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American Morning

Reaction, Analysis Continues on ISG's Report To American People About Situation in Iraq

Aired December 07, 2006 - 07:00   ET

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


LEE HAMILTON, CO-CHAIR, IRAQ STUDY GROUP: I think our principle point here is that whatever you do with regard to Iraq, you have to do comprehensively. You cannot solve this problem by adjusting the troop levels here and there. You cannot solve it by more or less, or a more skillful implementation of economic construction -- reconstruction money. You can't solve it just by dealing with the political problem. You have to have a comprehensive approach.
And in many ways, that's what's been lacking in our policy and we tried to emphasize that you've got to deal with the political, military, economic aspects of this problem in order to be successful. And you have to implement these things skillfully and you have to implement them promptly.

Time is running out here. This is a deteriorating situation. We've got to move promptly. It's not a matter of months, it's a matter of weeks, maybe even days.

SOLEDAD O'BRIEN, CNN ANCHOR, AMERICAN MORNING: Congressman Hamilton and Secretary Baker, Gentlemen, thank you for talking with us. They are the co-chairs of the Iraq Study Group. Appreciate your time this morning.

JAMES BAKER, CO-CHAIR, IRAQ STUDY GROUP: Thank you very much, Soledad.

HAMILTON: Thank you.

S. O'BRIEN: The next hour of AMERICAN MORNING starts right now.

MILES O'BRIEN, CNN ANCHOR, AMERICAN MORNING: A war summit. President Bush meets with British Prime Minister Tony Blair this morning, talking strategy and response to the Iraq Study Group report.

S. O'BRIEN: A father's heroic sacrifice, that missing man found dead in the Oregon wilderness, not far from where he left his family to try to find help.

M. O'BRIEN: It's murder after all. That poisoned Russian spy will be buried today as investigators find radiation in yet another spot, the British embassy in Moscow.

S. O'BRIEN: And Arctic air slams back into the Midwest, battering residents. Some of whom are still without heat and power on this AMERICAN MORNING.

Welcome back, everybody. Thursday, December 7th. I'm Soledad O'Brien.

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

We just heard from the Iraq Study Group, commission Chairmen Baker and Hamilton, kicking off another day of debate on their recommendations for the war in Iraq. At the White House, President Bush meets with British Prime Minister Tony Blair to discuss those ideas. The president's Press Secretary Tony Snow promising the White House will come out with a revamped strategy in Iraq within the next two weeks.

Chairman Baker and Hamilton will take questions from the Senate Armed Services Committee later this morning on Capitol Hill.

Let's begin at the White House, though, the Blair-Bush meeting. CNN's Elaine Quijano is live for us from there.

Good morning, Elaine.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT, AMERICAN MORNING: Good morning to you, Miles.

He is one of the U.S.'s staunchest allies in the war on terror and, of course, Iraq. British Prime Minister Tony Blair today will sit down with President Bush in a visit that comes one day after the Iraq Study Group released its sobering report.

The White House insists that the timing of Mr. Blair's visit is coincidental, but the ISG's findings are sure to be a main focus when the two leaders sit down in the Oval Office later this morning. The prime minister of course was actually interviewed via video by the Iraq Study Group and the U.K. has some 7,000 troops in Iraq.

Of course, prime minister Blair is also taken some political heat back home for his steady support of the Bush administration's Iraq policy, but there could be fissures in that united front. Before leaving for Washington, the prime minister said he agreed with the incoming Defense Secretary Roberts Gates' statement that the United States was not winning the war in Iraq. And Blair has also signaled he'd like to see a more open approach in engaging Iran and Syria, something, of course President Bush has been reluctant to do.

The prime minister believes the problems in Iraq are linked to resolving the Israeli-Palestinian conflict and taking a look at the issues facing the neighbors in that region. So all of that, Miles, on the table when President Bush sits down with Prime Minister Blair in the Oval Office, and then the two leaders will appear before reporters later this morning -- Miles.

M. O'BRIEN: Elaine Quijano at the White House. We'll have live coverage of that news conference, as well, later -- Soledad.

S. O'BRIEN: Within the study group report there's concern about just what will happen if the U.S. leaves too soon. And the sectarian violence spreads. Iraq is in the center of a potential powder keg, surrounded by Iran and Syria, Saudi Arabia. Each with different religious factions, now fighting in Iraq. Let's get right to Barbara Starr she's at the Pentagon this morning.

Good morning, Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT, AMERICAN MORNING: Good morning to you, Soledad.

