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CNN Live At Daybreak

Summit Between Arab Leaders and Israel's Prime Minister; Secretary of State Condoleezza Rice's Visit to Europe and Middle East

Aired February 08, 2005 - 05:00   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.


CAROL COSTELLO, CNN ANCHOR: Straight ahead on DAYBREAK, the numbers are in and we will crunch them. Find out what President Bush's budget means for you.
Plus, should he stay or should he go? We'll ask some sensitive questions about the pope.

And making waves -- we'll take you on one woman's record journey.

It is Tuesday, February 8.

This is DAYBREAK.

And good morning to you.

From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.

Now in the news, central Baghdad has been rocked by a deadly explosion this morning. It happened about two and a half hours ago. A hospital official says 18 are dead in what's believed to be a car bombing. It happened at an air field that's being used as a National Guard base.

We're expecting a major announcement from the Mideast this morning. Israeli and Palestinian leaders are meeting right now at a summit in Egypt. They plan to declare a cease-fire to end years of fighting. The summit follows a Mideast visit by Secretary of State Rice. She is in Italy this morning and you're looking at a live picture there of the Vatican. She's going to meet with the country's foreign minister and also with Vatican officials. Rice is on her first trip overseas since being sworn in as the nation's top diplomat.

Back here in the United States, first the Red Sox and now the Patriots. Boston fans have another reason to cheer. They have welcomed home their Super Bowl champion New England Patriots. The players will parade through the streets today.

To the forecast center and Chad -- good morning.

CHAD MYERS, CNN METEOROLOGIST: That thing needs a polishing. Do you see all the fingerprints on that? It doesn't even shine anymore.

COSTELLO: Everybody just wants to touch it.

MYERS: Exactly. COSTELLO: I would.

MYERS: Absolutely. It's like the holy grail of hockey even.

(WEATHER REPORT)

COSTELLO: Our top story this morning, there is a lot at stake for the Middle East. Israeli and Palestinian leaders are holding a summit aimed at ending more than four years of bloody conflict. They're meeting in the Egyptian resort town of Sharm el-Sheikh.

CNN's John Vause is there -- hello, John.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Carol.

If all goes according to plan, in about an hour from now, we should some very significant, possibly even historic statements, being made by the president of the Palestinian Authority, Mahmoud Abbas, and the Israel prime minister, Ariel Sharon.

Mr. Abbas is expected to declare an end to the attacks on Israelis everywhere, essentially an end to the Palestinian intifada or uprising. He's also expected to speak of the need for a speedy return to the U.S.-backed road map peace plan.

It will then be the turn of the Israeli prime minister, Ariel Sharon. He is expected to announce that calm will be replied with calm, quiet with quiet, that Israel will end its military activities in the occupied Palestinian territories. But he will also talk of the importance of deeds, not words, in fighting terrorism.

Now, these statements were finalized last night. Both sides know what the other will say so there should be no surprises here. Now, there will be no formal signing ceremony. In fact, chances are you may not even hear the words cease-fire. Over the last four years, there have been 10 cease-fires, which have all come and gone.

Now, while this ought -- all this means, Carol, is essentially that the Israelis and the Palestinians are now back to where they were before the intifada began in September 2000 -- Carol.

COSTELLO: I was going to ask you, and I know that this is an optimistic day, but can Mahmoud Abbas really guarantee there will be no more terror attacks against Israelis?

VAUSE: Well, he certainly can't give a hundred percent guarantee on that. What he can guarantee is that the Palestinian Authority will do all it can to try and stop those attacks.

He did, however, secure a cease-fire once before, when he served briefly as prime minister in 2003. That lasted for about 53 days.

But it really now is up to the militants and they are saying that they are watching and waiting to see what comes from this summit and they say that they will be watching Israeli actions, as well -- Carol.

COSTELLO: John Vause live in Egypt this morning.

Thank you.

Secretary of State Condoleezza Rice is monitoring those talks. Right now she's in Rome, though.

That's also where we find our State Department correspondent, Andrea Koppel -- good morning, Andrea.

ANDREA KOPPEL, CNN CORRESPONDENT: Bonjourno, Carol.

Secretary of State Rice was among friends here in Italy. It's one of a handful of European countries that has troops in Iraq. And Italian Prime Minister Silvio Berlusconi has offered unwavering support of President Bush despite the fact that he has suffered support here at home in Italy.

Not so in France, the next stop on Condoleezza Rice's whirlwind swing through Europe and the Middle East. Like Germany, France also strongly opposed the U.S. invasion of Iraq and has refused subsequent U.S. requests to send troops.

According to a poll released this week by the German Marshall Fund, a large majority of French citizens still strongly disapprove of the Bush administration's foreign policy.

While she was national security adviser following the start of the Iraq war, Rice was widely quoted as saying the U.S. should forgive France, ignore Germany -- should forgive Russia, rather, ignore Germany and punish France.

Nevertheless, French officials say Rice will receive a warm welcome when she arrives in Paris later this afternoon. Rice, too, for her part, is going to try to reach out and win over some of the Bush administration's toughest critics in her first major foreign policy address since she has become the United States' top diplomat.

A senior State Department official says her speech in Paris will focus on convincing Europe to sign on to a U.S. campaign to spread democracy around the world.

