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CNN Live Today

Yasser Arafat to be Flown to Cairo; Battle Still Ongoing in Falluja; President Bush to Make Speech at Arlington National Cemetery

Aired November 11, 2004 - 11:01   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.


DARYN KAGAN, CNN ANCHOR: President Bush carrying out the ceremony at the Tomb of the Unknowns, a tomb holding the remains of American soldiers from World Wars I and II, also the Korean conflict. And there was from the Vietnam War as well, but those remains were later identified to belonging to Air Force First Lieutenant Michael Blassie. And those remains were returned to his family.
We're going to hear from President Bush probably in about eight minutes. He'll be speaking, and you will hear those Veterans Day comments right here on CNN.

RICK SANCHEZ, CNN ANCHOR: Meanwhile, what we want to do is try and catch you up. It's been a very busy day bringing you live events. But there is a lot happening, so let's do that now. And here is a look at what's happening right "Now in the News."

Palestinian leader Yasser Arafat is being hailed as a symbol of the quest for a Palestinian homeland. But also assailed as a sponsor of violence and terrorism. Arafat's body is being flown to Cairo, where his funeral will be held tomorrow, a military funeral. We will have extensive coverage of Mr. Arafat's life and death throughout this coverage.

Also, as U.S. and Iraqi troops keep up their offensive in Falluja, we're learning more details about a disturbing discovery there. A Marine official says that troops found a man beaten and shackled at a site believed to be a hostage slaughterhouse, a place where people may have been beheaded. The military is sorting through CDs and tapes and documents found, and some of the blood-stained area as well.

Now, a suicide car bombing killed at least 19 people and wounded 15 others in Baghdad today. The bomb went off on a busy street in the city's commercial district. More than two dozen cars were destroyed and burned, and 20 shops and buildings were damaged by this explosion.

President Bush leads the nation in honoring U.S. veterans, as you've been watching here live and you're seeing now as well in this live picture that we're taking for you. He has been taking part in a wreath-laying ceremony this hour at Arlington National Cemetery. We' re going to have live coverage of the president's remarks at the Veterans Day observance, and that's coming up, oh, in about six minutes or so.

And as we catch you up, it is 11:03 on the East Coast, 8:03 on the West. From the CNN Center in Atlanta, I'm Rick Sanchez. KAGAN: And good morning, once again. I'm Daryn Kagan. Our busy day continues.

We're going to focus extensively this hour on the death of Yasser Arafat. Just so you know, though, once President Bush begins to speak, in about five minutes, from Arlington National Cemetery, we'll be showing those comments to you live here on CNN.

But now to Yasser Arafat, who was an enduring symbol of Palestinian nationalism, a man who was in the same breath viewed as a brutal terrorist and a Nobel Peace Prize recipient. Just minutes ago in Paris, we were watching these pictures live here on CNN. It was in Paris last night where Yasser Arafat died last night.

A ceremony as his body is placed aboard a plane for a flight to Cairo. A military funeral is planned for there tomorrow. And then in Ramallah, Palestinians filling the streets of the West Bank city with raw grief for their longtime leader. Arafat will ultimately be buried at his Ramallah headquarters tomorrow, not in Jerusalem, as he had wished.

And new leaders are sworn in for the PLO Palestinian Authority. We're going to tell you who these men are this hour, and whether they might be the generation of leaders that the Bush administration hope to see.

SANCHEZ: First to Paris, though. That's where Arafat lingered near death for the better part of 13 days at a French military hospital. CNN correspondent Jim Bittermann is beginning our coverage. He's at the Paris airport, where he's been covering this event and brings us now the latest from there.

Hi, Jim.

JIM BITTERMANN, CNN CORRESPONDENT: Hi, Rick.

The ceremony is over. It was a very brief ceremony featuring a Republican Guard band, Honor Guard. They marched out President Arafat's coffin from a helicopter that had come here from the hospital -- it's not far away. Marched the coffin around before the crowd of dignitaries, about -- I'd say about 150 dignitaries here, including Arab world diplomats, the French prime minister, foreign minister, the speaker of the national assembly, a number of the leading figures from the Islamic world in France, all of whom had reason to know Arafat along the line and wanted to come out here and honor his -- say good- bye to what essentially was an old friend for a lot of them.

Now, what we're waiting for right now is there is a crowd of dignitaries which includes Suha Arafat, Arafat's wife, as well as his nephew, Nabil Sha'ath, Leila Shahid, and a number of leading Palestinian figures who are in the VIP lounge. I think you can see it behind me. And they are going to assemble in a couple of minutes here and get on these buses and be taken over to the aircraft.

They're going to be flying back to -- back to Cairo, back to the Middle East, with the same plane that will be flying Arafat's coffin back there, a military version of the Airbus 320, for about a four- and-a-half hour flight or so to Cairo -- Rick, Daryn.

SANCHEZ: Jim Bittermann following that story for us. We thank you, Jim. We'll be getting back to you as the story develops.

Meanwhile, President Bush calling the death of Yasser Arafat a significant moment in Palestinian history and expressing new hope for Middle East peace. Let's talk to CNN's Dana Bash. She's at the White House this morning, following this for us.

Well, let's hold off on that, yes.

KAGAN: Yes. We're going to get to Dana Bash in just a minute just because -- and we only are changing the order here because we have an opportunity to talk with our Jane Arraf. She's been embedded with the U.S. Army in Falluja as the incursion takes place on that Iraqi city. Jane joining us by the phone right now.