It is a concern by the incoming secretary of Defense by the Iraq Study Group, and by senior U.S. military commanders.

(BEGIN VIDEOTAPE)

STARR (voice over): From Iraq to Lebanon, is the Middle East headed for a regional war?

ROBERT GATES, DEFENSE SECRETARY DESIGNEE: The next president of the United States will face a slowly but steadily improving situation in Iraq and in the region, or will face the very real risk and possible reality of a regional conflagration.

STARR: Last week, in Iraq, General John Abizaid had the same worries.

GEN. JOHN ABIZAID, CMDR., U.S. CENTRAL COMMAND: Yes, I think the concerns about it spinning into a broader conflict are still there.

STARR: And the Iraq Study Group reported bluntly warns if Iraq collapses, that neighboring countries could intervene, Sunni-Shia clashes could spread. It may be happening already, and military commanders blame Iran.

BRIG. GEN. JOHN CUSTER, DIR. OF INTEL., CENTRAL COMMAND: I think Iran wants to have it both ways. They want to pursue diplomatics, and be part of the negotiations, and at the same time, resource the resistance, resource the Shia militias that provide resistance to the coalition.

STARR: General Abizaid also warns about Iran's support for Hezbollah and Lebanon as part of the broader unrest.

ABIZAID: It's a recipe for disaster, and destabilization. We can't really afford any more destabilization in the Middle East, whether it's Iraq or Lebanon.

STARR: After five years of war, military options are limited.

SEN. JOHN MCCAIN, (R-AZ), ARMED SVCS. CMTE.: Whether you look at Iran, North Korea, the cries this Lebanon, as we speak, the list goes on and on, it would be very difficult for us to envision us being capable of handling another contingency.

(END VIDEOTAPE)

STARR: And Soledad, U.S. military commanders say this really isn't a theoretical possibility of a broader conflict. It's something they are very concerned about even this week, as they are watching very closely that crisis in Lebanon, as there are continuing Hezbollah demonstration there, trying to bring down that moderate government. So this is something that they already are very concerned about -- Soledad.

S. O'BRIEN: Barbara Starr at the Pentagon for us. Thank you, Barbara.

Miles.

M. O'BRIEN: In the Midwest, they are waking up to single digit temperature this is morning. Wind chills well below zero. Power crews still unable to get the lights and the heat on for tens of thousands of homes, after that ice storm, one week ago today now. Rob Marciano has de-thawed in Decatur, Illinois. I don't know if he's so de- thawed, but he's here to give us a full report.

Good morning, Rob.

ROB MARCIANO, CNN METEOROLOGIST, AMERICAN MORNING: Good morning, Miles.

Tough to de-thaw just about anything. As you can imagine in this sort of cold everything starts to get a little bit brittle, even electronics.

Boy, I'll tell you what, Midwesterners waking up to some -- well, a rude awakening. Take a look at our handy-dandy thermometer. Yesterday, if you joined us, it was up around close to 40 degrees when we were teeing off when the sun was coming up. Now, it's been dropping all morning long from 20 down to about 12, that does not include the wind chill. Wind chills have been dropping well below zero. And that will continue throughout the day.

But one thing Midwesterners cannot say is that they didn't know it was coming.

(BEGIN VIDEOTAPE)

MARCIANO (voice over): Hopes were high for milder weather Wednesday morning, but by noon, the winds shifted. The temperature started to drop.

J.T. SAVAGE, EMPLOYEE, AMEREN ENERGY CO.: When you're busy working you don't really notice it.

MARCIANO: J.T. Savage and other utility workers have been braving the cold for nearly a week to restore electricity to areas ravaged by the first ice and snowstorm this season.

(On camera): How many times today you been up in the bucket?

SAVAGE: All day.

(Voice over): As the numbers without power dwindle around Decatur, crews go house to house reconnecting electricity, but power is still a precious commodity in these parts.

SAVAGE: I just turned their lights on. Now they're back to normal.

MARCIANO: Normal is something Lisa Elmore and Rick McLere haven't felt for days. This is where you slept for a couple of nights?

LISA ELMORE, RESIDENT, DECATUR, ILLINOIS: Yep.

RICK McLERE, RESIDENT, DECATUR, ILLINOIS: Yep. We had blankets and seats down there, of course.

MARCIANO: They spent two nights living out of their van.

ELMORE: He drew that Saturday night, you know? Told me to cheer up, we're going to make it. We're going to be OK.

