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President Bush & Blair; Spy Death Probe; Home Foreclosures

Aired December 07, 2006 - 10:00   ET

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

HEIDI COLLINS, CNN ANCHOR: A major outbreak of frigid air driving deep into the south today. Even Florida will be chilly.
TONY HARRIS, CNN ANCHOR: And day of infamy. We hear from survivors of the sneak attack on Pearl Harbor. This Thursday, December 7th, you are in the NEWSROOM.

COLLINS: Staunch allies in the Iraq War, struggling to find new direction. President Bush meeting right now with British Prime Minister Tony Blair. Certain to be discussed, the recommendations from the Iraq Study Group. White House correspondent Elaine Quijano is joining us now live.

Elaine, you know, we are very familiar with Prime Minister Blair's concessions that the coalition is not winning the war. Will he be there today to recommend that President Bush, or counsel him, if you will, to take some of these recommendations from the Iraq Study Group seriously and implement them?

ELAINE QUIJANO, CNN CORRESPONDENT: Well, no doubt, those are the things that are being discussed within the Oval Office right now. We'll have to see what happens at that news conference immediately afterwards. In fact, around the 11:00 hour is when we're expecting to hear that.

But, you are right. The British prime minister is, in fact, one of the staunchest administration allies when it comes to the war on terrorism, and specifically Iraq. The British prime minister, at this hour, sitting down in the Oval Office with President Bush, along with the vice president, we are told, Secretary of State Condoleezza Rice, Stephen Hadley, the president's national security adviser, as well as Josh Bolton, the chief of staff and the counselor to the president, Dan Bartlett.

Now, that ISG report came out yesterday, but the White House is saying that, in fact, the timing of Prime Minister Blair's visit was coincidental. The White House insisting that it was just a coincidence. But, of course, with some 7,000 British troops in Iraq, the ISG's findings are sure to be a main focus.

Now, last month the prime minister was actually interviewed by members of the ISG and, of course, the prime minister has taken some political heat back home for his steady support of the Bush administration's Iraq policy. There could, however, be a fissure in that united front. Before leaving for Washington, the prime minister did, in fact, say that he agreed with the incoming defense secretary's sentiment that the war in Iraq was not being won. Blair has also signaled that he'd like to see a more open approach when it comes to Iran and Syria. President Bush, for his part, of course, has been reluctant to do so.

Now, the prime minister believes that solving the problems in Iraq are linked to resolving the Israeli-Palestinian conflict and engaging Iraq's neighbors. All of that familiar territory. Something mentioned by the Baker-Hamilton Commission as well.

Interesting to note one other point, Heidi, that before the Oval Office session, the formal session that was on the public schedule, President Bush and the prime minister had a chance to sit down for over an hour, one-on-one. They had breakfast here at the White House.

Heidi.

COLLINS: Interesting. And when you talk about the Middle East conflict and Blair being a staunch supporter of starting there with the diplomacy, if you will, in the region, we already know that one of those recommendations regarding Iran and Syria, the president has said no way, not going to meet specifically with Iran until they abandon their nuclear ambition. I've been listening in, Elaine, and I heard that James Baker say to the Senate Armed Services Committee this. "I hope we don't treat this like a fruit salad. I like this and I don't like this. This is a comprehensive approach." That would mean entertaining the idea of Iran and Syria.

QUIJANO: Well, well, that's true. And what's interesting is that the president, of course, and his advisers are being very careful not to weigh in, in any specific fashion on any of these recommendations.

Now, Press Secretary Tony Snow was asked about the idea of direct talks with Iran and Syria. But when it comes to the idea of perhaps working within a larger group, there was a little bit of wiggle room there. What we have heard from the administration is what we've continued to hear from them all along, in that there are certain steps that Iran and Syria must take before the United States will directly engage. But that's a one-on-one discussion.

Whether or not a group discussion is out of the question, that's another matter. We'll have to wait and see. But certainly, at this point, the administration is being very careful not to say, yes, we like these recommendations, no, we don't like these. The bottom line is that they're studying it and they've got their own internal reviews to look at as well

COLLINS: Absolutely. And other reports out there as well to consider.

All right, Elaine Quijano live from the White House. Thank you.

HARRIS: And live this hour on Capitol Hill, lawmakers holding their first hearing on the Iraq Study Group war strategy. And speaking right now, asking questions of the co-chairs of the Iraq Study Group, Senator John McCain. SEN. JOHN MCCAIN, (R) SENATE ARMED SERVICES COMMITTEE: "Because of the importance of Iraq to our national security goes, our ongoing fight against al Qaeda, we considered proposals to make substantial increase in the number of U.S. troops in Iraq. We rejected this course because we do not believe that the need levels are available for a sustained deployment."

