MS. PERINO: Good morning. One quick statement. This morning the Commerce Department gave its first estimate on first quarter GDP. They estimate that the economy grew by 0.6 percent in the first quarter. This represents a small but positive growth in the United States economy, and it is about what you have heard us say we were expecting in this quarter.

Although it is good that the U.S. economy did not contract, by no means is this a rate of growth that we're pleased with. The President wants to see the economy perform to its potential, as we have seen it do for many years now, and return us to high incomes and job growth. We expected that the first quarter of this year, which shows slow growth, and that's why we worked with Congress a bipartisan basis to put the economic stimulus package in place.

The business side of the stimulus package has been in place and the stimulus paycheck -- I'm sorry, payments to taxpayers have started to go out this week. We agree with private forecasters who expect that the stimulus will give a boost to the economy in the second half of the year, increase economic growth and increase job creation by half a million jobs.

In the meantime, we continue to call on Congress to take action on legislation that will help the economy: passing long overdue housing legislation, student loan legislation, passing the Colombia free trade agreement and making the tax cuts permanent. One thing we should not be doing during this time is to increase taxes, so we intend to continue to prevent Congress from trying to increase your taxes. Read more Comment (0), Email this.

MS. PERINO: We recognize that there are higher prices that people are paying at the pump and also at the grocery store or at restaurants around the country, but we still continue to believe that the impact of the stimulus package that we anticipated last January will continue to have that desired effect. Read more Comment (0), Email this.

MS. PERINO: Well, one of the things that the President wants is for Congress to take action on things like I just mentioned: the housing legislation, the student loan legislation, Colombia free trade agreement and making tax cuts permanent. Those are all things that we can do to continue to help taxpayers. If you're asking me if the President would consider yet another stimulus package, his position is, let's see how this first one works first.

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

MS. PERINO: I listen to our economic experts, and that's what they have said. And I point you to Eddie Lazear, the President's Chief Economic Advisor, amongst others, like Secretary Paulson and Keith Hennessey, the Director of the National Economic Council. They talk to a lot of people, as well; we are not in a vacuum here, we are out talking to economic experts and we believe that that's what we'll be able to find.

The economy -- our economy in the United States has proven to be very resilient over time. We've had a lot of shocks to the system that we've dealt with over the past several years, but because of the innovation of the American worker and the entrepreneurship of this country and the hard work that Americans across the country put in, that's why we're able to withstand some of these shocks.

But make no mistake, while this was slow growth, the President doesn't believe it's anything to crow about. It's something that we need to be aware of and we need to continue to push because we need -- we want Americans to have higher wages, we want them to have more opportunities out there in the form of new jobs, which is one of the things that we think the stimulus package will help create. And we'll continue to work on ways that we can lower gas prices.

But we want to make sure it's very clear to people that, with the market that we have -- it's taken decades to get us into -- without a long-term economic policy that changes fundamentally the way that we explore and produce energy in our own country, we are going to continue to be dependent on foreign sources of energy. And that's why the President has tried to push Congress to make changes. Read more Comment (0), Email this.

Q Dana, a second U.S. aircraft carrier, as you know, has gone into the Persian Gulf. And some media

MS. PERINO: No, and I would point you to what Secretary Gates said yesterday, that we are currently undertaking regularly scheduled military exercises in the Gulf and these exercises are not aimed at Iran. They reinforce that the U.S. has an enduring commitment to the region and to our allies and we continue to protect our allies and interests wherever necessary. But Secretary Gates said he doesn't anticipate that they would be there very long, in terms of an overlap. Read more Comment (0), Email this.

MS. PERINO: I have not heard that anyone is, but I -- you can find out from the Pentagon what they may or may not be planning for a variety of scenarios. I think they're the people to put that question to. But as far as the vessels go in the Gulf, the answer is that they were regularly scheduled military exercises. Read more Comment (0), Email this.

MS. PERINO: The President is mostly concerned not with what you call the economic slowdown that we're in, but with what you do about it. And that's why he's calling on Congress to act. The President has been very transparent, he's been very measured, he's been very honest about what we are seeing in the economy. And I think that we will continue to work on what we can do, not what you call it.

Roger. Read more Comment (0), Email this.

MS. PERINO: It may have, I don't know. I'll have to ask Eddie Lazear. I know that that was the number; obviously, last August, we started recognizing that there would be a problem in the housing markets, and then we had the problem with the credit markets. And we've taken some action. We knew that we would have a slower growth in the first half of 2008. We believe that would that turn around in the last half. But as for that specific analysis and forecasts from CEA, let me go back and check.*

Go ahead, Olivier. Read more Comment (0), Email this.

Q Dana, this morning the White House expressed some concern about Russia's comments and actions related

MS. PERINO: I did go ahead and check; I'm sorry that I didn't have it earlier. But yes, the President has been briefed. The United States is concerned about the situation. We respect Georgia's territorial integrity, and we would urge everyone to maintain a level of dialogue, rather than take any further action. But right now the situation is changing so much it would be imprudent for me to comment further. Read more Comment (0), Email this.

MS. PERINO: Still where I was before, which is the President has said he's going to the Olympics. We haven't announced any final schedules.

Martha. Read more Comment (0), Email this.

MS. PERINO: Sure. Read more Comment (0), Email this.

MS. PERINO: We always are considering -- we have a team of people who not only brief the President every day, but they're scanning every possible data that they could get, all the information that they need -- we have a visitor. (Laughter.)

Let me back up -- I'm not expecting -- (laughter.) Who was that? Read more Comment (0), Email this.

MS. PERINO: Okay. Your question was about whether or not we're considering something else. The President is getting briefed on a regular basis, sometimes multiple times a day. His advisors and his economists are scanning all of the data and working with Congress to see if there's something additional that we need to do.

We believe that, from the administration's standpoint, that on some of the rulemaking changes that we've done, we've done a lot of what we can do, but we need Congress to do more. And so before we talk about a second stimulus package, we would ask Congress to finally take up legislation on several of the pieces that we've asked them to: on housing and on student loans, in particular; and in addition they should take up the Colombia free trade agreement. Read more Comment (0), Email this.

MS. PERINO: The President -- well, I think that he doesn't have to stay up late to take a look at it, but we'll listen to their ideas and see what they have to say. The one thing that the President doesn't want to do is take any action that would exacerbate problems.

And one of the things that I was asked about this morning was whether or not we would support a windfall profits tax. And this was tried in the Carter administration and it was an abject failure. It decreased energy production. It increased imports, which is exactly what Congress says that they don't want to do, which is to have us more reliant on foreign sources of energy.

So we'll take a look at these ideas, but we want to make sure that we are addressing the root causes of the problem, as well as making sure that people understand that short-term fixes are not available. Read more Comment (0), Email this.

MS. PERINO: Well, I'm not going to comment on a -- on the resignation. I will confirm, obviously, that she has resigned from GSA. While serving as the administrator she worked very hard to respond effectively during the times of emergency. She also worked to make sure that all of the numerous buildings in the federal government are as energy efficient as possible. And the President is grateful for her service and wishes her the best. Read more Comment (0), Email this.

MS. PERINO: I'm not going to comment. Read more Comment (0), Email this.

MS. PERINO: Let's try something else. (Laughter.) Read more Comment (0), Email this.

MS. PERINO: On the farm bill, we've been very clear what our position is, and members of Congress have been working hard because it's a big piece of legislation, an important piece of legislation. I think that it's premature to say that there is anything final and they continue to work, and we'll continue to have communications with them. Read more Comment (0), Email this.

MS. PERINO: No, I don't think so. I don't know of anything that's scheduled, but I think that Secretary Schafer was just up there yesterday with Deputy Conner and on a staff level we've been communicating and people have access to share their views both ways and we've been very clear what our position is. Read more Comment (0), Email this.

MS. PERINO: I'm not going to comment. She tendered her resignation and it was accepted.

I'm going to go to Goyal. Read more Comment (0), Email this.

Q Dana, two quick questions on the reports. This morning State Department released (inaudible) country

MS. PERINO: We have expressed our concerns about this agreement. Obviously this is something that was tried before. It did not work before. It's important that any agreement be effectively enforced and that it not interrupt any operations where we are going after terrorists in that area. And we are continuing to work with the new government of Pakistan. We think that we can work effectively with them and we have very clear and frank discussions to make sure they understand where we're coming from. Read more Comment (0), Email this.

Q Second, (inaudible) at the Newseum yesterday released a report worldwide and freedom of the press

MS. PERINO: President Bush has said -- I heard him say that in a democracy one of the very most important things that you need to have is you need to have a strong defense, but almost more importantly is you need to have a strong and free press, a free and independent press. We are concerned about people around the world who are acting as journalists and telling those stories and bringing those stories from all over the world, such as in Zimbabwe, for example, where journalists have been treated very badly just for trying to report on a story. And they should be allowed to do that anywhere they want to in the world, and we rely on them for a lot of information and we hope that all governments around the world would respect that journalists deserve that right. Obviously they don't have the press freedoms everywhere that people enjoy here. So we are very fortunate to live in this country.

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

Q On the Warner-Lieberman bill, based on yesterday's Energy Information Administration analysis of

MS. PERINO: I don't know whose reports you're looking at. I think that the independent Energy Information Administration, which is the statistical arm of the Department of Energy, is quite credible. And I think that anyone who looks at that report yesterday and sees that a cumulative impact on our economy of a loss of $530 billion to $1.5 trillion and a potential loss of up to 1 million jobs would say that that cost of that legislation is entirely too high.

The President laid out principles for how he would suggest climate legislation go forward, and suggesting a right way and a wrong way to do things. He believes that we can tackle this problem without ruining our economy, and in fact we won't be able to solve this problem if we have a bad economy, because we need the money to pump into the new technologies.

Les. Read more Comment (0), Email this.

MS. PERINO: But who's counting? Read more Comment (0), Email this.

Q -- all reporting the National Press Club statements of the Reverend Jeremiah Wright. And my question

MS. PERINO: I surely will. Read more Comment (0), Email this.

MS. PERINO: Evade your question. Read more Comment (0), Email this.

MS. PERINO: What's your second one? Read more Comment (0), Email this.

Q Now that Mr. Aldrete Davila, the drug smuggler in the Ramos-Compean case, has admitted running

MS. PERINO: I would encourage anyone to look at the facts in the case as laid out by the attorney general -- Read more Comment (0), Email this.

MS. PERINO: -- by the county -- district attorney -- I'm sorry, the U.S. attorney in that area. There is a process under which anyone can apply for a pardon or a commutation. And if they want to take advantage of that process, they're absolutely welcome to. I'm not able to announce any -- Read more Comment (0), Email this.

MS. PERINO: And I'm going to move on to Helen. Read more Comment (0), Email this.

MS. PERINO: Sounds like you have plenty of material to work with, and I don't think I need to give you anything else.

Helen. Read more Comment (0), Email this.

MS. PERINO: What you're referring to is the banner that ran -- that was aboard the ship five years ago. President Bush -- Read more Comment (0), Email this.

MS. PERINO: Yes, I get -- no, I understand. That's the anniversary of when that banner flew on that ship. President Bush is well aware that the banner should have been much more specific and said "mission accomplished for these sailors who are on this ship on their mission." And we have certainly paid a price for not being more specific on that banner. And I recognize that the media is going to play this up again tomorrow, as they do every single year.

I think what's important is what the President would -- how the President would describe the fight today. It's been a very tough month in Iraq, but we are taking the fight to the enemy. The President, you heard him say yesterday, believes that fighting terrorists, jihadists, al Qaeda, and the Iranian-backed militias -- Read more Comment (0), Email this.

MS. PERINO: -- and the Iranian-backed militias -- Read more Comment (0), Email this.

MS. PERINO: Helen, we are going after terrorists and al Qaeda and Iranian-backed Shia militia who are killing not only innocent Iraqis but our soldiers as well, and we're doing so in -- Read more Comment (0), Email this.

MS. PERINO: -- we are working very closely with the government of Iraq in order to take back these provinces. And I would point you to Basra and the battle on Basra, in which the initial reports was that it was an unmitigated failure. And actually if you look at it now, we were -- the Iraqis, working with us, with our support, were able to take back that port and that town. And I think what that shows is that Prime Minister Maliki, once he decided to take on these criminal elements, brought together his government, and now they're backing him and they're working together, and now they want to start taking on other militias, such as in Sadr City.

But remember, Helen, when we are going after these terrorists and the ones who hide amongst innocent civilians -- Read more Comment (0), Email this.

MS. PERINO: But they hide amongst innocent civilians, and that is where you get problems that we obviously regret and go out of our way to avoid. Read more Comment (0), Email this.

MS. PERINO: Yes, I'm well aware. I am sure it will be a great question. Go ahead. Read more Comment (0), Email this.

MS. PERINO: Definitely going to be a good question. (Laughter.) Read more Comment (0), Email this.

Q -- over the last six years the Pentagon conducted a secret operation designed to sell the war in

MS. PERINO: Do you have a question? Read more Comment (0), Email this.

MS. PERINO: Is this your opinion? Read more Comment (0), Email this.

MS. PERINO: What's your question? Read more Comment (0), Email this.

