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Iraq Report Released; Three Killed in Deadly Explosion in Milwaukee; In the Deep Freeze

Aired December 06, 2006 - 14:00   ET

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

DON LEMON, CNN ANCHOR: Hello, everyone. I'm Don Lemon.
KYRA PHILLIPS, CNN ANCHOR: And I'm Kyra Phillips.

Reaction to the new plan on Iraq is fast and furious this afternoon. We're all over it.

Elaine Quijano covering it from the White House. John Roberts with analysis. Zain Verjee from the State Department, and plans to call for a more wide-reaching view of the Mideast.

LEMON: But first, here's what we know right now on that report.

It warns there's no magic formula for success, but it's offering some hopeful options. And here's what we know.

The group calls for moving most U.S. troops out of their combat roles by early 2008, but it does not set specific timetables. It also urges direct talks between the U.S., Iran and Syria, along with a new U.S. diplomatic effort across the Middle East. And it says the U.S. should reduce economic and military support if the Iraqi government fails to meet specific goals.

PHILLIPS: President Bush is promising to pay close attention to the Iraq Study Group's report, but he's not making promises that he will act on their recommendations.

Our White House correspondent, Elaine Quijano, standing by with more.

Hey, Elaine.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Hello to you, Kyra.

And the president's aides today are being very careful not to weigh in any specific fashion on any of the 79 recommendations put forth by the Iraq Study Group. Just a short time ago, in fact, Press Secretary Tony Snow repeatedly basically avoided expressing any opinion on those recommendations, saying that the White House only received the report at 7:00 a.m. this morning and was still studying it.

Now, the panel, as you know, delivered its report, its assessment in very sobering terms, describing the situation in Iraq as grave and deteriorating. It also said that the Bush administration's policy was not working. And the question, of course, remains now, what will President Bush do with those recommendations?

Here's President Bush from earlier this morning.

(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 -- 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 -- we will take every proposal seriously, and we will act in a timely fashion.

(END VIDEO CLIP)

QUIJANO: And so what does timely fashion mean? Well, the president's national security adviser recently said that would likely be weeks, not months, for the president to make some decisions on his Iraq policy. The White House, of course, conducting its own internal reviews of what's going on in Iraq.

And a couple of other points. Just now in the briefing Tony Snow was asked about the idea of getting into one-on-one discussions with Iran and Syria. Tony Snow basically reiterating what we've heard before from the administration, Kyra, and that is Iran and Syria know what they must do for the United States to get into that one-on-one kind of discussion, notably Iran, of course, coming to the table after having verifiably suspended any uranium enrichment programs -- Kyra.

PHILLIPS: Elaine Quijano, live from the White House.

Thanks, Elaine.

LEMON: The report is out. What now?

Let's get the big picture from our senior national correspondent, John Roberts. He's in Washington now, but he's certainly spent plenty of time in Baghdad -- John.

JOHN ROBERTS, CNN SR. NATIONAL CORRESPONDENT: That is the big question, Don, what happens now?

Certainly there are some aspects of the Iraq Study Group's report that would seem to be easy enough to implement, and that would be embedding more U.S. forces with the Iraqi army, with the national police, to try to train them up faster, to try to train them to be more efficient fighters. I noticed a lot of that while I was in Iraq, traveled with American troops who were not embedded with, but working together with the Iraqi army, and did visit some troops that were embedded with the Iraqi army. And so it doesn't seem to be a big deal to try to increase the number of forces to get them together with the Iraqi army.

It might be a little bit of an issue, though, if you're thinking of taking some of the combat troops off of the streets of Baghdad and other places right now to try to fill in that gap because certainly, from what I saw on the ground, there need to be as many U.S. combat troops on the ground as possible given the current violence.

The more difficult piece is the diplomatic piece. President Bush has resisted the idea of unconditional talks with Iran, doesn't see any purpose at present in dealing with Syria. Though listening to the White House briefing just a little while ago, Tony Snow did sort of seem to leave the door open a little bit that if they were to talk to Iran in the context of this broad regional group, well, perhaps that might be something worth looking at.

The other issue, too, is, who does the White House use to talk to these entities in the Middle East? Not a great track record as far as the U.S. goes in dealing with Middle Eastern countries. They haven't had much success with the Israeli-Palestinian issue, which this Iraq Study Group says has to be at the core of any solution. They certainly don't have a great record of talks with some of the more nefarious characters in the region either, although most White Houses haven't had that sort of relationship before either.

But they really need to have a strong presence there. Some people are saying, well, what about James Baker himself? Maybe he might be up for the job. But the study group did recommend, and it's right there in black and while in the report, that this has to be done at the highest levels, either Secretary of State Condoleezza Rice, or the president himself has to lead this effort -- Don.

