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MS. PERINO: Hello. Happy Friday. Today Senator John McCain announced his vice presidential pick, Governor Sarah Palin of Alaska. The White House is energized and excited by this choice. President Bush called Governor Palin just before his meeting with President Kikwete of Tanzania. He said that the McCain-Palin ticket is very strong. He wished her good luck, told her that she will be a fantastic vice presidential candidate, and that he is looking forward to a great victory in November.

Also, President Bush today just issued an emergency declaration for the state of Louisiana. This declaration provides for federal aid to supplement the state and local preparations for tropical storm -- or soon to be hurricane Gustav. FEMA is authorized to provide resources, equipment, and direct federal assistance. Secretary Chertoff and Administrator Paulison have been in the Gulf Coast region meeting with state and local officials about the preparations, and today Secretary Chertoff will be traveling to Mississippi and will meet Governor Barbour about Mississippi's planning for the potential landfall of the storm.

And that's all I have. Read more Comment (0), Email this.

MS. PERINO: We have no changes to the schedule, and we'll let you know if there are any. Read more Comment (0), Email this.

MS. PERINO: Sure, happy to. The President is looking forward to the honor of speaking at the Republican Convention on Monday night. The speech expresses gratitude. The President will thank his family, his administration, and most of all, the friends, supporters and volunteers in the convention hall who have supported him and the Republican agenda for these past eight years.

The speech reviews the major issues facing the country, from terrorism and war to the economy and the direction of our culture. Above all, the speech reflects on the role of the presidency and the qualities that are demanded by the job, and makes the case that John McCain is the best qualified to be our next leader and commander-in-chief. In particular, it highlights McCain's unique judgment, perspective, and experience to deal with the unexpected, to stand firm on his convictions, put the country above himself, and make hard decisions necessary to protect the American people.

The speech rallies Republicans to have confidence in America's future and to do everything they can to elect John McCain to the presidency.

A couple of things that the speech does not do: Do not expect this speech to define the President's legacy. This is not an opportunity to recap accomplishments of the past seven and a half years. It will not serve as a farewell to the American people, and it certainly will not attack Barack Obama. Read more Comment (0), Email this.

MS. PERINO: Because he's got class. Read more Comment (0), Email this.

MS. PERINO: But this President knows better than almost any politician in America what it's like to face criticism. He watched his dad as vice presidential candidate for two terms go through that, and then when his dad ran for President, he saw it again, and then in his own campaigns, the two national elections. He knows what it's like in high political season, and he's not going to respond to every attack.

But some of the attacks are just out-and-out false; for example, suggesting that the Bush administration hasn't invested in alternative or renewable energies. Everybody in this room knows that that's not true. So we're in high political season. We're not going to let it get to us. We're going to focus on the big picture. And most importantly, President Bush will be working to make sure that John McCain is the next President of the United States. Read more Comment (0), Email this.

MS. PERINO: I think that's it. We're just going to be giving the speech, and then in the tradition of past Presidents, he will spend the rest of the week, we call it down, and he'll be at Camp David for the week. So we get back from Minnesota and go straight to Camp. Read more Comment (0), Email this.

Q Okay. And one other question about -- back on the hurricane. Obviously things will be developing

MS. PERINO: At the moment, nothing to be -- for a presidential event that would be open to the public. But he will be getting an update in the morning. He's gotten -- he had, I think, two today already. And when Chertoff and Paulison have updates they pass them either through senior staff or directly to the President. Secretary Chertoff spoke to the President yesterday by phone.

Look, we're taking the storm very seriously. Thankfully, so are the leaders of the states that could be impacted, and they seem to be well prepared. We certainly applaud the state leaders for all that they've done to get their regions organized, to provide for early evacuation for people with special needs who might need it. So everything seems like it's on track. But it's a very serious storm and so we are taking it seriously. And things could change in a moment's notice. Right now the storm is scheduled to land Tuesday afternoon, but we've seen that change over the hour. Read more Comment (0), Email this.

MS. PERINO: All I know is, not right now. (Laughter.) I don't know, Wendell. It's hard to say. It's speculation and if I were to guess I'd probably be wrong. Read more Comment (0), Email this.

MS. PERINO: No, I would look to -- you all can fact-check it yourselves. We're not going to. I'm not going to get into the -- into a back-and-forth with the Democratic presidential candidate, who had a really good convention and -- but we do recognize that this President has been unfairly attacked across the board by many Democrats for quite a while. But certainly as we get into this last eight weeks of the presidential campaign, tensions will probably flare, but this President has a lot of class, he's very gracious, and he also is very focused. And so nothing gets him off his game.

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

MS. PERINO: Well, I'm certainly not surprised. And we continue to be dismayed that Russia has not fulfilled all of its requirements in the peace agreement that it signed, the one that Sarkozy sent that was a six-point plan. So we are focused on trying to make that agreement -- or get that agreement fulfilled, so those obligations to be fulfilled, and for the Russian military to be back into its posture that it was in on -- before the hostilities began on August 7th.

Georgia is going to need the support of the world. There is unison when you look at the reaction about a country's sovereignty, its independence, and its territorial integrity. And you've seen across the board, countries coming forward to announce their support for Georgia, and condemning the actions of Russia. And the results of that are that Russia is increasingly isolated, and will bear the consequences of that isolation unless they fulfill that agreement and then make amends. Read more Comment (0), Email this.

Q There is reporting, though, that Secretary Rice is bringing "clarifications" to the cease-fire

MS. PERINO: I have not heard that and I don't know if it's accurate, but we'll check on it, or refer you to State.

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

Q On the same topic, South Ossetians' parliamentary speaker said that in meetings between President

MS. PERINO: Again, I don't find any of this surprising, given the actions of the past three weeks. But South Ossetia and Abkhazia are a part of Georgia under U.N.-recognized laws, in fact, laws and Security Council resolutions that Russia itself has supported. And I don't believe that Russia would want anybody questioning its territorial integrity. And we certainly don't. But we do expect the world to live up to its obligations to live up to the -- and live up to the law. And the law is that Georgia's territorial integrity should be intact and it should not be a question. And so it doesn't surprise me, though, that Russia and South Ossetia or Abkhazia would be having those conversations. Read more Comment (0), Email this.

MS. PERINO: We're taking measured looks at all of this, but it's not just the United States; this is the international community and especially Europe, who has been very strong. You've had strong statements out of NATO, the G7, the OSCE, across the board, and then the individual countries themselves making strong statements that they stand with Georgia. They stand for democracy; they believe in the cause that these countries have been working towards.

And Georgia was a bright shining star economically there in the region, and they're going to need help reconstructing their economy. Right now what we're focused on is trying to get humanitarian aid in there, because there are many people who are homeless, or who are without food or clean drinking water, and so that has to be our priority right now. Read more Comment (0), Email this.

MS. PERINO: What we want is the posture before August 6th, and before August 6th you did not have Russian bases on that territory.

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

MS. PERINO: Speaking of that, I actually have a statement by the President I forgot to read. (Laughter.) We will release it, but let me give it to you here.

President Bush will say, in his words: Today Senator McCain made an exciting decision in choosing Alaska Governor Sarah Palin to join him on his ticket as the vice presidential candidate. Governor Palin is a proven reformer who is a wise steward of taxpayer dollars and champion for accountability in government. Governor Palin's success is due to her dedication to principle and her "roll up your sleeves" work ethic, and services as a wonderful example of the spirit of America.

By selecting a working mother with a track record of getting things done, Senator McCain has once again demonstrated his commitment to reforming Washington.

I applaud Senator McCain for selecting Governor Palin. This decision is yet another example of why the American people can trust him to make wise decisions and to confidently lead this country. Read more Comment (0), Email this.

MS. PERINO: Yes, I -- that's what I led off the briefing with -- he called her. Read more Comment (0), Email this.

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

MS. PERINO: I reject the notion that expanded powers were given to Vice President Cheney -- Read more Comment (0), Email this.

Q I don't say that in a pejorative -- the President has always talked about the responsibilities

MS. PERINO: Yes, I see what you mean. Read more Comment (0), Email this.

MS. PERINO: I think it will just depend. President Bush has relied on Vice President Cheney for many things, and one of it was the experience and judgment that he brought to the job in a variety of areas, for all of the service and dedication that he had had over the years. And he's been a steady hand and a good confidential advisor for this President.

And -- but every President gets to make their own decision as to how their Vice President would work. But what I saw today was that Senator McCain fully intends that Governor Palin will be by his side and will be a strong partner for him, and I think he couldn't have -- made a better choice.

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

Q Two quick questions. One, did President watch last night Senator Obama's acceptance speech? And

MS. PERINO: Sure. President Bush did not stay up to watch the speech last night, but he did see a lot of the reporting on it this morning and watched some of the pieces. So he did see it. And absolutely, it was a great moment for America that we have -- that shows that we've come a long way. And he certainly congratulated Senator Obama on this achievement and it speaks volumes for this country, that it's an opportunity -- it's a land of opportunity for all people. And he's going to be focusing his efforts now on the contest to come, which is the presidential election and he'll be supporting John McCain. Read more Comment (0), Email this.

Q And second, as far as the President's travel to China -- Olympics now over -- many human rights

MS. PERINO: President Bush did raise all of those issues before he got to China, and then with the Chinese directly, and he will continue to, as will the rest of the world, and continue to put pressure to allow for more human rights in the area.

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

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

MS. PERINO: Not off the top of my head, but we can look for you. Read more Comment (0), Email this.

Q And secondly, can you talk a little bit about his feelings about the changed circumstances? After

MS. PERINO: I don't think that you can speak for the delegates of this country, especially of the GOP. This is a party that has stood by the President, and -- but conventions are about the next President and who the candidates are going to be, and it's their chance to shine. And we intend for the spotlight to shine fully on John McCain. And that's what the President is going to do in his speech, is spend the great majority of it talking about how our nation has faced significant challenges on several different fronts, and that John McCain is the type of person who can come in and start leading immediately, because he's got the experience to do so. Read more Comment (0), Email this.

MS. PERINO: Not from this President, no.

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

MS. PERINO: No, but we were informed beforehand. Read more Comment (0), Email this.

MS. PERINO: Good morning. A couple of announcements. Welcome back, first of all. Look at this, we have a new podium that is actually my size -- (laughter) -- and I can see over the top of it. So hopefully that will be a good sign.

First of all, federal officials here at the Homeland Security Council and then at the Department of Homeland Security, FEMA and the National Hurricane Center are closely watching the progression of Gustav -- this is the tropical storm -- and they're preparing for its potential landfall. The FEMA Administrator is in Louisiana today, and the Secretary of Homeland Security will travel to the area this afternoon.

Secretary Chertoff spoke to Governor Jindal yesterday regarding the state's preparation and their need for federal assistance. And then FEMA Administrator Paulison spoke to Governor Barbour this morning.

All residents in the region are encouraged to make personal preparations and listen to guidance from state and local officials. Information is available at ready.gov on how families and individuals can best prepare for the storm.

A update on a visit from a foreign leader. President Bush will welcome President Martin Torrijos of the Republic of Panama to the White House on September 17, 2008. Panama is an important friend and ally of the United States. The President looks forward to discussing a range of issues with him, including our common commitment to the United States-Panama trade promotion agreement, expanding free trade and strengthening democracy throughout the region, enhancing security cooperation and strengthening cooperation in international issues.

This visit, following President Torrijos's visit last May, underscores the ongoing deep friendship and cooperation between the United States and Panama.

And finally, we received good news earlier this morning with a strong upward revision of second quarter gross domestic product from 1.9 percent to 3.3 percent; that exceeds all expectations. This level of growth is demonstrating the resilience of our economy, even in the face of high energy prices and the housing market downturn. Another positive sign was the decline in the number of new people who are filing for unemployment benefits, and that's been a good trend as well.

