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Bush Makes Personnel Changes in Preparation for Implementing New Iraqi Strategy; Bush Nominates Negroponte to Deputy Secretary of State

Aired January 05, 2007 - 09:30   ET

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

TONY HARRIS, CNN ANCHOR: And good morning, everyone.
You are in the CNN NEWSROOM.

I'm Tony Harris.

HEIDI COLLINS, CNN ANCHOR: And I'm Heidi Collins.

For the next three hours, watch events happen live on this Friday, the 5th day of January.

Here's what's on the rundown.

President Bush updating top lawmakers on Iraq strategy. Part of the new plan -- a shakeup in the military ranks. He announces other staff changes this hour.

HARRIS: Tornadoes striking the South. More storms could hit the Gulf region today. We check in with meteorologist Chad Myers.

COLLINS: Adrift for days on the open ocean -- an American sailor found off South America. Rescue, in THE NEWSROOM.

HARRIS: At the top this morning, deliberations, consultations -- President Bush putting the final touches on his new strategy for Iraq. And it could mean sending more U.S. troops to war. The president unveils his plan next week. Today, he discusses it with key lawmakers.

Live to the White House and correspondent Suzanne Malveaux -- and, Suzanne, good morning to you.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Tony.

HARRIS: We are hearing about some shake-ups at the White House.

What are we expecting to hear from the president in about 50 minutes from now?

MALVEAUX: Well, Tony, you're absolutely right here. The president's priority, at this point, is to put a new team in place before he unveils his -- what he calls a new strategy regarding Iraq. In about 50 minutes or so, in the Roosevelt Room, the president is officially going to announce that the director of National Intelligence, John Negroponte, is stepping down from his intelligence post, moving over to become Secretary Rice's deputy. And then, also, he will formally announce nominating the replacement, Mike McConnell. He's a former director of the National Security Agency. Two individuals who, we are told, the president reached out personally and asked them to accept these new positions.

That just underscores how important it was to fill the State Department job. As you know, Negroponte key in the Iraq policy. He was the former ambassador to the U.N. former U.S. ambassador to Iraq. So it was considered to be a much better fit for him to go to the State Department. And, of course, Mike McConnell, lots of intelligence experience. They like him. Bob Gates, as you know, the new defense secretary, feel very good about working with him.

So that is what's happening today -- Tony.

HARRIS: Suzanne, we noted the president is in consultations about his strategy for Iraq.

Do we know who he is talking to?

MALVEAUX: We have a pretty good idea.

Now, today, he's reaching out to Democratic leaders. Not all of these leaders in favor of what seems to be the preference of this White House, this possible U.S. troop surge.

He is reaching out today to Senators Bill Nelson, Mary Landrieu and Blanche Lincoln.

Now, something that was very important, Tony, that happened yesterday was reaching out to the Iraqi prime minister, Nouri Al- Maliki. They had a two hour video-teleconference call. Both of the leaders talking about the various options.

The president, late in the day yesterday, emphasizing what was important was that he still was confident that Maliki was going to fulfill his end of the bargain. That is, of course, trying to get the Iraqis to security, reconciliation, going in earnest. And, at the same time, the need -- the recognition from both of them that they've got to do more to improve security -- Tony.

HARRIS: White House correspondent Suzanne Malveaux for us.

Suzanne, thank you.

COLLINS: And changes at the top before he unveils his Iraq policy. President Bush is shaking up the military leadership in the region.

According to a high ranking military source, the top U.S. commander in the Middle East, General John Abizaid, will be replaced by Admiral William J. Fallon. Fallon oversees U.S. forces in the Pacific. And according to media reports, Lieutenant General David Petraeus would replace General George Casey as top commander on the ground in Iraq. Petraeus considered an expert in counter-insurgency strategies.

Democrats in charge right now on Capitol Hill. The new Congress diving into work with housekeeping changes.

Our Andrea Koppel, part of the best political team on television, following developments on the Hill -- Andrea, the session barely underway now and the Democrats have already passed some legislation.

What can you tell us about that?

ANDREA KOPPEL, CNN CORRESPONDENT: Yes, that's right, Heidi.

Speaker Pelosi's unmistakable message, it is not going to be business as usual up here on the Hill and that she and the Democrats want to end the, what they call the culture of corruption that existed during the Republican tenure up here for 12 years.

So right out of the box yesterday, as soon as she seized the gavel, Democrats moved forward with an ethics reform package.

In it -- and they've already passed it, as of last night -- there is a limit on gifts that lawmakers can receive from lobbyists, and there is also a restriction on flights on private jets. That's just a couple of things that were passed last night.

