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American Morning

Are They Happy at White House With the President's Performance?; Discussion with California Congressman Henry Waxman

Aired January 30, 2002 - 09:06   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.
PAULA ZAHN, CNN ANCHOR: Up front this morning: the State of the Union. Republicans have been buoyant, Democrats slightly more circumspect backing the president on the war against terrorism and expressing willingness to work with on economic matters, despite some policy differences. Are they happy at the White House about the president's performance?

Let's go to CNN Senior White House correspondent John King who joins us from outside the executive mansion.

I'll tell you one thing, John, if they look at the CNN/"USA Today"/Gallup poll, they've got to be really pleased with how the president did last night. Majority of Americans pretty much thought a home run, didn't they?

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: The polling has been quite optimistic and upbeat for the president's speech, and here at the White House, Paula, senior officials saying this morning they are not surprised, but very happy, with not only the public's reaction, but also the reaction of both Democrats and Republicans who are in the chamber and the House of Representatives last night as the president delivered his State of the Union Address.

The president will hit the road today to highlight themes in his speech. Aids this morning making clear, though, that the president did not necessarily mean military options when he was looking ahead in his state of the Union speech last night and talked quite aggressively about potential future fronts on the war on terrorism. The president singled out three countries, North Korea, Iran, and Iraq. He said all three were continuing to support terror groups, all three continuing to try to build weapons of mass destruction.

The president quite muscular in his language, that a term used by a senior official here, likening them to an abscess of evil.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: And all nations should know America will do what is necessary to ensure our nation's security. We'll be deliberate. Yet time is not on our side. I will not wait on events while dangers gather. I will not stand by as peril draws closer and closer. The United States of America will not permit the world's most dangerous regimes to threaten us with the world's most destructive weapons.

(APPLAUSE)

(END VIDEO CLIP)

KING: Mr. Bush, as he travels today, will focus on one other element of his speech, the so-call debate over homeland Security. Mr. Bush wants to nearly double what the federal government spends to defend the United States against potential future terrorist strikes. He will talk a lot today about his proposal for a USA freedom corps. Volunteers, retired doctors, retired nurses and others to pitch in and help in times of crisis, and if necessary, at times of national disaster.

Encouraging news about the economy this morning. The economy actually grew in the last quarter of last year. That surprises everybody. It might take some of the momentum of one of the things the president highlighted in speech, the state of U.S. economy. Mr. Bush saying the economy remains in recession. He has tried, without success so far, to reach agreement with Democrats on a package, an economic stimulus package, largely based on tax cuts. Mr. Bush called on the Congress to work with him in a bipartisan manner when it comes to economic security, just as it has when the issue is national security.

(BEGIN VIDEO CLIP)

BUSH: The way out of this recession, the way to create jobs, is to grow the economy by encouraging investment in factories and equipment, and by speeding up tax relief so people have more money to spend. For the sake of American workers, let's pass a stimulus package.

(END VIDEO CLIP)

KING: The speech viewed here at the White House as a key turning point, especially when comes to the war on terrorism. Not once did the president speak the name Osama bin Laden, only once did he name the Al Qaeda organization. The president looking much more ahead to potential future fronts in this war and again here at the White House this morning believe the speech well received, and the president has the overwhelming support of the American people -- Paula.

ZAHN: John King, very much appreciate that follow-up report. And we know what a long day you pulled yesterday. Thanks for joining us on A.M. this morning.

Appreciate it.

One word that was also not in the State of the Union -- like Osama bin Laden -- Enron, but it was clear that that was what was on his mind in the president's message about corporate responsibility.

(BEGIN VIDEO CLIP)

BUSH: I ask Congress to enact new safeguards for 401(k) and pension plans.

(APPLAUSE)

BUSH: Employees who have worked hard and saved all their lives shouldn't have to risk losing everything if their company fails.

(END VIDEO CLIP)

ZAHN: There are fresh charges today in the Enron case. The "New York Times" reports that the document shredding went on at the company into the middle of this month. And the Federal Energy Regulatory Commission is looking into the possibility that Enron fixed energy prices. Lots of territory to cover with California Congressman Henry Waxman, who was one of the first to call for an investigation into the fallen energy giant.

