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Hostage Slaughterhouses Found in Falluja; Plans For Arafat's Funeral and Burial; Direction For Democratic Leadership; Entertainment News

Aired November 10, 2004 - 14:30   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.


BETTY NGUYEN, CNN ANCHOR: Now in the news -- interest rates are on the rise once again. Just minutes ago, the Fed raised the federal funds rate by a quarter of a percentage point to two percent. Now, many banks are expected to follow suit, meaning it could cost more to borrow money. This is the fourth rate hike this year alone.
The Scott Peterson jury is deliberating again after more upheaval today. The judge dismissed another juror, the second in two days, and replaced him with an alternate. Juror number five was the jury foreman. We don't know why he was kicked off.

And Yasser Arafat said to be at a very critical stage. The Palestinian foreign minister says Arafat's kidneys and liver have shut down, although his heart and lungs are still functioning. Funeral plans are being ironed out for whenever the end comes. We'll look at those details just ahead.

TONY HARRIS, CNN ANCHOR: And now to Falluja, where New Dawn has brought to light grim new discoveries. On day three of a joint operation aimed at breaking an insurgent stranglehold, Iraqi troops are said to have come upon slaughterhouses, sites where hostages were held, carefully documented, and killed. U.S. and Iraqi forces now control most of Falluja -- 70 percent by one estimate -- with roadside bombs and booby-traps representing most of the remaining threat.

CNN's Jane Arraf and Karl Penhaul are both in the thick of the action. Here's the latest from Jane.

(BEGIN VIDEOTAPE)

JANE ARRAF, CNN CORRESPONDENT: It appears that one of the industries in Falluja's industrial park was bomb making. Soldiers going through here from the Brigade Reconnaissance Troop have been finding -- as well as insurgents firing at them, like now, and soldiers firing back -- a variety of explosives at almost every turn. Explosives -- experts here have assembled them in this pit to blow them up.

Along with anti-tank mines, mortars, rocket-propelled grenades, and detonating cord, they also have broadcasting equipment, apparently to broadcast messages throughout the sector. There have been very few civilians here. In fact, almost none. Soldiers say that insurgents essentially cleared the area to be able to rig it with explosives.

One of the mysteries is, though, why there is fewer insurgents than military believed they would encounter? They say they may have fled, some may be cornered in another part of the city, and some may be waiting to come out and fight again.

Jane Arraf, CNN, reporting from Falluja.

(END VIDEOTAPE)

HARRIS: Again, today, it appears insurgents are taking pains to flex their muscles. Far from Falluja, in Baghdad, a car bomb is blamed for killing seven people, maybe as many as 10, near a gathering of police cars. Several other people are hurt.

Iraq's prime minister, meanwhile, is dealing with his own personal hostage crisis. A 75-year-old cousin of Ayad Allawi was kidnapped last night at gunpoint, along with the man's wife and the couple's daughter-in-law. An Islamist group is threatening to behead all three unless Allawi frees Iraqi detainees and stands down in Falluja.

And Mosul joins Baghdad as a city under curfew tonight after a deadly attack there today on a police convoy. Two officers and a civilian were killed, five other officers wounded.

NGUYEN: Well, overseas now where Palestinian officials say it could be a matter of days or even hours until Yasser Arafat dies. Already plans are finalized for the funeral and burial, which would be politically and acceptable to Palestinians and Israelis.

Joining me to talk about this now is Octavia Nasr, our senior editor of Arab affairs. Hi there, Octavia.

OCTAVIA NASR, SR. EDITOR, ARAB AFFAIRS: Hi there.

NGUYEN: Let's talk about the cleric, which has arrived at Arafat's bedside. There is both a religious and political significance to this, correct?

NASR: Right. He's the chief judge in the Palestinian territories, a very dear friend of Yasser Arafat. So, he's there as a friend, but he's also there as a political and religious figure.

The first thing out of his mouth when he got to Paris is to say that we will not pull any plugs off, and the president is alive and well. He says that he's in a very critical situation, but he's alive nonetheless, and that he will stay on life support until one of his organs -- brain, lungs, or heart -- will stop functioning. Very clear message.

NGUYEN: And it's very clear that they're not going to clear -- pull the plug from this cleric, according to what he said today. But the question is if they're not going to take Arafat off of life support, why are there plans being made for the end of this week for a funeral and burial?

NASR: I don't think there are a question about the situation of Yasser Arafat. Everybody is in agreement that he is heading towards that, that he is going to die, but when is the question. You have to remember that the Palestinians do not have an infrastructure. They're not ready for something of this magnitude, the death of the only leader they've known. So, they have to prepare.

And they came up with this -- they decided to bury him at his headquarters in Ramallah, which is an official building. It's not a burial place. So, they have to prepare it, and that's what we see. We see a lot of action -- right there you see it -- a lot of action cleaning up the headquarters. Also, they expect lots of crowds to show up for the burial ceremony. They expect a lot of Palestinians to pour in and perhaps spend days and nights there in shifts, just to be there.

So, they have a lot of cleaning up to do, and a lot of preparation. You know, to bury him, they have specific guidelines that they need to follow -- which way the burial place is going to be facing, and which way he's going to be buried. You know, is he going to have a traditional burial, or is he going to be lying in state there for people to see him? Lots of questions.

So, lots of preparation, because when the news does come in that he's dead, these people want to be ready.

NGUYEN: ... 24 hours. Yeah, they have to move very quickly.

