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Bush Defends "Eavesdropping," Demands Patriot Act Renewal; The President's Iraq Evolution; Ariel Sharon's Health Scare

Aired December 19, 2005 - 13:02   ET

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

KYRA PHILLIPS, CNN ANCHOR: Protecting your property. It's a phrase that one store owner actually really takes to heart. Just see how he makes sure that a would be robber didn't return. Here's Cornell Barnard from our Sacramento affiliate KXTV.
(BEGIN VIDEO CLIP)

CORNELL BARNARD, CNN CORRESPONDENT, (voice over): When 24-year- old Corey Allen Funk walked into this Modesto Quik Stop hoping to rob it, he never expected a manager like Edward Petrossi.

EDWARD PETROSSI, STORE MANAGER, BLACK BELT: I didn't want to hurt him but he made me.

BARNARD: It was like the suspect waited for all the customers to leave, then snuck up on Edward from behind.

PETROSSI: I soon as I approach here, I say, my God, he's coming right behind me. Suddenly I had to turn and say, what are you doing? Suddenly I saw the knife, a ridged knife, long like that, he goes, open the drawer, give me your money. Whoa.

BARNARD: What the suspect didn't know is that Edward has a black belt in six martial arts. On surveillance video, Edward goes into fighting stance, ready for action.

PETROSSI: I said, no, this is serious. I had to jump backwards and stand my -- you know, get ready position, grab something. I said, hey, you know, you want my money, come on, get it. Right there, I chased him. He just was shocked.

BARNARD: The surprised suspect runs for the door but the manager is right behind. And with a few high kicks, sends the robber tumbling right into the parking lot.

PETROSSI: That's the best place to jump into the air. I just did the (INAUDIBLE) hit right on his back. And he went all the way to the ground.

BARNARD: The young suspect almost loses his pants in the scuffle and flees to his car. But that's not the end of the story. At that moment, Edward remembers his cell phone camera.

PETROSSI: I said, my God, let me take your picture from this (INAUDIBLE). I take my cell phone, thanks to technology, I zoomed in, (INAUDIBLE), got it. BARNARD: He sure did. A clear shot of the suspects license plate number, which later led to his arrest.

(END VIDEOTAPE)

PHILLIPS: By the way, 24-year-old Cory Allen Funk is suspected of robbing four other stores. He's in jail on $250,000 bail.

A Florida court ruling today could mean a return to prison for convicted child killer Lionel Tate. A judge ruled today that Tate is mentally competent and set a hearing to determine if he should return to prison for allegedly robbing a pizza delivery man. Tate, now 18, is on probation for the 1999 killing of a six-year-old girl. He was originally given a life sentence but that sentence was later thrown out on appeal. The hearing on whether he should return to prison is set for February.

A looming deadline and still no contract. Things could get ugly for commuters in New York City just after midnight. Transit workers are threatening a massive strike. The union insists there's still time to make a deal. But workers at a pair of private New York bus lines already have walked off the job. Another 33,000 could soon join them. Up to 7 million people ride the New York subways and buses each day.

Many Americans gave generously to help the victims of Hurricane Katrina and other natural disasters this year. In fact, charitable donations may break a U.S. record. But now some other charities are feeling the pinch as donor fatigue sets in. CNN's Gary Nurenberg reports.

(BEGIN VIDEOTAPE)

GARY NURENBERG, CNN CORRESPONDENT, (voice over): There's nearly always a line at Washington, D.C.'s Bread for the City. The charity provides food to about 5,000 families as often as once a month.

SYLVIA WILLIAMS, FOOD BANK CLIENT: A very nutritious bag of groceries.

NURENBERG: Silvia Williams has been helped by Bread for the City for 10 years, works two jobs to get by, lives in a basement apartment with no heat. But because there's no refrigerator either, the temperature helps keep the food in those bags fresh.

WILLIAMS: You don't get one bag, or maybe two bags from the same place where you used to get three. You know, so it really has been a change since those storms.

