DAVID GREGORY: Start by taking me back to that morning, and tell me where you were and how you first learned about all that.

KAREN HUGHES, COUNSELOR TO THE PRESIDENT: Well, first, it was a completely unusual morning for me because normally, on any weekday morning, I would have been either with the president most of the time or at the White House, and I was neither. September 10th is my wedding anniversary, and so I stayed -- the president had gone to Florida and -- it was a hard decision for me, because education was so important to him and it was an important trip. And -- but I stayed in Washington so that I could go out to dinner with my husband for our wedding anniversary. So I was not in Florida with the president.

And in fact, I was going to represent the White House at a Habitat for Humanity house event that Secretary Mel Martinez was having that morning. So I had my blue jeans and my Habitat for Humanity T-shirt on. It was in my neighborhood, so I stayed home to just head straight over there, and I'd been on the phone with the office.

And as I was walking out the door about quarter to 9:00, or 10 to 9:00, I guess, my phone rang and it was my assistant. And she said, Karen, a plane has hit the World Trade Center. And they thought it was a small plane at the time, and that was the way she conveyed it to me. And so, of course, my immediate thought was what a terrible accident, but you know, the pilot must have gotten sick or had a heart attack or a terrible accident.

So I immediately called my deputy, Dan Bartlett, who was in Florida with the president, to make sure the president knew. And he had just been told. And so, you know, we started talking about should we go on with the -- you know, we needed to assess how bad it was, should we go on with the event at the school. We needed to call the governor of New York, the mayor, you know, to express -- to offer the federal government's help in -- we knew, you know, even when we still were hoping and thinking that it was an accident, we knew it would be devastating for a plane to have hit one of those towers.

So we began planning our response. And I had the tel -- I had turned the television set on so, like most Americans, I actually saw the second plane hit the tower. And my first reaction was to drop to my knees and say a prayer for our country, because I realized immediately, like everyone did, that this was no accident, this was a planned attack.

And then I spent most of the next 45 minutes to an hour on the phone with the folks in Florida as you know, we cancelled the event there, and when they took off from Florida, I was under the impression they were coming back to Washington. That's what we all talked about, that's what we thought: the president was coming back to Washington.

And then I was on the phone with my assistant when they evacuated the White House. I remember she said, Karen, I've got to go, they're yelling at us to get out of here. And I said, "Go." And then for the next 20 or 30 minutes, it was a very surreal time, when -- Florida, they had -- they were in the air, so I didn't have contact with them anymore. And no one was answering the phones in the White House. They'd evacuated the White House, and so the main switchboard was shut down.

And I knew I had to get there and I knew I needed to go, but I didn't know how or -- you know, I didn't -- I was reluctant to get in my car and just drive there, because they were reporting that they'd evacuated and they'd shut down the perimeter around the White House.

So actually, about the time my son called from school, which is nearby the home, and I went to pick him up from school and get him home, secure at home, while I was trying to find out what to do. And then while I was on the way there, my pager started going off and -- and the vice president called and they arranged to send a car to get me, because I -- they didn't think I would be able to drive back into downtown Washington.

GREGORY: In the middle of all this, after you saw what happened, did you talk to family, did you talk to your husband, did you talk to Robert?

HUGHES: My husband was there with me. And Robert called from school. And so I did talk to him. In fact, we -- I realized the moment I saw the -- on television that they were evacuating the White House, that Robert would see that at school and would be frightened. And -- so I had asked my husband to call him, and he was looking up the number for the school when the phone rang and it was Robert calling us. And he wanted us to come and get him.

And so we did that. And then my pager started going off. And, you know, one of those interesting ironies of a day like that, I was being paged to call the situation room and I didn't know the number because I always called the White House switchboard. And the White House switchboard was not answering because they'd evacuated. So --

GREGORY: You'd never called directly...

HUGHES: I'd never called -- I do now. I known the number now. But I didn't know the number that day. And then, you know, it's just, again, one of those ironies. I was being paged to call the vice president using his code name, which I didn't know what his code name was. And I finally figured it out, but I wasn't sure who they were trying to get me to call.

GREGORY: And here you were, this is your first year in office, you have all kinds of political experience, but you're still new to this. You're new to Washington, you're new to governing the country. Did you feel immediately unprepared for all of this?

HUGHES: I don't know that there was time to absorb that at that moment. I knew that -- my main focus was I knew I had to get back there, because I knew I had a job to do. And people have asked me how did you drive back in when everyone else was going the other way, and it was -- you know, I knew that I had to do that. That was my job. And I was very frustrated the first hour or two when they started -- they evacuated the White House and they had this false report that there'd been a car bomb at the State Department.

Mary Matalin, the vice president's counselor, and the vice president and I were frequently talking, because we were frustrated that it appeared to the rest of the world that the federal government was somehow shut down, yet we knew it wasn't. We knew they were operating, I was in contact, the president was in contact, Condi was in the shelter with the vice president, they were in touch with the president, they were -- Norm Minetta was sitting there. One time when I called in there, he answered the phone. He was sitting there directing the FAA to get all the flights down from the air.

