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Hill Hearings Focus on Bush War Policy

Aired January 12, 2007 - 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, NEWSROOM: Good morning, everybody. I'm Heidi Collins.
TONY HARRIS, CNN ANCHOR, NEWSROOM: And I'm Tony Harris for the second hour in the NEWSROOM this morning. Stay informed. Here's what's on the rundown. The new defense chief, the chairman of the joint chiefs, combative questions about the president's new Iraq strategy, live to Capitol Hill.

COLLINS: Iraqi troops in charge of security by November. That's the president's goal. Realistic? We talk with a man who trained the Iraqis to be warriors.

HARRIS: Snow in the Rockies, ice storm on the plains, winter gearing up for another numbing shot at the central U.S., deep freeze on Friday, January 12. You are in the NEWSROOM.

At the top, an uphill fight on Capitol Hill, another day, another congressional hearing for the president's new plan for the Iraq war. Marching into the legislative battle, Defense Secretary Robert Gates and Joints Chief Chairman Peter Pace. The Hill, a political minefield for the plan today. The latest from CNN congressional correspondent Dana Bash. Dana, good morning to you. I'm wondering, what have we heard to this point?

DANA BASH, CNN CORRESPONDENT: Good morning, Tony. The hearing has actually just started a short while ago. We are still hearing the opening statements from the panel. We heard already from the defense secretary. Now we're hearing from the joint chiefs chairman. But before they got to speak, we did hear opening statements from the new Democratic chairman of the Armed Services Committee, Carl Levin, as well as the new ranking Republican and that is John McCain of Arizona. In listening to their two statements, it really does set the battle lines, if you will, on the political fight over the president's new plan.

Start with the Democrats, Senator Carl Levin has long been a proponent of taking troops out of Iraq, an opponent of putting more troops into Iraq. So he began this hearing by making it clear he had many unanswered questions. He thought, for example, how this Iraqi government is going to be up to the task of supplying the security and forces that are needed to make this kind of plan work, in general. And also, he tried to make clear, in throwing some quotes from one of the president's former commanders, General John Abizaid back at this panel, saying that many in the military believe that sending more troops is the wrong idea, because it just delays the Iraqi's ability to stand up for themselves. (BEGIN VIDEO CLIP)

SEN. CARL LEVIN (D) MICHIGAN: For America to supply more troops while the Iraqi leaders simply supply more promises is not a recipe for success in Iraq. Telling the Iraqis that we will increase our troops to give them yet more breathing space will only postpone the day when Iraqis take their future into their own hands and decide whether they want to continue to fight a civil war or to make peace among themselves.

(END VIDEO CLIP)

BASH: Now, in yesterday's hearing on the Senate side, when Condoleezza Rice, the secretary of state was appearing, we heard no Republicans come out in support of the president's plan. That is already different today because, as I said, Senator John McCain has already spoken. He has been one of the earliest and most vocal proponents of sending more troops to Iraq. And what he said this morning is that he wants to know whether or not enough troops are going to be sent, extra troops, in order to help quell the violence there. He says that it is imperative that it's not just a surge, temporary surge, but enough troops and that are there and that long enough, that they stay long enough in order to do what it takes. He also challenged some of his Democratic and even Republican critics of his idea, saying that if they want to pull troops out of Iraq, they should have a plan after that happens.

(BEGIN VIDEO CLIP)

SEN. JOHN McCAIN (R) ARIZONA: If we walk from Vietnam, if we walk away from Iraq, we'll be back, possibly in the context of a wider war in the world's most volatile region. I believe that those who disagree with this new policy should indicate what they would propose to do if we withdraw and Iraq descends into chaos.

(END VIDEO CLIP)

BASH: That is the kind of thing we're likely to hear from a couple of other panel members, the kind of thing that we simply have not heard in the past day of these hearings, support for the president's plan, by and large. What we have heard so far is some outright criticism from Republicans and at best, skepticism of the president's plan to send more troops to Iraq. Tony.

HARRIS: Dana, there was an announcement a short time ago that several senators are on their way to Iraq. What can you tell us?

BASH: That's right. As CNN reported in the last hour, first Senator Hillary Clinton, who is actually on this panel and would normally be one of those questioning the panel, she is on her way to Iraq. She is heading there as part of a congressional delegation. She is going along with another member of the Armed Services Committee, Senator Evan Bayh. They're going to go to Iraq and Afghanistan at a certainly an interesting time in the political debate here for her to be going there.

HARRIS: Congressional correspondent Dana Bash for us, Dana, thank you.

COLLINS: Iraqi leaders miscalculated but they're finally getting the message. That's the assessment from the U.S. ambassador to Iraq. In an interview with CNN's Michael Hall, Zalmay Khalilzad echoes this warning from the Bush administration. Americans are losing patience with the situation in Iraq.

