ahead. >> i do have something for you on that. the administration has taken the position and how was start follow-on agreement negotiations with russia next issue of missile defense and strategic offensive reductions should be dealt with independently. these are two different issues. we have made no final decisions regarding basing missile defense in europe, which will be based on an assessment of the threat to the united states and its allies. if that threat disappears, that will affect our decision on the need to move forward with missile defense. delegations from the united states and russia are conducting talks in geneva today and tomorrow, i believe. yes, june 22nd. today through wednesday. and they will be discussing a variety of issues related to the

start fall a wan treaty. you know that on april 1st in london at their first meeting president obama and president medvedev agreed that bilateral negotiations should start right away with the objective of achieving a new comprehensive legally binding agreement on reducing and eliminating strategic offensive arms and that the u.s. and russia would seek to record and a new agreement levels of reduction that will be low word than it in the moscow treaty. >> do you have specific numbers yet on those two areas? >> they're talking about specific numbers but i'm not one to talk about specific numbers. we do want to have a significant reduction though >> north korea. could you update the situation with north korea vessel in the chinese see tracked by the u.s. navy and do you have any plan to ask permission to the vessel to

make interdiction? >> i'm not going to be able to tell you any more than i told you on friday. i think you saw what secretary gates and admiral mullen said last week. i'm not going to go into any details of any specific ship, except that, of course, as always, we call upon north korea to refrain from provocative actions. what we are focused on especially here at the state department is we are focused on a vigorous enforcement of a puzzle bush and 1874. and of course, ship inspections are an important element of this resolution. and we also call upon other u.n. member states to enforce 1874. >> on taiwan, and i read an article on defense news talking about taiwan plans f-16 upgrade.

so what is your position on this -- >> you have to ask the defense part about that. >> thank you. >> you wanted something on the record, is that it? go ahead, ask. >> he won't answer. [laughter] >> on israel i was wondering what your that puts tens of millions of dollars for new construction in the west bank and in jerusalem. >> i will see if i can get more information. >> when you talk about the natural growth in settlements this that include any jerusalem neighborhoods that are over the green line? >> we call for a cease to all settlement activity. >> including jerusalem. >> we are talking about all settlement activity, yes, in the area across the line. >> thank you.

>> the fcc should be a model for transparency and openness.

next a look at the administration's cash for clunkers program. the measure will offer consumers who treat high fuel consumption vehicles cash vouchers toward the purchase of and more fuel efficient car from today's washington charnel this is 25 minutes >> host: corey boles covers congress for dow jones newswires and also appears in "the wall street journal" and we are here this morning to talk about the cash for clunkers provision that was part of legislation passed last week in the senate. what is this going to mean to the auto industry? >> guest: i think what the lawmakers hope it means is a boost to flagging sales. as we all know the sale of the auto industry, chrysler, gm and large extent ford are facing this recession so but this would do is essentially provide cash incentive to people to trade and

older and heavier vehicle and buy new cars off the lot so they get rid of some of the huge backlog of cars that exists right now. >> host: you had a good graphic company in an article you did last week with your colleague at "the wall street journal," john schmidle, about what the provisions would do and have a look at it here. the requirement for the trade in, if it's 18 miles a gallon or less is 1984 or after you can treated in. but you have to get, like, for a new car at least 22 miles per gallon, and then $4,500 subsidy. if it's less than 4 miles per gallon, 3500. >> guest: it's at least 4 miles, but 3500 if it is at least 10 miles improvement -- >> host: have they done any projections on not just in terms of what this would mean for the auto industry but what about for the environment? what about pollution standards?

>> guest: this is one of the most controversial aspects. it is only a 4-mile per gallon improvement which isn't that much improvement. there was an alternative to legislation promoted by senators feinstein in california and of maine and their plan would have been much more rigorous and have a much larger increase in terms of miles per gallon efficiencies. they argue all it really is is another bailout industry. >> host: what if i had a truck or else you need is a different requirement? >> guest: it is different requirements for what you what acquired but as long as it satisfies the 18 miles or lower and owned for more than i hear the trucks would be able to qualify as well. >> host: corey boles with us for half an hour or so. 202-737-0001 for republicans, 202-737-0002 for democrats, 202-628-0205 and others

