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CNN Live Sunday

State Of Emergency Announced In Iraq; Former Army Soldier Files Lawsuit

Aired November 07, 2004 - 16:00   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: U.S. Marine artillary lights up the skies over Falluja, setting the stage for an expected all-out offensive on the Iraqi city.
Paltestinian officials have something new to say about the health of Yasser Arafat.

And he fought for a second chance and won. Now, can President Bush avoid a second term curse. History isn't on his side.

Hello and welcome to CNN LIVE SUNDAY. I'm Fredricka Whitfield. All that and more after a look at these headlines.

Critically ill Palestinian leader Yasser Arafat will get some high profile visitors tomorrow. Palestinian Prime Minister Ahmed Qorei and former Prime minister Mahmoud Abbas are heading to the Paris hospital where Arafat remains in a coma. Qorei and Abbas are leading contenders to replace arafat.

Back in the U.S., gas prices are heading south. The cost of a gallon of self-serve regular regular almost three cents over the past two weeks, that's according to the Lundberg survey. The average price is now $2.01.

And the star of such Hollywood classics as "Kiss Me Kate" and "Showboat" has died. Howard Keel was 85. His baritone and his broad shouldered 6'4" inch frame made him an ideal leading men in the era of big movie musicals. Younger fans may remember him as Clayton Farlow on the TV series Dallas.

Up first this hour, U.S. and Iraqi troops are poised for an expected showdown with rebels in Falluja. There's been a steady rumble of gun and artillary fire in that region whre it is currently night fall.

Elsewhere in Iraq, violence has flaired up. And now most of the country is under a state of emergency. CNN's senior international correspondent Nic Robertson has a report from Baghdad.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Just minutes after the state of emergency was declared, this ambulance raced through Baghdad's streets, on its way to the aftermath of a car bombing near the home of Iraq's interim finance minister. Only moments before, a government spokesman blamed, quote, "continuous crimes by terrorists" as the reason behind the state of emergency.

THAIR HASSAN AL-NAQEER, IRAQI GOVT. SPOKESMAN (through translator): We have decided to declare the state of emergency throughout Iraq except for Kurdistan in the north, and for 60 days.

ROBERTSON: At the same time, Prime Minister Iyad allawi met with his security chiefs. His own powers will be strengthened as a result of the declaration, granting him extraordinary authorities that he can delegate to civilian and military officials.

He is also empowered to commence speedy military and security decisions, seek the assistance of the multinational force, impose curfews, control communications, restrict transportation. Measures which, in some cases, the transitional government has also implemented on occasion over the past few months. Allawi, however, urged insurgents to heed his new authority.

AYAD ALLAWI, INTERIM IRAQI PRIME MINISTER: This will send a very powerful message that we are serious. We want the election to take place. We want to secure the country so elections could be done in a peaceful way. And the Iraq people can participate in the elections freely without intimidation.

ROBERTSON: Earlier in the day, insurgents sent their own powerful message. Apparently, coordinated rocket and gun attacks on three different police stations in an area about 120 miles northwest of Baghdad. They executed 9 policeman with no resistance says this resident. They took particular weapons. Made them stand up by the wall and shot them in one go. Local health officials report 21 dead including a senior police chief.

(on camera): To the south of Baghdad, a fire fight between insurgents and coalition and Iraqi forces killed at least 6 civilians and wounded 4 others. Too soon to say if the state of emergency is a state of fact, or an announcement that can reshape Iraqi's lives. Nic Robertson, CNN, Baghdad, Iraq.

(END VIDEOTAPE)

WHITFIELD: And more now on the planned offensive in Falluja with CNN's Karl Penhaul embedded with the U.S. Marines.

(BEGIN VIDEOTAPE)

KARL PENHAUL, CNN CORRESPONDENT (voice-over): These soldiers from the new Iraqi army will soon be charging into battle for real. They'll be fighting shoulder to shoulder with U.S. Marines against thousands of insurgents holed up in nearby Falluja.

SGT. MAJ SAEED SAKR, IRAQI SECURITY FORCES (through translator): These terrorists are evil men. They are hiding among families and children and kill the Iraqi people.

PENHAUL: The Iraqi soldiers are already familiar with the Soviet designed weapons they have been issued, but they are training for the first time on U.S. armored attack vehicles. (on camera): For many of the U.S. Marines, Falluja promises to be their first time in combat. On the other hand, for a lot of these Iraqi soldiers, they have already seen battles before. Some of them were part of the Pesh Merga resistance fighters.

(voice-over): Others are Shia Muslim from Southern Iraq.

Some analysts believe there's a risk those Pesh Merga and Shias, who were persecuted under Saddam Hussein and now soldiers, could try to reap revenge on Falluja. Staff sergeant muhammed says he's up for a fight but not out for revenge. The hard core of the cities rebels are believed to be either former Saddam loyalists, or Sunni Muslim radicals.

Staff Sergeant Mohammed Ahmed Mohammed, a former Pesh Merga, says he's up for a fight, but not out for revenge.

STAFF SGT. MOHAMMED AHMED, IRAQI SECURITY FORCES (through translator): They murder civilians and they hate the Iraqi security forces. I want to fight them as soon as possible, he says.

PENHAUL: Iraqi security forces have fought alongside U.S. troops before. But if they train for urban combat, they know Falluja will be the most critical battle together.

Interpreters play a key role trying to ensure nothing is lost in translation as tactics and orders are shared. Some of the U.S. advisers have also picked up a little Arabic.

UNIDENTIFIED MALE: We've been through a lot together in the last 7 months, we really have. And I'm going to be the one right there with them in the battle. So I feel confident they will do a really good job.

PENHAUL: Despite shows of confidence, the new Iraqi army does have problems. Some soldiers are undisciplined on the battlefield, according to some U.S. officers. U.S. military sources say another serious problem is desertion.

Karl Penhaul, CNN, near Falluja.

(END VIDEOTAPE)

WHITFIELD: And under military embed rules on operational security, we cannot report how desertion has affected this particular battle ready unit.

Let's take a closer look now at what coalition forces are up against with the planned assault taking place in urban surroundings of Falluja. Joining us now, CNN military analyst retired Marine Major General Terry Murray. Good to see you.

MAJ. GEN. TERRY MURRAY, (RET) CNN MILITARY ANALYST: Thank you, Fredricka.

WHITIFELD: Well, let's talk about what is at stake here. This was a highly populated dense city of Falluja, something like 200,000 of the 250,000 residents have fled leaving it to be like a ghost town. Let's talk about the obstacles that still are in place in the form of the infrastructure for the coalition forces. What are they up against, exactly?

MURRAY: Still a very difficult environment. We don't know exactly how many of the civilians have left, but it could be 50 percent, maybe closer to 75 percent. What that helps you with is that you don't have civilians getting in the way when you engage the bad guys.

We also expect that the insurgents and the terrorists have done work with roadside bombs, potentially mines, embedded, tank mines embedded in the roads. Snipers, I would expect, will be positioned in and around the city, assuming, now, that the insurgents have not left.

You know, we're guessing at -- it could be as few as a thousand or as many as 6,000 insurgents that are still in the city. And this is the first, and probably the most important question. And we won't know until the attack begins.

WHITFIELD: There may be other forms of booby traps in place, as well. Since there are something like 50,000 residents that remain in that city, that's the estimation, won't it be difficult for coalition forces to discern civilians from these insurgents if they have decided to stay?

MURRAY: Absolutely. We know that there is a large remaining population of locals who are still in the city. And we also know that these are Sunnis. And they are partisan to some, if not many, of the insurgents.

Consequently, these civilians will complicate everything that we're trying to do, because we are very, very careful not to take casualties among civilians. So the rules of engagements will have an effect on how we do business once we cross the line of departure.

WHITFIELD: And thus far within at least the last 24 hours the coalition has used terms like softening up the city in preparation for this expected assault. What does that mean exactly?

MURRAY: What that means, Fredricka, is that we have carefully targeted strategic and tactical targets in and around the city. Those could be positions where we think there are command and control centers of whatever leadership team they have in place there. It could also be weapons caches, potentially sites where our intelligence, probably human intelligence and electronic intelligence, has suggested that we have insurgents or terrorists.

So, in these past 3 days, there has been a very careful painstaking effort to reduce those targets. And really to shape the battlefield so that when we cross that line of departure, and our troops with the coalition forces go into the attack, we have created the best possible and most favorable conditions for things to go quickly and well. WHITFIELD: And over night, it is nighttime there now, actually, we have seen some new video of some -- what appear to be air assaults. At what point will air assaults be the primary part of the strategy before ground assaults then take place?

MURRAY: I have -- I can only guess what plan we have in place for air assault. I think with roughly 10,000 coalition forces, the numbers could be greater than that, crossing the starting point potentially tomorrow or later in the week, most of our forces, both the coalition, Iraqi forces and our own, will move in by vehicle and on foot.

What we may choose to do in an urban area, via air assault, I think will be quite limited. This attack is going to be conducted on the ground through a combination of foot mobil troops, wheeled vehicles and track vehicles. And the problem that you have in the city is that your ability to maneuver is greatly reduced, because everything is channelized inside a city like they are about to enter in Falluja.

