Bush Angry After White House Chat Details Leaked
Administration aides say President Bush is unhappy that his discussion Monday with President-elect Barack Obama was leaked and cast as a horse trade between signing a second economic stimulus bill in exchange for congressional passage of the Colombia Free Trade deal.
President Bush is unhappy the conversation held Monday between him and President-elect Barack Obama has been cast as a trade-off between Bush signing a second stimulus package in exchange for congressional passage of the Colombia Free Trade Deal,” administration officials told FOX News on Tuesday.
In this photo released by the White House, President Bush and Barack Obama meet in the Oval Office Monday in Washington. (AP Photo/White House)
Obama asked Bush to help the sagging auto industry during their private meeting in the White House, senior aides to both men said. Bush stressed the need to work with Colombia, but to make it sound like a horse trade is unfair and inaccurate, an aide told FOX News.
The Bush administration, along with Congress, negotiated a $700 billion rescue package last month for the financial industry, but federal officials are resisting Democratic calls for a similar bailout for automakers, despite warnings that General Motors might not survive the year.
Democrats want a second stimulus that would include aid to Detroit’s big three automakers, unemployment benefits and infrastructure projects.
Bush’s desire to pass the Colombia Free Trade deal on its merits is no secret, a senior White House aide told FOX News. But that deal has been frozen by the Democratic majority in Congress.
The U.S. and Colombia are close allies, and the president wants to increase trade between the two countries. But Democrats say a deal would mean more jobs being exported, which is taboo for a party supported by a heavily unionized workforce that elected Obama.
Democrats say they also object to the human rights climate in Colombia, which union leaders have described as seriously threatening to workers. Colombia’s government says such claims are blown out of proportion and workers are protected.
The New York Times reported Tuesday that Democrats have suggested that neither Obama nor congressional leaders are willing to concede the Colombia pact to Bush and they may choose to wait to hold off on a new stimulus bill until Obama becomes president on Jan. 20.
Bush aides said the president is unhappy the conversation between him and Obama was leaked to the media at all, and insisted the two leaders were not engaged in a quid pro quo between the automakers and a free trade pact.
“President Bush did not suggest a quid pro quo. Both leaders discussed ideas for the economy. The president has long said free trade helps create jobs and opens markets to our businesses. We believe the free trade agreements can and should pass today on their merits,” said press secretary Dana Perino.
Senior aides to both men said the two issues were part of a long discussion about automakers and the ability of the trade deal to help not only the economy but also a key ally. A senior administration official suggested that Obama be careful to keep his counsel.
Deutsche Bank on Monday downgraded GM to sell from hold, with a price target of $0, saying the carmaker may not be able to fund its U.S. operations beyond December without government intervention, FOX Business Network reported.
Deutsche Bank said it believes the U.S. government will be compelled to intervene through a capital infusion or loan.
“Without government assistance, we believe that GM’s collapse would be inevitable, and that it would precipitate systemic risk that would be difficult to overcome for automakers, suppliers, retailers, and sectors of the U.S. economy,” the broker said. Even if GM avoids bankruptcy, equity shareholders are unlikely to get anything back, it added.
FOX News’ Bret Baier contributed to this report.
More at http://elections.foxnews.com/2008/11/11/obama-urges-bush-help-auto-indusstry/
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[...] Bush Angry After White House Chat Details Leaked Administration aides say President Bush is unhappy that his discussion Monday with President-elect Barack Obama was leaked and cast as a horse trade between signing a second economic stimulus bill in exchange for congressional passage of the Colombia Free Trade deal. President Bush is unhappy the conversation held Monday between him and President-elect Barack [...] [...]