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The Situation Room

Bush Speech Attempts to Better Explain War; Hillary Rodham Clinton Walks Fine Line on Iraq; Update on Housing Bubble; Billionaire Richard Branson Coins New Holiday; California Supreme Court Refuses to Halt Execution of Stanley Tookie Williams

Aired November 30, 2005 - 19:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

WOLF BLITZER, CNN ANCHOR: Welcome to THE SITUATION ROOM, where new pictures and information are arriving all the time.
Standing by, CNN reporters across the United States and around the world to bring you the days top stories. Happening now, President Bush's Iraq vision, from every angle. Are Americans buying his call for patience, and what about the troops and the people in Iraq?

It's 7:00 p.m. in Washington. We'll get a reality check on what the president said what he left out.

Also, this hour, Hillary Rodham Clinton's Iraq dilemma. Her preemptive strike against the president's speech could say a lot about her White House ambitions.

And a British tycoon's holiday gift. Chrismahanukwanzakah. I'll ask Sir Richard Branson how he came up with what and what he hopes to accomplish. I'm Wolf Blitzer, and you're in THE SITUATION ROOM.

This hour, many Americans are weighing President Bush's words and what lies ahead in Iraq. Mr. Bush sharpened his defense of the war today and set the stage for an eventual withdrawal. He did not do what some people hoped, and others had demanded: Sketch an actual timetable for bringing the troops home.

We have correspondents standing by in Baghdad, at the Pentagon, and the White House. But up first, the president's message and what his opponents are saying about it.

(BEGIN VIDEO TAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Our goal is to train enough Iraqi forces so they can carry the fight. This will take time. And patience.

BLITZER, (voice-over): It's a time when the public is more impatient than ever about the Iraq mission and the president's handling of it. Mr. Bush says the strategy for victory will have a payoff.

BUSH: Iraqis and Americans share a common enemy. When that enemy is defeated in Iraq, Americans will be safer here at home.

BLITZER: Speaking in U.S. Naval Academy in Maryland, the president laid down broad markers for Iraqis to take over their own security. But he stood firm in his refusal to set a timetable for U.S. forces to leave.

BUSH: Setting an artificial deadline to withdraw would send the message across the world that America is weak, and an unreliable ally.

BLITZER: Democrat leaders say they don't want to set any artificial deadlines either, but they do want some sense of when the troops can leave, and they say the president didn't provide that.

REP. NANCY PELOSI, (D) MINORITY LEADER: Clearly the president fails to understand that a new course is needed in Iraq. The president has dug us into a deep hole in Iraq. It is time for him to stop digging.

BLITZER: And some Bush critics complain the military backdrop for the president's speech gave the wrong impression.

JOHN KERRY, (D) MASSACHUSETTS: The troops don't belong to his point of view. They belong to America. And to Americans. They are Americans.

(END VIDEO TAPE)

BLITZER: The White House says this was the first in a series of speeches designed to better explain the mission in Iraq. Let's bring in our correspondents, first with our White House Correspondent Suzanne Malveaux. What did we learn new today?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: We really learned very little that was new here. The president outlined the breakdown of the enemy, saying they are rejectionists. The Sunnis who reject the government. The Saddamists who hope that the dictator comes back to power, and the terrorists, those associated with al Qaeda.

Different ways the administration is dealing with those groups. He talked a little bit, as well, about the training of those Iraqi troops, what works, what didn't work. But if you were looking for a clear exit strategy, when it comes to withdrawal of U.S. troops, you just didn't see it.

BLITZER: It is so important, Suzanne, for the president to be doing all this right now?

MALVEAUX: Certainly this is an important time for the president. Just two weeks away, from the Iraqi elections, national election. The president's approval rate, about 36 percent. The administration expects that you are going to see a rise, an uptick in the violence in Iraq, around the elections.

The president desperately wants American support when it comes to this particular part of the mission. The other thing, of course, is they are looking for the next six months, this is when they really want to see what unfolds on the ground in Iraq. They need to see the serious progress, because of the congressional midterm elections for next November.

BLITZER: From the White House, let's head over to the Pentagon, excuse me, to the situation in Baghdad. Suzanne, thank you very much. Our senior international correspondent Nic Robertson is standing by with reaction from Iraq. Nic?

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: Well, Wolf, if you look at what President Bush said about Tal Afar: 11 Iraqi battalions, five U.S. battalions, a big turnaround, he said, compared to the offensive in Fallujah last year.

He's absolutely right. There were more troops involved. When you take a closer analysis at it, they were fighting to a U.S. plan. They had to have U.S. backup, armored personnel carriers, tanks, and helicopters. The bottom line on that offensive, no U.S. involvement, there would have been no victory.