Her arrival in Paris comes on the same day as we heard John just reporting there out of Egypt that the Israelis and Palestinians are holding a summit where they're expected to declare a truce. Working toward Mideast peace is a top priority for France. We've got other positive developments that also coincide with her arrival in France -- recent good elections in Iraq. France has already offered to train 1,500 Iraqi policemen outside of Iraq and the U.S. hopes it will agree to train Iraqi civil servants.

We're told there's still a number of potential flashpoints in U.S.-French relations. Chief among them, prisoners being held at the U.S. based in Guantanamo, climate change, and, of course, Iran -- Carol.

COSTELLO: Andrea Koppel reporting live from Rome. Gracia.

CNN plans live coverage of Rice's international policy address from Paris. That's at 11:00 a.m. Eastern, 8:00 Pacific time.

Back in this country, President Bush new budget blueprint is causing a lot of uneasiness on the Hill and in the heartland. The president's plan would drastically scale back or eliminate scores of programs, ranging from education to agriculture.

CNN's John King runs down the numbers for you.

(BEGIN VIDEO TAPE)

JOHN KING, CNN CORRESPONDENT (voice-over): The president voiced confidence he can rally public support for a budget he calls lean, one that proposes the biggest spending cuts since the Reagan administration.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I fully understand that sometimes it's hard to eliminate a program that sounds good.

KING: The budget calls for $2.57 trillion in federal spending next year and projects a record $427 billion deficit.

Democrats called it reckless.

REP. JOHN SPRATT (D-SC), BANKING COMMITTEE: We do not get out of the deficit. The deficit only gets bigger and deeper.

KING: Winners include homeland security and the Pentagon, which gets a nearly 5 percent boost in spending. Bush campaign promises mean more money for Pell grants and community help clinics. And mandatory programs like Social Security and Medicare will cost more.

Republican leaders labeled the Bush blueprint a good starting point, a polite but hardly enthusiastic reception that underscores the president's challenge cutting programs that are popular in Congress.

Twelve of the 23 major government agencies would get less money because 150 government programs are slated for elimination or significant cuts, including trimming the Medicaid health program for the poor, health benefits for more affluent veterans, more than $8 million from agriculture programs, including a billion dollars from food stamps, federal subsidies for Amtrak and grants for school literacy and anti-drug programs.

BUSH: The important question that needs to be asked for all constituencies is whether or not the programs achieve a certain result.

KING: Democrats say the president's promise to cut the deficit in half is dishonest because his budget doesn't include costs for the Iraq war next year, money to pay for the Social Security changes Mr. Bush purposes and hides the costs of making the big Bush tax cuts permanent.

SEN. KENT CONRAD (D-ND), BUDGET COMMITTEE: None of this adds up. And I mean it isn't even close. None of this adds up and the result is, I think, going to be very, very serious damage to the fiscal strength of our country.

KING: The White House insists the president will keep his deficit promise.

(on camera): But while the budget projects a smaller deficit next year, officials here concede in reality, the red ink could even eclipse this year's record, unless spending on the Iraq war drops dramatically in the coming months, which few here expect.

John King, CNN, the White House.

(END VIDEO TAPE)

COSTELLO: And President Bush will hit the road today to promote that budget plan. He'll travel to the manufacturing center of Detroit today to pitch his spending blueprint. Of course, CNN will carry that live for you at 12:00 Eastern.

No matter what you think about the president's budget, apparently the Iraqi elections have boosted his approval ratings. A CNN/"USA Today"/Gallup poll finds 57 percent of those polled approve of the way he's handling his job. That's up 6 percentage points from just three weeks ago. And it is the largest jump since the capture of Saddam Hussein. Fifty-five percent of adults polled also say the president's policies are moving the nation in the right direction. Forty-two percent say his policies are moving us in the wrong direction. The poll was taken over the weekend and has a sampling error of plus or minus three points.

In the next half hour of DAYBREAK, we'll get more poll results when we talk to the editor-in-chief at Gallup, of course, Frank Newport.

In other news across America this morning, executives from W.R. Grace & Company face charges for threatening the health of 8,000 residents of a Montana town. The Justice Department alleges that seven executives knew the health dangers from their asbestos mine in Libby, Montana, but hid the risks from the public. The deaths of 200 residents are being blamed on asbestos. The company denies any criminal wrongdoing.

A radical environmentalist group may be to blame for an apartment fire in Sutter Creek, California. Investigators say they found several incendiary devices inside the brand new complex. They also say they found graffiti in the area linking the arson to elf or the Earth Liberation Front. Elf has claimed responsibility for fires at other new housing developments in California.

And an animal rights group may be responsible for vandalizing a McDonald's in Torrance, California. The radical Animal Liberation Front, or ALF for short, has targeted McDonald's restaurants in the past. In this instance, police found the words "McMurder Killers" and "Alf" spray painted on the windows that were not smashed.

There's still much more ahead on DAYBREAK, including a look at the scales of justice in Massachusetts. They have swung once again, this time in Cambridge, where a defrocked priest stood accused of molestation. We'll have that at 12 minutes past.

Also, prescription drugs for veterans -- we'll introduce you to a veteran fighting illness, old age and the Bush budget plan. Details at 50 minutes past.

And ahoy, matey. A trip like no other for this English woman. Details and a guest at 43 minutes past.

