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The Situation Room
Deadline for Iraqi Constitution Approaching; Gaza Pullout; Plane Crash Probe
Aired August 15, 2005 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, CNN ANCHOR: I'm Wolf Blitzer, and you're in THE SITUATION ROOM, where news and information from around the world arrive at one place simultaneously. Standing by to bring you all the top stories, CNN reporters from New York to Baghdad.
And happening right now in Baghdad, it's 11:00 p.m. There are eleventh hour snags in a draft constitution. As the deadline looms, is Iraq already headed toward Islamic rule?
And it's 10:00 p.m. in Gaza. Settlers there putting up human barricades as Israeli troops move in with eviction notices. Will hard- liners on both sides allow a peaceful pullout?
And it's 10:00 p.m. in Greece. A midair mystery for investigators. Were passengers and crew aboard a stricken airliner dead before it ever hit the ground?
You're in THE SITUATION ROOM.
As explosions echo in Baghdad, has Iraq been thrown into a constitutional crisis even before it has a constitution? With the deadline just an hour away, the framers have run into trouble, dotting the I's and crossing the T's.
CNN's Aneesh Raman is live in Baghdad.
It's not just the I's and the T's. Presumably, it's a lot more serious than that.
Aneesh?
ANEESH RAMAN, CNN CORRESPONDENT: Wolf, it is. In the next 60 minutes, Iraq could face a huge political crisis.
Here's what happened today.
The National Assembly was set to meet at 6:00 p.m. to receive a draft constitution we were told for days was essentially complete. That meeting twice delayed. They were to have convened an hour ago. They have yet to do so as political leaders are still hammering out key compromises and key issues that remain.
Three options for them right now, Wolf. They can bring a draft constitution to the National Assembly in the next 60 minutes. That meets the deadline. Whether that draft encompasses everyone's concern is, of course, now yet to be seen. The second option, the National Assembly convenes and amends the law, changes the deadline by a day, by a week, by a month, to give themselves more time.
And the third, perhaps the most corrosive to the political process, is that if nothing happens in the next 60 minutes, by law this government is dissolved. Elections take place in December. They are caretakers until then. A new transitional National Assembly comes into power, and this entire process starts again, Wolf.
Everyone trying to avoid that. We don't know which of the former two, though, could emerge in the next 60 minutes.
Wolf?
BLITZER: Aneesh, the two big issues, will Iraq become an Islamic republic? And how much of a federation will it be? Will there be an autonomous Kurdish state in the north, an autonomous Shiite state in the south?
Is there any movement on either of those two remaining unresolved issues?
RAMAN: Well, it seems on the former, on the role of Islam, there has been a lot of consensus. Everyone is assuring us that this constitution will protect everyone's rights, specifically women's rights. They were, of course, the most vocal in making sure Islam was not the sole source of Iraqi law.
But on the issue of federalism, that remains the impasse at hand, it seems. The Kurds and the Shia would like explicit writing that allows for autonomous regions. The Sunnis, though, want this entire conversation sidelined and left for the new government that would come into power, Wolf, at the end of this year.
BLITZER: All right. Aneesh Raman. We'll be back with you throughout this hour and the coming hours.
Aneesh Raman in Baghdad.
A momentous and painful milestone for Israel today. Soldiers squared off with settlers, serving eviction notices as the Jewish state is preparing to give up its hold on Gaza.
CNN's Ben Wedeman is standing by live in Gaza City, where Palestinians are already celebrating the Israeli withdrawal.
But we being with CNN's Guy Raz. He's at the largest Israeli settlement in the area, Neve Dekalim. What's the latest there, Guy?
GUY RAZ, CNN INTERNATIONAL CORRESPONDENT: Wolf, the day passed here largely without incident. A few minor scuffles here and there. At one point, young protestors blocking the main entrance point into this settlement. But in the end, Israeli police and soldiers opted not to enter the settlement and begin handing out eviction notices, preferring rather to wait to the point when the settlement will be evacuated for good.
Meanwhile, the Israeli prime minister, Ariel Sharon, addressing the nation on national television this evening. The prime minister was neither contrite nor regretful. But he did say he understood the anguish and pain of those about to be evicted and evacuated from their homes. Here's what he had to say, Wolf.
(BEGIN VIDEO CLIP)
ARIEL SHARON, ISRAELI PRIME MINISTER (through translator): We are taking this step with great anguish. We wanted to reach settlements with the Palestinians that would help both peoples, but they have smashed on the wall of hostility. Our unilateral disengagement is our response to the situation.
(END VIDEO CLIP)
RAZ: Wolf, the prime minister also sending a message to the Palestinian Authority, saying, "To an outstretched hand we will offer an olive branch."
Now, it's 10:00 p.m. local time here, and many of the residents in Neve Dekalim settlement are going about life as normal. Tomorrow by this time we should know the precise date when this settlement will be evacuated for good.
Wolf?