If we analyze the sort of two significant offensives since then, Operation Steel Curtain, up on the border close to Syria, 3,000 U.S. troops, 550 Iraqi troops. The operation that started just today, Operation Iron Hammer in the west in Iraq, 2,000 U.S. troops, 500 Iraqi troops. That's more the norm. The norm at the moment still is the U.S. troops taking the lion's share of the heavy lifting in the battles, Wolf.

BLITZER: Is this fact on the ground, that there is these Shiite militias that are wearing uniforms, going around, doing what they're doing, is that part of the solution or problem right now, because we didn't hear the president say anything about the armed militias, some calling them death squads, that are simply roaming around on their own.

ROBERTSON: The president didn't address it in his speech, the document that the White House put out today, there was a reference to that. There was a reference to the U.S. could only be defeated by the insurgents if it gives up the fight in Iraq. It cannot lose militarily.

One of the other key points, they said, in this document, is that these militias, inside, or indicated these militias inside the security forces here had to be dealt with.

They also believe there's bigger political process forward here. That there will be more intelligence developed about who the people in the insurgency are, who are the ones that can be dealt with. But dealing with the militias inside the security forces is on the agenda, if you will, Wolf.

BLITZER: Nic Robertson, thank you. Let's head over to the Pentagon. Get an assessment from there. Our senior pentagon correspondent, Jamie McIntyre is standing by. Do we have a hard number, Jamie? How many Iraqi troops are ready and able to fight right now?

NIC ROBERTSON, CNN SR. PENTAGON CORRESPONDENT: Wolf, the Pentagon gave out 212,000 Iraqi security forces trained and equipped. President Bush said about 120 battalions are actually in the fight. He said about 40 of those could lead the way and the other ones could be in support.

Each one is about between 300 and 800. If you do the math that's somewhere between 42,000, maybe 96,000 of that, about half of the 212,000 number actually fighting insurgents. That doesn't mean they're not doing good work. But when you talk about who can replace U.S. troops, you're at less than 100,000.

BLITZER: What about the U.S. troops who will be coming home starting soon? How many of them are expected to be returning in the coming weeks and months?

ROBERTSON: Some people missed the point that there's already a plan to bring 22,000 or so home after these December elections. Bringing the number of U.S. troops in Iraq down to about 138,000.

And then, of course, the Pentagon does have a plan to make some substantial cuts next year, you know, fingers crossed, conditions permitting. They are not talking about it publicly. They hope to bring 30 or 40,000 troops home by sometime next year. But still, that will leave over 100,000 troops in Iraq for an indefinite period of time.

BLITZER: Jamie, thanks very much.

And we're getting a story that's just coming into CNN. Let's head over to the CNN center in Atlanta. Our Fredricka Whitfield is standing by with details. What's happening, Fred?

FREDRICKA WHITFIELD, CNN ANCHOR: In California, despite a massive effort to avert the death sentence for Crips gang member and founder, Stanley "Tookie" Williams, the state supreme court justices have voted to decline blocking that execution. The co-founder of the Crips, Tookie Williams, attracted a number of celebrities right there outside this prison, and his execution is set for December 13 by lethal injection.

It appears that the state will now be proceeding as scheduled. The governor has said that he would meet privately on December 8 with his attorneys. We don't know if that is going take place, because, now what we are learning is that the State Supreme Court has ruled to continue with the death sentence for "Tookie" Williams.

Now, also California Governor Arnold Schwarzenegger is giving his administration a good shakeup. Late this afternoon, the Republican governor today appointed longtime Democratic activist Susan Kennedy as his new chief of staff. Kennedy currently serves of California's Public Utilities Commission. She replaces Patricia Cleary.

Cleary's ouster was widely expected after all four of the governor's reform measures failed in this month's special election.

And the Federal Drug Enforcement Administration says it has nabbed dozens of people in a Colombian heroin ring. The DEA says they used furniture, clothing and artwork to smuggle heroin into the U.S. The operation resulted in 78 arrest and the seizure of 78 kilograms or 172 pounds of heroin. The year-long effort was dubbed Operation High Step because some of the drugs were found in dancing shoes, of all places -- Wolf.

BLITZER: All right, Fred. Thanks very much.

And we're going to have more later this hour on Stanley "Tookie" Williams. The pressure mounting on the California Governor Arnold Schwarzenegger to make a decision. Will this man live or will he die? Let's go back up to New York, Jack Cafferty standing by once again. Hi, Jack.

JACK CAFFERTY, CNN ANCHOR: Hi. Which way do you think the governator is going to swing?

BLITZER: I don't know. I think the pressure could be mounting, especially in the aftermath of what the Virginia governor did only yesterday.

CAFFERTY: Nobody wants to be the one who pulls the trigger on that 1,000th execution. That might be part of it.