Well, my studies and figures show that they are available for sustained deployment, at least in order to get the situation under control, number one. And I want to tell you something that I know that you know. There's only one thing worse than an over-stressed Army and Marine Corps, and that's a defeated Army and Marine Corps. We saw that in 1973. And I believe that this is a recipe that will lead to, sooner or later, our defeat in Iraq.

I don't believe that a peace conference with people who are dedicated to your extinction has much short term gain. I do not believe that a regional conference with Iran and Syria, who obviously have at least very different short term goals than the United States of America, including 1,000-year-old ambition on the part of the Persians to exert agemeni (ph) in the area, are probably, at least in the short term, going to lead to a viable solution or one that we would agree on.

But most of all, this issue of saying that we don't support increased number of troops because we've always known now that there was not enough troops there, that is the overall consensus of opinion to say that we don't have enough troops, but we're threatened to have less unless you somehow react in a way that we want you to, is a degree of impracticality. Withdraw the troops and then still have thousands of American soldiers embedded in Iraqi units that are of questionable value or loyalty, I think, puts at risk a large number of American military advisers.

I'd like to hear your response to that, but I do also want to thank you again, with the greatest respect, for the hard work that you and the other members of the commission did.

JAMES BAKER, CO-CHAIR, IRAQ STUDY GROUP: Thank you, Senator. Let me say one or two things. And I know Lee will have some comments as well.

First of all, with respect to the augmentation of forces. We called for a five-fold increase in the U.S. combat forces dedicated to the training and equipping mission. We do point out that those forces could be -- it's up to the commander in chief, of course, they could be available perhaps in region without bringing them in from the United States or they might be brought in from the United States.

We did receive commentary from people to the effect generally that we do not have readily available combat forces up to the level of 100,000. That if that were the policy approach that was suggested, that would be available to go in there for at least quite some time.

We're not suggesting a regional conference, Senator McCain, as a solution or a panacea to this. It is really only part of a comprehensive strategy. General Kane's (ph) comments we noted today as well and what he really, I think, was saying, at least the way I read them, was that the training and equipping mission would not succeed. And that's his opinion. We received opinions to the contrary. But it -- whether he's right or whether the others are right, we think it's worth a try. Particularly if we're going to enhance the number and the capability of our trainers, as is also called for in this document.

LEE HAMILTON, CO-CHAIR, IRAQ STUDY GROUP: Senator McCain, I'll pick up on the last point you made first, and that relates to the risk to embedded American forces with Iraqi forces. You're absolutely right about that. There are risks there. And if you put American forces right into the middle of this sectarian violence, working with Iraqi forces, those young men and perhaps young women, too, are in a place of danger.

Now, we tried to deal with that by saying that we're going to do everything we can to -- by way of force protection. We will have combat forces there to protect the embedded forces. We're going to have all kinds of logistics and supply efforts to help them. But there is no blinking the fact that that's a risky mission, and a difficult mission, and we should not slide over it, as you have not, in your comments.

The comment the general made about we can't get there is a deeply pessimistic comment. Not without some basis. We appreciate the fact that the training of forces, Iraqi forces, did not go very well for the first two years. We do believe that we've learned, and through trial and error, that our efforts over the past year have been much, much better. And we believe . . .

HARRIS: And you've been listening to some of the testimony, the question and answering that's going on right now before the Senate Armed Services Committee, as that committee gets to question the co- chairs of the Iraq Study Group.

First of all, just a quick reminder, if you would like to hear more of this as it's happening and unfolding right now, we encourage you to go visit cnn.com/pipeline. But some tough questioning there from Senator McCain. Senator McCain suggesting that any plan that doesn't call for an increase in troop strength in country is a recipe for defeat in Iraq and also didn't think much of the idea of a regional conference with Syria and Iran, calling that a bad idea as well.

Still an open question as to where, as is one of the recommendations in the study group report, where do you get the new combat forces to embed with the Iraqis. Are they going to come from in country, simply redeploying U.S. forces from where they are now to different locations in country, or will they come from the United States. Still being discussed, as you can hear. Still pretty much an open question. We will sort of check in and monitor the goings on in that committee hearing and we will bring bits of it to you throughout the morning.

COLLINS: Shivering in the deep freeze. Bitter cold temperatures continue to grip the Midwest. Tens of thousands of people running out of electricity in Missouri and Illinois. They spent another night without power. It could be tomorrow, in fact, before it is restored. It's been almost a week since an arctic blast blanketed the area in ice, snow. That storm blamed for at least 18 deaths now. The frigid temperatures are expected to stick around for a while, too.

We want to go ahead and get over to Chad Myers.

Boy, that's the last thing these folks want to hear.

