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Rice, Rumsfeld, Others Urge Passage of $91 Bill; Armed Man Holds Students, Teachers in High School in France; Congressional Committee Votes to Block Dubai Deal

Aired March 09, 2006 - 12:00   ET

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

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: The big guns are on Capitol Hill. Top Bush administration officials push for quick passage of a $91 billion emergency spending bill for the military.
JIM CLANCY, CNN INTERNATIONAL ANCHOR: Oil power. Predictions that Iran might use oil as a weapon if the row over nuclear -- its nuclear program escalates at the U.N.

VERJEE: An archaeologist's nightmare. The land squeeze along the Nile brings development ever closer to a sacred burial ground.

It's 8:30 p.m. in Tehran, 7:00 p.m. in Cairo.

I'm Zain Verjee.

CLANCY: I'm Jim Clancy.

Welcome to our viewers in the U.S. and around the globe. This is CNN International and this is YOUR WORLD TODAY.

VERJEE: The Bush administration's top brass are making a rare joint appearance on Capitol Hill.

CLANCY: What they're looking for is, of course, money, billions of dollars of it, that is vital for keeping up operations in Iraq and Afghanistan. The U.S. secretary of state, Condoleezza Rice, Defense Secretary Donald Rumsfeld, as well as some top generals are up on the Hill testifying on the emergency spending bill.

The package totals about $91 billion. Now, that includes more than $60 billion just for those military operations in Iraq and Afghanistan. The future of the bill threatened by a move in the House coming from, among others, some of the president's own Republican backers to block a Dubai-owned company from taking management of some U.S. port operations.

VERJEE: At the hearings before the Senate Appropriations Committee, there were several questions about the prospects of a full- blown civil war in Iraq.

(BEGIN VIDEO CLIP)

GEN. JOHN ABIZAID, COMMANDER, U.S. CENTRAL COMMAND: There's no doubt that the sectarian tensions are higher than we've seen, and it is of great concern to all of us. On the other hand, the role played by Iraqi security forces after the Samarra bombing was quite professional. They did a good job.

It's my belief that the security situation in the country, while changing in its nature from insurgency toward sectarian violence, is controllable by Iraqi security forces and multinational force -- forces. It's also my impression that we need to move quickly to a government of national unity.

(END VIDEO CLIP)

VERJEE: Meanwhile, the U.S. defense secretary has often been highly critical of the media for what he says is inaccurate reporting on Iraq. Donald Rumsfeld says not enough attention's been paid to the good news coming out of Iraq.

Pentagon Correspondent Barbara Starr has more.

(BEGIN VIDEOTAPE)

DONALD RUMSFELD, SECY. OF DEFENSE: Much of the reporting in the U.S. and abroad has exaggerated the situation.

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): It is one of Defense Secretary Donald Rumsfeld's favorite topics, criticizing a press corps he believes to be highly deficient.

RUMSFELD: Steady stream of errors.

STARR: Rumsfeld's latest theory? What he says is inaccurate reporting about recent sectarian violence and not enough attention to the good news in Iraq.

RUMSFELD: The number of Iraqi deaths had been exaggerated. The behavior of the Iraqi security forces had been mischaracterized, in some instances.

STARR: The military says, for example, "The Washington Post" was flat wrong when it said more than 1,300 Iraqi civilians were killed in the days following the bombing of a Shiite Muslim shrine. The Pentagon says it could only confirm 400 or so deaths. "The Post" stands by its story.

KENNETH BACON, FMR. PENTAGON SPOKESMAN: Blaming the press for problems in Iraq is a terrible waste of energy.

STARR: Ken Bacon was Pentagon spokesman in the Clinton administration. He thinks Rumsfeld is off track.

BACON: I can understand the frustration of the Pentagon, in believing that the press is not doing a good enough job of reporting on schools or hospitals being opened. But that's a hollow story if people are afraid to go to the schools once they're opened.

STARR: Bacon says the press must continue to cover Iraq's political landscape and the reconstruction.

BACON: If the military wants these stories told, they will help to get the press there.

STARR: But covering Iraq is always going to be tough because of the security situation. Sixty-four journalists have died there in the last three years, according to the Committee to Protect Journalists.

(END VIDEOTAPE)

STARR: And you know, Zain, it's frustrating all the way around. Tough to get timely accurate information from the military, but hard times for the military to figure out exactly what's going on in Iraq sometimes.

Just consider this one fact, in the days after the mosque bombing, the media was criticized for -- for exaggerating the number of attacks on mosques. The media generally reported a higher number than the military.

