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John McCain Speaking at the National Convention for Veterans of Foreign Wars; Barack Obama Holding a Town Hall Meeting in Albuquerque, New Mexico

Aired August 18, 2008 - 09:00   ET

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


HEIDI COLLINS, CNN ANCHOR: Good morning, everybody. You are in the CNN NEWSROOM. I'm Heidi Collins. Live today from the Time-Warner Center in New York City. See events come into the NEWSROOM live on Monday, August 18th.
Here's what's on the rundown - tropical storm Fay pounding Cuba today, targeting Florida. Cars and people pouring out of the keys.

Several people unaccounted for this morning after a dam breaks in the Grand Canyon.

And a close ally in the U.S. war on terror. A man in charge of a nuclear arsenal. Pakistan after Musharraf, in the NEWSROOM.

Tropical Storm Fay already deadly. This morning it's headed towards Florida and possibly hurricane strength. The storm killed several people on its rampage through the Caribbean. It is now pounding Cuba and plowing towards the Florida Keys.

Residents are boarding and sometimes getting out. Thousands of tourists and resident are scrambling to evacuate the Keys. Forecasters warn Fay could reach hurricane strength by late today. For those who want to leave, this is the time.

We've dispatched CNN crews to the many points of this developing story. Want to go ahead and begin in the Extreme Weather Center with CNN meteorologist Reynolds Wolf.

Hey there, Reynolds.

REYNOLDS WOLF, CNN METEOROLOGIST: Hi, Heidi. You're right.

In terms of extremeness, (INAUDIBLE) to do with parts of Cuba, but not only Cuba, But all across much of the Caribbean this storm has gone through Haiti, the Dominican Republican, back to Jamaica, past the Caymans, and now it's moving over the straits of Florida.

The center of circulation, which is really hard to find, this is not a well-defined storm, is now moving across the strait of Florida. You can just make out that center right here. Just barely seeing it. And, again, not a great deal of symmetry to the storm. The heaviest precipitation now just to the southeast of Miami.

Water temperatures along the keys range anywhere from the mid to even some upper 80's, which is perfect fuel for -- for a storm like this. But the thing about this, this has not formed over wide, open water. It hasn't had days and days of unchecked ocean. It's been island hopping, so to speak. And with it, it is just in a rough shape.

Right now, winds at 60, gusting to 65. The center of that, 99 miles from Key West. So less than 100 miles going to Key West. And the storm, at least the latest we have from the National Hurricane Center, is expected to make its way west-northwest, but only ran 12 miles per hour or so, making its way just north of the Keys into (INAUDIBLE) as we get to 2:00 a.m. on Tuesday with winds of 65 miles an hour.

So we do some strengthening. But 65 miles an hour, you know, again, that is still shy of a hurricane. Expect it to make landfall possibly somewhere south of Tampa, should reach hurricane strength category 1 before it makes landfall. And you will notice it will continue its march northward, not far from Jacksonville, back into the Carolinas, then into the foothills of the Appalachians beginning to Saturday at 2:00 a.m.

Heidi, with this storm system, we can see a lot of changes over the next couple of updates. We have another one that is going to be coming up around 11:00.

COLLINS: OK.

WOLF: And I'm sure that it should be interesting. All of these fascinating.

COLLINS: Yes.

WOLF: We'll bring you the very latest with that. It's a short time away.

COLLINS: All right, Reynolds, thanks for staying on top of that.

WOLF: Any time.

COLLINS: Of course, we will come back to you should it warrant coverage immediately.

Meanwhile, Cuba, taking the full force of Tropical Storm Fay this morning.

CNN's Havana bureau chief Morgan Neill is there. He is joining us now live via broadband.

Good morning to you, Morgan.

MORGAN NEILL, CNN HAVANA BUREAU CHIEF: Good morning, Heidi.

That's right. Tropical Storm Fay has now left the -- center of the storm has now left the north of Cuba after blazing a trail of heavy rains through the center of the island. But Cuba is just the -- the latest stop in a storm that's affected the entire region.

(BEGIN VIDEOTAPE)

NEILL (voice over): Tropical Storm Fay picked up momentum Sunday hitting Cuba's southern coast with gusting winds and heavy rains as it pushed and swirled closer to the island.

Hurricane watches posted along much of Cuba's central and western coast, including Havana, as the storm picked up strength.

