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U.S. Troops Stumble Across Torture Chamber in Iraq; President Bush Holds News Conference; Legal Troubles Threaten to Overshadow Zuma Victory in South Africa

Aired December 20, 2007 - 12:00   ET

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


JIM CLANCY, CNN INTERNATIONAL ANCHOR: South Africa's Jacob Zuma poised to become the country's next president or not? He may be going to jail instead.
COLLEEN MCEDWARDS, CNN INTERNATIONAL ANCHOR: CIA tape controversy. President Bush insists he knew nothing before a briefing this month.

CLANCY: Taking on the devil, symbolically. Pilgrims in Saudi Arabia complete an important and sometimes dangerous Hajj ritual.

MCEDWARDS: And addicted to the Internet. China's got a tough program to tear people loose from their computer screens.

CLANCY: It is 7:00 p.m. right now in Johannesburg, South Africa, 8:00 p.m. in Mecca, Saudi Arabia.

Hello and welcome, everyone, to our report seen around the globe.

I'm Jim Clancy.

MCEDWARDS: And I'm Colleen McEdwards.

From Berlin to Beijing, from Washington to Warsaw, wherever you're watching, this is YOUR WORLD TODAY.

We will have all those stories coming up, but first several troubling developments in Diyala province to tell you about, one of the most violent regions in Iraq. A suicide bombing near Baquba underscores the risk of civilians who help U.S. and Iraqi forces.

A policeman says 13 members of a neighborhood patrol against al Qaeda were killed. That was when an attacker blew himself up. The U.S. military though puts the death toll at six and says a soldier is among the dead.

CLANCY: Well, U.S. troops sweeping another area of Diyala province have come across a chilling discovery, a torture chamber with blood-spattered walls, chains, and a metal bed attached to an electrical shock system.

Harris Whitbeck reports the gruesome find doesn't end there.

(BEGIN VIDEOTAPE) HARRIS WHITBECK, CNN CORRESPONDENT (voice over): The al Qaeda complex was found in Diyala province, north of Baghdad, thought to be a safe haven for the Iraqi insurgency. As U.S. troops swept the area, they came upon what appeared to be an underground detention facility. It turned out to be that and more.

UNIDENTIFIED MALE: The building we're in right now, it's a torture facility. It's got a lot of chains up on the ceiling. It's also got the chains where they were shackled to people up there. In addition, we had several different torture implements.

WHITBECK: According to the U.S. military, 24 insurgents were killed and another 37 were detained in the operation. A large weapons cache was also found.

As U.S. soldiers searched the area, the horror of what had transpired there began coming to light. The remains of 26 people were found buried in shallow graves.

UNIDENTIFIED MALE: Right now we're not having any luck with identification because the remains are anywhere between six to eight months decomposed, but the local nationals are helping out, as you can see behind me. The grim reality of it all has kind of hit them.

WHITBECK: The U.S. military says as it has increased operations in Baghdad and Iraq's western provinces, it is forcing al Qaeda and other insurgent groups to find safe havens elsewhere.

MAJ. GEN. DON SHEPPERD (RET.), CNN MILITARY ANALYST: It says that the surge is working. These people are now on the move. Before they had sanctuaries all over Iraq, particularly in the Sunni provinces out west. The tribal leaders banded together to push them out of those areas, and they're now on the move.

WHITBECK (on camera): But while they might be on the run, the U.S. military says insurgent groups like al Qaeda are still very capable of staging spectacular attacks, particularly against infrastructure, and of running more torture and detention centers to keep local populations in check.

Harris Whitbeck, CNN, Baghdad.

(END VIDEOTAPE)

MCEDWARDS: Iraq and questions about torture dominated a news conference U.S. President George Bush held just a little while ago.

Let's get more now. We'll go to Kathleen Koch, who is standing by in Washington.

Kathleen, this question just keeps coming up and President Bush doesn't want to answer.

KATHLEEN KOCH, CNN CORRESPONDENT: Certainly, that question -- you're obviously speaking about the interrogation tapes is one that the president has stayed away from, but there's very -- a wide range of issues that came up in this press conference, and it was unusual because the president had one just roughly two weeks ago, but he clearly felt the need to sort of wrap up the year, summarize his accomplishments, and push Congress a bit for more action.

