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American Morning

Israel Ready for Weeks of Action; Obama's Mideast Test; GMAC Gets a Lifeline; Dinged Up Dignity Comes Ashore

Aired December 30, 2008 - 07:00   ET

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


JOHN ROBERTS, CNN ANCHOR: Just coming up to the top of the hour now. We're tracking breaking news for you this morning. Fighting raging between Israel and Hamas. New airstrikes into Gaza have reportedly flattened at least three buildings at Hamas's headquarters. Palestinian officials now say more than 375 people are dead in Gaza. CNN's Paula Hancocks joins us live from along the Israel-Gaza border in just a moment.
In Baghdad, the trial for the journalist who threw his shoes at President Bush has been postponed. The court official says the case is being reviewed by a higher court before that trial proceeds. Proceedings were suppose to begin tomorrow.

And rescuers near Fernie in British Columbia, Canada are carefully assessing the risk of another avalanche this morning. That's before they decide whether to search for one man still missing after a pair of avalanches struck on Sunday. The man is presumed dead. The bodies of seven others who were snowmobiling with him have been recovered. Three members of that same snowmobiling party did manage to escape.

Returning to our breaking news out of the Middle East, Israel's deputy defense minister says his country is ready for a "long weeks of action." Palestinian medical sources saying this morning that the death toll in Gaza now over 375. Four Israelis have died since Saturday, including one soldier. Israeli air strikes have decimated three buildings at a Hamas government compound. Hamas returning fire with rockets again today.

Israeli tanks remain in the outskirts of Gaza and 2,000 Israeli army reservists have been activated fueling speculation of a pending ground invasion.

CNN is on the front lines of the conflict. Paula Hancocks joins us now. She is live along the Israel-Gaza border.

And, Paula, I'm interested in what's being said there in terms of strategy as to whether or not there would be a ground invasion of Gaza. There are some analysts who say that would simply into Hamas's hands because it has been stockpiling weapons there for months.

PAULA HANCOCKS, CNN CORRESPONDENT: Well, certainly, John, we're seeing that the number of Israeli air strikes on the Hamas installation in Gaza are not making a difference when it comes to the rocket and mortar fire. The rockets and mortars are still falling in Israel. In fact, a couple just fell near here about a half hour ago, which is why we're suited up.

But certainly, at this point, it doesn't seem that Israel has managed to dent the ability of the rocket launches. So what we've been seeing as we've been traveling up and down the border with Gaza as the Israeli military keeps moving us back from the border, we have to try and find another spot where they won't move us back.

We're seeing a lot of tank build up. We're seeing just a bit further north from here many tanks. Probably about 30 tanks armored personnel carriers and also bulldozers, all lined up in a row all facing in the direction of Gaza.

Now when we got close to them, the soldiers didn't want us to film so we had to pull back a little bit. But the fact is that it does physically look as though all the preparations have been made. The plan is set. The soldiers were just cleaning their guns, cleaning their military equipment, waiting for the order.

Now this order that the Israeli government says it's not afraid to give. But as you say, they were worried that this ground operation will play into the hands of Hamas. Israel says that they are launching rockets from residential compounds, from residential areas, from houses even. So how is a tank going to try to target that kind of target without actually taking in civilian casualties -- John.

ROBERTS: Recalling back to the summer of 2006 and the conflict between Israel and Hezbollah, in the closing days of that operation, as we recall, there was a large ground invasion into southern Lebanon, which really only resulted in the deaths of several Israeli soldiers and didn't gain them a whole lot of ground against Hezbollah. Do memories of that still very close in the Israeli people's minds in terms of whether or not there is a ground invasion of Gaza?

HANCOCKS: Absolutely. No one here has forgotten about that. Everyday, there's a commentary in the newspapers comparing it to Lebanon, comparing the strategy, should the ground operation go in. Certainly it was very unpopular during the Lebanon war, as you know.

But this is an issue for the Israeli defense minister. He knows that it won't be popular in Israel to send the ground forces in. Israel is behind its military, behind its government if it will stop the rocket fire.

But the fact is if there is a ground operation, that could well be Israeli soldier casualties. And Israel has a military service. Everyone in Israel has either been in the military, has a child in the military or a child who's going into the military. So Israel is very much involved in whether or not there is a ground operation.

At this point, the air strikes, I should mention, there's been a couple in the past hour. To us, it appears as though they're quieting down somewhat since yesterday morning -- John.

ROBERTS: All right. Paula Hancocks for us along the border between Israel and Gaza this morning. Paula, thanks very much. We'll check back with you again soon. CHRISTINE ROMANS, CNN CO-HOST: All right. This morning as Gaza's hospitals struggle to cope with the injured, volunteers trying to deliver medical aid were turned back after their boat, Dignity, collided with an Israeli warship. These are live pictures here of that boat, the "Dignity" right there.

Israel says the boat was attempting to defy the blockade of Gaza. Former Georgia Congresswoman Cynthia McKinney and CNN's Karl Penhaul were aboard the "Dignity" at the time of the accident.