WHITFIELD: All right. CNN military analyst retired Marine Major General Terry Murray. Thanks so much for joining us.

MURRAY: Thank you, Fredricka.

WHITFIELD: Well a former active duty U.S. soldier is being told to pack his bags for return to Iraq years after he left the army.

(BEGIN VIDEO CLIP)

UNIDNETIFIED MALE: Being out 13 years now, and actually nine since my obligation, it was something I never thought of.

(END VIDEO CLIP)

WHITFIELD: Why the U.S. army wants him back and why he's not going without a fight. Straight ahead.

Also, conflicting reports about the status of Yasser Arafat. The latest on his condition. And news of two high ranking leaders heading to his bedside.

Plus, a huge jump in jobs last month, but the unemployment rate still went up. I'll talk with a jobs analyst to find out how that happened.

(COMMERCIAL BREAK)

WHITFIELD: Now we turn to another developing story that will have a profound impact on the Middle East. Yasser Arafat remains alive in critical but stable condition at a Paris hospital. Both the current and former Palestinian prime ministers will visit the hospital tomorrow. CNN's Fionnuala Sweeney has the latest medical and political developments from there.

(BEGIN VIDEOTAPE) FIONNUALA SWEENEY, CNN CORRESPONDENT (on camera): A concerted effort underway now by the Palestinian Authority to dispel the rumors and counterrumors surrounding Yasser Arafat's health. A delegation is expected to leave Ramallah in the West Bank early Monday morning to travel to Paris. The delegation is thought to include the former Prime Minister Mahmoud Abbas who is also the deputy chairman of the P.L.O., also Ahmed Qorei and the foreign minister and Nabil Shaf (ph), the foreign minister.

They will come here to the Percy Military Hospital in West Paris to visit the ailing 75-year-old. And it is also thought there will be a meeting with the French President Jacques Chirac.

This development following a reported meeting between the Soha Arafat, the wife of the Palestinian Authority president, and Mohammed Dahlan, a senior Palestinian official. During that meeting, it is reported that the two agreed that more information concerning the status of Yasser Arafat's condition would be handed over to the Palestinian Authority.

No further news, though, about Yasser Arafat's health emerging. A hospital official saying on Sunday only that his condition remained the same as the last medical update given by the hospital on Friday. He remains in a stable, but critical condition.

Fionnuala Sweeney, CNN, Paris.

(END VIDEOTAPE)

WHITFIELD: Should Yasser Arafat die, the event will have both short-term and long-term implications for the Middle East. Joining me from Houston, Texas to look ahead is Mamoun Fandy, a senior fellow with both the Baker Institute at Rice University and the United States Institute of Peace. Good to see you.

MAMOUN FANDY, RICE UNIVERSITY: Good to see you, Fredricka.

WHITFIELD: All right. Well, it's been reported that the likely successor as president would be Mahmoud Abbas. But why, when the former prime minister apparently fell out with Yasser Arafat?

FANDY: Well, I think it is really more than just Mahmoud Abbas, Fredricka. If you look at, you know, Yasser Arafat, who he is, who has the qualifications to replace him, you need more than Mahmoud Abbas.

Arafat is really known as the Patriarch, Mr. Palestinian, the godfather, if you will, the potentate, all in one. And then you have Mahmoud Abbas who is a 69-year-old man. He's very smart, highly respected. With very legal power base in Palestine. But is very respected by the Israeli and Arab leaders in the region as well as Americans.

WHITFIELD: So, are you also suggesting, then, there has to be some sort of collective leadership? FANDY: I think there has to be at least a triade that includes Mahmoud Abbas as well as Ahmed Qorei who is travelling with him and also the man who you report presented as close to Soha Arafat, Mohammed Dahlan, a 43-years-old, a former security chief in Gaza. And he has both the charisma as well as the men with the guns on the ground.

So these are the people who can make up for Arafat.

WHITFIELD: But what about this Palestinian law that was drawn up by Arafat not that long ago that actually said in case of his death or illness that it would be the speaker of parliament who is Raoui Fattouh, who would actually take power. And apparently his name really isn't coming to the top as Ahmed Abbas and Ahmed Qorei's names are.

FANDY: Well, I mean, Raoui Fattouh is really a small player in Palestinian politics. I mean, this is really formal Palestinian politics, this is what's on paper, but the actuality is really what will make the difference, who has the actual power, the support. And not only just support within the Palestinian territories, but also acceptable to the Egyptians, the Jordanians and the Israelis. And this is why everybody is going to Paris to really kind of negotiate that deal where the French, the Egyptians, the Jordanians and even the Americans will sign on who will replace Arafat.

WHITFIELD: Well, what are you reading from these planned trips tomorrow with Qorei and Abbas? Do you think that we are likely to hear a bit more detail about the state of affairs of Yasser Arafat once those 2 get on the ground and visit him at the hospital?

FANDY: Well, the three items might emerge out of this. I think first of all who will replace Arafat? Who will be, also, acceptable to Soha, to the Palestinians, to the whole neighborhood? That's one.

Who has the money and how this money is going to be allocated? And what to do about the big unknown in the territory, and that's Hamas. And that's Ahmed Qorei went to talk to them, Hamas and Islamic Jihad yesterday.

And this is sort of really a meeting to draw out all the elements, including even in worst-case scenario if Arafat dies. Where will he be buried? and what's the compromise on that.

WHITFIELD: And what do you believe the compromise might eventually be on that?

FANDY: Well, I think the compromise --- I mean, Arafat's family has a lot in Gaza for the family. But I think Arafat's wish was to be buried in Jerusalem. The Israelis are adamant against that. What we will get is a compromise that's a small town near Jerusalem that called Abudes (ph), which was suggested at one point as the Capitol for the coming Palestinian state.

WHITFIELD: Is that a compromise that would in any way spark any unrest among the Palestinian people that Arafat's wishes were not carried out exactly like he would want?

FANDY: Well, unrest is really what we are going to see Fredricka. As I said, all the factors point to no matter even a whole team of three as well as the complexity of issues will not replace Arafat. And we're likely to see more unrest afterwards.

WHITFIELD: All right. Mamoun Fandy, thanks so much for joining us from Houston.

FANDY: Thank you.

WHITFIELD: President Bush's right-hand man is now speaking out about the next 4 years. Coming up, what Republican strategist Karl Rove has to say about the economy and the Bush administration.

And then, the second term curse. Is it just an urban legend? CNN's Bill Schneider tries to find out. That's coming up on CNN LIVE SUNDAY.

(COMMERCIAL BREAK)

WHITFIELD: Five days after the election the man President Bush calls the architect of his campaign is speaking out. Karl Rove recalls feeling rather sick when he read exit polls tilting towards John Kerry on election day. But he said President Bush's eventually victory is proof the country has moved in a Republican direction. Rove is looking forward to the president's second term. He outlined a plan to keep the country economically competitive.

(BEGIN VIDEO CLIP)

KARL ROVE, BUSH CAMPAIGN CHIEF STRATEGIST: We got a lot of competition around the world. And it's -- the competition for American companies is no longer in the next county or the next state, it's on the other side of the globe. And to be able to compete we have to improve our education system, our litigation environment, our tax code, our health system and our trading policies if we're going to be as strong economically in the years ahead.

(END VIDEO CLIP)

WHITFIELD: Rove says he hopes Republicans will be governing or be rather the governing party for decades.

One of the Democratic Party's new stars is calling for Democrats and Republicans to find common ground. Senator-elect Barack Obama of Illinois says divisive politics are bad for the country. And he responds to Rove's comments about the economy and other issues.

(BEGIN VIDEO CLIP)

BARACK OBAMA, (D) SENATOR-ELECT ILLINOIS: How we make sure that the middle class is, in fact, sustainable in this global competition or we're talking about how we provide the education that our children need so that they can succeed, those are issues where we all share, I think, success. And one of the things I told the president was that we all have a stake in seeing him have a successful presidency.

I don't think that the Democrats succeed by rooting against the president in office, but we have to be honest where we disagree with him and he's got to make his case where he's presenting issues that we're skeptical about.

(END VIDEO CLIP)

WHITFIELD: Obama is already beginning to field questions about his political future. He says he is committed to serving a full six- year term as a newly elected U.S. senator.

Well what could the next 4 years bring for President Bush? Well, if history is any guide, he may be in for some rough waters. CNN's senior political analyst Bill Schneider explains.

(BEGIN VIDEOTAPE)

SEN. JOHN KERRY, (D) MASSACHUSETTS: No one thought it was possible...

BILL SCHNEIDER, CNN POLITICAL ANALYST (voice-over): President Bush has beaten John Kerry, now he's got to beat a bigger challenge: the second-term curse. Second terms have usually been disasters. Franklin Roosevelt won a landslide reelection victory in 1936 then he made the mistake of taking on the Supreme Court.

ROBERT DALLER, PRESIDENTIAL HISTORIAN: Tried that court packing plan, and he fell on his face so to speak. He never would have been elected to a third term if it hadn't been for World War II.