NURENBERG: By "those storms," Silvia means the tsunami and Hurricanes Katrina and Rita, all of which led to huge charitable contributions. But Bread for the City is seeing a drop in donations of more than a quarter of a million dollars this year.

GEORGE JONES, EXECUTIVE DIRECTOR, BREAD FOR THE CITY: I haven't heard people and donors specifically say to me, I'm giving to Katrina. But we know that that's happening on a large scale.

NURENBERG: Bread for the City isn't alone. At a special holiday dinner Sunday sponsored by another food charity, Martha's Table, organizers said the natural disasters have had a clear impact on corporate giving.

LUCY LOWENTHAL, DIRECTOR OF DEVELOPMENT, MARTHA'S TABLE: They would have given to Martha's Table but at the time their corporate budget had been redirected down to the south.

NURENBERG: The impact is spotty. The Salvation Army says nationwide kettle donations are up 1 percent. A survey of charities by the Association of Fund Raising Professionals disclosed a drop in contributions in the weeks immediately after Katrina, but also shows an increase in recent weeks.

PAULETTE MAEHARA, PRESIDENT & CEO, AFP: There are segments of our membership that are experiencing some donor fatigue. But by and large, it certainly has not hit the majority of our organizations.

UNIDENTIFIED FEMALE: Miss Essie (ph), do you (ph) cook venison and eat it?

NURENBERG: Local charities recognize the need to help those in far-away places, but worry about the impact close to home.

UNIDENTIFIED MALE: All right, Betty (ph).

UNIDENTIFIED FEMALE: Thanks and God bless you both.

UNIDENTIFIED MALE: See you next month.

UNIDENTIFIED FEMALE: Thank you. See you next month.

NURENBERG: Gary Nurenberg, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: Earthquakes, hurricanes, suicide bombings. It's been a year that would test anyone's faith. Has it tested yours? Do you have questions about God? E-mail us at livefrom@cnn.com. The author of "Everything You Always Wanted to Know About God But Were Afraid to Ask" joins us live at the 3:00 p.m. Eastern hour.

(COMMERCIAL BREAK)

PHILLIPS: Israeli Prime Minister Ariel Sharon is expected to leave a Jerusalem hospital tomorrow. Doctors say the 77-year-old leader will make a full recovery after suffering a mild stroke yesterday. But there's already speculation how the incident will affect his political future. CNN's Guy Raz reports.

(BEGIN VIDEOTAPE)

GUY RAZ, CNN CORRESPONDENT, (voice over): Ariel Sharon lives to govern another day. What appeared at first to be a major scare, turned out not to be.

DR. TAMIR BEN-HUR, HADASSAH MEDICAL CENTER: I would like to make it clear that the prime minister at no time point never lost consciousness. There was no paralysis. And in our medical terms, he was not confused.

RAZ: On the streets of Jerusalem, most Israelis seemed satisfied that their prime minister would be just fine. But at the age of 77, will Ariel Sharon's health dissuade some Israelis from reelecting him next March?

ITIEL BEN-CHAIM, JERUSALEM RESIDENT: On the contrary. I think that we have to give him the next four or five years to do what he can do.

RAZ: Why? Well, Nava Bibi, a self-described central left voter, says Sharon's the only real grown-up capable of running a government filled with political right wings.

NAVA BIBI, JERUSALEM RESIDENT: We need him now more than that. He knows that. And because of that, he will overcome it.

RAZ: Ariel Sharon is this country's perennial political survivor. He's fought in every major Israeli war. He was almost killed in one of those wars. He's buried two wives and one son, and he's outlived nearly every single one of his political rivals.

His story and Michael Oren says it's part of what makes Sharon appealing to voters.

MICHAEL OREN, SHALEM CENTER: I think it's implicit in the Israeli political debate that here is a man who will not be standing for office probably another 10 years. That really this is his last great show on the Israeli political stage. And I think that's been an important factor here. I think it's actually been an important factor playing in Sharon's favor. People want to utilize Sharon's presence in history while they still can.

RAZ: All polls suggest Sharon's new centrist party, Kadima, will take the lion's share of seats in the next general election. But there's no doubt political rivals are quietly eyeing this hospital ward, preparing perhaps for the moment when they can finally grasp the reins of political power.