(WEATHER REPORT)

HARRIS: Freaky weather across the pond. How about this? A tornado hits a north London neighborhood. One hundred, fifty miles an hour winds blowing roofs off of homes and knocking down trees. One man suffered serious head injuries. Five other people had less serious injuries. The U.K. averages -- didn't know this -- 33 tornadoes a year, but they're rarely as powerful as today's twister.

COLLINS: And also in London, the funeral for a Russian spy. Scotland Yard trying to unearth answers in Moscow. Alexander Litvinenko's murder by radiation. More on that in the NEWSROOM.

HARRIS: A new way forward in Iraq. President Bush has a list of recommendations in hand. We will talk with a guest about which ones he is not likely to follow. That is coming up in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: New developments this morning in the bizarre poisoning death of former KGB agent Alexander Litvinenko. Russian prosecutors say they're opening their own criminal investigation. That announcement as friends and family gather for funeral services at a London mosque. Our Jennifer Eccleston is live in London.

Jennifer, good morning.

JENNIFER ECCLESTON, CNN CORRESPONDENT: Good morning, Tony.

Well, that's right. Some of the developments here in London, as you mentioned, a little bit of closure for the family of Alexander Litvinenko. There are, in fact, two services being held today. A memorial service at a mosque. Some of the pictures you're probably seeing right now. And then there will also be a funeral service elsewhere in London at a church.

Now there's been a lot of secrecy surrounding these two events. Part of it's because the family had asked the media to respect their privacy. But also there's a great deal of speculation that there will be a number of exiles from London, perhaps from Moscow, who will be at that funeral. Russian exiles. And there's a great deal of disquiet amongst that community here and they don't particularly want to have their names and pictures flashed back around the globe that they attended this funeral.

But we know that the family is able now, two weeks after the death of Alexander Litvinenko, able to bury him and to hold some form of memorial services.

Tony.

HARRIS: So, Jennifer, I understand that British police are having some difficulties with their investigation in Russia. What's up there?

ECCLESTON: Well, the whole point of that front of the investigation was to try and carry out a certain number of interviews with various witnesses, trying to shed some light, provide some clues and evidence, if you will, into the death of Mr. Litvinenko. They came across certain challenges when the Russian prosecutor general said that they would not actually be able to conduct those interviews. They could merely watch the interviews as they were being conducted by Russian prosecutors. Certainly a certain sense of frustration among the British police who are there, that they're not able to conduct these interviews themselves.

But still, they're looking at a number of people. And two people of note. We know one is Andre Lugovoi, a former KGB spy turned businessman. An associate of Mr. Litvinenko. He met Alexander Litvinenko on the day that he became ill, November 1st, when it is alleged that he was poisoned. And interesting here also that Mr. Lugovoi, in practically almost all of the spots in London where he visited, there had been some traces of that deadly isotope, polonium- 210. He is now back in Moscow. He said that he is also in the hospital and they are examining whether or not he had radiation exposure.

The other person we have just learned now and that is coming from the Russian, is Dmitry Kovtun. He was also at that meeting with Mr. Litvinenko. The Russians are now saying that he will be hospitalized because he now has trace elements of radiation exposure.

And with that they announced that they opened up their own criminal investigation into the deaths of the former spy and also into the alleged poisoning of this latest victim, Mr. Dmitry Kovtun. This is a way for them to prosecute those two men or others back in Russia because they said -- earlier the Russian prosecutors said that no one will be extradited back to the U.K. because it is against their constitution.

Tony.

HARRIS: Got you. OK. CNN's Jennifer Eccleston for us in London.

Jennifer, thank you.

COLLINS: He was nominated less an month ago to replace Donald Rumsfeld. Now Robert Gates has been confirmed as the next secretary of defense. He will be sworn in December 18th. Gates faces the daunting job of finding new strategies in the Iraq War. The former CIA director sailed through confirmation hearings that lasted just eight hours. The Senate approved his nomination by a vote of 95-2. The two no votes came from Republican Senators Jim Bunning of Kentucky and Rick Santorum of Pennsylvania.

HARRIS: Gerri Willis, here's my problem. I'm in trouble with my home. I'm facing foreclosure. But please help me avoid the scammers.

GERRI WILLIS, CNN CORRESPONDENT: I'm telling you, Tony, foreclosures are up. The scam artists are coming out of the woodwork. We'll tell you what you need to know, next on "Top Tips."

(COMMERCIAL BREAK)

COLLINS: Want to go ahead and take a check of the Dow now. We're looking at those numbers. About 28 points up. Resting at 12,336. Nasdaq, though, down about 6 points or so.

And as we mentioned earlier today, big business story is gas prices. We are all interested in that. Looking like those prices are going to go up. Kind of a rare time of year. But oil prices have continued to rise, even though gasoline inventories have declined. So maybe it's more of that whole supply and demand idea.

HARRIS: Here we go again, sure.