The military said it was about 30 attacks. But just today, the military spokesman in Baghdad said, actually, there were about 80 attacks on mosques in those days. So, tough, frustrating business all the way around -- Zain.

VERJEE: Tough and frustrating. The media's also been reporting and raising questions of Iranian influence in Iraq.

What is the Pentagon saying about that?

STARR: Well, Defense Secretary Rumsfeld says that the Iranians are causing a lot of trouble. He said this week that there were members of the Iranian Revolutionary Guard that had crossed into Iraq, that there were intelligence reports about it, it was significant, it was posing a threat. But there, you know, you also get into intelligence reports.

Some other officials said they weren't too sure that those intelligence reports had been verified. There is, apparently, no question that Iranians are crossing in, that they are linking up with Shia communities in southern Iraq, that they are trying to influence events, but it's a little hard to tell definitively at this point whether those Iranians actually are Revolutionary Guard members, whether they are under the control of Tehran -- Zain.

VERJEE: Barbara Starr reporting to us from the Pentagon.

Thanks, Barbara.

Some early ardent supporters of the war in Iraq have changed their tune, and they're weighing in.

CLANCY: The names are impressive. Among them, longtime conservative columnist William F. Buckley. He says this: "One can't doubt the objective in Iraq has failed. Iraqi animosities have proved uncontainable. Different plans have to be made. And the kernel here is the acknowledgement of defeat."

VERJEE: And this from former Bush defense adviser Richard Perle. "The military campaign and its political aftermath were both passionately debated within the Bush administration. It got the war right and the aftermath wrong. We should have understood that we needed Iraqi partners."

CLANCY: Meanwhile, we want to update you on a developing story that we have out of France. A former teacher armed with a gun has taken some hostages. All of this playing out in western France.

Let's check in with CNN's Jim Bittermann, who's following the story closely from Paris right now -- Jim.

JIM BITTERMANN, CNN INTERNATIONAL CORRESPONDENT: Jim, the latest here is that the teacher has made some demands, apparently. He's asking to see Francois Fillon, who is a former education minister who, apparently, according to some reports here, is on his way to the scene right now.

Now, at the scene are a number of gendarmes who are surrounding the school, the crack hostage negotiating unit is on its way from Paris, as well as a very crack team of militia that are out there ready to address the situation if it should -- if the negotiations don't go anywhere.

Apparently, this hostage taker is a 33-year-old former teacher at the school, somewhat depressed when he had to leave the school two years ago when his contract ran out. He's been looking for a job ever since and not finding one.

He's armed with a handgun, broke into the school about four hours ago, has taken 18 pupils and two adults hostage in the school. These are -- the pupils are age 17 and 18. This is a high school.

So, he's holding them and making this demand of talking to the former education minister. And also, according to a secretary at the school, maybe wanting his old job back.

I'm not sure that's too likely given the way events are unfolding this afternoon.

CLANCY: Jim Bittermann, thank you for keeping us updated minute by minute on this story that's developing in western France.

Jim Bittermann there.

VERJEE: Meanwhile, a political firestorm over an Arab-based company operating half a dozen U.S. ports has reached new levels.

CLANCY: A key congressional committee approved a measure that would block Dubai-based company DP World from operating the cargo terminals of ports like New Jersey, New York and New Orleans.

VERJEE: As Ed Henry reports, some members of President George W. Bush's own political party have joined the effort.

(BEGIN VIDEOTAPE) ED HENRY, CNN CONGRESSIONAL CORRESPONDENT (on camera): After five-and-a-half years of marching in near lockstep with the president, congressional Republicans are taking a tough line on one issue, the Dubai port deal.

REP. DENNIS HASTERT (R), HOUSE SPEAKER: We're talking about safety for our children here, and we have some concerns about the safety of this country and the port deal. And we'll continue to do our best judgment on how to protect the American people.

HENRY: In an overwhelming vote, 62-2, the Republican-led House Appropriations Committee voted to block the port agreement.

While Hastert and House Republicans are bucking the president, Senate Republicans are holding their fire. Majority Leader Bill Frist has said he's more comfortable with the port deal in general and wants the 45-day security review to be completed before decisions are made.

The Republican split was on display at an event celebrating renewal of the Patriot Act. As Hastert a question about the port controversy, Frist ignored reporters.

HASTERT: Well, we want to protect Americans. We have a point of view on this. And we're going to move forward on it.

HENRY (on camera): Senator Frist? Senator Frist?

UNIDENTIFIED MALE: Senator Frist?

UNIDENTIFIED FEMALE: Senator Frist?

HENRY: Senator Frist? Senator Frist?