Jane, can you hear us? Jane Arraf in Falluja.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Daryn, I can hear you now. I'm sorry. It's awfully noisy.

We're in a moving armored personnel carrier. The fighting here is continuing. This is an expanded search-and-attack operation. We're with the Army doing complementary operations with the Marines. And the night sky here, Daryn, has been lit by almost constant explosions and the sound of gunfire as they continue to clear these streets.

They're finding insurgents still in allies, insurgents still in buildings. And they're launching artillery airstrikes and engaging them with machineguns. An indication that, although there still are pockets of insurgents, there are very active pockets -- Daryn.

KAGAN: And Jane, the sounds that we're hearing around you, it sounds more urgent, it sounds louder than when we've talked to in the last few days. Can you compare the atmosphere and the intensity of the fighting, please?

ARRAF: Well, we're actually in the middle of this operation. So what you're hearing around you at this moment are the sounds of armored personnel carriers and some tanks moving around as they go through this industrial sector.

They've been knocking down walls, actually clearing this again. They were in this sector before, but they keep coming under fire. And they're doing expanded operations, moving down through the city.

In just a little while, if we're still talking, Daryn, there's going to be a huge explosions as they set off a line charge, detonating improvising explosive devices. This place is absolutely littered with homemade bombs.

They're finding all sorts of things. Earlier, I spoke to a Marine general who said that indeed they had found a house where they suspected hostages had been slaughtered. He said he saw -- he saw blood on the floor, blood on the courtyard. (UNINTELLIGIBLE) hostages -- Daryn.

KAGAN: All right. Jane Arraf, embedded with the U.S. military in Falluja. If we hear explosions as we're talking to you, we know that is planned, controlled explosions as they move on through the city. Thank you and be safe as you cover the story, please -- Rick.

SANCHEZ: Boy, that does sound loud, doesn't it?

Let's go now to Dana Bash. She's following the president today, and what really becomes even more important for the president in terms of what Tony Blair has long wanted to talk about, and that is the Middle East peace process. And it just so happens that Mr. Blair will be arriving at the White House tonight.

Dana, over to you.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Hi, Rick.

Well, that's right, Tony Blair is going to come to the White House, the first foreign leader to meet with Mr. Bush since he won reelection for his second term. And as you mentioned, the two men will likely talk about the Mideast and how Yasser Arafat's death will change the U.S. perspective and the U.S. engagement on the Mideast peace process.

As you mentioned, Tony Blair is somebody who has long wanted Mr. Bush to be engaged in the process -- he, along with other European leaders. And earlier you read a part of Mr. Bush's statement that the White House released last night. It was quite matter of fact.

As you mentioned, he said that the death of Yasser Arafat is a significant moment in Palestinian history, and then very quickly in this statement moved on to talk about the fulfillment of Palestinians' aspirations for an independent democratic Palestine looking forward. And the White House, senior Bush aides, the president himself have made it abundantly clear they are looking at this particular event as something that, of course, the Palestinian people are going to mourn with the death of Yasser Arafat.

But as a hope that perhaps new leadership, even if it is the former prime minister, Mahmoud Abbas, somebody who Mr. Bush has worked with and has talked about in glowing terms, or Ahmed Qorei, who is the current prime minister, that those two can provide an opening to a new Mideast peace process and to -- and a new chance for the Palestinian people. This is something that the White House has made clear that they have had really no desire to work with Yasser Arafat, that much to the chagrin of some European leaders, even those in France that said that President Bush should have dealt with Yasser Arafat.

But at this point, the MO here at the White House is to look towards the Palestinian peace process and move on.

SANCHEZ: Dana, I'm looking over at my monitor here and I'm seeing that the president may shortly be coming up. I know he's going to be making some remarks. So stay with us for a little while here.

Give us a preview, if you will, of the president's remarks that he's going to be making on this -- on this important day.

BASH: Rick, you know, it's always quite a poignant moment for any president to speak at the Tomb of the -- to lay a wreath at the Tomb of the Unknowns and then, of course, to speak at Arlington National Cemetery, commemorating Veterans Day. But it's been especially poignant for this president who has never given this kind of speech without having troops in battle and troops at war, first, of course, in Afghanistan, and now in Iraq.

And the president is going to give a similar speech, we are told, to those in the past, talking about the sacrifices and service of veterans in past wars, since World War I, World War II, but also, of course, the sacrifice of the people who are on the ground and fighting as we speak, and veterans who have come back from the wars that he's presided over. Of course Iraq is a war that has lost 1,157 U.S. troops. And this speech, of course, will come as troops are engaged in a much-anticipated battle of Falluja to try to reclaim that city, hopefully to get things moving towards elections in Iraq.

That is something that is very much on the president's mind, something he talked about yesterday. And, of course, this speech, talking to veterans about veterans, comes after the president had a very long campaign talking about some of the controversy in the war in Iraq, particularly, as Democrats said, that perhaps Mr. Bush did not send enough troops to battle in Iraq, did not plan well enough for the war in Iraq.

Mr. Bush just as early as recently as yesterday talked about the fact that he does believe that at this point there are enough troops on the ground. But he's willing to listen to the commanders on the ground to see whether or not they need more in the future -- Rick.

SANCHEZ: You know, it's interesting, Dana, as we hear the colors here just before the president speaks, across the Atlantic they're saying to Tony Blair, you're going over to the United States to get your orders from the president. Will there be an assertion of Tony Blair during this trip? Do you expect that Tony Blair will try to assert himself more perhaps than he has in the past because of the criticism that he's been getting overseas?

