Following are excerpts containing Fleischer's comments on Iraq and Saudi Arabia:

Q: Ari, there are intensified agreements to get a U.N. agreement on new smart sanctions for Iraq. Could you explain what those would -- not what they would be in specifics, but what the goal would be, or the distinction between smart sanctions and the sanctions the President then as a candidate referred to as porous as Swiss cheese.

MR. FLEISCHER: The P5 is meeting in the United Nations today, the permanent five members of the National Security Council, to discuss the sanctions policy that has been in place since the Persian Gulf War against Iraq. And the President, during the campaign, made the point that the sanctions policy had too many loopholes in it, that -- I think he called it Swiss cheese at the time -- there were so many holes in it that -- sanctions policy covered so much, so many items, that too many nations wanted to violate the sanctions policy and provide material to Iraq in violation of the sanction that was so broadly written that it invited loopholes.

So the President believed that it would be more effective to more tightly and narrowly define sanctions to those products that really needed to be denied to Iraq to stop Iraq from developing weapons, from harming its neighbors, from carrying on terrorism, and from being a state sponsor of terrorism and a military threat to its neighbors the way Iraq proved itself to be when they invaded Kuwait.

So the President believes, and so, too, does the United Kingdom, that we need to have a smarter sanctions policy that more tightly and narrowly defines the sanctions, the items that would be sanctionable, and then to make certain that those sanctions are enforced.

Q: If I may follow up. The President went out of his way in Crawford to talk about the progress he and President Putin had made on proliferation issues. Iraq generally falls under that. Can you describe in any specificity how the two leaders dealt with this issue? Because Russia has been resistant up until now to joining in this smart sanctions regime.

MR. FLEISCHER: Right, and I think you need to allow the talks in New York to continue. There has been some movement by Russia on this matter, and ultimately, what its final outcome is may take months to finally be determined. The sanctions policy comes up for review every four to six months or so. I think it's six months, specifically, but there's a preliminary period where the P5 and others at the United Nations gather to talk about it before the actual vote takes place on extending the sanctions.

And so we'll see exactly what action is taken at the United Nations. But the President is patient; the President recognizes that it's important to continue to consult with Russia and with others on changing what has been a sanctions policy that the President does not believe was successful into one that is more tightly defined, that will be more enforceable, and therefore, have more impact on Iraq.

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Q: Ari, how would you rate the level of Saudi cooperation in response to the President's call to freeze the assets of certain terrorists and suspected terrorist organizations?

MR. FLEISCHER: It remains strong. The President and Secretary O'Neill are satisfied and are pleased with Saudi cooperation on the financial front, as well as many other fronts in the war on terrorism.

Q: Then why is it necessary to send a delegation there to try to convince them to cooperate more?

MR. FLEISCHER: Yes, I saw that report and I can't confirm that there is a delegation that's going to Saudi Arabia. From time to time, there are conversations that take place with the United States and other nations about the cooperation in the war on terrorism, but that report said there is a delegation going and there's nothing like that to report. If there is some -- were to be one that is going, I would let you know about it. So I cannot confirm that report.

Q: So you can say with a certainty that the administration is thoroughly satisfied with the level of Saudi responsiveness to this call to freeze these assets?

MR. FLEISCHER: That's correct, in that the Saudi Arabian government has done everything the United States has asked it to do in the war on terrorism. And let me give you some specifics of how cooperative and helpful Saudi Arabia has been.

Whether it comes to either economic assistance to Pakistan, which the Saudi Arabian government has been very helpful in, humanitarian relief to the people of Afghanistan, where Saudi Arabia has been very helpful, intelligence sharing with the United States in the war on terrorism, Saudi Arabia has played a very helpful role in that.

I would want to remind you that Saudi Arabia was one of only three countries that had relations with the Taliban. Saudi Arabia quickly severed relations with the Taliban, in the very early stages of the war. The Saudi government played a lead role in working with the Organization of Islamic -- the OSC, the Islamic conference, as well as with the GCC, the Gulf Cooperation Council, in bringing support from a variety of those nations in the war on terrorism.

So Saudi Arabia has played a helpful role, and the President's appreciative.

Q: How much money, and how many accounts have they frozen? MR. FLEISCHER: You need to talk to Treasury to get any type of specific dollar amounts. Saudi Arabia has issued blocking orders, I know, to some of the banks that operate on the terrorism front.

Q: So his report today is incorrect? Is that what you're saying?

MR. FLEISCHER: What aspect of the report?

Q: All aspects. That the United States and Saudi Arabia are still butting heads over the freezing of assets?

MR. FLEISCHER: That's incorrect.