(BEGIN VIDEO CLIP)

VOICE OF: KARL PENHAUL, CNN CORRESPONDENT: The boat though while still in international waters, has been rammed by Israeli patrol boats. The boat, our vessel, has been damaged. There's been some damage to a roof section and to glass windows around the steering area and the captain says that the vessel is taking on a small amount of water.

(END VIDEO CLIP)

ROMANS: The ship is now heading to Lebanon. Israel says the collision was an accident.

The White House is calling for Hamas to stop firing rockets into Israel, saying the group is showing its true colors as a terrorist organization. In three weeks, the new Obama administration will inherit a crisis that no U.S. president has been able to permanently solve.

Jim Acosta is following that side of the story this morning. He's live in Washington.

Hi, Jim.

JIM ACOSTA, CNN CORRESPONDENT: Good morning, Christine.

Just three weeks and counting until the inauguration and the turmoil in the Middle East only adds to the number crisis awaiting Barack Obama's arrival at the White House.

(BEGIN VIDEOTAPE)

ACOSTA (voice-over): The prospect of full-blown war between Israel and the Palestinians could hardly come at a worse time for Barack Obama. With wars in Iraq and Afghanistan and tensions between India and Pakistan, not to mention the nation's financial crisis, Mr. Obama's plate is filling up faster than most incoming presidents have ever seen.

LARRY SABATO, UNIVERSITY OF VIRGINIA: Well, there are a few more biblical plagues that could occur but not much else. It's a good thing he named his team early because they're going to need everyday and every hour before January 20th to get ready.

ACOSTA: And Middle East experts say the crisis in Gaza could have ripple effects, more suicide bombers, more radicalism in the region.

STEVEN COOK, COUNCIL ON FOREIGN RELATIONS: It is going to be higher on the agenda than they had previously thought. You're quite right.

BARACK OBAMA (D), PRESIDENT-ELECT: I'm here on this trip to reaffirm the special relationship between Israel and the United States.

ACOSTA: During the campaign, then Senator Obama got personal when he stood firm on Israel's right to self-defense.

OBAMA: If somebody was sending rockets into my house where my two daughters sleep at night, I'm going to do everything in my power to stop that. And I would expect Israelis to do the same thing.

ACOSTA: Israeli leaders haven't forgotten it.

EHUD BARAK, ISRAELI DEFENSE MINISTER (through translator): He said if someone were to fire a missile on my house while my two young daughters are sleeping, I would do everything I could to stop him.

COOK: It's clear that the Israelis have political cover from the Bush administration, and what they're essentially doing is putting the incoming administration on notice that they've taken note of what the president-elect has said.

ACOSTA: And the next administration may not offer much of a change from President Bush's policy on Hamas. Incoming secretary of state, Hillary Clinton, took a hard line position on Hamas before the Israeli lobbying group, AIPAC, during the campaign.

SEN. HILLARY CLINTON (D), SECRETARY OF STATE-DESIGNATE: Until Hamas renounces terrorism and recognizes Israel, negotiating with Hamas is unacceptable for the United States.

(END VIDEOTAPE)

ACOSTA: But at the moment, Mr. Obama and his team are saying little about the crisis. It's a low profile approach that will only work for three more weeks.

And, John, we saw early in this transition period, Barack Obama keeping a low profile during the economic meltdown. We saw members of Congress saying he had to get more involved. It will be interesting to see if that happens once again here with this crisis, John.

ROBERTS: It will. Jim Acosta this morning. Jim, thanks so much.

In fact, many people who voted for Barack Obama say he can't afford to wait on the sidelines. And the world is waiting for clues to see how he will deal with the Middle East over the next four years.

I-Reporter WJ O'Reilly (ph), a teacher from the New York City area sent in his take. (BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I believe that the time will come, I think it will be sooner, rather than later, when there will be an official statement made, which will give us an indication of what his diplomatic priorities will be, and the manner by which he will attempt to defuse these kinds of situations during his term of office as president.

(END VIDEO CLIP)

ROBERTS: And as always, we invite you to share your views at iReport.com.

ROMANS: A cruise ship docks with one less passenger. The FBI wants to know -- now knows that one woman went overboard, but they don't know why. The latest on a high seas mystery still ahead.

Sarah Palin, hockey grandma. Her daughter, Bristol, reportedly giving birth to a boy. What's next for the governor and her family -- her growing family?

It's nine minutes after the hour.

(COMMERCIAL BREAK)

ROMANS: Everyone knows about New Year's Eve in Times Square, massive crowds, the giant ball drop. That's hardly unusual. How about celebrating with a giant piece of baloney?

The people who took a bite (ph) have put together a list of the most quirky places to bring in the New Year and one sight away than watching a giant slab of B-O-L-O-G-N-A fall to earth in Lebanon, Pennsylvania. And if process meat isn't your thing, how about an enormous nut?

In Raleigh, North Carolina, they count down to the New Year by dropping a 1,200 pound acorn? Or maybe you prefer a sausage party. Every year in Elmore, Ohio, they drop an 18-foot long sausage.

And over in Clinton, Ohio, they celebrate with what else? A 600- pound fiberglass walleye. Of course, no matter where you're going to be on New Year's Eve, you got to watch CNN. Anderson Cooper teams up with Kathy Griffin to count us down to 2009 from Times Square. It all starts at 11:00 p.m. on New Year's Eve. And it's going to be cold.