Let me ask you, though, before we get to the burial, we have to get to the funeral. And that's going to happen in Cairo?

NASR: Right. This is what they're calling the official funeral. And you have remember, again, Yasser Arafat is an Arab leader. He's a member of the Arab League. So, they want to be able to pay their respects to him, and they're not going to be able to do that in Ramallah, which is under Israeli siege right now.

And a lot of Arab countries do not have any peace agreements with Israel. Some of them have -- like Egypt and Jordan, they have signed peace agreements with Israel. Some other countries like Tunisia and Morocco, they have an understanding between the countries. But certainly not a situation that will allow these leaders to travel to Ramallah for the funeral.

So, they figured out that Cairo is the headquarters of the Arab League. All the Arab leaders can attend. It will be the official -- what they're calling the official funeral, and then the body will be taken to Ramallah for final burial.

NGUYEN: And there it will be in a monument that's a movable monument, in the case that possibly he can be moved to Jerusalem at some point in time?

NASR: Right. Some people are speaking about a mausoleum perhaps, that it will be a shrine-like burial. But definitely, the Palestinians are talking about a removable grave that later on they hope they can move it to Jerusalem where Arafat wanted initially to be buried.

NGUYEN: All right. CNN's Octavia Nasr, thank you so much for that.

NASR: You bet.

NGUYEN: Tony?

HARRIS: Back here in the U.S., who will be the one to lead the Democrats into the future? How about Howard Dean or Hillary Clinton? The party buzz coming up.

Plus, kicked off a flight not too long ago, now he's mixing with Nobel Peace laureates and even picking up a special award.

ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

HARRIS: Democrats insist the party is not over, but it is going through something of an identity crisis after losing the White House and seats in Congress last week.

Our Judy Woodruff looks at the party's attempts to get back on track.

(BEGIN VIDEOTAPE)

JUDY WOODRUFF, HOST, "INSIDE POLITICS" (voice-over): If you had any doubts that John Kerry wants to remain a top player in his dispirited party, check out this picture. Kerry, back on Capitol Hill Tuesday, powwowing with the current Democratic leader in the House and her incoming counterpart in the Senate.

Their goal?

REP. NANCY PELOSI (D-CA), MINORITY LEADER: Saving civilization as we know it today.

WOODRUFF: Nancy Pelosi was joking, but to Democrats, the state of the party is no laughing matter after losing the White House and seats in the Senate and House.

So, the "where did we go wrong, what do we do now" conversations have begun in earnest. Among the big questions: How will Kerry fit in? As statesman? As thorn in President Bush's side? Or once again as presidential candidate?

SEN. JOHN KERRY (D-MA), FMR. PRESIDENTIAL CANDIDATE: It's not inconceivable to me that everybody's even talking about that stuff right now.

WOODRUFF: But the senator's brother told "The Boston Globe" another Kerry race for the White House is conceivable. For now, he says Kerry will continue to fight for the values and issues he campaigned on.

Another question: Who will take the helm of the Democratic National Committee once, as expected, Terry McAuliffe steps down. Howard Dean says he's looking at the job.

HOWARD DEAN (D), FMR. PRESIDENTIAL CANDIDATE: We're not retreating, and we're not giving up, and we're not going to stop fighting.

WOODRUFF: Some Democrats think Dean would bring energy to the party, not to mention his Internet-based network of Dean-iacs. But Dean carries his own baggage, and it's not clear if he wants another shot at the White House in 2008.

One top candidate for the DNC post is a strong voice in the growing chorus of Democrats who say the party needs a clearer message that sells in the heartland.

DONNA BRAZILE, FMR. GORE CAMPAIGN MANAGER: We must have enough faith and confidence in what we stand for to clearly advocate for what we believe and not get caught up in polls and focus groups that can switch overnight.

WOODRUFF: Top Kerry campaign advisors acknowledge the senator's message problems, but argue that Iraq and social issues wound up driving the race. One week later, the denial phase of their mourning process appears to have passed and reality has hit.

Judy Woodruff, CNN, Washington.

(END VIDEOTAPE)

HARRIS: So, how do the Democrats get back on message, and what is that message exactly? Joining me now to talk about that, CNN contributor and former Republican Congressman Bob Barr. Bob, good to see you.

BOB BARR, CNN CONTRIBUTOR: Thank you. Always a pleasure.

HARRIS: And Democratic strategist Morris Reid. Morris, good to see you.

MORRIS REID, DEMOCRATIC STRATEGIST: Tony, how are you?

HARRIS: Well, good, sir. Let me start with you. Has that conversation where we go from here, has it started in earnest, and what are you hearing?

REID: Well, it started the night that we lost. And I think it's certainly in earnest, and there's enough blame to go around to everyone. We all didn't do enough to get John Kerry over the hump.

But frankly, where we go from here is to really go back to the core, to the roots of where this party has traditionally been -- fighting for the little guy. When you look at election results and you look at who voted for who, people look like they voted not in their own self-interest.

So, what we have to do as a party is we have to become relevant to those folks -- those little guys, if you will -- we need to get back to the basics and become relevant to them. We have to speak with a clear voice and clear conviction, and we can't be afraid to talk about those things that those people want to hear.

HARRIS: Starting with the DNC, Morris, who articulates that position, and what is -- what is that message?

