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American Morning

Defending the War; Iraqi Reaction; Cheney in Afghanistan; Spending Deals; Sharon Stroke

Aired December 19, 2005 - 06:00   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning, welcome. Happy Monday, I'm Soledad O'Brien.
RICK SANCHEZ, CNN ANCHOR: And I'm Rick Sanchez filling in for Miles.

So nice to be with you here once again.

O'BRIEN: Thank you very much. It's always nice to have you.

Today, President Bush strikes a new tone in his prime time address on Iraq.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The work in Iraq has been especially difficult. More difficult than we expected.

(END VIDEO CLIP)

O'BRIEN: Pretty candid remarks isn't going to change opinions. We'll take a look at that this morning.

Vice President Dick Cheney in Afghanistan this morning after a surprise visit to U.S. troops in Iraq. Details of his secret trip to the war zone just ahead.

SANCHEZ: Congress pulls an all-nighter trying to tie up some loose ends before the holidays. But not so fast, at least one controversial amendment threatens to shut down the Senate.

More medical tests this morning for Israeli Prime Minister Ariel Sharon after suffering a stroke this weekend. We're going to have a live report from Jerusalem. That's coming up in just a little bit.

Also, a man suspected of posing as a New York City firefighter during a sexual assault is finally captured after weeks on the run. We're going to have details on his arrest in just a little bit.

O'BRIEN: He had been on the run since Halloween. And we're going to get to that in just a moment.

First, though, a different tone for President Bush, admitting mistakes in the Oval Office address on Sunday night, even allowing for some criticism. He insists there is progress in Iraq, and he is not giving an inch on his decision to go to war. White House correspondent Suzanne Malveaux has more for us this morning.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (on camera): President Bush struck a conciliatory tone in his Oval Office address to the nation. The president acknowledging that there were no weapons of mass destruction found in Iraq and that much of the intelligence leading up to the U.S. invasion of Iraq was in fact wrong.

But the president insisted his decision to go to war was right and that Iraqi elections will set the stage for democracy in the Middle East.

(BEGIN VIDEO CLIP)

BUSH: Some look at the challenges in Iraq and conclude that the war is lost and not worth another dime or another day. I don't believe that.

(END VIDEO CLIP)

MALVEAUX: The president presented his administration's strategy for success to allow U.S. troops to eventually draw down but refused again to say when.

(BEGIN VIDEO CLIP)

BUSH: I will make decisions on troop levels based on the progress we see on the ground and the advice of our military leaders, not based on artificial timetables set by politicians in Washington.

(END VIDEO CLIP)

MALVEAUX: The president specifically addressed his critics and skeptical Americans.

(BEGIN VIDEO CLIP)

BUSH: I don't expect you to support everything I do, but tonight I have a request, do not give into despair and do not give up on this fight for freedom.

(END VIDEO CLIP)

MALVEAUX: The president will continue to deliver that message during the holiday week, as well as emphasize a renewed willingness to listen to his critics.

Suzanne Malveaux, CNN, the White House.

(END VIDEOTAPE)

O'BRIEN: And in fact, the president's strongest critics are saying the speech doesn't paint a true picture of Iraq. Democratic Senator Joe Biden talked to Larry King right after the speech.

(BEGIN VIDEO CLIP)

SEN. JOSEPH BIDEN (D), DELAWARE: So, he has made some progress. But the notion that this is remarkable, you would not hear the -- our ambassador say that. You would not hear General Casey say that. You would not hear anybody on the ground there say that. We are making some progress. We've made some monumental mistakes, we're correcting them now. We must continue over the next six months to get it right.

But, Larry, the question here is are we going trade a dictator for chaos? Are we going to trade a dictator for stability? And if we end up with a Shia-dominated state, that is an Iranian style, is anybody going to call that progress? The jury is still out on that, and we can affect it.

(END VIDEO CLIP)

O'BRIEN: "LARRY KING LIVE" on every weeknight, 9:00 p.m. Eastern Time.

And coming up in the next hour, we're going to talk with Democratic Senator Jack Reed of Rhode Island about Iraq and the president's speech as well -- Rick.

SANCHEZ: Let's get to the very place everyone is talking about now, Iraq, and reaction to the president's speech there.

Aneesh Raman is live in Baghdad for us.

Aneesh, the president says that last week's election won't end the violence. What's the feeling there among the people living in that country?

ANEESH RAMAN, CNN INTERNATIONAL CORRESPONDENT: Well, Rick, as you know, millions of Iraqis went to the polls on Thursday. They have put faith in this new government. And the first task of the new prime minister will be to not lose that faith, to build upon the momentum.

