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Iran Reportedly Enriching Uranium; Russia Developing Nuclear Weapons Systems; Bush Nominates Margaret Spelling for Education Secretary; Tornado Touches Down in Texas
Aired November 17, 2004 - 11:00 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.
RICK SANCHEZ, CO-HOST: Back in the United States, attention Kmart shoppers. You may be in for more than just a blue light special. Kmart is acquiring Sears, Roebuck & Company as part of an $11 billion merger. Industry insiders say it could be a win-win situation for both the companies and consumers. We're going to have more on the merger. That's coming up in about 30 minutes.
And in Washington this hour, President Bush is expected to nominate Margaret Spellings for education secretary. Spellings is Mr. Bush's domestic policy adviser. She would replace outgoing Education Secretary Rod Paige, who announced Monday that he intended to leave, as well. We will bring you the president's announcement live when it happens.
Eight a.m. on the West Coast, 11 on the East Coast. From the CNN Center in Atlanta, I'm Rick Sanchez.
DARYN KAGAN, CO-HOST: And good morning once again. I'm Daryn Kagan.
The world woke up to new nuclear worries this morning. And that's where we're going to start this hour.
New claims that Iran may be pulling a fast one on nuclear inspectors, while Russia is moving ahead with plans to counter a U.S. space shield. We've got these stories covered with our international correspondent, Matthew Chance in London. Moscow bureau chief Jill Dougherty is standing by, as well.
Matthew, we're going to start with you.
MATTHEW CHANCE, CNN CORRESPONDENT: Daryn, thank you very much.
Well, new allegations surfacing about Iran's nuclear ambitions, which threaten to undermine its recent commitments that it's made to the international community about not producing nuclear weapons.
An Iranian dissident opposition group says that it has information and photographs detailing a site in the Iranian capital, Tehran, where it says that it has located an area where there is centrifuge operations taking place, used of course, to enrich uranium for weapons production.
The group says the site, which is about 60 acres in size -- so quite a considerably big size -- is in the middle of Tehran, as they say. Also has chemical and biological facilities there, and has not been declared to any agency, including the IAEA, the U.N.'s nuclear watchdog.
Well, this is, obviously, if it's found to be true, that is, something that could have far-reaching consequences for Iran, for the international community.
The government of Iran has come out and stresses that this is not the case, calling it a lie, saying this kind of information is put out there by its opponents and by its enemies in the lead up to important meetings. And there is a very important meeting that we're expecting in the next week at the U.N.'s nuclear watchdog headquarters in Vienna, which will decide whether or not to refer Iran to the U.N. Security Council for the possibility of sanctions because of its nuclear activity.
The IAEA itself says it's not ruling out anything at this stage. It intends to launch its own investigation, send inspectors to the place in Tehran where the site is supposed to be located. And to do that first, before it jumps to any conclusions -- Daryn.
KAGAN: Matthew Chance in London, thank you.
Now shades of the Cold War in Russia. Our Jill Dougherty joins us for that story -- Jill.
JILL DOUGHERTY, CNN CORRESPONDENT: Well, Daryn, President Putin made this announcement as he was meeting with the top brass of the Russian military, saying that Russia is developing a new type of nuclear missile that no other country has.
(BEGIN VIDEO CLIP)
VLADIMIR PUTIN, RUSSIAN PRESIDENT (through translator): We will continue our efforts to build our armed forces as a whole and their nuclear component. We are not only conducting research and successfully testing new nuclear missile systems. I'm sure that they will be put into service within the next few years. And what's more, there will be developments. There will be systems of the kind that other nuclear powers do not have and will not have in the near future.
(END VIDEO CLIP)
DOUGHERTY: So President Putin said -- he did not say specifically what kind of weapon this was. But as we talk with some defense analysts, they tell us that presumably he was talking about a mobile version of the TOPAL-M (ph). That's a missile that the Russians already have deployed in silos. It actually has a range of 6,000 miles, and it can maneuver in order to avoid detection.
President Putin essentially said that terrorism still is one of the major threats to Russia and that Russia, in order to defend itself, has to keep up on the nuclear side.
Now, one question: is this the beginning of a new arms race? No. If you talk with experts, they say that is not the aim. Essentially, Mr. Putin has said strong things like this before, when he gets with the top brass, and essentially it's a bit of P.R. for Russia, to say it still is a nuclear power, and it still intends to remain one -- Daryn.
KAGAN: All right. Jill Dougherty with the latest from Moscow. Thank you -- Rick.
SANCHEZ: Now on to the situation in Iraq. Day two of a military operation against Iraqi insurgents in the northern city of Mosul.
Attackers fired mortar rounds on a police station there, trying to seize it, setting police cars and the building itself ablaze. Officials are trying to assess the damage in that. No one was inside at the time. Despite the attack, military officials say the situation in Mosul is now largely under control.
(BEGIN VIDEO CLIP)
BRIG. GEN. CARTER HAM, U.S. ARMY: The city is under the control of the Iraqi provisional government and Iraqi security forces, though as you've stated, a few days ago, on the 11th, we did have some trouble, and a number of police stations were under the brief control by insurgent forces. And that created some significant challenges for us. But by that evening, Iraqi security forces and us were present throughout the city.