Already Fay has left at least five people dead in its wake after battering Haiti and the Dominican Republic. Nearly 12,000 people were evacuated into the Dominican Republic. The power was cut to some 15,000 homes according to local reports.

The target now, the Florida straits. A prediction that could reach hurricane strength as it pushes back over water.

BEN NELSON, FLORIDA STATE METEOROLOGIST: The main threats with Fay as the National Hurricane Center and the state emergency response team diagnoses right now are tornadoes and flooding.

NEILL: Forecasters said the storm could hit the Florida Keys Monday night.

In the Keys, schools are closed, tourists are being urged to leave, and shelters are being opened. The governor has declared a state of emergency are 9,000 Florida National Guard troops are at the ready.

GOV. CHARLIE CRIST (R), FLORIDA: Florida is prepared and we are ready and will be vigilant.

NEILL: Residents rushed to prepare for the incoming storm buying plywood, batteries, generators and candles. In some areas, sold out within hours of stores opening. And out in the Gulf of Mexico, oil companies like Shell are already pulling workers off offshore platforms preparing for Fay's arrival.

Back here in Cuba, the island must now start to deal with the damage.

(END VIDEOTAPE)

NEILL: Now those reports of damage have been relatively light to this point. What we have seen throughout this he storm's path -- first along the south of Cuba then through the island are thousands of people evacuated. But, again, it's still early to have heard from much of the center of the country -- Heidi?

COLLINS: All right, Morgan Neill, live from Havana this morning. Morgan, thanks for that.

Tropical Storm Fay's next stop now likely to be Key West. Joining us by phone is the mayor of Key West, Morgan McPherson.

Mr. Mayor, tell us what you are seeing around you this morning? MAYOR MORGAN MCPHERSON, KEY WEST, FLORIDA: Right now it's a little quiet. We're patiently being persistent in our preparation and we understand that this storm is definitely on its own pace.

COLLINS: What are people saying? I mean, I'm trying to get a sense of how they're feeling in your city. Is there caution? Is there precaution? Or are people just completely getting out of the way of the thing?

MCPHERSON: No, there's a kind of an air of caution and everyone's now starting to batten down the hatches. We've seen everyone taking this thing serious and making sure that they're prepared for whatever she should bring.

COLLINS: And this is something that is not new to you in this area. When you talk about evacuations, what is the plan? What is the first step that you will move towards?

MCPHERSON: The first step is to make sure that those that come to our incredible city in the Florida Key as visitors are out and that their safety is essential. And after that, it's to take care of our special needs and those that have medical evacuations. Then we look at your low-lying areas and mobile homes, making sure that their safety is essential.

COLLINS: All right. You have everything that you need, Mr. Mayor?

MCPHERSON: We do. We have a great governor that's paying attention, the National Guard if we need it. We have an incredible staff that this isn't their first time at the rodeo.

COLLINS: Right, exactly. All right, well, we will stay in touch with you, Mayor Morgan McPherson. Sure do appreciate your time and wish you the best luck, of course, in handling Fay, and her path which could be headed in that direction.

Again, we'll follow it closely.

Meanwhile, missing in the Grand Canyon now more than 20 people still unaccounted for this morning after floodwaters burst through a dam. Rescuers airlifted many others to safety.

Want to get the very latest now from Chris Lawrence in Peach Springs, Arizona this morning.

Hi there, Chris.

CHRIS LAWRENCE, CNN CORRESPONDENT: Good morning, Heidi.

Yes, the emergency crews have just gone into a team briefing trying to get a handle on what the weather is going to be like down in the Canyon as well as mapping out some sort of plan as to how and when they will resume that search and rescue operation.

As of now nearly two dozen people remain unaccounted for. However, that also means that rescue crews have so far safely airlifted about 170 people out of the Grand Canyon. Now, this area down there is home to both an Indian nation and a tourist area.

It only gets about nine inches of rain a year, but a lot of it comes all at once in August. That's what happened Friday, Saturday, rain piling up. The Redland's dam burst first thing Sunday morning and sent a wall of water rushing into the Canyon. Hiker, campers, kayakers, all of them caught in this flood.

Here's what some of them say it was like down there.

COLLINS: Chris Lawrence, can you still hear me OK? I'm just trying to make sure that you -- OK, there you are. When you talk about the American Red Cross, which is, obviously, right behind you there, the people have everything that they need?