Also a lot of international issues, Iraq and Afghanistan. Questions were asked about whether or not both countries were making progress toward peace, toward stability.

On Afghanistan, the president said it's a "society that is evolving." It takes a while for nations brutalized by tyranny and racked by war to meet expectations. As to Iraq...

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I am pleased to report that there has been two readings of the de-Ba'athification law to the council of assemblies. Well, Bill, if your standard is -- if you're trying to judge the Iraqi parliament based upon our own Congress' ability to get bills done, is that what you're saying? I'd be a little careful.

It took Congress until the last minute to get things done. I mean, the legislative process is not all that smooth at times.

(END VIDEO CLIP)

KOCH: Now, on the interrogation tapes, the focus was when President Bush found out about them, whether or not he approved of the destruction of the tapes. And the president said he thought he was "pretty clear" when he said that his recollection of first learning about the tapes was from CIA Director Michael Hayden earlier this month, just before the story broke. And the president said he would not prejudge the outcome of the preliminary inquiry that's under way right now, the Justice Department and CIA inquiry. And so he said that until it's complete, he would be "rendering no opinion from the podium."

So, basically, Colleen, saying nothing more.

MCEDWARDS: Yes, understood.

Kathleen Koch at the White House for us.

Kathleen, thanks.

KOCH: You bet.

(NEWSBREAK)

CLANCY: Well, the man standing in line to become South Africa's next president may soon be officially charged with corruption. The announcement comes just two days after Jacob Zuma was named leader of the ruling African National Congress.

Will legal troubles overshadow his dramatic victory?

Let's get some reaction now from Robyn Curnow. She's in Polokwane in South Africa.

Robyn, we're hearing talk of formal corruption charges against the new leader of the ANC. What are we hearing from Jacob Zuma?

ROBYN CURNOW, CNN INTERNATIONAL CORRESPONDENT: Well, Jim, Jacob Zuma's attitude is, bring it on. If you have evidence charge me, don't threaten to charge me, which is what the chief prosecutor did this morning. He did it on local radio.

That said, Jacob Zuma, the thought of sitting in a courtroom facing these corruption charges can't be that comfortable because these are very serious corruption charges relating to kickbacks during an arms deal in the later days of the Nelson Mandela presidency. Jacob Zuma's financial adviser is even serving 15 years in jail currently after being found guilty of soliciting bribes on behalf of Zuma.

So not just uncertain times for Jacob Zuma, but also for South Africa -- Jim.

CLANCY: Well, Jacob Zuma wasn't alone. Less than 48 hours ago, tumultuous celebrations there within the ANC at his victory to become head of the party. Does the ANC have a plan B here? Who do they go to? This man is supposed to be the next president.

CURNOW: They do have a plan B. The deputy president of the ANC can always step in, but I think the important thing from Jacob Zuma's camp is that he says under no circumstances is he going to step down or resign even if he's charged.

He's willing to fight these corruption charges during a long and lengthy trial while he's standing as the leader of the largest ruling party here in South Africa. He says he'll only step down if he's found guilty.

CLANCY: All right.

Robyn Curnow there in South Africa, where the ANC conference has been ongoing.

We should note that there was a picture of Thabo Mbeki that was shown there. He is the previous leader of the ANC. He was defeated -- Colleen.

MCEDWARDS: Right.

A U.S. researcher has compiled a list of what he says are the most memorable quotes of 2007.

CLANCY: That's right. And those are some doozies coming up. Right after a short break on YOUR WORLD TODAY, we're going to share some of them with you. This is fun.

MCEDWARDS: Yes. Here's a hint. The first one involves a 39 and a 43.

Stay tuned.

(COMMERCIAL BREAK)

CLANCY: Hello, everyone, and welcome back to CNN International and YOUR WORLD TODAY.

MCEDWARDS: We are seen live around the world, including in the United States this hour.

Thanks for being with us.

It is a remarkable story now to tell you about, love and survival. This one out of northern California, and thank goodness a happy ending here.