BASH: Well, you know, that's going to be something that's interesting to watch. Tony Blair has had some criticism overseas really since -- since day one, since before the Iraq war even began.

He really was at odds with many of his European leaders, with many of the people in his own country by siding with President Bush. So that criticism is nothing new.

Now that there is sort of a new phase, that the president has gained a second term, that they're looking at, they hope, elections in Iraq and a new kind of Iraq, it will be interesting to see if Tony Blair changes his tune at all. But certainly Mr. Bush talks to Tony Blair quite frequently, more than any other world leader, and the two are quite close. So it will be interesting to see how they deal with what's going on in the future publicly. SANCHEZ: And while we have you there, and we're waiting for the president to speak, anything new to report as far as the president's cabinet positions are concerned? We know that we're now looking at the possibility of a new Hispanic member of his cabinet. What can you tell us about that?

BASH: At this point we think we don't -- we won't likely have new announcements today. But certainly we are anticipating a lot of -- a lot of announcements in the near future.

Of course, most immediately, you mentioned we do know who is going to fill -- at least who was nominated to fill the attorney general spot. We don't yet know who will be nominated to fill the secretary of commerce, that particular spot.

Secretary Evans of course is leaving. He announced that earlier this week.

There are a lot of people that have been sort of floated to be in the running. Among them, perhaps, the president's chief fund-raiser during his campaign, Mercer Reynolds. Even as somebody who ran his campaign, Marc Racicot, the former governor of Montana.

But those are sort of names that are out there. Unclear exactly when or who will be nominated for that. Of course we are still waiting to hear the very big announcements to see whether or not there will be imminent changes in the president's national security team, of course from the secretary of state, to the president's own very close advisers, National Security Adviser Condoleezza Rice.

HEMMER: And hopefully we'll be hearing from Alberto Gonzales, the president's legal counsel there, if he indeed is confirmed for this position, and all the brouhaha, I imagine, which will come between now and then. Dana Bash, thanks so much for that report. We will be getting back to you as we prepare to hear the comments of the president there speaking at the Veterans Day ceremony.

KAGAN: We're going to keep on this live picture here waiting for President Bush's comments. And as you were mentioning, the possibility of -- as you were talking with Dana Bash, the possibilities of the changes in the cabinet.

He is there with Secretary of State Colin Powell. Before the election, a lot of speculation that Colin Powell wanted to leave this administration. And yet now some thinking, with others leaving, and also the death of Yasser Arafat, that this might not be the time, that there might be more work for Secretary Powell to do.

SANCHEZ: Interesting that Colin Powell is not going to be attending any of Yasser Arafat's memorials. As a matter of fact, he's sending a deputy instead.

What it says about the United States and its relationship or lack thereof with Yasser Arafat? Volumes. But will this, with Yasser Arafat's absence now, because of his death, lead to a new era in United States engagement in this process? Well, that certainly seems to be what a lot of people are hoping.

KAGAN: Yes. And yet consistent. This Bush White House has been consistent with its status and its feelings on Yasser Arafat.

He was never welcome at the Bush White House. President Bush did send Secretary of State Colin Powell a few times to go meet with Yasser Arafat. But as those relations deteriorated, even that came to an end.

SANCHEZ: Let's do this, let's take a quick break. As soon as we come back, we'll hopefully be able to have the president's comments. Let's get into it.

We'll be right back in just a moment here on CNN LIVE TODAY.

(COMMERCIAL BREAK)

KAGAN: All right. We are monitoring two separate live events, two very important event taking place in different parts of the world.

First, let's show you the live picture. This is Arlington National Cemetery. President Bush you see there, of course, He any minute is about to make remarks. And you will hear those comments on this Veterans Day live here on CNN.

SANCHEZ: And the other event we're covering has been coming, as you say, Daryn, from the other part of the world. This is in Paris. And it's soon to be in Cairo, Egypt. That's where that plane is destined for with the body of Yasser Arafat.

Now, we were told by our producers just moments ago that you might actually be able to see -- or we have been able to see when we look closely, the outline of Suha Arafat, Mr. Arafat's wife, who's on the plane. She was quite prominent today in this ceremony taking place here at the air base there in Paris. It's five minutes by helicopter from the hospital where Mr. Arafat died last night.

KAGAN: And it's interesting to see her today, because we have not seen her in recent days. Earlier in the week she was very visible, and probably more important, very vocal. There you can see a picture of her through the window of the airplane.

But a very vocal -- right before that delegation arrived from Ramallah, the Palestinian leadership delegation, she did not want them to come to Paris. And by French law she had complete control and access over the health care of her husband and who was able to see him. And apparently a power struggle in terms of what was to happen to him.

SANCHEZ: And now the funeral, which will be taking place, interestingly enough, in Cairo, Egypt.

There's some mystery regarding the background of Yasser Arafat. It is -- according to most historians, he was born in Egypt and then went to meet members of his family in Jerusalem. Members of his family will tell you that he was actually born in Jerusalem and that has never actually been straightened out.

But nonetheless, he certainly played a very prominent part in the Egyptian affairs in the past, which is also a place where many of the Arab ceremonies have been held as well. So it seems fitting that Mr. Arafat would have that ceremony there.

Why not have it in Ramallah or in some part of the West Bank, or perhaps in Gaza? Because Arab leaders are saying that they feared that the Israelis wouldn't let many of them through. So they chose to go to Egypt instead.

