JIM LEHRER: President Bush talked today about security gains in Iraq and possible troop withdrawals. He cited a substantial decrease in violence in recent months and he suggested that makes it more likely U.S. commanders will recommend new reductions.
The president spoke outside the Oval Office.
GEORGE W. BUSH, President of the United States: Petraeus and Ambassador Crocker caution that the progress is still reversible. They report that there now appears to be a degree of durability to the gains that we have made. A significant reason for this sustained progress is the success of the surge. Another is the increasing capability of the Iraqi forces.
JIM LEHRER: Mr. Bush also pointed to reduced deployments for U.S. forces. In turn, House Speaker Pelosi acknowledged violence is down, but she said the military surge was supposed to lead to political progress in Iraq.
REP. NANCY PELOSI (D-CA), Speaker of the House: The purpose of the surge had not been fulfilled. If you put tens of thousands more troops into a region will it bring more safety, especially with the excellence of our men and women in uniform? Yes. But why was that done? To create reconciliation. That hasn't happened. It's time for us to bring -- long overdue for us to bring our troops home safely, responsibly, and soon.
JIM LEHRER: The assessments of Iraq came as U.S. troops recorded their lowest monthly death toll of the war. For all of July, 12 Americans died in Iraq; eight of them were killed in action.
By contrast, 20 U.S. troops were killed in Afghanistan, the second highest toll since the conflict there began.
Defense Secretary Gates said today he's mulling options for sending more forces to Afghanistan. U.S. officials have said those troops would have to come from Iraq, but Gates said commanders in Iraq are not being pressed to hurry.
ROBERT GATES, Secretary of Defense: Gen. Petraeus' timeline is tied strictly to Iraq and has nothing to do with -- as far as I know, nothing to do with Afghanistan. Whether he takes the full 45 days or not, I don't know. We'll see. But I think he is making his evaluation in Iraq based purely on the ground situation, the conditions in Iraq itself.
JIM LEHRER: Gates also released a new national defense strategy today. It says the military's top priority is defeating al-Qaida and similar groups. It also says the use of force alone will not be enough.
We'll have more on Iraq right after this news summary.
U.S. military prosecutors rested their case today against Osama bin Laden's driver. Salim Hamdan is being prosecuted in the first war crimes tribunal at Guantanamo, Cuba. He's accused of giving material support to al-Qaida.
The judge today allowed statements from interrogations. He rejected claims Hamdan was coerced. The defense begins presenting its case within a week.
The former Bosnian Serb leader Radovan Karadzic was formally charged at a U.N. tribunal at The Hague today. He refused to enter any plea to war crimes in the Bosnian civil war. We have a report from Jonathan Miller of Independent Television News.
JUDGE ALPHONS ORIE, International Criminal Tribunal for the Former Yugoslavia: You are Mr. Radovan Karadzic?
RADOVAN KARADZIC, Former President, Bosnian Serb Republic: Yes, sir.
JONATHAN MILLER: So who was he going to be today? A new incarnation for the ex-new age guru, respectful, besuited, urbane, and accused of the worst war crimes in Europe since Hitler. Dutch Judge Alphons Orie summarized the charge sheet.
JUDGE ALPHONS ORIE: The indictment alleges that, between the 1st of July, 1991, and the 30th of November, 1995, you, acting individually or in concert with other Bosnian Serb officials, planned, instigated, ordered, committed, or otherwise aided and abetted a course of conduct which included persecution and terror tactics to force non-Serbs out of certain areas in Bosnia and Herzegovina.
JONATHAN MILLER: Radovan Karadzic listened unflinching. The judge said many thousands of civilians, Croats and Muslims had been killed, forcibly deported to detention camps, terrorized, and systemically executed.
Radovan Karadzic confirmed his intention to defend himself. He'd been deadly serious, but now he permitted himself one little joke.
RADOVAN KARADZIC (through translator): I have an invisible adviser, but I've decided to represent myself.
JONATHAN MILLER: Karadzic asked to read out a four-page document. The judge gave him two minutes. He used it to claim he'd been offered a deal back in 1995 by the U.S. special envoy, Richard Holbrooke: disappear and the indictment would, too.
Richard Holbrooke has strenuously denied such a deal in the past.
Then he untangled his headphones, had a drink, closed his case. The court case was adjourned until the end of next month.
JIM LEHRER: Back in this country, Sen. Ted Stevens of Alaska pleaded not guilty today to concealing more than $250,000 in gifts. The Senate's longest serving Republican appeared at the federal courthouse in Washington. He was arraigned in a brief court session.
Stevens is accused of accepting home renovations and other gifts without disclosing them. The trial will be in September, before the senator stands for re-election. We'll have more on this story later in the program tonight.
A legal fight over federal prosecutors also played out in Washington today. A federal judge ruled presidential advisers must comply with congressional subpoenas on the issue. The ruling directly applied to Harriet Miers, the former White House counsel, and Josh Bolten, the current chief of staff. The administration was expected to appeal.
The U.S. presidential campaign heated up today over charges of elitism and race. Democrat Barack Obama complained about a John McCain ad that likens Obama to celebrities and questions his readiness to lead.
Obama spoke at a town hall in Cedar Rapids, Iowa.
SEN. BARACK OBAMA (D), Illinois: Given the magnitude of our challenges when it comes to energy, and health care, and jobs, and our foreign policy, you'd think that we'd be having a serious debate. But so far, all we've been hearing about is Paris Hilton and Britney Spears.
JIM LEHRER: Republican McCain shot back at a town hall in Racine, Wisconsin. He defended the ad when a woman in the audience asked about it.
SEN. JOHN MCCAIN (R), Arizona: Campaigns are tough, but I'm proud of the campaign that we have run. I'm proud of the issues that we have -- trying to address with the American people. And, again, I would hope that Sen. Obama would join me so that we could discuss this, as he said he wanted to, quote, "duel" over taxes.
JIM LEHRER: McCain's campaign also accused Obama of playing "the race card." Obama said yesterday Republicans will scare voters by saying he "doesn't look like all those other presidents on the dollar bills." The Obama campaign said the statement was not about race.
Congress and the president may be heading for a veto fight over tobacco. The House voted last night to make tobacco products subject to the Food and Drug Administration for the first time. Supporters said it will cut smoking and preventable deaths. White House officials said the FDA is already overwhelmed with food and drug safety issues. The bill now goes to the Senate.
California Gov. Arnold Schwarzenegger today cut pay for 200,000 state workers to the federal minimum wage. He also cut 22,000 part-time and temporary state jobs. The state faces a $15 billion deficit, and the state legislature has been unable to agree on what to do.
Wall Street had a tough day. Stocks fell after the Commerce Department reported growth was weaker than expected in the second quarter. That offset a new drop in oil prices.
The Dow Jones Industrial Average lost 205 points to close at 11,378. The Nasdaq fell 4 points to close at 2,325.
