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CNN Live At Daybreak

Morning Conference Call: G8 Summit Set for Later this Week; Indonesia Faces Presidency in Crisis

Aired July 18, 2001 - 08:31   ET

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

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: We are busy planning a big day here at CNN around the world.

On our morning conference call today, we're going to be checking with crews in Italy and Indonesia, first to Rome where the G8 Summit takes place later this week.

CNN State Department producer Elise Labatt is coordinating our coverage and she's going to join us on the phone. Also, CNN's Jakarta bureau chief Maria Ressa is covering a power struggle of the presidency in crisis there, but first we go to Elise.

Elise, what are you looking at today?

ELISE LABATT, PRODUCER, CNN STATE DEPARTMENT: Hi, Carol.

Well, Secretary Powell is here in Rome, of course, for the G8 foreign ministers meeting of industrialized countries. But today he kicked off an intense push by the Bush administration to sell the Russians on missile defense, meeting here in Rome today with Russian foreign minister Igor Ivanov.

We're looking into what is in it for the Russians. Secretary Powell told us yesterday on the plane that the U.S. isn't looking to bribe Moscow into signing off on missile defense. But next week the U.S. Treasury Secretaries and the trade representatives are traveling to Russia and that's going to be followed by a visit by National Security Adviser Condoleezza Rice. This is all to help Russia with its foreign investment and economic opportunities.

So, we're trying to find out exactly what incentives the U.S. is offering Russia, to go along with its plans for missile defense. This is in advance of President Bush's meeting with President Putin later this week at the G8 Summit in Genoa.

LIN: All right, thanks, Elise. And no doubt, you will find out.

Now to Maria Ressa, CNN's Jakarta bureau chief.

Maria, we understand the presidency is in crisis. What's going on there?

MARIA RESSA, CNN JAKARTA BUREAU CHIEF: It's a showdown between President Abdurrahman Wahid and his legislators. Lawmakers here are threatening to impeach him because of incompetence. He says if they don't back down by Friday, he will declare a state of emergency. Now, whether or not he does will depend on Vice President Megawati Sukarnoputri. Her party has the largest number of legislators. So, the next two days, he's going to be checking counter rumors and counter rumors.

If a compromise is reached, it will be only with Megawati's consent. So we're sending a team to follow her around, talk to members of her party. We're also sending another team to parliament where party leaders continue backing negotiations.

What the story really shows are the weaknesses in Indonesia's constitution. In the absence of clear guidelines, in this power struggle, politicians are haggling and bargaining. In the process, they're determining the form the world's third largest democracy will take in the years to come -- Carol.

LIN: Maria, in a situation like this, how much access do you have to key players?

RESSA: Publicly, virtually none, although I did get to speak with President Wahid Thursday last week. He was very determined -- he seems very determined to hold on to power. That was when he first said that he was going to a state of emergency if no compromise is reached by Friday.

However, behind the scenes, speaking to aides, off the record statements, you get a sense of exactly how free flowing the situation is, how it can go one way versus another. Keep in mind also that Indonesia, for more than 32 years under Suharto, had only three political parties. In 1999, that went up to 47 political parties. So, it's a very new process, democracy in this country and we're seeing it play everything out right now.

LIN: All right, which is why we're watching. Thank you very much. Maria Ressa checking in.

CNN has 30 bureaus around the world and we're going to, on a regular basis, check in with them on the morning conference call.

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