(voice over): Frist is also dodging Democrats, who caught the majority leader off guard by trying to force a vote on killing the port deal during debate over an unrelated lobbying reform bill. Frist blocked the vote for now, but Democrats vowed to keep trying.

SEN. DICK DURBIN (D), ILLINOIS: We offered him a vote tomorrow. No. We offered him a vote on the next bill. No. We've asked him for a vote at some time certain. He said no.

Well, he can run, but he can't hide.

HENRY: Hastert insists the House action is motivated by concerns about security and not by the upcoming midterm elections.

But one top Republican talking about the president put it bluntly, "If this guy was at 65 percent in the polls, do you think this would be happening?" A key Republican senator is launching a last-ditch effort to save the port deal and is urging the president to deliver a more forceful public campaign to bring Congress on board.

SEN. JOHN WARNER (R), VIRGINIA: I have confidence that he and others will work in the next few weeks to take -- as we say in the Navy, right his old ship and put her on an even keel. HENRY (on camera): Senator Warner is desperately trying to craft a compromise, but even he acknowledged the political reality, it may be too little too late. Warner saying, "I may be the last man standing."

Ed Henry, CNN, Capitol Hill.

(END VIDEOTAPE)

CLANCY: Ed Henry giving us some perspective there.

What's really happening is that lawmakers, even from the president's own Republican Party, are sending him a message saying, yes, we will approve this $90 billion, much of it for the military and Iraq and Afghanistan, but you have to give up the deal with the Dubai Ports World to take over management of five ports, including major ports in New York, New Jersey, Miami and New Orleans.

What is leading the American people? What do lawmakers see that the American people don't want this deal to go through?

Let's check in with our chief national correspondent, John King, in Washington.

John, this has brought not only the lawmakers, it's brought the longshoremen together, Republicans and Democrats.

Why so much opposition?

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Well, Jim, it's a very passionate, emotional issue. Just the ports controversy itself is. There is the issue of whether, in the post-9/11 world, the United States wants any country not from the United States, and in this debate, particularly an a Arab country, managing U.S. ports.

Now, remember, most Americans were probably unaware when this debate started that the majority, the vast majority of ports in the United States, are managed by overseas interests. So that is one factor, should U.S. ports be managed by an overseas interest, specifically an Arab interest, in the post-9/11 world?

There's also the added emotions about the whole debate about outsourcing any U.S. jobs. This is a campaign year for Congress here in the United States. There is -- while the numbers would suggest a relatively strong economy in the United States, still a great deal of anxiety, especially in some of the key political races this campaign season.

And Jim, there's another dynamic that has something to do with the ports controversy, but it's a much bigger question -- five-and-a- half years of built-up Republican frustration with a White House that they do not think seeks the advice, seeks the opinion, has much respect for the United States Congress.

So, this is all boiling and bubbling at once, and it is a remarkable standoff between the president and the majority of his own party.

CLANCY: Now, how well do you think the American public really understands that the people that are loading and unloading the cargo at the port really don't have any control over the security? In this case, this UAE company would not at all control security, just like it is today.

KING: Well, I think through our coverage of this controversy in the past few weeks, Americans are probably learning a lot more about the nuts and bolts of port security. But remember, one of the overriding debates in this country about homeland security, the United States, again, since 9/11, has invested billions in homeland security.

Much of the domestic security operation going to airports and airport security. And Democrats, Republicans, even the White House would concede that port security is not up to where many would like it to be.

So, you have this overarching question that many of these port city politicians raise about why not more money and more resources for ports? Then you have this political controversy.

Are Americans learning more about the nuts and bolts of how this works? It's actually the Coast Guard, the Department of Homeland Security that does the security element, not any management company, whether it be from Nebraska or from Dubai.

But as Americans learn that, they're learning it in a very passionate environment. And what many will tell you, Jim, as you ask about this debate is, remember, maybe the facts in the end would lead people to believe this is not such a bad deal after all, but the facts often get pushed aside by passion and emotions when it comes to politics.

CLANCY: All right. And you look at it and -- you know, you mentioned this from the outset, all of this passion that is associated with this kind of a deal. A lot of people in the Middle East are saying, John, it's racism, it's because this is an Arab country.

There wasn't an outcry when the British were running that port. It's not about foreigners. It's not Americans standing guard over the homeland. It's about Arabs.

KING: Well, it certainly is a fair question, because the reflex certainly was, when people learned that this was an Arab company -- and again, I don't think most of the American people knew at the time that many of the ports, most of the ports in this country, are run, managed, by foreign interests.