This was, of course, playing out of the -- remember Randy Duke Cunningham, the Republican congressman from California, who was sent to jail on corruption charges.

Today, Heidi -- and they're supposed to be getting underway about 9:00 a.m. this morning -- they're going to be working on another part of this package, earmark reform, which basically lawmakers putting money into appropriations bills that's kind of tagged for projects in their home districts.

Critics say that it's pork and that it is nothing more than what they say are pet projects, rather than money that's needed for real important projects down the road.

COLLINS: Right.

And, Andrea, quickly, all this bipartisanship talk and being nice and -- we've been hearing a lot about it so far, so early on. But Speaker Pelosi already seeming to sort of draw a line on Iraq.

KOPPEL: She absolutely did, Heidi. And although she wasn't and didn't address specifically whether or not Democrats would support what we expect President Bush to announce next week, a possible surge in U.S. military troops in Iraq, she did let him know that if he wants their support, it's going to be an uphill battle.

COLLINS: All right, Andrea Koppel bringing us...

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D-CA), HOUSE SPEAKER ELECT: The election of 2006 was a call...

(END VIDEO CLIP)

COLLINS: Andrea Koppel, thanks for bringing that to us today, on this very busy day on Capitol Hill.

Appreciate it.

HARRIS: And right now we want to go to Chad Myers as quickly as we can -- Chad, you're following a line of storms moving through the South. And our understanding is that Alabama right now is getting a pounding.

CHAD MYERS, CNN METEOROLOGIST: They are. All the way from about Tuskegee right through and over the top of Auburn University.

(WEATHER REPORT)

COLLINS: Louisiana residents in shock after tornadoes tear through the southern part of their state. Roofs were ripped off, mobile homes heavily damaged. At least two people killed. There were 15 other people injured.

One uplifting piece of news -- three children who were missing after the storm blew through have now been found. One resident described what it felt like when the twisters hit.

(BEGIN VIDEO CLIP)

SCOTT JONES, TORNADO VICTIM: Yes, we had some witnesses behind the store saying that they were coming -- the tornadoes were actually coming right directly to the back of the store. And then I guess when it hit some homes and things, it kind of took a hard left and then just went right around and across 90, destroying the power lines and everything.

QUESTION: What did it sound like?

JONES: Oh, you know, your normal freight train type thing, you know? It was just -- just real loud. I had some employees inside and, you know, the first thing that popped into their minds was just to get in the store and, you know -- and it happened quick, you know? It wasn't anything lingering around or anything. But it happened pretty quick.

(END VIDEO CLIP)

COLLINS: A state of emergency has been declared in four parishes now. Today, residents are being warned about the possibility of flash flooding.

HARRIS: How about this?

A happy ending off the coast of Chile after a harrowing three days adrift at sea.

CNN's Chris Lawrence is in Newport Beach, California.

That's where the family of Ken Barnes got the news he had been rescued -- and, Chris, good morning.

Two pieces of this that I want to get to here.

First of all, how did the family react to the news, A, that he had been rescued? And have they had an opportunity to speak to him yet?

CHRIS LAWRENCE, CNN CORRESPONDENT: They have had an opportunity to speak with him. He called them just a few hours ago. A brief call, but he told them how much he loved them. They said the same thing. The family said he sounded a little delirious, but, again, the man's probably been out now for days on end, out there on that boat.

And they are -- Ken Barnes' girlfriend actually told me her stomach is still in knots, in a way. She said she's not going to feel entirely good about this until she can actually see his face again, not just hear his voice.

Let me show you some of the new pictures we have now of the actual rescue. This is hundreds of miles off the southern tip of South America, off the coast of Chile. And this is the Polar Pesca. This is a civilian, a private Chilean fishing vessel. And it was the first boat that was actually able to reach Ken Barnes' stranded ship.

And what it did was it was guided in by a surveillance plane from the Chilean Navy. It picked him up earlier this morning. He is on board, safely heading back to shore. And he did tell his family in that phone call that he was able to get some medical attention. He had a bad gash in his leg, you know, that needed some immediate attention. He's getting that.

It will take probably a day to two days to get back to shore. And then he'll begin the process of getting to Santiago and then eventually back here to California -- Tony.

HARRIS: So, Chris, this adventure -- what was he setting out to attempt to accomplish here? And how close did he get to accomplishing it?

LAWRENCE: It depends how you look at it. His ultimate goal was to go down in the record books. He wanted to be the first sailor from the West Coast to circumvent the world alone. Basically he was going to cross over three Capes.

