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Your World Today

Iran Nuclear Dispute; President Bush to Deliver Annual State of the Union Address; Greenspan Steps Down

Aired January 31, 2006 - 11:59   ET

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


ANNOUNCER: Live from CNN Center, this is YOUR WORLD TODAY.
JIM CLANCY, CNN INTERNATIONAL ANCHOR: Iranians reacting with anger and some threats after the world's major powers recommend Iran be hauled before the U.N. Security Council.

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Turning pain into political action. The mother of a British soldier killed in Iraq speaks out.

CLANCY: And bidding farewell to the Fed. Chairman Alan Greenspan moving on, his successor moving in.

VERJEE: And...

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I'm pleased to announce that the films selected as the best picture nominees for 2005 are...

(END VIDEO CLIP)

VERJEE: Mining Oscar gold. Academy Award nominees are announced.

CLANCY: It is 9:00 in the morning in the city of Los Angeles, and, of course, Hollywood. And it's 8:30 in the evening in Tehran right now.

I'm Jim Clancy.

VERJEE: And I'm Zain Verjee.

This is YOUR WORLD TODAY.

CLANCY: Welcome to our viewers in the United States and around the world.

The long-simmering dispute over Iran's nuclear ambitions reaching a new and critical stage, the U.N. Security Council.

VERJEE: Absolutely. The council's five permanent members agreed that it is time to act. But Iran says that that will only make matters worse. Tehran's top negotiator says Iran could resume suspended nuclear activities and bar surprise U.N. inspections if that happens. CLANCY: Now, Russia, China and France still insisting the diplomatic path is not yet closed. Russian and Chinese diplomats traveling to the Iranian capital. They're going to be urging the government to answer questions about its nuclear intentions.

VERJEE: Meanwhile, Iranians are reacting with defiance and with anger. Hundreds gathered to voice their support for their country's nuclear research activity. Many Iranians feel that getting advanced technology is their basic and fundamental right.

Iran's chief nuclear negotiator also had sharp words. He says while the door was open for talks, this latest move was not a positive development.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translator): With a U.N. referral or a report to the United Nations Security Council as the end of the road for diplomacy, and this is not a positive step. For the Europeans and the IAEA board, this step will not be a bright moment. And if I may say, it will be a bad move to refer a country's nuclear file for further investigation to the Security Council. And to do this with Iran's file, it will be a bad direction to take for the Europeans.

(END VIDEO CLIP)

CLANCY: As a long-time ally and big trading partner of Iran, Russia certainly has played a crucial role in trying to resolve the nuclear impasse.

Senior International Correspondent Matthew Chance joins us now live from Moscow.

Do the Russians think that they can strike a deal?

MATTHEW CHANCE, CNN SR. INTERNATIONAL CORRESPONDENT: Well, certainly that seems to be the word coming from Vladimir Putin in his annual news conference that he's been holding today. It lasted several hours.

But one of the main issues that he addressed in response to questions by journalists was this issue of Iran and the so-called Russian compromise that's essentially the only diplomatic plan on the table at the moment to try and find a negotiated settlement to this nuclear crisis with Iran.

We've heard quite a lot over the past several weeks about whether it's going to be accepted or whether it will be rejected by Iran, this Russian proposal. Essentially, it operates around the idea that Russia would take uranium from Iran, enrich it on Russia soil, and then return the nuclear fuel to Iran, and then reprocess, take it back, the waste product, and reprocess that it in Russia, thereby, you know, increasing the ability of the international community to oversee what Iran is up to with its nuclear program, and at that same time deny Iranian scientists that very sensitive enrichment technology. Well, at that press conference earlier today in Moscow, Vladimir Putin, the Russian president, gave us some more details about what exactly he had in mind. Here's what he had to say.

(BEGIN VIDEO CLIP)

VLADIMIR PUTIN, RUSSIAN PRESIDENT (through translator): We are proposing to set up a network of centers of nuclear fuel cycle for uranium enrichment, granting equal and non-discriminatory access to all those who would like to participate in the development of nuclear energy. That includes our Iranian partners.

(END VIDEO CLIP)

CHANCE: Well, that -- that Russian sort of hope there of a negotiated settlement still being held out, despite the fact that the five permanent members of the Security Council, including Russia, that close ally of Iran, have now said in agreement with each other that now is the time to report this matter to the United Nations Security Council -- Jim.

CLANCY: All right. Matthew Chance reporting to there -- to us there live with the latest from Moscow.

Thank you, Matthew.

VERJEE: So, what can we expect if the matter does get to the Security Council? Our Richard Roth is at the United Nations. He joins us now.

