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Virginia Senator George Allen Concedes Defeat; Democrats Set to Assume Control of House and Senate; President Bush Welcomes Incoming President of Mexico
Aired November 09, 2006 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: All eyes on Virginia right now -- sources telling our Dana Bash there on Capitol Hill that incumbent Republican Senator George Allen plans to concede to his Democratic challenger, Jim Webb, any second now.
That means that Democrats will take control of the Senate, as well as the House. With a surplus of 7,200 votes, Webb has already declared victory. As a matter of fact, he did it on our air just a few days ago.
But a vote canvass has gone on anyway, to see whether there would have be a runoff.
CNN's Jeanne Meserve has the latest now in Arlington, Virginia -- Jeanne.
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: We are expecting Senator George Allen to begin his press conference any minute now. And sources have told CNN that he is going to concede this race.
It is quite a remarkable reversal of fortune, when you consider, this is an incumbent Republican senator who, a couple of months ago, had a double-digit lead in this race, and saw it completely evaporate. Polls in the last week showed his Democratic opponent, James Webb, leading. And, of course, it has come down here to this very pitched battle, which has extended two days beyond Election Day.
But here is the reality. The canvassing of votes in Virginia is ongoing, but, at the moment, it has shown very little shift in the vote tally. What shift there has been has been to James Webb's columns. So, the reality sunk in, in the Republican camp and in the Allen camp that the senator really had no option here but to concede, or he risked ill will amongst the voters of Virginia.
And we all remember Florida, and that recount, and how long it went on, and how upset and irritated some voters became. Here, there didn't appear to be any substantial reason to call for a recount -- and, so, the senator apparently deciding this is the time to throw in the towel here -- Kyra.
PHILLIPS: And when, indeed he does step up to the mike, and -- and, when that happens, we will take it live, Jeanne.
But, just looking forward, once that happens, and once we see this shift of power up on the Hill, Democrats taking control of the Senate, as well as the House, the talk about Iraq and policy in Iraq, prior to this point, so many people on the Hill talking about, when that happens, when the Democrats have the majority position, that we may see more investigations into the Iraq policy and hearings on why we want to war in Iraq and Afghanistan, and a lot of the criticism that has taken place.
So, we could actually see a change in foreign policy once that balance of power changes.
MESERVE: Well, you are certainly going to see a lot of pressure for changes. Whether or not it will come will ultimately be up to the president and his administration.
But, yes, there will be serious pressure from the Democrats now in both the Senate and from the House. Of course, it was an issue here in this campaign. Virginia, as elsewhere, there was a great deal of disapproval of the war and how it had been conducted. And it factored into this race.
But there were so many other things at play here in Virginia, as well. One of the things that sent the Allen campaign stumbling downhill was his remark to a Web staffer. He called him a macaca. This was an Indian staffer. This is considered a derogatory term. It led to other sorts of reports that Allen had used other sorts of derogatory racial phrases.
He threw back charges that his Democratic opponent, James Webb, was a sexist. He quoted some salacious passages in some of Mr. Webb's writings. He's an author, in addition to other things.
And, so, it became a very personal, in some ways, quite a contentious and nasty campaign here in Virginia. The Iraq war did figure into it, certainly one of those top issues. But there were many other issues at play here.
I should add, Kyra, of course, we will be hearing from James Webb this afternoon, as well. Initially, he was going to give a press conference this afternoon at around 1:00. But the campaign made the decision that they wanted to hear from George Allen first. They wanted to hear him concede. So, he will talk at 3:00. And, then, James Webb will follow, at about 4:15.
And, at that point, we will probably hear more from him than -- even than we did during the campaign, about the road forward, and what he hopes to accomplish while he is the senator from Virginia.
Obviously, as a Democratic senator in a Democratically-controlled Senate, he is going to be able to do a lot more than had the Republicans kept control of that chamber -- Kyra.
PHILLIPS: Jeanne Meserve, monitoring all things from Virginia there.
Also, I believe, Dana Bash is up on the Hill as well?
DON LEMON, CNN ANCHOR: Dana Bash is up on the Hill.
And, of course, if Allen's concession, if he does, in fact, concede, that will clinch it. The power on Capitol Hill will tilt back to the Democrats.
As we watch this live picture, let's bring in our congressional correspondent, Dana Bash. She is there -- Dana.
DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Hi there, Don.
Well, in fact, that is really the big story here, which -- that this announcement, this concession, we expect to happen in a matter of moments, that that will trigger a seismic shift in power in the United States Congress.
Of course, it happened -- there was a lock on power for the Democrats on election night, but the Senate has been in limbo because of what has been happening in Virginia. And the Democratic leaders -- currently, the minority leaders are already planning on coming out. They have a press conference scheduled for the bottom of the hour.
They're going to come out and declare the election over, and talk about, as fast as they can, some of the things that they are going to want to do, some campaign promises that they insist they're going to try to make good on, things like minimum wage, talking about energy policy, talking about health care.