Troubling signs of the times. Home foreclosure rates soaring and so are the scams preying on homeowners desperate for help. Here with some tips to help you out here, CNN personal finance editor Gerri Willis.

Gerri, great to see you as always.

WILLIS: Good to see you, Tony.

HARRIS: Hey, you know, help us. Help us here. We want to save our homes if we can. We certainly want to avoid the scammers. How do they work?

WILLIS: Well, let me tell you a little bit about foreclosure first. They're up 27 percent nationwide from the same time last year. A lot of folks having trouble. Let's take a look at some of the trends out there. Here's a snapshot of just how much foreclosures have increased in some states.

Now, we're seeing triple digit gains in places like Nevada, Wyoming and Alabama. Keep in mind that foreclosure rates tend to go up in colder months, simply because fewer homes are sold.

Tony.

HARRIS: Yes, so -- OK, so I get that. And I can understand from seeing those figures why, you know, there's kind of a fertile market out there for these scam artists.

WILLIS: Exactly.

HARRIS: How do they do what they do?

WILLIS: Well, it's kind of complicated, but they call themselves foreclosure rescue experts. They target people having trouble paying their mortgage. Scammers claim to save your house or pay your mortgage. But I've got to tell you, don't be fooled. In one foreclosure scam scenario, the homeowner surrenders the title to the house, thinking they can rent for a while and buy the house back over a few years. But, Tony, this almost never happens. Scam artists will just walk away with all your equity. Other times homeowners just sign a bunch of documents, not even realizing that they're giving up ownership of the house. And, Tony, I've got to say, they often target the elderly. So you're going to want to keep an eye on your parents here and your grandparents.

HARRIS: Yes, that's good advice. Can my lender -- if I got in a little trouble here, if I've got some contacts that I don't want, can my lender help me here?

WILLIS: You bet. Look, if you've received a foreclosure notice or even if you feel like you won't be able to make your mortgage payments, contact your lender pronto. You'll probably be able to negotiate your payments. Remember, lenders don't want to foreclose, it's expensive for them. They don't want to have your house on their books.

HARRIS: I don't want to get behind. I want to try to avoid that if I can, Gerri. But if I start to run into trouble, maybe it would be helpful if I knew a few of the warning signs.

WILLIS: Exactly. You've got to be suspicious of anybody or a person or a company calling themselves a mortgage consultant or a foreclosure service. Don't trust anybody who uses flyers to advertise or solicit for business door to door. These guys do this all the time. Watch for promises that lure homeowners into deals. These offers may include promises to save your credit. Don't go there.

HARRIS: You also advise us to get it in writing and that always makes sense.

WILLIS: Look, never be pressured to sign a contract. Don't sign anything that has blank lines or spaces. Information could be added later and you won't even know about it. You'll want to get everything in writing and make copies of the paperwork, check out any company that claims to be legitimate at the Better Business Bureau dot org. That's bbb.org. But, Tony, bottom line here, be suspicious. This is a growing problem.

WILLIS: So what is coming up? What do you have in store for us, Gerri, on the big "Open House" show this weekend?

WILLIS: The big "Open House" show, 9:30 a.m. Saturday morning, join us. We're going to talk about holiday gifts for your home. You should give something to your house. You know what I'm talking about here, Tony? And also we have a fabulous story about Warrick Dunn. He is the running back for the Atlanta Falcons. And he has this incredible project where he helps single mothers find a new house. Not only that, but he also furnishes it, puts food in it. It's a great story and he is a total charmer, I've got to tell you. HARRIS: Yes, he's a great guy. He's been doing this for so long now. Can't wait to see that. "Open House" this weekend right here on CNN and "Headline News," as well.

Gerri Willis, have a great day. Great to see you.

WILLIS: Good to see you, Tony.

ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins and Tony Harris.

COLLINS: We are watching and monitoring -- this is Susan Collins. She is a member of the Senate Armed Services Committee. The co-chairs of the Iraq Study Group are testifying before them as to their recommendations that were made public yesterday. That would be Jim Baker, Lee Hamilton. That's 79 recommendations list, if you will, 142 pages we've learned. Lots of questions coming from them. We've been listening to it and getting some interesting things that we will continue to bring you throughout the program.

HARRIS: As you can see, the findings of the Iraq Study Group report igniting quite a bit of a debate in Washington. I believe we have a bit of sound here we want you to hear from Senator Joe Lieberman just a short time ago.

(BEGIN VIDEO CLIP)

SEN. JOSEPH LIEBERMAN, (I-CT), SENATE ARMED SVCS. CMTE.: I'm skeptical that it's realistic to think that Iran wants to help the United States succeed in Iraq. They are, after all, supporting Hezbollah which gathers people in a square in Beirut to shout, death to America. They are giving sophisticated IEDs to the militias, which are killing Americans every day in Iraq.