But first, here's a look at what else is making news this Tuesday morning.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

COSTELLO: Sentencing set for next week in the case of former Catholic priest Paul Shanley. Shanley faces life in prison after a jury found him guilty of repeatedly abusing a young boy in his parish.

CNN Boston bureau chief Dan Lothian has more on the verdict from Cambridge, Massachusetts.

(BEGIN VIDEO TAPE)

DAN LOTHIAN, CNN CORRESPONDENT (voice-over): Defrocked priest Paul Shanley stood in a Cambridge, Massachusetts courtroom and heard the same word, like an echo ringing in his ears.

UNIDENTIFIED MALE: Guilty. Guilty. Guilty. Guilty.

LOTHIAN: Of two counts of child rape and two counts of indecent assault.

MARTHA COAKLEY, DISTRICT ATTORNEY: We never faltered in our belief that this young man had been abused.

LOTHIAN: Shanley's accuser smiled and cried off camera. And while he had no comment, other victims, like "Bill," who was part of the Boston Archdiocese's $85 million landmark abuse settlement but also wants to remain anonymous, called the verdict a victory.

"BILL," ABUSE VICTIM: I'm very emotional. I'm very -- I'm thrilled. I can't tell you. For once, justice prevailed.

LOTHIAN (on camera): Throughout the two week trial, there was often graphic testimony from the prosecution and the victim himself, who talked in great detail about what he says Shanley did to him when he was just six years old.

(voice-over): Like being pulled out of Catechism classes at a suburban Boston parish during the 1980s to be raped repeatedly and groped in a bathroom and church pews.

UNIDENTIFIED MALE: We'd sit toward the front and he'd put his right arm around me. I always sat on his right. And he'd put his right arm around me and he'd start touching me with his left hand.

LOTHIAN: Shanley's accuser came forward three years ago, empowered by the public priest abuse scandal and driven by what was described as repressed memories. The defense tried to discount his claims, calling them false memories.

UNIDENTIFIED MALE: This is a case of massive doubt.

LOTHIAN: To bolster that argument, the defense's one and only witness, a California psychologist who questioned the validity of memories repressed for nearly two decades.

This Shanley supporter also has doubts.

(on camera): So you think he's innocent?

PAUL SHANNON, SHANLEY SUPPORTER: Oh, absolutely. Yes, no, and I just have no doubt about it. Now, obviously everyone on Earth thinks I'm wrong.

LOTHIAN (voice-over): Like "Bill," who says the verdict is liberating for all the victims.

"BILL": We've all been in prison with this fear and the long- term effects of molestation.

LOTHIAN: After the verdict, Shanley's bail was revoked. He'll be sentenced next week and could get up to life in prison.

Dan Lothian, CNN, Cambridge.

(END VIDEO TAPE)

COSTELLO: Your news, money, weather and sports.

It's 5:17 Eastern.

Here's what's all new this morning.

Israel and the Palestinians are expected to announce a cease-fire agreement at today's Mideast summit in Egypt. It will end four years of bloodshed, at least that's the hope, and it'll pave the way for a new era of peace talks.

Secretary of State Condoleezza Rice is in Rome this morning. She'll meet with Italy's foreign minister and the Vatican's number two official. Later today, she'll deliver a major foreign policy address in Paris.

In money news, Coke and Pepsi will each start using Splenda brand sweetener in at least one of their diet drinks. Coke plans to launch a new Diet Coke with Splenda, while Pepsi will formulate its Pepsi One brand to include that popular sweetener.

In culture, the rock band U2 is apologizing to fans for messing up exclusive access to tickets for their upcoming tour. Tickets for the shows were supposed to be available to their Web site subscribers first, but a security code problem ruined that plan.

In sports, after a five year absence, Andre Agassi is returning to the Davis Cup competition. Agassi will join Andy Roddick on the court for the first round matches against Croatia in March. The U.S. has not won the Davis Cup in 10 years. Man, he's in his mid-30s now, isn't he -- Chad.

MYERS: Yes, he's got a hairline like me.

COSTELLO: Did you have really long hair when you were young like him and then all of a sudden you were...

MYERS: No. I never had the mullet. No. Never did that.

COSTELLO: Good. I'm glad.

MYERS: Hey, good morning, everybody.

(WEATHER REPORT)

COSTELLO: Chad, I wanted to talk to you about the cost of a colleague education, because now that you have a child, imagine how much it will cost to send Grant to college.

MYERS: I can't even imagine. He's going to a state school, Carol.

COSTELLO: I'm telling you, if you're going to college or you have a kid who is, you'd better brace yourself. Just applying and choosing a college, you know, this can be extremely expensive.

MYERS: Can you believe it, I paid $29 a credit hour at the University of Nebraska.

COSTELLO: It's hard to imagine it was that cheap.

MYERS: Now you can't buy a book for $29.

COSTELLO: Exactly.

Just for an application fee to a college, $50 to $75 each.

MYERS: Wow!

COSTELLO: So if you apply to like six colleges, that's $300.

MYERS: Yes.

COSTELLO: Just to apply.

MYERS: Right. COSTELLO: The SAT Reasoning Test, which you must take, $41.50 just to take it. And many students take it twice to improve their scores, so add that up and that's $83.

MYERS: Oh, that's just a start.