SCHNEIDER: Everybody remembers Harry Truman's surprise reelection victory in 1948, but few remember how unpopular Truman became in his second term.

DALLER: Truman's second term, he had a 32, 33 percent approval rating because of the frustration over the Korean War.

SCHNEIDER: Dwight Eisenhower had a major recession in his second term. Plus, big international problems.

DALLER: He had to deal with the U2 affair, and the terrible frustration over what was called the missile crisis, the Soviet Sputnik.

SCHNEIDER: Lyndon Johnson's second term was ruined by the Vietnam War.

Richard Nixon didn't have much a second term, a little problem called Watergate.

RICHARD NIXON, PRESIDENT OF THE UNITED STATES: I'm not a crook.

SCHNEIDER: Ronald Reagan had a problem called Iran-Contra.

RONALD REAGAN, PRESIDENT OF THE UNITED STATES: A few months ago I told the American people I did not trade arms to hostages. My heart and best intention still tell me that's true, but the facts and the evidence tell me it is not.

SCHNEIDER: Bill Clinton had a little problem called Monica.

WILLIAM CLINTON, PRESIDENT OF THE UNITED STATES: Indeed I did have a relationship with Miss Lewinsky that was not appropriate. In fact, it was wrong.

SCHNEIDER: What brings on the second-term curse?

UNIDENTIFIED MALE: What happens is presidents overstay their welcome.

SCHNEIDER: Having gotten elected twice, second-term presidents overreach. They assume they are above politics. When what they really are is lame ducks, cursed with diminishing political clout.

(on camera): President Bush really has just 2 years to seize initiative, because the president's party almost always faces a big setback at the sixth year midterm. It's called the six-year itch. It comes with the second term curse. Bill Schneider, CNN, Washington.

(END VIDEOTAPE)

WHITFIELD: A state of emergency is issued in Iraq amid an expected U.S. led offensive on Falluja. What can military action mean for Iraq's upcoming national elections? We'll look into that coming up.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I never thought I would get called back.

(END VIDEO CLIP)

WHITFIELD: Ordered to report for active duty 8 years after he left the army, actually 13 years after he left the army, this former soldier isn't packing his bags. He's filed a lawsuit.

(COMMERCIAL BREAK)

WHITFIELD: Now in the news, a new survey says the price of gasoline is going down, reversing a trend that began in early September. The average price of a gallon of self-serve regular is $2.01. That's down nearly three cents over the past two weeks.

The Palestinian foreign minister tells CNN PLO leader Yasser Arafat is in a coma "that's reversible." Foreign minister says the currant and former Palestinian prime ministers will travel to Paris tomorrow where Arafat is being treated for a still undisclosed aliment.

A new report says the number of women in state and federal prisons has reached an all-time high. The federal report says the female prison population has topped 100,000 for the first time and is increasing at a rate twice as fast as men.

The latest now on our top story. The planned assault on the Iraqi rebel strong hold of Fallujah. A pool reporter says Iraqi forces took over the main hospital in that city. There was no resistance. Thousands of U.S. marines and Iraqi forces are poised along the outskirts of the city waiting for the word to move in saying Iraq is serious about cracking down on insurgents. Interim Prime Minister Allawi declared a 60-day state of emergency. It is in effect for all but the Kurdish north.

Meantime, Iraq saw a new wave of violence today. A U.S. soldier was among 32 people killed in a serious of car bombings, shootings and gun battle.

Down in the capital in Latifiya a battle between insurgents and coalition and Iraqi forces left six civilians dead.

Well the offensive is aimed at securing Fallujah before the January elections. CNN's Jamie Mcintyre is standing by live at the Pentagon with more on this. Jamie.

JAMIE MCINTYRE, CNN CORRESPONDENT: Well, U.S. troops encircling Fallujah are anxious to take the offensive after months of being on the receiving end of suicide attacks and car bombs. Today they got a pep talk with the three star general who is in command of the operation.

(BEGIN VIDEO CLIP)

GEN. JOHN SATTLER, U.S. MARINE CORPS: This town is being held hostage. By thugs, murders and intimidators. All they need is for us to give them the opportunity to break the back of that intimidation. To go in there is and stomp it out where it needs to be stomped. And then the sun will come through.

(END VIDEO CLIP)

MCINTYRE: Well, confident the victory the U.S. military sunned no illusions the battle of Fallujah will be the insurgents last stand. The military objective here is limited to driving the insurgents out, returning control to local leaders, who can work with the central government in Baghdad. So the city can take part in elections set for January. Pentagon officials say it's not expected that this assault will, quote, break the back of the insurgency nor is it expected that it will result in the capture or killing of Abu Musab Al Zarqawi, the terrorist leader who is thought to have been using Fallujah as a base of operations.

Pentagon officials say he may well have slipped out of the town given how well telegraphed this operation was, how long it's been coming. But as you mention, the Iraq prime minister who will give the order for the attack has put most of the country under a state of emergency law. Which he says is important to send a message to the terrorists.

(BEGIN VIDEO CLIP) AYAD ALLAWI, INTERIM IRAQI PRIME MINISTER: This will send a very powerful message that we are serious. We want elections to take place. We want to secure the country so elections can be done in a peaceful way and the Iraqi people can participate in the elections. Freely without intimidation by terrorists and by forces who are trying to wreck the political process in Iraq and to bring death and destruction to Iraq.

(END VIDEO CLIP)

MCINTYRE: Big question mark will be the performance of those Iraqi troops who are along side the U.S. forces so far so good. The report tonight from CBS News pool reporter is that the hospital outside of Fallujah, just outside Fallujah the main hospital, has been taken without a shot being fired by a group of Iraqi special forces who broke in the hospital kicked down doors and managed to take control. Now it's unclear if this is a beginning of a bigger offensive or one of the preliminary operations that's taking place in order to lay the groundwork for the major push into the city. Back to you.

WHITFIELD: And Jamie outside of Fallujah, Sunni clerics apparently have warned that if this expected assault were to take place in Fallujah, that it will overall jeopardize the planned January elections. What's the Pentagon's response to that?

MCINTYRE: Well the Pentagon's response is that's a call that's going to be made by Prime Minister Allawi and he's made it clear that he believes that allowing terrorists to continue to conduct these attacks from Fallujah is the far greater evil and he's expected to make another statement tomorrow. But it appears that both the U.S. and the interim Iraqi government are in agreement that the insurgents have to be put out of business in Fallujah.

WHITFIELD: Jamie Mcintyre at the Pentagon. Thanks so much.

Well honorably discharged 13 years ago from the U.S. Army, a Gulf War veteran thought his active duty years were over until he eventually got called up to report for duty in Iraq. One man's fight in court to stay away from the front lines, here's Ron Mitutana from affiliate KHON.

(BEGIN VIDEOTAPE)

RON MITUTANA, KHON (voice over): David Myasato thought he said aloha to the army in 1996.

DAVID MYASATO, FORMER SOLDIER: I basically have all documentation of serving out my time. Eight years, eight is enough.

MITUTANA: But a month and a half ago he was stunned to receive these orders. You are relieved from your present reserve component status and ordered to report for a period of active duty. He was to report to North Carolina on November 9.

MYASATO: Being out 13 years now, and actually nine since my obligation, it was just something I never thought of. I have never thought I would get called back.

MITUTANA: He never thought he'd be called back to Iraq where he served in 1990 in Operation Desert Storm.

MYASATO: Basically, that's my job, to fuel anything out there. So it is a critical job, one of the most dangerous out there.

MITUTANA: The 34-year-old Myasato wrote a letter in September pointing out his enlistment expired many years ago. He got no response from the army. Neither did Myasato congressional leaders.

REP. ED CASE, (D) DISTRICT: We did for him what we do for anybody which is try get answers. We've written to the army and asked them to explain this in a way he can understand and that I can understand.

MITUTANA: But he's not alone. In June the army announced as many as 5,600 reservists would be recalled to active duty, particularly those with critical specialties like him.

ERIC SEITZ, MYASATO'S ATTORNEY: From my perspective I think they are trying to get warm bodies, any place, anywhere they can.

MITUTANO: This afternoon, the army responded. Granting Myasato a 30-day delay.

(END VIDEOTAPE)

WHITFIELD: That report coming from Ron Mitutano from affiliate KHON.

Well news from around the world now. In Afghanistan talks are underway aimed at freeing three United Nation workers kidnapped by militants. The hostage takers want Afghanistan's government to free 26 Taliban prisoners by Tuesday. The situation is still very sense in the Ivory Coast. French troops have been deployed to the West African nation to protect some 15,000 French citizens from mob violence.

In England six people died last night when a high speed train derailed after hitting a car at a rail crossing. The accident happened about 40 miles west of London.

The latest example of a growing divide between some Arab and western points of view, 26 scholars and preachers from Saudi Arabia have published an open letter to the Iraqi people urging them to support the militants who are fighting U.S. forces. Tonight Nic Robertson brings us a unique look inside is Saudi Arabia a kingdom on the brink.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN CORRESPONDENT (voice over): (INAUDIBLE) believes much has changed since his years. When all they had to watch was one channel of state TV. He feels a generation apart.