(BEGIN VIDEO CLIP)

ZALMAY KHALILZAD, U.S. AMBASSADOR TO IRAQ: They have a situation in which the president is offering them a helping hand, to strengthen their ability to deal with the situation, first to bring the Baghdad situation under control. They have made some firm commitments and there is doubt over there in the world and in America about whether the Iraqis will do the right thing, whether they will do what's necessary. And I have communicated to them, that that is the situation and that they shouldn't miscalculate, that patience is running out.

MICHAEL HALL, CNN CORRESPONDENT: Do you think the president has gotten through?

KHALILZAD: I hope so. I mean one could not be clearer. And also, they watch the news and they know what the political situation is on Capitol Hill. The president will have a hard time convincing the Congress. He's put a lot on the table there, in terms of his own prestige and the reputation of that administration, but he believes firmly, as I do, it's very important to help Iraqis succeed. But Iraq cannot succeed if the Iraqi leaders do not do what they have to do.

(END VIDEO CLIP)

COLLINS: Khalilzad says, some Iraqis, pardon me, see if I can find my place here. Some Iraqi leaders that is, assumed American support would go on indefinitely. That, he indicates, was a blunder on their part.

HARRIS: And let's get you back to TJ Holmes now in the NEWSROOM and TJ is following another developing story. TJ, this one is particularly disturbing.

TJ HOLMES, CNN CORRESPONDENT: Yes, bizarre here. We were hearing from Chad Myers a little bit ago about delays at Hartsfield Jackson international airport here in Atlanta. That delay, it wasn't a weather one. It was due to security. We now know what that issue was and that's because a body has been found in the wheel well of an arriving Delta flight. This was Delta flight 35, coming from Dakar, Senegal in western Africa, landing in Atlanta, scheduled to land a little before 9:00 a.m. Eastern time. The plane landed just fine, but a dead body found in the wheel well of this flight.

Again, the plane landed pretty much on time, on schedule, landed safely and normally, except for this strange occurrence here. They taxied to the gate and this body was found. Authorities now involved in this, Federal, state and local, all involved in this investigation now. The public information officer at the airport has confirmed this information, but says they don't know just yet if the body is that of a man or a woman, but just a strange, certainly unfortunate and disturbing occurrence at Hartsfield Jackson international airport where a dead body has been found in the wheel well of Delta flight 35 which was arriving from Dakar, Senegal. But it has landed. We're trying to certainly get more information on this and find out what Tony, a strange one here.

HARRIS: How does that even happen? TJ I appreciate it.

HOLMES: All right, thanks Tony.

COLLINS: Another day on Capitol Hill, as House Democrats push ahead with their first 100 hours agenda. This morning a plan Democrats say will reduce prescription drug costs for Medicare patients. Our Brianna Keilar is keeping tabs on the House and joins us now live. Brianna, where does this measure stand at this point? It's been pretty controversial.

BRIANNA KEILAR, CNN CORRESPONDENT: No it certainly has Heidi. Seniors on fixed incomes struggling to pay the ballooning costs of their prescription medications. We know this is an ongoing problem. And right now, prescription drug prices for seniors with Medicare are determined by competition between drug companies. Before the House today, this bill that would instead let the government negotiate drug prices. The bill is expected to pass. But some experts are questioning if it would actually save seniors any money and the Bush administration has threatened to veto it. So here's the argument from both sides from the House floor this morning.

(BEGIN VIDEO CLIP)

REP. CHARLES BOUSTANY JR., (R) LOUISIANA: When you scratch the surface, it becomes very clear that this legislation will lead to price controls and rationing. Furthermore, the idea of government negotiation is a joke. Mr. Speaker, this limits seniors' choices. It's not going to reduce cost and once again, it's the heavy hand of government telling people what's best for them.

REP. JOHN SARBANES (D) MARYLAND: The current Part D program has left our seniors feeling anxious and confused. What they cannot understand, Madam Speaker, what no one can understand, because there is no rational explanation for it, is why the Medicare program has been prohibited from negotiating for lower drug prices.

(END VIDEO CLIP)

KEILAR: Mike Leavitt, secretary of Health and Human Services has come out in staunch opposition of the Democrats plan. He says among other things, it could limit drug choices for seniors. In an op-ed in the "Washington Post" yesterday, Leavitt said Medicare provides access to the broadest array of prescription drugs, including the newest drugs, but price negotiation inevitably results in the withholding of access to some drugs to get manufacturers to lower prices.

Now another stumbling block, Heidi, the nonpartisan Congressional Budget Office said Wednesday that, if this bill becomes law, seniors probably won't be paying any less for their meds than they are now.

COLLINS: That's interesting. Brianna, we know that the House is expected to be able to steer this legislation through, but it has to go onto the Senate as always. How is it expected to fare there?

KEILAR: This could be another hiccup Heidi. Key Democrat, the chairman of the Senate Finance Committee Max Baucus, indicating that he might not or that he won't endorse this bill. What he's saying is right now the government cannot negotiate. It's prohibited from negotiating drug prices. He's saying allow them to negotiate drug prices but don't make it their only tool. Allow Medicare to negotiate drug prices, also using competition between drug companies, which is the only way that they do it right now Heidi.