MS. PERINO: Look, I didn't know -- look, I think that you guys should take a step back and look at this -- look, DOD has made a decision, they've decided to stop this program. But I would say that one of the things that we try to do in the administration is get information out to a variety of people so that everybody else can call them and ask their opinion about something.

And I don't think that that should be against the law. And I think that it's absolutely appropriate to provide information to people who are seeking it and are going to be providing their opinions on it. It doesn't necessarily mean that all of those military analysts ever agreed with the administration. I think you can go back and look and think that a lot of their analysis was pretty tough on the administration. That doesn't mean that we shouldn't talk to people. Read more Comment (0), Email this.

MS. PERINO: A couple of announcements. As I mentioned last week, the President will travel to St. Louis, Missouri this Friday; the topic will be on the economy, and then more details to come on locations and logistics.

On the Mideast trip, the President and Mrs. Bush will travel to Israel, Saudi Arabia and Egypt from May 13th to the 18th, 2008. In Israel, the President will meet with President Peres and Prime Minister Olmert and address the Knesset. The President will then travel to Saudi Arabia and meet with King Abdallah. In Egypt, the President will meet with President Mubarak. The President will also hold meetings in Egypt with King Abdullah II of Jordan and Palestinian Authority President Abbas, and deliver remarks at the World Economic Forum on the Middle East.

The President's visit to Israel will celebrate Israel's 60th anniversary and our close ties over the past six decades. His visit to Saudi will also commemorate the 75th anniversary of the formal establishment of U.S.-Saudi relations. In his meetings with regional leaders the President will reaffirm efforts toward peace and prosperity and our close work with regional allies to combat terrorism and promote freedom. See you on the trip. Read more Comment (0), Email this.

Q Dana, following up on the Mideast, President Abbas left town with some discouraging words about

MS. PERINO: I think you should go back and look at the comments in full from the President and President Abbas, as well as remember what the purpose of the meeting was. I don't think anyone anticipated that there would be some sort of breakthrough at a meeting between President Abbas and President Bush.

The breakthroughs are going to come between the Israelis and the Palestinians. That is where the negotiations are more mature for a peace settlement than they are in other parts of the region, because you have two leaders who are committed to it. So I would point back to the fact that they had a -- the President welcomed President Abbas here in advance of his trip. The President is wanting to meet with these leaders as they work towards the problems that they know that they need to solve.

But a few things about that meeting that I would point out to you as well. Both reaffirmed their commitment to continuing to work together to help define a Palestinian state by the end of this year. And Prime Minister Olmert has said the same. So on the main issues there was agreement, there was a back-and-forth. I would point out to you as well that they had a private meeting, one-on-one, after the group meeting, of which I was a part of, which I think reflects that these two leaders have great trust in one another, they can speak very frankly. And I think across the board the Israelis and the Palestinians and the people of the United States recognize that more needs to be done.

But they continue to have discussions -- that's a good point -- and moments like where the President is going to go and travel to the region can create opportunity to push the system a little bit further. But we're under no illusions that things are going to happen immediately. There's a lot of deep-seated history that has to be addressed if they're going to define a state by the end of the year. And we know how much hard work there is to be done and that's one of the reasons that the President is going back to the region. Read more Comment (0), Email this.

MS. PERINO: Well, I would point back to one thing that the President has said, which is that when you are dealing with terrorists you have to be right 100 percent of the time and they only have to be right once. Thankfully President Karzai was not harmed, but we grieve for those who lost their lives and we are praying for the victims who are recovering from wounds because of that attack.

But I think that if you look across Afghanistan, they have improved their security forces tremendously based on the support that they've had from the NATO allies who are providing security training and providing equipment. Afghanistan basically started from square one as a country, and they are dealing with terrorists who have modern weapons. And so the terrorist threat is real, it is deadly, and defeating this enemy must be the top priority of the Afghanistan government, the United States government, and the NATO allies who are there fighting alongside them. Read more Comment (0), Email this.

MS. PERINO: No, but they usually speak every other week, so I anticipate that could happen soon. Read more Comment (0), Email this.

MS. PERINO: On their own? Well, I think if they were at a point where they could handle things on their own, we wouldn't need to increase the NATO -- the amount of NATO troops that are there, which is something that we just did three weeks ago when we were in Europe at the NATO summit, because everyone reaffirmed their commitment to helping the Afghani government rebuild, and part of that rebuilding is not just on the economic and diplomatic side, but on the security side.

And so we're going to continue to be there, and it's going to take a robust effort to help their security forces get to where they need to be. But I think that they need to be praised for what they've been able to accomplish so far, and they need to be helped in order to get to where they need to be. And we're committed to being there.

Go ahead, Toby. Read more Comment (0), Email this.

MS. PERINO: I wouldn't read too much into it. I think that one is scheduling. The President just met with President Abbas here and then he was just there back in January. As we said earlier, that the President would be going to Israel to celebrate the 60th anniversary. And so he'll be doing that. I think the Palestinian people are assured that the President is committed to helping them establish their own state. He's the first President to call for a Palestinian state and he has followed through on that commitment, not just personally, but also through sending very high-level people there, such as Secretary Rice, who has been there multiple times in order to help bring about the peace.

We are also very concerned about the humanitarian situation of the people in Gaza. And we recognize that they need help, and that is why we are providing humanitarian services and funds and goods and services, in order to help people there live a better existence. But we would remind everyone that the reason that they are in this situation is because of what Hamas has decided to do in usurping control from the legitimate Palestinian government.

We look forward to going. We look forward to the meetings that we're going to have in Egypt. We'll have details for you as things develop there. As you know, in the Middle East when you're talking about all those issues, things are very dynamic and fluid and we hope that they continue to push in the right direction. But we're going to have to push them faster than they've been going.

Kathleen. Read more Comment (0), Email this.

Q Dana, in letters that were sent to Congress on March 5th, the Justice Department makes the case

MS. PERINO: No one at the Justice Department is suggesting that torture is allowed. As we have said repeatedly, torture is not allowed. And the Justice Department's interpretation of Common Article 3 is consistent with interpretations by international criminal tribunals. And like those international courts, the Justice Department view is that in many cases where a particular act violates Common Article 3, it depends on the facts and the circumstances. And that's what those letters detailed.

And the purpose underlying an act would be one relevant factor, and that is determining whether the conduct would be judged out of bounds. And that's exactly why we have people in positions where they can make those judgments and make those determinations. But I would refer you to the Justice Department for more. Read more Comment (0), Email this.

MS. PERINO: No, of course not. Read more Comment (0), Email this.

MS. PERINO: Well, we know that there are many different factors contributing to the food crises around the world. One of them, and a relatively new factor, would be biofuels. While it might have some impact, it's not a huge impact. And it is something that we are all going to have to take into consideration as we move to economies that can run on alternative or renewable fuels.

But the bigger problems in regards to food -- the food crises around the world is, one, the cost of energy, and especially the cost of transporting energy from one place to the next. Another one is weather. There has been terrible drought, especially in Australia, which is the biggest exporter of wheat. And you also have problems with demand, global demand.

In some ways that can be looked at positively, in that incomes around the world have increased such that people can afford to buy more food and actually eat more meat and more protein, which is not a bad thing for people as they're trying to improve their standards of living and lift themselves up out of poverty. But there is a balance to be struck. One of the things that we did two weeks ago was announce $200 million in addition for food aid around the world. We are considering what other aspects need to be taken care of. On any given year the United States provides up to 50 percent of the world's food for people who are living in hunger, and it's something that the President takes very seriously. He's really concerned about the humanitarian condition around the world; he doesn't want anyone to go hungry.

Go ahead, Mark. Read more Comment (0), Email this.

Q Yes, Dana, a lot of economists worry that folks are going to take that rebate that arrives starting

MS. PERINO: I think as I've learned, you can find an -- there are economists who will say all sorts of different things. But I think that what the President did was take a -- listen to the comprehensive view of the economists here in the federal government, the experts here who believe that looking at past stimulus efforts, where most people do spend their checks. The President is not going to dictate to anybody what they should do with this money. It is giving back money to the taxpayers in the form of these stimulus checks, and if they decide to spend it, that's great. And if they don't, the President understands it's their money and they're going to decide what to do with it.

But we still believe that it -- that the stimulus package will have the desired effect of boosting the economy and creating about 500,000 jobs before the end of the year.

Go ahead, Les. Read more Comment (0), Email this.

Q Thank you, Dana. Two questions. First, does the President believe that Congress, as well as the

MS. PERINO: I think we went over this last week. I don't have anything else to add. Read more Comment (0), Email this.

Q "Human Events" reports that when John Gizzi asked you about any possible prosecution of Mr. Carter

MS. PERINO: Let's just put it this way: No one is suggesting revoking President Carter's passport, period. Read more Comment (0), Email this.

MS. PERINO: Period.

Peter. Read more Comment (0), Email this.

MS. PERINO: I don't have a lot yet in terms of detail. I wanted to make sure you guys knew the places where we are going and the basic meetings, but those details are still firming up, so I don't have specifics yet. Read more Comment (0), Email this.

MS. PERINO: Yes. The President will have a meeting with President Mubarak in Egypt, yes. Read more Comment (0), Email this.

MS. PERINO: Well, I think we just -- Read more Comment (0), Email this.

MS. PERINO: I think that -- I think General Petraeus and Ambassador Crocker described it best for us just two weeks ago when they were here reporting back to Congress on the state of the security situation, which is that it has improved, but that we have a lot to -- a ways to go, and that the gains that we've made on the security front are reversible and, therefore, we have to make decisions as to what our troop posture is going to be.

You heard the President's decision, which is we're going to continue to bring home the brigades that we had talked about bringing home -- going from 20 brigades down to 15. And then General Petraeus has said he needs some time to consolidate and then make an assessment before we bring more troops home.

So that's where we are. We think that the Iraqi security forces have continued to improve, and there's many different tracks that we have to be working on. One is on that front. The other is on rooting out these militants, like we have done in helping the Iraqis in places such as Basra. And we have to continue to help them on the economic and political fronts, as well, which they're starting to increasingly pay for their own way in terms of reconstruction. Our financial commitments on reconstruction have gone way down and theirs -- their commitment to their own reconstruction has gone way up. Those are trends that we want to continue as we move forward, especially because we have the war supplemental debate coming up in May. Read more Comment (0), Email this.

MS. PERINO: I would say that we are there at the invitation of the Iraqi government, helping them get back on their feet after years of a dictatorship, and that they are building a democracy and that they have made a lot of strides, but we have to be there in order to help them accomplish what they seek to do, which is to have a government that can sustain, govern and defend itself.

Ann. Read more Comment (0), Email this.

Q Back on the Middle East quickly, on this trip. How would you characterize his time in Israel?

MS. PERINO: Well, of course he's going to be talking to the Israelis and, again, I don't have details in terms of all of the meetings. But the President is going to go there to celebrate, but also to continue to push on the peace process. And in addition to that, as I said, he will be making a speech at the Knesset, which will be a first for the President of the United States -- this President of the United States -- and something that the President is looking forward to. It's going to be an important speech.

Connie. Read more Comment (0), Email this.

MS. PERINO: Well, we have had people in the region there, and they will be reporting back to the President soon. We remain very concerned about the humanitarian situation in Zimbabwe, especially when you see reports of people being persecuted for expressing their political views. And so we will keep on top of it. We would like a peaceful end to this solution. We urge anyone who is thinking about sending arms to the region to rethink that so that we can try to solve this peacefully. And when there's more to report back on regards to the people who have been there for the President, I'll get it to you. Read more Comment (0), Email this.

MS. PERINO: The President would like to have it solved, but it's a very thorny issue. It's very complex and complicated, and this Congress has decided that they don't want to deal with it. But the President is very worried about what's going to happen to the future of Social Security. And I do believe that in a few years, when Congress finally gets serious about solving it, that the resolution will look a lot like what the President first proposed.

Go ahead, Goyal. Read more Comment (0), Email this.

Q Dana, two questions. One, this morning at Carnegie, Special Ambassador to the U.N., Mr. Kai Eide

MS. PERINO: Let me just remind you, again, when it comes to dealing with terrorists, like the Taliban and al Qaeda, they just have to have even a semblance -- it has to look like they had a little bit of an impact for everyone to say that they had a big victory. Well, we have to be right every single time in order to prevent terrorist attacks, and it is damn hard work. And I shouldn't have probably said that word -- (laughter) -- but I am just really frustrated at thinking about how hard these Afghan security forces work and how much they are up against and how we have a responsibility to continue to stay there and help them.

Just remember, three weeks ago all of the NATO nations recommitted to helping Afghanistan get back up on its feet, and that's -- part of that is going to be the security forces issue. And so I think everyone needs to take a step back and look at what they've accomplished, because they really started from zero -- they had nothing -- and they've accomplished a lot. They deserve our help, not our condemnation. Read more Comment (0), Email this.

Q And second, as far as (inaudible) problem is concerned, as far as India-U.S. civil-nuclear agreement

MS. PERINO: Well, I just want to remind -- you often want me to say whether or not we think that this deal is dead. We are never going to declare it dead because we think it's critically important. We are appreciative that the Indians are reconsidering their position, that they continue to have dialogue about it, and the fact that they are here in Washington talking about it is a good sign. Read more Comment (0), Email this.