How is it handled over at the U.N. if there is a referral, Richard?

RICHARD ROTH, CNN SR. U.N. CORRESPONDENT: Well, Zain, diplomats and experts we've talked to say things could, in effect, get out of hand. You never know where it will go once it gets here to the Security Council, which still seems several weeks away.

Today, ambassadors from France and the United States were very happy that there was unity among the permanent five countries, and John Bolton from the United States says this is now going to be a test for the Security Council.

(BEGIN VIDEO CLIP)

JOHN BOLTON, U.S. AMBASSADOR TO THE UNITED NATIONS: The Iranian weapons nuclear program is a clear threat to international peace and security, which is the jurisdictional threshold for the council. And when the matter gets here, whenever it gets here, how to deal with it will be a test for the council.

(END VIDEO CLIP)

ROTH: The Security Council would likely, probably coalesce around an early statement to be issued calling on Iran to cooperate. After that, there could be resolutions, all kinds of leverage that the Security Council would use to get Iranian cooperation. That's how diplomats see the use of the Security Council to help the International Atomic Energy Agency -- Zain.

VERJEE: Richard Roth at the United Nations.

Thanks, Richard.

Well, the debate over Iran is the subject of our question of the day.

CLANCY: That's right. We're asking you this: Can there be a compromise with Iran over its nuclear program? What do you think?

E-mail us your thoughts at ywt@cnn com.

VERJEE: We're going to read some of them a little bit later here on YOUR WORLD TODAY. And don't forget to tell us your name and where you're writing from as well.

As Hamas prepares to take over the Palestinian government, its top officials say that they will not be blackmailed and they won't accept conditions for receiving future international aid. The militant group vows to search for and find other sources of aid if necessary.

On Monday, the so-called quartet of Middle East peacemakers, the U.S., the U.N., the EU, and Russia, all said that a review of Palestinian aid is inevitable barring a major policy shift by Hamas.

(BEGIN VIDEO CLIP)

SAMI ABU ZUHRI, HAMAS SPOKESMAN (through translator): The decision of the quartet is a punishing one. It violates the right of the Palestinian people and favors the Israeli occupation. It punishes the Palestinian people for having cast their vote in free elections. The Hamas movement reiterates its commitment to its ideology and pledges to firmly refuse renouncing Palestinians' rights by all means.

(END VIDEO CLIP)

CLANCY: Well, Israel is applauding that decision by the quartet. It says it is ready to follow suit.

A spokesman for the acting prime minister, Ehud Olmert, saying that the payments to the Palestinian Authority will stop pending a review of Hamas policies. Now, each month, Israel normally transfers $55 million in taxes and fees from Palestinian workers -- this is the Palestinians' own money -- back to the Palestinian government. That could stop.

VERJEE: The Bush administration says a new videotape from al Qaeda's number two is evidence al Qaeda leaders are on the run. Osama bin Laden's top deputy appears in the new video just weeks after the U.S. military tried to kill him in a targeted strike. In it, Ayman al-Zawahiri specifically refers to the failed January 13 missile strike in Pakistan and he warns of future attacks on Americans. (BEGIN VIDEO CLIP)

AYMAN AL-ZAWAHIRI, AL QAEDA DEPUTY LEADER (through translator): And Sheikh Osama bin Laden offered you a decent exit from your dilemma, but your leaders who are keen to accumulate wealth, insist on throwing you in battles and killing your souls in Iraq and Afghanistan, and, god willing, on your own land.

(END VIDEO CLIP)

VERJEE: Al-Zawahiri goes on to taunt Mr. Bush, calling on American and British families to remember Bush when their war dead come home.

CLANCY: A journalist watchdog group says it plans to work with the Arabic language media to try to help organize a campaign to gain the release of hostage Jill Carroll. That word from the Reporters Without Borders just a day after a tape of a tearful Carroll was shown on the Al-Jazeera network. The network said the American reporter pleaded for the release of female prisoners in Iraq.

Meantime, no word on four Christian peace activists kidnapped in Baghdad. Two German engineers also being held hostage there.

VERJEE: The fight against terrorism and the war in Iraq are expected to feature prominently when President Bush addresses the American public in his annual State of the Union Address on Tuesday night.

White House Correspondent Suzanne Malveaux joins us now from the White House with a preview.

Suzanne, what can we expect?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Zain, of course the president is going to be addressing a number of the world's hot spots. Of course the first one, Iraq.

The president trying to elicit support from Americans on Iraq policy. He's going to be defending the global war on terror, as well as his domestic spy program. This comes amid, of course, the continual attacks inside of Iraq, and really a very important, a critical window, if you will, the 12 months of this year, to really try to turn things around in that area, and also the hope from this administration to reduce U.S. troops.

