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Mideast Cease-Fire Announced; Rice Urges European-U.S. Partnership; Bush Continues Promotion of Social Security Reform; Veterans Struggle with Medical Finances

Aired February 08, 2005 - 10:00   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.


SOLEDAD O'BRIEN, CNN CO-ANCHOR: Let's throw it down to Atlanta now. Rick Sanchez and Betty Nguyen are at the CNN Center. They're going to take you through the next couple of hour on CNN LIVE TODAY.
You guys getting all misty because I know...

BETTY NGUYEN, CNN ANCHOR: Oh, my goodness. Rob still kissing up to Jack.

(LAUGHTER)

NGUYEN: Boy, what a week it has been so far.

RICK SANCHEZ, CNN CO-ANCHOR: I tried it, Rob. It doesn't work. Last time I went there, he's just as mean.

(LAUGHTER)

ROB MARCIANO, CNN METEOROLOGIST: See you guys later. We'll see you in a couple days.

SANCHEZ: All right. Appreciate it.

Boy, we've got a lot going for you on this morning. First of all, the whole world seems to have its fingers collectively crossed over this deal in Sharm el Sheikh between the Israelis and Palestinians.

We've got two parades for you today.

NGUYEN: Oh, yes.

SANCHEZ: One in Boston and another one in...

NGUYEN: Mardi Gras.

SANCHEZ: Mardi Gras, as well.

And Condoleezza Rice making news today. She's going to be in Europe mending fences, some would say. We would have it all.

NGUYEN: And we'll be taking that speech live when it happens. Right now here's what's happening now in the news.

And the Middle East is being hailed as a new opportunity for peace. Israeli Prime Minister Ariel Sharon and Palestinian leader Mahmoud Abbas have reached an agreement to end violence. It is the first high-level meeting the two sides have had in four years. And we'll have much more on this in just a minute.

In the meantime, U.S. Secretary Condoleezza Rice met earlier today with the Vatican's No. 2 official, after the pope's hospitalization prompted the cancellation of their scheduled meeting. They discussed religious freedom and U.S./Vatican relations. Now, Rice is due to deliver an international policy speech in Paris next hour. And CNN will carry that live when it happens.

The full Senate could vote today on President Bush's nominee to head the Department of Homeland Security. Michael Chertoff has already won committee approval and is expected to easily win Senate confirmation. If so, he would succeed outgoing Homeland Chief Tom Ridge.

And a top Vatican official comment is raising speculation that the pope could resign. The official did not rule out such an idea when a reporter raised that question. The frail 84-year-old pontiff has been hospitalized the past week with the flu and breathing problems. Doctors have suggested he remain hospitalized a few more days.

Well, good morning, everybody. I'm Betty Nguyen in for Daryn Kagan today.

SANCHEZ: And I'm Rick Sanchez.

Some of the biggest moves toward Middle East peace in more than four years. How big is it? Well, Israel and the Palestinian Authority have now agreed to end all violence against each other. Historic deal announced today in the Red Sea resort of Sharm el Sheikh.

CNN's John Vause is covering the summit. He's joining us now with some of the details.

John, quite literally, what's the deal?

JOHN VAUSE, CNN CORRESPONDENT: Well, hello, Rick. Well, it's a newborn opportunity for peace, according to the Palestinian President Mahmoud Abbas. This is the deal, he says, which will end more than four years of violence, more than four years of bloodshed between the Israelis and the Palestinians.

(BEGIN VIDEO CLIP)

MAMOUD ABBAS, PRESIDENT, PALESTINIAN AUTHORITY (through translator): We have agreed with the Prime Minister Ariel Sharon to cease all acts of violence against the Israelis and against the Palestinians wherever they are. Tranquility and quiet that will be witnessed in our land starting today is the beginning for a new era. The beginning of peace and hope.

(END VIDEO CLIP) VAUSE: Now, Mr. Abbas said that there were still differences between Israel and the Palestinians. And this is just the beginning of trying to bridge that gap between the two sides. Differences, he said, like Jewish settlements built in Palestinian territory. Differences about the barrier, which Israel is building through the West Bank.

On the issue of Palestinian prisoners being held by Israel, and also east Jerusalem as the capital of a future Palestinian state, he said those differences would only be resolved by a return to the U.S.- backed Roadmap Peace Plan. For his part, the Israeli Prime Minister Ariel Sharon described this as a major turning point, but he warned there were extremists who seek to destroy this new chance for peace.

(BEGIN VIDEO CLIP)

ARIEL SHARON, PRIME MINISTER, ISRAEL (through translator): That this day will be the day that marks the re-launching of the process for a better future. That will lead us towards mutual respect and peace for the Middle East.

(END VIDEO CLIP)

Now, part of the spirit of good will and optimism, the governments of Egypt and Jordan have announced that their ambassadors will be returning to Tel Aviv. They were withdrawn shortly after the outbreak of violence, the Intifada in September 2001.

