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Bush/Al-Maliki Summit; Al-Sadr's Threat; Iraq Strategy; Wild West Weather; Home Sales

Aired November 29, 2006 - 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: Crisis talks. President Bush meeting with Iraq's prime minister today and it comes amid a new bombshell report bout the prime minister's ability to achieve peace in Iraq.
MILES O'BRIEN, CNN ANCHOR: Papal pilgrimage. Pope Benedict XVI already winning praise in Turkey and facing a critical test today.

S. O'BRIEN: And wintery bliss. A deadly mix of snow and ice on the roads with dramatically colder temperatures settling in from the Rockies through the Midwest on this AMERICAN MORNING.

Good morning. Welcome, everybody. Wednesday, November 29th. I'm Soledad O'Brien.

M. O'BRIEN: And I'm Miles O'Brien. Thanks for being with us.

S. O'BRIEN: Let's begin this morning with the very latest developments out of Iraq. Here's what's new.

President Bush is meeting with Iraq's prime minister today about his plan for getting Iraq under control. The president leaves the NATO summit in Latvia in the next two hours for that meeting in Jordan.

A newly revealed memo shows that the White House has big doubts about Prime Minister Nuri al-Maliki and his ability to truly lead a unified government.

And a report says the Pentagon is considering moving troops out of the al Anbar province and sending them back into Baghdad. That's according to ABC News.

Plus, the Iraq Study Group meets again today. They're trying to work out just how many troops should be in Iraq and how long those troops should stay there. We've got three reports for you this morning. Suzanne Malveaux is traveling with the president in Riga, Latvia. Arwa Damon is in Baghdad for us. And Bob Franken is in Washington. Let's begin with Suzanne and the president in Latvia.

Good morning, Suzanne.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Good morning, Soledad.

As you know, the NATO summit is wrapping up, but all the talk is about this five-page classified memo that was leaked to "The New York Times." A senior administration official says, in fact, it is authentic. What this is, is really a memo from the National Security Adviser Stephen Hadley shortly after he met with Iraqi Prime Minister Nuri al-Maliki in late October and it calls into question Maliki's ability to really end or control the sectarian violence in his country.

It goes on to say making essentially this point. That it says that "Maliki's intentions seem good when he talks with Americans. Sensitive reporting suggests he is trying to stand up to the Shia hierarchy and force positive change." But then it goes on to say that the reality on the streets of Baghdad suggests "Maliki is either ignorant of what is going on, misrepresenting his intentions, or that his capabilities are not yet sufficient to turn his good intentions into action."

It goes on to make recommendations, Soledad. First, steps that Maliki could take to "bring his political strategy with Muqtada al- Sadr to closure." The Shia militia leader. To "shake up his cabinet" by appointing neutral players. This is something also the report says the U.S. would support. Those moderate leaders in his cabinet. And then finally announcing "plans to expand the Iraqi army" over the next nine months.

What the United States can do immediately to help, is says, "let Maliki take more credit for the positive developments" instead of having him react and exert his power by reacting against the United States, pushing back against the coalition. Also continuing to "pressure Iran and Syria to end their interference in Iraq," including, what this memo says, is a meeting with Secretary of State Rice, holding some sort of Iraq plus neighbors meeting in the region in late December. It is not clear whether or not that meeting would actually include Iran. And then finally, stepping up our efforts to "get Saudi Arabia to take a leader ship role" by using its influence over Sunni.

We have already seen this, Soledad, put into place. Vice President Cheney in Saudi Arabia, meeting with the king just last weekend. And finally, another very important point to mention, this memo says, we might also need to fill the current four (ph) brigade gap in Baghdad with coalition forces if reliable Iraqi forces are not identified.

Now senior administration officials have been talking to us this morning, essentially downplaying this memo saying, look, what this is, is not a slap in the face, according to one senior administration official, but rather a look at the capabilities, not Maliki's intentions. So there's a lot that's out there. This is an administration that does not like to publicly criticize Maliki, but clearly a lot of points in this memo and some serious doubt whether Maliki has the capabilities to turn things around.

Soledad.

S. O'BRIEN: Suzanne Malveaux is traveling with the president.

Thanks, Suzanne. Miles.

M. O'BRIEN: The leader of Iraq's most feared Shiite militia, Muqtada al-Sadr, standing by his threat to pull his faction out of the Baghdad government simply because al-Maliki is willing to meet with President Bush. CNN's Arwa Damon is in Baghdad with more.

Arwa.

ARWA DAMON, CNN CORRESPONDENT: Miles, good morning.

And that threat was reiterated by the leader of Muqtada al-Sadr's political block, Falach Shenshed (ph). Essentially the political block is threatening to suspend its activities in the government if that meeting goes ahead. Obviously, all indications are that it will.

Now whether or not Muqtada al-Sadr's political block makes good on the threat, that remains to be seen. So far, Iraq's national security advisor, Muwaffaq al-Rubaie, dismissed the threat, saying this was just Muqtada al-Sadr's group trying to flex its political muscle.