ROBERTS: Yes, it could be. I love that walleye drop. Reminds me of that Kidd Rock song, you know, catching walleye off the docks, watching the waves roll off the rocks.

ROMANS: Yes.

ROBERTS: You're a walleye fisherman, right?

ROMANS: I am, I am. My brother is a musky fisherman. Musky, musky takes a walleye fishing to a new level. ROBERTS: Honey, where's that musk perfume?

(LAUGHTER)

ROBERTS: Hey, the federal government is making another move to prop up the country's crumbling auto industry, giving $5 billion to GMAC in exchange for preferred stocks and equity shares.

Stephanie Elam "Minding Your Business" this morning. I remember when I was like 18, 20 years old, I got my first car loan from GMAC.

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: GMAC.

ROBERTS: They say it looked like they had plenty of money back then.

ROMANS: I know they're giving car loans for us.

ELAM: Right. They're the majority. They do the most of the financing for GM. That's why this is such a big deal and seen as a big necessity to keep GMAC alive in order to help out GM.

So let me break down what's going to happen here. We've got two parts to this deal. It starts off with the treasury just injecting $5 billion right into GMAC. That's the first part of it.

The second part is going to involve $1 billion being lent to GM so that it can invest in its financing arm here. They'll in return get a stake and the treasury will get a stake in GMAC, so that if the company comes back, then they will take some gains from that obviously. But the whole idea is to get lending jump starting again, get that going again.

Obviously there are other strings attached to this. Executive compensation will be watched. There will be no packages for people leaving the company who are executives. Bonuses will be reined in and they have more conditions than some of the banks.

ROMANS: Oh.

ELAM: I know no one's really crying for them Argentina. Not at all.

ROBERTS: What did you just say again today?

ROMANS: I'm crying in my beer...

ROBERTS: Crying in your beer.

ROMANS: ... for all the people who are not getting their big bonuses.

ROBERTS: You're in your what? Your third one? No?

ELAM: Starting off early. And you know, the other thing here, if you remember last week, GMAC did say that they want to become a bank holding company. They got that OK for this to happen. But for it to go forward, they need money so that's part of the reason why this money has to come out.

Of course, the treasury is now above that $350 billion mark they were supposed to allocate just this year then leave another $350 billion for next year. But still, we'll have to see what happens with that. Of course, I don't know how I was able to get through that seriously since you talked about a dropping sausage right before me.

ROMANS: Hey, and a big fiberglass walleye. Let's be honest.

ELAM: Yes. And an acorn.

ROBERTS: Not to mention the acorn.

ROMANS: Nothing says New Year's Eve like a fiberglass walleye.

ROBERTS: Well, how about this? It's a boy. Governor Sarah Palin's 18-year-old daughter has reportedly given birth. "People" magazine said she had a healthy seven pound, four ounce baby boy on Sunday in Alaska named Tripp Easton Mitchell Johnston. He's Governor Palin's first grandchild. His dad, Levi Johnston, said he plans to marry Bristol next year.

Sixteen and a half minutes now after the hour.

ROMANS: A holiday cruise mystery.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It was crazy. I mean, I'm sitting in my room and I see CNN come on and we're on the news.

(END VIDEO CLIP)

ROMANS: A woman goes overboard on Christmas night. What was caught on surveillance and what her family is saying now.

You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: Eighteen minutes now after the hour, new video just in to CNN of the SS Dignity docking in Tyre in southern Lebanon after colliding with an Israeli warship earlier in the day. Volunteers onboard the boat, including former Congresswoman Cynthia McKinney, were trying to deliver medical aid to Gaza but Israel says the boat was attempting to defy a blockade and turned the ship back.

There was some damage to the super structure of the boat. Apparently it was taking on a little bit of water so they ran for Tyre, which is that southern port city in Lebanon. In addition to former Georgia congresswoman and former presidential candidate, Cynthia McKinney, being on board, CNN's own Karl Penhaul was also on the Dignity. He joins us now live on the phone.

Karl, I take it everybody on board is OK. What exactly happened out there in the Mediterranean?

Sounds like we're having some problems here with Karl. Sometimes there's a little bit of delay.

Karl, it's John Roberts. Can you hear me?

KARL PENHAUL, CNN CORRESPONDENT: Yes. There's a lot of confusion going on here. And as you can imagine, with this confusion, one can barely hear you. But I'll sum up what happened, in fact.

We're now limping into port in the city of Tyre in Lebanon, at this after at night time hours. While we're out in the Mediterranean, heavy seas, it was the dark of night and Israeli patrol boats approach the Dignity as it made its way through international waters towards Gaza.

While the boat was still in international waters, Israeli patrol boats shot at the Dignity for the better part of a half hour and then after that without any warning, the Israeli -- one Israeli patrol boat rammed the front section of the Dignity. That caused part of the roof to peel back. Windows were shattered and there was also a hole in the hull and the boat began taking on some water.