And one final note, Rick. The Israeli Prime Minister Ariel Sharon has invited Mahmoud Abbas to visit his ranch in southern Israel. That's a bit like getting an invitation to visit with President Bush in Crawford, Texas -- Rick.

SANCHEZ: John, as you well know, we've been here before. What gives you any sense, if at all, that this time it might be different?

VAUSE: Well, the mood definitely is different, for one thing. But the big factor in all of this is the absence of Yasser Arafat. His death in November of last year paved the way for the election of Mahmoud Abbas, the democratically elected leader of the Palestinian authority. A pragmatist, a moderate who has moved quickly against the militant groups, deploying security forces in Gaza. He's also secured a cease-fire deal with those militant groups.

Now the big factor in all this, will that cease-fire hold in the weeks and months ahead? But also, Rick, there's been four years of violence and almost 5,000 people have been killed. And there is really a sense now that both sides are tired of the bloodshed.

SANCHEZ: John Vause with such an important story for us. We certainly thank you. John, we'll get back to you -- Betty.

NGUYEN: Secretary of State Condoleezza Rice says the Palestinian security forces are limited in stopping militant attacks on Israel. But Rice says the Palestinian forces must do what they can to keep the peace. Rice spoke from Rome after meeting with her Italian counterpart.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, SECRETARY OF STATE: There are places where the Palestinian security forces are quite capable of acting. And they need to act where they can act. When they arrest somebody, they need to hold them. When they see bomb-making factories, they need to destroy them. When there are smuggling operations, they need to disrupt them. And those places that the Palestinians can act, they need to act.

The overall reform of their security forces and unification of their security forces is something that the international community can help them with.

(END VIDEO CLIP)

NGUYEN: From Rome Rice traveled on to Paris continuing her European/Middle East tour. Now next hour, Rice will deliver her first major foreign policy address as secretary of state.

And CNN's Jim Bittermann is cover covering the speech in Paris. He joins us with the latest.

Hi there, Jim.

JIM BITTERMANN, CNN CORRESPONDENT: Hi, Betty. Yes, in fact, we're expecting what the State Department calls a major address by the foreign secretary -- Secretary of State Rice as she arrives here. It has been kind of a low-key visit as far as the French are concerned. There hasn't been a whole lot of pre-publicity about this visit.

She's going to be speaking at one of the most prestigious universities in France, the Institute D'Etudes Politic. Better known to everybody here in Paris as Science Po. It is sort of the Harvard or Yale of France. She'll be dressing a very select crowd in the next hour.

We expect what she'll be doing is kind of holding out an olive branch to the Europeans. She said earlier on her trip that she, in fact, thought she was hearing from the Europeans an interest in putting the last recent history of relations between Europe and the United States behind.

Having said that, there's still a considerable amount of animosity, if you can believe the recent public opinion polls taken by the German Marshall Fund. That poll which was released just today indicates that about 65 percent of the French and 57 percent of the Germans do not support a leading role for the United States in foreign affairs. And what's more, only 11 percent of people in both countries think that George Bush has done a good job in his conduct of foreign policy. So still a considerable way to go.

On the other hand, there are other signs of other kinds of improvements in relations. For instance, it's been announced in the last few hours that there are negotiations going on now to release three French nationals who have been held at Guantanamo Bay, Cuba since they were picked up about three years ago in Afghanistan. That would, of course, improve things. At least improve the atmosphere just ahead of Condoleezza Rice's talks with the French Foreign Minister Michelle Vernier.

That's one thing. On the other hand, you see these things blowing hot and cold. And the other hand, you see the ambassador of France in Iraq. He said just the other day that, in fact, there should be a date certain fixed for the withdrawal of American troops. That's something the Bush administration is definitely opposed to -- Betty.

NGUYEN: All right. CNN's Jim Bittermann in Paris. Thank you for that.

And you can watch Condoleezza Rice's speech from Paris right here on CNN LIVE TODAY. That's at the top of the hour -- Rick.

SANCHEZ: President Bush is hitting the road to promote his $2.5 trillion spending plan. The president left the White House just a couple minutes ago. We may have some tape of that. He's got a speech before the Detroit Economic Club today. Mr. Bush yesterday sent Congress a budget that he describes as "lean."

By the way, there may be a little bit of a bounce in the president's step on this day. As the latest poll numbers show, his approval ratings are up.

CNN's Elaine Quijano is at the White House. She's been following this story for us and she joins us.

Good morning, Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Good morning to you, Rick. That's right. As President Bush goes to sell his budget proposals in Detroit today, he does so with a boost in the polls. A new CNN/"USA Today"/Gallup poll finds that President Bush's approval rating is up about six points from last month. Now at 57 percent with 40 percent of people saying they disapprove of how he's handling his job, but underscoring how closely that approval rating is tied to Iraq.