MARCIANO: And now, they're OK, after their home was damaged in the storm, the Red Cross helped them find another warm apartment. The best part? It's free for the next month.

(On camera): Just an apartment building, holding out their hand for you?

McLERE: Yep, they held out their hand for us, yeah. Not only did they held their hand out, I mean they did it with a silver spoon.

ELMORE: I hope everybody else is as lucky as we are.

MARCIANO: The Campbell family feels lucky, too.

RALPH CAMPBELL, RESIDENT, DECATUR, ILLINOIS: We had nine, it's two adults and eight kids.

MARCIANO: After six nights in a home without power, the Campbells and their eight children are staying at a temporary shelter in a local church.

(On camera): How did that make you feel when they told you, you could come get something to eat, sleep in a warm bed, and get your wife's medicine?

CAMPBELL: That right there, sounded good.

(LAUGHTER)

MARCIANO (voice over): Especially as temperatures plummet again, and going without power and heat could be downright dangerous.

(END VIDEOTAPE)

MARCIANO: Dangerous indeed, over the past week, 18 lives have been claimed in Missouri and Illinois due to the cold. Now it's the coldest air of the season, colder even than the air mass that came in last week and 50,000 or so residents of Missouri and Illinois still without power.

After going without with electricity crews, yesterday, I have gained a new appreciation for what they have to go through. There are some people who are frustrated but, I mean, there are still trees that are down, dangling off of power lines. It's literally a house-by-house basis. And with tens of thousands of people still without power, that just takes a long time. And today, with this cold, and with this wind chill, it's going to be an even tougher job for electricity crews when they head out the door this morning.

M. O'BRIEN: It's an excruciating and very dangerous wait, isn't it, Rob?

MARCIANO: It is, yes.

M. O'BRIEN: Thank you, Rob Marciano in Decatur, Illinois.

Chad will join us in a moment to take a look at that major cold blast and it's headed East -- Soledad.

S. O'BRIEN: Well, it was the very worst news, the news that people were really fearing. The body of 35-year-old James Kim has now been recovered, not far from the car where Kim and his wife and his daughters were stranded in Oregon.

Kim set off in a desperate attempt to get help. Today, his co- workers at the popular tech website, C-Net.com, are stunned by the loss.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This has been a heart-wrenching experience for everyone involved. And I know that I speak for everyone at C-Net Networks when I say that James Kim was a hero and we will miss him greatly.

UNIDENTIFIED FEMALE: We really thought there was going to be a good outcome and so it's been a really hard afternoon and there's a lot of people inside that are grieving.

(END VIDEO CLIP)

S. O'BRIEN: As you could imagine the discovery of his body took a very emotional toll on some of the searchers who have been helping out.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: At 12:03 hours today the body of James Kim was located down in the Big Windy Creek.

Most of us have breathed and lived this for days. And yeah, you do take it personal and it's been tough.

(END VIDEO CLIP)

S. O'BRIEN: The results of an autopsy to determine just exactly how James Kim died are expected today -- Miles.

M. O'BRIEN: Happening this morning, Taco Bell is blaming green onions for that E. coli outbreak. The number of people sick, now numbers 99, that's according to investigators in three states. And that comes from "The New York Times" Green onions are being pulled from all Taco Bells; 5,800 of them nationwide. Two suppliers in the Northeast are being investigated, and the onions may have come from a single supplier in California.

A funeral today for poisoned former spy Alexander Litvinenko. The funeral in a London mosque. Litvinenko converting to Islam in his last days. Scotland Yard is now officially investigating the Litvinenko's poisoning death as a murder.

It looks like a go for the Space Shuttle Discovery, weather permitting, that is. NASA says the shuttle has a clean bill of health, ready for tonight's launch, 9:35 Eastern Time. Low clouds, however, could scrap the launch. The shuttle needs enough visibility in case it has to return to the launch site for an emergency landing. This is the first night shuttle launch in four years.

December 7th, the date that lives in infamy; 65 years later now, on this day in 1941, the Japanese attacked Pearl Harbor, drawing the United States into World War II, about 2,400 were killed, 21 ships sunk, or severely damaged. Pearl Harbor survivors, who usually gather every five years say this will probably be their last reunion. Most now in their 80s and 90s -- Soledad.

S. O'BRIEN: Ahead this morning the latest on the bitter cold moving across the country. Severe weather expert Chad Myers has a look at the forecast for us.

