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Bush will work with Democrats on Iraq 
Even though he will carry out threat to veto withdrawal bill

 President Bush said Monday he wants to work with Democrats on compromise legislation to pay for the Iraq war even though he'll carry through on his threat to veto a spending bill that also sets a timetable for a U.S. troop withdrawal.

"I'm optimistic we can get something done in a positive way," Bush said in a Rose Garden news conference with leaders of the European Union.

The bill, which Bush has long threatened to veto, was expected to reach his desk on Tuesday. The House and Senate voted last week to approve the $124.2 billion measure, which also calls for troops to begin being pulled out in October.

Bush said that once he vetoes the bill, he's ready to work with Democrats on a new version that provides funds without strings attached.

"There are a lot of Democrats who understand we need to get the money to the troops," he said.

Democratic congressional aides said they anticipate Bush will veto the bill on Wednesday, before a scheduled meeting the president plans at the White House with bipartisan congressional leaders, including House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Harry Reid, D-Nev.

Bush said the measure includes "artificial timetables for withdrawal. But that's not the only bad thing about the bill. It also imposes the judgment of people in Washington on our military commanders and diplomats. It also adds domestic spending that's unrelated to the war.

"I have made my position very clear. The Congress chose to ignore it, and so I will veto the bill," Bush said.

On another matter, Bush said that Secretary of State Condoleezza Rice might meet with Iranian diplomats later this week on the sidelines of a meeting in Egypt on Iraq.

"Should the foreign minister of Iran bump into Condi Rice, Condi won't be rude. She's not a rude person. I'm sure she'll be polite," Bush said.

The administration in the past has resisted engaging Iran diplomatically on Iraq because of the stalemate over Tehran's nuclear uranium enrichment program. But, in recent days, the administration has signaled more flexibility.

Rice will "also be firm in reminding the representative of the Iranian government that there's a better way forward for the Iranian people than isolation," Bush said.

He called Iran "a significant threat to world peace, today and in the future" because of its nuclear weapons ambitions. He immediately amended his remarks, saying, "`today' is the wrong word—in the future. They don't have a weapon today."

Tehran insists it is developing nuclear energy to meet electricity demands, not to build weapons.

Bush said the U.S. and European leaders were together in backing enforcement of U.N. resolutions on Iran to allow inspections of nuclear facilities. Bush said that the United States and the European Union are "united in sending this very clear message" to Iran.

Bush met with European Commission President Jose Manuel Barroso and German Chancellor Angela Merkel , the president of the European Union.

On another subject, Bush said that he wanted Paul Wolfowitz to remain as president of the World Bank.

"He ought to stay," Bush said. Wolfowitz is being investigated for helping to arrange a contract to give a big salary increase to his female companion.

Bush cited Wolfowitz's work in championing programs to end poverty throughout the world.

On efforts to restart the so-called Doha round of global trade- liberalization talks, Bush said, "I'm under no illusion about how hard it will be to achieve the objective."

The leaders also said they talked about climate change and agreed to take a united approach to find ways to lower pollution that causes global warming.

"We don't want to isolate ourselves" from rest of world, Merkel said.