(END VIDEOTAPE)

RAZ: But, Kyra, that may not happen anytime soon. Aides to the prime minister are reporting that Ariel Sharon has been making jokes about his political opponents. Those opponents who have been riding Ariel Sharon's obituary.

Kyra.

PHILLIPS: Now when this happened yesterday, you saw Palestinians in Gaza celebrating on the streets after they heard that he was sent to the hospital. Is that truly the overall feeling? Or was this just a small group of Palestinians?

RAZ: Well, Kyra, many Palestinians revile Ariel Sharon. He is remembered as a man who has had a long stance against Palestinian self-determination. That, of course, has changed. So that really explains some of those celebrations we saw. But there was also quite a bit of consternation among other Palestinians. Palestinians who have come to the view that Ariel Sharon is the only Israeli leader with the clout to bring about a peace agreement. And, in fact, interestingly enough, among the world leaders who expressed their good wishes to Ariel Sharon in the hospital last night, one of the first to contact him was the Palestinian president, Mahmoud Abbas.

Kyra.

PHILLIPS: Guy Raz live from Jerusalem. Thanks, Guy.

As we head to break, let's take a quick look at the numbers. There we go. From Wall Street. Right now Dow Jones Industrials up three points. We're going to continue to follow the markets and have a lot more news for you straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: The world learned the identity of "Time" magazine's most influential news makers on Sunday, it's person of the year. Well, make that persons of the year. Bill and Melinda Gates and U2 frontman and activist Bono. "Time's" cited the trio's philanthropy and activism in the name of the world's poor and underprivileged. Bill Gates says the best thing he can do is to keep the third world's plight in the news.

(BEGIN VIDEO CLIP)

BILL GATES, "TIME'S" PERSON OF THE YEAR: Well, it has been a great year for global health, to get more visibility. And I think it is part of an upswelling of interest in seeing more equity. It's sort of the greatest inequity left. And the more people know about it, the more they want to act.

(END VIDEO CLIP)

PHILLIPS: All right. From "Time's" person of the year, to our singers of the year. Forget star search the way you've ever seen it. Our Lisa Clark is actually the new host of star search. The holiday classic.

LISA CLARK, CNN CORRESPONDENT: I'm no Simon Cowell but I'll do my best.

PHILLIPS: Wait, that's "American Idol."

CLARK: Bono's busy but we've found some other folks who are singing "White Christmas" for us. We've got them from Panama City, Atlanta and the Philippines, if you can believe it. We're going to start them off and let them take it away.

All right, guys, ready? Hit it.

CROWD SINGING: I'm dreaming of a white Christmas, just like the ones I used to know. Where the tee tops glisten and the children listen to hear sleigh bells in the snow.

PHILLIPS: Well, if you ever wonder how your favorite holiday tune came to be, all this week we're taking a look at some of your number ones. First up, the song became an instant hit during World War II.

(BEGIN VIDEOTAPE)

BING CROSBY, SINGER: I'm dreaming of a white Christmas

PHILLIPS, (voice over): Still dreaming of a white Christmas? Blame Berlin. Irving Berlin. He came up with the tune 65 years ago while whiting a song for each of the major holidays all for the movie "Holiday Inn."

CROSBY: And children listen to hear sleigh bells in the snow.

PHILLIPS: Recognize that voice? Crooner Bing Crosby was the first to record "White Christmas," a song of hope for a war-torn nation in 1942. It was such a hit that a dozen years later Hollywood made a movie based on it.

SINGING: May your days be merry and bright.

PHILLIPS: Since then, a lot of artists have recorded "White Christmas," making it the best-selling Christmas single of all time. And every year many of us can't help wishing for a white Christmas, even if it's 70 degrees outside.

CROSBY: And my all you Christmases be white.

(END VIDEOTAPE)

PHILLIPS: Well coming up on LIVE FROM, belly laughs await. Some kids are just fine with a visit to Santa. But for others, he's a big, scary guy. Severe cases of Claus-trophobia coming your way.