REID: Well, from my standpoint, I like to look outside of Washington, D.C. I think that we have a strong crop of governors. If you look at the governor of Iowa, the governor in New Mexico, the governor in Virginia, I think that we have an ample -- we have a wide bench, I think. So, we can look outside of D.C. to find a strong leader, and I think that's important to get those other voices represented.

And the clear message is really to talk about those things that resonates with people's lives. It's about economic things. It's about how their children are growing up. It's those basic principles. A lot of times with Democrats, we get too complicated in our messaging. So, we really need to get back to basics, and I think we need to look beyond the current crop of people in D.C.

HARRIS: Bob Barr, give the Democrats some help. Give them some focus here. What did they miss out on? Are they getting the message of this election?

BARR: Well, we just heard a very lucid and, I think, very relevant discussion of what they need to do. And they need to do exactly what the Republican party has done very successfully over the last decade or so, and that is to make your message relevant to get out in the communities at the grassroots level, and not worry so much about Washington.

When either party -- the Republican or the Democrat party -- has not done that, they lose elections. So, what is being talked about here is very relevant. And I hope that they do it, because I'm a firm believer in as much solid competition in politics as possible.

REID: Hey, I think also it's important for the Democrats to go for the long shot. If you remember back, the guy who got them to the promised land was Ron Brown. No one really thought that Ron Brown could run the party.

I think they need to take a chance again. We have to be aspiration. We need to look to someone that's not on the -- you know, that's on the front burner. Ron Brown wasn't on the front burner...

HARRIS: Is that Howard Dean?

REID: ... do it.

I don't know if it's Hoard Dean. I really like Tom Vilsack, personally. I like Mark Warner. He's a guy who has a lot of success. You know, look at his story. He's a businessman. he comes from a southern state. He can talk the talk and walk the walk.

So, I really believe that we've got to look for not the easy choice. We really need to look beyond the Beltway.

HARRIS: Donna Brazile?

REID: I love Donna Brazile. I haven't gotten a call that she's a candidate, but I love her, I think she has a role to play. But perhaps we even need to look beyond Donna. But that's a great start -- and unusual, quite frankly. It's great to have a person like Donna on the short list if, in fact, she wants the job.

HARRIS: And Bob, what would Republicans' reaction be to Howard Dean running the DNC?

BARR: Yee-haw!

HARRIS: Yeah, see -- I couldn't have queued it up any better for you, could I?

BARR: I think it would be a mistake for the Democrat party. And I like Howard Dean here. He was a very eloquent spokesman for the party during the early primaries certainly. But to go with somebody who failed miserably as a candidate, to look to them for the future of the party, I think would be a real bad miscalculation for the Democrats.

HARRIS: OK...

REID: I think also Bob -- Bob hits on a really good point. We don't need to go -- as Democrats, we don't need to go for the trendy thing. We really need to get -- I keep saying back to basics. That's really where we need to go.

I've been reading all these crazy stories -- you know, the sky is going to fall down, and Democrats are like, "Where do we go from here?" Look, let's stick to what we know. We know that if we connect with people across the kitchen table and in their life and become relevant, we're going to win. That's what Ron Brown showed us...

HARRIS: Let's leave it there. Morris Reid and Bob Barr, we appreciate your time. Thank you.

BARR: Sure.

REID: Thank you.

HARRIS: Betty?

NGUYEN: Sounds like Bob has been practicing that Dean impersonation.

Well, it is almost time for the big holiday movies. Who's getting all the buzz? Sibila knows.

SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT: That's right, Betty.

Academy Award winner Tom Hanks takes us on a journey to a magical place in the new holiday film, "The Polar Express." I'll have the whole story when CNN's LIVE FROM continues.

(COMMERCIAL BREAK)

NGUYEN: Two months after being turned away on a flight to the U.S., the singer formerly known as Cat Stevens is being honored for humanitarian work. Yusuf Islam was presented with the Man for Peace Award in Rome today by former Soviet leader Mikhail Gorbachev. Islam was singled out for his charitable work involving children in the Balkans and Mid East. Now, in September, as you recall, he was denied entry in the U.S. and his plane diverted when his name turned up on a watch list.

We're going to shift gears now. Nashville was the place for stargazing last night with the annual Country Music Awards. But the big winner had barely fired up his acceptance speech before getting a wrap cue. Hate when that happens!

Sibila Vargas fires up her high-powered Tinseltown telescope for all the dish on the CMAs. hi there, Sibila.

VARGAS: Hey, Betty.

It was a huge night in Nashville as some of music's brightest stars were recognized at 38th Annual Country Music Awards. Gretchen Wilson, Keith Urban, Martina McBride, and Kenny Chesney were some of the evening's big winners.

Chesney garnered three awards, including the coveted Entertainer of the Year prize.

(BEGIN VIDEO CLIP)

KENNY CHESNEY, ENTERTAINER OF THE YEAR: You can turn that off, I'm going to stay up here. I waited 12 years. You ain't going to get me off in two minutes. You can turn it off the TV, we're going to be here a while.

(END VIDEO CLIP)

VARGAS: Well, unfortunately, Chesney never did a chance to finish the speech during the telecast, but the country crooner did say his piece backstage, where he thanked his family, his friends, and all of his fans -- Tony?

NGUYEN: Well -- Sibila, it's Betty. At least he got to say at the end, which is a good thing.

Hey, I want to ask you about "The Incredibles," because they are facing some stiff competition.

HARRIS: That's right.