So, to say that, as you do, that Iran should stem the flow of arms and training to Iraq, respect Iraq security and use its influence over Iraqi Shia groups to encourage national reconciliation, why would -- why is there any reasonable belief that the Iranians should do any of the things that you think they should do? And if they do, won't they ask us an unacceptable price, which is to allow them to go ahead --

JAMES BAKER, CO-CHAIR, IRAQ STUDY GROUP: Develop nukes?

LIEBERMAN: Exactly.

BAKER: Yeah, Senator, thank you. That's a very good question. And let me answer it this way.

First of all, we specifically exclude any linkage to the nuclear proliferation issue. We say that should not be taken up in any discussion we might have with Iran.

You're saying, why should we approach them? There are two reasons in my opinion. One, we did so in Afghanistan. And guess what, they helped us. Now, you're quite right. They probably would much prefer to see us stay bogged down in Iraq, and -- but approaching them in the context, Senator, of pulling together all of Iraq's neighbors to -- to put the finger on each one of them and say, you can do this, you can do that, you can do this. And they can all do a better job of not stirring -- fomenting trouble, or they can do a better job of trying to assist. Some of them are actually trying to assist.

But if we ask Iran to come and they say no, we -- and the Iraqi government -- then we will hold them up to public scrutiny as the rejectionist state that they have proven to be. Now, I'm not -- we're not naive enough to think that they -- in this case they may want to help. They probably don't.

The president authorized me to approach the Iranian government. I did so. And they, in effect, said we're not -- we would not be inclined to help you this time around. Fine. What do we lose by saying, we're getting all of Iraq's neighbors together, we want you to come. And if they say no, we show the world what they're all about.

Syria is a totally different issue, a totally different proposition. And I didn't understand you to say what makes you think we could get something out of Syria. What makes me think that is we got it -- I got it back in '91, after 15 trips there, at a time when they were a state that sponsored terrorism, but we talked to them and we made them change 25 years of policy.

(END VIDEO CLIP)

HARRIS: Timing couldn't be better. Let's bring in "The Washington Post" Diplomatic Correspondent Robin Wright.

Robin, help us sort through what we're hearing right now. This is a key recommendation in the Iraq Study Group report.

First of all, good morning, good to see you.

ROBIN WRIGHT, DIPLOMATIC CORRESPONDENT, "THE WASHINGTON POST": Thank you.

HARRIS: When the report recommends building international consensus and engaging Iran and Syria, constructively, are you a bit surprised that the report doesn't offer kind of a blueprint as to how you bring those parties to the table? It's a bit of what we're hearing right now.

WRIGHT: Well, in fact, Iraq Study Group does offer a very detailed description of what the United States can do to try to bring in -- it outlines a bargain. But it does a very ambitious proposal. It calls for Israel to give up the Golan Heights, in exchange, Syria has to turn around and recognize Israel's right to exist, end support of all terrorist and rejectionist groups, stop meddling in Lebanon, stop insurgents across the border, help win the release of Israeli captured soldiers.

And this is where I think the Iraq Study Group may be a little vulnerable. Because it is so ambitious. And this is calling for solution of problems that are -- have been intractable for over six decades.

HARRIS: That's a part of recommendation 16? Am I correct with that?

WRIGHT: That's correct.

HARRIS: OK. Let me ask you a bit of what we just heard there from Senator Lieberman and Secretary Baker. Let's talk about Iran for a second. If Iran is to come to the table, it sounds like Iran wants some kind of negotiation to go forward first. And would you put Iran's nuclear program on the table for discussion as a way to potentially get them to help in Iraq?

WRIGHT: Well, the Iraq Study Group says that the nuclear issue needs to remain where it is, in terms of negotiations. And that's being led by the European Union. There's a proposal on the table that offers to bring the United States into talks, if Iran will end its enrichment of uranium, which can be used both for a peaceful nuclear energy program and for weapons development. It does not say that these should all be brought together.

So, the proposals for Iran and Syria are very different. In terms of specifics, but the common theme is that there needs to be greater outreach. This, I think, is where the White House has drawn its line in the sand, to show know willingness do more than it already has, because it feels it's been -- it's made efforts and been rebuffed time and again.

HARRIS: I'm curious as to what you believe based on all of the people you talked to about this issue going on right now. Does Iran ultimately want on some level to be -- let me play a sound bite. It's infamous now, the 2002 State of the Union Address. President Bush talking about the "axis of evil" and then let me frame this question for you.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: States like these, and their terrorist allies, constitute an axis of evil, arming to threaten the peace of the world by seeking weapons of mass destruction. These regimes pose a grave and growing danger.

(END VIDEO CLIP)

HARRIS: To the question of what Iran wants. Do you believe that on some level Iran wants, in order to come to the table and play here, to be absolved from this particular designation from the president?