And did Santa scare you as a child? Has your child ever cried in his lap? Well, if you have the pictures to prove it, we'd love to see them. E-mail us at livefrom@cnn.com. We'll share some of them a little later. And one note, though, make sure they're your personal photos, not professional snapshot, or we're going to have to pay somebody out a lot of money.

More LIVE FROM right after a quick the break.

CROWD SINGING: May all your Christmases be white.

CLARK: Next verse, guys.

CROWD SINGING: I'm dreaming of a white Christmas. With ever Christmas card I write. (COMMERCIAL BREAK)

PHILLIPS: The Constitution, a congressional resolution and war against an unconventional enemy. All rationales cited by the White House for spying on the communications between terror suspects in the U.S. and other abroad without so much as a retroactive request to a secret court. That post-9/11 warrantless eavesdropping came up loud and clear in President Bush's ninth and final news conference of 2005. He said the only thing he regrets is that somebody tipped off "The New York Times."

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This program has targeted those with known links to al Qaeda. I've re-authorized this program more than 30 times since the September 11th attacks and I intend to do so for so long as the nation faces the continuing threat of an enemy that wants to kill American citizens.

There's a process that goes on inside the Justice Department. And I presume -- about leaks. I presume that process is moving forward. My personal opinion is, it was a shameful act for someone to disclose this very important program in a time of war.

(END VIDEO CLIP)

PHILLIPS: Mr. Bush is also pointing fingers at the senators who blocked renewal of The Patriot Act. Most of which will otherwise cease to exist at years's end. CNN Senior Political Analyst Bill Schneider trying to figure out who's more appalled at whom.

Hi, Bill.

BILL SCHNEIDER, CNN CORRESPONDENT: Hi, Kyra.

PHILLIPS: Well, let's talk about the president justifying the use of his domestic surveillance without warrants. He continues to stick by what he believes in, and that is he did what he had to do.

SCHNEIDER: To protect the American people. He said doing it without warrants enables him to move faster, to be very quick in protecting the American people. He made a distinction between detecting and monitoring.

He said detection was the activity for which he felt he could not request warrants, he wanted to act very quickly. Monitoring, he said, is something else. And for that, he would go to this agency, the Foreign Intelligence Surveillance Agency, which would issue a warrant.

It's like a court. It's a secret court that has in the past overwhelmingly granted the administration permission. And he said he would do that when monitoring is required. But when quick detection is required, he said he will act without warrants because he says he has the constitutional authority and he believes authority granted to him from Congress. PHILLIPS: And of course, Bill, there's this back and forth now about the president broke the law. Some saying, no, he didn't; he did what he had to do. Others saying, yes, he did, but it's for the sake of national security. Now, members of Congress calling for hearings.

This isn't going to go away, is it?

SCHNEIDER: It's not going to go away very quickly. The question is, how much resonance will it have to the American people?

On the one hand, if they believe the president is doing this to protect them and to keep terrorists who he argued are in the United States -- after all, look what happened on 9/11. Americans may understand it.

On the other hand, his critics can argue, what is the big deal about getting a warrant? These warrants are routinely issued by the Foreign Intelligence Surveillance Agency. So it doesn't seem like such a terrible ordeal simply to request a warrant.

PHILLIPS: Critics of the president calling for benchmark. For example, give us a timetable for when U.S. troops will get out of Iraq, et cetera, et cetera. And the president is saying -- well, how do you think he's going to continue to respond to these critics? Because to this point he's basically said, I'm not going to do that, right?

SCHNEIDER: And that's what he continued to say at his press conference this morning. He was dismissive of the idea of benchmarks.

His critics are not calling for timetables. Most of them are not anymore. But now they're saying we want benchmarks to show exactly how close we are to victory, what are the benchmarks that will tell us when U.S. troops will be able to withdrawal.

The president was very disdainful of the idea. He said, benchmarks, he doesn't want anything to do with benchmarks. He says our withdrawal, the troops' withdrawal from Iraq, will be determined entirely by conditions on the ground, and he doesn't want to hear any more talk about benchmarks.