MS. PERINO: Okay. We are on our way to Connecticut, and I have a special guest with me, Admiral Tim Ziemer, who I will turn over to in a second, because he heads up the President's Malaria Awareness Initiative and was with the First Lady yesterday and has an update for you. Let me do that schedule really quick and then I'll turn it over to him and then take questions at the end on other topics, if you have them.

At 7:00 a.m. this morning the President taped his radio address. In it he will call on Congress to pass the Ensuring Continued Access to Student Loans Act to help ensure the stability of student loans. I would refer you back to maybe either the gaggle or the briefing from the other day, in which I explain the concerns that we've had and the letter that Secretaries Paulson and Spellings sent, and Director Nussle, calling on the Senate to move swiftly on this education authority to purchase federal family education loans, because we are concerned about a possible problem when the students start applying for loans -- which their peak season comes up in July and August this year.

And then at 8:00 a.m. he had his normal briefings. At 9:00 a.m. he signed the Presidential Proclamation in honor of Malaria Awareness Day. I'll let Admiral Ziemer talk a little bit about that. At 11:10 a.m. the President will visit the Northwest Boys & Girls Club, and then at 11:45 a.m. will make a statement on Malaria Awareness Day. At 1:35 p.m. he attends a David Cappiello for Congress and Connecticut Victory 2008 reception. And then he'll return to the White House at 4:20 p.m. tonight.

Onboard the aircraft is Congressman Chris Shays. So before I do the week ahead or answer other questions, let me turn it over to Admiral Ziemer. ADMIRAL ZIEMER: Good morning, everybody; nice to be with you. Today one of the events, which is a continuation, really, of two years of events of this administration's commitment to doing something about the malaria problem in Africa -- is to highlight the fact that in addition to the U.S. government's position, it's essential that we get partners engaged. In addition to our bilateral and G8 partners, it's important for the private sector and the civic sector and the business sector to engage.

So today we're highlighting and acknowledging the fact that, based on the White House summit last year that the President and First Lady hosted, where the Boys & Girls Club pledged to participate on the civic side to build awareness and to get engaged as kids in the fight against malaria -- so today is an opportunity to showcase the outstanding work that the Boys & Girls Clubs have already done in one year to acknowledge a couple key individuals who have actually gone out and raised $11,000, $20,000, $30,000 and giving it through "Nothing But Nets" or through "Malaria No More" channels to save lives in Africa.

So today, again, we're acknowledging the civic side of the partnership, acknowledging some individual efforts and continuing to support the Boys & Girls role in the fight against malaria. Read more Comment (0), Email this.

ADMIRAL ZIEMER: Yes. Scientifically, it is. When you look at the complexity of the context of each country, of course it begs the question, "Can we?" But malaria is a disease that we understand, we know what causes it and we know how to prevent it and we know how to cure it.

To date -- and let me -- the other context is, to date, 3,000 kids are going to die of malaria in Africa. And if, in fact, we know how to prevent it and we know how to cure it, that's unconscionable. This administration has embraced two major infectious diseases: HIV/AIDS and malaria. And this President, with a $1.2 billion commitment, has basically energized the malaria fighting community.

So along with our other funding partners -- like the Global Fund, of which 30 percent of the money comes from the U.S. taxpayers and the World Bank, of which the United States government is contributing a lot to, and the Gates Foundation, and then the private sector, like "Malaria No More" and "Nothing But Nets" -- we're seeing a 300 percent increase in funding.

So with the awareness and with the leadership coming together through WHO, through governments and through the private and civic sectors, and, most importantly, with our host governments, I think that we must say elimination is the goal. And let's not pin ourselves down on a timeline, because what's going to happen -- if people trying to figure out when we're going to eliminate it, we're going to fall short. This is a complex disease, it's been around for thousands of years and I think today what we're seeing is more funding, improved leadership and the science and the commitment to move in that direction. So I'm encouraged that people are talking about elimination. MS. PERINO: Can I say one thing? The President is going to today talk about Zanzibar and the example there -- could you give that to them as a preview? ADMIRAL ZIEMER: Yes. The President's Malaria Initiative has invested, to date, about $300 million. And with our other partners we're seeing some significant trends. In Zanzibar -- and the President will highlight this -- using blood smears, positive proof, we're seeing infection rates of 20 percent from kids going into the clinics, to less than 1 percent that are positively infected with malaria. MS. PERINO: Is that over two years? ADMIRAL ZIEMER: Over two years. And that's after the use of bed nets, insecticide-treated bed nets and spraying homes. In Malawi, where we have really accelerated the distribution of insecticide-treated bed nets, we're seeing a drop of 43 percent in anemia. And of course, malaria causes anemia, which is a significant thing.

We're also seeing significant percentage drops in places like Tanzania and Uganda. I brought along some handouts here, which has specific data on what we've done and some of the trends -- I'll be happy to leave with you if you find that helpful. Read more Comment (0), Email this.

ADMIRAL ZIEMER: I would say there's a correction: Congress hasn't approved it; the House has approved the bill, and the Senate is still working through it. Read more Comment (0), Email this.

ADMIRAL ZIEMER: HIV/AIDS is a huge problem. When you look at the complexity of HIV, a lot of funding is needed. But what's significant in this PEPFAR bill is tucked in, in the same bill, is authorization for increased funding for malaria and TB. So what's significant here is that this bill recognizes again that this administration is committed to doing a whole lot more against the infectious diseases of HIV/AIDS, malaria and TB.

So if you look on, like, page 32 of the bill, you'll see that malaria and TB funding has increased. It's authorized up to a billion a year, which has never been -- happened. Read more Comment (0), Email this.

ADMIRAL ZIEMER: Yes. Read more Comment (0), Email this.

ADMIRAL ZIEMER: It's in the bill. Read more Comment (0), Email this.

ADMIRAL ZIEMER: It is the congressional bill. MS. PERINO: We'll check to see if that was our original proposal. ADMIRAL ZIEMER: But it also reflects this administration's commitment -- let me just remind you, in 1997 USAID spent a million dollars on malaria in Africa. This year as we ramp up, my budget is $388 million for only 15 countries. So this administration and this Congress has changed the landscape with funding like we've never done historically before. Read more Comment (0), Email this.

ADMIRAL ZIEMER: Well, because there are 4,000 Boys & Girls Clubs that -- this club, I think, is the first one. MS. PERINO: First ever. ADMIRAL ZIEMER: When this -- when the Boys & Girls Clubs were invented, Connecticut was the first one, I understand. And it's an opportunity to showcase the NBA, professional soccer; get the high-level celebrities. Melinda Doolittle will be there; she's been with the First Lady and me in Africa just to bring awareness up. So I'm really grateful that when the opportunity comes in that we can leave Washington and acknowledge where communities are engaging.

Today at Georgetown University there's a huge effort. In Oklahoma, they set today aside as Malaria Awareness Day. So throughout the country there are different organizations on the academic level, civic level, to bring the awareness up and challenge people to do something. So I think it's a natural fit as we go to Connecticut today. Read more Comment (0), Email this.

Q On the global health issue -- obviously there's a food crisis right now. You've got food riots

ADMIRAL ZIEMER: Unfortunately, poverty is really the basis of malaria. Years ago we had as much malaria in this country, but we sprayed, we put screens in our windows, we put air-conditioning in our houses, and basically we've eliminated the parasite. We still have the same mosquitoes that they have in Africa, and if the parasite pops back up, we'd have a malaria epidemic if it wasn't controlled.

But when you look at the world situation and poverty, it spreads across every aspect of the complex world that we're in. Certainly, if we save a child or a mother from malaria or HIV and they die of hunger, that's unconscionable too. So as we work together, we can't say it's either/or. We've got to collectively look at the priorities, look at the shifting landscape, and do the best we can with our other partners. MS. PERINO: Thank you. I'll let you go back to your breakfast. ADMIRAL ZIEMER: Okay. MS. PERINO: I'll pass them out. ADMIRAL ZIEMER: Yes, take a look at this. We released this yesterday; it's on our website, and we welcome any questions through Dana. We want to be informative; grateful to have you along. MS. PERINO: Stuart, will you do the honors after this? Okay. Anything else before I do the week ahead? Read more Comment (0), Email this.

MS. PERINO: You guys, you've got to -- maybe I need to stand on a box.

One of the things I would do is refer you to the intelligence community's background briefing. They released a transcript last night, so I would -- late last night, so let me refer you to that to make sure they answer a lot of your questions. One of the things that we believe and hope that this disclosure will do is help North Korea come forward on its declaration on three areas: the proliferation activity, but also to provide a more complete and accurate disclosure of their plutonium activities, and their enrichment activities as well. So we are hopeful, and we have negotiators on the ground who are continuing to talk with them and work with them, as they have been, and we'll have to see what they -- the ball is in their court for the next set. Read more Comment (0), Email this.

MS. PERINO: I would refer you to that briefing from yesterday for details on that. But I think -- you heard Secretary Rice last week and the President just last Saturday at Camp David talk about the next step, and I'd just reiterate it. We have negotiators on the ground, and what we hope is that this will encourage them to come forward with a full and complete declaration on those three areas of their activities. Read more Comment (0), Email this.

MS. PERINO: Well, we called on them to make a -- to come clean to the world, and I saw today that the IAEA is taking this matter very seriously. And I don't know what their next steps will be at the IAEA, but we would encourage Syria to come clean on their activities. Read more Comment (0), Email this.

MS. PERINO: We acknowledge that they made that statement, but I do think that what -- where we are now is pleased that they are taking it seriously, and encouraged by the rapid response, and hope that they will be able to get somewhere with the Syrians. Read more Comment (0), Email this.

MS. PERINO: Well, yes, the news of the day -- Read more Comment (0), Email this.

MS. PERINO: The news of the day -- last night the IRS was able to announce that the rebate checks, in the form of the direct deposit, are going to be able to reach people's bank accounts earlier than expected. They had anticipated it would be May 2nd; that is next Friday. It's actually now going to happen on Monday, May -- I'm sorry, Monday, March -- April 28th. Read more Comment (0), Email this.

MS. PERINO: Thank you -- Monday, which is a full five days sooner. And the President wanted to make that clear to people because they are starting to anticipate that they'll be getting these checks.

The other point that he made today is that there are still some people out there who do not file income tax returns because they do not pay enough in income taxes, but a lot of those people are still eligible to get a rebate check. But in order to get it, they still have to fill out an EZ form -- but they have to fill it out, and if they don't fill it out, they're not going to get the rebate checks. So the President took this opportunity to again remind people that they can get their check, but they have to fill out this form, and they can do so by going to the IRS website, or their local IRS office will have it, too. Read more Comment (0), Email this.

MS. PERINO: Well, you've been on all the trips. Have you seen any drop-off in demand? Read more Comment (0), Email this.

MS. PERINO: Look, when it comes to the President's fundraising, supply cannot keep up with demand. We are unable to get to all of the fundraisers that we have requests for. And I don't have the exact totals with me, but I know that the President continues to make great gains with the Republican Party and individual candidates, as he'll do again today.

Week ahead? Read more Comment (0), Email this.

MS. PERINO: And then we'll release this so that you don't have to write everything down, because it's kind of busy.

As you know, Saturday night he will remarks at the White House Correspondents Association dinner. On Sunday he'll be here in D.C. On Monday he will meet with the President of Guatemala; Oval Office, pool at the bottom. At 1:55 p.m. on Monday he will meet with the Co-chairs of the U.S.-Brazil CEO Forum. He will have them over at the EEOB Room 350; pool at the top. And then the President will meet with the National Commander of the American Legion, Oval Office, at 3:30 p.m. that day.

On Tuesday at 1:15 p.m. the President will meet with the Special Representative of the United Nations Secretary-General for Afghanistan. At 1:50 p.m. the President makes remarks on National Volunteer Week, and we'll do that in the Rose Garden, open press.

On Wednesday, April 30th, at 11:00 a.m. he will have a photo opportunity with the 2008 National and State Teachers of the Year, an annual event. I can't -- I feel like it just happened, but time, I guess, is going by fast. Stills at the bottom of that. And then the President will make remarks to them in the Rose Garden; that will be open press. At 3:20 p.m. he'll have the New York Giants in; South Lawn, open press. At 6:55 p.m. he'll attend a National Republican Congressional Committee Reception -- aha, another one, Roger -- at a private residence in Fairfax, Virginia.

On Thursday, May 1st, he will make remarks on the National Day of Prayer in the Rose Garden. And at 2:50 p.m. he will make remarks at a celebration of Asian Pacific American Heritage Month.

Friday, May 2nd, there will be travel to Missouri -- details to be announced. And then he will overnight in Crawford for two nights. You guys will probably want to get that back to folks so that you can get your rooms organized, okay? Read more Comment (0), Email this.

MS. PERINO: Friday night, May 2nd, and Saturday night, May 3rd.

On Sunday, May 4th, the President will deliver the commencement address at Greensburg High School, a year to the day of that devastating tornado. And we'll release that as soon as possible so that you can get that out there. Read more Comment (0), Email this.

MS. PERINO: Hello, everyone. I don't have anything to start with, so we'll go straight to questions. Read more Comment (0), Email this.