COSTELLO: Isn't that insane? ACT test with the writing option test, because now, you know, there are essay tests included in the SAT and ACT.

MYERS: Right.

COSTELLO: Just to take the ACT test with the writing option, $42.

MYERS: I don't even -- I didn't even know what it was when I went to school. But it wasn't important at that time because you had to have it. You know, it's like you have to have water, so whatever they charge you, you have to, you know, so.

COSTELLO: That's exactly right.

MYERS: I guess.

COSTELLO: Well, actually, that brings us to our DAYBREAK E-Mail Question of the Morning. Is the cost of applying to college too high? I mean do you believe that you'll be able to send your kid to college if you're not wealthy, because, you know, you could pay $30,000 a year to send your kid to college.

MYERS: Oh, at least. At least now. And that's not even going to a private school or, heaven forbid, even try to do something Ivy League. Holy cow.

COSTELLO: You'd better get scholarships for that.

MYERS: Absolutely.

COSTELLO: Daybreak@cnn.com. That's daybreak@cnn.com.

Please, send us your responses this morning.

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: I feel -- hey, you have a new little position there in the weather office.

MYERS: We have a little set here, yes. They moved some computers around so it looks like I'm actually sitting in a little set.

COSTELLO: Wow, and you're lit and everything.

MYERS: Yes. I have four lights. COSTELLO: That's insane.

MYERS: But I don't have a makeup lady, though. I mean I'm still not...

COSTELLO: Well, you'd have to take a pay cut for that.

Time to kick off your morning with some "Late Night Laughs."

Did you watch the Super Bowl half-time show? No, Chad did not.

MYERS: Jay Leno did.

COSTELLO: Yes, and a good thing. What he saw did not turn him on.

Listen.

(BEGIN VIDEO CLIP FROM "THE TONIGHT SHOW WITH JAY LENO," COURTESY NBC)

JAY LENO, HOST: But, you know, they took all the sex out of the Super Bowl this year, do you know what I'm saying? Do you see how disappointed some of the fans were. Show that one guy. Show that one guy. Yes, look. Ah, man, look at that (UNINTELLIGIBLE).

This is the Patriots' third Super Bowl in four years. That's pretty good. Tsar. Do you realize Tom Brady, Tom Brady now has more rings than Kobe's wife, you know that?

(END VIDEO CLIP)

MYERS: Oooh!

COSTELLO: I like that. I like that. He wasn't the only one joking about the Super Bowl half-time show, either. Of course, this year's half-time show didn't feature any wardrobe malfunctions.

But as David Letterman tells us, that's not necessarily a good thing.

(BEGIN VIDEO CLIP FROM "THE LATE SHOW WITH DAVID LETTERMAN, COURTESY CBS/WORLDWIDE PANTS)

DAVID LETTERMAN, HOST: And the Super Bowl half-time show, did you enjoy the half-time show? It was clean, it was wholesome, it was family friendly. That's right, it sucked.

(END VIDEO CLIP)

COSTELLO: I have to agree. I mean I love Paul McCartney, but he's like 62.

MYERS: Well, that's the average age of the viewer, Carol, wasn't it?

COSTELLO: During the Super Bowl?

MYERS: Well, hey.

COSTELLO: I don't think so.

MYERS: At least at that point all the other guys were watching MTV. You know, we never heard anything about this Lingerie Bowl. Remember, that was such a big deal last year and it was on...

COSTELLO: It was on again this year.

MYERS: Well, I hear it was, but it was just like no publicity at all for it.

COSTELLO: You know, I'm really bummed out about that myself.

MYERS: Hey. It's half-time, you've got to get your jollies at half-time somehow. I mean if you didn't like Paul McCartney, you could find other things.

COSTELLO: True. So true.

Here's what's all new in the next half hour of DAYBREAK.

There is new talk the pope might resign. We take you live to Rome for details on that.

Plus, around the world in 71 days -- one woman's extraordinary journey ends today.

And a reminder, our E-mail Question of the Day -- is the cost of applying to college too high? Do you think you will be able to afford to send your kids to college? Send your thoughts to us. Daybreak@cnn.com. That's daybreak@cnn.com.

(COMMERCIAL BREAK)

COSTELLO: And good morning to you.

Welcome to the second half hour of DAYBREAK.

From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.

Now in the news, President Bush takes his budget on the road today. He's pushing his nearly $2.6 trillion package at the Detroit Economic Club today.

High level Israeli-Palestinian talks have been going on at Egypt's Sharm el-Sheikh resort at the Red Sea. We're expecting the two sides to declare a cease-fire to the violence dating back to September of 2000.

Secretary of State Condoleezza Rice is in Rome meeting with government officials and a representative of the Vatican. Coming up in five and a half hours, at 11:00 Eastern, she delivers a major international policy address in Paris.

It's Fat Tuesday, don't you know? The day for Mardi Gras in The Big Easy. Rain has been falling in New Orleans, but who cares? A lot of people will be clamoring for beads as they yell, "Hey, mister, throw me something!" And then you know what happens after that, Chad.

MYERS: That's not what they yell.

COSTELLO: I guess it happens before that.

MYERS: Not at all, Carol. Obviously you've never been there.

COSTELLO: I know. Well, it's a PG -- well, we could be a PG rated show at 5:00 a.m.

MYERS: Yes, let's not even try it.

COSTELLO: OK.