BLITZER: All right. Guy Raz. We'll be checking back with you as well. Thank you very much.
As the settlers move out, who will move in? There's a Palestinian power struggle looming.
CNN's Ben Wedeman joining us now, live from Gaza City.
Will it be the Palestinian Authority in control, Ben, or will it be Hamas and Islamic Jihad?
BEN WEDEMAN, CNN INTERNATIONAL CORRESPONDENT: Wolf, I think I have lost communications.
BLITZER: All right. Ben Wedeman lost communications with us. We'll fix that. We'll get back to you momentarily.
Ben Wedeman in Gaza. He just missed what I -- what I asked him, but the question will be coming back.
We want to hear from you about all of our major stories that we're covering today, every day. We call it the "Cafferty File." CNN's Jack Cafferty has a different question each hour. He's joining us live from New York with his question for this hour.
Jack?
JACK CAFFERTY, CNN ANCHOR: Wolf, happy Monday. Whether or not the current draft of the Iraqi constitution passes, it is looking more and more like the Iraqis will end up being some kind of Islamic state. One of the sticking points in getting this version drafted has been the Shiite demands for a bigger role for Islam in the eventual final version of Iraqi law. As Western officials are saying, the constitution also will support Islam's Sharia law which places strict limitations on the role of women. That's hardly democratic, now is it?
The United States has lost 1,800 young people over there, thousands more wounded. We spent $300 billion on the wars in Iraq and Afghanistan. Here's the question: Is fighting for democracy in Iraq worth it if Iraqis end up with an Islamic state at the end of the day?
CAFFERTYFILE@CNN.com. I will read some of the letters a bit later.
BLITZER: All right, Jack. Good question. We will get some of those responses throughout this hour. Appreciate it very much.
I want to show our viewers a live picture coming into THE SITUATION ROOM right now from Baghdad. You are looking live at the Iraqi parliament. They are about to convene, get into session, to make some major decisions on this draft constitution.
Can it be completed within the next hour? The deadline coming up, 4:00 p.m. Eastern. That would be midnight in Baghdad. They are working late into the night right now, and we will be watching every step of the way.
Still to come, a mysterious plane crash, a catastrophic loss of cabin pressure before a 737 goes down, and reports that the bodies of everyone on board were frozen solid. We'll have a closer look at the investigation.
Plus, airline security. A proposal to ease restrictions and let small knives on planes. Mary Snow is working that story.
And a little bit later, Arnold Schwarzenegger. Did a tabloid pay a woman to keep her silence until after his election as governor of California? We're taking a closer look.
(COMMERCIAL BREAK)
BLITZER: Welcome back.
I want to show our viewers some live pictures, what's happening in Baghdad right now. The Iraqi National Assembly -- you're looking at these live pictures -- they're convening. There's less than an hour for them to accept a draft constitution that will set the stage for the next step in the political process in Iraq, but there are still key issues that have not been resolved. We'll be checking in to see what's going on throughout this hour and the hours to come.
Let's move on to another big story we're following, an eerie twist to that passenger plane crash in Greece only yesterday. Officials are now looking at the possibility that the 121 people on board were already dead when the plane slammed into a mountainside near Athens.
CNN's Chris Burns is in the Greek capital. He's joining us now live via videophone with the latest. Chris, what's going on?
CHRIS BURNS, CNN CORRESPONDENT: Well, Wolf, that is really the question that the government spokesman posed last night, saying that perhaps they might all have been dead. It is, of course, a theory. And that is why the autopsies are going to be so very important.
That's what's been happening today, is the bodies have been taken to a makeshift morgue from that crash site and then taken on to a hospital. Families, grieving families, outraged families demanding answers have been brought there from Cyprus to identify their loved ones. Those that are not identified, the authorities will use DNA and other means to identify them. But the bodies themselves are part of this investigation, as well as, of course, parts of the plane.
And they have found both the black boxes, the voice and data recorders. Authorities do say that the voice recorder was so badly damaged they might not get any information from that, that is of great use.
Now, there is a team of Americans coming from Boeing. It was a Boeing 737 that crashed. And they are going to be offering their expertise in this investigation.
Of course Helios is the -- is the carrier from Cyprus. They are insisting that plane was airworthy, but there are a lot of questions about that.
Wolf?
BLITZER: There are also a lot of questions, Chris, about this report. And we and other news organizations over the past 24 hours reporting it extensively, that a passenger on board managed to send a text message to his cousin saying the pilot had turned blue, they were all freezing, and basically saying good-bye. Now there are questions being raised by Greek authorities about the authenticity of this claim by this individual.
What is going on, on this front?
BURNS: Well, Wolf, it could be that we are all victims of a hoax.
This was information that was passed on to state television in Greece that we all picked up.
It was the story of somebody who said that one of his relatives had sent him that text message. Now we are hearing news reports here in Greece saying that it was a hoax, that this man was making it all up. Of course that duping quite a bit of investigators that perhaps could have used that as evidence. In fact, authorities are still, however, looking at this theory that there was a dramatic loss of cabin pressure, of oxygen, that incapacitated both pilots and incapacitated, perhaps, many, if not most, of those inside the plane as well.