COLLINS: Brianna Keilar on the story for us today, thanks Brianna.

HARRIS: Let's get another check of weather. The situation...

COLLINS: I don't know. I know we have to watch it. It's getting nasty Chad.

CHAD MYERS, CNN METEOROLOGIST: It is getting nasty. There's a situation - this happens maybe once a year on a small scale, but maybe once every 20 years on this scale. When cold air gets to an area before rain tries to get there and the cold air cannot get pushed out. It is heavy. It is coming down from the north with a wind and the rain, even though it's going to try to push it back doesn't have enough energy, doesn't have enough force because hot air kind of rises up over the top of the cold air like a hot air balloon, 28 degrees right now in Oklahoma City and I'm watching an (INAUDIBLE) what we call 203, one of our routers here.

This is KWTV in Oklahoma City. You can tell, it's now raining and it is 28 degrees there. That's going to be trouble. The roads are still OK, because it's still surfaced with the earth. The earth is still warm from a number of days in the 60s there in Oklahoma City, but the bridges are now beginning to ice up. There's no way the salt trucks can get to all of them right now there in Oklahoma City as the rain moves in and very quickly the ground isn't going to support that rain any more either. It's going to freeze up, already sees grass now and some of those bridges getting rain on them and even that fence, they zoomed in on that fence. There was some water freezing on that fence so be careful out there, Oklahoma City.

And this is really just the beginning. You're going to get it in Tulsa. You're going to get it in St. Louis. You could even get it in northern Ohio. That's how long this storm, this is a long duration storm, actually, two storms, one that will come today and spread rain all the way up to Ohio, that could be freezing rain, right through St. Louis as well. Then it stops for about 24 hours and then it starts again on Sunday. Another secondary ice storm on top of the one that you've already had, probably spreading a little bit more ice, just maybe 100 miles farther to the south than the first one did. There is some snow. Most of it's in Rocky mountains, great for the skiers, no problem for Denver, no big snowstorm there, but we could see a band of ice, even across New York state for Monday morning's commute, which may be not even happening for some folks by then. Back to you guys.

HARRIS: I'm just nervous hearing the description of all of this.

MYERS: There could be a million people without power by Monday morning.

COLLINS: You are kidding?

MYERS: No.

HARRIS: All right Chad. We'll check back with you.

COLLINS: Thank you Chad.

HARRIS: Still to come, an ambitious goal for Iraqi forces, can they take over security of the country by November? We'll talk with an Army officer who has helped train Iraqi troops ahead in the NEWSROOM.

COLLINS: A gun battle outside, peace talks inside, the bloody road to recovery in Somalia, ahead in the NEWSROOM.

HARRIS: War of words. Let's call the whole thing - let's call it. I don't know, what do we call it? Our Jeanne Moos has her take. That's ahead in the NEWSROOM.

ROB MARCIANO, CNN METEOROLOGIST: And I'm Rob Marciano in Steamboat Springs, Colorado, where the snow is falling, along with the temperatures. A live report on this latest winter storm across the Rocky Mountains coming up in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: TJ Holmes in the CNN NEWSROOM with the strange story of the morning so far. TJ.

HOLMES: Yeah. A dead body found in the wheel well of a flight. We were hearing about flight delays at Hartsfield Jackson international airport earlier, didn't exactly know exactly why. Of course, flight delays for all kinds of reasons and this is not one you hear often. This flight was coming - this was Delta flight 35 from Dakar, Senegal in western Africa, made the long trip to Atlanta, arrived on time. It arrived normally, safely. It taxied to the gate and a dead body was found in the wheel well. Now no word yet on even if this is a man or a woman's body that's been found, no word on exactly how the demise came about, also no word on who this person was, how they got there or anything else, just know from the PIO at the public information officer at Atlanta, Atlanta's Hartsfield Jackson international airport, that yes, in fact, a dead body was found, don't know what the process was, don't know if the passengers got off the plane just fine normally or if they're being held trying to get more information on that, if they're being questioned or anything else in this regard, if they might have any idea who this person might be. But again, the flight, Delta flight 35 coming from Dakar, Senegal, landed here in Atlanta at around 8:50 on time today and a dead body was found in that wheel well, a strange story, still story here, just trying to find out who this person is and what in the world might have been going on, Tony.

HARRIS: How this happened. This is not impacting on the flights in and out of the airport. Everything else is clean and green, isn't it?

HOLMES: Not clear on that. We did hear that it was 30 minute flight delays earlier due to security. Not sure how many other flights related to Delta might have been held up because of this. You could imagine that possibly yeah, this big of a security issue, that maybe so, there were some other issues, but not clear on that but yeah, at least we knew there were some 30 minute flight delays at the airport earlier Tony.

HARRIS: TJ, you would call this a security issue that's for sure.

HOLMES: Yeah.

HARRIS: TJ thanks.