Plus much more on the Iraq Study Group's recommendations; 79 recommendations in all. What's it going to mean for U.S. troops on the ground? We'll have a "Strategy Session" from a former NATO commander, straight ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Welcome back, everybody. It's quarter past the hour. If you're about to head out the door let's get a check of the forecast from Chad at the CNN Weather Center.

(WEATHER REPORT)

M. O'BRIEN: Time is running out. The chairmen of the Iraq Study Group, Jim Baker and Lee Hamilton, say the U.S. needs to change strategy in Iraq perhaps in a matter of days.

(BEGIN VIDEO CLIP)

BAKER: I don't think you can make a judgment as to whether we're winning or losing, frankly. But I think you can make the judgment that we are in the midst of a war. And that if we don't take some actions here, we suggest a number of actions, quite frankly that differ from present policy. And we say that action ought to be taken with respect to these recommendations urgently, if we want to achieve success in Iraq.

(END VIDEO CLIP)

M. O'BRIEN: But is their report the right prescription for success? For that matter, what's the definition of success at this point? Retired Army General George Joulwan is a former NATO commander, with experience in Bosnia, El Salvador, and Vietnam. He joins us from Washington.

General Joulwan, good to have you with us on the program.

GEN. GEORGE JOULWAN, U.S. ARMY (RET.), FMR. NATO COMMANDER: Good morning.

M. O'BRIEN: There's been mixed reviews on this report. I want to share with you one comment, this comes Heather Wilson, she's a Republican congresswoman from New Mexico. She says this: "Their recommendations range from the blindingly obvious to the naive and simplistic, to the interesting but underdeveloped. I was expecting a steak dinner and we got hors d'oeuvres. Do you agree with that?

JOULWAN: No, you don't. I think this panel has done a great service for not only the country, but for the troops.

What they have tried to do is elevate this to the political level. We need to have political clarity here, and I think this group has done that. The troops on the ground will continue with the mission as defined by their commanders, but what's been lacking here, Miles, is political clarity. And I think this is an attempt to get it.

M. O'BRIEN: So, it's not a military problem, it's a political problem in your view?

JOULWAN: It's always been a political problem. We have been too quick to pull the military trigger all the time without understanding the diplomatic, the political side of what has to be done. And this report hopefully gets us in the right direction. They're very clear. What we're doing now is not working. I think most would agree with that.

I think the troops need to understand that there's a wider issue going on. You've talked earlier about a regional context. Let us get, then, a regional political and diplomatic strategy to match that. That's what this report outlines and I agree with it.

M. O'BRIEN: The report is shocking in some respect, I suppose, to some, for how dire the assessment is. It talks about the violence on the increase, the government being ineffective, U.S. abilities diminishing. That's just, gloss it is over into three points. You read the report and what it paints it a grim picture there. The gist of the report, and the assessment, do you agree with that? Is it that dire?

JOULWAN: Well, I it's not working. And I agree with that part of it. What we have to do is elevate the whole situation. And I think what has to happen now is a series of steps that are much more inclusive than just the military. There are things that concern me in the report. In Bosnia, for example, the Clinton administration and NATO said to me you have one year. And this report also says that by 2008, we'll start redeploying or should redeploy some combat forces.

What the military commanders and the Joint Chiefs of Staff are working on a report they need to then say, at that point, a year from now, where are we with regard to the mission? With regard to the end state we wanted in Iraq? And then they need to be brutally honest and say if you withdraw now, here are the risks in doing so. That's what we owe our political masters. But this report gets us started down that track and I think it's a good effort.

M. O'BRIEN: Final thought here, is there something you wish were in that report that you didn't see?

JOULWAN: Not really. Because it really covered the landscape. I, too, am concerned with what's happening in southern Lebanon, the with the Israeli/Palestinian issue. These are all interconnected. And they're interconnected politically, diplomatically and, by the way, militarily. We need to approach it that way. And I think this report points us in that direction. It's not totally everything you would want, but it's a good start and I hope the Bush administration takes that aboard.

M. O'BRIEN: General George Joulwan, thanks for your time, sir.

JOULWAN: Thank you.

M. O'BRIEN: Soledad.

S. O'BRIEN: Ahead this morning, the Big Apple's bit move, striking literally at the heart of doughnut lovers and pizza fans everywhere. Why are we at war with trans fats, and why is it the government's problem anyway?

Also, we're "Minding Your Business". Ali Velshi with details on a $200 million mistake at Home Depot.

