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The Situation Room

Could U.S. Troops Start Pulling Out of Iraq?; Giuliani Forms Presidential Exploratory Committee

Aired November 13, 2006 - 19:00   ET

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


WOLF BLITZER, CNN ANCHOR: Thanks very much, Lou. And to our viewers, you're in THE SITUATION ROOM where new pictures and information are arriving all the time. Standing by CNN reporters across the United States and around the world to bring you tonight's top stories.
Happening now, the search for a way out of Iraq, could U.S. troops start pulling out in only four months? And could Iran, yes Iran, be asked to help stop the violence?

They're off and running. Republican Rudy Giuliani takes a major step toward a White House bid and Senator John McCain apparently won't be far behind. The midterms are barely over, let the 2008 games begin.

And Senator Joe Lieberman exerts his independence. Could he, would he single handedly change the balance of power in the Senate?

I'm Wolf Blitzer. You're in THE SITUATION ROOM.

The message from voters was totally clear but finding a solution to America's Iraq problem still may be difficult, divisive and even dangerous. Tonight a Democratic plan to start pulling troops out in four to six months is clearly on the table.

Another idea raising eyebrows and fears, there are calls tonight to get Iran's anti-American government involved in trying to find an Iraq solution, along with another U.S. nemesis, that would be Syria. A bipartisan blue ribbon panel now is weighing all the options and working to hammer out a new way forward in Iraq.

The panel's leaders got some input today from the commander in chief. CNN's Brian Todd is looking into the Iran/Syria scenarios. Let's go to the White House, our Suzanne Malveaux is standing by with the latest -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well Wolf, or course President Bush is really under a great deal of pressure to prove that he really is open to these fresh ideas that he's been talking about regarding Iraq, so today, meeting with the Iraq study group was certainly a part of that.

(BEGIN VIDEOTAPE)

MALVEAUX (voice-over): With the American public's anger over the lack of progress in Iraq, now at a boiling point. President Bush met with the bipartisan commission charged with finding solutions.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I was pleased to meet with them. I was impressed by the quality of the -- of their membership. I was impressed by the questions they asked. They're -- they want us to succeed in Iraq, just like I want to succeed.

MALVEAUX: The Iraq study group led by former Secretary of State James Baker and former Democratic Congressman Lee Hamilton is widely viewed as Mr. Bush's last chance to find a face-saving way to address the failures in Iraq.

BUSH: I'm looking forward to interesting ideas.

MALVEAUX: The White House and panel members are reluctant to talk about any specific ideas yet.

BUSH: I'm not going to pre-judge the Baker Commission's report.

MALVEAUX: But there are broad recommendations that are being debated. One controversial one is withdrawing U.S. troops in phases, to get the Iraqis to step up and take more responsibility. It's a measure that has some political support from both sides of the aisle, but President Bush is unwilling to sign off on anything yet.

BUSH: I believe it is very important, though, for people making suggestions to recognize that the best military options depend upon the conditions on the ground.

MALVEAUX: Another controversial measure calls for the U.S. to reach out to Syria and Iran, to use their regional influence to calm the situation in Iraq, but President Bush sidestepped a question as to whether that's a possibility. The Bush administration is cautious that new diplomatic efforts could send the wrong message. Some policy experts disagree.

RICHARD HAASS, COUNCIL ON FOREIGN RELATIONS: Engagement is not reward. Diplomacy is not a favor. We have a real problem in Iraq. Clearly the alternatives are not looking good. Talking to these neighboring countries makes sense.

MALVEAUX: There are indications that immediately withdrawing American troops or partitioning Iraq along ethnic lines have been largely rejected by the Iraq study group, while other recommendations have appeared to gain overall support such as holding an international peace conference, pressuring the Iraqi government to reconcile civil differences, and beefing up training of Iraqi security forces.

(END VIDEOTAPE)

MALVEAUX: And Wolf, there's a realization here that, whatever the recommendations, the White House and the panel end up agreeing on that really the future of Iraq is largely out of the Bush administration's hands, and really depends what happens on the ground there. Wolf?

BLITZER: And we're bracing for those Iraq study group recommendations next month, presumably before Christmas, Suzanne, thank you very much for that.

Meanwhile, should the solution in Iraq involve people whom some think are part of the actual problem? Perhaps, says the British Prime Minister Tony Blair. Let's bring in Brian Todd. He's watching this part of the story -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, another indication that President Bush and his closest allies have reached a crossroads with Iraq, in London, Tony Blair lays out a bold, new idea to change the course of this war.

(BEGIN VIDEOTAPE)

TODD (voice-over): With mounting casualties on the battlefield and a changing political balance in Washington, George Bush's closest international ally throws out an idea to turn the tide in Iraq, turn to your antagonists.

TONY BLAIR, BRITISH PRIME MINISTER: We offer Iran a clear strategic choice, they help the Middle East peace process, not hinder it, they stop supporting terrorism in Lebanon or Iraq. In that case, a new partnership is possible.

TODD: Tony Blair hints a similar deal can be struck with Syria but the president seems to maintain his tough line, saying if Syria wants to talk, it should stop harboring extremists and get out of Lebanon for good. As for Iran...

