmers and small businesses. It puts a strain on working families and small businesses. And the President will talk about why gas prices -- touch on why gas prices are high. He will talk about how global demand for energy is really rising faster than the global supply, because of countries like China and India, and he'll talk about how gasoline demand is only projected to increase this summer, and experts are projecting that gas prices will remain high through the summer. And he'll talk about how we're switching from one fuel mix to another, transitioning from MTBE to ethanol in specialized fuel blends, and how that is temporarily pushing gas prices up even more, as well. So tomorrow the President is going the lay out a four-point plan that he has for addressing high gas prices. Let me mention the four areas that he'll cover. First, making sure that consumers and tax payers are treated fairly -- and I'm going to talk a little bit more about that one aspect in a minute -- promoting greater fuel efficiency is the second area, boosting our gasoline supply at home is a third area, and then for the long-term investing aggressively in alternatives to gasoline, so that we can eliminate the root cause of high energy prices. And that's where he'll really focus on the Advanced Energy Initiative, and how we're working to transform the way we power our cars and trucks. But anyway, jumping back to the first part of his plan. The first part is to make sure that American consumers are treated fairly at the gas pump. And the President will talk about how, at his direction, the Federal Trade Commission is investigating whether the price of gasoline has been unfairly manipulated in any way since the hurricanes struck last year. Read more Comment (0), Email this.

MR. McCLELLAN: Yes, at his direction, the Federal Trade Commission. Read more Comment (0), Email this.

MR. McCLELLAN: Yes, at his direction, the Federal Trade Commission is investigating. Read more Comment (0), Email this.

MR. McCLELLAN: Whether the price of gasoline has been unfairly manipulated. And also he's directed Department of Energy and Department of Justice to conduct inquiries into possible cheating or illegal manipulation in the gasoline markets. I think you all heard the President say very clearly that we will not tolerate price gouging. And so these are two important directives that the President has made. Read more Comment (0), Email this.

MR. McCLELLAN: To conduct inquiries into possible cheating or illegal manipulation in the gasoline markets. Read more Comment (0), Email this.

MR. McCLELLAN: This is what we're directing these agencies to do. Read more Comment (0), Email this.

MR. McCLELLAN: Well, they are aware that he's directed them to do this, so they are taking -- they are in the process of taking these steps. And also tomorrow the Attorney General and the FTC will be sending a letter out to all 50 states -- to all 50 state Attorney Generals, because the state Attorney Generals have primary authority over price gouging issues. On that letter I think they'll remind them to stay on top of this, and they'll also talk about how the federal government is here to assist in those efforts. And then one other area in this first part of his plan that he'll talk about is that energy companies -- he'll essentially call on energy companies to reinvest their profits into expanding refining capacity, developing new technologies, and researching alternative energy sources. That's an important responsibility, and that's something he will touch on in the remarks, as well. That's the part I wanted to preview. There are some additional steps that he's going to be talking about in the remarks tomorrow that we're taking in the short-run, and he'll spell those out, but I wanted to touch on that first part of the plan, and some of what he's talking about there, as a preview for tomorrow. Read more Comment (0), Email this.

MR. McCLELLAN: It's recently. He's already -- I'll check the specific -- if there's a more specific time. But you heard him talk about price gouging recently. So he'll talk about how, at his direction, these agencies are taking these steps. Read more Comment (0), Email this.

MR. McCLELLAN: No, this is recently, just recently. Read more Comment (0), Email this.

MR. McCLELLAN: I just told you, I'll try to give you a more specific time. I'll come back here and be glad to share that with you. Read more Comment (0), Email this.

MR. McCLELLAN: Well, if you'll recall, last week, and even before, we talked about how -- in the long-run, to address rising gas prices, you have to really address the root causes. And that's why the President outlined a very bold initiative in the State of the Union to get us off our dependence on foreign crude, or foreign oil. He's talked about how we are addicted to oil. And so that's what you have to do in the long-run, is eliminate that cause of high gas prices. In the short-run, there are steps we can take to help address the problem. And that's -- it's not only the steps I've mentioned just now, those are some steps. But he's going to talk about some other steps that we're taking as well to help address it in the short-run. This is not something we got into overnight, it's not something we're going to get out of overnight. But there are some steps we can take. Read more Comment (0), Email this.

