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The Situation Room

President Bush Trying To Show American Public He's Taking Concerns About Iraq And Panel Recommendations Seriously; William Jefferson Trying Campaigning to Win Back Seat On House Ways and Means Committee; Barack Obama In Critical Primary State Of New Hampshire

Aired December 11, 2006 - 16:00   ET

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


WOLF BLITZER, CNN ANCHOR: And to our viewers, you're in THE SITUATION ROOM, where new pictures and information are arriving all the time. Standing by, CNN reporters across the United States and around the world to bring you today's top stories.
Happening now, Iraq strategy sessions. President Bush kicks off urgent consultations with top officials and advisers. New polls are driving home the pressure on the president to quickly chart a new course in Iraq and unveil it to the American people.

Also this hour, new questions and embarrassing answers for the incoming chairman of the House Intelligence Committee.

Does Democratic Congressman Silvestre Reyes have basic knowledge about the world's best known terrorist group?

And New Hampshire goes wild for Senator Barack Obama. The Democrat makes an impressive debut in the leadoff primary state.

Does he need much more encouragement to get into the race for the White House?

I'm Wolf Blitzer.

You're in THE SITUATION ROOM.

Right now, President Bush is trying to show the American public he's taking their concerns about Iraq and a bipartisan panel's recommendations very seriously. He's getting intensive new input from his war team and other advisers, as U.S. troops head into their third Christmas in Iraq.

Let's begin with our White House correspondent, Ed Henry -- Ed.

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Wolf, the president is obviously struggling to find the way forward in Iraq. So he stopped off at the State Department today to show that he's in listening mode right now about new ideas in advance of what is being build privately by some as a major speech about a new direction in Iraq.

Wednesday, of course, he'll be heading to the Pentagon. The point here is that both the State and Defense Departments are conducting separate internal reviews of Iraq policy. They could end up coming up with rival plans to that bipartisan Iraq Study Group report that came out last week.

What was key today is -- listen to the president. He calls Iraq a central component in the war on terror, instead of what he said over and over, calling it a central front in the war on terror.

(BEGIN VIDEO CLIP)

GEORGE BUSH, PRESIDENT OF THE UNITED STATES: And success is a country that governs, defends itself, that is a free society that serves as an ally in this war on terror. And the reason why that's vital is because Iraq is a central component of defeating the extremists who want to establish safe haven in the Middle East.

(END VIDEO CLIP)

HENRY: Now, White House Spokesman Tony Snow quickly insisted that this was not any dramatic change. It was just a slight tweaking of language. But it does raise the question about whether or not the president is preparing some sort of a dramatic new approach or not.

And, in fact, when I pressed Tony Snow on another matter, this dramatic change of heart by Republican Senator Gordon Smith, who is now saying he cannot support the president's policy in Iraq, saying he believes it could, in fact, be criminal putting U.S. soldiers in the middle of a civil war, here's what Tony had to say.

It didn't sound like Tony Snow was ready for a big change.

(BEGIN VIDEO CLIP)

QUESTION: A Republican senator is saying the president's policy may be criminal and it's immoral.

TONY SNOW, WHITE HOUSE PRESS SECRETARY: And what would you...

QUESTION: And you were just saying...

SNOW: ... what would you like me to say?

QUESTION: ... you just said...

(CROSSTALK)

SNOW: Well, should I...

QUESTION: Don't you think you should answer for that?

SNOW: ... do duels at 10 paces?

QUESTION: You're saying -- you said from this podium over and over that the strategy is victory, right?

SNOW: And it continues to be.

QUESTION: We have a Republican senator saying there is no clear strategy, that you don't have a strategy for victory. SNOW: Well, let's let Senator Smith hear what the president has to say. We understand that this is a time where politics are emotional in the wake of an election.

And you know what?

Senator Smith is entitled to his opinion.

(END VIDEO CLIP)

HENRY: So, now critics have been saying that these various internal reviews by the Bush administration are really just an attempt to sort of cherry pick more politically expedient plans for the president, rivals, if you will, to the Iraq Study Group.

Today, Tony Snow insisting the president, in his words, not trying to select from a menu, Column A and Column B. Instead, he's just trying to go through an exhaustive process, make sure he hears all options and then makes a final decision.

By the way, Tony Snow saying the president is not locked in cement in terms of coming up and having this speech before Christmas, as we've heard. Aids here still saying it's likely to be before Christmas, but Snow pointing out he's not locked in cement yet.

So we still have to wait for that -- Wolf.

BLITZER: We still expect a speech from the president some time before Christmas, presumably next week, is that right?

HENRY: That's what one theory, if you will, that's been floating around out there. But Snow is just trying to make it clear that that's not locked in cement yet. The president still wants to hear from the Defense, State Departments, as well as the National Security Council. As you know, they're also conducting a separate review, Wolf.

BLITZER: Ed Henry at the White House, thanks very much.

Earlier I said that U.S. troops were heading into their third Christmas in Iraq. Of course, this is going to be the fourth Christmas in Iraq since 2003 and the U.S. invasion.

Today, Senator Gordon Smith, by the way, is continuing to describe the situation in Iraq in very dire terms.

I spoke with him just a short while ago, only days after he first suggested that America's current course in Iraq might be criminal.