WRIGHT: Look, the Iranians have a vested interest in trying to bring stability to Iraq. It has its own very large Kurdish, Arab and Sunni communities, and any spillover, any violence, any sectarianism has the potential of spilling over into Iran as well.

Yes, at the same time, it clearly wants to have enormous influence with the Shiite community in Iraq. They are religious brethren. They consider themselves the common minority in the broader Islamic world. So, actually, there are some things that the Iranians share with us. That does not mean they want to see U.S. troops remain.

But I think that they're concerned, even though they're not likely to say this publicly, about the potential for even greater violence in Iraq if U.S. troops go. They want them out because they feel they're a threat to their own security, but they -- you know, they're concerned about Iraq as well.

HARRIS: Is there what you would call widespread belief in Iraq that talking to Iran and Syria is absolutely necessary in moving forward?

WRIGHT: Well, I think the Iraqis have made clear they want cooperation from their neighbors. They have reached out to both countries to try to get them to -- whether it's the Syrian, stop allowing insurgents across the border, or the Iranians to bring in arms that help the militias. They want better relations.

I think that the current government is deeply frustrated by the failure of these two important and powerful neighbors to do more to help them. But I -- you know, this is where you get ideas about an international conference, some way of --

HARRIS: The support group, yeah.

WRIGHT: The international support group that would bring the neighbors in, in a broader context with the Saudis, the Jordanians, the Kuwaitis, the Turks, as well as the European Union, the United States, the five permanent members of the Security Council to try to put pressure on all these players to do more to help Iraq.

HARRIS: And, Robin, in the final analysis, based on everyone you talked to on a daily basis about these issues, what is your sense as to whether or not the Bush administration will accept this recommendation, and figure out a way, maybe not directly, but figure out a way to talk to these neighbors?

WRIGHT: Well, this is one of the key questions, its own White House review is taking on right now, they are trying to figure out a way to revive, reenergize, redirect, re-chart a course for Iraq. But I think they've also made clear that there is very little interest in reaching out to Tehran and Damascus, at least one-on-one, because they fear that they -- this is not going to lead anyplace. They have tried in the past.

HARRIS: Diplomatic correspondent from "The Washington Post," Robin Wright. As always, great to talk to you, Robin. Thank you.

WRIGHT: Thank you.

HARRIS: President Bush and his staunchest ally in the war on terrorism, British Prime Minister Tony Blair, holding a news conference this morning, after their meeting. The news conference scheduled for 10:55 a.m. We will have it for you live right here in the NEWSROOM.

(COMMERCIAL BREAK) HEIDI COLLINS, CNN ANCHOR, CNN NEWSROOM: NASA's first nighttime launch in four years. It is scheduled for tonight, but weather may get in the way. Our John Zarrella is at the Kennedy Space Center now.

John, I understand we're a few thousand feet short when we're talking about this low-cloud ceiling?

JOHN ZARRELLA, CNN CORRESPONDENT, CNN NEWSROOM: Yeah, you know, it's funny, Heidi, you don't want low clouds at the time of liftoff. Certainly they want to be able to see the vehicle as best they can, even at night.

But if you were to go today, right now, the weather is absolutely gorgeous, but some low clouds over the Gulf expected to move in tonight. Only a 40 (AUDIO GAP) -- off the ground tonight and it's not much better, if at all better tomorrow or Saturday. The best day looks like Sunday.

But right now, still pressing ahead, possibly attempting that launch tonight. If they do get off the ground on this Discovery mission, it is going to be a very intense 12-day mission. There are three space walks planned. The crew of astronauts have practiced extensively on the ground at Johnson Space Center. A lot of practice in what's called the wet-EF (ph), the NASA underwater tanks. You can see some of the astronauts there donning some of the gear.

What they have to do up there is literally rewiring portions of the International Space Station, once they dock. It will require, again, three space walks, unplugging and re-plugging cables and wires. And unfurling and furling in, retracting old solar arrays (AUDIO GAP) ahead for them.

This is, again, the first night launch in four years. And what happened after the Columbia accident was they decided they had to have two very clean daylight launches before they would try another night launch.

Now, the first of the daylight launches back in July of '05, the Discovery launch, was not clean at all, debris coming off the vehicle from the external tank. We all remember that foam coming off. So they had to go with two more daylight launches that were clean launches.

You can see there the isolated -- the highlighted image of that debris coming off of Discovery in July of '05.

Well, the last two missions have been clean. It's allowed for the clearance of this mission to go at night. And what they will be able to do is use ground-based and sea-based radars to track the vehicle. And some of these radars, two of them that will be onboard the two ships out in the Atlantic Ocean, will actually be able to tell if there is other debris coming off of the -- of the space shuttle, be able to track that by measuring the difference in the speed that that material is actually moving.