BLITZER: All right. Chris Burns. We'll be checking back with you. Thanks very much.
Our Brian Todd and our Mary Snow are both working on stories you will be seeing later here on THE SITUATION ROOM. Let's check in with them for an update on what they're finding.
Brian Todd is here in Washington. Brian, what are you working on?
BRIAN TODD, CNN CORRESPONDENT: Wolf, we spoke to a former managing director of the National Transportation Safety Board who says that the catastrophic loss of air pressure, which as Chris just reported, is a very likely indication here. This expert is going to tell us what happens inside a plane when a plane loses pressure that badly.
And ironically, this gentleman also lead the NTSB's investigation of the 1999 crash which killed golfer Payne Stewart, and he says there are eerie similarities in this crash. We're going to tell you what he says.
Wolf?
BLITZER: All right. Brian Todd. We'll be watching that report.
Mary Snow's also working on an important story for us in our CNN "Security Watch." Mary, what are you working on?
MARY SNOW, CNN CORRESPONDENT: Well, Wolf, we're taking a look at a controversial idea by the Transportation Security Administration. The TSA is questioning whether to lift the ban on some items that are now prohibited on airlines because of security reasons, things like scissors, knives, that are under five inches.
Also, the TSA is taking a look at whether it should not require people to remove their shoes and exempt certain categories of people from the screening process.
Some security experts are applauding this move, others say that they don't like it. This is all just an idea at this point. We'll take a look at the plan and reaction to it at 5:00.
Wolf?
BLITZER: All right. I expect the reaction is going to be intense. Zain -- thanks very much, Mary Snow.
Zain Verjee is following a developing story in Pontiac, Michigan. Zain, what are you hearing?
ZAIN VERJEE, CNN ANCHOR: Wolf, we want to show you now some taped pictures we received just moments ago. These are helicopter pictures over Pontiac, Michigan.
Now, this is near Detroit. You see there are two police officers, two security officials breaking down a door in this image that we're receiving.
According to two CNN affiliates, Wolf, four men have escaped from a courtroom in Pontiac, Michigan. Police say they got away from the 50th District Court in Pontiac.
Police also say that they have managed to get one or two of the culprits, but the others are still on the loose. It's not really clear what charges these men were facing. All we know, according to authorities, that one man had a gray shirt on and another had an orange jumpsuit. It appears now they managed to break that door just moments ago, and perhaps a S.W.A.T. team has gone in.
Remember, these are not live pictures, Wolf. We just received this moments ago. A search for those men on the loose is still under way.
We'll bring you more details when we get them.
Wolf?
BLITZER: Zain Verjee. We'll be checking back with you. Thanks very much.
Still to come here in THE SITUATION ROOM, the bottom line. CNN's Ali Velshi keeping an eye on the soaring price of gasoline, which hit an average of $2.50 a gallon over the weekend.
And a little bit later, a new cook in the kitchen. A woman takes over at the White House for the first time ever.
Also, hit the streets with American soldiers on patrol and under pressure. We will see the war through their eyes.
You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: We have an important development happening in Baghdad right now. Let's bring back CNN's Aneesh Raman. He's joining us with late word on a potentially significant development.
What has happened, Aneesh?
RAMAN: Wolf, we've just gotten word from a Sunni negotiator involved in all this that the National Assembly will be seeking shortly a seven-to-10-day extension in this process. They had been delaying their meeting for quite sometime. In the past hour, they began entering into the hall. The U.S. ambassador to Iraq, Zalmay Khalilzad, included among those sitting in the room right now.
And we are getting word again that the Iraqi National Assembly will seek a seven-to-10-day extension to try and hash out the remaining issues that face them in attempting to draft a constitution.
Wolf? BLITZER: Aneesh, based on the earlier elections, and their structure that they worked out, they could seek as long as a six-month extension if they wanted. But there are consequences for not meeting tonight's deadline. What are the consequences? How do they get that seven-to-10-day extension?
RAMAN: Well, they have to essentially amend the transitional law that is the authority of Iraq right now. They had until August 1, by that same law, to seek an extension up to six months. Under intense U.S. pressure, they chose not to do that, and instead sought to seek a constitution by today's date.
Instead now, incapable of doing that, the Iraqi political parties now opting to essentially amend that law, change the deadline, if you will, midway through this process and extend it by a matter of days. Whether they will be able to reach compromise in seven days if they weren't able to up until now, now becomes the question -- Wolf.
BLITZER: Yesterday I interviewed Zalmay Khalilzad, the U.S. ambassador to Iraq, and he was very firm. He said he had received assurances across the board that this deadline, which is now a little more than a half an hour away, would be met successfully. And the U.S., as you know, and our viewers know, was pressing very, very hard to meet tonight's deadline.
