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Creative Sales Tactics; Drama for Obama; U.N. vs. Israel; Limited Access; The Political Veteran; Tiny Fuel Cells; Free Lexus with House

Aired January 07, 2009 - 12:00   ET

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

TONY HARRIS, CNN ANCHOR: Hello, again, everyone. I'm Tony Harris in the CNN NEWSROOM. And here are the headlines from CNN for this Wednesday, January 7th. Barack Obama drops by the White House for a power lunch with his predecessors. It makes for a rare moment in the Oval Office.
And a pause in Gaza today. Israel allows food and fuel into the territory, then resumes its offensive against Hamas.

You might call it government waste watcher. President-elect Barack Obama announcing a new position today, chief performance officer. He chose Nancy Killefer, director of a management consulting firm. Her job to make sure federal agencies aren't wasting your tax dollars. The president-elect says the goal is efficiency and fiscal discipline.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT-ELECT: Our problem is not just a deficit of dollars, it's a deficit of accountability, and a deficit of trust. So change and reform can't just be election-year slogans. They must become fundamental principles of government. And that's why the appointment I'm announcing today is among the most important that I will make.

During the campaign, I said that we must scour this budget line by line, eliminating what we don't need or what doesn't work and improving the things that do.

(END VIDEO CLIP)

HARRIS: The Obama transition team is paging our Dr. Gupta. CNN chief medical correspondent Dr. Sanjay Gupta approached by the Obama team about the U.S. surgeon general's position. Sources say Dr. Gupta he was in Chicago in November to discuss the position with the president- elect. In addition to his many jobs here at CNN, Sanjay is a practicing neurosurgeon. He also served as a White House fellow in 1997.

President-elect Obama part of a historic gathering this hour at the White House. He is meeting with President Bush and all three surviving former presidents. Talk about your power lunch. CNN's Elaine Quijano live from the White House with a preview.

And, Elaine, my understanding is before the lunch there was to be a private meeting between the president-elect and President Bush. ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: That's right. In fact, we're waiting to find out whether or not that meeting between President Bush and President-elect Barack Obama, a one-on-one meeting, has actually wrapped up. It should be wrapping up right about now. They slated no more than 30 minutes for that meeting.

But they'll be joined this hour in the Oval Office with all three living former presidents. Jimmy Carter, George H.W. Bush, and Bill Clinton. As to what they might talk about, Dana Perino, the White House press secretary, says it will likely include some discussion of what it is like to live inside the White House, but also, perhaps, some policy issues as well.

(BEGIN VIDEO CLIP)

DANA PERINO, WHITE HOUSE PRESS SECRETARY: I can't imagine that there would be a meeting today where they don't talk about the challenges in the Middle East. Every one of these presidents has dealt with the challenges there as they've evolved over time. And given that the economy is number one on everyone's priority list as well here domestically, I'm sure they'll talk about that as well.

(END VIDEO CLIP)

QUIJANO: Now, the White House said this is the first such gathering of its kind since 1981. The president, after getting their picture taken by a small group of reporters and photographers, will head off to the private dining room just off the Oval Office. And, Tony, we're told that they're slated to go about an hour -- Tony.

HARRIS: OK. Elaine Quijano for us at the White House, Elaine, appreciate it, thank you.

You know, a new poll shows that time has been kind to the former presidents. Their approval ratings are higher now than when they left office. Former President Jimmy Carter's approval rating is 64 percent now compared to 31 percent on the eve of the 1980 election. Sixty percent approve of former President George H.W. Bush's performance now, compared to 34 percent just before the 1992 election. The Clinton presidency gets a 69 percent positive rating now compared to 66 percent at the end of his second term.

The president-elect's $750 billion economic stimulus plan is getting attention on Capitol Hill today. House Speaker Nancy Pelosi is rallying Democrats on the Policy and Steering Committee. She wants the House to pass a bill by mid-February. Pelosi urged Democrats to focus on the big picture and not just the big price tag.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D-CA), SPEAKER: Nothing could be clearer than the fact that we need action and we need action now. A failure to act quickly can only lead to more job losses and more economic pain for Americans. If we act boldly and rapidly, we can begin to create new jobs and opportunities today and strengthen our economy, as you said, for the long run. (END VIDEO CLIP)

HARRIS: President-elect Obama says deficit spending in the trillions may be need for years to come to get the economy back on track. He is promising to bring spending back in line once the crisis fades.

Roland Burris appeared to move closer to an Illinois Senate seat today. But after a meeting with the Democratic leadership, it is clear he still has hurdles to jump. CNN's Brianna Keilar live at the Capitol.

And, Brianna, I think that's the operative statement here. There is still a lot of work to be done here.

BRIANNA KEILAR, CNN CORRESPONDENT: Still work to be done. But this is the headline, Tony. The Senate Democratic leaders who were once adamant Roland Burris will not be seated now really appear to have publicly opened the door to the possibility that he will.