He got all the way, you know, he set out, at the end of October, from Long Beach. He sailed south, past Mexico, Peru. But when he hit the tip of South America, he ran into that nasty storm. It ripped his masts up, shut down his engine and destroyed his steering wheel and basically set him adrift for the past few days.

So, if you look at it in terms of what he was trying to accomplish, he thought he'd be out there until April, May or June, he didn't make it.

But as his family said, he did what a lot of people never do -- he chased a dream.

HARRIS: Yes.

LAWRENCE: And it was something he had wanted to do his entire life. He didn't make it, but he'll never have to look back and wonder what if.

HARRIS: Was he in pretty bad shape at the end of this, physically?

LAWRENCE: His family said what happened was he had a lot of food on board, but that food was in a part of the boat that flooded. So a lot of his food got flooded. He had been eating Pop Tarts and a little bit of what he had left.

HARRIS: Man.

LAWRENCE: But he had the gash in his leg. He had been up for hours on end. And from the tone of voice that they described, they said he was pretty worn out and pretty delirious by the end there.

HARRIS: Yes.

How about the happy reunion?

Do we have any idea -- I think you mentioned a couple of days at least?

LAWRENCE: Yes. He should get to shore Saturday, Sunday and then they've got to get him to Santiago, and then a flight from Santiago back here to L.A. So possibly some time Monday.

HARRIS: Yes.

LAWRENCE: But, you know, that -- Monday/Tuesday he should be back home.

HARRIS: Well, we have a happy ending.

Chris Lawrence for us.

LAWRENCE: Yes.

HARRIS: Chris, we appreciate it.

Thank you.

LAWRENCE: It feels good, too, Tony.

Yes.

HARRIS: Thanks, man. COLLINS: Changes at the top -- military moves among the top brass in Iraq. We'll talk with our military analyst about who's in and who's out and what it all means.

HARRIS: One high school student shot to death, another accused of pulling the trigger.

But why?

What the suspect said -- that story ahead in THE NEWSROOM.

COLLINS: And this -- infant car seats and a very disturbing report. A story no parent will want to miss. Details on it coming up in THE NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Tales of pills and paranoia and the late Chief Justice William Rehnquist. That story just ahead in THE NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: A once secret FBI file -- stories of addiction, paranoia and political infighting. And it concerns the late Chief Justice William Rehnquist.

CNN justice correspondent Kelli Arena explains.

(BEGIN VIDEO TAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): More than a year after his death, shocking details of the life of former Chief Justice William Rehnquist are revealed.

TONY MAURO, "LEGAL TIMES": To not have the American public know this -- about this, even during a confirmation process where this kind of thing was supposed to come out -- is pretty shocking.

ARENA: In 1981, it did become public that Rehnquist was addicted to a powerful and dangerous sedative -- Placidil. But the extent of that addiction was kept secret -- until now.

MAURO: There's testimony that's contained in the FBI files indicating that Rehnquist was filling three month's prescriptions every month, meaning he was taking three times the dosage of this very strong sedative or painkiller. And you just have to wonder, was this impairing his functioning as a justice?

ARENA: During a 1981 hospital stay, Rehnquist suffered withdrawal symptoms. The doctor who treated him told FBI agents: "He imagined there was a CIA plot against him," according to the documents. The doctor also said: "He had gone to the hospital lobby in his pajamas in order to try to escape."

Rehnquist had been taking the drug for over a decade, from 1970 to 1982. E. Barrett Prettyman argued more than a dozen cases before Rehnquist and he says he never questioned his competency.

E. BARRETT PRETTYMAN, ARGUED CASES BEFORE REHNQUIST: I didn't see any side effects, outrageous behavior or anything of that sort.

ARENA: But the fact that Rehnquist was using such a powerful drug for so long raises concerns.

MAURO: I think it really does raise the question of when a justice is impaired or could be impaired, there's no way to find that out.

ARENA (on camera): There may be even more to this story that we'll never know. More than 200 pages of the report were not released and the FBI says that an entire section of the report just couldn't be found.

Kelli Arena, CNN, Washington.

(END VIDEO TAPE)

COLLINS: Getting pensions in prison -- our story about convicted congressmen doing time on your dime has touched a nerve. Just ahead, we'll look at what may be done about it.

HARRIS: And he's got a bat and he's not afraid to use it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Wham! And just that much. I got him.

(END VIDEO CLIP)

HARRIS: Bam!