It is important to note that this poll was taken just days after the January 30 election. Where despite some violence, the overall impression was that the election was a success. And reflecting that is a jump in President Bush's Iraq approval rating. Taking a look at those numbers, it went from 42 percent last month to 50 percent now, with 48 percent of people saying they disapprove.

Now, as President Bush looks to his domestic agenda, some say his success in that arena will depend largely on how the Iraq mission goes. Right now, the centerpiece of that second term agenda, of course, is reforming Social Security. Now, in recent weeks the White House has tried to frame the debate over the Social Security system to try to convince Americans that it's a system that needs to be overhauled soon before it runs out of money. And Of course, part of the president's solution includes personal accounts. But taking a look at how people perceive the president's handling of Social Security, 43 percent of people approve of how he's handling that. But 48 percent disapprove. Now, we're expecting that to be a theme, Social Security to be a theme when President Bush does speak to the Detroit Economic Club later today.

Aides say that spending restraint will be another topic. That coming one day after the president's budget proposals to cut or cut back some 150 federal programs. And finally, the president will also focus on policies he believes are pro-growth policies. Those include things like curbing lawsuits and making tax relief permanent.

But the president is meeting strong resistance from Democrats. Specifically people looking at the deficit and wondering how the president plans to keep a pledge to cut the deficit in half in five years. And on some of those proposed cuts, look for a pushback from lawmakers, Rick, on both sides of the aisle -- Rick.

SANCHEZ: Elaine Quijano following things there for us at the White House. We do thank you.

We should also tell you besides the budget, the president, as you heard Elaine refer to just moments ago, is going to be talking directly about Social Security and the budget when he's in Detroit today. And you can watch live coverage of that speech right here. Expect it on CNN. Should be some time around noon. That's Eastern, of course.

NGUYEN: And as we mentioned, at the top of the hour, a Mideast truce is agreed upon. And the leaders hope it is the beginning of a new peace opportunity. Still to come, we will have more on this historic day.

SANCHEZ: There are some big winners. There are some big losers. Coming up, a look at who is getting the short end of the stick in President Bush's new budget proposal.

NGUYEN: Plus, trapped beneath the earth. We will tell you how a mailman's normal routine led to this rescue of a 90-year-old woman.

(COMMERCIAL BREAK)

SANCHEZ: Let's do this now. We'll continue our look at the Middle East peace summit. That handshake is so important. Tentative cease-fire deal reached today between Israeli and Palestinian leaders. Although, the term "cease-fire" can be somewhat arguable at this point. Both Palestinian Authority President Mahmoud Abbas and Israeli Prime Minister Ariel Sharon are praising this agreement as a new beginning in the region.

Our next guest, he has spent years researching Arab and Israeli relations. Paul Scham, he works with the Public Policy Center at the Middle East Institute, and is currently a visiting scholar at George Washington University. He's good enough to join us now from Washington. Let's begin with this question about these two particular men. We know that Ariel Sharon hated Yasser Arafat like poison. Can he get along with this Guy? Can these two gentlemen get along? And will that make the difference in this seeming peace accord?

PAUL SCHAM, PUBLIC POLICY CTR. AT MIDEAST INST.: I don't think there's any problem with President Abbas and Prime Minister Sharon getting along. The problem, I think, comes from their two political constituencies. What we see is real, what we've seen on the screens this morning about how there's a honeymoon going on.

But when things get difficult, when Hamas or Islamic Jihad do as they say they will and start trying to hit Israeli soldiers or civilians, and when the Israeli right wing, many of whom are in Sharon's own party, start trying to prevent the Gaza disengagement, which much of this is based on, then...

SANCHEZ: OK. I get it. I think I know where you're going here. You're saying it is fine for these guys to sign accords, kiss, shake hands, do whatever they want. But if the people behind them aren't truly behind them, they're going to have serious problems.

What do they have to do, in Sharon's case, to get some of the hard liners behind them? In Mahmoud Abbas' case, to get some of the defiant, extremist, Palestinian groups, the PFLPs and the likes behind him?

SCHAM: Sharon is an absolute master at the political game in Israel. He's facing about a crisis every week. And so far, even the ones he's lost, he's ended up winning the war. Abbas has a more delicate plan because he has to talk with Sharon and convince him that he's doing something without, at this point at least, dismantling the terror organizations.

And I think that both of them are very strategically placed to do it. But the point is Abbas has to show some results. And this involves Palestinian prisoners and others.

SANCHEZ: So you think Abbas has the harder task, though? You think it's going to be harder for him to control some of these so- called terrorist organizations working outside of the Palestinian areas?

SCHAM: I think both of them in their own bailiwick have a pretty difficult task. What will be seen in the Palestinian area if he fails is violence. In the Israeli arena it will be votes against Sharon in the Knesset and in Likud forums.