Iraqis have very real and basic concerns that they want dealt with immediately. Security, of course, is the biggest, but also basic services. They want electricity and water guaranteed. They want economic development. The two previous governments had inherently been lame duck. This one has four years to try and remedy the situation on the ground.

So there are huge tasks at hand for the new government that's coming into power next year. Huge possibilities for it to push this country forward, but also huge possibilities for pitfalls. In terms of political arena, a constitution yet not decided, and in terms of how they deliver to the Iraqi people -- Rick.

SANCHEZ: Something I think a lot of people have been focusing here in the States as well and that is the Iraqi security forces and how well they have or have not been trained. The president pretty much said so much last night that we really haven't made a lot of progress in that area. What's the reality there?

RAMAN: Well two things to keep in mind when we talk about Iraqi security forces, especially in the next year. The first is that they are currently uneven. Parts of the Iraqi security forces are able to go off, conduct independent operation. Other parts are literally just beginning their training in live fire exercises with the U.S. military. So next year that disparity will have to be evened out.

The other thing is there are very real concerns on the ground that Shia-backed militias have infiltrated into Iraq's security forces. That adds to a sectarian Shia angle to the government, something that is not good when we try to bring Sunni politicians into the political fray.

So those two things will have to be dealt with next year -- Rick.

SANCHEZ: Aneesh Raman, thanks so much, my friend, for joining us. And we'll be talking to you a little bit later.

Soledad, over to you.

O'BRIEN: To Afghanistan now where the first democratically elected Parliament in more than 30 years convened today. Vice President Dick Cheney attended the opening session during his trip to the Mid East and Asia, too.

CNN's Dana Bash is traveling with the vice president and has more on this historic day.

(BEGIN VIDEOTAPE)

DANA BASH, CNN WHITE HOUSE CORRESPONDENT (on camera): While President Bush is attending to the American people for patience in Iraq because of the promise of democracy, Vice President Cheney came here to Kabul to witness what the White House considers an extraordinary symbol of political promise and political progress, and that is the opening session of Afghanistan's newly elected National Assembly.

Mr. Cheney sat among some 350 Assembly members, including many who represent factions who were warring for decades, and nearly 100 women who under the Taliban would have not even been able to come into the session, into the building at all.

Now, despite the political milestone in this National Assembly, Afghanistan is of course still quite a dangerous place. And the vice president landed his helicopter amid blinding dust right outside the Parliament building and was whisked inside.

Vice President Cheney is also addressing U.S. troops here in Afghanistan serving at Bagram Air Base. An aide to Cheney says that he understands much of the focus has been on U.S. troops serving in Iraq. And he wants to make clear to the military serving here in Afghanistan their service is appreciated as well. Dana Bash, CNN, Kabul, Afghanistan.

(END VIDEOTAPE)

SANCHEZ: And of course we apologize for some of the audio glitches there, the fact that she was trying to get that report to us, Dana Bash was, right away.

Meanwhile on Capitol Hill, plenty of unfinished business before lawmakers head home for the holidays. Still ahead, a showdown possibly today over attempts to link oil drilling in Alaska to defense spending. An update on the budge debate now from congressional correspondent Ed Henry.

(BEGIN VIDEOTAPE)

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT (on camera): Republican leaders have struck a deal on the federal budget, agreeing to $42 billion in spending cuts, paving the way for Congress to finally get home for the holidays in the next few days.

Democrats complain that the cuts will hit Medicaid, the federal health program for the poor, particularly hard. Republicans say there is no easy way to cut the deficit.

The Senate is headed for an even nastier showdown as early as today as Republicans add a provision to the defense bill that will open the Arctic National Wildlife Refuge to oil and gas exploration. Senate Democratic Leader Harry Reid charges that the Republicans will hurt the environment through legislative slight of hand. Republican Leader Bill Frist insists that's nonsense.

Ed Henry, CNN, Capitol Hill.

(END VIDEOTAPE)

O'BRIEN: Let's get to Israel now where doctors are planning a series of tests today on Prime Minister Ariel Sharon after he had a mild stroke on Sunday. The 77-year-old Sharon said to be in good condition and is even holding meetings.

CNN's John Vause is live for us in Jerusalem this morning.

John, good morning.

JOHN VAUSE, CNN CORRESPONDENT: Good morning, Soledad.

Doctors here say those tests are fairly routine. They include a CAT scan, as well as an MRI. We are expecting a statement from the head of neurology here at Hadassah Hospital. It should give us more of an indication of the prime minister's condition, his prognosis and when he will be discharged.