COLLINS: Pretty as a snow globe, early morning snow falls on a Colorado ski resort, nice for skiers. Look at that. It's gorgeous, but a trouble maker elsewhere. Our Rob Marciano is in Steamboat Springs, strategically placed. Rob, tell us what's happening there and with the rest of the snow. I think we're hearing about it in Las Vegas too.

MARCIANO: This storm, as you're mentioning, Heidi, really going to affect the entire United States, the cold air diving as far south as you mentioned as Las Vegas, as far south as southern California. Now, it's getting itself together across the Rocky Mountains here. In Steamboat Springs, Colorado, the snow has begun to fall. The temperatures have fallen as well and that may very well be the bigger story. Across the southeast corner of this state, ranchers have been having problems, as you know and still, there are some people without power.

(BEGIN VIDEOTAPE)

MARCIANO (voice-over): Rancher Tom Verquer and his son, TJ have finally reached their starving cattle after plowing through seven foot snowdrifts. A life of ranching has taught him how quickly a blizzard can devastate his livelihood but he says he has to stay focused.

TOM VERQUER, COLORADO RANCHER: We're more-or-less eternal optimists and gamblers at heart. We kind of -- it's a lifestyle that a lot of us have grown up with. We're kind of used to it. We like it. We endure it.

MARCIANO: This week, President Bush declared a state of emergency in 13 Colorado counties hit hardest by recent blizzards, making them eligible for Federal aid. The National Guard dropped 3 thousand tons of hay to cattle in remote southeast Colorado; 5,000 head of cattle have already been lost and that number of dead is expected to rise.

DON AMENT, COLORADO AGRICULTURE COMMISSION: We were appreciative of that airdrop and all that stuff, but that was one feeding for these animals. They got to be fed every day.

MARCIANO: At the national western stock show in Denver, the recent blizzard was a hot topic.

RICHARD DIELLA, COLORADO RANCHER: The ranch and business world, we're all friends; we're buddies. It's devastating. The talk in the barn is what's happening to these guys in eastern Colorado. How are they doing?

MARCIANO: Fourth generation rancher Garrett Werth from Quincer (ph), Kansas knows all too well. He still has no power back home.

GARRETT WERTH, KANSAS RANCHER: We got a lot of generators and stuff. You just got to keep moving them around and trying to keep the cattle fed and everything. It's a pain; it's rough.

MARCIANO: More than 8,000 customers in Kansas and Nebraska are still without power. Colorado ranchers like Tom Verquer feel fortunate that their power has been restored. But with another storm on the way, preparation is his only hope.

VERQUER: There's one lady that's still the boss. That's Mother Nature.

(END VIDEOTAPE)

MARCIANO: Amen to that. We live by that. Mother Nature is the boss across the southeast corner of the state. Winter storm watches are up for snow and freezing rain. Here in the high country, all snow, temperatures right now about 9 degrees. There are some winter storm warnings posted especially for the San Juan down across the southern part of the state. And avalanche will become an issue, not so much today, but later tonight when we start to pile up the snow on top across the ridges and get that wind loading (ph) that southwest flow over the top of the ridges in these northeast facing slopes tomorrow will likely see a higher avalanche risk. But obviously here, it's a bit of a boon. They could use the snow, will take it. Avalanche patrols will likely be out in full force tonight and tomorrow morning. Heidi, back to you.

COLLINS: Boy, the stories that we have seen coming out of Colorado with the avalanches and the cattle and the power and on and on and on. Quickly, Rob, I know it's hard to look too far ahead with weather, especially in the Rocky Mountain area, but relief possible after this weekend?

MARCIANO: Relief here? Well, the cold air is going to sit around for a while. This is the cold. It's been sitting as Chad will tell you in Canada, kind of recharging the battery. Finally, it's been released down into the lower 48 and it's encompassing pretty much or will encompass much of the country. So it will be slow to moderate here. And I think the bigger story will shift eventually into the plains, where that ice storm is occurring, today, tomorrow, Sunday and probably into next week. It's going to be a huge weather and news story. COLLINS: All right, well, Rob, I know you'll be following it as well. So thanks so much, Rob Marciano in for us from Steamboat Springs, Colorado. Thanks.

HARRIS: There are thousands of reasons some U.S. troops in Iraq don't want their tours of duty extended. We'll give you one and let you know what it's like for a soldier's wife. A cutie. That's ahead in the NEWSROOM.

COLLINS: A mother/daughter moment, just ahead.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I've waited so long for my adoption to be final and it means a lot to me that it's finally able to be done.

(END VIDEO CLIP)

COLLINS: The adoption that took 14 years to complete. Meet the happy family in the "NEWSROOM.

HARRIS: Soccer star David Beckham, trading the old world for the new. Was that a sign?

COLLINS: No.

HARRIS: What was that?

COLLINS: Move on.

HARRIS: Matt Collins, I'm calling you right now. Beckham going Hollywood, details -- controversy in the NEWSROOM.