PHILLIPS: So how do you think he's selling this, like you said, plan for victory? And are Americans buying whatever it is that he's saying?

SCHNEIDER: Not really. The polling so far has indicated that they don't think the U.S., the Bush administration in particular, has a plan for victory. And I think the reason why is this: Americans have confidence in American troops. They believe they know what they're doing and they can, if allowed, get the job done.

Look what they did when they overthrew Saddam Hussein in a very short time. But when the president talks about victory in Iraq, he's talking about something else. Not American troops, he's talking about Iraqis. He's talking about confidence in Iraqis leader to hold the country together, to govern responsibly, to hold all these warring sects and ethnic groups into one country. He's talking about Iraqi security forces, the police and the military.

He's asking Americans to have confidence, not that we can get the job done, but that they can get the job done. And when asked to do that, Americans are kind of reluctant. They don't know how much confidence they feel in those Iraqi leaders and Iraqi security forces.

PHILLIPS: Well, the president keeps pumping up the Patriot Act, too, doesn't he?

SCHNEIDER: Yes, he was very emotional about that. He said it was inexcusable for the United States Senate to block renewal of the Patriot Act, to filibuster that. And he implied pretty clearly that senators who block the Patriot Act may have a price to pay in the 2006 election.

He mentioned senators who represent New York. Who could that be? And senators who represent Los Angeles. And he said Las Vegas. That's the home of the Senate Democratic leader, Harry Reid.

He said let those senators be warned they're going to have to have an accounting to the people in those cities what they have done to protect the people in those cities. So it was a clear political warning.

PHILLIPS: Bill Schneider.

Good talking to you. Thanks, Bill.

SCHNEIDER: Sure, Kyra.

PHILLIPS: Well, the president's news conference caps a two-and- a-half week campaign to boost support for the war in Iraq and Mr. Bush's leadership in general. Has it worked? A new CNN-"USA Today"- Gallup poll is released this afternoon. You're going to see the results today on "THE SITUATION ROOM," beginning at 4:00 p.m. Eastern, 1:00 Pacific, right here on CNN.

And let's take a look -- a closer look now at how the president's rhetoric on Iraq has evolved over the years.

Here's CNN senior analyst Jeff Greenfield.

(BEGIN VIDEOTAPE)

JEFF GREENFIELD, CNN SR. ANALYST (voice-over): Three years ago it was Saddam's arsenal and his intentions that were Bush's key arguments for intervention.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If we know Saddam Hussein has dangerous weapons today -- and we do -- does it make any sense for the world to wait to confront him as he grows even stronger and develops even more dangerous weapons? GREENFIELD: By early 2004, with Saddam gone and with no evidence of weapons of mass destruction, Bush was painting a rosy picture of steady post-war progress.

BUSH: Month by month Iraqis are assuming more responsibility for their own security and their own future.

GREENFIELD: At the Republican convention later that year, as the insurgency and as U.S. casualties were growing, the president spoke expansively of what success in Iraq could mean.

BUSH: Free governments in the Middle East will fight terrorists instead of harboring them. And that helps us keep the peace.

GREENFIELD: But in recent weeks, the president's message and his venues have shifted. Instead of an audience of troops or hand-picked supporters, Mr. Bush spoke earlier this month at the internationalist- minded Council on Foreign Relations. And Bush acknowledged past errors in strategy and tactics.

BUSH: The city is still not receiving enough electricity. Corruption is a problem at both the national and local levels of the Iraqi government. Reconstruction has not always gone as well as we had hoped.

GREENFIELD: And in speaking to the World Affairs Council, he even took questions, including critical ones.

UNIDENTIFIED FEMALE: I would like to know why you and others in your administration invoke 9/11 as justification for the invasion of Iraq...

BUSH: Yes.

UNIDENTIFIED FEMALE: ... when no respected journalist or other Middle Eastern experts confirm that such a link existed.

BUSH: There was a serious international effort to say to Saddam Hussein, you're a threat. And the 9/11 attacks accentuated that threat, as far as I'm concerned.