UNIDENTIFIED MALE: They are growing up with Internet. With 50 channels from all around the world. So they are overwhelmed by the amount of information, by the pressures they are facing.

ROBERTSON: He calculates so few in his audience watch state controlled TV that he puts his ads on more exciting programs broadcast from outside Saudi Arabia. But, he says, young people are confused by satellite TV. They love Hollywood movies but get an entirely different message about America from Arab news channels.

UNIDENTIFIED MALE: They are friendly. Friendly faces and then they turn into another -- news channel and they see their own brothers being killed, all around the world, being oppressed. They are saying, wait a minute, what is going on here?

ROBERTSON: With a group of friends Isa (ph) is fighting back making programs designed to quell anger with understanding. They discuss the trip to ground zero in New York to show Saudis a different face of the United States. Not the images from Iraq. Most see on their TVs every day. Isa (ph) argues with Ahmed, one of the anchors of the show.

UNIDENTIFIED MALE: It is wrong to kill a woman whether it is in Israel, Palestine, Iraq, the U.S. I don't care.

UNIDENTIFIED MALE: That's fine. This is your opinion.

UNIDENTIFIED MALE: This is not my opinion, it's human.

UNIDENTIFIED MALE: Yes but we're talking about why we are going and actually --

ROBERTSON: What divides them is what fuels anger in Saudi Arabia. The morality that the U.S. occupation in Iraq.

UNIDENTIFIED MALE: Time to go and see why is the U.S. doing this. Understand from them why they have support. Why do they invade Iraq.

ROBERTTSON: A month later I joined Isa (ph) and his team at ground zero. Once he was a student in this country. This is the first time he has been back since September 11.

UNIDENTIFIED MALE: I think it is more than I expected. I expected feel something, but this is even more than what I expected.

(END VIDEOTAPE)

WHITFIELD: And join us tonight for an all new CNN presents "Kingdom on the Brink." The battle for Saudi Arabia is at 8:00 p.m. Eastern.

Here in the states a hiring spree. In October led to the biggest job search in seven months. Do economists smell a trend? The predictions and a breakdown of the numbers when we come back.

Plus -- a humorous breakdown of this week's presidential election, courtesy, Conan, John, Jay, Dave, late night laughs coming up in a few minutes. (COMMERCIAL BREAK)

WHITFIELD: More of "CNN Live Sunday." In a little over an hour from now with Carol Lin.

CAROL LIN, CNN CORRESPONDENT: That is right, I'm going to be talking and getting a rare interview with Rohane Gotarata (ph) the man who wrote the definitive book on Al Qaeda, inside Al Qaeda, about the Osama Bin Laden tape. He has an interesting perspective on what Osama really intended with the latest tape.

WHITFIELD: The latest tape.

LIN: With the latest tape the weekend before the election. And then at 10:00 we're going to be talking about the confusing picture of Yasser Arafat with Senator George Mitchell who is one of the authors of the "Road Map to Peace" and what he expects the going to happen and why the Palestinians are playing a public relations game right now with Yasser Arafat's health. It is going to be interesting.

WHITFIELD: All right lots of developments on that.

LIN: Thanks Fred.

WHITFIELD: Thanks. All right. Well, a new labor department report says the economy added hundreds of thousands of new jobs in October, far exceeding economist's expectations. Joining us now from Chicago to talk about these new jobs is John Challenger, he's a CEO of Challenger, Gray and Christmas. And analyses work place trends. All right good to see you John.

JOHN CHALLENGER, CEO, CHALLENGER, GRAY & CHRISTMAS: Nice to be here.

WHITFIELD: All right well I think there's quite a contradiction is there not coming with the labor department saying 300,000 new jobs created in the month of October yet it was just two weeks ago that we also heard the labor department say 300,000 plus more people applied for unemployment benefits. So which is it?

CHALLENGER: Well these -- this was a whacky report, no question. But they survey two different groups in this report. They survey businesses on the one hand asking about employment. They survey individuals. They sometimes don't go together. What happened here was that more people entered the work force than the jobs were created. That pushed unemployment up even though there were 300,000 new jobs created in the month.

WHITFIELD: So should this be considered encouragement for people who are out of work?

CHALLENGER: It should be considered encouragement. It is a sign that the economy is creating jobs again. If it can continue and get -- be sustained job growth momentum like we saw from March to April, that's going to be good news for the economy and for workers.

WHITFIELD: What kind of jobs are we talking about?

CHALLANGER: We saw jobs created in a number of categories. Healthcare has been a strong growing area for the last year. It continues to be so with a new prescription drug cards that should make more medicine, modern medicines available for seniors, lower income people. That should help jobs in the area.

WHITFIELD: Does it seem to be at all regional?

CHALLANGER: It seems -- that the only area that was perhaps not so strong was the Midwest. Manufacturing lost 5,000 jobs.

WHITFIELD: And now with the election behind us, what kind of signal is being sent to employers out there? Many of whom were reluctant to put up the help want wanted signs, uncertain about who was going to end up in the White House?

CHALLANGER: Well that is the big hope. This election did not go on and on after Election Day. That was good news for employers. Many companies have been making strong profits, they haven't been investing those back into more technology and more people, if that really happens, if business owners and CEOs, all of a sudden become more optimistic again, that's going to be very good news for the economy and for hiring.

WHITFIELD: At the same time, usually this time of year, you are heading into the holidays, a lot of employers want to wait until at least the first of the year before they start assessing the employment picture for those companies. Throughout the next year. Is that likely to be trend that we will see?

CHALLANGER: Certainly, the last quarter of the year is the heaviest time for downsizing. We see that up about 20 percent each year in the fourth quarter. Many companies hit year end, their budgets are being formed for the next year just as you say, so they put off some of the hiring plans and they do the cutting, the companies that have not performed well to get their profits and earnings back in line for Wall Street.

WHITFIELD: So what's your best advice for those looking for a job? An awful lot of people looking for jobs.

CHALLANGER: This is certainly a better time, the election is done. Downtown want to wait until January. That's for sure. Try to get ahead of the game. The holiday time is a good time to go out to party, to meet people to get engages and that is often the key to finding another job quickly.

WHITFIELD: All right John Challanger thanks so much.

CHALLANGER: Thank you.

WHITFIELD: When we come back, the lighter side of politics. We'll check out this week's edition of late night laughs straight ahead. ROB MARCINANO, METEOROLIGIST: I'm Rob Marcinao the CNN Weather Center. It's time to take a look at the cold and flu report. The states that are highlighted in green on this map indicate that CDC has been getting reports of flu. Maybe some cold, as well. Alaska, we're going to California, Nevada, Idaho, a lot of states in the northern tier, Wisconsin, Michigan, Indiana, Tennessee, looking at New York City, New York State, upstate and Long Island, also Connecticut and the state of Florida. Folks at least right now not feeling all that well. Hope you are doing all right today and enjoy the rest of your weekend.

(COMMERCIAL BREAK)

WHITFIELD: News across America now, in South Carolina it's been a weekend of reunions and remembrances on the 60th anniversary of the Tuskegee Airmen. Almost 1,000 African Americans pilots were trained to join the fight against the Nazis during World War II, the program changed the way the military looked at race.

Now to the big apple. A British woman and a South African man won the New York City marathon today, the women's race was a nail biter, Paula Radcliffe crossed the finish line just four seconds before a Kenyans competitor.

And it was an incredible weekend for the incredible, the Disney Pixar film was top at the box office earning more than $70 million. The biopic "Ray" was in second place followed by the thriller "The Grudge."

The hard thought presidential election was hardly a laughing matter to many people but it was still getting a share of attention on late night television or perhaps the old adage that laughter is the best medicine applies. Here's a sampling.

(BEGIN VIDEO CLIP)

CONAN O'BRIEN: So let's take a look right now as how the world is reacting to President Bush's reelection.

UNIDENTIFIED MALE: This race is all but over. President Bush is our projected winner in the state of Ohio.

UNIDENTIFIED MALE: Today's concession came after a long night during which news channels focused on swing states. Voter turn-out in the case of CNN, a massive TV clearance sale at Circuit City.

DAVID LETTERMAN: You have you to feel bad for John Kerry because now he will have to go back to his life of being a senator, wind surfer and a billionaire, so that is to bad.

GEORGE W. BUSH: Reaching these goals will require the broad support of Americans. So today I want to speak to every person who voted for my opponent.

JON STEWART: You can run but you can't hide!

SENATOR JOHN KERRY: Thanks to Elana Wexler eleven years who started Kids for Kerry all across our county.

STEWART: Oh my god, I know why he lost. You have to be 18 to vote.

(END VIDEO CLIP)

WHITFIELD: All right. That's going to do it for us. "Next@CNN" is straight ahead, here is Daniel Sieberg with a preview.

DANIEL SIEBERG, CNN CORRESPONDENT: Ahead on Next@CNN a postmortem on e-voting. A way to make your own prescription glasses and see how Martha Stewart has gone to the dog, well sort of.