COLLINS: And personal finance editor, Gerri Willis. Gerri, save me.

GERRI WILLIS, CNN CORRESPONDENT: I like those pictures. They're very attractive. I think everyone would agree.

COLLINS: What are you talking about today? I know we have e- mails.

WILLIS: You have questions on debit, credit card debt, mortgage debt, credit scores. We have all the answers, next on stock tips.

(COMMERCIAL BREAK)

HARRIS: About an hour into the trading day, Friday, get away day. Heidi, the Dow, let's call that Dow slightly mixed. I'm waiting for a number on Nasdaq. Where is the Nasdaq so far this morning? Do we know? Hanging on, hanging on, hanging on, all right. The Nasdaq? Up? OK, great. We will check all the business headlines and keep an eye on the Dow, Nasdaq throughout the day here, in the NEWSROOM.

COLLINS: Home buying, credit cards, retirement accounts, just some of the topics tackled today by CNN's personal finance editor, Gerri Willis. She joins us from New York to answer viewer e-mail, viewer e-mail on Friday. You ready?

WILLIS: Happy Friday Heidi. Hit me with the first one.

COLLINS: OK. I am 27 years old and want to buy a house by age 30. I am starting to finally put a dent into my credit card debt. However, I won't have money for a house down payment. Is it so terrible to buy a house with no money down? Pretty tough to do isn't it?

WILLIS: Well, yeah, you can buy a house with no money down these days. They let you put zero percent, 10 percent, 20, whatever you want to put down. But it's better if you have some equity in that house when you get started. Putting no money down on a home. They let you put 0 percent, 10 percent, 20 percent, whatever you want to put down. But it's better if you have some equity in that house, when you get started. Putting no money down in a home is not advisable. Remember, it's not only the down payment you're going to need, but also closing costs. Make saving a priority and have some of your paycheck automatically funneled into a savings account or CD, so when it comes time to buy, you'll be ready.

HEDIE COLLINS, CNN ANCHOR, CNN NEWSROOM: Yes, and she has a good plan, three years to do it, hopefully.

WILLIS: Yes, she'll probably be in a great market by that time.

COLLINS: Good. Well, the next one coming to us from Bon. "I have just paid off seven credit cards, would it be wise to close them now? Will this raise my credit score or lower it?"

WILLIS: Wow. Congratulations, first of all. It is in your best interest to close some of those cards. Let's face it. As a practical matter, you don't want to be tempted to run up your debt again. And although closing these accounts won't automatically raise or lower or FICO score, you should know mortgage and auto lenders still gauge your credit risk by your credit limit. Closing some of those cards will reduce that credit limit.

For more on what affects your credit score, you can go to myfico.com. Lots of good info there.

COLLINS: Quickly, Gerri, I just wonder about the theory of only having one credit card to use for everything?

WILLIS: That's great. I think it's fine to have two, or even three. Two is great. One is even better. Look, at the end of the day, you really need to be able to show that you can pay down that debt. It does matter that you have credit out there that is not being used.

COLLINS: All right, onto the next one, this is coming to us from Ray in Illinois. He asks, "What is an old-fashioned home equity loan, and how does it differ from a home equity line of credit?"

WILLIS: Good question from Ray in Illinois.

You know, a home equity loan is just a conventional second mortgage. Your interest rate is fixed, and the monthly payments you make each month are the same. It's meant for one-time debts, like college tuition or paying off a big medical bill.

And HELOC, that's a home equity line of credit, it works like a credit card. It carries a variable rate, you can tap into it whenever you need to. You can adjust your monthly payments with a HELOC and you'll be able to benefit if rates go down.

Now, a HELOC can be a great way to pay for debt that comes in stages, like home improvements or emergency funds. But, Heidi, with both of these products, you're tapping into your equity, in your house, and you'll have to pay it back.

COLLINS: This is coming to us from Texas, A. Turner. "Can I take money from a taxable account and put it into an IRA, to take advantage of the deduction? Then, can I put the money back into the taxable account after I've gotten my refund? Sounds good!

(LAUGHTER)

WILLIS: This is tricky. You're all about the taxes. The sad fact is you're going to have to pay taxes on your money sooner or later. Whether you shelter it in an IRA or pay taxes on it now, it's really up to you. But keep in mind that if you're younger than 59 and a half years old, you'll have to pay taxes, plus -- plus, a 10 percent penalty if you withdraw your money from that IRA.

Heidi, I just want to remind your viewers, because we get such great questions from them. Send and e-mail to toptips@cnn.com with any of your financial questions. We answer them right here every Friday.

COLLINS: All right. Gerri Willis. Thank you. Should we be asking you what's coming up tomorrow?

WILLIS: Yes, Saturday morning, "Open House", 9:30 a.m. We're going to be talking about exotic loans, mortgages that are dangerous out there, that you need to know about. It's a great show. We'll tell you how to get the home gym of your dreams on a budget. You'll like that.