And so that is a chief complaint and is one of the things the president has tried to hit on. Number one, on the simple question, you cannot have this reflex reaction to exclude one particular group when you have other overseas interests managing the ports. And number two, this president of course is well aware that the image of the United States, the image of his administration and his own personal image, is not very favorable across most of the Arab and Muslim world. So it is a defining moment for this president. And many have actually behind the scenes wished that he would focus on that issue more. But the president's boxed in, if you will, at the moment because his first reaction when the Republicans challenged him was to threaten to veto anything they sent him that would overturn this ports deal.

The president, if you will, now is almost waiting for somebody else to try to find a solution. Ed Henry in his piece mentioned Senator Warner. The White House needs somebody to try to help it out of this box.

But you mentioned another very emotional issue. We talk about the emotions of national security, the emotions of outsourcing here in the United States. Whether there is a race factor in this is, is certainly a very fair question, and that is the way this is being watched if you talk to people, ambassadors here in town, people who do overseas business interests, former members of Congress who represent companies overseas or do trade deals overseas. They say this is being watched not only in the Arab world, but in Asia, in Europe, everywhere around the world to see if -- how the United States will sort this out in the end.

CLANCY: John King, as always, great perspective. Thanks for being with us.

KING: Thank you.

VERJEE: President Bush, Jim, hoping to get help from somewhere, from any Republican quarters, as John King pointed out.

CLANCY: Exactly. President Bush in a box. The question is, is this going to be the watershed, this one issue going to be the watershed between a president that was effective and a president that's unable, really, to rally his own party? A lame duck.

VERJEE: Well, that's were we want to ask you. Do you think that President Bush is already a lame duck? Can he control his own party?

E-mail us your thoughts, YWT@CNN.com.

Coming up, the drought-stricken land in northern Kenya continues to deplete the lives and the livelihoods of Kenyans.

CLANCY: Aid organizations report their supplies running out. We'll have a report from the region.

And Guillermo Ardu will join us to tell us if there's any rain in the forecast.

(COMMERCIAL BREAK)

VERJEE: Welcome back to YOUR WORLD TODAY here on CNN International.

CLANCY: Millions of Kenyans right now are facing starvation. A severe drought that has lasted months upon months is taking a toll.

VERJEE: People are suffering from malnutrition, they're dying of thirst, and much of their livestock that they rely on for their survival is dead. Their carcasses scattered all over the countryside.

CLANCY: Aid agencies are there. They've been scrambling to provide food. But they fear they are going to run out.

Africa Correspondent Jeff Koinange is in northern Kenya.

(BEGIN VIDEOTAPE)

JEFF KOINANGE, CNN AFRICA CORRESPONDENT: Now, the people of this area are mostly pasturalists or nomads who move from area to area with their cattle, seeking greener pastures. Now, what this does, it makes it more difficult for aid agencies like the World Food Program and CARE to set up a central feeding point.

So what they do is that, instead of having the people come to the food, they bring the food to the people. In this case, corn-soy blend from the U.S., rice from Japan, maize, beans and vegetable oil from the government of Kenya.

Aid agencies here say they will feed up to 500 families on any given day. Food enough to last about a month. But here's the catch: the government of Kenya has only enough food to last about two months, so the food that these people here are taking home could very well be their last meals for some time to come.

Jeff Koinange, CNN, Garisa, in northern Kenya.

(END VIDEOTAPE)

VERJEE: Millions of lives are at risk in the entire region. Eleven million, according to the World Food Program. And they say what they need is money.

CLANCY: And they need rain, too.

Let's check in with Guillermo Ardu.

This is supposed to be the rainy season, isn't it, Guillermo?

(WEATHER REPORT)

CLANCY: Guillermo, thank you.

Up ahead, we're going to check what's moving on international markets.

VERJEE: And later on, the Iranian nuclear dispute as the rhetoric ratchets up. We're going to bring you some expert analysis on the options that lie ahead for both Iran and the United States.

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

A 13-year-old missing New Jersey girl has been found safe in New York City. The girl has been missing since Monday. She's been reunited with her parents.

The girl vanished on her way to school, but later in the day text-messaged her mother pleading for help. Early this morning, the family received a call from a New York cab driver. He said the girl was in his cab and in shock.

A short time ago, I spoke with Jersey City's police chief.

(BEGIN VIDEO CLIP)

CHIEF ROBERT TROY, JERSEY CITY POLICE: Natasha is with her parents. And the situation is ongoing.

There were some allegations made by Natasha concerning New York, so we have the referral to the NYPD. They did a great job and they're holding her.