(END VIDEO CLIP)
SANCHEZ: That's once again the very latest there from Mosul.
A new situation for Marines and U.S. troops. Now, it's believed that insurgents are focusing on Mosul to divert troops from their offensive that's been taking place in Falluja. U.S. military officials say troops secured Falluja, but they're still working to root out the final pockets of insurgent resistance there.
Congressional investigators say that Saddam Hussein diverted money from the U.N. oil-for-food program to pay families of Palestinian suicide bombers. Investigators uncovered the money trail during a probe of the oil-for-food program. The program was intended to provide humanitarian relief for Iraqis, but investigators at a Senate hearing said that the former Iraqi leader made billions in illegal revenue from the oil sales.
KAGAN: Republicans are behind closed doors this morning, circling the wagons around the majority leader, Tom DeLay. Congressional correspondent Joe Johns is on Capitol Hill. We'll have more on him in just a moment.
First, though, we want to go to the White House, and that is where we expect the president to appear at any moment. He is holding this event to nominate Margaret Spellings as his next education secretary.
Of course, there's been a lot of news over the last week about cabinet members that have chosen to move on. Spellings will replace Rod Paige.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you all. Please be seated.
KAGAN: Let's listen in.
BUSH: Good morning. I'm proud to announce my nomination of Margaret Spellings to be the secretary of education. I've known Margaret Spellings for more than a decade. I have relied on her intellect and judgment throughout my career in public service.
As governor of Texas, I called on her to serve the children of our state as my chief education adviser, a job she carried out with conviction and great results.
When I was elected president, I asked her to serve as assistant to the president for domestic policy. I've benefited from her knowledge and experience on many issues, from health care to immigration to job training.
I'm now calling on this energetic reformer to serve the children of America by continuing our vital work of improving our nation's public schools.
Margaret Spellings has a special passion for this cause.
She believes that every child can learn and that every school can succeed. And she knows the stakes are too high to tolerate failure.
She believes in high standards and providing the resources necessary to meet those standards.
In Margaret Spellings, America's children, teachers and parents will have a principled, determined ally in my Cabinet.
She has my complete trust. And she will be an outstanding secretary of education.
With the Senate's approval, Margaret Spellings will continue the work of a fine educator and leader, Secretary Rod Paige.
As secretary of education, this humble and decent man inspired his department and implemented the most significant federal education reform in a generation.
Today, thanks to the No Child Left Behind Act, students of every background are making hopeful progress in reading and math.
The nation's schools are stronger because of Rod Paige's leadership.
I'm grateful for his friendship.
I'm grateful for his years of service.
We've made great progress in our schools and there is more work to do. Margaret Spellings and I are determined to extend the high standards and accountability measures of the No Child Left Behind Act to all of America's public high schools.
We must ensure that a high school diploma is a sign of real achievement so that our young people have the tools to go to college and to fill the jobs of the 21st century. In all our reforms, we will continue to stand behind our nation's teachers who work so hard for our children.
The issue of education is close to my heart and on this vital issue there's no one I trust more than Margaret Spellings.
Two decades ago, as a young aide in the Texas state legislature, Margaret dedicated herself to strengthening public schools. She went on to help lead the Texas Association of School Boards, to advise two governors on school reform and to serve four years as my top domestic policy adviser right here in the White House.
And now her talent and idealism have brought her to the highest education office in the land.
Through it all, she has kept her good humor and her perspective on life. She is a devoted loving mother to Mary and Grace. And Laura and I are proud to count her and Robert as good friends.
I urge the Senate to promptly confirm Margaret Spellings as America's eighth secretary of education and I look forward to having her in my Cabinet.
Congratulations.
(APPLAUSE)
MARGARET SPELLINGS, EDUCATION SECRETARY NOMINEE: Thank you, Mr. President.
I am joined today, as you said, by my husband Robert and two of our four children, my daughters, Mary and Grace La Montagne, who get to miss school to be here.
On behalf of myself and my family, thank you, Mr. President, for this opportunity, not only to serve you and our country, but the children of America. I am humbled and honored by your confidence.
More than 10 years ago, you gave me the opportunity to work with you on improving Texas schools. You said then that the government should do a few things and do them well, and that one of those few things is educating all children.
I share your passion for education and your commitment to seeing that each and every child has the skills and qualities necessary to realize the American dream.
Our schools must keep their promise to all our children, and I pledge to do all I can to ensure that no child is left behind. It has been a privilege to serve as your domestic policy adviser for these past four years. I have mixed feelings about leaving this White House and will miss all of my wonderful friends and colleagues here: our great chief of staff, my wonderful Domestic Policy Council staff and, of course, all the great Texans who have been at your side for more than a decade.
One of those great Texans is, of course, Secretary Rod Paige, who distinguished himself as an educator and has served admirably as your secretary of education. He has laid the foundation for leaving no child behind, and I pledge to honor his lifelong commitment to children by continuing the good work he started.
To you, Mr. President, and to Mrs. Bush, who shares your commitment to education, thank you.
I am a product of our public schools. I believe in America's schools, what they mean to each child, to each future president or future domestic policy adviser and to the strength of our great country.