MR. McCLELLAN: It will help some in the short-run. But, again, the reason why we are in this position is because of our dependence on foreign oil and our addiction to oil, as the President has talked about. So it requires a long-term solution. Read more Comment (0), Email this.

MR. McCLELLAN: We don't want you to be confused. Read more Comment (0), Email this.

Q Yes, I know. The President has repeatedly said that the cause for high gas prices is high global demand for oil. So what makes him suspect that there's been any price manipulation when he already thinks that global forces are pushing up the price of oil? ... Read more Comment (0), Email this.

MR. McCLELLAN: Well, gas prices are high right now, and that's why you want to make sure there's not. And so that's what he's going to be talking about in that context. Read more Comment (0), Email this.

MR. McCLELLAN: Well, when I say, "recently," he's just now directing them to take these steps. That's why the letter is going out from the Attorney General and the FTC. He talked about this last week a number of times. And so that's the context in which you should look at it. But we've been in close contact with Speaker Hastert and Leader Frist about these issues. We are all on the same page when it comes to making sure that there is no price gouging. And the President has said very clearly that this is something we will not tolerate, particularly when gas prices are high. Read more Comment (0), Email this.

Q The President has a number of personal contacts, and the Vice President has personal contacts in the oil industry. Has there been any conversation between either of them with oil executives to try and get them to either give assurances about market manipulation, or try and bring down the price? ... Read more Comment (0), Email this.

MR. McCLELLAN: Sure. They'll be in the transcript we'll have. They are promoting greater fuel efficiency and boosting our fuel supply. Read more Comment (0), Email this.

MR. McCLELLAN: This is the part I'm previewing in the speech today. The speech is being finalized, and there will be more tomorrow. I didn't preview everything. Okay, thank you. * * * * * MR. McCLELLAN: Okay, quick update. On the FTC investigating possible price gouging, that was -- the President did direct the FTC to do that in the aftermath of the hurricanes last fall. And then on the Department of Energy and Department of Justice conducting inquiries into possible cheating or illegal manipulation of gasoline markets, that's really happened in the last few days. The President will be publicly announcing it tomorrow. Read more Comment (0), Email this.

MR. McCLELLAN: We had directed the FTC to do it in the aftermath of the hurricanes. Read more Comment (0), Email this.

MR. McCLELLAN: We talked about it. The hurricanes were last September. Read more Comment (0), Email this.

MR. McCLELLAN: Well, the FTC could probably give you an update, in terms of -- I think the Department of Energy even put out some information last week, where they did some initial checks, and there were reports -- there are ways for consumers to report possible incidents of price gouging. They have a website and they have a toll-free number that they can call into. I think to a large extent people were acting appropriately, but they did find some instances where there problems. And the Department of Energy or FTC can probably get you more on that. Read more Comment (0), Email this.

MR. McCLELLAN: I'd say the last few days. This is something we've been talking about with congressional leaders about doing, as well, and as you saw in the letter from Speaker Hastert and Leader Frist. Read more Comment (0), Email this.

MR. McCLELLAN: Good afternoon to everybody. Hope you all enjoyed the church service. The President this morning, following his bike ride, when he was back at the hotel, placed calls to the President, the Speaker and the Prime Minister-designate in Iraq. So the President first spoke with President Talabani, then he spoke with Speaker Mashhadani, and then Prime Minister-designate Maliki. And he also briefly spoke with Ambassador Khalilzad in between the Speaker and Prime Minister-designate. The President called to congratulate them and thank them for their leadership and courage. The President let them know that we will continue to stand with them and support the Iraqi people as they move forward on building a democratic future. In the call to the Prime Minister-designate, the President thanked Prime Minister-designate Maliki for his strong public statements. As you all know, the Prime Minister-designate has talked about the importance of getting good, capable ministers in place for the Cabinet. He's also talked about the importance of ending the militias. And the President encouraged the Prime Minister-designate to press ahead and get a strong cabinet of ministers in place quickly. All the leaders expressed their appreciation to the President and the United States for all that we have done to support them as they move forward. Then of course we had the church service. These calls took place between about 9:25 a.m. and 9:55 a.m. this morning, our time. And we had the church service, now here we are at lunch at the Marine Corps Air Ground Combat Center. Read more Comment (0), Email this.

