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Iraq: The Way Forward?; Explosion In Milwaukee; Poisoned Spy

Aired December 06, 2006 - 10:00   ET

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


HEIDI COLLINS, CNN ANCHOR: Good morning, everybody. I'm Heidi Collins.
TONY HARRIS, CNN ANCHOR: And I'm Tony Harris. Spend a second hour in the NEWSROOM this morning and stay informed. Here's what's on the rundown.

A must-read for Washington today. President Bush gets recommendations from the Iraq Study Group.

COLLINS: A murdered spy's friend. He talks about the poisoning of Alexander Litvinenko. CNN's hospital exclusive from our Matthew Chance.

HARRIS: Icy weather keeping thousands in the cold. A new arctic blast about to blow in. Feeling powerless in the Midwest on Wednesday, December 6th. You are in the NEWSROOM.

COLLINS: Long-awaited, highly anticipated. Will the recommendations provide a road map out of Iraq? The report from the Iraq Study Group will be released next hour. It was presented to the president a little bit earlier this morning. We want to go straight to the White House now live with our Ed Henry.

Ed, tell us what you know at this point.

ED HENRY, CNN CORRESPONDENT: Well, good morning, Heidi.

A rather blunt assessment from the Iraq Study Group, saying they believe in their report, "the situation is grave and deteriorating." And so what they call for is a rather dramatic shift in policy. Urging the White House to set the goal of getting most U.S. troops out of a combat role, putting them into more of a background role by early 2008.

But again, they set it as a goal. The key is, there's no specific timetable for withdrawing U.S. troops. But the report does say that the primary mission of U.S. troops should now be as a supporting role of the Iraqi army and that the U.S. cannot have an open-ended commitment to Iraq.

Secondly, it also urges the Bush administration to come up with a broader Mideast peace plan to deal with the Israeli/Arab conflict and that without a solution there, basically, they are not going to succeed in Iraq. Part of that, as well, this group urging that the White House now open direct talks with both Iran and Syria. That again is something the White House has repeatedly rejected. This report now in the hands of the president. Some 79 recommendations. He received it this morning from all 10 members of the study group and then had this to say.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I've told the members that this report, called "The Way Forward," will be taken very seriously by this administration. It's a -- this report gives a very tough assessment of the situation in Iraq. It is a report that brings some really very interesting proposals. And we will take every proposal seriously. And we will act in a timely fashion.

(END VIDEO CLIP)

HENRY: But the key is the president clearly was being noncommittal there. He does not want to get locked in any cement. That, in part, is because of the fact that his own administration has several other separate reviews, almost rival reviews to this report that they're undergoing right now. And it's unclear how much of this report will actually be adopted.

But the Baker/Hamilton commission basically warns that time is of the essence. Saying, "foreign policy is doomed to failure, as is any action in Iraq if not supported by broad, sustained consensus." They're putting it right at the doorstep of the president. But also at the new doorstep of the new Democratic Congress that will take power in January. Basically saying that it's time for both sides to put down their political arms and find some cooperation. That's, obviously, going to be very difficult in Washington.

Heidi.

COLLINS: I want to talk quickly, and if we could, about this diplomatic offensive and this need for an international consensus in order for Iraq to become more stable. Something coming directly out of the Iraq Study Group report. I had a chance to talk with former Defense Secretary William Cohen just a little while ago and he says, you know, nobody in this region, none of the neighboring countries want to see Iraq slide into chaos. He talks about how important it will be to get everyone to be working together. Who will do that? Is that going to be Condoleezza Rice? I mean, how do you get these people on board?

HENRY: That's the key question. Obviously, if we had an answer, it may have already been done. Democrats on Capitol Hill, again, they're taking power in January. They've urge the president to appoint some sort of a special envoy to the region, to take it out of Condoleezza Rice's hands, saying that the secretary of state already has her hands full, as does the president. There have been some calls for maybe James Baker, after being finished with this report, as a former secretary of state, maybe he should take on the mission. Maybe do it with Lee Hamilton, the lead Democrat on this panel.

There are a lot of potential options out there. But I think another person to look to, while diplomacy is not his game, Robert Gates, the potential incoming defense secretary. At those hearings yesterday, he got praise not just from Republicans, but Democrats for what they believe to be refreshing candor. By acknowledging that he does not believe the U.S. is winning the war in Iraq. That instantly gave him some potential. Independence, credibility, if you will, that Donald Rumsfeld, frankly, no longer had, which is why he doesn't have the job anymore.

And so I think he potentially, Robert Gates, is somebody to watch. He could be, obviously, the chief salesman of whatever new policy emerges. We expect the president to come up with that new policy by the end of December.

Heidi.

COLLINS: And the vote for him was unanimous. So we shall see.

All right, Ed Henry, great reporting. Thank you.

HENRY: Thank you.

HARRIS: And, Heidi, we're starting to get some congressional reaction to the Iraq Study Report. That report due to be made public at 11:00 a.m. Eastern Time this morning. You are about to hear from Majority Leader Bill Frist and Minority Leader Harry Reid reacting to the release, the pending release of the report, and to their meet with members of the study group this morning. Let's listen.

(BEGIN VIDEO CLIP)

SEN. BILL FRIST, (R) MAJORITY LEADER: Good morning.

I'd like to welcome members of the bipartisan Iraq Study Group to the Capitol today to present their findings to the United States Senate. I also want to thank members of the Iraq Study Group for their diligence in working on a comprehensive, consensus report on the future of Iraq. The Iraq Study Group will be making significant contributions to the discussion to this very important issue and debate and I look forward to hearing their recommendations.