MYERS: OK.

COSTELLO: All right.

MYERS: The bosses are watching.

(WEATHER REPORT)

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Aired February 8, 2005 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Straight ahead on DAYBREAK, the numbers are in and we will crunch them. Find out what President Bush's budget means for you.
Plus, should he stay or should he go? We'll ask some sensitive questions about the pope.

And making waves -- we'll take you on one woman's record journey.

It is Tuesday, February 8.

This is DAYBREAK.

And good morning to you.

From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.

Now in the news, central Baghdad has been rocked by a deadly explosion this morning. It happened about two and a half hours ago. A hospital official says 18 are dead in what's believed to be a car bombing. It happened at an air field that's being used as a National Guard base.

We're expecting a major announcement from the Mideast this morning. Israeli and Palestinian leaders are meeting right now at a summit in Egypt. They plan to declare a cease-fire to end years of fighting. The summit follows a Mideast visit by Secretary of State Rice. She is in Italy this morning and you're looking at a live picture there of the Vatican. She's going to meet with the country's foreign minister and also with Vatican officials. Rice is on her first trip overseas since being sworn in as the nation's top diplomat.

Back here in the United States, first the Red Sox and now the Patriots. Boston fans have another reason to cheer. They have welcomed home their Super Bowl champion New England Patriots. The players will parade through the streets today.

To the forecast center and Chad -- good morning.

CHAD MYERS, CNN METEOROLOGIST: That thing needs a polishing. Do you see all the fingerprints on that? It doesn't even shine anymore.

COSTELLO: Everybody just wants to touch it.

MYERS: Exactly. COSTELLO: I would.

MYERS: Absolutely. It's like the holy grail of hockey even.

(WEATHER REPORT)

COSTELLO: Our top story this morning, there is a lot at stake for the Middle East. Israeli and Palestinian leaders are holding a summit aimed at ending more than four years of bloody conflict. They're meeting in the Egyptian resort town of Sharm el-Sheikh.

CNN's John Vause is there -- hello, John.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Carol.

If all goes according to plan, in about an hour from now, we should some very significant, possibly even historic statements, being made by the president of the Palestinian Authority, Mahmoud Abbas, and the Israel prime minister, Ariel Sharon.

Mr. Abbas is expected to declare an end to the attacks on Israelis everywhere, essentially an end to the Palestinian intifada or uprising. He's also expected to speak of the need for a speedy return to the U.S.-backed road map peace plan.

It will then be the turn of the Israeli prime minister, Ariel Sharon. He is expected to announce that calm will be replied with calm, quiet with quiet, that Israel will end its military activities in the occupied Palestinian territories. But he will also talk of the importance of deeds, not words, in fighting terrorism.

Now, these statements were finalized last night. Both sides know what the other will say so there should be no surprises here. Now, there will be no formal signing ceremony. In fact, chances are you may not even hear the words cease-fire. Over the last four years, there have been 10 cease-fires, which have all come and gone.

Now, while this ought -- all this means, Carol, is essentially that the Israelis and the Palestinians are now back to where they were before the intifada began in September 2000 -- Carol.

COSTELLO: I was going to ask you, and I know that this is an optimistic day, but can Mahmoud Abbas really guarantee there will be no more terror attacks against Israelis?

VAUSE: Well, he certainly can't give a hundred percent guarantee on that. What he can guarantee is that the Palestinian Authority will do all it can to try and stop those attacks.

He did, however, secure a cease-fire once before, when he served briefly as prime minister in 2003. That lasted for about 53 days.

But it really now is up to the militants and they are saying that they are watching and waiting to see what comes from this summit and they say that they will be watching Israeli actions, as well -- Carol.

COSTELLO: John Vause live in Egypt this morning.

Thank you.

Secretary of State Condoleezza Rice is monitoring those talks. Right now she's in Rome, though.

That's also where we find our State Department correspondent, Andrea Koppel -- good morning, Andrea.

ANDREA KOPPEL, CNN CORRESPONDENT: Bonjourno, Carol.

Secretary of State Rice was among friends here in Italy. It's one of a handful of European countries that has troops in Iraq. And Italian Prime Minister Silvio Berlusconi has offered unwavering support of President Bush despite the fact that he has suffered support here at home in Italy.

Not so in France, the next stop on Condoleezza Rice's whirlwind swing through Europe and the Middle East. Like Germany, France also strongly opposed the U.S. invasion of Iraq and has refused subsequent U.S. requests to send troops.

According to a poll released this week by the German Marshall Fund, a large majority of French citizens still strongly disapprove of the Bush administration's foreign policy.

While she was national security adviser following the start of the Iraq war, Rice was widely quoted as saying the U.S. should forgive France, ignore Germany -- should forgive Russia, rather, ignore Germany and punish France.

Nevertheless, French officials say Rice will receive a warm welcome when she arrives in Paris later this afternoon. Rice, too, for her part, is going to try to reach out and win over some of the Bush administration's toughest critics in her first major foreign policy address since she has become the United States' top diplomat.

A senior State Department official says her speech in Paris will focus on convincing Europe to sign on to a U.S. campaign to spread democracy around the world.