BUSH: If the Iranians want to have a dialogue with us, we have shown them a way forward, and that is for them to verifiably suspend their enrichment activities.

TODD: Iranian and Syrian officials say their governments want to help.

IMAD MOUSTAPHA, SYRIAN AMBASSADOR TO U.S.: We are concerned about the possibility that Iraq might spiral down to a civil war.

TODD: But it's widely held that much of the violence in Iraq can be traced to Iran and Syria.

SIMON HENDERSON, WASHINGTON INST. FOR NEAR EAST POLICY: The Iranians by supporting the hard-line Shia militias and the Syrians by allowing Syrian territory to be the route in for the jihadists and foreign fighters.

TODD: Both governments deny that. Those who favor negotiations say the violence in Iraq attributed to those two countries is the reason to reach out.

RICHARD MURPHY, FORMER U.S. AMB. TO SYRIA: When the relationships are bad with the United States, they have no interest in helping us stabilize the situation in Iraq.

(END VIDEOTAPE) TODD: There would be a price tag for engagement. Analysts say if Iran was recruited to curb Shia violence in Iraq, Tehran would want the U.S. to stop trying to cut off its nuclear program. Syria, they say, might want more influence in Lebanon, something the U.S. and its allies have just pressured Damascus to give up -- Wolf.

BLITZER: Who would have thought only months ago the U.S. would be looking to Iran and Syria for potential help in Iraq. Brian, thanks very much for that.

So what's the best way for the United States to move forward in Iraq and did it really cost Republicans the election? I spoke about that and more with the outgoing chairman of the Senate Armed Services Committee, Republican John Warner of Virginia. Listen to this.

(BEGIN VIDEOTAPE)

BLITZER: You caused a lot of stir by suggesting, you know what? It's time to rethink this whole strategy. If the White House would have listened to you then, because they were angry at you, as you well know, do you think it would have made a difference especially in your state of Virginia?

SEN. JOHN WARNER (R), VIRGINIA: I wouldn't want to try and translate that important step that I made and statement I made into politics. I viewed my responsibility as chairman of the Armed Services Committee my first responsibility is towards my nation, not politics, and particularly the men and women of the armed forces and their families, who, unfortunately, are dying, and are continuing to be wounded. So that was what is in my mind, when I made this statement, and I think it has energized a great deal of thinking throughout the administration, not that it wasn't going on...

BLITZER: But you know, Senator -- excuse me for interrupting -- that a lot of Republicans, including Newt Gingrich, the former Speaker of the House, say that if the president would have done before the election what he did the day after, namely dumped Donald Rumsfeld, his defense secretary, and signal he was willing to do what you were calling for, come up with the new approach and new strategy, could have made a huge difference in Virginia, where Jim Webb won by what, about 7,000 votes out of 2.5 million cast.

WARNER: Well, Wolf, I've been through five elections myself as senator, and many others prior thereto, working for candidates. There are a lot of factors that go into that final vote, and so you cannot put, I don't think, any greater emphasis on one than the other, and really, that answer, as to whether or not it would have affected an individual is best answered by those three individuals who lost my dear friend, George Allen, and Chafee, and indeed Conrad Burns. They would be best able to answer that question.

BLITZER: A lot of the so-called pundits say that Jim Webb didn't really win as much as George Allen lost the election in Virginia with his macaca statement, some of the other blunders. What do you think?

WARNER: Well, I worked with George through much of that campaign, stood by his side, certainly in the last 10 days, two-weeks of it, was always available, but that was when he really brought me in. I did my best to see that he was reelected, a fine man. Jim web was actually a Marine Corps aide to me when I was undersecretary, secretary of the Navy. So after 35 years, we're now too two-old Marine captain, I'm the older one, he's the younger one, reunited to work on behalf of the men and women of the armed forces.

BLITZER: And the people of Virginia as well.

WARNER: Oh, yes...

BLITZER: Don't forget about those Virginians. Senator, thanks for coming in.

WARNER: Thank you.

(END VIDEOTAPE)

BLITZER: Let's go to Jack Cafferty in New York. Jack, who would have thought that one word, macaca, would not only have cost the Republicans the Senate election in Virginia but the majority in the U.S. Senate, one word, macaca.

JACK CAFFERTY, CNN ANCHOR: Well, I think that's an oversimplification. There was a TV commercial that he ran down there saying vote for me on the issues as opposed to my character which didn't ring very well with people. There was a whole thing about his Jewish heritage that he claims his mother never had told him about his whole life. I mean it wasn't just macaca, allegations using the 'N' word at some point in his past which he denied of course and just the anger.

I mean he had that Republican label and the voters lashed out at the Republicans, didn't matter who they were. Washington -- you may not have heard this, Wolf, that they have a big problem down there with pork. The number of special interest earmarks stuffed into appropriations bills has tripled in the last decade.

More than 16,000 of them last year at a price tag of more than $50 billion. And what's worse is that congressmen who sponsor these things can do so without their names ever being attached to them. That could change tough. "USA Today" reports today that when House Democratic Leader Nancy Pelosi takes over as Speaker of the House next month, one of her first orders of business is going to be a vote on identifying the sponsors of these pork projects.