Robbers may think twice about sticking up this story -- this store. That story coming up next in THE NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: A live picture of Washington, D.C. now. In just a couple of minutes -- a rainy day, as you can see there in Washington -- President Bush will announce a couple of new appointments this morning from the Roosevelt Room of the White House. The president will introduce Mike McConnell, to become his next director of National Intelligence. And he will also introduce this morning deputy -- the man who the president hopes will become the deputy secretary of state to Condoleezza Rice, John Negroponte, going back to his work, if confirmed, as a diplomat.

That is coming up at 9:50 this morning, in just a couple of minutes. And we will, of course, bring that announcement to you here live in THE NEWSROOM.

COLLINS: You saw it here in THE NEWSROOM, our report on convicted congressmen still getting pensions. The story has outraged a lot of you.

But what are the chances for reform in the new Congress?

CNN's Drew Griffin reports.

(BEGIN VIDEO TAPE)

RANDALL DUKE CUNNINGHAM, FORMER CONGRESSMAN: And I broke the law.

DREW GRIFFIN, CNN CORRESPONDENT (voice-over): Convicted Congressman Randall Duke Cunningham is getting his $64,000 annual pension while sitting inside this federal prison.

JAMES TRAFICANT, FORMER CONGRESSMAN: I'd like to have a little bit of room.

GRIFFIN: Convicted Congressman James Traficant, who snubbed his, well, snubbed his fellow colleagues, is getting $40,000 while serving prison time, as well. And they are not alone.

The National Taxpayers Union says 20 lawmakers convicted of crimes over the last 25 years still got their pensions. And the NTU estimates about a million taxpayer dollars every year are going to the pensions of Congressional crooks.

JOHN BERTHOUD, NATIONAL TAXPAYERS UNION: It's hard, unless maybe you're a member of Congress or a former member of Congress, for anybody to understand how on Earth you could ask taxpayers to pay pensions for people like that.

GRIFFIN: That's what we wanted to ask former powerful chairman of the House Ways and Means Committee, Dan Rostenkowski. He went to prison for stealing public money. Now, he gets an estimated $126,000 a year federal pension. Rostenkowski told us no comment on the phone and wouldn't answer his door.

Duke Cunningham and James Traficant didn't respond to our letters, maybe with good reason. Over the course of their retirements, Rostenkowski is expected to make $2.9 million. Cunningham may get $1.8 million. And Traficant should hit the $1.2 million mark.

Because federal pensions are secret, all of the figures you've seen in this report are estimates based on the Taxpayers Union's calculations.

So who is responding to our report?

You. Our blog is filled with comments like: "What a scam. And you wonder why we have such a deficit?"

"This is un(OBSCENE WORD OMITTED) believable."

And: "I thought crime didn't pay. It obviously pays for these felons." Despite several attempts in Congress to stop paying pensions of convicted lawmakers, or at least congressmen convicted of felonies, it hasn't happened yet.

But that may be changing.

REP. MARK KIRK (R), ILLINOIS: I think it's essential that we deny a pension to any member of Congress convicted of a felony. It's the law of many states.

GRIFFIN: Congressman Mark Kirk is from Illinois, the state that just revoked the $200,000 a year pension of its former Governor, George Ryan, now convicted of extortion and bribery. Ryan won't be getting any taxpayer funded pension and Kirk says neither should federal lawmakers convicted of crimes. His bill last year didn't pass the House, nor did a similar bill back in 1996.

But Kirk says in the new Congress the time may now be right. Speaker Nancy Pelosi's office says the speaker has supported the felony conviction clause for pensions before and said it would be considered by the relevant committees of jurisdiction in the 110th Congress.

Kirk, a Republican, says he looks forward to working with Pelosi, a Democrat, to clean a house they both agree needs cleaning.

KIRK: And she should help pass this very simple, common sense regulation to kill the pension for members of Congress convicted of a felony.

GRIFFIN: We're keeping them honest. Stand by.

Drew Griffin, CNN, Atlanta.

(END VIDEO TAPE)

COLLINS: Stormy South -- Louisiana hit by wintertime tornadoes and more menacing weather brewing today. Forecast, in THE NEWSROOM.

HARRIS: And changes at the top -- military moves among the top brass in Iraq. We will talk about it with our military analyst. That's next in THE NEWSROOM.

COLLINS: President Bush re-assigning the nation's top spy after less than two years on the job. The announcement live, 9:50 Eastern, right here in THE NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: We want to take you to the New York Stock Exchange now in New York City. A pretty important day. And the people ringing this -- sounding the bell to get the day started of some significance -- executive supporters and sponsors of the Washington, D.C. Martin Luther King, Jr. National Memorial, visiting the New York Stock Exchange to kick off the inaugural year of construction of the national memorial to Dr. King. The Dow, as we look forward to the rest of the business day, the Dow, of course, gained 6 points at the close yesterday. Big headlines from General Motors today that we will be following throughout the day, right here in the NEWSROOM, with our Susan Lisovicz.