But, Miles, the group does have a fair amount of influence and power here. If we just look at its political power, they hold 30 seats in parliament. They control six ministries. The prime minister essentially owes them his job.

If we look in terms of military might, the Mehdi militia, which is loyal to radical Shia cleric Muqtada al-Sadr, is out there. It is armed. It operates in areas in Baghdad and all over the entire country. For the most part, it tries to provide security in its neighborhoods. But at the same time, it is believed to be responsible for a lot of the sectarian killings that happen here.

Now one of the main issues to be brought up between the meetings with Prime Minister Nuri al-Maliki and U.S. President George Bush is the very issue of disarming those militias and how does Iraq proceed in that direction. The prime minister so far has been looking and hoping for a political solution, but many here believe that now might be the time for military action.

Miles.

M. O'BRIEN: Arwa, was there ever any contemplation, any thought that Maliki would not attend the meeting with President Bush?

DAMON: The indications that we had from the White House, communications that we had from the Iraqi government, were never that he really was considering not attending that meeting. Remember, at the same time, it is vital for the prime minister to continue to maintain a solid and working relationship with the United States. This is not a point in time where he can really afford to alienate the United States.

Now that being said, though, we have not had a direct reaction from the Iraqi government to this threat on Muqtada al-Sadr part, in part because over the last few days the Iraqi government has taken a decision to speak less with the media. They realize the sensitivity of the situation. There has been all sorts of political bickering going on amongst politicians. They want to keep that to a minimum, trying to put forward this face of national unity.

Miles.

M. O'BRIEN: Arwa Damon in Baghdad, thank you.

Soledad.

S. O'BRIEN: Another major story taking shape this morning in Iraq. The U.S. military is reportedly considering a plan to pull 30,000 soldiers and Marines out of the volatile Anbar province and send them to Baghdad. That's according to ABC News. The Pentagon has suggested that the Anbar province is to violent a place to ever achieve victory and it's largely controlled by al Qaeda in Iraq. More than 1,000 U.S. troops, in fact, have been killed in that province.

Here at home, in Washington, the blue ribbon panel that's studying U.S. strategy in Iraq is facing its own set of changes before they make the final recommendations. AMERICAN MORNING's Bob Franken live for us in Washington, D.C.

Good morning to you, Bob. What challenges exactly?

BOB FRANKEN, CNN CORRESPONDENT: Well, to come to a consensus. Mainly a consensus on how to formulate the plans on what to do with U.S. troops. The president has made it clear that he's not going to withdrawal them on any timetable, so how do they finesse that? And finesse is what they're trying to do with strong indications from inside that they're coming up with some timetable that's going to be tied to the proper training of Iraqi forces, and that's going to leave a lot of people to say, gee, why didn't we think of that? Of course, saying that sarcastically.

By the way, Soledad, if you believe that the leaking of that memo from Stephen Hadley, which disparages Maliki is coincidental to the meeting with al-Maliki, then I have some land in Baghdad for you.

S. O'BRIEN: Not so interested in that, thank you.

Let me ask you a couple of questions. What recommendations are we hearing are going to be most likely and when will we expect to hear those recommendations? Those are kind of the two big questions.

FRANKEN: Well, two big questions. The one that we hear consistently is that there's going to be some sort of formulation that talks about dealings with Iran and Syria, which is difficult if it's a public, direct kind of dealing because Iran, of course, is part of the axis of evil. The administration spokesman also calls Syria, just beyond the axis of evil. So suddenly the axis is going to be important, as far as the commission is concerned, to what ultimately happens to their neighbor, Iraq.

The other things, as far as the timing is concerned. Well remember Congress comes back next week. There is a clear picture that the study group is hoping to have this ready to go before Congress leaves before the end of the year.

S. O'BRIEN: Bob Franken for us this morning.

Thank you, Bob.

Miles.

M. O'BRIEN: Those controversial CIA flights to capture and question top terror suspects in Europe were apparently not a very closely held secret. Apparently 11 European countries knew what the CIA was up to. ABC and BBC News reporting the CIA conducted about 1,200 secret flights in Europe. A draft report to the European parliament lists flights to Germany, the U.K., Portugal, Spain and Italy. The report contends some European governments were fully aware of the so-called rendition flights, even though they're against European law. President Bush has acknowledged the CIA held terror suspects in secret prisons.

Soledad.

S. O'BRIEN: Snow, ice, and dangerously cold weather across the Rockies to tell you about this morning. The roads turning deadly for at least four people on Colorado highways. CNN's Rob Marciano is in Breckenridge, Colorado, this morning.

Good morning, Rob.

ROB MARCIANO, CNN CORRESPONDENT: Good morning, Soledad.

This storm swept in here quite rapidly yesterday, dumping snows in the amounts of nine, 10 inches during the day and then overnight last night. In some spots getting upwards of two feet of snow at the higher elevations. Unfortunately, the roads are slick.

