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CNN Live At Daybreak

Bush and Britain; Bush and France; Bush & The Middle East; Party Payments; Funding the Festivities; Risky Business

Aired January 20, 2005 - 05:30   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.


CAROL COSTELLO, CNN ANCHOR: Good morning to you, welcome to the second-half hour of DAYBREAK. From the TimeWarner Center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."

George W. Bush takes the oath of office at noon today for his second term as president of the United States. His inaugural address will emphasize his vision of spreading freedom and democracy worldwide. His speech will be followed by the traditional parade and a series of inaugural balls.

The FBI has alerted Boston area police to watch for four Chinese nationals described as possible terror suspects. The Massachusetts governor is calling a tip about an unspecified threat unsubstantiated and uncorroborated.

The U.N. General Assembly says relief for tsunami victims must extend beyond emergency aid to rebuilding homes and lives. The resolution, co-sponsored by 90 nations, also calls for a tsunami early warning system in the Indian Ocean.

And Republicans in Washington State are still fuming over losing the race for governor by 129 votes. They will try to convince a judge to set aside the election of the Democratic Governor Christine Gregoire. Democrats will ask the judge to dismiss the GOP motion.

To the Forecast Center now and, Chad, good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol, temperatures nice across a lot of the country. How are you doing this morning?

COSTELLO: I'm cold.

MYERS: Good, well, it's winter.

COSTELLO: Just a little.

MYERS: You asked to go to New York.

COSTELLO: I know.

MYERS: Should have asked to go to Miami.

(WEATHER REPORT)

MYERS: Carol, back to you.

COSTELLO: Thank you, Chad.

President Bush enters his second term facing strange relationships with traditional allies around the world. Want to take a closer look at the challenges ahead for the president and the impact a second Bush term would have worldwide.

Britain has been the president's staunchest ally in the war in Iraq. How will Britain and close friend Prime Minister Tony Blair shape a second Bush term?

Our European political editor Robin Oakley joins us live from London with more.

Good morning -- Robin.

ROBIN OAKLEY, CNN EUROPEAN POLITICAL EDITOR: Good morning, Carol.

Not very good news for George Bush's advisers, really. In some poll evidence coming out in Britain today, British Broadcasting Corporation, a poll of 22,000 people across 21 countries worldwide, and the finding of that poll, 58 percent of those polled believe that George Bush will be a negative effect on peace and security in the world over the next four years. Only 26 percent saying that he will be a positive effect.

Here in Britain, 64 percent saying that they don't think America will be a positive force in the world over the next four years. Better figures perhaps than France, 75 percent, Germany 77 percent, but that's a pretty negative rating in a country that has been George Bush's strongest ally over Iraq.

As for Tony Blair, well of course he's got the difficulty now, George Bush has fought and won his election. Tony Blair has got to fight an election this year tied to George Bush's coattails. Many British voters see him as George Bush's poodle. Huge demonstrations on the streets in Britain against the Iraq War, of course, when it was called.

And so not surprisingly, Tony Blair today is saying that he thinks George Bush, he's had an interview with "The Guardian" newspaper, he thinks George Bush will be more consensual over the next four years, that he will place more importance on multilateral institutions. Certainly Tony Blair badly needs him to do something on the Middle East -- Carol.

COSTELLO: Robin Oakley, live in London this morning, thank you.

International fence mending might be the toughest for President Bush in France, though, where fierce differences over the war in Iraq have caused, well, a lot of friction.

CNN's Jim Bittermann is in Paris.

Jim, what will it take to fix this relationship?

JIM BITTERMANN, CNN CORRESPONDENT: Well a lot of people here are asking that question at this very moment, Carol. As a matter of fact, there's a major conference on this morning, on the inauguration day, involving government ministers and parliamentary leaders and experts who are all debating, and will debate all day today, the question of what kind of transatlantic relation can we expect from the second Bush administration? So it's clearly something the French are quite concerned about from President Jacques Chirac on down.

There has been something of a charm offensive launched here over the last few weeks, people really want to try to develop what the French Foreign Minister called in an interview yesterday a new relationship with the United States. He gave an exclusive interview to CNN clearly wanting to send a message on inauguration day that the French are willing to start something new, to try to reach across the Atlantic.

However, he did sort of point to some limits in the interview. He said that there's no such thing as a one-way compromise, clearly expecting the United States to reach out as well. And he said a new relationship means that we respect each other and we like each other as allies. We are allies. Alliance is not submission he said. So there are clearly some limits to what the French are thinking, but they are making an effort, trying to mend fences over the next four years -- Carol.

COSTELLO: Jim Bittermann, live in France this morning, thank you.