KAGAN: Well, the other issue here, it was ultimately his dream, his wish to be buried in Jerusalem. The Israelis saying that wasn't going to happen. So he will ultimately be buried in Ramallah, and yet the Palestinian current leadership saying, well, that's temporarily. They believe that one day they will have part of east Jerusalem and that they will remove Yasser Arafat's remains and the shrine to him into that part of the city.

SANCHEZ: Yes, Saeb Erekat is determined. He says one day east Jerusalem will be again.

And you have to remember, you know, we talked about this with the professor not long ago when he was joining us. And we talked about that moment where Ehud Barak and Yasser Arafat and Bill Clinton came so close to coming up with a deal that would bring the two-state solution that we've all often talked about. And most people will tell you the sticking point was east Jerusalem.

There are 176,000 Israeli settlers still living there, at last we checked. And for the Israelis, it's not something they're willing to give up. For the Palestinians, it's very, very important. So east Jerusalem is well entrenched, very much at the center of this entire argument.

KAGAN: This jetliner about to take off. It will head to Cairo, where there will be a military funeral, and then ultimately on to Ramallah.

We're going to take a break. We are standing by for President Bush's comments from Arlington National Cemetery.

We're back after this.

(COMMERCIAL BREAK)

KAGAN: An assistant secretary of state will represent the U.S. tomorrow at the funeral of Yasser Arafat. The Bush administration says the Palestinian leader's death may breathe new life into the Mideast peace process. For more on the U.S. reaction to the death of Yasser Arafat, let's bring in our State Department correspond, Andrea Koppel.

Andrea, good morning again.

ANDREA KOPPEL, CNN STATE DEPT. CORRESPONDENT: Good morning, Daryn.

You know, the reason the Bush administration is hedging its bets right now is because it has no idea who the next Palestinian leadership will be. And we're not talking about a single individual. Mostly likely it will be a collective leadership, the way they had in China when Mao Tse-Tung and Dung Shao Ping died.

There was no individual who had the charisma, the clout, the credibility with the Chinese people in that case. And in this case, with the Palestinian people to be able to wear all the hats that Yasser Arafat did. And the problem is, Daryn, that the next Palestinian leadership could be worse than Yasser Arafat, which is why the Bush administration is not ready to give carte blanche, saying they'll deal with whoever the Palestinians choose.

KAGAN: Andrea, let's talk about who runs the place where you are reporting from, the State Department. Colin Powell, a lot of speculation before the election that he would be among the first cabinet members who would want to move on. But now that others are moving on, and now that the death of Yasser Arafat has taken place, is there a sense that there might be work and more reason for Colin Powell to stick around longer than he had planned?

KOPPEL: You know, we're long in the business here at the State Department, covering the State Department, of reading tea leaves. And Secretary Powell has been very cagey as to what his future intentions are.

Before the election, there was a mantra that he repeated day in, day out, whenever he was asked about this. He would say, "I serve at the pleasure of the president." Now he is saying not just that he serves at the pleasure of the president, but that it's something that he and President Bush are going to talk about and decide sort of what the best course would be.

So it is unclear. I've spoken to some of his aides, and what they've said is they think the secretary would like to stay around a little bit longer, a matter of months, maybe a little bit longer, to try to see through some of the policies that are in flux, whether it be North Korea, Iran and perhaps even post-Yasser Arafat. So I think that the indications, the signals we're getting is that the secretary would like to stay a little longer than perhaps he originally thought.

KAGAN: Well, and as we wait for President Bush to speak at Arlington National Cemetery, lots of introductions on this Veterans Day, what was it from this White House, from this administration that they really found so offensive and so difficult and why they viewed Yasser Arafat as an obstacle to peace in the Middle East?

KOPPEL: That's a good question. I think looking back at the last four years, when the Al Aqsa Palestinian intifada began, that was September of 2000, just the waning months of President Clinton administration. They believed, the U.S. believed, both the Clinton administration and when the Bush administration took office, that Yasser Arafat had the clout and credibility with the Palestinian militants to say, OK, guys, enough is enough, stop the attacks against Israel.

He didn't exercise that clout. As time went on, and the attacks increased against Israelis, the Bush administration's patience with Yasser Arafat ran out, and eventually they saw him as the obstacle to peace. They felt that if they could only remove him that there would then be at least the opportunity for some kind of stop to the -- to the attacks.

The difficulty -- and here's the rub, Daryn, is that while Yasser Arafat was believed to be the man who help the cards with the Palestinian militants, now that he's gone, can those who remain behind, his contemporaries, Ahmed Qorei, the current prime minister, Mahmoud Abbas, who was the first Palestinian prime minister, can they command the respect of the militants? The jury is out, but not a lot of people are hopeful on that front. They feel it's going to be up to the U.S. and Israel to offer some kind of incentives, some kind of give these individuals the kind of ammunition, so to speak, and I'm talking figuratively here, that they can use to show the Palestinian people that they can deliver what Yasser Arafat could not.

KAGAN: Andrea Koppel at the State Department. Andrea, thank you.

SANCHEZ: Well, let's do this, because we know right now that the ceremony is still taking place. We have been given notes from the White House that seemed to indicate this thing; the president was going to speak at the 11:10. I think what they were trying to say with these notes that they sent us is that the ceremony would begin at 11:10, because the president has not yet...

KAGAN: And that it did. For the record, it did.

SANCHEZ: It did, promptly at 11:10.