And as you mentioned, a fatal accident down the road on I-70, about 35 miles west of Denver, there were 15 people in a mini van believed to be illegal immigrant, four of which died in that crash. Another 10 were brought to an area hospital. The driver actually fled on foot, was later apprehended and treated for his injuries. So bad news there for sure. I-25, numerous accidents in and around the Denver area because of slick roads.

Up and over the mountain passes, you need 4x4 or chains. They are required. I can tell you from our experience driving up here in the middle of the night, the roads are indeed slick and slow. Any sort of travel, even with 4x4, takes two to three time what it normally would.

We're sitting at about 9,600 feet in elevation here in Breckenridge. I mean the flip side of this story, which is, you know, it's a tough go for a lot of folk, is that it's a beautiful sight, especially as we head towards the holidays. This is main street in Breckenridge, where they're all lit up here and everything's painted with white. And, obviously, ski operators are loving the fact that they got a nice blanket of snow to get off to a really good start here in the Colorado Rockie. Not only in Colorado, but also in Utah, in Idaho. And as you know, this storm started in Washington state with a rare early season, heavy snowfall in and around the Puget Sound area. So it's been setting records, so to speak, across many states.

Winter storm warnings are still posted for this area through noon today. They had about 10 inches of snow here in Breckenridge. Two feet in Aspen. Higher amounts are expected east of the Continental Divide as we go on through this afternoon.

But the bigger story may very well be the cold air. Right now it's one degree with a balmy south wind at 19 miles an our. In exposed areas, that brings the wind chill down to about minus 15. We'll see that actual low temperature tonight. Tomorrow's actual high temperature expected to be four degrees. It's going to be great.

Guys, back to you.

S. O'BRIEN: Great for the skiing, not so great if you're trying to drive it.

All right, Rob Marciano for us this morning.

Thanks a lot, Rob.

And Chad's going to join us in just a couple of moments with the forecast for the rest of the country. That's straight ahead.

Miles.

M. O'BRIEN: Well, if it wasn't arson, then what was it? Getting to the bottom of a deadly fire at a group home in Missouri. We'll have details on that.

And the dog is collared again. Snoop's latest run-in with the law. We'll have details for you when AMERICAN MORNING returns.

(COMMERCIAL BREAK)

S. O'BRIEN: Welcome back, everybody. Some of the top stories we're following for you this morning.

China and the U.S. holding another meeting with North Korea. They're trying to get the North back into talks aimed at ending that country's nuclear weapons program.

And Cuban Leader Fidel Castro says he is still too sick to attend celebrations this week that are marking his 80th birthday.

It's 14 minutes past the hour. If you're about to head out the door, Chad Myers has a look at the traveler's forecast for you.

Good morning, Chad.

(WEATHER REPORT)

M. O'BRIEN: Happening in America.

Investigators in Missouri poised to rule out arson as a cause of that deadly fire at a group home in Anderson. Ten people were killed. Investigators say there are no suspects or persons of interest in the case. Three dozen mentally ill patients, most of them elderly, lived in the home.

In New Mexico, new security concerns at the Los Alamos nuclear weapons lab. A government ordered review calls security there seriously flawed. The review was ordered after police found classified documents at a former lab worker's home.

And Snoop in the dog house again. Police in California arrested Calvin Broadus, a.k.a. Snoop Dogg, last night after he performed on the "Tonight Show" with Jay Leno. Police say they seized a handgun and some illegal drugs. Bail was set at $60,000. Chump change for Snoop.

In Washington, a ruling about your money. A federal judge says there should be a way to tell a dollar bill from a 20, from a 50, to help blind folks. Judge James Robinson ordering the Treasury Department to come up with a way to distinguish one bill from the next if you can't see.

S. O'BRIEN: One of America's largest pharmaceutical company is about to get a little bit smaller. Cutbacks are coming at Pfizer. Ali Velshi is "Minding Your Business" coming up next.

And then caught in this web. We'll tell you the surprising results of a new survey about just how much time your kids are connected. That's when AMERICAN MORNING turns. We're back in a moment.

(COMMERCIAL BREAK)

S. O'BRIEN: It used to be mom and dad were worried about how much time kids were watching TV. Now some new and very surprising numbers on how much time the kids are spending online. The survey comes from the University of Southern California. It shows that one in five parents think their kids spend too much time online. No surprise there. Internet use, though, overall by kids and adult jumping 11 percent from the year 2000. The survey also shows that 68 percent of homes now have Internet access. People are spending more time online -- 14 hours a week. That's up five hours a week from last year. That's significant.

M. O'BRIEN: You know what's interesting about that study, though? With broadband, it's in little tiny doses of time. It used to be with dial-up, you'd dial up for . . .

S. O'BRIEN: Right.

ALI VELSHI: And then you'd stay there.

M. O'BRIEN: Yes, you stayed there . . .

S. O'BRIEN: Sixty percent of the time was waiting.

VELSHI: Yes, now the computer's on all the time.

M. O'BRIEN: Right. It's two minutes at a time.

VELSHI: Yes.