But the aides to the prime minister say that he is still in charge of this country. He is running the affairs of state from his bed. He has met with his military attache. He has been briefed by his government secretary.

Doctors said he had a restful night's sleep. That he is now up and about and he is joking and laughing with all those around him -- Soledad.

O'BRIEN: What was the reaction when people first got word sort of on the ground about his condition?

VAUSE: Well those -- first of all, those -- reaction around the world, a lot of world leaders called in expressing concern. There was obviously the concern among Israelis. There were telephone calls from U.S. President George W. Bush and also from the Palestinian Authority President Mahmoud Abbas.

But in Gaza, a very different reaction. Palestinians took to the streets, handing out candy, chanting death to Ariel Sharon. And there was celebratory gunfire as they found out about the ill health of the Israeli prime minister -- Soledad.

O'BRIEN: John Vause with an update for us.

John, thank you. We'll check in with you, obviously, throughout the day and throughout the morning as well --Rick.

SANCHEZ: A lot of people up early this morning as they're getting ready to go out and do a lot of shopping. And they need to know what kind of weather they're going to have out there to get from the parking lot inside the mall.

Bonnie Schneider standing by. She's filling in for Jacqui.

What you got for us -- Bonnie?

BONNIE SCHNEIDER, CNN METEOROLOGIST: Well, Rick, we've got some cool temperatures.

(WEATHER REPORT)

SANCHEZ: Bonnie Schneider, we thank you for bringing us up to date on that. And I'm ready to go.

O'BRIEN: Thanks, Bonnie.

SANCHEZ: Ready to go buy your gift.

O'BRIEN: You're just lying, but you're very sweet.

Still to come this morning, "TIME" magazine reveals its person/persons this year of the year. This year, three of them mixing charity and computers and a little rock 'n' roll, too. We've got that just ahead.

SANCHEZ: And who could we be talking about.

And then hold on to your wallet, gas prices, they're on the move again. O'BRIEN: No.

And more on the president's speech on Iraq, did admitting mistakes help sway any of the president's critics? We're going to take a look at that just ahead as we continue right here on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Well a little U2 music right there, of course. It's because the lead singer, Bono, had a pretty big year. Biggest accomplishment may have been getting debt relief for African nations through those Live Aid concerts back in July. And it is that good samaritan spirit that lands him right on the cover of the new "TIME" magazine. Bono, in fact, joins Bill and Melinda Gates as "TIME's" persons of the year.

(BEGIN VIDEO CLIP)

BONO, "TIME" PERSON OF THE YEAR: I'm experiencing an unusual feeling, I think it's called being humbled. You know, in thinking about it, there's a lot of people that could be here. Or what's really key is you know all of us are in an agreement that this can be a generation that can end extreme poverty. And by that we mean kind of you know stupid, daft poverty where it's really a thousand kids are dying every day of a mosquito bite in Africa, you know, malaria. We can fix stuff like that and that's what makes -- that's the feeling that I'm having right now.

(END VIDEO CLIP)

O'BRIEN: The Irish rocker made debt relief kind of sexy and cool. And Bill and Melinda Gates gave away more money in this year than anybody else ever has.

SANCHEZ: You know the thing about Bono is they say he's a bit of a deal cutting, just knows how to get things done for the poor.

O'BRIEN: Yes, he sure worked it this year.

SANCHEZ: Yes.

O'BRIEN: Good for them. Congratulations to them.

And coming up in our next hour, we've got much more on the choice with "TIME" magazine's deputy managing editor. That's ahead.

SANCHEZ: Carol Costello is joining us now to find out what's going on, news other than Bono, we should say.

CAROL COSTELLO, CNN ANCHOR: Yes, bad news, unfortunately.

Good morning, Rick, and good morning to all of you.

Monday morning is off to a deadly start in Baghdad. A car bomb exploded outside of a children's hospital wounding a Baghdad area police chief and seven others with him. At least two civilians were killed in this attack.

Did you hear President Bush's appeal to Americans last night, do not give up the fight he says. He's talking about Iraq, of course. And after last week's parliamentary elections, the president says Iraqis are realizing just how important it is to have a democracy.

(BEGIN VIDEO CLIP)

BUSH: Iraqis of every background are recognizing that democracy is the future of the country they love. And they want their voices heard. One Iraqi, after dipping his finger in the purple ink as he cast his ballot, stuck his finger in the air and said this is a thorn in the eyes of the terrorists. Another voter was asked are you Sunni or Shia? And he responded I am Iraqi.