Nowhere by President Bush have a greater chance to influence the world though than in the Middle East. A new coalition in Israel, along with a new Palestinian leader, presents the president with a new opportunity to be a peacemaker.

But as CNN's John Vause reports, actions will have to speak louder than words.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT (voice-over): Don't talk to Abu Mahmoud (ph) about a second Bush administration. He sells coffee in Ramallah's busy marketplace. The first four years, he says, were bad enough.

ABU MAHMOUD, COFFEE SELLER (through translator): Since he became involved in politics, there has only been disaster in the world. If you are talking about the U.S. today, its earthquakes and wars.

VAUSE: There is not a lot of hope among Palestinians that four more years of George Bush will do anything for a just and lasting peace with Israel. Most on these streets, like fruit seller Abu Jamar (ph), believe the U.S. is biased against them in favor of Israel.

ABU JAMAR, FRUIT SELLER (through translator): He has never put pressure on Israel to bring peace to the Middle East. VAUSE: With a new democratically elected leader, many Palestinian legislators say all they want is for the U.S. president to be involved and fair.

HANAN ASHRAWI, PALESTINIAN LEGISLATOR: An even-handed approach would be close to Americans. But we live in a land in which miracles have been known to happen.

VAUSE: Another marketplace, but this one in west Jerusalem, and in the past, a popular target for Palestinian suicide bombers. Like most Israelis, Shalom Caleba (ph), a government worker, believes George Bush has been a good friend to Israel.

SHALOM CALEBA, GOVERNMENT WORKER (through translator): I do believe he's capable of bringing peace. He has proved already he can act and act for the best.

VAUSE: As for the Israeli government, relations just couldn't be any better.

RA'ANAN GISSIN, ADVISER TO ISRAELI PRIME MINISTER: I don't think there was ever a time where we had stronger strategic cooperation, where we had warmer relations and when we had the kind of support and backing from the U.S. administration.

VAUSE: For a U.S. president in a second term, solving the Israeli-Palestinian conflict would mean a gilded-edge legacy.

(on camera): Both Presidents Reagan and Clinton tried and failed, so will anything be different this time? Well, for one thing, George W. Bush has an Israeli leader who trusts him, and for another, no Yasser Arafat to have to deal with.

John Vause, CNN, Jerusalem.

(END VIDEOTAPE)

COSTELLO: And stay with CNN throughout the day for live coverage of the nation's 55th inauguration. "GEORGE W. BUSH: THE ROAD AHEAD" all day right here on CNN.

So who is paying for all the fun in Washington this week? Stay with us to find out because we are naming names.

And another inaugural quiz question for you this morning, who was the first and only president to be sworn in by a woman? Do you know the answer? We'll have the answer for you just ahead.

(COMMERCIAL BREAK)

COSTELLO: Are you up and thinking this morning? Some inauguration day history for you. Here's the question: who was the first and only president to be sworn in by a woman? Look at the answer, Lyndon Johnson. He was sworn in by Federal Judge Sarah T. Hughes in 1963 after President Kennedy's assassination. The tough one, wasn't it? Do you ever wonder where the money is coming from to pay for the inauguration? Much of it is coming from private and corporate donors. For a mere $250,000 bucks, you can get tickets to the inaugural events, plus lunch with the president himself. But is it legal? You might be surprised.

CNN's Judy Woodruff takes a look.

(BEGIN VIDEOTAPE)

JUDY WOODRUFF, CNN CORRESPONDENT (voice-over): Who's paying for this and this and this? No, it's not you, the taxpayer, unless, of course, you want it to be.

DAN BARTLETT, WHITE HOUSE COUNSELOR: We're a nation at war. But we do believe it's important that through privately raised money that we ought to go forward with the inaugural festivities.

WOODRUFF: The fact is nearly half of the inaugural budget is made up of money from big business, huge companies and Wall Street rainmakers looking for an in with the administration. Under the campaign finance laws, these corporations are prohibited from giving directly to candidates, but there is no legal cap on the amount they can pump into the inaugural fund. And those who pony up likely expect a lot of bang for their bucks.

None of this is new. Corporations have funneled money into the inaugurations of past presidents, as well.

GEORGE HERBERT WALKER BUSH, FMR. PRESIDENT OF THE UNITED STATES: And I will faithfully execute the office of president...

WOODRUFF: But this is the first time the law requires the inaugural committee to disclose its list of donors.

THOMAS EDSALL, "WASHINGTON POST": It is an economic decision they're making. They're saying that it is worth the $250,000, $500,000, whatever, to do this, that the benefits flowing to their company or their trade association are well worth that investment.