Then you take a look at Israel and the Palestinian Authority. Of course, the election win of Hamas, which the United States considers a terrorist organization, the president will say that he still believes in promoting Middle East peace and democracy, that it is important now more than ever.

And then finally, of course, dealing with Iran. This is something that the president has dealt with in past State of the Union addresses, calling it a member of the "axis of evil." Good news for this administration in the fact that the permanent five members of the U.N. Security Council have decided to take on this issue. Whether or not it will actually comply with its nuclear program, that is something the president is also going to talk about.

So all of these hotspots in the world. He is going to try to demonstrate that he is a leader and that he wants Americans to stick by him, to stay committed with those different causes.

On the domestic side, he'll also be talking about making the United States more competitive workers by providing aid when it comes to health care costs, when it comes to energy, when it comes to making the U.S. worker competitive globally -- Zain.

VERJEE: Suzanne Malveaux reporting.

Thanks, Suzanne.

And CNN plans live coverage of Mr. Bush's State of the Union Address. Make sure you tune in on Wednesday at 1:45 GMT.

For viewers in the U.S., special coverage begins with Wolf Blitzer and Paula Zahn in "THE SITUATION ROOM." That's at 7:00 p.m. Eastern -- Jim.

CLANCY: Well, also in the United States, the Supreme Court is going to soon have a new face on the bench. It's official.

A short while ago, the U.S. Senate approved the appointment of appeals court judge Samuel Alito to the high court. That vote ran predictably right along the party lines, just as predicted, although there were a few Democrats that joined Republicans in confirming Alito.

The final vote, 58 in favor, 42 opposed. He needed 51 votes.

So Alito expected to be sworn in a bit later, just hours before the president delivers his State of the Union Address. A good chance Judge Alito will be there in attendance tonight.

VERJEE: For almost two decades, his words had investors on the edge of their seats.

CLANCY: Now Alan Greenspan is stepping down as chairman of the U.S. Federal Reserve. On this, his final day, we're going to examine Greenspan's legacy, as YOUR WORLD TODAY continues.

(COMMERCIAL BREAK)

CLANCY: To our viewers around the world and in the United States, welcome back. This is YOUR WORLD TODAY on CNN International.

Well, jurors in the Enron trial in Houston, Texas, getting an earful and getting it early. It's the fraud trial of two top former executives of Enron. Six hours of opening statements are scheduled; two for the government and four for the defense. Prosecutors contend that Kenneth Lay, the founder, and Jeffrey Skilling, the CEO, lied about Enron's massive financial problems, keeping the stock price high while they sold before the energy company had to go bankrupt in late 2001.

Thousands of employees lost their jobs. Investors lost billions of dollars. Literally, widows and children were left broke. Skilling and Lay contend they did nothing wrong.

VERJEE: His tenure as the chairman of the U.S. Federal Reserve has spanned nearly two decades under four presidents. At the end of the day, Alan Greenspan steps down after one final policy meeting.

As Andrea Sanke tells us, the man who has been called the most influential financial figure in the United States leaves an uncertain legacy.

(BEGIN VIDEOTAPE)

ANDREA SANKE, CNN INTERNATIONAL CORRESPONDENT (voice over): Over his 18 years at the helm of the U.S. Federal Reserve, Alan Greenspan oversaw some of the market's most tumultuous times. Just two months after his tenure began in 1987, the U.S. stock market crashed. A decade later, financial crises struck Asia, then Russia, then Latin America. In 2000, the dot-com bubble burst, followed by the September 11 attacks in 2001.

Greenspan won mostly praise for carefully tailoring the Fed's response to each event, often curbing panic with words of calm and confidence.

ALAN GREENSPAN, FEDERAL RESERVE CHAIRMAN: The one thing that I can assure you is that the presumption that the Treasury Department is in control of monetary policy is false.

SANKE: And though few would question the precision of his immediate decisions, some economists worry about the long-term impact of Greenspan policy.

By dropping interest rates to historic lows after September 11, the Fed helped nervous consumers start spending again. But four years on, with rates at only 4.25 percent, some fear the future consequences of the cheap money supply.

While aggressive consumer spending has supported GDP growth, it has also created record household debt, a negative savings rate, and a monstrous current account deficit. And some economists say this is what Greenspan's legacy might ultimately be, one marked by the biggest economic imbalances in U.S. history at a painful long-term cost.

Andrea Sanke, CNN, London.