LAWRENCE: Again, right here, Heidi, behind me, you've got about two dozen -- a little more than two dozen people spent the night here overnight. We just saw some trucks pull up in the last 20 minutes or so that are going to be providing...

COLLINS: Good.

LAWRENCE: ... breakfast, supplies. Some of these people may be out of their homes for, you know, up to a week, possibly two weeks.

COLLINS: Yes.

LAWRENCE: And they're expecting possibly up to another 100 people to arrive sometime later today.

COLLINS: OK. All right. Very good. Chris Lawrence for us in Peach Springs, Arizona this morning. Thank you, Chris.

To this story now. The president of Pakistan quits. What does it mean for the U.S. war on terror? And what about Pakistan's nuclear weapons?

(COMMERCIAL BREAK)

ANNOUNCER: You're watching CNN NEWSROOM on CNN, the most trusted name in news.

COLLINS: A key U.S. ally in the war on terror resigning under pressure this morning.

Pakistani president, Pervez Musharraf, emotional in a televised statement on his decision to quit rather than face impeachment.

The country's ruling coalition is taking steps to remove Musharraf, but until now, the general who took power in a 1999 coup has stubbornly resisted. Word of his resignation sparking celebrations across Pakistan.

Local media now reporting Musharraf has been granted safe passage out of the country. And new this morning now, Russia says its troops have started withdrawing from Georgia 11 days after they invaded the country. Moscow says it has ordered forces to fall back to a buffer zone and into South Ossetia, the breakaway Georgian region at the heart all of this fighting.

But Georgia says there nor signs such a pullback is actually happening. Earlier in the day, Georgian officials said it looks like Russian forces were moving deeper into Georgia.

According to a European brokered peace plan, both Russia and Georgia are to move forces back to positions held before the fighting broke out.

Conflict in Georgia, political shake-up in Pakistan. What is the U.S. saying and doing now?

Our Zain Verjee is traveling with Secretary of State Condoleezza Rice. She is joining us now on the telephone from Brussels.

So Zain, let's begin with U.S. reaction to situation in Pakistan first.

ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Good morning, Heidi.

The U.S. is saying that they strongly support the democratically elected government in Pakistan. In a statement they issued just a moment ago they say that the call for respect for the democratic and constitutional process in Pakistan, saying it's really important for the fight in the war on terror, and to Pakistan's future.

It goes on to make very clear, Heidi, that Musharraf is a friend and has been a friend to the U.S. calling him one of the world's most committed partners in the war on terror. It says he made a critical choice to join the fight against al Qaeda and the Taliban, and Musharraf has our deep gratitude -- Heidi?

COLLINS: All right. CNN's Zain Verjee will be watching this story. Again, Zain traveling with Condoleezza Rice in Brussels right now.

Zain, thank you for that.

Tropical Storm Fay may hit Florida. It may also hit you at the gas pump. Oil rigs shut down. I'll take a look with Gerri Willis.

(COMMERCIAL BREAK)

COLLINS: Oil prices are on the rise this morning on fears that Tropical Storm Fay could disrupt crude supplies in the Gulf of Mexico.

Gerri Willis is "Minding Your Business" on this.

So Gerri, are these fears legit? GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, I think these fears are somewhat dissipating because of the change direction path of the storm.

But let me tell you a little about what happened this morning. Oil was trading at $114.13. That's $114.13, in Europe, after closing lower Friday in New York here. The fear is, as you said, Tropical Storm Fay could disrupt oil supplies. As you know, that storm inundated Cuba. It's expected to hit Florida today and strengthen to hurricane force.

Now, as a result of all those fears, Royal Dutch Shell evacuated 360 staff members from the Gulf of Mexico in just the past two days.

We spoke with Chevron this morning. They said they are monitoring the situation. They have taken no similar action. They're hoping because the path of the storm has changed that possibly they won't have those problems.

Meanwhile, after this news hit, prices came back down later this morning. Oil currently trading at $113.60 a barrel. That's a little under from Friday.

Settlement prices more good news. AAA reports national average price of gas fell to $3.74. That's $3.74. That's down a penny from the previous day. The current national average is -- $3.74 or 9 percent below the record high of $4.11 of July 11th, if you remember that which was very unpleasant -- Heidi?