WOODRUFF: So, let's follow the money. On its Web site, the inaugural committee lists 200 donors, more than half are corporations or firms. Among those who've given $250,000, hotel giant Marriott International, communications titan AT&T, pharmaceutical goliath Pfizer, and TimeWarner, the parent company of CNN.

EDSALL: There are a whole group of network of donors, all of which, or almost all of which have various interests with government that they pursue and find contributing to be a very beneficial part of the process.

WOODRUFF: And we're just talking about the official events here. All this week, lobbyists and corporations are wining and dining the powerful at a slew of private parties across Washington. And for shindigs like these, reporting requirements vary, making that money trail a tough one to follow. Judy Woodruff, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: Ali Velshi is here to talk more about this, because you're going to have a more extended story and you're going to name names.

ALI VELSHI, CNN DAYBREAK CONTRIBUTOR: Yes, I'm going to name names. In fairness, those names are available on a Web site put out by the inaugural committee. And you can draw a pretty clear link between the companies that are spending the kind of money that they can spend to contribute to the inaugural and the things that they might get in terms of access and recognition, including the fact that we will talk about them extensively and remind the powerbrokers in Washington.

COSTELLO: Well you talk about access, I know there was a party thrown by General Motors yesterday. The Transportation Secretary Norman Mineta attended.

VELSHI: Yes.

COSTELLO: As he was coming out, reporters put a microphone in his face. And he says hey, it's a party.

VELSHI: And this is the line that's very interesting, because there are some place in the world where you might say isn't that odd? But this is what it is it's a big party, and companies are saying things. We got comment from a number of companies. Home Depot, a big donor, says they're proud to join with a number of our nation's leading companies to bring this important event in our democratic process to the American people. And just comments like that.

COSTELLO: Well that is so disingenuous. Why don't they just come out and tell the truth? We're there to...

VELSHI: Yes, we're buying tickets, access, whatever it is that we're buying. And you know I can sleep at night knowing that that's happening for whatever reason. They're getting access and they'll remind these people when they need a meeting with them that we supported when.

COSTELLO: Well in case you missed it, viewers, our DAYBREAK e- mail "Question of the Day" is about those donations. Is the inauguration about corporate indulgence or is it a symbol of Democracy? We'll read some of your responses in just a few minutes. DAYBREAK@CNN.com if you want to still weigh in.

Your news, money, weather and sports. It's 5:47 Eastern. Here's what's all new this morning.

Full day of festivities in Washington, President Bush and Vice President Dick Cheney will be sworn in for their second term. The inauguration will be followed by the traditional parade and a series of inaugural balls. Some Democratic senators want to delay the confirmation of Condoleezza Rice as Secretary of State, at least until next week. Senate Minority Leader Harry Reid says those senators want to discuss the Rice nomination in floor debate.

In money news, the 6,400 pilots of bankrupt United Airlines will be taking a pay cut, a 12 percent pay cut, that is if they approve a proposed concession package. Voting will run through the end of January.

And in culture, say goodbye to Raymond and his family. After nine years, the sitcom "Everybody Loves Raymond" is calling it quits. The last taping is Friday. The sitcom ends its run on May 16.

And in sports, Chad, we're talking hockey.

MYERS: Right.

COSTELLO: National Hockey League officials and representatives of the Players Union get together today for a second round of talks. They're trying to save the season, half of which has already been missed. I mean would you really want to watch the rest of the season even if they went back on the ice?

MYERS: No, I think -- actually I think fans will boycott the rest of the season, I really...

COSTELLO: I think they should.

MYERS: ... even if they go back on. I think fans are that upset. Well, at least I am.

(WEATHER REPORT)

COSTELLO: Chad, I thought you would be interested in the menu, because I know that you are gourmand.

MYERS: Well, I'm an eater. I don't know what gourmand means, but.

COSTELLO: Yes, you are so funny.

MYERS: Yes.

COSTELLO: You do, too.

We want to talk about how the president will work up an appetite during the swearing in and inaugural address so afterward he, and Vice President Cheney and their wives, will dine with dignitaries and members of Congress on Capitol Hill.

MYERS: Right.

COSTELLO: So here's the menu. Are you ready?

MYERS: I'm ready, except for the steamed lemon pudding. COSTELLO: You don't think that sounds good?

MYERS: No.

COSTELLO: Scalloped crab sounds good.

MYERS: That's OK, yes.

COSTELLO: How about poached lobster?

MYERS: Sure.

COSTELLO: Roasted Missouri quail.

MYERS: See all of this stuff is from the U.S. it seems.

COSTELLO: Very American food. Chestnuts.

