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Remarks by the President / Iraq Provincial Reconstruction

Remarks by the President After a Video Teleconference with Iraq Provincial Reconstruction Team Leaders and Brigade Combat Commanders

WASHINGTON--(Business Wire)--Rose Garden

   2:12 P.M. EST

   THE PRESIDENT: Thank you very much. I had a series of good
meetings today to discuss the situation in Iraq, including a video
teleconference this morning with General Petraeus, Ambassador Crocker,
and members of the national security team. I also spoke by video with
Prime Minister Maliki to discuss the return of the Iraqi parliament
that -- it was clear from my discussions that there's great hope in
Iraq, that the Iraqis are beginning to see political progress that is
matching the dramatic security gains for the past year. There's still
work to be done, but it was a very hopeful conversation.

   Today I just had a good discussion with some of our bravest
citizens -- members of our nation's provincial reconstruction teams
and their brigade commanders in Iraq, three of whom are with me today,
along with the Secretary and Deputy Secretary. Thank you all for
coming. And the others were by SVTS, by video from Baghdad. I first of
all thanked them for the progress they've helped make possible during
the past year, and the important work that they're doing in the
communities all across Iraq.

   Provincial reconstruction teams are called PRTs, are a central
part of the new strategy in Iraq that I announced a year ago. The
strategy was built around three key elements: First was a surge of
additional troops into Iraq, with a new mission to protect the Iraqi
people from terrorists, insurgents and illegal militias; second was a
surge of operations that began in June once the troops were in place,
with new offenses across the country to drive the terrorists and
militias out of their strongholds; and third was a surge of provincial
reconstruction teams, was a civilian surge, which deployed across Iraq
to ensure the military progress was quickly followed up with real
improvements in the daily lives of the Iraqi citizens.

   Over the past year, we've doubled the number of PRTs in Iraq.
There are now 24 of these teams serving in all 18 Iraqi provinces.
Many are embedded with military units and work closely with our troops
to support their operations. Their mission is to help strengthen
moderate leaders at the local, municipal and provincial level by
providing assistance to help create jobs, deliver basic services and
build up local economies. The teams are helping provincial governments
spend their money more effectively. Across the country, these teams
are helping to bring Iraqis together so that reconciliation can happen
from the ground up.

   The leaders I met today updated me on important work they're doing
and the progress they have made. For example, our PRT leaders in
Baghdad report they have now mentored district councils and public
work departments in several neighborhoods, provided funding for
generators to help build up local markets and support a micro-grant
program to help small businesses reopen across their district in the
city.

   Our PRT leaders in Kirkuk report that they helped broker a
settlement that brought Sunnis back into the provincial council after
a year-long boycott. They also helped the provincial government
successfully execute the budget, assisted local enterprises with small
business loans, and helped establish a major crimes court in a
province -- in the province that is providing citizens with equal
justice under the law.

   Our PRT leaders in Najaf, which happens to be one of Shia Islam's
holiest cities, report that they're working with Iraqis to build a
modern airport that will allow Shia Muslims from around the world to
travel to the city on pilgrimage. The PRT leaders briefed us on the
changes they're seeing on the ground in Iraq. Because they live and
work among the Iraqi people, they see the progress that is taking
firsthand.

   Here's what they tell me: Violence across the country continues to
decrease. Tens of thousands of Iraqis have stepped forward to join
Concerned Local Citizens groups that are fighting al Qaeda and other
extremists. And as the security improves, life is returning to normal
in communities across Iraq, with children back in school and shops
reopening and markets bustling with commerce.

   Improvements on the ground in Iraq are allowing some U.S. forces
to return home. The strategy is called "return on success." It has now
begun. I don't think most Americans know this, but one Army brigade
and one Marine expeditionary unit have come home -- and will not be
replaced. And in the coming months, four additional brigades and two
Marine battalions will follow suit.

   As we withdraw these forces, we will continue to pursue al Qaeda
and other extremists in Iraq. Our enemies in Iraq have suffered blows
in recent months, but they are -- they're still dangerous. They're not
yet defeated. As we saw yesterday, when terrorists killed the leader
of a Concerned Local Citizens group, the enemy remains capable of
horrific violence. We're not going to allow these terrorists to find
respite anywhere in Iraq, and we're not going to allow them to regain
the strongholds that they've lost.

   The PRT leaders have gotten to know the Iraqi people. They
understand the vast majority of Iraqis want to live in freedom and
peace; that's what they know. You know why? Because the citizens tell
them just that. They're helping give ordinary Iraqis confidence by
rejecting the extremists and reconciling with one another so they can
claim their place in a free Iraq and build a better life for their
families.

   The men and women of our PRTs are serving on the front lines in
the war on terror. These are courageous souls. They could be doing a
lot of other things, but they chose to go to the front line where they
can make a difference in world peace. And I can't thank you enough for
the vital work you've done, and for helping 2007, particularly the end
of 2007, become incredibly successful beyond anybody's expectations.
And we believe 2008 is going to see continued progress.