MS. PERINO: As I said this morning, there are many things I'm not going to be able to comment on in today's briefing, which I know is very frustrating, not just for you but for me, too. Read more Comment (0), Email this.

MS. PERINO: But commenting on -- by answering that question I would be also answering the previous question. There are Hill briefings that are ongoing right now. Out of respect for that process, and for the members of Congress to be able to hear this from administration officials first, I'm going to defer to answer specific questions on that until they have a chance. But I would refer you back to what the President said on -- just last Saturday at Camp David in regards to the North Koreans and the six-party talks and North Korea's declaration. Read more Comment (0), Email this.

MS. PERINO: Again, I'm going to decline to comment on specifics of whatever is being said to Capitol Hill right now and what other people -- what you all might see later today. Read more Comment (0), Email this.

MS. PERINO: I'm not commenting on it. You can chase me around the podium -- (laughter.) Read more Comment (0), Email this.

MS. PERINO: Again, Mark, I am going to -- I understand the question. I appreciate that you'd like for me to be able to answer it. I am not going to be able to answer these questions. I'm going to let the senior administration officials and intelligence officials talk to Capitol Hill. Last fall we did brief 22 members of Congress, House and Senate members, consistent with our obligations. More members are being briefed today and I'm going to let that process take place. Read more Comment (0), Email this.

Q Dana, on that point, because you brought up the lawmakers, two of them who were briefed today who

MS. PERINO: Obviously we would be very disappointed that he feels that way and would hope he understands our tremendous respect for members of Congress. And as I said, back in the fall we briefed 22 members of Congress, consistent with our obligations. He was one of them. There are tensions that exist between the executive branches and the legislative branches on a range of issues in regards to who should know what when. But we will continue to work with Representative Hoekstra and continue to talk with him. And he was part of the briefings this morning, and again, I'm not going to comment on anything until those briefings can be completed today. Read more Comment (0), Email this.

Q He says he just doesn't feel that then, in September, eight months ago, that they got any kind

MS. PERINO: Again, I will decline to comment. There will be more information that will hopefully answer more of these questions later today. It could be that once senior administration officials talk with Representative Hoekstra that he still won't be satisfied, and we'll have to satisfy that he got an answer that he believes is satisfactory. We'll have to accept that -- that's his opinion. But we certainly have tried to work with him and the Democrats across the board, and consistent with our obligations, briefed the appropriate members of Congress last fall. Read more Comment (0), Email this.

MS. PERINO: Our pressure on North Korea has been ongoing through the six-party talks, and you just heard from the President on Saturday about that. I think that by the end of the day, I think a lot of these questions will be answered for you. I'm not able to go into details here.

Bret. Read more Comment (0), Email this.

MS. PERINO: I believe that you will be given more information about that later today and that -- again, will it satisfy everybody? I don't know. But let's let the briefings take place and then we can go from there. Read more Comment (0), Email this.

MS. PERINO: As I said this morning, I am working to get something that could come out from me as soon as possible. I'm having to be respectful of the congressional briefing schedule that is ongoing today, and I'm trying to push the system a little bit for not only our interest to make sure that we inform the American public, but for yours so that you get -- don't get jammed on the back-end of your day. I'm aware of deadlines and hope that we can meet them. Read more Comment (0), Email this.

MS. PERINO: I'd just refer you to the intelligence community for that. Read more Comment (0), Email this.

MS. PERINO: I hesitate to put a time on it. I'm pushing as hard as I can. It probably will not be as early as I would like. Read more Comment (0), Email this.

MS. PERINO: I'm trying to work on that and trying to push the system a little bit. I'm not sure if I'll be successful. Read more Comment (0), Email this.

MS. PERINO: Of course, we'll just have to -- our senior officials and our staff talk with him and his staff on a regular basis. Read more Comment (0), Email this.

MS. PERINO: Yes. Read more Comment (0), Email this.

MS. PERINO: Well, let's let the briefings take place and the declaration take place, and we will move on from there. Read more Comment (0), Email this.

MS. PERINO: This will not come as a surprise to any members of the six-party talks. Read more Comment (0), Email this.

MS. PERINO: I don't know who reached out, if they did. So I'm not aware of that. I don't know who it would have been. But I think when I have my statement today that you'll have later this afternoon, that that question will be at least partially answered. Read more Comment (0), Email this.

MS. PERINO: Is everyone okay with that? Okay. Read more Comment (0), Email this.

MS. PERINO: Okay. Read more Comment (0), Email this.

Q Some Senate Democrats are threatening to block arms deals if the Saudis, the Kuwaitis and other

MS. PERINO: Okay, I'll go in order then, taking the first question first. I think once again the Democrats are barking up the wrong tree. The last thing that we want to do is increase our dependence on foreign sources of energy. For years they have been in the lead to block efforts to have environmentally responsible exploration and production in our own country. Arms deals are not favors that we do for friends; they are in our national strategic interests and something that we work closely with Congress on.

And therefore, what would be most productive on Capitol Hill right now is to take measures into their own hands and work to make sure that we are increasing production and exploration here in our own country, so that we can reduce our dependence on foreign sources of energy in ways where we know how to do it, without harming the environment -- or with minimal impact on the environment, while we work to transition our economy to one where we would be able to operate on less traditional sources of energy -- alternatives and renewables.

I would remind you that it was just in his 2007 State of the Union address that an additional plan the President put forward was to reduce traditional oil and gas use by 20 percent in 10 years. We were able to get that bill passed. It doesn't go as far and as fast as we would like, but just this week, on Tuesday, Secretary Peters of the Transportation agency, said that on the mileage-per-gallon standards that were supposed to be increased at 4 percent a year, that we think that we can do better and we can do it faster, and so we're going to do it at 4.5 percent a year.

So we're trying to push the technology and push the system. But the suggestion that they made today is not one that we could support, for the reasons I said. Read more Comment (0), Email this.

MS. PERINO: So to that point, the purpose of the Strategic Petroleum Reserve is to provide the United States with oil in the event of a severe disruption of supply. It has been ineffective when it has been used to manipulate the price in the past. And the administration continues to fill the reserve at a very modest rate, and we don't believe the fill rates have a meaningful impact on oil supplies, as this oil equates to less than one-tenth of 1 percent of daily world consumption. Read more Comment (0), Email this.

MS. PERINO: You know, I think that Senator -- that those types of -- that those remarks are ones that again continue to ignore the root cause of this issue. And continuing to blame other countries, when in fact, those countries -- and the one that he mentioned, especially in regards to Saudi Arabia just this week talked about how they have spent billions of dollars to explore for more oil in their own country. There are limits to supply and there is a huge amount of demand.

We can encourage them, and we have asked them, to increase production. But we are not going to be able to do so in a way that waves a magic wand and immediately reduces gas prices. And I would say this about that particular Senator that you mentioned: For the very same people that are clamoring for lower gasoline prices, they are the same ones that are hailing policies in the United States Senate that would expressly increase gas prices or electricity prices. And I could point to the Warner-Lieberman bill as one that across the board economists have forecasted would increase gas prices. Read more Comment (0), Email this.

MS. PERINO: Sure, there's ANWR, which we've been talking about for years. And I think that the issue -- there are so many facts on the ground now when it comes to that, that it's disingenuous to suggest that it would harm the environment, because we know how to do it in the best possible way, with the newest and best technologies on Earth that could help us produce that; plus, not to mention, all of the jobs that it would create up in that part of our country.

In addition, there is offshore oil that we could pursue in ways that don't hurt viewscapes, as has been a concern, but also ones that take into account the way to do offshore oil in a way that will not harm the environment. Read more Comment (0), Email this.

MS. PERINO: We absolutely agree. We absolutely agree that there are -- if there are any cases of price gouging, that they should be fully investigated. But I think that, again, to bark up the wrong tree and suggest that there is an easy fix to this -- they are -- it's not fair to the American people and it's absolutely misleading. And what Congress should be focused on is how do we start addressing the root causes of these problems in a way that we can reduce our dependence on foreign sources of energy in ways that we can produce more here at home?

Bret. Read more Comment (0), Email this.

Q Two quick issues. Senate John McCain was touring a Lower Ninth Ward in New Orleans today. He said

MS. PERINO: Well, I didn't see the comments, but from what I know, having been here during the time, President Bush absolutely took responsibility for any failing on the part of the federal government. But at the same time there were problems at the federal, state and -- I'm sorry, at the state and local levels, as well, which they have admitted to. One thing I would point to is that -- it was the largest hurricane to hit us. It hit us hard and it hit us in a spot where we were the most vulnerable; where we had citizens who were living in a place that was really in a bowl, and they suffered the consequences of a terrible flooding.

That said, one of the things that the President asked then Homeland Security Director Fran Townsend to do was an after-action report, of which we did, and the recommendations have all been taken into account and they are being addressed. And we can get you an update, but I think that almost all of the recommendations were accepted and have been addressed by -- across the board, across the federal government. Read more Comment (0), Email this.

MS. PERINO: There was an incident in New Orleans at the leaders' summit in -- where an individual from the Mexican delegation, or a staff member was involved in these Blackberries -- the disappearance of a couple of Blackberries. I don't know how many it was. The matter is under investigation by law enforcement officials and they haven't decided yet what exactly happened, but they're working on it. Read more Comment (0), Email this.

MS. PERINO: I don't know. I'm going to let the investigation take place before I comment on it. Read more Comment (0), Email this.

DANA: I don't -- I'm not -- Read more Comment (0), Email this.

DANA: U.S., yes. Read more Comment (0), Email this.

DANA: I don't know if they were -- I'm not quite sure whose they were, so I don't want to say that, but they were certainly U.S. delegation. Read more Comment (0), Email this.

Q Dana, there seems to be some concern in the Palestinian community that the President does not have

DANA: Well, the first thing he's going to do is he'll be meeting in just 20 minutes with President Abbas of the Palestinian Authority. So we'll be there, and then there's pool at the bottom of their meeting and I think you'll hear from him that he plans to be able to see President Abbas in Sharm el-Sheikh when he's there. Read more Comment (0), Email this.

MS. PERINO: Well, we haven't released the schedule yet so let's wait and see. But the expressed purpose of the trip is to go to the 60th anniversary of the celebration of the start of Israel. And beyond that, let's wait for their meeting to take place. We're still finalizing the schedule; it's not set in stone. Read more Comment (0), Email this.

MS. PERINO: Since the President met yesterday with King Abdullah and he's meeting today with President Abbas and plans to see him in a couple of weeks, no, I don't think that that's a fair characterization. Read more Comment (0), Email this.

MS. PERINO: Well, we certainly think it's had much more halting progress than we would have liked and it's not moving fast enough. But one of the things the President is doing today is listening to President Abbas as he continues to find the spots where we can continue to push. I mean, a lot of this is up to the Palestinians and the Israelis, who committed to trying to work something out by the end of the year. And we are hopeful that we can continue on that path, but we also know we have a heck of a lot of work to do. Read more Comment (0), Email this.

MS. PERINO: Well, I think you have to look at this in terms of a package. And while they have had good conversations early on in the process, then they backtrack a little bit. And we have a very complex situation on the ground and it's going to take a little while. But I wouldn't say that you're going to get this in a piecemeal fashion. I think that you're going to have to take a look at it in total, once we get to a resolution, if we can get one. Read more Comment (0), Email this.

MS. PERINO: Can I just do Goyal -- sorry. Read more Comment (0), Email this.

MS. PERINO: Go ahead, Goyal. Kathleen must have a lunch date. (Laughter.) Read more Comment (0), Email this.

Q Two quick ones. One is that Iran is saying now that they are opening for the inspections for IAEA

MS. PERINO: We'll see. Actions speak louder than words, and we haven't seen a lot of action on their side, but a lot of words. Read more Comment (0), Email this.

MS. PERINO: The terrorist program? Read more Comment (0), Email this.

MS. PERINO: Hello. Three announcements for you, and then I'll go to questions. Today, as you saw, with the concurrence of the Chairman of the Joint Chiefs of Staff, Secretary Gates has recommended, and the President has approved and will nominate, General David Petraeus as the new Commander of Central Command. In addition, he will withdraw the nomination of Lieutenant General Ray Odierno to be the Army Vice Chief of Staff, and nominate him instead to return to Baghdad as the new Multi-National Force Iraq Commander, replacing General Petraeus. And finally, the President will also nominate Lieutenant General Peter Chiarelli as Vice Chief of Staff of the Army.

As Secretary Gates said, he does not anticipate General Petraeus leaving Iraq until late summer or early fall. We expect to move the paperwork on these nominations to the Senate very quickly. Because of the complex nature of getting all of these done, we ask that the Senate move as expeditiously as possible and ask that they act by Memorial Day. One of the reasons that we would ask that is so that not only can the military plan, but so that their families can plan accordingly.

Secretary Gates said that he recommended General Petraeus to the President because he is absolutely confident he's the best man for the job. And as Secretary Gates said, he doesn't know anybody in the United States military better qualified to lead the effort.

On another subject, President Bush, as you have heard him say, is concerned about the number of faith-based schools across the country that are closing their doors. The National Center for Education Statistics reports that nearly 1,200 urban faith-based schools in America closed between 2000 and 2006. More than 400,000 students were affected by these closures.