SANCHEZ: Let me ask you this real quick. Because I think it is interesting that the United States has disengaged. The French and the European community has basically criticized the United States for not engaging in this process in the last four years. And yet, here we are here now with these two leaders shaking hands despite that. Or maybe, looking at it from a Nixonian standpoint, because of it. What's your opinion? SCHAM: I think the United States has re-engaged not as much as some would wish, which would be shown by appointing a very high level envoy. But the United States has changed its position from the last four years. It is not coincidental that all of them met with Dr. Rice a couple of days ago.

SANCHEZ: Changed its position how, before we run out of time? How has the United States changed its position? When I hear you say that, I wonder...

SCHAM: It's changed its position as far as its involvement.

SANCHEZ: Oh.

SCHAM: It is now seriously involved but a bit in the background not in the utter foreground.

SANCHEZ: But still, people will say they're too far to the side of the Israelis and not giving the Palestinians enough respect. You'll hear that all the time in the Arab world. Will that change?

SCHAM: I don't think that will change. At this point, I think the two positions of the Israelis and the Americans are very, very close. And the main game in town is the Gaza disengagement. Neither side wants to endanger that.

SANCHEZ: You're good. Paul Scham, thanks. We appreciate having you here. We'll get you back again.

SCHAM: Good to be with you.

SANCHEZ: Betty.

NGUYEN: All right. We're getting some tape in of President Bush who is about to head to Detroit today to speak at the Detroit Economic Club. He's going to be talking about the budget. This is some video of him heading off. He'll be boarding on Marine 1 on the South Lawn. And once that happens he'll be speaking at 12:20 Eastern Time talking budget in Detroit. And of course, we'll be following all of that.

SANCHEZ: Got to sell that Social Security plan.

NGUYEN: Mm-hmm.

SANCHEZ: still to come on CNN LIVE TODAY, veterans may not be too happy with President Bush's proposed budget.

NGUYEN: And a man who risked his life for his country says it is not fair that the president is now wanting him to pay more. His story, that's coming up.

SANCHEZ: Also, can you tell the real from the fake? There's a little test we're going to do for you. Maybe you can't. But it's a job that can save the lives and prevent possible terrorists attacks from happening. It's important. Still to come, meet the man behind this particular grueling task. (COMMERCIAL BREAK)

NGUYEN: President Bush's proposed budget boosts spending for the military while cutting some benefits for those who have already served.

CNN's Keith Oppenheim visits one veteran of World War II who says his toughest battle could be paying for his prescriptions under this new plan.

(BEGIN VIDEOTAPE)

JERRY VLECK, VETERAN OF WORLD WAR II: In the morning it can be real rough.

KEITH OPPENHEIM, CNN CORRESPONDENT: Jerry Vleck is heading home.

VLECK: What else have I got left in life but to help with fellow veterans?

OPPENHEIM: Several times a week he volunteers for the American Legion at the V.A. hospital in North Chicago, the same place he gets all his health care. This year he'll celebrate the 60-anniversary of another homecoming, his return from two years in the Pacific during World War II. Like many in his generation, Vleck is modest.

VLECK: I didn't do anything different than anybody else was doing. We were trying to stay alive, let me put it to you that way.

OPPENHEIM: At age 79, Jerry Vleck is still trying to stay alive.

VLECK: The antonone (ph)...

OPPENHEIM (on camera): What's that for?

VLECK: That's for blood pressure.

OPPENHEIM (voice-over): He now takes eight different medications every day. Mainly for heart disease and diabetes.

(on camera): How much do you pay for one of those now? For one prescription?

VLECK: Seven dollars.

OPPENHEIM (voice-over): Right now, the costs are relatively low for Vleck, as most of his health care is covered by his veteran's benefits.

(on camera): On one level you must feel lucky that you're a veteran.

VLECK: Oh, I'm lucky I'm alive. Let's put it that way. I know a lot of guys that aren't. OPPENHEIM (voice-over): But in the president's current budget proposal, Vleck would have to pay $15 per prescription, more than twice as much. In his case, with eight medications, that could add up to more than $1,200 per year. And that's not small change for a guy who only takes in about $2,200 a month between Social Security and his truck driver's pension. With these increases, he'll feel the squeeze. An insult, he says, to those who risk their lives for their country.

VLECK: Especially to the ones who can't afford it. Especially them.

OPPENHEIM (on camera): Are you that person? Can you afford to pay $7 for one of these?

VLECK: No. Right now, it's not a question of whether I can afford it or not. I have to do it.

OPPENHEIM (voice-over): With all his ailments, Jerry Vleck has been getting by. As a widower he has lived by himself for 17 years. But now he's looking for a little help from Congress, which has been known to stop presidents from touching benefits for veterans.

VLECK: I hope they shoot it down. I don't think it's right.

Keith Oppenheim, CNN, Gray's Lake, Illinois.

(END VIDEOTAPE)

SANCHEZ: Well, just a piece of paper, but it can be one of the most deadly weapons against the United States. Still to come, false identification. How to tell the fakes from the real thing. And what the government is trying to do to prevent people who have them, the fakes that is, from entering the country.