BLITZER: Well, there's going to be one I think next week in North Carolina. That probably will go forward. We'll see.

CAFFERTY: All right. Let's talk about extreme makeovers. I mean, like really extreme makeovers. You might soon be able to ask your doctor for a new face. French doctors -- and I would do that. French doctors announced today that they performed the first partial face transplant. It's seen as a valuable technique for treating people who have disfiguring injuries, but hey, why not take it a step farther?

Think about it. The day might come in the not to distant future, you can walk into a plastic surgeon and get anyone's face you want. Maybe Angelina Jolie's or Elvis'. And there would be new worlds of hope for people like Joan Rivers, who could use it. Is that you laughing, Wolf?

If you could get a face transplant, who's face would you want? That would be the question for this hour. And we'll read some of the silly and ridiculous answers that we expect to get from you people sometime close to 8:00 o'clock -- caffertyfile@CNN.com.

BLITZER: I'm sure you'll get a ton of e-mail, Jack. Thanks very much.

It is though a very, very serious story, and we are going to have a full report on the face transplant story. That's coming up shortly.

Also, bye-bye hurricane season. Key West burns a flag to mark the end of a recordbreaker. We'll take you there live.

Plus, Hillary Rodham Clinton's Iraq troubles. She's a hawk who supports the war, but will that come back to haunt her in 2008? And a little bit later, get this. Chrismahanukwanzakah. Find out why one retail mogul -- that would be Sir Richard Branson -- is wrapping all the holidays together. He'll be joining us here in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Welcome back to THE SITUATION ROOM. It's a medical first. In France, surgeons have performed a facial transplant. Let's get the details, a very important story. CNN's Brian Todd standing by -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, some of the world's top microsurgeons are paying very close attention to this surgery in France to see how the patient comes out of it. This is so far out on the cutting edge of medicine that Hollywood once depicted this surgery in a movie.

(BEGIN VIDEOTAPE)

TODD (voice-over): Until now, it was the stuff of science fiction. Eight years after the movie "Face Off" popularized the notion of swapping faces, doctors in France announced the world's first partial face transplant, replacing the nose, lips and chin of a 38-year-old woman who had been mauled in a dog attack, the grafted tissue harvested from another woman who had been declared brain dead. A procedure that's been researched extensively in the U.S. but not tried yet.

DR. JOHN BARKER, UNIVERSITY OF LOUISVILLE: If a person -- for example, a burn victim, who's -- you know, half of their face is burned, the procedure consists of removing what is burned and replacing it with transplanted tissues.

TODD: Dr. John Barker is director of plastic surgery research at the University of Louisville. His teams want to do a full facial transplant, but they're not as close as Dr. Maria Simino (ph) of the Cleveland Clinic. She heads the only team to have board approval for a complete facial transplant, and she's now screening potential patients.

Neither Dr. Simino nor the doctors at Louisville would comment on the operation in France, but officials at the Cleveland Clinic tell CNN, "When a full facial transplant is done, an incision will be made around the entire face. The skin flap will be lifted and replaced with another face."

They say initially they only plan on transplanting skin, not facial bones or muscles. And they only want to perform the surgery on patients who are burned or otherwise severely disfigured.

(END VIDEOTAPE)

TODD: In other words, officials at the Cleveland Clinic say they never want to see a facial transplant done as elective surgery for someone who simply wants another face. Even in someone tries that, they warn you will not look like your donor -- Wolf.

BLITZER: Brian Todd reporting for us. Brian, thank you very much.

The end of the Atlanta hurricane season can be summed up in two words: good riddance. Today is the last official day of the record- breaking season. They are kissing it goodbye in traditional style in Key West, Florida. That's where we find our John Zarrella. He's standing by. John, how did it go?

JOHN ZARRELLA, CNN CORRESPONDENT: Boy, Wolf, that's for sure. And you're right. Less than five hours, thankfully, to the end of the 2005 hurricane season. Good riddance, as you said.

Here in Key West, they marked the end of the season here at the Pier House with commemorating a memorial to the people who perished during the season. And they did that by blowing a ceremonial conch shell.

After they blew that conch shell, then, they attempted to light two hurricane flags, those hurricane warning flags. Well, hurricane season didn't want to go away lightly or easily. It's windy. It's cool here. They couldn't get those flags lit right away. Eventually, they managed to get those flags lit, and the celebration continued here, marking the end of the season.

It was a brutal season for sure, 26 named storms. Four major hurricanes made landfall in the United States, and all four of those major hurricanes in one way or another impacted the Florida Keys. Hurricane Wilma, October 24th, certainly the worst.

And in all, wolf, 1,500 people perished, $56 billion in insured losses from the hurricanes this year. A very bad year, and the experts are saying we can expect more of these kinds of seasons in the future, unfortunately -- Wolf.