Economic growth in the second quarter was led by strong growth in consumer spending, in part by the economic growth package that was passed last February, and also by very strong export growth. The strong growth in exports we've seen in recent years demonstrates just how important it is to continue with President Bush's efforts to open markets for America's goods and services. There should be no question that trade contributes to economic growth and creates jobs here at home for American workers and farmers. And when Congress gets back from its recess, it should continue this momentum by passing the Colombia free trade agreement and the other FTAs we have negotiated.

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

Q Dana, on two of the topics you mentioned -- on the economy, is the White House at this point seeing

MS. PERINO: Well, we're pleased with the numbers. We think that they are heading in the right direction. We want to make sure that we do everything we can to keep them going in the upward trend. But the way you described it, no, I wouldn't say that, and no one's doing a victory dance, but what we are doing is making sure that we continue to press Congress on one of the most important aspects, which is free trade.

If the American economy is increasingly able to export its goods and services around the world, that is good for all of us, and it's good for those countries, their consumers and their businesses, as well as for us. And so that's why we are aggressive on free trade and will continue to be over the next month. Read more Comment (0), Email this.

MS. PERINO: Sure. He gets regular updates. He had one yesterday afternoon and then again this morning from senior staff. If there is an update this afternoon, I'll let you know. I think that he'll be speaking with Secretary Chertoff, but as I said Secretary Chertoff is going to be traveling so I don't know the exact time. So, yes, he's involved, engaged, and getting briefings and working to make sure that the federal assistance is there, but that obviously state and local authorities have responsibilities. And by all accounts and purposes, they are following through on those. Read more Comment (0), Email this.

MS. PERINO: We have no scheduling changes to announce. Remember, this is Thursday morning. Now the hurricane -- the tropical storm at this point -- if it turns into a hurricane, we'll have to then change the name. But it's now scheduled to make landfall sometime on Tuesday. So these storms have a tendency to change and so I don't have a scheduling update for you now. Right now everything is on schedule. Read more Comment (0), Email this.

MS. PERINO: I think it's premature -- too premature to say. Read more Comment (0), Email this.

MS. PERINO: I think it's too premature to say. We'll just continue to watch it, do what we need to do to make sure that all the plans are in place to make sure evacuations are implemented, that we provide for the other types of materials that they need, or -- in terms of wood, or if they need ice -- wood for boarding up windows. So that's where our focus is. I think it's premature. I know that everyone is very interested to see whether or not there will be a scheduling change. I just don't have one to announce right now. Read more Comment (0), Email this.

MS. PERINO: Obviously a Category 3 or 4 storm is one of huge significance, no matter where it would hit in the United States. And so the President is engaged to make sure that we're doing all we can to help those state and local officials.

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

MS. PERINO: Again, I think it's a little bit premature. Let's -- we need to see where this storm is headed. Things change. Read more Comment (0), Email this.

MS. PERINO: Yes, he was just there in New Orleans and Mississippi to highlight and focus on the redevelopment and reconstruction of that area. So we'll let you know if there's a change. Right now it's just premature.

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

Q Vladimir Putin just told CNN that the U.S. orchestrated the Georgia conflict for political purposes

MS. PERINO: I think that those claims, first and foremost, are patently false. But it also sounds like his defense officials who said they believe this to be true are giving him really bad advice. Read more Comment (0), Email this.

MS. PERINO: Here in the United States and with our allies, I don't see an increase in the rhetoric. What I do see is unanimity for the sovereignty, the independence, and the territorial integrity of Georgia. And you've had strong statements, but I don't think that necessarily equates an escalation of the rhetoric. It's that people feel very strongly that territorial integrity, sovereignty and independence are to be respected. And in fact, throughout several U.N. Security Council resolutions, Russia has recognized the territorial integrity of Georgia. And so it's going back on its word. We also are very concerned because Russia continues not to be in full compliance with the agreement that it signed on to just two weeks ago.

And so we are going to continue to press. There will be consequences for Georgia, and I think that they -- I'm sorry, consequences for Russia -- and I think that this isolation that they are feeling throughout the world towards them is just one of those consequences, and there will be others. Read more Comment (0), Email this.

MS. PERINO: It just is -- to suggest that the United States orchestrated this on behalf of a political candidate just sounds not rational. Read more Comment (0), Email this.

Q France is saying that the European Union is getting ready to consider sanctions on Russia over

MS. PERINO: I don't know if France has shared their internal discussions with us, but even if they had, I probably couldn't discuss them here. What I can tell you is that we are in the process of reevaluating our relationship with Russia. And we are doing that in concert with our international partners such as France, but also many others, including Germany and all the NATO countries. Read more Comment (0), Email this.

SENIOR ADMINISTRATION OFFICIAL: Russia's actions in recent weeks have clearly cast grave doubts on its intentions, its purposes, and its reliability as an international partner. It is critically important at this time of uncertainty that we are consulting and coordinating very closely with our friends, especially those who literally are living in the shadow of Russia's recent power play.

But also with our allies throughout Europe, the West, and the broader international community, Russia's actions pose a serious challenge to us all. They merit and demand a unified response from the free world -- one that is based on a sober appreciation of the new realities created by recent events; that responds thoughtfully but with firmness and resolve to the immediate needs of this crisis; but that also provides a long-term strategic framework going forward that will responsibly protect and advance our interests and values in the months and years ahead.

And this includes, I should stress, our fervent hope that Russia's leaders will over time reconsider the costs, benefits and wisdom of Russia's recent behavior, and move to help us reestablish a basis for picking up again the consistent course that every American President since the end of the Cold War has placed near the very top of his agenda -- and that is to deepen the U.S.-Russian relationship, to lead the effort to promote Russia's integration into the international community as a full and equal partner, and to help build a Europe that is undivided and committed to a common set of principles, including democracy, the rule of law, and respect for the sovereignty and independence of all its members, regardless of their size, power or geographic disposition.

Let me now quickly run through the basics of each of the stops. The centerpiece of the visit to Baku on Wednesday will be a meeting and dinner with President Aliyev and his team. As I indicated earlier, the Vice President has known President Aliyev for quite some time. And he met the current President Aliyev when he was, again, I think, Azerbaijan's Minister of Oil. When President Aliyev made a working visit to Washington a few years ago, the Vice President hosted him for lunch at the Vice President's residence.

In addition to their discussion of recent events in Georgia, there are a number of other important topics on the U.S.-Azerbaijan agenda. Azerbaijan has been an important partner in the war on terror, not only through its cooperation on counterterrorism, but in contributing troops in both Afghanistan and Iraq. I think the Vice President will want to express America's appreciation for that assistance.

I also expect that energy will be a major topic of conversation, obviously, especially in light of the global energy situation, currently. The importance of working with Azerbaijan to help its people develop their energy resources and reliably bring them to market is a very strong common interest, not just for the United States but for all the nations of Europe, as well, as they plan for their own energy futures.

Other important issues in Azerbaijan include the need to resolve peacefully the conflict in Nagorno-Karabakh; the international community's concerns with respect to Iran; and our continued support for efforts to strengthen democracy and the rule of law in Azerbaijan, where I believe they're scheduled to hold a presidential election in the near future.

In Georgia on Thursday, the Vice President's time will obviously be consumed assessing with President Saakashvili and his team the aftermath and implications of this crisis. Again, the Vice President knows President Saakashvili well. They have spoken by phone on at least a couple of occasions since the outbreak of this crisis.

As you know, at the President's direction, Secretary Gates has been overseeing a significant U.S. relief effort to address the immediate humanitarian needs of the Georgian people. The Vice President wants to get a first-hand assessment of the heroic job being done by U.S. personnel, as well as how the overall international relief operations are progressing in light of the continued difficult circumstances on the ground.

Finally, I'm sure that the Vice President and President Saakashvili will also look beyond the immediate situation and discuss in depth the need for a comprehensive long-term strategy by the international community to help Georgia recover and rebuild, including the critical task of supporting the democratic choice of the Georgian people to integrate further with Euro-Atlantic institutions, including NATO.

In Ukraine, the Vice President arrives on Thursday night, and he's currently scheduled to attend a private dinner with Mrs. Cheney and President Yushchenko and his wife. He'll then hold a working meeting with President Yushchenko on Friday, as well as a meeting with Prime Minister Tymoshenko. Here, again, the Vice President knows these leaders quite well, especially President Yushchenko who he's met several times since Ukraine's Orange Revolution, and spoken to by phone on numerous occasions.

Again, in addition to the situation in Georgia and reaffirming the great importance we place on our relations with Ukraine, I think the Vice President will want to thank Ukraine for its support in places like Afghanistan and Iraq. And despite great challenges, Ukraine continues to develop its democracy and its economy, and to seek deeper integration with Euro-Atlantic institutions, including NATO. The United States has long supported Ukraine in these efforts, and we will want to continue doing so, going forward.

Finally, in Italy, there are two parts to the visit. The first consists of the Vice President's appearance at the Ambrosetti Conference at Lake Como, where he's agreed to give a speech that will look at some of the key challenges facing the Trans-Atlantic alliance. The Vice President has received numerous invitations over the last several years to attend this conference, and this trip provided a good opportunity, finally, to accept.

After Lake Como, he's off to Rome for discussions on Monday and Tuesday with Italy, our longtime ally and key NATO and G8 partner. The Vice President will hold meetings with both the Italian President and Prime Minister, and will discuss a full range of issues on our common agenda -- from the crisis in Georgia to the situation in the Middle East, Iraq, Afghanistan and Iran.

Why don't I stop there, and see if there are questions. Read more Comment (0), Email this.

MS. PERINO: I think it's premature to say. I don't know what ultimately will result from the process that people are in to discuss what the consequences may be. We just aren't there yet. It's premature to say. Read more Comment (0), Email this.

SENIOR ADMINISTRATION OFFICIAL: Well, I think that -- well, the President, first of all, has asked that the Vice President visit these particular countries first. There's obviously a division of labor that happens in these things. There's a lot of diplomacy to be done. First and foremost, I think the principal is with your friends and with your allies. There will be ample time and opportunities for discussions with Russia, both by us and by our allies. Secretary Rice is on top of a lot of that. There are contacts going on now. But I think for this trip, the President thought it was important for the Vice President to make these particular stops. Read more Comment (0), Email this.

MS. PERINO: I think I'll just decline to say because I don't know what the final outcome will be. And so they'll have to take a look at the range of issues that could result.

I saw the other day that someone suggested -- maybe it was even President Medvedev himself who said that they don't fear a new Cold War. I don't think anyone should be looking for a new Cold War. What we would like to see is the return to the status quo before August 7th and the hostilities began; before Russia invaded Georgia; before the disproportional response to the regular flare-ups that happen in the summertime out in that area. And from there, what we would like to see is a return to a place where we can have integration of Russia into the international community.

Unfortunately, it's Russia that made the choice to take several steps backward in that regard, and I think that even if you look at the Russian economy and the questions that businesses have about whether or not to continue to do business there and what's happening in their stock market and what's happening across the board in their country, that this is very troubling for Russia and a time for the countries who believe in sovereignty, independence and territorial integrity to band together to fight against it. Read more Comment (0), Email this.

Q Could you talk a little bit -- you mentioned energy on a couple of occasions there. Can you talk

SENIOR ADMINISTRATION OFFICIAL: I can't say too much more beyond the fact that the United States and Europe and Turkey and other countries have long been interested in ensuring a diversity of supplies and supply routes of energy to Europe and the international market. And Azerbaijan and Central Asia and the Caspian Basin, in general, provide great opportunities to develop additional resources and put new reserves on the international market. And the United States and our allies, I think, have long expressed support for helping those countries develop those resources. And that's what we'll discuss -- what he'll discuss with President Aliyev and others. Read more Comment (0), Email this.

MS. PERINO: I'll do Mark first. Read more Comment (0), Email this.

