*EPF203 05/06/2003
White House Report: Bush, Goh Sign U.S.-Singapore Free Trade Agreement
(South Asia, Iraq/WMD/money/France, Daniels resigns) (960)

President Bush met with Prime Minister Goh Chok Tong of Singapore in the Oval Office May 6 and then the two signed the U.S.-Singapore Free Trade Agreement in a ceremony in the East Room. The White House calls the free trade agreement a "landmark achievement."

White House Press Secretary Ari Fleischer said prior to the events that Singapore is a strong partner in the war on terrorism and a member of the coalition on Iraq. The two leaders planned to discuss further strengthening their already strong bilateral relations, he said.

MOMENT OF "GREAT HOPE" BETWEEN INDIA, PAKISTAN

Asked about the current trip to India and Pakistan by Deputy Secretary of State Richard Armitage, Fleischer responded, "This is a moment of great hope between India and Pakistan. There has been marked progress, opening of diplomatic relations again, transportation routes are opening again, and discussions are beginning between India and Pakistan. This is a moment of hope. Deputy Secretary Armitage is on his way to the region. The United States will continue to do everything we can to help build more momentum for more hope and better days between the Indian people and the Pakistan people."

BUSH REPEATS THAT SADDAM HUSSEIN HAD WMD PROGRAM

President Bush says he would not be surprised "if we begin to uncover the weapons program of Saddam Hussein -- because he had a weapons program. ... We also know he spent years trying to hide the weapons program. And over time the truth will come out and the American people will see that when we ... got him out of power, we made America more secure."

Bush was responding May 6 to a reporter's question alleging that Defense Department officials are now saying they are confident they have found a mobile biological lab in Iraq.

Bush spoke briefly with reporters following a meeting in the Oval Office with Defense Secretary Don Rumsfeld at which Bush named Ambassador L. Paul Bremer as the presidential envoy to Iraq.

Rumsfeld, asked about the mobile lab, said "I like the president's answer."

WHITE HOUSE CONCERNED ABOUT MONEY TAKEN FROM IRAQ

Asked about an article in the May 6 New York Times stating that one of Saddam Hussein's sons and a close advisor to the Iraqi dictator carried off, at the dictator's request, nearly $1 billion in cash from Iraq's Central Bank just prior to the start of fighting in Iraq, Fleischer responded that while he could not confirm the specifics of the article, "it is not surprising that Iraqi leaders would try to loot their country, get ill-gotten loot from the people into their own hands, and try to flee the country with it.

"That would fit very much the type of leadership that Iraq suffered from, where money that belonged to the people that could have been applied to health care, to hospitals, to food has been diverted into the hands of crooks.

"And the United States is committed to doing everything possible through our various channels -- we have many -- to try to find out where this money has gone, and try to get it back for the Iraqi people. Often it is difficult in the international world of finance, but this government is committed to trying to make that happen."

NEWSPAPER REPORT THAT FRANCE AIDED FORMER IRAQI OFFICIALS

Asked about a report in the May 6 Washington Times that the French government secretly supplied fleeing Iraqi officials with passports in Syria that allowed them to escape to Europe, Fleischer said he could not confirm the report.

"I think the French will have to explain what they did or did not do," he told reporters.

Fleischer noted that a spokesperson for the French government quoted in the article said nothing like that would have occurred since the war began.

"And I know that you have the ability to ask follow-up questions to French authorities and dig into this matter," Fleischer told the reporter asking the question. "There's nothing more. I indicated I can't confirm that report, so I don't have anything more to offer on it."

"France formally denies this type of allegation, which is not only contrary to reality but is intended to discredit our nation," Nathalie Loiseau, a spokeswoman for the French Embassy, was quoted in the article as saying. "It is certainly time for rumors of this type -���� totally unfounded and a dishonor to those who spread them -���� to stop," she is reported as saying.

WHITE HOUSE BUDGET CHIEF MITCH DANIELS RESIGNS

Mitch Daniels, the Director of the Office of Management and Budget (OMB), tendered his resignation May 6, informing the president in a letter that he will be leaving his position in 30 days.

Fleischer did not discuss Daniels' reasons for leaving, although he told reporters that Daniels was not asked to resign.

President Bush "tremendously appreciates Mitch's service to our country. The president views Mitch as a very strong manager, a very able leader, and a wise steward of tax dollars. During these next 30 days, Mitch will continue to do his work to help the president make progress on his economic plan," Fleischer said.

Daniels' successor has not yet been named.

President Bush told reporters that "Mitch told me that he wants to go back home to the state of Indiana and perhaps pursue a run for political office. ... He has served us well. He has been a really good watchdog of the taxpayers' money. And, you know, I'm going to miss him. On the other hand, this administration's loss is the gain of the people of Indiana."

(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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