MR. McCLELLAN: Yes. The President I think was informed about the most recent audio tape this morning. It was probably around 6:30 a.m., somewhere in that time frame. I just heard from the intelligence community that they believe it is authentic. Read more Comment (0), Email this.

MR. McCLELLAN: Well, yes, he's been informed. Read more Comment (0), Email this.

MR. McCLELLAN: Yes, I was about to -- I assumed you wanted a reaction to it. The al Qaeda leadership is on the run and under a lot of pressure. We are continuing to take the fight to the enemy abroad, and making it difficult for them to plan and plot against America. We are on the advance, they are on the run, and we will not let up. We must continue to take all terrorist threats seriously. That is why we are acting on all fronts and doing everything within our power to prevail in the war on terrorism. We will prevail. It's important that we continue to use every tool at our disposal as we take the fight to the enemy. Read more Comment (0), Email this.

MR. McCLELLAN: Rest of the afternoon -- he's at lunch right now, and I'll keep you posted if there are any other updates on the schedule. We'll return back to the hotel. Read more Comment (0), Email this.

MR. McCLELLAN: If they are OTRs, they are OTRs, and I wouldn't tell you about them until it's time. Read more Comment (0), Email this.

MR. McCLELLAN: Well, he's still going over it, but he'll talk about the importance of continuing to move ahead and pass comprehensive immigration reform. We need to make sure that we're continuing to take steps to strengthen our borders. And we also need to move ahead on a guest worker program. That will help relieve pressure on the borders, and allow law enforcement to focus on those who are coming here for the wrong reasons -- the criminals and terrorists and traffickers and smugglers. But the President will talk about the importance of getting a comprehensive piece of legislation passed. Read more Comment (0), Email this.

MR. McCLELLAN: He's going to be working on his remarks this afternoon a little bit, and so I'll keep you posted if there's anything more to add. But as you all know, the Senate leaders have said they remain committed to getting a comprehensive piece of legislation passed. They came together in a bipartisan way and had a good agreement. Unfortunately, the Democratic leader blocked that agreement from moving forward. The President -- this is a top priority, and the President wants to see the Congress press ahead and get something done, in a comprehensive way. Read more Comment (0), Email this.

MR. McCLELLAN: All right, good morning, everybody, or good afternoon. It's morning, I guess, in California -- the radio address the President taped before we left. It will be on important priorities that Congress needs to act on when they get back, and important priorities for the people of California, as well, such as the Competitiveness Initiative, the Advanced Energy Initiative, and supporting our troops with the supplemental funding and immigration reform. Then he had his usual briefing. He met with the Secretary of State this morning. When we get there -- the Governor will meet us when we get there, and I expect he'll ride with the President to the event, and then he's going to be participating on the panel on competitiveness, as well, as will John Chambers, the head of Cisco Systems, who is on board with us -- he and his wife are. Then following that, the President will go to Stanford, and he'll be meeting with some of the Hoover Institution fellows. Secretary Shultz will be there, and help moderate a discussion he'll have with some of the fellows. That's a closed event. And then he has a private dinner this evening with some Hoover Institution officials. And I think that's all I've got on his schedule, besides a couple of announcements and updates. The President called Prime Minister-elect Prodi on the plane. This was about 11:05 a.m. -- I mean, 11:50 a.m. Central time [sic]. The President called -- Read more Comment (0), Email this.