MYERS: Very -- yes. Roasting on an open fire.

COSTELLO: Brined root vegetables. What are brined root vegetables?

MYERS: Root vegetables like a potato.

COSTELLO: Carrot.

MYERS: A root, I guess that's a tuber.

COSTELLO: And it's salted, oh no.

MYERS: I'm not really up on my vegetables, Carol, as you know.

COSTELLO: OK, so you're not a gourmand, I was completely wrong about that, you're right. Apple wild cherry compote.

MYERS: That sounds good.

COSTELLO: That does sound good. The steamed lemon pudding is actually like cheesecake. So it's sort of like lemon cheesecake, it just sounds bad when you call it steamed lemon pudding.

MYERS: Don't put lemon in my cheesecake.

COSTELLO: We won't.

MYERS: Just butter.

COSTELLO: Just butter and lots of it.

MYERS: Correct.

COSTELLO: We're going to take a short break. We'll be back with much more on DAYBREAK.

(COMMERCIAL BREAK) COSTELLO: So far so good, a baby boy is in stable condition at Tulane Hospital for Children in New Orleans. In a rare and risky procedure, the infant was hooked up to a heart-lung machine before he was born.

Covering this story, Helena Moreno of our New Orleans affiliate WDSU.

(BEGIN VIDEOTAPE)

HELENA MORENO, WDSU-TV REPORTER (voice-over): He wasn't expected to survive, but here he is, now more than a week old, due to a breakthrough medical procedure.

DR. NANCY ROSS-ASCUITTO, PEDIATRIC CARDIOLOGIST: We decided to try it. We knew what the alternative was.

MORENO: Doctors determined that multiple heart defects made it impossible for the baby to survive long enough to put him on a bypass machine and then correct problems. So doctors attempted to attach the bypass machine, called ECMO, before the baby was actually born, only partially delivered by caesarean to his shoulders.

DR. WILLIAM GILL, NEONATOLOGIST: With the umbilical cord intact, attached to the placenta and therefore the mother was still supplying oxygen, carbon dioxide and nutrients.

MORENO: Once the baby was hooked up to ECMO, the umbilical cord was clamped and that's when he was officially born.

(on camera): Doctors at Tulane Hospital for Children say what they've been able to successfully perform is a very risky procedure. In fact, they say, this is only the second time it's been attempted in the United States.

(voice-over): What's called exit to ECMO was first tried in Philadelphia, but it did not go this well. Still, the road ahead for Tulane's baby boy will be a rocky one. He's in ICU and needs a series of heart surgeries. According to doctors, his chances of survival are 50/50.

ROSS-ASCUITTO: It could be better than that or it could be worse.

MORENO: But for now, doctors are overwhelmed that he has come so far.

Helena Moreno, WDSU, News Channel 6.

(END VIDEOTAPE)

COSTELLO: And that baby boy is now 13 days old, and, as you heard, he's still fighting.

Coming up in the next hour of DAYBREAK, bomb-sniffing dogs, soldiers and the Coast Guard, all this for today's inauguration. And fake documents, just how easy is it to obtain a false driver's license? You won't believe it. We'll look at a potentially dangerous loophole straight ahead on DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Nearly half the $40 million price tag for the inaugural is being picked up by corporate donors. Some are shelling out up to $250,000 for the festivities, among them Ford, Pfizer, and, even our own parent company, TimeWarner.

So we've been asking you this question this morning, inauguration 2005: corporate indulgence or symbol of Democracy?

Ali Velshi and Chad Myers along to help me now in reading the many responses that we've gathered in this morning.

VELSHI: Good ones -- Chad.

MYERS: Yes, go right ahead -- Ali.

VELSHI: I've got one from Phillip (ph) in Halifax who says, I personally wouldn't call the huge tab on the president's inauguration celebrations corporate indulgence so long as donations are unconditional and do not hold government to ransom. True, corporate donors have their vested interests, but there's nothing wrong or unethical in an obliging sponsor giving to a willing recipient.

MYERS: Matt (ph) in Colorado maybe agree a little bit, but he says the inauguration ceremony is just for the rich and the flashy. Why can't a bartender or a janitor meet the president? We all want to meet him. How come I have to have $10,000 just to have a plate of food with him?

COSTELLO: Because this is America.

MYERS: Yes.

VELSHI: Alex (ph) in Fresno says this is purely for big business. The money that's being spent on this inauguration could help the tsunami survivors and the people in this country and in Iraq.

COSTELLO: OK, and a last one from Jackie (ph). The inauguration is a symbol of Democracy, and you would not be asking this question if it was a Democrat taking the oath of office. The media brouhaha over the inaugural events is just another form of your Bush bashing.