How much of a setback is this for U.S. strategy, U.S. policy in Iraq?
RAMAN: Well, they had long sought, this Iraqi transitional government, to stick to the timeline as a means to perhaps curbing the insurgency and establishing stability in Iraq. The U.S. has also been very keen to say that consensus and compromise, as Defense Secretary Donald Rumsfeld said in Iraq, is essential to democracy, and it won't be any easier sometime from now.
This, obviously, though, does undercut the notion that Iraq is on a political timeframe that is running, that is operational, and a consensus is being built by these various entities, Wolf.
This is an enormously politically complex situation. Each of these groups has volatile histories, reason to both trust and distrust each other. And as they go forward in this process, everyone is trying to make sure that they do not concede too much, that they do not demand too little. And all of the time we see in Iraq, Wolf, in terms of the politics, it goes down to this eleventh hour, people incapable of budging on what they see as seminal points, and in a document that they see as having a permanent legacy.
Wolf?
BLITZER: And as we see the speaker of the Iraqi National Assembly convene this session, presumably to move forward with this seven-to- 10-day extension, remind our viewers -- I assume the two key issues that remain unresolved are the most contentious issues. One, namely, the role of Islam in any new government, the impact that would have on women's rights, human rights down the board. The second, the nature of autonomous regions in the north and the south.
RAMAN: Yes, exactly. Federalism had long been thought to be not a huge issue. The Kurds had it in the north, they were set to keep it for them. That was non-negotiable.
But in the days leading up to the deadline, Shia leaders, Abdelaziz al-Hakim, the head of SCIRI, a religious Shia organization in the city of Najaf, called for a similar situation for the Shias in the southern area, where they have the majority population.
For the Sunnis, immediate objection. Not only did they see this as something that would weaken the central government, Wolf, but the majority of oil in Iraq is in the north and in the south. And if you have strong provincial governments there, the question of the where the oil revenue would go was something that couldn't be resolved, it seems, up until today.
And, of course, the issue of Islam, would it be a source or the source? And how specific would the language be about whether Iraqi laws could be in contradiction with Islam? And if they could not, who would decide that?
Those were disturbing questions, especially for women's rights groups.
Wolf?
BLITZER: The whole notion, though, of this delay. The Kurds and the Shia who represent the overwhelming majority of this National Assembly, most of the National Assembly, because the Iraqi Sunnis did not participate in the January 30 elections, by and large, they could have pushed through whatever they wanted. But I guess the pressure, especially from the U.S. and the West, to not ignore the Iraqi Sunnis has resulted in this crisis and this seven-to-10-day extension.
RAMAN: Exactly, Wolf. They have more than 50 percent, which is all you need in the National Assembly to approve the draft constitution.
But remember this. This constitution will go to a public referendum by mid-October. In that referendum, if two-thirds of the people in three provinces reject the constitutional referendum, it fails nationwide. And the Sunnis have that, the Kurds have that, the Shia have that. All three of them essentially have veto power over this constitution when it goes to the public.
So while it could have fixed the situation now and kept this process going, it could have just led to a bigger issue down the line.
Wolf?
BLITZER: One more question before I let you go. How are the average Iraqi people going to respond to this -- this, what clearly must be some sort of embarrassment, the fact that they couldn't reach a draft constitution after all this time? RAMAN: Well, there will be among those who are following the process. But for a lot of Iraqis, Wolf, there is a disconnect between the political universe and between their real life, where security, basic services like water and electricity, still remain the prevalent concern.
Among some Iraqis, this will come as no surprise. They don't see this as a government that is known for compromise. They see these political leaders as out to fend for their political groups. So it will be, among the Iraqis who have been following it, which in our encounters have been relatively few. It will come, perhaps, as a lack in confidence now at the process. But for the majority of Iraqis, Wolf, it's about daily life, and they want that to be fixed, first.
BLITZER: All right. Aneesh Raman, reporting for us from Baghdad. We'll be checking back with you, clearly, throughout this broadcast.
Let's get some expert analysis on what's going on right now. Just as the president has a National Security Council, here in THE SITUATION ROOM we can call on our own circle of top former officials in our security council. And joining us today, two guests.
Wendy Sherman was the chief troubleshooter for two secretaries of State. She's now with the Albright Group here in Washington.
And Danielle Pletka, who's a senior staffer for the Senate Foreign Relations Committee.
Ladies, thanks very much for joining us.
We have this breaking news. Very significant, Danielle. Let me start with you.
The fact that the Iraqi National Assembly now, they couldn't come up with a draft constitution, they are deadlocked over two key issues, the role of Islam in that constitution, and the semiautonomous states that the Kurds and the Shia want in the north and the south respectively. How much of a setback do you suspect this might be?
DANIELLE PLETKA, AMERICAN ENTERPRISE INST.: I think it's going to be spun as a setback, Wolf, but I don't think it is one. I think it's very important for us to understand that a constitution isn't a throwaway document.