Those are the things that they are now going to be able to do. Why? Because that is really sort of the key thing to keep in mind here. Now that Democrats will have control of the Senate, when they come back to work in January -- the new Congress, that is -- they control the agenda.
So, in the past several years, with the Republican control, Democrats could use some maneuvers, use amendments to try to get their issues on the table. Now it is going to be the Democrats who are going to be in charge, and going to be able to move things forward. So, that is going to be a major, major difference here.
And we are going to hear from the Democratic leader, Harry Reid, who we understand is going to try to set a conciliatory tone, just as he and the Democratic leader over in the House, Nancy Pelosi, have been trying to do over the past couple of days. We will see how long that lasts. Everybody is trying to work hard to make it clear that the partisanship we have seen, the intense partisanship, especially in the run-up to the election, that they are going to try to, as they say, move that into partisanship -- into partnership, rather.
But it's important to keep in mind that, even though there is going to be Democratic control, especially in the Senate, it doesn't necessarily mean the end of gridlock. Why? Because you still need 60 votes to get anything done. And this is going to be a razor-razor- thin margin from Democrats.
So, Republicans can do what Democrats have done. They can block the legislation that Democrats want to get through. LEMON: And, of course, Nancy Pelosi yesterday talking about the Democrat ' six-point plan.
And, then, today meeting with the president and the vice president, Dana, she talked about, you know, saying that they don't always necessarily agree on everything, but she is going to being the speaker, if that does happen, the speaker of the House, not just the speaker for Democrats.
So, I guess we're seeing some reaching across the aisle here that may happen, at least in the -- the next two years, as long as this next administration lasts.
BASH: That's right. That's what they say.
You know, interesting -- it's interesting to hear Nancy Pelosi say that. She is -- she trying to do that to reach out to Republicans, for sure. But she also is making that clear because of the diversity inside the Democratic caucus.
You know, many of the Democrats who were elected in the House, and even in the Senate, they are not -- you know, they don't have the same kind of philosophy, if you will, as Nancy Pelosi, or even perhaps as some of the leaders here in the Senate.
They are coming from, in some cases, rural areas, and they, on social issues, on fiscal issues, many of the Democrats who have been elected are even more conservative than some of the moderate Republicans in the Northeast.
So, I believe that we are going to hear from George Allen momentarily to actually make this official, make his concession of the Virginia race official, and make the control of the United States Senate go over to the Democrats.
LEMON: Dana Bash, you're exactly right. We are going to hear from him in a little bit. So, we are going to stick with this and stick with these pictures.
And we're going to turn it over to someone else -- Kyra.
PHILLIPS: Well, while we wait for the senator, the incumbent Republican Senator George Allen, to step up to the mic, let's go over to the White House -- Elaine Quijano there standing by.
Elaine, a big day today for Nancy Pelosi, the majority in waiting -- the majority leader in waiting, shall we say, meeting with the president of the United States, also the minority ship, discussing the future of this relationship between the Bush administration and Democrats.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Absolutely, Kyra.
And, as Dana was saying, certainly, this has been an election season filled with partisan rancor, bitter partisan rancor. But, clearly, President Bush and Congresswoman Pelosi trying to set a conciliatory tone. They met for lunch here at the White House and, afterwards, were in the Oval Office -- both of them saying that they are moving together and want to move forward in a bipartisan fashion.
Now, in the interim, though, before Democrats take control of the House, and looking like the Senate now, President Bush is making clear he's got a couple of things he would like to push through the lame- duck Congress.
I believe now I will turn it over to you, Kyra.
PHILLIPS: Sure.
QUIJANO: I understand Senator Allen is coming out now.
PHILLIPS: Senator George Allen, his wife, Susan, and their daughter, along with their supporters.
We're going to listen now as he steps up to the microphone.
(CHEERING AND APPLAUSE)
SEN. JOHN WARNER (R-VA), ARMED SERVICES COMMITTEE CHAIRMAN: Thank you.
(CHEERING AND APPLAUSE)
WARNER: Thank you very much.
One of life's great privileges is to serve as a public servant on behalf of the historic Commonwealth of Virginia.
(CHEERING AND APPLAUSE)
WARNER: George and I, through the support of Virginians across this state, have been given that privilege.
And today marks an important chapter, in not only the history of George Allen and John Warner, but the whole commonwealth, because one of its favorite sons, who has valiantly and courageously, together with his lovely wife and family, have served this commonwealth...
(CHEERING AND APPLAUSE)
WARNER: The Allen family has served this commonwealth with great courage, determination, honesty and integrity.
And 23 years of that period, George and I have been side to side, beginning when I first campaigned with him to go to the General Assembly, then to the Congress of the United States, then to the office of governor, and then to the United States Senate.
Side by side, day in and day out, we have tried to do our very best on behalf of the United States of America and the people of the commonwealth. We have...