SENIOR ADMINISTRATION OFFICIAL: Well, the Russian incursion in Georgia, I mean, it remains to be seen exactly what the strategic implications of it are. Obviously, there are a lot of countries in that region that are quite concerned about what all this means. And I think part of the purpose of all of this is to get a first-hand chance to privately have some very candid discussions with these leaders about their concerns and views about what the future holds, and how we can work together to address some of those concerns.

Specifically on the energy front, I mean I -- you know, I would point you to Foreign Minister Miliband's speech yesterday in Ukraine, and the kind of impact he observed there about what the most recent events portend for the way Europe thinks about its energy future, and the way the rest of the world needs to think about energy security in light of this unpredictable behavior by Russia that stands as a major supplier of oil and gas into Europe. Read more Comment (0), Email this.

MS. PERINO: I don't think there's anything to announce yet, but I know that that is under discussion. Read more Comment (0), Email this.

Q If I may follow up, that seems to be part of the reason why the reaction from Europe, while unified

SENIOR ADMINISTRATION OFFICIAL: What's the question? Read more Comment (0), Email this.

MS. PERINO: I don't know. They had a private dinner, but if I get anything more on it, I'll let you know. Read more Comment (0), Email this.

SENIOR ADMINISTRATION OFFICIAL: Listen, the importance of Russia's role in the overall international energy market, particularly Europe's, I think, is an indisputable fact. It's a reality that I think obviously enters the calculations of Europe and everyone else when they figure out how we best respond to this crisis.

On the other hand, I would say that I think people have been quite impressed with the unity and the universality within the alliance in places like the G7 -- both how deplorable Russia's military action was, and the illegitimate nature of the subsequent step it took to unilaterally try and alter Georgia's borders by recognizing the independence of Abkhazia and South Ossetia. I think, clearly, the NATO statement on these events, and the statements by individual countries, the G7 statement by foreign ministers yesterday, will happen at the upcoming meeting of EU leaders and the diplomacy going forward. I think you're only going to see that kind of unity enhanced. And it's obviously an important purpose in these kinds of visits that the Vice President is undertaking. Read more Comment (0), Email this.

MS. PERINO: No, I would say that we're just taking a very methodical look at the range of issues and working with our partners. One of the most immediate focuses that we have is to return to the status quo before the hostilities began on August 7th. That's the immediate issues that we -- issue that we need to deal with. Then the other issues will come in time. This is not something that we're rushing into. Read more Comment (0), Email this.

SENIOR ADMINISTRATION OFFICIAL: I am certainly not going to reveal to you what may or may not happen in these discussions and what he's going to do. I'd simply say, do not underestimate what has happened already -- the unity of condemnation that we have seen of the Russian actions; what that portends potentially for Russia's own place and standing in the international community. I just wouldn't underestimate that -- which is not at all to say, and I don't want to imply that -- and I think I've said -- that a strategy is underway and is being developed. But I'm just not going to get into the details at this point in time. Read more Comment (0), Email this.

Q And on -- the Israeli press is reporting that for the first time in the country's history, there

MS. PERINO: I can't, but we'll check into it and get back to you.

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

SENIOR ADMINISTRATION OFFICIAL: Well, I mean, the immediate -- beyond simply energy, the most important is that Russia has just taken a military action against one of its neighbors. Read more Comment (0), Email this.

MS. PERINO: Victoria, there are discussions that are underway. The United States is not going to be rushed into making decisions without having thoroughly looked at all of the issues. So I just can't give you a date as to when this will occur. I don't think -- and I don't really think it's that important.

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

SENIOR ADMINISTRATION OFFICIAL: It's taken action to attempt to unilaterally change that neighbor's borders both by force and by some political action. And it obviously has a number of other neighbors that are in similar situations and are wondering what all this means for them. I'm not sure anybody has exactly the right answer, a definitive answer on all of that. And an awful lot depends on what the Russians themselves do. I don't think anybody wants to close the door -- that Russia has very real choices to make here. In fact, Russia has probably the most important choices to make on how all this unfolds going forward.

They've got a great responsibility here to think about what it is they've done and where they're headed, and the opportunity costs of that in terms of what's happened over the last 20 years in terms of the transformation of their relationship both with the United States and with the West in general, which I think has been very much in Russia's interest and the interest of the world. Read more Comment (0), Email this.

MS. PERINO: Well, as we said yesterday, we are in close contact with our six-party partners. And we have said to the North Koreans that there will be action for action, but that means that they have to have a verified -- a verification protocol that's in place before any action that we would take would move forward. And so we are waiting on them right now to come forward with a verification protocol. And that was reaffirmed by the other members of the six-party talks. Read more Comment (0), Email this.

Q Are there any specific implications for energy infrastructure that the Vice President thinks should

SENIOR ADMINISTRATION OFFICIAL: I think by its actions one has to assume -- and you can read the statements of the Western leaders -- that the level of confidence and trust that people have in Russia's overall reliability has been put in serious question by what's happened, including -- and I would assume that extends to energy and the issue of energy supplies.

Now, the United States has had a priority for quite some time in trying to lead an effort to encourage this diversification of energy infrastructure and pipelines and supplies, particularly to Europe, of gas. And I think we're on the record of supporting Nabucco. And I don't think anything about this, these recent events, has done anything but reenforce the sense that that basic strategy is important and critical, and one that has to be pursued, if anything with greater energy by us and by our European partners. Read more Comment (0), Email this.

MS. PERINO: I think that what we are looking for is -- they've made a statement, but I think their actions are important, and I'll go back to the philosophy of action for action in the six-party talks is what has got us to this point, where they just blew up their cooling tower, where they have provided a declaration; those are the things that they were supposed to do. But the other thing -- there was a third leg of that stool, and that was that they had to put forward a verification protocol. They have not done that yet, and until they do, we will not move forward on the terrorism list.

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

Q You talked about the opportunity cost that Russia faces here. Doesn't it seem like, at least in

SENIOR ADMINISTRATION OFFICIAL: I -- you know, just from a diplomatic standpoint, Steve, I -- nobody is closing any doors here. I think you've got to prepare for potentially that kind of scenario. But the ramifications are obviously very, very big if, in fact, you're correct that Russia has definitively decided this is the course it's on; this is the way it's not only going to treat Georgia, but that it will proceed in other areas along its borders. That has very large strategic implications that we -- obviously people need to consider and think about.

Secretary Gates has talked about the need for this kind of reassessment to happen. But again, to say that something is irreversible, or that the Russians can't be made, through a variety of diplomatic and economic interventions, and using other tools that the international community has, come to see that the strategic consequences of this are much too high to pay for Russia in terms of the loss of its standing and relationships and future potential -- both with the United States, Europe, much of the rest of the international community -- we hope that there will be a reconsideration, specifically of what's happened here in Georgia. If there are broader objectives that Russia is pursuing, we hope in that course, as well. Read more Comment (0), Email this.

MS. PERINO: Okay, those are like four questions in one. (Laughter.) Read more Comment (0), Email this.

SENIOR ADMINISTRATION OFFICIAL: I'm not -- I mean, U.S. objectives and purposes here in terms of our long-term relationship with Georgia and this region are consistent. So it seems to me that there's a commonality in agendas that is right and proper, and it should be in any great power's diplomacy. You know, this is a very dynamic and moving situation. Secretary Rice went there at a particular time: there were still active hostilities; the Russians had assumed a particular military posture in Georgia; the French were actively trying to work that cease-fire agreement. Secretary Rice was very actively engaged in trying to refine and get that pinned down. So there was a very immediate need that needed to be met that she did very, very well.

We've clearly moved to a different point in time now with U.S. humanitarian -- a large-scale humanitarian relief effort underway. Georgia then is assessing its medium- and longer-term needs on how it's going to rebuild its economy, reestablish some measure of security, how it will relate to the international community and the kind of support it needs. So given that kind of dynamism, I don't think you can have -- and given the need of the Georgian people and the people in that region to know and to hear again and again about the United States' commitment to stay involved, that we are not going anywhere and that we're going to continue to build our relationships with these countries, that's something that they very much need to hear. And I don't think you can do it often enough. Read more Comment (0), Email this.

MS. PERINO: Yes, I'm sure you could. I think it's a little premature for me to preview the speech, but I'll see if I can do that for you tomorrow at the briefing. What I will tell you is President Bush is going to spend the majority of his time in his speech making the case for John McCain, for John McCain to be President of the United States. It will not be a reprise of the past seven and a half years. This will focus on John McCain and why he's the right person to be President of the United States, and looking forward rather than looking back. Read more Comment (0), Email this.

SENIOR ADMINISTRATION OFFICIAL: No, I don't -- I mean, again, this is -- there are immediate needs in this crisis, and then there is a need and a very -- clearly, it is urgent, but there is a need to soberly and very responsibly figure out how we and our allies are going to proceed in this circumstance, given the stakes involved. And that process is underway. It is very, very active. But I'm not here -- going to get into any specifics or details about it. Read more Comment (0), Email this.

MS. PERINO: No, this is -- first of all, the speech is later but that is because the President of the United States will be the last speaker of the evening, so the build-up of the night will lead to the President. But the President of the United States himself decided that he would follow precedent from other Presidents who got out of town, because this is -- he is not on the ballot, this is about John McCain, and we intend to allow the spotlight to shine fully on him during this convention next week. Read more Comment (0), Email this.

Q Can you talk a little bit about the Black Sea and the various NATO ships that are there, and the

SENIOR ADMINISTRATION OFFICIAL: The only thing I can tell you, if there are concerns -- and I know that I've read about press reports of concerns being expressed -- they're just completely baseless. This is nothing but what we have said it is, which is a full-fledged effort to get humanitarian supplies in to people that have undergone enormous suffering. That's what it is. That's what we've told the Russians it is. So far we've had a good record of getting that aid in. Now we need to get it distributed to the people who need it. Read more Comment (0), Email this.

MS. PERINO: I would point you back to what President Bush said when Barack Obama successfully secured the nomination back in the spring, in which he held it up as a wonderful moment for not just African Americans, but for all of America. And so he has continued to feel that way. And now the contest is between two candidates, Barack Obama and John McCain. And I don't know how much the President has been watching the Democratic Convention. He just got back yesterday afternoon. Read more Comment (0), Email this.

SENIOR ADMINISTRATION OFFICIAL: It's unclear to me exactly what -- SENIOR ADMINISTRATION OFFICIAL: It's one of the things that he wanted us to figure out, a way to incorporate that during our time in Georgia. I know our -- (inaudible) -- is working on that, and certainly the goal being we don't interfere in any way with the distribution or any movements. So I think they're still working through that. But as of right now, that's on the schedule. SENIOR ADMINISTRATION OFFICIAL: That he'd like to do. And he will certainly be getting the report and assessment from people on the ground engaged in this effort who will -- who are very knowledgeable about it, and give him, I think, a very solid briefing on where we stand and what more needs to be done. SENIOR ADMINISTRATION OFFICIAL: If there aren't any more questions -- I mean, if you have some, please ask them. But if not, then we can let you go. SENIOR ADMINISTRATION OFFICIAL: Okay. Thank you very much. Thank you all. Read more Comment (0), Email this.

MS. PERINO: I don't know. I'll see. Read more Comment (0), Email this.

SENIOR ADMINISTRATION OFFICIAL: Was he annoyed? Read more Comment (0), Email this.

MS. PERINO: Nope, not practicing, but it's getting -- it's nearing completion in terms of the drafting.

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

SENIOR ADMINISTRATION OFFICIAL: Now, that -- he's never been annoyed; you know that. (Laughter.) Read more Comment (0), Email this.

Q Two quick questions. One follow of Sheryl -- as far as this first not only like you say African

MS. PERINO: President Bush has said and he strongly believes that America is the best country on earth and a place where everybody, if they work hard, can achieve great things. And I think what Barack Obama's nomination shows is that America is a wonderful land of opportunity and we've come a long way and it's something that we can be very proud of. Read more Comment (0), Email this.