M. O'BRIEN: Anyway. Ali Velshi, good morning to you.

VELSHI: Good morning to you.

M. O'BRIEN: What's going on in the business world?

VELSHI: Pfizer, the granddaddy of pharmaceutical companies, is cutting 20 percent of its sales force. Now in the pharmaceutical company, the sales force is a big deal. They have 11,000 sales workers at Pfizer, 2,200 of them losing their jobs. It's part of a program by Pfizer to cut costs by $4 billion in the next couple years because the company is predicting that sales are going to be flat. They've lost patents on some of their drugs. Zoloft, the anti- depressant, is off patent now. Norvasc, the blood pressure drug, going off patent next year. Lipitor, the big cholesterol drug, still good till 2010, 2011. And there are a couple new drugs in the pipeline for Pfizer. Sutent is a cancer treatment and Torcetrapib, which is a cholesterol treatment, but some studies have shown that that the new cholesterol treatment raises blood pressure in some patents. So analysts are a little unsure as to what . . .

M. O'BRIEN: Torcetrapib.

VELSHI: Torcetrapib.

M. O'BRIEN: The people that come up with these names.

VELSHI: I'm kind of thinking that they're going to change that name when they get to the market, but who knows.

M. O'BRIEN: Maybe so. Yes.

VELSHI: Two big speeches on the economy. Don't change the channel. They're interesting.

Ben Bernanke, the head of the Federal Reserve, was at the National Italian American Foundation yesterday speaking. It's always a good meal there. It's a tradition for Fed chiefs to go there and speak. He said economic growth is going to be moderate, inflation will continue to ease.

We've already seen that because gas prices and oil prices are down. But there are some risks, because the economy -- because the unemployment rate is low, growth could be faster. That could case inflation, which means the Fed might not be done raising interest rates. The other big deal is housing prices, where do they go right now. Yesterday we found out that the median price of a home in the United States, $221,000. That's down 3.5 percent from where it was a year ago.

That was a surprise. People didn't expect housing prices to be lower. Alan Greenspan, in another speech yesterday said, we may not have seen the end of that yet. We may see slowing housing prices.

The stock market seemed to ignore both of those things. The Dow was up about 14 points to 12,136. The Nasdaq was up as well. And we'll see what happens with the stock markets today.

M. O'BRIEN: So Greenspan still speak and we still listen.

VELSHI: We still listen. Smart guy.

M. O'BRIEN: Listen. Yes. All right.

VELSHI: Hey, listen, when I come back, I want to talk to you about the choice between a holiday party and a holiday bonus. Which one do you want?

M. O'BRIEN: Oh, I'll take the bonus.

S. O'BRIEN: Yes, I always go for the cash.

M. O'BRIEN: Always take the cash and then we'll go for drinks.

S. O'BRIEN: That's right.

VELSHI: Yes, exactly.

S. O'BRIEN: We can have our own little party.

VELSHI: Yes.

S. O'BRIEN: You know, picking up what you said about the housing market, a little good news, bad news for the housing market to tell you about. The home sales rebounded, as you mentioned, last month, a little bit at least. The not so good news, though, is that if you're a seller, the prices are not what they used to be. Dan Lothian has our report this morning.

(BEGIN VIDEOTAPE)

DAN LOTHIAN, ABC CORRESPONDENT, (voice over): Dennis and Ann Ogen (ph) recently bought a home in the uptown section of New Orleans.

DENNIS OGEN, HOUSING BUYER: I think we got a pretty good deal. And from what I'm seeing now, it's -- I'm even happier with the deal that we got on the house.

LOTHIAN: They moved from Colorado after more than 12 years, something they had planned to do before Katrina.

ANN OGEN, HOUSING BUYER: We just wanted to be closer to family. We wanted to be closer to our parents and back with our friends.

LOTHIAN: The Ogens paid more than they wanted to, but less than the asking price. And they negotiated some extra repairs.

UNIDENTIFIED FEMALE: It's pretty much a motivation of the seller. If they're really motivated to sell, then you can have more negotiation.

LOTHIAN: Like New Orleans, a half dozen other cities, from Albany, to Houston, are showing signs of life, helping an overall shaky real estate market. After seven straight months of declines, the National Association of Realtors says existing home sales in October, edged up by a half a percent. The reason?

UNIDENTIFIED MALE: Buyers now are getting off the sidelines, they're coming back into the marketplace because sellers are more flexible.

LOTHIAN: In other words, they're lowering prices. Ann Ogen says nearby homes that had been idling on the market are suddenly being snapped up.

A. OGEN: It would lead me to believe that there's a lot more negotiations going on.

LOTHIAN: And that's where the bad news comes in if you're a seller. The median home price nationwide dropped last month to $221,000, down 3.5 percent from a year ago. Experts say prices in some markets will go lower before they rebound.

UNIDENTIFIED MALE: You are going to see some expansion, but certainly we're going to need a little more price correction for that to happen.