HEIDI COLLINS, CNN ANCHOR, CNN NEWSROOM: Putting the finishing touches on a new Iraq strategy. President Bush meeting with key Senators today to discuss his Iraq plans. Sources say he may order another 20 to 40,000 U.S. troops to Iraq. The president says he is still weighing his options. But he's just days away now from unveiling his new strategy.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I will be ready to outline a strategy that will help the Iraqis achieve the objective of a country that can govern, sustain, and defend itself, sometime next week. I've still got consultations to go through. Whatever decision I make, though, will be all aimed at achieving our objective.

(END VIDEO CLIP)

COLLINS: The president held a nearly two-hour videoconference yesterday with Iraq's prime minister. He expressed confidence in his leadership.

HARRIS: Changes at the top. Before he unveils his Iraq plan, President Bush is shaking up the military leadership in the region. According to a high-ranking military source, the top U.S. commander in the Middle East, General John Abizaid, will be replaced by Admiral William Fallon. Fallon oversees U.S. forces in Pacific. And according to media reports, Lt. General David Patraeus would replace General George Casey as the top commander on the ground in Iraq.

Joining us from Chicago to talk about the changes, our CNN military analyst, retired Brigadier General David Grange.

David, great to see you as always.

BRIG. GEN. DAVID GRANGE, (RET.) CNN MILITARY ANALYST: The same.

HARRIS: What do you think about this, David, these moves about time, or just in the nick of time?

GRANGE: Well, I think really two reasons. One, that the strategy is going to change, so you bring in two commanders that can take a fresh look. Remember now, all these guys are brought up on the same doctrine so they are trained the same. But they all have their different ways to look at the situation, so take a fresh look.

The other is, though, the other two have been, Casey and Abizaid, have been in position for quite some time. And this is a wearing, fatiguing job. When you lose people like we've been losing, and that, it takes a toll.

HARRIS: David, with respect to General Patraeus, you talk about a fresh look at the problem. General Patraeus knows what the problem is, doesn't he?

GRANGE: He knows what the problem is, but you remember conditions on the ground always change. Baghdad, Iraq, in 2003, and '04, is not Baghdad, Iraq in 2006 and '07.

HARRIS: Do you believe he is in favor of, General Patraeus, is in favor of this idea of a surge of more troops?

GRANGE: General Patraeus is really looking -- looked deeply in his time back in the United States, at the Command Arms Center at Forth Leavenworth, at counterinsurgency operations. And you still have counterinsurgency operations going on, but it's not just that now. Now you have this civil war, this fight, sectarian violence going on in Baghdad, which is beyond that.

So you have to do more than counterinsurgency operations to handle the situation in Iraq right now, which really, more than ever, is tied into the whole region. And that's where Admiral Fallon comes in.

HARRIS: But to the point of -- oh, great, we'll get to that in a second.

Back to this point of counterinsurgency on the ground in Iraq, my understanding is he wrote the manual on how you fight counterinsurgency. My question is, has that manual been followed to this point? And to what extent can we say it has been working?

GRANGE: A lot of the points in this counterinsurgency manual -- and I've gone through it -- are points we have learned in counterinsurgency operations throughout America's history, applied to what we think is going to happen in the future. And so, yes, some of those things have been followed, some have not.

Actually, a lot of those counterinsurgency techniques and tactics were violated in the early days of Iraq, and that's why we are in the predicament we are now. Now the situation for counterinsurgency is much harder to fix than it was in 2003 and '04.

HARRIS: What are your thoughts on Admiral Fallon?

GRANGE: Admiral Fallon, some comments were, well, why is he -- he's a Navy guy, how is he going to handle the ground operations?

HARRIS: Yeah.

GRANGE: Keep in mind, first of all, Navy -- the sailors are brought up with Marines, air-ground components.

HARRIS: That's right, yes.

GRANGE: They work together. Second, all of the military officers in the United States armed forces are trained in joint operations early on. Since the '80s this has been going on. So they are trained in ground, air and sea operations, not just their own service. And the last thing to consider is he has Patraeus, who will be a four-star, running ground operations. It will be a ground component commander for him, and he takes a look at the entire region, just like he did in the Pacific. He will do that now in the Central Command area of Southwest Asia and the Middle East.