So I knew that things were actually operating very smoothly, as smoothly as they could with that kind of horrible attack. But yet that was not the -- I didn't feel the public knew that. And so we spent a lot of time discussing -- the president had told the vice president that he felt that he should be the first one to make a statement. And that's when they were going to land -- they decided to land, I guess, in Barksdale so that he could make a statement to the American people.

And I tried to get him on the phone, the president, because I knew that if he was aware that basically what was -- it was sounding like over the radio and airwaves was that the government was shut down because of all these evacuations, and he would want me to call the Associated Press and NBC and other agencies to let them know what was actually occurring. And that was one of the most frightening days -- moments that day for me, because the operator, the military operator, came on the line with a rather shaky voice and said, Ms. Hughes, we are unable to contact Air Force One.

And apparently -- we later learned they were taking some diversionary -- they were going -- flying at very high altitudes, and apparently it had affected the communications system for a moment there. But I didn't know that at the time, and it was a very disquieting moment, as you can imagine.

GREGORY: When did you first speak to the president that morning?

HUGHES: I actually spoke to him, I believe it was in the aft -- early afternoon, when -- before I went out to brief -- to update the country on the status of what the federal government was doing in response --

GREGORY: And what was that --

HUGHES: -- after the attacks.

GREGORY: What was that conversation like?

HUGHES: He basically was reiterating that he wanted me to go out and brief the country on what we were doing to respond to the -- he was going over some basics he wanted me to say and I was double-checking with him that I was planning to say and -- it was a very quick conversation. It was not very extensive. I mean, he -- I was just making sure that he -- because I hadn't talked directly to him -- wanted me to go out and brief the country on -- as best as I could determine what all the agencies were doing. So we had been, in the shelter, actually contacting different agencies to find out exactly what the status was and how they were responding.

Again, one of the interesting ironies of that day, I sat at a computer in the shelter and typed my statement. And the computer worked, but the printer was almost out of ink. So history will show that the statement that I read from that day, you can barely -- it's barely legible, because the printer was so short on ink in the cartridge.

It was the hardest -- yeah, it was the hardest thing I've ever done, I think, because I felt so responsible for conveying what I was seeing, which was, I thought, very reassuring. I wanted to make sure that people knew that the federal government was functioning, that the national security scene was moving, that we were going to find out who did this, that we were responding as effectively as possible, that emergency crews were helping to try to find whoever we could find. And I wanted to help reassure the country. And so I -- you know, it was difficult, because they literally took me out of the White House under -- I had Secret Service that had their guns drawn when we left the shelter to take me over to the FBI. They wouldn't let me make the statement in the White House. But we'd wanted to, because we thought that would be reassuring, but the Secret Service did not think it was safe to bring the press back into the White House, so they wouldn't let me do it there.

GREGORY: Were you scared?

HUGHES: I don't think scared. Again, I was just very conscious that I had a huge responsibility to try to reflect what I was seeing to the country, to reassure them that the federal government was handling this and we were taking the necessary steps to secure our country and to get airlines, you know -- aircraft out of the air and to make sure that we were as safe as possible.

GREGORY: How scared were you for the country at that point?

HUGHES: Well, again, I think it all happened too fast. Obviously, my first reaction was just horror at the thought that anyone could do something like this. It was just horror and -- you know, a real determination that we needed to do whatever we could to help those who had -- whose lives were so affected in New York and at the Pentagon, to try to find any and rescue any people that we could, and to make sure that we immediately tried to strengthen protections to make sure that we avoided any further attacks, which fortunately we were -- you know, we were able to do.

GREGORY: Anniversaries are sad and painful. This one's going to be especially so. They're also a time to look at where we are now versus where we were then and how people and the country has changed. Let's talk about the president. How has he changed? How is he a different leader and a different man than he was on September 10th, do you think?

HUGHES: Well, I think he is -- I like to say you don't acquire the kind of qualities of character and leadership. You either -- you know, you've developed them over a lifetime or you haven't. So you don't because someone different when you respond to something. I think this brought out the best in him. I like to say he's more so. He's a -- he's always been disciplined; he's more so. He's always been focused; he's more so. He's always been, you know, absolutely engaged in leading our team; and he's more so. He clearly has a mission and he knows that the rest of his presidency will be focused on securing our homeland, going after those who threaten our security, and fighting this war against terror. And he knows that. And he knows it's his responsibility. And as long as he's president, that will be his first thought every morning and his last thought every night.

GREGORY: For those of us who actually with him when he toured Ground Zero and made the remarks about the fact that the country was being listened to, that he heard what those men were saying at that scene and that the --

HUGHES: I thought that moment was the most real moment I've seen of him since he'd been president. I've worked for him for eight years, and when I saw him get up there on that bullhorn and say -- and they were yelling we can't hear you, and he said, well, I hear you and America hears you and the rest of the people who knocked down these buildings are going to hear from all of us soon, I remember thinking as I stood there and listened to it, that is vintage President George W. Bush, that that is the essence of the man -- the strength, the resolve, the -- you know, just the identification with what the people there were feeling. And I remember thinking that at the moment he said it, that, you know -- and of course, none of had talked to him about that. It all occurred very spontaneously. One of our advance women, Nina Bishop, realized that the crowd really wanted to hear from him and went out and found a bullhorn so that he could speak. And so it was totally spontaneous, but yet I think it really was the essence of the kind of person he is.