She's being evaluated mentally and physically at the hospital. And we look forward to talking to Natasha by the end of the day.

(END VIDEO CLIP)

KAGAN: The girl is expected to return home later today. The police investigation continues.

"The Boston Herald" reports that a New York bouncer who has been questioned in the murder of a graduate student could be charged today on unrelated sexual assault charges. Darryl Littlejohn is being held on a parole violation. He's been questioned in the death of Imette St. Guillen, a customer at the bar where he worked.

CNN has crews at the courthouse. We'll have more on this as it develops.

Three years probation, that is the sentence for former Washington mayor Marion Barry today. He admitted in a plea deal he did not file tax returns from 1999 through 2004. Barry is on the hook for around $250,000 in taxes. He told the judge today that he is broke.

A victim of last year's courthouse shooting rampage in Atlanta says she will sue if the county doesn't pay up. The sheriff's deputy was overpowered and had her gun taken before inmate Brian Nichols allegedly went on to kill four people.

Deputy Cynthia Hall suffered a brain injury in the beating. Her attorney says she's living in near poverty and will sue the county and its's sheriff department for $3 million if they don't settle with her.

In New Orleans, another Katrina response snafu. This one affecting K-9 teams searching for bodies still buried in debris. One frustrated unit is heading home to Maine. The reason, no one bothered to make hotel arrangements for the team.

Earlier this morning, I spoke on the phone with Major Greg Sanborn of Maine's Warden Service (ph).

(BEGIN VIDEO CLIP)

MAJ. GREG SANBORN, SEARCH TEAM SUPERVISOR: It actually goes a little bit deeper than just a hotel room. There's some items that are -- that are logistical support for the K-9 teams that are just not there.

The last time they were deployed in November, Buddy, which is Warden Carter's (ph) dog, became injured and he was immediately operated on by what was called the v-mat (ph) system, which is a mobile veterinary hospital. And the dog was able to be put right back in service.

That's not there this time.

(END VIDEO CLIP)

KAGAN: Louisiana is currently negotiating for a body recovery team from Shreveport which could be on the ground by tonight.

Potential of severe weather around the Arkansas area. Let's check in with Reynolds Wolf.

(WEATHER REPORT)

KAGAN: The future is at your fingertips. At least according to folks at today's high-tech unveiling. This is the source of the buzz, a miniature laptop that doesn't need a keyboard. Microsoft teamed up with electronics maker Samsung and chip maker Intel to create the compact touch screen device. It's due to hit stores in April and it costs less than $1,000.

Medicare recipients, are you still confused about the new prescription drug program? We want to hear from you. E-mail us at livefrom@cnn.com. Dr. Mark McClellan, head of Medicare and Medicaid coverage, will answer your questions at the top of the hour on "Live From."

Meanwhile, YOUR WORLD TODAY continues after a quick break. I'm Daryn Kagan.

(COMMERCIAL BREAK)

ZAIN VERJEE, CNN ANCHOR: Welcome back to YOUR WORLD TODAY here on CNN International. I'm Zain Verjee.

JIM CLANCY, CNN ANCHOR: I'm Jim Clancy and these are some of the stories that are making headlines around the world.

A former teacher armed with a gun took 18 students and two teaching assistants hostage at a high school near Le Mans, France. A woman's at the city's education office telling CNN in a phone interview that one of the teaching assistants, a man, had called her from inside the classroom. He reported that the gunman was calm and had even put down his weapon and that he had promised to let them go unharmed.

VERJEE: The U.S. secretaries of defense and state and top military and foreign affairs leaders are making a rare joint appearance on Capitol Hill. They're pushing for a passage of a $91 billion emergency spending bill. It's essentially for operations in Iraq, Afghanistan, as well as Hurricane Katrina recovery efforts in the United States.

CLANCY: Iran's president says the era of bullying is over and his country will not be intimidated into giving up its nuclear program. Mahmoud Ahmadinejad rejected Iran's referral to the U.N. Security Council saying it was unjust. The counsel expected to take the issue up next week, deciding whether to impose sanctions on Tehran.

VERJEE: Iran's also trading sharp words with Washington. Tehran blames the U.S. for leading the charge against it just. Just a short while ago, U.S. Secretary of State Condoleezza Rice said Iran may be the single greatest challenges to the United States today. David Ensor has more from Washington.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN CORRESPONDENT, (voice over): With Iran referred to the United Nations where it could face punishment for its nuclear programs, the war of words is escalating fast.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: The international community is prepared to impose meaningful consequences.