COLLINS: Home gym of my dreams? What about the physique of my dreams?

WILLIS: Well, you have to get the gym first, and work up. Should we take questions on soccer next week?

COLLINS: Yeah. And I was looking for the e-mail from David Beckham. I didn't find it. We'll keep trying.

TONY HARRIS, CNN ANCHOR, CNN NEWSROOM: This is outrageous. This is.

COLLINS: Our Personal Finance Editor Gerri Willis. Thank you, Gerri.

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

HARRIS: The battle over the president's new war plan, it's going on right now on Capitol Hill. Defense Secretary Robert Gates back on the Hill and on the hot seat, this morning; he appears before the Senate Armed Services Committee.

Yesterday, Gates and other administration officials were grilled by lawmakers opposed to sending more troops to Iraq. Gates says the U.S. will know within a couple of months whether the additional troops are making a difference. He says the new strategy is a pivot point in the war.

And we are just learning, here at CNN, that the Senate Republican leadership, the Senate Minority Leader Mitch McConnell, John Boehner, Trent Lott heading to Camp David to talk with the president this weekend, no doubt to talk about Republican support for the president's Iraq war strategy. So, again, the Senate Republican leadership to visit with the president this weekend at Camp David to talk about Iraq.

COLLINS: The 1st Brigade of the Minnesota National Guard is among the troops being added to the Baghdad mix. CNN's Keith Oppenheim talks with a soldier's wife who is trying to stay strong.

(BEGIN VIDEOTAPE)

KEITH OPPENHEIM, CNN CORRESPONDENT, CNN NEWSROOM (on camera): Where's dad? Yeah, that's dad.

(Voice over): Twenty--month-old Anna Fox can easily identify her father, Jared in a photograph. The truth is she mostly knows him from pictures. For two thirds of her young life, Sergeant Jared Fox has been gone, serving as an engineer with the U.S. military in Iraq.

(On camera): How are you doing?

CONNIE FOX, SGT. JARED FOX'S WIFE: I'm doing OK. I stay strong because that's what our family needs.

OPPENHEIM: For Jared's wife, Connie, staying strong is about to get tougher, that's because Jared is a member of Minnesota National Guard 1st Brigade and Connie just learned Jared's year-long stay in Iraq will be extended by up to four months.

(On camera): You accept this, but the pain of separation is just below the surface?

FOX: Definitely. It's always there. You know, you're a single parent, with a husband. Some days, it's like, why isn't he here? But you always remember, I am very proud of my husband. He's a soldier. That's what he does. He's good at it.

OPPENHEIM: The change in plan has been all too much for Tim Pawlenty, the Republican governor of Minnesota, who has been critical of the president's plan to send more troops and especially upset the Minnesota Guard is staying longer. GOV. TIM PAWLENTY, (R) MINNESOTA: That's not the general understanding that our soldiers had, or that their families had. It puts a very significant burden on them. It's unexpected. And it's extremely frustrating.

OPPENHEIM: Connie Fox manages her frustration by focusing on the positive; she thinks back when Jared came home on leave during Thanksgiving, and her daughter, Anna recognized daddy.

FOX: Seeing her just go straight to him at the airport.

OPPENHEIM (on camera): Knowing that's her father?

FOX: Yes.

OPPENHEIM: That's great.

FOX: Completely worth it.

OPPENHEIM: You have to keep your eyes on the prize, when he comes back?

FOX: That's right. Just waiting.

OPPENHEIM: Keith Oppenheim, CNN, Foley, Minnesota.

(END VIDEOTAPE)

HARRIS: Yeah, you're number one. Still ahead in the NEWSROOM, an ambitious goal for Iraqi forces. Can they take over security by November? We'll talk with an Army officer who has helped train Iraqi troops in the NEWSROOM.

COLLINS: And it took a while, but they're finally a family.

UNIDENTIFIED FEMALE: For the first time, I'm legally a mom. For the first time I can really use that title now, "mom". I'm mom forever and ever.

COLLINS: The adoption that stretched over 14 long years, finalized. Family time in the NEWSROOM

(COMMERCIAL BREAK)

COLLINS: I want to remind you of something in progress right now, the U.S. Senate Committee, Armed Services Committee, that is, Defense Secretary Robert Gates testifying before them. I want to show you an exchange between Democratic ranking member Carl Levin, from Michigan, asking about the militias and how they will be handled with the president's new plan in Iraq.

(BEGIN VIDEOTAPE)

SEN. CARL LEVIN, (D-MI), ARMED SERVICES CMTE.: Is there a timetable to take on the militias, for instance? ROBERT GATES, U.S. SECRETARY OF DEFENSE: Well, the military operation, I'll defer the General Pace, but the military operation, their first additional brigade as I understand it, is to move to Baghdad around the 1st of February. And our first with brigade will get there about the middle of January. So my understanding, and I'll ask General Pace to comment, is that the operation itself will probably begin with some seriousness, around the first week in February.