HARRIS: What do you think of this notion -- that's in the press today -- that the -- that Admiral Fallon, his appointment reflects a greater emphasis on countering Iranian power?

GRANGE: Well, it's about time. If we don't counter Iranian power, we're going to have a heck of a mess years from now, but it's so tied into Iraq right now. Iran's strategy is working. They're trying to do what they did with the Hezbollah in Lebanon, what they are trying to do with the Hamas in Gaza. That's what they're doing in Baghdad. Iran has to be taken on in some degree, manner or form, in order to win in Iraq. That's great, that Admiral Fallon is going to look at that, if that's the case.

HARRIS: CNN military analyst, retired General David Grange for us this morning. David, great to see you. Thanks.

GRANGE: OK (ph).

COLLINS: Lots of talk -- pardon me.

Lots of talk, Tony, about possible increase in troop strength as we have just been hearing from General David Grange. Moments ago our Congressional Correspondent Andrea Koppel had an opportunity to ask incoming Speaker of the House Nancy Pelosi a question about it as well. Listen to this.

(BEGIN VIDEO CLIP)

ANDREA KOPPEL, CNN CONGRESSIONAL CORRESPONDENT, CNN NEWSROOM (on camera): Speaker, Congratulations.

REP. NANCY PELOSI, (D-CA), HOUSE SPEAKER: Hi. Thank you.

KOPPEL: Do you support a surge in U.S. troops in Iraq?

PELOSI: No.

UNIDENTIFIED MALE: They say you're going to be a tough speaker, Ms. Pelosi? Is that --

(END VIDEO CLIP)

COLLINS: You heard our Andrea Koppel ask incoming Speaker of the House Nancy Pelosi if she as you supported a surge in troop strength? And it was difficult to hear, but saw her lips move. She said, no. She said it twice. We will continue to follow that, and see what that could mean as the day goes on.

Meantime, this morning, the Democratic control of the House focusing on pocket book items and ethics. They are taking up a pay as you go rule, that's designed to curb budget deficits. Lawmakers may also require their colleagues to attach their names to any earmarks. Those home state projects lawmakers tack onto spending bills. You know, the ones that make the oink-oink sound.

HARRIS: Oink!

COLLINS: The idea here -- I knew you were going to do that. The idea here is to curb opportunities for bribes and favors. We'll have a live report on all the action coming up next hour.

HARRIS: You need me to be predictable.

Let's check in with Chad Myers once again now.

(WEATHER REPORT)

COLLINS: Don't be fooled by appearances. This dynamic duo will tag team the bad guys.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I went after him. I had to. I had no choice.

UNIDENTIFIED FEMALE: I got my cane and I was hitting him.

(END VIDEO CLIP)

COLLINS: Crime busting at the corner store. You're not going to want to miss this one, ahead in the NEWSROOM.

President Bush reassigning the nation's top spy after less than two years on the job. The announcement, live at 9:50 Eastern, in the NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: In 1985, Steve Case co-founded America Online. At its peak, the company boasted 27 million subscribers in the U.S. This week's "Life After Work" finds Case turning his entrepreneurial spirit toward a new challenge, the American health care industry.

(BEGIN VIDEOTAPE)

ANNOUNCER: You've got mail!

STEVE CASE, CO-FOUNDER, AMERICA ONLINE: I love just love building businesses that can change the world.

VALERIE MORRIS, CNN CORRESPONDENT, CNN NEWSROOM (voice over): Steve Case co-founded America Online and eventually spearheaded the mega-merger of AOL with Time Warner, CNN's parent company.

But no matter how large his companies become, it is the creative process which drives Steve Case.

CASE: AOL was a 20-year journey and the first 10 years it started with dozens of people and when we merged with Time Warner, suddenly it was tens of thousands of people. So, it was a whole different scale. I just think I work better and am more effective in that earlier stage, kind of pioneering phase.

MORRIS: Amidst the bursting of the dotcom bubble, AOL share price plummeted. Under pressure, Case resigned as chairman of the company nearly four years ago. Still defending the merger despite its disastrous consequences for stockholders and the bottom line.

CASE: There is no question that strategically the merger was a good idea for both companies. I think the execution was difficult, particularly in the first few years.

MORRIS: Today, Case is focusing his quest (ph) for innovation on a new challenge, hoping to revamp the health care industry

CASE: It took 20 years for AOL, and other companies to really make the Internet more of a mainstream phenomena. It will probably take 20 years to revolutionize health care and make it more consumer- centric.