MR. McCLELLAN: Around 11:50 a.m. Eastern time. The President called to congratulate the Prime Minister-elect. The President said he looks forward to working with him, and looked forward to seeing him again soon. And the Prime Minister-elect expressed his appreciation for the call. Italy is a valued ally and good partner. The President looks forward to working with Prime Minister-elect Prodi on a number of common priorities that we have. One other announcement -- we'll be putting out a statement on this. Prime Minister Rasmussen will be coming to Camp David on Friday, June 9th. Denmark is a close ally in the war on terror and a valued partner in advancing freedom around the world. The President looks forward to welcoming Prime Minister Rasmussen to Camp David. We'll get that statement out to you all here shortly. And I think that's all I've got to really begin with. I've got a week ahead at the end. Read more Comment (0), Email this.

MR. McCLELLAN: Well, I think they'll be riding to the event together, so they'll have an opportunity to visit about important priorities. Read more Comment (0), Email this.

MR. McCLELLAN: Actually, our Chairman on the Council of Environmental Quality just did a call with California reporters -- Read more Comment (0), Email this.

MR. McCLELLAN: Yes, just a short time ago, just completed a call. The Army Corps of Engineers has been working with California to move ahead on levee repairs. This is to repair some levees in the Sacramento area. And Chairman Connaughton of our Council of Environmental Quality announced that we had reached an agreement with California and are moving ahead to repair those levees in a quick and practical way. There are 29 locations all together, and this will be done over the course of the summer and into the fall. The President directed his team to -- his Cabinet team and Chairman of the Council on Environmental Quality to make sure that the repairs happen as quickly as possible. Read more Comment (0), Email this.

MR. McCLELLAN: Hoover Institution officials. Read more Comment (0), Email this.

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

MR. DECKARD: No. We'll get you the information. MR. McCLELLAN: I'll get you that information.* Read more Comment (0), Email this.

MR. McCLELLAN: I think it's just -- the fellows? He's in the area, and it's an opportunity to talk to them about issues that are on their minds, as well as some of the priorities that we're pursuing. Read more Comment (0), Email this.

MR. McCLELLAN: I hadn't heard that one. I think Secretary Shultz is happy where he is right now. He's a good friend, and the President looks forward to seeing him. Read more Comment (0), Email this.

MR. McCLELLAN: The President is concerned about high prices at the pump. And I think you heard him talk about it earlier this week. He's concerned about the impact it's having on small businesses, the impact it's having on families who are trying to make ends meet. I think that the increase in gas prices in recent weeks is all the more reason why Congress should move ahead and act on the initiative he outlined in his State of the Union, and that this should create a sense of urgency for Congress to move ahead and pass these initiatives that will really help us change the way we power our cars and power our homes and businesses. And the President will be talking about that in remarks tomorrow, and highlighting that -- the initiative that he outlined. He will be urging Congress to move ahead. Read more Comment (0), Email this.

MR. McCLELLAN: We're always looking at any short-term ways we can address these issues. Remember, this is not something that we got into overnight. This has been occurring for years and building for years. What we have to do is reduce our dependence on foreign sources of energy, particularly foreign crude. And that's why the President outlined a really bold initiative that will transform the way we power our cars and homes and businesses, by investing in new technologies. And that's one of the things he's going to be talking about on this trip. It's a high priority for the President. We passed a comprehensive energy plan last year, but there's more that we need to do. And there should be a sense of urgency within Congress to move ahead and get this done, so that we don't continue to run into this situation year after year after year. If you're going to address rising energy prices, you have to go to the root causes of why those energy prices are rising, and it's because we're dependent on foreign oil. Read more Comment (0), Email this.

MR. McCLELLAN: But we're always looking at ways we might help in the short-term, even though this is something that requires a comprehensive solution. Read more Comment (0), Email this.

MR. McCLELLAN: Well, he's going to be talking more about energy and high energy prices tomorrow in his remarks. Read more Comment (0), Email this.