(END VIDEOTAPE)

VERJEE: Let's check on Wall Street now just ahead of the decision on interest rates by the U.S. Federal Reserve.

(STOCK MARKET REPORT)

CLANCY: All right.

She's being remembered as the first lady of the civil rights movement.

VERJEE: When we return, we're going to look back on the life and the legacy of Coretta Scott King.

Stay with CNN.

(COMMERCIAL BREAK)

DARYN KAGAN, CNN ANCHOR: I'm Daryn Kagan at the CNN Center in Atlanta. More of YOUR WORLD TODAY in just a few minutes, but first a check on stories making headlines here in the U.S.

Just over an hour ago the U.S. Senate approved Samuel Alito as the newest justice to the Supreme Court. The lawmakers voted almost exclusively along party lines. He'll take the oath of office later today before the president delivers his State of the Union Address.

Let's get the latest now from Capitol Hill and our congressional correspondent, Ed Henry.

Ed, hello.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good afternoon, Daryn.

That's right, a sweet victory for the president on the even of his State of the Union Address. As you noted, a bitter defeat for the Democrats who saw their last-minute quixotic filibuster fizzle out and also divide their party. And Judge Alito now poised to be sworn in as the 110th justice to the Supreme Court after the Senate voted to confirm him 58-42.

That margin the most sharply-divided confirmation vote for a Supreme Court justice since 1991, when Clarence Thomas was confirmed 52-48. The closest vote in the past century. This battle, as you know, bitter and partisan. And after the vote, Republican Senator Orrin Hatch teed off on Democrats for attacking Alito.

(BEGIN VIDEO CLIP)

SEN. ORRIN HATCH (R), UTAH: When you have a man, the decent -- who has the decency, the legal ability and the capacities that Judge Alito has treated this way, I think it's despicable.

(END VIDEO CLIP)

HENRY: Now, Democrats have defended those attacks, saying that Judge Alito deserved tough scrutiny because this is the swing seat on the high court. They charge that Judge Alito was out of the mainstream. That's why this was so divided.

Justice-to-be Alito ended up getting far fewer votes than Chief Justice Roberts, who got 78 yes votes. Alito, again, only 58 yes votes. Four Democrats voting for him, 40 Democrats voting no, only one Republican voting no, moderate senator Lincoln Chafee of Rhode island.

The newly confirmed justice should be ready to be at the State of the Union tonight aside -- beside Chief Justice John Roberts. A sharp and strong image for the president and his ability to reshape the high court -- Daryn.

KAGAN: Ed Henry on Capitol Hill.

Thank you.

And we hope that you join us for complete coverage before, during and after tonight's State of the Union. It begins with Wolf Blitzer and Paula Zahn in "THE SITUATION ROOM" at 7:00 p.m. Eastern.

Other news today.

Coretta Scott King is being remembered as a woman of strength, dignity and grace. The widow of Martin Luther King Jr. has died. She was an activist in her own right who fought to carry on her husband's legacy following his assassination.

Former U.N. ambassador Andrew Young praised King for her role in the fight for civil rights.

(BEGIN VIDEO CLIP)

ANDREW YOUNG, FMR. U.N. AMBASSADOR: It was as though she was -- she was born for the breadth and depth of responsibility that she incurred as the wife of Martin Luther King. Indeed, she was -- she was as strong, if not stronger, than he was.

(END VIDEO CLIP)

KAGAN: Coretta Scott King was 78.

In California, there's still no word on the motive for the deadliest postal rampage in almost 20 years. It happened last night at the Goleta mail sorting center in California.

Police say a woman who used to work for the post service opened fire. Authorities confirm seven people were killed. One of the dead is the suspected shooter. Deputies were responding to calls of shots fired and they found two people dead.

(BEGIN VIDEO CLIP)

SHERIFF JIM ANDERSON, SANTA BARBARA COUNTY, CALIFORNIA: The search revealed an additional four victims who were fatally shot. This is in addition to the three victims who were identified earlier. One of the four deceased inside appeared to have -- to have suffered a self-inflicted gunshot wound. We've concluded the search of the building, and we do not believe that there's any additional threat to the community.

(END VIDEO CLIP)

KAGAN: Two other employees were found wounded. One later died and the other is listed in critical condition.

You probably remember this Rhode Island nightclub fire from three years ago. A hundred people were killed when pyrotechnics sparked the fire.

Now a judge says the former manager of the band Great White has reached a plea agreement. Dan Beakley (ph) is charged with 200 counts of manslaughter. A statement from superior court judge Francis Darrigan (ph) says that Beakley (ph) is willing to change his plea to certain counts in the indictment. The judge will announce details two hours from now, and we will have an update here on CNN.