SENIOR ADMINISTRATION OFFICIAL: I can't tell you want his initial reaction is. I think he's been like the President, and from everybody on down, very much focused on the complete and utter deplorable nature of what the Russians have done here, both militarily as well as this attempt politically to dismember Georgia, to change its borders by force. And that's been the consistent message I've gotten from him, other than the need to go in there and help our friends and allies rebuild out of this crisis, and to reassure them about the continued and deep interest of the United States in this region, and our determination to remain there engaged. Read more Comment (0), Email this.

Q And second, as far as -- the President is watching or has been briefed as far as the situation

MS. PERINO: Yes, the President is kept fully briefed on it, and I would refer you to Department of Defense, who would have more on their recent conversations with their military.

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

Q Can I just ask one last follow-up? You mentioned reassuring them, and it's what he's going to

SENIOR ADMINISTRATION OFFICIAL: Again, let me tell you, the Vice President of the United States, Dick Cheney, showing up in places he hasn't been before I think is a reassuring step. And I think the Vice President, and the President, who thought it important enough to send him there on this kind of mission in the middle of this kind of crisis, I just would not underestimate the importance of that signal.

We do already have, I think, quite extensive and deep relationships with these countries. And as I said, we're determined to continue to strengthen those relationships, whether in the economic field, the political field, the security field, the way we work with them, and particularly with regard to Ukraine and Georgia, their aspirations to move closer to Euro-Atlantic institutions, including NATO. So I think there will be important discussions on all of those that will advance that agenda and intention on the part of the United States, and I think on the part of all of our allies in Europe. Read more Comment (0), Email this.

MS. PERINO: Go here, and then I'll come right back. Read more Comment (0), Email this.

SENIOR ADMINISTRATION OFFICIAL: It is, yes. Read more Comment (0), Email this.

MS. PERINO: No, we have studiously avoided, as you will learn, getting into 2008 politics, so I'm not going to comment.

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

SENIOR ADMINISTRATION OFFICIAL: Yes. And I think the same thing for Azerbaijan. Ukraine, all I'm aware of is that he went there as a congressman at some point in time. Read more Comment (0), Email this.

MS. PERINO: In Georgia? Or Gustav region? Oh, okay, sorry. (Laughter.) Wildly different questions and answers. (Laughter.) But I don't think the military -- we're assessing the needs right now. Secretary Chertoff is there to talk to both Governor Jindal, and then Governor Barbour talked to FEMA Director Paulison, to find out what they need from the federal government. I think right now the focus is on helping the state and locals perform their responsibilities, which is to evacuate where appropriate, make sure that assets are prepositioned.

FEMA is going to have a conference call for reporters this afternoon at 2:30 p.m., and they might have more of an update for you at that point. Read more Comment (0), Email this.

SENIOR ADMINISTRATION OFFICIAL: This is new. He's had invitations from each of these countries for quite some time now that he hasn't been able to take up. He's been very interested in doing it; they've been very interested in having him come there. And circumstances are clearly unfortunate, but they are in some ways -- make it all the more important that he get there. Read more Comment (0), Email this.

MS. PERINO: No. But we have -- Read more Comment (0), Email this.

MR. FRATTO: We're on our way back to Washington, D.C., I guess the last visit to Crawford for August, for last August, last hot August in Crawford for the President and all of you. So we're on our way back to Washington.

The President had his normal briefings this morning. He'll return to the White House, and then this evening, the President will have dinner with Secretary Rice. As you know, the Secretary was recently in the Middle East for meetings with the Palestinian leaders and the Israeli leadership, and previously was in Poland, Georgia and Iraq. So Secretary Rice will have an opportunity to update the President this evening on developments in all of those areas.

Then we have a couple quick announcements for you. Last year President Bush signed an executive order to direct specific federal agencies to facilitate the expansion and enhancement of hunting opportunities and the management of game species and their habitat. In this EO, the President directed the Chairman of the Council of Environmental Quality to host a White House Conference on North American Wildlife Policy for exchanging information and ideas about the goals of the EO. Today we're pleased to announce that this conference will be held October 1-3 in Reno, Nevada. We'll have more details about the speakers and the agenda in the coming weeks.

And also, I mentioned yesterday and just want to reiterate today that we're, of course, paying close attention to Tropical Storm Gustav. FEMA officials from throughout the Gulf region are reviewing all the plans and procedures in advance of the storm's potential landfall next week. Officials are reviewing supply prepositioning plans, and they're examining contracts for transportation of response items, which may be needed if the storm impacts the region.

It's important that citizens in these areas take the storm warnings seriously, listen to the guidelines of local authorities, and take necessary precautions, including adhering to any potential evacuation orders, if they're issued, in order to protect themselves from the storm.

So just an update that FEMA officials are in contact with disaster assistance agencies in the full breadth of states that could be impacted should this -- especially if the storm would strengthen and intensify and make landfall sometime -- I think the latest estimates are early next week.

With that, I'll take your questions. Read more Comment (0), Email this.

MR. FRATTO: You can expect them to have extensive discussions about where things are going with respect to Russia and Georgia. Obviously the President has had communications with his staff and others. Last night he spoke to President Saakashvili again to get an update from the President, and Secretary Rice has been speaking to her counterparts.

I think what you saw yesterday, the reaction to Russia's action to attempt to recognize the two republics was met with a very strong international response of condemnation for that decision. And so I think Secretary Rice will have an opportunity to report back on Russia and Georgia; certainly on how the talks in the Middle East are going; her discussions with respect to Iraq and other areas. Read more Comment (0), Email this.

MR. FRATTO: There was a phone call, yes. Read more Comment (0), Email this.

MR. FRATTO: President Saakashvili called President Bush. Read more Comment (0), Email this.

MR. FRATTO: I don't have a readout for you on it. Read more Comment (0), Email this.

MR. FRATTO: No, the Chinese leaders will make their own decision. I think we've seen no countries follow Russia's lead. And I think you can take that into comparison to, say, for example, recognition of Kosovo, where scores of countries followed the lead to recognize Kosovo. Read more Comment (0), Email this.

MR. FRATTO: I think everyone has called on Russia to rescind its decision. Read more Comment (0), Email this.

MR. FRATTO: I'm not into looking for signs. I think we will continue to make our case. Europe, the United States and other leaders around the world will make the case to Russia that this is a very short-sighted decision on their part, and it's forced them to take a step back with respect to their relations with the rest of the world, and that step back has costs and consequences.

I think you've heard others out there -- even since yesterday I saw David Miliband give a very excellent speech today in the Ukraine. I think we would agree with I think everything that the Minister said in Ukraine. Read more Comment (0), Email this.

Q Tony, the President first issued a statement urging Russia's leaders not to grant -- or to grant

MR. FRATTO: That's a decision for the President to make. It could be a decision that he may want to make at some point in time. And he hasn't -- like I said yesterday, there's no ambiguity with respect to our position, and the Russians understand that. We've been very clear, the European leaders have been very clear, NATO has been clear. The Secretary General of the United Nations made his position known yesterday. So I think Russia has gotten the message. I'm not going to try to speculate as to when that message will influence their decisions. Read more Comment (0), Email this.

MR. FRATTO: No. I -- Read more Comment (0), Email this.

MR. FRATTO: That's something for him to answer. Each -- every one of these situations is different, and to try to compare them is just -- it's -- Read more Comment (0), Email this.

MR. FRATTO: It's not a -- it doesn't follow rationally. You can go back and look at the facts of Kosovo and see that there was extensive international involvement in how to resolve the situation in the former Yugoslavian republics. There was long-established evidence of genocide in Kosovo. There were entreaties and envoys -- entreaties made to leaders in the former Yugoslav republics and envoys sent to discuss these issues. The outcome was part of a very elaborate international process.

None of these things happened with respect to Georgia and the two republics. So the comparisons just simply don't hold up. And, by the way, it was only, what, a week, 10 days ago, that President Medvedev signed an agreement brought to him by President Sarkozy that specifically called for international discussions to resolve the status of the two Georgian regions. Read more Comment (0), Email this.

MR. FRATTO: I think he saw some of the coverage of it. I don't believe he was watching the convention itself. But I'm sure he'll watch parts of it at some point this week. You know, he's obviously a fan of politics and campaign politics and enjoys that, and I'm sure he'll find an opportunity to watch some of it here or there. Read more Comment (0), Email this.

MR. FRATTO: He is willing to -- he is supporting President McCain and he's aware of how -- Read more Comment (0), Email this.

MR. FRATTO: Did I say President McCain? Read more Comment (0), Email this.

MR. FRATTO: Well, we'll all be saying President McCain soon enough, don't worry. (Laughter.) Read more Comment (0), Email this.

MR. FRATTO: Good afternoon, everyone. Sorry for the delay. Let me just give you a quick update on something, and then we'll get into a little bit of the news of the day. And then I'll be ready for any questions you have.

The President this morning had his normal briefings, and was out on the ranch, working with some brush-clearing and trail-building. He obviously had a number of calls with senior officials back in Washington.

Also, to update you on a call he had yesterday with Governor Crist of Florida -- called to talk about the damage caused by Tropical Storm Fay, I think now Tropical Depression Fay, and the flooding -- the severe weather and flooding taking place in Florida. We obviously have a major disaster declaration out there for Florida.

Additionally, FEMA Administrator Paulison called Florida officials this morning to inform them that individual assistance has been added to the major disaster declaration. Administrator Paulison and Small Business Administration Acting Administrator Sandy Baruah are in Florida today to talk with state and local officials, and visit a state logistics center. Federal officials are also keeping an eye on the progression of Hurricane Gustav.

A number of you have asked today, and I've seen reporting with respect to the Russian decision on their part, the very unfortunate decision to attempt to recognize the independence of the two regions in Georgia. You've heard Secretary Rice on this this morning; I certainly refer you to her comments and I can tell you that you can expect a statement to be issued from the President later this afternoon.

Clearly, the actions by Russia stand in contradiction to existing U.N. Security Council resolutions and the spirit of the U.N. Security Council, and the territorial integrity and sovereignty of the country of Georgia. Georgia's territorial integrity is contained in a number of U.N. Security Council resolutions, and those resolutions recognize that Abkhazia and South Ossetia are part of Georgia.

The Russian decision yesterday also violates the cease-fire agreement that President Sarkozy brought to President Medvedev for his signature. He signed it, and this is clearly another violation of the agreement. That agreement speaks to the territorial integrity and sovereignty of Georgia.

So it is a serious issue, but I think as Secretary Rice made clear, this is not an act that will be recognized by the U.N. Security Council. It will be dead on arrival at the U.N. Security Council. And this is another case, it's a reminder to the world of Russia committing to one thing and doing another. And so it leads all of us, the international community, to question Russia's commitment to its word. And I think that's what you're hearing from certain world leaders out there today. The NATO Secretary General issued a statement this morning. Chancellor Merkel has issued a statement. The French, on behalf of the EU, as they sit as the EU President, have just released a statement. And so it is fairly universal condemnation of the actions taken by Russia.

So, as I said, you'll hear -- or you'll read a statement by the President at some point this afternoon. And with that I'll be happy to take your questions.

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

MR. FRATTO: Russia is making, I would say, a number of irrational decisions. And this is not about the United States and Russia; this is about Europe and the international community and Russia, and the choices Russia is making that affect its place in the world. And so far we've seen a series of unfortunate decisions by the Russians that only serve to further isolate them. And we hope that they hear the loud voices from the international community and understand that it's not in their long-term interest to take these kinds of actions.

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

MR. FRATTO: Any effort to try to sanction this at the U.N., I think you would see a very swift and clear message from the United States, if not the other members of the U.N. Security Council, that there will be no recognition of Russia's act.

Jeremy. I'll come back to you next, Mark. Read more Comment (0), Email this.