MR. McCLELLAN: Well, I think, one, that's not the only thing he's going to be talking about tomorrow. I think he'll be talking about his broader initiative. And what we have to do is go to the root causes of high energy prices. Again, this is something that puts a strain on family budgets, puts a strain on small businesses. And it's not something that occurred overnight, and it's not something that's going to be solved overnight. There are some short-term steps we've taken. One of the things the President emphasized the other day, too, was that we have a responsibility to make sure that we are acting to stop any price gouging, and we'll stay on top of that, as well. I think the Department of Energy put out some additional information on that the other day. We will always look for ways we can -- might be able to help in the short-term. We have a strong economy, but rising energy prices, rising health care costs are concerns that the President wants to see Congress act on. That's something that the American people are concerned about, those two issues, and that's why Congress needs to act on these initiatives. Read more Comment (0), Email this.

MR. McCLELLAN: But he's trying to focus on a bipartisan way we can solve these issues, and I think there's a lot of bipartisan support for the Advanced Energy Initiative. This is something that has good support among leaders of both parties of Congress, and I think that the recent increase at the pump is all the more reason why Congress ought to be moving ahead quickly when they get back. Read more Comment (0), Email this.

MR. McCLELLAN: Well, I think you need to look at what people are doing. Consumer confidence is at very high levels, and that's what's important to look at when you talk about the economy. You have more than 5.1 million jobs that have been created, an unemployment rate that is down to 4.7 percent. One of the other areas he's talking about is the Competitiveness Initiative. We need to act to keep America the most competitive economy in the world. This is a strong and growing economy, but there are still priorities that need to be addressed that the American people are concerned about. Read more Comment (0), Email this.

MR. McCLELLAN: Are you talking about this story in The New York Times today? First of all, I think Harriet Miers is a valued and trusted advisor. Secondly, Josh Bolten told the senior staff that the story is not accurate. Josh is not considering any such action, and more importantly, it's not something that is under consideration by the President. Read more Comment (0), Email this.

MR. McCLELLAN: First on Prime Minister-elect Prodi. I think just in the last couple of days the election has been certified by the courts in Italy. And so before that it was under dispute. And the President wanted to call him as soon as the issue was resolved. On Iraq, the parliament is supposed to meet again tomorrow. And we continue to urge the Iraqi leaders to come together and get a unity government in place as quickly as possible. We hope to see some good progress in the coming days. I think you have seen that Iraqi leaders have been continuing to have discussions about how to move forward and get a government formed and in place. And so we will be watching in the coming days to see how the parliament moves ahead. My understanding is that they're supposed to be acting on the top seven leadership posts as they come back to meet again. Read more Comment (0), Email this.

Q The first quarter fundraising numbers are in for the congressional campaign candidates' committees. And the Democratic Committee's Senatorial Committee and Congressional Committee are doing very well versus the Republican committees. Is there any concern on that for you guys? ... Read more Comment (0), Email this.

MR. McCLELLAN: Absolutely, absolutely. She's been doing a great job. She's an important member of this team. Read more Comment (0), Email this.

MR. McCLELLAN: I think I just talked about the specific report, and now you're trying to speculate about all sorts of things. Read more Comment (0), Email this.

MR. McCLELLAN: I think I was pretty clear in what I said. Read more Comment (0), Email this.

MR. McCLELLAN: There's nothing to update you on. We'll keep you posted. Read more Comment (0), Email this.

MR. McCLELLAN: Yes, he is, in about 45 minutes. Good question. Read more Comment (0), Email this.

MR. McCLELLAN: They've worked out a time to talk here shortly.** Read more Comment (0), Email this.

MR. McCLELLAN: I'll let him say it, then I'll tell you. Read more Comment (0), Email this.

MR. McCLELLAN: Yes, I absolutely will. That's why I told you. All right, week ahead. I'll skip through -- there's nothing new on here for Saturday and Sunday, right, and Monday? I'll skip through that, because you already have that. On Tuesday, the President will be making remarks on energy -- Read more Comment (0), Email this.

MR. McCLELLAN: Didn't we put that on there? Oh, okay, in Irvine, California. He will be making remarks on his immigration reform proposal. Read more Comment (0), Email this.