Republicans have promised to make that change earlier this year, but of course, they didn't get around to it. So here's the question, will identifying the sponsors of congressional earmarks help to curb spending? E-mail your thoughts to CaffertyFile@CNN.com or go to CNN.com/CaffertyFile -- Wolf.

BLITZER: Thanks, Jack, for that.

And coming up, does the man known as America's mayor now want to become America's president? There are new developments tonight involving Rudy Giuliani.

Also the power of independence, a senator whose political future was very much in peril only a few months ago may now actually hold the balance of the power in the Senate in his own hands.

And with privilege comes punch lines. A look at who stands to gain from leader Nancy Pelosi's rise to speaker.

Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: The dust is still swirling from the midterm election but there are tonight new significant developments in the 2008 race for the White House. The former Republican mayor of New York, Rudy Giuliani, is now taking the first critical step toward a potential presidential bid, and another leading Republican, John McCain, is about to do the exact same thing. An adviser to the Arizona senator tells CNN McCain will open a presidential exploratory committee this week.

CNN's Mary Snow is following the first hints of a Rudy Giuliani campaign. She's joining us live from New York. Mary?

MARY SNOW, CNN CORRESPONDENT: Wolf, Rudy Giuliani is now officially testing the waters for a possible presidential run in 2008. As for a firm answer about whether he'll run, he says not yet.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: America's mayor, Rudy Giuliani.

SNOW (voice-over): Word that he's filed legal papers to form a presidential exploratory committee came just one day after former New York City Mayor Rudy Giuliani told reporters in Pennsylvania that he wasn't sure when he'll announce whether he'll seek the Republican nomination in 2008.

RUDY GIULIANI (R), FORMER NEW YORK MAYOR: It certainly won't be right now or in the near future, but it'll be sometime next year, whether it's early next year or more in the middle, I can't tell you that yet, but I will be thinking about it quite a bit.

SNOW: Political observers say Giuliani lacks both the money and organizational arenas as compared to Senator John McCain and Massachusetts Governor Mitt Romney, but Giuliani biographer Fred Siegel says don't expect Giuliani to follow the political playbook.

FRED SIEGEL, AUTHOR, "THE PRINCE OF THE CITY": Giuliani wasn't a conventional mayor. He's not a conventional candidate. He's using a consulting firm both to make money for himself and to lay the groundwork for a national campaign.

SNOW: That consulting firm is Giuliani Partners, includes security consulting and investment banking business. Observers say it's helped him network. NATHAN VARDI, "FORBES" MAGAZINE: It just allowed him to get out and be involved around the nation, and I think that will help him, if he does decide to run.

SNOW: But can Giuliani cash in on his popularity? He currently leads a recent CNN poll of potential Republican White House contenders. Some strategists point out that polls and primaries are two very different animals. And Giuliani's moderate stance on social issues will be put to the test.

SCOTT REED, REPUBLICAN STRATEGIST: His positions on being pro- abortion, being pro-gay marriage, and being against Second Amendment gun rights are a real stick in the eye to most social conservative voters.

(END VIDEOTAPE)

SNOW: It remains to be seen just how much those social issues will weigh against issues of national security. Giuliani became a national figure and was dubbed America's mayor following his handling of the attacks on September 11 -- Wolf.

BLITZER: All right, Mary, thank you.

Our chief national correspondent John King is also watching these opening acts of the 2008 presidential campaign. The poll that Mary referred to, our recent CNN poll that was conducted a couple of weeks ago among registered Republicans, John, showed Giuliani with 29 percent, McCain 27 percent, Gingrich down at 12 percent and others in single digits. What do you make of this Giuliani decision to actually to create this exploratory committee?

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Well he needs to do that so he can raise money and start moving around the country. Now that we're in the post 2006 environment, he can't be going in to campaign for Jim Nussle for governor in Iowa or somebody else in New Hampshire. If he's going to go now it's going to be for him.

So you need a legal financial vehicle to carry you to do it within the law, so it makes sense to do it. That poll you just showed is name identification. There is not an American who's turned on the TV who doesn't know Rudy Giuliani and his amazing remarkable performance after 9/11.

But Scott Reed in that Mary's piece is dead right. Can you go and win the Iowa caucuses if you are pro-choice on abortion, pro-gay rights, and pro-gun control? Can you then carry that on into New Hampshire? There's moderate, libertarian New Hampshire in the middle, but can you get from Iowa to South Carolina with Rudy's positions on social issues? That would be a huge challenge.

BLITZER: You heard Paul Begala here in THE SITUATION ROOM during our 5:00 hour suggests that Rudy Giuliani he predicted might flip on the issue of abortion rights for women.

KING: It would not be the first time. Dick Gephardt flipped when he was -- within the Democratic Party. He went from being anti- abortion to pro-choice. George H.W. Bush, this president's father, changed his position so that he could be Ronald Reagan's running mate. It would not be the first time it has happened.

