Return to Transcripts main page

American Morning

Showdown: Iraq Aid

Aired October 22, 2003 - 07:08   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.


BILL HEMMER, CNN ANCHOR: In Washington, the White House is heading for a showdown with Congress over this Iraqi aid bill. The president threatens to veto any bill that will require any portion of the aid to be paid back. And with the donors' conference kicking off tomorrow in Madrid, Spain, the timing could not be worse for the White House.
CNN congressional correspondent Jonathan Karl live this morning on Capitol Hill with this.

Jonathan -- good morning there.

JOHNATHAN KARL, CNN CONGRESSIONAL CORRESPONDENT: Good morning, Bill.

Well, the president has made it clear that he wants his $87 billion for Iraq and Afghanistan, but he wants it on his terms. The veto threat came from the president's budget director, and it hit Capitol Hill up here with a thud.

(BEGIN VIDEOTAPE)

KARL (voice-over): One Republican Senator, who supports the president on the issue, called the veto threat stunningly stupid. And Republican Susan Collins, who opposes the president on this, told CNN she was shocked by the threat, adding: "It seems unnecessary and unwise" -- "unwise" Collins said, because the president was probably going to prevail anyway.

The Senate voted for loans. The House did not. The differences are being worked out now by Republican leaders. But just a couple of hours after the veto letter was delivered, the House dealt the president a symbolic blow.

In a non-binding vote, the House overwhelming voted to instruct negotiators to go along with the Senate and turn some of the money into a loan to be repaid by Iraq. Eighty-four Republicans defied the president and voted yes.

REP. DANA ROHRABACHER (R), CALIFORNIA: Why don't we permit half of this, $10 billion of this, to go in the form of a loan that can be repaid? After all, we are in debt $400 billion a year now. That's our level of deficit spending. We have to borrow that $10 billion to give it to Iraq as a gift. Why don't we let them repay it after 20 years, put it in the form of a loan?

(END VIDEOTAPE) KARL: Now, even with the controversy surrounding the veto threat and that vote in the House, it is expected that the president will ultimately win, but only after you have now at the Senate and the House going on record disagreeing with him on this question of loans -- Bill.

HEMMER: Give me a little congressional 101. In your story there, you said it was a nonbinding vote. What does that mean then? Does that hold true or not?

KARL: It does. It is nonbinding, because this is something that's going to be hammered out by a committee of all Republicans. Members of the Senate and members of the House are getting together. They are negotiating this. The president has a lot of leverage in that committee, because it is Republican leaders, most of whom back him on this issue. So, that's why he's expected to win here.

HEMMER: Jonathan, thanks. Jonathan Karl in D.C.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.






Aired October 22, 2003 - 07:08   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: In Washington, the White House is heading for a showdown with Congress over this Iraqi aid bill. The president threatens to veto any bill that will require any portion of the aid to be paid back. And with the donors' conference kicking off tomorrow in Madrid, Spain, the timing could not be worse for the White House.
CNN congressional correspondent Jonathan Karl live this morning on Capitol Hill with this.

Jonathan -- good morning there.

JOHNATHAN KARL, CNN CONGRESSIONAL CORRESPONDENT: Good morning, Bill.

Well, the president has made it clear that he wants his $87 billion for Iraq and Afghanistan, but he wants it on his terms. The veto threat came from the president's budget director, and it hit Capitol Hill up here with a thud.

(BEGIN VIDEOTAPE)

KARL (voice-over): One Republican Senator, who supports the president on the issue, called the veto threat stunningly stupid. And Republican Susan Collins, who opposes the president on this, told CNN she was shocked by the threat, adding: "It seems unnecessary and unwise" -- "unwise" Collins said, because the president was probably going to prevail anyway.

The Senate voted for loans. The House did not. The differences are being worked out now by Republican leaders. But just a couple of hours after the veto letter was delivered, the House dealt the president a symbolic blow.

In a non-binding vote, the House overwhelming voted to instruct negotiators to go along with the Senate and turn some of the money into a loan to be repaid by Iraq. Eighty-four Republicans defied the president and voted yes.

REP. DANA ROHRABACHER (R), CALIFORNIA: Why don't we permit half of this, $10 billion of this, to go in the form of a loan that can be repaid? After all, we are in debt $400 billion a year now. That's our level of deficit spending. We have to borrow that $10 billion to give it to Iraq as a gift. Why don't we let them repay it after 20 years, put it in the form of a loan?

(END VIDEOTAPE) KARL: Now, even with the controversy surrounding the veto threat and that vote in the House, it is expected that the president will ultimately win, but only after you have now at the Senate and the House going on record disagreeing with him on this question of loans -- Bill.

HEMMER: Give me a little congressional 101. In your story there, you said it was a nonbinding vote. What does that mean then? Does that hold true or not?

KARL: It does. It is nonbinding, because this is something that's going to be hammered out by a committee of all Republicans. Members of the Senate and members of the House are getting together. They are negotiating this. The president has a lot of leverage in that committee, because it is Republican leaders, most of whom back him on this issue. So, that's why he's expected to win here.

HEMMER: Jonathan, thanks. Jonathan Karl in D.C.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.