VARGAS: Oh, yeah. Well, you know, "The Polar Express" is coming out. And if you thought "The Incredibles" were incredible, Tom Hanks is hoping you take his amazing ride on "The Polar Express." The animated feature chugs its way into theaters today. And we talked to Hanks and the people responsible for bringing this popular children's book to life.

(BEGIN VIDEOTAPE)

TOM HANKS, ACTOR: All aboard!

VARGAS (voice-over): "The Polar Express" tells the tale of how a young boy's magical journey to the North Pole helps him believe in the spirit of Christmas.

HANKS: Sometimes the most real things in the world are the things we can't see.

The Chris Van Allsburg story is so elegant and simple. The danger is screwing it up. The danger is like tacking on so much stuff that that's not recognizable anymore.

VARGAS: To accomplish this, filmmakers adopted a strategy for telling the story.

HANKS: They came to this idea that we'll start with the first line of the book and we'll end with the last line of the book. And everything that goes on in between, well, that's up for grabs.

VARGAS: Hanks voices many characters in the film.

HANKS: The emotional backbone of the movie really is Chris Van Allsburg's paintings. These are haunting, almost surrealistic, impressionistic versions of what Christmas Eve can be.

VARGAS: The responsibility of breathing life into those pages landed on the shoulders of special effects supervisors Jerome Chen and Ken Ralston.

JEROME CHEN, SPECIAL EFFECTS SUPERVISOR: It was constantly just looking at the imagery that was being created and making sure that our lighting and the feeling of whatever we were looking at was in the spirit of the book.

KEN RALSTON, SPECIAL EFFECTS SUPERVISOR: I always wanted to have a sense that even though you don't go to some of these places in the movie, like that alleyway in the distance or in through that tunnel, the audience and the children who are watching it would be able to just feel there was something out there.

HANKS: Brace yourself!

VARGAS: This holiday season, whether it's Van Allsburg's timeless story, a multi-million dollar special effects budget, or the unsinkable pairing of Hanks and Zemeckis, audiences will have their chance to believe in "The Polar Express."

HANKS: I want to believe but...

Believe.

(END VIDEOTAPE)

VARGAS (on camera): And we caught up with Hanks at the movie's L.A. premiere, and he told us that he hopes the movie ranks with the rest of the big screen classics like "A Christmas Carol" and "It's a Wonderful Life" -- Betty?

NGUYEN: And the animation in that movie is just incredible. All right, Sibila Vargas...

VARGAS: I know -- I believe, I believe.

NGUYEN: Exactly, we're believers! Thank you, Sibila.

VARGAS: Thanks, Betty.

HARRIS: Now, earlier this hour, the Fed announced its decision on interest rates, and for Wall Street's reaction, Rhonda Schaffler joins us from the New York Stock Exchange. Hi, Rhonda.

RHONDA SCHAFFLER, CNN SR. BUSINESS CORRESPONDENT: Hello, Tony and Betty.

Wall Street believes, actually, after looking at this Fed decision. No curve balls or surprises from the Fed, boosting rates for the fourth time this year. This was widely expected. And because of that, we're really seeing the market do pretty much what it did before. The Dow moving higher, gaining a bit more momentum, though, right now. The Dow Jones Industrial Average above 10,400. Nasdaq is slightly higher.

Analysts, of course, were also checking out what the Fed said, along with this interest rate move. The Fed did say that the labor market is improving and that inflation not a problem -- Betty, Tony?

NGUYEN: Rhonda, car buyers, they may be a little nervous about locking in these interest rates now that they're rising. But there is something new that GM is offering. What's that?

SCHAFFLER: Yes, give these carmakers an A-plus for effort as far as throwing new incentives out there for consumers. This is a new and different car incentive plan now. It's hoped for GM this will boost some sales.

Under the program, GM will give car buyers who purchase a new GM vehicle this month the same rate when they buy a second GM vehicle. Here's how it works. If you buy a car now and take a 36-month financing plan, you would get the same low interest rate on any GM car you buy over the next three years.

Now, of course, this might bring in some shoppers. GM sales have been very volatile this year, depending on whatever incentives it's throwing out there. Last month, GM, in fact, posted a five percent drop in year-over-year sales.

That is all the latest news from Wall Street. Tony, Betty, have a great day.

NGUYEN: He is. You have to buy two cars -- not just one, but two to get that. That's a big deal.

HARRIS: It is. Wow. Thank you.

NGUYEN: Thanks, Rhonda.

And that wraps up LIVE FROM.

HARRIS: "INSIDE POLITICS" is up next. Here's Judy with a preview. Hello, Judy.

WOODRUFF: Hi, Tony. Thanks to you and to Betty. It is the end of an era in the Bush administration. Today on "INSIDE POLITICS," we'll take a look at the controversial current attorney general and the man who may replace him.

Plus, conspiracy theories are making their rounds online. We'll hear from some experts who monitor the election results when INSIDE POLITICS begins in just a moment.

(COMMERCIAL BREAK)

NGUYEN: I'm Betty Nguyen at the CNN Center. "INSIDE POLITICS" is next after a look of stories now in the news.

Another juror has been booted from the Scott Peterson murder trial. That is two jurors out in two days. The juror, number five, was a doctor and lawyer and foreman of the jury. More details on "WOLF BLITZER REPORTS" at 5:00 Eastern.

Days or even hours, that's how long Palestinian officials believe Yasser Arafat has to live. The ailing Palestinian leader is said to be in a very critical stage of his illness. Officials are making plans for a funeral and burial possibly at the end of the week.