Q Since the U.S. entreaties to Russia about not recognizing these breakaway regions didn't seem to

MR. FRATTO: I think there's time for that. As I said yesterday, we are still focused on supporting Georgia, getting humanitarian assistance into Georgia. We've had scores of C-17 and C-130 flights delivering humanitarian assistance into Georgia. We have ships unloading many pallets of humanitarian assistance to Georgia. We'll continue to do that. We'll continue to support them through the G7 -- especially in the G7 finance ministers and with the international financial institutions, to ensure that Georgia's economy remains on track -- one of the shining stars of that region was the Georgian economy before the conflict broke out -- and other ways that we can continue to support Georgia in the short term.

In the medium and longer term, we'll -- as we've said, we're reviewing our relationship with Russia. Europe is reviewing its relationship with Russia. Russia still has some choices to make. Our long-term goal is that we want to see Russia return to at least the commitments that it had in the past to be integrated into global institutions, especially rules-based institutions like the WTO and other organizations around the world. Read more Comment (0), Email this.

MR. FRATTO: That's ridiculous. Those are clearly -- he asked about Medvedev's comments regarding the nature of our humanitarian aid shipments. I can assure you that these are purely humanitarian aid shipments that are going into Georgia and nothing else. Read more Comment (0), Email this.

Q Tony, the President we know puts great store in his personal relationships with foreign leaders

MR. FRATTO: I think the Kremlin can speak for itself on what their intentions were. I can tell you this was not just the American President calling on Russia not to take this very damaging step. It was the leaders in Europe and the European Union, NATO and other leaders around the world who called on Russia not to take this step. Again, this is a damaging step for Russia, and this is a result of choices that the Russians are making, and they're very unfortunate choices. Read more Comment (0), Email this.

MR. FRATTO: That's right.

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

Q Tony, to follow what Jeremy was asking, in that interview, Medvedev also indicated, though, that

MR. FRATTO: Well, once again, the Russians have made a commitment to allow humanitarian shipments into Poti. Now, there's a question as to whether Russian forces should even be in Poti at this time -- actually, I would say there's no question that we also call on Russian forces to pull out of Poti. It's an undisputed territory. It's part of an undisputed area of Georgia, unlike the two special regions. So we'd prefer that they'd pull out of Poti. But at any rate, as part of the cease-fire agreement, they have agreed to allow all humanitarian aid shipments to enter Georgia. And again, they should live up to that commitment.

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

MR. FRATTO: I don't have any plans for that at this time that I'm aware of. Read more Comment (0), Email this.

MR. FRATTO: That would be a decision for the President and his senior advisors to make, and I just -- I have nothing on that right now.

But there's nothing ambiguous about Russia's obligations here. They have obligations to the cease-fire agreement, which they signed very publicly. They have obligations to the public comments they made to live up to those commitments in the cease-fire agreements. Russia is a Permanent 5 member of the U.N. Security Council, so they have an obligation to live up to their U.N. Security Council resolutions -- resolutions which were passed with Russian support. So the Russians know their obligations, and I don't know that it requires anyone to go to Russia to inform them of it.

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

Q Tony, the Russian President also said that if NATO tore up its cooperation, "nothing terrible would

MR. FRATTO: I can't emphasize it enough, actually. I mean, a lot of damage has already been inflicted on Russia. And it comes in many forms. Clearly it's in international politics and diplomatic activity; that is a cost. There are economic costs that Russia has already suffered -- not just because of, by the way, the recent conflict in Georgia, but because of a series of actions they've taken over a number of years that include authoritative -- heavy-handed authoritative measures against commercial activity in Russia. There is a risk premium to doing business in Russia. And you can go out and talk to international bankers and global companies and ask them about it. I think some of them would be happy to talk about it.

So there are costs. And they're already in place, and I think there's evidence that they're being felt in Russia. And that's the nature of the world. When you heard President Bush and Secretary Rice talk about the fact that we're in the 21st century and it's a very different world, you can't go out and see the fruits of military conquest and take those kinds of disproportionate responses to international conflict -- that's part of what they meant. We are a much more interconnected world, and there are costs to countries who choose to go outside of what are the traditional norms for -- now traditional norms for the relations between states. Read more Comment (0), Email this.

MR. FRATTO: Well, I think the world is frustrated, but we're not frustrated in our support for Georgia. As we've said, there is -- Russia made a decision -- they made a tactical decision. They may have seen some tactical gain in their military success, but it is a long-term strategic failure. It's a long-term strategic failure for the reputation of Russia, and even in their strategic relationship with countries on their borders. There is absolutely no question that there is unified support for a democratic and free Georgia and for the success of that country.

And we stand with them, the European Union stands with Georgia, and that's going to continue to be the case. So if that was the ultimate aim of Russia, they have clearly failed in that. Read more Comment (0), Email this.

MR. FRATTO: A non-Russia? We're going to stick with Russia and Georgia, and then we can come back to it. One more? Okay. Read more Comment (0), Email this.

MR. FRATTO: Secretary Rice addressed this. Russia will do what is in its interest, and it is not in Russia's interest to have a nuclear-armed nation on its border on the Korean Peninsula. I'm not aware of any degradation of our cooperation with respect to the six-party talks.

But with respect to North Korea's announcement today, we've been very clear with North Korea that there will be action for action. And they have linked this to -- they have linked their action to not being taken off the state sponsor of terrorism list. The other members of the six party have made it clear -- of the six parties have made it clear that we will -- that United States will not take North Korea off the state sponsor of terrorism list until we have a protocol in place to verify the dismantling and accounting for Korea's nuclear program.

So that's not a new demand; that's a longstanding demand. It's not just a U.S. demand; it's a demand by the other five members of the six-party talks.

I'm sorry -- still on Russia? Read more Comment (0), Email this.

MR. FRATTO: Well, they're clearly not in Russia's long-term interest to be integrated into Europe and to be a force of peace and good relations on its borders and in that neighborhood. And Chancellor Merkel used those kinds of words, as did the Secretary General of NATO this morning. So that's irrational.

Roger, on this also? Read more Comment (0), Email this.

MR. FRATTO: Nothing specific that I can relate. Read more Comment (0), Email this.

MR. FRATTO: Nothing specific that I can relate, that I'm aware of. Read more Comment (0), Email this.

MR. FRATTO: I haven't heard that they will not allow them. That's not something that I've heard, except from your question. Read more Comment (0), Email this.

MR. FRATTO: I'm sorry, I'm really just aware of the reports, but I don't have any facts that I can speak to. Read more Comment (0), Email this.

MR. FRATTO: Good afternoon, everyone. The President today had his normal briefings. He also went on a bike ride early today; has been in touch with some of his senior members of the administration back in Washington. Also this afternoon, the President will host the 100 Degree Club Run. I'm not sure we'll actually get to 100 degrees out there, so we'll see. I know there's some squawking from past members of the staff who have actually achieved the 100 degree run whether it's going to be hot enough.

I have a couple announcements, and then I'll get to your questions. Under Secretary of State for Economic, Energy, and Agricultural Affairs, Reuben Jeffery, is leading an interagency delegation to Tbilisi, Georgia, to assess the economic and reconstruction needs for the country. That's August 25th through 27th. The delegation includes high-level representatives from the U.S. Agency for International Development, the Department of Commerce, the Millennium Challenge Corporation, the Overseas Private Investment Corporation, the U.S. Trade and Development Agency, and USTR, and also from the Treasury Department.

During the visit, the delegation expects to meet with senior officials in Georgia, as well as representatives from the NGO community and the private sector. The purpose of the trip is to serve as a fact-finding mission, to do an assessment for the economic and reconstruction needs of Georgia since the conflict broke out there, to try to determine what the preliminary damage assessments are, and to express support for Georgia's economic development and reconstruction effort.

The goal of the trip -- I'm sorry -- the trip gives us an opportunity to move forward both here in the U.S. government, and also with our counterparts in Europe who want to support Georgia's economic and military reconstruction.

Also another important announcement today. The President made an important move in his continued dedication to improving management and conservation of our marine resources. He has sent a memo to Secretary Kempthorne, Secretary Gates and Secretary Gutierrez, asking them to make an assessment and then recommend whether to designate specific areas in the Pacific as marine protected areas. The areas under consideration include the remote islands and atolls in the Pacific Ocean -- the Rose Atoll near American Samoa, and the waters surrounding the northern Mariana Islands.

These areas are host to some of the world's most bio-diverse coral reefs and habitat, and some of the most interesting and compelling geological formations in all of our oceans. This is the first step in a process. These agencies will go out and assess the appropriateness of these areas to be considered for marine area protections.

As you know, the President has a longstanding commitment to ocean conservation and preserving our oceans for future generations. In 2004, the President issued his Ocean Action Plan to promote an ethic or responsible use and preservation of our oceans and the coastal resources. And so this is another step in that process to help to maintain these really incredible areas of the Pacific that we can do, and preserve them for -- even for sport fishing also, but also because of their uniqueness to the ocean environment.

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

MR. FRATTO: Well, I think the message he'll be bringing -- the President wanted the Vice President to visit the region to consult with leaders in this obviously strategically important region. Developments lately in Georgia have increased the importance of this visit. The President -- the Vice President had intended to visit the region for some time. He added the Ukraine to his visit, and as you know, Georgia and Ukraine are aspiring NATO members, and we support their membership. So the Vice President will be delivering America's -- the word of America's support, and also consulting on how these leaders in the region see the future playing out. Read more Comment (0), Email this.

MR. FRATTO: I'm not expecting that, no.

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

Q Tony, earlier this month, the Vice President's office said that Russian aggression must not go

MR. FRATTO: Well, it hasn't gone unanswered. In fact, I'd say it's been loudly answered both by the United States -- but really, this isn't really about the United States and Russia; this is about Europe and Russia, and our relationship with Russia and Georgia. And I don't think there's any question that Russia's reputation has suffered since it took these disproportionate military steps in Georgia. And you see that in various ways.

Now, I know a lot of people have asked the question as to what is the cost to Russia. There's been costs in terms of their reputation; there's costs in terms of the ability and willingness to do business in Russia, for example. But what we're focused on, and I think it's shown by Secretary Jeffery's trip to Georgia, is how can we best help Georgia right now, and how can we help them and support them and preserve that democracy in this critical region, and also help their economic development. Read more Comment (0), Email this.

MR. FRATTO: We're reviewing our entire relationship with Russia, both for the medium term and the long term. As I said, clearly in the short term, I think they are paying a price for the disproportionate actions that they've taken. But our focus right now is on supporting Georgia.

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

MR. FRATTO: Well, there's no question that Russia hasn't lived up to the cease-fire agreement, if that's what you're asking -- have they -- yes. You know, there are six points in that agreement, and we still see large numbers of Russian troops in undisputed territory. We still see them maintaining checkpoints. We still see the activity in Poti. So there's no question that Russia remains in violation of that agreement.

We continue to encourage them to live up to the commitment that their President made that they would fully withdraw and live up to the agreement. At the same time, we're trying to move in the OSCE monitors and try to get up to a substantial number; our goal is to get a hundred monitors in the region. That's the international mechanism that we talked about that's part of the agreement. We want to make sure that gets in place, and that all Russian troops can pull back to where they were on August 6th. So the answer to the question is, yes, we're still concerned that Russia still remains in places where they should not be.

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

MR. FRATTO: I think -- we have another civil nuclear agreement in the queue ahead of that that we're really focused on right now, and that's the India civil nuclear agreement, and that's generating a lot of work and time and energy on our part to get that done. We were able to work that through the IAEA, and now working with the Nuclear Suppliers Group and trying to get that through the Nuclear Suppliers Group and eventually for presentation to our Congress.

Like I said, with respect to our relationship across the board with Russia, we're reviewing that and we'll think about it in terms of the midterm and the long term, based on the choices that Russia makes. And we are still hopeful that Russia will make choices that will return it to its previous efforts to integrate more closely into the international economic community, into Europe, and to be a positive force in cooperation with Europe and the rest of the world.