UNIDENTIFIED FEMALE: Thank you. UNIDENTIFIED FEMALE: Thank you.
UNIDENTIFIED FEMALE: Thank you, Senator Warner. Thank you, Senator Allen.
(CHEERING AND APPLAUSE)
WARNER: Our relationship was worked on a -- based upon a very solid foundation of mutual respect and mutual trust.
And, from this day forward, I will continue, as will George, to maintain that relationship. And we will exchange with each other our views, counsel one another.
And I know that George Allen and his lovely wife and family have a bright future.
Ladies and gentlemen, welcome my working partner in the United States Senate for these many years, Senator George Allen.
(CHEERING AND APPLAUSE)
SEN. GEORGE ALLEN (R), VIRGINIA: Thank you.
We will throw one pass out here. Doing one pass here. You ready?
WARNER: That big fellow -- yes, there he is.
ALLEN: There you are.
(APPLAUSE)
ALLEN: There you go, Brooke.
(LAUGHTER)
(APPLAUSE)
ALLEN: Thank you.
First, I want to thank God, thank God for the greatest blessing in my life, the person who's been with me for over 20 years, has been a wonderful mother to our children, and always my first lady, dear Susan.
(CHEERING AND APPLAUSE)
ALLEN: I'm also thankful for little Brooke here.
Thank you for being with us, Brooke.
And my other two children, who are in school today. Education matters.
(APPLAUSE) ALLEN: I'm also thankful for my mother, who brought me life, who was involved in this campaign as well.
I'm also thankful for this gentleman here -- a friend, a patriot and a genuine American hero, John Warner, Virginia's greatest ever.
(CHEERING AND APPLAUSE)
ALLEN: John, you did everything you could. You were by my side when we would discuss issues, nominate judges, and in this campaign. And no one could have a more loyal colleague and partner and friend than -- than I have in you.
John, thank you. Thank you so very much.
(CROSSTALK)
(APPLAUSE)
ALLEN: I see a lot of staff here from my office staff, who have done so much work, with great dedication, for the people of the Commonwealth of Virginia, from volunteer departments, who have gotten equipment, to Social Security benefits to veterans, and folks in immigration on a variety of different matters.
Thank you for your dedication to the commonwealth and the people of our commonwealth.
(APPLAUSE)
ALLEN: I see a lot folks here who are part of the campaign team, who volunteered.
Thank you for your hard work.
The Republican Party of Virginia, all of them, and especially Kate Griffin, chairman of the Republican Party of Virginia, who has led the party and has been a part of my team since the days I was governor. Thank you to all the volunteers, the staff, and everyone who worked on the campaign.
(APPLAUSE)
ALLEN: My friends, sometimes wins, political or otherwise, can blow the leaves off branches and even break limbs. But a deep-rooted tree will stand, stay standing. It will regrow in the next season.
In this season, the people of Virginia, who I also call the owners of the government, they have spoken. And I respect their decision.
The Bible teaches us that there's a time and place for everything. And, today, I have called and congratulated Jim Webb and his team for their victory. They had the prevailing winds.
I wished Jim Webb well -- Jim Webb well in the U.S. Senate, and, more importantly, pledged to Jim Webb my absolute full cooperation in the transition.
Senator Warner and I have worked together. We will work together to make sure that Jim Webb, as he sets up that office, is up and running as best as possible for the people of Virginia.
It's also very important that you have pending constituent service matters that will blast on for a few months or longer, and it's important that those people from Virginia are getting the service and logistical assistance that they need.
Let me say this on behalf of Susan and myself. For about the better part of 13 years, Susan and I have very much appreciated the honor of having the responsibility of serving the people of Virginia in the United States Senate and as governor.
We have devoted all of our energy, our hearts, our minds, to doing the best job we can to make Virginia a safer and better place for everyone to live, learn, work and to raise their families.
We have more people with welfare reform that are leading independent lives. Families, retirees, entrepreneurs, are keeping more of what they earn. Folks who are on the Internet don't have taxes on their access bills. Young people are getting a better education, with more knowledge, meaning that they have greater opportunities in their lives.
There are people who are not victims of crime, because violent criminals are staying behind bars, for the judges or juries' imposition of a sentence.
There are literally hundreds of thousands of people who are in good-paying jobs in Virginia, the "Silicon Dominion." And that's good for them, and also good for the future of our commonwealth.
(APPLAUSE)
ALLEN: A lot of folks have been asking about the recount. Let me tell you about the recount.
I have said the people of Virginia, the owners of the government, have spoken. They have spoken in a closely divided voice. We have two 49ers, but one has 49.55, and the other has 49.25, after at least this -- so far in -- in the canvasses. I'm aware this contest is so close that I have the legal right to ask for a recount, at the taxpayers' expense. I also recognize that a recount could drag on all the way until Christmas.