If confirmed by the Senate, I commit to work alongside America's educators and my new colleagues at the Department of Education to make our schools the finest in the world.
Mr. President, thank you for this opportunity and for your continued trust and confidence in me.
BUSH: Good job.
SPELLINGS: Thank you.
BUSH: Leave that there. Let's go.
KAGAN: An emotional Margaret Spellings, accepting President Bush's nomination to be the next secretary of education. These two have known each other a long time. They go back to Texas days, Margaret Spellings, working with the president six years as he was governor.
She's long been responsible for education policy, other domestic policy, as well. And she's been working in the White House in the first term.
Mother of four. Two of her kids skipped school. The new education secretary, to come to the White House. But you've got to figure, they learned a few things today.
Our Suzanne -- Suzanne Malveaux standing by, watching this as well as the other activities at the White House today.
Suzanne, hello.
SUZANNE MALVEAUX, CNN CORRESPONDENT: Hello, Daryn.
As you know, of course, this really follows the president's pattern here to pick a trusted adviser, somebody who he's already had experience working with at the White House, as well as back in his Texas days. The last four years, advising him on issues of health, as well as labor and education. Back in Texas, of course, being largely responsible for education and reform.
There's already been some initial reaction to the possibility of her actually taking that position. It was yesterday, the National Education Association. That is the largest teacher's association union in the country, issued a statement saying that they welcome Spellings, perhaps that this will change the tone between the secretary of education, that department, and its own organization.
This, after some controversy over Rod Paige's comments that he made, calling them a terrorist organization for not following through on the No Child Left Behind legislation, a comment that Paige later apologized for.
But it is clear that they feel this is someone that they can work with. Perhaps she is more moderate than Paige. But she also, too, was one of those critical players, a critical architect, in that legislation that won bipartisan support.
The president obviously feeling very comfortable with her credibility, as well as their very close relationship -- Daryn.
KAGAN: Suzanne Malveaux, a busy day at the White House, thank you.
SANCHEZ: A busy day weather-wise as well. We're checking in with Jacqui Jeras just a little while ago. And she told us that there were some warnings about tornados in the Houston area. And now, I think we're starting to get some information that there may have been a touchdown. Is that correct?
JACQUI JERAS, CNN METEOROLOGIST: Yes, we now have some ground truth now. La Port Emergency Management reporting some damage at Spencer and also Driftwood as the storms passed through. But we don't have any reports on how extensive that damage is.
Also, so we are tracking a confirmed tornado. And they've just extended the tornado warning at this time. So Chambers and Harris, you're still in this warning. And now Liberty County has been added, as well.
This is the area of concern. This is our Viper Doppler radar. The best thing I can tell you right now is that it's indicating that shear as strongly as it was before. But we're still seeing a pretty good signature here on Doppler radar. So this is still a very significant threat. A tornado may be on the ground at this time. It's tracking up to the north at 30 miles per hour.
And right here, you can see I-10. So this is not a time to venture out go to work, go out for lunch or anything. You want to stay indoors, away from doors and windows. You want to be taking cover at this time, as a tornado has been spotted and was confirmed on the ground just about 15, 20 minutes ago at this time. Want to zoom it out and show you a perspective. This does not include downtown Houston. You're OK if you're in downtown Houston. This is on the east side of town.
A couple cities I want to mention. We did talk about Bay Town. It's probably just to your north right now in Bay Town. Highlands, Barrett, and also Mt. Bellview are included. You are in the line of fire at this time.
So kind of a dangerous situation is starting to shape up right now. Just issued a brand-new tornado watch, which includes all of the Houston area, extending down to over towards Galveston, and just kind of barely nipping into the Beaumont area.
We'll take you out to a wider view now. Want to hop out of the screen here and show you our composite radar. There's the whole state of Texas. And there's another line I'm a little bit concerned about. Right here. It's just to the east of I-35.
And you can see a strong line of convection really starting to fire up right here. So I am concerned that we may be seeing some more rotation as we head into the afternoon hours for today.
Now, on top of all of that, the rainfall that's going to be coming down, very, very heavy. We could see rates of one to two inches per hour at times. And the ground here is already very, very saturated. So we will have a very significant threat of flooding throughout the day today, as well.
We'll get to the rest of the nation's forecast coming up before the end of the hour -- Daryn.
SANCHEZ: Jacqui, one more time, before we let you go. For those folks listening, who may not have heard, or those who are listening on the radio and didn't see the picture, tell us one more time the area where people would probably be well suited to stay indoors.
JERAS: Right. It's right along the I-10 corridor at this time. Just outside of the loop into the Houston area. Around Bay Town, towards the highlands, also into the Channelview area. It includes Liberty County, Chambers County and Harris counties in southern Texas.
SANCHEZ: Just east of the Houston area then.
JERAS: Yes.
SANCHEZ: All right. Thanks a lot, Jacqui.
KAGAN: Sorrow and outrage from around the world in the wake of the brutal murder of a beloved aid worker in Iraq. Details...
SANCHEZ: Coming right up.
KAGAN: Just ahead.
