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American Morning

President Bush, Prime Minister Tony Blair Stand Together Behind Iraq's New Government; Immigration Battle

Aired May 26, 2006 - 07:00   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR: President Bush and British Prime Minister Tony Blair standing together behind Iraq's new government, admitting, though, mistakes were made. Kathleen Koch live at the White House with more on the primetime news conference.
Hey, Kathleen. Good morning.

KATHLEEN KOCH, CNN CORRESPONDENT: Good morning, Soledad.

And yes, last night, Iraq was really the topic of this press conference, despite so many of domestic issues on -- that both men are facing in their own countries. And when it comes to Iraq, of course, both men have suffered heavily in the polls. President Bush's approval rating now hovering in the mid-30s. Tony Blair's even lower, lower in the upper 20s. Still, last night, both men appeared very resolute, both insisting that they believe that did do the right thing in Iraq.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRES. OF THE UNITED STATES: The birth of a free and Democratic Iraq was made possible by the removal of a cruel dictator. The decision to remove Saddam Hussein from power was controversial. We did not find the weapons of mass destruction that we all believed were there. And that's raised questions about whether the sacrifice in Iraq has been worth it. Despite setbacks and missteps...

(END VIDEO CLIP)

KOCH: ... also refused to give any sort of a timetable for the withdrawal of troops from Iraq. Great Britain right now having roughly a thousand troops there in theater. The U.S. just over 131,000.

Now, the president has no public events on his schedule today, though he is due to apparently have lunch with Prime Minister Blair. That before heading to Camp David this afternoon for the weekend.

Back to you.

S. O'BRIEN: Let's talk a little before specifically, Kathleen, about regrets. What did the president say was his biggest regret?

KOCH: Well, he did say one item that he regrets is a bit of his language that he used early on in the war on terror. President Bush admitting last night that some of it may have given some people the wrong impression.

(BEGIN VIDEO CLIP)

BUSH: Saying "bring it on," kind of tough talk, you know, that sent the wrong signal to people, that I learned some lessons about expressing myself maybe in a little more sophisticated manner.

(END VIDEO CLIP)

KOCH: President Bush did say when it came to the absolute biggest mistake he believes that the U.S. has made in Iraq, that was the prison abuse in Abu Ghraib, he says it has cost the U.S. heavily when it comes to world public opinion -- Soledad.

S. O'BRIEN: Kathleen Koch for us this morning at the White House. Kathleen, thanks.

KOCH: You bet.

S. O'BRIEN: Later this hour, we're going to live to our European political editor in London with CNN's unique the ability to bring you the very latest reaction to the president and the prime minister's admissions -- Miles.

MILES O'BRIEN, CNN ANCHOR: Mexican President Vincente Fox wraps up his U.S. tour today in Los Angeles. Fox spent yesterday talking to the California state legislature and Governor Arnold Schwarzenegger. Schwarzenegger now favoring sending National Guard troops to the border, at least temporarily. Fox doesn't like that idea. Fox called the Senate bill that passed in Washington a monumental step forward, however.

In the House, they're calling it something else. The immigration bill lawmakers there passed in December calls for mass deportations from the nation's 11 or 12 million illegal immigrants. That's a far cry from the Senate bill that would give illegals a path toward citizenship.

So now the real fight begins in many respects. AMERICAN MORNING's Bob Franken in Washington with more.

Good morning, Bob.

BOB FRANKEN, CNN NATL. CORRESPONDENT: Good morning.

It's going to be interesting to see how long they keep that conference committee open, because it's going to be probably fairly impolite on occasion, to put it mildly. There are such huge differences between the Senate legislation, and that which the House has passed. And on both sides, there is some indication that there's going to be very, very tough stance in favor of the particular legislation, complicated because in the Senate, there's some opposition. And what is at stake here, of course, is the political aspect of this. President Bush is really put his prestige on getting an immigration reform package. He strongly believes in one similar to the one that the Senate passed. So if this does fail, he and perhaps his fellow Republicans are going to be suffering at the polls in November. If there is no legislation that's passed. If it's something less than what the conservative base wants, that could be a problem for the Republicans, too. Some really, really complicated days ahead -- Miles.