GREGORY: He became instantly a war-time president.

HUGHES: I think that's right. And I think also America saw the fundamental strength of his character and of his conviction.

GREGORY: How do you think you've changed in this past year in your capacity as such a close advisor to the president and someone who helps him articulate a mission for the country and create policy for that mission?

HUGHES: Well, it's a great question. I'm not sure I've had time to really think about that. I remember when we worked on his speech for Atlanta, he talked about us all as Americans being sadder but wiser, a little less innocent, and -- but also a little more appreciative, I think, of our country and the many freedoms we have. I think all of us hug our children a little tighter than we did before September 11th. I think there's been -- this has reinvigorated a sense of patriotism and a sense of the meaning of what it means to be an American. And a lot of us enjoyed the privileges of that for most of our lives, and now we're assuming some of the responsibilities of that. And they're not always easy, but they're very important. And I think it's been -- in that sense, I think the president's absolutely right when he says out of the evil will come great good.

GREGORY: You've gone back home to Texas. You're still working with the White House, obviously, but now you've gone back home. How much of what happened a year ago influenced your own personal life in balancing all the things you have to balance with a career and your family? How much of that was influenced by what happened on September 11th?

HUGHES: You know, David, I -- again, that's hard to know well. I think that obviously I was at the White House a long time after September 11th, so I don't really think the events of September 11th -- my family, as you know, my son traveled with me during the campaign, so my son has always been a priority before the campaign, before September 11th, and after.

But again, I do think all of us are more appreciative. We don't probably take our freedoms for granted so much, we don't take our lives for granted so much. We've all probably looked a little bit harder at how we spend our time and whether we spend enough time with the people we love. And that's one of the things I obviously looked at when I made the decision… my family to still live in Texas, was that I wanted -- they wanted to spend more time with me, and I wanted to make sure I didn't miss key moments of my son growing up, in his last years at home before he goes back to college.

GREGORY: How should the country mark this solemn first anniversary?

HUGHES: Well, I think -- you know, I think we will -- I think that we'll be restrained and respectful. It's really, it's a very -- it's going to be a very difficult day for the families who lost loved ones. And -- so I hope that all of us can try to be as supportive of their -- and as loving and -- their country can help embrace them on this day of great pain for them. I think -- I imagine some of them are dreading this day, because it will all feel so raw again.

And so -- but I also think that we also have an opportunity to let this change our lives and to change our priorities and to change our sense of service and of citizenship and of responsible to each other. And I -- I hope -- I think the nicest tribute to those who lost their lives would be to allow it to change the way we live ours.

GREGORY: Do people move on too quickly? Do you think you've gone home to Texas and been with friends and family and you speak to people across the country, do you think that people have moved beyond September 11th?

HUGHES: I don't -- you know, I think things feel a little more normal the more distance we get. And that's probably good. But I think that anyone who lived through that horrible day will be somewhat changed by it. Again, I do think that we all -- I hope that we all don't take quite so much for granted, the time we've been with our family, the time we've been with our loved ones, the great freedoms we enjoy in this country and the responsibilities that we have to protect and defend those freedoms.

GREGORY: Americans are resilient. The president talks about that a lot. And a year later people have moved on, it does feel more normal. Is that harder for the president? Does he worry that Americans moved past September 11th --

HUGHES: I don't think so.

GREGORY: -- and do you think it's hard for him to --

HUGHES: I don't think so. I think the American people are remarkably -- have been remarkably patient. I remember the first week after September 11th, he -- every morning when I saw him, he kept telling me we've got to educate the America people about what a dif -- the different nature of this enemy, the different kind of war that this is. He drove that into all of our heads every day for weeks. Because it really is different. It's different from, you know, moving armies or conquering territory. It's a -- it's really a threat from a faceless enemy who hides and sends other -- you know, as he says, sends young men out to kill on behalf of people who hide in caves.

So it's very different. And I have been very impressed by the patience that the American people have shown, by their understanding of the threat. Because it is different. It's different than any threat we've ever faced, and it's a very insidious, long-lasting threat to our country. And as I said, it's going to occupy every fiber of the president's being, I think, for the rest of his tenure in office, which I hope will be two-termed.

GREGORY: Just one last question. What does the president want to say to America on this first anniversary?

HUGHES: Well, David, I think that he will talk -- he will speak to the sadness of the occasion and of how much was lost. I think he will talk about, you know, reading those stories about each of the victims, you realize how much one life touches so many others, how much joy and vibrancy one life can bring to so many people. And I think he'll talk about that. And then I think he'll talk about the fact that we can all pay tribute to the people who lost their lives by the way we live the rest of ours, by defending the freedoms we hold so dear and by living more a spirit of service to each other and to our country.

GREGORY: Thanks, Karen.

HUGHES: Thank you.