independence. how would this be signed into law? >> the president should sign it into law in the day. as it touched a war funding bill which is the nec controversy apiece of legislation so he wants to get that sent into the law as quickly as possible to make sure there's money for the troops in afghanistan and iraq the next couple of days and then it will take effect july 1st. >> there was an article friday about the passage of that legislation. they write the article several other countries had success with this type of legislation. what do you know about that? >> the one often referred to was in germany enacted last year and they did see a sharp spike in all the seals like 20% in the first quarter of last year. there is controversy about that because some say this year sales have ticked up that much more sharply, i.e., last year people bought cars earlier as opposed

to the overall increase in the number of cars sold. i think the economists are going back and forth whether that is the case or not. >> host: if you have questions, corey boles is the man the next half hour to take phone calls. columbus indiana, good morning to maryland on the democrats' line. >> caller: yes, i just traded negative chevy and bought a dodge in december, dodge caliber, 2007 and this car has been in the shop more than i've driven it and i have $30,000 in this car and i am at my wit's end. can you help me? thank you. >> guest: technically speaking you could benefit from this program because if you bought it in december unit for a year in terms of the problems with your buick itself by guess you have to call your local in terms of the latest word you go to the dealer with your car, you don't

really -- it's not a trade in because they are not been to take it. >> guest: they are going to get a scratch feed and although there's a different rate for scratch as opposed to buying a used car, so the dealers will get compensated from the government structure program. they also then sell your car for scrap but that is the key to the program to read these older cars won't be back on the road. >> host: this is true in syracuse new york. welcome. >> caller: yes, i have a question that basically relates to be a year. we are trying to motivate people with a tax incentive on this. why don't the democrats start buying smaller cars? rachel tribes 84 we'll talk and biden joins a trip that gets 16 mpg. is there a reason these people couldn't go out and buy a car that gets 40 miles per gallen

therefore doubling their gas mileage and cutting co2 in half and cutting the importation of gas and have? why do we need tax incentives when the democrats themselves should be driving small were cars? are democrats embarrassed to drive smaller cars? >> i suppose it is a fair point to inspire people to buy smaller cars. >> host: he mentioned several foreign makes of cars and an article in the business section of "the new york times" says they benefit from detroit financial rhodes. as detroit competitively positioned to take advantage of the cash for clunkers and offering high mileage vehicles as well as some of the foreign competitors? >> guest: i think it is fair to say that each point is going through the process of reorganizing the product lines and bringing smaller cars. i don't think that this program is cui to benefit the next

generation a short-term stimulus so what is out there now the benefit but a lot of the larger traditional vehicles won't benefit. >> host: was there much opposition to the house and senate? >> guest: i think there was. the environmentalists were opposed to this because they didn't think it didn't to help the environment. there are fiscal conservatives opposed with another billion dollar add-on. but there's enough supporters in the auto industry and congress and folks who view the problems as i can to the u.s. economy that it got through reasonably smoothly. >> host: also any way to understand how they are going to track how successful this is? >> guest: it would be difficult because it would be administered by the dealers said they presumably won't pursue defaulters and keeping tabs to figure out how many are shifted.

it's crucial to know this is almost a trial for the program. there's a billion dollars added to this bill. the estimate is the full program would cost 4 billion so this is for july until at october. there will be another debate in congress than whether or not it was successful the first three months and if they want to review again. >> host: windsor vermont, greg on the independent line. >> caller: im and although mechanic, independent, have my own business and this little project they are throwing out, the bottom line is the american public, we have more money, number one. number two, the first comment, the leedy commenting about the problems, we have competed against the japanese and the bottom line is the american public is so dissatisfied with american made cars we have to go

to the research and development as an auto mechanic i see this time and time again the dealerships, the service departments are terrible. people are dissatisfied. they are not going to buy american made cars. keep going back to the european media goals and i feel that -- people with cars that are gas guzzlers have more money, that's why they own those. if they're fortunate to buy a new vehicle, then they are dissatisfied with american made cars. it's called the control. we need to go to research and development and compete against the japanese and that's the bottom line as an automotive mechanic i know what i'm talking about. >> host: thank you. any thoughts on his comment? >> caller: yes, they're have been examples of this abroad in europe especially in the there