LEMON: Hey, John, you know what? I'm going to talk about this report in a second, but since you've been there -- and we were talking to Ben Wedeman who's on the ground in Baghdad, and he said as they were talking about doing a press conference about this report, he said there were blasts and fighting going on very near where the reporters were. They could at least hear it in the background.

How much might the troops and the people there be listening for these recommendations and this report?

ROBERTS: Clearly, just among almost every soldier that I talked to -- and I didn't spend any time with the Marines. I did run into a couple of them during the time that I was there, but literally to a person, all of the U.S. Army personnel that I spoke with were looking for something to happen in terms of a modification of the way forward at the highest levels.

They believe that what they're doing on the individual level and the company level, even the battalion level, is worthwhile, and they believe they are making a difference. But when they step back and they look at the overall picture, they say there's a lot of room for change here.

It's obvious that the overall plan isn't working. And so something needs to be done.

And they're all looking at the idea of when they go back to the United States, those who are staying in the military, are someday going to have to come back to Iraq. So they would like to think that perhaps there was some sort of change that will happen on the ground there that may eliminate the possibility that they'll have to make another return engagement.

LEMON: John Roberts in Washington now. But as I said earlier, spent a lot of time in Baghdad.

Thank you so much for joining us today.

ROBERTS: You bet, Don.

PHILLIPS: Straight to the NEWSROOM. Fredricka Whitfield working details on that explosion out of Milwaukee.

What do we know, Fred?

FREDRICKA WHITFIELD, CNN ANCHOR: Well, we're finding out that it was quite the deadly explosion.

Now the medical examiner's office out of Milwaukee is confirming that three deaths are being connected to this explosion that took place at the Falk Corporation, which is a manufacturing business that makes things like gears, chains and bearings, mostly steel products.

This explosion taking place earlier this morning. And just prior to the explosion, there was some sort of propane tank gas leak, and it prompted an evacuation. So many of the people got out of the building, but the explosion took place, still resulting in what we're now hearing to be three deaths and at least 30 injuries from that explosion this morning in Milwaukee -- Kyra.

PHILLIPS: All right. We'll follow it. Thanks, Fred.

Well, back to the Iraq Study Group.

If the U.S. wants to help its friends, it must reach out to its enemies. That's one of the main points of Iraq -- the Iraq report, rather, which urges direct talks with Iran and Syria.

Let's get more reaction now from our State Department correspondent, Zain Verjee.

Do you think that will ever happen, Zain?

ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Well, it remains to be seen, Kyra. Really there are no easy answers, there are no easy solutions.

The idea essentially being proposed by the Iraq Study Group here is engage with the region. They're essentially arguing, if you want to fix Iraq, you've got to fix some of the turmoil that's going on in the region right now, like in Lebanon, like with the Israeli- Palestinian conflict. Those are all connected to Iraq, and they say that it is Iran and Syria that is really critical to make the difference on the ground.

It also calls for an immediate diplomatic initiative for Iraq, as well as the region, saying, look, we've got to try to put together some kind of international support group that involves the neighbors and gets some sort of international conference under way. And very key to this whole report also, Kyra, the talk of the Israeli- Palestinian conflict, because that really resonates in the region.

A lot of Arabs on the street, as well as Arab leaders, say that the U.S. doesn't have credibility when it comes to the Arab and Israeli issue. And they want to see some traction on that. And that's in the report. Specifically, too, they say talk to Iran directly, talk to Syria directly, or at least under some international umbrella.

Now, the State Department spokesman, Sean McCormack, said that they're going to take a closer look at the report, the secretary is going over it. They had no instant analysis on it, and he added that really it's the Iraqis that need to take the lead here and take the reins -- Kyra.

PHILLIPS: Zain Verjee, thanks so much.

We want to take you straight now to Milwaukee, talking about that deadly explosion. The fire chief speaking now.

(JOINED IN PROGRESS)

CHIEF WILLIAM WENTLANDT, MILWAUKEE FIRE DEPARTMENT: ... fire departments in the first operational period focused on life safety and containing the fire. On the operational side, that was accomplished early on in that operational period.

The immediate action after that was the extension of the primary search of a large facility. The building itself was approximately 100 by 500 feet, but because of the zone that was impacted, it was much larger.

The primary search was concluded during that first operational period. That concluded this morning. We are now in a second operational period that will be ongoing until approximately 6:00 p.m. this evening.

During this operational period our focus is to continue a secondary search of the entire complex, including the immediate area that was involved. We have first gone through with our heavy urban rescue team and identified areas that we can for structural integrity to search appropriately. We will now move into a phase of utilizing heavy equipment to remove debris and assess additional areas for a secondary search, looking for anything else that we find.