A pair of American journalists on their way back to the United States for treatment of serious wounds suffered in Iraq. ABC News anchor Bob Woodruff and photographer Doug Vogt will be taken to the Brain Injury Center near Bethesda Naval Hospital near Washington. ABC says that Woodruff is responding to stimuli and briefly opened his eyes. Vogt is said to be alert and joking.

"LIVE FROM" with Kyra Phillips is set to start at the top of the hour.

Meanwhile, YOUR WORLD TODAY continues after a quick break.

I'm Daryn Kagan.

(COMMERCIAL BREAK)

CLANCY: Hello, everyone around the world and in the United States. Welcome back. This is YOUR WORLD TODAY on CNN International. I'm Jim Clancy.

VERJEE: And I'm Zain Verjee. Here are the top stories we're following.

Iran's chief nuclear negotiator says any move to turn up the heat on its nuclear ambitions could mean the end of diplomacy. This after the permanent members of the U.N. Security Council said it's time for the council to take up the case.

Meanwhile in Iran, hundreds gathered to voice their support for their country's nuclear research activities.

CLANCY: The Academy of Motion Picture Arts and Sciences unveiling its latest list of Oscar nominees. Up for best picture, "Brokeback Mountain," "Capote," "Crash," Good Night and Good Luck" and "Munich." The 78th Academy Awards scheduled to take place in Los Angeles the fifth of March.

VERJEE: Later this evening, U.S. President George W. Bush will deliver his annual State of the Union address, a tradition that started with the first president, George Washington. Mr. Bush is expected to focus on domestic issues like the economy, health care, and alternatives sources of energy. But he's also expected to express optimism in Iraq and highlight the dangers of Iran's nuclear ambitions.

CLANCY: Now this is a speech that will be watched around the world, but President Bush's message really is aimed directly at the American public.

CNN senior political analyst Bill Schneider joins us from the pivotal Midwestern state of Ohio in the city of Columbus, a state and a city that figured prominently in the last election.

What are the people there thinking? What do they want to hear from the president?

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: One word, Jim. Jobs. This is a state that's losing a lot of jobs. The automobile industry is very important in this state. Ford, General Motors are cutting back jobs.

The people that I spoke to here are talking about retaining jobs they already have. They're worried about international competition. They're worried about jobs, jobs, jobs. And that's important, because, as you say, Ohio is now ground zero in American politics. It is the state that reelected President Bush in 2004.

CLANCY: Is there really much that President Bush can say to generate jobs?

SCHNEIDER: Well, he can talk up the economy. There are some policy levers he and the Congress have. But you know, it's an interesting thing. American voters consider the president of the United States the commander-in-chief of the economy. They think that must be in the Constitution. The fact is, he's not.

There is no commander-in-chief of the American economy. It's too big and it's too unwieldy to be beyond any -- to be in anyone's control. But Americans regard the president as in charge of the economy and they expect him to show some kind of results.

CLANCY: Well, you know, chief among all the economic indicators that the average American has is going to fill up their car with gas. And what they're finding is that, once again, gas prices are headed upwards.

SCHNEIDER: That's right, they are, and it could get worse, particularly because of the tension with Iran. That's an important source of oil in the world market. OPEC announced they are not going to make up for any shortfalls if Iran cuts production. And so we're likely -- there is a danger of seeing oil prices and therefore gasoline prices increase very sharply. I visited swing voters who now live in the very distant suburbs -- they're called the exurbs -- of places like Columbus, where I am right now. They have to commute 20, 30 miles each way to work every day. Their cars are their lives. You see houses with three or four cars in the driveway. The cost of gasoline is a major part of their expenses. And if gasoline prices go up, those people who are swing voters are going to be very tightly squeezed.

CLANCY: The economy may be issue number one, but, Bill, when we look at all of this, I mean, Iraq is still up there, still a major concern of the people of the United States. What's the sense they're giving you about the direction they see the administration taking this country?

SCHNEIDER: Well, on the issue of Iraq, the voters here in Ohio say they support the war, they support the troops, but they would like to hear some kind of a timeline or at least an exit strategy from Iraq. They don't say they want to pull the troops out right now. They understand what's at stake in Iraq for the United States. They don't want to leave that country a nest of terrorism, the way Afghanistan was after that war some years ago.

So, they understand what's at stake, but they want to know how are we going to get out of there? When are we going to get out of there? What's the exit strategy? They're eager to hear that.

CLANCY: Bill Schneider, as always. There in his warm, political thinking cap in Ohio. Thank you much for being with us -- Zain.