BLITZER: What a horrible thought that is. John, thanks very much. John Zarrella reporting for us.

Still to come here in THE SITUATION ROOM, the president's plan outlined in a major speech. We'll take a closer look at what he's saying and what his critics are saying.

Plus, the best of all the holidays rolled up into one. It's called Chrismahanukwanzakah. Yes, it is. I'll talk to the man behind it, Sir Richard Branson. He'll join us here in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Let's check in with CNN's Anderson Cooper for a preview of what's coming up on his program later tonight. Hi, Anderson.

ANDERSON COOPER, CNN ANCHOR: Hey, Wolf. At 10:00 tonight, another outrage in New Orleans. If you can believe this, it has been more than three months and still, there been no DNA testing of the dead. The money is there. Three weeks ago they'd told us they'd start the starting. They haven't. More than 150 of our fellow citizens still lying in a morgue, unidentified. Their families left waiting and waiting and waiting, all because some bureaucrats can't get their act together. We'll investigate tonight.

Also, we're looking into the Church of Scientology. Tom Cruise again lashing out against anti-depressants, saying "thanks to him, nearly half a million kids have stopped taking psychiatric drugs. Tonight we're going to investigate the Church of Scientology and their battle with psychiatry. That's at 10:00, Wolf.

BLITZER: All right, sounds good. Anderson, thanks very much. "ANDERSON COOPER 360" airs 10 p.m. Eastern, later tonight.

Let's go back to CNN Center in Atlanta. Fredricka Whitfield standing by with a closer look at other stories making news around the world. Hi, Fred.

WHITFIELD: Hello again, Wolf. The battle for the hearts and minds of the Iraqi people is being fought in the country's newspapers. But "The Los Angeles Times" is reporting that U.S. military has secretly paid those papers to run pro-American articles written by a special U.S. military unit. A military spokesman would not comment on that report.

And after decades as a pillar of Israel's labor party, former Israeli Prime Minister, Shimon Peres has resigned. He did so at a news conference today. Peres also endorsed his former political rival, Ariel Sharon, in the upcoming race for prime minister. Sharon last week announced he'd leave the Likud party to form a new party, whose goal is a peace pact with the Palestinians.

And a couple of naked men in El Salvador got busted building a tunnel into a bank vault. They got caught when a portion of the tunnel collapsed. Why no clothes, you ask? Well, it gets kind of hot when you're underground burying your way into a bank. And so Wolf, I suppose not only attempted burglary charges, or bank robbery charges, but perhaps they're facing a charge of indecent exposure?

BLITZER: You know, you can't make this kind of stuff up, Fred. Thanks very much. We'll check back with you shortly.

Just ahead, the president's speech on the war in Iraq. We're going to get two points of view from former Democratic Senator Gary Hart and former Assistant Defense Secretary Richard Perle. They're both standing by. They're joining us in THE SITUATION ROOM.

Plus, she supported going to war. So, what's Senator Hillary Rodham Clinton saying now about the situation in Iraq, as she eyes a potential White House bid? You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: There's a developing story we've been following over the past half hour or so. "The Associated Press" reporting that the California Supreme Court has refused to halt the scheduled execution of convicted killer Stanley "Tookie" Williams, the Crips gang founder who became an anti-gang activist while in prison, and was nominated actually, for a Nobel Peace Prize. Our Chris Lawrence is standing by in Los Angeles. He's got specific details. Chris?

Well, I guess we're having some troubles getting Chris. Chris, can you hear me?

CHRIS LAWRENCE, CNN CORRESPONDENT (on phone): Hello?

BLITZER: Chris, I don't think you hear me.

LAWRENCE: Well Wolf, right now, what we're hearing is that the California Supreme Court has denied a last-ditch appeal by Stanley "Tookie" Williams' lawyers to block his execution.

The justices voted 4-2 to block that execution. They didn't comment. But basically, what Williams' attorneys were asking them to do was to take another look at some of the forensic evidence. They called it shotty forensic evidence, bad science.

It all related back to a shotgun that was registered to Stanley Williams, back in 1979. That shotgun was used to kill three people during a robbery, a motel robbery here in California that same year.

Williams was convicted of those three murders, he was also convicted of murdering a convenience store clerk during a separate robbery at that point. His lawyers were really kicking the stance of this science was bad, the forensic evidence was bad. That's a different argument than what people here at this event that I'm at right now, are making. This is a "Read for Stanley Williams" event. They brought about 100, 200 kids in. They're going to be reading them the books of Stanley Williams, trying to convince them to stay out of gangs, to stay out the street life. Actor Jamie Foxx is scheduled to appear, rapper Snoop Dogg.