NGUYEN: Plus a Tennessee teacher in hot water for allegedly getting too close and personal. We'll have that story straight ahead.

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Aired February 8, 2005 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN CO-ANCHOR: Let's throw it down to Atlanta now. Rick Sanchez and Betty Nguyen are at the CNN Center. They're going to take you through the next couple of hour on CNN LIVE TODAY.
You guys getting all misty because I know...

BETTY NGUYEN, CNN ANCHOR: Oh, my goodness. Rob still kissing up to Jack.

(LAUGHTER)

NGUYEN: Boy, what a week it has been so far.

RICK SANCHEZ, CNN CO-ANCHOR: I tried it, Rob. It doesn't work. Last time I went there, he's just as mean.

(LAUGHTER)

ROB MARCIANO, CNN METEOROLOGIST: See you guys later. We'll see you in a couple days.

SANCHEZ: All right. Appreciate it.

Boy, we've got a lot going for you on this morning. First of all, the whole world seems to have its fingers collectively crossed over this deal in Sharm el Sheikh between the Israelis and Palestinians.

We've got two parades for you today.

NGUYEN: Oh, yes.

SANCHEZ: One in Boston and another one in...

NGUYEN: Mardi Gras.

SANCHEZ: Mardi Gras, as well.

And Condoleezza Rice making news today. She's going to be in Europe mending fences, some would say. We would have it all.

NGUYEN: And we'll be taking that speech live when it happens. Right now here's what's happening now in the news.

And the Middle East is being hailed as a new opportunity for peace. Israeli Prime Minister Ariel Sharon and Palestinian leader Mahmoud Abbas have reached an agreement to end violence. It is the first high-level meeting the two sides have had in four years. And we'll have much more on this in just a minute.

In the meantime, U.S. Secretary Condoleezza Rice met earlier today with the Vatican's No. 2 official, after the pope's hospitalization prompted the cancellation of their scheduled meeting. They discussed religious freedom and U.S./Vatican relations. Now, Rice is due to deliver an international policy speech in Paris next hour. And CNN will carry that live when it happens.

The full Senate could vote today on President Bush's nominee to head the Department of Homeland Security. Michael Chertoff has already won committee approval and is expected to easily win Senate confirmation. If so, he would succeed outgoing Homeland Chief Tom Ridge.

And a top Vatican official comment is raising speculation that the pope could resign. The official did not rule out such an idea when a reporter raised that question. The frail 84-year-old pontiff has been hospitalized the past week with the flu and breathing problems. Doctors have suggested he remain hospitalized a few more days.

Well, good morning, everybody. I'm Betty Nguyen in for Daryn Kagan today.

SANCHEZ: And I'm Rick Sanchez.

Some of the biggest moves toward Middle East peace in more than four years. How big is it? Well, Israel and the Palestinian Authority have now agreed to end all violence against each other. Historic deal announced today in the Red Sea resort of Sharm el Sheikh.

CNN's John Vause is covering the summit. He's joining us now with some of the details.

John, quite literally, what's the deal?

JOHN VAUSE, CNN CORRESPONDENT: Well, hello, Rick. Well, it's a newborn opportunity for peace, according to the Palestinian President Mahmoud Abbas. This is the deal, he says, which will end more than four years of violence, more than four years of bloodshed between the Israelis and the Palestinians.

(BEGIN VIDEO CLIP)

MAMOUD ABBAS, PRESIDENT, PALESTINIAN AUTHORITY (through translator): We have agreed with the Prime Minister Ariel Sharon to cease all acts of violence against the Israelis and against the Palestinians wherever they are. Tranquility and quiet that will be witnessed in our land starting today is the beginning for a new era. The beginning of peace and hope.

(END VIDEO CLIP) VAUSE: Now, Mr. Abbas said that there were still differences between Israel and the Palestinians. And this is just the beginning of trying to bridge that gap between the two sides. Differences, he said, like Jewish settlements built in Palestinian territory. Differences about the barrier, which Israel is building through the West Bank.

On the issue of Palestinian prisoners being held by Israel, and also east Jerusalem as the capital of a future Palestinian state, he said those differences would only be resolved by a return to the U.S.- backed Roadmap Peace Plan. For his part, the Israeli Prime Minister Ariel Sharon described this as a major turning point, but he warned there were extremists who seek to destroy this new chance for peace.

(BEGIN VIDEO CLIP)

ARIEL SHARON, PRIME MINISTER, ISRAEL (through translator): That this day will be the day that marks the re-launching of the process for a better future. That will lead us towards mutual respect and peace for the Middle East.

(END VIDEO CLIP)

Now, part of the spirit of good will and optimism, the governments of Egypt and Jordan have announced that their ambassadors will be returning to Tel Aviv. They were withdrawn shortly after the outbreak of violence, the Intifada in September 2001.