(COMMERCIAL BREAK) SANCHEZ: Republicans are behind closed doors this morning. They're circling the wagons around Majority Leader Tom DeLay. How are they doing it? Well, congressional correspondent Joe Johns is on Capitol Hill. He's following this story for us.
What are they doing, Joe?
JOE JOHNS, CNN CORRESPONDENT: Well, House Majority Leader Tom DeLay in the spotlight on this Wednesday. We saw him this morning leaving the White House here on Capitol Hill.
Some of his House colleagues have proposed changing the rule that requires members of the House leadership to step down, at least temporarily, if they are indicted on state or federal charges.
DeLay's name has come up in a Texas state investigation. In fact, three of his associates have already been indicted in that investigation.
Now, so far there has been no vote on this planned rule change, or this discussed rule change. We do know this morning members of the House Republican conference were meeting behind closed doors. There was a possibility that they could bring it up. But it's not clear that it's been voted on.
Now, Democrats of course, are seething over all of this. They say if that rule is put in place, then members of the leadership who are under a cloud can continue to work on Capitol Hill as if there was no issue at all.
DeLay, for his part, has tried to stay above the fray, saying he would really like the Republican conference to work its will on this issue.
Now, the Republicans who brought this forward have said they did so because, in their view, the investigation in Texas is politically motivated. Nonetheless, if they do vote for the rule, it could create quite a political firestorm.
In fact, the leader of Public Citizen, Joan Claybrook, put out a statement just a little while ago saying, quote, "It is bad enough that the Republican caucus reaffirmed DeLay as House majority leader, given three admonishments he's recently received from the House Ethics Committee. But it is an affront to all Americans," she says, "that House Republicans would rewrite the ethics rules to allow DeLay to continue serving even while under indictment."
It is important to note, he has not been accused of any crime. And Tom DeLay certainly has, again and again, said he's committed no wrongdoing.
Back to you.
SANCHEZ: Aside from the politics of this, is there concern among the Republicans that they may be sending the wrong message to middle America? I mean this would be seen by many as an inoculation of sorts against an indictment, something that certainly nobody else out there could get.
JOHNS: Well, certainly that's one of the political considerations they do have to make behind closed doors. There's also the question of whether, a practical matter, he could continue to serve, if indicted. That's a big question.
Regardless of the rule, whether he could actually go out again and again and do the work of the House of Representatives, the majority leader, and stand on the floor and talk in that capacity if Tom DeLay were indicted.
Still, all of this is speculation. Because as you know, there is no certainty on grand jury investigations that anybody's going to be indicted because all of their proceedings are secret, or supposed to be, Rick.
SANCHEZ: Exactly. And we should underline that, as you did. There is no indictment as of yet. Joe Johns, we thank you for that report. We'll certainly be checking back with you -- Daryn.
KAGAN: Marching orders at the CIA. The new director, Porter Goss, is telling employees to support President Bush and his policies.
Goss' directive appears in an internal memo obtained by "The New York Times." It goes on to state that CIA staffers should not champion opposition to the administration.
Critic say Goss is trying to stifle dissent and opinion. Goss has said that his nomination last summer raised questions of partisanship. He was outspoken as the Republican chairman of the House intelligence Committee.
SANCHEZ: Remembering Margaret Hassan. We'll have that for you and a whole lot more developments in Iraq, next. Stay with.
(COMMERCIAL BREAK)
SANCHEZ: We have an Amber Alert to report to you right now. It's coming from Collierville, Tennessee. Here's the information.
Police say that they're searching for a 10-year-old boy. He was reported missing from his residence near Memphis, and the Tennessee Bureau of Investigation has issue a statewide Amber Alert. That is why we're bringing it to you attention immediately.
Police are saying the parents of Hunter Wade Craig reported the boy went missing some time around 9 p.m. to 7 a.m. So sometime between last night and early this morning is when he went missing.
Don't know many of the circumstances at this point. The parents say they woke up this morning and he simply was not there. That's what a spokesperson for the bureau of investigation there has to say.
The young boy is described as being about 4'11." He's white with -- he's got blue eyes. He has brown hair. He's reported to be wearing green pajamas, when last seen. Now, anyone with any information on Hunter Wade Craig is being asked to call the Tennessee Bureau of Investigation. That's at 1-800- TBI-FIND. Or 1-800-824-3463. We'll certainly stay on top of that for you.
KAGAN: We move on to world news now. There were prayers and praise in Ireland this morning as hundreds mourners crammed a church to honor the memory of Margaret Hassan.
The director of CARE International was apparently executed by terrorists in Iraq yesterday after being kidnapped October 19. The Arabic news channel Al Jazeera says that it has a videotape of the execution. But there's no -- there's been no official confirmation.
Hassan was born in Ireland, raised in Britain. She was married to an Iraqi. At the memorial, a priest said that Hassan's killing represented an unspeakable loss.
And words are not even available or capable of describing what this woman did, in donating her life, in dedicating her life to the people of Iraq.
SANCHEZ: And then losing her life.
There is a huge story that we woke up to this morning. Two retail giants are suddenly joining forces. And the deal is worth billions.
KAGAN: What a mega-merger means for Sears, Kmart, and how about you that shop there? Our Ali Velshi takes a look, coming up next.