WHITFIELD: Well thanks for joining us. I'll be back with headlines right after a quick break.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired November 7, 2004 - 16:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: U.S. Marine artillary lights up the skies over Falluja, setting the stage for an expected all-out offensive on the Iraqi city.
Paltestinian officials have something new to say about the health of Yasser Arafat.

And he fought for a second chance and won. Now, can President Bush avoid a second term curse. History isn't on his side.

Hello and welcome to CNN LIVE SUNDAY. I'm Fredricka Whitfield. All that and more after a look at these headlines.

Critically ill Palestinian leader Yasser Arafat will get some high profile visitors tomorrow. Palestinian Prime Minister Ahmed Qorei and former Prime minister Mahmoud Abbas are heading to the Paris hospital where Arafat remains in a coma. Qorei and Abbas are leading contenders to replace arafat.

Back in the U.S., gas prices are heading south. The cost of a gallon of self-serve regular regular almost three cents over the past two weeks, that's according to the Lundberg survey. The average price is now $2.01.

And the star of such Hollywood classics as "Kiss Me Kate" and "Showboat" has died. Howard Keel was 85. His baritone and his broad shouldered 6'4" inch frame made him an ideal leading men in the era of big movie musicals. Younger fans may remember him as Clayton Farlow on the TV series Dallas.

Up first this hour, U.S. and Iraqi troops are poised for an expected showdown with rebels in Falluja. There's been a steady rumble of gun and artillary fire in that region whre it is currently night fall.

Elsewhere in Iraq, violence has flaired up. And now most of the country is under a state of emergency. CNN's senior international correspondent Nic Robertson has a report from Baghdad.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Just minutes after the state of emergency was declared, this ambulance raced through Baghdad's streets, on its way to the aftermath of a car bombing near the home of Iraq's interim finance minister. Only moments before, a government spokesman blamed, quote, "continuous crimes by terrorists" as the reason behind the state of emergency.

THAIR HASSAN AL-NAQEER, IRAQI GOVT. SPOKESMAN (through translator): We have decided to declare the state of emergency throughout Iraq except for Kurdistan in the north, and for 60 days.

ROBERTSON: At the same time, Prime Minister Iyad allawi met with his security chiefs. His own powers will be strengthened as a result of the declaration, granting him extraordinary authorities that he can delegate to civilian and military officials.

He is also empowered to commence speedy military and security decisions, seek the assistance of the multinational force, impose curfews, control communications, restrict transportation. Measures which, in some cases, the transitional government has also implemented on occasion over the past few months. Allawi, however, urged insurgents to heed his new authority.

AYAD ALLAWI, INTERIM IRAQI PRIME MINISTER: This will send a very powerful message that we are serious. We want the election to take place. We want to secure the country so elections could be done in a peaceful way. And the Iraq people can participate in the elections freely without intimidation.

ROBERTSON: Earlier in the day, insurgents sent their own powerful message. Apparently, coordinated rocket and gun attacks on three different police stations in an area about 120 miles northwest of Baghdad. They executed 9 policeman with no resistance says this resident. They took particular weapons. Made them stand up by the wall and shot them in one go. Local health officials report 21 dead including a senior police chief.

(on camera): To the south of Baghdad, a fire fight between insurgents and coalition and Iraqi forces killed at least 6 civilians and wounded 4 others. Too soon to say if the state of emergency is a state of fact, or an announcement that can reshape Iraqi's lives. Nic Robertson, CNN, Baghdad, Iraq.

(END VIDEOTAPE)

WHITFIELD: And more now on the planned offensive in Falluja with CNN's Karl Penhaul embedded with the U.S. Marines.

(BEGIN VIDEOTAPE)

KARL PENHAUL, CNN CORRESPONDENT (voice-over): These soldiers from the new Iraqi army will soon be charging into battle for real. They'll be fighting shoulder to shoulder with U.S. Marines against thousands of insurgents holed up in nearby Falluja.

SGT. MAJ SAEED SAKR, IRAQI SECURITY FORCES (through translator): These terrorists are evil men. They are hiding among families and children and kill the Iraqi people.

PENHAUL: The Iraqi soldiers are already familiar with the Soviet designed weapons they have been issued, but they are training for the first time on U.S. armored attack vehicles. (on camera): For many of the U.S. Marines, Falluja promises to be their first time in combat. On the other hand, for a lot of these Iraqi soldiers, they have already seen battles before. Some of them were part of the Pesh Merga resistance fighters.

(voice-over): Others are Shia Muslim from Southern Iraq.

Some analysts believe there's a risk those Pesh Merga and Shias, who were persecuted under Saddam Hussein and now soldiers, could try to reap revenge on Falluja. Staff sergeant muhammed says he's up for a fight but not out for revenge. The hard core of the cities rebels are believed to be either former Saddam loyalists, or Sunni Muslim radicals.

Staff Sergeant Mohammed Ahmed Mohammed, a former Pesh Merga, says he's up for a fight, but not out for revenge.

STAFF SGT. MOHAMMED AHMED, IRAQI SECURITY FORCES (through translator): They murder civilians and they hate the Iraqi security forces. I want to fight them as soon as possible, he says.

PENHAUL: Iraqi security forces have fought alongside U.S. troops before. But if they train for urban combat, they know Falluja will be the most critical battle together.

Interpreters play a key role trying to ensure nothing is lost in translation as tactics and orders are shared. Some of the U.S. advisers have also picked up a little Arabic.

UNIDENTIFIED MALE: We've been through a lot together in the last 7 months, we really have. And I'm going to be the one right there with them in the battle. So I feel confident they will do a really good job.

PENHAUL: Despite shows of confidence, the new Iraqi army does have problems. Some soldiers are undisciplined on the battlefield, according to some U.S. officers. U.S. military sources say another serious problem is desertion.

Karl Penhaul, CNN, near Falluja.

(END VIDEOTAPE)

WHITFIELD: And under military embed rules on operational security, we cannot report how desertion has affected this particular battle ready unit.

Let's take a closer look now at what coalition forces are up against with the planned assault taking place in urban surroundings of Falluja. Joining us now, CNN military analyst retired Marine Major General Terry Murray. Good to see you.

MAJ. GEN. TERRY MURRAY, (RET) CNN MILITARY ANALYST: Thank you, Fredricka.

WHITIFELD: Well, let's talk about what is at stake here. This was a highly populated dense city of Falluja, something like 200,000 of the 250,000 residents have fled leaving it to be like a ghost town. Let's talk about the obstacles that still are in place in the form of the infrastructure for the coalition forces. What are they up against, exactly?

MURRAY: Still a very difficult environment. We don't know exactly how many of the civilians have left, but it could be 50 percent, maybe closer to 75 percent. What that helps you with is that you don't have civilians getting in the way when you engage the bad guys.

We also expect that the insurgents and the terrorists have done work with roadside bombs, potentially mines, embedded, tank mines embedded in the roads. Snipers, I would expect, will be positioned in and around the city, assuming, now, that the insurgents have not left.

You know, we're guessing at -- it could be as few as a thousand or as many as 6,000 insurgents that are still in the city. And this is the first, and probably the most important question. And we won't know until the attack begins.

WHITFIELD: There may be other forms of booby traps in place, as well. Since there are something like 50,000 residents that remain in that city, that's the estimation, won't it be difficult for coalition forces to discern civilians from these insurgents if they have decided to stay?

MURRAY: Absolutely. We know that there is a large remaining population of locals who are still in the city. And we also know that these are Sunnis. And they are partisan to some, if not many, of the insurgents.

Consequently, these civilians will complicate everything that we're trying to do, because we are very, very careful not to take casualties among civilians. So the rules of engagements will have an effect on how we do business once we cross the line of departure.

WHITFIELD: And thus far within at least the last 24 hours the coalition has used terms like softening up the city in preparation for this expected assault. What does that mean exactly?

MURRAY: What that means, Fredricka, is that we have carefully targeted strategic and tactical targets in and around the city. Those could be positions where we think there are command and control centers of whatever leadership team they have in place there. It could also be weapons caches, potentially sites where our intelligence, probably human intelligence and electronic intelligence, has suggested that we have insurgents or terrorists.

So, in these past 3 days, there has been a very careful painstaking effort to reduce those targets. And really to shape the battlefield so that when we cross that line of departure, and our troops with the coalition forces go into the attack, we have created the best possible and most favorable conditions for things to go quickly and well. WHITFIELD: And over night, it is nighttime there now, actually, we have seen some new video of some -- what appear to be air assaults. At what point will air assaults be the primary part of the strategy before ground assaults then take place?

MURRAY: I have -- I can only guess what plan we have in place for air assault. I think with roughly 10,000 coalition forces, the numbers could be greater than that, crossing the starting point potentially tomorrow or later in the week, most of our forces, both the coalition, Iraqi forces and our own, will move in by vehicle and on foot.

What we may choose to do in an urban area, via air assault, I think will be quite limited. This attack is going to be conducted on the ground through a combination of foot mobil troops, wheeled vehicles and track vehicles. And the problem that you have in the city is that your ability to maneuver is greatly reduced, because everything is channelized inside a city like they are about to enter in Falluja.