M. O'BRIEN: Bob, tell us about the possibility here of a compromise. I mean, is there -- when you talk to lawmakers, and you have the conservative base -- really, a lot of internal GOP fighting going on here, what are the points of confluence here between these two bills?

FRANKEN: Well, that's something somebody's going to have to be creative and come up with. But they do have the advantage of most people believing that it's going to be impossible to do that. That means that there are lowered expectations.

Everybody agrees, however, that it's going to take some very effective involvement by the president.

(BEGIN VIDEO CLIP)

SEN. ARLEN SPECTER (R), JUDICIARY CHAIRMAN: We look forward to the president's more intense participation and he is the leader, and we have the House and the Senate, controlled by the Republican Party, and there is an important issue, political issue, about the ability of Republicans to govern. Whether we can do that, if there is an election in November, and our leadership position as Republicans is on the line, and I think that will weigh heavily in the conference.

(END VIDEO CLIP)

FRANKEN: Well, contrary, Miles, to any rumor, there is no plan to send the National Guard to the Conference Committee.

M. O'BRIEN: Well, that would be interesting. Although, it is still early. Bob, thank you very much -- Soledad.

S. O'BRIEN: Last day on the job for outgoing CIA Director Porter Goss. Goss announced his resignation two weeks ago, after just a year on the job. President Bush nominated Chief General Michael Hayden as his replacement. General Hayden is expected to be confirmed today.

Another member of the president's team, Treasury Secretary John Snow, could be leaving soon. Administration officials and people close to the cabinet member say he's going to resign once the president picks a successor. Snow says he would like to return to the private sector.

(NEWSBREAK)

(WEATHER REPORT)

M. O'BRIEN: Coming up on the program, more than a thousand airport security uniforms and badges stolen. What is the risk to airport security? We'll get into that. CAROL COSTELLO, CNN ANCHOR: I'm Carol Costello. Don't like amnesty for illegal immigrants? Well, it's happening right now. The road to citizenship, coming up.

S. O'BRIEN: And if high gas prices are keeping you off the roads this holiday weekend, listen up. We're going to tell you about some folks who are willing to pay for your gas. There's a catch, though.

We'll explain just ahead. Stay with us.

(COMMERCIAL BREAK)

(NEWSBREAK)

O'BRIEN: And on Capitol Hill, corruption is in the air. And with midterm elections just six months away, Republican Party leaders are worried.

CNN's Joe Johns has our report this morning.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN CORRESPONDENT: A head-spinning number of investigations into top republican politicians and operatives, on all manner of issues.

RANDALL ELIASON, FORMER JUSTICE DEPARTMENT PROSECUTOR: There is a definite flurry of high-level corruption cases that I don't think we've ever seen before.

JOHNS: Keeping them honest and keeping you up to speed, will break them down. Category one, the guilty. At the top of the list, not where you want to be, politicos who fought the law and the law won. Ex-San Diego republican congressman Randy "Duke" Cunningham, a war hero turned top gun on the take, currently cooling his heels in jail after receiving $2.4 million in bribes. He's up top with former super-lobbyist Jack Abramoff, wheeler dealer felon, now convicted of conspiracy, fraud, tax evasion. Abramoff has already pleaded guilty and he's cooperating with prosecutors in a Washington, D.C. probe that's got a lot of people, shall we say, sweating it out. Former federal prosecutor Eliason spent 10 years rooting out corruption.

ELIASON: There already have been a number of guilty pleas and a number of more potential ones to come.

JOHNS: So that's the top of the list. Those lower down are in less trouble. In fact the rest on the list have either denied wrongdoing or pleaded not guilty. So on to category two, the indicted. Scooter Libby, former top assistant to the vice president now charged in federal court with lying to a grand jury in connection with revealing the name of covert CIA employee Valerie Plame. And in Texas on a state charge of money laundering, former house majority leader Tom DeLay is waiting for his day in court, though he leaves office next month.