It is with deep respect for the people of Virginia and to bind factions together for a positive purpose that I do not wish to cause more rancor by protracted litigation, which would, in my judgment, not alter the results.
I'm motivated and believe that each of us is placed here on Earth to do something well. I'm one who believes that we should lead a life with honorable purposes and a purpose-driven life.
I see no good purpose being served by continuously and needlessly expending money and causing any more personal animosity.
Rather than bitterness...
(APPLAUSE)
ALLEN: When one wants to do things that are positive and motivational, rather than bitterness, I want to focus on how best Virginians can be effectively served by their new junior senator, as Jim Webb assumes and does is duty for the people of Virginia.
Now, my team, there's a lot of philosophical allies here, a lot of friends, A-teamers. We live to fight another day for our vision of America's future, a vision first of freedom...
(CHEERING AND APPLAUSE)
ALLEN: ... a vision of security for our country, and a vision of expanding opportunity for all.
Well, come January, not as a senator, but as an American citizen, you can count on me to be advocating American competitiveness, of less taxation on people and entrepreneurs, of more creative energy independence for this country, and also better education, so that more young people can compete and succeed in life, in a fulfilling life, and also making sure that our commonwealth and our country is the world capital of innovation.
Susan and I, in closing, thank all of you all. Thank you for allowing us the privilege, the great honor and responsibility of serving you, our shared principles and ideals for these many years.
We thank you for your encouragement, your support. And I say this to Virginians and people all across America, we also felt and still feel your prayers, notwithstanding...
(CHEERING AND APPLAUSE)
ALLEN: And, so, teammates, fellow patriots, notwithstanding these results, no matter the challenges that any of us face in the future, always stay strong and stand strong for freedom.
May God continue to bless Virginia and the United States of America. Thank you all.
PHILLIPS: It's now official. Democrats will take control of the Senate, as well as the House, balance of power, GOP 49, Dems 51, two of those 51's independents. You can see it here, Webb officially picking up 50 percent of the vote, had a surplus of 7,200 votes.
Webb had already declared victory, but now it's official -- Republican incumbent Senator George Allen conceding to his Democratic challenger, Jim Webb.
Jeanne Meserve there in Virginia following it all.
Talking about what he had done during his term, Jeanne? MESERVE: And also, Kyra, pointing out that, under the law in Virginia, he could have asked for a recount in this race, because the margin of victory for Webb is so very small. But he has made the decision, he said, not to do this.
He said, "With deep respect for the people of Virginia, and -- and wanting not to cause rancor with protracted litigation, I see no good purpose by continuously and needlessly spending money and causing personal animosity," Senator Allen said.
One rather intriguing thing he said at the beginning of this, he talked about trees and how, in a strong wind, winds, that even branches could be knocked down, but -- but that the tree could regrow.
What remains to be seen is whether he is talking about himself and his political future, and whether he will, once again, make a bid for an elective office here in Virginia -- Kyra.
PHILLIPS: Jeanne Meserve, live from Virginia, as all eyes were on Virginia, obviously, for the past couple of days, now incumbent Republican Senator George Allen conceding to his Democratic challenger, Jim Webb.
LEMON: Yes.
All eyes on Virginia, and we are going to stick with Virginia. And we're going to bring in now congressional correspondent Dana Bash. She is standing by on Capitol Hill.
You're getting reaction -- or, I imagine, just your reaction from the speech. He -- saying that he called Jim Webb to congratulate him and to concede first. So, he's, you know, sounding like he's OK about it, at least it appears in public, Dana.
BASH: That's right.
Well, you know, sources close to Senator Allen -- in fact, somebody who I talked to who had just hung up the phone with the senator last night -- said that he already, you know, was making it clear that he didn't want to drag this out.
And, as Jeanne was just pointing out, this is a senator who, just a few months ago, was really thinking about 2008. He was thinking about an Iowa primary. He was thinking about a New Hampshire primary and a run for the White House.
So, what he was trying to signal there is, I'm not going to put the state of Virginia through this, because I'm thinking about them, and I'm also thinking about my future.
But the bottom line here is that, after 12 years of Republican rule, the Democrats now control both houses of Congress -- Don.
LEMON: Dana Bash, thank you very much for that.
And we want to remind our viewers, in our 4:00 hour, coming up in our next hour, we're going to hear from Jim Webb, the Democratic challenger, who has now been declared the winner. And, of course, his opponent has conceded.
We will be right back in the CNN NEWSROOM.
(COMMERCIAL BREAK)
LEMON: Well, it is a done deal. The Democrats win control of both the House and the Senate.
And, just moments ago, his wife and youngest child by his side, Virginia Senator George Allen, conceded.
(BEGIN VIDEO CLIP)
ALLEN: I have said the people of Virginia, the owners of the government, have spoken. They have spoken in a closely divided voice. We have two 49ers, but one has 49.55, and the other has 49.25, after at least this -- so far in the canvasses. I'm aware this contest is so close that I have the legal right to ask for a recount, at the taxpayers' expense. I also recognize that a recount could drag on all the way until Christmas.