And one final note, Rick. The Israeli Prime Minister Ariel Sharon has invited Mahmoud Abbas to visit his ranch in southern Israel. That's a bit like getting an invitation to visit with President Bush in Crawford, Texas -- Rick.

SANCHEZ: John, as you well know, we've been here before. What gives you any sense, if at all, that this time it might be different?

VAUSE: Well, the mood definitely is different, for one thing. But the big factor in all of this is the absence of Yasser Arafat. His death in November of last year paved the way for the election of Mahmoud Abbas, the democratically elected leader of the Palestinian authority. A pragmatist, a moderate who has moved quickly against the militant groups, deploying security forces in Gaza. He's also secured a cease-fire deal with those militant groups.

Now the big factor in all this, will that cease-fire hold in the weeks and months ahead? But also, Rick, there's been four years of violence and almost 5,000 people have been killed. And there is really a sense now that both sides are tired of the bloodshed.

SANCHEZ: John Vause with such an important story for us. We certainly thank you. John, we'll get back to you -- Betty.

NGUYEN: Secretary of State Condoleezza Rice says the Palestinian security forces are limited in stopping militant attacks on Israel. But Rice says the Palestinian forces must do what they can to keep the peace. Rice spoke from Rome after meeting with her Italian counterpart.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, SECRETARY OF STATE: There are places where the Palestinian security forces are quite capable of acting. And they need to act where they can act. When they arrest somebody, they need to hold them. When they see bomb-making factories, they need to destroy them. When there are smuggling operations, they need to disrupt them. And those places that the Palestinians can act, they need to act.

The overall reform of their security forces and unification of their security forces is something that the international community can help them with.

(END VIDEO CLIP)

NGUYEN: From Rome Rice traveled on to Paris continuing her European/Middle East tour. Now next hour, Rice will deliver her first major foreign policy address as secretary of state.

And CNN's Jim Bittermann is cover covering the speech in Paris. He joins us with the latest.

Hi there, Jim.

JIM BITTERMANN, CNN CORRESPONDENT: Hi, Betty. Yes, in fact, we're expecting what the State Department calls a major address by the foreign secretary -- Secretary of State Rice as she arrives here. It has been kind of a low-key visit as far as the French are concerned. There hasn't been a whole lot of pre-publicity about this visit.

She's going to be speaking at one of the most prestigious universities in France, the Institute D'Etudes Politic. Better known to everybody here in Paris as Science Po. It is sort of the Harvard or Yale of France. She'll be dressing a very select crowd in the next hour.

We expect what she'll be doing is kind of holding out an olive branch to the Europeans. She said earlier on her trip that she, in fact, thought she was hearing from the Europeans an interest in putting the last recent history of relations between Europe and the United States behind.

Having said that, there's still a considerable amount of animosity, if you can believe the recent public opinion polls taken by the German Marshall Fund. That poll which was released just today indicates that about 65 percent of the French and 57 percent of the Germans do not support a leading role for the United States in foreign affairs. And what's more, only 11 percent of people in both countries think that George Bush has done a good job in his conduct of foreign policy. So still a considerable way to go.

On the other hand, there are other signs of other kinds of improvements in relations. For instance, it's been announced in the last few hours that there are negotiations going on now to release three French nationals who have been held at Guantanamo Bay, Cuba since they were picked up about three years ago in Afghanistan. That would, of course, improve things. At least improve the atmosphere just ahead of Condoleezza Rice's talks with the French Foreign Minister Michelle Vernier.

That's one thing. On the other hand, you see these things blowing hot and cold. And the other hand, you see the ambassador of France in Iraq. He said just the other day that, in fact, there should be a date certain fixed for the withdrawal of American troops. That's something the Bush administration is definitely opposed to -- Betty.

NGUYEN: All right. CNN's Jim Bittermann in Paris. Thank you for that.

And you can watch Condoleezza Rice's speech from Paris right here on CNN LIVE TODAY. That's at the top of the hour -- Rick.

SANCHEZ: President Bush is hitting the road to promote his $2.5 trillion spending plan. The president left the White House just a couple minutes ago. We may have some tape of that. He's got a speech before the Detroit Economic Club today. Mr. Bush yesterday sent Congress a budget that he describes as "lean."

By the way, there may be a little bit of a bounce in the president's step on this day. As the latest poll numbers show, his approval ratings are up.

CNN's Elaine Quijano is at the White House. She's been following this story for us and she joins us.

Good morning, Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Good morning to you, Rick. That's right. As President Bush goes to sell his budget proposals in Detroit today, he does so with a boost in the polls. A new CNN/"USA Today"/Gallup poll finds that President Bush's approval rating is up about six points from last month. Now at 57 percent with 40 percent of people saying they disapprove of how he's handling his job, but underscoring how closely that approval rating is tied to Iraq.

It is important to note that this poll was taken just days after the January 30 election. Where despite some violence, the overall impression was that the election was a success. And reflecting that is a jump in President Bush's Iraq approval rating. Taking a look at those numbers, it went from 42 percent last month to 50 percent now, with 48 percent of people saying they disapprove.