Could Rudy Giuliani do it? The charm of Rudy Giuliani, the political appeal of Rudy Giuliani is he's a straight shooter. He's a man who says what he thinks, means what he says. That could open the trap door, if you will, to his credibility but sure it could happen.

BLITZER: We did a poll the other day and asked choice for president in 2008. Among, in a hypothetical contest between Giuliani and Hillary Rodman Clinton, look at this, 47 percent, 47 percent in a hypothetical race between Hillary Clinton and John McCain, McCain gets 48 percent, 47 percent for Clinton, sampling error plus or minus three percent, pretty close, both possibilities.

KING: They are pretty close. Now remember, Republicans wanted Rudy Giuliani to run against Hillary Clinton for Senate in New York. He didn't end up doing that because of his bout with cancer and other issues. But he would be a formidable candidate if he could get the Republican nomination.

There is no question that Rudy Giuliani -- he proved this in New York City -- he can appeal to Democrats. You can't be mayor of New York City without getting a lot of Democratic votes. So if he could be the Republican nominee, he would have huge appeal. John McCain runs very good against Hillary Rodham Clinton. Those are the early front runners.

We've got a long way to go in this process, but those are certainly the big names right now. But Mitt Romney low in the polls. If you call Republican activists around the country he's doing all the things they think is necessary. But look, if you put a superstar celebrity like Rudy Giuliani into the mix, even if he only explores and in the end doesn't run, it will change the dynamic in the short term.

BLITZER: John, thanks very much.

Iowa's outgoing Democratic governor, by the way, Tom Vilsack, beat Rudy Giuliani to the punch. He actually filed to establish a full blown presidential campaign committee last week and he's expected to make a more formal announcement of his candidacy later this month.

Still to come tonight right here in THE SITUATION ROOM, what's the best way forward in Iraq? We'll tell you of some Democratic proposals could mean American troops leaving in Iraq in the next few months, at least starting to leave.

Also, the campaign's over. Let the battles begin. Now the Democrats will be in charge of the House. A battle is brewing over who will be the charge of the Democrats. I'll speak with one congressman who hopes to be a major player, the majority leader -- that's what he wants. Congressman Steny Hoyer, that's coming up right here in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Carol Costello joining us now with a closer look at some other stories making news -- Carol.

CAROL COSTELLO, CNN ANCHOR: Hello Wolf and good afternoon to all of you. You know, it seems like it would not be Florida without an election controversy. Auditors are now recounting votes and probing alleged irregularities in a tight congressional race in the state's 13th district. The contenders are vying to replace Republican Congresswoman Katherine Harris -- you remember her from the mother of all election controversies. She was Florida's former secretary of state who certified George W. Bush the winner of the disputed 2000 presidential vote in the state.

Federal health officials are warning of possible psychiatric side effects in patients taking the flu drug, Tamiflu -- side effects like delirium, hallucinations and unusual behavior. The warning is based on more than 100 cases involving children, oddly many of them from Japan. Still, we must add the usual disclaimer; the FDA says the link between Tamiflu and those problems is not firmly established so the agency is only recommending new labels urging you to monitor yourself and your loved ones if you happen to be taking Tamiflu.

It is official; there will be another monument between the Lincoln and Jefferson on the National Mall. The Reverend Martin Luther King Jr. will become the first African American civilian to be honored with a monument on the mall. At a ground-breaking ceremony today, many prominent people spoke including President Bush who praised the slain civil rights leader as a man who quote, "redeemed the promise of America."

And Wolf, as for what the monument will look like, they say it will employ all the senses by using the sound of water, stone and the earth, and it will be pretty sizable, too.

BLITZER: Historic moment in our history. Thanks very much, Carol, for that.

And just ahead, opposition to the president's policy on Iraq helped the Democrats win on Election Day, but will they really push for a change of course? And how soon might U.S. troops start pulling out? We'll go live to Capitol Hill.

Then siding with Republicans or Democrats, Joe Lieberman could hold the key to the balance of power in the Senate and he says he's not ruling anything out.

Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: To our viewers, you're in THE SITUATION ROOM where new pictures and information are arriving all the time. Happening now, how to fix Iraq -- a new debate unfolding as President Bush meets with a group trying to come up with a new course for the war in Iraq. The president says he looks forward to the ideas in the commission's upcoming report. Meanwhile, some prominent Democrats are planning a resolution calling for a phased redeployment of U.S. troops to begin in four to six months.

Also, America's mayor apparently hoping to become America's president. Rudy Giuliani has formed a presidential exploratory committee, the first step to a possible White House run in 2008.

In a story first reported just a short while ago here on CNN, Senator Mel Martinez of Florida will replace Ken Mehlman as chairman of the Republican National Committee. Republican sources saying Martinez will take on the job while still retaining his Senate seat.

I'm Wolf Blitzer. You're in THE SITUATION ROOM.

Failures in the war in Iraq certainly helped Democrats get to where they are today, poised to reclaim control of the House and the Senate. But after criticizing the war for so long, can they forge a unified plan for bringing the troops home?

Our congressional correspondent Dana Bash is keeping track of what's going on, the Democrats' strategies, and their disagreements -- Dana.