KAGAN: They just didn't talk about all the stuff that was going to happen in between. There you have the picture. Obviously the process is still taking place. We're going to monitor it. We're going to take a quick break. We'll come back. And by then, we assume, the president will begin to speak.

(COMMERCIAL BREAK)

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Aired November 11, 2004 - 11:01   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: President Bush carrying out the ceremony at the Tomb of the Unknowns, a tomb holding the remains of American soldiers from World Wars I and II, also the Korean conflict. And there was from the Vietnam War as well, but those remains were later identified to belonging to Air Force First Lieutenant Michael Blassie. And those remains were returned to his family.
We're going to hear from President Bush probably in about eight minutes. He'll be speaking, and you will hear those Veterans Day comments right here on CNN.

RICK SANCHEZ, CNN ANCHOR: Meanwhile, what we want to do is try and catch you up. It's been a very busy day bringing you live events. But there is a lot happening, so let's do that now. And here is a look at what's happening right "Now in the News."

Palestinian leader Yasser Arafat is being hailed as a symbol of the quest for a Palestinian homeland. But also assailed as a sponsor of violence and terrorism. Arafat's body is being flown to Cairo, where his funeral will be held tomorrow, a military funeral. We will have extensive coverage of Mr. Arafat's life and death throughout this coverage.

Also, as U.S. and Iraqi troops keep up their offensive in Falluja, we're learning more details about a disturbing discovery there. A Marine official says that troops found a man beaten and shackled at a site believed to be a hostage slaughterhouse, a place where people may have been beheaded. The military is sorting through CDs and tapes and documents found, and some of the blood-stained area as well.

Now, a suicide car bombing killed at least 19 people and wounded 15 others in Baghdad today. The bomb went off on a busy street in the city's commercial district. More than two dozen cars were destroyed and burned, and 20 shops and buildings were damaged by this explosion.

President Bush leads the nation in honoring U.S. veterans, as you've been watching here live and you're seeing now as well in this live picture that we're taking for you. He has been taking part in a wreath-laying ceremony this hour at Arlington National Cemetery. We' re going to have live coverage of the president's remarks at the Veterans Day observance, and that's coming up, oh, in about six minutes or so.

And as we catch you up, it is 11:03 on the East Coast, 8:03 on the West. From the CNN Center in Atlanta, I'm Rick Sanchez. KAGAN: And good morning, once again. I'm Daryn Kagan. Our busy day continues.

We're going to focus extensively this hour on the death of Yasser Arafat. Just so you know, though, once President Bush begins to speak, in about five minutes, from Arlington National Cemetery, we'll be showing those comments to you live here on CNN.

But now to Yasser Arafat, who was an enduring symbol of Palestinian nationalism, a man who was in the same breath viewed as a brutal terrorist and a Nobel Peace Prize recipient. Just minutes ago in Paris, we were watching these pictures live here on CNN. It was in Paris last night where Yasser Arafat died last night.

A ceremony as his body is placed aboard a plane for a flight to Cairo. A military funeral is planned for there tomorrow. And then in Ramallah, Palestinians filling the streets of the West Bank city with raw grief for their longtime leader. Arafat will ultimately be buried at his Ramallah headquarters tomorrow, not in Jerusalem, as he had wished.

And new leaders are sworn in for the PLO Palestinian Authority. We're going to tell you who these men are this hour, and whether they might be the generation of leaders that the Bush administration hope to see.

SANCHEZ: First to Paris, though. That's where Arafat lingered near death for the better part of 13 days at a French military hospital. CNN correspondent Jim Bittermann is beginning our coverage. He's at the Paris airport, where he's been covering this event and brings us now the latest from there.

Hi, Jim.

JIM BITTERMANN, CNN CORRESPONDENT: Hi, Rick.

The ceremony is over. It was a very brief ceremony featuring a Republican Guard band, Honor Guard. They marched out President Arafat's coffin from a helicopter that had come here from the hospital -- it's not far away. Marched the coffin around before the crowd of dignitaries, about -- I'd say about 150 dignitaries here, including Arab world diplomats, the French prime minister, foreign minister, the speaker of the national assembly, a number of the leading figures from the Islamic world in France, all of whom had reason to know Arafat along the line and wanted to come out here and honor his -- say good- bye to what essentially was an old friend for a lot of them.

Now, what we're waiting for right now is there is a crowd of dignitaries which includes Suha Arafat, Arafat's wife, as well as his nephew, Nabil Sha'ath, Leila Shahid, and a number of leading Palestinian figures who are in the VIP lounge. I think you can see it behind me. And they are going to assemble in a couple of minutes here and get on these buses and be taken over to the aircraft.

They're going to be flying back to -- back to Cairo, back to the Middle East, with the same plane that will be flying Arafat's coffin back there, a military version of the Airbus 320, for about a four- and-a-half hour flight or so to Cairo -- Rick, Daryn.

SANCHEZ: Jim Bittermann following that story for us. We thank you, Jim. We'll be getting back to you as the story develops.

Meanwhile, President Bush calling the death of Yasser Arafat a significant moment in Palestinian history and expressing new hope for Middle East peace. Let's talk to CNN's Dana Bash. She's at the White House this morning, following this for us.

Well, let's hold off on that, yes.

KAGAN: Yes. We're going to get to Dana Bash in just a minute just because -- and we only are changing the order here because we have an opportunity to talk with our Jane Arraf. She's been embedded with the U.S. Army in Falluja as the incursion takes place on that Iraqi city. Jane joining us by the phone right now.

Jane, can you hear us? Jane Arraf in Falluja.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Daryn, I can hear you now. I'm sorry. It's awfully noisy.