We spoke briefly with actress Alfre Woodard, and what they're making is the argument of redemption, that Williams', since he's been in prison, has tired to redeem himself by convincing children to stay out of gangs and that he is more valuable alive than dead. A lot of people will say, they will point to the murders and say Williams was never truly admitted to his crimes or shown remorse for them, and therefore does not deserve a stay of execution.

BLITZER: Chris Lawrence, we've got to leave it right there. Chris Lawrence, reporting for us. It's apparently now going to be up to the governor, Arnold Schwarzenegger to decide whether Stanley "Tookie" Williams lives or dies. He is scheduled to be executed within two weeks, or so, December 13th.

Meanwhile, let's get back to our top story. The White House trying to get a fresh start in persuading Americans to rally behind the Iraq policy of this administration. But the president has been talking about Iraq now for months. By our count, he's given at least seven other major speeches on Iraq this year, and that hasn't help his poll numbers.

(BEGIN VIDEOTAPE) GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Today the people of Iraq have spoken to the world. And the world is hearing the voice of freedom.

BLITZER (voice-over): His January 30th speech congratulating Iraqis on their elections marked a high point for the president this year. His approval rating soon after stood at 57 percent. But it was downhill from there.

May 27th -- Mr. Bush gives the commencement address at the U.S. Naval Academy. By early June, his approval rating was down to 47 percent. June 28th at Fort Bragg, North Carolina.

BUSH: We will defend our freedom. We will take the fight to the enemy.

BLITZER: The president marks the one-year anniversary of Iraqi sovereignty, and an overnight poll showed the speech didn't help much. His approval rating at 46 percent.

UNIDENTIFIED MALE: President George W. Bush.

BLITZER: October 6th, a major speech on Iraq and the war on terror in Washington. Soon after, his poll numbers hit a new low point of 39 percent.

This month, Mr. Bush had given two speeches on Iraq and pre-war intelligence even before today's address. By mid-November, his approval rating had dipped even further, to 37 percent.

(END VIDEOTAPE)

BLITZER: And another measure of public opinion. In February of this year, nearly half of those surveyed said was worth going to war in Iraq. Two weeks ago, a little more than a third said it was worth it.

Stay with CNN, by the way, for a new survey on Iraq that's going to be released later tonight. Let's get some more now on the president's speech.

Joining us in THE SITUATION ROOM, two guests, two men of opposite sides of the political spectrum. The former Democratic Senator Gary Hart, former presidential candidate himself and Richard Perle, a former assistant secretary of defense in the Reagan Administration.

Senator Hart, did the president convince you today with his remarks that the United States must stay in Iraq and get the job done?

GARY HART, (D), FORMER U.S. SENATOR: Well, we have turned a serious corner in this country in the past 90 days. The debate now isn't whether to stay or leave. The debate now is how soon to leave.

The president, I think, is clearly, and his party have come to the position that America must withdraw. It's only going to be a question of how and when, and not whether. The only nuance in this speech and position paper that I could find was, the beginning of more sophisticated analysis of who are attacking us.

Up to now, they've all been terrorists and they've all been part of the war on terrorism, when in fact, the experts say a good 90 percent of the insurgents who are attacking us are nationalists. They don't want the jihadist in their country, they simply want us to leave. And with that recognition, I think that's an important step.

BLITZER: Richard, you've been critical of the administration somewhat, not on the substance, but on their packaging of their presentation, of their case. Did the president do a good job today?

RICHARD PERLE, RESIDENT FELLOW, AMERICAN ENTERPRISE INSTITUTE: I think it was a very good speech. It was clear, it was moving. He made the point, which he should have made, that our soldiers, who are in Iraq today, and even more, those who lost their lives there, are owed something by this nation, and that is to stay there until we have finished this job.

And, it is always been the case that we would leave Iraq when the work was finished. The debate is will we leave it before. And the president is clearly, unambiguously said no, we will not leave Iraq until we have accomplished our objectives.

BLITZER: Well how long, Richard, is it going to take to get these Iraqi troops really to take charge, to provide their own security? It's been two and a half years, $200 billion, and one battalion of about 700 or so Iraqi troops can operate on their own, without U.S. assistance.

PERLE: Well, I think that's a slightly misleading characterization because it employs a definition that isn't terribly relevant to the situation.

BLITZER: But it's a definition that the U.S. military itself has come up with.

PERLE: Yes, but it's not the right definition for Iraq. Of course the Iraqis need our assistance. They don't have the logistics, they don't have the intelligence apparatus, they don't have the firepower.

But increasingly, as the president said in his speech, the Iraqis are taking the forward positions. The Iraqis are in the front lines, and many battalions are proving themselves in battles. It's getting better all the time.

BLITZER: What do you say -- you're shaking your head, Senator Hart.