Of course, we did hear Senate Majority Leader Harry Reid lay out some conditions of what would have to happen. And the big one is settling this issue of the missing signature from the Illinois secretary of state.

Reid pointing out that when the Illinois Supreme Court rules on this, as they are expected to do soon, you know, if they force the hand of the secretary of state and, force him to sign it, that obviously would be very palatable to the Senate, to Senate Democratic leaders.

And the other issue is when Roland Burris, tomorrow, as he's supposed to do, talk with Illinois state lawmakers, Democrats and Republicans about exactly what the situation was as he took this appointment and to -- basically just to make sure that it was on the up and up.

But what Harry Reid was very specific about was that even if this certificate of appointment is signed, even if all of these other things are taken care of, the entire Senate is going to have to vote on this appointment.

These Senate Democratic leaders facing tremendous pressure. They face pressure from, you know, constitutional law experts who have said that they really should seat him. And that trickled down to democrats here in Congress saying, you know, it's the law, you really should seat him.

And also, and perhaps most importantly, this became a race issue because, if appointed, Roland Burris would -- or if seated, Roland Burris would be the only African-American in the Senate. And that's something that Harry Reid addressed.

Here's what he said.

(BEGIN VIDEO CLIP)

SEN. HARRY REID (D-NV), MAJORITY LEADER: We know that there has been a lot of issues raised as to why we held this up. Well, it's obvious. We have a man who was arrested for trying to sell the office. Roland Burris, one of the first things he said to us, this is nothing that's racial, I understand that. So a lot of people tried to make this a racial issue, but Roland Burris has not, and will not.

(END VIDEO CLIP)

KEILAR: And the NAACP has come out saying that they support Burris and his attempts to be seated. We've heard from a couple of African- American congressmen from Illinois, one who said -- Bobby Rush, he said that this was a racist action to block Roland Burris being seated, and Jesse Jackson Jr., who had said that as this whole thing becomes racialized, the chances of Democrats hanging on to this seat in 2010, Tony, really diminish.

HARRIS: Yes, Harry Reid really appeared to be stung by that criticism. Accusations of race in this decision-making process. Brianna Keilar on Capitol Hill for us. Brianna, appreciate it. Thank you.

KEILAR: You bet.

HARRIS: Representatives of Israel's government and Hamas have been on CNN this morning talking about the situation in Gaza. We will hear what both sides are saying.

(COMMERCIAL BREAK)

HARRIS: Diplomacy, death, and despair. Day 12 of the Israeli offensive in Gaza. Grief stricken Palestinians using a lull in fighting to bury their dead following Israel's attack yesterday on the U.N. school. At least 40 civilians seeking shelter were killed. Dozens more were injured. The U.N. now demanding Israel back up its claims that militants were firing on Israeli troops.

Palestinian medical sources report more than 680 people were killed in Gaza so far. Many of them women and children, another 3,000 wounded. Israel says three civilians and seven soldiers have been killed in the conflict.

The Jewish state now says it welcomes a cease-fire plan from France and Egypt. But the proposal must hold Hamas rocket fire and prevent the militants from rearming.

Israel had planned to hold its fire for a brief period today, but the temporary cease-fire apparently didn't exactly go according to plan. Our Paula Hancocks following developments from the Israeli-Gaza border.

That three-hour cease-fire, Paula, got off to a pretty shaky start. Do we know why?

PAULA HANCOCKS, CNN CORRESPONDENT: Well, Tony, certainly we heard some gunfire, we think, and some explosions just after the cease-fire started. And then about two hours in, there was another small explosion. Of course, we're on this side of the border because the Israeli government won't allow us into Gaza. So it's difficult to tell what exactly happened. But just before the cease-fire ended, there was some more -- some more heavy gunfire. And we understand from the Israeli Defense Forces that they were retaliating. They were defending themselves against Hamas operatives who were firing on them.

Of course, no way of independently confirming that. But the fact is for the most part it did hold and we understand from Israel they managed to get 80 trucks of food, water, and medical supplies, and fuel into the Gaza Strip.

But the fact is within three hours you don't have the chance to distribute that to 1.5 million residents. The United Nations agency in Gaza says that it has about three quarters of a million to a million people depending on the United Nations for food aid.

Quite frankly, you cannot distribute that amount of food to that amount of people in just three hours. So the aid agencies are saying this is a great first step but you have to give us more time. And if you can do a three hour cease-fire, then why not a 24 hour cease-fire? Tony.

HARRIS: Will this truce for humanitarian efforts into Gaza -- will it continue tomorrow and the next day and the day after that or do we have any indication of that?

HANCOCKS: No, we're being told this is only going to be every other day. So three hours every other day quite simply is not enough to try and help 1.5 million residents in Gaza. And according to the U.N., some 1 million are without electricity, 750,000 are without running water.

So to be able to get the fuel that was allowed into the Gaza Strip today, to the power plants and to the water plants, you just can't do that in such a short amount of time.

HARRIS: CNN's Paula Hancocks for us. Paula, appreciate it, thank you.

