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CNN Live Saturday

White House Curious About Iraq-Russia Deal

Aired August 17, 2002 - 17:14   ET

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

FREDRICKA WHITFIELD, CNN ANCHOR: A new economic deal between Russia and Iraq could mean billions for Baghdad. Iraq says the prospective agreement does not violate U.N. sanctions. White House officials are interested in the exact details of deal. So what does this mean for President Bush's call for the ouster of Saddam Hussein? CNN's White House correspondent Suzanne Malveaux joins us from Crawford, Texas with more on that. Hi, Suzanne.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Hi, Fredricka. Iraq's ambassador to Russia tells CNN that Iraq and Russia are planning to sign a five-year economic cooperation package that is worth $40 billion.

It will involve development of projects involving oil, electricity, transportation, and irrigation. But as you know, U.N. resolutions really forbid Iraq from really selling very much oil at all in exchange for food and medicine until they prove that they're no longer seeking weapons of mass destruction, and until that actually happens, until those sanctions are lifted, Russia really has a very limited ability in actually developing these Iraqi oil fields.

Now the White House responds today, they downplayed any type of real concern about this proposal, saying, and I am quoting here, "We're confident that Russia understands its obligations under the United Nations Security Council resolutions and that they will continue to abide by them.

Now the State Department, rather, is asking for more information about this deal from Russia. They say that they will go ahead and comment after they've determined just what this deal actually means. But as you know, Fredericka, it comes at a time when President Bush has really been pushing for not only domestic but international support to oust Saddam Hussein and to isolate Iraq.

(BEGIN VIDEO CLIP)

JOSEPH CIRINCIONE, CARNEGIE ENDOWMENT: It shows that there are grave doubts and big obstactles out there in the rest of the world to any U.S. plans to invade Iraq.

The president keeps raising the flag of war, but very few countries are saluting it.

(END VIDEO CLIP)

MALVEAUX: Now the president really has also faced some opposition from top Republicans as well as former military commanders over the last week or so, that debate being played out in the front pages of the newspapers. This coming week, National Security Adviser Condoleezza Rice as well as Secretary of Defense Donald Rumsfeld will be out here in Crawford to discuss, among other things, options towards Iraq -- Fredricka.

WHITFIELD: All right, Suzanne. President Bush getting a lot of attention about his position on Iraq, and now a lot of attention, too, on some of his invited guests at the White House, even after last year saying he wouldn't do what his predecessor had done.

MALVEAUX: Well, that news came out early this morning. The White House released a list of about 160 overnight guests at the Bush White House, including some six top Republican fundraisers. As you mentioned before, it received a lot of criticism from the Clinton Administration, allegations that the Democrats actually were using the Lincoln Bedroom as a reward for some donations that were contributed.

I spoke with White House Spokesperson Claire Buchan, who says this is nothing of the sort, that if you look at the list, you'll see a lot of these people are old-time family friends and supporters. She says if they were raising money for President Bush, that it made sense, because they actually support him. But that criticism coming from some Democrats today. I have to tell you, the Bush Administration is quite the fund-raising machine. It was just -- the last couple days that he threw a big party for his top fund-raisers, called the Pioneers. There are more than 200 who raised collectively $100 million for the Bush 2000 campaign, and President Bush has the distinction of earning the most money for his party out of any of his predecessors, including President Clinton -- Fredericka.

WHITFIELD: All right. Thanks very much, Suzanne Malveaux from Crawford, Texas.

Well, for more on the volatile issues surrounding Iraq, more specifically, and the latest on the White House reaction to the Russian dealings with Saddam Hussein, click on our Web site site. Address is cnn.com, aol keyword CNN.

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