(COMMERCIAL BREAK)
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Aired November 17, 2004 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICK SANCHEZ, CO-HOST: Back in the United States, attention Kmart shoppers. You may be in for more than just a blue light special. Kmart is acquiring Sears, Roebuck & Company as part of an $11 billion merger. Industry insiders say it could be a win-win situation for both the companies and consumers. We're going to have more on the merger. That's coming up in about 30 minutes.
And in Washington this hour, President Bush is expected to nominate Margaret Spellings for education secretary. Spellings is Mr. Bush's domestic policy adviser. She would replace outgoing Education Secretary Rod Paige, who announced Monday that he intended to leave, as well. We will bring you the president's announcement live when it happens.
Eight a.m. on the West Coast, 11 on the East Coast. From the CNN Center in Atlanta, I'm Rick Sanchez.
DARYN KAGAN, CO-HOST: And good morning once again. I'm Daryn Kagan.
The world woke up to new nuclear worries this morning. And that's where we're going to start this hour.
New claims that Iran may be pulling a fast one on nuclear inspectors, while Russia is moving ahead with plans to counter a U.S. space shield. We've got these stories covered with our international correspondent, Matthew Chance in London. Moscow bureau chief Jill Dougherty is standing by, as well.
Matthew, we're going to start with you.
MATTHEW CHANCE, CNN CORRESPONDENT: Daryn, thank you very much.
Well, new allegations surfacing about Iran's nuclear ambitions, which threaten to undermine its recent commitments that it's made to the international community about not producing nuclear weapons.
An Iranian dissident opposition group says that it has information and photographs detailing a site in the Iranian capital, Tehran, where it says that it has located an area where there is centrifuge operations taking place, used of course, to enrich uranium for weapons production.
The group says the site, which is about 60 acres in size -- so quite a considerably big size -- is in the middle of Tehran, as they say. Also has chemical and biological facilities there, and has not been declared to any agency, including the IAEA, the U.N.'s nuclear watchdog.
Well, this is, obviously, if it's found to be true, that is, something that could have far-reaching consequences for Iran, for the international community.
The government of Iran has come out and stresses that this is not the case, calling it a lie, saying this kind of information is put out there by its opponents and by its enemies in the lead up to important meetings. And there is a very important meeting that we're expecting in the next week at the U.N.'s nuclear watchdog headquarters in Vienna, which will decide whether or not to refer Iran to the U.N. Security Council for the possibility of sanctions because of its nuclear activity.
The IAEA itself says it's not ruling out anything at this stage. It intends to launch its own investigation, send inspectors to the place in Tehran where the site is supposed to be located. And to do that first, before it jumps to any conclusions -- Daryn.
KAGAN: Matthew Chance in London, thank you.
Now shades of the Cold War in Russia. Our Jill Dougherty joins us for that story -- Jill.
JILL DOUGHERTY, CNN CORRESPONDENT: Well, Daryn, President Putin made this announcement as he was meeting with the top brass of the Russian military, saying that Russia is developing a new type of nuclear missile that no other country has.
(BEGIN VIDEO CLIP)
VLADIMIR PUTIN, RUSSIAN PRESIDENT (through translator): We will continue our efforts to build our armed forces as a whole and their nuclear component. We are not only conducting research and successfully testing new nuclear missile systems. I'm sure that they will be put into service within the next few years. And what's more, there will be developments. There will be systems of the kind that other nuclear powers do not have and will not have in the near future.
(END VIDEO CLIP)
DOUGHERTY: So President Putin said -- he did not say specifically what kind of weapon this was. But as we talk with some defense analysts, they tell us that presumably he was talking about a mobile version of the TOPAL-M (ph). That's a missile that the Russians already have deployed in silos. It actually has a range of 6,000 miles, and it can maneuver in order to avoid detection.
President Putin essentially said that terrorism still is one of the major threats to Russia and that Russia, in order to defend itself, has to keep up on the nuclear side.
Now, one question: is this the beginning of a new arms race? No. If you talk with experts, they say that is not the aim. Essentially, Mr. Putin has said strong things like this before, when he gets with the top brass, and essentially it's a bit of P.R. for Russia, to say it still is a nuclear power, and it still intends to remain one -- Daryn.
KAGAN: All right. Jill Dougherty with the latest from Moscow. Thank you -- Rick.
SANCHEZ: Now on to the situation in Iraq. Day two of a military operation against Iraqi insurgents in the northern city of Mosul.
Attackers fired mortar rounds on a police station there, trying to seize it, setting police cars and the building itself ablaze. Officials are trying to assess the damage in that. No one was inside at the time. Despite the attack, military officials say the situation in Mosul is now largely under control.
(BEGIN VIDEO CLIP)
BRIG. GEN. CARTER HAM, U.S. ARMY: The city is under the control of the Iraqi provisional government and Iraqi security forces, though as you've stated, a few days ago, on the 11th, we did have some trouble, and a number of police stations were under the brief control by insurgent forces. And that created some significant challenges for us. But by that evening, Iraqi security forces and us were present throughout the city.