Amid the fighting, talks aimed as a cease-fire. Israel says it will continue negotiations with Egypt and France. But the Israeli government insists certain conditions must be met before it agrees to any truce. I got details a short time ago from Israeli government spokesman Mark Regev.

(BEGIN VIDEO CLIP)

MARK REGEV, ISRAELI GOVT. SPOKESMAN: And the idea is to try to bring a sustainable quiet to the south. A sustainable quiet both for the Israelis on our side of the frontier and for the people of Gaza.

And the idea is it has to contain two vital elements. And you said them very briefly, but I'll explain them. One, you've got to get a total cessation of rocket fire, of all hostile fire from Gaza into Israel. You know, the people of southern Israel have been living for years under the gun of Hamas rockets. That has simply got to stop. We won't accept going back to where we are, where close to 1 million people are under the gun of Hamas. That's one.

The second point is, we've got to have an enforceable arms cutoff for Hamas. We don't want to see Hamas just rearm and then we'll have another explosion of violence four months from now, six months from now.

(END VIDEO CLIP)

HARRIS: Well, it appears Hamas is not quite ready to commit to a cease-fire with Israel. A senior political adviser for Hamas spoke just a short time ago with CNN INTERNATIONAL's Hala Gorani.

(BEGIN VIDEO CLIP)

HALA GORANI, CNN INTERNATIONAL ANCHOR: Hamas is still firing rockets. I mean, that's the reality on the ground. If a cease-fire can be achieved...

(CROSSTALK)

GORANI: No, but if a cease-fire can be achieved, both sides need to stop.

AHMED YOUSEF, HAMAS SENIOR POLITCAL ADVISER: Actually, the reality on the ground that our people dying and having -- the Israelis having genocide, actually, and we hope that the world community will do something to stop actually this aggression. Then the firing rockets will stop automatically.

But not now, while every minute we're being bombarded by the Israeli Apaches and F-16s. We are under attack and we have to defend our people.

(END VIDEO CLIP)

HARRIS: The international outcry growing louder with the escalating death toll in Gaza. A U.N. Security Council open meeting under way right now. Our Richard Roth is at the United Nations for us.

And, Richard, my understanding is any member state that wants to have a say or to have their voices heard on the situation in Gaza is being given an opportunity right now?

RICHARD ROTH, CNN U.N. CORRESPONDENT: That's right. And a representative from the nation of Iran is currently speaking. They are a key player, accused often of supplying Hamas with rockets to fire at Israel.

Now, many of the speakers today will be ling up in the camp of Hamas and the Palestinian people, and that usually happens when it comes to the United Nations' general membership. On the sidelines, Tony, the quest for a resolution by the Arab community to try to resolve this conflict. The U.S. -- U.S. officials, very reticent, not interested in going on with a resolution that might tell Israel there should be an immediate cease-fire.

What we might see at the end of this lull and this discussions as Secretary of State Condoleezza Rice is still here, maybe a statement where each side can claim that some expression was made. A lot of Arab ministers came a long way here. Secretary of State Rice, the European key foreign ministers from France and Britain are currently meeting the Arabs in a separate meeting with them.

You see some of the major Arab figures here. So the key players all in one big room right now, obviously going on the various resolution terms.

HARRIS: OK. CNN senior United Nations correspondent Richard Roth following developments at the United Nations for us. Richard, appreciate it, thank you.

President-elect Obama is reaching out to President Bush and his predecessors for advice as he gets ready to take office. What can they tell him that no one else can?

(COMMERCIAL BREAK)

HARRIS: Will you take a look at this? A reunion among the members of one of the world's most elite clubs, plus the president-elect, Barack Obama. Take it in and have a listen.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I want to thank the president-elect for joining the ex-presidents for lunch. I am -- one message that I have and I think we all share is that we want you to succeed, whether we're a Democrat or Republican, we care deeply about this country.

And to the extent we can, we look forward to sharing our experiences with you. All of us who have served in this office understand that the office itself transcends the individual. And we wish you all the very best. And so does the country.

BARACK OBAMA, PRESIDENT-ELECT: Thank you, Mr. President.

BUSH: Thank you all.

(CROSSTALK)

OBAMA: I just want to thank the president for -- I just want to thank the president for hosting us. This is an extraordinary gathering. All the gentlemen here understand both the pressures and possibilities of this office. And for me to have the opportunity to get advice, good counsel, and fellowship with these individuals is extraordinary. And I'm very grateful to all of them.

But, again, thank you, Mr. President, for hosting us.

(CROSSTALK)

OBAMA: From their successes.

HARRIS: That's quite a scene. Was President Clinton about to say something? OK. So we're moving on. Quite a scene. President-elect Obama is having lunch, we presume, at this time with President Bush and all three surviving former presidents. As CNN special correspondent and former Washington bureau chief Frank Sesno joins us to talk about the historic gathering.

Frank, that's -- look, that's a moment. That sent some chills here, OK? I'm just saying.