Now it's on to "JUDY WOODRUFF'S INSIDE POLITICS."

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Aired November 10, 2004 - 14:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: Now in the news -- interest rates are on the rise once again. Just minutes ago, the Fed raised the federal funds rate by a quarter of a percentage point to two percent. Now, many banks are expected to follow suit, meaning it could cost more to borrow money. This is the fourth rate hike this year alone.
The Scott Peterson jury is deliberating again after more upheaval today. The judge dismissed another juror, the second in two days, and replaced him with an alternate. Juror number five was the jury foreman. We don't know why he was kicked off.

And Yasser Arafat said to be at a very critical stage. The Palestinian foreign minister says Arafat's kidneys and liver have shut down, although his heart and lungs are still functioning. Funeral plans are being ironed out for whenever the end comes. We'll look at those details just ahead.

TONY HARRIS, CNN ANCHOR: And now to Falluja, where New Dawn has brought to light grim new discoveries. On day three of a joint operation aimed at breaking an insurgent stranglehold, Iraqi troops are said to have come upon slaughterhouses, sites where hostages were held, carefully documented, and killed. U.S. and Iraqi forces now control most of Falluja -- 70 percent by one estimate -- with roadside bombs and booby-traps representing most of the remaining threat.

CNN's Jane Arraf and Karl Penhaul are both in the thick of the action. Here's the latest from Jane.

(BEGIN VIDEOTAPE)

JANE ARRAF, CNN CORRESPONDENT: It appears that one of the industries in Falluja's industrial park was bomb making. Soldiers going through here from the Brigade Reconnaissance Troop have been finding -- as well as insurgents firing at them, like now, and soldiers firing back -- a variety of explosives at almost every turn. Explosives -- experts here have assembled them in this pit to blow them up.

Along with anti-tank mines, mortars, rocket-propelled grenades, and detonating cord, they also have broadcasting equipment, apparently to broadcast messages throughout the sector. There have been very few civilians here. In fact, almost none. Soldiers say that insurgents essentially cleared the area to be able to rig it with explosives.

One of the mysteries is, though, why there is fewer insurgents than military believed they would encounter? They say they may have fled, some may be cornered in another part of the city, and some may be waiting to come out and fight again.

Jane Arraf, CNN, reporting from Falluja.

(END VIDEOTAPE)

HARRIS: Again, today, it appears insurgents are taking pains to flex their muscles. Far from Falluja, in Baghdad, a car bomb is blamed for killing seven people, maybe as many as 10, near a gathering of police cars. Several other people are hurt.

Iraq's prime minister, meanwhile, is dealing with his own personal hostage crisis. A 75-year-old cousin of Ayad Allawi was kidnapped last night at gunpoint, along with the man's wife and the couple's daughter-in-law. An Islamist group is threatening to behead all three unless Allawi frees Iraqi detainees and stands down in Falluja.

And Mosul joins Baghdad as a city under curfew tonight after a deadly attack there today on a police convoy. Two officers and a civilian were killed, five other officers wounded.

NGUYEN: Well, overseas now where Palestinian officials say it could be a matter of days or even hours until Yasser Arafat dies. Already plans are finalized for the funeral and burial, which would be politically and acceptable to Palestinians and Israelis.

Joining me to talk about this now is Octavia Nasr, our senior editor of Arab affairs. Hi there, Octavia.

OCTAVIA NASR, SR. EDITOR, ARAB AFFAIRS: Hi there.

NGUYEN: Let's talk about the cleric, which has arrived at Arafat's bedside. There is both a religious and political significance to this, correct?

NASR: Right. He's the chief judge in the Palestinian territories, a very dear friend of Yasser Arafat. So, he's there as a friend, but he's also there as a political and religious figure.

The first thing out of his mouth when he got to Paris is to say that we will not pull any plugs off, and the president is alive and well. He says that he's in a very critical situation, but he's alive nonetheless, and that he will stay on life support until one of his organs -- brain, lungs, or heart -- will stop functioning. Very clear message.

NGUYEN: And it's very clear that they're not going to clear -- pull the plug from this cleric, according to what he said today. But the question is if they're not going to take Arafat off of life support, why are there plans being made for the end of this week for a funeral and burial?

NASR: I don't think there are a question about the situation of Yasser Arafat. Everybody is in agreement that he is heading towards that, that he is going to die, but when is the question. You have to remember that the Palestinians do not have an infrastructure. They're not ready for something of this magnitude, the death of the only leader they've known. So, they have to prepare.

And they came up with this -- they decided to bury him at his headquarters in Ramallah, which is an official building. It's not a burial place. So, they have to prepare it, and that's what we see. We see a lot of action -- right there you see it -- a lot of action cleaning up the headquarters. Also, they expect lots of crowds to show up for the burial ceremony. They expect a lot of Palestinians to pour in and perhaps spend days and nights there in shifts, just to be there.

So, they have a lot of cleaning up to do, and a lot of preparation. You know, to bury him, they have specific guidelines that they need to follow -- which way the burial place is going to be facing, and which way he's going to be buried. You know, is he going to have a traditional burial, or is he going to be lying in state there for people to see him? Lots of questions.

So, lots of preparation, because when the news does come in that he's dead, these people want to be ready.

NGUYEN: ... 24 hours. Yeah, they have to move very quickly.

Let me ask you, though, before we get to the burial, we have to get to the funeral. And that's going to happen in Cairo?