is no telling what is going to happen as the call said there's people suffering and maybe 3500 isn't going to be enough to get them a new car. >> host: he brought up the point folks that have some of these so-called clunkers and getting 35 or $4,500, while that is helpful they may not be in the range they could afford a car. >> guest: 3500 won't make a difference. >> host: is this just to buy a new car or could i buy a used car that gets mileage? >> guest: that is a controversial aspect senator feinstein and others are pushing for this to allow for used cars but as it exists it is only applicable to new cars. >> host: which is in minnesota on the republican line, welcome. >> caller: there's a technology of out there i talked to the guy at excel energy getting 60 miles per gallon. you take two metal plates and

submerge them and water, 12 bolten battery and it starts bubbling like seven-up. the bubbles are flammable gas made from water. this technology has been a around for years and i cannot believe they are not pushing this. it's an all some idea. it worked. you can make flammable gas of of water with a 12 flecha battery. >> host: thanks for the input. independent line, good morning. >> caller: largest want to call and say i have an '85 dodge pickup with a legendary system it gets 22 miles to the gallen and weighs 5,000 pounds and can gross 8,000 pounds. it's only 90-horsepower but yet it is way more dependable than any on the road now and it was made in america and puts food on the table. i refuse to buy anything from

japan or korea. absolutely not. >> host: thanks for the call this morning. >> guest: i think when thing people should be aware of is that foreign automakers are huge employers especially in states like alabama and missouri, toyota, honda etc employee americans so we are not just talking about cars made in japan or elsewhere and imported in the u.s.. these people are built in large factories and in the rapidly expanding employers of the u.s.. >> host: michigan, up next for corey boles on the democrats' line. >> caller: yes, i am worried about -- i know that human nature, people to get advantage of the situation. is there any danger people taking advantage of the government program and also i would like to ask you, corey, how long does it take in the morning to cut your own hair?

>> guest: there's always an advantage, people taking the risk of government programs. there's a lot of waste of their. that is one way to see -- >> host: and there's a billion dollars that is a limited time frame, a limited amount money that is >> guest: depending on the success of the go or not there will be the renewed coming to perhaps change the standard, change hauer it works but the basic principle i think is support out there. >> host: here is lehigh acres, good morning. >> caller: good morning. this is the first time i have ever been able to get on the program. >> host: glad to have you. >> caller: let me explain something. there are no jobs, there is no money. people who can't afford this will not be able to afford it.

it is into going to work at all to help people get jobs. the problem is the converse. tom coburn has it right. he said in a meeting we are the problem. that means congress is the problem and they are and the point is this. an overtaxed manufacturer until they left the country. now if they want to come back they are going to tax them or leave the country. if people would leave liberty and tierney to figure out because was so many of the youth are not even talked about the country. what it means to be in our country. >> host: she mentioned senator tom coburn has been critical.

what was his position on the cash for clunkers? >> i have to check. i think he may have voted for this but it's attached to a much larger bill than often happens in congress where everything is controversial. >> host: the at obama administration said they were not going to have these supplementals spending bills on a larger issue beyond cash for clunkers, is that the end of it? are we going to see more of these types of big catch all? >> guest: this is what they are saying, the last in the future starting from 2010 they are going to add the cost for funding the war to the public books. so i would be very shy to say this is the last catchall large spending bill in congress because that is what the congress does. >> y s. con. res. reluctant to take something, something like the cash for clunkers and debate that as a separate measure?

>> guest: i don't think that was the instance. i think there was widespread support despite some on the fiscal conservatives. i think what they were trying to here is support for the more funding bill and there's other controversy aspects to that which have especially for republicans and i think part of it was adding it on to this and also this being the last catch all the spending bill for a while they needed to allocate the funding and wanted to get it going as soon as possible so it kind of made sense on that point of view. >> host: so the billion dollars on cash for clunkers is the 2009 spending? >> guest: we are talking the current fiscal year. >> host: massachusetts good morning to charles on the independent line. >> caller: good morning. i would like to find out stipulation between this bill, the automobile has to be made in america by america, not before

