EXCLUSIVE: George Stephanopoulos' Full Interview With President Bush

But I grieve when I see -- when I read about the loss of life.

STEPHANOPOULOS: Tom Friedman wrote in the New York Times this morning that what we might be seeing now is the Iraqi equivalent of the Tet offensive...

BUSH: Yeah.

STEPHANOPOULOS: ... in Vietnam in 1968. Tony Snow this morning said he may be right.

BUSH: Mm-hmm.

STEPHANOPOULOS: Do you agree?

BUSH: He could be right. There's certainly a stepped up level of violence, and we're heading into an election.

STEPHANOPOULOS: So they're trying to influence the elections?

BUSH: Could be. I don't know. I haven't -- I don't have any intelligence that says that. Tom Friedman's a smart guy.

STEPHANOPOULOS: But what's your gut tell you?

BUSH: George, my gut tells me that they have all along been trying to inflict enough damage that we'd leave. And the leaders of al Qaeda have made that very clear.

Look, here's how I view it.

First of all, al Qaeda is still very active in Iraq. They are dangerous. They are lethal. They are trying to not only kill American troops, but they're trying to foment sectarian violence.

They believe that if they can create enough chaos, the American people will grow sick and tired of the Iraqi effort and will cause government to withdraw.

STEPHANOPOULOS: Your home-state senator, Kay Bailey Hutchison, said that's exactly what they created -- chaos.

BUSH: Well, I disagree with her. I believe that what you're seeing is a battle for Iraq with a democratic government beginning to grow stronger and stronger. And so I didn't hear her say that. I'll take you word for it.

But there's no question it's tough. But it's tough because an enemy wants to create enough chaos that we leave. I think she also went on to say -- I'd be surprised if she said we need to leave.

STEPHANOPOULOS: She actually said she wanted us to consider partition, which I know you're against.

BUSH: No, I don't believe -- I think that would be a mistake. I think that would create more sectarian violence. I'll tell you why. And let's -- first of all, I'm a big fan of Kay Bailey Hutchison. So if you're trying to get me to debate my senior senator from Texas, I refuse to do so.

On the other hand, I do think it would be a mistake. I think if you partitioned the country, where you've got a Sunni sector, a Kurdish sector, a Shia sector, all that will do is encourage other radical elements to come in and support their Sunni brothers or Shia brothers or their Kurdish brothers -- one.

Two, the Iraqi people don't want a partition. The Iraqi people voted for a constitution which spells out federalism that now needs to be further refined. But, we -- this is a sovereign government. This is a government of the people, which makes it quite unique in the Middle East.

STEPHANOPOULOS: I know you don't think that Iraq is in the middle of a civil war...

BUSH: Right.

STEPHANOPOULOS: ... Right now.

BUSH: Right.

STEPHANOPOULOS: But whatever you call it, aren't American men and women now dying to prevent Sunnis and Shiites from killing each other?

BUSH: No. George, I -- it's dangerous. And you're right, no matter what you call it.

The fundamental question is: Are we on our way to achieving a goal, which is an Iraq that can defend itself, sustain itself and govern itself and be an ally in the war on terror in the heart of the Middle East.

STEPHANOPOULOS: It seems like, every month, we're going farther from that.

BUSH: Well, I don't know why you would say that. I mean...

STEPHANOPOULOS: The casualties are going up.

BUSH: ... if that's the definition of success or failure, the number of casualties, then you're right. But that's what the enemy knows. See, they try to define success or failure.

I define success or failure as to whether or not the Iraqis will be able to defend themselves. I define success or failure as whether the unity government's making difficult -- the difficult decisions necessary to unite the country.

I define success or failure as whether schools are being built, or hospitals are being opened. I define success or failure as whether we're seeing a democracy grow in the heart of the Middle East.

Because a democracy in the Middle East, a society based upon liberty, will be a defeat for the terrorists, who have clearly said they want a safe haven from which to launch attacks against America, a safe haven from which to topple moderate governments in the Middle East, a safe haven from which to spread their jihadist point of view, which is that there are no freedoms in the world; we will dictate to you how you think.

I know some Americans don't think that is a threat. I view it as a threat because -- and the reason it's a threat is I can conceivably see a world in which radicals and extremists control oil. And they would say to the West: You either abandon Israel, for example, or we're going to run the price of oil up. Or withdraw...

STEPHANOPOULOS: Aren't some of the (inaudible) in the Iraqi government right now, Muqtada al-Sadr?

BUSH: The people voted for a government. And this government is going to have to perform to the will of the people. And that stands in stark contrast to the tyrant that preceded them and to the vision of those who would like to change the governments all throughout the Middle East.

STEPHANOPOULOS: Is the government format to your standards right now?

BUSH: The government is -- look, I think the guy's been in office for about four months, Maliki. In my judgment, Maliki has got what it takes to lead a unity government.

But what you're seeing is a new form of government actually beginning to evolve after years of tyranny.

I'm patient. I'm not patient forever. And I'm not patient with dawdling. But I recognize the degree of difficulty of the task, and therefore, say to the American people, we won't cut and run.

On the other hand, we'll constantly adjust our strategy to...

STEPHANOPOULOS: Exactly what I wanted to ask you about, because James Baker said that he's looking for something between cut and run...

BUSH: Cut and run and.

STEPHANOPOULOS: ... and stay the course.

BUSH: Well, listen, we've never been stay the course, George. We have been -- we will complete the mission, we will do our job and help achieve the goal, but we're constantly adjusting the tactics, constantly.

STEPHANOPOULOS: Here's what I don't get.

BUSH: OK.

STEPHANOPOULOS: James Baker's a smart guy. He's got a solid group of people on that study group. But what can he come up with that you and your military commanders haven't already thought of?

BUSH: Well, why don't we wait and see? I don't -- you know, we're not in collaboration with the Baker-Hamilton committee. I think this is a good idea, to get people outside to come and take a look.

That's an interesting question. I'm looking forward to seeing the answer.

STEPHANOPOULOS: Well, a lot of people think we shouldn't wait, and that if a change of strategy is needed it shouldn't come after the elections, it should come now.