Now, as President Bush looks to his domestic agenda, some say his success in that arena will depend largely on how the Iraq mission goes. Right now, the centerpiece of that second term agenda, of course, is reforming Social Security. Now, in recent weeks the White House has tried to frame the debate over the Social Security system to try to convince Americans that it's a system that needs to be overhauled soon before it runs out of money. And Of course, part of the president's solution includes personal accounts. But taking a look at how people perceive the president's handling of Social Security, 43 percent of people approve of how he's handling that. But 48 percent disapprove. Now, we're expecting that to be a theme, Social Security to be a theme when President Bush does speak to the Detroit Economic Club later today.

Aides say that spending restraint will be another topic. That coming one day after the president's budget proposals to cut or cut back some 150 federal programs. And finally, the president will also focus on policies he believes are pro-growth policies. Those include things like curbing lawsuits and making tax relief permanent.

But the president is meeting strong resistance from Democrats. Specifically people looking at the deficit and wondering how the president plans to keep a pledge to cut the deficit in half in five years. And on some of those proposed cuts, look for a pushback from lawmakers, Rick, on both sides of the aisle -- Rick.

SANCHEZ: Elaine Quijano following things there for us at the White House. We do thank you.

We should also tell you besides the budget, the president, as you heard Elaine refer to just moments ago, is going to be talking directly about Social Security and the budget when he's in Detroit today. And you can watch live coverage of that speech right here. Expect it on CNN. Should be some time around noon. That's Eastern, of course.

NGUYEN: And as we mentioned, at the top of the hour, a Mideast truce is agreed upon. And the leaders hope it is the beginning of a new peace opportunity. Still to come, we will have more on this historic day.

SANCHEZ: There are some big winners. There are some big losers. Coming up, a look at who is getting the short end of the stick in President Bush's new budget proposal.

NGUYEN: Plus, trapped beneath the earth. We will tell you how a mailman's normal routine led to this rescue of a 90-year-old woman.

(COMMERCIAL BREAK)

SANCHEZ: Let's do this now. We'll continue our look at the Middle East peace summit. That handshake is so important. Tentative cease-fire deal reached today between Israeli and Palestinian leaders. Although, the term "cease-fire" can be somewhat arguable at this point. Both Palestinian Authority President Mahmoud Abbas and Israeli Prime Minister Ariel Sharon are praising this agreement as a new beginning in the region.

Our next guest, he has spent years researching Arab and Israeli relations. Paul Scham, he works with the Public Policy Center at the Middle East Institute, and is currently a visiting scholar at George Washington University. He's good enough to join us now from Washington. Let's begin with this question about these two particular men. We know that Ariel Sharon hated Yasser Arafat like poison. Can he get along with this Guy? Can these two gentlemen get along? And will that make the difference in this seeming peace accord?

PAUL SCHAM, PUBLIC POLICY CTR. AT MIDEAST INST.: I don't think there's any problem with President Abbas and Prime Minister Sharon getting along. The problem, I think, comes from their two political constituencies. What we see is real, what we've seen on the screens this morning about how there's a honeymoon going on.

But when things get difficult, when Hamas or Islamic Jihad do as they say they will and start trying to hit Israeli soldiers or civilians, and when the Israeli right wing, many of whom are in Sharon's own party, start trying to prevent the Gaza disengagement, which much of this is based on, then...

SANCHEZ: OK. I get it. I think I know where you're going here. You're saying it is fine for these guys to sign accords, kiss, shake hands, do whatever they want. But if the people behind them aren't truly behind them, they're going to have serious problems.

What do they have to do, in Sharon's case, to get some of the hard liners behind them? In Mahmoud Abbas' case, to get some of the defiant, extremist, Palestinian groups, the PFLPs and the likes behind him?

SCHAM: Sharon is an absolute master at the political game in Israel. He's facing about a crisis every week. And so far, even the ones he's lost, he's ended up winning the war. Abbas has a more delicate plan because he has to talk with Sharon and convince him that he's doing something without, at this point at least, dismantling the terror organizations.

And I think that both of them are very strategically placed to do it. But the point is Abbas has to show some results. And this involves Palestinian prisoners and others.

SANCHEZ: So you think Abbas has the harder task, though? You think it's going to be harder for him to control some of these so- called terrorist organizations working outside of the Palestinian areas?

SCHAM: I think both of them in their own bailiwick have a pretty difficult task. What will be seen in the Palestinian area if he fails is violence. In the Israeli arena it will be votes against Sharon in the Knesset and in Likud forums.

SANCHEZ: Let me ask you this real quick. Because I think it is interesting that the United States has disengaged. The French and the European community has basically criticized the United States for not engaging in this process in the last four years. And yet, here we are here now with these two leaders shaking hands despite that. Or maybe, looking at it from a Nixonian standpoint, because of it. What's your opinion? SCHAM: I think the United States has re-engaged not as much as some would wish, which would be shown by appointing a very high level envoy. But the United States has changed its position from the last four years. It is not coincidental that all of them met with Dr. Rice a couple of days ago.