SEN. HARRY REID, (D) MINORITY LEADER: To each of the 10 members of the Iraq Study Group, I extend each of you the appreciation of the American people. What you have done, the time you've spent, the discussions that have been held, we or the public will never know what went on right at this point. But you're all American patriots. I think the way you've handled this in the press has been exemplary. And I personally appreciate, and I think I speak for all Americans, the work that you've done.

FRIST: Secretary Baker.

JAMES BAKER, CO-CHAIR, IRAQ STUDY GROUP: Thank you, Senator Frist, Senator Reid.

We have a unanimous report here, a consensus report, that contains 79 specific recommendations. We think it offers the basis for a common ground forward on a bipartisan basis with respect to a problem that's a significant problem for the country. And thank you for having us up here this morning.

FRIST: Senator Hamilton.

LEE HAMILTON, CO-CHAIR, IRAQ STUDY GROUP: Thanks, Senator Frist and Senator Reid for having all 10 members of the Iraq Study Group here this morning. We made our presentment to the president earlier today. We've met with the leaders of the House and we're delighted to have the opportunity now to meet with these distinguished senators to give them some idea of what we recommend. We thank you for that reception.

(END VIDEO CLIP)

HARRIS: And, once again, starting to get some reaction from Capitol Hill. You saw there Majority Leader Bill Frist and Minority Leader Harry Reid welcoming members of the Iraq Study Group to Capitol Hill just inside an hour of the release -- public release of the Iraq Study Group report. Let's get the view on all of this from the Pentagon. The U.S. military's top brass certain to have a keen interest in the recommended Iraq policy changes. We check in now with CNN Pentagon correspondent Barbara Starr.

Barbara, good morning to you.

I'm curious, is there likely to be anything in these recommendations, the nine recommendations from the Iraq Study Group, particularly when it comes to the military moving forward that hasn't already been discussed by military commanders?

BARBARA STARR, CNN CORRESPONDENT: Well, Tony, I don't think so.

You know, this report will be taken very seriously. But within the central core of senior U.S. military commanders dealing with the war in Iraq, there are no ideas out there that really people haven't already discussed, haven't already thought of. There's been quite a longstanding view that there's no magic, silver bullet solution to Iraq.

Of course, the military also working on its own review. General Pace, the chairman of the Joint Chiefs, General Abizaid, the top U.S. commander for the region, all looking at this, all working on their ideas about what they think needs to be done.

But what should probably be made clear is there is an awful lot of work already underway by the military. There are a number of initiatives that are well underway in Iraq, including, they are accelerating, or trying to at least, accelerating the turnover of security to Iraqi forces. There is an initiative to already increase the size of U.S. military training teams in Iraq to help the Iraqis and an effort to try and reposition U.S. troops in Iraq into some of those more rear positions behind the front lines so they can push the Iraqis out there and get them to take more of that front line combat role that this report is talking about.

Whether all of that can be accomplished by 2008, as this report suggests, 2008 is a time frame to get U.S. forces out of the lead combat role, that's the question. It remains very difficult, very problematic. The general consensus is, unless something can be done about security in Baghdad and Anbar province in the west, how you accomplish that remains the central question.

Tony.

HARRIS: Barbara, one more quick one. The Iraq Study Group is going to call for U.S. troops to be taken out of combat roles. Is there any suggestion that some of those combat troops will be brought home or will they be rolled into some other role?

STARR: Well, that's a good question that we don't know the answer to yet. Because what we have heard is that the extent to which trainers, advisers, those teams of U.S. troops that will do that function will increase. That may simply be a number of combat troops that sort of will be relabelled, if you will. They will move from combat positions to becoming trainers and advisers. So the extent to which that leads to an actual, significant reduction in U.S. combat troop levels in Iraq remains something that nobody knows the answers to at this point because either you have to keep a security presence for Baghdad and Anbar province, or you basically give it up.

HARRIS: CNN Pentagon correspondent Barbara Starr for us.

Barbara, thank you.

COLLINS: We want to get straight now to Dana Bash. She has obtained a copy of the Iraq Study Group report called "The Way Forward." Dana, live now to Capitol Hill. Your thoughts. We're not quite sure how much you've been able to see, but I know you have it in your hand.

DANA BASH, CNN CORRESPONDENT: That's right. And this is it. This is it, Heidi. This is the report that is now in the hands of many senior members of Congress because, as we have been talking about all morning, the Iraq Study Group is here on Capitol Hill. We expect a briefing shortly.

We've been talking about many of the recommendations. There are 79 recommendations in this 100-plus-page report. Many of them are talking specifically about the military role and, of course, of the diplomatic solution, from their point of view, going forward. Let me just go through the three basic points that Jim Baker, the Republican head of this group, is telling members of Congress.

First of all, that the transition of U.S. combat forces out of Iraq should happen and should be tied to -- should happen, I should say, rather quickly. But, there is, as we've been talking about, no specific deadline and no specific timetable on that.

Also, the second is that they do tie the future of U.S. support in Iraq to the training. Specifically to the training of Iraqi forces. And also, on the diplomatic front, what they say is that there should be a very robust, diplomatic offensive. Not specifically a diplomatic commission, if you will, or conference, but a robust, multinational diplomatic offensive. And this does say that that should be started by the end of this year, by December 21, 2006.

Let me just, Heidi, read you a couple of the quotes that I quickly pulled out. We just got this.

COLLINS: Sure.