   These people are helping improve the lives of citizens they've
never met before, and in so doing they're making this country more
secure, and they're helping lay down a foundation for peace. And I
want to thank them from the bottom of my heart, and I thank your
families as well for the sacrifices they have made. We are so honored
to have such courageous citizens such as yourself. And now I'll answer
a couple of questions.

   Knoller.

   Q Mr. President, what do you make of the incident in the Strait of
Hormuz with Iran on Sunday? Do you think they were trying to provoke a
fight with the U.S.?

   THE PRESIDENT: Well, Mark, we viewed it as a provocative act. It
is a dangerous situation, and they should not have done it, pure and
simple.

   Q What do you think they were up to?

   THE PRESIDENT: I don't know what I think -- what their thinking
was, but I'm telling you what I think it was. I think it was a
provocative act.

   Q What will your message be to the Fifth Fleet when you're there
in Bahrain?

   THE PRESIDENT: My message is, thanks for serving the United States
of America; we're proud of you. And my message today to the Iranians
is, they shouldn't have done what they did.

   Roger.

   Q Yes, Mr. President, the index of people buying used homes fell
more than expected in a report that came out today. And Secretary
Paulson says that the housing really has not yet reached bottom. Does
that nudge you further towards some sort of economic stimulus package?

   THE PRESIDENT: Well, you know, I'm optimistic about the economy.
I'm optimistic because I've seen this economy go through periods of
uncertainty. I mean, in the seven years that I've been the President,
we've had a recession, corporate scandals, the 9/11 attack, major
national disasters, two wars in Afghanistan and Iraq. All that created
was uncertainty, each one of those incidences, and we've been able to
come through it because we've been resilient.

   And as I said yesterday, and a couple of days earlier than that, I
am -- I like the fundamentals, they look strong, but there are new
signals that should cause concern. And one of the signals is the fact
that the housing market is soft, and it's going to take a while to
work through the downturn. The number you just reflected is an
indication of softness.

   And so what can you do about it? Well, one thing we can do about
it is to help people who are credit-worthy stay in their homes. And
that's why Secretary Paulson and Secretary Jackson have put together
what's called a HOPE NOW project, all aiming to get lenders and
borrowers and investors and counselors together to help people find
out how to renegotiate a loan, and then get it done.

   As I told the people yesterday in Chicago, in the old days you'd
walk in and borrow your -- borrow the money to buy a home, and then if
you got in a bind, you'd go back to the loan officer. Well, what
happens in these days is, you'll borrow the money and all of a sudden
that loan is sold somewhere else, and you're not sure who to negotiate
with. And so it's a much more complex world for many homeowners, and
we're helping them as best as we possibly can find out how to
renegotiate the home so they can stay in.

   Secondly, Congress needs to pass the Federal Housing
Administration Reform Act so that we can get more people better
refinancing to stay in their home. There's some practical things that
can be done. And so I'm -- we're watching very carefully, and we're
listening to different ideas about what may or may not need to happen.
And it's -- we'll work through this. We'll work through this period of
time. And the entrepreneurial spirit is strong. And, any rate -- yes.

   Q Thoughts about a tax cut?

   THE PRESIDENT: Pardon me?

   Q Thoughts about a tax cut?

   THE PRESIDENT: Well, I can tell you something about taxes.
Congress doesn't need to raise taxes, for starters. I know a bunch of
them up there would like to. They'd like to get a little more money
out of the people's pocket. But in times of uncertainty, you don't
need to be raising taxes.

   Secondly, in times of uncertainty, it seems like Congress ought to
be sending a message that we're not going to raise your taxes in the
next three years by making the tax cuts permanent. And beyond that,
we'll look at all different options.

   Listen, thank you. I'm looking forward to going on the trip. I
hope people are coming. Does any of you get to come with me? That's
too bad. (Laughter.)

   Here's what we're going to do. We're going to go over and stress
three themes. First theme is, is that it's important to lay out a
vision in order for there to be a Palestinian state once road map
obligations are met. What has to happen in order for there to be a
peaceful settlement of a longstanding dispute is there to be a
outlines of a state clearly defined, so that at some point in time,
the Palestinians who agree that Israel ought to be -- exist, and agree
that a state ought to live side by side with Israel in peace, have
something to be for. They need to have a vision that's clearly defined
that competes with the terrorists and the killers who murder the
innocent people to stop the advance of democracy.

   Secondly, I intend to work with our Arab friends and allies on
this very issue, and remind them about, one, the strategy; and two,
the obligations they have to help this vision become a reality; and
thirdly, remind our friends and allies that the United States is
committed to security in the region.

   One of the problems we have is that the intelligence report on
Iran sent a mixed signal. And I'm going to remind them what I said in
that press conference when I sat there and answered some of your
questions: Iran was a threat, Iran is a threat, and Iran will continue
to be a threat if they are allowed to learn how to enrich uranium.

   And so I'm looking forward to making it clear that the United
States of America sees clearly the threats of this world, and we
intend to work with our friends and allies to make the -- that part of
the world more secure.

   Thank you all very much. See you when I get back.

   END 2:25 P.M. EST

White House Press Office
1-202-456-2580
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