(END VIDEOTAPE)

PHILLIPS: Once again, that's CNN's Jeff Greenfield reporting.

Well, U.S. military officials have released two key members of Saddam Hussein's alleged weapons of mass destruction program. Both are women and both had been regarded as high-value prisoners.

One was dubbed "Dr. Germ" because of her role as the director of Iraq's bioweapons program in the 1980s. The other, known as "Mrs. Anthrax," was a former top official in Hussein's Baath Party and a biotech researcher.

Both women, along with several other top detainees, were freed Saturday without charges. And according to U.S. military, they are no longer considered a security threat.

So just who are these two women once considered high-value detainees by the U.S. coalition? Let's check the facts.

(BEGIN VIDEOTAPE)

TONY HARRIS, CNN CORRESPONDENT (voice-over): Huda Salih Mahdi Ammash, better known as "Mrs. Anthrax," was one of the top women in Saddam Hussein's regime. Though Ammash was born in Baghdad, she is an American-educated scientist. She earned her master's in microbiology from Texas Woman's University in Denton and her Ph.D. from the University of Missouri in Columbia.

Officially, Ammash ran Iraq's youth activities and the trade bureau. But U.S. agents believe she oversaw the country's biowarfare program. She surrendered to coalition forces in early May, 2003.

The only other Iraqi women known detained by U.S. forces was Dr. Rihab Taha, nicknamed "Dr. Germ." She is a British-educated Iraqi microbiologist who worked in Hussein's biological weapons program. Taha headed Iraq's government lab that reportedly weaponized anthrax during the 1990s. On May 12, 2003, she surrendered to U.S. forces.

(END VIDEOTAPE)

PHILLIPS: Members of the House of Representatives are rushing to get home for the holidays after an all-night session that saw passage of a pair of controversial measures. One of them is designed to reduce the federal budget deficit by almost $40 billion over five years.

Democrats attacked the plan, saying it reduces medical and educational benefits for the poor. The Senate may vote on that bill later today.

Also approved by the House, a measure attached to a major defense bill that would allow oil and gas exploration in the Arctic National Wildlife Refuge in Alaska. That measure could spark a Democratic filibuster in the Senate.

It's the Christian season of Christmas and the Jewish holiday of Hanukkah, a time of goodwill toward men and women. But many Muslim- Americans still feel that they're being targeted. Trying to bridge the cultural divide coming up on LIVE FROM.

Also coming up on LIVE FROM, belly laughs await. Some kids are just fine with a visit to Santa, but for others he is a really big, scary guy. Severe cases of Claus-trophobia coming your way.

(COMMERCIAL BREAK)

PHILLIPS: Winning hearts and minds in the Muslim world. The U.S. is showing progress on that front, due largely to the generosity of Americans.

A new poll was commissioned by the group Terror Free Tomorrow. It shows the favorable opinion of the U.S. has recently doubled to more than 46 percent in Pakistan.

The reason? U.S. efforts to help victims of the massive earthquake in the Kashmir region.

Sixty-five percent of Indonesians also are looking more favorably on America thanks to U.S. relief efforts after the tsunami disaster.

President Bush cited the 9/11 terror attacks as a reason for invading and occupying Iraq, but many Muslims in America say they still haven't been able to shake the stigma that they've encountered since.

CNN's Kareen Wynter brings us one family's struggle.

(BEGIN VIDEOTAPE)

KAREEN WYNTER, CNN CORRESPONDENT (voice-over): Aziza Hassan and her brothers are a long way from home.

AZIZA HASSAN, MUSLIM AMERICAN: Hello, Idav (ph). How are you?

WYNTER: A 24-hour drive from Kansas to California, the trip this family says was well worth it for a State of the Union Address on the American-Muslim community's struggle discrimination.

HASSAN: I find myself asked all these questions. You know, "Why are you still Muslim? Why are you with these terrorists" and whatnot?

WYNTER: The Muslim Public Affairs Council's annual convention helps families like the Hassans confront these challenges, the social, religious and political backlash because of their identity.