To address this issue, President Bush announced in the State of the Union address in January that he would convene a White House summit on inner-city children and faith-based schools to help highlight the lack of educational options facing low-income urban students. Tomorrow at the Ronald Reagan International Center here in Washington, D.C., he will bring together educators, clergy, philanthropists and business leaders to highlight the problem and encourage practical solutions to help save these schools.

Yesterday we released a fact sheet on the summit's agenda, and if you have additional questions you can ask anyone in the Press Office.

Finally, recent credit market conditions have raised concerns in the student loan market among parents and some college students, and so the administration has been taking steps to prepare for the approaching student loan peak season of applications in July and August. Today Secretary Spellings, Secretary Paulson and Director Jim Nussle sent a letter to members of Congress urging prompt action to get the Department of Education authority to purchase federal family education loans to better ensure the availability for the upcoming academic year.

The House recently passed a bill to provide this authority, and we urge the Senate to act promptly on the bill. Implementing this authority will take time, so it is imperative to move this legislation without delay if this authority is to be used in the upcoming school year. We do not want to see any students unable to attend universities this year because of the credit crunch, and that's why we are taking appropriate steps now to confront that challenge should it arise.

That's all. Read more Comment (0), Email this.

MS. PERINO: No, I think Secretary Gates said it well. "Soon" is a good, short answer. We are going to be -- continuing to talk to members of Congress. That action will be happening soon, and as soon as we have more from there -- Read more Comment (0), Email this.

MS. PERINO: Will. Read more Comment (0), Email this.

MS. PERINO: Well, let me decline to comment until they decide to talk to members of Congress more -- in an additional fashion, and then we can provide more. I'm not going to be able to say much on it today, and I'm not confirming anything at this briefing in regards to the substance of the question. Read more Comment (0), Email this.

MS. PERINO: And he was right. (Laughter.) Read more Comment (0), Email this.

MS. PERINO: I think that -- let's let the action of "soon" happen and then we'll be able to talk more fully about it.

Roger. Read more Comment (0), Email this.

MS. PERINO: No. You know that we've been asked questions about this since last fall. We have declined to comment, and I'm not able to do so at this time. Read more Comment (0), Email this.

MS. PERINO: It's not appropriate for me at this point, at this moment, to talk about it from here, and so I'll decline to do so until I'm allowed to. Read more Comment (0), Email this.

MS. PERINO: I'd love to be able to answer your question, but if I did, then it would answer the other questions that I've already said I can't answer. And so let's just -- if you guys can just be a little bit patient and let some conversations happen on the Hill, then we'll be able to talk about it more at that time.

Helen. Read more Comment (0), Email this.

Q The President has said publicly several times, in two consecutive news conferences a few months

MS. PERINO: Helen, you're taking liberties with the what the President said. The United States has not, is not torturing any detainees in the global war on terror. And General Hayden, amongst others, have spoken on Capitol Hill fully in this regard, and it is -- I'll leave it where it is. The President is accurate in saying what he said. Read more Comment (0), Email this.

MS. PERINO: Because we do not. Read more Comment (0), Email this.

MS. PERINO: No, that's what I mean, Helen. We've talked about the legal authorities -- Read more Comment (0), Email this.

MS. PERINO: I am saying we did not, yes. Read more Comment (0), Email this.

MS. PERINO: Helen, I think that you're -- again, I think you're conflating some issues and you're misconstruing what the President said. Read more Comment (0), Email this.

MS. PERINO: And what I'm telling you is we have -- torture has not occurred. And you can go back through all the public record. Just make sure -- I would just respectfully ask you not to misconstrue what the President said. Read more Comment (0), Email this.

MS. PERINO: Yes, I am denying that.

Elaine, did you have one? Read more Comment (0), Email this.

MS. PERINO: Sorry, an arms embargo? Read more Comment (0), Email this.

MS. PERINO: No, I'll have to refer you to State Department, but I'll see if I can get more for you later. Read more Comment (0), Email this.

Q Okay. And one on Darfur. U.N. officials yesterday said that the conflict in Darfur is deteriorating

MS. PERINO: Although I'll say that I haven't seen a specific report, but what I can tell you is that I think it was just last week that the President met with his special envoy to Sudan, Rich Williamson, and they discussed at length these issues. And the President talked to him about, how do we get more peacekeepers into the area to help protect the population; what are the strategies to talk -- to do -- continue discussions so that we are facilitating conversations, but also at the same time, taking action to make sure that people are protected and that the killing can stop.

That's something the President is very concerned about, and he and Rich Williamson had a good conversation about it and the President asked him to continue his work. We remain very frustrated and we would like the rest of the world, and the United Nations, to fully back this effort, and to put more pressure on the Sudanese. Read more Comment (0), Email this.

MS. PERINO: I didn't get to see the full press conference, I just saw a little bit at the top, but I understand that Secretary Gates believes that that will be General Petraeus. And that's one of the reasons he said that these changes wouldn't happen until late summer or early fall. And so that assessment will take -- will be done by General Petraeus. But I'm sure he'll be talking with Ray Odierno, as well -- General Odierno, who has spent a lot of time there and helped implement the strategy that has been seeing signs of success. So I think that we'll -- I'll let the Pentagon say for sure, but I believe that's what Secretary Gates was intending to say. Read more Comment (0), Email this.

Q Dana, can you tell us what the President talked to the King about this morning, and whether he

MS. PERINO: I am not able to readout that meeting. The President believes that is a private discussion that he had, private breakfast that he had in the private dining room off of the Oval Office. So I will decline to comment specifically. What I can say is that the President enjoys good relations with many of the leaders in the Middle East. He's pleased that there is engagement and an effort to have input into advancing the peace process.

But as regards to fixed timetables, I don't know if that is -- was an accurate -- that it's accurate that they talked about that this morning or not. I know that there's a statement out there, but it was only the two of them in the room and I'm not going to be able to provide a readout.

Okay, Les. Read more Comment (0), Email this.

Q Thank you, Dana. Two questions. The AP in Kuwait quotes Secretary of State Rice as saying, "The

MS. PERINO: Well, former President Carter is a private citizen, and he made a decision to not comply with what the State Department asked him to do. What I think the President would focus on is, if you go back to what reportedly Hamas said to former President Carter, that they were willing to take these steps for peace, that the very next day, that they went ahead and murdered many people at the Gaza crossing. And I think actions speak louder than words, and we remain very concerned about the situation. That's why Secretary Rice was in the region. Read more Comment (0), Email this.

MS. PERINO: Hi. I have with me a special guest while we are on our way to New Orleans. Paul Conway is the Chief of Staff to the Gulf Coast Coordinator, who the President just announced on Friday is General O'Dell. He is on flight -- General O'Dell is also on flight with us.

Let me give you a quick update on the schedule, and I'm going to turn it over to him for brief opening comments and a few questions about the reconstruction efforts in New Orleans. Remember last Friday, Dan Fisk joined Tony Fratto at the gaggle and gave you a good preview I think of the meetings that the President is going to start having today for the Security and Prosperity Partnership -- the North American Leaders' Summit.

At 12:45 p.m. the President will make remarks in honor of the opening of the Mexican Consulate. That is open to you all. At 1:55 p.m., the President will meet with the President of Mexico at the Windsor Court Hotel -- pool at the bottom -- and then goes into a meeting with the Prime Minister of Canada for a second bilateral at the Windsor Court Hotel -- again, pool at the bottom. And then he will remarks at the United States Chamber of Commerce reception; pool for cameras and open for correspondents. And then he will have dinner with the President of Mexico and the Prime Minister of Canada.

One statement -- I'm sorry, one scheduling update: President Bush will meet with His Majesty King Abdullah II of Jordan at the White House on Wednesday, April 23rd. The President looks forward to discussing with the King bilateral U.S.-Jordanian relations, efforts to resolve the Israeli-Palestinian conflict, the situation in Lebanon and other regional issues.

So let me turn it over to Paul and then I'll clean up -- any cleanup at the end. MR. CONWAY: Good morning. How are you? Read more Comment (0), Email this.

MR. CONWAY: Paul Conway. Nice to meet you. Read more Comment (0), Email this.

MR. CONWAY: A couple of different things. I think as we go down to New Orleans, some of you folks may not have been down there since maybe last August or so, and one of the most important things in the story of New Orleans that you'll see on the ground, and I'd encourage you to talk to local leaders, is the initiative that local leaders have taken to really push their city forward. The coverage that you'll see over the next couple of days for the city of New Orleans and for this event that you're going down to is really strong among the business community, among civic activists. They are willing to tell their story, they're anxious to tell their story about how they're driving change, driving reform, and are the engines beyond the recovery effort. This is both the elected community, elected officials, but most importantly, are non-profit leaders and the business leaders.

Some of the things that you'll see down there on the ground -- you have more restaurants open in New Orleans now than you did before the storm. Schools -- for the schools that are reopening -- schools are open for business. You have enough schools open down there now, commensurate with the population that has returned. You have a tremendous effort going between the school administrators and FEMA for the rebuilding effort and for the flow of money.

Mrs. Bush has been down several different times and has worked through her foundation to make certain that school libraries have books. In the past month alone, she's given half a million dollars through the foundation -- or the foundation has given that money to put books in the schools down there. And you see a lot of other organizations doing the same type of thing.

The convention activity down there is about 80 percent of what it had been pre-Katrina. The tourist rate is about 75 percent of what it had been. Port activity is the same on cargo containers as it had been. There's a small drop in break-bulk cargo as -- an indication of steel imports being down throughout the region.

Several other indicators that you have going on -- on crime. Violent crime is an issue, absolutely. Any loss of life is significant. But what you see down there, which is fairly unusual, is a huge groundswell by grassroots activists and business leaders demanding accountability of local officials and becoming directly involved in courtrooms, coming in and monitoring judges, sentencing, turnaround times, supporting the local police; an effort with federal, state and local law enforcement driven really in part by Jim Letten, the U.S. attorney down there, to make certain there's coordination of information, and coordination at the federal level of resources, such as DEA, FBI, information sharing and that type of thing.

You also see a great demand for accountability of public funds coming not just from elected officials, but from business leaders and others who want to make certain that a message of a new era of business in New Orleans is here. What you see are folks demanding that a city inspector general, who is newly created and newly funded, take a more aggressive role. That city inspector general is similar to the federal inspector general efforts that are underway down there to make certain that federal tax dollars are being used wisely.

You also see a new Governor, Governor Jindal, who is very aggressive on his use of the auditor, and encouragement of state legislative auditor, taking a look at different things. And so in that spirit down there, folks are interested in changing past perceptions of New Orleans, expressing their appreciation to the American taxpayer, expressing appreciation to the international visitors that are bringing revenue this week, but really trying to send a message of, "if it's going to be, it's up to me."

And you see this all across different levels of New Orleans, where before, citizens had not really been that actively involved, a cross-section of the community, you see that much more now in every sector: crime, criminal justice, education -- all these different types of things, and the schools. It's a great story. It's a story that they would like to tell you.

As the Federal Coordinator's Office, part of our job is to make certain that locals who have needs know where to access the federal dollars, and how that interacts with the state, but I have to tell you, one of the things that they really ask us for is to keep putting them forward so they can tell their story. And I would encourage you folks to talk to as many local leaders as you can who will be at these different events. They all have different takes on things, but one thing that you'll come away with is a story of hope, opportunity, and tough persistence to get things done. Read more Comment (0), Email this.

MR. CONWAY: Key challenges going forward are on the levee construction. The President firmly committed to 2011 -- 100-year hurricane protection by 2011. He hardwired that money as emergency funding into his 2009 budget. To keep that on track, one of the challenges will be to make certain that the state and the Corps of Engineers work closely together. Probably the most significant development in this occurred on April 3rd, where you had the state and the Corps of Engineers signing the most historic and largest design-build agreement in the Corps' history -- a huge project, $700 million. It really does kick-start the 2011 deadline -- or objective for getting that done.

That's one, is keeping the levees on track. The second issue is public assistance. This is the flow of FEMA dollars to the state and down into the localities to make certain that infrastructure, critical infrastructure is rebuilt. In the past six months alone, FEMA funding has been flowing in there at a rate of $1.6 billion. But the most significant thing that will be the challenge in this is making certain that local officials and the state and the feds are working together on what are the core priorities -- police and fire, sewer, and other infrastructure needs.

What you're seeing is an agency at FEMA that is revitalized, has a new sense of purpose, and is absolutely dedicated to making certain that they are working closely with the city and the state on issues like police and fire and the schools. The reason why this is an issue is because if you don't have police and fire or crime being addressed, that impacts your insurance and the desire for people to return. Same on the schools -- people want to return to New Orleans, there's no doubt about that, they want their kids to go to school, so keeping the funding flowing is important.

The other challenge that we would see -- and this is one that the General feels quite strongly about -- is making certain that the nation understands that dollars are, in fact, flowing and work is actually beginning. It has been underway for some time. Much of the things that you see on the ground there in terms of what has been done so far is infrastructure, critical infrastructure. So a lot of these things are below the ground. A lot of these things are in massive planning processes, where the city and stakeholders and the state have to work together to sort out what the plans are, design what -- the specs, let the contracts go through the bid process, go through the challenge process, all that type of thing.