JAVAD VAEEDI, SUPREME NATIONAL SECURITY COUNCIL: The United States may have the power to cause harm and pain, but it also susceptible to harm and pain. So, if the United States wishes to choose that path, let the ball roll.

ENSOR: In House hearings, administration officials made clear the breathing period is over for Iran to consider the broad international coalition a raid against it and to reconsider its uranium enrichment plans.

NICHOLAS BURNS, U.S. UNDER SECRETARY OF STATE: The 30 days are up and we believe that next Monday or Tuesday, the United Nations Security Council will begin a very active debate about Iran's nuclear ambitions.

ENSOR: Officials said Iran appears to have been using the time to speed ahead with what the U.S. says is work towards a nuclear bomb.

ROBERT JOSEPH, U.S. UNDER SECRETARY OF STATE: It has, since January, put both feet on the accelerator. ENSOR: There was skepticism in the hearing about the president's endorsement of a compromise proposal. Russian President Putin's offer to give Iran nuclear reactor fuel and then take it back before it can be reprocessed into bomb-grade material.

TOM LANTOS, U.S. HOUSE DEMOCRAT: Giving Putin's aparatchnik's (ph) control of this process would be putting the fox in charge of the henhouse.

ENSOR: But the U.S. knows it does not now have the votes in the U.N. Security Council for tough economic sanctions. Officials say next week they will seek support first for a statement calling on Iran to give into the demand for a uranium-enrichment freeze.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

CLANCY: Harsh words have flown back and forth. We've heard Iran now suggest it could inflict harm and pain on the United States for its campaign against Tehran's nuclear program. One possible punitive measure, though many people think it unlikely, might involve oil exports. William Halligan (ph) explains.

(BEGIN VIDEOTAPE)

WILLIAM HALLIGAN, CNN CORRESPONDENT, (voice over): It's hard not to notice. Iran, just like Iraq, has vast reserves of oil and gas. With energy prices spiraling worldwide, that gives the country genuine power. "We will not do so now," said Iran's supreme national security council, "but if the situation changes, we will have to review our oil policies." Is this a warning to western powers to handle Iran with care?

VALERIE MARCEL, ROYAL INSTITUTE FOR INTERNATIONAL AFFAIRS: If these words translate into action, it's very serious, very serious implications for consumers of energy around the world. We'll see if those -- that is the strongest voice, the loudest voice in the Iranian spectrum. There are other people talking, other people saying, more in moderation, more foreign investment, so we'll see how that plays out between the security agenda and the energy agenda.

HALLIGAN: Iran's a leading member of the OPEC oil producers cartel. Its state oil industry exports 3 million barrels daily. Such supplies could be restricted, we learned today, if the current nuclear standoff cease trade sanctions imposed on Iran. Such retaliation would pose a significant threat to western economic growth.

So just how large are Iran's energy reserves? Well, Saudi Arabia, with 264 billion barrels of proven reserves, is the most oil- rich member of OPEC. Iran with 132 billion comes second. That's above Iraq and Kuwait in third and fourth place. But it's when you look at gas that Iran's importance becomes clear. With 27.5 trillion cubic meters of gas, Iran tops OPEC's gas league (ph). Qatar, already a major supplier to Europe, comes second, and Saudi and the United Arab Emirates are third and fourth in the gas stakes. But a gas minnows compared to Iran.

This OPEC meeting, also in Vienna, Iran played down using its energy muscle to threaten western economies. The country's own oil minister said that outcome was hypothetical. But still, leading energy analysts say Iran's mighty reserves give it the upper hand in any battle of wills with the west.

MARK SPELMAN, ENERGY CONSULTANT, ACCENTURE: I think Iran, with its oil and gas, is in a stronger position because the world economic growth needs oil and gas in order to be able to sustain that growth on an ongoing basis. China and India are going to keep sort of growing. That means more demand for oil and gas. And I think the ability of the Americans to really impose sanctions in a way that work, particularly when you got underlying economic growth in other parts of the world, is going to be very difficult to achieve.

HALLIGAN: By even raising the energy issue, Iran's added a new dimension to an already complex row (ph). And today news to Iran's to build a gas export pipeline to Asia, a source of further discomfort to the west. Some say this standoff is all about oil and gas. Even if it isn't, energy security is now explicitly on the table.

(END VIDEOTAPE)

CLANCY: This just coming in to CNN. We're getting word from the U.S. military of a surprising announcement. This announcement says that all prisoners being held by the coalition in Iraq at the Abu Ghraib Prison, a notorious prison during the time of Saddam Hussein and one that has really been hit hard by charges of abuse by U.S. troops in the past, is going to be shut down. All prisoners are going to be moved to a new facility that is currently being built.