The fact that United States has put so much pressure on the Iraqis is a little bit unfair. And I think the deadline has been, in some ways, unnecessarily artificial.
If they need more time to work out important issues, then they should take more time to work out important issues. I am very happy that they haven't come to shots, they haven't come to blows, they haven't walked away. What they need is the time to work this out, and they should take it.
BLITZER: But you know that Secretary of State Condoleezza Rice, the U.S. ambassador, Zalmay Khalilzad, and others were all very, very forceful in saying you must meet this deadline.
PLETKA: I know that they were and I understand why they were. I think the Iraqis need to feel the pressure. I think that only the looming deadline forces them to make hard decisions. But there are going to be instances where the decisions are too hard, where they need extra time, and where when they say, "We need an extra day or an extra hour," they should be allowed to have that.
This is a country we're talking about, not somebody's homework.
BLITZER: On the surface, Wendy, this should not necessarily be all that big a deal, seven to 10 days. They've waited this long for a constitution, for democracy. And historic analogies have been made it took the United States a lot longer to come up with a constitution after our revolution. So why is this a big deal, if it is a big deal, in your mind?
WENDY SHERMAN, ALBRIGHT GROUP: Well, I think it is a big deal for a couple of reasons. We all want the constitution to happen. We want it to happen in a constructive and a solid way that makes sure there's not civil war in Iraq. So if it takes seven to 10 days, I can understand that. But we have here is a potential slippery slope to civil war, and that is a very dangerous situation.
And I agree with Dani (ph). Some of the pressure was put on to try to create a deadline, to try to create a bookend, to force a decision. But that pressure was also put on because the administrative law, the Transitional Administrative Law that's currently in place, requires this deadline. And so there are going to have to be changes to allow for this extension. And those changes create a potential slippery slope to civil war, and that is a very dangerous situation -- very dangerous not only for the president of the United States, but more importantly, for the Iraqi people.
BLITZER: Hold on one second, Danielle.
You say it's a dangerous trend towards potentially a civil war. Others fear that what's at stake here is the nature of Iraq -- will it be a secular democracy or will it be another Islamic republic?
SHERMAN: There is no question. The two issues that seem to have kept them from coming to closure, self-determination, whether in fact there were going to be in essence autonomous states and Iraq would disappear, and the role and rights of women, and whether Sharia law in a strict constructionist way would be applied are very critical issues and important issues.
We want Iraq to stay together as a country. And we want to make sure that having fought for democracy, that women have rights. So these are very critical issues.
At the same time, we have heard from many Iraqis themselves that if they cannot come to closure on these, if the seven to 10 days goes to a month, to two months, to three months, we may start down a slippery slope to civil war.
BLITZER: All right. I want Danielle to respond to that, but we have to take a quick, quick break.
We're going to continue our coverage of this breaking news, breaking news out of Iraq. If you have been watching CNN over the past few minutes, you know the Iraqis want a seven-to-10-day extension on their effort to come up with a draft constitution.
We're also following news out of Gaza as settlers are forced out as part of Israel's historic pullout.
We'll get bloggers' take on what's life like in Gaza right now for Israelis and Palestinians.
Plus, airlines going bust. Our Ali Velshi will tell us which carrier is on the brink of bankruptcy -- yes, another one on the brink of bankruptcy -- and what that means for all of us, especially those of you who are interested, your frequent flier miles.
You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: Welcome back.
You're in THE SITUATION ROOM.
And joining us once again, Danielle Pletka, Wendy Sherman.
We're talking about the new Iraq and the breaking news that we're getting in just in the past few minutes. Got some live pictures coming in, the speaker of the National Assembly in Baghdad.
It's been now reported and CNN has confirmed that the Iraqis are seeking a seven to 10 day extension in trying to come up with a draft constitution. The deadline was less than a half hour or so from now, but now they need at least another seven to 10 days and perhaps more.
Let me read you to what former U.S. Ambassador Peter Galbraith, Danielle, wrote recently in "The New York Review of Books" and get your response to some of the key issues affecting Iraq right now.
He writes this: "It may be the ultimate irony that the United States, which among other reasons, invaded Iraq to help bring liberal democracy to the Middle East, will play a decisive role in establishing its second Shiite Islamic state."
The first being Iran. How concerned are you about that possibility?
PLETKA: Well, with all due respect to Peter, who is an old friend and a former colleague on the Foreign Relations Committee, I don't think that's right.
I think that there is respect for Islam in Iraq. I think that, that was squashed, in many ways, by Saddam Hussein. There is no question that it is a conservative Islamic state. But I don't think at the end of the day that what we're going to see is a decisive role for Islam in the country.
The real issues that are being fought out right now aren't about whether Sharia, Islamic law should be the law of the land. What's being fought out is, for example, family law, women's law. These are very, very important things.