Her arrival in Paris comes on the same day as we heard John just reporting there out of Egypt that the Israelis and Palestinians are holding a summit where they're expected to declare a truce. Working toward Mideast peace is a top priority for France. We've got other positive developments that also coincide with her arrival in France -- recent good elections in Iraq. France has already offered to train 1,500 Iraqi policemen outside of Iraq and the U.S. hopes it will agree to train Iraqi civil servants.

We're told there's still a number of potential flashpoints in U.S.-French relations. Chief among them, prisoners being held at the U.S. based in Guantanamo, climate change, and, of course, Iran -- Carol.

COSTELLO: Andrea Koppel reporting live from Rome. Gracia.

CNN plans live coverage of Rice's international policy address from Paris. That's at 11:00 a.m. Eastern, 8:00 Pacific time.

Back in this country, President Bush new budget blueprint is causing a lot of uneasiness on the Hill and in the heartland. The president's plan would drastically scale back or eliminate scores of programs, ranging from education to agriculture.

CNN's John King runs down the numbers for you.

(BEGIN VIDEO TAPE)

JOHN KING, CNN CORRESPONDENT (voice-over): The president voiced confidence he can rally public support for a budget he calls lean, one that proposes the biggest spending cuts since the Reagan administration.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I fully understand that sometimes it's hard to eliminate a program that sounds good.

KING: The budget calls for $2.57 trillion in federal spending next year and projects a record $427 billion deficit.

Democrats called it reckless.

REP. JOHN SPRATT (D-SC), BANKING COMMITTEE: We do not get out of the deficit. The deficit only gets bigger and deeper.

KING: Winners include homeland security and the Pentagon, which gets a nearly 5 percent boost in spending. Bush campaign promises mean more money for Pell grants and community help clinics. And mandatory programs like Social Security and Medicare will cost more.

Republican leaders labeled the Bush blueprint a good starting point, a polite but hardly enthusiastic reception that underscores the president's challenge cutting programs that are popular in Congress.

Twelve of the 23 major government agencies would get less money because 150 government programs are slated for elimination or significant cuts, including trimming the Medicaid health program for the poor, health benefits for more affluent veterans, more than $8 million from agriculture programs, including a billion dollars from food stamps, federal subsidies for Amtrak and grants for school literacy and anti-drug programs.

BUSH: The important question that needs to be asked for all constituencies is whether or not the programs achieve a certain result.

KING: Democrats say the president's promise to cut the deficit in half is dishonest because his budget doesn't include costs for the Iraq war next year, money to pay for the Social Security changes Mr. Bush purposes and hides the costs of making the big Bush tax cuts permanent.

SEN. KENT CONRAD (D-ND), BUDGET COMMITTEE: None of this adds up. And I mean it isn't even close. None of this adds up and the result is, I think, going to be very, very serious damage to the fiscal strength of our country.

KING: The White House insists the president will keep his deficit promise.

(on camera): But while the budget projects a smaller deficit next year, officials here concede in reality, the red ink could even eclipse this year's record, unless spending on the Iraq war drops dramatically in the coming months, which few here expect.

John King, CNN, the White House.

(END VIDEO TAPE)

COSTELLO: And President Bush will hit the road today to promote that budget plan. He'll travel to the manufacturing center of Detroit today to pitch his spending blueprint. Of course, CNN will carry that live for you at 12:00 Eastern.

No matter what you think about the president's budget, apparently the Iraqi elections have boosted his approval ratings. A CNN/"USA Today"/Gallup poll finds 57 percent of those polled approve of the way he's handling his job. That's up 6 percentage points from just three weeks ago. And it is the largest jump since the capture of Saddam Hussein. Fifty-five percent of adults polled also say the president's policies are moving the nation in the right direction. Forty-two percent say his policies are moving us in the wrong direction. The poll was taken over the weekend and has a sampling error of plus or minus three points.

In the next half hour of DAYBREAK, we'll get more poll results when we talk to the editor-in-chief at Gallup, of course, Frank Newport.

In other news across America this morning, executives from W.R. Grace & Company face charges for threatening the health of 8,000 residents of a Montana town. The Justice Department alleges that seven executives knew the health dangers from their asbestos mine in Libby, Montana, but hid the risks from the public. The deaths of 200 residents are being blamed on asbestos. The company denies any criminal wrongdoing.

A radical environmentalist group may be to blame for an apartment fire in Sutter Creek, California. Investigators say they found several incendiary devices inside the brand new complex. They also say they found graffiti in the area linking the arson to elf or the Earth Liberation Front. Elf has claimed responsibility for fires at other new housing developments in California.

And an animal rights group may be responsible for vandalizing a McDonald's in Torrance, California. The radical Animal Liberation Front, or ALF for short, has targeted McDonald's restaurants in the past. In this instance, police found the words "McMurder Killers" and "Alf" spray painted on the windows that were not smashed.

There's still much more ahead on DAYBREAK, including a look at the scales of justice in Massachusetts. They have swung once again, this time in Cambridge, where a defrocked priest stood accused of molestation. We'll have that at 12 minutes past.

Also, prescription drugs for veterans -- we'll introduce you to a veteran fighting illness, old age and the Bush budget plan. Details at 50 minutes past.

And ahoy, matey. A trip like no other for this English woman. Details and a guest at 43 minutes past.

But first, here's a look at what else is making news this Tuesday morning.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

COSTELLO: Sentencing set for next week in the case of former Catholic priest Paul Shanley. Shanley faces life in prison after a jury found him guilty of repeatedly abusing a young boy in his parish.