(BEGIN VIDEOTAPE)

BLITZER: So you've concluded this is now a civil war in Iraq?

SEN. GORDON SMITH (R), OREGON: I have concluded that. You know, this is a fight, when you get right down to the root of it, between Sunnis and Shias -- it goes back a millennia of time -- over who is the rightful successor to the Prophet Muhammad.

That is not our fault, that is not our fight and that's not something we can fix.

(END VIDEOTAPE)

BLITZER: And you can hear the entire interview with Senator Smith, his emotional about face on Iraq.

That's coming up right here in THE NEWSROOM in the next hour.

You're going to want to see this.

In Iraq, meanwhile, security officials say at least 78 more people were killed in a new blast of sectarian violence over the weekend. And it's continuing right now.

Rival Sunni versus Shiite militias clashed. Homes were stormed. Families were forced to flee for their lives. Nearly two million Iraqis, over these past three-and-a-half years, have been displaced as a result of this war.

Let's get a new snapshot now of the public's view of the war, the president and the Iraq Study Group's report.

For that, we'll talk to our senior political analyst, Bill Schneider -- Bill.

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Wolf, the Iraq Study Group report is being attacked right and left.

How does the public feel?

(BEGIN VIDEOTAPE)

SCHNEIDER (voice-over): President Bush stated his administration's goal in Iraq a year ago.

BUSH: We will never accept anything less than complete victory.

SCHNEIDER: Republicans tried to use the issue in the mid-term campaign.

BUSH: When you pullout before the job is done, that's cut and run, as far as I'm concerned.

SCHNEIDER: Too late. About then, only a third of Americans believed the United States was winning, according to the CNN poll by the Opinion Research Corporation. Forty percent believe the U.S. will win. Only a small majority thought the U.S. can win.

Meanwhile, the Democrats won the mid-term. Now we have the Iraq Study Group reporting the situation is "grave and deteriorating. There is no path that can guarantee success, but the prospects can be improved."

The report never mentions U.S. victory in Iraq. "Defeatism!" conservatives say.

"Surrender Monkeys" screams a headline in the "New York Post."

SEN. JOHN MCCAIN (R), ARIZONA: I believe that this is a recipe that will lead to, sooner or later, our defeat in Iraq.

SCHNEIDER: Critics on the left argue the U.S. has already lost. There are no prospects to be improved. The Study Group recommends that the U.S. limit its military commitment.

President Bush's initial response?

Nuts.

BUSH: The future of a vital region of the world and the security of the American people depend on victory in Iraq.

SCHNEIDER: The American public's initial response?

According to a "Newsweek" poll, while a lot of people don't know much about the report, those who do say it sounds pretty good. The public wants to start withdrawing troops. About half want out of Iraq within the year. Two thirds want out within two years. Only 23 percent agree with President Bush that the U.S. should stay as long as it takes to achieve our goals.

(END VIDEOTAPE)

SCHNEIDER: In the "Newsweek" poll, two thirds say the United States is losing ground in its efforts to establish security and democracy in Iraq. And by nearly two to one, the public is ready to set a timetable for withdrawal -- Wolf.

BLITZER: All right, Bill, thanks very much.

Bill Schneider reporting.

We're going to have a lot more coming up on Iraq, the strategy, the deliberations unfolding here in Washington.

That's coming up.

But I want to switch gears right now because right now the Space Shuttle Discovery literally goes belly up.

Let's turn to CNN's space correspondent, Miles O'Brien.

He's joining us with more on -- these are dramatic pictures.

Explain, Miles, as only you can, what our viewers are seeing.

MILES O'BRIEN, CNN ANCHOR: Wolf, it is spectacular. We shouldn't take it for granted what we're seeing there right in that box.

This is a shot of the Space Shuttle Discovery in the midst of this back flip maneuver, which is an important maneuver in the post- Columbia world.

What they're doing right now, they're about 600 feet away from the International Space Station. That's where this camera is that is getting these pictures right now. And the crew members on board the space station right now just got the command from the ground to start taking pictures like tourists at Disneyworld.

Mikhail Turin and Mike Lopez-Alegria with a 400 millimeter lens and an 800 millimeter lens, are taking pictures all across this heat shield, looking for any possible dings or damage which might have occurred during launch or perhaps might have been the result of a micro meteorite that hit that space station on its way to this docking moment with the International Space Station.

Clearly, that's a big concern post-Columbia, because, as we all know, back in February 2003, not long after launch, a two-and-a-half pound piece of foam struck the heat shield, caused that breach, which they didn't know about. And, of course, that meant (ph) for the loss of the crew and the vehicle.

So, this is part of the overall inspection that NASA instituted post-Columbia to ensure that when they come home, they have a nice, intact heat shield. And as you see, you can come around and you can take a look at the space shuttle's main engines -- one, two and three right there. And this whole process takes about nine minutes. It's kind of a slow process. They have to take those pictures fairly quickly.

Traveling now, Wolf, 17,200 miles an hour, about 220 miles above the South Pacific. Of course, the relative motion between the two vehicles isn't much, but this is a spectacular image, indeed.

After they're done with this rotational pitch maneuver, or the back flip, if you will, they're going to move around and begin the process of lining up for a docking with the space station. That docking will occur in a little less than an hour. And then they're off to the races with a busy mission, Wolf, to rewire the space station. They're going from temporary power to a more permanent power setup.