COLLINS: Definitely remember that, unfortunately.

All right, Gerri, sure do appreciate it. Thanks so much. And we'll talk with you a little bit later on, too.

WILLIS: Thank you.

COLLINS: For now the Tropical Storm Fay, next stop, likely Key West. Richard Jordan is there. He is a reporter with Miami affiliate WSVN.

Richard, what can you tell us from where you are? How do things look?

RICHARD JORDAN, WSVN REPORTER: Well, you might be able to tell we are already feeling the effects of this storm. We've had wind and rain all morning long and just take a look out on the water. It is getting very choppy.

The tide continues to just get higher and higher as we prepare for a taste of Tropical Storm Fay, because in the upper and middle keys, we're not really expecting to get much of the impact when the storm gets closer. That is going to be to -- for Key West, which is much further south from where we are, about 70 to 80 miles.

Residents all along the Florida Keys say they're used to this kind of stuff and they're not really too concerned about a tropical storm or even a category 1 hurricane. But as they're wake up and getting a taste of what's out here right now they're bound to change their minds.

The winds are extremely strong. The rain is pelting down. Many residents have gotten their basic plans in order. We've seen a lot of homes with shutters. A lot of people out at the grocery store picking up that bottled water, the ice, batteries, all the basics to get through this storm. But many residents say that they're going to stay put.

It's a completely different story for visitors and tourists. They've been ordered to evacuate. Yesterday about 25,000 people got on the only road that leads from the Florida Keys to the mainland and left. Many of them really didn't have an option, because hotels are canceling reservations, and simply just taking people out.

So as the storm gets closer, state officials are reminding people who are decided to stick it out here in the Florida Keys not let their guard down, even if the storm, Fay, does touch land as a tropical storm. She could still have a great impact here.

So right now what they're really asking people to do is pick you up a the debris and garbage that might be littered around, because, as you can tell, as the wind gets stronger, that could become projectiles and really cause some serious damage.

Everyone here really keeping an eye on Fay waiting to see if she will make it to hurricane status and waiting to see how close she will get to the Florida Keys.

Back to you.

COLLINS: All right. Yes, we can certainly notice there, Richard, that the wind is picking up. We'll stay in close contact with you as well.

Richard Jordan for us with WSVN. Thanks, Richard.

Florida's coastline blanketed by warnings and watches this morning. Tropical Storm Fay inching closer and likely to grow stronger along the way.

CNN's Sandra Endo is in Fort Myers on the southwest coast of the state.

Good morning to you, Sandra. Tell us what you're seeing around you? Not as much wind as we saw just moments ago with Richard Jordan.

SANDRA ENDO, CNN CORRESPONDENT: Yes, certainly a different scene here, Heidi. The weather is gorgeous out. People are out and about on the beach, taking their morning stroll, their morning run.

But what's different is that the residents here are taking precautions, bracing themselves for a possible downpour and tourists here are canceling their reservations. We're talking to a lot of hotel operators here who have said they have received numerous cancellations of reservations.

And we've talked to people here along the beach, as well, saying they're going to head out of town earlier before the storm hits. Now certainly Tropical Storm Fay is intensifying and targeting this area of south Florida.

(BEGIN VIDEOTAPE)

ENDO (voice over): Floridians are watching and waiting, preparing for the ever-changing track of Tropical Storm Fay. The governor preemptively declared a state of emergency.

CRIST: My main message today is to remind our fellow Floridians to remain calm. Remain vigilant. Stay in touch with your local authorities and messages through your radio and local television.

Floridians should not focus on the storm track necessarily. They should be aware that impacts can be broader than where the storm track has indicated.

ENDO: With some forecasts predicting Fay will hit the Keys, thousands of people evacuated the area Sunday. Others prepared by protecting their property.

UNIDENTIFIED FEMALE: I think everybody takes this serious, just like, you know, every one, you know. We all have boats, houses. You know? You have to secure them.

ENDO: Predictions of Fay's track are all over the map. So many in Florida are being careful not get blindsided by Mother Nature.

MAYOR CARLOS ALVAREZ, MIAMI-DADE COUNTY: Now is the time to finalize your hurricane and preparedness plan, gather supply, water, canned food, batteries, flashlights, radio and cash, and discuss evacuation plans if you live in a flood zone.