CLANCY: There was a lot of concern. People didn't know if this was going to turn out or not. Three days ago, Frederick Dominguez and his three children took a hike into the wilderness. What were they looking for? They wanted to bring home a Christmas tree.

MCEDWARDS: That's right. John Roberts has the story of their ordeal and their rescue.

(BEGIN VIDEOTAPE)

ALEXIS DOMINGUEZ, RESCUED FROM FOREST: I wanted soup and brownies.

CHRISTOPHER DOMINGUEZ, RESCUED FROM FOREST: We just kept dreaming about food.

JOHN ROBERTS, CNN CORRESPONDENT (voice over): And this is how a harrowing ordeal ends. Three children home with their mother, safe and sound. What started as a search for the perfect Christmas tree turned into a three-day fight to survive. They spoke with Anderson Cooper last night.

C. DOMINGUEZ: I was practically half way out of the tree, the shelter that my dad had made, just trying to keep Josh warm since I was next to him, and we just did the best that we could.

ROBERTS: Frederick Dominguez and his three kids, Chris, Alexis and Josh got lost in the snowy mountainous woods of northern California. An anxious mother feared the worst.

LISA SAMS, MOTHER: My heart hurts. I just want to find my kids and bring them home.

ROBERTS: As more than 80 searchers scoured the woods and helicopters searched from above, the Dominguez family huddled together, battling the cold.

A. DOMINGUEZ: My dad like cut up the shirt, and Chris cut up his shirt and we made new socks so our feet could stay warm.

ROBERTS: Older brother, Chris, stayed positive, setting the example for his younger siblings.

C. DOMINGUEZ: Especially in front of them, I didn't want them to really lose hope. Whenever they would freak out I would just be like, it's all right.

ROBERTS: Then as bad weather was again rolling in a helicopter pilot making one last pass saw the father waving his arms, and the family's prayers were answered. They were searching for a tree, but instead found the inner strength to survive in the wilderness, and now have a Christmas story to remember.

FREDERICK DOMINGUEZ, FATHER: Well, my youngest boy said, "Dad, are we going to make it? Are you sure we're going to make it? I said son I would tell you what I bought you for Christmas if I thought we weren't going to make it.

ROBERTS: John Roberts, CNN, New York.

(END VIDEOTAPE)

CLANCY: All right. Well, this hour we're going to be counting down some of the top 10 quotes of 2007. Not necessarily the most intelligent quotes, but they were compiled by the editors of "The Yale Book of Quotations."

MCEDWARDS: Yes, and with that disclaimer right there. We told you about this one right before the break. The quote taking 10th place involves two numbers, 39 and 43. Our video gave a bit of a hint there, but I don't know if people have figured it out or not.

CLANCY: It's what the 39th U.S. president, Jimmy Carter, had to say about number 43, the current president, George W. Bush. "I think as far as the adverse impact on the nation and around the world, this administration has been the worst in history."

MCEDWARDS: Yes. Who could forget that one? Jimmy Carter, though, certainly known for speaking his mind.

CLANCY: Yes. And there's never been any love lost between those two guys, anyway.

MCEDWARDS: Nope.

CLANCY: Democrats, Republicans.

MCEDWARDS: Evidence of it right there in that quote.

Another Washington politician features high on our list of quotable quotes.

CLANCY: That's right, Colleen, what Larry Craig said after his -- how can I put this -- restroom rendezvous with an undercover cop?

MCEDWARDS: Yes. The senator's words immortalized in the police blotter for everyone to see. We're going to fill you in on that one in case you've forgotten. That will be later this hour. CLANCY: Plus, also coming up, rescued from cyberspace. A boot camp in China helping teens kick a habit.

(NEWSBREAK)

(COMMERCIAL BREAK)

CLANCY: Welcome back to you, all of our viewers joining us from around the globe, including right here in the United States.

This is YOUR WORLD TODAY.

I'm Jim Clancy.

MCEDWARDS: And I'm Colleen McEdwards.

Some of the top stories that we're following for you right now.