So that's the choice that we'd like to see Russia make. And so it's less a choice of what the U.S. government or Europe and other countries make; the question of choices really falls on Russia. Read more Comment (0), Email this.

MR. FRATTO: I can't speculate on when or how that would get done. Like I said, we're focused on the other civil nuclear agreement right now.

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

MR. FRATTO: I believe Georgia and Azerbaijan had already been on their -- on the trip as they planned the trip before the conflict in Georgia. Since then Ukraine was added. Read more Comment (0), Email this.

Q Tony, I have two questions. The first one is still on Russia. Now the Russian parliament has

MR. FRATTO: Well, the status of those two regions in Georgia are not a matter for any one country to decide; they're a matter for the international community through the mechanisms at the United Nations. So those two regions are part of U.N. resolutions -- resolutions, by the way, that Russia has supported in the past. That is the force of law today. As you heard the President say last week, the two regions are part of Georgia. They're in Georgia, they're part of Georgia, as a matter of these U.N. resolutions. And that's where the matter stands.

How we go forward in dealing with the two regions and what their interests are and the interests of Georgia are should be a matter of peaceful negotiations and discussion among the parties. That's where we would like to get to. Read more Comment (0), Email this.

MR. FRATTO: I don't know. I didn't ask him whether he'll be watching. I can check and see whether he plans to or not. I'm sure there's also a baseball game on tonight, too, so -- (laughter.)

I'm sorry, John, yes. Read more Comment (0), Email this.

Q Prime Minister Maliki has made statements about the negotiations -- the status of negotiations

MR. FRATTO: Sure. I know there are always reports out there in the press and I'm not sure I saw exactly what Prime Minister Maliki said. But clearly from our perspective, we've been working with the Iraqi government for a long time on this agreement. It's a critical agreement between two sovereign countries in this region, and we want to see this bilateral agreement put in place, to take effect once the December 30th U.N. agreement runs out.

We're discussing goals. As you know, you've heard us speak about different kinds of timelines or aspirational goals that may be acceptable. I don't have anything to announce on that.

An agreement has not been signed, and so from our perspective, there is no agreement until there's an agreement signed. There are discussions that continue in Baghdad. We'd like to let them continue and to continue to show progress. What we're focused on is getting a good agreement, not getting an agreement by a particular date. So we'll continue those discussions.

Stepping back, I think what we're really pleased about is the fact that we're having these discussions with a sovereign, democratically elected country that is -- that wants to have a relationship with the United States going forward, and the fact that the only reason we can have these discussions today is because of the success of the surge. And as we continue to see security gains on the ground in Iraq, and we can have the return on success that the President talked about because of those security gains, that's a good thing for us, that's a good thing for Iraq. And so we have these mutual goals. But any decisions on troops will be based on the conditions on the ground in Iraq. That has always been our position; it continues to be our position.

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

MR. FRATTO: Apparently. I saw that. Read more Comment (0), Email this.

Q And she said, "Senator Biden is obviously a very fine statesman." She went on to say that he was

MR. FRATTO: The White House's reactions to Senator Biden being selected? Read more Comment (0), Email this.

MR. FRATTO: Obviously -- let me just say this -- I mean, for Senator Biden to be selected to run on his party's ticket for Vice President is a great honor. It's a great honor for anyone who has that opportunity to run in a national election like that, to aspire to represent the country; and so a very personal thing for him and his family. Obviously, we're -- we would be happy for him.

As for Secretary Rice, I think Secretary Rice has made clear who she intends to vote for, and that will be Senator McCain and whomever he chooses to join him on the ticket. Read more Comment (0), Email this.

MR. FRATTO: That he is a great statesman? He's done tremendous work over a long period, and I know he has been supportive of Secretary Rice's State Department.

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

MR. FRATTO: Well, I'm talking about the people in the region -- I'm sorry, of the two regions, the Georgians, and at the United Nations, just as the past discussions have been.

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

Q The Olympics closing yesterday, and coinciding with the deportation of seven -- or, eight Americans

MR. FRATTO: Well, we think over time they do have an impact. We think our relationship with China has had a positive impact on freedom and human rights in China. We would like to see more liberalization of human rights and religious freedom in Russia as -- I'm sorry, in China -- as you heard the President make clear numerous times on that trip. It was maybe an opportunity missed for the Chinese to demonstrate their willingness to be more open and to allow more freedom of speech, freedom of religion, while the world was watching. And so I would say perhaps we're disappointed that they didn't take the full opportunity that was offered to them while the world was watching during these Olympics. Read more Comment (0), Email this.

Q Tony, on the Iraq negotiations again, please. You said the negotiations aren't final, and that

MR. FRATTO: No, I'm certainly not going to get into any discussion on specifics of really any part of the agreement. That's something we try to avoid doing from the podium, and I think we'll continue to do that. Read more Comment (0), Email this.

Read more Comment (0), Email this.

MR. JOHNDROE: Good morning. The President had a rather full morning this morning, so let me run through it and then I'll be happy to take your questions.

The President started his day by recording the radio address; the topic is energy. The President urges Congress to work with him to expand domestic oil production and take meaningful steps now to address the pain caused by high energy prices.

He then heard from Secretary Rice on her trip to Baghdad and received an update from his national security team on the current situation in Iraq; that was by secure video. He then had his normal intelligence briefing after that, also by secure video. President Bush spoke to Prime Minister Maliki of Iraq. The two discussed the agreement we are currently working on with the Iraqis and agreed that our teams would continue those discussions.

After that, the President spoke by phone to French President Sarkozy. The President expressed his condolences to President Sarkozy and the people of France for the soldiers recently lost in Afghanistan. The two discussed President Sarkozy's recent trip to Afghanistan. They also shared assessments on the situation in Georgia. The two agreed that Russia is not in compliance and that Russia needs to come into compliance now.

Also, next week the President will return to Washington on Wednesday. On Friday, the President meets with the President of Tanzania in the Oval Office, and that evening the President will attend, at the United States Marine Corps Barracks in Washington, the Evening Parade.

With that, questions. Read more Comment (0), Email this.

MR. JOHNDROE: Yes, I saw that announcement. We will continue to monitor the situation, but we are not seeing that they are in compliance right now. I think it's important that they adhere to the requirements that they agreed to in the six-point plan that President Sarkozy took with him to President Medvedev that's been signed by the Russians, signed by the Georgians. And so compliance means compliance with that plan. We haven't seen that yet. Read more Comment (0), Email this.

MR. JOHNDROE: It's my understanding that they have not completely withdrawn from areas considered undisputed territory, and they need to do that. Read more Comment (0), Email this.

Q Gordon, a CNN producer outside Tbilisi saw some Russian soldiers making some slight modifications

MR. JOHNDROE: I have not seen that specific report. There are a lot of different reports coming out of Georgia right now. It's important to analyze them, assess them, determine what the hard facts are. Obviously, that sort of behavior would be not only inconsistent with the withdrawal agreement, but I believe not consistent with the standard rules of conduct. That's the type of thing that will need to be looked into.

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

MR. JOHNDROE: The agreement says that the Russians need to withdraw all troops and assets that entered after August the 6th, and that's what we expect. It's not only what we expect; that's what the French expect, that's what the European Union expects; frankly, it sounds like it's just about what the whole world expects. Read more Comment (0), Email this.

MR. JOHNDROE: They had Russian peacekeepers in South Ossetia prior to August the 6th. The agreement allows for those Russian peacekeepers to remain in South Ossetia. Anything that rolled in after August the 6th needs to leave.

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

MR. JOHNDROE: Are we done on Russia and Georgia?

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

Q Iraq. Where do we stand now? Is there a draft agreement? I mean, Secretary Rice said there was

MR. JOHNDROE: Towards the end of July, after a secure video conference between President Bush and Prime Minister Maliki, we announced that, as part of any agreement with the Iraqis establishing our future bilateral relationship, would include aspirational time horizons -- goals for when Iraqi troops begin to take over more of the combat missions in various parts of Iraq, which allow for more U.S. troops to come home.

So any discussions that are ongoing, that we are having with the Iraqis right now, include these aspirational timelines, these goals for more troops to come home.

We are only able to have these conversations now because of the security progress, the progress that has been made on the ground in Baghdad, in Basra, and all over Iraq. This progress allows us to have the conversations with the Iraqis to bring more troops home.

Five combat brigades have already returned to the United States. We expect to hear -- the President expects to hear from General Petraeus next month on recommendations for potential additional withdrawal of troops.

So these conversations are ongoing with the Iraqis right now. Read more Comment (0), Email this.

MR. JOHNDROE: I am not going to negotiate from the podium. President Bush and Prime Minister Maliki had a good conversation this morning in discussing the agreement. And our team and the Iraqi team are continuing discussions now.

I think it's fair to say -- and I think everyone understands this -- that when negotiations are hopefully coming to an end, when you can see the end in sight, there are a lot of details that have to be worked out, and I think we're in the process of working out details right now. Read more Comment (0), Email this.

Q Gordon, on the same subject -- Scott, did you -- thanks. So you're denying that there's a tentative

MR. JOHNDROE: There are still discussions ongoing. And it's not done until it's done. And the discussions are really ongoing. Read more Comment (0), Email this.

MR. JOHNDROE: Yes. (Laughter.) And ongoing and ongoing. But hopefully drawing to a conclusion. Read more Comment (0), Email this.

Q There's a report out of Afghanistan suggesting that 76 civilians may have been killed in a military

MR. JOHNDROE: I have no specific information on that. I would say that the United States and NATO have taken great steps to avoid any civilian loss of life. I would also caution on the first reports out of Afghanistan. Often the Taliban and extremist groups are very quick to get out there, and violence that they've perpetrated they blame on the United States or our allies. And so I think it's very important to assess these situations because the United States and NATO take very seriously our obligations to avoid civilian casualties.

Yes, ma'am. Read more Comment (0), Email this.

Q I wanted to ask you about the draft regulation issued on abortion, reproductive policy yesterday

MR. JOHNDROE: This proposed regulation is about the legal rights of a healthcare professional or a medical institution to practice according to their conscience. Doctors and other healthcare providers, including institutions, should not be forced to choose between being in good professional standing and violating their own personal beliefs.

Right now this is in a public comment period, and -- that the Department of Health and Human Services is running. Secretary Leavitt addressed this issue at great length yesterday, and I would refer you to HHS for any additional comments on that.

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

Read more Comment (0), Email this.

MR. JOHNDROE: Welcome. Welcome to some of our newer faces this morning. Okay, let me start off with a couple of announcements here, and then be happy to take your questions.

President Bush called Pakistani Prime Minister Gillani this morning. The President expressed his sympathies to the people of Pakistan for the recent terrorist attacks that have killed so many innocents there. The President and Prime Minister reaffirmed their mutual support for going after these extremists that are a threat to both Pakistan, the United States and the entire world.

President Bush advised Prime Minister Gillani that he had just spoken this morning to former President Musharraf and that President Bush had wished President Musharraf well and thanked him for his efforts in the democratic transition of Pakistan, as well as the fight against al Qaeda and extremist groups. President Bush expressed to Prime Minister Gillani the United States' strong commitment to working with the Prime Minister and the government of Pakistan to address the ongoing battle against extremists, and to assist Pakistan through its current economic situation.

Also, the President would like to express his profound sorrow for the tragic accident that occurred yesterday at Barajas Airport in Madrid; offers his sincere condolences to the families of the victims who lost their lives in that tragic air accident there in Spain.

And with that, I am happy to take your questions. Yes, sir. Read more Comment (0), Email this.

MR. JOHNDROE: I think you probably heard from Secretary Rice, now in Baghdad -- you certainly have some comments from her on the plane, that she made last night on the plane into Baghdad. Discussions are ongoing. We have made some progress in the recent days on an agreement with the Iraqis, but there is no final agreement yet. We will continue to have these discussions with the Iraqis.