And our holiday travel guide, a closer look at those all- inclusive dream vacations for the whole family. That's straight ahead. Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: Oh, it's out. Home Depot finally discloses the results of its options investigation. Ali Velshi's "Minding Your Business". It's not pretty.

ALI VELSHI, CNN FINANCIAL CORRESPONDENT, AMERICAN MORNING: I was digging around my bedroom the other day and sound found a sock under my bed, been there for some time. Home Depot found $200 million in backdated stock options. But they're bigger than me.

Home Depot has done this investigation starting back in 1981, to now, they have found over a 26-year period they had $200 million in unrecorded stock options.

You know, it's typical for workers and executives to get stock options as part of their salary. It gives you the right to buy a certain amount of the company stock at a particular time, and particular price. And the stock if it increases in value, you cash in, that's not a bad thing.

The analogy, let's say, is like somebody giving you a bet on a horse. Go to the race on Sunday, I've paid for your bet on such and such a horse. That's what an option is. Options backdating is betting on a horse after the race has been run. It's a big problem.

M. O'BRIEN: There's a good chance you'll win.

VELSHI: In fact almost always you win. If you're backdating options and not winning, find another line of work.

M. O'BRIEN: You better start looking for socks.

VELSHI: Yes, there are about 160 companies are under investigations for this. This may not, by the way, this particular backdating ironically may not apply to the current CEO Bob Nardelli, who has had his own heat for his pay package, which includes a guaranteed bonus. I've been trying for some months to understand what a guaranteed bonus is. It sounds like a salary to me.

M. O'BRIEN: A bit of an oxymoron.

VELSHI: Yes. I know that some people say that his pay package is disproportionate to what he does for the company. It's been not a good year for them. Earlier this year at a shareholder's meeting the company decided not to take questions from shareholders, which kind of defeats the purpose for paying for the trip and the hotel. They also decided not to have the board of directors show up to the meeting. They've reversed those unwise decisions.

S. O'BRIEN: Yes, that was a bad PR move.

M. O'BRIEN: They were acting like their store employees. They don't answer questions.

VELSHI: Yes, that's right. They were kind of just ignoring everybody. Right. Home Depot's got some work to do.

S. O'BRIEN: What? I just work here. What do you want?

M. O'BRIEN: How am I supposed to know?

All right. Thank you, Ali.

VELSHI: See you in a bit. Hey, I'm going to be talking about Victoria's Secret when I come back.

M. O'BRIEN: Oh! That's such good news. That's a tease. Thank you.

VELSHI: That is a tease.

S. O'BRIEN: I'm going to go out on a limb and say, will there be videotape?

VELSHI: Of course, there's always videotape of Victoria's Secret.

M. O'BRIEN: All right. It's a family show, Ali.

Coming up, should the government be in charge of what you eat? We'll talk with the doctor at the center of the fight against trans fat, that's ahead.

(COMMERCIAL BREAK)

(NEWSBREAK)

S. O'BRIEN: Getting word this morning that 11 U.S. soldiers died in an especially violent day in Iraq, the same day the Iraq Study Group released its report. About a half hour ago, we spoke with the group's co-chairman James Baker and Lee Hamilton, who expressed a sense of urgency that action on their recommendations, all 79 of them, should be taken in days, not weeks.

(BEGIN VIDEOTAPE)

S. O'BRIEN: In the report you call for major, major changes on the diplomatic front, specifically, page 50, engaging Iran, engaging Syria, and yet we have no diplomatic relationship right now with Iran. We have an ambassador in Syria's who's been pulled out of that country. What's the -- what are the consequences if in fact the administration does not reverse their position on that right now? What's the fallout going to be?

JAMES A. BAKER III, IRAQ STUDY GROUP CO-CHAIR: Well, we make the recommendation because we think it would help the situation, and we know it would help the situation in terms of the broader problems in the broader Middle East.

Now, be careful that you understand here what we are and are not suggesting with respect to Iran. We are not suggesting broad-based, one-on-one discussions with Iran about every subject we have between us. In fact, we say that the nuclear problems should be left in the United Nations Security Council.

All we're suggesting with respect to Iran is that they do what they did with us pursuant to our discussions with them in Afghanistan, and we think they ought to do the same thing in Iraq. They'll probably say no. If they do, fine. The world will see their rejectionist attitude.

S. O'BRIEN: You make it clear in the report, gentleman, that you would like to see all 79 recommendations implemented fully. The president has said he's waiting to hear still from the Joint Chiefs report. He's still waiting to hear from the National Security Council, and that they're going to kind of pull together -- I'm quoting his spokesman -- pull together something from that.