So these -- this crew of the Space Shuttle Discovery is like a crew of high flying electricians, I guess you could say -- Wolf.

BLITZER: All right, Miles, thanks.

Miles is going to be back with us in the next hour, as we continue to watch this dramatic, really important maneuver that's going on, because as you point out, it literally could be a life and death issue for these astronauts who are in space right now.

Miles, stand by.

And we just want to remember -- remind our viewers, you can always see Miles O'Brien and Soledad O'Brien on "AMERICAN MORNING" every weekday, 6:00 a.m. for three hours. You've got to wake up in the morning and watch Miles and Soledad. I do every single morning. Let's go to Jack Cafferty.

He's standing by in New York.

Another good week -- Jack, hi.

JACK CAFFERTY, CNN ANCHOR: How are you doing, Wolf?

On her way out the door last week, Congresswoman Cynthia McKinney introduced a bill to impeach President Bush. It's strictly symbolic. It has no chance of going anywhere. She lost her Congressional seat and is on her way back to civilian life.

But McKinney isn't the only person who thinks President Bush may have done things that rise to the level of high crimes and misdemeanors. And yet the incoming House speaker, Nancy Pelosi, has said that impeachment of the president is "off the table."

It's all kind of strange.

The incoming House Judiciary Chairman, John Conyers, had earlier sponsored a bill to investigate grounds for possible impeachment. Now Conyers has backed off and agreed with Pelosi to rule out impeachment.

Jesse Jackson wrote last week that even if Conyers won't consider impeachment of President Bush, he "has a duty to convene serious hearings" on the president's claims of what Jackson calls abuses to our constitution.

A poll that was taken right before the mid-term elections showed 28 percent of Americans say impeachment of President Bush should be a top priority. Twenty-three percent say it should be a lower priority and 44 percent say it shouldn't happen at all.

So here's the question this hour -- is it wrong for the incoming Congress to simply rule out the impeachment of President Bush?

E-mail your thoughts on that to CaffertyFile@CNN.com or go to CNN.com/CaffertyFile -- Wolf.

BLITZER: Jack, thank you.

Jack will be back later this hour.

Coming up, Barack Obama raising expectations and crowds with a tour of New Hampshire.

But will the junior senator from Illinois jump into the race for the White House?

Coming up next, we're live from the campaign trail in New Hampshire. Our John King is on the scene.

Plus, he was caught with $90,000 of cold, hard cash -- very cold, in fact -- in his freezer. But voters are, in fact, sending Congressman William Jefferson back to Capitol Hill. Will he be an embarrassment to fellow Democrats?

And more fallout from the Foley report.

Will the scandal impact Democrats -- yes, Democrats -- as well as Republicans?

Stick around.

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Democratic Congressman William Jefferson is savoring his landslide reelection in a runoff in Louisiana over the weekend. But the incoming House speaker, Nancy Pelosi, may not be celebrating.

Jefferson is still facing a bribery investigation and his victory creates a new ethics dilemma for Democrats as they prepare to take control of the Congress.

Let's turn to our Congressional correspondent, Andrea Koppel, for more -- Andrea.

ANDREA KOPPEL, CNN CONGRESSIONAL CORRESPONDENT: Wolf, it has been six months since Pelosi forced Jefferson, one of the senior members of one of the most powerful House committees, to relinquish his seat.

Now, CNN has learned he plans to lobby to get it back.

(BEGIN VIDEOTAPE)

REP. WILLIAM JEFFERSON (D), LOUISIANA: God bless you all.

KOPPEL (voice-over): Congressman William Jefferson had hardly finished celebrating his reelection Saturday when he began lining up support for another campaign -- winning back his seat on the powerful House Ways and Means Committee.

CNN has learned that Jefferson told Congressman Mel Watt, the outgoing chairman of the Congressional Black Caucus, he wants to be reinstated. That could put the eight term Louisiana Democrat on a collision course with Speaker-Elect Nancy Pelosi, who forced him off the tax writing committee in June.

REP. NANCY PELOSI (D-CA), HOUSE SPEAKER ELECT: It's very sad, but we are a Democratic -- our House Democratic Caucus is determined to uphold a high ethical standard. We've said it and now we are doing it.

KOPPEL: Pelosi's concern back then, that government allegations Jefferson may have accepted bribes, including $90,000 from an FBI informant found in his freezer, would hurt Democrats at the polls in November. Pelosi promised voters Democrats would get rid of what she called a Republican culture of corruption. And several Democratic aides told CNN, despite Jefferson's weekend win, it's "very unlikely he'll get his Ways and Means seat back."

Jefferson's office did not return our calls.

Jefferson maintains he's innocent and he's not been indicted or charged with any crime and an FBI investigation continues.

In June, he accused Pelosi of putting politics over his hard work, especially in the wake of Hurricane Katrina.

JEFFERSON: It is more of a scapegoat, I think, for the -- for the convenience of an argument that Mrs. Pelosi wants to make to gain the advantage in a political debate.

KOPPEL: Pelosi's decision to remove Jefferson from the committee prompted a sharp rebuke from the Congressional Black Caucus in June, which both sides tried to smooth over last week.