(END VIDEOTAPE)

ENDO: Now there are no mandatory evacuations in this area, but that could all change. You can see some people have shuttered their condominiums right here along the beach front. And this can all change very fluidly, like, as you know, Heidi, because Tropical Storm Fay is very unpredictable, has been proven to be very hard to track.

So the next 12 to 24 hours will be very crucial.

Live on Fort Myers Beach, Florida, I'm Sandra Endo.

Heidi, back to you.

COLLINS: All right. Well, you hit the nail on the head with that one. Certainly.

Sandra Endo, appreciate it. Thank you.

Russia promised to start pulling troops out of Georgia today. Tanks are rolling now, but where are they going? We go live to Moscow in a moment.

(COMMERCIAL BREAK)

COLLINS: We want to take you directly to Senator John McCain on the stage in Orlando talking with the Veterans of Foreign Wars.

Let's listen for a moment.

SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: ... because you've been its protectors. You were there when your country needed you. You shouldered heavy burdens and accepted great risks.

I'm sure many of you will also recall from your experiences in war, as I do from mine, that when you're somewhere on the other side of the world in the service of America, you pay attention to the news from back home. It affects morale, and even during this election season, with sharp differences on the wisdom and success of the surge in Iraq, Americans need to speak as one in praise of the men and women who fight our battles and are serving now with courage and bravery.

(APPLAUSE)

MCCAIN: They're the best among us as you were before them. And I know you'll join me in applauding the courage and skill that will see America through victory.

Though victory in Iraq is finally in sight, a great deal still depends on the decisions and good judgment of the next president. The hard-won gains of our troops hang in the balance. The lasting advantage of a peace and democratic ally in the heart of the Middle East still be squandered by hasty withdrawal and arbitrary timelines.

And this is one of the many problems in the shifting positions of my opponent, Senator Obama. With less than three months to go before the election, a lot of people are just still trying to square Senator Obama's varying positions from the surge in Iraq.

First he opposed the surge and confidently predicted that it would fail. Then he tried to prevent funding for the troops who carried out the surge. Not content to merely predict failure in Iraq, my opponent tried to legislate failure. This was back when supporting America's efforts in Iraq entailed serious political risk. It was a clarifying moment. It was a moment when political self-interest and the national interest parted ways.

For my part, with so much in the balance, my friends, it was an easy call. As I said at the time, I would rather lose an election than lose a war.

(APPLAUSE)

Thanks to the courage and sacrifice of our soldiers, sailors, marine, airmen, and to the brave Iraqi fighters the surge has succeeded. And yet, Senator Obama still cannot quite bring himself to admit his own failure in judgment. Nor has he been willing to heed the guidance of General Petraeus, one of the great leaders in military history, or to listen to our troops on the ground when they say -- as they have said to me on my trips to Iraq: Let us win, just let us win.

(APPLAUSE)

Instead, Senator Obama commits the greatest error of insisting that even in hindsight, he would oppose the surge. Even in retrospect, he would choose the path of retreat and failure for America over the path of success and victory. In short, both candidates in this election pledge to end this war and bring our troops home. The great difference is that I intend to win it first.

(APPLAUSE)

Behind all of these claims and positions by Senator Obama lies the ambition to be president. What's less apparent is the judgment to be commander in chief. And in matters of national security, good judgment will be at a premium in the term of the next president -- as we were all reminded ten days ago by events in the nation of Georgia.

It's been a while since most Americans including most of our leaders and diplomats have viewed Russia as a threat to the peace. But the Russian government's assault on a small democratic neighbor shows why this needs revising. As I have long warned, Russia under the rule of Vladimir Putin is becoming more aggressive toward the now democratic nations that broke free of the old Soviet empire.

Russia, as we know, also holds vast energy wealth. And this heavy influence in the oil and gas market has become a political weapon that Russia is clearly prepared to use. Georgia stands at a strategic crossroads in the Caucasus. The Baku-Tbilisi-Ceyhan pipeline, which brings oil from the Caspian to points west, traverses Georgia. And if that pipeline were destroyed or controlled by Russia, global energy supplies would be even more vulnerable to Russian influence with serious consequences on the world energy market.

For some time now, I have been making the case for a dramatic acceleration of domestic energy production. With high prices and growing demand for oil and gas, Americans cannot remain dependent upon others for the most vital of commodities. We should drill offshore and we should drill now.