The Milwaukee Fire Department worked in collaboration in a unified command setting with other city agencies, including the Milwaukee Fire Department and the Milwaukee Health Department and the Department of Public Works. We stood up early in the city of Milwaukee our emergency operations center. That operations center is still stood up and will remain operational to -- throughout the second operational period, at least until 6:00 p.m. tonight.

Thank you.

Police chief?

CHIEF NAN HEGERTY, MILWAUKEE POLICE CHIEF: The Milwaukee Police Department joins others expressing sympathy to the members of the Falk Corporation, Rexnord, that were killed and injured in this situation.

The Milwaukee Police Department, of course, responded immediately upon hearing that there had been an explosion in the valley. It was our primary responsibility to ensure the safety of people, so we moved people back, shut down roads, did things of that nature to ensure that everybody would be safe.

We had 52 uniformed officers on scene taking care of those duties. In addition, we had another 25 members of our criminal investigation bureau that responded to the scene.

Now, in a case like this, there is always an investigation that occurs. This is not unusual. It is standard operating procedure. And the last briefing that I got on the ongoing criminal investigation is that this appears to be a tragic accidental situation. There is absolutely nothing to indicate that there is anything terrorism- related or criminal-related in this matter.

So, again, we express sympathy to the families of the people that were injured and killed in this situation.

And I'd also like to thank the Milwaukee County Sheriff's Department. They were instrumental in letting their squads help our squads ensure the safety of the residents that were in this area.

Thank you.

UNIDENTIFIED MALE: Chuck Matthews (ph) from the Department of Public Works.

UNIDENTIFIED MALE: Good afternoon.

The Department of Public Works also wishes to extend our condolences and sorrow to Falk and Rexnord.

Once informed of the explosion, I immediately authorized our personnel to assemble. We were mainly concerned with the structures adjacent to the property, being the 35th street viaduct and 27th street viaduct. So we had our bridge crews and our bridge engineers get out there as soon as they were allowed on those viaducts.

They made inspections. Both of those are open. We also took a look at 6th Street, 16th Street and the bridges on Canal Street.

The other thing we looked at was pressure in our water mains to make sure that the fire department had enough water to fight the fire. We do have the ability to adjust that pressure. Everything was fine there. We didn't have any problems with water.

We'll monitor our sewer and other underground facilities, although at this point in time, we're not aware of any problems. We also looked at some of the buildings, city facilities on Canal, and those didn't appear to sustain any other damages.

Right now we're standing by with equipment at the direction of the incident commander chief, Wentlandt, to assist however further is necessary.

Thank you.

UNIDENTIFIED MALE: Health Commissioner Bevin Baker (ph).

PHILLIPS: You're listening to the Department of Public Works, the police chief, also the fire chief, William Wentlandt.

This is what we can tell you right now. One person killed, dozens more injured.

Sorry, apologize, three people now reported killed, according to the chief there. And dozens more injured when this industrial building exploded in downtown Milwaukee.

Right now they're trying to clear out all the debris. They are still searching for victims, according to the police chief -- or the fire chief, rather. The police chief saying, though, they don't believe that any kind of criminal activity was related here.

We can tell you that it's still not clear how many people were working in this complex when the explosion occurred. We're working those numbers. But we can tell you, after finding out about the injuries, investigators were able to say that the blasts appeared to have originated due to a propane tank here at the Falk Corporation parts distribution center.

We'll bring you more information as we get it with regard to the investigation on this explosion. If you want to continue to listen to the live news conference that's happening right now, you can go to cnn.com/pipeline.

LEMON: A race against time in Oregon.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We knew he had left at 7:45 in the morning. If he didn't find anything, he was supposed to be back at 1:00 on Saturday. He didn't return.

(END VIDEO CLIP)

LEMON: Or has time already run out for a missing San Francisco man? The latest clues in a desperate search.

We're on it in the NEWSROOM.

PHILLIPS: No power, no relief. It's already polar in much of the Midwest. Now a fresh assault of frigid is on the way. The mercury keeps dropping. We'll keep watching it right here from the CNN NEWSROOM. LEMON: And step away from the scallions. A fast food chain gives green onions the boot after they're fingered as a prime suspect in a three-state E. coli outbreak.

Details straight ahead in the CNN NEWSROOM.

(COMMERCIAL BREAK)

LEMON: The big story today, the Iraq Study Group. That report includes 79 recommendations on U.S. policy in Iraq. Among the highlights, move most U.S. troops out of combat roles by the year 2008, bring Iran and Syria into the process through direct diplomatic talks, and reduce economic and military support to Iraq if the Iraqi government fails to meet specific goals.