South Africa's president in waiting may soon face corruption charges. The country's top prosecutor says he has enough evidence to put Jacob Zuma on trial. This legal twist comes just days after Zuma was elected leader of the ANC, South Africa's ruling party.

CLANCY: British media reporting that Sean Hoey has been found not guilty of all charges related to the 1998 car bombing in Omagh, northern Ireland. He was cleared of charges for the murders of 29 people in a shopping mall.

A chilling discovery in Iraq. U.S. troops sweeping the volatile Diyala province say they came across a torture chamber that may have been used by al Qaeda. They say they also uncovered some graves. At least 26 bodies in them, and that was right nearby.

CLANCY: All right.

Well, Diyala province is still a hotbed for insurgents, in some places very fluid. Other areas of Iraq have seen a marked decline in violence attributed in part to the surge of U.S. troops, but overall how does the United States feel about the war? How has the effort really gone this year?

David Satterfield is the senior adviser to the U.S. secretary of state. He's been an ambassador in the Middle East, he has been the special envoy for Iraq. He joins us now with some perspective. He's joining us from Washington.

All right, 2007, I don't know -- it's not a success story, but it's certainly a turnaround. There's no one reason, but what do you think the fundamentals are?

DAVID SATTERFIELD, SR. ADVISER TO U.S. SECRETARY OF STATE: Jim, we see 2007 as a year of significant progress in two critical areas in Iraq. First and foremost, security and stability.

The population of Iraq in more areas to a higher level than at any point in preceding years is enjoying greater security. And the other area where progress has been made is in economics and delivery of services, critical to delivering security and getting a better sense of future, a future of hope for the people of Iraq, but progress has not been matched in the national level.

That's where the secretary of state in her most recent visit to Iraq. That's where the president and that's where all of us will be focused over the time ahead, getting national political progress to match what has been done in security, to match what is being done in economics and sustain that positive progress.

CLANCY: Let's talk about specifics there because the U.S. has been trying to give Sunni volunteers incorporated into the military. The Shia alliance, the main political party there is just balking, it's not moving. How does the U.S. make them move?

SATTERFIELD: In fact, we have seen progress. The government has taken into the national security forces and more importantly, Jim, has taken into the national life of the country outside the security services which is where most of these people are going go, where they're going to be employed. Large numbers of these volunteers, but more has to be done. This has to be a comprehensive process and it has to go behind Anbar in an area beyond Diyala province which they all are working on intensively.

CLANCY: One word that worrying ayes a lot of people, corruption. Iraqis themselves say it is the second form of terrorism in the country. $18 billion missing according to some accounts. What's the reality?

SATTERFIELD: The reality is corruption is a major problem in Iraq, has been a major problem. We have dealt with this by helping to support Iraqi institutions that combat this pernicious (ph) crime, theft from the Iraqi people, but what we've also done is work with Iraq's security forces and its government in addressing some of the key sources of corruption, the oil sector. This is not a perfect process. It's a difficult, difficult challenge in Iraq as in many developing progress, but it's progress where it must continue to be made over the year ahead.

CLANCY: Perhaps the biggest on story in Iraq this year wasn't what happened, but what didn't happen. You know, al Qaeda seemed to lose its way. It seemed to lose all of its credibility. It lost its safe havens, what lessons are to be taken from that?

SATTERFIELD: Jim, this wasn't an accident. This was the result of several factors coming together. The surge, more capable Iraqi forces that are able with us to take the lead and most importantly, I would say, a flip in perspective and operations.

The people of provinces like Anbar, of Baghdad sickened by the violence which al Qaeda was inflicting upon them and their communities, reacted by turning their guns, by turning their will against al Qaeda and forcing it out of the safe havens. It's a process we are continuing and in which the Iraqi government must sustain and support.

CLANCY: You're trying to move that model that worked against al Qaeda and Afghanistan.

SATTERFIELD: We trying to move this model not just comprehensively and Iraq and elsewhere, yes.

CLANCY: As you look at the situation in Iraq as it moves forward. You've still got four million people out of their homes. They are starting to come back, but in many ways they're the real judge of whether this is working, whether things are really getting better. What can be done to help them?