What would be the fallout if he does not take your report, implements 25 of these recommendations, or 62 of the recommendations, not all 79, as you make clear you'd like to see?

LEE HAMILTON, IRAQ STUDY GROUP CO-CHAIR: Well, we're not the source of all wisdom on Iraq. There will be a lot of other good suggestions, I'm sure, coming to the president and he'll have to evaluate it.

I think our principal point is whatever you do with regard to Iraq you have to do comprehensively. You cannot solve this problem by adjusting the troop levels here and there. You cannot solve it by more or less, or more skillful implementation of economic construction, reconstruction money. You can't solve it just by dealing with the political problem. You have to have a comprehensive approach, and in many ways, that's what's been lacking in our policy, and we tried to emphasize that you've got to deal with the political, military and economic aspects of this problem in order to be successful. And you have to implement these things skillfully, and you have to implement them promptly.

Time is running out here. This is a deteriorating situation. We've got to move promptly. It's not a matter of months; it's a matter of weeks, maybe even days.

(END VIDEOTAPE)

S. O'BRIEN: Baker and Hamilton are going to testify before the Senate Armed Services Committee in just about two hours, and CNN's going to carry that for you live.

They said time is running out. So what does this all mean for the troops in Iraq?

Let's get right to CNN's Nic Robertson. He's in Baghdad this morning.

Nic, good morning.

NIC ROBERTSON, CNN SR. INTL. CORRESPONDENT: Good morning, Soledad.

Well, for the troops, it means some of them are going to be very likely moved across from combat into training Iraqi forces. One of the problems there over the years has been there aren't enough translators to go around. That's still an issue here.

Those were our surveillance helicopters flying over the city.

That's still an issue with the translators. Ramping up the number of troops to train Iraqis still faces that challenge. It's been the Achilles' Heel of trying to get Iraqis ready to take up security themselves.

We're also seeing here the politicians are not jumping into commenting very quickly into the survey. The prime minister here is seeming to take the lead. His spokesman has said that he wanted to review the whole study before he gives some conclusions.

Interestingly, Abdul Aziz Al-Hakim, the leading Shia politician who met with President Bush earlier in the week, he's indicated that he really feels that the issues are Iraqi issues, and that spreading the problem out to dealing with bigger Middle East issues won't solve the problem in Iraq. But it does seem the likelihood in the near future of a regional conference here -- Soledad.

S. O'BRIEN: It certainly does. Nic Robertson for us this morning in Baghdad. Thank you, Nic -- Miles.

M. O'BRIEN: A funeral for a spy. Alexander Litvinenko to be laid to rest in London today, comes as Scotland Yard officially calls his death murder.

CNN's Jennifer Eccelston joins us from London with more -- Jennifer.

JENNIFER ECCLESTON, CNN CORRESPONDENT: Yes, that's right, Miles. Last night, late last night, Scotland Yard came out and addressed that the death of Alexander Litvinenko is now being classified as a murder. But they were keen to point out they still don't have, or at least aren't willing to make public, the cause of death, why he was murdered and who did it.

So with that, the investigation continues in Moscow. The British police, who are over there trying to get any leads into the investigation, are still looking to talk to a number of witnesses. We use the word talk very loosely, because in fact, the Russian authorities have made it very clear that the British police will not actually be able to talk to the witnesses themselves. They will be allowed to sit in, and Russian prosecutors will, in fact, lead the questioning there. But they're really keen on talking to a number of people who met with Mr. Litvinenko here in London. First and foremost is a man by the name of Andre Lubevoi (ph), he also a former KGB spy, came to London, we believe on a number of occasions and was in fact one of the men who met with him on November 1st, when he became ill. He has said he is willing to talk to the British. He wants to clear his name, and so we are waiting to hear whether or not the British have been able to talk to him.

And as you mentioned, we are now seeing a little bit of closure on one end of this investigation here today. There will be a funeral for Mr. Litvinenko. His family will be able to put him to rest.

A great deal of secrecy surrounding the funeral arrangements. We do know that it will happen at 2:00 p.m. local time, and we now understand that there will be two ceremony ceremonies, one will be an Islamic ceremony, a Muslim ceremony, and the other one will be a memorial service -- Miles.