We're in a moving armored personnel carrier. The fighting here is continuing. This is an expanded search-and-attack operation. We're with the Army doing complementary operations with the Marines. And the night sky here, Daryn, has been lit by almost constant explosions and the sound of gunfire as they continue to clear these streets.

They're finding insurgents still in allies, insurgents still in buildings. And they're launching artillery airstrikes and engaging them with machineguns. An indication that, although there still are pockets of insurgents, there are very active pockets -- Daryn.

KAGAN: And Jane, the sounds that we're hearing around you, it sounds more urgent, it sounds louder than when we've talked to in the last few days. Can you compare the atmosphere and the intensity of the fighting, please?

ARRAF: Well, we're actually in the middle of this operation. So what you're hearing around you at this moment are the sounds of armored personnel carriers and some tanks moving around as they go through this industrial sector.

They've been knocking down walls, actually clearing this again. They were in this sector before, but they keep coming under fire. And they're doing expanded operations, moving down through the city.

In just a little while, if we're still talking, Daryn, there's going to be a huge explosions as they set off a line charge, detonating improvising explosive devices. This place is absolutely littered with homemade bombs.

They're finding all sorts of things. Earlier, I spoke to a Marine general who said that indeed they had found a house where they suspected hostages had been slaughtered. He said he saw -- he saw blood on the floor, blood on the courtyard. (UNINTELLIGIBLE) hostages -- Daryn.

KAGAN: All right. Jane Arraf, embedded with the U.S. military in Falluja. If we hear explosions as we're talking to you, we know that is planned, controlled explosions as they move on through the city. Thank you and be safe as you cover the story, please -- Rick.

SANCHEZ: Boy, that does sound loud, doesn't it?

Let's go now to Dana Bash. She's following the president today, and what really becomes even more important for the president in terms of what Tony Blair has long wanted to talk about, and that is the Middle East peace process. And it just so happens that Mr. Blair will be arriving at the White House tonight.

Dana, over to you.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Hi, Rick.

Well, that's right, Tony Blair is going to come to the White House, the first foreign leader to meet with Mr. Bush since he won reelection for his second term. And as you mentioned, the two men will likely talk about the Mideast and how Yasser Arafat's death will change the U.S. perspective and the U.S. engagement on the Mideast peace process.

As you mentioned, Tony Blair is somebody who has long wanted Mr. Bush to be engaged in the process -- he, along with other European leaders. And earlier you read a part of Mr. Bush's statement that the White House released last night. It was quite matter of fact.

As you mentioned, he said that the death of Yasser Arafat is a significant moment in Palestinian history, and then very quickly in this statement moved on to talk about the fulfillment of Palestinians' aspirations for an independent democratic Palestine looking forward. And the White House, senior Bush aides, the president himself have made it abundantly clear they are looking at this particular event as something that, of course, the Palestinian people are going to mourn with the death of Yasser Arafat.

But as a hope that perhaps new leadership, even if it is the former prime minister, Mahmoud Abbas, somebody who Mr. Bush has worked with and has talked about in glowing terms, or Ahmed Qorei, who is the current prime minister, that those two can provide an opening to a new Mideast peace process and to -- and a new chance for the Palestinian people. This is something that the White House has made clear that they have had really no desire to work with Yasser Arafat, that much to the chagrin of some European leaders, even those in France that said that President Bush should have dealt with Yasser Arafat.

But at this point, the MO here at the White House is to look towards the Palestinian peace process and move on.

SANCHEZ: Dana, I'm looking over at my monitor here and I'm seeing that the president may shortly be coming up. I know he's going to be making some remarks. So stay with us for a little while here.

Give us a preview, if you will, of the president's remarks that he's going to be making on this -- on this important day.

BASH: Rick, you know, it's always quite a poignant moment for any president to speak at the Tomb of the -- to lay a wreath at the Tomb of the Unknowns and then, of course, to speak at Arlington National Cemetery, commemorating Veterans Day. But it's been especially poignant for this president who has never given this kind of speech without having troops in battle and troops at war, first, of course, in Afghanistan, and now in Iraq.

And the president is going to give a similar speech, we are told, to those in the past, talking about the sacrifices and service of veterans in past wars, since World War I, World War II, but also, of course, the sacrifice of the people who are on the ground and fighting as we speak, and veterans who have come back from the wars that he's presided over. Of course Iraq is a war that has lost 1,157 U.S. troops. And this speech, of course, will come as troops are engaged in a much-anticipated battle of Falluja to try to reclaim that city, hopefully to get things moving towards elections in Iraq.

That is something that is very much on the president's mind, something he talked about yesterday. And, of course, this speech, talking to veterans about veterans, comes after the president had a very long campaign talking about some of the controversy in the war in Iraq, particularly, as Democrats said, that perhaps Mr. Bush did not send enough troops to battle in Iraq, did not plan well enough for the war in Iraq.

Mr. Bush just as early as recently as yesterday talked about the fact that he does believe that at this point there are enough troops on the ground. But he's willing to listen to the commanders on the ground to see whether or not they need more in the future -- Rick.

SANCHEZ: You know, it's interesting, Dana, as we hear the colors here just before the president speaks, across the Atlantic they're saying to Tony Blair, you're going over to the United States to get your orders from the president. Will there be an assertion of Tony Blair during this trip? Do you expect that Tony Blair will try to assert himself more perhaps than he has in the past because of the criticism that he's been getting overseas?