SCHNEIDER: Sure.

VERJEE: Jim, one day an Iraqi president may give his or her State of the Union address from Baghdad or it may never happen. As Aneesh Raman tells us, Iraq's political evolution so far it's been a slow, painful and uncertain process.

(BEGIN VIDEOTAPE)

ANEESH RAMAN, CNN CORRESPONDENT (voice-over): It's been the biggest success here so far, democracy taking root vote by vote. Last year, Iraqis went to the polls three times, most recently to elect a permanent government.

But six weeks after election day, the government is still yet to form, with negotiations set to take many more weeks, if not months. And it's still anyone's guess as to what kind of country Iraq will become, secular or theocratic, moderate or conservative.

The biggest challenge here remains security. The insurgency continues its relentless campaign of bombings, of kidnappings. Last year the number of suicide car bombs tripled from the year before. The number of bombers using suicide vests went up tenfold.

A daunting challenge for these men, Iraq's trained and equipped security force, now numbering 227,000. But they are still uneven in their capability to conduct operations without American military help, and many still lack the necessary equipment and armor to carry out their jobs.

This year will likely see fewer U.S. forces in Iraq. Some 30 bases have been either closed or handed over to the Iraqis. But the fight remains intense, many variables yet to play out. In 2005, 846 U.S. troops died in Iraq, almost the same number as the previous year. The total since the war began spans at over 2,200. Thousands more Iraqis have been killed, the true number simply impossible to know.

(on camera): There's a lot riding here on 2006, both for the Bush administration that is keenly aware it's an election year back home, and for Iraqis, who will soon find out how well their new permanent government fares in bringing about stability and economic development.

Aneesh Raman, CNN, Baghdad.

(END VIDEOTAPE)

CLANCY: Staying in Iraq, two more British soldiers were killed there this week. That brings the death toll for British forces to 100. It's a poignant milestone, of course, but much less than U.S. casualties.

But for one woman back home in Britain, all of this is very personal, and Paula Newton brings us her story.

(BEGIN VIDEOTAPE)

PAULA NEWTON, CNN CORRESPONDENT (voice-over): On a serene slice of Scottish turf, Rose Gentle lingers over her son's grave and calmly indulges her grief.

But back at home, she indulges her anger, and most of that anger is reserved for U.S. President George Bush and his ally, British Prime Minister Tony Blair.

ROSE GENTLE, MOTHER: To me, me and my husband, I don't blame the Iraqi that killed Gordon, I blame the government.

NEWTON: Nineteen-year-old Gordon Gentle, a British soldier, was blown apart by a roadside bomb in June 2004, just three weeks after he arrived in southern Iraq.

TONY BLAIR, BRITISH PRIME MINISTER: Killing one soldier from the Royal Highlands...

NEWTON: The telly, as she calls it, was Rose's grim reaper.

GENTLE: That scene -- a body lying on the ground, seeing a bloody foot had been blown up, I seen it on the telly.

NEWTON: She remembers thinking, it's not Gordon. It just can't be. But it was.

GENTLE: (INAUDIBLE) How can it really get you? Something you turn on the telly? (INAUDIBLE) another boy who's actually been blown up and been killed. You're reliving it every day.

NEWTON: And that's Rose's point. She wants all British and American forces out of Iraq now.

GENTLE: Thus far, wasting lives. Wasting lives.

NEWTON: Her opinion is backed by a brewing British sentiment towards the war, one that's felt even by some British veterans of earlier wars who feel today's soldiers were duped into believing Saddam Hussein had weapons of mass destruction.

UNIDENTIFIED MALE: To me, it's illegal.

UNIDENTIFIED MALE: There was no bombs there, it was that simple (INAUDIBLE). And if they had bananas instead of oil, there would be nobody there, simple.

NEWTON: Those opinions give Rose strength.

GENTLE: When I got them, I could still his aftershave off his stuff.

NEWTON: Convincing her that just mourning, saving memories like those like Gordon's unpacked suitcase, is just not enough, wouldn't do her son justice.

GENTLE: And then you look at Gordon and think, no, I'm not giving up.

NEWTON: This working class mom is now on a mission that has her butting heads with the world's most powerful leaders and joining forces with America's most famous bereaved mom, Cindy Sheehan.

JODIE EVANS, ANTI-WAR ACTIVIST: Go, Rose!

NEWTON: American anti-war groups are embracing Rose, harnessing the potential power she and other families could have in bringing the troops home.

EVANS: When it's a mother standing up there and saying, I have paid the ultimate price and we have to end this madness, people stop and listen.