FRANK SESNO, CNN SPECIAL CORRESPONDENT: And here's what I noticed, OK?

HARRIS: Yes.

SESNO: Three presidents wore blue ties and two red. So, you know, it has changed.

(LAUGHTER)

HARRIS: Perfectly to my question. So Barack Obama wanted this meeting of the living presidents. President Bush arranged it. Talk to us about the importance of the moment beyond the obvious symbolism of seeing the former presidents together, Republicans, Democrats, talking the economy, we presume, the Middle East peace, and offering free advice back and forth.

SESNO: Well, first of all, clearly, it's a passing of the torch.

HARRIS: Yes.

SESNO: That symbolism should not be diminished in any way, shape, or form. But secondly, it's a bipartisan gathering where you hear a Republican president, who is not popular, as he is preparing to leave office, saying on behalf of all presidents they want this president to succeed.

That's of immense importance as we're seeing play out here in Washington the whole discussion and debate over how big the deficit is going to be, what Obama's going to do with the economy, the flap over Leon Panetta and various other things.

He wants to come in -- Obama wants to come in with some sense of goodwill, an era of good feeling and some bipartisanship. This isn't a bad way to get it started.

HARRIS: Yes, Frank, let me turn to a statement from the president- elect earlier this morning. He took a question about the situation in Gaza. And we heard, again, that particular refrain at this point that we only have one president at a time. And some are suggesting that his limited statements on the situation in Gaza are actually sort of deafening, equate the deafening silence and is creating something of a leadership vacuum. What's your take on that? SESNO: Well, my take on that is that the Middle East is and has been sort of the land mine. You know, you saw those presidents there. Every single one of those presidents has tried -- in the case of Jimmy Carter, made substantial progress obviously with the Camp David Accords. But most of them have tried and at least stubbed their toes or worse on the Middle East.

Obama wants to keep as much distance from the Middle East as he can for as long as he can. So as long as he can maintain his relative silence and get away with it, if you can call it that, that's a good thing.

He wants to buy himself and needs to as much running room -- diplomatic running room as he can. His foreign policy team is not in place and not assembled yet. So if he has to sneak out and because there's something that's so immense -- of immense importance, he will, he's going to have to do that.

But as much distance as he can keep for now, the better for him politically and diplomatically.

HARRIS: Yes. I think that's smart. Good analysis on that, Frank. Savvy politics to include tax relief proposals in any Obama stimulus package. I guess, more pointedly, do the write-down provisions for businesses sort of neuter Republican criticism and perhaps bring more of them on board to vote for it?

SESNO: I don't think they've neutered the criticisms. Nothing is going to neuter the criticism of 1.2 -- or $1 trillion debt.

HARRIS: Yes. Good one.

SESNO: I mean, that is just -- it is just what it is. Just breathtaking. I did a little quick math, by the way. And if the projections are correct of a $1.2 trillion deficit, that's about 20 times the amount the federal government spends on education. OK?

So that's what we're headed to, a deficit that's something like 20 times what the federal government spends on education. So what Obama is trying to do is to, again, inoculate himself against charges now and down the line, politically -- you know, thinking politically that this is another tax and spend liberal.

So, you know, if you can address the tax cut side, that's not just going to be music to the ears of Republicans who say what we've got to do is put more money in people's pockets, but also conservative Democrats who are worried about the same thing.

HARRIS: Great to see you, Frank. Thanks for your time, as always.

SESNO: Thank you, Tony.

(WEATHER REPORT)

HARRIS: You know, in these tight economic times, companies are coming up with creative ways to get you to part with your money. The question with all of this is, will it work?

(COMMERCIAL BREAK)

TONY HARRIS, CNN ANCHOR: Let's take you to the New York Stock Exchange now for a look at the big board. As you can see, about three hours -- exactly three hours into the trading day, the Dow is down. It's been down all morning. Triple digit territory right at the opening bell. The Dow down 176 points. I don't know what the volume looks like there. So we're under 9,000. And the Nasdaq also down so far 35 points. We will follow the numbers throughout the day right here in the CNN NEWSROOM.

Timid shoppers, aggressive retailers, companies desperate for your money hope new, better than ever gimmicks will convince you to spend. Here we go. Here's CNN's Mary Snow.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT, (voice over): With car sales stalled, Hyundai is trying a first to reel in skiddish consumers worried about losing their jobs.

UNIDENTIFIED MALE, HYUNDAI COMMERCIAL: Buy any new Hyundai and if in the next year you lose your income, we'll let you return it.

SNOW: Bottom line. If you buy one of their cars in the next year and lose your job, you can take it back with conditions, like making at least two payments and there are limits as to how much money they'll give you. Hyundai's turn to an outside finance and insurance company that's run similar programs in Canada.

JEFF BEAVER, WALKAWAY USA, EFG COMPANIES: This is really about peace of mind. It's giving the consumers the confidence to go out and make that purchase.

SNOW: One auto analyst says, in this dismal market, carmakers need to stand out since other incentives, like getting cash back, aren't working.