LOTHIAN: For people unwilling to drop their asking price any lower, it's a waiting game. Massachusetts resident Robert Burnham (ph) says his life is on hold.

ROBERT BURNHAM, HOUSING SELLER: Many people my age, they can't get out of their home to retire.

LOTHIAN: Dan Lothian, CNN, Boston.

(END VIDEOTAPE)

S. O'BRIEN: Coming up, a look at the day's top stories.

Also, life imitating art for the teen star of the activity story. A twist on the greatest story ever told straight ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: Power summit. President Bush to meet Iraq's prime minister today. They'll discuss a plan for peace. A new report says the prime minister might not be able to make it happen, though. S. O'BRIEN: Praise for Pope Benedict XVI in Turkey. But his efforts to win Muslim support face another tough test today.

M. O'BRIEN: And who knew what and when. New information about those secret CIA flights to capture and question terrorist suspects on this AMERICAN MORNING.

S. O'BRIEN: Welcome back, everybody. It is Wednesday, November 29th. I'm Soledad O'Brien.

M. O'BRIEN: And I'm Miles O'Brien.

S. O'BRIEN: Let's begin with the latest developments out of Iraq. Here is what's new.

President Bush meets Iraq's prime minister today about his plan for Iraq. The president leaves the NATO summit in Latvia just over an hour from now for that meeting which is taking place in Jordan.

A newly revealed memo shows that the White House has big doubts about Prime Minister Nuri al-Maliki and his ability to control the violence and lead a unified government in Iraq.

And a report says that the Pentagon is considering moving troops out of the al Anbar province and sending them back into Baghdad. That's according to ABC News.

Plus, the Iraq Study Group meets again today. They're trying to work out just how many troops should be in Iraq and how long those troops should stay there.

Got two reports for you this morning. Suzanne Malveaux is traveling with the president in Riga, Latvia. Arwa Damon is in Baghdad. Let's begin with Suzanne who's with the president.

Suzanne, let's talk first and foremost about this memo. It was prepared for the president, written by the National Security Adviser Stephen Hadley. What do we know?

MALVEAUX: Well, essentially this is after a meeting they had in late October. It gives us impression of Maliki that was shared with the president in November and it expresses doubts about Maliki's ability to control the sectarian violence in his country. Essentially it says that his intentions seem good when he talks with American. Sensitive reporting suggests he is trying to stand up to the Shia hierarchy and force positive change. But the reality on the streets of Baghdad suggest "Maliki is either ignorant of what is going on, misrepresenting his intentions, or that his capabilities are not yet sufficient to turn his good intentions into action."

Steps that Maliki could take include "bring his political strategy with Muqtada al-Sadr to closure, shaking up his cabinet, or announcing plans to expand the Iraqi army."

What the Bush administration could do in the immediate steps here. "Let Maliki take more credit for positive developments, continue to pressure Iran and Syria to end their interference in Iraq, and step up our efforts to get Saudi Arabia to take a leadership role."

It also mentions, Soledad, the possibility of increasing troops, saying, "We might also need to fill the current four-brigade gap in Baghdad with coalition forces if reliable Iraqi forces are not yet identified."

Essentially what this says, going into the meeting, senior administration officials say, look, the president has confidence in Maliki. It's about his capabilities, what his government is able to do. And serious doubts going into this meeting, Soledad, whether or not Maliki is going to be able to pull this off and what it means for the Bush administration -- Soledad.

S. O'BRIEN: Suzanne Malveaux is in Latvia this morning traveling with the president.

Thanks, Suzanne -- Miles.

M. O'BRIEN: The leader of Iraq's most feared Shiite militia, Muqtada al-Sadr, standing by his threat to pull his faction out of the Baghdad government simply because Prime Minister al-Maliki is willing to meet with President Bush.

CNN's Arwa Damon is in Baghdad with more -- Arwa.

ARWA DAMON, CNN CORRESPONDENT: Miles, and that threat was reiterated by the leader of the head of his political bloc, Hassan Shanshal, reiterated yesterday. We first heard that threat at the end of last week. Muqtada al-Sadr's political bloc threatening to suspend its activities in the government if today's meeting goes ahead.

Now, the political bloc holds about 30 seats. It controls six ministries. And this really shows what a delicate situation the prime minister is in.

On one hand, he owes his position to the support of Muqtada al- Sadr's bloc. On the other hand, he cannot afford to alienate the United States.

Now, Iraq's national security adviser dismissed this threat, saying it was just the political bloc, al-Sadr's political bloc, flexing its muscle, but it really still does put the prime minister in a very difficult position -- Miles.

M. O'BRIEN: Arwa, the perception in the Sunni community is that al-Maliki's government, a Shiite government, does not allow enough Sunni participation in that government. What is the government doing there to try and change that perception?

DAMON: Well, Miles, we've opinion hearing this for quite some time now, a lot of complaints from Iraq's Sunni community, both on the political level and from Iraqi civilians that the government favors the Shias in this country. For the most part, the government has continued to put forward this face of "we're a government of national unity, we treat everyone equally." They say that they've distributed the power bases within the government equally, but at the same time, they are still trying to engage or say that they're trying to engage the Sunni community.