But as you look down there, you'll start to see things moving along quite rapidly. That is the General's charge as he comes in. He absolutely wants to make certain that the federal money that has been authorized -- $120 billion -- that that money which is authorized is further obligated, because you have about $90 billion that's obligated, and that it -- more is expended. So the $120 billion -- 82 percent has been obligated, and 64 percent has been expended. Read more Comment (0), Email this.

MR. CONWAY: Eighty-two, 64, yes. So for us, as a federal office, part of our job is driving the dollars down and making certain they actually get in the hands of the folks who are doing the planning, doing the contracts, that type of thing. I'd say those are probably the top three challenges. There are many others, but go ahead and ask if you have more specific sectors. Read more Comment (0), Email this.

Q I just had one follow-up on that. You are familiar with the President's itinerary over the next

MS. PERINO: I think I answered that question for you yesterday, which is that one of the reasons that the President wanted to come to New Orleans is to show everybody by his coming here that New Orleans is now back in a position that it can host a meeting with three world leaders at their annual summit. So he'll be meeting with community leaders. I think there's going to be some schoolchildren that will be at the airport. But it will not be a visit where he's going to tour a lot of the damage. Read more Comment (0), Email this.

MR. CONWAY: I could tell you this. If you go downtown you'll still see some parts that are damaged, and no one is trying to hide that fact. Part of this is tied into the city's master plan, where they're sitting down with community associations and everybody else targeting what are the priorities.

As far the President's activity, probably the most important use of his time while he's down here with the community is actually having these sit-down discussions with community leaders. They are very passionate and very opinionated about what's going on, and they will express that to him. And he has asked for that feedback. He has actively asked for that feedback for the past two years, and he's gotten that directly and also through Chairman Powell. Chairman Powell would be down here all the time, walking the streets. The General is going to be the same way; absolutely dedicated to it.

These community leaders -- and I would encourage you to go out and find them and talk to them, who are participating in these events -- it's a mix of opinion, it's a mix of political affiliation, it's a mix of background. It is a fantastic story. Please do them the service of talking to them. MS. PERINO: Thanks, Paul.

Any other topics? Read more Comment (0), Email this.

MS. PERINO: Well, I think that -- you're referring to what President Carter said about what he was told? I think that what you have to do is look at -- it's possible that that was whispered in his ear in a private meeting. We did not support the private meeting, a meeting with a terrorist organization.

And I think you have to look at the public comments of Hamas, and beyond that, look at the behavior, and just look at what happened over the weekend in terms of the very sophisticated attacks around the border crossings, and the people -- innocent people, who were killed right there. So I take it with a -- we take it with a grain of salt. And we have to look at public comments, and we also have to look at actions. And actions speak louder than words. Read more Comment (0), Email this.

MS. PERINO: I will see what I can do, timing-wise. I'll probably be able to do a little bit of something, yes. Read more Comment (0), Email this.

MS. PERINO: I'll find you. Read more Comment (0), Email this.

MS. PERINO: That's the first I've heard of it. I'll refer you to the State Department. They can answer that for you. Read more Comment (0), Email this.

MS. PERINO: Yes. Read more Comment (0), Email this.

MS. PERINO: It's a to-be-announced restaurant, so it will be a restaurant. Read more Comment (0), Email this.

CHAIRMAN CONNAUGHTON: Great. Thank you very much. This is Jim Connaughton, and I'm here with Paula Dobriansky, the Under Secretary of State for Global Affairs. I just want to give you a recap of what's been occurring here in Paris.

We've had three days of meetings in relation to the major economies process on climate change. Those of you all should be familiar, this is the process the President initiated last year and that the G8 embraced, and involves the 16 countries, plus the EU, making up 17, who are the economies responsible for most of the world's energy use, and most of the world's greenhouse gas emissions.

We had -- the first day was a workshop dedicated to sectoral approaches. This is one of the items that was in the Bali action plan from last September that required some further elucidation, further understanding of how we might move forward cooperatively in advancing greenhouse gas mitigation strategies in key sectors. It involves both governmental and private sector actors, and it was an extremely constructive conversation.

There was a lot of questions about sectoral approaches at this time last year, and in some quarters actually some skepticism about the value of sectoral approaches. We've come full circle and in fact not just the workshop, but the topic of sectoral approaches is one of the featured items of discussion over the last two days with the leaders' representatives as to an element that we'll be including in a leaders' declaration this summer.

So let me turn to the two days of leaders' representative meetings. Our aim was to further the discussion in support of the U.N. process, as to the contribution that the leaders can make this summer in helping to clarify issues and find areas of common perspective in how to accelerate and achieve an agreed outcome by the end of next year in Copenhagen. To remind you, the President and many others have made clear, it's the work we do this year that enables agreement next year. If we do not make progress this year, it is highly unlikely that an agreement could be reached by the end of next year.

We focused on the main topics that we've briefed I think all of you on before. We had a discussion of the long-term goal, how to describe that both qualitatively, in descriptive terms, and also whether we can reach agreement on describing it quantitatively. And then we had an extended discussion on sectors, as I indicated, that I think is going to prove quite fruitful in terms of early action, of being able to move forward, even as the U.N. process is going through negotiations, finding common approaches to moving forward in key sectors among interested countries.

We then talked about mid-term goals and the national plans to back them up and how we are going to be thinking about that going forward. And then we had some extensive briefings today, which were quite informative, on the variety of approaches on financing, with a number of proposed ideas. I would note one of them from Mexico in particular was very consistent with some of the thinking of the United States and of the U.K. and Japan as we work to create the new clean energy technology fund and to remind you President Bush has proposed that the U.S. will contribute $2 billion to that fund, and so we were pleased to see other countries thinking along similar lines.

We also then had a lengthy discussion on forestry. I think there's a -- just a lot of discussion about what level of detail the leaders can go into on forestry because that involves a number of other countries that are not represented in this discussion.

And so it was a very lengthy and illuminating discussion about all the aspects of how to deal with forestry in the context of climate change, and then discussing what's the appropriate piece for leaders in this process to comment on, or really what issues should be reserved for a broader discussion among other U.N. participants.

That's my summary. I guess the overall tone of the meeting -- we met last two months ago in Hawaii, and really that built on the success of Bali. And so folks were in good spirits to really engage in a frank and quite specific way about expressing both what they'd like to see achieved, and also sort of concerns about each other's positions.

And so we continued that this time. And as I indicated, we were able to move to a few topics that we didn't spend as much time on before, such as sectors and finance, and that was important to get to some of those issues so we weren't exclusively focused on long-term goals and mid-term actions.

So the meeting continued in a cooperative spirit. There's a lot of interest in President Bush's proposal, his announced -- I'm sorry, his announced mid-term goal and the strategies by which we'd carry it out. So there was a fair amount of give and take on coming to understand what the speech was about and how we're going to seek to achieve our goals. And I think over the course of two days, there was a lot more awareness of the complexity, but also the levels of ambition in each of the components that we're going to be using to carry that out.

And so after the course of two days, we felt pretty good about the level of understanding and appreciation for the strength of what we're doing.

With that, I'll turn it over to Under Secretary Dobriansky. UNDER SECRETARY DOBRIANSKY: Thank you. I'll just add a few additional points. The major economies meeting -- and it's being held this week -- came just a few weeks after the holding of the U.N. Framework Convention on Climate Change meeting in Bangkok. And I mention that because I think it underscores the fact that this process is very much intended to facilitate and to advance the discussions in the U.N. Framework Convention on Climate Change. And the fact that the Bangkok meeting was just held just a few weeks before, many of the issues fed right directly into the discussion over the last few days here in Paris.

Secondly, I would add on to Jim's comment one more area that also was discussed today, significantly, and that was the area of adaptation. During the Bangkok meeting and before, as part of the Bali road map, adaptation has been an area that has been essentially singled out by many developing countries. I think there was a very robust discussion today about the need for mainstreaming this area, building upon what came out of Bali, and how crucial it is to have an integrated and broad comprehensive approach which addresses development and capacity building in those countries that are in need.

Finally, I would just also say that I think the areas, all of the areas I identified, that Jim -- and I won't restate -- had mentioned to you, all of these are areas out of the Bali road map, and ones which in fact were discussed in Bangkok, and in fact will be discussed in the Bonn meeting in June. June is the time when the next round for the U.N. Framework Convention on Climate Change meeting will take place. I'll stop there. CHAIRMAN CONNAUGHTON: Okay. Great. We're happy to take questions. Read more Comment (0), Email this.

Q Hi. This is a question for Jim. The goals the President laid out on Wednesday weren't in line

CHAIRMAN CONNAUGHTON: Your question is misinformed on both counts. The IPCC did not set out what you described. The IPCC contained a number of scenarios, over 100 different scenarios for the trajectory that would enable us to stabilize greenhouse gases consistent with the framework convention commitment. The items discussed in Bali and elsewhere focused on the single most extreme pathway for getting to that objective, but in the IPCC itself -- and I'm happy to give you the reference -- they laid out dozens of different scenarios for how we can get there. And the trajectory the President laid out is actually quite consistent with a number of them.

Second, the 25 to 40 percent number is the most extreme curve for combating emissions, and that was not agreed in Bali. It was not -- has not been agreed by anybody. It has been proposed by the European Union as an objective for developed countries, but many other developed countries do not support that particular trajectory. The simplest reason why is because you can't get there from here right now. We can hit a trajectory that will keep us on the path that the scientists have described. We just can't do that with that particular trajectory.

So we are focused in the President's plan on goals that are realistic and achievable, and that will deliver the technologies that not only help us reduce emissions in the near term, but will provide a lasting solution as we get toward a lower carbon future. And that's what we're focused on. That's what the President's plan will do. Read more Comment (0), Email this.

CHAIRMAN CONNAUGHTON: Actually, one of the focuses of the major economies meeting is to recognize that even if the U.S. cut its emissions to zero tomorrow, it would have no meaningful effect on the current temperature trajectory in the absence of meaningful action by all the major economies who are responsible for most of the world's emissions.

And so what we all need to do is take realistic steps, consistent with our national circumstances, to address our emissions in the near-term, in the mid-term and then over the long-term.

I would observe under the IPCC there are some very solid scenarios that recognize that we will need to peak our emissions within 10 to 30 years -- it depends which scenario you're looking at. The President's commitment that the U.S. emissions will peak at a level substantially below where they would otherwise be is very consistent with that trajectory, but it also requires all the other countries to aim toward that end, as well.

I would also want to make clear when you ask environmentally. The President's new economy-wide mid-term goal will prevent billions of tons of greenhouse gases from going to the atmosphere between now and 2025, and it will put us solidly on the path to significant emission reductions after that. So make no bones about it, this will have significant benefits in reducing greenhouse gases, significant benefits as we transition our economy to the use of cleaner energy systems.

Next question, please. Read more Comment (0), Email this.

Q Thanks for holding the briefing. I guess my question relates to what input you heard today from

CHAIRMAN CONNAUGHTON: Okay, let me deal with the second part first, if that's all right.

You know, we really do see these pieces fitting question as your question implies. In Bali, all the countries agreed that deep cuts are going to be necessary. So that was a step forward among all the participants, in recognition of the information from the IPCC.

And so as we look quantitatively, there's still a lot of questions about the current proposal, which is cutting emissions in half by 2050. And those discussions really center on two things. One is just feasibility. If you look at the current sort of stock of energy systems around the world today, a number of countries -- and in particular some key developing countries -- have just been raising the practical question of, is that particular level of ambition feasible by 2050?

There is then a second set of issues that I think you're discussing, which is, which countries proceed on what trajectory. There continues to be a sense that the developed countries should lead, and they should. But there still remains a sensible how -- what's the level of effort that the major developing countries should be undertaking along with the rest of us. And sometimes this gets couched, you know, as a "we will proceed and they will do nothing" -- which is not correct.

We have learned, and I think this major economies process has been a catalyst for the major developing countries to get quite aggressive about creating plans. And I think this is an area worth it for all of you to look into. There is now Cabinet-level action underway in South Africa, in Mexico, in South Korea, in China, and in India. All of this activity -- unprecedented, actually, given past history on this issue. And that's something we welcome.

And so we're still struggling between what's actually going on, and then countries positioning for their U.N. negotiations. And I think that is one of the challenges of the major economies process -- can the leaders feel comfortable enough saying what they're actually going to be doing, and reflect on those commitments, or, you know, how much of this will be affected by maintaining negotiating positions from the U.N. process. And that's something we'll sort through.

On the per capita approach, that's still an item in discussion. From the U.S. perspective, all of these metrics matter. Absolute emission reductions matter. Your improvements of intensity --

(LONG DROP IN AUDIO FEED) CHAIRMAN CONNAUGHTON: -- budget commitment to the program design, but if I had to single some countries out, Canada is ahead, the U.K., Germany. And I think from that we're going to be able to build a more coherent sector-based strategy on carbon capture and storage, and that would be one of the -- we would hope that that would come together over the course of this year, especially -- we've gotten advice from MIT and other research bodies, and a lot of other countries are looking at that and designing their own programs.