SATTERFIELD: You've stated it exactly, these people coming back to Iraq need to come back to security and stability and they need to come back to homes. This is a major challenge. It's a challenge to the security and stability that has been established. It was a challenge in the Balkans where we saw the same phenomenon. We're working with the Iraqi government so they can have a consistent, structured approach to providing a normal life for these people and that, in turn, will induce still more of these refugees to return to their homes as rapidly as possible.

CLANCY: David Satterfield, coordinator for Iraq, senior adviser to the secretary of state. David, I want to thank you very much for being with us.

SATTERFIELD: Thank you.

MCEDWARDS: Well, now to the international manhunt for suspects in last week's deadly bombing in Algeria. Police in France have detained five people in connection with that attack. At least 37 people were killed, it was a double suicide truck bombing. It happened at the U.N. offices in Algiers. Al Qaeda in north of Africa claimed responsibility. The five men in custody do have suspected links to that group.

CLANCY: The verdict is in. It was the worst single atrocity in Northern Ireland's violent history. A judge in Belfast declaring defendant Sean Hoey not guilty of killing 39 people in Omagh. The attack took place nearly a decade ago, but as we hear from Nic Robertson, it's doubtful anyone in Northern Ireland, anyone that ever saw the pictures of what happened on that street will ever forget August 15, 1998.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: This was the aftermath of the 1998 Omagh bombing, the deadliest in 30 years of violence in Northern Ireland. Twenty-nine people, including a woman pregnant with twins killed while out shopping one summer Saturday.

What happened that day, a bomb warning was called into the police, but there was confusion and the police heard that the shoppers from the center of town down here, right past the bomb that was parked there. So when it went off there were lots of people around and that's yet death toll was so high. Sean Hoey an alleged member of a splinter terror group the real IRA was charged in what became Britain's biggest mass murder trial, but there were problems. ALAN MURRAY, SECURITY JOURNALIST: There were instances where the evidence has been challenged, where witnesses have been accused of being liars, police witnesses.

ROBERTSON: Hoey refused to testify. Michael Gallagher's son Aden was killed in the bombing. Ever since he has pushed the government to bring the bombers to justice. He's angry that despite government promises to track down the killers, so many people involved, bomb maker, drivers, scouts are still free.

MICHAEL GALLAGHER, OMAGH FAMILIES SUPPORT GROUP: I think there's no doubt that there is a lot more information there. I think the intelligence services have not cooperated fully and the criminal investigation.

ROBERTSON: Gallagher has recently won backing from influential Irish and Northern Irish commissioners for an unprecedented cross- border inquiry that could ultimately force intelligence and security services to release everything they know.

MONICA WILLIAMS, HUMAN RIGHTS COMMISSION: We do feel that there's a necessity now to have an independent person look at Omagh and the circumstances around Omagh.

ROBERTSON: In Omagh, today the physical cars of August 1998 are buried within reconstruction, but emotional wounds are still raw, left open by a failure to find all the bombers.

Nic Robertson, CNN, Omagh, Northern Ireland.

(END VIDEOTAPE)

MCEDWARDS: Some people call it cyber addiction. The rest of us know it when we see it. Sometimes the kids are glued in front of the computer and you can't tear them away.

CLANCY: China is making the issue a national priority at setting up government-funded rehabilitation clinics.

MCEDWARDS: Imagine this. The treatments range from controversial stuff like shock therapy to things like hypnosis and this notion of a boot camp, if you will. Tough love.

CLANCY: Let's take a closer look. John Vause takes us there.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT: This is boot camp for Internet junkies where a growing number of Chinese kids are being rescued from cyberspace, dragged back into reality. This woman who didn't want to be named says her 15-year-old son would lock himself away for hours. They'd constantly argue and his school work suffered. He clearly wasn't interested in what she was saying. Internet addiction is defined as spending four hours a day or more online. In some cases to break that, patients are shocked with low-voltage jolts.

I just play online for as long as I could, says this 18-year-old, even if I was tired I wanted to reach a new level I couldn't stop.

Many are addicted to games where they become one of the characters. So this is part of their therapy. Laser tag, a real game in the real world.