Larry Diamond joins me to talk more about the Iraq Study Group report. He's a senior fellow at Stanford University's Hoover Institution.

And if I'm not mistaken, you did consult with that group. Did they take any of your recommendations into consideration?

LARRY DIAMOND, HOOVER INSTITUTION: Well, they actually accepted a lot of the recommendations of the expert advisers, including the need to put pressure on the Iraqi government to get serious about political reconciliation. And a recommendation that hasn't gotten much attention yet, and that is that the president should clearly disavow any intention of seeking permanent military bases in Iraq, which is feeding suspicion of -- among Iraqis, as to what our real intentions are.

LEMON: What about the reduction in troop levels over time? Will that help or hinder this process?

DIAMOND: There's a risk in this. I think we have to honestly acknowledge that if we reduce troop levels in the way the study group recommends, and the Iraqi army is not ready to bear the load, the situation could implode further. On the other hand, there's also risk that if we just keep doing what we're doing and absolve the Iraqis of any incentive or responsibility to assume control of their own security and to compromise on the big political issues, the situation could keep creeping towards civil war in the way it is now.

LEMON: It appears that most of the recommendations were not as the White House had said earlier that, you know, stay the course, we're not going to change. We're going to stay the course until it's done.

Speaking after that report came out, James Baker had this to say about not staying the course in Iraq.

(BEGIN VIDEO CLIP)

JAMES BAKER, CO-CHAIR, IRAQ STUDY GROUP: We do not recommend a stay-the-course solution. In our opinion, that approach is no longer viable. While we do recommend a fivefold increase in U.S. forces training Iraqi troops from, let's say, a high of 4,000 to a high of 20,000, we do not recommend increasing U.S. forces by in excess of 100,000 troops, as some have suggested.

(END VIDEO CLIP)

LEMON: Over time, you said, it could lead to chaos. Why do you believe that?

DIAMOND: Well, just look at what's happening. We've gone from a situation of a few hundred Iraqis dying every month, to 500 to 1,000, to now the estimates are 100 Iraqis dying every day, on average, which is about 35,000 a year.

LEMON: But are you saying that you disagree with the report that troop levels should not be reduced over time? Is that what...

DIAMOND: No, I'm not saying that. I endorse what the report has recommended.

I am saying we need to be honest in recognizing that there's a risk in this. That there's a risk in everything we do or don't do. And we're well past the time now where we can just continue blithely on, thinking that the current strategy is working.

LEMON: Now, there are folks -- and I talked about this to some of our other guests who are going to say, you know what? Many of the Iraqis, or at least some of the Iraqis, did not want us coming into the country as it is. And now if we don't pull back some of the troops and if we don't allow the Iraqi forces to take care of things on their own, that there may be some sanctions on our part, that we may pull some money back.

Do you agree with that assessment? Is that fair to do that?

DIAMOND: Look, here's -- yes, I think it is. And here's the reason why.

The principal problem in the country right now is political. Much more than security. And it is that there is no consensus in Iraq today on how power and resources should be shared among the different sections of the country. In particular, for example, control over and distribution of the revenue from oil and gas.

And until there are compromises, painful compromises among the different political parties, sects, and ethnic groups in the country on how to share power and resources, there is no chance of stabilizing Iraq. The country's going to keep slipping into civil war.

So unless we put these conditions on the table, you have to make compromises. You have to assume responsibility if we're going to continue to support this at the level we are. I don't think these compromises are going to happen. So I think this pressure is necessary to turn the situation around.

LEMON: OK. Larry Diamond, you consulted with the Iraq Study Group. Your assessment of this report as a whole? DIAMOND: I think it's very wise, impressive, comprehensive, learned effort. It's the best we've got. I think this is our last chance to stabilize Iraq before it slips into all-out civil war.

LEMON: Larry Diamond, thank you so much for joining us today on the CNN NEWSROOM.

DIAMOND: It's a pleasure.

PHILLIPS: A wintry storm one week, an arctic blast the next. It's not getting easier for folks in the Midwest, where trees, power lines and roads are still coated in ice.

CNN's Rob Marciano is in central Illinois.

(BEGIN VIDEOTAPE)

ROB MARCIANO, CNN METEOROLOGIST: Some tree limbs continue to come down, and debris litters roadways and yards here in central Illinois after what they're calling to be the worst ice and snowstorm since 1978. And still, after almost a week, some people here remain without power. The good news today is that temperatures are above freezing.

Take a look at this tree, one of the many hardwoods that has been damaged from this ice and snowstorm, beginning to thaw out a little today. But as that ice thaws on these weighted-down branches, that could very well snap off some of these branches and take out more lines.