(END VIDEO CLIP)
SANCHEZ: That's once again the very latest there from Mosul.
A new situation for Marines and U.S. troops. Now, it's believed that insurgents are focusing on Mosul to divert troops from their offensive that's been taking place in Falluja. U.S. military officials say troops secured Falluja, but they're still working to root out the final pockets of insurgent resistance there.
Congressional investigators say that Saddam Hussein diverted money from the U.N. oil-for-food program to pay families of Palestinian suicide bombers. Investigators uncovered the money trail during a probe of the oil-for-food program. The program was intended to provide humanitarian relief for Iraqis, but investigators at a Senate hearing said that the former Iraqi leader made billions in illegal revenue from the oil sales.
KAGAN: Republicans are behind closed doors this morning, circling the wagons around the majority leader, Tom DeLay. Congressional correspondent Joe Johns is on Capitol Hill. We'll have more on him in just a moment.
First, though, we want to go to the White House, and that is where we expect the president to appear at any moment. He is holding this event to nominate Margaret Spellings as his next education secretary.
Of course, there's been a lot of news over the last week about cabinet members that have chosen to move on. Spellings will replace Rod Paige.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you all. Please be seated.
KAGAN: Let's listen in.
BUSH: Good morning. I'm proud to announce my nomination of Margaret Spellings to be the secretary of education. I've known Margaret Spellings for more than a decade. I have relied on her intellect and judgment throughout my career in public service.
As governor of Texas, I called on her to serve the children of our state as my chief education adviser, a job she carried out with conviction and great results.
When I was elected president, I asked her to serve as assistant to the president for domestic policy. I've benefited from her knowledge and experience on many issues, from health care to immigration to job training.
I'm now calling on this energetic reformer to serve the children of America by continuing our vital work of improving our nation's public schools.
Margaret Spellings has a special passion for this cause.
She believes that every child can learn and that every school can succeed. And she knows the stakes are too high to tolerate failure.
She believes in high standards and providing the resources necessary to meet those standards.
In Margaret Spellings, America's children, teachers and parents will have a principled, determined ally in my Cabinet.
She has my complete trust. And she will be an outstanding secretary of education.
With the Senate's approval, Margaret Spellings will continue the work of a fine educator and leader, Secretary Rod Paige.
As secretary of education, this humble and decent man inspired his department and implemented the most significant federal education reform in a generation.
Today, thanks to the No Child Left Behind Act, students of every background are making hopeful progress in reading and math.
The nation's schools are stronger because of Rod Paige's leadership.
I'm grateful for his friendship.
I'm grateful for his years of service.
We've made great progress in our schools and there is more work to do. Margaret Spellings and I are determined to extend the high standards and accountability measures of the No Child Left Behind Act to all of America's public high schools.
We must ensure that a high school diploma is a sign of real achievement so that our young people have the tools to go to college and to fill the jobs of the 21st century. In all our reforms, we will continue to stand behind our nation's teachers who work so hard for our children.
The issue of education is close to my heart and on this vital issue there's no one I trust more than Margaret Spellings.
Two decades ago, as a young aide in the Texas state legislature, Margaret dedicated herself to strengthening public schools. She went on to help lead the Texas Association of School Boards, to advise two governors on school reform and to serve four years as my top domestic policy adviser right here in the White House.
And now her talent and idealism have brought her to the highest education office in the land.
Through it all, she has kept her good humor and her perspective on life. She is a devoted loving mother to Mary and Grace. And Laura and I are proud to count her and Robert as good friends.
I urge the Senate to promptly confirm Margaret Spellings as America's eighth secretary of education and I look forward to having her in my Cabinet.
Congratulations.
(APPLAUSE)
MARGARET SPELLINGS, EDUCATION SECRETARY NOMINEE: Thank you, Mr. President.
I am joined today, as you said, by my husband Robert and two of our four children, my daughters, Mary and Grace La Montagne, who get to miss school to be here.
On behalf of myself and my family, thank you, Mr. President, for this opportunity, not only to serve you and our country, but the children of America. I am humbled and honored by your confidence.
More than 10 years ago, you gave me the opportunity to work with you on improving Texas schools. You said then that the government should do a few things and do them well, and that one of those few things is educating all children.
I share your passion for education and your commitment to seeing that each and every child has the skills and qualities necessary to realize the American dream.
Our schools must keep their promise to all our children, and I pledge to do all I can to ensure that no child is left behind. It has been a privilege to serve as your domestic policy adviser for these past four years. I have mixed feelings about leaving this White House and will miss all of my wonderful friends and colleagues here: our great chief of staff, my wonderful Domestic Policy Council staff and, of course, all the great Texans who have been at your side for more than a decade.
One of those great Texans is, of course, Secretary Rod Paige, who distinguished himself as an educator and has served admirably as your secretary of education. He has laid the foundation for leaving no child behind, and I pledge to honor his lifelong commitment to children by continuing the good work he started.
To you, Mr. President, and to Mrs. Bush, who shares your commitment to education, thank you.
I am a product of our public schools. I believe in America's schools, what they mean to each child, to each future president or future domestic policy adviser and to the strength of our great country.