BASH: First of all, on the issue of withdrawal. It says that, "we believe it would be wrong for the United States to abandon the country through a precipitated withdrawal of troops and support. A premature American departure from Iraq would almost certainly produce greater sectarian violence and further deterioration of conditions leading to a number of adverse consequences outlined above." But they also, later in this report, make it clear that they do not believe staying the course is the right way to go either.

On the issue of troops, which you were just talking about with Barbara Starr, it does talk about the need, again, to train Iraqi troops and to really put the focus there. It says, "U.S. combat brigades could begin to move out of Iraq by the first quarter of 2008, subject to unexpected developments in the security situation on the ground. All combat brigades not necessary for force protection could be out of Iraq." So that is what it says on that issue.

And again, as I mentioned, actually, the very first recommendation of the 79 does deal with this new diplomatic offensive. It says that "the United States, working with the Iraqi government, should launch the comprehensive, new diplomatic offensive to deal with the problems of Iraq and of the region. The new diplomatic offensive," it says, "should be launched by December 31, 2006." And then it goes on to explain how they think that the United States should go forward with partners around the world in dealing with that is really one of the only solutions, the only way to really have a long and lasting situation of stability in Iraq.

Heidi.

COLLINS: Yes, no question about it, the diplomatic offensive, I think, is going to be the key to at least this report.

BASH: Absolutely.

COLLINS: We will continue to follow it. Great job.

Dana Bash, thanks. We'll check back a little bit later on.

HARRIS: We are going to get you an update on that explosion in Milwaukee shortly. An explosion at a building in an industrial park there in Milwaukee. Look at these pictures. Twenty to thirty minor injuries. Obviously that's the good news here. We will let you know if any evacuations have been ordered in this immediate area.

COLLINS: Well, he says he's a friend, not a killer.

(BEGIN VIDEO CLIP)

MATTHEW CHASE, CNN CORRESPONDENT: Did you poison Alexander Litvinenko?

MARIO SCARAMELLA, ITALIAN SECURITY CONSULTANT: No. Not me, of course.

(END VIDEO CLIP)

COLLINS: One of the last people to see a poisoned Russian spy speaks about that meeting. An exclusive CNN interview coming up in the NEWSROOM.

HARRIS: Opening the door on a way out of Iraq. The Iraq Study Group suggests an exit strategy. The president reviews it. Our experts analyze it throughout the day in the NEWSROOM.

And charting a new course in Iraq. What does the recommended road map mean for the military? We put that question to CNN military analyst, retired Brigadier General Spider Marks. He is coming up in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: So let's get you back to the NEWSROOM now and Fredricka Whitfield for an update on this explosion in Milwaukee.

Fred, what's the latest?

FREDRICKA WHITFIELD, CNN CORRESPONDENT: Right. Near downtown Milwaukee an explosion that results in fire and many injuries. And it shocked a whole lot of people. Just listen to this interview conducted by our affiliate reporter Gus Gnorski of WITI.

(BEGIN VIDEO CLIP)

GUS GNORSKI, WITI REPORTER: The degree of the fire, though, seems to be spreading. I know it was only three alarms to begin with. But we have some people here that felt this explosion from many other parts of town. Carrie Doctor (ph) felt it from quite a bit away. We've got one gentlemen here. Step in here for just a second. What's your name?

SCOTT: Scott.

GNORSKI: Scott, where do you live?

SCOTT: Thirteenth and Grange.

GNORSKI: Thirteenth and Grange.

SCOTT: By the airport.

GNORSKI: Now that's by the airport. And you felt this?

SCOTT: Yes.

GNORSKI: And what brought you down here now?

SCOTT: Well, I'm on my way to work but everything's blocked off right now, so I can't get through anywhere.

GNORSKI: Where do you work?

SCOTT: I work at Meticulous Auto Body on the northwest side.

GNORSKI: You're not able to get down there at all.

SCOTT: No, I wasn't. Well all the bridges are closed down for all the emergency vehicles.

GNORSKI: Well, good luck and hopefully nothing else happens to you, at least today, and you can get to work.

SCOTT: It was pretty loud.

GNORSKI: It was loud. To feel it all the way near the airport from here, this was really a phenomenal blast.

(END VIDEO CLIP)

WHITFIELD: It was loud and it was frightening and that's why they did evacuate the area. This is an industrial park. And this building is where the Falk Corporation (ph) carries out its business. It produces steel products and there's a lot of welding that takes place. We don't know exactly the cause of the explosion, which resulted in fire. And you're seeing the smoke there, too, as firefighters continue to try to put it all out there in these live pictures.

WITI is reporting that at least 40 people were injured. We talked to a fire department official just about 30 minutes ago who told us that at least 30 people are being treated for injuries. Most of them being treated right there on the scene.

So certainly a frightening situation. It certainly sounds like it could have been worse dealing with so many other businesses in this industrial park area. But still the investigation is in its early stages, Tony, and that's what we know right now.

HARRIS: OK. Appreciate it, Fred. Thank you.

COLLINS: He has a role in a spy saga. Italian security expert Mario Scaramella was one of the last to see an ex-KGB agent before he was poisoned. Our Matthew Chance had an exclusive bedside interview with him. Matthew joins us now from London.

Matthew, what did he have to say to you?

MATTHEW CHANCE, CNN CORRESPONDENT: Well, a number of things, Heidi.

First of all, he denied that, first of all, he was the poisoner of Alexander Litvinenko. He says that he was his friend. He also spoke a lot about his health condition. Said that there had been small traces of the radioactive isotope polonium 210 found in his system but that, quite frankly, he didn't believe it because he felt so well compared to the devastating effect that substance had on Mr. Litvinenko, the former KGB spy. So in this exclusive interview at his hospital bed, I asked him who he thought was behind the poisoning.