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Well, Wolf, Democrats are already trying to do something with their new power. They just couldn't with Republicans in control here, and that is try to force the president to start bringing U.S. troops home from Iraq.

(BEGIN VIDEOTAPE)

SEN. CARL LEVIN (D-MI), INTELLIGENCE COMMITTEE: That we should pressure the White House to commence the phased redeployment of U.S. troops from Iraq in four to six months.

BASH (voice-over): Carl Levin, the Senate's top Democrat on military matters, says the voters election message to change course in Iraq needs to be heard not just at the White House, but in Baghdad. The only way to make Iraqis self sufficient, Democrats say, is if Congress makes crystal clear with a resolution should start leaving soon.

LEVIN: But it is up to them, not us, not our brave and not our valiant troops. It's up to the Iraqi leadership. Do they want a civil war or do they want a nation?

BASH: Even with the new reins of power, congressional Democrats are limited in how much they can change U.S. policy in Iraq, since the president is commander in chief.

Congress could force troops to come home by cutting off funding but Democrats say that's off the table, a political non-starter which would harm servicemen and women.

Democratic resolution to start pulling troops out would only be symbolic and its strength depends on convincing Republicans to sign on. That may not be easy. For example, Republican Senator Lindsey Graham admits Iraq is in chaos, but quickly rejected the Democrats' proposal. "To start withdrawing troops would be equivalent to surrendering in the central battlefront in the war on terror," Graham said. "A misguided proposal such as this should hit a wall in the Senate."

The Democratic leader says their plan is no surrender.

SEN. HARRY REID (D), NEVADA: Does this mean pulling all of the troops out? Of course it doesn't. But it does say we must start redeploying troops as soon as possible.

(END VIDEOTAPE)

BASH: Now there's a power struggle going on in the House that may also be a signal of the direction the Democrats are going to take on Iraq. The incoming House Speaker Nancy Pelosi, threw her support behind Congressman John Murtha for the No. 2 position in the House.

The House majority leader, not the person in line for that, Steny Hoyer. The reason is because the two are good friends, Murtha and Pelosi. But also she made clear it is because John Murtha made a very high profile statement, opposition to the war about a year ago, and she says because of that, it changed the political debate and she says helped Democrats win the majority. Wolf?

BLITZER: A real battle going on for that position. Thanks, Dana, very much.

And despite Nancy Pelosi's endorsement of John Murtha, Congressman Steny Hoyer of Maryland argues he has the votes to win the majority leader's job.

(BEGIN VIDEOTAPE)

BLITZER: Congressman, thanks very much for coming in.

REP. STENY HOYER (D-MD), WHIP: You bet, Wolf. Glad to be with you.

BLITZER: I'll read to you what Nancy Pelosi wrote in this letter to John Murtha. "Your strong voice for national security, the war on terror and Iraq provides genuine leadership for our party and I count on you to continue to lead on these vital issues. For this and all you have done for Democrats in the past and especially this last year, I am pleased to support your candidacy for majority leader for the 110th Congress."

This has got to hurt. You've been a loyal deputy to Nancy Pelosi these past several years. How do you feel about this?

HOYER: Well, you know, Nancy is a very close friend of Jack's and he was her campaign manager when she was elected Whip and she gave me a heads up on this, said she was going to do this so this did not come as a surprise and very frankly I joined her in saying that I expect Jack Murtha to continue to be a leader on this very, very important issue of Iraq in the future. But I am going to be the majority leader. She has not been campaigning and my view is that no votes have been changed at this point in time, we're in good shape and we're going to win.

BLITZER: But you know, you say that, but there have been others would-be majority leaders in the Democratic and the Republican side who go into a secret vote like this thinking they're going to win. But a lot of these members when they're casting their secret ballot, they can do whatever they want.

HOYER: You're absolutely right on that, Wolf. We've all been there and done that so we'll have to see, but right now I have well over a majority of the sitting members and well over a majority of the new members saying they're going to vote for me.

BLITZER: I've spoken with several of your Democratic colleagues in the House over the past couple of days as this Steny Hoyer/John Murtha fight was developing.

And several of your supporters, many of them very well known were extremely disappointed that Nancy Pelosi decided to go with Murtha and create this rift within the Democratic Party at this very sensitive moment right now. They were hoping that she would talk Murtha out of running. I'm sure you've heard that from several of your colleagues, as well?

HOYER: Well I've heard that, but the important thing is when we get through this race that we bring the party together and frankly I don't think this is going to divide the party. There are two candidates for majority leader. Both think they can do a job.

But I think the party is going to come together, make a selection and understand full well that the American people voted for change. They voted to take us in a new direction, Wolf. And I think the party was united in that message and is going to be united in delivering on that message. So I think we're going to be a united party.

BLITZER: Here is what was written in the "New Republic" magazine almost a year ago quoting a former House Democratic leadership aide, referring to Nancy Pelosi. "She seems to thrive on conflict. When she wins a leadership race, she never stops running against that person. She beat Steny, but she has never stopped punishing him for running in the first place."

I suppose you remember that article in the "New Republic?"