The captain of the vessel put out a mayday signal as the only people in the area at the time though were the Israeli boats. Now, there was no trial communication from the Israeli patrol boat to the crew of the Dignity, but after the ramming into them, the patrol boat sent a signal accusing the Dignity of being involved in terrorist activities and said if it could not turn back from its current course, that it would open fire on the Dignity.

ROBERTS: Karl, I know you said it's difficult for you to hear me and I hope you can now. Some reports that I've read in the Israeli press suggest that the Israeli warship accidentally hit the Dignity. The reports are that the Dignity was trying to outmaneuver the ship and the two collided. What can you tell me about the veracity of those reports and also where was the Dignity trying to dock in the Gaza strip to deliver those medical supplies?

PENHAUL: The Dignity was headed for dock when the incident took place. It was very clearly in international waters. The crew and members of the 3,000 movement reject any suggestion that this was accidental. And certainly from my vantage point, I find it very hard to believe that this was an accident because those patrol boats are very sophisticated, very maneuverable, very fast and they've been shattering the Dignity on all sides front and back and from side to side for the previous half an hour.

And in words of the captain, the Dignity was lit up like a Christmas tree. All its lights were on. And at the same time, at least one of the Israeli patrol boats had saw lights saying the Dignity" at all times. So it's difficult to see at what point those Israeli patrol boats really didn't know where the Dignity was and simply slammed into it.

For all intents and purposes, from where we were sitting, it certainly looked like this was an intentional ramming incident with no prior warnings, an incident that took place in international waters.

ROBERTS: Karl, as we mentioned, the Dignity was trying to ferry medical supplies into Gaza. How great is the need from your vantage point, your understanding of the situation for those medical supplies to get into Gaza city?

PENHAUL: Now from what we've seen from the repeated air strikes in Gaza, any medical aid at this stage is critical. And not only is the Dignity trying to ferry in three tons of medical aid, but we have a surgeon on board. We also have members of the Cypriot Parliament. It has a children's doctor from the London's Great Ormond Street onboard. We have other doctors onboard.

These are clearly qualified medical personnel and with much needed aid at a time when the humanitarian plight of the Gaza people is extreme in the wake of these successive Israeli air strikes.

ROBERTS: Karl, taking a look at the damage to the superstructure there on the bridge of the Dignity, it's not going anywhere for a while. Is there anybody else there on the port city of Tyre who's willing to take up the charge to go back out there on the seas and try to get those medical supplies in, or is the word there now that it's just too dangerous with those Israeli patrol boats running around? And as you have described, it would appear all too ready to challenge any vessels that come into the area.

PENHAUL: It is obviously a very dangerous situation. With this action, the Israelis have clearly demonstrated that they will physically try and stop any vessel trying to get through territorial waters into Gaza and they've also shown through that incident that they're prepared to try and stop those vessels heading towards Gaza, even though they are in international waters.

These boats are not equipped to go toe-to-toe with the Israeli military. This was not a military effort by the Free Gaza Movement. It is a movement in solidarity with the Gazan people.

They describe themselves -- they describe themselves as the solidarity movement. They say we are not an aide organization. This is not a charity.

Yes, it was a non-violent political protest. So nevertheless, they didn't expect it to end with an Israeli patrol boat ramming the front section of their boat. And according to the captain onboard, if the construction of this vessel had been different, then ending would have been dramatically different.

As I say, minutes after the Dignity was rammed, the captain put out a mayday call and members of the crew came to the section where the passengers were treated and equipped us with life jackets and said they were about to launch the life raft.

It came that close to us all deploying into the life raft. But when the captain made a quick check, he realized that he could manage to pump the water out of the vessel without us having to abandon ship in what would have been a very icy, icy trip into the Mediterranean. ROBERTS: Karl, we're obviously glad that it came out the way it did, but an incredibly dangerous situation there. The apparent ramming of this 66-foot pleasure craft, the Dignity, by an Israeli warship.

Karl Penhaul onboard at the time along with former Georgia congresswoman and presidential candidate Cynthia McKinney. And as Karl said earlier, the Israeli warship issued a warning after it struck the Dignity, that if the ship -- if the boat did not turn around and head back into Lebanese waters, that it would open fire on it. So obviously a very, very dangerous situation out there in international waters, as Karl was pointing out, off of the coast of Israel.

We're going to continue following the breaking news out of Gaza for you this morning. Air strikes, rocket strikes between Hamas and Israel show no signs of ending. How much worse can it get and what does it mean for an Obama White House?

And two former Bush advisers speak out about what lost their boss his political clout. We'll tell you who said what.

(COMMERCIAL BREAK)

ROMANS: It's 29 minutes here after the hour.

Here are the morning's top stories. While bombs rain down in Gaza, protests and demonstrations over the attacks are planned today all across America from 10:00 a.m. in Minneapolis to 8:00 p.m. in Tacoma, Washington. Anti-war rallies are scheduled for city after American city today.

And what's worse than acres of sludge in your yard? How about toxic water? Water samples tested near the massive spill in eastern Tennessee are showing high levels of arsenic. State and federal officials caution residents who use private wells or springs to stop drinking the water.