It is with deep respect for the people of Virginia and to bind factions together for a positive purpose that I do not wish to cause more rancor by protracted litigation, which would, in my judgment, not alter the results.
(END VIDEO CLIP)
LEMON: Now, here now to talk about the senator's concession and a changing Congress, Republican strategist David Johnson, joining us right here in Atlanta, and, in Washington, Democratic strategist Julian Epstein.
Thank you both for joining us.
He's doing it for the voters, Mr. Johnson, is what he's saying.
DAVID JOHNSON, REPUBLICAN STRATEGIST: Well, he's doing it for the 2008 election.
I mean, there's been a lot of rumors that Senator John Warner is going to retire in 2008. So, what he is doing is, conceding now to set up for a run in 2008. As he said in his concession speech, he's like a tree, and the tree hasn't fallen yet.
LEMON: Yes.
JOHNSON: And he is going to run again, because he has future aspirations.
LEMON: You're saying he cannot run for president. So, you think he is going to run for senator or possibly for governor again?
JOHNSON: For governor again. Those are the two modes of speculation. But he can't run for president, just as Rick Santorum can't. Both lost their home states in a senatorial contest. So, therefore, they are eliminated. The biggest winner on the Republican side for the presidency has been Massachusetts Governor Mitt Romney.
LEMON: Yes.
Conventional wisdom, Julian, is that he could have stayed at home and been reelected. But if it weren't for some of the missteps he had on the campaign trail, that he would, in fact, be the senator now.
JULIAN EPSTEIN, DEMOCRATIC STRATEGIST: That's probably correct.
In the same way that President Reagan never -- or, I beg your pardon, President Bush never survived the Katrina catastrophe, Senator Allen never survived the macaca comment.
This was a race that everybody thought he would win. I think that the recount would have surely been futile. Nobody, even I think Republican operatives, believe that he could have made up 7,000 votes on a recount.
Nevertheless, his concession speech was very eloquent. For Democrats, it's like the line from "The Candidate." Now the hard part begins.
I think, more so than anything else, this is certainly a repudiation by the American public of the conservative movement, with the switch of houses, both the House and the Senate, to the Democrats.
But Democrats have to be very careful, because, again, this was a vote largely against Republicans. They have got to be very pragmatic, and they have got to be careful not to overreach. And I think Majority Leader Reid and Speaker Pelosi understand this. So, I think you will see a very cautious and very smart Democratic Party, starting, most intelligently, with ethics reform.
(CROSSTALK)
LEMON: And, Julian, we're going get to Nancy Pelosi.
But I'm hearing some dissension from David here.
JOHNSON: Right.
LEMON: You don't think it was a repudiation.
JOHNSON: No. It was a repudiation of President Bush and the Republican leadership in Congress. It was not a repudiation of the Reagan revolution or the Reagan conservative movement.
What we saw were, Republican conservatives either stayed at home, or they voted Democratic because they were angry because they feel the current Republican leadership had betrayed Ronald Reagan's principles. That's why the Democrats were able to win, not a repudiation of the Reagan revolution. EPSTEIN: Well, the conservative movement for sure, as represented by the inauguration of President Bush is over now. And I think that independents, in large part, voted not just against the Iraq war but certainly against the policies of the Iraq war and certainly against the ethics catastrophe that has been associated with the Republican Party.
JOHNSON: But that's not associated with the conservative movement.
EPSTEIN: I think independents also voted against the social conservatism. I think independents voted against stem cell research -- the position conservatives took on that ...
JOHNSON: We didn't see that with the Heath Shuler's victory in North Carolina. We didn't see it in other...
EPSTEIN: But I think you did in Colorado.
JOHNSON: Iraq was the major issue. It was not a repudiation of conservative principles.
EPSTEIN: Well, we'll agree to disagree.
JOHNSON: We'll disagree and find out in 2008.
EPSTEIN: We'll agree to disagree on that. I think as you saw in Colorado, independents absolutely were moving against social conservatism. Nevertheless it is very clear that the two messages that did come from the electorate is that they want a policy change in Iraq and they want a policy change on ethics.
LEMON: And Julian....
EPSTEIN: And I did not see a great deal of movement from President Bush in his press conference.
LEMON: And what about this reaching across now because you mentioned Nancy Pelosi earlier. And of course this morning, Nancy Pelosi and the president and the vice president and other Democratic leaders meeting today at the White House. Let's take a listen to some of what they talked about after that meeting and then we'll comment on the other side.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The elections are now behind us and the Congresswoman's party won. But the challenges still remain and, therefore, we're going to work together to address those challenges in a constructive way.