HOYER: Now that you remind me, I remember, yes. Look. Nancy and I work together very cooperatively. Nancy has said that, she said it on television just the other day, she works well with me. She works well with Jack. I think she is going to work well with me in the future as she will work well with Jack. And so I don't think that's going to be a problem.

I think much is made of the conflict that frankly both Nancy and I say does not exist. Are the differences of opinion from time to time? Certainly, there are. But Nancy had differences with Dick Gephardt. She had a close, very effective working relationship with him and we'll continue that. We'll continue it because Nancy and I are both focused on our Democratic message, our Democratic agenda and having success for our country and for working people in this country.

BLITZER: I was going to say, Congressman, the big difference, at least on the surface between you and John Murtha is over Iraq. He has taken a very strong stance the United States has to redeploy its troops very, very quickly. You've been much more I guess of a hard- liner on this issue, taking a more moderate stance if you will saying the United States can't precipitously withdraw.

HOYER: And nobody is suggesting at this point in time a precipitous withdrawal, I think. We are suggesting a phased redeployment.

It's important, Wolf, for you to know and for your viewers to know, that Jack Murtha and I, along with the Democratic leadership in the House and Senate signed three letters to the president of the United States. One, the end of July, one in September and one in October saying first of all, your policy is not working in Iraq.

We need to change course in Iraq. Suggesting a phased redeployment, suggesting implementation of constitutional change, which would guarantee to the sectarian factions equal treatment and a piece of the pie if you will, urging the president to urge Iraqi government to disarm militia which are exacerbating the situation on the ground.

So Jack Murtha and I both signed that letter. Carl Levin, Senator Levin has now said that he wants to have a resolution, a four to six-month phased redeployment, not necessarily meaning everybody out at that point in time. But the message we have been sending is that we need to make it clear to the Iraqi government that the situation that currently exists is not sustainable, that we have to have a change, that we're going to redeploy our troops, we're going to get them out of harm's way. So I think there is a greater unity than you might think.

(END VIDEOTAPE)

BLITZER: Steny Hoyer, the man who would like to be the majority leader, speaking with me just a little while ago.

Up ahead tonight, he lost his party primary but won the election as an independent. Is Joe Lieberman now tempted to align himself with the Republicans and not necessarily with Democrats? The story that has the potential at least to impact the battle of power in the Senate.

Plus, in many case they ousted the incumbents. Now the freshman congressional class of 2006 arriving in the nation's capitol, and at least one new Democratic Congressman says he's nervous. A bunch of them are nervous, though. Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK) BLITZER: What a difference an election makes. Many people thought his political future was in peril only a few months ago. Yet now Senator Joe Lieberman of Connecticut could just be one of the most powerful people in the United States Senate.

Let's turn to CNN's Carol Costello. She's watching the story for us -- Carol.

CORAL COSTELLO, CNN CORRESPONDENT: Wolf, Joe Lieberman certainly made many sit up and say, what did he just say? Could this longtime Democrat switch parties and allow the Republicans to maintain their edge in the Senate, just as the Democrats are ready to grab it?

We do know this: Joe has his mojo back.

(BEGIN VIDEOTAPE)

SEN. JOE LIEBERMAN, (D) CONNECTICUT: I'm Joe Lieberman, and I approve of this election.

COSTELLO (voice-over): It was an amazing achievement, a Democrat losing in the primary, losing his party support and money, only to run as an independent in the general election. And he took the high road, never attacking Democrats, even telling Wolf Blitzer in the SITUATION ROOM he remained blue through and through.

BLITZER: Can you look into the camera and tell the people of Connecticut once and for all, you would not then join the Republican caucus?

LIEBERMAN: That's absolutely what I've said.

Are you representing the Republicans here?

BLITZER: I'm asking the questions.

LIEBERMAN: No. The answer is -- I have made that clear. I...

BLITZER: So there's no chance you would side with the Republicans?

LIEBERMAN: No.

BLITZER: Even though you would become a chairman, potentially, of a committee?

LIEBERMAN: No, I'm a Democrat and I will remain a Democrat.

COSTELLO: But now that he's won on an independent ticket, his tone seems to have changed. When asked on "MEET THE PRESS" if he'd cross over and become red:

LIEBERMAN: I'm not ruling it out, but hope I don't get to that point.

COSTELLO: And that would be bad for the now-famous Democratic sweep. If Lieberman turns Republican, the Senate Democrats would lose their new found majority.

Why is Lieberman being coy? Some high-ranking Democrats say it's payback time.

PROF. JOHN ORMAN, FAIRFIELD UNIVERSITY: I wouldn't say gloating, but he feels comfortable about himself. He said for the first time he feels very, very independent.

COSTELLO: But it could be Lieberman is just feeling the love for those who put him back in office. For a guy who's been a Democrat for decades, he sure got a lot of Republican support. Senator Susan Collins of Maine spoke glowingly of him. John McCain allowed two of his aides to consult with the Lieberman camp. Newt Gingrich endorsed his run. Even President Bush chose to support him deciding not to outwardly support Connecticut's Republican candidate.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I'm going to stay out of Connecticut.