HART: Well, these vague references to getting the job done. I mean, this was the problem with the speech and with the rhetoric throughout. It's all been stay the course and get the job done. This is a complex country. I think anybody that studied at all knows that. The violence will go down as American troops are withdrawn.

There will still be violence, but there will be strong impetus on the part of the Kurds and the Shias, and other -- and even many of the Sunnis, to get the jihadists out of there -- will continue our fight against radical Islamic jihadism, whose center is not in the Middle East or in Iraq, by the way, but in Europe. And we'll need all the help we can get. But to stay, as the president does, that this is the center of the war on terrorism, is just false.

BLITZER: Is that false? Has Iraq, Richard, become, in the president's word, "the central front in the war against humanity?"

PERLE: Yes, I believe it has. And it certainly has in the sense that if we were to leave Iraq, and leave chaos behind, that would be such an enormous victory for the jihadists, for the holy warriors, for the terrorists, that we would be paying for that with American lives for a very long time to come.

It would be widely irresponsible and by the way, I don't accept that the Americans are the principle target of these attacks. And the statistics show otherwise. Most of the victims of violence in Iraq today are other Iraqis, not American forces.

BLITZER: Well, why is Richard wrong, in your opinion, Senator Hart?

HART: Well the fact of the matter is, we did kick open a hornet's nest. Now, we are being told until all the hornets are back in the nest, we can't leave. I think if you look at the British experience -- we learned nothing from the French in Vietnam and we learned nothing from the British in Iraq.

If you look at the British experience, or indeed any imperial or colonial power fighting an insurgency, it goes on for decade after decade, after decade, and ultimately, the occupier leaves.

So when this job is finished is anyone's definition. I think one of the ways to determine what our long-range intentions are, to find out if we're building permanent military bases there. I think those, including Mr. Perle, who favored the unprovoked invasion, had in mind that there would be a long-term American military presence in Iraq to influence the region. And the question is, is that in fact our strategy long-term? I don't know the answer to that.

BLITZER: Richard, what's the answer?

PERLE: Well, look, I think it's dead wrong to refer to the United States Army assisting the Iraqis, who have now had two elections, adopted a constitution, and are about to elect a new government on December 5th, to refer to our assistance to them as imperial. It's nothing of the sort. And to compare it to the colonialism of the last century and early in this century is ridiculous.

HART: Well, tell that to the Iraqis, who think that we are the new colonialists, whether we think so or not.

PERLE: Well, I don't believe most Iraqis do think that, as a matter of fact. And while there are some who denounce us as colonialists, they would, wouldn't they, since they want us out. Some way us out, there's no doubt about that. But the majority of Iraqis, the Shia, the Kurds certainly, and many of the Sunni are glad we are there, giving them a chance to construct a decent society.

BLITZER: We have to -- gentlemen, unfortunately we have to leave it right there, but I'm sure there will be plenty to debate down the road. Senator Hart, thanks very much. Richard Perle, thanks to you as well. A good discussion on an important day here in Washington.

Up next, the billionaire Richard Branson known for getting attention, but he says his latest pet project is no stunt at all. Chrismahanukwanzakah. Let me say it again, chrismahanukwanzakah. That's it. Branson says it's more than just a catchy phrase. Easy for me to say.

And Hillary versus Hillary. Is the senator at odds with her past and her present comments about the Iraq war? Stay with us.

(COMMERCIAL BREAK)

BLITZER: Well, as Christians celebrate Christmas, for Jews it's Chanukah, many African-Americans observe Kwanzaa. But what if there were one holiday to observe all of those observances and even more.

The billionaire Sir Richard Branson wants one such holiday, and he's calling it Chrismahanukwanzakah. Today, I asked Sir Richard Branson what that means.

(BEGIN VIDEOTAPE)

BLITZER: Sir Richard, thanks for joining us. I see that sign behind you, with those long letters out there, what's going on? Is this political correctness run amuck?

RICHARD BRANSON, CHAIRMAN, VIRGIN GROUP: No. We just are having a fun day, where on the 13th of December, we're having a new day for all religions, where they can celebrate happy chrismahanukwanzakah. Which is basically a day where Jews, Christians, Muslims cans all celebrate their holiday together. So, slightly tongue-in-cheek.

BLITZER: Is it a Christmas tree or holiday tree from your perspective?

BRANSON: It's a holiday tree. But it's a special tree, where, instead of Christians all waiting until December 25th and having their celebrations on their own, and Jews have their celebrations on their own. There's just going to be one day a year for everyone to celebrate together.

It doesn't matter what creed, what religion you are. And, you know, you never know. It might catch on.

BLITZER: As you know, here in Washington, only the other day, the speaker of the House of Representatives decided the tree on Capitol Hill was no longer going to be called the holiday tree, it was a Christmas tree, because, after all that is what it is. A Christmas tree.