But at this point we are still hearing repeated threats from some Sunni political parties and members of the government that they, too, have threatened in the past to withdraw. So the prime minister right now is still trying to work and reach out to all of the political parties here -- Miles.

M. O'BRIEN: Arwa Damon in Baghdad.

Thank you.

Another sign of the grim picture on the front lines in the battle to control Iraq. The U.S. military is apparently pondering a retreat from the volatile Anbar Province.

ABC News reporting a plan to pull 30,000 soldiers and Marines out of the Sunni-dominated Anbar region and send them to Baghdad. The Pentagon has suggested Anbar is too violent a place to ever achieve victory. More than 1,000 U.S. troops have been killed there since the war began.

S. O'BRIEN: Accusations this morning about how much some European governments really knew about the secret CIA prisons and flights ferrying terror suspects. A draft report leaking out now from the European parliament.

CNN's Paula Newton is live for us in London this morning.

Good morning, Paula.

PAULA NEWTON, CNN CORRESPONDENT: Good morning, Soledad.

It has been a highly-charged issue here in Europe. And now, what was an independent parliamentary investigation by the European parliament has uncovered apparently that there were more than 1,200 flights from several European countries, and they claim that at least 11 European countries knew of the existence of these secret CIA flights.

And there with many of them, Soledad. In Germany, 336 stopovers; in Britain, the U.K., 170; Portugal, 91; Spain, 68; Italy, 46. I also want to note that in Ireland there were 147.

As we said, more than 1,200 in total.

You know, what's at issue here, Soledad, is how much these governments knew. And what really riles people here is whether or not they were appearing to do some of the dirty work for the United States and the CIA. If there were secret prisons, what was going on, what was the nature of the interrogations there, and whether or not the people in Europe were being kept in the dark about this.

Now, already, one legal adviser to Condoleezza Rice has told one newspaper that he thinks the entire report is hysterical in its tone and that many of these flights were indeed routine and not carrying prisoners, that it had to do with a courtesy for refueling or other needs as the work was going on between Afghanistan and the United States -- Soledad.

S. O'BRIEN: So, hysterical, but not a denial that the flights were happening. And has there been any reaction from the European countries that are named?

NEWTON: Not so far. I mean, a reminder that the Bush administration admitted in September that these prisons exist, they were empty. But they did not rule out having to use them again.

In Europe, in several countries, they have really been angered about this. That's mainly the opposition side of things. But governments have been so quiet, Soledad, really not showing their hand in any of this.

Specifically, the European parliament said that in fact countries like Poland had not cooperated with the investigation at all. They are encouraging every government to do their own investigation, draft their own reports, that anyone concerned in these countries can figure out just exactly what went on with the CIA and their government.

S. O'BRIEN: Paula Newton for us this morning.

Thanks, Paula -- Miles.

M. O'BRIEN: It's day two for Pope Benedict's fence-mending trip to Turkey. The pope winning some friends, saying Turkey should be allowed to join the European Union. That's a change of heart for Benedict, who opposed the idea before he became pope.

The pope is celebrating mass today in Ephesus, a town where it is believed Mary spent her final days after Jesus was crucified.

AMERICAN MORNING'S faith and values correspondent, Delia Gallagher, is in Istanbul and she joins us on the line right now -- Delia.

DELIA GALLAGHER, CNN FAITH AND VALUES CORRESPONDENT: Good morning, Miles.

As you said, the pope this morning is celebrating mass with some members of the very small Catholic community here in Turkey. They number about 35,000 in total.

And Ephesus, the town where he is, is an ancient Christian place. It's one of the places where the first Christian communities started -- St. Paul, St. John went there to start those communities after Jesus's death. And, of course, as you mentioned, it is also the place said to be the home of the Virgin Mary, who is also said to have gone there after Jesus's death from Jerusalem.

And what's interesting about this -- this house of the Virgin Mary where the pope is saying mass is that it's become a short of shrine not only for Christians, but also for Muslims, who, of course, recognize Jesus as a prophet and, therefore, recognize Mary as his mother. And it's really sort of a symbolic place now, not only for the history that it has in Christianity, but for this kind of interfaith dialogue, if you will, between Christians and Muslims.

So a very symbolic place today for the pope to go and say mass. And, of course, later this afternoon he'll be coming to Istanbul to meet with the orthodox patriarch. That was the person who invited him here in the first place, and one of the main priorities of this trip, to talk about Christian unity between Catholics and orthodox. So he will begin those discussions today, this afternoon, with the orthodox patriarch, Bartholomew -- Miles.

M. O'BRIEN: Delia, generally the pope is being well received. I hear there aren't a lot of crowds turning out, but generally his message being well received?

GALLAGHER: There's not a lot of crowds, Miles, but, you know, this is a predominantly Muslim country. I mean, it's not as if this is a papal trip in Poland or Spain, where you have people lining the streets.