in imports even though it may be eight leota as long as it's built in america. >> host: is there a stipulation in the bill? >> guest: there were attempts to attach but there's plenty of world trade organization issues that the u.s. can't start -- difficulty to tie that kind of language to legislation. >> host: good morning on the democratic line. >> caller: hello, can you hear me? excellent. i'm from virginia and the last call actually asked what i wanted to ask about the car having to be made in america. i and dr. a kia and i'm going to drive it for ever it's lasted me so long. i was thinking it would be great if u.s. car manufacturers could pair up with some of their

competitors because we could learn a lot. also this program i guess there is environmental and economic benefits. with this program take care of those huge trucks you see out there billowing smoke, the large multi wheeled trucks that carry material across the country and one of? with this program do something about all the smoke they are putting out? >> to the first point about u.s. manufacturers teaming up with foreign companies this is what we are seeing in chrysler they have been affected by the italian car maker of renowned around the world for making small efficient vehicles. we will see if it is a success but its bringing its technology into the u.s. to lead to the second point this wouldn't affect commercial vehicles. it's purely a mechanism to

stimulate car sales. >> host: the commentary clarke writes cash for clunkers those kia writes what he sees as the problem with the bill. he says the main problem i think is one that was pointed out last week by law and that it is poor but targeted, you can trade in an sec that gets 70 miles and by one that gets 19 miles with 3500. >> guest: it's a point of view this it aims at helping the auto industry. i guess it's gotten to the point of view that if you sink this is an attempt to clean up the environment you may be disappointed. >> host: good morning, carol and republican. >> caller: good morning and thank you. i'm concerned about as americans stepped into these high gas mileage cars they save 1.8, was

going to make up the tax revenue that comes from that gasoline that we use? we are going to lose all that revenue somebody is going to have to step up somewhere and i wonder if you can give me a little bit of light on who is going to make up those taxes. >> guest: i think that cutting gas imports as you are probably aware the u.s. gets a lot of its gas from the middle east, canada, elsewhere. that's kind of a part of the obama administration's motivation if they want to encourage alternative energy, wind, solar, etc. so i think they would argue that it isn't a bad thing and would be more than enough money, the tax would be made up from other countries taking the place. >> host: lexington kentucky on the democrats' line. >> caller: it was already

mentioned about the suv in the bill, the 17 miles per hour to 19. i think we are just defeating the road the president wants to take and i underestimate the concourse. i mean, the leadership doesn't seem bright and you talk about the war spending bill. i understanding there were some expenditures and for aircraft carriers or something that secretary of defense had already knocked off the spending. is that right? >> guest: there was a lot of spending on military construction purchasing new military vehicles, aircraft navy vehicles etc. but to the extent

there was kind of a degree the purpose is every time you get one of these large and boris gindin bills there's a lot of back-and-forth which particular program should be funded and that is the reason it took two months to get this done was various lawmakers representing the constituents wanting the programs included. i'm not familiar to that particular but there is a lot of buying of planes and trains and automobiles. >> host: the bill just passed and hasn't been signed yet. so this may be premature. there's an article in this section of "the wall street journal" about general motors and their ad by holding steady. are they likely to take advantage of this passage of this bill and drive advertising along the cash for clunkers program or is this something the federal government will promote? >> guest: there's no money but i'm aware of to spent on promotion. i wouldn't be surprised if gm and others with such a huge

success pledging to revive the car if someone lost their job. i think they will take anything right now to deal to drive sales. >> host: one more call, india, john good morning independent line. >> caller: good morning, a quick question. is their anything in the bill that prevents the auto dealers from regulating the price from 3500 or 4500? that is one of my concerns of the are going to take advantage instead of saving money getting a good deal they are going to make more money off of it. >> guest: there is language in the bill tightly controlling the activities with the auto dealers are required and not required to do. i don't -- it's a long bill and i haven't read every word i must confess i'm comfortable there is going to be restrictions to increase the sticker price. >> now that the bill has wrapped up in the cash for clunkers what is the next story that you were

covering? >> thankfully it's very complicated by don't do much of the health care which is the only story on the hill these days. right now congress is working its way through the 2010 spending bills to keep the federal government going. there's plenty of stories hidden on page 700 or so i'm busy plotting through the spending legislation to find out what is being spent. >> host: we appreciate you joining this morning. corey boles writes for down jones newswire and sometimes you can read his work in the "wall street journal." thanks for being with us. >> guest: thank you. ..