Well, the commander of the Discovery mission, Mark Polansky, says you will still lose a little something not going in daylight. (BEGIN VIDEO CLIP)

MARK POLANKSY, COMMANDER, SPACE SHUTTLE DISCOVERY: You lose the opportunity to see something that may have come off the tank, and may have just missed hitting the vehicle. Which would really be something that's not that useful to you on this mission, but would be very useful for the next mission that's going to fly, in case some work needed to be done to fix that tank.

(END VIDEO CLIP)

ZARRELLA: Now, we are awaiting briefing from NASA where they will give us an update at least on the weather situation here. And whether they are going to go ahead with tanking of Discovery, which is expected to start, if it starts at about 11:43 a.m. this morning -- Heidi?

COLLINS: All right. John Zarrella, thanks so much for that. We will keep our fingers crossed certainly for the safety of the crew ultimately.

HARRIS: In just a couple of minutes, President Bush and British Prime Minister Tony Blair to hold a news conference, it's scheduled for 10:55 a.m., just a couple minutes from right now. The meeting comes one day after the release of the Iraq Study Group report, with its 79 recommendations for moving forward in Iraq. Expect plenty of questions on the group's recommendations. That's in just a couple minutes right here in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Let's get you to the NEWSROOM now, and Carol Lin. And Carol has more information on that heartbreaking story out of Oregon. We certainly hope for the best, with respect to James Kim. And Carol, I know you have some more information.

CAROL LIN, CNN NEWS ANCHOR, CNN NEWSROOM: Yes, Tony.

What we wouldn't do to save our children's lives, if we really felt that was on the line. We are learning more about the last hours of James Kim, as he was frantically searching for help in those snowy mountains up in Grants Pass, Oregon.

Thirty-five years old. His family stranded in the car. We've learned now that he was just wearing tennis shoes, Tony, and a jacket and a sweater. Apparently, he went on a -- like a three to five-mile trek in the snow, going down a ravine, following a creek and at one point, Tony, according to the search and rescue, they realized that he had to cross a frozen river.

He went into the water, in his clothes to try to get to the other side. They were tracking his footprints on these slippery rocks. They describe him as extremely motivated, and that was an understatement. The search and rescue folks are saying that there were areas that -- where the only option for the search and rescue people was to actually enter the pass, and go into the water and physically swim, and you are looking at the conditions in which James Kim was trying to get help for his family.

Search and rescue people say that it seemed super human to them that James Kim went to these lengths. And in really learning about the details of his frantic search for help, it brought the undersheriff out there to tears. This is what he had to say at a news conference.

(BEGIN VIDEO CLIP)

BRIAN ANDERSON, UNDERSHERIFF, JOSEPHINE COUNTY, OR: At 12:03 hours today, the body of James Kim was located down in the Big Windy Creek. Most of us have breathed and lived this for days, and, yeah, you do take it personally. And it's been tough.

(END VIDEO CLIP)

LIN: Well, Tony, a helicopter crew spotted Kim's body in a creek, and as you know by now, his wife and his two young daughters were rescued. Helicopters search team managed to spot the car down on that blocked road. But what admiration we have for this man, and all he tried to do to get help to his family.

HARRIS: What you wouldn't do for your kids.

LIN: Absolutely.

HARRIS: What a story.

LIN: It is heartbreaking, but a brave man and his story of coming out, the last final hours of his life.

HARRIS: Thank you for filling in some of those details for us. Carol Lin in the NEWSROOM . Carol, thanks.

COLLINS: On a day when we are talking more about the Iraq Study Group, and as we await for a press conference between President Bush and Prime Minister Blair, at the heels of their meeting on the very same topic, we want to bring in John King to talk more about the situation.

John, what do we know? We have -- Prime Minister Blair, I should say, has 7,000 of his troops in Iraq. We know that he has also already conceded -- actually awhile back now -- that the coalition is not winning the war. And that he believes this has to be done very delicately in solving and working diplomatically to get to the heart of the Middle East crises, if you will. What likely will he say to President Bush about the ISG?

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT, CNN NEWSROOM: What he says in private and what he says in public might be two very different things, Heidi.

Because when he stands with President Bush -- and Prime Minister Blair has taken a beating, a significant beating, back home politically for this -- but when he stands shoulder to shoulder with the president he is as strong a ally of the United States and as strong an personal ally of this president as you will find in the world. Again, he has suffered greatly for his resolve in that relationship.

But Prime Minister Blair, like the Iraq Study Group, has said for some time he wishes the United States would spend more time on the Israeli-Palestinian issue, that he believes it is the root -- or at least the excuse -- that terrorist groups use to foment anti-American and anti-Western sentiments in the Middle East.

He also is on the record as saying that he has no problem at least trying to have a dialogue with countries like Syria and Iran, so he would welcome the United States taking that step as well. In a way the Iraq Study Group is nudging President Bush in a direction that Prime Minister Blair has tried to nudge him privately, for several years now.