You understand this political sensitivity that's going on here in the United States right now on these issues.

BRANSON: I do. But if we can actually create a day for everybody, where everybody can, you know, everybody can celebrate and not be embarrassed about saying it.

The only problem is I can't pronounce it. We've come up with this very complicated name for it. But then, maybe you can overcome it. But obviously, people must carry on celebrating their own particular Christmas days or other religious days. And they should be happy and proud to say it. I don't think people should be too precious about their own days they are celebrating.

Chrismahanukwanzakah. That's the way I've heard it pronounced. Is that right?

BRANSON: Wolf, I'm dyslexic so I can't even say my own name for my special day. But you've got it bang on right.

BLITZER: We have to leave it right there, Sir Richard. I'll leave it with a Merry Chrismahanukwanzakah. Is that an appropriate expression this time of the year?

BRANSON: Well done. Thanks, Wolf.

(END VIDEOTAPE)

BLITZER: And the online music swapping controversy has finally caught up with Grateful Dead fans. A number of live recordings of the band had been online, but not anymore. Our Internet reporter Jacki Schechner is standing by with more. What's going on, Jacki?.

JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, it's really a story of old school meets new school. Essentially, Grateful Dead fans had been swapping music for years. It's part of the tradition.

Once the Internet came into play they started swapping music online. One of the sites that was very popular for this was an Internet library called archive.org.

Not too long ago, a little note went up that said that those recordings from The Grateful Dead were not going to be available anymore. Not just the official recordings but the ones that fans taped themselves at shows. This caused a tremendous amount of outrage online. Three petitions. More than 6,000 signatures of people really upset with Grateful Dead Merchandising, that's the company that made this decision.

Well, we spoke to them today, and for their part, what they say, there's a bit of misunderstanding. That the audience files they expect at some point to come back online for download. You can get them just streaming right now, but you can't actually download them.

They are not sure what they are going to do with the official recordings. Now this is a business decision, and that's about the information they can give us at this point. This is an evolving online story. There's a tremendous amount of discussion.

But what I will say is that The Grateful Dead fans will not be deterred. You can do a Google search for tape swapping for Dead fans, and it will bring up sites where people trade tapes. Wolf?.

BLITZER: Deadheads will never be dead. Thanks very much for that. Let's check in with CNN's Paula Zahn. She's standing by in New York with a little preview of what she's working on. Paula?

PAULA ZAHN, CNN ANCHOR: Hi, Wolf. You're looking at your watches now, and in just about 12 minutes, I will have an exclusive on the president's Iraq policy speech. Democratic Senator Joe Biden tells me he actually heard the president say some startling things. But he also has some things to say to the president. He sounds off later tonight.

Plus, we will watch as hidden cameras capture a crime that has reached epidemic proportions all over the country. You're going to be astonished at what thieves are actually ripping off from construction sites. As blatantly as these guys did. And guess what? It's costing all of us a bundle. Please join me at the top of the hour.

BLITZER: We certainly will, Paula. Thanks very much. "PAULA ZAHN NOW" airs at the top of the hour.

Up next, it's a fine line to walk. How to defend your vote for the Iraq war while not alienating your anti-war supporters. We'll talk about Senator Hillary Rodham Clinton's dilemma. Our Deborah Feyerick has been looking into that. She's standing by, right here in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Many Democrats were quick to pounce after President Bush's Iraq speech today. But Senator Hillary Clinton launched a preemptive strike.

CNN's Deborah Feyerick is here from New York. She is in THE SITUATION ROOM. She has been watching this story. Hi Deborah.

DEBORAH FEYERICK, CNN CORRESPONDENT: Hey, Wolf. Well, listen. Like many Democrats, Hillary Rodham Clinton is walking a fine line on Iraq. Of course, when it comes to name recognition and political clout, she is different. She's not like any other member of her party.

(BEGIN VIDEOTAPE)

SEN. HILLARY CLINTON (D), NEW YORK: Any vote that might lead to war should be hard, but I cast it with conviction.

FEYERICK (voice-over): That was then. Senator Hillary Clinton voting to authorize the war in Iraq, positioning herself as a pro- military Democrat. This is now. Senator Clinton, a likely White House contender, defending her vote but also trying to keep the pressure on a president politically weakened by the war.

CLINTON: They are not willing to look at the facts and the evidence. And that as not good for us and it's not good for our brave men and women who serve us.

FEYERICK: In a letter to supporters, Senator Clinton says, quote, "I take responsibility for my vote. And I, along with a majority of Americans, except the president and his administration to take responsibility for the false assurances, faulty evidence and mismanagement of the war."

She straddled a similar line in a CNN interview last year.