M. O'BRIEN: Jennifer Eccelston at Scotland Yard, thank you -- Soledad. S. O'BRIEN: If you are a New Yorker and if you love french fries, and pizza pies and doughnuts, get ready for a change in the recipe. The first city in the nation that has voted to ban transfats in restaurant cooking. New York City's 20,000 plus restaurants and stores must stop cooking with fats like hydrogenated cooking oil, and replace them with healthy substitutes by 2008.

Dr. Thomas Frieden. He is the health commissioner for New York City.

Good morning. Nice to see you. Thanks for talking with us.

DR. THOMAS FRIEDEN, NYC HEALTH COMMISSIONER: Good morning.

S. O'BRIEN: Many people have said over the last days, of all the things that need to be fixed in New York City, and there's a long list, this one is not necessarily -- transfats in food not necessarily at the top of everybody's list. Anybody who is having doughnuts like these, anybody who is having pie, anybody who's eating these kinds of foods, know it's not healthy food. They get it.

FRIEDEN: Well, transfats are different. Transfats are an artificial substance that in recent decades has been used widely in the food supply. They increase the risk of heart attack, stroke and death, and they're not necessary. They can be replaced. They don't have any specific taste. The main reason they're in the food is to increase shelf life, and because when they got into the food supply we didn't know that they were so dangerous. But they increase your bad cholesterol and decrease your good cholesterol, and basically, there's no reason to have them there.

S. O'BRIEN: Twenty-thousand restaurants, more or less, in New York City, some of them mom-and-pop diners, and they've said it could be expensive to make the change. For example, if you're going to buy, you know, swap out, it could be three times more expensive, five gallons of the kind of oil you would need now could run you 70 bucks.

FRIEDEN: Not true. Already about 40 percent of restaurants in New York City don't use artificial transfat, either because they never did or they got rid of it. The costs are equivalent. You can buy more and less expensive oils with transfat and without transfat, but overall the cost is equivalent with transfat or transfat-free.

There is some challenge to change over to new recipes. You may have to do some trial and error, but once that changeover has been made, the cost is equivalent.

S. O'BRIEN: As you well know, there's a TV ad that's out. I want to run a little clip of it so folks can see it.

(BEGIN VIDEO CLIP)

ANNOUNCER: Has the war on obesity gone too far?

UNIDENTIFIED MALE: Next. Nothing for you. Only salad.

(END VIDEO CLIP)

S. O'BRIEN: They're mocking this obviously, and it's a funny ad, but I think the point is serious, which is, isn't this kind of a slippery slope? I mean, why not let consumers decide if this is something that they want in their food or not.

FRIEDEN: Well, for the same reason we don't let consumers decide whether or not they want to consume lead or use lead paint, that we get asbestos out of our environment. The role of the government is to make the environment healthier. This isn't about changing what you choose to make in your kitchen, it's not about changing what you can buy; it's about changing an artificial additive to the food supply that increases people's risk of heart disease, stroke and death.

If you think about it, 100 years ago, when public health began regulating restaurants, things like typhoid were killing people. And what we did was make sure that it wasn't in the food that was served, but today what's killing people is heart disease, cancer, other problems that are affected by what we eat. We want to make sure that any New Yorker can go into any restaurant, get any food item, and it won't have this artificial substance that will make them die earlier.

S. O'BRIEN: Dr. Thomas Frieden is the New York City health commissioner. Nice to talk to you. Thank you very much.

FRIEDEN: Nice talking with you.

S. O'BRIEN: We'll see how people buy it now that it's going to be the rule -- Miles.

M. O'BRIEN: Still to come on the program, Our holiday program travel guide takes a trip with the family. What's the difference between Disney for $10,000 and the Magic Kingdom for under $2,000?

Plus, Space Shuttle Discovery is poised to launch tonight, but it isn't a lock for liftoff just yet. It's never a lock until they actually light the candle. More on that ahead.

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M. O'BRIEN: What a long, strange trip it's been this week. Our itinerant intrepid reporter extraordinaire, Alina Cho, has hit the road, bravely boarding a perpetually late flight, and then suffering through a long massage at the Canyon Ranch, all because she cares about you.

Today, she puts the kids into the picture. You know what that means? A trip to the land of the rodent. It can cost you a pretty penny unless you listen up.

Good morning, Alina, tell us how to save some bucks. ALINA CHO, CNN CORRESPONDENT: That's right, I spent some time at Disney World, as know, Miles. You know, more and more these days families are taking their loved ones on the road instead of going to grandmother's house for the holidays, and in some cases their taking grandma along, too. One popular destination is Disney World, and no matter the budget, there is something for everyone.