They could go to jail, or they could get off, but the process is well under way. Category three on our legal list looks like trouble, that's republican congressman Bob Nay of Ohio. Referred to in court filings as having traded favors for gifts in the Abramoff investigation. But Nay insists he was duped by Abramoff. Category four, information please, powerful Senate Majority Leader Bill Frist has also come under scrutiny for stock deals, but the case has been quiet of late. Frist denies wrongdoing.

And last but not least, Presidential Adviser Karl Rove, who also denies wrongdoing, but has taken repeated trips to testify before a grand jury about the outing of CIA operative Valerie Plame. Same deal that got Scooter Libby into trouble. That's the list, one that no one wants to be on top of. And one that no one in the republican party wants to see grow longer.

Joe Johns, CNN, Washington.

(END OF VIDEOTAPE)

S. O'BRIEN: Joe's report first aired on "ANDERSON COOPER 360," and you can catch "AC 360" weeknights at 10:00 p.m. Eastern.

Ahead this morning, a frightening security breach to tell you about. More than a thousand TSA uniforms and badges are stolen or missing. What does it mean for passenger safety? We'll take a look.

And if you're feel the pinching at the pump over the holiday weekend, we've got some news you can use. Guess what, someone is going to pay for your gas. There's a catch. We'll tell you what it is, just ahead.

(COMMERCIAL BREAK)

S. O'BRIEN: Latest CNN Gas Gauge for you: the national average, $2.86 for regular unleaded. A month ago, it was $2.92. A year ago, it was $2.11. Higher gas prices mean shorter trips. Millions of people, though, still hitting the highway for the Memorial Day weekend.

CNN's Allen Chernoff is live along a rest stop along the New Jersey Turnpike.

Hey, Allan. Good morning.

ALLAN CHERNOFF, CNN CORRESPONDENT: Good morning, Soledad.

You know, people still want to take vacations for the holiday weekend, but with gas prices like this, many families have to adjust their plans.

(BEGIN VIDEOTAPE)

CHERNOFF (voice-over): Fill-ups are painful for Ingrid Ciaston, who drives one of the biggest SUVs on the road.

INGRID CIASTON, TRAVELER: Sixty-three dollars and one cent.

CHERNOFF: Wow.

CIASTON: That's a lot, yes.

CHERNOFF (voice-over): Enough to squeeze her family's Memorial Day weekend plans. In years past, the Ciastons have driven both their GMC Yukon and Dodge Ram pickup to their summer home on the New Jersey shore. But not this year. Walt Ciastin, who sells insurance part time, says only one of the gas guzzlers will be hitting the road.

WALT CIASTON, TRAVELER: Between the two vehicles, we would use a good tankful a gas for the trip back and forth, which you're talking in the rank of 30 gallons or whatever it is. By using one, we'll cut that in half.

CHERNOFF: Along the nation's highways, many Americans are cutting back this holiday weekend. If not for the size of their vehicle, than with the distance they'll travel.

New Jersey resident Bob Mayfield typically drives to Maine for Memorial Day.

BOB MAYFIELD, TRAVELER: This year, with the gas prices, we're going down to Pennsylvania, just a couple of hours away.

CHERNOFF (on camera): Closer?

MAYFIELD: A lot closer, a lot closer. A lot less gas.

CHERNOFF (voice-over): Gas is only one part of a more expensive holiday for those who will be renting vehicles. Rates are up 20 percent from last year. It will be a challenge to save elsewhere. AAA estimates food and lodging up more than five percent, meaning a family of four will spend an average $261 a day for meals and hotel this weekend. That's why the Ciaston family plans to eat at their vacation home, which will help them continue feeding the GMC Yukon.

(END VIDEOTAPE)

CHERNOFF: A little bit of fact checking over the past hour, and learned that it took only 25 months to build the New Jersey turnpike. Soledad, I think it takes that long for my wife and I to agree where to go on vacation.

S. O'BRIEN: The perennial debate.

I see the gas prices over your shoulder. It's hard to read, though, what is that $2.97 for a gallon of regular?