Experts say all of these kids lack self-confidence and they couldn't cope with pressure from their parents to do well at school, which is why computer games where success counts with such little effort, are so addictive.

The clinic is run by Tao Ran. Each year he treats almost 1,000 kids, some cases are extreme.

One boy broke up with his girlfriend, he says, and became addicted to the Internet. For three years he never left his room. He didn't shower or cut his hair.

Earlier this year at a Guangzhou Internet cafe police say a man aged about 30 died from exhaustion after playing online for three straight days. Shanghai police are now enforcing a 16-year age limit at all Internet cafes. Every minute in China, 100 new users are logging on and many of them, like these kids, will have trouble logging off.

John Vause, CNN, Beijing.

(END VIDEOTAPE)

CLANCY: I'm happy to announce now whether you're addicted to the Internet or not we have the most memorable quotes of 2007.

MCEDWARDS: Yes. Our next installment right here. Who can forget this one? This is from Idaho Senator Larry Craig who denied he was trying to signal, illicit intentions toward an undercover police officer by saying, quote, and you know you want me to read this one, "I have a wide stance when going to the bathroom."

CLANCY: It doesn't explain the tapping toe. Never mind.

MCEDWARDS: Or the hand signal.

CLANCY: Here's one from the democratic presidential candidate Joe Biden talking about a republican candidate, former New York Mayor Rudy Giuliani.

(BEGIN VIDEO CLIP)

JOE BIDEN (D), PRESIDENTIAL CANDIDATE: There are only three things he mentioned in his sentence, a noun, a verb and 9/11. I mean, there's nothing else.

(END VIDEO CLIP)

CLANCY: Well, Giuliani was the mayor of New York City during the September 11th attacks.

MCEDWARDS: Biden may have a point there. Giuliani does seem to bring it up an awful lot. He's been criticize toward that.

CLANCY: They've made the point.

MCEDWARDS: Point made.

CLANCY: We'll have more of those.

MCEDWARDS: Coming up later. All they want for Christmas is your vote.

CLANCY: Just ahead on YOUR WORLD TODAY, the presidential candidate getting in the holiday visit with the latest political messages.

MCEDWARDS: We'll take a look at their Christmas campaign commercials when we come back.

(COMMERCIAL BREAK)

CLANCY: Hello, everyone. Welcome back. You're watching YOUR WORLD TODAY on CNN International.

MCEDWARDS: We are seen live in more than 200 countries and territories all around the globe. We are not far from the beginning of 2008, just days away and for those following U.S. politics, it will be less about the new year and more about something called the presidential election.

CLANCY: For all of you political junkies, that includes us. This begins on the third of January of the first true test of where the candidates stand with the American electorate.

MCEDWARDS: Where the players refer to it simply in Iowa and a new poll from the battleground shows that while the democratic race is tight, they feel no surprise, but it is wide open.

CLANCY: Let's take a look here, the latest CNN Opinion Research Corporation poll out of Iowa finds contenders neck and neck. 30 percent of likely democratic voters support Hillary Clinton. 28 percent support Barack Obama. 26 percent say they'll vote for John Edwards. That's well within the poll's four percentage point margin of error. It's a statistical dead heat in Iowa.

MCEDWARDS: It really is. In the republican field Mike Huckabee leads in Iowa, but with 40 percent of likely republican voters undecided, you know, it's anybody's race. The same CNN Opinion Research Corporation poll we told you about found support at 33 percent for Huckabee, Mitt Romney rolling out there in second place. He's got 25 percent. Rudy Giuliani trails with 11 percent at least in that one.

One of the lesser-known republican presidential candidates is calling it quits two weeks before the Iowa caucuses. Congressman Tom Tancredo was known for his forceful opposition to illegal immigration. He consistently pulled at the bottom of this nine-person field. Former candidate now expected to make the official announcement later this afternoon. He'll have a news conference and that one will happen in Iowa.

CLANCY: It's interesting in Tancredo's case because yes, immigration is a big issue. He wanted to boot everybody out, and put up walls and everything.