Power companies saying that's one of the reasons they've been having such a hard time. It's been a two steps forward, one step back scenario. And for that reason, there are still people without power. But they hope to get a handle on it with above-freezing temperatures today before tonight, because that's when the next arctic blast expected to come in, putting the Midwest back into the deep freeze tomorrow.

Rob Marciano, CNN, Oreana, Illinois.

(END VIDEOTAPE)

PHILLIPS: Well, grab your winter coats. The mercury is heading south and fast.

Jacqui Jeras, there's way too many 18-degree temperatures in your forecast.

JACQUI JERAS, CNN METEOROLOGIST: Yes, a lot of temperatures in the teens.

(WEATHER REPORT)

LEMON: Dozens of recommendations, including some that would affect U.S. troops in Iraq. Retired Air Force major Don Shepperd joins us next in the CNN NEWSROOM. (COMMERCIAL BREAK)

PHILLIPS: Hello everyone, I'm Kyra Phillips live at the CNN world headquarters in Atlanta.

LEMON: And I'm Don Lemon.

(BEGIN VIDEO CLIP)

TONY SNOW, WHITE HOUSE PRESS SECRETARY: Stay the course is not the policy. And you know the president's been saying that for months.

(END VIDEO CLIP)

LEMON: The White House responds to dozens of new recommendations on what to do in Iraq. We're studying the study group.

PHILLIPS: We'll ask retired Major General Don Shepperd for military reaction to some of the changes it could mean for U.S. troops. You're live in the CNN NEWSROOM

But first, it's 2:30 Eastern; 1:30 Central. Fredricka Whitfield is at the breaking news desk, with a new view of that Milwaukee building explosion. Live pictures via our affiliate WITI -- Fred.

FREDRICKA WHITFIELD, CNN ANCHOR: You're looking at some of the live pictures. When we show you some of the pictures that just came in, it really just hit to the heart of really what is at issue.

We're talking about an explosion that leveled this building which is 1.5 million square feet. It's a building that was manufacturing steel products such as gears and chains and ball bearings for vehicles, et cetera.

And when you take a look at these images, it's no secret as to why this became such a deadly explosion. Three people have been confirmed killed. 30 others who were injured, and this area about the size of two and a half blocks long, was completely leveled.

A building that has been standing for more than 100 years. Has housed a number of different businesses in this industrial park, and we heard from police and fire officials earlier who say they have no reason to believe this was anything but a tragic accident. It looks like this explosion was sparked by a propane tank explosion.

And many of the people in this business smelled gas. That's why they had an evacuation preceding this explosion, but it was simply too late in order to save everyone's lives. So three people confirmed killed and 30 injured from this explosion in Milwaukee.

PHILLIPS: Okay, Fred, thanks.

LEMON: It's not working. That's how the Iraq Study Group sums up U.S. policy. The long-awaited report says the U.S. is losing ground in Iraq, losing the faith of the Iraqi people, and losing its standing in the Middle East. But there might be some ways to turn this no-win situation around. We spoke to two Iraq Study Group members just after they released that report.

(BEGIN VIDEOTAPE)

LEON PANETTA, IRAQ STUDY GROUP MEMBER: We made the decision there have to be teeth in these recommendations, because if the Iraqis fail to implement the reforms, if they fail to get a handle on the violence, there's nothing the United States can do, militarily or otherwise, that can solve those problems. They have to assume the primary responsibility to govern themselves.

PHILLIPS: Which brings in the question, is Maliki the man to be running that country? Is he strong enough? Is he able to do what he needs to do?

PANETTA: Well, that's a -- that's a good question and it's one we asked a number of people. We had conversations with Maliki ourselves. I have to tell you that I think the general sense is he's the best we have going for us right now. But I think the jury is probably still out on whether or not he has the capacity to govern.

LAWRENCE EAGLEBURGER, IRAQ STUDY GROUP MEMBER: I think that's correct. But one other thing you need to keep in mind is, we keep saying that Iraq is a sovereign government now. It has a sovereign -- it's a sovereign state. They have to govern their own affairs.

And at the same time, if we tell them now, but you're going to have to get some different prime minister because we don't like this one, you're kind of making it a little bit difficult to demonstrate that they are in fact independent.

I think Maliki's got a big problem. But at the same time, I think so do we, if we don't understand that he was selected by the Iraqi people now, and it's now their turn to have him perform.

PHILLIPS: And some will argue that, saying it was actually the U.S. that selected him, not the Iraqi people. Obviously we can debate that.

EAGLEBURGER: Yes.