The next hour of DAYBREAK begins right now.

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Aired January 20, 2005 - 05:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Good morning to you, welcome to the second-half hour of DAYBREAK. From the TimeWarner Center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."

George W. Bush takes the oath of office at noon today for his second term as president of the United States. His inaugural address will emphasize his vision of spreading freedom and democracy worldwide. His speech will be followed by the traditional parade and a series of inaugural balls.

The FBI has alerted Boston area police to watch for four Chinese nationals described as possible terror suspects. The Massachusetts governor is calling a tip about an unspecified threat unsubstantiated and uncorroborated.

The U.N. General Assembly says relief for tsunami victims must extend beyond emergency aid to rebuilding homes and lives. The resolution, co-sponsored by 90 nations, also calls for a tsunami early warning system in the Indian Ocean.

And Republicans in Washington State are still fuming over losing the race for governor by 129 votes. They will try to convince a judge to set aside the election of the Democratic Governor Christine Gregoire. Democrats will ask the judge to dismiss the GOP motion.

To the Forecast Center now and, Chad, good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol, temperatures nice across a lot of the country. How are you doing this morning?

COSTELLO: I'm cold.

MYERS: Good, well, it's winter.

COSTELLO: Just a little.

MYERS: You asked to go to New York.

COSTELLO: I know.

MYERS: Should have asked to go to Miami.

(WEATHER REPORT)

MYERS: Carol, back to you.

COSTELLO: Thank you, Chad.

President Bush enters his second term facing strange relationships with traditional allies around the world. Want to take a closer look at the challenges ahead for the president and the impact a second Bush term would have worldwide.

Britain has been the president's staunchest ally in the war in Iraq. How will Britain and close friend Prime Minister Tony Blair shape a second Bush term?

Our European political editor Robin Oakley joins us live from London with more.

Good morning -- Robin.

ROBIN OAKLEY, CNN EUROPEAN POLITICAL EDITOR: Good morning, Carol.

Not very good news for George Bush's advisers, really. In some poll evidence coming out in Britain today, British Broadcasting Corporation, a poll of 22,000 people across 21 countries worldwide, and the finding of that poll, 58 percent of those polled believe that George Bush will be a negative effect on peace and security in the world over the next four years. Only 26 percent saying that he will be a positive effect.

Here in Britain, 64 percent saying that they don't think America will be a positive force in the world over the next four years. Better figures perhaps than France, 75 percent, Germany 77 percent, but that's a pretty negative rating in a country that has been George Bush's strongest ally over Iraq.

As for Tony Blair, well of course he's got the difficulty now, George Bush has fought and won his election. Tony Blair has got to fight an election this year tied to George Bush's coattails. Many British voters see him as George Bush's poodle. Huge demonstrations on the streets in Britain against the Iraq War, of course, when it was called.

And so not surprisingly, Tony Blair today is saying that he thinks George Bush, he's had an interview with "The Guardian" newspaper, he thinks George Bush will be more consensual over the next four years, that he will place more importance on multilateral institutions. Certainly Tony Blair badly needs him to do something on the Middle East -- Carol.

COSTELLO: Robin Oakley, live in London this morning, thank you.

International fence mending might be the toughest for President Bush in France, though, where fierce differences over the war in Iraq have caused, well, a lot of friction.

CNN's Jim Bittermann is in Paris.

Jim, what will it take to fix this relationship?

JIM BITTERMANN, CNN CORRESPONDENT: Well a lot of people here are asking that question at this very moment, Carol. As a matter of fact, there's a major conference on this morning, on the inauguration day, involving government ministers and parliamentary leaders and experts who are all debating, and will debate all day today, the question of what kind of transatlantic relation can we expect from the second Bush administration? So it's clearly something the French are quite concerned about from President Jacques Chirac on down.

There has been something of a charm offensive launched here over the last few weeks, people really want to try to develop what the French Foreign Minister called in an interview yesterday a new relationship with the United States. He gave an exclusive interview to CNN clearly wanting to send a message on inauguration day that the French are willing to start something new, to try to reach across the Atlantic.

However, he did sort of point to some limits in the interview. He said that there's no such thing as a one-way compromise, clearly expecting the United States to reach out as well. And he said a new relationship means that we respect each other and we like each other as allies. We are allies. Alliance is not submission he said. So there are clearly some limits to what the French are thinking, but they are making an effort, trying to mend fences over the next four years -- Carol.

COSTELLO: Jim Bittermann, live in France this morning, thank you.