CNN Boston bureau chief Dan Lothian has more on the verdict from Cambridge, Massachusetts.

(BEGIN VIDEO TAPE)

DAN LOTHIAN, CNN CORRESPONDENT (voice-over): Defrocked priest Paul Shanley stood in a Cambridge, Massachusetts courtroom and heard the same word, like an echo ringing in his ears.

UNIDENTIFIED MALE: Guilty. Guilty. Guilty. Guilty.

LOTHIAN: Of two counts of child rape and two counts of indecent assault.

MARTHA COAKLEY, DISTRICT ATTORNEY: We never faltered in our belief that this young man had been abused.

LOTHIAN: Shanley's accuser smiled and cried off camera. And while he had no comment, other victims, like "Bill," who was part of the Boston Archdiocese's $85 million landmark abuse settlement but also wants to remain anonymous, called the verdict a victory.

"BILL," ABUSE VICTIM: I'm very emotional. I'm very -- I'm thrilled. I can't tell you. For once, justice prevailed.

LOTHIAN (on camera): Throughout the two week trial, there was often graphic testimony from the prosecution and the victim himself, who talked in great detail about what he says Shanley did to him when he was just six years old.

(voice-over): Like being pulled out of Catechism classes at a suburban Boston parish during the 1980s to be raped repeatedly and groped in a bathroom and church pews.

UNIDENTIFIED MALE: We'd sit toward the front and he'd put his right arm around me. I always sat on his right. And he'd put his right arm around me and he'd start touching me with his left hand.

LOTHIAN: Shanley's accuser came forward three years ago, empowered by the public priest abuse scandal and driven by what was described as repressed memories. The defense tried to discount his claims, calling them false memories.

UNIDENTIFIED MALE: This is a case of massive doubt.

LOTHIAN: To bolster that argument, the defense's one and only witness, a California psychologist who questioned the validity of memories repressed for nearly two decades.

This Shanley supporter also has doubts.

(on camera): So you think he's innocent?

PAUL SHANNON, SHANLEY SUPPORTER: Oh, absolutely. Yes, no, and I just have no doubt about it. Now, obviously everyone on Earth thinks I'm wrong.

LOTHIAN (voice-over): Like "Bill," who says the verdict is liberating for all the victims.

"BILL": We've all been in prison with this fear and the long- term effects of molestation.

LOTHIAN: After the verdict, Shanley's bail was revoked. He'll be sentenced next week and could get up to life in prison.

Dan Lothian, CNN, Cambridge.

(END VIDEO TAPE)

COSTELLO: Your news, money, weather and sports.

It's 5:17 Eastern.

Here's what's all new this morning.

Israel and the Palestinians are expected to announce a cease-fire agreement at today's Mideast summit in Egypt. It will end four years of bloodshed, at least that's the hope, and it'll pave the way for a new era of peace talks.

Secretary of State Condoleezza Rice is in Rome this morning. She'll meet with Italy's foreign minister and the Vatican's number two official. Later today, she'll deliver a major foreign policy address in Paris.

In money news, Coke and Pepsi will each start using Splenda brand sweetener in at least one of their diet drinks. Coke plans to launch a new Diet Coke with Splenda, while Pepsi will formulate its Pepsi One brand to include that popular sweetener.

In culture, the rock band U2 is apologizing to fans for messing up exclusive access to tickets for their upcoming tour. Tickets for the shows were supposed to be available to their Web site subscribers first, but a security code problem ruined that plan.

In sports, after a five year absence, Andre Agassi is returning to the Davis Cup competition. Agassi will join Andy Roddick on the court for the first round matches against Croatia in March. The U.S. has not won the Davis Cup in 10 years. Man, he's in his mid-30s now, isn't he -- Chad.

MYERS: Yes, he's got a hairline like me.

COSTELLO: Did you have really long hair when you were young like him and then all of a sudden you were...

MYERS: No. I never had the mullet. No. Never did that.

COSTELLO: Good. I'm glad.

MYERS: Hey, good morning, everybody.

(WEATHER REPORT)

COSTELLO: Chad, I wanted to talk to you about the cost of a colleague education, because now that you have a child, imagine how much it will cost to send Grant to college.

MYERS: I can't even imagine. He's going to a state school, Carol.

COSTELLO: I'm telling you, if you're going to college or you have a kid who is, you'd better brace yourself. Just applying and choosing a college, you know, this can be extremely expensive.

MYERS: Can you believe it, I paid $29 a credit hour at the University of Nebraska.

COSTELLO: It's hard to imagine it was that cheap.

MYERS: Now you can't buy a book for $29.

COSTELLO: Exactly.

Just for an application fee to a college, $50 to $75 each.

MYERS: Wow!

COSTELLO: So if you apply to like six colleges, that's $300.

MYERS: Yes.

COSTELLO: Just to apply.

MYERS: Right. COSTELLO: The SAT Reasoning Test, which you must take, $41.50 just to take it. And many students take it twice to improve their scores, so add that up and that's $83.

MYERS: Oh, that's just a start.

COSTELLO: Isn't that insane? ACT test with the writing option test, because now, you know, there are essay tests included in the SAT and ACT.

MYERS: Right.