And they call it the final nail in the coffin for George Bush. That's what two former aides now call Hurricane Katrina. In the February issue of "Vanity Fair," the former adviser said the president's handling of the aftermath of the hurricane knocked the bully pulpit out from under the president.

ROBERTS: Now updating you now on our breaking news in Gaza this morning, more Israeli air strikes into Gaza targeting Hamas's headquarters. Witnesses say at least three buildings were destroyed. Palestinian sources say more than 375 people are dead in the fighting, and Israel's deputy defense minister says his country is ready for "long weeks of action."

So with Hamas rockets still flying into Israel and Israeli tanks lining the border with Gaza, how far can this go? Joining me now is Daniel Levy. He is the director of the New America Foundations Middle East Initiative. He is a former advisor to then Prime Minister Ehud Barak. Let me get your take on this, Daniel. What do you think of this whole operation? What's your opinion of what's going on over there in Israel?

DANIEL LEVY, NEW AMERICA FOUNDATIONS MIDDLE EAST INITIATIVE: The first thing to say, it was of course avoidable. There was a six month ceasefire, not one Israeli casualty, it was drawing to a close, then you had domestic politics playing into this, Israeli elections, Palestinian division and you had the anger on both sides. Rockets coming into Israel and a blockade being maintained on Gaza. And what you also and you still have is a very limp-wristed international effort then to continue the ceasefire but now to get a de-escalation.

Unfortunately, this can get much worse, maybe a ground invasion, even if that doesn't happen and if that's a diversionary tactic, just continuing what we have today, over 350 dead in Gaza, over 50 civilians, terrible humanitarian situation, rockets in Israeli casualties and I think this is what matters most here perhaps, and a very inflamed situation in the region. A lot of anger, a lot of real worry of what's happening in Gaza. And part of that anger is at America not doing anything to stop it.

ROBERTS: Let me ask you, let me back up to what you said at the beginning. How is this avoidable? Because Hamas says that the six months of the ceasefire didn't gain anything so there was no reason to continue it. Israel says rocket attacks continued even during the ceasefire and then literally the day after the ceasefire ended, 60 rockets were fired into Israel.

How is this avoidable?

LEVY: First of all, there's the long term issues, John, which while we focus on the day-to-day, one must also remember those. There's an unresolved conflict here between Israelis and Palestinians. We don't have a Palestinian state Gaza was withdrawn from but that's only seven percent of Palestinian territory. All that is still going on.

But the immediate way this could have been avoided, I think, if people had worked harder to create a greater incentive on both sides to allow life to breathe and be more normal in the Gaza strip by easing the blockade significantly and therefore creating more of an incentive to stop the rockets, plus more pressure on Hamas.

It's a real problem, John, when, fine, America doesn't talk to Hamas but you also have America discouraging others from talking to Hamas. Get the Europeans, get other Arabs involved. Egypt alone cannot do this. So we need more avenues into discussion with the Hamas leadership.

ROBERTS: But as you know, Daniel, the worry from the Israel side was that if they were to ease the blockade, if they were to open up the border crossings, Hamas might try to send suicide bombers into Israel to do damage there. And so it really was vicious circle. They kept the siege on fearful of that. the siege fermented more dissent, more rocket attacks. So I'm not quite sure how you make the calculation of easing the blockade could have potentially made things better.

Doesn't Hamas basically need to change its views?

LEVY: Well, like I say, the big picture is that this conflict needs to be resolved. That's about what Israel does and that's about what the Palestinian side does and Hamas. The blockade of course prevents everything going in and out.

There are ways of allowing stuff in whether through Israel or through Egypt without running the risk of having suicide bombers come out. We don't know when, how, where Hamas will respond next. I think what you need now is not only an international effort but de- escalation, which is urgent in the region. The reason, you know, people may look at this and say, Israelis and Arabs are shooting at each other again. Wow, what's new?

But I think the reason you have your serious face on the day before New Year's, John, is that what we're seeing in the region is the popular protest, the angers directed at Israel, directed at America, directed at their own regimes for being so impotent and that has a danger of boomeranging back here and boomeranging elsewhere. I think there's a way of deescalating this. The truth is the six months no casualties, there was a ceasefire. It was working.

ROBERTS: Certainly a big issue about to drop in the incoming president's lap. Daniel Levy at the New America Foundation.

Daniel, it's always great to see you. Thanks for coming on this morning.

LEVY: Thank you.

ROBERTS: Christine.

ROMANS: Israel is calling it a fight to the end. So what is President Bush saying or doing about the intense fighting between Israel and Hamas? Elaine Quijano is live near the president's ranch in Crawford, Texas this morning. Elaine, good morning.

ELAINE QUIJANO, CNN CORRESPONDENT: Good morning to you, Christine. Well, at this hour, Bush administration officials are closely monitoring events on the ground in Israel and Gaza.

(BEGIN VIDEOTAPE)

QUIJANO (voice-over): As Israel air strikes across Gaza stretched to a third day, President Bush at his Texas ranch conferred with top advisers via secured video, leaving it to a spokesman to reiterate the U.S.'s view.

GORDON JOHNDROE, WHITE HOUSE SPOKESMAN: Hamas has a choice to make of right now, they're choosing to be a terrorist organization that fires rockets into Israel. That is not going to lead to a sustainable ceasefire.

