Sunday, January 16, 2005; Page A16

Following are excerpts of President Bush's responses during The Washington Post's interview Friday aboard Air Force One, as transcribed by the White House:

Looking ahead

I'm looking forward to the inauguration. I'm going to be able to absorb a lot more of the sights, sounds, the drama this time. I think last time I was in awe of the whole moment. Having done it once, if experience is any judge -- the convention experience is any judge about this, I'm really looking forward to kind of being as much a participant and observer at the same time -- a much more heady observer.

I'm excited about the second term. I worked hard to get there and campaigned on some specific issues that I'm looking forward to working with the Congress on. Priorities for the second term: Of course, win the war on terror, spread freedom and democracy. And at home, reform systems that will say that we have recognized we've got problems for future generations that we intend to deal with. One is Social Security; one is the tax system. As well, I'm mindful of the twin deficits we face. The fiscal deficit -- we will address the fiscal deficit in two ways: one, by submitting a budget that will continue to keep the pledge of cutting the deficit in half by five years; and secondly, addressing some of the unfunded liabilities inherent in the fiscal budget.

In terms of the current account deficit, the best way to deal with that is to, one, ensure that currencies around the world are market-driven, not controlled by states; and secondly, at home, is to make America an attractive place for people to take risk, a place to invest.

On an intelligence report calling Iraq a terrorist training ground

The report -- and I welcome these studies -- basically says America must stay on the offense. And there are two ways to stay on the offense. One, use our intelligence services, as well as the intelligence services of friends and allies, to find people and bring them to justice before they hurt us; and secondly, to spread freedom. And it's a -- I think the report was somewhat speculative; this could happen. And I agree. If we're not diligent and firm, there will be pockets of -- parts of the world that become pockets for terrorists to find safe haven and to train. And we have a duty to disrupt that.

Secretary of State Colin L.Powell's assertion that U.S. troops will begin leaving Iraq later this year

The way I would put it is, American troops will be leaving as quickly as possible, but they won't be leaving until we have completed our mission. And part of the mission is to train Iraqis so they can fight the terrorists. And the sooner the Iraqis are prepared -- better prepared, better equipped to fight, the sooner our troops will start coming home.

Accountability for Iraq

Well, we had an accountability moment, and that's called the 2004 election. And the American people listened to different assessments made about what was taking place in Iraq, and they looked at the two candidates, and chose me, for which I'm grateful.

Listen, in times of war, things don't go exactly as planned. Some were saying there was no way that Saddam Hussein would be toppled as quickly as we toppled him. Some were saying there would be mass refugee flows and starvation, which didn't happen. My only point is, is that, on a complicated matter such as removing a dictator from power and trying to help achieve democracy, sometimes the unexpected will happen, both good and bad.

And the point is, there has to be a flexible strategy that will enable our commanders on the ground and our diplomats to be able to adjust strategy to meet the needs on the ground, all aiming at an eventual goal, which is a free and democratic Iraq, not in our image, in their image, according to their customs. See, we haven't been -- we've been there -- sovereignty was transferred in June of 2004. So this has been a sovereign nation in its new form for less than a year. I'm optimistic about it, and so are a lot of other people who were there in Iraq -- optimistic about that, being optimistic about the emergence of a free government.

I'm also mindful that it takes a while for democracy to take hold. Witness our own history. We weren't -- we certainly were not the perfect democracy and are [not] yet the perfect democracy. Ours is a constitution that said every man -- a system that said every man was equal, but in fact, every man wasn't equal for a long period of time in our history. The Articles of Confederation were a bumpy period of time. And my only point is, is that I am realistic about how quickly a society that has been dominated by a tyrant can become a democracy. And therefore, I am more patient than some, but also mindful that we've got to get the Iraqis up and running as quickly as possible so they can defeat these terrorists.

Why the United States has not captured Osama bin Laden

Because he's hiding. . . . Look, bin Laden is elusive, and he is in a remote part of the world. And we are -- I am -- I can't think of anybody in the world who is our ally who isn't willing to do what is necessary to try to find him. And so I am pleased about the hunt, and I am pleased that he's isolated. I will be more pleased when he's brought to justice, and I think he will be.