Nowhere by President Bush have a greater chance to influence the world though than in the Middle East. A new coalition in Israel, along with a new Palestinian leader, presents the president with a new opportunity to be a peacemaker.

But as CNN's John Vause reports, actions will have to speak louder than words.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT (voice-over): Don't talk to Abu Mahmoud (ph) about a second Bush administration. He sells coffee in Ramallah's busy marketplace. The first four years, he says, were bad enough.

ABU MAHMOUD, COFFEE SELLER (through translator): Since he became involved in politics, there has only been disaster in the world. If you are talking about the U.S. today, its earthquakes and wars.

VAUSE: There is not a lot of hope among Palestinians that four more years of George Bush will do anything for a just and lasting peace with Israel. Most on these streets, like fruit seller Abu Jamar (ph), believe the U.S. is biased against them in favor of Israel.

ABU JAMAR, FRUIT SELLER (through translator): He has never put pressure on Israel to bring peace to the Middle East. VAUSE: With a new democratically elected leader, many Palestinian legislators say all they want is for the U.S. president to be involved and fair.

HANAN ASHRAWI, PALESTINIAN LEGISLATOR: An even-handed approach would be close to Americans. But we live in a land in which miracles have been known to happen.

VAUSE: Another marketplace, but this one in west Jerusalem, and in the past, a popular target for Palestinian suicide bombers. Like most Israelis, Shalom Caleba (ph), a government worker, believes George Bush has been a good friend to Israel.

SHALOM CALEBA, GOVERNMENT WORKER (through translator): I do believe he's capable of bringing peace. He has proved already he can act and act for the best.

VAUSE: As for the Israeli government, relations just couldn't be any better.

RA'ANAN GISSIN, ADVISER TO ISRAELI PRIME MINISTER: I don't think there was ever a time where we had stronger strategic cooperation, where we had warmer relations and when we had the kind of support and backing from the U.S. administration.

VAUSE: For a U.S. president in a second term, solving the Israeli-Palestinian conflict would mean a gilded-edge legacy.

(on camera): Both Presidents Reagan and Clinton tried and failed, so will anything be different this time? Well, for one thing, George W. Bush has an Israeli leader who trusts him, and for another, no Yasser Arafat to have to deal with.

John Vause, CNN, Jerusalem.

(END VIDEOTAPE)

COSTELLO: And stay with CNN throughout the day for live coverage of the nation's 55th inauguration. "GEORGE W. BUSH: THE ROAD AHEAD" all day right here on CNN.

So who is paying for all the fun in Washington this week? Stay with us to find out because we are naming names.

And another inaugural quiz question for you this morning, who was the first and only president to be sworn in by a woman? Do you know the answer? We'll have the answer for you just ahead.

(COMMERCIAL BREAK)

COSTELLO: Are you up and thinking this morning? Some inauguration day history for you. Here's the question: who was the first and only president to be sworn in by a woman? Look at the answer, Lyndon Johnson. He was sworn in by Federal Judge Sarah T. Hughes in 1963 after President Kennedy's assassination. The tough one, wasn't it? Do you ever wonder where the money is coming from to pay for the inauguration? Much of it is coming from private and corporate donors. For a mere $250,000 bucks, you can get tickets to the inaugural events, plus lunch with the president himself. But is it legal? You might be surprised.

CNN's Judy Woodruff takes a look.

(BEGIN VIDEOTAPE)

JUDY WOODRUFF, CNN CORRESPONDENT (voice-over): Who's paying for this and this and this? No, it's not you, the taxpayer, unless, of course, you want it to be.

DAN BARTLETT, WHITE HOUSE COUNSELOR: We're a nation at war. But we do believe it's important that through privately raised money that we ought to go forward with the inaugural festivities.

WOODRUFF: The fact is nearly half of the inaugural budget is made up of money from big business, huge companies and Wall Street rainmakers looking for an in with the administration. Under the campaign finance laws, these corporations are prohibited from giving directly to candidates, but there is no legal cap on the amount they can pump into the inaugural fund. And those who pony up likely expect a lot of bang for their bucks.

None of this is new. Corporations have funneled money into the inaugurations of past presidents, as well.

GEORGE HERBERT WALKER BUSH, FMR. PRESIDENT OF THE UNITED STATES: And I will faithfully execute the office of president...

WOODRUFF: But this is the first time the law requires the inaugural committee to disclose its list of donors.

THOMAS EDSALL, "WASHINGTON POST": It is an economic decision they're making. They're saying that it is worth the $250,000, $500,000, whatever, to do this, that the benefits flowing to their company or their trade association are well worth that investment.