QUIJANO: The Bush administration continues to stand by Israel, blaming Hamas for provoking the latest violence. And as Israel amasses tanks near the Gaza border, the U.S. is being cautious in commenting on the possibility of an Israeli ground incursion.

JOHNDROE: I think that any ground operation according to the Israelis would be part and parcel of the overall operation, given their statements saying that they don't want to retake Gaza, that they simply want to protect their people.

QUIJANO: Secretary of state Condoleeza Rice has been in contact with senior Palestinians and Israeli officials, trying to work towards what the U.S. is calling a sustainable and durable ceasefire. But analysts says with Hamas, which controls Gaza, at odds with other Palestinian leaders, any lasting peace appears a long way off.

PROFESSOR SHIBLEY TELHAMI, UNIVERSITY OF MARYLAND: We have to understand, unless we have a united Palestinian house and some enforceable ceasefire, it's very difficult to do diplomacy.

(END VIDEOTAPE)

QUIJANO: Bush aides say it's up to Hamas to stop the violence. And even as Israel moves tanks along the border with Gaza, the U.S. is notably not urging restraint. Christine.

ROMANS: Elaine Quijano in Crawford. Thanks, Elaine.

ROBERTS: Well the FBI is trying to figure out what happened to a passenger on board a Norwegian cruise ship. Agents are looking at surveillance tape from that ship and talking to witnesses after a woman disappeared on Christmas night.

Our Sean Callebs is monitoring the story for us. He's live in New Orleans this morning. Sean, this is just a bizarre mystery, some indication that this woman may have committed suicide and others people saying she was pushed.

What's going on?

SEAN CALLEBS, CNN CORRESPONDENT: Yes, exactly. Layer after layer as authorities are continuing to look at this. We do know that surveillance cameras were rolling aboard that ship on Christmas night and captured the images of someone going over the railing. The question is, was a crime committed? The FBI is indeed looking into that right now but at the same time, we know that her family says, this could have been the final act of a despondent woman.

(BEGIN VIDEOTAPE)

CALLEBS (voice-over): It's a high seas mystery. One the FBI meeting the Norwegian Pearl when it arrived back in Miami on Sunday.

UNIDENTIFIED MALE: It was crazy. I mean I'm sitting in my room and I see CNN come on and we're on the news.

CALLEBS: 36-year-old Jennifer Ellis Seitz seen in this video taken back in 2003 apparently went over the ship's railing on Christmas into the water, about 15 miles off the coast of Cancun, Mexico. After searching for days, the Coast Guard and Mexican Navy called the search off Monday.

UNIDENTIFIED MALE: There's so many different crazy stories on the ship.

CALLEBS: The FBI has seen surveillance tape taken aboard the massive cruise liner that shows someone going overboard. The agency is trying to determine if a crime has been committed. The FBI says it's standard when an American apparently dies on the high seas. Seitz's husband Raymond reported his wife missing around 3:30 in the morning, at least seven hours after she apparently went over the rail.

The Seitzes took the cruise to celebrate their wedding anniversary and took Jennifer's mother as well. A joint Ellis-Seitz family statement says "Jennifer was in a very happy uplifted mood, but went on, Jennifer however has had previous emotional issues. The family suspects that Jennifer chose an unfortunate ending to her life. She was a beautiful and caring person and will truly be missed by all who love her."

(END VIDEOTAPE)

CALLEBS: And we are learning more about Seitz's husband, Raymond. You're looking at a mug shot taken in Polk County sheriff's office in April of this year after he was charged with domestic violence. Now, the victim's name in the report was redacted. But in that report, Raymond Seitz basically admits head butting the victim. But we should point out that charges were later dropped once he went through a diversionary program. And also John, authorities aren't calling him a suspect. At this point, we just want to stress they're just trying to determine if a crime has been committed on the high seas.

ROBERTS: And obviously the lack of witnesses and just that surveillance tape makes it difficult to try to figure out what exactly happened. Sean Callebs this morning. Sean, thanks so much for that.

ROMANS: All right. You want to want to eat more, weigh less and live longer? Stay tuned, Dr. Gupta has tips from a place where living to 100 is almost routine and they have all they can eat. It's 39 minutes after the hour.

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ROBERTS: 42 minutes after the hour here, the most news in the morning continuing our ongoing coverage of the crisis in the Middle East and the ongoing conflict in Gaza. Let's get you oriented just a little bit as to what's what here. You can see Israel on the big wall here, and it comes down from the Mediterranean Sea down to the tip of the Red Sea and then up this way the red outlines of the West Bank and right over here outlines the Gaza strip, that small area where Hamas is in control, just zooming in here.

This is the city of Gaza. More than a million and a half people live in this area. It's incredibly densely populated. And to the top of the screen is the area where it's believe a lot of those rockets are coming from. If we just zoom in here a little bit, the presidential guest house is one of the areas that was targeted by the Israeli Air Force. You can see the results there of the bombs. There of course have been other targets. A prison was hit in there, parts of the Islamic University. There were many security areas controlled by Hamas that have been hit as well as a hospital.