(END VIDEOTAPE)

COSTELLO (on camera): Get this: 70 percent of those who voted for Lieberman in Connecticut were Republicans. Still, no Democrat I talked with today actually thinks he'll switch. It's more likely Lieberman is sending a message, and that message is, play nice with me or I can make your life really, really hard -- Wolf.

BLITZER: Carol, thanks very much.

And as you know, the Democrats have already promised Senator Lieberman to become chairman of the Senate Homeland Security Committee, which is what he wants. Thanks very much for that.

And you can bet there were plenty of snapshots and nervous smiles on Capitol Hill today. Incoming members of Congress started getting the lay of the land on Capitol Hill. This was their Orientation Day, first day at school, if you will.

Our Congressional correspondent Andrea Koppel followed one freshman around.

(BEGIN VIDEOTAPE)

ANDREA KOPPEL, CNN CONGRESSIONAL CORRESPONDENT: It's early Monday morning. And Indiana's congressman-elect Brad Ellsworth still can't believe it. A week after crushing Republican incumbent John Hostettler in Indiana's 8th district, Ellsworth, a sheriff from southern Indiana, arrived in the nation's capital with at least 50 other freshmen lawmakers to start his new job.

ELLSWORTH: Obviously, if you said, it didn't make you nervous, it -- it would be a lie.

KOPPEL: A conservative Democrat, Ellsworth was one of three Indiana Democrats to help their party regain its majority in Congress. ELLSWORTH: It was refreshing to me, on those positions, that people, when I would go to Democratic rallies, and people were kind of saying: We're so glad that you're -- you're pro-gun. We're so glad you're pro-life.

KOPPEL: But the same conservative values that helped Ellsworth and a number of other new Democrats, like North Carolina's Heath Shuler, win in traditionally red states, are likely to put him at odds with many in his own party.

Ellsworth says Nancy Pelosi, the likely next speaker of the House, has already told him not to worry.

ELLSWORTH: She said, always do what the people of the 8th District of Indiana want you to do. Those are the people that sent you here. And those are the people that will send you back home.

KOPPEL: And, so, even on his first day on the new job, Ellsworth is busy trying to forge alliances.

ELLSWORTH: I'm in southern Indiana.

UNIDENTIFIED MALE: Southern Indiana.

ELLSWORTH: South of the western -- the western-southern part of Indiana -- a lot of beans, a lot of corn.

UNIDENTIFIED MALE: Yes.

ELLSWORTH: And, yes, if we want to solve the dependency on foreign oil, come to my backyard.

To have the chance to make a difference and be one of the ones to make a difference in the way the country works and the direction, what an honor. And -- and people that mess it up, you just want to smack them and say, what were you thinking?

(LAUGHTER)

KOPPEL (on camera): That's not what you expect hear a congressman say. They -- you expect a sheriff to say that.

ELLSWORTH: Well, you know, and I have still got a little bit of that in my -- 25 years.

KOPPEL (voice-over): When Congressman-elect Ellsworth says there's a new sheriff in town, he really means it.

Andrea Koppel, CNN, Capitol Hill.

(END VIDEOTAPE)

BLITZER: And up ahead, will identifying sponsors of Congressional earmarks, you know, those anonymous pork spending, will it actually curb spending? Jack Cafferty standing by with your e- mail. And Nancy Pelosi, poised to become the first female Speaker of the House in American history, also becoming some fresh fodder for comedians. CNN's Jeanne Moos, standing by to take a look.

You'll want to see this. Stay with us. You're in the SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Jack's in New York with "The Cafferty File" -- Jack?

CAFFERTY: Thanks, Wolf.

The question this hour is this: will identifying the sponsors of congressional earmarks, those pork projects help to curb federal spending?

Tony writes: "Jack, are you dealing with a full deck? No. Identifying sponsors of congressional earmarks will do little or nothing to curb spending. It's how Washington works. Nice try."

Chris in New Jersey: "Knowing how these earmarks are used to create funds for more corruption makes me sick. Just when you think you know how corrupt everything is, you find out something else. It just goes to show you Joe Public is in the dark and we are easily taken advantage of."

Brad writes from North Dakota: "Here in North Dakota, we love pork from the feds. Labeling the barrel will only ensure that we vote for our beloved pork producers."

Sandy in Tampa, Florida: "Yes, I want to know the name of those elected officials who were putting their pet projects on my credit card."

Fil in Texas: "I'm a little ambivalent about Congress' pork eating contests. I mean, I'd rather some idiot congressman finance studies of Siberian tigers bathroom habits than give huge chunks of change to the rich oil companies. I wonder if I could get paid by Congress to see how watching you in THE SITUATION ROOM warps my brain."

And Jason in Illinois: "I think identifying congressmen who spend money on ridiculous pork projects would reduce their wasteful habits. In fact, I think they should be identified by wearing pig snouts, ears and tails whenever they're out in public. Maybe they should have to snort like a pig anytime a constituent says sooey."

If you didn't see your e-mail here, you can go to CNN.com/CaffertyFile, where you can read some more of these online. Wolf?