CHERNOFF: $2.97.9, so that's significantly above the national average. And keep in mind, taxes here in New Jersey are very low for gasoline, but nonetheless, pretty high here along the turnpike, $2.97.9 for regular.

S. O'BRIEN: Everybody's feeling it. All right, Allan Chernoff for us this morning. Allan, thanks -- Miles. M. O'BRIEN: Well, so How does a bad breakfast and a tank of unleaded sound to you? Some innkeepers are so worried about high gas prices, they're giving you more than down comforters and French toast the next morning.

CNN's Kyung Lah is in Atlanta. Unfortunately didn't get to go to a bed and breakfast. She did get to a station, though.

Good morning, Kyung.

KYUNG LAH, CNN CORRESPONDENT: You know they take me to the best places, Miles.

You heard Allan talking about the travelers, but it's also the businesses that getting creative. They're trying to fill up the hotels by filling up your tank.

(BEGIN VIDEOTAPE)

LAH (voice-over): Not far from the city rush of Atlanta, about a two-hour drive along a country road.

ADELE GOODMAN, TRAVELERS REST B&B: Welcome back.

LAH: An out of way bed and breakfast...

GOODMAN: Enjoy the Victorian suite. You know you've got the jacuzzi tub here.

LAH: ... is offering an incentive to Memorial Day travelers like the Naturman.

GOODMAN: Part of your package is a $20 gas card for your two- night stay with me, and in fact you can use it for anything from gas to snacks, to anything that comes in handy.

ROY NATURMAN, TRAVELER: It's Memorial Day weekend. You're going to pay. That's the way business runs.

LAH (on camera): So it helps to have a little extra?

NATURMAN: Absolutely. Everything helps, yes.

LAH: The owners of Travelers Rest Bed and Breakfast says she decided to offer the incentive after seeing her business drop 20 percent as pump prices rose in recent months.

GOODMAN: I'd rather help people out, sell that room tonight, give them a little bit of relief, and make sure that my occupancy is as high as possible.

LAH: Goodman is not alone. B&Bs and hotels are offering similar deals to get folks into their cars and onto the roads. Bedandbreakfast.com has a promotion called "Tanks a Lot."

SANDY SOULE, BEDANDBREAKFAST.COM: Free gas card, free detailing, free car wash, free kayak rides, all kinds of special stuff to ease the pain of gas prices.

LAH: And if you make a reservation through hotels.com, they'll give you $30 in exchange for your mailed-in gas receipt.

SCOTT BOOKER, HOTELS.COM: I think people are starting to look at their pocketbook and seeing, you know, that price at the pump really start to rise.

LAH: AAA estimates that more than 31 million Americans will drive this Memorial Day weekend, 200,000 more than last year. The difference now, says AAA, families won't travel as far from home, about as far as a tank of gas takes them. Cities like Atlanta say they hopes to make up for the loss of out-of-state visitors by attracting locals.

LAUREN JARRELL, ATLANTA CONVENTION & VISITORS BUREAU: think people take for granted what's out their back door and down the road. Take a little time to explore what your city is made up of and what their own identity is.

LAH: And for travelers like the Naturmans, who aren't completely put off by the high price of gasoline, there are ways to recoup the costs, still enjoy a little rest and relaxation.

GOODMAN: Thanks again so much for staying. And I hope to see you again.

NATURMAN: You will. As you know, we love it here. Thank you.

(END VIDEOTAPE)

LAH: A word to the wise, though. AAA does report that hotel rates overall up five percent this year versus last Memorial Day. Miles, don't just get lured in by a free gas card.

M. O'BRIEN: All right. Good advice. And hopefully you'll get to that bed and breakfast eventually. Thanks for dropping by, Kyung Lah.

(BUSINESS HEADLINES)

S. O'BRIEN: Ahead this morning, President Bush and British Prime Minister Tony Blair acknowledge mistakes in Iraq. We'll take you live to London to see how folks there are reacting this morning.

Plus, a look at why some people who enter this country illegally might actually get an advantage in becoming U.S. citizens.

Stay with us. We're back in a moment.

(COMMERCIAL BREAK)

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