So there haven't been major crowds as such, but there seems to have been a fairly favorable reception. Certainly yesterday there was a positive message from the pope when he spoke to the political leaders. He was received by the prime minister at the airport, which was something that was not guaranteed initially. It was a last-minute decision.

So it seems yesterday that the tone has been set for a sort of favorable dialogue, if you will, with the Muslims. The pope said on the plane coming over that part of the purpose of his trip was one of reconciliation. And so I think that that hints at some of the problems that he had after that Regensburg address, and he tried to sort of correct that in his speech yesterday in which he really emphasized some of the positive things about Islam and their relations with Christians and the importance of people of faith to work together in this new dialogue -- Miles.

M. O'BRIEN: Delia Gallagher in Istanbul as we look at live pictures of the pope saying mass there in Ephesus, Turkey.

Thank you, Delia.

Up next, a look around the world.

Should investigators being looking for a killer or for more victims in the poison death of a Russian spy?

And the infighting in Africa. Who wins the battle between two big African countries? Well, it's al Qaeda.

We'll explain when we come back.

(COMMERCIAL BREAK)

M. O'BRIEN: Here's a look at what CNN correspondents all around the world are covering today.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN SR. INTERNATIONAL CORRESPONDENT: I'm Matthew Chance in London.

A number of people are now being tested at a specialist London clinic amid concerns they may be contaminated with a highly toxic radioactive substance that poisoned the former Russian agent Alexander Litvinenko. The latest report says as many as 40 staff at the hospital where he was treated may be at risk.

Police are retracing his steps on the day he was poisoned. Traces of radioactive Polonium-210 have been detected in at least five locations across the city so far.

British Prime Minister Blair has vowed the investigation will be complete, but saying that he'll discuss the matter with the Russian president, Vladimir Putin, face to face if necessary. Litvinenko himself accused the Kremlin of poisoning him because of his outspoken criticism of the Russian government. The Kremlin denies any involvement in the killing.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

PAULA HANCOCKS, CNN CORRESPONDENT: I'm Paula Hancocks in Jerusalem.

U.S. Secretary of State Condoleezza Rice is heading back to the Middle East, and she'll meet with Palestinian president Mahmoud Abbas on Thursday. Rice is expected to urge Abbas not to miss an opportunity created by the current cease-fire by the Israelis and Palestinians in Gaza. Rice is also likely to tell Abbas that he has the full support of Washington, but the U.S. expects results from him in return.

No word yet as to whether Rice will also meet Israel's prime minister.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT: I'm Barbara Starr in Bilate, Ethiopia.

We are here with the U.S. military. They are training these very proud, young Ethiopian soldiers in anti-terrorism and commando tactics, but also basic battlefield skills, like looking after each other on the battlefield.

All of this is a part of the war on terror. The U.S. wants to help the Ethiopian army grow stronger so it can deal with extremism and other threats in this region of Africa, but this comes at a time when there is a lot of tension here. Troops are building up on both sides of the Ethiopian-Somalian border, and it's not clear how that threat will turn out.

(END VIDEOTAPE)

M. O'BRIEN: For more on these or any of our top stories, log on to our Web site, CNN.com.

S. O'BRIEN: Coming up on 45 minutes past the hour. Heading out the door? Chad's got a look at the travel forecast for you.

Good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Soledad.

Hi, Miles.

(WEATHER REPORT)

Talk about method acting. The star of "The Nativity Story" you're about to see has something in common with the woman she plays on screen.

We'll tell you about that.

And this is video games. And if you'd like to see your brain on video games, well, you'll see it soon. Do violent video games really provoke violent behavior in kids? Dr. Sanjay Gupta has a study which may provide a link on that.

Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: "The Nativity Story" is Hollywood's latest version of the greatest story ever told, and it's getting rave reviews from the Vatican. And now there's a real-life twist for the teenage star who plays the Virgin Mary.

Here's CNN's Sibila Vargas.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE, "THE NATIVITY STORY": Do not be afraid, Mary. You have found favor with God. You will give birth to a son.

SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT (voice over): When Hollywood decreed it would take on the nativity story, Catholics the world over heralded its 21st century arrival.

KIERA MCCAFFREY, THE CATHOLIC LEAGUE: This is a film explicitly about the birth of Christ, so we don't see very many of those these days.

VARGAS: A major studio backed the movie, New Line Cinema, a sister company to CNN, and enlisted director Catherine Hardwicke, and Oscar-nominated star Keisha Castle-Hughes as the virgin mother. Filmmakers even got approval from on high. The Vatican would host the movie's world premier, a first for the Holy See.

But then this fall, after filming wrapped, Keisha Castle-Hughes had some news. The 16-year-old actress announced she and her boyfriend were expecting a baby.

UNIDENTIFIED FEMALE, "THE NATIVITY STORY": Do you know how much disgrace you have brought upon yourself?