NASR: Right. This is what they're calling the official funeral. And you have remember, again, Yasser Arafat is an Arab leader. He's a member of the Arab League. So, they want to be able to pay their respects to him, and they're not going to be able to do that in Ramallah, which is under Israeli siege right now.

And a lot of Arab countries do not have any peace agreements with Israel. Some of them have -- like Egypt and Jordan, they have signed peace agreements with Israel. Some other countries like Tunisia and Morocco, they have an understanding between the countries. But certainly not a situation that will allow these leaders to travel to Ramallah for the funeral.

So, they figured out that Cairo is the headquarters of the Arab League. All the Arab leaders can attend. It will be the official -- what they're calling the official funeral, and then the body will be taken to Ramallah for final burial.

NGUYEN: And there it will be in a monument that's a movable monument, in the case that possibly he can be moved to Jerusalem at some point in time?

NASR: Right. Some people are speaking about a mausoleum perhaps, that it will be a shrine-like burial. But definitely, the Palestinians are talking about a removable grave that later on they hope they can move it to Jerusalem where Arafat wanted initially to be buried.

NGUYEN: All right. CNN's Octavia Nasr, thank you so much for that.

NASR: You bet.

NGUYEN: Tony?

HARRIS: Back here in the U.S., who will be the one to lead the Democrats into the future? How about Howard Dean or Hillary Clinton? The party buzz coming up.

Plus, kicked off a flight not too long ago, now he's mixing with Nobel Peace laureates and even picking up a special award.

ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

HARRIS: Democrats insist the party is not over, but it is going through something of an identity crisis after losing the White House and seats in Congress last week.

Our Judy Woodruff looks at the party's attempts to get back on track.

(BEGIN VIDEOTAPE)

JUDY WOODRUFF, HOST, "INSIDE POLITICS" (voice-over): If you had any doubts that John Kerry wants to remain a top player in his dispirited party, check out this picture. Kerry, back on Capitol Hill Tuesday, powwowing with the current Democratic leader in the House and her incoming counterpart in the Senate.

Their goal?

REP. NANCY PELOSI (D-CA), MINORITY LEADER: Saving civilization as we know it today.

WOODRUFF: Nancy Pelosi was joking, but to Democrats, the state of the party is no laughing matter after losing the White House and seats in the Senate and House.

So, the "where did we go wrong, what do we do now" conversations have begun in earnest. Among the big questions: How will Kerry fit in? As statesman? As thorn in President Bush's side? Or once again as presidential candidate?

SEN. JOHN KERRY (D-MA), FMR. PRESIDENTIAL CANDIDATE: It's not inconceivable to me that everybody's even talking about that stuff right now.

WOODRUFF: But the senator's brother told "The Boston Globe" another Kerry race for the White House is conceivable. For now, he says Kerry will continue to fight for the values and issues he campaigned on.

Another question: Who will take the helm of the Democratic National Committee once, as expected, Terry McAuliffe steps down. Howard Dean says he's looking at the job.

HOWARD DEAN (D), FMR. PRESIDENTIAL CANDIDATE: We're not retreating, and we're not giving up, and we're not going to stop fighting.

WOODRUFF: Some Democrats think Dean would bring energy to the party, not to mention his Internet-based network of Dean-iacs. But Dean carries his own baggage, and it's not clear if he wants another shot at the White House in 2008.

One top candidate for the DNC post is a strong voice in the growing chorus of Democrats who say the party needs a clearer message that sells in the heartland.

DONNA BRAZILE, FMR. GORE CAMPAIGN MANAGER: We must have enough faith and confidence in what we stand for to clearly advocate for what we believe and not get caught up in polls and focus groups that can switch overnight.

WOODRUFF: Top Kerry campaign advisors acknowledge the senator's message problems, but argue that Iraq and social issues wound up driving the race. One week later, the denial phase of their mourning process appears to have passed and reality has hit.

Judy Woodruff, CNN, Washington.

(END VIDEOTAPE)

HARRIS: So, how do the Democrats get back on message, and what is that message exactly? Joining me now to talk about that, CNN contributor and former Republican Congressman Bob Barr. Bob, good to see you.

BOB BARR, CNN CONTRIBUTOR: Thank you. Always a pleasure.

HARRIS: And Democratic strategist Morris Reid. Morris, good to see you.

MORRIS REID, DEMOCRATIC STRATEGIST: Tony, how are you?

HARRIS: Well, good, sir. Let me start with you. Has that conversation where we go from here, has it started in earnest, and what are you hearing?

REID: Well, it started the night that we lost. And I think it's certainly in earnest, and there's enough blame to go around to everyone. We all didn't do enough to get John Kerry over the hump.

But frankly, where we go from here is to really go back to the core, to the roots of where this party has traditionally been -- fighting for the little guy. When you look at election results and you look at who voted for who, people look like they voted not in their own self-interest.

So, what we have to do as a party is we have to become relevant to those folks -- those little guys, if you will -- we need to get back to the basics and become relevant to them. We have to speak with a clear voice and clear conviction, and we can't be afraid to talk about those things that those people want to hear.

HARRIS: Starting with the DNC, Morris, who articulates that position, and what is -- what is that message?

REID: Well, from my standpoint, I like to look outside of Washington, D.C. I think that we have a strong crop of governors. If you look at the governor of Iowa, the governor in New Mexico, the governor in Virginia, I think that we have an ample -- we have a wide bench, I think. So, we can look outside of D.C. to find a strong leader, and I think that's important to get those other voices represented.