PELOSI: We're a family and like every family, from time to time, we have our disagreements.

(END VIDEOTAPE)

KOPPEL: And following Jefferson's victory Saturday, the Black Caucus again sprang to his side, trumpeting his victory, declaring that the voters have spoken "resoundingly" and called on all members of Congress to rally behind Jefferson -- Wolf.

BLITZER: Andrea Koppel reporting for us.

We'll watch this -- the fallout from this closely.

Nearly five weeks after election day, officials in central Ohio say a recount confirms that Republican Deborah Pryce has won reelection. Pryce is the fourth ranking Republican in the House. She says she's grateful to hold onto her seat and she understands voters wanted to send a message.

Unofficial recount numbers now show Pryce beat Democrat Mary Jo Kilroy by 1,062 votes. Kilroy now has conceded, saying she's proud of her campaign and the issues it raised.

Another House race in Ohio also over. Republican Jean Schmidt is holding onto her seat in the 2nd District after a recount. Democrat Victoria Wilson has conceded.

As it stands right now, the Democrats will hold at least 232 seats in the House and Republicans will hold at least 201 seats. Two House races still, still undecided.

New rankings and maneuvering in the 2008 race for the White House. Our brand new CNN poll shows former New York Mayor Rudy Giuliani and Senator John McCain remain the early GOP favorites, each getting about one fourth of support among registered Republicans.

The former House speaker, Newt Gingrich, is the only other Republican presidential prospect to score in double digits, with 13 percent.

Senator Hillary Rodham Clinton is far and away the favorite of registered Democrats, with 37 percent support. A relative newcomer to the field of presidential prospects, Senator Barack Obama is second, with 15 percent. Two thousand Democratic presidential nominee Al Gore a close third, with 14 percent, even though he says he has no intention of running.

If you needed any more evidence that Barack Obama is a serious player in the 2008 pre-game show, you only had to watch him in action in New Hampshire. The senator just made his political debut in that critical primary season state.

Let's turn to our chief national correspondent, John King.

He's joining us from Manchester -- John, how did it go for the junior senator?

JOHN KING, CHIEF NATIONAL CORRESPONDENT: Well, Wolf, when you have 150 journalists from as far away as Australia tracking your every move, it's hard to engage in that one-on-one, hand-to-hand, face-to- face campaigning for which New Hampshire is famous.

But after about 30 minutes in a coffee shop here yesterday, Barack Obama left beaming. He said he loved it and Democratic activities are betting he'll soon be back.

(BEGIN VIDEOTAPE)

KING (voice-over): First impressions matter in politics.

SEN. BARACK OBAMA (D), ILLINOIS: Oh, I'm fired up.

KING: Timing, too.

OBAMA: I am telling you, New Hampshire, America is ready to turn the page. America is ready for a new set of challenges. This is our time, a new generation.

KING: Only 45 years old.

OBAMA: Obviously, it's flattering to get a lot of attention.

KING: Elected to the Senate just two years ago. Yet Barack Obama has to wonder if this just might be his moment.

BETSY DEVRIES (D), NEW HAMPSHIRE STATE SENATOR-ELECT: I don't think I've ever seen anything quite like with Obama, the rock star event. KING: He is, for the most part, a few steps left of center. He talks about universal health care and raising the minimum wage. But he also laments recommended federal deficits. And even as he says it's time to start bringing them home from Iraq, Obama warns Democrats can't appear soft on security.

OBAMA: What we've seen is a lot of tough talk and poor decision- making on the part of the White House. But people do want tough.

KING: His appeal, though, is rooted more in a soft-spoken optimism, at least for now, more style than substance.

OBAMA: And it's a spirit that says we are looking for something different.

KING: His star power is undeniable -- 1,500 people at a sold out $25 a ticket state Democratic fundraiser on a Sunday afternoon. Hundreds more...

OBAMA: And yes, you go right ahead.

KING: ... at a morning book signing that had to be moved to a big convention hall.

UNIDENTIFIED MALE: Barack Obama buttons.

KING: They call it The Obama Effect.

UNIDENTIFIED MALE: Let them know that '06 wasn't a fluke.

KING: And it's already spurred Senator Hillary Clinton to accelerate her campaign planning, including calls to New Hampshire Democrats just this past week.

And an Obama candidacy might also shake up the Republican race.

UNIDENTIFIED MALE: Thank you very much, sir.

KING: Independents are allowed to vote in New Hampshire presidential primaries and were a major force back in 2000, when Senator John McCain stunned George W. Bush here.

TOM RATH, REPUBLICAN STRATEGIST: And, in fact, the Independent voters really propelled him to victory in the Republican primary.

KING: Veteran Republican activity Tom Rath is backing Massachusetts Governor Mitt Romney and thinks Obama could prove at least a temporary ally.

RATH: I think right now the more Independents who vote in the Democratic primary, the more the Republican base controls the Republican primary, and that's a good thing.

KING: That assumes he runs, a decision Obama promises in the next few weeks.

OBAMA: I am suspicious of hype. I'm still running things through the traps.

KING: And making a good impression in the meantime.

OBAMA: Sorry, guys. I didn't mean to cause this fuss.

KING: Oh, yes, he did.