BASH: Well, you know, that's going to be something that's interesting to watch. Tony Blair has had some criticism overseas really since -- since day one, since before the Iraq war even began.

He really was at odds with many of his European leaders, with many of the people in his own country by siding with President Bush. So that criticism is nothing new.

Now that there is sort of a new phase, that the president has gained a second term, that they're looking at, they hope, elections in Iraq and a new kind of Iraq, it will be interesting to see if Tony Blair changes his tune at all. But certainly Mr. Bush talks to Tony Blair quite frequently, more than any other world leader, and the two are quite close. So it will be interesting to see how they deal with what's going on in the future publicly. SANCHEZ: And while we have you there, and we're waiting for the president to speak, anything new to report as far as the president's cabinet positions are concerned? We know that we're now looking at the possibility of a new Hispanic member of his cabinet. What can you tell us about that?

BASH: At this point we think we don't -- we won't likely have new announcements today. But certainly we are anticipating a lot of -- a lot of announcements in the near future.

Of course, most immediately, you mentioned we do know who is going to fill -- at least who was nominated to fill the attorney general spot. We don't yet know who will be nominated to fill the secretary of commerce, that particular spot.

Secretary Evans of course is leaving. He announced that earlier this week.

There are a lot of people that have been sort of floated to be in the running. Among them, perhaps, the president's chief fund-raiser during his campaign, Mercer Reynolds. Even as somebody who ran his campaign, Marc Racicot, the former governor of Montana.

But those are sort of names that are out there. Unclear exactly when or who will be nominated for that. Of course we are still waiting to hear the very big announcements to see whether or not there will be imminent changes in the president's national security team, of course from the secretary of state, to the president's own very close advisers, National Security Adviser Condoleezza Rice.

HEMMER: And hopefully we'll be hearing from Alberto Gonzales, the president's legal counsel there, if he indeed is confirmed for this position, and all the brouhaha, I imagine, which will come between now and then. Dana Bash, thanks so much for that report. We will be getting back to you as we prepare to hear the comments of the president there speaking at the Veterans Day ceremony.

KAGAN: We're going to keep on this live picture here waiting for President Bush's comments. And as you were mentioning, the possibility of -- as you were talking with Dana Bash, the possibilities of the changes in the cabinet.

He is there with Secretary of State Colin Powell. Before the election, a lot of speculation that Colin Powell wanted to leave this administration. And yet now some thinking, with others leaving, and also the death of Yasser Arafat, that this might not be the time, that there might be more work for Secretary Powell to do.

SANCHEZ: Interesting that Colin Powell is not going to be attending any of Yasser Arafat's memorials. As a matter of fact, he's sending a deputy instead.

What it says about the United States and its relationship or lack thereof with Yasser Arafat? Volumes. But will this, with Yasser Arafat's absence now, because of his death, lead to a new era in United States engagement in this process? Well, that certainly seems to be what a lot of people are hoping.

KAGAN: Yes. And yet consistent. This Bush White House has been consistent with its status and its feelings on Yasser Arafat.

He was never welcome at the Bush White House. President Bush did send Secretary of State Colin Powell a few times to go meet with Yasser Arafat. But as those relations deteriorated, even that came to an end.

SANCHEZ: Let's do this, let's take a quick break. As soon as we come back, we'll hopefully be able to have the president's comments. Let's get into it.

We'll be right back in just a moment here on CNN LIVE TODAY.

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KAGAN: All right. We are monitoring two separate live events, two very important event taking place in different parts of the world.

First, let's show you the live picture. This is Arlington National Cemetery. President Bush you see there, of course, He any minute is about to make remarks. And you will hear those comments on this Veterans Day live here on CNN.

SANCHEZ: And the other event we're covering has been coming, as you say, Daryn, from the other part of the world. This is in Paris. And it's soon to be in Cairo, Egypt. That's where that plane is destined for with the body of Yasser Arafat.

Now, we were told by our producers just moments ago that you might actually be able to see -- or we have been able to see when we look closely, the outline of Suha Arafat, Mr. Arafat's wife, who's on the plane. She was quite prominent today in this ceremony taking place here at the air base there in Paris. It's five minutes by helicopter from the hospital where Mr. Arafat died last night.

KAGAN: And it's interesting to see her today, because we have not seen her in recent days. Earlier in the week she was very visible, and probably more important, very vocal. There you can see a picture of her through the window of the airplane.

But a very vocal -- right before that delegation arrived from Ramallah, the Palestinian leadership delegation, she did not want them to come to Paris. And by French law she had complete control and access over the health care of her husband and who was able to see him. And apparently a power struggle in terms of what was to happen to him.

SANCHEZ: And now the funeral, which will be taking place, interestingly enough, in Cairo, Egypt.

There's some mystery regarding the background of Yasser Arafat. It is -- according to most historians, he was born in Egypt and then went to meet members of his family in Jerusalem. Members of his family will tell you that he was actually born in Jerusalem and that has never actually been straightened out.

But nonetheless, he certainly played a very prominent part in the Egyptian affairs in the past, which is also a place where many of the Arab ceremonies have been held as well. So it seems fitting that Mr. Arafat would have that ceremony there.

Why not have it in Ramallah or in some part of the West Bank, or perhaps in Gaza? Because Arab leaders are saying that they feared that the Israelis wouldn't let many of them through. So they chose to go to Egypt instead.

