• This is a partial transcript from "Your World with Neil Cavuto," July 31, 2006, that was edited for clarity.

    NEIL CAVUTO, HOST: The president has a powerful message for Iran and Hezbollah, not-so-accidentally linked, in a rare one-on-one granted me just a few hours ago.

    Welcome, everybody. I'm Neil Cavuto, and this is "Your World," today from Miami, today with the president of the United States, talking very tough on terror.

    (BEGIN VIDEOTAPE)

    CAVUTO: Mr. President, really good to be here.

    GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you, Neil.

    CAVUTO: Thank you very much.

    BUSH: Thanks.

    CAVUTO: Reaction to the Middle East — we had a temporary suspension of hostilities. They were renewed this morning. What do you think?

    BUSH: I think — first of all, I — I think your viewers ought to focus on the fact that the U.N. Security Council passed a resolution about Iran. And the world is coming together and making it clear that — to the Iranians, that their ambitions — their nuclear weapons ambitions — are just not acceptable.

    Secondly, I do believe that we — we have an opportunity to work with our partners and allies to put a Security Council resolution in place that — that obviously reduces violence, but also addresses the root causes of the problems, which were, you know, terrorist attacks from Lebanon into Israel.

    One of the things we have got to work on in order to address the root causes is strengthen the Siniora government. We want the — that young democracy in Lebanon to succeed. And one way to help it succeed is to help the Lebanese army move to the south, and then, with help from, you know, forces from elsewhere, begin to bring some security to the region, for the sake of the Lebanese people and the Israelis.

    CAVUTO: But do you think, in light of what happened in Qana, that now there — there's more pressure on Israel to stop?

    BUSH: I think there has been a lot of pressure on Israel to stop. But Israel is a sovereign nation, and, you know, she will defend herself. What we have got to do is put pressure on the — on the — on the world to help create the conditions, so that, when there's a cease-fire, it lasts.

    See, stopping for the sake of stopping, you know, is — is — is — can be OK, except it won't address the root cause of the problem. And the root cause of the problem is armed militias firing rockets from a sovereign nation into another sovereign nation. And we want to work with the Lebanese government and other nations around the world to help deal with that issue.

    And, look, it's a terrible situation where innocent people lose their lives. And yesterday's situation was awful. We — I understand that, but it's also awful that a million Israelis are worried about rockets being fired from their — from their neighbor to the north.

    And, so, Condi is going to come back tonight and brief me about what she's — what she heard, you know, what she's — what — some of her conversations. And we will work with our allies in the U.N. Security Council to put a resolution forward that, you know, hopefully, will work, but will work in a sustain — for a sustainable peace.

    CAVUTO: But if Hezbollah's not completely disarmed, Mr. President, is it fair to say that Hezbollah has won?

    BUSH: Well, no.

    You know, I think it would be — I think, if we can get a Lebanese force down there with some — some help of — from some other nations, it is — one will be able to say that we're beginning the process of implementing 1559, which...

    (CROSSTALK)

    CAVUTO: And the U.S. would be part of that force, sir?

    BUSH: Probably not, but we would be glad to help, you know, through logistics and/or command and control. But most nations understand that we won't have troops there on the ground.

    CAVUTO: You know, Iran has paid no attention to this latest U.N.-imposed deadline, where sanctions could kick in. Do you think they're looking at the Hezbollah-Israeli situation as an excuse to sort of give excuses?

    BUSH: I think that they — you know, I think that they sponsor Hezbollah. And, therefore, I wouldn't be surprised if they're very much involved in the activities of Hezbollah.

    You know, look, this — this is a clash in governing styles. This is — you know, as these young democracies begin to grow, you find terrorist groups trying to stop their advance. That's what's happening in Iraq. That's what's happening in the Palestinian territories.

    Prime Minister Olmert reached out to President Abbas. That must frighten these terrorists. They can't stand the thought of democracies. And — and they're using their techniques and tactics, the destruction of innocent life, to stop the advance of democracy.

    And this is the real challenge of our time. And Iran and Syria are — you know, are involved. And they have got to stop doing it.

    But — and, so, today, the world sent a clear message to the Iranians on the issue of nuclear weapons, that, you know, he's not going to have a nuclear weapon.

    CAVUTO: Let me ask you, sir — I would be remiss — speaking of Iran, Hugo Chavez was meeting with President Ahmadinejad.

    BUSH: Yes.

    CAVUTO: What did you make of that, and what did you make of his travels to countries and leaders who are no fans of yours and the U.S.?

    BUSH: You know, what I care about is the Venezuelan people. And you, know, we have good relations with Venezuela for years. And I'm deeply concerned about a government that would undermine the basic fundamentals of democracy. And I would hope that the president of Venezuela invests in his people, that — there's a problem...

    (CROSSTALK)

    CAVUTO: But what do you think he is doing with all these weapons he's buying?

    BUSH: I have no idea.

    But, you know, the biggest threat he faces is under — the biggest face we threat — the biggest threat we face in the neighborhood is undermining democratic values and institutions. And it's just — we will continue to speak out on behalf of — of democracy. People deserve...

    (CROSSTALK)

    CAVUTO: Well, is he a military threat to the United States? Is Hugo Chavez a threat?

    BUSH: No. He's not a military threat. We have got a — a very strong military. And if — we can deal with any threat that — to the homeland there is, and will, if we have to. But, no, I don't view him as a threat.