Let's show you exactly why it is that this area is in such conflict here. Bring you over to the town of Sderot which is about 2 1/2 miles, three miles away from Gaza. This really is ground zero where these Qassam rocket attacks have been taking place.

You might remember that the President-elect then candidate Barack Obama visited Sderot back in the summer of this past year and he went to the area, the police station where they actually collect all of the remains of the rockets in an incredible collection that they have there. Since 2001, actually some actually 3,000 rockets have been fired out of Gaza, toward Israel, Sderot, again, being ground zero.

With the first version of what's called a Qassam rocket, which had a I guess a range of about five miles or so. Further up the coast here, along the Mediterranean is Ashkelon, a person was killed here yesterday by a Qassam rocket. This is starting to get to the outer limits of the regular Qassam rocket. About seven miles away and this is an area that has now been under increased fire because had these new enhanced Qassam rockets. And further up the coast here, about 19 miles away from the border with Gaza, is Ashdod, and somebody was injured here in the past couple of days by a rocket that was fired.

Now that they have, coming out of Gaza these enhanced Qassam rockets, further up the coast here to Ashdod and Ashkelon and then further inland as well to a lot of kibbutzes that are surrounding the Gaza strip are very much now in the target range.

So this is why Israel wanted to go in there to stop all this, to try to knock down those rockets. So far, they haven't been able to do it because Hamas keeps on firing those rockets. They're saying they might go in on the ground and ground invasion could take a lot of Israeli casualties because Hamas as we said earlier today has been stockpiling weapons over the past few years and certainly over the last few months.

The calculus as to whether or not to go in a difficult one, particularly given what happened at the end of the Israeli-Hezbollah conflict, where there was a massive ground invasion in the closing hours of that campaign which didn't really result in gaining much ground but resulted in the death of a lot of Israeli defense force members. We dedicated by the way, a special section of CNN.com to this breaking news story. If you're away from your television, you can get all of the latest on the Israel-Hamas conflict at CNN.com/gaza. It's now 45 minutes after the hour.

(BEGIN VIDEOTAPE)

ROMANS (voice-over): The eat all you can eat diet. UNIDENTIFIED FEMALE: Eating foods low in calorie density helps to fill you up.

ROMANS: Dr. Sanjay Gupta shows you how to eat more, lose weight and live longer, just in time for your new year's resolution. You're watching the most news in the morning.

(END VIDEOTAPE)

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ROMANS: This week, in a special series, called "Living Longer," chief medical correspondent Dr. Sanjay Gupta is looking at how we can live longer. Today, we look at secrets from the Far East, that sounds too good to be true, eating more, weighing less, and living longer. Dr. Gupta's live in Atlanta this morning. Good morning, Sanjay. Sign me up.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Well, you know, there's no gimmicks here on AMERICAN MORNING as you know, Christine. What I'm about to tell you is true. You could eat more, you could weigh less, you could be healthier. As you watch what I'm about to tell you, I want you to think about a couple of terms. Calorie dense versus water dense foods. Take a look.

(BEGIN VIDEOTAPE)

GUPTA (voice-over): Okinawans tend to eat more food than Americans but are often thinner and live longer. In fact, Okinawa has more centenarians per capita than anywhere else on the planet.

You see despite eating a greater volume of food, they are consuming fewer calories. That's because much of their diet consists of fruits, vegetables, tofu and soup. And all these food contains a lot of water and they also follow a tradition called Hara Hachi Bu, pushing away from the table when they're only 80 percent full.

BARBARA ROLLS, "THE VOLUMETRICS EATING PLAN": You're starting the day on the run and you get a typical breakfast. For 400 calories, you're going to get three-quarters of a cinnamon bun.

GUPTA: Half a world away, Penn State professor Barbara Rolls studies the way Americans eat. She says Americans are eating too much fast food. It's food she calls calorie dense.

ROLLS: And they are sold very cheaply and very conveniently and they are very easy to overeat.

GUPTA: A burger and a fries for example is mostly fat, protein and carbohydrates. Fat is 255 calories per ounce. Carbohydrates and proteins are each 113 calories per ounce. Fruits and vegetables on the other hand are mostly water and fiber. Fiber averages 57 calories per ounce. Water, zero calories. Rolls thinks we should eat less calorie dense foods. In other words, more fruits and vegetables as well as soup. She calls this volume metric eating. ROLLS: Volumetric helps you feel full on fewer calories. And we know that eating foods that are low in calorie density helps to fill you up.

GUPTA: So what about Americans, following Hara Hachi Bu?

ROLLS: How do people know if they are 80 percent full if they don't know even when they are 200 percent full.

GUPTA: Instead, Rolls says we should make sure we get full on less.

(END VIDEOTAPE)

GUPTA: I want to give you some examples of this volumetrics. Make it as clear as possible. Take a look here at what 500 calories might be. Specifically it could be half a burger, some French fries, just a few fries and a little bit of soda. That's 500 calories.

Now, compare that to another example of 500 calories, and look at how much more food you are getting. A big bowl of vegetable soup, a full chicken sandwich and as much diet soda as you would like. This is sort of the basis of volumetrics. It's sort of the basics of a Hara Hachi Bu as well. A term that I love, Christine. To be able to push the plate away when you're not entirely full.