MORRIS: Case is the principal investor in Ready Clinics, a string of small health care facilities set up at high-traffic areas like drug stores. They're staffed by nurse practitioners who provide preventive care, and treat common medical conditions in sessions averaging 15 minutes. There are no appointments and fees are moderate.

CASE: It's a way to provide a higher level of convenience and a higher level of affordability than presently exists.

MORRIS: And as Case demonstrated, he is not afraid to taste his own medicine.

Didn't hurt at all!

MORRIS: Valerie Morris, CNN, New York.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

HARRIS: Right now let's take everyone to the Roosevelt Room of the White House, Heidi, the president to announce a couple of new appointments this morning. The president will first introduce, we believe, Mike McConnell to become his next director of national intelligence.

If confirmed, he will replace John Negroponte, who will be introduced this morning as the president's choice to become deputy secretary of State, serving under Secretary of State Condoleezza Rice. Negroponte going back to his long-established work and roots as a diplomat.

You see the men, Secretary Rice, entering the room right now. Let's have a listen.

(BEGIN LIVE FEED)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Madame Secretary, thank you, for joining us. Ladies and gentlemen, welcome to the White House.

I am pleased to announce that I intend to nominate Ambassador John Negroponte to be our next deputy secretary of State; and Vice Admiral Mike McConnell to be America's next director of national intelligence.

Under the leadership of Secretary Rice, the men and women of the State Department are working to expand freedom and defend America's interests around the world. The deputy secretary of State is a key role in shaping American foreign policy and in guiding our diplomats deployed around the globe. The deputy secretary also helps our nation's chief diplomat manage the State Department, and helps coordinate with other federal agencies so that America speaks to the world with one voice.

I have asked John Negroponte to serve in this vital position at this crucial moment. John Negroponte knows the State Department well. After all, he started there in 1960, as a foreign service officer in the administration of President Eisenhower.

In the four and a half decades since, he has served our nation in eight foreign service posts, spanning three continents. He served as deputy national security advisor to President Reagan. He represented America at the United Nations. He served as our first ambassador to a free Iraq. (AUDIO GAP) two years, has a (AUDIO GAP) job as America's first director of national intelligence.

John Negroponte's broad experience, sound judgment and expertise on Iraq and in the war on terror make him -- make him a superb choice as deputy secretary of State and I look forward to working with him in his new post.

Ambassador Negroponte leaves big shoes to fill as the director of national intelligence. The DNI has become a core part of our national security team. The DNI determines the national intelligence budget, oversees the collection and analysis of intelligence information, ensures that intelligence agencies share information with each other, and creates common standards for intelligence community personnel.

The vigilance of the DNI helps keep the American people safe from harm. And when Mike McConnell has the experience, intellect and character to succeed in this position. He served as director of the National Security Agency during the 1990s. He was the intelligence officer for the chairman of the Joint Chiefs of Staff during the liberation of Kuwait and Operation Desert Storm. Admiral McConnell has decades of experience, ensuring that our military forces had the intelligence they need to fight and win wars.

He's worked with the Congress, and with the White House to strengthen our defenses against threats to our information systems. He has earned our nation's highest award for service in the intelligence community. As DNI, Mike will report directly to me. And I am confident he will give me the best information and analysis that America's intelligence community can provide.

I thank John and Mike for taking on these new challenges. I appreciate their service to our country. Each of them will do good work in their new positions and it is vital they take up their new responsibilities promptly. I'm confident the United States Senate will also see the value of these two serving in crucial positions, and I would hope that they would be confirmed as quickly as possible.

Congratulations to you both. Thank you very much.

JOHN NEGROPONTE, DEP. SECY. OF STATE, NOMINEE: Thank you very much, Mr. President. Mr. Vice President, Secretary Rice, Admiral McConnell.

It's been a great honor, Mr. President, to serve as your first director of national intelligence. I will always be grateful to you for having given me the opportunity to help achieve the goals that you and the Congress set for intelligence reform.

During the past 20 months, I believe that our intelligence community has embraced the challenge of functioning as a single, unified enterprise and reaffirmed the fact that it is the best intelligence community in the world, second to none. That's to the credit of the hundreds -- of the thousands of intelligence professionals, who serve this nation around the globe, many in harm's way. They, and their families, make great sacrifices to keep America safe. It has been a privilege to lead them, and it is because of them that I leave the post of the directorate of national intelligence with regret.

But I am heartened to know that the intelligence community now will be led by Admiral Mike McConnell, a man whose exceptional accomplishments as an intelligence professional will ensure wise stewardship and success as the director of national intelligence. Admiral McConnell will continue to drive forward the reforms we have initiated, fully integrating the domestic, foreign and military dimensions of our national intelligence enterprise.