CLINTON: No, I don't regret giving the president authority because at the time, it was in the context of weapons of mass destruction, grave threats to the United States, and, clearly, Saddam Hussein had been a real problem.

FEYERICK: Senator Clinton isn't the only Democrat with the I voted for the war dilemma that keeps them from pouncing quite as hard as their anti-war colleagues. John Kerry tried to finesse the issue in 2004. He failed to win the White House.

(END VIDEOTAPE)

FEYERICK: Clinton and other presidential prospects are in a race to find the right balance on Iraq before the possible showdown for the Democratic nomination -- Wolf.

BLITZER: It's going to be exciting to watch all of these balancing acts unfold. Deb Feyerick, thanks very much for joining us.

Let's go back up to New York right now. Ali Velshi is standing by in THE SITUATION ROOM with the "Bottom Line" on home prices. Ali, is a bubble going to be bursting? What's going on.

ALI VELSHI, CNN ANCHOR: Well, Wolf, whether or not, Wolf, there ever was a bubble is actually a matter of perspective. The issue that people are asking is, are house pricing actually falling in the United States?

The answer is undecided. In some markets they are. Across the board, they are not. Now in October -- we talked about this yesterday -- the latest month for which we have statistics the price of the average single family home in the United States was up $218,000. It's up a little less than one percent over the previous year.

Now, what about the future? Some say house prices will fall, some say they'll stay the same, some say they will strengthen. What most people agree on is that the huge price increases that we've been looking for the past few years are done.

So, what do you do about it? If you are in the market for a house, you are probably going to benefit from the lower prices or at least prices that aren't rising as fast as you've been used to in the last few years. If you are selling a house, you might get a little less than you would have gotten a year ago, but you'll probably pay less for the place you are moving into. Now, if you took out a big mortgage or you refinanced once you found out how valuable your home actually was, now, you might have a problem, particularly if your mortgage has grown to be worth more than your house.

But if you are not buying or selling or particularly worried about your mortgage, then don't worry about the price of your house. Because for all of the conflicting headlines, it's probably still the most stable investment you've got. And you have got to live somewhere.

Now, if that somewhere happens to be Manhattan, we are now looking at $430 a square foot, Wolf, for air. Let me just tell you this story. Park Avenue and East 60th -- some developers have paid $430 a square foot for the air rights above this club that you're looking at -- the Grollier (ph) Club and Christ Church, a total of about $37 million to buy that, to build in that air space above the buildings, Wolf.

BLITZER: That's expensive air. Ali, thanks very much. See you tomorrow.

Still ahead, some change their hair, others change their clothes, but what if you could change your face? It's an extreme makeover indeed. Whose would you choose? Jack Cafferty is going through your e-mails. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Let's go right back to New York and Jack Cafferty -- Jack.

CAFFERTY: Thanks, Wolf. A little fun with a serious story. French doctors announced today they performed the first partial face transplant. The question we took some license with is if you could get a face transplant, whose face would you want?

Roy in Ft. Hadlock, Washington: "My own, 30 years ago. And could I get my 22-year-old body back too? I promise I'll take better care of it this time."

Rob in Scottsdale, Arizona: "I'd go for Mikhail Gorbachev's face, minus the birthmark, with Bart Simpson's nose."

Dave in Menominee, Michigan: "The late composer Frank Zappa. There was something about that moustache and that cool little piece of hair on his chin."

Donna in Buffalo, New York: "I want Mrs. Potato Head's face. I'm on the poor side. With Mrs. Potato Head, I'd only have to go to the surgeon once. After that, I could change the parts around myself."

Reno, in the Nassau, in the Bahamas: "I want Bob Marley's face. And can I get his hair, too?"

Richard in Salt Lake City: "I'd go for Wolf Blitzer's face. Then I could fly to Washington and pick up groupies in the bars there by telling them I am the Wolfman."

And Ian in Providence, Rhode Island: "Give me Anderson Cooper's face for job interviews, Brad Pitt's face for hitting the bars, and Jack Cafferty's face for scaring the dogs out from under my house."

BLITZER: Richard is writing us from Salt Lake City in Utah. They are not supposed to even be thinking about that stuff out there, are they, Jack?

CAFFERTY: I don't think they have bars out there, do they?

BLITZER: I don't know.

CAFFERTY: What is that picture of that -- what is that thing below ...

BLITZER: That's a face transplant.

CAFFERTY: That's a terrible graphic. That's a graphic that was done by the same person who decided on that awful music they run on this program.

BLITZER: No, the music is good. I like the music. See you tomorrow.

Thanks very much. Don't forget, we're in THE SITUATION ROOM weekdays 4:00 to 6:00 p.m. Eastern and 7:00 p.m. Eastern. Paula Zahn, standing by in New York to take over -- Paula.

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