(BEGIN VIDEOTAPE)

CHO (voice-over): It's a magical day for the Leland family. Their longtime dream of going to Disney World is finally a reality.

LYNN LELAND, FAMILY VACATIONER: We just figured it was something we'd been planning for, and we knew we were going to do, so we weren't going to skim.

CHO: Lynn and Scott Leland saved up so their children, 7-year- old Erica and 12-year-old Patrick, can really enjoy it. A 10-day vacation, meals, souvenirs, and luxury lodging at the Animal Kingdom Lodge. Total cost for the family of four, including airfare, $10,000.

(on camera): Disney world is much more than Cinderella's castle and its cast of characters, it's four theme parks, two water parks, 22 hotels, and five golf courses, and its vast, 40-square-miles, twice the size of Manhattan. If you have the time and the money, like the Lelands, you can see everything, the safari at animal kingdom, a ride into the future at Epcot, and my personal favorite -- It's a Small World. Just ask Lady Lucinda.

UNIDENTIFIED FEMALE: The children's faces just light up and you see the twinkle in their eyes.

CHO: But what if you're on a budget, with the value package a family of four can stay six day, five nights at Disney's Pop Century resort for less than $1,500, total. That includes hotel and park hopper passes for everyone, but not airfare. Price tag for the same package at a deluxe hotel: $3,500.

Other popular holiday destinations for families this year include ski resorts, Caribbean vacations, and cruises. All inclusive packages are available for each, and travel experts say, like Disney World, you can customize. But the Lelands, all three generations, are happy here, a holiday vacation for kids of all ages.

(END VIDEOTAPE)

CHO: Now the Leland family planned their trip to Disney World more than a year ago. And if you want to take your family there, that's exactly what you need to do, plan ahead. We checked, and for this Christmas, the entire Disney property is sold out, Miles. That is all 22 hotels. It's unbelievable.

M. O'BRIEN: I'm still trying to get over 10,000 bucks. That's a big number. You can go on a fancy trip to Europe.

CHO: That's right. M. O'BRIEN: What about just sending -- you know my idea of this, is to send the kids with the grandparents?

CHO: Well, I know that's exactly what you did.

M. O'BRIEN: Yes, I did. It worked out real well.

CHO: Three generations of this Leland family, this family we profiled, were there, the grandparents, the parents and the kids. It's more popular these days. If you think about it, people are living longer. These grandparents are healthy, they're active, and more and more they're taking their grandkids on vacation for the holidays, leaving the parents at home.

M. O'BRIEN: Mom and dad get a vacation at home. And you got to show us this picture, because you're in there.

CHO: We were there for mostly work, but we did manage to get on a couple of rides. We did get on to the Tower of Terror.

M. O'BRIEN: And there you are, Alina.

CHO: There I am. You know, to my right is Danny Mirra (ph), our photographer. To my left, is Adam Reese (ph), my trusted producer, who I like to say looks like he's about to vomit, and to his left is the Leland family, the family we profiled. We all had a good time on the Tower of Terror.

M. O'BRIEN: I don't think a hair is out of place.

CHO: Will you stop it?

M. O'BRIEN: I got to say, you look really good.

CHO: Soledad!

S. O'BRIEN: Don't look to me for help. I was going to say the exact same thing. The Tower of Terror and Alina's perfection.

CHO: OK, all right, all right. Good work, Alina.

S. O'BRIEN: Ahead this morning, we talk about a serious topic, the Iraq Study Group out with their plan. We're going to talk with a leading Democrat in Congress about what should happen next.

Plus, the hard truth about diamonds. We've got a reality check on that new movie that has diamond dealers on the offense.

Stay with us.

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(NEWSBREAK)

S. O'BRIEN: A follow-up on a story we were watching before Congress took its break for midterm elections. Now with just days left in their session, lawmakers are taking a big step forward in trying to find the baffling cause, or causes, of autism. The House passed a landmark bill that would earmark almost $1 billion over the next five years in federal research, in screening and early intervention for autism. One out of every 166 children born in this country is autistic. It affects more boys than girls. The Senate is expected to approve the bill by the end of the day tomorrow.

Got a look at our top stories straight ahead, including today's big meeting today between President Bush and the British Prime Minister Tony Blair. We're going to take you to the White House for a preview of that meeting.

And we'll have the very latest on that massive power outage in the Midwest. Tens of thousands of people still without power, and of course, the cold weather could make it even worse. A live report straight ahead.

Stay with us.

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