ROMANS: But Sanjay, I don't have a little gas gauge that gets to 80 percent and then gives me a bell. You know I tend to keep eating. How do I know when I'm at 80 percent full and know when to stop.

GUPTA: Well, you know, I researched this quite a bit for the book, "Chasing Life," when I was writing that. One of the things that is sort of interesting is that you know no one knows exactly when you're 80 percent full. There's a couple of things to keep in mind. It takes about 15 minutes for your brain to receive the signal that your stomach is starting to have food in it. Most of us can eat a four course meal in 15 minutes. And therein lies part of the problem.

So simply eating slower will provide some benefit but also never stuff yourself. Never making yourself completely full. Whether it's 80 percent to 75 percent, never stuffing yourself, pushing the plate away before you're completely full. Within 15 to 20 minutes you're probably going to get that sense of fullness, you just have to wait a little bit for it to happen. Christine.

ROMANS: Maybe put the fork down between the bites. Slow yourself down.

GUPTA: Chew your food. Yes, that helps as well.

ROMANS: It's so un-American. Sanjay Gupta. Thanks, Sanjay.

GUPTA: Thank you.

ROMANS: And tomorrow in our "Living Longer" series, Sanjay tells us why you should be running for your life, right here on AMERICAN MORNING.

(BEGIN VIDEOTAPE)

ROBERTS (voice-over): Chaos and panic in the Middle East. We're live on the ground as the fury and violence intensifies. It's an all out war.

Plus, a holocaust couple with a story so sweet it sounds too good to be true. And it is. Even Oprah got duped again.

UNIDENTIFIED MALE: We only ate one slice of bread a day and water.

ROBERTS: The love story. The lie. You're watching "the most news in the morning."

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

JAMES FREY, AUTHOR: I think I made a lot of mistakes. In writing the book and, you know, promoting the book.

OPRAH WINFREY, TELEVISION HOST: Do you think you lied or do you think you made a mistake?

FREY: I think probably both.

(END VIDEO CLIP)

ROMANS: Arthur James Frey appeared on the "Oprah Winfrey Show." Back in 2006, he apologized after Winfrey endorsed his memoir which he later admitted was mostly made up. Oprah now finds herself in a similar situation. She called the story of Herman and Roma Rosenblat, the greatest love story she's ever heard. But the touching holocaust era romance and the book that describes it about to be released, turned out to be nothing more than that, just a story.

CNN's Randi Kaye has more -- Randi.

RANDI KAYE, CNN CORRESPONDENT: John and Christine, it's one of the most poignant love stories ever told. A boy in a Nazi concentration camp. A girl who tossed apples over the fence to help him survived. A chance meeting more than a decade later. A marriage that lasted 50 years.

(BEGIN VIDEOTAPE)

ROMA ROSENBLAT, HERMAN'S WIFE: It looked like you know, they're hungry. I threw the apple over and I threw out a piece of bread.

HERMAN ROSENBLAT, AUTHOR: She was my angel. She was the angel that my mother sent me. Because my mother told me in my dream that I'm sending you an angel.

KAYE (voice-over): When Herman and Roma Rosenblat's love story was first made public 13 years ago, Oprah featured them on her Valentine's day show. She called it the single greatest love story in 22 years of doing this show. The trouble is, it was just a story. It wasn't true. Oprah was duped just like she would be years later by James Frye in his memoir, "A Million Little Pieces."

But it wasn't just Oprah. Herman Rosenblat told his story on CBS and "Lifetime." A children's book was written about it. And Penguin's Berkley book was set to release "The Angel at the Fence" in February. A movie was in the works. But now Rosenblat's published has pulled the plug. After receiving new information from his agent that the love story was made up.

Professor Kenneth Waltzer never bought Rosenblat's story.

KEN WALTZER, MICHIGAN STATE UNIVERSITY: The idea of a prisoner being able to autonomously approach the fence, not just once but every day at the same time, none of it seemed plausible.

(END VIDEOTAPE)

KAYE (on-camera): There are some grains of truth. Professor Waltzer says Herman Rosenblat was in a concentration camp and did meet his wife on a blind date in New York city in the 1950s. But the professor says during the war, Rosenblat's wife Roma was hiding with her family about 200 miles away from the camp where Herman was imprisoned behind the now famous fence.

(BEGIN VIDEOTAPE)

KAYE (voice-over): So why would a holocaust survivor make this love story up? In the 1990s, Herman Rosenblat was shot. In a statement released through his agent, Rosenblat said that in the hospital he dreamt that his mother told him to tell his story. When he came out of the hospital, his business was gone and he began to write. Rosenblat wrote, "I wanted to bring happiness to people to remind them not to hate but to love and tolerate all people. My motivation was to make good in this world. In my dreams, Roma will always throw me an apple, but I now know it is only a dream."

(END VIDEO CLIP)

KAYE: A dream for Rosenblat, a nightmare for his publisher which refused to comment on its process for fact checking memoirs. John. Christine.

ROBERTS: Randi Kaye reporting for us this morning.

Randi, thanks so much.