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CNN Live Today

Despite Renewal of Mideast Violence, Movement on Diplomatic Front

Aired July 18, 2002 - 13:30   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.
KYRA PHILLIPS, CNN ANCHOR: In the Middle East, the Israeli government has temporarily shelled the plan to ease the crackdown against the Palestinians. This week, a period of relative calm has been shattered by violence, including two bombings yesterday in Tel Aviv. Two suicide attacks occurred at the same time and left three people dead, plus the bombers. The day before, eight Israelis were killed when Palestinian gunmen ambushed a bus in the West Bank.

Despite the renewal of violence, there is movement on a diplomatic front, and as usual, the United States is in the midst of it.

For more on that, CNN's Kelly Wallace. She is travelling with the president in Rochester, Michigan.

Hi, Kelly.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Hi again, Kyra.

President Bush wrapping up his visit here to Michigan, making his way back to the White House where he will be meeting with the foreign ministers of Egypt, Jordan and Saudi Arabia. The president facing a number of challenges going into that meeting. Challenge number one: trying to make sure the past couple of days of violence does not turn into another setback for the peace process.

Now, the president left the White House early this morning, joined with the Polish president. The two men leaving the White House and coming here to Michigan. This, the informal part of a two-day state visit. The president also coming here to Michigan, a state whose population, 9 percent of that population, is Polish-American. So the president certainly hoping this visit, reaching out to Polish- Americans, can help Republicans in November and can also help him in 2004.

But going back to the Middle East, as soon as the president gets back to the White House a little bit later this afternoon, he will have that meeting.

And two other challenges the president will face, include Arab leaders are saying that in order to reform the Palestinian security forces, Israel needs to take some steps as well, such as withdrawing from some of the Palestinian areas the Israelis recently reoccupied. The American position continues to be, the Israelis should do that, but only after the security situation in the region improves.

And then challenge number two, that concerns Palestinian leader Yasser Arafat. As we know, the president has made it clear, he believes Yasser Arafat needs to go, and that the Palestinians deserve new leadership. But Arab leaders today are speaking out. They believe Yasser Arafat must be dealt with. The Egyptian foreign minister, in fact, on his way into a meeting with the Secretary of State Colin Powell, saying no plan is carved in rock. He is saying he does not believe President Bush expected people to accept each and every sentence of the president's plan.

So a number of challenges ahead. Kyra, again, the president on his way back it Washington for a meeting with those Arab foreign ministers.

PHILLIPS: All right, Kelly, thank you. Now let's go to John King who's standing by at the White House. John, you are working on some in-depth reporting on a different front. What's the latest?

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Kyra, trying to give our viewers a refresher course, if you will. If they've been following the whole debate about corporate responsibility, they've heard a lot dust up here in Washington. Democrats questioning the business practices of President Bush and Vice President Cheney before this administration took office. So a piece later today, we'll go back and look at Mr. Cheney's five-year tenure at a company called Halliburton. It's a Dallas-based oil exploration company. It's manages oil fields, also has a pretty big construction business, more than a hundred thousand employees in 120 countries around the world.

Just want to remind people just what happened with that company when Dick Cheney was the CEO. When he took over in 1995, for example, the stock was at a little over $20 a share. When he left to join the Bush ticket, the stock was at 53. So you might say, hey, Dick Cheney did a pretty good job as CEO. This morning, that stock opening at $13 a share. Two big questions driving it down. One, SEC investigation into some accounting decisions that began when Dick Cheney was CEO. Also, the company now faces the potential, potential because of lawsuits, of billions of dollars in asbestos liability claims.

Some question whether Dick Cheney should have pushed for a merger he did back in 1998 that brought those asbestos claims to the Halliburton desk, if you will. So just look back at the dust-up in Washington of the business experience of the president and vice president and just what were those companies they headed they came here to Washington.

PHILLIPS: John, why did the company hire -- going back even before, hire Cheney in the first place. He has never been a CEO before, right?

KING: Well, he ran the Pentagon. You may say he was a CEO in the first Bush administration. But you're right, he had never ran a large company, private company outside of Washington. He had been a White House chief of staff, he had been a member of Congress, he had been an defense secretary, and that's exactly why Halliburton hired him; it makes no secret of the fact, one word, access, that Dick Cheney could open doors here in Washington and especially in the oil- producing Arab world. During the Gulf War, remember, Dick Cheney traveled extensively -- Saudi Arabia, Kuwait, Bahrain. Those were the major oil-producing nations in the world, and Halliburton wanted his help opening doors, and by all accounts, it got it.

PHILLIPS: So why isn't he coming out and defending himself? You have to wonder why isn't speaking out, John?

KING: Well, Mr. Cheney says he cannot comment publicly because there is a Securities and Exchange Commission investigation. His staff says for the vice president to be out in public defending himself could be interpreted as trying to influence an investigation by federal regulators now. Some Democrats are saying the vice president should offer an explanation. Even though yesterday, when the president said he something like, he's confident Dick Cheney will ultimately be cleared, some Democrats said the president was trying to influence the investigation. So Mr. Cheney says needs to wait until this investigation is over. So as long as the investigation goes on, count for the political back and forth as well.

PHILLIPS: All right, John King from the White House. Thanks, John.

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