We need all countries to invest in this if we want to move fast. UNDER SECRETARY DOBRIANSKY: Andy, I was going to just add something very briefly, just on that last point, when we held the high-level dialogue on clean energy, climate and sustainable development with the commission. Actually this was an area that we did talk about rather extensively, because your question, you had asked, you know, are there any joint projects in the offing. I would say that at least in terms of dialogue, it's been one area that has loomed as very, very large in the recent formal conversations. CHAIRMAN CONNAUGHTON: By recent accounts, it seems that the European Commission is struggling to find the resources for this, and I heard it from a very senior official that they weren't looking at resourcing it until 2012 or 2013. Obviously we hope they can correct that so that we can align our strategies and get real projects on the ground.

Okay, next question, please. Read more Comment (0), Email this.

Q Thank you, Mr. Chairman. I had a quick question about the link between what you're doing in Paris

CHAIRMAN CONNAUGHTON: The President indicated that there's some very significant -- there's a significant discussion remaining on climate change that really requires legislators to debate and make decisions about. And so, specifically on that, I think there's going to be some further discussions with the Hill, and, as in the past, will continue to be quite constructive. We've been providing a lot of technical assistance to all the different members on the Hill who have their various climate change proposals.

But, to come back to the start of your question, however, I guess the overall answer is, no, we are pursuing a very solid and comprehensive domestic strategy, and we are making that strategy our contribution, an advanced contribution, in support of the architecture of the current discussion for a leaders' declaration, and in support of the ideas that we said we would consider as part of the Bali action plan.

So, just to remind some of you who may not be aware, I'd direct you to the President's speech. The Congress is still catching up with the fact that they passed five major new mandates on climate last year, in a bipartisan way, with some of the most aggressive not just goals, but aggressive market-based programs to achieving those goals. And, in fact, many of these new programs are as aggressive, and a couple of them are much more aggressive than what's happening here in Europe.

So as we continue to understand each other's policies and consider their comparability, that's going to be part of the discussion. So we look forward to a constructive engagement on the Hill. It's a necessary engagement, given the reasons the President described, and we'll just have to work through the details of that. Read more Comment (0), Email this.

Q Can I just ask on the -- just one more question on any potential parallels between the domestic

CHAIRMAN CONNAUGHTON: Well, actually I think the long-term goal, stated in quantitative terms, is still a challenging discussion. The G8 has committed to seriously consider 50 percent, but there are many countries around the table who still are raising significant questions about that. So I don't know how that's going to come out.

The domestic piece though, I would -- I don't think you've characterized the legislative positions accurately when you say there's a consensus. If you've done the 500-plus vote count on that, I'd be curious to know. I've done a lot of my own reflection on that, and I have a good sense for the Hill -- there is a wide division of perspective on the level of ambition.

What the President did was try to squarely describe where we understand the peak point to be, and it's going to be in that 2025 period -- and for two very straightforward reasons: One is to get emissions to peak in the power generation sector, you need nuclear plants, you need carbon captured storage, and you need renewable power on the gigawatt scale. It will take us 10 to 15 years to get to the point where that's going to be possible, and it's -- that's just straight up math and permitting and getting plants built and financed.

On the transportation side, to get us into a absolute decline mode, which will occur sometime around 2025, to get us there we have to shift to second-generation cellulosic fuels, because those have the lower carbon profile that displaces the CO emissions associated from gasoline use; and we have to use more electricity in our vehicle mix, and that's going to require the very same low-carbon power plants that I just described.

We cannot as a country magically put all that out there in the next five to 10 years, but what the President's strategy has done is ensure that that's going to occur at the time that we've determined. If somebody has other views on making that come faster, we welcome that debate. It's going to require -- I mean, we still have non-market obstacles that the President highlighted in terms of resistance to building new nuclear power plants, political resistance to new transmission lines that makes gigawatt renewables possible. And now you're hearing a fascinating resistance to biofuels, when everybody knows biofuels are an important part of this solution. And yet people are trying to erect more barriers to biofuels rather than remove them.

So that's the reality, and the President's goal in his speech was to move us beyond rhetoric into reality. And I hope (inaudible) provided service in that regard. Read more Comment (0), Email this.

CHAIRMAN CONNAUGHTON: Hey, Dean, how are you doing? Read more Comment (0), Email this.

MR. FRATTO: Sorry to make you wait on this beautiful Friday afternoon. The reason for waiting is because we were going to get this picture up here. Let's see. Now? Now? One more. "I'm going to get Pete Seat." (Laughter.) Well, technical difficulties in the White House Press Briefing Room. We'll see if we can get it working -- there we go, all right. (Applause.)

This is a picture of the President who -- on March 17th, the President taped a surprise "good luck" video for one of our soldiers in Iraq, who is back here and a contestant on the NBC game show "Deal or No Deal" -- Captain Joe Kobes. The show's producers contacted the White House after learning from Captain Kobes that the President is one of his heroes. Captain Kobes is an Army transportation officer who has served three tours of duty in Iraq, one from March 2004 to March 2005, and then two back-to-back deployments which stretched from November 2006 to July 2007. He received a Purple Heart for injuries sustained after his truck was blown up in 2004. He volunteered for the last two deployments and has just re-signed with the Army for three more years. Captain Kobes is 29 years old.

The show will air on Monday, April 21st. The President thanked him for his service to his country and for serving in Iraq and wished him good luck. And you'll have to watch the show to see how Captain Kobes did. Read more Comment (0), Email this.

MR. FRATTO: I don't, no. One of the reasons we're showing it is NBC will be previewing the clip over the weekend with the President, so you'll be able to see the clip. And it really is actually an emotional moment for Captain Kobes and the family. So we look forward to that -- and we all wish him well, as well. Read more Comment (0), Email this.

MR. FRATTO: K-o-b-e-s, Joseph. Read more Comment (0), Email this.

MR. FRATTO: You know what, I don't have it here. I think I had something on that, but I don't have it on my note -- if we can find out, we'll get it. We'll try to get those facts out for you.*

Two other things that I wanted to mention at the gaggle this morning and didn't get to -- you might have seen early this morning U.S. Trade Representative Susan Schwab announced the reopening of -- an agreement to reopen the beef market in Korea -- obviously timely with President Lee's visit with President Bush today up at Camp David. Read more Comment (0), Email this.

MR. FRATTO: I hope it is beef that's for dinner tonight. This agreement includes all beef products, from cattle, all ages. It will ensure safe, portable, high-quality American beef on the table of Koreans, as had been previously the case. Korea before -- Korea had banned American beef and -- in response to Mad Cow -- some Mad Cow disease issues, and we have been trying to work out our arrangement on beef for some time. This is a major sticking point in Congress's consideration of a South Korea trade agreement. Before they had done this Korea was America's third largest export destination for beef. So it is a major agreement and very important to our ranchers.

The other announcement was Department of Homeland Security Secretary Michael Chertoff announced that he and the Korean Minister of Foreign Affairs signed a memorandum of understanding regarding the visa waiver program. They employ some additional security enhancements in the agreement, and it puts Korea on a path towards visa-free travel to the U.S., and potential designation as a visa-waiver program member as early as later this year.

So these are two important agreements with a critical ally of the United States and a partner in anti-terrorism efforts, an important trading partner, an important partner in the six-party talks to denuclearize the Korean Peninsula.

And with that, I'll take your questions. Yes, Wendell. Read more Comment (0), Email this.

MR. FRATTO: At this point, it is only younger beef, beef of 30 months or less. There had previously been some agreements on boneless beef, but this will be expanded to include all beef and all beef products. Still younger beef at this point, but with a plan to get to all beef products. Read more Comment (0), Email this.

Q And on the Colombia free trade agreement, you guys have often said that Colombia products already

MR. FRATTO: Well, it's interesting -- I was thinking about that question when -- a similar question was asked of Dana the other day at the briefing, and that is there is this -- there's implied in the question that you only benefit from exports and you don't benefit from imports. And the truth is, is that every country in a trade relationship benefits both from exports and imports. The benefit you get from imports is the ability to buy the best products at the least cost price, wherever it's produced in the world. And that's a benefit to consumers. Some of those products are products that you lack in your own economy. And in the case of a country like Colombia, it might be financial services or legal services, or manufacturing products that we make here that, today, their consumers must pay more to get the higher-quality American products in those areas.

So you have to remember that two-way trade is important; it's a benefit to both countries. You don't benefit just from exports. I know we talk a lot about the importance and strength of exports to our economy, but imports are important also.

Yes, Toby. Read more Comment (0), Email this.

MR. FRATTO: I think it's -- look, I think it's probably too early to say that. I think a lot of the members up there who follow trade understand how important this agreement is. It is with one of our largest trading partners. And they also understand the importance of our relationship from a diplomatic and security standpoint with South Korea.

Trade agreements are never easy; they're always hard. I think some people think back to sometime in the past when getting a trade agreement was easy, and none of them have ever been easy. And I remember in the '90s, the Vice President of the United States having to go on national television and debate Ross Perot over a trade agreement. These things are always difficult, and the best we can do is to continue to educate people about the benefits of the agreements and benefits for trade.

The Colombia deal, as far as we're concerned, ought to be a slam-dunk. From an economic standpoint, a lot of the benefits are on our side, and from a security standpoint, they absolutely are also. And the South Korea deal, as well. We also have Panama, which also is an important deal we're going to continue to work with, and continue to work with Congress to try to get those deals before them.

Did you have a follow, Toby? Read more Comment (0), Email this.

MR. FRATTO: It will run the gamut. I mean, they're certainly going to talk about trade. You can expect them to talk about North Korea and the six-party talks and what progress they're seeing there. But, yes, you can expect all of that.

John. Read more Comment (0), Email this.

Q Tony, a GAO report released on Capitol Hill yesterday concluded that the U.S. doesn't have a comprehensive

MR. FRATTO: I know that DOD has talked about this a little bit. There's no question there's more to be done in that region. I think everyone who has spoken to that issue of the borders has talked about what a difficult challenge it is, and we have more work to do there and we need to do it. Read more Comment (0), Email this.

MR. FRATTO: I'm not aware of that. I would refer you to DOD and see if there's more on that.

Roger. Read more Comment (0), Email this.

MR. FRATTO: I don't know if that has -- is ready. We did close the agreement last year, so it should be ready. You may remember, as we talked about Colombia we spent a lot of time talking with Congress of how and when to deliver it. USTR will be having similar conversations with -- Read more Comment (0), Email this.

MR. FRATTO: They won't be starting talks; talks have been ongoing for a long time. They'll continue and we'll see if we can bring it up in an accommodative way. Read more Comment (0), Email this.

MR. FRATTO: Oh, yes, I think we'd like to have all of our trade agreements submitted. Read more Comment (0), Email this.

MR. FRATTO: Yes.

Yes, Mark. Read more Comment (0), Email this.

Q Back to Korea and the nuclear issue. As I'm sure you're aware, a lot of conservatives are really

MR. FRATTO: No, I don't think there's any lowering the bar. Secretary Rice spoke about this a great deal yesterday. There will be an accounting and there will be verification. And the verification will be rigorous, and that is what's required at this part of the process and I think that's what we will achieve. But we're going to continue to monitor and verify and make sure that the North Koreans are living up to their obligations and that all of us -- the rest of the five parties are living up to our obligations also.

But the goal is an accounting of verifiable -- a system to verify compliance and the ultimate goal of the denuclearization of the Peninsula. That's the goal and that's what we're all working towards. Read more Comment (0), Email this.

MR. FRATTO: No, I think Secretary Rice answered that question yesterday. I don't think I have a whole lot more to add to what she said yesterday. And of course, the President I'm sure will have a chance to address it tomorrow at the presser.

Goyal. Read more Comment (0), Email this.

Q Two quick questions, Tony. One, as far as hunger around the globe is a major question and now

MR. FRATTO: Well, I can tell you, first, what we are doing -- and you saw what we announced last week, which was an additional $200 million worth of food aid. And, just as a reminder, again, the United States consistently, year over year, provides 45 to 50 percent of total emergency food assistance across the world. So we take that very seriously, and we're -- it's an important mission of USAID and in cooperation with the Agriculture Department. So it's critical. We think of it as saving lives, and it does save lives? We also have a request for an additional $350 million of food assistance that we would like to see out there.

The problem of global food production and getting it to the right places is much more complicated than pointing just to energy or any one issue out there. There are lots of factors that affect the price of food. Some of it is the result of -- when we talk about increasing demand, the front end of that story is a good news story. It is that more people are able to eat more because they have more income. And it obviously causes problems on the back end. They're also changing the kinds of food they eat so that you see more people eating beef, for example, and pork. And you need to feed beef cattle and pork to produce them, and that causes additional strain on grain supplies everywhere, and you see weather problems as a factor.

So it's complicated. We want to make sure that we are assisting countries that are in the most need and getting them what they need. We appreciate the call from the World Bank and Josette Sheeran at the World Food Program. They're working very hard and we want to work with them and make sure that they're getting what they need for this year. Read more Comment (0), Email this.

Q As far as this GAO report is concerned, according to a report, almost $5.5 billion was given for

MR. FRATTO: I think we expect to continue to work in cooperation with the entire government of Pakistan to get after terrorism in the FATA region and the border. And I think everyone is committed to that goal.

Les. Read more Comment (0), Email this.