PHILLIPS: As you know, Senator Joseph Biden, Democrat from Delaware, already coming forward criticizing this report. Let's take a listen to what he had to say.

EAGLEBURGER: Already?

(BEGIN VIDEO CLIP)

SEN. JOSEPH BIDEN (D), DELAWARE: I must tell you I have one concern. Ultimately, there is a requirement for a political settlement. I recommend to all of you to read the beginning portions of the Iraqi constitution. It calls for, their words, a federal system, with "a weak central government." The notion that we are going to have a time when we can train up an Iraqi national police force or Army that is going to provide security and safety in Anbar Province and in the Sunni regions simultaneously is not going to happen.

(END VIDEO CLIP)

PHILLIPS: Mr. Secretary, critics say, look, you've got to pull U.S. troops out so it pushes Maliki to make that effort to get the police and the military ready. Otherwise, forget about it, he's going to depend on the U.S. to do everything.

EAGLEBURGER: Well, the fact of the matter also is, if we move out too fast, it can turn into absolute chaos, and then we have certainly not accomplished what we're trying to do, which is to bring some stability to Iraq and to that region. And the report has now made it clear that there has to be a redistribution of troops.

There have to be troops that move out. There have to be troops that are put into different activities than was originally the case. But at the same time, it doesn't seem to me, and it didn't seem to the panel, you can just announce to the Iraqis that tomorrow morning, if you don't perform, we're going to get nasty and go home.

That is not the way this is going to work. And if, in fact, we move too fast, it's chaos, and then it is a serious problem.

PANETTA: I think there really is an opportunity for consensus here. Whether we talk to General Abizaid, whether we talk to General Casey, whether we talk to Democrats like Ike Skelton or Carl Levin on the Hill, I think all of them recognize that the responsibility here has to rest with the Iraqis, and particularly the Iraqi army.

If we're going to make that work, if they are going to control violence, we have to embed our troops. We've got to be able to train them so that they're combat ready to deal with that. That's the only hope we have of ultimately being able to redeploy and take all of our combat brigades home.

EAGLEBURGER: Correct.

LEMON: And gentlemen, both of you, just real quickly, because we're running out of time here, but James Baker saying this is no way -- this recommendation is -- not staying the course is not the recommendation here of this.

PANETTA: That's correct.

EAGLEBURGER: Very important.

PANETTA: This is not staying the course. This is not cut and run. This is a new way forward. And hopefully people will pay attention to it.

EAGLEBURGER: That's correct. PHILLIPS: Support, not combat. The Iraq Study Group calls for a whole new mission for U.S. troops. Let's bring in our military analyst, Major General Don Shepperd for a strategy session. So, what's your first impression, general?

MAJ. GEN. DON SHEPARD (RET)., CNN MILITARY ANALYST: I tell you, Kyra, I think this report is right on the mark. It is powerful. It is dramatic. It gives us a chance to change direction there. It also says right off the bat that there is no simple solution to Iraq, but on the other hand, staying the course, winning, bringing home the coon skin is not in the cards. So I think this really offers us an opportunity and is clearly on the mark.

PHILLIPS: More troops or less troops? William Perry put it this way.

(BEGIN VIDEO CLIP)

WILLIAM PERRY, IRAQ STUDY GROUP MEMBER: We're talking about an increase from about 3,000 or 4,000 we now have to maybe 15,000 to 20,000. So it's about an extra 10,000 troops we're talking about. Those can come out of the combat brigades that we now have there, if the commanders in place determine that's the best way to do it. There is a training time involved so there will be some lag time. But it can be done, I believe, with the existing combat brigade troops.

(END VIDEO CLIP)

PHILLIPS: So what would those extra troops do Shep?

SHEPPARD: Basically, you're talking about not increasing U.S. troops in any way, but taking the combat forces, stopping the combat, and concentrating on just training the Iraqis. I've traveled with these Iraqi forces. They are very good. They need some backbone. They need some time. They need support, what have you.

But we would increase the training from about 4,000 troops that are now embedded with the Iraqis up to perhaps as many as 20,000 or perhaps even more. We would do it by using the combat troops, not on combat, but on embedding them with trainers and then conducting combat operations only with the Iraqis. I think this is really smart, Kyra.

PHILLIPS: Do you agree with analysts that say, look, you've got to get U.S. troops out of there a lot quicker and get more of them out of there because it will force Maliki to focus on his Iraqi police and military and get them trained and ready to go? Otherwise he'll just keep depending on U.S. forces?