(APPLAUSE)

And Congress should come off their five-week vacation and go to work for us.

(APPLAUSE)

In case you hadn't notice, they never miss a recess or a pay raise.

Now, we are reminded that energy policy is also a matter of the highest priority not only for our economy, but for our nation's security. We can't keep sending $700 billion a year to countries that don't like us very much. And some of that money ends up in the hands of terrorist organizations has got to stop.

(APPLAUSE)

Disruptions of supply abroad can suddenly raise energy prices, inflicting great harm on our economy and on America workers. And in the term of the next president, skillful handling of such a crisis could be the difference between temporary hardship and far-reaching disaster.

When Russia first invaded Georgia, some people may have wondered why events in this part of the world should be any concern of ours. After all, Georgia may seem a small, remote and obscure place. But many of you served in places that once seemed remote and obscure. And the veterans of foreign wars know better than anyone how inattention to small crises can invite much larger ones.

There are many reasons why the Russian invasion of Georgia is of grave concern to America and to our allies. Above all, Georgia is a struggling democracy where Soviet tyranny is still fresh in memory. There are reports now of Georgian villages being razed, civilians being rounded up, and innocent civilians shot.

We have seen such things before, as in the Balkans and in earlier periods of European history, and now we must ensure that events in Georgia do not unfold into a tragedy of much greater scale. When young democracies are threatened or attacked, and innocent civilians are targeted, they should be able to count on the free world for support and solidarity.

If I am elected president, they will have that support. I guarantee you that.

(APPLAUSE)

And in cooperation with our friends and allies in Europe, we will make it clear to Russia's rulers that acts of violence and intimidation come at a heavy cost. There will be no place among G-8 nations, or in the WTO, for a modern Russia that acts at times like the old Soviet Union. The Cold War is over, the Soviet empire is gone, and neither one is missed. Least of all is that empire missed by the once captive nations of Estonia, Latvia, Lithuania, Poland, Ukraine, and Georgia. These brave young democracies have joined the free world, and they are not going back.

(APPLAUSE)

Through decades of struggle, free nations prevailed over tyranny in large measure because of the sacrifices of the men and women of the United States armed forces. And it will fall to the next commander in chief to make good on the obligation our government accepts every time any man or woman enters the military, and again when they receive their DD 214.

Those we depend on as troops should know, when they become veterans, they can depend on us. Honoring this obligation will require leadership. I'm ready to provide that. And I pledge to you --

(APPLAUSE)

And I pledge to you that as president I will lead from the front to reform our VA system and make sure that veterans receive the respect and the care that they have earned.

(APPLAUSE)

The Walter Reed scandal was a disgrace unworthy of this nation -- and I intend to make sure that nothing like it is ever repeated. There are other problems as well that have not received as much media attention. And my administration will do the hard and necessary work of fixing them, even when the press and the public are not watching.

Reform begins with appointing a Secretary of Veterans Affairs who is a leader of the highest caliber, and who listens to veterans and veterans' service organizations. My VA secretary must be a forceful advocate for veterans and forthright advisor to me, so we can make the right choices about budgeting, health care, and other veterans' benefit issues. He or she will also need to be a high-energy leader, too, because we'll have a lot of work to do in improving service to veterans.

Veterans must be treated fairly and as expeditiously as they seek compensation for disability or illness. We owe them compassion and hands-on care in their transition to civilian life. We owe them training, rehabilitation, and education. We owe their families, parents and caregivers our concern and our support. Veterans should never be deprived of quality medical care and mental health care coverage for illness or injury incurred as a result of their service to our country. Never should they be denied.

(APPLAUSE)

As president, I will do all that is in my power to ensure that those who serve today, and those who have served in the past, have access to the highest quality health, mental health and rehabilitative care in the world. And I will not accept a situation in which veterans are denied access to care on account of travel distances, backlogs of appointments, and years of pending disability evaluation and claims. We cannot let that happen. It will not happen when I'm president of the United States. And we will fix it.

(APPLAUSE)

We should no longer tolerate requiring veterans to make an appointment to stand in line for a ticket to stand in line for another. I'm not here to tell you that there is a cost that is too high to be paid in the care of our nation's veterans. I will make sure that Congress funds the VA health care budget in a sufficient, timely, and predictable manner. But I will say that every increase in funding must be matched by increases in accountability, accountability both at the VA and in Congress.