NEWTON: Rose says she'll stop Tony Blair, just as Cindy Sheehan has stopped George Bush. She's already protested in front of 10 Downing Street three times.

GENTLE: Why hasn't he actually spoke to me? Because that man, can he face me? So to me that, man is a coward. Our boys are more men than he'll ever be.

NEWTON: Rose hopes her attacks will resonate enough to get Britain to reconsider ITS commitment in Iraq, and that could affect American foreign policy.

CHARLES KUPCHAN, COUNCIL ON FOREIGN RELATIONS: If Blair were to go wobbly, if he were to begin to say it's time for us to head for the exits, that would certainly increase the pressure on Bush to follow suit.

GENTLE: I look at him and I look at Blair and I think (INAUDIBLE) you must be getting to them.

NEWTON: Rose has been at this more than a year. She's gone from a sobbing mom to a persuasive protester. She's refined her message, but her grief, that's still raw. And so painfully obvious, she'll be putting it on display for Tony Blair again and again.

Paula Newton, CNN, London.

(END VIDEOTAPE)

CLANCY: You're looking at a live picture now. This is coming to you from Morganton, North Carolina in the United States. A chemical fire at a factory here sending at least two of some 30 or more workers to local hospitals to be medevaced. No cause of the explosion and fire has been announced yet. It is still not under control. Again, at least two people have been injured by all of this. It's a specialty chemical manufacturing company in North Carolina. That is north and west of the city of Charlotte.

And you see firefighters pouring water on the blaze right now. But black smoke indicating it is still not under control.

VERJEE: Leaders and diplomats for more than 17 nations are in London, mapping out Afghanistan's future. Delegates to the two-day donors conference, who include U.N. Security-General Kofi Annan issued a five-year blueprint for the nation's security, economic development and counter-narcotic effort. Four years after Taliban leaders were ousted by a U.S.-led coalition, the country is still wracked by violence and political unrest. The booming trade in heroin and opium is another problem. Afghan President Hamid Karzai says his country's ready to move forward.

(BEGIN VIDEO CLIP)

HAMID KARZAI, AFGHAN PRESIDENT: Afghanistan remains committed to cooperation with the rest of the world and with the United Nations. Afghanistan is proud to be, once again, a member of the family of nations and a member that now is there with integrity and pride. Afghanistan would like to continue on this road toward more success, towards prosperity and towards stronger institutionalized democracy in Afghanistan.

(END VIDEO CLIP)

VERJEE: The five-year plan includes tripling the Afghan army to 70,000 troops and disbanding all illegal militias by next year.

(WEATHER REPORT)

CLANCY: For one star, at least, better to be lucky and good. VERJEE: George Clooney is up for three Academy Award nominations. We're going to get the scoop on all the high-profile nominations from entertainment maven Michael Musto (ph). That's when we come back.

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CLANCY: Welcome back. The movie industry, buzzing following the announcement of the latest crop of Academy Award nominees. Cheryl Castro gives us a look at Oscar's best picture picks.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: The films selected as the best picture nominees for 2005 are "Brokeback Mountain."

CHERYL CASTRO, CNN CORRESPONDENT (voice-over): The gay cowboy romance "Brokeback Mountain" is in first place with eight Academy Award nominations, including best picture.

HEATH LEDGER, ACTOR: Like I said, I mean, I was getting married in November.

CASTRO: Also among the film's nods, Heath Ledger for best actor, Michelle Williams and Jake Gyllenhaal for supporting roles, Ang Lee for best director.

PHILIP SEYMOUR HOFFMAN, ACTOR: Yes, I've decided on a title for my book.

CASTRO: Also in the running for best picture, the Truman Capote story "Capote," starring Philip Seymour Hoffman, who was nominated for best actor.

UNIDENTIFIED MALE: Are we dressed like gang bangers?

CASTRO: And the ensemble drama "Crash" is also up for best picture.

The Johnny Cash biography, "Walk the Line," however, didn't make the best picture category cut, but stars Reese Witherspoon and Joaquin Phoenix ...

REESE WITHERSPOON, NOMINEE: How are you doing, John?

JOAQUIN PHOENIX, NOMINEE: Well, OK, June. How are you doing?

CASTRO: ... did pick up acting nominations for the movie.

UNIDENTIFIED FEMALE: The nominees are George Clooney in "Syriana."

CASTRO: Three nods went to George Clooney, including one for best supporting actor for his role in the Middle East oil drama "Syriana." And Peter Jackson's remake of "King Kong" didn't score in the major categories and picked up only technical nominations. Cheryl Castro, CNN, Atlanta.