COSTELLO: Just to take the ACT test with the writing option, $42.

MYERS: I don't even -- I didn't even know what it was when I went to school. But it wasn't important at that time because you had to have it. You know, it's like you have to have water, so whatever they charge you, you have to, you know, so.

COSTELLO: That's exactly right.

MYERS: I guess.

COSTELLO: Well, actually, that brings us to our DAYBREAK E-Mail Question of the Morning. Is the cost of applying to college too high? I mean do you believe that you'll be able to send your kid to college if you're not wealthy, because, you know, you could pay $30,000 a year to send your kid to college.

MYERS: Oh, at least. At least now. And that's not even going to a private school or, heaven forbid, even try to do something Ivy League. Holy cow.

COSTELLO: You'd better get scholarships for that.

MYERS: Absolutely.

COSTELLO: Daybreak@cnn.com. That's daybreak@cnn.com.

Please, send us your responses this morning.

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: I feel -- hey, you have a new little position there in the weather office.

MYERS: We have a little set here, yes. They moved some computers around so it looks like I'm actually sitting in a little set.

COSTELLO: Wow, and you're lit and everything.

MYERS: Yes. I have four lights. COSTELLO: That's insane.

MYERS: But I don't have a makeup lady, though. I mean I'm still not...

COSTELLO: Well, you'd have to take a pay cut for that.

Time to kick off your morning with some "Late Night Laughs."

Did you watch the Super Bowl half-time show? No, Chad did not.

MYERS: Jay Leno did.

COSTELLO: Yes, and a good thing. What he saw did not turn him on.

Listen.

(BEGIN VIDEO CLIP FROM "THE TONIGHT SHOW WITH JAY LENO," COURTESY NBC)

JAY LENO, HOST: But, you know, they took all the sex out of the Super Bowl this year, do you know what I'm saying? Do you see how disappointed some of the fans were. Show that one guy. Show that one guy. Yes, look. Ah, man, look at that (UNINTELLIGIBLE).

This is the Patriots' third Super Bowl in four years. That's pretty good. Tsar. Do you realize Tom Brady, Tom Brady now has more rings than Kobe's wife, you know that?

(END VIDEO CLIP)

MYERS: Oooh!

COSTELLO: I like that. I like that. He wasn't the only one joking about the Super Bowl half-time show, either. Of course, this year's half-time show didn't feature any wardrobe malfunctions.

But as David Letterman tells us, that's not necessarily a good thing.

(BEGIN VIDEO CLIP FROM "THE LATE SHOW WITH DAVID LETTERMAN, COURTESY CBS/WORLDWIDE PANTS)

DAVID LETTERMAN, HOST: And the Super Bowl half-time show, did you enjoy the half-time show? It was clean, it was wholesome, it was family friendly. That's right, it sucked.

(END VIDEO CLIP)

COSTELLO: I have to agree. I mean I love Paul McCartney, but he's like 62.

MYERS: Well, that's the average age of the viewer, Carol, wasn't it?

COSTELLO: During the Super Bowl?

MYERS: Well, hey.

COSTELLO: I don't think so.

MYERS: At least at that point all the other guys were watching MTV. You know, we never heard anything about this Lingerie Bowl. Remember, that was such a big deal last year and it was on...

COSTELLO: It was on again this year.

MYERS: Well, I hear it was, but it was just like no publicity at all for it.

COSTELLO: You know, I'm really bummed out about that myself.

MYERS: Hey. It's half-time, you've got to get your jollies at half-time somehow. I mean if you didn't like Paul McCartney, you could find other things.

COSTELLO: True. So true.

Here's what's all new in the next half hour of DAYBREAK.

There is new talk the pope might resign. We take you live to Rome for details on that.

Plus, around the world in 71 days -- one woman's extraordinary journey ends today.

And a reminder, our E-mail Question of the Day -- is the cost of applying to college too high? Do you think you will be able to afford to send your kids to college? Send your thoughts to us. Daybreak@cnn.com. That's daybreak@cnn.com.

(COMMERCIAL BREAK)

COSTELLO: And good morning to you.

Welcome to the second half hour of DAYBREAK.

From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.

Now in the news, President Bush takes his budget on the road today. He's pushing his nearly $2.6 trillion package at the Detroit Economic Club today.

High level Israeli-Palestinian talks have been going on at Egypt's Sharm el-Sheikh resort at the Red Sea. We're expecting the two sides to declare a cease-fire to the violence dating back to September of 2000.

Secretary of State Condoleezza Rice is in Rome meeting with government officials and a representative of the Vatican. Coming up in five and a half hours, at 11:00 Eastern, she delivers a major international policy address in Paris.

It's Fat Tuesday, don't you know? The day for Mardi Gras in The Big Easy. Rain has been falling in New Orleans, but who cares? A lot of people will be clamoring for beads as they yell, "Hey, mister, throw me something!" And then you know what happens after that, Chad.

MYERS: That's not what they yell.

COSTELLO: I guess it happens before that.

MYERS: Not at all, Carol. Obviously you've never been there.

COSTELLO: I know. Well, it's a PG -- well, we could be a PG rated show at 5:00 a.m.

MYERS: Yes, let's not even try it.

COSTELLO: OK.

MYERS: OK.

COSTELLO: All right.

MYERS: The bosses are watching.

(WEATHER REPORT)

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