I think that the Iraqis will come down on the right side, but at the end of the day it's going to be more like Afghanistan. Islam will be a source for lawmaking; it will not be the source for lawmaking. And I think that that's something that we have to accept. If you want democracy, in for a dime, in for a dollar, we have to understand that democracies are going to look different.
BLITZER: And if the people want to elect some form of Sharia law becoming the law of the land in Iraq, should the U.S. necessarily accept that?
SHERMAN: I think that we indeed have to make sure that democracy has some basic tenets and values, but in fact, in many countries in the world democracy doesn't look like American democracy.
What we're interested in is liberal democracy, where rights are respected, where there is a rule of law.
I think your main question, though, about the influence of Iran is a very important one. "Time" magazine has an article out this week, a story about how Iran is behind many of the incendiary explosive devices that are being set off in Iraq right now.
And I think we do have to pay very strict attention to this and make sure that the democracy that we hope -- we all hope -- blooms in Iraq is not the kind of democracy in Iran.
BLITZER: And these are live pictures we're getting in right now from Baghdad, from the national assembly. They are voting right now on this proposal to extend the negotiations for this draft constitution for another seven to 10 days. We'll continue to show our viewers this live picture.
But I also want to show our viewers another picture, Danielle, this picture, very disturbing. The other day, August 5, a picture of the new prime minister of Iraq, Ibrahim al-Jafaari meeting with Muqtada al-Sadr.
Now, I want to show our viewers this picture. This was -- Muqtada al-Sadr, as you well know, just a little bit more than a year ago was one of the most wanted men in Iraq. Ricardo Sanchez, the U.S. general in command, said he was wanted dead or alive. He has blood on his hands. And as the U.S. ambassador to Iraq, Zalmay Khalilzad, told me only yesterday, there's still a warrant out for his arrest.
But now the prime minister is meeting with this radical Shiite cleric. How do you explain that?
PLETKA: Well, I think that what happened last year was that Muqtada al-Sadr was persuaded to abandon his incendiary speeches, to abandon his military wing and to become part of the political process. It's been a great surprise to me that he has actually stuck with those agreements. He has not turned and brandished a military option or an insurgency option -- that he is inside working within the government.
I am not a big fan of Muqtada al-Sadr at all, but we're not running Iraq. And if Jafaari, who was elected by the Iraqi people, can sit down and keep this man inside the fold, behaving properly, not using violence -- and I mean absolutely zero tolerance here -- not using violence, then he can be part of the Iraqi political system. That's where you draw the red line.
BLITZER: Hold on one second. I want to bring back Aneesh Raman in Baghdad.
Aneesh, we saw the hands go up. Clearly some sort of vote occurred. Tell our viewers what you've learned.
RAMAN: Yes, Wolf. Hajim al-Hassani, the speaker of Iraq's National Assembly, calling for a vote on this extension. It has, it seems, passed. The hands raised, those supporting what seems to now be an inevitability -- that compromise cannot be reached tonight and that they now have to embark on this process anew and attempt to have a draft constitution in the coming days.
The Presidency Council has been called to meet by the speaker, Iraq's President Jalal Talabani and his two vice presidents will now determine how this will go forward as Iraq charts essentially new territory to meet the political reality on the ground. The compromise could not be met today, Wolf.
BLITZER: And we'll see what happens over the next seven to 10 days.
CNN's Aneesh Raman reporting for us.
I want to thank both of our guests here in CNN SITUATION ROOM. Wendy Sherman, as usual, thanks to you. Danielle Pletka, a good discussion, good useful information for our viewers.
Much more coming up here in THE SITUATION ROOM.
We'll take a quick break. We'll be right back.
(COMMERCIAL BREAK)
BLITZER: These are some pictures we are getting in from the Associated Press, some still photos likely to be on your hometown newspapers tomorrow. We are watching all of this information coming into THE SITUATION ROOM.
We have been following a breaking news story. Over the past 20 minutes or so, half hour, the Iraqi National Assembly, the parliament there, deciding they can't meet the deadline that had been scheduled for 4:00 p.m. Eastern, midnight Baghdad time.
Instead they voted -- and you see those hands going up. They voted to give themselves a seven-to-10-day extension, to try to formulate a new draft of a new constitution.
Two sticking points. The role of Islam in the new constitution -- will it be the source of law of the land or will it be a source, and all of the ramifications that would have for human rights, for women's right in Iraq.
The other key issue the nature of autonomous regions for the Kurds in the north, the Shia in the south. These are very, very critical sticking points. We will see how the Iraqi Sunnis, the minority, are reacting to all of this. We are following this story for you, our viewers.
Let's also get a quick check on some other stories we're following. CNN's Zain Verjee joining us from the CNN Center with more on that. Hi, Zain.
VERJEE: Hi, Wolf. Thanks a lot. Three more weeks -- that's how long Cindy Sheehan says she will camp out near President Bush's ranch in Crawford, Texas. Her son died in Iraq last year.
Recently she's been seeking a meeting with the president to talk about ending the war in Iraq. We're going to bring you more from Crawford in a live report next hour.