LEVIN: And in terms of saying, to the militias, they're going to disarm those militias and they're going to take them on with robust rules of engagement, do we have a specific timetable for that?

GATES: Not that I know of. But we will move immediately. The first targets will be the mixed neighborhoods, but it is clear that includes neighborhoods that are majority Shia. So, they will be moving on those -- there will be no safe havens in this. I think it's fair to say they will start with the mixed neighborhoods first.

(END VIDEOTAPE)

COLLINS: We continue to monitor the Senate Armed Services Committee hearings there with the Chairman of the Joint Chiefs Peter Pace and Defense Secretary Robert Gates. Right now, what is happening is Senator John McCain is questioning Defense Secretary Robert Gates. As I said, we will continue to monitor it and bring any exchanges to you that we see fit.

HARRIS: Iraqi troops taking over security by November. That goal part of the president's new Iraq strategy, is it realistic? Is it realistic? Can the U.S. train enough Iraqi troops in time? Now joining us now from Washington with some insight Lt. Col. Carl Grunow, he's a congressional liaison officer, who also spent a year training Iraqi troops.

Carl, great to see you, again.

LT. COL. CARL GRUNOW, U.S. ARMY: Great to see you, too.

HARRIS: Let me pick up on something we heard from Secretary Gates, talking about moving a brigade to take on the militias. That is a huge task, as we all know. Can you imagine the Shiite dominated Iraqi security forces, the army, the national police, the regular police, marching into Sadr City and taking on the Mehdi army?

GRUNOW: Sure. Although, I'd like to not talk about it as taking on the Mehdi army. I'd like to talk about it as displacing them. Whenever we went, Iraqi army, U.S. Army, whenever we went into a neighborhood that had problems with militia, and we established legitimate authority, with the Iraqi army, then the militias would fade into the background.

Keep in mind, Sadr and his Mehdi militia did not exist before 2003. They grew up out of a situation of total insecurity. They had to protect themselves. And they had to provide their own security and that's how the Mehdi militia grew. We now have a chance to establish legislate authority, as we have done in past in certain areas, but now we have a chance to sustain it. The reason for these militias should go away.

HARRIS: So, I talked about the Iraqi security forces going into Sadr City. What would be, in your mind, the proper role for U.S. forces?

GRUNOW: Well, you know, the Iraqis will shoulder most of the load of taking care of business in places like Sadr City. Advisors will be there to make sure things don't get out of hand. The Iraqis have courage, they're willing to go in and do the job. But sometimes --

HARRIS: You believe that?

GRUNOW: I do believe that. I saw it first hand. I saw Iraqi leaders facing up to situations that were dangerous. They don't lack in encourage. They sometimes lack in confidence this government will work out, which is why the plans of the political solution is paramount.

In order to have loyalty to this new government, you have to have some confidence in it. We take it for granted in the United States. That's not yet the case in Iraq.

HARRIS: You know what, if you would, re-cue that video. I want to play that in just a moment of the operation. I believe this was Haifa Street in Baghdad, earlier in the week. But I want to pick up on the point you just made. Do you believe that the Iraqi security forces really will fight for their country, or are we training them to fight for their sect?

GRUNOW: Again, this whole problem of loyalty springs from the existing insecurity in Iraq. If the Iraqi soldiers will, I believe, and I saw this well, give their loyalty to the Iraqi army, if they have confidence in it and confidence it will work as an honest broker.

In the summer of '06, when I left, the American Army was number one, in terms of being trusted as an honest broker with no ax to grind, no particular sect to support, the Iraqi army was number two. They were growing in terms of the confidence people had in the Iraqi army. They thought, you know, we can trust these guys. They will do the right thing. The police are behind and hope they will gain in credibility as well.

HARRIS: Hey, Carl, take a listen to this, and I want you to react and respond to this. This is Secretary Gates just a couple of moments ago, testifying before the Senate Armed Services Committee and he's responding to a question about the commitment of Iraqi forces, this very point we're discussing right now.

GRUNOW: Sure.

(BEGIN VIDEO CLIP) GATES: Military officers to lead this campaign, that they have promised to do by a specific date, they have done so far. I think the feeling on the part of those who have talked to Prime Minister Maliki, and I think it's important to stress that the president and ambassador and General Casey have talked not just to Maliki about these commitments. They've talked to President Talabani, Vice President Hakeem (ph), they've talked to Vice President Hashemite (ph).

So it's the entire Iraqi government that embraced these commitments this time, as opposed to just Prime Minister Maliki, in the past. So, I think there is a sense of confidence on the part of General Casey and those that are dealing directly with the Iraqis on this. That they have every intention of fulfilling their commitments this time.

(END VIDEO CLIP)

HARRIS: But, Carl, isn't there a bit of a disconnect? I think you alluded to it just a moment ago, a bit of disconnect between the government and Iraqi security forces, and issue of trust here, whether or not this government can actually get the job done, and lead?