And let me just remind everyone why we are having these discussions, why we are able to talk about the potential for more American troops to come home. It's because of the security gains that have been realized since the President ordered five additional brigades and Marines into Iraq last January.

Those soldiers and Marines helped bring additional population security, especially to Baghdad, a capital that was about to fall. The security in Baghdad allowed the government to come together and make some of the political reconciliation -- make some of the political progress that we all sought.

So the conversations that we're having with the Iraqis now are based on the improvement in security and our mutual desire to bring more American troops home. I think the President and every American wants to see American troops come home, but not until the job is done and there is more security, more political progress, and more economic progress inside Iraq. And the Iraqis want to increasingly take the lead in their own country, especially for combat missions, and they are increasingly able to do that because of improvements in the capacity and the skill of the Iraqi security forces.

Discussions continue; they are ongoing. I'm not going to get into the specifics of those discussions. But we are -- they will -- we will continue to have these with the Iraqis over the days ahead. Read more Comment (0), Email this.

MR. JOHNDROE: I'm not going to put a time frame on when we're going to get an agreement. It's more important to get it right than to get it done quickly. I think the -- you heard Foreign Minister Zebari say he wants to get it done soon. We'd all like to get it soon -- done sooner rather than later, but more important to get it done right. Read more Comment (0), Email this.

MR. JOHNDROE: I have learned in this job not to put too fine a date on anything, and I will stick with that. And as I said, more important to get it right than to rush the process. But we'll keep on working at it.

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

MR. JOHNDROE: I'm not aware of -- I'm not aware of that. Read more Comment (0), Email this.

MR. JOHNDROE: We remain in close consultation with members of Congress, the House leadership and Senate leadership, on the discussions with the Iraqis. And so they have been a part of this from the beginning. It was a commitment we made to the Congress, and we'll continue to have those consultations with them. Read more Comment (0), Email this.

MR. JOHNDROE: You know, the agreement as it's working its way through the consultative process right now with the Iraqis is not one that would require congressional -- specific congressional approval because this is the type of agreement, in many cases, that we have with many countries around the world. So it's not a treaty, so it would not require Senate ratification or anything like that. It's a bilateral agreement that would provide the authorities for our troops to operate in Iraq.

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

MR. JOHNDROE: I'd say the President has certainly been engaged in this process and has been involved in the discussions with Prime Minister Maliki, as well as with his own top advisors. But I'm not aware of Secretary Rice planning to return to Crawford. We'll continue to have discussions. We'll get -- the President will certainly get an update from her. Whether it's by phone or secure video, I'm not sure, but the President will get an update from her on her trip to Baghdad and her discussions there. And I expect that, if not later today, then over the course of the next couple days. He also wants to hear from her about her trip to Brussels and to Warsaw.

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

Q Gordon, are you aware that NATO has announced that Russia is suspending all military cooperation

MR. JOHNDROE: I think the -- for all practical purposes, military-to-military cooperation had really already been suspended with the Russians. We -- NATO cancelled some exercises. And I can't imagine a circumstance right now that we would engage in military cooperation with the Russians until the situation in Georgia is resolved.

So we will -- we are hopeful for the day that we will be able to resume military cooperation with the Russians, hopeful for the day that we're able to resume what I would call normal cooperation with the Russians. Right now the Russians are making some decisions that are not in line with a commitment to become a part of a Europe, whole, free and at peace.

So the practical effects are that there won't be any exercises for the time being. But as I said, I can't imagine a circumstance that, until the situation in Georgia is resolved, that we would engage in exercises with them. Read more Comment (0), Email this.

MR. JOHNDROE: I'm not aware of any, not aware of any. Read more Comment (0), Email this.

MR. JOHNDROE: You know what, I am not going to negotiate from the podium. I'm going to let the discussions take place, in this case, between Secretary Rice and senior Iraqis today; in other cases, between various U.S. officials and Iraqi officials. So I'll stay away from details.

The goal that both the United States and Iraq have is that Iraqi security forces are able to take more of the lead in combat missions, and the United States forces can move into an overwatch role. That has been our goal all along. The President stated that in January of '07, that we want to get to a point where, after sending more troops in, we could begin to pull more troops out. Five brigade combat teams have already come out. We'll wait to hear from General Petraeus in September on his additional recommendations, and we'll see where this goes.

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

Q Gordon, back to Georgia. There seem to be conflicting reports coming out about what's going on

MR. JOHNDROE: No. The Russians need to honor their commitment. They made a commitment to withdraw; we expect them to withdraw. The reports we have on the ground are -- if there is any withdrawal it's very limited. And there are opposite reports that suggest there are new, additional troops, or troops that may be digging in. Both of those -- if that's accurate, troops digging in -- what we know is accurate is that the withdrawal is not happening very quickly, if it, in fact, has begun. The withdrawal needs to take place, and needs to take place now.

Yes, ma'am. Read more Comment (0), Email this.

MR. JOHNDROE: Yes, Russia is in violation of the commitments that they have made. Read more Comment (0), Email this.

MR. JOHNDROE: Well, I think the first goal is to get them to honor their commitments. We need to see the Russian troops withdraw from Georgia in accordance with the agreement that they have signed. That's the first goal. So we are concentrating on that right now.

There will be further consequences to Russia's action, there's no doubt about it. But Russia has already, I think, begun to suffer some of the consequences of their actions. And their continued reluctance to adhere to the withdrawal plan only further isolates them.

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

Q In the last several days we've often heard from that podium and others that Russia's actions were

MR. JOHNDROE: Let me see if I understand your question correctly. The Russian -- the question is, did the Russians use disproportionate force -- Read more Comment (0), Email this.

MR. JOHNDROE: Okay. So, the Russians had and have peacekeepers in South Ossetia. We can understand their desire to protect their peacekeepers. What is -- what was, what is disproportionate is the systematic destruction of the Georgian military and Georgian military infrastructure, as well as civilian infrastructure. If the goal of the Russians was simply to protect Russian peacekeepers, then we do not understand why, and therefore, think it disproportionate, that they moved out of South Ossetia, out of Abkhazia, and into what is considered undisputed Georgian territory. Read more Comment (0), Email this.

MR. JOHNDROE: I think there are a lot of facts still to be ascertained about what occurred in -- August 6th, 7th and 8th, and so I'd rather not be a fact witness for that right now. We asked repeatedly -- we told both sides repeatedly, the Georgians and the Russians, don't provoke each other; there is no reason for this conflict, which has been simmering for a long time, to flare up right now. And so our focus right now is on the withdrawal of Russian troops, and for both sides to adhere to the agreement. Read more Comment (0), Email this.

MR. JOHNDROE: What is the President doing today? He made a couple of phone calls this morning, which I read out to you. He received his intelligence briefing. And he's been doing some phone calls back with advisors on the -- back in D.C. He met with Ed Gillespie briefly this morning. As you know, he -- Ed traveled with us yesterday. And then I expect he'll probably do some work on the ranch.

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

MR. JOHNDROE: Well, let me step back to the broader relationship. There is, I think, much to be gained for the entire world of U.S., and the U.S. and NATO, working together with Russia. There is much to be gained for the security of the world in dealing together with rogue states like Iran. There's much to be gained if the world works together on economic issues, food security issues, energy security issues. But -- and so working with NATO is just a component of all of that cooperation.

But right now the Russians are signaling by their actions that they're not interested in cooperation. They further isolate themselves. We are hopeful that this is a course that they have not chosen to go down permanently.

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

MR. JOHNDROE: FEMA is looking at that right now, and I will check and see if we have an update right after this briefing, and we'll let you know. Read more Comment (0), Email this.

MR. JOHNDROE: He did not stay up, I think, to the very end. But he was told this morning about the results, and you can imagine he thought it was very good. Read more Comment (0), Email this.

MR. JOHNDROE: Good morning. We're on our way to Orlando, Florida, and then to New Orleans, Louisiana and Gulfport, Mississippi. You have the excerpts of the President's remarks for the VFW, and I know you have the remarks for his speech in New Orleans. I've got one statement to make, and then I'm going to introduce Paul Conway, who is the Chief of Staff to General O'Dell, the Gulf Coast Coordinator. He's going to run you through a little bit of the day in New Orleans and in Gulfport, and then talk about the Gulf Coast recovery effort.

The United States condemns the recent terrorist attacks in Algeria, the most recent ones today and yesterday. We will continue to stand with the people of Algeria. The President offers his sincere condolences to the families who lost loved ones, and to the people of Algeria. These criminals and thugs must be stopped, and the United States will continue working with Algeria in close cooperation on counterterrorism measures.

Okay, I will be back for your questions once Mr. Conway is done. Okay? MR. CONWAY: Good morning, folks. How are you? Nice to meet you. A couple things right off the top by way of background. The Office of the Federal Coordinator that's headed up by General Douglas O'Dell was started by executive order by President Bush in November of 2005. Recently here, in April, President Bush extended that office so that the office will go beyond November of 2008 and will actually go into February of 2009. The reason why he did that is to provide continuity during a period of transition for the next President.

We see the Gulf Coast redevelopment issue as one that will go on clearly into the next presidency; that will allow the next President time to decide how they want to operate the office.

In our office we have two political appointees, General Douglas O'Dell, the Federal Coordinator, and myself, the Chief of Staff. The rest of our staff is comprised of career staff from the federal government that's detailed in, some contractors and detailees from FEMA that come into our office.

I'll hit you with two major points here to start with on strategic issues: first, on overall spending in the Gulf Coast region. On overall spending for the Gulf Coast, since 2005, that spending has been $126 billion of U.S. taxpayer funds. Read more Comment (0), Email this.

MR. CONWAY: -- $126 billion. If you add in tax credits, overall it's $140 billion. But let me concentrate on the $126 billion that's been authorized by the Congress and approved by the President.

Of that $126 billion that's been authorized, $102 billion of that has been obligated; and of that, $80 billion has been actually expended. So when you look at the number of $126 billion, at this point roughly 81 percent of that has been obligated, meaning it's actually designated to go to a certain project. This is important because the delta between authorization and obligation usually involves an actual plan being presented by a state or the federal government, like the Corps of Engineers, and that's what triggers the money flow.

The actual expenditure is then an approved contract where the money actually gets spent. And I outline that for you because there are oftentimes questions about how much has actually been authorized, what's been spent, where is the money? So you have an idea of that.

One of the things that people often ask is, with all this money being spent, who's looking out for the money? And I want to make a very serious point here, that Congress has oversight responsibility for the spending in the Gulf Coast region, and they exercise that quite well. The Government Accounting Office has done a very good job, doing a series of reports, looking at different things like nonprofit organizations, public assistance. We use a tremendous amount of their work for our daily activity.

But there's another side of this story on the federal side that should be told, and this is the extensive work of the U.S. Attorneys, David Dugas of Baton Rouge, who is head of the Katrina Fraud Task Force, and Jim Letten, who is the U.S. attorney down in New Orleans. Those two U.S. attorneys have been driving very hard on the prevention side of fraud and public corruption. They have been joined at the federal level by the Offices of Inspector General, at the federal Cabinet level.

The Offices of Inspector General work together really under the leadership of the OIG at HUD, Ken Donahue -- he's also been supported by other OIGs, including the OIG at the U.S. Department of Labor, which has a lot of funds that flow into that area. The OIGs work very closely with the Inspector General for the state of Louisiana, who is backed very strongly by the Governor. His name is Mr. Street, John Street. They also have a very aggressive legislative office in Louisiana that we work with very closely, that keeps an eye on how state funds are spent.

Supporting this continuum is the Inspector General for the city of New Orleans -- new officeholder; it was a position that was created a number of years ago and never funded. This gentleman's name is Robert Cerasoli. Mr. Cerasoli has been extremely aggressive in looking at city funding, where the money is being spent at the federal, state dollars come into the city and how the city is administering funds.