MR. FRATTO: Briefly summarize? No, I don't think that's possible, and you're not going to have immediate short-term solutions on things like gasoline prices. It took us a long time to get to a place where the price of gasoline is where it is. It's going to take us a long time to get off of oil as much as possible. We've already taken steps through the energy act in terms of conservation and increasing CAFE standards, and also replacing oil with alternative fuels. And so that will continue and we hope it does bring down the price of gasoline. We'd also like to see increased production from oil producers. Read more Comment (0), Email this.

MR. FRATTO: Thank you. Read more Comment (0), Email this.

MR. FRATTO: Do I get a star for that? (Laughter.) Read more Comment (0), Email this.

MR. FRATTO: I don't think I have any reaction to that at all, Les. I'll stay out -- Read more Comment (0), Email this.

MR. FRATTO: Not in the least, no.

Olivier. Read more Comment (0), Email this.

MR. FRATTO: I haven't seen any reporting out of that meeting. We're obviously aware that he did, and I think we made our feelings known going in as to whether we -- it was something we thought was wise or not, and I think we fell on the side of not. Read more Comment (0), Email this.

MR. FRATTO: That the situation in Tibet is an international -- I don't think we try to characterize it as a national issue or an international issue. I don't think that's the point of it. The point of it is that there are lots of places in the world where we have an interest in the human rights of the citizens who live there, and we express our interest and our concern in all of those places and we want to see the conditions improve.

Did you finish? (Laughter.) Let me take just that one last question on Korea. Read more Comment (0), Email this.

MR. FRATTO: Well, you hesitated. Read more Comment (0), Email this.

MR. FISK: Good morning. On Monday and Tuesday of next week, April 21st and 22nd, in New Orleans, the President will host President Felipe Calderón of Mexico and Prime Minister Stephen Harper of Canada for the North American Leaders' Summit. This will be the fourth time the leaders of the United States, Canada and Mexico have met specifically to discuss the common challenges North America faces, and ways we can advance our common interests. This will also be an opportunity for leaders to review our cooperation under the Security and Prosperity Partnership, known as SPP, and to provide direction for activities under the SPP for the year ahead.

The summit further will allow the three leaders to discuss a number of other questions, from global issues to events in the Western Hemisphere, including -- we anticipate the situation with the free trade agreement with Colombia and also the free trade agreement with Panama.

Let me give you a little bit -- a sense of the schedule that the President will have. Again, he arrives Monday morning, the 21st. Upon arrival in New Orleans the President will be greeted by Governor Jindal and Mayor Nagin. He then -- the President then proceeds to join President Calderón at the opening of the Mexican consulate in New Orleans. This is an invitation extended by President Calderón to President Bush. The two Presidents will make brief remarks at that event.

Following the consulate opening, the President and President Calderón will hold their formal bilateral meeting. The President then meets with Prime Minister Harper for their bilateral meeting.

Monday evening the three leaders will have a working dinner. There is no set agenda for this dinner. Let me put it in another way: The leaders will set the agenda for the discussion at the dinner. And so you're aware, prior to the dinner, or on the way to the dinner, the President will drop by a reception hosted by the U.S. Chamber of Commerce, including a number of businessmen and, again, local officials and representatives. The President will make brief remarks at the reception. So that's Monday.

On Tuesday, the 22nd, the first substantive event of that day will be a meeting of the three leaders with representatives of the private sectors from the three countries. This is something that started in 2006 at the Cancun meeting, when the private sector created something called the North American Competitiveness Council. This is one means by which the private sector can offer recommendations and lessons learned to the three governments as we pursue initiatives -- North American initiatives.

Again, this meeting will follow the format that we've had at both Cancun in 2006, and the meeting last year in Canada, in Montebello.

After the meeting with the North American Competitiveness Council the three leaders meet with -- rejoin their official delegations for the meeting to focus on the North American agenda. This is, I guess, what can be described more formally as the North American Summit meeting. At this meeting the leaders will receive a report from ministers and cabinet secretaries on progress since the August 2007 summit in Canada, and then they will discuss and give direction on priorities for the year ahead.

After the morning's meetings, the three leaders participate in a joint press availability. And then the summit closes with a commemoration of Earth Day -- April 22nd being Earth Day -- and the three leaders will plant a tree in New Orleans Lafayette Square.

What are we seeking to achieve from this meeting in New Orleans and this being the fourth time that the leaders -- North American leaders have met? I guess let me put this in the overall terms, and they're somewhat, I guess, at a macro level. What we would like to achieve is we'd like to enhance and strengthen an already dynamic and strong relationship, to deepen the cooperation by building on the common interests of our citizens to be prosperous and secure. We believe that at its foundations, the North American relationship works; we believe it works well for all three countries, but we also believe we can make it work better.

Let me give you a little bit of a sense of the magnitude and vibrancy of our interaction. This is what I called kind of "North America 101." A lot of Americans focus on the fact that Mexico and Canada are geographic neighbors and don't have a lot more context than that. But, again, let me try to put this in some perspective. Canada is our first largest trading partner in the world; Mexico is our third largest partner.

In terms of three-way trade, as of last year, it was $930 billion -- that's annually, again, in three-way trade. That comes to about $2.5 billion in trade in goods and services on a daily basis. We expect that number to reach the $1 trillion mark by the end of this year. To put this in a different context, a global context, three-way trade between the North American nations is 30 percent of the total global trade of the United States.

Canada and Mexico are our largest sources of imported energy. Canada, by the way, is our largest source of foreign oil; again, something that most people don't focus on. There are roughly 1 million border crossings on a daily basis. If you look at it on annualized terms, 65 million cars, 7 million trucks, 1.5 railroad cars cross the borders annually. There are somewhere around 32,000 Canadians and Mexicans enrolled in U.S. universities. Eleven thousand Americans are studying in Canada and Mexico. And this is only a very small snapshot of the vast social, family, commercial and cultural ties that exist between us.

I give you this context because we recognize going into this meeting that many of the initiatives that are discussed, and what I'm going to present to you here, when you look at them by themselves, they are not going to grab headlines. You're not going to rush out of this room and say that something on intellectual property has been achieved. What the reality is, is that when you bring all these initiatives together in their totality, they have a significant and a potential significant impact on our economy, on us as consumers, and in our position in the world, and also in terms of our security.

So let me just run through quickly what the priorities are and where the leaders have been focused. And this is in part what came out of Montebello last year and what we anticipate the leaders to discuss in terms of priorities in the year ahead.

The five priorities are, first, enhancing global competitiveness; second, smart and secure borders; third, sustainable energy and environment; fourth is safe food and products; and the fifth is emergency management and preparedness.

We turn again to enhancing global competitiveness, and I'll make reference to two issues here. One is regulatory cooperation. In terms of key accomplishments, we have reached agreement with Mexico and Canada on a regulatory cooperation framework. In effect, we've agreed on common regulatory principles, how to move forward in our respective regulatory structures. Again, very respectful that we have distinct legal systems. We've also been able, though, to move ahead on joint regulatory decisions on pesticide approvals so that you don't have to have three approvals in three different countries.

Priority we expect the leaders to talk about in New Orleans is what more can we do, in terms of the regulatory structure that impacts the automobile sector. And this gets to, frankly, a dollars and cents impact for the average consumer in terms of buying automobiles.

A second area in the competitiveness -- under the competitiveness category is intellectual property rights and how the three countries can enhance their protection regimes. What we have achieved so far is better coordination in terms of enforcement on seizing fake products. We also have a pilot program to work amongst the three of us on how we deal with pirated goods coming from outside North America. In terms of what we look at -- are looking at for the year ahead, is what can be done in the arena of strengthened enforcement. This is an issue that everyone agrees needs more work, and the general infra system is to move a more proactive coordination and cooperation.

The second priority is smart and secure borders. Again, this gets to be an issue of real dollars and cents. To give you an idea of the magnitude of this, the Detroit-Windsor crossing accounts for about one-fourth of all trade between the United States and Canada. And if you compare that with, for instance, our global trade, there is more commerce along that one corridor than there are in terms of what we import from Japan -- so to give you again the magnitude of this, so things like ports of entry, the infrastructure. To give you again another example, the Detroit-Windsor bridge was built in 1929. It was -- it's four lanes and was built for traffic in the 1930s. The traffic has increased threefold since then.

So again, I understand unless you're writing for a Detroit newspaper or media, the Detroit-Windsor crossing isn't necessarily a big deal. But if you're a businessman, or frankly for all of us who are consumers, it has a potential impact because if we can't get those crossings to be more effective and efficient, we all pay.

In terms of priorities for the coming year, we're looking at how we can better coordinate amongst the three countries our long-term infrastructure plans and network -- transportation networks coordination. We do want to look at what more we can do at the Detroit-Windsor crossing. We also want to see what we can do along one of the crossings -- the San Diego port of entry, along the Southwest border.

And then the other thing that we are focused on are what are known as trusted traveler programs, that is how you give people identification and you give cargo some kind of security screening so that it can move more quickly across the border.

A third area is energy and environment, and this one we have been able to harmonize energy efficiency standards for freezers, refrigerators and room air conditioners. Again, I know that that's not necessarily something that you would expect leaders of three countries to talk about, but if you have to have energy standards and build three separate refrigerators, and again you look at a market of 450 million people, that has potential consequences there.

We've also talked about, in the past, about other energy efficient standards in other areas. This time we expect the leaders to spend some time talking about carbon capture and storage to mitigate greenhouse gas emissions, and also to see what we can do to better coordinate electricity networks. Again, a major source of electrical power for the United States actually comes from Canada and Mexico.

The fourth agenda item is safe food and products. On this we've spent a lot of time for the past eight months basically trying to determine how you get three governments with three different systems to have a baseline from which to have a conversation. We've made progress on that. We have finalized a number of agreements to exchange information, and now we're looking at how we enhance those and expand those, but also how do we deal with a situation in which we have a recall of a product in one country, and then how do the other two respond, and what's a way to coordinate that. Again, this gets both to an issue of the safety of products, but also in terms of facilitation of commerce.

And the fifth and final area is emergency management, and this is a very simple one. This has been a constant one because the fact of the matter is, natural disasters don't respect borders. Sometimes if there's accidents they don't respect the borders. And right now that -- we don't necessarily have in place, as three governments, as three federal governments, the protocols that allow us to actually operate across the border. There are certain restrictions and structures in which somehow even though you may have been hit by a storm, or there may be some kind of industrial accident, your interests as a country ends at the border. And to a certain extent, that is very artificial, and that is also a case in which we think that is just good government, and in the benefit and the interests of all three countries.

So did not mean to inundate you all with details. I did -- hopefully will warn you that some of these are, I would say, in the weeds. But again part of the totality of the relationship goes to how do you continue to build on a trillion-dollar relationship in which you have literally millions of people moving on a daily basis.

So I'm happy to take questions. Read more Comment (0), Email this.

Q There are a lot of questions from the campaign trail of -- particularly from the Democrats --

MR. FISK: Well, I won't try to speculate on exactly how it will be discussed. We are anticipating that it will be discussed. We are aware that some of the statements that have been made here have made actually bigger headlines in Canada and Mexico than they have here. And we expect the leaders to talk about it. We think NAFTA works. We think the record of its past 14 years shows that it works.

When the three-way relationship started as of -- in 1994, if you just look at the trade figures, there were roughly $290 billion in three-way trade. I mean, again, we're talking about a trillion-dollar -- coming up on a trillion-dollar trading relationship in the 14 years of NAFTA.

So, again, we want to find ways to, frankly, convince the American people from our perspective, first and foremost, that this is an arrangement that's worked for us and it's also worked for our neighbors. It's been a win-win situation. Read more Comment (0), Email this.

MR. FISK: There's nothing broken. Why fix a success? Read more Comment (0), Email this.

Q Just two questions related to border security. Do you expect the Mexican trucking issue to come

MR. FISK: The short answer on both of those is, yes. I expect that -- we do anticipate that President Calderón will raise the Mexican trucking pilot program. Again, I'm not going to go into or won't speculate on how exactly, but it's my understanding, from our interactions with the Mexicans, that they were pleased with that. We are fulfilling one of our NAFTA obligations, and the President is fulfilling one of his commitments that he actually campaigned on, on that issue.

On Merida, we do expect that conversation to come up. It is on our agenda, as well as, I understand it, on President Calderón's agenda. We think this is something that is, again, in the interest of both countries. President Calderón has taken a number of courageous actions to deal with the drug violence and the drug cartels in Mexico.

They are under -- parts of Mexico, frankly, have been under siege from the drug-trafficking cartels. We think he's shown not only the political will but he's put actions behind that. For instance, we've had record drug seizures, we've had record seizures of cash involved in the drug trade. We've had 83 extraditions. In fact, I think one of the best statistics on the Merida initiative and why we hope Congress passes it as we submitted -- and we hope they approve it quickly -- is the fact that, according to what I've seen from drug enforcement agencies, that over the last 14 months, which tracks almost perfectly with the 15 months of President Calderón's presidency, we have seen the availability of cocaine on American streets go down and the price of cocaine go up.

And we think that there is a correlation between what President Calderón is doing to fight drugs to make it more difficult for the cartels to get their product to the United States. And we think there's every reason why we should be supporting them. And, again, we hope the President -- the U.S. Congress supports the initiative to do so. Read more Comment (0), Email this.