(BEGIN VIDEO CLIP)

CHANCE: And what kind of hostile forces do you believe were placing -- were targeting you and your colleagues?

MARIO SCARAMELLA, ITALIAN SECURITY CONSULTANT: People linked with (INAUDIBLE) organizations. Not directly under control of Russian establishment, but from Russia.

CHANCE: That's rogue security agents in Russia?

SCARAMELLA: Well, you know, generally retired people from security services, these kinds of people. Yes.

(END VIDEO CLIP)

CHANCE: Well, it's now believed that Mr. Scaramella has been discharged from the hospital. There hasn't been an update from doctors, though, about his medical condition or his whereabouts at this stage. What we do know, though, Heidi, is that British police are still continuing their investigation, both here in London and in the Russian capital, Moscow, where they're expected to interview some witnesses there soon as well.

COLLINS: All right. As we wait for those interviews to go on, hopefully they will reveal some information as to how this may have happened.

Matthew Chance, appreciate that, live from London today.

A highly anticipated report presented to the president. Members of the Iraq Study Group release their report to the public later this morning. President Bush received his copy earlier today. Sources say it stopped short of a timetable for withdrawing U.S. troops, but it sets a target of moving most forces out of combat roles by 2008. It also calls for a new diplomatic initiative. The president promised to consider the recommendations in a timely fashion.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I've told the members that this report called "The Way Forward" will be taken very seriously by this administration. This report gives a very tough assessment of the situation in Iraq. It is a report that brings some really very interesting proposals. And we will take every proposal seriously and we will act in a timely fashion.

The commission is headed up to Congress. And I urge the members of Congress to take this report seriously. While they won't agree with every proposal, we probably won't agree with every proposal. It, nevertheless, is an opportunity to come together and to work together on this important issue.

(END VIDEO CLIP)

COLLINS: The president says the report is a chance to end the political bickering about Iraq.

HARRIS: Proposed changes in Iraq strategy. What do they mean for the military on the ground right now. With us now from Washington, CNN military analyst retired Brigadier General James Spider Marks.

Spider, good to see you.

Oh, great, we've got show and tell today.

All right, Spider, look . . .

BRIG. GEN. JAMES MARKS (RET.), CNN MILITARY ANALYST: Show and tell. Is that what I've been entered into?

HARRIS: No, no, no, no, no show and tell and great insight. That's what you've been relegated to, all right, my friend. Here's the thing. Moving forward on the ground in Iraq. We want to make the best use of our military in Iraq right now. And I know we're going to talk a little bit about forward operating bases and maybe a redeployment of troops inside of Iraq to the areas where they are most need. Help us understand this.

MARKS: I can do that for you, Tony.

First of all, as a point of reference, let me go to the map just very quickly and show you the primary cities in Iraq, certainly are Baghdad. The concentration around Fallujah and Ramadi, and also up north in Mosul. If we can bring the cities up as well right now -- there you go -- those in blue are the key cities. What's significant about Alqaim is that's certainly where the border is with Syria and it's important that that border area be locked down, as is the border to Iran.

But as you look at the primary cities that you have in Iraq, and then, Tony, the dots that were on there just a second, they'll come right back up. This is where the forward operating bases are located right now. Now what's significant is you've got over 50 forward operating bases, and this is where you have some small concentrations and, in some cases, some very large concentrations of U.S. and coalition forces.

Now what has been argued in many cases, and I would suggest will be posited in the study group, and we'll see that revealed here shortly, is that you don't necessarily have to increase the number of forces in country, but to probably move and adjust, not only locations, but missions of some of the forces that are already there and concentrate where you have to fight.

For example, you've got to fight in Baghdad. You've got to control Baghdad if you want to control the rest of Iraq. So maybe there's a good, strong argument to draw down some of those other forward operating bases and concentrate in some of those areas that are highlighted here.

Tony.

HARRIS: So what are the numbers that you think might be appropriate here? You mentioned that the number now is about 50, 55, maybe forward operating bases. I've heard some suggestion that you could draw that number down to maybe five operating bases or at least a number less than 10. Does that make sense to you?

MARKS: Well, what you end up with, Tony, is concentrations. You probably will have forward operating bases in about five, maybe six key areas and you'll have multiple FOBs within that. But I think that's a reasonable estimate to make.

And then you have to have those forces routinely available. Now, bear in mind, this is not just U.S. forces that we're talking about. The associated mission set, which might be modified a little bit, is to train and grow to accelerate the training and growth of Iraqi forces, get more U.S. advisers into those units, down to lower levels so that you can increase the numbers more effectively.

HARRIS: Let's concentrate for a moment on the training aspect. The recommendation is going to be that we move more of U.S. forces out of combat roles by early 2008 and more into a mission of training and supporting of Iraqi forces. So explain to me and to everyone at home, I'm slower than the audience, they probably get this by now, what we mean from logistics to even forming an air force. What is the job that needs to be done when we're talking about training up Iraqi forces because, ultimately, this cuts to how long it might take.

MARKS: Tony, cut yourself a break. That's a great question.

Let's hold off on the air force discussion just for a second. Let me put that to the side because I don't think the Iraqi air force is going to be built up in any numbers in the near term that we need to discuss. So let's talk about the ground forces and security forces that are on the ground.