Right now in Washington, lawmakers poring over more than 5,000 of documents involving Supreme Court nominee John Roberts. The papers released this morning are from his days as associate counsel to President Ronald Reagan. They cover subjects like abortion, school prayer and war powers of the president.
After 15,000 deaths and three decades of fighting, peace is probably at hand in Banda Aceh, Indonesia. Today in Finland, the Indonesian government and Aceh rebels signed an agreement to quell their conflicts to end hostilities immediately. The province was hard hit in December's devastating tsunami and today's deal will smooth the delivery of aid.
The World Food Program is thanking the U.S. for a sizable donation to its operations in South Africa, while warning that an additional $212 million is needed. The U.S. has contributed almost $52 million to the United Nations agency. The money is going to help feed 8 million people in countries like Lesotho, Mozambique and Zimbabwe. Southern Africa has recently suffered a long drought which has destroyed much of this year's crop. Wolf?
BLITZER: Zain, what finally resulted in this deal in Aceh? It's been so many years missing. They finally did it, what happened?
VERJEE: Well, the rebels finally said look, you know, we're not going to have full independence, and OK, we'll do (ph) some. So that really quite critical. What they did get though was a degree of autonomy, so they will be able to pass their own laws, they'll collect some taxes, they'll have their own flag, they'll have a share of the country's oil and natural gas resources. And the Indonesian government agreed to cut its troops in the region. Interestingly enough, also Wolf, experts say that it was actually the tsunami also that was a triggering factor to the peace process. They said that aid workers were coming in -- you know, about 130,000 people were killed in Aceh, and the aid workers just needed to function. The fighting just had to end and there was a lot of pressure from the European Union and the United States to end the fighting. And that's what happened, so it's -- hopefully people say a bright future now for Aceh.
BLITZER: That's all (ph). Thanks very much, Zain, we will be getting back to you. It's August 15th and coming up in Iraq, the deadline was supposed to be in about 15 minutes, now officials now extending that deadline for a new constitution. We'll go back live to Iraq for the latest.
And there's much at stake in that country as it works toward democracy. We've been taking your thoughts on the possible outcome, Jack Cafferty standing by alone with your e-mail.
Higher ticket prices and delayed flights -- airline passengers already have to deal with those. Now there may be new woes for the well-traveled weary. We will be right back.
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BLITZER: The Iraqi National Assembly just voted unanimously to give themselves another seven to ten days to wrap up their draft constitution if they can. The deadline had been 4:00 p.m. Eastern, midnight Baghdad time. They couldn't do it. Several key sticking points still remain on the table.
Your e-mails on this hour especially now are coming into THE SITUATION ROOM. Jack Cafferty sorting through them in New York. He is joining us now with the "Cafferty File" which is very relevant to the breaking news, Jack, that we've been reporting on this hour.
CAFFERTY: Indeed it is. You know, democracy in Iraq was probably one of those things, Wolf, that looked good on paper. The problem is, that you go in and throw out Saddam Hussein and those bunch of goons he has running the country, and you put in a nice democracy and everybody lives happily ever after.
The problem is they don't want democracy, at least not the kind of democracy we think of here in the West. And we got evidence of that today when they reached the sticking point on the draft of this constitution over, among other things, the role of Islamic law in that document. It looks like at some point Iraq is going to end up being some kind of an Islamic state. This is not surprising. That's their history.
The question this hour, though: Is fighting for democracy, to the tune of a couple of thousand American lives and 300 billion dollars -- democracy in Iraq -- worth it if the Iraqis end up being an Islamic state? Here's what some of you are writing to me.
Jamie in Bogota, Colombia: "Jack, the U.S. went into Iraq supposedly to create democracy. It would be extremely undemocratic if, at the end of the day, the U.S. tries to prevent the Iraqi people from giving themselves the type of state they want. If Iraqis want an Islamist state with Sharia law" -- which is what limits the role of women rather dramatically -- "then they should have it."
Steve writes, "Of course it isn't worth it, but that was as predictable as tomorrow's sunrise, unless you live in the White House."
Elizabeth in Toronto, Ontario: "No. That must not happen. No religion must be above the law and the Iraqis must be made to understand this." Good luck with that. "Without the separation of church and state, democracy cannot succeed. We will have merely supplanted one evil for another."
And Byron in Hudson, Wisconsin: "Was it worth it? Ask Halliburton." The idea being, they made a few dollars off this thing.
BLITZER: Halliburton is a company that does have a few billion dollars in contracts in Iraq and elsewhere -- Jack.
CAFFERTY: Later in the show, Wolf, you'll be pleased to know, we're going to talk -- you may soon be able to take a bow and arrow on an airplane with you. They are going to relax some of these restrictions. To me, there's nothing more comforting if you're on a long airplane flight than having your bow and arrow along.
BLITZER: Some people need that bow and arrow, no matter where they're going.