MR. JONES: Good afternoon, everyone. I'd like to welcome you to this briefing. It will be on the record with two people from the National Security Council. We have Deputy National Security Advisor for International Economic Affairs, Mr. Faryar Shirzad; as well as Acting Director for Asian Affairs of the National Security Council, Mr. Dennis Wilder. They're here to talk about today's meetings and events. Read more Comment (0), Email this.

MR. JONES: Oh, pardon me. Acting Senior Director for Asian Affairs at the National Security Council. And they'll be talking about today's events and meetings. MR. WILDER: Apparently, I've been demoted here. MR. JONES: I'm sorry. MR. WILDER: That's all right. (Laughter.) President Bush and President Hu spent a lot of time together today, working through the many bilateral and international issues that you are well familiar with, but we will go into some detail on. It was a very good meeting, set of meetings in the sense that these are very substantive discussions they're having now. As we told you on Monday, these two men have met five times in the last year, they've communicated by letter and phone to each other, they know each other quite well by now, they've very familiar with each other's styles. And so this is not a meeting where they needed to take a lot of time to figure out where they were going. They knew what they needed to cover and they did it very well. I'll note one thing, that they had a long session in the Oval Office, a shorter session in the Cabinet Room, and at the end of the Cabinet Room session they realized that they were a little late for lunch with their wives, and they decided to do something unusual, which is to sit together at the table at lunch. And so during lunch they continued their substantive discussions. White House protocol is normally that the Presidents sit at separate tables, but they decided that, because of the shortness of time of President Hu's schedule here in Washington and the need to continue to cover some of the very pressing international and economic issues that we have with the Chinese, that it would be a fruitful use of their time to continue discussions over lunch. Let me talk a little bit about what we see as the key accomplishments of today. I think it's important to remember that today is only part of a package of meetings that we have been holding with the Chinese in the run-up to this summit. In other words, the JCCT, which we talked about with you on Monday, was very much a part of today's meeting because, if you look at the statements that were made both on the South Lawn and then in the press availability, the two leaders really talked in some detail about how are we going to work on the trade imbalances, how are we going to make this a fair playing field for Americans who want to do business in China, and Chinese wanting to do business in the United States. And I think one of the most important things we saw, which is part of China's new five-year economic plan, is that -- well, the new five-year program, but a five-point plan in that five-year program is a decision to begin to move from the export-led economy that has served them so well over the last quarter-century, to a consumer-driven economy. And we've had quite detailed discussions in the run-up to this meeting with the Chinese about what that means. When Senators Graham and Senator Schumer and Senator Coburn went to Beijing, the Bank Governor of China, Zhou Xiaochuan, presented to them a five-point plan of how China's going to move forward on a consumer-driven economy. And what they're talking about is lowering the savings rate. Today, as you may know, Chinese save perhaps at some of the highest levels in the world; 53 percent of their income, on average, is saved. And this is precautionary savings. It's savings against old age, where you don't have a retirement plan; or illness, because you don't have a health system that is as developed as some other countries. And what the Chinese are now talking about is how do we lower that? How do we start to make the Chinese people begin to spend on their own domestic economy in a way that is going to boost consumption and change this to a continental economy that stands on its own. In other words, another engine of real growth in the world economy. Much like the United States as a continental economy is an engine of growth, China begins to become much more of an engine of growth by the use of this five-point program to move Chinese away from all of the savings to more spending. And, of course, that spending is good for the Chinese people, because it will increase their standard of living over time. I'll let Faryar, in a couple minutes, make a few more points about this. But it is very important, because I think some people today want to see a quick fix to the trade imbalance. And if there was one, believe us, we would have tried to get that by now with the Chinese. But in the new global economy, there is no quick fix. That's not the way this is going to work. What we need, therefore, is structural change. And the Chinese are talking about, in two to three years, coming back into equilibrium as far as their global trade balance -- not the trade balance for the United States, necessarily, because that's going to take longer, but their global trade balance, as you know, has become a little bit out of sync, in the sense that they have over $100 billion in trade surplus with the world last year. And we need to see the Chinese start to change this so that, again, they become more of