(APPLAUSE)

And this requires an end to certain practices and abuses that serve neither our veterans, our country, nor the reputation of Congress itself. Exactly because funding VA programs command bipartisan support, some in the Congress like to attach unrelated appropriations and earmarks to VA bills. The result is to mix vital national priorities with wasteful and often worthless political pork.

Earmarks show up in bills of every kind, and not just VA bills. That's how we end up budgeting hundreds of millions of dollars for bridges to nowhere, or lesser sums for Woodstock museums and the like. When the earmark for a million bucks to fund a Woodstock museum didn't come through, I don't imagine that many veterans had to change their vacation plans.

(Laughter)

And the principle here is simple: Public money should serve the public good. If it's me sitting in the Oval Office, at the Resolute desk, those wasteful spending bills are going the way of all earmarks, straight back to the Congress with a veto. You'll know their names. I will make them famous. We'll stop this earmark, pork barrel spending and we'll make it clear --

(APPLAUSE)

And we will make it clear that no earmark bill will be signed into law, that will save many billions of dollars that can be applied to essential priorities, and above all to the care of our veterans. But reform doesn't end there. We must also modernize our disability system to make sure that eligible service members receive benefits quickly, based on clear, predictable, and fair standards. And we must address the problems of capacity and access within our VA health care system.

While this will involve a wide range of initiatives, I believe there is a simple and direct reform that we should make right away.

My administration will create a Veterans' Care Access Card to be used by veterans with illness or injury incurred during their military service, and by those with lower incomes. This card will provide those without timely access to VA facilities the option of using high- quality health-care providers near their homes.

For many veterans, the closest VA facility isn't close enough. And many of their local providers are already familiar with the most common needs of veterans. Often, all that prevents them from receiving local care is a system for sharing medical records among VA, DOD, and civilian hospitals and doctors. My reform will improve care, reduce risks, and broaden access at the same time.

Never again should a veteran stand in line, just stand in line to get an appointment, to get an appointment. That should never happen again.

(APPLAUSE)

Now, let me make it clear. This card is not intended to either replace the VA or privatize veterans' health care, as some have wrongly charged. I believe the VA should always be there to provide top-quality care for our veterans. And I believe the VA should continue to provide broad-spectrum health care to eligible veterans, in addition to specialized care in areas such as spinal injuries, prosthetics, and blindness -- services in which the VA sets the standard in medical care.

Even so, there are veterans eligible for care who are not currently able to receive it, on account of distance, wait times, or the absence of certain specialties. And for this group, the new card I propose will offer better alternatives, to provide the benefits they have earned.

Reform must also recognize that greater care is needed for certain types of injuries. In the Senate, I co-authored the Wounded Warrior Act, which was the first major legislative initiative to address post-traumatic stress disorder and traumatic brain injury. As president, I will build on this legislation to improve screening and treatment for these severe injuries suffered by many in Iraq and Afghanistan.

The VA must also broaden its care for the women who are entering the armed forces in greater numbers than ever. The growing ranks of women in uniform have left the VA lagging behind in the services it provides. And here the Veterans Care Access Card will prove especially valuable, offering women medical options while the VA improves capacity and expands services.

These are among the elements of my reform agenda for the VA system. And today, as other occasions, I have stated in the plainest, most straightforward terms that the Veterans Health Care Access Card will expand existing benefits.

I don't expect this to deter the Obama campaign from misrepresenting --

(END VIDEO CLIP)

HEIDI COLLINS, CNN ANCHOR: All right. We've been listening in now for quite some time to Senator John McCain. He is speaking at the National Convention for Veterans of Foreign Wars, all taking place in Orlando, Florida there.

Obviously, talking about a number of issues facing veterans and men and women active in the service right now. Also want to let you know, of course, equal time here at CNN. Senator Barack Obama will be talking as well today. It comes up in the 12:00 hour. He's going to be in Albuquerque, New Mexico. We are told he'll be talking about the economy.

So the political convention is just days away now, and so are the big reveals. We are on VP watch this morning.

(COMMERCIAL BREAK)

COLLINS: If you're life is stored on a laptop protecting your privacy online is key in today's "Right on Your Money." Christine Romans had some tips.