When the American taxpayer says, where is my money going, why am I being asked to spend more, what they need to know is there is a continuum of professional career civil servants that are working diligently to keep an eye on the money and to prevent fraud, and to prosecute those who are basically victimizing people a second time. David Dugas, under his leadership alone, over 890 convictions since the Katrina Fraud Task Force was stood up.

The other point I want to make here is on transparency. When folks ask, where is the money, there's a very significant portion of this money, over $13 billion, that FEMA spends on public assistance. Public assistance money is usually the money that becomes the most visible for people down in the Gulf Coast region. That means the schools, the hospitals, all these types of things. What FEMA has done is they've been very creative, starting with the school funding, and basically created a website that you can access on the FEMA website, that actually goes in and maps where the dollars are in public assistance that are going into the schools.

The reason why this was created is because of great interest among press, tremendous interest among community activists and teachers on when schools would be reopened, but really, where are the dollars that are coming into the schools at the local level. So FEMA went ahead and did this website; they've worked on it with our office. We've vetted it with GAO, a number of stakeholders. Next week they'll be rolling out additions to this website that include police stations and fire stations, a huge development for the community who wants to know, A, is it safe to move back; is there going to be a police station there soon; what's the status of it? Our office has been driving that with FEMA. We see this as a significant development for showing people where the dollars are.

At this point, three years into rebuilding, I'd characterize the rebuilding effort with three words: one of intense civic engagement, ongoing volunteerism, and a true spirit of reform in every single policy sector.

Let me highlight some of those issues. On the volunteerism side, as of last year 1.1 million people had gone into the Gulf Coast region to volunteer their time. It has gotten to be so complex to try to track volunteerism that it's become difficult for us to get hard count numbers. But we know that the level of effort has been sustained there. We see it every day. We talk to many, many people down there. Church groups around the country are doing this.

One of the most interesting developments is schools, colleges and universities that have sent down a class in 2005 and 2006. It's almost now in a lot of universities become a university tradition to go down to New Orleans, go down to the Mississippi Gulf Coast, and volunteer. I had somebody in my office the other day; we were interviewing for our team. He goes to The Citadel; he had graduated. He wanted to come to our office and work because two classes before him, his class had gone down to Alabama to help people out. We hear this all the time down in Louisiana, and all the time down in Mississippi; the schools are returning with full classes.

On the civic engagement side, the President, in 2005, said, ultimately the success of the rebuilding effort will depend upon the involvement of local officials. And this is the one thing that I think at this point is probably the unheralded story of what's really going down in New Orleans and Mississippi. You have every single sector -- the business sector, the non-profit sector, private enterprises, entrepreneurs -- all banding together in different organizations to drive change. They really do believe in the motto, "If it is to be, it is up to me." And they get very, very engaged at the federal, state and local level to find out where is the money, or what's the next thing that's going to be done.

In terms of the spirit of reform -- and I'll tick through some of these issues -- health care reform, education reform, reform in terms of public housing, how housing services are delivered, all of these are being driven very, very aggressively by folks that are non-governmental. You have the government involved, but very much you have chambers of commerce, New Orleans Business Council. In Mississippi you have business councils and chambers of commerce, all of them holding people accountable and demanding action. It's a good thing for us. It makes our job easier in the Federal Coordinator's Office.

On the levee front, this is the second strategic issue in addition to federal funding. Several major developments on the levee front. About a week and a half ago, the President and Governor Jindal came to an agreement. General Douglas O'Dell was the President's representative in negotiations with the Governor that began in May, to extend to the state of Louisiana 30 years for them to repay the non-federal share of levee construction. That cost is about $1.8 billion.

The agreement was 30 years to repay, and keep the cost share at 65-35. There had been a lot of debate about trying to change the cost share, bring it back to historic levels, but that's what the agreement was. To the state of Louisiana, what this represents is it represents their opportunity to get more economic stability in their budget, and also to dedicate funds to things that are critical to long-term protection such as wetlands restoration. It also means they don't have to make a choice between health care funding, education and that type of thing; they can go ahead and plan out their repayments. Very significant.

One point I absolutely want to emphasize: This conversation began in May -- began with General O'Dell, began with the Governor. There have been some recent reports that this was all in a reaction to a congressional visit about a month ago. That's just not accurate. They just chose not to have a public dialogue in the press about it.

One other major thing that's going on, on the levee front which is significant, right now we're in the midst of negotiations with the Corps of Engineers and the state on a project partnership agreement on Lake Pontchartrain and Vicinity. It's called LPV. This project partnership agreement will trigger a large series of PPA agreements through January of next year, and amendments that basically take the entire hurricane protection system, stand it up, get it under contract, and get it underway. From the federal standpoint, we are absolutely on target for the 2011 deadline. And we're working very closely with the state. Governor Jinal has been an excellent partner in that effort. Read more Comment (0), Email this.

MR. CONWAY: Well, the target date for the reconstruction is 2011. Read more Comment (0), Email this.

MR. CONWAY: Well, actually, let me -- I'm talking about levees, so let me be perfectly clear. The levee protection system for Greater New Orleans, that target date is 2011. If you're asking overall -- Read more Comment (0), Email this.

MR. CONWAY: Ma'am, to be quite honest with you, it's hard for me to estimate that as a federal official, because so much of this depends on how local government and state government and the feds work. Read more Comment (0), Email this.

MR. CONWAY: Well, you would literally have to look at sectors, okay. For example, on education, if you look in the city of New Orleans, education is going along quite well. Read more Comment (0), Email this.

MR. CONWAY: Well, you would have to look at it by sector, ma'am. If you're talking schools, libraries, that type of thing? Read more Comment (0), Email this.

MR. CONWAY: Housing? I can go ahead and start in on that. On the housing issue, everybody knows that there were several different delays on the Road Home program in the state of Louisiana. Now, you have -- $7 billion has been transferred in the hands of homeowners; 115,000 -- $7 billion -- 115,000 homeowners now have received the benefits of the Road Home program. In addition to that, the state is using $1.4 billion in CDBG funds for rental houses. Read more Comment (0), Email this.

MR. CONWAY: I would say there are significant portions, but literally, literally, it's not honest to say -- you know, pull out a figure out of the sky and say, X amount is done. You literally have to look by sector. Read more Comment (0), Email this.

MR. CONWAY: Okay, in the housing area, you have just about 85 percent of the pre-Katrina population estimate coming back into the city. And in terms of the actual housing itself, there's a lot of work that needs to be done still, remaining. Read more Comment (0), Email this.

MR. CONWAY: It's difficult to quantify. You have to go neighborhood by neighborhood and take a look at it, okay. Read more Comment (0), Email this.

MR. CONWAY: In terms of additional federal money, General O'Dell would tell you that he believes that there are enough resources that are in the pipeline, enough funds in the pipeline, to get the mission done. When you take a look at the money that has not been spent yet -- for example, in the city of New Orleans, $411 million in CDBG funds that could be used for housing has not been spent yet. And part of the reason why is there's a very comprehensive planning process that the city has gone through involving stakeholders and others where they have just recently come out with 17 targeted redevelopment zones. Now, that process took a very long time, and it helps determine where housing will be. Read more Comment (0), Email this.

Q But I don't understand why you cannot say what the status of housing in the Gulf Coast is three

MR. CONWAY: Well, let me be really clear about this. You went through one of the largest natural disasters, okay. Read more Comment (0), Email this.

MR. CONWAY: Well, let me just finish me answer; I appreciate it. You went through one of the largest natural disasters in U.S. history. And then you had folks that were out of housing. They moved into temporary housing; some of them moved away. So as your population starts to come back, we've gone through a tremendous amount of expenditure on temporary housing, trailers -- and we know about that -- but the transition of people from trailers into temporary housing and then into permanent housing, it is very difficult to tell you a concrete number in permanent housing, when people will be back into permanent homes, by what date. This is contingent upon your people moving back, how fast the market can actually build homes, what your availability of labor is, what your availability of supplies is to do it. Read more Comment (0), Email this.

MR. CONWAY: No, I'm not saying it's a cap. We can't predict what Congress will do. Congress may see fit to authorize additional funds. Read more Comment (0), Email this.

MR. CONWAY: From the perspective of the Federal Coordinator, absolutely. There's enough money in the pipeline to get the mission done when you look across these different sectors. Read more Comment (0), Email this.

MR. CONWAY: Well, the important point here is, restore them to be commensurate with the population that returns.

I'll give you an example. On Monday, the state of Louisiana released its master plan for schools. Before Katrina, the schools in New Orleans had an estimated $1 billion in deferred maintenance. This is before the storm. After the storm, the state of Louisiana would tell you that the impact and devastation on the schools was an additional billion dollars.

Now, you've had a large decrease in the student population. Going back to the 1970s, you see the numbers come down from over 100,000 to about 33,000 now. But that deferred maintenance was an important point, because as the school system sat back and they worked with stakeholders to figure out what would a new education system look like, what they've done is they put forward a plan that Paul Pastorak, the Superintendent of Schools for the state of Louisiana, says represents the potential for the greatest change in 100 years. What's in the plan? The plan calls for the potential shutdown or reuse, new use, of 50 different school facilities.

Now, when we talk about bringing New Orleans back to what it was before, the real relevant question was, what was it before? And it was a city that was marked by high crime, poor school performance, lack of choice for parents in the school systems. So on the reform agenda, what you see are all these sectors trying to come out to meet where they think the population will be and what the population will demand on schools -- especially parents. Parents want more choice.

You have -- over the half the schools in the city of New Orleans now are charter schools. That's an important thing. It's the most unique number in the country, okay? That shows you that there is a market; it's consumer-driven. Parents are very interested in educational excellence, and that's what they want. They don't necessarily want to go back to what was. That didn't help anybody. It was low expectations, neighborhoods with very poor school populations and not enough money to keep books on the shelves. MR. JOHNDROE: Thank you. MR. CONWAY: Thanks a lot, you guys. Read more Comment (0), Email this.

MR. JOHNDROE: Okay. Read more Comment (0), Email this.

Q Georgia and Russia. You know, you guys have spent a week, basically, telling Russia that they

MR. JOHNDROE: Well, I think we are beginning to see the early signs of some withdrawal. It is not significant and it needs to increase; both the size and pace of the withdrawal needs to increase, and needs to increase sooner rather than later.

I don't think they need any more additional time or need to set -- continue to set additional dates in the future, whether it's two or three days or whatever it is. They just need to withdraw. Read more Comment (0), Email this.

MR. JOHNDROE: I think the repercussions of Russia's action in Georgia have already been felt. And you see it in things like that we now have a missile defense agreement that Secretary Rice can sign in Warsaw today. Countries in Central and Eastern Europe do not want to go back to the way things used to be. They cherish their freedom and are not interested in a neighbor invading them. Read more Comment (0), Email this.

Q Just one quick follow-up, Gordon. The Russian Foreign Minister said essentially that the United

MR. JOHNDROE: I think Foreign Minister Lavrov is speaking quite often these days and is saying a number of things, but I don't think the United States, nor anyone has to make a choice between Russia or Georgia. Western Europe, the United States, the free world has made a choice, and that is we sought to integrate Russia into a Europe that is whole, free and at peace. We sought to work with them in the NATO-Russia Council. We sought to work with them on WTO or OECD. We have wanted Russia to be a part of the greater international community. That is in everyone's interest.

Russia is making a decision, and we certainly hope that it's not a long-term strategic decision, but Russia is making a decision that is only isolating itself. So they are the ones that have made a choice, and let's hope it's not a permanent strategic choice to continue acting in this manner. Read more Comment (0), Email this.

MR. JOHNDROE: No, I think the Department of Energy has issued a statement on that, so I don't have an -- Read more Comment (0), Email this.