If confirmed by the Senate, I commit to work alongside America's educators and my new colleagues at the Department of Education to make our schools the finest in the world.
Mr. President, thank you for this opportunity and for your continued trust and confidence in me.
BUSH: Good job.
SPELLINGS: Thank you.
BUSH: Leave that there. Let's go.
KAGAN: An emotional Margaret Spellings, accepting President Bush's nomination to be the next secretary of education. These two have known each other a long time. They go back to Texas days, Margaret Spellings, working with the president six years as he was governor.
She's long been responsible for education policy, other domestic policy, as well. And she's been working in the White House in the first term.
Mother of four. Two of her kids skipped school. The new education secretary, to come to the White House. But you've got to figure, they learned a few things today.
Our Suzanne -- Suzanne Malveaux standing by, watching this as well as the other activities at the White House today.
Suzanne, hello.
SUZANNE MALVEAUX, CNN CORRESPONDENT: Hello, Daryn.
As you know, of course, this really follows the president's pattern here to pick a trusted adviser, somebody who he's already had experience working with at the White House, as well as back in his Texas days. The last four years, advising him on issues of health, as well as labor and education. Back in Texas, of course, being largely responsible for education and reform.
There's already been some initial reaction to the possibility of her actually taking that position. It was yesterday, the National Education Association. That is the largest teacher's association union in the country, issued a statement saying that they welcome Spellings, perhaps that this will change the tone between the secretary of education, that department, and its own organization.
This, after some controversy over Rod Paige's comments that he made, calling them a terrorist organization for not following through on the No Child Left Behind legislation, a comment that Paige later apologized for.
But it is clear that they feel this is someone that they can work with. Perhaps she is more moderate than Paige. But she also, too, was one of those critical players, a critical architect, in that legislation that won bipartisan support.
The president obviously feeling very comfortable with her credibility, as well as their very close relationship -- Daryn.
KAGAN: Suzanne Malveaux, a busy day at the White House, thank you.
SANCHEZ: A busy day weather-wise as well. We're checking in with Jacqui Jeras just a little while ago. And she told us that there were some warnings about tornados in the Houston area. And now, I think we're starting to get some information that there may have been a touchdown. Is that correct?
JACQUI JERAS, CNN METEOROLOGIST: Yes, we now have some ground truth now. La Port Emergency Management reporting some damage at Spencer and also Driftwood as the storms passed through. But we don't have any reports on how extensive that damage is.
Also, so we are tracking a confirmed tornado. And they've just extended the tornado warning at this time. So Chambers and Harris, you're still in this warning. And now Liberty County has been added, as well.
This is the area of concern. This is our Viper Doppler radar. The best thing I can tell you right now is that it's indicating that shear as strongly as it was before. But we're still seeing a pretty good signature here on Doppler radar. So this is still a very significant threat. A tornado may be on the ground at this time. It's tracking up to the north at 30 miles per hour.
And right here, you can see I-10. So this is not a time to venture out go to work, go out for lunch or anything. You want to stay indoors, away from doors and windows. You want to be taking cover at this time, as a tornado has been spotted and was confirmed on the ground just about 15, 20 minutes ago at this time. Want to zoom it out and show you a perspective. This does not include downtown Houston. You're OK if you're in downtown Houston. This is on the east side of town.
A couple cities I want to mention. We did talk about Bay Town. It's probably just to your north right now in Bay Town. Highlands, Barrett, and also Mt. Bellview are included. You are in the line of fire at this time.
So kind of a dangerous situation is starting to shape up right now. Just issued a brand-new tornado watch, which includes all of the Houston area, extending down to over towards Galveston, and just kind of barely nipping into the Beaumont area.
We'll take you out to a wider view now. Want to hop out of the screen here and show you our composite radar. There's the whole state of Texas. And there's another line I'm a little bit concerned about. Right here. It's just to the east of I-35.
And you can see a strong line of convection really starting to fire up right here. So I am concerned that we may be seeing some more rotation as we head into the afternoon hours for today.
Now, on top of all of that, the rainfall that's going to be coming down, very, very heavy. We could see rates of one to two inches per hour at times. And the ground here is already very, very saturated. So we will have a very significant threat of flooding throughout the day today, as well.
We'll get to the rest of the nation's forecast coming up before the end of the hour -- Daryn.
SANCHEZ: Jacqui, one more time, before we let you go. For those folks listening, who may not have heard, or those who are listening on the radio and didn't see the picture, tell us one more time the area where people would probably be well suited to stay indoors.
JERAS: Right. It's right along the I-10 corridor at this time. Just outside of the loop into the Houston area. Around Bay Town, towards the highlands, also into the Channelview area. It includes Liberty County, Chambers County and Harris counties in southern Texas.
SANCHEZ: Just east of the Houston area then.
JERAS: Yes.
SANCHEZ: All right. Thanks a lot, Jacqui.
KAGAN: Sorrow and outrage from around the world in the wake of the brutal murder of a beloved aid worker in Iraq. Details...
SANCHEZ: Coming right up.
KAGAN: Just ahead.
(COMMERCIAL BREAK) SANCHEZ: Republicans are behind closed doors this morning. They're circling the wagons around Majority Leader Tom DeLay. How are they doing it? Well, congressional correspondent Joe Johns is on Capitol Hill. He's following this story for us.