CAFFERTY: Absolutely. Yes. The problem, if you happen to have the window seat, it's no good, because then, if the person in the aisle of the middle seat also has a bow and arrow, then you have -- going to the bathroom and stuff, you know, the bows and arrows get tangled. But we'll talk about this some more, and I'm sure you're looking forward to it.
BLITZER: I am looking forward to it, Jacks. Thanks very much. Coming up, are your frequent flyer miles at risk? Our Ali Velshi has "Bottom Line" on Delta and other airlines in crisis. Information you need to know.
And when we go "Inside Politics," the woman in the White House kitchen. How she got the job traditionally held by man; in fact, always held by a man until now.
You're in THE SITUATION ROOM.
BLITZER: It's almost time for the closing bell. Let's check in with CNN's Ali Velshi. He's in New York. He's got the "Bottom Line." What is the "Bottom Line", Ali?
ALI VELSHI, CNN ANCHOR: Well, oil is pulling back a little bit and stocks are liking that a little bit. We have oil closing at $66.27. I think that's the first time since I had hair that oil has actually pulled back. Don't get too excited about this, though. Gas hit record prices. Wolf, you've been hearing about that across the country. In some places in California, over three bucks a gallon for self-serve. But for the moment, a break and markets are enjoying that. So we'll take look at how they close in just a second.
Now, Wolf, you know the CBO came out with its estimate today.
BLITZER: That would be the Congressional Budget Office.
VELSHI: The Congressional Budget Office, which does an estimate of what we're going to end up with, separate from the White House, except that they're within a couple billion dollars of each other. The Congressional Budget Office saying that this fiscal year, we're going to end up with a $331 billion shortfall deficit. In March of last year, they thought it was going to be $365 billion, and the actuals for 2004 were $412 billion. So, by some standards, this is getting a lot better.
The problem is, as some Democrats say, back when George Bush took office in 2001, they were talking about a few hundred million -- few hundred billion dollar surplus, so we've got almost a $750 billion business. So while some would look at this and say that despite oil prices and despite all sorts of things, the economy is surging ahead. Our deficit will be lower. You know, others are not. A half full, half empty thing.
The one piece of news that I take from this, Wolf, is that the CBO, the Congressional Budget Office, and the White House, which prepares its own estimates -- they're in line right now. So I think we're going to end up with something around $330 billion.
BLITZER: But we're still talking about huge budget deficits, as far as the eye can see.
VELSHI: Absolutely. And they've got to keep in mind the idea that we are still paying for Iraq and Afghanistan and all things like that.
Let me tell you a little bit about oil, what's going on with oil. One of the things I wanted to point out, is we are looking at high speculative interest in oil right now.
What does that mean? That means if you look at what speculators are doing in oil -- these are people who buy it to make money on it, not people who are necessarily investing in oil or need oil for something like that -- you have speculative interests saying that oil is going to be above $67 past May. So we're looking at all that stuff right now. We'll see how it affects the airlines.
Wolf?
BLITZER: What about the airlines? Another carrier on the brink of bankruptcy right now.
VELSHI: Any minute now, we should be getting a delayed earnings report, a 10Q filing report from Delta. They were supposed to do this last Tuesday. They've got some problem with a credit card processor of theirs, and that deal expires on August 29, after which they can't take MasterCard and Visa to sell tickets, which clearly is going to be a problem for them. So we'll know in a little while whether Delta is inching closer towards bankruptcy.
Delta and Northwest, both of them in big trouble right now. Northwest has maybe 5,000 mechanics ready to go on strike on Saturday. Lots of airline news. And oil has been -- and gasoline jet fuel, that's been a big problem for the airlines, as well. So these are all the stories that we're looking at right now.
If Delta comes back with a report that says that they're going to take one last stab at it, may have a few weeks. But a lot of analysts, Wolf, are saying that Delta is going to be in trouble within a few weeks.
BLITZER: Very quickly. Frequent flier miles -- frequent flyer miles -- how concerned should our viewers be?
VELSHI: Probably not at all right now. In fact, the last few years, the only thing I've learned as a business journalist is that when an airline goes into bankruptcy, it seems to operate pretty much with business as usual. You'll get enough notice if the frequent flier miles are in danger.
BLITZER: All right, Ali, stand by. Chris Burns is joining us now from Athens. There's been a development in that crash of that airliner yesterday. What are you learning, Chris?
BURNS: Yes, Wolf, we're hearing from the coroner who has looked at the first six bodies in the autopsies in Athens, and he says that from what he can tell, these six people were breathing and alive when the plane crashed. He also denies reports that any of the bodies were frozen. He said that that's impossible in that period of time, that the bodies could have been frozen.
He says the six people who he did autopsy could have been unconscious. Of course, they're talking about in that plane crash that there might have been a catastrophic loss of cabin pressure and oxygen that might have incapacitated not only the pilots, but also many other people inside the plane -- Wolf.
BLITZER: All right, Chris Burns with the latest on that. We'll be checking back with you.
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