KAGAN: Well, the other issue here, it was ultimately his dream, his wish to be buried in Jerusalem. The Israelis saying that wasn't going to happen. So he will ultimately be buried in Ramallah, and yet the Palestinian current leadership saying, well, that's temporarily. They believe that one day they will have part of east Jerusalem and that they will remove Yasser Arafat's remains and the shrine to him into that part of the city.

SANCHEZ: Yes, Saeb Erekat is determined. He says one day east Jerusalem will be again.

And you have to remember, you know, we talked about this with the professor not long ago when he was joining us. And we talked about that moment where Ehud Barak and Yasser Arafat and Bill Clinton came so close to coming up with a deal that would bring the two-state solution that we've all often talked about. And most people will tell you the sticking point was east Jerusalem.

There are 176,000 Israeli settlers still living there, at last we checked. And for the Israelis, it's not something they're willing to give up. For the Palestinians, it's very, very important. So east Jerusalem is well entrenched, very much at the center of this entire argument.

KAGAN: This jetliner about to take off. It will head to Cairo, where there will be a military funeral, and then ultimately on to Ramallah.

We're going to take a break. We are standing by for President Bush's comments from Arlington National Cemetery.

We're back after this.

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KAGAN: An assistant secretary of state will represent the U.S. tomorrow at the funeral of Yasser Arafat. The Bush administration says the Palestinian leader's death may breathe new life into the Mideast peace process. For more on the U.S. reaction to the death of Yasser Arafat, let's bring in our State Department correspond, Andrea Koppel.

Andrea, good morning again.

ANDREA KOPPEL, CNN STATE DEPT. CORRESPONDENT: Good morning, Daryn.

You know, the reason the Bush administration is hedging its bets right now is because it has no idea who the next Palestinian leadership will be. And we're not talking about a single individual. Mostly likely it will be a collective leadership, the way they had in China when Mao Tse-Tung and Dung Shao Ping died.

There was no individual who had the charisma, the clout, the credibility with the Chinese people in that case. And in this case, with the Palestinian people to be able to wear all the hats that Yasser Arafat did. And the problem is, Daryn, that the next Palestinian leadership could be worse than Yasser Arafat, which is why the Bush administration is not ready to give carte blanche, saying they'll deal with whoever the Palestinians choose.

KAGAN: Andrea, let's talk about who runs the place where you are reporting from, the State Department. Colin Powell, a lot of speculation before the election that he would be among the first cabinet members who would want to move on. But now that others are moving on, and now that the death of Yasser Arafat has taken place, is there a sense that there might be work and more reason for Colin Powell to stick around longer than he had planned?

KOPPEL: You know, we're long in the business here at the State Department, covering the State Department, of reading tea leaves. And Secretary Powell has been very cagey as to what his future intentions are.

Before the election, there was a mantra that he repeated day in, day out, whenever he was asked about this. He would say, "I serve at the pleasure of the president." Now he is saying not just that he serves at the pleasure of the president, but that it's something that he and President Bush are going to talk about and decide sort of what the best course would be.

So it is unclear. I've spoken to some of his aides, and what they've said is they think the secretary would like to stay around a little bit longer, a matter of months, maybe a little bit longer, to try to see through some of the policies that are in flux, whether it be North Korea, Iran and perhaps even post-Yasser Arafat. So I think that the indications, the signals we're getting is that the secretary would like to stay a little longer than perhaps he originally thought.

KAGAN: Well, and as we wait for President Bush to speak at Arlington National Cemetery, lots of introductions on this Veterans Day, what was it from this White House, from this administration that they really found so offensive and so difficult and why they viewed Yasser Arafat as an obstacle to peace in the Middle East?

KOPPEL: That's a good question. I think looking back at the last four years, when the Al Aqsa Palestinian intifada began, that was September of 2000, just the waning months of President Clinton administration. They believed, the U.S. believed, both the Clinton administration and when the Bush administration took office, that Yasser Arafat had the clout and credibility with the Palestinian militants to say, OK, guys, enough is enough, stop the attacks against Israel.

He didn't exercise that clout. As time went on, and the attacks increased against Israelis, the Bush administration's patience with Yasser Arafat ran out, and eventually they saw him as the obstacle to peace. They felt that if they could only remove him that there would then be at least the opportunity for some kind of stop to the -- to the attacks.

The difficulty -- and here's the rub, Daryn, is that while Yasser Arafat was believed to be the man who help the cards with the Palestinian militants, now that he's gone, can those who remain behind, his contemporaries, Ahmed Qorei, the current prime minister, Mahmoud Abbas, who was the first Palestinian prime minister, can they command the respect of the militants? The jury is out, but not a lot of people are hopeful on that front. They feel it's going to be up to the U.S. and Israel to offer some kind of incentives, some kind of give these individuals the kind of ammunition, so to speak, and I'm talking figuratively here, that they can use to show the Palestinian people that they can deliver what Yasser Arafat could not.

KAGAN: Andrea Koppel at the State Department. Andrea, thank you.

SANCHEZ: Well, let's do this, because we know right now that the ceremony is still taking place. We have been given notes from the White House that seemed to indicate this thing; the president was going to speak at the 11:10. I think what they were trying to say with these notes that they sent us is that the ceremony would begin at 11:10, because the president has not yet...

KAGAN: And that it did. For the record, it did.

SANCHEZ: It did, promptly at 11:10.

KAGAN: They just didn't talk about all the stuff that was going to happen in between. There you have the picture. Obviously the process is still taking place. We're going to monitor it. We're going to take a quick break. We'll come back. And by then, we assume, the president will begin to speak.

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