REP. NANCY PELOSI (D), CALIFORNIA: We both extended the hand of friendship, of partnership, to solve the problems facing our country, the challenges that America's working families face. I look forward to working in a confidence building way with the president, recognizing that we have our differences and we will debate them. (END VIDEO CLIP)
LEMON: To keep it safe, both of you guys, these people were not friendly to each other during the campaign and have not had good things to say about each other and, now, they're buddies.
JOHNSON: But, we see that during campaigns. I mean, rhetoric. Tip O'Neill and Ronald Reagan used to go and bash themselves all the time, and then after hours, they were friends. But no, the Nancy Pelosi and George Bush relationship is not going to be close and I think you're going to see a lot of fighting between the two of them and a lot of gridlock coming once they take power.
LEMON: Do you believe that, Julian because they're both saying they may not disagree all the time, but they're agreeing to debate at least and that's sort of what the Constitution is about, so do you agree with that?
EPSTEIN: Well, I think we're going to have some good civics here. I think you will see sharply views on Iraq. I think you'll see sharply different views on health-care policy, on education, on energy independence and I think that's actually good for the country to see a sharp debate of those ideas and we haven't seen those in the last two years.
And I think what you saw at the White House this morning was a kumbaya moment and that's very typical after an election such as this. David is right, Tip O'Neill and President Reagan had a very good relationship even though they fought like cats and dogs on policy. Even Gingrich and Clinton had a pretty good one, but the question really is, whether the president ...
LEMON: All right Julian, I hate to cut you off, but that going to have to be the last word because we do have some other breaking news coming in now. We want to lead you to a press conference and my partner here bra is going to do that. Thank you guys.
PHILLIPS: Actually, it's the victory party. I don't know, gentlemen, you might want to weigh in on this. It's the victory party here because as you saw, just moments ago, it's a done deal. Democrats win control of both the House and the Senate.
You saw live on our air just moments ago, Virginia Senator George Allen and his wife and his youngest child. Senator Allen conceding obviously, to the winner there in Virginia, Webb, which now officially, after 12 years, Democrats regain control of the House and the Senate.
And we're looking for the main players here, we are expecting to hear from Senators Harry Reid. Looks like he's going to make his way up to the mic first. We're also looking for Charles Schumer, Dick Durbin, among others. Let's go ahead and listen in, obviously, as Democrats celebrate this moment right now live on CNN.
SEN. HARRY REID (D), NEVADA: Thank you all very much. Thank you. Thank you. The election is over. It's time for a change. It's time for bipartisanship. It's time for open government, transparency, and it's a time for results. We believe that this country has spoken loudly and clearly. There must be a change of direction in Iraq.
We have to have results in doing something to make healthcare more affordable and more available. We have to do something to create energy independence. It's time we do something, of course, about education, the staggering deficits we have here in Washington the last many years that have to stop.
This time for a new direction has given us an opportunity, a chance to prove to the American people that we can work with the Republicans. They've set a very bad example in not working with us. We're not following that example. We're reaching out to them as we have from the time the election -- let me just say that I'm so -- I shouldn't use the word proud, but I'm so proud of my leadership team here. They're the best. Senator Durbin.
SEN. DICK DURBIN (D), ILLINOIS: Well, let me tell you this. Two years ago, 45 to 55. Today, 51-49. It took more than just two calendar years, it took a lot of determined effort. Harry Reid brought this caucus together. Harry Reid brought unity to this caucus, a sense of purpose, and a determination that we would again have an opportunity to ask the American people for a chance to lead. Let me first thank my colleague, the new Majority Leader, the Democratic leader, Harry Reid!
AUDIENCE: Harry! Harry! Harry! ...
DURBIN: But in order to win an election, you start with the best candidates and the best campaigns. Harry Reid picked the very best person to head up that effort. Picking our colleague, once very shy and quiet, now stepping forward to lead our caucus with a great roster of candidates an inspired staff, terrific campaigns from sea-to- shining sea, delivering our first elected majority in how many years? Too many years. My roommate. The senior senator from New York, Chuck Schumer!
CROWD: Chuck! Chuck! Chuck! ...
DURBIN: I will just close by telling you that millions of people spoke on Tuesday night and we heard the message. The message is America can do better. We can come together on a bipartisan basis to solve the real problems facing our country. And we faced, during the course of this campaign, a lot of critics and a lot of challengers who tried to divide America, who tried to divide us one against another, who preached the campaign of fear and division.
Those voices were rejected on Tuesday night. The voices of unity and diversity and hope were the voices that prevailed on Tuesday night and that's what will inspire us as we start this journey. In just a few short hours, our new senators will arrive. From many different places, they will come together with those who are already here with a mission. A mission to bring a new America, a new direction in Iraq. Change when it comes to our foreign policy and our domestic policy.
America, you've given us an opportunity. We accept it. We will fight hard to make sure that your message of November 7th is delivered, not only in the Senate but in the House of Representatives, where we're fortunate to have the proposed speaker, Nancy Pelosi -- doesn't that sound pretty good? Working together, we can not only make a better agenda for our nation, but a better Congress for years to come. Should I introduce this man to my right?