(END VIDEOTAPE)

KING: Now, Obama is clearly enjoying the flirtation phase. He had a good deal of fun-here in New Hampshire. And, Wolf, tune in pre- game tonight for "Monday Night Football" and you'll see a special message from the junior senator from Illinois saying after much soul- searching, he wants to announce to the nation and his home town of Chicago, he's ready. I suspect he's going to say ready for some football, but you might want to tune in -- Wolf.

BLITZER: Very, very cute. Very clever.

Now, a lot of our viewers are probably asking, you know, John, it's only December 2006. We've just had an election.

What's all this fuss about 2008 already?

Explain why this calendar is forcing, to a certain degree, these candidates to get into the ball game right now.

KING: Part of it is because the races get more and more expensive. You have to raise more and more money so they start earlier and earlier.

But there's a new wrinkle this year, and that is because the Democratic Party opened its rules up and other states, including Nevada, for example, are moving up, encroaching on what Iowa and New Hampshire view as scared ground -- their first in the nation caucus and the first in the nation primary.

So both Iowa and New Hampshire still haven't set firm dates and they're saying that if Nevada moves up to a certain date, they may move even further.

There's some talk in Iowa that the caucuses would be held not in 2008, but actually in the second week of December, 2007, one year from now. And if that happens -- still an if -- but if that happens, say, the Iowa caucuses are around next December 15th. Then New Hampshire might move its primary up to next January 8th.

So we're about 400 days, maybe even a little fewer days than that away, Wolf, from the first contest of the 2008 campaign.

BLITZER: And there are already...

KING: It's closer than you think.

BLITZER: There are already some presidential debates, candidate debates getting lined up for the spring and summer of next year. KING: Absolutely right. May in South Carolina is one plan. They're trying to get early ones here, as well.

BLITZER: All right, John, thanks very much.

KING: Thanks to you.

BLITZER: John King on the scene for us in New Hampshire.

He's going to be spending a lot of time there in Iowa and Nevada, all over the country.

John King, Andrea Koppel, Bill Schneider, Ed Henry -- they are all part of the best political team on television. And we're going to have a lot more on this race for the White House coming up later in today's Political Radar.

Remember, for all the latest political news at any time, check out our Political Ticker. Just go to CNN.com/ticker.

Coming up, does the incoming chairman of the House Intelligence Committee get a failing grade when it comes to basic facts about al Qaeda and the war on terror?

Find out next.

Plus, much more on Barack Obama. Are expectations so high that the junior senator from Illinois has no choice but to run-for the White House?

I'll ask James Carville and Terry Jeffrey. They're standing by live for today's Strategy Session.

We'll be right back.

(COMMERCIAL BREAK)

BLITZER: And, to our viewers, you're in THE SITUATION ROOM, where new pictures and information are arriving all the time.

Happening now: President Bush opens a series of strategy sessions on Iraq, as he prepares to unveil a retooled war battle plan, presumably before Christmas. Mr. Bush met today with State Department officials.

Meantime, the White House is downplaying a Republican senator's strong new condemnation of the war -- my interview with Senator Gordon Smith of Oregon coming up here in THE SITUATION ROOM. You're going to want to see this.

A new development today in the CIA leak case. A federal judge has all but resolved a lengthy legal fight over classified information. That likely removes a potential roadblock to the perjury and obstruction trial of former White House aide Lewis Scooter Libby.

And Chicago Mayor Richard M. Daley is going for the record books. Today, the Democrat announced he is running for a sixth term. A win could put him in office even longer than his legendary father, Richard J. Daley.

I'm Wolf Blitzer. You're in THE SITUATION ROOM.

On Capitol Hill, the incoming chairman of the House Intelligence Committee is facing tough new questions today about his knowledge of the issues his panel will face, specifically, some basic facts about the war on terror. It all stems from a interview with Silvestre Reyes.

Our Brian Todd has much more on this story and the fallout -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, the reporter who interviewed Congressman Silvestre Reyes is quick to point out, Reyes is a thoughtful man who has a good grasp of the big picture in the war on terror.

But, at one point in their interview, the soon-to-be intelligence chairman was clearly thrown off.

(BEGIN VIDEOTAPE)

TODD (voice-over): He will soon head the House committee that oversees U.S. intelligence agencies and authorizes their money. When he got the job as chairman, Congressman Silvestre Reyes was confident.

REP. SILVESTRE REYES (D), TEXAS: Having been a consumer of intelligence in the real -- in the real world since, with my career in the Border Patrol, I felt that I had very strong credentials, and credentials that I could stand -- that could stand up to -- to anybody.

TODD: But Reyes' basic knowledge of who is waging this war is now in question.

Speaking recently with "The Congressional Quarterly," Reyes is asked, "Is al Qaeda Sunni or Shia?"

Quote: "Predominantly, probably Shiite."

Analyst Derek Chollet says, Reyes is a smart guy who probably just got tripped up. But shouldn't the man who, in nearly six years on the Intelligence Committee, has already gotten several classified briefings, know that the world's best known terrorist group is mostly Sunni?

DEREK CHOLLET, FELLOW, CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES: We should expect all of our public officials, particularly those in positions that are responsible for overseeing and conducting the war on terror, to know as much as they possibly can about the threat that we face.