Welcome to A.M. Good to see you, sir.

REP. HENRY WAXMAN (D), CALIFORNIA: Thank you very much. I'm pleased to be with you.

ZAHN: Thank you.

So Congressman Waxman, what is your reaction to this report that this document shredding continued until mid-January?

WAXMAN: I think we need to look at this Enron situation in the context of a small group of executives who -- well-connected insiders -- robbed people of their financial security, whether they're employees or the investors in the corporation. It's like breaking into thousands of homes and stealing people's life savings. Our job in the Congress to find out who did it, how they did it, and who helped them do it.

And any way you look at this Enron situation, it's an outrage, it's indefensible; it's so wrong. And we've got to find out how to make sure this sort of thing never happens again.

ZAHN: Congressman, how can anybody explain how routine shredding would continue even after the scrutiny of this company started? I know -- we know that among things that where shredded were payroll rungs, old personnel records, performance reviews, medical records, and other items that this one employee said were sensitive employee documents.

WAXMAN: It's absolutely inexcusable. It's incomprehensible, and it's got to be a violation of the law, because investigations, both criminal and congressional, are under way. And to shred in light of those investigations is clearly a cover-up. There are people who don't want us to know what happened at Enron.

ZAHN: We want to move to the issue of what your -- the information you are attempting to get from the vice president. You have subpoenaed the records of his office. But the White House won't budge. You have "The Wall Street Journal" even accusing you of stonewalling. A lot of people don't think you have proper legal claim to this information.

But here is what Vice President Cheney had to say in the editorial yesterday in "USA Today" about your investigation. Quote: "The problem we've had is that representative Henry Waxman doesn't want to have to deal with the substance of the policy. He attacked by challenging the process, by saying didn't meet with the right people. He's gotten the GAO to demand we produce information on how the record was put together. We've given them an awful lot -- financial records, the work that was done by federal agencies. What we have not given them is a listing of everybody I met with, of everything that has been discussed. That would be unprecedented, making virtually impossible for me to have confidential conversations.

You're reaction to what the vice president had to say?

WAXMAN: The request of information from the vice president's task force was made by the nonpartisan Government Accounting Office. It was at my request and the request of other members of Congress, particularly Congressman John Dingell. I'm at a loss to understand why the vice president is stonewalling on this issue, because it's a routine request. It's the kind of request that's been made of other administrations by the General Accounting Office, and they've invariably complied with the information.

No one has asked for the records of private conversations the vice president or the president has had with their staff or people within the administration. All that the General Accounting Office has asked for is the presentation by outside groups, special interest groups, lobbyist for those groups, groups that have given campaign contributions to the executive and the legislative branch, and the names of their lobbyist, and what they ask for, for their special industry request. I don't think that's intrusive. I think that's kind of information that the American people and the Congress have a right to know.

ZAHN: So essentially you're saying you don't believe these request erode either the power of the presidency or the vice presidency, and their ability to hold private meeting in the future.

That's, of course, the White House argument.

WAXMAN: I know that's their argument. I don't understand that argument. I can't see it. No one say the vice president has to tell the GAO who the vice president met privately. It's only in the context of the energy task force that he chaired, and we want to know who made a presentation to the energy task force asking for special treatment from this energy task force as it pertained to their particular industry, or client or philosophical point of view.

I would put it the reverse way. If the administration succeeds in stonewalling on this issue, it erodes the ability of the Congress to do the job of conducting oversight. If we can't find what the executive branch is doing in their official capacity as a maker of policy, we can't do our job to oversee them. That means the checks and balances of our constitutional system are turned around, and the balance of power heavily weighted in the executive branch. That's what the Constitution envisioned.

ZAHN: Only time for yes or no. Are you convinced there will be criminal indictments here down the road?

WAXMAN: On the Enron situation, I do believe there will be criminal indictments. These were criminal acts.

ZAHN: All right, Congressman Waxman, appreciate your time today. We will very much be following the activities of your committee.

Thanks again for joining this morning on A.M.

WAXMAN: Thank you.

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