SANCHEZ: Changed its position how, before we run out of time? How has the United States changed its position? When I hear you say that, I wonder...

SCHAM: It's changed its position as far as its involvement.

SANCHEZ: Oh.

SCHAM: It is now seriously involved but a bit in the background not in the utter foreground.

SANCHEZ: But still, people will say they're too far to the side of the Israelis and not giving the Palestinians enough respect. You'll hear that all the time in the Arab world. Will that change?

SCHAM: I don't think that will change. At this point, I think the two positions of the Israelis and the Americans are very, very close. And the main game in town is the Gaza disengagement. Neither side wants to endanger that.

SANCHEZ: You're good. Paul Scham, thanks. We appreciate having you here. We'll get you back again.

SCHAM: Good to be with you.

SANCHEZ: Betty.

NGUYEN: All right. We're getting some tape in of President Bush who is about to head to Detroit today to speak at the Detroit Economic Club. He's going to be talking about the budget. This is some video of him heading off. He'll be boarding on Marine 1 on the South Lawn. And once that happens he'll be speaking at 12:20 Eastern Time talking budget in Detroit. And of course, we'll be following all of that.

SANCHEZ: Got to sell that Social Security plan.

NGUYEN: Mm-hmm.

SANCHEZ: still to come on CNN LIVE TODAY, veterans may not be too happy with President Bush's proposed budget.

NGUYEN: And a man who risked his life for his country says it is not fair that the president is now wanting him to pay more. His story, that's coming up.

SANCHEZ: Also, can you tell the real from the fake? There's a little test we're going to do for you. Maybe you can't. But it's a job that can save the lives and prevent possible terrorists attacks from happening. It's important. Still to come, meet the man behind this particular grueling task. (COMMERCIAL BREAK)

NGUYEN: President Bush's proposed budget boosts spending for the military while cutting some benefits for those who have already served.

CNN's Keith Oppenheim visits one veteran of World War II who says his toughest battle could be paying for his prescriptions under this new plan.

(BEGIN VIDEOTAPE)

JERRY VLECK, VETERAN OF WORLD WAR II: In the morning it can be real rough.

KEITH OPPENHEIM, CNN CORRESPONDENT: Jerry Vleck is heading home.

VLECK: What else have I got left in life but to help with fellow veterans?

OPPENHEIM: Several times a week he volunteers for the American Legion at the V.A. hospital in North Chicago, the same place he gets all his health care. This year he'll celebrate the 60-anniversary of another homecoming, his return from two years in the Pacific during World War II. Like many in his generation, Vleck is modest.

VLECK: I didn't do anything different than anybody else was doing. We were trying to stay alive, let me put it to you that way.

OPPENHEIM: At age 79, Jerry Vleck is still trying to stay alive.

VLECK: The antonone (ph)...

OPPENHEIM (on camera): What's that for?

VLECK: That's for blood pressure.

OPPENHEIM (voice-over): He now takes eight different medications every day. Mainly for heart disease and diabetes.

(on camera): How much do you pay for one of those now? For one prescription?

VLECK: Seven dollars.

OPPENHEIM (voice-over): Right now, the costs are relatively low for Vleck, as most of his health care is covered by his veteran's benefits.

(on camera): On one level you must feel lucky that you're a veteran.

VLECK: Oh, I'm lucky I'm alive. Let's put it that way. I know a lot of guys that aren't. OPPENHEIM (voice-over): But in the president's current budget proposal, Vleck would have to pay $15 per prescription, more than twice as much. In his case, with eight medications, that could add up to more than $1,200 per year. And that's not small change for a guy who only takes in about $2,200 a month between Social Security and his truck driver's pension. With these increases, he'll feel the squeeze. An insult, he says, to those who risk their lives for their country.

VLECK: Especially to the ones who can't afford it. Especially them.

OPPENHEIM (on camera): Are you that person? Can you afford to pay $7 for one of these?

VLECK: No. Right now, it's not a question of whether I can afford it or not. I have to do it.

OPPENHEIM (voice-over): With all his ailments, Jerry Vleck has been getting by. As a widower he has lived by himself for 17 years. But now he's looking for a little help from Congress, which has been known to stop presidents from touching benefits for veterans.

VLECK: I hope they shoot it down. I don't think it's right.

Keith Oppenheim, CNN, Gray's Lake, Illinois.

(END VIDEOTAPE)

SANCHEZ: Well, just a piece of paper, but it can be one of the most deadly weapons against the United States. Still to come, false identification. How to tell the fakes from the real thing. And what the government is trying to do to prevent people who have them, the fakes that is, from entering the country.

NGUYEN: Plus a Tennessee teacher in hot water for allegedly getting too close and personal. We'll have that story straight ahead.

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