REID: Go ahead.
DURBIN: All right. I can't tell you what a fantastic job Chuck Schumer has done, and I can't tell you, unless you followed his schedule as closely as I have, how many hours he put into this effort, away from his family, working long, hard hours when many of us were off doing other things.
He raised more money, found better candidates, put better campaigns together than we've ever seen with a fantastic staff. Let us now greet the chairman of the Democratic Senate Campaign Committee, our hero, Chuck Schumer!
SEN. CHARLES SCHUMER (D), NEW YORK: Thank you. Thank you. Thank you. What a great day it is, not only for us and not only for our candidates, but for America, because this great democracy has responded to the cries of the people for change and elected an excellent, outstanding crop of diverse, hard-working, committed freshmen senators.
And let me say, first, that there are so many people to thank. Obviously, our leadership. Harry Reid was unstinting in what he did for the DSCC. We have -- we were close before, but we have developed a bond, as you do almost through combat, that will never break. And I just want to say to Harry, thank you, especially during those tough times, for bucking me up and being there and doing every single thing we have asked.
And to my roommate, Dick Durbin, I eat his cold cereal. He buys a whole box of soda and it's gone before he gets to drink one can. But far more important than that, Dick Durbin has been a true friend and even more important than that, somebody who carries in his insides the integrity and desire to make our country a better place. And, time after time, he has steered our caucus and our Senate in that direction, so thank you, Dick.
DURBAN: You're welcome.
(APPLAUSE)
SCHUMER: And one final word of thanks to the great DSCC staff led by J.B. Poersch, the best staff and team that has ever been assembled. Now, let me say this: the hard work has really just begun and make no mistake about it. Our joy today will vanish if we can't produce for the American people.
We will have to work hard in a bipartisan way. We will have to push aside the special interests and always keep our eye on the average American family and think of them as they sit at the dinner table Friday night, talk about their problems and their dreams for their kids, trying to figure out how to pay the healthcare bills and the tuition bills and the gas bills and the heating bills, as income levels stay flat.
We must never lose sight of them. And it is our job, it is the mission that they have entrusted us, to make their lives a little bit better. If we can do that, if we can keep our focus on the average family, we will stay a majority for a generation and that is what we aim to do.
So will we stand up to the president when we think he is wrong? Yes. But our real mission is to work together and help the Americans family and make a better America and we pledge today that we will never lose sight of that, our true mission.
DURBIN: Good job.
SCHUMER: Thank you, America, for trusting us. We promise you, your trust has not been misplaced.
PHILLIPS: The mantra? Time for a new direction. I think all of America is eager to see what that new direction is going to be. You heard from Senators Harry Reid, minority leader; also Chuck Schumer; also minority whip Dick Durbin there, celebration of sorts with the support of fellow Democrats.
As you saw it, just moments ago, Democrats won control of both the House and the Senate, first time in 12 years. That all came after Virginia Senator George Allen conceded. He, his wife, his young daughter there live in Virginia.
We'll be following, of course, for the rest of the week -- only one more day to go -- the results of what happened today. Something we've all been waiting on pins and needles to find out the result, and now you have it. It's a done deal.
LEMON: And it's only Thursday, right?
PHILLIPS: There you go.
LEMON: It's just been a few days. OK, we're going to move on now.
There's old saying about fences making good neighbors. Today, President Bush welcomed the incoming president of Mexico. Coming up in the NEWSROOM, we'll tell you what the visitor said about a fence along the U.S. and Mexican border. You're in the NEWSROOM. Don't go anywhere.
(COMMERCIAL BREAK)
LEMON: On a busy day of comings and goings at the White House, President Bush welcomed in the incoming Mexican president, Felipe Calderon. Red carpets are -- no, are not. Calderon has made clear he isn't happy with the U.S. plan to build a fence along the Mexican border.
Now, with more from Washington, CNN's Juan Carlos Lopez. What did the two men talk about?
JUAN CARLOS LOPEZ, CNN CORRESPONDENT: Well, according to President-Elect Calderon, they talked about border security, about illegal immigration, and about trade between the two countries. That seems to be the essence of their conversation in the White House. And Calderon, who left the White House, gave a press conference and should be leaving the United States at around 6:00 p.m. Eastern time.
LEMON: Now, Juan Carlos, I'm sure you've been paying attention to the election here and the Democrats are in Congress now, and how will the Democrats being in control of the House and also the Senate, how will that affect Mexican relations and will it affect immigration issues at all?
LOPEZ: Well, the Democrats have said that it will. And they've said they want comprehensive reform and President-Elect Calderon has said in his visit to Washington that he believes they can work closely with the Democrats to improve the relations with the two countries and to solve the issue of the fence.
He says that the fence is not a solution, believes that there should be more investment in Mexico to improve the life of the poorest people in that country so that they don't feel the need to come to the United States and, obviously, that's a very, very interesting debate.