WHITFIELD: All right. CNN military analyst retired Marine Major General Terry Murray. Thanks so much for joining us.

MURRAY: Thank you, Fredricka.

WHITFIELD: Well a former active duty U.S. soldier is being told to pack his bags for return to Iraq years after he left the army.

(BEGIN VIDEO CLIP)

UNIDNETIFIED MALE: Being out 13 years now, and actually nine since my obligation, it was something I never thought of.

(END VIDEO CLIP)

WHITFIELD: Why the U.S. army wants him back and why he's not going without a fight. Straight ahead.

Also, conflicting reports about the status of Yasser Arafat. The latest on his condition. And news of two high ranking leaders heading to his bedside.

Plus, a huge jump in jobs last month, but the unemployment rate still went up. I'll talk with a jobs analyst to find out how that happened.

(COMMERCIAL BREAK)

WHITFIELD: Now we turn to another developing story that will have a profound impact on the Middle East. Yasser Arafat remains alive in critical but stable condition at a Paris hospital. Both the current and former Palestinian prime ministers will visit the hospital tomorrow. CNN's Fionnuala Sweeney has the latest medical and political developments from there.

(BEGIN VIDEOTAPE) FIONNUALA SWEENEY, CNN CORRESPONDENT (on camera): A concerted effort underway now by the Palestinian Authority to dispel the rumors and counterrumors surrounding Yasser Arafat's health. A delegation is expected to leave Ramallah in the West Bank early Monday morning to travel to Paris. The delegation is thought to include the former Prime Minister Mahmoud Abbas who is also the deputy chairman of the P.L.O., also Ahmed Qorei and the foreign minister and Nabil Shaf (ph), the foreign minister.

They will come here to the Percy Military Hospital in West Paris to visit the ailing 75-year-old. And it is also thought there will be a meeting with the French President Jacques Chirac.

This development following a reported meeting between the Soha Arafat, the wife of the Palestinian Authority president, and Mohammed Dahlan, a senior Palestinian official. During that meeting, it is reported that the two agreed that more information concerning the status of Yasser Arafat's condition would be handed over to the Palestinian Authority.

No further news, though, about Yasser Arafat's health emerging. A hospital official saying on Sunday only that his condition remained the same as the last medical update given by the hospital on Friday. He remains in a stable, but critical condition.

Fionnuala Sweeney, CNN, Paris.

(END VIDEOTAPE)

WHITFIELD: Should Yasser Arafat die, the event will have both short-term and long-term implications for the Middle East. Joining me from Houston, Texas to look ahead is Mamoun Fandy, a senior fellow with both the Baker Institute at Rice University and the United States Institute of Peace. Good to see you.

MAMOUN FANDY, RICE UNIVERSITY: Good to see you, Fredricka.

WHITFIELD: All right. Well, it's been reported that the likely successor as president would be Mahmoud Abbas. But why, when the former prime minister apparently fell out with Yasser Arafat?

FANDY: Well, I think it is really more than just Mahmoud Abbas, Fredricka. If you look at, you know, Yasser Arafat, who he is, who has the qualifications to replace him, you need more than Mahmoud Abbas.

Arafat is really known as the Patriarch, Mr. Palestinian, the godfather, if you will, the potentate, all in one. And then you have Mahmoud Abbas who is a 69-year-old man. He's very smart, highly respected. With very legal power base in Palestine. But is very respected by the Israeli and Arab leaders in the region as well as Americans.

WHITFIELD: So, are you also suggesting, then, there has to be some sort of collective leadership? FANDY: I think there has to be at least a triade that includes Mahmoud Abbas as well as Ahmed Qorei who is travelling with him and also the man who you report presented as close to Soha Arafat, Mohammed Dahlan, a 43-years-old, a former security chief in Gaza. And he has both the charisma as well as the men with the guns on the ground.

So these are the people who can make up for Arafat.

WHITFIELD: But what about this Palestinian law that was drawn up by Arafat not that long ago that actually said in case of his death or illness that it would be the speaker of parliament who is Raoui Fattouh, who would actually take power. And apparently his name really isn't coming to the top as Ahmed Abbas and Ahmed Qorei's names are.

FANDY: Well, I mean, Raoui Fattouh is really a small player in Palestinian politics. I mean, this is really formal Palestinian politics, this is what's on paper, but the actuality is really what will make the difference, who has the actual power, the support. And not only just support within the Palestinian territories, but also acceptable to the Egyptians, the Jordanians and the Israelis. And this is why everybody is going to Paris to really kind of negotiate that deal where the French, the Egyptians, the Jordanians and even the Americans will sign on who will replace Arafat.

WHITFIELD: Well, what are you reading from these planned trips tomorrow with Qorei and Abbas? Do you think that we are likely to hear a bit more detail about the state of affairs of Yasser Arafat once those 2 get on the ground and visit him at the hospital?

FANDY: Well, the three items might emerge out of this. I think first of all who will replace Arafat? Who will be, also, acceptable to Soha, to the Palestinians, to the whole neighborhood? That's one.

Who has the money and how this money is going to be allocated? And what to do about the big unknown in the territory, and that's Hamas. And that's Ahmed Qorei went to talk to them, Hamas and Islamic Jihad yesterday.

And this is sort of really a meeting to draw out all the elements, including even in worst-case scenario if Arafat dies. Where will he be buried? and what's the compromise on that.

WHITFIELD: And what do you believe the compromise might eventually be on that?

FANDY: Well, I think the compromise --- I mean, Arafat's family has a lot in Gaza for the family. But I think Arafat's wish was to be buried in Jerusalem. The Israelis are adamant against that. What we will get is a compromise that's a small town near Jerusalem that called Abudes (ph), which was suggested at one point as the Capitol for the coming Palestinian state.

WHITFIELD: Is that a compromise that would in any way spark any unrest among the Palestinian people that Arafat's wishes were not carried out exactly like he would want?

FANDY: Well, unrest is really what we are going to see Fredricka. As I said, all the factors point to no matter even a whole team of three as well as the complexity of issues will not replace Arafat. And we're likely to see more unrest afterwards.

WHITFIELD: All right. Mamoun Fandy, thanks so much for joining us from Houston.

FANDY: Thank you.

WHITFIELD: President Bush's right-hand man is now speaking out about the next 4 years. Coming up, what Republican strategist Karl Rove has to say about the economy and the Bush administration.

And then, the second term curse. Is it just an urban legend? CNN's Bill Schneider tries to find out. That's coming up on CNN LIVE SUNDAY.

(COMMERCIAL BREAK)

WHITFIELD: Five days after the election the man President Bush calls the architect of his campaign is speaking out. Karl Rove recalls feeling rather sick when he read exit polls tilting towards John Kerry on election day. But he said President Bush's eventually victory is proof the country has moved in a Republican direction. Rove is looking forward to the president's second term. He outlined a plan to keep the country economically competitive.

(BEGIN VIDEO CLIP)

KARL ROVE, BUSH CAMPAIGN CHIEF STRATEGIST: We got a lot of competition around the world. And it's -- the competition for American companies is no longer in the next county or the next state, it's on the other side of the globe. And to be able to compete we have to improve our education system, our litigation environment, our tax code, our health system and our trading policies if we're going to be as strong economically in the years ahead.

(END VIDEO CLIP)

WHITFIELD: Rove says he hopes Republicans will be governing or be rather the governing party for decades.

One of the Democratic Party's new stars is calling for Democrats and Republicans to find common ground. Senator-elect Barack Obama of Illinois says divisive politics are bad for the country. And he responds to Rove's comments about the economy and other issues.

(BEGIN VIDEO CLIP)

BARACK OBAMA, (D) SENATOR-ELECT ILLINOIS: How we make sure that the middle class is, in fact, sustainable in this global competition or we're talking about how we provide the education that our children need so that they can succeed, those are issues where we all share, I think, success. And one of the things I told the president was that we all have a stake in seeing him have a successful presidency.

I don't think that the Democrats succeed by rooting against the president in office, but we have to be honest where we disagree with him and he's got to make his case where he's presenting issues that we're skeptical about.

(END VIDEO CLIP)

WHITFIELD: Obama is already beginning to field questions about his political future. He says he is committed to serving a full six- year term as a newly elected U.S. senator.

Well what could the next 4 years bring for President Bush? Well, if history is any guide, he may be in for some rough waters. CNN's senior political analyst Bill Schneider explains.

(BEGIN VIDEOTAPE)

SEN. JOHN KERRY, (D) MASSACHUSETTS: No one thought it was possible...

BILL SCHNEIDER, CNN POLITICAL ANALYST (voice-over): President Bush has beaten John Kerry, now he's got to beat a bigger challenge: the second-term curse. Second terms have usually been disasters. Franklin Roosevelt won a landslide reelection victory in 1936 then he made the mistake of taking on the Supreme Court.

ROBERT DALLER, PRESIDENTIAL HISTORIAN: Tried that court packing plan, and he fell on his face so to speak. He never would have been elected to a third term if it hadn't been for World War II.