The U.S. has been routinely, for about the last two and a half years, aggressively training and trying to train Iraqi forces. They have done that through mobile training teams. The U.S. military identifies great officers and leaders. They go to Fort Riley, Kansas. They train for two months and then they deploy to Iraq and they embed themselves with Iraqi brigades. So those are full colonels with formations of about 1,000 folks. These are Iraqi soldiers.

What could be suggested in this study group is bring the MTTs, leave them at the brigade level but bring them down and enhance at the battalion level. Now you have a mission critical enhancement and maybe even bring them down to the company level. So you increase the number of advisers. So that's taking place right now.

But additionally, the combat role that we had that's in country is not going to go away anytime soon. What is going to happen will be the identification of certain leaders and soldiers and marines away from those units and into those enhanced and increased advisory roles. HARRIS: All right. Another quick question before I have to let you go. What is the standard that we're trying to reach with these Iraqi forces. Are we trying to train them up to American military standards?

MARKS: Tony, we're never going to really, in our lifetime, reach that level. But there will be a very objective evaluation of what these forces look like. See, bear in mind. We have had generations and generations of a professional military with a professional ethos. Emphasis on generations. Plural. This takes time. So in order to have a foundation, that noncommissioned officer core, that backbone of the military, it takes time to achieve that. So what the United States is trying to do is give the Iraqis a jump-start. Now, also bear in mind, this is not a cold start. The Iraqis have a very long, storied history of being a marshal state. They know how to fight, they know how to form armies. What we're trying to do is bring that back to the surface and let them run with this.

HARRIS: Spider, can you stick around a bit? I mean, I know you've got a full schedule, but I'm asking you on television which means you can't say no to me. Can you stick around a little bit? OK. Our CNN military analyst Brigadier General James Spider Marks. Spider thanks.

MARKS; Thanks Tony.

COLLINS: We want to go straight to Andrea Koppel, she's on Capitol Hill for us. Get a little bit more information about the Iraq Study Group report. It's called "The Way Forward."

ANDREA KOPPEL, CNN CONGRESSIONAL CORRESPONDENT: That's right.

COLLINS: Andrea, it's interesting there are 79 recommendations we're talking about.

KOPPEL: That's exactly right, Heidi. And in fact, here is the cover of the report that CNN has obtained just a short time ago. For our viewers, I think that there are really two key elements to this report.

One has to do with the recommendation for the U.S. to immediately start moving off on the diplomatic track and engage with Iran and Syria. They are also talking about engaging with other Iraqi neighbors, but in point of fact, Heidi, the U.S. is already engaged with them. Those are the two countries that President Bush has been reluctant to engage with.

The other aspect to this report has to do with the military, what Spider Marks was just going through there. And here's the highlight. It says that the Iraqi government should accelerate assuming responsibility for Iraqi security. And at the same time, that the U.S. should significantly increase the number of U.S. military personnel, including combat troops, embedded in and supporting Iraqi army units.

In other words, begin to adjust its role in Iraq. At this same time, it says that the U.S. should begin to evolve and by the beginning of the first quarter of 2008, in other words, just a little over a year from now, subject to unexpected developments in the country, the U.S. should move all combat brigades not necessary for force protection out of Iraq.

It doesn't talk numbers, and it doesn't talk about a timeline for when this should end. But by the first quarter, they should begin to move these combat forces out of Iraq and it says at that time U.S. combat forces in Iraq could be deployed only in units embedded with Iraqi forces. So the entire structure, and the entire mission of U.S. forces in Iraq would change.

It goes on to say that the U.S. must not make, must not make open-ended commitments to keep large numbers of troops, of U.S. troops, in Iraq. And really, Heidi, this is the clincher. It says that these recommendations should not be separated or carried out in isolation.

The dynamics of the region are as important to Iraq as events within Iraq and as you well know, anybody you talk to, and when you hear President Bush talking about this report before he even knew it was coming out, we are -- President Bush was already signaling that he was probably going to be picking and choosing what he thought was most important, not only in this report, but in the reports that we're expected to see out of the Pentagon and the National Security Council -- Heidi.

COLLINS: It will be very interesting to see these troops and the diplomacy working hand in hand and yet so separately at the same time. We will be looking at all of it throughout the day of course. Andrea Koppel, live from Capitol Hill, thanks.

HARRIS; Well, the report from the Iraq Study Group. It was presented to the president earlier this morning. Live now to the White House and our Suzanne Malveaux. Suzanne, give us the view on this very busy morning from the White House.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Tony, it's not surprising that White House officials are really downplaying the criticism from the report and really trying to play up this motion, this idea that the Bush administration is on the same page as this bipartisan Iraq Study Group.

Just moments ago we wrapped up with the off-camera briefing with press secretary Tony Snow and he was asked point blank whether or not the president, the Bush Administration, believed as the Iraq Study Group report says that Iraq is in grave and deteriorating condition. He said, well, he wouldn't put it that way, but that certainly the president found the situation unacceptable.

There are a couple of passages that they point to in this report that show that they are on the same page with the study group. The very first line of the report, Tony, says, and I'm quoting here. "There's no magic formula to solve the problems of Iraq. However, there are actions that can be taken to improve the situation and protect American interests. Many Americans are dissatisfied. Not only with the situation in Iraq, but with the state of our political debate regarding Iraq."

There is another passage as well, page 40, in this report. It goes on to say from the group, "we agree with the goal of U.S. policy in Iraq as stated by the president. An Iraq that can govern itself, sustain itself and defend itself."

So, clearly the Bush Administration putting out those lines, lines that we have actually heard from the president and top level officials leading up to the release of this report. But it -- as Andrea had mentioned, there are a lot of recommendations and suggestions that will be very difficult for this administration to accept.