SHEPPARD: Yes, that sounds real good, but that's a very difficult thing to do. I think that General Zinni said the other day, hey you can't take a wounded warrior and tell him to keep fighting and do better and abandon him. And so, you know, saying that the Iraqi government and al-Maliki has to do these things, we're setting timetables and milestones and what have you. Doesn't mean they are going to be able to do it and be strong enough, but clearly the long- term solution is to make the Iraqi army and Iraqi police force more capable, responsible for their own security, and this is a step in the right direction.

PHILLIPS: All right. The Iran factor. Hamilton puts it pretty clearly in this sound bite.

(BEGIN VIDEO CLIP)

HAMILTON: Both Iran and Syria have a lot of influence in the region and have a lot of impact on Iraq. Iran probably today is the national power that has the single greatest influence inside Iraq today. We will be criticized, I'm sure, for talking with our adversaries, but I do not see how you solve these problems without talking to them.

(END VIDEO CLIP)

PHILLIPS: Will that ever happen, the U.S. talking to Iran?

SHEPPERD: Well, I don't know. But, again, the study group is right on the mark. You have to talk to people diplomatically.

Now, I assume that some of this has been going on behind the scenes, but you've got to talk to the mean, the vile, the disgusting. And clearly the long-term problem hanging over in the Gulf beyond Iraq is the Iranian nuclear program. It's very, very serious. We have to talk to these people. You can't say preconditions and say you have to drop your nuclear program before we'll talk to you. That's just dumb.

I think the Iraqi study group has got it just right, talk to the people in the region, involve them, doesn't mean it will go anywhere but it's essential.

PHILLIPS: But Shep, you're a general. I mean, how do you tell a country that's funneling weapons to the insurgency in Iraq, hey, let's talk? We need you to stop this.

SHEPPERD: Yes, tough duty. And you don't know that they will, but you've got to try. You have to meld diplomacy, politics and the military and the threat. Use the carrot and stick approach. You make it worth their while. But for goodness sakes, Kyra, you try. You absolutely try.

And our diplomacy has gone awry. It's gone awry in North Korea, it's gone awry in Iraq, it's gone awry in the Israeli/Palestinian conflict. We have to get started back again diplomatically and start talking to people. We have become the world's pariah rather than the world's savior and trying to do good things, we're doing bad things, Kyra.

PHILLIPS: Oh, it's divided this country as well. Major General Don Shepperd, thanks for your time.

SHEPPERD: Pleasure.

PHILLIPS: Well, you can get more on the Iraq study group's report at CNN.com. In fact, you can read the entire report. See for yourself the group's recommendations and predictions and interact with others while you're there. You can also see who in that group, you can get more at CNN.com.

LEMON: Step away from the scallions. A fast food chain gives green onions the boot after they're fingered as the prime suspect in a three-state E. coli outbreak. Details straight ahead in THE CNN NEWSROOM.

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LEMON: No green onions for you: that's the latest move by Taco Bell Restaurants nationwide in the wake of an east coast E. coli scare. CNN's Allan Chernoff is following the story from New York.

Hey, Allan.

ALLAN CHERNOFF, CNN CORRESPONDENT: Good afternoon. Well, Taco Bell is pulling green onions from all of its more than 5800 restaurants, this after three tests found indications of E. coli in samples of green onions.

But this is not conclusive evidence that green onions, or scallions, in fact, caused this E. coli outbreak. The people who got sick actually ate their food as long as three weeks ago. So the FDA and state health officials are now focusing their investigation on Taco Bell's food distributor, McLean Food Service, also in New Jersey. And they are also looking at the processor of produce for Taco Bell, which is Ready Pac Produce in New Jersey.

About 50 people have been affected by E. coli in New York, New Jersey and Pennsylvania, mainly children.

(BEGIN VIDEOTAPE)

CHERNOFF (voice-over): Blood transfusions have made all the difference for an 11-year-old boy at Newark Beth Israel Medical Center. On Tuesday he pulled out of critical condition

DR. JEREMIAS MURILLO, NEWARK BETH ISRAEL MED. CTR.: His kidney was not functioning properly, and he was severely, severely anemic, and that all has cleared up at this time.

CHERNOFF (on camera): But he'll be okay?

MURILLO: Yes.

CHERNOFF (voice-over): The boy ate at a New Jersey Taco Bell on November 17th. Five days later he began suffering from diarrhea. A week later when doctors in Newark began treatment, he was in critical condition.

MURILLO: Most common source in this is poorly cooked hamburgers actually, to tell you the truth. We get intermittent cases like this because people like to eat their hamburger kind of on the red side, you know, so that's really a no-no.

CHERNOFF: The latest E. coli outbreak appears to be spreading with four new cases reported Tuesday in New Jersey and another four in Pennsylvania. That brings the total number of victims in New York, New Jersey and Pennsylvania to about 50. Many of them are children who ate at Taco Bell restaurants?