JESSICA CALDWELL, AUTO ANALYST, EDMUNDS.COM: It's a gimmick to get attention. It's a gimmick to capture those buyers that are kind of on the fence that would like a new car but are just too scared to buy one.

SNOW: The auto industry has been so hard hit, one dealer outside Miami has been offering a buy one truck get one deal since October. But it goes far beyond cars. Giant Food stores is offering free generic prescription antibiotics to customer for the next three months. Wegmans' announced a similar plan. Marketing experts see it as an aggressive push to compete with Wal-Mart as more consumers turn to the discount retailer.

BRITT BEAMER, AMERICA'S RESEARCH GROUP: People like Giant and others are saying, well, how can we stop Wal-Mart? Well, you know, the one category you can go after are prescriptions because that's the one category people buy on a regular basis. They have to. SNOW: One marketing expect we spoke with says expect retailers to keep slashing prices since inventories aren't moving and their big (INAUDIBLE) merchandise to liquidators at 20 cents on the dollar.

Mary Snow, CNN, New York.

(END VIDEOTAPE)

HARRIS: Drama for Obama. The president-elect facing challenges and controversy since arriving in Washington. Senior political correspondent Candy Crowley on the theater that is Washington politics.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN CORRESPONDENT, (voice over): A circus surrounding his old Senate seat, a finger pointing front page story and a bit of a rebuke from his vice president. Just another no drama Obama day. Relatively minor problems he created and major ones that come to him.

There's the Middle East and there's a stimulus plan he needs to sell a Congress that is controlled by Democrats, who will not be controlled by Barack Obama, who says he will not allow members to attach pet projects, known as earmarks, to his still-gauzy proposal. Still, the definition seems squishy.

SEN. BARACK OBAMA, (D) PRESIDENT-ELECT: I describe earmarks as the process by which individual members insert pet projects without review. So what I'm saying is, we're not having earmarks in the recovery package, period.

CROWLEY: Obama made his remarks during a meeting with economic advisers where he also found himself defending a CIA chief he hasn't announced.

OBAMA: I have the utmost respect for Leon Panetta. I think that he is one of the finest public servants that we've had. He brings extraordinary management skills, great political savvy, an impeccable record of integrity.

CROWLEY: Senator Dianne Feinstein, incoming chairman of the select committee on intelligence, thinks someone from the intelligence community should run the CIA, and it didn't help that she found out about Obama's pick in "The New York Times." Bad form. On Capitol Hill for Senate swearing in ceremonies, even Obama's vice president- elect couldn't defend it.

SEN. JOE BIDEN, (D) VICE PRESIDENT-ELECT: I think it's always good to talk to -- to talk to the requisite members of Congress.

REPORTER: Why didn't that happen?

BIDEN: I think it was just a mistake.

CROWLEY: Feinstein says Obama has since apologized profusely. There is also lingering blowback over the withdrawal of Bill Richardson as commerce secretary, a spat over who overlooked the seriousness of a federal probe into a Richardson donor. And there is this three-ring circus around Obama's old Senate seat.

UNIDENTIFIED FEMALE: Sir, what is your expectation?

CROWLEY: Roland Burris showed up Tuesday to sit at Obama's desk and found himself standing in the rain.

ROLAND BURRIS, (D) ILLINOIS SENATE APPOINTEE: I presented my credentials to the secretary of the Senate and advised that my credentials were not in order and I would not be accepted.

CROWLEY: Many Democrats, including Obama, don't think Burris should be seated because he was picked by Illinois Governor Rob Blagojevich, accused of trying to sell the Senate slot. Late in the day, Dianne Feinstein, outgoing chairman of the rules committee, said Burris should be sworn in. No drama Obama is finding he can't always write the play in a city that thrives on political theater.

Candy Crowley, CNN, Washington.

(END VIDEOTAPE)

HARRIS: You know, as we get closer to inaugurating the nation's first black president, high school students around the country are talking about race in America. Have a listen.

(BEGIN VIDEO CLIP)

TAYLOR WALKER, 10TH GRADER: I know that 61 percent of white people voted for Barack Obama and I know that black people have spoken out. And I believe that people have been able to stop the fear and have hope. And I think that that's what Barack Obama has suggested in his campaign. But I also believe that race will continue to be a problem.

BEN POWERS, 11TH GRADER: As you get down into my grandkids and great grandkids and stuff, eventually race is going to become less and less of an issue until it's almost nonexistent.

(END VIDEO CLIP)

HARRIS: You will love this installment in our series, "Class in Session." Tune in for our discussion on race in America this Friday at noon eastern. We also invited a few of the kids to talk live with me about their hopes for the country. You won't want to miss it. Again, that's Friday, noon Eastern.

Hopes for a cease-fire build as the death toll grows in Gaza.

(COMMERCIAL BREAK)

HARRIS: Diplomacy, death, and despair. Day 12 of the Israeli offensive in Gaza. Grief-stricken Palestinians using a lull in fighting today to bury their dead following Israel's attack yesterday on a U.N. school. More on that later. At least 40 civilians seeking shelter were killed, dozens more injured. The U.N. now demanding Israel back up its claims that it was responding from attacks from militants.