GRUNOW: Yeah. I'd sure love to hear from my compadres that are over there now. In April of '06, when Maliki appointed the current defense minister, there was a fair amount of joy in the Iraqi brigade headquarters where I worked. They said, this guy is a former soldier, we trust him. He's a good man and we want to follow him. There was a yearning in that Iraqi headquarters for a government that would lead them.

I just hope -- you know, I'm not there now, and haven't been there for six months. I just hope this government continues to grow in strength and credibility, because they have an army that wants to follow them.

HARRIS: Did you, when you were in-country and you were training, did you ever have a sense you were training the Iraqis -- not to fight for their country, but you were training them to be more efficient fighters, in a sectarian war?

GRUNOW: You know, Tony, that's a great question, and it's a question as advisors we grappled with a lot.

I'll tell you a quick story, Captain Jassam (ph), a hero of the Iraqi army, an OPS officer that we trained, a very competent and credible guy, also lives in Sadr City, and he's a Shia. At a morning meeting the brigade commander was talking about having to reign in militias and get control of the Mehdi militia in a particular town.

And Captain Jassam (ph) spoke up, saying, hey, Sir, Sadr is a good guy. He ended violence in Sadr City. After the Samara mosque bombing, we protected -- or Sadr's militia protected Sunni mosques as well. So, here's this true believer, a Shia that is having trouble with his loyalties, but in reality, he just believes -- he wants security and he's willing to put his support to this brigade commander, if he can promise security. HARRIS: I'm sorry to do this to you, but I need a yes or no on this one. I have to squeeze this in. Are you worried the training mission will get lost in the combat mission moving forward?

GRUNOW: No, because the operational environment is a great training environment. You go outside the wire and you learn a lot. Sure, you'd like to learn lessons without the cost of lives, but it is also a great way to train outside the wire.

HARRIS: Lieutenant Col. Carl Grunow. Carl, great to see you. Thanks for your time.

GRUNOW: Thank you.

SUSAN LISOVICZ, CNN FINANCIAL CORRESPONDENT, CNN NEWSROOM: At the New York Stock Exchange, Ma Bell wants to raise the bar in its advertising with a Cingular marketing strategy. Details when NEWSROOM continues. You're watching CNN, the most trusted name in news.

(COMMERCIAL BREAK)

COLLINS: A couple of well-known brands are getting big makeovers. Susan Lisovicz is at the New York Stock Exchange to tell us about these changes, Susan, who needs no makeover.

LISOVICZ: It's interesting, because one of them is Cingular, who has the best PR advertising that it could get earlier this week with its sign-up with the iPhone with Apple, exclusive rights. But apparently, it parent company says it -- it needs a little work.

AT&T says it will start rebranding its Cingular wireless unit, as AT&T, in the next few weeks. This comes just two weeks after AT&T gained full ownership of the Cingular brand, through it's purchase of Bell South. The change will come in stages, of course both logos will appear in ads and customers bills. But AT&T says the Cingular name will likely disappear all together, by mid-year. And that means that orange jack will go away as well.

The change is a bit ironic. Three years ago, AT&T wireless customers found their cell provider morphed into Cingular after Cingular bought the wireless carrier. It can be very confusing, especially when it comes to AT&T, the baby bells, wireless and all of that. Very confusing over the last couple of decades, Heidi.

COLLINS: Yes, no question about that.

Pepsi, though, also making a big change. We see that a lot with soda companies.

LISOVICZ: When it comes to soft drinks, they're among the biggest advertisers in the world. Pepsi says it will unleash a series of new designs for it's cans and bottles starting next month. Pepsi products will have backgrounds with sports, music and fashion relate images, as the company tries to attract more teens and young adults.

As you mentioned, this is a big change in strategy. It is more than a century-long existence, Pepsi has fiercely guarded the packaging to its iconic cola. Changing it's look only 10 times. This year alone it will change more than 35 times.

Heidi, when Pepsi was invented in 1898, it was invented by a pharmacist. He named it Pepsi because he said it cures indigestion or dyspepsia.

COLLINS: Right. I thought that's a soda. Come on, soda is really Pepto-Bismol.

LISOVICZ: Exactly.

Let's turn to the markets. There is no indigestion on the markets. We're coming off a record high for the Dow yesterday. We're seeing a small rebound in oil prices and a warning for the chipmaker Advance Micro Devices, that is hurting, certainly chip stocks.

But on the plus side, investors are considering upbeat news on holiday shopping. The government says retail sales in December rose at the strongest peace in five months and we know December is a big month for retailers.

Checking the numbers, the Dow industrials are on the minus side, down 15 points. The Nasdaq is down just 1 point. There's a reason why Tony couldn't get the Nasdaq figure, by the way. You can't see it there. There's five more columns, three more columns on the Big Board. So, you can't see it in that close-up shot.

There you go, that's why Tony couldn't read it. That's the latest from Wall Street.

Big bucks for Beckham. Will LA ever be the same? Just ahead in the NEWSROOM, stay with us.

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