Namely, talking to Iran and Syria without preconditions. That is something the president has rejected. This whole idea of the role of the military, whether or not they would actually withdraw. We are told that in this report they don't call for immediate withdrawal. They do not call for a timetable. Those are things that the Bush Administration is focusing on. But clearly, this is going to be a difficult report in some ways for the president to follow.

HARRIS: White House correspondent Suzanne Malveaux for us. Suzanne, thank you.

COLLINS: Want to talk about the holidays a little bit. But unfortunately, when we're talking about different things that we do with our money during the holidays, it's not all fa-la-la..

GERRI WILLIS, CNN CORRESPONDENT: No, not by a long-shot. Now, you're shopping for the holidays, right?

COLLINS: Thinking about it.

WILLIS: Thinking about it. Look, whether you are shopping online or you are shopping in the real world, you have to be careful about scam artists. They are trying to steal your money. We'll give you tips in the NEWSROOM next on avoiding them.

ROB MARCIANO, CNN METEOROLOGIST: And I'm Rob Marciano in central Illinois, where they are still reeling from an ice and snow storm almost a week ago. Still some people without power and there's more cold air coming in tonight. A live report is coming up on the CNN NEWSROOM.

(COMMERCIAL BREAK)

(MARKET REPORT)

HARRIS: We'll check in with Susan Lisovicz and Gerri Willis right now.

COLLINS: And she has a shopper alert for us, which is a good thing because when the holidays come, unfortunately, scammers are out in force. They want to take your money during this season of giving.

(CROSSTALK) WILLIS: They have no standards. They are just out there to get the cash. That's what they care about. And their big thing this year that you may not know about are gift cards.

HARRIS: Yes.

WILLIS: You know, we're spending $25 billion every year on gift cards and they have found a way to steal your money. Heidi, listen to this. On the back of your gift card there is an activation number. And if you buy that gift card right in the middle of a store, thieves can come along and steal the activation number and then days later after you are spending money they activate that thing, they spend all your money online. You never know what happened.

COLLINS: You mean, they just look over your shoulder and --

WILLIS: No, it's not shoulder surfing. Actually, what it is, is they come in, in the store, steal the activation number off the back of the card before you even buy it.

COLLINS: Oh, I see.

WILLIS: So the solution to this is to make sure you don't buy those gift cards in the middle of the store. Buy them from behind the counter. Make sure if it has an activation card that there's a sticker on the front of that or at least you have to scratch it off.

COLLINS: So, you mean, the video that we're just showing, the ones that are sitting out in the store in the little slots they all have the numbers on them and you can walk up, grab one and then later --

WILLIS: Unless there's a sticker over the top of it or it's one of those that you have to scratch it off.

COLLINS: Gosh.

WILLIS: You have to be careful. I'm telling you, Heidi.

COLLINS: No kidding, and you are also talking about holiday greetings that come to you in your e-mail.

WILLIS: Listen to this.

COLLINS: I thought it was nice.

WILLIS: Exactly. You would think so. But there are social networking sites out there like facebook.com, myspace.com, particularly if your kids are using these. They may find that they get an e-mail from somebody in their social network and it's not really from somebody in their social network. Somebody has just gone on those websites, stolen the information, and they ask them for things like money for a credit card number.

COLLINS: I've been getting a ton of these lately from pharmaceutical companies. WILLIS: Really.

COLLINS: Driving me ballistic.

WILLIS: Yes, no fun. Don't even open these e-mails. You don't want to get close to it.

COLLINS: Yes, and then you say don't re-enter.

WILLIS: And don't re-enter the information. You may get e-mails from people. You actually think it's from amazon.com or you think it's from wal-mart.com -- some place you might have spent money saying, we really need you to re-enter that credit card number please. Heidi, do that and they will link you to a website. Guess what, you don't want to go there. It's the new phishing. You want to stay away.

COLLINS: And then the charity scams, which is the worst part of all.

WILLIS: It's the time of year you want to give to the local firefighters, the local police, military personnel. You want to give money this time of year. You are feeling generous. Be careful, though. This is where the scam artists are really out and may want to steal your money either by telephone or online.

I just want to give a couple of websites here that you can really check out these charitable organizations. Give.org, charitynavigator.org. These are great places to go to find out the best charitable organizations to give to.

COLLINS: They've done like a background check, sort of.

WILLIS: Look, you know, even legitimate charities, some spend their money better than others. So, you want to get as much of your money working as possible at this time of the year. because, look, you know, you want to make a difference.

COLLINS: No question about it. I think you are right on that. All right. Gerri Willis, thank you for all those important reminders this holiday season.

WILLIS: Thank you.

HARRIS: They are cold, miserable, and unplugged nearly a week after a wintry storm blew through. Tens of thousands in Illinois and Missouri still don't have power. And another cold front is about to invade. Our Rob Marciano is in Oreana, Illinois. And, Rob, I think we're talking about a cold snap here of historic proportions, aren't we?

ROB MARCIANO, CNN METEOROLOGIST: Yes, this one is going to be as bad, if not worse than what we saw just a few days ago in this past snow and ice storm was as bad as it was back in 1978.

Today is turning out to be the warmest day they've seen in quite some time and probably will. Because tomorrow, colder air is coming in and people are still without power. Joining me now is Steve Lashmett from Ameren Illinois with the power company here. What's been the biggest challenge this week?