Palestinian medical sources report more than 680 people killed in Haza so far, many of them women and children. Another 3,000 wounded. Israel says three civilians and seven soldiers have been killed in the conflict. The Jewish state now says it welcomes a cease-fire plan from France and Egypt, but the proposal must halt Hamas rocket fire and prevent the militants from rearming.

The U.N. insists it is 99.9 percent sure there were no militants firing from a school in Gaza yesterday that was hit by an Israeli military strike. Our Finnoula Sweeney discussed the incident with Israel's foreign military spokesman and the spokesman for the U.N. Relief and Works Agency.

(BEGIN VIDEOTAPE)

FINNOULA SWEENEY, CNN CORRESPONDENT: Now, Israel, Yigal Palmor, is absolutely convinced that there were terrorists inside that school.

YIGAL PALMOR, ISRAELI FOREIGN MIN. SPOKESMAN: We know for a fact that a Hamas squad was firing mortar shelled from the immediate vicinity of the school, from the school grounds. The idea if (ph) we (ph) responded to that fire and the tragic result was what we all know. But the idea if (ph) we responded to mortar fire that was originated from within the immediate vicinity of the school, there have been press reports that quote the neighbors who have been saying that they've witnessed the terrorist fired from within the school.

SWEENEY: Mr. Gunness, people were using this as a shelter. So there is a question clearly of the U.N.'s credibility being brought in here if this is true.

CHRIS GUNNESS, UNRWA SPOKESMAN: Let me say something, which I'm sure will do something to shore up our credibility. We have done an initial investigation from there (ph) and we are 99.9 percent certain that there were no militant, there were no militants' activities in the school or in the school compound. I notice that Yigal says "within the vicinity." And the idea of statement touches (ph) the issue of whether they were in the compound, in the school where they were. UNRWA is responsible for its compounds and its facilities.

SWEENEY: But Yigal Palmor has just said they were inside the school grounds.

GUNNEESS: Can you confirm that?

PALMOR: I said the immediate vicinity. I can't . . .

GUNNEESS: There you go.

PALMOR: Well, the immediate vicinity means right next to the wall. What wall exactly, I'm not in a position to say now. But sticking with their backs to the wall of school can be the school ground or technically outside the fence. But, still, within the immediate vicinity of the school. GUNNEESS: Yigal, I've got to nail you on this. Were they in a UNWRA compound or not? If they were, then you can say to people, well they were there. If they weren't, let's be clear about it, be honest, be open. And, by the way, say it to an impartial inquiry. We have nothing to hide. Bring it on. We want to see the evidence. We want to clear any suspicion that we're doing -- that militants are in our compound.

SWEENEY: Mr. Gunneess, in terms of the evidence, you say you're 99.9 percent sure. So what gives you reason?

GUNNEESS: We had it investigated. One of our best people in Gaza City went up to the area. We talked to community leaders. We talked to the refugees who were there. Thirteen hundred people were told, many by the IDF (ph), to leave their homes. They came to the neutrality of a U.N. compound and then this tragedy happened.

(END VIDEOTAPE)

HARRIS: Part of the issue here, long distance coverage. Israel is keeping the media away from the fighting in Gaza. CNN's Anderson Cooper reports.

(BEGIN VIDEOTAPE)

ANDERSON COOPER, CNN CORRESPONDENT, (voice over): On a hilltop overlooking Gaza, dozens of journalists gather each day training their lenses on a battle they can barely see.

It's a strange sight to see so many reporters and camera people all clustered together on this one, tiny hill watching a battle that's being waged miles away. It's not how most of us would like to cover this story. But the Israeli government won't allow international reporters to go into Gaza. So this is as close as most of us can get.

How frustrating is it trying to cover the story from so far away?

NIC ROBERTSON, SENIOR INTERNATIONAL CORRESPONDENT: It's really frustrating because you don't know what's going on. You can't see there or be there and feel it and you can't see -- we get these pictures from the hospital. But what's happening on the back streets behind the hospital? What's Hamas doing? You know, the sort of questions that we would ask that go beyond the immediacy of the civilian casualties that you want to know about. But the other stuff that really informs you.

COOPER: Even access to Israeli soldiers has been cut off. In 2006, in the fight against Hezbollah, reporters were allowed to broadcast from Israeli artillery positions.

For these soldiers, the real concern . . .

I even embedded with an Israeli army unit on a mission into southern Lebanon. This time around, however, Israel is not permitting any access like that. DANNY SEAMAN, ISRAELI GOVERNMENT PRESS OFFICE: There was too much exposure and it had an effect on our ability to achieve strategic goals. So that's one of the lessons we learned from the war in Lebanon.

COOPER: So you're saying you're preventing reporters from being embedded, from being that close because it's, in part, interfering with military operations?

SEAMAN: Absolutely. Absolutely.