(END VIDEOTAPE)

VERJEE: On March the 5th, the awards will be handed out in more than 20 categories. Helping us handicap some of the higher-profile nominees is "Village Voice" columnist Michael Musto. He joins us now from New York. Nice bow tie, Michael.

"Brokeback Mountain" ...

MICHAEL MUSTO, COLUMNIST, "VILLAGE VOICE": It means a lot to me. That's why I wore this.

VERJEE: "Brokeback Mountain," eight nominations. What do you think?

MUSTO: I think it's a shoe in to win. There hasn't been such a sure thing since "Titanic," and that wasn't even such a sure thing. This is going all the way to Oscar. It's just a movie that's captivated everyone, won all the critics' awards and Ang Lee is going to win director as well.

VERJEE: Has there ever been a film of gay love that's won the Oscars before?

MUSTO: "Kiss of the Spider Woman" in the 80s won best actor for William Hurt, and that was about a gay, outrageous character with lots of fancy ideas. And it was nominated for best picture, but no, this would probably be the first gay-themed movie to win best picture. And I'm quite certain it will.

VERJEE: A big surprise, also perhaps the biggest challenger to "Brokeback Mountain," "Crash."

MUSTO: "Crash" was a movie that was very well-received when it came out. It's about a racial incident. It's one of those coincidence movies where one incident sparks a lot of things going on.

And as the year progressed, people realized how it really rose above the pack. The ensemble acting was absolutely brilliant. My girl, Sandra Bullock, gave a terrific performance, far away from "Miss Congeniality Two."

VERJEE: And George Clooney, three nominations?

MUSTO: It's quite an achievement for George. He has a good chance for supporting for "Syriana." I don't think he will win picture or director, but for supporting, he's up against Paul Giamatti, who has a lot of sentiment because last year he was snubbed for a nomination for "Sideways," so this year he might get it for "Cinderella Man." But even if George comes away empty handed, it's been a tremendous year for him.

VERJEE: And the best actress award? Who do you think it could come down to? A lot of people are saying Keira Knightley and Judi Dench.

MUSTO: I'm afraid not. I think it's going to be between Reese Witherspoon and Felicity Huffman. Felicity has the ultimate stunt role as a woman herself, playing a man who completes her journey to being a woman and has a sex change, finds out she has a son who's a gay hustler who needs to be bailed out of jail. It happens all the time.

Felicity actually ...

VERJEE: Yes, of course.

MUSTO: Felicity did very well as this character who's trying to blend in with her, you know, reigning in her body language and using light makeup, but I really think this is the year of Reese Witherspoon.

And for the Oscar, it's not just for what you did for that performance, it's your body of work and Reese has a better body of work in the movies at that point. And for the same reason, I think for best actor, Philip Seymour Hoffman is going to win for "Capote," and he's going to edge out Heath Ledger for "Brokeback Mountain."

VERJEE: How much does political maneuvering and sort of behind the scenes jockeying influence the outcome?

MUSTO: It has a lot to do with it. There's so much promotion going on. There's more campaigning than in a political campaign. And there's backstabbing. There are, you know, whispering campaigns against the competition and there's lots of kissing babies and throwing lunches, and sending people Rolex watches. But, ultimately, I like to believe the best people win. Yes, right.

VERJEE: All right. All right. Staying optimistic, staying idealistic. From the "Village Voice," columnist Michael Musto from New York City. Thanks, Michael.

MUSTO: Thank you.

VERJEE: Let's check our "Inbox" now, Jim.

CLANCY: Yes, that's right. The viewer academy has spoken. We were asking you this. Can there be compromise with Iran over its nuclear program? Here's how some of you replied.

VERJEE: Eddy from Belgium says "no compromise should be done. Iran is a terrorist state and it should be treated that way."

CLANCY: Leon from Bristol, Tennessee wrote this: "Mahmoud Ahmadinejad is a radical and cannot be trusted. You cannot bargain with him. You have to refer him to the IAEA, and set sanctions."

VERJEE: And, finally, Jors or Jors writes from South Africa, "Iran must comply with all U.N. resolutions. Violations must result in remedial action by the international community." Thanks to everyone for writing in to our "Inbox." CLANCY: Some interesting responses.

VERJEE: Yes.

CLANCY: We couldn't get them all in there, because there's -- some people side with Iran and say let them do what they have to do. Get out of other people's business.

VERJEE: Thanks for your e-mails, ywt@cnn.com. We love reading them. I'm Zain Verjee.

CLANCY: I'm Jim Clancy. This has been YOUR WORLD TODAY on CNN International. For our international viewers, there's much more ahead.

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