VARGAS: The parallels were striking: unwed teenage actress gets pregnant, deciding to keep the baby. That alone is unusual. The fact that she also happens to be the actress playing the most famous unwed teenage mother of all time, what are the odds?

CATHERINE HARDWICKE, DIRECTOR, "THE NATIVITY STORY": Life imitating art. That's kind of interesting, yes.

VARGAS (on camera): You must have at some point -- you know, it has to cross your mind. You know, it just crossed all of our minds. It's like, this is amazing.

HARDWICKE: I know. And her boyfriend is in construction, too. He's a carpenter, too. But he's not named Joseph.

VARGAS (voice over): Castle-Hughes was a no-show at the L.A. premier and has been absent from all of the film's publicity events, including the press junket. The filmmakers say that's only because she's busy shooting another movie in Australia and not because they feared religious fallout, as had been speculated.

(voice over): On Sunday, one important world premier put the religious fallout rumors to rest. Seven thousand gathered and cheerd at the Vatican screening, including a number of high-ranking cardinals.

MCCAFFREY: She isn't the blessed mother although she's portraying her. She did a job. She did a very good job in this film acting. Now she finds herself in this spot. It's something that people understand.

VARGAS: And it certainly adds an unusual twist to the story of the nativity.

Sibila Vargas, CNN, Hollywood.

(END VIDEOTAPE)

M. O'BRIEN: The boyfriend's a carpenter. That's the one that got me. That's the one that got me.

S. O'BRIEN: But he's not named Joseph.

M. O'BRIEN: Oh. Well, he can work on that. He can change his name.

Well, which would you rather have, a holiday party with your co- workers or the cash?

S. O'BRIEN: The money.

M. O'BRIEN: Go for the money.

Ali Velshi is "Minding Your Business" next on AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: All right. Let's get back to that question we asked you before the break. The party or the bonus?

S. O'BRIEN: The bonus.

M. O'BRIEN: The bonus, absolutely. There's not even any ambiguity on our point, our opinion on this.

Ali Velshi "Minding Your Business" with more on this.

Hello, Ali.

ALESSIO VINCI, CNN CORRESPONDENT: Do I look like I'm having fun? This may be the very reason CNN doesn't have...

M. O'BRIEN: I think you just lost your bonus.

VELSHI: Yes. Well, we did a little -- we did a little survey of small businesses, or someone else did and survey of small businesses and found out that in fact more parties -- there are going to be fewer parties for small businesses, and more companies are giving up on the party and choosing the bonus.

In 2006, 47 percent of small businesses are planning a holiday party, and that's up from -- I'm sorry, that's down from 55 percent, even though it says up on the screen. It's down from 55 percent last year. Thirty-nine percent will give out bonuses, and that is up from last year.

So more small businesses are choosing the bonus over the party.

Now, over at US Air, US Air this past weekend -- you know, this is the busiest travel weekend, week of the year. So from Wednesday to Sunday, they found that their staff did a really good job. Most of the flights were on time. In fact, 79 percent of flights from Wednesday to Sunday arrived within 14 minutes of their scheduled arrival time.

That's a bit of a baseball stat, if you ask me, within 14 minutes. I don't know why that's relevant -- 99.6 percent of scheduled flights actually happened, and there were only 6.02 mishandled backs per 1,000.

They're all getting 50 bucks for that at US Air. I don't know if they're getting a party, too.

M. O'BRIEN: It would be a big party. VELSHI: It would be a big party.

M. O'BRIEN: But you're looking good there.

VELSHI: You like the hat?

M. O'BRIEN: Yes. And excellent job of knowing your ups from your downs on the fly like that. That was good.

VELSHI: Yes, thanks.

M. O'BRIEN: That was good.

VELSHI: I've got a lot of strengths.

M. O'BRIEN: Obviously he's in the party mood, but he hasn't been drinking the adult beverages yet.

We appreciate that.

All right -- Soledad.

S. O'BRIEN: Yes, I don't love the outfit. It's all right.

The next hour of AMERICAN MORNING begins right now.

M. O'BRIEN: Crisis talks. President Bush meeting with Iraq's prime minister today while a new bombshell report shows the White House's doubts about the prime minister's ability to achieve peace.

S. O'BRIEN: Deadly discipline. Seven guards and a nurse now facing charges in the death of a teenager at a Florida boot camp.

M. O'BRIEN: And the wintry blast. Ice and snow turn deadly out West, with dramatically colder air moving into the Midwest today on this AMERICAN MORNING.

S. O'BRIEN: Welcome back, everybody, Wednesday, November 29th.

I'm Soledad O'Brien.

M. O'BRIEN: I'm Miles O'Brien.

We're glad you're with us.

S. O'BRIEN: Let's begin with the latest developments in Iraq this morning. Here's what's new.

President Bush is meeting with Iraq's prime minister today about his plan for getting Iraq under control. The president leaves the NATO summit in Latvia this hour for that meeting in Jordan.

And a newly-revealed memo shows that the White House has some big doubts about Nouri al-Maliki and his ability to truly lead a unified government.

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