You can watch it happen here:
Bush in Albania 2007 - Cheering in Fushe Kruja
Bruce Schneier’s post, which Gautam pointed me to, has more details. As Schneier points out, Bush is wearing the watch 50 seconds into the clip, but it’s clearly missing 14 seconds later. To my eagle eye, the process of unclasping it seems to start 53 seconds into the clip (03:11 in the clock above), and the task is completed within four seconds. Masterful.
So now, apart from the missing WMD, Dubya’s also got to worry about his missing watch. Poor man!
Update: Nitin points me to an American denial of the alleged theft.
But hey, look at the video!