(END VIDEO CLIP)

COSTELLO: President Bush also said U.S. forces were making steady gains in the nearly 3-year-old war.

Another democracy in the making in that region of the world, today marks a milestone in Afghanistan. The first democratically elected Parliament there in more than 30 years is meeting in Kabul. Women also make up parts of Afghanistan's National Assembly.

Here in this country, in Memphis, Tennessee, a man accused of sexual assault while posing as a firefighter is due in court today. Forty-one-year-old Peter Braunstein was released to Memphis police after stabbing himself during his arrest. He faces arraignment and extradition to New York today. New York police believe Braunstein impersonated a firefighter to get into his victim's New York City apartment on Halloween night. Later, we'll hear from the police officer who first confronted Braunstein in Memphis.

And here we go again. Things could get dicey in New York City this week. Everybody watching those transit talks. Weekend bargaining sessions between the Transit Authority and the union went absolutely nowhere. The union has set a new strike deadline for late tonight, 12:01 a.m. Eastern. This is the last week of holiday shopping. A transit strike would not be good for the city's economy.

The weather is pretty good, though. Let's look at the bright side, shall we -- Bonnie?

SCHNEIDER: Absolutely, Carol, the weather is pretty good.

(WEATHER REPORT)

SANCHEZ: Thank you so much.

Carrie Lee is going to be joining us now with financial news. And I guess, don't tell me that gas prices are going to go up again.

CARRIE LEE, CNN CORRESPONDENT: That's exactly what I'm going to tell you, Rick and Soledad.

SANCHEZ: I told you not to tell me that. It's like a Maxwell Smart episode.

LEE: These are the facts. Well these are the predictions, anyway, from the Lundberg Survey. And you know this is a bit of a surprise, because this is the first increase in gas prices we have seen in three-and-a-half months. According to Lundberg, gas prices up over 8 cents a gallon to an average $2.21. Still, this is quite a bit of a drop from the high three-and-a-half months ago of $3.01. This was after Katrina struck, all those refineries were out. And so we're down 88 cents since then.

However, Lundberg predicting that we'll continue to see increases into 2006. They're expecting steep rises of about 57 cents a gallon through July. And a big part of the reason here is government mandated restrictions in gas content, some ethanol blends, things like that all push prices higher.

Now what's interesting is that crude oil prices have actually steadied a bit. We were above 60 bucks a barrel not too long ago. We're now in the $58 range. And as warmer weather is expected to come out in the next couple of months that could put pressure downward on crude oil prices.

But still, Rick and Soledad, some other factors at play here, even though crude prices do affect gas prices, these government issues going to push prices up higher.

O'BRIEN: Bad news. All right.

LEE: Yes.

O'BRIEN: Carrie Lee thank you for the update anyway.

SANCHEZ: Thanks for that.

LEE: (INAUDIBLE) information there. Yes, you're welcome.

O'BRIEN: Appreciate it.

Carol's got a look at what's ahead in "Morning Coffee."

Hello.

COSTELLO: Hello.

Yes, in "Morning Coffee," the London tabloid, "The Sun," says it has interviewed Saddam Hussein from jail. We'll tell you exactly how they accomplished that. And tell you what Saddam Hussein was really doing in that hole, you know when the Americans captured him. That's ahead on "Morning Coffee."

(COMMERCIAL BREAK)

O'BRIEN: OK, no disrespect for Madonna, but Eartha Kitt did this song so much better many years ago. It was a fantastic song, Fanta Baby (ph), love it.

SANCHEZ: For the record.

O'BRIEN: Time for "Morning Coffee." Carol's got that.

Good morning.

COSTELLO: Yes, that song doesn't exactly go with my first story, but let's give it a go anyway, shall we?

SANCHEZ: We'll fit it in.

COSTELLO: OK, here it goes.

I was reading this interesting interview this morning in a British tabloid. The British tabloid, "The Sun." It says it interviewed Saddam Hussein from prison. What it really did is it like gave questions to his lawyer and then his lawyer supposedly asked Saddam Hussein. Yes, that's how it went.

Anyway, among the revelations is that there was supposed to be a motorcycle waiting for him by that spider hole you know when he was captured by American troops. There was supposed to be this motorcycle. And he was supposed to come out of the hole, which he says he was supposed to -- supposedly in only a day, not weeks. But he was supposed to come out of the hole, jump on the motorcycle and speed away. But of course, instead, American troops showed up.