STEVE LASHMETT, AMEREN SUPERVISOR: Just the overall magnitude of the outages. We've had many wires down, and as you can tell, the tree problems that we've encompassed. But we're starting to get our hands around it right now.

MARCIANO: Well, today would be a good day to do that. It's going to be above freezing at least for a few hours. Where do you stand now and where do you hope to be before this next cold snap comes in.

LASHMETT: Well on the circuits I've been responsible for we have all the wires back up. We've taken care of all the feeder outages and the device outages. And right now we're working on single outages, which are the services to the homes.

MARCIANO: Very good. Good luck and be safe out there. A lot of people counting on you. Steve and his crews have been working hard throughout the week for sure. It's something we take for granted and certainly in the wintertime when you are without power this long and you have sub freezing temperatures, it can be a dangerous situation. This morning temperatures were right around freezing. Tomorrow likely to be in the teens. They may not get above 20 degrees tomorrow afternoon -- Tony.

HARRIS: OK, Rob, appreciate it. Rob Marciano for us in Oreana, Illinois. People still struggling there.

Still to come, U.S. policy changes in Irag. A proposal now on the president's desk. What will he do with it? Insight from a man who has advised four U.S. presidents, David Gergen. And CNN's 'A' team as our special coverage continues right here in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Let's get you back to the NEWSROOM. Very busy there for Fredricka Whitfield this morning. And Fred, you've got news of -- what are we calling this -- a suspicious package, a suspicious --

FREDRICKA WHITFIELD, CNN ANCHOR: We are calling it a suspicious PVC pipe. A 12-inch pipe that has now been located en Route 123 just outside the 495, the Beltway in the Washington, D.C. area. The Beltway meaning the interstate, which connects Maryland, D.C., and Virginia.

You are looking at a robotic arm right now looking into this suspicious pipe. And Route 123 is real significant because it's a Virginia road which takes folks from the Beltway to the Tysons Corner area, which is this time of year a big shopping area. There are two very sizable malls, and this 123 is a very, very busy road on any day anyway because of the many businesses and residences in that area.

And so now apparently, they have closed off 123, at least parts of it and certainly closed off the ramp of 123 onto 495. So the traffic is a real nightmare. It's really congested. You are looking at just this steady live picture because this robotic apparatus is investigating this 12-inch PVC pipe.

That's all we know about this suspicious item that is on the ground, and the camera is focused on this robotic apparatus to figure out just what it might discover or what it might be doing next. But the bottom line is it's a real mess in that area. A traffic nightmare. Folks are not going anywhere and you know that folks are losing a lot of patience. But this is why -- Tony.

HARRIS: Okay, Fred. Appreciate it. Man, I know you'll be following that for us. Thank you, Fred.

Grave and deteriorating. That assessment of the situation in Iraq, part of a much-anticipated report released this hour. In it, recommendations for stopping the slide toward chaos.

Our correspondents are covering the Iraq Study Group report from every angle with us. From Washington this hour, chief national correspondent John King, senior national correspondent John Roberts, senior political correspondent Candy Crowley, former presidential adviser David Gergen will join us as well.

But first, the White House and Congress, both branches of government focused on the Iraq Study Group Report. Will they find common ground or will politics get in the way?

Here's CNN's senior political correspondent Candy Crowley.

(BEGIN VIDEOTAPE)

REP. NANCY PELOSI, HOUSE SPEAKER-ELECT: The Iraq Study Group whose report is anxiously awaited.

CANDY CROWLEY, CNN CORRESPONDENT (voice over): Talk about your great expectations.

UNIDENTIFIED MALE: This report has the capacity to build a consensus which becomes critically important to persuade the members of Congress and, therefore, the American people that we have to come together for a period of time, limited though it might be, we have to get this one last chance to see if we want make this successful.

CROWLEY: Rarely do people in power look for answers from people out of power, but so it is with the Iraq Study Group.

WILLIAM BENNETT, HOST, "MORNING IN AMERICA": No one else has a real answer other than quit or win, so it has -- it's pregnant with the expectations because there's no other game in town.

CROWLEY: This was not the president's idea. It came from Capitol Hill, but he gave it creds.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: And the fact that you're willing to lend your expertise to help chart way forward means a lot.

CROWLEY: It could all come back to bite him, which may be why the president has been pretty definitive of late about what he will and won't do. Suppose, as expected, the group suggests talks with Iran. The president says not until they drop plans for a nuclear weapon.

BUSH: They know how to get us to the table. The choice is theirs to make.

CROWLEY: Suppose the group says there should be benchmarks set for the gradual withdrawal of U.S. troops.

BUSH: I'm not going to pull our troops off the battlefield before the mission is complete.

CROWLEY: Suppose the commander in chief says no?

UNIDENTIFIED MALE: I think if he were to just sort of give the back of the hand to that report, you would see the presidential campaigns, that are only in their incipient stages, accelerate a great degree. And you would see a battle that would take place over the next two years.

CROWLEY: Conservatives are fearful the Iraq Study Group is more concerned about a graceful exit than a way to win. They hope Bush is willing to pay the price of saying no.

BENNETT: What's the price? Approval ratings will go down, more bashing, more, "he's out of touch. He won't listen to anybody."

CROWLEY: On Capitol Hill hope springs eternal.

SEN. JOHN WARNER (R-VA): I feel confident that the president and his team will take into consideration that report.

(END VIDEOTAPE)

COLLINS: Seventy-nine recommendations in all, Candy Crowley, 100-plus pages in this long-anticipated report. The one that really does fascinate me is the diplomatic offensive, as it has been labelled, in particular, talking with Syria and Iran. President Bush has always said, not going to talk directly with Iran until they abandon their nuclear ambitions.