And the clear message is really to talk about those things that resonates with people's lives. It's about economic things. It's about how their children are growing up. It's those basic principles. A lot of times with Democrats, we get too complicated in our messaging. So, we really need to get back to basics, and I think we need to look beyond the current crop of people in D.C.

HARRIS: Bob Barr, give the Democrats some help. Give them some focus here. What did they miss out on? Are they getting the message of this election?

BARR: Well, we just heard a very lucid and, I think, very relevant discussion of what they need to do. And they need to do exactly what the Republican party has done very successfully over the last decade or so, and that is to make your message relevant to get out in the communities at the grassroots level, and not worry so much about Washington.

When either party -- the Republican or the Democrat party -- has not done that, they lose elections. So, what is being talked about here is very relevant. And I hope that they do it, because I'm a firm believer in as much solid competition in politics as possible.

REID: Hey, I think also it's important for the Democrats to go for the long shot. If you remember back, the guy who got them to the promised land was Ron Brown. No one really thought that Ron Brown could run the party.

I think they need to take a chance again. We have to be aspiration. We need to look to someone that's not on the -- you know, that's on the front burner. Ron Brown wasn't on the front burner...

HARRIS: Is that Howard Dean?

REID: ... do it.

I don't know if it's Hoard Dean. I really like Tom Vilsack, personally. I like Mark Warner. He's a guy who has a lot of success. You know, look at his story. He's a businessman. he comes from a southern state. He can talk the talk and walk the walk.

So, I really believe that we've got to look for not the easy choice. We really need to look beyond the Beltway.

HARRIS: Donna Brazile?

REID: I love Donna Brazile. I haven't gotten a call that she's a candidate, but I love her, I think she has a role to play. But perhaps we even need to look beyond Donna. But that's a great start -- and unusual, quite frankly. It's great to have a person like Donna on the short list if, in fact, she wants the job.

HARRIS: And Bob, what would Republicans' reaction be to Howard Dean running the DNC?

BARR: Yee-haw!

HARRIS: Yeah, see -- I couldn't have queued it up any better for you, could I?

BARR: I think it would be a mistake for the Democrat party. And I like Howard Dean here. He was a very eloquent spokesman for the party during the early primaries certainly. But to go with somebody who failed miserably as a candidate, to look to them for the future of the party, I think would be a real bad miscalculation for the Democrats.

HARRIS: OK...

REID: I think also Bob -- Bob hits on a really good point. We don't need to go -- as Democrats, we don't need to go for the trendy thing. We really need to get -- I keep saying back to basics. That's really where we need to go.

I've been reading all these crazy stories -- you know, the sky is going to fall down, and Democrats are like, "Where do we go from here?" Look, let's stick to what we know. We know that if we connect with people across the kitchen table and in their life and become relevant, we're going to win. That's what Ron Brown showed us...

HARRIS: Let's leave it there. Morris Reid and Bob Barr, we appreciate your time. Thank you.

BARR: Sure.

REID: Thank you.

HARRIS: Betty?

NGUYEN: Sounds like Bob has been practicing that Dean impersonation.

Well, it is almost time for the big holiday movies. Who's getting all the buzz? Sibila knows.

SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT: That's right, Betty.

Academy Award winner Tom Hanks takes us on a journey to a magical place in the new holiday film, "The Polar Express." I'll have the whole story when CNN's LIVE FROM continues.

(COMMERCIAL BREAK)

NGUYEN: Two months after being turned away on a flight to the U.S., the singer formerly known as Cat Stevens is being honored for humanitarian work. Yusuf Islam was presented with the Man for Peace Award in Rome today by former Soviet leader Mikhail Gorbachev. Islam was singled out for his charitable work involving children in the Balkans and Mid East. Now, in September, as you recall, he was denied entry in the U.S. and his plane diverted when his name turned up on a watch list.

We're going to shift gears now. Nashville was the place for stargazing last night with the annual Country Music Awards. But the big winner had barely fired up his acceptance speech before getting a wrap cue. Hate when that happens!

Sibila Vargas fires up her high-powered Tinseltown telescope for all the dish on the CMAs. hi there, Sibila.

VARGAS: Hey, Betty.

It was a huge night in Nashville as some of music's brightest stars were recognized at 38th Annual Country Music Awards. Gretchen Wilson, Keith Urban, Martina McBride, and Kenny Chesney were some of the evening's big winners.

Chesney garnered three awards, including the coveted Entertainer of the Year prize.

(BEGIN VIDEO CLIP)

KENNY CHESNEY, ENTERTAINER OF THE YEAR: You can turn that off, I'm going to stay up here. I waited 12 years. You ain't going to get me off in two minutes. You can turn it off the TV, we're going to be here a while.

(END VIDEO CLIP)

VARGAS: Well, unfortunately, Chesney never did a chance to finish the speech during the telecast, but the country crooner did say his piece backstage, where he thanked his family, his friends, and all of his fans -- Tony?

NGUYEN: Well -- Sibila, it's Betty. At least he got to say at the end, which is a good thing.

Hey, I want to ask you about "The Incredibles," because they are facing some stiff competition.

HARRIS: That's right.

VARGAS: Oh, yeah. Well, you know, "The Polar Express" is coming out. And if you thought "The Incredibles" were incredible, Tom Hanks is hoping you take his amazing ride on "The Polar Express." The animated feature chugs its way into theaters today. And we talked to Hanks and the people responsible for bringing this popular children's book to life.