WOODRUFF: So, let's follow the money. On its Web site, the inaugural committee lists 200 donors, more than half are corporations or firms. Among those who've given $250,000, hotel giant Marriott International, communications titan AT&T, pharmaceutical goliath Pfizer, and TimeWarner, the parent company of CNN.

EDSALL: There are a whole group of network of donors, all of which, or almost all of which have various interests with government that they pursue and find contributing to be a very beneficial part of the process.

WOODRUFF: And we're just talking about the official events here. All this week, lobbyists and corporations are wining and dining the powerful at a slew of private parties across Washington. And for shindigs like these, reporting requirements vary, making that money trail a tough one to follow. Judy Woodruff, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: Ali Velshi is here to talk more about this, because you're going to have a more extended story and you're going to name names.

ALI VELSHI, CNN DAYBREAK CONTRIBUTOR: Yes, I'm going to name names. In fairness, those names are available on a Web site put out by the inaugural committee. And you can draw a pretty clear link between the companies that are spending the kind of money that they can spend to contribute to the inaugural and the things that they might get in terms of access and recognition, including the fact that we will talk about them extensively and remind the powerbrokers in Washington.

COSTELLO: Well you talk about access, I know there was a party thrown by General Motors yesterday. The Transportation Secretary Norman Mineta attended.

VELSHI: Yes.

COSTELLO: As he was coming out, reporters put a microphone in his face. And he says hey, it's a party.

VELSHI: And this is the line that's very interesting, because there are some place in the world where you might say isn't that odd? But this is what it is it's a big party, and companies are saying things. We got comment from a number of companies. Home Depot, a big donor, says they're proud to join with a number of our nation's leading companies to bring this important event in our democratic process to the American people. And just comments like that.

COSTELLO: Well that is so disingenuous. Why don't they just come out and tell the truth? We're there to...

VELSHI: Yes, we're buying tickets, access, whatever it is that we're buying. And you know I can sleep at night knowing that that's happening for whatever reason. They're getting access and they'll remind these people when they need a meeting with them that we supported when.

COSTELLO: Well in case you missed it, viewers, our DAYBREAK e- mail "Question of the Day" is about those donations. Is the inauguration about corporate indulgence or is it a symbol of Democracy? We'll read some of your responses in just a few minutes. DAYBREAK@CNN.com if you want to still weigh in.

Your news, money, weather and sports. It's 5:47 Eastern. Here's what's all new this morning.

Full day of festivities in Washington, President Bush and Vice President Dick Cheney will be sworn in for their second term. The inauguration will be followed by the traditional parade and a series of inaugural balls. Some Democratic senators want to delay the confirmation of Condoleezza Rice as Secretary of State, at least until next week. Senate Minority Leader Harry Reid says those senators want to discuss the Rice nomination in floor debate.

In money news, the 6,400 pilots of bankrupt United Airlines will be taking a pay cut, a 12 percent pay cut, that is if they approve a proposed concession package. Voting will run through the end of January.

And in culture, say goodbye to Raymond and his family. After nine years, the sitcom "Everybody Loves Raymond" is calling it quits. The last taping is Friday. The sitcom ends its run on May 16.

And in sports, Chad, we're talking hockey.

MYERS: Right.

COSTELLO: National Hockey League officials and representatives of the Players Union get together today for a second round of talks. They're trying to save the season, half of which has already been missed. I mean would you really want to watch the rest of the season even if they went back on the ice?

MYERS: No, I think -- actually I think fans will boycott the rest of the season, I really...

COSTELLO: I think they should.

MYERS: ... even if they go back on. I think fans are that upset. Well, at least I am.

(WEATHER REPORT)

COSTELLO: Chad, I thought you would be interested in the menu, because I know that you are gourmand.

MYERS: Well, I'm an eater. I don't know what gourmand means, but.

COSTELLO: Yes, you are so funny.

MYERS: Yes.

COSTELLO: You do, too.

We want to talk about how the president will work up an appetite during the swearing in and inaugural address so afterward he, and Vice President Cheney and their wives, will dine with dignitaries and members of Congress on Capitol Hill.

MYERS: Right.

COSTELLO: So here's the menu. Are you ready?

MYERS: I'm ready, except for the steamed lemon pudding. COSTELLO: You don't think that sounds good?

MYERS: No.

COSTELLO: Scalloped crab sounds good.

MYERS: That's OK, yes.

COSTELLO: How about poached lobster?

MYERS: Sure.

COSTELLO: Roasted Missouri quail.

MYERS: See all of this stuff is from the U.S. it seems.

COSTELLO: Very American food. Chestnuts.

MYERS: Very -- yes. Roasting on an open fire.

COSTELLO: Brined root vegetables. What are brined root vegetables?