(BEGIN VIDEOTAPE)

CHRISTINE ROMANS, CNN CORRESPONDENT (voice-over): With the click of a mouse, you can view account information, pay bills and research investments. But be aware you may not be the only one screening your online information.

MANDY WALKER, SR. PROJECT EDITOR, "CONSUMER REPORTS:" If your computer is stolen or a hacker breaks in on the Internet, they get the whole list of all your passwords so they can get into all your accounts.

ROMANS: But here's how to protect your identity online. Don't reply to or click on any link in an e-mail that asks for your credit card or bank account information or any other private information, even if the e-mail looks like it came from your bank.

WALKER: Of course, this is usually phishing schemes done this way. So a cyber thief could be using your account number to get your passwords, to steal your identity or empty all your accounts.

ROMANS: Don't store passwords or logon information on your computer.

WALKER: It's certainly tempting because you probably have a different password for 19, 20 different accounts. But we take note, don't click yes when they ask do you want to remember your online information and delete any that you've already stored that way, again so they won't get hacked into.

ROMANS: One way to prevent thieves from opening new accounts in your name put a freeze on your credit files.

WALKER: It can be a bit of a pain if you're applying for a new loan because you have to either give the creditor a PIN number or you have to unlock it somehow to give them access. But it will stop identity thieves from opening new accounts which can be key if you're suspecting you're going to be a victim or you have been a victim of identity theft.

ROMANS: And that's this week's "Right on Your Money."

(END VIDEOTAPE)

COLLINS: The political conventions just days away, so are the big reveals. We're on VP watch this morning.

(COMMERCIAL BREAK)

COLLINS: The presidential candidates on the road. John McCain at the national convention for VFW in Orlando, Florida, today. Barack Obama holding a town hall meeting in Albuquerque, New Mexico. And with the Democratic convention exactly one week away, the time is running out for Obama to choose a running mate.

So, White House correspondent Ed Henry is on VP watch.

And I'm sure you know, a lot of us this morning -- Al Gore may speak to the Democratic National Convention next Thursday right before Barack Obama. So what does that mean?

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, two Democratic officials telling CNN this morning that there are talks going on right now between the former vice president and the Obama campaign about having him speak on Thursday night.

That would be right before Barack Obama does his big acceptance and this would happen, I'm told, at INVESCO Field, before the 75,000 people. That's where Gore would speak. But I want to be clear, it's not a done deal yet. These two officials saying that Al Gore has been somewhat hesitant about wanting to go to the Democratic convention. He kind of doesn't want to interfere with Barack Obama. He realizes the party has gone in another direction. He doesn't want to get in the middle of the Obama-Clinton stuff that is going on there.

So it's still in talks, but it's interesting. It would be very interesting to see Al Gore speaking at such a prominent role. Of course, the former President Bill Clinton speaking the night before. It would be very interesting to see Al Gore on Thursday night.

Heidi?

COLLINS: Yes. It will be very interesting. How sooner do you think we can expect an Obama announcement?

HENRY: Well, the talk right now among Democratic officials is they think it will be the latter part of this week so that Barack Obama could get some momentum on the way into his convention in Denver.

The name we keep hearing as you noted a moment ago is Joe Biden. And what is interesting is that this is not just about the Democrats. This does not happen in a vacuum. We just heard from John McCain a few moments ago really ripping in to Barack Obama on foreign policy before the VFW convention saying he's not ready to be commander in chief. That's really why with the Republican talking points there, why we've seen Joe Biden in part soared so much.

He's in Georgia right now. He met with President Saakashvili as you just saw a moment ago. And that resume of foreign policy experience seems to be a hole for Barack Obama and that's why Joe Biden has sort of soared. But still, Evan Bayh, the senator, Governor Tim Kaine of Virginia -- a lot of other names out there. This is not a done deal yet, obviously.

And the bottom line is that while on paper it might makes sense for a lot of people on the outside to say Joe Biden should be the guy, the bottom line, this is going to be the candidate himself making a gut check in the final days in deciding who he's comfortable with.

Heidi? COLLINS: Yes. And then there are some people who will tell you, that you know Joe Biden could actually steal some of the spotlight away from Obama. And that that might be a risk for that, too.

HENRY: You know, it's a hard time staying on message for sure.

COLLINS: Yes. Well, we will watch all of it, won't we? Ed Henry, sure do appreciate it. Thank you.

HENRY: Thank you.