TODD: Reyes also couldn't identify Hezbollah, long considered a terrorist organization by the State Department. The reporter, Jeff Stein, was accused of cheap shots when a previous article by him pointed out that top FBI counterterror officials didn't know the difference between a Sunni and Shiite.

Was he ambushing them or Reyes?

JEFF STEIN, "THE CONGRESSIONAL QUARTERLY": No. I don't sneak up on them at all. I'm not there to ask them this question. I go to ask them what their policies are, what -- what they think about certain intelligence issues, counterterrorism issues.

TODD: Silvestre Reyes was speaker-elect Nancy Pelosi's safe choice when she had a falling out with longtime ranking member Jane Harman.

An aide to Pelosi tells CNN, she does not regret choosing Reyes, and still has full confidence in him.

(END VIDEOTAPE)

TODD: After several calls and e-mails today, Reyes' office issued us this statement -- quote -- "The 'C.Q.' interview covered a wide range of topics, other than the selected points published in the story. As a member of the Intelligence Committee since before 9/11, I am acutely ware of al Qaeda's desire to harm Americans. The intelligence Committee will keep its eye on the ball and focus on the pressing security and intelligence issues facing us."

It should be pointed out, when he got this job, National Intelligence Director John Negroponte and CIA Chief Michael Hayden praised Silvestre Reyes for his grasp of intelligence issues -- Wolf.

BLITZER: All right, Brian, thanks very much.

We are going to have more on this story coming up, in fact, in our "Strategy Session." Two headaches for the speaker to be Nancy Pelosi -- her handpicked head of the Intelligence Committee. And how much on the job training does the incoming Democratic chairman need?

And Congressman William Jefferson of Louisiana, he is back. After authorities find cold hard cash in his freezer, the congressman wants his old job back on the powerful House tax-writing committee -- James Carville, Terry Jeffrey standing by for our "Strategy Session." That's coming up next.

(COMMERCIAL BREAK)

BLITZER: We reported about them earlier this hour, a popular young Turk considering a run for the White House and two Democratic congressmen who are raising some eyebrows.

Joining us now for our "Strategy Session," Democratic strategist James Carville and Terry Jeffrey, the editor of "Human Events."

Thanks, guys, very much for coming in.

Let's talk about Barack Obama. I know you love Hillary Rodham Clinton. You're very close to the Clintons, no doubt about that.

(CROSSTALK)

BLITZER: But has Barack Obama, based on the body language, what he is saying, crossed the line of no return? In other words, is he going to run?

JAMES CARVILLE, CNN POLITICAL ANALYST: I think it's likely that he will. And to his credit and the people around him's credit, they are not being particularly coy about it.

I mean, I heard somebody say 80 percent. That sounds like a good number. I mean, you're not in until you're in, but he is showing every -- every evidence that he is giving it really serious consideration. And his -- the people around him are showing every evidence that he is leaning toward making this race. And I suspect that he will.

TERRY JEFFREY, EDITOR, "HUMAN EVENTS": I think Barack Obama would be a formidable candidate. I think he's sort of a James Carville kind of guy.

He's got 100 percent ratings from all the left-wing groups. But he has got this way of centrist rhetoric and talking up conservative values, when he votes liberal values in Congress and formerly in the state legislature.

He also can get around to the left of Hillary Clinton on the war. Senator Clinton voted for the war. He was on the record against the war before the U.S. went into Iraq. I think that will appeal to Democratic base...

(CROSSTALK)

BLITZER: But it's too early, I suspect, to just think, for the Democratic nomination, this is a race between Hillary Clinton and Barack Obama.

(CROSSTALK)

CARVILLE: But me tell you, Al Gore may get in. You got -- I know Senator Bayh, Senator Biden, with John Edwards, our former vice presidential nominee, Senator Chris Dodd. Governor Richardson is probably going to get in.

Look, this is as talented and big field as any political party has ever put up, the most talented and biggest field any political party has ever put up for president of the United States. And I think he's going to run.

(CROSSTALK)

BLITZER: The two GOP front-runners, Rudy Giuliani and John McCain, according to our new poll, and all the other polls as well.

JEFFREY: Right, although I predict that, when Giuliani's record is more well known on the grassroots among Republican voters, that he is not going to go anywhere, Wolf. He is just too far left on the social and cultural issues.

I think you will see Romney and some of the other candidates move up over time closer to McCain.

BLITZER: Let's move over to this chairman -- incoming chairman of the House Intelligence Committee, Silvestre Reyes.

What do you make of this? He didn't know what Hezbollah was.

CARVILLE: Right. Right.

BLITZER: And he didn't know that al Qaeda was largely Sunni, as opposed to Shiite.

CARVILLE: Right.

BLITZER: That's pretty embarrassing.

CARVILLE: It is. And we had a question when candidate George W. Bush in 2000 didn't know who the president of Pakistan or North Korea or India was.

And, of course, six weeks before the invasion of Iraq, he didn't know that there were Sunni and Shia and Kurds. And, so, it is serious. I think most people say that Congressman Reyes is knowledgeable about these issues. But, clearly, he has got to get more up to speed.

All I -- when I saw that, I could say, the one thing to be grateful for, if you're Congressman Reyes is, it wasn't on videotape.

BLITZER: It was a print...

(CROSSTALK)

CARVILLE: The reporter -- it was a print interview. And that gives it a shelf life of -- if it was a videotape, it would have lasted seven days longer.