Once again, the U.S. military saying all the prisoners in Abu Ghraib west of Baghdad going to be taken out of that and placed in a new facility that is currently under construction. Details of this just coming to light right now. We'll bring you up to date on more as they come in.

VERJEE: We want to go back, now, though, to the nuclear standoff with Iran. And the United States, of course, weighing its options as the dispute with Iran appears to be escalating. One path its already pursued involves pressuring the U.N. Security Council to impose sanctions. A travel ban or asset freeze against top officials in Iran could greatly isolate Tehran. Another option is air strikes against Iran's nuclear infrastructure. Analysts point out that that would be highly unpopular with many U.S. allies. And, of course, full-scale military action is always a powerful theft, but is it really a viable option? We want to get some perspective and some answers from John Pike. He's the director of GlobalSecurity.org and he joins us now from Washington.

Thanks for being with us.

We always hear military option. It's always on the table. But is it really a realistic option? JOHN PIKE, GLOBALSECURITY.ORG: Well, the Israelis, for the last 15 years, has been modernizing their air force in order to give them the ability to strike targets in Iran. The primary requirement for all of their new airplanes that they've been buying is that they be able to fly unrefueled to the distance of these targets in Iran and return safely to Israel.

Certainly, the United States has been looking at new munitions that would be able to penetrate even the most deeply buried of the targets in Iran. We're basically looking at half a dozen major targets that are isolated from population centers, for the most part above ground. It would be far more difficult than Israel's strike against Iraq in 1981. But I think that both the United States and Israel regard air strikes as being a very realistic option.

VERJEE: It would be hugely unpopular with U.S. allies.

PIKE: Well, it would be tremendously unpopular at a lot of places and it would probably get more unpopular once Iran starts retaliating. I don't think that Iran would cut off its nose to spite its face with cutting off oil exports, but you could certainly imagine terrorists strikes against American troops in Iraq, possibly, quite possibly even terrorist strikes against civilian targets here in the United States. Yes, it could be quite unpopular.

VERJEE: Iran could also create more trouble for the U.S. in Iraq.

PIKE: Well, absolutely. I mean I think that that would be a substantial risk that the American project in Iraq would founder over Iran's retaliation and it certainly has a number of ways of influencing the situation in Iraq. That's a very real risk that they're going to have to weigh carefully. Balanced against it, however, is the opportunity for Iranian mischief making given a credible nuclear capability. They have to worry about that as well.

VERJEE: The U.N. Security Council's expected to take up the issue on Iran's nuclear program next week. Do you think that anything that happens over at the U.N. Security Council will be effective?

PIKE: I don't think so.

VERJEE: Why?

PIKE: The Security Council took up the North Korean nuclear question three years ago and basically has done nothing. The only things that I think would be really effective are going to be blanket sanctions on Iran and China has already said that they're simply not going to go along with that. With China's dependency on Iranian gas exports, as we heard in that previous piece, it's just not going to happen.

VERJEE: What about the Russians? They have a veto at the U.N. Security Council as well and they're playing an increasingly influential role with Iran. PIKE: Well, the Russians are trying to come up with some sort of deal that would satisfactory western concerns, as well as Iranian interests. I think that it's unlikely, at the end of the day, to satisfy American concerns, which basically are that Iran simply can't be trusted with this technology.

VERJEE: John Pike with some good perspective, with GlobalSecurity.org. Thanks so much for being with us.

PIKE: Thank you.

VERJEE: We're going to take a short break. YOUR WORLD TODAY will continue in just a moment.

CLANCY: Stay with us.

(COMMERCIAL BREAK)

VERJEE: Welcome back to YOUR WORLD TODAY here on CNN International. The U.S. military will close the notorious Abu Ghraib Prison possibly even within three months. Let's go to Aneesh Raman in Baghdad. He joins us now for more details.

Aneesh.

ANEESH RAMAN, CNN CORRESPONDENT: Well, Zain, a U.S. military official in charge of detainee operations says the U.S. military will hand over, not necessarily close, Abu Ghraib Prison, handing over that facility to Iraqi control. In doing so, they will relocate the some 4,500 prisoners that are currently under coalition custody to another site that is being built called Camp Cropper (ph). That, they say, will take a number of months, some two to three months to accomplish the building of.

So again, what they are saying is that Abu Ghraib Prison will remain. It will change hands, though, going from U.S. control to fully Iraqi control. And because of that, they are going to transfer the detainees that are under U.S. custody, under coalition custody, to this new site.