LEMON: Is this change in power perceived as positive or negative?
LOPEZ: It's a continuation. Mr. Calderon belongs to the same party as President Vicente Fox, who's still in office. Calderon will take over in January.
So it's seen as a continuation of that party's rule and it's also seen as a continuation of the relations between the U.S. and Mexico. Calderon distanced himself from Fox for a while but then they got back close together.
LEMON: And Juan Carlos, I'm reading this. This is news that's not too long here to the newsroom. The governor of the conflict- ridden Mexican state of Oaxaca promised Wednesday to devise a plan to end more than five months of protest featuring widespread calls of his resignation. The Mexican government said today President Fox had to call for national troops to help quell that violence there in Oaxaca that began as teacher protest.
What's going on there?
LOPEZ: Well, back in May, at the end of May, there was a strike by teachers who were demanding pay raises and other benefits. And they went into talks with Governor Ulises Ruiz from the preparty (ph), and they say that the talks went nowhere.
They took over the main square in the city and police tried to take them out. They weren't successful.
LEMON: Was that part of the discussion today at the White House, though?
LOPEZ: Well, that's not clear. It's not clear. They had so many issues of -- trade is so important between the U.S. -- it seems trade was a big element.
But for Mexico, Oaxaca is very important and Calderon is probably -- who -- by the way, there was a protest outside the White House during Calderon's visit.
But Calderon is very interested in improving problems such as this crisis in Oaxaca, because Oaxaca's a very important tourist magnet for their country.
LEMON: Yes. Let's continue with that. People recognize Oaxaca for its rich history and folk art. As a matter of fact, we have some here, right here in the CNN NEWSROOM, these beautiful wood carvings right on our set.
Why is the situation there so vital to the Mexican economy? This is the contribution really to the economy that people make there. This is what people go there to buy.
LOPEZ: Well, Oaxaca is probably one of the three poorest states in Mexico. There are 31 states in Mexico. Oaxaca is one of the three poorest. It's in the Pacific, and its main income comes from tourism and from the sale of these artifacts.
Since the riots started, there was a warning by the State Department advising Americans not to go there. And according to the same State Department, about 14 or 15 million Americans go to Mexico every year and about 400,000 live there.
Since this started, tourism started. Hotels are closing. Restaurants are closing. And the craftsmen who make these artifacts aren't selling any and that's having a big impact on the economy.
The governor announced that he would devise a plan, but that was because he was told by the federal government to devise a plan or resign, as many have been demanding because of the crisis in that state.
LEMON: And we will see what happens in the future. Obviously, more news on this to come.
Juan Carlos Lopez, thank you so much for joining us today in the CNN NEWSROOM.
LOPEZ: My pleasure.
PHILLIPS: Midterms are done. Now comes the big test, the one for the White House.
A short time ago, the first candidate in either party made it official. Iowa Democratic governor Tom Vilsack, filing papers at the at the Federal Election Commission to create a presidential campaign committee. Vilsack plans to take to the road at the end of this month to formally kick off his 2008 campaign.
So how does Vilsack rate against potential party rivals?
Well, at the bottom, judging by a CNN poll from two weeks ago. The survey asked registered Democrats their choice for 2008 White House nominee. New York Senator Hillary Clinton topped the list with 28 percent, following by Illinois Senator Barack Obama. Al Gore and John Edwards were tied for third. Massachusetts Senator John Kerry was fifth. Trailing the pack, senators Evan Bayh of Indiana, Joseph Biden of Delaware, and Russ Feingold of Wisconsin, New Mexico Governor bill Richardson and, finally, Vilsack.
Well, the closing bell and a wrap of action on Wall Street straight ahead.
(COMMERCIAL BREAK)
LEMON: Well, this just in to the CNN newsroom. Live pictures from Baxter, California. We've confirmed that one person has died and several others were injured after a train maintaining railroad tracks in the mountains east of Sacramento derailed.
It sparked a fire that you can see in a heavily wooded area. The train was loaded with thousands of gallons, we're told, of diesel fuel and hydraulic fuel. And one person has died. Six to eight other people injured. That's happening in Baxter, California. Stick with CNN throughout the day and throughout the evening for updates on this, if it is warranted.
PHILLIPS: Well, backyard one day, bright lights, big city the next. And 88 foot Norway spruce from Ridgefield, Connecticut is headed for New York's Rockefeller Center on a flatbed truck.
Come on, we show this to you every year. You know that. We don't have to tell you why.
On Friday the tree goes up and decorating gets underway. The Yuletide tradition began in 1933.
Susan Lisovicz has been there. She's watched it. She's walked around it. She loves the tradition as well.
LEMON: It's beginning to look a lot like Christmas?
(STOCK MARKET REPORT)
Now it's time for "THE SITUATION ROOM" and Wolf Blitzer.
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