It's quite interesting. Both of these men have had their political standing deteriorated significantly, some would say almost destroyed by the Iraq war. And here they are standing together, Mr. Blair only a few months from stepping aside, Mr. Bush with two years to go. So it will be quite interesting to see if, as the president studies the Iraq Study Group report, and decides which recommendations to accept and which to reject whether Prime Minister Blair tries to publicly lobby him along a little bit.

COLLINS: Yes, that will be very interesting. So, John, how will this play, though, to the American people? To have the two of these gentlemen, as you say, their careers really on the line, and sort of deteriorated because of their stance on the Iraq war, how will it play to the public?

KING: Well I would venture a guess -- I haven't seen any recent polling, but I know from some time ago, I would venture a guess that Prime Minister Blair is more popular with the American people at large than President Bush is right now.

So this is something that helps President Bush, to stand there with the world leader, who is widely respected by the American people, widely respected, or at least more respected around the world than the president of the United States. This is an appearance that helps President Bush. There is no doubt that it is also an appearance that hurts Prime Minister Blair.

COLLINS: Is Prime Minister Blair the man who could get President Bush to take some of these recommendations, and implement them? Specifically when we talk about the Middle East crises, talking to Iran, talking to Syria? We know that that has been a very big issue.

KING: It has been a big issue. And the president's point -- and the president defends his point by saying this, we have had mid-level contacts with Syria and Syria has meddled in Lebanon, the administration would say, allowed the insurgents and allowed Saddamists to go back and forth over the border in Iraq. Mr. Bush would say, unless they change his behavior, why should he reward them with higher level conversations. In the case of Iran, the president says they're enriching uranium. They are thumbing their nose at the world, when it comes to their nuclear program. We have not had a relationship with Iran since the hostage crisis, back in the Carter administration. Why should you reward them with high-level talks.

What others would say, though, is, Mr. President, the policy is simply not working, not only in Iraq but across the Middle East. Why not try at least once or twice? Why not sent and assistant secretary of State, about the level that we meet with North Korea.

Send an assistant secretary of State, look them in the eye and say we'll give you one chance. We will essentially see if you are willing to change your behavior. What the critics of this president say is at least if you did that, people couldn't say you were being inflexible. People couldn't say you refused to sit down and talk with people who might be able to help you. Then, if they would not produce, if they would not come to the table in a productive way, you could at least say, Mr. President, that you tried.

COLLINS: Yes, and that seems to be the question. Jim Baker has brought it up quite a bit. You show the world about Iran's rejectionist sort of attitude. The bigger question may be then, if that happens, what does that mean? So the world sees that they are rejectionists. Then what?

KING: Well, then what is -- then what, is the issue. The president's position simply is why reward bad behavior? He has been very consistent in that regard, whether you support him or disagree with his position, he has been very consistent in saying he will not reward belligerent behavior, with high level contacts with the United States.

Will he have to change now because of the vote of the American people, because of the verdict of the Iraq Study Group, because of the pressures of the Democrats in Congress? Even Republicans in Congress? Perhaps. But the president has been pretty steadfast in saying he will not do that. Can the report and can Prime Minister Blair give him cover to make an effort? They could. And that's one of the interesting questions for the president right now.

If you have such a meeting and Iran and Syria don't change their behavior, then it comes back to the basic fundamental question, what can the United States do with the help of its ally, Great Britain -- which is already eying the door, Heidi.

COLLINS: Right.

KING: Talking about getting its troops out of Iraq by next year. But what can the United States do to fundamentally, essentially, change the pieces on the chess board when right now, just about everybody concedes we are losing the game. And that is what the Iraq Study Group is trying to encourage the president, to consider a redeployment of the troops, to reconsider some new pressure on the Maliki government.

Again, the White House position is, they have been trying to get progress. They've pressuring the Maliki government in private.

COLLINS: Right.

KING: If you pressure it too much, it might collapse. And then what do you get? This is a huge problem for the president. And he says he will take these recommendations seriously and within several weeks, we assume, we will know which ones he will implement. And which ones he will say, sorry, I don't think that will work.

COLLINS: The whole world is waiting to see what his decisions will be. That's for sure. CNN Senior Political Correspondent John King. John, thank you.

HARRIS: Continuing to talk now about the findings in the Iraq Study Group report, it's being debated right now in Washington. Let's take a look at a live picture right now of the Armed Services Committee, meeting with the co-chairs of the Iraq Study Group. Secretary Baker and Congressman Hamilton, Senator Cornyn, questioning the co-chairs right now.

It is being debated in Washington and the findings of the study group's report seemingly being treated with indifference in Baghdad. Mere words on paper, carrying little weight in a country that has been scarred by horrific violence.

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