Spoke with William Cohen a little bit earlier today. He says, you know what? That's probably the case but you've got to get the U.N. Security Council to enforce some sort of ways that Iran will understand. That's right. You've got to abandon those the nuclear ambitions before anyone is going to really talk with you.

CROWLEY: Well, actually, the report does address that in some fashion and says, listen, the security council ought to take this nuclear issue, and they ought to deal with it. But they think, you know, in addition, the U.S. ought to be constructively engaged with both Iran and Syria. Now the president has said those are nonstarters, and they are until something changes. The other thing that the report says, which is interesting is, basically, you can't cherry pick these things. They all have to be done in concert, if there is to be a chance for some modicum success in Iraq.

COLLINS: What about the idea then of -- because that is such a big job. I mean, it's huge, about having a special envoy to the region to handle this particular diplomatic offensive or plan.

Exactly. I talked to someone that said, listen, when you look at this report, the first question comes up, who is going to do all of this? There are some concerns that the Secretary of State Condoleezza Rice is way too busy with other things to be able to do this. There are also some criticisms that this is not her deal, that she's a Soviet Union expert, that the Middle East is not her strength. We've heard the name James Baker come up in context with this. Should there be a special envoy. Some people on Capitol Hill have already called for that and people close to this commission who said they have to find a person to implement this.

COLLINS: Interesting. James Baker back in service even beyond the Iraq Study Group possibly. We'll have to see.

Senior political correspondent Candy Crowley, thank you.

HARRIS: And we are just minutes away, Heidi, from hearing from members of the Iraq Study Group, in their own words, describe the work they put into the report, and the recommendations for the United States government moving forward in Iraq. We're continuing to talk about U.S. policy in Iraq right now. It ultimately rests on President Bush's shoulders. So what's his likely reaction to the proposed changes from the Iraq Study Group?

To Boston now with David Gergen, he has been an adviser to four U.S. presidents.

David, great to talk to you.

DAVID GERGEN, FORMER PRESIDENTIAL ADVISER: Good to talk to you.

HARRIS: David, first of all, we've heard from former Defense Secretary William Cohen this morning already and his conversation with Heidi that there are no major breakthroughs in the report, that many of the options that have been talked about in the report that we're likely to hear, have been talked about already by the military.

So where is the new ground on this? In many respects, is the report dated before it even hits the ground?

GERGEN: Not at all. I think this report coming this week is extremely important.

First of all, this week has brought a cold bucket of water, a harsh dose of reality in Washington. When a report says the situation is grave and deteriorating, and implicitly says victory is not possible, that really puts enormous pressure on the administration, on the president in particular to engage in a radical course change, not just tinkering. And it will give a lot of leverage to people in Congress, Democrats as well as Republicans like John warner, the chance to say, we really have to change course.

Whatever the options you may eventually choose in the White House, this puts enormous pressure on the president to engage in radical course of change, something he has not wanted to do. He has basically in the last several days said not only no, but hell no, to many of the key proposals in this report. But I think now the pressure is going to be on him to take very seriously.

HARRIS: And, David, let me pick up on that. And in doing so, let me bring in our chief national correspondent John Roberts and John King. John King is with us right now.

John King is with us right now. John, great. Just getting that last word from our producers. John King is with us in Washington as well this morning.

John, let me ask you, hasn't the president, in effect, put down many of his markers, not only on this report, but in any future report to come, he is already embracing, for example, the idea of possibly moving more troops in temporarily to restore some order in Baghdad, and isn't he really embracing the idea already of training up more Iraqi security forces? So hasn't he put down his markers on what he will accept, and conversely, what are nonstarters?

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: He has up to this point, Tony. But as David noted, everybody in Washington was on pause, if you will, waiting for this report to be made public. Waiting to see how the political dynamic plays out.

And let's be frank, this is an administration that is not known for gracefully accepting criticism. This is a report that is incredibly critical. It doesn't say just that the president's policy in Iraq has gone south, it says that the president's policy in the whole Middle East has gone south, and that the region is slipping even more and more away from a stable secure setting, and it says the administration's foreign policy, because of all of this, is undermined. The United States standing around the world. So it is a slap at the president of the United States, who now has two more years left in office, has to decide whether he's going to accommodate his Democratic critics on Capitol Hill, accommodate the message of the American people in November's election, or to be stubborn and say, I am right and I think history will prove me right, 20, 30, 40 years down the road.

It is a big test for this president. And as David noted, can he cherry pick? You can do some of these things. And as you noted, yes, he says we're trying to train the Iraqis. They've said that from day one. The big question is, though, will you engage in a regional dialogue? Will you re-engage the Israeli/Palestinian issue? Will you push the Iraqi government to do more, even if the risk is the Iraqi government might collapse? Those are some of the questions facing the president today.

HARRIS: And, David, let's get back to that point that John just mentioned about cherry picking. This president, although the study group is saying we take these recommendations in full cloth, and not cherry-pick, the president has sort of set the stage to do exactly that. There are a number of reviews going on right now. The president is in a perfect position, if he chooses, to play it this way, to take something from this report, something from the next report, something from of the White House review as well.

GERGEN: I think he's in a -- he's trying to position himself that way, but I think John King was right about this, that he's going be under enormous pressure to consider the whole sweep of this report.

And particularly what John just said about it's an indictment, not just of Iraqi policy, but of where we're going in the Middle East, that means he's got a reconsider his whole Middle Eastern policy, and he's going to be under a lot of pressure to do that.

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