an engine, there is more consumption in China, more opportunities for foreigners to do business in China and to sell into the Chinese market. And the Chinese are recognizing that, and they're recognizing that this is an important role they play -- to use a phrase we've used a lot and you saw a lot today -- as a stakeholder in the international economic system, that they understand that the imbalances have got to be addressed. And we have done a lot of work with them to figure out how this will be done. We'll set benchmarks. We know what it's going to take for the Chinese to do this. Faryar, again, as an economist, can tell you a little bit more about those in a couple of minutes. So, I would ask you to look beyond sort of saying, well, why didn't you get a big currency move today? The answer is, on that subject, that China's currency is beginning to move. It's important that it's started to move. The Chinese are beginning to use their new system for having a flexible currency. It's not enough, it's not nearly enough. We're disappointed with how slowly they've moved to use it, but over time we believe that they have the ability to use it more. And one of the points I would make is, the Chinese, when we first talked about this last year, said, if we do this, we're worried it will slow growth. Well, the currency has moved over 3 percent in the last year; growth in the 1st quarter was 10.2 percent for the Chinese economy. I think it's hard to make a case that moving to this new flexible exchange rate has caused them some sort of dip in growth rates. In fact, growth is still extremely strong in the Chinese economy. Let me move on to the key issues in bilateral and international relations that were discussed today. As the President said, the subjects of Iran and Darfur -- the Sudan -- and North Korea were key issues on today's agenda. On Iran, obviously we feel and the President told President Hu that China plays a key role in the Iranian situation. China has a relationship with Iran that we believe it can use to convince the Iranians that they must make the right decisions, that they must give up these nuclear ambitions they have and must come back into compliance with their obligations. The President made a point of this, and said that we expected more help. The Chinese President explained what his diplomat, Cui Tiankai had been doing in Tehran this last week, explained that they, too, had exactly the same long-term goal, strategic goal, which is to get the Iranians back into compliance, and that they hoped that we could find a way forward that would work for everyone; that they, of course, are very keen on a diplomatic solution in this situation. And we said we wanted to work closely with them to find that diplomatic solution. On the subject of North Korea, the President, obviously, very concerned about the fact that the North Koreans have not come back to the table for another round of talks since the 19 September agreement. We asked the Chinese to continue to work on the North Koreans, to have the North Koreans come to that strategic decision that they really need to make, that they need to give up their nuclear ambitions, they need to open up in the way that China has opened itself up since the 1970s. And again, President Hu said he shared the same goals that the President shares on North Korea, that they want a de-nuclearized peninsula, that they are disappointed that the talks have not resumed at this point, and that they are doing their utmost to try and get the North back to the table. The President also raised the issue of a North Korean woman who was sent back by the Chinese. And you know that we put out a statement on this subject a couple of weeks ago. He said that he felt that China needed to think about its obligations to these people, and its obligations under the U.N. charters that it has signed on to and adheres to, and that the plight of the North Korean people is extremely important. And we hope China can play a more positive role on dealing with North Koreans who are trying to find freedom. On the subject of Sudan, the President made an equally impassioned plea on the subject of the violence unleashed by terrorists and extremists, and asked China to consider doing more to get the Sudanese government to come into compliance. Again, the Chinese leader agreed with the long-term goals, but was not in accord with everything we're trying to do in the short-term. But we are continuing those negotiations in New York at the United Nations. And we hope that we'll be able to see our way to a common understanding on the Sudanese situation. Let me just mention a couple of other subjects very quickly. The President, in the area of trying to deepen the relationship between our two societies and our two cultures, offered to send the NASA Administrator to China to begin to talk about lunar exploration with the Chinese, to talk about some of the things we need to do in space -- for example, debris avoidance and other subjects. There are some things that the Chinese also have in terms of sensor technologies and information that we are interested in, in terms of global climate and other issues. So the NASA Administrator will probably go to China later on this year to begin to consult on the subject of space exploration and where we might have common interests and where we might begin to work together as the two nations on the Earth with the most ambitious space programs in the 21st century at this point. Faryar, do you want to add anything? Read more Comment (0), Email this.