COOPER: Israeli officials are also acutely aware they're fighting not just a military campaign, but a public relations battle. Limiting access is a way to alter how the war is reported.

ROBERTSON: The officials we talk to say it's security and it's for our safety. But it creates an impression that they don't want the suffering that's happening in the Gaza Strip right now to be witnessed by the world. But it is. And right now you could make a real case that the message that's coming out is one that's essentially controlled by people that are perhaps more partizan to the situation inside the Gaza Strip than a lot of international journalists.

COOPER: Inside Gaza, press controlled by Hamas is heavy handed. There are few press freedoms inside Gaza and Hamas controls who reports from there and where they can go.

While pictures of wounded children being brought to hospital are clearly encouraged, we rarely see images of Hamas fighters or their rockets being fired into Israel. In trying to shape public opinion, both sides know the importance of pictures and both sides want to shape the story those pictures reveal.

Anderson Cooper, CNN, along the Israel/Gaza border.

(END VIDEOTAPE)

HARRIS: Anderson reports live from Israel again tonight. Join him and the 360 tem, 10:00 Eastern, only on CNN.

(COMMERCIAL BREAK)

HARRIS: You know, Democratic leaders appear to crack the door open to Roland Burris today. They suggested Burris might be able to claim the Illinois Senate seat provided the Illinois secretary of state signs his certification and the Senate Rules Committee finds everything is in order. Burris is a political veteran with a long resume in Chicago and the state of Illinois. Here's CNN's Susan Roesgen.

(BEGIN VIDEOTAPE)

ROLAND BURRIS, (D) U.S. SENATE APPOINTEE: I am the magic man.

SUSAN ROESGEN, CNN CORRESPONDENT, (voice over): Magic man, maybe, but Roland Burris is seen as both an opportunist and a victim snubbed by the U.S. Senate. Before Mr. Burris went to Washington, Illinois voters knew him as a politician from a different age. He broke the race barrier in the state when he became the comptroller in 1978. Since then, he's been Illinois' attorney general and he's been defeated once in a race for Chicago mayor and three times for governor.

KATHY CHANEY, REPORTER, "CHICAGO DEFENDER": I'm part of the younger generation and I know that there are more younger, you know, candidates that are capable, as well as Burris, to handle the job.

ROESGEN: Kathy Chaney, a reporter for Chicago's oldest black newspaper, also says she might have voted for Burris as a senator, but she doesn't like feeling that he wants to be a senator at any price.

CHANEY: I just think that the timing was wrong. I just don't agree with him, you know, stepping up saying, OK, yes, I'll take it right now.

ROESGEN: "Chicago Tribune" columnist, John Kass, says he's not surprised by the Burris saga and you shouldn't be either.

JOHN KASS, "CHICAGO TRIBUNE": Well, this is Chicago politics, OK? So get used to it because this is how it's going to be.

ROESGEN: Kass sees the Burris appointment as just one more in a long line of crafty moves. It keeps a Democrat in the seat and it lets Governor Rod Blagojevich get some support that might help him stay in office.

KASS: You're going to start seeing Rod Blagojevich, I would assume, within a day or two, leading gospel choirs singing "let my people go."

ROESGEN: That is Chicago politics where anything is possible.

Susan Roesgen, CNN, Chicago.

E(VT)

HARRIS: Gas price on the rise. Yes. For the eighth day in a row, the national average for a gallon of regular unleaded is up again. Hello? Four pennies this time to $1.73. Alaska has the most expensive gas in the nation, $2.53.

Are you tired of your smart phone or laptop battery dying on you after just a few hours of use? Well, tiny fuel cells could be the next big things for mobile device users. Stephanie Elam has our "Energy Fix" from New York.

Stephanie, good to see you.

STEPHANIE ELAM, CNN CORRESPONDENT: Good to see you too, Tony.

Yes, you know, think about it, you know, hand held technology keeps getting more advanced and our gadgets need more power. The thing is, batteries just -- they're not keeping up with us. So fuel cells have long been touted as the eventual solution. They generate energy by using a small amount of liquid fuel. And after years of testing, companies say they've figured out how to make them small and cost effective without overheating.

Now Leland Fusion Systems (ph) plans to introduce a portable butane fuel cell this year with a larger roll out in 2010. As you can see in this picture, it's plugged into an iPhone on this particular device here.

Now the company says the device provides six to 100 hours of power per charge, 20 times more than current batteries. The charger will cost about $150 with refill cartridges around $1 to $3 each.

Then there's another company, MTI Micro Fuel Cells. It plans to introduce a methanol fuel cell by Christmas. It provides 25 hours of cell phone talk time and will also likely cost in the $150 range.

Now not only do fuel cells provide longer lasting power, they're truly, truely portable, Tony. There's no more plugging into the walls to recharge. And you don't have to carry around separate chargers for all of your devices any more either. Fuel cells can be used any time, any place, even on the airplane. Both of these companies say their products are approved for air travel.

Tony.