BLITZER: See you tomorrow, Jack, thanks very much.

And let's find out what's coming up at the top of the hour. Paula is standing by for that -- Paula? PAULA ZAHN, CNN ANCHOR: Hi, Wolf, thanks so much. Among the top stories we are picking tonight, does father really know best? We're going to look into the claim that the former President Bush is riding to his son's political rescue. We'll see why top members of the previous Bush administration are helping out the current White House on Iraq.

Plus, a controversial claim that terrorists are too weak to attack America again. Are we being scared by our politicians for no reason? Joining me at the top of the hour we'll debate that one. Especially with an insider at the FBI -- Wolf?

BLITZER: Sounds good, Paula. We'll be watching.

Up next here in THE SITUATION ROOM, comedians of all stripes are having a bit of a field day with the soon-to-be House Speaker Nancy Pelosi. Have you seen some of this? CNN's Jeanne Moos standing by to take a look.

(COMMERCIAL BREAK)

BLITZER: Let's take a look at some of the hot shots coming in from our friends over at the "Associated Press," pictures likely to be in your hometown newspapers tomorrow. We'll start in Florida in the 13th congressional district. Election workers collecting data for a recount. Appropriately enough, it's for the seat vacated by Katherine Harris.

In Venezuela, President Hugo Chavez meets with his Brazilian counterpart for the inauguration of a new bridge. The bridge will cut the time it takes for Brazilian goods to reach Venezuela.

Here in Washington, President Bush and former president Bill Clinton together at the groundbreaking of the Martin Luther King Jr. Memorial on the National Mall. A joke, President Bill Clinton has become his fourth brother.

And in Los Angeles, photographers take pictures of penguins on the white carpet at the premiere of the children's movie "Happy Feet."

Some of today's hot shots, pictures often worth a thousand words.

History may be written by the victors but it's the comedians who write the jokes and they're having sort of a field day with the incoming House Speaker Nancy Pelosi. Here's CNN's Jeanne Moos.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): When she can stay home on a Saturday night and watch herself.

UNIDENTIFIED FEMALE: Live from New York, it's Saturday night!

MOOS: The good news for Nancy Pelosi is that it's expected she'll soon be speaker. The bad news is, the comedians are already speaking about her. DAVID LETTERMAN, TALK SHOW HOST: Nancy Pelosi.

JAY LENO, TALK SHOW HOST: Nancy Pelosi.

MOOS: Even fake conservatives who gag at her very name. The previous speaker never got this kind of attention.

LENO: Robert, who is this?

UNIDENTIFIED MALE: Rush Limbaugh?

MOOS: By beating the Republicans, the Democrats won the right to get beat up on.

PELOSI: And the Democrats intend to lead the most catastrophic Congress in history.

MOOS: She's getting it from comedians, she's getting it from Pelosi haters on the Internet, portrayed as the wicked witch with the tag line...

UNIDENTIFIED FEMALE: ... I'll get you my pretty.

MOOS: The witch theme is popular.

UNIDENTIFIED FEMALE: Nancy Pelosi could be the next speaker of the House.

BILL O'REILLY, FOX NEWS HOST: You may indeed be saying hello to San Francisco values.

MOOS (on camera): When it comes to looks, they say female politicians get a lot more scrutiny than men. Back off, that's enough scrutiny. But instead of focusing on Nancy Pelosi's pearls of wisdom, the focus tends to be on her pearls, period.

(voice-over): For instance, this photo op resulted in requests for information on where to get the speaker-to-be's string of pearls. Shopping tips online to the rescue. These sure look a lot like Pelosi's pearls for a near $3,999. We didn't hear of anyone seeking information on where to get Senator Harry Reid's tie.

So far, the favorite comedy angle has been Pelosi's so-called...

UNIDENTIFIED FEMALE: ... San Francisco values.

MOOS: The real Pelosi may be celebrating family values with a new grandchild.

PELOSI: Eight pounds, ten and a half ounces.

MOOS: But on "Saturday Night Live" her speech was interrupted.

UNIDENTIFIED MALE: Nancy, you need to OK this.

UNIDENTIFIED FEMALE: Dean, I'm kind of in the middle of something.

UNIDENTIFIED MALE: I'll come back.

UNIDENTIFIED FEMALE: Dean about your outfit, it's all right now but as of January you might have to go with more of a business look for the office.

MOOS: Forget leather. Pelosi is going to need armor to protect herself against jokes like these.

UNIDENTIFIED MALE: He's a human ashtray.

UNIDENTIFIED FEMALE: Dean, this office is non-smoking.

UNIDENTIFIED MALE: Just pot.

UNIDENTIFIED FEMALE: Oh.

MOOS: Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

BLITZER: Leave it to Jeanne Moos to find a little humor there as well. Thanks very much for joining us. Tomorrow here in THE SITUATION ROOM, we're going to be ready to line up the race to '08. Is Hillary Rodham Clinton a lock? We'll take a look at other Democrats, what their options are. Until then, thanks very much for joining us. I'm Wolf Blitzer. Let's go to Paula, she's in New York -- Paula?

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