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CNN Live Saturday

Bush Charges Arafat With `Enhancing Terror'

Aired January 26, 2002 - 14:01   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: President Bush is calling on Palestinian leader Yasser Arafat to crack down on terrorism immediately. Mr. Bush yesterday charged Arafat with, quote, "enhancing terror" and met with national security advisers to consider United States options.

As CNN's Jerrold Kessel reports, Arafat is experiencing a fresh groundswell of Palestinian support.

(BEGIN VIDEOTAPE)

JERROLD KESSEL, CNN CORRESPONDENT (voice-over): Ironically, as Yasser Arafat's situation seems more and more precarious, more and more backing for him on the Palestinian street, a rally of thousands in Bethlehem, the latest show of support.

The chant here: "America, the same America, the head of the snake."

Another fixture now, Israeli tanks perched ominously right outside Yasser Arafat's West Bank headquarters. But inside the Palestinian leader's compound, supporters gather to back his defiance of Israeli Prime Minister Ariel Sharon.

"His tanks," Mr. Arafat declares, "they could not shake us when they besieged us in Beirut. Now we're in Palestine," he says with a flourish. "Now, what hope has he of shaking us."

Some hope no hope.

The naked Israeli pressure on Mr. Arafat has now been compounded by American pressure.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I am disappointed in Yasser Arafat.

KESSEL: Washington warning that unless he makes good on his promises to combat Palestinian militants, the Bush administration could go so far as to wash its hands of further contacts with him.

SAEB ERAKAT, PALESTINIAN CABINET MINISTER: As the people in the crisis, we need the help of a third party, and not to have this attack on us by the Americans in order to give Sharon the green light to continue the war of escalation. KESSEL: Following the U.S. strictures, the Palestinian leadership issued a renewed call for its declared cease-fire to be strictly heeded, but top Arafat aides voiced dismay at Washington hints that it's close to designating Arafat more part of the problem than part of the solution.

ERAKAT: I believe President Bush knows very well that Sharon is not a man of peace, is a man destroying the peace process, destroying the Palestinian Authority, but at the same time, it doesn't cost President Bush anything to attack the Palestinians and to take sides with the Israelis against the Palestinians because of internal politics.

KESSEL: Beyond the deadly tit-for-tat exchanges, a sense this conflict is moving more towards a key strategic moment, Arafat battling for survival, Sharon seeking to deny him any attempt to breach his growing isolation.

CHEMI SHALEV, POLITICAL ANALYST: I don't think the Americans are under any illusions concerning the possibilities where this situation could go from Mr. Sharon's point of view, and therefore, if they're taking the steps that they're taking, they are taking into account that if there is another major terrorist attack, Mr. Sharon might go full ahead and get rid of Mr. Arafat.

KESSEL: The Israeli leadership revels in what it sees as a diplomatic triumph, but some see distant dangers lurking behind the present strategy.

SHALEV: There is a possibility that those who claim that Arafat should be pressured are right, and that he will now respond in the fight against terrorism. There is the possibility that they are wrong, and that he is like a wounded animal now in a corner.

And just like the intifada itself broke out a year ago when Arafat was surrounded and condemned by America and by the European community, there is a concern that the same thing will happen now and he will feel that he doesn't have anything left to lose. And that he will, instead of deciding to fight terrorism, he will decide to unleash it against the Israelis in the hope of mixing things up and perhaps improving his position.

KESSEL (on camera): Mr. Sharon, meanwhile, will be able to travel to Washington for another meeting at the White House in 10 days' time, knowing that with the Bush administration now also turning the screw on Yasser Arafat, the argument of those in his government, like his foreign minister, Shimon Peres, who want the prime emphasis to be on getting back to negotiations, has been considerably weakened.

Jerrold Kessel, CNN, Jerusalem.

(END VIDEOTAPE)

WHITFIELD: The Bush administration is considering a range of options for dealing with Yasser Arafat and the escalating crisis in the Middle East. CNN White House correspondent Kelly Wallace joins us with more on that.

Kelly, the president has an awful lot on his plate right now. Let's begin with the Middle East. He's exploring some options, just back from Camp David. What new do we know about what kind of talks he's had with his own people?

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Well, Fredricka, we know that he's still really considering his options. That he and his advisers, as you noted, met on Friday. And the sense that we're getting is that they're going to consider and continue to consider their options while they try to keep up the pressure on the Palestinian leader.

As you said, Mr. Bush arriving back here at the White House a short time ago, after spending just about a day at the presidential retreat at Camp David. He's really expected to have sort of downtime with his family today.

Aides, though, definitely trying to keep the pressure on the Palestinian leader. You heard the president himself yesterday saying he was very disappointed in Mr. Arafat. Secretary of State Colin Powell saying the same thing also. Advisers confirming today that the administration still believes that the conditions are not right for Anthony Zinni, he is the United States' Middle East envoy, to return to the region. That's another way to keep on the pressure.

The president also this week in letters to leaders of Saudi Arabia and Jordan and Egypt, encouraging them to keep up the pressure on the Palestinian leader. The president has a meeting planned later this week with Abdullah of Jordan as well.

So the sense is, keep on the pressure. Keep discussing the options. The sense we're getting is, actually severing ties, diplomatic ties, with the Palestinian Authority, probably not likely exactly right now, but the main message we're getting is this White House is watching what the Palestinian leader does, what he says, his actions, and then they'll make some decisions from there -- Fredricka.

WHITFIELD: Kelly, as a mentioned, a lot on the plate of the Bush administration right now. Vice President Dick Cheney has been rather tight-lipped about his talks with Enron executives. What more do we know now about the General Accounting Office and their threat to sue the White House?

WALLACE: Well, it appears to be coming to a head here.

As you know, the General Accounting Office, Congress' investigative arm, folks from there saying yesterday that if the White House does not turn over documents, meeting lists, all information it is seeking about the meetings between the Energy Task Force and other industry heads, that the GAO could sue the White House.

It would be the first time the GAO would ever sue a federal agency. Well, we talked to some White House folks today. White House is maintaining its defiance. A senior administration official saying, quote, "We would not be surprised if they take it to court. When they do, we'll see them in court. We do not expect they would prevail."

Fredricka, the sense from officials here is that principles are at stake. That this would be an unprecedented step by the GAO to try to get access to private meetings between government officials and industry leaders to try to come up with policy. So they're holding firm and say if the GAO takes them court, they'll settle it there -- Fredricka.

WHITFIELD: And certainly this is producing a dark cloud hanging over the White House. The timing couldn't have been worse. With the state of the union address coming up on Tuesday, what kind of preparations are you being made aware of in terms of President Bush and his preps?

WALLACE: Well, he did do a little bit of a run through, Fredricka, on Friday of the address, and during his time at Camp David he sat down with about 20 Republicans, members of the House and Senate, talking about legislative strategy plans for the year. Also previewing the issues he'll be focusing on in the state of the union address.

We're told really three issues: he's going to talk about trying to restore jobs to the economy, prevent another terrorist attack here in the United States, and continue to fight terrorism overseas.

President knows he has sort of a hard attack to follow. He was given very high marks for that speech back in September, going before Congress. Aides say that was a unique time in the nation's history and this is a different time. The president really has to set out his vision for where the country goes from here, and he'll do that Tuesday night -- Fredricka.

WHITFIELD: All right. Thanks very much, Kelly Wallace, reporting from the White House.

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