HARRIS: Yes, we always forgot to take those chargers out of the wall after we charge our devices because they still eat up energy.

ELAM: They do. I know.

HARRIS: Well, here's the -- yes, they do. So here's the thing. The cells, you mentioned, my understanding is, are still just about a year away. Is there anything on the market today?

ELAM: Yes there is, actually. There's something called the 24/7 Power Pack. It's from Medice (ph) Technologies.

HARRIS: Oh, you just happen to have one?

ELAM: I have one here. Look at that. It's laying out right here. Do you love that? It's convenient television. It provides up to 30 hours of cell phone talk time. You can get it on amazon.com for about $40. But as you can see, it's actually bigger than a deck of cards and comes with various adapters for mobile devices. But it can't be refueled. So once it's empty, that's it.

And the way it kind of works, just to give you a quick tutorial. You rip off this green part here, smoosh the two sides together. It's a very technical term, smoosh. And then the fuel mixes itself and then there you go. So that's how it works. Did you like that?

HARRIS: You had fun with that. Yes, you had fun with that, didn't you?

ELAM: Yes. Yes, I did. Of course, you need any more of an energy fix, Tony, if this was just not enough for you today, check out cnnmoney.com.

HARRIS: Never enough.

All right, Stephanie, appreciate it. Good to see you. Thank you.

ELAM: Sure. Good to see you too.

HARRIS: Buy a Texas home, get a brand new Lexus. Red bow included.

(COMMERCIAL BREAK)

HARRIS: Stuck with two mortgages. A Texas homeowner has come up with an unusual idea to sell his home. And some say it's just crazy enough to work. The story from Allison Triarsi. She is with our Houston affiliate KHOU.

(BEGIN VIDEOTAPE)

ALLISON TRIARSI, CNN CORRESPONDENT, (voice over): For sale, for more than six months, priced at almost $1 million. The 5,500 square foot home, like so many across Houston's suburbs, has sat with hardly any notice, despite its Traverting floors and ornate iron balconies.

BARRY REYNOLDS, HOMEOWNER GIVING LEXUS WITH HOUSE: We could have even just choose to stay and have a city home and a country home or we could try to do something different.

TRIARSI: Having already bought a second home, Barry Reynolds decided to try to sell his own house in an unusual way.

REYNOLDS: So we decided to put a Lexus in the driveway.

TRIARSI: A Lexus sits in the driveway.

Brand new, right?

REYNOLDS: Brand new.

TRIARSI: No joke. There is a ribbon on that car because it is a gift to anyone who buys Barry Reynolds' house.

UNIDENTIFIED FEMALE: I think it's awesome. I think it is the sizzle for the stake (ph).

TRIARSI: This realtor heard from North Side Lexus about Reynolds' ploy and she had to see it for herself.

UNIDENTIFIED FEMALE: Told me what Barry was doing with the car. And I was fascinated.

TRIARSI: It's a tactic that grabs attention. And realty experts say it could work because right now people trying to sell their homes, who live in suburbs, are up against two things -- all of the foreclosed homes go in at lower prices, as well as all the new homes that are being sold with a lot of buyer incentives. Of course they're not being sold with a brand new car.

UNIDENTIFIED FEMALE: It's the best sizzle I've seen in a long time. TRIARSI: Since the signs went up, Barry says people stop like this and look. But is this what homeowners have to resort to, to get attention? Experts say no.

UNIDENTIFIED FEMALE: I've already had two new buyers this year, which this is kind of a dull time generally.

TRIARSI: Houston and the National Association of Realtors say homes like this will sell because of lower interest rates under 5 percent. It is why houses won't have to have secret passageways and overlook a lake to sell. Experts predict home sales will rise again in 2009.

In Spring (ph), Allison Triarsi, 11 News.

(END VIDEOTAPE)

HARRIS: It's time for me to run. Getaway time.

KYRA PHILLIPS, CNN ANCHOR: Oh, no, we have to talk about Joe the plumber going to cover the Gaza story.

HARRIS: Is that -- was that the . . .

PHILLIPS: You've got to be kidding me?

HARRIS: What that the e-mail? I saw it. Didn't have an opportunity to open it up.

PHILLIPS: No, it's confirmed, hey, guys, Joe the plumber headed to Gaza to report.

HARRIS: CNN can't get in but he can get in? I don't think so.

PHILLIPS: You know what, I'm just going to become an astronaut. What do you think? What do you want to do?

HARRIS: You know what, I want to see what Joe does. Can I follow Joe to Gaza?

PHILLIPS: You know what, I think he's got his plumber and he's ready to go.

HARRIS: CNN NEWSROOM continues right now. Kyra Phillips. Have fun.

PHILLIPS: Welcome to the club. Barack Obama hobnobs with the only people on earth who know what it's like to be president of the United States.

Beneath the surface, but no longer under the radar. The tunnels of Gaza are many things to many Palestinians. Israelis say they're a war machine.

And a Texas cop shoots an innocent man, right in front of the young victim's