Now, for someone who started his career as a junior foreign service officer in October of 1960, the position, Mr. President, to which you are now nominating me is an opportunity of a lifetime. If confirmed by the Senate as deputy secretary of State, I look forward to supporting Secretary Rice in carrying out your foreign policy goals.

I particularly welcome the opportunity to help her provide leadership to the thousands of Americans and foreign nationals who work in the Department of State here in the United States and in the more than 270 embassies, consulates and diplomatic missions the department maintains overseas, whether in Baghdad, Kabul, Kosovo or elsewhere, these dedicated professionals are on the front line of advancing America's commitment to freedom.

It will be a great privilege for me to come home to the department where I began my career and rejoin a community of colleagues whose work is so important and of whom the nation is so justly proud. Thank you very much.

BUSH: Michael? ADMIRAL MICHAEL MCCONELL, NOMINEE: Mr. President, Mr. Vice President, Secretary Rice, ambassador, thank you very much, sir, for your kind remarks and your vote of confidence in asking me to become your second director of the national intelligence.

If confirmed by the Senate, I look forward to serving you, Mr. President, the nation's senior leadership, and all the great men and women of our national security and homeland security communities. I understand these people rely on timely and useful intelligence every day.

Having spent most of my adult life in the intelligence community, focused on getting the right information to the right decision-maker, in the right time and format, I'm excited about returning. Fortunately, my work over the past 10 years, after leaving government, has allowed me to stay focused on national security and intelligence communities as a strategist and as a consultant. Therefore, in those respects, I never left.

I have followed the issues and the initiatives, hope to be quickly and directly relevant to build on the many accomplishments of Ambassador Negroponte and his team.

Unlike just a decade ago, the threats of today, and the future, are moving at increasing speeds and they cross organizational and geographic boundaries. This will require increased, coordinated responsiveness by our community of intelligence professionals.

I plan to continue the strong emphasis on integration of the community to better serve all of our customers. That will mean better sharing of information, increased focus on customer needs and service, improved security processes, and deeper penetration of our targets to provide the needed information for tactical, operational and strategic decision making.

Public service has always been my passion. I look forward to serving this great nation as we continue to fight on the global war on terrorism and to face the many new challenges of the new century. I want to thank my wife, Terry, and my wonderful family and our grandchildren, for their support as I take on these new challenges.

Thank you again, Mr. President. All the best, Mr. Ambassador for your new leadership role at the Department of State.

BUSH: Thank you all.

(END LIVE FEED)

HARRIS: There you have it from the Roosevelt Room of the White House this morning, the president introducing Admiral Mike McConnell to become his next director of national intelligence and Ambassador John Negroponte to become deputy secretary of State under Secretary Rice.

Both men will have to be confirmed into their roles, McConnell by the Senate Intelligence Committee and Negroponte by the Senate Foreign Relations Committee. Of course, we will follow that confirmation process and bring it to you right here in the NEWSROOM.

COLLINS: Shifting strategy, President Bush finalizing his new plan for Iraq, a behind-the-scenes look at the process from former White House insider David Gergen. He's in the NEWSROOM.

HARRIS: He seems to have a lot to say these days, Osama bin Laden's top deputy calling for a holy war in Africa. His message in the NEWSROOM.

COLLINS: Infant car seats and a disturbing report. A story no parent will want to miss. Details coming up in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Some safety news for parents. "Consumer Reports" says most of the rear facing infant car seats on the market failed its crash tests. The magazine tested 12 seats, 10 failed, some flew off their bases. In one case, the dummy was thrown 30 feet from the car.

All the tested seats passed federal government crash tests at speeds of 30 miles an hour. "Consumer Reports" conducted its tests at higher speeds, 35 to 38 miles per hour. The magazine says only two seats provided adequate protection. The Baby Trend Flex Lock and the Graco Snug Ride with EPS.

COLLINS: Good morning, everybody, I'm Heidi Collins.

HARRIS: And I'm Tony Harris. Spend a second hour in the NEWSROOM this morning and stay informed. Here's what's on the rundown. Stormy south, tornado watches across three states this morning. Twisters already leaving a scar on Louisiana. Meteorologist Chad Myers with the spring-like weather in the dead of winter.

COLLINS: An American sailor rescued after days adrift on the high seas, his round the world plan scuttled by a storm.

HARRIS: Trinkets and tokens going to war, the little things a soldier carries along on a mission. Pocket protectors, this Friday, January 5th. You are in the NEWSROOM.

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