SCHNEIDER: Everybody remembers Harry Truman's surprise reelection victory in 1948, but few remember how unpopular Truman became in his second term.

DALLER: Truman's second term, he had a 32, 33 percent approval rating because of the frustration over the Korean War.

SCHNEIDER: Dwight Eisenhower had a major recession in his second term. Plus, big international problems.

DALLER: He had to deal with the U2 affair, and the terrible frustration over what was called the missile crisis, the Soviet Sputnik.

SCHNEIDER: Lyndon Johnson's second term was ruined by the Vietnam War.

Richard Nixon didn't have much a second term, a little problem called Watergate.

RICHARD NIXON, PRESIDENT OF THE UNITED STATES: I'm not a crook.

SCHNEIDER: Ronald Reagan had a problem called Iran-Contra.

RONALD REAGAN, PRESIDENT OF THE UNITED STATES: A few months ago I told the American people I did not trade arms to hostages. My heart and best intention still tell me that's true, but the facts and the evidence tell me it is not.

SCHNEIDER: Bill Clinton had a little problem called Monica.

WILLIAM CLINTON, PRESIDENT OF THE UNITED STATES: Indeed I did have a relationship with Miss Lewinsky that was not appropriate. In fact, it was wrong.

SCHNEIDER: What brings on the second-term curse?

UNIDENTIFIED MALE: What happens is presidents overstay their welcome.

SCHNEIDER: Having gotten elected twice, second-term presidents overreach. They assume they are above politics. When what they really are is lame ducks, cursed with diminishing political clout.

(on camera): President Bush really has just 2 years to seize initiative, because the president's party almost always faces a big setback at the sixth year midterm. It's called the six-year itch. It comes with the second term curse. Bill Schneider, CNN, Washington.

(END VIDEOTAPE)

WHITFIELD: A state of emergency is issued in Iraq amid an expected U.S. led offensive on Falluja. What can military action mean for Iraq's upcoming national elections? We'll look into that coming up.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I never thought I would get called back.

(END VIDEO CLIP)

WHITFIELD: Ordered to report for active duty 8 years after he left the army, actually 13 years after he left the army, this former soldier isn't packing his bags. He's filed a lawsuit.

(COMMERCIAL BREAK)

WHITFIELD: Now in the news, a new survey says the price of gasoline is going down, reversing a trend that began in early September. The average price of a gallon of self-serve regular is $2.01. That's down nearly three cents over the past two weeks.

The Palestinian foreign minister tells CNN PLO leader Yasser Arafat is in a coma "that's reversible." Foreign minister says the currant and former Palestinian prime ministers will travel to Paris tomorrow where Arafat is being treated for a still undisclosed aliment.

A new report says the number of women in state and federal prisons has reached an all-time high. The federal report says the female prison population has topped 100,000 for the first time and is increasing at a rate twice as fast as men.

The latest now on our top story. The planned assault on the Iraqi rebel strong hold of Fallujah. A pool reporter says Iraqi forces took over the main hospital in that city. There was no resistance. Thousands of U.S. marines and Iraqi forces are poised along the outskirts of the city waiting for the word to move in saying Iraq is serious about cracking down on insurgents. Interim Prime Minister Allawi declared a 60-day state of emergency. It is in effect for all but the Kurdish north.

Meantime, Iraq saw a new wave of violence today. A U.S. soldier was among 32 people killed in a serious of car bombings, shootings and gun battle.

Down in the capital in Latifiya a battle between insurgents and coalition and Iraqi forces left six civilians dead.

Well the offensive is aimed at securing Fallujah before the January elections. CNN's Jamie Mcintyre is standing by live at the Pentagon with more on this. Jamie.

JAMIE MCINTYRE, CNN CORRESPONDENT: Well, U.S. troops encircling Fallujah are anxious to take the offensive after months of being on the receiving end of suicide attacks and car bombs. Today they got a pep talk with the three star general who is in command of the operation.

(BEGIN VIDEO CLIP)

GEN. JOHN SATTLER, U.S. MARINE CORPS: This town is being held hostage. By thugs, murders and intimidators. All they need is for us to give them the opportunity to break the back of that intimidation. To go in there is and stomp it out where it needs to be stomped. And then the sun will come through.

(END VIDEO CLIP)

MCINTYRE: Well, confident the victory the U.S. military sunned no illusions the battle of Fallujah will be the insurgents last stand. The military objective here is limited to driving the insurgents out, returning control to local leaders, who can work with the central government in Baghdad. So the city can take part in elections set for January. Pentagon officials say it's not expected that this assault will, quote, break the back of the insurgency nor is it expected that it will result in the capture or killing of Abu Musab Al Zarqawi, the terrorist leader who is thought to have been using Fallujah as a base of operations.

Pentagon officials say he may well have slipped out of the town given how well telegraphed this operation was, how long it's been coming. But as you mention, the Iraq prime minister who will give the order for the attack has put most of the country under a state of emergency law. Which he says is important to send a message to the terrorists.

(BEGIN VIDEO CLIP) AYAD ALLAWI, INTERIM IRAQI PRIME MINISTER: This will send a very powerful message that we are serious. We want elections to take place. We want to secure the country so elections can be done in a peaceful way and the Iraqi people can participate in the elections. Freely without intimidation by terrorists and by forces who are trying to wreck the political process in Iraq and to bring death and destruction to Iraq.

(END VIDEO CLIP)

MCINTYRE: Big question mark will be the performance of those Iraqi troops who are along side the U.S. forces so far so good. The report tonight from CBS News pool reporter is that the hospital outside of Fallujah, just outside Fallujah the main hospital, has been taken without a shot being fired by a group of Iraqi special forces who broke in the hospital kicked down doors and managed to take control. Now it's unclear if this is a beginning of a bigger offensive or one of the preliminary operations that's taking place in order to lay the groundwork for the major push into the city. Back to you.

WHITFIELD: And Jamie outside of Fallujah, Sunni clerics apparently have warned that if this expected assault were to take place in Fallujah, that it will overall jeopardize the planned January elections. What's the Pentagon's response to that?

MCINTYRE: Well the Pentagon's response is that's a call that's going to be made by Prime Minister Allawi and he's made it clear that he believes that allowing terrorists to continue to conduct these attacks from Fallujah is the far greater evil and he's expected to make another statement tomorrow. But it appears that both the U.S. and the interim Iraqi government are in agreement that the insurgents have to be put out of business in Fallujah.

WHITFIELD: Jamie Mcintyre at the Pentagon. Thanks so much.

Well honorably discharged 13 years ago from the U.S. Army, a Gulf War veteran thought his active duty years were over until he eventually got called up to report for duty in Iraq. One man's fight in court to stay away from the front lines, here's Ron Mitutana from affiliate KHON.

(BEGIN VIDEOTAPE)

RON MITUTANA, KHON (voice over): David Myasato thought he said aloha to the army in 1996.

DAVID MYASATO, FORMER SOLDIER: I basically have all documentation of serving out my time. Eight years, eight is enough.

MITUTANA: But a month and a half ago he was stunned to receive these orders. You are relieved from your present reserve component status and ordered to report for a period of active duty. He was to report to North Carolina on November 9.

MYASATO: Being out 13 years now, and actually nine since my obligation, it was just something I never thought of. I have never thought I would get called back.

MITUTANA: He never thought he'd be called back to Iraq where he served in 1990 in Operation Desert Storm.

MYASATO: Basically, that's my job, to fuel anything out there. So it is a critical job, one of the most dangerous out there.

MITUTANA: The 34-year-old Myasato wrote a letter in September pointing out his enlistment expired many years ago. He got no response from the army. Neither did Myasato congressional leaders.

REP. ED CASE, (D) DISTRICT: We did for him what we do for anybody which is try get answers. We've written to the army and asked them to explain this in a way he can understand and that I can understand.

MITUTANA: But he's not alone. In June the army announced as many as 5,600 reservists would be recalled to active duty, particularly those with critical specialties like him.

ERIC SEITZ, MYASATO'S ATTORNEY: From my perspective I think they are trying to get warm bodies, any place, anywhere they can.

MITUTANO: This afternoon, the army responded. Granting Myasato a 30-day delay.

(END VIDEOTAPE)

WHITFIELD: That report coming from Ron Mitutano from affiliate KHON.

Well news from around the world now. In Afghanistan talks are underway aimed at freeing three United Nation workers kidnapped by militants. The hostage takers want Afghanistan's government to free 26 Taliban prisoners by Tuesday. The situation is still very sense in the Ivory Coast. French troops have been deployed to the West African nation to protect some 15,000 French citizens from mob violence.

In England six people died last night when a high speed train derailed after hitting a car at a rail crossing. The accident happened about 40 miles west of London.

The latest example of a growing divide between some Arab and western points of view, 26 scholars and preachers from Saudi Arabia have published an open letter to the Iraqi people urging them to support the militants who are fighting U.S. forces. Tonight Nic Robertson brings us a unique look inside is Saudi Arabia a kingdom on the brink.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN CORRESPONDENT (voice over): (INAUDIBLE) believes much has changed since his years. When all they had to watch was one channel of state TV. He feels a generation apart.