This former U.S. Muslim chaplain sent overseas by the military in 2003 couldn't believe what happened to him on his return flight home. He was accused and later cleared of espionage.

JAMES YEE, CHAPLAIN: I found myself in a situation where I was stopped by Customs officials, and I would quickly be arrested under suspicions that I was a terrorist spy.

WYNTER: Some say this year's international headlines have only fueled the stereotype of Muslims: the terrorist attacks in London, Egypt, and Jordan, the riots in France, insurgent-plagued Iraq, attacks orchestrated in the name of Islam.

UNIDENTIFIED FEMALE: For Muslim-American youth the London attacks, you know, put them in the deer in the headlights kind of position. They were able to, you know, for a few years after 9/11, to distance themselves from the reality of terrorism and to say, that's not me. We don't do that. Now we're just beginning to deal with the aftermath of that.

WYNTER: Aziza Hassan hopes this conference will help her and her brothers define their roles in society...

HASSAN: I am an American. I am a patriot. I care about my community.

WYNTER: ... and turn their fears into action by helping others bridge the cultural divide.

Kareen Wynter, CNN, Long Beach, California.

(END VIDEOTAPE)

PHILLIPS: Eric Clapton banned, George Michael muzzled, Kenny G. silenced, all the work of Iran's hard-lined president, Mahmoud Ahmadinejad. But his latest decree doesn't stop with those three popular artists. It bans all Western music from the country's radio and TV stations. He finds the songs indecent and not fit for the ears of Iranians, young or old.

One popular guitarist calls the ban terrible, adding that the move shows a lack of knowledge and experience. For nearly a decade, Western music, as well as films and clothing, have been widely available in Iran.

Suspected terrorists arrested in Spain. Who are the suspects and were they recruiting fighters to join the insurgency in Iraq? A live report from Madrid coming up on LIVE FROM.

(COMMERCIAL BREAK)

PHILLIPS: Now, take a close look at that picture. It's not just the kids crying. Santa is crying. We're going to tell you the story behind this picture.

Did Santa scare you as a child, or did your child ever cry on his lap? Well, if you have the pictures to prove it, we'd love to see them. E-mail us at LIVEFROM@CNN.com. We're going to share some of them just a little later on.

And one note, though. Make sure they're your personal photos, not professional snapshots, or we'll have to owe someone a lot of money.

Now, just in case you haven't noticed, it's starting to cost more to fill your gas tank, again.

Susan Lisovicz says this may be the beginning of another upward trend for gas prices.

Susan, we were talking about this, 30 cents in the next week or two?

SUSAN LISOVICZ, CNN FINANCIAL CORRESPONDENT: Yes. I mean, and the predictions for '06, Kyra, are far worse, unfortunately. We're not -- we're not talking about things that we don't know about, like hurricanes. We are talking about things that we do know about. But let's concentrate on the good things.

First of all, gas prices actually fell for three and a half months. Since they peaked above $3 per gallon in the weeks after Hurricane Katrina, prices have fallen cents. But, according to a new Lundberg survey, gas prices are on the rise again, up more than 8 cents over the past two weeks. The national average now $2.21 per gallon for self-serve regular, and that may be a drop in the bucket compared to next year's possible increases.

Lundberg predicts a rise of about 57 cents per gallon by the end of July because of required deductions in sulfur content and a new rule that American gasoline include 4 percent ethanol. By the way, the price one year ago, $1.81 a gallon, a real bargain.

Despite those high gas prices, though, this may be a good time to buy a new car. "Consumer Reports" magazine says the latest round of price incentives by domestic automakers are good deals, and some of them are even better than the highly-publicized employee discounts for everyone that were available last summer. But consumers may have to act fast.

General Motors "Red Tag" event and Ford's "Keep it Simple" both expire January 3. So, if you still have any money left in your pockets, get over to a showroom.

Oil prices, by the way, are dropping today. And shares of Pfizer are jumping more than 8 percent after the pharmaceutical giant won a patent challenge to its top selling Lipitor, a cholesterol-lowering drug. But that's not translating into gains here on Wall Street today.

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

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