JONATHAN BLUM, TACO BELL SPOKESPERSON: We're obviously very concerned for the health and welfare of all of our customers and employees, and our thoughts are with the people who became ill as a result of this. As soon as we learned of this incident, we immediately began throwing out food, cleaning the restaurants. We voluntarily closed some restaurants.

CHERNOFF (on camera): Health officials are investigating. They concede they may never find out precisely what caused the E. coli epidemic. Was it tainted beef or lettuce that was poorly washed? The food that was eaten in these cases is all gone, so it can never be tested.

(voice-over): That was not the case during the last E. coli outbreak in September, when bags of spinach were found to be contaminated with E. coli, an epidemic that killed three people. Still, many of taco bell's loyal customers don't seem concerned.

UNIDENTIFIED MALE: There's so many things in the world today that can kill you, and Taco Bell is not one that I'm really worried about.

UNIDENTIFIED MALE: It's cheap food and it's good, filling, so I -- you know, I'll take my chances.

(END VIDEOTAPE)

CHERNOFF: But the New Jersey Department of Health doesn't want Taco Bell to take any chances. In fact, just a few minutes ago it put out a press release saying that it wants Taco Bell in New Jersey, all restaurants in New Jersey, to throw out all of their food and sanitize their facilities -- Don.

LEMON: Oh, wow. All right, Allan Chernoff from New York, thank you, sir.

PHILLIPS: His warning came too late to save a friend's life. Now he fears the assassins are after him. New leads, dead ends: we're digging for every detail on the former Russian spy case. The latest from London next in the NEWSROOM.

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A.J. HAMMER, CNN ENTERTAINMENT CORRESPONDENT: I'm A.J. Hammer. Coming up, a big Hollywood couple is out of sync. That's just ahead from the CNN NEWSROOM.

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LEMON: Vaughniston, gone-iston. The end of a Hollywood relationship begins. Out showbiz update -- "SHOWBIZ TONIGHT's" A.J. Hammer joins me now.

Why does it always have to be a contraction between the two stars?

HAMMER: I don't know. And it annoys me, too.

And I think a little -- a few people are a little disappointed about this, with all that Jennifer Anniston has been through. Vince Vaughn is truly one of the nicest guys in the business. I'm sad to report, however, the two have parted ways.

The stars of the comedy "The Breakup" have indeed broken up. The popular pair met last year while they were filming that romantic comedy. Their courtship blossomed off-screen for more than a year. But while they are no longer a couple, reps for both Jen and Vince made it clear to CNN they do continue to remain good friends.

Well, two-time Academy Award winner Meryl Streep was honored yesterday with the Sherry Lansing Leadership Award. This was at the Women of Entertainment Breakfast, which took place in Beverly Hills. It was, of course, an invitation-only event. And it recognizes the industry's top ladies.

(BEGIN VIDEO CLIP)

MERYL STREEP, ACTRESS: Oh, my god! Oh, my god! Why do they make a women's award in this shape?

I'm not the leader of anything or anybody. I can't even get people to put their dishes in the dishwasher.

HAMMER (voice-over): A couple of generations of A-List ladies were right there on hand to salute their acting mentor, Ms. Streep, who's also the mother of four children. Streep has received 13 whopping Oscar nominations over the years. She won for "Kramer Vs. Kramer" and "Sophie's Choice". Most recently, of course, she starred in "The Devil Wears Prada". If you haven't seen it yet, I insist that you do. It's going to be out on DVD next Tuesday. Just a funny, fun a funny movie.

Well, coming up tonight on "SHOWBIZ TONIGHT", Britney behaving badly. The question is, who's checking in on her two kids? Will Child Services get involved? We'll have the latest for you, on TV's most provocative entertainment news hour, which is of course "SHOWBIZ TONIGHT".

(END VIDEO CLIP)

(on camera): We'll see you tonight at 11:00 p.m. Eastern on CNN "HEADLINE PRIME".

LEMON: Wow, that was a very interesting topic, child services. Wow.

And by the way our contraction here, the producer mine here is Phlemon.

HAMMER: I think that works, Phlemon.

PHILLIPS: That makes you think, like -- it sounds like phlegm, though. That's gross.

HAMMER: Maybe that's why it works.

LEMON: A.J., with quick one.

PHILLIPS: Come up with a better one.

LEMON: Thank you. Thanks, A.J.

HAMMER: You got it.

PHILLIPS: Well, rival fans rocked the house.

(BEGIN VIDEO CLIP)

(voice-over): Reactions in the stands at this basketball game. We'll have it for you. Stick around.

(END VIDEO CLIP)

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