What are they doing, Joe?
JOE JOHNS, CNN CORRESPONDENT: Well, House Majority Leader Tom DeLay in the spotlight on this Wednesday. We saw him this morning leaving the White House here on Capitol Hill.
Some of his House colleagues have proposed changing the rule that requires members of the House leadership to step down, at least temporarily, if they are indicted on state or federal charges.
DeLay's name has come up in a Texas state investigation. In fact, three of his associates have already been indicted in that investigation.
Now, so far there has been no vote on this planned rule change, or this discussed rule change. We do know this morning members of the House Republican conference were meeting behind closed doors. There was a possibility that they could bring it up. But it's not clear that it's been voted on.
Now, Democrats of course, are seething over all of this. They say if that rule is put in place, then members of the leadership who are under a cloud can continue to work on Capitol Hill as if there was no issue at all.
DeLay, for his part, has tried to stay above the fray, saying he would really like the Republican conference to work its will on this issue.
Now, the Republicans who brought this forward have said they did so because, in their view, the investigation in Texas is politically motivated. Nonetheless, if they do vote for the rule, it could create quite a political firestorm.
In fact, the leader of Public Citizen, Joan Claybrook, put out a statement just a little while ago saying, quote, "It is bad enough that the Republican caucus reaffirmed DeLay as House majority leader, given three admonishments he's recently received from the House Ethics Committee. But it is an affront to all Americans," she says, "that House Republicans would rewrite the ethics rules to allow DeLay to continue serving even while under indictment."
It is important to note, he has not been accused of any crime. And Tom DeLay certainly has, again and again, said he's committed no wrongdoing.
Back to you.
SANCHEZ: Aside from the politics of this, is there concern among the Republicans that they may be sending the wrong message to middle America? I mean this would be seen by many as an inoculation of sorts against an indictment, something that certainly nobody else out there could get.
JOHNS: Well, certainly that's one of the political considerations they do have to make behind closed doors. There's also the question of whether, a practical matter, he could continue to serve, if indicted. That's a big question.
Regardless of the rule, whether he could actually go out again and again and do the work of the House of Representatives, the majority leader, and stand on the floor and talk in that capacity if Tom DeLay were indicted.
Still, all of this is speculation. Because as you know, there is no certainty on grand jury investigations that anybody's going to be indicted because all of their proceedings are secret, or supposed to be, Rick.
SANCHEZ: Exactly. And we should underline that, as you did. There is no indictment as of yet. Joe Johns, we thank you for that report. We'll certainly be checking back with you -- Daryn.
KAGAN: Marching orders at the CIA. The new director, Porter Goss, is telling employees to support President Bush and his policies.
Goss' directive appears in an internal memo obtained by "The New York Times." It goes on to state that CIA staffers should not champion opposition to the administration.
Critic say Goss is trying to stifle dissent and opinion. Goss has said that his nomination last summer raised questions of partisanship. He was outspoken as the Republican chairman of the House intelligence Committee.
SANCHEZ: Remembering Margaret Hassan. We'll have that for you and a whole lot more developments in Iraq, next. Stay with.
(COMMERCIAL BREAK)
SANCHEZ: We have an Amber Alert to report to you right now. It's coming from Collierville, Tennessee. Here's the information.
Police say that they're searching for a 10-year-old boy. He was reported missing from his residence near Memphis, and the Tennessee Bureau of Investigation has issue a statewide Amber Alert. That is why we're bringing it to you attention immediately.
Police are saying the parents of Hunter Wade Craig reported the boy went missing some time around 9 p.m. to 7 a.m. So sometime between last night and early this morning is when he went missing.
Don't know many of the circumstances at this point. The parents say they woke up this morning and he simply was not there. That's what a spokesperson for the bureau of investigation there has to say.
The young boy is described as being about 4'11." He's white with -- he's got blue eyes. He has brown hair. He's reported to be wearing green pajamas, when last seen. Now, anyone with any information on Hunter Wade Craig is being asked to call the Tennessee Bureau of Investigation. That's at 1-800- TBI-FIND. Or 1-800-824-3463. We'll certainly stay on top of that for you.
KAGAN: We move on to world news now. There were prayers and praise in Ireland this morning as hundreds mourners crammed a church to honor the memory of Margaret Hassan.
The director of CARE International was apparently executed by terrorists in Iraq yesterday after being kidnapped October 19. The Arabic news channel Al Jazeera says that it has a videotape of the execution. But there's no -- there's been no official confirmation.
Hassan was born in Ireland, raised in Britain. She was married to an Iraqi. At the memorial, a priest said that Hassan's killing represented an unspeakable loss.
And words are not even available or capable of describing what this woman did, in donating her life, in dedicating her life to the people of Iraq.
SANCHEZ: And then losing her life.
There is a huge story that we woke up to this morning. Two retail giants are suddenly joining forces. And the deal is worth billions.
KAGAN: What a mega-merger means for Sears, Kmart, and how about you that shop there? Our Ali Velshi takes a look, coming up next.
(COMMERCIAL BREAK)
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