MCEDWARDS: It was hard for him to find a home once those statements were made, yeah.

CLNACY: Didn't go much further than that.

At this time of year retailers like to trot out every holiday catch phrase and every symbol they can find it use it in their ads.

MCEDWARDS: Apparently presidential candidates are hoping to have Santa Claus or Christmas tree in their political ads will give them what they want for Christmas and that would be ...

CLANCY: They had that warm, glowing feeling until they saw this one from Joe Johns, our reporter.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN CORRESPONDENT: Top of my Christmas wish list, more political ads, and Santa has been very generous. Here's one from Hillary Clinton and she knows just what all you good girls and boys want.

SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: Where did I put universal pre-k? Oh, OK. There it is.

JOHNS: But seriously, folks, take John Edwards. Please, he's deadly serious.

JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: One out of every four homeless people on our streets is a veteran. 37 million Americans live in property, who speaks for them? We do. This is the season of miracles.

JOHNS: So he hopes. On the republican side look at Rudy in a Santa-red sweater and look, Santa's with him. This ought to be good.

RUDY GIULIANI (R), PRESIDENTIAL CANDIDATE: Job growth, fiscal discipline, strict judges.

JOHNS: But wait, there's more.

GIULIANI: A fruitcake or something?

UNIDENTIFIED MALE: What?

GIULIANI: It will be a nice fruitcake.

JOHNS: So much levity. Time for the true Christmas of Christmas ad, for that we turn to the resident minister.

MIKE HUCKABEE (R), PRESIDENTIAL CANDIDATE: What really matters is the celebration of the birth of Christ.

JOHNS: There are some arguing with the floating cross or is it a bookshelf? They see it as a subliminal message. A message about Christ on Christmas? Shocking! Too much controversy. Time for the video equivalent of a warm cup of cocoa loaded with marshmallows with the warm and fussy Obamas.

MICHELLE OBAMA: We'd like to take a moment to thank you and your family.

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: I'm Barack Obama and I approved this message.

OBAMA: Merry Christmas.

OBAMA: Happy holidays.

JOHNS: Nice ads. I'll put them next to my lump of coal.

Joe Johns, CNN, Washington.

(END VIDEOTAPE)

CLANCY: Oh, Joe, you were awful hard on them. Anyway, for the latest campaign news, analysis, political blogs, polls, everything to do with politics go to CNNpolitics.com and in our election center 2008 you'll find information about the candidate, the states to watch, the issues, the U.S. voters are concerned about most.

MCEDWARDS: We are so not done with this. We are still counting down the most memorable quotes of the year and we have two more on the list.

CLANCY: This was a popular catch phrase the former U.S. Attorney General Alberto Gonzalez who had hearings earlier this year. We'll get it again.

(BEGIN VIDEO CLIP)

ALBERTO GONZALEZ, U.S. ATTORNEY GENERAL: I do not recall what I knew about Mr. Bogden. I don't recall any -- I don't recall remembering -- I don't recall the reason -- I don't recall specifically the -- the genesis of the idea. I don't recall ...

(END VIDEO CLIP)

CLANCY: I don't recall either.

MCEDWARDS: Different inflexion, different gestures. Anyway, denial apparently a big theme this year. Let's listen to another classic quote and this is from Mahmoud Ahmadinejad.

(BEGIN VIDEO CLIP)

MAHMOUD AHMADINEJAD, PRESIDENT OF IRAN: In Iran we don't have homosexuals like in your country. (END VIDEO CLIP)

CLANCY: Oh, boy. They were laughing for a long time after that one. President Ahmadinejad speaking there at Colombia University there last fall.

MCEDWARDS: It was the laughter that was so telling there. The audience just burst out. We are not done here yet, we'll have the top two quotes of the year for you, just a little later in the program.

CLANCY: The top two coming up. Up next, many of us are in the holiday spirit, so it's good to be giving, right?

MCEDWARDS: Well, believe it or not, too much kissing could be a bad thing, at least if you live in Spain.

CLANCY: We'll see how generous customers may actually be hurting their own economy.

(COMMERCIAL BREAK)

CLANCY: Spain may just rank as one of the best places to be a waiter thanks to very generous customers.