That's just one of the things Saddam supposedly said through his lawyer Ramsey Clark. The paper also said Saddam is not afraid to die. They quote him as saying there will always be another Saddam. And apparently he wasn't too happy with the paper printing pictures of him in his underwear. Do you remember that?

O'BRIEN: Who would be? Yes.

COSTELLO: Actually -- yes, who would be? But Saddam was especially upset. He called it not only an insult to him, but an insult to the Iraqi people.

O'BRIEN: That's just bizarre. That whole thing is odd.

COSTELLO: Yes. The rest of the article is bizarre, too. So if you want to read more, go to "The Sun," "The London Sun" online and you can read the rest.

SANCHEZ: Some might even consider it an insult to Fruit of the Loom.

COSTELLO: Yes, I'm sure Fruit of the Loom thought so.

It looks like Washington has a new nightmare. His name is Evo Morales. He's poised to be Bolivia's next president. Morales has promised to be Washington's nightmare. And he's way ahead in the vote in the country's election. He's a socialist and he's a coca farmer. You know coca is where they make cocaine from. He says he'll get rid of the country's anti-drug campaign. He also...

O'BRIEN: That's nice.

COSTELLO: Yes. Actually there was this news conference, and he had a bunch of coca leaves on the table, and he was nibbling one as he conducted the news conference.

O'BRIEN: And he's leading?

COSTELLO: He's leading, and I mean be 50 percent. I mean he's got 50 percent of the vote.

SANCHEZ: Well there's a move that way. If you look at Latin America, the same thing you know, not only Ecuador, places like Argentina,...

O'BRIEN: Uruguay.

SANCHEZ: ... place like Uruguay and as well as in Brazil.

COSTELLO: Yes, and...

SANCHEZ: And then of course there's our friend Hugo.

COSTELLO: That's right, Hugo. Speaking of Hugo Chavez of Venezuela, this guy counts him as a best friend and also Fidel Castro as a good buddy.

Last week I was telling you about angry fans in Detroit. I watched that game and it was painful. Anyway, the fans had this plan to march before the Lions game. Well they came and they saw the same thing that made them mad in the first place.

Here's Matt Millen, first. Look at him looking glum throughout the game. He's the embattled general manager drawing the ire of fans. And this is why, because the Lions stink.

SANCHEZ: Yes.

COSTELLO: Forty-one points scored on them. And they just look like a high school team.

Let's go to the "Detroit Free Press" because you can see the season of discontent. And I want to tell you about the angry fan march before the game. A thousand people showed up and they carried banners kind of like this, fire Millen. There was another banner of a big Millen head with a circle with a line through it.

In the stands, a lot of fans were wearing the color of the Cincinnati Bengals, which would be orange. I mean there was a sea of orange. It was embarrassing. They were booing. The Detroit fans were booing the Lions...

O'BRIEN: Let's talk about my Giants, shall we?

SANCHEZ: Yes, Giants are good. Jets didn't look good.

O'BRIEN: Tiki. COSTELLO: Tiki is something else. Rushed more than 200 yards.

O'BRIEN: You need to switch teams, honey.

COSTELLO: I do. And I love T. I even like Rondi (ph). No, I'm going to stick with the Lions. I am.

SANCHEZ: About the (ph)...

Millen has fired five different coaches and they have all been...

COSTELLO: Stunk.

SANCHEZ: Yes, all right.

COSTELLO: They have all stunk. He stunk. I want him gone.

SANCHEZ: Well now that you have made that perfectly clear.

O'BRIEN: Time to be a Giants fan, Carol, we'll talk about it later.

COSTELLO: Hey, I just say it like it is.

O'BRIEN: Ahead this morning, we're going to talk about this troubling discovery of fake flu drugs. What's it mean for the national plan to protect against bird flu? We've got some details on this story. It's coming up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Get the latest news every morning in your e-mail. Sign up for AMERICAN MORNING QUICK NEWS at CNN.com/am.

Still to come this morning, President Bush's speech on Iraq. He was conciliatory, even admitted making mistakes. But is a change in tone enough to get the public behind his message? A look at this is ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: President Bush opens up to the American people about Iraq. Will his prime time speech change public opinion?

Ariel Sharon in the hospital this morning, following a mild stroke. He's still working from his hospital bed.

And a man accused of assault while posing as a New York City firefighter is heading to court. We'll tell you why.

And the king is back, "King Kong" that is. The great ape is number one at the box office.

ANNOUNCER: You're watching AMERICAN MORNING with Soledad O'Brien and Miles O'Brien.

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