(CROSSTALK)

JEFFREY: This is scandalous. This guy has been on the Intelligence Committee since 2001, before the 9/11 attacks.

We learned after the Iraq war that -- how bad our intelligence was. Theoretically, this committee is doing overaggressive oversight of the CIA and other intelligence agencies to find out what went wrong. We found out -- we find out now one of its key members doesn't even know that al Qaeda is a Sunni institution, at a time when we have what some people argue is a civil war between Sunni and Shiites in Iraq that was precipitated, in large part, by Zarqawi, the leader of al Qaeda in Iraq.

CARVILLE: Look, I think it's unfortunate. I think he needs to bone up. Sometimes, we...

(CROSSTALK)

JEFFREY: Should he serve as chairman, James?

CARVILLE: Of course he should serve as chairman.

JEFFREY: He should? You think this guy -- you're confident this guy could do the job we need to oversee our intelligence agencies in a time of war?

(CROSSTALK)

CARVILLE: I think that he needs to bone up.

I know, in many instances, sometimes, somebody gets a question. You know the answer to it. You freeze up. You give the wrong thing.

You have Michael Hayden, you have John Negroponte, you have people saying that he is knowledgeable about this. He's a veteran. He's a former Border Patrol agent. He missed a question. We shouldn't try to make any more of it than that.

BLITZER: All right.

CARVILLE: It is embarrassing, I agree.

BLITZER: There is another embarrassment for Nancy Pelosi and the Democrats, William Jefferson, your home state of Louisiana...

(CROSSTALK)

BLITZER: ... reelected, and with big numbers.

CARVILLE: Right. Well, it was a bittersweet day for my state.

Senator Mary Landrieu probably assured for reelection. We got this -- probably the most tremendous legislative accomplishment in the history of the state. I don't think that William Jefferson is going to return to the Ways and Means Committee.

I think the Democrats have acted decisively there. If he gets a letter from the United States attorney saying that he is cleared, then I would -- then, you would have to say he will go back on there. But I think that he is going to probably, in all likelihood, stay off of that committee.

You know, I guess, in America, the best I can say is, is that you're innocent until proven guilty.

BLITZER: He hasn't been charged with any criminal wrongdoing. He is being investigated.

JEFFREY: Well, I think there's two questions, Wolf, is, what are the Democrats and Nancy Pelosi going to do? What is the Bush Justice Department going to do? Earlier this year, we had the FBI publicly release an affidavit that you claimed, as you reported earlier on this program, that $90,000 that had been given to him in an FBI operation ended up in his freezer. Now, it seems to me you have got to indict the guy if you think he's guilty of a crime. And it has got to be done in a timely manner.

On the other hand, under the Constitution, the House has the right to expel its own members with a two-thirds vote. If Nancy Pelosi thinks this guy shouldn't serve on the Ways and Means Committee, because she doesn't like this behavior, what is he going to -- is she going to seat him in the Congress?

(CROSSTALK)

CARVILLE: This is borderline getting here.

The Democrats acted decisively and immediately. They took him off the Ways and Means Committee. He has not been convicted. The people of his district reelected him. And, you know, we believe in election returns. And it may be, after you go through the 2000 presidential race, may discount those.

I don't think -- I think it's ludicrous to assume, until the man is indicted or either convicted, that you say he can't serve in the Congress.

(CROSSTALK)

CARVILLE: They stripped him of a big committee. And you know what? And it does matter that the people of -- it may not impress you, but it does matter that people reelected him.

BLITZER: Hold on a second. So, should she let him serve on the House Ways and Means...

CARVILLE: No.

BLITZER: And...

(CROSSTALK)

CARVILLE: And she will not.

BLITZER: And this is important to our viewers who may not know. The Ways and Means Committee writes all the tax legislation that determines how much tax you and I are going to be paying.

(CROSSTALK)

CARVILLE: And he was -- and when this happened, the House Democratic leadership kicked him off the Ways and Means Committee. They're not going to let him back on there.

And they acted decisively. And Speaker Pelosi does it -- deserves, and the House Democrats deserve, an enormous amount of credit for that.

And the Jerry Lewis, the president other Appropriations Committee...

BLITZER: All right. Hold on.

CARVILLE: ... spent $830,000 on legal fees.

BLITZER: Ten seconds, because we're out of time.

JEFFREY: Let me just ask you a question in principle. If a Democratic member of Congress is in fact convicted of a felony, should they be expelled, even if they're re...

CARVILLE: Of course.

JEFFREY: OK.

CARVILLE: Of course.

(CROSSTALK)

CARVILLE: Absolutely. He's not been convicted, though. There's a difference.

(CROSSTALK)

BLITZER: That's exactly 10 seconds, guys.

JEFFREY: Well done, James.

CARVILLE: Of course.

(CROSSTALK)

JEFFREY: The right principle.

BLITZER: Thanks very much, James and Terry. Appreciate it.

Coming up: Last week, he announced he wants to run for president, so what is Sam Brownback doing -- get this -- in jail? We are going to take a closer look at what is going on.

Also: She is making her list, checking it twice, but will Senator Clinton officially kick off her presidential push, and when? That is coming up in our "Political Radar."

Much more of our show coming up -- stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Possible presidential contenders are on our "Political Radar" this Monday.