Now Abu Ghraib, of course, a prison that has been the source of immense controversy here after the photos that were shown of abuse by U.S. soldiers of detainees there. Since then, it has been consistently a source of contention for Iraqis who say many of the detainees are being held really without charges that are based on -- they say charges that are baseless. And we've seen a number of detainee releases over the past few months, people that have been held at times for up to two years and they're not told when they leave why they were held.

But again, we got word from the U.S. military, they will hand over Abu Ghraib Prison after transferring the prisoners that are under their custody sometime in the next two to three months.

Zain.

VERJEE: Aneesh Raman in Baghdad. Thanks, Aneesh.

Jim.

CLANCY: Ancient treasures being dug up in Egypt have not been all that unusual in the past. Stunning, yes, but people expected them. But a new find is surprising even for some of the most experienced researchers. Now Kathryn Bard fits right into that category. She is also a professor of archaeology at Boston University. She's here to tell us a little bit of a story about what she found when she reached into a hole two years ago.

Tell us this story.

KATHRYN BARD, PROFESSOR, BOSTON UNIVERSITY: Hi. On Christmas morning 2004, I was with a student of mind, Chen Sean Lin (ph), and we were starting the first day of excavations. He asked me, where should we work? And I looked around on the ground and I saw a cluster of pottery and I said, well, let's work up there on the slope above where the pottery was resting. And less than an hour after we started clearing sand from this slope, I saw a hole. I reached my hand in and this was the first of six caves now that we have found. And the caves we now realize were used for storage for ships and parts of ships in expeditions that were sent to the southern Red Sea about 4,000 years ago.

CLANCY: All right. Now where were they, right by the seashore?

BARD: Well, the present-day seashore is about 700 meters from where it was located in ancient times, at least we think that's the case. So the harbor area that we're excavating is considerably inland today.

CLANCY: And located where in Egypt?

BARD: This is on the Red Sea coast. It's about 15 miles south of the modern port of Sfaga (ph).

CLANCY: All right. Now so you found the stores, ship stores, really.

BARD: Yes.

CLANCY: And well preserved. What story did they tell us about the past, about the trade, about the history of Egypt in our world?

BARD: Well, what they tell us, first of all, is important information about ship-building technology, that it was much more sophisticated than we had thought previously. Cheryl Ward (ph), who is a nautical archaeologist at Florida State University is studying the ship-building techniques. We also know that they were importing materials from the southern Red Sea and we have good evidence of that now, whereas previously we only had mainly textural information about these expeditions.

And clearly these were highly organized expeditions. One text describes over 3,700 men involved in the expedition. All of the parts of ships and the supplies and food had to be taken across the eastern desert on about a 10, 11-day trek to this seaport site. The ships were reassembled there and then they sailed about 1,300, 1,500 kilometers south to the southern Red Sea region. So this was a highly organized activity. It was all done for -- at the orders of the king, really.

CLANCY: Now, when we look, and it's so fascinating, you talk about the texts here. Are these the Phoenicians? What is the language that is used in the text? Can you trace that back to Biblos (ph) in Lebanon, for example? And, to you, what's the most amazing thing here, that people should stop perhaps today in our busy lives and pause and say, we learned something. We learned something about ourselves.

BARD: These texts are more than a thousand years earlier than the Phoenicians and they are in Egyptian hieroglyphs.

What can we learn today? We can learn today that peoples who lived 3,000, 4,000 years ago could be just as organized for large- scale projects as we are today in many respects.

CLANCY: All right. We have to go. We have to leave it there. I want to thank you very much for being with us. Kathryn Bard of archaeologists there with Boston University. Fascinating story. What a Christmas surprise that must have been.

BARD: Yes, it was. Thank you.

CLANCY: Thank you.

Well, coming up, we're going to open up the -- are we going to have time to open the "in box"?

VERJEE: Yes, we'll do that after the break.

CLANCY: All right.

(COMMERCIAL BREAK)

CLANCY: Welcome back.

Opening up the "in box." Our question was, is President Bush a lame duck?

Zain.

VERJEE: Here's how some of you replied. We got some good e- mails.

A viewer in Connecticut says, "Bush is a lame duck president for the trouble he's caused Americans on military and our friends abroad. He is an impeachable lame duck."

CLANCY: An anonymous viewer writes this. "He is not a lame duck, he's a sitting president with minimal leverage in Congress because he has angered American voters." Overwhelmingly a lot of people said he is a lame duck. Like it or not, that's the way the music's playing out. That's the way the news plays out right now. I'm Jim Clancy.

VERJEE: And I'm Zain Verjee.

(COMMERCIAL BREAK)

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