MYERS: Root vegetables like a potato.

COSTELLO: Carrot.

MYERS: A root, I guess that's a tuber.

COSTELLO: And it's salted, oh no.

MYERS: I'm not really up on my vegetables, Carol, as you know.

COSTELLO: OK, so you're not a gourmand, I was completely wrong about that, you're right. Apple wild cherry compote.

MYERS: That sounds good.

COSTELLO: That does sound good. The steamed lemon pudding is actually like cheesecake. So it's sort of like lemon cheesecake, it just sounds bad when you call it steamed lemon pudding.

MYERS: Don't put lemon in my cheesecake.

COSTELLO: We won't.

MYERS: Just butter.

COSTELLO: Just butter and lots of it.

MYERS: Correct.

COSTELLO: We're going to take a short break. We'll be back with much more on DAYBREAK.

(COMMERCIAL BREAK) COSTELLO: So far so good, a baby boy is in stable condition at Tulane Hospital for Children in New Orleans. In a rare and risky procedure, the infant was hooked up to a heart-lung machine before he was born.

Covering this story, Helena Moreno of our New Orleans affiliate WDSU.

(BEGIN VIDEOTAPE)

HELENA MORENO, WDSU-TV REPORTER (voice-over): He wasn't expected to survive, but here he is, now more than a week old, due to a breakthrough medical procedure.

DR. NANCY ROSS-ASCUITTO, PEDIATRIC CARDIOLOGIST: We decided to try it. We knew what the alternative was.

MORENO: Doctors determined that multiple heart defects made it impossible for the baby to survive long enough to put him on a bypass machine and then correct problems. So doctors attempted to attach the bypass machine, called ECMO, before the baby was actually born, only partially delivered by caesarean to his shoulders.

DR. WILLIAM GILL, NEONATOLOGIST: With the umbilical cord intact, attached to the placenta and therefore the mother was still supplying oxygen, carbon dioxide and nutrients.

MORENO: Once the baby was hooked up to ECMO, the umbilical cord was clamped and that's when he was officially born.

(on camera): Doctors at Tulane Hospital for Children say what they've been able to successfully perform is a very risky procedure. In fact, they say, this is only the second time it's been attempted in the United States.

(voice-over): What's called exit to ECMO was first tried in Philadelphia, but it did not go this well. Still, the road ahead for Tulane's baby boy will be a rocky one. He's in ICU and needs a series of heart surgeries. According to doctors, his chances of survival are 50/50.

ROSS-ASCUITTO: It could be better than that or it could be worse.

MORENO: But for now, doctors are overwhelmed that he has come so far.

Helena Moreno, WDSU, News Channel 6.

(END VIDEOTAPE)

COSTELLO: And that baby boy is now 13 days old, and, as you heard, he's still fighting.

Coming up in the next hour of DAYBREAK, bomb-sniffing dogs, soldiers and the Coast Guard, all this for today's inauguration. And fake documents, just how easy is it to obtain a false driver's license? You won't believe it. We'll look at a potentially dangerous loophole straight ahead on DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Nearly half the $40 million price tag for the inaugural is being picked up by corporate donors. Some are shelling out up to $250,000 for the festivities, among them Ford, Pfizer, and, even our own parent company, TimeWarner.

So we've been asking you this question this morning, inauguration 2005: corporate indulgence or symbol of Democracy?

Ali Velshi and Chad Myers along to help me now in reading the many responses that we've gathered in this morning.

VELSHI: Good ones -- Chad.

MYERS: Yes, go right ahead -- Ali.

VELSHI: I've got one from Phillip (ph) in Halifax who says, I personally wouldn't call the huge tab on the president's inauguration celebrations corporate indulgence so long as donations are unconditional and do not hold government to ransom. True, corporate donors have their vested interests, but there's nothing wrong or unethical in an obliging sponsor giving to a willing recipient.

MYERS: Matt (ph) in Colorado maybe agree a little bit, but he says the inauguration ceremony is just for the rich and the flashy. Why can't a bartender or a janitor meet the president? We all want to meet him. How come I have to have $10,000 just to have a plate of food with him?

COSTELLO: Because this is America.

MYERS: Yes.

VELSHI: Alex (ph) in Fresno says this is purely for big business. The money that's being spent on this inauguration could help the tsunami survivors and the people in this country and in Iraq.

COSTELLO: OK, and a last one from Jackie (ph). The inauguration is a symbol of Democracy, and you would not be asking this question if it was a Democrat taking the oath of office. The media brouhaha over the inaugural events is just another form of your Bush bashing.

The next hour of DAYBREAK begins right now.

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