UNIDENTIFIED MALE: They are growing up with Internet. With 50 channels from all around the world. So they are overwhelmed by the amount of information, by the pressures they are facing.

ROBERTSON: He calculates so few in his audience watch state controlled TV that he puts his ads on more exciting programs broadcast from outside Saudi Arabia. But, he says, young people are confused by satellite TV. They love Hollywood movies but get an entirely different message about America from Arab news channels.

UNIDENTIFIED MALE: They are friendly. Friendly faces and then they turn into another -- news channel and they see their own brothers being killed, all around the world, being oppressed. They are saying, wait a minute, what is going on here?

ROBERTSON: With a group of friends Isa (ph) is fighting back making programs designed to quell anger with understanding. They discuss the trip to ground zero in New York to show Saudis a different face of the United States. Not the images from Iraq. Most see on their TVs every day. Isa (ph) argues with Ahmed, one of the anchors of the show.

UNIDENTIFIED MALE: It is wrong to kill a woman whether it is in Israel, Palestine, Iraq, the U.S. I don't care.

UNIDENTIFIED MALE: That's fine. This is your opinion.

UNIDENTIFIED MALE: This is not my opinion, it's human.

UNIDENTIFIED MALE: Yes but we're talking about why we are going and actually --

ROBERTSON: What divides them is what fuels anger in Saudi Arabia. The morality that the U.S. occupation in Iraq.

UNIDENTIFIED MALE: Time to go and see why is the U.S. doing this. Understand from them why they have support. Why do they invade Iraq.

ROBERTTSON: A month later I joined Isa (ph) and his team at ground zero. Once he was a student in this country. This is the first time he has been back since September 11.

UNIDENTIFIED MALE: I think it is more than I expected. I expected feel something, but this is even more than what I expected.

(END VIDEOTAPE)

WHITFIELD: And join us tonight for an all new CNN presents "Kingdom on the Brink." The battle for Saudi Arabia is at 8:00 p.m. Eastern.

Here in the states a hiring spree. In October led to the biggest job search in seven months. Do economists smell a trend? The predictions and a breakdown of the numbers when we come back.

Plus -- a humorous breakdown of this week's presidential election, courtesy, Conan, John, Jay, Dave, late night laughs coming up in a few minutes. (COMMERCIAL BREAK)

WHITFIELD: More of "CNN Live Sunday." In a little over an hour from now with Carol Lin.

CAROL LIN, CNN CORRESPONDENT: That is right, I'm going to be talking and getting a rare interview with Rohane Gotarata (ph) the man who wrote the definitive book on Al Qaeda, inside Al Qaeda, about the Osama Bin Laden tape. He has an interesting perspective on what Osama really intended with the latest tape.

WHITFIELD: The latest tape.

LIN: With the latest tape the weekend before the election. And then at 10:00 we're going to be talking about the confusing picture of Yasser Arafat with Senator George Mitchell who is one of the authors of the "Road Map to Peace" and what he expects the going to happen and why the Palestinians are playing a public relations game right now with Yasser Arafat's health. It is going to be interesting.

WHITFIELD: All right lots of developments on that.

LIN: Thanks Fred.

WHITFIELD: Thanks. All right. Well, a new labor department report says the economy added hundreds of thousands of new jobs in October, far exceeding economist's expectations. Joining us now from Chicago to talk about these new jobs is John Challenger, he's a CEO of Challenger, Gray and Christmas. And analyses work place trends. All right good to see you John.

JOHN CHALLENGER, CEO, CHALLENGER, GRAY & CHRISTMAS: Nice to be here.

WHITFIELD: All right well I think there's quite a contradiction is there not coming with the labor department saying 300,000 new jobs created in the month of October yet it was just two weeks ago that we also heard the labor department say 300,000 plus more people applied for unemployment benefits. So which is it?

CHALLENGER: Well these -- this was a whacky report, no question. But they survey two different groups in this report. They survey businesses on the one hand asking about employment. They survey individuals. They sometimes don't go together. What happened here was that more people entered the work force than the jobs were created. That pushed unemployment up even though there were 300,000 new jobs created in the month.

WHITFIELD: So should this be considered encouragement for people who are out of work?

CHALLENGER: It should be considered encouragement. It is a sign that the economy is creating jobs again. If it can continue and get -- be sustained job growth momentum like we saw from March to April, that's going to be good news for the economy and for workers.

WHITFIELD: What kind of jobs are we talking about?

CHALLANGER: We saw jobs created in a number of categories. Healthcare has been a strong growing area for the last year. It continues to be so with a new prescription drug cards that should make more medicine, modern medicines available for seniors, lower income people. That should help jobs in the area.

WHITFIELD: Does it seem to be at all regional?

CHALLANGER: It seems -- that the only area that was perhaps not so strong was the Midwest. Manufacturing lost 5,000 jobs.

WHITFIELD: And now with the election behind us, what kind of signal is being sent to employers out there? Many of whom were reluctant to put up the help want wanted signs, uncertain about who was going to end up in the White House?

CHALLANGER: Well that is the big hope. This election did not go on and on after Election Day. That was good news for employers. Many companies have been making strong profits, they haven't been investing those back into more technology and more people, if that really happens, if business owners and CEOs, all of a sudden become more optimistic again, that's going to be very good news for the economy and for hiring.

WHITFIELD: At the same time, usually this time of year, you are heading into the holidays, a lot of employers want to wait until at least the first of the year before they start assessing the employment picture for those companies. Throughout the next year. Is that likely to be trend that we will see?

CHALLANGER: Certainly, the last quarter of the year is the heaviest time for downsizing. We see that up about 20 percent each year in the fourth quarter. Many companies hit year end, their budgets are being formed for the next year just as you say, so they put off some of the hiring plans and they do the cutting, the companies that have not performed well to get their profits and earnings back in line for Wall Street.

WHITFIELD: So what's your best advice for those looking for a job? An awful lot of people looking for jobs.

CHALLANGER: This is certainly a better time, the election is done. Downtown want to wait until January. That's for sure. Try to get ahead of the game. The holiday time is a good time to go out to party, to meet people to get engages and that is often the key to finding another job quickly.

WHITFIELD: All right John Challanger thanks so much.

CHALLANGER: Thank you.

WHITFIELD: When we come back, the lighter side of politics. We'll check out this week's edition of late night laughs straight ahead. ROB MARCINANO, METEOROLIGIST: I'm Rob Marcinao the CNN Weather Center. It's time to take a look at the cold and flu report. The states that are highlighted in green on this map indicate that CDC has been getting reports of flu. Maybe some cold, as well. Alaska, we're going to California, Nevada, Idaho, a lot of states in the northern tier, Wisconsin, Michigan, Indiana, Tennessee, looking at New York City, New York State, upstate and Long Island, also Connecticut and the state of Florida. Folks at least right now not feeling all that well. Hope you are doing all right today and enjoy the rest of your weekend.

(COMMERCIAL BREAK)

WHITFIELD: News across America now, in South Carolina it's been a weekend of reunions and remembrances on the 60th anniversary of the Tuskegee Airmen. Almost 1,000 African Americans pilots were trained to join the fight against the Nazis during World War II, the program changed the way the military looked at race.

Now to the big apple. A British woman and a South African man won the New York City marathon today, the women's race was a nail biter, Paula Radcliffe crossed the finish line just four seconds before a Kenyans competitor.

And it was an incredible weekend for the incredible, the Disney Pixar film was top at the box office earning more than $70 million. The biopic "Ray" was in second place followed by the thriller "The Grudge."

The hard thought presidential election was hardly a laughing matter to many people but it was still getting a share of attention on late night television or perhaps the old adage that laughter is the best medicine applies. Here's a sampling.

(BEGIN VIDEO CLIP)

CONAN O'BRIEN: So let's take a look right now as how the world is reacting to President Bush's reelection.

UNIDENTIFIED MALE: This race is all but over. President Bush is our projected winner in the state of Ohio.

UNIDENTIFIED MALE: Today's concession came after a long night during which news channels focused on swing states. Voter turn-out in the case of CNN, a massive TV clearance sale at Circuit City.

DAVID LETTERMAN: You have you to feel bad for John Kerry because now he will have to go back to his life of being a senator, wind surfer and a billionaire, so that is to bad.

GEORGE W. BUSH: Reaching these goals will require the broad support of Americans. So today I want to speak to every person who voted for my opponent.

JON STEWART: You can run but you can't hide!

SENATOR JOHN KERRY: Thanks to Elana Wexler eleven years who started Kids for Kerry all across our county.

STEWART: Oh my god, I know why he lost. You have to be 18 to vote.

(END VIDEO CLIP)

WHITFIELD: All right. That's going to do it for us. "Next@CNN" is straight ahead, here is Daniel Sieberg with a preview.

DANIEL SIEBERG, CNN CORRESPONDENT: Ahead on Next@CNN a postmortem on e-voting. A way to make your own prescription glasses and see how Martha Stewart has gone to the dog, well sort of.

WHITFIELD: Well thanks for joining us. I'll be back with headlines right after a quick break.

(COMMERCIAL BREAK)

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