(BEGIN VIDEOTAPE)

TOM HANKS, ACTOR: All aboard!

VARGAS (voice-over): "The Polar Express" tells the tale of how a young boy's magical journey to the North Pole helps him believe in the spirit of Christmas.

HANKS: Sometimes the most real things in the world are the things we can't see.

The Chris Van Allsburg story is so elegant and simple. The danger is screwing it up. The danger is like tacking on so much stuff that that's not recognizable anymore.

VARGAS: To accomplish this, filmmakers adopted a strategy for telling the story.

HANKS: They came to this idea that we'll start with the first line of the book and we'll end with the last line of the book. And everything that goes on in between, well, that's up for grabs.

VARGAS: Hanks voices many characters in the film.

HANKS: The emotional backbone of the movie really is Chris Van Allsburg's paintings. These are haunting, almost surrealistic, impressionistic versions of what Christmas Eve can be.

VARGAS: The responsibility of breathing life into those pages landed on the shoulders of special effects supervisors Jerome Chen and Ken Ralston.

JEROME CHEN, SPECIAL EFFECTS SUPERVISOR: It was constantly just looking at the imagery that was being created and making sure that our lighting and the feeling of whatever we were looking at was in the spirit of the book.

KEN RALSTON, SPECIAL EFFECTS SUPERVISOR: I always wanted to have a sense that even though you don't go to some of these places in the movie, like that alleyway in the distance or in through that tunnel, the audience and the children who are watching it would be able to just feel there was something out there.

HANKS: Brace yourself!

VARGAS: This holiday season, whether it's Van Allsburg's timeless story, a multi-million dollar special effects budget, or the unsinkable pairing of Hanks and Zemeckis, audiences will have their chance to believe in "The Polar Express."

HANKS: I want to believe but...

Believe.

(END VIDEOTAPE)

VARGAS (on camera): And we caught up with Hanks at the movie's L.A. premiere, and he told us that he hopes the movie ranks with the rest of the big screen classics like "A Christmas Carol" and "It's a Wonderful Life" -- Betty?

NGUYEN: And the animation in that movie is just incredible. All right, Sibila Vargas...

VARGAS: I know -- I believe, I believe.

NGUYEN: Exactly, we're believers! Thank you, Sibila.

VARGAS: Thanks, Betty.

HARRIS: Now, earlier this hour, the Fed announced its decision on interest rates, and for Wall Street's reaction, Rhonda Schaffler joins us from the New York Stock Exchange. Hi, Rhonda.

RHONDA SCHAFFLER, CNN SR. BUSINESS CORRESPONDENT: Hello, Tony and Betty.

Wall Street believes, actually, after looking at this Fed decision. No curve balls or surprises from the Fed, boosting rates for the fourth time this year. This was widely expected. And because of that, we're really seeing the market do pretty much what it did before. The Dow moving higher, gaining a bit more momentum, though, right now. The Dow Jones Industrial Average above 10,400. Nasdaq is slightly higher.

Analysts, of course, were also checking out what the Fed said, along with this interest rate move. The Fed did say that the labor market is improving and that inflation not a problem -- Betty, Tony?

NGUYEN: Rhonda, car buyers, they may be a little nervous about locking in these interest rates now that they're rising. But there is something new that GM is offering. What's that?

SCHAFFLER: Yes, give these carmakers an A-plus for effort as far as throwing new incentives out there for consumers. This is a new and different car incentive plan now. It's hoped for GM this will boost some sales.

Under the program, GM will give car buyers who purchase a new GM vehicle this month the same rate when they buy a second GM vehicle. Here's how it works. If you buy a car now and take a 36-month financing plan, you would get the same low interest rate on any GM car you buy over the next three years.

Now, of course, this might bring in some shoppers. GM sales have been very volatile this year, depending on whatever incentives it's throwing out there. Last month, GM, in fact, posted a five percent drop in year-over-year sales.

That is all the latest news from Wall Street. Tony, Betty, have a great day.

NGUYEN: He is. You have to buy two cars -- not just one, but two to get that. That's a big deal.

HARRIS: It is. Wow. Thank you.

NGUYEN: Thanks, Rhonda.

And that wraps up LIVE FROM.

HARRIS: "INSIDE POLITICS" is up next. Here's Judy with a preview. Hello, Judy.

WOODRUFF: Hi, Tony. Thanks to you and to Betty. It is the end of an era in the Bush administration. Today on "INSIDE POLITICS," we'll take a look at the controversial current attorney general and the man who may replace him.

Plus, conspiracy theories are making their rounds online. We'll hear from some experts who monitor the election results when INSIDE POLITICS begins in just a moment.

(COMMERCIAL BREAK)

NGUYEN: I'm Betty Nguyen at the CNN Center. "INSIDE POLITICS" is next after a look of stories now in the news.

Another juror has been booted from the Scott Peterson murder trial. That is two jurors out in two days. The juror, number five, was a doctor and lawyer and foreman of the jury. More details on "WOLF BLITZER REPORTS" at 5:00 Eastern.

Days or even hours, that's how long Palestinian officials believe Yasser Arafat has to live. The ailing Palestinian leader is said to be in a very critical stage of his illness. Officials are making plans for a funeral and burial possibly at the end of the week.

Now it's on to "JUDY WOODRUFF'S INSIDE POLITICS."

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