Ohio Congressman Dennis Kucinich will announce tomorrow he is running for the Democratic presidential nomination again. A press release from his office says Kucinich will throw his hat into the ring because of his deep concerns about the willingness of his own party's leadership to continue funding the war in Iraq.

Congressman Kucinich will be our guest tomorrow right here in THE SITUATION ROOM.

Senator Hillary Rodham Clinton says she won't make a decision about running for president until after the 1st of the year. She disclosed her timetable during a visit to Upstate New York earlier today. Senator Clinton says she hasn't decided whether to form a presidential exploratory committee, hasn't decided yet. But she says she might be required by law to do so if she continues to weigh a run for the White House.

Republican and outgoing Massachusetts Governor Mitt Romney is signing on top aides for his possible presidential bid. GOP sources say Bush communications veteran Matt Rhoades and GOP congressional leadership spokesman Kevin Madden will join the Romney camp.

And another presidential prospect is out of prison today. Yes, you heard it right. Republican Senator Sam Brownback of Kansas actually spent a restless night in the Louisiana state penitentiary over the weekend. His visit was aimed at promoting religious-based prison programs designed to try to rehabilitate inmates. Senator Brownback will be our guest as well tomorrow, right here in THE SITUATION ROOM.

And, remember, for all the latest political news at any time, check out our Political Ticker at CNN.com/ticker.

Up next: It could be the conservative answer to MoveOn.org. Former House Majority Leader Tom DeLay builds a blog aimed at putting the GOP back on top.

And later: Is there an effort to push Iraqi prime minister, Nouri al-Maliki, out of power? We will hear from our senior international correspondent, Nic Robertson. That's coming up in our next hour.

Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: The former House majority leader, Tom DeLay, who continues to deny the money-laundering charges against him, is launching a new Web site aimed at grassroots activists on the right. Can the indicted Tom DeLay turn his site into a MoveOn.org for conservatives?

Let's turn to our Internet reporter, Jacki Schechner -- Jacki.

JACKI SCHECHNER, CNN INTERNET REPORTER: Well, TomDelay.com used to be a congressional campaign site. Now it has been re-launched as a blog. DeLay posts online, he is doing this to get more directly involved in the blogosphere. He is also urging activism, what he calls the Grassroots Action and Information Network, or GAIN.

Now, you can read the blog for free, but GAIN is unlike any other online communities we usually see, in that you have to download and fill out an application, and there is a $52 fee. It's a little unclear what that money goes toward. A spokeswoman said you just get access to special information, but she wouldn't elaborate.

Now, DeLay first posted in the blogosphere online at redstate.com back on November 16. And Mike Krempasky, who runs the conservative community blog, says that DeLay managed to win people over by engaging them and responding to critic.

Robert Bluey, who blogs at Human Events Online, says that he applauds DeLay for venturing into what could be treacherous waters. Now, DeLay has already gotten a little bit of a taste of that. The test site went up last night, and it was flooded with more than 100 angry and obscene comments. A transcript of those comments has been circulating online today. And now comments need to be edited before they are published -- Wolf.

BLITZER: Jacki, thank you for that.

Coming up next, Jack Cafferty, he will join us with his question of the hour: Is it wrong for the incoming Congress to simply rule out the impeachment of President Bush? Jack and your e-mail -- coming up next.

And, in our next hour: Discovery arrives at the International Space Station -- docking only minutes away. You're going to see it live right here. That's coming up.

Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Let's turn to Jack Cafferty once again for "The Cafferty File" -- Jack.

CAFFERTY: Wolf, the question this hour is: Is it wrong for the incoming Congress to simply rule out the impeachment of President Bush?

Allan writes from Oregon: "It's a pretty savvy strategy, actually, especially when you figure impeachment is too soft a landing for this president. War crimes against humanity is the charge Mr. Bush, Cheney, Wolfowitz, et al, should be facing, and ultimately punished for. These are the real terrorists."

Willis in Georgia writes: "It's not wrong for the Congress to hold impeachment hearings on the president. One of the Republican congressmen has said that what has happened in Iraq may very well be criminal. The criminal in chief should be held accountable for the disaster in Iraq, which is his making." Jon in Philadelphia: "I don't think we should impeach for stupidity and tunnel-vision, any more than I thought we should have impeached for lying about sex. Let's get some of the people's work done, instead of political vendettas."

Mary in New York: "A bill to impeach Bush would never pass the current Congress. The better path is for the new Congress to hold hearings on the Iraq war, domestic spying, 9/11, habeas corpus, intelligence. Subpoena Bush, Cheney, Wolfowitz, Rumsfeld, Powell, et cetera. Make them testify under oath on TV. That ought to take about two years. In January of 2009, when they all become private citizens, indict them on criminal charges."

B. writes: "No question about it. Compare Clinton's misdeeds with this man -- no comparison. The damage this president has caused to this nation is incalculable. We will be suffering his legacy for many, many years."

And, finally, Ron, in Kansas City: "Not only is it wrong. I think it's political suicide. First, we have Democrats that gave Bush a blank check for the war. And now, when it's time to balance the books, they want to distance themselves from the scrutiny that would come from an impeachment. It's shameful" -- Wolf.

BLITZER: Jack, thank you.

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