MCEDWARDS: But the country's finance minister warns that excessive tipping is actually having a negative impact on the country's economy.

CLANCY: Al Goodman's there.

(BEGIN VIDEOTAPE)

AL GOODMAN, CNN CORRESPONDENT: Do Spaniards really tip too much? Do they not understand the euro which replaced the Spanish peseta and other European currencies almost six years ago? The finance minister thinks so.

PEDRO SOLBES, SPANISH FINANCE MINISTER: Spaniards are still not fully conscious about the value of the euro. They have two coffees in a bar and leave the tip of one euro.

GOODMAN: A coffee at the table costs two euros and 5 cents, 65 cents less at the bar. Have two, leave a euro and you're tipping 24 to 38 percent, of course, not everybody does that. They didn't leave anything says waiter Felipe Majano. This client like many Spaniards leaves loose change.

DAVID RODRIQUEZ, SOFTWARE SALESMAN: After the price of coffee and coke went up because the euro, that's plenty pep.

GOODMAN: Prices of food and other products rose with the conversion to the euro says the Spanish consumer group which scolded the finance minister for blaming rising inflation on tipping. He later said his comments were taken out of con and we found it hard to find any big tippers, even in this fancy Madrid cafe. Not this Frenchman. Do the Spaniards tip too much in the restaurants? MORGAN HUERTA, SALESMAN: No, I don't think so.

PIERRE HEURE: What about the French? Do the French tip too much? Of course not.

HUERTA: My coffee is 1.30 and I would leave 20 or 30 cents as a tip.

GOODMAN: Are you driving up inflation?

HEURTA: No. I don't think so. No, no, no.

GOODMAN: This Spanish waitress off duty here says she knows all about tipping.

ARANTXA ALVAREZ, WAITRESS: The Americans and English and Germans have are the best tippers. Spaniards and Italians are the worst.

GOODMAN: We finally found a tipper who would really give the finance minister heartburn.

UNIDENTIFIED FEMALE: I'm a student, but I'll still leave one euro as a tip.

GOODMAN: Don't you think that's wrong? The minister says that's too much tip?

UNIDENTIFIED FEMALE: I don't feel bad at all. I know maybe we shouldn't be doing it.

GOODMAN: But she does it anyway, and some people overdo it. A three-euro tip, he says, it's my lucky day. Lucky for him, maybe bad luck for the Spanish economy.

Al Goodman, CNN, Madrid.

(END VIDEOTAPE)

MCEDWARDS: I leave a big tip for coffee, especially if I've been sitting there for a while, you know, on the Internet or a while.

CLANCY: Coffee tastes better. I'm sure you'll get better service the next time. All this hour we've been giving you the top ten quotes of 2007 as compiled by the Yale book of quotations.

MCEDWARDS: Coming in at number two, a butte queen demonstrates yet swimsuit completion might be her strong suit after all.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I personally believe that U.S. Americans are unable to do so because some people out there in our nation don't have maps and that I believe that our education like such as in South Africa and Iraq, everywhere -- like -- such as -- and I believe that they should -- our education over here in the U.S. should help the U.S. -- or should help South Africa and should help other Asian countries so we will be able to build up our future for ...

UNIDENTIFIED MALE: Thank you very much. South Carolina.

(END VIDEO CLIP)

CLANCY: They're ringing the bell, you know, they didn't have a book, but they rang the bell.

MCEDWARDS: There are a shortage of maps in the U.S. such as.

CLANCY: In all reality, she's a young lady and made a mistake, didn't look good, but she got up there.

MCEDWARDS: We can tell you what the question was, but it probably wouldn't make a difference.

What could top that? How about another YouTube moment, a young man being led away, this was after disrupting a John Kerry speech in Florida.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Don't tase me, bro! Don't tase me!

(END VIDEO CLIP)

CLANCY: Obviously, he asked not to be tasered and he was anyway. There you have it, folks, the number one most memorable quote of 2007. That's our report.

I'm Jim Clancy.

MCEDWARDS: I'm Colleen McEdwards. You're watching CNN.

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