Anti-Americanism in the Muslim world

The people of Afghanistan, which is a part of the Muslim world, are really happy that the government of the United States, along with others, liberated them from the Taliban. I suspect that people in the Muslim world, as we speak, are thrilled that supplies are being delivered by U.S. servicemen and women. The Iranians -- the reformers in Iran are, I suspect, very hopeful that the United States government is firm in our belief that democracy ought to spread. In other words, there are some places we're not popular and other places where we're liked.

And there's no question we've got to continue to do a better job of explaining what America is all about; that in our country you're free to worship as you see fit, that we honor the Muslim faith, and that if you choose not to -- we don't want territory, we want there to be freedom. And I've talked to Condi [national security adviser Condoleezza Rice] about this, and she agrees that we need to work on a public diplomacy effort that explains our motives and explains our intentions.

The District of Columbia's $12 million tab to provide security for the inauguration

The inauguration is a high-profile event, like a lot of other events that, unfortunately, in the world in which we live, could be an attractive target for terrorists. And by providing security, hopefully that will provide comfort to people who are coming from all around the country to come and stay in the hotels in Washington and to be able to watch the different festivities in Washington and eat the food in Washington. We've got people coming from all around the country, and I think it provides them great comfort to know that all levels of government are working closely to make this event as secure as possible.

The prospect of cutting Social Security disability or survivor benefits

Well, as I said, we have no plans for cutting benefits.

The severity of Medicare's problems vs. those of Social Security

Well, the difference, of course, is that in Medicare, we began a reform system that hopefully will take some of the pressures off the unfunded liabilities, and that is providing, for example, a drug benefit, that will, hopefully, in cases, replace the need for surgery. I used to tell people a lot on the campaign trail that Medicare would pay for the heart surgery but not for the medicine that would prevent the heart surgery from being needed in the first place. Heart surgery costs nearly $100,000, and the medicine could be $1,000. And that's a reform that not only reflects the new nature of medicine, but it's a reform, hopefully, that has cost benefits.

. . . Secondly, one of the things we did, we began to provide a market approach to Medicare, by allowing seniors choice. And the more choice consumers have, the more likely it is some costs will come under control. We've just begun the reform process in Medicare, and that hasn't been the case in Social Security. . . . I think, definitely, we're going to have to make sure that in the long run, the baby boomer bulge is addressed in Medicare, as well.

Support for a constitutional amendment banning same-sex marriage

You know, I think that the situation in the last session -- well, first of all, I do believe it's necessary; many in the Senate didn't, because they believe DOMA [the Defense of Marriage Act] will -- is in place, but -- they know DOMA is in place, and they're waiting to see whether or not DOMA will withstand a constitutional challenge. . . . The point is, is that senators have made it clear that so long as DOMA is deemed constitutional, nothing will happen. I'd take their admonition seriously.

Support among black voters

Listen, I am -- when we worked on the No Child Left Behind law, part of what motivated me on that law, and part of what motivated me as governor to insist upon accountability is I fully understand that oftentimes it was the inner-city black child who just got moved through, and the system just quit on him or her. . . . There's been some amazing statistics during my time as president. More minorities own homes than ever before, which is -- I'll continue to promote an ownership society. I believe the more somebody owns something, the more likely it is that they'll be independent from government and have a prosperous life. The Social Security issue is an interesting issue when it comes to African Americans. After all, the life expectancy of African American males is a lot less than other groups and, therefore, if you really think about that, you have people putting money in the system that aren't -- families won't benefit from the system. And, therefore, it seems to me to make sense, if I were a part of a group of people that were being disadvantaged by the Social Security system, that I'd at least like to have the opportunity to have some of the money I put in the system passable to my family.

And so my point to you is, the policies that we have put forth in this administration are, I think, beneficial to all. And as to why that message hasn't made it through, I don't know, I'm not a pundit.